Annual Report
New York
Tax-Free
Funds
February 28, 1998
T. Rowe Price
Report Highlights
New York Tax-Free Funds
o Municipal bonds performed well during the past 6- and
12-month periods. New York bonds were also strong as an
improving economy resulted in credit upgrades.
o Turbulence in Asia resulted in sharply rising prices and
lower-than-expected yields for U.S. bonds, including New
York securities.
o Both funds posted better returns than their peer group
averages for both the last six months and the year ended
February 28, 1998.
o Long maturities benefited results in the New York
Tax-Free Money Fund, while an aggressive duration posture
and capital appreciation helped New York Tax-Free Bond
Fund's returns.
o New York's economy should enjoy modest growth, and we
expect positive returns in 1998 as long as inflation
remains low and progress continues on the budget.
Fellow Shareholders
The bond market and your funds enjoyed good returns during the
past 6- and 12-month periods, fueled by low inflation and
credit upgrades due to strong economic growth. In the
aftermath of the crises in Southeast Asia, domestic bonds,
including municipals, benefited from a flight to the relative
stability of U.S. fixed income markets.
MARKET ENVIRONMENT
During the six months ended February 28, 1998, municipal bond
prices rose and yields declined, with long-term AAA-rated bond
yields falling 27 basis points (100 basis points equal one
percent) from August through September. Intermediate yields
fell in tandem with long-term rates, but short-term rates fell
less sharply. As a result, the yield curve flattened
throughout most of the past six months.
The tax-exempt market benefited from the positive impact of
subdued inflation on all fixed income investments. However,
municipals underperformed Treasuries as issuers rushed to the
market to take advantage of low borrowing costs, driving up
supply. Municipal new issuance rose 20% in 1997, and supply so
far in 1998 is the highest ever for the first two months of
the year. New York issuers sold almost $28 billion worth of
new bonds last year, an increase of 31% over 1996.
New York Yield Indexes
New York Bond New York Money
Index Index
2/28/97 5.86 3.1
6.06 3.2
5.93 4.25
5/31/97 5.82 3.65
5.74 3.9
5.45 3.4
8/31/97 5.62 3.1
5.51 3.6
5.46 3.4
11/30/97 5.43 3.65
5.27 3.55
5.1 3.3
2/28/98 5.25 3.15
Overall economic growth and employment in New York are improving but
continue to lag the national averages. Despite mediocre job growth, both
New York State and New York City are projected to end their current fiscal
years with record budget surpluses exceeding $1 billion. Large Wall Street
bonuses, as well as a temporary surge in capital gains income due to last
year's tax bill, fueled higher-than-expected tax receipts. Robust tax
collections and restrained spending over the last few years have allowed
the state to reduce its top personal income tax rate to 6.85% and make a
modest contribution to financial reserves.
New York City's finances have also improved as Wall Street prospers and
other sectors of the economy participate in the expansion. In recognition
of the revitalized economy and prudent financial management, Moody's
Investors Service recently raised New York City's credit rating to A3, the
highest since 1988. A portion of the city's capital needs are now being
funded through the Transitional Finance Authority, which allows access to
funding beyond legal caps at a lower cost because of the higher credit
rating.
NEW YORK TAX-FREE MONEY FUND
Our longer-maturity strategy resulted in good returns, enabling your fund
to outperform its peer group during both the 6- and 12-month periods ended
February 28, 1998.
Performance Comparison
Periods Ended 2/28/98 6 Months 12 Months
_____________________________________________________________
New York Tax-Free
Money Fund 1.53% 3.11%
Lipper New York Tax-Exempt
Money Market Funds Average 1.50 3.07
The fund ended the fiscal year with a weighted average maturity of 53
days, shorter than the 69 days on August 31 and 63 days of a year ago. At
each interval, however, the fund's maturity was longer than that of its
competitive peer group, which was only 44 days on February 28, 1998. Our
longer- maturity posture was warranted by both a stable U.S. monetary
policy and strong cash flows into the short-term tax-exempt sector. Your
fund's increased holdings in longer maturities provided an additional
average yield of 10 to 20 basis points.
Short-term tax-exempt yields closed the fiscal year at 3.50% for six-month
and 3.60% for one-year maturities. These yields were 20 and 25 basis
points lower, respectively, than the yields that prevailed on August 31,
but only five to 10 basis points lower than a year ago. All in all, the
rate environment has been remarkably docile in the short end of the yield
curve, and most of the move toward lower yields took place during the
first two months of 1998.
The supply of new short-term issues increased more than 10% in 1997 to
almost $46 billion, the largest yearly volume since 1993. More important,
however, is the increase in tax-exempt money fund assets, which rose
almost $25 billion to a record $172.3 billion. New York tax-exempt money
funds were no exception, with assets rising more than 20% over the past
year to $11.8 billion. As investors have become more willing to accept a
lower rate of return for stability of principal, money funds across the
board have benefited. This is best evidenced by the assets of all money
funds, both tax-exempt and taxable, which surpassed the $1 trillion
milestone in 1997.
NEW YORK TAX-FREE BOND FUND
Our focus on high-coupon income and long-term bonds positioned the fund
for a very good year. Total returns of 5.45% and 9.75% for the 6- and
12-month periods, respectively, exceeded those of the Lipper peer group
average. Your fund's income distribution remained constant even as rates
dropped significantly. Maintaining a higher yield than many of our
competitors continued to be an important part of our strategy. The fund's
below-average expense ratio also helped to achieve our goal.
Performance Comparison
Periods Ended 2/28/98 6 Months 12 Months
_______________________________________________________________
New York Tax-Free
Bond Fund 5.45% 9.75%
Lipper New York Municipal
Debt Funds Average 4.87 9.05
After the start of the fund's fiscal year, we moved toward a slightly
defensive duration posture as the Fed prepared to raise short-term
interest rates. (Duration is a measure of a bond fund's sensitivity to
interest rates. For example, a fund with a duration of eight years would
fall or rise about 8% in price in response to a one-percentage-point rise
or fall in interest rates.) However, as the year progressed and we felt
that no further rate increases were imminent, we extended duration to 8.3
years, where it stood at the end of February. The longer duration allowed
us to maximize the fund's tax-free yield by holding long-term bonds and
also to participate in price appreciation due to a possible drop in
interest rates. Both factors contributed positively to returns.
