<PAGE>
Semiannual Report
New York
Tax-Free
Funds
August 31, 1998
T. Rowe Price
<PAGE>
REPORT HIGHLIGHTS
New York Tax-Free Funds
. Fund returns were in line with or better than the peer group averages for
the 6- and 12-month periods ended August 31, 1998.
. Results were boosted by an emphasis on strong New York City securities and
below-average expenses.
. Low inflation, budget surpluses, and cash flows into fixed income
investments benefited municipal securities during the past six months.
. New York City bonds enjoyed another credit upgrade; both the state and city
were helped by continued economic growth.
. Yields on New York bonds should continue to fall. Tax-exempt securities
look very attractive compared with their taxable counterparts.
<PAGE>
FELLOW SHAREHOLDERS
Low inflation, budget surpluses at federal and state levels, and asset shifts
toward fixed income investments aided the municipal market during the six months
ended August 31. Your funds benefited in this environment and turned in
performances in line with or ahead of their respective benchmarks for the past
6- and 12-month periods, a reflection of our portfolio management decisions and
below-average expenses.
MARKET ENVIRONMENT
Municipal bond prices rose during the past six months, and yields across the
maturity spectrum fell as a result. The performance of tax-exempt securities
exceeded most asset classes but was not as strong as the Treasury market, which
further solidified its position as a safe haven for global investors seeking a
refuge from problems in Asia, Russia, and Latin America.
The gap between yields on municipal and Treasury securities continued to narrow,
making tax-exempt investments particularly attractive compared with Treasuries.
A near-record supply of tax-exempt bond issues constrained the municipal market
somewhat throughout the year and contributed to the contracting yield spread.
During the same period, Treasury issuance continued to decline.
The 30-year AAA general obligation bond yield fell 15 basis points from the end
of February through August 31. By comparison, the bellwether 30-year Treasury
yield declined a more dramatic 60 basis points, including a 40-basis-point drop
in August alone. The pattern was similar for one- and five-year maturities,
whose yields slipped 10 and 20 basis points, respectively, while comparable
Treasury yields
1
<PAGE>
Preparing For The Year 2000
The Year 2000 draws closer every day, and it holds special meaning beyond the
arrival of a new millennium. The issue for investors is that many computer
programs throughout the world use two digits instead of four to identify the
year and may assume the next century starts with 1900. If these programs are not
modified, they will not be able to correctly handle the century change when the
year changes from "99" to "00" on January 1, 2000, and they will no longer
be able to perform necessary functions. The Year 2000 issue affects all
companies and organizations.
T. Rowe Price has been taking steps to assure that its computer systems and
processes are capable of functioning in the Year 2000. Detailed plans for
remediation efforts have been developed and are currently being executed.
OUR PLAN OF ACTION
We began to address these issues several years ago by requiring that all new
systems process and store four-digit years. We plan to complete all
reprogramming efforts for the major application systems, including business
applications required to service our customers and processing infrastructure
necessary to ensure the integrity of customer data and investments, by December
31, 1998, leaving a full 12 months for system testing. Because we exchange data
electronically with customers and vendors, we are working with them to assess
the adequacy of their own compliance efforts. Our goal is to ensure the
continuation of the same level of service to all our mutual fund shareholders
and clients after December 31, 1999.
We are asking all vendors and companies we do business with for a Year 2000
compliance status, with the expectation that some organizations will not be able
to modify their interface files prior to December 31, 1999. Our goal is to
identify any noncompliant files so that we can implement alternative solutions.
In addition, we are scheduling tests for critical vendors and companies that
claim Year 2000 compliance to ensure that time-related data and calculations
function properly as we move into the next century.
SMOOTH TRANSITION EXPECTED
We believe our programs and initiatives will provide a smooth transition into
the next millennium. We are assessing all systems providing products or services
to our retail mutual fund shareholders, retirement plan sponsors and
participants, and we are taking steps to make modifications where necessary for
the Year 2000. Our plan provides time to develop solutions for all noncompliant
systems and data files from customers or vendors.
The Securities Industry Association (SIA) is coordinating Year 2000 testing to
assure that securities markets, clearing corporations, depositories, and third
party software and hardware vendors can send, receive, and process files and
transactions accurately. T. Rowe Price will participate in this industry-wide
effort.
For a more detailed discussion of our Year 2000 effort, as well as continuing
updates on our progress, please check our Web site (www.troweprice.com).
2
<PAGE>
dropped more sharply. Therefore, when income taxes are considered, municipal
securities yielded substantially more than many other fixed income investments.
Both New York State and City exhibited strong economic growth so far this year.
State unemployment was the lowest since 1990, falling to 5.6% from 6.6% a year
ago. These positive trends along with record earnings on Wall Street helped
boost tax revenue almost 17% from last year.
Through its own economic expansion and responsible fiscal management, New York
City earned another credit upgrade to A-, this time from Standard & Poor's.
While its growth has been diversified, the city still relies heavily on the
financial services sector. Recent stock market volatility underscores that the
city cannot depend on perpetual expansion in its most valued industry.
Supply of newly issued New York debt set a record pace in the first half of the
year and included the huge $4.5 billion Long Island Power Authority
restructuring. The bulge in supply created opportunities, but it also
restrained the performance of New York bonds.
NEW YORK TAX-FREE MONEY FUND
Your fund's performance was in line with that of its peer group average during
the six-month period ended August 31, as we sought good value at both ends of
the short-term yield curve. Results slightly outpaced the Lipper average for the
12-month term.
