Fairfax County leaders are about to take steps to address the likelihood of an increasing penny shortage in the nation’s future.
At its meeting today, the Fairfax County Board of Supervisors authorized a public hearing on Tuesday, July 14 to consider revisions to how change is provided to those paying by cash for local government services.
If the amended ordinance is adopted, cash transactions could be rounded up or down to the nearest five cents.
The Virginia General Assembly this year gave localities the power to enact temporary ordinances to address cash payments for taxes, programs and other services. The legislation, patroned by Del. Vivian Watts (D-14), is designed as a stopgap, and will run through July 1, 2027 — at which point state lawmakers likely will have crafted more permanent rules for local governments to follow.
As part of the state legislation, the Virginia Department of Taxation was directed to present recommendations in advance of the 2027 General Assembly session, which begins in January.
The U.S. Mint stopped the production of new pennies last fall, striking its final batch on Nov. 12. Federal officials cited costs, which have now risen to 3.69 cents per each one-cent coin produced.
According to a staff report prepared for the supervisors:
“The county accepts cash transactions at virtually all collection locations where it is feasible, including community centers, for taxes, fees, and the sale of goods and services. There have been recent instances where the supply of pennies has not been available at locations, resulting in citizens being given incorrect change purposefully.”
“These differences will inevitably increase in frequency as the purchasable supply of pennies shrinks. This creates a systemic issue for departments and agencies in terms of reconciliation, revenues and equitable treatment.”
Board members voted as part of their administrative agenda to set the public hearing for July 14 at 4 p.m. It was adopted without comment.
Despite production having stopped, pennies are unlikely to disappear for quite some time. The typical lifespan of U.S. coinage is 30 years, according to federal officials, and some coins from the 1960s or even earlier have been known to pop up when receiving change.
In fiscal year 2024, the U.S. Mint produced and shipped approximately 3.2 billion pennies, or 57% of all coinage manufactured, according to the Department of the Treasury.
Photo via Sebastian Enriquez/Unsplash
