Historic homes
The Mills Act in Pasadena
A plain-English guide to California's main property tax incentive for historic homes, and how to tell whether a Pasadena property might qualify.
What it is
The Mills Act is a California state law that lets cities sign contracts with owners of qualified historic properties. In exchange for preserving and maintaining the property, the owner's property tax is reassessed using an income-based formula, which often lowers the bill.
The contract
Contracts run for a minimum of ten years and renew automatically each year unless either side gives notice. They stay with the property when it is sold, so buyers inherit both the savings and the obligations.
Who qualifies
Generally a property must be historically designated — for example an individual landmark, a contributing building in a landmark district, or a National Register listing. Each city sets its own eligibility rules, application windows and caps.
What owners commit to
Owners agree to a work plan of rehabilitation and maintenance, to follow preservation standards for exterior changes, and to allow periodic inspections.
Next steps
Check a Pasadena property
- Look up the address to see whether it is designated or inside a landmark district.
- Ask the City of Pasadena's historic preservation staff about current Mills Act eligibility, deadlines and fees.
- If you're buying, ask the seller whether an existing Mills Act contract is recorded on the property.
This guide is general information, not tax or legal advice. Program details are set by the City and can change.