Assembly passes revenue bill after hours of debate over pied‑à‑terre tax, nicotine levy and power rebates

After extended floor debate, the Assembly approved the revenue implementing bill that incorporates a package of revenue and tax‑policy measures. Sponsor Gary Pratlow said the package would raise recurring and one‑time revenue to balance the enacted budget and support targeted investments such as utility rebate checks and healthcare stability fund allocations.

Key revenue provisions include: authorization for New York City to levy a surcharge on non‑primary residences with market values above $5 million (often referred to in debate as a "pied‑à‑terre" tax); an extension and reworking of the former managed‑care organization assessment to a 0.35% assessment on premium revenue applied more uniformly to secure federal matching dollars; and a 75% wholesale tax on alternative nicotine products (e.g., nicotine pouches), set to align taxation with combustible tobacco.

Sponsor and backers argued the measures help sustain Medicaid and other safety‑net programs and provide targeted assistance such as a $1 billion utility rebate (tiered by filer income) and enhanced child‑care tax credits. Opponents warned the nicotine tax is regressive, risks fostering illicit markets, and that extending temporary business tax rates undermines competitiveness and could discourage investment.

“It's a spending problem, not a revenue problem,” one critic said on the floor, while others defended the decision to raise revenue to protect essential services and hospitals. The transcript records multiple floor explanations of vote and recorded tallies for the revenue bill and accompanying appropriation measures; the rules report implementing the revenue bill passed on the floor.