753-4          ITEMS OF EMPLOYMENT

753-4 A.     TOOLS

Tools and light or farm machinery are exempt as personal property.  Tools required by a school as a condition of enrollment and tools required by an employer as a condition of employment are also exempt as personal property.

753-4 B.     STOCK AND INVENTORY

Stock and inventory essential to the production of  self-employment income may also be exempt.  Stock and inventory includes all items necessary to produce gross self-employment income, including fishnets, traps, motor vehicles (including fishing boats), and Limited Entry Fishing Permits.

In order to be exempt, such items must be used primarily for income producing purposes.  They must also actually be producing income.

Note:

A Limited Entry Fishing Permit that Commercial Fisheries Entry Commission (CFEC) has classified as non-transferable has no value. These permits are valid for the permit holder’s lifetime, as long as they are renewed each year, but they cannot be transferred or sold.

753-4 C.     DEFINITION OF PRODUCING INCOME

1. "Producing Income" for self-employment:

Means producing gross self-employment income (before any business deductions are given) for a person who is included in the assistance unit or a person whose net countable income, if any remains after deductions, would be deemed available to the unit.

2. "Producing Income" for seasonally self-employed persons:

Means producing income now, or produced income last season and is expected to do so next season.

3. Short-term exception:

A short-term exception may be made in unusual circumstances where the client was prevented from producing income by reasons beyond his or her control (such as illness, fisheries closure, strike, or machinery breakdown).

753-4 D.     ITEMS ON CONSIGNMENT

It is common to encounter situations in which a client carves ivory or makes other items which he or she then places for sale on consignment with one or more retail merchants.  If and when an item sells, the client then receives payment from the merchant.

There may be one or more months each year in which no sales are made.  The consignment "stock and inventory" should be disregarded during such no-income periods, as long as it is actually up for sale.

753-4 E.     STOCK AND INVENTORY FOR SALE

A similar exception may be made for regular stock and inventory not on consignment.  If the stock and inventory is actually for sale as part of a legitimate business it can be considered as an exempt resource in any month in which, for reasons beyond the control of the client, there is no gross self-employment income.