engine - 2:53 pm on Sep 8, 2011 (gmt 0)

Amazon Strikes A Deal On California State Taxes [latimes.com]

Amazon.com cut a tentative deal with legislative leaders Wednesday night that would allow it to postpone collecting sales taxes from Californians for another year. The company in turn would drop its battle to overturn the state's new law that required it and many other out-of-state online retailers to collect the taxes.

"It's a safe harbor for up to a year," Calderon said of the agreement he helped strike. "If they can't get Congress to act by next July, then they will start to collect the tax in September 2012. If by chance they get Congress to act, then that would trump the state law."