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State tackles penny-rounding policies amid national shortage
Indiana's new law will mandate penny-rounding rules for cash transactions starting in 2027, potentially costing up to $3.5 million in annual sales tax revenue, officials say.
- Indiana lawmakers are moving to set penny-rounding rules as the House Ways and Means panel heard amendments to Senate Bill 243 last week, with Sen. Travis Holdman adding three provisions.
- In November, the U.S. Mint struck its final non-ceremonial penny, ending a 232-year run, while the U.S. Treasury and Mint estimates of pennies in circulation differ sharply at 114 billion and 300 billion.
- Merchants would calculate sales tax on unrounded totals then round tax amounts down to the nickel, point-of-sale systems will require reprogramming, and totals ending in 1, 2, 6 or 7 cents round down while 3, 4, 8 or 9 cents round up.
- The State Budget Agency warns of $1.8 million to $3.5 million in potential annual sales-tax losses and estimates state agencies could lose $60,000 to $120,000 with cash over 40% of transactions on state parks.
- The U.S. Treasury and the National Conference of State Legislatures advised last-step rounding and split-tender guidance, Utah published a business guide, and businesses say the 2027 start is too far out.
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WFFT FOX 55 Fort Wayne+3 Reposted by 3 other sources
State tackles penny-rounding policies amid national shortage
Indiana lawmakers are crafting statewide penny-rounding policies as Hoosier retailers struggle through a nationwide shortage of the discontinued coin — but admit it needs more work. State revenues could also suffer.
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Total News Sources10
Leaning Left5Leaning Right2Center3Last UpdatedBias Distribution50% Left
Bias Distribution
- 50% of the sources lean Left
50% Left
L 50%
C 30%
R 20%
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