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Brentwood panel flags Department of Revenue processing lag that could skew 2026 tax figures
Summary
City finance staff told the Ways and Means Committee a processing backlog at the state Department of Revenue likely delayed sales tax receipts, creating a risk that 2026 totals temporarily reflect late 2025 payments; the audit remains in progress.
Michelle told the Brentwood Ways and Means Committee that consultants tracking filings reported slower processing at the Missouri Department of Revenue, which has sometimes taken 30–90 days to process returns and deposits. "It could have meant that even the DOR doesn't have the capacity to get to them to process them to then process the money," she said.
Michelle said this lag can produce a timing effect: some receipts recorded in early 2026 are for 2025 filings, which can make 2026 appear inflated versus underlying activity. She noted January sales tax was up 16% and February up 3% compared with prior periods but cautioned that modified-accrual adjustments will move qualifying January and February deposits back to 2025 where appropriate.
Alderman Goad asked whether sales tax is booked at accrual or cash; Michelle explained the city uses a cash approach for most months but performs modified accrual adjustments for January and February receipts. Committee members urged continued monthly monitoring and said multi-year forecasting (three prior years plus department input) will be important for the upcoming budget cycle.
Michelle also updated the committee on the audit timeline, saying auditors have tested expenditures and capital assets, are about 85–90% complete, are still obtaining county revenue data, and expect a draft in 15–20 days for May review with final approval expected by June.
