Can an Arkansas county tax collector require exact-change payments, refuse cash, or operate a fully cashless office? Should tax payments be rounded to the nearest nickel because the U.S. Mint has discontinued the penny?
Subject
Whether Arkansas county tax collectors can: (1) require real, personal, and other tax payments be made with exact change; (2) require electronic-only payment; (3) operate a cashless office; and (4) round tax payments to the nearest nickel due to the discontinuation of the penny.
Plain-English summary
The U.S. Mint announced in early 2026 that circulating penny production is being suspended. Representative Warren asked the AG how Arkansas county tax collectors can handle the practical consequences.
The first three questions get the same answer: yes, county tax collectors can require exact change, mandate electronic payment, or operate a cashless office. Neither federal nor state law (constitutional, statutory, or regulatory) requires county officials to accept cash payments. Federal legal-tender law (31 U.S.C. § 5103) provides that "United States coins and currency are legal tender for all debts, public charges, taxes, and dues," but the Department of the Treasury and federal courts have long interpreted this as defining what is legal tender, not as requiring any particular creditor to accept it. So a county can lawfully decline cash and require electronic payment. Existing pennies, the AG notes, remain legal tender even though the Mint will not produce new ones.
The AG added a practical note: if a county adopts an exact-change-or-electronic-only policy, posting clear signs and providing notice through other official channels is prudent. Taxpayers who arrive without exact change or a non-cash payment method have no legal claim, but they will be unhappy if they were not warned. The county should also consult its own legal counsel.
The fourth question (rounding to the nickel) is referred to a separate AG opinion (Op. 2025-115). The short answer there: Arkansas law does not prohibit rounding the cash portion of a transaction, and Arkansas does not require cash and credit-card transactions to be treated identically (so a cash-rounded transaction is generally permissible). The opinion does not address local ordinances that may impose stricter requirements.
What this means for you
If you are a county tax collector
You can decline cash and operate a fully electronic office if that fits your county's needs. You can require exact change. Document the policy formally (resolution by the quorum court or written internal policy) so it has clear authority. Post signs at the office, on your website, and in the property tax statements you mail out. Consider transition support: a kiosk for credit-card payments, a list of approved electronic payment methods, and a defined cutoff date so taxpayers can plan. Cashless office is lawful but creates equity issues (people without bank accounts or smartphones) that you should address through accommodation rather than ignore.
If you are a county judge or quorum court member
If you want a uniform county-wide policy on cash acceptance, the quorum court is the right venue. Pass an ordinance specifying the policy. Coordinate with the tax collector, treasurer, county clerk, and any other office that collects payments so the rules are consistent. Local ordinances can add to the state-law floor (more transparency about the policy, accommodations for unbanked taxpayers) but should not contradict it.
If you are a taxpayer
If your county tax collector announces a no-cash or exact-change-only policy, you cannot legally compel them to accept cash. Plan accordingly: get a debit card, set up an online account, or pay early with a personal check. If the county adopts the policy without notice, you may have an equitable argument for a brief grace period, but the AG opinion is clear that the policy itself is lawful.
If you are a state legislator
If you want to require county tax collectors to continue accepting cash, the legislature would need to enact a statute. The current absence of any state requirement leaves the choice with each county. A statewide rule could be designed in either direction (mandating cash acceptance or expressly authorizing cashless offices) depending on policy preference. As of this opinion, neither has been enacted.
If you are a retailer dealing with penny rounding
Op. 2025-115 covers this. Arkansas does not prohibit rounding the cash portion of a transaction, and does not require cash and credit-card transactions to be treated identically. A "round to the nearest nickel for cash" policy is generally permissible. Watch for local ordinances that may impose stricter rules.
Common questions
Q: Doesn't 31 U.S.C. § 5103 require people to accept cash?
A: No. The statute defines legal tender ("legal tender for all debts, public charges, taxes, and dues") but federal Treasury and judicial interpretation is consistent that this defines what is legal tender, not that it compels any creditor to accept it. Private businesses can refuse cash. Government creditors can too unless a specific statute requires otherwise.
Q: Are pennies still legal tender now that the Mint stopped producing them?
A: Yes. The Mint stopping production does not demonetize existing coins. Pennies in circulation remain legal tender (31 U.S.C. § 5103).
Q: Can a county refuse a $20 bill for a $19.97 tax payment because they cannot make $0.03 change?
