Sec. 5739.02. For the purpose of providing revenue with | 7 |
which to meet the needs of the state, for the use of the general | 8 |
revenue
fund of the state, for the purpose of securing a thorough | 9 |
and
efficient system of common schools throughout the state, for | 10 |
the purpose of affording revenues, in addition to those from | 11 |
general property taxes, permitted under constitutional | 12 |
limitations, and from other sources, for the support of local | 13 |
governmental functions, and for the purpose of reimbursing the | 14 |
state for the expense of administering this chapter, an excise
tax | 15 |
is hereby levied on each retail sale made in this state. | 16 |
(A)(1) The tax shall be collected as provided
in
section | 17 |
5739.025 of the Revised Code, provided that on and after July 1, | 18 |
2003, and on or before June 30, 2005, the rate of tax shall be six | 19 |
per cent. On and after July 1, 2005, the rate of the tax shall be | 20 |
five and one-half per cent. The tax applies and is collectible | 21 |
when the sale is made,
regardless of the time when the price is | 22 |
paid or delivered. | 23 |
(2) In the case of the lease or rental, with a fixed term of | 24 |
more than thirty days or an indefinite term with a minimum period | 25 |
of more than thirty days, of any motor vehicles designed by the | 26 |
manufacturer to carry a load of not more than one ton, watercraft, | 27 |
outboard motor, or aircraft, or of any tangible personal property, | 28 |
other than motor vehicles designed by the manufacturer to carry a | 29 |
load of more than one ton, to be used by the lessee or renter | 30 |
primarily for business purposes, the tax shall be collected by the | 31 |
vendor at the time the lease or rental is consummated and shall be | 32 |
calculated by the vendor on the basis of the total amount to be | 33 |
paid by the lessee or renter under the lease agreement. If the | 34 |
total amount of the consideration for the lease or rental includes | 35 |
amounts that are not calculated at the time the lease or rental is | 36 |
executed, the tax shall be calculated and collected by the vendor | 37 |
at the time such amounts are billed to the lessee or renter. In | 38 |
the case of an open-end lease or rental, the tax shall be | 39 |
calculated by the vendor on the basis of the total amount to be | 40 |
paid during the initial fixed term of the lease or rental, and for | 41 |
each subsequent renewal period as it comes due. As used in this | 42 |
division, "motor vehicle" has the same meaning as in section | 43 |
4501.01 of the Revised Code, and "watercraft" includes an outdrive | 44 |
unit attached to the watercraft. | 45 |
A lease with a renewal clause and a termination penalty or | 46 |
similar provision that applies if the renewal clause is not | 47 |
exercised is presumed to be a sham transaction. In such a case, | 48 |
the tax shall be calculated and paid on the basis of the entire | 49 |
length of the lease period, including any renewal periods, until | 50 |
the termination penalty or similar provision no longer applies. | 51 |
The taxpayer shall bear the burden, by a preponderance of the | 52 |
evidence, that the transaction or series of transactions is not a | 53 |
sham transaction. | 54 |
(6) Sales of motor fuel upon receipt, use,
distribution, or | 81 |
sale of which in this state a tax is imposed by
the law of this | 82 |
state, but this exemption shall not apply to the
sale of motor | 83 |
fuel on which a refund of the tax is
allowable under division (A) | 84 |
of section
5735.14 of the Revised Code; and the tax
commissioner | 85 |
may deduct
the amount of tax levied by this section
applicable to | 86 |
the price
of motor fuel when granting a
refund of motor fuel tax | 87 |
pursuant to division (A) of
section 5735.14 of
the Revised Code | 88 |
and shall cause the amount
deducted to be paid
into the general | 89 |
revenue fund of this state; | 90 |
(7) Sales of natural gas by a natural gas company, of water | 91 |
by a water-works
company, or of steam by a heating company, if in | 92 |
each case the
thing sold is delivered to consumers through pipes | 93 |
or
conduits, and all sales of communications services by a
| 94 |
telegraph company, all terms as defined in section
5727.01 of
the | 95 |
Revised Code, and sales of electricity delivered through wires; | 96 |
(8) Casual sales by a person, or auctioneer employed
directly | 97 |
by the person to conduct such sales, except as to
such
sales of | 98 |
motor vehicles, watercraft or outboard motors required to
be | 99 |
titled under section 1548.06 of the Revised Code, watercraft | 100 |
documented with the United States coast guard, snowmobiles, and | 101 |
all-purpose vehicles as defined in section 4519.01 of the Revised | 102 |
Code; | 103 |
(9)(a) Sales of services or tangible personal property, other | 104 |
than motor vehicles, mobile homes, and manufactured
homes, by | 105 |
churches, organizations exempt from taxation under
section | 106 |
501(c)(3) of the Internal Revenue
Code of 1986, or
nonprofit | 107 |
organizations operated exclusively for charitable
