2. Nickel rounding; authorized
(a) Definitions. As used in this section:
(1) “Cash” means coins or paper currency of the United States offered in physical form.
(2) “Cash transaction” means a sale of goods or services where payment is made entirely or partially in cash.
(3) “Rounding” means adjusting the final total amount due, after taxes and fees, to the nearest five-cent increment.
(b) Rounding authorization.
(1) A person engaged in a cash transaction may round the final amount due to the nearest $0.05 as follows:
(A) If the final digit of the amount due is $0.01, $0.02, $0.06, or $0.07, rounded down to the nearest amount divisible by five.
(B) If the final digit of the amount due is $0.03, $0.04, $0.08, or $0.09, rounded up to the nearest amount divisible by five.
(2) If a person rounds a cash transaction under this section, any cash refund of the amount paid shall be issued to the purchaser in the exact amount initially paid for the goods or services.
(c) Exclusions. This section shall not apply to:
(1) electronic and other noncash payments;
(2) payment of wages as that term is defined in 21 V.S.A. § 341;
(3) rebates or cash disbursements; and
(4) transactions governed by federal law that prohibits rounding.
(d) Application. Notwithstanding any law to the contrary, rounding under this section shall not constitute an unlawful price increase, surcharge, unfair or deceptive act or practice in commerce, or discrimination.
(e) Notice requirements.
(1) On or before July 1, 2026, the Commissioner of Liquor and Lottery shall prepare and provide individuals and businesses with a model notice pursuant to this section that shall also include a reference to the Vermont Consumer Assistance Program.
(2) A person rounding transactions under this section shall post the model notice developed pursuant to subdivision (1) of this subsection in a clear and conspicuous manner at the point of sale or at the entrance to the business.
(3) The Secretary of Agriculture, Food and Markets may issue a penalty for the failure to provide the notice required under this subsection in accordance with 6 V.S.A. § 687.
(f) Taxes and fees. All taxes and fees shall be calculated and remitted based on the prerounding amount.
Added 2025, No. 128 (Adj. Sess.), § 13b, eff. June 8, 2026.
