N.Y. State Finance Law § 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