Retail groups back bill to round cash transactions as Treasury stops minting pennies
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Summary
Business groups told the Senate committee they support Senate Bill 6230 to round cash transactions to the nearest nickel after the Treasury announced it would cease producing new pennies; supporters asked for consumer protections and clarifications in the bill text.
The Senate Transportation Committee heard testimony in favor of Senate Bill 6230 on Feb. 5, a bill that would require cash transactions to be rounded to the nearest 5 cents following the U.S. Treasury's announcement it would cease minting new pennies.
John Kim, staff, said the Treasury advised states that rounding conventions would be permissible and the bill establishes precise rounding rules: totals ending in 1, 2, 6 or 7 cents round down and totals ending in 3, 4, 8 or 9 cents round up, with rounding applied after taxes, fees and discounts.
Business representatives told the committee they support the bill but want technical amendments to protect retailers and consumers. "The country is short on pennies," Amber Carter of the Washington Retail Association said, and asked that the bill include permissiveness, tax safe harbors and local preemption to avoid unintended losses to retailers. Molly Poffner of the Washington Food Industry Association echoed those points and said independent grocers and convenience stores are experiencing penny shortages.
Committee staff noted the Department of Licensing's fiscal note identified a one-time technology cost of about $186,000 that could be required to adjust systems for rounding conventions in some vehicle- and driver-fee collections, which is a reason the bill was referred to the Transportation Committee.
What happens next: The committee closed the public hearing; sponsors and business groups said they will continue to pursue technical amendments to ensure the bill does not "short change" retailers and consumers.