I went on a Compass Mid-Century Modern tour in Palm Springs, and one of the highlights was touring the legendary “House of Tomorrow”— famously known as the Elvis Honeymoon House. It’s currently listed for a whopping $8,655,000, but what caught my attention just as much as the flying saucer roofline was that this property qualifies for Mills Act tax savings — and the future owner will save around 60% on property taxes each year. That’s not a typo.
The Mills Act, is one of the best-kept secrets for California homebuyers — especially those who love historic architecture. It’s a property tax reduction program designed to support the preservation of historically significant buildings. In a nutshell: you get a break on your property taxes in exchange for maintaining the character and integrity of a historic home.
In 1972, California State Senator James R. Mills, introduced the Act, after a developer wanted to demolish the historic Hotel del Coronado in San Diego. Thankfully, he stepped in — and decades later, his namesake law continues to save both architecture and money.
Here’s how it works: The Mills Act is a contract-based agreement between the homeowner and the city (in L.A., that’s the Office of Historic Resources). The initial contract runs for 10 years and renews automatically each year. In return for maintaining the property according to specific preservation standards, you can save anywhere from 20% to 70% on your property taxes annually. That's huge — especially when you remember that in Los Angeles, property taxes are roughly 1.25% of your purchase price every single year. You’ll eventually pay off your mortgage — but the tax bill never goes away. So reducing it can be a game-changer.
Amazingly, the Mills Act isn’t just for properties that already have it. I recently suggested a client apply for it on a historic home they’re purchasing. Homeowners of qualifying historic buildings can apply post-purchase and still benefit from this incredible program.
I also had a client buy a condo in a Mills Act historic building, and when you factor in the tax savings, the HOA fees essentially felt like nothing. There are many L.A. buildings that fall under the Mills Act such as The Eastern Columbia Building, National Biscuit Company Lofts and The Broadway Hollywood, to name a few.
So if you ever see “Mills Act” on a listing, know that it’s more than just a fun fact — it can mean serious savings. And if you’re in love with a historic property that doesn’t yet have it, apply for it!
