N.Y. Real Property Tax Law § 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.