PREMIER STATE MUNICIPAL BOND FUND, N-30D, 1997-01-14

PREMIER STATE MUNICIPAL BOND FUND
N-30D, 1997-01-14

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Premier State Municipal Bond Fund, Connecticut Series
- ------------------------------------------------------
Letter to Shareholders

Dear Shareholder:

We are pleased to provide you with this report on the Premier State
Municipal Bond Fund--Connecticut Series. For its semi-annual reporting period
ended October 31, 1996, your Series produced a total return of 4.80% for Class
A shares, 4.53% for Class B shares and 4.41% for Class C shares.* Income
dividends exempt from Federal and Connecticut State personal income taxes of
approximately $.324 for Class A shares, $.292 for Class B shares and $.279 for
Class C shares were paid.** This amounts to an annualized tax-free distribution
rate per share of 5.05%, 4.77% and 4.56% for Class A, Class B and Class C
shares, respectively.***

THE ECONOMY

The fear of another round of monetary tightening by the Federal Reserve
Board ("the Fed") to ward off a resurgence in inflation has so far proved
unwarranted. Indeed, despite solid economic growth resulting in the creation of
new jobs and an overall tightening in the labor market, inflation has remained
subdued. Both the Consumer and Producer Price Indexes remained at annual rates
in the 3% range. This is the fifth consecutive year of inflation under 3%, the
longest period since the 1960s. Despite the duration of the economic recovery,
most economic reports underscore the tepid nature of the present inflationary
environment.

The increase in long-term interest rates early this year may have
contributed to the recently reported slowdown in the rate of economic growth.
During the third quarter, the growth rate of Gross Domestic Product cooled to
2.2%, less than half the second quarter's strong 4.7% pace. Consumers--the
initiators of two thirds of all economic activity--remained cautious
throughout the year. In the third quarter, the pace of consumer spending was at
its slowest in five years. Consumer borrowing has also declined from year-ago
levels. Not surprisingly, retail sales growth has also been modest this year.
Consumers may have been restrained by wages not rising as rapidly as had been
previously suspected, given the strength in the labor market. The Employment
Cost Index, considered to be an important gauge of wage inflation by Federal
Reserve Board Chairman Alan Greenspan, rose just .6% in the third quarter, the
lowest reading in over a year. This brought the growth in wages to 2.8% over
the past twelve months, slightly less than the rate of inflation as measured by
the Consumer Price Index.

The booming housing market also seems to have cooled with both new housing
starts and existing home sales slackening since midyear. Industrial production
has slowed somewhat from its more rapid pace earlier in the year. Given the
level of capacity utilization, there appears to be no sign of production
bottlenecks that could push prices higher. Anecdotal evidence still supports
the assertion that corporations are reluctant to raise prices. The report that
the 1996 Federal budget deficit had shrunk to $107.3 billion--its lowest level
in two decades--provided another favorable sign for inflation. The final
reading of the 1996 deficit marks the fourth straight decline from fiscal
1992's record $290.4 billion.

Despite the relatively benign current environment for inflation, we are
alert for early signs of its potential resurgence. While wage increases so far
have remained modest, we believe workers should eventually expect compensation
that at least matches their cost of living. Furthermore, we are mindful that
price increases in energy and food may not continue to be as restrained as they
were over the past four years.

MARKET ENVIRONMENT

THE PORTFOLIO

The portfolio holds many high coupon bonds that help the Series derive
most of its total return from income. During this last six-month period we have
chosen to replace some existing holdings with either those that have better
call protection and coincidental upside price potential, or those with higher
liquidity features. On a security by security basis we have used these
selection criteria in analyzing the risk/return function of each bond purchased
and sold. Our criteria stress accomplishing these goals without compromising
income or losing sight of the portfolio in its totality. Currently, the
duration (an industry measurement of price responsiveness to changes in
interest rates and therefore price risk of the Fund) is slightly longer, or
more aggressive, than it was at the time of our last letter, when it was
slightly defensive overall compared to other funds in our comparison group. As
of the end of the reporting period, the tax-exempt market was attractively
valued compared to taxable fixed income equivalents. We believe the current
portfolio structure should serve the portfolio well during a return to more
conventional yield relationships or through a repeated period of stabilization
that we have experienced.

Included in this report is a series of detailed statements about the
Series' holdings and financial condition. We hope you find them informative and
greatly appreciate your support.

Very truly yours,

Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation

November 15, 1996
New York, N.Y.

*Total return includes reinvestment of dividends and any capital gains paid,
without taking into account the maximum initial sales charge in the case of
Class A shares or the applicable contingent deferred sales charge imposed on
redemptions in the case of Class B or Class C shares.
**Some income may be subject to the Federal Alternative Minimum Tax (AMT) for
certain shareholders. Income may be subject to some State and local taxes for
non-Connecticut residents.
***Distribution rate per share is based upon dividends per share paid from net
investment income during the period (annualized), divided by the maximum
offering price, in the case of Class A shares, or the net asset value per
share, in the case of Class B and Class C shares, at the end of the period.

<PAGE>
Premier State Municipal Bond Fund, Connecticut Series
- ---------------------------------------------------------
Statement of Investments October 31, 1996 (Unaudited)

<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments--99.8% Amount Value
- --------------------------------------------------------------------------------- ------------ ------------
<S> <C> <C>
Connecticut--78.7%
Connecticut:
5.50%, 3/15/2010............................................................... $ 3,000,000 $ 3,058,200
6.875%, 7/15/2010 (Prerefunded 7/15/2000) (a).................................. 7,100,000 7,813,763
6.75%, 3/1/2011 (Prerefunded 3/1/2001) (a)..................................... 3,000,000 3,315,420
5.50%, 5/15/2014............................................................... 2,000,000 2,002,480
5.375%, 10/1/2014.............................................................. 6,500,000 6,418,750
5.50%, 5/15/2015............................................................... 3,000,000 2,991,300
Special Tax Obligation Revenue (Transportation Infrastructure):
Refunding 5.375%, 9/1/2008................................................... 2,500,000 2,541,425
7.125%, 6/1/2010............................................................. 8,400,000 9,875,124
6.75%, 6/1/2011 (Prerefunded 6/1/2003) (a)................................... 8,500,000 9,499,345
Connecticut Clean Water Fund, Revenue:
7%, 1/1/2011 (Prerefunded 1/1/2001) (a)........................................ 6,700,000 7,332,078
5.125%, 5/1/2018............................................................... 7,000,000 6,583,150
Connecticut Development Authority, Revenue:
First Mortgage Gross
(Elim Park Baptist Home Inc. Project) 9%, 12/1/2020.......................... 3,565,000 3,795,442
Health Care:
(Jerome Home Project) 8%, 11/1/2019.......................................... 1,940,000 2,028,503
(Masonic Charity Foundation of Connecticut) 6.50%, 8/1/2020 (Insured; AMBAC). 4,150,000 4,390,908
Life Care Facilities (Seabury Project):
Refunding 8.75%, 9/1/2006.................................................... 1,625,000 1,634,409
10%, 9/1/2021................................................................ 11,175,000 11,869,415
Connecticut Health and Educational Facilities Authority, Revenue:
(Bridgeport Hospital, Connie Lee) 5.375%, 7/1/2025............................ 2,125,000 2,012,099
(Danbury Hospital) 6.50%, 7/1/2014 (Insured; MBIA)............................. 3,250,000 3,487,250
(Day Kimball Hospital) 5.375%, 7/1/2026 (Insured; FSA)......................... 2,000,000 1,922,520
(Greenwich Academy) 5.75%, 3/1/2026 (Insured; FSA)............................. 3,130,000 3,141,362
(Greenwich Hospital) 5.80%, 7/1/2026 (Insured; MBIA)........................... 9,365,000 9,423,344
(Hartford University):
6.75%, 7/1/2012.............................................................. 3,500,000 3,593,135
8%, 7/1/2018 (Prerefunded 7/1/2003) (a)...................................... 3,025,000 3,385,096
6.80%, 7/1/2022.............................................................. 8,500,000 8,705,105
(Johnson Evergreen Corp.) 8.50%, 7/1/2022...................................... 4,500,000 4,768,245
(Middlesex Hospital) 6.25%, 7/1/2022 (Insured; MBIA)........................... 2,500,000 2,632,550
(New Britain Memorial Hospital) 7.75%, 7/1/2022................................ 16,000,000 17,191,520
(Norwalk Hospital) 6.25%, 7/1/2022 (Insured; MBIA)............................. 3,600,000 3,790,872
(Quinnipiac College) 6%, 7/1/2013.............................................. 6,545,000 6,249,428
(Refunding-Nursing Home Program--3030 Park Fairfield Health Center Project)
6.25%, 11/1/2021............................................................. 2,500,000 2,590,825
(Sacred Heart University):
6.50%, 7/1/2016.............................................................. 2,000,000 2,025,060
6.625%, 7/1/2026............................................................. 3,000,000 3,098,160

<PAGE>
Premier State Municipal Bond Fund, Connecticut Series
- --------------------------------------------------------------------
Statement of Investments (continued) October 31, 1996 (Unaudited)

Connecticut Health and Educational Facilities Authority, Revenue (continued):
(Trinity College) 5.875%, 7/1/2026 (Insured; MBIA)............................. $ 2,500,000 $ 2,543,075
(University of New Haven):
6.625%, 7/1/2016............................................................. 2,050,000 2,065,150
6.70%, 7/1/2026.............................................................. 8,605,000 8,671,861
(Veternarian Memorial Medical Center) 5.50%, 7/1/2026 (Insured; MBIA).......... 8,070,000 7,856,468
(Yale, New Haven Hospital) 5.70%, 7/1/2025 (Insured; MBIA)..................... 5,820,000 5,826,868
Connecticut Housing Finance Authority (Housing Mortgage Finance Program):
7.20%, 11/15/2008.............................................................. 7,995,000 8,311,362
6.45%, 5/15/2022............................................................... 6,000,000 6,119,220
6.70%, 11/15/2022.............................................................. 23,935,000 24,759,321
6.75%, 11/15/2023.............................................................. 6,000,000 6,283,500
Connecticut Municipal Electric Energy Cooperative, Power Supply System Revenue,
Refunding:
5%, 1/1/2011 (Insured; MBIA)................................................... 4,660,000 4,465,585
5%, 1/1/2012 (Insured; MBIA)................................................... 2,000,000 1,912,740
5%, 1/1/2013 (Insured; MBIA)................................................... 2,000,000 1,898,800
Eastern Connecticut Resource Recovery Authority, Solid Waste Revenue
(Wheelabrator Lisbon Project):
5.50%, 1/1/2014.............................................................. 10,000,000 9,493,500
5.50%, 1/1/2020.............................................................. 7,250,000 6,629,690
New Haven
7.40%, 8/15/2011............................................................... 1,500,000 1,645,185
South Central Connecticut Regional Water Authority, Water Systems Revenue
5.375%, 8/1/2016 (Insured; FGIC)............................................... 4,650,000 4,582,854
Stamford 6.60%, 1/15/2010........................................................ 2,750,000 3,121,305
University of Connecticut 5%, 2/1/2015 (Insured; FGIC)........................... 1,250,000 1,173,675

U. S. Related--21.1%
Commonwealth of Puerto Rico 5.40%, 7/1/2025...................................... 13,000,000 12,285,130
Puerto Rico:
(Public Improvement) 6.80%, 7/1/2021 (Prerefunded 7/1/2002) (a)................ 6,000,000 6,777,120
Refunding 5.50%, 7/1/2013...................................................... 3,000,000 2,926,290
Puerto Rico Aqueduct and Sewer Authority, Revenue 6%, 7/1/2009................... 7,250,000 7,610,760
Puerto Rico Electric Power Authority, Power Revenue
7%, 7/1/2021 (Prerefunded 7/1/2001) (a)........................................ 6,775,000 7,643,894
Puerto Rico Highway and Transportation Authority, Highway Revenue:
6.593%, 7/1/2010 (b)........................................................... 3,200,000 3,024,000
6.625%, 7/1/2018 (Prerefunded 7/1/2002) (a).................................... 5,000,000 5,605,500
5.50%, 7/1/2026................................................................ 5,000,000 4,798,600
5.50%, 7/1/2036................................................................ 5,000,000 4,778,900

<PAGE>
Premier State Municipal Bond Fund, Connecticut Series
- ---------------------------------------------------------------------
Statement of Investments (continued) October 31, 1996 (Unaudited)

Puerto Rico Industrial Medical and Environmental Pollution Control Facilities
Financing Authority, Revenue (Motorola Inc. Project) 6.75%, 1/1/2014........... $ 2,000,000 $ 2,207,340
Puerto Rico Ports Authority, Special Facilities Revenue (American Airlines):
6.30%, 6/1/2023................................................................ 2,000,000 2,020,980
6.25%, 6/1/2026................................................................ 250,000 253,604
Puerto Rico Public Buildings Authority, Guaranteed Public Education and Health
Facilities, Refunding 5.75%, 7/1/2015.......................................... 4,000,000 3,947,839
University of Puerto Rico, University Revenue:
5.50%, 6/1/2015 (Insured; MBIA)................................................ 5,000,000 4,996,849
5.25%, 6/1/2025 (Insured; MBIA)................................................ 3,400,000 3,280,421
------------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $328,861,882)........................ $342,683,669
------------
------------

Short-Term Municipal Investments--.2%
U.S. Related:
Puerto Rico Electric Power Authority, Power Revenue 3.29% (Insured; FSA) (b)
(cost $800,000)................................................................ $ 800,000 $ 800,000
------------
------------
TOTAL INVESTMENTS--100.0%
(cost $329,661,882)............................................................ $343,483,669
------------
------------

</TABLE>

Summary of Abbreviations

<TABLE>

<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation FSA Financial Security Assurance
FGIC Financial Guaranty Insurance Company MBIA Municipal Bond Investors Assurance
Insurance Corporation
</TABLE>

Summary of Combined Ratings

<TABLE>

<S> <C> <C> <C> <C> <C>
Fitch (c) or Moody's or Standard & Poor's Percentage of Value
- --------- ------- ----------------- -------------------
AAA Aaa AAA 35.0%
AA Aa AA 25.7
A A A 15.3
BBB Baa BBB 17.0
Not Rated (d) Not Rated (d) Not Rated (d) 7.0
------
100.0%
------
------

Notes to Statement of Investments:
(a) Bonds which are prerefunded are collateralized by U.S. Government
securities which are held in escrow and are used to pay prinicpal
and interest on the municipal issue and to retire the bonds in full
at the earliest refunding date.
(b) Inverse floater security--the interest rate is subject to change
periodically.
(c) Fitch currently provides creditworthiness information for a limited
number of investments.
(d) Securities which, while not rated by Fitch, Moody's or Standard & Poor's
have been determined by the Manager to be of comparable quality to those
rated securities in which the Fund may invest.

</TABLE>

See notes to financial statements.

<PAGE>
Premier State Municipal Bond Fund, Connecticut Series
- -----------------------------------------------------------------------------
Statement of Assets and Liabilities October 31, 1996 (Unaudited)

Cost Value
------------ ------------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments........ $329,661,882 $343,483,669
Cash........................................................... 7,987,461
Interest receivable............................................ 7,645,083
Receivable for investment securities sold...................... 1,613,432
Receivable for shares of Beneficial Interest subscribed........ 192,519
Prepaid expenses............................................... 5,073
------------
360,927,237
------------

LIABILITIES: Due to The Dreyfus Corporation and affiliates.................. 167,983
Due to Distributor............................................. 94,640
Payable for shares of Beneficial Interest redeemed............. 480,607
Accrued expenses............................................... 62,689
------------
805,919
------------
NET ASSETS..................................................................... $360,121,318
------------
------------

REPRESENTED BY: Paid-in capital................................................ $339,138,334
Accumulated net realized gain (loss) on investments............ 7,161,197
Accumulated net unrealized appreciation (depreciation)
on investments--Note 3....................................... 13,821,787
------------
NET ASSETS..................................................................... $360,121,318
------------
------------

</TABLE>

NET ASSET VALUE PER SHARE
-------------------------
<TABLE>
<CAPTION>
Class A Class B Class C
------------ ------------ -------------
<S> <C> <C> <C>
Net Assets.................................................. $316,975,204 $42,167,043 $979,071
Shares Outstanding.......................................... 26,110,532 3,475,142 80,724
NET ASSET VALUE PER SHARE................................... $12.14 $12.13 $12.13
------ ------ ------
------ ------ ------

</TABLE>

See notes to financial statements.

<PAGE>
Premier State Municipal Bond Fund, Connecticut Series
- ------------------------------------------------------------------------
Statement of Operations Six Months Ended October 31, 1996 (Unaudited)

<TABLE>

<S> <C> <C> <C>
INVESTMENT INCOME
INCOME Interest Income............................................. $11,365,066
EXPENSES: Management fee--Note 2(a)................................... $ 994,435
Shareholder servicing costs--Note 2(c)...................... 560,150
Distribution fees--Note 2(b)................................ 105,604
Professional fees........................................... 22,920
Custodian fees.............................................. 19,968
Prospectus and shareholders' reports........................ 8,956
Trustees' fees and expenses--Note 2(d)...................... 1,991
Registration fees........................................... 1,974
Miscellaneous............................................... 56,321
----------
Total Expenses......................................... 1,772,319
-----------
INVESTMENT INCOME--NET........................................................... 9,592,747

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 3:

Net realized gain (loss) on investments..................... $3,638,295
Net unrealized appreciation (depreciation) on investments... 3,511,644
----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS........................... 7,149,939
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............................. $16,742,686
-----------
-----------

</TABLE>

See notes to financial statements.

<PAGE>
Premier State Municipal Bond Fund, Connecticut Series
- ------------------------------------------------------------------
Statement of Changes in Net Assets

DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Class A shares...................................................... (8,584,770) (18,231,897)
Class B shares...................................................... (984,821) (1,877,253)
Class C shares...................................................... (23,156) (7,064)
------------ ------------
Total Dividends................................................... (9,592,747) (20,116,214)
------------ ------------

BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares...................................................... 6,692,407 14,645,030
Class B shares...................................................... 3,926,940 5,468,178
Class C shares...................................................... 332,931 1,023,317
Dividends reinvested:
Class A shares...................................................... 4,840,622 10,502,564
Class B shares...................................................... 676,690 1,298,271
Class C shares...................................................... 18,884 6,163
Cost of shares redeemed:
Class A shares...................................................... (22,427,908) (43,749,996)
Class B shares...................................................... (2,093,406) (3,727,309)
Class C shares...................................................... (399,398) (1,996)
------------ ------------
Increase (Decrease) in Net Assets from Beneficial Interest Transactions (8,432,238) (14,535,778)
------------ ------------
Total Increase (Decrease) in Net Assets......................... (1,282,299) (9,985,329)

NET ASSETS:
Beginning of Period................................................... 361,403,617 371,388,946
------------ ------------
End of Period......................................................... $360,121,318 $361,403,617
------------ ------------
------------ ------------
</TABLE>

See notes to financial statements.

<PAGE>
Premier State Municipal Bond Fund, Connecticut Series
- -----------------------------------------------------------------
Statement of Changes in Net Assets (continued)

Shares
---------------------------------
Six Months Ended
October 31, 1996 Year Ended
(Unaudited) April 30, 1996
---------------- --------------
CAPITAL SHARE TRANSACTIONS:
<S> <C> <C>
Class A
-------
Shares sold............................................................. 559,419 1,212,141
Shares issued for dividends reinvested.................................. 403,457 869,313
Shares redeemed......................................................... (1,875,787) (3,626,051)
---------- ----------
---------- ----------
Net Increase (Decrease) in Shares Outstanding..... (912,911) (1,544,597)
---------- ----------
---------- ----------
Class B
-------
Shares sold............................................................. 328,260 453,771
Shares issued for dividends reinvested.................................. 56,423 107,482
Shares redeemed......................................................... (174,913) (309,036)
---------- ----------
Net Increase (Decrease) in Shares Outstanding..... 209,770 252,217
---------- ----------
---------- ----------
Class C*
--------
Shares sold............................................................. 27,811 84,387
Shares issued for dividends reinvested.................................. 1,576 515
Shares redeemed......................................................... (33,397) (168)
---------- ----------
Net Increase (Decrease) in Shares Outstanding..... (4,010) 84,734
---------- ----------
---------- ----------

- --------------------
* From August 15, 1995 (commencement of initial offering) to April 30, 1996.

</TABLE>

See notes to financial statements.

<PAGE>
Premier State Municipal Bond Fund, Connecticut Series
- --------------------------------------------------------
Financial Highlights

Contained below is per share operating performance data for a
share of Beneficial Interest outstanding, total investment return, ratios
to average net assets and other supplemental data for each period indicated.
This information has been derived from the Fund's financial statements.

Class A Shares
-----------------------------------------------------------------
Six Months Ended
October 31, 1996 Year Ended April 30,
---------------------------------------------
PER SHARE DATA: (Unaudited) 1996 1995 1994 1993 1992
----------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period............... $11.90 $11.76 $11.81 $12.26 $11.45 $11.28
------ ------ ------ ------ ------ ------
Investment Operations:
Investment income--net............................. .32 .66 .67 .68 .71 .72
Net realized and unrealized gain (loss)
on investments................................... .24 .14 (.05) (.42) .81 .17
------ ------ ------ ------ ------ ------
Total from Investment Operations................... .56 .80 .62 .26 1.52 .89
------ ------ ------ ------ ------ ------
Distributions:
Dividends from investment income--net.............. (.32) (.66) (.67) (.68) (.71) (.72)
Dividends from net realized gain on investments.... -- -- -- (.03) -- --
------ ------ ------ ------ ------ ------
Total Distributions................................ (.32) (.66) (.67) (.71) (.71) (.72)
------ ------ ------ ------ ------ ------
Net asset value, end of period..................... $12.14 $11.90 $11.76 $11.81 $12.26 $11.45
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
TOTAL INVESTMENT RETURN(1)........................... 9.52%(2) 6.85% 5.47% 1.92% 13.62% 8.14%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............ .92%(2) .92% .89% .80% .69% .52%
Ratio of net investment income
to average net assets............................ 5.37%(2) 5.45% 5.77% 5.44% 5.93% 6.30%
Decrease reflected in above expense ratios
due to undertakings by the Manager............... -- -- .01% .09% .21% .41%
Portfolio Turnover Rate............................ 14.72%(3) 28.83% 10.48% 10.83% 24.22% 8.53%
Net Assets, end of period (000's Omitted).......... $316,975 $321,559 $335,964 $364,182 $360,020 $280,305

(1) Exclusive of sales load.
(2) Annualized.
(3) Not annualized.

</TABLE>

See notes to financial statements.

<PAGE>
Premier State Municipal Bond Fund, Connecticut Series
- ------------------------------------------------------
Financial Highlights (continued)

Contained below is per share operating performance data for a share
of Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.

Class B Shares
------------------------------------------------------
Six Months Ended
October 31, 1996 Year Ended April 30,
------------------------------------
PER SHARE DATA: (Unaudited) 1996 1995 1994 1993(1)
----------- ------ ------ ------ --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period................................. $11.89 $11.76 $11.80 $12.26 $11.89
------ ------ ------ ------ ------
Investment Operations:
Investment income--net............................................... .29 .60 .61 .61 .18
Net realized and unrealized gain (loss)
on investments..................................................... .24 .13 (.04) (.43) .37
------ ------ ------ ------ ------
Total from Investment Operations..................................... .53 .73 .57 .18 .55
------ ------ ------ ------ ------
Distributions:
Dividends from investment income--net................................ (.29) (.60) (.61) (.61) (.18)
Dividends from net realized gain on investments...................... -- -- -- (.03) --
------ ------ ------ ------ ------
Total Distributions.................................................. (.29) (.60) (.61) (.64) (.18)
------ ------ ------ ------ ------
Net asset value, end of period....................................... $12.13 $11.89 $11.76 $11.80 $12.26
------ ------ ------ ------ ------
------ ------ ------ ------ ------
TOTAL INVESTMENT RETURN(2)............................................. 8.99%(3) 6.20% 4.99% 1.26% 16.08%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.............................. 1.44%(3) 1.44% 1.41% 1.36% 1.12%(3)
Ratio of net investment income
to average net assets.............................................. 4.84%(3) 4.92% 5.21% 4.78% 4.57%(3)
Decrease reflected in above expense ratios
due to undertakings by the Manager................................. -- -- .01% .08% .12%(3)
Portfolio Turnover Rate.............................................. 14.72%(4) 28.83% 10.48% 10.83% 24.22%
Net Assets, end of period (000's Omitted)............................ $42,167 $38,838 $35,425 $32,246 $9,492

<FN>
- -------------------------
(1) From January 15, 1993 (commencement of initial offering) to April 30, 1993.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
</FN>
</TABLE>

See notes to financial statements.

<PAGE>
Premier State Municipal Bond Fund, Connecticut Series
- ------------------------------------------------------
Financial Highlights (continued)

Contained below is per share operating performance data for a share
of Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.

Class C Shares
-------------------------------------------------
Six Months Ended
October 31, 1996 Year Ended
PER SHARE DATA: (Unaudited) April 30, 1996 (1)
---------------- ------------------

<S> <C> <C>
Net asset value, beginning of period............. $11.89 $11.84
------ ------
Investment Operations:
Investment income--net........................... .28 .40
Net realized and unrealized gain (loss)
on investments................................. .24 .05
------ ------
Total from Investment Operations................. .52 .45
------ ------
Distributions:
Dividends from investment income--net............ (.28) (.40)
Dividends from net realized gain on investments.. -- --
------ ------
Total Distributions.............................. (.28) (.40)
------ ------
Net asset value, end of period................... $12.13 $11.89
------ ------
------ ------
TOTAL INVESTMENT RETURN(2)......................... 8.75%(3) 5.31%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.......... 1.67%(3) 1.64%(3)
Ratio of net investment income
to average net assets.......................... 4.65%(3) 4.31%(3)
Portfolio Turnover Rate.......................... 14.72%(4) 28.83%
Net Assets, end of period (000's Omitted)........ $979 $1,007

<FN>
(1) From August 15, 1995 (commencement of initial offering) to April 30, 1996.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
</FN>
</TABLE>

See notes to financial statements.

Premier State Municipal Bond Fund, Connecticut Series
- -------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1--Significant Accounting Policies:

Premier State Municipal Bond Fund (the "Trust") is registered under
the Investment Company Act of 1940 ("Act") as a non-diversified open-end
management investment company and operates as a series company currently
offering twelve series including the Connecticut Series (the "Fund"). The
Fund's investment objective is to maximize current income exempt from Federal
and, where applicable, from State income taxes, without undue risk. The Dreyfus
Corporation ("Manager") serves as the Fund's investment adviser. The Manager
is a direct subsidiary of Mellon Bank, N.A.

On October 31, 1996, the Board of Trustees approved an Agreement and
Plan of Reorganization providing for the transfer of all or substantially all
of the assets and liabilities of Premier Insured Municipal Bond Fund,
Connecticut Series to the Fund in a tax free exchange for shares of the Fund at
net asset value and the assumption of stated liabilities (the "Exchange"). The
Exchange is subject to the approval of Premier Insured Municipal Bond Fund,
Connecticut Series.

Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares. The Fund is authorized to issue an unlimited
number of $.001 par value shares in the following classes of shares: Class A,
Class B and Class C. Class A shares are subject to a sales charge imposed at
the time of purchase, Class B shares are subject to a contingent deferred sales
charge imposed at the time of redemption on redemptions made within six years
of purchase and Class C shares are subject to a contingent deferred sales
charge imposed at the time of redemption on redemptions made within one year of
purchase. Other differences between the three Classes include the services
offered to and the expenses borne by each Class and certain voting rights.

The Trust accounts separately for the assets, liabilities and
operations of each fund. Expenses directly attributable to each fund are
charged to that fund's operations; expenses which are applicable to all funds
are allocated among them on a pro rata basis.

The Fund's financial statements are prepared in accordance with
generally accepted accounting principles which may require the use of
management estimates and assumptions. Actual results could differ from those
estimates.

(a) Portfolio valuation: The Fund's investments (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service ("Service") approved by the Board
of Trustees. Investments for which quoted bid prices are readily available and
are representative of the bid side of the market in the judgment of the Service
are valued at the mean between the quoted bid prices (as obtained by the Service
from dealers in such securities) and asked prices (as calculated by the Service
based upon its evaluation of the market for such securities). Other investments
(which constitute a majority of the portfolio securities) are carried at fair
value as determined by the Service, based on methods which include consideration
of: yields or prices of municipal securities of comparable quality, coupon,
maturity and type; indications as to values from dealers; and general market
conditions. Options and financial futures on municipal and U.S. treasury
securities are valued at the last sales price on the securities exchange on
which such securities are primarily traded or at the last sales price on the
national securities market on each business day. Investments not listed on an
exchange or the national securities market, or securities for which there were
no transactions, are valued at the average of the most recent bid and asked
prices. Bid price is used when no asked price is available.

<PAGE>
Premier State Municipal Bond Fund, Connecticut Series
- ---------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual
basis. Securities purchased or sold on a when-issued or delayed-delivery basis
may be settled a month or more after the trade date.

The Fund follows an investment policy of investing primarily in
municipal obligations of one state. Economic changes affecting the state and
certain of its public bodies and municipalities may affect the ability of
issuers within the state to pay interest on, or repay principal of, municipal
obligations held by the Fund.

(c) Dividends to shareholders: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to
comply with the distribution requirements of the Internal Revenue Code. To the
extent that net realized capital gain can be offset by capital loss carryovers,
if any, it is the policy of the Fund not to distribute such gain.

(d) Federal income taxes: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal Revenue
Code, and to make distributions of income and net realized capital gain
sufficient to relieve it from substantially all Federal income and excise
taxes.

NOTE 2--Management Fee and Other Transactions With Affiliates:

(a) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .55 of 1% of the value of
the Funds' average daily net assets and is payable monthly. The Agreement
provides that if in any full fiscal year the aggregate expenses of the Fund,
exclusive of taxes, brokerage, interest on borrowings and extraordinary
expenses, exceed the expense limitation of any state having jurisdiction over
the Fund, the Fund may deduct from payments to be made to the Manager, or the
Manager will bear the amount of such excess to the extent required by state
law. There was no expense reimbursement during the period ended October 31,
1996.

Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager,
retained $12,005 during the period ended October 31, 1996, from commissions
earned on sales of the Fund's shares.

(b) Under the Distribution Plan adopted pursuant to Rule 12b-1 under
the Act, the Fund pays the Distributor for distributing the Fund's Class B and
Class C shares at an annual rate of .50 of 1% of the value of the average daily
net assets of Class B shares and .75 of 1% of the value of the average daily
net assets of Class C shares. During the period ended October 31, 1996,
$101,871 was charged to the Fund for the Class B shares and $3,733 was charged
to the Fund for the Class C shares.

(c) Under the Shareholder Services Plan, the Fund pays the Distributor
at an annual rate of .25 of 1% of the value of the average daily net assets of
Class A, Class B and Class C shares for the provision of certain services. The
services provided may include personal services relating to shareholder
accounts, such as answering shareholder inquiries regarding the Fund and
providing reports and other information, and services related to the
maintenance of shareholder accounts. The Distributor may make payments to
Service Agents (a securities dealer, financial institution or other industry
professional) in respect of these services. The Distributor determines the
amounts to be paid to Service Agents. During the period ended October 31,
1996, $399,836, $50,936 and $1,244 were charged to Class A, B and C shares,
respectively, by the Distributor pursuant to the Shareholder Services Plan.

Premier State Municipal Bond Fund, Connecticut Series
- --------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary
of the Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. Such compensation
amounted to $69,642 during the period ended October 31, 1996.

(d) Each trustee who is not an "affiliated person" as defined in the
Act receives from the Trust an annual fee of $2,500 and an attendance fee of
$250 per meeting. The Chairman of the Board receives an additional 25% of such
compensation.

NOTE 3--Securities Transactions:

The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended October 31, 1996
amounted to $52,285,559 and $87,517,786, respectively.

At October 31, 1996, accumulated net unrealized appreciation on
investments was $13,821,787, consisting of $15,091,934 gross unrealized
appreciation and $1,270,147 gross unrealized depreciation.

At October 31, 1996, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).

<PAGE>
Premier State Municipal
Bond Fund, Connecticut Series
200 Park Avenue
New York, NY 10166

Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166

Custodian
The Bank of New York
90 Washington Street
New York, NY 10286

Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940

Printed in U.S.A. 064/623SA9610
<PAGE>
Semi-Annual Report
Premier State
Municipal Bond Fund
Florida Series

October 31, 1996

Premier State Municipal Bond Fund, Florida Series
- ---------------------------------------------------
Letter to Shareholders

<PAGE>
Premier State Municipal Bond Fund, Florida Series
- ----------------------------------------------------------------------------
Statement of Investments October 31, 1996 (Unaudited)

Principal
Long-Term Municipal Investments--100.0% Amount Value
- ---------------------------------------------------------------------------------------- ------------ ------------
<S> <C> <C>
Florida--93.8%
Alachua County Health Facilities Authority, Health Facilities Revenue, Refunding
(Santa Fe Healthcare Facilities Project)
7.60%, 11/15/2013 (Prerefunded 11/15/2000) (a)........................................ $ 3,500,000 $ 3,973,830
Arcadia, Water and Sewer Revenue 7.75%, 12/1/2021 (Prerefunded 12/1/2000) (a)........... 2,190,000 2,453,917
Boynton Beach, MFMR (Clipper Cove Apartments) 6.45%, 1/1/2027........................... 2,000,000 2,028,380
Brevard County Health Facilities Authority, HR
(Holmes Regional Medical Center Project) 5.625%, 10/1/2014 (Insured; MBIA)............ 2,000,000 2,011,240
Broward County Health Facilities Authority, Revenue, Refunding
(Broward County Nursing Home) 7.50%, 8/15/2020 (LOC; Allied Irish Bank) (b)........... 1,000,000 1,071,600
Charlotte County:
Healthcare Facilities Revenue (Charlotte Community Mental Health Project)
9.25%, 7/1/2020..................................................................... 1,615,000 1,771,380
Utility Revenue, Refunding 5.625%, 10/1/2021 (Insured; FGIC).......................... 3,000,000 2,995,860
Clay County Housing Finance Authority, SFMR
8.20%, 6/1/2021 (Collateralized; GNMA)................................................ 670,000 705,610
Dade County:
Aviation Revenue 6.55%, 10/1/2013 (Insured; MBIA)..................................... 2,225,000 2,390,740
Refunding (Seaport) 5.125%, 10/1/2021 (Insured; MBIA)................................. 7,500,000 7,057,650
Special Obligation, Refunding 5%, 10/1/2035 (Insured; AMBAC).......................... 6,000,000 5,444,940
Water and Sewer Systems Revenue:
6.25%, 10/1/2011 (Insured; FGIC).................................................... 2,115,000 2,330,624
5.50%, 10/1/2025 (Insured; FGIC).................................................... 5,000,000 4,903,950
Dade County Health Facilities Authority, HR
(South Shore Hospital and Medical Center) 7.60%, 8/1/2024 (Insured; FHA).............. 2,285,000 2,490,124
Dade County Housing Finance Authority, Revenue, Refunding, SFMR
6.70%, 4/1/2028 (Collateralized: FNMA & GNMA)......................................... 4,500,000 4,600,845
Duval County Housing Finance Authority, SFMR:
7.85%, 12/1/2022 (Collateralized; GNMA)............................................... 2,625,000 2,774,730
7.70%, 9/1/2024 (Collateralized; GNMA)................................................ 1,430,000 1,518,774
Escambia County, PCR (Champion International Corp. Project) 6.40%, 9/1/2030............. 5,000,000 5,082,450
Escambia County Housing Finance Authority, SFMR 7.80%, 4/1/2022......................... 1,030,000 1,093,881
First Florida Governmental Financing Commission, Revenue (Gainesville, Hollywood and
St. Petersburg) 5.75%, 7/1/2016 (Insured; AMBAC)...................................... 2,150,000 2,165,996
Florida Board of Education, Capital Outlay, Refunding 5%, 6/1/2016...................... 2,750,000 2,578,427
Florida Division of Bond Finance Department, General Services Revenues
(Department of Natural Resources-Preservation 2000)
5.75%, 7/1/2013 (Insured; AMBAC)...................................................... 7,695,000 7,845,745

<PAGE>
Premier State Municipal Bond Fund, Florida Series
- --------------------------------------------------------------------------------
Statement of Investments (continued) October 31, 1996 (Unaudited)

Principal
Long-Term Municipal Investments (continued) Amount Value
- ---------------------------------------------------------------------------------------- ------------ ------------
Florida (continued)
Florida Housing Finance Agency:
(Brittany Rosemont Apartments) 7%, 2/1/2035........................................... $ 6,000,000 $ 6,387,480
Single Family Mortgage, Refunding 6.65%, 1/1/2024..................................... 2,415,000 2,492,111
(Turtle Creek Apartment Projects) 6.10%, 5/1/2016 (Insured; AMBAC).................... 1,000,000 1,019,880
Gainesville, Utility System Revenue, Refunding 5.20%, 11/1/2026......................... 5,000,000 4,714,500
Highlands County Health Facilities Authority, Revenue (Adventist Sunbelt Hospital)
7%, 11/15/2014........................................................................ 1,500,000 1,634,040
Hillsborough, Capital Improvement Program, Revenue, Refunding
5%, 8/1/2015 (Insured; FGIC).......................................................... 3,325,000 3,126,165
Hillsborough County, Utility Revenue, Refunding:
6.625%, 8/1/2011...................................................................... 4,000,000 4,275,880
7%, 8/1/2014.......................................................................... 4,765,000 5,136,432
Hillsborough County Aviation Authority, Revenue, Refunding (Delta Airlines):
6.80%, 1/1/2024....................................................................... 2,500,000 2,607,225
7.75%, 1/1/2024....................................................................... 1,500,000 1,594,335
Indian River County, Water and Sewer Revenue 5.50%, 9/1/2016 (Insured; FGIC)............ 1,750,000 1,736,298
Indian Trace Community Development District, Water and Sewer Revenue
8.50%, 4/1/1997....................................................................... 151,000 151,000
Jacksonville, Excise Taxes Revenue, Refunding 5%, 10/1/2016 (Insured; FGIC)............. 3,490,000 3,274,213
Jacksonville, Water and Sewer Revenue 5%, 10/1/2020 (Insured; MBIA)..................... 3,000,000 2,777,220
Jacksonville Health Facilities Authority, HR, Refunding (Saint Luke's Hospital)
7.125%, 11/15/2020.................................................................... 6,700,000 7,345,076
Lakeland, Electric and Water Revenue:
5.50%, 10/1/2026...................................................................... 6,250,000 6,119,500
5.625%, 10/1/2036..................................................................... 10,000,000 9,781,700
Lee County Housing Finance Authority, SFMR (Multi-County Program) 7.45%, 9/1/2027....... 1,500,000 1,666,275
North Miami Health Facilities Authority, Health Facilities Revenue
(Villa Maria Nursing Housing Project) 7.50%, 9/1/2012................................. 2,605,000 2,855,497
Okaloosa County Gas District, Gas System Revenue 5.50%, 10/1/2021 (Insured; MBIA) (c)... 3,295,000 3,244,323
Orange County, Solid Waste Facilities Revenue 6.375%, 10/1/2007 (Insured; FGIC) 4,910,000 5,321,213
Orange County Health Facilities Authority, Health Facilities Revenue
(Mental Health Service Project) 9.25%, 7/1/2020 (Prerefunded 7/1/2000) (a)............ 3,735,000 4,370,361
Osceola County Industrial Development Authority, Revenue
(Community Provider Pooled Loan Program) 7.75%, 7/1/2017.............................. 5,235,000 5,355,929
Palm Beach County:
Solid Waste Industrial Development Revenue:
(Okeelanta Power LP Project) 6.85%, 2/15/2021....................................... 11,000,000 10,024,740
(Osceola Power LP) 6.85%, 1/1/2014................................................. 5,800,000 5,278,580
Water and Sewer Revenue 5%, 10/1/2010 (Insured; MBIA) (d)............................. 4,320,000 4,178,909

Principal
Long-Term Municipal Investments (continued) Amount Value
- ---------------------------------------------------------------------------------------- ------------ ------------
Florida (continued)
Palm Beach County Housing Finance Authority, Single Family Mortgage,
Purchase Revenue 6.55%, 4/1/2027...................................................... $ 2,750,000 $ 2,845,178
Panama City, Water and Sewer Revenue 5.625%, 10/1/2016 (Insured; MBIA).................. 2,000,000 2,003,340
Pinellas County, PCR, Refunding (Florida Power Corp.) 7.20%, 12/1/2014.................. 3,000,000 3,239,970
Pinellas County Housing Finance Authority, SFMR:
7.70%, 8/1/2022....................................................................... 2,750,000 2,918,960
(Multi-County Program) 6.70%, 2/1/2028 (Insured; FHA)................................. 5,000,000 5,152,150
Polk County Industrial Development Authority, IDR
(IMC Fertilizer) 7.525%, 1/1/2015..................................................... 10,000,000 10,573,400
Port Palm Beach District, Revenue 5.40%, 9/1/2018 (Insured; MBIA)....................... 3,000,000 2,904,510
Reedy Creek, Improvement District 5%, 6/1/2019 (Insured; AMBAC)......................... 9,000,000 8,350,380
Saint Lucie County, SWDR (Florida Power and Light Co. Project)
7.15%, 2/1/2023....................................................................... 4,000,000 4,357,080
Santa Rosa Bay Bridge Authority, Revenue:
6.25%, 7/1/2028....................................................................... 3,000,000 2,986,140
Zero Coupon, 7/1/2022................................................................. 4,000,000 735,160
Sarasota County, Utility System Revenue, Refunding:
5.25%, 10/1/2016 (Insured; FGIC)...................................................... 1,000,000 968,160
5.25%, 10/1/2025 (Insured; FGIC)...................................................... 3,500,000 3,342,220
Seminole Water Control District 6.75%, 8/1/2022......................................... 2,000,000 1,916,340
Tampa, Water and Sewer Revenue, Refunding 5.125%, 10/1/2017 (Insured; FGIC)............. 3,000,000 2,928,000
Volusia Educational Facilities Authority, Revenue
(Educational Facilities-Stetson University Project) 5.50%, 6/1/2026 (Insured; MBIA)... 1,500,000 1,483,710
U.S. Related--6.2%
Guam Airport Authority, Revenue 6.70%, 10/1/2023........................................ 5,000,000 5,149,950
Commonwealth of Puerto Rico Aqueduct and Sewer Authority, Revenue, Refunding
5%, 7/1/2019.......................................................................... 5,000,000 4,519,100
Virgin Islands Public Finance Authority, Revenue, Refunding 7.25%, 10/1/2018............ 5,400,000 5,786,856
------------
TOTAL INVESTMENTS (cost $239,351,612)................................................... $247,920,179
------------
------------
</TABLE>

<PAGE>
Premier State Municipal Bond Fund, Florida Series
- --------------------------------------------------------------------------------

<TABLE>

Summary of Abbreviations
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit
FGIC Financial Guaranty Insurance Company MBIA Municipal Bond Investors Assurance
FHA Federal Housing Administration Insurance Corporation
FNMA Federal National Mortgage Association MFMR Multi-Family Mortgage Revenue
GNMA Government National Mortgage Association PCR Pollution Control Revenue
HR Hospital Revenue SFMR Single Family Mortgage Revenue
IDR Industrial Development Revenue SWDR Solid Waste Disposal Revenue

</TABLE>

Summary of Combined Ratings (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>

<S> <C> <C> <C> <C> <C>
Fitch (e) or Moody's or Standard & Poor's Percentage of Value
- --------- ------- ----------------- -------------------
AAA Aaa AAA 49.0%
AA Aa AA 15.4
A A A 5.2
BBB Baa BBB 10.4
BB Ba BB 6.0
Not Rated (f) Not Rated (f) Not Rated (f) 14.0
------
100.0%
------
------
<FN>
Notes to Statement of Investments:
(a) Bonds which are prerefunded are collateralized by U.S. Government
securities which are held in escrow and are used to pay principal
and interest on the municipal issue and to retire the bonds in full
at the earliest refunding date.
(b) Secured by letter of credit.
(c) Purchased on a delayed-delivery basis.
(d) Wholly held by the custodian as collateral for a delayed-delivery security.
(e) Fitch currently provides creditworthiness information for a limited
number of investments.
(f) Securities which, while not rated by Fitch, Moody's or Standard & Poor's
have been determined by the Manager to be of comparable quality to those
rated securities in which the Fund may invest.
</FN>
</TABLE>

See notes to financial statements.

