The Division of Consumer Protection is aware of the current penny shortage and publishes this
advisory letter to help businesses navigate the issue. In consultation with our partners at the
Utah State Tax Commission and Department of Government Operations, we provide the
following guidance:
- Cash only: Price rounding is applicable to cash purchases only where, after the total
amount due is calculated (price + tax), change to the consumer is required.
- Methodology: If a purchase requires change to a consumer, a business may choose how
to round, so long as notice is provided.
The recommended price rounding method is as follows:
o $0.01 or $0.02 round down to $0.00
o $0.03 or $0.04 round up to $0.05
o $0.06 or $0.07 round down to $0.05
o $0.08 or $0.09 round up to $0.10
- Notice: Businesses should clearly and conspicuously disclose their rounding method for cash purchases through prominent signage within the business.
- Taxes: Taxes must be calculated on the actual transaction amount. The cash rounding method occurs after the applicable taxes have been applied to the sale price.
ALL CHARGED TAXES MUST BE REMITTED AS REQUIRED BY LAW.
