The tax rebate being received in 2025, for example in Virginia, is due to surplus state revenue resulting from strong economic growth and business investment in recent years. Eligible taxpayers who filed state taxes will receive rebates of up to $200 for individuals and $400 for joint filers. This rebate reflects a return of surplus government funds to taxpayers, emphasizing that tax money ultimately belongs to the people rather than the government. It is part of broader fiscal management aiming to balance funding for public priorities while also providing relief to individuals and families. Eligible taxpayers will receive their rebates by the end of October 2025 if they filed before early July.

In summary, the tax rebate is issued because of surplus government revenues and fiscal management choices to return excess funds to taxpayers in the form of rebates. This measure helps reduce tax burdens temporarily by redistributing surplus revenues back to the taxpayers who have paid taxes.