What is Profit Sharing?
When cooperatives are profitable, they share those profits with their Members. During profitable years, City Market Members receive patronage checks based on spending their spending as a form of profit sharing.
How Does Profit Sharing Work at City Market?
Patronage Refund checks are a form of profit sharing based on a Members’ spending over the course of our fiscal year. That means that during profitable years, the more you have spent under your Member Number, the greater your Patronage Refund check is. Patronage Refund checks are mailed in early November based on your spending in our previous fiscal year (For example, November 2017 Patronage checks were based on spending from July 1, 2016 to June 30, 2017). Purchases count towards your potential Patronage Refund only when your equity is current and you give your Member Number at checkout – so be sure to renew your Membership on time and always give our cashiers your Member Number!
Do I Owe Taxes On My Patronage Refund?
You do not! The IRS allows the Patronage Refund as non-taxable income for individuals.
Where’s My Patronage Refund Check?
City Market, Onion River Co-op offered Patronage Refund checks to Members from 2009 through 2017, as a form of profit sharing in the Co-op that we own together. Because this is a profit-sharing program, we only issue Patronage Refunds in profitable years. Due to our 2017 expansion into our South End Store, we do not anticipate being profitable in the immediate future. When we return to profitability, we will recommend to our Board that we reconsider issuing Patronage Refund Checks to our Members.
While we will not be issuing Patronage Refund checks during unprofitable years, there are many other tangible benefits of Membership – Check them out!