Del. Brian Crosby moved part of his IT company to Virginia as lawmakers debated the tax, then voted against it. He’s not seeking re-election. This week’s revenue numbers are reviving the argument he lost.
By Michael Phillips | MDBayNews
LEONARDTOWN — This week’s news that Maryland’s IT services tax collected 77% less than projected in its first year found a pointed local angle in St. Mary’s County’s District 29, where a Democratic delegate’s own business had already become one of the most closely watched examples in the 2025 debate over the tax, before a single dollar was ever collected.
Del. Matt Morgan, the Republican who represents District 29A, pointed to that history directly in a social media post reacting to the new figures. Referring to fellow District 29 lawmaker Brian Crosby, a Democrat who represents the neighboring 29B seat, Morgan argued the shortfall was proof of a pattern of tax increases that miss their revenue targets while pushing businesses out of the state, telling skeptical voters to “go see Delegate Brian Crosby’s business plan.”
Morgan’s post is his own political argument, not a neutral account of what happened. The underlying facts, drawn from Maryland Matters and The BayNet’s reporting at the time, are more specific than the post suggests.
What actually happened with Crosby’s business
“Crosby is a Democrat whose business was directly affected, who voted against his own party’s tax, and who is now leaving office anyway.”
Crosby, an Army veteran, owns Intact Technology, a small company with close to 50 employees that subcontracts on Defense Department IT work. In March 2025, while serving as vice chair of the House Economic Matters Committee, Crosby announced on the House floor that he was moving part of his business from Maryland to Virginia. He said he learned of the proposed 3% tax the same day the deal was struck. “I listened to the announcement in the truck,” Crosby said, according to Maryland Matters.
- Crosby publicly criticized the tax as it moved through the legislature.
- He relocated part of Intact Technology’s operations to Virginia during the debate.
- When the final bill came to a vote, Crosby was one of only two House Democrats to vote against it, according to The BayNet, which corrected an earlier report that had wrongly said he voted yes.
- He later described the Virginia move as a strategic and logistical business decision, separate from his opposition to the tax, and said his objection centered on the burden the tax would place on small and minority-owned subcontractors, according to The BayNet.
“He relocated part of Intact Technology’s operations to Virginia during the debate — then became one of only two House Democrats to vote against the final tax bill.”
The tax passed anyway, backed by the Democratic supermajority in Annapolis, and took effect July 1, 2025.
Not seeking another term
Crosby announced in a January social media post that he will not run for a third term representing District 29B, a decision first reported widely in mid-February. He cited family and his business as his focus going forward. He currently serves as the House’s deputy majority leader for the 2026 session, a leadership post that followed his years as Economic Matters vice chair.
District 29 as a whole leans Republican in its House delegation. Crosby is the only Democrat among the district’s three House seats; Matt Morgan holds 29A, and Todd Morgan holds 29C, both Republicans, and Republican Jack Bailey holds the Senate seat covering the full district.
Why this week’s numbers matter to that story
“The tax was projected to raise roughly $500 million. It brought in $112.8 million.”
The Comptroller’s Office reported this week that the tax, projected to raise roughly $500 million in its first year, actually brought in $112.8 million, a shortfall of about 77%. MDBayNews covered the statewide numbers and the broader business-community reaction, including calls from the Maryland Chamber of Commerce to repeal the tax, in a companion report, Maryland’s New Tech Tax Brought In 77% Less Than Promised.
For District 29 specifically, the new numbers give both parties something to point to. Republicans like Morgan see confirmation that the tax drove business activity out of Maryland exactly as critics warned. Crosby’s own history complicates a simple partisan read: he is a Democrat whose business was directly affected, who voted against his own party’s tax, and who is now leaving office anyway.
“Republicans see vindication. Crosby’s record makes the story harder to reduce to a simple partisan argument.”
What to Watch
- Whether Crosby comments publicly on this week’s revenue figures before he leaves office in January.
- Who the Democratic and Republican parties nominate for the open 29B seat in the June 2026 primary, and whether the tax becomes a defining issue in that race.
- Whether Matt Morgan or other Republicans push for repeal legislation when the General Assembly reconvenes.
Sources: Maryland Matters’ Feb. 16, 2026 report on Crosby’s retirement announcement; the Southern Maryland Chronicle’s Feb. 18, 2026 coverage of the same; Maryland Matters’ March 25, 2025 report on Crosby’s business relocation and floor comments; The BayNet’s April 19, 2025 report, including its correction, on Crosby’s vote against the final tax bill; Maryland General Assembly member records for Crosby and Matt Morgan; and a social media post from Del. Matt Morgan reviewed by MDBayNews this week. Statewide tax collection figures are drawn from MDBayNews’ prior reporting this week on fiscal 2026 IT tax collections.
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