An Act to amend the Code of Virginia by adding in Article 1 of Chapter 2 of Title 6.2 sections numbered 6.2-200.1 and 6.2-200.2, relating to rounding procedures.
HB954 establishes a statewide rule for rounding cash transactions to the nearest five-cent increment when the total amount ends in 1, 2, 6, or 7 cents (round down) or 3, 4, 8, or 9 cents (round up). The bill applies to cash sales of goods and services, other cash transfers between parties, and cash wage payments to employees. It also requires that taxes, fees, and other charges be calculated and remitted before any rounding is applied.
The bill further authorizes local governments to adopt temporary ordinances, expiring no later than July 1, 2027, to adjust local tax bills and account balances paid in cash in response to the end of penny production by the U.S. Mint. Those local ordinances may round to the nearest five cents and may write off amounts under five cents. In addition, the Department of Taxation must study and recommend a uniform statewide procedure for localities to use in adjusting cash-paid taxes and charges, and report its findings to legislative finance committees by November 1, 2026.
HB954 amends Title 6.2 of the Code of Virginia by creating new statutory provisions governing cash rounding and by providing a safe harbor for sellers who comply with the rounding rules. It affects merchants, service providers, employers paying cash wages, and any public or private entity handling cash transactions, while preserving the requirement that taxes and fees be computed on the pre-rounded amount. It also gives localities limited temporary authority to manage penny-related billing issues and directs the Department of Taxation to develop recommendations for a uniform local approach.
The bill appears generally practical and administrative in nature, aimed at addressing the elimination of penny production and the operational need to handle cash amounts without one-cent coins. The absence of recorded committee transcripts or votes suggests no documented controversy in the available materials, and the enacted chapter status indicates the measure ultimately received approval. Overall, the bill’s framing suggests broad support for a standardized rounding mechanism rather than a partisan or ideologically divisive issue.
The main policy issue is how to handle rounding in a way that is uniform, legally clear, and fair to consumers, businesses, employees, and local governments. Potential points of concern include whether rounding could advantage one side of a transaction, how local tax bills should be adjusted during the transition away from pennies, and whether a statewide standard should replace local discretion. The bill addresses these concerns by requiring taxes and fees to be calculated before rounding, allowing local temporary ordinances only through July 1, 2027, and directing the Department of Taxation to study a uniform procedure.