Coalition Urges NY Governor to Scrap 75% 'Bro Tax' on Nicotine Pouches

Business leaders, store owners, and former law enforcement warn the tax will fuel organized crime and harm lower-income communities

Published on Mar. 11, 2026

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A growing coalition of business leaders, convenience store owners, and former law enforcement officers is urging New York Governor Kathy Hochul to reverse a proposed 75% excise tax on nicotine pouches such as Zyn, Velo, Rogue, and On. Critics argue the 'bro tax' will push adult smokers back toward traditional cigarettes, widen the price gap between licensed and unlicensed sellers, and disproportionately burden low-income New Yorkers.

Why it matters

The proposed tax is part of Hochul's Fiscal Year 2027 executive budget, with the goal of generating up to $57 million annually for the state's Health Care Reform Act fund. However, critics warn it could have unintended consequences, including fueling organized crime and harming public health by making nicotine pouches less accessible as a smoking alternative.

The details

Under the plan, tobacco-free nicotine pouches would be taxed at the same 75% wholesale rate that has applied to traditional tobacco products in New York for over a decade. Business groups argue this will nearly close the price gap between nicotine pouches and cigarettes, eliminating a key financial incentive for smokers to switch to a less harmful alternative. They also warn the tax will widen the price difference between licensed stores and unlicensed sellers, who don't check IDs or pay taxes.

  • Governor Hochul's Fiscal Year 2027 executive budget includes the proposed 75% tax on nicotine pouches.
  • New York is required to legally finalize its budget before April 1, 2026.

The players

Kathy Hochul

The Governor of New York who is proposing the 75% excise tax on nicotine pouches.

Edgar Domenech

A former New York City Sheriff who is part of the coalition opposing the tax, warning it will fuel organized crime and harm lower-income communities.

Alison Ritchie

The president of the New York Association of Convenience Stores, who says the tax will 'widen the price gap between licensed stores and unlicensed sellers, who don't check ID and don't pay taxes.'

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What they’re saying

“Don't tax the problem. That's not going to solve your issue.”

— Edgar Domenech, Former New York City Sheriff (News10)

“The tax would 'widen the price gap between licensed stores and unlicensed sellers, who don't check ID and don't pay taxes.'”

— Alison Ritchie, President, New York Association of Convenience Stores (NY Post)

What’s next

New York is required to legally finalize its budget before April 1, 2026, so the fate of the proposed 75% 'bro tax' on nicotine pouches will be determined in the coming weeks.

The takeaway

This debate highlights the complex tradeoffs between public health, consumer choice, and fiscal policy. While the tax aims to raise revenue and discourage youth vaping, critics argue it could backfire by pushing adult smokers back to traditional cigarettes and fueling the black market, ultimately harming the very communities it seeks to protect.