N.Y.’s Out-of-State Taxpayer Money Is Suddenly Up for Grabs

They’re friends, for now.

Governors from New York, New Jersey, Connecticut and Pennsylvania have in recent weeks banded together as part of a regional initiative to coordinate reopening schools and businesses shuttered by the coronavirus outbreak.

But with states and cities facing the worst fiscal crisis in decades, a little-noticed provision in New York’s tax law could leave billions of dollars in tax revenue up for grabs -- putting those amicable relations to the test.

It’s spelled out in Section 132.18 (a) of the New York tax code. It says anyone who works out of an office in New York, ...