Florida Introduces Cash Rounding Legislation (SB 1074)

Source Overview

Florida introduced SB 1074, a bill establishing rounding rules for cash transactions. Status: Introduced (not law). **Scope:** - Applies to cash transactions only when penny production has ended - Electronic transactions remain exact to the cent - Mixed-tender transactions: rounding applies only to cash portion - Rounding increment: nearest nickel (digits 8–9 round up; 0 and 5 unchanged) **Tax Treatment:** - Tax calculated on pre-rounding amount - Tax due does not increase or decrease due to rounding **What the Policy Defines:** - Rounding applies only when penny production has ceased - Rounding to nearest nickel for cash transactions - Consumer protection exemption for rounding (not a deceptive practice) **What the Policy Does NOT Define:** - Refund handling procedures - Cash-in vs cash-out behavior - Receipt disclosure requirements - Audit or recordkeeping standards

Key Takeaways

• Status: Introduced (not law)
• Conditional on penny production cessation
• Applies to cash transactions only; electronic payments remain exact
• Mixed-tender transactions: rounding applies only to cash portion
• Tax calculated on pre-rounding amount
• Consumer protection exemption included (rounding not a deceptive practice)
• Does not address refund handling, receipt disclosure, or audit standards

Open Questions

• ?How will retailers operationalize mixed-tender rounding?
• ?What triggers the "penny production has ceased" condition?
• ?Will future amendments address refund handling and audit standards?
• ?How will this interact with Florida TIP #25A01-18 guidance already issued?