Section 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 state board 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 state board 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 board 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 state board 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  state  board  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
  state board 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
  state  board  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 state board and the department  of  transportation  shall
  specify.