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: 811-03055
T. Rowe Price Tax-Exempt Money Fund, 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 29
Date of reporting
period: February 29, 2024
Item 1. Reports to Shareholders
(a) Report pursuant to Rule 30e-1
Highlights
and
Market
Commentary
Management’s
Discussion
of
Fund
Performance
Performance
and
Expenses
Financial
Highlights
Portfolio
of
Investments
Financial
Statements
and
Notes
Additional
Fund
Information
Tax-Free
Funds
For
more
insights
from
T.
Rowe
Price
investment
professionals,
go
to
troweprice.com
.
T.
ROWE
PRICE
Tax-Free
Funds
HIGHLIGHTS
Throughout
the
majority
of
the
trailing
one-year
period,
municipal
bonds
traded
lower
against
the
backdrop
of
rising
Treasury
yields
and
outflows
from
municipal
bond
mutual
funds.
However,
Treasury
yields
fell
sharply
and
risk
sentiment
improved
in
the
final
two
months
of
2023,
leading
to
sharp
drops
in
municipal
bond
yields.
T.
Rowe
Price’s
tax-free
bond
funds
posted
gains.
The
majority
of
the
funds
outperformed
their
respective
Bloomberg
benchmarks,
while
performance
versus
their
Lipper
peer
group
averages
was
more
mixed.
The
Tax-Exempt
Money
Fund
also
generated
positive
returns
but
lagged
its
Lipper
benchmark.
We
continued
to
favor
bonds
from
health
care
issuers,
particularly
those
with
strong
balance
sheets
and
effective
management
teams.
While
we
expect
hospitals’
financial
performance
to
remain
challenged
in
the
year
ahead,
we
are
encouraged
by
fundamental
trends
within
the
subsector.
In
addition,
labor
inflation
seems
to
be
cooling,
and
the
use
and
hourly
cost
of
contract
labor
have
declined,
which
we
view
as
potential
drivers
of
further
margin
improvement
for
hospital
operators.
The
backdrop
of
higher
yields
and
generally
solid
fundamentals
should,
in
our
view,
draw
investors
back
to
the
municipal
market
in
the
months
and
years
ahead.
While
flows
to
the
asset
class
recently
flipped
to
net
positive
as
inflows
to
municipal
bond
mutual
funds
reemerged,
we
acknowledge
that
bouts
of
outflows
may
persist
until
interest
rate
volatility
shows
a
more
sustained
moderation.
Log
in
to
your
account
at
troweprice.com
for
more
information.
*
An
account
service
fee
will
be
charged
annually
for
each
T.
Rowe
Price
mutual
fund
account
unless
you
meet
criteria
for
a
fee
waiver.
Go
to
troweprice.com/personal-investing/help/fees-and-
minimums.html
to
learn
more
about
this
account
service
fee,
including
other
ways
to
waive
it.
T.
ROWE
PRICE
Tax-Free
Funds
Market
Commentary
Dear
Shareholder
Global
stock
and
bond
indexes
were
broadly
positive
during
your
fund’s
fiscal
year,
the
12-month
period
ended
February 29,
2024,
as
the
U.S.
economy
remained
healthy
despite
tighter
monetary
policy.
Technology
companies
benefited
from
investor
enthusiasm
for
artificial
intelligence
developments
and
led
the
equity
rally,
while
fixed
income
benchmarks
delivered
positive
results
even
though
there
were
headwinds
from
rising
longer-term
interest
rates.
The
S&P
500
Index,
Nasdaq
Composite
Index,
and
Dow
Jones
Industrial
Average
all
reached
record
highs
during
the
period.
Growth
stocks
outperformed
value
shares,
and
developed
market
stocks
generally
outpaced
their
emerging
markets
counterparts.
Within
the
S&P
500,
the
information
technology,
communication
services,
and
consumer
discretionary
sectors
were
all
lifted
by
the
tech
rally
and
recorded
significant
gains.
Conversely,
the
defensive
utilities
sector
had
the
weakest
returns.
Meanwhile,
the
financials
sector
bounced
back
from
the
failure
of
three
large
regional
banks
in
the
spring
of
2023
and
produced
solid
results
in
the
second
half
of
the
period.
The
U.S.
economy
was
the
strongest
among
the
major
markets.
Jobs
growth
remained
solid
over
the
12-month
period,
helping
to
fuel
consumer
spending.
Corporate
fundamentals
were
also
broadly
supportive.
Year-over-year
earnings
growth
contracted
in
the
first
half
of
2023,
but
earnings
rebounded
in
the
third
and
fourth
quarters.
Markets
remained
resilient
despite
a
debt
ceiling
standoff
in
the
U.S.,
the
outbreak
of
war
in
the
Middle
East,
the
continuing
conflict
between
Russia
and
Ukraine,
and
a
sluggish
economic
recovery
in
China.
Inflation,
as
measured
by
the
consumer
price
index,
fell
from
6.0%
to
3.1%
by
the
end
of
the
period
but
remained
above
the
Federal
Reserve’s
long-term
2%
goal.
In
response
to
the
above-target
inflation
readings,
the
Fed
raised
its
short-term
lending
benchmark
rate
to
a
target
range
of
5.25%
to
5.50%
in
July,
the
highest
level
since
March
2001,
but
then
held
rates
steady
over
the
remainder
of
the
period.
At
its
final
meeting
of
the
period,
in
late
January,
the
central
bank
removed
language
from
its
post-meeting
statement
that
pointed
to
additional
policy
tightening,
but
subsequent
communications
from
Fed
Chair
Jerome
Powell
in
February
indicated
that
policymakers
are
in
no
hurry
to
begin
cutting
rates.
U.S.
Treasury
yields
were
volatile
during
the
period
as
investors
adjusted
their
expectations
for
the
path
of
monetary
policy.
After
starting
the
period
at
3.92%,
the
benchmark
10-year
Treasury
note
yield
briefly
reached
5.00%
in
October
T.
ROWE
PRICE
Tax-Free
Funds
for
the
first
time
since
late
2007
before
falling
back
to
3.88%
by
the
end
of
2023.
However,
more
hawkish
Fed
communications
in
early
2024
pressured
Treasury
bond
prices,
driving
the
10-year
yield
back
up
to
4.25%
by
period-end.
Municipal
bonds
outperformed
Treasuries
during
the
period,
supported
by
new
issuance
levels
that
remained
below
longer-term
averages.
The
sector
continued
to
see
outflows
in
2023
but
at
a
significantly
lower
level
than
in
2022.
Elsewhere
in
the
fixed
income
market,
high
yield
corporate
bonds
produced
strong
returns,
supported
by
the
higher
coupons
that
have
become
available
since
the
Fed
began
hiking
rates
about
two
years
ago
as
well
as
by
increasing
hopes
that
the
economy
might
be
able
to
avoid
a
recession.
Global
economies
and
markets
showed
surprising
resilience
in
2023,
but
considerable
uncertainty
remains
as
we
look
ahead.
Geopolitical
events,
the
path
of
monetary
policy,
and
the
impact
of
the
Fed’s
rate
hikes
on
the
economy
all
raise
the
potential
for
additional
volatility.
We
believe
this
environment
makes
skilled
active
management
a
critical
tool
for
identifying
risks
and
opportunities,
and
our
investment
teams
will
continue
to
use
fundamental
research
to
help
identify
securities
that
can
add
value
to
your
portfolio
over
the
long
term.
Thank
you
for
your
continued
confidence
in
T.
Rowe
Price.
Sincerely,
Robert
Sharps
CEO
and
President
T.
ROWE
PRICE
Tax-Free
Funds
Management’s
Discussion
of
Fund
Performance
TAX-EXEMPT
MONEY
FUND
TAX-FREE
SHORT-INTERMEDIATE
FUND
INVESTMENT
OBJECTIVE
The
fund
seeks
to
provide,
consistent
with
modest
price
fluctuation,
a
high
level
of
income
exempt
from
federal
income
taxes
by
investing
primarily
in
short-
and
intermediate-term
investment-grade
municipal
securities.
FUND
COMMENTARY
How
did
the
fund
perform
in
the
past 12
months?
The
Tax-Free
Short-Intermediate
Fund
returned
3.85%
over
the
12
months
ended
February
29,
2024.
The
fund
outperformed
its
Bloomberg
benchmark
and
performed
in
line
with
its
Lipper
peer
group
average.
(Results
for
Advisor
and
I
Class
shares
varied,
reflecting
their
different
fee
structures.
Past
performance
cannot
guarantee
future
results
.)
PORTFOLIO
DIVERSIFICATION
Tax-Exempt
Money
Fund
Percent
of
Net
Assets
8/31/23
2/29/24
Health
Care
29.9%
28.6%
Education
13.5
14.3
Housing
9.6
14.2
General
Obligation-Local
14.7
12.6
Water
and
Sewer
6.4
5.9
General
Obligation-State
5.2
5.9
Electric
4.9
5.5
Transportation
5.0
4.1
Other
Assets
10.8
8.9
Total
100.0%
100.0%
Historical
weightings
reflect
current
industry/sector
classifications.
T.
ROWE
PRICE
Tax-Free
Funds
What
factors
influenced
the
fund’s
performance?
Throughout
the
majority
of
the
trailing
one-year
period,
municipal
bonds
traded
lower
against
the
backdrop
of
rising
Treasury
yields
and
outflows
from
municipal
bond
mutual
funds.
However,
Treasury
yields
fell
sharply
and
risk
sentiment
improved
in
the
final
two
months
of
2023,
leading
to
sharp
drops
in
municipal
bond
yields.
During
the
rally,
lower-rated
investment-grade
municipal
bonds
outpaced
higher
qualities,
and
high
yield
municipal
bonds
outperformed
investment-grade
municipal
bonds.
While
rising
Treasury
yields
weighed
on
the
asset
class
through
period-end,
supportive
technical
conditions
alleviated
some
upward
pressure
on
municipal
bond
yields,
and
the
asset
class
ended
the
period
with
strong
positive
total
returns.
Late
in
the
period,
the
municipal
market
experienced
net
positive
flows
after
a
sustained
period
of
outflows,
as
inflows
to
municipal
bond
mutual
funds
reemerged.
Allocations
at
the
broad
sector
level
contributed,
lifted
by
an
overweight
to
revenue
bonds
and
underweights
to
general
obligation
(GO)
and
prerefunded
bonds.
The
GOs
we
owned
were
largely
from
lower-rated
issuers—including
Puerto
Rico,
Illinois,
and
New
Jersey—that
we
viewed
as
having
potential
credit
upside.
Selection
among
state
GO
bonds
aided
relative
performance.
In
particular,
bonds
from
the
Commonwealth
of
Puerto
Rico
meaningfully
supported
relative
performance
amid
strong
economic
activity
driven
by
continued
federal
stimulus.
State
GOs
from
Illinois
also
outperformed
alongside
a
rating
upgrade
by
Fitch
in
November
from
BBB+
to
A-.
Security
selection
among
revenue
bonds
further
added
to
relative
gains,
led
upward
by
selection
decisions
in
the
dedicated
tax,
hospital,
and
airport
revenue
subsectors.
Conversely,
selection
among
prepaid
gas
revenue
bonds
hindered
relative
performance.
PERFORMANCE
COMPARISON
Total
Return
Periods
Ended
2/29/24
6
Months
12
Months
Tax-Free
Short-
Intermediate
Fund
–
.
2.63%
3.85%
Tax-Free
Short-
Intermediate
Fund–
.
