§ 227. Admission tax. 1. Every corporation holding a race meeting pursuant to this article shall collect in addition to the admission price of tickets sold or otherwise disposed of, if any for each such meeting held by such corporation, a tax equivalent to four per centum of such admission price which tax is hereby imposed. In case of failure to collect such tax the same shall be imposed upon the corporation holding the race meeting. Such tax shall be paid to the department of taxation and finance 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 department of taxation and finance may require. The payment of tax shall be accompanied by a report under oath showing the total of all such taxes, together with such other information as the department of taxation and finance may require. The amounts so collected shall be paid into the state treasury to the credit of the general fund to be appropriated up to the extent of two hundred thousand dollars annually by the legislature for the benefit of agricultural fairs entitled to share in the distribution of moneys for agricultural purposes. Before any corporation liable to pay the tax hereby imposed shall hold any race meeting, or exercise any of the powers conferred by section two hundred three of this article, they shall pay all taxes theretofore due; and shall file a statement with the department of taxation and finance 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 department of taxation and finance shall have the power to examine or cause to be examined the books and records of the corporation so conducting any such 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 department of taxation and finance 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.