NASHVILLE, TN (WGNS) - The Tennessee House of Representatives has signed off on a plan to help businesses adjust to a world without pennies. House Bill 1744, carried by State Rep. Charlie Baum of Murfreesboro, would let private businesses and financial institutions round cash transactions to the nearest nickel when they don’t have exact change on hand.
Baum said the goal is to give both customers and businesses a clear, predictable system now that the U.S. Mint has stopped producing pennies. “As we adapt to changes in currency production, this legislation protects both consumers and businesses,” he said. He added that putting the rounding rules directly into state law ensures customers know how their change is calculated, and businesses know they’re protected if they follow the formula.
The shift comes after the Mint struck its final pennies in November, following an order from President Donald Trump. The agency had reported an $85.3 million loss on penny production in fiscal year 2024, prompting the move to discontinue the coin.
Under Baum’s bill, rounding would apply only to cash transactions and only when a business or financial institution truly lacks exact change. The legislation spells out a simple formula based on the last digits of the total:
- Amounts ending in 1 or 2 cents would round down to the nearest nickel.
- Amounts ending in 3 or 4 cents would round up.
- Amounts ending in 6 or 7 cents would round down.
- Amounts ending in 8 or 9 cents would round up.
Even with the rounding option, businesses must still calculate and report sales tax to the penny, just as they do now.
The companion bill is still moving through the Senate. If it clears that chamber, it will head to Gov. Bill Lee for his signature.
Charlie Baum represents District 37, which includes part of Rutherford County, and has focused much of his legislative work on financial policy and consumer clarity. This proposal, he said, is simply the next step in helping Tennesseans navigate a small but noticeable change in everyday transactions.
