Georgia CommonsHB 1112: Commerce and trade; rounding of total price of sale of goods or services when using legal tender; provide
Last action May 11, 2026 · Effective Date 2026-07-01
House Bill 1112 would let Georgia merchants round cash sale totals to the nearest five cents when the penny is scarce, instead of requiring exact-cent pricing for in-person purchases.
The summaries below were written by an AI model (claude-sonnet-5) from the text of the bill and are not part of it. Quote the text, not the summary. The stored text is the Enrolled version, the latest LegiScan holds.
In plain language
Georgia law currently expects merchants to charge exact prices down to the penny. HB 1112 adds a new article to the state's trade practices law (O.C.G.A. Title 10, Chapter 1) that lets merchants round the total price of a cash transaction to the nearest five cents. If the total ends in 1, 2, 6, or 7 cents, it rounds down; if it ends in 3, 4, 8, or 9 cents, it rounds up; totals of exactly 1 or 2 cents round up to a nickel. The rounding only applies to face-to-face purchases paid in cash (coins and currency), not to card, check, gift card, or other electronic payments unless cash is given as change. Merchants must still accept exact cash payment if a customer wants to pay the pre-rounded amount, as long as pennies remain legal tender. The bill also says rounding gains or losses are not taxable and shields merchants from being penalized under other state or local rules for following this rounding method.
What the bill does
- Creates a new article in Georgia's trade practices law (O.C.G.A. Title 10, Chapter 1) letting merchants round cash sale totals to the nearest five cents.
- Sets specific rounding rules: totals ending in 1,2,6, or 7 cents round down; totals ending in 3,4,8, or 9 cents round up; totals of exactly 1 or 2 cents round up to a nickel.
- Limits the rounding option to in-person cash transactions, excluding card, check, gift card, and other electronic payments unless cash change is given.
- Requires merchants to still accept exact cash payment for the pre-rounded total as long as pennies remain legal tender.
- Exempts any gains or losses from rounding from state or local taxation.
- Protects merchants from being found in violation of other state, county, or local rules solely for following this rounding method.
Who it affects
Retailers and other businesses that take in-person cash payments, their customers who pay with coins and cash, and state and local tax authorities, since the bill changes how cash totals are calculated and shields merchants from certain local penalties tied to rounding.
Why it matters
With pennies becoming harder for businesses to obtain, this bill gives cash-accepting merchants a clear, legal way to round totals to the nearest nickel instead of struggling to make exact change, while making sure customers can still insist on paying the exact pre-rounded amount if they have it.
Key provisions
- Section 1 adds Article 38 to Chapter 1 of Title 10, defining 'legal tender' as U.S. coins and currency and 'merchant' as anyone selling goods or services in face-to-face transactions.
- O.C.G.A. § 10-1-971(a) sets the rounding formula applied after taxes are totaled, rounding to the nearest five cents based on the final digit.
- O.C.G.A. § 10-1-971(b) limits rounding to cash transactions and excludes electronic or card-based payments unless cash change is disbursed.
- O.C.G.A. § 10-1-971(d) requires merchants to accept exact cash payment for the pre-rounded total while pennies remain legal tender.
- O.C.G.A. § 10-1-971(e) exempts rounding-related gains or losses from state and local taxation.
- O.C.G.A. § 10-1-971(f) shields merchants from violations of other state or local laws based on actions taken to comply with the rounding rule.
- Section 2 repeals any conflicting laws.
From the bill
“If one cent, two cents, six cents, or seven cents is at the end of the resulting total, such total shall be rounded down to the nearest five cents.”
“While the one-cent piece of the United States remains legal tender, any merchant shall accept exact payment in legal tender for the total amount due computed prior to any rounding.”
Status timeline
- Effective Date 2026-07-01
- Act 445
- House Date Signed by Governor (House)
- House Sent to Governor (House)
- House Agreed Senate Amend or Sub (House)
- Senate Passed/Adopted By Substitute (Senate)
- Senate Third Read (Senate)
- Senate Engrossed (Senate)
Show full history (19 actions)
- Senate Read Second Time (Senate)
- Senate Committee Favorably Reported By Substitute (Senate)
- Senate Read and Referred (Senate)
- House Passed/Adopted By Substitute (House)
- House Third Readers (House)
- House Committee Favorably Reported By Substitute (House)
- House Withdrawn, Recommitted (House)
- House Committee Favorably Reported By Substitute (House)
- House Second Readers (House)
- House First Readers (House)
- House Hopper (House)
Sponsors
- Carter Barrett (R, HD-024)
- Charles Martin (R, HD-049)
- Brent Cox (R, HD-028)
- Shaw Blackmon (R, HD-146)
- Vance Smith (R, HD-138)
- Johnny Chastain (R, HD-007)
- Chuck Hufstetler (R, SD-052)
Votes
- House voteMarch 6, 2026
167 yea, 2 nay (4 not voting, 4 absent)
- Senate voteMarch 25, 2026
32 yea, 19 nay (2 not voting, 1 absent)
- Senate voteMarch 25, 2026
50 yea, 0 nay (2 not voting, 2 absent)
- House voteApril 2, 2026
163 yea, 4 nay (6 not voting, 3 absent)
Topics
- retail sales
- cash transactions
- consumer pricing
- tax exemptions
- commerce law