Prospectus Supplement 45689 8/98
dated August 1, 1998 to:
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PUTNAM ARIZONA TAX EXEMPT INCOME FUND (THE "ARIZONA FUND")
PUTNAM FLORIDA TAX EXEMPT INCOME FUND (THE "FLORIDA FUND")
PUTNAM MASSACHUSETTS TAX EXEMPT INCOME FUND (THE "MASSACHUSETTS
FUND")
PUTNAM MICHIGAN TAX EXEMPT INCOME FUND (THE "MICHIGAN FUND")
PUTNAM MINNESOTA TAX EXEMPT INCOME FUND (THE "MINNESOTA FUND")
PUTNAM NEW JERSEY TAX EXEMPT INCOME FUND (THE "NEW JERSEY FUND")
PUTNAM OHIO TAX EXEMPT INCOME FUND (THE "OHIO FUND")
PUTNAM PENNSYLVANIA TAX EXEMPT INCOME FUND (THE "PENNSYLVANIA
FUND")
Prospectus dated September 30, 1997
On July 13, 1998, the Trustees voted to reduce temporarily the
management fees for the Minnesota, Ohio and Arizona funds. The
annual management fee rate for the Minnesota and Ohio funds will
be reduced by 0.10% to 0.50%, and the management fee rate for the
Arizona fund will be reduced by 0.20% to 0.40%. These temporary
fee reductions will go into effect on August 1, 1998 and are
scheduled to remain in effect until January 31, 2000. However,
the Trustees retain the ability to modify these reductions at any
time. Shareholders will be notified in the event of any such
change, and the prospectus would be revised.
As a result of the change, the section "Expenses summary - Annual
operating expenses" on pages 5 and 6 of the prospectus that
specifically relates to the Arizona, Minnesota and Ohio funds is
replaced with the following:
ANNUAL FUND OPERATING EXPENSES
(as a percentage of average
net assets)
TOTAL FUND
MANAGEMENT 12B-1 OTHER OPERATING
FEES FEES EXPENSES EXPENSES
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Arizona fund
Class A 0.40% 0.20% 0.19% 0.79%
Class B 0.40% 0.85% 0.19% 1.44%
Class M 0.40% 0.50% 0.19% 1.09%
Minnesota fund
Class A 0.50% 0.20% 0.21% 0.91%
Class B 0.50% 0.85% 0.21% 1.56%
Class M 0.50% 0.50% 0.21% 1.21%
Ohio fund
Class A 0.50% 0.20% 0.18% 0.88%
Class B 0.50% 0.85% 0.18% 1.53%
Class M 0.50% 0.50% 0.18% 1.18%
The tables are provided to help you understand the expenses of
investing and your share of fund operating expenses. The
expenses shown in the table do not reflect the application of
credits that reduce fund expenses. Without the fee reductions,
the management fees would have been 0.60% for each fund, and the
total fund operating expenses for the class A, B and M shares
would have been 0.99%, 1.64% and 1.29%,respectively, for the
Arizona fund; 0.99%, 1.64% and 1.29%, respectively, for the
Minnesota fund; and 0.98%, 1.63% and 1.28%, respectively, for the
Ohio fund.
EXAMPLES
Your investment of $1,000 would incur the following expenses,
assuming 5% annual return and, except as indicated, redemption at
the end of each period:
1 3 5 10
year years years years
Arizona fund
Class A $55 $72 $89 $141
Class B $65 $76 $99 $155 *
Class B (no redemption) $15 $46 $79 $155 *
Class M $43 $66 $91 $161
1 3 5 10
year years years years
Minnesota fund
Class A $56 $75 $95 $154
Class B $66 $79 $105 $168 *
Class B (no redemption) $16 $49 $85 $168 *
Class M $44 $70 $97 $174
1 3 5 10
year years years years
Ohio fund
Class A $56 $74 $94 $151
Class B $66 $78 $103 $165 *
Class B (no redemption) $16 $48 $83 $165 *
Class M $44 $69 $95 $171
The examples do not represent past or future expense levels.
Actual expenses may be greater or less than those shown. Federal
regulations require the examples to assume a 5% annual return,
but actual annual return varies.
* Reflects conversion of class B shares to class A shares
(which pay lower ongoing expenses) approximately eight years
after purchase. See "Alternative sales arrangements."
