A bill to amend section 5701(a)(2) of the Internal Revenue Code of 1954 so as to change the bracket tax on cigars to an ad valorem tax.

Revises the Internal Revenue Code in order to change the braket tax on cigars to an ad valorem tax. States that the tax on cigars weighing more than three pounds per thousand shall be eight and one-half percent of the wholesale price but not more than $20 per thousand.

Defines wholesale price as manufacturer's suggested delivered price.

Provides that records of manufacturers shall be available for inspection by any internal revenue officer during business hours.