N.Y.
State Finance Law Section 54-B
State assistance to certain public corporations in which railroad real property is partially exempt from taxation
1.
When used in this section, unless otherwise expressly stated:a.
“Public corporation” means a county, city, town, village, school district, town or county improvement district, district corporation or special district in which real property is subject to taxation or special ad valorem levies.b.
“Railroad company” means a corporation, joint stock company, association, partnership, individual or other person which is operating a railroad system as a common carrier by rail, including but not limited to a street, surface, underground or elevated railroad, whether as owner, lessee, mortgagee, trustee, receiver or assignee of railroad real property, and to which the provisions of title two-a of article four of the real property tax law apply as a result of the exercise of the option provided in Real Property Tax Law § 489-V (Capital improvements to railroad property)section four hundred eighty-nine-v of the real property tax law.c.
“Railroad real property” means the land, real estate and real property (as defined in subdivision twelve of Real Property Tax Law § 102 (Definitions)section one hundred two of the real property tax law) of a railroad company, which is used by such railroad company for transportation purposes and includes (a) such property leased to such railroad company, (b) such property used or occupied by such railroad company, title to which is in the state or in any municipal corporation thereof under any of the grade crossing elimination acts, and(c)
the tangible property of a railroad company situated upon, under, over or above any street, highway, public place or public waters and the value of any franchise, right or permission to construct, maintain or operate a railroad in, under, over, above, or on through, streets, highways or public places.d.
“Tax” or “taxation” means an ad valorem charge or special ad valorem levy imposed upon real property by or on behalf of a public corporation.e.
“Base fiscal year” means the last fiscal year of a public corporation commencing prior to July first, nineteen hundred fifty-nine; provided, however, that when a railroad company elects after July first, nineteen hundred seventy-one to have the provisions of title two-A of article four of the real property tax law apply, then “base fiscal year” for the purposes of this section only means the last fiscal year of a public corporation commencing prior to July first of the year preceding the calendar year in which the first railroad ceiling is determined; and further provided, however, that when railroad real property is acquired by a profitable railroad as defined in section one hundred two of the regional rail reorganization act of nineteen hundred seventy-three, or a subsidiary thereof, from a railroad in reorganization as therein defined, in connection with or pursuant to a plan of reorganization or restructuring under or pursuant to the regional rail reorganization act of nineteen hundred seventy-three, the base fiscal year for purposes of this section only shall continue to be the base fiscal year applicable to such property prior to such acquisition.f.
“Current fiscal year” means the fiscal year of the public corporation for which taxes are levied on the assessment roll affected by the railroad ceiling on account of which state aid is being calculated for the public corporation under this section.g.
“Change in the level of assessment” means the net increase or decrease in the assessed valuation of the taxable property on an assessment roll as a result of assessing such property at a higher or lower ratio of full value.2.
State assistance shall be apportioned and paid in accordance with this section to each public corporation in the state in which there is railroad real property which became partially exempt from taxation under title two-a of article four of the real property tax law prior to April first, nineteen hundred seventy-six and in which the taxes levied against railroad real property by or on behalf of such public corporation for its base fiscal year exceeded one hundred thousand dollars ($100,000) or two per cent of the total amount of taxes levied against all real property by or on behalf of such public corporation for its base fiscal year.3.
The chief fiscal officer of a public corporation entitled to state assistance under this section shall, during such fiscal year of such public corporation commencing on or after July first, nineteen hundred sixty:a.
Compute the total amount of taxes levied by or on behalf of such public corporation against railroad real property for the base fiscal year and deduct therefrom the sum of the following two amounts: (1) An amount equal to any sums which, on or before December thirty-first, nineteen hundred fifty-nine shall have been paid or credited or determined to be payable to any railroad company by a public corporation directly or indirectly on account of such real property taxes; and (2) The total amount of such taxes levied against tangible railroad real property retired or no longer used for transportation purposes and therefore no longer assessable as railroad real property with respect to the tax levy for the current fiscal year of such public corporation; andb.
