<PAGE>
<PAGE>
DEAR SHAREHOLDER:
As signs of stronger than expected economic growth appeared throughout the early
part of 1996, the unusual price appreciation that defined last year's bond rally
has given way to greater volatility.
Positive employment reports during the first quarter caused bond investors to
fear higher inflation which, if realized, would have hurt the value of fixed
income investments. So even though the likelihood of radical tax reform -- which
had kept municipal bonds from fully appreciating during the overall bond market
rally -- was diminished, the fear of inflation has kept municipal bond prices in
a holding pattern.
INVESTMENT BREAKDOWN:
THE NEW YORK TAX-EXEMPT INCOME
FUND, INC. AS OF 4/30/96(4)
[GRAPHIC REPRESENTATION of the ratings of the Fund's bonds by percentage: AAA =
61.2%, AA = 8.4%, A = 6.3%, BBB = 19.9% and BB = 4.2%.]
Within this environment, the Fund performed well, providing a total return at
net asset value of 1.39% over the past six months. During that period, the Fund
also paid shareholders tax-exempt income, with a 30-day yield of 6.52% as of
Aril 30, 1996.(1) For New York State residents in the 40.56% combined effective
tax bracket, this tax-free yield would have been equivalent to a taxable yield
of 10.97%.(2)
Recently, bond investors have begun to focus on yield. At the end of last year,
municipal bonds were trading at yields of more than 90% of U.S. Treasury bond
yields, compared to nearly 80% prior to tax reform debate that took place at the
beginning of the year.(3) When you convert these tax-exempt yields to their
taxable-equivalent yields, municipal bonds offer a significant premium over
Treasuries. Few investments with the creditworthiness of municipal bonds can
claim such high returns, although Treasuries have the lowest default risk of all
bonds. With inflation hovering at 3%, the case for municipal bond yields is all
the more compelling.
Going forward, we do not expect inflation to accelerate. We continue to believe
that the economy is growing but at a slow, steady pace, and that the economic
data creating current inflation worries willl lose its impact as the year
progresses. Should this occur, investors who bought municipal bonds when they
were discounted by the possibility of tax reform should realize price
appreciation as the market readjusts.
<PAGE>
<PAGE>
We will continue to conduct extensive research into individual bonds and issuers
to help investors take advantage of the current market. We believe our research
with help us identify the investments best poised to weather near-term
volatility, while providing a tax-exempt income stream and the possibility for
future price appreciation.
Thank you for your confidence in OppenheimerFunds. We look forward to helping
you reach your investment goals in the future.
Sincerely,
/s/ James C. Swain
James C. Swain
Chairman
The New York Tax-Exempt Income Fund, Inc.
/s/ Bridget A. Macaskill
Bridget A. Macaskill
President
The New York Tax-Exempt Income Fund, Inc.
April 30, 1996
1. Total return is based on the change in net asset value per share from 4/30/95
to 4/30/96, without deducting any brokerage costs.Dividend yield is determined
by annualizing the April 1996 dividend of $0.053 and dividing by the closing
price on the American Stock Exchange of $9.75 per share on 5/1/96 (payment
date). Past performance does not guarantee future results.
2. Assumes a combined effective tax bracket of 40.56% for New York state
residents, using the 36% federal and the maximum New York state income tax
rates, applied to the switch between taxable and nontaxable investments. A
portion of the Fund's distributions may be subject to income taxes. For
investors subject to alternative minimum income tax, a portion of the Fund's
distributions may increase that tax.
3. Source: Bond Buyer's Revenue Bond Index from 1/31/95 to 4/30/96.
4. Credit allocations and portfolio composition are subject to change. Chart is
based on total investments at market value rather than net assets.
<PAGE>
<PAGE>
STATEMENT OF INVESTMENTS April 30, 1996 (Unaudited)
The New York Tax-Exempt Income Fund, Inc.
