I was offered a position from a company in NYC. When they learned I would be working from Virginia they rescinded, citing a heavy tax burden. Can someone explain further?

To be clear, the company is still trying to figure things out, but mentioned that switching the role from full-time to contract may be the only option. What is it about Virginia's (or New York's) tax laws that would make it so financially burdensome for a NYC-based company to hire a remote FTE in Virginia?