CASH ROUNDING – Amends and adds to existing law to provide certain provisions regarding cash rounding.
Summary
S1350 amends Idaho’s commercial code provisions in Title 63, Chapter 36 to authorize and guide “cash rounding” when pennies are unavailable for making change. The bill addresses transactions paid in cash only; electronic and card-based payments are not affected. It states that taxes are to be calculated on the full pre-rounding price, and the rounding guidance is presented as optional industry best practice rather than a mandatory requirement.
The bill was introduced in response to the anticipated disappearance of pennies from circulation and the resulting practical need for merchants to make exact change in cash transactions. It clarifies that merchants do not have to change their cash registers and that the measure should not alter the amount of sales tax collected. The bill was signed by the Governor and becomes effective July 1, 2026.
Impact
S1350 changes state law by adding cash-rounding guidance to Title 63, Chapter 36, governing how merchants may round cash transactions when pennies are not available. It preserves existing tax rules by requiring sales tax to be computed on the pre-rounded amount and leaves non-cash payment methods unchanged. The fiscal note indicates no expected impact on the state general fund and no anticipated change in sales tax collections, while also noting that merchants are not required to update point-of-sale systems.
Sentiment
The overall sentiment around the bill appears generally favorable and practical, with the measure advancing through both chambers and ultimately being signed into law. The vote margins suggest support in both the Senate and House, though not unanimous, indicating some reservations but no major opposition strong enough to stop the bill. The framing of the bill as a response to a real-world currency shortage likely contributed to its broad acceptance.
Contention
The main point of contention is likely the policy choice to allow rounding in cash transactions, which can raise concerns about fairness, consumer pricing, and whether rounding could subtly affect what customers pay. Another possible concern is the broader implication of adapting state law to the end of penny circulation, especially for those who prefer exact pricing or worry about impacts on low-value cash purchases. However, the bill’s emphasis on optional guidance, tax neutrality, and no required register changes appears designed to reduce opposition from merchants and tax administrators.