Section R. 207.108 - DiscountsRule 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 hotel 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.Mich. Admin. Code R. 207.108