DPSS ePolicy

Revision of existing policy and/or form(s)

What changed?

Effective July 1, 2025, the maximum value allowed for non-exempt vehicles increased by 1.61 percent from $32,968 to $33,499. The system will be programmed on July 10, 2025, with the increased value of $33,499 which is applicable July 1, 2025.

Note: Changes are shown highlighted in grey throughout the document.

The following rules apply to registered and unregistered vehicles even if the vehicle is not operational:

• CalWORKs applicants/participants can retain non-exempt vehicles with an equity value of $33,499 or less. Any equity value in excess of $33,499 will be counted toward the Assistance Unit’s (AU’s) resource limit.
• CalWORKs participants must complete a CW 80, Self-Certification Form for Motor Vehicles – CalWORKs, for any vehicle(s) owned that was not previously reported during the initial Application, SAR 7, Eligibility Status Report, or Renewal (RE). This form allows a participant to self-certify the:
  
  • Exemption reason;
  • Fair Market Value (FMV) of the vehicle(s); and
    
  • Amount of encumbrances, if any.
    
• CalWORKs applicants/participants can request a vehicle exemption for any vehicle(s) that has been transferred to the applicant/participant as a gift, donation, or family transfer.

All County Letter (ACL) 13-111, dated December 31, 2013, provided changes in the vehicle property limit and evaluation, which became effective January 1, 2014. The changes included an increase in the vehicle’s property limit to $9,500 and the release of the CW 80 for applicants/participants to identify and self-certify the value of vehicles.

The CW 80 was revised via ACL 15-27, dated February 28, 2015, to exempt a vehicle from the equity value if it is used by a member of the AU under the age of 18 under certain conditions. This exemption was removed with the release of ACL 18-76, dated July 2, 2018, as Assembly Bill 74 (Chapter 21, Statutes of 2013) did not include this exemption into current law.

ACL 19-67, dated July 26, 2019, increased the maximum allowed for non-exempt vehicle equity value to $25,000 effective June 1, 2020. The change is pursuant to Senate Bill 80 (Chapter 27, Statutes of 2019).

ACL 21-38, dated April 2, 2021, increased the maximum allowed for non-exempt vehicle equity value from $25,000 to $25,483, effective July 1, 2021. The increase was adjusted in accordance with the increase of 1.93 percent reflected in the United States (U.S.) Transportation Consumer Price Index (CPI).

ACL 23-47, dated May 30, 2023, increased the maximum allowed for non-exempt vehicle equity value from $25,483 to $32,045, effective July 1, 2023. The increase was adjusted in accordance with the increase of 25.75 percent reflected in the U.S. Transportation CPI for all Urban Consumers.

ACL 24-36, dated May 31, 2024, increased the maximum allowed for non-exempt vehicle equity value from $32,045 to $32,968, effective July 1, 2024. The increase was adjusted in accordance with the increase of 2.88 percent reflected in the U.S. Transportation CPI for all Urban Consumers.

ACL 25-37, dated May 30, 2025, increased the maximum allowed for non-exempt vehicle equity value from $32,968 to $33,499, effective July 1, 2025. The increase was adjusted in accordance with the increase of 1.61 percent reflected in the U.S. Transportation CPI for all Urban Consumers.

Encumbrances

For purposes of determining the equity value of the AU’s motor vehicle(s), the encumbrance is the amount that the AU is obligated to pay for the vehicle, or the amount owed on the vehicle.

Fees that must be paid in order to have the vehicle’s ownership transferred, for overdue registration, or other changes, are not considered encumbrances when determining equity value.

Equity Value

Equity is the amount of the FMV of the vehicle less encumbrances.

U.S. Transportation CPI

The $33,499 equity threshold will be adjusted upward annually on July 1st of every year, based on an increase, if any, in the U.S. Transportation CPI for all Urban Consumers.

CalWORKs Program will continue to notify staff when future adjustments are made to the equity threshold.

Leased Vehicle

A lease/purchase option vehicle is not regarded as a resource until a transfer of ownership occurs. A vehicle reported as a leased vehicle is considered a vehicle exemption, and not property. The CW 80 must still be completed.

CW 80

The CW 80 must be completed when a vehicle is reported:

• During the application process;
  
• On a SAR 7; and
• At RE.

Note: The CW 80 (02/18) reflects the revised guidance regarding a vehicle no longer being exempt for a member of the AU under the age of 18, while the SAWS 2 PLUS, Application for CalFresh, Cash Aid, and/or Medi-Cal/Health Care Programs Appendix E Vehicle Information and Self Certification of Equity Value, does not.

CW 80 Completion

The CW 80 is completed by the participant to self-certify the vehicle(s):

• Exemption reason;
• FMV; and
• Amount of encumbrances, if any.

Note: When a vehicle is being reported at Application or RE, staff must ensure the applicant/participant completes the CW 80, instead of the Appendix E that is embedded within the SAWS 2 PLUS.

SAWS 2 PLUS Appendix E

At no time should staff use Appendix E (a version of the CW 80) within the SAWS 2 PLUS as the verbiage is not current.

Instead, staff must obtain the CW 80 from the applicant/participant.

Vehicle Exemptions

The entire value of any licensed/registered/unregistered vehicle is exempt if the vehicle meets any exemptions.

The applicant/participant will not need to declare the FMV of the vehicle or amount owed for the vehicle when one of the following criteria or exemption reasons is reported:

• It is primarily used for income-producing purposes;
• It annually produces income that is consistent with its FMV, even if used on a seasonal basis;
• It is necessary for long distance travel, other than daily commuting, that is essential to the employment of a family member;
  
• It is used as a family’s residence;
• It is necessary to transport a physically-disabled family member, including an excluded disabled family member, regardless of the purpose of the transportation;
• It would be exempted under any of the above exemptions, but the vehicle is not used because of temporary unemployment;
• It is used to carry fuel to heat the home, when the transported fuel or water is the primary source of fuel or water for the family; or
• It is received as part of a gift, donation, or family transfer.
  • The applicant/participant must provide verification from the Department of Motor Vehicles (DMV) of the gift, donation, or family transfer, verification includes a copy of the original title transfer or Bill of Sale documentation from the DMV.

The vehicle exemption no longer applies for children under the age of 18 who use the vehicle to commute to and from training or education which is preparatory to employment or to seek employment. The vehicle that was previously exempted must now be evaluated to determine if the family is eligible for another exemption and/or meets the resource limit.

The CW 80 is needed to verify the FMV and encumbrance on a vehicle. In addition, the applicant/participant will not need to declare the FMV or amount owed for the vehicle when an exemption is declared.

The CW 80 is also sufficient to verify exemption reasons with the exception of the exemption due to “gift, donation, or family transfer.”

Verifications and Acceptable Documents 

Amount of encumbrance, if any

• CW 80

FMV of the vehicle(s)

• CW 80

Exemption reason (other than vehicle transfer as a gift, donation, or family transfer)

• CW 80

Exemption Verification when vehicle was transferred to the applicant/ participant as a gift, donation, or family transfer

• Verification from the DMV: Copy of the original title transfer or Bill of Sale documentation from the DMV indicating the vehicle was a gift, donation, or family transfer.
  
  When verification is not provided, the applicant/participant must indicate the FMV and any encumbrances of the vehicle in order to determine the excess equity value that is countable towards the AU’s resource limit.
  
  Note: The CW 80 nor SAWS 2 PLUS Appendix E are acceptable documents when the applicant/participant reports that a vehicle was a gift, donation, or family transfer.