Solar panel companies sue Revenue Department over property tax hike

rooftop-solar-638x408By Evan Wyloge  | Arizona Capitol Times

Two solar panel companies filed a lawsuit Monday alleging the Arizona Department of Revenue acted illegally last year by issuing a new interpretation of existing property tax law which stripped an exemption from homeowners’ leased solar panels.

The interpretation, which was issued in April 2013, declared that rooftop solar panels must be taxed like renewable energy generation equipment owned by large and medium-sized utilities.

SolarCity and SunRun are asking the Arizona Tax Court to issue a declaratory judgment reversing the DOR interpretation.

If the legal challenge fails, homeowners who lease solar panels from the two companies will be forced to pay about $150 in property tax this year (for an averaged sized solar panel installation), because the lease arrangements contain provisions passing any taxes to the lessor.

Continued: 

Related: Solar companies sue to stop property taxes on leased rooftop panels 

SolarCity, Sunrun sue Arizona Department of Revenue over solar panel tax assessment 

How Arizona’s property tax ruling will affect state solar pricesRooftop solar no longer a good deal in Arizona 

Companies file lawsuit over Arizona property taxes on solar panels

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