(1) Imposition. There is imposed a sales and use tax as authorized by RCW 82.14.540, upon every taxable event, as defined in Chapter 82.14 RCW, as the same exists or may hereafter be amended, which occurs within the City limits. The tax shall be imposed upon and collected from those persons from whom the State sales and/or use tax is collected pursuant to Chapters 82.08 and 82.12 RCW, as the same now exist or may hereafter be amended.

(2) Tax Rate. The rate of the tax imposed by subsection (1) of this section shall be the maximum rate permitted to cities under RCW 82.14.540, and shall expire 20 years after the date on which the tax is first imposed.

(3) Calculation. The maximum amount to be received by the City from the tax each year shall be equal to the taxable retail sales within the City limits of Covington in State fiscal year 2019 multiplied by the tax rate. The tax imposed in subsection (1) of this section shall be deducted from the amount of tax otherwise required to be collected or paid to the Department of Revenue (DOR) under Chapter 82.08 or 82.12 RCW, as the same now exists or may hereafter be amended. DOR shall collect and administer the tax on behalf of the City of Covington at no cost to the City. In the event that the amount of tax exceeds the maximum amount allowed to the City under RCW 82.14.540, any excess shall be remitted to the State Treasurer in accordance with RCW 82.14.540. (Ord. 14-20 § 2 (Exh. A); Ord. 14-19 § 1)