We adopted this more aggressive posture because of continuing low
inflation and progress on balancing the federal budget. The problems in
Asia accelerated the decline in interest rates to unanticipated levels. In
times of international uncertainty, global investors often flock to U.S.
bonds, and New York bonds participated in the rally.
We increased fund allocation to the local general obligation sector in
anticipation of an improvement in regional economies, especially New York
City. The portfolio had about a 5% position in New York City debt at the
end of February. We added to our BBB and lower-rated holdings in other
sectors, an investment theme we have pursued over the last few years.
These lower-rated securities have done well so far, but they carry added
risk. Going forward, we will maintain these holdings but will be cautious
about adding to them significantly.
OUTLOOK
The problems in Asia could affect the U.S. economy and slice a bit off
1998 growth, but the so-called Asian flu does not appear serious enough to
precipitate a downturn while domestic consumer demand remains healthy. The
recent Congressional testimony of Federal Reserve officials suggests that
the Fed will leave monetary policy unchanged until it fully appraises the
impact of Asia's problems on the U.S. economy.
WE ARE OPTIMISTIC ABOUT THE STATE'S IMPROVED COMPETITIVE POSITION, SINCE
THE BUSINESS SERVICES SECTOR CONTINUES TO BE STRONG.
We expect New York's economy to experience modest growth, and we are
optimistic about the state's improved competitive position, since the
business services sector continues to be strong. There appears to be
minimal risk surrounding the state budget in the short term, although the
longer-term outlook is more clouded due to the state's heavy debt burden
and exposure to the cyclical financial services sector. Statewide bond
issuance should remain heavy, particularly to finance transportation
needs. We expect New York bond issuance to be dominated by the Long Island
Power Authority, which plans to sell more than $7 billion worth of bonds
over the next 18 months.
We will maintain our slightly long duration and maturity profile as long
as the outlook for inflation and the budget remains favorable. We will
also carefully scrutinize new issues this year for opportunities to
maintain income and appreciation potential for the fund.
Respectfully submitted,
Patrice L. Berchtenbreiter
Chairman of the Investment Advisory Committee
New York Tax-Free Money Fund
William F. Snider
Chairman of the Investment Advisory Committee
New York Tax-Free Bond Fund
March 20, 1998
T. Rowe Price New York Tax-Free Funds
Portfolio Highlights
Key statistics
8/31/97 2/28/98
New York Tax-Free Money Fund
_______________________________________________________________________
Price Per Share $ 1.00 $ 1.00
Dividends Per Share
For 6 months 0.015 0.015
For 12 months 0.030 0.031
Dividend Yield (7-Day Compound) * 2.98% 2.94%
Weighted Average Maturity (days) 69 53
Weighted Average Quality ** First Tier First Tier
New York Tax-Free Bond Fund
_______________________________________________________________________
Price Per Share $ 10.95 $ 11.26
Dividends Per Share
For 6 months 0.28 0.28
For 12 months 0.57 0.57
Dividend Yield *
For 6 months 5.28% 5.15%
For 12 months 5.41 5.29
Weighted Average Maturity (years) 20.5 20.3
Weighted Average Effective Duration
(years) 8.1 8.3
Weighted Average Quality *** A+ A
* Dividends earned and reinvested for the periods indicated are
annualized and divided by the average daily net asset values per share
for the same period.
** All securities purchased in the money fund are rated in the two
highest categories (tiers) as established by national rating agencies
or, if unrated, are deemed of comparable quality by T. Rowe Price.
*** Based on T. Rowe Price research.
T. Rowe Price New York Tax-Free Funds
Portfolio Highlights
Sector Diversification
Percent of Percent of
Net Assets Net Assets
8/31/97 2/28/98
New York Tax-Free Money Fund
_____________________________________________________________________
General Obligation - Local 18% 23%
Miscellaneous Revenue 18 13
Dedicated Tax Revenue 10 11
Water and Sewer Revenue 10 9
Prerefunded Bonds 4 8
Ground Transportation Revenue 8 7
Housing Finance Revenue - 7
Air and Sea Transportation Revenue 5 5
Educational Revenue 4 4
Electric Revenue 4 4
General Obligation - State 1 3
Nuclear Revenue 2 2
All Other 15 2
Other Assets Less Liabilities 1 2
_____________________________________________________________________
Total 100% 100%
New York Tax-Free Bond Fund
_____________________________________________________________________
Water and Sewer Revenue 9% 11%
General Obligation - Local 6 11
Dedicated Tax Revenue 10 10
Lease Revenue 9 9
Air and Sea Transportation Revenue 9 9
Miscellaneous Revenue 8 8
Prerefunded Bonds 6 8
Housing Finance Revenue 8 6
Hospital Revenue 7 6
General Obligation - State 4 5
Ground Transportation Revenue 8 5
Educational Revenue 6 5
Nuclear Revenue 2 3
Solid Waste Revenue 3 3
Electric Revenue 4 2
All Other 1 2
Other Assets Less Liabilities - - 3
______________________________________________________________________
Total 100% 100%
T. Rowe Price New York Tax-Free Funds
Performance Comparison
These charts show the value of a hypothetical $10,000 investment in each
fund over the past 10 fiscal year periods or since inception (for funds
lacking 10-year records). The result is compared with a broad-based
average or index. The index return does not reflect expenses, which have
been deducted from the fund's return.
New York Tax-Free Money Fund
As of 2/28/98
Lipper New York
Tax-Exempt Money New York Tax-Free
Market Funds Average Money Fund
2/88 $10,000 $ 10,000
2/89 10,462 10,442
2/90 11,039 10,988
2/91 11,593 11,515
2/92 12,015 11,930
2/93 12,289 12,195
2/94 12,506 12,420
2/95 12,814 12,729
2/96 13,228 13,144
2/97 13,607 13,527
2/98 14,023 13,948
New York Tax-Free Bond Fund
As of 2/28/98
Lipper New York
Lehman Municipal Municipal Debt New York Tax-Free
Bond Index Funds Average Bond Fund
2/88 $ 10,000 $ 10,000 $ 10,000
2/89 10,621 10,617 10,581
2/90 11,710 11,515 11,325
2/91 12,790 12,352 12,201
2/92 14,067 13,699 13,502
2/93 16,003 15,862 15,634
2/94 16,890 16,774 16,620
2/95 17,208 16,685 16,744
2/96 19,109 18,342 18,493
2/97 20,161 19,164 19,422
2/98 22,004 20,937 21,315
Average Annual Compound Total Return
This table shows how each fund would have performed each year if its
actual (or cumulative) returns for the periods shown had been earned at a
constant rate.
