Florida Introduces Plan to Phase Out the Penny: What You Need to Know

TALLAHASSEE, Fla. – A legislative proposal recently submitted in Florida outlines procedures for businesses facing a shortage of pennies.

Introduced by state Representatives Fiona McFarland (R-Sarasota) and Tobin Overdorf (R-Palm City), the bill, known as HB 951, establishes a set of guidelines for businesses to follow if they run out of 1-cent coins in the state.

The stipulations of HB 951 come into play specifically if businesses are unable to acquire pennies due to a halt in their production.

This concern arose after former President Donald Trump announced last year that he had directed the cessation of penny production due to their high manufacturing costs.

[BELOW: US Mint produces its last batch of pennies, ending a 230-year tradition]

If this leaves businesses without pennies, then HB 951 requires businesses to round in-person cash transactions as follows:

• If the final digit ends in 1 or 2 cents? Round to 0 cents.

• If the final digit ends in 3, 4, 6, or 7 cents? Round to 5 cents.

• If the final digit ends in 8 or 9 cents? Round to 10 cents.

However, rounding to the nearest nickel doesn’t change how much tax is due during the transaction, as tax must be calculated before the rounding.

Right now, HB 951 must pass through three committees if it wants a chance to become law. Its first hearing is slated on Feb. 2 before the Ways & Means Committee.

But if the bill manages to clear all of its hurdles and get passed into law, it will take effect immediately upon receiving the governor’s signature.