Behavior is a complex product of interactions between sensory influx arising from the environment and the neural state of the organism. Therefore, identical sensory input can elicit different behavioral responses. Research in recent years has demonstrated that perception is modulated when an organism is engaged in active behavior – suggesting that neural activity in motor pathways is one factor governing the neural state of networks engaged in sensory processing. In the current manuscript, we focus on the auditory modality and propose a mechanism by which activity in motor cortex changes the neural state in auditory cortex through global inhibition. In turn, such global inhibition reduces auditory net population activity, sharpens auditory frequency tuning curves, shifts the auditory oscillatory state and increases the signal-to-noise ratio of auditory evoked neural activity. These changes can result in either attenuated or enhanced behavioral responses depending on the environmental context. We base our model on animal and human literature and suggest that these motor-induced shifts in sensory states may explain reported phenomena and apparent discrepancies in the literature of motor-sensory interactions, such as sensory attenuation or sensory enhancement.