Threshold for municipal reporting of construction-related and development-related fee collections increased, and commissioner of labor and industry required to establish a cost per square foot valuation of certain properties for the purpose of setting municipal building permit fees.

HF 1137 increases the annual reporting threshold for municipalities from $5,000 to $7,000 for construction and development-related fees collected from developers and builders. It requires Minnesota's Commissioner of Labor and Industry to establish a cost-per-square-foot valuation for specific residential properties (one-family, two-family, townhouses, and accessory buildings). This valuation will help municipalities set building permit fees more consistently. The bill directly affects cities and towns that collect these fees, as well as developers and construction businesses paying them. The changes amend Minnesota Statutes sections 326B.145 (reporting requirements) and 326B.153 (fee-setting mechanisms).