Florida retailers applaud passage of ‘cents and sensibility’ penny-rounding measure

The Florida Retail Federation (FRF) is celebrating passage earlier this week of a measure authorizing retailers to round certain transactions to the nearest nickel, a response to the retirement of the penny from U.S. currency production.

The group said the authorization, which becomes effective upon becoming law, provides “common cents” to those at the forefront of Florida commerce.

“Florida retailers have always been leaders in dealing with change, whether it’s in the industry or at the checkout counter,” said Scott Shalley, President and CEO of the FRF, in a written statement.

“This bill helps businesses and consumers avoid getting nickel-and-dimed by a coin that is increasingly hard to come by. Thank you to Senator Gaetz, Representative McFarland and Representative (Toby) Overdorf for your efforts to champion the evolving future of retail in Florida.”

The proposal establishes that purchases ending in 1 or 2 cents would round down to zero, while those ending in 3 or 4 cents would round up to 5 cents. Transactions ending in 6 or 7 cents would round down to 5 cents, and those ending in 8 or 9 cents would round up to the next 10 cents. The change would apply only to cash purchases and would not affect electronic payments or how sales taxes are calculated.

The U.S. Treasury and Mint department stopped producing pennies in late 2025, noting it costs more to make a penny than the penny is worth. Over the past 10 years, the cost to make a penny rose from 1.3 cents to 3.69 cents by the time it was removed from production. Not making the 1-cent coin any longer is estimated to save the U.S. government about $56 million in reduced material costs.

While pennies are still considered legal tender, a shortage is expected as no new pennies are created to replace those lost or damaged or — as most anyone cleaning out a car will attest — sucked into a vacuum and/or tossed in the trash.

“We need to help our retailers deal with the shortage of pennies,” Rep. Fiona McFarland, the House bill (HB 951) sponsor, said in a recent bill presentation. “A law of this measure is necessary as pennies leave our currency and our exchange.”

Sen. Don Gaetz sponsored the Senate version of the bill (SB 1074), describing it as a way to “provide consistent guidance on how to round amounts when pennies are not available.”

The Senate bill was the one ultimately approved, though both measures were identical.

The FRF is a statewide trade association representing retailers, which contribute $239 billion to the state’s economy each year and support 3.6 million jobs accounting for one-third of all jobs in the state.