What's happening
This bill requires tax collectors in New York to round cash tax payments to the nearest five cents.
Why it matters
Reduces reliance on small coins. By rounding cash tax payments to the nearest five cents, the law minimizes the need for pennies and nickels, which can streamline transactions and decrease handling costs for both taxpayers and tax collectors.
Only applies to cash payments. The rounding rule is limited to payments made with U.S. coins and currency, meaning electronic, check, or card payments will still require exact amounts, ensuring flexibility for those who prefer or require non-cash methods.
Standardizes collection practices. This amendment creates a consistent approach for all collecting officers across New York, preventing disputes or confusion about whether small-denomination coins must be accepted or provided in change during tax payments.
May slightly impact total taxes collected. Over time, rounding up or down could result in small aggregate differences in tax revenue, though these are expected to balance out across many transactions. This minor fluctuation may matter more in jurisdictions with low-volume, high-cash tax payments.
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Who cares
Property Taxpayers Paying in Cash
Individuals or businesses who pay their property taxes with physical cash or coins will care, as they’ll be able to round their payments to the nearest five cents instead of handling pennies.
Local Tax Collecting Officers
Town and municipal officials responsible for collecting property taxes will be directly affected, as they’ll need to adjust their procedures to accept rounded payments and potentially update accounting practices.
Municipal Treasuries/Finance Departments
These departments will care because rounding could have minor cumulative impacts on tax revenue and require updates to reconciliation and auditing processes.
Advocates for Simplified Transactions
Groups or individuals pushing for reduced reliance on low-denomination coins or more efficient cash transactions will be interested in this change.
Headline styles
Round Tax Payments to Nickel
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 42
No co-sponsors yet.
History
- Recommitted to rules
- Amended on third reading (t) 9541a
- Ordered to third reading cal.1408
- Committee discharged and committed to rules
- Referred to local government
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Round Taxes to Nearest Nickel
In Senate Committee · Rules · Sponsor Paula Kay
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
9541--A Cal. No. 1408
IN SENATE
March 23, 2026
Introduced by Sen. SKOUFIS -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government -committee discharged and said bill committed to the Committee on Rules -- ordered to a third reading, amended and ordered reprinted, retaining its place in the order of third reading
AN ACT to amend the real property tax law, in relation to requiring that tax amounts extended on the final assessment roll, and any interest or penalties subsequently accruing thereon, be rounded to the nearest five-cent denomination prior to inclusion on any bill or notice
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 904 of the real property tax law is amended by adding a new subdivision 5 to read as follows:
5. Notwithstanding any other provision of law, all tax amounts extended on the final assessment roll shall be rounded to the nearest five-cent denomination prior to the delivery of the warrant and the issuance of tax bills. Such rounding shall be applied uniformly to all tax amounts and shall be reflected in the warrant as delivered to the collecting officer. Any interest or penalty subsequently accruing on such rounded amount shall likewise be rounded to the nearest five-cent denomination at the time of computation, prior to inclusion on any bill or notice. No further adjustment to any tax amount shall be made by the collecting officer at the time of collection on account of such rounding.
§ 2. This act shall take effect on the first of January next succeeding the date on which it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14550-03-6
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the real property tax law, in relation to requiring that tax amounts extended on the final assessment roll, and any interest or penalties subsequently accruing thereon, be rounded to the nearest five- cent denomination prior to inclusion on any bill or notice
Purpose
Requires that tax amounts extended on the final assessment roll, and any interest or penalties subsequently accruing thereon, be rounded to the nearest five-cent denomination.
Summary of provisions
Section 1: Amends Section 904 of the real property tax law by adding a new subdivision 5 stating all tax amounts extended on the final assess- ment roll shall be rounded to the nearest five-cent denomination prior to the delivery of the warrant and the issuance of tax bills.
Section 2: Establishes the effective date.
Justification
Our municipalities are on the precipice of a crisis. With pennies no longer in production, tax offices will not be able to collect exact taxes from tax payers who pay with cash. If collectors are not able to collect exact amounts or produce change for payers, they will leave these properties in default. This could lead to a low fund balance for many municipalities, especially those with large populations of seniors who often pay taxes in cash. This bill is designed so that collectors will be able to accept tax payments up to 5 cents over, and 5 cents under the actual tax amount so that property taxes can be collected and municipalities can have the cash on hand that they need to function productively.
Prior legislative history
New Bill
Fiscal implications for state and local government
TBD
Effective date
This act shall take effect on the first of January next succeeding the date on which it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.