Kentucky cash rounding law

Kentucky is split-tier. Rounding cash transactions to the nearest five cents is required for debts owed to state agencies, cities, counties, local government entities, and school districts when pennies are unavailable, applied on settlement of the final bill after all items, duties, fees, and taxes are calculated to the exact cent. For retail sales and for lottery, horse racing, and charitable gaming transactions the same rounding is permitted but not required. The act took effect on enactment, April 14, 2026.

Tax base is pre-rounded. Rounding occurs only on settlement after taxes are calculated to the exact cent, and KRS 139.210(6) preserves the retailer's duty to collect and remit the correct tax regardless of payment method.

The act governs cash transactions; noncash transactions continue to be settled to the cent without rounding. Split-tender mechanics are not specified in the enacted text.

Express statutory safe harbor. A person selling goods or services is not in violation of any state or local law, administrative regulation, or standard based on actions taken in compliance with the rounding sections.