ALBANY (AP) -- The Paterson administration is trying to make its proposed soda tax more palatable by proposing an alternative that would simultaneously eliminate sales taxes on bottled water and low-calorie drinks.

The proposed penny per ounce tax on soda and sugary drinks with less than 70 percent fruit juice had been projected to generate $1 billion annually and reduce consumption of the drinks by 15 percent.

Health Commissioner Dr. Richard Daines says making the proposal revenue-neutral should quiet critics of tax increases and bottlers concerned about business while keeping the focus on reducing consumption and obesity.

New York City Mayor Michael Bloomberg, who backed the original measure, says Paterson "wisely reframed" it in response to lawmakers' concerns. He's urging them to take another look.

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