Advisor
Class
2.45
3.33
Tax-Free
Short-
Intermediate
Fund–
.
I
Class
2.70
3.81
Bloomberg
1–5
Year
Blend
(1–6
Year
Maturity)
Index
2.64
3.71
Lipper
Short-Intermediate
Municipal
Debt
Funds
Average
2.88
3.89
T.
ROWE
PRICE
Tax-Free
Funds
Interest
rate
management
contributed
in
aggregate,
aided
by
the
portfolio’s
longer-than-benchmark
average-duration
profile—which
was
beneficial
as
municipal
bond
yields
ended
the
period
lower
across
most
of
the
curve—
and
the
income
generated
by
municipal
bond
coupon
payments.
However,
positioning
across
key
rates
negated
some
relative
gains.
How
is
the
fund
positioned?
While
2022’s
historic
sell-off
produced
disappointing
results
for
bondholders,
we
believe
it
returned
substantial
value
to
the
municipal
market
through
markedly
higher
yields
and
increased
credit
risk
compensation.
Throughout
the
trailing
one-year
period,
we
utilized
our
fundamental,
bottom-up
research
process
to
add
to
high-conviction
names
at
what
we
viewed
as
attractive
valuations,
and
our
allocation
to
revenue
bonds
ended
the
period
higher.
The
fund’s
overall
credit
quality
finished
the
one-year
period
unchanged;
however,
we
allowed
its
credit
quality
diversification
to
adjust
modestly
as
we
identified
opportunities
amid
the
volatile
market
environment.
The
fund’s
allocations
to
the
AAA
rating
bucket
increased
moderately,
while
its
allocation
to
the
BBB
rating
tier
decreased
slightly.
However,
we
maintained
a
structural
overweight
to
the
A
and
BBB
quality
tiers,
as
we
continued
to
believe
that
the
lower
end
of
the
investment-grade
spectrum
provides
ample
opportunities
to
earn
additional
risk-
adjusted
yield
over
time.
We
also
maintained
an
overweight
to
the
nonrated
tier,
where
we
believe
that
rigorous
credit
research
can
uncover
mispriced
or
overlooked
bonds.
Sources:
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
rating
agencies
differ,
the
highest
rating
is
applied
to
the
security.
If
a
rating
is
not
available,
the
security
is
classified
as
Not
Rated.
T.
Rowe
Price
uses
the
rating
of
the
underlying
investment
vehicle
to
determine
the
creditworthiness
of
credit
default
swaps.
The
fund
is
not
rated
by
any
agency.
CREDIT
QUALITY
DIVERSIFICATION
Tax-Free
Short-Intermediate
Fund
T.
ROWE
PRICE
Tax-Free
Funds
In
terms
of
interest
rate
management,
the
fund’s
duration
ended
the
period
neutral
to
the
benchmark’s
duration,
as
we
anticipate
rate
cuts
by
the
Fed
in
2024.
We
continued
to
migrate
away
from
bonds
with
shorter
call
provisions
as
well
as
into
lower
coupon
structures
in
an
attempt
to
improve
the
fund’s
ability
to
benefit
from
future
declines
in
municipal
bond
yields.
Our
structural,
out-of-benchmark
allocation
to
bonds
maturing
in
seven
to
10
years
or
more
remained
in
place.
Regarding
the
fund’s
positioning
across
sectors,
health
care
revenue
bonds—
namely,
those
from
hospitals
and
life
care
communities—remained
a
prominent
overweight
allocation.
Our
allocation
to
hospital
revenue
bonds
modestly
increased
over
the
period
as
encouraging
trends
in
fundamentals
bolstered
our
view
on
the
subsector.
In
addition,
labor
inflation
seems
to
be
cooling,
and
the
use
and
hourly
cost
of
contract
labor
have
declined,
which
we
view
as
potential
drivers
of
further
margin
improvement
for
hospital
operators.
Meanwhile,
the
fund’s
allocation
to
life
care
community
revenue
bonds
ended
the
year
roughly
flat.
We
maintain
sanguine
views
on
the
names
we
hold
but
are
cautious
toward
the
subsector
overall
due
to
changing
consumer
demand
and
increased
competition
from
for-profit
operators.
As
always,
we
continue
to
closely
monitor
our
investments
in
these
facilities,
favoring
names
with
strong
financial
metrics,
geographic
diversification,
and
skilled
management
teams.
Within
the
fund’s
allocation
to
GOs,
we
sold
a
state
GO
from
California
as
our
outlook
on
the
state
became
less
constructive
late
in
the
period.
Specifically,
the
state’s
projected
budget
deficit
through
its
fiscal
year
2025
outweighs
the
funds
held
in
its
general
purpose
reserves
by
a
wide
margin.
This
development,
coupled
with
projected
deficits
beyond
this
time
window
and
our
view
that
California
has
less
budget-cutting
levers
to
pull
than
it
has
in
the
past,
weighed
on
our
outlook,
particularly
when
considering
how
the
state
may
fare
in
future
recessionary
conditions.
What
is
portfolio
management’s
outlook?
We
still
expect
the
Federal
Reserve
to
cut
interest
rates
this
year,
but
we
agree
with
the
shift
in
market
consensus
that
occurred
in
February
and
now
anticipate
a
smaller
number
of
cuts
this
year
along
with
a
later
start
date.
We
don’t
foresee
a
recession
in
the
near
term
but,
in
our
view,
the
Fed
will
feel
cuts
are
justified
to
keep
real
(inflation-adjusted)
yields
from
increasing
too
much
as
inflation
decreases.
Despite
substantial
macroeconomic
headwinds,
the
municipal
bond
market’s
credit
fundamentals
remained
generally
strong
thanks
to
pandemic-era
federal
aid
and
improved
fiscal
management
by
some
of
the
most
challenged
issuers.
These
factors,
from
our
perspective,
should
help
buffer
credit
ratings
in
a
recession
if
one
transpires,
although
a
recession
is
not
our
base
case.
T.
ROWE
PRICE
Tax-Free
Funds
Regarding
market
technicals,
the
backdrop
of
higher
yields
and
generally
solid
fundamentals
should,
in
our
view,
draw
investors
back
to
the
municipal
market
in
the
months
and
years
ahead.
While
flows
to
the
asset
class
recently
flipped
to
net
positive
as
inflows
to
municipal
bond
mutual
funds
reemerged,
we
acknowledge
that
bouts
of
outflows
may
persist
until
interest
rate
volatility
shows
a
more
sustained
moderation.
Although
credit
spreads
have
tightened
and
currently
sit
near
their
long-term
averages,
we
believe
our
fundamental
research
process
positions
us
well
to
identify
and
capture
attractive
opportunities
across
our
investable
universe.
In
navigating
this
complex
investment
landscape,
we
are
taking
a
selective
approach
toward
bond
structures
and
maintaining
an
emphasis
on
bottom-up
credit
factors.
As
always,
we
are
striving
to
stay
risk
aware
and
disciplined
in
our
investment
process,
which
we
believe
will
serve
our
clients
well
over
time.
TAX-FREE
INCOME
FUND
INVESTMENT
OBJECTIVE
The
fund
seeks
to
provide
a
high
level
of
income
exempt
from
federal
income
taxes
by
investing
primarily
in
long-term
investment-grade
municipal
securities.
FUND
COMMENTARY
How
did
the
fund
perform
in
the
past 12
months?
The
Tax-Free
Income
Fund
returned
6.16%
over
the
12
months
ended
February
29,
2024,
and
outperformed
its
Bloomberg
benchmark
along
with
its
Lipper
peer
group
average.
(Results
for
Advisor
and
I
Class
shares
varied
modestly,
reflecting
their
different
fee
structures.
Past
performance
cannot
guarantee
future
results.
)
PERFORMANCE
COMPARISON
Total
Return
Periods
Ended
2/29/24
6
Months
12
Months
Tax-Free
Income
Fund
–
.
4.97%
6.16%
Tax-Free
Income
Fund–
.
Advisor
Class
4.79
5.80
Tax-Free
Income
Fund–
.
I
Class
4.89
6.11
Bloomberg
Municipal
Bond
Index
4.33
5.42
Lipper
General
&
Insured
Municipal
Debt
Funds
Average
4.65
5.80
T.
ROWE
PRICE
Tax-Free
Funds
What
factors
influenced
the
fund’s
performance?
Throughout
the
majority
of
the
trailing
one-year
period,
municipal
bonds
traded
lower
against
the
backdrop
of
rising
Treasury
yields
and
outflows
from
municipal
bond
mutual
funds.
However,
Treasury
yields
fell
sharply
and
risk
sentiment
improved
in
the
final
two
months
of
2023,
leading
to
sharp
drops
in
municipal
bond
yields.
During
the
rally,
lower-rated
investment-grade
municipal
bonds
outpaced
higher
qualities,
and
high
yield
municipal
bonds
outperformed
investment-grade
municipal
bonds.
While
rising
Treasury
yields
weighed
on
the
asset
class
through
period-end,
supportive
technical
conditions
alleviated
some
upward
pressure
on
municipal
bond
yields,
and
the
asset
class
ended
the
period
with
strong
positive
total
returns.
Late
in
the
period,
the
municipal
market
experienced
net
positive
flows
after
a
sustained
period
of
outflows,
as
inflows
to
municipal
bond
mutual
funds
reemerged.
Security
selection
among
revenue
bonds
helped
relative
performance,
led
upward
by
selection
decisions
in
the
dedicated
tax,
lease/appropriation,
water/sewer,
and
industrial
development
revenue/pollution
control
revenue
subsectors.
Selection
among
state
general
obligation
(GO)
bonds—and,
to
a
lesser
extent,
local
GOs—also
aided
relative
performance.
In
particular,
bonds
from
the
Commonwealth
of
Puerto
Rico
meaningfully
supported
relative
performance
amid
strong
economic
activity
driven
by
continued
federal
stimulus.
State
GOs
from
Illinois
also
outperformed
alongside
a
rating
upgrade
by
Fitch
in
November
from
BBB+
to
A-.
Conversely,
selection
among
public
power
and
transportation
revenue
bonds
related
to
various
transportation
authorities
and
marinas
hindered
relative
performance.
Allocation
decisions
within
the
revenue-backed
sector
were
constructive
in
aggregate.
Overweights
to
life
care
communities,
hospitals,
and
transportation
revenue
bonds
contributed,
as
did
an
underweight
to
the
water/sewer
revenue
subsector.
Allocations
at
the
broad
sector
level
further
added
to
relative
gains,
lifted
by
an
overweight
to
revenue
bonds
and
an
underweight
to
GO
bonds.
However,
an
underweight
to
housing
revenue
bonds
negated
some
relative
gains.
Interest
rate
management
contributed
in
aggregate,
aided
by
the
portfolio’s
longer-than-benchmark
average-duration
profile—which
was
beneficial
as
municipal
bond
yields
ended
the
period
lower
across
most
of
the
curve—and
the
income
generated
by
municipal
bond
coupon
payments.
Positioning
across
key
rates
hampered
relative
performance.
Specifically,
modest
overweights
to
longer-maturity
bonds
detracted
as
the
long
end
was
the
only
portion
of
the
municipal
yield
curve
to
end
the
period
slightly
higher.
T.
ROWE
PRICE
Tax-Free
Funds
How
is
the
fund
positioned?
