California Tax-Free Bond Fund_CAB_F80-051
0000795384falseN-CSRST. ROWE PRICE STATE TAX-FREE FUNDS, INC.N-1A2024-08-310000795384trp:C000194849Member2024-03-012024-08-3100007953842024-03-012024-08-310000795384trp:C000194849Member2024-08-310000795384trp:C000194849Membertrp:AAARatedCTIMember2024-08-310000795384trp:C000194849Membertrp:AARatedCTIMember2024-08-310000795384trp:C000194849Membertrp:ARatedCTIMember2024-08-310000795384trp:C000194849Membertrp:BBBRatedCTIMember2024-08-310000795384trp:C000194849Membertrp:BBRatedandBelowCTIMember2024-08-310000795384trp:C000194849Membertrp:NotRatedCTIMember2024-08-310000795384trp:C000194849Membertrp:OtherHoldingsGroupingCTIMember2024-08-310000795384trp:C000194849Membertrp:HospitalRevenueSectorMember2024-08-310000795384trp:C000194849Membertrp:GroundTransportationRevenueSectorMember2024-08-310000795384trp:C000194849Membertrp:EducationalRevenueSectorMember2024-08-310000795384trp:C000194849Membertrp:HousingFinanceRevenueSectorMember2024-08-310000795384trp:C000194849Membertrp:GeneralObligationsMinusLocalSectorMember2024-08-310000795384trp:C000194849Membertrp:LeaseRevenueSectorMember2024-08-310000795384trp:C000194849Membertrp:DedicatedTaxRevenueSectorMember2024-08-310000795384trp:C000194849Membertrp:WaterSewerRevenueSectorMember2024-08-310000795384trp:C000194849Membertrp:GeneralObligationsMinusStateSectorMember2024-08-310000795384trp:C000194849Membertrp:OtherSectorMember2024-08-310000795384trp:C000194850Member2024-03-012024-08-310000795384trp:C000194850Member2024-08-310000795384trp:C000194850Membertrp:AAARatedCTIMember2024-08-310000795384trp:C000194850Membertrp:AARatedCTIMember2024-08-310000795384trp:C000194850Membertrp:ARatedCTIMember2024-08-310000795384trp:C000194850Membertrp:BBBRatedCTIMember2024-08-310000795384trp:C000194850Membertrp:BBRatedandBelowCTIMember2024-08-310000795384trp:C000194850Membertrp:NotRatedCTIMember2024-08-310000795384trp:C000194850Membertrp:OtherHoldingsGroupingCTIMember2024-08-310000795384trp:C000194850Membertrp:HospitalRevenueSectorMember2024-08-310000795384trp:C000194850Membertrp:GroundTransportationRevenueSectorMember2024-08-310000795384trp:C000194850Membertrp:EducationalRevenueSectorMember2024-08-310000795384trp:C000194850Membertrp:HousingFinanceRevenueSectorMember2024-08-310000795384trp:C000194850Membertrp:GeneralObligationsMinusLocalSectorMember2024-08-310000795384trp:C000194850Membertrp:LeaseRevenueSectorMember2024-08-310000795384trp:C000194850Membertrp:DedicatedTaxRevenueSectorMember2024-08-310000795384trp:C000194850Membertrp:WaterSewerRevenueSectorMember2024-08-310000795384trp:C000194850Membertrp:GeneralObligationsMinusStateSectorMember2024-08-310000795384trp:C000194850Membertrp:OtherSectorMember2024-08-31iso4217:USDxbrli:sharesiso4217:USDxbrli:sharesxbrli:pureutr:Dtrp:Holding
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-04521
T. Rowe Price State Tax-Free Funds, Inc.
(Exact name of registrant as specified in charter)
100 East Pratt Street, Baltimore, MD 21202
(Address of principal executive offices)
David Oestreicher
100 East Pratt Street, Baltimore, MD 21202
(Name and address of agent for service)
Registrant’s telephone number, including area code: (410) 345-2000
Date of fiscal year end: February 28
Date of reporting period: August 31, 2024
Item 1. Reports to Shareholders
(a) Report pursuant to Rule 30e-1
Semi-Annual Shareholder Report
August 31, 2024
California Tax-Free Bond Fund
This semi-annual shareholder report contains important information about California Tax-Free Bond Fund (the "fund") for the period of March 1, 2024 to August 31, 2024. You can find the fund’s prospectus, financial information on Form N‑CSR (which includes required tax information for dividends), holdings, proxy voting information, and other information atwww.troweprice.com/prospectus. You can also request this information without charge by contacting T. Rowe Price at 1‑800‑638‑5660 or info@troweprice.com or contacting your intermediary.
What were the fund costs for the last six months? (based on a hypothetical $10,000 investment)
|
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment |
California Tax-Free Bond Fund - Investor Class |
$30 |
0.58% |
What are some fund statistics?
Total Net Assets (000s) |
$772,896 |
Number of Portfolio Holdings |
401 |
|
|
Portfolio Turnover Rate |
5.3% |
What did the fund invest in?
Credit Quality Allocation*(as a % of Net Assets)
AAA Rated |
6.5% |
AA Rated |
39.8 |
A Rated |
26.8 |
BBB Rated |
9.9 |
BB Rated and Below |
3.2 |
Not Rated |
13.3 |
Reserves |
0.5 |
*Credit ratings for the securities held in the Fund are provided by Moody’s, Standard & Poor’s, and Fitch and are converted to the Standard & Poor’s nomenclature. A rating of AAA represents the highest-rated securities, and a rating of D represents the lowest rated securities. If the ratings agencies differ, the highest rating is applied to the security. If a rating is not available, the security is classified as Not Rated. The rating of the underlying investment vehicle is used to determine the creditworthiness of credit default swaps and sovereign securities. The Fund is not rated by any agency.
Industry Allocation (as a % of Net Assets)
Health Care |
20.3% |
Transportation |
17.4 |
Education |
11.2 |
Housing |
9.1 |
General Obligations - Local |
8.0 |
Leasing |
4.0 |
Special Tax |
3.3 |
Water & Sewer |
3.0 |
General Obligations - State |
2.7 |
Other |
21.0 |
If you invest directly with T. Rowe Price, you can elect to receive future shareholder reports or other important documents through electronic delivery by enrolling at www.troweprice.com/paperless. If you invest through a financial intermediary such as an investment advisor, a bank, retirement plan sponsor or a brokerage firm, please contact that organization and ask if it can provide electronic delivery.
California Tax-Free Bond Fund
Investor Class (PRXCX)
T. Rowe Price Investment Services, Inc.
100 East Pratt Street
Baltimore, MD 21202
Semi-Annual Shareholder Report
August 31, 2024
California Tax-Free Bond Fund
This semi-annual shareholder report contains important information about California Tax-Free Bond Fund (the "fund") for the period of March 1, 2024 to August 31, 2024. You can find the fund’s prospectus, financial information on Form N‑CSR (which includes required tax information for dividends), holdings, proxy voting information, and other information atwww.troweprice.com/prospectus. You can also request this information without charge by contacting T. Rowe Price at 1‑800‑638‑5660 or info@troweprice.com or contacting your intermediary.
What were the fund costs for the last six months? (based on a hypothetical $10,000 investment)
|
Costs of a $10,000 investment |
Costs paid as a percentage of a $10,000 investment |
California Tax-Free Bond Fund - I Class |
$22 |
0.43% |
What are some fund statistics?
Total Net Assets (000s) |
$772,896 |
Number of Portfolio Holdings |
401 |
|
|
Portfolio Turnover Rate |
5.3% |
What did the fund invest in?
Credit Quality Allocation*(as a % of Net Assets)
AAA Rated |
6.5% |
AA Rated |
39.8 |
A Rated |
26.8 |
BBB Rated |
9.9 |
BB Rated and Below |
3.2 |
Not Rated |
13.3 |
Reserves |
0.5 |
*Credit ratings for the securities held in the Fund are provided by Moody’s, Standard & Poor’s, and Fitch and are converted to the Standard & Poor’s nomenclature. A rating of AAA represents the highest-rated securities, and a rating of D represents the lowest rated securities. If the ratings agencies differ, the highest rating is applied to the security. If a rating is not available, the security is classified as Not Rated. The rating of the underlying investment vehicle is used to determine the creditworthiness of credit default swaps and sovereign securities. The Fund is not rated by any agency.
Industry Allocation (as a % of Net Assets)
Health Care |
20.3% |
Transportation |
17.4 |
Education |
11.2 |
Housing |
9.1 |
General Obligations - Local |
8.0 |
Leasing |
4.0 |
Special Tax |
3.3 |
Water & Sewer |
3.0 |
General Obligations - State |
2.7 |
Other |
21.0 |
If you invest directly with T. Rowe Price, you can elect to receive future shareholder reports or other important documents through electronic delivery by enrolling at www.troweprice.com/paperless. If you invest through a financial intermediary such as an investment advisor, a bank, retirement plan sponsor or a brokerage firm, please contact that organization and ask if it can provide electronic delivery.
California Tax-Free Bond Fund
I Class (TCFEX)
T. Rowe Price Investment Services, Inc.
100 East Pratt Street
Baltimore, MD 21202
Item 1. (b) Notice pursuant to Rule 30e-3.
Not applicable.
Item 2. Code of Ethics.
A code of ethics, as defined in Item 2 of Form N-CSR, applicable to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions is filed as an exhibit to the registrant’s annual Form N-CSR. No substantive amendments were approved or waivers were granted to this code of ethics during the registrant’s most recent fiscal half-year.
Item 3. Audit Committee Financial Expert.
Disclosure required in registrant’s annual Form N-CSR.
Item 4. Principal Accountant Fees and Services.
Disclosure required in registrant’s annual Form N-CSR.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
(a) Not applicable. The complete schedule of investments is included in Item 7 of this Form N-CSR.
(b) Not applicable.
Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies.
(a – b) Report pursuant to Regulation S-X.
Financial
Highlights
Portfolio
of
Investments
Financial
Statements
and
Notes
Additional
Fund
Information
Financial
Statements
and
Other
Information
For
more
insights
from
T.
Rowe
Price
investment
professionals,
go
to
troweprice.com
.
T.
ROWE
PRICE
PRXCX
California
Tax-Free
Bond
Fund
TCFEX
California
Tax-Free
Bond
Fund–
.
I Class
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
(Unaudited)
For
a
share
outstanding
throughout
each
period
Investor
Class
6
Months
.
Ended
8/31/24
..
Year
..
..
Ended
.
2/29/24
2/28/23
2/28/22
2/28/21
2/29/20
NET
ASSET
VALUE
Beginning
of
period
$
10.83
$
10.52
$
11.49
$
11.80
$
12.04
$
11.34
Investment
activities
Net
investment
income
(1)(2)
0.18
0.34
0.31
0.30
0.32
0.34
Net
realized
and
unrealized
gain/
loss
0.10
0.31
(0.97)
(0.27)
(0.23)
0.70
Total
from
investment
activities
0.28
0.65
(0.66)
0.03
0.09
1.04
Distributions
Net
investment
income
(0.18)
(0.34)
(0.30)
(0.30)
(0.32)
(0.34)
Net
realized
gain
—
—
(0.01)
(0.04)
(0.01)
—
Total
distributions
(0.18)
(0.34)
(0.31)
(0.34)
(0.33)
(0.34)
NET
ASSET
VALUE
End
of
period
$
10.93
$
10.83
$
10.52
$
11.49
$
11.80
$
12.04
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
(Unaudited)
For
a
share
outstanding
throughout
each
period
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Investor
Class
6
Months
.
Ended
8/31/24
..
Year
..
..
Ended
.
2/29/24
2/28/23
2/28/22
2/28/21
2/29/20
Ratios/Supplemental
Data
Total
return
(2)(3)
2.61%
6.26%
(5.71)%
0.13%
0.80%
9.32%
Ratios
to
average
net
assets:
(2)
Gross
expenses
before
waivers/
payments
by
Price
Associates
0.58%
(4)
0.57%
0.58%
0.53%
0.53%
0.53%
Net
expenses
after
waivers/
payments
by
Price
Associates
0.58%
(4)
0.57%
0.58%
0.53%
0.53%
0.53%
Net
investment
income
3.30%
(4)
3.21%
2.87%
2.48%
2.74%
2.93%
Portfolio
turnover
rate
5.3%
12.0%
28.3%
8.3%
16.1%
8.3%
Net
assets,
end
of
period
(in
thousands)
$390,425
$382,476
$349,156
$455,003
$562,592
$623,994
0%
0%
0%
0%
0%
0%
(1)
Per
share
amounts
calculated
using
average
shares
outstanding
method.
(2)
Includes
the
impact
of
expense-related
arrangements
with
Price
Associates.
(3)
Total
return
reflects
the
rate
that
an
investor
would
have
earned
on
an
investment
in
the
fund
during
each
period,
assuming
reinvestment
of
all
distributions,
and
payment
of
no
redemption
or
account
fees,
if
applicable.
Total
return
is
not
annualized
for
periods
less
than
one
year.
(4)
Annualized
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
(Unaudited)
For
a
share
outstanding
throughout
each
period
I
Class
6
Months
.
Ended
8/31/24
..
Year
..
..
Ended
.
2/29/24
2/28/23
2/28/22
2/28/21
2/29/20
NET
ASSET
VALUE
Beginning
of
period
$
10.82
$
10.51
$
11.49
$
11.79
$
12.03
$
11.34
Investment
activities
Net
investment
income
(1)(2)
0.19
0.35
0.32
0.31
0.33
0.35
Net
realized
and
unrealized
gain/
loss
0.10
0.31
(0.97)
(0.26)
(0.23)
0.69
Total
from
investment
activities
0.29
0.66
(0.65)
0.05
0.10
1.04
Distributions
Net
investment
income
(0.19)
(0.35)
(0.32)
(0.31)
(0.33)
(0.35)
Net
realized
gain
—
—
(0.01)
(0.04)
(0.01)
—
Total
distributions
(0.19)
(0.35)
(0.33)
(0.35)
(0.34)
(0.35)
NET
ASSET
VALUE
End
of
period
$
10.92
$
10.82
$
10.51
$
11.49
$
11.79
$
12.03
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
(Unaudited)
For
a
share
outstanding
throughout
each
period
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
I
Class
6
Months
.
