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Kennebunk adopts penny policy to round cash transactions amid coin phase-out
Summary
The Select Board adopted a Penny Policy to round cash transactions to the nearest five cents for most in-person payments following cessation of penny production, exempting statutorily set fees such as taxes and excise. The policy is effective May 26, 2026.
The Kennebunk Select Board voted May 26 to adopt a town Penny Policy for cash transactions, following guidance after the federal government ceased production of the penny in November 2025.
Finance Director Kayla Tierney told the board that the Maine Municipal Association recommended adopting a consistent local policy while pennies remain legal tender but are effectively unavailable through banking channels. Under the policy, cash payments will be rounded to the nearest five cents for most transactions; the policy exempts transaction types specifically set by statute, including real estate and personal property taxes, liens, vital records, dog licensing, motor vehicle and boat excise taxes, and plumbing permit fees.
Tierney said most fees affected would be small because many town fees are set by the state and thus already exempt. The Finance Subcommittee recommended adoption. Lisa Pratt moved to adopt the Penny Policy effective May 26, 2026; Karen Plattes seconded the motion, and the board approved it by show of hands.
