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Penny-rounding bill passes Florida Senate, heads for House vote

Bill would let businesses round up or down on cash payments

Freshly-made pennies gleam under the lights as they sit in a bin at the U.S. Mint in Denver on Wednesday, Aug. 15, 2007. Because of a surge in the price of zinc and copper, it now costs the U.S. Mint almost 2 cents to produce a penny. That has some in Congress seeking a change in the way the coins are made, if not removing them circulation altogether. The the nation's sole supplier of zinc "penny blanks," Jarden Zinc Products, is lobbying the federal government to protect its interests. (AP Photo/David Zalubowski) (David Zalubowski, AP2007)

TALLAHASSEE, Fla. – Businesses could round cash sales up or down to help deal with the discontinuation of the penny under a bill that passed the Florida Senate on Thursday.

State Sen. Don Gaetz, R-Niceville, says SB 1074 prepares the state’s economy for a time without pennies.

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Under the legislation, purchases involving cash sales ending in 1, 2, 6 or 7 would be rounded down to the nearest nickel, and sales ending in 3, 4, 8 or 9 would be rounded up to the nearest nickel.

It does not affect people making electronic or card payments.

“The bill establishes clear uniform rules for rounding cash transactions up to the nearest nickel, while ensuring that sales taxes, fees and surcharges are not affected,” Gaetz said.

The measure comes after the U.S. Mint suspended production of the penny in November due to costs. The penny costed four cents to make.

Since then, many businesses have put up signs warning that the lack of pennies could lead to rounding sales.

A similar House bill, HB 951, is also ready for consideration by the full chamber.

Information from the News Service of Florida was used in this report.


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