Mich. Admin. Code R. 207.108 – Discounts. | Midpage
Rule 207.108
Mich. Admin. Code R. 207.108
Discounts.
(By authority conferred on the revenue division of the department of treasury by section 3 of Act No. 122 of the Public Acts of 1941, as amended, and sections 5 and 16 of Act No. 106 of the Public Acts of 1985, being SS205.3, 207.625, and 207.636 of the Michigan Compiled Laws)Customer Service Bureau
(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.