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T. ROWE PRICE
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STATE TAX-FREE INCOME TRUST
Supplement to Statement of Additional Information dated July 1,
1995.
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The section entitled "Pricing of Securities" beginning on
page 70 has been revised to read as follows:
PRICING OF SECURITIES BEING OFFERED
Fixed income securities are generally traded in the over-
the-counter market. With the exception of the Money Market Funds,
investments in securities are stated at fair value using a bid-
side valuation as furnished by dealers who make markets in such
securities or by an independent pricing service, which considers
yield or price of bonds of comparable quality, coupon, maturity,
and type, as well as prices quoted by dealers who make markets in
such securities. Securities held by the Money Market Funds are
valued at amortized cost.
There are a number of pricing services available, and the
Directors of the Funds, on the basis of ongoing evaluation of
these services, may use or may discontinue the use of any pricing
service in whole or in part.
Securities or other assets for which the above valuation
procedures are inappropriate or are deemed not to reflect fair
value will be appraised at prices deemed best to reflect their
fair value. Such determinations will be made in good faith by or
under the supervision of officers of each Fund, as authorized by
the Board of Directors.
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The date of this Supplement is March 18, 1996.
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