UPDATE: Tamworth business chamber president Jye Segboer conceded it might not have been the right time for the events levy given the current climatic and economic conditions in the region.
However, he stopped short of echoing the chief criticism from IPART which claimed the community was not sufficiently aware of the proposed rate hike and its implications.
Mr Segboer said there was "probably close to 40 consultation meetings" but suggested the community dialogue should have been carried out over a prolonged period of time.
"I think given the current severity of the drought and the length of it, which no-one foresaw 18 months ago when council first flagged the levy, was a big part of the decision," he said.
"At this time, it's a struggle for many businesses to impart 11.8 per cent rise on people's rates prob, it's not the right time to be doing that.
"I do believe council did a good job of consultation, but it could have been for an extended and not as brief as it was done."
EARLIER: TAMWORTH Regional Council's bid to impose an events levy has been rejected by the state's revenue-raising watchdog after deemed the community was not sufficiently aware of the rate rise and its impact.
The Independent Pricing and Regulatory Tribunal (IPART) chairman, Paul Paterson, announced on Monday morning the council's bid had failed.
"Our analysis found that the council had not sufficiently demonstrated that the community was aware of the special variation and its impact," Dr Paterson said.
"It was apparent that the majority of business ratepayers were not aware of the extent of the special variation and its impact, which was primarily communicated in various information sessions."
The entire increase was to be levied on business ratepayers with a 2.7 per cent increase in 2019-20 and a 4.5 per cent increase in the average business rate in each year from 2020-21 to 2022-23 to fund an event management and attraction strategy.
More to come.