S595 - Various Revenue Laws Changes. (SL 2026-31)

For transactions ending in 1, 2, 6, or 7, the final digit must be rounded down to the nearest five cent interval.  For transactions ending in 3, 4, 8, or 9, the final digit must be rounded up to the nearest five cent interval. The rounding adjustment does not apply to transactions ending in 0 or 5 or for which payment is made with any non-cash method. The rounding adjustment does not alter the sales price, the amount of tax owed or collected, or any surcharges, assessments, or fees imposed on the sale. Retailers are not authorized to round the amount of sales tax due and are not relieved from the duty to calculate and remit to the Department of Revenue the exact amount of sales tax shown on an invoice or receipt.

For ABC stores specifically:

• Rounding will be required for cash transactions beginning July 1, 2027.
• Any additional revenues due from rounding adjustments are to be included in "gross receipts" but are not to affect the calculation of the required statutory distributions.

Since property taxes are permitted to be paid in cash, the provision provides that for cash transactions, a taxing unit must round down to the nearest five-cent interval and treat the tax as fully paid.

Finally, the Part provides the following protections for retailers that round in accordance with the statutory provision:

• Declares it a reasonable business practice for sales tax purposes.
• Declares it is not an unfair and deceptive trade practice.
• Declares it is not a violation of the Weights and Measures Act of 1975.
• Declares that it cannot serve as the basis for a civil action.

This Part became effective July 2, 2026.