VEHICLES SR 97-03, 02/97 (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.
One method of determining ownership involves inspection of the vehicle’s title. If it has "and" linking an assistance group member with a nonmember as co-owners, do not count the equity value. If the title has "or" linking a group and a nongroup member, see Jointly Owned Resources.
Determine fair market value by looking up average wholesale value in the Maclean Hunter Market Reports’ Automobile Redbook. Fair market value is not increased because of special equipment for the handicapped, low mileage, or optional equipment. The individual may claim that the fair market value in the book does not apply because of, for instance, body damage. The individual must show verification from a reliable source, like an auto dealer.
Household Vehicle
TANF Households:
Treatment: Exclude 1 vehicle per adult household member for TANF financial assistance and Extended Medical Assistance households with food stamps.
Non-TANF Households:
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 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 resource even though the household still owes the bank $5,000 on the car.
• Additional Registered Work Vehicles
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 as a member or excluded member.
Treatment: Count the value above $4,650 regardless of equity position.
• Additional Registered Vehicles Not Used for Work
Treatment: Count additional registered vehicles other than exempted vehicles and not used for work or training as follows:
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 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. The fair market value is $5,000. To date the household has paid $1,000 in principal on the car.
The fair market value of the vehicle in excess of $4,650 is $350.
The vehicle’s equity value is $1,000.
Count the $1,000 equity value because it is greater than the $350 fair market value in excess of $4,650.
• Junk Vehicles
Junk vehicles are defined as any of the following:
- vehicles used only to supply parts for the individual’s main vehicle.
- vehicles that are too dilapidated to be reasonably repaired for sale or use.
- vehicles which can be sold only for scrap or parts.
Treatment: Count the equity value.
• Income-Producing Vehicles
An income-producing vehicle meets all 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.
- 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: Totally exclude any vehicle used as the household’s home.
• Recreational Vehicles
Recreational vehicles are motorized vehicles, including motorboats, snowmobiles, motorcycles, recreational campers, 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 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 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.
Examples:
- As income producing, the household’s home, etc.
- A recreational camper is used as the household’s home. Exclude the vehicle.
• Vehicles for the Physically Disabled
Vehicles are considered to be used to transport the physically disabled when they meet all the criteria below:
- disability is determined using work registration criteria,
- the individual’s disability can be temporary or permanent and need not render the individual unfit for work,
- if the physical disability is not self-evident, require verification,
- 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
• 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