Mississippi Introduces Cash Rounding Legislation (SB 2680)

Source Overview

Mississippi introduced SB 2680, a bill establishing rounding rules for cash transactions. Status: Introduced (not law). **Scope:** - Applies to face-to-face, in-person cash sales only - Excludes transactions under 4 cents - Excludes electronic fund transfers, credit cards, debit cards, money orders **Tax Treatment:** - Tax imposed before rounding - State and municipal taxes not affected by rounding gains or losses **What the Policy Defines:** - Symmetric rounding to nearest five cents - Merchant definition (person, corporation, partnership engaged in face-to-face sales) - Legal tender definition **What the Policy Does NOT Define:** - Refund handling - Cash-in vs cash-out behavior - Receipt disclosure requirements - Audit or recordkeeping standards

Key Takeaways

• Status: Introduced (not law)
• Applies to face-to-face, in-person cash sales only
• Excludes transactions under 4 cents
• Excludes electronic fund transfers, credit cards, debit cards, money orders
• Tax imposed before rounding; taxes not affected by rounding gains or losses
• Delegates regulatory implementation to Department of Finance and Administration
• Effective date: July 1, 2026 (if passed)

Open Questions

• ?What regulations will the Department of Finance and Administration issue?
• ?How will retailers handle transactions exactly at 4 cents or less?
• ?Will future guidance address refund handling and audit standards?
• ?How will this interact with neighboring state approaches?