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Vehicles (Federal Rules) - SNAP (Food Stamps)

General

This topic describes Federal Supplemental Nutrition Assistance Program (SNAP, formerly Food Stamp Program) rules concerning vehicles as resources. Note that the same regulations that established these rules also gave states the option to use other policies instead of or in addition to these rules. See the Vehicles - SNAP (Food Stamps) topic for more information about your specific State.

Federal rules for the valuation of vehicles in the SNAP (Food Stamp) program were substantially revised for the first time in several decades in late 2000. The new rules became effective January 21, 2001, and individual states were required to implement them by June 1, 2001.

There are four steps to follow when using the Federal rules to determine how much a household's vehicles count toward the SNAP (Food Stamps) resource limit.

Step 1

Determine if any of the household's cars are excludable. A vehicle is excludable if:

·        it is used primarily for income-producing purposes (such as taxi cabs),

·        it annually produces income consistent with its fair market value,

·        it is needed for long-distance employment-related travel, other than daily commuting,

·        it is used as the household's home,

·        it is needed to transport a physically handicapped household member (one car per disabled member exempt),

·        it is needed to carry fuel or water that is the household's primary source of fuel or water, or

·        the household has less than $1,500 equity in it.

Step 2

For vehicles that are not excluded under Step 1, the vehicle's fair market value (based on the used car "blue book" value) must be evaluated. If the amount is greater than $4,650, the excess may be counted toward the household's resource limit. Under this step, each vehicle is evaluated separately against the $4,650 threshold. The values of multiple vehicles are not added together.

Step 3

After determining the fair market value of cars that are not excludable under Step 1, an equity value may also have to be determined for some of these cars.

a.   Determine if the vehicle is subject to the equity test. Cars exempt from the equity test include:

·     one vehicle per adult in the household regardless of the use of the vehicle,

·     any additional vehicle a household member under age 18 drives to commute to employment or training or education.

b.   Determine the equity value of any vehicle not excluded under Step 3a. Equity is the fair market value of a car less any encumbrances (e.g., outstanding loan balances).

Step 4

Now, count the appropriate amount toward the food stamp resource limit.

a.   For each vehicle evaluated under Steps 2 and 3, count the higher of the fair market value above $4,650 (Step 2) or the equity value (Step 3).

b.   Add up the values established for each car under 4a.

c.   Add the amount determined under 4b to the value of the household's other resources to determine if the household meets the resource eligibility requirements for Food Stamps.

Additional Information

This description is based on the vehicle policy issued by USDA in final regulations on November 21, 2000 (65 Fed. Reg. 70134-70212).

Source

This topic is based on a survey originally published in 2001 by the Center for Budget and Policy Priorities and last updated in June 2008. The survey is periodically updated, and available at:
http://www.cbpp.org/7-30-01fa.htm

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