States and Federal Tax Policy

Months after the U.S. Mint halted penny production—citing a 2024 cost of about 3.7 cents per coin—the Treasury says roughly 114 billion existing pennies will remain in circulation and must still be accepted even as consumers and retailers report a practical shortage at registers. States are rushing to set cash‑rounding rules (some allowing, others requiring rounding), with Arizona, Florida, Oregon, Tennessee, Virginia and Washington passing bills and Indiana pursuing a two‑step approach to make rounding optional; Tennessee’s measure creates a consumer‑protection safe harbor for symmetrical rounding, some state agencies advise rounding after tax, analysts warn real‑world rounding could skew upward because many prices end in 8 or 9, and a House bill would impose nationwide symmetrical rounding.