What the End of the Penny Means for Texas Self-Storage Operators

Changes in everyday currency do not happen often, but the end of penny production is one that Texas self-storage operators should have on their radar. While pennies remain legal tender, their limited availability has prompted new guidance from the Texas Comptroller of Public Accounts that affects how cash payments and sales tax are handled.

Why This Matters to Storage Operators

For most self-storage businesses, cash transactions represent a small but important part of daily operations. When exact change is unavailable, uncertainty around rounding and tax collection can create confusion at the counter and potential compliance concerns. The comptroller’s guidance is designed to provide clarity and consistency statewide.

Comptroller Guidance on Cash Payments

According to STAR Accession No. 202512001M, the Texas Comptroller will continue to accept pennies as long as they remain legal tender. However, when pennies are not available, the agency may round a cash payment down to the nearest nickel and accept that amount as full payment. For example, if a taxpayer owes $90.04 in rent and wants to pay in cash (and pennies are unavailable), a payment of $90 satisfies the obligation.

Sales Tax and Rounding Rules

Sales tax must always be calculated on the exact sales price before any rounding occurs. If a tenant pays in cash and exact change cannot be made, operators may round the total amount collected to the nearest nickel. Minor rounding differences within a nickel generally do not require an adjustment to reported tax. It is important to note that rounding should be applied consistently and only when necessary. Rounding beyond the nearest nickel may be treated as a change to the sales price and could affect tax liability.

Electronic Payments Are Not Affected

Payments made by credit card, electronic transfer or check are not affected by penny shortages. These transactions must still be processed to the exact cent, with no rounding.

What TSSA Members Should Do

Operators should their cash-handling procedures, train onsite staff on appropriate rounding practices and ensure point-of-sale systems continue to calculate sales tax accurately. As always, consistency and documentation are key to maintaining compliance. If you have questions about how this guidance applies to your operation, TSSA encourages you to consult with your legal or tax adviser or reach out to the Texas Comptroller’s office for clarification.

Please Note: This summary was generated with the assistance of an AI language model.

Original Source: Texas Comptroller of Public Accounts STAR System. Click here to read the full memo for further guidance.

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