Appeals court says no property tax for rooftop solar panels - Tucson News Now

Appeals court says no property tax for rooftop solar panels

PHOENIX (AP) -

An Arizona Court of Appeals ruling says companies that lease rooftop solar systems to homeowners can't be charged property tax for the systems.

The ruling issued Thursday upholds a lower court judgment that said the state Department of Revenue was wrong when it determined in 2013 that leased rooftop solar systems should be subject to property tax.

Leasing companies SolarCity and SunRun sued the department. A lower court ruled in their favor but also decided that the underlying state law allowing home systems not to be taxed violated the state Constitution. The court said counties could tax both homeowner owned and leased systems.

The appeals court ruling said the tax court judge was wrong when he decided state law that places no added value on solar systems was unconstitutional.

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