SolarCity, Sunrun take legal action against solar property tax
Jul 2, 2014 - US solar installers SolarCity Corp (NASDAQ:SCTY) and Sunrun Inc filed a lawsuit on Monday against a decision by the Arizona Department of Revenue to require payment of property taxes on leased solar equipment.
The two firms oppose the department’s decision to tax leased solar panels the same way utility-owned power plants are taxed. They claim that their leased panels are used mainly for on-site consumption similar to the systems owned by households, which in turn qualify for a property-tax exemption. The plaintiffs also insist to be treated as leasing companies rather than power generators and sellers.
California-based SolarCity also points out that in 2009 Arizona governor Jan Brewer introduced legislation that states that leased solar systems should not be subject to taxes.
The two solar leasing companies also warned that their clients will be the ones affected by the the department’s decision due to provisions in the lease agreements that pass the taxes to homeowners.