Alaska: Palin Owes Per Diem Tax.

Gov. Sarah Palin must pay back taxes on nearly $18,000 in expenses she charged the state for living in her home outside Anchorage instead of in the state capital, officials said. A review of state policy and federal tax laws determined the per diem payments should be treated as income, the Department of Administration commissioner said. The charges came to light after Ms. Palin was named John McCain's running mate on the Republican presidential ticket. Ms. Palin had collected nearly $17,000 in payments before she joined the ticket. The expenses were paid for more than 300 nights she slept at home in Wasilla and commuted 40 miles to her Anchorage office instead of living in the Governor's Mansion in Juneau, 600 miles away. [ABSTRACT FROM PUBLISHER]