While
2022’s
historic
sell-off
produced
disappointing
results
for
bondholders,
we
believe
it
returned
substantial
value
to
the
municipal
market
through
markedly
higher
yields
and
increased
credit
risk
compensation.
Throughout
the
trailing
one-year
period,
we
utilized
our
fundamental,
bottom-up
research
process
to
add
to
high-conviction
names
at
what
we
viewed
as
attractive
valuations,
and
our
allocation
to
revenue
bonds
ended
the
period
higher.
The
fund’s
overall
credit
quality
finished
the
one-year
period
unchanged;
however,
we
allowed
its
credit
quality
diversification
to
adjust
modestly
as
we
identified
opportunities
amid
the
volatile
market
environment.
The
fund’s
allocations
to
the
AAA
and
AA
rating
buckets
increased
modestly,
while
its
allocation
to
the
A
rating
tier
decreased
slightly.
That
said,
the
BBB
and
A
quality
tiers
continued
to
represent
strategic
overweights
for
the
fund,
as
we
continued
to
believe
that
these
segments
offer
ample
opportunities
to
earn
additional
risk-adjusted
yield
over
time.
In
terms
of
interest
rate
management,
the
fund’s
duration
ended
the
period
above
the
benchmark’s
duration,
as
we
anticipate
rate
cuts
by
the
Fed
in
2024.
The
fund’s
allocation
to
municipal
bonds
maturing
in
20
years
or
more
increased
over
the
period
as
valuations
screened
attractively
in
the
long
end
of
the
curve.
Regarding
the
fund’s
positioning
across
sectors,
health
care
revenue
bonds—
namely,
those
from
hospitals
and
life
care
communities—remained
a
prominent
overweight
allocation.
However,
we
modestly
reduced
our
allocation
to
hospital
and
life
care
revenue
bonds
over
the
period
alongside
headwinds
from
staffing
shortages
and
inflationary
pressures
on
labor
and
medical
supply
costs.
While
we
expect
hospitals’
financial
performance
to
remain
challenged
in
the
year
Sources:
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
rating
agencies
differ,
the
highest
rating
is
applied
to
the
security.
If
a
rating
is
not
available,
the
security
is
classified
as
Not
Rated.
T.
Rowe
Price
uses
the
rating
of
the
underlying
investment
vehicle
to
determine
the
creditworthiness
of
credit
default
swaps.
The
fund
is
not
rated
by
any
agency.
CREDIT
QUALITY
DIVERSIFICATION
Tax-Free
Income
Fund
T.
ROWE
PRICE
Tax-Free
Funds
ahead,
we
are
encouraged
by
fundamental
trends
within
the
subsector.
In
addition,
labor
inflation
seems
to
be
cooling,
and
the
use
and
hourly
cost
of
contract
labor
have
declined,
which
we
view
as
potential
drivers
of
further
margin
improvement
for
hospital
operators.
The
fund’s
allocation
to
housing
revenue
bonds
increased
over
the
period,
largely
due
to
our
investments
in
planned
amortization
class
(PAC)
bonds.
While
PAC
bonds
have
long-stated
maturities—typically
around
30
years—
their
effective
maturities
are
generally
around
five
years
since
they
pay
down
according
to
a
defined
schedule
of
principal
payments,
which
is
guaranteed
within
a
specified
range
of
prepayment
speeds.
PAC
bonds
offer
a
credit
spread
and
yield
pickup
relative
to
other
highly
rated
bonds
in
the
front
end
of
the
curve
and,
therefore,
have
provided
attractive
investment
opportunities,
in
our
view.
(Municipal
bond
credit
spreads
are
a
measure
of
the
additional
yield
offered
by
bonds
that
have
additional
credit
risk
relative
to
comparable
AAA
rated
municipal
bonds.)
Conversely,
the
fund’s
allocation
to
the
airport
revenue
subsector
ended
the
period
lower.
In
our
view,
the
airport
revenue
subsector
has
continued
to
show
resilience
as
enplanements
fully
recovered
from
the
pandemic-induced
drawdown.
However,
airports
no
longer
screened
attractively
relative
to
other
A
rated
sectors.
What
is
portfolio
management’s
outlook?
We
still
expect
the
Federal
Reserve
to
cut
interest
rates
this
year,
but
we
agree
with
the
shift
in
market
consensus
that
occurred
in
February
and
now
anticipate
a
smaller
number
of
cuts
this
year
along
with
a
later
start
date.
We
don’t
foresee
a
recession
in
the
near
term
but,
in
our
view,
the
Fed
will
feel
cuts
are
justified
to
keep
real
(inflation-adjusted)
yields
from
increasing
too
much
as
inflation
decreases.
Despite
substantial
macroeconomic
headwinds,
the
municipal
bond
market’s
credit
fundamentals
remained
generally
strong
thanks
to
pandemic-era
federal
aid
and
improved
fiscal
management
by
some
of
the
most
challenged
issuers.
These
factors,
from
our
perspective,
should
help
buffer
credit
ratings
in
a
recession
if
one
transpires,
although
a
recession
is
not
our
base
case.
Regarding
market
technicals,
the
backdrop
of
higher
yields
and
generally
solid
fundamentals
should,
in
our
view,
draw
investors
back
to
the
municipal
market
in
the
months
and
years
ahead.
While
flows
to
the
asset
class
recently
flipped
to
net
positive
as
inflows
to
municipal
bond
mutual
funds
reemerged,
we
acknowledge
that
bouts
of
outflows
may
persist
until
interest
rate
volatility
shows
a
more
sustained
moderation.
T.
ROWE
PRICE
Tax-Free
Funds
Although
credit
spreads
have
tightened
and
currently
sit
near
their
long-term
averages,
we
believe
our
fundamental
research
process
positions
us
well
to
identify
and
capture
attractive
opportunities
across
our
investable
universe.
In
navigating
this
complex
investment
landscape,
we
are
taking
a
selective
approach
toward
bond
structures
and
maintaining
an
emphasis
on
bottom-up
credit
factors.
As
always,
we
are
striving
to
stay
risk
aware
and
disciplined
in
our
investment
process,
which
we
believe
will
serve
our
clients
well
over
time.
TAX-FREE
HIGH
YIELD FUND
INVESTMENT
OBJECTIVE
The
fund
seeks
to
provide
a
high
level
of
income
exempt
from
federal
income
taxes
by
investing
primarily
in
long-term
low-
to
upper-medium-grade
municipal
securities.
FUND
COMMENTARY
How
did
the
fund
perform
in
the
past 12
months?
The
Tax-Free
High
Yield
Fund
returned
7.05%
for
the
12
months
ended
February
29,
2024,
outperforming
its
Bloomberg
benchmark
and
its
Lipper
peer
group
average.
(Results
for
Advisor
and
I
Class
shares
varied
modestly,
reflecting
their
different
fee
structures.
Past
performance
cannot
guarantee
future
results.
)
What
factors
influenced
the
fund’s
performance?
Throughout
the
majority
of
the
trailing
one-year
period,
municipal
bonds
traded
lower
against
the
backdrop
of
rising
Treasury
yields
and
outflows
from
municipal
bond
mutual
funds.
However,
Treasury
yields
fell
sharply
and
risk
sentiment
improved
in
the
final
two
months
of
2023,
leading
to
sharp
drops
in
municipal
bond
yields.
During
the
rally,
lower-rated
investment-grade
municipal
bonds
outpaced
higher
qualities,
and
high
yield
municipal
bonds
outperformed
investment-grade
municipal
bonds.
While
rising
Treasury
yields
weighed
on
PERFORMANCE
COMPARISON
Total
Return
Periods
Ended
2/29/24
6
Months
12
Months
Tax-Free
High
Yield
Fund
–
.
5.67%
7.05%
Tax-Free
High
Yield
Fund–
.
Advisor
Class
5.36
6.65
Tax-Free
High
Yield
Fund–
.
I
Class
5.64
7.07
Bloomberg
65%
High-
Grade/35%
High-Yield
Index
4.86
6.42
Lipper
High
Yield
Municipal
Debt
Funds
Average
5.55
6.74
T.
ROWE
PRICE
Tax-Free
Funds
the
asset
class
through
period-end,
supportive
technical
conditions
alleviated
some
upward
pressure
on
municipal
bond
yields,
and
the
asset
class
ended
the
period
with
strong
positive
total
returns.
Late
in
the
period,
the
municipal
market
experienced
net
positive
flows
after
a
sustained
period
of
outflows,
as
inflows
to
municipal
bond
mutual
funds
reemerged.
Security
selection
among
state
and
local
general
obligation
(GO)
bonds
helped
relative
performance.
In
particular,
bonds
from
the
Commonwealth
of
Puerto
Rico
meaningfully
supported
relative
performance
amid
strong
economic
activity
driven
by
continued
federal
stimulus.
State
GOs
from
Illinois
also
outperformed
alongside
a
rating
upgrade
by
Fitch
in
November
from
BBB+
to
A-.
Selection
among
revenue
bonds
further
added
to
relative
gains,
led
upward
by
selection
decisions
in
the
dedicated
tax,
ground
transportation,
lease/appropriation,
water/sewer,
and
industrial
development
revenue/pollution
control
revenue
(IDR/PCR)
subsectors.
Selection
within
the
public
power
revenue
subsector
negated
some
relative
gains,
dragged
down
by
holdings
of
bonds
issued
by
Puerto
Rico
Electric
Power
Authority
(PREPA).
The
bonds
depreciated
substantially
near
the
end
of
June
2023
after
the
bankruptcy
judge
ruled
that
bondholder
claims
were
limited
to
around
30%
of
outstanding
defaulted
PREPA
revenue
bond
principal
value,
which
was
well
below
market
expectations.
The
situation
is
still
evolving,
and
we
continue
to
evaluate
and
monitor
any
PREPA-related
developments
closely.
Interest
rate
management
contributed
in
aggregate,
aided
by
the
portfolio’s
longer-than-benchmark
average-duration
profile—which
was
beneficial
as
municipal
bond
yields
ended
the
period
lower
across
most
of
the
curve—and
the
income
generated
by
municipal
bond
coupon
payments.
Positioning
across
key
rates
hampered
relative
performance.
Specifically,
modest
overweights
to
longer-maturity
bonds
detracted
as
the
long
end
was
the
only
portion
of
the
municipal
yield
curve
to
end
the
period
slightly
higher.
Allocations
at
the
broad
sector
level
were
constructive
in
aggregate,
aided
by
an
overweight
to
revenue
bonds
and
an
underweight
to
GO
bonds.
Allocation
decisions
within
the
revenue-backed
sector
further
added
to
relative
gains.
Underweights
to
housing,
water/sewer,
higher
education,
and
public
power
revenue
bonds
contributed,
while
an
underweight
to
dedicated
tax
and
an
overweight
to
life
care
community
revenue
bonds
hindered
relative
performance.
T.
ROWE
PRICE
Tax-Free
Funds
How
is
the
fund
positioned?
While
2022’s
historic
sell-off
produced
disappointing
results
for
bondholders,
we
believe
it
returned
substantial
value
to
the
municipal
market
through
markedly
higher
yields
and
increased
credit
risk
compensation.
Throughout
the
trailing
one-year
period,
we
utilized
our
fundamental,
bottom-up
research
process
to
add
to
high-conviction
names
at
what
we
viewed
as
attractive
valuations,
and
our
allocation
to
revenue
bonds
ended
the
period
higher.
