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Concerned about the declining purchasing power of gas tax revenue due to inflation, public opposition to tax increases, and improved fuel efficiency of new vehicles, the 2001 Oregon Legislature created the Road User Fee Task Force (RUFTF) to make recommendations regarding a potential replacement for the gasoline tax. This paper estimates the distributional impact of the statewide vehicle-miles traveled (VMT) fee policy proposed by the RUFTF on individuals with different incomes and residential locations. The methodology employs both vehicle ownership and type choice models and regression-based vehicle use models. This allows us to examine both short- and long-run responses from the impacted households. The measures of the distributional impact of the proposed VMT fee include changes in consumers ’ surplus, fee-collection agency revenue totals and overall welfare changes by income and location groups. The results show that the distributional effects of a 1.2 cents/mile flat VMT fee are not significant in either short or long run, suggesting that distributional concerns should not be a hindering factor in the future implementation of the proposed VMT fees.