historically provide
higher after-tax yields
As a New Yorker, you live in one of the nation's highest tax states, and these taxes can easily claim well over one-third of your income.
Investing in New York State municipal bonds is one of the few remaining ways to reduce your federal, state and city income taxes and keep more of what you earn. In fact, with tax rates at some of the highest levels in recent years, the value of tax-free investing may be greater than ever now.
It is true that yields on taxable investments are sometimes higher than those on tax-free investments, but after taxes owed are subtracted, the after-tax income from a tax-free investment is often higher. For example, an investor taxed at the top effective marginal federal rate of 39.6% would have to earn an 8.28% yield from a taxable investment just to equal the same after-tax income as a tax-free yield of 5.0%. Even in the 28% federal tax bracket, that taxable investment would have to yield 6.94% to equal a 5.0% tax-free yield. By investing in New York State municipal bonds, the tax saving is even greater, since you won't have to pay state and local taxes. In other words, higher combined federal, state, and city tax rates translate directly into higher taxable equivalent yields.*
The Value Line New York Tax Exempt Trust is designed to offer New Yorkers tax relief with the maximum income exempt from New York State, New York City, and federal personal income taxes while avoiding undue risk to principal. Of course, there is no guarantee that the Trust will achieve its objective. When shares are redeemed, they may be worth more or less than the original cost.
Tax Exempt Trust offers
high quality, professional
management
Not all New York State municipal bonds are alike, and so strict criteria for credit quality can provide a big advantage.
The Value Line New York Tax Exempt Trust's investment adviser is Value Line, Inc., the same widely acclaimed managers that provide investment counseling services to our conservative corporate and institutional clients. The adviser manages the Trust's investments, provides various administrative services and supervises the Trust's daily business affairs. The managers make decisions for the Trust's investors using data primarily from the nation's top independent rating agencies, Standard & Poor's Corporation and Moody's Investors Service, Inc., as well as from their own quality analysis.
The Trust invests primarily in New York State municipal and public authority debt obligations having a maturity of more than one year and which are rated at the time of purchase within the four highest grades assigned by Moody's or S&P. The Trust may also invest in unrated securities if we believe they are of comparable quality to the rated securities in which the Trust may invest.
*The value of tax-free investing depends on an individual's tax bracket and tax situation. Your tax adviser should be consulted to detemine which of the Value Line Funds are best suited to your needs and whether any income you may receive will be subject to the Alternative Minimum Tax. Under normal conditions, the Trust's assets will be invested so that at least 80% of the annual income of the Trust will be exempt from both federal income tax and New York State and City personal income taxes, except during times of adverse market conditions. Capital gains, if any, are taxable. The example shown abov is not representative of an invesment in the Trust and is shown solely for comparative purposes. Past performance is no guarantee of future results.
