It may soon cost more for that "Coke and a smile" touted in the 1970s commercials if a proposed change in the 2010-11 New York State budget comes to fruition.

Gov. David A. Paterson aims to cut obesity - and increase state revenue for its health programs – by including an 18 percent sales tax on sugared beverages such as soda.

Specifically the excise tax on beverage syrups and soft drinks would be imposed at a rate of $7.68 per gallon for syrups and $1.28 per gallon for bottled soft drinks and powders. For consumers, this translates into approximately one penny per ounce of certain beverages and exempts dietary aids, infant formula, and milk.

Paterson calculated that the tax would reduce consumption by five percent.

While the budget also proposes other tax increases, including a cigarette excise tax, the one aimed at beverages has attracted much attention.

"By the calculations we've done her, the proposal would basically put a tax on a 12-pack of non-alcoholic beverage (soda)," said Christopher Gindlesperger, Communications Director, American Beverage Association in Washington, DC. "Basically, it touches on everything people like to drink."

Westchester County requires chain restaurants to display the calorie content of their menus despite the trend to "super-size" portions.

Rich Merritt grew up during the Pepsi Generation (a 1960s ad campaign for Pepsi-Cola, distributed by Purchase-based PepsiCo. Inc.) and said it (tax) won't affect him.

"It's the same as when kept raising the prices of cigarettes," said Merritt. "People didn't stop smoking, and they'll keep drinking soda. A few cents more won't make a difference to me."

A few people, like Chris Johnson of Sleepy Hollow, thought the tax was only on diet sodas.

"Or is it for regular soda and not for diet soda?" she asked. "I'll still buy it either way."

Ken Jenkins, Chairman of the Westchester Board of Legislators, said he was concerned that a beverage tax might result in companies leaving Westchester County for neighboring Connecticut.

"If PepsiCo leaves Somers, it's not just an impact on the number of jobs, their tax base is obliterated with one corporation at that size," he said.  "It's a huge threat."

Larry Jabbonsky, Vice President of Public Affairs for PepsiCo Beverages North America, declined to comment when asked if the company would relocate should the proposed tax be realized.

Instead, he deflected this question, and an inquiry about what impact the tax would have on suppliers and consumers, to Gindlesperger.

The latter acknowledged consumers, and businesses, will bear the financial brunt.

"It's a horrible time for people who are living paycheck to paycheck," Gindlesperger said, citing the double-digit unemployment, not only in New York State but across the country. "A (beverage) tax does threaten thousands of jobs, and the industry is clearly opposed."