Missouri Lawmakers Prepare for End of the Penny

Jefferson City, Mo. (KFMO) - Missouri lawmakers are taking steps to prepare for the possible elimination of the penny.

A bill now headed to Governor Mike Kehoe would establish statewide rounding rules for cash purchases if pennies are no longer available in circulation. The proposal follows a federal decision to stop producing the one-cent coin as part of an effort to reduce government spending.

According to the U.S. Treasury, it currently costs more than three cents to manufacture a single penny, making continued production increasingly expensive.

Under the proposed Missouri law, the rounding system would apply only to cash transactions. Electronic payments made with debit cards, credit cards, or digital payment methods would not be affected.

The legislation outlines how purchases would be rounded to the nearest five cents:

• Totals ending in 1, 2, 6, or 7 cents would round down.
• Totals ending in 3, 4, 8, or 9 cents would round up.
• Amounts already ending in 0 or 5 cents would remain unchanged.

Supporters of the proposal say the measure would provide consistency for businesses and consumers if the federal government fully phases out the penny in the future.

If signed by Governor Kehoe, Missouri would join other states considering how to handle cash transactions in a post-penny economy.