Sounds like the Kansas City region that is bisected into KS and MO, with both states offering tax incentives for business to move. Some business flip flop locations every few years. It's the border war all over again. I live in KS and work in MO.
Another weird example is the border between Washington and Oregon. Washington has sales tax, but no income tax; Oregon has income tax, but no sales tax. So if you live and work in Vancouver, WA, but shop across the river in Portland, OR (it's literally just the river separating these two), you can dodge either tax.
(Technically, if you go shopping to Portland from Vancouver, you're supposed to pay a use tax on those goods. But there's no practical way to enforce it, and few people are even aware of it.)
One of the biggest drivers of economic inequality between the states is their business strategy. New York, California? They build new businesses. Kentucky and Louisiana and Kansas? Try to lure old businesses to move. The former strategy is obviously superior, hence the resentment the latter states hold.
I have to file both MO and KS returns, and also pay KC, MO 1% city earnings tax. I have to over withhold on MO, then (normally) with that refund turn around and pay KS. Though with Brownbacks tax cuts I am now getting couple $100 returned. File ASAP with MO as those last to file are last in line for refunds. If the state is out of money, like it was a few years ago, I didn't get my refund until August.
One of the only pluses is being able to get in-state tuition for some MO schools; not that I will send my kids there. They have two choices, and they both start with a K.
http://www.npr.org/2016/05/05/476844402/jobs-tug-of-war-kans...