Supplement, dated September 5, 1996, to the prospectus, dated February 1, 1996,
of Seligman New Jersey Tax-Exempt Fund, Inc., Seligman Pennsylvania
Tax-Exempt Fund Series, Seligman Tax-Exempt Fund Series, Inc. and
Seligman Tax-Exempt Series Trust (each, a "Fund")
Sales to Non-Employee Benefit Plans. The following amends the Sales
Load Schedule set forth in the Funds' prospectus with respect to Class A shares,
which currently provides that purchases of $4,000,000 or more are made at net
asset value without the imposition of a front-end sales load ("NAV sales"). The
schedule also currently provides that broker/dealers will receive a fee of .15%
of NAV sales.
Effective immediately, the NAV sales purchase amount threshold is
reduced to $1,000,000. Shares acquired at net asset value pursuant to the
foregoing will be subject to a contingent deferred sales load ("CDSL") of 1.00%
if the shares are redeemed within 18 months. Broker/dealers will receive, in
lieu of the .15% fee noted above, a fee payable directly from Seligman Financial
Services, Inc., from its own resources, calculated as follows: 1.00% of NAV
sales up to but not including $2 million; .80% of NAV sales from $2 million up
to but not including $3 million; .50% of NAV sales from $3 million up to but not
including $5 million and .25% of NAV sales from $5 million and above. The
calculation of the fee will be based on assets held by a "single person" as
defined in the Funds' prospectus. The application of CDSLs is described in the
prospectus under "Purchase of Shares-Contingent Deferred Sales Load."
Sales to Employee Benefit Plans. The following replaces the Funds'
policy with respect to (i) net asset value sales for "eligible employee benefit
plans" (as defined in the Funds' prospectus under "Special Programs") which have
at least $1 million invested in the Seligman Group of Mutual Funds or at least
50 eligible employees to whom such plan is made available and (ii) additional
compensation paid to broker/dealers by Seligman Financial Services, Inc. on
sales of Fund shares to eligible employee benefit plans as described under
"Class A Shares-Initial Sales Load" in the Funds' prospectus.
Each Fund may sell Class A shares at net asset value to eligible
employee benefit plans of employees who have at least (i) $500,000 invested in
the Seligman Group of Mutual Funds or (ii) 50 eligible employees to whom such
plan is made available. Section 403(b) plans sponsored by public educational
institutions are not eligible for net asset value purchases based on the
aggregate investment made by the plan or number of eligible employees. Employee
benefit plans eligible for net asset sales, as described above, will be subject
to a CDSL of 1.00% for terminations at the plan level only, within 18 months of
sales.
Seligman Financial Services, Inc. shall pay broker/dealers, from its
own resources, an additional fee on assets of certain Class A shares of the
Seligman Mutual Funds, including the Funds, participating in an eligible
employee benefit plan that are attributable to the particular broker/dealer. The
shares eligible for the fee are those on which an initial front-end sales load
was not paid because the plan meets the standards for net asset value sales, as
described in the foregoing paragraph. The payment is based on cumulative sales
during a calendar year, or portion thereof. The payment schedule, for each
calendar year, is as follows: 1.00% of sales up to but not including $2 million;
.80% of sales from $2 million up to but not including $3 million; .50% of sales
from $3 million up to but not including $5 million; and .25% of sales from $5
million and above.
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