The state has a present $US 15.4 billion budget gap which is being attributed to a drop in the revenue raised from high-earning Wall Street financiers.
To make up the gap Governor Peterson wants legal downloaders of music to help cough up to the tune of an extra 4% on top of what they pay the iTunes Store and other providers.
This charge will also cover e-books and other "digitally delivered entertainment services" which includes videos and photographs.
The fee is contentious and is incurring the wrath of ordinary New Yorkers who resent the sting, although a precedent has been set with the state of New Jersey already imposing a similar charge.
Some sources say the tax will give further impetus for home users to abandon music stores in favour of BitTorrent and other per-to-peer download sites.
Other controversial and contentious taxes proposed include an 18% tax on non-diet fruit drinks with less than 7% natural fruit juice.