COLONIAL FLORIDA TAX-EXEMPT FUND
COLONIAL CONNECTICUT TAX-EXEMPT FUND
COLONIAL NEW YORK TAX-EXEMPT FUND
COLONIAL NORTH CAROLINA TAX-EXEMPT FUND
Supplement to Prospectus dated
May 30, 1997, Revised November 7, 1997
Effective immediately the expense limit to which the Adviser has agreed is
increased to 0.60% for the above referenced Funds. Therefore, the caption Annual
Operating Expenses is revised as follows:
Annual Operating Expenses (as a % of net assets)
<TABLE>
<CAPTION>
Connecticut Florida
----------------------------------- ----------------------------------
Class A Class B Class C Class A Class B Class C
<S> <C> <C> <C> <C> <C> <C> <C>
Management fee (after waiver)(9) 0.35% 0.35% 0.35% 0.27% 0.27% 0.27%
12b-1 fees (after waiver)(7) 0.14 0.89 0.59(8) 0.16 0.91 0.61(8)
Other expenses 0.25 0.25 0.25 0.33 0.33 0.33
---- ---- ---- ---- ---- ----
Total operating expenses (after waiver)(9) 0.74% 1.49% 1.19% 0.76% 1.51% 1.21%
==== ==== ==== ==== ==== ====
</TABLE>
<TABLE>
<CAPTION>
New York North Carolina
----------------------------------- -----------------------------------
Class A Class B Class C Class A Class B Class C
<S> <C> <C> <C> <C> <C> <C> <C>
Management fee (after waiver)(9) 0.32% 0.32% 0.32% 0.15% 0.15% 0.15%
12b-1 fees (after waiver)(7) 0.15 0.90 0.60(8) 0.15 0.90 0.60(8)
Other expenses 0.28 0.28 0.28 0.45 0.45 0.45
---- ---- ---- ---- ---- ----
Total operating expenses(after waiver)(9) 0.75% 1.50% 1.20% 0.75% 1.50% 1.20%
==== ==== ==== ==== ==== ====
</TABLE>
Without voluntary fee waivers/expense limits that the Adviser/Distributor may
discontinue at anytime without shareholder approval, Annual Operating Expenses
would be:
<TABLE>
<CAPTION>
Connecticut Florida
---------------------------------------- -------------------------------------
Class A Class B Class C Class A Class B Class C
<S> <C> <C> <C> <C> <C> <C>
Management fee 0.51% 0.51% 0.51% 0.51% 0.51% 0.51%
12b-1 fees(7) 0.14 0.89 0.89 0.16 0.91 0.91
Other expenses 0.25 0.25 0.25 0.33 0.33 0.33
---- ---- ---- ---- ---- ----
Total operating expenses 0.90% 1.65% 1.65% 1.00% 1.75% 1.75%
==== ==== ==== ==== ==== ====
</TABLE>
<TABLE>
<CAPTION>
New York North Carolina
---------------------------------------- -------------------------------------
Class A Class B Class C Class A Class B Class C
<S> <C> <C> <C> <C> <C> <C>
Management fee 0.51% 0.51% 0.51% 0.51% 0.51% 0.51%
12b-1 fees(7) 0.15 0.90 0.90 0.15 0.90 0.90
Other expenses 0.28 0.28 0.28 0.45 0.45 0.45
---- ---- ---- ---- ---- ----
Total operating expenses 0.94% 1.69% 1.69% 1.11% 1.86% 1.86%
==== ==== ==== ==== ==== ====
</TABLE>
(7) The 12b-1 service fee rate will fluctuate but will not exceed 0.25%.
(8) The Distributor has voluntarily agreed to waive 0.30% of the Rule 12b-1
distribution fee. The Distributor may terminate the fee waiver at any
time without shareholder approval. See "12b-1 Plan" in the Prospectus.
(9) Effective January 1, 1998, "Total operating expenses" (excluding
brokerage, interest, taxes, 12b-1 distribution and service fees and
extraordinary expenses) are, until further notice, voluntarily limited
by the Adviser to 0.60% per annum of the Florida, New York, Connecticut
and North Carolina Funds average net assets. The Adviser may terminate
the fee waiver at any time without shareholder approval.
Example
The following Example shows the cumulative transaction and operating expenses
attributable to a hypothetical $1,000 investment in each Class of shares of each
Fund for the periods specified, assuming a 5% annual return, and, unless
otherwise noted, redemption at period end. The expense numbers in the Example
assume the fee waivers described above are in effect. The 5% return and expenses
used in the Example should not be considered indicative of actual or expected
Fund performance or expenses, both of which will vary.
<TABLE>
<CAPTION>
Connecticut Florida
------------------------------------------------------- -------------------------------------------------------
Class A Class B Class C Class A Class B Class C
Period: (10) (11) (10) (11) (10) (11) (10) (11)
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 year $ 55 $65 $15 $22 $12 $55 $65 $15 $22 $12
3 years 70 77 47 38(13) 38 71 78 48 38(13) 38
5 years 87 101 81 65 65 88 102 82 66 66
10 years 135 158(12) 158(12) 144 144 137 160(12) 160(12) 147 147
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
New York North Carolina
------------------------------------------------------ -------------------------------------------------------
Class A Class B Class C Class A Class B Class C
Period: (10) (11) (10) (11) (10) (11) (10) (11)
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 year $55 $65 $15 $22 $12 $ 55 $65 $15 $22 $12
3 years 70 77 47 38(13) 38 70 77 47 38(13) 38
5 years 87 102 82 66 66 87 102 82 66 66
10 years 136 159(12) 159(12) 145 145 136 159(12) 159(12) 145 145
</TABLE>
(10) Assumes redemption at period end.
(11) Assumes no redemption at period end.
(12) Class B shares automatically convert to Class A shares after
approximately 8 years; therefore, years 9 and 10 reflect Class A share
expenses.
(13) Class C shares do not incur a contingent deferred sales charge on
redemptions made after one year.
SP-36/661E-1297 January 10, 1998
