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Bill

HB 281

An Act relating to rounding cash transactions to the nearest five cents.

34th Legislature (2025-2026) Introduced by Ashley Carrick and 2 co-sponsors

Alaska bill authorizes rounding cash transaction totals to nearest five cents to address penny scarcity and reduce retail handling costs.

(H) Scheduled but Not Heard
#business #consumeraffairs #sales #tradepractices
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Bill Summary · HB 281

Legislative bill overview

HB 281 would authorize businesses in Alaska to round cash transactions to the nearest five cents instead of requiring exact penny amounts. This addresses the practical challenge that pennies are increasingly scarce in circulation and costly for retailers to handle, while also eliminating the need for customers to receive pennies as change.

Why is this important

As the U.S. penny's purchasing power continues to decline and production costs remain high, many retailers struggle with penny management. This bill would align Alaska with practices in other countries (like Canada, which eliminated the penny in 2013) and could reduce transaction friction at the point of sale, though it creates minor rounding variations that could accumulate across multiple purchases.

Potential points of contention

  • Consumer impact: Customers purchasing single items may see prices rounded up, creating uncertainty about final costs and potential slight increases in total spending over time
  • Business accounting complexity: Retailers must implement systems to apply rounding consistently and accurately, with questions about how rounding applies to different payment scenarios
  • Regressive effect: Lower-income consumers who pay in cash more frequently may bear a disproportionate burden from systematic rounding up

Compiled from official sources — confirm details with the bill’s official record.

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