NY Real Prop Tax L § 489-G (2021)
2021 New York Laws RPT - Real Property Tax Article 4 - Exemptions Title 2-A - Railroad Real Property of Intrastate Railroad Companies 489-G - System Reproduction Cost.

§  489-g. System reproduction cost. 1. The system reproduction cost of each railroad company shall be determined by ascertaining so far as  may be  practicable for the property of each railroad company used by it for transportation purposes and owned by or leased to  it  constituting  the railroad  system:  (a) the cost of reproduction new less depreciation of road and equipment, (b) the value of land and rights, including value of rights in land in,  above  and  under  any  public  street,  highway  or parkway,  and  (c)  working  capital  including  material  and supplies, provided, however, that if on the effective date of this title the major portion of the property of a railroad company  and  the  management  and control of such company are located outside of the territorial limits of the United States, the system reproduction cost of such railroad company shall  consist of the property of such company located within the United States.   2. In making determinations under this  section  as  to  the  property constituting  the  railroad  system, the commissioner shall classify the property  of  each  railroad  company  as  between   transportation   or non-transportation so far as may be practicable.   3.  In  ascertaining  depreciation  of  property  under  this section, consideration may be given to physical condition, average service  lives of  groups  of  property  and  other  factors, which, however, shall not include earnings.   4. As used in this section, the term "value of land" means  the  value of  similar  land in the immediate vicinity used for other than railroad transportation purposes, and the term "value of rights in land in, above and under any public street, highway or parkway" means  ten  percent  of the value of land in the immediate vicinity used for other than railroad transportation purposes.   5. In making determinations under this section, the commissioner shall consider the information contained in the publication entitled "Elements of  Value of Property Used in Common Carrier Service" then most recently issued or made available by the bureau of  accounts,  cost  finding  and valuation  of  the  interstate commerce commission. The commissioner may consider information available from the commissioner  of  transportation or other regulatory agency having jurisdiction over the property of such railroad  company,  as well as information available from other sources, including  reports   required   pursuant   to   section   four   hundred eighty-nine-q,  and  such  other  information  on  the subject as may be available to it.   6. In determining a system reproduction cost for purposes of  railroad ceilings  determined  for  assessment  rolls  filed  on or after January first, two thousand three, grading shall be deemed a depreciable  asset. The  allowance  for grading in place shall be eighteen percent per annum but shall not exceed ninety percent.   7. In determining a system reproduction cost for purposes of  railroad ceilings  determined  for  assessment  rolls  filed  on or after January first, two thousand three, the commissioner shall not include  a  factor for  any  construction  overhead  in  its  calculation,  nor  shall such overhead costs be included for any new construction begun  on  or  after the effective date of this subdivision.   8.  (a)  In  determining  a  system  reproduction cost for purposes of railroad ceilings established for assessment rolls filed in two thousand three, the  commissioner  shall  allow  for  increased  depreciation  of railroad  track. For high speed/high tonnage track and medium speed/high tonnage track, whether main track or side track, depreciation  shall  be increased  to  seventy-five percent. For low speed/medium tonnage track, whether main track or side track, depreciation  shall  be  increased  to  eighty-five percent. For low speed/low tonnage track, whether main track or side track, depreciation shall be increased to ninety percent.  (b)  Such  increased  depreciation  pursuant  to paragraph (a) of this subdivision shall be  granted  for  railroad  ceilings  established  for assessment  rolls  filed  in  two thousand four and thereafter only upon application of a railroad company. Any increased depreciation  shall  be granted  to  all  the  tracks  owned  by  the railroad in this state not otherwise exempt from inclusion in the calculation of railroad ceilings. Such grant of increased depreciation shall continue for  ten  years  and may be approved for subsequent periods of ten years upon application and compliance  with  the  standards established by rule and regulation. The commissioner   shall,   in   consultation   with   the   department   of transportation  and  the  division  of the budget, establish by rule and regulation the schedules for increased depreciation  and  standards  for improved  service  that  must  be met in order for a railroad to receive such  increased  depreciation  for  railroad  ceilings  established  for assessment  rolls  filed in two thousand four and thereafter. A railroad company that has failed to file an application or  failed  to  meet  the standards  for  improved  services  contained  in  any  such  rules  and regulations of the commissioner prior to the establishment  of  railroad ceilings  for  assessment rolls filed in two thousand four shall receive one-half the benefit for increased depreciation that such company  would have received had such application been made and such standards been met in  a  timely  fashion.  The standards for increased depreciation may be based upon increased tonnage,  increased  level  of  passenger  service, increased   number   of   passenger   trains   and/or  improved  on-time performance, increased average speed, and any other  factors  indicating improved  rail  service  as  the  commissioner  and  the  department  of transportation shall specify.