Section 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
  state board of real property services 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.