<PAGE>
Premier State Municipal Bond Fund, Florida Series
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities October 31, 1996 (Unaudited)

<TABLE>
<CAPTION>
Cost Value
------------ ------------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments.............. $239,351,612 $247,920,179
Receivable for investment securities sold............................ 6,610,822
Interest receivable.................................................. 3,476,787
Receivable for shares of Beneficial Interest subscribed.............. 72,443
Prepaid expenses..................................................... 3,156
------------
258,083,387
------------
LIABILITIES: Due to The Dreyfus Corporation and affiliates........................ 112,677
Due to Distributor................................................... 62,530
Cash overdraft due to Custodian...................................... 6,465,746
Payable for investment securities purchased.......................... 10,397,714
Payable for shares of Beneficial Interest redeemed................... 50,652
Accrued expenses..................................................... 49,545
------------
17,138,864
------------
NET ASSETS.............................................................................. $240,944,523
------------
------------
REPRESENTED BY: Paid-in capital...................................................... $228,548,705
Accumulated net realized gain (loss) on investments.................. 3,827,251
Accumulated net unrealized appreciation (depreciation)
on investments--Note 3............................................. 8,568,567
------------
NET ASSETS.............................................................................. $240,944,523
------------
------------
</TABLE>

NET ASSET VALUE PER SHARE
-------------------------

Class A Class B Class C
------------ ----------- -----------
<S> <C> <C> <C>
Net Assets............................................................. $214,281,296 $26,606,091 $57,136
Shares Outstanding..................................................... 14,605,281 1,814,282 3,897
NET ASSET VALUE PER SHARE.............................................. $14.67 $14.66 $14.66
------ ------ ------
------ ------ ------

</TABLE>

See notes to financial statements.

<PAGE>
Premier State Municipal Bond Fund, Florida Series
- --------------------------------------------------------------------------------
Statement of Operations Six Months Ended October 31, 1996 (Unaudited)

<TABLE>

INVESTMENT INCOME

<S> <C> <C> <C>
INCOME Interest Income................................... $7,738,797
EXPENSES: Management fee--Note 2(a)......................... $ 685,175
Shareholder servicing costs--Note 2(c)............ 398,537
Distribution fees--Note 2(b)...................... 67,217
Professional fees................................. 26,615
Custodian fees.................................... 15,150
Prospectus and shareholders' reports.............. 5,869
Trustees' fees and expenses--Note 2(d)............ 1,226
Registration fees................................. 1,179
Miscellaneous..................................... 9,642
----------
Total Expenses................................ 1,210,610
----------
INVESTMENT INCOME--NET.................................................... 6,528,187

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 3:
Net realized gain (loss) on investments........... $(1,697,941)
Net unrealized appreciation (depreciation) on
investments 4,870,225
----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS.................... 3,172,284
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS...................... $9,700,471
----------
----------

</TABLE>

See notes to financial statements.

<PAGE>
Premier State Municipal Bond Fund, Florida Series
- -----------------------------------------------------
Statement of Changes in Net Assets

DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Class A shares............................................................ (5,884,135) (13,092,008)
Class B shares............................................................ (642,988) (1,288,976)
Class C shares............................................................ (1,064) (344)
Net realized gain on investments:
Class A shares............................................................ -- (3,306,553)
Class B shares............................................................ -- (370,770)
Class C shares............................................................ -- (14)
------------ ------------
Total Dividends......................................................... (6,528,187) (18,058,665)
------------ ------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares............................................................ 2,462,994 9,844,149
Class B shares............................................................ 1,189,111 4,401,949
Class C shares............................................................ 51,648 36,586
Dividends reinvested:
Class A shares............................................................ 2,211,131 6,539,239
Class B shares............................................................ 218,833 644,364
Class C shares............................................................ 274 107
Cost of shares redeemed:
Class A shares............................................................ (20,691,100) (41,280,587)
Class B shares............................................................ (2,176,497) (3,176,969)
Class C shares............................................................ (30,476) --
------------ ------------
Increase (Decrease) in Net Assets from Beneficial Interest Transactions. (16,764,082) (22,991,162)
------------ ------------
Total Increase (Decrease) in Net Assets............................... (13,591,798) (23,151,770)

NET ASSETS:
Beginning of Period......................................................... 254,536,321 277,688,091
------------ ------------
End of Period............................................................... $240,944,523 $254,536,321
------------ ------------
------------ ------------
</TABLE>

See notes to financial statements.

<PAGE>
Premier State Municipal Bond Fund, Florida Series
- --------------------------------------------------------------------------------
Statement of Changes in Net Assets (continued)

Shares
----------------------------------------
Six Months Ended
October 31, 1996 Year Ended
(Unaudited) April 30, 1996
---------------- --------------
<S> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Class A
-------
Shares sold............................................................... 170,113 658,995
Shares issued for dividends reinvested.................................... 152,520 437,472
Shares redeemed........................................................... (1,427,951) (2,776,392)
----------- -----------
Net Increase (Decrease) in Shares Outstanding.......... (1,105,318) (1,679,925)
----------- -----------
----------- -----------
Class B
-------
Shares sold............................................................... 82,209 295,615
Shares issued for dividends reinvested.................................... 15,103 43,121
Shares redeemed........................................................... (150,217) (214,088)
----------- -----------
Net Increase (Decrease) in Shares Outstanding.......... (52,905) 124,648
----------- -----------
----------- -----------
Class C*
--------
Shares sold............................................................... 3,560 2,423
Shares issued for dividends reinvested.................................... 19 7
Shares redeemed........................................................... (2,112) --
----------- -----------
Net Increase (Decrease) in Shares Outstanding.......... 1,467 2,430
----------- -----------
----------- -----------

<FN>
- ----------------------
* From August 15, 1995 (commencement of initial offering) to April 30, 1996.
</FN>
</TABLE>

See notes to financial statements.

<PAGE>
Premier State Municipal Bond Fund, Florida Series
- ------------------------------------------------------
Financial Highlights

Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.

Class A Shares
------------------------------------------------------------
Six Months Ended
October 31, 1996 Year Ended April 30,
-----------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA: (Unaudited) 1996 1995 1994 1993 1992
----------- ------ ------ ------ ------ ------
Net asset value, beginning of period........................ $14.48 $14.51 $14.43 $15.02 $14.33 $13.93
------ ------ ------ ------ ------ ------
Investment Operations:
Investment income--net...................................... .39 .79 .81 .85 .92 .95
Net realized and unrealized gain (loss)
on investments............................................ .19 .17 .12 (.51) .86 .41
------ ------ ------ ------ ------ ------
Total from Investment Operations............................ .58 .96 .93 .34 1.78 1.36
------ ------ ------ ------ ------ ------
Distributions:
Dividends from investment income--net....................... (.39) (.79) (.81) (.85) (.92) (.95)
Dividends from net realized gain on investments............. -- (.20) (.04) (.04) (.17) (.01)
Dividends in excess of net realized gain
on investments............................................. -- -- -- (.04) -- --
------ ------ ------ ------ ------ ------
Total Distributions......................................... (.39) (.99) (.85) (.93) (1.09) (.96)
------ ------ ------ ------ ------ ------
Net asset value, end of period.............................. $14.67 $14.48 $14.51 $14.43 $15.02 $14.33
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
TOTAL INVESTMENT RETURN(1).................................... 8.01%(2) 6.63% 6.71% 2.14% 12.84% 10.09%

RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets..................... .92%(2) .91% .90% .80% .69% .52%
Ratio of net investment income
to average net assets..................................... 5.29%(2) 5.29% 5.67% 5.61% 6.21% 6.65%
Decrease reflected in above expense ratios
due to undertakings by the Manager........................ -- -- .01% .10% .21% .41%
Portfolio Turnover Rate..................................... 34.58%(3) 54.37% 50.62% 20.84% 33.18% 20.99%
Net Assets, end of period (000's Omitted)................... $214,281 $227,478 $252,406 $289,791 $299,775 $245,474

<FN>
- -------------------------
(1) Exclusive of sales load.
(2) Annualized.
(3) Not annualized.
</FN>
</TABLE>

See notes to financial statements.

Premier State Municipal Bond Fund, Florida Series
- ---------------------------------------------------
Financial Highlights (continued)

Contained below is per share operating performance data for a share
of Beneficial Interest outstanding, total investment return, ratios to
average net assets and other supplemental data for each period indicated.
This information has been derived from the Fund's financial statements.

Class B Shares
----------------------------------------------------
Six Months Ended
October 31, 1996 Year Ended April 30,
----------------------------------
PER SHARE DATA: (Unaudited) 1996 1995 1994 1993(1)
----------- ------ ------ ------ --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.............................. $14.47 $14.51 $14.42 $15.01 $14.59
------ ------ ------ ------ ------
Investment Operations:
Investment income--net............................................ .35 .71 .73 .77 .24
Net realized and unrealized gain (loss)
on investments.................................................. .19 .16 .13 (.51) .42
------ ------ ------ ------ ------
Total from Investment Operations.................................. .54 .87 .86 .26 .66
------ ------ ------ ------ ------
Distributions:
Dividends from investment income--net............................. (.35) (.71) (.73) (.77) (.24)
Dividends from net realized gain on investments................... -- (.20) (.04) (.04) --
Dividends in excess of net realized gain on investments........... -- -- -- (.04) --
------ ------ ------ ------ ------
Total Distributions............................................... (.35) (.91) (.77) (.85) (.24)
------ ------ ------ ------ ------
Net asset value, end of period.................................... $14.66 $14.47 $14.51 $14.42 $15.01
------ ------ ------ ------ ------
------ ------ ------ ------ ------
TOTAL INVESTMENT RETURN(2).......................................... 7.50%(3) 6.01% 6.21% 1.54% 15.60%(3)

RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets........................... 1.42%(3) 1.41% 1.41% 1.34% 1.12%(3)
Ratio of net investment income
to average net assets........................................... 4.79%(3) 4.77% 5.13% 4.91% 4.87%(3)
Decrease reflected in above expense ratios
due to undertakings by the Manager.............................. -- -- .01% .09% .12%(3)
Portfolio Turnover Rate........................................... 34.58%(4) 54.37% 50.62% 20.84% 33.18%
Net Assets, end of period (000's Omitted)......................... $26,606 $27,023 $25,282 $22,476 $5,916

<FN>
- -------------------
(1) From January 15, 1993 (commencement of initial offering) to April 30, 1993.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
</FN>
</TABLE>

See notes to financial statements.

<PAGE>
Premier State Municipal Bond Fund, Florida Series
- ----------------------------------------------------
Financial Highlights (continued)

Contained below is per share operating performance data for a share
of Beneficial Interest outstanding, total investment return, ratios to
average net assets and other supplemental data for each period indicated.
This information has been derived from the Fund's financial statements.

Class C Shares
---------------------------------------
Six Months Ended
October 31, 1996 Year Ended
PER SHARE DATA: (Unaudited) April 30, 1996(1)
---------------- -----------------
<S> <C> <C>
Net asset value, beginning of period.......................... $14.47 $14.65
------ ------
Investment Operations:
Investment income--net........................................ .33 .48
Net realized and unrealized gain (loss)
on investments.............................................. .19 .02
------ ------
Total from Investment Operations.............................. .52 .50
------ ------

Distributions:
Dividends from investment income--net......................... (.33) (.48)
Dividends from net realized gain on investments............... -- (.20)
------ ------
Total Distributions........................................... (.33) (.68)
------ ------
Net asset value, end of period................................ $14.66 $14.47
------ ------
------ ------
TOTAL INVESTMENT RETURN(2)...................................... 7.28%(3) 4.69%(3)

RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets....................... 1.92%(3) 1.99%(3)
Ratio of net investment income
to average net assets....................................... 4.92%(3) 4.20%(3)
Portfolio Turnover Rate....................................... 34.58%(4) 54.37%
Net Assets, end of period (000's Omitted)..................... $57 $35

<FN>
- ------------------
(1) From August 15, 1995 (commencement of initial offering) to April 30, 1996.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
</FN>
</TABLE>
See notes to financial statements.

<PAGE>
Premier State Municipal Bond Fund, Florida Series
- --------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1--Significant Accounting Policies:

Premier State Municipal Bond Fund (the "Trust") is registered under the
Investment Company Act of 1940 ("Act") as a non-diversified open-end management
investment company and operates as a series company currently offering twelve
series including the Florida Series (the "Fund"). The Fund's investment
objective is to maximize current income exempt from Federal and, where
applicable, from State income taxes, without undue risk. The Dreyfus
Corporation ("Manager") serves as the Fund's investment adviser. The Manager is
a direct subsidiary of Mellon Bank, N.A.

On October 31, 1996, the Board of Trustees approved an Agreement and
Plan of Reorganization providing for the transfer of all or substantially all
of the assets and liabilities of Premier Insured Municipal Bond Fund, Florida
Series to the Fund in a tax free exchange for shares of the Fund at net asset
value and the assumption of stated liabilities (the "Exchange"). The Exchange
is subject to the approval of Premier Insured Municipal Bond Fund, Florida
Series shareholders.

(b) Securities transactions and investment income: Securities transactions
are recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Interest income,
adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual basis.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date.

The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations held
by the Fund.

(c) Dividends to shareholders: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to comply
with the distribution requirements of the Internal Revenue Code. To the extent
that net realized capital gain can be offset by capital loss carryovers, if any,
it is the policy of the Fund not to distribute such gain.

NOTE 2--Management Fee and Other Transactions With Affiliates:

(a) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .55 of 1% of the value of
the Fund's average daily net assets and is payable monthly. The Agreement
provides that if in any full fiscal year the aggregate expenses, exclusive of
taxes, brokerage, interest on borrowings and extraordinary expenses, exceed the
expense limitation of any state having jurisdiction over the Fund, the Fund may
deduct from payments to be made to the Manager, or the Manager will bear the
amount of such excess to the extent required by state law. There was no expense
reimbursement during the period ended October 31, 1996.

Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager,
retained $738 during the period ended October 31, 1996, from commissions
earned on sales of the Fund's shares.

(b) Under the Distribution Plan adopted pursuant to Rule 12b-1 under
the Act, the Fund pays the Distributor for distributing the Fund's Class B and
Class C shares at an annual rate of .50 of 1% of the value of the average daily
net assets of Class B shares and .75 of 1% of the value of the average daily
net assets of Class C shares. During the period ended October 31, 1996,
$67,055 was charged to the Fund for the Class B shares and $162 was charged to
the Fund for the Class C shares.

(c) Under the Shareholder Services Plan, the Fund pays the Distributor at
an annual rate of .25 of 1% of the value of the average daily net assets of
Class A, Class B and Class C shares for the provision of certain services. The
services provided may include personal services relating to shareholder
accounts, such as answering shareholder inquiries regarding the Fund and
providing reports and other information, and services related to the maintenance
of shareholder accounts. The Distributor may make payments to Service Agents (a
securities dealer, financial institution or other industry professional) in
respect of these services. The Distributor determines the amounts to be paid to
Service Agents. During the period ended October 31, 1996, $277,861, $33,528 and
$54 were charged to Class A, B and C shares, respectively, by the Distributor
pursuant to the Shareholder Services Plan.

<PAGE>
Premier State Municipal Bond Fund, Florida Series
- --------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)

The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
the Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. Such compensation
amounted to $49,847 during the period ended October 31, 1996.

(d) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Trust an annual fee of $2,500 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.

NOTE 3--Securities Transactions:

The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended October 31, 1996
amounted to $84,644,031 and $91,071,356, respectively.

At October 31, 1996, accumulated net unrealized appreciation on
investments was $8,568,567, consisting of $10,036,468 gross unrealized
appreciation and $1,467,901 gross unrealized depreciation.

At October 31, 1996, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).

<PAGE>
Premier State Municipal
Bond Fund, Florida Series
200 Park Avenue
New York, NY 10166

Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166

Custodian
The Bank of New York
90 Washington Street
New York, NY 10286

Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 051/615SA9610
<PAGE>

PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
LETTER TO SHAREHOLDERS
Dear Shareholder:

We are pleased to provide you with this report on the Premier State
Municipal Bond Fund - Georgia Series. For its semi-annual reporting period ended
October 31, 1996, your Series produced a total return of 4.69% for Class A
shares, 4.43% for Class B shares and 4.28% for Class C shares.* Income dividends
exempt from Federal and Georgia State personal income taxes of approximately
$.315 for Class A shares, $.282 for Class B shares and $.262 for Class C shares
were paid.** This amounts to an annualized tax-free distribution rate per share
of 4.47%, 4.19% and 3.90% for Class A, Class B and Class C shares,
respectively.***

THE ECONOMY

The fear of another round of monetary tightening by the Federal Reserve
Board ("the Fed") to ward off a resurgence in inflation has so far proven
unwarranted. Indeed, despite solid economic growth resulting in the creation of
new jobs and an overall tightening in the labor market, inflation has remained
subdued. Both the Consumer and Producer Price Indexes remained at annual rates
in the 3% range. This is the fifth consecutive year of inflation under 3%, the
longest period since the 1960s. Despite the duration of the economic recovery,
most economic reports underscore the tepid nature of the present inflationary
environment.

The increase in long-term interest rates early this year may have
contributed to the recently reported slowdown in the rate of economic growth.
During the third quarter, the growth rate of Gross Domestic Product cooled to
2.2%, less than half the second quarter's strong 4.7% pace. Consumers - the
initiators of two thirds of all economic activity - remained cautious throughout
the year. In the third quarter, the pace of consumer spending was at its slowest
in five years. Consumer borrowing has also declined from year-ago levels. Not
surprisingly, retail sales growth has also been modest this year. Consumers may
have been restrained by wages not rising as rapidly as had been previously
suspected, given the strength in the labor market. The Employment Cost Index,
considered to be an important gauge of wage inflation by Federal Reserve Board
Chairman Alan Greenspan, rose just .6% in the third quarter, the lowest reading
in over a year. This brought the growth in wages to 2.8% over the past twelve
months, slightly less than the rate of inflation as measured by the Consumer
Price Index.

The booming housing market also seems to have cooled, with both new housing
starts and existing home sales slackening since midyear. Industrial production
has slowed somewhat from its more rapid pace earlier in the year. Given the
level of capacity utilization, there appears to be no sign of production
bottlenecks that could push prices higher. Anecdotal evidence still supports the
assertion that corporations are reluctant to raise prices. The report that the
1996 Federal budget deficit had shrunk to $107.3 billion - its lowest level in
two decades - provided another favorable sign for inflation. The final reading
of the 1996 deficit marks the fourth straight decline from fiscal 1992's record
$290.4 billion.

MARKET ENVIRONMENT

During the last six months, the bond market corrected nearly 100 basis
points with most of the upward momentum realized in the last quarter. The
30-year U.S. Treasury bond fluctuated around the 7% level until mid-October when
the market established a new trading range as the Treasury bond market rallied
to 6.45%. The municipal market was able to stabilize aided by strong retail
support reflected in strengthening demand for municipal bonds.

Continued strength in the fixed income market reflects continued optimism
that the Federal Reserve Board's Open Market Committee could potentially ease
credit in response to weakening economic data. The new lower rates have brought
many issuers back into the municipal market. Recently, $10 billion in new supply
had caused municipal bond prices to cheapen relative to taxable bonds. The
increase in yields reversed the trend of outperformance by the municipal market
that has characterized most of 1996.

THE PORTFOLIO

Since March 1996 we have held steadfast in our decision to purchase more
discount bonds for the Series. Unfortunately, the Georgia market offered little
in the way of new issues during the period. At the same time, the municipal
market had its fair share of turbulence, which placed our slightly defensive
posture in a positive light by way of emphasizing income. We felt, however, that
attempting to anticipate the turns in the market would be disastrous. As a
result, we charted our course and faithfully stayed with a relatively long
duration as a way to aid performance.

To achieve this goal, the Series sold current coupon holdings and short call
bonds. This strategy allowed the Series to take profits as retail demand
supported the municipal market. Having accomplished this goal, despite a
dwindling supply of bonds in the marketplace, the Series' performance improved.

We will continue to manage the Series with this strategy in mind as we move
forward. The market is not offering any concrete signs to us that a downturn may
be imminent. In fact, we anticipate the market demonstrating more stable
characteristics through year-end.

Our primary tasks - to earn a high level of current income to the extent
consistent with the preservation of capital, while maintaining the highest
levels of credit quality - continue to guide our portfolio management decisions.
Included in this report is a series of detailed statements about your
Series' holdings and its financial condition. We hope they are informative.
Please know that we greatly appreciate your continued confidence in the Fund and
in The Dreyfus Corporation.

Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
November 15, 1996 New York, N.Y.

**Some income may be subject to the Federal Alternative Minimum Tax (AMT)
for certain shareholders. Income may be subject to some State and local taxes
for non-Georgia residents.

*** Distribution rate per share is based upon dividends per share paid from
net investment income during the period (annualized), divided by the maximum
offering price, in the case of Class A shares, or the net asset value per share,
in the case of Class B and Class C shares, at the end of the period.

PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
STATEMENT OF INVESTMENTS OCTOBER 31, 1996 (UNAUDITED)
Principal
Long-Term Municipal Investments-98.2% Amount Value
------ ------
<S> <C> <C>

Albany, Sewer System Revenue 6.50%, 7/1/2009 (Insured; MBIA)................ $ 100,000 $ 109,007
Atlanta:
Airport Facilities Revenue:
5.25%, 1/1/2010 (Insured; AMBAC)........................................ 2,000,000 1,969,060
6%, 1/1/2014 (Insured; AMBAC)........................................... 1,000,000 1,015,750
COP (Atlanta Pretrial Detention Center Project) 6.25%, 12/1/2011 (Insured; MBIA) 300,000 318,828
GO 6.10%, 12/1/2019....................................................... 1,000,000 1,037,680
Barrow County School District 5.60%, 2/1/2015 (Insured; MBIA)............... 1,000,000 999,340
Bartow County, Water and Sewer Revenue, Refunding 6%, 9/1/2015 (Insured; AMBAC) 450,000 462,537
Clayton County and Clayton County Water Authority, Water and Sewer Revenue,
Refunding
5.60%, 5/1/2013 (Insured; AMBAC).......................................... 1,200,000 1,213,284
Colquitt County Hospital Authority, Refunding 5.50%, 3/1/2010............... 1,000,000 982,980
Columbus, Water and Sewer Revenue, Refunding:
5.40%, 6/1/2011 (Insured; AMBAC) (a)...................................... 750,000 747,788
5.70%, 5/1/2020........................................................... 500,000 498,395
Columbus Hospital Authority, Revenue Certificates (Saint Francis Hospital)
6.20%, 1/1/2010 (Insured; MBIA)........................................... 200,000 208,950
Coweta County School System 6.35%, 8/1/2012................................. 100,000 105,327
Dekalb County Development Authority, Revenue :
Refunding (Emory University Project) 5.25%, 11/1/2015..................... 1,000,000 978,250
(Wesley Homes, Inc-Budd Terrace Project)
6.75%, 10/1/2013 (LOC; Wachovia Bank of Georgia, N.A.) (b).............. 200,000 210,100
Fayette County School District 6.125%, 3/1/2015............................. 500,000 522,160
Fulton County, Water and Sewer Revenue, Refunding 6.375%, 1/1/2014 (Insured; FGIC) 290,000 322,912
Fulton County Building Authority, Revenue, Refunding
(County Government and Health Facilities Project) 6.125%, 1/1/2011........ 300,000 314,589
Fulton County Development Authority, Special Facilities Revenue, Refunding
(Delta Air Lines Inc. Project) 6.95%, 11/1/2012........................... 245,000 261,618
Gainesville, Water and Sewer Revenue, Refunding 6%, 11/15/2012 (Insured; FGIC) 300,000 321,987
Georgia, GO:
6.65%, 3/1/2009........................................................... 1,000,000 1,137,070
5.65%, 3/1/2012........................................................... 1,000,000 1,031,780
Georgia Housing and Finance Authority, SFMR :
7%, 12/1/2015 (Insured; FSA).............................................. 1,500,000 1,584,255
6.50%, 12/1/2017 (Insured; FSA)........................................... 1,000,000 1,024,990
Georgia Municipal Electric Authority, Power Revenue, Refunding:
5.50%, 1/1/2012........................................................... 1,000,000 990,790
6.125%, 1/1/2014 (Insured; FGIC).......................................... 300,000 311,976
Georgia Municipal Gas Authority, Gas Revenue (Warner Robins Project)
5.80%, 11/1/2015 (Insured; MBIA).......................................... 1,000,000 1,010,970
Glynn-Brunswick Memorial Hospital Authority (Southeast Georgia Health)
5.25%, 8/1/2013 (Insured; MBIA)........................................... 2,000,000 1,925,440
</TABLE>

PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1996 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
------ ------
<S> <C> <C>

Hancock County, Various Purpose Asset Guaranty 6.70%, 4/1/2015.............. $ 1,000,000 $ 1,096,830
Marietta Development Authority, Revenue (First Mortgage-Life College)
5.75%, 9/1/2014 (Insured; CGIC) (c)....................................... 850,000 857,769
Metropolitan Atlanta Rapid Transportation Authority, Sales Tax Revenue,
Refunding
6.25%, 7/1/2020 (Insured; AMBAC).......................................... 300,000 331,461
Private Colleges and Universities Authority, Revenue, Refunding
(Spellman College Project) 6.20%, 6/1/2014 (Insured; FGIC)................ 1,000,000 1,060,340
Roswell, GO 5.65%, 2/1/2011................................................. 1,000,000 1,023,900
Smyrna Hospital Authority, Revenue (Adventist Hospital Smyrna Project)
5.50%, 8/1/2026 (Insured; AMBAC).......................................... 1,000,000 980,530
------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $26,060,734).................... $26,968,643
======
Short-Term Municipal Investments-1.8%
U.S. Related:
Puerto Rico Electric Power Authority, 3.25% (d) (cost $500,000)............. $ 500,000 $ 500,000
======
TOTAL INVESTMENTS-100.0% (cost $26,560,734)................................. $27,468,643
======
</TABLE>

Summary of Abbreviations
AMBAC American Municipal Bond Assurance Corporation GO General Obligation
CGIC Capital Guaranty Insurance Company LOC Letter of Credit
COP Certificate of Participation MBIA Municipal Bond Investors Assurance
FGIC Financial Guaranty Insurance Company Insurance Corporation
FSA Financial Security Assurance SFMR Single Family Mortgage Revenue
</TABLE>

Summary of Combined Ratings
Fitch (e) or Moody's or Standard & Poor's Percentage of Value
- ---- ---- --------- ----------
<S> <C> <C> <C>

AAA Aaa AAA 64.9%
AA Aa AA 28.3
A A A 5.8
BB Ba BB 1.0
----
100.0%
====
</TABLE>

Notes to Statement of Investments:
(a) Purchased on a when-issued basis.
(b) Secured by letters of credit.
(c) Wholly held by the custodian as collateral for when-issued security.
(d) Inverse floater security-the interest rate is subject to change
periodically.
(e) Fitch currently provides creditworthiness information for a limited
number of investments.

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
Cost Value
------- ------

ASSETS: Investments in securities-See Statement of Investments $26,560,734 $27,468,643
Cash....................................... 144,291
Receivable for shares of Beneficial Interest subscribed 484,021
Interest receivable........................ 5,084
Prepaid expenses........................... 1,858
-------
28,103,897
-------
LIABILITIES: Due to The Dreyfus Corporation and affiliates 13,744
Due to Distributor......................... 13,985
Payable for investment securities purchased 747,473
Payable for shares of Beneficial Interest redeemed 11,623
Accrued expenses........................... 23,926
-------
810,751
-------
NET ASSETS.................................................................. $27,293,146
=======
REPRESENTED BY: Paid-in capital............................ $27,088,790
Accumulated net realized gain (loss) on investments (703,553)
Accumulated net unrealized appreciation (depreciation)
on investments-Note 3...................... 907,909
-------
NET ASSETS.................................................................. $27,293,146
=======
NET ASSET VALUE PER SHARE
-----------------
</TABLE>

Class A Class B Class C
------- ------- -------

Net Assets.................................................. $ 7,862,394 $19,329,085 $101,667
Shares Outstanding.......................................... 589,194 1,448,052 7,620
NET ASSET VALUE PER SHARE................................... $13.34 $13.35 $13.34
==== ==== ====
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
STATEMENT OF OPERATIONS SIX MONTHS ENDED OCTOBER 31, 1996 (UNAUDITED)
INVESTMENT INCOME

INCOME Interest Income............................ $ 790,980
EXPENSES: Management fee-Note 2(a)................... $ 75,756
Distribution fees-Note 2(b)................ 48,961
Shareholder servicing costs-Note 2(c)...... 43,936
Audit fees................................. 2,850
Prospectus and shareholders' reports....... 2,526
Custodian fees............................. 1,763
Legal fees................................. 1,649
Registration fees.......................... 891
Trustees' fees and expenses-Note 2(d)...... 142
Miscellaneous.............................. 5,705
-----
Total Expenses......................... 184,179
------
INVESTMENT INCOME-NET....................................................... 606,801
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 3:
Net realized gain (loss) on investments.... $ 30,382
Net unrealized appreciation (depreciation) on investments 574,369
-----
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 604,751
------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $1,211,552
======

</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months Ended
October 31, 1996 Year Ended
(Unaudited) April 30, 1996
--------- -------
OPERATIONS:
<S> <C> <C>

Investment income-net.................................................... $ 606,801 $ 1,353,288
Net realized gain (loss) on investments.................................. 30,382 (205,254)
Net unrealized appreciation (depreciation) on investments................ 574,369 774,119
------ ------
Net Increase (Decrease) in Net Assets Resulting from Operations...... 1,211,552 1,922,153
------ ------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net:
Class A shares......................................................... (190,830) (443,972)
Class B shares......................................................... (414,129) (908,818)
Class C shares......................................................... (1,842) (498)
------ ------
Total Dividends...................................................... (606,801) (1,353,288)
------ ------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares......................................................... 44,191 326,483
Class B shares......................................................... 533,782 2,305,085
Class C shares......................................................... 10,038 88,634
Dividends reinvested:
Class A shares......................................................... 141,580 316,447
Class B shares......................................................... 201,923 438,970
Class C shares......................................................... 1,779 498
Cost of shares redeemed:
Class A shares......................................................... (846,131) (1,482,789)
Class B shares......................................................... (1,938,664) (2,436,019)
------ ------
Increase (Decrease) in Net Assets from Beneficial Interest Transactions (1,851,502) (442,691)
------ ------
Total Increase (Decrease) in Net Assets............................ (1,246,751) 126,174
NET ASSETS:
Beginning of Period...................................................... 28,539,897 28,413,723
------ ------
End of Period............................................................ $27,293,146 $28,539,897
====== ======

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Shares

--------------------------------------
Six Months Ended
October 31, 1996 Year Ended
(Unaudited) April 30, 1996
--------- -------
CAPITAL SHARE TRANSACTIONS:
Class A
----
Shares sold.......................................................... 3,374 24,765
Shares issued for dividends reinvested............................... 10,759 23,848
Shares redeemed...................................................... (64,401) (111,113)
---- ----
Net Increase (Decrease) in Shares Outstanding (50,268) (62,500)
==== ====
Class B
----
Shares sold.......................................................... 40,587 173,357
Shares issued for dividends reinvested............................... 15,341 33,082
Shares redeemed...................................................... (147,846) (183,789)
---- ----
Net Increase (Decrease) in Shares Outstanding (91,918) 22,650
==== ====
Class C*
----
Shares sold.......................................................... 762 6,685
Shares issued for dividends reinvested............................... 135 38
---- ----
Net Increase (Decrease) in Shares Outstanding 897 6,723
==== ====
*From August 15, 1995 (commencement of initial offering) to April 30, 1996.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
FINANCIAL HIGHLIGHTS

Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.

Class A Shares
---------------------------------------------------
Six Months Ended
October 31, 1996 Year Ended April 30,
----------------------------------------
PER SHARE DATA: (Unaudited) 1996 1995 1994 1993(1)
-------- --- --- --- ---

Net asset value, beginning of period........ $13.05 $12.80 $12.69 $13.27 $12.50
---- ---- ---- ---- ----
Investment Operations:
Investment income-net....................... .32 .66 .73 .73 .51
Net realized and unrealized gain (loss)
on investments............................ .29 .25 .11 (.58) .77
---- ---- ---- ---- ----
Total from Investment Operations............ .61 .91 .84 .15 1.28
---- ---- ---- ---- ----
Distributions:
Dividends from investment income-net........ (.32) (.66) (.73) (.73) (.51)
---- ---- ---- ---- ----
Net asset value, end of period.............. $13.34 $13.05 $12.80 $12.69 $13.27
==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN(2)...................... 9.30%(3) 7.14% 6.87% .97% 15.91%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets..... .99%(3) .74% .25% .07% .-
Ratio of net investment income
to average net assets..................... 4.81%(3) 5.00% 5.80% 5.41% 5.55%(3)
Decrease reflected in above expense ratios
due to undertakings by the Manager........ .- .21% .78% 1.02% 1.46%(3)
Portfolio Turnover Rate..................... 32.46%(4) 33.09% 34.04% 6.76% 37.79%(4)
Net Assets, end of period (000's Omitted)... $7,862 $8,346 $8,985 $10,058 $7,304
(1) From September 3, 1992 (commencement of initial offering) to April 30, 1993.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.

</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.

Class B Shares
---------------------------------------------------
Six Months Ended
October 31, 1996 Year Ended April 30,
----------------------------------------
PER SHARE DATA: (Unaudited) 1996 1995 1994 1993(1)
-------- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>

Net asset value, beginning of period........ $13.06 $12.80 $12.69 $13.27 $12.71
---- ---- ---- ---- ----
Investment Operations:
Investment income-net....................... .28 .59 .66 .67 .20
Net realized and unrealized gain (loss)
on investments............................ .29 .26 .11 (.58) .56
---- ---- ---- ---- ----
Total from Investment Operations............ .57 .85 .77 .09 .76
---- ---- ---- ---- ----
Distributions:
Dividends from investment income-net........ (.28) (.59) (.66) (.67) (.20)
---- ---- ---- ---- ----
Net asset value, end of period.............. $13.35 $13.06 $12.80 $12.69 $13.27
==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN(2)...................... 8.79%(3) 6.69% 6.33% .46% 20.66%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets..... 1.48%(3) 1.24% .75% .58% .50%(3)
Ratio of net investment income
to average net assets.................... 4.26%(3) 4.46% 5.27% 4.85% 4.60%(3)
Decrease reflected in above expense ratios
due to undertakings by the Manager........ .- .20% .80% 1.02% 1.37%(3)
Portfolio Turnover Rate..................... 32.46%(4) 33.09% 34.04% 6.76% 37.79%(4)
Net Assets, end of period (000's Omitted)... $19,329 $20,106 $19,429 $16,243 $6,319
(1) From January 15, 1993 (commencement of initial offering) to April 30, 1993.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.

</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

Class C Shares
------------------------------------
Six Months Ended
October 31, 1996 Year Ended

PER SHARE DATA: (Unaudited) April 30, 1996(1)
--------- --------

Net asset value, beginning of period................................ $13.05 $12.85
--- ---
Investment Operations:
Investment income-net............................................... .26 .38
Net realized and unrealized gain (loss)
on investments.................................................... .29 .20
--- ---
Total from Investment Operations.................................... .55 .58
--- ---
Distributions:
Dividends from investment income-net................................ (.26) (.38)
--- ---
Net asset value, end of period...................................... $13.34 $13.05
=== ===
TOTAL INVESTMENT RETURN(2).............................................. 8.49%(3) 6.28%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............................. 1.81%(3) 1.98%(3)
Ratio of net investment income
to average net assets............................................. 3.95%(3) 3.73%(3)
Portfolio Turnover Rate............................................. 32.46%(4) 33.09%
Net Assets, end of period (000's Omitted)........................... $102 $88
(1) From August 15, 1995 (commencement of initial offering) to April 30, 1996.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.

</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES NOTES TO FINANCIAL STATEMENTS
(UNAUDITED) NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:

Premier State Municipal Bond Fund (the "Trust") is registered under the
Investment Company Act of 1940 ("Act") as a non-diversified open-end management
investment company and operates as a series company currently offering twelve
series including the Georgia Series (the "Fund"). The Fund's investment
objective is to maximize current income exempt from Federal and, where
applicable, from State income taxes, without undue risk. The Dreyfus Corporation
("Manager") serves as the Fund's investment adviser. The Manager is a direct
subsidiary of Mellon Bank, N.A.

Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares. The Fund is authorized to issue an unlimited
number of $.001 par value shares in the following classes of shares: Class A,
Class B and Class C. Class A shares are subject to a sales charge imposed at the
time of purchase, Class B shares are subject to a contingent deferred sales
charge imposed at the time of redemption on redemptions made within six years of
purchase and Class C shares are subject to a contingent deferred sales charge
imposed at the time of redemption on redemptions made within one year of
purchase. Other differences between the three Classes include the services
offered to and the expenses borne by each Class and certain voting rights.

The Trust accounts separately for the assets, liabilities and operations of
each fund. Expenses directly attributable to each fund are charged to that
fund's operations; expenses which are applicable to all funds are allocated
among them on a pro rata basis.

The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.

(A) PORTFOLIO VALUATION: The Fund's investments (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service ("Service") approved by the Board
of Trustees. Investments for which quoted bid prices are readily available and
are representative of the bid side of the market in the judgment of the Service
are valued at the mean between the quoted bid prices (as obtained by the Service
from dealers in such securities) and asked prices (as calculated by the Service
based upon its evaluation of the market for such securities). Other investments
(which constitute a majority of the portfolio securities) are carried at fair
value as determined by the Service, based on methods which include consideration
of: yields or prices of municipal securities of comparable quality, coupon,
maturity and type; indications as to values from dealers; and general market
conditions. Options and financial futures on municipal and U.S. treasury
securities are valued at the last sales price on the securities exchange on
which such securities are primarily traded or at the last sales price on the
national securities market on each business day. Investments not listed on an
exchange or the national securities market, or securities for which there were
no transactions, are valued at the average of the most recent bid and asked
prices. Bid price is used when no asked price is available.

(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions
are recorded on a trade date basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Interest income,
adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual basis.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date.

The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations held
by the Fund.

PREMIER STATE MUNICIPAL BOND FUND, GEORGIA SERIES NOTES TO FINANCIAL
STATEMENTS (UNAUDITED) (CONTINUED) (C) DIVIDENDS TO SHAREHOLDERS: It is the
policy of the Fund to declare dividends daily from investment income-net. Such
dividends are paid monthly. Dividends from net realized capital gain are
normally declared and paid annually, but the Fund may make distributions on a
more frequent basis to comply with the distribution requirements of the Internal
Revenue Code. To the extent that net realized capital gain can be offset by
capital loss carryovers, it is the policy of the Fund not to distribute such
gain. (D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal Revenue
Code, and to make distributions of income and net realized capital gain
sufficient to relieve it from substantially all Federal income and excise taxes.
The Fund has an unused capital loss carryover of approximately $648,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to April 30, 1996. The carryover
does not include net realized securities losses from November 1, 1995 through
April 30, 1996 which are treated, for Federal income tax purposes, as arising in
fiscal 1997. If not applied, $14,625 of the carryover express in fiscal 2002,
$366,375 of the carryover expires in fiscal 2003 and $267,000 of the carryover
expires in fiscal 2004. NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH
AFFILIATES: (A) Pursuant to a management agreement ("Agreement") with the
Manager, the management fee is computed at the annual rate of .55 of 1% of the
value of the Funds' average daily net assets and is payable monthly. The
Agreement provides that if in any full fiscal year the aggregate expenses,
exclusive of taxes, brokerage, interest on borrowings and extraordinary
expenses, exceed the expense limitation of any state having jurisdiction over
the Fund, the Fund may deduct from payments to be made to the Manager, or the
Manager will bear the amount of such excess to the extent required by state law.
However, the Manager has undertaken from May 1, 1996 through April 30, 1997 to
reduce the management fee or reimburse such excess expenses paid by the Fund, to
the extent that the Fund's aggregate annual expenses (excluding 12b-1
distribution plan fees and certain expenses as described above) exceed an annual
rate of 1.25% of the value of the Fund's average daily net assets. There was no
expense reimbursement during the period ended October 31, 1996. The undertaking
may be extended, modified or terminated by the Manager, provided that the
resulting expense reimbursement would not be less than the amount required
pursuant to the Agreement. Dreyfus Service Corporation, a wholly-owned
subsidiary of the Manager, retained $708 during the period ended October 31,
1996, from commissions earned on sales of the Fund's shares. (B) Under the
Distribution Plan adopted pursuant to Rule 12b-1 under the Act, the Fund pays
the Distributor for distributing the Fund's Class B and Class C shares at an
annual rate of .50 of 1% of the value of the average daily net assets of Class B
shares and .75 of 1% of the value of the average daily net assets of Class C
shares. During the period ended October 31, 1996, $48,611 was charged to the
Fund for the Class B shares and $350 was charged to the Fund for the Class C
shares. (C) Under the Shareholder Services Plan, the Fund pays the Distributor
at an annual rate of .25 of 1% of the value of the average daily net assets of
Class A, Class B and Class C shares for the provision of certain services. The
services provided may include personal services relating to shareholder
accounts, such as answering shareholder inquiries regarding the Fund and
providing reports and other information, and services related to the maintenance
of shareholder accounts. The Distributor may make payments to Service Agents (a
securities dealer, financial institution or other industry professional) in
respect of these services. The Distributor determines the amounts to be paid to
Service Agents. During the period ended October 31, 1996, $10,012, $24,306 and
$117 were charged to Class A, B and C shares, respectively, by the Distributor
pursuant to the Shareholder Services Plan. The Fund compensates Dreyfus
Transfer, Inc., a wholly-owned subsidiary of the Manager, under a transfer
agency agreement for providing personnel and facilities to perform transfer
agency services for the Fund. Such compensation amounted to $6,107 during the
six months ended October 31, 1996.

(D) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Trust an annual fee of $2,500 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.

NOTE 3-SECURITIES TRANSACTIONS: The aggregate amount of purchases and sales
of investment securities, excluding short-term securities, during the period
ended October 31, 1996 amounted to $8,973,485 and $10,628,120, respectively. At
October 31, 1996, accumulated net unrealized appreciation on investments was
$907,909, consisting of $911,226 gross unrealized appreciation and $3,317 gross
unrealized depreciation. At October 31, 1996, the cost of investments for
Federal income tax purposes was substantially the same as the cost for financial
reporting purposes (see the Statement of Investments).

PREMIER STATE MUNICIPAL
BOND FUND, GEORGIA SERIES
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN The Bank of New York 90 Washington Street New York, NY 10286 TRANSFER
AGENT & DIVIDEND DISBURSING AGENT Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940

Printed in U.S.A. 068/627SA9610
Semi-Annual Report
Premier State
Municipal Bond Fund
Georgia Series
October 31, 1996
[Dreyfus lion/2hres logo]
<PAGE>

PREMIER STATE MUNICIPAL BOND FUND, MASSACHUSETTS SERIES
LETTER TO SHAREHOLDERS

Dear Shareholders:

We are pleased to provide you with this report on the Premier State
Municipal Bond Fund - Massachusetts Series. For its semi-annual reporting period
ended October 31, 1996, your Series produced a total return of 5.11% for Class A
shares, 4.84% for Class B shares and 4.80% for Class C shares.* Income dividends
exempt from Federal and Massachusetts State personal income taxes of
approximately $.320 for Class A shares, $.290 for Class B shares and $.275 for
Class C shares were paid.** This amounts to an annualized tax-free distribution
rate per share of 5.15%, 4.89% and 4.64% for Class A, Class B and Class C
shares, respectively.***

THE ECONOMY

The fear of another round of monetary tightening by the Federal Reserve
Board ("the Feds") to ward off a resurgence in inflation has so far proved
unwarranted. Indeed, despite solid economic growth resulting in the creation of
new jobs and an overall tightening in the labor market, inflation has remained
subdued. Both the Consumer and Producer Price Indexes remained at annual rates
in the 3% range. This is the fifth consecutive year of inflation under 3%, the
longest period since the 1960s. Despite the duration of the economic recovery,
most economic reports underscore the tepid nature of the present inflationary
environment.

The increase in long-term interest rates early this year may have
contributed to the recently reported slowdown in the rate of economic growth.
During the third quarter, the growth rate of Gross Domestic Product cooled to
2.2%, less than half the second quarter's strong 4.7% pace. Consumers - the
initiators of two thirds of all economic activity - remained cautious throughout
the year. In the third quarter, the pace of consumer spending was at its slowest
in five years. Consumer borrowing has also declined from year-ago levels. Not
surprisingly, retail sales growth has also been modest this year. Consumers may
have been restrained by wages not rising as rapidly as had been previously
suspected, given the strength in the labor market. The Employment Cost Index,
considered to be an important gauge of wage inflation by Federal Reserve Board
Chairman Alan Greenspan, rose just .6% in the third quarter, the lowest reading
in over a year. This brought the growth in wages to 2.8% over the past twelve
months, slightly less than the rate of inflation as measured by the Consumer
Price Index.

