Philip Winter, of Almondsbury Parish Council, is being investigated by UKIP over offensive language about black people in a tweet from an account that includes his political title.
Council chair Phil Hall said: "What he's done is tar the whole community with his own views by using the term councillor."
Mr Winter said his account was hacked and "words in that tweet were altered".
He said he had reported it to Twitter and had closed his account.
UKIP said Mr Winter's membership had been "suspended immediately" and added there would be an investigation and disciplinary hearing.
A UKIP councillor has been suspended over a racist comment on Twitter.