Ended
8/31/24
..
Year
..
..
Ended
.
2/29/24
2/28/23
2/28/22
2/28/21
2/29/20
Ratios/Supplemental
Data
Total
return
(2)(3)
2.69%
6.40%
(5.66)%
0.33%
0.90%
9.34%
Ratios
to
average
net
assets:
(2)
Gross
expenses
before
waivers/
payments
by
Price
Associates
0.44%
(4)
0.44%
0.45%
0.43%
0.43%
0.43%
Net
expenses
after
waivers/
payments
by
Price
Associates
0.43%
(4)
0.44%
0.44%
0.43%
0.43%
0.43%
Net
investment
income
3.44%
(4)
3.35%
3.01%
2.59%
2.83%
3.02%
Portfolio
turnover
rate
5.3%
12.0%
28.3%
8.3%
16.1%
8.3%
Net
assets,
end
of
period
(in
thousands)
$382,471
$361,111
$310,843
$245,613
$134,569
$123,278
0%
0%
0%
0%
0%
0%
(1)
Per
share
amounts
calculated
using
average
shares
outstanding
method.
(2)
Includes
the
impact
of
expense-related
arrangements
with
Price
Associates.
(3)
Total
return
reflects
the
rate
that
an
investor
would
have
earned
on
an
investment
in
the
fund
during
each
period,
assuming
reinvestment
of
all
distributions,
and
payment
of
no
redemption
or
account
fees,
if
applicable.
Total
return
is
not
annualized
for
periods
less
than
one
year.
(4)
Annualized
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
August
31,
2024
(Unaudited)
Portfolio
of
Investments
‡
Par
$
Value
(Amounts
in
000s)
‡
MUNICIPAL
SECURITIES 99.1%
CALIFORNIA
95.7%
Adelanto
Public
Utility
Auth.,
Utility
System
Project,
Series A,
5.00%,
7/1/39 (1)
2,000
2,098
Alameda
Corridor
Transportation
Auth.,
Series C,
5.00%,
10/1/52 (1)
1,000
1,077
Bay
Area
Toll
Auth.,
Series A,
VRDN,
3.85%,
4/1/55
1,500
1,500
Bay
Area
Toll
Auth.,
Series B,
VRDN,
3.60%,
4/1/55
600
600
Bay
Area
Toll
Auth.,
Series S-8,
3.00%,
4/1/54 (2)
5,000
3,968
Burbank-Glendale-Pasadena
Airport
Auth.
Brick
Campaign,
Series B,
4.50%,
7/1/54 (1)(3)
4,000
4,020
California,
GO,
4.25%,
9/1/52
3,510
3,570
California,
Series CU,
GO,
4.75%,
12/1/42
2,250
2,353
California,
Series CU,
GO,
4.85%,
12/1/46
1,230
1,297
California
Community
Choice
Fin.
Auth.,
Green
Bond
Energy
Project,
VRDN,
5.00%,
12/1/53
(Tender
8/1/29)
2,400
2,540
California
Community
Choice
Fin.
Auth.,
Green
Bond
Energy
Project,
Series 2023-F,
VRDN,
5.50%,
10/1/54
(Tender
11/1/30)
3,850
4,280
California
Community
Choice
Fin.
Auth.,
Green
Bond
Energy
Project,
Series B-1,
VRDN,
4.00%,
2/1/52
(Tender
8/1/31)
6,000
6,099
California
Community
Choice
Fin.
Auth.,
Green
Bond
Energy
Project,
Series E-1,
VRDN,
5.00%,
2/1/54
(Tender
3/1/31)
5,500
5,907
California
Community
Choice
Fin.
Auth.,
Green
Bond
Energy
Project,
Series G,
VRDN,
5.25%,
11/1/54
(Tender
4/1/30)
3,000
3,234
California
Community
Housing
Agency,
5.00%,
8/1/49 (4)
2,000
1,921
California
County
Tobacco
Securitization
Agency,
Series B-1,
5.00%,
6/1/49
160
164
California
Dept.
of
Water
Resources,
Water
System,
Series AS,
5.00%,
12/1/29
(Prerefunded
12/1/24) (5)
5
5
California
EFA,
Series A,
4.00%,
12/1/39
1,245
1,227
California
EFA,
Series A,
5.00%,
12/1/34
1,000
1,055
California
EFA,
Series A,
5.00%,
12/1/44
3,500
3,597
California
EFA,
Chapman
Univ.,
5.00%,
4/1/36
4,260
4,291
California
EFA,
Univ.
of
San
Francisco,
Series A,
5.00%,
10/1/43
4,500
4,715
California
Enterprise
Dev.
Auth.,
Student
Housing,
Series A,
5.00%,
8/1/35
400
414
California
Enterprise
Dev.
Auth.,
Student
Housing,
Series A,
5.00%,
1/15/39
400
434
California
Enterprise
Dev.
Auth.,
Student
Housing,
Series A,
5.00%,
8/1/40
500
516
California
Enterprise
Dev.
Auth.,
Student
Housing,
Series A,
5.00%,
1/15/45
1,000
1,053
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
Par
$
Value
(Amounts
in
000s)
California
Enterprise
Dev.
Auth.,
Student
Housing,
Series A,
5.00%,
8/1/45
550
565
California
Enterprise
Dev.
Auth.,
Student
Housing,
Series A,
5.00%,
8/1/50
550
564
California
Enterprise
Dev.
Auth.,
Student
Housing,
Series A,
5.00%,
8/1/55
825
840
California
Enterprise
Dev.
Auth.,Riverside
County
Mead
Valley
Wellness
Village
Project,
Series A,
5.25%,
11/1/54
7,000
7,869
California
HFFA,
Cedars-Sinai
Health
System,
Series A,
3.00%,
8/15/51 (2)
3,250
2,729
California
HFFA,
Cedars-Sinai
Health
System,
Series A,
3.00%,
8/15/51
2,000
1,597
California
HFFA,
Cedars-Sinai
Health
System,
Series A,
4.00%,
8/15/48
3,090
3,088
California
HFFA,
Cedars-Sinai
Medical
Center,
5.00%,
11/15/28
560
575
California
HFFA,
Cedars-Sinai
Medical
Center,
5.00%,
11/15/29
880
903
California
HFFA,
Kaiser
Permanente,
Series A-2,
5.00%,
11/1/47
5,000
6,059
California
HFFA,
Lucile
Salter
Packard
Children's
Hosp.
at
Stanford,
4.00%,
5/15/51
9,000
8,878
California
HFFA,
Northern
California
Presbyterian
Homes
&
Services,
5.00%,
7/1/34
700
712
California
HFFA,
Northern
California
Presbyterian
Homes
&
Services,
5.00%,
7/1/39
1,300
1,318
California
HFFA,
Northern
California
Presbyterian
Homes
&
Services,
5.00%,
7/1/44
1,400
1,416
California
HFFA,
Providence
Healthcare
&
Services,
Unrefunded
Balance,
Series A,
5.00%,
10/1/38
1,410
1,411
California
HFFA,
Stanford
Health
Care,
Series A,
4.00%,
8/15/50
2,120
2,085
California
HFFA,
Sutter
Health,
Series A,
5.00%,
11/15/35
1,000
1,051
California
HFFA,
Sutter
Health,
Series A,
5.00%,
11/15/38
2,000
2,091
California
HFFA,
Sutter
Health,
Series A,
5.00%,
11/15/48
4,700
4,857
California
HFFA,
Sutter
Health,
Series B,
5.00%,
11/15/46
(Prerefunded
11/15/26) (5)
1,020
1,075
California
HFFA,
Sutter
Health,
Unrefunded
Balance,
Series B,
5.00%,
11/15/46
1,480
1,518
California
Housing
Fin.,
Series 2019-1,
Class
A,
4.25%,
1/15/35
1,411
1,474
California
Housing
Fin.,
Series 2019-2,
Class
A,
4.00%,
3/20/33
2,722
2,801
California
Housing
Fin.,
Series 2023-1,
Class
A,
4.375%,
9/20/36
2,305
2,433
California
Housing
Fin.,
Shoreview
Apartments,
Series T,
4.10%,
7/1/40
3,325
3,374
California
Infrastructure
&
Economic
Dev.
Bank,
Series B,
4.125%,
11/1/52
2,835
2,783
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
Par
$
Value
(Amounts
in
000s)
California
Infrastructure
&
Economic
Dev.
Bank,
Series B,
FRN,
100%
of
MUNIPSA
+
0.70%,
3.62%,
12/1/50
(Tender
6/1/26)
1,175
1,175
California
Infrastructure
&
Economic
Dev.
Bank,
Academy
of
Sciences,
Series A,
3.25%,
8/1/29
2,800
2,811
California
Infrastructure
&
Economic
Dev.
Bank,
Green
Bond,
4.00%,
10/1/44
5,250
5,375
California
Infrastructure
&
Economic
Dev.
Bank,
Green
Bond-
Climate
Bond
Certified,
5.00%,
8/1/49
3,750
3,971
California
Infrastructure
&
Economic
Dev.
Bank,
Los
Angeles
Museum
of
National
History,
3.00%,
7/1/50
6,750
5,340
California
Municipal
Fin.
Auth.,
Bowles
Hall
Foundation,
Series A,
5.00%,
6/1/35
300
303
California
Municipal
Fin.
Auth.,
Bowles
Hall
Foundation,
Series A,
5.00%,
6/1/50
4,830
4,849
California
Municipal
Fin.
Auth.,
California
Baptist
Univ.,
Series A,
5.00%,
11/1/36 (4)
1,920
1,953
California
Municipal
Fin.
Auth.,
Caritas
Affordable
Housing,
Series A,
5.25%,
8/15/39
500
500
California
Municipal
Fin.
Auth.,
Caritas
Affordable
Housing,
Series A,
5.25%,
8/15/49
1,425
1,426
California
Municipal
Fin.
Auth.,
Caritas
Project,
Series A,
4.00%,
8/15/42
635
632
California
Municipal
Fin.
Auth.,
Caritas
Project,
Series A,
5.00%,
8/15/54 (6)
1,800
1,935
California
Municipal
Fin.
Auth.,
Caritas
Project,
Series A,
5.00%,
8/15/59 (6)
2,600
2,773
California
Municipal
Fin.
Auth.,
Caritas
Project,
Series A,
5.25%,
8/15/53
1,665
1,763
California
Municipal
Fin.
Auth.,
Caritas
Project,
Series B,
3.00%,
8/15/31
120
116
California
Municipal
Fin.
Auth.,
Caritas
Project,
Series B,
4.00%,
8/15/41
295
287
California
Municipal
Fin.
Auth.,
Caritas
Project,
Series B,
4.00%,
8/15/51
435
394
California
Municipal
Fin.
Auth.,
Caritas
Project,
Series B,
4.00%,
8/15/56
330
293
California
Municipal
Fin.
Auth.,
Channing
House
Project,
Series A,
5.00%,
5/15/35
1,000
1,046
California
Municipal
Fin.
Auth.,
Channing
House
Project,
Series B,
5.00%,
5/15/47
2,200
2,261
California
Municipal
Fin.
Auth.,
CHF-Davis
I,
LLC-West
Village,
5.00%,
5/15/36 (2)
2,000
2,120
California
Municipal
Fin.
Auth.,
Claremont
College
Project,
Series A,
5.00%,
7/1/40 (4)
1,515
1,502
California
Municipal
Fin.
Auth.,
Claremont
College
Project,
Series A,
5.00%,
7/1/52 (4)
2,075
1,979
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
Par
$
Value
(Amounts
in
000s)
California
Municipal
Fin.
Auth.,
Community
Health
System,
Series A,
4.00%,
2/1/51
3,900
3,542
California
Municipal
Fin.
Auth.,
Eisnhower
Medical
Center,
Series A,
5.00%,
7/1/33
1,000
1,035
California
Municipal
Fin.
Auth.,
Eisnhower
Medical
Center,
Series A,
5.00%,
7/1/36
2,550
2,619
California
Municipal
Fin.
Auth.,
Green
Bond-Orchard
Park
Student,
4.00%,
5/15/46 (2)
1,750
1,722
California
Municipal
Fin.
Auth.,
Institute
on
Aging
Project,
5.00%,
8/15/36
365
382
California
Municipal
Fin.
Auth.,
Institute
on
Aging
Project,
5.00%,
8/15/37
315
328
California
Municipal
Fin.
Auth.,
John
Adams
Academies-Lincoln
Project,
Series A,
4.00%,
10/1/29 (4)
415
408
California
Municipal
Fin.
Auth.,
John
Adams
Academies-Lincoln
Project,
Series A,
5.00%,
10/1/39 (4)
900
904
California
Municipal
Fin.
Auth.,
John
Adams
Academies-Lincoln
Project,
Series A,
5.00%,
10/1/49 (4)
1,000
971
California
Municipal
Fin.
Auth.,
John
Adams
Academies-Lincoln
Project,
Series A,
5.00%,
10/1/57 (4)
1,650
1,571
California
Municipal
Fin.
Auth.,
LINXS
APM
Project,
4.00%,
12/31/47 (1)(3)
2,845
2,724
California
Municipal
Fin.
Auth.,
LINXS
APM
Project,
Series A,
4.00%,
12/31/47 (3)
3,000
2,760
California
Municipal
Fin.
Auth.,
LINXS
APM
Project,
Series A,
5.00%,
12/31/38 (3)
1,500
1,542
California
Municipal
Fin.
Auth.,
LINXS
APM
Project,
Series A,
5.00%,
12/31/43 (3)
5,500
5,601
California
Municipal
Fin.
Auth.,
LINXS
APM
Project,
Series A,
5.00%,
12/31/47 (3)
2,830
2,866
California
Municipal
Fin.
