§ 489-ii. Local reproduction cost. 1. The commissioner 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 commissioner 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 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.

9. In determining a local 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. 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 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 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
commissioner 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 commissioner and the department of transportation shall
specify.