State & Local
    Compliance
    Policy

    TIP #25A01-18: Cash Transactions – End of Penny Production

    Florida Department of Revenue

    Published: December 19, 2025
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    Source Overview

    Florida issues formal guidance on sales tax calculation and rounding procedures following the cessation of penny production, clarifying retailer obligations.

    Key Takeaways

    • Sales tax calculated before rounding on total transaction
    • Rounding applies only to final cash amount due
    • Electronic transactions remain exact to the cent
    • Retailers must display pre-rounded and post-rounded amounts

    Our Two Cents

    Florida's detailed guidance provides a model for other states, though variations in approach may still create compliance complexity for multi-state retailers.

    Open Questions

    • ?Will other states adopt similar disclosure requirements?
    • ?How will POS systems handle state-specific variations?

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