SULT, Judge.
The City of Phoenix (the city) appeals from a tax court judgment awarding $16,807 in attorneys' fees to taxpayer Paper Distributors of Arizona, Inc., (the taxpayer) pursuant to Arizona Revised Statutes Annotated ("A.R.S.") section 12-348(B) (1992). The Arizona Department of Revenue (DOR) has been granted leave to file a brief as amicus curiae. The city's appeal raises two questions:
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