(1) To cities and counties, an amount for each institution with a branch in this state as determined in this subdivision (1).

(A) Three percent (3%) of the net earnings of the company less seven percent (7%) of the ad valorem taxes paid by the company on its real and tangible personal property for the second fiscal year preceding the year in which the distribution is made. For purposes of this subdivision (1), “net earnings” does not include amounts attributable to interest earned on bonds and other obligations of this state. The total amount thus determined shall be allocated between the county and municipal governments where the office of the investment company is located in the same proportion as the property tax rate of each such taxing jurisdiction shall bear to the sum of the property tax rates;

(B) In circumstances where an investment company has more than one (1) branch or office, the total allocation attributable to such company as determined in subdivision (1)(A) shall be further allocated between such counties and cities where its branches or offices are located as follows:

(i) The proportionate percentage that is produced by the ratio of account balances attributed to each branch or office of the company to the total account balances of the company shall be determined as of January 1 of each year, and the percentage so determined shall then be applied to the total allocation to determine the portion of the total attributable to each branch or office;

(ii) The branches or offices shall then be grouped each to a common location so as to determine the aggregate allocation of all branches or offices located in each individual county and municipality; and

(iii) The percentage of the total allocation allowable to each county and municipality shall be divided between the county and municipality where the branch or office is maintained in the same proportion as the property tax rates of each for the second year preceding the year in which the distribution under this section is made shall bear to the total of the property tax rates.

(C) The director of the division of property assessments shall provide to the commissioner, periodically on a timely basis, the ad valorem property tax rates for each taxing jurisdiction. The commissioner shall report the amount of such allocations made to each county and municipality to the comptroller of the treasury for audit purposes on an annual basis.

(D) The status of each investment company as of January 1 of the fiscal year for which the allocation is calculated shall be the determining basis.

(E) If the net earnings of any investment company shall be redetermined for any period in accordance with this part, the commissioner shall recalculate the allocation attributable to the company, and any indicated increase or decrease in allocation shall be effected in the next succeeding general allocation to the respective county and municipal governments, as appropriate.

(F) The commissioner has the authority and power to prescribe forms upon which all investment companies shall report such facts and information as will enable the department to ascertain the correctness of the allocation. The department has the full power to summon witnesses, to inspect or require the production of books and papers, and to obtain and consider any evidence and records other than the reports submitted by such companies that it may deem proper or necessary to carry out its responsibilities under this section. If any investment company subject to this part fails, refuses or neglects to collect and file such form with the department as provided by this section, the department shall determine the amount of the allocation in regard to such company on the basis of the best information available.

(2) After allocation to counties and municipalities as provided in subdivision (1), the remainder of the taxes collected under this part shall be applied to and become a part of the general fund of the state.