Senate Bill 365 Alabama 2026 Session

Summary

Primary Sponsor

Jay HoveySenator

Republican

Session

2026 Regular Session

Title

Legal tender; authorizing the rounding of in-person cash transactions to the nearest five cents

Summary

SB365 would authorize rounding in-person cash transactions to the nearest five cents in Alabama.

What This Bill Does

If enacted, the bill would let merchants round the total amount of an in-person cash transaction to the nearest five cents using a rule set based on the final cents digit. The rules are: 1-2 round down to 0; 3-4 round up to 5; 6-7 round down to 5; 8-9 round up to 0; 0 or 5 stay the same. The rounding does not change prices, taxes, or other charges, and applies only to cash payments. If a transaction uses both cash and another payment method, rounding applies only to the cash portion, and non-cash payments are not affected. The Department of Revenue must post notice on its website about when rounding can begin, and the act would take effect immediately.

Who It Affects

• Cash-paying customers in Alabama would have their in-person cash transactions rounded to the nearest five cents.
• Retailers and other in-person merchants handling cash would implement the rounding rules for the cash portion of transactions.

Key Provisions

• Rounding of in-person cash transactions to the nearest five cents using a specified cents-digit rule.
• Rounding rules: 1-2 -> down to 0; 3-4 -> up to 5; 6-7 -> down to 5; 8-9 -> up to 0; 0 or 5 -> no rounding.
• Rounding does not alter sale price, sales tax, or any surcharges/fees, and does not apply to non-cash payments.
• If a transaction uses both cash and another payment method, only the cash portion is rounded.
• Government payments are not affected by the rounding.
• The Department of Revenue must post a notice on its website about when rounding can begin.
• The act becomes effective immediately.

AI-generated summary using openai/gpt-5-nano-2025-08-07 on Mar 11, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Consumer Protection