Cash payments: calculation.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Enrolled
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill, the California Common Cents Act, requires merchants to round transaction prices to the nearest five-cent amount when accepting payments made with legal tender. It defines ‘legal tender’ as U.S. coins and currency and establishes rules for rounding up or down depending on the last digit of the total price. The bill also outlines how rounding adjustments shouldn’t affect tax calculations and creates a new crime for overcharging, while exempting certain payment methods like credit cards. It takes effect on July 1, 2027.
Key provisions
- Merchants must round transaction prices to the nearest five-cent amount when paid with legal tender.
- ‘Legal tender’ is defined as all U.S. coins and paper currency.
- Rounding adjustments are not to be used for tax calculations.
- A new crime is created for overcharging customers.
- The Treasurer can create regulations to implement the act.
- The California Department of Tax and Fee Administration can create regulations regarding rounding adjustments for taxes.
- Transactions under $0.02 do not require rounding.
- Payments made entirely by non-cash methods are exempt from rounding requirements.
Who is affected
- Retail merchants
- Consumers
- The California Department of Tax and Fee Administration
- The Treasurer of the State of California
- Local governments
Notable changes
Bill text
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