The Property Tax Conundrum

Shebar says homeowners with "five-figure incomes and five-figure tax bills" illustrate the regressive and unfair nature of property taxes. She and her supporters want them eliminated but aren't saying what should replace them. On its Web site, the group says finding an alternative to property taxes is "not our job."

Florida TaxWatch analyst Kurt Wenner says rapid real estate appreciation and rising property tax bills in his state have exposed deep flaws in a program meant to solve the tax affordability issue for many homeowners.

Starting in 1995, a measure known as "Save Our Homes" capped annual property assessment increases at 3% for primary residences. As a result of the law, billions of dollars in tax burden have shifted over the past decade from longtime Florida homeowners to newcomers and owners of commercial and rental property. Today, next-door neighbors have drastically different tax bills, landlords are passing off tax increases on tenants, and beneficiaries of "Save Our Homes" are finding themselves trapped in houses they no longer want or need because their savings are not portable.

Lawmakers in the state legislature have responded with plans to cut everyone's property taxes or even eliminate them for primary residences, while raising the state sales tax from 6% to 8.5%, making it the highest in the nation.