Washington State Introduces Bill to Establish Cash Rounding Rules as Penny Phases Out

Washington State Representative April Berg (D-Mill Creek) introduced House Bill 2334 on January 9, 2026, establishing clear rules for cash transactions as pennies phase out of circulation.

Bill Overview

HB 2334 creates a standardized approach to cash rounding that protects both consumers and businesses. The legislation follows the symmetrical rounding method recommended by the U.S. Treasury Department.

Rounding Rules Under HB 2334

The bill establishes the following rounding protocol for cash transactions:

Round DOWN to the nearest nickel when the total ends in:

• 1 cent (e.g., $5.01 → $5.00)
• 2 cents (e.g., $5.02 → $5.00)
• 6 cents (e.g., $5.06 → $5.05)
• 7 cents (e.g., $5.07 → $5.05)

Round UP to the nearest nickel when the total ends in:

• 3 cents (e.g., $5.03 → $5.05)
• 4 cents (e.g., $5.04 → $5.05)
• 8 cents (e.g., $5.08 → $5.10)
• 9 cents (e.g., $5.09 → $5.10)

Key Provisions

• Rounding applies only to cash transactions
• Electronic payments (credit, debit, mobile) remain exact to the penny
• Sales tax is calculated on the pre-rounded amount
• Businesses must clearly disclose rounding practices

Sponsor Statement

"With the federal government ending penny production, Washington consumers and businesses need clear, fair rules," said Rep. Berg. "This bill ensures that rounding is done consistently and fairly, so no one is systematically disadvantaged."

Legislative Timeline

• January 9, 2026: Bill introduced
• January 12, 2026: Washington 2026 legislative session began
• Status: Referred to committee for consideration

Why State Action Matters

While the U.S. Treasury issued voluntary guidance on rounding, it carries no legal force. States like Washington are stepping in to provide binding rules that give businesses legal certainty and consumers clear protections.

Sources

• HB 2334 Bill Text
• Washington State House Democrats Press Release