Auth.,
MT
San
Antonio
Gardens
Project,
5.00%,
11/15/39
1,700
1,737
California
Municipal
Fin.
Auth.,
MT
San
Antonio
Gardens
Project,
5.00%,
11/15/49
3,875
3,859
California
Municipal
Fin.
Auth.,
MT
San
Antonio
Gardens
Project,
Series A,
4.00%,
11/15/52
1,000
837
California
Municipal
Fin.
Auth.,
MT
San
Antonio
Gardens
Project,
Series A,
4.00%,
11/15/56
1,100
901
California
Municipal
Fin.
Auth.,
National
Univ.,
Series A,
5.00%,
4/1/29
1,045
1,137
California
Municipal
Fin.
Auth.,
National
Univ.,
Series A,
5.00%,
4/1/30
1,245
1,352
California
Municipal
Fin.
Auth.,
National
Univ.,
Series A,
5.00%,
4/1/32
1,035
1,118
California
Municipal
Fin.
Auth.,
National
Univ.,
Series A,
5.00%,
4/1/40
1,000
1,059
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
Par
$
Value
(Amounts
in
000s)
California
Municipal
Fin.
Auth.,
National
Univ.,
Series A,
5.00%,
4/1/41
3,000
3,168
California
Municipal
Fin.
Auth.,
Orange
County
Civic
CTR
Infrastructure,
Series A,
5.00%,
6/1/43
1,950
2,058
California
Municipal
Fin.
Auth.,
Paradise
Valley
Estates
Project,
Series A,
5.00%,
1/1/30
510
547
California
Municipal
Fin.
Auth.,
Paradise
Valley
Estates
Project,
Series A,
5.00%,
1/1/31
375
402
California
Municipal
Fin.
Auth.,
Paradise
Valley
Estates
Project,
Series A,
5.00%,
1/1/32
350
374
California
Municipal
Fin.
Auth.,
Republic
Services,
Series A,
VRDN,
4.00%,
7/1/41
(Tender
10/1/24) (3)
2,800
2,801
California
Municipal
Fin.
Auth.,
Retirement
Housing
Foundation,
Series A,
5.00%,
11/15/26 (7)
950
1,000
California
Municipal
Fin.
Auth.,
Retirement
Housing
Foundation,
Series A,
5.00%,
11/15/28 (7)
1,005
1,105
California
Municipal
Fin.
Auth.,
Retirement
Housing
Foundation,
Series A,
5.00%,
11/15/29 (7)
780
873
California
Municipal
Fin.
Auth.,
Retirement
Housing
Foundation,
Series A,
5.00%,
11/15/31 (7)
1,000
1,151
California
Municipal
Fin.
Auth.,
Retirement
Housing
Foundation,
Series A,
5.00%,
11/15/32 (7)
1,025
1,196
California
Municipal
Fin.
Auth.,
Samuel
Merritt
Univ.,
5.25%,
6/1/53
3,775
4,119
California
Municipal
Fin.
Auth.,
Terry
Manor
Apartments,
Series 2024-02FN,
4.20%,
8/1/40
6,000
6,102
California
Municipal
Fin.
Auth.,
UCR
North
Dist.
Phase
1
Student,
5.00%,
5/15/33
1,000
1,076
California
Municipal
Fin.
Auth.,
Univ.
of
San
Diego,
Series A,
5.00%,
10/1/49
4,500
4,711
California
Municipal
Fin.
Auth.,
West
Village,
5.00%,
5/15/37
3,440
3,620
California
Municipal
Fin.
Auth.,
West
Village,
5.00%,
5/15/48
4,025
4,134
California
PFA,
Enso
Village
Project,
5.00%,
11/15/46 (4)
500
475
California
PFA,
Enso
Village
Project,
5.00%,
11/15/51 (4)
1,000
925
California
PFA,
Enso
Village
Project,
5.00%,
11/15/56 (4)
1,000
911
California
PFA,
Henry
Mayo
Newhall
Hosp.,
5.00%,
10/15/32
500
511
California
PFA,
Henry
Mayo
Newhall
Hosp.,
5.00%,
10/15/33
500
511
California
PFA,
Henry
Mayo
Newhall
Hosp.,
5.00%,
10/15/37
1,000
1,017
California
PFA,
Henry
Mayo
Newhall
Hosp.,
5.00%,
10/15/47
3,500
3,517
California
PFA,
Hoag
Memorial
Hosp.,
Series A,
4.00%,
7/15/51
5,000
4,917
California
Public
Works
Board,
Series B,
4.00%,
5/1/40
750
767
California
Public
Works
Board,
Series B,
4.00%,
5/1/41
1,000
1,017
California
School
Fin.
Auth.,
Aspire
Public
School,
5.00%,
8/1/41
(Prerefunded
8/1/25) (4)(5)
175
179
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
Par
$
Value
(Amounts
in
000s)
California
School
Fin.
Auth.,
Classical
Academies,
Series A,
5.00%,
10/1/52 (4)
2,000
2,042
California
School
Fin.
Auth.,
John
Adams
Academies,
Series A,
5.00%,
7/1/52 (4)
600
586
California
School
Fin.
Auth.,
Kipp
Socal
Public
School,
Series A,
4.00%,
7/1/50 (4)
1,135
1,054
California
School
Fin.
Auth.,
Kipp
Socal
Public
School,
Series A,
5.00%,
7/1/39 (4)
2,000
2,091
California
School
Fin.
Auth.,
Kipp
Socal
Public
School,
Series A,
5.00%,
7/1/49 (4)
1,850
1,893
California
School
Fin.
Auth.,
Kipp
Socal
Public
School,
Series A,
5.00%,
7/1/54 (4)
1,150
1,172
California
School
Fin.
Auth.,
New
Designs
Charter
School
ADA,
5.00%,
6/1/40 (4)
690
701
California
School
Fin.
Auth.,
New
Designs
Charter
School
ADA,
5.00%,
6/1/50 (4)
2,090
2,099
California
State
Univ.,
Series C,
4.00%,
11/1/45
1,100
1,103
California
Statewide
CDA,
5.00%,
9/2/40
1,055
1,110
California
Statewide
CDA,
5.375%,
9/2/52
1,990
2,096
California
Statewide
CDA,
Series D,
5.50%,
9/2/53
2,500
2,610
California
Statewide
CDA,
899
Charleston
Project,
Series A,
5.25%,
11/1/44 (4)
1,500
1,497
California
Statewide
CDA,
CHF-Irvine,
5.00%,
5/15/34
1,250
1,278
California
Statewide
CDA,
CHF-Irvine,
5.00%,
5/15/35
1,000
1,021
California
Statewide
CDA,
CHF-Irvine,
5.00%,
5/15/40
1,000
1,015
California
Statewide
CDA,
Enloe
Medical
Center,
5.00%,
8/15/38
(Prerefunded
2/15/26) (5)
2,500
2,590
California
Statewide
CDA,
Enloe
Medical
Center,
Series A,
5.25%,
8/15/52 (1)
3,120
3,374
California
Statewide
CDA,
Enloe
Medical
Center,
Series A,
5.375%,
8/15/57 (1)
1,000
1,087
California
Statewide
CDA,
Front
Porch
Communities
&
Services,
4.00%,
4/1/41
2,000
1,958
California
Statewide
CDA,
Front
Porch
Communities
&
Services,
4.00%,
4/1/51
4,000
3,687
California
Statewide
CDA,
Front
Porch
Communities
&
Services,
5.00%,
11/15/44
(Prerefunded
11/15/24) (1)(5)
1,750
1,757
California
Statewide
CDA,
Front
Porch
Communities
&
Services,
Series A,
5.00%,
4/1/28
390
405
California
Statewide
CDA,
Front
Porch
Communities
&
Services,
Series A,
5.00%,
4/1/31
175
181
California
Statewide
CDA,
Front
Porch
Communities
&
Services,
Series A,
5.00%,
4/1/47
1,750
1,776
California
Statewide
CDA,
Huntington
Memorial
Hosp.
Project,
5.00%,
7/1/43
1,750
1,827
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
Par
$
Value
(Amounts
in
000s)
California
Statewide
CDA,
Huntington
Memorial
Hosp.
Project,
5.00%,
7/1/48
5,650
5,858
California
Statewide
CDA,
Infrastructure
Program,
5.00%,
9/2/50
800
825
California
Statewide
CDA,
Infrastructure
Program,
Series A,
5.00%,
9/2/48
940
972
California
Statewide
CDA,
John
Muir
Health,
Series A,
4.00%,
8/15/51
2,100
2,015
California
Statewide
CDA,
John
Muir
Health,
Series A,
5.00%,
8/15/46
1,000
1,017
California
Statewide
CDA,
John
Muir
Health,
Series A,
5.00%,
8/15/51
1,750
1,779
California
Statewide
CDA,
John
Muir
Health,
Series A,
5.00%,
12/1/53
1,000
1,028
California
Statewide
CDA,
John
Muir
Health,
Series A,
5.25%,
12/1/54
5,000
5,595
California
Statewide
CDA,
Lancer
Educational
Student
Housing
Project,
Series A,
5.00%,
6/1/34 (4)
375
391
California
Statewide
CDA,
Lancer
Educational
Student
Housing
Project,
Series A,
5.00%,
6/1/39 (4)
675
691
California
Statewide
CDA,
Lancer
Educational
Student
Housing
Project,
Series A,
5.00%,
6/1/51 (4)
4,135
4,155
California
Statewide
CDA,
Loma
Linda
Univ.
Medical
Center,
Series A,
5.00%,
12/1/36 (4)
500
509
California
Statewide
CDA,
Loma
Linda
Univ.
Medical
Center,
Series A,
5.50%,
12/1/58 (4)
7,750
8,002
California
Statewide
CDA,
Methodist
Hosp.
of
Southern
CA,
5.00%,
1/1/38
750
794
California
Statewide
CDA,
Methodist
Hosp.
of
Southern
CA,
5.00%,
1/1/43
1,800
1,885
California
Statewide
CDA,
Methodist
Hosp.
of
Southern
CA,
5.00%,
1/1/48
2,910
3,029
California
Statewide
CDA,
Montage
Health,
Series A,
4.00%,
6/1/40
1,000
1,023
California
Statewide
CDA,
Montage
Health,
Series A,
4.00%,
6/1/41
1,000
1,018
California
Statewide
CDA,
Statewide
Community
Infrastructure
Program,
4.00%,
9/2/29
1,000
1,027
California
Statewide
CDA,
Statewide
Community
Infrastructure
Program,
5.00%,
9/2/49
1,000
1,037
California
Statewide
CDA,
Statewide
Community
Infrastructure
Program,
Series A-1,
5.00%,
9/2/42
1,000
1,052
California
Statewide
CDA,
Statewide
Community
Infrastructure
Program,
Series A-1,
5.00%,
9/2/52
1,100
1,131
California
Statewide
CDA,
Univ.
of
California,
Irvine
Campus,
Series A,
5.00%,
5/15/26
950
980
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
Par
$
Value
(Amounts
in
000s)
California
Statewide
CDA,
Univ.
of
California,
Irvine
Campus,
Series A,
5.00%,
5/15/28
1,230
1,287
California
Statewide
CDA,
Univ.
of
California,
Irvine
Campus,
Series A,
5.00%,
5/15/37
1,000
1,031
California
Statewide
CDA,
Univ.
of
California,
Irvine
Campus,
Series A,
5.00%,
5/15/42
3,700
3,777
California
Statewide
CDA,
Viamonte
Senior
Living,
Series A,
5.00%,
7/1/30
125
136
California
Statewide
CDA,
Viamonte
Senior
Living,
Series A,
5.00%,
7/1/31
150
163
California
Statewide
CDA,
Viamonte
Senior
Living,
Series A,
5.00%,
7/1/32
100
108
California
Statewide
CDA,
Viamonte
Senior
Living,
Series A,
5.00%,
7/1/33
125
135
California,
Various
Purpose,
GO,
5.00%,
10/1/39
2,375
2,379
Chino
Valley
Unified
School
Dist.,
Series B,
GO,
3.375%,
8/1/50 (1)
7,950
7,038
Chino
Valley
Unified
School
Dist.,
Series D,
GO,
5.00%,
8/1/55
5,000
5,541
Clovis
Unified
School
Dist.,
Series C,
GO,
4.00%,
8/1/48
1,750
1,742
Compton
Community
Redev.
Agency
Successor
Agency,
Series A,
5.00%,
8/1/37 (1)
1,700
1,889
Compton
Community
Redev.
Agency
Successor
Agency,
Series A,
5.00%,
8/1/42 (1)
1,250
1,359
CSCDA
Community
Improvement
Auth.,
Altana
Glendale
Social
Bonds,
Series A-2,
4.00%,
10/1/56 (4)
2,470
2,016
CSCDA
Community
Improvement
Auth.,
Parallel
Anaheim
Social
Bonds,
4.00%,
8/1/56 (4)
2,960
2,659
CSCDA
Community
Improvement
Auth.,
The
Link
Glendale
Social
Bonds,
Series A-2,
4.00%,
7/1/56 (4)
3,535
2,768
Del
Mar
Race
Track
Auth.,
5.00%,
10/1/35
1,665
1,667
Del
Mar
Race
Track
Auth.,
5.00%,
10/1/36
700
700
Desert
Community
College
Dist.,
GO,
4.00%,
8/1/51
5,265
5,199
Federal
Home
Loan
Mortgage
Multifamily
Variable
Rate
Certificate,
Series M-049,
3.05%,
4/15/34
1,830
1,681
Foothill-Eastern
Transportation
Corridor
Agency,
Series A,
4.00%,
1/15/46
4,000
3,888
Foothill-Eastern
Transportation
Corridor
Agency,
Series C,
4.00%,
1/15/32
175
181
Foothill-Eastern
Transportation
Corridor
Agency,
Series C,
4.00%,
1/15/33
250
259
Foothill-Eastern
Transportation
Corridor
Agency,
Series C,
5.00%,
1/15/30
150
163
Foothill-Eastern
Transportation
Corridor
Agency,
Series C,
5.00%,
1/15/31
150
165
Garden
Grove
PFA,
Series A,
4.00%,
4/1/54 (2)
2,125
2,077
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
Par
$
Value
(Amounts
in
000s)
Inland
Valley
Dev.
