(A) This rule
describes exclusions when real or personal property is essential to an
individual's means of self-support.
(B) Definition.
(1) "Basic daily living needs", for the
purpose of this rule, means any food, basic clothing, basic shelter, and any
medical care that are not provided by medicaid. Items for entertainment or
leisure are not basic daily living needs.
(2) "Maximum allowable equity" means an
individual's equity in income-producing property, up to a maximum of six
thousand dollars.
(C)
Categories of property essential to self-support.
(1) Property used in a trade or business,
government permits that represent authority granted by a government agency to
engage in an income-producing activity, or property used by an individual as an
employee for work.
(a) Is excluded as a
resource regardless of value or rate of return.
(b) Government permits includes any permit,
license, or similiar instrument issued by a federal, state, or local government
agency.
(c) Personal property used
by an employee for work
includes
include farm machinery, tools, safety equipment,
uniforms, etc.
(2)
Nonbusiness real or personal property used to produce goods or services
essential to basic daily living needs.
(a) Up
to six thousand dollars of the equity value is excluded, regardless of rate of
return.
(b) Any portion of the
property's equity value in excess of six thousand dollars is a countable
resource.
(c) Nonbusiness property
used to produce goods or services include
s
growing produce or livestock solely for personal consumption in the
individual's household or
performing
perform activities essential to the production of
food solely for home consumption.
(3) Nonbusiness income-producing property.
(a) Up to six thousand dollars of the equity
value is excluded as a resource if the property produces a net annual return
equal to at least six per cent of the excluded equity.
(b) Any portion of the property's equity
value in excess of six thousand dollars is a countable resource.
(c) If the property produces less than a six
per cent return, the exclusion can only apply if the lower return is for
reasons beyond the individual's control and there is a reasonable expectation
that the property will again produce a six per cent return. Otherwise, none of
the equity value is excluded under this section.
(d) If the earnings decline was for reasons
beyond the individual's control, up to twenty-four months
are to
can be
allowed for the property to resume producing a six per cent return. The
twenty-four month period begins with the first day of the tax year following
the
tax year
one in which the return dropped to below six per
cent.
(e) If the tax return shows
that the
property
activity has operated at a loss for the two most
recent years or longer, the property cannot be excluded unless the individual
submits current receipts and records to show that
the
property
it currently is producing a
six per cent return.
(f) If an
individual owns more than one piece of income-producing property, the six per
cent return requirement applies individually to each property and the six
thousand dollar equity value limit applies to the total equity value of all the
properties meeting the six per cent return requirement.
(g) If all properties meet the six per cent
return requirement
test but the total equity value exceeds six
thousand dollars, that portion of the total equity value in excess of six
thousand dollars is a countable resource.
(D) For any of the exclusions to apply, the
property
is to
must be in current use in the type of activity that
qualifies it as essential.
(E)
Property not in current use. If the property is not in current use, it must be
for reasons beyond the individual's control and there must be a reasonable
expectation that the use will resume within twelve months of last use.
(1) Property not in current use
is to
can be
excluded for twelve months as essential for self-support if
the property
it has been in use and there is reasonable
expectation that the use will resume. The individual
is
to
must provide a signed statement of
last date of use, reason the property is not in use, and when the individual
expects to resume the self-support activity.
(2) If an individual alleges that
self-support property is not in current use because of a disabling condition of
the individual, the individual
is to
must provide a signed statement of the nature of
the condition, the date the individual ceased the selfsupport activity, and
when the individual intends to resume activity to receive up to an additional
twelve months.
(3) If the
individual does not intend to resume the self-support activity, the property is
a countable resource in the month after the month of last use.
(4) If, after property has been excluded
because an individual intends to resume self-support activity, the individual
decides not to resume such activity, the exclusion ceases to apply as of the
date of the change of intent. The property is a resource in the following
month.
(F) Individual
responsibilities. The individual
is to
shall:
(1) Provide
a copy of the tax return for the tax year prior to application or renewal
to be used to determine the net income earned for
the individual
if the property is used in a
trade or business in order for the administrative agency to determine the net
income earned by the individual.
from the
income-producing property.
