The Honolulu City Council passed a bill Wednesday allowing properties worth $1 million or more to be taxed at a higher rate.
Mayor Kirk Caldwell proposed the idea and is expected to sign the bill.
Caldwell says the proposal will impact 5,676 properties on Oahu bringing in $10 million.
But, that's not enough to stem a projected $156 million budget deficit in the coming fiscal year.
The Caldwell administration is also looking at increasing fees for certain permits and services, which could raise $500,000 to $1 million in the next fiscal year.
Councilman Stanley Chang is advocating stimulating job and economic growth which leads to more people working and more taxpayers.