But then we're on to why would the state do that, unless they happen to be a state composed entirely of geolibertarians that think redistributing ground rent is the proper purpose of government? A regular government considering going through the political pain of turfing out homeowners at least wants budget to spend on their actual political priorities

(Also, giving tax money "back" to the population is surprisingly nontrivial given political complications over which people qualify to get the rebate, political and practical complications over actually getting the money, and an expected ultimate impact - positive and negative - on the net recipients)