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Department of Taxation and Finance

Railroad ceilings procedure for city, town and village assessment rolls

Part 1: Scope

Part 1: Scope

These procedures shall apply to the calculation and establishment of railroad ceilings for the assessment rolls of cities, towns, villages and county assessing units beginning with the 2006 assessment roll.

Part 2: Valuation of railroad property

  1. The local reproduction cost new, less depreciation, of the real property of a railroad company shall be determined as follows:
    1. Calculate the local reproduction cost new, less depreciation, of each account of structural property reported under 20 NYCRR 8200-2.1(a) as follows:
      1. Determine the reproduction cost new of each valuation unit by trending surviving original cost in the manner provided in section 2 of this part.
      2. Multiply the result by a factor for physical depreciation, in the manner provided in section 4 of this part and subtract the result from paragraph (1) of this subdivision.
    2. Calculate reproduction cost new, less depreciation of each account of mass property reported under 20 NYCRR 8200-2.1(a) as follows:
      1. Calculate for intrastate railroad companies the reproduction cost new, less depreciation of each account of mass property reported under 20 NYCRR 8200-2.1(a) by multiplying the number of units of measurement in each valuation unit by the appropriate unit price.
      2. Calculate for interstate railroad companies the reproduction cost new, less depreciation of each account of mass property reported under 20 NYCRR 8200-2.1(a) by multiplying the number of units of measurement in each valuation unit by the appropriate unit price.
    3. Calculate the value of land and rights in land which is equal to the sum of the following products:  
      1. the number of units of land (square feet or acres) in each valuation unit times the appraised value.
    4. The local reproduction cost new, less depreciation, of the railroad real property equals the sum of the valuation units of all types of real property in the assessing unit as determined in subdivisions (1),(2) and (3) of this section.
  2. Calculation of reproduction cost new
    Reproduction cost new for a valuation unit of structural property equals the original cost divided by the year indices, multiplied by the price level index, as provided for in section 3, subdivision 4 of this part.
  3. Determination of price level indices
    Price level indices are determined for the following types of property in the manner set forth in the following subdivisions:
    1. Track by selecting the typical index indicated from and supported by the following sources:
      Sources
      Source Description
      Means Determined from comparing price levels involving:
      a. single track railroad siding
      b. spikes, plates, bolts, ties, bedding, misc.
      c. equipment and labor to establish an index.
      Engineering news record Determined from a weighted average, as indicated by ENR, of:
      a. steel prices
      b. skilled and unskilled labor.
      Marshall, Swift Determined from using installed cost of railroad spur-multiple weight rail average.
      American Association  of Railroads Determined from using a weighted average of labor rates and material rates for the Eastern District.
    2. Site by selecting the typical index indicated from and supported by the following source:
      Source
      Source Description
      Means site work Determined from comparing price levels involving:
      a. Wire fence
      b. Common grading
      c. Loose rock excavation
      d. Drilling and blasting
    3. Miscellaneous communication: signals and electrical wire, by selecting the indices by the following source:
      Source
      Source Description

      Handy-whitman

      Determined by the July-to-July indices for Electric Utility Construction for the North Atlantic Region, line 42 (total plant distribution) and line 43 (station equipment)

    4. Structures-determine the typical index indicated from the following sources:
      Sources
      Source Description
      Handy-whitman Determined by the July-to-July trend of the appropriate accounts
      Wholesale price index Determined by a weighted average of materials and labor
      Engineering News Record Rates for the July-to-July period

      Supporting data, prices, appraised values, service lives and indices are on file in the office of Valuation Services Bureau.

  4. An allowance for physical depreciation shall be calculated as follows:  
    1. Divide the age of the property by its service life, as set forth in part 5.
    2. Multiply the result obtained in (1) by 0.8.  
      1. In the calculation of physical depreciation, the result of age divided by service life may not exceed 1.0000.  
      2. The allowance for physical depreciation may not exceed 80 percent.
  5. Allowance for functional obsolescence:
    1. A railroad company may apply for an allowance for functional obsolescence by submitting information to demonstrate the existence of such functional obsolescence as defined in 20 NYCRR 8185-1.1.
    2. An application of an allowance for functional obsolescence shall contain information relating to present and projected needs, present and anticipated capacity, and shall contain a suggestion of the manner by which the allowance should be calculated. The allowance may be expressed as a factor.

