Minnesota § 290.9705 - SURETY DEPOSITS REQUIRED FOR CONSTRUCTION CONTRACTS
Full text of Minnesota Minnesota Statutes § 290.9705 — SURETY DEPOSITS REQUIRED FOR CONSTRUCTION CONTRACTS, with citation guidance and answers to common questions.
§ 290.9705. SURETY DEPOSITS REQUIRED FOR CONSTRUCTION CONTRACTS
Subdivision 1.Withholding of payments to out-of-state contractors.
(a) In this section, "person" means a person, corporation, or cooperative, the state of Minnesota and its political subdivisions, and a city, county, and school district in Minnesota.
(b) A person who in the regular course of business is hiring, contracting, or having a contract with a nonresident person or a corporation or cooperative created or organized outside Minnesota, to perform construction work in Minnesota, shall deduct and withhold eight percent of payments made to the contractor if the value of the contract exceeds $50,000.
Subd. 2.
[Repealed, 1990 c 480 art 1 s 45]
Subd. 3.Waiver of withholding.
The conditions in subdivision 1 may be waived by the commissioner if (1) the contractor gives the commissioner a cash surety or a bond, secured by an insurance company licensed by Minnesota, conditioned that the contractor will comply with all applicable provisions of this chapter and chapter 297A, or (2) the contractor has done construction work in Minnesota at any time during the three calendar years prior to entering the contract and has fully complied with all the provisions of this chapter and chapter 297A for the three prior years.
Subd. 4.Deposits used as surety for compliance with income and sales tax provisions.
The amounts deposited with the commissioner under subdivision 1 are considered a surety to guarantee payment of income, franchise, withholding, and sales and use taxes of the contractor. The commissioner shall retain the money deposited until the commissioner determines the contractor's liability for state income, franchise, sales and use taxes, and taxes withheld under section 290.92.
History:
1989 c 28 s 22; 1990 c 480 art 1 s 35; 1Sp2005 c 3 art 3 s 15; 2013 c 143 art 15 s 11; 2023 c 25 s 160; 2023 c 64 art 16 s 4
Official Publication of the State of Minnesota
Revisor of Statutes
Source: official Minnesota text · Last verified 2026-08-27
Frequently Asked Questions About Minnesota § 290.9705
What does Minnesota Statutes § 290.9705 cover?
Section 290.9705 ("SURETY DEPOSITS REQUIRED FOR CONSTRUCTION CONTRACTS") is part of the Minnesota Statutes, the codified statutory law of Minnesota. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Minnesota § 290.9705?
A common citation format is "Minnesota Statutes § 290.9705" (Minnesota). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Minnesota law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Minnesota official source linked on this page or consult a licensed Minnesota attorney.
How does Minnesota § 290.9705 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Minnesota can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Minnesota.