When purchasing Historic Homes, you most certainly will come across the term “Mills Act.” What is this mysterious piece of legislation and what does it mean to you? Read on!
Simply put, the Mills Act presents a huge tax saving for those who purchase a Historic Home. The Mills Act grants property tax relief for homeowners of qualified historic properties. The property tax relief is granted to provide property owners incentive to maintain and preserve their historic properties. Before you start hammering away, city approval is required to ensure you maintain the integrity and standards of the homes period.
Historic properties that are owner-occupied, single-family residences and income-producing commercial properties are recognized under the Act. While the amount of tax savings varies, the Mills Act allows for up to 50%. The types of preservation conditions established by the Mills Act Agreement are different for each property’s specific needs, and the agreement is transferred to the new owner when a property is sold.