In 2014, a state issued checks to homeowners as a rebate of property taxes. Funds for the rebate were available because of unexpectedly high state tax revenues due to a new law that legalized gambling in the state. In December 2014, Edward received a $290 rebate check from the state. In January 2015, he returned the check to the governor because he thought it was improper for the state to spend the money in this manner. Edward, a dedicated opponent of gambling and other "games of chance," attached a letter to the governor indicating his desire to have the $290 spent on a campaign to educate youth about the financial and nonfinancial dangers of gambling. List some of the tax issues relevant to Edward's situation.