Here`s what the law says: The Currency Act of 1965, specifically 31 U.S.C. 5103, states: “The coins and coins of the United States (including Federal Reserve notes and circulation notes of Federal Reserve banks and national banks) are legal tender for all debts, public charges, taxes and duties. Foreign gold or silver coins are not legal tender for debts. In 2012, a Winston-Salem resident wearing a T-shirt that read “Tax is theft” dragged an 11,722-cent box to the Forsyth County Tax Office to pay his auto tax bill. In 2015, a UNC-Charlotte student paid his parking fines with more than 10,000 cents to protest the fact that most of the university`s parking fee revenue goes to public school districts. The city of Columbia, North Carolina, reports that a taxpayer who owns a coin-operated laundromat regularly carries huge laundry bags full of neighborhoods to pay his taxes and water bills. 31 U.S.C. 5103, entitled “Legal tender,” states: “The coins and currencies of the United States [including Federal Reserve notes and circulation notes of Federal Reserve banks and national banks] are legal tender for all debts, public rights, taxes, and duties.” This law means that all of the above U.S. funds constitute a valid and legal offer to pay the debt when offered to a creditor. According to a report Friday in The Deseret News, Jason West went to Vernal`s Basin clinic to dispute a $25 medical bill. While the clinic wasn`t convinced, West came up with a plan B that included nearly 14 pounds of pennies. Apparently, the argument was not going in his direction. According to Vernal police, West asked if the clinic would accept money, then threw the 2,500 cents on the counter and demanded they count it.
“The pennies were scattered around the counter and the floor,” the deputy police chief said. Although federal law states that coins are legal tender, it does not require anyone to accept them. If a company does not want to accept pennies or $100 bills, they have the right to refuse them. So why is the government keeping the penny? The answer is simple: sales tax. Sales tax increases the price of an item to an irregular amount, so pennies must be given in currency. Retailers need money to give back to customers, banks need money to give to retailers, and the Fed needs pennies to give back to the bank. Everything so you can drop one on the sidewalk on the way out. Origins: This is one of the misinformation I wish websites like this had been there when I was a kid so I could report it to my dad and tell him to shut up. I don`t remember how many times he solemnly sang that “penmes are not legal tender in quantities greater than 100” and so merchants It may come as a surprise, but according to the Royal Mint, 1p and 2p coins are only legal tender if you pay for something that costs 20 pence or less: Once you have accumulated 21 or more 1p coins, your coins infringe the Coinage Act 1971 when used in a single transaction. Even if you buy penny candy. U.S. currency includes cash, credit cards, and checks or money orders.
The federal Coinage Act of 1965 states that coins and cash are “legal tender for all debts, public duties, taxes, and duties.” However, the federal government will not tell you what you will or will not accept as payment. Your private company is not required to accept all types of legal tender. He can decide what type of payment he wants. Pennies are usually found between the sofa cushions and in the “Leave a Penny, Take a Penny” tray in the liquor store. You cannot use them in parking meters or vending machines. So what`s the point of having them? As a business owner, you may have thought that you can refuse to accept pennies from customers. You can spend up to 5 pence or 10 pence on 5p or 10p coins, or up to £10 each on 50p and 20p coins. Book coins are legal tender for any amount and offer the possibility of a challenge while remaining on the right side of the law. In response to the decline in the value of the copper coin, some stores stopped accepting it as a means of payment. In 2007, a New York man was so angry when a Chinese restaurant refused to pay for his dinner with 10 cents (along with other cash) that he persuaded a state senator to draft a bill requiring pennies to be accepted anywhere, anytime. (The law was not passed.) And in 2009, a number of merchants in Concord, Massachusetts, banded together to protest Pennies on Lincoln`s 200th birthday.
By being polite to your customer and then explaining that you can`t accept the coins rolled out in their 5-gallon bucket unless they`re willing to pay the extra bank processing fees, you may be able to save both the sale and the customer experience.
Comments are closed.