Blog: Capital Focus

Reworking the oil tax

Published Wednesday, February 6, 2008

I asked Gov. Sarah Palin for her thoughts yesterday on Sen. Charlie Huggins' bill making changes to the recently changed oil production tax.

"Nothing's changed on our part," she said. "We don't support changing anything in ACES at this point."

Palin said good work went into shaping the "full package" that became ACES. Changing the tax again so quickly would just add to the instability (in tax systems) everyone in the state would like to avoid.

"We were satisfied at the end of the day with the Legislature's hard work on that, and just a couple months later to see a legislator trying to undo that is perplexing," she said.

Palin's original bill didn't include either of the two provisions Huggins is trying to get rid of -- a cap on operating cost deductions at certain fields and retroactivity of the tax.

When asked whether she would veto Huggins' bill if it passed, Palin said she didn't think the bill would pass.

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