Florida lawmakers have passed a bill that would allow businesses to round cash purchases up or down to the nearest five cents, effectively sidelining the penny at the register.

The proposal comes after the U.S. Mint paused penny production in 2025, as manufacturing costs climbed to nearly four cents per coin — more than the coin’s face value. That decision triggered a nationwide shortage of pennies that has left many retailers scrambling.

Under the bill, a transaction totaling $2.03 would round down to $2.00, while one totaling $2.07 would round up to $2.10. The rounding rule would apply only to cash payments; credit and debit card transactions would be unaffected.

Abigail Hall, an associate professor of economics at the University of Tampa, noted that the penny shortage has been a real burden for businesses, but raised concerns about who bears the impact of the new system. Because card payments are exempt, lower-income residents who rely on cash would be the primary group affected by rounding.

Jeff Lenard of the National Association of Convenience Stores said the transition will require some adjustment between retailers and customers, but expressed confidence the system would be fair over time, noting that gains and losses from rounding tend to balance out. He pointed to Canada and other countries where similar rounding systems have been in place for over a decade without major issues.

Florida has more than 9,000 convenience stores — third most in the nation — and cash makes up roughly 40 to 50 percent of transactions at many of them, making the state particularly affected by the penny shortage.

The bill now heads to Gov. Ron DeSantis. If signed, it would take effect immediately.

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