Lisbon has written off $165,000 in taxes connected to the former Knight Celotex property.

The town has given a tax abatement to the current owners, Swift Demolition Inc., of New Castle, Del., reducing outstanding tax connected to the property at 743 Lisbon St., Lisbon Falls, for 2008, 2009 and 2010. 

Town Manager Stephen Eldridge said the current owner requested the abatement because Swift Demolition thought the property or its contents were overvalued by town assessment.

“If you’ve been by the Knight Celotex building in the last few years, you can see it’s basically being torn down. It did not have the value anymore that had been on the books,” Eldridge said.

The town agreed to reduce the taxes earlier this month. It’s unclear whether the taxes were for personal property, such as equipment, or for the property itself.

Knight Celotex, which manufactured fiberboard, filed for bankruptcy and shut down in 2009. It was owned by James A. Knight at the time. The property has had other owners since. 

The current tax assessment on the buildings and land, which includes three lots, is $552,000. Lisbon’s townwide valuation stands at $453 million.