3-002.01H1 Excluded Unlicensed Vehicles

475 NAC 3-002.01H1

An unlicensed vehicle is excluded if:

1. Used as the household’s home;

2. Annually produces income consistent with its fair market value;

3. Essential to a household member’s employment such as farm equipment;

4. On an Indian reservation which does not require vehicles driven by tribal members to be licensed; or

5. One licensed or unlicensed vehicle per household may be excluded using the following policy. This exclusion is limited to only one vehicle per household. 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.

To determine the resource value of a non-excluded unlicensed vehicle, the worker must:
  1. Indicate on N-FOCUS that the vehicle is unlicensed; and
  2. Enter the fair market value of the vehicle and encumbrances, if applicable, against the vehicle.
The system will:
  1. Determine the equity value of each vehicle; and
  2. Count the amount of equity as a resource.

Examples using unlicensed vehicles:
  1. Household has an unlicensed 2000 vehicle and a licensed 1995 vehicle. The 2000 vehicle has a fair market value of $11,800. The 1995 vehicle has a FMV of $4,500. The 2000 vehicle is excluded under the $12,000 rule. The 1995 vehicle is exempted under the $4,650 disregard rule. The household has no countable resources from vehicles.
  2. Household has an unlicensed 2001 vehicle and an unlicensed 1996 vehicle. The 2001 vehicle has a fair market value of $13,000. The 1996 vehicle has a FMV of $5,000 and a loan with a balance of $5,500. The $12,000 exclusion is applied to the 2001 vehicle and $1,000 is applied to the household's resource limit. The 1996 vehicle is processed under the $4,650 disregard rule and the equity rule. The greater of the two values is used as a countable resource which would be $350 ($5,000 - $4,650 = $350). The household has countable resources of $1,350 from vehicles.

{1/3/05}