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SB 1014

Trade: business practices; requirement for rounding down certain cash transactions; provide for. Amends secs. 2 & 7 of 2011 PA 15 (MCL 445.312 & 445.317).

2025-2026 Regular Session Introduced by Rosemary Bayer and 3 co-sponsors

When paying cash, the final price must be rounded down to the nearest 5 cents, while taxes and display rules remain largely unchanged.

REFERRED TO COMMITTEE ON FINANCE, INSURANCE, AND CONSUMER PROTECTION
#trade:businesspractices #trade:businessregulation
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Bill Summary · SB 1014

Overview

SB 1014 would amend the Michigan Shopping Reform and Modernization Act (2011 PA 15) to require rounding down the final price of consumer items purchased in cash transactions to the nearest 5 cents, and to clarify certain definitions and price display requirements. The bill focuses on cash transactions at retail and preserves existing tax calculations and other price disclosures.

Purpose and intent

  • Establish a uniform rounding rule for cash transactions to the nearest 5 cents when a consumer item is purchased with cash.
  • Maintain current treatment of sales and use taxes in calculating the final price.
  • Clarify terms related to advertising, price display, and related retail practices to ensure consistent application of the act.

Key provisions

  • Sec. 2 definitions: The bill enumerates or clarifies terms used in the act, including “advertise,” “advertising,” “automatic checkout system,” “consumer item,” “displayed,” “final price,” “person,” “sale at retail,” and “total price.” These definitions set the framework for how prices and advertising are interpreted under the act.
  • Sec. 7(1): When a consumer pays cash for a consumer item, the final price must be rounded down to the nearest multiple of 5 cents. This rounding applies to the final price that the customer pays, but does not alter the calculation of applicable sales or use taxes.
  • Sec. 7(2)–(3): General requirement to display the total price of a consumer item offered for sale at retail at the place of sale, with several explicit exceptions (see below).
  • Exceptions to display rule (Sec. 7(3)/(2)):
    • Items sold by weight or volume not in a package or container.
    • Items sold in coin-operated vending machines.
    • Prepared foods intended for immediate consumption.
    • Items ordered by mail/catalog or not visible for inspection at the time of sale, described on the order/invoice, and enclosed with the item.
    • Unpackaged food items.
    • Small-weight/price thresholds (≤ 3 ounces, ≤ 3 cubic inches, and total price ≤ $0.30).
    • Live plants and live animals.
    • Motor vehicles and motor vehicle parts.
    • Packs of 20 or fewer cigarettes.
    • Individually sold greeting cards with readable price on the back.
    • Gift-order merchandise sent by mail or delivery service at the consumer’s request.

Who is affected

  • Retailers engaged in cash transactions for consumer items, who would need to implement rounding to the nearest 5 cents in the final price.
  • Retailers and vendors that must display total prices at the point of sale, subject to the outlined exceptions.
  • Consumers who pay cash may see a consistent rounding practice in their final charges.

Procedural and timeline notes

  • Introduced in the Michigan Senate (Session 2025-2026) and referred to the Committee on Finance, Insurance, and Consumer Protection.
  • No specific effective date provided in the text provided; typically, the bill would specify an effective date if enacted.

Potential impact

  • Standardizes cash transaction pricing, potentially simplifying cash handling and pricing accuracy for both retailers and consumers.
  • Slight price rounding could result in minor reductions on some cash transactions (final price rounded down to the nearest 5 cents).
  • Retailers must ensure compliance with the display requirements and applicable exceptions to avoid penalties.

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

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