2026 SESSION

HOUSE SUBSTITUTE

26107179D

HOUSE BILL NO. 954

AMENDMENT IN THE NATURE OF A SUBSTITUTE

(Proposed by the House Committee on Finance

on ________________)

(Patron Prior to Substitute—Delegate Watts)

A BILL to amend the Code of Virginia by adding in Article 1 of Chapter 2 of Title 6.2 sections numbered 6.2-200.1 and 6.2-200.2 and by adding a section numbered 58.1-3916.03, relating to rounding procedures.

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding in Article 1 of Chapter 2 of Title 6.2 sections numbered 6.2-200.1 and 6.2-200.2 and by adding a section numbered 58.1-3916.03 as follows:

§ 6.2-200.1. Rounding procedures.

A. Any person selling goods or services in a cash transaction, entering into any transaction that results in a payment or transfer of cash between the parties to the transaction, or paying cash wages to an employee as compensation:

1. In any case in which the total transaction amount, including any taxes, ends with one, two, six, or seven as the final digit of the number of cents for the transaction, may round down such number of cents to the nearest number of cents divisible by five; and

2. In any case in which the total transaction amount, including any taxes, ends with three, four, eight, or nine as the final digit of the number of cents for the transaction, may round up such number of cents to the nearest number of cents divisible by five.

B. Notwithstanding the provisions of this section, the local governing body of a county, city, or town may provide by ordinance rounding procedures for the adjustment of bills and account balances for taxes and other charges due to the locality and paid for by a cash transaction pursuant to § 58.1-3916.03.

§ 6.2-200.2. Taxes and fees calculated before rounding.

A. Any person selling goods or services, or any public or private entity entering into any transaction that results in a payment or transfer of cash between the parties to the transaction, shall calculate and remit all taxes and fees, and other charges imposed by state taxing authorities or by the seller, based on the sales price or stated service fee prior to any cash transaction rounding.

B. Any person selling goods or services shall not be in violation of any state or municipal requirements, laws, regulations, or standards based on any action taken in compliance with this section.

C. Notwithstanding the provisions of this section, the local governing body of a county, city, or town may provide by ordinance rounding procedures for the adjustment of bills and account balances for taxes and other charges due to the locality pursuant to § 58.1-3916.03.

§ 58.1-3916.03. Counties, cities, and towns may set rounding procedures.

Notwithstanding the provisions of §§ 6.2-200.1 and 6.2-200.2, the governing body of any locality may provide by ordinance procedures for the adjustment of bills and account balances for taxes and other charges due to the locality and paid for by a cash transaction to account for the cessation of production of the penny coin by the United States Mint, including by providing for the rounding of such bills and account balances to the nearest five-cent increment and the write-down or write-off of sums due that are less than five cents.