Fiscal Note - 6230 SB, Cash Transactions/Pennies (Multiple Agency Summary, Preliminary 1/27/2026)

Summary

This is the Multiple Agency Fiscal Note Summary for 6230 SB, titled Cash transactions/pennies, with a Preliminary date of 1/27/2026. The Office of State Treasurer is listed as fiscal note not available, and the Department of Revenue note shows non-zero but indeterminate cost and/or savings. The local government section says, according to Washington Association of County Officials, local governments will need to revise or update billing software to incorporate the 5 cent rounding guideline, and that the expenditure impact is indeterminate. It adds that local governments will experience a loss or gain of up to 2 cents on each transaction when cash is accepted.

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“Fiscal Note - 6230 SB, Cash Transactions/Pennies (Multiple Agency Summary, Preliminary 1/27/2026).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2026-01-28-a33769-d293213-6230-sb-fn-partial-01-27-26-3f0456e236/, SHA-256 d752d7247980db7ab08bc3dc35d2aae813fd5871058e527763f23577a11700d8.

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Multiple Agency Fiscal Note Summary
Bill Number: 6230 SB Title: Cash transactions/pennies

Estimated Cash Receipts
Agency Name 2025-27 2027-29 2029-31
GF-State NGF-Outlook Total GF-State NGF-Outlook Total GF-State NGF-Outlook Total
Department of Non-zero but indeterminate cost and/or savings. Please see discussion.
Revenue

Total $ 0 0 0 0 0 0 0 0 0

Agency Name 2025-27 2027-29 2029-31
GF- State Total GF- State Total GF- State Total
Local Gov. Courts
Loc School dist-SPI
Local Gov. Other Non-zero but indeterminate cost and/or savings. Please see discussion.

Local Gov. Total

Estimated Operating Expenditures
Agency Name 2025-27 2027-29 2029-31
FTEs GF-State NGF-Outlook Total FTEs GF-State NGF-Outloo Total FTEs GF-State NGF-Outlook Total
Office of State Fiscal note not available
Treasurer
Department of 2.9 538,200 538,200 538,200 1.4 241,100 241,100 241,100 .8 135,000 135,000 135,000
Revenue

Total $ 2.9 538,200 538,200 538,200 1.4 241,100 241,100 241,100 0.8 135,000 135,000 135,000

Agency Name 2025-27 2027-29 2029-31
FTEs GF-State Total FTEs GF-State Total FTEs GF-State Total
Local Gov. Courts
Loc School dist-SPI
Local Gov. Other Non-zero but indeterminate cost and/or savings. Please see discussion.

Local Gov. Total

Estimated Capital Budget Expenditures
Agency Name 2025-27 2027-29 2029-31
FTEs Bonds Total FTEs Bonds Total FTEs Bonds Total
Office of State Treasurer Fiscal note not available

Department of Revenue .0 0 0 .0 0 0 .0 0 0

Total $ 0.0 0 0 0.0 0 0 0.0 0 0

FNPID: 75794

FNS029 Multi Agency rollup
Agency Name 2025-27 2027-29 2029-31
FTEs GF-State Total FTEs GF-State Total FTEs GF-State Total
Local Gov. Courts
Loc School dist-SPI
Local Gov. Other Non-zero but indeterminate cost and/or savings. Please see discussion.

Local Gov. Total

Estimated Capital Budget Breakout

Prepared by: Megan Tudor, OFM Phone: Date Published:
(360) 890-1722 Preliminary 1/27/2026

FNPID: 75794

FNS029 Multi Agency rollup
Department of Revenue Fiscal Note

Bill Number: 6230 SB Title: Cash transactions/pennies Agency: 140-Department of Revenue

Part I: Estimates
No Fiscal Impact

Estimated Cash Receipts to:
Non-zero but indeterminate cost and/or savings. Please see discussion.

