- ------------------------------------------------------------
Seligman
Pennsylvania
Tax-Exempt
Fund
- ------------------------------------------------------------
10th Annual Report
September 30, 1995
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(JWS LOGO GOES HERE)
<PAGE>
To the Shareholders
We are pleased to update you on Seligman Pennsylvania Tax-
Exempt Fund for the fiscal year ended September 30, 1995.
During the past 12 months, total dividends for Class A
shares were $0.381 per share. Net asset value of Class A
shares was $7.79 per share on September 30, up from $7.55 a
year ago. For Class D shares, total dividends were $0.309
per share. Net asset value of Class D shares was $7.78 per
share on September 30, up from $7.54 a year ago. A capital
gain distribution of $0.131 per share was paid on November
17, 1994, to Class A and D shareholders of record November
10, 1994.
The past 12 months have been a particularly turbulent period
for fixed-income markets. During the fourth quarter of 1994,
a strengthening economy continued to fuel fears of an
acceleration in the inflation rate. By mid-November,
municipal bond yields had climbed to their highest levels
since 1991. Investors, until now conspicuous by their
absence, were attracted by higher yields and cautiously
began buying. The municipal market, however, was still
trying to absorb an oversupply of inventory as well as
attempting to overcome the aftershocks of the Orange County,
California, debacle and thus improved at a slower rate than
the U.S. Treasury market. As 1994 came to a close, the bond
market recovery was firmly under way. The Federal Reserve
Board's (FRB) decision on February 1 to once again raise the
federal funds rate helped to sustain the rally by boosting
investor confidence in the FRB's ability to contain
inflation.
The U.S. economy finally began to exhibit signs of
moderating during the second quarter of 1995, spurring
further declines in long-term yields. The FRB, encouraged by
economic reports, voted on July 6 to lower the federal funds
rate in order to minimize the risk of a recession. While the
bond markets initially reacted positively to this news, it
wasn't long before the next round of economic reports proved
surprisingly robust, prompting speculation that the economy
was not as weak as believed. Long-term yields reversed their
decline and spiked sharply, dashing hopes of an imminent FRB
easing. The municipal market began to improve in late August
as signs of economic strength abated. By September 30, long-
term yields were essentially unchanged from a year ago.
For much of the past year, municipal market participants
have been focusing on tax reform legislation. Investors,
concerned about the impact on the tax-exempt status of
municipal securities, have been demanding higher yields as
compensation. Currently, long-term municipal bonds, compared
with taxable bonds, are the most attractive they have been
all year.
A discussion with your Portfolio Manager about your Fund,
along with highlights of performance, long-term investment
results, portfolio holdings, and financial statements,
follows this letter.
For any additional information about Seligman Pennsylvania
Tax-Exempt Fund, or your investment in its shares, please
write or call using the toll-free telephone numbers listed
on page 15 of this report.
By order of the Trustees,
/s/ William C. Morris
William C. Morris
Chairman
/s/ Brian T. Zino
Brian T. Zino
President
November 3, 1995
<PAGE>
<TABLE>
<CAPTION>
Seligman Pennsylvania Tax-Exempt Fund
Highlights September 30, 1995 Class A Class D
<S> <C> <C>
Net Assets (in thousands) $33,251 $426
Yield* 4.25% 3.70%
Dividends** $0.381 $0.309
Capital Gain Distributions** $0.131 $0.131
Net asset value per share $7.79 $7.78
Maximum offering price per share $8.18 $7.78
Moody's/S&P Ratings+
Aaa/AAA 69%
Aa/AA 22
A/A 7
Baa/BBB 2
Holdings by Market Sector+
Revenue Bonds 83%
General Obligation Bonds 17
Weighted Average Maturity (years) 23.6
*Current yield representing the annualized yield for the 30-
day period ended September 30, 1995.
**Represents per share amount paid or declared during the
year ended September 30, 1995.
+Percentages based on current market value of long-term holdings.
Note: The yields have been computed in accordance with
current SEC regulations and will vary, and the principal
value of an investment will fluctuate. Shares, if redeemed,
may be worth more or less than their original cost. A small
portion of the Fund's income dividends may be subject to
applicable state and local taxes, and to the federal
alternative minimum tax. Past performance is not indicative
of future investment results.
</TABLE>
<PAGE>
Annual Performance Overview
The following is a biography of your Portfolio Manager, a
discussion with him regarding Seligman Pennsylvania Tax-
Exempt Fund, and a chart and table comparing your Fund's
performance to the performance of the Lehman Brothers
Municipal Bond Index.
