AI for Sales Tax Compliance Quiz

Answers and explanations appear as you take the quiz.

1. What did South Dakota v. Wayfair (2018) change?
   • It abolished state sales taxes
   • It overruled the physical-presence standard and allowed economic nexus for remote sellers
   • It created a national sales tax
   • It exempted online sellers from sales tax
2. What thresholds did the South Dakota law upheld in Wayfair use?
   • $10,000 in sales or 50 transactions
   • More than $100,000 in sales or 200 transactions
   • $1 million in sales only
   • Any single sale
3. What do marketplace facilitator laws do?
   • Ban online marketplaces
   • Shift the collection duty for platform sales to the marketplace
   • Eliminate exemption certificates
   • Set federal tax rates
4. Under the Streamlined Sales and Use Tax Agreement definition, why might a candy-like product be taxed as food?
   • It is sold online
   • It contains flour, which excludes it from the candy definition
   • It costs under one dollar
   • It is imported
5. In AI product taxability, what does the model predict, and what decides the tax treatment?
   • The model decides tax rates directly
   • The model predicts the tax code, and a separate rules engine applies each state's treatment
   • The state's website predicts the code
   • Customers choose their own tax code
6. Why does the guide recommend rooftop-level address geocoding instead of ZIP code lookup?
   • ZIP codes are secret
   • A single ZIP code can cross jurisdictions with different local rates
   • Rooftop lookups are required by federal law
   • ZIP codes change daily
7. A seller uses a sales tax automation vendor. Who remains liable for correct collection and remittance?
   • The vendor
   • The customer
   • The seller
   • The Supreme Court
8. Which item should be routed to human review in a product classification workflow?
   • A product the model has classified with very high confidence and no ambiguity
   • A near-boundary item such as a snack that may be food or candy
   • Every product regardless of confidence, forever
   • Only products priced over $1,000