The state Department of Revenue today issued guidelines for retailers on what to do as pennies come out of circulation now that they're no longer being minted.

Businesses may choose to round cash transactions to the nearest five cents to make change.

Key points for businesses:

• Sales tax must be calculated on the exact purchase price;
• Sales tax must be calculated before any rounding is applied;
• Rounding applies only to the final cash total, not individual item prices;
• Displayed item prices must match the price charged at checkout.

 DOR’s guidance makes clear that rounding a cash payment does not change the amount of sales tax owed. Businesses must calculate and collect sales tax based on the exact purchase price, even if the final cash total is rounded up or down. 

Complete state penny-rounding guidance.