SSB 3143 (LSB 6577XC (2) 91)

SENATE FILE _____ 

BY  (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON BOUSSELOT)

A BILL FOR

An Act relating to rounding the amount of cents for cash transactions and payments.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  554J.1  Cash transactions and payments —— rounding.
   1.  The following shall apply to a person that sells a good or service in a cash transaction in the state, enters into a transaction that results in a payment or transfer of cash between the parties to the transaction, or pays cash wages to an employee as compensation in the state:
   a.  Except as provided in paragraph “c”, if the total transaction amount, including any taxes, ends with one, two, six, or seven as the final digit of the number of cents for the transaction, the person may round down the number of cents to the nearest number of cents divisible by five.
   b.  If the total transaction amount, including any taxes, ends with three, four, eight, or nine as the final digit of the number of cents for the transaction, the person may round up the number of cents to the nearest number of cents divisible by five.
   c.  If the total transaction amount, including any taxes, totals one or two cents, the person shall round up the transaction amount to five cents.
   2.  This section shall not apply to a transaction or payment made with a demand or negotiable instrument, electronic fund transfer, check, gift card, money order, credit card, or other similar instrument or method.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to rounding the amount of cents for cash transactions and payments.
   On November 12, 2025, the United States mint suspended production of the one cent coin (penny) at the direction of the United States secretary of the treasury.
   The bill applies to a person that sells a good or service in a cash transaction in the state, enters into a transaction that results in a payment or transfer of cash between the parties to the transaction in the state, or pays cash wages to an employee as compensation in the state.
   If the total amount of the transaction, plus taxes, requires a number of cents ending with one, two, six, or seven, the person may round down the number of cents to the nearest number of cents divisible by five. If the total amount of the transaction, plus taxes, requires a number of cents ending with three, four, eight, or nine, the person may round up the number of cents to the nearest number of cents divisible by five. If the amount of the transaction or payment, plus taxes, totals one or two cents, the person shall round the transaction amount to five cents.
   The bill does not apply to a transaction or payment made with a demand or negotiable instrument, electronic fund transfer, check, gift card, money order, credit card, or other similar instrument or method.