Some of San Diego County’s most recognizable buildings are getting some very friendly treatment from the taxman.
A snapshot released today shows that historic-property tax breaks under California’s Mills Act sliced roughly $29 million off property tax bills across the county. The county’s accounting shines a spotlight on a relatively small club of landmark conversions and upscale residences — downtown office towers and hotels, La Jolla condos, and Coronado beachfront homes — that captured the biggest reductions.
Top recipients and county totals
County assessor data puts total Mills Act savings at about $29 million. Among the heaviest hitters: the John D. Spreckels Building, normally assessed at roughly $138.5 million, is valued for tax purposes under the Mills Act at about $19.9 million. That gap works out to an estimated $1.2 million in yearly relief. The Guild Hotel’s contract delivers roughly a $696,585 annual tax benefit.
Other large write-downs include La Jolla properties and luxury condominiums that show six-figure to seven-figure yearly savings, according to an analysis from The San Diego Union-Tribune.
How the Mills Act works
The Mills Act, a state law passed in 1972, lets cities and counties strike 10-year contracts with owners of historically designated properties in exchange for reduced property taxes. Instead of relying on straight market comparisons, assessors use an income-based formula to calculate Mills Act values. For high-dollar landmarks, that alternative math can translate into steep percentage discounts…