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By Amanda Greenwood
Associate News Editor
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Millions of Ohio residents could soon see small changes in how they pay taxes, fines, and fees under a state bill that would round certain cash payments up or down to the nearest five cents.
The proposal, known as Ohio House Bill 737, would require cash payments—including taxes, tolls, fees, and fines—made to state agencies and local governments to be rounded to the nearest nickel.
How Ohio’s Cash Rounding Bill Would Work
Under the bill, payments ending in one or two cents would be rounded down, while those ending in three or four cents would be rounded up.
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Likewise, amounts ending in six or seven cents would be rounded down, and those ending in eight or nine cents would be rounded up—effectively eliminating the need to use pennies in these transactions.
Crucially, the legislation, if passed, “would only apply to cash payments,” while electronic payments—including credit cards and digital transfers—would not be affected, and would still be charged to the exact cent.
Supporters of the bill say the change would cut costs and simplify transactions, particularly as the use of pennies declines. State Representative Bill Roemer called it a “common-sense” update, reflecting shifts in how Americans pay for goods and services, adding that “by rounding cash transactions to the nearest nickel, we can reduce unnecessary costs while allowing constituents and businesses to continue to transact efficiently.”
The measure is still under consideration in the Ohio legislature and would need to pass both chambers and be signed into law before taking effect.
A Nationwide Shift Away From Pennies
Ohio’s proposal is part of a broader nationwide trend as states grapple with a practical question: What happens when there are no pennies to make exact change?
In late 2025, the U.S. Mint halted production of new one‑cent coins, citing the fact that each penny costs significantly more to produce than its face value. According to the agency, the cost to produce one penny has risen from 1.42 cents to 3.69 cents over the last ten years.
Although billions of pennies remain in circulation, their availability at cash registers is declining, prompting businesses and lawmakers to explore alternatives.
Other States Moving in the Same Direction
Ohio is far from alone in exploring this change. Across the U.S., states are rapidly introducing or passing laws to standardise how cash payments are handled in a post‑penny economy.
Multiple states are advancing legislation. Some states propose allowing businesses to round cash purchases, while others are considering making rounding mandatory:
- Bills addressing cash transaction rounding have passed both chambers in Arizona, Florida, Oregon, Tennessee, Virginia, and Washington. These measures are awaiting governors’ signatures
- Indiana’s approach: A newly signed law in Indiana initially required businesses to round cash transactions not ending in 0 or 5, but a follow-up bill (which is pending approval) would make rounding optional
What It Means for Consumers
If Ohio’s bill is approved, the impact on individual payments would be small—typically just a few cents—yet it could be felt widely by residents who still rely on cash for government transactions.
Symmetrical rounding—rounding up or down to the nearest value (usually 5 cents)—could benefit or disadvantage consumers equally over time.
But, policymakers argue that the change reflects a broader shift toward digital payments and the declining relevance of low-value coins.
For now, Ohio lawmakers must decide whether to join the growing list of states embracing rounding rules—or maintain the status quo while pennies remain in circulation.
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