Marshfield (Wis.) Clinic filed a lawsuit against the city of Eau Claire July 17, claiming the city's 2023 property tax assessments on its properties are unlawful, ABC affiliate WQOW reported. The health system is seeking to recuperate around $1.1 million in property taxes it previously paid.
Marshfield Clinic states because its properties in Eau Claire are benevolent facilities, they are tax exempt under Wisconsin law. In the complaint, cited by WQOW, the health system states that its facilities in the city, including a hospital, were used as benevolent facilities at all relevant times, "devoted primarily to the diagnosis, treatment, or care of the sick, injured, or disabled."
In June, Mayo Clinic Health System's Northwest Wisconsin region also sued the city of Eau Claire over what it claims were unlawful property taxes assessed at seven of its properties in the region, which include parking lots. In responding to that complaint, city attorney Stephen Nick told local news outlets the exemptions for nonprofit hospitals apply only to hospital portions, not medical offices.
Marshfield's lawsuit states the city assessed its properties at nearly $62 million for the 2023 tax year on the basis that the properties were not tax exempt. The system is seeking a refund claim to recover the taxes paid.
A Marshfield Clinic spokesperson shared the following statement with Becker's:
"We’ve been a proud partner in the Eau Claire community for more than 30 years, where thousands of our employees have lived, worked and recreated. We're dedicated to seeing the community thrive, paying millions of dollars in property taxes and providing support for Eau Claire area businesses and community organizations. We are a strong economic driver for the city and are committed to continuing to provide healthcare to the Eau Claire area. We've had a positive relationship with the city and remain hopeful that we can work together to resolve any disagreements."
Becker's has reached out to the city of Eau Claire's attorney's office and will update the report if more information becomes available.