Section 489-D. Exemption of railroad real property from taxation

1.
  Subsidized railroad real property shall be  exempt  from  taxation.  The
  exemption  shall  be  granted each year only upon (a) application by the
  owner of said property on a form prescribed by the state board  and  (b)
  submission  of such proof as may be required by the state board that the
  property is subsidized railroad real property. The application and proof
  shall be filed with the appropriate assessing authority on or before the
  appropriate taxable status  date,  with  copies  thereof  simultaneously
  filed with the state board and the department of transportation.
    2.  Bridges,  viaducts, and other similar structures constructed on or
  after January first, nineteen hundred fifty-nine as the  result  of  the
  creation,  pursuant  to  article  twelve-B  of the highway law, of a new
  highway, street, or roadway carrying railroad facilities over  such  new
  highway, street, or roadway shall be exempt from taxation. No assessment
  of  any  bridges,  viaducts,  and other similar structures lengthened or
  reconstructed on or after January first, nineteen hundred fifty-nine  as
  the result of the widening, relocation, or reconstruction of an existing
  highway, street, or roadway, pursuant to article twelve-B of the highway
  law,  shall be increased by reason of such reconstruction or relocation,
  notwithstanding the provisions of any general, special, or local law  to
  the  contrary;  provided,  however,  that the assessment on the original
  portion of such bridges, viaducts, and other similar structures  may  be
  varied  in  accordance with the changes made generally in assessments on
  other local real property. Whenever any new construction of property  is
  exempt pursuant to the provisions of this subdivision and the provisions
  of  subdivision  three-a or three-b of this section, such property shall
  receive the exemption provided by subdivision three-a or three-b of this
  section.
    3. Railroad real property shall be exempt from taxation to the  extent
  of  any  increase  in  value  thereof  by reason of any of the following
  additions,  betterments,  improvements,  or  reconstructions   made   or
  installed  thereon after the last preceding taxable status date prior to
  April twenty-first, nineteen hundred fifty-nine: (a) the installation of
  automatic grade crossing protective devices, such as flashing lights  or
  automatic  gates  and their attendant facilities; (b) the reconstruction
  or the replacement  of  signals,  railroad  bridges,  stations,  freight
  houses,  classification  yards, repair shops, or any other facility used
  for transportation purposes; provided that the property as reconstructed
  or replaced is the same general type of facility and is located  in  the
  same city or town as the property reconstructed or replaced; and (c) the
  construction   or   reconstruction   pursuant   to  the  grade  crossing
  elimination acts, the railroad law, or the  highway  law  of  any  grade
  separation  structure,  such  as  bridges,  viaducts, tunnels, retaining
  walls, and embankments constructed for the  purpose  of  eliminating  or
  avoiding   highway-railroad  crossings  at  grade.    Whenever  any  new
  construction of property is exempt pursuant to the  provisions  of  this
  subdivision and the provisions of subdivision three-a or three-b of this
  section,   such   property  shall  receive  the  exemption  provided  by
  subdivision three-a or three-b of this section.
    3-a. Whenever a railroad company makes any improvements, enhancements,
  or upgrades to any existing railroad real property in order  to  improve
  freight  service  or  to  provide improved or new passenger service, the
  cost of such project shall not be included in  the  calculation  of  any
  subsequent  railroad ceilings for a period of ten years from the date of
  completion of such project; provided that such  project's  improvements,
  enhancements,  or  upgrades  were  made  pursuant  to  a capital project
  proposal  approved  by   the   commissioner   of   the   department   of
  transportation,  as  provided  in  section four hundred eighty-nine-v of

  this title. The department of transportation shall certify to the  state
  board  the  location and cost of any such improvements, enhancements, or
  upgrades in a manner that provides the state board with sufficient  time
  to carry out its responsibilities pursuant to this chapter.
    3-b.  The cost of bridges, viaducts, other structures, or improvements
  and new rail lines, including  any  new  rail  lines  built  to  replace
  existing  rail  lines,  shall  not be included in the calculation of any
  subsequent railroad ceilings for a period of ten years from the date  of
  completion of such project; provided that such construction was pursuant
  to  a  capital  project  proposal  approved  by  the commissioner of the
  department  of  transportation  as  provided  in  section  four  hundred
  eighty-nine-v  of  this  title.  The  department of transportation shall
  certify  to  the  state  board  the  location  and  cost  of  any   such
  construction  in  a manner that provides the state board with sufficient
  time to carry out its responsibilities pursuant to this chapter.
    4. Except as provided in subdivision five of  this  section,  railroad
  real  property  other  than  subsidized  railroad real property shall be
  exempt from taxation to the extent that the assessed  valuation  thereof
  exceeds  the railroad ceiling determined in accordance with the earnings
  ratio as hereinafter prescribed.
    5. Railroad real property other than subsidized railroad real property
  of a railroad company shall not be exempt from taxation under this title
  on an assessment roll of any assessing unit if the  company  failed  for
  any reason to pay within thirty days of the date when due the tax levied
  upon the taxable portion of the assessment of any railroad real property
  of the company set forth on the immediately preceding assessment roll of
  any  assessing  unit, provided, however, that this subdivision shall not
  apply if the payment or enforcement of  such  taxes  was  restrained  or
  prohibited by an order issued by a court of competent jurisdiction under
  the bankruptcy act of the United States.