purposes as | 108 |
defined in division (B)(12) of this section, provided
that the | 109 |
number of days on which such tangible personal property
or | 110 |
services, other than items never subject to the tax, are sold
does | 111 |
not exceed six in any calendar year, except as otherwise provided | 112 |
in division (B)(9)(b) of this section. If the number of days
on | 113 |
which such sales are made exceeds six in any calendar year,
the | 114 |
church or organization shall be considered to be engaged in | 115 |
business and all subsequent sales by it shall be subject to the | 116 |
tax. In counting the number of days, all sales by groups within
a | 117 |
church or within an organization shall be considered to be
sales | 118 |
of that church or organization. | 119 |
(b) The limitation on the number of days on which tax-exempt | 120 |
sales may be made by a church or organization under division | 121 |
(B)(9)(a) of this section does not apply to sales made by
student | 122 |
clubs and other groups of students of a primary
or
secondary | 123 |
school, or a parent-teacher
association,
booster group, or similar | 124 |
organization that raises
money to
support or fund curricular or | 125 |
extracurricular activities
of a
primary or secondary school. | 126 |
(12) Sales of tangible personal property or services to | 136 |
churches, to organizations exempt from taxation under section | 137 |
501(c)(3) of the Internal Revenue Code of 1986, and to any other | 138 |
nonprofit organizations operated exclusively for charitable | 139 |
purposes in this state, no part of the net income of which inures | 140 |
to the benefit of any private shareholder or individual, and no | 141 |
substantial part of the activities of which consists of carrying | 142 |
on propaganda or otherwise attempting to influence legislation; | 143 |
sales to offices administering one or more homes for the aged or | 144 |
one or more hospital facilities exempt under section 140.08 of
the | 145 |
Revised Code; and sales to organizations described in
division (D) | 146 |
of section 5709.12 of the Revised Code. | 147 |
"Charitable purposes" means the relief of poverty; the | 148 |
improvement of health through the alleviation of illness,
disease, | 149 |
or injury; the operation of an organization
exclusively
for the | 150 |
provision of professional, laundry, printing, and
purchasing | 151 |
services to hospitals or charitable institutions;
the
operation of | 152 |
a home for the aged, as defined in section 5701.13
of the Revised | 153 |
Code; the operation of a radio or television
broadcasting station | 154 |
that is licensed by the federal
communications commission as a | 155 |
noncommercial educational radio or
television station; the | 156 |
operation of a nonprofit animal
adoption service or a county | 157 |
humane society; the promotion of
education by an institution of | 158 |
learning that maintains a faculty of
qualified instructors, | 159 |
teaches regular continuous courses of study, and
confers a | 160 |
recognized diploma upon completion of a specific
curriculum; the | 161 |
operation of a parent-teacher association,
booster group, or | 162 |
similar organization primarily engaged in the
promotion and | 163 |
support of the curricular or extracurricular
activities of a | 164 |
primary or secondary school; the operation of a
community or area | 165 |
center in which presentations in music,
dramatics, the arts, and | 166 |
related fields are made in order to
foster public interest and | 167 |
education therein; the production of
performances in music, | 168 |
dramatics, and the arts; or the
promotion of education by an | 169 |
organization engaged in carrying on research
in, or the | 170 |
dissemination of, scientific and technological
knowledge and | 171 |
information primarily for the public. | 172 |
(13) Building and construction materials and services sold
to | 178 |
construction contractors for incorporation into a structure or | 179 |
improvement to real property under a construction contract with | 180 |
this state or a political subdivision
of this state, or
with the | 181 |
United
States government or any of its agencies; building
and | 182 |
construction materials and services sold to construction | 183 |
contractors for incorporation into a structure or improvement to | 184 |
real property that are accepted for ownership by this
state or
any | 185 |
of its political subdivisions, or by the United States
government | 186 |
or any of its agencies at the time of completion of
the
structures | 187 |
or improvements; building and construction
materials
sold to | 188 |
construction contractors for incorporation into
a
horticulture | 189 |
structure or livestock structure for a person
engaged
in the | 190 |
business of horticulture or producing livestock;
building | 191 |
materials and services sold to a construction contractor
for | 192 |
incorporation into a house of public worship or religious | 193 |
education, or a building used exclusively for charitable purposes | 194 |
under a construction contract with an organization whose purpose | 195 |
