ARIZONA IMPOSES PROPERTY TAX ON LEASED SOLAR

Leased solar panels are facing property taxes

Ryan Randazzo, April 26, 2014 (Arizona Republic)

“Thousands of Arizonans who lease solar panels could start paying property taxes on those solar panels next year because of a new interpretation of state law…Major rooftop-solar companies such as Sunrun Inc. and SolarCity Corp. fought but failed to change the interpretation through a proposal at the Legislature…Solar leasing companies, which control the majority of new rooftop installations in Arizona, vow to fight the taxes in court if necessary to prevent their [residential] customers from paying an estimated $152 a year in taxes…Schools and non-profit groups also often lease solar panels because they can't use the federal tax credits that make solar attractive. The tax liability of larger arrays can run thousands of dollars annually…People who own household solar panels are exempted from property taxes…[Leasors and leasees] assumed the same exemption applied…[But] the Arizona Department of Revenue last year interpreted that law to mean…[leased panels] are more like merchant power plants…[The solar industry] now plans to challenge the Department of Revenue…[Solar advocates say Gov. (Jan) Brewer must interpret the law’s ambiguity in defense of Arizona taxpayers but] Brewer's office declined to comment…APS favors the tax [and an aligned group says there is no ambiguity]…” click here for more

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