 Part 3: Determination of economic factor for property of intrastate railroads

  1. System reproduction cost
    1. The system reproduction cost of each intrastate railroad company shall include the property of each railroad company used by it for transportation purposes and owned by or leased to it, constituting the railroad system:
      1. the reproduction cost new, less depreciation, of road and equipment;
      2. the value of land and rights;
      3. working capital, including material and supplies.
    2. Average railway earnings and expenses
      1. The average railway earnings shall be determined for each intrastate railroad company as follows:
        1. Calculate the revenues which such railroad company is entitled to receive from transportation service and from rents from property constituting the railroad system included in the system
        2. Calculate the expenses incurred in furnishing transportation service, including expenses incurred in the operation and maintenance of the property constituting the railroad system included in the system reproduction cost, depreciation of such property, rents and other expenses incurred for property, rents and other expenses incurred for property used by such railroad company for transportation purposes not included in the system reproduction cost, and United States government taxes for old-age retirement under the Federal Railroad Retirement Tax Act and for unemployment insurance under the Federal Railroad Unemployment Insurance Act, but excluding all other taxes.
        3. Calculate the railway earnings by subtracting expenses, as determined pursuant to paragraph (b) of this subdivision, from revenues, as determined pursuant to paragraph (a) of this subdivision.
        4. Calculate the average railway earnings by averaging the railway earnings for the latest five calendar years available prior to the determination of the tentative railroad ceiling.
      2. In making determinations under this section, ORPTS shall consider the information contained in the financial statements of the railroad company filed with the New York State Department of Transportation, and the accounting records maintained by such railroad company in accordance with generally accepted accounting principles, or, where mandated, in accordance with the Uniform System of Accounts for railroad companies prescribed by the Surface Transportation Board. The board may consider information available from the State Department of Transportation or other regulatory agency having jurisdiction over the accounts of such railroad company, as well as information available from other sources, including reports required pursuant to 20 NYCRR 8200-2.1, and such other information on the subject as may be available to it.
      3. Earnings ratio
        The earnings ratio for each railroad company is computed by dividing its average railway earnings by its system reproduction cost, computed to the nearest hundredth of one percent.
      4. Exemption factor
        The exemption factor for each railroad company is the percentage indicated under exemption factor in the following table opposite the earnings ratio of such company. If the earnings ratio of a railroad company does not coincide with a specific earnings ratio indicated in this table, the exemption factor for that company is determined by interpolation to the nearest tenth of one percent. 
         
        Exemption factor
        Earnings ratio (percent) Exemption factor (percent)
        12 0
        11 5
        10 10
        9 15
        8 20
        7 25
        6 30
        5 35
        4 40
        3 50
        2 60
        1 80
        0 85
      5. Economic factor
        For each intrastate railroad company, the economic factor equals the difference between the whole number one and the exemption factor as determined in accordance with the provisions of section 4 of this part.

Part 4: Determination of economic factor for property of interstate railroads

  1. Average railway revenues and expenses
    1. The average railway revenues for the railroad real property of each interstate railroad company shall be determined as follows:
      1. Calculate the revenues which such railroad company is entitled to receive from transportation service, operations and rents derived from property other than transportation equipment used for transportation purposes. Adjust that amount by the net rental receivable or by the net rental payable for the possession or use of transportation equipment.
      2. Average railway revenues equals the average of the revenue ascertained, pursuant to paragraph (a) of this subdivision, for the most recent five fiscal years ending on or before the last day of December immediately preceding the determination of the tentative railroad ceiling; provided that if a railroad company has operated for less than five years, average railway revenues equals the average of the revenue for the number of years of operation immediately preceding the determination of the tentative railroad ceiling.
    2. The average railway expenses for the railroad real property of each interstate railroad company shall be determined as follows:
      1. Calculate the expenses incurred in furnishing transportation service and in operations, including the expense of rents on, and maintenance and depreciation of, the property used in the service, and taxes for old-age retirement and unemployment insurance, but excluding all other taxes.
      2. Average railway expenses equals the average of the expenses ascertained, pursuant to paragraph (a) of this subdivision, for the most recent five fiscal years ending on or before the last day of December immediately preceding the tentative determination of the railroad ceiling; provided that if a railroad company has operated for less than five years, then average railway expenses equals the average of the expenses for the number of years of operation immediately preceding the determination of the tentative railroad ceiling.
      3. For railroad ceilings finally determined on and after June 1, 1987, ORPTS shall consider the information contained in the financial statements of each railroad company filed with the Surface Transportation Board and the accounting records maintained by such railroad company for each of the report years using the depreciation accounting method, in accordance with generally accepted accounting principles, for all assets except land.
  2. Earnings ratio
    A ratio for each railroad company is computed to the nearest thousandth of one percent by dividing its average railway expenses by its average railway revenues provided, however, that if a railroad company has operated for less than one full year prior to the first day of the year in which a determination of a tentative railroad ceiling for that railroad company is made, then the ratio for that ceiling of that railroad company is one.
  3. Economic factor
    1. The economic factor for an interstate railroad company is based upon the following table: 