Estimated Expenditures from:

FY 2026 FY 2027 2025-27 2027-29 2029-31
FTE Staff Years 0.2 5.6 2.9 1.4 0.8
Account
GF-STATE-State 001-1 22,900 515,300 538,200 241,100 135,000
Total $ 22,900 515,300 538,200 241,100 135,000

Estimated Capital Budget Impact:
NONE

The cash receipts and expenditure estimates on this page represent the most likely fiscal impact. Factors impacting the precision of these estimates,
and alternate ranges (if appropriate), are explained in Part II.

Check applicable boxes and follow corresponding instructions:
If fiscal impact is greater than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete entire fiscal note
X
form Parts I-V.
If fiscal impact is less than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete this page only (Part I).

Capital budget impact, complete Part IV.

X Requires new rule making, complete Part V.

Legislative Contact: William Bridges Phone:
360-786-7367 Date: 01/22/2026
Agency Preparation: Tom Gilmore Phone:
360-534-1559 Date: 01/23/2026
Agency Approval: Marianne McIntosh Phone:
360-534-1505 Date: 01/23/2026
OFM Review: Megan Tudor Phone:
(360) 890-1722 Date: 01/27/2026

Request # 6230-1-1
Form FN (Rev 1/00) 210,104.00 1 Bill # 6230 SB
FNS062 Department of Revenue Fiscal Note
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact
Significant provisions of the bill and any related workload or policy assumptions that have revenue or expenditure impact on the responding agency
by section number.

CURRENT LAW:
Businesses calculate sales and use taxes uniformly for all transactions, regardless of the payment method, based on the
selling price. Selling price means the total amount, valued in money, for which anything the law defines as a retail sale is
sold, leased, or rented.

PROPOSAL:
This bill defines a rounding mechanism that will apply only to cash transactions. This mechanism will adjust the
total price of any transaction (selling price plus all applicable sales taxes and fees, as well as any discounts or other
adjustments) to the nearest 5 cents. Totals ending in 1, 2, 6, or 7 cents will round down to the nearest 5 cents, and totals
ending in 3, 4, 8, or 9 cents will round up to the nearest 5 cents.

The Department of Revenue (department) must adopt rules for transactions made by a combination of legal tender and
other forms of payment.

EFFECTIVE DATE:
The bill takes effect 90 days after the final adjournment of the session.
II. B - Cash receipts Impact
Cash receipts impact of the legislation on the responding agency with the cash receipts provisions identified by section number and when appropriate,
the detail of the revenue sources. Description of the factual basis of the assumptions and the method by which the cash receipts impact is derived.
Explanation of how workload assumptions translate into estimates. Distinguished between one time and ongoing functions.

The revenue impact of this bill is indeterminate but minimal. Rounding applied to affected transactions may slightly
increase or decrease total collections.
II. C - Expenditures
Agency expenditures necessary to implement this legislation (or savings resulting from this legislation), with the provisions of the legislation that result
in the expenditures (or savings) identified by section number. Description of the factual basis of the assumptions and the method by which the
expenditure impact is derived. Explanation of how workload assumptions translate into cost estimates. Distinguished between one time and ongoing
functions.

ASSUMPTIONS:
This proposal affects 400,000 taxpayers.

Implementation of this legislative proposal will require additional tribal consultation. While the exact level of engagement
required is unknown, the department will incur costs for tribal consultation and will absorb them within current funding.

FIRST YEAR COSTS:
The department will incur total costs of $22,900 in fiscal year 2026. These costs include:

Labor Costs – Time and effort equate to 0.18 FTE.
- Create a special notice and update relevant information on the department’s website.
- As a part of implementing this legislation, the department will incur additional costs for engaging in tribal consultation,
and those costs will be absorbed within current funding.

