Facing falling revenues, one Valley town is considering a tax on cigarettes.

Luray town officials expect revenue from the real estate tax to drop. They say that's partially because they expect real estate assessments to drop.

If approved, customers would pay an additional 15-cent tax for a pack of cigarettes.

Town officials estimate the tax would generate almost $200,000 in the first year. They estimate more than one million packs of cigarettes are sold in the town each year.

Council members have not decided if they want to direct money from this tax to specific areas or put it in the general fund.

If the town council approves the cigarette tax, it would go into effect March 1. The council is expected to take a vote on the issue in mid-December.