Philip A. Palmesano, Assemblyman for New York’s 132nd District, said on March 6 that he opposes the state’s proposed tax on nicotine pouches, arguing it would raise costs for adults seeking smoke-free alternatives to quit cigarettes.
The proposed measure is part of Gov. Kathy Hochul’s Fiscal Year 2027 Executive Budget and would apply the existing 75% wholesale tobacco excise tax to tobacco-free nicotine pouches by categorizing them as “alternative nicotine products.” The state has framed this move as closing an untaxed loophole, but critics say it would treat lower-risk products like cigarettes and increase prices throughout the legal supply chain, according to Spectrum Local News.
“You have people that want to quit smoking, that have quit smoking and now this might be an option for them,” said Palmesano. “The proposal is going to make it more expensive for people who might want to get off cigarettes.”
Opponents of the tax point to New York’s history with cigarette smuggling. Tax Foundation data show New York has long struggled with cigarette tax avoidance and illicit trade; its 2022 estimate found that 54.3% of cigarettes consumed in the state were smuggled, the highest rate in the nation. Opponents of the nicotine pouch tax say that history matters: when legal products become dramatically more expensive, New York has repeatedly seen black-market sellers step in rather than public health goals being cleanly achieved.
Public policy groups have also weighed in against the proposal. The Reason Foundation argued that New York’s proposed 75 percent wholesale tax on nicotine pouches would undermine harm reduction by shrinking the price gap between cigarettes and lower-risk alternatives. Its February 26, 2026 testimony says research on safer nicotine substitutes shows that raising taxes on alternatives can discourage switching, increase cigarette sales, and reinforce the false idea that all nicotine products carry the same level of risk.
Opposition to this proposal has extended beyond lawmakers. Elizabeth Hicks, Head of External Affairs at the Consumer Choice Center, said nicotine pouches have been “unfairly vilified” despite their role in tobacco harm reduction and pointed to research estimating that if smokers had switched to nicotine pouches beginning in 2000, the U.S. could see roughly 700,000 fewer tobacco-related deaths by 2050, arguing these products offer a lower-risk alternative for adults trying to quit cigarette.
Palmesano has represented his district since first being elected in 2010 and was re-elected to his eighth term in 2024. According to his official Assembly biography, the district includes a majority of Steuben County, all of Schuyler and Yates counties, and parts of Chemung and Seneca counties.
