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City announces Mills Act application period; owner asks how tax benefit works

Salinas Historic Resources Board · May 4, 2026
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Summary

Staff opened the Mills Act application period (May 1–July 31) and explained the contract, 10-year work plan, and ongoing tax relief; a property owner asked whether the tax reduction is ongoing (staff said it is).

City planning staff announced the annual Mills Act application period and described how the program works for historic property owners.

Planning Manager Grant Leonard said the Mills Act application window runs May 1 through July 31. He explained the program: a property owner enters into a contract with the city designating their property as a local historic resource, prepares an itemized 10-year work plan for preservation and rehabilitation work with estimated costs, and — once approved by the board and City Council and recorded with the county — the owner receives a reduced property tax rate in subsequent years. "The property owner receives discounted tax rate...ongoing," Leonard said when asked if the tax reduction continues beyond the first year.

A member of the public, Patricia Paddock, said she and her husband own the Empire House at 119 Cayuga and asked whether the Mills Act tax reduction is a one-time benefit or ongoing. Leonard confirmed the reduction continues annually while the contract is in place and noted owners must submit an annual report documenting progress on the work plan. He said staff will circulate links and application materials and promote the program through social media and GovDelivery notices, and staff will also notify owners of properties already on the city's historic resources list.

Board members asked about program logistics and an annual ceiling; a board member referenced an annual ceiling of about $100,000 for the program, which staff said was their recollection but asked staff to confirm fiscal details. Staff emphasized that the Mills Act contract is separate from the standard permit process: preservation work still requires normal permits even if a property has a Mills Act contract.