Mich. Admin. Code R 207.108 — Discounts

Rule 8. (1) Cash, trade, and quantity discounts to customers are deductible in
arriving at the net room charge which is taxable. Such discounts shall appear on the
invoices, records, and accounts of the convention hot el and be substantiated to
the satisfaction of the department.

(2) Trade and quantity discounts are usually known and available to the purchaser
at the time of the room charge and are deductible immediately on the invoice before
determining the tax.
(3) A cash discount is usually offered by the convention hotel as an inducement
for payment within a specified time and shall not be deducted by the operator of the
convention hotel until it has been given to the purchaser. Such discounts will be
allowed as a deduction on the convention hotel's return when there is sufficient
evidence in the records of the operator to indicate that such discounts have been the
regular policy of the convention hotel and have been given to the purchaser.