With no binding federal rounding rules in place, states are taking action to fill the regulatory vacuum. Florida's SB 1074 passed committee, New York introduced the 'New Yorkers for Common Cents Act,' Washington filed HB 2334, and Connecticut municipalities are adopting local policies. The patchwork of state approaches creates compliance challenges for multi-state retailers.
As the penny fades from American commerce, states are stepping into the policy void left by the federal government, creating a patchwork of rounding rules that businesses must navigate.
The Federal Vacuum
While the U.S. Treasury Department issued guidance in December 2025 recommending symmetrical rounding for cash transactions, the guidance is explicitly non-binding. This has left businesses without legal certainty and exposed to potential litigation over their rounding practices.
"Treasury's FAQ is helpful, but it's just a recommendation," said Craig Johnson, Executive Director of the Streamlined Sales Tax Governing Board. "States will need to ensure that any rounding rules don't create discrimination issues between cash and electronic transactions."
State-by-State Action
Florida
SB 1074 passed the Senate Commerce and Tourism Committee without debate or amendment. Sponsored by Senator Don Gaetz, the bill establishes symmetrical rounding rules mirroring Treasury recommendations.New York
The "New Yorkers for Common Cents Act" (Senate Bill 8580 and Assembly Bill 9274) would require merchants to round cash purchases to the nearest five cents. New York's cash acceptance law, effective 2026, adds complexity by prohibiting businesses from charging higher prices to cash customers—including through unfavorable rounding.Washington
HB 2334, introduced by Rep. April Berg, establishes clear rounding rules as the 2026 legislative session began. The bill follows the symmetrical rounding approach (1,2,6,7 down; 3,4,8,9 up).Connecticut
While no state-level action has occurred, municipalities are taking matters into their own hands. Bristol adopted a local penny rounding policy on January 14, 2026, for city hall transactions including taxes, permits, and fees.The Multi-State Challenge
For retailers operating across state lines, the emerging patchwork creates compliance headaches:
- Different rounding rules - Some states may require rounding down only, others symmetrical
- Cash acceptance laws - 11 states plus DC have laws that could interact with rounding policies
- Tax implications - States differ on whether rounding affects sales tax calculations
- Disclosure requirements - Varying rules on how businesses must inform customers
Industry Calls for Federal Action
Retail associations continue pushing for the Common Cents Act (H.R. 3074 / S. 1525) to establish uniform national standards.
"Without federal legislation, we're heading toward 50 different sets of rules," said a National Retail Federation spokesperson. "That's not workable for businesses or fair to consumers."
What's Next
Several additional states are expected to introduce rounding legislation as their 2026 sessions progress. The Streamlined Sales Tax Governing Board is also developing model language that member states could adopt for consistency.