Reviving an old thread, because I was interested in the same question. I'll have to look for the book you all have mentioned!
My short list:
Part of the reason I was drawn to tarot was because of John Crowley's novel, Little, Big. One of the narrative devices is a deck of cards that is passed down from generation to generation of the Drinkwater family. They aren't the tarot we know, for they have a different Major Arcana. The deck is also tied in with the faery world. It's a lovely novel, well worth reading.
Another of my favorite novels is Emma Bull's Bone Dance, which is set in a post-apocalyptic future and has a spiritual core that really speaks to me. There is a card reader among the main character's friends, and the spread she reads frames the plot. I always wondered if Emma Bull constructed the novel around an actual tarot spread, rather than create one in the book to fit her plot.
One last: Moonwise by Greer Ilene Gilman. Again, the cards are used as a narrative device. It's not a tarot deck, but a homemade deck of cards that the two central characters use to play a story-telling game. One is "lost" in the game, drawn into the other world. Her friend sets off to find her. It's a gorgeous novel, though many are put off by the quantity of archaic words and folkloric references scattered throughout the dreamlike prose. Out of print, but I've seen it on half.com.