HB1112: HB1112 Commerce and trade; rounding of total price of sale of goods or services when using legal tender; provide

Right now Georgia law does not specifically address rounding of cash transaction totals to avoid using pennies. This bill adds a new article to Georgia's trade practices law (O.C.G.A. Title 10, Chapter 1) that lets merchants round the total price of a cash sale, including tax, to the nearest five cents. 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 one or two cents round up to five cents. The rounding only applies to cash purchases, not to card, check, electronic payment, or mixed-tender transactions unless cash change is given. Merchants must still accept exact cash payment if a customer wants to pay the precise amount before rounding, as long as pennies remain legal tender. Rounding gains or losses are exempt from state and local taxes, and merchants following the law are shielded from penalties under other state or local rules for actions taken to comply.

• Allows in-person merchants to round the total price of a cash sale, including tax, to the nearest five cents using a specific rounding formula based on the final digit.
• Requires cash totals of one or two cents to round up to five cents rather than down.
• Limits the rounding rule to cash transactions, excluding card, check, electronic payment, or mixed-tender purchases unless cash change is disbursed.
• Requires merchants to still accept exact cash payment for the pre-rounded total if a customer insists, as long as pennies remain legal tender.
• Exempts any gains or losses from rounding from state and local taxes.
• Shields merchants from being penalized under other state, county, or municipal rules for rounding in compliance with this law.

In-person retail merchants and other businesses that accept cash payments in Georgia, and their customers who pay with coins and currency. It also touches state and local tax authorities, since rounding gains or losses are made tax-exempt.

As pennies become less practical to produce and use, this gives Georgia merchants a clear legal way to round cash totals up or down instead of tracking exact pennies, while guaranteeing customers can still pay exact change and protecting merchants from conflicting local penalties.

• Section 1 adds new Article 38 to Chapter 1 of Title 10, defining 'legal tender' as U.S. coins and currency and 'merchant' as anyone making in-person, face-to-face sales.
• O.C.G.A. § 10-1-971(a) sets the rounding formula: totals ending in 1,2,6, or 7 cents round down to the nearest five cents; totals ending in 3,4,8, or 9 cents round up.
• O.C.G.A. § 10-1-971(b) limits the rule to cash transactions and requires totals of one or two cents to round up to five cents.
• O.C.G.A. § 10-1-971(d) requires merchants to accept exact cash payment of the pre-rounded total if requested, while pennies remain legal tender.
• O.C.G.A. § 10-1-971(e) exempts rounding-related gains or losses from state and local taxes.
• O.C.G.A. § 10-1-971(f) protects merchants from violating other state or local requirements based on actions taken to comply with this rounding law.
• Section 2 repeals any conflicting laws.

1. 2026-05-11Effective Date 2026-07-01
2. 2026-05-11Act 445
3. 2026-05-11House Date Signed by Governor (House)
4. 2026-04-10House Sent to Governor (House)
5. 2026-04-02House Agreed Senate Amend or Sub (House)
6. 2026-03-25Senate Passed/Adopted By Substitute (Senate)
7. 2026-03-25Senate Third Read (Senate)
8. 2026-03-25Senate Engrossed (Senate)

• Carter Barrett (R, HD-024)Primary sponsor
• 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)

1. PassedHouse voteMarch 6, 2026

   167 yea, 2 nay (4 not voting, 4 absent)

   Passage: House Vote #657

2. PassedSenate voteMarch 25, 2026

   32 yea, 19 nay (2 not voting, 1 absent)

   Motion To Engross: Hb 328, Hb 369, Hb 519, Hb 1112: Senate Vote #800

3. PassedSenate voteMarch 25, 2026

   50 yea, 0 nay (2 not voting, 2 absent)

   Passage By Substitute: Senate Vote #807

4. PassedHouse voteApril 2, 2026

   163 yea, 4 nay (6 not voting, 3 absent)

   Agree To Senate Substitute: House Vote #833

• cash payments
• retail rules
• sales tax
• consumer transactions
• small business regulation