There are indeed global variables in javascript. You can learn more about scopes, which are helpful in this situation.
Your code could look like this:
<script>
var count = 1;
function setColor(btn, color) {
var property = document.getElementById(btn);
if (count == 0) {
property.style.backgroundColor = "#FFFFFF"
count = 1;
}
else {
property.style.backgroundColor = "#7FFF00"
count = 0;
}
}
</script>
Hope this helps.