Subtract from the amount computed pursuant to paragraph a the total amount of taxes which would have been levied by or on behalf of such public corporation against railroad real property for the current fiscal year of such public corporation if the tax rate for the year preceding the current fiscal year when adjusted to reflect any changes in the level of assessment had been applied to the railroad ceiling established for the current fiscal year; provided, however, that if the tax rate for the base fiscal year of such public corporation when adjusted to reflect subsequent changes in the level of assessment, exceeded the tax rate for the fiscal year preceding the current fiscal year, such higher tax rate shall be used, and provided further that the amount subtracted pursuant to this paragraph shall be reduced by the total of any amounts paid or payable to any railroad company by a city on account of real property taxes levied by such city against exempt railroad real property for the current fiscal year in lieu of separately assessing such exempt railroad real property.4.
The amount of state assistance payable to the public corporation shall be fifty per cent of the difference in total taxes on railroad real property computed as provided in subdivision three of this section except that if the amount computed as provided in subdivision five of this section is greater, state assistance shall be paid in such greater amount.5.
a. Calculate the sum of the following three amounts: (1) The result of applying the tax rate for the fiscal year preceding the current fiscal year to the amount by which the railroad ceiling for such preceding year exceeded the railroad ceiling for the current fiscal year after the ceiling for the current fiscal year shall have been adjusted to eliminate the effects of the changes, if any, in the level of assessment on the assessment roll for which such ceiling was established and to reflect the same property which was included in establishing the ceiling for the preceding fiscal year; (2) The total amount of state aid received or receivable by the public corporation for the fiscal year preceding the current fiscal year pursuant to this section; and (3) An amount which will limit the tax rate increase in any year for a public corporation to two per cent where such increase would result from the exemption of railroad real property pursuant to the provisions of titles two-a and two-b of the real property tax law, and(i)
the acquisitions of real property by the state or an agency of the state, or(ii)
reductions in assessments on taxable state-owned lands, or (iii) both (i) and (ii). All terms used in this paragraph which are not otherwise defined in this section shall have the same meaning as set forth in section five hundred forty-five of the real property tax law.b.
Subtract from the sum calculated in paragraph a of this subdivision two per cent of the total amount of taxes levied by or on behalf of the public corporation for the fiscal year preceding the current fiscal year.c.
Whenever the result of the subtraction provided for in paragraph b of this subdivision exceeds the amount of state aid which would be paid to the public corporation pursuant to subdivision three of this section, the public corporation shall be entitled to the amount of state aid calculated pursuant to this subdivision notwithstanding that the levy of taxes for the base fiscal year of such public corporation on railroad real property did not exceed either one hundred thousand dollars ($100,000) or two per cent of the total amount of taxes levied against all real property by or on behalf of such public corporation.6.
During the state fiscal year commencing April first, nineteen hundred seventy-eight, the chief fiscal officer of a public corporation entitled to state assistance under this section shall make application for such assistance to the state board. Whenever in a city with a population of one hundred twenty-five thousand or more no separate school district tax rate is determined and used in levying and extending school taxes, the chief fiscal officer of such city shall file one application which shall contain consolidated information and data with respect to taxes levied by or on behalf of such city and city school district. The application shall be made on a form approved by such board and shall contain such information as the board shall require. For the purpose of the application, the assessor of each assessing unit shall supply the necessary information to the chief fiscal officer of any public corporation for which taxes have been levied within the assessing unit. The application shall be made within three months after the commencement of the first fiscal year of such public corporation commencing on or after April first, nineteen hundred seventy-eight or within ninety days of the effectiveness of the provisions of this subdivision as last amended whichever last occurs. Upon approval by the state board of the application made pursuant to this subdivision and, upon computation and certification by the state board to the comptroller of the amount of state assistance payable to each public corporation pursuant to this section, such state assistance shall be apportioned and paid to such public corporation on audit and warrant of the comptroller out of moneys appropriated by the legislature for state assistance to public corporations in which railroad real property is partially exempt from taxation.7.
