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SF1993 (Legislative Session 94 (2025-2026))

Threshold for municipal reporting of construction-related and development-related fee collections; commissioner of labor and industry establishment of a cost per square foot valuation of certain properties for the purpose of setting municipal building permit fees requirement

Related bill: HF1137

AI Generated Summary

This bill proposes amendments to Minnesota Statutes 2024 regarding municipal reporting of construction-related and development-related fee collections and the valuation of certain properties for building permit fees.

Key Provisions of the Bill:

  1. Increased Reporting Threshold for Municipal Fees:

    • Municipalities must report to the Department of Labor and Industry all construction-related and development-related fees collected if total fees exceed $7,000 in a reporting year (previously $5,000).
    • The report must include:
      1. The number and valuation of units for which fees were paid.
      2. The amount of various fees collected (building permits, plan reviews, administrative, engineering, infrastructure, etc.).
      3. The expenses associated with activities funded by these fees.
    • Municipalities failing to comply with reporting requirements will be subject to penalties under section 326B.082.

  2. Establishment of a Cost per Square Foot Valuation:

    • The Commissioner of Labor and Industry will establish a cost per square foot valuation for new one-family and two-family townhouses and accessory utility buildings.
    • This valuation will be used by municipalities to determine building permit fees.

Overall Impact:

  • The bill increases transparency in municipal fee collection while providing a more standardized approach to setting building permit fees based on square footage valuations.
  • By raising the reporting threshold, the bill reduces administrative burdens on smaller municipalities collecting smaller amounts in fees.
  • It ensures a consistent and predictable valuation system for homebuilders and developers.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 26, 2025HouseFloorActionIntroduction and first reading
February 26, 2025SenateFloorActionIntroduction and first reading
February 26, 2025HouseFloorActionReferred toState and Local Government
February 26, 2025SenateFloorActionReferred toLabor

Citations

 
[
  {
    "analysis": {
      "added": [
        "A new fee threshold for annual reporting by municipalities."
      ],
      "removed": [
        ""
      ],
      "summary": "This amendment modifies the reporting requirements for municipalities regarding construction and development-related fees under section 326B.145.",
      "modified": [
        "Increases the reporting threshold from $5,000 to $7,000."
      ]
    },
    "citation": "326B.145",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Section 326B.082 provides remedies for municipalities failing to comply with reporting requirements under section 326B.145.",
      "modified": [
        ""
      ]
    },
    "citation": "326B.082",
    "subdivision": ""
  }
]

Sponsors