2023 New York Laws › RPT - Real Property Tax › Article 4 - Exemptions › Title 2-A - Railroad Real Property of Intrastate Railroad Companies › 489-V - Capital Improvements to Railroad Property.

§ 489-v. Capital improvements to railroad property. 1. As used in this
section:
(a) "Completed capital project" shall mean a capital project which has
been  certified by the commissioner to be completed in accordance with a
capital project proposal approved by the commissioner.
(b) "Capital project proposal" shall mean a proposal,  prepared  by  a
railroad  company  and submitted to the commissioner, which sets forth a
proposed capital project. Such proposal shall include a  description  of
the proposed capital project and conditions relating to railroad tracks,
roadbeds,  bridge  and structural improvements, improvements to railroad
yards,  switches,  sidings,   or   other   facilities,   signal   system
improvements,  or  other  railroad projects that improve the efficiency,
capacity, or safety  of  railroad  facilities.  The  proposal  shall  be
reviewed  by  the commissioner and shall be approved if the commissioner
determines that the proposed project is consistent with  the  provisions
of   paragraph  (e)  of  this  subdivision  and  rules  and  regulations
prescribed by the department pursuant to this section.  Capital  project
proposals  that  have  been  approved by the commissioner may be amended
with the approval of the commissioner.
(c) "Commissioner" shall mean the commissioner of the New  York  state
department of transportation.
(d)   "Department"  shall  mean  the  New  York  state  department  of
transportation.
(e) "Capital project" shall mean a construction  project  which  shall
modify  railroad  facilities  to  substantially  improve the efficiency,
capacity, or safety of railroad freight or passenger transportation,  as
determined by the commissioner, in one or more of the following manners:
(i)   a   substantial   enhancement   in  rail  freight  or  passenger
transportation performance, such as upgrading the class of the  railroad
track  as track classes are defined in the track safety standards of the
United States department of transportation;
(ii) the construction of significant new facilities for  rail  freight
or  passenger  transportation,  such as the construction of new railroad
lines, additional tracks  along  existing  lines,  sidings,  structures,
yards,  stations, signal systems or switching facilities, and intermodal
facilities, including, but not limited to,  automotive,  bulk  transfer,
trailer on flatcar, container on flatcar, and reload facilities; and
(iii)  major  renovations  to  or expansions of components of railroad
infrastructure, such as the reconstruction of bridges or the increase in
bridge capacity, the expansion of railroad  yards,  or  the  substantial
improvement of the technology or safety of signal systems.
2.  (a)  A  railroad  company  shall  propose a capital project to the
commissioner for approval under this section on forms prescribed by  the
department.  The  commissioner  shall  approve capital project proposals
that are consistent with  the  terms  of  this  section  and  rules  and
regulations  prescribed by the department. The commissioner shall notify
the submitting railroad company within  thirty  days  of  receipt  of  a
proposal  whether  or  not the commissioner considers the proposal to be
consistent with the definition of a capital  project  as  set  forth  in
paragraph (e) of subdivision one of this section.
(b)  Upon  a  railroad  company's  completion of the construction of a
capital project, such railroad  company  may  make  application  to  the
commissioner for certification under this section on forms prescribed by
the  department. If the commissioner finds that such capital project was
completed in accordance with, and is in  compliance  with,  an  approved
capital  project  proposal,  the commissioner is authorized to forward a
certificate of approval to the property owner thereof, with the approved
capital project proposal for the completed capital project.
(c) The department is hereby authorized to adopt and promulgate  rules
and  regulations  necessary for the implementation of this section. Such
regulations may relate to the nature and  content  of  eligible  capital
projects, approved capital project proposals, certifications and notices
issued  by  the  commissioner, and completed capital projects. Rules and
regulations relating to capital projects and  approved  capital  project
proposals   or   amendments  thereto  may  provide  for  alternative  or
contingent terms based on the scope and nature of the capital project.
(d) This section  shall  apply  to  any  certified  completed  capital
project.    The  obligations  and benefits of this section shall devolve
upon the property owner and the heirs, successors, and assigns  thereof,
as the case may be.
3.  (a)  Whenever  any  alteration  of  a completed capital project is
proposed during the period of exemption pursuant to section four hundred
eighty-nine-d or four hundred eighty-nine-dd of this article in a manner
that would reduce the utility of  the  completed  capital  project,  the
property  owner  shall  give  not  less  than  sixty  days notice to the
commissioner in a manner and upon such form as shall  be  prescribed  by
the department. Such notice shall include information as to the location
and nature of such proposed alteration.
(b)  The  commissioner  shall, in response to a notice from a property
owner or on the commissioner's own initiative, after notice and hearing,
issue a notice of revocation  of  the  certificate  of  approval  issued
pursuant  to this section for any completed capital project whenever the
commissioner finds that:
(i) any completed capital project or portion thereof is not maintained
or is converted to a use which precludes the use of the improvement  for
common carrier railroad use; or
(ii)  the property owner fails to give notice of a proposed alteration
of such completed capital project pursuant  to  paragraph  (a)  of  this
subdivision; or
(iii)  the  property  owner  fails  to  comply  with  the terms of the
approved capital project proposal for such improved property.
4. Any determination made pursuant to this section  shall  be  binding
upon the commissioner in any calculation pursuant to this title or title
two-B of this article.