IA HF2531

Counties and cities must divest themselves of any mineral interests they own or control and convey those interests to the surface landowner at no cost, unless the county or city is also the fee simple surface owner.

"Minerals" includes coal, oil, gas, hydrocarbons, oil shale, gemstones, metals, fissionable and nonfissionable ore, and geothermal resources.

Counties must complete all required conveyances within five years of the Act's effective date; newly acquired mineral interests must be conveyed within 90 days.

Counties are prohibited from offering mineral interests for sale at tax sales; instead, delinquent mineral taxes must trigger a notice process under section 458A.20 allowing surface owners the opportunity to acquire the interests.

Taxes on mineral rights not owned by the surface landowner shall not constitute a lien on the land and must be assessed separately at a minimum rate of five cents per acre.