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Are you sure that's all that's in your .emacs? Please check to see if you are referencing sage-command before you (require 'sage "sage"). Does the problem go away if you comment out the require? Another thing you might trying is completely deleting /Applications/sage/local/share/emacs and reinstalling. You can also run emacs --debug-init to see where exactly the error is occurring.

Please let me know what the problem was so that I can fix it if I need to (e.g. deleting the directory first). Also, feel free to open a ticket on bitbucket for this or any other issue.

There is also a new version sage_mode-0.9. Unfortunately, I'm having a difficult time getting it reviewed to upgrade the spkg so that's it installed by default.