Hardy, Ark. – In a decisive 4-2 vote, the Hardy City Council adopted Ordinance 2026-2, abolishing the city’s Advertising and Promotion (A&P) Commission and repealing the 3% sales tax that applied to prepared foods and lodging. The ordinance will take effect on Jan. 8.
Mayor emphasizes economic opportunity
Mayor Ethan Barnes, who presided over the meeting, framed the decision as a chance for the community to reset its fiscal policy. “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.
He added that a lower tax rate creates a more inviting environment for restaurants and hotels. “Businesses want to come invest here. 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,” Barnes explained.
Commission president expresses disappointment
John Treat, president of the A&P Commission, voiced strong disappointment. “I’m very disappointed. I’m sad. This is going to have a tremendous and lasting impact on our town,” Treat said. He noted that the commission has helped raise Hardy’s profile and that an estimated $200,000 a year could disappear from the local economy.
Despite his concerns, Treat said he will remain president for the next 60 days to oversee the commission’s orderly closure. “Hardy is strong. 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,” he added.
Resident perspective
Hardy resident Jonathan Osborne expressed opposition to the commission, arguing that its benefits have not been evenly distributed. “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 suggested that cooperation among all community members is the way forward.
Implications for the town
The ordinance also repeals earlier ordinances (2001-15, 2017-4, and 2023-3) that had raised the commission’s tax rate from 1.875% to 3%. By removing the tax, city officials hope to lower the cost of doing business and encourage new investment in Hardy’s hospitality sector.
Local business owners have welcomed the change, noting that a lower tax burden could make Hardy more competitive with neighboring towns. While some community members worry about the loss of revenue, the council’s vote reflects a broader trend of municipalities seeking to streamline taxes to attract growth.
Next steps
The ordinance will become law on Jan. 8, at which point the A&P Commission will cease operations and the sales tax will be removed from prepared foods and lodging. The city will monitor economic indicators in the coming months to assess the impact of the tax repeal on local businesses and municipal finances.
Original reporting: KY3 Springfield (local) — read the source article.