is as described in division (B)(12) of this section; building | 196 |
materials and
services sold to a construction contractor for | 197 |
incorporation into a building
under a construction contract with | 198 |
an organization exempt from taxation under
section 501(c)(3) of | 199 |
the Internal Revenue
Code of 1986 when the building is to be used | 200 |
exclusively for the
organization's exempt purposes; building and | 201 |
construction materials sold for incorporation into the original | 202 |
construction of a sports facility under section 307.696 of the | 203 |
Revised Code; and building and construction materials and
services | 204 |
sold to a construction contractor for incorporation into
real | 205 |
property outside this state if such materials and services,
when | 206 |
sold to a construction contractor in the state in which the
real | 207 |
property is located for incorporation into real property in
that | 208 |
state, would be exempt from a tax on sales levied by that
state; | 209 |
(15) Sales to persons primarily engaged in any of the | 214 |
activities
mentioned in division (B)(42)(a) or (g) of this | 215 |
section, to persons engaged in making retail sales, or to
persons | 216 |
who purchase for sale from a manufacturer tangible
personal | 217 |
property that was produced by the manufacturer in
accordance with | 218 |
specific designs provided by the purchaser, of
packages, including | 219 |
material, labels, and parts for packages, and
of
machinery, | 220 |
equipment, and material for use primarily in
packaging
tangible | 221 |
personal property produced for sale, including
any machinery, | 222 |
equipment, and supplies used to make labels or
packages, to | 223 |
prepare packages
or products for labeling, or to
label packages or | 224 |
products, by or on the order
of the person doing
the packaging, or | 225 |
sold at retail.
"Packages"
includes bags,
baskets, cartons, | 226 |
crates, boxes, cans, bottles,
bindings,
wrappings, and other | 227 |
similar devices and containers, but does not include motor | 228 |
vehicles or bulk tanks, trailers, or similar devices attached to | 229 |
motor vehicles. "Packaging" means placing in a package. Division | 230 |
(B)(15) of this section does not apply to persons engaged in | 231 |
highway transportation for hire. | 232 |
(17) Sales to persons engaged in farming, agriculture, | 238 |
horticulture, or floriculture, of tangible personal property for | 239 |
use or consumption directly in the production by farming, | 240 |
agriculture, horticulture, or floriculture of other tangible | 241 |
personal property for use or consumption directly in the | 242 |
production of tangible personal property for sale by farming, | 243 |
agriculture, horticulture, or floriculture; or material and parts | 244 |
for incorporation into any such tangible personal property for
use | 245 |
or consumption in production; and of tangible personal
property | 246 |
for such use or consumption in the conditioning or
holding of | 247 |
products produced by and for such use, consumption, or
sale by | 248 |
persons engaged in farming, agriculture, horticulture, or | 249 |
floriculture, except where such property is incorporated into real | 250 |
property; | 251 |
(18) Sales of drugs for a human being that may be dispensed | 252 |
only pursuant to a prescription;
insulin as recognized in the | 253 |
official
United States pharmacopoeia; urine and blood testing | 254 |
materials
when used by diabetics or persons with hypoglycemia to | 255 |
test for
glucose or acetone; hypodermic syringes and needles when | 256 |
used by
diabetics for insulin injections; epoetin alfa when | 257 |
purchased for
use in
the treatment of persons with medical | 258 |
disease;
hospital
beds when purchased
by hospitals, nursing homes, | 259 |
or other medical facilities;
and medical oxygen and medical | 260 |
oxygen-dispensing
equipment when purchased by hospitals, nursing | 261 |
homes, or other medical facilities; | 262 |
(22) Sales of services provided by the state or any of its | 278 |
political subdivisions, agencies, instrumentalities,
institutions, | 279 |
or authorities, or by governmental entities of the
state or any of | 280 |
its political subdivisions, agencies,
instrumentalities, | 281 |
institutions, or authorities; | 282 |
(24) Sales to persons engaged in the preparation of eggs
for | 286 |
sale of tangible personal property used or consumed directly
in | 287 |
such preparation, including such tangible personal property
used | 288 |
for cleaning, sanitizing, preserving, grading, sorting, and | 289 |
classifying by size; packages, including material and parts for | 290 |
packages, and machinery, equipment, and material for use in | 291 |
packaging eggs for sale; and handling and transportation
equipment | 292 |
and parts therefor, except motor vehicles licensed to
operate on | 293 |
public highways, used in intraplant or interplant
transfers or | 294 |
shipment of eggs in the process of preparation for
sale, when the | 295 |
plant or plants within or between which such
transfers or | 296 |
shipments occur are operated by the same person.
