- Indiana’s S.B. 243 (signed 3/5/26) introduces new rounding procedures for cash transactions for retailers due to a federal penny production halt, generally requiring rounding on the total price including tax and allowing retailers to round up or down to the nearest nickel.
- The Indiana Department of Revenue clarifies that any gain or loss from this rounding is applied to the retailer’s income, but retailers must still remit the full amount of underlying taxes due to the State.
- An example illustrates that if a total including tax is 6.42,aretailercanroundto6.45 or $6.40 in cash transactions, with the corresponding gain or loss affecting their income, while the 42 cents in tax is fully remitted to the State.
Source Deloitte
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