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Bill

S 8580

Requires merchants to round cash purchases to the nearest five cent denomination in order to reduce the circulation of pennies within New York state

2025 Regular Session Introduced by James Skoufis

New York would require cash merchants to round purchases to nearest nickel, eliminating pennies from transactions to reduce production waste and circulation costs.

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Bill Summary · S 8580

Legislative bill overview

S 8580 would require merchants in New York State to round cash purchases to the nearest five-cent denomination (eliminating the penny from transactions). The bill aims to reduce penny circulation, which costs significantly more to produce and distribute than its face value while cluttering the money supply.

Why is this important

Pennies cost approximately 1.7-2.4 cents to manufacture and distribute, making them economically inefficient. Removing them from circulation could reduce waste and simplify point-of-sale transactions, though the change affects pricing psychology and consumer behavior around small purchases.

Potential points of contention

  • Rounding direction and consumer impact: Customers may see purchases rounded up more often than down, effectively creating a small tax on cash transactions that could disproportionately affect low-income consumers making frequent small purchases
  • Businesses and pricing strategy: Merchants must adjust systems and staff training; businesses could strategically price items to benefit from upward rounding, potentially increasing revenue at consumer expense
  • Payment method equity: This only affects cash transactions, creating a system where credit/debit card users avoid rounding while cash users bear the cost, raising fairness questions
  • Feasibility and federal coordination: Pennies remain legal tender; without federal action, other states, and online/remote sellers would operate differently, creating marketplace inconsistency

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

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