Good morning and welcome to Monday. CHARLENE NELSON, a North Dakota municipal judge, knows what Gov. RON DESANTIS is up against if he tries to push through a Florida ballot measure to abolish property taxes. She’s been at the forefront of the fight in her state for more than 15 years. Twice now — in 2012 and again in 2024 — voters resoundingly rejected a plan to nix property taxes, though it did better the second time. It faced opposition from the state Chamber of Commerce, North Dakota AARP and national teachers' unions. “In order to win this, we're never going to win it with money, because we just don't have the money,” Nelson said. “So, we have to wait until there's enough people that are angry enough.” North Dakota voters had been worried about what might be at stake under a property tax repeal, Nelson acknowledged, citing the possibility of lost investments in projects like jails, city halls and libraries — even though she said the taxes represented “more money taken out of the family budget.” Before turning to ballot initiatives, Nelson and about 30 other people held numerous meetings over 18 months at a truck stop cafe to brainstorm ways to reduce property taxes. Residents were crushed by the taxes and feared losing their homes because they couldn’t pay. “Finally, one of the men in the room just spoke up and said, ‘Well, how about if we just eliminate the whole thing?’ And there was literally a stunned silence for probably 20 to 30 seconds, no one said a thing. And then we’re like, ‘Well, yeah! Why not?’” Their meetings turned into study of the possibility — and they published a book. Nelson said the issue “sparked a lot of debate” and she put 8,000 miles on her car hosting public forums. After the first referendum failed, North Dakota’s Legislature injected more state dollars into local governments. Property taxes dropped drastically, but a sharp increase in home values a few years later wiped out the difference. Nelson’s husband pushed his retirement two years later than planned because they were worried about paying the tax. In Florida, property taxes bring in an estimated $50 billion for local governments. Nelson favors increasing local sales taxes as a solution to make up lost revenue. But she also encouraged Florida policymakers to analyze the tax’s administrative costs, what businesses might be newly attracted to the state, and the extent to which people might have more disposable income — thereby generating more sales tax revenue. “Instead of pinching pennies,” she said, “Now they can get the ballet lessons for their child, or they can buy the new car they couldn't afford before.” Florida and North Dakota, of course, have key differences. If any state were to abolish property taxes, Nelson argues, North Dakota is the “best situated.” It saw a state revenue boom from its oil industry, and also has a state income tax. As for Florida, it has property discounts North Dakota doesn’t have, like homestead exemptions, limits on a home’s assessed value and tax portability. There are cultural differences, too. Nelson described her state’s mindset as “timid” and fearful of change — unlike DeSantis’ push to make Florida first in many policy areas. The North Dakota ballot measure was opposed in 2024 by former Gov. DOUG BURGUM — the 2024 presidential candidate, VP shortlister, and now Interior secretary — and in 2012 by then-Gov. JACK DALRYMPLE. DeSantis, Nelson insisted, “has the political power to make this happen.” Nelson said she’s hopeful that if Florida were to be successful, it’ll help her state, too. She gushed that she would “love” to come testify here on the issue, “especially this time of year” when she said her thermometer read 26 degrees. Her advice to the governor? “Use your political capital.” WHERE’S RON? Gov. DeSantis has a 10 a.m. press conference in Winter Haven with Florida Commerce Secretary Alex Kelly. Have a tip, story, suggestion, birthday, anniversary, new job, or any other nugget that Playbook should look at? Get in touch at: kleonard@politico.com.
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