S. 1525: Common Cents Act

The Common Cents Act is a piece of legislation that aims to change how cash transactions are conducted in the United States by phasing out the production and circulation of the one-cent coin, commonly known as the penny. Here’s a breakdown of what the bill entails:

Elimination of the One-Cent Coin

Starting no later than one year after the bill is enacted, the U.S. Treasury Secretary will stop minting and issuing one-cent coins for general circulation. However, there will still be some production for numismatic purposes, meaning pennies may still be made for collectors. The sale of these collector's coins must cover the costs associated with their production. It's important to note that existing pennies will remain legal tender, meaning they can still be used to settle debts.

Rounding Cash Transactions

Under this bill, cash transactions will be required to round amounts to the nearest five cents. Here’s how the rounding will work:

• If the transaction ends in 1 cent, 2 cents, 6 cents, or 7 cents, the amount will be rounded down to the nearest multiple of five cents.
• If the transaction ends in 3 cents, 4 cents, 8 cents, or 9 cents, the amount will be rounded up to the nearest multiple of five cents.

Exceptions to this rounding rule will apply in cases where the total amount due is 1 cent or 2 cents; in these cases, the amount must always be rounded up to 5 cents. Rounding will not apply to payments made via checks, credit cards, or other forms of electronic payments.

Effective Date

The provisions for rounding cash transactions will come into effect one year after the bill is signed into law.

Relevant Companies

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