Highlights of the report given to Virginia Gov. Gerald L. Baliles by his Commission on Transportation Into the 21st Century to finance more than $500 million a year in new revenue for highway and other transportation projects:

Increase the sales tax from 4 percent to 4.75 percent, which would raise $301.5 million in fiscal 1988 and $3.5 billion during the next 10 years.

An additional option is to increase the sales tax to a total of 5 percent, with the extra $100.5 million annually available for nontransportation uses.

Add 4 cents a gallon to the gasoline tax, for a total of 19 cents a gallon, producing $128.8 million in fiscal 1988 and $1.28 billion over 10 years.

Double the titling tax, the sales tax on motor vehicles, to 4 percent of the vehicle's cost, minus the value of any trade-in, to raise $119.1 million the first year and $1.33 billion in 10 years.

Earmark the interest on current and future highway fund balances for a new construction fund, worth $22.1 million the first year and $1.96 million in 10 years.

Issue state bonds for highway projects, including revenue bonds for toll roads and "pledge" bonds to be paid from gasoline taxes.

Create a Virginia Transportation Board that would have authority over highways, airports and port facilities.

Designate 15 percent of all new transportation revenues for mass transit, airports and ports.

Give cities and counties increased powers to tax for local transportation projects.

The changes, excluding the extra revenue with a sales tax increase to 5 percent, would produce $571.5 million in new revenue in fiscal 1988 and $6.3 billion over 10 years.