Gov. David Paterson and legislative leaders announced Wednesday that federal stimulus funds will allow them to eliminate proposals to enact or raise a series of taxes and fees covering everything from music downloads to sugar-filled drinks.

Paterson joined Assembly Speaker Sheldon Silver and Senate Majority Leader Malcolm Smith at an Albany news conference to make the announcement late Wednesday morning.

The state leaders say the funding will allow them to eliminate many of the dozens of taxes and fees in Paterson's mid-December budget proposal. The idea to increase taxes on certain leisure items came about as a way to help deal with the state's projected $14 billion deficit.

But now Paterson says $11 billion is on its way to New York through President Barack Obama's economic stimulus package, so increasing state taxes on those leisure items is no longer necessary.

AP wire services were used in this report.

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