Shrinking Penny Supply Has Businesses Grappling With Sales Taxes

With pennies fast disappearing, pressure is mounting for states to offer guidance on rounding issues that impact sales taxes.

Penny shortages had already started developing in some states before the US Treasury Department announced it had minted its last-ever one-cent piece on Wednesday in Philadelphia. The supply dropped faster than anticipated, outpacing regulators’ ability to establish parameters for rounding up or down to the nearest nickel.

Rounding creates uncertainty, specifically around sales, use and excise taxes, because it generally adjusts the final amount a customer pays. If the transaction is rounded up to the nearest nickel, the total now ...