Your Portfolio Manager
(Photo of Thomas G. Moles goes here)
Thomas G. Moles is a Managing Director of J. & W. Seligman &
Co. Incorporated, as well as President and Senior Portfolio
Manager of Seligman Select Municipal Fund and Seligman
Quality Municipal Fund, and Vice President and Senior
Portfolio Manager of the Seligman tax-exempt mutual funds
which include 19 separate portfolios. He is responsible for
more than $2 billion in tax-exempt securities. Mr. Moles,
with more than 25 years of experience, has spearheaded
Seligman's tax-exempt efforts since joining the firm in
1983.
Factors Affecting Seligman Pennsylvania Tax-Exempt Fund
"In general, the investment environment for municipal
securities in 1995 was much more advantageous than in 1994.
Looking back, interest rates continued to move higher during
the fourth quarter of 1994 as negative market sentiment
prevailed. The net asset values on long-term municipal bond
mutual funds, including your Fund, declined as a result. The
municipal market was further impacted by the Orange County,
California, bankruptcy, which undermined confidence in the
market.
"During the first half of 1995, yields on municipal bonds
trended lower as the economy exhibited signs of moderating.
The municipal market, however, underperformed the U.S.
Treasury market due to concerns regarding tax reform. During
the third quarter, stronger-than-expected economic reports
caused a brief spike in interest rates. By September 30,
however, the overall decline in long-term yields over the
past 12 months had caused the net asset value of your Fund
to improve."
Your Manager's Investment Strategy
"For much of the past year, there has been little difference
between yields on 20-year and 30-year municipal bonds. We
took advantage of the narrow yield spread and shortened
maturities where opportunities allowed. By implementing this
strategy, the Fund was able to maintain yields while
lessening volatility.
"As the bond market gradually improved, your Fund assumed a
less defensive posture. Shorter-term prerefunded positions
were reduced and replaced with long-term bonds, as long-term
bonds generally realize greater price appreciation than
shorter-term bonds in a declining interest rate environment.
"The Fund continues to concentrate new purchases in higher-
quality municipal bonds. The market has not been offering
enough of an additional yield on lower-rated bonds to
compensate for their increased risk. In addition, the Fund
has focused on bonds issued to provide for essential
services, such as water and sewer facilities, transportation
projects, etc. These bonds generally offer increased
security because revenues derived from the projects are
often pledged as repayment for the principal and interest on
the bonds."
Looking Ahead
"The municipal market faces many challenges in the months to
come. With the Federal government shifting more and more
responsibilities to individual states, we are concerned
about the impact on state budgets. Additionally, the
possibility exists that future tax reform legislation may
affect the tax-exempt status of municipal securities. At
present, however, tax reform is not a consideration in our
decision making process. We will continue to stay abreast of
the latest developments and adjust our strategy accordingly.
Despite the challenges, we remain optimistic about the
prospects for the municipal market. We believe a moderating
economy and a vigilant Federal Reserve Board should keep
inflation in check and prevent a repeat of the dramatic
interest rate increases that occurred in 1994."
<PAGE>
Performance Comparison Chart and Table September 30, 1995
This chart compares a $10,000 hypothetical investment made
in Seligman Pennsylvania Tax-Exempt Fund Class A shares,
with and without the maximum initial sales charge of 4.75%,
since inception on July 15, 1986, through September 30,
1995, to a $10,000 hypothetical investment made in the
Lehman Brothers Municipal Bond Index (Lehman Index) for the
same periods. The performance of Seligman Pennsylvania Tax-
Exempt Fund Class D shares is not shown in this chart but is
included in the table below. It is important to keep in mind
that the Lehman Index excludes the effects of any fees or
sales charges, and does not reflect state-specific bond
market performance.
(The following table is the source data for the line chart which appears
at this point in the printed document. This table is not part of the
original printed document and is shown for reference only. The same is
also true for this descriptive paragraph.)