<TABLE>
<CAPTION>
Market
Ratings: Value
Moody's/S&P's/Fitch's Face Amount See Note 1
---------------------- ----------- -----------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES -- 98.3%
NEW YORK -- 87.9%
Babylon, New York Industrial Development Agency Resource
Recovery Revenue Bonds, Ogden Martin Systems, Inc., Series
C, 8.50%, 1/1/19.......................................... Aaa/BBB+ $ 985,000 $ 1,099,080
City of New York General Obligation Bonds:
Prerefunded, Series A, 8.75%, 11/1/15..................... Aaa/AAA 1,000,000 1,086,740
Series D, 7.50%, 2/1/19................................... Baa1/BBB+ 1,300,000 1,406,075
City of New York Health & Hospital Corp. Revenue Refunding
Bonds, Series A, AMBAC Insured, Inverse Floater, 7.381%,
2/15/23(1)................................................ Aaa/AAA/AAA 1,000,000 867,547
City of New York Industrial Development Agency
Revenue Bonds, VISY Paper, Inc. Project, 7.95%, 1/1/28.... NR/NR 1,000,000 1,011,949
City of New York Municipal Water Finance Authority Water &
Sewer System Revenue Bonds, Prerefunded, Series A, 9%,
6/15/17................................................... Aaa/AAA 500,000 538,264
Dormitory Authority of the State of New York Revenue:
Bonds, Judicial Facilities Lease, Escrowed to Maturity,
BIG Insured, 7.375%, 7/1/16............................ Aaa/AAA 250,000 291,673
Refunding Bonds, Long Island Jewish Medical Center, Series
A, 7.75%, 8/15/27...................................... Aa/AAA 1,000,000 1,067,616
Metropolitan Transportation Authority of New York Revenue
Bonds, Transportation Facilities Service Contracts,
Prerefunded, Series 1, 8.50%, 7/1/17...................... Aaa/AAA 500,000 536,518
Municipal Assistance Corp. for the City of New York Revenue
Bonds:
Series 61, MBIA Insured, 6.875%, 7/1/07................... Aaa/AAA 500,000 523,801
Series 62, 6.90%, 7/1/07.................................. Aa/AA-/AA 500,000 522,797
New York State Energy Research & Development Authority:
Electric Facilities Revenue Bonds, Long Island Lighting
Co., Series C, 6.90%, 8/1/22........................... Ba1/BB+ 1,000,000 986,731
Gas Facilities Revenue Bonds, Brooklyn Union Gas Co.
Project, Series D, MBIA Insured, Inverse Floater,
7.489%, 7/8/26(1)...................................... Aaa/AAA/A 1,000,000 832,073
Pollution Control Revenue Bonds, Rochester Gas & Electric
Co. Project, Series C, 8.375%, 12/1/28................. Baa1/BBB+ 250,000 272,925
New York State General Obligation Refunding Bonds, 9.875%,
11/15/05.................................................. A/A-/A+ 400,000 538,378
New York State Housing Finance Agency:
Revenue Bonds, State University Construction Project,
Prerefunded, Series A, 8.30%, 5/1/18................... Aaa/AAA 750,000 813,714
Service Contract Revenue Bonds, Prerefunded, Series A,
7.375%, 9/15/21........................................ Aaa/AAA 575,000 660,448
New York State Medical Care Facilities Finance Agency
Revenue Bonds:
Bronx-Lebanon Hospital, Series A, BIG Insured, 7.10%,
2/15/27................................................ Aaa/AAA 1,000,000 1,030,406
</TABLE>
3
<PAGE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
The New York Tax-Exempt Income Fund, Inc.
