Tax Cut Proposal Would Reward Historic Preservation

A proposal to reward historic preservation under the Mills Act is under scrutiny at Orange City Hall.

The 1976 statewide act allows cities to cut property taxes for owners of historic buildings who agree to renovate their properties. A 10-year contract is signed and renewed automatically unless problems arise, Community Development Director Jack McGee said. City Council members said the measure could create a number of controversies.

With some 800 Old Towne properties on the National Register of Historic Places, the city could face tax losses of $7,000 to $20,000 a year, officials said. The school district could feel twice the impact.

Some council members said they also are wary of the program’s oversight process and about launching a measure that would help only one group of property owners.

But preservationists countered that the tax cut is justified.

“This place in history is preserved for everyone,” Joan Crawford of the Old Towne Preservation Assn. said.

At a meeting Tuesday, the City Council postponed a vote on the measure, pending further study. Councilman Dan Slater abstained, citing his ownership of historic buildings that would be eligible for the tax cut.