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Virginia transportation bill signed by Gov. Bob McDonnell

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RICHMOND, Va. (AP/ABC7) - This summer, Virginia residents will see a big change in taxes on commonly used items. Gov.  Bob McDonnell signed legislation Monday, overhauling funding for transportation projects. It will be replaced with an increased sales tax.

The ceremonial signing Monday at the Capitol was for his sweeping, long-term overhaul of Virginia's system for funding repairs and upkeep of its highways.

Approval of the compromise bill came on the final day of the 2013 session of the General Assembly.

The measure replaces Virginia's 17 1/2 cents-per-gallon retail gasoline tax with a 3.5 percent wholesale tax on gasoline and a 6 percent levy on diesel fuel. It boosts statewide sales taxes from 5 percent to 5.3 percent and increases the titling tax on car sales. It also adds a $100 registration fee for fuel-sipping hybrid vehicles. It’s all in an effort to generate more than $2 billion for road construction.

The legislation also rules out proposed tolls on Interstate 95 south of Petersburg.

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