This amendment allows businesses in Alabama to round the total cost of cash-only purchases up or down to the nearest five cents using a specific set of rules.
Alabama2026Enacted
HB545
Rounding Cash Transactions to the Nearest Five Cents
Last scannedAug 24, 2026, 9:06 AM
In one sentence
This law allows businesses in Alabama to round in-person cash payments up or down to the nearest five cents, but it does not change sale prices and excludes government transactions.
What it does
- Allows rounding of in-person cash transactions to the nearest five cents using specific rules based on the final digit of the amount.
- States that rounding changes only the payment or change given, not the actual sale price, tax collected, or fees.
- Excludes all non-cash payments like credit cards, checks, gift cards, money orders, and electronic transfers from this rule.
- Prohibits rounding for any transaction where payment is made to a state or local government agency.
- Requires the Department of Revenue to post a notice on its website about this new authority.
Who it affects
- Businesses that accept in-person cash payments
- Customers who pay with physical cash for goods and services
- The Alabama Department of Revenue
Limits and unknowns
- The law does not apply to payments made with credit cards, checks, gift cards, money orders, electronic transfers, or any non-cash method.
- Rounding is strictly forbidden for transactions where payment goes directly to a state or local government agency.
Plain language
Terms to know
- In-person cash transaction
- A purchase where the buyer pays using physical money while present at the location.
- Governmental entity
- Any state or local agency, department, office, or instrumentality located in Alabama.
Official record
Sources
Official summary
This act: (1) authorizes the rounding of in-person, cash transactions to the nearest five cents, except payment to state or local governmental entities; (2) provides that rounding a transaction does not affect the sale price or sales tax collected; and (3) authorizes rounding to be applied to the amount of the transaction or the amount of change tendered to customers.
Official activity
Bill history
- EnactedHouse
- Motion to Read a Third Time and Pass - Adopted Roll Call 1179 (Yeas 31, Nays 1)Senate
- Hovey motion to Table - Adopted Roll Call 1178 (Yeas 25, Nays 8)Senate
- Third Reading in Second House (Yeas 31, Nays 0)Senate
- Delivered to GovernorHouse
- Signature RequestedSenate
- EnrolledHouse
- Ready to EnrollHouse
- Figures 1st Amendment OfferedSenate
- Read for the Second Time and placed on the CalendarSenate
- Reported Out of Committee Second HouseSenate
- Pending Committee Action in Second HouseSenate
- Read for the first time and referred to the Senate Committee on Banking and InsuranceSenate
- Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 1019 (Yeas 100, Nays 1)House
- Motion to Adopt - Adopted Roll Call 1018 (Yeas 101, Nays 1)House
- Third Reading in House of Origin (Yeas 101, Nays 1)House
- EngrossedHouse
- Financial Services Engrossed Substitute OfferedHouse
- Read for the Second Time and placed on the CalendarHouse
- Reported Out of Committee House of OriginHouse
Changes
Amendments
2 stored
This amendment requires stores that round cash transactions up by five cents to send that extra money to a school fund, while letting them keep the savings from rounding down.