Tennessee Comptroller Offers Guidance on Handling Penny Transactions After Discontinuation

Recommendations include rounding rates and fees to multiples of five or declining non-exact cash payments

Jan. 27, 2026 at 5:39pm

Got story updates? Submit your updates here. ›

The Tennessee Comptroller of the Treasury has released guidance for local governments on handling cash payments following the federal government's discontinuation of the penny. The guidance outlines several options for local governments, including rounding rates, fees, and charges to multiples of five, as well as potentially declining non-exact cash payments altogether.

Why it matters

The discontinuation of the penny has created practical challenges for local governments in Tennessee when it comes to accepting cash payments. The Comptroller's guidance aims to help local leaders navigate this change while maintaining fairness, transparency, and compliance with the law.

The details

Among the Comptroller's recommendations, local governments are advised to consider rounding rates, fees, and other charges to multiples of five. This could result in raising or lowering all government-issued rates, fees, and charges by a few cents, depending on whether local governments choose to round up or down. The Comptroller's Office also suggested that local governments consider declining non-exact cash payments altogether.

  • The federal government discontinued production of the penny in late 2025.
  • In 2024, a single penny cost $3.69 to make, resulting in an annual net loss of $85 million for the U.S. Department of the Treasury.

The players

Tennessee Comptroller of the Treasury

The state agency that released guidance for local governments on handling cash payments following the discontinuation of the penny.

Jason Mumpower

The Tennessee Comptroller who stated that the guidance is intended to help local governments navigate the practical challenge while maintaining fairness, transparency, and compliance with the law.

Jarden Zinc Products

The sole manufacturer of the zinc-based component of the penny, located in Greeneville, Tennessee. The company was renamed to Artazn and lobbied Congress in 2025 to try to prevent the discontinuation of the penny, but was unsuccessful.

Got photos? Submit your photos here. ›

What they’re saying

“This guidance is intended to help local governments navigate a practical challenge while maintaining fairness, transparency, and compliance with the law.”

— Jason Mumpower, Tennessee Comptroller

What’s next

The Comptroller's guidance is not legally-binding, and local governments in Tennessee will need to decide which policies and procedures make the most sense for their communities while staying within their legal authority.

The takeaway

The discontinuation of the penny has created logistical challenges for local governments in Tennessee, and the Comptroller's guidance provides a framework for them to consider options like rounding fees or declining non-exact cash payments. However, each community will need to adopt policies that balance practical needs with fairness and transparency.