The booming housing market also seems to have cooled with both new housing
starts and existing home sales slackening since midyear. Industrial production
has slowed somewhat from its more rapid pace earlier in the year. Given the
level of capacity utilization, there appears to be no sign of production
bottlenecks that could push prices higher. Anecdotal evidence still supports the
assertion that corporations are reluctant to raise prices. The report that the
1996 Federal budget deficit had shrunk to $107.3 billion - its lowest level in
two decades - provided another favorable sign for inflation. The final reading
of the 1996 deficit marks the fourth straight decline from fiscal 1992's record
$290.4 billion.

MARKET ENVIRONMENT

THEPORTFOLIO

The portfolio holds many high coupon bonds that help the Series derive most
of its total return from income. During this last six-month period we have
chosen to replace some existing holdings with either those that have better call
protection and coincidental upside price potential, or those with higher
liquidity features. On a security by security basis we have used these selection
criteria in analyzing the risk/return function of each bond purchased and sold.
Our criteria stress accomplishing these goals without compromising income or
losing sight of the portfolio in its totality. Currently, the duration (an
industry measurement of price responsiveness to changes in interest rates and
therefore price risk of the Series) is slightly longer, or more aggressive, than
it was at the time of our last letter, when it was slightly defensive overall
compared to other funds in our comparison group. As of the end of the reporting
period, the tax-exempt market was attractively valued compared to taxable fixed
income equivalents. We believe the current portfolio structure should serve the
portfolio well during a return to more conventional yield relationships or
through a repeated period of stabilization that we have experienced. Included in
this report is a series of detailed statements about the Series' holdings and
financial condition. We hope you find them informative and greatly appreciate
your support. Very truly yours,

[Richard J. Moynihan signature logo]

Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
November 15, 1996 New York, N.Y.

**Some income may be subject to the Federal Alternative Minimum Tax (AMT)
for certain shareholders. Income may be subject to some State and local taxes
for non-Massachusetts residents. Capital gain distributions may be subject to
Federal, State and local taxes.

PREMIER STATE MUNICIPAL BOND FUND, MASSACHUSETTS SERIES
STATEMENT OF INVESTMENTS OCTOBER 31, 1996 (UNAUDITED)

<S> <C> <C>
Principal
Long-Term Municipal Investments-100.0% Amount Value
-------- ---------
Massachusetts-72.2%
Boston Industrial Development Financing Authority, Sewer Facility Revenue
(Harbor Electric Energy Co. Project) 7.375%, 5/15/2015.................... $ 2,500,000 $ 2,689,175
Leominster 7.50%, 4/1/2009 (Insured; MBIA, Prerefunded 4/1/2000) (a)........ 1,275,000 1,422,275
Lynn Water and Sewer Commission, General Revenue
7.25%, 12/1/2010 (Insured; MBIA, Prerefunded 12/1/2000) (a)............... 1,000,000 1,123,550
Massachusetts Bay Transportation Authority:
6.933%, 3/1/2021 (Insured; MBIA) (b,c).................................... 2,300,000 2,145,325
7%, 3/1/2021.............................................................. 1,000,000 1,189,940
Massachusetts Commonwealth 7%, 8/1/2012 (Prerefunded 8/1/2001) (a).......... 1,850,000 2,076,014
Massachusetts Education Loan Authority, Education Loan Revenue
7.75%, 1/1/2008 (Insured; MBIA)........................................... 1,175,000 1,213,975
Massachusetts Health and Educational Facilities Authority, Revenue:
(Baystate Medical Center) 6%, 7/1/2026 (Insured; FSA)..................... 2,000,000 2,051,300
(Cooley Dickinson Hospital):
5.50%, 11/15/2018 (Insured; AMBAC)...................................... 3,500,000 3,397,730
5.50%, 11/15/2025 (Insured; AMBAC)...................................... 1,500,000 1,446,285
(Medical Center of Central Massachusetts) 7.10%, 7/1/2021................. 1,000,000 1,056,510
(New England Deaconess Hospital) 6.875%, 4/1/2022......................... 4,000,000 4,252,240
(Refunding - Milton Hospital) 7%, 7/1/2016 (Insured; MBIA)................ 2,050,000 2,236,796
(South Shore Hospital) 7.50%, 7/1/2020
(Insured; MBIA, Prerefunded 7/1/2000) (a)............................... 2,000,000 2,241,400
(University Hospital) 7.25%, 7/1/2019 (Insured; MBIA)..................... 2,750,000 3,013,698
Massachusetts Housing Finance Agency, SFHR:
7.80%, 12/1/2005.......................................................... 845,000 892,430
7.90%, 6/1/2014........................................................... 855,000 907,565
7.95%, 6/1/2023........................................................... 1,920,000 2,027,635
Massachusetts Industrial Finance Agency, Revenue:
(Provider Lease Program) 8.75%, 7/15/2009................................. 675,000 704,801
(Water Treatment - American Hingham) 6.95%, 12/1/2035..................... 3,000,000 3,058,260
Massachusetts Municipal Wholesale Electric Co., Power Supply Systems Revenue
6.125%, 7/1/2019.......................................................... 1,200,000 1,195,512
Massachusetts Port Authority, Special Project Revenue
(Harborside Hyatt) 10%, 3/1/2026.......................................... 3,000,000 3,366,090
Massachusetts Water Resources Authority:
5%, 12/1/2016 (Insured; MBIA)............................................. 3,000,000 2,806,740
5%, 12/1/2025 (Insured; MBIA)............................................. 5,400,000 4,933,656
South Essex Sewer District, Refunding 5.25%, 6/15/2024 (Insured; MBIA)...... 1,000,000 950,350

PREMIER STATE MUNICIPAL BOND FUND, MASSACHUSETTS SERIES
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1996 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
--------- ---------
U. S. Related-27.8%
Guam Airport Authority, Revenue 6.70%, 10/1/2023............................ $ 1,500,000 $ 1,544,985
Puerto Rico Commonwealth:
5.40%, 7/1/2025........................................................... 2,000,000 1,890,020
Puerto Rico Commonwealth (continued):
Public Improvement 6.80%, 7/1/2021 (Prerefunded 7/1/2002) (a)............. 1,000,000 1,129,520
Refunding:
6%, 7/1/2014............................................................ 2,000,000 2,024,900
5.375%, 7/1/2022 (Insured; MBIA)........................................ 2,500,000 2,458,775
Puerto Rico Commonwealth Highway and Transportation Authority,
Highway Revenue:
6.493%, 7/1/2009 (b).................................................... 1,000,000 947,500
6.593%, 7/1/2010 (b).................................................... 1,000,000 945,000
Puerto Rico Housing Finance Corporation, MFMR
7.50%, 4/1/2022 (LOC; Government Development Bank) (d).................... 3,355,000 3,548,047
Puerto Rico Ports Authority, Special Facilities Revenue
(American Airlines) 6.30%, 6/1/2023....................................... 1,500,000 1,515,735
Puerto Rico Public Buildings Authority,
Guaranteed Government Facilities Revenue 6.25%, 7/1/2015 (Insured; AMBAC). 1,100,000 1,212,431
Virgin Islands Public Finance Authority, Revenue, Refunding
7.25%, 10/1/2018.......................................................... 2,750,000 2,947,010
----------
TOTAL INVESTMENTS (cost $69,831,804)........................................ $72,563,175
=============
</TABLE>

PREMIER STATE MUNICIPAL BOND FUND, MASSACHUSETTS SERIES
<S> <C> <C> <C>

Summary of Abbreviations
AMBAC American Municipal Bond Assurance Corporation MBIA Municipal Bond Investors Assurance
FSA Financial Security Assurance Insurance Corporation
LOC Letter of Credit MFMR Multi-Family Mortgage Revenue
SFHR Single Family Housing Revenue
</TABLE>

Summary of Combined Ratings (Unaudited)
Fitch (e) or Moody's or Standard & Poor's Percentage of Value
- ------- ------ ----------------- ---------------------
<S> <C> <C> <C>

AAA Aaa AAA 46.5%
AA Aa AA 10.2
A A A 17.2
BBB Baa BBB 16.4
Not Rated (f) Not Rated (f) Not Rated (f) 9.7
-------
100.0%
=======
</TABLE>

Notes to Statement of Investments:

(b)Inverse floater security - the interest rate is subject to change
periodically.

(c)Security exempt from registration under Rule 144A of the Securities Act of
1933. This security may be resold in transactions exempt from registration,
normally to qualified institutional buyers. At October 31, 1996, this
security amounted to $2,145,325 or 2.9% of net assets.

(d)Secured by letter of credit.

(e)Fitch currently provides creditworthiness information for a limited
number of investments.

(f)Securities which, while not rated by Fitch, Moody's or Standard & Poor's
have been determined by the Manager to be of comparable quality to those
rated securities in which the Fund may invest.

(g)At October 31, 1996, 33.2% of the Fund's net assets are insured by MBIA.

(h)At October 31, 1996, the Fund had $18,639,448 (25.2% of net assets)
invested in securities whose payment of principal and interest is dependent
upon revenues generated from health care projects.

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, MASSACHUSETTS SERIES
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1996 (UNAUDITED)
Cost Value
---------- ----------
<S> <C> <C> <C>

ASSETS: Investments in securities-See Statement of Investments $69,831,804 $72,563,175
Cash....................................... 170,073
Interest receivable........................ 1,399,842
Receivable for shares of Beneficial Interest subscribed 12,896
Prepaid expenses........................... 2,677
----------
74,148,663
----------
LIABILITIES: Due to The Dreyfus Corporation and affiliates 34,586
Due to Distributor......................... 18,147
Payable for shares of Beneficial Interest redeemed 32,846
Accrued expenses........................... 22,148
----------
107,727
----------
NET ASSETS.................................................................. $74,040,936
=============
REPRESENTED BY: Paid-in capital............................ $69,687,183
Accumulated net realized gain (loss) on investments 1,622,382
Accumulated net unrealized appreciation
(depreciation) on investments-Note 3 ........ 2,731,371
----------
NET ASSETS.................................................................. $74,040,936
============
</TABLE>

NET ASSET VALUE PER SHARE
---------------------------

Class A Class B Class C
------------- ------------ -----------
<S> <C> <C> <C>

Net Assets.................................................... $68,249,380 $5,790,480 $1,076
Shares Outstanding............................................ 5,803,263 492,685 91.568
NET ASSET VALUE PER SHARE..................................... $11.76 $11.75 $11.75
====== ====== =======
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.
<S> <C> <C> <C>

PREMIER STATE MUNICIPAL BOND FUND, MASSACHUSETTS SERIES
STATEMENT OF OPERATIONS SIX MONTHS ENDED OCTOBER 31, 1996 (UNAUDITED)
INVESTMENT INCOME
INCOME Interest Income............................ $2,376,842
EXPENSES: Management fee-Note 2(a)................... $ 204,169
Shareholder servicing costs-Note 2(c)...... 119,169
Distribution fees-Note 2(b)................ 13,976
Professional fees.......................... 6,206
Custodian fees............................. 3,909
Prospectus and shareholders' reports....... 3,456
Registration fees.......................... 3,069
Trustees' fees and expenses-Note 2(d)...... 537
Miscellaneous.............................. 4,053
----------
Total Expenses......................... 358,544
----------
INVESTMENT INCOME-NET....................................................... 2,018,298
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 3:
Net realized gain (loss) on investments.... $ (61,878)
Net unrealized appreciation (depreciation)
on investments 1,734,999
----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 1,673,121
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $3,691,419
==========
</TABLE>
<TABLE>
<CAPTION>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, MASSACHUSETTS SERIES
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
October 31, 1996 Year Ended
(Unaudited) April 30, 1996
-------------- -------------
OPERATIONS:
<S> <C> <C>

Investment income-net............................................... $ 2,018,298 $ 4,274,002
Net realized gain (loss) on investments............................. (61,878) 2,354,880
Net unrealized appreciation (depreciation) on investments........... 1,734,999 (2,363,586)
-------------- -------------
Net Increase (Decrease) in Net Assets Resulting from Operations 3,691,419 4,265,296
-------------- -------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net:
Class A shares.................................................... (1,879,678) (4,029,063)
Class B shares.................................................... (138,596) (244,904)
Class C shares.................................................... (24) (35)
Net realized gain on investments:
Class A shares.................................................... __ (164,269)
Class B shares.................................................... __ (11,333)
Class C shares.................................................... __ (2)
-------------- -------------
Total Dividends............................................... (2,018,298) (4,449,606)
-------------- -------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares.................................................... 1,769,860 2,996,973
Class B shares.................................................... 729,810 1,256,028
Class C shares.................................................... __ 1,000
Dividends reinvested:
Class A shares.................................................... 1,011,347 2,291,472
Class B shares.................................................... 79,587 142,581
Class C shares.................................................... 25 37
Cost of shares redeemed:
Class A shares.................................................... (4,885,501) (9,062,697)
Class B shares.................................................... (404,977) (324,846)
-------------- -------------
Increase (Decrease) in Net Assets from Beneficial Interest Transactions (1,699,849) (2,699,452)
-------------- -------------
Total Increase (Decrease) in Net Assets..................... (26,728) (2,883,762)
NET ASSETS:
Beginning of Period................................................. 74,067,664 76,951,426
-------------- -------------
End of Period....................................................... $74,040,936 $74,067,664
============== ==============
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, MASSACHUSETTS SERIES
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Shares

-------------------------------------
Six Months Ended
October 31, 1996 Year Ended
(Unaudited) April 30, 1996
<S> <C> <C>
-------------- -------------
CAPITAL SHARE TRANSACTIONS:
Class A
--------
Shares sold.............................................................. 152,031 255,371
Shares issued for dividends reinvested................................... 87,063 194,345
Shares redeemed.......................................................... (421,246) (771,980)
-------------- -------------
Net Increase (Decrease) in Shares Outstanding (182,152) (322,264)
=============== ==============
Class B
--------
Shares sold.............................................................. 63,416 106,403
Shares issued for dividends reinvested................................... 6,853 12,098
Shares redeemed.......................................................... (34,931) (27,545)
-------------- -------------
Net Increase (Decrease) in Shares Outstanding 35,338 90,956
=============== ==============
Class C*
--------
Shares sold.............................................................. _ 86
Shares issued for dividends reinvested................................... 3 3
-------------- -------------
Net Increase (Decrease) in Shares Outstanding 3 89
=============== ==============
*From August 15, 1995 (commencement of initial offering) to April 30, 1996.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, MASSACHUSETTS SERIES
FINANCIAL HIGHLIGHTS

Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>

Class A Shares
-------------------------------------------------------------------------------
Six Months Ended
October 31, 1996 Year Ended April 30,
----------------------------------------------------------
PER SHARE DATA: (Unaudited) 1996 1995 1994 1993 1992
-------------- ----- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>

Net asset value, beginning of period.. $11.50 $11.53 $11.64 $12.13 $11.41 $11.05
------ ------ ------ ------ ------ ------
Investment Operations:
Investment income-net................. .32 .66 .69 .71 .73 .75
Net realized and unrealized gain (loss)
on investments...................... .26 .- (.06) (.44) .73 .36
------ ------ ------ ------ ------ ------
Total from Investment Operations...... .58 .66 .63 .27 1.46 1.11
------ ------ ------ ------ ------ ------
Distributions:
Dividends from investment income-net.. (.32) (.66) (.69) (.71) (.73) (.75)
Dividends from net realized gain on investments .- (.03) .- (.05) (.01) .-
Dividends in excess of net realized gain
on investments...................... .- .- (.05) .- .- .-
------ ------ ------ ------ ------ ------
Total Distributions................... (.32) (.69) (.74) (.76) (.74) (.75)
------ ------ ------ ------ ------ ------
Net asset value, end of period........ $11.76 $11.50 $11.53 $11.64 $12.13 $11.41
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN(1)................ 10.14%(2) 5.69% 5.72% 2.08% 13.14% 10.32%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .93%(2) .92% .94% .82% .69% .55%
Ratio of net investment income
to average net assets.............. 5.48%(2) 5.57% 6.04% 5.80% 6.16% 6.65%
Decrease reflected in above expense ratios
due to undertakings by the Manager.. .- - .01% .11% .24% .41%
Portfolio Turnover Rate............... 12.87%(3) 34.86% 13.62% 12.04% 11.36% 24.75%
Net Assets, end of period (000's Omitted) $68,249 $68,812 $72,731 $76,865 $79,701 $66,873
(1) Exclusive of sales load.
(2) Annualized.
(3) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>

PREMIER STATE MUNICIPAL BOND FUND, MASSACHUSETTS SERIES
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>

Class B Shares
----------------------------------------------------------------
Six Months Ended
October 31, 1996 Year Ended April 30,
----------------------------------------------
PER SHARE DATA: (Unaudited) 1996 1995 1994 1993(1)
----------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>

Net asset value, beginning of period......... $11.49 $11.52 $11.63 $12.13 $11.79
-------- ------- ------- ------- -------
Investment Operations:
Investment income-net........................ .29 .60 .63 .64 .19
Net realized and unrealized gain (loss)
on investments............................. .26 .- (.06) (.45) .34
-------- ------- ------- ------- -------
Total from Investment Operations............. .55 .60 .57 .19 .53
-------- ------- ------- ------- -------
Distributions:
Dividends from investment income-net......... (.29) (.60) (.63) (.64) (.19)
Dividends from net realized gain on investments .- (.03) .- (.05) .-
Dividends in excess of net realized gain on investments .- .- (.05) .- .-
-------- ------- ------- ------- -------
Total Distributions.......................... (.29) (.63) (.68) (.69) (.19)
-------- ------- ------- ------- -------
Net asset value, end of period............... $11.75 $11.49 $11.52 $11.63 $12.13
======= ======= ====== ======== ========
TOTAL INVESTMENT RETURN(2)....................... 9.60%(3) 5.15% 5.15% 1.44% 15.56%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... 1.44%(3) 1.43% 1.45% 1.36% 1.15%(3)
Ratio of net investment income
to average net assets...................... 4.96%(3) 5.03% 5.47% 5.18% 4.92%(3)
Decrease reflected in above expense ratios
due to undertakings by the Manager......... .- .- .01% .10% .13%(3)
Portfolio Turnover Rate...................... 12.87%(4) 34.86% 13.62% 12.04% 11.36%
Net Assets, end of period (000's Omitted).... $5,791 $5,255 $4,220 $3,702 $1,066
----------
(1) From January 15, 1993 (commencement of initial offering) to April 30, 1993.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
PREMIER STATE MUNICIPAL BOND FUND, MASSACHUSETTS SERIES
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
</TABLE>
<TABLE>
<CAPTION>

Class C Shares
--------------------------------------
Six Months Ended
October 31, 1996 Year Ended
PER SHARE DATA: (Unaudited) April 30, 1996(1)
--------- ----------------
<S> <C> <C>

Net asset value, beginning of period................................ $11.48 $11.59
-------- -------
Investment Operations:
Investment income-net............................................... .27 .40
Net realized and unrealized gain (loss)
on investments.................................................... .27 (.08)
-------- -------
Total from Investment Operations.................................... .54 .32
-------- -------
Distributions:
Dividends from investment income-net................................ (.27) (.40)
Dividends from net realized gain on investments..................... .- (.03)
-------- -------
Total Distributions................................................. (.27) (.43)
-------- -------
Net asset value, end of period...................................... $11.75 $11.48
======== =========
TOTAL INVESTMENT RETURN(2).............................................. 9.52%(3) 3.76%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............................. 1.65%(3) 1.69%(3)
Ratio of net investment income
to average net assets............................................. 4.66%(3) 4.72%(3)
Portfolio Turnover Rate............................................. 12.87%(4) 34.86%
Net Assets, end of period (000's Omitted)........................... $1 $1
(1) From August 15, 1995 (commencement of initial offering) to April 30, 1996.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, MASSACHUSETTS SERIES NOTES TO FINANCIAL
STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:

Premier State Municipal Bond Fund (the "Trust") is registered under the
Investment Company Act of 1940 ("Act") as a non-diversified open-end management
investment company and operates as a series company currently offering twelve
series including the Massachusetts Series (the "Fund"). The Fund's investment
objective is to maximize current income exempt from Federal and, where
applicable, from State income taxes, without undue risk. The Dreyfus Corporation
("Manager") serves as the Fund's investment adviser. The Manager is a direct
subsidiary of Mellon Bank, N.A.

Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares. The Fund is authorized to issue an unlimited
number of $.001 par value shares in the following classes of shares: Class A,
Class B and Class C. Class A shares are subject to a sales charge imposed at the
time of purchase, Class B shares are subject to a contingent deferred sales
charge imposed at the time of redemption on redemptions made within six years of
purchase and Class C shares are subject to a contingent deferred sales charge
imposed at the time of redemption on redemptions made within one year of
purchase. Other differences between the three Classes include the services
offered to and the expenses borne by each Class and certain voting rights.

The Trust accounts separately for the assets, liabilities and operations of
each fund. Expenses directly attributable to each fund are charged to that
fund's operations; expenses which are applicable to all funds are allocated
among them on a pro rata basis.

The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.

The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations held
by the Fund.

(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to comply
with the distribution requirements of the Internal Revenue Code. To the extent
that net realized capital gain can be offset by capital loss carryovers, if any,
it is the policy of the Fund not to distribute such gain.

(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal Revenue
Code, and to make distributions of income and net realized capital gain
sufficient to relieve it from substantially all Federal income and excise taxes.

NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:

(A) Pursuant to a management agreement ("Agreement") with the Manager, the
management fee is computed at the annual rate of .55 of 1% of the value of the
Funds' average daily net assets and is payable monthly. The Agreement provides
that if in any full fiscal year the aggregate expenses, exclusive of taxes,
brokerage, interest on borrowings and extraordinary expenses, exceed the expense
limitation of any state having jurisdiction over the Fund, the Fund may deduct
from payments to be made to the Manager, or the Manager will bear the amount of
such excess to the extent required by state law. There was no expense
reimbursement during the period ended October 31, 1996.

Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager,
retained $1,700 during the period ended October 31, 1996, from commissions
earned on sales of the Funds' shares.

(B) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the
Act, the Fund pays the Distributor for distributing the Fund's Class B and Class
C shares at an annual rate of .50 of 1% of the value of the average daily net
assets of Class B shares and .75 of 1% of the value of the average daily net
assets of Class C shares. During the period ended October 31, 1996, $13,972 was
charged to the Fund for the Class B shares and $4 was charged to the Fund for
the Class C shares.

(C) Under the Shareholder Services Plan, the Fund pays the Distributor at an
annual rate of .25 of 1% of the value of the average daily net assets of Class
A, Class B and Class C shares for the provision of certain services. The
services provided may include personal services relating to shareholder
accounts, such as answering shareholder inquiries regarding the Fund and
providing reports and other information, and services related to the maintenance
of shareholder accounts. The Distributor may make payments to Service Agents (a
securities dealer, financial institution or other industry professional) in
respect of these services. The Distributor determines the amounts to be paid to
Service Agents. During the period ended October 31, 1996, $85,817, $6,986 and $1
were charged to Class A, B and C shares, respectively, by the Distributor
pursuant to the Shareholder Services Plan.

The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
the Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. Such compensation
amounted to $16,160 during the period ended October 31, 1996.

The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended October 31, 1996
amounted to $10,106,313 and $9,288,965, respectively.

At October 31, 1996, accumulated net unrealized appreciation on investments
was $2,731,371, consisting of $3,224,539 gross unrealized appreciation and
$493,168 gross unrealized depreciation.

At October 31, 1996, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).

PREMIER STATE MUNICIPAL
BOND FUND, MASSACHUSETTS SERIES
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT & DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940

Printed in U.S.A. 063/622SA9610
Semi-Annual Report
Premier State
Municipal Bond Fund
Massachusetts Series
October 31, 1996
[lion2hres logo]
<PAGE>

PREMIER STATE MUNICIPAL BOND FUND, NORTH CAROLINA SERIES
LETTER TO SHAREHOLDERS
Dear Shareholder:

We are pleased to provide you with this report on the Premier State
Municipal Bond Fund - North Carolina Series. For its semi-annual reporting
period ended October 31, 1996, your Series produced a total return of 5.87% for
Class A shares, 5.60% for Class B shares and 5.38% for Class C shares.* Income
dividends exempt from Federal and North Carolina State personal income taxes of
approximately $.338 for Class A shares, $.305 for Class B shares and $.288 for
Class C shares were paid.** This amounts to an annualized tax-free distribution
rate per share of 4.81%, 4.54% and 4.29% for Class A, Class B and Class C
shares, respectively.***

THE ECONOMY

The increase in long-term interest rates early this year may have
contributed to the recently reported slowdown in the rate of economic growth.
During the third quarter, the growth rate of Gross Domestic Product cooled to
2.2%, less than half the second quarter's strong 4.7% pace. Consumers - the
initiators of two thirds of all economic activity - remained cautious throughout
the year. In the third quarter, the pace of consumer spending was at its slowest
in five years. Consumer borrowing has also declined from year-ago levels. Not
surprisingly, retail sales growth has also been modest this year. Consumers may
have been restrained by wages not rising as rapidly as had been previously
suspected, given the strength in the labor market. The Employment Cost Index,
considered to be an important gauge of wage inflation by Federal Reserve Board
Chairman Alan Greenspan, rose just .6% in the third quarter, the lowest reading
in over a year. This brought the growth in wages to 2.8% over the past twelve
months, slightly less than the rate of inflation as measured by the Consumer
Price Index.

The booming housing market also seems to have cooled with both new housing
starts and existing home sales slackening since midyear. Industrial production
has slowed somewhat from its more rapid pace earlier in the year. Given the
level of capacity utilization, there appears to be no sign of production
bottlenecks that could push prices higher. Anecdotal evidence still supports the
assertion that corporations are reluctant to raise prices. The report that the
1996 Federal budget deficit had shrunk to $107.3 billion - its lowest level in
two decades - provided another favorable sign for inflation. The final reading
of the 1996 deficit marks the fourth straight decline from fiscal 1992's record
$290.4 billion.

MARKET ENVIRONMENT

THE PORTFOLIO

The portfolio holds many high coupon bonds that help the Series derive most
of its total return from income. During this last six-month period we have
chosen to replace some existing holdings with either those that have better call
protection and coincidental upside price potential, or those with higher
liquidity features. On a security by security basis we have used these selection
criteria in analyzing the risk/return function of each bond purchased and sold.
Our criteria stress accomplishing these goals without compromising income or
losing sight of the portfolio in its totality. Currently, the duration (an
industry measurement of price responsiveness to changes in interest rates and
therefore price risk of the fund) is slightly longer, or more aggressive, than
it was at the time of our last letter, when it was slightly defensive overall
compared to other funds in our comparison group. The tax-exempt market currently
is attractively valued compared to taxable fixed income equivalents. The current
portfolio structure should serve the portfolio well during a return to more
conventional yield relationships or through a repeated period of stabilization
that we have experienced.

Included in this report is a series of detailed statements about the Series'
holdings and financial condition. We hope you find them informative and greatly
appreciate your support.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
November 15, 1996 New York, N.Y.

** Some income may be subject to the Federal Alternative Minimum Tax (AMT)
for certain shareholders. Income may be subject to some State and local taxes
for non-North Carolina residents.

PREMIER STATE MUNICIPAL BOND FUND, NORTH CAROLINA SERIES
STATEMENT OF INVESTMENTS OCTOBER 31, 1996 (UNAUDITED)
Principal
Long-Term Municipal Investments-100.0% Amount Value
------ ------
<S> <C> <C>

North Carolina-75.4%
Asheville, Water System Revenue 5.70%, 8/1/2025 (Insured; FGIC)............. $ 1,000,000 $ 993,600
Board of Governors of the University of North Carolina, HR
(University of North Carolina Hospitals at Chapel Hill):
5.25%, 2/15/2026........................................................ 2,500,000 2,345,525
5%, 2/15/2029........................................................... 4,000,000 3,596,560
Buncombe County Metropolitan Sewage District, Sewage System Revenue
6.75%, 7/1/2022 (Prerefunded 7/1/2002) (a)................................ 500,000 563,855
Charlotte - Mecklenberg Hospital Authority, Health Care System Revenue
5.75%, 1/15/2021.......................................................... 4,000,000 3,981,480
Haywood County, Environmental Improvement Revenue, Refunding
(Champion International Corp. Project) 6.25%, 9/1/2025.................... 2,000,000 2,022,220
Martin County Industrial Facilities and Pollution Control Financing
Authority,
Industrial Revenue (Solid Waste Disposal - Weyerhaeuser Company Project):
6.80%, 5/1/2024......................................................... 2,000,000 2,166,020
6%, 11/1/2025........................................................... 2,000,000 2,021,660
New Hanover County, HR (New Hanover Regional Medical Center Project)
5.75%, 10/1/2026 (Insured; AMBAC)......................................... 2,000,000 2,000,740
New Hanover County Industrial Facilities and Pollution Control Financing
Authority, SWDR
(Occidental Petroleum) 6.50%, 8/1/2014.................................... 1,000,000 1,030,800
North Carolina Eastern Municipal Power Agency, Power System Revenue:
5.75%, 12/1/2016.......................................................... 1,865,000 1,766,174
Refunding:
5.125%, 1/1/2012 (Insured; AMBAC)....................................... 3,000,000 2,880,570
5.875%, 1/1/2013........................................................ 4,000,000 3,901,920
6%, 1/1/2013............................................................ 2,500,000 2,457,900
6%, 1/1/2022............................................................ 1,000,000 985,220
North Carolina Educational Assistance Authority, Guaranteed Student Loan
Revenue
6.35%, 7/1/2016........................................................... 3,875,000 3,953,004
North Carolina Housing Finance Agency, Single Family Revenue:
6.10%, 9/1/2025 (Insured; FHA)............................................ 3,400,000 3,524,304
6.50%, 9/1/2026........................................................... 4,275,000 4,381,148
6.70%, 9/1/2026........................................................... 2,180,000 2,259,243
North Carolina Medical Care Commission, HR:
(Annie Penn Memorial Hospital Project) 7.50%, 8/15/2021................... 3,750,000 3,968,887
(Duke University Hospital Project) 7%, 6/1/2021 (Prerefunded 6/1/2001) (a) 1,500,000 1,681,125
North Carolina Municipal Power Agency Number 1, Catawba Electric Revenue:
5%, 1/1/2015 (Insured; MBIA).............................................. 1,000,000 933,690
5.75%, 1/1/2015 (Insured; MBIA)........................................... 3,750,000 3,758,325
5.375%, 1/1/2020 (Insured; AMBAC)......................................... 2,500,000 2,413,150
Pitt County, Health Hospital and Nursing Home Revenue, Refunding
(Pitt County Memorial Hospital) 5.25%, 12/1/2021.......................... 3,500,000 3,293,185
Shelby, Combined Enterprise System Revenue, Refunding 5.625%, 5/1/2014...... 1,000,000 997,790

PREMIER STATE MUNICIPAL BOND FUND, NORTH CAROLINA SERIES
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1996 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
------ ------
North Carolina (continued)
Wake County, Hospital System Revenue, Refunding:
Zero Coupon, 10/1/2010 (Insured; MBIA).................................... $ 2,200,000 $ 1,006,324
5.125%, 10/1/2026 (Insured; MBIA)......................................... 2,000,000 1,818,420
U.S. Related-24.6%
Guam Airport Authority, Airport and Marina Revenue 6.70%, 10/1/2023......... 2,000,000 2,059,980
Guam Power Authority, Electric Power and Light Revenues 6.30%, 10/1/2022.... 2,000,000 2,037,240
Commonwealth of Puerto Rico:
5.40%, 7/1/2025........................................................... 2,000,000 1,890,020
6.80%, 7/1/2021 (Prerefunded 7/1/2002) (a)................................ 600,000 677,712
Puerto Rico Highway and Transportation Authority, Highway Revenue
6.625%, 7/1/2018 (Prerefunded 7/1/2002) (a)............................... 3,600,000 4,035,960
Puerto Rico Ports Authority, Special Facilities Revenue (American Airlines)
6.25%, 6/1/2026 (Guaranteed; AMR Corp.)................................... 2,950,000 2,992,539
Virgin Islands Territory, Hugo Insurance Claims Fund Program
7.75%, 7/1/2011........................................................... 1,565,000 1,694,707
Virgin Islands Public Finance Authority, Revenues, Refunding,
Matching Fund Loan Notes 7.25%, 10/1/2018................................. 4,000,000 4,286,560
Virgin Islands Water and Power Authority, Electric System Revenue, Refunding
7.40%, 7/1/2011........................................................... 2,000,000 2,137,140
------
TOTAL INVESTMENTS
(cost $86,444,876)........................................................ $88,514,697
======
</TABLE>

PREMIER STATE MUNICIPAL BOND FUND, NORTH CAROLINA SERIES

Summary of Abbreviations
AMBAC American Municipal Bond Assurance Corporation MBIA Municipal Bond Investors Assurance
FGIC Financial Guaranty Insurance Company Insurance Corporation
FHA Federal Housing Administration SWDR Solid Waste Disposal Revenue
HR Hospital Revenue
</TABLE>

Summary of Combined Ratings (Unaudited)
Fitch (b) or Moody's or Standard & Poor's Percentage of Value
- ---- ---- --------- ----------
<S> <C> <C> <C>

AAA Aaa AAA 25.7%
AA Aa AA 26.4
A A A 14.5
BBB Baa BBB 26.7
Not Rated (c) Not Rated (c) Not Rated (c) 6.8
----
100.0%
====
</TABLE>

Notes to Statement of Investments:

(a) Bonds which are prerefunded are collateralized by U.S. Government
securities which are held in escrow and are used to pay principal and
interest on the municipal issue and to retire the bonds in full at the
earliest refunding date. (b) Fitch currently provides creditworthiness
information for a limited number of investments. (c) Securities which, while
not rated by Fitch, Moody's or Standard & Poor's have been determined by the
Manager to be of comparable quality to those rated securities in which the
Fund may invest.

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, NORTH CAROLINA
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1996 (UNAUDITED)
Cost Value
------ ------
<S> <C> <C> <C>

ASSETS: Investments in securities-See Statement of Investments $86,444,876 $88,514,697
Interest receivable........................ 1,475,633
Receivable for shares of Beneficial Interest subscribed 30,599
Prepaid expenses........................... 2,736
------
90,023,665
------
LIABILITIES: Due to The Dreyfus Corporation and affiliates 47,322
Due to Distributor......................... 18,246
Cash overdraft due to Custodian............ 1,900,808
Payable for shares of Beneficial Interest redeemed 54,124
Accrued expenses........................... 96,357
------
2,116,857
------
NET ASSETS.................................................................. $87,906,808
======
REPRESENTED BY: Paid-in capital............................ $87,536,686
Accumulated net realized gain (loss) on investments (1,699,699)
Accumulated net unrealized appreciation
(depreciation) on investments-Note 3........ 2,069,821
------
NET ASSETS.................................................................. $87,906,808
======
</TABLE>

NET ASSET VALUE PER SHARE
-----------------
<TABLE>
<CAPTION>

Class A Class B Class C
------- ------- -------
<S> <C> <C> <C>

Net Assets.................................................... $44,683,915 $43,211,649 $11,244
Shares Outstanding............................................ 3,355,785 3,247,634 845.195
NET ASSET VALUE PER SHARE..................................... $13.32 $13.31 $13.30
==== === ====
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.
<S> <C> <C> <C>

PREMIER STATE MUNICIPAL BOND FUND, NORTH CAROLINA
STATEMENT OF OPERATIONS SIX MONTHS ENDED OCTOBER 31, 1996 (UNAUDITED)
INVESTMENT INCOME
INCOME Interest Income............................ $2,778,079
EXPENSES: Management fee-Note 2(a)................... $ 245,234
Shareholder servicing costs-Note 2(c)...... 155,352
Distribution fees-Note 2(b)................ 107,958
Audit fees................................. 7,002
Prospectus and shareholders' reports....... 5,240
Custodian fees............................. 4,803
Registration fees.......................... 839
Legal fees................................. 680
Trustees' fees and expenses-Note 2(d)...... 657
Miscellaneous.............................. 71,347
------
Total Expenses......................... 599,112
------
INVESTMENT INCOME-NET....................................................... 2,178,967
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 3:
Net realized gain (loss) on investments.... $ 29,344
Net unrealized appreciation (depreciation) on investments 2,724,169
------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 2,753,513
------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $4,932,480
======
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, NORTH CAROLINA
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
October 31, 1996 Year Ended
(Unaudited) April 30, 1996
<S> <C> <C>
--------- -------
OPERATIONS:
Investment income-net............................................... $ 2,178,967 $ 4,585,731
Net realized gain (loss) on investments............................. 29,344 874,881
Net unrealized appreciation (depreciation) on investments........... 2,724,169 520,983
------ ------
Net Increase (Decrease) in Net Assets Resulting from Operations 4,932,480 5,981,595
------ ------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net:
Class A shares.................................................... (1,181,176) (2,589,575)
Class B shares.................................................... (997,723) (1,996,124)
Class C shares.................................................... (68) (32)
------ ------
Total Dividends............................................... (2,178,967) (4,585,731)
------ ------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares.................................................... 674,041 3,323,717
Class B shares.................................................... 1,287,798 3,025,081
Class C shares.................................................... 10,004 1,000
Dividends reinvested:
Class A shares.................................................... 598,199 1,291,521
Class B shares.................................................... 580,045 1,177,707
Class C shares.................................................... 64 32
Cost of shares redeemed:
Class A shares.................................................... (5,045,975) (8,574,929)
Class B shares.................................................... (2,661,565) (4,444,067)
------ ------
Increase (Decrease) in Net Assets from Beneficial Interest Transactions (4,557,389) (4,199,938)
------ ------
Total Increase (Decrease) in Net Assets..................... (1,803,876) (2,804,074)
NET ASSETS:
Beginning of Period................................................. 89,710,684 92,514,758
------ ------
End of Period....................................................... $87,906,808 $89,710,684
====== ======
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, NORTH CAROLINA
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Shares

--------------------------------------
Six Months Ended
October 31, 1996 Year Ended
(Unaudited) April 30, 1996
--------- --------
CAPITAL SHARE TRANSACTIONS:
Class A
----
<S> <C> <C>

Shares sold.............................................................. 51,696 254,297
Shares issued for dividends reinvested................................... 45,579 98,177
Shares redeemed.......................................................... (385,785) (653,564)
===== =====
Net Increase (Decrease) in Shares Outstanding (288,510) (301,090)
===== =====
Class B
----
Shares sold.............................................................. 98,800 229,111
Shares issued for dividends reinvested................................... 44,225 89,591
Shares redeemed.......................................................... (203,304) (338,431)
----- -----
Net Increase (Decrease) in Shares Outstanding (60,279) (19,729)
===== =====
Class C*
----
Shares sold.............................................................. 759 78
Shares issued for dividends reinvested................................... 5 3
----- -----
Net Increase (Decrease) in Shares Outstanding 764 81
===== =====
*From August 15, 1995 (commencement of initial offering) to April 30, 1996.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, NORTH CAROLINA SERIES
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>

Class A Shares
-------------------------------------------------------
Six Months Ended
October 31, 1996 Year Ended April 30,
--------------------------------------------------
PER SHARE DATA: (Unaudited) 1996 1995 1994 1993 1992(1)
----- --- --- --- --- ----
<S> <C> <C> <C> <C> <C> <C>

Net asset value, beginning of period.. $12.91 $12.72 $12.73 $13.40 $12.39 $12.00
---- --- --- --- --- ---
Investment Operations:
Investment income-net................. .34 .67 .70 .74 .78 .62
Net realized and unrealized gain (loss)
on investments...................... .41 .19 (.01) (.67) 1.02 .39
---- --- --- --- --- ---
Total from Investment Operations...... .75 .86 .69 .07 1.80 1.01
---- --- --- --- --- ---
Distributions:
Dividends from investment income-net.. (.34) (.67) (.70) (.74) (.78) (.62)
Dividends from net realized gain on investments .- .- .- .- (.01) .-
---- --- --- --- --- ---
Total Distributions................... (.34) (.67) (.70) (.74) (.79) (.62)
---- --- --- --- --- ---
Net asset value, end of period........ $13.32 $12.91 $12.72 $12.73 $13.40 $12.39
==== === === === === ===
TOTAL INVESTMENT RETURN(2)................ 12.43%(3) 6.79% 5.70% .29% 14.97% 11.36%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets 1.10%(3) .98% .65% .44% .29% .-
Ratio of net investment income
to average net assets............... 5.14%(3) 5.11% 5.63% 5.38% 5.94% 6.35%(3)
Decrease reflected in above expense ratios
due to undertakings by the Manager.. .- .02% .31% .50% .76% 1.14%(3)
Portfolio Turnover Rate............... 27.87%(4) 47.15% 12.02% 11.62% 5.76% 15.01%(4)
Net Assets, end of period (000's Omitted) $44,684 $47,042 $50,205 $68,074 $56,284 $26,387
(1) From August 1, 1991 (commencement of initial offering) to April 30, 1992.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, NORTH CAROLINA SERIES
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.

Class B Shares
-------------------------------------------------
Six Months Ended
October 31, 1996 Year Ended April 30,
--------------------------------------
PER SHARE DATA: (Unaudited) 1996 1995 1994 1993(1)
----- --- --- --- ---
<S> <C> <C> <C> <C> <C>

Net asset value, beginning of period......... $12.90 $12.71 $12.72 $13.39 $12.90
--- --- --- --- ---
Investment Operations:
Investment income-net........................ .30 .60 .64 .66 .20
Net realized and unrealized gain (loss)
on investments............................. .41 .19 (.01) (.67) .49
--- --- --- --- ---
Total from Investment Operations............. .71 .79 .63 (.01) .69
--- --- --- --- ---
Distributions:
Dividends from investment income-net......... (.30) (.60) (.64) (.66) (.20)
--- --- --- --- ---
Net asset value, end of period............... $13.31 $12.90 $12.71 $12.72 $13.39
=== === === === ===
TOTAL INVESTMENT RETURN(2)....................... 11.11%(3) 6.25% 5.12% (.27%) 18.53%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... 1.61%(3) 1.49% 1.18% 1.00% .79%(3)
Ratio of net investment income
to average net assets...................... 4.62%(3) 4.59% 5.08% 4.78% 4.47%(3)
Decrease reflected in above expense ratios
due to undertakings by the Manager......... .- .02% .30% .48% .56%(3)
Portfolio Turnover Rate...................... 27.87%(4) 47.15% 12.02% 11.62% 5.76%
Net Assets, end of period (000's Omitted).... $43,212 $42,668 $42,310 $38,968 $13,145
(1) From January 15, 1993 (commencement of initial offering) to April 30, 1993.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

Class C Shares
------------------------------------
Six Months Ended
October 31, 1996 Year Ended
PER SHARE DATA: (Unaudited) April 30, 1996(1)
<S> <C> <C>
--------- --------
Net asset value, beginning of period................................ $12.90 $12.76
---- ---
Investment Operations:
Investment income-net............................................... .29 .40
Net realized and unrealized gain (loss)
on investments.................................................... .40 .14
---- ---
Total from Investment Operations.................................... .69 .54
---- ---
Distributions:
Dividends from investment income-net................................ (.29) (.40)
---- ---
Net asset value, end of period...................................... $13.30 $12.90
==== ===
TOTAL INVESTMENT RETURN(2).............................................. 10.67%(3) 5.92%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............................. 1.91%(3) 1.73%(3)
Ratio of net investment income
to average net assets............................................ 4.33%(3) 4.31%(3)
Portfolio Turnover Rate............................................. 27.87%(4) 47.15%
Net Assets, end of period (000's Omitted)........................... $11 $1
(1) From August 15, 1995 (commencement of initial offering) to April 30, 1996.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.

</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, NORTH CAROLINA SERIES
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:

Premier State Municipal Bond Fund (the "Trust") is registered under the
Investment Company Act of 1940 ("Act") as a non-diversified open-end management
investment company and operates as a series company currently offering twelve
series including the North Carolina Series (the "Fund"). The Fund's investment
objective is to maximize current income exempt from Federal and, where
applicable, from State income taxes, without undue risk. The Dreyfus Corporation
("Manager") serves as the Fund's investment adviser. The Manager is a direct
subsidiary of Mellon Bank, N.A.

Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares. The Fund is authorized to issue an unlimited
number of $.001 par value shares in the following classes of shares: Class A,
Class B and Class C. Class A shares are subject to a sales charge imposed at the
time of purchase, Class B shares are subject to a contingent deferred sales
charge imposed at the time of redemption on redemptions made within six years of
purchase and Class C shares are subject to a contingent deferred sales charge
imposed at the time of redemption on redemptions made within one year of
purchase. Other differences between the three Classes include the services
offered to and the expenses borne by each Class and certain voting rights.

The Trust accounts separately for the assets, liabilities and operations of
each fund. Expenses directly attributable to each fund are charged to that
fund's operations; expenses which are applicable to all funds are allocated
among them on a pro rata basis.

The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.

The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations held
by the Fund.

(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to comply
with the distribution requirements PREMIER STATE MUNICIPAL BOND FUND, NORTH
CAROLINA SERIES NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) of the
Internal Revenue Code. To the extent that net realized capital gain can be
offset by capital loss carryovers, if any, it is the policy of the Fund not to
distribute such gain.

The Fund has an unused capital loss carryover of approximately $1,728,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent of April 30, 1996. If not
applied, $225,000 of the carryover expires in fiscal 2002, $1,308,000 of the
carryover expires in fiscal 2003 and $195,000 of the carryover expires in fiscal
2004.

NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:

(A) Pursuant to a management agreement ("Agreement") with the Manager, the
management fee is computed at the annual rate of .55 of 1% of the value of the
Fund's average daily net assets and is payable monthly. The Agreement provides
that if in any full fiscal year the aggregate expenses, exclusive of taxes,
brokerage, interest on borrowings and extraordinary expenses, exceed the expense
limitation of any state having jurisdiction over the Fund, the Fund may deduct
from payments to be made to the Manager, or the Manager will bear the amount of
such excess to the extent required by state law. There was no expense
reimbursement during the period ended October 31, 1996.

(B) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the
Act, the Fund pays the Distributor for distributing the Fund's Class B and Class
C shares at an annual rate of .50 of 1% of the value of the average daily net
assets of Class B shares and .75 of 1% of the value of the average daily net
assets of Class C shares. During the period ended October 31, 1996, $107,946 was
charged to the Fund for the Class B shares and $12 was charged to the Fund for
the Class C shares.

(C) Under the Shareholder Services Plan, the Fund pays the Distributor at an
annual rate of .25 of 1% of the value of the average daily net assets of Class
A, Class B and Class C shares for the provision of certain services. The
services provided may include personal services relating to shareholder
accounts, such as answering shareholder inquiries regarding the Fund and
providing reports and other information, and services related to the maintenance
of shareholder accounts. The Distributor may make payments to Service Agents (a
securities dealer, financial institution or other industry professional) in
respect of these services. The Distributor determines the amounts to be paid to
Service Agents. During the period ended October 31, 1996, $57,943, $53,973 and
$4 were charged to Class A, B and C shares, respectively, by the Distributor
pursuant to the Shareholder Services Plan.

The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
the Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. Such compensation
amounted to $21,955 during the period ended October 31, 1996.

(d) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Trust an annual fee of $2,500 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.

NOTE 3-SECURITIES TRANSACTIONS:

The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended October 31, 1996
amounted to $25,301,255 and $25,056,151, respectively.

At October 31, 1996, accumulated net unrealized appreciation on investments
was $2,069,821, consisting of $2,745,447 gross unrealized appreciation and
$675,626 gross unrealized depreciation.

At October 31, 1996, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).

PREMIER STATE MUNICIPAL
BOND FUND, NORTH CAROLINA SERIES
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT & DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940

Printed in U.S.A. 065/624SA9610
Semi-Annual Report
Premier State
Municipal Bond Fund
North Carolina Series
October 31, 1996
[Dreyfus lion/2hres logo]
<PAGE>

Semi-Annual Report

Premier State
Municipal Bond Fund
Maryland Series

October 31, 1996

Premier State Municipal Bond Fund, Maryland Series
- -------------------------------------------------------------------------------
Letter to Shareholders
Dear Shareholder:

We are pleased to provide you with this report on the Premier State
Municipal Bond Fund--Maryland Series. For its semi-annual reporting period
ended October 31, 1996, your Series produced a total return of 4.78% for Class
A shares, 4.50% for Class B shares and, 4.37% for Class C shares.* Income
dividends exempt from Federal, State of Maryland and City of Baltimore personal
income taxes of approximately $.339 for Class A shares, $.304 for Class B
shares and $.288 for Class C shares were paid.** This amounts to an annualized
tax-free distribution rate per share of 4.95%, 4.66% and 4.42% for Class A,
Class B and Class C shares, respectively.***

THE ECONOMY

The increase in long-term interest rates early this year may have
contributed to the recently reported slowdown in the rate of economic growth.
During the third quarter, the growth rate of Gross Domestic Product cooled to
2.2%, less than half the second quarter's strong 4.7% pace. Consumers--the
initiators of two thirds of all economic activity--remained cautious throughout
the year. In the third quarter, the pace of consumer spending was at its
slowest in five years. Consumer borrowing has also declined from year-ago
levels. Not surprisingly, retail sales growth has also been modest this year.
Consumers may have been restrained by wages not rising as rapidly as had been
previously suspected, given the strength in the labor market. The Employment
Cost Index, considered to be an important gauge of wage inflation by Federal
Reserve Board Chairman Alan Greenspan, rose just .6% in the third quarter, the
lowest reading in over a year. This brought the growth in wages to 2.8% over
the past twelve months, slightly less than the rate of inflation as measured by
the Consumer Price Index.

The booming housing market also seems to have cooled with both new
housing starts and existing home sales slackening since midyear. Industrial
production has slowed somewhat from its more rapid pace earlier in the year.
Given the level of capacity utilization, there appears to be no sign of
production bottlenecks that could push prices higher. Anecdotal evidence still
supports the assertion that corporations are reluctant to raise prices. The
report that the 1996 Federal budget deficit had shrunk to $107.3 billion--its
lowest level in two decades--provided another favorable sign for inflation. The
final reading of the 1996 deficit marks the fourth straight decline from fiscal
1992's record $290.4 billion.

MARKET ENVIRONMENT

Over the last few months, the supply of new issue Maryland paper has
been rather heavy. This has helped to create a good secondary supply from
which the Series has traditionally purchased undervalued bonds. With a good
secondary supply, the Series has been able to buy some undervalued securities
while selling bonds which had achieved our price goals. We believe that the
current Maryland supply should be absorbed quickly and, with very little new
issue supply on the horizon, one would suspect that demand will quickly
outstrip supply. This would enable Maryland bonds to start to trade at a
premium when compared to the rest of the municipal market.

Municipals remained undervalued when compared to the taxable fixed
income markets because the demand for municipals declined as the market
improved. This was especially true of the long maturity end where the bulk of
new issue supply has traditionally been issued. If the fixed income markets
continue to improve, demand for long municipals should continue to decline.
The intermediate maturity range should continue to see price improvement
because demand has outstripped supply.

THE PORTFOLIO

The Series has been slowly selling slight discounts with short calls
and low yields, while purchasing modest premiums that have higher yields,
produce more income and are more defensive. Since interest rates have had a
significant decline, the Series is slowly becoming more defensive. If interest
rates continue to decline, the Series would remain defensive. If interest
rates were to suddenly rise, the Series would be in a good position to
capitalize on a weak market and purchase bonds which would be significantly
undervalued because of a declining market environment.

As interest rates have declined, lower-rated issues have become very
expensive and the risk versus reward relationship no longer favors this type of
security. The Series has taken advantage of this current market condition by
selling lower-rated, less liquid issues while purchasing higher-rated
securities which are traditionally more liquid. This strategy will give it the
flexibility to quickly react if the market were to deteriorate. The Series has
not sacrificed income because it has purchased housing and other types of
insured bonds at equivalent yields. These credits usually require a lot of
research and are difficult to find, but we feel they produce a very high level
of income without the credit risk which is usually associated with higher
yielding bonds.

Included in this report is a series of detailed statements about your
Series' holdings and its financial condition. We hope they are informative.
Please know that we appreciate greatly your continued confidence in the Series
and in The Dreyfus Corporation.

Very truly yours,

Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
November 15, 1996
New York, N.Y.

**Some income may be subject to the Federal Alternative Minimum Tax (AMT)
for certain shareholders. Income may be subject to some State and local tax for
non-Maryland residents. Capital gain distributions may be subject to Federal,
State and local taxes.

***Distribution rate per share is based upon dividends per share paid from
net investment income during the period (annualized), divided by the maximum
offering price, in the case of Class A shares, or the net asset value per share,
in the case of Class B and Class C shares, at the end of the period.

<PAGE>
Premier State Municipal Bond Fund, Maryland Series
- ----------------------------------------------------------------------------
Statement of Investments October 31, 1996 (Unaudited)

<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments--98.6% Amount Value
- ---------------------------------------------------------------------------
<S> <C> <C>
Maryland--79.2%
Anne Arundel County, Consolidated Water and Sewer 7.75%, 3/15/2008............ $ 1,000,000 $ 1,086,600
Baltimore:
7%, 10/15/2007 (Insured; MBIA)............................................... 1,500,000 1,758,285
7.15%, 10/15/2008............................................................ 1,275,000 1,490,653
Mortgage Revenue, Refunding (Tindeco Wharf Project):
6.50%, 12/20/2012 (Collateralized; GNMA).................................... 1,500,000 1,580,115
6.60%, 12/20/2024 (Collateralized; GNMA).................................... 4,250,000 4,490,210
Port Facilities Revenue (Consolidated Coal Sales) 6.50%, 12/1/2010........... 9,740,000 10,607,931
Baltimore City Housing Corp., MFHR, Refunding
7.25%, 7/1/2023 (Collateralized; FNMA)....................................... 3,225,000 3,357,838
Baltimore County:
Mortgage Revenue (First Mortgage - Pickersgill) 7.70%, 1/1/2021.............. 3,000,000 3,150,390
PCR, Refunding (Bethlehem Steel Corp. Project):
7.50%, 6/1/2015............................................................. 3,500,000 3,633,245
7.55%, 6/1/2017............................................................. 2,500,000 2,614,500
Gaithersburg, Hospital Facilities Improvement Revenue, Refunding (Shady Grove)
6.50%, 9/1/2012 (Insured; FSA)............................................... 10,000,000 11,234,000
Howard County:
COP 8.15%, 2/15/2020......................................................... 605,000 814,524
EDR, Refunding (M.O.R. XIV Associates Project) 7.75%, 6/1/2012............... 2,500,000 2,652,600
Mortgage Revenue, Refunding (Normandy Woods 111 Apartment Project)
6.10%, 7/1/2025............................................................. 2,000,000 2,023,100
Howard County Metropolitan District 6.125%, 5/15/2023......................... 2,000,000 2,101,580
Kent County, College Revenue, Refunding (Washington College Project)
7.70%, 7/1/2018.............................................................. 1,750,000 1,903,300
Maryland Community Development Administration,
Department of Housing and Community Development:
MFHR:
6.50%, 5/15/2013........................................................... 3,000,000 3,131,550
8.875%, 5/15/2021.......................................................... 360,000 365,602
7.30%, 5/15/2023........................................................... 2,205,000 2,324,026
6.85%, 5/15/2033........................................................... 5,000,000 5,205,400
6.70%, 5/15/2036 (Insured; FHA)............................................ 7,710,000 8,028,963
Single Family Program:
7.40%, 4/1/2009............................................................ 1,000,000 1,053,500
6.95%, 4/1/2011............................................................ 5,810,000 6,132,571
7.70%, 4/1/2015............................................................ 3,365,000 3,511,007
6.55%, 4/1/2026............................................................ 7,420,000 7,668,347
6.75%, 4/1/2026............................................................ 3,645,000 3,786,134
7.375%, 4/1/2026........................................................... 2,000,000 2,068,420
Zero Coupon, 4/1/2029...................................................... 85,075,000 6,591,611

<PAGE>
Premier State Municipal Bond Fund, Maryland Series
- ----------------------------------------------------------------------------
Statement of Investments (continued) October 31, 1996 (Unaudited)

Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------------------------------ ------------- ---------
Maryland (continued)
Maryland Community Development Administration,
Department of Housing and Community Development (continued):
Single Family Program (continued):
7.625%, 4/1/2029........................................................... $ 7,240,000 $ 7,539,591
7.45%, 4/1/2032............................................................ 5,915,000 6,211,874
Maryland Department of Transportation, Consolidated Transportation
6.375%, 9/1/2006............................................................. 5,000,000 5,406,050
Maryland Economic Development Corp., Revenue
(Health and Mental Hygiene Providers Facilities Acquisition Program):
8.375%, 3/1/2013............................................................ 4,415,000 4,671,467
8.75%, 3/1/2017............................................................. 5,150,000 5,538,516
Maryland Health and Higher Educational Facilities Authority, Revenue:
(Frederick Memorial Hospital) 5%, 7/1/2023 (Insured; FGIC)................... 2,870,000 2,612,504
(Refunding - Doctors Community Hospital) 5.50%, 7/1/2024..................... 4,735,000 4,218,790
(Refunding - Francis Scott Key Medical Center) 5%, 7/1/2023 (Insured; FGIC).. 1,500,000 1,365,420
(Refunding - Howard County General Hospital) 5.50%, 7/1/2025................. 2,000,000 1,796,040
(Refunding - John Hopkins) 5%, 7/1/2023...................................... 3,000,000 2,719,350
(Refunding - Maryland General Hospital) 6.125%, 7/1/2019 (Insured; MBIA)..... 1,470,000 1,515,247
(Refunding - Memorial Hospital of Cumberland) 6.50%, 7/1/2017 (Insured; MBIA) 1,000,000 1,049,350
(Refunding - Roland Park Project) 7.75%, 7/1/2012............................ 2,230,000 2,354,635
(Refunding - Suburban Hospital):
5.125%, 7/1/2021............................................................ 2,250,000 2,069,820
5.125%, 7/1/2021 (Insured; AMBAC)........................................... 4,700,000 4,370,436
(Union Hospital of Cecil County) 6.70%, 7/1/2009............................. 2,320,000 2,458,179
(University of Maryland Medical Systems) 7%, 7/1/2022 (Insured; FGIC)........ 4,500,000 5,432,535
Maryland Industrial Development Financing Authority, EDR
(Medical Waste Association) 8.75%, 11/15/2010................................ 750,000 748,785
Maryland Local Government Insurance Trust, Capitalization Program, COP
7.125%, 8/1/2009............................................................. 3,250,000 3,562,357
Maryland Stadium Authority, Sports Facility LR 7.60%, 12/15/2019.............. 5,250,000 5,772,113
Maryland Transportation Authority, Transportation Facilities Project Revenue,
Refunding 5.70%, 7/1/2005.................................................... 3,700,000 3,916,080
Montgomery County, PCR, Refunding (Potomac Electric Power Company)
5.375%, 2/15/2024 (Insured; MBIA)............................................ 3,100,000 3,017,540
Montgomery County Housing Opportunities Commission, Revenue:
Multi-Family Mortgage:
7.05%, 7/1/2032............................................................. 2,485,000 2,608,977
7.375%, 7/1/2032............................................................ 4,630,000 4,822,932
Single Family Mortgage:
7.375%, 7/1/2017............................................................ 1,835,000 1,937,687
6.625%, 7/1/2026............................................................ 1,015,000 1,052,200

Premier State Municipal Bond Fund, Maryland Series
- ----------------------------------------------------------------------------
Statement of Investments (continued) October 31, 1996 (Unaudited)

Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------------------------------ ------------- ---------
Maryland (continued)

Montgomery County Revenue Authority, LR (Olney Indoor Swim Center Project)
6.30%, 7/15/2012 (Prerefunded 7/15/2000) (a)................................. $ 2,110,000 $ 2,289,392
Northeast Waste Disposal Authority, Solid Waste Revenue
(Montgomery County Resource Recovery Project):
6%, 7/1/2008................................................................ 3,690,000 3,811,659
6.20%, 7/1/2010............................................................. 8,650,000 8,932,769
6.30%, 7/1/2016............................................................. 8,280,000 8,447,918
Prince Georges County:
Consolidated Public Improvement, Refunding
6.75%, 7/1/2010 (Prerefunded 7/1/2001) (a).................................. 1,170,000 1,287,421
PCR, Refunding (Potomac Electric Project):
5.75%, 3/15/2010............................................................ 5,250,000 5,503,208
6%, 9/1/2022................................................................ 3,750,000 3,876,113
Revenue Project, Refunding (Dimensions Health Corp.) 5.30%, 7/1/2024......... 4,000,000 3,702,440
Prince Georges County Housing Authority:
Mortgage Revenue, Refunding:
(New Keystone Apartment Project) 6.80%, 7/1/2025 (Insured: FHA & MBIA)...... 4,300,000 4,495,005
(Stevenson Apartments Project) 6.35%, 7/20/2020 (Collateralized; GNMA)...... 3,000,000 3,074,820
SFMR 6.60%, 12/1/2025 (Collateralized: FNMA & GNMA).......................... 4,660,000 4,816,669
Washington County, Public Improvement
4.875%, 1/1/2014 (Insured; FGIC)............................................. 1,450,000 1,352,328

U. S. Related--19.4%
Guam Airport Authority, Revenue 6.70%, 10/1/2023.............................. 4,000,000 4,119,960
Puerto Rico Commonwealth:
5.85%, 7/1/2009.............................................................. 5,000,000 5,144,050
6.50%, 7/1/2023.............................................................. 1,000,000 1,070,050
Puerto Rico Commonwealth Aqueduct and Sewer Authority, Revenue, Refunding
5%, 7/1/2019................................................................. 15,870,000 14,343,623
Puerto Rico Commonwealth Highway and Transportation Authority, Highway Revenue
5.40%, 7/1/2006 (Insured; FSA)............................................... 11,000,000 11,359,920
Refunding:
5.25%, 7/1/2021............................................................. 2,500,000 2,306,750
5%, 7/1/2022................................................................ 5,080,000 4,512,564

Premier State Municipal Bond Fund, Maryland Series
- ----------------------------------------------------------------------------
Statement of Investments (continued) October 31, 1996 (Unaudited)

Principal
Long-Term Municipal Investments (continued) Amount Value
- ------------------------------------------------------------------------------ ------------- ---------
U.S. Related (continued)

Puerto Rico Electric Power Authority, Power Revenue 6.375%, 7/1/2024.......... $ 7,900,000 $ 8,300,372
Puerto Rico Public Buildings Authority, Revenue, Refunding 5.70%, 7/1/2009.... 3,500,000 3,592,225
University of Puerto Rico, University Revenue
5.25%, 6/1/2025 (Insured; MBIA).............................................. 5,525,000 5,330,686
------------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $292,081,874)..................... $304,804,419
------------
------------
Short-Term Municipal Investments--1.4%
- ------------------------------------------------------------------------------
Maryland:
Frederick, VRDN 3.75% (LOC; Fuji Bank and Trust Company) (b,c)................ $ 300,000 $ 300,000
Northeast Waste Disposal Authority, RRR, Refunding, VRDN
(Harford County Resource) 3.50% (Insured; AMBAC) (b)......................... 1,540,000 1,540,000
Prince Georges County Housing Authority, Mortgage Revenue, VRDN
(Laurel - Oxford) 3.625% (LOC; Bankers Trust Company) (b,c).................. 2,500,000 2,500,000
------------

TOTAL SHORT-TERM MUNICIPAL INVESTMENTS (cost $4,340,000)...................... $ 4,340,000
------------
------------
TOTAL INVESTMENTS--100.0% (cost $296,421,874)................................. $309,144,419
------------
------------
</TABLE>
Premier State Municipal Bond Fund, Maryland Series
- ---------------------------------------------------------
Summary of Abbreviations
- ---------------------------------------------------------
<TABLE>

<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation LR Lease Revenue
COP Certificate of Participation MBIA Municipal Bond Investors Assurance
EDR Economic Development Revenue Insurance Corporation
FGIC Financial Guaranty Insurance Company MFHR Multi-Family Housing Revenue
FHA Federal Housing Administration PCR Pollution Control Revenue
FNMA Federal National Mortgage Association RRR Resources Recovery Revenue
FSA Financial Security Assurance SFMR Single Family Mortgage Revenue
GNMA Government National Mortgage Association VRDN Variable Rate Demand Notes
LOC Letter of Credit
</TABLE>

Summary of Combined Ratings (Unaudited)

<TABLE>

Fitch (d) or Moody's or Standard & Poor's Percentage of Value
- --------- ------- ----------------- -------------------
<S> <C> <C> <C> <C> <C>
AAA Aaa AAA 25.1%
AA Aa AA 30.5
A A A 27.4
BBB Baa BBB 7.4
F1+ & F1 MIG1, VMIG1 & P1 SP1 & A1 1.4
Not Rated (e) Not Rated (e) Not Rated (e) 8.2

</TABLE>

Notes to Statement of Investments:
- --------------------------------------------------
(a) Bonds which are prerefunded are collateralized by U.S. Government
securities which are held in escrow and are used to pay principal and interest
on the municipal issue and to retire the bonds in full at the earliest
refunding date.

(b) Securities payable on demand. The interest rate, which is
subject to change, is based upon bank prime rates or an index of market
interest rates.

(d) Fitch currently provides
creditworthiness information for a limited number of investments.

(e) Securities which, while not rated by Fitch, Moody's or Standard & Poors have
been determined by the Manager to be of comparable quality to those rated
securities in which the Fund may invest.

(f) At October 31, 1996, the Fund had
$100,378,148 (31.2% of net assets) invested in securities whose payment of
principal and interest is dependent upon revenues generated from housing
projects.

See notes to financial statements.

<PAGE>

<TABLE>
<CAPTION>
Premier State Municipal Bond Fund, Maryland Series
- ------------------------------------------------------------------
Statement of Assets and Liabilities October 31, 1996 (Unaudited)

Cost Value
------------ -------------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments...... $296,421,874 $309,144,419
Cash......................................................... 242,743
Receivable for investment securities sold.................... 7,238,152
Interest receivable.......................................... 5,342,563
Receivable for shares of Beneficial Interest subscribed...... 123,838
Prepaid expenses............................................. 4,257
------------
322,095,972
------------

LIABILITIES: Due to The Dreyfus Corporation and affiliates................ 164,230
Due to Distributor........................................... 86,495
Payable for shares of Beneficial Interest redeemed........... 202,160
Accrued expenses............................................. 40,464
------------
493,349
------------

NET ASSETS....................................................................... $321,602,623
------------
------------

REPRESENTED BY: Paid-in capital.............................................. $304,776,134
Accumulated net realized gain (loss) on investments.......... 4,103,944
Accumulated net unrealized appreciation (depreciation)
on investments--Note 3...................................... 12,722,545
------------
NET ASSETS....................................................................... $321,602,623
------------
------------
</TABLE>

NET ASSET VALUE PER SHARE
-------------------------
<TABLE>
<CAPTION>

Class A Class B Class C
------------ ----------- -----------
<S> <C> <C> <C>
Net Assets.................................................. $278,069,610 $43,489,150 $43,863
Shares Outstanding.......................................... 21,477,865 3,358,877 3,387
NET ASSET VALUE PER SHARE................................... $12.95 $12.95 $12.95
------ ------ ------
------ ------ ------

</TABLE>

See notes to financial statements.

Premier State Municipal Bond Fund, Maryland Series
- ----------------------------------------------------------------------
Statement of Operations Six Months Ended October 31, 1996 (Unaudited)

<TABLE>

INVESTMENT INCOME

<S> <C> <C> <C>
INCOME Interest Income........................................... $10,003,503
EXPENSES: Management fee--Note 2(a)................................. $ 892,339
Shareholder servicing costs--Note 2(c).................... 513,587
Distribution fees--Note 2(b).............................. 106,922
Professional fees......................................... 31,092
Custodian fees............................................ 16,480
Prospectus and shareholders' reports...................... 8,827
Registration fees......................................... 4,551
Trustees' fees and expenses--Note 2(d).................... 1,467
Miscellaneous............................................. 10,313
---------
Total Expenses........................................ 1,585,578
-----------
INVESTMENT INCOME--NET..................................................... 8,417,925

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 3:

Net realized gain (loss) on investments................... $1,116,093
Net unrealized appreciation (depreciation) on investments. 5,270,179
---------

NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS..................... 6,386,272
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS....................... $14,804,197
-----------
-----------
</TABLE>

See notes to financial statements.

<PAGE>
Premier State Municipal Bond Fund, Maryland Series
- ---------------------------------------------------
Statement of Changes in Net Assets

<TABLE>
<CAPTION>
Six Months Ended
October 31, 1996 Year Ended
(Unaudited) April 30, 1996
---------------- --------------
<S> <C> <C>
OPERATIONS:
Investment income--net..................................................... $ 8,417,925 $ 17,434,321
Net realized gain (loss) on investments.................................... 1,116,093 4,318,992
Net unrealized appreciation (depreciation) on investments.................. 5,270,179 1,867,438
------------ ------------
Net Increase (Decrease) in Net Assets Resulting from Operations....... 14,804,197 23,620,751
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Class A shares........................................................... (7,408,872) (15,612,512)
Class B shares........................................................... (1,008,219) (1,821,592)
Class C shares........................................................... (834) (217)
Net realized gain on investments:
Class A shares........................................................... -- (1,739,958)
Class B shares........................................................... -- (229,505)
Class C shares........................................................... -- (6)
------------ ------------
Total Dividends........................................................ (8,417,925) (19,403,790)
------------ ------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares........................................................... 5,080,921 11,106,487
Class B shares........................................................... 3,286,359 7,992,863
Class C shares........................................................... 15,500 27,000
Dividends reinvested:
Class A shares........................................................... 4,700,788 11,154,241
Class B shares........................................................... 650,613 1,358,026
Class C shares........................................................... 820 219
Cost of shares redeemed:
Class A shares........................................................... (21,126,230) (44,093,946)
Class B shares........................................................... (2,476,173) (3,601,826)
------------ ------------
Increase (Decrease) in Net Assets from Beneficial Interest Transactions. (9,867,402) (16,056,936)
------------ ------------
Total Increase (Decrease) in Net Assets............................... (3,481,130) (11,839,975)

NET ASSETS:
Beginning of Period....................................................... 325,083,753 336,923,728
------------ ------------
End of Period............................................................. $321,602,623 $325,083,753
------------ ------------
------------ ------------

</TABLE>

See notes to financial statements.

<PAGE>
Premier State Municipal Bond Fund, Maryland Series
- ---------------------------------------------------
Statement of Changes in Net Assets (continued)

Shares
-------------------------------------
Six Months Ended
October 31, 1996 Year Ended
(Unaudited) April 30, 1996
---------------- --------------
CAPITAL SHARE TRANSACTIONS:

Class A
-------
<S> <C> <C>
Shares sold............................................................ 395,901 860,692
Shares issued for dividends reinvested................................. 367,296 863,509
Shares redeemed........................................................ (1,652,477) (3,429,459)
------------ -----------
Net Increase (Decrease) in Shares Outstanding............... (889,280) (1,705,258)
------------ -----------
------------ -----------

Class B
-------
Shares sold............................................................ 258,014 620,596
Shares issued for dividends reinvested................................. 50,820 105,093
Shares redeemed........................................................ (194,386) (279,793)
------------ -----------
Net Increase (Decrease) in Shares Outstanding............... 114,448 445,896
------------ -----------
------------ -----------
Class C*
--------
Shares sold............................................................ 1,229 2,077
Shares issued for dividends reinvested................................. 64 17
------------ -----------
Net Increase (Decrease) in Shares Outstanding............... 1,293 2,094
------------ -----------
------------ -----------

<FN>
*From August 15, 1995 (commencement of initial offering) to April 30, 1996.
</FN>
</TABLE>

See notes to financial statements.
<PAGE>
Premier State Municipal Bond Fund, Maryland Series
- ---------------------------------------------------
Financial Highlights

Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.

Class A Shares
----------------------------------------------------------------
Six Months Ended
October 31, 1996 Year Ended April 30,
-----------------------------------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA: (Unaudited) 1996 1995 1994 1993 1992
----------- ---- ---- ---- ---- ----
Net asset value, beginning of period............ $12.69 $12.54 $12.46 $13.02 $12.43 $12.13
------ ------ ------ ------ ------ ------
Investment Operations:
Investment income--net.......................... .34 .67 .70 .73 .76 .79
Net realized and unrealized gain (loss)
on investments................................. .26 .23 .08 (.53) .68 .35
------ ------ ------ ------ ------ ------
Total from Investment Operations................ .60 .90 .78 .20 1.44 1.14
------ ------ ------ ------ ------ ------
Distributions:
Dividends from investment income--net........... (.34) (.67) (.70) (.73) (.76) (.79)
Dividends from net realized gain on investments. -- (.08) -- (.03) (.09) (.05)
------ ------ ------ ------ ------ ------
Total Distributions............................. (.34) (.75) (.70) (.76) (.85) (.84)
------ ------ ------ ------ ------ ------
Net asset value, end of period.................. $12.95 $12.69 $12.54 $12.46 $13.02 $12.43
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
TOTAL INVESTMENT RETURN(1)........................ 9.48%(2) 7.24% 6.52% 1.33% 11.93% 9.68%

RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets......... .91%(2) .90% .90% .80% .69% .53%
Ratio of net investment income
to average net assets.......................... 5.26%(2) 5.23% 5.69% 5.51% 5.93% 6.40%
Decrease reflected in above expense ratios
due to undertakings by the Manager............. -- -- .01% .10% .22% .41%
Portfolio Turnover Rate......................... 16.95%(3) 41.65% 35.39% 10.27% 17.92% 16.21%
Net Assets, end of period (000's Omitted)....... $278,070 $283,878 $301,834 $335,518 $337,307 $254,240

<FN>
(1) Exclusive of sales load.
(2) Annualized.
(3) Not annualized.
</FN>
</TABLE>

See notes to financial statements.

Premier State Municipal Bond Fund, Maryland Series
- ------------------------------------------------------------------
Financial Highlights (continued)

Contained below is per share operating performance data for a
share of Beneficial Interest outstanding, total investment return,
ratios to average net assets and other supplemental data for each
period indicated. This information has been derived from the Fund's
financial statements.

Class B Shares
----------------------------------------------------------------
Six Months Ended
October 31, 1996 Year Ended April 30,
-----------------------------------------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA: (Unaudited) 1996 1995 1994 1993(1)
----------- ---- ---- ---- ----

Net asset value, beginning of period................. $12.69 $12.54 $12.46 $13.02 $12.64
------ ------ ------ ------ ------
Investment Operations:
Investment income--net............................... .30 .61 .63 .65 .20
Net realized and unrealized gain (loss)
on investments..................................... .26 .23 .08 (.53) .38
------ ------ ------ ------ ------
Total from Investment Operations..................... .56 .84 .71 .12 .58
------ ------ ------ ------ ------
Distributions:
Dividends from investment income--net................ (.30) (.61) (.63) (.65) (.20)
Dividends from net realized gain on investments...... -- (.08) -- (.03) --
------ ------ ------ ------ ------
Total Distributions.................................. (.30) (.69) (.63) (.68) (.20)
------ ------ ------ ------ ------
Net asset value, end of period....................... $12.95 $12.69 $12.54 $12.46 $13.02
------ ------ ------ ------ ------
------ ------ ------ ------ ------
TOTAL INVESTMENT RETURN(2)............................. 8.93%(3) 6.66% 5.94% .75% 15.74%(3)

RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.............. 1.44%(3) 1.43% 1.44% 1.37% 1.09%(3)
Ratio of net investment income
to average net assets.............................. 4.72%(3) 4.68% 5.13% 4.82% 4.55%(3)
Decrease reflected in above expense ratios
due to undertakings by the Manager................. -- -- .01% .08% .12%(3)
Portfolio Turnover Rate.............................. 16.95%(4) 41.65% 35.39% 10.27% 17.92%
Net Assets, end of period (000's Omitted)............ $43,489 $41,179 $35,090 $30,527 $5,931

<FN>
(1) From January 15, 1993 (commencement of initial offering) to April 30, 1993.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
</FN>
</TABLE>

See notes to financial statements.

<PAGE>
Premier State Municipal Bond Fund, Maryland Series
- --------------------------------------------------------
Financial Highlights (continued)

Contained below is per share operating performance data for a share
of Beneficial Interest outstanding, total investment return, ratios to
average net assets and other supplemental data for each period indicated.
This information has been derived from the Fund's financial statements.

Class C Shares
--------------------------------------
Six Months Ended
October 31, 1996 Year Ended
PER SHARE DATA: (Unaudited) April 30, 1996(1)
---------------- -----------------
<S> <C> <C>
Net asset value, beginning of period.............................. $12.69 $12.67
------ ------
Investment Operations:
Investment income--net............................................ .29 .41
Net realized and unrealized gain (loss)
on investments.................................................. .26 .10
------ ------
Total from Investment Operations.................................. .55 .51
------ ------
Distributions:
Dividends from investment income--net............................. (.29) (.41)
Dividends from net realized gain on investments................... -- (.08)
------ ------
Total Distributions............................................... (.29) (.49)
------ ------
Net asset value, end of period.................................... $12.95 $12.69
------ ------
------ ------
TOTAL INVESTMENT RETURN(2).......................................... 8.67%(3) 5.57%(3)

RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets........................... 1.63%(3) 1.80%(3)
Ratio of net investment income
to average net assets........................................... 4.49%(3) 4.59%(3)
Portfolio Turnover Rate........................................... 16.95%(4) 41.65%
Net Assets, end of period (000's Omitted)......................... $44 $27

<FN>
(1) From August 15, 1995 (commencement of initial offering) to April 30, 1996.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
</FN>
</TABLE>

See notes to financial statements.

<PAGE>
Premier State Municipal Bond Fund, Maryland Series
- -----------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1--Significant Accounting Policies:

Premier State Municipal Bond Fund (the "Trust") is registered under the
Investment Company Act of 1940 ("Act") as a non-diversified open-end management
investment company and operates as a series company currently offering twelve
series including the Maryland Series (the "Fund"). The Fund's investment
objective is to maximize current income exempt from Federal and, where
applicable, from State income taxes, without undue risk. The Dreyfus
Corporation ("Manager") serves as the Fund's investment adviser. The Manager is
a direct subsidiary of Mellon Bank, N.A.

Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares. The Fund is authorized to issue an unlimited
number of $.001 par value shares in the following classes of shares: Class A,
Class B and Class C. Class A shares are subject to a sales charge imposed at the
time of purchase, Class B shares are subject to a contingent deferred sales
charge imposed at the time of redemption on redemptions made within six years of
purchase and Class C shares are subject to a contingent deferred sales charge
imposed at the time of redemption on redemptions made within one year of
purchase. Other differences between the three Classes include the services
offered to and the expenses borne by each Class and certain voting rights.

The Trust accounts separately for the assets, liabilities and operations of
each fund. Expenses directly attributable to each fund are charged to that
fund's operations; expenses which are applicable to all funds are allocated
among them on a pro rata basis.

The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.

The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations held
by the Fund.

(d) Federal income taxes: It is the policy of the Fund to continue to qualify
as a regulated investment company, which can distribute tax exempt dividends,
by complying with the applicable provisions of the Internal Revenue Code, and
to make distributions of income and net realized capital gain sufficient to
relieve it from substantially all Federal income and excise taxes.

NOTE 2--Management Fee and Other Transactions With Affiliates:

(a) Pursuant to a management agreement ("Agreement") with the Manager, the
management fee is computed at the annual rate of .55 of 1% of the value of the
Funds' average daily net assets and is payable monthly. The Agreement provides
that if in any full fiscal year the aggregate expenses, exclusive of taxes,
brokerage, interest on borrowings and extraordinary expenses, exceed the
expense limitation of any state having jurisdiction over the Fund, the Fund may
deduct from payments to be made to the Manager, or the Manger will bear the
amount of such excess to the extent required by state law. There was no
expense reimbursement during the period ended October 31, 1996.

Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager,
retained $3,642 during the period ended October 31, 1996, from commissions
earned on sales of the Fund's shares.

(b) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the
Act, the Fund pays the Distributor for distributing the Fund's Class B and Class
C shares at an annual rate of .50 of 1% of the value of the average daily net
assets of Class B shares and .75 of 1% of the value of the average daily net
assets of Class C shares. During the period ended October 31, 1996, $106,783 was
charged to the Fund for the Class B shares and $139 was charged to the Fund for
the Class C shares.

(c) Under the Shareholder Services Plan, the Fund pays the Distributor at
an annual rate of .25 of 1% of the value of the average daily net assets of
Class A, Class B and Class C shares for the provision of certain services. The
services provided may include personal services relating to shareholder
accounts, such as answering shareholder inquiries regarding the Fund and
providing reports and other information, and services related to the maintenance
of shareholder accounts. The Distributor may make payments to Service Agents (a
securities dealer, financial institution or other industry professional) in
respect of these services. The Distributor determines the amounts to be paid to
Service Agents. During the period ended October 31, 1996, $352,171, $53,391 and
$47 were charged to Class A, B and C shares, respectively, by the Distributor
pursuant to the Shareholder Services Plan.

The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
the Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. Such compensation
amounted to $73,232 during the period ended October 31, 1996.

(d) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Trust an annual fee of $2,500 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.

<PAGE>
NOTE 3--Securities Transactions:

The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended October 31, 1996
amounted to $52,870,460 and $69,245,493, respectively.

At October 31, 1996, accumulated net unrealized appreciation on investments
was $12,722,545, consisting of $14,051,352 gross unrealized appreciation and
$1,328,807 gross unrealized depreciation.

At October 31, 1996, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting purposes
(see the Statement of Investments).

<PAGE>

Premier State Municipal
Bond Fund, Maryland Series
200 Park Avenue
New York, NY 10166

Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166

Custodian
The Bank of New York
90 Washington Street
New York, NY 10286

Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940

Printed in U.S.A. 052/616SA9610
<PAGE>

Semi-Annual Report

Premier State
Municipal Bond Fund

Michigan Series

October 31, 1996

Premier State Municipal Bond Fund, Michigan Series
- ----------------------------------------------------
Letter to Shareholders

Dear Shareholder:

We are pleased to provide you with this report on the Premier State
Municipal Bond Fund--Michigan Series. For its semi-annual reporting period ended
October 31, 1996, your Series produced a total return of 4.96% for Class A
shares, 4.62% for Class B shares and, 4.46 % for Class C shares.* Income
dividends, exempt from Federal and State of Michigan personal income taxes, of
approximately $.411 for Class A shares, $.372 for Class B shares and $.348 for
Class C shares were paid.** This amounts to annualized tax-free distribution
rates per share of 5.03%, 4.77% and 4.46% for Class A, Class B and Class C
shares, respectively.***

THE ECONOMY

The increase in long-term interest rates early this year may have
contributed to the recently reported slowdown in the rate of economic growth.
During the third quarter, the growth rate of the Gross Domestic Product cooled
to 2.2%, less than half the second quarter's strong 4.7% pace. Consumers--the
initiators of two thirds of all economic activity--remained cautious throughout
the year. In the third quarter, the pace of consumer spending was at its
slowest in five years. Consumer borrowing has also declined from year-ago
levels. Not surprisingly, retail sales growth has also been modest this year.
Consumers may have been restrained by wages not rising as rapidly as had been
previously suspected, given the strength in the labor market. The Employment
Cost Index, considered to be an important gauge of wage inflation by Federal
Reserve Board Chairman Alan Greenspan, rose just .6% in the third quarter, the
lowest reading in over a year. This brought the growth in wages to 2.8% over
the past twelve months, slightly less than the rate of inflation as measured by
the Consumer Price Index.

The booming housing market also seems to have cooled with both new
housing starts and existing home sales slackening since midyear. Industrial
production has slowed somewhat from its more rapid pace earlier in the year.
Given the level of capacity utilization, there appears to be no sign of
production bottlenecks that could push prices higher. Anecdotal evidence still
supports the assertion that corporations are reluctant to raise prices. The
report that the 1996 Federal budget deficit had shrunk to $107.3 billion--its
lowest level in two decades--provided another favorable sign for inflation. The
final reading of the 1996 deficit marks the fourth straight decline from fiscal
1992's record $290.4 billion.

MARKET ENVIRONMENT

For much of the past six months, the trading environment for fixed income
investments has been dominated by a measure of volatility one would expect to
find during periods of shifting perceptions as to the course of economic growth
and the ensuing level of inflationary pressures. Early on, as attention focused
on the tightening of the labor markets as the economy continued to expand at a
quickening pace, investors became convinced of an imminent tightening of
monetary policy by the Federal Reserve Board's Open Market Committee. As such,
long-term interest rates were pushed to their highest levels in more than a
year. As subsequent data showed an abatement in the pace of the economy's rate
of growth and the absence of any clear signs of inflationary pressures, market
perceptions quickly reversed, sending prices up and interest rates back down to
more comfortable levels. These shifts in investors' perceptions of the economy
and the appropriate levels of long-term interest rates occurred frequently
during the early months of the period, establishing a broad trading range in
prices. As the period drew to a close, however, there emerged a sense of
unanimity among market participants that economic growth was continuing at a
moderate rate without significant inflationary pressures. As such, the close of
the period saw some of the best price performance of the entire six months.

THE PORTFOLIO

In managing your Series' assets during a period of such volatility a
decidedly conservative posture was maintained. During those periods when
perceptions became more tentative, emphasis was placed on those securities
bearing more muted characteristics of principal volatility and higher levels of
tax-free income. At these times higher levels of cash reserves were
established in order to further buffer the portfolio from the consequences of a
rising interest rate environment. As perceptions became more constructive and
prices advanced, trading activity sought to extend portfolio duration in order
to capitalize on the potential price appreciation inherent in such an
environment. Throughout the entire six-month period investment decisions
tended to focus on those issues bearing higher degrees of creditworthiness and
strong characteristics of protection from redemption prior to maturity. Your
Fund benefitted from this conservative strategy, producing competitive levels
of tax-free income while continuing to stress principal preservation.

We appreciate your investment in the Premier State Municipal Bond
Fund-Michigan Series, and we look forward to continuing to serve your investment
needs.

Very truly yours,

Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation

November 22, 1996
New York, N.Y.

**Some income may be
subject to the Federal Alternative Minimum Tax (AMT) for certain
shareholders.

***Distribution rate per share is based upon dividends per share paid from net
investment income during the period (annualized), divided by the maximum
offering price, in the case of Class A shares, or the net asset value per
share, in the case of Class B and Class C shares, at the end of the period.

