Joined: Mar 2008
Posts: 169
Co Op
6/23/2015 at 11:38 AM
These payments are not rebates, but patronage dividends with the amount representative of how much you spent (patronized) the Co-Op.
Each Co-Op is different and can divide their yearly patronage payments as they see fit - often dividing the amount into additional equity in the Co-Op and a cash portion. Heritage Co-Op has always done that split, whereas Westman Media Co-Op, the local cable company, until very recently, has always done 100% equity.
Canadian tax law sees Co-Op patronage as "money returned" and, if for personal, non-business purchases, is 100% non-taxable and does need to be claimed on your income tax.
If you patronage allotment is for more than $100.00 the Co-Op as a business entity must submit a 15% withholding tax to the federal government. When you (as an individual) file your income tax, you can claim that income tax and receive it back as part of any refund.