The
fund’s
overall
credit
quality
finished
the
one-year
period
unchanged;
however,
we
allowed
its
credit
quality
diversification
to
adjust
modestly
as
we
identified
opportunities
amid
the
volatile
market
environment.
The
fund’s
allocation
to
the
BB
rating
bucket
increased
modestly,
while
its
allocations
to
the
A
and
B
rating
tiers
decreased
slightly.
The
BBB
and
BB
rating
categories
remained
key
overweight
exposures
for
the
fund,
as
we
continued
to
believe
that
these
lower-quality
segments
present
ample
opportunities
to
uncover
additional
risk-adjusted
yield
through
diligent,
bottom-up
credit
analysis.
We
also
maintained
an
overweight
to
the
nonrated
tier,
where
we
believe
that
rigorous
credit
research
can
uncover
mispriced
or
overlooked
bonds.
In
terms
of
interest
rate
management,
the
fund’s
duration
ended
the
period
above
the
benchmark’s
duration,
as
we
anticipate
rate
cuts
by
the
Fed
in
2024.
The
fund’s
allocation
to
bonds
maturing
in
20
years
or
more
remained
a
significant
overweight
relative
to
the
benchmark.
Regarding
the
fund’s
positioning
across
sectors,
we
continued
to
overweight
the
IDR/PCR
subsector,
and
our
allocation
to
the
sector
ended
the
period
slightly
higher.
In
addition
to
offering
above-average
yields,
we
believe
this
area
of
the
market
provides
diversification
benefits
for
municipal
investors
due
to
its
corporate-backed
nature.
When
approaching
potential
investments
in
this
Sources:
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
rating
agencies
differ,
the
highest
rating
is
applied
to
the
security.
If
a
rating
is
not
available,
the
security
is
classified
as
Not
Rated.
T.
Rowe
Price
uses
the
rating
of
the
underlying
investment
vehicle
to
determine
the
creditworthiness
of
credit
default
swaps.
The
fund
is
not
rated
by
any
agency.
CREDIT
QUALITY
DIVERSIFICATION
Tax-Free
High
Yield
Fund
T.
ROWE
PRICE
Tax-Free
Funds
subsector,
we
frequently
exchange
research
insights
with
T.
Rowe
Price’s
taxable
fixed
income
and
equity
analysts
in
an
effort
to
deepen
our
understanding
of
the
bonds’
underlying
guarantors
while
aiming
to
avoid
the
most
speculative
projects
in
the
space.
Among
corporate-backed
market
segments,
we
continued
to
favor
prepaid
gas
revenue
bonds.
The
fund
continued
to
have
a
modest
allocation
to
tobacco-securitized
bonds.
However,
we
remain
cautious
on
the
sector
over
the
long
run
based
on
our
view
that
many
of
these
issuers
face
fundamental
credit
challenges
and
substantial
regulatory
headwinds.
Among
tobacco-securitized
credits,
we
maintain
a
strong
preference
for
comparatively
higher-quality
deal
structures
that,
in
our
assessment,
are
fundamentally
sound
in
nature.
What
is
portfolio
management’s
outlook?
We
still
expect
the
Federal
Reserve
to
cut
interest
rates
this
year,
but
we
agree
with
the
shift
in
market
consensus
that
occurred
in
February
and
now
anticipate
a
smaller
number
of
cuts
this
year
along
with
a
later
start
date.
We
don’t
foresee
a
recession
in
the
near
term
but,
in
our
view,
the
Fed
will
feel
cuts
are
justified
to
keep
real
(inflation-adjusted)
yields
from
increasing
too
much
as
inflation
decreases.
Despite
substantial
macroeconomic
headwinds,
the
municipal
bond
market’s
credit
fundamentals
remained
generally
strong
thanks
to
pandemic-era
federal
aid
and
improved
fiscal
management
by
some
of
the
most
challenged
issuers.
These
factors,
from
our
perspective,
should
help
buffer
credit
ratings
in
a
recession
if
one
transpires,
although
a
recession
is
not
our
base
case.
Regarding
market
technicals,
the
backdrop
of
higher
yields
and
generally
solid
fundamentals
should,
in
our
view,
draw
investors
back
to
the
municipal
market
in
the
months
and
years
ahead.
While
flows
to
the
asset
class
recently
flipped
to
net
positive
as
inflows
to
municipal
bond
mutual
funds
reemerged,
we
acknowledge
that
bouts
of
outflows
may
persist
until
interest
rate
volatility
shows
a
more
sustained
moderation.
Although
credit
spreads
have
tightened
and
currently
sit
near
their
long-term
averages,
we
believe
our
fundamental
research
process
positions
us
well
to
identify
and
capture
attractive
opportunities
across
our
investable
universe.
In
navigating
this
complex
investment
landscape,
we
are
taking
a
selective
approach
toward
bond
structures
and
maintaining
an
emphasis
on
bottom-up
credit
factors.
As
always,
we
are
striving
to
stay
risk
aware
and
disciplined
in
our
investment
process,
which
we
believe
will
serve
our
clients
well
over
time.
T.
ROWE
PRICE
Tax-Free
Funds
INTERMEDIATE
TAX-FREE
HIGH
YIELD FUND
INVESTMENT
OBJECTIVE
The
fund
seeks
to
provide
a
high
level
of
income
exempt
from
federal
income
taxes.
FUND
COMMENTARY
How
did
the
fund
perform
in
the
past 12
months?
The
Intermediate
Tax-Free
High
Yield
Fund
returned
5.39%
for
the
12
months
ended
February
29,
2024.
The
fund
performed
in
line
with
its
Bloomberg
benchmark
but
underperformed
the
average
return
of
its
Lipper
peer
group,
which
encompasses
funds
with
much
longer
maturity
and
duration
constraints.
(Results
for
I
Class
shares
varied,
reflecting
their
different
fee
structure.
Past
performance
cannot
guarantee
future
results.
)
What
factors
influenced
the
fund’s
performance?
Throughout
the
majority
of
the
trailing
one-year
period,
municipal
bonds
traded
lower
against
the
backdrop
of
rising
Treasury
yields
and
outflows
from
municipal
bond
mutual
funds.
However,
Treasury
yields
fell
sharply
and
risk
sentiment
improved
in
the
final
two
months
of
2023,
leading
to
sharp
drops
in
municipal
bond
yields.
During
the
rally,
lower-
rated
investment-grade
municipal
bonds
outpaced
higher
qualities,
and
high
yield
municipal
bonds
outperformed
investment-
grade
municipal
bonds.
While
rising
Treasury
yields
weighed
on
the
asset
class
through
period-end,
supportive
technical
conditions
alleviated
some
upward
pressure
on
municipal
bond
yields,
and
the
asset
class
ended
the
period
with
strong
positive
total
returns.
Late
in
the
period,
the
municipal
market
experienced
net
positive
flows
after
a
sustained
period
of
outflows,
as
inflows
to
municipal
bond
mutual
funds
reemerged.
PERFORMANCE
COMPARISON
Total
Return
Periods
Ended
2/29/24
6
Months
12
Months
Intermediate
Tax-Free
High
Yield
Fund
–
.
3.99%
5.39%
Intermediate
Tax-Free
High
Yield
Fund–
.
I
Class
4.01
5.55
Bloomberg
65%
High-
Grade/35%
High-Yield
Intermediate
Competitive
(1–17
Year
Maturity)
Index
3.96
5.40
Lipper
High
Yield
Municipal
Debt
Funds
Average
5.55
6.74
T.
ROWE
PRICE
Tax-Free
Funds
Selection
among
revenue
bonds
helped
relative
performance,
led
upward
by
selection
decisions
in
the
dedicated
tax,
lease/appropriation,
water/sewer,
and
industrial
development
revenue/pollution
control
revenue
(IDR/PCR)
subsectors.
Selection
among
state
and
local
general
obligation
(GO)
bonds
further
added
to
relative
gains.
In
particular,
bonds
from
the
Commonwealth
of
Puerto
Rico
meaningfully
supported
relative
performance
amid
strong
economic
activity
driven
by
continued
federal
stimulus.
Selection
within
the
public
power
revenue
subsector
negated
some
relative
gains,
dragged
down
by
holdings
of
bonds
issued
by
Puerto
Rico
Electric
Power
Authority
(PREPA).
The
bonds
depreciated
substantially
near
the
end
of
June
2023
after
the
bankruptcy
judge
ruled
that
bondholder
claims
were
limited
to
around
30%
of
outstanding
defaulted
PREPA
revenue
bond
principal
value,
which
was
well
below
market
expectations.
The
situation
is
still
evolving,
and
we
continue
to
evaluate
and
monitor
any
PREPA-related
developments
closely.
Allocations
within
the
revenue-backed
sector
hindered
relative
performance,
dragged
lower
by
overweights
to
hospital
and
IDR/PCR
bonds
and
an
underweight
to
the
dedicated
tax
revenue
subsector.
Conversely,
overweights
to
student
housing
and
life
care
community
revenue
bonds
and
underweights
to
the
higher
education
and
public
power
revenue
subsectors
contributed.
Allocations
at
the
broad
sector
level
had
a
neutral
impact
on
relative
performance.
Interest
rate
management
detracted
modestly
in
aggregate.
The
portfolio’s
shorter-than-benchmark
average-duration
profile
detracted
as
municipal
bond
yields
ended
the
period
lower
across
most
of
the
curve.
Positioning
across
key
rates
also
hampered
relative
performance,
while
the
income
generated
by
municipal
bond
coupon
payments
made
up
for
some
relative
losses.
How
is
the
fund
positioned?
While
2022’s
historic
sell-off
produced
disappointing
results
for
bondholders,
we
believe
it
returned
substantial
value
to
the
municipal
market
through
markedly
higher
yields
and
increased
credit
risk
compensation.
Throughout
the
trailing
one-year
period,
we
utilized
our
fundamental,
bottom-up
research
process
to
add
to
high-conviction
names
at
what
we
viewed
as
attractive
valuations.
The
fund’s
overall
credit
quality
ticked
upward
from
BBB
to
BBB+
over
the
year
as
we
decreased
its
allocation
to
the
B
rating
tier
in
favor
of
BBB
and
BB
bonds,
which
remain
key
overweight
exposures
for
the
fund.
We
also
continued
to
overweight
the
nonrated
tier,
where
we
believe
that
our
research
strengths
can
enable
us
to
take
advantage
of
credits
that
have
been
mispriced
or
overlooked
by
investors.
T.
ROWE
PRICE
Tax-Free
Funds
In
terms
of
interest
rate
management,
the
fund’s
duration
declined
and
ended
the
period
below
the
benchmark’s
duration.
This
change
in
duration
posture
was
partly
a
result
of
a
decrease
in
the
fund’s
allocation
to
bonds
maturing
in
10
to
20
years
and
an
increase
in
bonds
maturing
within
three
years.
Regarding
the
fund’s
positioning
across
sectors,
we
continued
to
overweight
the
IDR/PCR
subsector,
although
our
allocation
to
the
sector
ended
the
period
slightly
lower.
In
addition
to
offering
above-average
yields,
we
believe
this
area
of
the
market
provides
diversification
benefits
for
municipal
investors
due
to
its
corporate-backed
nature.
When
approaching
potential
investments
in
this
subsector,
we
frequently
exchange
research
insights
with
T.
Rowe
Price’s
taxable
fixed
income
and
equity
analysts
in
an
effort
to
deepen
our
understanding
of
the
bonds’
underlying
guarantors
while
aiming
to
avoid
the
most
speculative
projects
in
the
space.