      Exemption factor
      Earnings ratio Exemption factor
      .60 100%
      .65 85%
      .70 70%
      .75 60%
      .80 50%
      .85 40%
      .90 30%
      .95 20%
      1.0 15%
    2. The economic factor is determined by interpolation to the nearest tenth of one percent if the ratio is between one and nine-tenths, or between nine-tenths and three-fourths.

Part 5: Life codes and service lives for railroad structural property

Life codes and service lives for railroad structural property
ICC account number Life code Type of property Service life
3 Grading
CBX Catch basins 50
NDC Excavations Non-depreciable
NDF Embankments Non-depreciable
NDM Mattresses 30
SSP Piling, sheet steel 50
CIP Pipe, cast iron 50
VTP Pipe, vitrified clay 33
PPE Pipe, other 25
RCP Pipe, reinforced concrete 50
COP Pipe, corrugated iron 33
WIP Pipe, wrought iron 33
MRY Retaining walls and masonry culverts 50
RRX Riprap 100
TRT Timber, treated 35
UNT Timber, untreated 20
MSC Miscellaneous 25
4 Other right-of-way expenditures
UNX Crossings, under grade 50
NDX Crossings, grade (use 50% condition)
OVX Crossings, over grade 50
NDC Excavation Non-depreciable
PPE Pipe, other 50
RCP Pipe, reinforced concrete 50
MSC Miscellaneous 50
5 Tunnels and subways
BBM Buildings, brick or concrete 50
ELX Electric lighting 25
NDC Excavation Non-depreciable
TLT Lining, timber 25
MRY Lining, masonry 60
MEQ Mechanical apparatus 25
TPK Packing, timber-stone 60
PAT New York City tunnels 60
CIP Pipe, cast iron 50
MSC Miscellaneous 25
6 Bridges, trestles, culverts
CBX Catch basins 50
BOX Culverts, masonry box 50
ARC Culverts, masonry arch 50
SRF Culverts, steel 50
WBX Culverts, wood box 20
NDD Dredging Non-depreciable
MEQ Machinery 25
MRY Masonry head walls 50
SSP Piling, sheet 50
TTP Piling, treated 35
UNP Piling, untreated 20
RCP Pipe, reinforced concrete 50
COP Pipe, corrugated iron 33
VTP Pipe, vitrified clay 33
WIP Pipe, wrought iron 33
CIP Pipe, cast iron 50
RRX Riprap 100
MRC Substructures, concrete 50
MRS Substructures, stone masonry 50
SMC Superstructures, concrete 50
SMY Superstructures, stone masonry 50
STS Superstructures, steel 50
TRT Timber, treated 33
UNT Timber, untreated 20
MSC Miscellaneous 25
CUL Culverts 50
7 Elevated structures
MRY Masonry 50
STS Steel 50
MSC Miscellaneous 25
16 & 25 Stations, office buildings
BBR Buildings, brick (regular) 50
BBS Buildings, brick (special) 50
BBM Buildings, masonry 50
BFL Buildings, frame - large 40
BFI Buildings, frame - intermediate 40
BFM Buildings, frame - minor 33
BCS Buildings, G.I. and steel 50
BCW Buildings, G.I. and wood 33
DRC Driveways, cinder 20
ELX Electric lighting 25
MEQ Equipment 25
FLE Floodlighting 33
FAA Furniture 25
NDG Grading Non-depreciable
NDL Landscaping Non-depreciable
PAV Paving 25
PPE Pipe 33
PLT Platforms 25
MRY Retaining walls 50
STE Steel tank, exposed 50
SPN Stock pens 17
TRT Timber, treated 33
TSC Track scales 40
WCL Water columns 33
WEL Wells 40
MSC Miscellaneous 50
