3-002.01G2 Excluded Licensed Vehicles

475 NAC 3-002.01G2

Any licensed vehicle is an excluded resource if the vehicle meets one of the following conditions:

1. The vehicle is used for income-producing purposes such as taxi; truck; vehicle used for deliveries, to call on clients or customers, or required by the terms of employment.

2. The vehicle is annually producing income consistent with its fair market value, even if it is used only seasonally.

3. The vehicle is necessary for long distance travel that is essential to the employment of a household member (or household member[s] whose resources are being considered as available to the household), such as a vehicle belonging to a traveling salesperson or a migrant farm worker following the workstream. This exemption does not include vehicles used for daily commuting.

Note: Exclusions 1 through 3 continue to apply when the vehicle is not in use because of temporary unemployment, e.g., when a taxi driver is ill and cannot work.

4. The vehicle is used as the household's home.

5. The vehicle is needed to transport a physically disabled household member (or household member[s] whose resources are being considered as available to the household) for any reason. The vehicle does not have to be specially equipped for this purpose. This exclusion is limited to one vehicle for each physically disabled household member.

6. The vehicle is necessary to carry the primary source of fuel for heating or water for home use.

7. The vehicle has been used in self-employed farming by a household member for a period of one year after the household member ceases to be self-employed in farming.

Information on excluded resources of an individual who recently quit farming is located at 475 NAC 3-002.01C #27 "Excluded Resources".

8. The sale of the vehicle and all related sale costs would return to the household $1500 or less.

9. After vehicle exclusions numbers 1 through 8 have been processed for each household vehicle, one licensed or unlicensed vehicle per household may be excluded using the following policy. If the vehicle has a fair market value of:

 a. $12,000 or less, the total value of the vehicle is excluded; or

 b. More than $12,000, the amount over $12,000 is counted toward the household’s resource limit.

The vehicle with the greatest fair market value is processed through the $12,000 rule. The $12,000 rule is limited to one vehicle per household.

Example of a vehicle not excluded under the $12,000 rule.
Household has a licensed camper/trailer which has to be pulled behind a car, van, or truck. The value of the camper/trailer is $10,500 and the client has a balance of $8,059 on the loan. The camper/trailer is not a motor vehicle but a recreational vehicle. The camper/trailer cannot be given the $12,000 exclusion, A vehicle of this type can be considered for the $1500 exclusion.

The worker must accept the statement of the household regarding vehicles qualifying for an exclusion unless questionable.

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