Arizona May Impose Unusual New Tax On Customers Who Lease Solar Panels
A new interpretation of state law in Arizona could force customers to pay property taxes on leased solar panels. In a state with an estimated 20,000 solar customers and 85 percent of new solar installations being leased systems, the implications of an extra charge are tremendous. The new tax could result in an additional $152 per year for a residential solar array and even more for larger installations, the Arizona Republic reported. What’s more, the tax would apply to both new and existing customers.
“This is an odd way to try to win over a conservative state — imposing higher or more taxes,” Susan Glick, senior manager for public policy at Sunrun, told ThinkProgress. “Across the country there’s overwhelming support for rooftop solar and notable conservative support for rooftop solar,” she said, and Arizona is no exception.
Major rooftop solar companies like Sunrun and SolarCity are staunchly opposed to the prospect of a property tax, particularly considering “more than nine out of every ten of our systems are leased,” said Will Craven, senior public affairs manager for SolarCity.
Previously, both owned and leased solar arrays were exempt from state property taxes but an Arizona Department of Revenue review last year changed that by determining “leased panels are more like merchant power plants and should pay property taxes like them,” according to the Republic.
So, who would support the effort to charge solar customers more money? Solar advocates in Arizona point to the state’s largest utility, Arizona Public Service Company (APS).
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http://thinkprogress.org/climate/2014/04/30/3432172/arizona-solar-property-tax/
= new reply since forum marked as read
that Arizonans will convert to solar in ever increasing numbers, reducing their profit.
I'm so glad I'm not an APS customer....