<PAGE>
Premier State Municipal Bond Fund, Michigan Series
- -------------------------------------------------------------
Statement of Investments October 31, 1996 (Unaudited)

<TABLE>
<CAPTION>
Principal
Long-Term Municipal Investments--98.9% Amount Value
- ---------------------------------------------------------------------------------- ------------- ------------
<S> <C> <C>
Michigan--97.4%
Brandon School District 5.75%, 5/1/2020 (Insured; FGIC)........................... $ 2,240,000 $ 2,240,875
Brighton Area School District, Refunding:
Zero Coupon, 5/1/2014 (Insured; AMBAC).......................................... 8,000,000 2,956,400
Zero Coupon, 5/1/2020 (Insured; AMBAC).......................................... 5,000,000 1,301,250
Capital Region Airport Authority, Airport Revenue
6.70%, 7/1/2021 (Insured; MBIA)................................................. 2,500,000 2,692,950
Chippewa Valley Schools, Refunding 7%, 5/1/2010 (Prerefunded 5/1/2001) (a)........ 1,275,000 1,424,698
Clarkston Community School 5.75%, 5/1/2016 (Insured; FGIC)........................ 1,340,000 1,347,303
Detroit:
(Development Area No. 1) 7.60%, 7/1/2010........................................ 4,150,000 4,569,067
(Unlimited Tax) 6.35%, 4/1/2014................................................. 3,325,000 3,362,539
Water Supply Systems Revenue, Refunding
8.866%, 7/1/2022 (Insured; FGIC) (b).......................................... 1,500,000 1,607,250
Dickinson County Economic Development Corp., PCR, Refunding
(Champion International Corp. Project) 5.85%, 10/1/2018......................... 2,500,000 2,436,625
Ferris State University, Revenue, Refunding 5.25%, 10/1/2020 (Insured; MBIA)...... 1,200,000 1,138,152
Grand Rapids Housing Finance Authority, Multi-Family Revenue, Refunding
7.625%, 9/1/2023 (Collateralized; FNMA)......................................... 1,000,000 1,094,380
Huron Valley School District, Refunding
Zero Coupon, 5/1/2018 (Insured; FGIC)........................................... 6,370,000 1,859,403
Iron Mountain City School District, Refunding:
5.125%, 5/1/2016 (Insured; AMBAC)............................................... 2,000,000 1,882,500
5.125%, 5/1/2021 (Insured; AMBAC)............................................... 1,000,000 931,430
Kalamazoo Hospital Finance Authority, Hospital Facilities Revenue, Refunding:
(Borgess Medical Center) 6.25%, 6/1/2014 (Insured; FGIC)........................ 2,000,000 2,171,100
(Bronson Methodist Hospital):
5.75%, 5/15/2016 (Insured; MBIA).............................................. 2,500,000 2,507,250
5.875%, 5/15/2026 (Insured; MBIA)............................................. 5,250,000 5,293,627
Kenowa Hills Public Schools 5.875%, 5/1/2021 (Insured; MBIA)...................... 3,360,000 3,398,976
Kent County, Airport Facilities Revenue (Kent County International Airport):
5.90%, 1/1/2012................................................................. 1,145,000 1,167,156
5.90%, 1/1/2013................................................................. 1,095,000 1,111,962
6.10%, 1/1/2025................................................................. 3,000,000 3,085,530
Lake Orion Community School District:
5.25%, 5/1/2021 (Insured; FSA).................................................. 1,400,000 1,327,088
Refunding 5.80%, 5/1/2015 (Insured; AMBAC)...................................... 2,085,000 2,106,997
Lapeer Economic Development Corp., Ltd. Obligation Revenue
(Lapeer Health Services Project) 8.625%, 2/1/2020 (Prerefunded 2/1/2000) (a).... 2,000,000 2,272,700
Leslie Public School (Ingham and Jackson Counties School Building and Site)
Refunding 6%, 5/1/2015 (Insured; AMBAC)......................................... 1,000,000 1,025,450
Mason Public Schools District 5.40%, 5/1/2021 (Insured; FGIC)..................... 1,260,000 1,212,826

<PAGE>
Premier State Municipal Bond Fund, Michigan Series
- ---------------------------------------------------------------------------------
Statement of Investments (continued) October 31, 1996 (Unaudited)

Principal
Long-Term Municipal Investments (continued) Amount Value
- ---------------------------------------------------------------------------------- ------------- ------------
Michigan (continued)
Michigan Building Authority, Lease Revenue 6.75%, 10/1/2007 (Insured; AMBAC)....... $ 1,600,000 $ 1,777,968
Michigan Higher Education Student Loan Authority, Student Loan Revenue:
6.875%, 10/1/2007 (Insured; AMBAC)............................................... 2,250,000 2,329,965
7.55%, 10/1/2008 (Insured; MBIA)................................................. 1,625,000 1,691,901
6.125%, 9/1/2010................................................................. 1,520,000 1,527,342
Michigan Hospital Finance Authority, HR:
(Crittenton Hospital) 6.70%, 3/1/2007............................................ 2,250,000 2,377,147
(Daughters of Charity National Health Systems--Providence Hospital) 7%, 11/1/2021 2,700,000 2,930,337
Refunding:
(Daughters of Charity National Health Systems-Providence Hospital)
5.25%, 11/1/2015............................................................. 2,200,000 2,099,526
(Detroit Medical Center) 8.125%, 8/15/2012..................................... 220,000 236,394
(Genesys Health Systems) 8.125%, 10/1/2021..................................... 5,000,000 5,592,200
(Henry Ford Health System) 5.25%, 11/15/2025................................... 2,000,000 1,887,800
(Middle Michigan Obligation Group) 6.625%, 6/1/2010............................ 2,000,000 2,052,900
(Saint John Hospital and Medical Center) 5.25%, 5/15/2026 (Insured; AMBAC)..... 3,000,000 2,810,130
(Sinai Hospital of Greater Detriot) 6.70%, 1/1/2026............................ 2,500,000 2,514,325
(Sisters of Mercy Health Corp.):
6.25%, 2/15/2009 (Insured; FSA).............................................. 1,065,000 1,123,106
5.375%, 8/15/2014 (Insured; MBIA)............................................ 1,340,000 1,318,788
Michigan Housing Development Authority:
(Home Improvement Program) 7.65%, 12/1/2012...................................... 1,755,000 1,850,314
MFHR 8.375%, 7/1/2019 (Insured; FGIC)............................................ 1,305,000 1,363,125
Rental Housing Revenue:
6.50%, 4/1/2006................................................................ 2,000,000 2,111,100
7.70%, 4/1/2023 (Insured; FSA)................................................. 4,185,000 4,456,146
SFMR:
7.55%, 12/1/2014............................................................... 105,000 105,731
7.50%, 6/1/2015................................................................ 2,355,000 2,485,797
5.95%, 12/1/2016............................................................... 2,365,000 2,381,058
7.75%, 12/1/2019............................................................... 2,010,000 2,045,919
6.95%, 12/1/2020............................................................... 1,750,000 1,852,112
Michigan Municipal Bond Authority, Revenue (State Revolving Fund):
6.50%, 10/1/2014................................................................. 2,500,000 2,814,050
6.50%, 10/1/2017................................................................. 3,500,000 3,939,670
5.625%, 10/1/2019................................................................ 2,000,000 1,957,060
Michigan Strategic Fund:
Ltd. Obligation Revenue:
(Northeastern Community Mental Health Foundation) 8.25%, 1/1/2009.............. 1,495,000 1,566,057
Refunding (Ledyard Association Ltd. Partnership Project)
6.25%, 10/1/2011 (Insured; ITT Lyndon Property Insurance Co.)................ 3,075,000 3,201,382
SWDR, Refunding (Genesee Power Station Project) 7.50%, 1/1/2021................ 3,000,000 2,997,210

Premier State Municipal Bond Fund, Michigan Series
- ---------------------------------------------------------------------------
Statement of Investments (continued) October 31, 1996 (Unaudited)

Principal
Long-Term Municipal Investments (continued) Amount Value
- ---------------------------------------------------------------------------------- ------------- ------------
Michigan (continued)
Monroe County:
PCR (Detroit Edison Project):
7.50%, 12/1/2019 (Insured; AMBAC)............................................. $ 4,650,000 $ 5,159,501
7.875%, 12/1/2019............................................................. 2,720,000 2,957,184
7.65%, 9/1/2020 (Insured; FGIC)............................................... 2,250,000 2,488,928
6.55%, 6/1/2024 (Insured; MBIA)............................................... 1,700,000 1,823,607
Water Supply Systems (Frenchtown Charter Township Water Treatment
and Distribution Systems) 6.50%, 5/1/2013..................................... 2,500,000 2,707,700
Monroe County Economic Development Corp., Ltd. Obligation Refunding, Revenue
(Detroit Edison Co. Project) 6.95%, 9/1/2022 (Insured; FGIC).................... 2,000,000 2,411,440
Nice Community School District of Marquette and Baraga Counties
5.25%, 5/1/2016 (Insured; MBIA)................................................. 1,450,000 1,382,807
Northville, Special Assessment (Wayne County) 7.875%, 1/1/2006.................... 1,685,000 1,823,018
Northwestern Michigan College, Community College Improvement Revenue, Refunding
7%, 7/1/2011.................................................................... 1,800,000 1,948,014
Novi Community School District 5.30%, 5/1/2021 (Insured; FGIC).................... 6,600,000 6,282,936
Oakland County Economic Development Corp., Ltd. Obligation Revenue
(Pontiac Osteopathic Hospital Project)
9.625%, 1/1/2020 (Prerefunded 1/1/2000) (a)..................................... 1,630,000 1,902,389
Oxford Area Community School District, Building and Site
5.40%, 5/1/2025 (Insured; FGIC)................................................. 1,000,000 960,010
Riverview Community School District, Refunding:
5.25%, 5/1/2014 (Insured; AMBAC)................................................ 1,000,000 961,810
5.25%, 5/1/2021 (Insured; AMBAC)................................................ 2,000,000 1,890,760
Rockford Public Schools, Refunding (Kent County School Building and Site)
7.375%, 5/1/2019 (Prerefunded 5/1/2000) (a)..................................... 2,000,000 2,207,900
Romulus Community Schools, Refunding
5.125%, 5/1/2017 (Insured; FGIC)................................................ 4,650,000 4,369,233
Romulus Economic Development Corp., Ltd. Obligation EDR
Refunding (Romulus Hir Ltd. Partnership Project)
7%, 11/1/2015 (Insured; ITT Lyndon Property Insurance Co.)...................... 3,700,000 4,099,119
South Lyon Community Schools (School Building) 6.375%, 5/1/2018................... 1,500,000 1,577,610
Wayne Charter County, Special Airport Facilities Revenue, Refunding
(Northwest Airlines Inc.) 6.75%, 12/1/2015...................................... 5,750,000 5,874,200

U.S. Related--1.5%
Puerto Rico Housing Finance Corp., MFMR
7.50%, 4/1/2022 (LOC; Government Development Bank) (c).......................... 2,510,000 2,654,425
------------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $170,794,465)............................................................. $180,404,635
------------
------------

Premier State Municipal Bond Fund, Michigan Series
- -------------------------------------------------------------------------------
Statement of Investments (continued) October 31, 1996 (Unaudited)

Principal
Short-Term Municipal Investments--1.1% Amount Value
- ---------------------------------------------------------------------------------- ------------- ------------
Michigan:
Michigan Strategic Fund, Limited Obligation Revenue, Refunding, VRDN
(Detriot Edison Co.) 3.55% (LOC; Barclays Bank) (c,d)
(cost $2,000,000)............................................................... $ 2,000,000 $ 2,000,000
------------
------------

TOTAL INVESTMENTS--100.0%
(cost $172,794,465)............................................................. $182,404,635
------------
------------
</TABLE>

Summary of Abbreviations

<TABLE>

<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation MBIA Municipal Bond Investors Assurance
EDR Economic Development Revenue Insurance Corporation
FGIC Financial Guaranty Insurance Company MFHR Multi-Family Housing Revenue
FNMA Federal National Mortgage Association MFMR Multi-Family Mortgage Revenue
FSA Financial Security Assurance PCR Pollution Control Revenue
HR Hospital Revenue SFMR Single Family Mortgage Revenue
LOC Letter of Credit SWDR Solid Waste Disposal Revenue
VRDN Variable Rate Demand Notes

</TABLE>

Summary of Combined Ratings

<S> <C> <C> <C> <C> <C>
Fitch (e) or Moody's or Standard & Poor's Percentage of Value
- --------- ------- ----------------- -------------------
AAA Aaa AAA 45.8%
AA Aa AA 15.8
A A A 14.1
BBB Baa BBB 10.5
F1 MIG1 SP1 1.1
Not Rated (f) Not Rated (f) Not Rated (f) 12.7
------
100.0%
------
------

<FN>
Notes to Statement of Investments:
(a) Bonds which are prerefunded are collateralized by U.S. Government
securities which are held in escrow and are used to pay principal
and interest on the municipal issue and to retire the bonds in full
at the earliest refunding date.
(b) Inverse floater security--the interest rate is subject to change
periodically.
(c) Secured by letters of credit.
(d) Security payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest
rates.
(e) Fitch currently provides creditworthiness information for a limited
number of investments.
(f) Securities which, while not rated by Fitch, Moody's or Standard & Poor's
have been determined by the Manager to be of comparable quality to those
rated securities in which the Fund may invest.
(g) At October 31, 1996, the Fund had $48,472,869 (26.2% of net assets)
invested in securities whose payment of principal and interest is
dependent upon revenues generated from city municipal projects.
</FN>
</TABLE>

See notes to financial statements.

Premier State Municipal Bond Fund, Michigan Series
- ----------------------------------------------------------------------
Statement of Assets and Liabilities October 31, 1996 (Unaudited)

<TABLE>
<CAPTION>
Cost Value
------------ ------------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments................ $172,794,465 $182,404,635
Receivable for shares of Beneficial Interest subscribed................ 3,612,532
Interest receivable.................................................... 12,467
Prepaid expenses....................................................... 4,511
------------
186,034,145
------------
LIABILITIES: Due to The Dreyfus Corporation and affiliates.......................... 92,738
Due to Distributor..................................................... 8,411
Cash overdraft due to Custodian........................................ 828,315
Payable for shares of Beneficial Interest redeemed..................... 92,225
Accrued expenses....................................................... 69,408
------------
1,091,097
------------
NET ASSETS............................................................................... $184,943,048
------------
------------
REPRESENTED BY: Paid-in capital........................................................ $173,588,280
Accumulated net realized gain (loss) on investments.................... 1,744,598
Accumulated net unrealized appreciation (depreciation)
on investments--Note 3............................................... 9,610,170
------------
NET ASSETS............................................................................... $184,943,048
------------
------------
</TABLE>
NET ASSET VALUE PER SHARE
-------------------------
<TABLE>
<CAPTION>
Class A Class B Class C
------------ ----------- --------
<S> <C> <C> <C>
Net Assets.................................................... $165,186,328 $19,538,146 $218,574
Shares Outstanding............................................ 10,674,205 1,262,774 14,120
NET ASSET VALUE PER SHARE..................................... $15.48 $15.47 $15.48
------ ------ ------
------ ------ ------

</TABLE>

See notes to financial statements.

<PAGE>
Premier State Municipal Bond Fund, Michigan Series
- ----------------------------------------------------------------------
Statement of Operations Six Months Ended October 31, 1996 (Unaudited)

INVESTMENT INCOME

<S> <C> <C> <C>
INCOME Interest Income................................ $5,830,359

EXPENSES: Management fee--Note 2(a)...................... $ 511,573
Shareholder servicing costs--Note 2(c)......... 299,288
Distribution fees--Note 2(b)................... 49,269
Audit fee...................................... 12,527
Custodian fees................................. 10,030
Prospectus and shareholders' reports........... 7,771
Legal fees..................................... 1,365
Registration fees.............................. 1,344
Trustees' fees and expenses--Note 2(d)......... 1,024
Miscellaneous.................................. 10,950
----------
Total Expenses............................. 905,141
----------
INVESTMENT INCOME--NET............................................. 4,925,218
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 3:

Net realized gain (loss) on investments........ $ (853,599)
Net unrealized appreciation (depreciation) on
investments.................................. 4,778,389
----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS............. 3,924,790
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............... $8,850,008
----------
----------
</TABLE>
See notes to financial statements.

<PAGE>
Premier State Municipal Bond Fund, Michigan Series
- -----------------------------------------------------------------
Statement of Changes in Net Assets

Six Months Ended
October 31, 1996 Year Ended
(Unaudited) April 30, 1996
---------------- --------------
<S> <C> <C>
OPERATIONS:
Investment income--net..................................................... $ 4,925,218 $ 10,289,932
Net realized gain (loss) on investments.................................... (853,599) 4,253,950
Net unrealized appreciation (depreciation) on investments.................. 4,778,389 (1,629,095)
------------ ------------
Net Increase (Decrease) in Net Assets Resulting from Operations.......... 8,850,008 12,914,787
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Class A shares........................................................... (4,451,161) (9,401,220)
Class B shares........................................................... (469,599) (886,953)
Class C shares........................................................... (4,458) (1,759)
Net realized gain on investments:
Class A shares........................................................... -- (2,113,095)
Class B shares........................................................... -- (230,061)
Class C shares........................................................... -- (13)
------------ ------------
Total Dividends........................................................ (4,925,218) (12,633,101)
------------ ------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares........................................................... 3,518,495 6,590,274
Class B shares........................................................... 1,374,837 4,290,323
Class C shares........................................................... 177,813 135,546
Dividends reinvested:
Class A shares........................................................... 2,524,123 6,818,746
Class B shares........................................................... 279,056 688,066
Class C shares........................................................... 2,592 1,816
Cost of shares redeemed:
Class A shares........................................................... (10,898,425) (23,824,458)
Class B shares........................................................... (1,562,899) (2,354,777)
Class C shares........................................................... (99,257) --
------------ ------------
Increase (Decrease) in Net Assets from Beneficial Interest Transactions (4,683,665) (7,654,464)
------------ ------------
Total Increase (Decrease) in Net Assets.............................. (758,875) (7,372,778)

NET ASSETS:
Beginning of Period........................................................ 185,701,923 193,074,701
------------ ------------
End of Period.............................................................. $184,943,048 $185,701,923
------------ ------------
------------ ------------
</TABLE>

See notes to financial statements.
<PAGE>
Premier State Municipal Bond Fund, Michigan Series
- -----------------------------------------------------------------
Statement of Changes in Net Assets (continued)

Shares
------------------------------------
Six Months Ended
October 31, 1996 Year Ended
(Unaudited) April 30, 1996
---------------- ---------------
<S> <C> <C>
CAPITAL SHARE TRANSACTIONS:

Class A
-------
Shares sold............................................................... 230,819 424,521
Shares issued for dividends reinvested.................................... 164,995 437,436
Shares redeemed........................................................... (714,000) (1,537,548)
-------- ----------
Net Increase (Decrease) in Shares Outstanding....... (318,186) (675,591)
-------- ----------
-------- ----------
Class B
-------
Shares sold............................................................... 90,269 276,378
Shares issued for dividends reinvested.................................... 18,250 44,106
Shares redeemed........................................................... (101,986) (152,659)
-------- ----------
Net Increase (Decrease) in Shares Outstanding....... 6,533 167,825
-------- ----------
-------- ----------
Class C*
--------
Shares sold............................................................... 11,734 8,647
Shares issued for dividends reinvested.................................... 170 117
Shares redeemed........................................................... (6,548) --
-------- ----------
Net Increase (Decrease) in Shares Outstanding....... 5,356 8,764
-------- ----------
-------- ----------
<FN>
* From August 15, 1995 (commencement of initial offering) to April 30, 1996.
</FN>
</TABLE>

See notes to financial statements.

<PAGE>
Premier State Municipal Bond Fund, Michigan Series
- -----------------------------------------------------------
Financial Highlights

Contained below is per share operating performance data for a share
of Beneficial Interest outstanding, total investment return, ratios to
average net assets and other supplemental data for each period indicated.
This information has been derived from the Fund's financial statements.

Class A Shares
-------------------------------------------------------------------
Six Months Ended
October 31, 1996 Year Ended April 30,
----------------------------------------------
PER SHARE DATA: (Unaudited) 1996 1995 1994 1993 1992
----------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period............ $15.15 $15.14 $15.27 $15.65 $14.80 $14.34
------ ------ ------ ------ ------ ------
Investment Operations:
Investment income--net.......................... .41 .83 .85 .89 .92 .95
Net realized and unrealized gain (loss)
on investments................................ .33 .20 .11 (.30) .98 .46
------ ------ ------ ------ ------ ------
Total from Investment Operations................ .74 1.03 .96 .59 1.90 1.41
------ ------ ------ ------ ------ ------
Distributions:
Dividends from investment income--net........... (.41) (.83) (.85) (.89) (.92) (.95)
Dividends from net realized gain on investments. -- (.19) (.24) (.08) (.13) --
------ ------ ------ ------ ------ ------
Total Distributions............................. (.41) (1.02) (1.09) (.97) (1.05) (.95)
------ ------ ------ ------ ------ ------
Net asset value, end of period.................. $15.48 $15.15 $15.14 $15.27 $15.65 $14.80
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
TOTAL INVESTMENT RETURN(1)........................ 9.84%(2) 6.81% 6.65% 3.65% 13.25% 10.12%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets......... .92%(2) .93% .92% .81% .69% .53%
Ratio of net investment income
to average net assets......................... 5.35%(2) 5.35% 5.66% 5.56% 6.01% 6.47%
Decrease reflected in above expense ratios
due to undertakings by the Manager............ -- -- .01% .11% .25% .42%
Portfolio Turnover Rate......................... 17.29%(3) 56.88% 48.30% 19.96% 14.99% 21.42%
Net Assets, end of period (000's Omitted)....... $165,186 $166,538 $176,604 $187,405 $184,138 $145,159

<FN>
- ---------------------------
(1) Exclusive of sales load.
(2) Annualized.
(3) Not annualized.
</FN>
</TABLE>

See notes to financial statements.

<PAGE>
Premier State Municipal Bond Fund, Michigan Series
- ---------------------------------------------------------------------------
Financial Highlights (continued)

Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.

Class B Shares
-------------------------------------------------------------------
Six Months Ended
October 31, 1996 Year Ended April 30,
----------------------------------------------
PER SHARE DATA: (Unaudited) 1996 1995 1994 1993(1)
----------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.............. $15.15 $15.13 $15.27 $15.64 $15.20
------ ------ ------ ------ ------
Investment Operations:
Investment income--net............................ .37 .75 .77 .80 .24
Net realized and unrealized gain (loss)
on investments.................................. .32 .21 .10 (.29) .44
------ ------ ------ ------ ------
Total from Investment Operations.................. .69 .96 .87 .51 .68
------ ------ ------ ------ ------
Distributions:
Dividends from investment income--net............. (.37) (.75) (.77) (.80) (.24)
Dividends from net realized gain on investments... -- (.19) (.24) (.08) --
------ ------ ------ ------ ------
Total Distributions............................... (.37) (.94) (1.01) (.88) (.24)
------ ------ ------ ------ ------
Net asset value, end of period.................... $15.47 $15.15 $15.13 $15.27 $15.64
------ ------ ------ ------ ------
------ ------ ------ ------ ------
TOTAL INVESTMENT RETURN(2).......................... 9.16%(3) 6.33% 6.01% 3.11% 15.50%(3)

RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets........... 1.43%(3) 1.44% 1.44% 1.38% 1.18%(3)
Ratio of net investment income
to average net assets........................... 4.84%(3) 4.82% 5.10% 4.88% 4.85%(3)
Decrease reflected in above expense ratios
due to undertakings by the Manager.............. -- -- .01% .09% .14%(3)
Portfolio Turnover Rate........................... 17.29%(4) 56.88% 48.30% 19.96% 14.99%(4)
Net Assets, end of period (000's Omitted)......... $19,538 $19,031 $16,471 $13,861 $3,581

<FN>
(1) From January 15, 1993 (commencement of initial offering)
to April 30, 1993.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
</FN>
</TABLE>

See notes to financial statements.

Premier State Municipal Bond Fund, Michigan Series
- ------------------------------------------------------
Financial Highlights (continued)

Contained below is per share operating performance data
for a share of Beneficial Interest outstanding, total investment
return, ratios to average net assets and other supplemental data
for each period indicated. This information has been derived from
the Fund's financial statements.

Class C Shares
-----------------------------------
Six Months Ended
October 31, 1996 Year Ended
PER SHARE DATA: (Unaudited) April 30, 1996(1)
---------------- -----------------
<S> <C> <C>
Net asset value, beginning of period.................................... $15.16 $15.18
------ ------
Investment Operations:
Investment income--net.................................................. .35 .50
Net realized and unrealized gain (loss)
on investments........................................................ .32 .17
------ ------

Total from Investment Operations....................................... .67 .67
------ ------
Distributions:
Dividends from investment income--net................................... (.35) (.50)
Dividends from net realized gain on investments......................... -- (.19)
------ ------
Total Distributions..................................................... (.35) (.69)
------ ------
Net asset value, end of period.......................................... $15.48 $15.16
------ ------
------ ------
TOTAL INVESTMENT RETURN(2)................................................ 8.85%(3) 6.12%(3)

RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets................................. 1.71%(3) 1.70%(3)
Ratio of net investment income
to average net assets................................................. 4.45%(3) 4.47%(3)
Portfolio Turnover Rate................................................. 17.29%(4) 56.88%
Net Assets, end of period (000's Omitted)............................... $219 $133

<FN>
(1) From August 15, 1995 (commencement of initial
offering) to April 30, 1996.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
</FN>
</TABLE>

See notes to financial statements.

<PAGE>
Premier State Municipal Bond Fund, Michigan Series
- ---------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)

NOTE 1--Significant Accounting Policies:

Premier State Municipal Bond Fund (the "Trust") is registered under the
Investment Company Act of 1940 ("Act") as a non-diversified open-end management
investment company and operates as a series company currently offering twelve
series including the Michigan Series (the "Fund"). The Fund's investment
objective is to maximize current income exempt from Federal and, where
applicable, from State income taxes, without undue risk. The Dreyfus
Corporation ("Manager") serves as the Fund's investment adviser. The Manager is
a direct subsidiary of Mellon Bank, N.A.

(a) Portfolio valuation: The Fund's investments (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service ("Service") approved by the
Board of Trustees. Investments for which quoted bid prices are readily
available and are representative of the bid side of the market in the judgment
of the Service are valued at the mean between the quoted bid prices (as
obtained by the Service from dealers in such securities) and asked prices (as
calculated by the Service based upon its evaluation of the market for such
securities). Other investments (which constitute a majority of the portfolio
securities) are carried at fair value as determined by the Service, based on
methods which include consideration of: yields or prices of municipal
securities of comparable quality, coupon, maturity and type; indications as to
values from dealers; and general market conditions. Options and financial
futures on municipal and U.S. treasury securities are valued at the last sales
price on the securities exchange on which such securities are primarily traded
or at the last sales price on the national securities market on each business
day. Investments not listed on an exchange or the national securities market,
or securities for which there were no transactions, are valued at the average
of the most recent bid and asked prices. Bid price is used when no asked price
is available.

(b) Securities transactions and investment income: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income, adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual
basis. Securities purchased or sold on a when-issued or delayed-delivery basis
may be settled a month or more after the trade date.

NOTE 2--Management Fee and Other Transactions With Affiliates:

(a) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .55 of 1% of the value of
the Funds' average daily net assets and is payable monthly. The Agreement
provides that if in any full fiscal year the aggregate expenses, exclusive of
taxes, brokerage, interest on borrowings and extraordinary expenses, exceed the
expense limitation of any state having jurisdiction over the Fund, the Fund may
deduct from payments to be made to the Manager, or the Manager will bear the
amount of such excess to the extent required by state law. There was no expense
reimbursement during the period ended October 31, 1996.

Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager,
retained $134 during the period ended October 31, 1996, from commissions earned
on sales of the Fund's shares.

(b) Under the Distribution Plan adopted pursuant to Rule 12b-1 under
the Act, the Fund pays the Distributor for distributing the Fund's Class B and
Class C shares at an annual rate of .50 of 1% of the value of the average daily
net assets of Class B shares and .75 of 1% of the value of the average daily
net assets of Class C shares. During the period ended October 31, 1996, $48,517
was charged to the Fund for the Class B shares and $752 was charged to the Fund
for the Class C shares.

(c) Under the Shareholder Services Plan, the Fund pays the Distributor
at an annual rate of .25 of 1% of the value of the average daily net assets of
Class A, Class B and Class C shares for the provision of certain services. The
services provided may include personal services relating to shareholder
accounts, such as answering shareholder inquiries regarding the Fund and
providing reports and other information, and services related to the
maintenance of shareholder accounts. The Distributor may make payments to
Service Agents (a securities dealer, financial institution or other industry
professional) in respect of these services. The Distributor determines the
amounts to be paid to Service Agents. During the period ended October 31, 1996,
$208,024, $24,252 and $251 were charged to Class A, B and C shares,
respectively, by the Distributor pursuant to the Shareholder Services Plan.

NOTE 3--Securities Transactions:

The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended October 31, 1996
amounted to $31,092,110 and $35,153,126, respectively.

At October 31, 1996, accumulated net unrealized appreciation on
investments was $9,610,170, consisting of $9,966,337 gross unrealized
appreciation and $356,167 gross unrealized depreciation.

At October 31, 1996, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).

<PAGE>
Premier State Municipal
Bond Fund, Michigan Series
200 Park Avenue
New York, NY 10166

Manager
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166

Custodian
The Bank of New York
90 Washington Street
New York, NY 10286

Transfer Agent &
Dividend Disbursing Agent
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940

Printed in U.S.A. 053/617SA9610
<PAGE>

PREMIER STATE MUNICIPAL BOND FUND, MINNESOTA SERIES
LETTER TO SHAREHOLDERS
Dear Shareholder:

We are pleased to provide you with this report on the Premier State
Municipal Bond Fund-Minnesota Series. For its semi-annual reporting period ended
October 31, 1996, your Series produced a total return of 4.35% for Class A
shares, 4.00% for Class B shares and, 3.87% for Class C shares.* Income
dividends, exempt from Federal and State of Minnesota personal income taxes, of
approximately $.413 for Class A shares, $.373 for Class B shares and $.354 for
Class C shares were paid.** This amounts to annualized tax-free distribution
rates per share of 5.14%, 4.86% and 4.61% for Class A, Class B and Class C
shares, respectively.*** THE ECONOMY

The increase in long-term interest rates early this year may have
contributed to the recently reported slowdown in the rate of economic growth.
During the third quarter, the growth rate of the Gross Domestic Product cooled
to 2.2%, less than half the second quarter's strong 4.7% pace. Consumers the
initiators of two thirds of all economic activity remained cautious throughout
the year. In the third quarter, the pace of consumer spending was at its slowest
in five years. Consumer borrowing has also declined from year-ago levels. Not
surprisingly, retail sales growth has also been modest this year. Consumers may
have been restrained by wages not rising as rapidly as had been previously
suspected, given the strength in the labor market. The Employment Cost Index,
considered to be an important gauge of wage inflation by Federal Reserve Board
Chairman Alan Greenspan, rose just .6% in the third quarter, the lowest reading
in over a year. This brought the growth in wages to 2.8% over the past twelve
months, slightly less than the rate of inflation as measured by the Consumer
Price Index.

The booming housing market also seems to have cooled with both new housing
starts and existing home sales slackening since midyear. Industrial production
has slowed somewhat from its more rapid pace earlier in the year. Given the
level of capacity utilization, there appears to be no sign of production
bottlenecks that could push prices higher. Anecdotal evidence still supports the
assertion that corporations are reluctant to raise prices. The report that the
1996 Federal budget deficit had shrunk to $107.3 billion its lowest level in two
decades provided another favorable sign for inflation. The final reading of the
1996 deficit marks the fourth straight decline from fiscal 1992's record $290.4
billion.

THE PORTFOLIO

In managing your Series' assets during a period of such volatility a
decidedly conservative posture was maintained. During those periods when
perceptions became more tentative, emphasis was placed on those securities
bearing more muted characteristics of principal volatility and higher levels of
tax-free income. At these times, higher levels of cash reserves were established
in order to further buffer the portfolio from the consequences of a rising
interest rate environment. As perceptions became more constructive and prices
advanced, trading activity sought to extend portfolio duration in order to
capitalize on the potential price appreciation inherent in such an environment.
Throughout the entire six-month period investment decisions tended to focus on
those issues bearing higher degrees of creditworthiness and strong
characteristics of protection from redemption prior to maturity. Your Series
benefitted from this conservative strategy, producing competitive levels of
tax-free income while continuing to stress principal preservation.

We appreciate your investment in the Premier State Municipal Bond
Fund-Minnesota Series, and we look forward to continuing to serve your
investment needs.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation

November 22, 1996 New York, N.Y.

** Some income may be subject to the Federal Alternative Minimum Tax (AMT)
for certain shareholders.

***Distribution rate per share is based upon dividends per share paid from
net investment income during the period (annualized), divided by the maximum
offering price, in the case of Class A shares, or the net asset value per share,
in the case of Class B and Class C shares, at the end of the period.

PREMIER STATE MUNICIPAL BOND FUND, MINNESOTA SERIES
STATEMENT OF INVESTMENTS OCTOBER 31, 1996 (UNAUDITED)
Principal
Long-Term Municipal Investments-100.0% Amount Value
------- -------
Anoka County:
<S> <C> <C>

RRR (Northern States Power Co.) 7.15%, 12/1/2008.......................... $ 1,150,000 $ 1,232,524
SWDR (United Power Association Project)
6.95%, 12/1/2008 (Guaranteed; National Rural Utilities Cooperative Finance Corp.) 3,825,000 4,087,204
Brooklyn Park 5.85%, 2/1/2016 (Insured; FSA)................................ 1,425,000 1,448,755
Burnsville, MFHR Refunding (Conventry Court Apartments) 7.50%, 9/1/2027 (Insured; FHA) 2,250,000 2,360,722
Burnsville Independent School District Number 191 5.125%, 2/1/2015.......... 3,875,000 3,736,702
Dakota County Housing and Redevelopment Authority, South-Saint Paul Revenue
Refunding
(Single Family-GNMA Program) 8.10%, 9/1/2012.............................. 130,000 137,515
Duluth Economic Development Authority, Health Care Facilities Revenue
(Benedictine Health-Saint Mary's Project)
8.375%, 2/15/2020 (Prerefunded 2/15/2000) (a)............................. 2,500,000 2,846,600
Eagan, MFHR Refunding (Forest Ridge Apartments) 7.50%, 9/1/2017 (Insured; FHA) 1,000,000 1,055,880
Eden Prairie, MFHR Refunding:
(Eden Investments Project) 7.40%, 8/1/2025 (Insured; FHA)................. 500,000 526,315
(Welsh Parkway Apartments) 8%, 7/1/2026 (Insured; FHA).................... 2,840,000 3,067,768
Edina:
Hospital Systems Revenue (Fairview Hospital) 7.125%, 7/1/2006............. 1,000,000 1,070,260
Housing Development Revenue Refunding (Edina Park Plaza Project)
7.70%, 12/1/2028 (Insured; FHA)......................................... 2,500,000 2,634,200
Hubbard County, SWDR (Potlatch Corp. Project) 7.375%, 8/1/2013.............. 1,000,000 1,070,850
Inver Grove Heights Independent School District Number 199 5.75%, 2/1/2017.. 2,225,000 2,249,430
Lakeville Independent School District, Refunding 5.125%, 2/1/2013 (Insured; MBIA) 2,000,000 1,916,820
Mahtomedi Independent School District Number 832
Zero Coupon, 2/1/2017 (Insured; MBIA)..................................... 1,275,000 401,918
Minneapolis:
Zero Coupon, 12/1/2014.................................................... 1,825,000 660,504
Home Ownership Program 7.10%, 6/1/2021.................................... 730,000 766,186
HR (Lifespan Inc.-Minneapolis Children's Medical Center Project)
7%, 12/1/2020 (Prerefunded 6/1/2001) (a)................................ 5,650,000 6,322,237
MFHR Refunding (Churchill Apartments Project) 7.05%, 10/1/2022 (Insured; FSA) 4,000,000 4,193,200
MFMR (Seward Towers Project) 7.375%, 12/20/2030 (Collateralized; GNMA).... 2,350,000 2,491,822
Refunding (Sports Arena Project) 5.20%, 10/1/2024......................... 7,500,000 7,206,300
Minneapolis Community Development Agency, Ltd. Tax Support
Development Revenue:
8.375%, 6/1/2007........................................................ 2,500,000 2,683,925
8%, 12/1/2009........................................................... 300,000 316,818
7.75%, 12/1/2019........................................................ 2,850,000 3,160,878
7.40%, 12/1/2021........................................................ 2,000,000 2,182,320
Minneapolis-Saint Paul Housing and Redevelopment Authority,
Health Care Systems Revenue:
8%, 8/15/2014 (Prerefunded 8/15/2000) (a)............................... 3,000,000 3,422,010
(Group Health Plan Inc., Project) 6.75%, 12/1/2013...................... 2,750,000 2,986,665

PREMIER STATE MUNICIPAL BOND FUND, MINNESOTA SERIES
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1996 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
------- -------
Minneapolis-Saint Paul Housing Finance Board, SFMR:
8.875%, 11/1/2018 (Collateralized; GNMA).................................. $ 115,000 $ 118,336
8.30%, 8/1/2021 (Collateralized; GNMA).................................... 350,000 366,110
7.30%, 8/1/2031 (Collateralized; GNMA).................................... 6,135,000 6,450,094
Minneapolis-Saint Paul Metropolitan Apartments Community 7.80%, 1/1/2014.... 3,000,000 3,275,040
Minneapolis Special School District Number 001, COP
5.90%, 2/1/2017 (Insured; MBIA)........................................... 4,400,000 4,508,196
State of Minnesota (Duluth Airport) 6.25%, 8/1/2014......................... 2,500,000 2,634,800
Minnesota Agricultural and Economic Development Board,
Minnesota Small Business Development Loan Revenue:
9%, Series B, 8/1/2008.................................................. 75,000 77,159
9%, Series C, 8/1/2008.................................................. 245,000 252,054
8.125%, Lot 2, 8/1/2009................................................. 500,000 515,760
8.125%, Lot 3, 8/1/2009................................................. 15,000 840,689
8.20%, 8/1/2009......................................................... 655,000 693,711
8.375%, 8/1/2010........................................................ 1,385,000 1,457,075
Minnesota Housing Finance Agency, Revenue:
Rental Housing 6.10%, 8/1/2009............................................ 2,585,000 2,612,194
Single Family Mortgage:
7.35%, 7/1/2016......................................................... 1,495,000 1,582,323
7.30%, 1/1/2017......................................................... 45,000 893,546
7.90%, 7/1/2019......................................................... 1,540,000 1,610,193
7.45%, 7/1/2022 (Insured; FHA).......................................... 2,830,000 2,974,698
7.95%, 7/1/2022......................................................... 1,640,000 1,736,694
6.95%, 7/1/2026......................................................... 2,940,000 3,081,620
Minnesota Public Facilities Authority, Water Pollution Control Revenue:
7.10%, 3/1/2012 (Prerefunded 3/1/2000) (a)................................ 2,350,000 2,591,204
6.95%, 3/1/2013 (Prerefunded 3/1/2001) (a)................................ 3,000,000 3,343,860
6.50%, 3/1/2014........................................................... 5,200,000 5,616,520
New Prague Independent School District 5%, 2/1/2016 (Insured; MBIA)......... 2,000,000 1,894,500
Northern Municipal Power Agency, Electric System Revenue Refunding
7.25%, 1/1/2016........................................................... 3,500,000 3,727,220
North Saint Paul Maplewood Independent School District, Refunding 5.125%, 2/1/2025 2,500,000 2,344,050
Ramsey County:
5.375%, 2/1/2015.......................................................... 1,100,000 1,084,182
5.375%, 2/1/2016.......................................................... 1,160,000 1,142,809
City of Red Wing, Health Care Facilities Revenue Refunding
(River Region Obligation Group) 6.50%, 9/1/2022........................... 3,445,000 3,504,495
Saint Cloud, Hospital Facilities Revenue (The Saint Cloud Hospital):
7%, 7/1/2020 (Insured; AMBAC) (Prerefunded 7/1/2001) (a).................. 1,000,000 1,120,570
Refunding 5%, 7/1/2015 (Insured; AMBAC)................................... 2,090,000 1,944,641
Saint Paul Housing and Redevelopment Authority, SFMR
Refunding 6.90%, 12/1/2021 (Insured; FNMA)................................ 2,705,000 2,824,642

PREMIER STATE MUNICIPAL BOND FUND, MINNESOTA SERIES
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1996 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
------- -------
Saint Paul Independent School District Number 625:
5%, 2/1/2014.............................................................. $ 1,000,000 $ 971,900
COP 5.25%, 2/1/2015....................................................... 1,450,000 1,373,629
Saint Paul Port Authority:
IDR Refunding (Hampden Building Project) 9.25%, 6/1/2011.................. 1,065,000 981,877
Tax Increment Revenue (Energy Park Project) 5%, 2/1/2008 (Insured; FSA)... 5,495,000 5,356,196
Sartell, PCR Refunding (Champion International Corp. Project) 6.95%, 10/1/2012 5,000,000 5,334,900
Seaway Port Authority of Duluth,
Industrial Development Dock and Wharf Revenues Refunding (Cargill Inc.
Project)
6.80%, 5/1/2012........................................................... 3,000,000 3,273,060
Southern Minnesota Municipal Power Agency, Power Supply System Revenue:
Zero Coupon, 1/1/2025 (Insured; MBIA)..................................... 5,255,000 1,027,247
Zero Coupon, 1/1/2026 (Insured; MBIA)..................................... 15,530,000 2,864,819
Refunding Zero Coupon, 1/1/2027 (Insured; MBIA)........................... 4,800,000 835,584
Western Minnesota Municipal Power Agency, Electric Power & Light Revenue
Refunding 5.50%, 1/1/2012 (Insured; AMBAC)................................ 1,000,000 1,001,160
-------
TOTAL INVESTMENTS
(cost $147,892,196)....................................................... $156,075,685
=======
</TABLE>
<TABLE>
<CAPTION>

PREMIER STATE MUNICIPAL BOND FUND, MINNESOTA SERIES
<S> <C> <C> <C>

Summary of Abbreviations
AMBAC American Municipal Bond Assurance Corporation MBIA Municipal Bond Investors Assurance
COP Certificates of Participation Insurance Corporation
FHA Federal Housing Administration MFHR Multi-Family Housing Revenue
FNMA Federal National Mortgage Association MFMR Multi-Family Mortgage Revenue
FSA Financial Security Assurance PCR Pollution Control Revenue
GNMA Government National Mortgage Association RRR Resources Recovery Revenue
HR Hospital Revenue SFMR Single Family Mortgage Revenue
IDR Industrial Development Revenue SWDR Solid Waste Disposal Revenue
</TABLE>

Summary of Combined Ratings (Unaudited)
Fitch (b) or Moody's or Standard & Poor's Percentage of Value
- ---- ---- --------- ----------
<S> <C> <C> <C>

AAA Aaa AAA 56.7%
AA Aa AA 23.6
A A A 5.7
BBB Bbb BBB 11.0
Not Rated(c) Not Rated(c) Not Rated(c) 3.0
----
100.0%
====
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, MINNESOTA SERIES
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1996 (UNAUDITED)
<S> <C> <C> <C>
Cost Value
------- -------
ASSETS: Investments in securities-See Statement of Investments $147,892,196 $156,075,685
Interest receivable........................ 2,785,604
Receivable for shares of Beneficial Interest subscribed 34,711
Prepaid expenses........................... 3,323
-------
158,899,323
-------
LIABILITIES: Due to The Dreyfus Corporation and affiliates 79,496
Due to Distributor......................... 11,342
Cash overdraft due to Custodian............ 660,338
Payable for shares of Beneficial Interest redeemed 114,588
Accrued expenses........................... 44,380
-------
910,144
-------
NET ASSETS.................................................................. $157,989,179
=======
REPRESENTED BY: Paid-in capital............................ $150,161,014
Accumulated net realized gain (loss) on investments (355,324)
Accumulated net unrealized appreciation (depreciation)
..on investments-Note 3 ..................... 8,183,489
-------
NET ASSETS.................................................................. $157,989,179
=======
</TABLE>

NET ASSET VALUE PER SHARE
-----------------

Class A Class B Class C
------- ------- -------
<S> <C> <C> <C>

Net Assets.................................................. $131,404,646 $26,197,334 $387,199
Shares Outstanding.......................................... 8,641,519 1,720,087 25,422
NET ASSET VALUE PER SHARE................................... $15.21 $15.23 $15.23
=== === ===
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.
<S> <C> <C> <C>

PREMIER STATE MUNICIPAL BOND FUND, MINNESOTA SERIES
STATEMENT OF OPERATIONS SIX MONTHS ENDED OCTOBER 31, 1996 (UNAUDITED)
INVESTMENT INCOME
INCOME Interest Income............................ $5,162,232
EXPENSES: Management fee-Note 2(a)................... $ 447,368
Shareholder servicing costs-Note 2(c)...... 254,265
Distribution fees-Note 2(b)................ 66,563
Custodian fees............................. 10,431
Audit fees................................. 10,073
Prospectus and shareholders' reports....... 9,475
Legal fees................................. 6,357
Registration fees.......................... 991
Trustees' fees and expenses-Note 2(d)...... 897
Miscellaneous.............................. 2,509
------
Total Expenses......................... 808,929
------
INVESTMENT INCOME-NET....................................................... 4,353,303
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 3:
Net realized gain (loss) on investments.... $ (723,952)
Net unrealized appreciation (depreciation) on investments 3,136,001
------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 2,412,049
------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $6,765,352
======
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, MINNESOTA SERIES
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
October 31, 1996 Year Ended
(Unaudited) April 30, 1996
--------- ---------
OPERATIONS:
<S> <C> <C>

Investment income-net.................................................. $ 4,353,303 $ 8,958,989
Net realized gain (loss) on investments................................ (723,952) 1,903,251
Net unrealized appreciation (depreciation) on investments.............. 3,136,001 (911,785)
------- -------
Net Increase (Decrease) in Net Assets Resulting from Operations.... 6,765,352 9,950,455
------- -------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net:
Class A shares....................................................... (3,704,376) (7,756,084)
Class B shares....................................................... (640,048) (1,199,994)
Class C shares....................................................... (8,879) (2,911)
------- -------
Total Dividends.................................................... (4,353,303) (8,958,989)
------- -------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares....................................................... 2,028,830 8,018,049
Class B shares....................................................... 1,236,111 4,260,990
Class C shares....................................................... _- 376,197
Dividends reinvested:
Class A shares....................................................... 2,385,226 5,052,267
Class B shares....................................................... 418,515 781,540
Class C shares....................................................... 8,879 2,715
Cost of shares redeemed:
Class A shares....................................................... (13,092,679) (21,377,789)
Class B shares....................................................... (1,455,097) (2,719,337)
------- -------
Increase (Decrease) in Net Assets from Beneficial Interest Transactions (8,470,215) (5,605,368)
------- -------
Total Increase (Decrease) in Net Assets.......................... (6,058,166) (4,613,902)
NET ASSETS:
Beginning of Period.................................................... 164,047,345 168,661,247
------- -------
End of Period.......................................................... $157,989,179 $164,047,345
======= =======
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, MINNESOTA SERIES
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Shares
--------------------------------------
Six Months Ended
October 31, 1996 Year Ended
(Unaudited) April 30, 1996
--------- --------
CAPITAL SHARE TRANSACTIONS:
Class A
----
<S> <C> <C>