SECOND YEAR COSTS:
The department will incur total costs of $515,300 in fiscal year 2027. These costs include:

Labor Costs – Time and effort equate to 5.63 FTEs.
Request # 6230-1-1
Form FN (Rev 1/00) 210,104.00 2 Bill # 6230 SB
FNS062 Department of Revenue Fiscal Note
- Amend one administrative rule.
- Process tax return work items, assist taxpayers with reporting questions, and respond to inquiries via email, web
message, and paper correspondence.
- Examine accounts and make corrections as necessary.
- Answer additional phone calls and counter inquiries from businesses, individuals, and accountants regarding tax
questions and tax return preparation.
- As a part of implementing this legislation, the department will incur additional costs for engaging in tribal consultation,
and those costs will be absorbed within current funding.

Object Costs - $12,400.
- Purchase four additional agent seat licenses for the Telephone Information Center.
- Printing and postage

THIRD YEAR COSTS:
The department will incur total costs of $162,600 in fiscal year 2028. These costs include:

Labor Costs – Time and effort equate to 1.9 FTEs.
- Continue to process tax return work items and examine accounts to make corrections as necessary.
- Continue to answer phone calls and counter inquiries on tax questions.

FOURTH YEAR COSTS:
The department will incur total costs of $78,500 in fiscal year 2029. These costs include:

Labor Costs – Time and effort equate to 0.9 FTE.
- Continue to process tax return work items and examine accounts to make corrections as necessary.
- Continue to answer phone calls and counter inquiries on tax questions.

ONGOING COSTS:
Ongoing costs for the 2029-31 biennium equal $135,000 and include similar activities described in the fourth-year costs.
Time and effort equate to 0.8 FTE each year.

Part III: Expenditure Detail
III. A - Expenditures by Object Or Purpose
FY 2026 FY 2027 2025-27 2027-29 2029-31
FTE Staff Years 0.2 5.6 2.9 1.4 0.8
A-Salaries and Wages 14,500 291,900 306,400 145,900 81,600
B-Employee Benefits 5,200 105,200 110,400 52,400 29,400
E-Goods and Other Services 2,500 95,800 98,300 40,300 22,600
J-Capital Outlays 700 22,400 23,100 2,500 1,400
Total $ $22,900 $515,300 $538,200 $241,100 $135,000

Request # 6230-1-1
Form FN (Rev 1/00) 210,104.00 3 Bill # 6230 SB
FNS062 Department of Revenue Fiscal Note
III. B - Detail: FTEs listed by classification and corresponding annual compensation. Totals agree with total FTEs in Part I and Part IIIA.

Job Classification Salary FY 2026 FY 2027 2025-27 2027-29 2029-31
EMS BAND 4 139,704 0.0 0.0
EMS BAND 5 163,205 0.0 0.0
EXCISE TAX EX 1 49,428 1.0 0.5 0.2 0.1
EXCISE TAX EX 2 61,639 0.5 0.3 0.2 0.1
EXCISE TAX EX 3 67,992 0.2 0.1 0.1
MGMT ANALYST4 80,822 0.0 0.0
TAX INFO SPEC 1 49,428 3.8 1.9 1.0 0.6
TAX POLICY SP 2 82,874 0.1 0.0 0.1
TAX POLICY SP 3 93,800 0.1 0.1 0.1
TAX POLICY SP 4 100,981 0.0 0.0
WMS BAND 2 100,662 0.0 0.0
WMS BAND 3 114,564 0.0 0.0
Total FTEs 0.2 5.6 2.9 1.4 0.8

III. C - Expenditures By Program (optional)
NONE

Part IV: Capital Budget Impact
IV. A - Capital Budget Expenditures
NONE

IV. B - Expenditures by Object Or Purpose
NONE

IV. C - Capital Budget Breakout

Acquisition and construction costs not reflected elsewhere on the fiscal note and description of potential financing methods.
NONE

Part V: New Rule Making Required
Provisions of the bill that require the agency to adopt new administrative rules or repeal/revise existing rules.

Should this legislation become law, the department will use the standard process to amend WAC 458-20-228, titled:
"Returns, payments, penalties, extensions, interest, stays of collection."

