The United States is experiencing a penny shortage because the U.S. Mint stopped producing new pennies. As a result, Contract Liquor Agencies selling spirituous liquor, and Permit Holders selling beer and wine products, have asked the Division of Liquor Control (Division) for guidance on rounding prices to the next-nearest multiple of five.

FOR CONTRACT LIQUOR AGENCIES SELLING SPIRITUOUS LIQUOR:

Contract Liquor Agencies selling spirituous liquor are contractually prohibited from rounding UP the price of spirituous liquor. If an Agency chooses to round DOWN, they should be aware that the Division will still sweep the exact amount that should have been collected for the product and any applicable taxes.

If a Contract Liquor Agency chooses to round DOWN for spirituous liquor sales, the Division provides the following guidance:

• Rounding must be clearly communicated to customers via a posting at the point-of-sale explaining that rounding is occurring, why, and how it is calculated.
• Rounding should only be done on cash transactions.
• Taxes should be calculated prior to rounding.
• Agencies that choose to round MUST round down to the nearest multiple of five.

Again, Contract Liquor Agencies are PROHIBITED from rounding UP on spirituous liquor sales.

FOR PERMIT HOLDERS SELLING BEER OR WINE PRODUCTS:

• The Division provides the following guidance:
• Rounding should only be done on cash transactions.
• Taxes should be calculated prior to rounding.
• Nothing in Ohio liquor law or rule prohibits a Permit Holder from rounding UP the sales total of beer, wine, or low-proof mixed beverage products.
• Rounding DOWN is allowed provided the Permit Holder doesn’t sell below the required Minimum Mark Up for beer or wine products sold for off-premises consumption.
• Low-proof mixed beverages do not have a Minimum Mark Up.
• No Permit Holder should offer any alcoholic beverage for sale at a price less than what they paid for it.
• Rounding must be clearly communicated to customers via a posting at the point-of-sale explaining that rounding is occurring, why, and how it is calculated.
• Permit Holders who choose to round may want to follow the method below to round to the nearest multiple of five:
  • If the total (including taxes) ends in a 1, 2, 6, or 7 – round down to the nearest multiple of five
  • If the total (including taxes) ends in a 3, 4, 8, or 9 – round up to the nearest multiple of five

The Division notes that nothing in Ohio liquor law or rule prohibits a Permit Holder from rounding down the cost of non-alcoholic products. Finally, if a Permit Holder chooses to round for cash transactions, the Division recommends that they coordinate with their point-of-sale system representatives to ensure consistent and accurate rounding.

If you have questions, please contact the LESC for support.