PUTNAM ARIZONA TAX EXEMPT INCOME FUND
PUTNAM FLORIDA TAX EXEMPT INCOME FUND
PUTNAM MASSACHUSETTS TAX EXEMPT INCOME FUND
PUTNAM MICHIGAN TAX EXEMPT INCOME FUND
PUTNAM MINNESOTA TAX EXEMPT INCOME FUND
PUTNAM NEW JERSEY TAX EXEMPT INCOME FUND
PUTNAM OHIO TAX EXEMPT INCOME FUND
PUTNAM PENNSYLVANIA TAX EXEMPT INCOME FUND
Prospectus Supplement dated December 13, 1995 to
Prospectus dated October 1, 1995
1. The information in the table under the heading "Annual fund
operating expenses" on page 5 of the prospectus is supplemented
as follows:
The Michigan fund incurred 12b-1 fees of 0.20% of average net
asset with respect to its class A shares in the most recent
fiscal year.
2. The fourth sentence in the paragraph following the table on
page 5 of the prospectus is replaced with the following:
For the Florida fund, actual management fees for class
A and class B shares were 0.55%, actual "Other
expenses" were 0.10% and 0.09%, respectively, and
actual total operating expenses were 0.83% and 1.42%,
respectively.
3. The table on page 10 of the prospectus is replaced with the
following:
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout the period)
FOR THE PERIOD FOR THE
MAY 1, 1995 ELEVEN JANUARY 4, 1993
(COMMENCEMENT MONTHS YEAR (COMMENCEMENT
OF OPERATIONS) TO ENDED ENDEDOF OPERATIONS) TO
MAY 31 MAY 31 JUNE 30 JUNE 30
1995(+) 1995* 1994 1993
Class M Class B
NET ASSET VALUE,
BEGINNING OF PERIOD $8.87 $8.76 $9.53 $9.17
INVESTMENT OPERATIONS
Net investment income .04 .40 .44 .21
Net realized and
unrealized gain (loss)
on investments .25 .36 (.66) .36
TOTAL FROM INVESTMENT
OPERATIONS .29 .76 (.22) .57
LESS DISTRIBUTIONS:
From net investment
income (.04) (.39) (.44) (.21)
In excess of net
investment income -- (.01) -- --
From net realized gain
on investments -- -- (.09) --
In excess of net realized
gain on investments -- -- (.02) --
TOTAL DISTRIBUTIONS (.04) (.40) (.55) (.21)
NET ASSET VALUE,
END OF PERIOD $9.12 $9.12 $8.76 $9.53
TOTAL INVESTMENT RETURN
AT NET ASSET
VALUE (%)(b) 3.28(c) 9.06(c) (2.55) 12.84(c)
NET ASSETS, END OF
PERIOD (in thousands) $1 $44,581 $36,930 $17,881
Ratio of expenses to
average net assets (%) .10(c) 1.42(c) 1.51 .78(c)
Ratio of net investment
income to average
net assets (%) .45(c) 4.62(c) 4.74 2.21(c)
Portfolio turnover (%) 61.46 61.46 64.83 106.69
<PAGE>
FINANCIAL HIGHLIGHTS (continued)
For the
eleven
months
ended
May 31 Year ended June 30 August 24, 1990
(commencement
of operations) to
June 30
1995* 1994 1993 1992 1991
Class A
$8.77 $9.53 $9.08 $8.65 $8.50
.46 .50 .56(a) .60(a) .52(a)
.35 (.65) .53 .45 .15
.81 (.15) 1.09 1.05 .67
(.45) (.50) (.56) (.60) (.52)
(.01) -- -- -- --
-- (.09) (.08) (.02) --
-- (.02) -- -- --
(.46) (.61) (.64) (.62) (.52)
$9.12 $8.77 $9.53 $9.08 $8.65
9.58(c) (1.79) 12.44 12.57 9.46(c)
$271,309$276,245$278,039 $195,963$109,739
.83(c) .91 .77(a) .60(a) .41(a)(c)
5.24(c) 5.38 5.94(a) 6.73(a) 5.94(a)(c)
61.46 64.83 106.69 72.7346.72(c)
* The fiscal year end has changed from June 30 to May 31.
+ Per share net investment income has been determined on the
basis of the weighted average number of shares outstanding
during the period.
(a) Reflects an absorption of expenses incurred by the fund
and an expense limitation applicable during the period. As
a result of this absorbtion and the limitations, expenses of
the fund for the years ended June 30, 1992 and the period
ended June 30, 1991, reflect a reduction of $0.02 and
$0.04 per share, respectively. For the year ended June 30,
1993, expenses reflect a reduction of less than $0.01 per
share.
(b) Total investment return assumes dividend reinvestment and
does not reflect the effect of sales charges.
(c) Not annualized.
<PAGE>
4. The third paragraph under the heading "How the funds pursue
their objectives" on page 17 of the prospectus is replaced with
the following:
Under current law, to the extent distributions by a fund are
derived from interest on tax-exempt securities (as defined
with respect to such fund), such distributions will
generally be exempt from federal income tax and personal or
gross income tax in the relevant state (other than any
applicable federal or state alternative minimum tax or any
state minimum corporate income tax). Certain states may
impose additional requirements on the composition of a
fund's portfolio in order for distributions from that fund
to be exempt from the foregoing state taxes. Florida does
not impose an individual income tax but imposes certain
additional requirements on the composition of the Florida
fund for shares of that fund to be exempt from the Florida
intangibles tax. See "How a fund makes distributions to its
shareholders; tax information."
<PAGE>
5. The second sentence in the first paragraph under the heading
"Alternative minimum tax" on page 19 of the prospectus is
replaced with the following:
An investment in a fund may subject corporate shareholders
to the federal alternative minimum tax, because a portion of
tax-exempt income is generally included in the alternative
minimum taxable income of corporations.
6. The first paragraph under the heading "Tax-exempt
securities" on page 19 of the prospectus is replaced with the
following:
The term "tax-exempt securities," when used with respect to
a particular fund, includes obligations of a state and its
political subdivisions and their agencies, instrumentalities
or other governmental units, the interest on which, in the
opinion of bond counsel, is exempt from federal income tax
and (except for Florida, which has no personal income tax)
personal or gross income tax of the relevant state.
7. Effective December 1, 1995, any applicable contingent
deferred sales charge ("CDSC") will be waived on redemptions of
shares following the death or post-purchase disability of a
settlor of a living trust account. Up to 12% of the value of
shares subject to a systematic withdrawal plan may also be
redeemed each year without a CDSC.
8. The first paragraph under the heading "Minnesota" on page 45
of the prospectus is replaced with the following:
Minnesota. In 1995 Minnesota enacted a statement of intent
that interest on obligations of Minnesota and its political
subdivisions and Indian tribes be included in net income of
individuals, estates and trusts for Minnesota income tax
purposes if it is judicially determined that Minnesota's
exemption of such interest and taxation of interest on
obligations of other statesand their political subdivisions
and Indian tribes unlawfully discriminates against
interstate commerce. This provision applies to taxable
years that begin during or after the calendar year in which
any such determination becomes final. Putnam Management is
not aware of any decision in which a federal court has held
that a state's exemption of interest on its own bonds or
those of its political subdivisions or Indian tribes and
taxation of interest on the bonds of other states or their
political subdivisions or Indian tribes unlawfully
discriminates against interstate commerce or otherwise
contravenes the United States Constitution. However, there
can be no assurance that interest on the Minnesota bonds
held by the Minnesota fund would not become taxable under
this Minnesota statutory provision.