Periods Ended
2/28/98 1 Year 3 Years 5 Years 10 Years
______________________________________________________________________
New York Tax-Free
Money Fund 3.11% 3.10% 2.72% 3.38%
New York Tax-Free
Bond Fund 9.75 8.38 6.39 7.86
Investment return represents past performance and will vary. Shares of the
bond fund may be worth more or less at redemption than at original
purchase. The Money Fund's $1.00 share price is not guaranteed, nor is the
fund insured by the U.S. government.
T. Rowe Price New York Tax-Free Money Fund
For a share outstanding throughout each period
Financial Highlights
Year
Ended
2/28/98 2/28/97 2/29/96 2/28/95 2/28/94
NET ASSET VALUE
Beginning of
period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Investment
activities
Net invest-
ment income 0.031* 0.029* 0.032* 0.025* 0.018*
Distributions
Net investment
income 0.031 (0.029) (0.032) (0.025) (0.018)
NET ASSET VALUE
End of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
______________________________________________________
Ratios/Supplemental Data
Total return 3.11%* 2.91%* 3.26%* 2.49%* 1.84%*
Ratio of
expenses to
average net
assets 0.55%* 0.55%* 0.55%* 0.55%* 0.55%*
Ratio of net
investment
income to
average
net assets 3.07%* 2.86%* 3.21%* 2.48%* 1.82%*
Net assets,
end of period
(in thousands)$95,333 $ 82,729 $ 71,040 $ 66,154 $ 57,736
* Excludes expenses in excess of a 0.55% voluntary expense limitation in
effect through 2/28/99.
The accompanying notes are an integral part of these financial statements.
T. Rowe Price New York Tax-Free Bond Fund
For a share outstanding throughout each period
Financial Highlights
Year
Ended
2/28/98 2/28/97 2/29/96 2/28/95 2/28/94
NET ASSET VALUE
Beginning of
period $ 10.80 $ 10.85 $ 10.37 $ 10.98 $ 11.05
Investment
activities
Net invest-
ment income 0.57 0.57* 0.58* 0.58* 0.59*
Net realized and
unrealized
gain (loss) 0.46 (0.05) 0.48 (0.53) 0.09
Total from
investment
activities 1.03 0.52 1.06 0.05 0.68
Distributions
Net investment
income (0.57) (0.57) (0.58) (0.58) (0.59)
Net realized
gain - - - (0.08) (0.16)
Total distri-
butions (0.57) (0.57) (0.58) (0.66) (0.75)
NET ASSET VALUE
End of period $ 11.26 $ 10.80 $ 10.85 $ 10.37 $ 10.98
______________________________________________________
Ratios/Supplemental Data
Total return 9.75% 5.02%* 10.44%* 0.74%* 6.31%*
Ratio of expenses
to average net
assets 0.61% 0.65%* 0.65%* 0.60%* 0.60%*
Ratio of net
investment
income to average
net assets 5.16% 5.35%* 5.42%* 5.71%* 5.31%*
Portfolio
turnover rate 55.0% 96.9% 116.0% 134.3% 84.9%
Net assets, end
of period
(in thousands)$177,393$ 144,532 $ 134,933 $117,847 $130,347
* Excludes expenses in excess of a 0.60% voluntary expense limitation in
effect through 2/28/95 and a 0.65% voluntary expense limitation in
effect 3/1/95 through 2/28/97.
The accompanying notes are an integral part of these financial statements.
T. Rowe Price New York Tax-Free Money Fund
February 28, 1998
Statement of Net Assets
Par Value
In thousands
NEW YORK 92.6%
Albany Municipal Water Fin. Auth.
7.50%, 12/1/17 (MBIA Insured)
(Prerefunded 12/1/98!) $ 40 $ 42
Babylon IDA, Ogden Martin Systems
8.50%, 7/1/19 (Prerefunded
7/1/98!) 1,700 1,777
Commack Union Free School Dist.,
GO, TAN, 4.25%, 6/29/98 2,000 2,002
Connetquot, GO, TAN, 4.25%, 6/25/98 1,000 1,001
Dormitory Auth. of the State of New York
Cornell Univ., VRDN (Currently 3.65%) 3,600 3,600
Memorial Sloan Kettering Cancer
Center, TECP
3.45%, 4/6/98 500 500
Oxford Univ. Press, VRDN (Currently
3.70%) 2,185 2,185
Erie County, GO, RAN, 4.50%, 6/25/98 2,000 2,004
Erie County Water Auth.
VRDN (Currently 3.15%) (AMBAC
Insured) 3,750 3,750
Great Neck Water Auth.
VRDN (Currently 3.45%) (FGIC
Insured) 300 300
Huntington Union Free School Dist.,
GO, TAN, 4.25%, 6/29/98 1,000 1,001
Manhasset Union Free School Dist., GO,
TAN, 4.25%, 6/30/98 1,000 1,002
Massapequa Union Free School Dist., GO,
TAN
4.25%, 6/30/98 1,000 1,001
Metropolitan Transportation Auth.
Commuter Fac.
7.20%, 7/1/00 (AMBAC Insured)
(Prerefunded 7/1/98!) 15 16
7.50%, 7/1/17 (AMBAC Insured)
(Prerefunded 7/1/98!) 1,500 1,549
Monroe County, GO, Public Improvement,
4.50%, 6/1/98 385 386
Municipal Assistance Corp. of New York
City
VRDN (Currently 3.15%) 2,800 2,800
4.20%, 7/1/98 (AMBAC Insured) 610 611
4.50%, 7/1/98 1,000 1,003
6.30%, 7/1/98 425 429
Nassau County, GO
RAN, 4.50%, 3/10/98 2,000 2,000
TAN, 4.25%, 3/31/98 2,000 2,001
Nassau County IDA, Cold Spring
Harbor Laboratory
VRDN (Currently 3.65%) $ 4,500 $ 4,500
New York City, GO
8.00%, 6/1/12 (Prerefunded
6/1/98!) 50 51
RAN, 4.50%, 6/30/98 4,000 4,012
New York City Housing Dev.
Multifamily Rental Housing,
Columbus Green
VRDN (Currently 3.20%)
(FNMA Guaranteed) 3,000 3,000
Tribeca Tower, VRDN (Currently 3.25%) *4,000 4,000
New York City IDA, American Civil
Liberties Fac.
