Under a new state law that takes effect on Aug. 25, businesses in Missouri will be allowed to round cash purchase totals to the nearest nickel. The law is meant to help simplify cash transactions at the register by allowing businesses and consumers to stop relying on pennies, which are no longer minted as of November 2025. Missouri Republican State Senators Brenda Shields and George Hruza sponsored the bill, which was signed into law on July 13 by Missouri Governor Mike Kehoe.

HB 2819 allows sellers to round totals ending in 1, 2, 6, and 7 cents down to the nearest nickel. Totals that end in 3, 4, 8, and 9 cents can be rounded up. Under the law, a purchase of $1.12 could be rounded down to $1.10. Likewise, a purchase of $1.19 could be rounded up to $1.20.

While businesses are not required to round up or down to the nearest nickel, they have the option to do so. The rounding method only applies to cash transactions, with credit, debit and other non-cash forms of payment exempt. Rounding can only be applied to final transaction totals that include all items, discounts and taxes.

Some have raised concerns over the rounding system, arguing that it could create rounding errors for businesses. Under the law, a customer’s cash payment can be rounded up or down, but the business’s sales-tax obligation is not, creating a potential accounting gap.

Sarah Berry shared concerns at a public hearing regarding the law with the Missouri House of Representatives Ways and Means Committee.

“This creates a structural mismatch between what the taxpayer actually pays, and what the state requires to be remitted,” Berry said. “That mismatch is not theoretical. Over millions of transactions, it results in aggregate over-collection or under-collection borne by either consumers or vendors, neither of whom voted for a discretionary rounding scheme. Missouri’s Constitution does not authorize taxation by approximation.”

A fiscal analysis published on Jan. 26 by the Oversight Division of the Missouri Committee on Legislative Research argued that the rounding system will have a negligible effect.

The report said “(The Department of Revenue) assumes this will have a limited impact on revenue as most transactions are non-cash transactions. For the few cash transactions, there will be about an equal number of transactions rounded up as rounded down. DOR notes that the decision to allow cash transactions is up to each retailer.

Local business owners in Missouri said, as long as they have pennies, they’ll continue to give exact change. Some said the option to scrap pennies and round cash purchases will likely not affect their day-to-day business. Others said that adopting the rounding system could cause friction with customers.

Jeff Bouse, owner of Hayes Shoe Store in Cuba, said that he doubts the new law will affect his business much. Eighty percent of his sales are done via cashless payment like checks credit and debit cards. Bouse added that, so far, he hasn’t had trouble getting rolls of pennies from the bank, so he will continue giving customers exact change. If pennies ever become hard to come by, Bouse said that is when he will start rounding to the nearest nickel.

“I guess the day that I go to the bank and they don’t have any rolls, then I’ll start rounding up or down,” Bouse said.

Justin Booher, owner of Cuba Coffee Co. said that, for now, he’s got plenty of pennies, adding that he only uses about $3 worth of pennies a week.

“Do we need to get rid of the pennies? Of course,” said Booher, adding that he would consider rounding to the nearest nickel once his point-of-sale systems are able to do it automatically.

“My main thing is I don’t care what they do. I’m going to do what I do. And if I’m forced to round up or down, you better have it built into the point of sale,” Booher said, adding that he doesn’t want to subject his staff or customers to the inconvenient “weird math” of rounding totals up and down.

Booher said he’s built a business that can withstand economic changes, like the ones introduced in House Bill 2819.

“If you build a strong enough business, it’s just another bump in the road. I’m training my children how to do the same, and not be caught behind the eight ball. If something goes haywire, figure out how to adjust it.”

Billie McPherson, owner of Elaine’s Flowers and Gifts in Steelville, said she doesn’t yet know what she will do about the new law, adding that she will come to a decision with her staff by Aug. 28, when the law takes effect.

“With me having people helping me, I want us all on track, you know, doing the same thing,” McPherson said.

McPherson said she’s not sure how customers will feel about having their purchase totals rounded up and down.

“I just don’t know how people are going to react. I can see some people, like four cents, three cents, no big deal, but then other people want their exact change,” McPherson said. “But when the penny runs dry, then I’ll probably just round up.”