BFR Buildings, frame 40
17 Roadway buildings
BBR Buildings, brick 50
BFL Buildings, frame - large 40
BFI Buildings, frame - intermediate 40
BFM Buildings, frame - minor 33
BCS Buildings, G.I. and steel 50
FAA Furniture 25
NDG Grading Non-depreciable
MEQ Machinery 25
0ST Oil stations 33
PPE Pipe 33
PLT Platforms 25
STE Steel tanks, exposed 50
MSC Miscellaneous (incl. car bodies) 25
BFR Buildings, frame 40
18 Water stations
BBM Buildings, concrete and brick 50
BFR Buildings, frame 40
DAM Dams - reservoirs 50
MEQ Machinery, equipment 25
PAV Paving 25
CIP Pipe, cast iron 50
ORP Pipe, other (optional) 33
PPE Pipe, other (optional) 33
PIT Pits 50
TSS Tanks, steel with steel towers 50
TWS Tanks, wood with steel towers 30
TWW Tanks, wood with wood towers 25
TPN Track pans 33
WCL Water columns 33
WTP Water treating plants 33
WEL Wells 40
MSC Miscellaneous 25
BBR Buildings, brick 50
19 Fuel stations
BBR Buildings, brick 50
BFR Buildings, frame 50
CMB Conveyors and movable bridges 33
MEQ Equipment 25
FMC Mechanical coaler, concrete 50
FMS Mechanical coaler, steel 50
FMF Mechanical coaler, frame 33
OST Oil stations 33
PPE Pipe 33
PIT Pits 50
STB Tanks, steel, buried 40
STE Tanks, steel, exposed 50
FTR Trestles 25
MSC Miscellaneous 25
20 Shops and engine houses
BBR Buildings, brick 50
BBM Buildings, masonry 50
BFL Buildings, frame - large 40
BFI Buildings, frame - intermediate 40
BFM Buildings, frame - minor 33
BCS Buildings, G.I. and steel 50
CMB Conveyors and movable bridges 33
ELX Electric lighting 25
MEQ Equipment 25
FAA Furniture 25
NDG Grading Non-depreciable
FMC Mechanical coaler, concrete 50
FMS Mechanical coaler, steel 50
PAV Paving 25
PPE Pipe 33
PIT Pits 50
PLT Platforms 25
NDS Sludge beds Non-depreciable
STE Tanks, steel, exposed 50
TSS Tanks, steel with steel tower 50
TNT Turntables 40
WST Wheel storage track 50
MSC Miscellaneous (incl. car bodies) 25
BFR Buildings, frame 40
21 Grain elevators
MEQ Machinery 25
EBR Structures, brick 50
EBS Structures, brick and steel 50
EOT Structures, other 50
MSC Miscellaneous 30
22 Storage warehouses
BBM Buildings, masonry 50
BFR Buildings, frame 40
BCS Buildings, G.I. and steel 50
BCW Buildings, G.I. and wood 33
MEQ Machinery 25
PAV Paving 25
MSC Miscellaneous 30
23 Wharves and docks
BBR Buildings, brick 50
BFR Buildings, frame 40
CMB Conveyors and movable bridges 33
COD Docks, concrete 50
NDD Dredging Non-depreciable
NDF Embankment Non-depreciable
MRY Masonry, concrete 50
MUL Mechanical unloaders 33
MEQ Machinery and equipment 25
TRP Piling, noninfested, treated 50
ITP Piling, infested, treated 35
UNP Piling, noninfested, untreated 35
IUP Piling, infested, untreated 17
SSP Piling, sheet steel 50
RRX Riprap 100
RFC Rock-filled cribs 50
STS Steelwork 50
TRT Timber, treated 35
UNT Timber, untreated 20
MSC Miscellaneous 30
24 Coal and ore wharves
ATC Automatic train control 33
BBR Buildings, brick 50
BFL Buildings, frame - large 40
BFI Buildings, frame - intermediate 40
