COEUR d’ALENE — The automotive industry is proving to be a key component in the engine driving Idaho’s economy.

The industry is the among the largest providers of sales tax revenue in the state, according to Idaho Automobile Dealers Association executive vice president Jim Addis.

Most recent data from the National Automobile Dealers Association show the industry generated $344 million in state sales tax in 2023 alone.

Addis, along with auto industry representatives from 12 other Western states, General Motors and Idaho lawmakers, shared their observations during a multi-day conference at The Coeur d’Alene Resort, which concluded Friday.

Addis also said that auto industry revenue has a "multiplier effect" at a local level. Auto dealer employees pay property taxes and shop at area businesses, while schools and infrastructure benefit fiscally from sales tax revenue.

U.S. Rep. Russ Fulcher concurred with Addis’s findings.

“As policy makers, we have to take that into consideration,” Fulcher said. “If the auto industry is healthy, they make a lot of others healthy.”

Though auto manufacturing is not taking place in Idaho, franchise dealerships generate over 12,000 jobs in the state, meaning the state is an “indirect beneficiary” of the industry, Fulcher also said.

Idaho House Speaker Mike Moyle explained that cuts to regulation at the legislative level have been intended to free up industry across the board.

“Some regulation is important, we all understand that,” Moyle said. “But some of it is not. The best thing the government can do is get out of the way of businesses and individuals.”

Since 2019, Idaho has cut or simplified 95% of regulations in the state, according to idaho.gov.

Legislative action has fostered “fair competition and fair markets,” Addis said.

“When we can have free, fair markets, the consumer wins,” he added.

The evolution of the auto industry has far-reaching implications, Moyle said, particularly in the energy sector.

“Demand for electric vehicles is going to continue to increase ... and we will need to provide electricity for them,” Moyle said.

Upcoming legislation will focus on nuclear energy development, including smaller modular plants, he said.

While Idaho was once a leader in nuclear energy, Fulcher added, current infrastructure is lacking because of a shift away from nuclear in recent decades.

“The promise, efficacy and cost benefit is tremendous,” Fulcher said, “we have to build the confidence and build the infrastructure.” 

    Congressman Russ Fulcher, left, and Jim Addis spoke Friday at the Western States Automotive Conference at The Coeur d'Alene Resort.