Agency,
Tax
Allocation,
Series A,
5.00%,
9/1/44
4,600
4,616
Inland
Valley
Dev.
Agency,
Tax
Allocation,
Series A,
5.25%,
9/1/37
3,100
3,112
Irvine
Fac.
Fin.
Auth.,
Series A,
4.00%,
9/1/58 (2)
4,700
4,591
Irvine
Unified
School
Dist.,
Community
Fac.
Dist.
No.
09-1,
Special
Tax,
Series B,
5.00%,
9/1/47
1,295
1,325
Irvine
Unified
School
Dist.,
Community
Fac.
Dist.
No.
09-1,
Special
Tax,
Series C,
5.00%,
9/1/47
525
537
Irvine
Unified
School
Dist.,
Community
Fac.
Dist.
No.
09-1,
Special
Tax,
Series D,
5.00%,
3/1/57
2,335
2,379
Irvine,
Community
Fac.
Dist.
No.
2013-3,
Special
Tax,
5.00%,
9/1/34
(Prerefunded
9/1/24) (5)
360
360
Irvine,
Community
Fac.
Dist.
No.
2013-3,
Special
Tax,
5.00%,
9/1/37
1,390
1,449
Irvine,
Community
Fac.
Dist.
No.
2013-3,
Special
Tax,
5.00%,
9/1/39
(Prerefunded
9/1/24) (5)
1,000
1,000
Irvine,
Community
Fac.
Dist.
No.
2013-3,
Special
Tax,
5.00%,
9/1/43
2,000
2,071
Irvine,
Community
Fac.
Dist.
No.
2013-3,
Special
Tax,
5.00%,
9/1/44
(Prerefunded
9/1/24) (5)
1,500
1,500
Irvine,
Community
Fac.
Dist.
No.
2013-3,
Special
Tax,
Zero
Coupon,
9/1/50 (2)
1,200
357
Irvine,
Community
Fac.
Dist.
No.
2013-3,
Special
Tax,
Zero
Coupon,
9/1/51 (2)
1,500
424
Irvine,
Community
Fac.
Dist.
No.
2013-3,
Special
Tax,
Zero
Coupon,
9/1/52 (2)
1,400
375
Irvine,
Community
Fac.
Dist.
No.
2013-3,
Special
Tax,
Zero
Coupon,
9/1/53 (2)
1,000
255
Irvine,
Community
Fac.
Dist.
No.
2013-3,
Special
Tax,
Zero
Coupon,
9/1/54 (2)
145
35
Jefferson
Union
High
School
Dist.,
Series A,
GO,
6.45%,
8/1/25 (8)
290
296
Jefferson
Union
High
School
Dist.,
Series A,
GO,
6.45%,
8/1/29 (8)
1,000
1,094
Jurupa
PFA,
Special
Tax,
Series A,
5.00%,
9/1/33
(Prerefunded
9/1/24) (5)
1,175
1,175
Kern
Community
College
Dist.,
Series C,
GO,
3.00%,
8/1/46 (2)
6,750
5,672
Lake
Elsinore,
Community
Fac.
Dist.
No.
2016-2,
Special
Tax,
5.00%,
9/1/43
2,475
2,553
Lake
Elsinore,
Community
Fac.
Dist.
No.
2016-2,
Special
Tax,
5.00%,
9/1/48
3,640
3,724
Long
Beach
Bond
Fin.
Auth.,
Series A,
5.50%,
11/15/37
2,160
2,530
Long
Beach,
Harbor,
Series A,
5.00%,
5/15/37 (3)
1,300
1,348
Long
Beach,
Marina
System,
5.00%,
5/15/32
1,655
1,666
Long
Beach,
Marina
System,
5.00%,
5/15/45
2,500
2,504
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
Par
$
Value
(Amounts
in
000s)
Los
Angeles
County
Fac.,
Vermont
Corridor
County
Administrative
Building,
Series A,
5.00%,
12/1/43
6,400
6,777
Los
Angeles
County
Metropolitan
Transportation
Auth.
Sales
Tax
Revenue,
Series A,
5.00%,
7/1/42
2,475
2,858
Los
Angeles
County
Metropolitan
Transportation
Auth.,
Green
Bond-Measure
R
Junior,
Series A,
4.00%,
6/1/37
1,375
1,434
Los
Angeles
Dept.
of
Airports,
3.25%,
5/15/49 (3)
1,000
811
Los
Angeles
Dept.
of
Airports,
Series A,
4.00%,
5/15/42 (3)
5,225
5,092
Los
Angeles
Dept.
of
Airports,
Series A,
5.00%,
5/15/35 (3)
500
523
Los
Angeles
Dept.
of
Airports,
Series A,
5.00%,
5/15/44 (3)
1,000
1,026
Los
Angeles
Dept.
of
Airports,
Series B,
5.00%,
5/15/36 (3)
1,200
1,224
Los
Angeles
Dept.
of
Airports,
Series B,
5.00%,
5/15/42
930
970
Los
Angeles
Dept.
of
Airports,
Series C,
5.00%,
5/15/45 (3)
1,620
1,713
Los
Angeles
Dept.
of
Airports,
Series D,
4.00%,
5/15/51 (3)
2,000
1,910
Los
Angeles
Dept.
of
Airports,
Series D,
5.00%,
5/15/36 (3)
1,000
1,050
Los
Angeles
Dept.
of
Airports,
Series D,
5.00%,
5/15/37 (3)
1,000
1,048
Los
Angeles
Dept.
of
Airports,
Green
Bond,
Series G,
4.00%,
5/15/47 (3)
1,500
1,439
Los
Angeles
Dept.
of
Airports,
Revenue
Bonds
2015,
Series D,
5.00%,
5/15/36 (3)
1,500
1,513
Los
Angeles
Dept.
of
Water
&
Power
Water
System
Revenue,
Series A-1,
VRDN,
3.65%,
7/1/50
255
255
Los
Angeles
Dept.
of
Water
&
Power
Water
System
Revenue,
Series A-2,
VRDN,
3.60%,
7/1/51
1,100
1,100
Los
Angeles
Dept.
of
Water
&
Power
Water
System
Revenue,
Series A-2,
VRDN,
3.65%,
7/1/51
700
700
Los
Angeles
Dept.
of
Water
&
Power
Water
System
Revenue,
Series B,
5.00%,
7/1/52
1,000
1,091
Los
Angeles
Dept.
of
Water
&
Power
Water
System
Revenue,
Series D,
5.00%,
7/1/52
3,425
3,742
Los
Angeles
Unified
School
Dist.,
Election
2008,
Series A,
GO,
4.00%,
7/1/34
3,750
3,761
Modesto
Elementary
School
Dist.,
Series B,
GO,
3.00%,
8/1/50
2,700
2,199
Newport
Beach,
Series A,
4.125%,
9/2/38
570
580
Newport
Beach,
Series A,
5.00%,
9/2/43
645
691
Norman
Y
Mineta
San
Jose
Int'l.
Airport,
Series A,
5.00%,
3/1/25
(Prerefunded
10/28/24) (3)(5)
1,405
1,409
Norman
Y
Mineta
San
Jose
Int'l.
Airport,
Series A,
5.00%,
3/1/41 (3)
2,000
2,034
Norman
Y
Mineta
San
Jose
Int'l.
Airport,
Series A,
5.00%,
3/1/47 (3)
2,000
2,021
Norman
Y
Mineta
San
Jose
Int'l.
Airport,
Series C,
5.00%,
3/1/31
(Prerefunded
10/28/24) (5)
2,000
2,006
Northern
California
Energy
Auth.,
VRDN,
5.00%,
12/1/54
(Tender
8/1/30)
4,000
4,293
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
Par
$
Value
(Amounts
in
000s)
Oakland
Unified
School
Dist.,
Alameda
County,
Series A,
GO,
5.25%,
8/1/48 (1)
4,500
5,058
Oceanside
Unified
School
Dist.,
GO,
Zero
Coupon,
8/1/28 (7)
(9)
380
343
Oceanside
Unified
School
Dist.,
Series A,
GO,
Zero
Coupon,
8/1/28 (7)(9)
500
451
Oceanside
Unified
School
Dist.,
Prerefunded
Balance,
Series A,
GO,
Zero
Coupon,
8/1/28 (7)(9)
250
225
Oceanside
Unified
School
Dist.,
Unrefunded
Balance,
GO,
Zero
Coupon,
8/1/28 (9)
3,870
3,453
Ontario
Int'l
Airport
Auth.,
North
Terminal
Project,
Series B,
4.00%,
5/15/36 (1)(3)
1,040
1,036
Ontario
Int'l
Airport
Auth.,
North
Terminal
Project,
Series B,
4.00%,
5/15/37 (1)(3)
575
572
Ontario
Int'l
Airport
Auth.,
North
Terminal
Project,
Series B,
4.00%,
5/15/40 (1)(3)
1,350
1,323
Orange
County
Community
Fac.
Dist.,
No.
2015-1,
Esencia
Village,
Series A,
5.25%,
8/15/45
2,930
2,957
Orange
County
Community
Fac.
Dist.,
No.
2021-1,
Rienda,
Series A,
5.00%,
8/15/47
500
521
Orange
County
Community
Fac.
Dist.,
No.
2023-1,
Rienda,
Series A,
5.25%,
8/15/43
1,340
1,450
Orange
County
Community
Fac.
Dist.,
No.
2023-1,
Rienda,
Series A,
5.50%,
8/15/48
1,450
1,569
Orange
County
Community
Fac.
Dist.,
No.
2023-1,
Rienda,
Series A,
5.50%,
8/15/53
1,000
1,077
Palo
Alto,
Limited
Obligation,
University
Ave.,
5.00%,
9/2/26
880
891
Palo
Alto,
Limited
Obligation,
University
Ave.,
5.00%,
9/2/27
450
455
Palo
Alto,
Limited
Obligation,
University
Ave.,
5.00%,
9/2/28
525
531
Palomar
Health,
Election
2004,
Series A,
GO,
Zero
Coupon,
8/1/25 (9)
5,000
4,847
Pittsburg
Redev.
Agency,
Successor
Agency,
Series A,
5.00%,
9/1/29 (1)
1,935
2,013
Port
of
Los
Angeles,
Harbor
Dept.,
Series A,
5.00%,
8/1/36 (3)
4,075
4,079
Port
of
Oakland,
Unrefunded
Balance,
Series H,
5.00%,
5/1/29 (3)
1,725
1,858
Rancho
Cucamonga
Redev.
Agency,
Successor
Agency,
5.00%,
9/1/29 (1)
1,800
1,803
Ravenswood
City
School
Dist.,
GO,
5.25%,
8/1/53 (2)
4,310
4,828
Regents
of
the
Univ.
of
California
Medical
Center
Pooled
Revenue,
Series B-1,
VRDN,
3.60%,
5/15/32
3,950
3,950
Regents
of
the
Univ.
of
California
Medical
Center
Pooled
Revenue,
Series B-2,
VRDN,
3.85%,
5/15/32
1,400
1,400
Regents
of
the
Univ.
of
California
Medical
Center
Pooled
Revenue,
Series L,
4.50%,
5/15/36
1,900
1,930
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
Par
$
Value
(Amounts
in
000s)
Regents
of
the
Univ.
of
California
Medical
Center
Pooled
Revenue,
Series O-1,
VRDN,
3.60%,
5/15/45
2,500
2,500
Regents
of
the
Univ.
of
California
Medical
Center
Pooled
Revenue,
Series P,
4.00%,
5/15/53
3,000
2,982
Regents
of
the
Univ.
of
California
Medical
Center
Pooled
Revenue,
Series P,
5.00%,
5/15/47
5,000
5,465
Regents
of
the
Univ.
of
California,
Medical
Center
Pooled
Revenue,
Series P,
3.50%,
5/15/54
9,450
8,708
Riverside
County
Transportation
Commission,
Series B-1,
4.00%,
6/1/46
3,000
2,961
Rocklin,
Special
Tax,
5.00%,
9/1/37
535
544
Rocklin,
Special
Tax,
5.00%,
9/1/38
975
991
Roseville
Natural
Gas
Fin.
Auth.,
5.00%,
2/15/26
1,000
1,020
Sacramento
City
Fin.
Auth.,
5.00%,
12/1/31 (2)
1,380
1,415
Sacramento
County
Airport,
Series A,
5.00%,
7/1/41
2,175
2,229
Sacramento
County
Airport,
Series B,
5.00%,
7/1/41
2,275
2,322
Sacramento
County
Airport,
Series C,
5.00%,
7/1/36 (3)
4,000
4,162
Sacramento
Transient
Occupancy
Tax,
Convention
Center,
Series A,
5.00%,
6/1/38
1,240
1,311
Sacramento
Transient
Occupancy
Tax,
Convention
Center,
Series A,
5.00%,
6/1/43
4,650
4,839
Sacramento,
Railyards
Community
Fac.
Dist.
No.
201,
5.375%,
9/1/52 (4)
2,195
2,302
San
Bernardino
Redev.
Agency,
Successor
Agency,
Series A,
5.00%,
12/1/31 (1)
1,945
2,034
San
Clemente,
Special
Tax,
Community
Fac.
Dist.
No.
