Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance Policy topic
No spam. Unsubscribe anytime.
Davidson County staff to draft penny-rounding policy after commissioners raise legal questions
Summary
County staff were directed to research and return with a policy for handling penny shortages and rounding for in-person cash payments; commissioners discussed options including requiring exact change, rounding to the nearest nickel, or adopting a consistent rounding rule for retail and tax payments. Legal constraints on tax collections were cited.
Davidson County commissioners instructed staff on Nov. 24 to research and draft a county policy for handling penny shortages, after staff reported difficulty securing pennies for cash drawers and commissioners raised statutory questions about accepting underpayments or applying rounding to tax bills.
County staff said some departments are already encountering practical limits in obtaining pennies from banks and that several local governments are exploring consistent rounding rules. Commissioners discussed three basic options summarized from School of Government guidance: require exact cash for in-person retail transactions; round up to the nearest nickel for cash payments; or round down and treat the small underpayment as written off. Staff noted the law treats tax underpayments differently when not paid in person and advised the board to authorize a formal policy or resolution before changing practice.
Several commissioners emphasized fairness and the need for legal certainty. The county manager and county attorney said they would review statutory constraints (including the Machinery Act and related state rules) and return with a proposed resolution or policy, and staff will consult department heads about software and payment-platform constraints.
What happens next: staff will examine statutory restrictions and departmental software, draft a consistent policy and present options to the board at a later meeting.