Seligman Pennsylvania Tax-Exempt Fund
Class A
with without
sales charge sales charge Lehman Index
7/15/86 $9,520.00 $10,000.00 $10,000.00
9/30/86 $10,204.55 $10,719.07 $10,473.92
12/31/86 $10,568.00 $11,100.84 $10,835.89
3/31/87 $10,837.64 $11,384.07 $11,098.18
6/30/87 $10,276.72 $10,794.87 $10,796.94
9/30/87 $9,774.93 $10,267.79 $10,528.56
12/31/87 $10,418.05 $10,943.33 $10,999.02
3/31/88 $10,773.33 $11,316.53 $11,377.10
6/30/88 $11,057.96 $11,615.51 $11,597.66
9/30/88 $11,358.46 $11,931.16 $11,895.03
12/31/88 $11,709.59 $12,300.00 $12,116.79
3/31/89 $11,790.00 $12,384.46 $12,197.03
6/30/89 $12,475.67 $13,104.71 $12,919.03
9/30/89 $12,440.88 $13,068.17 $12,928.02
12/31/89 $12,908.65 $13,559.53 $13,424.05
3/31/90 $12,869.35 $13,518.25 $13,484.18
6/30/90 $13,154.06 $13,817.31 $13,799.02
9/30/90 $12,955.17 $13,608.38 $13,807.10
12/31/90 $13,598.54 $14,284.20 $14,402.64
3/31/91 $13,805.08 $14,501.15 $14,728.21
6/30/91 $14,132.93 $14,845.53 $15,042.60
9/30/91 $14,690.70 $15,431.42 $15,627.20
12/31/91 $15,133.90 $15,896.97 $16,151.16
3/31/92 $15,181.72 $15,947.18 $16,199.15
6/30/92 $15,778.96 $16,574.54 $16,813.15
9/30/92 $16,165.76 $16,980.84 $17,260.52
12/31/92 $16,544.96 $17,379.16 $17,574.57
3/31/93 $17,177.21 $18,043.29 $18,227.31
6/30/93 $17,824.18 $18,722.88 $18,823.70
9/30/93 $18,543.15 $19,478.09 $19,459.94
12/31/93 $18,680.41 $19,622.28 $19,733.69
3/31/94 $17,485.45 $18,367.07 $18,650.42
6/30/94 $17,577.83 $18,464.10 $18,855.73
9/30/94 $17,615.29 $18,503.44 $18,984.94
12/31/94 $17,368.14 $18,243.84 $18,713.64
3/31/95 $18,686.54 $19,628.70 $20,035.81
6/30/95 $19,090.12 $20,052.65 $20,518.43
9/30/95 $19,474.72 $20,456.63 $21,108.36
The table below shows the average annual total returns for
the one-year, five-year, and since-inception periods through
September 30, 1995, for Seligman Pennsylvania Tax-Exempt
Fund Class A shares, with and without the maximum initial
sales charge of 4.75%, and the Lehman Index. Also included
in the table are the average annual total returns for the
one-year and since-inception periods through September 30,
1995, for Seligman Pennsylvania Tax-Exempt Fund Class D
shares, with and without the effect of the 1% contingent
deferred sales load ("CDSL") imposed on shares redeemed
within one year of purchase, and the Lehman Index.
<TABLE>
<CAPTION>
Average Annual Total Returns
Since Since
One Five Inception One Inception
Year Years 7/15/86 Year 2/1/94
-------- -------- ----------- -------- -----------
<S> <C> <C> <C> <C> <C> <C>
Seligman Pennsylvania Seligman Pennsylvania
Tax-Exempt Fund Tax-Exempt Fund
Class A with Sales Charge 5.26% 7.43% 7.50% Class D with CDSL 8.53% n/a
Class A without Sales Charge 10.55 8.49 8.08 Class D without CDSL 9.53 0.79%
Lehman Index 11.18 8.86 8.49* Lehman Index 11.18 3.43
*From 7/31/86.
</TABLE>
The performance of Class D shares will be greater than or
less than the performance shown for Class A shares, based on
the differences in sales charges and fees paid by
shareholders. Performance data quoted represent changes in
prices and assume that all distributions within the periods
are invested in additional shares. The investment return and
principal value of an investment will fluctuate so that
shares, if redeemed, may be worth more or less than their
original cost. Past performance is not indicative of future
investment results.
