MarylandHB 10262026 Regular SessionHouseWALLET

Business Regulation - Rounding Cash Transactions - Authorization

Sponsored By: Pam Queen (Democratic)

Signed by Governor

Business RegulationPrivate Sector Labor and IndustryCommerce and Business -see also- ElectrComm; ForeignTr; etc.Electronic Commerce -see also- Electronic Funds TransferEmergency BillsGoods and Services -see also- Retail Sales; TermnSvc; TrfGdsHealth -see also- COVID19; EnvHlth; MedCon; etc.Internet -see also- Internet AccessLaws and Ordinances -see also- Pub Local Laws; Uniform LawsPostal ServicePrices -see also- Consumer Price IndexRetail SalesRevenue and Taxes -see also- (specific tax)Rules and RegulationsSafety -see also- Occupational SafetySalaries and Compensation -see also- Overtime; Reimb. RatesTelephonesWork, Labor, and Employment -see also- JobTrn; Leave; etc.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

Tiny cash-rounding amounts not taxed

Beginning May 12, 2026, up to 2 cents of a lawful cash-rounding adjustment is not part of the taxable price. This applies only when rounding follows the State’s five-cent cash rounding rules. This keeps buyers from paying sales tax on those pennies and tells sellers exactly what to collect.

Cash purchases rounded to nearest nickel

Beginning May 12, 2026, businesses may round cash prices or change to the nearest 5 cents. Cents of 1, 2, 6, or 7 round down; 3, 4, 8, or 9 round up. Totals under 5 cents may be rounded up to 5 cents. The rule covers in-person and cash payments by phone, mail, or internet, and does not apply with exact change. Rounding cannot change any tax or fee; state rules override local ones, and the Secretary can issue regulations.

Sponsors & Cosponsors

Sponsor

  • Pam Queen

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 291 • No: 15

House vote • 4/10/2026

Third Reading Passed

Yes: 128 • No: 2 • Other: 6

Senate vote • 4/9/2026

Third Readings Passed with Amendments

Yes: 32 • No: 11 • Other: 1

House vote • 3/12/2026

Third Reading Passed

Yes: 131 • No: 2 • Other: 3

Actions Timeline

  1. Approved by the Governor - Chapter 515

    5/12/2026
  2. Passed Enrolled

    4/10/2026House
  3. Third Reading Passed (128-2)

    4/10/2026House
  4. House Concurs Senate Amendments

    4/10/2026House
  5. Third Readings Passed with Amendments (32-11)

    4/9/2026Senate
  6. Floor Amendment {583120/1 (Senator Gile) Adopted

    4/9/2026Senate
  7. Second Reading Passed with Amendments

    4/8/2026Senate
  8. Favorable with Amendments {993929/1 Adopted

    4/8/2026Senate
  9. Favorable with Amendments Report by Finance

    4/8/2026Senate
  10. Referred Finance

    3/13/2026Senate
  11. Third Reading Passed (131-2)

    3/12/2026House
  12. Favorable Adopted Second Reading Passed

    3/11/2026House
  13. Favorable Report by Economic Matters

    3/10/2026House
  14. Hearing 2/25 at 1:00 p.m.

    2/16/2026House
  15. First Reading Economic Matters

    2/9/2026House

Bill Text

  • Enacted

    5/12/2026

  • Enrolled

    4/10/2026

  • Third Reading

    3/11/2026

  • First Reading

    2/9/2026

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