§ 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.