On July 23, 2025, the Common Cents Act passed out of the House Committee on Financial Services on a bipartisan basis. The act proposes the following rounding practices for cash transactions only: • If the price ends in $0.01, $0.02, $0.06, or $0.07, round down to the nearest $0.05. • If the price ends in $0.03, $0.04, $0.08, or $0.09, round up to the nearest $0.05. • If the price is exactly $0.01 or $0.02, round up to $0.05.2 However, further consideration is required before the act can be advanced for floor votes.3 In the meantime, Treasury recognizes that “states will approach this issue differently based on unique considerations” and indicates “businesses should apply rounding practices in a fair, consistent and transparent manner.” Business Impacts While the penny still remains legal tender, businesses are expected to choose between several options to reflect this change: choosing to round cash transactions to the nearest nickel, requiring exact change (though the ability to do this will be limited as fewer pennies are in circulation) or using credit card or digital transactions. The cessation of penny production and the resulting decrease in the number of pennies in circulation have implications for cash transactions for retailers selling taxable products. Several states have addressed the implications of this for sales and use tax purposes. In addition to the various administrative pronouncements, several states, including Arizona, Florida, Missouri and Nebraska, have pending legislation to address these issues. 1 “Penny Order and Deposit Information,” frbservices.com, 2026. 2 “The Penny May End in 2026,” commoncentsact.com, 2026. 3 Ibid. 23 NEBRASKA BANKER
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