Section 489-II. Local reproduction cost

1. The state board shall determine
  the local reproduction cost for each railroad company in each  assessing
  unit as follows:
    (a) Ascertain in each assessing unit the cost of reproduction new less
  depreciation of the railroad real property other than land;
    (b)  Ascertain in each assessing unit the value of the land portion of
  railroad real property and the value of rights in  land  in,  above  and
  under  any  public  street,  highway  or  parkway  used by such railroad
  company;
    (c) Add the amounts ascertained under paragraphs (a) and (b) above for
  each assessing unit. The result shall be the local reproduction cost.
    2. Local reproduction cost and the state equalization  rates  used  in
  establishing railroad ceilings shall be based so far as practicable upon
  the same period price levels.
    3.  In making determinations under this section, the state board shall
  classify  the  real  property  of  each  railroad  company   as   either
  transportation  or  non-transportation  so far as may be practicable and
  shall consider the manner  in  which  such  property  is  classified  as
  property   used  for  transportation  purposes  in  accounts  maintained
  pursuant to the uniform system of accounts  for  railroad  companies  as
  prescribed by the interstate commerce commission and the commissioner of
  transportation  and  in  the  publication  of  the  interstate  commerce
  commission entitled "Elements  of  Value  of  Property  Used  in  Common
  Carrier  Service"  as  well as information available from other sources,
  including  reports   required   pursuant   to   section   four   hundred
  eighty-nine-nn of this chapter.
    4.  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.
    5. 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 per cent of
  the value of land in the immediate vicinity used for other than railroad
  transportation purposes.
    6. The determinations made under this section shall reflect so far  as
  may   be   practicable  the  status  of  the  property  as  of  December
  thirty-first of the preceding year.
    7. In determining local 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 depreciation of grading shall be eighteen percent for
  each year in service up to a total of ninety percent.
    8. In determining local 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.
    9.  In  determining a local 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. Such increased
  depreciation shall only be granted for railroad ceilings established for
  assessment  rolls  filed  in  two  thousand  four  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.  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 shall
  be  met  in  order  for  a  railroad  company  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 the 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 of the benefit
  for  increased  depreciation  that  it  would  have  received  had  such
  application  been  made  or such standards been met in a timely fashion.
  The standards for increased depreciation shall 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.