Texas Comptroller Guidance on Penny Scarcity

Source Overview

Texas Comptroller of Public Accounts issued administrative guidance on cash rounding. Status: Administrative Guidance Only (not legislation). **Key Distinctions:** - Texas has NOT introduced or passed cash-rounding legislation - This is Comptroller administrative guidance only - Pennies remain legal tender - Rounding may occur only when pennies are unavailable - Rounding applies to totals, not tax calculation - Tax must be calculated and remitted on the pre-rounding amount **What Guidance Addresses:** - Rounding procedures when pennies unavailable - Tax calculation and remittance requirements - Recordkeeping recommendations **What Guidance Does NOT Address:** - Mandatory rounding requirements (none exist) - Refund handling procedures - Audit standards beyond existing requirements

Key Takeaways

• Status: Administrative Guidance Only (not legislation)
• Texas has NOT introduced or passed cash-rounding legislation
• Pennies remain legal tender
• Rounding may occur only when pennies are unavailable
• Rounding applies to totals, not tax calculation
• Tax calculated and remitted on pre-rounding amount
• Recordkeeping recommendations provided

Open Questions

• ?Will Texas introduce formal legislation in the future?
• ?How will retailers document penny unavailability?
• ?Will additional guidance address refund handling?
• ?How does this interact with local jurisdiction practices?

Updates and Revisions