2006-1,
5.00%,
9/1/40
970
981
San
Diego
Assn.
of
Governments
South
Bay
Expressway,
Senior
Lien-Toll,
Series A,
5.00%,
7/1/38
2,100
2,200
San
Diego
Assn.
of
Governments
South
Bay
Expressway,
Senior
Lien-Toll,
Series A,
5.00%,
7/1/42
2,700
2,804
San
Diego
County
Regional
Airport
Auth.,
Series A,
5.00%,
7/1/47
1,800
1,861
San
Diego
County
Regional
Airport
Auth.,
Series B,
4.00%,
7/1/46 (3)
2,540
2,432
San
Diego
County
Regional
Airport
Auth.,
Series B,
4.00%,
7/1/51 (3)
1,500
1,416
San
Diego
County
Regional
Airport
Auth.,
Series B,
4.00%,
7/1/56 (3)
2,500
2,344
San
Diego
County
Regional
Airport
Auth.,
Series B,
5.00%,
7/1/35 (3)
1,215
1,282
San
Diego
County
Regional
Airport
Auth.,
Series B,
5.00%,
7/1/37 (3)
1,000
1,050
San
Diego
County
Regional
Airport
Auth.,
Series B,
5.00%,
7/1/38 (3)
1,000
1,046
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
Par
$
Value
(Amounts
in
000s)
San
Diego
County
Regional
Airport
Auth.,
Series B,
5.00%,
7/1/39 (3)
600
626
San
Diego
County
Regional
Airport
Auth.,
Series B,
5.00%,
7/1/53 (3)
3,350
3,522
San
Diego
County
Regional
Airport
Auth.,
Series B,
5.25%,
7/1/38 (3)
650
725
San
Diego
County
Water
Auth.,
Series A,
5.00%,
5/1/47
1,500
1,670
San
Diego
County,
Special
Tax,
Harmony
Grove
Village,
Series A,
4.00%,
9/1/45
550
511
San
Diego
County,
Special
Tax,
Harmony
Grove
Village,
Series A,
4.00%,
9/1/50
1,100
990
San
Diego
County,
Special
Tax,
Harmony
Grove
Village,
Improvement
Area
No.
1,
Series A,
4.00%,
9/1/50
875
787
San
Diego
Public
Fac.
Fin.
Auth.,
Series A,
5.00%,
5/15/52
5,650
6,198
San
Diego
Unified
School
Dist.,
Green
Bond,
Series A-3,
GO,
4.00%,
7/1/53
6,000
5,961
San
Diego
Unified
School
Dist.,
Green
Bond,
Series O-2,
GO,
4.25%,
7/1/47
3,000
3,073
San
Francisco
Bay
Area
Rapid
Transit
Dist.,
Series C-1,
GO,
4.00%,
8/1/45
1,025
1,020
San
Francisco
Bay
Area
Rapid
Transit
Dist.
Sales
Tax,
Series A,
4.00%,
7/1/37
350
353
San
Francisco
Bay
Area
Rapid
Transit
Dist.
Sales
Tax,
Series A,
4.00%,
7/1/39
625
628
San
Francisco
City
&
County
Int'l.
Airport,
Commissions,
Series A,
5.00%,
5/1/38 (3)
3,710
3,903
San
Francisco
City
&
County
Int'l.
Airport,
Commissions,
Series A,
5.00%,
5/1/44 (3)
2,950
3,045
San
Francisco
City
&
County
Int'l.
Airport,
Commissions,
Series A,
5.00%,
5/1/49 (3)
5,000
5,128
San
Francisco
City
&
County
Int'l.
Airport,
Commissions,
Series A,
5.00%,
5/1/52 (3)
1,000
1,047
San
Francisco
City
&
County
Int'l.
Airport,
Commissions,
Series A,
5.25%,
5/1/49 (3)
4,000
4,326
San
Francisco
City
&
County
Int'l.
Airport,
Commissions,
Series B,
5.00%,
5/1/46 (3)
5,000
5,057
San
Francisco
City
&
County
Int'l.
Airport,
Commissions,
Series C,
5.75%,
5/1/48 (3)
4,500
5,041
San
Francisco
City
&
County
Int'l.
Airport,
Commissions,
Series E,
4.00%,
5/1/50 (3)
1,645
1,567
San
Francisco
City
&
County
Int'l.
Airport,
Commissions,
Series E,
4.00%,
5/1/50
(Prerefunded
5/1/29) (3)(5)
155
160
San
Francisco
City
&
County
Int'l.
Airport,
Commissions,
Series E,
5.00%,
5/1/50 (3)
500
512
San
Francisco
City
&
County
Int'l.
Airport,
Commissions,
Unrefunded
Balance,
Series A,
5.00%,
5/1/47 (3)
3,000
3,033
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
Par
$
Value
(Amounts
in
000s)
San
Francisco
Public
Utilities
Commission
Water
Revenue,
Series D,
3.00%,
11/1/50
1,500
1,217
San
Jose
Evergreen
Community
College
Dist.,
Series C,
GO,
4.00%,
9/1/45
3,250
3,296
San
Jose
Evergreen
Community
College
Dist.,
Series C,
GO,
5.00%,
9/1/40
1,000
1,144
San
Jose
Redev.
Agency,
Successor
Agency,
Series A,
5.00%,
8/1/34
2,500
2,644
San
Jose,
El
Parador
Apartments
Project,
Series A,
6.10%,
1/1/31 (3)
700
700
San
Marcos
Redev.
Agency,
Successor
Agency,
Series A,
5.00%,
10/1/31
2,165
2,208
San
Marcos
Redev.
Agency,
Successor
Agency,
Series A,
5.00%,
10/1/32
850
866
San
Marcos
Redev.
Agency,
Successor
Agency,
Series A,
5.00%,
10/1/34
900
917
San
Mateo
Foster
City
School
Dist.,
Series B,
GO,
4.00%,
8/1/48
4,000
4,009
Santa
Monica
Redev.
Agency,
Earthquake
Recovery,
5.875%,
7/1/36
1,390
1,393
Santa
Monica
Redev.
Agency,
Earthquake
Recovery,
5.875%,
7/1/42
1,500
1,503
Sequoia
Union
High
School
Dist.,
GO,
4.00%,
7/1/52
3,750
3,723
Southern
California
Public
Power
Auth.,
Clean
Energy
Project,
Series A,
VRDN,
5.00%,
4/1/55
(Tender
9/1/30)
2,500
2,691
Southern
California
Tobacco
Securitization
Auth,
Asset
Backed,
Series A,
Class
1,
5.00%,
6/1/33
1,170
1,263
Southern
California
Tobacco
Securitization
Auth,
Asset
Backed,
Series A,
Class
1,
5.00%,
6/1/35
900
969
Sunnyvale
Fin.
Auth.,
Green
Bond-Civic
Center
Project,
4.00%,
4/1/50
4,740
4,707
Transbay
Joint
Powers
Auth.,
Green
Bond,
Series A,
5.00%,
10/1/45
1,750
1,805
Transbay
Joint
Powers
Auth.,
Green
Bond,
Series A,
5.00%,
10/1/49
1,700
1,741
Univ.
of
California
Regents,
Series AL-1,
VRDN,
3.45%,
5/15/48
2,100
2,100
Univ.
of
California
Regents,
Series AZ,
5.00%,
5/15/48
4,250
4,459
Univ.
of
California
Regents,
Series O,
5.50%,
5/15/58
9,500
10,083
Vernon
Electric
System
Revenue,
Series 2022-A,
5.00%,
8/1/41
840
908
Washington
Township
Health
Care
Dist.,
Series A,
4.00%,
7/1/35
600
592
Washington
Township
Health
Care
Dist.,
Series A,
5.00%,
7/1/30
500
524
Washington
Township
Health
Care
Dist.,
Series A,
5.00%,
7/1/31
1,000
1,045
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
Par
$
Value
(Amounts
in
000s)
Washington
Township
Health
Care
Dist.,
Series A,
5.00%,
7/1/36
620
637
Washington
Township
Health
Care
Dist.,
Series A,
5.00%,
7/1/42
325
329
Washington
Township
Health
Care
Dist.,
Series A,
5.00%,
7/1/43
275
277
Washington
Township
Health
Care
Dist.,
Series A,
5.75%,
7/1/48
1,000
1,098
Washington
Township
Health
Care
Dist.,
Series A,
5.75%,
7/1/53
1,000
1,085
Washington
Township
Health
Care
Dist.,
Series B,
GO,
5.25%,
8/1/48
1,600
1,794
Washington
Township
Health
Care
Dist.,
Series B,
GO,
5.50%,
8/1/53
1,600
1,814
West
Sacramento
Fin.
Auth.,
Series A,
5.00%,
9/1/26 (9)
855
884
740,142
NORTH
CAROLINA
0.3%
Univ.
of
North
Carolina
at
Chapel
Hill,
Series B,
VRDN,
3.80%,
2/15/31
2,200
2,200
2,200
PUERTO
RICO
3.1%
Puerto
Rico
Commonwealth,
GO,
VR,
11/1/43 (10)
4,115
2,603
Puerto
Rico
Commonwealth
Aqueduct
&
Sewer
Auth.,
Series A,
5.00%,
7/1/35 (4)
1,590
1,664
Puerto
Rico
Commonwealth,
Restructured,
Series A,
GO,
Zero
Coupon,
7/1/33
423
284
Puerto
Rico
Commonwealth,
Restructured,
Series A-1,
GO,
4.00%,
7/1/33
1,329
1,318
Puerto
Rico
Commonwealth,
Restructured,
Series A-1,
GO,
4.00%,
7/1/35
295
291
Puerto
Rico
Commonwealth,
Restructured,
Series A-1,
GO,
4.00%,
7/1/37
576
563
Puerto
Rico
Commonwealth,
Restructured,
Series A-1,
GO,
4.00%,
7/1/41
345
327
Puerto
Rico
Commonwealth,
Restructured,
Series A-1,
GO,
5.375%,
7/1/25
183
184
Puerto
Rico
Commonwealth,
Restructured,
Series A-1,
GO,
5.625%,
7/1/27
902
939
Puerto
Rico
Commonwealth,
Restructured,
Series A-1,
GO,
5.625%,
7/1/29
1,317
1,417
Puerto
Rico
Commonwealth,
Restructured,
Series A-1,
GO,
5.75%,
7/1/31
1,846
2,044
Puerto
Rico
Electric
Power
Auth.,
Series A,
5.05%,
7/1/42 (11)
(12)
15
8
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
Par
$
Value
(Amounts
in
000s)
Puerto
Rico
Electric
Power
Auth.,
Series CCC,
5.00%,
7/1/27 (11)(12)
25
13
Puerto
Rico
Electric
Power
Auth.,
Series CCC,
5.25%,
7/1/27 (11)(12)
225
121
Puerto
Rico
Electric
Power
Auth.,
Series CCC,
5.25%,
7/1/28 (11)(12)
65
35
Puerto
Rico
Electric
Power
Auth.,
Series TT,
5.00%,
7/1/20 (11)
(12)
80
43
Puerto
Rico
Electric
Power
Auth.,
Series TT,
5.00%,
7/1/24 (11)
(12)
305
164
Puerto
Rico
Electric
Power
Auth.,
Series TT,
5.00%,
7/1/25 (11)
(12)
100
54
Puerto
Rico
Electric
Power
Auth.,
Series TT,
5.00%,
7/1/26 (11)
(12)
125
67
Puerto
Rico
Electric
Power
Auth.,
Series TT,
5.00%,
7/1/27 (11)
(12)
15
8
Puerto
Rico
Electric
Power
Auth.,
Series WW,
5.00%,
7/1/28 (11)(12)
15
8
Puerto
Rico
Electric
Power
Auth.,
Series WW,
5.25%,
7/1/33 (11)(12)
75
40
Puerto
Rico
Electric
Power
Auth.,
Series WW,
5.50%,
7/1/18 (11)(12)
65
35
Puerto
Rico
Electric
Power
Auth.,
Series XX,
5.25%,
7/1/27 (11)
(12)
30
16
Puerto
Rico
Electric
Power
Auth.,
Series XX,
5.25%,
7/1/40 (11)
(12)
80
43
Puerto
Rico
Electric
Power
Auth.,
Series XX,
5.75%,
7/1/36 (11)
(12)
60
32
Puerto
Rico
Electric
Power
Auth.,
Series ZZ,
3.70%,
7/1/17 (11)
(12)
20
11
Puerto
Rico
Electric
Power
Auth.,
Series ZZ,
5.00%,
7/1/17 (11)
(12)
35
19
Puerto
Rico
Electric
Power
Auth.,
Series ZZ,
5.00%,
7/1/28 (11)
(12)
25
14
Puerto
Rico
Electric
Power
Auth.,
Series ZZ,
5.25%,
7/1/19 (11)
(12)
245
132
Puerto
Rico
Electric
Power
Auth.,
Series ZZ,
5.25%,
7/1/23 (11)
(12)
70
38
Puerto
Rico
Electric
Power
Auth.,
Series ZZ,
5.25%,
7/1/24 (11)
(12)
25
13
Puerto
Rico
Sales
Tax
Fin.,
Restructured,
Series A-1,
4.55%,
7/1/40
465
466
Puerto
Rico
Sales
Tax
Fin.,
Restructured,
Series A-1,
4.75%,
7/1/53
7,647
7,574
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
Par
$
Value
(Amounts
in
000s)
Puerto
Rico
Sales
Tax
Fin.,
Restructured,
Series A-1,
Zero
Coupon,
7/1/46
10,000
3,353
23,941
Total
Municipal
Securities
(Cost
$758,917)
766,283
NON-U.S.
GOVERNMENT
MORTGAGE-BACKED
SECURITIES 0.4%
Freddie
Mac
Multifamily
ML
Certificates,
Series 2021-ML10,
Class
ACA,
2.046%,
6/25/38
3,363
2,754
Total
Non-U.S.
Government
Mortgage-Backed
Securities
(Cost
$3,457)
2,754
Total
Investments
in
Securities
99.5%
of
Net
Assets
(Cost
$762,374)
$
769,037
‡
Par
is
denominated
in
U.S.
dollars
unless
otherwise
noted.
(1)
Insured
by
Assured
Guaranty
Municipal
Corporation
(2)
Insured
by
Build
America
Mutual
Assurance
Company
(3)
Interest
subject
to
alternative
minimum
tax.
(4)
Security
was
purchased
pursuant
to
Rule
144A
under
the
Securities
Act
of
1933
and
may
be
resold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers.
Total
value
of
such
securities
at
period-end
amounts
to
$51,991
and
represents
6.7%
of
net
assets.
(5)
Prerefunded
date
is
used
in
determining
portfolio
maturity.
