A bill to amend the Internal Revenue Code of 1954 to discourage interstate bootlegging of cigarettes by increasing the Federal tax on cigarettes and to provide payments to States which do not impose a special tax on cigarettes and to amend title 18, United States Code, to impose certain penalties with respect to such bootlegging.

Amends the Internal Revenue Code to impose an additional excise tax on cigarettes to be disbursed to States not imposing local cigarette taxes to the extent the taxes collected are attributable to those States. Imposes penalties for bootlegging large amounts of cigarettes and provides for the regulation of interstate cigarette dealers and transporters by the Department of the Treasury.