Amends Article 46 of GS Chapter 105, as follows.

Amends the amount of the tax a county may levy once it has levied the first 1¢ sales and use tax, the first 1/2¢ local sales and use tax, and the second 1/2¢ local sales and use tax, so that the applicable rate of the tax: (1) is in an increment of 1/4% and (2) is at a rate that, if levied, would not result in a total local sales and use tax rate in the county in excess of: (a) 2 1/2% if the county is authorized to levy a local sales and use tax under Part 6 of Article 43 of GS Chapter 105 or (b) 2 3/4% if the county is authorized to levy, or is located in a special district authorized to levy, a local sales and use tax under Part 2, Part 4, or Part 5 of Article 43 of GS Chapter 105. Specifies that the tax must be approved in a referendum and makes conforming changes to the ballot language.

Amends GS 105-538 by adding that a county must use the net proceeds of a tax levied under Article 46 only for one or more of the purposes for which the county may levy property tax under GS 153A-149.

Enacts new GS 105-506.3 to allow a local sale and use tax to be levied under Article 43, Local Government Sales and Use Taxes for Public Transportation, if the total sales and use tax rate in the county is not in excess of: (1) 2 1/2% if the county is authorized to levy a local sales and use tax under Part 6 of Article 43 of GS Chapter 105 or (2) 2 3/4% if the county is authorized to levy, or is located in a special district authorized to levy, a local sales and use tax under Part 2, Part 4, or Part 5 of Article 43 of GS Chapter 105.

Amends GS 105-164.3 containing definitions for Article 5, sales and use tax, by amending the definition of combined general rate to now mean the sum of: (1) the State's general rate of tax; (2) the sum of the rates of the local sales and use taxes authorized for every county in this State by Article 39 of GS Chapter 105 or SL 1967-1096, Article 40, and Article 42 of GS Chapter 105; and (3) one-half of the maximum rate of tax authorized by Article 46 of GS Chapter 105.