This is opposite of the NY/NYC commuter tax. That taxes people who do not live in the city for working in the city. This taxes income earned outside the state for the portion going to counties while rebating the state portion.
I hate to point this out, but the NYC commuter tax was abolished in 1999.
NY state still taxes commuters from other states who work within New York State, but they usually get full credit on the income tax in their home state.