Penny Production Cessation FAQs - U. S. Department of the Treasury As pennies fall out of circulation, merchants will need to round transactions either up or down to the nearest five cents However, most states require sales tax to be calculated on the final sale price rounded to the nearest penny
Penny’s Death Should Drive States to Revamp Sales Tax Systems Sunsetting the penny has created a rounding mess for retailers who soon will have to round totals to the nearest nickel States should take this as an opportunity to modernize sales tax policy through e-invoicing and real-time enforcement—finally bringing point-of-sale systems into the 21st century
Phasing out the penny without clear rules: PwC While it is assumed that cash transactions would be rounded to the nearest five cents, no rounding rule to accommodate the elimination of the penny has been adopted by a government body
The penny’s end and the sales tax ripple effect | NATP Sales and excise taxes collected at the point of sale are the most exposed in a world without pennies These taxes are calculated in real time, and state tax authorities generally expect taxes to be computed on the exact taxable selling price Rounding should apply only to the final cash total
Rounding Up: The Impact of Phasing Out the Penny Without the penny, businesses would need to round cash transactions to the nearest 5 cents, potentially increasing the cost of a given consumption basket for U S consumers In this article, we quantify this rounding cost using the latest data from the Diary of Consumer Payment Choice (DCPC)
Elimination of the Penny: Cents-able Considerations As the production of pennies ceased and existing supplies dwindle, both sellers and buyers are facing or will soon face the need to round cash transactions to the nearest five cents, with the nickel assuming the role of the smallest denomination in circulation
How a stores dealing with elimination of pennies? – Deseret News Strategies include point-of-sale signage and entreaties to pay with exact change and, in some cases, rounding cash transactions in the customer’s favor for the time being to avoid customer friction and potential litigation risks