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T. ROWE PRICE
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State Tax-Free Income Trust
Virginia Short-Term Tax-Free Bond Fund
Supplement to prospectus dated July 1, 2000
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Important Information About the Virginia Short-Term Tax-Free Bond Fund
We want to let you know that on July 18, 2000, the Board of Trustees of the T.
Rowe Price State Tax-Free Income Trust recommended a plan of reorganization for
the Virginia Short-Term Tax-Free Bond Fund. Under the reorganization, the
assets of the fund would be merged into the T. Rowe Price Tax-Free
Short-Intermediate Fund. The Virginia Short-Term Tax-Free Bond Fund was closed
to new investors on July 18.
If you hold shares in the fund at the close of business August 25, 2000, the
"record" date, you will have the opportunity to vote on the reorganization
plan. Proxy materials and voting instructions will be mailed in early September
to shareholders of record, and a special shareholder meeting will be held on
October 25, 2000. If the proposal is approved, the transfer of assets will take
place soon thereafter, and you will then own shares with the same total value
in the Tax-Free Short-Intermediate Fund. The merger transaction is designed so
as not to create tax liabilities for shareholders in the Virginia Short-Term
Tax-Free Bond Fund.
Please note that the Virginia Tax-Free Bond Fund is not involved in the
reorganization plan.
Detailed information about the proposed reorganization is provided only by the
proxy. If you would like information about the Tax-Free Short-Intermediate Fund
or any other T. Rowe Price fund, please give us a call at 1-800-225-5132 or
visit our Web site at www.troweprice.com.
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The date of this supplement is July 19, 2000.
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C14-041 7/19/00
