By Ryan Randazzo | The Arizona Republic
Companies that offer solar leases are suing the Arizona Department of Revenue over its decision last year to tax leased solar panels, which could cost thousands of solar users hundreds or thousands of dollars a year and crush the local solar market.
Solar panels in Arizona that homeowners and businesses own are exempt from such taxes. The leasing companies assumed the same exemption applied to them, but after a review, the Revenue Department last year wrote an interpretation that the leased panels did not qualify for the exemption.