The Hardy City Council has voted to abolish the city’s Advertising and Promotion Commission and eliminate the Hardy Arkansas 3 percent restaurant and lodging tax collected on prepared food and lodging purchases.
The council approved Ordinance 2026-2 by a vote of 4–2 during its Monday, November 9, 2026, meeting. The ordinance is scheduled to take effect January 8, 2027.
The decision will eliminate the local Advertising and Promotion Commission, commonly called the A&P Commission, which has been responsible for promoting tourism, events and attractions in Hardy. The commission has been funded through a 3% tax collected on prepared food and lodging sold within the city.
What the New Ordinance Eliminates
The newly approved ordinance repeals the local A&P tax on prepared food purchases and lodging accommodations.
Under Hardy’s existing tax rules, the 3% tax applies to prepared food and beverages sold by restaurants, cafes, cafeterias, delis, convenience stores and similar establishments. The tax also applies to hotel rooms, motel accommodations and certain short-term rentals.
The council’s decision eliminates that additional 3% tax beginning January 8, 2027. Other applicable state, county and city sales taxes are not eliminated by the ordinance.
The council also voted to repeal previous city ordinances 2001-15, 2017-4 and 2023-3, which established and modified the commission and its tax. The tax had previously been increased from 1.875% to 3%.
Mayor Says Change Could Help Attract Businesses
Hardy Mayor Ethan Barnes supported the move, arguing that eliminating the additional tax could make the city more attractive to restaurants, hotels and other businesses considering investing in Hardy.
Barnes said the decision also provides an opportunity for residents to reconsider how tourism promotion should be funded. He suggested voters could eventually be asked whether they want to approve a similar tax.
The mayor has acknowledged that he supported the earlier increase to 3% but now believes that decision was a mistake. Barnes said removing the tax could provide a more competitive environment for existing businesses and potential new development.
A&P Commission President Warns of Economic Impact
Not everyone supports the decision. John Treat, president of the Hardy Advertising and Promotion Commission, expressed disappointment with the council’s vote.
Treat said the commission’s work has helped promote Hardy as a destination for visitors throughout Arkansas and surrounding states. He warned that eliminating the tax could result in the loss of an estimated $200,000 annually in money supporting tourism-related efforts. That figure is Treat’s estimate, not an independently established economic loss.
Treat believes the elimination of the commission could have a lasting effect on the city’s tourism promotion and visibility. Despite his concerns, he expressed confidence that local merchants, restaurant owners and lodging businesses will continue working together to promote Hardy.
Some Residents Questioned How Tax Money Was Spent
During earlier discussions, some residents and business owners questioned whether the Advertising and Promotion Commission’s spending benefited the entire community. Critics argued that certain businesses and downtown attractions received more promotional attention than others.
Some supported reducing or eliminating the tax, while others suggested restructuring the commission or allowing residents to vote on the issue. Supporters of keeping the commission argued that tourism advertising, special events and promotional campaigns provide important benefits to the city’s economy.
Council Previously Delayed Decision
The November 9 decision followed an earlier council discussion in October. During the October 19 meeting, council members tabled the proposed ordinance following concerns about the timing of the decision and requests for additional discussion.
The issue returned for consideration at the November 9 meeting. Mayor Barnes presided over the meeting with all 6 council members present, and the measure passed 4–2.
What Happens January 8?
Under the approved ordinance, the city’s Advertising and Promotion Commission and its additional 3% prepared food and lodging tax are scheduled to end January 8, 2027. Restaurants, lodging operators and other affected businesses will need to account for the change when collecting taxes after the ordinance takes effect.
The action does not eliminate other state, county or municipal sales taxes. City officials have not announced a replacement funding plan for the commission’s former activities, and the long-term effect on tourism promotion, city events and business development remains uncertain.
At a Glance
- Government: City of Hardy, Sharp County
- Meeting date: Monday, November 9, 2026
- Ordinance: 2026-2
- Vote: 4–2
- Action: Abolish the Advertising and Promotion Commission and eliminate the additional 3% tax on prepared food and lodging
- Effective date: January 8, 2027
- Previous ordinances repealed: 2001-15, 2017-4 and 2023-3
- City Hall: 124 Woodland Hills Road, Hardy, Arkansas 72542
- Phone: 870-856-3811
- Website: cityofhardy.org
Source: KAIT-TV / K8 News, reporter Josh Droll, November 10, 2026; City of Hardy Advertising and Promotion Commission tax documents.
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