<PAGE>
<TABLE>
<CAPTION>
Portfolio of Investments September 30, 1995
Face Rating Market
Amount Municipal Bonds Moody's/S&P+ Value
- -------- ---------------- -------------- -------------
<C> <S> <C> <C>
$1,500,000 Allegheny County, PA Airport Rev. (Greater Pittsburgh International Airport),
6.80% due 1/1/2010* Aaa/AAA $ 1,628,220
1,000,000 Berks County Municipal Authority, PA Hospital Rev. (The Reading Hospital & Medical
Center Project), 5.70% due 10/1/2014 Aaa/AAA 986,300
1,000,000 Berks County Municipal Authority, PA Hospital Rev. (The Reading Hospital & Medical
Center Project), 6.10% due 10/1/2023 Aaa/AAA 1,003,170
1,000,000 Delaware County Authority, PA (Haverford College Rev.), 5.50% due 11/15/2023 Aaa/AAA 936,230
1,000,000 Delaware County Industrial Development Authority, PA
(Philadelphia Suburban Water Company), 6.35% due 8/15/2025* Aaa/AAA 1,015,740
1,000,000 Delaware County, PA G.O.'s, 6% due 11/15/2022 Aa/AA 994,600
1,000,000 Franklin County, PA Industrial Development Authority Hospital Rev. (The Chambersburg
Hospital Project), 6.25% due 7/1/2022 Aaa/AAA 1,020,130
1,000,000 Lehigh County, PA G.O.'s, 6.90% due 8/1/2011 Aaa/AAA 1,120,290
1,750,000 Lehigh County, PA Industrial Development Authority Pollution Control Rev.
(Pennsylvania Power & Light Company Project), 6.40% due 11/1/2021 Aaa/AAA 1,795,903
500,000 Montgomery County, PA Industrial Development Authority Pollution Control Rev.
(Philadelphia Electric Co.), 7.60% due 4/1/2021* Baa2/BBB+ 541,070
2,000,000 Pennsylvania Higher Education Assistance Agency Student Loan Rev.,
6.40% due 3/1/2022* Aaa/AAA 2,020,140
2,000,000 Pennsylvania Higher Educational Facilities Authority Rev. (Temple University),
6.50% due 4/1/2021 Aaa/AAA 2,089,140
2,000,000 Pennsylvania Housing Finance Agency (Single Family Mortgage Rev.
5.45% due 10/1/2017 Aa/AA 1,841,400
1,800,000 Pennsylvania Housing Finance Agency (Rental Housing Rev.), 6.50% due 7/1/2023 Aaa/AAA 1,841,940
2,000,000 Pennsylvania State G.O.'s, 6.50% due 11/15/2011 A1/AA- 2,122,040
1,500,000 Pennsylvania State Turnpike Commission Rev., 6% due 12/1/2017 Aaa/AAA 1,502,985
2,500,000 Philadelphia Hospitals & Higher Educational Facilities Authority, PA Hospital Rev.
(Children's Hospital of Philadelphia Project), 5% due 2/15/2021 Aa/AA 2,127,125
1,500,000 Philadelphia, PA Airport Rev., 6.10% due 6/15/2025* Aaa/AAA 1,487,625
1,000,000 Philadelphia, PA Gas Works Rev., 7% due 5/15/2020 Aaa/AAA 1,191,790
450,000 Philadelphia Redevelopment Authority, PA (Home Mortgage Rev.), 9% due 6/1/2017 NR/AA 472,009
1,500,000 Pittsburgh, PA Water & Sewer Authority Rev., 5.65% due 9/1/2025 Aaa/AAA 1,449,540
2,000,000 Pottsville Hospital Authority, PA Hospital Rev. (Daughters of Charity National
Health System--Good Samaritan Regional Medical Center), 5% due 8/15/2012 Aa/NR 1,811,080
1,500,000 University of Pittsburgh Capital Project, 6.125% due 6/1/2021 Aaa/AAA 1,515,390
-----------
Total Municipal Bonds (Cost $31,714,505)--96.5% 32,513,857
Variable Rate Demand Notes (Cost $500,000)--1.5% 500,000
Other Assets Less Liabilities--2.0% 662,811
-----------
NET ASSETS--100.0% $33,676,668
===========
- ----------------
*Interest income earned from this security is subject to the federal alternative minimum tax.
+Ratings have not been audited by Deloitte & Touche LLP.
See notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statement of Assets and Liabilities September 30, 1995
<S> <C> <C>
Assets :
Investments, at value:
Long-term holdings (cost $31,714,505) $32,513,857
Short-term holdings (cost $500,000) 500,000 $33,013,857
-----------
Cash 204,504
Interest receivable 612,500
Expenses prepaid to shareholder service agent 19,729
-----------
Total Assets 33,850,590
-----------
Liabilities:
Dividends payable 55,710
Payable for Shares of Beneficial Interest repurchased 25,752
Accrued expenses, taxes, and other 92,460
-----------
Total Liabilities 173,922
-----------
Net Assets $33,676,668
============
Composition of Net Assets:
Shares of Beneficial Interest, at par ($.001 par value; unlimited shares authorized;
4,323,372 shares outstanding):
Class A $ 4,269
Class D 55
Additional paid-in capital 32,473,885
Undistributed net realized gain 399,107
Net unrealized appreciation of investments 799,352
-----------
Net Assets $33,676,668
===========
Net Asset Value per share:
Class A ($33,250,511 (divided by) 4,268,629 shares) $7.79
=====
Class D ($426,157 (divided by) 54,743 shares) $7.78
=====
- ----------------
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations For the year ended September 30, 1995
<S> <C> <C>
Investment income:
Interest $2,113,191
Expenses:
Management fee $ 168,672
Distribution and service fees 76,187
Shareholder account services 57,326
Auditing and legal fees 36,395
Custody and related services 27,558
Trustees' fees and expenses 23,195
Shareholder reports and communications 12,435
Registration 3,761
Miscellaneous 5,940
----------
Total expenses 411,469
----------
Net investment income 1,701,722
Net realized and unrealized gain on investments:
Net realized gain on investments 402,850
Net change in unrealized depreciation of investments 1,230,484
----------
Net gain on investments 1,633,334
----------
Increase in net assets from operations $3,335,056
==========
- ----------------
See notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets Year Ended September 30
-------------------------------
1995 1994
------------- -------------
<S> <C> <C>
Operations:
Net investment income $ 1,701,722 $ 1,869,838
Net realized gain on investments 402,850 601,610
Net change in unrealized appreciation/depreciation of investments 1,230,484 (4,456,835)
----------- -----------
Increase (decrease) in net assets from operations 3,335,056 (1,985,387)
----------- -----------
Distributions to shareholders:
Net investment income:
Class A (1,694,167) (1,867,544)
Class D (7,555) (2,294)
Net realized gain on investments:
Class A (600,438) (1,252,721)
Class D (820) --
----------- -----------
Decrease in net assets from distributions (2,302,980) (3,122,559)
----------- -----------
<CAPTION>
Shares
--------------------------
Transactions in Shares Year ended September 30
of Beneficial Interest:* --------------------------
1995 1994
----------- -----------
<S> <C> <C> <C> <C>
Net proceeds from sale of shares:
Class A 106,330 135,693 804,851 1,087,069
Class D 49,571 13,776 382,449 109,993
Shares issued in payment of dividends:
Class A 121,691 128,868 917,938 1,027,943
Class D 706 177 5,454 1,367
Exchanged from associated Funds:
Class A 31,638 47,776 235,025 384,668
Class D 1,759 -- 13,441 --
Shares issued in payment of gain distributions:
Class A 59,014 99,772 406,603 819,130
Class D 72 -- 498 --
-------- -------- ----------- -----------
Total 370,781 426,062 2,766,259 3,430,170
-------- -------- ----------- -----------
Cost of shares repurchased:
Class A (656,287) (523,413) (4,898,866) (4,152,902)
Class D (3,075) (8,243) (23,950) (62,980)
Exchanged into associated Funds--Class A (24,434) (52,019) (184,951) (416,602)
-------- -------- ----------- -----------
Total (683,796) (583,675) (5,107,767) (4,632,484)
-------- -------- ----------- -----------
Decrease in net assets from transactions
in Shares of Beneficial Interest (313,015) (157,613) (2,341,508) (1,202,314)
======== ======== ----------- -----------
Decrease in net assets (1,309,432) (6,310,260)
Net Assets:
Beginning of year 34,986,100 41,296,360
----------- -----------
End of year $33,676,668 $34,986,100
=========== ===========
- ----------------
*The Fund began offering Class D shares on February 1, 1994.
See notes to financial statements.
</TABLE>
<PAGE>
Notes to Financial Statements
1. Seligman Pennsylvania Tax-Exempt Fund (the "Fund")
offers two classes of shares. All shares existing prior to
February 1, 1994 were classified as Class A shares. Class A
shares are sold with an initial sales charge of up to 4.75%
and a continuing service fee of up to 0.25% on an annual
basis. Class D shares are sold without an initial sales
charge but are subject to a distribution fee of up to 0.75%
and a service fee of up to 0.25% on an annual basis, and a
contingent deferred sales load ("CDSL") of 1% imposed on
certain redemptions made within one year of purchase. The
two classes of shares represent interests in the same
portfolio of investments, have the same rights and are
generally identical in all respects except that each class
bears its separate distribution and certain class expenses
and has exclusive voting rights with respect to any matter
to which a separate vote of any class is required.
