2023 New York Laws › RPT - Real Property Tax › Article 4 - Exemptions › Title 2-B - Railroad Real Property of Interstate Railroad Companies › 489-II - Local Reproduction Cost.

§ 489-ii. Local reproduction cost. 1. The commissioner shall determine
the  local reproduction cost for each railroad company in each assessing
unit as follows:
(a) Ascertain in each assessing unit the cost of reproduction new less
depreciation of the railroad real property other than land;
(b) Ascertain in each assessing unit the value of the land portion  of
railroad  real  property  and  the value of rights in land in, above and
under any public street,  highway  or  parkway  used  by  such  railroad
company;
(c) Add the amounts ascertained under paragraphs (a) and (b) above for
each assessing unit. The result shall be the local reproduction cost.
2.  Local  reproduction  cost and the state equalization rates used in
establishing railroad ceilings shall be based so far as practicable upon
the same period price levels.
3. In making determinations under this section, the commissioner shall
classify  the  real  property  of  each  railroad  company   as   either
transportation  or  non-transportation  so far as may be practicable and
shall consider the manner  in  which  such  property  is  classified  as
property   used  for  transportation  purposes  in  accounts  maintained
pursuant to the uniform system of accounts  for  railroad  companies  as
prescribed by the interstate commerce commission and the commissioner of
transportation  and  in  the  publication  of  the  interstate  commerce
commission entitled "Elements  of  Value  of  Property  Used  in  Common
Carrier  Service"  as  well as information available from other sources,
including  reports   required   pursuant   to   section   four   hundred
eighty-nine-nn of this chapter.
4.  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.
5. 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 per cent of
the value of land in the immediate vicinity used for other than railroad
transportation purposes.
6. The determinations made under this section shall reflect so far  as
may   be   practicable  the  status  of  the  property  as  of  December
thirty-first of the preceding year.
7. In determining local 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 depreciation of grading shall be eighteen percent for
each year in service up to a total of ninety percent.
8. In determining local 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.
9.  In  determining a local 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. Such increased
depreciation shall only be granted for railroad ceilings established for
assessment  rolls  filed  in  two  thousand  four  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.  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 shall
be  met  in  order  for  a  railroad  company  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  the  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 of
the benefit for increased depreciation that it would have  received  had
such  application  been  made  or  such  standards  been met in a timely
fashion. The standards for increased depreciation shall  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.