<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL Two World Trade Center,
SERIES TRUST New York, New York 10048
LETTER TO THE SHAREHOLDERS May 31, 2000
DEAR SHAREHOLDER:
During the six-month period ended May 31, 2000, the U.S. economy continued its
unprecedented expansion. Real personal consumption accelerated and unemployment
reached a 30-year low. At the same time, a surge in oil prices heightened the
risk of inflation. In response, the Federal Reserve Board continued to raise the
federal funds rate. Three increases totaling 100 basis points have occurred
since February 2000, bringing the federal funds rate to a nine-year high of 6.50
percent.
Economic growth and a less accommodative monetary policy caused long-term
interest rates to increase throughout 1999. In February, however, the U.S.
Treasury announced plans to use the federal budget surplus to reduce its debt.
This announcement precipitated a 50- to 75-basis-point drop in yields of
longer-maturity Treasuries. Municipal bond yields also declined but not as
dramatically as Treasury yields. Long-term interest rates rose in April based on
economic strength but began to decline in May on signs of an economic slowdown.
MUNICIPAL MARKET CONDITIONS
The long-term insured municipal index began 1999 near a record low yield of
5.05 percent but increased to 5.97 percent by year-end. This index reached a
high of 6.18 percent in January 2000 but ended May at 5.91 percent. Because
bond prices move inversely to changes in interest rates, municipal bond prices
declined significantly last year and improved marginally in the first five
months of 2000.
The ratio of municipal yields as a percentage of Treasury yields has
historically been used as a measure of relative value. Over the past five years
this ratio has ranged between an average high of 93 percent and an average low
of 85 percent. The increase in the ratio from 92 percent to 99 percent during
the first five months of this year was primarily attributed to the magnitude of
a rally in long-term Treasuries. A rising yield ratio indicates weaker relative
performance by municipals.
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
LETTER TO THE SHAREHOLDERS May 31, 2000, continued
During the first five months of 2000, municipal underwriting volume dropped 25
percent versus the same period last year. Refunding activity, the most
interest-rate-sensitive component of new-issue supply, fell more than 75
percent.
30-YEAR BOND YIELDS 1994-2000
Date AAA Ins Tsy % Relationship
12/31/93 5.40% 6.34% 85.17%
01/31/94 5.40 6.24 86.54%
02/28/94 5.80 6.66 87.09%
03/31/94 6.40 7.09 90.27%
04/29/94 6.35 7.32 86.75%
05/31/94 6.25 7.43 84.12%
06/30/94 6.50 7.61 85.41%
07/29/94 6.25 7.39 84.57%
08/31/94 6.30 7.45 84.56%
09/30/94 6.55 7.81 83.87%
10/31/94 6.75 7.96 84.80%
11/30/94 7.00 8.00 87.50%
12/30/94 6.75 7.88 85.66%
01/31/95 6.40 7.70 83.12%
02/28/95 6.15 7.44 82.66%
03/31/95 6.15 7.43 82.77%
04/28/95 6.20 7.34 84.47%
05/31/95 5.80 6.66 87.09%
06/30/95 6.10 6.62 92.15%
07/31/95 6.10 6.86 88.92%
08/31/95 6.00 6.66 90.09%
09/29/95 5.95 6.48 91.82%
10/31/95 5.75 6.33 90.84%
11/30/95 5.50 6.14 89.58%
12/29/95 5.35 5.94 90.07%
01/31/96 5.40 6.03 89.55%
02/29/96 5.60 6.46 86.69%
03/29/96 5.85 6.66 87.84%
04/30/96 5.95 6.89 86.36%
05/31/96 6.05 6.99 86.55%
06/28/96 5.90 6.89 85.63%
07/31/96 5.85 6.97 83.93%
08/30/96 5.90 7.11 82.98%
09/30/96 5.70 6.93 82.25%
10/31/96 5.65 6.64 85.09%
11/29/96 5.50 6.35 86.61%
12/31/96 5.60 6.63 84.46%
01/31/97 5.70 6.79 83.95%
02/28/97 5.65 6.80 83.09%
03/31/97 5.90 7.10 83.10%
04/30/97 5.75 6.94 82.85%
05/30/97 5.65 6.91 81.77%
06/30/97 5.60 6.78 82.60%
07/30/97 5.30 6.30 84.13%
08/31/97 5.50 6.61 83.21%
09/30/97 5.40 6.40 84.38%
10/31/97 5.35 6.15 86.99%
11/30/97 5.30 6.05 87.60%
12/31/97 5.15 5.92 86.99%
01/31/98 5.15 5.80 88.79%
02/28/98 5.20 5.92 87.84%
03/31/98 5.25 5.93 88.53%
04/30/98 5.35 5.95 89.92%
05/29/98 5.20 5.80 89.66%
06/30/98 5.20 5.65 92.04%
07/31/98 5.18 5.71 90.72%
08/31/98 5.03 5.27 95.45%
09/30/98 4.95 5.00 99.00%
10/31/98 5.05 5.16 97.87%
11/30/98 5.00 5.06 98.81%
12/31/98 5.05 5.10 99.02%
01/31/99 5.00 5.09 98.23%
02/28/99 5.10 5.58 91.40%
03/31/99 5.15 5.63 91.47%
04/30/99 5.20 5.66 91.87%
05/31/99 5.30 5.83 90.91%
06/30/99 5.47 5.96 91.78%
07/31/99 5.55 6.10 90.98%
08/31/99 5.75 6.06 94.88%
09/30/99 5.85 6.05 96.69%
10/31/99 6.03 6.16 97.89%
11/30/99 6.00 6.29 95.39%
12/31/99 5.97 6.48 92.13%
01/31/00 6.18 6.49 95.22%
02/29/00 6.04 6.14 98.37%
03/31/00 5.82 5.83 99.83%
04/30/00 5.91 5.96 99.16%
05/31/00 5.91 6.01 98.34%
Source: Municipal Market Data - A Division of Thomson Financial Municipal Group
and Bloomberg L.P.
PORTFOLIO STRUCTURE
The average duration of the four single-state portfolios that make up Morgan
Stanley Dean Witter Multi-State Municipal Series Trust (Arizona, Florida, New
Jersey and Pennsylvania) ranged between six and seven years at the end of May.
Average duration is a measure of sensitivity to interest-rate changes. Weighted
average bond maturities ranged from 14 to 17 years, with average call
protection of 5 years.
On the following pages we have summarized details regarding the various state
series for your convenience. Here you will find information on credit quality,
duration, maturity, call protection, distributions and performance.
2
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
LETTER TO THE SHAREHOLDERS May 31, 2000, continued
LOOKING AHEAD
The Federal Reserve Board has expressed concern about consumer wealth and
rising prices. We anticipate that the central bank will continue to focus on
inflation and may increase short-term interest rates if it feels that economic
momentum is not slowing sufficiently. We believe municipal bonds continue to
offer tax-conscious investors good long-term value.
We appreciate your ongoing support of Morgan Stanley Dean Witter Multi-State
Municipal Series Trust and look forward to continuing to serve your investment
needs.
Very truly yours,
/s/ CHARLES A. FIUMEFREDDO /s/ MITCHELL M. MERIN
-------------------------- ---------------------
CHARLES A. FIUMEFREDDO MITCHELL M. MERIN
Chairman of the Board President
3
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
FUND PERFORMANCE May 31, 2000
AVERAGE ANNUAL TOTAL RETURNS -- PERIOD ENDED MAY 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1 YEAR 5 YEARS SINCE INCEPTION (3)
------------------------------------- ------------------------------- -------------------------------
<S> <C> <C> <C> <C> <C> <C>
Arizona .............. (1.70)%(1) (5.63)%(2) 4.00%(1) 3.15%(2) 5.89%(1) 5.42%(2)
Florida .............. (1.84) (1) (5.77) (2) 4.27 (1) 3.42 (2) 6.28 (1) 5.82 (2)
New Jersey ........... (2.22) (1) (6.13) (2) 4.37 (1) 3.52 (2) 6.38 (1) 5.92 (2)
Pennsylvania ......... (2.36) (1) (6.26) (2) 4.14 (1) 3.29 (2) 6.23 (1) 5.77 (2)
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RETURNS. INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE. WHEN YOU SELL FUND SHARES, THEY MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST.
---------------
(1) Figure shown assumes reinvestment of all distributions and does not
reflect the deduction of any sales charges.
(2) Figure shown assumes reinvestment of all distributions and the deduction
of the maximum applicable front-end sales charge. See the Fund's current
prospectus for complete details on fees and sales charges.
(3) Dates of inception: Arizona -- April 30, 1991; Florida, New Jersey and
Pennsylvania -- January 15, 1991.
