A house mistakenly valued on the assessment records at $400 million dollars is causing big problems in northwest Indiana. The house in Valparaiso had been valued at just under 122-thousand dollars before the glitch, and usually was assessed a 15-hundred-dollar property tax bill.

County Treasurer Jim Murphy said the home usually carried about $1,500 in property taxes; this year, it was billed $8 million.

The mistake was caught, but somehow the 400 million dollar figure ended up in the calculations for this year's tax bills in Porter County. The city of Valparaiso and the Valparaiso Community School Corp. were asked to return $2.7 million. As a result, the school system has a $200,000 budget shortfall, and the city loses $900,000.

City officials say the error could lead to layoffs and other cost-cutting measures.