5154-8        VEHICLES

 

Most vehicles are exempt based on their use by the household. If a vehicle is not exempt, its equity value counts in the resource determination.

 

A vehicle is any passenger car or other motorized vehicle used to provide transportation of persons or goods. This includes cars, trucks, recreational vehicles (RVs), boats, snow machines, all-terrain vehicles (ATVs), motorcycles, airplanes, or other motorized vehicles.

 

5154-8 A.   EXEMPT VEHICLES

 

A motor vehicle is exempt as a resource if it is necessary and used:

 

  1. For family transportation to meet the household’s basic needs, such as getting food, medical care or other essentials. This includes vehicles used:
     

  2. To go to and from work, school, training, or a work activity such as community work service or job search;
     

  3. As the family’s home;
     

  4. To produce self-employment income (see Section 5164); or
     

  5. To transport a disabled household member, whether or not they are part of the assistance unit. "Disabled", in this section, covers both permanent and temporary disabilities. For instance, it would include disabilities caused by chemotherapy, a broken leg, and respiratory illnesses. The vehicle need not have special equipment or be used primarily for transportation of the disabled individual.

 

5154-8 B.   COUNTABLE VEHICLES

 

A vehicle that is not exempt under this section counts against the resource limit. The countable amount is the owner’s equity (fair market value minus the amount owed on the vehicle).

 

The vehicle value does not include optional equipment, nor does it include shells or campers that are mounted on the vehicle. Shells and campers are considered separately (see number 3 of this manual section).

 

5154-8 C.   VEHICLES IN REMOTE AREAS

 

Used vehicles such as boats, snow machines, and ATVs that might be salable in urban Alaska may not be salable in remote areas. This does not make such vehicles exempt from consideration as a resource, but it may result in a determination that a vehicle has little or no market value in the community.

 

Determine fair market and equity value for vehicles in remote areas based on:

 

 

If the caseworker determines that a countable vehicle is not salable in the community, the vehicle's resource value is zero.

 

5154-8 D.   JOINTLY OWNED VEHICLES

 

Jointly owned vehicles are treated like other jointly owned resources as described at MS 5152-2.

 

If the joint owner does not live with the household, has possession the vehicle, and is unwilling to sell the vehicle, it is considered an unavailable resource.

 

5154-8 E.   VERIFICATION

 

For countable vehicles, the fair market value and amount owed must be determined. Acceptable evidence of the amount owed includes a statement from the lien holder or other reasonable evidence of the current debt on the vehicle.

 

Find the fair market value of countable vehicles by using the NADA National Automobile Dealers Association Appraisal Guides on the Internet at http://www.NADAguides.com. Refer to the Administrative Procedures Manual Section 105-15 for procedures for using the NADA National Automobile Dealers Association web site. The fair market value is the base amount quoted as “Average Trade-In” or Low Retail”.

 

The fair market value of a countable vehicle may also be determined using:

 

 

If the household questions the value assigned to their vehicle, discuss with them the reason they think the vehicle is worth less and document this information in the case file. For example, they may explain that the vehicle is not running or needs significant repairs. Accept the household’s stated value unless the explanation provided is questionable.

 

If the claimed value is questionable, the household must be given the opportunity to verify the lower value. See MS 5000-4B for the definition of questionable information.

 

The case record must be documented to show how the caseworker determined the exemption or countable value of each vehicle.

 

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MC #32 (12/05)