Read the full stored bill text
EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
Italics indicate opposite chamber/conference committee amendments.
*sb0893*
SENATE BILL 893
C2, K3 EMERGENCY BILL (6lr2932)
ENROLLED BILL
— Finance/Economic Matters —
Introduced by Senator Gile
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at _________________ _______ o’clock, ________M.
______________________________________________
President.
CHAPTER ______
AN ACT concerning 1
Business Regulation – Rounding Cash Transactions – Authorization 2
FOR the purpose of authorizing a merchant to round the portion of the price of a certain 3
cash transactions transaction for which a customer pays using cash in a certain 4
manner or round the amount of change due to a customer in a certain manner; 5
authorizing an employer to round a wage that the employer pays using cash in a 6
certain manner; providing that certain provisions of this Act shall preempt existing 7
regulations, rules, and ordinances that conflict with certain provisions of this Act; 8
altering the definition of “taxable price” for the purposes of certai n provisions of law 9
governing the State sales and use tax to clarify the exclusion from the tax of a certain 10
amount collected due to rounding the price for a good or service in accordance with 11
certain provisions of this Act; and generally relating to rounding cash transactions. 12
BY adding to 13
Article – Business Regulation 14
2 SENATE BILL 893
Section 1 –601 through 1–607 1–606 to be under the new subtitle “Subtitle 6. 1
Rounding Cash Transactions in a Trade or Business” 2
Annotated Code of Maryland 3
(2024 Replacement Volume and 2025 Supplement) 4
BY repealing and reenacting, without amendments, 5
Article – Labor and Employment 6
Section 3–502(a) 7
Annotated Code of Maryland 8
(2025 Replacement Volume) 9
BY adding to 10
Article – Labor and Employment 11
Section 3–502(g) 12
Annotated Code of Maryland 13
(2025 Replacement Volume) 14
BY repealing and reenacting, without amendments, 15
Article – Tax – General 16
Section 11–101(a) and (l)(1) 17
Annotated Code of Maryland 18
(2022 Replacement Volume and 2025 Supplement) 19
BY repealing and reenacting, with amendments, 20
Article – Tax – General 21
Section 11–101(l)(3) 22
Annotated Code of Maryland 23
(2022 Replacement Volume and 2025 Supplement) 24
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 25
That the Laws of Maryland read as follows: 26
Article – Business Regulation 27
SUBTITLE 6. ROUNDING CASH TRANSACTIONS IN A TRADE OR BUSINESS. 28
1–601. 29
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 30
INDICATED. 31
(B) (1) “CASH” MEANS UNITED STATES COINS AND CURRENCY. 32
(2) “CASH” DOES NOT INCLUDE: 33
SENATE BILL 893 3
(I) A PAPER INSTRUMENT O THER THAN A FEDERAL RESERVE 1
NOTE; OR 2
(II) A GIFT CARD. 3
(C) “CUSTOMER” MEANS A PURCHASER OF A GOOD OR SERVICE FR OM A 4
MERCHANT. 5
(D) “MERCHANT” MEANS A PERSON ENGAGED IN THE TRADE OR B USINESS 6
OF THE SALE OF GOODS OR SERVICES. 7
(E) “TOTAL PRICE PRICE” MEANS THE PRICE AMOUNT DUE AND PAYAB LE 8
BY A CUSTOMER IS RESPONSIBLE FOR P AYING FOR A GOOD OR SERVIC E AFTER A 9
MERCHANT: 10
(1) SUBTRACTS ANY DISCOUNT OR DEDUCTION; AND 11
(2) APPLIES ANY APPLICABLE TAX OR FEE; AND 12
(3) ROUNDS THE TRANSACTION CONSISTENT WITH THIS SUBTITLE. 13
