Excluded Vehicles 430-05-45-10-20

(Revised 11/01/04 ML2941)

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The worker must first determine if a vehicle is excluded. When a vehicle is excluded, neither the fair market value nor the equity value is applied.

 

Unlicensed vehicles on an Indian Reservation that does not require tribal members to license vehicles are treated as licensed vehicles. They must be coded as UV on the VEHI screen with the appropriate TECS exclusion code under the EXT T/P column.

 

The entire value of any licensed vehicle will be excluded only if the vehicle is (the appropriate TECS codes on the VEHI screen under the EXT T/P column are listed):

  1. Used for income producing purposes such as but not limited to a taxi, truck, a fishing boat, a vehicle used for deliveries, to call on clients or customers, or required by employment. (PI)

Exception:

Vehicles are not excluded if they are used only for commuting to and from work.

  1. The household is legally prohibited from selling the vehicle for whatever reason - these vehicles are not entered into TECS.

Examples:

Court injunction or probate.

  1. Necessary for long distance travel (other than commuting) that is essential to the employment of a household member (including an ineligible alien or disqualified individual). These types of vehicles include, the vehicle of a traveling sales person (PI) or migrant farm worker following the migrant stream. (MT)

Exclusions one through three above also apply when the vehicle is not in use because of temporary unemployment.

  1. Used as the household's home. (HO)
  2. Necessary to transport a physically disabled household member who meets the definition of "disabled" (including an ineligible alien or disqualified individual) regardless of the purpose of such transportation. This exclusion is limited to one vehicle per physically disabled household member. The vehicle need not have special equipment or be used primarily by the physically disabled household member. (TR)

The individual must meet the food stamp definition of disabled and the disability must be based on a physical disability.

  1. Leased vehicle - is not entered into TECS as is not owned by the household.
  2. Necessary to carry the primary source of fuel for heating or water for home use. (WF)
  3. A vehicle is excluded as inaccessible if as a practical matter the household is unable to sell the vehicle because the sale is unlikely to produce an estimated return of not more than $1500. (IA)

Examples:

  1. A household is making payments on a 1994 sedan with a fair market value of $7,000. The household has no other vehicles. The excess fair market value ($2,350) would make the household ineligible. In this instance, the worker must determine if the vehicle is inaccessible. If the household were to net anything less than $1,500 on the vehicle if sold, the entire value of the vehicle is excluded as an inaccessible vehicle.
  2. A household has one vehicle that is not otherwise excludable with a fair market value of $6,200. The countable fair market value is $1,550. If the household has no other countable assets that combined with other countable assets exceeds the applicable asset limit for the household, the household would remain eligible for participation. In this example, the inaccessible vehicle provision was not needed to exclude the vehicle.