Shares sold............................................................ 134,787 525,972
Shares issued for dividends reinvested................................. 158,256 331,830
Shares redeemed........................................................ (864,946) (1,405,368)
------ -----
Net Increase (Decrease) in Shares Outstanding (571,903) (547,566)
====== =====
Class B
----
Shares sold............................................................ 81,980 279,091
Shares issued for dividends reinvested................................. 27,726 51,250
Shares redeemed........................................................ (96,479) (179,050)
------ -----

Net Increase (Decrease) in Shares
Outstanding ................................... 13,227 151,291
====== =====
Class C*
-----
Shares sold............................................................ _- 24,654
Shares issued for dividends reinvested................................. 588 180
------ -----
Net Increase (Decrease) in Shares Outstanding 588 24,834
====== =====
*From August 15, 1995 (commencement of initial offering) to April 30, 1996.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, MINNESOTA SERIES
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>

Class A Shares
-------------------------------------------------------
Six Months Ended
October 31, 1996 Year Ended April 30,
----------------------------------------------------
PER SHARE DATA: (Unaudited) 1996 1995 1994 1993 1992
----- --- --- --- --- ----
<S> <C> <C> <C> <C> <C> <C>

Net asset value, beginning of period.. $14.98 $14.90 $14.72 $15.31 $14.63 $14.28
---- ---- ---- ---- ---- ---
Investment Operations:
Investment income-net................. .41 .82 .83 .87 .92 .96
Net realized and unrealized gain (loss)
on investments...................... .23 .08 .18 (.53) .77 .36
---- ---- ---- ---- ---- ---
Total from Investment Operations...... .64 .90 1.01 .34 1.69 1.32
---- ---- ---- ---- ---- ---
Distributions:
Dividends from investment income-net.. (.41) (.82) (.83) (.87) (.92) (.96)
Dividends from net realized gain on investments .- .- .- (.06) (.09) (.01)
---- ---- ---- ---- ---- ---
Total Distributions................... (.41) (.82) (.83) (.93) (1.01) (.97)
---- ---- ---- ---- ---- ---
Net asset value, end of period........ $15.21 $14.98 $14.90 $14.72 $15.31 $14.63
==== ==== ==== ==== ==== ===
TOTAL INVESTMENT RETURN(1)................ 8.63%(2) 6.11% 7.14% 2.08% 11.96% 9.45%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .91%(2) .90% .90% .80% .69% .53%
Ratio of net investment income
to average net assets............... 5.44%(2) 5.41% 5.68% 5.61% 6.13% 6.53%
Decrease reflected in above expense ratios
due to undertakings by the Manager.. - - .01% .11% .24% .41%
Portfolio Turnover Rate............... 19.20%(3) 35.47% 51.95% 12.21% 23.42% 12.32%
Net Assets, end of period (000's Omitted) $131,405 $138,058 $145,444 $155,657 $148,765 $122,782
(1) Exclusive of sales load.
(2) Annualized.
(3) Not annualized.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, MINNESOTA SERIES
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>

Net asset value, beginning of period......... $15.01 $14.92 $14.74 $15.32 $14.86
---- --- --- --- ---
Investment Operations:
Investment income-net........................ .37 .74 .75 .78 .24
Net realized and unrealized gain (loss)
on investments............................. .22 .09 .18 (.52) .46
---- --- --- --- ---
Total from Investment Operations............. .59 .83 .93 .26 .70
---- --- --- --- ---
Distributions:
Dividends from investment income-net......... (.37) (.74) (.75) (.78) (.24)
Dividends from net realized gain on investments .- .- .- (.06) .-
---- --- --- --- ---
Total Distributions.......................... (.37) (.74) (.75) (.84) (.24)
---- --- --- --- ---
Net asset value, end of period............... $15.23 $15.01 $14.92 $14.74 $15.32
==== === === === ===
TOTAL INVESTMENT RETURN(2)....................... 7.93%(3) 5.62% 6.57% 1.55% 16.32%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... 1.43%(3) 1.43% 1.44% 1.38% 1.16%(3)
Ratio of net investment income
to average net assets...................... 4.91%(3) 4.87% 5.13% 4.91% 4.83%(3)
Decrease reflected in above expense ratios
due to undertakings by the Manager......... .- .- .01% .09% .14%(3)
Portfolio Turnover Rate...................... 19.20%(4) 35.47% 51.95% 12.21% 23.42%
Net Assets, end of period (000's Omitted).... $26,197 $25,617 $23,217 $21,004 $4,633
(1) From January 15, 1993 (commencement of initial offering) to April 30, 1993.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

Class C Shares
------------------------------------
Six Months Ended
October 31, 1996 Year Ended
PER SHARE DATA: (Unaudited) April 30, 1996(1)
--------- --------
<S> <C> <C>

Net asset value, beginning of period................................ $15.01 $14.96
--- ---
Investment Operations:
Investment income-net............................................... .35 .50
Net realized and unrealized gain (loss)
on investments.................................................... .22 .05
--- ---
Total from Investment Operations.................................... .57 .55
--- ---
Distributions:
Dividends from investment income-net................................ (.35) (.50)
--- ---
Net asset value, end of period...................................... $15.23 $15.01
=== ===
TOTAL INVESTMENT RETURN(2).............................................. 7.68%(3) 5.15%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............................. 1.69%(3) 1.42%(3)
Ratio of net investment income
to average net assets............................................. 4.66%(3) 4.00%(3)
Portfolio Turnover Rate............................................. 19.20%(4) 35.47%
Net Assets, end of period (000's Omitted)........................... $387 $373
(1) From August 15, 1995 (commencement of initial offering) to April 30, 1996.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, MINNESOTA SERIES NOTES TO FINANCIAL
STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:

Premier State Municipal Bond Fund (the "Trust") is registered under the
Investment Company Act of 1940 ("Act") as a non-diversified open-end management
investment company and operates as a series company currently offering twelve
series including the Minnesota Series (the "Fund"). The Fund's investment
objective is to maximize current income exempt from Federal and, where
applicable, from State income taxes, without undue risk. The Dreyfus Corporation
("Manager") serves as the Fund's investment adviser. The Manager is a direct
subsidiary of Mellon Bank, N.A.

Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares. The Fund is authorized to issue an unlimited
number of $.001 par value shares in the following classes of shares: Class A,
Class B and Class C. Class A shares are subject to a sales charge imposed at the
time of purchase, Class B shares are subject to a contingent deferred sales
charge imposed at the time of redemption on redemptions made within six years of
purchase and Class C shares are subject to a contingent deferred sales charge
imposed at the time of redemption on redemptions made within one year of
purchase. Other differences between the three Classes include the services
offered to and the expenses borne by each Class and certain voting rights.

The Trust accounts separately for the assets, liabilities and operations of
each fund. Expenses directly attributable to each fund are charged to that
fund's operations; expenses which are applicable to all funds are allocated
among them on a pro rata basis.

The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.

The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations held
by the Fund.

(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to comply
with the distribution requirements PREMIER STATE MUNICIPAL BOND FUND, MINNESOTA
SERIES NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) of the Internal
Revenue Code. To the extent that net realized capital gain can be offset by
capital loss carryovers, if any, it is the policy of the Fund not to distribute
such gain.

NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:

Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager,
retained $527 during the period ended October 31, 1996, from commissions earned
on sales of the Funds' shares.

(B) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the
Act, the Fund pays the Distributor for distributing the Fund's Class B and Class
C shares at an annual rate of .50 of 1% of the value of the average daily net
assets of Class B shares and .75 of 1% of the value of the average daily net
assets of Class C shares. During the period ended October 31, 1996, $65,134 was
charged to the Fund for the Class B shares and $1,429 was charged to the Fund
for the Class C shares.

(C) Under the Shareholder Services Plan, the Fund pays the Distributor at an
annual rate of .25 of 1% of the value of the average daily net assets of Class
A, Class B and Class C shares for the provision of certain services. The
services provided may include personal services relating to shareholder
accounts, such as answering shareholder inquiries regarding the Fund and
providing reports and other information, and services related to the maintenance
of shareholder accounts. The Distributor may make payments to Service Agents (a
securities dealer, financial institution or other industry professional) in
respect of these services. The Distributor determines the amounts to be paid to
Service Agents. During the period ended October 31, 1996, $170,306, $32,567 and
$476 were charged to Class A, B and C shares, respectively, by the Distributor
pursuant to the Shareholder Services Plan.

The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
the Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. Such compensation
amounted to $35,099 during the period ended October 31, 1996.

NOTE 3-SECURITIES TRANSACTIONS:

The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended October 31, 1996
amounted to $30,278,393 and $37,567,970, respectively.

At October 31, 1996, accumulated net unrealized appreciation on investments
was $8,183,489, consisting of $8,396,696 gross unrealized appreciation and
$213,207 gross unrealized depreciation.

At October 31, 1996, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).

PREMIER STATE MUNICIPAL
BOND FUND, MINNESOTA SERIES
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER
AGENT & DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940

Printed in U.S.A. 055/618SA9610
Semi-Annual Report
Premier State
Municipal Bond Fund
Minnesota Series
October 31, 1996
[Dreyfus lion/2hres logo]
<PAGE>

PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES
LETTER TO SHAREHOLDERS
Dear Shareholder:

We are pleased to provide you with this report on the Premier State
Municipal Bond Fund - Ohio Series. For its semi-annual reporting period ended
October 31, 1996, your Series produced a total return of 4.97% for Class A
shares, 4.61% for Class B shares and, 4.56 % for Class C shares.* Income
dividends, exempt from Federal and State of Ohio personal income taxes, of
approximately $.347 for Class A shares, $.314 for Class B shares and $.297 for
Class C shares were paid.** This amounts to annualized tax-free distribution
rates per share of 5.11%, 4.84% and 4.58% for Class A, Class B and Class C
shares, respectively.***

THE ECONOMY

The increase in long-term interest rates early this year may have
contributed to the recently reported slowdown in the rate of economic growth.
During the third quarter, the growth rate of the Gross Domestic Product cooled
to 2.2%, less than half the second quarter's strong 4.7% pace. Consumers - the
initiators of two thirds of all economic activity - remained cautious throughout
the year. In the third quarter, the pace of consumer spending was at its slowest
in five years. Consumer borrowing has also declined from year-ago levels. Not
surprisingly, retail sales growth has also been modest this year. Consumers may
have been restrained by wages not rising as rapidly as had been previously
suspected, given the strength in the labor market. The Employment Cost Index,
considered to be an important gauge of wage inflation by Federal Reserve Board
Chairman Alan Greenspan, rose just .6% in the third quarter, the lowest reading
in over a year. This brought the growth in wages to 2.8% over the past twelve
months, slightly less than the rate of inflation as measured by the Consumer
Price Index.

The booming housing market also seems to have cooled with both new housing
starts and existing home sales slackening since midyear. Industrial production
has slowed somewhat from its more rapid pace earlier in the year. Given the
level of capacity utilization, there appears to be no sign of production
bottlenecks that could push prices higher. Anecdotal evidence still supports the
assertion that corporations are reluctant to raise prices. The report that the
1996 Federal budget deficit had shrunk to $107.3 billion - its lowest level in
two decades - provided another favorable sign for inflation. The final reading
of the 1996 deficit marks the fourth straight decline from fiscal 1992's record
$290.4 billion.

MARKET ENVIRONMENT

THE PORTFOLIO

In managing your Series' assets during a period of such volatility a
decidedly conservative posture was maintained. During those periods when
perceptions became more tentative, emphasis was placed on those securities
bearing more muted characteristics of principal volatility and higher levels of
tax-free income. At these times higher levels of cash reserves were established
in order to further buffer the portfolio from the consequences of a rising
interest rate environment. As perceptions became more constructive and prices
advanced, trading activity sought to extend portfolio duration in order to
capitalize on the potential price appreciation inherent in such an environment.
Throughout the entire six-month period investment decisions tended to focus on
those issues bearing higher degrees of creditworthiness and strong
characteristics of protection from redemption prior to maturity. Your Fund
benefitted from the conservative strategy, producing competitive levels of
tax-free income while continuing to stress principal preservation.

We appreciate your investment in the Premier State Municipal Bond Fund-Ohio
Series, and we look forward to continuing to serve your investment needs.
Very truly yours,

[Richard J. Moynihan signature logo]

Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
November 22, 1996 New York, N.Y.

**Some income may be subject to the Federal Alternative Minimum Tax (AMT)
for certain shareholders.

PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES
STATEMENT OF INVESTMENTS OCTOBER 31,1996 (UNAUDITED)
Principal
Long-Term Municipal Investments-98.7% Amount Value
<S> <C> <C>
---------- ----------
Ohio-96.0%
Adams County Valley Local School District 5.75%, 12/1/2021 (Insured; MBIA).. $ 1,000,000 $ 960,240
Akron:
Sewer Systems Revenue 5.875%, 12/1/2016 (Insured; MBIA)................... 1,200,000 1,214,556
Waterworks System Mortgage Revenue Improvement, Refunding 4.875%, 3/1/2012 2,250,000 2,104,313
Akron-Wilbeth Housing Development Corp., First Mortgage Revenue
7.90%, 8/1/2003 (Insured; FHA)............................................ 1,805,000 2,080,118
Allen County, Industrial First Mortgage Revenue, Refunding
6.75%, 11/15/2008 (Guaranteed; K-Mart Corp.).............................. 1,280,000 1,278,387
Anthony Wayne Local School District 5.75%, 12/1/2024 (Insured; FGIC)........ 1,000,000 1,006,410
Breckville-Broadview Heights City School District,
School Improvement 5.25%, 12/1/2021 (Insured; FGIC)....................... 5,000,000 4,801,200
City of Barberton, Hospital Facilities Revenue
(The Barberton Citizens Hospital Co. Project) 7.25%, 1/1/2012............. 2,400,000 2,582,784
Buckeye Valley Local School District
5.25%, 12/1/2020 (Insured; MBIA).......................................... 3,140,000 3,017,540
Butler County, Hospital Facilities Revenue, Refunding and Improvement
(Fort Hamilton Hughes Group) 7.25%, 1/1/2001.............................. 4,000,000 4,135,240
City of Cambridge, HR, Refunding (Guernsey Memorial Hospital Project)
8%, 12/1/2006............................................................. 2,000,000 2,162,980
Clermont County, Hospital Facilities Revenue, Refunding (Mercy Health Systems)
7.50%, 9/1/2019 (Prerefunded 9/1/2001) (Insured; AMBAC) (a)............... 180,000 203,249
City of Cleveland:
COP (Motor Vehicle, Motorized and Communication Equipment) 7.10%, 7/1/2002 2,000,000 2,115,920
Parking Facility Improvement Revenue 8%, 9/15/2012........................ 5,000,000 5,926,650
Waterworks First Mortgage Revenue:
5.50%, 1/1/2013 (Insured; MBIA)......................................... 3,915,000 3,941,818
5.50%, 1/1/2021 (Insired; MBIA)......................................... 5,000,000 5,029,600
Refunding and Improvement 5.75%, 1/1/2026 (Insured; MBIA)............... 6,900,000 6,936,087
City of Cleveland School District Board of Education 8%, 12/1/2001.......... 1,675,000 1,900,019
Cuyahoga County:
5.25%, 11/15/2015......................................................... 1,485,000 1,444,044
HR:
(Meridia Health Systems):
7.25%, 8/15/2019...................................................... 4,715,000 5,106,251
7%, 8/15/2023......................................................... 1,750,000 1,910,370
Refunding:
(Cleveland Clinic Foundation) 8%, 12/1/2015........................... 1,000,000 1,043,300
Improvement (University Hospitals Health) 5.625%, 1/15/2015 (Insured; MBIA) 3,695,000 3,706,824
(Mount Sinai Medical Center) 8.125%, 11/15/2014....................... 1,000,000 1,063,130
Jail Facilities 7%, 10/1/2013 (Prerefunded 10/1/2001) (a)................. 6,125,000 6,893,259
MFHR (National Terminal Apartments Project) 6.40%, 7/1/2016 (Collateralized; FNMA) 2,000,000 2,061,140
Dayton, Airport Revenue, Refunding (James M Cox International Airport)
5.25%, 12/1/2015 (Insured; AMBAC)......................................... 1,500,000 1,456,815

PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31,1996 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
----------- -----------
Ohio (continued)

Delaware City School District 5.75%, 12/1/2020 (Insured; FGIC).............. $ 1,000,000 $ 1,006,410
Eaton, IDR Refunding (Baxter International Inc. Project) 6.50%, 12/1/2012... 1,500,000 1,606,200
Euclid City School District, Improvement:
7.10%, 12/1/2011 (Prerefunded 12/1/2001) (a).............................. 1,000,000 1,130,670
Library and School, Refunding 5.125%, 12/1/2015 (Insured; AMBAC).......... 1,420,000 1,358,301
Village of Evendale, IDR Refunding (Ashland Oil Inc. Project) 6.90%, 11/1/2010 2,000,000 2,114,240
Fairfield City School District, School Improvement Unlimited Tax:
7.20%, 12/1/2011 (Insured; FGIC).......................................... 1,000,000 1,176,930
7.20%, 12/1/2012 (Insured; FGIC).......................................... 1,250,000 1,471,162
6.10%, 12/1/2015 (Insured; FGIC).......................................... 2,000,000 2,084,060
6%, 12/1/2020 (Insured; FGIC)............................................. 2,000,000 2,056,960
Fairlawn, Health Care Facilities Revenue (Village at Saint Edward Project)
8.75%, 10/1/2019.......................................................... 2,420,000 2,597,701
Franklin, Water System Revenue 5.75%, 12/1/2016 (Insured; MBIA)............. 1,000,000 1,015,180
Franklin County:
Hospital Improvement Revenue (The Children's Hospital Project) 6.60%, 11/1/2011 1,500,000 1,660,875
HR:
(Holy Cross Health Systems Corp.-Mount Carmel Health)
6.75%, 6/1/2019 (Insured; MBIA)....................................... 2,500,000 2,739,050
Refunding Improvement:
(The Children's Hospital Project) 6.60%, 5/1/2013..................... 4,000,000 4,214,280
(Worthington Christian Village Congregate Care Project):
10.25%, 8/1/2015.................................................... 785,000 859,653
7.80%, 2/1/2017 (Insured; FHA)...................................... 5,690,000 6,182,754
Refunding 5.375%, 12/1/2020............................................... 2,090,000 2,045,692
Gallia County Local School District, 7.375%, 12/1/2004...................... 570,000 662,745
Greater Cleveland Gateway Economic Development Corp.:
Senior Lien Excise Tax Revenue 6.875%, 9/1/2005 (Insured; FSA)............ 1,500,000 1,652,115
Stadium Revenue 7.50%, 9/1/2005........................................... 5,675,000 6,295,221
Greater Cleveland Regional Transit Authority 5.65%, 12/1/2016 (Insured; FGIC) 5,445,000 5,456,543
Hamilton County:
Hospital Facilities Improvement Revenue, Refunding (Deaconess Hospital)
7%, 1/1/2012............................................................ 2,570,000 2,732,861
Mortgage Revenue (Judson Care Center) 7.80%, 8/1/2019 (Insured; FHA)...... 3,970,000 4,472,681
Sewer Systems Improvement Revenue, Refunding
5.50%, 12/1/2017 (Insured; FGIC)........................................ 4,000,000 3,948,200
Hilliard School District, School Improvement
Zero Coupon, 12/1/2013 (Insured; FGIC).................................... 1,655,000 650,680
Zero Coupon, 12/1/2014 (Insured; FGIC).................................... 1,655,000 610,678
5.75%, 12/1/2019 (Insured; FGIC).......................................... 2,500,000 2,517,175
5%, 12/1/2020 (Insured; FGIC)............................................. 3,345,000 3,104,127
Kirtland Local School District 7.50%, 12/1/2009............................. 760,000 830,216

Knox County, IDR (Weyerhaeuser Co. Project) 9%, 10/1/2007................... $ 1,000,000 $ 1,278,620
Lakota Local School District 6.125%, 12/01/2017 (Insured; AMBAC)............ 1,075,000 1,122,085
Lorain, Water System Revenue 5.20%, 4/1/2016 (Insured; AMBAC)............... 2,260,000 2,180,900
Lorain County:
HR Refunding (EMH Regional Medical Center) 5.375%, 11/1/2021 (Insured; AMBAC) 1,500,000 1,446,090
5.50%, 12/1/2016 (Insured; FGIC).......................................... 1,025,000 1,021,863
Lowellville, Sanitary Sewer Systems Revenue (Browning-Ferris Industries Inc.)
7.25%, 6/1/2006........................................................... 1,300,000 1,387,789
Mahoning County, Health Care Facilities Revenue
(Youngstown Osteopathic Hospital Project)
7.60%, 8/1/2010 (LOC; Marine Midland Bank) (b)............................ 3,775,000 4,065,939
Marion County, Health Care Facilities Revenue (United Church Homes Inc.)
Refunding and Improvement 6.375%, 11/15/2010.............................. 3,000,000 3,018,300
Miami County, Hospital Facilities Revenue, Refunding (Upper Valley Medical Center):
8.375%, 5/1/2013.......................................................... 525,000 546,514
5.625%, 5/1/2019 (Insured; MBIA).......................................... 1,000,000 992,400
Montgomery County, Limited General Obligation and Sewer Revenue:
5.60%, 12/1/2016.......................................................... 1,380,000 1,395,760
Moraine, SWDR (General Motors Corp. Project) 6.75%, 7/1/2014................ 5,000,000 5,571,550
Muskingum County, Revenue, Refunding
(Franciscan Health Advisory Services) 7.50%, 3/1/2012..................... 3,185,000 3,287,621
Hospital Facilities Improvement (Bethesda Care System)
5.40%, 12/1/2016 (Insured; Connie Lee).................................. 1,755,000 1,687,345
North Royalton City School District 6.10%, 12/1/2019 (Insured; MBIA)........ 2,000,000 2,101,860
State of Ohio:
Economic Development Revenue:
Ohio Enterprise Bond Fund (VSM Corp. Project) 7.375%, 12/1/2011......... 885,000 946,861
(Sponge Inc. Project) 8.375%, 6/1/2014.................................. 1,600,000 1,764,192
Mortgage Revenue (Odd Fellows Home Ohio Inc. Project)
8.15%, 8/1/2017 (Insured; FHA).......................................... 350,000 371,546
PCR (Standard Oil Co. Project)
6.75%, 12/1/2015 (Guaranteed; British Petroleum Co. p.l.c.)............. 2,700,000 3,105,000
Ohio Air Quality Development Authority, Revenue:
8.10%, 9/1/2018........................................................... 1,000,000 1,045,810
Pollution Control Refunding:
(Cleveland Electric Illuminating Co. Project) 6.85%, 7/1/2023........... 5,250,000 5,192,250
(Ohio Edison) 7.45%, 3/1/2016 (Insured; FGIC)........................... 3,500,000 3,868,865
Refunding:
(JMG Funding Limited Partnership Project) 6.375%, 4/1/2029 (Insured; AMBAC) 2,500,000 2,660,425
(Ohio Power Co. Project) 7.40%, 8/1/2009................................ 1,500,000 1,579,845
Ohio Building Authority, State Facilities:
(Adult Correctional Facilities) 5.50%, 4/1/2016 (Insured; AMBAC).......... 4,000,000 3,959,800

Ohio Building Authority, State Facilities (continued):
(Juvenile Correctional Projects) 6.60%, 10/1/2014 (Insured; AMBAC)........ $ 1,660,000 $ 1,822,746
Ohio Capital Corp. for Housing, MFHR Refunding
7.60%, 11/1/2023 (Collateralized; FNMA)................................... 1,250,000 1,329,312
Ohio Higher Educational Facility Community, Revenue
(Case Western Reserve Project):
7.70%, 10/1/2018 (Prefunded 10/1/1997) (a).............................. 485,000 510,322
7.70%, 10/1/2018........................................................ 15,000 15,714
Ohio Housing Finance Agency:
Mortgage Revenue (Saint Francis Court Apartment Project)
8%, 10/1/2026 (Insured; FHA)............................................ 695,000 747,639
SFMR (GNMA Mortgage Backed Securities Program):
8.25%, 12/15/2019....................................................... 150,000 158,637
Zero Coupon, 9/1/2021................................................... 16,380,000 2,429,809
7.85%, 9/1/2021......................................................... 1,690,000 1,794,915
7.65%, 3/1/2029......................................................... 2,250,000 2,383,988
7.80%, 3/1/2030......................................................... 2,655,000 2,797,043
Ohio Water Development Authority, Revenue:
(Fresh Water):
5.90%, 12/1/2015 (Insured; AMBAC)....................................... 4,650,000 4,784,339
5.90%, 12/1/2021 (Insured; AMBAC)....................................... 2,500,000 2,562,150
Pollution Control Facilities:
(Cleveland Electric Illuminating Project) 8%, 10/1/2023................. 5,800,000 5,959,326
(Ohio Edison) 8.10%, 10/1/2023.......................................... 3,700,000 3,931,324
(Pennsylvania Power Co. Project) 8.10%, 9/1/2018........................ 2,000,000 2,091,280
Refunding:
(Ohio Edison) 7.625%, 7/1/2023.......................................... 5,000,000 5,262,950
(Toledo Edison Co.):
7.55%, 6/1/2023....................................................... 2,000,000 2,068,400
8%, 10/1/2023......................................................... 3,635,000 3,776,074
Ottawa County, Sanitary Sewer Systems Special Assessment
(Portage-Catawba Island Sewer Project) 7%, 9/1/2011 (Insured; AMBAC)...... 1,000,000 1,120,540
Shelby County, Hospital Facilities Revenue, Refunding and Improvement
(The Shelby County Memorial Hospital Association) 7.70%, 9/1/2018......... 2,500,000 2,686,650
Solon 6.50%, 12/1/2016...................................................... 1,390,000 1,509,526
South Euclid, Recreation Facilities 7%, 12/1/2011........................... 2,285,000 2,497,985
South Western City School District (Franklin and Pickway Counties)
5%, 12/1/2013 (Insured; MBIA)............................................. 2,825,000 2,659,257
Southwest Regional Water District, Water Revenue:
6%, 12/1/2015 (Insured; MBIA)............................................. 1,600,000 1,660,576
6%, 12/1/2020 (Insured; MBIA)............................................. 1,250,000 1,288,538
Springboro Community City School District, Refunding
5.10%, 12/01/2023 (Insured; AMBAC)........................................ 6,000,000 5,627,640

Student Loan Funding Corp.:
Student Loan Revenue, Refunding 7.20%, 8/1/2003........................... $ 3,115,000 $ 3,354,917
Student Loan Senior Subordinated Revenue 6.15%, 8/1/2010.................. 6,775,000 6,861,788
Sylvania City School District 5.75%, 12/1/2022 (Insured; FGIC).............. 1,750,000 1,761,218
Toledo 5.625%, 12/1/2011 (Insured; AMBAC)................................... 1,000,000 1,019,280
University of Cincinnati, COP 6.75%, 12/1/2009 (Insured; MBIA).............. 750,000 830,430
University of Ohio, General Receipts 5%, 12/1/2018 (Insured; FGIC).......... 1,250,000 1,148,888
Warren 7.75%, 11/1/2010 (Prerefunded 11/1/2000) (a)......................... 2,785,000 3,184,425
U.S. Related-2.7%
Puerto Rico Highway and Transportation Authority, Highway Revenue
5.45%, 7/1/2007........................................................... 5,500,000 5,438,345
Virgin Islands Public Finance Authority, Revenue Refunding
Matching Fund Loan Notes 7.25%, 10/1/2018................................. 2,200,000 2,357,608
-----------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $274,201,834)....................................................... $289,368,413
============
Short-Term Municipal Investments-1.3%
Ohio-.4%
Twinsburg, IDR (United Stationers Supply Co.)
VRDN 3.80%, (LOC; Pittsburgh National Bank) (b,c)......................... $ 1,000,000 $ 1,000,000
U.S. Related-.9%
Puerto Rico Electric Power Authority, Revenue VRDN 3.56% (Insured; FSA) (c). 1,000,000 1,000,000
Puerto Rico Government Development Bank, Refunding, VRDN
3.30% (LOC; Credit Suisse) (b,c).......................................... 1,700,000 1,700,000
-----------
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $3,700,000)......................................................... $ 3,700,000
============
TOTAL INVESTMENTS-100.0%
(cost $277,901,834)....................................................... $293,068,413
============
</TABLE>

PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES
<S> <C> <C> <C>

Summary of Abbreviations
AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit
COP Certificate of Participation MBIA Municipal Bond Investors Assurance
FGIC Financial Guaranty Insurance Company Insurance Corporation
FHA Federal Housing Administration MFHR Multi-Family Housing Revenue
FNMA Federal National Mortgage Association PCR Pollution Control Revenue
FSA Financial Security Assurance SFMR Single Family Mortgage Revenue
GNMA Government National Mortgage Association SWDR Solid Waste Disposal Revenue
HR Hospital Revenue VRDN Variable Rate Demand Notes
IDR Industrial Development Revenue
</TABLE>

Summary of Combined Ratings (Unaudited)
Fitch (d) or Moody's or Standard & Poor's Percentage of Value
- ---- -------- ----------------- ----------------------
<S> <C> <C> <C>

AAA Aaa AAA 48.1%
AA Aa AA 9.0
A A A 19.9
BBB Baa BBB 13.6
BB BB BB 6.2
F1 MIG1 SP1 .9
Not Rated(e) Not Rated(e) Not Rated(e) 2.3
------
100.0%
========
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1996 (UNAUDITED)
Cost Value
--------- ---------
<S> <C> <C> <C>

ASSETS: Investments in securities-See Statement of Investments $277,901,834 $293,068,413
Cash....................................... 16,356
Receivable for shares of Beneficial Interest subscribed 55,657
Interest receivable........................ 5,324,185
Prepaid expenses........................... 4,495
-------------
298,469,106
-------------
LIABILITIES: Due to The Dreyfus Corporation and affiliates 147,302
Due to Distributor......................... 18,008
Payable for investment securities purchased 1,370,228
Payable for shares of Beneficial Interest redeemed 182,896
Accrued expenses........................... 83,835
-------------
1,802,269
-------------
NET ASSETS.................................................................. $296,666,837
=============
REPRESENTED BY: Paid-in capital............................ $279,281,958
Accumulated net realized gain (loss) on investments 2,218,300
Accumulated net unrealized appreciation (depreciation)
....................... on investments-Note 3 15,166,579
-------------
NET ASSETS.................................................................. $296,666,837
=============
</TABLE>

NET ASSET VALUE PER SHARE
---------------------------

Class A Class B Class C
---------- ---------- ---------
<S> <C> <C> <C>

Net Assets.................................................. $253,538,038 $42,979,936 $148,863
Shares Outstanding.......................................... 19,734,275 3,344,188 11,577
NET ASSET VALUE PER SHARE................................... $12.85 $12.85 $12.86
=========== ========== ===========
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES
STATEMENT OF OPERATIONS SIX MONTHS ENDED OCTOBER 31, 1996 (UNAUDITED)
INVESTMENT INCOME
INCOME Interest Income............................ $ 9,454,504
EXPENSES: Management fee-Note 2(a)................... $ 818,640
Shareholder servicing costs-Note 2(c)...... 469,308
Distribution fees-Note 2(b)................ 103,593
Professional fees.......................... 28,246
Custodian fees............................. 16,533
Prospectus and shareholders' reports....... 12,858
Trustees' fees and expenses-Note 2(d)...... 1,874
Registration fees.......................... 1,479
Miscellaneous.............................. 6,704
----------
............. Total Expenses 1,459,235
----------
INVESTMENT INCOME-NET....................................................... 7,995,269
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 3:
Net realized gain (loss) on investments.... $ 489,410
Net unrealized appreciation (depreciation) on investments 5,727,142
----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 6,216,552
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $14,211,821
===========
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
October 31, 1996 Year Ended
(Unaudited) April 30, 1996
------------- -------------
OPERATIONS:
<S> <C> <C>

Investment income-net................................................. $ 7,995,269 $ 16,611,363
Net realized gain (loss) on investments............................... 489,410 6,261,292
Net unrealized appreciation(depreciation) on investments.............. 5,727,142 (2,957,977)
------------- -------------
Net Increase (Decrease) in Net Assets Resulting from Operations... 14,211,821 19,914,678
------------- -------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net:
Class A shares...................................................... (6,977,819) (14,787,880)
Class B shares...................................................... (1,015,981) (1,823,448)
Class C shares...................................................... (1,469) (35)
Net realized gain on investments:
Class A shares...................................................... __ (3,773,931)
Class B shares...................................................... __ (523,745)
Class C shares...................................................... __ (15)
------------- -------------
Total Dividends................................................... (7,995,269) (20,909,054)
------------- -------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares...................................................... 4,125,300 9,363,475
Class B shares...................................................... 3,150,062 9,283,699
Class C shares...................................................... 154,789 1,000
Dividends reinvested:
Class A shares...................................................... 4,539,803 12,469,387
Class B shares...................................................... 701,432 1,692,992
Class C shares...................................................... 1,275 48
Cost of shares redeemed:
Class A shares...................................................... (18,106,414) (36,740,008)
Class B shares...................................................... (2,221,529) (2,982,178)
Class C shares...................................................... (10,071) __
------------- -------------
Increase (Decrease) in Net Assets from Beneficial Interest Transactions (7,665,353) (6,911,585)
------------- -------------
Total Increase (Decrease) in Net Assets......................... (1,448,801) (7,905,961)
NET ASSETS:
Beginning of Period................................................... 298,115,638 306,021,599
------------- -------------
End of Period......................................................... $296,666,837 $298,115,638
============== ==============
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Shares
----------------------------------------
Six Months Ended
October 31, 1996 Year Ended
(Unaudited) April 30, 1996
------------------- -----------------
CAPITAL SHARE TRANSACTIONS:
Class A
--------
<S> <C> <C>

Shares sold.............................................................. 326,335 724,402
Shares issued for dividends reinvested................................... 357,961 964,492
Shares redeemed.......................................................... (1,431,259) (2,853,615)
----------------- ---------------
Net Increase (Decrease) in Shares Outstanding (746,963) (1,164,721)
================= ===============
Class B
--------
Shares sold.............................................................. 248,738 718,846
Shares issued for dividends reinvested................................... 55,276 130,834
Shares redeemed.......................................................... (175,694) (230,753)
----------------- ---------------
Net Increase (Decrease) in Shares Outstanding 128,320 618,927
================= ===============
Class C*
----------
Shares sold.............................................................. 11,467 79
Shares issued for dividends reinvested................................... 100 3
Shares redeemed.......................................................... (72) _
----------------- ---------------
Net Increase (Decrease) in Shares Outstanding 11,495 82
================= ===============

*From August 15, 1995 (commencement of initial offering) to April 30, 1996.

</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>

Net asset value, beginning of period.. $12.58 $12.62 $12.70 $13.09 $12.35 $12.00
------ ------ ------ ------ ------ ------
Investment Operations:
Investment income-net................. .35 .71 .73 .74 .77 .80
Net realized and unrealized gain (loss)
on investments...................... .27 .14 (.05) (.36) .81 .36
------ ------ ------ ------ ------ ------
Total from Investment Operations...... .62 .85 .68 .38 1.58 1.16
------ ------ ------ ------ ------ ------
Distributions:
Dividends from investment income-net.. (.35) (.71) (.73) (.74) (.77) (.80)
Dividends from net realized gain on investments .- (.18) (.03) (.03) (.07) (.01)
------ ------ ------ ------ ------ ------
Total Distributions................... (.35) (.89) (.76) (.77) (.84) (.81)
------ ------ ------ ------ ------ ------
Net asset value, end of period........ $12.85 $12.58 $12.62 $12.70 $13.09 $12.35
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN(1)................ 9.86%(2) 6.77% 5.63% 2.78% 13.24% 9.97%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .91%(2) .89% .92% .81% .70% .52%
Ratio of net investment income
to average net assets............... 5.45%(2) 5.49% 5.84% 5.57% 6.03% 6.53%
Decrease reflected in above expense ratios
due to undertakings by the Manager.. - .- .01% .12% .23% .41%
Portfolio Turnover Rate............... 13.82%(3) 43.90% 39.53% 7.73% 6.08% 13.68%
Net Assets, end of period (000's Omitted) $253,538 $257,639 $273,225 $293,706 $295,564 $243,074
(1) Exclusive of sales load.
(2) Annualized.
(3) Not annualized.

</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

Net asset value, beginning of period......... $12.59 $12.63 $12.71 $13.09 $12.69
-------- ------- ------- ------- -------
Investment Operations:
Investment income-net........................ .31 .64 .66 .66 .20
Net realized and unrealized gain (loss)
on investments............................. .26 .14 (.05) (.35) .40
-------- ------- ------- ------- -------
Total from Investment Operations............. .57 .78 .61 .31 .60
-------- ------- ------- ------- -------
Distributions:
Dividends from investment income-net......... (.31) (.64) (.66) (.66) (.20)
Dividends from net realized gain on investments .- (.18) (.03) (.03) .-
-------- ------- ------- ------- -------
Total Distributions.......................... (.31) (.82) (.69) (.69) (.20)
-------- ------- ------- ------- -------
Net asset value, end of period............... $12.85 $12.59 $12.63 $12.71 $13.09
======= ======= ====== ======== ========
TOTAL INVESTMENT RETURN(2)....................... 9.14%(3) 6.19% 5.06% 2.24% 16.36%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... 1.43%(3) 1.42% 1.44% 1.38% 1.17%(3)
Ratio of net investment income
to average net assets...................... 4.92%(3) 4.94% 5.29% 4.89% 4.62%(3)
Decrease reflected in above expense ratios
due to undertakings by the Manager......... - .- .01% .10% .13%(3)
Portfolio Turnover Rate...................... 13.82%(4) 43.90% 39.53% 7.73% 6.08%
Net Assets, end of period (000's Omitted).... $42,980 $40,476 $32,797 $27,657 $8,482
(1) From January 15, 1993 (commencement of initial offering) to April 30, 1993.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>
Class C Shares
--------------------------------------
Six Months Ended
October 31, 1996 Year Ended
PER SHARE DATA: (Unaudited) April 30, 1996(1)
--------- ----------------
<S> <C> <C>

Net asset value, beginning of period................................ $12.59 $12.68
-------- -------
Investment Operations:
Investment income-net............................................... .30 .43
Net realized and unrealized gain (loss)
on investments.................................................... .27 .09
-------- -------
Total from Investment Operations.................................... .57 .52
-------- -------
Distributions:
Dividends from investment income-net................................ (.30) (.43)
Dividends from net realized gain on investments..................... .- (.18)
-------- -------
Total Distributions................................................. (.30) (.61)
-------- -------
Net asset value, end of period...................................... $12.86 $12.59
======== =========
TOTAL INVESTMENT RETURN(2).............................................. 9.05%(3) 5.66%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............................. 1.68%(3) 1.63%(3)
Ratio of net investment income
to average net assets............................................. 4.57%(3) 4.66%(3)
Portfolio Turnover Rate............................................. 13.82%(4) 43.90%
Net Assets, end of period (000's Omitted)........................... $149 $1
(1) From August 15, 1995 (commencement of initial offering) to April 30, 1996.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.

</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)

NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:

Premier State Municipal Bond Fund (the "Trust") is registered under the
Investment Company Act of 1940 ("Act") as a non-diversified open-end management
investment company and operates as a series company currently offering twelve
series including the Ohio Series (the "Fund"). The Fund's investment objective
is to maximize current income exempt from Federal and, where applicable, from
State income taxes, without undue risk. The Dreyfus Corporation ("Manager")
serves as the Fund's investment adviser. The Manager is a direct subsidiary of
Mellon Bank, N.A.

Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares. The Fund is authorized to issue an unlimited
number of $.001 par value shares in the following classes of shares: Class A,
Class B and Class C. Class A shares are subject to a sales charge imposed at the
time of purchase, Class B shares are subject to a contingent deferred sales
charge imposed at the time of redemption on redemptions made within six years of
purchase and Class C shares are subject to a contingent deferred sales charge
imposed at the time of redemption on redemptions made within one year of
purchase. Other differences between the three Classes include the services
offered to and the expenses borne by each Class and certain voting rights.

The Trust accounts separately for the assets, liabilities and operations of
each fund. Expenses directly attributable to each fund are charged to that
fund's operations; expenses which are applicable to all funds are allocated
among them on a pro rata basis.

The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.

The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations held
by the Fund.

NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:

(A) Pursuant to a management agreement ("Agreement") with the Manager, the
management fee is computed at the annual rate of .55 of 1% of the value of the
Fund's average daily net assets and is payable monthly. The Agreement provides
that if in any full fiscal year the aggregate expenses, exclusive of taxes,
brokerage, and interest on borrowings and extraordinary expenses, exceed the
expense limitation of any state having jurisdiction over the Fund, the Fund may
deduct from payments to be made to the Manager, or the Manager will bear the
amount of such excess to the extent required by state law. There was no expense
reimbursement for the period ended October 31, 1996.

Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager,
retained $149 during the period ended October 31, 1996, from commissions earned
on sales of the Fund's shares.

(B) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the
Act, the Fund pays the Distributor for distributing the Fund's Class B and Class
C shares at an annual rate of .50 of 1% of the value of the average daily net
assets of Class B shares and .75 of 1% of the value of the average daily net
assets of Class C shares. During the period ended October 31, 1996, $103,352 was
charged to the Fund for the Class B shares and $241 was charged to the Fund for
the Class C shares.

(C) Under the Shareholder Services Plan, the Fund pays the Distributor at an
annual rate of .25 of 1% of the value of the average daily net assets of Class
A, Class B and Class C shares for the provision of certain services. The
services provided may include personal services relating to shareholder
accounts, such as answering shareholder inquiries regarding the Fund and
providing reports and other information, and services related to the maintenance
of shareholder accounts. The Distributor may make payments to Service Agents (a
securities dealer, financial institution or other industry professional) in
respect of these services. The Distributor determines the amounts to be paid to
Service Agents. During the period ended October 31, 1996, $320,353, $51,676 and
$80 were charged to Class A, B and C shares, respectively, by the Distributor
pursuant to the Shareholder Services Plan.

The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
the Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. Such compensation
amounted to $66,633 during the period ended October 31, 1996.

PREMIER STATE MUNICIPAL BOND FUND, OHIO SERIES
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

NOTE 3-SECURITIES TRANSACTIONS:

The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended October 31, 1996
amounted to $39,926,845 and $48,155,406, respectively.

At October 31, 1996, accumulated net unrealized appreciation on investments
was $15,166,579, consisting of $15,555,506 gross unrealized appreciation and
$388,927 gross unrealized depreciation.

At October 31, 1996, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).

PREMIER STATE MUNICIPAL
BOND FUND, OHIO SERIES
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER
AGENT & DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940

Printed in U.S.A. 057/619SA9610
[lion2hres logo]
Semi-Annual Report
Premier State
Municipal Bond Fund
Ohio Series
October 31, 1996
<PAGE>

PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES
LETTER TO SHAREHOLDERS
Dear Shareholder:

We are pleased to provide you with this report on the Premier State
Municipal Bond Fund - Pennsylvania Series. For its semi-annual reporting period
ended October 31, 1996, your Series produced a total return of 4.62% for Class A
shares, 4.35% for Class B shares and 4.13% for Class C shares.* Income dividends
exempt from Federal and Pennsylvania State personal income taxes of
approximately $.427 for Class A shares, $.385 for Class B shares and $.350 for
Class C shares were paid.** This amounts to an annualized tax-free distribution
rate per share of 4.91%, 4.64% and 4.22% for Class A, Class B and Class C
shares, respectively.***

THE ECONOMY

The increase in long-term interest rates early this year may have
contributed to the recently reported slowdown in the rate of economic growth.
During the third quarter, the growth rate of Gross Domestic Product cooled to
2.2%, less than half the second quarter's strong 4.7% pace. Consumers - the
initiators of two thirds of all economic activity - remained cautious throughout
the year. In the third quarter, the pace of consumer spending was at its slowest
in five years. Consumer borrowing has also declined from year-ago levels. Not
surprisingly, retail sales growth has also been modest this year. Consumers may
have been restrained by wages not rising as rapidly as had been previously
suspected, given the strength in the labor market. The Employment Cost Index,
considered to be an important gauge of wage inflation by Federal Reserve Board
Chairman Alan Greenspan, rose just .6% in the third quarter, the lowest reading
in over a year. This brought the growth in wages to 2.8% over the past twelve
months, slightly less than the rate of inflation as measured by the Consumer
Price Index.

