California lawmakers agreed in Friday's final night of the session to give online giant Amazon.com and other Web retailers a reprieve from collecting sales taxes while they lobby Congress for a national approach.

Under an agreement now on its way to Gov. Jerry Brown, the state would delay sales tax collection until September 2012. For its part, Amazon would suspend efforts to repeal California's law at the ballot box.

Brown has not indicated whether he will endorse the plan, and others are skeptical that Congress would sign off on an Internet sales tax law.

"This bill represents a truce among the major players involved in this," said Assemblyman Chris Norby, R-Fullerton. "A truce is not a peace treaty, but it's better than war."

Brown's top priority, a $1 billion package that raises taxes on out-of-state corporations to provide breaks for California-based taxpayers, appeared headed for defeat late Friday. Brown had cast the proposal as a job creation measure as California struggles with a 12 percent unemployment rate.

Brown issued a statement expressing his disappointment. "It's unbelievable that so many politicians in Sacramento would choose to protect cigarette makers and out-of-state corporations to the detriment of California jobs," he said.

Amazon struck a handshake deal on the tax-collection pause with brick-and-mortar retailers Wednesday evening, but the two sides disagreed Thursday over whether the online retailer could open distribution centers in California without collecting tax over the next year.

Amazon wanted "safe harbor" protection through September 2012 should it build facilities in California, but the parties couldn't agree on that legal protection.

AB 155 does not provide that cover for Amazon, but Assemblyman Charles Calderon, D-Whittier, said legislative leaders agreed to revisit the matter in January. Opening distribution centers in California would establish a clearer "nexus" that forces Amazon to collect sales taxes.

Brown said last week he was concerned about an earlier version of the Amazon bill because it would preclude collection of more than $200 million in sales tax revenue.

State officials believe Amazon and other retailers were supposed to start collecting sales taxes in July under a previous budget bill, but they have not done so.

"When he sees (AB 155), he's going to see the wisdom of supporting it because if he doesn't, the referendum goes forward, lawsuits are filed and at issue is whether a budget bill can be referended," Calderon said.

Democratic lawmakers also were expected to approve an eleventh-hour plan to force all initiatives onto general-election ballots, where turnout is higher and generally more beneficial to Democrats. Senate Bill 202 is backed by labor groups, whose immediate aim is defeating an anticipated 2012 initiative that would impede collection of union dues for political purposes.

SB 202 would move that "paycheck protection" initiative from June to November 2012, when Democrats are expected to vote in higher numbers with the presidency on the line. It would also delay until 2014 a "rainy-day fund" measure, also opposed by unions, that limits state spending growth.

With a Democrat in the governor's chair for the first time since 2003, labor unions have been particularly aggressive in pushing legislation this month. Lawmakers also sent Brown a proposal that enables home-based child care workers to unionize, AB 101.

Brown made a final push this week for a $1 billion change that benefits in-state companies by closing a tax break that was part of the 2009 budget deal. The proposal, AB 1X 40, would have forced companies to base their California taxation on their share of sales here. Current law allows out-of-state firms to choose a different formula that results in lower taxes because they don't have much property or employees in California.

In turn, the bill sought to give tax breaks to small businesses, manufacturers and individual tax filers who do not itemize their deductions, such as renters or retirees who have no mortgage payments. In-state companies pushed for the measure not only for its sales tax break on manufacturing equipment, but also because it hurts out-of-state competitors.

Brown struck a deal with the Assembly this week, but votes in the Senate remained elusive. Senate Republican Leader Bob Dutton, R-Rancho Cucamonga, called for an extended session that would provide more time to debate the proposal.

The last-day flurry also included these actions:

• Lawmakers approved Senate Bill 292, which provides a judicial express lane for a downtown Los Angeles NFL stadium. The bill shortens the environmental approval process for a $1.3 billion project envisioned by Anschutz Entertainment Group, which owns and operates the Staples Center.

• A companion measure to create a similar fast track for large projects worth at least $100 million was also sent to the governor. Assembly Bill 900 would apply to clean energy sites, as well as sports and cultural buildings – such as a downtown Sacramento arena – that receive a high LEED score from the U.S. Green Building Council.

• Brown got a bill that would make it a crime to openly carry an unloaded handgun in public. Assembly Bill 144 by Assemblyman Anthony Portantino, D-La Cañada Flintridge, targets the "open carry" movement, marked by gatherings of people displaying their firearms in public places to protest gun-control laws.

The bill language exempts peace officers, military gatherings, gun shows and hunting.

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Call Kevin Yamamura, Bee Capitol Bureau, (916) 326-5548.