PRUDENTIAL TAX FREE MONEY FUND INC, N-30D, 2000-03-09

PRUDENTIAL TAX FREE MONEY FUND INC
N-30D, 2000-03-09

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<PAGE>

(LOGO)

Annual Report
December 31, 1999

Prudential
Tax-Free Money Fund, Inc.

(LOGO)

<PAGE>

A Message from the Fund's President February 3, 2000
(PHOTO)

Dear Shareholder,
Yields on municipal money market securities fluctuated widely
during 1999, buffeted by a periodic imbalance in the
supply of, and demand for, these securities, as well as
the Federal Reserve's effort to slow U.S. economic growth
by repeatedly increasing a key short-term interest rate.
Prudential's Money Market Sector team worked to anticipate
these changes in U.S. monetary policy, and acted quickly
to identify and take advantage of good investment
opportunities. As a result, Prudential Tax-Free Money
Fund maintained a $1 net asset value per share and
provided a competitive tax-exempt return in 1999.

The following report takes a closer look at developments
in the municipal money market during 1999, and explains
how the Fund was positioned accordingly.

High-quality investments to help reduce risk
Having a conservative, high-quality investment alternative,
such as a money market fund, made good sense for most
investors amid the highly volatile conditions in financial
markets during 1999. Indeed, most investors should have a
money market fund. For any of life's unexpected
events, it is comforting to have quick access to your
money and an investment vehicle that provides safety
of principal and liquidity.

Thanks for your continued confidence in Prudential mutual funds.

Sincerely,

John R. Strangfeld
PresidentPrudential Tax-Free Money Fund, Inc.

<PAGE>

Performance Review

(PHOTO) (PHOTO)

Portfolio managers Joseph Tully (Money Market
[Sector] Team Leader) and Richard S. Lynes

Investment Goals and Style
Prudential Tax-Free Money Fund seeks the highest level
of current income that is exempt from federal income
taxes, consistent with liquidity and the preservation
of capital. The Fund invests in a diversified portfolio
of high-quality, short-term municipal bonds issued by state
and local governments, territories and possessions of
the United States, and by the District of Columbia.
Maturities can range from one day to a maximum of 13
months. We purchase only securities rated in one of
the two highest rating categories by at least two major
rating agencies or, if not rated, deemed to be of
equivalent quality by our credit research staff.
There can be no assurance that the Fund will achieve
its investment objective.

Coping with a supply/demand imbalance
Participants in the municipal money market had to
contend with two major trends throughout 1999--a
dwindling supply of eligible securities and the Federal
Reserve's repeated efforts to curb U.S. economic growth
and avoid higher inflation. Of the two, the risk posed by
the shortage of municipal money market securities was of
greater concern to us. $36.9 billion in municipal notes were
issued in 1999. This total was above the $34.8 billion sold
in 1998, but was still well below the $46.3
billion issued in 1997. Meanwhile, assets in tax-free money
market funds soared $14.83 billion, or 8.0%, in 1999,
according to IBC Financial Data, Inc.

Strategically speaking, we aimed to avoid having to
invest large amounts of the Fund's money during times
when strong demand and a dearth of municipal money market
securities drove yields on these securities lower (and
their prices higher). Therefore, we moved quickly to
take advantage of good buying opportunities, such as those that
arose during the tax season of 1999.

Tax-season buys enhanced the Fund's yield
In late April and early May 1999, portfolio managers (including
us) sold municipal money market securities to satisfy shareholder
liquidity needs that occurred as cash was withdrawn from mutual
funds to pay taxes. Amid this flurry of sales, securities
cheapened. We were able to purchase attractively priced,
insured municipal bonds maturing in six months to one year
as an alternative to the more conventional
tax-exempt money market securities. These insured, short-term
municipal bonds also provided solid yields to compensate for
the fact that they are typically issued in smaller-sized
blocks. Most portfolio managers prefer to buy larger blocks of bonds
because they are easier to sell. But owning smaller- and
moderate-sized blocks of insured short-term bonds worked
well for us because we plan to hold them until maturity.

FOMC tried to curb U.S. economic growth
As the spring of 1999 continued, municipal money market yields
climbed even further in anticipation of an increase in the
federal funds rate, which is the rate U.S. banks charge each
other for overnight loans. The Federal Open Market Committee
(FOMC) had recently released a statement indicating it was
leaning toward increasing this rate to slow U.S. economic
growth and prevent a build-up in inflation. The FOMC tries
to restrain inflation because it hurts nearly every one, but
particularly those on fixed

<PAGE>

incomes whose buying power declines if their incomes are not adjusted for
the increase in prices.

Bridging over the "July effect"
We took advantage of the continued rise in municipal money
market yields from mid-May through June 1999 by purchasing
securities maturing in six months to one year. In hindsight,
the Fund would have derived greater benefit if we had invested
more money in June. At that time, yields were higher because
many state and local governments issued tax-exempt notes as
their budgets were set at their fiscal year ends.

Nevertheless, our purchases helped the Fund bridge over
the seasonal drop in municipal money market yields that
occurred in early July, known as the "July effect." Yields
declined as the supply of securities shrank because investors
raced to reinvest money received from coupon payments and
maturing bonds. The imbalance of supply and demand was
strong enough to push yields lower in early July even
though the FOMC had just hiked the federal funds rate
by a quarter of a percentage point to 5.00% on June 30, 1999.

<TABLE>
Performance at a Glance
<CAPTION>
Fund Facts As of 12/31/99
7-Day Net Asset Weighted Avg. Net Assets
Current Yield* Value (NAV) Maturity (WAM) (Millions)
<S> <C> <C> <C> <C>
Prudential Tax-Free Money Fund, Inc. 3.48% $1.00 67 Days $180
IBC Financial Data Tax-Free
Money Fund (SB & GP) Avg.** 3.68% $1.00 44 Days N/A
</TABLE>

<TABLE>
Taxable Equivalent Yield* As of 12/31/99
<CAPTION>
@31% @36% @39.6%
<S> <C> <C> <C>
Prudential Tax-Free Money Fund, Inc. 5.04% 5.44% 5.76%
IBC Financial Data Tax-Free
Money Fund (SB & GP) Avg.** 5.33% 5.75% 6.09%
</TABLE>

Note: Yields will fluctuate from time to time, and past
performance is not indicative of future results. An investment
in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although
the Fund seeks to preserve the value of your investment at $1.00
per share, it is possible to lose money by investing in the Fund.

*Some investors may be subject to the federal alternative minimum tax (AMT).

** International Business Communications (IBC) Financial Data
reports a seven-day current yield, NAV, and WAM on Mondays.
This is the data of all funds in the IBC Tax-Free Money Fund
(Stock Broker (SB) & General Purpose (GP)) Average category
as of December 27, 1999, the closest date to the end
of our reporting period.

Tax-Free Money Fund Yield Comparison
(GRAPH)

1
<PAGE>

Review Cont'd.

August brought an increased supply of newly issued municipal
money market securities and a second change in monetary policy
that lifted the federal funds rate to 5.25%. Both developments
helped push municipal money market yields higher, which created
many attractive buying opportunities. We purchased one-year
notes of Franklin, Wisconsin School District, as well as
tax-exempt commercial paper. These purchases helped to
lengthen the Fund's weighted average maturity (WAM),
which is a measurement tool that determines a portfolio's
sensitivity to changes in the level of interest rates.

A difficult choice
The Fund's WAM remained longer than that of its competition
throughout the rest of 1999. Having a longer WAM in October
and early November reduced the Fund's buying opportunities
because it meant we had less money to invest in higher-yielding
securities that became available after the federal funds rate
was increased to 5.50% on November 16, 1999. But we stuck with
this strategy through December because the longer WAM would help
insulate the Fund from the next major seasonal decline in municipal
money market yields that typically occurs at the beginning of
the new year. (It is known as the "January effect.")

In December, we also purchased very short-term securities
to enable the Fund to accommodate the normal year-end
shareholder liquidity needs and any additional withdrawals
that might occur out of concern that computers could
malfunction when their internal dates switched from
1999 to 2000. As it turned out, financial markets did
not experience any major computer problems as the year
changed, and few glitches arose elsewhere. What did
emerge in the final few days of 1999 were attractively
priced, floating-rate securities that offered yields one
to two percentage points higher than normal. Purchasing
these securities also enhanced the Fund's yield.

Looking Ahead
We expect the FOMC to raise the federal funds rate
on several occasions in 2000. Because of the U.S.
presidential election in November, the changes in
monetary policy will probably be front-loaded in the
first half of the year. We believe tax-exempt money
market yields will generally follow the federal funds
rate higher, albeit at a slower pace than yields in
the taxable money market.

Weighted Average Maturity Compared to the Average
Tax-Free Money Fund
(GRAPH)

<PAGE>
Portfolio of Investments as
of December 31, 1999 PRUDENTIAL TAX-FREE MONEY FUND, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Moody's Principal
Rating Interest Maturity Amount Value
Description(a) (Unaudited) Rate Date (000) (Note 1)
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------
Alabama--0.4%
Homewood Educ. Bldg. Auth., Samford Univ., F.R.D.D., Ser.
1999 VMIG1 4.80% 1/03/00 $ 800 $ 800,000
- ------------------------------------------------------------------------------------------------------------------------------
Arizona--4.7%
Salt River Proj. Agricultural Impvt. & Pwr., T.E.C.P., Ser.
80 P-1 3.85 2/10/00 8,500 8,500,000
- ------------------------------------------------------------------------------------------------------------------------------
Arkansas--1.7%
Arkansas Hosp. Equip. Fin. Auth., AHA Pooled Fin. Prog.,
F.R.W.D. Ser. 98A A-1+* 5.60 1/05/00 3,000 3,000,000
- ------------------------------------------------------------------------------------------------------------------------------
Colorado--0.1%
Thornton Colorado Sales & Use Tax Rev., Ser. 99 Aaa 4.00 3/01/00 250 250,198
- ------------------------------------------------------------------------------------------------------------------------------
District of Columbia--3.5%
Dist. of Columbia, G.O. Var. Rate, F.R.D.D.,
Ser. 92A-1 VMIG1 5.15 1/03/00 1,200 1,200,000
Ser. 92A-2 VMIG1 5.15 1/03/00 3,100 3,100,000
Ser. 92A-3 VMIG1 5.15 1/03/00 2,000 2,000,000
------------
6,300,000
- ------------------------------------------------------------------------------------------------------------------------------
Florida--4.6%
Jacksonville Elec. Auth. Rev., Muni. Sec. Trust, F.R.W.D.,
Ser. SGA17 A-1+* 5.85 1/05/00 5,000 5,000,000
Orange & Pasco Cntys. Hlth. Facs. Auth., Adventist Hlth. Sys.
Sunbelt, F.R.W.D., Ser. 98171 A-1* 5.71 1/06/00 3,300 3,300,000
------------
8,300,000
- ------------------------------------------------------------------------------------------------------------------------------
Georgia--4.6%
Cobb Cnty. Dev. Auth., Georgia Pwr., Q.T.R.M.T., Ser. 91-1 VMIG1 3.95 2/01/00 8,330 8,330,000
- ------------------------------------------------------------------------------------------------------------------------------
Hawaii--1.2%
Honolulu City & Cnty., G.O., Ser. 1990-D NR 6.90 12/01/00 2,000 2,072,598
</TABLE>

- --------------------------------------------------------------------------------
See Notes to Financial Statements. 3

<PAGE>
Portfolio of Investments as
of December 31, 1999 PRUDENTIAL TAX-FREE MONEY FUND, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Moody's Principal
Rating Interest Maturity Amount Value
Description(a) (Unaudited) Rate Date (000) (Note 1)
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------
Illinois--7.7%
Illinois Hlth. Fac. Auth., Memorial Med Ctr., Ser. 1989 NR 6.50% 10/01/00 $ 4,740 $ 4,909,100
Illinois Hlth. Fac. Auth.,
Evanston Hosp. Corp. Proj., A.N.N.M.T., Ser. 92 VMIG1 3.90 10/31/00 3,000 3,000,000
Evanston Hosp., A.N.N.M.T., Ser. 95 VMIG1 3.25 2/29/00 5,000 5,000,000
Bear Stearns Muni. Secs. Trust, Chicago O'Hare Int'l Airport,
A.M.T.,
Ser. 99-83 A-1+* 5.87 1/05/00 1,000 1,000,000
------------
13,909,100
- ------------------------------------------------------------------------------------------------------------------------------
Indiana--3.4%
Indiana St. Dev. Fin. Auth. Rev., Edl. Facs., Covenant
Christian H.S., F.R.W.D., Ser. 96 NR 5.65 1/06/00 5,000 5,000,000
South Bend Eco. Dev. Rev., Dynamic R.E.H.C. Inc., F.R.W.D.,
A.M.T.,
Ser. 99 NR 5.60 1/05/00 1,195 1,195,000
------------
6,195,000
- ------------------------------------------------------------------------------------------------------------------------------
Kansas--1.4%
Kansas Dev. Fin. Auth., Dept. of Comm. & Hsg. Impact, Ser. 99 NR 4.00 6/01/00 2,470 2,472,442
- ------------------------------------------------------------------------------------------------------------------------------
Louisiana--0.7%
Plaquemines Parish, British Petroleum, F.R.D.D., A.M.T., Ser.
95 P-1 5.35 1/03/00 1,200 1,200,000
- ------------------------------------------------------------------------------------------------------------------------------
Maryland--1.2%
Anne Arundel Cnty., Baltimore Gas & Elec., A.N.N.M.T., Ser.
84 VMIG1 3.52 7/01/00 2,210 2,210,000
- ------------------------------------------------------------------------------------------------------------------------------
Massachusetts--3.3%
Mass. St. Hsg. Fin. Agcy., Single Fam. Hsg. Notes, A.M.T.,
Ser. A MIG1 3.60 6/01/00 1,000 1,000,928
Mass. St. Wtr Poll. Abatement Tr., New Bedford Loan Prog.,
Ser. 96A NR 5.75 2/01/00 955 956,967
Mass. St. Hlth. & Edl. Facs. Auth. Rev., Boston Univ., Ser.
85H, F.R.W.D. VMIG1 5.35 1/05/00 3,000 3,000,000
Mass. St. Wtr. Res. Auth., Gen. Rev. Bonds, Ser. 90A NR 7.625 4/01/00 1,000 1,030,629
------------
5,988,524
- ------------------------------------------------------------------------------------------------------------------------------
Michigan--2.9%
Michigan Muni. Bond Auth., Rev. Notes, Ser. 99B-1 SP-1+* 4.25 8/25/00 3,500 3,514,204
Michigan St. Hsg. Dev. Auth., Rental Hsg. Rev., Ser. 92A NR 5.80 4/01/00 1,680 1,689,131
------------
5,203,335
</TABLE>

- --------------------------------------------------------------------------------
See Notes to Financial Statements. 4

<PAGE>
Portfolio of Investments as
of December 31, 1999 PRUDENTIAL TAX-FREE MONEY FUND, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Moody's Principal
Rating Interest Maturity Amount Value
Description(a) (Unaudited) Rate Date (000) (Note 1)
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------
Minnesota--4.7%
Bloomington Comm. Dev. Rev., 94th Str. Proj., F.R.W.D.,
Ser. 85 A-1+* 5.50% 1/07/00 $ 4,945 $ 4,945,000
St Paul Hsg. Redev. Auth., Heating Rev., F.R.W.D., Ser. 99D A-1+* 5.50 1/07/00 3,500 3,500,000
------------
8,445,000
- ------------------------------------------------------------------------------------------------------------------------------
Mississipi--3.0%
Mississippi Hsg. Fin. Corp., Single. Fam. Mtg. Rev.,
F.R.W.D., Ser. 88 A-1+* 5.55 1/06/00 5,340 5,340,000
- ------------------------------------------------------------------------------------------------------------------------------
Missouri--0.6%
Branson, Tax Increment-Street Imprv., Ser. 96 NR 4.65 12/01/00 1,000 1,005,776
- ------------------------------------------------------------------------------------------------------------------------------
New Hampshire--6.1%
New Hampshire Bus. Fin. Auth.,
New England Pwr. Co. Proj., T.E.C.P., Ser. 90A, A.M.T. P-1 3.90 2/15/00 2,000 2,000,000
New England Pwr. Co. Proj., T.E.C.P., Ser. 90B VMIG1 3.90 1/27/00 6,500 6,500,000
Luminescent Systems, F.R.W.D., A.M.T., Ser. 98 A-1* 5.65 1/05/00 2,450 2,450,000
------------
10,950,000
- ------------------------------------------------------------------------------------------------------------------------------
New York--5.4%
Hempstead Ind. Dev., American Ref. Fuel, F.R.W.D., Ser. 99 A-1* 5.80 1/05/00 3,700 3,700,000
New York St. Local Govt. Asst. Corp., SGA Ref. Bonds,
F.R.D.D.,
Ser. SGA59 A-1+* 4.90 1/03/00 3,500 3,500,000
Niagara Cnty. NY Ind. Dev. Agcy., Solid Waste Disposal Rev.,
American Ref. Fuel, F.R.W.D., A.M.T., Ser. 94C P-1 6.50 1/05/00 2,500 2,500,000
------------
9,700,000
- ------------------------------------------------------------------------------------------------------------------------------
Ohio--6.4%
Dublin City, Transp. Sys., Ser. 99 NR 4.10 6/16/00 4,743 4,751,007
East Lake Dev., Astro Model Corp., F.R.W.D., A.M.T., Ser. 96 NR 5.60 1/06/00 2,800 2,800,000
Ohio Hsg. Fin. Agcy.,
Residential Mtg., A.M.T., Ser. 117(d) A-1+* 3.90 7/20/00 1,000 1,000,000
Multifamily Hsg. Ref., F.R.W.D., Ser. B A-1+* 5.50 1/07/00 3,000 3,000,000
------------
11,551,007
- ------------------------------------------------------------------------------------------------------------------------------
Oklahoma--2.2%
Morgan Keegan Var. Trust, 10 Willmington Pl. Prog., Tulsa Co.
Hsg. Fin. Auth., F.R.W.D. A.M.T., Ser. 99E A-1+* 5.76 1/06/00 2,000 2,000,000
Tulsa Pkg. Auth., Williams Ctr. Proj., S.E.M.M.T., Ser. 87A VMIG1 3.90 5/15/00 2,000 2,000,000
------------
4,000,000
</TABLE>

- --------------------------------------------------------------------------------
See Notes to Financial Statements. 5

<PAGE>
Portfolio of Investments as
of December 31, 1999 PRUDENTIAL TAX-FREE MONEY FUND, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Moody's Principal
Rating Interest Maturity Amount Value
Description(a) (Unaudited) Rate Date (000) (Note 1)
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------
Oregon--2.0%
Oregon Hsg. & Comm. Serv. Dept., Mtge. Rev. Bonds,
Single Family Mtge., A.M.T., Ser. 99D MIG1 3.20% 4/13/00 $ 1,500 $ 1,500,000
Single Family Mtge., Ser. 99G MIG1 3.45 6/29/00 2,000 2,000,000
------------
3,500,000
- ------------------------------------------------------------------------------------------------------------------------------
Pennsylvania--5.0%
Allegheny Cnty., Greater Pitt. Int'l Airport, Ser. 90A Aaa 7.05 1/01/00 1,000 1,000,000
Lancaster Cnty. Hosp. Auth., Luthercare Proj., F.R.W.D. Ser.
99 A-1* 5.75 1/06/00 6,500 6,500,000
Temple Univ., Univ. Funding Notes, Ser. 1999 MIG1 3.15 5/12/00 1,500 1,500,000
------------
9,000,000
- ------------------------------------------------------------------------------------------------------------------------------
South Dakota--1.9%
South Dakota Hsg. Dev. Auth., Homeownership Mtg., Ser. 99-J MIG1 3.75 9/28/00 2,025 2,025,000
South Dakota Hsg. Dev. Auth., Hsg. Dev. Rev., F.R.W.D., Ser.
98 NR 5.70 1/06/00 1,350 1,350,000
------------
3,375,000
- ------------------------------------------------------------------------------------------------------------------------------
Texas--9.2%
Guadalupe Blanco River Auth., BOC Group Inc., F.R.W.D., Ser.
1993 CPS1 4.00 1/06/00 3,800 3,800,000
Gulf Coast Waste Disp. Auth. Env. Fac. Rev., F.R.D.D.
Amoco Oil Co., Ser. 96, A.M.T. P-1 5.35 1/03/00 1,400 1,400,000
Amoco Oil Co. Proj., Ser. 98, A.M.T. VMIGI 5.35 1/03/00 1,200 1,200,000
Bayer Corp. Ser. 97, A.M.T. P-1 5.40 1/03/00 1,800 1,800,000
Houston, T.E.C.P.,
Ser. B P-1 3.80 1/21/00 3,000 3,000,000
Ser. A P-1 3.90 1/25/00 2,400 2,400,000
San Antonio Elec. & Gas Rev., Munic. Secs. Trust Rcpts.,
F.R.W.D.,
Ser. SGA48 A-1+* 5.85 1/05/00 3,000 3,000,000
------------
16,600,000
- ------------------------------------------------------------------------------------------------------------------------------
Virginia--3.8%
Fairfax Cnty. Econ Dev. Auth., LEHM-Resource Recovery,
Q.T.R.O.T.S., A.M.T., Ser. 99A15(d) VMIG1 3.95 2/01/00 4,000 4,000,000
Southampton Cnty. Ind. Dev. Auth., Hadson Pwr. Proj.,
F.R.D.D., A.M.T., Ser. 90A VMIG1 5.45 1/03/00 2,800 2,800,000
------------
6,800,000
</TABLE>

- --------------------------------------------------------------------------------
See Notes to Financial Statements. 6

- ---------------
(a) The following abbreviations are used in portfolio descriptions:
A.M.T.--Alternate Minimum Tax
A.N.N.M.T.--Annual Mandatory Tender(b)
A.N.N.O.T.--Annual Optional Tender(b)
F.R.D.D.--Floating Rate (Daily) Demand Note(b)
F.R.W.D.--Floating Rate (Weekly) Demand Note(b)
G.O.--General Obligation
Q.T.R.M.T.--Quarterly Tax and Reserve Mandatory Tender(b)
Q.T.R.O.T.S.--Quarterly Synthetic Optional Tender(b)
S.E.M.M.T.--Semi-Annual Mandatory Tender(b)
T.E.C.P.--Tax-Exempt Commercial Paper
(b) For purposes of amortized cost valuation, the maturity date of these
instruments is considered to be the later of the next date on which the
security can be redeemed at par, or the next date on which the rate of
interest is adjusted.
(c) The cost basis for federal income tax purposes is substantially the same as
that used for financial reporting purposes.
(d) Indicates a restricted security; the aggregate cost of such securities is
$6,300,000 which represents approximately 3.5% of net assets.
* Standard & Poor's Rating.
NR--Not Rated by Moody's or Standard & Poor's.
The Fund's current Statement of Additional Information contains a description of
Moody's and Standard and Poor's ratings.
- --------------------------------------------------------------------------------
See Notes to Financial Statements. 7

<PAGE>
Statement of Assets and Liabilities PRUDENTIAL TAX-FREE MONEY FUND, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Assets December 31, 1999
-----------------
<S> <C>
Investments, at amortized cost which approximates market value.......................................... $ 180,552,318
Cash.................................................................................................... 94,526
Receivable for Fund shares sold......................................................................... 3,625,664
Interest receivable..................................................................................... 1,459,269
Prepaid expenses........................................................................................ 7,270
-----------------
Total assets......................................................................................... 185,739,047
-----------------
Liabilities
Payable for Investments purchased....................................................................... 3,827,042
Payable for Fund shares reacquired...................................................................... 1,688,085
Accrued expenses........................................................................................ 156,382
Dividends payable....................................................................................... 89,213
Management fee payable.................................................................................. 80,492
Distribution fee payable................................................................................ 10,876
-----------------
Total liabilities.................................................................................... 5,852,090
-----------------
Net Assets.............................................................................................. $ 179,886,957
-----------------
-----------------
Net assets were comprised of:
Common Stock, $.01 par value......................................................................... $ 1,799,812
Paid-in capital in excess of par..................................................................... 178,087,145
-----------------
Net assets, December 31, 1999........................................................................... $ 179,886,957
-----------------
-----------------
Net asset value, offering price and redemption price
per share ($179,886,957 / 179,981,236 shares)........................................................ $1.00
-----------------
-----------------
</TABLE>

- --------------------------------------------------------------------------------
See Notes to Financial Statements. 8

<PAGE>
PRUDENTIAL TAX-FREE MONEY FUND, INC.
Statement of Operations
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended
Net Investment Income December 31, 1999
<S> <C>
Income
Interest.............................. $ 6,726,641
-----------------
Expenses
Management fee........................ 1,013,590
Distribution fee...................... 253,397
Transfer agent's fees and expenses.... 160,000
Custodian's fees and expenses......... 63,000
Registration fees..................... 54,000
Reports to shareholders............... 45,000
Audit fee and expenses................ 26,000
Legal fees and expenses............... 15,000
Directors' fees and expenses.......... 11,000
Miscellaneous......................... 4,275
-----------------
Total expenses..................... 1,645,262
Less: custodian fee credit............ (15,728)
-----------------
Net expenses....................... 1,629,534
-----------------
Net investment income.................... 5,097,107
-----------------
Realized Gain on Investments
Net realized gain on investment
transactions.......................... 3
-----------------
Net Increase in Net Assets
Resulting from Operations................ $ 5,097,110
-----------------
-----------------
</TABLE>

PRUDENTIAL TAX-FREE MONEY FUND, INC.
Statement of Changes in Net Assets
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Increase (Decrease) Year Ended December 31,
in Net Assets 1999 1998
<S> <C> <C>
Operations
Net investment income.......... $ 5,097,107 $ 7,783,907
Net realized gain on investment
transactions................ 3 10,290
------------ ------------
Net increase in net assets
resulting from operations... 5,097,110 7,794,197
------------ ------------
Dividends and distributions to
shareholders................... (5,097,110) (7,794,197)
------------ ------------
Fund share transactions
(at $1 per share)
Proceeds from shares sold...... 604,058,962 776,364,363
Net asset value of shares
issued to shareholders in
reinvestment of dividends
and distributions........... 4,896,169 7,493,041
Cost of shares reacquired...... (628,233,381) (914,504,317)
------------ ------------
Net decrease in net assets from
Fund share transactions..... (19,278,250) (130,646,913)
------------ ------------
Total decrease.................... (19,278,250) (130,646,913)
Net Assets
Beginning of year................. 199,165,207 329,812,120
------------ ------------
End of year....................... $179,886,957 $199,165,207
------------ ------------
------------ ------------
</TABLE>

- --------------------------------------------------------------------------------
See Notes to Financial Statements. 9

<PAGE>
Notes to Financial Statements PRUDENTIAL TAX-FREE MONEY FUND, INC.
- --------------------------------------------------------------------------------
Prudential Tax-Free Money Fund, Inc. (the 'Fund') is registered under the
Investment Company Act of 1940 as a diversified, open-end management investment
company. The investment objective of the Fund is to attain the highest level of
current income that is exempt from federal income taxes, consistent with
liquidity and preservation of capital. The Fund will invest in short-term
tax-exempt debt securities of state and local governments. The ability of the
issuers of the securities held by the Fund to meet their obligations may be
affected by economic or political developments in a specific state, industry or
region.

- ------------------------------------------------------------
Note 1. Accounting Policies

The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements.

Securities Valuation: Portfolio securities are valued at amortized cost, which
approximates market value. The amortized cost method involves valuing a security
at its cost on the date of purchase and thereafter assuming a constant
amortization to maturity of any discount or premium.

Securities Transactions and Net Investment Income: Securities transactions are
recorded on the trade date. Realized gains and losses on sales of investments
are calculated on an identified cost basis. Interest income is recorded on an
accrual basis. The cost of portfolio securities for federal income tax purposes
is substantially the same as for financial reporting purposes. Expenses are
recorded on the accrual basis which may require the use of certain estimates by
management.

Federal Income Taxes: It is the Fund's policy to continue to meet the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its net investment income to its
shareholders. For this reason, no federal income tax provision is required.

Dividends: The Fund declares dividends daily from net investment income and net
realized gains, if any. Payment of dividends is made monthly.

Custody Fee Credits: The Fund has an arrangement with its custodian bank,
whereby uninvested monies earn credits which reduce the fees charged by the
custodian.

Note 2. Agreements

The Fund has a management agreement with Prudential Investments Fund Management
LLC ('PIFM'). Pursuant to this agreement, PIFM has responsibility for all
investment advisory services and supervises the subadviser's performance of such
services. PIFM has entered into a subadvisory agreement with Prudential
Investment Corporation ('PIC'); PIC furnishes investment advisory services in
connection with the management of the Fund. PIFM pays for the cost of the
subadviser's services, the compensation of officers of the Fund, occupancy and
certain clerical and bookkeeping costs of the Fund. The Fund bears all other
costs and expenses.

The management fee paid PIFM is computed daily and payable monthly, at an annual
rate of .50 of 1% of the Fund's average daily net assets up to $750 million,
.425 of 1% of the next $750 million of average daily net assets and .375 of 1%
of average daily net assets in excess of $1.5 billion.

The Fund has a distribution agreement with Prudential Investment Management
Services LLC ('PIMS'). The Fund compensates PIMS for distributing and servicing
the Fund's shares pursuant to the plan of distribution at an annual rate of .125
of 1% of the Fund's average daily net assets. The distribution fee is accrued
daily and payable monthly.

PIFM, PIC and PIMS are indirect, wholly owned subsidiaries of The Prudential
Insurance Company of America.

- ------------------------------------------------------------
Note 3. Other Transactions With Affiliates

Prudential Mutual Fund Services LLC ('PMFS'), a wholly owned subsidiary of PIFM,
serves as the Fund's transfer agent and during the year ended December 31, 1999,
the Fund incurred fees of approximately $144,800 for the services of PMFS. As of
December 31, 1999, approximately $10,800 of such fees were due to PMFS. Transfer
agent fees and expenses in the Statement of Operations include certain
out-of-pocket expenses paid to nonaffiliates.
- --------------------------------------------------------------------------------
10

<PAGE>
Financial Highlights PRUDENTIAL TAX-FREE MONEY FUND, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended December 31,
------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
-------- -------- -------- -------- --------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year................................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Net investment income and realized gains........................... .025 .028 .030 .028 .031
Dividends and distributions to shareholders........................ (.025) (.028) (.030) (.028) (.031)
-------- -------- -------- -------- --------
Net asset value, end of year....................................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
TOTAL RETURN(a):................................................... 2.56% 2.83% 3.00% 2.84% 3.15%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000)...................................... $179,887 $199,165 $329,812 $333,808 $387,651
Average net assets (000)........................................... $202,718 $277,839 $339,825 $403,230 $470,370
Ratios to average net assets:
Expenses, including distribution fee............................ .81% .80% .78% .80% .85%
Expenses, excluding distribution fee............................ .69% .68% .66% .67% .72%
Net investment income........................................... 2.51% 2.80% 2.97% 2.83% 3.14%
</TABLE>

- ---------------
(a) Total return is calculated assuming a purchase of shares on the first day
and a sale on the last day of each year reported and includes reinvestment
of dividends and distributions.
- --------------------------------------------------------------------------------
See Notes to Financial Statements. 11

<PAGE>
Report of Independent Accountants PRUDENTIAL TAX-FREE MONEY FUND, INC.
- --------------------------------------------------------------------------------
To the Shareholders and Board of Directors of
Prudential Tax-Free Money Fund, Inc.

In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Prudential Tax-Free Money Fund,
Inc. (the 'Fund') at December 31, 1999, the results of its operations for the
year then ended, the changes in its net assets for each of the two years in the
period then ended and the financial highlights for each of the five years in the
period then ended, in conformity with accounting principles generally accepted
in the United States. These financial statements and financial highlights
(hereafter referred to as 'financial statements') are the responsibility of the
Fund's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with auditing standards generally accepted in
the United States, which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at December 31, 1999 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.

PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York
February 14, 2000

Tax Information (Unaudited) PRUDENTIAL TAX-FREE MONEY FUND, INC.
- --------------------------------------------------------------------------------
We are required by the Internal Revenue Code to advise you within 60 days of the
Fund's fiscal year end (December 31, 1999) as to the federal tax status of
dividends paid by the Fund during such fiscal year. Accordingly, we are advising
you that in the fiscal year ended December 31, 1999, dividends paid from net
investment income of $.025 were all federally tax-exempt interest dividends.

Information with respect to the state taxability of your investment in the Fund
was sent to you under separate cover.
- --------------------------------------------------------------------------------
12

<PAGE>

Getting the Most from Your Prudential Mutual Fund

How many times have you read these reports--or other
financial materials-- and stumbled across a word that
you don't understand?

Many shareholders have run into the same problem. We'd
like to help. So we'll use this space from time to time
to explain some of the words you might have read, but not
understood. And if you have a favorite word that no one can
explain to your satisfaction, please write to us.

Basis Point: 1/100th of 1%. For example, one-half of one
percent is 50 basis points.

Collateralized Mortgage Obligations (CMOs): Mortgage-backed
bonds that separate mortgage pools into different maturity
classes, called tranches. These instruments are sensitive
to changes in interest rates and homeowner refinancing
activity. They are subject to prepayment and maturity
extension risk.

Derivatives: Securities that derive their value from other
securities. The rate of return of these financial instruments
rises and falls--sometimes very suddenly--in response to
changes in some specific interest rate, currency, stock,
or other variable.

Discount Rate: The interest rate charged by the
Federal Reserve on loans to member banks.

Federal Funds Rate: The interest rate charged by one
bank to another on overnight loans.

Futures Contract: An agreement to purchase or sell a
specific amount of a commodity or financial instrument at a
set price at a specified date in the future.

Leverage: The use of borrowed assets to enhance return.
The expectation is that the interest rate charged on
borrowed funds will be lower than the return on the
investment. While leverage can increase
profits, it can also magnify losses.

Liquidity: The ease with which a financial instrument
(or product) can be bought or sold (converted into cash)
in the financial markets.

Price/Earnings Ratio: The price of a share of stock divided by the
earnings per share for a 12-month period.

Option: An agreement to purchase or sell something, such
as shares of stock, by a certain time for a specified price.
An option need not be exercised.

Spread: The difference between two values; often
used to describe the difference between "bid" and "asked"
prices of a security, or between the yields of two similar
maturity bonds.

Yankee Bond: A bond sold by a foreign company or government
in the U.S. market and denominated in U.S. dollars.

<PAGE>
Getting the Most from Your Prudential Mutual Fund

Some mutual fund shareholders won't ever read this--they
don't read annual and semiannual reports. It's quite
understandable. These annual and semiannual reports
are prepared to comply with federal regulations, and
are often written in language that is difficult to
understand. So, when most people run into those
particularly daunting sections of these reports,
they don't read them.

We think that's a mistake.

At Prudential Mutual Funds, we've made some changes to
our report to make it easier to understand and more pleasant
to read. We hope you'll find it profitable to spend a few
minutes familiarizing yourself with your investment. Here's
what you'll find in the report:

Performance at a Glance
Since an investment's performance is often a shareholder's
primary concern, we present performance information in two
different formats. You'll find it first on the "Performance
at a Glance" page where we compare the Fund and the comparable
average calculated by Lipper, Inc., a nationally recognized
mutual fund rating agency. We report both the cumulative
total returns and the average annual total returns. The
cumulative total return is the total amount of income
and appreciation the Fund has achieved in various time
periods. The average annual total return is an annualized
representation of the Fund's performance. It gives you an
idea of how much the Fund has earned in an average year
for a given time period. Under the performance box, you'll
see legends that explain the performance information, whether
fees and sales charges have been included in returns, and
the inception dates for the Fund's share classes.

See the performance comparison charts at the back of the
report for more performance information. Please keep in
mind that past performance is not indicative of future results.

Portfolio Manager's Report
The portfolio manager, who invests your money for you,
reports on successful--and not-so-successful--strategies
in this section of your report. Look for recent purchases
and sales here, as well as information about the sectors
the portfolio manager favors, and any changes that are on
the drawing board.

Portfolio of Investments
This is where the report begins to appear technical,
but it's really just a listing of each security held at
the end of the reporting period, along with valuations
and other information. Please note that
sometimes we discuss a security in the Portfolio
Manager's Report that doesn't appear in this listing
because it was sold before the close of the reporting period.

<PAGE>
Statement of Assets and Liabilities

The balance sheet shows the assets (the value of the
Fund's holdings), liabilities (how much the Fund owes),
and net assets (the Fund's equity, or holdings after the
Fund pays its debts) as of the end of the reporting period.
It also shows how we calculate the net asset value per share
for each class of shares. The net asset value is reduced by
payment of your dividend, capital gain, or other distribution,
but remember that the money or new shares are being paid or
issued to you. The net asset value fluctuates daily, along with
the value of every security in the portfolio.

Statement of Operations
This is the income statement, which details income
(mostly interest and dividends earned) and expenses
(including what you pay us to manage your money). You'll also see
capital gains here--both realized and unrealized.

Statement of Changes in Net Assets
This schedule shows how income and expenses translate into
changes in net assets. The Fund is required to pay out the
bulk of its income to shareholders every year, and this
statement shows you how we do it--through dividends and
distributions--and how that affects the net assets. This
statement also shows how money from investors flowed into
and out of the Fund.

Notes to Financial Statements
This is the kind of technical material that can intimidate
readers, but it does contain useful information. The Notes
provide a brief history and explanation of your Fund's
objectives. In addition, they outline how Prudential Mutual
Funds prices securities. The Notes also explain who manages
and distributes the Fund's shares and, more importantly, how
much they are paid for doing so. Finally, the Notes explain
how many shares are outstanding and the number issued and
redeemed over the period.

Financial Highlights
This information contains many elements from prior pages,
but on a per-share basis. It is designed to help you
understand how the Fund performed, and to compare this
year's performance and expenses to those of prior years.

Independent Auditor's Report
Once a year, an outside auditor looks over our books
and certifies that the information is fairly presented
and complies with generally accepted accounting principles.

Tax Information
This is information which we report annually about how
much of your total return is taxable. Should you have any
questions, you may want to consult a tax adviser.

Performance Comparison
These charts are included in the annual report and are required
by the Securities Exchange Commission. Performance is presented
here as a hypothetical $10,000 investment in the Fund since its
inception or for 10 years (whichever is shorter). To help you put
that return in context, we are required to include the
performance of an unmanaged, broad-based securities index as
well. The index does not reflect the cost of buying the securities
it contains or the cost of managing a mutual fund. Of course, the
index holdings do not mirror those of the Fund--the
index is a broad-based reference point commonly used by
investors to measure how well they are doing. A definition
of the selected index is also provided. Investors cannot
invest directly in an index.

<PAGE>
The Prudential Mutual Fund Family

Prudential offers a broad range of mutual funds designed
to meet your individual needs. For information about these
funds, contact your financial adviser or call us at (800)
225-1852. Read the prospectus carefully before you invest or
send money.

STOCK FUNDS
Prudential Emerging Growth Fund, Inc.
Prudential Equity Fund, Inc.
Prudential Equity Income Fund
Prudential Index Series Fund
Prudential Small-Cap Index Fund
Prudential Stock Index Fund
The Prudential Investment Portfolios, Inc.
Prudential Jennison Growth Fund
Prudential Jennison Growth & Income Fund
Prudential Mid-Cap Value Fund
Prudential Real Estate Securities Fund
Prudential Sector Funds, Inc.
Prudential Financial Services Fund
Prudential Health Sciences Fund
Prudential Technology Fund
Prudential Utility Fund
Prudential Small-Cap Quantum Fund, Inc.
Prudential Small Company Value Fund, Inc.
Prudential Tax-Managed Funds
Prudential Tax-Managed Equity Fund
Prudential 20/20 Focus Fund
Nicholas-Applegate Fund, Inc.
Nicholas-Applegate Growth Equity Fund
Target Funds
Large Capitalization Growth Fund
Large Capitalization Value Fund
Small Capitalization Growth Fund
Small Capitalization Value Fund
Asset Allocation/Balanced Funds
Prudential Balanced Fund
Prudential Diversified Funds
Conservative Growth Fund
Moderate Growth Fund
High Growth Fund
The Prudential Investment Portfolios, Inc.
Prudential Active Balanced Fund

GLOBAL FUNDS
Global Stock Funds
Prudential Developing Markets Fund
Prudential Developing Markets Equity Fund
Prudential Latin America Equity Fund
Prudential Europe Growth Fund, Inc.
Prudential Global Genesis Fund, Inc.
Prudential Index Series Fund
Prudential Europe Index Fund
Prudential Pacific Index Fund
Prudential Natural Resources Fund, Inc.
Prudential Pacific Growth Fund, Inc.
Prudential World Fund, Inc.
Prudential Global Growth Fund
Prudential International Value Fund
Prudential Jennison International Growth Fund
Global Utility Fund, Inc.

Target Funds
International Equity Fund

Global Bond Funds
Prudential Global Total Return Fund, Inc.
Prudential International Bond Fund, Inc.

BOND FUNDS
Taxable Bond Funds
Prudential Diversified Bond Fund, Inc.
Prudential Government Income Fund, Inc.
Prudential Government Securities Trust
Short-Intermediate Term Series
Prudential High Yield Fund, Inc.
Prudential High Yield Total Return Fund, Inc.
Prudential Index Series Fund
Prudential Bond Market Index Fund
Prudential Structured Maturity Fund, Inc.
Income Portfolio

Target Funds
Total Return Bond Fund
Tax-Exempt Bond Funds
Prudential California Municipal Fund
California Series
California Income Series
Prudential Municipal Bond Fund
High Income Series
Insured Series
Prudential Municipal Series Fund
Florida Series
Massachusetts Series
New Jersey Series
New York Series
North Carolina Series
Ohio Series
Pennsylvania Series
Prudential National Municipals Fund, Inc.

MONEY MARKET FUNDS
Taxable Money Market Funds
Cash Accumulation Trust
Liquid Assets Fund
National Money Market Fund
Prudential Government Securities Trust
Money Market Series
U.S. Treasury Money Market Series
Prudential Special Money Market Fund, Inc.
Money Market Series
Prudential MoneyMart Assets, Inc.

Tax-Free Money Market Funds
Prudential Tax-Free Money Fund, Inc.
Prudential California Municipal Fund
California Money Market Series
Prudential Municipal Series Fund
Connecticut Money Market Series
Massachusetts Money Market Series
New Jersey Money Market Series
New York Money Market Series

Command Funds
Command Money Fund
Command Government Fund
Command Tax-Free Fund

Institutional Money Market Funds
Prudential Institutional Liquidity Portfolio, Inc.
Institutional Money Market Series

<PAGE>

Prudential Mutual Funds
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077

(800) 225-1852

visit our website at www.prudential.com

Fund Symbol CUSIP
74436P103

Directors
Delayne Dedrick Gold
Robert F. Gunia
Robert E. LaBlanc
David R. Odenath, Jr.
Robin B. Smith
Stephen Stoneburn
John R. Strangfeld
Nancy H. Teeters
Clay T. Whitehead

Officers
John R. Strangfeld, President
Robert F. Gunia, Vice President
Grace C. Torres, Treasurer
Robert C. Rosselot, Secretary
Stephen M. Ungerman, Assistant Treasurer

Manager
Prudential Investments Fund Management LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077

Investment Adviser
The Prudential Investment Corporation
Prudential Plaza
Newark, NJ 07102-3777

Distributor
Prudential Investment Management Services LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077

Custodian
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171

Transfer Agent
Prudential Mutual Fund Services LLC
P.O. Box 15005
New Brunswick, NJ 08906

Independent Accountants
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, NY 10036

Legal Counsel
Sullivan & Cromwell
125 Broad Street
New York, NY 10004

The views expressed in this report and information about
the Fund's portfolio holdings are for the period covered
by this report and are subject to change thereafter.

This report is not authorized for distribution to
prospective investors unless preceded or accompanied by a current
prospectus.

(ICON) Printed on Recycled Paper

<PAGE>
Fund Symbol CUSIP
74436P103

visit our website at www.prudential.com

The views expressed in this report and information about
the Fund's portfolio holdings are for the period covered
by this report and are subject to change thereafter.

This report is not authorized for distribution to prospective
investors unless preceded or accompanied by a current prospectus.

MF103E (ICON) Printed on Recycled Paper