VRDN (Currently 3.25%) 2,000 2,000
New York City Municipal Water Fin. Auth.
VRDN (Currently 3.65%) (FGIC Insured) 700 700
VRDN (Currently 3.65%) 1,700 1,700
TECP, 3.80%, 3/11/98 1,000 1,000
Water and Sewer
VRDN (Currently 3.90%) (FGIC
Insured) 1,150 1,150
New York City Trust for Cultural Resources
American Museum of National History
VRDN (Currently 3.15%)
(MBIA Insured) 4,000 4,000
New York Housing Fin. Agency
State University
8.10%, 11/1/10 (Prerefunded 11/1/98!) 500 524
University Construction
6.00%, 11/1/98 (Escrowed to Maturity) 50 51
New York State, GO, TECP, 3.40%, 4/9/98 1,000 1,000
New York State Power Auth., TECP,
3.55%, 4/7/98 2,120 2,120
New York State Energy Research
and Dev. Auth.
Orange and Rockland Utilities
VRDN (Currently 3.15%) (FGIC Insured)3,600 3,600
New York State Environmental Fac., PCR
General Electric, TECP, 3.60%,
5/22/98 * 700 700
New York City Municipal Water,
4.80%, 6/15/98 200 201
New York State Local Gov't. Assistance
VRDN (Currently 3.10%) 2,500 2,500
VRDN (Currently 3.15%) 2,200 2,200
New York State Medical Care Fac.
Fin. Agency, Buffalo General Hosp.
7.70%, 8/15/22 (FHA Guaranteed)
(Prerefunded 8/15/98!) $ 1,000 $ 1,037
New York State Thruway Auth.
VRDN (Currently 4.05%) 4,200 4,200
5.00%, 4/1/98 (AMBAC Insured) 850 851
Port Auth. of New York and New Jersey
VRDN (Currently 3.55%) * 3,300 3,300
4.25%, 7/1/98 * 1,000 1,001
Roslyn Union Free School Dist., GO,
TAN, 4.25%, 6/29/98 1,000 1,001
South Huntington Union Free School
Dist., GO, TAN
4.10%, 6/30/98 2,000 2,002
Syracuse IDA, Syracuse Univ., VRDN
(Currently 3.65%) 100 100
Triborough Bridge and Tunnel Auth.
VRDN (Currently 3.15%) (FGIC Insured)2,800 2,800
Westchester County, GO, TAN, 3.59%,
12/29/98 2,000 2,000
Total New York (Cost $88,261) 88,261
PUERTO RICO 5.5%
Puerto Rico Aqueduct and Sewer Auth.
7.875%, 7/1/17 (Prerefunded 7/1/98!) 900 930
Puerto Rico Commonwealth, GO, TRAN,
4.50%, 7/30/98 3,000 3,009
Puerto Rico Electric Power Auth.
8.00%, 7/1/08 (Prerefunded
7/1/98!) 1,000 1,035
University Puerto Rico, 6.50%, 6/1/13
(Prerefunded 6/1/98!) 300 302
Total Puerto Rico (Cost $5,276) 5,276
Total Investments in Securities
98.1% of Net Assets (Cost $93,537) $ 93,537
Other Assets Less Liabilities 1,796
NET ASSETS $ 95,333
___________
Net Assets Consist of:
Accumulated net investment income -
net of distributions $ 3
Accumulated net realized gain/loss -
net of distributions (2)
Paid-in-capital applicable to 95,334,721
no par value shares of beneficial interest
outstanding; unlimited number of shares
authorized 95,332
NET ASSETS $ 95,333
___________
NET ASSET VALUE PER SHARE $ 1.00
___________
* Interest subject to alternative minimum tax
! Used in determining portfolio maturity
AMBAC AMBAC Indemnity Corp.
FGIC Financial Guaranty Insurance Company
FHA Federal Housing Authority
FNMA Federal National Mortgage Association
GO General Obligation
IDA Industrial Development Authority
MBIA Municipal Bond Investors Assurance Corp.
PCR Pollution Control Revenue
RAN Revenue Anticipation Note
TAN Tax Anticipation Note
TECP Tax-Exempt Commercial Paper
TRAN Tax Revenue Anticipation Note
VRDN Variable Rate Demand Note
The accompanying notes are an integral part of these financial statements.
T. Rowe Price New York Tax-Free Bond Fund
February 28, 1998
Statement of Net Assets
Par Value
In thousands
NEW YORK 89.1%
Albany County Airport Auth., 5.50%,
12/15/19 (FSA Insured) * $ 2,000 $ 2,058
Battery Park City Auth.
5.25%, 11/1/17 2,000 1,992
5.50%, 11/1/29 (AMBAC Insured) 3,150 3,258
Buffalo, GO
5.25%, 2/1/13 (FGIC Insured) 2,485 2,558
5.25%, 2/1/14 (FGIC Insured) 420 431
Dormitory Auth. of the State of New York
Agnes Hosp., 5.30%, 2/15/19 1,000 996
Champlain Valley Physicians
5.00%, 7/1/17 1,760 1,730
6.00%, 7/1/09 400 452
City Univ.
5.75%, 7/1/11 (AMBAC Insured) 2,000 2,219
8.20%, 7/1/13 350 362
Cornell Univ.
VRDN (Currently 3.65%) 100 100
7.375%, 7/1/20 1,500 1,635
Dept. of Health, 6.50%, 7/1/09 500 561
Judicial Fac. (Suffolk County),
9.50%, 4/15/14 1,000 1,167
Maimonides Medical Center
5.75%, 8/1/35 (MBIA Insured) 1,500 1,586
Mental Health Services Fac., 5.75%,
8/15/22 2,500 2,620
New York and Presbyterian Hosp.
Zero Coupon, 8/15/36 (AMBAC
Insured) 8,410 1,099
Nyack Hosp.
5.35%, 7/1/99 750 760
6.00%, 7/1/06 2,000 2,162
Rockefeller Univ., 6.75%, 7/1/11 1,365 1,498
Siena College, 5.75%, 7/1/26 (MBIA
Insured) 2,000 2,127
St. Joseph's Hosp., 5.25%, 7/1/18
(MBIA Insured) 1,000 1,002
State Univ., 5.00%, 5/15/13 1,700 1,696
State Univ. Ed. Fac., 7.50%, 5/15/11 2,130 2,640
Wyckoff Heights, 5.30%, 8/15/21 1,500 1,490
Erie County Water Auth.
