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Merrill Lynch Minnesota Municipal Bond Fund
of the Merrill Lynch Multi-State Municipal Series Trust
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Supplement dated July 14, 1995 to the
Statement of Additional Information dated October 21, 1994
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The 1995 Minnesota Legislature has enacted a statement of intent that
interest on obligations of Minnesota governmental units and Indian tribes be
included in net income of individuals, estates and trusts for Minnesota
income tax purposes if a court determines that Minnesota's exemption of such
interest unlawfully discriminates against interstate commerce because
interest on obligations of governmental issuers located in other states is so
included. This provision applies to taxable years that begin during or after
the calendar year in which any such court decision becomes final,
irrespective of the date on which the obligations were issued. The Fund is
not aware of any judicial decision holding that a state's exemption of
interest on its own bonds or those of its political subdivisions or Indian
tribes, but not of interest on the bonds of other states or such states'
political subdivisions or Indian tribes, unlawfully discriminates against
interstate commerce or otherwise contravenes the United States Constitution.
Nevertheless, the Fund cannot predict the likelihood that interest on the
Minnesota bonds held by the Fund would become taxable under this Minnesota
statutory provision.
Code # 16186-0795MN
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