Penny’s Threatened Death Drives States to Rethink Sales Tax Math

State tax administrators are preparing for a retail environment without pennies as cost-cutting momentum grows for the US Treasury to stop minting the zinc and copper coins.

Three multistate organizations focused on revenue policy are examining the emerging penny proposals and the possible impact on state sales and excise tax programs. The groups have also had informal meetings with the Treasury Department, with much of the discussion focused on how and when one-cent coins might be retired.

At a minimum, the states will have to consider how to modify their tax compliance rules to adapt to cash transactions that ...