Failing to renew a business license with City Hall may soon hit Libby merchants in the pocketbook.

Business owners have long been required to file the paperwork with city officials on an annual basis. But many — as much as 25 percent of all business license holders — do not, to the consternation of city staff.

At the behest of the city clerk’s office, city councilors voted unanimously to move toward adding teeth to the ordinance during their Dec. 2 meeting. The amended ordinance gives business license holders 30 days to renew the paperwork or face a late fine.

If 60 days pass without a merchant taking action, the permit will lapse and the business owner must pay to obtain a new license, under the new language.

The cost to renew is $60 and due each year on Jan. 1. A new license costs $90.

“This came about as a request from city staff, specifically the clerk, because we as a city send out business renewals every year and the staff struggles to get everybody to renew them on a regular basis,” said City Councilor Kristin Smith, who introduced the proposal.

The amount of the late fee remains under discussion. Smith said city council removed specific fees as they related to businesses last year in an effort to give officials more flexibility.

“We wanted to create language in the ordinance that grants the city the ability to add fees,” she said. “So this is language that says there will be a fee if you are late and it gives a grace period with the proposed language.”

Were the amendment adopted, city councilors could then set the fees, Smith said.

Mayor Brent Teske also directed city staff to investigate whether businesses with a state license could circumvent the local process.

City councilors unanimously backed the amendment, setting the stage for a second reading at their next meeting. No members of the public spoke on the proposal.