Economic nexus
Economic nexus is the rule that a business with no physical presence in a state can still owe that state's sales tax once its sales into the state pass a set threshold.
Thresholds are set state by state and can change; Texas and Arizona each publish their own.[1],[2] A dealer who ships watches to buyers in many states can cross several thresholds without noticing.
Track your sales by destination state, and check each state's current threshold rather than assuming one figure applies everywhere.
Related terms
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Where this comes up
Pages on this site that use the term.
- Watch dealing in Pennsylvania: precious metals, second-hand watches, and taxCompliance guide
- Watch dealing in Nevada: licensing, records, and taxCompliance guide
- Watch dealing in Georgia: what's confirmed, and what isn'tCompliance guide
- Watch dealing in New Jersey: licensing, records, and taxCompliance guide
- Watch dealing in Ohio: the precious metals licence, records, and taxCompliance guide
- What's specific to ColumbusCompliance guide
Learn the trade, not just the word
Plain-English guides to buying, pricing and selling watches as a business. Free, and written to be used at the counter.
Sources
- Texas Comptroller — Remote Sellers ($500,000 economic-nexus safe harbor since 2019) — retrieved 2026-09-21
- Arizona Department of Revenue - Economic Threshold (out-of-state sellers). House Bill 2757 introduced an economic; dollar-based nexus standard for businesses with NO PHYSICAL PRESENCE in Arizona. Economic nexus is established if the thresholds were met IN THE PREVIOUS CALENDAR YEAR OR ARE MET IN THE CURRENT YEAR. FOR A MARKETPLACE FACILITATOR: Arizona gross sales (before any deductions) of MORE THAN $100;000. FOR A REMOTE SELLER: Arizona gross sales (before any deductions) of $200;000 in 2019; $150;000 in 2020; and $100;000 IN 2021 AND BEYOND. Things to note: SALES MADE BY REMOTE SELLERS OR MARKETPLACE SELLERS THROUGH A MARKETPLACE FACILITATOR ARE NOT INCLUDED IN THE REMOTE SELLER'S THRESHOLD CALCULATION; and Arizona TPT due on those sales is reported and remitted BY THE MARKETPLACE FACILITATOR. Sales made by a remote seller DIRECTLY into Arizona (not through a marketplace) are reported by the remote seller; who must be licensed and collect once the threshold is met. Thresholds are calculated INCLUDING any income generated by an AFFILIATED PARTY; meaning a person or company with more than 5 percent ownership in the other party or related through a third person or group holding an ownership interest — retrieved 2026-09-23