PERFORMANCE COMPARISON
<TABLE>
<CAPTION>
Periods Ended 8/31/98 6 Months 12 Months
- ------------------------------------------------------
<S> <C> <C>
New York Tax-Free
Money Fund 1.48% 3.04%
Lipper New York Tax-Exempt
Money Market Funds Average 1.48 3.00
</TABLE>
During the past six months, six-month and one-year municipal note yields were
fairly stable, varying only 35 basis points between high and low. On average,
one-year maturities offered only an additional 20 basis points over the shortest
maturities. Yields were most volatile in the variable rate sector, which
includes overnight and seven-day demand notes, vacillating 275 basis points
between their high and low points since the end of February.
3
<PAGE>
We took advantage of this opportunity to overweight the portfolio in variable
rate securities when we believed the yields had reached the upper end of their
range. In addition, throughout the entire period, we maintained a longer
weighted average maturity than the peer group average by combining the variable
rate positions with one-year maturities. This fairly aggressive posture
succeeded in adding additional yield. The fund's maturity averaged 13 days
longer than competitive funds during the period and, at one point, was 22 days
longer.
The supply of new issues in the municipal note market so far this year was 27%
below the same period in 1997. Considering the low long-term interest rates and
the improved financial condition of municipalities, we have no reason to believe
that short-term issuance will pick up during the rest of the year. A good
example is New York City, typically a bellwether issuer of short-term
securities. Last year the city issued $2 billion in revenue anticipation notes,
and this year's figure is expected to be less than $800 million. As a result,
total short-term volume may finish 1998 at the lowest level since 1990. In
addition, cash flows into money market funds remain positive, so demand coupled
with lighter supply has helped keep rates in a narrow range.
Our strategy allowed us to pick up incremental yield at the long end of the
curve and to maintain our relatively long average maturity with little fear of
rising rates.
NEW YORK TAX-FREE BOND FUND
PERFORMANCE COMPARISON
<TABLE>
<CAPTION>
Periods Ended 8/31/98 6 Months 12 Months
<S> <C> <C>
New York Tax-Free
Bond Fund 3.65% 9.30%
Lipper New York Municipal
Debt Funds Average 3.24 8.27
</TABLE>
Our emphasis on income and long-term bonds positioned the fund for solid
performance during the period. Total returns of 3.65% and 9.30% for the 6- and
12-month periods, respectively, exceeded those of the Lipper peer group average.
Fund results were a reflection of both tax-free income and some price
appreciation, which occurs only when interest rates fall as they have been doing
for the past three years. The fund's below-average expense ratio also helped to
achieve our goal.
4
<PAGE>
We held large positions in New York City bonds in anticipation of a credit
upgrade, which took place and contributed to strong performance. Maintaining a
yield advantage over much of the competition remained another core strategy.
Our aim is to provide as much return as possible through income.
We kept fund duration at an aggressive level during the past six months,
although we reduced it a bit near the end of August. (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.) As adverse financial and
economic events unfolded both here and abroad, we felt the result would be lower
domestic interest rates, including those on New York bonds. This view was
reinforced by government budget surpluses and continuing low inflation.
One fallout from the financial turmoil was higher yield premiums and lower
prices for lower-quality issues, as the prices of lower-quality securities did
not appreciate as rapidly as their higher-quality counterparts. These premiums
had been at historic lows when lower-quality bonds were outperforming, so we
view the widening yield differences as a potential opportunity, although at
present we are cautious about this sector of the market.
OUTLOOK
Federal Reserve Chairman Alan Greenspan recently suggested that the Fed's next
move could well be a lowering of key short-term rates in the face of turmoil
overseas. Just weeks before, it was widely anticipated that the Fed was leaning
toward a possible interest rate hike because of concerns about tight labor
markets and wage pressures.
We believe the rate of domestic economic growth will slow through the remainder
of the year. Exports may fall further because of weak international markets and
the strong dollar, and growth in consumer spending could decline in the
aftermath of the correction in stock prices. Commodity prices have also been
under pressure, further containing inflation. In this environment, the trend
toward lower overall interest rates should remain intact.
We expect municipal securities to remain undervalued compared with Treasuries
until demand catches up with heavy supply. However,
5
<PAGE>
investors should eventually recognize the attractive yields available in the
municipal market compared with taxable yields, and rising demand would benefit
municipal bond investors over the long term.
After a period of strong gains in New York City bonds, we will reduce our
overweighting in this area during the months ahead and redeploy the assets into
areas that appear to offer greater long-term potential. We believe yields on
New York municipal bonds will continue to drop. This market is currently very
appealing and should begin to outperform competing fixed income investments, in
our view.
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
September 18, 1998
6
<PAGE>
T. Rowe Price New York Tax-Free Funds
- --------------------------------------------------------------------------------
PORTFOLIO HIGHLIGHTS
<TABLE>
<CAPTION>
KEY STATISTICS
2/28/98 8/31/98
New York Tax-Free Money Fund
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
Price Per Share $1.00 $ 1.00
Dividends Per Share
For 6 months 0.015 0.015
For 12 months 0.031 0.030
Dividend Yield (7-Day
Compound) * 2.94% 2.84%
Weighted Average Maturity
(days) 53 60
Weighted Average Quality ** First Tier First Tier
New York Tax-Free Bond Fund
- -----------------------------------------------------------------------------------------------
Price Per Share $11.26 $ 11.32
Dividends Per Share
For 6 months 0.28 0.27
For 12 months 0.57 0.55
Dividend Yield *
For 6 months 5.15% 4.90%
For 12 months 5.29 5.09
30-Day Standardized Yield 4.24 4.40
Weighted Average Maturity
(years) 20.3 19.8
Weighted Average Effective
Duration (years) 8.3 7.7
Weighted Average Quality *** A A+
</TABLE>
* 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.
7
<PAGE>
T. Rowe Price New York Tax-Free Funds
- -------------------------------------------------------------------------------
PORTFOLIO HIGHLIGHTS
SECTOR DIVERSIFICATION
<TABLE>
<CAPTION>
Percent of Percent of
Net Assets Net Assets
2/28/98 8/31/98
New York Tax-Free Money Fund
- --------------------------------------------------------------------------
<S> <C> <C>
General Obligation - Local 23% 17%
Miscellaneous Revenue 13 14
Dedicated Tax Revenue 11 11
Water and Sewer Revenue 9 10
Ground Transportation Revenue 7 10
Prerefunded Bonds 8 9
Hospital Revenue 1 6
Nuclear Revenue 2 5
Air and Sea Transportation Revenue 5 5
Housing Finance Revenue 7 5
Electric Revenue 4 3
Educational Revenue 4 2
Escrowed to Maturity 2
General Obligation - State 3 2
All Other 1 1
Other Assets Less Liabilities 2 - 2
- --------------------------------------------------------------------------
Total 100% 100%
New York Tax-Free Bond Fund
- --------------------------------------------------------------------------
General Obligation - Local 11% 15%
Air and Sea Transportation Revenue 9 11
Dedicated Tax Revenue 10 9
Water and Sewer Revenue 11 8
Lease Revenue 9 8
Hospital Revenue 6 8
Educational Revenue 5 6
Miscellaneous Revenue 8 5
Nuclear Revenue 3 5
Prerefunded Bonds 8 4
Electric Revenue 2 4
General Obligation - State 5 4
Ground Transportation Revenue 5 4
Housing Finance Revenue 6 4
All Other 5 3
Other Assets Less Liabilities - 3 2
- --------------------------------------------------------------------------
Total 100% 100%
</TABLE>
8
<PAGE>
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
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
As of 8/31/98
- --- New York Tax-Free Money Fund $13,872
- --- Lipper New York Tax-Exempt Money Market
Funds Average $13,943
<S> <C> <C>
Aug-88 10,000 10,000
Aug-89 10,532 10,511
Aug-90 11,086 11,033
Aug-91 11,567 11,496
Aug-92 11,912 11,830
Aug-93 12,140 12,060
Aug-94 12,375 12,296
Aug-95 12,761 12,685
Aug-96 13,144 13,066
Aug-97 13,537 13,463
Aug-98 13,943 13,872
</TABLE>
<TABLE>
<S> <C> <C>
8/31/97 5.62 3.1
5.51 3.6
5.46 3.4
30-Nov 5.43 3.65
5.27 3.55
5.1 3.3
28-Feb 5.25 3.15
5.29 3.3
5.42 4.07
31-May 5.25 3.4
5.24 3
5.27 3.5
8/31/98 5.13 3
</TABLE>
New York Tax-Free Bond Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
As of 8/31/98
- --- New York Tax-Free Bond Fund $21,877
- --- Lehman Municipal Bond Index $22,426
- --- Lipper New York Municipal Debt
Funds Average $21,443
<S> <C> <C> <C>
Aug-88 10,000 10,000 10,000
Aug-89 11,099 11,126 11,016
Aug-90 11,811 11,638 11,481
Aug-91 13,203 12,974 12,753
Aug-92 14,678 14,577 14,348
Aug-93 16,469 16,471 16,257
Aug-94 16,492 16,255 16,166
Aug-95 17,954 17,324 17,408
Aug-96 18,894 18,102 18,368
Aug-97 20,641 19,755 20,015
Aug-98 22,426 21,443 21,877
</TABLE>
AVERAGE ANNUAL COMPOUND TOTAL RETURN
- --------------------------------------------------------------------------------
This table shows how the fund would have performed each year if its actual (or
cumulative) returns for the periods shown had been earned at a constant rate.
<TABLE>
<CAPTION>
Periods Ended 8/31/98 1 Year 3 Years 5 Years 10 Years
- ------------------------------------------------------------------------
<S> <C> <C> <C> <C>
New York Tax-Free Money Fund 3.04% 3.03% 2.84% 3.33%
- ------------------------------------------------------------------------
New York Tax-Free Bond Fund 9.30 7.91 6.12 8.14
- ------------------------------------------------------------------------
</TABLE>
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.
9
<PAGE>
T. Rowe Price New York Tax-Free Money Fund
- --------------------------------------------------------------------------------
Unaudited
FINANCIAL HIGHLIGHTS For a share outstanding throughout each period
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6 Months Year
Ended Ended
8/31/98 2/28/98 2/28/97 2/29/96 2/28/95 2/28/94
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE
Beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Investment activities
Net investment income 0.015* 0.031* 0.029* 0.032* 0.025* 0.018*
Distributions
Net investment income (0.015) (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 $ 1.000
Ratios/Supplemental Data
Total return# 1.48%* 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%* 0.55%*
Ratio of net investment
income to average
net assets 2.94%*+ 3.07%* 2.86%* 3.21%* 2.48%* 1.82%*
Net assets, end of period
(in thousands) $102,472 $ 95,333 $ 82,729 $ 71,040 $ 66,154 $ 57,736
</TABLE>
# Total return reflects the rate that an investor would have earned on an
investment in the fund during each period, assuming reinvestment of all
distributions.
* Excludes expenses in excess of a 0.55% voluntary expense limitation in
effect through 2/28/99.
+ Annualized.
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
T. Rowe Price New York Tax-Free Bond Fund
- --------------------------------------------------------------------------------
Unaudited
FINANCIAL HIGHLIGHTS For a share outstanding throughout each period
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6 Months Year
Ended Ended
8/31/98 2/28/98 2/28/97 2/29/96 2/28/95 2/28/94
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE
Beginning of period $ 11.26 $ 10.80 $ 10.85 $ 10.37 $ 10.98 $ 11.05
Investment activities
Net investment income 0.27 0.57 0.57* 0.58* 0.58* 0.59*
Net realized and
unrealized gain (loss) 0.13 0.46 (0.05) 0.48 (0.53) 0.09
Total from
investment activities 0.40 1.03 0.52 1.06 0.05 0.68
Distributions
Net investment income (0.27) (0.57) (0.57) (0.58) (0.58) (0.59)
Net realized gain (0.07) -- -- -- (0.08) (0.16)
Total distributions (0.34) (0.57) (0.57) (0.58) (0.66) (0.75)
NET ASSET VALUE
End of period $ 11.32 $ 11.26 $ 10.80 $ 10.85 $ 10.37 $ 10.98
Ratios/Supplemental Data
Total return# 3.65% 9.75% 5.02%* 10.44%* 0.74%* 6.31%*
Ratio of expenses to
average net assets 0.60%+ 0.61% 0.65%* 0.65%* 0.60%* 0.60%*
Ratio of net investment
income to average
net assets 4.85%+ 5.16% 5.35%* 5.42%* 5.71%* 5.31%*
Portfolio turnover rate 37.1% 55.0% 96.9% 116.0% 134.3% 84.9%
Net assets, end of period
(in thousands) $194,502 $177,393 $144,532 $134,933 $117,847 $130,347
</TABLE>
# Total return reflects the rate that an investor would have earned on an
investment in the fund during each period, assuming reinvestment of all
distributions.
* 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.
+ Annualized.
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
T. Rowe Price New York Tax-Free Money Fund
- --------------------------------------------------------------------------------
Unaudited August 31, 1998
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
NEW YORK 100.6%
Albany Municipal Water Fin. Auth.
7.50%, 12/1/17 (MBIA Insured)
(Prerefunded 12/1/98+) $ 40 $ 41
Battery Park City Auth., 7.70%, 5/1/15
(Prerefunded 5/1/99+) 600 627
Brentwood Union Free School Dist., GO, TAN
3.75%, 6/30/99 2,000 2,002
Dormitory Auth. of the State of New York
Cornell Univ., VRDN (Currently 3.20%) 2,400 2,400
Memorial Sloan Kettering Cancer Center, TECP
3.45%, 12/10/98 2,000 2,000
Oxford Univ. Press, VRDN (Currently 3.35%) 5,100 5,100
Erie County Water Auth.
VRDN (Currently 2.80%) (AMBAC Insured) 3,750 3,750
Long Island Power Auth.
Electric Systems
VRDN (Currently 3.15%) 2,000 2,000
VRDN (Currently 3.25%) 1,000 1,000
Massapequa Union Free School Dist., GO, TAN
4.00%, 6/30/99 1,000 1,003
Monroe County, GO
Public Improvement
4.20%, 6/1/99 (AMBAC Insured) 200 201
4.80%, 6/1/99 (AMBAC Insured) 20 20
4.80%, 6/1/99 (Escrowed to Maturity) 80 80
Municipal Assistance Corp. of New York City
4.30%, 7/1/99 600 603
5.00%, 7/1/99 500 505
Nassau County IDA, Cold Spring Harbor Laboratory
VRDN (Currently 3.25%) 4,800 4,800
New York City, GO
VRDN (Currently 3.30%) (MBIA Insured) 800 800
VRDN (Currently 3.75%) 7,000 7,000
7.50%, 3/15/99 (Escrowed to Maturity) 185 189
8.00%, 6/1/99 (Escrowed to Maturity) 950 980
</TABLE>
12
<PAGE>
T. Rowe Price New York Tax-Free Money Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
New York City Housing Dev.
Multifamily Rental Housing, Columbus Green
VRDN (Currently 2.85%) (FNMA Guaranteed) $ 800 $ 800
Tribeca Tower, VRDN (Currently 2.90%)* 4,000 4,000
New York City IDA, American Civil Liberties Fac.
VRDN (Currently 2.95%) 967 967
New York City Municipal Water Fin. Auth.
VRDN (Currently 3.46%) 1,400 1,400
TECP, 3.60%, 9/11/98 1,000 1,000
Water and Sewer
VRDN (Currently 3.30%) (FGIC Insured) 400 400
VRDN (Currently 3.75%) (FGIC Insured) 1,600 1,600
New York City Transitional Fin Auth.
VRDN (Currently 3.15%) 5,000 5,000
New York City Trust for Cultural Resources
American Museum of National History
VRDN (Currently 2.80%) (MBIA Insured) 3,900 3,900
New York Environmental Fac.
4.00%, 6/15/99 500 501
Clean Water Revolving Funds, 3.55%, 1/15/99 1,510 1,510
New York Housing Fin. Agency
Mental Hygiene
7.50%, 5/1/99 (Escrowed to Maturity) 200 205
State University
8.10%, 11/1/10 (Prerefunded 11/1/98+) 4,900 5,033
State University Construction
8.00%, 11/1/06 (Prerefunded 11/1/98+) 250 257
New York Medical Care Fac. Finance
7.50%, 2/15/09 (Prerefunded 2/15/99+) 85 88
7.80%, 2/15/19 (Prerefunded 2/15/99+) 2,190 2,274
New York Power Auth., General Purpose
5.75%, 1/1/99 (Escrowed to Maturity) 500 503
New York State, GO, TECP, 3.55%, 10/9/98 2,000 2,000
New York State Energy Research and Dev. Auth.
Orange and Rockland Utilities
VRDN (Currently 2.80%) (FGIC Insured) 3,600 3,600
</TABLE>
13
<PAGE>
T. Rowe Price New York Tax-Free Money Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
New York State Housing Fin. Agency
Univ. Construction
6.00%, 11/1/98 (Escrowed to Maturity) $ 50 $ 50
New York State Local Gov't. Assistance
VRDN (Currently 2.80%) 2,200 2,200
VRDN (Currently 2.85%) 2,500 2,500
New York State Power Auth.
3.45%, 3/1/99 1,885 1,885
3.60%, 9/1/98 500 500
New York State Thruway Auth.
VRDN (Currently 3.40%) 4,600 4,600
5.10%, 1/1/99 (FGIC Insured) 100 100
Highway and Bridge Trust
5.00%, 4/1/99 (MBIA Insured) 315 317
Port Auth. of New York and New Jersey
VRDN (Currently 3.30%)* 5,000 5,000
Smithtown Central School Dist., GO, TAN, 3.90%, 6/25/99 2,000 2,005
South Huntington Union Free School Dist., GO, TAN
3.90%, 6/30/99 2,000 2,005
Triborough Bridge and Tunnel Auth.
VRDN (Currently 2.80%) (FGIC Insured) 2,800 2,800
4.25%, 1/1/99 2,500 2,505
6.75%, 1/1/00 (Prerefunded 1/1/99+) 150 154
7.30%, 1/1/02 (Prerefunded 1/1/99+) 200 205
7.40%, 1/1/03 (Prerefunded 1/1/99+) 100 103
Westchester County, GO, TAN, 3.59%, 12/29/98 2,000 2,000
Westchester County Healthcare, 3.50%, 10/1/98 4,000 4,000
---------
Total New York (Cost $103,068) 103,068
---------
</TABLE>
PUERTO RICO 1.0%
<TABLE>
<S> <C> <C>
Puerto Rico Aqueduct and Sewer Auth.
8.70%, 7/1/99 (FSA Insured) (Escrowed to Maturity) 1,000 1,041
---------
Total Puerto Rico (Cost $1,041) 1,041
---------
</TABLE>
14
<PAGE>
T. Rowe Price New York Tax-Free Money Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
- -----------------------------------------------------------------------------------
In thousands
<S> <C>
Total Investments in Securities
101.6% of Net Assets (Cost $104,109) $104,109
Other Assets Less Liabilities (1,637)
---------
NET ASSETS $102,472
---------
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 102,473,746 no par value shares of
beneficial interest outstanding; unlimited number of shares authorized 102,471
---------
NET ASSETS $102,472
---------
NET ASSET VALUE PER SHARE $ 1.00
---------
</TABLE>
* Interest subject to alternative minimum tax
+ Used in determining portfolio maturity
AMBAC AMBAC Indemnity Corp.
FGIC Financial Guaranty Insurance Company
FNMA Federal National Mortgage Association
FSA Financial Security Assurance Corp.
GO General Obligation
IDA Industrial Development Authority
MBIA Municipal Bond Investors Assurance Corp.
TAN Tax Anticipation Note
TECP Tax-Exempt Commercial Paper
VRDN Variable Rate Demand Note
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
T. Rowe Price New York Tax-Free Bond Fund
- --------------------------------------------------------------------------------
Unaudited August 31, 1998
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
NEW YORK 88.8%
Albany County Airport Auth.
5.50%, 12/15/19 (FSA Insured)* $2,000 $2,087
Allegany County IDA
Hougton College Civic Fac.
5.00%, 1/15/10 495 497
5.00%, 1/15/11 520 519
5.25%, 1/15/18 400 402
Battery Park City Auth., 5.50%, 11/1/29 (AMBAC Insured) 3,150 3,307
Dormitory Auth. of the State of New York
Champlain Valley Physicians
5.00%, 7/1/17 1,760 1,761
6.00%, 7/1/09 400 456
City Univ., 5.75%, 7/1/11 (AMBAC Insured) 2,000 2,244
Columbia Univ., 5.00%, 7/1/18 1,000 995
Cornell Univ., 7.375%, 7/1/20 1,500 1,619
Dept. of Health, 5.125%, 7/1/11 1,000 1,026
Maimonides Medical Center
5.75%, 8/1/35 (MBIA Insured) 1,500 1,595
Mental Health Services Fac., 5.75%, 8/15/22 2,500 2,651
New York and Presbyterian Hosp.
Zero Coupon, 8/15/36 (AMBAC Insured) 8,410 1,113
New York Medical College
5.25%, 7/1/12 (MBIA Insured) 2,110 2,217
North Shore Health System
5.50%, 11/1/13 (MBIA Insured) 3,010 3,272
North Shore Univ. Hosp.
5.50%, 11/1/14 (MBIA Insured) 1,500 1,629
Nyack Hosp., 6.00%, 7/1/06 2,000 2,185
Oxford Univ. Press, VRDN (Currently 3.35%) 400 400
Rockefeller Univ., 6.75%, 7/1/11 1,365 1,500
Siena College, 5.75%, 7/1/26 (MBIA Insured) 2,000 2,161
St. Joseph's Hosp., 5.25%, 7/1/18 (MBIA Insured) 1,000 1,016
State Univ. Ed. Fac., 7.50%, 5/15/11 2,300 2,846
Univ. Ed. Fac., 5.00%, 5/15/17 2,100 2,090
Essex County Industrial Dev. Agency, PCR, Int'l. Paper
5.70%, 7/1/16* 1,850 1,994
</TABLE>
16
<PAGE>
T. Rowe Price New York Tax-Free Bond Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Long Island Power Auth.
5.25%, 12/1/26 $5,000 $5,030
Electric Systems, Zero Coupon, 12/1/08 (FSA Insured) 2,115 1,344
Metropolitan Transportation Auth.
Commuter Fac.
5.00%, 7/1/11 (AMBAC Insured) 2,000 2,067
5.625%, 7/1/27 (MBIA Insured) 2,000 2,131
Service Contract, 5.50%, 7/1/13 1,510 1,587
Transportation Fac.
5.875%, 7/1/27 (MBIA Insured) 2,300 2,501
Mount Sinai Union Free School Dist., GO
6.20%, 2/15/17 (AMBAC Insured) 1,025 1,199
6.20%, 2/15/18 (AMBAC Insured) 515 604
Nassau County, GO
6.50%, 11/1/13 (FGIC Insured)
(Prerefunded 11/1/04+) 1,500 1,741
Nassau County IDA
Cold Spring Harbor Laboratory
VRDN (Currently 3.25%) 1,000 1,000
Hofstra Univ.
6.90%, 1/1/14 350 409
6.90%, 1/1/15 375 439
New Rochelle, GO
6.25%, 3/15/17 (MBIA Insured) 375 418
6.25%, 3/15/18 (MBIA Insured) 400 445
6.25%, 3/15/19 (MBIA Insured) 425 473
New York City, GO
VRDN (Currently 3.30%) 250 250
VRDN (Currently 3.75%) 500 500
VRDN (Currently 3.75%) (FGIC Insured) 600 600
5.00%, 8/1/22 2,000 1,956
5.00%, 8/1/23 4,750 4,644
5.25%, 8/1/15 2,500 2,543
5.25%, 8/1/21 2,500 2,510
5.75%, 10/15/13 1,100 1,180
5.875%, 3/15/12 2,345 2,532
6.00%, 8/1/12 1,000 1,099
</TABLE>
17
<PAGE>
T. Rowe Price New York Tax-Free Bond Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
New York City, GO
6.25%, 8/1/09 $1,750 $1,979
7.625%, 2/1/14 (Prerefunded 2/1/02+) 500 566
7.75%, 8/15/15 215 239
New York City IDA
Brooklyn Navy Yard Cogeneration
5.65%, 10/1/28* 2,500 2,544
Nightingale Bamford School, 5.85%, 1/15/20 1,440 1,504
Terminal One Group Assoc., 6.00%, 1/1/19* 2,500 2,666
USTA National Tennis Center
6.375%, 11/15/14 (FSA Insured) 1,000 1,121
New York City Municipal Water Fin. Auth.
VRDN (Currently 3.25%) (FGIC Insured) 500 500
VRDN (Currently 3.46%) 700 700
Water and Sewer
5.00%, 6/15/17 (FGIC Insured) 2,000 2,000
5.25%, 6/15/29 3,000 3,022
5.875%, 6/15/26 5,000 5,341
New York City Transitional Fin Auth.
VRDN (Currently 3.15%) 1,700 1,700
4.75%, 11/15/23 5,000 4,801
New York State, GO
7.125%, 11/15/16 (Prerefunded 11/15/00+) 500 546
New York State Energy Research and Dev. Auth., PCR
Consolidated Edison, 6.75%, 1/15/27* 2,350 2,496
New York State Environmental Fac., PCR
New York City Municipal Water, 7.50%, 6/15/12 500 541
State Water Revolving Fund
5.75%, 6/15/12 1,000 1,118
6.90%, 5/15/15 530 614
6.90%, 11/15/15 750 868
New York State Housing Fin. Agency, GO
Service Contract Obligations
7.25%, 9/15/12 155 173
7.375%, 9/15/21 (Prerefunded 3/15/02+) 150 170
State Univ. Construction, 8.00%, 5/1/11
(Escrowed to Maturity) 1,000 1,304
</TABLE>
18
<PAGE>
T. Rowe Price New York Tax-Free Bond Fund
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
- -----------------------------------------------------------------------
In thousands
<S> <C> <C>
New York State Local Gov't. Assistance
5.00%, 4/1/21 $2,540 $2,564
5.00%, 4/1/23 3,000 2,938
Public Benefit, 6.00%, 4/1/14 2,000 2,292
New York State Medical Care Fac. Fin. Agency
6.125%, 2/15/14 (Prerefunded 2/15/04+) 165 185
Ellis Hosp., 8.00%, 2/15/08 (FHA Guaranteed) 40 41
Hospital and Nursing, 6.125%, 2/15/14 180 193
Mental Health Services
6.375%, 8/15/10 (FGIC Insured) 450 490
New York Hosp., 6.50%, 8/15/29 (AMBAC Insured)
(Prerefunded 2/15/05+) 2,000 2,305
New York State Mortgage Agency
Homeowner Mortgage
5.40%, 4/1/29* 1,500 1,513
6.40%, 4/1/27* 1,000 1,091
7.50%, 4/1/26* 3,245 3,548
7.75%, 4/1/16 500 526
7.95%, 10/1/15 1,135 1,182
New York State Thruway Auth., VRDN (Currently 3.40%) 300 300
New York State Urban Dev.
Correctional Capital Fac.
5.00%, 1/1/13 2,500 2,509
7.00%, 1/1/21 (Prerefunded 1/1/02+) 500 558
Niagara County, GO
Environmental Infrastructure
5.25%, 8/15/14 (MBIA Insured) 435 460
5.25%, 8/15/15 (MBIA Insured) 335 353
Niagara Frontier Transportation Airport Auth.
Greater Buffalo Int'l. Airport
6.125%, 4/1/14 (AMBAC Insured)* 1,385 1,497
North Hempstead, GO, 4.75%, 1/15/18 (FGIC Insured) 1,750 1,707
Nyack Union Free School Dist., GO
5.25%, 12/15/12 (FGIC Insured) 1,310 1,400
5.25%, 12/15/13 (FGIC Insured) 1,290 1,377
5.25%, 12/15/15 (FGIC Insured) 550 583
</TABLE>
19
<PAGE>
T. Rowe Price New York Tax-Free Bond Fund
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
- -----------------------------------------------------------------------------
In thousands
<S> <C> <C>
Onondaga County IDA, Community General Hosp.
6.625%, 1/1/18 $ 450 $ 483
Port Auth. of New York and New Jersey
5.00%, 10/1/22 2,000 1,981
5.25%, 12/1/11* 4,000 4,164
5.50%, 9/1/12 (MBIA Insured)* 900 954
5.875%, 7/1/11* 1,000 1,091
6.125%, 6/1/94 1,000 1,177
6.50%, 10/1/01* 600 638
6.50%, 7/15/19 (FGIC Insured)* 2,000 2,213
6.50%, 11/1/26* 1,500 1,611
6.75%, 4/15/26 (MBIA Insured)* 500 534
Special Project, 6.75%, 10/1/11* 1,000 1,110
Versatile Structures, VRDN (Currently 3.20%) 500 500
Syracuse IDA, St. Joseph's Hosp. Health Center
7.50%, 6/1/18 (Prerefunded 6/1/01+) 1,000 1,113
Triborough Bridge and Tunnel Auth., 5.50%, 1/1/17 1,275 1,383
United Nations Dev.
5.30%, 7/1/11 1,000 1,004
5.40%, 7/1/14 1,000 1,004
Utica Ind. Dev. Agency, Utica College, 5.75%, 8/1/28 500 505
Westchester County IDA, Wheelabrator
6.00%, 7/1/08 (AMBAC Insured)* 2,000 2,238
Western Nassau County Water Auth.
5.65%, 5/1/26 (AMBAC Insured) 1,000 1,062
Yonkers Industrial Dev. Agency, Civic Fac.
St. Joseph Hospital, 6.20%, 3/1/20 1,000 1,012
--------
Total New York (Cost $160,624) 172,686
--------
PUERTO RICO 9.0%
Puerto Rico Commonwealth, GO
Public Improvement, 4.50%, 7/1/23 1,250 1,153
Puerto Rico Electric Power Auth.
4.75%, 7/1/24 2,750 2,632
5.25%, 7/1/21 3,000 3,015
7.125%, 7/1/14 1,000 1,042
</TABLE>
20
<PAGE>
T. Rowe Price New York Tax-Free Bond Fund
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
- --------------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Puerto Rico Highway and Transportation Auth.
5.00%, 7/1/36 $ 1,000 $ 1,002
5.40%, 7/1/25 2,700 2,781
6.375%, 7/1/08 (FSA Insured) 1,000 1,098
Puerto Rico Infrastructure Fin. Auth., Special Tax
7.75%, 7/1/08 340 348
Puerto Rico Public Building Auth., GO, Gov't. Fac.
5.00%, 7/1/27 (AMBAC Insured) 3,000 2,986
5.25%, 7/1/21 1,500 1,514
--------
Total Puerto Rico (Cost $16,502) 17,571
--------
Total Investments in Securities
97.8% of Net Assets (Cost $177,126) $190,257
Other Assets Less Liabilities 4,245
--------
NET ASSETS $194,502
--------
Net Assets Consist of:
Accumulated net investment income - net of distributions $ 9
Accumulated net realized gain/loss - net of distributions 1,036
Net unrealized gain (loss) 13,131
Paid-in-capital applicable to 17,187,430 no par value
shares of beneficial interest outstanding; unlimited number
of shares authorized 180,326
--------
NET ASSETS $194,502
--------
NET ASSET VALUE PER SHARE $ 11.32
--------
</TABLE>
* 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
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.
21
<PAGE>
T. Rowe Price New York Tax-Free Funds
- -------------------------------------------------------------------------------
Unaudited
<TABLE>
<CAPTION>
Statement of Operations
- -------------------------------------------------------------------------------
In thousands Money Fund Bond Fund
6 Months 6 Months
Ended Ended
8/31/98 8/31/98
<S> <C> <C>
Investment Income
Interest income $ 1,750 $ 4,994
------------------
Expenses
Investment management 168 386
Custody and accounting 46 62
Shareholder servicing 41 77
Legal and audit 6 6
Registration 6 6
Prospectus and shareholder reports 4 7
Trustees 3 3
Miscellaneous 2 2
------------------
Total expenses 276 549
------------------
Net investment income 1,474 4,445
------------------
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities -- 1,318
Futures -- (61)
------------------
Net realized gain (loss) -- 1,257
Change in net unrealized gain or loss on securities -- 965
------------------
Net realized and unrealized gain (loss) -- 2,222
------------------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 1,474 $ 6,667
-------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
22
<PAGE>
T. Rowe Price New York Tax-Free Funds
- -------------------------------------------------------------------------------
Unaudited
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
- -----------------------------------------------------------------------------------------
In thousands Money Fund Bond Fund
6 Months Year 6 Months Year
Ended Ended Ended Ended
8/31/98 2/28/98 8/31/98 2/28/98
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
Operations
Net investment income $ 1,474 $ 2,708 $ 4,445 $ 8,048
Net realized gain (loss) -- 1 1,257 1,465
Change in net unrealized
gain or loss -- -- 965 5,151
-----------------------------------------
Increase (decrease) in
net assets from operations 1,474 2,709 6,667 14,664
-----------------------------------------
Distributions to shareholders
Net investment income (1,474) (2,708) (4,445) (8,048)
Net realized gain -- -- (1,112) --
-----------------------------------------
Decrease in net assets
from distributions (1,474) (2,708) (5,557) (8,048)
-----------------------------------------
Capital share transactions*
Shares sold 44,711 90,280 33,884 48,316
Distributions reinvested 1,416 2,609 4,384 6,138
Shares redeemed (38,988) (80,286) (22,269) (28,209)
-----------------------------------------
Increase (decrease) in
net assets from capital
share transactions 7,139 12,603 15,999 26,245
-----------------------------------------
Net Assets
Increase (decrease)
during period 7,139 12,604 17,109 32,861
Beginning of period 95,333 82,729 177,393 144,532
-----------------------------------------
End of period $102,472 $ 95,333 $194,502 $177,393
-----------------------------------------
*Share information
Shares sold 44,711 90,280 3,037 4,379
Distributions reinvested 1,416 2,609 393 558
Shares redeemed (38,988) (80,286) (1,996) (2,566)
-----------------------------------------
Increase (decrease)
in shares outstanding 7,139 12,603 1,434 2,371
</TABLE>
The accompanying notes are an integral part of these financial statements.
