Porter County, Indiana's, method for determining property values is riddled with errors.
That's according to an independent report commissioned by the Valparaiso City Council.
Problems in the tax system are causing headaches for the city of Valparaiso, which faces a nearly $900,000 budget shortfall.
City Administrator Bill Hanna says the city is addressing the errors, but there are other problems.
He says Valparaiso is not getting all the property taxes that it's due. And it's also paying out big time.
"To a greater extent, the other major cause is the repayment of tax appeals by property owners that are being paid in one year that cover three years worth of appeals," he says.
Hanna says the shortfall will not affect city services for residents.
The city is appealing to state lawmakers for permission to increase its property tax levy.