2. Significant accounting policies followed, all in
conformity with generally accepted accounting principles,
are given below:
a. All tax-exempt securities and other short-term holdings
maturing in more than 60 days are valued based upon
quotations provided by an independent pricing service or, in
their absence, at fair value determined in accordance with
procedures adopted by the Trustees. Short-term holdings
maturing in 60 days or less are generally valued at
amortized cost.
b. There is no provision for federal income or excise tax.
The Fund has elected to be taxed as a regulated investment
company and intends to distribute substantially all taxable
net income and net gain realized. Dividends are declared
daily and paid monthly.
c. Investment transactions are recorded on trade dates.
Identified cost of investments sold is used for both
financial statement and federal income tax purposes.
Interest income is recorded on the accrual basis. The Fund
amortizes original issue discounts and premiums paid on
purchases of portfolio securities. Discounts other than
original issue discounts are not amortized.
d. All income, expenses (other than class-specific
expenses), and realized and unrealized gains or losses are
allocated daily to each class of shares based upon the
relative value of the shares of each class. Class-specific
expenses, which include distribution and service fees and
any other items that can be specifically attributed to a
particular class, are charged directly to such class.
e. The treatment for financial statement purposes of
distributions made during the year from net investment
income or net realized gains may differ from their ultimate
treatment for federal income tax purposes. These differences
are caused primarily by differences in the timing of the
recognition of certain components of income, expense, and
capital gain for federal income tax purposes. Where such
differences are permanent in nature, they are reclassified
in the components of net assets based on their ultimate
characterization for federal income tax purposes. Any such
reclassifications will have no effect on net assets, results
of operations or net asset value per share of the Fund.
3. Purchases and sales of portfolio securities, excluding
short-term investments, for the year ended September 30,
1995, amounted to $3,902,755 and $6,969,485, respectively.
At September 30, 1995, the cost of investments for
federal income tax purposes was substantially the same as
the cost for financial reporting purposes, and the tax basis
gross unrealized appreciation and depreciation of
investments amounted to $1,246,172 and $446,820,
respectively.
4. J. & W. Seligman & Co. Incorporated (the "Manager")
manages the affairs of the Fund and provides the necessary
personnel and facilities. Compensation of all officers of
the Fund, all trustees of the Fund who are employees or
consultants of the Manager, and all personnel of the Fund
and the Manager is paid by the Manager. The Manager's fee,
calculated daily and payable monthly, is equal to 0.50% per
annum of the Fund's average daily net assets.
Seligman Financial Services, Inc. (the "Distributor"),
agent for the distribution of the Fund's shares and an
affiliate of the Manager, received concessions of $3,900
from the sale of Class A shares, after commissions of
$30,148 paid to dealers.
The Fund has an Administration, Shareholder Services
and Distribution Plan (the "Plan") with respect to Class A
shares under which service organizations can enter into
agreements with the Distributor and receive a continuing fee
of up to 0.25% on an annual basis, payable quarterly, of the
average daily net assets of the Class A shares attributable
to the particular service organizations for providing
personal services and/or the maintenance of shareholder
accounts. The Distributor charges such fees to the Fund
pursuant to the Plan. For the year ended September 30, 1995,
fees paid aggregated $74,280, or 0.22% per annum of the
average daily net assets of Class A shares.
The Fund has a Plan with respect to Class D shares
under which service organizations can enter into agreements
with the Distributor and receive a continuing fee for
providing personal services and/or the maintenance of
shareholder accounts of up to 0.25% on an annual basis of
the average daily net assets of the Class D shares for which
the organizations are responsible, and fees for providing
other distribution assistance of up to 0.75% on an annual
basis of such average daily net assets. Such fees are paid
monthly by the Fund to the Distributor pursuant to the Plan.
For the year ended September 30, 1995, fees paid amounted to
$1,907, or 1% per annum of the average daily net assets of
Class D shares.
The Distributor is entitled to retain any CDSL imposed
on certain redemptions of Class D shares occurring within
one year of purchase. For the year ended September 30, 1995,
such charges amounted to $219.
Effective April 1, 1995, Seligman Services, Inc., an
affiliate of the Manager, became eligible to receive
commissions from certain sales of Fund shares, as well as
distribution and service fees pursuant to the Plan. For the
period ended September 30, 1995, Seligman Services, Inc.
received commissions of $261 from sales of shares of the
Fund. Seligman Services, Inc. also received distribution and
service fees of $1,797, pursuant to the Plan.
