When a seller does not have or does not use pennies, it must round the final total of a cash sale to the nearest 5 cents using a set method, post a sign saying so, and still pay taxes on the unrounded price.
Official title: mandatory rounding method; cash transactions
- Effective immediately as an emergency measure; signed March 13, 2026
What changes
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NowIf one-cent coins are not available or are not used by a seller at a point of sale, the seller must round the final cash total (after taxes, fees and other charges) to the nearest 5 cents: totals ending in 1, 2, 6 or 7 cents round down, and totals ending in 3, 4, 8 or 9 cents round up.
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NowThis rounding does not apply to payments by credit card, debit card, electronic funds transfer, mobile payment app or other non-cash methods. Sellers may not use any other rounding method.
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NowA seller subject to this rule must post a notice visible to customers at the point of sale stating "cash transactions are rounded to the nearest five-cent increment pursuant to state law".
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NowSellers must calculate and pay state and city taxes and fees based on the sales price before rounding. A seller is not in violation of any state or city law or rule for actions taken to comply with this rounding law.
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NowThe weights and measures services division of the Arizona Department of Agriculture enforces the rule and may issue warnings and orders and impose civil penalties, among other enforcement steps.
Who it affects
- Shoppers who pay with cash
- Businesses and other sellers that accept cash but do not have or use pennies
- Weights and measures services division of the Arizona Department of Agriculture
- State and city taxing authorities
What you need to do
Nothing for shoppers. Sellers that do not have or do not use pennies must round cash totals using the required method and post the required notice at the point of sale.
What the law doesn't answer
- The amount of any civil penalty
- What counts as one-cent coins being "not available" or "not used" by a seller
- How "seller" is defined, including whether government offices are covered
- Any size or format requirements for the posted notice
This summary describes the law as enacted. Later laws, court rulings or referendum petitions can change the picture. Check the official text for the current wording.