The booming housing market also seems to have cooled with both new housing
starts and existing home sales slackening since midyear. Industrial production
has slowed somewhat from its more rapid pace earlier in the year. Given the
level of capacity utilization, there appears to be no sign of production
bottlenecks that could push prices higher. Anecdotal evidence still supports the
assertion that corporations are reluctant to raise prices. The report that the
1996 Federal budget deficit had shrunk to $107.3 billion - its lowest level in
two decades - provided another favorable sign for inflation. The final reading
of the 1996 deficit marks the fourth straight decline from fiscal 1992's record
$290.4 billion.

MARKET ENVIRONMENT

Over the last few months, the supply of new issue Pennsylvania paper has
been rather light. This has created a lack of secondary supply, from which the
Series has traditionally purchased undervalued bonds. Even though the supply has
been light, the Series has still been able to buy some undervalued securities,
while selling bonds which had achieved our price goals. The Pennsylvania supply
will probably not improve until early 1997, when we expect larger Pennsylvania
issues to be sold.

Municipals remained undervalued when compared to the taxable fixed income
market because the demand for municipals declined as the market improved. This
was especially true of the long maturity end where the bulk of new issue supply
has traditionally been issued. If the fixed income markets continue to improve,
demand for long municipals should continue to decline. The intermediate maturity
range should continue to see price improvement because demand has outstripped
supply.

THE PORTFOLIO

With a light Pennsylvania supply, the Series has been slowly selling slight
discounts with short calls and low yields, while purchasing modest premiums that
have higher yields, produce more income and are more defensive. Since interest
rates have had a significant decline, the Series is slowly becoming more
defensive. If interest rates continue to decline the Series would remain
defensive. If interest rates were to suddenly rise, the Series would be in a
good position to capitalize on a weak market and purchase bonds which would be
significantly undervalued because of a declining market environment.

As interest rates have declined, lower-rated issues have become very
expensive and the risk versus reward relationship no longer favors this type of
security. The Series has taken advantage of this current market condition by
selling lower-rated, less liquid issues while purchasing higher-rated securities
which are traditionally more liquid. This strategy will give it the flexibility
to quickly react if the market were to deteriorate. The Series has not
sacrificed income, because it has purchased housing and other types of insured
bonds at equivalent yields. These credits usually require a lot of research and
are difficult to find, but we feel they produce a very high level of income
without the credit risk which is usually associated with higher yielding bonds.

Included in this report is a series of detailed statements about your
Serie's holdings and its financial condition. We hope they are informative.
Please know that we appreciate greatly your continued confidence in the Series
and in The Dreyfus Corporation.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
November 15, 1996 New York, N.Y.

**Some income may be subject to the Federal Alternative Minimum Tax (AMT)
for certain shareholders. Income may be subject to some State and local tax for
non-Pennsylvania residents. Capital gain distributions may be subject to
Federal, State and local taxes.

PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES
STATEMENT OF INVESTMENTS OCTOBER 31, 1996 (UNAUDITED)
Principal
Long-Term Municipal Investments-94.2% Amount Value
----------- ----------
Pennsylvania-86.4%
<S> <C> <C>

Albert Gallatin Area School District 6.30%, 9/1/2024 (Insured; MBIA)........ $ 3,050,000 $ 3,232,177
Allegheny County Higher Educational Building Authority, University Revenue
(Duquesne University Project) 5%, 3/1/2021 (Insured; AMBAC)............... 2,000,000 1,842,700
Allegheny County Industrial Development Authority, Revenue:
Commercial Development, Refunding
(Kaufmann Medical Office Building) 6.80%, 3/1/2015 (Insured; MBIA)...... 3,500,000 3,861,690
Medical Center, Refunding (Presbyterian Medical Center of
Oakmont Pennsylvania, Inc.) 6.75%, 2/1/2026 (Insured; FHA).............. 1,925,000 1,996,918
Allegheny County Residential Finance Authority, SFMR:
7.40%, 12/1/2022.......................................................... 1,945,000 2,060,552
7.95%, 6/1/2023........................................................... 1,375,000 1,452,523
Beaver County Industrial Development Authority, PCR, Refunding:
(Ohio Edison Project) 7.75%, 9/1/2024..................................... 3,150,000 3,305,043
(Pennsylvania Power Company Mansfield Project) 7.15%, 9/1/2021............ 3,000,000 3,113,820
Berks County Municipal Authority, Revenue
(Phoebe Berks Village, Inc. Project) 8.25%, 5/15/2022..................... 2,445,000 2,584,243
Bethlehem Area School District
6%, 3/1/2016 (Insured; MBIA).............................................. 1,000,000 1,029,780
Bethlehem Authority, Water Revenue, Refunding
5.20%, 11/15/2021 (Insured; MBIA)......................................... 8,350,000 7,823,032
Blair County Hospital Authority, Revenue (Altoona Hospital Project)
6.375%, 7/1/2013 (Insured; AMBAC)......................................... 5,000,000 5,307,100
Bradford County Industrial Development Authority, SWDR
(International Paper Company Projects) 6.60%, 3/1/2019.................... 3,250,000 3,419,943
Butler County Hospital Authority, Refunding:
HR (Butler Memorial Hospital) 5.25%, 7/1/2016 (Insured; FSA).............. 1,500,000 1,418,130
Revenue, Health Center (Saint Francis Health Care Project) 6%, 5/1/2008... 1,860,000 1,907,393
Cambria County Industrial Development Authority, RRR
(Cambria Cogen Project):
7.75%, 9/1/2019, Series F-1 (LOC; Fuji Bank) (a)........................ 1,750,000 1,830,780
7.75%, 9/1/2019, Series F-2 (LOC; Fuji Bank) (a)........................ 2,750,000 2,876,940
Delaware County Authority, Revenue
(Elwyn Inc. Project) 8.35%, 6/1/2015...................................... 4,300,000 4,699,470
Delaware Valley Regional Finance Authority, Local Government Revenue
6%, 4/15/2026 (Insured; AMBAC)............................................ 4,060,000 4,167,346
Lancaster County Hospital Authority, Revenue, Refunding
(Health Center - Masonic Homes Project)
5%, 11/15/2020 (Insured; AMBAC)........................................... 1,625,000 1,474,119
Lawrence County 4.875%, 8/1/2010 (Insured; FGIC)............................ 3,890,000 3,687,837
Lehigh County General Purpose Authority, Revenue:
Hospital (Saint Luke's Hospital Bethlehem) 6.25%, 7/1/2022 (Insured; AMBAC) 10,000,000 10,402,900
Refunding (Ceder Crest College) 6.65%, 4/1/2017........................... 2,500,000 2,518,500

PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1996 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
---------- ----------
Pennsylvania (continued)

Lehigh County General Purpose Authority, Revenue (continued):
(Wiley House):
8.75%, 11/1/2014........................................................ $ 3,785,000 $ 3,937,876
9.50%, 11/1/2016........................................................ 2,000,000 2,147,660
Lehigh County Industrial Development Authority, PCR, Refunding
(Pennsylvania Power and Light Company Project)
6.40%, 11/1/2021 (Insured; MBIA).......................................... 6,610,000 7,054,721
Luzerne County Industrial Development Authority, Exempt Facilities Revenue, Refunding
(Pennsylvania Gas and Water Company Project) 7.125%, 12/1/2022............ 4,000,000 4,243,920
Meadville 5.25%, 10/1/2025 (Insured; AMBAC)................................. 3,155,000 2,978,225
Montgomery County 6.10%, 10/15/2025......................................... 5,000,000 5,106,100
Montgomery County Higher Educational and Health Authority:
HR (Abington Memorial Hospital) 5.125%, 6/1/2014 (Insured; AMBAC)......... 3,000,000 2,841,750
Revenue:
First Mortgage (Montgomery Income Project) 10.50%, 9/1/2020............. 2,965,000 3,214,238
(Northwestern Corporation) 8.375%, 6/1/2009............................. 2,685,000 2,899,075
Montgomery County Industrial Development Authority, RRR
7.50%, 1/1/2012 (LOC; Banque Paribas) (a)................................. 11,715,000 12,592,688
Norristown Municipal Waste Authority, Sewer Revenue
5.125%, 11/15/2023 (Insured; FGIC)........................................ 6,400,000 5,874,880
Northampton County Industrial Development Authority, PCR, Refunding
(Bethlehem Steel) 7.55%, 6/1/2017......................................... 5,700,000 5,948,862
Pennsylvania:
6.60%, 11/1/2011.......................................................... 5,000,000 5,375,350
5%, 9/1/2013.............................................................. 5,500,000 5,197,280
COP, Refunding 5%, 7/1/2015 (Insured; AMBAC).............................. 1,335,000 1,233,420
Pennsylvania Convention Center Authority, Revenue, Refunding
6.75%, 9/1/2019........................................................... 3,595,000 3,877,208
Pennsylvania Economic Development Financing Authority:
Exempt Facilities Revenue (Macmillan Ltd. Partnership Project) 7.60%, 12/1/2020 3,500,000 3,904,110
RRR (Northampton Generating Project):
6.40%, 1/1/2009......................................................... 2,500,000 2,472,725
6.50%, 1/1/2013......................................................... 6,500,000 6,392,165
Wastewater Treatment Revenue (Sun Co. Inc. - R and M Project) 7.60%, 12/1/2024 4,240,000 4,729,042
Pennsylvania Higher Education Assistance Agency, Student Loan Revenue
7.05%, 10/1/2016 (Insured; AMBAC)......................................... 2,500,000 2,677,925
Pennsylvania Higher Educational Facilities Authority, College and University
Revenue
Refunding (Dequesne University) 7%, 4/1/2010 (Insured; MBIA).............. 2,000,000 2,180,200
Pennsylvania Housing Finance Agency:
6.50%, 7/1/2023........................................................... 2,750,000 2,845,150
Single Family Mortgage:
6.85%, 4/1/2016 (Insured; FHA).......................................... 3,700,000 3,922,111

Pennsylvania Housing Finance Agency (continued):
Single Family Mortgage (continued):
7.875%, 10/1/2020....................................................... $ 1,435,000 $ 1,498,370
6.90%, 4/1/2025......................................................... 6,250,000 6,576,313
Philadelphia:
5%, 5/15/2020 (Insured; MBIA)............................................. 2,250,000 2,073,195
Gas Works Revenue:
5.25%, 8/1/2024 (Insured; FSA).......................................... 5,000,000 4,704,350
6.375%, 7/1/2026 (Insured; CMAC)........................................ 6,885,000 7,268,563
Water and Wastewater Revenue:
Refunding 5.50%, 6/15/2007 (Insured; MBIA).............................. 4,155,000 4,281,146
Refunding 5.625%, 6/15/2008 (Insured; FSA).............................. 5,000,000 5,198,800
6.25%, 8/1/2010 (Insured; MBIA)......................................... 2,730,000 2,993,309
Refunding 5.25%, 6/15/2023 (Insured; MBIA).............................. 15,255,000 14,309,495
Philadelphia Hospital and Higher Education Facilities Authority:
HR:
(Albert Einstein Medical Center) 7%, 10/1/2021.......................... 1,500,000 1,585,965
(Refunding - Children's Hospital) 5%, 2/15/2021 (Insured; MBIA)......... 5,000,000 4,502,900
(Refunding - Temple University Hospital) 6.625%, 11/15/2023............. 4,750,000 4,952,968
Revenue (Northwestern Corporation) 8.375%, 6/1/2009....................... 1,885,000 2,024,622
Philadelphia School District, Refunding 6.25%, 9/1/2009 (Insured; AMBAC).... 2,000,000 2,187,820
Pittsburgh Urban Redevelopment Authority:
Mortgage Revenue:
7.05%, 4/1/2023......................................................... 1,785,000 1,854,954
(Refunding - Sidney Square Project) 6.65%, 9/1/2028..................... 3,350,000 3,408,625
Single Family Mortgage 7.40%, 4/1/2024................................... 860,000 899,698
Schuylkill County Industrial Development Authority, Refunding:
First Mortgage Revenue (Valley Health Concerns) 8.75%, 3/1/2012........... 2,500,000 2,637,575
RRR (Schuylkill Energy Resources Inc.) 6.50%, 1/1/2010.................... 1,840,000 1,777,845
Upper Merion Municipal Utility Authority, Sewer Revenue, Refunding
6%, 8/15/2016............................................................. 2,725,000 2,804,951
Washington County Industrial Development Authority, Revenue, Refunding
(Presbyterian Medical Center) 6.75%, 1/15/2023 (Insured; FHA)............. 3,000,000 3,107,849
U.S. Related-7.8%
Guam Airport Authority, Revenue 6.70%, 10/1/2023............................ 4,500,000 4,634,954
Guam Government 5.375%, 11/15/2013.......................................... 4,000,000 3,737,399
Puerto Rico Highway and Transportation Authority,
Highway Revenue
5.40%, 7/1/2006........................................................... 10,000,000 9,932,499
Puerto Rico Public Buildings Authority, Guaranteed Public Education and Health
Facilities, Refunding 5.70%, 7/1/2009..................................... 5,000,000 5,131,749
------------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS (cost $274,504,166)................... $283,745,531
=============

PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1996 (UNAUDITED)
Principal
Short-Term Municipal Investments-5.8% Amount Value
--------- ---------
Pennsylvania-3.9%

Montgomery County Higher Education and Health Authority, HR, VRDN
3.50% (Insured; AMBAC) (b)................................................ $ 2,380,000 $ 2,380,000
Pennsylvania Energy Development Authority, Energy Development Revenue
(B and W Ebensburg Project) 3.60% (LOC; Swiss Bank Corporation) (a,b)..... 4,150,000 4,150,000
Pennsylvania Higher Educational Assistance Agency, Student Loan Revenue, VRDN
3.60% (LOC; Sallie Mae) (a,b)............................................. 1,000,000 1,000,000
Philadelphia Regional Port Authority, LR, Refunding
3.50% (Insured; MBIA) (c)................................................. 1,000,000 1,000,000
Schuylkill County Industrial Development Authority, VRDN, Revenue:
(Pine Grove Landfill Inc.) 3.60% (LOC; Meridian Bankcorp. Inc.) (a,b)..... 1,100,000 1,100,000
Resource Recovery (Westwood Energy Property Project) 3.60% (LOC; Fuji Bank Ltd.) (a,b) 2,000,000 2,000,000
U.S. Related-1.9%
Commonwealth of Puerto Rico Government Development Bank, Refunding, VRDN
3.75% (LOC; Credit Suisse) (a,b).......................................... 5,750,000 5,750,000
------------
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS (cost $17,380,000)................... $ 17,380,000
=============
TOTAL INVESTMENTS-100% (cost $291,884,166).................................. $301,125,531
=============
</TABLE>
<TABLE>
<CAPTION>

PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES
<S> <C> <C> <C>

Summary of Abbreviations
AMBAC American Municipal Bond Assurance Corporation LR Lease Revenue
CMAC Capital Market Assurance Corporation MBIA Municipal Bond Investors Assurance
COP Certificate of Participation Insurance Corporation
FGIC Financial Guaranty Insurance Company PCR Pollution Control Revenue
FHA Federal Housing Administration RRR Resources Recovery Revenue
FSA Financial Security Assurance SFMR Single Family Mortgage Revenue
HR Hospital Revenue SWDR Solid Waste Disposal Revenue
LOC Letter of Credit VRDN Variable Rate Demand Note
</TABLE>

Summary of Combined Ratings (Unaudited)
Fitch (d) or Moody's or Standard & Poor's Percentage of Value
- ---- -------- ----------------- --------------------
<S> <C> <C> <C>

AAA Aaa AAA 45.7%
AA Aa AA 8.4
A A A 15.6
BBB Baa BBB 13.5
F1 MIG1/P1 SP1/A1 5.4
Not Rated (e) Not Rated (e) Not Rated (e) 11.4
-------
100.0%
=========
</TABLE>

Notes to Statement of Investments:
(a) Secured by letters of credit.
(b) Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an of market interest rates.
(c) Inverse Floater Security-the interest rate is subject to change
periodically.
(d) Fitch currently provides creditworthiness information for a limited
number of investments.
(e) Securities which, while not rated by Fitch, Moody's or Standard & Poor's
have been determined by the Manager to be of comparable quality to those
rated securities in which the Fund may invest.

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1996 (UNAUDITED)
Cost Value
----------- ---------
<S> <C> <C> <C>

ASSETS: Investments in securities-See Statement of Investments $291,884,166 $301,125,531
Interest receivable........................ 5,574,574
Receivable for investment securities sold.. 2,693,209
Receivable for shares of Beneficial Interest subscribed 15,659
Prepaid expenses........................... 11,386
-------------
309,420,359
-------------
LIABILITIES: Due to The Dreyfus Corporation............. 132,774
Due to Distributor......................... 91,098
Cash overdraft due to Custodian............ 4,707,080
Payable for investment securities purchased 19,784,532
Payable for shares of Beneficial Interest redeemed 177,009
Accrued expenses........................... 25,173
-------------
24,917,666
-------------
NET ASSETS.................................................................. $284,502,693
==============
REPRESENTED BY: Paid-in capital............................ $272,198,803
Accumulated net realized gain (loss) on investments 3,062,525
Accumulated net unrealized appreciation (depreciation)
on investments-Note 3...................... 9,241,365
-------------
NET ASSETS.................................................................. $284,502,693
==============
</TABLE>

NET ASSET VALUE PER SHARE
--------------------------------

Class A Class B Class C
--------------- ------------- ------------
- -------
<S> <C> <C> <C>

Net Assets.................................................. $211,990,323 $72,480,373 $31,997
Shares Outstanding.......................................... 12,863,614 4,399,838 1,943
NET ASSET VALUE PER SHARE................................... $16.48 $16.47 $16.47
============= ============= ============
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES
STATEMENT OF OPERATIONS SIX MONTHS ENDED OCTOBER 31, 1996 (UNAUDITED)
INVESTMENT INCOME
INCOME Interest Income............................ $ 8,823,019
EXPENSES: Management fee-Note 2(a)................... $ 792,037
Shareholder servicing costs-Note 2(c)...... 482,604
Distribution fees-Note 2(b)................ 181,917
Custodian fees............................. 15,569
Professional fees.......................... 13,358
Prospectus and shareholders' reports....... 10,562
Trustees' fees and expenses-Note 2(d)...... 1,582
Registration fees.......................... 958
Miscellaneous.............................. 3,571
----------
Total Expenses......................... 1,502,158
----------
INVESTMENT INCOME-NET....................................................... 7,320,861
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 3:
Net realized gain (loss) on investments.... $1,151,399
Net unrealized appreciation (depreciation) on investments 4,262,366
----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 5,413,765
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $12,734,626
===========

</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
October 31, 1996 Year Ended
(Unaudited) April 30, 1996
--------------- ---------------
OPERATIONS:
<S> <C> <C>

Investment income-net.................................................. $ 7,320,861 $ 15,026,178
Net realized gain (loss) on investments................................ 1,151,399 3,624,514
Net unrealized appreciation(depreciation) on investments............... 4,262,366 2,233,089
--------------- ---------------
Net Increase (Decrease) in Net Assets Resulting from Operations.. 12,734,626 20,883,781
--------------- ---------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net:
Class A shares....................................................... (5,612,555) (11,560,546)
Class B shares....................................................... (1,707,761) (3,465,577)
Class C shares....................................................... (545) (55)
Net realized gain on investments:
Class A shares....................................................... __ (3,548,917)
Class B shares....................................................... __ (1,187,046)
Class C shares....................................................... __ (17)
--------------- ---------------
Total Dividends.................................................. (7,320,861) (19,762,158)
--------------- ---------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares.................................................... 3,260,380 20,084,706
Class B shares................................................... 1,681,844 6,829,157
Class C shares...................................................... 10,011 21,000
Dividends reinvested:
Class A shares....................................................... 2,916,971 8,442,622
Class B shares....................................................... 1,055,226 2,978,350
Class C shares....................................................... 460 73
Cost of shares redeemed:
Class A shares....................................................... (15,021,976) (32,654,140)
Class B shares....................................................... (4,247,060) (7,401,867)
--------------- ---------------
Increase (Decrease) in Net Assets from Beneficial Interest Transactions (10,344,144) (1,700,099)
--------------- ---------------
Total Increase (Decrease) in Net Assets........................ (4,930,379) (578,476)
NET ASSETS:
Beginning of Period.................................................... 289,433,072 290,011,548
--------------- ---------------
End of Period.......................................................... $284,502,693 $289,433,072
================ ==============
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Shares
------------------------------------------
Six Months Ended
October 31, 1996 Year Ended
(Unaudited) April 30, 1996
--------------- -------------
CAPITAL SHARE TRANSACTIONS:
Class A
--------
<S> <C> <C>

Shares sold........................................................... 200,327 1,227,069
Shares issued for dividends reinvested................................... 179,019 508,499
Shares redeemed.......................................................... (924,340) (1,973,350)
--------------- -------------
Net Increase (Decrease) in Shares Outstanding (544,994) (237,782)
=============== ===============
Class B
---------
Shares sold.............................................................. 103,751 412,949
Shares issued for dividends reinvested................................... 64,799 179,443
Shares redeemed.......................................................... (261,163) (448,471)
--------------- -------------
Net Increase (Decrease) in Shares Outstanding (92,613) 143,921
=============== ===============
Class C*
----------
Shares sold.............................................................. 613 1,298
Shares issued for dividends reinvested................................... 28 4
--------------- -------------
Net Increase (Decrease) in Shares Outstanding 641 1,302
=============== ===============
*From August 15, 1995 (commencement of initial offering) to April 30, 1996.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>

Net asset value, beginning of period.. $16.17 $16.12 $16.01 $16.61 $15.73 $15.21
------ ------ ------ ------ ------ ------
Investment Operations:
Investment income-net................. .43 .87 .91 .95 1.02 1.06
Net realized and unrealized gain (loss)
on investments...................... .31 .32 .11 (.57) .99 .56
------ ------ ------ ------ ------ ------
Total from Investment Operations...... .74 1.19 1.02 .38 2.01 1.62
------ ------ ------ ------ ------ ------
Distributions:
Dividends from investment income-net.. (.43) (.87) (.91) (.95) (1.02) (1.06)
Dividends from net realized gain on investments .- (.27) .- (.03) (.11) (.04)
------ ------ ------ ------ ------ ------
Total Distributions................... (.43) (1.14) (.91) (.98) (1.13) (1.10)
------ ------ ------ ------ ------ ------
Net asset value, end of period........ $16.48 $16.17 $16.12 $16.01 $16.61 $15.73
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN(1)................ 9.16%(2) 7.46% 6.65% 2.17% 13.19% 10.97%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .91%(2) .92% .92% .81% .69% .56%
Ratio of net investment income
to average net assets............... 5.22%(2) 5.28% 5.77% 5.61% 6.24% 6.75%
Decrease reflected in above expense ratios
due to undertakings by the Manager.. - - .01% .12% .25% .41%
Portfolio Turnover Rate............... 28.74%(3) 52.69% 55.19% 7.21% 8.64% 38.97%
Net Assets, end of period (000's Omitted) $211,990 $216,802 $219,949 $235,619 $220,920 $158,437
(1) Exclusive of sales load.
(2) Annualized.
(3) Not annualized.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>

Net asset value, beginning of period......... $16.16 $16.11 $16.01 $16.60 $16.10
-------- ------- ------- ------- -------
Investment Operations:
Investment income-net........................ .38 .79 .83 .85 .26
Net realized and unrealized gain (loss)
on investments............................. .31 .32 .10 (.56) .50
-------- ------- ------- ------- -------
Total from Investment Operations............. .69 1.11 .93 .29 .76
-------- ------- ------- ------- -------
Distributions:
Dividends from investment income-net......... (.38) (.79) (.83) (.85) (.26)
Dividends from net realized gain on investments .- (.27) .- (.03) .-
-------- ------- ------- ------- -------
Total Distributions.......................... (.38) (1.06) (.83) (.88) (.26)
-------- ------- ------- ------- -------
Net asset value, end of period............... $16.47 $16.16 $16.11 $16.01 $16.60
======= ======= ====== ======== ========
TOTAL INVESTMENT RETURN(2)....................... 8.63%(3) 6.92% 6.02% 1.65% 16.39%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... 1.43%(3) 1.43% 1.44% 1.38% 1.14%(3)
Ratio of net investment income
to average net assets...................... 4.69%(3) 4.76% 5.22% 4.95% 4.90%(3)
Decrease reflected in above expense ratios
due to undertakings by the Manager......... - - .01% .10% .15%(3)
Portfolio Turnover Rate...................... 28.74%(4) 52.69% 55.19% 7.21% 8.64%
Net Assets, end of period (000's Omitted).... $ 72,481 $72,610 $70,062 $59,057 $14,631
(1) From January 15, 1993 (commencement of initial offering) to April 30, 1993.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

Class C Shares
--------------------------------------
Six Months Ended
October 31, 1996 Year Ended
PER SHARE DATA: (Unaudited) April 30, 1996(1)
--------- ----------------
<S> <C> <C>

Net asset value, beginning of period................................ $16.16 $16.18
-------- -------
Investment Operations:
Investment income-net............................................... .35 .53
Net realized and unrealized gain (loss)
on investments.................................................... .31 .25
-------- -------
Total from Investment Operations.................................... .66 .78
-------- -------
Distributions:
Dividends from investment income-net................................ (.35) (.53)
Dividends from net realized gain on investments..................... .- (.27)
-------- -------
Total Distributions................................................. (.35) (.80)
-------- -------
Net asset value, end of period...................................... $16.47 $16.16
======== =========
TOTAL INVESTMENT RETURN(2).............................................. 8.19%(3) 6.71%(4)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............................. 1.86%(3) 1.70%(4)
Ratio of net investment income
to average net assets............................................. 4.19%(3) 4.46%(4)
Portfolio Turnover Rate............................................. 28.74%(4) 52.69%
Net Assets, end of period (000's Omitted)........................... $32 $21
(1) From August 15, 1995 (commencement of initial offering) to April 30, 1996.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.

</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES NOTES TO FINANCIAL
STATEMENTS (UNAUDITED)

NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:

Premier State Municipal Bond Fund (the "Trust") is registered under the
Investment Company Act of 1940 ("Act") as a non-diversified open-end management
investment company and operates as a series company currently offering twelve
series including the Pennsylvania Series (the "Fund"). The Fund's investment
objective is to maximize current income exempt from Federal and, where
applicable, from State income taxes, without undue risk. The Dreyfus Corporation
("Manager") serves as the Fund's investment adviser. The Manager is a direct
subsidiary of Mellon Bank, N.A.

Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares. The Fund is authorized to issue an unlimited
number of $.001 par value shares in the following classes of shares: Class A,
Class B and Class C. Class A shares are subject to a sales charge imposed at the
time of purchase, Class B shares are subject to a contingent deferred sales
charge imposed at the time of redemption on redemptions made within six years of
purchase and Class C shares are subject to a contingent deferred sales charge
imposed at the time of redemption on redemptions made within one year of
purchase. Other differences between the three Classes include the services
offered to and the expenses borne by each Class and certain voting rights.

The Trust accounts separately for the assets, liabilities and operations of
each fund. Expenses directly attributable to each fund are charged to that
fund's operations; expenses which are applicable to all funds are allocated
among them on a pro rata basis.

The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.

The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations held
by the Fund.

(c) Dividends to shareholders: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to comply
with the distribution requirements of the Internal Revenue Code. To the extent
that net realized capital gain can be offset by capital loss carryovers, if any,
it is the policy of the Fund not to distribute such gain.

NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:

Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager,
retained $504 during the period ended October 31, 1996, from commissions earned
on sales of the Fund's shares.

(B) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the
Act, the Fund pays the Distributor for distributing the Fund's Class B and Class
C shares at an annual rate of .50 of 1% of the value of the average daily net
assets of Class B shares and .75 of 1% of the value of the average daily net
assets of Class C shares. During the period ended October 31, 1996, $181,820 was
charged to the Fund for the Class B shares and $97 was charged to the Fund for
the Class C shares.

(C) Under the Shareholder Services Plan, the Fund pays the Distributor at an
annual rate of .25 of 1% of the value of the average daily net assets of Class
A, Class B and Class C shares for the provision of certain services. The
services provided may include personal services relating to shareholder
accounts, such as answering shareholder inquiries regarding the Fund and
providing reports and other information, and services related to the maintenance
of shareholder accounts. The Distributor may make payments to Service Agents (a
securities dealer, financial institution or other industry professional) in
respect of these services. The Distributor determines the amounts to be paid to
Service Agents. During the period ended October 31, 1996, $269,075, $90,910 and
$32 were charged to Class A, B and C shares, respectively, by the Distributor
pursuant to the Shareholder Services Plan.

The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
the Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. Such compensation
amounted to $79,853 during the period ended October 31, 1996.

PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA SERIES
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

NOTE 3-SECURITIES TRANSACTIONS:

The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended October 31, 1996
amounted to $87,902,194 and $78,919,400, respectively.

At October 31, 1996, accumulated net unrealized appreciation on investments
was $9,241,365, consisting of $9,787,707 gross unrealized appreciation and
$546,342 gross unrealized depreciation.

At October 31, 1996, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments). PREMIER STATE MUNICIPAL BOND FUND, PENNSYLVANIA
SERIES 200 Park Avenue New York, NY 10166 MANAGER The Dreyfus Corporation 200
Park Avenue New York, NY 10166 CUSTODIAN The Bank of New York 90 Washington
Street New York, NY 10286 TRANSFER AGENT & DIVIDEND DISBURSING AGENT Dreyfus
Transfer, Inc. P.O. Box 9671 Providence, RI 02940

Printed in U.S.A. 058/620SA9610
[lion2hres logo]
Semi-Annual Report
Premier State
Municipal Bond Fund
Pennsylvania Series
October 31, 1996
<PAGE>

PREMIER STATE MUNICIPAL BOND FUND, TEXAS SERIES
LETTER TO SHAREHOLDERS
Dear Shareholder:

We are pleased to provide you with this report on the Premier State
Municipal Bond Fund - Texas Series. For its semi-annual reporting period ended
October 31, 1996, your Series produced a total return of 5.17% for Class A
shares, 4.85% for Class B shares and 4.73% for Class C shares.* Income dividends
exempt from Federal personal income taxes of approximately $.591 for Class A
shares, $.537 for Class B shares and $.502 for Class C shares were paid.** This
amounts to an annualized tax-free distribution rate per share of 5.25%, 5.00%
and 4.67% for Class A, Class B and Class C shares, respectively.***

THE ECONOMY

The increase in long-term interest rates early this year may have
contributed to the recently reported slowdown in the rate of economic growth.
During the third quarter, the growth rate of Gross Domestic Product cooled to
2.2%, less than half the second quarter's strong 4.7% pace. Consumers - the
initiators of two thirds of all economic activity - remained cautious throughout
the year. In the third quarter, the pace of consumer spending was at its slowest
in five years. Consumer borrowing has also declined from year-ago levels. Not
surprisingly, retail sales growth has also been modest this year. Consumers may
have been restrained by wages not rising as rapidly as had been previously
suspected, given the strength in the labor market. The Employment Cost Index,
considered to be an important gauge of wage inflation by Federal Reserve Board
Chairman Alan Greenspan, rose just .6% in the third quarter, the lowest reading
in over a year. This brought the growth in wages to 2.8% over the past twelve
months, slightly less than the rate of inflation as measured by the Consumer
Price Index.

The booming housing market also seems to have cooled with both new housing
starts and existing home sales slackening since midyear. Industrial production
has slowed somewhat from its more rapid pace earlier in the year. Given the
level of capacity utilization, there appears to be no sign of production
bottlenecks that could push prices higher. Anecdotal evidence still supports the
assertion that corporations are reluctant to raise prices. The report that the
1996 Federal budget deficit had shrunk to $107.3 billion - its lowest level in
two decades - provided another favorable sign for inflation. The final reading
of the 1996 deficit marks the fourth straight decline from fiscal 1992's record
$290.4 billion.

MARKET ENVIRONMENT

Over the last few months, the supply of new issue Texas paper has been
rather heavy. This has helped to create a good secondary supply from which the
Series has traditionally purchased undervalued bonds. With a good secondary
supply, the Series has been able to buy some undervalued securities while
selling bonds which had achieved our goals. The Texas supply should remain
healthy, thus the Series should be able to continue to find value in the
secondary market.

Municipals remained undervalued when compared to the taxable fixed income
markets because the demand for municipals declined as the market improved. This
was especially true of the long maturity end where the bulk of new issue supply
has traditionally been issued. If the fixed income markets continue to improve,
demand for long municipals should continue to decline. The intermediate maturity
range should continue to see price improvement because demand has outstripped
supply.

THE PORTFOLIO

The Series has been slowly selling slight discounts with short calls and
low yields, while purchasing modest premiums that have higher yields, produce
more income and are more defensive. Since interest rates have had a significant
decline, the Series is slowly becoming more defensive. If interest rates
continue to decline the Series would remain defensive. If interest rates were to
suddenly rise, the Series would be in a good position to capitalize on a weak
market and purchase bonds which would be significantly undervalued because of a
declining market environment.

As interest rates have declined, lower-rated issues have become very
expensive and the risk versus reward relationship no longer favors this type of
security. The Series has taken advantage of this current market condition by
selling lower-rated, less liquid issues while purchasing higher-rated securities
which are traditionally more liquid. This strategy will give it the flexibility
to quickly react if the market were to deteriorate. The Series has not
sacrificed income because it has purchased housing and other types of insured
bonds at equivalent yields. These credits usually require a lot of research and
are difficult to find, but they produce a very high level of income without the
credit risk which is usually associated with higher yielding bonds. Included in
this report is a series of detailed statements about your Series' holdings and
its financial condition. We hope they are informative. Please know that we
appreciate greatly your continued confidence in the Fund and in The Dreyfus
Corporation. Very truly yours,

[Richard J. Moynihan signature logo]

Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
November 15, 1996
New York, N.Y.

**Some income may be subject to the Federal Alternative Minimum Tax (AMT)
for certain shareholders.

PREMIER STATE MUNICIPAL BOND FUND, TEXAS SERIES
STATEMENT OF INVESTMENTS OCTOBER 31, 1996 (UNAUDITED)
Principal
Long-Term Municipal Investments-95.7% Amount Value
------ ------
Texas-93.4%
<S> <C> <C>

Alief Independent School District (Permanent School Fund Guaranteed) 5%, 2/15/2012 $ 1,000,000 $ 950,160
Allen Independent School District Building (Permanent School Fund Guaranteed)
5.20%, 2/15/2021 (a)...................................................... 2,030,000 1,921,456
Amarillo Health Facilities Corp., HR (High Plains Baptist Hospital)
6.562%, 1/3/2022 (Insured; FSA)........................................... 4,500,000 4,749,570
Bexar County Health Facilities Development Corp., HR Refunding
(Baptist Memorial Hospital System Project) 6.625%, 2/15/2011 (Insured; MBIA) 2,690,000 2,947,836
Brazos Higher Education Authority Inc., Student Loan Revenue, Refunding
6.80%, 12/1/2004.......................................................... 850,000 924,749
Carrollton Farmers Branch Independent School District
(Permanent School Fund Guaranteed) 5%, 2/15/2017.......................... 3,300,000 3,086,127
Clear Creek Independent School District (Permanent School Fund Guaranteed)
4.25%, 2/1/2013........................................................... 1,575,000 1,325,347
Clint Independent School District, Refunding (Permanent School Fund
Guaranteed)
7%, 3/1/2015.............................................................. 750,000 799,162
Dallas-Fort Worth Regional Airport, Joint Revenue
6.625%, 11/1/2021 (Insured; FGIC)......................................... 1,250,000 1,329,050
Dripping Springs Independent School District (Permanent School Fund
Guaranteed)
6%, 8/15/2021............................................................. 1,900,000 1,927,683
El Paso Housing Authority, Multi-Family Revenue
(Section 8 Projects) 6.25%, 12/1/2009..................................... 2,510,000 2,572,072
Grape Creek-Pulliam Independent School District
Public Facility Corp., School Facility Lease Revenue
7.25%, 5/15/2021................................................................ 2,200,000 2,223,188
Grapevine-Colleyville Independent School District (Permanent School Fund
Guaranteed)
5.125%, 8/15/2022............................................................... 3,000,000 2,808,450
Gulf Coast Waste Disposal Authority, SWDR
(Champion International Corp. Project) 7.25%, 4/1/2017.......................... 1,000,000 1,061,130
Gunter Independent School District, Refunding (Permanent School Fund
Guaranteed)
6.05%, 8/15/2026................................................................ 1,020,000 1,030,771
Harris County (Toll Road) Senior Lien 6.375%, 8/15/2024 (Insured; MBIA)........................... 3,000,000 3,237,600
Harris County Health Facilities Development Corp., Health Care System Revenue
(Sisters of Charity) 7.10%, 7/1/2021...................................... 1,000,000 1,080,710
Houston:
Refunding 7%, 3/1/2008.................................................... 2,000,000 2,307,980
Water and Sewer System Revenue, Refunding (Junior Lien)
5.25%, 12/1/2025 (Insured; FGIC)........................................ 3,000,000 2,852,040
Keller Independent School District,
Unlimited Tax School Building and Refunding (Permanent School Fund
Guaranteed)
5.125%, 8/15/2025......................................................... 3,900,000 3,633,669

PREMIER STATE MUNICIPAL BOND FUND, TEXAS SERIES
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1996 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
------ ------
Texas (continued)
Leander 6.75%, 8/15/2016.................................................... $ 2,325,000 $ 2,427,974
Leon County, PCR, Refunding (Nucor Corp. Project) 7.375%, 8/1/2009.......... 750,000 825,383
Matagorda County Navigation District No. 1, PCR
(Collateralized Houston Lighting and Power) 7.875%, 2/1/2019.............. 500,000 527,585
Montgomery County Health Facilities Development Corp., Hospital Mortgage
Revenue
(Woodlands Medical Center Project) 8.85%, 8/15/2014....................... 575,000 620,293
North Texas Higher Education Authority, Inc., Student Loan Revenue
7.25%, 4/1/2003 (Insured; AMBAC).......................................... 1,000,000 1,059,370
Pearsall Independent School District, Refunding (Permanent School Fund
Guaranteed)
5.25%, 2/15/2025.......................................................... 895,000 851,315
Port of Bay City Authority, Matagorda County Revenue
(Hoechst Celanese Corp. Project) 6.50%, 5/1/2026.......................... 3,500,000 3,615,955
Red River Authority, PCR
(Hoechst Celanese Corp. Project) 6.875%, 4/1/2017......................... 4,100,000 4,396,922
Southwest Higher Education Authority, Inc., Higher Education Revenue
(Southern Methodist University Project) 5.125%, 10/1/2026 (Insured; FSA).. 1,000,000 930,700
Texas (Veterans Housing Assistance) 6.80%, 12/1/2023........................ 3,000,000 3,110,730
Texas Department Housing and Community Affairs, MFHR
(Harbors and Plumtree) 6.35%, 7/1/2016 (b)................................ 1,300,000 1,303,042
Texas Higher Education Coordinating Board, College Student Loan Revenue
7.30%, 10/1/2003.......................................................... 710,000 758,429
Texas National Research Laboratory Commission Financing Corp., LR
(Superconducting Super Collider)
6.95%, 12/1/2012.......................................................... 700,000 777,021
Texas Public Property Finance Corp., Revenue
(Mental Health and Retardation) 8.875%, 9/1/2011 (Prerefunded 9/1/2001) (c) 455,000 546,487
Texas Turnpike Authority, Revenue, Refunding (Dallas North Thruway)
4.75%, 1/1/2012 (Insured; AMBAC).......................................... 1,620,000 1,481,166
Tomball Hospital Authority, Revenue, Refunding 6%, 7/1/2013................. 5,000,000 4,828,600
Tyler Texas Health Facility Development Corp., HR
(East Texas Medical Center Regional Health) 6.625%, 11/1/2011............. 1,820,000 1,850,176
West Side Calhoun County Navigation District, SWDR
(Union Carbide Chemical and Plastics) 8.20%, 3/15/2021.................... 500,000 559,985
U.S. Related-2.3%
Puerto Rico Electric Power Authority, Power Revenue
5.25%, 7/1/2021........................................................... 2,000,000 1,838,060
------
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $72,361,596)........................................................ $75,077,943
======
</TABLE>

PREMIER STATE MUNICIPAL BOND FUND, TEXAS SERIES
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1996 (UNAUDITED)
Principal
Short-Term Municipal Investments-4.3% Amount Value
<S> <C> <C>
------ ------
Texas;
Trinity River Authority, PCR, VRDN (Texas Utilities Electric Co. Project), 3.70% (d)
(cost $3,400,000)......................................................... $ 3,400,000 $ 3,400,000
======
TOTAL INVESTMENTS-100.0%
(cost $75,761,596)........................................................ $78,477,943
======
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>

Summary of Abbreviations
AMBAC American Municipal Bond Assurance Corporation MFHR Multi-Family Housing Revenue
FGIC Financial Guaranty Insurance Company PCR Pollution Control Revenue
FSA Financial Security Assurance SWDR Solid Waste Disposal Revenue
HR Hospital Revenue VRDN Variable Rate Demand Notes
LR Lease Revenue
MBIA Municipal Bond Investors Assurance
Insurance Corporation
</TABLE>

Summary of Combined Ratings
Fitch (e) or Moody's or Standard & Poor's Percentage of Value
- ---- ---- --------- ----------
<S> <C> <C> <C>

AAA Aaa AAA 48.0%
AA Aa AA 9.3
A A A 18.0
BBB Baa BBB 15.8
F1 MIG1/P1 SP1/A1 4.3
Not Rated (f) Not Rated (f) Not Rated (f) 4.6
----
100.0%
====
</TABLE>

Notes to Statement of Investments:
(a) Wholly held by custodian as collateral for delayed-delivery
security.
(b) Purchased on a delayed-delivery basis.
(c) Bonds which are prerefunded are collateralized by U.S. Government
securities which are held in escrow and are used to pay principal and
interest on the municipal issue and to retire the bonds in full at the
earliest refunding date.
(d) Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest rates.
(e) Fitch currently provides creditworthiness information for a limited
number of investments.
(f) Securities which, while not rated by Fitch, Moody's or Standard & Poor's
have been determined by the Manager to be of comparable quality to those
rated securities in which the Fund may invest.
(g) At October 31, 1996, the Fund had $21,148,638 (26.3% of net assets)
invested in securities whose payment of principal and interest is dependent
upon revenues generated from City Municipal General Obligations.

