<PAGE>
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T. Rowe Price
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Semiannual Report
Florida Intermediate Tax-Free Fund
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August 31, 1999
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REPORT HIGHLIGHTS
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FLORIDA INTERMEDIATE TAX-FREE FUND
- ----------------------------------
* Surprising economic strength and rising interest rates hurt bond market
performance over the past six and 12 months.
* Returns were disappointing in absolute terms but ahead of our Lipper peer
group average.
* Florida remained one of the fastest-growing states in the nation, and tax
collections were better than expected.
* The interest rate outlook is uncertain for the months ahead, but tax-free
bond yields remain attractive compared with taxable alternatives.
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UPDATES AVAILABLE
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For updates on each fund following the end of every calendar
quarter, please see our Web site at WWW.TROWEPRICE.COM.
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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 a reality - 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 Florida Intermediate Tax-Free Fund was not immune to this trend, but
held up somewhat better than its Lipper peer group average.
<PAGE>
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MARKET ENVIRONMENT
================================================================================
The U. S. economy continued its robust growth, driven by exuberant consumer
spending. Although broad inflation measures did not rise appreciably, tight
labor markets, low unemployment, and a rebound in energy prices raised fears
that inflationary pressures were building. The fixed income markets reacted
nervously to these developments as well as to the increasing 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 the
first hints of higher 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%. With these moves the Fed effectively rescinded two
of its three rate reductions of the previous fall, when it had moved swiftly to
ease a global financial crisis. Indeed, the beginnings of recovery in many of
the Asian and Latin American nations most affected by that crisis helped push
the dollar lower and interest rates higher.
Interest rates rose across all maturities, with the bellwether 30-year
Treasury bond rising from the 5% area at the beginning of the year to over 6%
for the first time since mid-1998. Short-term yields rose a bit more than
intermediates and long-term bonds over the period, which created 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 from the
reinvestment of proceeds from maturing bonds and other cash flows. Thus, for
much of the period under review, overall returns on municipals compared
favorably with their taxable counterparts, although both were modest at best.
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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.
<PAGE>
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 1998's 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 y ields 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 TreasuriesNincluding
corporate, asset-backed and mortgage-backed
bondsNhas 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.
- --------------------------------------------------------------------------------
[Municipal Treasury Yield ratio chart showing 1981-8/99 Tresury ratio and
Treasury Average. Source: Municipal Market Data.]
================================================================================
<PAGE>
In August, however, this trend reversed. A huge supply of corporate bonds
came to market, pushing up yields on these taxable bonds and attracting
"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 decrease in liquidity as dealers hesitated to
add to their bond inventories created a very weak market tone. After
outperforming taxable bonds through July, municipals lost ground in August, and
ended the six-month period more in line with taxables.
[Municipal Bond and Note Yields chart shown here. Line graph showing
30-year AAA GO, 5-year AAA GO, and 1-year MIG1 note from 8/98 through 8/99
Source: T. Rowe Price Associates.]
Florida remained one of the fastest-growing states in the nation, despite a
recent slowing in the rate of growth of new residents. The state's population is
projected to reach 15.5 million in April, 2.6 million over the 1990 census
count. This means that during the 1990s, Florida's population grew about 20%
compared with an estimated 10.5% for the nation as a whole. Florida employment
growth, at 3.5%, also continued to outpace that of the U.S. and was second only
to Nevada. The state's unemployment rate dropped from 4.3% at the beginning of
the year to the current 3.8% level. The growing trade and services industries
continued to drive the economy along with the traditional engines of tourism and
agriculture. Tourist arrivals in 1999 are projected at about 50 million, a 2%
increase over last year.
Although the state is projecting a slowdown in general revenue growth, this
year's revenues have increased at a faster rate than in 1998. Through July,
general fund collections of about $1.4 billion were well above forecasts and
ahead of last year's pace. Most of the credit goes to sales tax receipts, which
have grown 8% this year. Prudent financial management has enabled Florida to
take advantage of this revenue increase, as evidenced by the healthy current
fund balance. The state maintains general obligation bond ratings of Aa2 from
Moody's Investors Services, AA+ from Standard & Poor's, and AA from Fitch IBCA.
One area of potential concern in the future is the state's debt level,
which has risen steadily and grown more complex with the recent addition of
several debt programs. The state's net tax-supported debt, totaling
approximately $13 billion, is largely payable from specified taxes with general
obligation backup. Florida's 1999 net tax-supported debt per capita of $863 is
above the $505 median for other states. Given Florida's rapidly growing
population, the state will need to manage future debt issuance carefully.
================================================================================
<PAGE>
PERFORMANCE AND STRATEGY REVIEW
================================================================================
PERFORMANCE COMPARISON
- ----------------------
Periods Ended 8/31/99 6 Months 12 Months
- --------------------- -------- ---------
Florida Intermediate Tax-Free Fund -1.70% 0.54%
Lipper Florida Intermediate
Municipal Debt Funds Average -1.85 0.12
================================================================================
Your fund performed well relative to its peer group average in a difficult
environment of rising interest rates and declining bond prices. The fund lost
1.70% over the past six months, as share price decline outweighed coupon income,
compared with a 1.85% loss for the Lipper category. The fund's net asset value
declined $0.43 to $10.43 per share, as shown in the Key Statistics table on page
7. Dividend income remained steady at $0.23 compared with the prior six-month
period, and the fund's annualized yield for the six months rose to 4.36%.
Twelve-month performance was marginally positive, though again ahead of the peer
group average.
Early this year we had modestly shortened duration from 5.7 years to 5.5
years, as we felt that market interest rates were low and last fall's Fed rate
cuts were likely to stimulate economic growth. (Duration is a measure of a bond
fund's sensitivity to interest rates. The greater the number, the greater the
potential price movement as a result of changes in interest rates. For example,
a fund with a duration of six years would fall or rise about 6% in price in
response to a one-percentage-point rise or fall in interest rates.) Over the
past six months, duration has declined to 5.4 years, which we consider neutral
to slightly long. We did not move to a defensive stance because tax-free yields
as a percentage of Treasury yields (which are taxable) were exceptionally high,
and we felt these attractive valuations would prevent municipal yields from
rising too much more.
As yields increased, we swapped lower-coupon bonds that were trading below
our cost for higher-coupon bonds, both to increase shareholder income and to
realize a tax loss that we can use to reduce or eliminate capital gains
distributions. We executed these transactions as efficiently as possible to keep
trading costs to a minimum. This strategy is ongoing, and we seek to purchase
longer-term intermediate bonds that can be core holdings for the fund for years
to come. We have not been able to implement this strategy as quickly as we would
like, since new issuance of Florida municipal bonds declined 26% year-to-date
through August and secondary market offerings were also reduced.
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OUTLOOK
================================================================================
<PAGE>
Interest rates may well move higher in the coming months given the backdrop
of global economic recovery and persistent strength in the U.S. economy. The Fed
is keeping a close eye on the buildup of 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 pre-crisis level. With greater stability
in the global economy, the Fed can now focus on the domestic economy. On the
other hand, the Fed wants to maintain a liquid and orderly market as we approach
the end of the year and the transition to the year 2000, which could serve to
moderate future rate increases. It's also important to recognize that we've had
a healthy rise in rates this year that should begin to slow certain sectors of
the economy. Given these crosscurrents, it is hard to justify increasing the
fund's interest rate risk by extending duration significantly. Instead, we are
focused on the higher yields available in the marketplace and the current appeal
of tax-free municipal bonds relative to taxable securities. The credit outlook
for Florida remains very good.
Respectfully submitted,
/s/
Charles B. Hill
Chairman of the Investment Advisory Committee
September 20, 1999
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T. ROWE PRICE FLORIDA INTERMEDIATE TAX-FREE FUND
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PORTFOLIO HIGHLIGHTS
- --------------------
KEY STATISTICS
- --------------
2/28/99 8/31/99
------- -------
Price Per Share $10.86 $10.43
Dividends Per Share
For 6 months 0.23 0.23
For 12 months 0.46 0.45
Dividend Yield *
For 6 months 4.23% 4.36%
For 12 months 4.29 4.43
30-Day Standardized Yield 3.42 4.20
Weighted Average Maturity (years) 8.1 7.4
Weighted Average Effective Duration (years) 5.5 5.4
Weighted Average Quality ** AA AA
* 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.
