P-J file photo The Target store in West Ellicott is pictured.

Target has discontinued its property assessment grievance against the town of Ellicott.

The company had been asking state Supreme Court Justice Grace Hanlon to cut the tax assessment on Target’s 975 Fairmount Ave., property from $3.4 million to $1.7 million while asking the court to change the assessment for the 2023-24, 2024-25 and 2025-26 tax years. It was the second time Target has taken a tax assessment decrease to court in the past few years.

Target Corporation had challenged the 2022 assessment on the former K-Mart parcel of $3.4 million. Negotiations between the attorneys resulted in a settlement that left the assessment unchanged, according to the order signed in late August 2023 by Hanlon. The $3.4 million assessment was also the agreed upon assessment for the property for 2023-24 and 2024-25 as part of the court settlement.

Ellicott had agreed to approve a 485-B tax exemption starting with the 2025 assessment on the building that will phase in 50% of any assessment increase over the original $3.4 million tax assessment due to physical changes to the property. Section 485-b of the state Real Property Tax Law provides the basis for a 50% reduction of the increase in assessed value due to certain qualifying new construction, alterations, installations or improvements for the purpose of commercial, business or industrial activity.

According to a 2022 court filing by Marilyn Fiore-Lehman, attorney for the town of Ellicott in the case, Target purchased the building for $3.15 million and had obtained a building permit to make improvements estimated at $4.5 million.