SB 1108 Arizona Senate · 57th Legislature - Second Regular Session

cash transactions; mandatory rounding method

SB 1108 requires businesses in Arizona to round cash transaction totals to the nearest five cents when one-cent coins are unavailable or not used at checkout. This applies only to the final total after taxes and fees, not to individual items or non-cash payments like credit cards. Businesses must post a visible notice about the rounding rule and cannot use any method other than rounding down for totals ending in 1-2 or 6-7 cents, and up for 3-4 or 8-9 cents. The Arizona Department of Agriculture enforces the rule through warnings, orders, and civil penalties. The law explicitly states it does not override federal coinage laws or require acceptance of specific currency denominations.
Bill status introduced 1 of 4 stages cleared
Introduction
Jan 2026
Committee Review
Floor Vote
Governor
Introduced Jan 9, 2026 Last action Mar 2, 2026
Maddy AI version diff · 1 comparison

What changed between versions

Introduced Version Senate Engrossed Version · 5 edits
MODERATE
The bill was reclassified from an introduced version to a Senate engrossed version, indicating it has passed initial review. The most significant substantive change is the removal of exemptions for individual item sales, meaning Swedish rounding now applies to every cash transaction regardless of size. Additionally, the bill added new requirements for sellers to calculate taxes based on pre-rounded prices and clarified that compliance with this rounding method protects businesses from violating other laws.
Scope change
The scope of the mandatory rounding rule was expanded to include individual item sales, which were previously exempt from the requirement.
ELIGIBILITY

Exemptions for individual item sales and non-cash payment methods were removed, making Swedish rounding mandatory for all cash transactions.

REQUIREMENT

Sellers must now calculate and remit all taxes and fees based on the sales price before rounding occurs.

New provisions were added to state that compliance with this section shields sellers from violating other state or municipal requirements.

TIMELINE

The act was designated as an emergency measure, making it operative immediately.

TECHNICAL

The bill title was updated from 'Introduced Version' to 'Senate Engrossed Version' and formatting was adjusted.

Floor votes

How they voted

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Full legislative history

Actions timeline

Total actions
5
Key actions
2
Committee
0
Amendments
2
Mar 2, 2026
Upper · Passed
DPA
upper
Feb 11, 2026
Upper · Passed
DPA
upper
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of John Kavanagh
John Kavanagh
RRepublican
AZ
3