Last year, GVTC introduced the Member Dividend Program (MDP) to show our appreciation and commitment to our members. It was a big initiative that we believe our customers deserve and will benefit from for many years. In response to inquiries about recent IRS Form 1099-DIVs sent out in January to those opted into MDP, we want to explain this program and help resolve any confusion customers may have.
In June of 2018, GVTC introduced the Member Dividend Program for interested members. As a participant in this program, you receive a dividend on your monthly bill, reducing your payments by 20%. Funding for the program comes from other operational parts of the business which have seen great success. Because GVTC values its members, it was decided to pass those funds along to you. However, in order to transfer funds from one part of the business to another, the distribution must be done in the form of dividends per IRS regulations. Those dividends are thus taxable by the IRS, requiring GVTC to send our members who opt into the program a 1099-DIV Form. Be sure to keep an eye out for letters in the mail or official GVTC emails that may contain important information regarding your member dividend.
To learn more about this program, visit gvtc.com/memberdividend today for useful FAQs.