Zero Coupon, 12/1/17 (AMBAC
Insured) $ 665 $ 162
Essex County Industrial Dev. Agency,
PCR, Int'l. Paper
5.70%, 7/1/16 * 1,850 1,964
Metropolitan Transportation Auth.
Commuter Fac.
5.00%, 7/1/11 (AMBAC Insured) 2,000 2,036
5.625%, 7/1/27 (MBIA Insured) 2,000 2,093
Service Contract, 5.50%, 7/1/13 1,510 1,561
Transportation Fac.
5.875%, 7/1/27 (MBIA Insured) 2,300 2,469
Mount Sinai Union Free School Dist., GO
6.20%, 2/15/17 (AMBAC Insured) 1,025 1,181
6.20%, 2/15/18 (AMBAC Insured) 515 594
Municipal Assistance Corp. for the
City of New York
7.625%, 7/1/08 (Prerefunded 7/1/98!) 500 517
Nassau County, GO
6.50%, 11/1/13 (FGIC Insured)
(Prerefunded 11/1/04!) 1,500 1,734
Nassau County IDA
Hofstra Univ.
6.75%, 1/1/10 270 307
6.90%, 1/1/14 350 398
6.90%, 1/1/15 375 427
New Rochelle, GO
6.25%, 3/15/17 (MBIA Insured) 375 414
6.25%, 3/15/18 (MBIA Insured) 400 441
6.25%, 3/15/19 (MBIA Insured) 425 469
New York City, GO
5.00%, 8/1/23 750 720
5.25%, 8/1/15 2,500 2,497
5.25%, 8/1/21 2,500 2,467
5.75%, 10/15/13 1,100 1,159
5.875%, 3/15/12 2,345 2,489
6.00%, 8/1/12 1,000 1,081
6.25%, 8/1/09 1,750 1,951
7.625%, 2/1/14 (Prerefunded 2/1/02!) 500 570
7.75%, 8/15/15 215 239
New York City IDA
Brooklyn Navy Yard Cogeneration
5.65%, 10/1/28 * $ 2,500 $ 2,565
Nightingale Bamford School, 5.85%,
1/15/20 1,440 1,497
Terminal One Group Assoc., 6.00%,
1/1/19 * 2,500 2,629
USTA National Tennis Center
6.375%, 11/15/14 (FSA Insured) 1,000 1,113
New York City Municipal Water Fin. Auth.
Sewer Systems
4.75%, 6/15/25 1,725 1,594
5.125%, 6/15/21 2,500 2,445
Water and Sewer
VRDN (Currently 3.65%) (FGIC Insured)1,600 1,600
5.00%, 6/15/17 (FGIC Insured) 2,000 1,973
5.25%, 6/15/29 2,500 2,481
5.875%, 6/15/26 5,000 5,310
New York City Transitional Fin. Auth.
4.50%, 11/15/27 1,500 1,348
4.75%, 11/15/23 3,000 2,810
New York City Trust for Cultural Resources
Museum of Modern Art
5.50%, 1/1/16 (AMBAC Insured) 2,000 2,093
New York HFA, GO, 7.25%, 9/15/12 155 173
New York State, GO
7.125%, 11/15/16 (Prerefunded
11/15/00!) 500 550
New York State Energy Research and Dev.
Auth., PCR
Con Ed. Company, 6.75%, 1/15/27 * 2,350 2,505
Rochester Gas and Electric
5.95%, 9/1/33 (MBIA Insured) * 2,500 2,647
New York State Environmental Fac., PCR
New York City Municipal Water,
7.50%, 6/15/12 500 547
State Water Revolving Fund
5.75%, 6/15/12 1,000 1,105
6.90%, 5/15/15 655 753
6.90%, 11/15/15 750 862
New York State Housing Fin. Agency
Service Contract Obligations
7.375%, 9/15/21 (Prerefunded
3/15/02!) $ 150 $ 171
State Univ. Construction
8.00%, 5/1/11 (Escrowed to Maturity)1,000 1,287
New York State Local Gov't. Assistance
5.00%, 4/1/23 3,000 2,892
6.50%, 4/1/20 (Prerefunded 4/1/01!) 3,000 3,268
7.00%, 4/1/21 (Prerefunded 4/1/01!) 900 994
Public Benefit, 6.00%, 4/1/14 2,000 2,259
New York State Medical Care Fac. Fin. Agency
Ellis Hosp., 8.00%, 2/15/08
(FHA Guaranteed) 810 839
Mental Health Services
6.375%, 8/15/10 (FGIC Insured) 450 489
New York Hosp.
6.50%, 8/15/29 (AMBAC Insured)
(Prerefunded 2/15/05!) 2,000 2,295
St. Vincent/Staten Island Hosp.
6.125%, 2/15/14 (FHA Guaranteed) 365 394
New York State Mortgage Agency
Homeowner Mortgage
6.40%, 4/1/27 * 1,000 1,085
7.50%, 4/1/26 * 3,245 3,536
7.75%, 4/1/16 500 530
7.95%, 10/1/15 1,135 1,169
New York State Thruway Auth., VRDN
(Currently 4.05%) 500 500
New York State Urban Dev.
Correctional Capital Fac.
7.00%, 1/1/21 (Prerefunded 1/1/02!) 500 560
Sr. Lien, 5.375%, 7/1/22 5,000 5,085
Niagara Frontier Transportation Airport Auth.
Greater Buffalo Int'l. Airport
6.125%, 4/1/14 (AMBAC Insured) * 1,385 1,493
Onondaga County IDA, Community General Hosp.
6.625%, 1/1/18 500 537
Port Auth. of New York and New Jersey
VRDN (Currently 3.50%) $ 600 $ 600
5.00%, 10/1/22 2,000 1,950
5.50%, 9/1/12 (MBIA Insured) * 1,000 1,047
5.875%, 7/1/11 * 1,000 1,083
6.125%, 6/1/94 1,000 1,154
6.50%, 10/1/01 * 600 638
6.50%, 7/15/19 (FGIC Insured) * 2,000 2,197
6.50%, 11/1/26 * 1,500 1,615
6.75%, 4/15/26 (MBIA Insured) * 500 536
Special Project, 6.75%, 10/1/11 * 1,000 1,119
Syracuse IDA, St. Joseph's Hosp. Health Center
7.50%, 6/1/18 (Prerefunded
6/1/01!) 1,000 1,121
Triborough Bridge and Tunnel Auth.,
5.20%, 1/1/22 1,000 1,000
United Nations Dev.