4
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
PORTFOLIO SUMMARY May 31, 2000 (unaudited)
<TABLE>
<CAPTION>
ARIZONA FLORIDA NEW JERSEY PENNSYLVANIA
SERIES SERIES SERIES SERIES
------------ ------------ ------------ -------------
<S> <C> <C> <C> <C>
Credit Ratings (1):
Aaa or AAA .................................. 49% 72% 62% 68%
Aa or AA .................................... 25 13 17 15
A or A ...................................... 26 7 12 9
Baa or BBB .................................. -- 8 6 7
Ba or BB .................................... -- -- -- --
Non-Rated (2) ............................... -- -- 3 1
Long-Term Portfolio Distribution by Call Date
2000 ...................................... 6% 5% 6% --
2001 ...................................... 5 11 12 12%
2002 ...................................... 32 31 27 25
2003 ...................................... 7 4 5 13
2004 ...................................... 10 -- -- --
2005 ...................................... 3 6 12 2
2006 ...................................... -- 7 3 4
2007 ...................................... -- 5 3 4
2008 ...................................... 15 7 18 27
2009 ...................................... 6 7 11 6
2010+ ..................................... 16 17 3 7
Average Weighted (3):
Maturity .................................. 16 Years 17 Years 14 Years 17 Years
Call Protection .......................... 5 Years 5 Years 4 Years 5 Years
Modified Duration ......................... 7 Years 7 Years 6 Years 7 Years
Per Share Net Asset Value:
November 30, 1999 ......................... $9.90 $10.10 $10.22 $10.19
May 31, 2000 .............................. $9.78 $ 9.96 $10.05 $10.03
Distributions (4) ........................... $0.24 $ 0.25 $ 0.25 $ 0.26
Total Return (5):
6 months ended 05/31/00 ................... 1.23 % 1.07 % 0.77 % 0.96 %
12 months ended 05/31/00 .................. (1.70)% (1.84)% (2.22)% (2.36)%
</TABLE>
---------------
(1) Represents Moody's or Standard & Poor's ratings of the credit quality of
the long-term bonds owned by each Series.
(2) Unrated at time of purchase; deemed by Investment Manager to be
comparable to investment grade securities.
(3) Includes short-term securities.
(4) Includes all income dividends and capital gains distributions, if any,
paid by each Series for the six months ended May 31, 2000.
(5) Total return figures represent the change in each Series' total value
for each period measured, taking into account the change in NAV plus
compounded, reinvested dividends and do not reflect the deduction of
sales load. Calculated based on the net asset value as of the last
business day of the period.
5
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- ARIZONA SERIES
PORTFOLIO OF INVESTMENTS May 31, 2000 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ARIZONA TAX-EXEMPT MUNICIPAL BONDS (86.4%)
General Obligation (9.1%)
$ 1,000 Paradise Valley Unified School District #69, Ser B 1995 (MBIA) ............. 5.25 % 07/01/15 $ 947,080
1,000 Phoenix, Refg Ser 1992 ..................................................... 6.375 07/01/13 1,036,730
1,000 Puerto Rico, Public Improvement Ser 1998 (MBIA) ............................ 6.00 07/01/16 1,045,240
-------- -----------
3,000 3,029,050
-------- -----------
Educational Facilities Revenue (6.0%)
1,000 Arizona Board of Regents, Arizona State University Ser 1992 A .............. 5.50 07/01/19 952,300
1,000 University Arizona, Telecommunications Ser 1991 COPs ....................... 6.50 07/15/12 1,037,850
-------- -----------
2,000 1,990,150
-------- -----------
Electric Revenue (5.0%)
820 Salt River Project Agricultural Improvement & Power District, Refg
1992 Ser D ............................................................... 6.25 01/01/27 827,257
1,000 Puerto Rico Electric Power Authority, Power Ser DD (FSA) ................... 4.50 07/01/19 822,950
-------- -----------
1,820 1,650,207
-------- -----------
Hospital Revenue (7.5%)
1,500 Maricopa County Industrial Development Authority, Catholic Healthcare West
1992 Ser A (MBIA) ........................................................ 5.75 07/01/11 1,506,405
1,000 Pima County Industrial Development Authority, Carondelet Health Care Corp
Ser 1993 (MBIA) .......................................................... 5.25 07/01/13 970,500
-------- -----------
2,500 2,476,905
-------- -----------
Industrial Development/Pollution Control Revenue (10.9%)
1,000 Greenlee County Industrial Development Authority, Phelps Dodge Corp
Refg 1994 ................................................................ 5.45 06/01/09 957,290
1,000 Mohave County Industrial Development Authority, Citizens Utilities Co
1993 Ser B (AMT) ......................................................... 5.80 11/15/28 930,450
1,700 Santa Cruz County Industrial Development Authority, Citizens Utilities Co
Ser 1991 (AMT) ........................................................... 7.15 02/01/23 1,717,782
-------- -----------
3,700 3,605,522
-------- -----------
Mortgage Revenue -- Multi-Family (2.8%)
910 Pima County Industrial Development Authority, Rancho Mirage Ser 1992
-------- (AMT) (AGRC) ............................................................. 7.05 04/01/22 943,552
-----------
Public Facilities Revenue (8.4%)
Arizona,
500 Refg Ser 1992 B COPs (AMBAC) ............................................. 6.25 09/01/10 513,610
500 Ser 1991 COPs (FSA) ...................................................... 6.25 09/01/11 511,415
1,000 Phoenix Civic Improvement Corporation, Phoenix Municipal Courthouse
Sr Lien Excise Tax Ser 1999 A ............................................ 5.25 07/01/24 898,020
1,000 Puerto Rico Infrastructure Financing Authority, Special Tax Ser 1997 A
(AMBAC) .................................................................. 5.00 07/01/28 864,360
-------- -----------
3,000 2,787,405
-------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- ARIZONA SERIES
PORTFOLIO OF INVESTMENTS May 31, 2000 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Transportation Facilities Revenue (9.9%)
$ 1,000 Phoenix, Street & Highway User Refg Ser 1993 .............................. 5.125% 07/01/11 $ 967,610
Tucson,
1,000 Street & Highway User Sr Lien Refg Ser 1993 ............................. 5.50 07/01/09 1,006,550
500 Street & Highway User Sr Lien Refg Ser 1996 (MBIA) ...................... 6.00 07/01/10 523,855
1,000 Puerto Rico Highway & Transportation Authority, Ser 1998 A ................ 4.75 07/01/38 784,170
-------- -----------
3,500 3,282,185
-------- -----------
Water & Sewer Revenue (20.1%)
400 Arizona Wastewater Management Authority, Wastewater Ser 1992 A
(AMBAC) ................................................................. 5.95 07/01/12 405,896
1,000 Arizona Water Infrastructure Finance Authority, Water Quality Ser 1998 A
(MBIA) .................................................................. 5.00 07/01/17 899,920
1,000 Chandler, Water & Sewer Refg Ser 1992 (FGIC) .............................. 6.25 07/01/13 1,030,350
1,000 Gilbert, Water & Wastewater Refg Ser 1992 (FGIC) .......................... 6.50 07/01/22 1,048,110
1,000 Mesa, Utility Ser 1998 (MBIA) ............................................. 4.50 07/02/18 821,380
1,000 Phoenix Civic Improvement Corporation, Wastewater Refg Ser 1993 ........... 4.75 07/01/23 818,980
1,000 Pima County Metropolitan Domestic Water Improvement District,
Refg Ser 1999 (FGIC) .................................................... 4.875 01/01/19 868,890
1,000 Scottsdale Water & Sewer Refg Ser 1998 E .................................. 4.50 07/01/23 801,080
-------- -----------
7,400 6,694,606
-------- -----------
Refunded (6.7%)
1,150 Arizona Health Facilities Authority, Phoenix Baptist Hospital & Medical
Center Inc & Medical Environments Inc Ser 1992 (MBIA) (ETM) ............. 6.25 09/01/11 1,187,306
1,000 Tucson, Water Refg Ser 1991 ............................................... 6.50 07/01/01+ 1,035,070
-------- -----------
2,150 2,222,376
-------- -----------
29,980 TOTAL ARIZONA TAX-EXEMPT MUNICIPAL BONDS
-------- (Identified Cost $29,368,797) ..................................................................... 28,681,958
-----------
SHORT-TERM ARIZONA TAX-EXEMPT MUNICIPAL OBLIGATIONS (8.1%)
1,000 Maricopa County Pollution Control Corporation, Arizona Public Service Co
Ser 1994 D (Demand 06/01/00) ............................................ 4.45* 05/01/29 1,000,000
700 Pinal County Industrial Development Authority, Newmont Mining Co
Ser 1984 (Demand 06/01/00) .............................................. 4.35* 12/01/09 700,000
1,000 Tempe, Excise Tax Ser 1998 (Demand 06/01/00) .............................. 4.35* 07/01/23 1,000,000
-------- -----------
2,700 TOTAL SHORT-TERM ARIZONA TAX-EXEMPT MUNICIPAL OBLIGATIONS
-------- (Identified Cost $2,700,000) ...................................................................... 2,700,000
-----------
$ 32,680 TOTAL INVESTMENTS (Identified Cost $ 32,068,797) (a) ................................ 94.5% 31,381,958
========
OTHER ASSETS IN EXCESS OF LIABILITIES ............................................... 5.5 1,816,821
----- -----------
NET ASSETS .......................................................................... 100.0% $33,198,779
===== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- ARIZONA SERIES
PORTFOLIO OF INVESTMENTS May 31, 2000 (unaudited) continued
---------------
AMT Alternative Minimum Tax.