"Packages" | 297 |
includes containers, cases, baskets, flats, fillers,
filler flats, | 298 |
cartons, closure materials, labels, and labeling
materials, and | 299 |
"packaging" means placing therein. | 300 |
(32) The sale, lease, repair, and maintenance of, parts
for, | 333 |
or items attached to or incorporated in, motor
vehicles
that
are | 334 |
primarily used for transporting tangible personal property | 335 |
belonging to others by
a
person engaged in highway transportation | 336 |
for hire, except for packages and packaging used for the | 337 |
transportation of tangible personal property; | 338 |
(34) Sales to a telecommunications service vendor, mobile | 344 |
telecommunications service vendor, or satellite broadcasting | 345 |
service vendor of
tangible personal property and services used | 346 |
directly and
primarily in transmitting, receiving, switching, or | 347 |
recording any
interactive, one- or two-way electromagnetic | 348 |
communications, including
voice, image, data, and information, | 349 |
through the use of any
medium, including, but not limited to, | 350 |
poles, wires, cables,
switching equipment, computers, and record | 351 |
storage devices and
media, and component parts for the tangible | 352 |
personal property.
The exemption provided in this division
shall | 353 |
be in lieu of all other exemptions under division (B)(42)(a) of | 354 |
this
section to which the vendor may otherwise be entitled, based | 355 |
upon the use of
the
thing purchased in providing the | 356 |
telecommunications, mobile telecommunications, or satellite | 357 |
broadcasting service. | 358 |
(b) Sales to direct marketing vendors of preliminary | 364 |
materials such as photographs, artwork, and typesetting that will | 365 |
be used in printing advertising material; of printed matter that | 366 |
offers free merchandise or chances to win sweepstake prizes and | 367 |
that is mailed to potential customers with advertising material | 368 |
described in division (B)(35)(a) of this section; and of
equipment | 369 |
such as telephones, computers, facsimile machines, and
similar | 370 |
tangible personal property primarily used to accept
orders for | 371 |
direct marketing retail sales. | 372 |
For purposes of division (B)(35) of this section,
"direct | 376 |
marketing" means the method of selling where consumers order | 377 |
tangible personal property by United States mail, delivery | 378 |
service, or telecommunication and the vendor delivers or ships
the | 379 |
tangible personal property sold to the consumer from a
warehouse, | 380 |
catalogue distribution center, or similar fulfillment
facility by | 381 |
means of the United States mail, delivery service, or
common | 382 |
carrier. | 383 |
(c) Items of property that are
attached to or incorporated
in | 396 |
motor racing vehicles, including
engines, chassis, and all
other | 397 |
components of the vehicles, and
all spare, replacement, and | 398 |
rebuilt parts or components of the
vehicles; except not including | 399 |
tires, consumable fluids, paint,
and accessories consisting of | 400 |
instrumentation sensors and
related items added to the vehicle to | 401 |
collect and transmit data
by means of telemetry and other forms of | 402 |
communication. | 403 |
(40) Sales of tangible personal property and services to
a | 407 |
provider of electricity used or consumed directly and primarily in | 408 |
generating, transmitting, or distributing electricity for use by | 409 |
others,
including property that is or is to be incorporated into | 410 |
and will become
a part of the consumer's production, transmission, | 411 |
or distribution
system and that retains its classification as | 412 |
tangible personal
property after incorporation; fuel or power used | 413 |
in the
production, transmission, or distribution of electricity; | 414 |
and
tangible personal property and services used in the repair and | 415 |
maintenance of the production, transmission, or distribution | 416 |
system, including only those motor vehicles as are specially | 417 |
designed and equipped for such use. The exemption provided in
this | 418 |
division shall be in lieu of all other exemptions in division | 419 |
(B)(42)(a) of this section to
which a provider
of electricity may | 420 |
otherwise be entitled based on the use of the
tangible
personal | 421 |
property or service purchased in generating,
transmitting, or | 422 |
distributing electricity. | 423 |
