Amazon.com Inc is in a deal with legislators to avoid a ballot battle over the state's insistence that the online retailer collect state sales tax on purchases by Californians, the LA Times said.

Amazon would delay collecting taxes until September next year, the paper said, citing multiple sources directly involved in the matter.

An Amazon spokeswoman declined to comment on the LA Times report to Reuters.

Amazon spent $5 million in collecting signatures for a referendum challenging a new state law, which mandated that it collect fees starting this past July, LA Times said.

(Reporting by Gowri Jayakumar in Bangalore; Editing by Anshuman Daga)

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