<TABLE>
<CAPTION>
Ratings: Value
Moody's/S&P's/Fitch's Face Amount See Note 1
---------------------- ----------- -----------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES (CONTINUED)
NEW YORK (CONTINUED)
Mental Health Services Facilities, Series B, 7.875%,
8/15/20................................................ Baa1/BBB+ $1,000,000 $ 1,102,804
Mental Health Services Facilities, Prerefunded, Series A,
8.875%, 8/15/07........................................ Aaa/AAA 155,000 167,876
Mental Health Services Facilities, Unrefunded Balance,
Series A, 8.875%, 8/15/07.............................. Baa1/BBB+ 345,000 367,300
Richland Memorial Hospital & Nursing Home Mtg., Series B,
9.125%, 2/15/25........................................ Aa/AA 210,000 212,285
New York State Mtg. Agency Revenue Bonds:
Inverse Floater, 6.275%, 10/1/24(1)....................... NR/NR 1,000,000 743,523
Ninth Series E, 8.375%, 4/1/18............................ Aa/NR 655,000 672,691
New York State Power Authority Revenue:
Bonds, Prerefunded, Series V, 8%, 1/1/17.................. NR/AA 500,000 540,033
Refunding Bonds, Series V, MBIA Insured, 7.875%, 1/1/13... Aaa/AAA 450,000 484,792
Onondaga County, New York Resources Recovery Agency Revenue
Bonds, Resources Recovery Facilities Project, 7%,
5/1/15.................................................... Baa/NR/A- 900,000 924,350
Suffolk County, New York General Obligation Refunding Bonds,
AMBAC Insured, 10%, 11/1/02............................... Aaa/AAA/AAA 250,000 318,509
Triborough Bridge & Tunnel Authority of New York General
Purpose Revenue Bonds, Prerefunded, Series K, 8.25%,
1/1/17.................................................... Aaa/AAA 1,040,000 1,090,928
-----------
20,711,826
U.S. POSSESSIONS -- 10.4%
Puerto Rico Commonwealth Aqueduct & Sewer Authority Revenue
Bonds, Escrowed to Maturity, 10.25%, 7/1/09............... Aaa/AAA 675,000 934,275
Puerto Rico Electric Power Authority Revenue Refunding
Bonds, Series K, 9.375%, 7/1/17........................... Aaa/AAA 1,000,000 1,083,256
Puerto Rico Industrial, Medical & Environmental Pollution
Control Facilities Financing Authority Revenue Bonds,
American Airlines, Inc. Project, Series A, 8.75%,
12/1/25................................................... Baa1/BB+ 435,000 445,053
-----------
2,462,584
-----------
Total Investments, at Value (Cost $22,513,712)....................................... 98.3% 23,174,410
Other Assets Net of Liabilities...................................................... 1.7 402,866
----------- -----------
Net Assets........................................................................... 100.0% $23,577,276
----------- -----------
----------- -----------
</TABLE>
(1) Represents the current interest rate for a variable rate bond. Variable rate
bonds known as 'inverse floaters' pay interest at a rate that varies
inversely with short-term interest rates. As interest rates rise, inverse
floaters produce less current income. Their price may be more volatile than
the price of a comparable fixed-rate security. Inverse floaters amount to
$2,443,143 or 10.36% of the Fund's net assets at April 30, 1996.
As of April 30, 1996, securities subject to the alternative minimum tax amounted
to $3,868,646 or 16.41% of the Fund's net assets.
See accompanying Notes to Financial Statements.
4
<PAGE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
The New York Tax-Exempt Income Fund, Inc.
Distribution of investments by industry, as a percentage of total
investments at value, is as follows:
<TABLE>
<CAPTION>
Market
Industry Value Percent
- -------- ----------- -------
<S> <C> <C>
Utilities........................................................... $ 5,604,050 24.2%
General Obligation Bonds............................................ 3,349,702 14.5
Hospitals........................................................... 3,177,853 13.7
Lease/Rental........................................................ 2,590,101 11.2
Pollution Control................................................... 2,091,729 9.0
Transportation...................................................... 1,627,446 7.0
Corporate-Backed Municipals......................................... 1,457,002 6.3
Housing............................................................. 1,416,214 6.1
Special Tax Bonds................................................... 1,046,598 4.5
Education........................................................... 813,715 3.5
----------- -------
$23,174,410 100.0%
----------- -------
----------- -------
</TABLE>
See accompanying Notes to Financial Statements.
5
<PAGE>
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES April 30, 1996 (Unaudited)
The New York Tax-Exempt Income Fund, Inc.
<TABLE>
<S> <C>
ASSETS:
Investments, at value (cost $22,513,712) -- see accompanying statement.................... $23,174,410
Cash........................................................................................ 38,614
Receivables:
Interest.................................................................................. 521,626
Other....................................................................................... 9,493
-----------
Total assets........................................................................... 23,744,143
-----------
LIABILITIES:
Payables and other liabilities:
Dividends................................................................................. 130,099
Shareholder reports....................................................................... 24,374
Transfer agent and accounting service fees................................................ 7,050
Other..................................................................................... 5,344
-----------
Total liabilities...................................................................... 166,867
-----------
NET ASSETS.................................................................................. $23,577,276
-----------
-----------
COMPOSITION OF NET ASSETS:
Par value of shares of capital stock........................................................ $ 24,547
Additional paid-in capital.................................................................. 22,761,479
Undistributed net investment income......................................................... 48,481
Accumulated net realized gain on investment transactions.................................... 82,071
Net unrealized appreciation on investments -- Note 3...................................... 660,698
-----------
NET ASSETS -- applicable to 2,454,687 shares of capital stock outstanding................. $23,577,276
-----------
-----------
NET ASSET VALUE PER SHARE................................................................... $9.61
-----------
-----------
</TABLE>
See accompanying Notes to Financial Statements.
