AlabamaIn-person cash purchases may be rounded to five cents
People and businesses may round in-person cash purchases to the nearest five cents, while sales tax and sale-related fees remain unchanged.
What it does
For an in-person purchase paid in cash, the amount or the change given may be rounded to the nearest five cents. The sale price, sales tax, and sale-related fees stay the same.
Rounding does not apply to noncash payments or payments to Alabama state and local government entities. For mixed payments, only the cash-paid portion may be rounded.
Argument forCash rounding could make in-person purchases easier to complete when the exact amount includes pennies, using a consistent five-cent rule.
Argument againstCash rounding could make exact change harder for customers when they pay partly in cash, while card and government payments follow different rules.
More detail
In-person cash transactions may be rounded to the nearest five cents. The rule covers the cash-paid portion of purchases made in person. The rounding may apply to the transaction amount or the change given to the customer. It does not change the sale price, sales tax, or fees and assessments imposed on the sale. The act takes effect immediately; the Department of Revenue must post notice on its website that rounding is authorized to begin.
The rounding rule does not apply to noncash payments or payments to government entities. These limits apply to transactions otherwise covered by the in-person cash rounding rule. The rule does not apply to payments made by check, card, gift card, money order, electronic transfer, or another noncash method. For a purchase paid partly in cash and partly another way, rounding applies only to the cash-paid portion. The rule does not affect amounts handled through payment systems that do not use cash. A governmental entity means a state or local agency, or its instrumentality, located in Alabama.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Apr 17EnactedBecame Law
- Apr 7Third Reading in Second House
- Vote recorded Third Reading in Second House. Result: pass.Upper
- Vote recorded Hovey motion to Table - Adopted Roll Call 1178. Result: pass.Upper
- Vote recorded Motion to Read a Third Time and Pass - Adopted Roll Call 1179. Result: pass.Upper
- Apr 7Figures 1st Amendment OfferedMinor
- Apr 7Hovey motion to Table - Adopted Roll Call 1178Major
- Apr 7Motion to Read a Third Time and Pass - Adopted Roll Call 1179Passed Senate
- Apr 7Ready to Enroll
- Apr 7EnrolledTo Governor
- Apr 7Signature Requested
- Apr 7Delivered to GovernorMinor
- Apr 1Reported Out of Committee Second House
- Apr 1Read for the Second Time and placed on the Calendar (Banking and Insurance)Minor
- Mar 31Read for the first time and referred to the Senate Committee on Banking and InsuranceMinor
- Mar 31Pending Committee Action in Second House (Banking and Insurance)
- Mar 19Third Reading in House of Origin
- Vote recorded Motion to Adopt - Adopted Roll Call 1018. Result: pass.Lower
- Vote recorded Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 1019. Result: pass.Lower
- Vote recorded Third Reading in House of Origin. Result: pass.Lower
- Mar 19Financial Services Engrossed Substitute Offered (Financial Services)Minor
- Mar 19Motion to Adopt - Adopted Roll Call 1018Major
- Mar 19Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 1019Passed House
- Mar 19Engrossed
- Mar 10Reported Out of Committee House of Origin (Financial Services)
- Mar 10Read for the Second Time and placed on the Calendar (Financial Services)Minor
- Mar 3Read for the first time and referred to the House Committee on Financial ServicesMinor
- Mar 3Pending Committee Action in House of Origin (Financial Services)Introduced
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