(a) To incorporate the thing transferred as a material or a | 430 |
part into tangible personal property to be produced for sale by | 431 |
manufacturing, assembling, processing, or refining; or to use or | 432 |
consume the thing transferred directly in producing tangible | 433 |
personal property for sale by mining, including, without | 434 |
limitation, the extraction from the earth of all substances that | 435 |
are classed geologically as minerals, production of crude oil and | 436 |
natural gas, farming, agriculture, horticulture, or floriculture, | 437 |
or directly in the rendition of a public utility service, except | 438 |
that the sales tax levied by this section shall be collected upon | 439 |
all meals, drinks, and food for human consumption sold when | 440 |
transporting persons. Persons engaged in rendering farming, | 441 |
agricultural, horticultural, or floricultural services, and | 442 |
services in the exploration for, and production of, crude oil and | 443 |
natural gas, for others are deemed engaged directly in farming, | 444 |
agriculture, horticulture, and floriculture, or exploration for, | 445 |
and production of, crude oil and natural gas. This paragraph does | 446 |
not exempt from "retail sale" or "sales at retail" the sale of | 447 |
tangible personal property that is to be incorporated into a | 448 |
structure or improvement to real property. | 449 |
(h) To use the benefit of a warranty, maintenance or service | 468 |
contract, or similar agreement, as described in division (B)(7) of | 469 |
section 5739.01 of the Revised Code, to repair or maintain | 470 |
tangible personal property, if all of the property that is the | 471 |
subject of the warranty, contract, or agreement would not be | 472 |
subject to the tax imposed by this section; | 473 |
(j) To use or consume the thing transferred primarily in | 476 |
storing, transporting, mailing, or otherwise handling purchased | 477 |
sales inventory in a warehouse, distribution center, or similar | 478 |
facility when the inventory is primarily distributed outside this | 479 |
state to retail stores of the person who owns or controls the | 480 |
warehouse, distribution center, or similar facility, to retail | 481 |
stores of an affiliated group of which that person is a member, or | 482 |
by means of direct marketing. This division does not apply to | 483 |
motor vehicles registered for operation on the public highways. As | 484 |
used in this division, "affiliated group" has the same meaning as | 485 |
in division (B)(3)(e) of section 5739.01 of the Revised Code and | 486 |
"direct marketing" has the same meaning as in division (B)(35) of | 487 |
this section. | 488 |
(43) Sales conducted through a coin operated device that | 506 |
activates vacuum equipment or equipment that dispenses water, | 507 |
whether or not in combination with soap or other cleaning agents | 508 |
or wax, to the consumer for the consumer's use on the premises in | 509 |
washing, cleaning, or waxing a motor vehicle, provided no other | 510 |
personal property or personal service is provided as part of the | 511 |
transaction. | 512 |
(44) Sales of replacement and modification parts for engines, | 513 |
airframes, instruments, and interiors in, and paint for, aircraft | 514 |
used primarily in a fractional aircraft ownership program, and | 515 |
sales of services for the repair, modification, and maintenance of | 516 |
such aircraft, and machinery, equipment, and supplies primarily | 517 |
used to provide those services. | 518 |
(45) Sales of telecommunications service that is used | 519 |
directly and primarily to perform the functions of a call center. | 520 |
As used in this division, "call center" means any physical | 521 |
location where telephone calls are placed or received in high | 522 |
volume for the purpose of making sales, marketing, customer | 523 |
service, technical support, or other specialized business | 524 |
activity, and that employs at least fifty individuals that engage | 525 |
in call center activities on a full-time basis, or sufficient | 526 |
individuals to fill fifty full-time equivalent positions. | 527 |
(E) The tax collected by the vendor from the consumer under | 560 |
this chapter is not part of the price, but is a tax collection for | 561 |
the benefit of the state, and of counties levying an additional | 562 |
sales tax pursuant to section 5739.021 or 5739.026 of the Revised | 563 |
Code and of transit authorities levying an additional sales tax | 564 |
