Government operations
Local agency: payment: rounding amount
Local governments may round cash-involved payments and refunds to the nearest nickel after opting in.
The law lets local agencies continue processing cash transactions amid penny shortages. Each agency must publicly opt in through a majority-approved resolution.
What the law does
- Authorizes an opting-in local agency to round payments made wholly or partly in cash to the nearest $0.05.
- Authorizes the same rounding for refunds or other amounts a local agency tenders wholly or partly in cash.
- Covers taxes, fees, charges, licenses, permits, public services, trust deposits, and specified other payments.
- Takes effect immediately.
Who it affects
- Cities, counties, special districts, and other local agencies that adopt an opt-in resolution.
- People and businesses paying local-government obligations partly or entirely with cash.
- People receiving cash refunds or other cash payments from an opting-in local agency.
Context
The Legislature identified an unprecedented penny shortage as creating immediate challenges for local tax collection and public-facing offices.