MARSHFIELD, WI (OnFocus) – In a recent council meeting on March 12th, a longstanding taxation dispute between the city and a local clinic took center stage. The clinic sought tax exemption for certain spaces within its premises, posing a potential annual revenue loss of $1.1 million for the city. After three years of deliberation, both parties reached a compromise.
The crux of the issue was whether the clinic’s facilities qualified for tax exemption under the state’s hospital exemption. This led to debates over the nature of their operations and how they aligned with tax regulations.
After thorough discussions and legal consultations, a compromise was reached. The city granted the clinic a partial tax exemption for five years, providing relief while ensuring fiscal responsibility.
For 2024 taxes collected in 2025, this will mean the city has to refund the Clinic around $530,000 total across all taxing jurisdictions (county, school district, tech college).
After getting portions refunded from the other jurisdictions, the net refund the city itself will have to pay is around $250,000 if tax rates remain the same.
The compromise avoids having to go to court and allows the city and Clinic to move forward with a cooperative relationship, as the Clinic is a major employer and taxpayer in the city.
So in summary, the Clinic gets a 5-year partial tax exemption in exchange for not pursuing full exemption through the courts, with the city refunding around $250,000 for the first year as part of the compromise.
City Administrator Steve Barg addressed the resolution in a recent episode of Council Update on Marshfield Broadcasting, stating:
“Maybe neither one of us is fully happy, but we feel like it was a resolution that was somewhat equitable. And I hope this means that going forward, we have a good relationship. We want to have a good rapport and coordinate and cooperate with a clinic where we can now move forward.”
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