A: Under this opinion, yes, if the county has an exact-change policy. The taxpayer would need to provide the exact $19.97 (or use electronic payment).
Q: Can a county require all property tax payments be made online?
A: Yes. The county can decline cash, decline checks, and require electronic payment. Practical equity concerns aside (some taxpayers do not have electronic options), this is legally permitted.
Q: What about a county's existing local ordinance that requires cash acceptance?
A: This opinion does not address existing local ordinances. If your county has one, it remains in effect until repealed. The opinion only addresses what state and federal law require, not what local ordinances may impose.
Q: How does this interact with the disabled-access or unbanked-population concerns?
A: This opinion does not address those concerns. A pure cashless policy can disadvantage people who do not have bank accounts or electronic payment methods. The county should consider accommodations (kiosks, agents, alternative payment locations) even though state law does not require them.
Background and statutory framework
31 U.S.C. § 5103 defines legal tender. Federal Treasury interpretation (and consistent court decisions) treat the provision as a definition of what is legal tender, not as a requirement that any particular party accept it.
Arkansas has no statute, regulation, or constitutional provision requiring county officials to accept cash or prohibiting them from requiring exact change.
The U.S. Mint discontinued circulating penny production effective January 7, 2026 (per the Mint's official announcement). Existing pennies remain legal tender.
Op. 2025-115 (referenced in this opinion) addresses rounding practices. Key conclusions: Arkansas does not prohibit rounding the cash portion of a transaction; Arkansas does not require cash and credit-card transactions to be treated identically; penny rounding for cash transactions does not by itself violate Arkansas law.
This opinion expressly does not address local ordinances that may impose stricter requirements. Counties with existing ordinances on cash acceptance must continue to comply with those local rules.
Citations and references
Statutes: 31 U.S.C. § 5103.
Prior AG opinion: Op. 2025-115 (rounding practices).
Other: U.S. Mint, "Penny FAQs: Why is Circulating Penny Production Being Suspended?" (content last updated Jan. 7, 2026).
Source
Original opinion text
BOB R. BROOKS JR. JUSTICE BUILDING
101 WEST CAPITOL AVENUE
LITTLE ROCK, ARKANSAS 72201
Opinion No. 2025-125
January 23, 2026
The Honorable Les Warren
State Representative
Post Office Box 22900
Hot Springs, Arkansas 71903
Dear Representative Warren:
I am writing in response to your request for my opinion on county tax collector payments, given that the U.S. Mint no longer produces the penny. Specifically, you ask four questions:
1. May Tax Collectors require real, personal property, and other tax payments be made with exact change?
2. May Tax Collectors require real, personal property, and other tax payments be made only through and by electronic payment?
3. Under Arkansas law, are Tax Collectors allowed to operate a cashless office?
Brief response: To answer the first three questions together, neither federal nor state law, constitutional, statutory, or regulatory, prohibits county officials from requiring exact change or mandates that they accept cash payments.
4. Should tax payments, assessments, dues, or other payments be rounded to the nearest nickel due to the pending elimination of the penny?
Brief response: Please see Attorney General Opinion 2025-115, which addresses the laws relevant to rounding transactions.
DISCUSSION
Questions 1, 2, and 3. Although the U.S. Department of the Treasury no longer produces the penny, existing pennies remain legal tender. Neither federal nor state law, constitutional, statutory, or regulatory, requires county officials to accept cash payments. Likewise, neither federal nor state law prohibits county officials from requiring exact change.
When a county enacts a policy requiring exact change or limiting payment methods, it may be prudent for the county to take additional steps to notify taxpayers of those changes, like by posting signs or providing notice through other official channels. A county should consult with its legal counsel on such matters.
Question 4. Neither Arkansas nor federal law prohibits a retailer from rounding the cash portion of a transaction. I recently issued Attorney General Opinion 2025-115, which addresses rounding practices in light of the penny's discontinuation. In that opinion I note that while some states prohibit businesses from imposing credit card surcharges or charging cash-paying customers more than those who use non-cash payment, Arkansas does not. Additionally, Arkansas law does not prescribe a particular method for providing change during cash transactions. Because Arkansas law does not expressly require cash and credit card transactions to be treated identically, penny rounding for cash transactions likely does not, by itself, violate other Arkansas laws.
Assistant Attorney General William R. Olson prepared this opinion, which I hereby approve.
Sincerely,
TIM GRIFFIN
Attorney General