[Calclg-l] Fiscal Impacts of mills Act

[Melanie Mullis]

The City of Ontario has approx. 50 Mills Act contracts.  The City began
entering into Mills Act contracts in the late 1990's.  Last year we went
back and analyzed the property tax reductions that the homeowners
received and found that we had over estimated the amount of taxes the
property owners would save (and over exaggerated the amount of impact to
the City).  We also found that long time homeowners (with Prop 13
benefits did not experience really any savings (since the property taxes
are determined by a three way analysis).  Since there was a rapid
increase in housing costs during this timeframe and that housing is
tight, the property taxes appear to only be reduced for about 5 years at
which time they "catch" up with what would have been paid in property
taxes for new homeowners.  We do find the Mills Act a benefit to
increasing the number of owners wanting their property historically
designated since having a Mills Act contract continues to be a benefit
to selling a house.  

 

Two things I would suggest (that we are now implementing) are a signed
disclosure form stating that the reductions from a Mills Act contract
are only estimates and are subject to calculation by the Assessors
office.  Second, we are beginning a monitoring program to ensure the
improvements are being done.  I would suggest you build this into your
program from day one - so homeowners expect that they will be asked to
submit photos and receipts of the work done to comply with the contract.

 

 

 

Melanie Mullis, Senior Planner

City of Ontario

303 East "B" Street

Ontario, CA 91764

Phone:  (909) 395-2430

Fax:  (909) 395-2420

Email:  MMullis at ci.ontario.ca.us <mailto:MMullis at ci.ontario.ca.us> 

________________________________

From: calclg-l-bounces at ohp.parks.ca.gov
[mailto:calclg-l-bounces at ohp.parks.ca.gov] On Behalf Of Clovis, Meg
x4913
Sent: Wednesday, December 19, 2007 2:42 PM
To: calclg-l at ohp.parks.ca.gov
Subject: [Calclg-l] Fiscal Impacts of mills Act

 

The County of Monterey is considering implementing the Mills Act but
would like input from other jurisdictions re: adverse affects due to
reduced property tax revenues. In addition, any advice about pitfalls to
avoid would be appreciated.

Thanks for your assistance - 

Meg Clovis 
Cultural Affairs Manager 
Monterey County Parks 

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