The Hardy City Council voted 4-2 on Monday night to abolish the city's Advertising and Promotions Commission and repeal its three percent sales tax on prepared foods and lodging. The decision will take effect on January 8, according to city officials.
Monday’s decision repeals ordinances that had previously established the commission and raised the sales tax from 1.875% to three percent. The council initially tabled the measure at its previous meeting before bringing it back for a vote this week.
The change affects funding designed to promote tourism and support local attractions, which was managed by the now-dissolved Advertising and Promotions Commission. The three percent tax was levied on prepared meals, such as restaurant orders, and lodging, including hotel stays, within city limits.
City council members debated the matter during recent meetings, with supporters of the repeal citing concerns over the tax burden on residents and local businesses. Opponents raised questions about how the city will address the loss of revenue previously earmarked for tourism-related initiatives.
The new ordinance officially nullifies the commission and the related tax starting early next year, signaling a significant policy change for Hardy.