Senate Republican Leader Dean Skelos called Gov. Andrew Cuomo’s proposal to extend a surcharge on utility assessments a “tax increase” — a counter to the claim from the governor’s office that his $142.6 billion budget doesn’t include any tax hikes.

Cuomo’s budget would extend the surcharge — known commonly as the 18a assessment — for another five years. The tax is due to expire in March 2014.

Skelos and Senate Republicans today called the governor to let the tax expire in 2014, saying that the proposal is too costly on businesses. Including the assessment in this year’s budget would mean $236 million in revenue for the coming fiscal year.

“It’s an extension beyond the expiration date … I think it is a new tax,” he said.

However, the Long Island Republican would not say if he would vote down a budget that includes the extension.

“I don’t deal with what has to be in, what has to be out,” Skelos said. “Our conference has made a decision that this is critically important to eliminate it. This is part of the budget process and I feel confident we will be able to eliminate this from the budget.”

As we’ve written before, tax extensions as tax hikes are a matter of semantics and Cuomo’s proposed spending plan includes several re-authorizations.

Skelos at today’s news conference also called the proposal to increase the state’s minimum wage — also included in the governor’s budget plan — a possible hidden tax on businesses.

Cuomo wants to increase the state’s minimum wage from $7.25 to $8.75, starting July 1. Skelos has said he would like to see business tax cuts or credits to spur job creation, but didn’t want to say whether he’d trade the 18a assessment for the minimum wage hike.

“I think those are separate issues,” he said. “Whether it is last year or this year, our biggest concern is not enacting any programs that are counterproductive to job creation in New York state.”

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