<PAGE>
<PAGE>
Dear Shareholder:
For 1997, many industry analysts had anticipated a slow, sluggish year. This is
a prediction that just hasn't held true, due to the fact that the bond market
has continued to experience a quiet, yet solid, rebound during the first quarter
of this year.
However, this year's municipal bond market experienced some bouts of volatility
and periods where yields remained within a narrow trading range. Rates were
influenced by a small supply of new issues matched by a large demand for
municipal bonds. We were able to reduce volatility during these periods by
investing in shorter maturity bonds for liquidity and hedging
a portion of the Fund's portfolio with Treasury futures. As a result,
the Fund was able to maintain favorable performance relative to
several of its peers. Within this changing environment, The New York
Tax-Exempt Income Fund, Inc. performed well, providing a total
return at net asset value of 2.16% during the six months ended 4/30/97. The
Fund paid shareholders tax-exempt income with a dividend return of
6.44% for the month of April, 1997.(1) For New York State residents in the
43.74% combined effective tax bracket, this tax-free dividend would have been
equivalent to a taxable dividend of 11.45%.(2)
INVESTMENT BREAKDOWN:
THE NEW YORK TAX-EXEMPT INCOME
FUND, INC. AS OF 4/30/97(3)
[GRAPH]
AAA 53.79%
AA 7.17%
A 10.39%
BBB 16.20%
BB 4.50%
NR 7.95%
In order to increase portfolio income during the period, we continued to invest
heavily in revenue bonds. These bonds generally support an essential purpose,
such as toll roads, water or sewers, and are backed by a definable source of
income. We also invested in insured higher education bonds such as a highly
regarded New York private college. That investment provided yield for the Fund,
in addition to default protection from the bond insurer.
Furthermore, we held an overweighted position in prerefunded and other insured
bonds, using them as a source of liquidity and as a defensive position.
Prerefunded bonds are a strong liquid investment because their durations to
maturity are relatively short. Insured bonds are a good defensive investment
because the risk of default is generally absorbed by the bond's insurer.
<PAGE>
<PAGE>
A positive political backdrop has also provided good news for bond investors.
For example, in early May President Clinton released the blueprint for a
five-year agreement to balance the federal budget, as promised in his campaign
for a second term. Immediately following the plan's announcement, the U.S. Labor
Department released a report stating that the unemployment rate dropped to 4.9%
of the work force in April--the lowest level since 1973. In response to this
good news, the stock market surged to yet another record high and the yield on
the benchmark 30-year Treasury bond retreated to 6.88%, its lowest level since
early March. Finally, the other good news for municipal bond investors is that
President Clinton has announced no plans of initiating a flat tax, a proposal
that would have eliminated the tax advantages of municipal bonds.
Looking ahead to the coming months, we anticipate a steady, growing economy but
believe mixed economic signals could indicate potential inflationary pressure.
Therefore, we seek to manage the Fund to avoid undue interest-rate risk by
staying close to neutral duration, a measure of the portfolio's price
sensitivity to interest rate changes. Also, the increased supply of municipal
bonds should help to drive yields up again, making it easier to identify
higher-yielding situations with manageable risk. As the state and city budget
process unfolds, bond issuers will bring new projects to the municipal bond
market.
Thank you for your confidence in OppenheimerFunds, The Right Way to Invest. 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.
May 21, 1997
1. Total return is based on the change in net asset value per share from
10/31/96 to 4/30/97, without deducting any brokerage costs. Dividend return is
determined by annualizing the April 1997 dividend of $0.053 and dividing by the
closing price on the American Stock Exchange of $9.875 per share on 5/1/97
(payment date). Past performance does not guarantee future results.
2. Assumes a combined effective tax bracket of 43.74% for New York residents,
using the 36% federal and the maximum New York State income tax rates.
A portion of the Fund's distributions may be subject to federal, state and
local income taxes. For investors subject to alternative minimum income tax,
a portion of the Fund's distributions may increase that tax. Tax rates
may be lower depending on individual circumstances.