Seligman Data Corp., which is owned by certain
associated investment companies, charged at cost $57,326 for
shareholder account services.
Certain officers and trustees of the Fund are officers
or directors of the Manager, the Distributor, Seligman
Services, Inc., and/or Seligman Data Corp.
Fees of $8,000 were incurred by the Fund for the legal
services of Sullivan & Cromwell, a member of which firm is a
trustee of the Fund.
The Fund has a compensation arrangement under which
trustees who receive fees may elect to defer receiving such
fees. Interest is accrued on the deferred balances. The cost
of such fees and interest is included in trustees' fees and
expenses, and the accumulated balance thereof at September
30, 1995, of $36,756 is included in other liabilities.
Deferred fees and related accrued interest are not
deductible for federal income tax purposes until such
amounts are paid.
5. Class-specific expenses charged to Class A and
Class D during the year ended September 30, 1995, which are
included in the corresponding captions of the Statement of
Operations, were as follows:
Class A Class D
--------- --------
Distribution and service fees $74,280 $1,907
Registration 854 367
Shareholder reports and
communications 355 4
<PAGE>
Financial Highlights
The Fund's financial highlights are presented below. The per
share operating performance data is designed to allow
investors to trace the operating performance, on a per share
basis, from the Fund's beginning net asset value to the
ending net asset value so that they can understand what
effect the individual items have on their investment
assuming it was held throughout the period. Generally, the
per share amounts are derived by converting the actual
dollar amounts incurred for each item as disclosed in the
financial statements to their equivalent per share amounts
using average shares outstanding.
The total return based on net asset value measures the
Fund's performance assuming investors purchased shares at
net asset value as of the beginning of the period,
reinvested dividends and capital gains paid at net asset
value, and then sold their shares at the net asset value per
share on the last day of the period. The total return
computations do not reflect any sales charges investors may
incur in purchasing or selling shares of the Fund. The total
returns for periods of less than one year are not
annualized.
<TABLE>
<CAPTION>
Class A Class D
------------------------------------------ -------------------
Year Ended September 30 Year 2/1/94*
------------------------------------------ Ended to
1995 1994 1993 1992 1991 9/30/95 9/30/94
------ ------ ------ ------ ------ --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period $7.55 $8.61 $8.02 $7.74 $7.34 $7.54 $8.37
----- ----- ----- ----- ----- ----- -----
Net investment income .38 .39 .42 .46 .47 .31 .22
Net realized and unrealized
investment gain (loss) .37 (.80) .71 .30 .49 .37 (.83)
----- ----- ----- ----- ----- ----- -----
Increase (decrease) from
investment operations .75 (.41) 1.13 .76 .96 .68 (.61)
Dividends paid or declared (.38) (.39) (.42) (.46) (.47) (.31) (.22)
Distributions from
net gain realized (.13) (.26) (.12) (.02) (.09) (.13) --
----- ----- ----- ----- ----- ----- -----
Net increase (decrease) in
net asset value .24 (1.06) .59 .28 .40 .24 (.83)
----- ----- ----- ----- ----- ----- -----
Net asset value, end of period $7.79 $7.55 $8.61 $8.02 $7.74 $7.78 $7.54
===== ===== ===== ===== ===== ===== =====
Total return based on
net asset value 10.55% (5.00)% 14.71% 10.04% 13.40% 9.53% (7.50)%
Ratios/Supplemental Data:
Expenses to average net assets 1.21% 1.16% 1.19% 1.01% .98% 2.23% 2.00%+
Net investment income to
average net assets 5.05% 4.91% 5.14% 5.79% 6.16% 4.10% 4.20%+
Portfolio turnover 11.78% 7.71% 40.74% 32.87% 25.24% 11.78% 7.71%++
Net assets, end of period
(000's omitted) $33,251 $34,943 $41,296 $39,431 $37,853 $426 $43
Without management fee waiver:**
Net investment income per share $.45 $.45
Expenses to average net assets 1.16% 1.23%
Net investment income to
average net assets 5.64% 5.91%
- ----------------
* Commencement of offering of Class D shares.
** The Manager, at its discretion, waived a portion of its fees for the periods presented.
+ Annualized.
++ For the year ended September 30, 1994.
See notes to financial statements.