Health
care
revenue
bonds—
namely,
those
from
hospitals
and
life
care
communities—
remained
a
prominent
overweight
allocation.
However,
we
reduced
our
allocation
to
hospital
revenue
bonds
and
life
care
revenue
bonds
over
the
period
alongside
headwinds
from
staffing
shortages
and
inflationary
pressures
on
labor
and
medical
supply
costs.
While
we
expect
hospitals’
financial
performance
to
remain
challenged
in
the
year
ahead,
we
are
encouraged
by
fundamental
trends
within
the
subsector.
In
addition,
labor
inflation
seems
to
be
cooling,
and
the
use
and
hourly
cost
of
contract
labor
have
declined,
which
we
view
as
potential
drivers
of
further
margin
improvement
for
hospital
operators.
Sources:
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
rating
agencies
differ,
the
highest
rating
is
applied
to
the
security.
If
a
rating
is
not
available,
the
security
is
classified
as
Not
Rated.
T.
Rowe
Price
uses
the
rating
of
the
underlying
investment
vehicle
to
determine
the
creditworthiness
of
credit
default
swaps.
The
fund
is
not
rated
by
any
agency.
CREDIT
QUALITY
DIVERSIFICATION
Intermediate
Tax-Free
High
Yield
Fund
T.
ROWE
PRICE
Tax-Free
Funds
What
is
portfolio
management’s
outlook?
We
still
expect
the
Federal
Reserve
to
cut
interest
rates
this
year,
but
we
agree
with
the
shift
in
market
consensus
that
occurred
in
February
and
now
anticipate
a
smaller
number
of
cuts
this
year
along
with
a
later
start
date.
We
don’t
foresee
a
recession
in
the
near
term
but,
in
our
view,
the
Fed
will
feel
cuts
are
justified
to
keep
real
(inflation-adjusted)
yields
from
increasing
too
much
as
inflation
decreases.
Despite
substantial
macroeconomic
headwinds,
the
municipal
bond
market’s
credit
fundamentals
remained
generally
strong
thanks
to
pandemic-era
federal
aid
and
improved
fiscal
management
by
some
of
the
most
challenged
issuers.
These
factors,
from
our
perspective,
should
help
buffer
credit
ratings
in
a
recession
if
one
transpires,
although
a
recession
is
not
our
base
case.
Regarding
market
technicals,
the
backdrop
of
higher
yields
and
generally
solid
fundamentals
should,
in
our
view,
draw
investors
back
to
the
municipal
market
in
the
months
and
years
ahead.
While
flows
to
the
asset
class
recently
flipped
to
net
positive
as
inflows
to
municipal
bond
mutual
funds
reemerged,
we
acknowledge
that
bouts
of
outflows
may
persist
until
interest
rate
volatility
shows
a
more
sustained
moderation.
Although
credit
spreads
have
tightened
and
currently
sit
near
their
long-term
averages,
we
believe
our
fundamental
research
process
positions
us
well
to
identify
and
capture
attractive
opportunities
across
our
investable
universe.
In
navigating
this
complex
investment
landscape,
we
are
taking
a
selective
approach
toward
bond
structures
and
maintaining
an
emphasis
on
bottom-up
credit
factors.
As
always,
we
are
striving
to
stay
risk
aware
and
disciplined
in
our
investment
process,
which
we
believe
will
serve
our
clients
well
over
time.
The
views
expressed
reflect
the
opinions
of
T.
Rowe
Price
as
of
the
date
of
this
report
and
are
subject
to
change
based
on
changes
in
market,
economic,
or
other
conditions.
These
views
are
not
intended
to
be
a
forecast
of
future
events
and
are
no
guarantee
of
future
results.
T.
ROWE
PRICE
Tax-Free
Funds
RISKS
OF
INVESTING
IN
THE
TAX-EXEMPT
MONEY
FUND
You
could
lose
money
by
investing
in
the
Fund.
Although
the
Fund
seeks
to
preserve
the
value
of
your
investment
at
$1.00
per
share,
it
cannot
guarantee
it
will
do
so.
The
Fund
may
impose
a
fee
upon
the
sale
of
your
shares
or
may
temporarily
suspend
your
ability
to
sell
shares
if
the
Fund’s
liquidity
falls
below
required
minimums
because
of
market
conditions
or
other
factors.
An
investment
in
the
Fund
is
not
insured
or
guaranteed
by
the
Federal
Deposit
Insurance
Corporation
or
any
other
government
agency.
The
Fund’s
sponsor
has
no
legal
obligation
to
provide
financial
support
to
the
Fund,
and
you
should
not
expect
that
the
sponsor
will
provide
financial
support
to
the
Fund
at
any
time.
RISKS
OF
INVESTING
IN
FIXED
INCOME
SECURITIES
Bonds
are
subject
to
interest
rate
risk
(the
decline
in
bond
prices
that
usually
accompanies
a
rise
in
interest
rates)
and
credit
risk
(the
chance
that
any
fund
holding
could
have
its
credit
rating
downgraded
or
that
a
bond
issuer
will
default
by
failing
to
make
timely
payments
of
interest
or
principal),
potentially
reducing
the
fund’s
income
level
and
share
price.
Investments
in
high
yield
bonds
involve
greater
risk
of
price
volatility,
illiquidity,
and
default
than
higher-rated
debt
securities.
Municipal
bond
funds
may
be
highly
impacted
by
events
tied
to
the
overall
municipal
securities
markets,
including
unfavorable
legislative
or
political
developments
and
adverse
changes
in
the
financial
conditions
of
municipal
bond
issuers
and
the
economy.
Some
income
may
be
subject
to
state
and
local
taxes
and
the
federal
alternative
minimum
tax.
BENCHMARK
INFORMATION
Note:
Bloomberg
®
and
Bloomberg
1–5
Year
Blend
(1–6
Year
Maturity)
Index,
Bloomberg
Municipal
Bond
Index,
Bloomberg
65%
High-Grade/35%
High-
Yield
Index,
and
Bloomberg
65%
High-Grade/35%
High-Yield
Intermediate
Competitive
(1–17
Year
Maturity)
Index
are
service
marks
of
Bloomberg
Finance
L.P.
and
its
affiliates,
including
Bloomberg
Index
Services
Limited
(“BISL”),
the
administrator
of
the
index
(collectively,
“Bloomberg”)
and
have
been
licensed
for
use
for
certain
purposes
by
T.
Rowe
Price.
Bloomberg
is
not
affiliated
with
T.
Rowe
Price,
and
Bloomberg
does
not
approve,
endorse,
review,
or
recommend
its
products.
Bloomberg
does
not
guarantee
the
timeliness,
accurateness,
or
completeness
of
any
data
or
information
relating
to
its
products.
Note:
Copyright
©
2024
Fitch
Ratings,
Inc.,
Fitch
Ratings
Ltd.
and
its
subsidiaries.
T.
ROWE
PRICE
Tax-Free
Funds
Note:
Portions
of
the
mutual
fund
information
contained
in
this
report
was
supplied
by
Lipper,
a
Refinitiv
Company,
subject
to
the
following:
Copyright
2024
©
Refinitiv.
All
rights
reserved.
Any
copying,
republication
or
redistribution
of
Lipper
content
is
expressly
prohibited
without
the
prior
written
consent
of
Lipper.
Lipper
shall
not
be
liable
for
any
errors
or
delays
in
the
content,
or
for
any
actions
taken
in
reliance
thereon.
Note:
©
2024,
Moody’s
Corporation,
Moody’s
Investors
Service,
Inc.,
Moody’s
Analytics,
Inc.
and/or
their
licensors
and
affiliates
(collectively,
“Moody’s”).
All
rights
reserved.
Moody’s
ratings
and
other
information
(“Moody’s
Information”)
are
proprietary
to
Moody’s
and/or
its
licensors
and
are
protected
by
copyright
and
other
intellectual
property
laws.
Moody’s
Information
is
licensed
to
Client
by
Moody’s.
MOODY’S
INFORMATION
MAY
NOT
BE
COPIED
OR
OTHERWISE
REPRODUCED,
REPACKAGED,
FURTHER
TRANSMITTED,
TRANSFERRED,
DISSEMINATED,
REDISTRIBUTED
OR
RESOLD,
OR
STORED
FOR
SUBSEQUENT
USE
FOR
ANY
SUCH
PURPOSE,
IN
WHOLE
OR
IN
PART,
IN
ANY
FORM
OR
MANNER
OR
BY
ANY
MEANS
WHATSOEVER,
BY
ANY
PERSON
WITHOUT
MOODY’S
PRIOR
WRITTEN
CONSENT.
Moody's
®
is
a
registered
trademark.
Note:
Copyright
©
2024,
S&P
Global
Market
Intelligence
(and
its
affiliates,
as
applicable).
Reproduction
of
any
information,
data
or
material,
including
ratings
(“Content”)
in
any
form
is
prohibited
except
with
the
prior
written
permission
of
the
relevant
party. Such
party,
its
affiliates
and
suppliers
(“Content
Providers”)
do
not
guarantee
the
accuracy,
adequacy,
completeness,
timeliness
or
availability
of
any
Content
and
are
not
responsible
for
any
errors
or
omissions
(negligent
or
otherwise),
regardless
of
the
cause,
or
for
the
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from
the
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Content.
In
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Content
Providers
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for
any
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or
losses
(including
lost
income
or
lost
profit
and
opportunity
costs)
in
connection
with
any
use
of
the
Content.
A
reference
to
a
particular
investment
or
security,
a
rating
or
any
observation
concerning
an
investment
that
is
part
of
the
Content
is
not
a
recommendation
to
buy,
sell
or
hold
such
investment
or
security,
does
not
address
the
appropriateness
of
an
investment
or
security
and
should
not
be
relied
on
as
investment
advice.
Credit
ratings
are
statements
of
opinions
and
are
not
statements
of
fact.
BENCHMARK
INFORMATION
(continued)
T.
ROWE
PRICE
Tax-Free
Funds
GROWTH
OF
$10,000
This
chart
shows
the
value
of
a
hypothetical
$10,000
investment
in
the
fund
over
the
past
10
fiscal
year
periods
or
since
inception
(for funds
lacking
10-year
records).
The
result
is
compared
with
benchmarks,
which
include
a
broad-based
market
index
and
may
also
include
a
peer
group
average
or
index.
Market
indexes
do
not
include
expenses,
which
are
deducted
from fund
returns
as
well
as
mutual fund
averages
and
indexes.
TAX-FREE
SHORT-INTERMEDIATE
FUND
Note:
Performance
for
the Advisor
and
I Class
shares
will
vary
due
to
their
differing
fee
structures.
See
the
Average
Annual
Compound
Total
Return
table.
T.
ROWE
PRICE
Tax-Free
Funds
GROWTH
OF
$10,000
This
chart
shows
the
value
of
a
hypothetical
$10,000
investment
in
the
fund
over
the
past
10
fiscal
year
periods
or
since
inception
(for funds
lacking
10-year
records).
The
result
is
compared
with
benchmarks,
which
include
a
broad-based
market
index
and
may
also
include
a
peer
group
average
or
index.
Market
indexes
do
not
include
expenses,
which
are
deducted
from fund
returns
as
well
as
mutual fund
averages
and
indexes.
TAX-FREE
INCOME
FUND
Note:
Performance
for
the Advisor
and
I Class
shares
will
vary
due
to
their
differing
fee
structures.
