N.Y. Tax Law § 1561: Imposition of tax

§ 1561. Imposition of tax. Notwithstanding any other provisions of law

to the contrary, any designated community, acting through its governing

body, is hereby authorized and empowered to adopt a local law imposing

in such designated community a tax on each conveyance of real property

or interest therein where the consideration exceeds five hundred

dollars, at a rate of up to two percent of the consideration for such

conveyance; any such local law shall fix the rate of such tax. Provided,

however, any such local law imposing, repealing or reimposing such tax

shall be subject to a mandatory referendum pursuant to section

twenty-three of the municipal home rule law. Such local law shall only

be submitted for the approval of the electors at a November general

election. In addition to the filings required pursuant to article three

of the municipal home rule law, the local law shall be filed with the

commissioner within twenty days of its approval by the electors.

Notwithstanding the foregoing, prior to adoption of such local law, the

designated community must establish a community preservation fund

pursuant to section six-s of the general municipal law. Revenues from

such tax shall be deposited in such fund and may be used solely for the

purposes of such fund. Such local law shall apply to any conveyance

occurring on or after the first day of a month to be designated by such

governing body, which is not less than sixty days after the enactment of

such local law, but shall not apply to conveyances made on or after such

date pursuant to binding written contracts entered into prior to such

date, provided that the date of execution of such contract is confirmed

by independent evidence such as the recording of the contract, payment

of a deposit or other facts and circumstances as determined by the

treasurer.