No pennies? No problem: Arizona governor signs bill to regulate rounding in cash transactions

PHOENIX – Arizona Gov. Katie Hobbs signed a bill Friday to regulate how businesses must handle cash transactions in the absence of pennies, which are no longer being minted.

HB 2938 mandates the use of what’s known as the Swedish rounding method for cash transactions when pennies are not available.

The Legislature passed the bill nearly unanimously, with a single no vote in each chamber.

The legislation says that in the absence of enough 1-cent coins, transaction amounts that end in .01, .02, .06 or .07 must be rounded down to the nearest multiple of 5 cents. Conversely, sellers must round amounts ending in .03, .04, .08 or .09 up to the nearest multiple of 5 cents.

The rounding is based on the total after taxes, fees and other charges are calculated, and it doesn’t apply to credit cards and other noncash payment methods.

Furthermore, the bill dictates that businesses must remit state and municipal taxes and fees based on the pre-rounding amounts.

The Greater Phoenix Chamber applauded the legislation.

“With pennies no longer being produced and federal policy not yet in place, Arizona needed a commonsense solution that keeps everyday transactions running smoothly,” the Greater Phoenix Chamber said in a statement. “HB 2938 delivers that clarity — protecting both consumers and businesses while ensuring cash transactions can be completed efficiently.”

Why is legislation needed about lack of pennies?

Rounding laws are needed because the U.S. Mint stopped making new pennies in November 2025.

That led to a shortage of pennies in cash registers and uncertainty about how to address it.

However, about 114 billion pennies are still in circulation and must be accepted as payment.

Congress has been working on a national rounding law that would supersede state and local regulations, but it has yet to pass through either chamber.

President Donald Trump initiated the move to save money, with each 1-cent coin costing 3.7 cents to produce. The U.S. Mint projected an immediate annual savings of $56 million.

The Associated Press contributed to this report.

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