Fair Market Value Versus Equity Value 430-05-45-10-35

(Revised 01/01/04 ML2893)

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When a vehicle is assigned both a fair market value in excess of $4,650 and an equity value, only the greater of the two amounts is counted as an asset.  If a non-exempt vehicle has no excess fair market value, then only the equity value is counted.

 

First the system will apply $4,650 to all vehicles that are not coded as totally excluded vehicles.

 

The system looks for all vehicles that are coded with partial exemptions and applies any excess over $4,650 to the asset limit. The equity value does not apply to partially exempt vehicles.

Example:

1. Household consists of a single individual who owns three vehicles.

Vehicle A:      $5,600   Fair Market Value - $950 (AM)

  - 4,650   ($1,000 equity value)

    $ 950

Vehicle B:      $4,900   Fair Market Value - $250

  - 4,650   ($200 equity value)

    $ 250

Vehicle C:      $4,750   Fair Market Value - $100

  - 4,650   ($400 equity value)

    $ 100

Vehicle A has a partial exemption code of (AM) and $950 is applied toward the household asset limit. The $1,000 equity value does not apply to this vehicle.

 

The system will compare Vehicle B's excess fair market value of $250 and the equity value of $200 and apply the greater of the two to the asset limit ($250).

 

The system will compare Vehicle C's excess fair market value of $100 and the equity value of $400 and apply the greater of the two to the asset limit ($400).

 

The system will apply $1,600 to the asset limit as follows: $950 for Vehicle A, $250 for Vehicle B, and $400 for Vehicle C.

 

2. Household consists of a single parent with two small children. The household is receiving TANF and has two vehicles.

Vehicle A:       $10,000   Fair Market Value - $5,350

- 4,650   ($900 equity value)

$ 5,350

Vehicle B:         $4,900   Fair Market Value - $250

- 4,650   ($1,000 equity value)

   $ 250

As this household is in receipt of TANF, the household is exempt from the asset test.

 

If this were not a categorically eligible household, the system applies the excess fair market value of $5,350 to the asset limit from Vehicle A. The system will compare Vehicle B’s excess fair market value of $250 and the equity value of $1,000 and apply the greater of the two to the asset limit ($1,000).

 

The system applies $6,350 to the asset limit as follows: $5,350 for Vehicle A and $1,000 for Vehicle B. This case would not be eligible based on excess assets.