Washington Introduces Mandatory Cash Rounding (HB 2334)
Washington State Legislature
Source Overview
Washington introduced HB 2334, establishing mandatory rounding for cash transactions. Status: Passed House February 2026. **Rounding Scope:** - Mandatory rounding to nearest five cents for cash transactions - Electronic transactions remain exact to the cent **Tax Treatment:** - Tax calculated on the original sale price - Tax is not altered by rounding **What the Policy Defines:** - Mandatory rounding for all cash transactions - Tax integrity preserved through original price calculation **What the Policy Does NOT Define:** - Refund handling - Receipt disclosure requirements - Audit or recordkeeping standards
Key Takeaways
- Status: Passed House February 2026
- Mandatory rounding for cash transactions
- Rounding to nearest five cents
- Tax calculated on original sale price, unaffected by rounding
- Electronic transactions remain exact to the cent
Our Two Cents
Washington's mandatory approach with explicit tax protection provides operational clarity. The bill's passage through the House signals legislative momentum in the Pacific Northwest.
Open Questions
- ?Will the Senate advance the bill on a similar timeline?
- ?How will Washington retailers implement mandatory rounding?
- ?Will neighboring states (Oregon) align their approach?
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