COPs Certificates of Participation.
ETM Escrowed to maturity.
+ Prerefunded to call date shown.
* Current coupon of variable rate demand obligation.
(a) The aggregate cost for federal income tax purposes approximates
identified cost. The aggregate gross unrealized appreciation is
$522,793 and the aggregate gross unrealized depreciation is
$1,209,632, resulting in net unrealized depreciation of $686,839.
Bond Insurance:
---------------
AGRC Asset Guaranty Reinsurance Company.
AMBAC AMBAC Assurance Corporation.
FGIC Financial Guaranty Insurance Company.
FSA Financial Security Assurance Inc.
MBIA Municipal Bond Investors Assurance Corporation.
SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- FLORIDA SERIES
PORTFOLIO OF INVESTMENTS May 31, 2000 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FLORIDA TAX-EXEMPT MUNICIPAL BONDS (87.8%)
General Obligation (3.2%)
$ 1,500 Florida Board of Education, Capital Outlay Refg Ser 1992 A ................... 6.40 % 06/01/19 $ 1,546,740
-------- -----------
Educational Facilities Revenue (3.1%)
1,500 Volusia County Educational Facilities Authority, Embry-Riddle
-------- Aeronautical University Ser 1996 A ......................................... 6.125 10/15/16 1,492,980
-----------
Electric Revenue (16.8%)
2,000 Jacksonville Electric Authority, St Johns River Power Park Issue 2 Ser 7 ..... 5.50 10/01/14 1,957,180
4,000 Lakeland, Refg Ser 1999 A (MBIA) ............................................. 0.00 10/01/14 1,730,960
1,000 Orlando Utilities Commission, Refg Ser 1993 A ................................ 5.25 10/01/14 949,670
Puerto Rico Electric Power Authority,
2,000 Power Ser O ................................................................ 5.00 07/01/12 1,873,840
2,000 Power Ser DD (FSA) ......................................................... 4.50 07/01/19 1,645,900
-------- -----------
11,000 8,157,550
-------- -----------
Hospital Revenue (10.2%)
1,000 Alachua County Health Facilities Authority, Shands Teaching Hospital &
Clinics Ser 1996 A (MBIA) .................................................. 6.25 12/01/11 1,062,180
1,000 Jacksonville, University Medical Center Inc Ser 1992 (Connie Lee) ............ 6.60 02/01/21 1,039,200
1,000 Orange County Health Facilities Authority, Adventist Health/Sunbelt
Ser 1995 (AMBAC) ........................................................... 5.25 11/15/20 901,390
935 Polk County Industrial Development Authority, Winter Haven Hospital
1985 Ser 2 (MBIA) .......................................................... 6.25 09/01/15 966,547
1,000 Tampa, Catholic Health East Ser 1998 A-1 (MBIA) .............................. 5.50 11/15/14 983,350
-------- -----------
4,935 4,952,667
-------- -----------
Industrial Development/Pollution Control Revenue (10.4%)
Citrus County,
500 Florida Power Corp Refg Ser 1992 B ......................................... 6.35 02/01/22 503,280
2,000 Florida Power Corp Refg Ser 1992 A ......................................... 6.625 01/01/27 2,031,600
1,500 St Johns County Industrial Development Authority, Professional Golf Hall
of Fame Ser 1996 (MBIA) .................................................... 5.80 09/01/16 1,502,475
1,000 St Lucie County, Florida Power & Light Co Ser 1992 (AMT) ..................... 6.70 05/01/27 1,034,100
-------- -----------
5,000 5,071,455
-------- -----------
Mortgage Revenue -- Single Family (3.5%)
200 Brevard County Housing Finance Authority, Refg Ser 1991 B (FSA) .............. 7.00 03/01/13 205,504
200 Florida Housing Finance Agency, GNMA Collateralized 1990 Ser G-1
(AMT) ...................................................................... 7.90 03/01/22 204,732
1,230 Puerto Rico Housing Finance Corporation, Portfolio One GNMA-Backed
Ser C ...................................................................... 6.85 10/15/23 1,273,862
-------- -----------
1,630 1,684,098
-------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- FLORIDA SERIES
PORTFOLIO OF INVESTMENTS May 31, 2000 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Public Facilities Revenue (2.1%)
$ 1,000 Palm Beach County, Criminal Justice Ser 1997 (FGIC) ....................... 5.75 % 06/01/13 $ 1,021,140
-------- -----------
Recreational Facilities Revenue (2.1%)
1,000 Miami Sports & Exhibition Authority, Refg Ser 1992 A (FGIC) ............... 6.15 10/01/20 1,010,330
-------- -----------
Resource Recovery Revenue (2.1%)
1,000 Lee County, Solid Waste Ser 1991 A (AMT) (MBIA) ........................... 6.50 10/01/13 1,029,370
-------- -----------
Transportation Facilities Revenue (19.7%)
1,000 Dade County, Aviation 1992 Ser B (AMT) (MBIA) ............................. 6.60 10/01/22 1,023,480
Greater Orlando Aviation Authority,
1,000 Ser 1997 (AMT) (FGIC) ................................................... 5.75 10/01/11 1,008,200
750 Ser 1992 A (AMT) (FGIC) ................................................. 6.50 10/01/12 778,905
1,000 Hillsborough County Aviation Authority, Tampa Int'l Airport
Refg Ser 1993 B (FGIC) .................................................. 5.60 10/01/19 963,350
1,500 Lee County, Refg Ser 1991 (AMBAC) ......................................... 6.00 10/01/17 1,504,605
2,000 Mid-Bay Bridge Authority, Refg Ser 1993 A (AMBAC) ......................... 5.95 10/01/22 1,988,560
1,500 Osceola County, Osceola Parkway (MBIA) .................................... 6.10 04/01/17 1,529,040
1,000 Puerto Rico Highway & Transportation Authority, Ser 1998 A ................ 4.75 07/01/38 784,170
-------- -----------
9,750 9,580,310
-------- -----------
Water & Sewer Revenue (14.6%)
2,000 Dade County, Water & Sewer Ser 1995 (FGIC) ................................ 5.50 10/01/25 1,865,520
1,500 Florida Governmental Utility Authority, Golden Gate Ser 1999 (AMBAC) ...... 5.25 07/01/18 1,393,980
2,000 Lee County, Water & Sewer 1999 Ser A (AMBAC) .............................. 4.75 10/01/23 1,646,760
1,000 Sunrise, Utility Refg Ser 1998 (AMBAC) .................................... 5.50 10/01/18 974,020
1,500 Tampa Bay Water, Ser 1998 B (FGIC) ........................................ 4.75 10/01/27 1,211,160
-------- -----------
8,000 7,091,440
-------- -----------
46,315 TOTAL FLORIDA TAX-EXEMPT MUNICIPAL BONDS
-------- (Identified Cost $43,461,805)........................................................................... 42,638,080
-----------
SHORT-TERM FLORIDA TAX-EXEMPT MUNICIPAL OBLIGATIONS (12.0%)
1,300 Collier County Health Facilities Authority, Cleveland Clinic Health
Ser 1999 (Demand 06/01/00) .............................................. 4.35* 01/01/33 1,300,000
2,300 Jacksonville Health Facilities Authority, Charity Obligated Group
Ser 1997 C (MBIA) (Demand 06/07/00) ..................................... 4.10* 08/15/19 2,300,000
1,200 Jacksonville Pollution Control Financing Authority, Florida Power & Light
Co Ser 1995 (Demand 06/01/00) ........................................... 4.45* 05/01/29 1,200,000
1,000 South Broward Hospital District, Ser 1991 B & C (AMBAC) ................... 6.611 05/01/01+ 1,032,900
-------- -----------
5,800 TOTAL SHORT-TERM FLORIDA TAX-EXEMPT MUNICIPAL OBLIGATIONS
-------- (Identified Cost $5,800,000)............................................................................ 5,832,900
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
10
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- FLORIDA SERIES
PORTFOLIO OF INVESTMENTS May 31, 2000 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 52,115 TOTAL INVESTMENTS (Identified Cost $49,261,805) (a) 99.8% $48,470,980
========
OTHER ASSETS IN EXCESS OF LIABILITIES ............ 0.2 98,529
----- -----------
NET ASSETS ....................................... 100.0% $48,569,509
===== ===========
</TABLE>
---------------
AMT Alternative Minimum Tax.