5.30%, 7/1/11 1,000 1,005
5.40%, 7/1/14 1,000 1,003
Westchester County IDA, Wheelabrator
6.00%, 7/1/08 (AMBAC Insured) * 4,330 4,832
Western Nassau County, Water Auth.
5.65%, 5/1/26 (AMBAC Insured) 1,000 1,045
Total New York (Cost $146,773) 158,067
PUERTO RICO 13.5%
Puerto Rico Aqueduct and Sewer Auth.
7.875%, 7/1/17 (Prerefunded 7/1/98!)1,000 1,035
Puerto Rico Commonwealth, GO
8.00%, 7/1/07 (Prerefunded 7/1/98!) 1,500 1,551
Public Improvement, 4.50%, 7/1/23 4,000 3,603
Puerto Rico Electric Power Auth.
5.25%, 7/1/21 3,000 2,980
7.125%, 7/1/14 1,000 1,055
8.00%, 7/1/08 (Prerefunded 7/1/98!) 100 103
Puerto Rico Highway and Transportation Auth.
5.00%, 7/1/36 1,000 970
5.00%, 7/1/38 2,500 2,375
6.375%, 7/1/08 (FSA Insured) 1,000 1,099
Puerto Rico Infrastructure Fin. Auth.
5.25%, 7/1/10 (AMBAC Insured) $ 2,000 $ 2,132
Special Tax, 7.75%, 7/1/08 1,500 1,552
Puerto Rico Public Building Auth.,
GO, Gov't Fac.
5.00%, 7/1/27 (AMBAC Insured) 4,000 3,909
5.25%, 7/1/21 1,500 1,496
Total Puerto Rico (Cost $22,988) 23,860
Total Investments in Securities
102.6% of Net Assets (Cost $169,761) $ 181,927
Other Assets Less Liabilities (4,534)
NET ASSETS $ 177,393
___________
Net Assets Consist of:
Accumulated net investment income -
net of distributions $ 9
Accumulated net realized gain/loss -
net of distributions 891
Net unrealized gain (loss) 12,166
Paid-in-capital applicable to 15,753,460 no
par value shares of beneficial interest
outstanding; unlimited number of shares
authorized 164,327
NET ASSETS $ 177,393
___________
NET ASSET VALUE PER SHARE $ 11.26
___________
* Interest subject to alternative minimum tax
! Used in determining portfolio maturity
AMBAC AMBAC Indemnity Corp.
FGIC Financial Guaranty Insurance Company
FHA Federal Housing Authority
FSA Financial Security Assurance Corp.
GO General Obligation
HFA Health Facility Authority
IDA Industrial Development Authority
MBIA Municipal Bond Investors Assurance Corp.
PCR Pollution Control Revenue
VRDN Variable Rate Demand Note
The accompanying notes are an integral part of these financial statements.
T. Rowe Price New York Tax-Free Funds
Statement of Operations
In thousands
Money Fund Bond Fund
Year Year
Ended Ended
2/28/98 2/28/98
Investment Income
Interest income $ 3,193 $ 9,006
Expenses
Investment management 281 670
Custody and accounting 93 103
Shareholder servicing 76 130
Prospectus and shareholder reports 10 18
Legal and audit 8 8
Registration 7 17
Trustees 6 6
Miscellaneous 4 6
Total expenses 485 958
Net investment income 2,708 8,048
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities 1 1,690
Futures - (225)
Net realized gain (loss) 1 1,465
Change in net unrealized gain or loss
on securities - 5,151
Net realized and unrealized gain (loss) 1 6,616
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 2,709 $ 14,664
________________________
The accompanying notes are an integral part of these financial statements.
T. Rowe Price New York Tax-Free Funds
Statement of Changes in Net Assets
In thousands
Money Fund Bond Fund
Year Year
Ended Ended
2/28/98 2/28/97 2/28/98 2/28/97
Increase (Decrease) in Net Assets
Operations
Net investment
income $ 2,708 $ 2,212 $ 8,048 $ 7,284
Net realized
gain (loss) 1 (3) 1,465 86
Change in net
unrealized
gain or loss - - 5,151 (736)
Increase (decrease)
in net assets
from operations2,709 2,209 14,664 6,634
Distributions to shareholders
Net investment
income (2,708) (2,212) (8,048) (7,284)
Capital share transactions*
Shares sold 90,280 74,643 48,316 30,633
Distributions
reinvested 2,609 2,153 6,138 5,537
Shares redeemed (80,286) (65,104) (28,209) (25,921)
Increase (decrease)
in net assets
from capital
share
transactions 12,603 11,692 26,245 10,249
Net Assets
Increase (decrease)
during period 12,604 11,689 32,861 9,599
Beginning of
period 82,729 71,040 144,532 134,933
End of period $ 95,333 $ 82,729 $177,393 $ 144,532
___________________________________________________
*Share information
Shares sold 90,280 74,643 4,379 2,867
Distributions
reinvested 2,609 2,153 558 518
Shares redeemed (80,286) (65,104) (2,566) (2,435)
Increase (decrease)
in shares out-
standing 12,603 11,692 2,371 950
The accompanying notes are an integral part of these financial statements.
T. Rowe Price New York Tax-Free Funds
February 28, 1998
Notes to Financial Statements
Note 1 - Significant Accounting Policies
T. Rowe Price State Tax-Free Income Trust (the trust) is registered under
the Investment Company Act of 1940. The New York Tax-Free Money Fund (the
Money Fund) and the New York Tax-Free Bond Fund (the Bond Fund),
nondiversified, open-end management investment companies, are two of the
portfolios established by the trust and commenced operations on August 28,
1986.
The accompanying financial statements are prepared in accordance with
generally accepted accounting principles for the investment company
industry; these principles may require the use of estimates by fund
management.
Valuation Debt securities are generally traded in the over-the-counter
market. Except for securities held by the Money Fund, investments in
securities are stated at fair value 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 Fund are valued at amortized
cost.
Assets and liabilities for which the above valuation procedures are
inappropriate or are deemed not to reflect fair value are stated at fair
value as determined in good faith by or under the supervision of the
officers of that fund, as authorized by the Board of Trustees.
Premiums and Discounts Premiums and original issue discounts on municipal
securities are amortized for both financial reporting and tax purposes.
Market discounts are recognized upon disposition of the security as gain
or loss for financial reporting purposes and as ordinary income for tax
purposes.
Other Income and expenses are recorded on the accrual basis. Investment
transactions are accounted for on the trade date. Realized gains and
losses are reported on the identified cost basis. Distributions to
shareholders are recorded by each fund on the ex-dividend date. Income and
capital gain distributions are determined in accordance with federal
income tax regulations and may differ from those determined in accordance
with generally accepted accounting principles.
Note 2 - Investment Transactions
Purchases and sales of portfolio securities for the Bond Fund, other than
short-term securities, aggregated $118,211,000 and $85,325,000,
respectively, for the year ended February 28, 1998.
Note 3 - Federal Income Taxes
No provision for federal income taxes is required since each fund intends
to continue to qualify as a regulated investment company and distribute
all of its income. The Money Fund has unused realized capital loss
carryforwards for federal income tax purposes of $2,000, which expires in
2005. Capital loss carryforwards utilized by Money Fund in fiscal 1998
amounted to $1,000. Capital loss carryforwards utilized by the Bond Fund
in fiscal 1998 amounted to $481,000. The Money Fund intends to retain
gains realized in future periods that may be offset by available capital
loss carryforwards.
In order for the Bond Fund's capital accounts and distributions to
shareholders to reflect the tax character of certain transactions, the
following reclassifications were made during the year ended February 28,
1998. The results of operations and net assets were not affected by the
increases/(decreases) to these accounts.
Undistributed net investment income $ 1,000
Undistributed net realized gain (6,000)
Paid-in-capital 5,000
At February 28, 1998, the aggregate costs of investments for the Money and
Bond Funds for federal income tax and financial reporting purposes were
$93,537,000 and $169,761,000, respectively. For the Money Fund, amortized
cost is equivalent to value; and for the Bond Fund, net unrealized gain
aggregated $12,166,000, of which $12,326,000 related to appreciated
investments and $160,000 to depreciated investments.
Note 4 - Related Party Transactions
The investment management agreement between each fund and T. Rowe Price
Associates, Inc. (the manager) provides for an annual investment
management fee, of which $21,000 and $57,000 were payable at February 28,
1998 by the Money and Bond Funds, respectively. The fee is computed daily
and paid monthly, and consists of an individual fund fee equal to 0.10% of
average daily net assets and a group fee. The group fee is based on the
combined assets of certain mutual funds sponsored by the manager or Rowe
Price-Fleming International, Inc. (the group). The group fee rate ranges
from 0.48% for the first $1 billion of assets to 0.30% for assets in
excess of $80 billion. At February 28, 1998, and for the year then ended,
the effective annual group fee rate was 0.32%. Each fund pays a pro-rata
share of the group fee based on the ratio of its net assets to those of
the group.
Under the terms of the investment management agreement, the manager is
required to bear any expenses through February 28, 1999 for the Money Fund
which would cause the fund's ratio of expenses to average net assets to
exceed 0.55%. Pursuant to this agreement, $94,000 of management fees were
not accrued by the Money Fund for the year ended February 28, 1998.
Additionally, $258,000 of unaccrued fees and expenses related to a
previous agreement are subject to reimbursement through February 28, 1999.
Subject to shareholder approval, the Money Fund may reimburse the manager
for these expenses, provided that average net assets have grown or
expenses have declined sufficiently to allow reimbursement without causing
the Money Fund's ratio of expenses to average net assets to exceed 0.55%.
In addition, each fund has entered into agreements with the manager and a
wholly owned subsidiary of the manager, pursuant to which each fund
receives certain other services. The manager computes the daily share
price and maintains the financial records of each fund. T. Rowe Price
Services, Inc., is each fund's transfer and dividend disbursing agent and
provides shareholder and administrative services to the funds. The Money
and Bond Funds incurred expenses pursuant to these related party
agreements totaling approximately $124,000 and $170,000, respectively, for
the year ended February 28, 1998, of which $11,000 and $16,000,
respectively, were payable at period-end.
Tax Information (Unaudited) for the Tax Year Ended 2/28/98
We are providing this information as required by the Internal Revenue
Service. The amounts shown may differ from those reported in a fund's
financial statements because of differences between IRS and financial
statement reporting requirements.
The Money Fund and Bond Fund's dividend income included $2,688,000 and
$7,937,000, respectively, which qualified as exempt-interest dividends.
T. Rowe Price New York Tax-Free Funds
Report of Independent Accountants
To the Shareholders and Board of Trustees of
T. Rowe Price New York Tax-Free Funds
We have audited the accompanying statement of net assets of T. Rowe Price
New York Tax-Free Money Fund and T. Rowe Price New York Tax-Free Bond Fund
(two of the portfolios comprising the T. Rowe Price State Tax-Free Income
Trust) as of February 28, 1998, and the related statement of operations
for the year then ended, the statement of changes in net assets for each
of the two years in the period then ended, and the financial highlights
for each of the five years in the period then ended. These financial
statements and financial highlights are the responsibility of the Funds'
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 investments owned as of February 28, 1998, by
correspondence with the custodian and the brokers. 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, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of T. Rowe Price New York Tax-Free Money Fund and T. Rowe Price New York
Tax-Free Bond Fund as of February 28, 1998, the results of their
operations, the changes in their net assets, and financial highlights for
each of the periods stated in the first paragraph, in conformity with
generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Baltimore, Maryland
March 18, 1998
T. Rowe Price Shareholder Services
Investment Services And Information
Knowledgeable Service Representatives
By Phone Shareholder service representatives are available from 8 a.m. to
10 p.m. ET Monday through Friday and from 8:30 a.m. to 5 p.m. ET on
weekends. Call 1-800-225-5132 to speak directly with a representative who
will be able to assist you with your accounts.
In Person Visit one of our investor center locations to meet with a
representative who will be able to assist you with your accounts. You can
also drop off applications or obtain prospectuses and other literature at
these centers.
Automated 24-Hour Services
Tele*Access(registered trademark) Call 1-800-638-2587 to obtain
information such as account balance, date and amount of your last
transaction, latest dividend payment, fund prices, and yields.
Additionally, you have the ability to request prospectuses, statements,
and account and tax forms; to reorder checks; and to initiate purchase,
redemption, and exchange orders for identically registered accounts.
