BILL NUMBER: S8580
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 399-00o to the general business law,
defining "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 3: 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 on the one hundred eightieth day after it
shall have become a law.