18 Jan Sales Tax Analysis for the Jekyll Island Authority
Location: Jekyll Island, Georgia
Client: Jekyll Island Authority
Lead Consultant: KB Advisory Group
Services Provided: Sales Tax Analysis
KB Advisory Group performs a Sales Tax Analysis for the Jekyll Island Authority
KB Advisory Group (KB) Scope
The Jekyll Island Authority engaged KB Advisory Group to prepare an analysis of potential sales taxes that could be generated from a Special Purpose Local Option Sales Tax (SPLOST). The SPLOST would be used to fund future infrastructure projects in in Glynn County.
The analysis is based on a detailed examination of the level of taxable sales activities which Jekyll Island generated in 2021. It also included a projection of potential SPLOST revenues from Jekyll Island over a five-year projection period beginning in 2023, which would be the first operational year of the SPLOST if approved in 2022.
Jekyll Island celebrated its 75th year as a state park in 2022 and generated taxable sales from a wide range of activities on the island. In 2021, Jekyll Island generated an estimated $168 million in taxable sales. Projections put this number at $218.8 million by 2023.
KB analysts estimated that the proposed SPLOST revenue over five years (2023-2027) would reach $12 million. Of this $12 million, the Jekyll Island Authority requested $3.1 million in funding from the future SPLOST for needed infrastructure. This represented only 26% of the SPLOST revenues generated by Jekyll Island over five years. Ultimately, the SPLOST was approved by Glynn County voters.
Read more about the KB Advisory Group’s analysis here.