By 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.
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