Assessor Manuals, Exemption Administration
Exemption Administration Manual—Part 2: Industrial, Commercial, and Public Service
Section 4.06 - RPTL Section 456: Municipal railroads (all capital stock owned by a municipal corporation)
Year originally enacted:
Real property held and used for railroad purposes by any corporation whose capital stock is entirely owned by a municipal corporation is wholly exempt from taxation and is exempt, for certain purposes, from special ad valorem levies and special assessments.
Property must be held by a corporation whose capital stock is wholly owned by a municipal corporation.
Property location requirements:
Property use requirements:
Property must be used for railroad purposes.
Certification by state or local government:
Required construction start date or other time requirement:
Limitation on exemption
|General municipal taxes||School district taxes||Special ad valorem tax||Special assessments|
|1. Amount||No limit||No limit||No limit||No limit|
|2. Duration||No limit||No limit||No limit||No limit|
|3. Taxing jurisdiction|
|a. County or county special districts||Ex||NA||L||L|
|c. Town or town special district||Ex||NA||L||L|
|e. School district||NA||Ex||NA||NA|
|Ex-Exempt Tax-Taxable NA-Not Applicable|
|L - Liable only for (1) county and town charges for capital costs of sewer systems, water supply systems, waterways and drainage improvements, and streets and highways, plus (2) special assessments for indebtedness contracted before 7/1/53.|
Payments in lieu of taxes
Calculation of exemption
General municipal and school district taxes:
100% of assessed value.
Special ad valorem levies and special assessments:
100% of assessed value or other basis of assessment.
The exemption applies to all levies and assessments imposed by counties, county special districts, towns, and town special districts except (1) charges levied to pay for the capital costs of sewer systems, water supply systems, waterways and drainage improvements, and streets and highways, and (2) special assessments for indebtedness contracted before 7/1/53. The exemption does not apply to special assessments imposed by cities or villages.
Coding of exemption on assessment roll
|Code||Description of alternative codes possible|
Assessment roll section(s):
Non-ceiling Railroads (ARLM Section 6).
Note: This code should not be used to identify property that is exempt under any of the statutes listed under Similar Exemptions below. For coding of such property, see the Exemption Profile for the statute that applies.
Filing requirements (owner or occupant of property)
Reporting requirements (assessor)
|Amtrak Railroad||45 USC 546b|
|Railroad companies (interstate)||RPTL §489-d|
|Railroad companies (intrastate)||RPTL §489-dd|
|Railroad passenger stations in New York City||RPTL §476-a|
|Railroad and related property (New York City)||Rap Tran L §103|
Please send general questions or comments to ORPTS.