With the federal government discontinuing the penny, cities across the country are adjusting how they handle cash payments. Here in Phoenix, we are implementing a clear, consistent, and customer‑friendly process to ensure residents can continue to make smooth cash transactions—without needing one‑cent coins.
These changes follow Arizona House Bill 2938 (HB 2938), which established statewide rules for handling cash totals when pennies are no longer available. The law, now in effect, requires what’s known as Swedish rounding: adjusting the final cash total (after taxes and fees) to the nearest five‑cent increment.
How Rounding Works
Only the final total is rounded—never individual item prices, taxes, or fees.
- If the total ends in 1–2 cents → round down
- 3–4 cents → round up
- 6–7 cents → round down
- 8–9 cents → round up
- 0 or 5 cents → no change
For example:
- $12.03 becomes $12.05
- $7.06 becomes $7.05
The maximum difference on any transaction is just two cents…