State gives recommendations following penny discontinuance

NASHVILLE — The Tennessee Comptroller of the Treasury released guidance for local governments for handling penny transactions following the federal government's discontinuance of the currency. The comptroller's guidance outlines a list of options for local governments to consider when accepting cash payments for any government-issued charges, such as utility payments, registration fees or licensing fees, among others. Among a host of recommendations, the Comptroller recommended local governments consider rounding rates, fees and other charges to multiples of five. This could have the effect of raising or lowering all government-issued rates, fees and charges by a few cents, should local governments choose to adopt the policy. It is unclear whether local governments would round down or up when implementing the guidance. The Comptroller's Office also recommended local governments consider declining non-exact cash payments altogether. A list of implementation guidelines follows the potential payment policy changes: Consult with your attorney to ensure you are acting within your legal authority Ensure that any new policies and procedures are reasonable as applied to your local community Refrain from adopting policies and procedures that provide a benefit to one type of payment over another Apply new policies and procedures uniformly Clearly communicate any new policies and procedures to the local community through appropriate channels Train all staff as necessary Ensure all policies and procedures comply with government accounting standards and that accounting systems can appropriately address the new policies and procedures. The guidance is not legally-binding and serves only as recommendations for local governments. "This guidance is intended to help local governments navigate a practical challenge while maintaining fairness, transparency, and compliance with the law," said Tennessee Comptroller Jason Mumpower. "Each community is different, and local leaders should adopt policies that make sense for their residents while staying within their legal authority." Production of the penny was halted in late 2025 amid rising costs of the materials used to create the coin — namely, Zinc, which makes up 97.5% of the total composition of a penny. In 2024, a single penny cost $3.69 to make, resulting in an annual net loss of $85 million for the U.S. Department of the Treasury. The sole manufacturer of the zinc-based component of the penny, Jarden Zinc Products, is located in Greeneville. The company paid lobbyist Mark Weller over $350,000 in 2025 to swing Congress away from discontinuing the currency, to no avail. Jarden Zinc Products, which has been renamed to Artazn, did not respond to Six Rivers Media's requests for comment on the story.