--------------------------------------------------------------------------------
DAILY TAX FREE 600 FIFTH AVENUE, NEW YORK, NY 10020
INCOME FUND, INC. 212-830-5200
================================================================================
Dear Shareholder:
We are pleased to present the annual report of Daily Tax Free Income Fund, Inc.
for the year ended October 31, 2000.
The Fund had net assets of $610,854,452 and 3,632 active shareholders.
We thank you for your support and look forward to continuing to serve your cash
management needs.
Sincerely,
\s\Steven W. Duff
Steven W. Duff
President
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS
OCTOBER 31, 2000
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Value Standard
Amount Yield (Note 1) Moody's & Poor's
------ ----- ------ ------- -------
Variable Rate Demand Instruments - Participations (c) (1.58%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 48,332 The Bank of New York LOC covering two issues due 05-01-01 5.70% $ 48,332 P1 A1+
8,850,508 Chase Manhattan Bank LOC covering four issues
due 01-01-02 through 05-01-13 5.14% to 6.17% 8,850,508 P1 A1+
4,971 The First National Bank of Maryland LOC covering one issue
due 12-15-00 5.58% 4,971 P1 A1
715,000 PNC Bank, N.A. LOC covering one issue due 07-01-03 7.12% 715,000 P1 A1
----------- -------------
9,618,811 Total Variable Rate Demand Instruments - Participations 9,618,811
----------- -------------
<CAPTION>
Variable Rate Demand Instruments - Private Placements (c) (7.02%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 330,000 Banc One Arizona LOC covering one issue due 04-01-05 6.17% $ 330,000 P1 A1
1,500,000 Banque Nationale de Paris LOC covering one issue due 12-01-00 5.70% 1,500,000 P1 A1+
2,000,000 Creditanstalt-Bankverein LOC covering one issue due 06-01-10 5.70% 2,000,000 P1 A1+
1,500,000 Dresdner Bank AG LOC covering one issue due 12-28-14 5.70% 1,500,000 P1 A1+
4,645,000 The First National Bank of Maryland LOC covering one issue
due 12-01-20 4.55% 4,645,000 P1 A1
2,276,365 The Huntington National Bank LOC covering one issue due 10-01-05 6.46% 2,276,365 P1 A1
948,333 Key Bank, N.A. LOC covering one issue due 07-01-15 5.70% 948,333 P1 A1
875,000 PNC Bank, N.A. LOC covering one issue due 06-30-02 6.17% 875,000 P1 A1+
7,803,300 Seattle-First National Bank LOC Backed by Bank of America NT & SA
LOC covering four issues due 01-01-05 through 7-01-15 6.17% 7,803,300 P1 A1
4,000,000 Societe Generale LOC covering one issue due 11-01-05 5.70% 4,000,000 P1 A1+
10,866,000 Union Bank of California LOC covering three issues due 12-01-15 5.70% 10,866,000 P1 A1+
1,000,000 Wells Fargo Bank, N.A. LOC covering two issues
due 12-15-04 through 08-01-05 5.79% 1,000,000 P1 A1+
3,625,000 York Bank and Trust LOC covering one issue due 12-01-14 4.35% 3,625,000 P1 A1
1,524,784 Zion's National Bank Liquidity Facility covering
one issue due 12-10-15 5.98% 1,524,784 P1 A2
----------- -------------
42,893,782 Total Variable Rate Demand Instruments - Private Placements 42,893,782
----------- -------------
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- -------
Tax Exempt Investments (18.43%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 2,100,000 Antigo, WI Unified School District TRAN (b) 10/30/01 4.54% $ 2,102,984
2,140,000 Bonduel, WI School District TRAN (b) 08/22/01 4.65 2,141,642
1,610,000 Campbell County, WY School District # 1
Capital Maintenance Fund - Series A (b) 06/28/01 4.68 1,612,511
</TABLE>
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
--------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- -------
Tax Exempt Investments (Continued)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 8,745,000 Campbell County, WY School District # 1 TAW - Series 1997 (b) 06/28/01 4.68% $ 8,758,641
1,000,000 Candott, WI School District TRAN (b) 09/28/01 4.53 1,001,902
3,800,000 Delavan Darlen, WI School District TRAN (b) 08/24/01 4.49 3,805,856
4,500,000 Duneland, IN Independent School District (b) 12/29/00 4.24 4,500,685
2,500,000 Elkhorn, WI School District TRAN (b) 08/24/01 4.49 2,504,825
4,000,000 Erie County, PA TRAN 12/15/00 3.99 4,002,085 MIG-1
5,565,000 Freetown, MA BAN (b) 07/16/01 4.34 5,583,742
2,200,000 Hartland/Lakeside, WI Joint School District #3 TRAN (b) 09/20/01 4.53 2,205,006
1,200,000 Iowa Higher Education Loan Authority RAN
(William Penn University) - Series I
