“While we believe the tax assessor incorrectly interpreted the law in establishing our current tax liability, Marshfield Clinic Health System has always been willing to have an open dialogue with the city to identify possible solutions. For example we suggested entering into a PILOT (payment in lieu of taxes), which is an amount to be paid by a nonprofit like MCHS (which has no tax liability) to cover the cost of City services. The City has so far declined these offers, preferring to allow the courts to determine our tax liability. We remain hopeful that both parties will be able work together to resolve any disagreements and are committed to doing so on our end. Despite the outcome of our discussions or the litigation, we anticipate having a positive relationship with the City and open dialogue on what’s best for both the City and the Health System.”
MARSHFIELD, WI (WSAU-WAOW) – Marshfield city officials are waiting on the result of a lawsuit between the city and Marshfield Clinic, which could have a significant impact on the city’s tax base.
Marshfield Clinic claims that it should be taxed as a hospital rather than a clinic, but the city does not see it that way. The final decision is currently in the hands of a judge.
If the city loses the lawsuit, its $23.5 million budget would have to be cut by $1.1 million.
The city is looking ahead to possible resolutions in the case that they do lose the case.
“We would likely look at a combination of either tax increases or budget cuts, but that’s a lot of money. So if it were entirely tax increases, that would be roughly a 8% increase in the city’s tax rate,” said City Administrator, Steve Barg.
There is three possible scenarios for this case.
One is that the city wins the case, and Marshfield Clinic continues to pay taxes as a clinic.
Two is Marshfield Clinic wins and the city will have to find out other ways to make up for that $1.1 million dollar loss.
Three is the court doesn’t decide a winner, and the city will pay a portion of the $1.1 million, but not the full amount.
“First piece is budget cuts, second piece is tax increases, third piece is do they want to look at other sources of revenue,” said Barg.
Those other sources of revenue could include a wheel tax, transportation utility, or storm water utility.
The wheel tax is already implemented in Marathon County, which includes part of Marshfield and those citizens would have to pay both wheel taxes.
The lawsuit itself is still working its way through court, so there’s no word yet or when a decision would be made.
Marshfield Clinic released the following statement to WAOW:
