THE POTENTIAL DEMISE OF PENNIES is driving states to rethink how sales and excise tax programs will work if the smallest coin minted is a nickel. Along with internal discussions, three multistate organizations have had informal meetings with the Treasury Department, with much of the discussion focused on how and when one-cent coins might be retired.
- States must consider how to modify tax compliance rules to adapt to cash transactions rounded to the nearest nickel—a shift that could have implications for overall revenue collections. Administrators also would have to determine whether to treat cash and electronic transactions differently.
- “There’s a ...