By Ryan Randazzo | The Republic | azcentral.com
(Rose Law Group original live coverage: )
The solar industry is fighting a bill introduced by Rep. John Allen, R-Scottsdale, that would tax solar panels that are leased by homeowners.
Current Arizona property tax law states that rooftop solar panels used to generate electricity on site for a home or business are not assessed property tax. But the Department of Revenue last year issued a determination that leased solar panels, the fastest growing segment of the industry by far, should be assessed property tax.
The Department of Revenue found the actual owners of those systems are the companies such as SolarCity that offer the leases, or their investors, and they are not using the power “on-site” the same as a customer who buys solar panels for a home or business. The state has not begun billing those solar-panel owners for the taxes owed on panels, but could without a clarification. Two bills were introduced at the Legislature this session to clarify the law.
Allen’s proposal, House Bill 2595, aligns with the Department of Revenue and clarifies that the owners of the solar panels would be assessed taxes, regardless if the electricity is being used on site.
Related: Solar tax hits seniors
If you’d like to discuss energy issues, contact Court Rich, director of Rose Law Group’s Renewable Energy Department at crich@roselawgroup.com
