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Governor David Paterson is refusing to abandon his proposal to tax sugary beverages, even though most lawmakers say it’s dead on arrival.

"Somebody said that the soda tax was dead because it hasn't been getting much support. I haven't said that," Paterson told reporters Thursday.

The governor is actually floating a new plan that would exempt diet sodas and bottled water while taxing higher calorie tea and coffee drinks.

"The price differential between these high calorie, high sugar drinks and the low calorie low sugar drinks will become even wider so we think consumers will be incentivized to make healthier choices," said New York State Director of Operations Valerie Grey.

Mayor Michael Bloomberg supports the revised plan, saying the governor was wise to reframe it and hopes lawmakers will take a fresh look at the proposal.

State Health Commissioner Richard Daines says it’s a chance for the beverage industry to capitalize on its healthier products and believes it could be a good compromise for lawmakers stuck between a rock and a hard place in budget talks.

"Something’s got to give," Daines said. "We think this is something all sides can give a little bit and we come up with healthier people, lower healthcare costs and still some revenue to close those budget gaps."

So far, lawmaker reaction to the new plan is not promising for the governor.

"I think other measures need to be found. I just cannot in good conscience support this tax on soft drinks and juices and other things," said Assemblyman Gary Pretlow.

In a statement, Senate Democrats responded by saying, "While we applaud the effort to reduce health risks, we want to provide New York's families with tax relief, not add to their burden."

Lawmakers say the votes are just not there, especially in the senate where at least two Democrats have spoken out publicly against the sugar tax and their statements used in widely circulated ads.

"Given the fact that no Republican is going to vote for the budget until all the Democrats do, so it’ll never happen," Pretlow said.

But not all lawmakers are ruling it out. Bronx Assemblyman Michael Benjamin says everyone won’t be satisfied in this budget and he’s willing to make compromises.

"I don’t like the sugar tax but I’m willing to do one quarter of it," Benjamin said.

The new proposal would still tax beverages that contain more than 10 calories per eight ounces, or a penny per ounce. It would raise more than $800 million in revenue rather than the billion dollars the original proposal would have brought in.