HARDY, Ark. — The Hardy City Council on Monday night deliberated on an ordinance to dissolve the city’s Advertising and Promotion (A&P) Commission, a decision that would eliminate a 3% sales tax on prepared food and lodging as well as the commission overseeing its use. If passed, the ordinance would take effect on Dec. 19.

The meeting drew hundreds of residents, many voicing strong opinions about the potential impact on Hardy's economy and tourism. Tensions surfaced early, with some residents and council members arguing that the matter warranted more discussion before being added to the agenda. Despite the controversy, the motion to approve the agenda passed 4-2.

The 3% tax, initially set at 1.875%, was increased under the administration of Mayor Ethan Barnes. Reflecting on the decision, Barnes admitted it had been a mistake.

"Full ownership and responsibility," Barnes said. "I made a mistake. We should not have raised the tax at that time, and I take full responsibility for that today."

Critics of the proposed ordinance, including A&P Commission Chair John Treat, said neither the commission nor the public had been informed in advance. Treat, co-owner of Three Magi, described the situation as symptomatic of small-town politics.

"We always have to be in conversation. We are always negotiating," Treat said. "But unfortunately, we have tried and tried to work with the mayor. What the mayor wants is capitulation and control. We are willing to work and come up with good solutions for what’s good for Hardy, but that takes partnership."

Meanwhile, other business owners voiced differing opinions. Corey Gilliland, who operates a business outside of the downtown area, felt the tax benefits downtown establishments disproportionately.

"It’s not about McDonald’s, it’s not about our restaurant, it’s not about any of the motels," Gilliland said. "It’s about Downtown Hardy, and they don’t have to pay any of it. So, they get free advertising, and we don’t."

Gilliland suggested keeping the commission but spreading its benefits more equitably or lowering the tax rate. While he supports changes to the commission, he ultimately favors its dissolution in its current form.

Supporters of the ordinance argued that residents should have more say in how their taxes are used. Mayor Barnes emphasized that the commission, established in 2001, was created without voter consent, and not everyone in the community has benefited from the tax revenue. Some attendees agreed but expressed concerns about the timing, suggesting the decision feels rushed without adequate public input.

Opponents of the ordinance warned against making such a significant move without careful consideration. They questioned whether the city was seeking additional financial control before citizens could weigh in on the matter.

As of 10 p.m. on Monday, the meeting was still ongoing as community members and city leaders continued to debate the future of the commission and the tax.

No final decision had been reported by press time.