It’s a simple and quite wonderful concept, a cooperative.
You own the coop based on your patronage, how much you shop. At the end of each year, 20% of the profits get returned to you based on dollars spent at the coop, your patronage. This refund is called a Patronage Dividend or a Patronage Refund. The other 80% is allocated to each Member, also in proportion to your patronage.
Much of the allocated equity will be reinvested in the coop, either by further reducing the price of food or making capital improvements. The rest will be retained as a capital reserve.
As an incorporated Sub-Chapter T Cooperative, once the Coop distributes 20% of its profits, the Coop will not pay any state or federal taxes. Also, you will not need to pay state or local taxes on your refund.