Arkansas Administrative Code › Agency 016 - DEPARTMENT OF HUMAN SERVICES › Division 20 - Division of County Operations › Rule 016.20.16-002 - Medical Services Policy E-523

Current through Register Vol. 49, No. 6, June, 2024
E-500
Resources - AABD
opinion. However, if there are questions or issues that cannot
				be handled at the county level, submit the request to DAAS for an
				opinion.
E-523
Personal
			 Property Exclusions
MS Manual 08/01/16
Listed below are resource items that qualify for special
				exclusion from resources when specific conditions are met. Resource items which
				do not meet conditions for exclusion will be included with countable resources.
				When an excludable resource item has a value in excess of the exclusion
				limitation, the excess value will be included with countable resources.
1.
Automobile
The term "automobile", as used here, applies to any vehicle
				which is used to provide necessary transportation, such as passenger cars,
				trucks, boats, and special vehicles (e.g., motorcycles, snowmobiles, animals,
				animal-drawn vehicles, etc.).
One automobile per household is excluded regardless of value if
				it is used for transportation by the individual or a member of his
				household.
Note:
The case worker
				will assume that the automobile is used for transportation unless there is
				evidence to the contrary.
When an individual or household owns more than one automobile,
				the exclusion will be applied in the manner most advantageous to the
				individual. The exclusion will be given to the automobile with the highest
				equity value. The equity value of any other automobile owned by the individual
				or member of the household is a resource when:
a. It is owned by the individual or couple,
			 and
b. The automobile cannot be
			 excluded under any other policy provision.
When the above general exclusion has been given to an
				automobile, a second automobile can be excluded only if it is essential to the
				means of self-support of an individual or couple. If a second vehicle is
				normally used in the operation of a trade or business and if the first excluded
				vehicle cannot also fulfill the self-support function, then the second vehicle
				may be excluded from counting toward the resource limitation.
The following vehicles do not meet the definition of an
				automobile and therefore the general exclusion cannot be applied:
a. A vehicle that has been
			 "junked";
b. A vehicle that is used
			 only as a recreational vehicle (e.g., a boat used on weekends for pleasure).
The equity value of such a vehicle will be considered a
				resource. The personal effects exclusion does not apply to such
				vehicles.
The equity value of all nonexcludable automobiles will be
				included with countable resources.
Determination of Current Market Value for a
				Non-Excluded Automobile
- The determination of value for foreign
				and domestic passenger cars will be based on use of the "Trade-In" value in
				"Fair" condition as verified by one of the following free web sites:
*
www.kbb.com
(Kelley
				Blue Book)
*
www.edmonds.com
*
www.nada.com
(Used
				for motorcycles, boats, RVs)
*
www.collectorcarmarket.com
(Used for vehicles too old to list on KBB or NADA)
When the Trade In value is not available, a comparable value
				(i.e., wholesale or loan value) may be used. The caseworker will print a copy
				of the web page showing the vehicle value and the copy will be scanned in the
				electronic case file.
Fair market value is the average trade-in value of the vehicle
				as listed on the selected web site unless the individual disputes the value and
				presents conclusive proof that the information obtained from the web site is
				inaccurate.
T
Note:
The value of
				special or optional equipment or low mileage will not be considered when
				determining the average trade-in value of the vehicle.
The caseworker will determine the average trade-in or wholesale
				value for the auto as listed on one of the above approved websites. When a
				non-excluded vehicle is too new to appear on the approved web sites, the
				caseworker may determine the current average trade-in value by contacting a
				local car dealer or by consulting a recent newspaper ad for used cars of the
				same make, model and year. A copy of the ad should be scanned into the
				electronic case record. Information obtained from contracts for purchase may be
				inaccurate because vehicles decrease in value substantially once they become
				"used".
An individual may indicate that for some reason such as body
				damage, high mileage, inoperability due to motor failure or other major
				malfunction, a vehicle is in less than average condition. An individual is
				allowed to contest the website's value of the vehicle when its depreciated
				condition makes its value "less than average". The caseworker may accept
				statements from reputable repair shops to verify high mileage, motor failures
				or other major malfunctions. Police reports or insurance documents may be
				accepted as proof of the current condition of a vehicle if it has been wrecked.
				Other proof may be accepted if it is conclusive in the caseworker's
				judgment.
If the value of the auto is not material to the eligibility
				determination (i.e., it is excluded or its countable resource value does not
				affect eligibility when combined with other countable resources), no further
				determination of exact value is necessary.
The value of an unexcluded automobile of obvious worth such as
				a Jaguar, Mercedes-Benz, Rolls Royce, Cadillac, Lincoln, Corvette, antique
				auto, or customized auto will be determined even when it is too old to be
				listed on kbb.com or nada.com. The value of these vehicles may be verified by a
				search on collectorcarmarket.com or by the use of the tax assessment method or
				by contact with a knowledgeable source. Knowledgeable sources include:
				automobile dealers, truck dealers or auto insurance companies. The tax
				assessment method of determining value consists of multiplying the county
				personal property tax assessment value of the vehicle by five.
EXAMPLE:
The county
				personal property tax value of a 1973 Lincoln Town Car is $200. Multiply $200
				by five to obtain the current resource value of the vehicle. ($200 X 5 =
				$1,000) The value of the vehicle is $1,000. This amount will be regarded as a
				resource to the individual if the vehicle cannot be excluded.
When contacting a knowledgeable source, an estimate of the
				wholesale value will be requested. In all value determinations, it is essential
				to obtain a complete and accurate description of the vehicle being evaluated.
				Document the case narrative as to determined values and the means used to make
				the value determinations (including the name and address of dealers used in
				knowledgeable source contact). All documentation used to determine the value of
				the vehicle must be scanned and indexed in the electronic case file.
Applicant Disagrees with Determined
				Value
- If the applicant disagrees with the value determined for a
				non-excluded automobile which is material to the case (affects eligibility), he
				will be afforded the opportunity to provide two knowledgeable source statements
				to establish a different value. These appraisals will be at the applicant's own
				expense. It should be explained to the applicant that the agency is not bound
				to honor the appraisals; however, the agency will recheck any provided
				appraisals for accuracy and, if they are accurate, establish a value based on
				the appraisals.