Arizona high court to rule on taxes for leased rooftop solar

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(Source: 3TV/CBS 5) (Source: 3TV/CBS 5)

The Arizona Supreme Court is set to decide if rooftop solar systems leased to homeowners are subject to state property tax or are exempt from taxes just like rooftop systems owned by residents.

The ruling expected Friday should end a battle between the state Department of Revenue and solar leasing companies SunRun and SolarCity that began in 2013. That's when the Department of Revenue decided that leased systems were subject to property taxes because they are really solar company-owned power generating facilities.

The companies sued. A Maricopa County judge ruled in their favor, but also decided that the underlying state law allowing home systems to avoid taxes violated the state Constitution. An appeals court ruling last year overturned the portion that declared the exemption unconstitutional.

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