2023 New York Laws › STF - State Finance › Article 4-A - State Assistance to Local Government › 54-B - State Assistance to Certain Public Corporations in Which Railroad Real Property Is Partially Exempt From Taxation.

*  §  54-b.  State  assistance to certain public corporations in which
railroad real property is partially exempt from taxation. 1.  When  used
in this section, unless otherwise expressly stated:
a.  "Public  corporation"  means a county, city, town, village, school
district, town or county improvement district, district  corporation  or
special  district  in  which  real  property  is  subject to taxation or
special ad valorem levies.
b. "Railroad  company"  means  a  corporation,  joint  stock  company,
association,  partnership, individual or other person which is operating
a railroad system as a common carrier by rail, including but not limited
to a street, surface,  underground  or  elevated  railroad,  whether  as
owner, lessee, mortgagee, trustee, receiver or assignee of railroad real
property,  and to which the provisions of title two-a of article four of
the real property tax law apply as a  result  of  the  exercise  of  the
option  provided  in  section  four  hundred  eighty-nine-v  of the real
property tax law.
c. "Railroad real property" means  the  land,  real  estate  and  real
property (as defined in subdivision twelve of section one hundred two of
the  real property tax law) of a railroad company, which is used by such
railroad company for  transportation  purposes  and  includes  (a)  such
property  leased  to  such  railroad  company, (b) such property used or
occupied by such railroad company, title to which is in the state or  in
any  municipal  corporation  thereof  under  any  of  the grade crossing
elimination acts, and (c) the tangible property of  a  railroad  company
situated upon, under, over or above any street, highway, public place or
public  waters  and  the  value of any franchise, right or permission to
construct, maintain or operate a railroad in, under, over, above, or  on
through, streets, highways or public places.
d.  "Tax"  or  "taxation"  means  an  ad  valorem charge or special ad
valorem levy imposed upon real property by or  on  behalf  of  a  public
corporation.
e.  "Base  fiscal  year"  means  the  last  fiscal  year  of  a public
corporation commencing prior to July first, nineteen hundred fifty-nine;
provided, however, that when a railroad company elects after July first,
nineteen hundred seventy-one to have the provisions of  title  two-A  of
article four of the real property tax law apply, then "base fiscal year"
for  the  purposes  of this section only means the last fiscal year of a
public corporation commencing prior to July first of the year  preceding
the calendar year in which the first railroad ceiling is determined; and
further  provided, however, that when railroad real property is acquired
by a profitable railroad as defined in section one hundred  two  of  the
regional rail reorganization act of nineteen hundred seventy-three, or a
subsidiary  thereof,  from  a  railroad  in  reorganization  as  therein
defined, in connection with or pursuant to a plan of  reorganization  or
restructuring  under or pursuant to the regional rail reorganization act
of nineteen hundred seventy-three, the base fiscal year for purposes  of
this  section  only shall continue to be the base fiscal year applicable
to such property prior to such acquisition.
f.  "Current  fiscal  year"  means  the  fiscal  year  of  the  public
corporation  for  which taxes are levied on the assessment roll affected
by the  railroad  ceiling  on  account  of  which  state  aid  is  being
calculated for the public corporation under this section.
g.  "Change  in  the  level  of  assessment" means the net increase or
decrease in the  assessed  valuation  of  the  taxable  property  on  an
assessment  roll  as  a result of assessing such property at a higher or
lower ratio of full value.
2. State assistance shall be apportioned and paid in  accordance  with
this  section  to each public corporation in the state in which there is

railroad real property which became partially exempt from taxation under
title two-a of article four of the real property tax law prior to  April
first,  nineteen  hundred  seventy-six  and  in  which  the taxes levied
against   railroad  real  property  by  or  on  behalf  of  such  public
corporation for its base  fiscal  year  exceeded  one  hundred  thousand
dollars  ($100,000)  or two per cent of the total amount of taxes levied
against all real property by or on behalf of such public corporation for
its base fiscal year.
