The rebates were paid out based on sales only because it was a way to dodge federal taxation of the rebates. Lot's of people who paid sales tax didn't qualify and I believe they actually calculated how much sales tax you paid based upon your agi.
The real problem with Jesse was that he was immature. He couldn't handle criticism from the media and he couldn't handle the fact that there was no way the the legislature was going to agree to some of his ideas like widening the sales tax, having a unicaramel legislature, and dealing with the current deficit in advance. (the legislature refused to cut spending or admit a deficit because it was an election year so they held off. Proof that neither democrats or republicans are fiscal conservatives)