New York State Senator James Skoufis has introduced a bill that would require vendors to round cash purchases to the nearest five-cent denomination. The “New Yorkers for Common Cents Act” would standardize how cash transactions are handled as the US officially ends production of the penny. The proposed law aims to minimize the use of pennies returned as change, and would not apply to transactions paid for online or by card, electronic payment or transfer, or money order. The law would take effect 180 days after being signed.<\/p>\n
ALBANY, N.Y. (NEXSTAR) \u2014 State Senator James Skoufis, an Orange County Democrat, introduced a bill on Friday that would require vendors to round cash purchases to the nearest five-cent denomination. \u201cNew Yorkers for Common Cents Act\u201d would standardize how cash transactions are handled as the U.S. officially ends production of the penny.<\/p>\n
\t The proposed S8580<\/a> is currently in the Senate Standing Committee on Rules and lacks an Assembly counterpart. It would make merchants in New York state follow a specific process to determine the actual price at the register, minimizing the use of pennies returned as change.<\/p>\n First, they\u2019d have to total the sticker price of goods and services, make any discounts, and then add sales or other taxes. The resulting sum would then be rounded following simple math rules so the final purchase price ends in 0 or 5.<\/p>\n If the total ends in one or two cents\u2014$0.01 or $0.02\u2014the sum gets rounded down to end in 0.<\/p>\n If it ends in three or four cents\u2014$0.03 or $0.04\u2014the sum gets rounded up to end in 5.<\/p>\n If it\u2019s six or seven cents\u2014$0.06 or $0.07\u2014it gets rounded down to 5.<\/p>\n For eight or nine cents\u2014$0.08 or $0.09\u2014it gets rounded up to 0.<\/p>\n \t Though the bill aims to smooth the transition for New Yorkers, customers might end up paying an extra cent or two on if the total is rounded up. It specifies that gains or losses from the rounding process couldn\u2019t be taxed by the state or any municipality.<\/p>\n Transactions where the total amount is under five cents wouldn\u2019t be rounded, either. Nor would transactions paid for online or by card, electronic payment or transfer, or money order.<\/p>\n \t Under the bill, the superintendent of the New York State Department of Financial Services can create regulations to put the law into effect, including more exemptions or exclusions that aren\u2019t specifically listed in the bill.<\/p>\n The law defines a \u201cmerchant\u201d as any person, corporation, or partnership selling goods or services through face-to-face, in-person sales. It would take effect 180 days (about six months) after being signed.<\/p>\n \t The \u201cNew Yorkers for Common Cents Act\u201d followed the U.S. Mint producing what was supposedly the last U.S. penny on November 12, ending production of the one-cent coin. As they disappear from circulation, cash transactions rounded to the exact cent become less practical.<\/p>\n The U.S. Department of the Treasury placed its last order for blanks in May, and some businesses around New York started warning about a penny shortage over the summer. But the Associated Press reported that the lack of any federal guidance<\/a> on handling transactions meant that each business was creating its own policy on handling change, which could frustrate business owners and customers.<\/p>\n \t Skoufis said everyone deserves clear guidance and transparency. \u201cWithout consistent guidelines from merchant to merchant, confusion is inevitable, and I want to ensure New York has directives in place to protect individuals on both sides of cash transactions,\u201d he said.<\/p>\n It costs the federal government $0.037 per coin to make a penny, and they\u2019re supposed to be saving $56 million per year. And transitioning to this rounding system isn\u2019t currently projected to cost the state anything.<\/p>\n
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