3. The chief fiscal officer of a public corporation entitled to  state
assistance  under  this  section  shall, during such fiscal year of such
public corporation commencing on or after July first,  nineteen  hundred
sixty:
a.  Compute  the  total amount of taxes levied by or on behalf of such
public corporation against railroad real property for  the  base  fiscal
year and deduct therefrom the sum of the following two amounts:
(1)  An  amount  equal  to  any  sums  which,  on  or  before December
thirty-first, nineteen  hundred  fifty-nine  shall  have  been  paid  or
credited or determined to be payable to any railroad company by a public
corporation  directly  or  indirectly  on  account of such real property
taxes; and
(2) The total amount of such taxes levied  against  tangible  railroad
real  property retired or no longer used for transportation purposes and
therefore no longer assessable as railroad real property with respect to
the tax levy for the current fiscal year of such public corporation; and
b. Subtract from the amount computed pursuant to paragraph a the total
amount of taxes which would have been levied by or  on  behalf  of  such
public corporation against railroad real property for the current fiscal
year  of  such public corporation if the tax rate for the year preceding
the current fiscal year when adjusted to  reflect  any  changes  in  the
level of assessment had been applied to the railroad ceiling established
for the current fiscal year; provided, however, that if the tax rate for
the base fiscal year of such public corporation when adjusted to reflect
subsequent changes in the level of assessment, exceeded the tax rate for
the  fiscal year preceding the current fiscal year, such higher tax rate
shall be used, and provided further that the amount subtracted  pursuant
to  this  paragraph shall be reduced by the total of any amounts paid or
payable to any railroad company by a city on account  of  real  property
taxes  levied by such city against exempt railroad real property for the
current fiscal year in lieu of separately assessing such exempt railroad
real property.
4. The amount of state assistance payable to  the  public  corporation
shall  be  fifty  per  cent of the difference in total taxes on railroad
real property computed as provided in subdivision three of this  section
except  that  if  the amount computed as provided in subdivision five of
this section is greater, state assistance shall be paid in such  greater
amount.
5. a. Calculate the sum of the following three amounts:
(1)  The result of applying the tax rate for the fiscal year preceding
the current fiscal year to the amount by which the railroad ceiling  for
such preceding year exceeded the railroad ceiling for the current fiscal
year  after  the  ceiling  for  the  current fiscal year shall have been
adjusted to eliminate the effects of the changes, if any, in  the  level
of  assessment  on  the  assessment  roll  for  which  such  ceiling was
established and to reflect the  same  property  which  was  included  in
establishing the ceiling for the preceding fiscal year;
(2) The total amount of state aid received or receivable by the public
corporation  for  the  fiscal  year  preceding  the  current fiscal year
pursuant to this section; and
(3) An amount which will limit the tax rate increase in any year for a
public corporation to two per cent where such increase would result from
the exemption of railroad real property pursuant to  the  provisions  of
titles  two-a  and  two-b  of  the  real  property  tax law, and (i) the
acquisitions of real property by the state or an agency of the state, or
(ii)  reductions  in  assessments on taxable state-owned lands, or (iii)
both (i) and (ii). All terms  used  in  this  paragraph  which  are  not
otherwise  defined  in  this  section shall have the same meaning as set
forth in section five hundred forty-five of the real property tax law.
b. Subtract from the sum calculated in paragraph a of this subdivision
two per cent of the total amount of taxes levied by or on behalf of  the
public  corporation  for  the  fiscal  year preceding the current fiscal
year.
c. Whenever the result of the subtraction provided for in paragraph  b
of  this subdivision exceeds the amount of state aid which would be paid
to the public corporation pursuant to subdivision three of this section,
the public corporation shall be entitled to  the  amount  of  state  aid
calculated pursuant to this subdivision notwithstanding that the levy of
taxes  for  the  base fiscal year of such public corporation on railroad
real property  did  not  exceed  either  one  hundred  thousand  dollars
($100,000)  or  two per cent of the total amount of taxes levied against
all real property by or on behalf of such public corporation.
6. During the state  fiscal  year  commencing  April  first,  nineteen
hundred  seventy-eight, the chief fiscal officer of a public corporation
entitled to state assistance under this section shall  make  application
for  such  assistance  to  the  state  board.  Whenever in a city with a
population of one hundred  twenty-five  thousand  or  more  no  separate
school district tax rate is determined and used in levying and extending
school  taxes,  the  chief  fiscal  officer  of such city shall file one
application which shall contain consolidated information and  data  with
respect  to  taxes  levied  by or on behalf of such city and city school
district. The application shall be made on a form approved by such board
and shall contain such information as the board shall require.  For  the
purpose  of  the  application, the assessor of each assessing unit shall
supply the necessary information to the  chief  fiscal  officer  of  any
public corporation for which taxes have been levied within the assessing
unit.  The  application  shall  be  made  within  three months after the
commencement of  the  first  fiscal  year  of  such  public  corporation
commencing  on  or  after April first, nineteen hundred seventy-eight or
within ninety days of  the  effectiveness  of  the  provisions  of  this
subdivision  as last amended whichever last occurs. Upon approval by the
state board of the application made pursuant to  this  subdivision  and,
upon computation and certification by the state board to the comptroller
of  the  amount  of  state assistance payable to each public corporation
pursuant to this section, such state assistance shall be apportioned and
paid to such public corporation on audit and warrant of the  comptroller
out  of  moneys  appropriated by the legislature for state assistance to
public corporations in which railroad real property is partially  exempt
from taxation.