BFM Buildings, frame - minor 33
COD Coal and ore docks, concrete 50
CMB Conveyors and movable bridges 33
NDD Dredging Non-depreciable
ELX Electric lighting 25
MEQ Machinery and equipment 25
MRY Masonry, concrete 50
MUL Mechanical unloaders 33
TRP Piling, non-infested, treated 50
ITP Piling, infested, treated 35
UNP Piling, non-infested, untreated 35
IUP Piling, infested, untreated 17
SSP Piling, sheet steel 50
PPE Pipe 33
RRX Riprap 100
RFC Rock-filled cribs 50
STS Steelwork 50
TRT Timber, treated 35
UNT Timber, untreated 20
TRN Transformers 25
MSC Miscellaneous 30
26 Telegraph and telephone lines
CAB Cable 25
CNV Conduit, vitrified clay pipe 33
CNI Conduit, iron pipe 35
CNW Conduit, treated wood 35
EQP Equipment 25
POL Poles 25
PAW Poles and aerial wire, combination 33
UCD Underground cable and duct, combination 37
WCP Wire, copper 70
WIR Wire, iron 50
MSC Miscellaneous 30
27 Signals and interlockers
XPR Auto, highway, crossing prot. 25
ATS Automatic signals 25
ATC Automatic train control 25
BLS Block limit signals 25
BBR Buildings, brick 50
BBM Buildings, concrete 50
BFR Buildings, frame 40
CRT Car retarders 25
CTC Central traffic control 25
CTS Code test circuits 25
EIL Electric interlockers 25
FAA Furniture 25
GOS Grounding for oil sidings 25
MIL Mechanical interlockers 25
SGB Signal bridges 50
TOS Train order signals 25
TSS Train starting systems 25
TOP Turnout protection 25
WNS Warning signals 25
MSC Miscellaneous 25
EEE Electrical and mechanical equipment 50
29 Power plants
BBR Buildings, brick 50
BBM Buildings, steel and concrete 50
BFR Buildings, frame 40
BCS Buildings, G.I. and steel 50
MEQ Equipment 25
FAA Furniture 25
PPE Pipe 33
PLT Platforms 25
TRL Trestles 25
MSC Miscellaneous 30
31 Power transmission systems
BBR Buildings, brick 50
CAB Cable 25
CAT Catenary installations 50
CON Conduit 35
PPE Pipe 33
PPT Pipe tunnels 50
PST Poles, steel 50
PWT Poles, treated wood 35
PWU Poles, untreated wood 25
TDR Third rails 50
TDE Trans. and distr. - electric 33
TRN Transformers 25
WAL Wire, aluminum 50
WBR Wire, bronze 50
WCT Wire, copper - trolley 25
WCF Wire, copper - feeder 50
WOT Wire, other 25
MSC Miscellaneous 30
35 Miscellaneous structures
BBR Buildings, brick 50
BFR Buildings, frame 40
FLE Floodlighting 33
FAA Furniture 25
NDG Grading Non-depreciable
HCT Hydrocarbon tanks 25
MEQ Mechanical items 35
PPE Pipe 33
SNM Snow melters 20
STS Steel 50
MRS Substructures, masonry 50
SMY Superstructure, masonry 50
UNT Timber, untreated 20
MSC Miscellaneous 25
39 Public improvements construction
NDX Crossings, grade (use 50% condition)
OVX Crossings, over grade 50
UNX Crossings, under grade 33
PPE Pipe 33
MSC Miscellaneous 35
44 Shop machinery
MEQ Machinery 35
NDT Tools 15
MSC Miscellaneous 15
45 Power plant machinery
BLR Boilers 30
MEQ Machinery 35
PPE Piping 33
PMP Pumps 25
NDT Tools 15
MSC Miscellaneous 15

This procedure is established pursuant to RPTL, Titles 2-A and 2-B and 20 NYCRR 8200.

Updated: