For outside ISM determinations, divide the taxes paid by the number of months in the
billing period to determine the converted monthly CMV of the third party payment (e.g.,
$1200 divided by 12 months = $100 converted monthly CMV).
Next, determine the tax period covered by the tax payment (e.g., the tax bill covers
the period January 1995 through December 1995).
Then, follow the instructions in SI 00835.360 to determine whether or not the payment of taxes is a gift, and to determine for
which months to charge the ISM.
EXAMPLE: Mrs. Jenkins, an SSI recipient, lives with her sister in a home Mrs. Jenkins owns.
In July 1995, Mrs. Jenkins reports that her brother, who has no ownership interest,
paid the property taxes in March 1995. The tax period was June 1994 through May 1995,
and the taxes amounted to $1200. The payment of the taxes by her brother is considered
a “gift” because he did not have ownership interest in the property.
The first step is to convert the $1200 payment to a monthly amount. The CR divides
$1200 by 12 (the months in the billing period) which results in a converted monthly
CMV of $100.
Because the brother's payment was a gift, the ISM is first charged in March when the
bill was paid (See SI 00835.360 for when to charge ISM from third party vendor payments). The CR determines that
Mrs. Jenkins was extended credit for the 9 elapsed months of the billing period (June
1994-February 1995). No ISM is charged for June 1994 through February 1995. The CMV
of the ISM to be charged in March is $500 (i.e., 9 months X $100 plus $100 for March,
divided by 2 because she has one roommate). The ISM is capped at the PMV for March.
The household's ISM for April and May 1995 is $100 per month (i.e., since it is not
received on credit the general rule in
SI 00835.360 applies and it is charged in the month Mrs. Jenkins has use of the item). Mrs. Jenkins'
ISM for April and May is $50 per month ($100 divided between her and her roommate).