A major new New York tax officially takes effect today, and it targets a product that has become extremely popular

As of Sept. 1, New York now imposes a 75 percent wholesale excise tax on alternative nicotine products like ZYN.

New York’s New Nicotine TaxGetty ImagesGetty ImagesGetty Images

Gov. Kathy Hochul’s office called nicotine pouches a “public health concern” when announcing the state is expanding the state’s existing 75 percent wholesale tax on tobacco products to include nicotine pouches, like ZYN, and other alternative nicotine products.

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“Alternative nicotine products are noncombustible products, other than vapor products, which contain nicotine but not tobacco and are intended for human consumption, whether chewed, absorbed, dissolved, or ingested by any other means,” the New York State Department of Taxation and Finance states.

Considered A Gateway Drug By Top New York OfficialGetty ImagesGetty ImagesGetty Images

The tax proposal was integrated directly into the broader state budget framework.

The New York State Budget Director, Blake Washington, called nicotine pouches a “gateway” drug. The tax is intended to address public health concerns, particularly regarding youth use, while also raising state revenue.

The maker of ZYN has criticized the plan, arguing that high taxes on smoke-free alternatives reduce the incentive for smokers to switch to less harmful products.

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