T. Rowe Price OnLine Through a personal computer via dial-up modem, you
can replicate all the services available on Tele*Access plus conduct
transactions in your Discount Brokerage and Variable Annuity accounts.
Account Services
Checking Write checks for $500 or more on any money market and most bond
fund accounts (except the High Yield and Emerging Markets Bond Funds).
Automatic Investing Build your account over time by investing directly
from your bank account or paycheck with Automatic Asset Builder.
Additionally, Automatic Exchange enables you to set up systematic
investments from one fund account into another, such as from a money fund
into a stock fund. A $50 minimum makes it easy to get started.
Automatic Withdrawal If you need money from your fund account on a
regular basis, you can establish scheduled, automatic redemptions.
Dividend and Capital Gains Payment Options Reinvest all or some of your
distributions, or take them in cash. We give you maximum flexibility and
convenience.
DISCOUNT BROKERAGE*
Investments Available You can trade stocks, bonds, options, precious
metals, and other securities at a savings over regular commission rates.
To Open an Account Call a shareholder service representative for more
information.
Investment Information
Combined Statement A comprehensive overview of your T. Rowe Price
accounts is provided. The summary page gives you earnings by tax category,
provides total portfolio value, and lists your investments by type-stock,
bond, and money market. Detail pages itemize account transactions by fund.
Shareholder Reports Portfolio managers review the performance of the
funds in plain language and discuss T. Rowe Price's economic outlook.
T. Rowe Price Report This is a quarterly newsletter with relevant
articles on market trends, personal financial planning, and T. Rowe
Price's economic perspective.
Performance Update This quarterly report reviews recent market
developments and provides comprehensive performance information for every
T. Rowe Price fund.
Insights This library of information includes reports on mutual fund tax
issues, investment strategies, and financial markets.
Detailed Investment Guides Our widely acclaimed Asset Mix Worksheet,
College Planning Kit, Diversifying Overseas: A Guide to International
Investing, Retirees Financial Guide, and Retirement Planning Kit (also
available on disk for PC use) can help you determine and reach your
investment goals.
*A division of T. Rowe Price Investment Services, Inc. Member NASD/SIPC.
T. Rowe Price Mutual Funds
Stock Funds
Domestic
Blue Chip Growth
Capital Appreciation
Capital Opportunity
Diversified Small-Cap Growth
Dividend Growth
Equity Income
Equity Index 500*
Extended Equity Market Index
Financial Services
Growth & Income
Growth Stock
Health Sciences
Media & Telecommunications**
Mid-Cap Growth
Mid-Cap Value
New America Growth
New Era
New Horizons***
Real Estate
Science & Technology
Small-Cap Stock
Small-Cap Value***
Spectrum Growth
Total Equity Market Index
Value
International/Global
Emerging Markets Stock
European Stock
Global Stock
International Discovery
International Stock
Japan
Latin America
New Asia
Spectrum International
Bond Funds
Domestic Taxable
Corporate Income
GNMA
High Yield
New Income
Short-Term Bond
Short-Term U.S. Government
Spectrum Income
Summit GNMA
Summit Limited-Term Bond
U.S. Treasury Intermediate
U.S. Treasury Long-Term
Domestic Tax-Free
California Tax-Free Bond
Florida Insured
Intermediate Tax-Free
Georgia Tax-Free Bond
Maryland Short-Term
Tax-Free Bond
Maryland Tax-Free Bond
New Jersey Tax-Free Bond
New York Tax-Free Bond
Summit Municipal Income
Summit Municipal Intermediate
Tax-Free High Yield
Tax-Free Income
Tax-Free Insured
Intermediate Bond
Tax-Free Short-Intermediate
Virginia Short-Term
Tax-Free Bond
Virginia Tax-Free Bond
International/Global
Emerging Markets Bond
Global Government Bond
International Bond
Money Market Funds!
Taxable
Prime Reserve
Summit Cash Reserves
U.S. Treasury Money
Tax-Free
California Tax-Free Money
New York Tax-Free Money
Summit Municipal
Money Market
Tax-Exempt Money
Blended Asset Funds
Balanced
Personal Strategy Balanced
Personal Strategy Growth
Personal Strategy Income
Tax-Efficient Balanced
T. Rowe Price No-Load
Variable Annuity
Equity Income Portfolio
International Stock Portfolio
Limited-Term Bond Portfolio
Mid-Cap Growth Portfolio
New America Growth Portfolio
Personal Strategy Balanced Portfolio
Prime Reserve Portfolio
* Formerly the Equity Index Fund.
** Formerly the closed-end New Age Media Fund. Converted to open-end
status on 7/28/97.
*** Closed to new investors.
! Neither the funds nor their share prices are guaranteed by the
U.S. government.
Please call for a prospectus. Read it carefully before you invest or send
money.
The T. Rowe Price No-Load Variable Annuity [#V6021] is issued by Security
Benefit Life Insurance Company. In New York, it [#FSB201(11-96)] is issued
by First Security Benefit Life Insurance Company of New York, White
Plains, NY. T. Rowe Price refers to the underlying portfolios' investment
managers and the distributors, T. Rowe Price Investment Services, Inc.; T.
Rowe Price Insurance Agency, Inc.; and T. Rowe Price Insurance Agency of
Texas, Inc. The Security Benefit Group of Companies and the T. Rowe Price
companies are not affiliated. The variable annuity may not be available in
all states. The contract has limitations. Call a representative for costs
and complete details of the coverage.
For yield, price, last transaction,
current balance, or to conduct
transactions, 24 hours, 7 days
a week, call Tele*Access(registered trademark):
1-800-638-2587 toll free
For assistance
with your existing
fund account, call:
Shareholder Service Center
1-800-225-5132 toll free
410-625-6500 Baltimore area
To open a Discount Brokerage
account or obtain information,
call: 1-800-638-5660 toll free
Internet address:
www.troweprice.com
T. Rowe Price Associates
100 East Pratt Street
Baltimore, Maryland 21202
This report is authorized for
distribution only to shareholders
and to others who have received
a copy of the prospectus of the
T. Rowe Price New York Tax-Free Funds.
Investor Centers:
101 East Lombard St.
Baltimore, MD 21202
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Invest With Confidence(registered trademark)
T. Rowe Price
T. Rowe Price Investment Services, Inc., Distributor.
C04-050 2/28/98
