(INDIANA) - A new Indiana law allows retailers to round cash transactions as the federal government phases out the penny.
The law provides guidance for businesses dealing with a shortage of pennies.
Under the measure, rounding applies only to cash transactions and must be based on the total purchase price including sales tax.
Retailers can choose to round the final price either up or down to the nearest nickel.
Any difference from rounding is counted as income or loss for the retailer, while the full sales tax amount must still be paid to the state.
For example, if a purchase totals $6.42 including tax, the retailer may round the price to either $6.40 or $6.45 for a cash payment.
The new law took effect immediately after Governor Mike Braun signed it.