Section 406. State admission tax

1.  Every corporation, association or
  person holding a quarter horse race meeting  pursuant  to  sections  two
  hundred  twenty-two  through  seven  hundred  five of this chapter shall
  collect in addition to the admission price of tickets sold or  otherwise
  disposed of, for each such meeting held by such corporation, association
  or  person,  a  tax equivalent to four per centum of each such admission
  price; which tax is hereby imposed.  In case of failure to collect  such
  tax  the  same  shall  be  imposed  upon the corporation, association or
  person holding the race meeting. Such tax shall be paid to the state tax
  commission within ten days after the close of each  such  race  meeting,
  provided,  however,  that  if the race meeting continues for a period of
  more than thirty days the tax shall be paid at such regular intervals as
  the tax commission may require. The payment of tax shall be  accompanied
  by  a  report  under  oath showing the total of all such taxes, together
  with such information as the tax commissioner may require.  The  amounts
  so  collected shall be paid into the state treasury to the credit of the
  general fund. Before any corporation, association or  person  liable  to
  pay  the tax hereby imposed shall hold any race meeting, or exercise any
  of the powers conferred by sections two hundred twenty-two through seven
  hundred five of this chapter, it or he shall pay all  taxes  theretofore
  due;  and  shall file a statement with the tax commission containing the
  name of the place and stating the time when such races are to  be  held.
  Nothing  in  this section shall apply to a race meeting conducted by any
  state, county or other agricultural association.
    2. The tax commission shall have the power to examine or cause  to  be
  examined  the  books and records of the corporation, association, person
  or persons so conducting any such quarter horse race  meeting,  and  may
  hear  testimony  and  take  proofs  material  for  its  information; and
  therefrom or from any other data which shall be satisfactory to  it  the
  tax commission may order and state an account for the tax due the state,
  together  with  the  expense  of such examination. A penalty of five per
  centum and interest at the rate of one per centum per month from the due
  date to the date of payment of the tax shall be payable in case any  tax
  imposed by this section is not paid when due.