N.Y. Real Property Tax Law § 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.