Amazon, lawmakers reach a deal

September 7, 2011 12:00:00 AM PDT
Amazon and legislative leaders have reached a deal.

It avoids a referendum battle and gives the company until September 2012 before it has to start collecting sales tax on purchases made in California.

A new state law mandated that Amazon gather sales taxes starting this past July.

Instead, Amazon has poured millions into collecting signatures for a referendum challenging the law.

That ballot measure s now on hold and the deal will apparently be announced tomorrow.