OPINION
TOCI, Judge.
During the tax years 1984 through 1988, Arizona's income tax laws exempted from income taxation 100% of state, county, and municipal retirement benefits paid to retired employees of those political entities, while exempting only the first $2,500 of federal retirement benefits paid to retired federal employees.
On March 28, 1989, the United States Supreme Court, in Davis v. Michigan Dep't of Treasury,
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