Notwithstanding any other provisions of this section or of any other law, state assistance shall be payable under this section to any public corporation in which certain railroad real property would be exempt from taxation under title two-a and title two-b of article four of the real property tax law but for the provisions of subdivision two of section four hundred eighty-nine-d of such law, in the same amount for which such public corporation would have qualified if such exemption had been effective, provided, however, that if such public corporation at any time receives any of the taxes which were levied against such railroad real property as a result of the applicability of said subdivision two of section four hundred eighty-nine-d, the public corporation shall notify the state board of equalization and assessment of the amount of taxes so received and shall repay to the state an equitable share of the taxes so received. For purposes of this subdivision, “equitable share of the taxes so received” shall mean an amount determined by such board equal to the difference between the aggregate state assistance paid to such public corporation pursuant to this subdivision and the aggregate state assistance which would have been payable to such public corporation if the taxes so received had been taken into account in computing the aggregate state assistance payable pursuant to this section.8.
a. Notwithstanding any other provision of this section or of any other law, any public corporation in which is located any real property (1) with respect to which the metropolitan transportation authority or any subsidiary corporation of that authority is entitled to tax exemption pursuant to section twelve hundred seventy-five or twelve hundred sixty-six, subdivision five, of the public authorities law, and (2) which constitutes railroad facilities as defined in subdivision ten of section twelve hundred sixty-one of such law and (3) which is used for transportation purposes, shall be entitled to apportionment and payment of state assistance under the foregoing subdivisions of this section in the same manner and to the same extent as if such real property were railroad real property exempt from taxation pursuant to title two-b of article four of the real property tax law, except in making such computations, the state board of equalization and assessment shall use an exemption factor of one hundred percent. In the case of such property of a railroad which was exempt from taxation pursuant to section four hundred seventy-six of the real property tax law for fiscal year commencing on or after July first, nineteen hundred fifty-four, the state board shall determine the total amount of taxes which would have been levied but for the provisions of titles two-a and two-b of article four of the real property tax law, by or on behalf of such public corporation on account of the transportation property of such railroad for the current fiscal year by: (1) ascertaining the amount of taxes finally determined to be payable on such property for the first fiscal year in which such property qualified for an exemption under section four hundred seventy-six of the real property tax law adjusted for any such property retired or otherwise disposed of, (2) multiplying the amount so computed for each such corporation by three, and (3) further adjusting the result by the ratio which the tax rate for such public corporation for the fiscal year next preceding the first fiscal year for which the aid is to be paid pursuant to this subdivision bears to the tax rate adjusted for changes in level of assessment for such public corporation in the first fiscal year for which such property qualified for exemption under section four hundred seventy-six of the real property tax law. The result of such computation shall be used as prescribed in paragraph b of subdivision three of this section.b.
For the first fiscal year for which state aid is paid pursuant to this subdivision, the amount of aid shall be equal to one hundred percent of the amount computed pursuant to this section, and each succeeding fiscal year thereafter such amount shall be reduced by an amount equal to three percent of the amount payable for the first year for which state aid is paid pursuant to this subdivision.9.
Notwithstanding any other provision of this section, the amount of state assistance payable to a public corporation pursuant to this section in the state fiscal year commencing on April first, nineteen hundred seventy-eight shall be the amount of state assistance that was paid to such public corporation in the state fiscal year commencing on April first, nineteen hundred seventy-seven. Upon ascertainment of state assistance payable, pursuant to this subdivision, such state assistance shall be apportioned and paid to such public corporation on audit and warrant of the comptroller out of moneys apportioned by the legislature.10.
Notwithstanding any inconsistent provision of this section or other law, the provisions of this section shall remain in force and effect only until March thirty-first, nineteen hundred seventy-nine. * NB Expired March 31, 1979
Source:
Section 54-B — State assistance to certain public corporations in which railroad real property is partially exempt from taxation, https://www.nysenate.gov/legislation/laws/STF/54-B (updated Sep. 22, 2014; accessed Apr. 20, 2024).
