A new state law that was touted as a way to stimulate the local economy seems to have unknown implications for the local government.

On Monday, Hall County officials discussed the new law, which will exempt local manufacturers from paying sales tax on energy they use making products in Georgia.

The law will take effect gradually, cutting the tax that manufacturers pay on energy use by 25 percent over the next four years.

Locally, the new law will undercut revenues from the local option sales tax and special purpose local option sales tax, which voters approved to fund certain county projects.

To recuperate the lost revenue, local governments have an option of imposing a 2 percent excise tax on manufacturers’ energy use, according to the law.

The Hall board has until Dec. 31 to make that decision, according to a memo presented to the board.

But Hall County Finance Director Vickie Neikirk told county officials she hasn’t yet been able to quantify what that lost revenue will be for Hall County or projects that are set to be paid for with those revenues, saying she’s called officials with the state, with energy companies and a local government lobbying group looking for answers.

Commissioner Craig Lutz is against the 2 percent excise tax, which Commissioner Billy Powell said “kind of defeats the purpose” of the new state law.

Commissioner Scott Gibbs called the new law an unfunded mandate, or a state action that has left local officials picking up the tab.

Commissioners are supposed to discuss the issue further at their meeting Thursday. Commission Chairman Tom Oliver told Neikirk to find out more before the 6 p.m. meeting.

“I thought the idea of having this tax exemption was to bring business to Georgia, so I don’t see a reason to try to penalize business at the local level,” Lutz said. “I can pretty much tell you how I’m going to vote.”