</TABLE>
<PAGE>
Report of Independent Auditor:
The Trustees and Shareholders,
Seligman Pennsylvania Tax-Exempt Fund:
We have audited the accompanying statement of assets and
liabilities, including the portfolio of investments, of
Seligman Pennsylvania Tax-Exempt Fund as of September 30,
1995, the related statements of operations for the year then
ended and of changes in net assets for each of the years in
the two-year period then ended, and the financial highlights
for each of the periods presented. These financial
statements and financial highlights are the responsibility
of the Fund's management. Our responsibility is to express
an opinion on these financial statements and financial
highlights based on our audits.
We conducted our audits in accordance with generally
accepted auditing standards. Those standards require that we
plan and perform the audit to obtain reasonable assurance
about whether the financial statements and financial
highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of
September 30, 1995 by correspondence with the Fund's
custodian. An audit also includes assessing the accounting
principles used and significant estimates made by
management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements and financial
highlights present fairly, in all material respects, the
financial position of Seligman Pennsylvania Tax-Exempt Fund
as of September 30, 1995, the results of its operations, the
changes in its net assets, and the financial highlights for
the respective stated periods, in conformity with generally
accepted accounting principles.
/s/ Deloitte & Touche LLP
- ------------------------
DELOITTE & TOUCHE LLP
New York, New York
November 3, 1995
<PAGE>
Trustees
Fred E. Brown
Director and Consultant,
J. & W. Seligman & Co. Incorporated
John R. Galvin 2
Dean, Fletcher School of Law and Diplomacy
at Tufts University
Director, USLIFE Corporation
Alice S. Ilchman 3
President, Sarah Lawrence College
Trustee, Committee for Economic Development
Director, NYNEX
Chairman, The Rockefeller Foundation
Frank A. McPherson 2
Chairman and CEO, Kerr-McGee Corporation
Director, Kimberly-Clark Corporation
Director, Baptist Medical Center
John E. Merow
Partner, Sullivan & Cromwell, Law Firm
Director, Commonwealth Aluminum Corporation
Betsy S. Michel 2
Director or Trustee,
Various Organizations
William C. Morris 1
Chairman
Chairman of the Board and President,
J. & W. Seligman & Co. Incorporated
Chairman, Carbo Ceramics Inc.
Director, Daniel Industries, Inc.
Director, Kerr-McGee Corporation
James C. Pitney 3
Partner, Pitney, Hardin, Kipp & Szuch, Law Firm
Director, Public Service Enterprise Group
James Q. Riordan 3
Director, The Brooklyn Union Gas Company
Trustee, Committee for Economic Development
Director, Dow Jones & Co., Inc.
Director, Public Broadcasting Service
Ronald T. Schroeder 1
Managing Director,
J. & W. Seligman & Co. Incorporated
Robert L. Shafer 3
Vice President, Pfizer Inc.
Director, USLIFE Corporation
James N. Whitson 2
Executive Vice President and Director,
Sammons Enterprises, Inc.
Director, C-Span
Director, Red Man Pipe and Supply Company
Brian T. Zino 1
President
Managing Director,
J. & W. Seligman & Co. Incorporated
- ----------------
Member:
1 Executive Committee
2 Audit Committee
3 Trustee Nominating Committee
Executive Officers
William C. Morris
Chairman
Brian T. Zino
President
Thomas G. Moles
Vice President
Lawrence P. Vogel
Vice President
Thomas G. Rose
Treasurer
Frank J. Nasta
Secretary
Manager
J. & W. Seligman & Co.
Incorporated
100 Park Avenue
New York, NY 10017
General Counsel
Sullivan & Cromwell
Independent Auditors
Deloitte & Touche LLP
General Distributor
Seligman Financial Services, Inc.
100 Park Avenue
New York, NY 10017
Shareholder Service Agent
Seligman Data Corp.
100 Park Avenue
New York, NY 10017
Important Telephone Numbers
(800) 221-2450 Shareholder
Services
(800) 622-4597 24-Hour Automated
Telephone Access
Service
<PAGE>
SELIGMAN FINANCIAL SERVICES, INC.
an affiliate of
(JWS LOGO GOES HERE)
J. & W. SELIGMAN & CO.
INCORPORATED
EXTABLISHED 1864
100 Park Avenue, New York, NY 10017
This report is intended only for the information of
shareholders or those who have received the offering
prospectus covering shares of Beneficial Interest of
Seligman Pennsylvania Tax-Exempt Fund, which contains
information about the sales charges, management fee, and
other costs. Please read the prospectus carefully before
investing or sending money.
TEDPA2 9/95
