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HB 2797

Providing for the rounding of final transaction amount for sales tax purposes if payment is made with cash.

2025-2026 Regular Session

Kansas bill permits cash-only customers to round final sales tax amounts to nearest cent, eliminating penny change issues in retail transactions.

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Bill Summary · HB 2797

Legislative bill overview

HB 2797 allows retailers to round the final transaction amount up or down to the nearest cent when a customer pays with cash, addressing the practical problem of penny elimination in transactions. The bill applies only to cash payments and does not affect digital or card-based transactions where exact amounts can be paid.

Why is this important

This addresses a real-world issue: the U.S. penny's declining utility and the mathematical reality that sales tax often creates amounts ending in fractions of a cent. The rounding policy could reduce retailer cash handling burdens and consumer inconvenience, though the actual impact depends on how frequently such situations occur in Kansas retail.

Potential points of contention

  • Revenue impact: Sales tax rounding could marginally affect state and local tax revenue if rounding favors consumers more often than retailers, though the effect on individual transactions is minimal
  • Equity concerns: Different treatment of cash versus card payments may disadvantage cash users or create administrative complexity for retailers tracking which payment method was used
  • Standardization questions: The bill's specific rounding rules (up or down to nearest cent) and whether retailers can choose the direction could create inconsistency across businesses

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

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