The Property Tax Conundrum

These proposals are highly controversial. County and local governments worry that they might lose revenue and be forced to cut vital services. Groups such as Florida TaxWatch say that a massive sales tax increase could end up damaging the state economy. Still, almost everyone agrees that residents need some form of tax relief. "This is a very complex situation with no easy answers," Wenner says.

Some analysts suggest the battle over property taxes may obscure a deeper problem. The Tax Foundation's Prante points out any plan to curb property taxes will lead to an increase in some other form of taxation -- so long as spending levels continue to climb. "There is no such thing as a free lunch," Prante says.

Coming up next: Avoid new-home defects.