CaliforniaCalifornia businesses at physical locations must round cash sales over two cents starting July 2027
Starting July 1, 2027, businesses selling at physical California locations must round the cash-paid part of sales over two cents to the nearest five cents, including when buyers also pay by card.
What it does
Starting July 1, 2027, businesses selling at physical California locations must round the cash-paid part of sales over two cents to the nearest five cents. They must also round refunds for sales paid wholly or partly in cash.
Starting July 1, 2027, cash rounding must not change how covered taxes, fees, and added charges are calculated for sales at physical California businesses. State tax officials may write rules for these calculations.
Starting July 1, 2027, private people and businesses collecting payment for covered retail sales at physical California businesses cannot charge more than rounding allows. Existing overcharge penalties apply. The ban excludes tax calculations, reports, and payments handled by the state tax agency.
Argument forStarting July 1, 2027, cash-paying customers at physical California businesses could save up to two cents on sales over two cents when totals round down.
Argument againstStarting July 1, 2027, cash-paying customers at physical California businesses might pay up to two cents more on sales over two cents when totals round up.
More detail
Private businesses selling at physical California locations must round cash-paid sale amounts and refunds for sales paid wholly or partly in cash to five-cent amounts. This covers goods and services sold at physical California locations, including payments made in installments under a sales contract. Sales totaling two cents or less and payments made entirely without cash are exempt. For payments made partly in cash, only the cash-paid part rounds; the amount processed without cash stays exact. The rounding rules start July 1, 2027.
Cash-rounding adjustments must not change calculations for covered taxes, fees, or added charges. This covers taxes, fees, and added charges tied to rounded sales, including amounts collected from buyers to cover those charges. The rule excludes charges imposed under three specified parts of California's tax code. The California Department of Tax and Fee Administration may write rules for these calculations. This calculation rule starts July 1, 2027.
Private people and businesses collecting payment for retail sales subject to cash rounding must not charge more than the rounded amount. This covers retail sales subject to cash rounding at businesses selling goods or services at physical California locations. State and local governments are excluded. Violations face the same remedies and penalties as covered overcharges. The ban does not cover calculating, reporting, or paying taxes, fees, or added charges handled by the state tax agency. This overcharge rule starts July 1, 2027.
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Where it stands
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 30Chaptered by Secretary of State - Chapter 896, Statutes of 2026.Latest
- Sep 30Approved by the Governor Gavin Newsom.Became Law
- Aug 28Enrolled and presented to the Governor at 3:30 p.m.To Governor
- Aug 24Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 68. Noes 1. Page 6415.).Major
- Vote recorded AB 1793 Ward Concurrence in Senate Amendments. Result: pass.Lower
- Aug 20In Assembly. Concurrence in Senate amendments pending.
- Vote recorded 3rd Reading AB1793 Ward et al. By Caballero. Result: pass.Upper
- Aug 20Read third time. Passed. Ordered to the Assembly. (Ayes 30. Noes 5. Page 5582.).Passed Senate
- Aug 12Read second time. Ordered to third reading.Minor
- Aug 11Read third time and amended. Ordered to second reading.Major
- Aug 4Read second time. Ordered to third reading.Minor
- Aug 3From committee: Be ordered to second reading pursuant to Senate Rule 28.8.Minor
- Jun 25Read second time and amended. Re-referred to Com. on APPR.Major
- Jun 24From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 4. Noes 0.) (June 24).Major
- Vote recorded Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]. Result: pass.Upper
- Jun 22From committee: Do pass and re-refer to Com. on REV. & TAX. (Ayes 7. Noes 2.) (June 22). Re-referred to Com. on REV. & TAX.Minor
- Vote recorded Do pass, but first be re-referred to the Committee on [Revenue and Taxation]. Result: pass.Upper
- Jun 10Referred to Coms. on B. P. & E.D. and REV. & TAX.Minor
- May 21In Senate. Read first time. To Com. on RLS. for assignment.Minor
- Vote recorded AB 1793 Ward Assembly Third Reading. Result: pass.Lower
- May 21Read third time. Passed. Ordered to the Senate. (Ayes 62. Noes 1. Page 5197.)Passed Assembly
- May 18Read second time. Ordered to third reading.Minor
- May 14From committee: Do pass. (Ayes 11. Noes 0.) (May 14).Minor
- Vote recorded Do pass. Result: pass.Lower
- May 6In committee: Set, first hearing. Referred to APPR. suspense file.Minor
- Apr 21From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (April 20). Re-referred to Com. on APPR.Minor
- Apr 20
- Vote recorded Do pass and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
- Apr 8Re-referred to Com. on B. & F.Minor
- Apr 7From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & F. Read second time and amended.Major
- Feb 23Referred to Com. on B. & F.Minor
- Feb 11From printer. May be heard in committee March 13.
- Feb 10Read first time. To print.Introduced
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