MarylandSB 08932026 Regular SessionSenateWALLET

Business Regulation - Rounding Cash Transactions - Authorization

Sponsored By: Dawn Gile (Democratic)

Signed by Governor

Business RegulationPrivate Sector Labor and IndustryCommerce and Business -see also- ElectrComm; ForeignTr; etc.Electronic Commerce -see also- Electronic Funds TransferEmergency BillsEquipment -see also- Charging; Med. Equip.; MV Equip; etc.Goods and Services -see also- Retail Sales; TermnSvc; TrfGdsInternet -see also- Internet AccessLaws and Ordinances -see also- Pub Local Laws; Uniform LawsPostal ServicePrices -see also- Consumer Price IndexRetail SalesRules and RegulationsSalaries and Compensation -see also- Overtime; Reimb. RatesSales and Use TaxTelephonesWork, Labor, and Employment -see also- JobTrn; Leave; etc.

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Bill Overview

Analyzed Economic Effects

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

No sales tax on rounding cents

Beginning May 12, 2026, up to $0.02 caused only by the cash‑rounding rule is not part of the taxable price. Merchants do not charge sales tax on that amount and do not remit it. This applies only when rounding under the law is used.

State sets one rounding standard

Beginning May 12, 2026, Maryland’s rounding law overrides any local rule that conflicts with it. The Secretary may issue regulations to carry it out. This creates one statewide standard for cash rounding.

New rounding rules for cash sales

Beginning May 12, 2026, Maryland lets merchants round totals when you pay with cash. This applies to in‑person cash sales and to phone, mail, or online orders paid in cash. If the cents end in 1, 2, 6, or 7, the total rounds down to the nearest $0.05. If they end in 3, 4, 8, or 9, the total rounds up. The merchant can instead round the change due using the same rule. If the cash portion is under $0.05, it may be rounded up to $0.05. Rounding never changes how taxes or fees are calculated and does not apply when you pay exact change.

Sponsors & Cosponsors

Sponsor

  • Dawn Gile

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 197 • No: 32

House vote • 4/13/2026

Third Reading Passed

Yes: 124 • No: 12 • Other: 3

Senate vote • 4/13/2026

Third Reading Passed

Yes: 36 • No: 11

Senate vote • 3/18/2026

Third Reading Passed

Yes: 37 • No: 9

Actions Timeline

  1. Approved by the Governor - Chapter 516

    5/12/2026
  2. Passed Enrolled

    4/13/2026Senate
  3. Third Reading Passed (36-11)

    4/13/2026Senate
  4. Senate Concurs House Amendments

    4/13/2026Senate
  5. Third Reading Passed (124-12)

    4/13/2026House
  6. Second Reading Passed with Amendments

    4/9/2026House
  7. Favorable with Amendments {283229/1 Adopted

    4/9/2026House
  8. Favorable with Amendments Report by Economic Matters

    4/9/2026House
  9. Hearing 4/01 at 1:00 p.m.

    3/24/2026House
  10. Referred Economic Matters

    3/18/2026House
  11. Third Reading Passed (37-9)

    3/18/2026Senate
  12. Second Reading Passed with Amendments

    3/12/2026Senate
  13. Floor Amendment {213026/1 (Senator Hershey) Adopted

    3/12/2026Senate
  14. Floor Amendment {983326/1 (Senator Hershey) Withdrawn

    3/12/2026Senate
  15. Motion Laid Over (Senator Hershey) Adopted

    3/11/2026Senate
  16. Floor Amendment {983326/1 (Senator Hershey)

    3/11/2026Senate
  17. Favorable with Amendments {373726/1 Adopted

    3/11/2026Senate
  18. Motion Special Order until 3/11 (Senator Hershey) Adopted

    3/10/2026Senate
  19. Favorable with Amendments {373726/1

    3/10/2026Senate
  20. Favorable with Amendments Report by Finance

    3/9/2026Senate
  21. Hearing 2/27 at 1:00 p.m.

    2/12/2026Senate
  22. First Reading Finance

    2/6/2026Senate

Bill Text

  • Enacted

    5/12/2026

  • Enrolled

    4/13/2026

  • Third Reading

    3/12/2026

  • First Reading

    2/6/2026

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