VEHICLES SR 00-31, 07/00 (FSM-A) |
Automobiles and other motorized vehicles such as trucks, motorboats, snowmobiles, and motorcycles. Part 411, Farm Machinery, Livestock, Tools, and Equipment, addresses farm vehicles.
Determining Ownership
*Inspect the vehicle’s title:
• If the title has "and" linking an assistance group member with a nonmember as co-owners, exclude the vehicle’s value when all the following conditions are met:
- the nonmember does not live in the household;
- the household member does not have possession or use of the vehicle; and
- the household member cannot sell the vehicle due to the co-owner’s refusal to provide the required signature necessary for sale.
• If the title has "or" linking a group and a nongroup member, see Jointly Owned Resources.
Determining the Vehicle Value
Count or exclude the value of vehicles owned by assistance group members according to policy below.
Fair market value is defined as the "trade-in value" as specified in the National Automobile Dealers Association (N.A.D.A.) Official Used Car Guide, also known as the "Blue Book":
• fair market value is not increased because of special equipment for the handicapped, low mileage, or optional equipment;
• if the client states that the fair market value in the Blue Book does not apply because of, for instance, body damage, the client must present verification of the true fair market value of the vehicle from an auto dealer or an individual who is engaged in a vehicle sales or service business; and
• if a vehicle is custom made, too old, or too new to be listed in the Blue Book, the client must verify its fair market value by
- obtaining an appraisal from an automobile dealer or an individual who is engaged in a vehicle sales or service business;
- submitting a tax assessment on the vehicle indicating its value; or
- submitting a newspaper advertisement which indicates the amount for which like vehicles are being sold.
Equity Value is defined as the fair market value of the vehicle, minus any encumbrances. Determine the equity value by subtracting any encumbrances, such as the principal owed on a loan, from the fair market value. Use any documentation that reasonably establishes the amount of equity owned by the client.
Exclude any vehicles owned by assistance group members if the vehicle or vehicles cannot be sold for significant return as defined in Part 407, TREATMENT OF RESOURCES. For vehicles not excluded under the "significant return" provisions, refer to the headings below for treatment of vehicles owned by household members.
TANF 12 MONTH EXTENDED MEDICAL ASSISTANCE HOUSEHOLDS
Treatment: Exclude 1 vehicle per adult EMA assistance group member from the food stamp resource test.
OTHER HOUSEHOLDS (See also FSM 409, ASSISTANCE PAYMENTS (NHEP/FAP, OAA, ANB, APTD, SSI):
• Primary Registered Vehicle
Treatment: Exclude 1 registered vehicle if fair market value is under $4,650. Count the value beyond $4,650, regardless of equity position.
Example
A non-TANF household owns a car with a fair market value of $5,500. The $850 in excess of $4,650 is counted toward the household’s resources even though the household still owes the bank $5,000 on the car.
• Additional Registered Vehicles Customarily Used for Work or Training
Treatment: Exclude additional vehicles customarily used to transport individuals for work or training—even during temporary periods of unemployment. The fair market value must be under $4,650 and there must be more than one driver in the household who is a member or excluded member.
Treatment: Count the value above $4,650 regardless of equity position.
• Additional Registered Vehicles Not Used for Work or Training
Treatment: Count additional registered vehicles, other than exempted vehicles and vehicles not used for work or training, as follows:
1. Determine the vehicle’s fair market value in excess of $4,650.
2. Compute the vehicle’s equity value.
3. Count the fair market value in excess of $4650, or the equity value, whichever is greater.
Example
A household has an extra car not used for work, training, transporting a disabled individual, nor is it lived in.
1. The fair market value is $5,000. To date the household has paid $1,000 in principal on the car.
2. The fair market value of the vehicle in excess of $4,650 is $350.
3. The vehicle’s equity value is $1,000.
4. Count the $1,000 equity value because it is greater than the $350 fair market value in excess of $4,650.
• Unregistered Vehicles
Vehicles of any type, regardless of use or condition, that do not have a valid state registration and therefore may not be legally operated.
Treatment: Count the equity value unless otherwise exempted by policy (e.g., used as the household’s home).
• Income-Producing Vehicles
An income-producing vehicle meets at least one of the criteria below:
- 50% of the vehicle’s use is for income - producing purposes;
- the vehicle annually produces income consistent with its fair market value, even if only used seasonally; or
- the vehicle is necessary for long distance travel — not daily commuting — which is essential to the employment of a household member or excluded member, such as a traveling salesperson.
Treatment: Excluded resource
• Vehicles Used as Household’s Home
Treatment: Excluded resource.
• Leased Vehicles
Vehicles on which there is a signed lease agreement with a leasing agent and the leasing agent retains title to the vehicle.
Treatment: Excluded resource for the duration of the lease agreement.
Exception: if the household member has the option to purchase the vehicle at the end of the lease agreement and exercises this option, treat the value of vehicle at the time of purchase according to the appropriate policy for vehicles owned by household members.
• Recreational Vehicles
Recreational vehicles are motorized vehicles, including motorboats, snowmobiles, motorcycles, recreational campers, private airplanes, etc.
Treatment: Count motorized recreational vehicles in the following way:
1. Compute the vehicle’s fair market value in excess of $4,650.
2. Compute the vehicle’s equity value.
3. Count the fair market value in excess of $4650 or the equity value, whichever is greater.
Example
A household has an airplane with a fair market value of $15,050. To date, the household has paid $10,000 in principal on the plane.
- The fair market value of the vehicle in excess of $4,650 is $10,400.
- The plane’s equity value is $10,000.
- Count the $10,400 fair market value in excess of $4650 because it is greater than the $10,000 equity value.
Exception: Treat recreational vehicles that qualify as another vehicle type according to the appropriate type (As income producing, the household’s home, etc.).
Example
- A recreational camper is used as the household’s home. Exclude the vehicle.
• Vehicles for the Physically Disabled
Vehicles used to transport a physically disabled household member are excluded when certain conditions are met. If the physical disability is not self-evident, require verification.
There are 2 components to the vehicle exclusion: the individual’s disability, and the vehicle’s use.
Disability Criteria
- Disability is determined using work registration criteria (see Part 809) or based on receipt of state, federal, or local government disability payments (see Section 229.03).
- The disability can be temporary or permanent and need not render the individual unfit for work.
Vehicle’s Use
- The vehicle is designated by the case head and must meet the specific needs of the disabled individual. The case head may designate such a vehicle for each disabled member or excluded member; and
- The vehicle is used to transport a physically disabled household member or excluded member. However, the vehicle need not be used primarily for the disabled individual, nor be registered in their name.
Treatment: Excluded Resource
• Vehicles on Indian Reservations
Certain Indian reservations do not require registration of vehicles used only on the reservation.
Treatment: Count or exclude based on use, as above, regardless of registration status.
• Vehicles Needed to Carry Fuel or Water
A vehicle necessary to carry the primary source of fuel for heating or water for home use for households if it is anticipated that the transported fuel or water will be the household’s primary source during the certification period.
Exception: This exclusion must not be given because of a temporary interruption of other utilities such as for nonpayment of heat or water bills.
Treatment: Excluded Resource
• Property for Maintenance of Income-Producing Vehicle or Vehicle for the Disabled
Property directly related to the use or maintenance of an income-producing vehicle or a vehicle used to transport a physically disabled individual.
Example
A truck driver requires a separate piece of property big enough to park his 18 wheeler truck. Only that portion of his property directly related to the maintenance and use of the truck is exempt as a resource.
Treatment: Excluded Resource