6
<PAGE>
<PAGE>
STATEMENT OF OPERATIONS For the Six Months Ended April 30, 1996 (Unaudited)
The New York Tax-Exempt Income Fund, Inc.
<TABLE>
<S> <C>
INVESTMENT INCOME -- Interest............................................................... $ 878,347
---------
EXPENSES:
Management fees -- Note 4................................................................... 59,746
Shareholder reports........................................................................... 18,218
Transfer agent and accounting service fees -- Note 4........................................ 12,046
Registration and filing fees.................................................................. 5,673
Legal and auditing fees....................................................................... 5,121
Custodian fees and expenses................................................................... 1,847
Insurance expenses............................................................................ 1,166
Directors' fees and expenses.................................................................. 1,029
Other......................................................................................... 212
---------
Total expenses........................................................................... 105,058
---------
NET INVESTMENT INCOME......................................................................... 773,289
---------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain on investments.............................................................. 89,314
Net change in unrealized appreciation or depreciation on investments.......................... (542,886)
---------
NET REALIZED AND UNREALIZED LOSS.............................................................. (453,572)
---------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.......................................... $ 319,717
---------
---------
</TABLE>
See accompanying Notes to Financial Statements.
7
<PAGE>
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
The New York Tax-Exempt Income Fund, Inc.
<TABLE>
<CAPTION>
Six Months Ended
April 30, 1996 Year Ended
(Unaudited) October 31, 1995
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Net investment income....................................................... $ 773,289 $ 1,531,652
Net realized gain (loss).................................................... 89,314 (2,641)
Net change in unrealized appreciation or depreciation....................... (542,886) 1,126,994
---------------- ----------------
Net increase in net assets resulting from operations................... 319,717 2,656,005
DIVIDENDS TO SHAREHOLDERS FROM NET INVESTMENT INCOME........................ (778,513) (1,541,374)
CAPITAL STOCK TRANSACTIONS:
Proceeds from shares issued to shareholders in reinvestment of dividends and
distributions -- Note 2................................................. 156,795 296,884
---------------- ----------------
NET ASSETS:
Total increase (decrease)................................................... (302,001) 1,411,515
Beginning of period......................................................... 23,879,277 22,467,762
---------------- ----------------
End of period (including undistributed net investment income of $48,481 and
$53,705, respectively).................................................... $ 23,577,276 $ 23,879,277
---------------- ----------------
---------------- ----------------
</TABLE>
See accompanying Notes to Financial Statements.
8
<PAGE>
<PAGE>
FINANCIAL HIGHLIGHTS
The New York Tax-Exempt Income Fund, Inc.
<TABLE>
<CAPTION>
Six Months
Ended
April 30, Year Ended October 31,
1996 -------------------------------------------------------
(Unaudited) 1995 1994 1993 1992 1991
----------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period... $ 9.79 $ 9.33 $ 10.77 $ 10.37 $ 10.22 $ 9.78
----------- ------- ------- ------- ------- -------
Income (loss) from investment
operations:
Net investment income.............. .32 .63 .65 .66 .65 .64
Net realized and unrealized gain
(loss)........................... (.18) .47 (1.18) .55 .18 .47
----------- ------- ------- ------- ------- -------
Total income (loss) from
investment operations.......... .14 1.10 (.53) 1.21 .83 1.11
----------- ------- ------- ------- ------- -------
Dividends and distributions to
shareholders:
Dividends from net investment
income........................... (.32) (.64) (.66) (.74) (.64) (.64)
Distributions from net realized
gain............................. -- -- -- (.07) (.04) (.03)
Distributions in excess of net
realized gain.................... -- -- (.25) -- -- --
----------- ------- ------- ------- ------- -------
Total dividends and distributions
to shareholders................ (.32) (.64) (.91) (.81) (.68) (.67)
----------- ------- ------- ------- ------- -------
Net asset value, end of period......... $ 9.61 $ 9.79 $ 9.33 $ 10.77 $ 10.37 $ 10.22
----------- ------- ------- ------- ------- -------
----------- ------- ------- ------- ------- -------
Market value, end of period............ $ 9.63 $ 9.63 $ 9.50 $ 12.63 $ 10.88 $ 10.00
TOTAL RETURN, AT MARKET VALUE(1)....... 3.28% 8.32% (17.70)% 25.11% 16.09% 17.19%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands)........................... $23,577 $23,879 $22,468 $25,516 $24,266 $23,713
Average net assets (in thousands)...... $24,008 $23,143 $23,852 $24,936 $24,042 $23,101
Ratios to average net assets:
Net investment income.............. 6.48%(2) 6.62% 6.53% 6.26% 6.32% 6.43%
Expenses........................... 0.88%(2) 0.88%(3) 0.87% 0.84% 0.97% 0.97%
Portfolio turnover rate(4)............. 9% 12% 6% 28% 9% 2%
</TABLE>
(1) Assumes a hypothetical purchase at the current market price on the business
day before the first day of the fiscal period, with all
dividends and distributions reinvested in additional shares on the
reinvestment date, and a sale at the current market price on
the last business day of the period.
