HARDY, Ark. — In a 4-2 vote, the Hardy City Council approved an ordinance to dissolve the city’s Advertising and Promotion (A&P) Commission and repeal its 3% sales tax on prepared foods and lodging. The decision, outlined in Ordinance 2026-2, is set to take effect on Jan. 8, 2027.
This move follows discussions tabled at last month’s meeting. Mayor Ethan Barnes, who presided over the council’s six-member quorum during the vote, said the ordinance allows Hardy to reset its approach to local taxation.
“This is a very fair opportunity for the city to reset itself and then potentially go back out to the voters,” Barnes said. “We can ask the people of Hardy directly whether they want to be taxed by a vote under the State of Arkansas.”
Barnes argued that lowering the tax burden could make the city more appealing to businesses. “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,” he said.
However, John Treat, president of the soon-to-be-defunct A&P Commission, expressed disappointment and concern. Treat, who will remain in his role for the commission’s final 60 days, said he believes the decision will have a lasting impact on Hardy’s economy.
“I’m very disappointed,” Treat said. “I’m sad. This is going to have a tremendous and lasting impact on our town.”
According to Treat, the A&P Commission has played a pivotal role in promoting Hardy and had directed an estimated $200,000 annually into the local economy. He emphasized the importance of maintaining Hardy’s appeal as a regional and statewide destination, despite the ordinance. “Hardy is strong. Hardy is vibrant. Merchants will pull together… and we will continue to keep Hardy a destination for the people of Arkansas and beyond,” Treat said.
Residents also weighed in on the decision. One Hardy resident, Jonathan Osborne, opposed the commission, claiming its efforts were not inclusive.
“They highlight some and skip over others,” Osborne said. “For other people, it’s not fair.” Osborne emphasized the need for community cooperation moving forward, expressing concern that the commission focused more on competition than collaboration.
In addition to dissolving the A&P Commission and its tax, the ordinance repeals previous measures—2001-15, 2017-4, and 2023-3—which had established the commission and incrementally raised the now-repealed sales tax rate from 1.875% to 3%.
The council’s decision introduces significant changes to how Hardy promotes itself and funds local economic initiatives, with supporters hoping it fosters greater economic growth and detractors warning of potential challenges ahead.