Senate Bill Report - SB 6230, Adjusting the Price of a Cash Transaction (As of January 27, 2026)

Summary

This Senate Bill Report on SB 6230 is dated as of January 27, 2026, and records Business, Trade & Economic Development committee activity on 1/28/26. The sponsors are Senators Frame and Stanford. The bill requires the total price of a cash transaction to be rounded to the nearest amount divisible by $0.05, applied after all applicable taxes, fees, adjustments, and discounts. The report states the rounding requirement does not apply to payments made by other methods and that the Department of Revenue must adopt rules for transactions made by a combination of legal tender and another form of payment. The background says the U.S. Treasury announced it would cease manufacturing new pennies.

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                             SENATE BILL REPORT
                                   SB 6230

                                      As of January 27, 2026

Title: An act relating to adjusting the price of a cash transaction to eliminate the need for
     pennies.

Brief Description: Adjusting the price of a cash transaction to eliminate the need for pennies.

Sponsors: Senators Frame and Stanford.

Brief History:
     Committee Activity: Business, Trade & Economic Development: 1/28/26.


                                     Brief Summary of Bill
           • Requires the total price of a cash transaction to be rounded to the nearest
             amount divisible by $0.05.
           • Specifies that rounding is applied after all applicable taxes, fees,
             adjustments, and discounts.


SENATE COMMITTEE ON BUSINESS, TRADE & ECONOMIC DEVELOPMENT

     Staff: John Kim (786-7453)

     Background: In 2025, the United States Department of the Treasury (U.S. Treasury)
     announced it would cease manufacturing new pennies and that the Federal Reserve will
     continue to recirculate the approximately 114 billion pennies currently in existence, but how
     long existing pennies will remain in circulation would depend largely on consumer
     behavior.

     The U.S. Treasury advised that retailers should continue accepting pennies and providing
     penny change for cash transactions while the coin remains in circulation. When penny
     change is not available, businesses may round the final amount of a cash transaction to the




     This analysis was prepared by non-partisan legislative staff for the use of legislative
     members in their deliberations. This analysis is not part of the legislation nor does it
     constitute a statement of legislative intent.

Senate Bill Report                              -1-                                             SB 6230
     nearest five-cent increment. The U.S. Treasury stated how states and localities will
     ultimately amend their sales tax laws is the right and responsibility of those jurisdictions.

     Summary of Bill: For purchases made by legal tender, if the total price ends in $0.01,
     $0.02, $0.06, or $0.07, the amount must be rounded down to the nearest $0.05. If the total
     price ends in $0.03, $0.04, $0.08, or $0.09, the total price must be rounded up to the nearest
     $0.05. This rounding requirement does not apply to payments made by other methods.

     The total price of a transaction means the final amount due and payable by the buyer for the
     purchase of any good, service, or other product, after all applicable taxes and fees are
     applied as well as any adjustments or discounts are made by the seller.

     For example, for cash transactions with a total price ranging from $1.00 to $1.10:

                      Total price              Rounded price to nearest $0.05
                      $1.00                    $1.00 (not rounded)

                      $1.01                    $1.00

                      $1.02                    $1.00

                      $1.03                    $1.05

                      $1.04                    $1.05

                      $1.05                    $1.05 (not rounded)

                      $1.06                    $1.05

                      $1.07                    $1.05

                      $1.08                    $1.10

                      $1.09                    $1.10

                      $1.10                    $1.10 (not rounded)


     The Department of Revenue must adopt rules for transactions that made by a combination
     of legal tender and any other form of payment.

     Appropriation: None.

     Fiscal Note: Available.




Senate Bill Report                             -2-                                         SB 6230
     Creates Committee/Commission/Task Force that includes Legislative members: No.

     Effective Date: Ninety days after adjournment of session in which bill is passed.




Senate Bill Report                            -3-                                        SB 6230


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