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How does that help? A dollar item with a 8.5% sales tax would then be $1.10, which you still can't pay for with $1 plus a quarter in cash.
You missed the point. Don't think in terms of "cents", but fractions of a dollar. You have three coins: 1/10 dollar, 1/2 dollar, and 1 dollar.
A POS that rounds to one decimal point, using a 6% sales tax, like Michigan has, would show on the POS as $1.1, so you pay with a "golden" Trump dollar, and a Saint Reagan dime. A dollar item with a 2% tax will come out as $1.0, just as, right now, a 10 cent item with a 2% tax would ring up on a two decimal place POS as 10 cents.
Consulting the net sifter for confirmation that a POS system will round down, to show zero sales tax:
There is $0 sales tax on a 10-cent purchase in Michigan. Under official state sales tax bracket guidelines, transactions from $0.01 to $0.10 are exempt from tax, and the first penny of tax is only collected when the purchase price reaches $0.11
Steve