Sec 5-104.02. 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 chapter 2, article 2 of this title shall comply with rules of the director adopted pursuant to section 5-104 and shall within ten days after the contest pay to the department four per cent of the gross receipts, after the deduction of city, state and federal taxes, of such match or exhibition.

B. The department shall verify the gross receipts of a contest. The director may require a person or corporation licensed under chapter 2, article 2 of this title to supply a certified financial audit to the department. The director shall adopt rules that require each person or corporation licensed under chapter 2, article 2 of this title 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 may require. 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. At the end of each month the director shall report to the department of administration the total amount received under chapter 2, article 2 of this title from all sources, including license fees, and shall deposit that amount, excluding license fees, pursuant to sections 35-146 and 35-147, in the state general 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 per cent of the total number of tickets issued for the event or seventy-five tickets, whichever is greater.

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