(2) Annualized.
(3) In fiscal 1995, the expense ratio reflects the effect of gross expenses paid
indirectly by the Fund. Prior year expense ratios have not been adjusted.
(4) The lesser of purchases or sales of portfolio securities for a period,
divided by the monthly average of the market value of portfolio securities
owned during the period. Securities with a maturity or expiration date at
the time of acquisition of one year or less are excluded from the
calculation. Purchases and sales of investment securities (excluding
short-term securities) for the period ended April 30, 1996 were $3,082,962
and $2,036,787, respectively.
See accompanying Notes to Financial Statements.
9
<PAGE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited)
The New York Tax-Exempt Income Fund, Inc.
1. SIGNIFICANT ACCOUNTING POLICIES
The New York Tax-Exempt Income Fund, Inc. (the Fund) is registered under the
Investment Company Act of 1940, as amended, as a diversified, closed-end
management investment company. The Fund seeks to provide high current income
which is free from federal, New York State and New York City income taxes.
The Fund's investment advisor is OppenheimerFunds, Inc. (the Manager).
The following is a summary of significant accounting policies consistently
followed by the Fund.
Investment Valuation -- Portfolio securities
are valued at the close of the American Stock Exchange on the last day of each
week on which day the American Stock Exchange is open. Listed and unlisted
securities for which such information is regularly reported are valued at the
last sale price of the day or, in the absence of sales, at values based on the
closing bid or asked price or the last sale price on the prior trading day.
Long-term and short-term 'non-money market`!' debt securities are valued by a
portfolio pricing service approved by the Board of Directors. Such securities
which cannot be valued by the approved portfolio pricing service are valued
using dealer-supplied valuations provided the Manager is satisfied that the firm
rendering the quotes is reliable and that the quotes reflect current market
value, or are valued under consistently applied procedures established by the
Board of Directors to determine fair value in good faith. Short-term 'money
market type`!' debt securities having a remaining maturity of 60 days or less
are valued at cost (or last determined market value) adjusted for amortization
to maturity of any premium or discount.
Federal Taxes -- The Fund intends to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required.
Distributions to Shareholders -- The Fund intends to declare and pay dividends
from net investment income monthly. Distributions from net realized gains on
investments, if any, will be declared at least once each year.
Classification of Distributions to Shareholders -- Net investment income (loss)
and net realized gain (loss) may differ for financial statement and tax purposes
primarily because of premium amortization. The character of the distributions
made during the year from net investment income or net realized gains may differ
from their ultimate characterization for federal income tax purposes. Also, due
to timing of dividend distributions, the fiscal year in which amounts are
distributed may differ from the year that the income or realized gain (loss) was
recorded by the Fund.
