Overview:
Agencies such as Memphis, Light, Gas & Water could stop taking non-exact cash payments.
Small changes could come to small change in Tennessee as the discontinuation of the penny could see local governments and utilities rounding bills up or asking for exact change.
The federal government stopped making pennies last last year. The U.S. Department of the Treasury said the cost to make a penny rose over the last 10 years from $0.1.3 cents to $0.03.69 cents. The Treasury projected annual savings of $56 million if it stopped making pennies.
However, the remaining 114 billion pennies that remain in circulation will remain legal tender. How long those remain in circulation is based on consumer behavior, said the Treasury.
New guidance issued by Jason Mumpower, Comptroller of the Tennessee Treasury, Tuesday, said governments and utilities, such as Memphis Light, Gas & Water, could change how they accept pennies in the future. The comptroller said agencies should consider changes including:
• Require or encourage customers to provide exact change when making cash payments
• Offer alternative payment methods including debit cards, credit cards, electronic checks, or online payment portals
• Establish protocols for crediting a customer’s account when a customer is paying non-exact cash for recurring payments
• Decline to accept non-exact cash payments
• Adjust rates, fees, and charges within the local government’s legal authority to multiples of $0.05 or $0.10.
The comptroller said agencies should ensure any changes made are reasonable. They also should not favor one type of payment over another.