Just use .empty()
:
// snip...
}).done(function (data) {
// Clear drop down list
$(dropdown).empty(); // <<<<<< No more issue here
// Fill drop down list with new data
$(data).each(function () {
// snip...
There’s also a more concise way to build up the options:
// snip...
$(data).each(function () {
$("<option />", {
val: this.value,
text: this.text
}).appendTo(dropdown);
});