[title]
Following the U.S. Department of the Treasury’s decision to cease production of the penny late last year—a move prompted by a national coin shortage and production costs that soared to nearly 3.7 cents per coin—the New York State Legislature has taken decisive action. Late Wednesday, the State Senate gave final approval to the "New Yorkers for Common Cents Act," a statewide bill designed to phase out the use of the one-cent piece. Passing the Senate with a decisive 59-2 vote after clearing the Assembly 133-4 last month, the bill now heads to Governor Kathy Hochul, who has until the end of the year to sign or veto it.
Sponsored by Assemblymember John McDonald, an Albany-area Democrat, the legislation aims to give businesses and consumers clear direction in a post-penny marketplace. If enacted, the law’s rounding rules will take effect 180 days later, making New York one of the latest states to establish laws regarding penniless cash transactions. Five states—Arizona, Indiana, New Mexico, Tennessee and Utah—have enacted penny-elimination laws so far, while over 55 similar bills have been introduced nationwide to address federal inaction.
The legislation outlines a "symmetrical rounding" system based on guidance from the U.S. Treasury and the National Conference of State Legislatures. Under this system, cash transaction totals are rounded to the nearest five cents. Specifically, final totals ending in .01, .02, .06 or .07 are rounded down, while totals ending in .03, .04, .08 or .09 are rounded up. Totals ending in .00 or .05 remain unchanged. So if your total is $1.03, it's rounded up to $1.05. $1.08 is rounded up to $1.10. $1.01 is rounded down to $1.00, and $1.06 is rounded down to $1.05.
This rounding system only applies to cash payments. It exempts digital transactions, credit cards, debit cards, checks, electronic transfers and any transactions totaling $0.04 or less.
The bill protects both merchants and consumers by stating that sales taxes, both state and municipal, must be calculated on the original transaction amount before any rounding occurs. No additional tax will be applied to the minor financial gains or losses resulting from the rounding process, ensuring that state revenue remains protected while keeping daily commerce smooth and efficient.
You can read the bill yourself and follow progress here.