Pennies are disappearing from cash registers as the nation copes with a growing penny shortage. The U.S. Mint halted penny production in November, citing the rising cost of making the coin, and retailers across Illinois are feeling the effects.
Gift shops and small businesses have started rounding prices to the nearest nickel, with most rounding in the customer’s favor. But the lack of clear guidance from state or federal officials has left retailers frustrated and uncertain about the rules. “Every penny matters,” said Rob Karr, president of the Illinois Retail Merchants Association. “The absence of clear guidance at the moment is difficult.”
Some business owners say dwindling penny supplies force them to round change, while others have made prices tax-inclusive to avoid legal complications.
Illinois lawmakers have not made the issue a priority, citing billions of pennies still in circulation and the rise of electronic payments. Sen. Dave Syverson (R-Cherry Valley) said he expects any official guidance to come no sooner than 2027.
Retailers want clarity from both state and federal agencies to avoid confusion and legal exposure. “States make sales tax decisions. So it’s a shared responsibility,” Karr said.
Most experts agree the penny’s disappearance won’t drive prices up. “The value is so small that it’s not going to affect daily life much,” said Shihan Xie, a University of Illinois monetary economist.