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Davidson County asks staff to draft penny-rounding policy as coin production ends
Summary
Commissioners directed staff to research legal options and software impacts for rounding in-person cash payments (round up, round down or require exact change) after banks reported limited pennies in circulation; staff will return with a formal policy recommendation.
Davidson County commissioners on Monday directed staff to develop a formal policy addressing the growing difficulty of obtaining pennies for in-person cash transactions. The discussion followed staff reports that banks and cash-handling departments have encountered shortages as the U.S. mint winds down penny distribution.
Commissioners discussed three broad options: require exact payment for in-person cash by law; round in-person cash payments up to the nearest nickel; or round down (and write off a few cents) where law permits. Legal counsel and staff cited guidance from the School of Government and previous county practice: the board may adopt a consistent policy, but tax payments are governed by specific statutory rules and may require explicit board authorization or a narrow administrative policy for in-person cash transactions.
Staff said they would examine statutory constraints (including the machinery act references for tax collections), software limitations in inspection and health-department systems, and implementation logistics for consistent treatment across county departments. Commissioners asked staff to return a recommended policy (or a proposed resolution) and to include language for how to handle taxpayer requests to reclaim small overpayments during the fiscal year.
What happens next: Staff will research the legal framework and software changes needed, consult with the tax office and county legal counsel, and present a draft policy or resolution to the board for a future vote.
