Senate co-leader Dean Skelos (R-Rockville Centre) said the tax, known...

Senate co-leader Dean Skelos (R-Rockville Centre) said the tax, known as the "18-a" surcharge, was imposed on utilities in 2009 in the aftermath of a stock market meltdown. Credit: Steve Jacobs, 2010

"This surcharge was supposed to be temporary, and let's keep it that way," Skelos said at a State Capitol news conference, joined by several business lobby groups.

Cuomo's proposal would renew the surcharge for five years. Republicans said doing so would cost businesses and consumers nearly $3 billion, including $236 million in the fiscal year set to begin April 1.

"It's an extension beyond the expiration date," Skelos said of Cuomo's proposal. "So I think that's a new tax."

A Cuomo official said the administration "would be happy to" discuss how to replace the utility-tax revenue in the state budget.The proposal is part of Cuomo's $142.6 billion budget plan. Lawmakers hope to adopt a spending plan by March 21, before the fiscal deadline.

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