(2) Provide pertinent documents and a signed
statement if the individual alleges owning a government license, permit, or
other property that represents government authority to engage in an
income-producing activity, and has value as a resource. The statement
is to
shall
include:
(a) The type of license, permit
, or other property;
and
(b)
The name of the issuing agency, if appropriate;
and
(c)
Whether the law requires such license, permit, or property for engaging in the
income-producing activity at issue; and
(d) How the license, permit, or other
property is being used; or
(e) Why
the license, permit, or other property
it is not being used.
(3) Provide a signed statement if the
individual alleges owning items used in his or her work as an employee. The
statement
is to
shall include:
(a)
The name, address, and telephone number of the employer;
and
(b) A general description of the items;
and
(c) A general description of the individual's
duties; and
(d) Whether the items
are currently being used.
(4)
Provide a signed
statement if the individual alleges owning property used to produce goods or
services essential to basic daily living needs. The statement is to
include:
(a)
A
description of the property; and
(b)
How the property
is used; and
(c)
An estimate of the property's fair market value and any
encumbrances on the property.
(G) Administrative agency responsibilities.
The administrative agency
is to
shall:
(1)
Determine whether the property qualifies under one of the three categories
identified in paragraph (C) of this rule if the individual asserts his or her
property is essential for
self-support
self-suppport.
(2)
Determine whether
to exclude equity in property that provides either a product or a service that
supplies basic daily living needs for the individual as described in paragraph
(C)(2) of this rule.
(a)
If the property does provide basic daily living needs
for the individual, then the individual's equity up to a maximum of six
thousand dollars is not to be counted as a resource. Any equity in excess of
six thousand dollars is to be counted as a resource.
(b)
If the property
does not provide basic daily living needs for the individual, then the entire
equity is a countable resource.
(2)
(3) Determine whether
to exclude equity in nonbusiness income-producing property described in
paragraph (C)(3) of this rule as follows:
(a)
Determine the individual's maximum allowable equity in the property.
(b)
Multiply
Multiple
the individual's maximum allowable equity by six per cent.
(c) Establish the net annual income the
property produces for the individual.
(i) If
the income to the individual is equal to or greater than the six per cent
calculated in paragraph (G)
(3)
(2)(b) of this
rule, then the maximum allowable equity is not counted as a resource.
(ii) If the income to the individual is less
than the six per cent calculated in paragraph (G)
(3)
(2)
(b) of this rule, then the individual's entire equity
is counted as an available resource.
(d) If there is more than one potentially
excluded property, the six per cent return requirement applies individually to
each property and the six thousand dollars equity value limit applies to the
total equity value of all the properties meeting the six per cent return
requirement.
(3) Determine whether to exclude
equity in property that provides either a product or a service that supplies
basic daily living needs for the individual.
(a) If the property does provide
basic daily living needs for the individual, then the individual's equity up to
a maximum of six thousand dollars shall not be counted as a resource. Any
equity in excess of six thousand dollars shall be counted as a
resource.
(b) If the property does not provide
basic daily living needs for the individual, then the entire equity is a
countable resource.
(4) Apply only the provision that is most
beneficial to the individual if the individual's property falls under more than
one of the categories in paragraph (C) of this rule.
(5) Request any other documentation necessary
to fully and adequately distinguish between the income from the
income-producing property, and income from other sources.
(6) Consider the individual's entire equity
as a countable resource if the individual fails to cooperate with providing the
appropriate documentation.
Notes
Ohio Admin. Code
5160:1-3-05.19
Effective:
6/1/2021
Five Year Review (FYR) Dates:
2/25/2021 and
06/01/2026
Promulgated
Under:
111.15
Statutory Authority:
5160.02,
5163.02
Rule Amplifies:
5160.02,
5163.02
Prior Effective Dates: 09/03/1977, 02/01/1979, 10/01/1979,
01/03/1980, 10/01/1995, 11/07/2002, 11/02/2014,
08/01/2016