* Current coupon of variable rate demand obligation.
+ Prerefunded to call date shown.
(a) The aggregate cost for federal income tax purposes approximates
identified cost. The aggregate gross unrealized appreciation is
$809,895 and the aggregate gross unrealized depreciation is
$1,600,720, resulting in net unrealized depreciation of $790,825.
Bond Insurance:
---------------
AMBAC AMBAC Assurance Corporation.
Connie Lee Connie Lee Insurance Company -- A wholly owned subsidiary of AMBAC
Assurance Corporation.
FGIC Financial Guaranty Insurance Company.
FSA Financial Security Assurance Inc.
MBIA Municipal Bond Investors Assurance Corporation.
SEE NOTES TO FINANCIAL STATEMENTS
11
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- NEW JERSEY
SERIES
PORTFOLIO OF INVESTMENTS May 31, 2000 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NEW JERSEY TAX-EXEMPT MUNICIPAL BONDS (82.1%)
General Obligation (5.0%)
New Jersey,
$ 1,000 Refg Ser F ................................................................. 5.25 % 08/01/14 $ 956,580
1,000 Ser 1998 ................................................................... 4.50 03/01/18 829,800
-------- -----------
2,000 1,786,380
-------- -----------
Educational Facilities Revenue (12.8%)
500 New Jersey Economic Development Authority, The Seeing Eye Inc 1991 ........... 7.30 04/01/11 507,765
New Jersey Educational Facilities Authority,
1,000 Drew University 1998 Ser C (MBIA) .......................................... 5.00 07/01/17 899,920
1,000 Princeton University Ser 1999 A ............................................ 4.75 07/01/25 827,670
500 Rutgers, The State University Refg Ser R ................................... 6.50 05/01/13 519,205
2,000 University of Medicine & Dentistry, 1997 Ser A (MBIA) ...................... 5.00 09/01/17 1,792,660
-------- -----------
5,000 4,547,220
-------- -----------
Electric Revenue (5.3%)
2,000 Puerto Rico Electric Power Authority, Power Ser O ............................ 5.00 07/01/12 1,873,840
-------- -----------
Hospital Revenue (7.2%)
New Jersey Health Care Facilities Financing Authority,
1,000 AHS Hospital Corp Ser 1997 A (AMBAC) ....................................... 6.00 07/01/13 1,032,940
1,000 Atlantic City Medical Center Ser C ......................................... 6.80 07/01/11 1,035,460
465 Robert Wood Johnson University Hospital Ser B (MBIA) ....................... 6.625 07/01/16 480,838
-------- -----------
2,465 2,549,238
-------- -----------
Industrial Development/Pollution Control Revenue (4.3%)
500 Middlesex County Pollution Control Financing Authority, Amerada Hess
Corp Refg Ser 1992 ......................................................... 6.875 12/01/22 511,450
1,000 Salem County Pollution Control Financing Authority, E I du Pont
de Nemours & Co 1992 Ser A (AMT) ........................................... 6.125 07/15/22 1,001,530
-------- -----------
1,500 1,512,980
-------- -----------
Mortgage Revenue -- Multi-Family (10.0%)
New Jersey Housing & Mortgage Finance Agency,
2,000 1995 Ser A (AMBAC) ......................................................... 6.00 11/01/14 1,999,880
1,000 Presidential Plaza at Newport -- FHA Insured Mtges Refg 1991 Ser 1 ......... 7.00 05/01/30 1,040,300
500 Rental 1991 Ser A (AMT) .................................................... 7.25 11/01/22 512,570
-------- -----------
3,500 3,552,750
-------- -----------
Nursing & Health Related Facilities Revenue (2.5%)
885 New Jersey Health Care Facilities Financing Authority, Spectrum For Living
-------- -- FHA Insured Mortgage Refg Ser B ......................................... 6.50 02/01/22 900,027
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
12
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- NEW JERSEY
SERIES
PORTFOLIO OF INVESTMENTS May 31, 2000 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Public Facilities Revenue (2.4%)
$ 1,000 Puerto Rico Infrastructure Financing Authority, Special Tax Ser 1997 A
-------- (AMBAC) ................................................................... 5.00 % 07/01/28 $ 864,360
-----------
Recreational Facilities Revenue (3.6%)
New Jersey Sports & Exposition Authority,
500 State Contract 1993 Ser A ................................................. 5.50 09/01/23 473,010
1,000 State Contract 1998 Ser A (MBIA) .......................................... 4.50 03/01/24 795,280
-------- -----------
1,500 1,268,290
-------- -----------
Resource Recovery Revenue (2.5%)
900 Warren County Pollution Control Financing Authority, Warren Energy
-------- Resource Co Ltd Partnership Ser 1984 (MBIA) ............................... 6.60 12/01/07 871,290
-----------
Transportation Facilities Revenue (12.9%)
1,000 Delaware River Port Authority, Ser 1995 (FGIC) .............................. 5.50 01/01/26 938,700
1,300 New Jersey Highway Authority, Sr Parkway Refg 1992 Ser ...................... 6.25 01/01/14 1,335,061
1,000 New Jersey Transportation Trust Authority, 1998 Ser A (FSA) ................. 4.50 06/15/19 818,300
1,500 Port Authority of New York & New Jersey, Cons 99th Ser (AMT) (FGIC) ......... 5.75 05/01/15 1,488,060
-------- -----------
4,800 4,580,121
-------- -----------
Water & Sewer Revenue (13.6%)
1,000 Atlantic City Municipal Utilities Authority, Refg Ser 1993 .................. 5.75 05/01/17 986,130
1,000 Bergen County Utilities Authority, Water 1998 Ser A (FGIC) .................. 4.75 12/15/15 878,460
1,000 Camden County Municipal Utilities Authority, Sewer Refg Ser 1997 (FGIC) ..... 5.25 07/15/17 927,420
1,000 Northwest Bergen County Utilities Authority, Refg 1992 Ser (MBIA) ........... 6.00 07/15/13 1,019,750
1,000 Passaic Valley Sewerage Commissioners, Ser 1992 D (AMBAC) ................... 5.75 12/01/13 1,006,680
-------- -----------
5,000 4,818,440
-------- -----------
30,550 TOTAL NEW JERSEY TAX-EXEMPT MUNICIPAL BONDS
-------- (Identified Cost $29,654,494) ..................................................................... 29,124,936
-----------
SHORT-TERM NEW JERSEY TAX-EXEMPT MUNICIPAL OBLIGATIONS (16.4%)
1,600 Gloucester County, Mobil Oil Refining Corp Ser 1993 A (Demand 06/07/00) ..... 3.65* 12/01/03 1,600,000
New Jersey Economic Development Authority,
1,700 Natural Gas Co Ser 1995 A (AMT) (AMBAC) (Demand 06/01/00) ................. 4.50* 08/01/30 1,700,000
700 United Water Inc Ser 1996 B (AMBAC) (Demand 06/01/00) ..................... 4.45* 11/01/25 700,000
New Jersey Turnpike Authority,
1,000 Ser 1991 C ................................................................ 5.75 01/01/01+ 1,006,040
800 Ser 1991 D (FGIC) (Demand 06/07/00) ....................................... 3.80* 01/01/18 800,000
-------- -----------
5,800 TOTAL SHORT-TERM NEW JERSEY TAX-EXEMPT MUNICIPAL OBLIGATIONS
-------- (Identified Cost $5,800,000) ...................................................................... 5,806,040
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
13
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- NEW JERSEY
SERIES
PORTFOLIO OF INVESTMENTS May 31, 2000 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 36,350 TOTAL INVESTMENTS (Identified Cost $35,454,494) (a)......... 98.5% $34,930,976
========
OTHER ASSETS IN EXCESS OF LIABILITIES ...................... 1.5 533,931
----- -----------
NET ASSETS ................................................. 100.0% $35,464,907
===== ===========
</TABLE>
---------------
AMT Alternative Minimum Tax.
+ Prerefunded to call date shown.
* Current coupon of variable rate demand obligation.
(a) The aggregate cost for federal income tax purposes approximates
identified cost. The aggregate gross unrealized appreciation is
$644,829 and the aggregate gross unrealized depreciation is $1,168,347,
resulting in net unrealized depreciation of $523,518.
Bond Insurance:
---------------
AMBAC AMBAC Assurance Corporation.
FGIC Financial Guaranty Insurance Company.
FSA Financial Security Assurance Inc.
MBIA Municipal Bond Investors Assurance Corporation.