1–602. 14
THIS SUBTITLE: 15
(1) DOES NOT APPLY TO A CASH TRANSACTION FOR A GO OD OR 16
SERVICE IN EXCHANGE FOR PAID WITH EXACT CHANGE; AND 17
(2) MAY NOT BE CONSTRUED TO AUTHORIZE A MERCHANT TO ROUND 18
A PRICE FOR A GOOD OR SERVICE IN A MANNER THAT ALTERS THE CALCULATION OF 19
ANY TAX OR FEE APPLICABLE TO THE TRANSACTION. 20
1–603. 21
(A) THIS SECTION APPLIES TO: 22
(1) THE PORTION OF THE PRICE OF AN IN –PERSON, CASH 23
TRANSACTION IF THE PRICE TOTALS AT LEAST 5 CENTS; OR 24
(2) OR A TELEPHONE, MAIL, OR INTERNET TRANSACTION FOR 25
WHICH A CUSTOMER PAYS USING CASH IF THE PRICE TOTALS AT LEAST 5 CENTS. 26
4 SENATE BILL 893
(B) NOTWITHSTANDING ANY O THER PROVISION OF LA W, A MERCHANT 1
DOING BUSINESS IN THE STATE MAY: 2
(1) DETERMINE THE TOTAL PRICE OF ROUND THE PRICE FOR A GOOD 3
OR SERVICE, AFTER SUBTRACTING ANY DISCOUNT OR DEDUCTION FROM THE PRICE 4
AND APPLYING ANY APP LICABLE TAX OR FEE T O THE PRICE , IN THE FOLLOWING 5
MANNER: 6
(I) IF THE PRICE ENDS IN 1 CENT, 2 CENTS, 6 CENTS, OR 7 7
CENTS, BY ROUNDING THE PRICE DOWN TO THE NEAREST CENT DIVISIBLE BY FIVE; 8
OR 9
(II) IF THE PRICE ENDS IN 3 CENTS, 4 CENTS, 8 CENTS, OR 9 10
CENTS, BY ROUNDING THE PRICE UP TO THE NEAREST CENT DIVISIBLE BY FIVE; OR 11
(2) ROUND THE AMOUNT OF CHANGE DUE TO A CUST OMER UP OR 12
DOWN CONSISTENT WITH ITEM (1) OF THIS SUBSECTION. 13
1–604. 14
(A) THIS SECTION APPLIES TO: 15
(1) THE PORTION OF THE PRICE OF AN IN –PERSON, CASH 16
TRANSACTION IF THE PRICE TOTALS LESS THAN 5 CENTS; OR 17
(2) OR A TELEPHONE , MAIL, OR INTERNET TRANSACTION FOR 18
WHICH A PERSON CUSTOMER PAYS USING CASH IF THE PRICE TOTALS LESS THAN 5 19
CENTS. 20
(B) NOTWITHSTANDING ANY O THER PROVISION OF LA W, A MERCHANT 21
DOING BUSINESS IN THE STATE MAY DETERMINE THE TOTAL PRICE OF ROUND THE 22
PRICE FOR A GOOD OR SERVICE , AFTER SUBTRACTING AN Y DISCOUNT OR 23
DEDUCTION FROM THE PRICE AND APPLYING ANY APPLICABLE TAX OR FEE TO THE 24
PRICE, BY ROUNDING THE PRICE UP TO 5 CENTS. 25
1–605. 26
AN EMPLOYER , AS DEFINED IN § 3–501 OF THE LABOR AND EMPLOYMENT 27
ARTICLE, MAY ROUND A WAGE , AS DEFINED IN § 3–501 OF THE LABOR AND 28
EMPLOYMENT ARTICLE, THAT THE EMPLOYER PAYS USING CASH CONSISTENT WITH 29
THIS SUBTITLE. 30
1–606. 1–605. 31
SENATE BILL 893 5
THIS SUBTITLE SUPERSEDES ANY REGULATION, RULE, OR ORDINANCE THAT 1
CONFLICTS WITH THIS SUBTITLE. 2
1–607. 1–606. 3
THE SECRETARY MAY ADOPT REGULATIONS TO CARRY OUT THE PROVISIONS 4
OF THIS SUBTITLE. 5
Article – Labor and Employment 6
3–502. 7
(a) (1) Each employer: 8
(i) shall set regular pay periods; and 9
(ii) except as provided in paragraph (2) of this subsection, shall pay 10
each employee at least once in every 2 weeks or twice in each month. 11
(2) An employer may pay an administrative, executive, or professional 12
employee less frequently than required under paragraph (1)(ii) of this subsection. 13
(G) AN EMPLOYER MAY ROUND A WAGE THAT THE EMPL OYER PAYS USING 14
CASH, AS DEFINED IN § 1–601 OF THE BUSINESS REGULATION ARTICLE, 15
CONSISTENT WITH TITLE 1, SUBTITLE 6 OF THE BUSINESS REGULATION ARTICLE. 16
Article – Tax – General 17
11–101. 18
(a) In this title the following words have the meanings indicated. 19
(l) (1) “Taxable price” means the value, in money, of the consideration of any 20