3. The chart is based on total investments at market value and is
subject to change. The Fund may invest up to 10% of net assets in below-
investment-grade securities, which carry a greater risk that the issuer may
default on repayment of interest or principal. Securities rated by any
rating organization are included in the equivalent Standard & Poor's rating
category. Average credit quality and allocation include rated securities and
those not rated by a national rating organization (currently 7.95% of total
investments) but to which the ratings given above have been assigned by the
Manager for internal purposes as being comparable, in the Manager's judgment, to
securities rated by a rating agency in the same category.
<PAGE>
<PAGE>
STATEMENT OF INVESTMENTS April 30, 1997 (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 -- 97.8%
NEW YORK -- 85.8%
Babylon, NY IDA RR RB, Ogden Martin Systems, Inc.,
Prerefunded, Series C, 8.50%, 1/1/19...................... Aaa/AAA $ 985,000 $ 1,063,406
NY MTAU RB, Transportation Facilities Service Contracts,
Prerefunded, Series 1, 8.50%, 7/1/17...................... Aaa/AAA 500,000 513,885
NY MTAU RB, Transportation Facilities Service Contracts,
Series 3, 9.25%, 7/1/00................................... Baa1/BBB 1,015,000 1,142,626
NYC GOB, Prerefunded, Series D, 7.50%, 2/1/19............... Aaa/BBB+/A- 435,000 489,840
NYC GOB, Prerefunded, Series D, 8%, 8/1/03.................. Aaa/BBB+/A- 900,000 1,023,705
NYC GOB, Unrefunded Balance, Series D, 7.50%, 2/1/19........ Baa1/BBB+/A- 865,000 953,861
NYC Health & Hospital Corp. RRB, AMBAC Insured, Inverse
Floater, 7.241%, 2/15/23(1)............................... Aaa/AAA/AAA 1,000,000 896,250
NYC IDAU Civil Facility RB, Community Resources Development,
7.50%, 8/1/26............................................. NR/NR 500,000 507,040
NYC IDAU RB, VISY Paper, Inc. Project, 7.95%, 1/1/28........ NR/NR 1,250,000 1,344,950
NYC MWFAU WSS RB, Prerefunded, Series A, 9%, 6/15/17........ Aaa/AAA 500,000 513,170
NYS DA RB, Judicial Facilities Lease, Escrowed to Maturity,
BIG Insured, 7.375%, 7/1/16............................... Aaa/AAA 250,000 298,750
NYS DA RRB, L.I. Jewish Medical Center, Series A, 7.75%,
8/15/27................................................... Aa2/AAA 1,000,000 1,038,490
NYS ERDAUEF RB, L.I. Lighting Co., Series C, 6.90%,
8/1/22.................................................... Ba1/BB+ 1,000,000 1,048,890
NYS ERDAUPC RB, Rochester Gas & Electric Co. Project, Series
C, 8.375%, 12/1/28........................................ Baa1/BBB+ 250,000 267,310
NYS GORB, 9.875%, 11/15/05.................................. A2/A-/A+ 400,000 527,968
NYS HFA RB, State University Construction Project,
Prerefunded, Series A, 8.30%, 5/1/18...................... Aaa/AAA 750,000 781,410
NYS HFASC RB, Prerefunded, Series A, 7.375%, 9/15/21........ Aaa/AAA 575,000 646,288
NYS LGAC RB, Prerefunded, Series B, 7.50%, 4/1/20........... Aaa/AAA/AAA 1,000,000 1,117,880
NYS MAG RB, Inverse Floater, 5.769%, 10/1/24(1)............. MIG1/NR 1,000,000 797,500
NYS MAG RB, Ninth Series E, 8.375%, 4/1/18.................. Aa/NR 340,000 349,659
NYS MCFFA RB, Bronx-Lebanon Hospital, Series A, BIG Insured,
7.10%, 2/15/27............................................ Aaa/AAA 1,000,000 1,022,520
NYS MCFFA RB, Mental Health Services Facilities,
Prerefunded, Series B, 7.875%, 8/15/20.................... Aaa/AAA 350,000 390,348
NYS MCFFA RB, Mental Health Services Facilities, Unrefunded
Balance, Series B, 7.875%, 8/15/20........................ Baa1/BBB+ 995,000 1,101,963
NYS MCFFA RRB, Mental Health Services Facilities, Unrefunded
Balance, Series A, 8.875%, 8/15/07........................ Baa1/BBB+ 345,000 356,516