See
the
Average
Annual
Compound
Total
Return
table.
T.
ROWE
PRICE
Tax-Free
Funds
GROWTH
OF
$10,000
This
chart
shows
the
value
of
a
hypothetical
$10,000
investment
in
the
fund
over
the
past
10
fiscal
year
periods
or
since
inception
(for funds
lacking
10-year
records).
The
result
is
compared
with
benchmarks,
which
include
a
broad-based
market
index
and
may
also
include
a
peer
group
average
or
index.
Market
indexes
do
not
include
expenses,
which
are
deducted
from fund
returns
as
well
as
mutual fund
averages
and
indexes.
TAX-FREE
HIGH
YIELD
FUND
Note:
Performance
for
the Advisor
and
I Class
shares
will
vary
due
to
their
differing
fee
structures.
See
the
Average
Annual
Compound
Total
Return
table.
T.
ROWE
PRICE
Tax-Free
Funds
GROWTH
OF
$10,000
This
chart
shows
the
value
of
a
hypothetical
$10,000
investment
in
the
fund
over
the
past
10
fiscal
year
periods
or
since
inception
(for funds
lacking
10-year
records).
The
result
is
compared
with
benchmarks,
which
include
a
broad-based
market
index
and
may
also
include
a
peer
group
average
or
index.
Market
indexes
do
not
include
expenses,
which
are
deducted
from fund
returns
as
well
as
mutual fund
averages
and
indexes.
INTERMEDIATE
TAX-FREE
HIGH
YIELD
FUND
Note:
Performance
for
the I Class
shares
will
vary
due
to
their
differing
fee
structures.
See
the
Average
Annual
Compound
Total
Return
table.
*The
Lipper
data
are
from
7/31/14.
T.
ROWE
PRICE
Tax-Free
Funds
AVERAGE
ANNUAL
COMPOUND
TOTAL
RETURN
Periods
Ended
2/29/24
1
Year
5
Years
10
Years
Since
Inception
Inception
Date
Tax-Free
Short-
Intermediate
Fund
–
.
3.85%
1.19%
1.13%
–
–
Tax-Free
Short-
Intermediate
Fund–
.
Advisor
Class
3.33
0.85
0.79
–
–
Tax-Free
Short-
Intermediate
Fund–
.
I
Class
3.81
1.31
–
1.51%
11/29/16
..
Tax-Free
Income
Fund
–
.
6.16
1.96
2.68
–
–
Tax-Free
Income
Fund–
.
Advisor
Class
5.80
1.63
2.33
–
–
Tax-Free
Income
Fund–
.
I
Class
6.11
2.01
–
2.09
7/6/17
..
Tax-Free
High
Yield
Fund
–
.
7.05
2.04
3.40
–
–
Tax-Free
High
Yield
Fund–
.
Advisor
Class
6.65
1.71
3.12
–
–
Tax-Free
High
Yield
Fund–
.
I
Class
7.07
2.14
–
2.82
11/29/16
..
Intermediate
Tax-Free
High
Yield
Fund
–
.
5.39
1.82
–
2.59
7/24/14
Intermediate
Tax-Free
High
Yield
Fund–
.
I
Class
5.55
1.87
–
2.19
7/6/17
..
This
table
shows
how
the
funds
would
have
performed
each
year
if
their
actual
(or
cumulative)
returns
for
the
periods
shown
had
been
earned
at
a
constant
rate.
Average
annual
total
return
figures
include
changes
in
principal
value,
reinvested
dividends,
and
capital
gain
distributions.
Returns
do
not
reflect
taxes
that
the
shareholder
may
pay
on
fund
distributions
or
the
redemption
of
fund
shares.
Past
performance
cannot
guarantee
future
results.
When
assessing
performance,
investors
should
consider
both
short-
and
long-term
returns.
T.
ROWE
PRICE
Tax-Free
Funds
EXPENSE
RATIOS
FUND
EXPENSE
EXAMPLE
As
a
mutual
fund
shareholder,
you
may
incur
two
types
of
costs:
(1)
transaction
costs,
such
as
redemption
fees
or
sales
loads,
and
(2)
ongoing
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
fund
expenses.
The
following
example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
fund
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
most
recent
six-month
period
and
held
for
the
entire
period.
Please
note
that
the
Intermediate
Tax-Free
High
Yield
Fund,
Tax-Free
High
Yield
Fund,
Tax-Free
Income
Fund,
and
Tax-Free
Short-Intermediate
Fund have
three
share
classes:
The
original
share
class
(Investor
Class)
charges
no
distribution
and
service
(12b-1)
fee,
the
Advisor
Class
shares
are
offered
only
through
unaffiliated
brokers
and
other
financial
intermediaries
and
charge
a
0.25%
12b-1
fee,
and
the
I
Class
shares
are
available
to
institutionally
oriented
clients
and
impose
no
12b-1
or
administrative
fee
payment.
The
Tax-Exempt
Money
Fund
has
two
share
classes:
The
original
share
class
(Investor
Class)
charges
no
distribution
and
service
(12b-1)
fee,
and
the
I
Class
shares
are
also
available
to
institutionally
oriented
clients
and
impose
no
12b-1
or
administrative
fee
payment.
Each
share
class
is
presented
separately
in
the
table.
Tax-Free
Short-Intermediate
Fund
0.52%
Tax-Free
Short-Intermediate
Fund–Advisor
Class
0.77
Tax-Free
Short-Intermediate
Fund–I
Class
0.37
Tax-Free
Income
Fund
0.59
Tax-Free
Income
Fund–Advisor
Class
0.86
Tax-Free
Income
Fund–I
Class
0.47
Tax-Free
High
Yield
Fund
0.77
Tax-Free
High
Yield
Fund–Advisor
Class
1.03
Tax-Free
High
Yield
Fund–I
Class
0.63
Intermediate
Tax-Free
High
Yield
Fund
1.02
Intermediate
Tax-Free
High
Yield
Fund–I
Class
0.84
The
expense
ratios
shown
are
as
of
the
funds’
most
recent
prospectus.
These
numbers
may
vary
from
the
expense
ratios
shown
elsewhere
in
this
report
because
they
are
based
on
a
different
time
period
and,
if
applicable,
include
acquired
fund
fees
and
expenses
but
do
not
include
fee
or
expense
waivers.
T.
ROWE
PRICE
Tax-Free
Funds
Actual
Expenses
The
first
line
of
the
following
table
(Actual)
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
on
this
line,
together
with
your
account
balance,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
on
the
first
line
under
the
heading
“Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
Hypothetical
Example
for
Comparison
Purposes
The
information
on
the
second
line
of
the
table
(Hypothetical)
is
based
on
hypothetical
account
values
and
expenses
derived
from
the
fund’s
actual
expense
ratio
and
an
assumed
5%
per
year
rate
of
return
before
expenses
(not
the
fund’s
actual
return).
You
may
compare
the
ongoing
costs
of
investing
in
the
fund
with
other
funds
by
contrasting
this
5%
hypothetical
example
and
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
the
other
funds.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
Note:
T.
Rowe
Price
charges
an
annual
account
service
fee
of
$20,
generally
for
accounts
with
less
than
$10,000.
The
fee
is
waived
for
any
investor
whose
T.
Rowe
Price
mutual
fund
accounts
total
$50,000
or
more;
accounts
electing
to
receive
electronic
delivery
of
account
statements,
transaction
confirmations,
prospectuses,
and
shareholder
reports;
or
accounts
of
an
investor
who
is
a
T.
Rowe
Price
Personal
Services
or
Enhanced
Personal
Services
client
(enrollment
in
these
programs
generally
requires
T.
Rowe
Price
assets
of
at
least
$250,000).
This
fee
is
not
included
in
the
accompanying
table.
If
you
are
subject
to
the
fee,
keep
it
in
mind
when
you
are
estimating
the
ongoing
expenses
of
investing
in
the
fund
and
when
comparing
the
expenses
of
this
fund
with
other
funds.
You
should
also
be
aware
that
the
expenses
shown
in
the
table
highlight
only
your
ongoing
costs
and
do
not
reflect
any
transaction
costs,
such
as
redemption
fees
or
sales
loads.
Therefore,
the
second
line
of
the
table
is
useful
in
comparing
ongoing
costs
only
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
To
the
extent
a
fund
charges
transaction
costs,
however,
the
total
cost
of
owning
that
fund
is
higher.
FUND
EXPENSE
EXAMPLE
(CONTINUED)
T.
ROWE
PRICE
Tax-Free
Funds
TAX-EXEMPT
MONEY
FUND
Beginning
Account
Value
9/1/23
Ending
Account
Value
2/29/24
Expenses
Paid
During
Period*
9/1/23
to
2/29/24
Investor
Class
Actual
$1,000.00
$1,015.80
$2.05
Hypothetical
(assumes
5%
return
before
expenses)
1,000.00
1,022.82
2.06
I
Class
Actual
1,000.00
1,016.60
1.20
Hypothetical
(assumes
5%
return
before
expenses)
1,000.00
1,023.67
1.21
*
Expenses
are
equal
to
the
fund’s
annualized
expense
ratio
for
the
6-month
period,
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
the
number
of
days
in
the
most
recent
fiscal
half
year
(182),
and
divided
by
the
days
in
the
year
(366)
to
reflect
the
half-year
period.
The
annualized
expense
ratio
of
the
1
Investor
Class
was
0.41%,
and
the
2
I Class
was
0.24%.
FUND
EXPENSE
EXAMPLE
(CONTINUED)
T.
ROWE
PRICE
Tax-Free
Funds
TAX-FREE
SHORT-INTERMEDIATE
FUND
Beginning
Account
Value
9/1/23
Ending
Account
Value
2/29/24
Expenses
Paid
During
Period*
9/1/23
to
2/29/24
Investor
Class
Actual
$1,000.00
$1,026.30
$2.62
Hypothetical
(assumes
5%
return
before
expenses)
1,000.00
1,022.28
2.61
Advisor
Class
Actual
1,000.00
1,024.50
4.38
Hypothetical
(assumes
5%
return
before
expenses)
1,000.00
1,020.54
4.37
I
Class
Actual
1,000.00
1,027.00
1.86
Hypothetical
(assumes
5%
return
before
expenses)
1,000.00
1,023.02
1.86
*
Expenses
are
equal
to
the
fund’s
annualized
expense
ratio
for
the
6-month
period,
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
the
number
of
days
in
the
most
recent
fiscal
half
year
(182),
and
divided
by
the
days
in
the
year
(366)
to
reflect
the
half-year
period.
The
annualized
expense
ratio
of
the
1
Investor
Class
was
0.52%,
the
2
Advisor Class
was
0.87%,
and
the
3
I Class
was
0.37%.
FUND
EXPENSE
EXAMPLE
(CONTINUED)
T.
ROWE
PRICE
Tax-Free
Funds
TAX-FREE
INCOME
FUND
Beginning
Account
Value
9/1/23
Ending
Account
Value
2/29/24
Expenses
Paid
During
Period*
9/1/23
to
2/29/24
Investor
Class
Actual
$1,000.00
$1,049.70
$2.70
Hypothetical
(assumes
5%
return
before
expenses)
1,000.00
1,022.23
2.66
Advisor
Class
Actual
1,000.00
1,047.90
4.43
Hypothetical
(assumes
5%
return
before
expenses)
1,000.00
1,020.54
4.37
I
Class
Actual
1,000.00
1,048.90
2.39
Hypothetical
(assumes
5%
return
before
expenses)
1,000.00
1,022.53
2.36
*
Expenses
are
equal
to
the
fund’s
annualized
expense
ratio
for
the
6-month
period,
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
the
number
of
days
in
the
most
recent
fiscal
half
year
(182),
and
divided
by
the
days
in
the
year
(366)
to
reflect
the
half-year
period.
