5-226. Levy of tax on gross receipts; disposition; verification and financial audit; definition

A. Any person who promotes a boxing contest in this state pursuant to this article shall comply with rules adopted pursuant to this article and shall within ten days after the contest pay to the department four percent of the gross receipts, after the deduction of city, state and federal taxes, of the match or exhibition.

B. The department shall verify the gross receipts of a contest. The director may require a person licensed under this article to supply a certified financial audit to the department. The director shall adopt rules that require each person licensed under this article to select a certified public accountant to conduct the financial audit. The financial statements prepared pursuant to this section shall be prepared in accordance with generally accepted accounting principles and shall include any additional schedules the director requires. A person subject to a financial audit under this section shall afford reasonable and needed facilities and make returns and exhibits to the department in the form and at the time prescribed by the director.

C. The department shall establish an unarmed combat subaccount within the racing regulation fund established by section 5-113.01. At the end of each month the director shall report to the department of administration the total amount received under this chapter from all sources, including license fees, and shall deposit that amount, excluding license fees, pursuant to sections 35-146 and 35-147, in the unarmed combat subaccount of the racing regulation fund.

D. A promoter may issue complimentary tickets that are exempt from taxation pursuant to this title. If a promoter issues complimentary tickets, the exemption from taxation applies to two percent of the total number of tickets issued for the event or seventy-five tickets, whichever is greater.

E. The department shall collect and account for revenues for the commission, including license fees required by section 5-230, the levy of the tax on gross receipts imposed by this section and the cash bond or surety bond deposited pursuant to section 5-229. The director shall report and deposit all revenues collected pursuant to this subsection, from whatever source, pursuant to subsection C of this section, except that license fees required by section 5-230 shall be deposited in the racing regulation fund established by section 5-113.01. The director shall adopt rules as necessary to accomplish the purposes of this section.

F. For the purposes of this section, " gross receipts" means all receipts from the face value of tickets sold.