NYS PAU RB, Prerefunded, Series V, 8%, 1/1/17............... NR/AA 500,000 523,330
</TABLE>
3
<PAGE>
<PAGE>
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
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>
NYS PAU RRB, Prerefunded, MBIA Insured, Series V, 7.875%,
1/1/13.................................................... Aaa/AAA $ 450,000 $ 470,736
Onondaga Cnty., NY RR Agency RB, RR Facilities Project, 7%,
5/1/15.................................................... Baa/NR/A- 900,000 938,223
Suffolk Cnty., NY GORB, AMBAC Insured, 10%, 11/1/02......... Aaa/AAA/AAA 250,000 309,558
-----------
20,436,072
U.S. POSSESSIONS -- 12.0%
PR Commonwealth Aqueduct & Sewer Authority RB, Escrowed to
Maturity, 10.25%, 7/1/09.................................. Aaa/AAA 675,000 928,159
PR Commonwealth Infrastructure FAU Special RB, Series A,
7.90%, 7/1/07............................................. Baa1/BBB+ 425,000 450,798
PR EPAU RRB, Prerefunded, Series K, 9.375%, 7/1/17.......... Aaa/AAA 1,000,000 1,029,250
PR Industrial, Medical & Environmental PC Facilities FAU RB,
American Airlines, Inc. Project, Series A, 6.45%,
12/1/25................................................... Baa1/BB+ 435,000 455,323
-----------
2,863,530
-----------
Total Investments, at Value (Cost $22,848,064)....................................... 97.8 % 23,299,602
Other Assets Net of Liabilities...................................................... 2.2 520,567
----------- -----------
Net Assets........................................................................... 100.0 % $23,820,169
----------- -----------
----------- -----------
</TABLE>
(1) Represents the current interest rate for a variable rate bond. These 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 $1,693,750
or 7.11% of the Fund's net assets at April 30, 1997.
As of April 30, 1997, securities subject to the alternative minimum tax amounted
to $3,949,032 or 16.58% of the Fund's net assets.
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>
Industry Market Value Percent
- -------- ------------ -------
<S> <C> <C>
Lease Rental........................................................ $ 4,450,376 19.0%
General Obligation.................................................. 3,304,932 14.2
Hospital/Healthcare................................................. 2,957,260 12.7
Electric Utilities.................................................. 2,023,316 8.7
Resource Recovery................................................... 2,001,629 8.6
Sales Tax........................................................... 1,568,678 6.7
Water Utilities..................................................... 1,441,329 6.2
Manufacturing, Non-Durable Goods.................................... 1,344,950 5.8
Pollution Control................................................... 1,316,200 5.6
Single Family Housing............................................... 1,147,159 4.9
Higher Education.................................................... 781,410 3.4
Non-Profit Organization............................................. 507,040 2.2
Corporate Backed.................................................... 455,323 2.0
----------- -------
$23,299,602 100.0%
----------- -------
----------- -------
</TABLE>
To simplify the listing of securities, abbreviations are used per the table
below:
<TABLE>
<S> <C>
DA Dormitory Authority
EPAU Electric Power Authority
ERDAUEF Energy Research & Development Authority
Electric Facilities
ERDAUPC Energy Research & Development Authority
Pollution Control
FAU Finance Authority
GOB General Obligation Bonds
GORB General Obligation Refunding Bonds
HFA Housing Finance Agency
HFASC Housing Finance Agency Service Contract
IDA Industrial Development Agency
IDAU Industrial Development Authority
LGAC Local Government Assistance Corp.