(6)
When-issued
security
(7)
Escrowed
to
maturity
(8)
Insured
by
National
Public
Finance
Guarantee
Corporation
(9)
Insured
by
Assured
Guaranty
Corporation
(10)
Contingent
value
instrument
that
only
pays
out
if
a
portion
of
the
territory's
Sales
and
Use
Tax
outperforms
the
projections
in
the
Oversight
Board’s
Certified
Fiscal
Plan.
(11)
Issuer
is
currently
in
a
bankruptcy
reorganization
proceeding;
the
amount
and
timing
of
future
distributions
is
uncertain.
(12)
Non-income
producing
CDA
Community
Development
Administration/Authority
EFA
Educational
Facility
Authority
FRN
Floating
Rate
Note
GO
General
Obligation
HFFA
Health
Facility
Financing
Authority
MUNIPSA
Securities
Industry
and
Financial
Markets
Association
(SIFMA)
Municipal
Swap
Index
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
.
.
.
.
.
.
.
.
.
.
PFA
Public
Finance
Authority/Agency
VR
Variable
Rate;
rate
shown
is
effective
rate
at
period-end.
The
rates
for
certain
variable
rate
securities
are
not
based
on
a
published
reference
rate
and
spread
but
are
determined
by
the
issuer
or
agent
and
based
on
current
market
conditions.
VRDN
Variable
Rate
Demand
Note
under
which
the
holder
has
the
right
to
sell
the
security
to
the
issuer
or
the
issuer’s
agent
at
a
predetermined
price
on
specified
dates;
such
specified
dates
are
considered
the
effective
maturity
for
purposes
of
the
fund’s
weighted
average
maturity;
rate
shown
is
effective
rate
at
period-end
and
maturity
date
shown
is
final
maturity.
Certain
VRDN
rates
are
not
based
on
a
published
reference
rate
and
spread
but
may
adjust
periodically.
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
August
31,
2024
(Unaudited)
Statement
of
Assets
and
Liabilities
($000s,
except
shares
and
per
share
amounts)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Assets
Investments
in
securities,
at
value
(cost
$762,374)
$
769,037
Interest
receivable
8,765
Receivable
for
shares
sold
1,220
Receivable
for
investment
securities
sold
410
Cash
7
Other
assets
29
Total
assets
779,468
Liabilities
Payable
for
investment
securities
purchased
4,673
Payable
for
shares
redeemed
1,101
Investment
management
fees
payable
250
Due
to
affiliates
24
Other
liabilities
524
Total
liabilities
6,572
Commitments
and
Contingent
Liabilities
(note
5
)
NET
ASSETS
$
772,896
Net
Assets
Consist
of:
Total
distributable
earnings
(loss)
$
(6,760)
Paid-in
capital
applicable
to
70,738,474
shares
of
$0.0001
par
value
capital
stock
outstanding;
2,000,000,000
shares
of
the
Corporation
authorized
779,656
NET
ASSETS
$
772,896
NET
ASSET
VALUE
PER
SHARE
Investor
Class
(Net
assets:
$390,425;
Shares
outstanding:
35,724,558)
$
10.93
I
Class
(Net
assets:
$382,471;
Shares
outstanding:
35,013,916)
$
10.92
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
(Unaudited)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
6
Months
Ended
8/31/24
Investment
Income
(Loss)
Interest
income
$
14,663
Expenses
Investment
management
1,453
Shareholder
servicing
Investor
Class
$
277
I
Class
27
304
Prospectus
and
shareholder
reports
Investor
Class
8
I
Class
3
11
Custody
and
accounting
108
Registration
24
Legal
and
audit
23
Directors
1
Miscellaneous
8
Waived
/
paid
by
Price
Associates
(15)
Total
expenses
1,917
Net
investment
income
12,746
Realized
and
Unrealized
Gain
/
Loss
–
Net
realized
loss
on
securities
(1,409)
Change
in
net
unrealized
gain
/
loss
on
securities
8,113
Net
realized
and
unrealized
gain
/
loss
6,704
INCREASE
IN
NET
ASSETS
FROM
OPERATIONS
$
19,450
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
(Unaudited)
Statement
of
Changes
in
Net
Assets
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
6
Months
Ended
8/31/24
Year
Ended
2/29/24
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
$
12,746
$
22,770
Net
realized
loss
(1,409)
(4,381)
Change
in
net
unrealized
gain
/
loss
8,113
25,236
Increase
in
net
assets
from
operations
19,450
43,625
Distributions
to
shareholders
Net
earnings
Investor
Class
(6,193)
(11,436)
I
Class
(6,381)
(11,058)
Decrease
in
net
assets
from
distributions
(12,574)
(22,494)
Capital
share
transactions
*
Shares
sold
Investor
Class
43,656
148,714
I
Class
50,874
103,392
Distributions
reinvested
Investor
Class
5,624
10,155
I
Class
3,830
6,990
Shares
redeemed
Investor
Class
(44,769)
(136,885)
I
Class
(36,782)
(69,909)
Increase
in
net
assets
from
capital
share
transactions
22,433
62,457
Net
Assets
Increase
during
period
29,309
83,588
Beginning
of
period
743,587
659,999
End
of
period
$
772,896
$
743,587
*Share
information
(000s)
Shares
sold
Investor
Class
4,026
14,314
I
Class
4,711
9,791
Distributions
reinvested
Investor
Class
521
960
I
Class
355
661
Shares
redeemed
Investor
Class
(4,138)
(13,159)
I
Class
(3,412)
(6,665)
Increase
in
shares
outstanding
2,063
5,902
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
Unaudited
NOTES
TO
FINANCIAL
STATEMENTS
T.
Rowe
Price
State
Tax-Free
Funds,
Inc. (the
corporation) is
registered
under
the
Investment
Company
Act
of
1940
(the
1940
Act).
The
California
Tax-Free
Bond
Fund
(the
fund)
is a
diversified, open-end
management
investment
company
established
by
the
corporation. The
fund
seeks
to
provide,
consistent
with
prudent
portfolio
management,
the
highest
level
of
income
exempt
from
federal
and
California
state
income
taxes
by
investing
primarily
in
investment-grade
California
municipal
bonds.
The
fund
has two classes
of
shares:
the
California
Tax-Free
Bond
Fund
(Investor
Class)
and
the
California
Tax-Free
Bond
Fund–I
Class
(I
Class).
I
Class
shares
require
a
$500,000
initial
investment
minimum,
although
the
minimum
generally
is
waived
or
reduced
for
financial
intermediaries,
eligible
retirement
plans,
and
certain
other
accounts. Each
class
has
exclusive
voting
rights
on
matters
related
solely
to
that
class;
separate
voting
rights
on
matters
that
relate
to
both
classes;
and,
in
all
other
respects,
the
same
rights
and
obligations
as
the
other
class.
NOTE
1
-
SIGNIFICANT
ACCOUNTING
POLICIES
Basis
of
Preparation
The fund
is
an
investment
company
and
follows
accounting
and
reporting
guidance
in
the
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standards
Codification
Topic
946
(ASC
946).
The
accompanying
financial
statements
were
prepared
in
accordance
with
accounting
principles
generally
accepted
in
the
United
States
of
America
(GAAP),
including,
but
not
limited
to,
ASC
946.
GAAP
requires
the
use
of
estimates
made
by
management.
Management
believes
that
estimates
and
valuations
are
appropriate;
however,
actual
results
may
differ
from
those
estimates,
and
the
valuations
reflected
in
the
accompanying
financial
statements
may
differ
from
the
value
ultimately
realized
upon
sale
or
maturity.
Investment
Transactions,
Investment
Income,
and
Distributions
Investment
transactions
are
accounted
for
on
the
trade
date
basis.
Income
and
expenses
are
recorded
on
the
accrual
basis.
Realized
gains
and
losses
are
reported
on
the
identified
cost
basis. Premiums
and
discounts
on
debt
securities
are
amortized
for
financial
reporting
purposes. Paydown
gains
and
losses
are
recorded
as
an
adjustment
to
interest
income. Income
tax-related
interest
and
penalties,
if
incurred,
are
recorded
as
income
tax
expense. Non-cash
dividends,
if
any,
are
recorded
at
the
fair
market
value
of
the
asset
received. Distributions
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
to
shareholders
are
recorded
on
the
ex-dividend
date. Income
distributions,
if
any, are
declared
by
each
class daily
and
paid
monthly. A
capital
gain
distribution,
if
any, may
also
be
declared
and
paid
by
the
fund
annually.
Class
Accounting
Shareholder
servicing,
prospectus,
and
shareholder
report
expenses
incurred
by
each
class
are
charged
directly
to
the
class
to
which
they
relate.
Expenses
common
to
all
classes
and
investment
income
are
allocated
to
the
classes
based
upon
the
relative
daily
net
assets
of
each
class’s
settled
shares;
realized
and
unrealized
gains
and
losses
are
allocated
based
upon
the
relative
daily
net
assets
of
each
class’s
outstanding
shares.
Capital
Transactions
Each
investor’s
interest
in
the
net
assets
of the
fund
is
represented
by
fund
shares. The
fund’s
net
asset
value
(NAV)
per
share
is
computed
at
the
close
of
the
New
York
Stock
Exchange
(NYSE),
normally
4
p.m.
ET,
each
day
the
NYSE
is
open
for
business.
However,
the
NAV
per
share
may
be
calculated
at
a
time
other
than
the
normal
close
of
the
NYSE
if
trading
on
the
NYSE
is
restricted,
if
the
NYSE
closes
earlier,
or
as
may
be
permitted
by
the
SEC.
Purchases
and
redemptions
of
fund
shares
are
transacted
at
the
next-computed
NAV
per
share,
after
receipt
of
the
transaction
order
by
T.
Rowe
Price
Associates,
Inc.,
or
its
agents.
Indemnification
In
the
normal
course
of
business, the
fund
may
provide
indemnification
in
connection
with
its
officers
and
directors,
service
providers,
and/or
private
company
investments. The
fund’s
maximum
exposure
under
these
arrangements
is
unknown;
however,
the
risk
of
material
loss
is
currently
considered
to
be
remote.
NOTE
2
-
VALUATION
Fair
Value
The
fund’s
financial
instruments
are
valued
at
the
close
of
the
NYSE
and
are
reported
at
fair
value,
which
GAAP
defines
as
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
at
the
measurement
date. The fund’s
Board
of
Directors
(the
Board)
has
designated
T.
Rowe
Price
Associates,
Inc.
as
the
fund’s
valuation
designee
(Valuation
Designee).
Subject
to
oversight
by
the
Board,
the
Valuation
Designee
performs
the
following
functions
in
performing
fair
value
determinations:
assesses
and
manages
valuation
risks;
establishes
and
applies
fair
value
methodologies;
tests
fair
value
methodologies;
and
evaluates
pricing
vendors
and
pricing
agents.
The
duties
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
and
responsibilities
of
the
Valuation
Designee
are
performed
by
its
Valuation
Committee. The
Valuation
Designee provides
periodic
reporting
to
the
Board
on
valuation
matters.
Various
valuation
techniques
and
inputs
are
used
to
determine
the
fair
value
of
financial
instruments.
GAAP
establishes
the
following
fair
value
hierarchy
that
categorizes
the
inputs
used
to
measure
fair
value:
Level
1
–
quoted
prices
(unadjusted)
in
active
markets
for
identical
financial
instruments
that
the
fund
can
access
at
the
reporting
date
Level
2
–
inputs
other
than
Level
1
quoted
prices
that
are
observable,
either
directly
or
indirectly
(including,
but
not
limited
to,
quoted
prices
for
similar
financial
instruments
in
active
markets,
quoted
prices
for
identical
or
similar
financial
instruments
in
inactive
markets,
interest
rates
and
yield
curves,
implied
volatilities,
and
credit
spreads)
Level
3
–
unobservable
inputs
(including
the Valuation
Designee’s assumptions
in
determining
fair
value)
Observable
inputs
are
developed
using
market
data,
such
as
publicly
available
information
about
actual
events
or
transactions,
and
reflect
the
assumptions
that
market
participants
would
use
to
price
the
financial
instrument.
Unobservable
inputs
are
those
for
which
market
data
are
not
available
and
are
developed
using
the
best
information
available
about
the
assumptions
that
market
participants
would
use
to
price
the
financial
instrument.
GAAP
requires
valuation
techniques
to
maximize
the
use
of
relevant
observable
inputs
and
minimize
the
use
of
unobservable
inputs.
When
multiple
inputs
are
used
to
derive
fair
value,
the
financial
instrument
is
assigned
to
the
level
within
the
fair
value
hierarchy
based
on
the
lowest-level
input
that
is
significant
to
the
fair
value
of
the
financial
instrument.
Input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level
but
rather
the
degree
of
judgment
used
in
determining
those
values.
Valuation
Techniques
Debt
securities
generally
are
traded
in
the over-the-
counter
(OTC)
market
and
are
valued
at
prices
furnished
by
independent
pricing
services
or
by
broker
dealers
who
make
markets
in
such
securities.
When
valuing
securities,
the
independent
pricing
services
consider
factors
such
as,
but
not
limited
to,
the
yield
or
price
of
bonds
of
comparable
quality,
coupon,
maturity,
and
type,
as
well
as
prices
quoted
by
dealers
who
make
markets
in
such
securities.
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
Assets
and
liabilities
other
than
financial
instruments,
including
short-term
receivables
and
payables,
are
carried
at
cost,
or
estimated
realizable
value,
if
less,
which
approximates
fair
value.
Investments
for
which
market
quotations are
not
readily
available
or
deemed
unreliable
are
valued
at
fair
value
as
determined
in
good
faith
by
the
Valuation
Designee.
The
Valuation
Designee
has
adopted
methodologies
for
determining
the
fair
value
of
investments
for
which
market
quotations
are
not
readily
available
or
deemed
unreliable,
including
the
use
of
other
pricing
sources.
Factors
used
in
determining
fair
value
vary
by
type
of
investment
and
may
include
market
or
investment
specific
considerations.
