The Fairfax County Board of Supervisors is weighing several options for how to structure the new tax district in Tysons Corner.
The so-called service district, which the board approved in January, will add a surcharge to property owners’ real estate taxes to help generate additional revenues for transportation projects in Tysons.
The service district is expected to generate about 8 percent of the more than $3 billion needed for Tysons transportation projects over the next 40 years.
How the county opts to structure the new tax district will affect the rate that property owners will pay, starting in 2014.
The county could issue bonds backed by the tax district, or it could use a pay-as-you go method, adjusting the tax rate based on year-to-year cash flow needs.
County staff also outlined two options for setting the rate: setting a stable rate over a few decades, or starting at a lower rate and increasing it over time.
Under the pay-as-you-go scenario, the tax rate could reach as high as 20 cents per $100 of assessed value and the service district would be needed longer than under other scenarios, until 2053.
In the phased approach, the initial rate could be as low as 2 cents per $100 of assessed value and reach as high as 15 cents and would end in 2048. A stable tax rate would start off at 9 cents per $100 of assessed value, from 2014 to 2038, and then drop to 7 cents through 2045.
Next week, the Fairfax County Board of Supervisors will be appointing the members of a 17-member advisory board for the Tysons Service District, and the advisory board will be asked to weigh in on the tax rate and structure for the service district.
The Board of Supervisors will set the initial tax rate as part of their deliberations on the fiscal 2014 budget this spring.