23
<PAGE>
T. Rowe Price New York Tax-Free Funds
- -------------------------------------------------------------------------------
Unaudited August 31, 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.
24
<PAGE>
T. Rowe Price New York Tax-Free Funds
- -------------------------------------------------------------------------------
NOTE 2 - INVESTMENT TRANSACTIONS
Purchases and sales of portfolio securities for the Bond Fund, other than short-
term securities, aggregated $69,224,000 and $66,835,000, respectively, for the
six months ended August 31, 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, all of which expires in 2005. The Money
Fund intends to retain gains realized in future periods that may be offset by
available capital loss carryforwards.
At August 31, 1998, the aggregate costs of investments for the Money and Bond
Funds for federal income tax and financial reporting purposes were $104,109,000
and $177,126,000, respectively. For the Money Fund, amortized cost is
equivalent to value; and for the Bond Fund, net unrealized gain aggregated
$13,131,000, all of which related to appreciated 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 $31,000 and $68,000 were payable at August 31, 1998 by the Money Fund
and Bond Fund, 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 August 31, 1998, and
for the six months 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, which would cause the Money
Fund's ratio of expenses to average net assets to exceed 0.55%.
25
<PAGE>
T. Rowe Price New York Tax-Free Funds
- -------------------------------------------------------------------------------
Pursuant to this agreement, $43,000 of management fees were not accrued by the
Money Fund for the six months ended August 31, 1998. In total, $137,000 remain
subject to reimbursement through February 28, 2001, and an additional $258,000
related to a previous expense limitation 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
$68,000 and $99,000, respectively, for the six months ended August 31, 1998, of
which $13,000 and $19,000, respectively, were payable at period-end.
26
<PAGE>
T. Rowe Price Shareholder Services
- -------------------------------------------------------------------------------
Investment Services And Information
Knowledgeable Service Representatives
By Phone 1-800-225-5132 Available Monday through Friday from
8 a.m. to 10 p.m. ET and weekends from 8:30 a.m. to 5 p.m. ET.
In Person Available in T. Rowe Price Investor Centers.
Account Services
Checking Available on most fixed income funds ($500 minimum).
Automatic Investing From your bank account or paycheck.
Automatic Withdrawal Scheduled, automatic redemptions.
Distribution Options Reinvest all, some, or none of your distributions.
Automated 24-Hour Services Including Tele*Access/(R)/ and the T. Rowe
Price Web site on the Internet. Address: www.troweprice.com
Discount Brokerage*
Individual Investments Stocks, bonds, options, precious metals,
and other securities at a savings over regular commission rates.
Investment Information
Combined Statement Overview of all your accounts with T. Rowe Price.
Shareholder Reports Fund managers' reviews of their strategies and
results.
T. Rowe Price Report Quarterly investment newsletter discussing
markets and financial strategies.
Performance Update Quarterly review of all T. Rowe Price fund results.
Insights Educational reports on investment strategies and financial
markets.
Investment Guides Asset Mix Worksheet, College Planning Kit,
Diversifying Overseas: A Guide to International Investing, Personal
Strategy Planner, Retirees Financial Guide, and Retirement Planning Kit.
*A division of T. Rowe Price Investment Services, Inc. Member
NASD/SIPC.
27
<PAGE>
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 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 named Equity Index.
** Formerly the closed-end New Age Media Fund. Converted to open-end status
on 7/28/97.
*** Closed to new investors.
+ Formerly named Global Government Bond.
++ Neither the funds nor their share prices are insured or guaranteed by the
U.S. government.
Please call for a prospectus. Read it carefully before investing.
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.
28
<PAGE>
T. Rowe Price Discount Brokerage
- -------------------------------------------------------------------------------
Discount Brokerage
A Division of T. Rowe Price Investment Services, Inc., Member NASD/SIPC
This low-cost service gives you the opportunity to easily consolidate all your
investments with one company. Through T. Rowe Price Discount Brokerage, you can
buy and sell individual securities--stocks, bonds, options, and others--as well
as mutual funds at considerable commission savings over full-service brokers.*
We also provide a wide range of services, including:
Automated Telephone and Internet Services You can enter trades, access
quotes, and review account information 24 hours a day, seven days a week.
Any trades executed through these programs provide additional savings on
commissions.**
Investor Information A variety of informative reports, such as our Brokerage
Insights series, S&P Market Month newsletter, and select stock reports, can
help you better evaluate economic trends and investment opportunities.
Dividend Reinvestment Service Virtually all stocks held in customer accounts
are eligible for this service, free of charge.
*Based on an April 1998 survey for representative-assisted stock trades.
Services vary by firm, and commissions may vary by size of order.
**Discount applies to our current commission schedule. All trades subject to a
$35 minimum commission except equity trades placed through Internet-Trader,
which are subject to a $29.95 minimum commission.
29
<PAGE>
For yield, price, last transaction,
current balance, or to conduct
transactions, 24 hours, 7 days
a week, call Tele*Access/(R)/:
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
T. Rowe Price
Financial Center
10090 Red Run Blvd.
Owings Mills, MD 21117
Farragut Square
900 17th Street, N.W.
Washington, D.C. 20006
ARCO Tower
31st Floor
515 South Flower St.
Los Angeles, CA 90071
4200 West Cypress St.
10th Floor
Tampa, FL 33607
[LOGO OF T. ROWE PRICE]
T. Rowe Price Investment Services, Inc., Distributor. C04-051 8/31/98
