Page 2

Use the average trade-in value as the vehicle’s current fair market value (FMV). EQUITY VALUE: The vehicle’s equity value is counted toward the resource limit. Equity value is determined by deducting the amount owed (liens/ encumbrances) from the fair market value. KNOWLEDGEABLE SOURCE: Valuations from a knowledgeable source, such as the county assessor or a car dealer, are needed for the following vehicles: 1. A new vehicle; 2. A vehicle where the stated value is questionable; 3. The owner does not agree with the established FMV; 4. A vehicle is considered an antique/classic or is custom built. EXCLUDED VEHICLES: The following vehicles are excluded: 1. Inaccessible vehicles; 2. One vehicle being used as a home; 3. Vehicles used primarily to produce income; e.g., taxi, semi-truck, fishing boat; 4. Vehicles previously used for self-employment (e.g., logging truck); that are no longer income producing because the client is no longer engaged in that business. The exclusion is only allowed if the individual intends to use the vehicle for self-employment within one year from the date the self-employment business was terminated. 5. Family Medically Needy: One vehicle with the highest equity value. 6. ABD: One vehicle is totally excluded regardless of value if it is used to transport the client or a household member. a. If more than one vehicle meets the ‘used for transportation criteria’, the vehicle with the highest equity value is excluded. The remaining vehicles’ equity values are countable resources. b. The equity values of any vehicles not used to transport the client or a household member are countable resources. SELF- EMPLOYMENT, INCOME PRODUCING & REQUIRED FOR EMPLOYMENT: Vehicles necessary for self-employment are exempt under provisions of “Property/Equipment Necessary for Employment or Self-employment” located in CMA 402-1. If self-employment ceases, the vehicles must be reevaluated. When self-employment stops temporarily the vehicles and other self-employment equipment may continue to be exempt for 12 months, as long as the client intends to return to the self- employment business.