pursuant to section 5739.023 of the Revised Code. Except for the | 565 |
discount authorized under section 5739.12 of the Revised Code and | 566 |
the effects of any rounding pursuant to section 5703.055 of the | 567 |
Revised Code, no person other than the state or such a county or | 568 |
transit authority shall derive any benefit from the collection or | 569 |
payment of the tax levied by this section or section 5739.021, | 570 |
5739.023, or 5739.026 of the Revised Code. | 571 |
Sec. 5739.05. (A)(1) The tax commissioner shall enforce and | 572 |
administer sections 5739.01 to 5739.31 of the Revised Code, which | 573 |
are hereby declared to be sections whichthat the commissioner is | 574 |
required to administer within the meaning of sections 5703.17 to | 575 |
5703.37, 5703.39, 5703.41, and 5703.45 of the Revised Code. The | 576 |
commissioner may adopt and promulgate, in accordance with
sections | 577 |
119.01 to 119.13 of the Revised Code, such rules as
the | 578 |
commissioner deems necessary to administer sections 5739.01 to | 579 |
5739.31 of
the Revised Code. | 580 |
(B)
Upon application, the commissioner may authorize a
vendor | 587 |
to
pay on a predetermined basis the
tax levied by or
pursuant to | 588 |
section 5739.02, 5739.021, 5739.023,
or 5739.026 of
the Revised | 589 |
Code upon sales of things produced or
distributed or
services | 590 |
provided by such vendor, and
the
commissioner may
waive
the | 591 |
collection of the tax from the consumer. The commissioner
shall | 592 |
not grant such authority unless
the commissioner finds that
the
| 593 |
granting of the authority would improve compliance and
increase | 594 |
the efficiency of the administration of the tax. The
person to | 595 |
whom
such authority is granted
shall post a notice, if
required by | 596 |
the
commissioner, at the location where the product is
offered for | 597 |
sale, that the tax is included in the selling price.
The | 598 |
comissionercommissioner may adopt rules to administer this | 599 |
division. | 600 |
(C) The commissioner may authorize a vendor to pay, on the | 601 |
basis of a prearranged agreement under this division, the tax | 602 |
levied by section 5739.02 or pursuant to section 5739.021, | 603 |
5739.023, or 5739.026 of the Revised Code, and waive the | 604 |
requirement that the vendor maintain the complete and accurate | 605 |
record of individual taxable sales and tax collected thereon | 606 |
required by section 5739.11 of the Revised Code, upon application
| 607 |
of the vendor, if
the
commissioner finds that
the conditions of | 608 |
the vendor-applicant's business are such that
the maintenance of | 609 |
such records of individual taxable sales and
tax collected
thereon | 610 |
would impose an unreasonable burden upon the
vendor. If
the | 611 |
commissioner determines that such unreasonable
burden has
been | 612 |
imposed, the vendor and the commissioner shall
agree to the
terms | 613 |
and conditions of a test check to be conducted.
If the
parties are | 614 |
unable to agree to the terms and conditions of
the
test check, the | 615 |
application shall be denied. The test check
conducted shall | 616 |
determine the proportion that taxable retail
sales
bear to all of
| 617 |
the vendor's retail sales and the ratio
which
the tax
required to | 618 |
be collected under sections 5739.02, 5739.021,
and
5739.023 of the | 619 |
Revised Code bears to the receipts from the
vendor's taxable | 620 |
retail sales. | 621 |
The vendor shall collect the tax on
the vendor's taxable | 622 |
sales and
the vendor's liability for collecting or remitting
shall | 623 |
be based upon the
proportions and ratios established by the
test | 624 |
check, and not
upon any other basis of determination, until
such | 625 |
time as a
subsequent test check is made at the request of
either | 626 |
the vendor
or the commissioner where either party believes
that | 627 |
the nature
of the vendor's business has so changed as to make
the | 628 |
prior or
existing test check no longer representative. The | 629 |
commissioner
may give notice to the vendor at any time that the | 630 |
authorization
is revoked or the vendor may notify the commissioner | 631 |
that
the
vendor no longer elects to report under the | 632 |
authorization. Such notice
shall be delivered to the other party | 633 |
personally or by registered
mail. The revocation or cancellation | 634 |
is not effective prior to
the date of receipt of such notice. | 635 |