§ 489-G — System reproduction cost

§ 489-g. System reproduction cost. 1. The system reproduction cost of\neach railroad company shall be determined by ascertaining so far as may\nbe practicable for the property of each railroad company used by it for\ntransportation purposes and owned by or leased to it constituting the\nrailroad system: (a) the cost of reproduction new less depreciation of\nroad and equipment, (b) the value of land and rights, including value of\nrights in land in, above and under any public street, highway or\nparkway, and (c) working capital including material and supplies,\nprovided, however, that if on the effective date of this title the major\nportion of the property of a railroad company and the management and\ncontrol of such company are located outside of the territorial limits of\nthe United States, the system reproduction cost of such railroad company\nshall consist of the property of such company located within the United\nStates.\n 2. In making determinations under this section as to the property\nconstituting the railroad system, the commissioner shall classify the\nproperty of each railroad company as between transportation or\nnon-transportation so far as may be practicable.\n 3. In ascertaining depreciation of property under this section,\nconsideration may be given to physical condition, average service lives\nof groups of property and other factors, which, however, shall not\ninclude earnings.\n 4. As used in this section, the term "value of land" means the value\nof similar land in the immediate vicinity used for other than railroad\ntransportation purposes, and the term "value of rights in land in, above\nand under any public street, highway or parkway" means ten percent of\nthe value of land in the immediate vicinity used for other than railroad\ntransportation purposes.\n 5. In making determinations under this section, the commissioner shall\nconsider the information contained in the publication entitled "Elements\nof Value of Property Used in Common Carrier Service" then most recently\nissued or made available by the bureau of accounts, cost finding and\nvaluation of the interstate commerce commission. The commissioner may\nconsider information available from the commissioner of transportation\nor other regulatory agency having jurisdiction over the property of such\nrailroad company, as well as information available from other sources,\nincluding reports required pursuant to section four hundred\neighty-nine-q, and such other information on the subject as may be\navailable to it.\n 6. In determining a system reproduction cost for purposes of railroad\nceilings determined for assessment rolls filed on or after January\nfirst, two thousand three, grading shall be deemed a depreciable asset.\nThe allowance for grading in place shall be eighteen percent per annum\nbut shall not exceed ninety percent.\n 7. In determining a system reproduction cost for purposes of railroad\nceilings determined for assessment rolls filed on or after January\nfirst, two thousand three, the commissioner shall not include a factor\nfor any construction overhead in its calculation, nor shall such\noverhead costs be included for any new construction begun on or after\nthe effective date of this subdivision.\n 8. (a) In determining a system reproduction cost for purposes of\nrailroad ceilings established for assessment rolls filed in two thousand\nthree, the commissioner shall allow for increased depreciation of\nrailroad track. For high speed/high tonnage track and medium speed/high\ntonnage track, whether main track or side track, depreciation shall be\nincreased to seventy-five percent. For low speed/medium tonnage track,\nwhether main track or side track, depreciation shall be increased to\neighty-five percent. For low speed/low tonnage track, whether main track\nor side track, depreciation shall be increased to ninety percent.\n (b) Such increased depreciation pursuant to paragraph (a) of this\nsubdivision shall be granted for railroad ceilings established for\nassessment rolls filed in two thousand four and thereafter only upon\napplication of a railroad company. Any increased depreciation shall be\ngranted to all the tracks owned by the railroad in this state not\notherwise exempt from inclusion in the calculation of railroad ceilings.\nSuch grant of increased depreciation shall continue for ten years and\nmay be approved for subsequent periods of ten years upon application and\ncompliance with the standards established by rule and regulation. The\ncommissioner shall, in consultation with the department of\ntransportation and the division of the budget, establish by rule and\nregulation the schedules for increased depreciation and standards for\nimproved service that must be met in order for a railroad to receive\nsuch increased depreciation for railroad ceilings established for\nassessment rolls filed in two thousand four and thereafter. A railroad\ncompany that has failed to file an application or failed to meet the\nstandards for improved services contained in any such rules and\nregulations of the commissioner prior to the establishment of railroad\nceilings for assessment rolls filed in two thousand four shall receive\none-half the benefit for increased depreciation that such company would\nhave received had such application been made and such standards been met\nin a timely fashion. The standards for increased depreciation may be\nbased upon increased tonnage, increased level of passenger service,\nincreased number of passenger trains and/or improved on-time\nperformance, increased average speed, and any other factors indicating\nimproved rail service as the commissioner and the department of\ntransportation shall specify.\n