North Carolina Issues Tax Guidance for Cash Rounding After Penny Production Ends

• North Carolina retailers are rounding cash transactions due to a penny shortage after the U.S. Mint stopped penny production.
• Two rounding methods are used: symmetrical rounding (up or down to the nearest five cents) and rounding down to the nearest five cents.
• Sales and use tax must be calculated before rounding; rounding does not affect the tax due or the reported sales price/gross receipts.
• The guidance applies only to cash transactions and does not affect non-cash payments or exact change.
• Retailers must keep records of rounding practices and may update point-of-sale systems to document these transactions.

Source: salestaxinstitute.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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