Municipal Construction and Development Fee Report Due June 30

June 22, 2020

Cities are statutorily required to file this annual report with the Department of Labor and Industry.

Cities must report all construction and development-related fees collected from developers, builders, and subcontractors to the Minnesota Department of Labor and Industry (DLI) by June 30, except if these fees are $5,000 or less.

If your city has not collected more than $5,000 in construction and/or development-related fees in the last year, it is recommended that the city still notify DLI of this fact.

During this year’s regular legislative session, the Legislature discussed making statutory changes to the Municipal Construction and Development Fee Revenue and Expenses Report, but no changes were made.

Report requirements

The annual report is required by Minnesota Statutes, section 326B.145. The report must include:

  • The number and valuation of units for which fees were paid.
  • The amount of building permit fees, plan review fees, administrative fees, engineering fees, infrastructure fees, and other construction and development-related fees.
  • The expenses associated with the municipal activities for which fees were collected.

Cities can submit the required report in one of two ways:

  1. Submit online. The online Municipal Revenue Reporting System is available for municipalities to complete, submit, and print a report online. Previous reports can also be viewed.
  2. Submit by mail. Complete and mail this form in either PDF or Microsoft Word format:

Penalties for noncompliance

If cities fail to submit this report, they could be subject to administrative enforcement action, including monetary penalties of up to $10,000.