PHOENIX — Solar companies are asking an Arizona court to overturn state
tax officials’ decision that property taxes must be paid on leased rooftop
panels that produce electricity.
SolarCity Corp. and Sunrun Inc. filed a lawsuit Monday against the state
Department of Revenue’s 2013 decision that leased panels don’t get an exemption
that applies to panels owned by homeowners or businesses.
The department’s decision said the homeowners’ leased panels are subject to
taxes like renewable energy generation equipment owned by utilities.
If upheld, the department’s decision would subject homeowners with leased
panels to property taxes because the leases have provisions passing any taxes to
The leasing companies said they’re being incorrectly treated as electricity
generators, not leasing companies.
Department spokesman Sean Laux said he cannot immediately comment on the suit.