§ 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 commissioner and (b)
submission of such proof as may be required by the commissioner 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 commissioner 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
commissioner the location and cost of any such improvements,
enhancements, or upgrades in a manner that provides the commissioner
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 commissioner the location and cost of any such
construction in a manner that provides the commissioner 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.