UNITED STATES – The penny is not gone, but it is already becoming harder to find. 

As the federal government ends production of the one-cent coin, some Sullivan County businesses are beginning to round cash transactions to the nearest nickel, a small change at the register that reflects a broader shift in how Americans handle cash. 

At Pecks Market in Callicoon, that change has already begun. 

Will Hatton, store manager at Pecks Market in Callicoon, said the store began rounding cash transactions in mid-April after having trouble obtaining pennies from its bank. If the total on the receipt ends in 1,2,6 or 7, the amount due will be rounded down, while receipts ending in 3,4,8 or 9 will result in the amount due being rounded up. For example, a purchase of $20.37 will end up costing the customer $20.35, while a purchase costing $13.34 would round up to $13.35. 

The policy applies to cash purchases when exact change cannot be made. Customers who have pennies can still pay with exact change, Hatton said, and signs explaining the policy are posted at the store’s registers. 

Hatton said, “We’ve been having trouble getting pennies,” for about a month before implementing the rounding policy. He said the bank stopped providing pennies around the end of March. 

The local adjustment comes as penny production winds down nationwide. According to the U.S. Treasury Department, the cost of producing a penny has risen to 3.69 cents per coin. The U.S. Mint projects that ending penny production will save about $56 million annually in reduced material costs. Existing pennies remain legal tender and may continue circulating, but no new pennies are being made. 

The change does not mean customers are automatically paying more. Some cash totals are rounded up, while others are rounded down. Over time, the differences are expected to balance out. 

The issue has also reached Albany. Assemblymember Paula Kay, who represents the 100th Assembly District, sponsored legislation that would require tax-collecting officers to accept cash tax payments, including any interest due, rounded to the nearest five-cent denomination. According to Kay’s office, current state law prohibits tax collectors from collecting taxes in cash if they cannot make exact change. 

“This bill is a win for both municipalities and taxpayers,” Kay said in a statement. “While it is obviously ideal to make exact change, the phaseout of pennies will soon make that impossible.” 

State lawmakers have also introduced broader legislation that would standardize how merchants round cash purchases. Sen. James Skoufis introduced the “New Yorkers for Common Cents Act,” which would require cash purchases to be rounded to the nearest five-cent denomination.