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HB954 • 2026

Rounding procedures; taxes and fees calculated, report.

An Act to amend the Code of Virginia by adding in Article 1 of Chapter 2 of Title 6.2 sections numbered 6.2-200.1 and 6.2-200.2, relating to rounding procedures.

Taxes
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Watts
Last action
2026-04-13
Official status
Acts of Assembly Chapter
Effective date
Not listed

Plain English Breakdown

The official source does not specify exact rules for adjusting tax bills after July 1, 2027.

Rounding Procedures for Taxes and Fees

This law sets rules for rounding cash transactions to the nearest five cents and allows local governments to adjust tax bills due to the end of penny production until July 1, 2027.

What This Bill Does

  • Allows businesses to round down cash sales ending in 1, 2, 6, or 7 cents to the nearest number divisible by five.
  • Requires businesses to round up cash sales ending in 3, 4, 8, or 9 cents to the nearest number divisible by five.
  • Requires taxes and fees to be calculated before rounding down or up.
  • Gives local governments permission to make temporary rules for adjusting tax bills due to no pennies being made until July 1, 2027.

Who It Names or Affects

  • Businesses that sell goods or services in cash transactions
  • Local governments making rules about adjusting tax bills

Terms To Know

rounding procedures
Rules for rounding numbers to the nearest five cents.
cash transaction
An exchange of money in person, like buying something with cash.

Limits and Unknowns

  • The exact rules for adjusting tax bills after July 1, 2027 are not clear.
  • It is unclear how local governments will use their power to make temporary rules.
  • The Department of Taxation's recommendations may change the way all localities handle cash transactions.

Bill History

  1. 2026-04-13 Governor

    Approved by Governor-Chapter 713 (effective 7/1/2026)

  2. 2026-04-13 Governor

    Acts of Assembly Chapter text (CHAP0713)

  3. 2026-03-23 House

    Fiscal Impact statement From TAX (3/23/2026 9:36 am)

  4. 2026-03-14 House

    Enrolled Bill communicated to Governor on March 14, 2026

  5. 2026-03-14 Governor

    Governor's Action Deadline 11:59 p.m., April 13, 2026

  6. 2026-03-13 House

    Signed by Speaker

  7. 2026-03-13 Senate

    Signed by President

  8. 2026-03-13 House

    Enrolled

  9. 2026-03-13 House

    Bill text as passed House and Senate (HB954ER)

  10. 2026-03-06 House

    Senate substitute agreed to by House (97-Y 0-N 0-A)

  11. 2026-03-04 Senate

    Read third time

  12. 2026-03-04 Senate

    Engrossed by Senate - committee substitute

  13. 2026-03-04 Senate

    Passed Senate with substitute Block Vote (40-Y 0-N 0-A)

  14. 2026-03-04 Finance and Appropriations

    Committee substitute printed 26109042D-S1

  15. 2026-03-04 Finance and Appropriations

    Finance and Appropriations Substitute agreed to

  16. 2026-03-04 Senate

    Passed Senate with substitute Block Vote (40-Y 0-N 0-A)

  17. 2026-03-03 Finance and Appropriations

    Reported from Finance and Appropriations with substitute (15-Y 0-N)

  18. 2026-03-03 Senate

    Rules suspended

  19. 2026-03-03 Senate

    Passed by for the day

  20. 2026-03-03 Senate

    Constitutional reading dispensed Block Vote (on 2nd reading) (40-Y 0-N 0-A)

  21. 2026-03-03 Senate

    Passed by for the day Block Vote (Voice Vote)

  22. 2026-02-21 Finance

    Fiscal Impact statement From TAX (2/21/2026 3:02 pm)

  23. 2026-02-18 Senate

    Constitutional reading dispensed (on 1st reading)

  24. 2026-02-18 Finance and Appropriations

    Referred to Committee on Finance and Appropriations

  25. 2026-02-17 House

    Read third time and passed House Block Vote (97-Y 0-N 0-A)

