Hardy City Council votes to dissolve the city’s A&P commission, tax

HARDY, Ark. (KAIT) - The Hardy City Council passed Ordinance 2026-2 in a 4-2 vote, abolishing the city’s Advertising and Promotion Commission and its 3% sales tax on prepared foods and lodging. The ordinance is set to go into effect Jan. 8.

The council had tabled the issue during last month’s meeting. Mayor Ethan Barnes presided over the meeting with the city’s six council members, establishing a quorum.

Barnes said the decision to bring the issue back to the community is the fairest move he could think of.

“This is a very fair opportunity for the city to reset itself and then potentially go back out to the voters in the City of Hardy and ask the voters whether they would actually like to be taxed by a vote of the people in the State of Arkansas,” Barnes said.

Barnes said the change invites new opportunities for the city with a lower tax rate.

“Businesses want to come invest here,” Barnes said. “This is a more attractive economy for a restaurant or a hotel when you can show them that your tax rates are not over 12 and 13 percent.”

John Treat, president of the A&P Commission, said he does not see the decision the same way. Treat will remain president for the next 60 days of the commission’s existence.

“Well, of course, I’m very disappointed,” Treat said. “I’m sad. This is going to have a tremendous and lasting impact on our town.”

Treat said many people know Hardy because of the efforts of the A&P Commission. He said an estimated $200,000 a year will disappear from the Hardy economy.

Hardy resident Jonathan Osborne said he opposes the commission because not everyone benefits from the outcome.

“They highlight some and they skip over others,” Osborne said. “I personally don’t care about being skipped over. It doesn’t matter to me whether I play music and party or not. I’m a musician and play everywhere. But for other people, it’s not fair.”

He added that cooperation is the way forward, and that from his view, the commission is more concerned with competition than working with the entire community.

Treat said he is hopeful, regardless of the outcome.

“But the more important thing, Hardy is strong,” Treat said. “Hardy is vibrant. Merchants will pull together, restaurant owners, hotel owners, and we will continue to get Hardy’s story out there and keep Hardy a destination for the people of Arkansas and beyond.”

The move also repeals previous ordinances 2001-15, 2017-4 and 2023-3, which established the commission and raised its sales tax rate from 1.875% to 3%.

To report a typo or correction, please click here.