L.I. Long Island
MAG Mtg. Agency
MCFFA Medical Care Facilities Finance Agency
MTAU Metropolitan Transportation Authority
MWFAU Municipal Water Finance Authority
NYC New York City
NYS New York State
PAU Power Authority
PC Pollution Control
RB Revenue Bonds
RR Resource Recovery
RRB Revenue Refunding Bonds
WSS Water & Sewer System
</TABLE>
See accompanying Notes to Financial Statements.
5
<PAGE>
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES April 30, 1997 (Unaudited)
The New York Tax-Exempt Income Fund, Inc.
<TABLE>
<S> <C>
ASSETS:
Investments, at value (cost $22,848,064) -- see accompanying statement.................... $23,299,602
Cash........................................................................................ 209,101
Interest receivable......................................................................... 481,547
Other....................................................................................... 9,272
-----------
Total assets........................................................................... 23,999,522
-----------
LIABILITIES:
Payables and other liabilities:
Dividends................................................................................. 131,757
Shareholder reports....................................................................... 24,608
Legal and auditing fees................................................................... 10,457
Management and administrative fees........................................................ 9,760
Other..................................................................................... 2,771
-----------
Total liabilities...................................................................... 179,353
-----------
NET ASSETS.................................................................................. $23,820,169
-----------
-----------
COMPOSITION OF NET ASSETS:
Par value of shares of capital stock........................................................ $ 24,860
Additional paid-in capital.................................................................. 23,063,483
Undistributed net investment income......................................................... 51,844
Accumulated net realized gain on investment transactions.................................... 228,444
Net unrealized appreciation on investments -- Note 3...................................... 451,538
-----------
NET ASSETS -- applicable to 2,485,981 shares of capital stock outstanding................. $23,820,169
-----------
-----------
NET ASSET VALUE PER SHARE................................................................... $9.58
-----------
-----------
</TABLE>
See accompanying Notes to Financial Statements.
6
<PAGE>
<PAGE>
STATEMENT OF OPERATIONS For the Six Months Ended April 30, 1997 (Unaudited)
The New York Tax-Exempt Income Fund, Inc.
<TABLE>
<S> <C>
INVESTMENT INCOME -- Interest.............................................................. $ 872,792
----------
EXPENSES:
Management fees -- Note 4.................................................................. 59,401
Shareholder reports.......................................................................... 12,492
Transfer agent and accounting services fees -- Note 4...................................... 9,573
Legal and auditing fees...................................................................... 4,201
Registration and filing fees................................................................. 3,495
Directors' fees and expenses................................................................. 1,707
Other........................................................................................ 1,156
----------
Total expenses.......................................................................... 92,025
----------
NET INVESTMENT INCOME........................................................................ 780,767
----------
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain on investments............................................................. 265,518
Net change in unrealized appreciation or depreciation on investments......................... (530,542)
----------
NET REALIZED AND UNREALIZED LOSS............................................................. (265,024)
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS......................................... $ 515,743
----------
----------
</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, 1997 Year Ended
(Unaudited) October 31, 1996
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Net investment income....................................................... $ 780,767 $ 1,568,849
Net realized gain (loss).................................................... 265,518 (30,729)
Net change in unrealized appreciation or depreciation....................... (530,542) (221,504)
---------------- ----------------
Net increase in net assets resulting from operations........................ 515,743 1,316,616
---------------- ----------------
DIVIDENDS TO SHAREHOLDERS FROM NET INVESTMENT INCOME........................ (788,559) (1,562,020)
---------------- ----------------
CAPITAL STOCK TRANSACTIONS:
Proceeds from shares issued to shareholders in reinvestment of
dividends -- Note 2..................................................... 150,887 308,225
