CASH ROUNDING – Amends and adds to existing law to provide certain provisions regarding cash rounding.

68th Legislature, 2nd Regular Session (2026)

Idaho allows optional cash rounding to the nearest 5 cents for cash purchases and refunds when pennies are unavailable, while state agencies must still accept cash and not charge e

Signed by Governor on 03/31/26 Session Law Chapter 241 Effective: 07/01/2026

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Summary of Bill S.1350 (2026) — Idaho

Purpose and intent

The bill adds a cash rounding provision to Idaho law and clarifies how cash payments are handled by state agencies in light of currency changes.

It accompanies the broader shift caused by the U.S. penny (one-cent coin) reliability issues, emphasizing that cash rounding is optional guidance aligning with industry best practices. Non-cash payments (credit/debit/electronic) are not affected.

Key provisions

1) New cash rounding rule (Idaho Code § 63-3643)

For cash transactions where the seller cannot settle to the exact cent due to lack of pennies, the seller may round the total amount due or the change due to the nearest 5-cent increment.

Rounding rules for the final amount:
If the final digit is 1, 2, 6, or 7: round down to the nearest 5 cents.
If the final digit is 3, 4, 8, or 9: round up to the nearest 5 cents.

This rounding applies to cash refunds as well.

The rounding uses the total amount due (taxes/fees/charges included) computed to the nearest cent, with taxes calculated on the pre-rounding amount (the total price before rounding).

The section explicitly addresses situations when pennies are unavailable and provides a standardized method for rounding.

2) Cash payments by state agencies (Idaho Code § 67-2361, revised)

State agencies that accept payments must accept cash as a payment method, in addition to other accepted methods.

No state agency may charge an additional fee for cash payments.

Any amounts charged or withheld due to cash rounding under § 63-3643 are not considered a “fee” under this section.

3) Effective date and emergency declaration

The act includes an emergency provision, with full force and effect on and after July 1, 2026.

This makes the rounding framework effective for transactions starting on that date.

Who is affected

Private sector sellers and merchants in Idaho who handle cash transactions, especially those that operate pennies-less cash environments, may opt to apply cash rounding per §63-3643.

State agencies and departments that accept cash payments must comply with the updated cash acceptance provisions and cannot levy extra cash-pay fees.

Consumers paying with cash in Idaho may experience rounding in everyday purchases or cash refunds, where pennies are not available.

Practical and fiscal considerations

Fiscal impact: The bill’s proponents note no anticipated impact on the state general fund, and sales tax collections are not expected to change.

Operational impact: Merchants are not required to upgrade cash registers; rounding is a voluntary, guidance-based practice aligned with industry norms.

Tax calculations: Taxes are computed pre-rounding, ensuring tax base integrity prior to any cent-rounding adjustments.

Timeline

Effective date: July 1, 2026.

Emergency status: Declared to ensure immediate implementation upon enactment.

Additional notes

The bill explicitly clarifies that pennies becoming scarce (due to the penny coin’s reduced minting status) necessitates a clear rounding policy for cash transactions and refunds.

The accompanying fiscal note emphasizes there is no expected financial burden on state funds and no change to overall tax revenue from rounding practices.