The
annualized
expense
ratio
of
the
1
Investor
Class
was
0.53%,
the
2
Advisor Class
was
0.87%,
and
the
3
I Class
was
0.47%.
FUND
EXPENSE
EXAMPLE
(CONTINUED)
T.
ROWE
PRICE
Tax-Free
Funds
TAX-FREE
HIGH
YIELD
FUND
Beginning
Account
Value
9/1/23
Ending
Account
Value
2/29/24
Expenses
Paid
During
Period*
9/1/23
to
2/29/24
Investor
Class
Actual
$1,000.00
$1,056.70
$3.43
Hypothetical
(assumes
5%
return
before
expenses)
1,000.00
1,021.53
3.37
Advisor
Class
Actual
1,000.00
1,053.60
5.26
Hypothetical
(assumes
5%
return
before
expenses)
1,000.00
1,019.74
5.17
I
Class
Actual
1,000.00
1,056.40
2.81
Hypothetical
(assumes
5%
return
before
expenses)
1,000.00
1,022.13
2.77
*
Expenses
are
equal
to
the
fund’s
annualized
expense
ratio
for
the
6-month
period,
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
the
number
of
days
in
the
most
recent
fiscal
half
year
(182),
and
divided
by
the
days
in
the
year
(366)
to
reflect
the
half-year
period.
The
annualized
expense
ratio
of
the
1
Investor
Class
was
0.67%,
the
2
Advisor Class
was
1.03%,
and
the
3
I Class
was
0.55%.
FUND
EXPENSE
EXAMPLE
(CONTINUED)
T.
ROWE
PRICE
Tax-Free
Funds
INTERMEDIATE
TAX-FREE
HIGH
YIELD
FUND
Beginning
Account
Value
9/1/23
Ending
Account
Value
2/29/24
Expenses
Paid
During
Period*
9/1/23
to
2/29/24
Investor
Class
Actual
$1,000.00
$1,039.90
$2.33
Hypothetical
(assumes
5%
return
before
expenses)
1,000.00
1,022.58
2.31
I
Class
Actual
1,000.00
1,040.10
2.13
Hypothetical
(assumes
5%
return
before
expenses)
1,000.00
1,022.77
2.11
*
Expenses
are
equal
to
the
fund’s
annualized
expense
ratio
for
the
6-month
period,
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
the
number
of
days
in
the
most
recent
fiscal
half
year
(182),
and
divided
by
the
days
in
the
year
(366)
to
reflect
the
half-year
period.
The
annualized
expense
ratio
of
the
1
Investor
Class
was
0.46%,
and
the
3
I Class
was
0.42%.
FUND
EXPENSE
EXAMPLE
(CONTINUED)
T.
ROWE
PRICE
Tax-Free
Funds
QUARTER-END
RETURNS
Periods
Ended
12/31/23
......
1
Year
....
5
Years
....
10
Years
Since
Inception
Inception
Date
Tax-Free
Short-Intermediate
Fund
–
.
3.95%
1.39%
1.24%
–
–
Tax-Free
Short-Intermediate
Fund–
.
Advisor
Class
3.48
1.05
0.90
–
–
Tax-Free
Short-Intermediate
Fund–
.
I
Class
3.90
1.51
–
1.54%
11/29/16
Tax-Free
Income
Fund
–
.
7.01
2.16
3.03
–
–
Tax-Free
Income
Fund–
.
Advisor
Class
6.66
1.81
2.69
–
–
Tax-Free
Income
Fund–
.
I
Class
7.07
2.23
–
2.16
7/6/17
Tax-Free
High
Yield
Fund
–
.
7.02
2.03
3.75
–
–
Tax-Free
High
Yield
Fund–
.
Advisor
Class
6.75
1.72
3.48
–
–
Tax-Free
High
Yield
Fund–
.
I
Class
7.15
2.14
–
2.70
11/29/16
Intermediate
Tax-Free
High
Yield
Fund
–
.
5.33
1.93
–
2.55
7/24/14
Intermediate
Tax-Free
High
Yield
Fund–
.
I
Class
5.38
1.97
–
2.10
7/6/17
The
funds’
performance
information
represents
only
past
performance
and
is
not
necessarily
an
indication
of
future
results.
Current
performance
may
be
lower
or
higher
than
the
performance
data
cited.
Share
price,
principal
value,
yield,
and
return
will
vary,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
For
the
most
recent
month-end
performance,
please
visit
our
website
(troweprice.com)
or
contact
a
T.
Rowe
Price
representative
at
1-800-225-5132
or,
for
2
Advisor
and
3
I
Class
shares,
1-800-638-8790.
This
table
provides
returns
net
of
expenses
through
the
most
recent
calendar
quarter-end
rather
than
through
the
end
of
the
funds’
fiscal
period. It
shows
how
the
funds
would
have
performed
each
year
if
their
actual
(or
cumulative)
returns
for
the
periods
shown
had
been
earned
at
a
constant
rate.
Average
annual
total
return
figures
include
changes
in
principal
value,
reinvested
dividends,
and
capital
gain
distributions.
Returns
do
not
reflect
taxes
that
the
shareholder
may
pay
on
fund
distributions
or
the
redemption
of
fund
shares.
When
assessing
performance,
investors
should
consider
both
short-
and
long-term
returns.
A
money
fund’s
yield
more
closely
represents
its
current
earnings
than
does
the
total
return.
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.
202404-3377836
C03-050
4/24
Annual
Report
|
Financial
Statements
For
more
insights
from
T.
Rowe
Price
investment
professionals,
go
to
troweprice.com
.
T.
ROWE
PRICE
PTEXX
Tax-Exempt
Money
Fund
–
.
TERXX
Tax-Exempt
Money
Fund–
.
I Class
T.
ROWE
PRICE
Tax-Exempt
Money
Fund
For
a
share
outstanding
throughout
each
period
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Investor
Class
..
Year
..
..
Ended
.
2/29/24
2/28/23
2/28/22
2/28/21
2/29/20
NET
ASSET
VALUE
Beginning
of
period
$
1.00
$
1.00
$
1.00
$
1.00
$
1.00
Investment
activities
Net
investment
income
(1)(2)
0.03
0.01
(3)
—
(3)
(4)
—
(3)
(4)
0.01
Net
realized
and
unrealized
gain/
loss
—
(4)
—
(4)
—
(4)
—
(4)
—
(4)
Total
from
investment
activities
0.03
0.01
—
(4)
—
(4)
0.01
Distributions
Net
investment
income
(0.03)
(0.01)
—
(4)
—
(4)
(0.01)
NET
ASSET
VALUE
End
of
period
$
1.00
$
1.00
$
1.00
$
1.00
$
1.00
Ratios/Supplemental
Data
Total
return
(2)(5)
3.04%
1.20%
(3)
0.02%
(3)
0.19%
(3)
1.01%
Ratios
to
average
net
assets:
(2)
Gross
expenses
before
waivers/
payments
by
Price
Associates
0.41%
0.44%
0.36%
0.52%
0.55%
Net
expenses
after
waivers/
payments
by
Price
Associates
0.41%
0.42%
(3)
0.08%
(3)
0.22%
(3)
0.43%
Net
investment
income
2.98%
1.15%
(3)
0.01%
(3)
0.17%
(3)
1.00%
Net
assets,
end
of
period
(in
thousands)
$170,492
$176,009
$274,397
$343,697
$240,329
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)
Includes
the
effect
of
voluntary
management
fee
waivers
and
operating
expense
reimbursements
(0.02%,
0.27%
and
0.19%
of
average
net
assets)
for
the
years
ended
2/28/23,
2/28/22
and
2/28/21,
respectively.
(4)
Amounts
round
to
less
than
$0.01
per
share.
(5)
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.
T.
ROWE
PRICE
Tax-Exempt
Money
Fund
For
a
share
outstanding
throughout
each
period
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
I
Class
..
Year
..
..
Ended
.
2/29/24
2/28/23
2/28/22
2/28/21
2/29/20
NET
ASSET
VALUE
Beginning
of
period
$
1.00
$
1.00
$
1.00
$
1.00
$
1.00
Investment
activities
Net
investment
income
(1)(2)
0.03
0.01
(3)
—
(3)
(4)
—
(3)
(4)
0.01
Net
realized
and
unrealized
gain/
loss
—
(4)
—
(4)
—
(4)
—
(4)
—
(4)
Total
from
investment
activities
0.03
0.01
—
(4)
—
(4)
0.01
Distributions
Net
investment
income
(0.03)
(0.01)
—
(4)
—
(4)
(0.01)
NET
ASSET
VALUE
End
of
period
$
1.00
$
1.00
$
1.00
$
1.00
$
1.00
Ratios/Supplemental
Data
Total
return
(2)(5)
3.22%
1.39%
(3)
0.02%
(3)
0.20%
(3)
1.11%
Ratios
to
average
net
assets:
(2)
Gross
expenses
before
waivers/
payments
by
Price
Associates
0.25%
0.26%
0.27%
0.45%
0.46%
Net
expenses
after
waivers/
payments
by
Price
Associates
0.25%
0.24%
(3)
0.08%
(3)
0.21%
(3)
0.33%
Net
investment
income
3.15%
1.41%
(3)
0.01%
(3)
0.19%
(3)
1.09%
Net
assets,
end
of
period
(in
thousands)
$505,688
$487,066
$362,029
$191,423
$137,967
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)
Includes
the
effect
of
voluntary
management
fee
waivers
and
operating
expense
reimbursements
(0.00%,
0.17%
and
0.12%
of
average
net
assets)
for
the
years
ended
2/28/23,
2/28/22
and
2/28/21,
respectively.
(4)
Amounts
round
to
less
than
$0.01
per
share.
(5)
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.
T.
ROWE
PRICE
Tax-Exempt
Money
Fund
February
29,
2024
Portfolio
of
Investments
‡
Par
$
Value
(Amounts
in
000s)
‡
NON-FINANCIAL
COMPANY
COMMERCIAL
PAPER
23.6%
California
Statewide
Communities
Dev.
Auth.,
Series 9B-1,
TECP,
3.60%,
5/14/24
6,700
6,700
Florida
Local
Government
Finance
Commission,
Series A-1,
TECP,
3.50%,
4/2/24
2,991
2,991
Garland
City,
Series 2021,
TECP,
3.62%,
3/7/24
6,710
6,710
Georgia
Municipal
Electric
Auth.,
Series 1B,
TECP,
3.45%,
6/5/24
3,500
3,500
Georgia
Municipal
Electric
Auth.,
Series B,
TECP,
3.45%,
6/5/24
3,300
3,300
Harris
County,
Series C,
TECP,
3.40%,
3/4/24
6,500
6,500
Harris
County
Cultural
Ed.
Fac.,
Series B-2,
TECP,
3.70%,
4/1/24
3,400
3,400
Harris
County
Cultural
Ed.
Fac.,
Series B-3,
TECP,
3.40%,
5/3/24
3,400
3,400
Harris
County
Cultural
Ed.
Fac.