LOC Firstar Bank 05/24/01 4.93 1,203,193 SP-1
2,500,000 Iowa Higher Education Loan Authority RAN
(William Penn University) - Series I
LOC Northern Trust 05/24/01 4.54 2,509,663 SP1+
5,000,000 Kelso, WA GAN (b) 02/25/01 4.50 5,000,000
2,500,000 Kentucky Interlocal School TRAN 06/29/01 4.34 2,509,440 SP-1+
5,000,000 Linn County, IA
Cedar Rapids Community School District - Series 1999 (b) 07/06/01 4.44 5,016,173
7,000,000 Merrimack County, NH TAN (b) 12/29/00 4.20 7,000,424
1,100,000 Monona Grove, WI School District TRAN (b) 10/30/01 4.53 1,101,766
1,700,000 Mount Horeb, WI Area School District TRAN (b) 11/01/01 4.70 1,701,775
3,000,000 Multinomah County, OR School District #1 06/29/01 4.34 3,011,323 MIG-1 SP1+
1,000,000 New Hampshire HEFA RAN (New England College)
LOC Allied Irish Bank 05/17/01 4.83 1,003,082 SP-1
5,500,000 Ohio School District TAN 06/29/01 4.39 5,523,532 MIG-1
3,400,000 Plymouth, WI Joint School District TRAN (b) 10/30/01 4.60 3,404,835
5,000,000 Racine Unified School District TRAN 07/06/01 4.34 5,008,079 MIG-1
3,775,000 Spartanburg, SC
School District Clover GO BAN - Series 2000 (b) 05/31/01 4.95 3,780,194
2,700,000 Tomahawk, WI School District TRAN (b) 10/19/01 4.70 2,702,485
7,000,000 Wachusetts, MA Regional School RAN (b) 07/29/01 4.39 7,002,472
2,500,000 Watertown, WI Unified School District (b) 11/01/00 3.84 2,500,000
3,000,000 Weber County, UT TRAN (b) 12/29/00 4.35 3,001,835
2,570,000 Wisconsin School District (b) 11/01/00 4.22 2,570,000
</TABLE>
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
--------------------------------------------------------------------------------
DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
OCTOBER 31, 2000
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- -------
Tax Exempt Investments (Continued)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 3,175,000 Wisconsin School District 09/26/01 4.55% $ 3,175,000 MIG-I
5,625,000 Wyandott, KS Unified Government- Series 23 (b) 08/01/01 4.48 5,630,368
------------ ------------
112,405,000 Total Tax Exempt Investments 112,575,518
------------ ------------
Variable Rate Demand Instruments (c) (54.17%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 700,000 Allegheny County, PA Hospital Development Authority
(St. Francis System Health Center)
LOC Bank One 11/01/27 4.45% $ 700,000 VMIG-1 A1+
5,000,000 Apache County, AZ IDA (Tucson Electric) - Series 1983
LOC Societe Generale 12/15/18 4.40 5,000,000 VMIG-1 A1+
1,000,000 Ashland, KY PCRB (Ashland Oil Inc. Project)
LOC Suntrust Bank 04/01/09 4.35 1,000,000 VMIG-1
4,700,000 Brazos River, TX Harbor Naval District
(Badishce Corporation Facility)
LOC Credit Suisse First Boston 12/01/19 4.40 4,700,000 A1+
1,000,000 Burke County, GA PCRB (Georgia Power Company Vogtle Project) 04/01/25 4.60 1,000,000 VMIG-1 A1
3,400,000 Chelan County, WA Public Utilities District #001
(Chelan Hydro Project) - Series A
Insured by MBIA Insurance Corp. 06/01/15 4.40 3,400,000 VMIG-1 A1+
3,000,000 City of Jacksonville, FL (Florida University)
LOC Bank of America 07/01/19 4.60 3,000,000 VMIG-1
16,700,000 Colony Town, FL HFA
LOC Credit Suisse First Boston 09/01/08 4.35 16,700,000 A1+
9,200,000 Dade County, FL IDA Facilities (Florida Power and Light) - 1999 06/01/21 4.65 9,200,000 VMIG-1 A1+
10,000,000 Dallas Area Rapid Transit
LOC Dexia Credit Locale de France 01/05/05 4.30 10,000,000 VMIG-1 A1+
800,000 Dearfield, WI IDA (Interpane Coatings Project) (b)
LOC Commerzbank A.G. 05/01/03 4.40 800,000
4,000,000 DeKalb County, GA Housing Authority
LOC Bank of Montreal 12/01/07 4.35 4,000,000 A1+
600,000 Delta County, MI EDC
(Mead Escanaba Environmental Improvement) - Series D
LOC Credit Suisse First Boston 12/01/23 4.60 600,000 P1
900,000 Detroit, MI Water Supply System
Insured by FGIC 07/01/13 4.30 900,000 VMIG-1 A1+
3,300,000 Emmaus, PA General Authority Local Government RB
(Bond Pool Project) - Series 1989G-2
LOC Bayerische HypoVereinsbank, A.G. 03/01/34 4.35 3,300,000 A1
</TABLE>
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
--------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- -------
Variable Rate Demand Instruments (c) (Continued)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 9,800,000 Emmaus, PA General Authority Local Government RB
(Bond Pool Project) - Series 1989G-14
LOC Bayerische Landesbank, A.G. 03/01/24 4.35% $ 9,800,000 A1+
150,000 Fairfax, VA IDA (Fairfax Hospital System, Inc.) 10/01/25 4.35 150,000 VMIG-1 A1+
6,350,000 Florida HFA (Springs Colony)
Guaranteed by Federal National Mortgage Association 09/15/26 4.35 6,350,000 A1+
3,300,000 Florida HFA - Series TT
Guaranteed by Federal Home Loan Mortgage Corporation 12/01/29 4.30 3,300,000 A1+
5,000,000 Florida State Municipal Power Agency (Stanton Project)
Insured by MBIA Insurance Corp. 10/01/19 4.25 5,000,000 A1
2,205,000 Franklin County, OH RB
(The Villas at Saint Therse Project) - Series 1997F (b)
LOC Fifth Third Bank 10/01/22 4.40 2,205,000
1,000,000 Greensboro, NC Variable Public Improvement 04/01/14 4.30 1,000,000 VMIG-1 A1+
6,000,000 Hayward, CA MHRB Authority (Barrington Hills) - Series A
Guaranteed by Federal National Mortgage Association 06/15/25 3.85 6,000,000 A1+
360,000 Hillsborough County, FL IDA RB (ADP Inc. Project) (b) 02/01/01 4.85 360,000
2,500,000 Hillsborough County, FL IDA (Tampa Electric Company Gannon) 05/15/18 4.55 2,500,000 VMIG-1 A1+
4,700,000 Illinois Development Finance Authority (James Jordan Boys
& Girls Club & Family Life Center Project) - Series 1995
LOC American National Bank & Trust Company of Chicago/
LaSalle National Bank 08/01/30 4.40 4,700,000 A1+
3,400,000 Illinois Development Finance Authority RB
(Glennwood School for Boys)
LOC Harris Trust & Savings Bank 02/01/33 4.35 3,400,000 A1+
2,200,000 Illinois Development Finance Authority
(Trinity International University)
LOC Firstar Bank 10/01/30 4.40 2,200,000 A1
2,000,000 Illinois Education Loan Facility RB (Lake County Family YMCA)
LOC Harris Trust & Savings Bank 11/01/30 4.35 2,000,000 A1+
4,300,000 Illinois HFFA RB (Northwestern Hospital) 08/15/25 4.65 4,300,000 VMIG-1 A1+
4,900,000 Illinois HFFA RB (St. Lukes Medical Center)
Insured by MBIA Insurance Corp. 11/15/23 4.40 4,900,000 VMIG-1 A1+
6,000,000 Illinois IDFA Chicago Educational Television - Series 1994A
LOC LaSalle National Bank 11/01/14 4.35 6,000,000 VMIG-1
</TABLE>
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
--------------------------------------------------------------------------------
DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
OCTOBER 31, 2000
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- -------
Variable Rate Demand Instruments (c) (Continued)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 19,400,000 Illinois Development Finance Authority
Museum of Contemporary Art 1994
LOC Northern Trust\Harris Trust\LaSalle National\
National Bank of Detroit 02/01/29 4.40% $ 19,400,000 VMIG-1 A1+
5,720,000 Iowa Higher Education Loan Authority
(Private College Facilities- Wartburg Project)
LOC Allied Irish Bank 03/01/30 4.65 5,720,000 VMIG-1
3,000,000 Jackson County, MI EDC (Thrifty Leoni) (b)
LOC Bank One 12/01/14 4.65 3,000,000
4,930,000 Kentucky EDFA (Pooled Hospital Loan Program) 08/01/18 4.55 4,930,000 A1+
5,000,000 Lubbock, TX Educational Facilities Authority
(Lubbock Christian University) 05/01/29 4.40 5,000,000 VMIG-1
10,000,000 Massachusetts State HEFA RB (Harvard University) 11/01/49 4.13 10,000,000 VMIG-1 A1+
5,000,000 Mecklenburg County, NC Variable RB - Series C 02/01/17 4.35 5,000,000 VMIG-1 A1
1,000,000 Michigan Strategic Fund Limited Obligation RB
(Detroit Edison Company) - Series CC
LOC Barclays Bank PLC 09/01/30 4.65 1,000,000 P1 A1+
5,210,000 Missouri State HEFA (Barnes Hospital)
LOC Morgan Guaranty Trust Company 12/01/15 4.30 5,210,000 VMIG-1 A1+
2,000,000 Missouri State HEFA (The Washington University) - Series B 09/01/30 4.65 2,000,000 VMIG-1 A1+
4,290,000 Montgomery County, MD EDC RB
(Brooke Grove Foundations, Incorporated Facilities) - Series 1995
LOC First National Bank of Maryland 01/01/16 4.38 4,290,000 A1
1,400,000 Montgomery County, OH (Miami Valley Hospital) - Series A 11/15/22 4.60 1,400,000 VMIG-1
1,900,000 Montgomery County, TX IDRB
(Houston Area Residential Center Project) - Series 1985
LOC Banque Nationale de Paris 12/01/15 4.45 1,900,000 A1
1,400,000 New Jersey EDA Dock Facility RB
(Bayonne/INTT Project) - Series B
LOC Bank One Capital Market 12/01/27 4.50 1,400,000 VMIG-1
1,500,000 New Jersey State Floating Rate Trust Receipts 05/01/03 4.35 1,500,000 VMIG-1
800,000 New Mexico State Highway Commission Adjustable Tender
Subordinate Lien Tax Revenue Highway Bonds - Series 1996
Insured by FSA 06/15/11 4.35 800,000 VMIG-1 A1+
7,800,000 North Carolina Medical Care Commission HRB
(Duke University) - Series A 06/01/23 4.35 7,800,000 VMIG-1 A1+
</TABLE>
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
--------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- -------
Variable Rate Demand Instruments (c) (Continued)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 4,300,000 Orange County, FL Health Facilities (Adventist)
LOC Suntrust Bank 11/15/14 4.35% $ 4,300,000 VMIG-1 A1+
5,115,000 Orange County, FL HFA MHRB (Post Fountains Project)
Guaranteed by Federal National Mortgage Association 06/01/25 4.35 5,115,000 A1+
5,800,000 Oregon State GO - Series 73F
LOC Bayerische Landesbank, A.G. 12/01/17 4.40 5,800,000 VMIG-1 A1+
4,000,000 Palm Beach County, FL IDRB (Northern Gallery of Art Project)
LOC Northern Trust 05/01/25 4.30 4,000,000 A1+
1,700,000 Palm Beach County, FL RB (Henry Morrison Flagler Project)
LOC Northern Trust 11/01/34 4.35 1,700,000 A1+
2,000,000 Palm Beach County, FL RB
(Jewish Community Campus Corporation)
Insured by AMBAC Indemnity Corp. 03/01/27 4.35 2,000,000 A1+
8,000,000 Pasco County, FL School Board COPS
Insured by AMBAC Indemnity Corp. 08/01/26 4.35 8,000,000 VMIG-1 A1+
1,100,000 Pennsylvania HEFA (Carnegie Melon University) 11/01/27 4.60 1,100,000 A1+
1,000,000 Pennsylvania State (Geisinger Health System) - Series B 08/15/28 4.60 1,000,000 VMIG-1 A1+
3,600,000 Philadelphia, PA Authority for IDRB
(Institutional Cancer Research) - Series A
LOC Morgan Guaranty Trust Company 07/01/13 4.60 3,600,000 A1+
1,000,000 Philadelphia, PA HEFA (Childrens' Hospital of Philadelphia) 03/01/27 4.60 1,000,000 VMIG-1 A1+
800,000 Philadelphia, PA Hospital & Higher Educational Facility HRB
(Friends Hospital) - Series A (b)
LOC PNC Bank, N.A. 03/01/06 4.40 800,000
7,350,000 Phoenix, AZ IDA MHRB Refunding
(Bell Square Apartments Project) - Series 1995
LOC General Electric Capital Corporation 06/01/25 4.40 7,350,000 A1+
3,500,000 Phoenix, AZ IDA MHRB Refunding
(Paradise Lake Apartments Project) - Series 1995
LOC General Electric Capital Corporation 07/01/25 4.40 3,500,000 A1+
4,670,000 Pinellas County, FL Health Facilities (St. Mark's Village Project)
LOC Bank of America 03/01/17 4.35 4,670,000 A1+
3,500,000 Pinellas County, FL HFA MHRB (Fixbridge Apartments) - Series A
Collateralized by Federal National Mortgage Association 06/15/25 4.35 3,500,000 A1+
1,100,000 Pitkin County IDRB (Aspen Skiing Co. Project)
LOC Bank One 04/01/16 4.65 1,100,000 A1+
</TABLE>
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
--------------------------------------------------------------------------------
DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
OCTOBER 31, 2000
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- -------
Variable Rate Demand Instruments (c) (Continued)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,300,000 Port of Corpus Christi, TX (Reynolds Metals Co. Project)
LOC Westdeutche Landesbank 09/01/14 4.35% $ 1,300,000 P1 A1+
50,000 Portsmouth, VA IDA (Fairwood Homes Project)
LOC Bank of America 11/01/27 4.35 50,000 A1+
2,500,000 Prince George County, MD EDC RB (b)
LOC Fleet National Bank & Trust 09/30/15 6.17 2,500,000
2,100,000 Raleigh Durham, NC Airport Authority
(American Airlines) - Series 1995B
LOC Bank of America 11/01/15 4.65 2,100,000 A1+
950,000 Richmond, VA Capital Region Airport
(Richmond International Airport)
Insured by AMBAC Indemnity Corp. 07/01/25 4.40 950,000 VMIG-1 A1+
145,000 Richmond, VA IDA RB (Union University)
LOC Bank of America 12/01/07 4.35 145,000 A1+
3,000,000 Roanoke, VA IDA Hospital (Carilion Health System) 07/01/27 4.60 3,000,000 VMIG-1 A1+
2,900,000 Salina, KS (Dillards Project) (b)
LOC Bank of America 12/01/14 4.55 2,900,000
4,300,000 San Antonio, TX IDA (Rivercenter Project) (b)
LOC PNC Bank, N.A. 12/01/12 4.40 4,300,000
2,130,000 Sarpy County, NE PCRB (Allied Signal, Inc. Project) - Series 1995 07/01/13 4.50 2,130,000 A1
1,200,000 Southgate, MI EDC EDRB (Trust Realty Corporation Project)
LOC Bankers Trust Company 10/01/18 4.65 1,200,000 A1
5,100,000 State of Ohio Environmental Improvement (U.S. Steel Corp. USX)
LOC PNC Bank, N.A. 12/01/01 4.55 5,100,000 P1
2,800,000 State of Oregon (Eagle Picher Industries)
LOC ABN AMRO Bank 12/01/04 4.35 2,800,000 P1 A1+
2,475,000 St. Cloud, MN Commercial Development (Kelly Inn Project) (b)
LOC First Bank of South Dakota 04/01/13 4.35 2,475,000
570,000 Suffolk, VA Redevelopment and Housing Authority
(Oak Spring Apartments. L.L.C.)
Guaranteed by Federal Home Loan Mortgage Corporation 12/01/19 4.30 570,000 VMIG-1
5,000,000 Sunshine State Government Financing Commission RB - Series 1986
Insured by AMBAC Indemnity Corp. 07/01/16 4.25 5,000,000 VMIG-1
2,900,000 Tampa, FL Health Care Facilities
(Lifelink Foundation Inc. Project) (b)
LOC Suntrust Bank 08/01/22 4.40 2,900,000
</TABLE>
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
--------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- -------
Variable Rate Demand Instruments (c) (Continued)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 1,540,000 Terre Haute, IN EDRB (Westminster Village Terre Haute Inc.) (b)
LOC Huntington National Bank 07/01/01 4.83% $ 1,540,000
1,500,000 University Athletic Association (University Florida Stadium)
LOC Suntrust Bank 02/01/20 4.85 1,500,000 VMIG-1
1,900,000 University of North Florida Capital Improvement
LOC First Union National Bank 11/01/24 4.45 1,900,000 VMIG-1
4,700,000 University of Southern Indiana
LOC Bank One 10/01/19 4.40 4,700,000 VMIG-1 A1
1,500,000 Valdez City, AK Marine Terminal
(Exxon Pipeline Company Project) - Series 1985 10/01/25 4.60 1,500,000 P1 A1+
7,000,000 Valdez City, AK Marine Terminal TRAN - Series 1994B 05/01/31 4.40 7,000,000 VMIG-1 A1
925,000 Virginia College Building Authority (University of Richmond Project) 11/01/26 4.35 925,000 VMIG-1
1,900,000 Volusia County, FL HFA S.W. (Volusia Hospital)
LOC First Union National Bank 11/15/23 4.35 1,900,000 A1
2,200,000 Utah Pollution Control (Pacificorp Project) - Series 1991
LOC Credit Suisse First Boston 07/01/15 4.30 2,200,000 P1 A1+
1,000,000 Washington State Housing Finance
(YMCA Snohomish County Project)
LOC US Bank, N.A. 06/01/27 4.75 1,000,000 A1
------------ ------------
330,935,000 Total Variable Rate Demand Instruments 330,935,000
------------ ------------
Put Bonds (d) (5.16%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 5,000,000 Chicago, IL GO
LOC Landesbank Hessen 12/07/00 3.90% $ 5,000,000 VMIG-1 SP-1+
1,000,000 Clark County, KY PCRB
(Kentucky Power National Rural) - Series J2
LOC Cooperative Finance Corporation 04/15/01 4.30 1,000,000 VMIG-1 A1+
9,995,000 DeKalb County, GA MHRB - Series 1985L
LOC Amsouth Bank N.A. 12/01/00 3.85 9,995,000 A1+
2,500,000 Marietta, GA Housing Authority (Falls at Bells Ferry) 01/15/01 4.35 2,500,000 VMIG-1
3,000,000 Nashville & Davidson County, TN
(Vanderbuilt University) - Series 1985A 01/15/01 4.15 3,000,000 MIG-1 A1+
5,000,000 Regents of the University of Colorado
(Master Lean Purchase Agreement)
LOC Bayerische Landesbank, A.G. 07/01/01 4.45 5,000,000 VMIG-1 A1+
5,000,000 Virginia State HDA - Series B - Subseries B-1 12/07/00 4.20 5,000,000 VMIG-1
------------ ------------
31,495,000 Total Put Bonds 31,495,000
------------ ------------
</TABLE>
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
--------------------------------------------------------------------------------
DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF NET ASSETS (CONTINUED)
OCTOBER 31, 2000
================================================================================
<TABLE>
<CAPTION>
Ratings (a)
-----------------
Face Maturity Value Standard
Amount Date Yield (Note 1) Moody's & Poor's
------ ---- ----- ------ ------- --------
Revenue Bond (0.33%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 2,000,000 State of Oregon Housing and Community Services
(Single Family Mortgage Program)
Collateralized by U.S. Government Securities 11/02/00 3.85% $ 2,000,000 MIG-1
------------ ------------
2,000,000 Total Revenue Bond 2,000,000
------------ ------------
Tax Exempt Commercial Paper (12.85%)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 10,000,000 Beaver County, PA IDA (Duquesne Light Company)
Insured by AMBAC Indemnity Corp. 12/15/00 4.15% $ 10,000,000 VMIG-1 A1+
3,000,000 Broward County, FL Sales Tax Revenue CP - Series A 11/09/00 4.40 3,000,000 VMIG-1 A1+
7,800,000 Brownsville City, TX Utility System
LOC Toronto Dominion Bank 11/09/00 4.10 7,800,000 P1 A1+
5,000,000 Burke County, GA Development Authority
(Ogelthorpe Power) - Series 1998A
Insured by AMBAC Indemnity Corp. 11/13/00 4.10 5,000,000 MIG-1 A1+
2,800,000 Hampton, VA IDA (Sentara Health System) 11/13/00 4.10 2,800,000 VMIG-1 A1+
200,000 Hampton, VA IDA (Sentara Health System) 11/16/00 4.20 199,998 VMIG-1 A1+
5,900,000 Intermountain Power Agency - Series 1997 02/20/01 4.30 5,900,000 A1
11,000,000 Lee County, FL Hospital Board (Lee Memorial Hospital Project) 12/05/00 4.35 11,000,000 VMIG-1 A1+
2,000,000 Long Island Power Authority
(Electric System Subordinated) - Series 3
LOC Bayerische Landesbank, A.G./Westdeutche Landesbank 11/07/00 4.10 2,000,000 VMIG-1 A1+
1,800,000 Maryland HEFA (John Hopkins Hospital) - Series A 02/22/01 4.25 1,800,000 P1 A1+
8,500,000 Mt Vernon, IN Pollution Control & Solid Waste Disposal RB
(General Electric) 11/06/00 4.25 8,500,000 P1 A1+
10,000,000 Rochester City, MN (Mayo Foundation) 12/13/00 4.00 10,000,000 A1+
8,000,000 State of Wisconsin GO - Series B 11/06/00 4.25 8,000,000 P1 A1+
2,500,000 State of Wisconsin GO - Series B 12/06/00 4.25 2,500,000 P1 A1+
------------ ------------
78,500,000 Total Tax Exempt Commercial Paper 78,499,998
------------ ------------
Total Investments (99.54%) (Cost $608,018,109+) $608,018,109
Cash and Other Assets, Net of Liabilities (0.46%) 2,836,343
------------
Net Assets (100.00%) $610,854,452
============
Net asset value, offering and redemption price per share:
Class A shares, 177,265,139 Shares Outstanding (Note 3) $ 1.00
============
Class B shares, 431,840,421 Shares Outstanding (Note 3) $ 1.00
============
Thornburg shares, 1,941,948 Shares Outstanding (Note 3) $ 1.00
============
+ Aggregate cost for federal income tax purposes is identical.
</TABLE>
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
--------------------------------------------------------------------------------
================================================================================
FOOTNOTES:
(a) Unless the variable rate demand instruments are assigned their own ratings,
the ratings are those of the holding company of the bank whose letter of
credit guarantees the issue or the insurance company who insures the issue.
All letters of credit and insurance are irrevocable and direct pay covering
both principal and interest. Certain issuers have either a line of credit,
a liquidity facility, a standby purchase agreement or some other financing
mechanism to ensure the remarketing of the securities. This is not a
guarantee and does not serve to insure or collateralize the issue. P1 and
A1+ are the highest ratings assigned for tax exempt commercial paper.
(b) Securities that are not rated which the Fund's Board of Directors has
determined to be of comparable quality to the rated securities in which the
Fund invests.
(c) Securities payable on demand at par including accrued interest (usually
with seven days notice) and unconditionally secured as to principal and
interest by a bank letter of credit. The interest rates are adjustable and
are based on bank prime rates or other interest rate adjustment indices.
The rate shown is the rate in effect at the date of this statement.
(d) The maturity date indicated for the put bonds is the next put date.
<TABLE>
<CAPTION>
KEY:
<S> <C> <C> <C> <C> <C>
BAN = Bond Anticipation Note HFFA = Health Facility Finance Authority
COPS = Certificate of Participations HRB = Hospital Revenue Bond
CP = Commercial Paper IDA = Industrial Development Authority
EDA = Economic Development Authority IDFA = Industrial Development Finance Authority
EDC = Economic Development Corporation IDRB = Industrial Development Revenue Bond
EDFA = Economic Development Finance Authority LOC = Letter of Credit
EDRB = Economic Development Revenue Bond MHRB = Multifamily Housing Revenue Bond
FGIC = Financial Guaranty Insurance Company PCRB = Pollution Control Revenue Bond
FSA = Financial Security Assurance RAN = Revenue Anticipation Note
GAN = Grant Anticipation Note RB = Revenue Bond
GO = General Obligation TAN = Tax Anticipation Note
HDA = Health Development Authority TAW = Tax Anticipation Warrant
HEFA = Hospital & Education Finance Authority TRAN = Tax and Revenue Anticipation Note
HFA = Housing Finance Authority
</TABLE>
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
--------------------------------------------------------------------------------
DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 2000
================================================================================
<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C>
Income:
Interest................................................................................ $ 28,174,648
---------------
Expenses: (Note 2)
Investment management fee............................................................... 2,228,942
Administration fee...................................................................... 1,440,239
Distribution fee (Class A).............................................................. 690,706
Distribution fee (Thornburg shares)..................................................... 4,501
Custodian expenses...................................................................... 110,647
Shareholder servicing and related shareholder expenses+................................. 608,242
Legal, compliance and filing fees....................................................... 134,444
Audit and accounting.................................................................... 138,362
Directors' fees......................................................................... 27,190
Other................................................................................... 27,421
---------------
Total expenses........................................................................ 5,410,694
Less: Expense paid indirectly (Note 2)................................................ ( 388)
---------------
Net expenses.......................................................................... 5,410,306
---------------
Net investment income....................................................................... 22,764,342
<CAPTION>
REALIZED GAIN (LOSS) ON INVESTMENTS
<S> <C>
Net realized gain (loss) on investments..................................................... ( 25,160)
---------------
Increase in net assets from operations...................................................... $ 22,739,182
===============
</TABLE>
+ Includes class specific transfer agency expenses of $378,934, $203,871 and
$3,393 for Class A, Class B and Thornburg Class, respectively.
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
--------------------------------------------------------------------------------
DAILY TAX FREE INCOME FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED OCTOBER 31, 2000 AND 1999
================================================================================
<TABLE>
<CAPTION>
2000 1999
--------------- ---------------
INCREASE (DECREASE) IN NET ASSETS
<S> <C> <C>
Operations:
Net investment income......................................... $ 22,764,342 $ 16,182,556
Net realized gain (loss) on investments....................... ( 25,160) -0-
--------------- ---------------
Increase in net assets from operations........................ 22,739,182 16,182,556
Dividends to shareholders from net investment income
Class A....................................................... ( 8,434,402)* ( 9,004,964)*
Class B....................................................... ( 14,270,388)* ( 7,177,592)*
Thornburg shares.............................................. ( 59,552)* -0-
Capital share transactions (Note 3)
Class A....................................................... ( 145,922,922) ( 40,209,783)
Class B....................................................... 140,052,800 61,276,586
Thornburg shares.............................................. 1,941,948 -0-
--------------- ---------------
Total increase (decrease)................................. ( 3,953,334) 21,066,803
Net assets:
Beginning of year............................................. 614,807,786 593,740,983
--------------- ---------------
End of year................................................... $ 610,854,452 $ 614,807,786
=============== ===============
</TABLE>
* Designated as exempt-interest dividends for federal income tax purposes.
--------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
--------------------------------------------------------------------------------
DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS
================================================================================
1. Summary of Accounting Policies.
Daily Tax Free Income Fund, Inc. is a no-load, diversified, open-end management
investment company registered under the Investment Company Act of 1940. The Fund
is a short term, tax exempt money market fund. The Fund has three classes of
stock authorized, Class A, Class B and Thornburg shares. The Class A and
Thornburg shares are subject to a service fee pursuant to the Distribution and
Service Plan. The Class B shares are not subject to a service fee. Additionally,
the Fund may allocate among its classes certain expenses to the extent allowable
to specific classes, including transfer agent fees, government registration
fees, certain printing and postage costs, and administrative and legal expenses.
Class specific expenses of the Fund were limited to distribution fees and
transfer agent expenses. In all other respects, the Class A, Class B and
Thornburg shares represent the same interest in the income and assets of the
Fund. Distribution of Class B shares commenced November 23, 1992. Thornburg
shares commenced on February 8, 2000. The Fund's financial statements are
prepared in accordance with accounting principles generally accepted in the
United States of America for investment companies as follows:
a) Valuation of Securities -
Investments are valued at amortized cost. Under this valuation method, a
portfolio instrument is valued at cost and any discount or premium is
amortized on a constant basis to the maturity of the instrument. The
maturity of variable rate demand instruments is deemed to be the longer of
the period required before the Fund is entitled to receive payment of the
principal amount or the period remaining until the next interest rate
adjustment.
b) Federal Income Taxes -
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its tax exempt and taxable income to its shareholders. Therefore, no
provision for federal income tax is required.
c) Dividends and Distributions -
Dividends from investment income (excluding capital gains and losses, if
any, and amortization of market discount) are declared daily and paid
monthly. Distributions of net capital gains, if any, realized on sales of
investments are made after the close of the Fund's fiscal year, as declared
by the Fund's Board of Directors.
d) Use of Estimates -
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that effect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported
amounts of increases and decreases in net assets from operations during the
reporting period. Actual results could differ from those estimates.
e) General -
Securities transactions are recorded on a trade date basis. Interest income
is accrued as earned. Realized gains and losses from securities
transactions are recorded on the identified cost basis.
2. Investment Management Fees and Other Transactions with Affiliates.
Under the Investment Management Contract, the Fund pays an investment management
fee to Reich & Tang Asset Management L.P. (Manager) at the annual rate of .325%
of the Fund's average daily net assets up to $750 million plus .30% of such
assets in excess of $750 million.
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
================================================================================
2. Investment Management Fees and Other Transactions with Affiliates
(Continued).
Pursuant to an Administrative Services Agreement, the Fund pays to the Manager
an annual fee of .21% of the Fund's average daily net assets up to $1.25
billion, plus .20% of such assets in excess of $1.25 billion but not in excess
of $1.5 billion, plus .19% of such assets in excess of $1.5 billion.
Pursuant to a Distribution and Service Plan adopted under Securities and
Exchange Commission Rule 12b-1, the Fund and Reich & Tang Distributors, Inc.
(the Distributor) entered into a Distribution Agreement and a Shareholder
Servicing Agreement, with respect to the Class A and Thornburg shares of the
Fund. For its services under the Shareholder Servicing Agreement, the
Distributor receives from the Fund, a service fee equal to .25% of the Fund's
average daily net assets with respect only to Class A and Thornburg shares.
There were no additional expenses borne by the Fund pursuant to the Distribution
and Service Plan.
Fees are paid to Directors who are unaffiliated with the Manager on the basis of
$6,000 per annum plus $750 per meeting attended.
Included in the Statement of Operations under the caption "Shareholder servicing
and related shareholder expenses" are fees of $342,954 paid to Reich & Tang
Services, Inc., an affiliate of the Manager as shareholder servicing agent for
the Fund. Also, included under the same caption are expense offsets of $388.
3. Capital Stock.
At October 31, 2000, 20,000,000,000 shares of $.001 par value stock were
authorized and capital paid in amounted to $610,880,395. Transactions in capital
stock, all at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
Year Year
Ended Ended
CLASS A October 31, 2000 October 31, 1999
------- ---------------- ----------------
<S> <C> <C>
Sold 1,018,747,933 513,422,609
Issued on reinvestment of dividends....... 7,101,471 7,876,240
Redeemed.................................. ( 1,171,772,326) ( 561,508,632)
-------------- --------------
Net increase (decrease)................... ( 145,922,922) ( 40,209,783)
============== ==============
CLASS B
-------
Sold...................................... 2,563,170,854 576,831,470
Issued on reinvestment of dividends....... 13,419,819 6,991,247
Redeemed.................................. ( 2,436,537,873) ( 522,546,131)
-------------- --------------
Net increase (decrease)................... 140,052,800 61,276,586
============== ==============
<CAPTION>
February 8, 2000
(Commencement of Offering) to
THORNBURG SHARES October 31, 2000
---------------- ----------------
<S> <C>
Sold...................................... 23,168,273
Issued on reinvestment of dividends....... 56,709
Redeemed.................................. ( 21,283,034)
--------------
Net increase (decrease)................... 1,941,948
==============
</TABLE>
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
4. Sales of Securities.
Accumulated undistributed realized losses at October 31, 2000 amounted to
$25,943. Such losses represent tax basis net capital losses which may be carried
forward to offset capital gains. Such losses expire through October 31, 2008.
5. Financial Highlights.
<TABLE>
<CAPTION>
Year Ended October 31,
----------------------------------------------------------
CLASS A 2000 1999 1998 1997 1996
------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
(for a share outstanding throughout the year)
Net asset value, beginning of year............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income....................... 0.031 0.024 0.029 0.031 0.031
Less distributions:
Dividends from net investment income........ ( 0.031) ( 0.024) ( 0.029) ( 0.031) ( 0.031)
-------- -------- -------- -------- --------
Net asset value, end of year................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return................................... 3.17% 2.42% 2.92% 3.08% 3.09%
Ratios/Supplemental Data
Net assets, end of year (000).................. $ 177,209 $323,100 $ 363,295 $ 389,897 $ 448,647
Ratios to average net assets:
Expenses+................................... 0.99% 0.98% 0.94% 0.91% 0.90%
Net investment income....................... 3.05% 2.39% 2.89% 3.03% 3.05%
Expenses paid indirectly.................... 0.00% 0.00% 0.00% 0.00% 0.01%
+ Includes expenses paid indirectly.
</TABLE>
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
================================================================================
5. Financial Highlights. (Continued)
<TABLE>
<CAPTION>
Year Ended October 31,
-------------------------------------------------------------
CLASS B 2000 1999 1998 1997 1996
------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
(for a share outstanding throughout the year)
Net asset value, beginning of year............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income....................... 0.035 0.027 0.032 0.033 0.033
Less distributions:
Dividends from net investment income........ ( 0.035) ( 0.027) ( 0.032) ( 0.033) ( 0.033)
-------- -------- -------- -------- --------
Net asset value, end of year................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return................................... 3.52% 2.74% 3.21% 3.34% 3.35%
Ratios/Supplemental Data
Net assets, end of year (000).................. $ 431,704 $ 291,708 $ 230,446 $ 173,339 $ 160,986
Ratios to average net assets:
Expenses+................................... 0.65% 0.67% 0.67% 0.66% 0.66%
Net investment income....................... 3.50% 2.71% 3.15% 3.29% 3.30%
Expenses paid indirectly.................... 0.00% 0.00% 0.00% 0.00% 0.01%
<CAPTION>
February 8, 2000
(Commencement of Offering) to
THORNBURG SHARES October 31, 2000
---------------- ----------------
<S> <C>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period........... $ 1.00
---------
Income from investment operations:
Net investment income....................... 0.024
Less distributions:
Dividends from net investment income........ ( 0.024)
---------
Net asset value, end of period................. $ 1.00
=========
Total Return................................... 2.43%*
Ratios/Supplemental Data
Net assets, end of period (000)................ $ 1,941
Ratios to average net assets:
Expenses+................................... 0.99%**
Net investment income....................... 3.05%**
</TABLE>
* Not Annualized
** Annualized
+ Includes expenses paid indirectly.
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
DAILY TAX FREE INCOME FUND, INC.
REPORT OF INDEPENDENT ACCOUNTANTS
================================================================================
To The Board of Directors and Shareholders
Daily Tax Free Income Fund, Inc.
In our opinion, the accompanying statement of net assets, 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
the Daily Tax Free Income Fund, Inc. (the "Fund") at October 31, 2000, the
results of its operations for the year then ended and, the changes in its net
assets and the financial highlights for each of the two years in the period then
ended, in conformity with accounting principles generally accepted in the United
States of America. 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 of America 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 October 31, 2000 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion. The financial highlights for each of the three years in the period
ended October 31, 1998, were audited by other independent accountants whose
report dated December 4, 1998 expressed an unqualified opinion on those
statements.
PricewaterhouseCoopers LLP
New York, NY
December 1, 2000
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
------------------------------------------------------
This report is submitted for the general information
of the shareholders of the Fund. It is not
authorized for distribution to prospective investors
in the Fund unless preceded or accompanied by an
effective prospectus, which includes information
regarding the Funds objectives and policies,
experience of its management, marketability of
shares, and other information.
------------------------------------------------------
Daily Tax Free Income Fund, Inc.
600 Fifth Avenue
New York, New York 10020
Manager
Reich & Tang Asset Management L.P.
600 Fifth Avenue
New York, New York 10020
Custodian
State Street Kansas City
801 Pennsylvania
Kansas City, Missouri 64105
Transfer Agent &
Dividend Disbursing Agent
Reich & Tang Services, Inc.
600 Fifth Avenue
New York, NY 10020
DTF1000A
--------------------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
DAILY
TAX FREE
INCOME
FUND, INC.
Annual Report
October 31, 2000
--------------------------------------------------------------------------------
<PAGE>