** Based on T. Rowe Price research.
================================================================================
<PAGE>
T. ROWE PRICE FLORIDA INTERMEDIATE TAX-FREE FUND
- --------------------------------------------------------------------------------
PORTFOLIO HIGHLIGHTS
- --------------------
SECTOR DIVERSIFICATION
- ----------------------
Percent of Percent of
Net Assets Net Assets
2/28/99 8/31/99
------- -------
Dedicated Tax Revenue 16% 17%
General Obligation - Local 14 15
Water and Sewer Revenue 13 12
Hospital Revenue 11 9
Electric Revenue 8 8
Air and Sea Transportation Revenue 9 7
Solid Waste Revenue 4 6
Ground Transportation Revenue 3 6
Nuclear Revenue 7 4
Prerefunded Bonds 2 4
Lease Revenue 3 4
Life Care/Nursing Home Revenue 2 2
Housing Finance Revenue 2 2
General Obligation - State 4 2
Escrowed to Maturity 2 2
Other Assets Less Liabilities - -
- ----- ---- ----
Total 100% 100%
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T. ROWE PRICE FLORIDA INTERMEDIATE TAX-FREE FUND
- --------------------------------------------------------------------------------
PERFORMANCE COMPARISON
- ----------------------
This chart shows 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.
[SEC chart for Florida shown here]
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.
Since Inception
Periods Ended 8/31/99 1 Year 3 Years 5 Years Inception Date
- --------------------- ------ ------- ------- --------- ---------
Florida Intermediate Tax-Free Fund 0.54% 4.72% 5.18% 5.16% 3/31/93
Investment return and principal value represent past performance and will
vary. Shares may be worth more or less at redemption than at original purchase.
<PAGE>
================================================================================
T. ROWE PRICE FLORIDA INTERMEDIATE TAX-FREE FUND
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Unaudited For a share outstanding throughout each period
FINANCIAL HIGHLIGHTS
- --------------------
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
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
Beginning of period $ 10.86 $ 10.75 $ 10.52 $ 10.61 $ 10.14 $ 10.30
- -----------------------------------------------------------------------------------------------------
Investment activities
Net investment income 0.23 0.46* 0.46* 0.46* 0.47* 0.43*
Net realized and
unrealized gain (loss) (0.41) 0.11 0.23 (0.07) 0.47 (0.14)
- -----------------------------------------------------------------------------------------------------
Total from
investment activities (0.18) 0.57 0.69 0.39 0.94 0.29
- -----------------------------------------------------------------------------------------------------
Distributions
Net investment income (0.23) (0.46) (0.46) (0.46) (0.47) (0.43)
Net realized gain (0.02) - - (0.02) - (0.02)
- -----------------------------------------------------------------------------------------------------
Total distributions (0.25) (0.46) (0.46) (0.48) (0.47) (0.45)
- -----------------------------------------------------------------------------------------------------
NET ASSET VALUE
=====================================================================================================
End of period $ 10.43 $ 10.86 $ 10.75 $ 10.52 $ 10.61 $ 10.14
==Ratios/Supplemental=Data===========================================================================
Total return** (1.70)% 5.37%* 6.71%* 3.81%* 9.41%* 3.01%*
- -----------------------------------------------------------------------------------------------------
Ratio of total expenses to
average net assets 0.60%+ 0.60%* 0.60%* 0.60%* 0.60%* 0.60%*
- -----------------------------------------------------------------------------------------------------
Ratio of net investment
income to average
net assets 4.24%+ 4.23%* 4.35%* 4.39%* 4.47%* 4.38%*
- -----------------------------------------------------------------------------------------------------
Portfolio turnover rate 30.4%+ 26.9% 25.0% 75.8% 98.7% 140.5%
- -----------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $ 92,329 $ 102,620 $ 90,941 $ 78,783 $ 67,260 $ 51,922
- -----------------------------------------------------------------------------------------------------
** 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 2/28/99.
+ Annualized
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
================================================================================
T. ROWE PRICE FLORIDA INTERMEDIATE TAX-FREE FUND
- --------------------------------------------------------------------------------
Unaudited August 31, 1999
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS In thousands
<TABLE>
<S> <C> <C> <C>
Par Value
FLORIDA 92.1%
Brevard County HFA, Holmes Regional Medical Center
5.20%, 10/1/05 (MBIA Insured) $ 2,000 $ 2,065
- --------------------------------------------------------------------------------------------
Broward County Airport, 5.25%, 10/1/10 (MBIA Insured) * 2,000 2,012
- --------------------------------------------------------------------------------------------
Canaveral Port Auth., 5.75%, 6/1/16 (FGIC Insured) * 1,000 1,009
- --------------------------------------------------------------------------------------------
Dade County, GO, Public Improvement
7.40%, 6/1/03 (FSA Insured) 1,100 1,213
- --------------------------------------------------------------------------------------------
Dade County
Aviation
5.40%, 10/1/03 (MBIA Insured) * 1,140 1,182
- --------------------------------------------------------------------------------------------
6.20%, 10/1/24 (MBIA Insured) * 50 52
- --------------------------------------------------------------------------------------------
Resource Recovery Fac.
6.00%, 10/1/06 (AMBAC Insured) * 2,500 2,664
- --------------------------------------------------------------------------------------------
Water and Sewer
5.375%, 10/1/16 (FGIC Insured) 1,500 1,486
- --------------------------------------------------------------------------------------------
Dade County IDA, Florida Power and Light
VRDN (Currently 2.95%) 400 400
- --------------------------------------------------------------------------------------------
Dade County School Dist.
GO
5.50%, 8/1/04 (MBIA Insured) 2,000 2,094
- --------------------------------------------------------------------------------------------
6.00%, 7/15/04 (MBIA Insured) 3,545 3,788
- --------------------------------------------------------------------------------------------
Duval County School Dist., GO
6.125%, 8/1/04 (AMBAC Insured) 2,000 2,120
- --------------------------------------------------------------------------------------------
Florida Board of Ed., GO, 5.125%, 7/1/11 (FGIC Insured) 2,000 1,999
- --------------------------------------------------------------------------------------------
Florida Dept. of Corrections, Okeechobee Correctional
5.80%, 3/1/02 (AMBAC Insured) 1,005 1,042
- --------------------------------------------------------------------------------------------
Florida Dept. of Natural Resources
VRDN (Currently 3.34%) (FGIC Insured) 1,000 1,000
- --------------------------------------------------------------------------------------------
<PAGE>
Florida Dept. of Transportation, Turnpike Auth.
5.25%, 7/1/11 (MBIA Insured) 1,950 1,968
- --------------------------------------------------------------------------------------------
5.50%, 7/1/05 (AMBAC Insured) 1,000 1,050
- --------------------------------------------------------------------------------------------
Florida Division of Bond Fin.
Dept. of Environmental Preservation
5.50%, 7/1/07 (AMBAC Insured) 2,000 2,086
- --------------------------------------------------------------------------------------------
6.00%, 7/1/05 (MBIA Insured) 500 537
- --------------------------------------------------------------------------------------------
6.00%, 7/1/06 (MBIA Insured) 4,350 4,690
- --------------------------------------------------------------------------------------------
Florida Housing Fin. Agency
Multi-Family Housing
5.80%, 2/1/08 $ 1,000 $ 1,054
- --------------------------------------------------------------------------------------------
5.80%, 8/1/08 1,000 1,056
- --------------------------------------------------------------------------------------------
Florida Municipal Power Agency
All - Requirements Power Supply
6.25, 10/1/21 (AMBACInsured)
(Prerefunded 10/1/02+) 1,700 1,829
- --------------------------------------------------------------------------------------------
Gainesville, Utilities, 6.40%, 10/1/05 1,500 1,609
- --------------------------------------------------------------------------------------------
Hillsborough County
Environmentally Sensitive
Lands Acquisition and Protection
6.20%, 7/1/05 (AMBAC Insured)
(Prerefunded 7/1/02+) 1,485 1,590
- --------------------------------------------------------------------------------------------
Improvement Program
6.00%, 8/1/04 (FGIC Insured) 1,895 2,026
- --------------------------------------------------------------------------------------------
Hillsborough County IDA, PCR, Tampa Electric
VRDN (Currently 2.80%) 800 800
- --------------------------------------------------------------------------------------------
Hillsborough County Port Dist., Tampa Port Auth.
6.50%, 6/1/04 (FSA Insured) * 2,000 2,166
- --------------------------------------------------------------------------------------------
Hillsborough County School Dist., GO
7.00%, 8/15/05 (MBIA Insured) 3,700 4,162
- --------------------------------------------------------------------------------------------
Indian Trace Community Dev. Dist.
Water Management
5.50%, 5/1/06 (MBIA Insured) 1,215 1,274
- --------------------------------------------------------------------------------------------
5.50%, 5/1/07 (MBIA Insured) 550 576
- --------------------------------------------------------------------------------------------
Jacksonville, PCR, Florida Power and Light
VRDN (Currently 2.80%) 1,200 1,200
- --------------------------------------------------------------------------------------------
<PAGE>
Jacksonville, Water and Sewer
6.00%, 10/1/04 (MBIA Insured)
(Escrowed to Maturity) 1,845 1,975
- --------------------------------------------------------------------------------------------
Jacksonville HFA, Charity Obligation Group
5.00%, 8/15/11 (MBIA Insured) 750 739
- --------------------------------------------------------------------------------------------
Kissimmee Water and Sewer Systems
5.50%, 10/1/11 (FGIC Insured) 1,500 1,549
- --------------------------------------------------------------------------------------------
Lakeland Electric and Water, 6.80%, 10/1/04 (FSA Insured) 3,755 4,106
- --------------------------------------------------------------------------------------------
Lee County IDA, Bonita Springs Utilities
5.80%, 11/1/11 (MBIA Insured) * $ 1,325 $ 1,369
- --------------------------------------------------------------------------------------------
Lee County School Board, COP, 6.30%, 8/1/01 (FSA Insured) 2,000 2,079
- --------------------------------------------------------------------------------------------
Manatee County, Public Utilities
6.75%, 10/1/05 (MBIA Insured) 2,000 2,230
- --------------------------------------------------------------------------------------------
Orange County, Public Service Tax
5.60%, 10/1/07 (FGIC Insured) 500 529
- --------------------------------------------------------------------------------------------
Orlando and Orange County
Expressway Auth.
6.50%, 7/1/10 (FGIC Insured) 1,000 1,120
- --------------------------------------------------------------------------------------------
6.50%, 7/1/11 (FGIC Insured) 1,000 1,120
- --------------------------------------------------------------------------------------------
Osceola County HFA
Evangelical Lutheran Good Samaritan Society
5.50%, 5/1/03 (AMBAC Insured) 660 685
- --------------------------------------------------------------------------------------------
5.50%, 5/1/04 (AMBAC Insured) 700 730
- --------------------------------------------------------------------------------------------
5.50%, 5/1/05 (AMBAC Insured) 735 769
- --------------------------------------------------------------------------------------------
Palm Beach County, GO, 6.875%, 12/1/03 325 357
- --------------------------------------------------------------------------------------------
Pasco County, Solid Waste Disposal and Resource Recovery
5.75%, 4/1/05 (AMBAC Insured) * 1,130 1,184
- --------------------------------------------------------------------------------------------
Pinellas County Water Auth.
5.50%, 10/1/04 (AMBAC Insured) 2,500 2,624
- --------------------------------------------------------------------------------------------
Reedy Creek Improvement Dist.
GO, 6.375%, 6/1/05 (MBIA Insured) 435 454
- --------------------------------------------------------------------------------------------
6.375%, 6/1/05 (MBIA Insured)
(Prerefunded 6/1/01+) 65 68
- --------------------------------------------------------------------------------------------
<PAGE>
St. Lucie County
Florida Power and Light
VRDN (Currently 3.10%) * 300 300
- --------------------------------------------------------------------------------------------
PCR, VRDN (Currently 2.80%) 200 200
- --------------------------------------------------------------------------------------------
Tampa Heath Systems, Catholic Health East
5.25%, 11/15/11 (MBIA Insured) 3,000 3,006
- --------------------------------------------------------------------------------------------
Tampa Solid Waste Systems
Mckay Bay Refuse to Energy
5.25%, 10/1/12 (AMBACInsured) * 2,000 1,978
- --------------------------------------------------------------------------------------------
Venice, Bon Secours Health Systems
5.40%, 8/15/08 (MBIA Insured) 1,290 1,338
- --------------------------------------------------------------------------------------------
West Orange Healthcare Dist. 5.50%, 2/1/10 750 737
- --------------------------------------------------------------------------------------------
Total Florida (Cost $83,703) 85,045
- --------------------------------------------------------------------------------------------
GUAM==2.3%==================================================================================
Guam Gov't Infrastructure, 5.50%, 11/1/05 (AMBAC Insured) $ 2,000 $ 2,103
- --------------------------------------------------------------------------------------------
Total Guam (Cost $2,114) 2,103
- --------------------------------------------------------------------------------------------
MICHIGAN==3.2%==============================================================================
Michigan State Trunk Line, 5.25%, 11/1/15 3,000 2,942
- --------------------------------------------------------------------------------------------
Total Michigan (Cost $3,000) 2,942
- --------------------------------------------------------------------------------------------
PUERTO=RICO==2.1%===========================================================================
Puerto Rico Electric Power Auth.
5.25%, 7/1/14 (MBIA Insured) 2,000 1,990
- --------------------------------------------------------------------------------------------
<PAGE>
Total Puerto Rico (Cost $2,048) 1,990
99.7% of Net Assets (Cost $90,865) $ 92,080
Other Assets Less Liabilities 249
NET ASSETS $ 92,329
Net Assets Consist of:
Accumulated net realized gain/loss - net of distributions $ (797)
Net unrealized gain (loss) 1,215
Paid-in-capital applicable to 8,854,847
no par value shares of beneficial interest outstanding;
unlimited number of shares authorized 91,911
- --------------------------------------------------------------------------------------
NET ASSETS $ 92,329
NET ASSET VALUE PER SHARE $ 10.43
* Interest subject to alternative minimum tax
+ Used in determining portfolio maturity
AMBAC AMBAC Indemnity Corp.
COP Certificates of Participation
FGIC Financial Guaranty Insurance Company
FSA Financial Security Assurance Corp.
GO General Obligation
HFA Health Facility Authority
IDA Industrial Development Authority
MBIA Municipal Bond Investors Assurance Corp.
PCR Pollution Control Revenue
VRDN Variable Rate Demand Note
</TABLE>
The accompanying notes are an integral part of these financial statements.
================================================================================
T. ROWE PRICE FLORIDA INTERMEDIATE TAX-FREE FUND
- --------------------------------------------------------------------------------
Unaudited
<PAGE>
Statement of Operations
In thousands
6 Months
Ended
8/31/99
==Investment=Income====================================================
Interest income $ 2,397
- -----------------------------------------------------------------------
Expenses
Investment management 187
Custody and accounting 50
Shareholder servicing 36
Prospectus and shareholder reports 11
Legal and audit 6
Trustees 3
Registration 1
Miscellaneous 2
- -----------------------------------------------------------------------
Total expenses 296
Expenses paid indirectly (1)
- -----------------------------------------------------------------------
Net expenses 295
- -----------------------------------------------------------------------
Net investment income 2,102
- -----------------------------------------------------------------------
==Realized=and=Unrealized=Gain=(Loss)==================================
Net realized gain (loss)
Securities (669)
Futures (37)
- -----------------------------------------------------------------------
Net realized gain (loss) (706)
Change in net unrealized gain or loss on securities (3,168)
- -----------------------------------------------------------------------
Net realized and unrealized gain (loss) (3,874)
- -----------------------------------------------------------------------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ (1,772)
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. ROWE PRICE FLORIDA INTERMEDIATE TAX-FREE FUND
- --------------------------------------------------------------------------------
Unaudited
STATEMENT OF CHANGES IN NET ASSETS In thousands
- --------------------------------------------------------------------------------
6 Months Year
Ended Ended
8/31/99 2/28/99
==Increase=(Decrease)=in=Net=Assets
Operations
Net investment income $ 2,102 $ 3,907
Net realized gain (loss) (706) 492
Change in net unrealized gain or loss (3,168) 468
- --------------------------------------------------------------------------------
Increase (decrease) in net assets from operations (1,772) 4,867
- --------------------------------------------------------------------------------
Distributions to shareholders
Net investment income (2,102) (3,907)
Net realized gain (188) -
- --------------------------------------------------------------------------------
Decrease in net assets from distributions (2,290) (3,907)
- --------------------------------------------------------------------------------
Capital share transactions*
Shares sold 10,367 39,525
Distributions reinvested 1,665 2,822
Shares redeemed (18,261) (31,628)
- --------------------------------------------------------------------------------
Increase (decrease) in net assets from capital
share transactions (6,229) 10,719
==Net=Assets====================================================================
Increase (decrease) during period (10,291) 11,679
Beginning of period 102,620 90,941
End of period $ 92,329 $ 102,620
*Share information
Shares sold 978 3,646
Distributions reinvested 157 261
Shares redeemed (1,727) (2,923)
- --------------------------------------------------------------------------------
Increase (decrease) in shares outstanding (592) 984
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. ROWE PRICE FLORIDA INTERMEDIATE TAX-FREE FUND
- --------------------------------------------------------------------------------
Unaudited August 31, 1999
NOTES TO FINANCIAL STATEMENTS
- -----------------------------
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NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
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T. Rowe Price State Tax-Free Income Trust (the trust) is registered under
the Investment Company Act of 1940. The Florida Intermediate Tax-Free Fund (the
fund), a nondiversified, open-end management investment company, is one of the
portfolios established by the trust and commenced operations on March 31, 1993.
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. 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.
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 the
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 the 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 the fund's
custody charges.
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NOTE 2 - INVESTMENT TRANSACTIONS
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Purchases and sales of portfolio securities, other than short-term
securities, aggregated $14,448,000 and $20,531,000, respectively, for the six
months ended August 31, 1999.
<PAGE>
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NOTE 3 - FEDERAL INCOME TAXES
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No provision for federal income taxes is required since the fund intends to
continue to qualify as a regulated investment company and distribute all of its
income.
At August 31, 1999, the cost of investments for federal income tax purposes
was substantially the same as financial reporting and totaled $90,865,000. Net
unrealized gain aggregated $1,215,000 at period-end, of which $1,774,000 related
to appreciated investments and $559,000 to depreciated investments.
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NOTE 4 - RELATED PARTY TRANSACTIONS
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The investment management agreement between the fund and T. Rowe Price
Associates, Inc. (the manager) provides for an annual investment management fee,
of which $30,000 was payable at August 31, 1999. The fee is computed daily and
paid monthly, and consists of an individual fund fee equal to 0.05% 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%. The 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 had
been required to bear any expenses through February 28, 1999, which would cause
the fund's ratio of total expenses to average net assets to exceed 0.60%.
Thereafter, through February 28, 2001, the fund is required to reimburse the
manager for these expenses, provided that average net assets have grown or
expenses have declined sufficiently to allow reimbursement without causing the
fund's ratio of total expenses to average net assets to exceed 0.60%. Pursuant
to this agreement, $4,000 of unaccrued 1998-1999 management fees were repaid
during the six months ended August 31, 1999, and $2,000 remains subject to
reimbursement through February 28, 2001.
In addition, the fund has entered into agreements with the manager and a
wholly owned subsidiary of the manager, pursuant to which the fund receives
certain other services. The manager computes the daily share price and maintains
the financial records of the fund. T. Rowe Price Services, Inc. is the fund's
transfer and dividend disbursing agent and provides shareholder and
administrative services to the fund. The fund incurred expenses pursuant to
these related party agreements totaling approximately $64,000 for the six months
ended August 31, 1999, of which $12,000 was payable at period-end.
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<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
Tax-Efficient Growth
Total Equity Market Index
Value
INTERNATIONAL/GLOBAL
- --------------------
Emerging Markets Stock
European Stock
Global Stock
International Discovery
International Growth & Income
International Stock
Japan
Latin America
New Asia
Spectrum International
BOND FUNDS
- ----------------------------------------
<PAGE>
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 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 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
<PAGE>
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
* Closed to new investors.
** Formerly named Florida Insured Intermediate Tax-Free.
*** Formerly named Tax-Free Insured Intermediate Bond.
+ Investments in the funds are not insured or guaranteed by the FDIC or any
other government agency. Although the funds seek to preserve the value of
your investment at $1.00 per share, it is possible to lose money by
investing in the funds.
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.
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<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 OBTAININFORMATION, 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
<PAGE>
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
T. Rowe Price Investment Services, Inc., Distributor. F91-051 8/31/99
