2 Solar Installers Sue State of Arizona For Imposing Industry-Crippling Property Tax

Two solar panel installers filed a lawsuit against the Arizona Department of Revenue (ADOR) this week charging that the state is illegally imposing a property tax on residents who lease solar energy systems.

In April 2013, ADOR reviewed a 2009 law exempting property owners from an additional solar property tax so long as they own the panels on their home or business. Panel lessees shouldn’t be granted the same tax break, ADOR ruled. Now, SolarCity and Sunrun believe the department’s review of the law is not only illegal but crippling to the industry’s growth in Arizona.