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Railroad Ceilings Procedure for City, Town and Village Assessment Rolls

For questions concerning this procedure contact:

Railroads
Phone : (518) 474-1071

Part

1 Scope
2 Valuation of Railroad Property
3 Determination of Economic Factor for Property of Intrastate Railroads
4 Determination of Economic Factor for Property of Interstate Railroads
5 Life Codes and Service Lives for Railroad Property

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 real 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 200-2.1(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.



    1. 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.



    1. 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:

        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

        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

        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:

        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.

    2. 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.

      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.

Allowance for functional obsolescence:

 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.

    1. 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.



    1. 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.



    1. Exemption factor
      1. 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. 
         
        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

  1. 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.



    1. 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.



  1. Economic factor
    1. The economic factor for an interstate railroad company is based upon the following table: 

      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 

ICC 
Acct.
No.

Life
Code

Type of Property

Service 
Life

3

GRADING

 

CBX

Catch basins

50

 

NDC

Excavations

nondepreciable

 

NDF

Embankments

nondepreciable

 

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

nondepreciable

 

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

nondepreciable

 

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

nondepreciable

 

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

nondepreciable

 

NDL

Landscaping

nondepreciable

 

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

nondepreciable

 

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

nondepreciable

 

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

nondepreciable

 

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

nondepreciable

 

NDF

Embankment

nondepreciable

 

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

nondepreciable

 

ELX

Electric lighting

25

 

MEQ

Machinery and equipment

25

 

MRY

Masonry, concrete

50

 

MUL

Mechanical unloaders

33

 

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

 

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

nondepreciable

 

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: