California lawmakers approved a bill Thursday granting San Francisco the power to establish a toll and reservation system for Lombard Street. The bill still needs Gov. Gavin Newsom's signature.
The San Francisco County Transportation Authority has recommended $5 per car weekdays and $10 weekends and holidays.
Residents say the scenic street has become more like an overcrowded amusement park than a neighborhood street.
They have been calling for years for officials to address traffic jams, trash and trespassing.
Tourism officials estimate that 6,000 people daily visit the 600-foot-long (183-meter-long) street in the summer, creating lines of cars stretching for blocks.