This rulemaking would affect merchants and individuals who accept/use legal tender for taxable transactions.

Request # 6230-1-1
Form FN (Rev 1/00) 210,104.00 4 Bill # 6230 SB
FNS062 Department of Revenue Fiscal Note
LOCAL GOVERNMENT FISCAL NOTE
Department of Commerce

Bill Number: 6230 SB Title: Cash transactions/pennies

Part I: Jurisdiction-Location, type or status of political subdivision defines range of fiscal impacts.
Legislation Impacts:
X Cities: cities accepting cash as a form of payment
X Counties: counties accepting cash as a form of payment
X Special Districts: special districts accepting cash as a form of payment
Specific jurisdictions only:
Variance occurs due to:

Part II: Estimates
No fiscal impacts.

Expenditures represent one-time costs:

Legislation provides local option:

X Key variables cannot be estimated with certainty at this time: which local governments accept cash as a form of payment, software
updates costs, policy updates
Estimated revenue impacts to:

Non-zero but indeterminate cost and/or savings. Please see discussion.

Estimated expenditure impacts to:

Non-zero but indeterminate cost and/or savings. Please see discussion.

Part III: Preparation and Approval
Fiscal Note Analyst: Tammi Alexander Phone: 360-725-5038 Date: 01/23/2026
Leg. Committee Contact: William Bridges Phone: 360-786-7367 Date: 01/22/2026
Agency Approval: Alice Zillah Phone: 360-725-5035 Date: 01/23/2026
OFM Review: Megan Tudor Phone: (360) 890-1722 Date: 01/27/2026
Page 1 of 2 Bill Number: 6230 SB
FNS060 Local Government Fiscal Note
Part IV: Analysis
A. SUMMARY OF BILL
Description of the bill with an emphasis on how it impacts local government.
This bill outlines a rounding system for businesses to use on cash transactions to adjust the total price to the nearest 5
cents. Totals ending in 1, 2, 6, or 7 cents will round down to the nearest 5 cents, and totals ending in 3, 4, 8, or 9 cents
will round up to the nearest 5 cents.
B. SUMMARY OF EXPENDITURE IMPACTS
Expenditure impacts of the legislation on local governments with the expenditure provisions identified by section number and when
appropriate, the detail of expenditures. Delineated between city, county and special district impacts.

There are several city and county departments that accept cash payments. These could include solid waste, building and
permitting, planning, public health, treasurer (tax payments), assessor (licensing, recording, etc.), all departments for
public records copying charges, courts (fines and fees), public works (permitting), parks (fees), and utilities like water
and sewer service.

According to Washington Association of County Officials (WACO) local governments will need to revise or update
billing software to incorporate the 5 cent rounding guideline. It is unknown which or how many local governments will
need to purchase new software or what the costs would be. Therefore, the expenditure impact is indeterminate.

According to Municipal Research and Services Center (MRSC) the local governments would likely also need to update
their policies to address rounding cash transactions. This would require staff time, but likely minimal.
C. SUMMARY OF REVENUE IMPACTS
Revenue impacts of the legislation on local governments, with the revenue provisions identified by section number, and when appropriate,
the detail of revenue sources. Delineated between city, county and special district impacts.

Local governments will experience a loss or gain of up to 2 cents on each transaction when cash is accepted as the form
of payment if rounding is needed to eliminate the need for pennies.

According to the Department of Revenue (DOR) the revenue impact of this bill is indeterminate but minimal. Rounding
applied to affected transactions may slightly increase or decrease total collections. Please see the DOR fiscal note for a
complete list of their data sources and assumptions.

Sources:

Association of Washington Cities
Department of Revenue fiscal note, HB 2334 (2026)
Municipal Research and Services Center
Washington Association of County Officials
Washington State Association of Counties

Page 2 of 2 Bill Number: 6230 SB
FNS060 Local Government Fiscal Note

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