Missouri's Department of Revenue recently issued guidance on House Bill 2819, which allows vendors to round cash transaction totals to the nearest five cents starting August 28, 2026.
A Letter From the Missouri Department of Revenue:
The Department of Revenue (DOR) is issuing this letter to provide information regarding recently passed legislation (HB 2819 that goes into effect August 28, 2026) that allows vendors to round purchase totals on cash transactions.
The purpose of this legislation is to simplify low‑denomination cash handling, reduce reliance on pennies, and ensure proper sales tax collection and remittance.
Key Provisions for Retailers and Businesses:
•Rounding applies only to CASH transactions
•Rounding may be used only on the final total of a purchase, after all items, discounts, and taxes have been calculated.
- Round Down: Final cent totals ending in 1, 2, 6, or 7.
- Round Up: Final cent totals ending in 3, 4, 8, or 9.
- Examples: A $1.92 total rounds down to $1.90. A $1.93 total rounds up to $1.95.
•Non‑cash payments must NOT be rounded.
Credit, debit, mobile/online payments, checks, or any non‑cash method must reflect the exact calculated amount with no rounding.
•Rounding does not change your tax obligations.
Sales tax must continue to be calculated and remitted exactly as required. Rounding affects only the customer‑facing cash total not the tax you report.
•Good‑faith protection is included.
Businesses that follow the law's rounding rules in good faith are not considered in violation of any state or local regulation or standard.
•No impact on local tax distribution.
The state's existing process for handling under‑remitted local taxes remains unchanged.
What This Means for Your Business
You may begin using penny‑rounding on cash transactions starting August 28, 2026. You are not required to round; this is optional. There are no changes to how you calculate, report, or remit sales tax. You may want to update staff procedures or point‑of‑sale instructions to ensure rounding is applied properly and only when allowed.
Need Assistance?
If you have questions or want help implementing this change, please contact the Missouri Department of Revenue at 573-751-7200 or salesuse@dor.mo.gov. We are committed to supporting retailers as the new law takes effect.
Sincerely,
Missouri Department of Revenue