SEE NOTES TO FINANCIAL STATEMENTS
14
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- PENNSYLVANIA
SERIES
PORTFOLIO OF INVESTMENTS May 31, 2000 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PENNSYLVANIA TAX-EXEMPT MUNICIPAL BONDS (86.4%)
General Obligation (7.0%)
$ 2,000 Berks County, Second Ser 1992 (FGIC) ...................................... 5.75 % 11/15/12 $ 2,006,740
1,000 Delaware County, Ser 1999 ................................................. 5.125 10/01/19 894,480
600 Puerto Rico, Public Improvement Refg Ser 1992 A ........................... 6.00 07/01/14 607,092
-------- -----------
3,600 3,508,312
-------- -----------
Educational Facilities Revenue (7.2%)
1,000 Delaware County Authority, Villanova University Ser 1995 (AMBAC) .......... 5.80 08/01/25 965,300
Pennsylvania Higher Educational Facilities Authority,
1,000 Allegheny College Refg Ser 1998 A (MBIA) ................................ 5.00 11/01/22 865,410
1,000 University of Pennsylvania Ser 1998 ..................................... 4.625 07/15/30 775,100
1,000 Pennsylvania State University, Second Refg Ser 1992 ....................... 5.50 08/15/16 965,610
-------- -----------
4,000 3,571,420
-------- -----------
Electric Revenue (3.3%)
Puerto Rico Electric Power Authority,
1,000 Power Ser DD (FSA) ...................................................... 4.50 07/01/19 822,950
1,000 Ser GG (FSA) ............................................................ 4.75 07/01/21 844,130
-------- -----------
2,000 1,667,080
-------- -----------
Hospital Revenue (14.5%)
Allegheny County Hospital Development Authority,
1,000 Catholic Health East Health Ser 1998 A (AMBAC) .......................... 4.875 11/15/26 809,950
1,000 Presbyterian University Health Inc Ser 1992 B (MBIA) .................... 6.00 11/01/12 1,015,010
2,000 Delaware County Authority, Catholic Health East Health Ser 1998 A
(AMBAC) ................................................................. 4.875 11/15/26 1,619,900
Philadelphia Hospitals & Higher Education Facilities Authority,
1,750 Chestnut Hill Hospital Ser of 1992 ...................................... 6.375 11/15/11 1,659,962
1,000 Children's Hospital of Philadelphia Ser A of 1993 ....................... 5.375 02/15/14 902,210
1,250 Sayre Health Care Facilities Authority, Ser 1985 (AMBAC) .................. 7.15 12/01/10 1,309,588
-------- -----------
8,000 7,316,620
-------- -----------
Mortgage Revenue -- Multi-Family (2.0%)
1,000 Pennsylvania Housing Finance Agency, Ser 1992-35 D (AMT) .................. 6.20 04/01/25 977,840
-------- -----------
Mortgage Revenue -- Single Family (5.4%)
2,000 Pennsylvania Housing Finance Agency, Ser 1991-31 C (AMT) .................. 7.00 10/01/23 2,061,260
635 Puerto Rico Housing Finance Corporation, Portfolio One GNMA-Backed
Ser C ................................................................... 6.85 10/15/23 657,644
-------- -----------
2,635 2,718,904
-------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- PENNSYLVANIA
SERIES
PORTFOLIO OF INVESTMENTS May 31, 2000 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Recreational Facilities Revenue (3.2%)
$ 2,000 Philadelphia Industrial Development Authority, The Franklin Institute
Ser 1998 ................................................................ 5.20 % 06/15/26 $ 1,602,600
------- -----------
Resource Recovery Revenue (2.0%)
1,000 Montgomery County Industrial Development Authority, Ser 1989 .............. 7.50 01/01/12 1,022,520
------- -----------
Student Loan Revenue (4.1%)
Pennsylvania Higher Education Assistance Agency,
1,000 1988 Ser D (AMT) (AMBAC) ................................................ 6.05 01/01/19 992,230
1,000 1991 Ser B (AMT) (AMBAC) ................................................ 6.85 09/01/26 1,068,370
------- -----------
2,000 2,060,600
------- -----------
Transportation Facilities Revenue (22.8%)
1,000 Guam, Highway 1992 Ser A (FSA) ............................................ 6.30 05/01/12 1,030,980
Allegheny County, Greater Pittsburgh Int'l Airport
1,000 Ser 1997 B (MBIA) ....................................................... 5.00 01/01/19 878,660
500 Ser 1992 (AMT) (FSA) .................................................... 6.625 01/01/22 507,100
2,000 Delaware River Port Authority, Ser 1995 (FGIC) ............................ 5.50 01/01/26 1,877,400
Pennsylvania Turnpike Commission,
2,000 Ser O 1992 (FGIC) ....................................................... 6.00 12/01/12 2,030,640
2,000 Ser A 1998 (AMBAC) ...................................................... 4.75 12/01/27 1,615,260
1,000 Philadelphia Industrial Development Authority, Philadelphia Airport
Ser 1998 A (AMT) (FGIC) ................................................. 5.00 07/01/23 837,570
1,000 Pittsburgh Public Parking Authority, Ser 1992 A (FGIC) .................... 5.875 12/01/12 1,009,620
1,000 Southeastern Pennsylvania Transportation Authority, Ser A 1999 (FGIC) ..... 5.25 03/01/18 921,750
1,000 Puerto Rico Highway & Transportation Authority, Ser 1998 A ................ 4.75 07/01/38 784,170
------- -----------
12,500 11,493,150
------- -----------
Water & Sewer Revenue (6.6%)
2,000 Philadelphia, Water & Wastewater Ser 1995 (MBIA) .......................... 6.25 08/01/11 2,128,900
2,000 Pittsburgh Water & Sewer Authority, 1998 Ser B (FGIC) ..................... 0.00 09/01/28 337,840
1,000 West Mifflin Sanitary Sewer Municipal Authority, Ser 1998 (MBIA) .......... 5.00 08/01/23 862,190
------- -----------
5,000 3,328,930
------- -----------
Other Revenue (7.9%)
1,500 Pennsylvania Finance Authority, Cap Impr Refg Ser 1993 .................... 6.60 11/01/09 1,565,610
2,750 Philadelphia, Gas Works Second Ser 1998 (FSA) ............................. 5.00 07/01/18 2,413,043
------- -----------
4,250 3,978,653
------- -----------
Refunded (0.4%)
200 Lehigh County Industrial Development Authority, Strawbridge & Clothier
------- Refg Ser of 1991 (ETM) .................................................. 7.20 12/15/01 204,586
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST -- PENNSYLVANIA
SERIES
PORTFOLIO OF INVESTMENTS May 31, 2000 (unaudited) continued
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN COUPON MATURITY
THOUSANDS RATE DATE VALUE
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$48,185 TOTAL PENNSYLVANIA TAX-EXEMPT MUNICIPAL BONDS
------- (Identified Cost $45,629,283)...................................................................... $43,451,215
-----------
SHORT-TERM PENNSYLVANIA TAX-EXEMPT MUNICIPAL OBLIGATIONS (12.1%)
2,000 Delaware County Industrial Development Authority, United Parcel Service
Inc Ser 1985 (Demand 06/01/00) .......................................... 4.30*% 12/01/15 2,000,000
2,100 Philadelphia Hospital and Higher Education Facilities Authority, Children's
Hospital of Philadelphia Ser 1992 (Demand 06/01/00) .................... 4.35* 03/01/27 2,100,000
2,000 Philadelphia Industrial Development Authority, The Fox Chase Cancer
Center Ser 1997 (Demand 06/01/00) ....................................... 4.35* 07/01/25 2,000,000
------- -----------
6,100 TOTAL SHORT-TERM PENNSYLVANIA TAX-EXEMPT MUNICIPAL OBLIGATIONS
------- (Identified Cost $6,100,00) ....................................................................... 6,100,000
-----------
$54,285 TOTAL INVESTMENTS (Identified Cost $51,729,283) (a)................................... 98.5% 49,551,215
=======
OTHER ASSETS IN EXCESS OF LIABILITIES ................................................ 1.5 765,710
----- -----------
NET ASSETS ........................................................................... 100.0% $50,316,925
===== ===========
</TABLE>
---------------
AMT Alternative Minimum Tax.
ETM Escrowed to maturity.
* Current coupon of variable rate demand obligation.
(a) The aggregate cost for federal income tax purposes approximates
identified cost. The aggregate gross unrealized appreciation is
$543,804 and the aggregate gross unrealized depreciation is $2,721,872,
resulting in net unrealized depreciation of $2,178,068.
Bond Insurance:
---------------
AMBAC AMBAC Assurance Corporation.
FGIC Financial Guaranty Insurance Company.
FSA Financial Security Assurance Inc.
MBIA Municipal Bond Investors Assurance Corporation.
SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
May 31, 2000 (unaudited)
<TABLE>
<CAPTION>
ARIZONA FLORIDA NEW JERSEY PENNSYLVANIA
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in securities, at value* ....................... $31,381,958 $48,470,980 $34,930,976 $49,551,215
Cash ....................................................... 56,113 8,544 29,383 97,065
Receivable for:
Investments sold ......................................... 1,146,340 -- -- --
Interest ................................................. 653,115 617,621 594,137 766,834
Prepaid expenses ........................................... 17,120 13,019 14,180 11,925
----------- ----------- ----------- -----------
TOTAL ASSETS ............................................. 33,254,646 49,110,164 35,568,676 50,427,039
----------- ----------- ----------- -----------
LIABILITIES:
Payable for:
Shares of beneficial interest repurchased ................ -- 463,375 45,200 31,201
Dividends to shareholders ................................ 22,505 34,183 24,123 35,407
Investment management fee ................................ 10,492 15,541 11,250 15,885
Plan of distribution fee ................................. 4,496 6,660 4,821 6,808
Accrued expenses ........................................... 18,374 20,896 18,375 20,813
----------- ----------- ----------- -----------
TOTAL LIABILITIES ........................................ 55,867 540,655 103,769 110,114
----------- ----------- ----------- -----------
NET ASSETS ............................................... $33,198,779 $48,569,509 $35,464,907 $50,316,925
=========== =========== =========== ===========
COMPOSITION OF NET ASSETS:
Paid-in-capital ............................................ $34,170,413 $49,630,365 $36,375,019 $52,484,932
Accumulated undistributed net realized gain (loss) ......... (284,795) (270,031) (386,594) 10,061
Net unrealized depreciation ................................ (686,839) (790,825) (523,518) (2,178,068)
----------- ----------- ----------- -----------
NET ASSETS ............................................... $33,198,779 $48,569,509 $35,464,907 $50,316,925
=========== =========== =========== ===========
*IDENTIFIED COST ......................................... $32,068,797 $49,261,805 $35,454,494 $51,729,283
=========== =========== =========== ===========
SHARES OF BENEFICIAL INTEREST OUTSTANDING ................ 3,393,947 4,874,645 3,530,096 5,016,807
=========== =========== =========== ===========
NET ASSET VALUE PER SHARE
(unlimited authorized shares of $.01 par value) ........... $9.78 $9.96 $10.05 $10.03
===== ===== ====== ======
MAXIMUM OFFERING PRICE PER SHARE
(net asset value plus 4.17% of net asset value)** ......... $10.19 $10.38 $10.47 $10.45
====== ====== ====== ======
</TABLE>
---------------
** On sales of $25,000 or more, the offering price is reduced.
SEE NOTES TO FINANCIAL STATEMENTS
18
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
FINANCIAL STATEMENTS, continued
STATEMENTS OF OPERATIONS
For the six months ended May 31, 2000 (unaudited)
<TABLE>
<CAPTION>
ARIZONA FLORIDA NEW JERSEY PENNSYLVANIA
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET INVESTMENT INCOME:
INTEREST INCOME ............................... $ 978,521 $1,431,066 $1,035,454 $1,396,445
---------- ---------- ---------- ----------
EXPENSES
Investment management fee ..................... 60,947 89,344 64,392 84,898
Plan of distribution fee ...................... 25,270 37,775 26,642 35,762
Professional fees ............................. 13,920 13,661 13,964 11,540
Transfer agent fees and expenses .............. 5,920 8,811 9,612 7,884
Shareholder reports and notices ............... 6,396 8,384 8,847 8,912
Trustees' fees and expenses ................... 933 1,382 983 1,126
Custodian fees ................................ 1,129 1,481 1,264 1,875
Registration fees ............................. 4,324 2,581 2,579 2,172
Other ......................................... 2,978 3,048 3,152 3,535
---------- ---------- ---------- ----------
TOTAL EXPENSES .............................. 121,817 166,467 131,435 157,704
Less: expense offset .......................... (1,127) (1,481) (1,261) (1,872)
---------- ---------- ---------- ----------
NET EXPENSES ................................ 120,690 164,986 130,174 155,832
---------- ---------- ---------- ----------
NET INVESTMENT INCOME ....................... 857,831 1,266,080 905,280 1,240,613
---------- ---------- ---------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) ...................... (215,677) (104,301) (317,450) 16,711
Net change in unrealized depreciation ......... (206,898) (603,713) (325,659) (888,829)
---------- ---------- ---------- ----------
NET LOSS .................................... (422,575) (708,014) (643,109) (872,118)
---------- ---------- ---------- ----------
NET INCREASE .................................. $ 435,256 $ 558,066 $ 262,171 $ 368,495
========== ========== ========== ==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
19
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
FINANCIAL STATEMENTS, continued
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
ARIZONA FLORIDA
----------------------------------- ----------------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED
MAY 31, 2000 NOVEMBER 30, 1999 MAY 31, 2000 NOVEMBER 30, 1999
-------------------------------------------------------------------------------------------------------------------------------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income .................................. $ 857,831 $ 1,900,085 $ 1,266,080 $ 2,720,903
Net realized loss ...................................... (215,677) (69,115) (104,301) (165,729)
Net change in unrealized appreciation/depreciation ..... (206,898) (2,859,823) (603,713) (4,099,311)
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) .............................. 435,256 (1,028,853) 558,066 (1,544,137)
----------- ----------- ----------- -----------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net investment income .................................. (857,831) (1,900,085) (1,266,080) (2,720,903)
Net realized gain ...................................... -- (609,152) -- (1,997,025)
----------- ----------- ----------- -----------
TOTAL DIVIDENDS AND DISTRIBUTIONS .................... (857,831) (2,509,237) (1,266,080) (4,717,928)
----------- ----------- ----------- -----------
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST:
Net proceeds from sales ................................ 399,771 3,943,050 1,240,748 6,706,394
Reinvestment of dividends and distributions ............ 420,955 1,325,710 428,421 1,979,787
Cost of shares repurchased ............................. (4,066,566) (6,518,686) (5,946,618) 10,131,177)
----------- ----------- ----------- -----------
NET DECREASE ......................................... (3,245,840) (1,249,926) (4,277,449) (1,444,996)
----------- ----------- ----------- -----------
TOTAL DECREASE ....................................... (3,668,415) (4,788,016) (4,985,463) (7,707,061)
NET ASSETS:
Beginning of period .................................... 36,867,194 41,655,210 53,554,972 61,262,033
----------- ----------- ----------- -----------
END OF PERIOD ........................................ $33,198,779 $36,867,194 $48,569,509 $53,554,972
=========== =========== =========== ===========
SHARES ISSUED AND REPURCHASED:
Sold ................................................... 40,715 375,871 123,799 623,037
Reinvestment of dividends and distributions ............ 42,820 127,464 42,754 185,150
Repurchased ............................................ (412,476) (632,656) (593,496) (953,641)
----------- ----------- ----------- -----------
NET DECREASE ......................................... (328,941) (129,321) (426,943) (145,454)
=========== =========== =========== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
20
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
FINANCIAL STATEMENTS, continued
STATEMENT OF CHANGES IN NET ASSETS, continued
<TABLE>
<CAPTION>
NEW JERSEY PENNSYLVANIA
----------------------------------- ----------------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED
MAY 31, 2000 NOVEMBER 30, 1999 MAY 31, 2000 NOVEMBER 30, 1999
-------------------------------------------------------------------------------------------------------------------------------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income .................................. $ 905,280 $ 1,926,757 $ 1,240,613 $ 2,537,112
Net realized gain (loss) ............................... (317,450) (69,142) 16,711 (6,646)
Net change in unrealized appreciation/depreciation ..... (325,659) (2,840,301) (888,829) (4,132,749)
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) .............................. 262,171 (982,686) 368,495 (1,602,283)
----------- ----------- ----------- -----------
DIVIDENDS AND DISTRIBUTIONS FROM:
Net investment income .................................. (905,280) (1,926,757) (1,240,613) (2,537,112)
Net realized gain ...................................... -- (609,503) -- (578,726)
----------- ----------- ----------- -----------
TOTAL DIVIDENDS AND DISTRIBUTIONS .................... (905,280) (2,536,260) (1,240,613) (3,115,838)
----------- ----------- ----------- -----------
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST:
Net proceeds from sales ................................ 1,016,444 3,899,668 5,844,882 3,894,419
Reinvestment of dividends and distributions ............ 464,891 1,486,480 774,667 2,031,604
Cost of shares repurchased ............................. (3,939,701) (5,103,832) (4,489,620) (5,957,035)
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) .............................. (2,458,366) 282,316 2,129,929 (31,012)
----------- ----------- ----------- -----------
TOTAL INCREASE (DECREASE) ............................ (3,101,475) (3,236,630) 1,257,811 (4,749,133)
NET ASSETS:
Beginning of period .................................... 38,566,382 41,803,012 49,059,114 53,808,247
----------- ----------- ----------- -----------
END OF PERIOD ........................................ $35,464,907 $38,566,382 $50,316,925 $49,059,114
=========== =========== =========== ===========
SHARES ISSUED AND REPURCHASED:
Sold ................................................... 100,592 362,856 572,884 359,418
Reinvestment of dividends and distributions ............ 46,018 138,573 76,933 189,500
Repurchased ............................................ (389,446) (478,651) (446,574) (560,476)
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) .............................. (242,836) 22,778 203,243 (11,558)
=========== =========== =========== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
21
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
NOTES TO FINANCIAL STATEMENTS May 31, 2000 (unaudited)
1. ORGANIZATION AND ACCOUNTING POLICIES
Morgan Stanley Dean Witter Multi-State Municipal Series Trust (the "Fund") is
registered under the Investment Company Act of 1940, as amended (the "Act"), as
a non-diversified, open-end management investment company. The investment
objective of each Series is to provide a high level of current income exempt
from both Federal and the designated state income taxes consistent with
preservation of capital.
