A faulty computer entry led to a home being valued at $400 million when it reality the home cost approximately $120,000. This error created major problems for Indiana's Porter County last week when the error was unmasked.

"We'd sell it for 5 percent of that!" said Dennis Charnetzky, the homeowner, in an interview with The Chicago Tribune. "At least I don't owe $8 million in taxes."

According to county officials, a real estate agent or a title company employee changed the information contained in the computer record in October 2004. After mis-keying information, the unknown user is believed to have opened a restricted screen, and, the county alleges, then changed the value from $120,000 to $400 million. The inflated, false value of the property remained in the system and the bill for the property tax catapulted from $1,500 to the upper seven figures.

Although the mis-indexed error was spotted twice and an enhancement was made to block outside access from the system, the $400 million valuation remained in the county's system. The bank that held the home's escrow account received a tax bill for $8 million and informed the county of the discrepancy in May 2005. The county quickly uncovered the problem, according to Jim Murphy, the treasurer of Porter County.

"We thought the problem had been fixed," Murphy said. "It had not been. And, that's when the poop hit the fan."

Based on the original figures, the county was expecting to collect taxes on this startling new property while other residents and community entities were asked to pay a little less. The original budgets for several systems were based on the incorrect findings. Thus, numerous taxing districts from the city of Valparaiso, the county and the Valparaiso schools now find themselves in the position of having to return to the county an advance of more than $3 million.

"I feel bad for the city for not getting all the property taxes they deserve," added Charnetzky. "It really blows my mind when you hear about stupid stuff like that happening."

© 2005, Source of Title

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