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, TEXAS SERIES
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1996 (UNAUDITED)
Cost Value
------ ------
<S> <C> <C> <C>

ASSETS: Investments in securities-See Statement of Investments $75,761,596 $78,477,943
Cash....................................... 520,400
Interest receivable........................ 1,448,700
Receivable for investment securities sold.. 1,388,778
Receivable for shares of Beneficial Interest subscribed 4,401
Prepaid expenses........................... 17,933
------
81,858,155
------
LIABILITIES: Due to Distributor......................... 24,661
Payable for investment securities purchased 1,309,402
Payable for shares of Beneficial Interest redeemed 6,100
Accrued expenses........................... 25,119
------
1,365,282
------
NET ASSETS.................................................................. $80,492,873
======
REPRESENTED BY: Paid-in capital............................ $76,798,047
Accumulated net realized gain (loss) on investments 978,479
Accumulated net unrealized appreciation (depreciation)
on investments-Note 3...................... 2,716,347
------
NET ASSETS.................................................................. $80,492,873
======
</TABLE>

NET ASSET VALUE PER SHARE
----------------

Class A Class B Class C
------ ------ ------
<S> <C> <C> <C>

Net Assets.................................................. $62,595,684 $17,822,106 $ 75,083
Shares Outstanding.......................................... 2,937,739 836,551 3,525
NET ASSET VALUE PER SHARE................................... $21.31 $21.30 $21.30
==== ==== ====
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.
<S> <C> <C> <C>

PREMIER STATE MUNICIPAL BOND FUND, TEXAS SERIES
STATEMENT OF OPERATIONS SIX MONTHS ENDED OCTOBER 31, 1996 (UNAUDITED)
INVESTMENT INCOME
INCOME Interest Income............................ $2,417,942
EXPENSES: Management fee-Note 2(a)................... $ 222,928
Shareholder servicing costs-Note 2(c)...... 122,496
Distribution fees-Note 2(b)................ 44,081
Registration fees.......................... 10,067
Professional fees.......................... 6,595
Custodian fees............................. 4,713
Prospectus and shareholders' reports....... 4,506
Trustees' fees and expenses-Note 2(d)...... 500
Miscellaneous.............................. 4,688
------
Total Expenses....................... 420,574
Less-Management fee waived due
to undertaking-Note 2(a)............... (222,928)
------
Net Expenses......................... 197,646
------
INVESTMENT INCOME-NET....................................................... 2,220,296
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 3:
Net realized gain (loss) on investments.... $ 461,188
Net unrealized appreciation (depreciation) on investments 1,322,987
------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 1,784,175
------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $4,004,471
======
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, TEXAS SERIES
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
October 31, 1996 Year Ended
(Unaudited) April 30, 1996
--------- -------
OPERATIONS:
<S> <C> <C>

Investment income-net.................................................... $ 2,220,296 $ 4,690,413
Net realized gain (loss) on investments.................................. 461,188 1,514,366
Net unrealized appreciation (depreciation) on investments................ 1,322,987 400,100
------ ------
Net Increase (Decrease) in Net Assets Resulting from Operations...... 4,004,471 6,604,879
------ ------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net:
Class A shares......................................................... (1,773,961) (3,789,456)
Class B shares......................................................... (444,473) (900,921)
Class C shares......................................................... (1,862) (36)
Net realized gain on investments:
Class A shares......................................................... _- (937,967)
Class B shares......................................................... _- (248,855)
Class C shares......................................................... _- (15)
------ ------
Total Dividends...................................................... (2,220,296) (5,877,250)
------ ------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares......................................................... 2,197,260 1,598,276
Class B shares......................................................... 511,380 1,221,189
Class C shares......................................................... 71,182 1,014
Dividends reinvested:
Class A shares......................................................... 785,393 2,309,470
Class B shares......................................................... 250,476 668,539
Class C shares......................................................... 26 51
Cost of shares redeemed:
Class A shares......................................................... (4,643,783) (9,766,053)
Class B shares......................................................... (788,826) (1,355,717)
------ ------
Increase (Decrease) in Net Assets from Beneficial Interest Transactions (1,616,892) (5,323,231)
------ ------
Total Increase (Decrease) in Net Assets............................ 167,283 (4,595,602)
NET ASSETS:
Beginning of Period...................................................... 80,325,590 84,921,192
------ ------
End of Period............................................................ $80,492,873 $80,325,590
====== ======
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, TEXAS SERIES
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Shares
------------------------------------
Six Months Ended
October 31, 1996 Year Ended
(Unaudited) April 30, 1996

--------- -------
CAPITAL SHARE TRANSACTIONS:
Class A
----
<S> <C> <C>

Shares sold.............................................................. 106,055 75,223
Shares issued for dividends reinvested................................... 37,379 108,052
Shares redeemed.......................................................... (221,934) (458,438)
---- ----
Net Increase (Decrease) in Shares Outstanding (78,500) (275,163)
==== ====
Class B
----
Shares sold.............................................................. 24,446 57,381
Shares issued for dividends reinvested................................... 11,923 31,283
Shares redeemed.......................................................... (37,685) (63,720)
---- ----
Net Increase (Decrease) in Shares Outstanding (1,316) 24,944
==== ====
Class C*
----
Shares sold.............................................................. 3,473 49
Shares issued for dividends reinvested................................... 1 2
---- ----
Net Increase (Decrease) in Shares Outstanding 3,474 51
==== ====
*From August 15, 1995 (commencement of initial offering) to April 30, 1996.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, TEXAS SERIES
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>

Net asset value, beginning of period.. $ 20.84 $20.69 $20.41 $21.23 $19.89 $19.25
--- --- --- --- --- ---
Investment Operations:
Investment income-net................. .59 1.20 1.22 1.25 1.29 1.36
Net realized and unrealized gain (loss)
on investments...................... .47 .45 .28 (.66) 1.37 .69
--- --- --- --- --- ---
Total from Investment Operations...... 1.06 1.65 1.50 .59 2.66 2.05
--- --- --- --- --- ---
Distributions:
Dividends from investment income-net.. (.59) (1.20) (1.22) (1.25) (1.29) (1.36)
Dividends from net realized gain on investments .- (.30) .- (.13) (.03) (.05)
Dividends in excess of net realized gain
on investments...................... .- .- .- (.03) .- .-
--- --- --- --- --- ---
Total Distributions................... (.59) (1.50) (1.22) (1.41) (1.32) (1.41)
--- --- --- --- --- ---
Net asset value, end of period........ $21.31 $20.84 $20.69 $20.41 $21.23 $19.89
=== === === === === ===
TOTAL INVESTMENT RETURN(1)................ 10.26% (2) 8.06% 7.63% 2.62% 13.80% 10.97%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .38% (2) .37% .37% .39% .36% .15%
Ratio of net investment income to
average net assets.................. 5.59% (2) 5.64% 6.01% 5.78% 6.18% 6.78%
Decrease reflected in above expense ratios
due to undertakings by the Manager.. .55% (2) .55% .55% .55% .62% .88%
Portfolio Turnover Rate............... 29.85%(3) 49.24% 38.68% 9.68% 14.94% 7.49%
Net Assets, end of period (000's Omitted) $62,596 $62,864 $68,103 $ 76,277 $ 72,037 $37,208
(1) Exclusive of sales load.
(2) Annualized.
(3) Not annualized.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, TEXAS SERIES
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>

Net asset value, beginning of period......... $20.84 $20.69 $20.41 $21.23 $20.52
--- --- --- --- ---
Investment Operations:
Investment income-net........................ .54 1.09 1.10 1.13 .33
Net realized and unrealized gain (loss)
on investments............................. .46 .45 .28 (.66) .71
--- --- --- --- ---
Total from Investment Operations............. 1.00 1.54 1.38 .47 1.04
--- --- --- --- ---
Distributions:
Dividends from investment income-net......... (.54) (1.09) (1.10) (1.13) (.33)
Dividends from net realized gain on investments .- (.30) .- (.13) .-
Dividends in excess of net realized gain on investments .- .- .- (.03) .-
--- --- --- --- ---
Total Distributions.......................... (.54) (1.39) (1.10) (1.29) (.33)
--- --- --- --- ---
Net asset value, end of period............... $21.30 $20.84 $20.69 $20.41 $21.23
=== === === === ===
TOTAL INVESTMENT RETURN(2)....................... 9.62% (3) 7.51% 7.05% 2.05% 17.60% (3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .89% (3) .88% .89% .94% .82% (3)
Ratio of net investment income
to average net assets...................... 5.08% (3) 5.13% 5.46% 5.15% 4.81% (3)
Decrease reflected in above expense ratios
due to undertakings by the Manager......... .55% (3) .55% .55% .54% .49% (3)
Portfolio Turnover Rate...................... 29.85% (4) 49.24% 38.68% 9.68% 14.94%
Net Assets, end of period (000's Omitted).... $17,822 $ 17,461 $16,818 $15,878 $6,373
(1) From January 15, 1993 (commencement of initial offering) to April 30, 1993.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.

</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

Class C Shares
------------------------------------
Six Months Ended
October 31, 1996 Year Ended
PER SHARE DATA: (Unaudited) April 30, 1996(1)
--------- --------
<S> <C> <C>

Net asset value, beginning of period................................ $20.83 $20.78
--- ---
Investment Operations:
Investment income-net............................................... .50 .73
Net realized and unrealized gain (loss)
on investments.................................................... .47 .35
--- ---
Total from Investment Operations.................................... .97 1.08
--- ---
Distributions:
Dividends from investment income-net................................ (.50) (.73)
Dividends from net realized gain on investments..................... .- (.30)
--- ---
Total Distributions................................................. (.50) (1.03)
--- ---
Net asset value, end of period...................................... $21.30 $20.83
=== ===
TOTAL INVESTMENT RETURN(2).............................................. 9.38% (3) 7.29% (3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............................. 1.18% (3) 1.18% (3)
Ratio of net investment income
to average net assets............................................. 4.59% (3) 4.77% (3)
Decrease reflected in above expense ratios
due to undertakings by the Manager................................ .54% (3) .58% (3)
Portfolio Turnover Rate............................................. 29.85% (4) 49.24%
Net Assets, end of period (000's Omitted)........................... $75 $1
(1) From August 15, 1995 (commencement of initial offering) to April 30, 1996.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.

</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, TEXAS SERIES
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:

Premier State Municipal Bond Fund (the "Trust") is registered under the
Investment Company Act of 1940 ("Act") as a non-diversified open-end management
investment company and operates as a series company currently offering twelve
series including the Texas Series (the "Fund"). The Fund's investment objective
is to maximize current income exempt from Federal and, where applicable, from
State income taxes, without undue risk. The Dreyfus Corporation ("Manager")
serves as the Fund's investment adviser. The Manager is a direct subsidiary of
Mellon Bank, N.A.

Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares. The Fund is authorized to issue an unlimited
number of $.001 par value shares in the following classes of shares: Class A,
Class B and Class C. Class A shares are subject to a sales charge imposed at the
time of purchase, Class B shares are subject to a contingent deferred sales
charge imposed at the time of redemption on redemptions made within six years of
purchase and Class C shares are subject to a contingent deferred sales charge
imposed at the time of redemption on redemptions made within one year of
purchase. Other differences between the three Classes include the services
offered to and the expenses borne by each Class and certain voting rights.

The Trust accounts separately for the assets, liabilities and operations of
each fund. Expenses directly attributable to each fund are charged to that
fund's operations; expenses which are applicable to all funds are allocated
among them on a pro rata basis.

The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.

The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations held
by the Fund.

(c) Dividends to shareholders: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to comply
with the distribution requirements of the Internal Revenue Code. To the extent
that net realized capital gain can be offset by capital loss carryovers, if any,
it is the policy of the Fund not to distribute such gain.

NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:

(a) Pursuant to a management agreement ("Agreement") with the Manager, the
management fee is computed at the annual rate of .55 of 1% of the value of the
Fund's average daily net assets and is payable monthly. The Agreement provides
that if in any full fiscal year the aggregate expenses, exclusive of taxes,
brokerage, interest on borrowings and extraordinary expenses, exceed the expense
limitation of any state having jurisdiction over the Fund, the Fund may deduct
from payments to be made to the Manager, or the Manager will bear the amount of
such excess to the extent required by state law. However, the Manager has
undertaken from May 1, 1996 to waive receipt of the management fee payable to it
by the Fund until such time as the net assets of the Fund exceed $100 million,
regardless of whether they remain at that level. The management fee waived,
pursuant to the undertaking, amounted to $222,928 during the period ended
October 31, 1996.

The undertaking may be extended, modified or terminated by the Manager,
provided that the resulting expense reimbursement would not be less than the
amount required pursuant to the Agreement.

(b) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the
Act, the Fund pays the Distributor for distributing the Fund's Class B and Class
C shares at an annual rate of .50 of 1% of the value of the average daily net
assets of Class B shares and .75 of 1% of the value of the average daily net
assets of Class C shares. During the period ended October 31, 1996, $43,776 was
charged to the Fund for the Class B shares and $305 was charged to the Fund for
the Class C shares.

(c) Under the Shareholder Services Plan, the Fund pays the Distributor at an
annual rate of .25 of 1% of the value of the average daily net assets of Class
A, Class B and Class C shares for the provision of certain services. The
services provided may include personal services relating to shareholder
accounts, such as answering shareholder inquiries regarding the Fund and
providing reports and other information, and services related to the maintenance
of shareholder accounts. The Distributor may make payments to Service Agents (a
securities dealer, financial institution or other industry professional) in
respect of these services. The Distributor determines the amounts to be paid to
Service Agents. During the period ended October 31, 1996, $79,341, $21,888 and
$102 were charged to Class A, B and C shares, respectively, by the Distributor
pursuant to the Shareholder Services Plan.

The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
the Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. Such compensation
amounted to $13,840 during the period ended October 31, 1996.

(d) Each trustee who is not an affiliated person as defined in the Act
receives from the Trust an annual fee of $2,500 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.

PREMIER STATE MUNICIPAL BOND FUND, TEXAS SERIES
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

NOTE 3-SECURITIES TRANSACTIONS:

The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended October 31, 1996
amounted to $22,992,909 and $27,677,506, respectively.

At October 31, 1996, accumulated net unrealized appreciation on investments
was $2,716,347, consisting of $2,941,930 gross unrealized appreciation and
$225,583 gross unrealized depreciation.

At October 31, 1996, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).

PREMIER STATE MUNICIPAL
BOND FUND, TEXAS SERIES
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York 90
Washington Street
New York, NY 10286
TRANSFER AGENT & DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940

Printed in U.S.A. 061/621SA9610
Semi-Annual Report
Premier State
Municipal Bond Fund
Texas Series
October 31, 1996
[Dreyfus lion/2hres logo]
<PAGE>

PREMIER STATE MUNICIPAL BOND FUND, VIRGINIA SERIES
LETTER TO SHAREHOLDERS

Dear Shareholder:

We are pleased to provide you with this report on the Premier State
Municipal Bond Fund - Virginia Series. For its semi-annual reporting period
ended October 31, 1996, your Series produced a total return of 6.16% for
Class A shares, 5.89% for Class B shares and 5.80% for Class C shares.*
Income dividends exempt from Federal and Virginia State personal income taxes
of approximately $.469 for Class A shares, $.427 for Class B shares and $.402
for Class C shares were paid.** This amounts to an annualized tax-free
distribution rate per share of 5.30%, 5.04% and 4.75% for Class A, Class B
and Class C shares, respectively.***

THE ECONOMY

The fear of another round of monetary tightening by the Federal Reserve
Board ("the Fed") to ward off a resurgence in inflation has so far proved
unwarranted. Indeed, despite solid economic growth resulting in the creation
of new jobs and an overall tightening in the labor market, inflation has
remained subdued. Both the Consumer and Producer Price Indexes remained at
annual rates in the 3% range. This is the fifth consecutive year of inflation
under 3%, the longest period since the 1960s. Despite the duration of the
economic recovery, most economic reports underscore the tepid nature of the
present inflationary environment.

The increase in long-term interest rates early this year may have
contributed to the recently reported slowdown in the rate of economic growth.
During the third quarter, the growth rate of Gross Domestic Product cooled to
2.2%, less than half the second quarter's strong 4.7% pace. Consumers - the
initiators of two thirds of all economic activity - remained cautious
throughout the year. In the third quarter, the pace of consumer spending was
at its slowest in five years. Consumer borrowing has also declined from
year-ago levels. Not surprisingly, retail sales growth has also been modest
this year. Consumers may have been restrained by wages not rising as rapidly
as had been previously suspected, given the strength in the labor market. The
Employment Cost Index, considered to be an important gauge of wage inflation
by Federal Reserve Board Chairman Alan Greenspan, rose just .6% in the third
quarter, the lowest reading in over a year. This brought the growth in wages
to 2.8% over the past twelve months, slightly less than the rate of inflation
as measured by the Consumer Price Index.

The booming housing market also seems to have cooled with both new
housing starts and existing home sales slackening since midyear. Industrial
production has slowed somewhat from its more rapid pace earlier in the year.
Given the level of capacity utilization, there appears to be no sign of
production bottlenecks that could push prices higher. Anecdotal evidence
still supports the assertion that corporations are reluctant to raise prices.
The report that the 1996 Federal budget deficit had shrunk to $107.3 billion
- - its lowest level in two decades - provided another favorable sign for
inflation. The final reading of the 1996 deficit marks the fourth straight
decline from fiscal 1992's record $290.4 billion.

Despite the relatively benign current environment for inflation, we are
alert for early signs of its potential resurgence. While wage increases so
far have remained modest, workers should eventually expect compensation that
at least matches their cost of living. Furthermore, we are mindful that price
increases in energy and food may not continue to be as restrained as they
were over the past four years.

MARKET ENVIRONMENT

Since our last letter to you at the end of April, when the bond market
corrected nearly 100 basis points in four months, the bond market has gone
through a transition. Long-term interest rates as measured by the 30-year U.S.
Treasury bond stabilized over the next five months, vacillating around the 7%
level until mid-October, when the market established a new trading range as the
Treasury bond market rallied to a 6.45% yield. The municipal market has also
gone through a period of stabilization during which the retail (or individual)
investor became very active, strengthening the demand for municipal bonds. The
more recent rally in fixed income securities is built on the continued
speculation that the Federal Reserve Board's Open Market Committee could
potentially ease credit in response to weakening economic data. The new lower
rates have brought many issuers back into the municipal marketplace. Recently,
at the time of the election, $10 billion in new supply had to be digested by the
tax-exempt market in two weeks, which caused municipal bond prices to cheapen
relative to taxables. The increase in yields reversed the trend of
outperformance by the municipal market that has characterized 1996. THE
PORTFOLIO The portfolio holds many high coupon bonds that help the Series derive
most of its total return from income. During this last six-month period we have
chosen to replace some existing holdings with either those that have better call
protection and coincidental upside price potential, or those with higher
liquidity features. On a security by security basis we have used these selection
criteria in analyzing the risk/return function of each bond purchased and sold.
Our criteria stress accomplishing these goals without compromising income or
losing sight of the portfolio in its totality. Currently, the duration (an
industry measurement of price responsiveness to changes in interest rates and
therefore price risk of the Series) is slightly longer, or more aggressive, than
it was at the time of our last letter, when it was slightly defensive overall
compared to other funds in our comparison group. As of the end of the reporting
period, the tax-exempt market was attractively valued compared to taxable fixed
income equivalents. We believe the current portfolio structure should serve the
portfolio well during a return to more conventional yield relationships or
through a repeated period of stabilization that we have experienced. Included in
this report is a series of detailed statements about the Series' holdings and
financial condition. We hope you find them informative and greatly appreciate
your support. Very truly yours,

[Richard J. Moynihan signature logo]

Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
November 15, 1996
New York, N.Y.

**Some income may be subject to the Federal Alternative Minimum Tax (AMT)
for certain shareholders. Income may be subject to some State and local taxes
for non-Virginia residents.

PREMIER STATE MUNICIPAL BOND FUND, VIRGINIA SERIES
STATEMENT OF INVESTMENTS OCTOBER 31, 1996 (UNAUDITED)
<S> <C> <C>

Principal
Long-Term Municipal Investments-94.6% Amount Value
_______ ______
Virginia-69.2%
Alexandria Redevelopment and Housing Authority,
Multi-Family Housing Mortgage Revenue (Buckingham Village Apartments)
6.125%, 7/1/2021........................................................ $ 3,000,000 $ 3,029,910
Augusta County Industrial Development Authority, HR
(Augusta Hospital Corp. Project) 7%, 9/1/2021 (Prerefunded 9/1/2001) (a) 2,750,000 3,085,307
Capital Region Airport Commission, Airport Revenue
(Richmond International Airport Projects) 5.625%, 7/1/2025 (Insured; AMBAC) 3,000,000 2,991,270
Chesapeake, Water and Sewer System Revenue, Refunding 6.50%, 7/1/2012....... 1,000,000 1,066,520
Chesapeake Bay Bridge and Tunnel District, General Resolution Revenue,
Refunding 5%, 7/1/2022 (Insured; MBIA).................................. 5,410,000 4,966,921
Chesapeake Hospital Authority, Hospital Facility Revenue, Refunding
(Chesapeake General Hospital) 5.25%, 7/1/2018 (Insured; MBIA)........... 1,000,000 942,550
Covington-Alleghany County Industrial Development Authority,
Hospital Facility Revenue (Alleghany Regional Hospital)
6.875%, 4/1/2022 (Prerefunded 4/1/2002) (a)............................. 1,000,000 1,111,080
Fairfax County Park Authority, Park Facilities Revenue
6.625%, 7/15/2020....................................................... 2,665,000 2,771,787
Fairfax County Water Authority, Water Revenue:
5%, 4/1/2016............................................................ 2,000,000 1,875,820
7.427%, 4/1/2029 (b,c).................................................. 2,000,000 1,938,000
Hanover County Industrial Development Authority, HR
(Memorial Regional Medical Center Project) 5.50%, 8/15/2025 (Insured; MBIA) 1,000,000 969,710
Harrisonburg Redevelopment and Housing Authority,
MFHR, Refunding (Hanover Crossing Apartments Project) 6.35%, 3/1/2023... 2,000,000 2,047,800
Industrial Development Authority of the City of Williamsburg,
Hospital Facility Revenue (Williamsburg Community Hospital) 5.75%, 10/1/2022 2,000,000 1,895,620
Industrial Development Authority of Giles County,
Exempt Facility Revenue (Hoechst Celanese Corp. Project)
5.95%, 12/1/2025........................................................ 3,000,000 3,041,130
Industrial Development Authority of the County of Henrico,
SWDR (Browning-Ferris Industries of South Atlantic, Inc. Project)
5.45%, 1/1/2014......................................................... 3,500,000 3,416,665
Industrial Development Authority of the County of Prince William,
Hospital Facility Revenue (Potomac Hospital Corp. of Prince William)
6.85%, 10/1/2025........................................................ 1,000,000 1,071,850
Industrial Development Authority of the Town of West Point,
SWDR (Chesapeake Corp. Project) 6.375%, 3/1/2019........................ 2,500,000 2,515,425
Nelson County Service Authority, Water and Sewer Revenue, Refunding
5.50%, 7/1/2018 (Insured; FGIC)......................................... 1,750,000 1,707,685
Prince William County Park Authority, Revenue
6.875%, 10/15/2016...................................................... 3,000,000 3,242,160

PREMIER STATE MUNICIPAL BOND FUND, VIRGINIA SERIES
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1996 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
______ ______
Virginia (continued)
Rector and Visitors of the University of Virginia, General Revenue Pledge
5.375%, 6/1/2020........................................................ $ 3,000,000 $ 2,887,410
Richmond Industrial Development Authority, HR (Retreat Hospital)
7.35%, 7/1/2021 (Prerefunded 7/1/2001) (a).............................. 1,900,000 2,148,197
Richmond Metropolitan Authority, Expressway Revenue, Refunding
6.375%, 7/15/2016 (Insured; FGIC)....................................... 1,500,000 1,596,390
Southeastern Public Service Authority, Revenue
5.125%, 7/1/2013 (Insured; MBIA)........................................ 2,850,000 2,729,616
Staunton Industrial Development Authority,
Educational Facilities Revenue, Refunding (Mary Baldwin College)
6.75%, 11/1/2021........................................................ 3,145,000 3,177,771
University of Virginia, University Revenue
5.75%, 5/1/2021 (d)..................................................... 2,325,000 2,301,750
Upper Occoquan Sewer Authority, Regional Sewer Revenue:
6.50%, 7/1/2017 (Insured; MBIA) (Prerefunded 7/1/2001) (a).............. 1,000,000 1,102,410
5%, 7/1/2025 (Insured; MBIA) (e)........................................ 4,000,000 3,656,440
Virginia Beach Development Authority,
Nursing Home Revenue (Sentara Life Care Corp.) 7.75%, 11/1/2021......... 1,000,000 1,110,360
Virginia Housing Development Authority
Commonwealth Mortgage:
6.60%, 7/1/2020....................................................... 2,900,000 2,990,074
6.85%, 1/1/2027....................................................... 2,000,000 2,070,580
Multi-Family Refunding 5.90%, 11/1/2017................................. 1,000,000 1,011,120
U. S. Related-25.4%
Guam Airport Authority, Revenue 6.70%, 10/1/2023............................ 2,000,000 2,059,980
Guam Power Authority, Revenue 6.30%, 10/1/2022.............................. 1,750,000 1,782,585
Commonwealth of Puerto Rico:
5.40%, 7/1/2025......................................................... 3,000,000 2,835,030
(Public Improvement) 6.80%, 7/1/2021 (Prerefunded 7/1/2002) (a)......... 1,000,000 1,129,520
Puerto Rico Highway and Transportation Authority, Highway Revenue:
6.625%, 7/1/2018 (Prerefunded 7/1/2002) (a)............................. 2,000,000 2,242,200
5.50%, 7/1/2026......................................................... 5,000,000 4,798,600
Puerto Rico Industrial Tourist Educational, Medical and Environmental
Control Facilities Financing Authority,
Industrial Revenue (Teachers Retirement Systems):
5.50%, 7/1/2016....................................................... 1,150,000 1,141,030
5.50%, 7/1/2021....................................................... 1,800,000 1,762,974
Virgin Islands Public Finance Authority, Revenue, Refunding, Matching Fund
Loan Notes
7.25%, 10/1/2018........................................................ 4,000,000 4,286,560
Virgin Islands Territory (Hugo Insurance Claims Fund Program)
7.75%, 10/1/2006........................................................ 1,550,000 1,678,464

PREMIER STATE MUNICIPAL BOND FUND, VIRGINIA SERIES
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1996 (UNAUDITED)
Principal
Long-Term Municipal Investments (continued) Amount Value
_______ ______
U. S. Related (continued)
Virgin Islands Water and Power Authority, Electric System
7.40%, 7/1/2011......................................................... $ 2,000,000 $ 2,137,140
______
TOTAL LONG-TERM MUNICIPAL INVESTMENTS
(cost $93,724,729)...................................................... $ 96,323,411
=======
Short-Term Municipal Investments-5.4%
U.S. Related:
Commonwealth of Puerto Rico Government Development Bank:
CP 3.55%, 11/15/1996.................................................... $ 1,500,000 $ 1,500,090
Refunding, VRDN 3.30%, (LOC; Credit Suisse) (f,g)....................... 4,000,000 4,000,000
______
TOTAL SHORT-TERM MUNICIPAL INVESTMENTS
(cost $5,500,000)....................................................... $ 5,500,090
=======
TOTAL INVESTMENTS-100.0%
(cost $99,224,729)...................................................... $101,823,501

===========
</TABLE>

Summary of Abbreviations
AMBAC American Municipal Bond Assurance Corporation MBIA Municipal Bond Investors Assurance
CP Commercial Paper Insurance Corporation
FGIC Financial Guaranty Insurance Company MFHR Multi-Family Housing Revenue
HR Hospital Revenue SWDR Solid Waste Disposal Revenue
LOC Letter of Credit VRDN Variable Rate Demand Notes

</TABLE>

Summary of Combined Ratings
Fitch (h) or Moody's or Standard & Poor's Percentage of Value
___ ____ ________ _________
AAA Aaa AAA 26.4%
AA Aa AA 17.9
A A A 28.1
BBB Baa BBB 11.1
F1 MIG1/P1 SP1/A1 5.4
Not Rated (i) Not Rated (i) Not Rated (i) 11.1
_____
100.0%
====
</TABLE>

Notes to Statement of Investments:
(a)Bonds which are prerefunded are collateralized by U.S. Government
securities which are held in escrow and are used to pay principal and
interest on the municipal issue and to retire the bonds in full at the
earliest refunding date.
(b)Inverse Floater Security - the interest rate is subject to change
periodically.
(c)Security exempt from registration under Rule 144A of the Securities Act
of 1933. This security may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At October 31,
1996, this security amounted to $1,938,000 or 2.0% of net assets.
(d)Purchased on a delayed-delivery basis.
(e)Wholly held by custodian as collateral for delayed-delivery security.
(f)Secured by letters of credit.
(g)Securities payable on demand. The interest rate, which is subject to
change, is based upon prime rates or an index of market interest rates.
(h)Fitch currently provides creditworthiness information for a limited
number of investments.
(i)Securities which, while not rated by Fitch, Moody's or Standard & Poor's
have been determined by the Manager to be of comparable quality to those
rated securities in which the Fund may invest.
SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, VIRGINIA SERIES
STATEMENT OF ASSETS AND LIABILITIES OCTOBER 31, 1996 (UNAUDITED)
Cost Value
_______ ______
<S> <C> <C> <C>

ASSETS: Investments in securities-See Statement of Investments $ 99,224,729 $ 101,823,501
Interest receivable........................ 1,490,021
Receivable for shares of Beneficial Interest subscribed 28,203
Prepaid expenses........................... 2,706
_______
103,344,431
_______
LIABILITIES: Due to Distributor......................... 36,042
Cash overdraft due to Custodian............ 2,240,628
Payable for investment securities purchased 2,311,034
Payable for shares of Beneficial Interest redeemed 33,847
Accrued expenses .......................... 29,670
_______
4,651,221
_______
NET ASSETS.................................................................. $ 98,693,210
=======
REPRESENTED BY: Paid-in capital............................ $ 96,381,819
Accumulated net realized gain (loss) on investments (287,381)
Accumulated net unrealized appreciation (depreciation)
on investments-Note 3...................... 2,598,772
_______
NET ASSETS ................................................................. $ 98,693,210
=======
</TABLE>

NET ASSET VALUE PER SHARE
_________________

Class A Class B Class C
______ ______ ______
<S> <C> <C> <C>

Net Assets.................................................. $ 63,079,334 $ 35,046,605 $567,271
Shares Outstanding.......................................... 3,756,633 2,087,345 33,796
NET ASSET VALUE PER SHARE................................... $16.79 $16.79 $16.79
==== ==== ====

</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

<S> <C> <C> <C>
PREMIER STATE MUNICIPAL BOND FUND, VIRGINIA SERIES
STATEMENT OF OPERATIONS SIX MONTHS ENDED OCTOBER 31, 1996 (UNAUDITED)
INVESTMENT INCOME
INCOME Interest Income............................ $2,929,744
EXPENSES: Management fee-Note 2(a)................... $ 267,498
Shareholder servicing costs-Note 2(c)...... 160,387
Distribution fees-Note 2(b)................ 87,496
Prospectus and shareholders' reports....... 5,947
Professional fees.......................... 5,236
Custodian fees............................. 5,004
Registration fees.......................... 1,229
Trustees' fees and expenses-Note 2(d)...... 547
Miscellaneous.............................. 4,724
______
Total Expenses......................... 538,068
Less-Management Fee waived due to
undertaking-Note 2(a).................. (267,498)
______
Net Expenses........................... 270,570
______
INVESTMENT INCOME-NET....................................................... 2,659,174
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 3:
Net realized gain (loss) on investments.... $ (29,990)
Net unrealized appreciation (depreciation) on investments 3,101,749
______
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 3,071,759
______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $5,730,933
======
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
<CAPTION>

PREMIER STATE MUNICIPAL BOND FUND, VIRGINIA SERIES
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
October 31, 1996 Year Ended
(Unaudited) April 30, 1996
________ _______
OPERATIONS:
<S> <C> <C>

Investment income-net.................................................... $ 2,659,174 $ 5,146,160
Net realized gain (loss) on investments.................................. (29,990) 1,771,595
Net unrealized appreciation (depreciation) on investments................ 3,101,749 (539,154)
______ ______
Net Increase (Decrease) in Net Assets Resulting from Operations...... 5,730,933 6,378,601
______ ______
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net:
Class A shares......................................................... (1,765,009) (3,546,219)
Class B shares......................................................... (886,184) (1,598,256)
Class C shares......................................................... (7,981) (1,685)
______ ______
Total Dividends...................................................... (2,659,174) (5,146,160)
______ ______
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold:
Class A shares......................................................... 1,861,475 4,126,648
Class B shares......................................................... 2,058,396 5,468,182
Class C shares......................................................... 416,452 171,138
Dividends reinvested:
Class A shares......................................................... 883,150 1,849,325
Class B shares......................................................... 438,177 812,093
Class C shares......................................................... 2,357 1,041
Cost of shares redeemed:
Class A shares......................................................... (2,785,101) (8,185,998)
Class B shares......................................................... (1,661,760) (2,280,799)
Class C shares......................................................... (26,463) _
______ ______
Increase (Decrease) in Net Assets from Beneficial Interest Transactions 1,186,683 1,961,630
______ ______
Total Increase (Decrease) in Net Assets.......................... 4,258,442 3,194,071
NET ASSETS:
Beginning of Period...................................................... 94,434,768 91,240,697
______ ______
End of Period............................................................ $98,693,210 $94,434,768
====== ======
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, VIRGINIA SERIES
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
Shares
__________________________________
Six Months Ended
October 31, 1996 Year Ended
(Unaudited) April 30, 1996
________ _______
CAPITAL SHARE TRANSACTIONS:
Class A
____
<S> <C> <C>

Shares sold............................................................ 113,206 249,234
Shares issued for dividends reinvested................................. 53,445 111,225
Shares redeemed........................................................ (169,026) (494,748)
______ ______
Net Increase (Decrease) in Shares Outstanding (2,375) (134,289)
====== ======
Class B
____
Shares sold............................................................ 125,593 328,113
Shares issued for dividends reinvested................................. 26,514 48,831
Shares redeemed........................................................ (100,942) (137,908)
______ ______
Net Increase (Decrease) in Shares Outstanding 51,165 239,036
====== ======
Class C*
____
Shares sold............................................................ 25,110 10,131
Shares issued for dividends reinvested................................. 142 63
Shares redeemed........................................................ (1,650) -
______ ______
Net Increase (Decrease) in Shares Outstanding 23,602 10,194
====== ======
______________________________
* From August 15, 1995 (commencement of initial offering) to April 30, 1996.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, VIRGINIA SERIES
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.

Class A Shares
______________________________________________________________________
Six Months Ended
October 31, 1996 Year Ended April 30,
___________________________________________________
PER SHARE DATA: (Unaudited) 1996 1995 1994 1993 1992(1)
_____ ___ ___ ___ ___ ___-
<S> <C> <C> <C> <C> <C> <C>

Net asset value, beginning of period.. $16.27 $16.03 $16.02 $16.80 $15.50 $15.00
___ ___ ___ ___ ___ ___
Investment Operations:
Investment income-net................. .47 .93 .94 .97 1.00 .78
Net realized and unrealized gain (loss)
on investments...................... .52 .24 .04 (.75) 1.31 .50
___ ___ ___ ___ ___ ___
Total from Investment Operations...... .99 1.17 .98 .22 2.31 1.28
___ ___ ___ ___ ___ ___
Distributions:
Dividends from investment income-net.. (.47) (.93) (.94) (.97) (1.00) (.78)
Dividends from net realized gain on investments .- .- .- (.01) (.01) .-
Dividends in excess of net realized gain
on investments...................... .- .- (.03) (.02) .- .-
___ ___ ___ ___ ___ ___
Total Distributions................... (.47) (.93) (.97) (1.00) (1.01) (.78)
___ ___ ___ ___ ___ ___
Net asset value, end of period........ $16.79 $16.27 $16.03 $16.02 $16.80 $15.50
=== === === === === ===
TOTAL INVESTMENT RETURN(2)................ 12.22% (3) 7.32% 6.39% 1.10% 15.32% 11.54% (3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .37% (3) .50% .39% .46% .27% .-
Ratio of net investment income
to average net assets............... 5.66% (3) 5.58% 5.93% 5.64% 6.02% 6.42% (3)
Decrease reflected in above expense ratios
due to undertakings by the Manager.. .55% (3) .55% .55% .55% .76% 1.22% (3)
Portfolio Turnover Rate............... 18.66% (4) 50.06% 21.60% 30.69% 9.32% 5.96% (4)
Net Assets, end of period (000's Omitted) $63,079 $61,149 $62,428 $65,279 $55,627 $23,096
_________________________
(1) From August 1, 1991 (commencement of operations) to April 30, 1992.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, VIRGINIA SERIES
FINANCIAL HIGHLIGHTS (CONTINUED)

Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.
<TABLE>
<CAPTION>

Class B Shares
_________________________________________________
Six Months Ended
October 31, 1996 Year Ended April 30,
______________________________________
PER SHARE DATA: (Unaudited) 1996 1995 1994 1993(1)
_____ ___ ___ ___ ___
<S> <C> <C> <C> <C> <C>

Net asset value, beginning of period......... $16.27 $16.03 $16.02 $16.80 $16.25
___ ___ ___ ___ ___
Investment Operations:
Investment income-net........................ .43 .84 .85 .88 .26
Net realized and unrealized gain (loss)
on investments............................. .52 .24 .04 (.75) .55
___ ___ ___ ___ ___
Total from Investment Operations............. .95 1.08 .89 .13 .81
___ ___ ___ ___ ___
Distributions:
Dividends from investment income-net......... (.43) (.84) (.85) (.88) (.26)
Dividends from net realized gain on investments .- .- .- (.01) .-
Dividends in excess of net realized gain on investments .- .- (.03) (.02) .-
___ ___ ___ ___ ___
Total Distributions.......................... (.43) (.84) (.88) (.91) (.26)
___ ___ ___ ___ ___
Net asset value, end of period............... $16.79 $16.27 $16.03 $16.02 $16.80
=== === === === ===
TOTAL INVESTMENT RETURN(2)....................... 11.68% (3) 6.77% 5.83% .54% 17.22% (3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .88%(3) 1.01% .90% 1.01% .83% (3)
Ratio of net investment income
to average net assets...................... 5.14% (3) 5.06% 5.40% 5.02% 4.62% (3)
Decrease reflected in above expense ratios
due to undertakings by the Manager......... .55% (3) .55% .55% .54% .54% (3)
Portfolio Turnover Rate...................... 18.66% (4) 50.06% 21.60% 30.69% 9.32% (3)
Net Assets, end of period (000's Omitted).... $35,047 $33,120 $28,813 $25,254 $8,402
_________________________
(1) From January 15, 1993 (commencement of initial offering) to April 30, 1993.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>

PREMIER STATE MUNICIPAL BOND FUND, VIRGINIA SERIES
FINANCIAL HIGHLIGHTS (CONTINUED)

Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This information
has been derived from the Fund's financial statements.

Class C Shares
_________________-_________________-
Six Months Ended
October 31, 1996 Year Ended
PER SHARE DATA: (Unaudited) April 30, 1996(1)
________- _______-

Net asset value, beginning of period................................ $16.26 $16.17
___ ___
Investment Operations:
Investment income-net............................................... .40 .57
Net realized and unrealized gain (loss)
on investments.................................................... .53 .09
___ ___
Total from Investment Operations.................................... .93 .66
___ ___
Distributions:
Dividends from investment income-net................................ (.40) (.57)
___ ___
Net asset value, end of period...................................... $16.79 $16.26
=== ===
TOTAL INVESTMENT RETURN(2).............................................. 11.51% (3) 5.64% (3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............................. 1.16% (3) 1.21% (3)
Ratio of net investment income
to average net assets............................................. 4.71% (3) 4.55% (3)
Decrease reflected in above expense ratios
due to undertakings by the Manager................................ .54% (3) .52% (3)
Portfolio Turnover Rate............................................. 18.66% (4) 50.06%
Net Assets, end of period (000's Omitted)........................... $567 $166
_________________________
(1) From August 15, 1995 (commencement of initial offering) to April 30, 1996.
(2) Exclusive of sales load.
(3) Annualized.
(4) Not annualized.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.

PREMIER STATE MUNICIPAL BOND FUND, VIRGINIA SERIES
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:

Premier State Municipal Bond Fund (the "Trust") is registered under the
Investment Company Act of 1940 ("Act") as a non-diversified open-end
management investment company and operates as a series company currently
offering twelve series including the Virginia Series (the "Fund"). The Fund's
investment objective is to maximize current income exempt from Federal and,
where applicable, from State income taxes, without undue risk. The Dreyfus
Corporation ("Manager") serves as the Fund's investment adviser. The Manager
is a direct subsidiary of Mellon Bank, N.A.

Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares. The Fund is authorized to issue an
unlimited number of $.001 par value shares in the following classes of
shares: Class A, Class B and Class C. Class A shares are subject to a sales
charge imposed at the time of purchase, Class B shares are subject to a
contingent deferred sales charge imposed at the time of redemption on
redemptions made within six years of purchase and Class C shares are subject
to a contingent deferred sales charge imposed at the time of redemption on
redemptions made within one year of purchase. Other differences between the
three Classes include the services offered to and the expenses borne by each
Class and certain voting rights.

The Trust accounts separately for the assets, liabilities and operations
of each fund. Expenses directly attributable to each fund are charged to that
fund's operations; expenses which are applicable to all funds are allocated
among them on a pro rata basis.

The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.

(a) Portfolio valuation: The Fund's investments (excluding options and
financial futures on municipal and U.S. treasury securities) are valued each
business day by an independent pricing service ("Service") approved by the
Board of Trustees. Investments for which quoted bid prices are readily
available and are representative of the bid side of the market in the
judgment of the Service are valued at the mean between the quoted bid prices
(as obtained by the Service from dealers in such securities) and asked prices
(as calculated by the Service based upon its evaluation of the market for
such securities). Other investments (which constitute a majority of the
portfolio securities) are carried at fair value as determined by the Service,
based on methods which include consideration of: yields or prices of
municipal securities of comparable quality, coupon, maturity and type;
indications as to values from dealers; and general market conditions. Options
and financial futures on municipal and U.S. treasury securities are valued at
the last sales price on the securities exchange on which such securities are
primarily traded or at the last sales price on the national securities market
on each business day. Investments not listed on an exchange or the national
securities market, or securities for which there were no transactions, are
valued at the average of the most recent bid and asked prices. Bid price is
used when no asked price is available.

(b) Securities transactions and investment income: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income, adjusted for amortization of premiums and original issue discounts on
investments, is earned from settlement date and recognized on the accrual
basis. Securities purchased or sold on a when-issued or delayed-delivery
basis may be settled a month or more after the trade date.

The Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations held
by the Fund.

(c) Dividends to shareholders: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to
comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, it is the policy of the Fund not to distribute such gain.

(d) Federal income taxes: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax exempt
dividends, by complying with the applicable provisions of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from substantially all Federal income and
excise taxes.

The Fund has an unused capital loss carryover of approximately $148,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to April 30, 1996. If not
applied, the carryover expires in fiscal 2003.

NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:

(a) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is computed at the annual rate of .55 of 1% of the value
of the Fund's average daily net assets and is payable monthly. The Agreement
provides that if in any full fiscal year the aggregate expenses of the Fund,
exclusive of taxes, brokerage, interest on borrowings and extraordinary
expenses, exceed the expense limitation of any state having jurisdiction over
the Fund, the Fund may deduct from payments to be made to the Manager, or the
Manager will bear the amount of such excess to the extent required by state
law. However, the Manager has undertaken from May 1, 1996 to waive receipt of
the management fee payable to it by the Fund until such time as the net
assets of the Fund exceed $100 million, regardless of whether they remain at
that level. The management fee waived, pursuant to the undertaking, amounted
to $267,498 during the period ended October 31, 1996.

The undertaking may be extended, modified or terminated by the Manager,
provided that the resulting expense reimbursement would not be less than the
amount required pursuant to the Agreement.

Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager,
retained $18 during the period ended October 31, 1996, from commissions
earned on sales of the Fund's shares.

(b) Under the Distribution Plan adopted pursuant to Rule 12b-1 under the
Act, the Fund pays the Distributor for distributing the Fund's Class B and
Class C shares at an annual rate of .50 of 1% of the value of the average
daily net assets of Class B shares and .75 of 1% of the value of the average
daily net assets of Class C shares. During the period ended October 31, 1996,
$86,226 was charged to the Fund for the Class B shares and $1,270 was charged
to the Fund for the Class C shares.

(c) Under the Shareholder Services Plan, the Fund pays the Distributor at
an annual rate of .25 of 1% of the value of the average daily net assets of
Class A, Class B and Class C shares for the provision of certain services. The
services provided may include personal services relating to shareholder
accounts, such as answering shareholder inquiries regarding the Fund and
providing reports and other information, and services related to the maintenance
of shareholder accounts. The Distributor may make payments to Service Agents (a
securities dealer, financial institution or other industry professional) in
respect of these services. The Distributor determines the amounts to be paid to
Service Agents. During the period ended October 31, 1996, $78,054, $43,113 and
$423 were charged to Class A, B and C shares, respectively, by the Distributor
pursuant to the Shareholder Services Plan.

The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
the Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. Such
compensation amounted to $23,290 during the period ended October 31, 1996.

(d) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Trust an annual fee of $2,500 and an attendance fee of $250
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.

NOTE 3-SECURITIES TRANSACTIONS:

The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended October 31, 1996
amounted to $19,170,727 and $17,713,715, respectively.

At October 31, 1996, accumulated net unrealized appreciation on
investments was $2,598,772, consisting of $3,376,489 gross unrealized
appreciation and $777,717 gross unrealized depreciation.

At October 31, 1996, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).

[Dreyfus lion "d" logo]
PREMIER STATE MUNICIPAL
BOND FUND, VIRGINIA SERIES
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940

Printed in U.S.A. 066/625SA9610
[Dreyfus logo]
Semi-Annual Report
Premier State
Municipal Bond Fund
Virginia Series
October 31, 1996