Whether you have heard of the Mills Act or not, it’s active and can save you a huge amount of money on taxes.
Benefits of the Program
To help preserve LA’s historic buildings, a new tax incentive was created. Called the Mills Act, it offers homeowners in qualifying historic buildings as much as 70% or more off their property tax bills. That means if you buy a loft in a historic building, you could potentially save thousands of dollars each year. That’s money you can use to help furnish your new loft home, put more money down at purchase to reduce your monthly mortgage payments, trade up to a larger loft or even just put in your pocket.
Benefits to Owners
The Mills Act offers a substantial reduction in property taxes for owners of “qualified historical properties” provided they agree to preserve, restore, rehabilitate, and maintain the historical and architectural character of their properties.
Mills Act participants may realize substantial property tax savings each year for recently improved or purchased older properties because valuations of Mills Act properties are determined by an Income Approach to Value rather than by the standard Market approach to determining appraised value. The Income Approach, divided by a capitalization rate, determines the assessed value of the property. In general, the income potential for an owner-occupied residential property is calculated by examining comparable rents for similar properties in the area, while the income amount on a commercial property is based on actual rent received. Because rental values vary from area to area, actual property savings may vary. In addition, as County Assessors are required to assess all property annually, Mills Act properties may realize slight increases in property taxes each year.
If you would like a list of Mills Act approved Loft buildings in Downtown Los Angels, or for more information on Mills Act properties, contact me and put my team to work for you today!
If you are considering selling or buying and would like a private consultation, please contact me at 213-808-4324
Downtown LA Luxury Loft Specialist
Call or Text 213-808-4324
david@LALofts.me