Other -- Investment transactions are accounted for on the date the investments
are purchased or sold (trade date). Original issue discount on securities
purchased is amortized over the life of the respective securities, in accordance
with federal income tax requirements. For bonds acquired after April 30, 1993,
on disposition or maturity, taxable ordinary income is recognized to the extent
of the lesser of gain or market discount that would have accrued over the
holding period. Realized gains and losses on investments and unrealized
appreciation and depreciation are determined on an identified cost basis, which
is the same basis used for federal income tax purposes. The Fund concentrates
its investments in New York and, therefore, may have more credit risks related
to the economic con-
10
<PAGE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
The New York Tax-Exempt Income Fund, Inc.
ditions of New York than a portfolio with a broader geographical
diversification.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of income and expenses during the reporting period. Actual
results could differ from those estimates.
2. CAPITAL STOCK
The Fund has authorized 250,250,000 shares of $.01 par value capital stock. Of
these shares, 220,313 shares were reserved for issuance under a Dividend
Reinvestment and Cash Purchase Plan. Transactions in shares of capital stock
were as follows:
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
April 30, 1996 October 31, 1995
----------------- -----------------
Shares Amount Shares Amount
------ -------- ------ --------
<S> <C> <C> <C> <C>
Net increase from
dividends and
distributions
reinvested...... 15,905 $156,795 30,958 $296,884
</TABLE>
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
At April 30, 1996, net unrealized appreciation on investments of $660,698 was
composed of gross appreciation of $1,275,662, and gross depreciation of
$614,964.
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for a fee of 0.50% on the Fund's
average annual net assets.
The Manager acts as the accounting agent for the Fund at an annual fee of
$12,000, plus out-of-pocket costs and expenses reasonably incurred.
Shareholder Financial Services, Inc. (SFSI), a wholly-owned subsidiary of the
Manager, is the transfer agent and registrar for the Fund. Fees paid to SFSI are
based on the number of accounts and the number of shareholder transactions, plus
out-of-pocket costs and expenses.
11
<PAGE>
<PAGE>
SUMMARY OF GENERAL INFORMATION
GENERAL INFORMATION CONCERNING
THE FUND
The New York Tax-Exempt Income Fund, Inc. is a closed-end investment company
whose shares trade on the American Stock Exchange (the ASE). The Fund seeks to
provide high current income which is free from federal, New York State and New
York City income taxes. A portion of the Fund's distributions may be subject to
income tax. For investors subject to the alternative minimum income tax, a
portion of the fund's distributions may increase that tax. The Fund seeks to
achieve its objective by investing in municipal obligations, the income from
which is tax-exempt as described above. The Fund may invest in municipal lease
obligations, municipal obligations with variable or floating interest rates and
certain derivative investments, such as inverse floaters. The Fund may also use
certain hedging instruments. The investment advisor (the Manager) of the Fund is
OppenheimerFunds, Inc.
The Portfolio Manager of the Fund is Robert E. Patterson, who also serves as
Vice President of the Fund and Senior Vice President of the Manager. Mr.
Patterson has been the person principally responsible for the day-to-day
management of the Fund's portfolio since February 1992. During the past six
years, Mr. Patterson has also served as an officer and portfolio manager for
certain mutual funds managed by the Manager.
DIVIDEND REINVESTMENT AND CASH
PURCHASE PLAN
Pursuant to the Fund's Dividend Reinvestment and Cash Purchase Plan (the Plan),
as to shares of the Fund (Shares) not registered in nominee name, all dividends
and capital gains distributions (Distributions) declared by the Fund will be
automatically reinvested in additional full and fractional Shares unless a
shareholder elects to receive cash. If Shares are registered in nominee name,
the shareholder should consult the nominee if the shareholder desires to
participate in the Plan. Shareholders that participate in the Plan
(Participants) may, at their option, make additional cash investments in Shares,
semi-annually in amounts of at least $100, through payment to Shareholder
Financial Services, Inc., the agent for the Plan (the Agent), accompanied by a
service fee of $0.75.
Depending upon the circumstances hereinafter described, Plan Shares will be
acquired by the Agent for the Participant's account through receipt of newly
issued Shares or the purchase of outstanding Shares on the open market. If the
market price of Shares on the relevant date (normally the payment date) equals
or exceeds their net asset value, the Agent will ask the Fund for payment of the
Distribution in additional Shares at the greater of the Fund's net asset value
determined as of the date of purchase or 95% of the then-current market price.
If the market price is lower than net asset value, the Distribution will be paid
in cash, which the Agent will use to buy Shares on the ASE, or otherwise on the
open market to the extent available. If the market price exceeds the net asset
value before the Agent has completed its purchases, the average purchase price
per Share paid by the Agent may exceed the net asset value, resulting in fewer
Shares being acquired than if the Distribution had been paid in Shares issued by
the Fund.
