The real reason I infer that Hip is not being squeezed to collect sales tax by various US state agencies is that unlike eBay
, Hip's gross sales is insignificant to eBay
Hipstamp may indeed fall below the calendar-year gross sales threshold (note that it's sales, not state sales tax collected), most of which are $100,000, but given some of the sales puffery that has gone on, I would question whether Hipstamp may have crossed that threshold in certain states with high-population centers, e.g., New York, California, Illinois, etc.
The bigger problem for Hipstamp is that similar to the Federal 1099-K reporting threshold, certain states have adopted an annual number-of-transactions-into-the-state prong to the test, and unlike the Federal test, it's an *OR* test, not an *AND* test. So for example, instead of having to meet BOTH $100,000 in sales to the state AND 200 transactions, if your marketplace handles $100,000 in sales to the state OR 200 transactions (regardless of aggregate dollar amount), the collection requirement is triggered.https://www.avalara.com/us/en/learn...or-laws.html
Alaska: $100,000 in prior calendar year OR 200 transactions
Arkansas: $100,000 in prior calendar year OR 200 transactions
Illinois: $100,000 OR 200 transactions (I can all but guarantee that Hipstamp has triggered this collection requirement)
Indiana: $100,000 OR 200 transactions
I did not drill down into the actual legislation in each state to read fine print, caveats, etc.; this is based on the above-linked reference.