Enacts new Article 47 in GS Chapter 105 that authorizes governing body of the City of Asheville to levy a local sales and use tax of .25%, by adoption of a resolution after 10 days of public notice if approved by a majority of voters in a referendum as specified. Provides that adoption, levy, collection, and repeals of the tax in accordance with GS Chapter 39. Details distribution of the net proceeds. Directs proceeds of the tax to be used for local public transportation systems, as defined.

Authorizes the Secretary of Revenue to retain the Department of Revenue's cost of collecting and administering the tax at an amount of up to $300,000 from the gross proceeds for each of the first two fiscal years the City levies the tax. Requires all other costs of collection and administration to be deducted from the gross proceeds pursuant to GS 105-472.

Makes the notice and effect requirements of GS 105-466(c) applicable to the tax, except that the City is required to give the Secretary of Revenue at least six months' advance notice of a tax levied under the act (the statute requires 90 days' notice).