kind that is paid, delivered, payable, or deliverable by a buyer to a vendor in the 21
consummation and complete performance of a sale without deduction for any expense or cost, 22
including the cost of: 23
(i) any labor or service rendered; 24
(ii) any material used; or 25
(iii) any property, digital code, or digital product sold. 26
(3) “Taxable price” does not include: 27
6 SENATE BILL 893
(i) a charge that is made in connection with a sale and is stated as a 1
separate item of the consideration for: 2
1. a delivery, freight, or other transportation service for 3
delivery directly to the buyer by the vendor or by another person acting for the vendor, unless 4
the transportation service is a taxable service; 5
2. a finance charge, interest, or similar charge for credit 6
extended to the buyer; 7
3. a labor or service for application or installation; 8
4. a mandatory gratuity or service charge in the nature of a 9
tip for serving food or beverage to a group of 10 or fewer individuals for consumption on the 10
premises of the vendor; 11
5. a professional service; 12
6. a tax: 13
A. imposed by a county on the sale of coal, electricity, oil, 14
nuclear fuel assemblies, steam, or artificial or natural gas; 15
B. imposed under § 3–302(a) of the Natural Resources Article, 16
as a surcharge on electricity, and added to an electric bill; 17
C. imposed under §§ 6 –201 through 6 –203 of the Tax – 18
Property Article, on tangible personal property subject to a lease that is for an initial period 19
that exceeds 1 year and is noncancellable except for cause; or 20
D. imposed under § 4–102 of this article on the gross receipts 21
derived from an admissions and amusement charge; 22
7. any service for the operation of equipment u sed for the 23
production of audio, video, or film recordings; or 24
8. reimbursement of incidental expenses paid to a third party 25
and incurred in connection with providing a taxable detective service; 26
(ii) the value of a used component or part (core value) received from a 27
purchaser of the following remanufactured truck parts: 28
1. an air brake system; 29
2. an engine; 30
3. a rear axle carrier; or 31
SENATE BILL 893 7
4. a transmission; 1
(iii) a charge for a nontaxable service that is made in connection with 2
a sale of a taxable communication service, even if the nontaxable charges are aggregated 3
with and not separately stated from the taxable charges for communications services, if the 4
vendor can reasonably identify charges not subject to tax from its books and records that are 5
kept in the regular course of business; [or] 6
(iv) a transportation network company impact fee imposed under § 7
10–408 of the Public Utilities Article; OR 8
(V) AN AMOUNT NOT EXCEEDING 2 CENTS COLLECTED DUE TO 9
ROUNDING THE PRICE F OR A GOOD OR SERVICE IN ACCORDANCE WITH TITLE 1, 10
SUBTITLE 6 OF THE BUSINESS REGULATION ARTICLE. 11
SECTION 2. AND BE IT FURTHER ENACTED, That this Act is an emergency 12
measure, is necessary fo r the immediate preservation of the public health or safety, has 13
been passed by a yea and nay vote supported by three –fifths of all the members elected to 14
each of the two Houses of the General Assembly, and shall take effect from the date it is 15
enacted. 16
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.