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For the calendar year 2008, all income dividends received from investments in all classes of Delaware Investments® national tax-free funds, with the exception of Delaware Tax-Free USA Fund, were exempt from federal income tax. Dividends that are exempt from federal income tax may or may not be exempt under the laws of a particular state or local taxing authority. Generally, however, income from bonds issued by municipalities in a particular state is not taxable in that state. Most states do not grant tax-free treatment to interest from municipal securities of other states. We recommend that shareholders consult their tax advisors regarding laws in their state.
Listed here, on a state-by-state basis, is the percentage of interest income earned on municipal obligations of issuers in each such state during the calendar year 2008. The percentages are the same for all share classes of each fund.
A portion of the income paid to Delaware Investments national tax-free funds shareholders is subject to the federal alternative minimum tax (AMT) that applies to some investors. See Tax-free funds and AMT — national tax-free funds for more information.
Percentage of interest income from municipal obligations
| State |
Tax-Free Money Fund* |
Tax-Free USA Intermediate Fund |
Tax-Free USA Fund |
National High-Yield Municipal Bond Fund |
| Alabama |
— |
1.25% |
1.23% |
0.71% |
| Alaska |
— |
— |
— |
— |
| Arizona |
3.64% |
2.42% |
0.15% |
1.70% |
| Arkansas |
— |
— |
— |
— |
| California |
0.46% |
6.91% |
6.72% |
3.47% |
| Colorado |
2.49% |
0.18% |
1.17% |
0.82% |
| Connecticut |
5.59% |
0.69% |
0.71% |
— |
| District of Columbia |
— |
0.30% |
— |
— |
| Delaware |
1.55% |
— |
— |
— |
| Florida |
0.04% |
2.87% |
12.13% |
1.88% |
| Georgia |
2.91% |
6.78% |
4.24% |
5.26% |
| Hawaii |
— |
— |
— |
— |
| Idaho |
— |
0.58% |
— |
— |
| Illinois |
— |
5.47% |
2.83% |
6.26% |
| Indiana |
4.59% |
0.64% |
1.94% |
2.84% |
| Iowa |
— |
0.68% |
0.48% |
— |
| Kansas |
— |
0.45% |
— |
— |
| Kentucky |
1.23% |
— |
0.02% |
0.64% |
| Louisiana |
1.60% |
0.13% |
1.26% |
3.56% |
| Maine |
— |
— |
— |
1.42% |
| Maryland |
— |
2.89% |
2.00% |
4.32% |
| Massachusetts |
5.68% |
4.59% |
0.89% |
3.21% |
| Michigan |
— |
3.42% |
3.14% |
— |
| Minnesota |
1.38% |
3.31% |
1.87% |
7.25% |
| Mississippi |
1.23% |
0.28% |
1.01% |
3.44% |
| Missouri |
2.10% |
1.59% |
6.58% |
5.51% |
| Montana |
— |
0.31% |
— |
— |
| Nebraska |
— |
— |
— |
— |
| Nevada |
— |
— |
0.58% |
1.13% |
| New Hampshire |
0.03% |
0.34% |
0.56% |
0.01% |
| New Jersey |
— |
1.43% |
3.83% |
4.92% |
| New Mexico |
— |
0.15% |
0.29% |
1.38% |
| New York |
0.47% |
7.73% |
6.72% |
4.69% |
| North Carolina |
2.41% |
4.19% |
1.45% |
2.33% |
| North Dakota |
— |
0.27% |
— |
— |
| Ohio |
4.97% |
5.60% |
2.87% |
4.68% |
| Oklahoma |
— |
0.44% |
3.77% |
1.76% |
| Oregon |
— |
1.61% |
2.96% |
0.89% |
| Pennsylvania |
39.95% |
7.51% |
2.43% |
11.75% |
| Puerto Rico |
— |
5.13% |
8.29% |
0.78% |
| Rhode Island |
1.14% |
— |
— |
— |
| South Carolina |
0.46% |
0.90% |
0.73% |
— |
| South Dakota |
— |
— |
— |
— |
| Tennessee |
10.07% |
1.26% |
1.15% |
3.77% |
| Texas |
5.37% |
12.07% |
8.07% |
4.60% |
| Utah |
— |
— |
0.31% |
1.22% |
| Vermont |
— |
— |
0.01% |
— |
| Virginia |
0.64% |
2.95% |
3.59% |
2.56% |
| Washington |
— |
2.26% |
1.12% |
— |
| West Virginia |
— |
— |
1.20% |
— |
| Wisconsin |
— |
— |
0.38% |
— |
| Wyoming |
— |
0.42% |
0.66% |
1.24% |
| Guam |
— |
— |
— |
— |
| U.S. Virgin Islands |
— |
— |
0.66% |
— |
*An investment in the Fund is not a deposit of any bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.
Delaware Investments money market funds are participating in the U.S. Treasury's Temporary Guaranty Program for Money Market Funds.
The information contained in the Tax Center is not intended to be legal or tax advice. If you need assistance preparing your tax return, please consult a tax advisor.
Information may be abridged and therefore incomplete. Any discussion pertaining to taxes in this communication (including attachments) may be part of the promotion or marketing of a product. As provided for in government regulations, advice (if any) related to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code. Individuals should seek advice based on their own particular circumstances from an independent tax advisor.
Investors should consider the investment objectives, risks and charges and expenses of a Fund carefully before investing. Each Fund's prospectus contains this and other important information about the Fund. Please request a prospectus by calling 800 523-1918 or by visiting the prospectuses & shareholder reports section of www.delawareinvestments.com. Read it carefully before investing or sending money. Delaware Distributors, L.P. is the distributor for all open-end investment companies within the Delaware Investments Family of Funds.
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