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As Amended by House Committee
Session of 2026
HOUSE BILL No. 2797
By Committee on Taxation
Requested by Representative A. Smith
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AN ACT concerning taxation; relating to sales tax; providing for the
rounding of final transaction amount if payment is made with cash.
Be it enacted by the Legislature of the State of Kansas:
Section 1. (a) As long as the one cent coin is legal tender in the
United States, the determination of full remittance of payment shall be
calculated as follows:
(1) For cash transactions:
(A) If the final transaction amount is less than $0.05, the transaction
shall be rounded up to $0.05 unless exact remittance can be provided; or
(B) if the final transaction amount exceeds $0.05 and cannot be
provided as remittance by the payer or the exact amount of change cannot
be provided by the payee, the following rounding rules shall apply:
(i) Transactions ending in 1, 2, 6 or 7 cents shall be rounded down to
the nearest nickel; or
(ii) transactions ending in 3, 4, 8 or 9 cents shall be rounded up to the
nearest nickel.
(2) For noncash transactions, the final transaction amount shall be
calculated by rounding to the nearest one cent.
(3) In mixed-tender transactions in which both cash and noncash
are used as payment for the transaction, rounding applies solely to the
cash portion of the payment.
(b) An entity accepting cash payment shall apply rounding practices
in a consistent and transparent manner at the point of transaction.
Rounding to the nearest amount divisible by five cents under this section
applies solely to the payment amount tendered and does not alter the sales
price, the amount of tax owed or collected or any surcharges, assessments
or applicable fees imposed on the sale.
(c) An entity accepting only specific payment types shall apply such
policy in a consistent and transparent manner at the point of transaction.
(d) For the purpose of this section:
(1) "Cash" includes United States legal tender in the form of currency
and coins, including federal reserve notes;
(2) "cash transaction" means the use of cash as payment in a
transaction. "Cash transaction" includes, but is not limited to,
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HB 2797—Am. by HC 2
deposits, withdrawals, exchanges of currency or other payments or
transfers;
(3) "final transaction amount" includes all applicable fees, surcharges,
sales and use taxes, duties, rebates and other charges to be included or
deducted in order to calculate the total due to satisfy 100% payment of the
transaction; and
(3)(4) "noncash" includes checks, money orders, cashier's checks,
coupons, rebate certificates, debit or credit cards, gift cards, any digital or
electronic form of payment, including, but not limited to, EBT, ACH or
wire transfer, and any other form of payment not considered cash under the
provisions of this section.
Sec. 2. This act shall take effect and be in force from and after its
publication in the statute book.
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