OSA Weekly Update - 2/6/2026
1. Message from Auditor Blaha
2. TIF: County Administrative Expenses
3. Released: 2024 TIF Annual Legislative Report
4. Relief Associations: Fire Chief Service Credit Certification
6. Avoiding Pitfall: Surety Deposits for Non-Minnesota Construction Contractors
7. Deadlines
1. Message from Auditor Blaha
TIF is one of most interesting, and complicated, funding mechanisms is Minnesota. To understand it better, read the Tax Increment Financing (TIF) Legislative Report my Office released last week. The Report summarizes 2024 activity reported in 2025 by 373 development authorities for 1,657 districts.
You can view the full report on the OSA website.
2. TIF: County Administrative Expenses
Counties may require reimbursement from a development authority for actual expenses related to administration of the authority's TIF districts. Reimbursement may be required by February 15 following the year in which the expenses were incurred.
To learn more, review the TIF article on the OSA website.
3. Released: 2024 TIF Annual Legislative Report
Last week, State Auditor Julie Blaha released the Tax Increment Financing (TIF) Legislative Report. The Report summarizes 2024 activity reported in 2025 by 373 development authorities for 1,657 districts.
4. Relief Associations: Fire Chief Service Credit Certification
Chiefs of fire departments with an affiliated fire relief association are required to certify annually, by March 31, service credit information for each active volunteer and paid on-call firefighter. The certification is provided to an officer of the relief association and to the municipal clerk or clerk-treasurer of the largest municipality in population served by the fire department.
The fire chief must also provide to each active firefighter notification of the amount of service credit rendered by the firefighter for the previous calendar year. The service credit notification must be provided to the firefighter 21 days prior to its certification to the relief association and municipality, along with a description of the process and deadlines for the firefighter to challenge the fire chief’s determination.
See our Statement of Position on Service Credit Determinations and our Pension Topics page on Fire Chief Certification Reminders for more information.
6. 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 payment of income, franchise, withholding, and sales and use taxes of the contractor."
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 relevant statute is Minn. Stat. §290.9705. For more information, see Withholding Fact Sheet 12, Surety Deposits for Out-of-State Construction Contractors, which can be found on the Minnesota Department of Revenue website.
The full Avoiding Pitfall is available on the OSA website.
7. Deadlines
2025 Law Enforcement Agency Asset Forfeiture Reporting by February 27, 2026
Remember to report all forfeitures (pursued under state and federal law) with a 2025 final disposition to the OSA by February 27, 2026. Final disposition is when an action has been taken on the property (i.e., vehicle is sold, cash is distributed, property is returned to owner, etc.). Reporting must be done using the online reporting tool available in SAFES.
Instructions for the Forfeiture Incident Reporting form are available on the OSA website.
If your agency had no forfeitures with a 2025 final disposition, you’ll still need to log in to SAFES, select the Forms tab, then the 2025 tab, and select the button labeled "I have not disposed or forfeited any property in 2025” by February 27, 2026. Entities with forfeitures to report for the year 2025 should NOT check this box.
If you haven't used SAFES in the past and need a username and password, email your contact information including: Name, title, entity mailing address and phone number to SAFES@osa.state.mn.us.
If you have questions or need assistance completing the form, contact Research Analyst Intermediate Christy John at (651) 297-3681 or email Christy.John@osa.state.mn.us.
2025 Annual Forfeiture Expenditures Reporting by February 27, 2026
Law enforcement agencies and prosecuting authorities, remember to report expenditure of forfeited property proceeds, including proceeds received through state and federal forfeiture law to the OSA by February 27, 2026.
Instructions for the Forfeiture Expenditures form are available on the OSA website. Reporting must be done using the online reporting tool available in SAFES.
If you haven't used SAFES in the past and need a username and password, email your contact information including: Name, title, entity mailing address and phone number to SAFES@osa.state.mn.us.
If you have questions or need assistance completing the form, contact Research Analyst Intermediate Christy John at (651) 297-3681 or email Christy.John@osa.state.mn.us.