Utah Businesses Guided on Cash Rounding During Penny Shortage

UT DCP News & Updates

Published November 10th, 2025

Detected March 20th, 2026

Summary

The Utah Division of Consumer Protection has issued guidance to businesses on how to handle cash rounding during a national penny shortage. The guidance recommends a specific rounding methodology for cash-only transactions after taxes are calculated and requires businesses to provide notice of their chosen method.

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What changed

The Utah Division of Consumer Protection, in consultation with the State Tax Commission and Department of Government Operations, has released guidance for businesses on cash rounding procedures due to a national penny shortage. The guidance clarifies that rounding applies only to cash purchases after taxes are calculated, and recommends a specific method for rounding to the nearest $0.05 or $0.10. Businesses are required to remit all collected taxes and must provide clear, conspicuous notice of their chosen rounding method to consumers.

Businesses that choose to adopt the recommended rounding method are encouraged to post a provided flyer at points of sale. The guidance emphasizes that all taxes must be remitted regardless of rounding. Compliance with this guidance ensures fair practices and adherence to state law during the temporary shortage. Questions can be directed to Consumer Protection.

What to do next

Review and adopt a cash rounding methodology for cash-only transactions.
Ensure all applicable taxes are calculated before rounding.
Provide clear and conspicuous notice to customers regarding the chosen rounding method.

Source document (simplified)

National Penny Shortage: The Business Guide to Cash Rounding

November 10, 2025 The Utah Division of Consumer Protection acknowledges the challenges businesses may be facing due to the current penny shortage. In consultation with the Utah State Tax Commission and Department of Government Operations, we’ve issued clear guidance to help you navigate this issue seamlessly and in compliance with state law.

Essential Guidance on Cash Rounding

Cash rounding is a temporary solution applicable only to cash purchases where change is required after the total amount due (price plus tax) has been calculated.

While businesses can choose their rounding methodology, we recommend the following method to ensure fairness and consistency:

$0.01 or $0.02 round down to $0.00.
$0.03 or $0.04 round up to $0.05.
$0.06 or $0.07 round down to $0.05.
$0.08 or $0.09 round up to $0.10. If you choose to adopt this method for cash rounding, please feel encouraged to post this useful flyer conspicuously at any point of sale:

Key Compliance Rules

Taxes Come First: Please note that cash rounding only occurs after all applicable taxes have been calculated and applied to the sale price.
Remit All Taxes: Regardless of rounding, all charged taxes must be remitted as required by law.
Provide Notice: Businesses must clearly and conspicuously disclose their rounding method for cash purchases through prominent signage, such as posting a notice near cash registers or entrances. The Division has prepared a printable flyer explaining the recommended rounding method to assist you. Thank you for helping Utah maintain its reputation for having the best state economy in the country.

For questions, please contact Consumer Protection at 801-530-6601 or [email protected].