My presumption has been precisely what you said is normally the case - that I would need to report the rebate by reducing the amount of my federal property tax deduction. It's just super frustrating that no one seems to definitively know through sourced info whether that's actually the case and that the city doesn't seem interested in clarifying this. TurboTax says my refund would increase by about $30-35 if I don't have to report the rebate, so it's not a trivial difference.
(To clarify, this is not a reimbursement for a prior year. The rebate check came just a few days after the mayor signed the bill for the program in August.)