The
Valuation
Designee typically
will
afford
greatest
weight
to
actual
prices
in
arm’s
length
transactions,
to
the
extent
they
represent
orderly
transactions
between
market
participants,
transaction
information
can
be
reliably
obtained,
and
prices
are
deemed
representative
of
fair
value.
However,
the
Valuation
Designee may
also
consider
other
valuation
methods
such
as
market-based
valuation
multiples;
a
discount
or
premium
from
market
value
of
a
similar,
freely
traded
security
of
the
same
issuer;
discounted
cash
flows;
yield
to
maturity;
or
some
combination.
Fair
value
determinations
are
reviewed
on
a
regular
basis.
Because
any
fair
value
determination
involves
a
significant
amount
of
judgment,
there
is
a
degree
of
subjectivity
inherent
in
such
pricing
decisions. Fair
value
prices
determined
by
the
Valuation
Designee could
differ
from
those
of
other
market
participants,
and
it
is
possible
that
the
fair
value
determined
for
a
security
may
be
materially
different
from
the
value
that
could
be
realized
upon
the
sale
of
that
security.
Valuation
Inputs
On
August
31,
2024,
all
of
the
fund’s
financial
instruments
were
classified
as
Level
2,
based
on
the
inputs
used
to
determine
their
fair
values.
NOTE
3
-
OTHER
INVESTMENT
TRANSACTIONS
Consistent
with
its
investment
objective, the
fund
engages
in
the
following
practices
to
manage
exposure
to
certain
risks
and/or
to
enhance
performance.
The
investment
objective,
policies,
program,
and
risk
factors
of the
fund
are
described
more
fully
in the
fund’s prospectus
and
Statement
of
Additional
Information.
Restricted
Securities
The
fund
invests
in
securities
that
are
subject
to
legal
or
contractual
restrictions
on
resale.
Prompt
sale
of
such
securities
at
an
acceptable
price
may
be
difficult
and
may
involve
substantial
delays
and
additional
costs.
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
Mortgage-Backed
Securities
The
fund
invests
in
mortgage-backed
securities
(MBS
or
pass-through
certificates)
that
represent
an
interest
in
a
pool
of
specific
underlying
mortgage
loans
and
entitle
the
fund
to
the
periodic
payments
of
principal
and
interest
from
those
mortgages.
MBS
may
be
issued
by
government
agencies
or
corporations,
or
private
issuers.
Most
MBS
issued
by
government
agencies
are
guaranteed;
however,
the
degree
of
protection
differs
based
on
the
issuer.
MBS are
sensitive
to
changes
in
economic
conditions
that
affect
the
rate
of
prepayments
and
defaults
on
the
underlying
mortgages;
accordingly,
the
value,
income,
and
related
cash
flows
from
MBS
may
be
more
volatile
than
other
debt
instruments.
When-Issued
Securities
The fund
enters
into
when-issued
purchase
or
sale
commitments,
pursuant
to
which
it
agrees
to
purchase
or
sell,
respectively,
an
authorized
but
not
yet
issued
security
for
a
fixed
unit
price,
with
payment
and
delivery
not
due
until
issuance
of
the
security
on
a
scheduled
future
date.
When-issued
securities
may
be
new
securities
or
securities
issued
through
a
corporate
action,
such
as
a
reorganization
or
restructuring.
Until
settlement,
the
fund
maintains
liquid
assets
sufficient
to
settle
its
commitment
to
purchase
a
when-issued
security.
Amounts
realized
on
when-issued
transactions
are
included
in
realized
gain/loss
on
securities
in
the
accompanying
financial
statements.
Other
Purchases
and
sales
of
portfolio
securities
other
than
in-kind
transactions,
if
any,
and short-term securities
aggregated $76,177,000 and
$38,775,000,
respectively,
for
the
six
months ended
August
31,
2024.
NOTE
4
-
FEDERAL
INCOME
TAXES
Generally,
no
provision
for
federal
income
taxes
is
required
since
the
fund
intends
to continue
to
qualify
as
a
regulated
investment
company
under
Subchapter
M
of
the
Internal
Revenue
Code
and
distribute
to
shareholders
all
of
its income
and
gains.
Distributions
determined
in
accordance
with
federal
income
tax
regulations
may
differ
in
amount
or
character
from
net
investment
income
and
realized
gains
for
financial
reporting
purposes.
Financial
reporting
records
are
adjusted
for
permanent
book/tax
differences
to
reflect
tax
character
but
are
not
adjusted
for
temporary
differences.
The
amount
and
character
of
tax-basis
distributions
and
composition
of
net
assets
are
finalized
at
fiscal
year-
end;
accordingly,
tax-basis
balances
have
not
been
determined
as
of
the
date
of
this
report.
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
The
fund
intends
to
retain
realized
gains
to
the
extent
of
available
capital
loss
carryforwards.
Net
realized
capital
losses
may
be
carried
forward
indefinitely
to
offset
future
realized
capital
gains.
As
of
February
29,
2024,
the
fund
had
$13,563,000
of
available
capital
loss
carryforwards.
At
August
31,
2024,
the
cost
of
investments
(including
derivatives,
if
any)
for
federal
income
tax
purposes
was
$762,374,000.
Net
unrealized
gain
aggregated
$6,663,000
at
period-end,
of
which
$18,172,000
related
to
appreciated
investments
and
$11,509,000
related
to
depreciated
investments.
NOTE
5
-
RELATED
PARTY
TRANSACTIONS
The
fund
is
managed
by
T.
Rowe
Price
Associates,
Inc.
(Price
Associates),
a
wholly
owned
subsidiary
of
T.
Rowe
Price
Group,
Inc.
(Price
Group).
The
investment
management
agreement
between
the
fund
and
Price
Associates
provides
for
an
annual
investment
management
fee,
which
is
computed
daily
and
paid
monthly. The
fee
consists
of
an
individual
fund
fee,
equal
to
0.10%
of
the
fund’s
average
daily
net
assets,
and
a
group
fee.
The
group
fee
rate
is
calculated
based
on
the
combined
net
assets
of
certain
mutual
funds
sponsored
by
Price
Associates
(the
group)
applied
to
a
graduated
fee
schedule,
with
rates
ranging
from
0.48%
for
the
first
$1
billion
of
assets
to
0.260%
for
assets
in
excess
of
$845
billion.
The
fund’s
group
fee
is
determined
by
applying
the
group
fee
rate
to
the
fund’s
average
daily
net
assets. At
August
31,
2024,
the
effective
annual
group
fee
rate
was
0.29%.
The Investor
Class is
subject
to
a
contractual
expense
limitation
through
the
expense
limitation
date
indicated
in
the
table
below.
This
agreement
will
continue
through
the
expense
limitation
date
indicated
in
the
table
below,
and
may
be
renewed,
revised,
or
revoked
only
with
approval
of
the
fund’s
Board.
During
the
limitation
period,
Price
Associates
is required
to
waive
or
pay
any
expenses
(excluding
interest;
expenses
related
to
borrowings,
taxes,
and
brokerage;
non-recurring,
extraordinary
expenses;
and
acquired
fund
fees
and
expenses)
that
would
otherwise
cause
the class’s ratio
of
annualized
total
expenses
to
average
net
assets
(net
expense
ratio)
to
exceed
its
expense
limitation.
The
class
is
required
to
repay
Price
Associates
for
expenses
previously
waived/paid
to
the
extent
the
class’s net
assets
grow
or
expenses
decline
sufficiently
to
allow
repayment
without
causing
the class’s net
expense
ratio
(after
the
repayment
is
taken
into
account)
to
exceed
the
lesser
of:
(1)
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
the
expense
limitation
in
place
at
the
time
such
amounts
were
waived;
or
(2)
the class’s
current
expense
limitation.
However,
no
repayment
will
be
made
more
than
three
years
after
the
date
of
a
payment
or
waiver.
The
I
Class
is
also
subject
to
an
operating
expense
limitation
(I
Class
Limit)
pursuant
to
which
Price
Associates
is
contractually
required
to
pay
all
operating
expenses
of
the
I
Class,
excluding
management
fees;
interest;
expenses
related
to
borrowings,
taxes,
and
brokerage; non-recurring,
extraordinary expenses; and
acquired
fund
fees
and
expenses, to
the
extent
such
operating
expenses,
on
an
annualized
basis,
exceed
the
I
Class
Limit. This
agreement
will
continue
through
the
expense
limitation
date
indicated
in
the
table
below,
and
may
be
renewed,
revised,
or
revoked
only
with
approval
of
the
fund’s
Board.
The
I
Class
is
required
to
repay
Price
Associates
for
expenses
previously
paid
to
the
extent
the
class’s
net
assets
grow
or
expenses
decline
sufficiently
to
allow
repayment
without
causing
the
class’s
operating
expenses
(after
the
repayment
is
taken
into
account)
to
exceed
the
lesser
of:
(1)
the
I
Class
Limit
in
place
at
the
time
such
amounts
were
paid;
or
(2)
the
current
I
Class
Limit.
However,
no
repayment
will
be
made
more
than
three
years
after
the
date
of
a
payment
or
waiver.
Pursuant
to
these
agreements,
expenses
were waived/paid
by
and/or
repaid
to
Price
Associates
during
the six
months
ended August
31,
2024 as
indicated
in
the
table
below.
Including
these
amounts,
expenses
previously
waived/paid
by
Price
Associates
in
the
amount
of $78,000 remain
subject
to
repayment
by
the
fund
at
August
31,
2024. Any
repayment
of
expenses
previously
waived/paid
by
Price
Associates
during
the
period
would
be
included
in
the
net
investment
income
and
expense
ratios
presented
on
the
accompanying
Financial
Highlights.
In
addition,
the
fund
has
entered
into
service
agreements
with
Price
Associates
and
a
wholly
owned
subsidiary
of
Price
Associates,
each
an
affiliate
of
the
fund
(collectively,
Price).
Price
Associates
provides
certain
accounting
and
administrative
services
to
the
fund.
T.
Rowe
Price
Services,
Inc.
provides
shareholder
and
administrative
services
in
its
capacity
as
the
fund’s
transfer
and
dividend-disbursing
agent.
For
the
six
months
ended
August
31,
2024,
Investor
Class
I
Class
Expense
limitation/I
Class
Limit
0.74%
0.05%
Expense
limitation
date
06/30/25
06/30/25
(Waived)/repaid
during
the
period
($000s)
$—
$(15)
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
expenses
incurred
pursuant
to
these
service
agreements
were
$63,000
for
Price
Associates
and
$82,000
for
T.
Rowe
Price
Services,
Inc.
All
amounts
due
to
and
due
from
Price,
exclusive
of
investment
management
fees
payable,
are
presented
net
on
the
accompanying
Statement
of
Assets
and
Liabilities.
T.
Rowe
Price
Investment
Services,
Inc.
(Investment
Services)
serves
as
distributor
to
the
fund.
Pursuant
to
an
underwriting
agreement,
no
compensation
for
any
distribution
services
provided
is
paid
to
Investment
Services
by
the
fund
(except
for
12b-1
fees
under
a
Board-approved
Rule
12b-1
plan).
The fund may
participate
in
securities
purchase
and
sale
transactions
with
other
funds
or
accounts
advised
by
Price
Associates
(cross
trades),
in
accordance
with
procedures
adopted
by the
fund’s
Board
and
Securities
and
Exchange
Commission
rules,
which
require,
among
other
things,
that
such
purchase
and
sale
cross
trades
be
effected
at
the
independent
current
market
price
of
the
security.
During
the
six
months
ended
August
31,
2024,
the
fund
had
no
purchases
or
sales
cross
trades
with
other
funds
or
accounts
advised
by
Price
Associates.
NOTE
6
-
OTHER
MATTERS
Unpredictable environmental,
political,
social
and
economic
events,
including
but
not
limited
to,
environmental
or
natural
disasters,
war
and
conflict
(including
Russia’s
military
invasion
of
Ukraine
and
the
conflict
in
Israel,
Gaza
and
surrounding
areas),
terrorism,
geopolitical
developments
(including
trading
and
tariff
arrangements,
sanctions
and
cybersecurity
attacks),
and
public
health
epidemics
(including
the
global
outbreak
of
COVID-19)
and
similar
public
health
threats,
may
significantly
affect
the
economy
and
the
markets
and
issuers
in
which
a
fund
invests.
The
extent
and
duration
of
such
events
and
resulting
market
disruptions
cannot
be
predicted.
These
and
other
similar
events
may
cause
instability
across
global
markets,
including
reduced
liquidity
and
disruptions
in
trading
markets,
while
some
events
may
affect
certain
geographic
regions,
countries,
sectors,
and
industries
more
significantly
than
others,
and
exacerbate
other
pre-existing
political,
social,
and
economic
risks.
The
fund’s
performance
could
be
negatively
impacted
if
the
value
of
a
portfolio
holding
were
harmed
by
these
or
such
events.
Management
actively
monitors
the
risks
and
financial
impacts
arising
from
such
events.
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
APPROVAL
OF
INVESTMENT
MANAGEMENT
AGREEMENT
Each
year,
the
fund’s
Board
of
Directors
(Board)
considers
the
continuation
of
the
investment
management
agreement
(Advisory
Contract)
between
the
fund
and
its
investment
adviser,
T.
Rowe
Price
Associates,
Inc.
(Adviser).
In
that
regard,
at
a
meeting
held
on
March
11–12,
2024
(Meeting),
the
Board,
including
all
of
the
fund’s
independent
directors
present
in
person
at
the
Meeting,
approved
the
continuation
of
the
fund’s
Advisory
Contract.
At
the
Meeting,
the
Board
considered
the
factors
and
reached
the
conclusions
described
below
relating
to
the
selection
of
the
Adviser
and
the
approval
of
the
Advisory
Contract.
The
independent
directors
were
assisted
in
their
evaluation
of
the
Advisory
Contract
by
independent
legal
counsel
from
whom
they
received
separate
legal
advice
and
with
whom
they
met
separately.
