With production of new pennies ended and the coins expected to become increasingly scarce, New Jersey lawmakers Thursday advanced a bill setting rules for how businesses could round cash transactions to the nearest nickel.
“I think this is going to do away with one of my favorite expressions, which is ‘Watch your pennies and your dollars will fall into place,’” joked Assembly Member Dan Hutchinson, a Democrat from Gloucester, during the Assembly Financial Institutions and Insurance Committee hearing.
The U.S. Mint stopped making pennies in November 2025, but old copper-colored coins remain in circulation.
A5233, sponsored by Democratic Assembly Member Roy Freiman of Hillsborough, would make cash transaction rounding optional for businesses.
However, if business owners choose to round cash purchases, they must round to the nearest nickel. Transaction totals ending in 1 or 2 cents, or 6 or 7 cents, would be rounded down to the nearest nickel. For example, a $5.11 cash purchase would be rounded to $5.10.
Cash sales ending in 3 or 4 cents, or 8 or 9 cents, would be rounded up. A cash purchase of $10.58, for example, would be rounded to $10.60. The bill specifies those rounding rules.
The provisions would apply to cash transactions only. Credit or debit cards, checks, wire transfers and other forms of non-physical payment would not be rounded.
The legislation also allows flexibility for charitable donations, as long as the customer consents to the additional charge. Consumers could choose to donate the difference through round-up charity programs.
The bill includes penalties for violations. Businesses would face a $1,000 fine for a first offense and $2,500 for a second violation. Subsequent violations would carry $5,000 penalties.
The legislation advanced from the Assembly Financial Institutions and Insurance Committee in a 12-0 vote, with Assembly Member Robert Auth, a Republican from Old Tappan, abstaining without comment.
An identical Senate measure advanced unanimously from the Senate Commerce Committee in May in a 5-0 vote and was referred to the Senate Budget and Appropriations Committee.
By Shohini Mitra, NJ State House News Service
