Section 489-DD. 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 six or seven of this section, such property shall receive
  the exemption provided by subdivision six or seven 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  is  exempt  pursuant to the provisions of this subdivision
  and the provisions of subdivision six or seven  of  this  section,  such
  property  shall  receive  the  exemption  provided by subdivision six or
  seven of this section.
    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.
    6.  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 that 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
  article.  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.
    7. 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 article. 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.