Eureka Springs Times-Echo The fate of the Eureka Springs City Advertising and Promotion Commission is in the hands of local voters.

If it gains approval, Local Issue No. 3, on the ballot for the Nov. 5 general election, would abolish the CAPC and repeal the city’s 3 percent advertising and promotion tax.

The initiative was placed on the ballot after a petition circulated by local resident Pat Matsukis obtained the 148 necessary signatures from local voters.

Asked for a comment on Wednesday, Oct. 30, Matsukis told the Times-Echo that she would “think about this and call you back.”

As of press time, Matsukis had not returned the call. However, she has been quoted in published reports as suggesting that the advertising and promotion tax — the proceeds of which can be used only for specific purposes according to state law and cannot be used for the city’s infrastructure needs — could be replaced with another tax that could generate revenue to address infrastructure as well as supporting advertising and operation of the Auditorium. Matsukis was quoted as saying that by having Issue No. 3 placed on the ballot, she hoped to “at least start the discussion.” Matsukis also noted the history of turmoil surrounding the CAPC, which is involved in a pending lawsuit filed by former employees and contractors and saw former chair Chris Clifton resign under pressure just four months ago.

Matsukis’ proposal has drawn widespread criticism from city officials and local business owners, who say its impact on tourism could be devastating for the local economy and could result in business closures, cuts to city services such as police, fire and transit and increased unemployment as the city’s tourism industry falters.

Opponents of Issue No. 3 also note that any new tax would have to be approved by voters and point to what they describe as a more stable CAPC under the leadership of the current commission and executive director Mike Maloney.