Participants may elect to withdraw from the Plan at any time and thereby receive
cash in lieu of Shares by sending appropriate written instructions to the Agent.
Elections received by the Agent will be effective only if received more than ten
days prior to the record date for any Distribution; otherwise, such termination
will be effective shortly after the invest-
12
<PAGE>
<PAGE>
ment of such Distribution with respect to any subsequent Distribution. Upon
withdrawal from or termination of the Plan, all Shares acquired under the Plan
will remain in the Participant's account unless otherwise requested. For full
Shares, the Participant may either: (1) receive without charge a share
certificate for such Shares; or (2) request the Agent (after receipt by the
Agent of signature guaranteed instructions by all registered owners) to sell the
Shares acquired under the Plan and remit the proceeds less any brokerage
commissions and a $2.50 service fee. Fractional Shares may either remain in the
Participant's account or be reduced to cash by the Agent at the current market
price with the proceeds remitted to the Participant. Shareholders who have
previously withdrawn from the Plan may rejoin at any time by sending written
instructions signed by all registered owners to the Agent.
There is no direct charge for participation in the Plan; all fees of the Agent
are paid by the Fund. There are no brokerage charges for Shares issued directly
by the Fund. However, each Participant will pay a pro rata share of brokerage
commissions incurred with respect to open market purchases of Shares to be
issued under the Plan. Participants will receive tax information annually for
their personal records and to assist in federal income tax return preparation.
The automatic reinvestment of Distributions does not relieve Participants of any
income tax that may be payable on Distributions.
The Plan may be terminated or amended at any time upon 30 days' prior written
notice to Participants which, with respect to a Plan termination, must precede
the record date of any Distribution by the Fund. Additional information
concerning the Plan may be obtained by shareholders holding Shares registered
directly in their names by writing the Agent, Shareholder Financial Services,
Inc., P.O. Box 173673, Denver, CO, 80217-3673 or by calling 1-800-647-7374.
Shareholders holding Shares in nominee name should contact their brokerage firm
or other nominee for more information.
SHAREHOLDER INFORMATION
Daily market prices for the Fund's shares are published in the ASE section of
newspapers. The Fund's ASE trading symbol is XTX. Weekly comparative net asset
value (NAV) and market price information about The New York Tax-Exempt Income
Fund, Inc. is published each Monday in The Wall Street Journal, each Sunday in
The New York Times and each Saturday in Barron's in a table under the heading
'Closed-End Bond Funds.'
13
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THE NEW YORK TAX-EXEMPT INCOME FUND, INC.
Officers and Directors
James C. Swain, Chairman and
Chief Executive Officer
Bridget A. Macaskill, Director and
President
Robert G. Avis, Director
William A. Baker, Director
Charles Conrad, Jr., Director
Jon S. Fossel, Director
Raymond J. Kalinowski, Director
C. Howard Kast, Director
Robert M. Kirchner, Director
Ned M. Steel, Director
George C. Bowen, Vice President,
Treasurer and Assistant Secretary
Andrew J. Donohue, Vice President
and Secretary
Robert E. Patterson, Vice President
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
Investment Advisor
OppenheimerFunds, Inc.
Transfer Agent and Registrar
Shareholder Financial Services, Inc.
Custodian of Portfolio Securities
Citibank, N.A.
Independent Auditors
Deloitte & Touche LLP
Legal Counsel
Myer, Swanson, Adams & Wolf, P.C.
The financial statements included herein have been taken from the records of the
Fund without examination by the independent auditors.
This is a copy of a report to shareholders of The New York Tax-Exempt Income
Fund, Inc. It does not offer for sale or solicit orders to buy any
securities.
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that periodically the Fund may purchase its shares of
capital stock in the open market at prevailing market prices.
Shares of Oppenheimer funds are not deposits or obligations of any bank, are not
guaranteed by any bank, and are not insured by the FDIC or any other
agency, and involve investment risks, including possible loss of the
principal amount invested.
1996 SEMIANNUAL REPORT
THE
NEW YORK
TAX-EXEMPT
INCOME
FUND, INC.
APRIL 30, 1996
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RS0875.001.0496 [Logo]
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