7.  Notwithstanding  any  other  provisions  of this section or of any
other law, state assistance shall be payable under this section  to  any
public  corporation  in  which  certain  railroad real property would be
exempt from taxation under title two-a and title two-b of  article  four
of  the  real property tax law but for the provisions of subdivision two
of section four hundred eighty-nine-d of such law, in  the  same  amount
for which such public corporation would have qualified if such exemption
had  been  effective, provided, however, that if such public corporation
at any time receives any of the taxes which  were  levied  against  such

railroad  real  property  as  a  result  of  the  applicability  of said
subdivision two  of  section  four  hundred  eighty-nine-d,  the  public
corporation  shall notify the state board of equalization and assessment
of  the  amount  of  taxes  so  received and shall repay to the state an
equitable  share  of  the  taxes  so  received.  For  purposes  of  this
subdivision,  "equitable  share  of the taxes so received" shall mean an
amount determined by such board equal  to  the  difference  between  the
aggregate  state  assistance paid to such public corporation pursuant to
this subdivision and the aggregate state  assistance  which  would  have
been  payable  to  such  public corporation if the taxes so received had
been taken into account in  computing  the  aggregate  state  assistance
payable pursuant to this section.
8.  a.  Notwithstanding  any other provision of this section or of any
other law, any public corporation in which is located any real  property
(1)  with  respect to which the metropolitan transportation authority or
any  subsidiary  corporation  of  that  authority  is  entitled  to  tax
exemption  pursuant  to  section  twelve  hundred seventy-five or twelve
hundred sixty-six, subdivision five, of the public authorities law,  and
(2)  which constitutes railroad facilities as defined in subdivision ten
of section twelve hundred sixty-one of such law and (3)  which  is  used
for  transportation  purposes,  shall  be  entitled to apportionment and
payment of state assistance under the  foregoing  subdivisions  of  this
section  in  the  same  manner  and  to  the same extent as if such real
property were railroad real property exempt from  taxation  pursuant  to
title  two-b  of  article  four  of the real property tax law, except in
making such computations, the state board of equalization and assessment
shall use an exemption factor of one hundred percent.
In the case of such property of  a  railroad  which  was  exempt  from
taxation  pursuant  to  section  four  hundred  seventy-six  of the real
property tax law for fiscal year commencing  on  or  after  July  first,
nineteen  hundred  fifty-four, the state board shall determine the total
amount of taxes which would have been levied but for the  provisions  of
titles  two-a and two-b of article four of the real property tax law, by
or on behalf of such public corporation on account of the transportation
property of  such  railroad  for  the  current  fiscal  year  by:
(1)
ascertaining  the  amount  of  taxes finally determined to be payable on
such property for the first fiscal year in which such property qualified
for an exemption under section four  hundred  seventy-six  of  the  real
property  tax  law  adjusted  for any such property retired or otherwise
disposed of, (2) multiplying  the  amount  so  computed  for  each  such
corporation  by three, and (3) further adjusting the result by the ratio
which the tax rate for such public corporation for the fiscal year  next
preceding the first fiscal year for which the aid is to be paid pursuant
to  this subdivision bears to the tax rate adjusted for changes in level
of assessment for such public corporation in the first fiscal  year  for
which  such  property qualified for exemption under section four hundred
seventy-six of the real property tax law. The result of such computation
shall be used as prescribed in paragraph b of subdivision three of  this
section.
b.  For  the first fiscal year for which state aid is paid pursuant to
this subdivision, the amount of  aid  shall  be  equal  to  one  hundred
percent  of  the  amount  computed  pursuant  to  this section, and each
succeeding fiscal year thereafter such amount shall  be  reduced  by  an
amount  equal  to three percent of the amount payable for the first year
for which state aid is paid pursuant to this subdivision.
9. Notwithstanding any other provision of this section, the amount  of
state  assistance  payable  to  a  public  corporation  pursuant to this
section in the state fiscal year commencing  on  April  first,  nineteen

hundred  seventy-eight  shall be the amount of state assistance that was
paid to such public corporation in the state fiscal year  commencing  on
April  first,  nineteen  hundred  seventy-seven.   Upon ascertainment of
state  assistance  payable,  pursuant  to  this  subdivision, such state
assistance shall be apportioned and paid to such public  corporation  on
audit  and  warrant  of the comptroller out of moneys apportioned by the
legislature.
10. Notwithstanding any inconsistent  provision  of  this  section  or
other  law,  the  provisions  of  this section shall remain in force and
effect only until March thirty-first, nineteen hundred seventy-nine.
* NB Expired March 31, 1979