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Senate committee backs guidance allowing merchants to round cash transactions as pennies disappear
Summary
Senators voted to send S 1350 to the floor with a do-pass recommendation after testimony from retail groups seeking official guidance for cash rounding now that the U.S. Treasury has stopped minting pennies; lawmakers clarified sales-tax calculations would use the exact sale amount before rounding.
The Senate State Affairs Committee on March 6 recommended S 1350, a bill offering guidance to merchants on cash rounding, to the Senate floor with a do-pass recommendation.
Senator Ricks, sponsor, said the bill "would provide cash rounding guidance for merchants in response to the U. S. Treasury having stopped minting the penny" and that it would allow merchants to round up or down five cents. He clarified the measure would not require merchants to round prices but would offer a standard practice for cash transactions.
Pam Eaton, representing the Idaho Retailers Association and the Idaho Restaurant and Lodging Association, testified in favor, telling senators that members requested official guidance to standardize practices across industries and give merchants a reference when customers ask why their cash purchases were rounded.
Senator Shippy asked whether merchants might manipulate sales prices to lower sales tax; Senator Ricks responded that "the tax was to be calculated based on the exact penny amount on the final sale price, which was calculated before the rounding occurred." Senator Harris asked whether sales tax would rise if prices were rounded up; Senator Ricks said he did not think so because rounding would apply only to cash payments when pennies were unavailable.
The committee voted to send S 1350 to the floor with a do-pass recommendation.
