§ 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 commissioner 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 commissioner 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 commissioner 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 commissioner 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 commissioner 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
commissioner 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 commissioner 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 commissioner and the department of
transportation shall specify.