Florida Moves to Phase Out Penny in Cash Transactions

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The Florida state legislature has approved a measure, SB 1074, that would allow businesses to round cash payments to the nearest five cents, effectively phasing out the practical use of pennies in day-to-day transactions. While the penny would remain legal tender, its everyday use in stores would begin to fade over time due to a shortage of pennies and the increasing inefficiency of producing them.

Why it matters

The decision to phase out the penny is driven by a shortage of the coins and the rising costs of producing them, which have created headaches for businesses that still rely on cash. The measure is intended to provide clarity and avoid legal disputes between consumers and businesses, especially under Florida's unfair trade practices law.

The details

The change would apply only to cash payments, with credit cards, debit cards, and digital payments remaining unaffected. Each retailer would be able to decide whether rounding benefits the customer or the business, though the goal is for the impact to be minimal and to balance out over time. Taxes would still be calculated based on the item's actual price, before rounding.

• The Florida state legislature has approved SB 1074, the 'One-cent Piece' bill.
• The bill is now awaiting Gov. Ron DeSantis' signature, which could make it law in the coming days.

What they’re saying

What’s next

If signed into law by Gov. Ron DeSantis, the measure would allow businesses in Florida to begin rounding cash payments to the nearest nickel, effectively phasing out the practical use of pennies in day-to-day transactions.