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City begins to phase out the penny

Posted on Monday March 04, 2013

Kitchener – As of Monday, March 4, pennies will be accepted during transactions at the city, but no longer given in change. Customers can continue to use pennies for cash transactions indefinitely, which means payment can be made to the nearest cent. Cash transactions where pennies are not being used will be rounded to the nearest five-cent increment, as per the Government of Canada guidelines. Over time this will reduce as pennies are gradually withdrawn from circulation.

Rounding is as follows:

Amounts ending in 1 cent and 2 cents are rounded down to the nearest 10 cents.Amounts ending in 3 cents and 4 cents are rounded up to the nearest 5 cents.Amounts ending in 6 cents and 7 cents are rounded down to the nearest 5 cents.Amounts ending in 8 cents and 9 cents are rounded up to the nearest 10 cents.Amounts ending in 0 cent and 5 cents remain unchanged.

Note: Non-cash transactions such as payment by cheque, credit and debit cards will not be rounded and will still be paid to the nearest cent.

Penny-rounding will not affect the calculation of tax and utility rates, or billing. HST will be calculated on the pre-tax price (where HST is applicable), and not on the rounded price.

Information signage on rounding the penny will be visible at all locations where cash transactions take place as well as on the city’s website and in Your Kitchener.

View the Government of Canada notice: http://www.fin.gc.ca/1cent/index-eng.asp

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