The Fund, organized on October 29, 1990, as a Massachusetts business trust, is
comprised of ten separate Series (the "Series"): the Arizona Series, the
California Series, the Florida Series, the Massachusetts Series, the Michigan
Series, the Minnesota Series, the New Jersey Series, the New York Series, the
Ohio Series and the Pennsylvania Series. Each of the Series commenced
operations on January 15, 1991, with the exception of the Arizona Series which
commenced operations on April 30, 1991. The accompanying financial statements
and notes are those of the Arizona Series, the Florida Series, the New Jersey
Series and the Pennsylvania Series only.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts and disclosures. Actual results could differ
from those estimates.
The following is a summary of significant accounting policies:
A. VALUATION OF INVESTMENTS -- Portfolio securities are valued by an outside
independent pricing service approved by the Fund's Trustees. The pricing
service has informed the Fund that in valuing the portfolio securities, it uses
both a computerized matrix of tax-exempt securities and evaluations by its
staff, in each case based on information concerning market transactions and
quotations from dealers which reflect the bid side of the market each day. The
portfolio securities are thus valued by reference to a combination of
transactions and quotations for the same or other securities believed to be
comparable in quality, coupon, maturity, type of issue, call provisions,
trading characteristics and other features deemed to be relevant. Short-term
debt securities having a maturity date of more than sixty days at time of
purchase are valued on a mark-to-market basis until sixty days prior to
maturity and thereafter at amortized cost based on their value on the 61st day.
Short-term debt securities having a maturity date of sixty days or less at the
time of purchase are valued at amortized cost.
B. ACCOUNTING FOR INVESTMENTS -- Security transactions are accounted for on the
trade date (date the order to buy or sell is executed). Realized gains and
losses on security transactions are determined by the identified cost method.
Discounts are accreted and premiums are amortized over the life of the
respective securities. Interest income is accrued daily.
22
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
NOTES TO FINANCIAL STATEMENTS May 31, 2000 (unaudited) continued
C. FEDERAL INCOME TAX STATUS -- It is the Fund's policy to comply individually
for each Series with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its taxable and
nontaxable income to its shareholders. Accordingly, no federal income tax
provision is required.
D. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- The Fund records dividends
and distributions to its shareholders on the record date. The amount of
dividends and distributions from net investment income and net realized capital
gains are determined in accordance with federal income tax regulations which
may differ from generally accepted accounting principles. These "book/tax"
differences are either considered temporary or permanent in nature. To the
extent these differences are permanent in nature, such amounts are reclassified
within the capital accounts based on their federal tax-basis treatment;
temporary differences do not require reclassification. Dividends and
distributions which exceed net investment income and net realized capital gains
for financial reporting purposes but not for tax purposes are reported as
dividends in excess of net investment income or distributions in excess of net
realized capital gains. To the extent they exceed net investment income and net
realized capital gains for tax purposes, they are reported as distributions of
paid-in-capital.
E. EXPENSES -- Direct expenses are charged to the respective Series and general
corporate expenses are allocated on the basis of relative net assets or equally
among the Series.
2. INVESTMENT MANAGEMENT AGREEMENT
Pursuant to an Investment Management Agreement, each Series of the Fund pays
Morgan Stanley Dean Witter Advisors Inc. (the "Investment Manager") a
management fee, accrued daily and payable monthly, by applying the annual rate
of 0.35% to the daily net assets of each Series determined as of the close of
each business day.
3. PLAN OF DISTRIBUTION
Morgan Stanley Dean Witter Distributors Inc. (the "Distributor"), an affiliate
of the Investment Manager, is the distributor of the Fund's shares and, in
accordance with a Plan of Distribution (the "Plan") pursuant to Rule 12b-1
under the Act, finances certain expenses in connection with the distribution of
shares of the Fund.
Under the Plan, the expenses of certain activities and services provided by
Dean Witter Reynolds Inc. ("DWR"), an affiliate of the Investment Manager and
Distributor, and others who engage in or support
23
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
NOTES TO FINANCIAL STATEMENTS May 31, 2000 (unaudited) continued
distribution of the Fund's shares or who service shareholder accounts,
including overhead and telephone expenses incurred in connection with the
distribution of the Fund's shares, are reimbursed.
Reimbursements for these expenses will be made in monthly payments by the Fund
to the Distributor, which will in no event exceed an amount equal to a payment
at the annual rate of 0.15% of the Fund's average daily net assets during the
month. Expenses incurred by the Distributor pursuant to the Plan in any fiscal
year will not be reimbursed by the Fund through payments accrued in any
subsequent fiscal year. For the six months ended May 31, 2000, the distribution
fees were accrued at the following annual rates:
ARIZONA FLORIDA NEW JERSEY PENNSYLVANIA
--------- --------- ------------ -------------
Annual Rate ......... 0.14% 0.15% 0.14% 0.15%
==== ==== ==== ====
For the six months ended May 31, 2000, the Distributor has informed the Fund
that commissions from the sale of the Fund's shares of beneficial interest were
as follows:
ARIZONA FLORIDA NEW JERSEY PENNSYLVANIA
--------- --------- ------------ -------------
Commissions ......... $9,365 $36,785 $33,671 $50,842
====== ======= ======= =======
Such commissions are not an expense of the Fund; they are deducted from the
proceeds of the sale of the Fund's shares of beneficial interest.
4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES
The cost of purchases and proceeds from the sales of portfolio securities,
excluding short-term investments, for the six months ended May 31, 2000 were as
follows:
ARIZONA FLORIDA NEW JERSEY PENNSYLVANIA
------------- ------------- ------------ -------------
Purchases ......... $ -- $ -- $1,014,730 $2,492,270
========= ========= ========== ==========
Sales ............. $4,412,084 $2,093,030 $4,837,746 $2,386,005
========== ========== ========== ==========
The Fund has an unfunded noncontributory defined benefit pension plan covering
all independent Trustees of the Fund who will have served as independent
Trustees for at least five years at the time of retirement. Benefits under this
plan are based on years of service and compensation during the last five years
of service. Aggregate pension costs for the six months ended May 31, 2000
included in Trustees' fees and expenses in the Statement of Operations and the
accrued pension liability included in accrued expenses in the Statement of
Assets and Liabilities for each of the respective Series were as follows:
24
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
NOTES TO FINANCIAL STATEMENTS May 31, 2000 (unaudited) continued
<TABLE>
<CAPTION>
ARIZONA FLORIDA NEW JERSEY PENNSYLVANIA
--------- --------- ------------ -------------
<S> <C> <C> <C> <C>
Aggregate Pension Costs ......... $276 $399 $278 $361
==== ==== ==== ====
<CAPTION>
ARIZONA FLORIDA NEW JERSEY PENNSYLVANIA
--------- --------- ------------ -------------
<S> <C> <C> <C> <C>
Accrued Pension Liability ......... $4,458 $6,724 $4,350 $4,992
====== ====== ====== ======
</TABLE>
Morgan Stanley Dean Witter Trust FSB, an affiliate of the Investment Manager
and Distributor, is the Fund's transfer agent. At May 31, 2000, each of the
Series had transfer agent fees and expenses payable as follows:
<TABLE>
<CAPTION>
ARIZONA FLORIDA NEW JERSEY PENNSYLVANIA
--------- --------- ------------ -------------
<S> <C> <C> <C> <C>
Transfer Agent Fees And Expenses Payable ......... $ -- $330 $307 $191
========= ==== ==== ====
</TABLE>
5. FEDERAL INCOME TAX STATUS
At November 30, 1999, the following Series had approximate net capital loss
carryovers which will be available through November 30, 2007 to offset future
capital gains to the extent provided by regulations:
<TABLE>
<S> <C>
Arizona ............................................................. $ 69,000
Florida ............................................................. 166,000
New Jersey .......................................................... 69,000
Pennsylvania ........................................................ 7,000
</TABLE>
6. SUBSEQUENT EVENT -- MERGERS
As of the close of business on July 21, 2000, the Massachusetts Series, the
Michigan Series, the Minnesota Series and the Ohio Series were merged into
Morgan Stanley Dean Witter Tax-Exempt Securities Trust pursuant to four
reorganization plans approved by shareholders of the Massachusetts Series, the
Michigan Series, the Minnesota Series and the Ohio Series, respectively.
