Minnesota cash rounding law
HF 4591 / Laws 2026 Ch. 119. Enacted May 27, 2026; applies May 28, 2026. Obligation: Permits; posting required. Scope: State agency transactions only.
Verified against enacted text: September 2, 2026. Primary source.
Federal baseline
H.R. 10167 has passed congress. It is not yet law, and it does not by itself change Minnesota's enacted requirements below. Section 4 of the bill is a safe harbor for adherence to the federal rounding conduct it describes, not a blanket preemption of state law. See the Federal Cash-Rounding Standard for the pending federal framework and its current status.
Review status
Status: Monitoring. Verified against enacted text: September 2, 2026.
No specific guidance identified beyond what is cited on this page as of September 29, 2026. Monitoring for updates.
What a merchant must do
Minnesota's law covers state agencies only, not private merchants. Under new Minn. Stat. 16A.402, an agency, or a party transacting on its behalf, may round cash payments to the nearest five cents. An agency that engages in cash transactions must establish a written rounding policy and post it at each location where cash transactions occur. Effective May 28, 2026, the day following final enactment (Laws 2026, Chapter 119, HF 4591).
Tax base treatment
Not addressed by the enacted text. The cash-rounding section contains no separate tax-base provision.
Mixed tender treatment
Addressed by exclusion. The section does not apply to any transaction paid by electronic fund transfer, check, gift card, money order, credit card, or other similar instrument or method, so noncash portions are excluded from rounding.
Liability protection
No express safe harbor or immunity clause. Protection is regulatory only and contingent on the agency adopting and posting the required rounding policy.
Related references
- Cash rounding compliance: the category definition and its four failure points
- Legislation tracker: live status across all enacted and pending states
- Cash rounding exposure tool: compare Minnesota against the other states you operate in
- Cash rounding laws by state: every enacted statute with citation, applicability date and obligation
- Arizona cash rounding law: obligates, a different obligation structure from Minnesota
- Kentucky cash rounding law: obligates govt; permits retail, a different obligation structure from Minnesota
- New Mexico cash rounding law: delegation, a different obligation structure from Minnesota