Arkansas Administrative Code › Agency 016 - DEPARTMENT OF HUMAN SERVICES › Division 20 - Division of County Operations › Rule 016.20.96-025 - Food Stamp Basis of Issuance Tables Countable Value of Licensed Vehicles

Current through Register Vol. 49, No. 6, June, 2024
4820
Definition of a Licensed Vehicle
A licensed vehicle is a vehicle
currently
licensed
by
a state to operate on public roads and highways. Vehicles
				which bear a temporary dealer's permit are considered licensed.
4821
Determining the
			 Countable Resource Value of Licensed Vehicles
The resource value assigned to all licensed vehicles for
				purposes of determining food stamp eligibility will be either:
1.
The fair market value less a
			 $4,650 limit; or
2.
The
			 equity value.
*** Fair market value less $4,650 limit will be assigned
				to the following licensed vehicles.
1.
The family
			 car.
This is the vehicle used as the household's primary source of
			 transportation. If the household has more than one vehicle, the
household designates which vehicle
i_s the
family car
.
NOTE: A household may own only one vehicle and be
				ineligible for food stamps if the fair market value less the $4,650 limit
				exceeds the resource limits. For example, if a household without an aged member
				owns one vehicle and that vehicle's fair market value is $7,000, the household
				is ineligible.
***
($7,000 - $4,650 * $2,350)
2.
Cars used for
			 transportation
£p_
work
. This
			 includes aJJ. vehicles necessary for household members to accept or continue
			 employment or use for transportation to a school or other site for training or
			 education preparatory to employment. (This does not include vehicles used by
			 high school students for transportation to school.) Also included are ail
			 vehicles used by household members to comply
with a Project SUCCESS requirement. See FSC 34Q0.
				Vehicles used for transportation to work do not lose their exempt status during
				temporary periods of unemployment.
Fair market value is the average trade-in value of the
				vehicle as listed in the most recent "NADA Book" available in the county office
				with the following exceptions:
1.
The vehicle is too new or too old to
			 appear in the "NADA Book"; or
2.
The value is not listed in the "NADA
			 Book" for another reason; or
3.
The household disputes the "NADA
			 Book" value and presents conclusive proof that the current "NADA Book" value is
			 inaccurate.
NOTE: Do not consider the value of special or optional
				equipment or low mileage when determining the average trade-in value of a
				vehicle.
-
New "NADA Books" are provided to all county offices every
				six months. When the vehicle is too new to appear in the "NADA Book", the
				current average trade-in value can be determined by contacting a local car
				dealer. When establishing the value of new vehicles, keep in mind that most new
				vehicles decrease substantially in value when purchased since the vehicle is
				now considered "used". Therefore, information such as contracts for purchase
				may be inaccurate.
When the vehicle is too old to appear in the "NADA Book",
				the household's statement of value may be accepted if the statement is not
				questionable. To determine if the statement is questionable, consider the age
				and make of the vehicle. For example, luxury cars such as Cadillacs, Mercedes,
				and Porsches do not lose value as quickly as other cars. A four-wheel drive
				vehicle will usually retain a high value also. Antique vehicles may have a high
				resale value if such vehicles have been properly maintained or have been
				restored.
The household has a right to dispute the average trade-in
				value of a vehicle as stated in the "NADA Book" if:
1.
The vehicle has been damaged in a
			 wreck or through other means;
2.
The vehicle is inoperable due to
			 motor failure or other major malfunction; or
3.
The vehicle is a model which is
			 generally unpopular and/or subject to malfunction making the vehicle difficult
			 to resell.
It is the household's responsibility to provide
				conclusive proof of the vehicle's current fair market value. The vehicle's
				current value may be substantiated by statements from dealers or newspaper ads.
				Statements from reputable repair shops verifying motor failures or other major
				malfunctions or police reports verifying wrecked vehicles may be accepted as
				proof of the current condition. Other proof may be accepted if it is conclusive
				in the caseworker's judgment.
If the documentation submitted by the household is
				inconclusive or questionable, additional documentation may be requested. Also,
				the caseworker may re-contact collateral sources such as dealers to
				determine
how the value was assigned to the vehicle. Before
				contacting the dealer, the caseworker may wish to consult publications similar
				to the "NADA Book" or may check newspaper ads to determine the value of similar
				vehicles.
In such situations the caseworker must always provide
				documentation as instructed below.
1.
jrfhy the
documentation
			 provided
i$_
considered questionable
or
inconclusive
- e.g. was the value stated by a dealer
			 substantially less than the NADA book value? Was any reason given by the dealer
			 for this difference in value? Is the reason plausible?
2.
What the household was
			 instructed
%o
do
			 £o
clear
up.
the questionable
			 documentation
. (The household should be issued an DCO-206 which
			 gives this information. A copy of the-. DCO-206 may serve as
			 documentation.)
3.
How
the caseworker finally arrived
at
the fair
			 market value
of
the vehicle which
i_s_
			 the
subject
of the
dispute
.
			 Include all contacts made by the caseworker or information obtained by the
			 caseworker as well as any information provided by the household.
NOTE: When a newspaper ad is used to establish the fair
				market value of a vehicle, either a dated copy of the ad or a dated original
				must be attached to the case record.
When a family car or a vehicle used for transportation to
				work has a fair *** market value of less than $4,650 no
resource
				value
will be shown in the food stamp budget. Resource value is
				determined for each vehicle individually.
Example: A household declares two vehicles, a 1984 Ford
				with a fair
market value of $2,000 (used as the family car) and a
				1993
Chevrolet with a fair market value of $5,000 (used
				for
transportation to work). To determine the resource value,
				the
***
$4,650 limit will be applied to each
				vehicle.
***
Ford: $2,000 - $4,650 «= 0
				Countable Resource Value
***
Chevrolet: $5,000 - $4,650 - $350
				Countable Resource Value
When a licensed vehicle is not used as the family car,
				for transportation to work, for education preparatory to work, or to
				participate in Project SUCCESS Program, count lh§
greater
£f the vehicle's fair market value over
				*** $4,650 or the equity value. The equity value of a vehicle is the fair
				market value less encumbrances.
Example: A household has an Escort GT which is not used
				either as the family car or for work related purposes. The current average
				trade-in value in the "NADA Book" is $6,050. The household owes $5,000 on this
				car. The current value is calculated as follows:
$6,050 - average trade-in value -
				$6,050
-5,000
-
				encumbrance
-4.650
- limit
$1,050 - equity value
$1,400 - fair market
				value
$
1.400
is the
greater
of the two
values
and
				will be added to the household's other countable
				resources.