House Bill 42 allows a city to contract with the county tax commissioner to prepare the tax digest for the city, assess and collect city taxes, fees, and special assessments in the same manner as county taxes. The bill requires the contract to be negotiated and approved by the city, county, and county tax commissioner. The contract will only be applicable and limited to the county tax commissioners current term and the year immediately following it.

House Bill 42 requires a county to pay its tax commissioner a fixed salary in addition to any amounts received by the county and due to the tax commissioner under any contracts approved by the county governing authority provided that the aggregate amount paid to the county tax commissioner does not exceed 50 percent of the minimum annual salary to be paid to the county tax commissioner.The bill also strikes the language limiting applicability to any county which has fewer than 50,000 tax parcels within the county.

House Bill 42 will become effective upon approval by the Governor except for any active contract executed the day before the bill's approval by the Governor.