While Coronado is known for its pristine beaches and high-end properties, it is important to acknowledge the island’s deeply rich history.
Simply strolling along the walkways or cruising the streets in a golf cart, as is the case for many islanders, can double as an educational walk down memory lane.
Recognizing that the community has unique resources and properties to reflect the city’s historical heritage, the City of Coronado developed the Historic Preservation Program in 2000.
This program encourages the preservation of historic resources important to the city’s past. Designated historic properties cannot be easily demolished and must be continually maintained and preserved.
Islanders may recognize homes like the historic Chez Loma, located in the Carez Hizar House, as a historical landmark, and there are many others scattered around the island.
Owners of properties that are designated historic resources are eligible to apply for a Mills Act Agreement, a contract that, in exchange for the preservation of a Historic Resource, provides a reduction in property taxes.
Mills Act enacted in 1972
The Mills Act is a state-wide endeavor in California.
According to the Mill’s Act Property Tax Abatement Program, the Mills act is an important economic incentive in California to promote the preservation of residential neighborhoods and revitalization of downtown commercial districts.
The Mills Act legislation was enacted in 1972.
It grants local governments of cities and counties the authority to enter contracts with owners who have qualified historic properties. Those who participate may be granted property tax savings between 40% and 50% each year as determined by the Income Approach to Value.
Coronado’s average property tax rate of 1.05% according to the County of San Diego, is relatively higher than the California state average property tax rate of 0.71%, according to smartasset’s property tax calculator.
Reducing that amount by 40% to 50% with the Mills Act would significantly decrease your property taxes.
Coronado itself has 164 properties with a Recorded Mills Act Agreement, according to Coronado’s Historic Preservation.
10-year contract
The agreement is a 10-year contract. To be eligible for the Mills Act, a property must first be designated as a Historic Resource in Coronado.
If you are interested in determining whether or not your property may qualify as a historic resource, there are a few things to keep in mind before submitting a Historic Significance Application to the Community Development Department.
First, your property must be 75 years old or have achieved historical significance within the past 75 years.
Second, your property must meet two or more of the following criteria:
Identifying with a person or event of significance in local, state, or national history, possessing distinctive characteristics of an architectural style, reflecting special elements of Coronado’s military, cultural or social history, and lastly, is representative of the work of a notable builder or architect.
Besides gaining reduced property taxes through the Mills Act, owners of historic resources can apply for more benefits like exceptions to some zoning standards, reduction to some permitting fees, and the use of the California State Historic Building Code.
To see if your property qualifies, visit https://www.coronado.ca.us/256/Historic-Preservation.
Trusted, experienced real estate agent
For more help in determining whether or not your property may qualify as a Historic Resource, don’t hesitate to reach out to me at (619) 568-0568 or info@simonerealestategroup.com.
As a trusted and experienced real estate agent in your area, I not only understand the value of your property, but am also here to provide clients with money-conscious expertise, such as the potential to qualify for the Mills Act and reduce your property tax amount.
Contact me today for more information on the Mills Act!
