Nebraska committee hears bill to standardize cash rounding now that pennies are scarce

Sen. Mike Jacobson told the committee LB837 responds to a practical problem created after the federal government stopped minting pennies: merchants and banks lack consistent guidance for handling cash totals that do not divide by 5¢. "If the total is not a multiple of 5¢, the bill requires rounding to the nearest nickel," Jacobson said, and he emphasized the rule applies only to physical currency, not card or digital payments.

Industry groups including the Nebraska Bankers Association and the National Federation of Independent Business testified in support. Ryan McIntosh told members this is a revenue‑neutral measure that will give businesses and banks clearer budgeting expectations and avoid ad hoc rounding that can be confusing for consumers.

Rich Otto, representing the Nebraska Retail Federation and related trade groups, described amendment AM813, which permits either (1) rounding based on the transaction total (the original bill’s approach) or (2) rounding based on the change due. Otto explained the second method allows a customer who presents exact pennies to pay the precise amount rather than being forced into a rounded total; he also said the amendment clarifies how split transactions (card plus cash) should be handled so tax collection and point‑of‑sale programming function properly.

County officials and AARP‑aligned witnesses noted practical concerns for motor vehicle taxes and documentary stamp taxes collected in cash and flagged possible DMV programming needs. Committee members asked whether the law would preempt a future federal rule; sponsors said they expect to align with any federal policy if issued and that the state measure is intended to provide certainty now. The hearing closed with proponents asking the committee to advance the bill; no opposition testimony was recorded.