As of the close of business on July 21, 2000, the California Series merged into
Morgan Stanley Dean Witter California Tax-Free Income Fund pursuant to a
reorganization plan approved by the shareholders of the California Series.
As of the close of business on July 21, 2000, the New York Series merged into
Morgan Stanley Dean Witter New York Tax-Free Income Fund pursuant to a
reorganization plan approved by the shareholders of the New York Series.
25
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
FINANCIAL HIGHLIGHTS
Selected ratios and per share data for a share of beneficial interest
outstanding throughout each period:
<TABLE>
<CAPTION>
NET ASSET TOTAL
YEAR VALUE NET NET REALIZED TOTAL FROM DISTRIBUTIONS DIVIDENDS
ENDED BEGINNING INVESTMENT AND UNREALIZED INVESTMENT DIVIDENDS TO TO AND
NOVEMBER 30 OF PERIOD INCOME GAIN (LOSS) OPERATIONS SHAREHOLDERS SHAREHOLDERS DISTRIBUTIONS
------------- ----------- ------------ ---------------- ------------ -------------- --------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
ARIZONA SERIES
1995 $ 9.42 $ 0.54 $ 1.23 $ 1.77 $ (0.54) -- $ (0.54)
1996 10.65 0.54 (0.06) 0.48 (0.54) -- (0.54)
1997 10.59 0.53 0.05 0.58 (0.53) -- (0.53)
1998 10.64 0.51 0.17 0.68 (0.51) -- (0.51)
1999 10.81 0.49 (0.75) (0.26) (0.49) $ (0.16) (0.65)
2000* 9.90 0.24 (0.12) 0.12 (0.24) -- (0.24)
FLORIDA SERIES
1995 9.60 0.56 1.28 1.84 (0.56) -- (0.56)
1996 10.88 0.55 (0.02) 0.53 (0.55) -- (0.55)
1997 10.86 0.54 0.11 0.65 (0.54) -- (0.54)
1998 10.97 0.52 0.28 0.80 (0.52) -- (0.52)
1999 11.25 0.50 (0.78) (0.28) (0.50) (0.37) (0.87)
2000* 10.10 0.25 (0.14) 0.11 (0.25) -- (0.25)
NEW JERSEY SERIES
1995 9.47 0.56 1.26 1.82 (0.56) -- (0.56)
1996 10.73 0.55 (0.03) 0.52 (0.55) -- (0.55)
1997 10.70 0.53 0.18 0.71 (0.53) -- (0.53)
1998 10.88 0.53 0.27 0.80 (0.53) -- (0.53)
1999 11.15 0.51 (0.77) (0.26) (0.51) (0.16) (0.67)
2000* 10.22 0.25 (0.17) 0.08 (0.25) -- (0.25)
PENNSYLVANIA SERIES
1995 9.56 0.55 1.29 1.84 (0.55) -- (0.55)
1996 10.85 0.55 -- 0.55 (0.55) -- (0.55)
1997 10.85 0.54 0.14 0.68 (0.54) (0.02) (0.56)
1998 10.97 0.53 0.18 0.71 (0.53) -- (0.53)
1999 11.15 0.52 (0.84) (0.32) (0.52) (0.12) (0.64)
2000* 10.19 0.26 (0.16) 0.10 (0.26) -- (0.26)
</TABLE>
---------------
* For the six months ended May 31, 2000 (unaudited).
+ Does not reflect the deduction of sales load. Calculated based on the
net asset value as of the last business day of the period.
(1) Not annualized.
(2) Annualized.
(3) Does not reflect the effect of expense offset of 0.01%.
SEE NOTES TO FINANCIAL STATEMENTS
26
<PAGE>
<TABLE>
<CAPTION>
RATIOS TO AVERAGE NET ASSETS
-------------------------------------
NET ASSET NET ASSETS
VALUE END OF NET PORTFOLIO
END OF TOTAL PERIOD INVESTMENT TURNOVER
PERIOD RETURN+ (000'S) EXPENSES INCOME RATE
------------- ---------------- ----------- --------------------- --------------- ------------
<S> <C> <C> <C> <C> <C>
$ 10.65 19.21% $50,290 0.65%(3) 5.33% 6%
10.59 4.63 46,248 0.65 (3) 5.12 9
10.64 5.64 41,891 0.66 (3) 5.04 2
10.81 6.56 41,655 0.65 (3) 4.77 30
9.90 (2.53) 36,867 0.66 (3) 4.72 13
9.78 1.23 (1) 33,199 0.70 (2)(3) 4.93 (2) --
10.88 19.54 74,058 0.63 (3) 5.34 8
10.86 5.03 70,542 0.62 (3) 5.13 25
10.97 6.10 65,088 0.62 5.02 7
11.25 7.58 61,262 0.62 (3) 4.69 26
10.10 (2.70) 53,555 0.64 (3) 4.69 13
9.96 1.07 (1) 48,570 0.65 (2)(3) 4.95 (2) --
10.73 19.60 47,889 0.67 (3) 5.42 14
10.70 4.93 44,829 0.66 (3) 5.23 5
10.88 6.99 41,520 0.66 5.02 14
11.15 7.49 41,803 0.67 (3) 4.77 21
10.22 (2.44) 38,566 0.69 4.73 10
10.05 0.77 (1) 35,465 0.71 (2)(3) 4.91 (2) 3 (1)
10.85 19.65 53,935 0.66 (3) 5.29 8
10.85 5.27 47,055 0.65 (3) 5.17 --
10.97 6.53 44,056 0.66 5.01 8
11.15 6.60 53,808 0.64 (3) 4.75 26
10.19 (3.02) 49,059 0.64 (3) 4.83 6
10.03 0.96 (1) 50,317 0.65 (2)(3) 5.11 (2) 10 (1)
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
27
<PAGE>
MORGAN STANLEY DEAN WITTER MULTI-STATE MUNICIPAL SERIES TRUST
CHANGE IN INDEPENDENT ACCOUNTANTS
On July 1, 2000 PricewaterhouseCoopers LLP resigned as independent accountants
of the Fund.
The reports of PricewaterhouseCoopers LLP on the financial statements of the
Fund for the past two fiscal years contained no adverse opinion or disclaimer
of opinion and were not qualified or modified as to uncertainty, audit scope or
accounting principle.
In connection with its audits for the two most recent fiscal years and through
July 1, 2000, there have been no disagreements with PricewaterhouseCoopers LLP
on any matter of accounting principles or practices, financial statement
disclosure, or auditing scope or procedure, which disagreements if not resolved
to the satisfaction of PricewaterhouseCoopers LLP would have caused them to
make reference thereto in their report on the financial statements for such
years.
The Fund, with the approval of its Board of Trustees and its Audit Committee,
engaged Deloitte & Touche LLP as its new independent accountants as of July 1,
2000.
28
<PAGE>
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<PAGE>
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<PAGE>
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<PAGE>
TRUSTEES
Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
Wayne E. Hedien
James F. Higgins
Dr. Manuel H. Johnson
Michael E. Nugent
Philip J. Purcell
John L. Schroeder
OFFICERS
Charles A. Fiumefreddo
Chairman and Chief Executive Officer
Mitchell M. Merin
President
Barry Fink
Vice President, Secretary and General Counsel
James F. Willison
Vice President
Thomas F. Caloia
Treasurer
TRANSFER AGENT
Morgan Stanley Dean Witter Trust FSB
Harborside Financial Center - Plaza Two
Jersey City, New Jersey 07311
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
INVESTMENT MANAGER
Morgan Stanley Dean Witter Advisors Inc.
Two World Trade Center
New York, New York 10048
The financial statements included herein have been taken from the records of
the Fund without examination by the independent accountants and accordingly they
do not express an opinion thereon.
This report is submitted for the general information of shareholders
of the Fund. For more detailed information about the Fund, its officers
and trustees, fees, expenses and other pertinent information, please see
the prospectus of the Fund.
This report is not authorized for distribution to prospective investors
in the Fund unless preceded or accompanied by an effective prospectus.
Read the prospectus carefully before investing.
Morgan Stanley Dean Witter Distributors Inc., member NASD.
MORGAN STANLEY
DEAN WITTER
Multi-State
Municipal Series
Trust
[GRAPHIC OMITTED]
THE ARIZONA SERIES
THE FLORIDA SERIES
THE NEW JERSEY SERIES
THE PENNSYLVANIA SERIES
SEMIANNUAL REPORT
MAY 31, 2000
