Minimum state building permit surcharge

The Minnesota Statutes § 326B.148 "SURCHARGE" has been changed for two years effective July 1, 2011, until June 30, 2013.

The change only applies to the "Permits based on Fixed Fees, Part 1" and "Permits based on Fixed Fees, Part 2" portions of the Minnesota Department of Labor and Industry's (DLI) surcharge reporting form.

The minimum surcharge for a "fixed fee" permit is $5, beginning July 1, 2011

Municipalities must begin collecting the $5 minimum surcharge fee July 1, 2011, and continue to collect the new minimum through June 30, 2013.
If the fee collected for the "fixed fee" permit is less than $10,010, the surcharge is $5. Fixed fee permits with a fee of less than $10,010 are reported in "Permits based on Fixed Fees, Part 1" of the surcharge form.
If the fee collected for the "fixed fee" permit exceeds $10,010, the fee is multiplied by .0005 because $10,010 is the point where the surcharge would increase to $5.01. Fixed fee permits with a fee of $10,010 or more are reported in "Permits based on Fixed Fees, Part 2" of the surcharge form.
The remainder of the surcharge law did not change

The new $5 surcharge fee also applies to all Requests for Electrical Inspection (REI) (i.e. electrical permits) filed with the Construction Codes and Licensing Division.

The change to the surcharge law is underlined below. Minnesota Statutes 2008, section 326B.148, subdivision 1, is amended to read:

Subdivision 1. Computation. To defray the costs of administering sections
326B.101 to 326B.194, a surcharge is imposed on all permits issued by municipalities in connection with the construction of or addition or alteration to buildings and equipment or appurtenances after June 30, 1971. The commissioner may use any surplus in surcharge receipts to award grants for code research and development and education.
If the fee for the permit issued is fixed in amount the surcharge is equivalent to one-half mill (.0005) of the fee or 50 cents, except that effective July 1, 2011, until June 30, 2013, the permit surcharge is equivalent to one-half mill (.0005) of the fee or $5, whichever amount is greater.