<PAGE>
Semiannual Report
NEW YORK
TAX-FREE
FUNDS
AUGUST 31, 1999
[LOGO OF T. ROWE PRICE APPEARS HERE]
T. ROWE PRICE
<PAGE>
REPORT HIGHLIGHTS
- --------------------------------------------------------------------------------
New York Tax-Free Funds
. Strong U.S. economic growth and rising interest rates hurt the bond market
over the past six months.
. The New York Tax-Free Money Fund outpaced its Lipper benchmark for both the
6- and 12-month periods, while the New York Tax-Free Bond Fund posted
negative returns, ahead of its benchmark for the year but behind it for six
months.
. A longer maturity posture benefited the money fund relative to its peers,
but longer duration trimmed results in the long-term fund.
. While rates could trend higher, municipal bonds continue to offer
attractive after-tax yields at current levels.
UPDATES AVAILABLE
For updates on each fund following the end of every calendar quarter, please see
our Web site at WWW.TROWEPRICE.COM.
<PAGE>
FELLOW SHAREHOLDERS
The U.S. economy's above-average growth during the six months ended August 31
was good for consumers but not so good for bond investors. Interest rates rose
throughout the period as investors worried about a buildup in inflationary
pressures and the possibility -- which became an actuality -- of monetary
tightening by the Federal Reserve. As a result, declines in taxable and
municipal bond prices led to meager or negative returns on most longer-term bond
funds for the period. The New York Tax-Free Bond Fund was not immune to this
trend, while the New York Tax-Free Money Fund benefited from higher short-term
rates.
[LINE GRAPH APPEARS HERE]
NEW YORK YIELD INDEXES
New York Bond Index New York Money Index
8/31/98 5.13 3
4.91 3.35
5.13 2.85
30-Nov 5.12 3.3
5.16 3.8
5.06 2.5
28-Feb 5.16 2.75
5.22 2.85
5.26 3.9
31-May 5.36 3.1
5.57 3.3
5.66 2.9
8/31/99 5.85 3.15
MARKET ENVIRONMENT
The U.S. economy continued its robust growth, driven by exuberant consumer
spending. Although broad measures of inflation did not rise appreciably, tight
labor markets, low unemployment, and a rebound in energy prices raised fears of
a buildup in inflationary pressures. The fixed income markets reacted nervously
to these developments and to the increased likelihood of action by the Federal
Reserve. Indeed, as summer approached, Fed Chairman Alan Greenspan served clear
warning that the central bank would act to preempt a rise in inflation. Actions
soon followed words as the Fed raised key short-term interest rates on June 30
and again on August 24, pushing the federal funds target rate up a total of 50
basis points (one-half of a percentage point) to 5.25%.
1
<PAGE>
- -------------------------------------------
MARKET CHANGES SPELL HIGHER TAX-FREE YIELDS
- --------------------------------------------------------------------------------
Structural changes are taking place in the fixed income markets resulting in
higher tax-free yields for investors.
The chart below tracks the yield on 30-year, AAA general obligation municipal
bonds as a percentage of long-term Treasury bond yields since 1981.
Historically, the yield on these municipal bonds has averaged about 85% of the
Treasury yield. This discount reflected both the tax benefit of municipals and
uncertainty about future tax laws. Investors in the 31% federal tax bracket, for
example, keep only 69% of their income from taxable bonds. Therefore, they would
logically be attracted to high-quality municipal bonds offering 85% or more of
the prevailing Treasury yield.
The sharp spike in municipal yields in 1986 reflects the tax reform debate,
which posed a threat to municipal bonds' federal tax exemption. Accordingly,
municipal bond yields reached parity with Treasury yields. However, when the Tax
Reform Act of 1986 left the tax benefit intact, municipal bond prices rose
sharply until yields had fallen to more normal levels.
Recently, different forces have been at work that go beyond the impact of 1998Os
global financial crisis. At that time, shaky world markets prompted foreign
investors (who have no need for U.S. tax-exempt bonds) to buy Treasuries, and
Treasury yields plunged to near parity with municipals.
Since then, Treasury yields have returned to pre-crisis levels, but municipal
yields are again unusually high at about 94% of Treasury yields. According to
Mary Miller, director of the T. Rowe Price municipal bond department, the
current relationship is "illogical from a tax standpoint" but unlikely to change
soon.
For one thing, the supply of Treasury debt is shrinking due to the federal
budget surplus, while outstanding municipal supply continues to grow. In
addition, the supply of taxable bonds outside of Treasuries--including
corporate, asset-backed and mortgage-backed bonds--has also risen, and this has
created more competition in the market. As a result, even as tax-exempt yields
have risen in relation to Treasury yields over the past two years, they have
fallen in relation to the yields on other high-quality taxable bonds.
Over time, income makes up the vast majority of a bond investor's total return.
Therefore, these developments have given investors the opportunity to earn
higher-than-expected tax-free income with little or no sacrifice of credit
quality.
[LINE GRAPH APPEARS HERE]
MUNICIPAL/TREASURY YIELD RATIO
- --------------------------------------------------------------------------------
Treasury Ratio Treasury Average
79 84.5
78.4 84.5
'81 83.2 84.5
81.6 84.5
86.6 84.5
86.3 84.5
93.3 84.5
88.4 84.5
87.6 84.5
89.2 84.5
88.3 84.5
86.3 84.5
86.6 84.5
84.8 84.5
'82 82.1 84.5
85.5 84.5
86.3 84.5
91.9 84.5
86.5 84.5
84.1 84.5
81.9 84.5
83.7 84.5
81.4 84.5
84.9 84.5
81.9 84.5
78.8 84.5
'83 78.4 84.5
80.1 84.5
79.7 84.5
81 84.5
78.7 84.5
78.3 84.5
77.6 84.5
76.1 84.5
75.5 84.5
76.5 84.5
76.3 84.5
75.9 84.5
'84 77.6 84.5
80.4 84.5
85.1 84.5
84 84.5
83.7 84.5
79.3 84.5
79.2 84.5
80.4 84.5
79.4 84.5
80.1 84.5
80.4 84.5
82.5 84.5
'85 84.5 84.5
87.2 84.5
83.7 84.5
83.4 84.5
88 84.5
81 84.5
81.5 84.5
89.4 84.5
93.1 84.5
97.3 84.5
100.9 84.5
97 84.5
'86 93.1 84.5
89.5 84.5
87.3 84.5
87.8 84.5
87.6 84.5
85.6 84.5
86.4 84.5
86.1 84.5
90.8 84.5
89.2 84.5
90 84.5
85.5 84.5
'87 83.6 84.5
86.3 84.5
89.2 84.5
86.3 84.5
84.6 84.5
86.2 84.5
88.3 84.5
88.1 84.5
83.4 84.5
83.7 84.5
85.9 84.5
82.5 84.5
'88 81.7 84.5
83 84.5
81.9 84.5
82.2 84.5
82.3 84.5
79.9 84.5
81.2 84.5
83.1 84.5
81.3 84.5
81.4 84.5
85.3 84.5
85.9 84.5
'89 85.4 84.5
87.4 84.5
90.4 84.5
87.5 84.5
85.9 84.5
83.5 84.5
82 84.5
83 84.5
81.8 84.5
81.6 84.5
84.5 84.5
82.7 84.5
'90 80.7 84.5
81 84.5
80.9 84.5
82.2 84.5
85 84.5
83.5 84.5
83.7 84.5
84.3 84.5
83.2 84.5
82.3 84.5
82.7 84.5
82.2 84.5
'91 83.2 84.5
84.6 84.5
82.9 84.5
83.2 84.5
86.6 84.5
84.5 84.5
83.5 84.5
82.9 84.5
80.9 84.5
81.7 84.5
80.4 84.5
79.1 84.5
'92 82.4 84.5
84 84.5
84.7 84.5
81.7 84.5
82.5 84.5
83.4 84.5
79.8 84.5
83.8 84.5
81.5 84.5
81.7 84.5
81.7 84.5
83.8 84.5
'93 87 84.5
86.3 84.5
87.1 84.5
85.7 84.5
82 84.5
83.4 84.5
84.1 84.5
86.8 84.5
84.1 84.5
81.5 84.5
82.8 84.5
81.9 84.5
'94 81.9 84.5
81.3 84.5
81.7 84.5
84.4 84.5
83.8 84.5
80.5 84.5
80 84.5
80.1 84.5
81.8 84.5
84.8 84.5
89.1 84.5
86 84.5
'95 87.9 84.5
89.5 84.5
88.5 84.5
87.2 84.5
87.5 84.5
87.1 84.5
84.4 84.5
85.6 84.5
84.1 84.5
84.4 84.5
83.4 84.5
81.8 84.5
'96 80.9 84.5
80.1 84.5
82.8 84.5
84.2 84.5
82.2 84.5
81.8 84.5
80.9 84.5
81 84.5
80.7 84.5
79.6 84.5
80.4 84.5
81.8 84.5
'97 81 84.5
82 84.5
85 84.5
85.7 84.5
84.8 84.5
86.2 84.5
85.8 84.5
86.5 84.5
87.4 84.5
87.1 84.5
89.7 84.5
89.2 84.5
'98 93.8 84.5
97.3 84.5
95.6 84.5
96.3 84.5
97.4 84.5
95.5 84.5
89.5 84.5
89.7 84.5
89.8 84.5
88.5 84.5
89.2 84.5
88.5 84.5
Aug-99 92.3 84.5
2
<PAGE>
With these moves the Fed effectively rescinded two of its three rate reductions
last fall, when it had moved swiftly to ease a global financial crisis. Signs of
recovery in many Asian and Latin American nations most affected by that crisis
helped push the U.S. dollar lower and interest rates higher.
Interest rates rose across all maturities, with the bellwether 30-year Treasury
bond rising from near 5% at the beginning of the year to over 6% for the first
time since mid-1998. Short-term yields rose a bit more than intermediate and
long-term bond yields over the period, creating a flatter yield curve -- a
typical occurrence when the Fed is actively raising short-term rates. Municipal
market interest rates also rose throughout the period, as shown in the chart.
Municipals were helped by strong seasonal demand in July through the
reinvestment of proceeds from maturing bonds and other cashflows. Thus, for much
of the past six months, overall returns on municipals compared favorably with
their taxable counterparts, although both were modest at best.
In August, however, this trend reversed. A heavy supply of corporate bonds in
the market pushed up their yields and attracted "crossover" institutional buyers
- -- those who buy either corporate or municipal bonds depending on their
after-tax yields. The drop in demand for municipals from these institutional
investors (some of whom also sold municipals from their portfolios), combined
with a reluctance by dealers to add to their bond inventories, created a weak
market tone. After outperforming taxable bonds through July, municipals lost
ground in August, and their performance fell more in line with taxable
securities for the entire six-month period.
...NEW YORK CONTINUED TO ENJOY SOLID OVERALL FISCAL HEALTH...
On a regional level, the State of New York continued to enjoy solid overall
fiscal health, as witnessed by the lack of short-term borrowing by New York
issuers. New York State was once a mainstay of the short-term municipal note
market and has not found it necessary to issue notes since 1993. Similarly, the
City of New York has substantially reduced its annual borrowing in recent years.
Last year's $500 million debt issuance was about one-fourth of its level in
recent years, and so far in 1999 it is not yet certain whether the city will
market an offering of Revenue Anticipation Notes.
3
<PAGE>
The state's economy continued to expand, although there are some signs of recent
slowing. Most major employment sectors recorded job gains, with most of the
growth taking place in the downstate areas. However, upstate economic
performance remained less than robust and New York City, the engine of the
state's economy, has been showing some signs of a slight slowdown. The economies
of both the city and the state rely heavily on the financial and business
services industries, so the level of activity in these areas is critical to
future growth.
NEW YORK TAX-FREE MONEY FUND
- ----------------------
PERFORMANCE COMPARISON
- ----------------------
Periods Ended 8/31/99 6 Months 12 Months
- ----------------------------------------------------
New York Tax-Free
Money Fund 1.29% 2.62%
- ----------------------------------------------------
Lipper New York Tax-Exempt
Money Market Funds Average 1.27 2.56
- ----------------------------------------------------
The fund's results were ahead of its Lipper peer group average for both the 6-
and 12-month periods ended August 31, 1999. During the past six months,
short-term tax-exempt yields moved higher as the Federal Reserve lifted the
federal funds rate twice, as mentioned. On August 31 yields in the 30- to 90-day
range were 50 basis points higher than six months earlier while 6- and 12-month
rates were up 75 basis points. Additionally, later in the reporting period the
short-term tax-exempt yield curve grew noticeably steeper as one-year securities
yielded 65 basis points more than one- to seven-day maturities. This contrasted
with a difference of 15 basis points on February 28.
We took advantage of these changes by maintaining a longer-than-average weighted
average maturity (WAM) throughout the period. On February 28, WAM was 50 days
compared with 39 days for the peer group average. As we approached summer, we
allowed our average maturity to drift down closer to the average, and by the end
of May maturity was neutral vis-a-vis our competitors. This more neutral posture
coincided well with the beginning of the increase in new note issuance that
usually occurs in the summer and with the Fed's rate hikes. On August 31, the
fund's WAM of 59 days was seven days longer than the peer group average.
Growth in money market fund assets has slowed markedly so far in 1999.
Tax-exempt funds, which total $192.8 billion, increased by only 2.7%, the lowest
rate of increase in six years. Total assets in New York funds overall are
modestly lower than six months ago. However,
4
<PAGE>
this slow growth in demand for short-term municipals has been well balanced by
manageable supply.
NEW YORK TAX-FREE BOND FUND
- ----------------------
PERFORMANCE COMPARISON
- ----------------------
Periods Ended 8/31/99 6 Months 12 Months
- ----------------------------------------------------
New York Tax-Free
Bond Fund -3.87% -1.61%
- ----------------------------------------------------
Lipper New York Municipal
Debt Funds Average -3.49 -1.64
- ----------------------------------------------------
Against a backdrop of sharply rising interest rates during the past six months,
municipal tax-exempt bonds fared poorly along with longer-term taxable
securities. Your fund posted negative returns for the 6- and 12-month periods
and trailed the average return for the Lipper universe of competing funds during
the past six months, but slightly surpassed it over 12 months. Dividends per
share of $0.26 and $0.53, respectively, for the 6- and 12-month periods failed
to overcome the decline in net asset value.
The fund's relatively weak results were due to our longer duration and exposure
to higher-quality bonds, which were more adversely affected by rising rates than
lower-rated securities. (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.) At the end of August, the fund's duration stood at 9.3 years,
up from 8.0 years at the end of February. The fund's weighted average credit
quality was A+, based on our in-house rating system. Much of the extension in
duration was a result of various bonds in the portfolio trading to their
maturities as rates rose rather than to their shorter call dates. Bonds that
trade to the longer maturity dates are more sensitive to fluctuations in
interest rates; with rates rising during the past six months, their loss of
principal value was greater.
We have begun to establish positions in bonds maturing in 15 to 20 years to take
advantage of the current high yields. In addition, we have added to bonds with
slightly lower ratings to bolster the fund's dividend yield, which stood at
4.98% at the end of August. Our comprehensive in-house research enables us to
identify lower-rated bonds with good prospects. We also increased the
portfolio's allocation to dedicated tax-backed bonds. We believe these steps
will position the fund well for the remainder of its fiscal year.
5
<PAGE>
OUTLOOK
Interest rates could move higher in coming months because of persistent strength
in the domestic economy and recovery overseas. The Fed is keeping a close eye on
inflationary pressures, particularly in the labor markets, and could tighten
another 25 basis points if it intends to move the federal funds rate back to its
level of a year ago. However, the Fed is also interested in maintaining a liquid
and orderly market as we approach the end of the year and the transition to
2000, which could serve to moderate future rate increases. At the same time, it
is important to recognize that the increase in rates so far this year could be
enough to slow certain sectors of the economy. At present, we are focusing on
the higher yields available in the marketplace and on the current appeal of
tax-free municipal bonds relative to taxable securities.
In New York, despite reduced borrowing in recent years, the overall level of
public debt remains high. High debt combined with relatively low reserves could
leave the state vulnerable to a slowdown in economic growth. However, on a
positive note, New York's recent budget plan called for a modest pay-as-you-go
capital funding mechanism, which should restrain future borrowing and bolster
the creditworthiness of New York State securities.
Respectfully submitted,
/s/ Patrice L. Berchtenbreiter
Patrice L. Berchtenbreiter
Chairman of the Investment Advisory Committee
New York Tax-Free Money Fund
/s/ William F. Snider
William F. Snider
Chairman of the Investment Advisory Committee
New York Tax-Free Bond Fund
September 24, 1999
6
<PAGE>
T. ROWE PRICE NEW YORK TAX-FREE FUNDS
- --------------------------------------------------------------------------------
- --------------------
PORTFOLIO HIGHLIGHTS
- --------------------------------------------------------------------------------
KEY STATISTICS
2/28/99 8/31/99
New York Tax-Free Money Fund
- --------------------------------------------------------------------------------
Price Per Share $1.00 $1.00
- --------------------------------------------------------------------------------
Dividends Per Share
- --------------------------------------------------------------------------------
For 6 months 0.013 0.013
----------------------------------------------------------------------------
For 12 months 0.028 0.026
----------------------------------------------------------------------------
Dividend Yield (7-Day Compound) * 2.37% 2.65%
- --------------------------------------------------------------------------------
Weighted Average Maturity (days) 50 59
- --------------------------------------------------------------------------------
Weighted Average Quality ** First Tier First Tier
- --------------------------------------------------------------------------------
New York Tax-Free Bond Fund
- --------------------------------------------------------------------------------
Price Per Share $11.23 $10.53
- --------------------------------------------------------------------------------
Dividends Per Share
- --------------------------------------------------------------------------------
For 6 months 0.26 0.26
----------------------------------------------------------------------------
For 12 months 0.53 0.53
----------------------------------------------------------------------------
Dividend Yield *
- --------------------------------------------------------------------------------
For 6 months 4.78% 4.98%
----------------------------------------------------------------------------
For 12 months 4.88 5.10
----------------------------------------------------------------------------
30-Day Standardized Yield 4.15 4.94
- --------------------------------------------------------------------------------
Weighted Average Maturity (years) 19.9 18.7
- --------------------------------------------------------------------------------
Weighted Average Effective Duration (years) 8.0 9.3
- --------------------------------------------------------------------------------
Weighted Average Quality *** A+ A+
- --------------------------------------------------------------------------------
* Dividends earned and reinvested for the periods indicated are annualized
and divided by the fund's net asset value at the end of the 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 FUND
- --------------------------------------------------------------------------------
- --------------------
PORTFOLIO HIGHLIGHTS
- --------------------
SECTOR DIVERSIFICATION
Percent of Percent of
Net Assets Net Assets
2/28/99 8/31/99
New York Tax-Free Money Fund
- --------------------------------------------------------------------------------
Miscellaneous Revenue 12% 13%
- --------------------------------------------------------------------------------
Housing Finance Revenue 10 12
- --------------------------------------------------------------------------------
Prerefunded Bonds 7 12
- --------------------------------------------------------------------------------
Dedicated Tax Revenue 15 11
- --------------------------------------------------------------------------------
Nuclear Revenue 5 10
- --------------------------------------------------------------------------------
General Obligation - Local 14 8
- --------------------------------------------------------------------------------
Water and Sewer Revenue 6 8
- --------------------------------------------------------------------------------
Hospital Revenue 5 8
- --------------------------------------------------------------------------------
Educational Revenue 7 7
- --------------------------------------------------------------------------------
Electric Revenue 5 4
- --------------------------------------------------------------------------------
Industrial and Pollution Control Revenue 6 3
- --------------------------------------------------------------------------------
General Obligation - State 2 2
- --------------------------------------------------------------------------------
All Other 11 3
- --------------------------------------------------------------------------------
Other Assets Less Liabilities - 5 - 1
- --------------------------------------------------------------------------------
Total 100% 100%
New York Tax-Free Bond Fund
- --------------------------------------------------------------------------------
Dedicated Tax Revenue 11% 16%
- --------------------------------------------------------------------------------
Lease Revenue 11 11
- --------------------------------------------------------------------------------
General Obligation - Local 12 10
- --------------------------------------------------------------------------------
Hospital Revenue 6 10
- --------------------------------------------------------------------------------
Water and Sewer Revenue 7 7
- --------------------------------------------------------------------------------
Air and Sea Transportation Revenue 7 7
- --------------------------------------------------------------------------------
Educational Revenue 8 7
- --------------------------------------------------------------------------------
Housing Finance Revenue 5 6
- --------------------------------------------------------------------------------
Ground Transportation Revenue 7 5
- --------------------------------------------------------------------------------
Prerefunded Bonds 5 4
- --------------------------------------------------------------------------------
Nuclear Revenue 5 4
- --------------------------------------------------------------------------------
Miscellaneous Revenue 4 3
- --------------------------------------------------------------------------------
Industrial and Pollution Control Revenue 3 3
- --------------------------------------------------------------------------------
Electric Revenue 3 3
- --------------------------------------------------------------------------------
All Other 6 3
- --------------------------------------------------------------------------------
Other Assets Less Liabilities -- 1
- --------------------------------------------------------------------------------
Total 100% 100%
8
<PAGE>
T. ROWE PRICE NEW YORK TAX-FREE FUNDS
- --------------------------------------------------------------------------------
- ----------------------
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
These charts show the value of a hypothetical $10,000 investment in the fund
over the past 10 fiscal year periods or since inception (for funds lacking
10-year records). The result is compared with benchmarks, which may include a
broad-based market index and a peer group average or index. Market indexes do
not include expenses, which are deducted from the fund returns as well as mutual
fund averages and indexes.
NEW YORK TAX-FREE MONEY FUND
- --------------------------------------------------------------------------------
[LINE GRAPH APPEARS HERE]
Lipper New York New York
Tax-Exempt Money Tax-Free
Market Funds Average Money Fund
Aug-89 10,000 10,000
Aug-90 10,525 10,497
Aug-91 10,982 10,937
Aug-92 11,307 11,255
Aug-93 11,522 11,474
Aug-94 11,743 11,699
Aug-95 12,108 12,068
Aug-96 12,467 12,431
Aug-97 12,838 12,809
Aug-98 13,221 13,198
Aug-99 13,555 13,543
NEW YORK TAX FREE BOND FUND
- --------------------------------------------------------------------------------
[LINE GRAPH APPEARS HERE]
Lipper New York
Lehman Municipal Municipal Debt New York Tax-
Bond Index Funds Average Free Bond Fund
Aug-90 10,642 10,457 10,422
Aug-91 11,897 11,662 11,576
Aug-92 13,225 13,106 13,024
Aug-93 14,838 14,815 14,758
Aug-94 14,859 14,616 14,675
Aug-95 16,176 15,560 15,802
Aug-96 17,024 16,268 16,674
Aug-97 18,598 17,757 18,169
Aug-98 20,207 19,286 19,859
Aug-99 20,307 18,996 19,539
- ------------------------------------
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.
Periods Ended 8/31/99 1 Year 3 Years 5 Years 10 Years
- -------------------------------------------------------------------------
New York Tax-Free Money Fund 2.62% 2.90% 2.97% 3.08%
- -------------------------------------------------------------------------
New York Tax-Free Bond Fund -1.61 5.43 5.89 6.93
- -------------------------------------------------------------------------
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.
Investments in the Money Fund are not insured or guaranteed by the FDIC or any
other government agency. Although it seeks to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in the
fund.
9
<PAGE>
T. ROWE PRICE NEW YORK TAX-FREE FUND
- --------------------------------------------------------------------------------
Unaudited
- --------------------
FINANCIAL HIGHLIGHTS For a share outstanding throughout each period
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6 Months Year
Ended Ended
8/31/99 2/28/99 2/28/98 2/28/97 2/29/96 2/28/95
NET ASSET VALUE
<S> <C> <C> <C> <C> <C> <C>
Beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Investment activities
Net investment income 0.013* 0.028* 0.031* 0.029* 0.032* 0.025*
Distributions
Net investment income (0.013) (0.028) (0.031) (0.029) (0.032) (0.025)
------------------------------------------------------------------------------------------------------
NET ASSET VALUE
End of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Total return** 1.29%* 2.81%* 3.11%* 2.91%* 3.26%* 2.49%*
- -----------------------------------------------------------------------------------------------------------------------------------
Ratio of total 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 2.55%*+ 2.77%* 3.07%* 2.86%* 3.21%* 2.48%*
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $ 107,086 $ 106,199 $ 95,333 $ 82,729 $ 71,040 $ 66,154
- -----------------------------------------------------------------------------------------------------------------------------------
</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 2/28/01.
+ 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
8/31/99 2/28/99 2/28/98 2/28/97 2/29/96 2/28/95
NET ASSET VALUE
<S> <C> <C> <C> <C> <C> <C>
Beginning of period $ 11.23 $ 11.26 $ 10.80 $ 10.85 $ 10.37 $ 10.98
-----------------------------------------------------------------------------------------------
Investment activities
Net investment income 0.26 0.53 0.57 0.57* 0.58* 0.58*
Net realized and
unrealized gain (loss) (0.69) 0.13 0.46 (0.05) 0.48 (0.53)
-----------------------------------------------------------------------------------------------
Total from
investment activities (0.43) 0.66 1.03 0.52 1.06 0.05
-----------------------------------------------------------------------------------------------
Distributions
Net investment income (0.26) (0.53) (0.57) (0.57) (0.58) (0.58)
Net realized gain (0.01) (0.16) -- -- -- (0.08)
-----------------------------------------------------------------------------------------------
Total distributions (0.27) (0.69) (0.57) (0.57) (0.58) (0.66)
-----------------------------------------------------------------------------------------------
NET ASSET VALUE
End of period $ 10.53 $ 11.23 $ 11.26 $ 10.80 $ 10.85 $ 10.37
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Total return** (3.87)% 6.08% 9.75% 5.02%* 10.44%* 0.74%*
-----------------------------------------------------------------------------------------------
Ratio of total expenses to
average net assets 0.58%+ 0.59% 0.61% 0.65%* 0.65%* 0.60%*
-----------------------------------------------------------------------------------------------
Ratio of net investment
income to average
net assets 4.75%+ 4.77% 5.16% 5.35%* 5.42%* 5.71%*
-----------------------------------------------------------------------------------------------
Portfolio turnover rate 77.5%+ 55.4% 55.0% 96.9% 116.0% 134.3%
-----------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $ 208,813 $ 216,010 $ 177,393 $ 144,532 $ 134,933 $ 117,847
-----------------------------------------------------------------------------------------------
</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, 1999
<TABLE>
<CAPTION>
- -----------------------
STATEMENT OF NET ASSETS Par Value
- -----------------------------------------------------------------------------------------
In thousands
<S> <C> <C>
NEW YORK 98.7%
Albany County, 7.00%, 10/1/00 (Prerefunded 10/1/99+)
(FGIC Insured) $ 600 $ 620
--------------------------------------------------------------------------------------
Dormitory Auth. of the State of New York
City Univ. System
7.50%, 7/1/20 (FGIC Insured)
(Prerefunded 7/1/00+) 2,000 2,101
-------------------------------------------------------------------------------
7.875%, 7/1/17 (Prerefunded 7/1/00+) 300 321
-------------------------------------------------------------------------------
Cornell Univ.,
VRDN (Currently 2.95%) 2,500 2,500
-------------------------------------------------------------------------------
TECP, 3.40%, 10/12/99 1,000 1,000
-------------------------------------------------------------------------------
Manhattanville College
7.50%, 7/1/22 (MBIA Insured)
(Prerefunded 7/1/00+) 500 526
-------------------------------------------------------------------------------
Memorial Sloan Kettering Cancer Center
VRDN (Currently 2.95%) 5,400 5,400
-------------------------------------------------------------------------------
Metropolitan Museum of Art
VRDN (Currently 3.10%) 605 605
-------------------------------------------------------------------------------
Oxford Univ. Press, VRDN (Currently 2.95%) 5,120 5,120
----------------------------------------------------------------------------------
State Univ
6.60%, 11/1/99 300 302
-------------------------------------------------------------------------------
7.25%, 5/15/04 (Prerefunded 5/15/00+) 830 869
-------------------------------------------------------------------------------
7.375%, 5/15/14 (Prerefunded 5/15/00+) 245 256
-------------------------------------------------------------------------------
7.70%, 5/15/12 (Prerefunded 5/15/00+) 2,470 2,594
--------------------------------------------------------------------------------------
Erie County Water Auth
VRDN (Currently 3.10%) (AMBAC Insured) 3,750 3,750
--------------------------------------------------------------------------------------
Great Neck Water Auth
VRDN (Currently 3.20%) (FGIC Insured) 525 525
--------------------------------------------------------------------------------------
Lawrence County IDA, ALCOA, VRDN (Currently 3.25%) * 3,300 3,300
--------------------------------------------------------------------------------------
Manhasset Union Free School Dist., GO, TAN, 4.00%, 6/29/00 1,000 1,004
--------------------------------------------------------------------------------------
Metropolitan Transportation Auth
TECP, 3.40%, 2/14/00 1,000 1,000
-------------------------------------------------------------------------------
Transit Fac., 7.50%, 7/1/19 (Prerefunded 7/1/00+) 100 105
--------------------------------------------------------------------------------------
Municipal Assistance Corp. of New York City
VRDN (Currently 3.32%) 2,300 2,300
--------------------------------------------------------------------------------------
Nassau County IDA, Cold Spring Harbor Laboratory
VRDN (Currently 2.90%) 2,300 2,300
--------------------------------------------------------------------------------------
</TABLE>
12
<PAGE>
T. ROWE PRICE NEW YORK TAX-FREE BOND FUND
- --------------------------------------------------------------------------------
Par Value
- --------------------------------------------------------------------------------
In thousands
New York City, GO
VRDN (Currently 2.85%) $ 200 $ 200
--------------------------------------------------------------------
VRDN (Currently 3.50%) 600 600
--------------------------------------------------------------------
VRDN (Currently 3.50%) (FGIC Insured) 1,150 1,150
--------------------------------------------------------------------
7.00%, 10/1/16 (Prerefunded 10/1/99+) 30 30
--------------------------------------------------------------------
7.20%, 2/1/00 (Escrowed to Maturity) 30 31
--------------------------------------------------------------------
7.25%, 3/15/18 (Prerefunded 3/15/00+) 320 404
--------------------------------------------------------------------
7.25%, 3/15/20 (Prerefunded 3/15/00+) 2,000 2,000
--------------------------------------------------------------------
7.40%, 10/1/99 (Escrowed to Maturity) 350 351
--------------------------------------------------------------------
7.50%, 10/1/13 (Prerefunded 10/1/99+) 290 295
--------------------------------------------------------------------
7.75%, 3/15/04 (Prerefunded 3/15/00+) 500 518
---------------------------------------------------------------------------
New York City Housing Dev.
VRDN (Currently 3.00%) (FNMA Guaranteed) 1,000 1,000
--------------------------------------------------------------------
Brittany Dev., VRDN (Currently 3.25%) * 5,000 5,000
-----------------------------------------------------------------------
Multifamily Rental Housing, Columbus Green
VRDN (Currently 3.00%) (FNMA Guaranteed) 300 300
--------------------------------------------------------------------
Tribeca Tower, VRDN (Currently 3.05%) * 4,000 4,000
---------------------------------------------------------------------------
New York City IDA, American Civil Liberties Fac
VRDN (Currently 3.10%) 917 917
---------------------------------------------------------------------------
New York City Municipal Water Fin. Auth
VRDN (Currently 2.70%) (FGIC Insured) 200 200
--------------------------------------------------------------------
Water and Sewer
VRDN (Currently 3.10%) (FGIC Insured) 3,900 3,900
---------------------------------------------------------------------------
New York City Transitional Fin. Auth
VRDN (Currently 2.70%) 600 600
--------------------------------------------------------------------
VRDN (Currently 3.15%) 3,100 3,100
--------------------------------------------------------------------
Future Tax
VRDN (Currently 3.25%) 1,000 1,000
--------------------------------------------------------------------
4.00%, 11/15/99 300 300
---------------------------------------------------------------------------
New York City Trust for Cultural Resources
American Museum of National History
VRDN (Currently 3.10%) (MBIA Insured) 1,300 1,300
--------------------------------------------------------------------
VRDN (Currently 3.70%) (AMBAC Insured) 4,000 4,000
---------------------------------------------------------------------------
13
<PAGE>
T. ROWE PRICE NEW YORK TAX-FREE MONEY FUND
- --------------------------------------------------------------------------------
Par Value
- --------------------------------------------------------------------------------
In thousands
New York State, GO, TECP, 3.00%, 12/1/99 $2,000 $2,000
----------------------------------------------------------------------------
New York State Energy Research and Dev. Auth
VRDN (Currently 3.15%) 5,000 5,000
---------------------------------------------------------------------
Orange and Rockland Utilities
VRDN (Currently 3.10%) (FGIC Insured) 3,600 3,600
----------------------------------------------------------------------------
New York State Environmental Fac., PCR
State Water Revolving Fund
GO, 5.70%, 9/15/99 200 200
---------------------------------------------------------------------
5.60%, 11/15/99 200 201
---------------------------------------------------------------------
6.70%, 6/15/00 100 103
----------------------------------------------------------------------------
New York State Housing Fin. Agency
East 94th Street Housing
VRDN (Currently 3.25%) * 2,900 2,900
---------------------------------------------------------------------
6.00%, 11/1/99 (Escrowed to Maturity) 30 30
---------------------------------------------------------------------
New York State Local Gov't. Assistance
VRDN (Currently 3.05%) 2,500 2,500
---------------------------------------------------------------------
VRDN (Currently 3.10%) 2,200 2,200
----------------------------------------------------------------------------
New York State Medical Care Fac.,
Mental Health Services
7.45%, 8/15/10 (Prerefunded 2/15/00+) 220 229
---------------------------------------------------------------------
7.75%, 2/15/20 (Prerefunded 2/15/00+) 660 686
---------------------------------------------------------------------
7.75%, 2/15/29 (MBIA Insured)
(Prerefunded 2/15/00+) 1,000 1,041
---------------------------------------------------------------------
8.00%, 5/1/00 (Escrowed to Maturity) 100 103
----------------------------------------------------------------------------
New York State Power Auth
VRDN (Currently 2.90%) 6,000 6,000
----------------------------------------------------------------------------
New York State Urban Dev.
7.30%, 4/1/00 (Escrowed to Maturity) 50 51
----------------------------------------------------------------------------
Port Auth. of New York and New Jersey
VRDN (Currently 2.75%) * 100 100
---------------------------------------------------------------------
VRDN (Currently 2.90%) 200 200
---------------------------------------------------------------------
Versatile Structures, VRDN (Currently 2.60%) 1,000 1,000
----------------------------------------------------------------------------
Roslyn Union Free School Dist., GO, TAN, 4.00%, 6/29/00 1,000 1,004
----------------------------------------------------------------------------
Smithtown Central School Dist., GO, TAN, 3.80%, 6/26/00 2,100 2,106
----------------------------------------------------------------------------
Syracuse IDA, Syracuse Univ., VRDN (Currently 2.95%) 4,200 4,200
----------------------------------------------------------------------------
14
<PAGE>
T. ROWE PRICE NEW YORK TAX-FREE BOND FUND
- --------------------------------------------------------------------------------
Par Value
- ----------------------------------------------------------------------------
In thousands
Westchester County, GO
7.00%, 12/1/99 $ 500 $ 505
--------------------------------------------------------------------
TAN, 2.83%, 12/30/99 2,000 2,000
---------------------------------------------------------------------------
Total New York (Cost $105,653) 105,653
----------
ILLINOIS 1.1%
Illinois Health Fac. Auth., Resurrection Health Care
VRDN (Currently 3.05%), (FGIC Insured) 1,200 1,200
---------------------------------------------------------------------------
Total Illinois (Cost $1,200) 1,200
----------
VIRGINIA 1.6%
Roanoke IDA, Roanoke Memorial Hosp
Carilion Health System VRDN (Currently 3.00%) 1,700 1,700
---------------------------------------------------------------------------
Total Virginia (Cost $1,700) 1,700
----------
15
<PAGE>
T. ROWE PRICE NEW YORK TAX-FREE MONEY FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
- -----------------------------------------------------------------------------------
In thousands
<S> <C>
Total Investments in Securities
101.4% of Net Assets (Cost $108,553) $ 108,553
Other Assets Less Liabilities (1,467)
------------
NET ASSETS $ 107,086
------------
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 107,088,493 no par value shares of
beneficial interest outstanding; unlimited number of shares authorized 107,085
------------
NET ASSETS $ 107,086
------------
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
GO General Obligation
IDA Industrial Development Authority
MBIA Municipal Bond Investors Assurance Corp.
PCR Pollution Control Revenue
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.
16
<PAGE>
T. ROWE PRICE NEW YORK TAX-FREE BOND FUND
- --------------------------------------------------------------------------------
Unaudited August 31, 1999
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS Par Value
- ---------------------------------------------------------------------------------------------------------------
In thousands
<S> <C> <C>
NEW YORK 94.5%
Albany County Airport Auth.
5.50%, 12/15/19 (FSA Insured) * $ 2,000 $ 1,945
---------------------------------------------------------------------------------------------------------
Allegany County IDA, GO
Hougton College Civic Fac
5.00%, 1/15/10 495 467
--------------------------------------------------------------------------------------------------
5.00%, 1/15/11 520 486
--------------------------------------------------------------------------------------------------
5.25%, 1/15/18 400 371
---------------------------------------------------------------------------------------------------------
Battery Park City Auth., 5.50%, 11/1/29 (AMBAC Insured) 2,320 2,260
---------------------------------------------------------------------------------------------------------
Buffalo, GO, General Improvement
5.125%, 2/1/14 (AMBAC Insured) 1,500 1,460
---------------------------------------------------------------------------------------------------------
Dormitory Auth. of the State of New York
City Univ., 5.75%, 7/1/11 (AMBAC Insured) 2,000 2,102
-----------------------------------------------------------------------------------------------------
Columbia Univ., 5.00%, 7/1/18 1,000 941
-----------------------------------------------------------------------------------------------------
Maimonides Medical Center
5.75%, 8/1/35 (MBIA Insured) 1,500 1,475
--------------------------------------------------------------------------------------------------
Memorial Sloan Kettering Cancer Center
VRDN (Currently 2.95%) 200 200
--------------------------------------------------------------------------------------------------
Mental Health Services Fac., 5.75%, 8/15/22 2,500 2,475
-----------------------------------------------------------------------------------------------------
New York Hosp. Medical Center
5.55%, 8/15/29 (AMBAC Insured) 2,000 1,954
--------------------------------------------------------------------------------------------------
New York Medical College
5.25%, 7/1/12 (MBIA Insured) 2,110 2,090
--------------------------------------------------------------------------------------------------
North Shore Health System
5.50%, 11/1/13 (MBIA Insured) 3,010 3,051
--------------------------------------------------------------------------------------------------
5.50%, 11/1/14 (MBIA Insured) 1,500 1,517
--------------------------------------------------------------------------------------------------
Nyack Hosp., 6.00%, 7/1/06 2,000 2,040
-----------------------------------------------------------------------------------------------------
Presbyterian Hosp., 4.75%, 8/1/27 (FHA Guaranteed) 4,750 4,058
-----------------------------------------------------------------------------------------------------
Rockefeller Univ.
6.75%, 7/1/11 (Prerefunded 7/1/01+) 1,365 1,454
--------------------------------------------------------------------------------------------------
Siena College, 5.75%, 7/1/26 (MBIA Insured) 2,000 2,004
-----------------------------------------------------------------------------------------------------
State Univ. Ed. Fac., 7.50%, 5/15/11 2,300 2,663
-----------------------------------------------------------------------------------------------------
Westchester County Court Fac.
5.25%, 8/1/14 2,500 2,467
--------------------------------------------------------------------------------------------------
5.25%, 8/1/16 4,250 4,138
---------------------------------------------------------------------------------------------------------
Essex County IDA, PCR, Int'l. Paper, 5.70%, 7/1/16 * 1,850 1,840
---------------------------------------------------------------------------------------------------------
</TABLE>
17
<PAGE>
T. ROWE PRICE NEW YORK TAX-FREE BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
- ------------------------------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Huntington Housing Auth.
Gurwin Jewish Senior Residences
6.00%, 5/1/29 $ 1,000 $ 950
------------------------------------------------------------------------------------------------
Long Island Power Auth., 5.25%, 12/1/26 5,000 4,612
------------------------------------------------------------------------------------------------
Metropolitan Transportation Auth.
4.75%, 7/1/26 (FGIC Insured) 3,000 2,578
-----------------------------------------------------------------------------------------
5.25%, 4/1/14 (FGIC Insured) 4,540 4,467
-----------------------------------------------------------------------------------------
Commuter Fac.
5.00%, 7/1/11 (AMBAC Insured) 2,000 1,965
-----------------------------------------------------------------------------------------
5.625%, 7/1/27 (MBIA Insured) 2,000 1,984
-----------------------------------------------------------------------------------------
Service Contract, 5.50%, 7/1/13 1,510 1,494
--------------------------------------------------------------------------------------------
Transportation Fac.
5.875%, 7/1/27 (MBIA Insured) 2,300 2,333
------------------------------------------------------------------------------------------------
Mount Sinai Union Free School Dist., GO
6.20%, 2/15/17 (AMBAC Insured) 1,025 1,112
-----------------------------------------------------------------------------------------
6.20%, 2/15/18 (AMBAC Insured) 515 559
------------------------------------------------------------------------------------------------
Nassau County, GO
6.50%, 11/1/13 (FGIC Insured)
(Prerefunded 11/1/04+) 1,500 1,677
------------------------------------------------------------------------------------------------
Nassau County IDA
Hofstra Univ.
4.75%, 7/1/28 (MBIA Insured) 2,500 2,137
-----------------------------------------------------------------------------------------
6.90%, 1/1/14 350 393
-----------------------------------------------------------------------------------------
6.90%, 1/1/15 375 421
------------------------------------------------------------------------------------------------
New Rochelle, GO
6.25%, 3/15/17 (MBIA Insured) 375 389
-----------------------------------------------------------------------------------------
6.25%, 3/15/18 (MBIA Insured) 400 414
-----------------------------------------------------------------------------------------
6.25%, 3/15/19 (MBIA Insured) 425 440
------------------------------------------------------------------------------------------------
New York City, GO
5.25%, 8/1/15 2,500 2,396
-----------------------------------------------------------------------------------------
5.25%, 8/1/21 2,500 2,316
-----------------------------------------------------------------------------------------
5.75%, 10/15/13 1,100 1,118
-----------------------------------------------------------------------------------------
5.875%, 3/15/12 2,345 2,412
-----------------------------------------------------------------------------------------
6.00%, 8/1/12 1,000 1,033
-----------------------------------------------------------------------------------------
6.25%, 8/1/09 1,750 1,878
-----------------------------------------------------------------------------------------
7.625%, 2/1/14 (Prerefunded 2/1/02+) 500 545
-----------------------------------------------------------------------------------------
7.75%, 8/15/15 35 37
-----------------------------------------------------------------------------------------
7.75%, 8/15/15 (Prerefunded 8/15/01+) 55 60
------------------------------------------------------------------------------------------------
</TABLE>
18
<PAGE>
T. ROWE PRICE NEW YORK TAX-FREE BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
- --------------------------------------------------------------------------------------------------
In thousands
<S> <C> <C>
New York City Health and Hosp.
Health System Bonds
5.25%, 2/15/17 (AMBAC Insured) $1,500 $1,393
---------------------------------------------------------------------------------------------
New York City Housing Dev., Brittany Dev.
VRDN (Currently 3.25%) * 1,000 1,000
---------------------------------------------------------------------------------------------
New York City IDA
American Airlines, 5.40%, 7/1/20 * 1,500 1,382
-----------------------------------------------------------------------------------------
British Airways, 5.25%, 12/1/32 * 3,500 3,067
-----------------------------------------------------------------------------------------
Brooklyn Navy Yard Cogeneration
5.65%, 10/1/28 * 2,500 2,331
--------------------------------------------------------------------------------------
Horace Mann School
4.90%, 7/1/13 (MBIA Insured) 1,320 1,230
--------------------------------------------------------------------------------------
Nightingale Bamford School, 5.85%, 1/15/20 1,410 1,419
-----------------------------------------------------------------------------------------
Terminal One Group Assoc., 6.00%, 1/1/19 * 2,500 2,531
-----------------------------------------------------------------------------------------
USTA National Tennis Center
6.375%, 11/15/14 (FSA Insured) 1,000 1,075
---------------------------------------------------------------------------------------------
New York City Municipal Water Fin. Auth.
Water and Sewer
VRDN (Currently 2.70%) (FGIC Insured) 1,000 1,000
--------------------------------------------------------------------------------------
5.00%, 6/15/17 (FGIC Insured) 2,000 1,853
--------------------------------------------------------------------------------------
5.25%, 6/15/29 (FGIC Insured) 3,000 2,799
--------------------------------------------------------------------------------------
5.875%, 6/15/26 5,000 5,023
---------------------------------------------------------------------------------------------
New York City Transitional Fin. Auth.
VRDN (Currently 2.70%) 4,000 4,000
--------------------------------------------------------------------------------------
Future Tax
VRDN (Currently 3.25%) 1,300 1,300
--------------------------------------------------------------------------------------
5.125%, 8/15/21 5,000 4,619
---------------------------------------------------------------------------------------------
New York State, GO
7.125%, 11/15/16 (Prerefunded 11/15/00+) 500 529
---------------------------------------------------------------------------------------------
New York State Energy Research and Dev.
Consolidated Edison
VRDN (Currently 3.20%) * 2,000 2,000
--------------------------------------------------------------------------------------
Lilco Project, 5.15%, 3/1/16 (MBIA Insured) 2,190 2,077
---------------------------------------------------------------------------------------------
New York State Environmental Fac., PCR
New York City Municipal Water, 7.50%, 6/15/12 500 523
-----------------------------------------------------------------------------------------
</TABLE>
19
<PAGE>
T. ROWE PRICE NEW YORK TAX-FREE BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
- --------------------------------------------------------------------------------------------------------
In thousands
<S> <C> <C>
New York State Environmental Fac., PCR
State Water Revolving Fund
5.75%, 6/15/12 $ 1,000 $ 1,044
--------------------------------------------------------------------------------------------
6.90%, 5/15/15 480 533
--------------------------------------------------------------------------------------------
6.90%, 11/15/15 750 832
---------------------------------------------------------------------------------------------------
New York State Housing Fin. Agency
Service Contract Obligations
7.375%, 9/15/21 (Prerefunded 3/15/02+) 150 164
--------------------------------------------------------------------------------------------
State Univ. Construction
8.00%, 5/1/11 (Escrowed to Maturity) 1,000 1,230
---------------------------------------------------------------------------------------------------
New York State Local Gov't. Assistance
5.00%, 4/1/21 2,540 2,321
--------------------------------------------------------------------------------------------
5.00%, 4/1/23 3,000 2,697
--------------------------------------------------------------------------------------------
6.00%, 4/1/14 2,000 2,122
---------------------------------------------------------------------------------------------------
New York State Medical Care Fac.
Hospital and Nursing
6.125%, 2/15/14 (Prerefunded 2/15/04+) 140 150
--------------------------------------------------------------------------------------------
Mental Health Services
6.375%, 8/15/10 (FGIC Insured) 5 5
--------------------------------------------------------------------------------------------
6.375%, 8/15/10 (FGIC Insured)
(Prerefunded 2/15/02+) 445 475
--------------------------------------------------------------------------------------------
New York Hosp.
6.50%, 8/15/29 (AMBAC Insured)
(Prerefunded 2/15/05+) 2,000 2,214
---------------------------------------------------------------------------------------------------
New York State Mortgage Agency
Homeowner Mortgage
5.40%, 4/1/29 * 1,500 1,382
--------------------------------------------------------------------------------------------
6.40%, 4/1/27 * 980 1,022
--------------------------------------------------------------------------------------------
7.50%, 4/1/26 * 3,245 3,455
--------------------------------------------------------------------------------------------
7.75%, 4/1/16 500 515
---------------------------------------------------------------------------------------------------
New York State Thruway Auth.
Highway and Bridge
5.25%, 4/1/12 (FGIC Insured) 10,000 9,954
---------------------------------------------------------------------------------------------------
New York State Urban Dev.
Correctional Capital Fac.
5.00%, 1/1/13 2,500 2,355
--------------------------------------------------------------------------------------------
7.00%, 1/1/21 (Prerefunded 1/1/02+) 500 540
--------------------------------------------------------------------------------------------
Sr. Lien, 5.375%, 7/1/22 5,500 5,226
---------------------------------------------------------------------------------------------------
</TABLE>
20
<PAGE>
T. ROWE PRICE NEW YORK TAX-FREE BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
- -----------------------------------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Niagara County, GO
Environmental Infrastructure
5.25%, 8/15/14 (MBIA Insured) $ 435 $ 427
----------------------------------------------------------------------------------------------
5.25%, 8/15/15 (MBIA Insured) 335 327
-----------------------------------------------------------------------------------------------------
Niagara Frontier Transportation Airport Auth.
Greater Buffalo Int'l. Airport
6.125%, 4/1/14 (AMBAC Insured) * 1,385 1,424
-----------------------------------------------------------------------------------------------------
North Hempstead, GO, 4.75%, 1/15/18 (FGIC Insured) 1,750 1,560
-----------------------------------------------------------------------------------------------------
Nyack Union Free School Dist., GO
5.25%, 12/15/12 (FGIC Insured) 1,310 1,307
----------------------------------------------------------------------------------------------
5.25%, 12/15/13 (FGIC Insured) 1,290 1,281
----------------------------------------------------------------------------------------------
5.25%, 12/15/15 (FGIC Insured) 550 541
-----------------------------------------------------------------------------------------------------
Oneida County IDA
St. Elizabeth Medical Center
5.50%, 12/1/10 500 477
----------------------------------------------------------------------------------------------
5.625%, 12/1/09 1,000 963
----------------------------------------------------------------------------------------------
5.75%, 12/1/19 1,600 1,490
-----------------------------------------------------------------------------------------------------
Onondaga County IDA, Community General Hosp.
6.625%, 1/1/18 450 459
-----------------------------------------------------------------------------------------------------
Port Auth. of New York and New Jersey
5.00%, 10/1/22 1,000 920
----------------------------------------------------------------------------------------------
5.50%, 9/1/12 (MBIA Insured) * 900 907
----------------------------------------------------------------------------------------------
5.875%, 7/1/11 * 1,000 1,038
----------------------------------------------------------------------------------------------
6.125%, 6/1/94 1,000 1,068
----------------------------------------------------------------------------------------------
6.50%, 10/1/01 * 600 617
----------------------------------------------------------------------------------------------
6.50%, 7/15/19 (FGIC Insured) * 2,000 2,130
----------------------------------------------------------------------------------------------
6.50%, 11/1/26 * 1,500 1,562
----------------------------------------------------------------------------------------------
6.75%, 4/15/26 (MBIA Insured) * 500 521
----------------------------------------------------------------------------------------------
Special Project, 6.75%, 10/1/11 * 1,000 1,079
-----------------------------------------------------------------------------------------------------
Rensselaer County IDA, Polytechnic Institute, 5.125%, 8/1/29 2,000 1,812
-----------------------------------------------------------------------------------------------------
Syracuse IDA, St. Joseph's Hosp. Health Center
7.50%, 6/1/18 (Prerefunded 6/1/01+) 1,000 1,074
-----------------------------------------------------------------------------------------------------
Triborough Bridge and Tunnel Auth., 5.50%, 1/1/17 1,275 1,282
-----------------------------------------------------------------------------------------------------
Two Broadway Project
New York City Transit Auth., MTA, COP
5.25%, 1/1/29 (AMBAC Insured) 5,000 4,667
-----------------------------------------------------------------------------------------------------
</TABLE>
21
<PAGE>
T. ROWE PRICE NEW YORK TAX-FREE BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
- ---------------------------------------------------------------------------------------------------------
In thousands
<S> <C> <C>
United Nations Dev.
5.30%, 7/1/11 $ 910 $ 898
--------------------------------------------------------------------------------------------------
5.40%, 7/1/14 865 842
- ---------------------------------------------------------------------------------------------------------
Westchester County IDA, Wheelabrator
6.00%, 7/1/08 (AMBAC Insured) * 2,000 2,119
- ---------------------------------------------------------------------------------------------------------
Western Nassau County Water Auth., Water Systems
5.65%, 5/1/26 (AMBAC Insured) 1,000 996
- ---------------------------------------------------------------------------------------------------------
Yonkers IDA, Civic Fac., St. Joseph Hosp.
6.20%, 3/1/20 1,000 943
- ---------------------------------------------------------------------------------------------------------
Total New York (Cost $196,920) 197,296
------------------------------------
PUERTO RICO 4.6%
Puerto Rico Commonwealth Infrastructure Fin. Auth.
Special Tax, 7.75%, 7/1/08 340 344
- ---------------------------------------------------------------------------------------------------------
Puerto Rico Electric Power Auth.
4.75%, 7/1/24 1,965 1,702
--------------------------------------------------------------------------------------------------
5.25%, 7/1/21 3,000 2,818
- ---------------------------------------------------------------------------------------------------------
Puerto Rico Highway and Transportation Auth.
5.00%, 7/1/36 1,000 887
--------------------------------------------------------------------------------------------------
6.375%, 7/1/08 (FSA Insured) 1,000 1,065
- ---------------------------------------------------------------------------------------------------------
Puerto Rico Public Building Auth., GO, Gov't. Fac.
5.00%, 7/1/27 (AMBAC Insured) 3,000 2,748
- ---------------------------------------------------------------------------------------------------------
Total Puerto Rico (Cost $9,476) 9,564
------------------------------------
</TABLE>
22
<PAGE>
T. ROWE PRICE NEW YORK TAX-FREE BOND FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
- ---------------------------------------------------------------------------------------
In thousands
<S> <C>
Total Investments in Securities
99.1% of Net Assets (Cost $206,396) $ 206,860
Other Assets Less Liabilities 1,953
-----------------
NET ASSETS $ 208,813
-----------------
Net Assets Consist of:
Accumulated net investment income - net of distributions $ 9
Accumulated net realized gain/loss - net of distributions (1,888)
Net unrealized gain (loss) 464
Paid-in-capital applicable to 19,830,075 no par shares of beneficial
interest outstanding; unlimited number of shares authorized 210,228
-----------------
NET ASSETS $ 208,813
-----------------
NET ASSET VALUE PER SHARE $ 10.53
-----------------
</TABLE>
* Interest subject to alternative minimum tax
+ Used in determining portfolio maturity
AMBAC AMBAC Indemnity Corp.
COP Certificates of Participation
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.
23
<PAGE>
T. ROWE PRICE NEW YORK TAX-FREE BOND FUND
- --------------------------------------------------------------------------------
Unaudited
<TABLE>
<CAPTION>
- -----------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------------------------
In thousands Money Fund Bond Fund
6 Months 6 Months
Ended Ended
8/31/99 8/31/99
<S> <C> <C>
Investment Income
Interest income $ 1,685 $ 5,821
--------------------------------------
Expenses
Investment management 189 459
Custody and accounting 47 61
Shareholder servicing 43 82
Legal and audit 6 7
Prospectus and shareholder reports 5 12
Registration 3 3
Trustees 3 3
Miscellaneous 2 3
--------------------------------------
Total expenses 298 630
Expenses paid indirectly (3) (1)
--------------------------------------
Net expenses 295 629
--------------------------------------
Net investment income 1,390 5,192
--------------------------------------
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities - (1,777)
Futures - 77
--------------------------------------
Net realized gain (loss) - (1,700)
Change in net unrealized gain or loss on securities - (11,947)
--------------------------------------
Net realized and unrealized gain (loss) - (13,647)
--------------------------------------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 1,390 $ (8,455)
--------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
24
<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
8/31/99 2/28/99 8/31/99 2/28/99
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
Operations
Net investment income $ 1,390 $ 2,831 $ 5,192 $ 9,258
Net realized gain (loss) - - (1,700) 1,883
Change in net unrealized
gain or loss - - (11,947) 245
----------------------------------------------------------------------------
Increase (decrease) in
net assets from operations 1,390 2,831 (8,455) 11,386
----------------------------------------------------------------------------
Distributions to shareholders
Net investment income (1,390) (2,831) (5,192) (9,258)
Net realized gain - - (197) (2,765)
----------------------------------------------------------------------------
Decrease in net assets from
distributions (1,390) (2,831) (5,389) (12,023)
----------------------------------------------------------------------------
Capital share transactions*
Shares sold 37,379 87,072 34,182 69,913
Distributions reinvested 1,348 2,735 4,282 9,548
Shares redeemed (37,760) (79,021) (31,817) (40,207)
----------------------------------------------------------------------------
Increase (decrease) in
net assets from capital
share transactions 967 10,786 6,647 39,254
----------------------------------------------------------------------------
Net Assets
Increase (decrease)
during period 967 10,786 (7,197) 38,617
Beginning of period 106,119 95,333 216,010 177,393
----------------------------------------------------------------------------
End of period $ 107,086 $ 106,119 $ 208,813 $ 216,010
----------------------------------------------------------------------------
* Share information
Shares sold 37,379 87,072 3,107 6,222
Distributions reinvested 1,348 2,735 393 850
Shares redeemed (37,760) (79,021) (2,913) (3,582)
----------------------------------------------------------------------------
Increase (decrease)
in shares outstanding 967 10,786 587 3,490
</TABLE>
The accompanying notes are an integral part of these financial statements.
25
<PAGE>
T. ROWE PRICE NEW YORK TAX-FREE FUNDS
- --------------------------------------------------------------------------------
Unaudited August 31, 1999
- -----------------------------
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. Expenses paid indirectly reflect credits earned on daily
uninvested cash balances at the custodian, which are used to reduce each fund's
custody charges.
26
<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 $82,490,000 and $81,027,000, respectively, for
the six months ended August 31, 1999.
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. As of February 28, 1999, the Money Fund had 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, 1999, the costs of investments for the Money and Bond Funds for
federal income tax purposes was substantially the same as for financial
reporting and totaled $108,553,000 and $206,396,000, respectively. For the Money
Fund, amortized cost is equivalent to value; and for the Bond Fund, net
unrealized gain aggregated $464,000 at period-end, of which $4,878,000 related
to appreciated investments and $4,414,000 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 $34,000 and $75,000 were payable at August 31, 1999 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, 1999, 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, 2001, which would cause
27
<PAGE>
T. ROWE PRICE NEW YORK TAX-FREE FUNDS
- --------------------------------------------------------------------------------
the Money Fund's ratio of total expenses to average net assets to exceed 0.55%.
Pursuant to this agreement, $39,000 of management fees were not accrued by the
Money Fund for the six months ended August 31, 1999. Additionally, $177,000 of
unaccrued fees and expenses related to a previous expense limitation are subject
to reimbursement through February 28, 2001. 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 total 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 $69,000 and
$102,000, respectively, for the six months ended August 31, 1999, of which
$13,000 and $20,000, respectively, were payable at period-end.
28
<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
BROKERAGE SERVICES*
Individual Investments Stocks, bonds, options, precious metals, and other
securities at a savings over full-service 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.
* T. Rowe Price Brokerage is a division of T. Rowe Price Investment Services,
Inc., Member NASD/SIPC.
** Based on a January 1999 survey for representative-assisted stock trades.
Services vary by firm, and commissions may vary depending on size of order.
29
<PAGE>
For fund and account information or to conduct transactions, 24 hours, 7 days a
week
By touch-tone telephone
Tele*Access 1-800-638-2587
By Account Access on the Internet
www.troweprice.com/access
For assistance with your existing fund account, call:
Shareholder Service Center 1-800-225-5132
To open a brokerage account or obtain information, call:
1-800-638-5660
Internet address:
www.troweprice.com
Plan Account Lines for retirement plan participants:
The appropriate 800 number appears on your retirement account statement.
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 appropriate to the fund or funds
covered in this report.
Walk-In Investor Centers:
For directions, call 1-800-225-5132 or visit our Web site
Baltimore Area
Downtown
101 East Lombard Street
Owings Mills
Three Financial Center
4515 Painters Mill Road
Boston Area
386 Washington Street
Wellesley
Colorado Springs
4410 ArrowsWest Drive
Los Angeles Area
Warner Center
21800 Oxnard Street, Suite 270
Woodland Hills
Tampa
4200 West Cypress Street
10th Floor
Washington, D.C.
900 17th Street N.W.
Farragut Square
[LOGO OF T. ROWE PRICE APPEARS HERE]
T. Rowe Price Investment Services, Inc., Distributor. C04-051 8/31/99
