New York Governor Kathy Hochul has proposed a significant tax expansion that could drastically increase the cost of alternative nicotine products. As part of her Fiscal Year 2027 Budget, Hochul plans to reclassify items like nicotine patches, pouches, and gums as "tobacco products," subjecting them to a hefty 75% wholesale tax.
Key Takeaways
- 75% Tax Hike: Nicotine alternatives (pouches, gum, patches) will face the same 75% wholesale tax as tobacco.
- Consumer Cost: Retail prices are expected to rise sharply as businesses pass the wholesale cost to buyers.
- Budget Gap: The move aims to offset a $10.3 billion drop in federal funding.
- Vape Tax: The proposal also includes new taxes on vaping products and increased lobbyist fees.
The "Tobacco" Redefinition
Examining the legislative text reveals a strategic pivot: the state is broadening the legal definition of "tobacco products" to capture the growing market of smoke-free alternatives. This policy shift is driven by a need to plug a massive budget hole, with State Operating Funds increasing to $157.6 billion to compensate for lost federal revenue. While intended to raise funds, critics argue this could penalize smokers trying to quit by making cessation tools like patches and gum significantly more expensive.
When will prices go up?
If the budget passes as proposed, these changes would take effect in the Fiscal Year 2027 cycle. Consumers should watch the legislative session closely for approval dates.
Digital Content Creator & Vape Industry Analyst
Jake Miller is a prominent voice in the American vaping community, known for his transparent, tech-focused approach to harm reduction and hardware innovation. With over six years of experience in the industry, Tyler transitioned from a hobbyist to a full-time content creator, building a loyal following through his unfiltered reviews and deep-dive technical tutorials.