In
providing
information
to
the
Board,
the
Adviser
was
guided
by
a
detailed
set
of
requests
for
information
submitted
by
independent
legal
counsel
on
behalf
of
the
independent
directors.
In
considering
and
approving
the
continuation
of
the
Advisory
Contract,
the
Board
considered
the
information
it
believed
was
relevant,
including,
but
not
limited
to,
the
information
discussed
below.
The
Board
considered
not
only
the
specific
information
presented
in
connection
with
the
Meeting,
but
also
the
knowledge
gained
over
time
through
interaction
with
the
Adviser
about
various
topics.
The
Board
meets
regularly
and,
at
each
of
its
meetings,
covers
an
extensive
agenda
of
topics
and
materials
and
considers
factors
that
are
relevant
to
its
annual
consideration
of
the
renewal
of
the
T.
Rowe
Price
funds’
advisory
contracts,
including
performance
and
the
services
and
support
provided
to
the
funds
and
their
shareholders.
Services
Provided
by
the
Adviser
The
Board
considered
the
nature,
quality,
and
extent
of
the
services
provided
to
the
fund
by
the
Adviser.
These
services
included,
but
were
not
limited
to,
directing
the
fund’s
investments
in
accordance
with
its
investment
program
and
the
overall
management
of
the
fund’s
portfolio,
as
well
as
a
variety
of
related
activities
such
as
financial,
investment
operations,
and
administrative
services;
compliance;
maintaining
the
fund’s
records
and
registrations;
and
shareholder
communications.
The
Board
also
reviewed
the
background
and
experience
of
the
Adviser’s
senior
management
team
and
investment
personnel
involved
in
the
management
of
the
fund,
as
well
as
the
Adviser’s
compliance
record.
The
Board
concluded
that
the
information
it
considered
with
respect
to
the
nature,
quality,
and
extent
of
the
services
provided
by
the
Adviser,
as
well
as
the
other
factors
considered
at
the
Meeting,
supported
the
Board’s
approval
of
the
continuation
of
the
Advisory
Contract.
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
Investment
Performance
of
the
Fund
The
Board
took
into
account
discussions
with
the
Adviser
and
detailed
reports
that
it
regularly
receives
throughout
the
year
on
relative
and
absolute
performance
for
the
T.
Rowe
Price
funds.
In
connection
with
the
Meeting,
the
Board
reviewed
information
provided
by
the
Adviser
that
compared
the
fund’s
total
returns,
as
well
as
a
wide
variety
of
other
previously
agreed-upon
performance
measures
and
market
data,
against
relevant
benchmark
indexes
and
peer
groups
of
funds
with
similar
investment
programs
for
various
periods
through
December
31,
2023.
Additionally,
the
Board
reviewed
the
fund’s
relative
performance
information
as
of
September
30,
2023,
which
ranked
the
returns
of
the
fund’s
Investor
Class
for
various
periods
against
a
universe
of
funds
with
similar
investment
programs
selected
by
Broadridge,
an
independent
provider
of
mutual
fund
data.
In
the
course
of
its
deliberations,
the
Board
considered
performance
information
provided
throughout
the
year
and
in
connection
with
the
Advisory
Contract
review
at
the
Meeting,
as
well
as
information
provided
during
investment
review
meetings
conducted
with
portfolio
managers
and
senior
investment
personnel
during
the
course
of
the
year
regarding
the
fund’s
performance.
The
Board
also
considered
relevant
factors,
such
as
overall
market
conditions
and
trends
that
could
adversely
impact
the
fund’s
performance,
the
length
of
the
fund’s
performance
track
record,
and
how
closely
the
fund’s
strategies
align
with
its
benchmarks
and
peer
groups.
The
Board
concluded
that
the
information
it
considered
with
respect
to
the
fund’s
performance,
as
well
as
the
other
factors
considered
at
the
Meeting,
supported
the
Board’s
approval
of
the
continuation
of
the
Advisory
Contract.
Costs,
Benefits,
Profits,
and
Economies
of
Scale
The
Board
reviewed
detailed
information
regarding
the
revenues
received
by
the
Adviser
under
the
Advisory
Contract
and
other
direct
and
indirect
benefits
that
the
Adviser
(and
its
affiliates)
may
have
realized
from
its
relationship
with
the
fund.
In
considering
soft-dollar
arrangements
pursuant
to
which
research
may
be
received
from
broker-dealers
that
execute
the
fund’s
portfolio
transactions,
the
Board
noted
that
during
2023
the
Adviser
paid
the
costs
of
research
services
for
all
client
accounts
that
it
advises,
including
the
T.
Rowe
Price
funds.
However,
effective
January
1,
2024,
the
Adviser
will
begin
using
brokerage
commissions
in
connection
with
certain
T.
Rowe
Price
funds’
securities
transactions
to
pay
for
research
when
permissible.
The
Board
received
information
on
the
estimated
costs
incurred
and
profits
realized
by
the
Adviser
from
managing
the
T.
Rowe
Price
funds.
The
Board
also
reviewed
estimates
of
the
profits
realized
from
managing
the
fund
in
particular,
and
the
Board
concluded
that
the
Adviser’s
profits
were
reasonable
in
light
of
the
services
provided
to
the
fund.
APPROVAL
OF
INVESTMENT
MANAGEMENT
AGREEMENT
(continued)
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
The
Board
also
considered
whether
the
fund
benefits
under
the
fee
levels
set
forth
in
the
Advisory
Contract
or
otherwise
from
any
economies
of
scale
realized
by
the
Adviser.
Under
the
Advisory
Contract,
the
fund
pays
a
fee
to
the
Adviser
for
investment
management
services
composed
of
two
components—a
group
fee
rate
based
on
the
combined
average
net
assets
of
most
of
the
T.
Rowe
Price
funds
(including
the
fund)
that
declines
at
certain
asset
levels
and
an
individual
fund
fee
rate
based
on
the
fund’s
average
daily
net
assets—and
the
fund
pays
its
own
expenses
of
operations.
The
group
fee
rate
decreases
as
total
T.
Rowe
Price
fund
assets
grow,
which
reduces
the
management
fee
rate
for
any
fund
that
has
a
group
fee
component
to
its
management
fee,
and
reflects
that
certain
resources
utilized
to
operate
the
fund
are
shared
with
other
T.
Rowe
Price
funds,
thus
allowing
shareholders
of
those
funds
to
share
potential
economies
of
scale.
The
fund’s
shareholders
also
benefit
from
potential
economies
of
scale
through
a
decline
in
certain
operating
expenses
as
the
fund
grows
in
size.
However,
the
fund
is
also
subject
to
contractual
expense
limitations
that
require
the
Adviser
to
waive
its
fees
and/or
bear
any
expenses
that
would
otherwise
cause
the
expenses
of
a
share
class
of
the
fund
to
exceed
a
certain
percentage
based
on
the
class’s
net
assets.
The
expense
limitations
mitigate
the
potential
for
an
increase
in
operating
expenses
above
a
certain
level
that
could
impact
shareholders.
In
addition,
the
Board
noted
that
the
fund
potentially
shares
in
indirect
economies
of
scale
through
the
Adviser’s
ongoing
investments
in
its
business
in
support
of
the
T.
Rowe
Price
funds,
including
investments
in
trading
systems,
technology,
and
regulatory
support
enhancements,
and
the
ability
to
possibly
negotiate
lower
fee
arrangements
with
third-party
service
providers.
The
Board
concluded
that
the
advisory
fee
structure
for
the
fund
provides
for
a
reasonable
sharing
of
benefits
from
any
economies
of
scale
with
the
fund’s
investors.
Fees
and
Expenses
The
Board
was
provided
with
information
regarding
industry
trends
in
management
fees
and
expenses.
Among
other
things,
the
Board
reviewed
data
for
peer
groups
that
were
compiled
by
Broadridge,
which
compared:
(i)
contractual
management
fees,
actual
management
fees,
nonmanagement
expenses,
and
total
expenses
of
the
Investor
Class
of
the
fund
with
a
group
of
competitor
funds
selected
by
Broadridge
(Expense
Group)
and
(ii)
actual
management
fees,
nonmanagement
expenses,
and
total
expenses
of
the
Investor
Class
of
the
fund
with
a
broader
set
of
funds
within
the
Lipper
investment
classification
(Expense
Universe).
The
Board
considered
the
fund’s
contractual
management
fee
rate,
actual
management
fee
rate
(which
reflects
the
management
fees
actually
received
from
the
fund
by
the
Adviser
after
any
applicable
waivers,
reductions,
or
reimbursements),
operating
expenses,
and
total
expenses
(which
reflect
the
net
total
expense
ratio
of
the
APPROVAL
OF
INVESTMENT
MANAGEMENT
AGREEMENT
(continued)
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
fund
after
any
waivers,
reductions,
or
reimbursements)
in
comparison
with
the
information
for
the
Broadridge
peer
groups.
Broadridge
generally
constructed
the
peer
groups
by
seeking
the
most
comparable
funds
based
on
similar
investment
classifications
and
objectives,
expense
structure,
asset
size,
and
operating
components
and
attributes
and
ranked
funds
into
quintiles,
with
the
first
quintile
representing
the
funds
with
the
lowest
relative
expenses
and
the
fifth
quintile
representing
the
funds
with
the
highest
relative
expenses.
The
information
provided
to
the
Board
indicated
that
the
fund’s
contractual
management
fee
ranked
in
the
first
quintile
(Expense
Group),
the
fund’s
actual
management
fee
rate
ranked
in
the
third
quintile
(Expense
Group
and
Expense
Universe),
and
the
fund’s
total
expenses
ranked
in
the
fifth
quintile
(Expense
Group)
and
fourth
quintile
(Expense
Universe).
The
Board
also
reviewed
the
fee
schedules
for
other
investment
portfolios
with
similar
mandates
that
are
advised
or
subadvised
by
the
Adviser
and
its
affiliates,
including
separately
managed
accounts
for
institutional
and
individual
investors;
subadvised
funds;
and
other
sponsored
investment
portfolios,
including
collective
investment
trusts
and
pooled
vehicles
organized
and
offered
to
investors
outside
the
United
States.
Management
provided
the
Board
with
information
about
the
Adviser’s
responsibilities
and
services
provided
to
subadvisory
and
other
institutional
account
clients,
including
information
about
how
the
requirements
and
economics
of
the
institutional
business
are
fundamentally
different
from
those
of
the
proprietary
mutual
fund
business.
The
Board
considered
information
showing
that
the
Adviser’s
mutual
fund
business
is
generally
more
complex
from
a
business
and
compliance
perspective
than
its
institutional
account
business
and
considered
various
relevant
factors,
such
as
the
broader
scope
of
operations
and
oversight,
more
extensive
shareholder
communication
infrastructure,
greater
asset
flows,
heightened
business
risks,
and
differences
in
applicable
laws
and
regulations
associated
with
the
Adviser’s
proprietary
mutual
fund
business.
In
assessing
the
reasonableness
of
the
fund’s
management
fee
rate,
the
Board
considered
the
differences
in
the
nature
of
the
services
required
for
the
Adviser
to
manage
its
mutual
fund
business
versus
managing
a
discrete
pool
of
assets
as
a
subadviser
to
another
institution’s
mutual
fund
or
for
an
institutional
account
and
that
the
Adviser
generally
performs
significant
additional
services
and
assumes
greater
risk
in
managing
the
fund
and
other
T.
Rowe
Price
funds
than
it
does
for
institutional
account
clients,
including
subadvised
funds.
On
the
basis
of
the
information
provided
and
the
factors
considered,
the
Board
concluded
that
the
fees
paid
by
the
fund
under
the
Advisory
Contract
are
reasonable.
APPROVAL
OF
INVESTMENT
MANAGEMENT
AGREEMENT
(continued)
T.
ROWE
PRICE
California
Tax-Free
Bond
Fund
Approval
of
the
Advisory
Contract
As
noted,
the
Board
approved
the
continuation
of
the
Advisory
Contract.
No
single
factor
was
considered
in
isolation
or
to
be
determinative
to
the
decision.
Rather,
the
Board
concluded,
in
light
of
a
weighting
and
balancing
of
all
factors
considered,
that
it
was
in
the
best
interests
of
the
fund
and
its
shareholders
for
the
Board
to
approve
the
continuation
of
the
Advisory
Contract
(including
the
fees
to
be
charged
for
services
thereunder).
APPROVAL
OF
INVESTMENT
MANAGEMENT
AGREEMENT
(continued)
100
East
Pratt
Street
Baltimore,
MD
21202
T.
Rowe
Price
Investment
Services,
Inc.
Call
1-800-225-5132
to
request
a
prospectus
or
summary
prospectus;
each
includes
investment
objectives,
risks,
fees,
expenses,
and
other
information
that
you
should
read
and
consider
carefully
before
investing.
F80-051
10/24
Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.
Not applicable.
Item 9. Proxy Disclosures for Open-End Management Investment Companies.
Not applicable.
Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.
Remuneration paid to Directors is included in Item 7 of this Form N-CSR.
Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.
If applicable, see Item 7.
Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 13. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 15. Submission of Matters to a Vote of Security Holders.
There has been no change to the procedures by which shareholders may recommend nominees to the registrant’s board of directors.
Item 16. Controls and Procedures.
(a) The registrant’s principal executive officer and principal financial officer have evaluated the registrant’s disclosure controls and procedures within 90 days of this filing and have concluded that the registrant’s disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized, and reported timely.
(b) The registrant’s principal executive officer and principal financial officer are aware of no change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 18. Recovery of Erroneously Awarded Compensation.
Not applicable.
Item 19. Exhibits.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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| T. Rowe Price State Tax-Free Funds, Inc. |
| By |
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/s/ David Oestreicher |
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David Oestreicher |
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Principal Executive Officer |
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| Date |
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October 18, 2024 |
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
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| By |
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/s/ David Oestreicher |
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David Oestreicher |
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Principal Executive Officer |
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| Date |
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October 18, 2024 |
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| By |
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/s/ Alan S. Dupski |
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Alan S. Dupski |
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Principal Financial Officer |
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| Date |
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October 18, 2024 |
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