BILL NUMBER: S8580A
SPONSOR: SKOUFIS
 
TITLE OF BILL:
An act to amend the general business law, in relation to requiring
merchants to round cash purchases to the nearest five cent denomination
in order to reduce the circulation of pennies within New York state
 
PURPOSE:
To require merchants to round cash purchases to the nearest five-cent
denomination.
 
SUMMARY OF PROVISIONS:
Section 1: This act shall be known and may be cited as the "New Yorkers
for Common Cents Act".
Section 2: Adds a new section 399-coo stating that if a total purchase
amount would require giving back one or more pennies in change, a busi-
ness may charge a lower price for credit card payments than for cash
payments because it cannot provide exact penny change. Doing so would
not violate any state law.
Section 3: Amends the general business law by adding a new section 399
0000, which provides definitions such as "merchants" and "legal tender."
Requires NYS merchants to determine the total price of goods and
services (inclusive of any discount, deduction, sales tax, or any other
tax imposed) and round to the following for individuals seeking to pay
with legal tender:
* If 1-2 or 6-7 cents are at the end of the resulting sum, then that
amount shall be rounded down to the nearest amount divisible by 5, or
* If 3-4 or 8-9 cents are at the end of the resulting sum, then that
amount shall be rounded up to the nearest amount divisible by 5.
This determination of the total price of goods shall not apply to trans-
actions for which the total amount is 4 cents or less, as well as to
transactions for which payment is made by any negotiable instrument,
electronic fund transfer, money order, credit card, debit card, elec-
tronic payment, or other like instrument. Additionally, any state or
municipal tax imposed shall not apply to gains or losses from rounding.
Section 4: Sets effective date.
 
JUSTIFICATION:
The United States penny, once a fixture of everyday commerce, has become
an inconvenience in cash transactions. Today, it costs more to mint than
it is worth, underscoring its obsolescence. In May 2025, the U.S. Treas-
ury placed its final order for blank pennies, marking the beginning of
its permanent phase-out. On November 12, 2025, the US Mint produced the
last penny.
As pennies gradually disappear from circulation, cash transactions
rounded to the cent will become increasingly impractical. Starting in
the Summer of 2025, businesses started posting signs in stores alerting
customers of a "penny shortage" and asking them to use exact change when
possible.
According to the Associated Press, the phaseout of the penny has sparked
criticism from some retailers because there was no federal guidance on
how they should handle transactions. As a result, each business is
implementing its own policy on how to handle the change, which could
lead to confusion and frustration amongst business owners and consumers
alike.
This bill would modernize and bring uniformity to how cash transactions
are processed in New York State. This will help ensure a smooth transi-
tion as the nation moves away from the penny. The rounding system
outlined in this bill is based on Canada's federal policy when it abol-
ished the country's penny in 2013.
 
LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect immediately, provided, however, that section
three of this act shall take effect on the one hundred eighty-first day
after it shall have become a law. Effective immediately, the addition,
amendment and/or repeal of any rule or regulation necessary for the
implementation of this act on its effective data are authorized to be
made and completed on or before such effective date.