  26. 2026-02-16 House

    Read second time

  27. 2026-02-16 House

    committee substitute agreed to

  28. 2026-02-16 House

    Engrossed by House - committee substitute

  29. 2026-02-13 House

    Read first time

  30. 2026-02-12 Finance

    Committee substitute printed 26107179D-H1

  31. 2026-02-11 Finance

    Reported from Finance with substitute (21-Y 0-N)

  32. 2026-02-10 Subcommittee #2

    House subcommittee offered

  33. 2026-02-10 Subcommittee #2

    Subcommittee recommends reporting with substitute (10-Y 0-N)

  34. 2026-02-09 Subcommittee #2

    House subcommittee offered

  35. 2026-02-06 Subcommittee #2

    Assigned HFIN sub: Subcommittee #2

  36. 2026-01-26 House

    Fiscal Impact statement From TAX (1/26/2026 9:36 pm)

  37. 2026-01-13 House

    Prefiled and ordered printed; Offered 01-14-2026 26102500D

  38. 2026-01-13 Finance

    Referred to Committee on Finance

Official Summary Text

Rounding procedures.
Provides for rounding procedures in certain cash transactions and authorizes the governing body of a locality to by ordinance set temporary procedures for the adjustment of bills and account balances for taxes and other charges due to the locality to account for the cessation of production of the penny coin by the United States Mint until July 1, 2027. The bill also directs the Department of Taxation to evaluate options and recommend a uniform procedure for such adjustments and balances for all localities of the Commonwealth and report its findings and recommendations no later than November 1, 2026.

Current Bill Text

Read the full stored bill text 
An Act to amend the Code of Virginia by adding in Article 1 of Chapter 2 of Title 6.2 sections numbered
6.2-200.1
and
6.2-200.2
, relating to rounding procedures.
Be it enacted by the General Assembly of Virginia:
1. That the Code of Virginia is amended by adding in Article 1 of Chapter 2 of Title 6.2 sections numbered
6.2-200.1
and
6.2-200.2
as follows:
§
6.2-200.1
. Rounding procedures.
Any person selling goods or services in a cash transaction, entering into any transaction that results in a payment or transfer of cash between the parties to the transaction, or paying cash wages to an employee as compensation:
1. In any case in which the total transaction amount, including any taxes, ends with one, two, six, or seven as the final digit of the number of cents for the transaction, may round down such number of cents to the nearest number of cents divisible by five; and
2. In any case in which the total transaction amount, including any taxes, ends with three, four, eight, or nine as the final digit of the number of cents for the transaction, may round up such number of cents to the nearest number of cents divisible by five.
§
6.2-200.2
. Taxes and fees calculated before rounding.
A. Any person selling goods or services, or any public or private entity entering into any transaction that results in a payment or transfer of cash between the parties to the transaction, shall calculate and remit all taxes and fees, and other charges imposed by state taxing authorities or by the seller, based on the sales price or stated service fee prior to any cash transaction rounding.
B. Any person selling goods or services shall not be in violation of any state or municipal requirements, laws, regulations, or standards based on any action taken in compliance with this section.
2. That notwithstanding the provisions of §§
6.2-200.1
and
6.2-200.2
of the Code of Virginia, as created by this act, the governing body of any locality may by ordinance prescribe temporary procedures that shall expire no later than July 1, 2027, for the adjustment of bills and account balances for taxes and other charges due to the locality and paid for by a cash transaction to account for the cessation of production of the penny coin by the United States Mint. Any such ordinance may provide for the rounding of such bills and account balances to the nearest five-cent increment and the write-down or write-off of sums due that are less than five cents.
3. That the Department of Taxation shall evaluate options and recommend a uniform procedure by which all localities of the Commonwealth shall adjust bills and account balances for taxes and other charges due to each locality and paid for by a cash transaction to account for the cessation of production of the penny coin by the United States Mint. Such evaluation shall consider whether to provide for the rounding of such bills and account balances to the nearest five-cent increment and the write-down or write-off of sums due that are less than five cents. The Department of Taxation shall report the findings of its evaluation and any recommendations to the Chairs of the Senate Committee on Finance and Appropriations and the House Committee on Appropriations no later than November 1, 2026.