2023 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.