Citizen Portal
Sign In

Committee considers rounding rules for cash sales as pennies phase out

House Finance Committee · January 22, 2026

Loading...

AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

House Finance heard HB 2,334, which would require rounding cash transactions to the nearest five cents using specified rules and exempt non‑cash payments; retail and grocery groups generally supported the clarity but requested amendments for tax treatment, SNAP equal‑treatment and local ordinance conflicts; staff noted DOR estimates affecting about 400,000 taxpayers and one‑time expenditures for software and guidance.

House Finance took testimony on House Bill 2,334, a bill that sets a state standard for rounding cash transactions to the nearest nickel after the U.S. Mint ceased producing pennies. Committee staff Tracy Taylor told the committee that rounding applies to the transaction total — after taxes and fees — and only to payments made in legal tender. "Under House Bill 2,334, for purchases made by legal tender, if the total price ends in 1¢, 2¢, 6¢, or 7¢, the amount must be rounded down to the nearest 5¢," Taylor said, and added that non‑cash payments (for example, credit cards) would not be rounded.

Representative Berg, the bill's sponsor, described the proposal as asymmetrical rounding intended to create uniform rules for merchants as pennies fall out of circulation. "What I am proposing is that we do asymmetrical rounding," she told the committee, illustrating that a $9.01 cash purchase becomes $9.00 while a $9.03 cash purchase becomes $9.05.

Retail and grocery industry witnesses generally supported the bill for the clarity it would give merchants and point‑of‑sale systems but asked for clarifications: the Washington Retail Association sought an amendment to preserve tax obligations and a consumer‑protection safe harbor from lawsuits; the Washington Food Industry Association raised concerns about SNAP equal‑treatment rules and asked for guidance to avoid SNAP violations; grocery associations asked that rounding remain permissive as pennies persist and requested protections from conflicting local cash‑payment ordinances.

Staff confirmed in answer to committee questions that rounding is applied to the grand total tendered to the seller after taxes, not to individual items, and acknowledged the Department of Revenue fiscal note indicating department implementation costs. The committee closed the hearing and signaled staff follow‑up on DOR cost estimates.