---------------- ----------------
NET ASSETS:
Total increase (decrease)................................................... (121,929) 62,821
Beginning of period......................................................... 28,942,098 28,879,277
---------------- ----------------
End of period (including undistributed net investment income of $51,844 and
$59,636, respectively).................................................... $ 28,820,169 $ 28,942,098
---------------- ----------------
---------------- ----------------
</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,
1997 ------------------------------------------------
(Unaudited) 1996 1995 1994 1993 1992
----------------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of period.......... $ 9.69 $ 9.79 $ 9.33 $ 10.77 $ 10.37 $ 10.22
----------------- ------- ------- ------- ------- -------
Income (loss) from investment operations:
Net investment income.................... .32 .64 .63 .65 .66 .65
Net realized and unrealized gain
(loss)................................. (.11) (.10) .47 (1.18) .55 .18
----------------- ------- ------- ------- ------- -------
Total income (loss) from investment
operations.......................... .21 .54 1.10 (.53) 1.21 .83
----------------- ------- ------- ------- ------- -------
Dividends and distributions to shareholders:
Dividends from net investment income..... (.32) (.64) (.64) (.66) (.74) (.64)
Distributions from net realized gain..... -- -- -- -- (.07) (.04)
Distributions in excess of net realized
gain................................... -- -- -- (.25) -- --
----------------- ------- ------- ------- ------- -------
Total dividends and distributions to
shareholders........................ (.32) (.64) (.64) (.91) (.81) (.68)
----------------- ------- ------- ------- ------- -------
Net asset value, end of period................ $ 9.58 $ 9.69 $ 9.79 $ 9.33 $ 10.77 $ 10.37
----------------- ------- ------- ------- ------- -------
----------------- ------- ------- ------- ------- -------
Market value, end of period................... $ 9.75 $ 10.00 $ 9.63 $ 9.50 $ 12.63 $ 10.88
TOTAL RETURN, AT MARKET VALUE(1).............. 0.74% 10.82% 8.32% (17.70)% 25.11% 16.09%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands)...... $23,820 $23,942 $23,879 $22,468 $25,516 $24,266
Average net assets (in thousands)............. $23,981 $23,840 $23,143 $23,852 $24,936 $24,042
Ratios to average net assets:
Net investment income.................... 6.57%(2) 6.58% 6.62% 6.53% 6.26% 6.32%
Expenses(3).............................. 0.77%(2) 0.85% 0.88% 0.87% 0.84% 0.97%
Portfolio turnover rate(4).................... 22.6% 13% 12% 6% 28% 9%
</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) Beginning 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, 1997 were $5,334,524
and $5,347,736, 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 exempt from federal, New York State and New York City income taxes for
individual investors as is available from municipal securities. The Fund's
investment adviser 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 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 for tax purposes.
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 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
10
<PAGE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
The New York Tax-Exempt Income Fund, Inc.
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 conditions 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 250,000,000 shares of $.01 par value capital stock. Of
these shares, 189,019 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, 1997 October 31, 1996
----------------- -----------------
Shares Amount Shares Amount
------ -------- ------ --------
<S> <C> <C> <C> <C>
Net increase from
dividends
reinvested........ 15,560 $150,887 31,639 $308,225
------ -------- ------ --------
------ -------- ------ --------
</TABLE>
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
At April 30, 1997, net unrealized appreciation on investments of $451,538 was
composed of gross appreciation of $898,481, and gross depreciation of $446,943.
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>
The New York Tax-Exempt Income Fund, Inc.
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 exempt 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 generally 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 adviser (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 (Oppenheimer funds).
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, semiannually 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 $.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 investment of
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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 and The New York Times and each Saturday in Barron's in a table
under the heading 'Closed-End Bond Funds.'
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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
Sam Freedman, 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 Adviser
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.
RS0875.001.0697 [Logo] Printed on recycled paper
1997 SEMIANNUAL REPORT
THE
NEW YORK
TAX-EXEMPT
INCOME
FUND, INC.
APRIL 30, 1997
