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Arizona Supreme Court Rules (Partially) On Taxes For Leased Solar

Arizona’s highest court said the state can’t charge property taxes on rooftop solar systems that homeowners lease. But the case isn’t over.

Rooftop solar systems are now free from state property taxes whether homeowners own them or lease them, but the decision only covers state property taxes. As to county property taxes, well, that part was sent back to a lower court.

The case stems from 2013, when the state Department of Revenue said the solar company really owns these leased systems, and that makes them subject to property taxes. The solar companies SunRun and SolarCity dispute that.

The Arizona Supreme Court released the ruling Friday morning.

Bret Jaspers was a senior field correspondent at KJZZ from 2017 to 2020.