OSA Weekly Update - 4/14/2023

1. Message from Auditor Blaha

2. Released: 2021 Financial and Investment Report of Fire Relief Associations

3. TIF: A Primer for City Councils (& Other TIF Authorities)

4. Avoiding Pitfall: Surety Deposits for Non-Minnesota Construction Contractors

1. Message from Auditor Blaha

This coming Monday, April 17 at 11:00 a.m. our office will present the 2023 State of Main Street. I will be joined by local government leaders representing counties, cities, and townships in MN.

This presentation is the culmination event following four regional listening sessions in March that brought together the expertise of local government leaders and our data.

If you are a member of the press, you are welcome to join us in-person in Capitol Press Room B971 or virtually via Zoom. The press conference will be live streamed on YouTube for the public. We hope you will join us!

2. Released: 2021 Financial and Investment Report of Fire Relief Associations

This week State Auditor Julie Blaha released the Financial and Investment Report of Volunteer Fire Relief Associations. The Report summarizes and evaluates the finances, basic benefit structure, and investment performance of Minnesota’s fire relief associations, and includes annual benefit levels, municipal contribution amounts, fire state aid amounts, and rates of return for each relief association.

3. TIF: A Primer for City Councils (& Other TIF Authorities)

For local elected officials new to Tax Increment Financing (TIF), the TIF Division offers a video that provides a brief overview of key concepts and considerations to understand when evaluating whether to approve the use of TIF. You can find the video on the OSA website.

See all of the available OSA training videos on our website.

If you have any questions please contact us at TIF@osa.state.mn.us.

4. Avoiding Pitfall: Surety Deposits for Non-Minnesota Construction Contractors

Minnesota entities contracting for construction work with an out-of-state contractor must "deduct and withhold eight percent of payments made to the contractor if the value of the contract exceeds $50,000." Amounts withheld are deposited with the Minnesota Commissioner of Revenue who uses them as a "surety to guarantee that the contractor fulfilled the requirements for Minnesota withholding, sales and use, franchise, and income taxes.”

This requirement may be waived by the Commissioner of Revenue. In order to obtain an exemption, the out-of-state contractor must obtain Department of Revenue approval by filing Form SDE, Exemption from Surety Deposits for Non-Minnesota Contractors. The form explains when an exemption may be approved.

The full Avoiding Pitfall is available on the OSA website.