Tenn. Comp. R. & Regs. 1240-01-04-.10 - TREATMENT OF VEHICLES

(1) Food Stamps Only. If a household has only one licensed vehicle and the fair market value of that vehicle is $4,650 or less, such vehicle is exempt. However, if the value exceeds $4,650 or if the household has more than one vehicle, the following must be determined:

(a) Totally Exempt Vehicles.

1. The entire value of any licensed vehicle shall be exempt if:

(i) The vehicle is used primarily (over 50 percent of the time the vehicle is used) for income producing purposes (such as, but not limited to, a taxi, tractor, or fishing boat).

(ii) The vehicle annually produces income consistent with the prevailing rate of return of similarly used vehicles in the area, even if used only on a seasonal basis.

(iii) The vehicle is necessary for long distance travel other than daily commuting that is essential to the employment of a household member (or ineligible alien or disqualified person whose resources are being considered available to the household). For example, the vehicle of a traveling salesperson or a migrant farm worker following the work stream.

(iv) The vehicle used is used as the household's home and, therefore, excluded under 1240-01-04-.05(l) of this section.

(v) The vehicle is necessary to transport a physically disabled household member (or ineligible alien or disqualified person whose resources are being considered available to the household) regardless of the purpose of such transportation (limited to one vehicle per physically disabled person). A vehicle necessary to transport a physically disabled person need not have special equipment or be used primarily by the physically disabled person.

(vi) Any other vehicle used to transport household members (or an ineligible alien or disqualified household member whose resources are being considered available to the household) to and from employment or to and from training or education which is preparatory to employment in compliance with the job search criteria. A vehicle customarily used to commute to and from employment shall be covered by this equity exclusion during temporary periods of unemployment. The equity value of licensed vehicles not covered by this exclusion, and of unlicensed vehicles not excluded shall be attributed toward the household's resource level.

2. The exclusion in parts (i) through (v) above will apply when the vehicle is not in use because of temporary unemployment such as when a taxi driver is ill and cannot work or when a fishing boat is frozen and cannot be used.

3. Property, real or personal, is excludable to the extent that it is directly related to the maintenance or use of a vehicle that is excluded because it is income producing or necessary to transport a physically disabled person (refer to 1. above). Only that portion of real property determined necessary for the maintenance or use of the vehicle is excludable.

(b) Family Vehicle. One licensed vehicle, in addition to those exempted in 1240-01-04-.10(1)(a), is exempt if the fair market value is $4,650 or less. If the fair market value is more than $4,650, the amount exceeding $4,650 is considered a resource.

(c) Vehicle for Employment/Training. Any other licensed vehicles are exempt if they are used to transport household members to and from employment or to and from training or education which is preparatory to employment, or to seek employment in compliance with the job search criteria and if the fair market value of each vehicle is $4,650 or less. If the fair market value is more than $4,650, the amount exceeding $4,650 is considered a resource. A vehicle customarily used to commute to and from employment shall be covered by this provision during temporary periods of unemployment.

(d) Other Vehicles. For all other licensed vehicles, count the fair market value over $4,650 or the equity, whichever is higher.

(2) AFDC Only.

(a) Exempt - The equity, up to $1,500, of one licensed vehicle per AFDC aid group is exempt.

(b) Non-Exempt - Equity value over $1,500, of one licensed vehicle, and equity value of all other vehicles owned by the aid group or responsible relative in the home will be counted as part of the aid group's resources.

(c) One unlicensed vehicle on those Indian Reservations which do not require vehicles driven by tribal members to be licensed, shall be exempt up to $1,500 as a resource.

(3) Procedures To Be Followed in Treatment of Vehicles.

(a) Food Stamps Only. Once ownership of vehicles has been determined, then a decision must be made as to whether a vehicle is totally exempted, or the fair market value in excess of $4,650 is counted, or the equity is counted. Ownership would be established only when questionable.

1. If a vehicle is totally exempted in accordance with 1240-01-04-.10(1)(a), no value is counted as a resource.

2. A licensed vehicle used as a "family car" or for employment/training will be individually evaluated and the fair market value in excess of $4,650 shall be counted as a resource. The value of two or more vehicles shall not be added together in order to reach a total fair market value in excess of $4,650.

3. Licensed vehicles other than those cited in 1 and 2 above will be assigned both a fair market value and an equity value in excess of $4,650 or the equity value will be considered as a resource. Equity is the fair market value less any encumbrances in effect at the time of determination of eligibility (redetermination or recertification).

4. Unlicensed vehicles, unless exempt as necessary for self-employment or as income producing, shall be evaluated for equity. Also, licensed vehicles not producing income and not otherwise exempt, will be evaluated for equity value. Equity value of these vehicles will be counted as resource.

5. Unlicensed vehicles on those Indian Reservations that do not require vehicles driven by tribal members to be licensed, shall be totally exempt as a resource. Vehicles which are not driven by tribal members will be considered as a non-liquid resource.

(4) Reserved for future use.

Notes

Tenn. Comp. R. & Regs. 1240-01-04-.10

Original rule filed August 15, 1980; effective September 29, 1980. Amendment filed December 3, 1980; effective January 19, 1981. Repeal and new rule filed December 10, 1981; effective January 25, 1982. Amendment filed August 17, 1982; effective September 16, 1982. Amendment filed August 5, 1986; effective November 29, 1986. Amendment filed November 6, 1987; effective February 28, 1988. Amendment filed April 4, 1997; effective June 18, 1997.

Authority: T.C.A. §§ 4-5-202, 71-1-105, 71-3-157, 71-3-158; PL 104-193; 7 CFR 273.8.