Fin.,
Methodist
Health,
Series
9C-
1,
TECP,
3.75%,
3/1/24
9,500
9,500
Harris
County
Toll
Auth.,
Series K,
TECP,
3.60%,
3/20/24
2,600
2,600
Harris
County
Toll
Auth.,
Series K,
TECP,
3.65%,
3/20/24
4,130
4,130
Houston
Higher
Education
Fin.,
Series A,
TECP,
3.50%,
5/1/24
100
100
Houston
Higher
Education
Fin.,
Series A,
TECP,
3.50%,
5/24/24
200
200
Houston
Higher
Education
Fin.,
Series A,
TECP,
3.52%,
5/1/24
500
500
Houston
Higher
Education
Fin.,
Series A,
TECP,
3.60%,
6/17/24
3,800
3,800
Illinois
EFA,
TECP,
3.70%,
4/3/24
6,700
6,700
Indiana
Univ.,
TECP,
3.55%,
5/29/24
3,700
3,700
Indiana
Univ.,
TECP,
3.55%,
6/5/24
3,000
3,000
Jacksonville,
Mayo
Health
Clinic,
Series 2016,
TECP,
3.95%,
4/10/24
3,500
3,500
Lower
Colorado
River
Auth.,
Series B,
TECP,
3.50%,
3/28/24
6,600
6,600
Maryland
HHEFA,
Johns
Hopkins
Health
Systems,
Series B,
TECP,
3.25%,
3/7/24
2,865
2,865
Massachusetts
Water
Resources
Auth.,
TECP,
3.63%,
3/13/24
3,500
3,500
Metropolitan
Govt.
Nashville
&
Davidson,
Series 2021,
TECP,
3.55%,
5/9/24
6,800
6,800
Metropolitan
Govt.
Nashville
&
Davidson,
Water
&
Swere
Auth.,
Series 2022,
TECP,
3.20%,
3/11/24
6,500
6,500
Metropolitan
Govt.
Nashville
&
Davidson,
Water
&
Swere
Auth.,
Series 2022,
TECP,
3.60%,
5/6/24
300
300
New
York
Power
Auth.,
Series 2,
TECP,
3.45%,
3/6/24
6,500
6,500
Ohio
Higher
Ed.
Fac.
Commission,
Series B-5,
TECP,
3.53%,
5/16/24
2,945
2,945
Oregon
DOT,
Series A-1,
TECP,
3.59%,
3/14/24
4,350
4,350
Oregon
DOT,
Series A-1,
TECP,
3.65%,
3/14/24
2,400
2,400
South
Carolina
Public
Service
Auth.,
Series A,
TECP,
3.70%,
3/5/24
4,000
4,000
South
Carolina
Public
Service
Auth.,
Series B,
TECP,
3.55%,
3/7/24
2,800
2,800
Tennessee,
Series 00-A,
TECP,
3.72%,
5/8/24
3,100
3,100
Tennessee,
Series 00-A,
TECP,
3.82%,
4/4/24
4,700
4,700
T.
ROWE
PRICE
Tax-Exempt
Money
Fund
Par
$
Value
(Amounts
in
000s)
Univ.
of
Michigan,
Series B,
TECP,
3.45%,
5/9/24
6,500
6,500
Univ.
of
Minnesota,
Series F,
TECP,
3.55%,
3/12/24
6,800
6,800
Univ.
of
Texas,
Series B,
TECP,
3.65%,
4/4/24
6,600
6,600
Univ.
of
Texas,
Board
of
Regents,
Series A,
TECP,
3.55%,
8/15/24
6,570
6,570
Univ.
of
Washington,
Series A,
TECP,
3.45%,
3/7/24
1,500
1,500
Total
Non-Financial
Company
Commercial
Paper
(Cost
$159,561)
159,561
OTHER
MUNICIPAL
SECURITY
30.3%
Baltimore
County,
Metropolitan
Dist.
Bonds
(83rd
Issue),
GO,
5.00%,
3/1/24
400
400
California,
Tender
Option
Bond
Trust
Receipts,
Series
2018-
YX1084,
GO,
VRTR,
3.33%,
3/7/24
(1)
4,000
4,000
California,
Tender
Option
Bond
Trust
Receipts,
Series
2023-
XL0501,
GO,
VRTR,
3.33%,
3/7/24
(1)
2,375
2,375
Charleston
County
School
Dist.,
Sales
Tax
Project,
Series B,
GO,
BAN,
5.00%,
5/9/24
2,450
2,458
Clark
County,
Tender
Option
Bond
Trust
Receipts,
Series
2023-
ZL0480,
GO,
VRTR,
3.33%,
3/7/24
(1)
3,275
3,275
Cobb
County
School
Dist.,
Short
Term
Constructions,
GO,
4.00%,
12/16/24
5,000
5,029
Colorado
Ed.
Loan
Program,
Series A,
TRAN,
5.00%,
6/28/24
785
787
Colorado
HFA,
AdventHealth
Obligated
Group,
Tender
Option
Bond
Trust
Receipts,
Series 2023-XG0491,
VRTR,
3.33%,
3/7/24
(1)
1,730
1,730
Colorado
HFA,
Adventist
Health
System,
Tender
Option
Bond
Trust
Receipts,
Series 2023-XM1124,
VRTR,
3.33%,
3/7/24
(1)
2,000
2,000
Colorado
HFA,
Intermountain
Healthcare,
Tender
Option
Bond
Trust
Receipts,
Series 2023-XF1619,
VRTR,
3.33%,
3/7/24
(1)
4,000
4,000
Connetquot
Central
School
Dist.
of
Islip,
GO,
BAN,
5.00%,
6/21/24
4,000
4,015
Dist.
of
Columbia
Income
Tax
Revenue,
Series A,
5.00%,
3/1/24
400
400
Dist.
of
Columbia
Water
&
Sewer
Auth.,
Tender
Option
Bond
Trust
Receipts,
Series 2023-ZL0506,
VRTR,
3.33%,
3/7/24
(1)
1,330
1,330
Fairfax
County
IDA,
Inova
Health
System
Project,
Series A,
5.00%,
5/15/24
1,000
1,002
Florida
State
Board
of
Ed.,
Public
Ed.
Capital
Outlay,
Series D,
GO,
5.00%,
6/1/24
700
702
Franklin
County,
Trinity
Health
Credit
Group,
Series OH,
VR,
3.70%,
5/1/24
(Tender)
6,800
6,800
Greenville
County
School
Dist.,
Series B,
GO,
5.00%,
6/25/24
1,380
1,385
Harris
County
Cultural
Ed.
Fac.
Fin.,
Texas
Children's
Hospital,
Series B,
VR,
5.00%,
10/1/24
(Tender)
6,500
6,566
Harris
County,
Tender
Option
Bond
Trust
Receipts,
Series
2023-
XG0516,
GO,
VRTR,
3.33%,
3/7/24
(1)
2,160
2,160
Indiana
HFFA,
Ascension
Health,
Series A-7,
4.00%,
10/1/24
865
864
T.
ROWE
PRICE
Tax-Exempt
Money
Fund
Par
$
Value
(Amounts
in
000s)
Jackson
County,
Water
System,
GO,
VR,
3.55%,
8/1/24
(Tender)
3,000
3,000
Los
Angeles
County
Metropolitan
Transportation
Auth.,
Tender
Option
Bond
Trust
Receipts,
Series 2022-ZL0327,
VRTR,
3.31%,
3/7/24
(1)
1,400
1,400
Los
Angeles
Dept.
of
Water
&
Power,
Tender
Option
Bond
Trust
Receipts,
Series 2022-ZL0326,
VRTR,
3.31%,
3/7/24
(1)
1,330
1,330
Maricopa
County
IDA,
Banner
Health,
Series C,
VR,
5.00%,
10/18/24
(Tender)
4,500
4,531
Massachusetts,
Consolidated
Loan,
Tender
Option
Bond
Trust
Receipts,
Series 2023-XF1588,
GO,
VRTR,
3.31%,
3/7/24
(1)
3,200
3,200
Massachusetts,
Tender
Option
Bond
Trust
Receipts,
Series
2016-
XM0221,
GO,
VRTR,
3.31%,
3/7/24
(1)(2)
3,120
3,120
Massachusetts,
Tender
Option
Bond
Trust
Receipts,
Series
2023-
ZL0524,
GO,
VRTR,
3.30%,
3/7/24
(1)
1,500
1,500
Michigan
Fin.
Auth.,
Series A-2,
5.00%,
8/20/24
5,000
5,035
Michigan
Fin.
Auth.,
McLaren
Health
Care,
Series A,
5.00%,
5/15/24
1,015
1,018
Michigan
Hosp.
Fin.
Auth.,
Tender
Option
Bond
Trust
Receipts,
Series 2022-ZF1401,
VRTR,
3.33%,
3/7/24
(1)
1,250
1,250
Monmouth
County
Improvement
Auth.,
Government
Pooled
Loan
Project,
4.00%,
3/14/25
(3)
3,000
3,023
Montgomery
County,
Trinity
Health
Credit
Group,
Series 2013MD,
VR,
3.81%,
6/2/24
(Tender)
(3)
1,000
1,000
New
York
City
Municipal
Water
Fin.
Auth.,
Tender
Option
Bond
Trust
Receipts,
Series 2022-XL0375,
VRTR,
3.33%,
3/7/24
(1)
4,040
4,040
New
York
City
Municipal
Water
Fin.
Auth.,
Tender
Option
Bond
Trust
Receipts,
Series 2022-XL0376,
VRTR,
3.33%,
3/7/24
(1)
2,250
2,250
New
York
City
Municipal
Water
Fin.
Auth.,
Tender
Option
Bond
Trust
Receipts,
Series 2022-XL0378,
VRTR,
3.33%,
3/7/24
(1)
915
915
New
York
City
Municipal
Water
Fin.
Auth.,
Tender
Option
Bond
Trust
Receipts,
Series 2023-XF1462,
VRTR,
3.33%,
3/7/24
(1)
2,445
2,445
New
York
City
Transational
Fin.
Auth.,
Tender
Option
Bond
Trust
Receipts,
Series 2023-XF1587,
VRTR,
3.33%,
3/7/24
(1)
2,600
2,600
New
York
City
Transational
Fin.
Auth.,
Tender
Option
Bond
Trust
Receipts,
Series 2023-XG0524,
VRTR,
3.33%,
3/7/24
(1)
6,840
6,840
New
York
City,
Tender
Option
Bond
Trust
Receipts,
Series
2022-
XX1230,
GO,
VRTR,
3.33%,
3/7/24
(1)(4)
4,325
4,325
New
York
Power
Auth.,
Tender
Option
Bond
Trust
Receipts,
Series 2023-XL0416,
VRTR,
3.33%,
3/7/24
(1)
2,060
2,060
New
York
State
Development,
Tender
Option
Bond
Trust
Receipts,
Series 2022-ZL0347,
VRTR,
3.33%,
3/7/24
(1)
1,560
1,560
New
York
State
Dormitory
Auth.,
Tender
Option
Bond
Trust
Receipts,
Series 2022-XM1052,
VRTR,
3.33%,
3/7/24
(1)
5,625
5,625
New
York
State
Dormitory
Auth.,
Tender
Option
Bond
Trust
Receipts,
Series 2023-ZF3171,
VRTR,
3.33%,
3/7/24
(1)
2,125
2,125
New
York
State
Environmental
Fac.,
Tender
Option
Bond
Trust
Receipts,
Series 2022-XF3049,
VRTR,
3.33%,
3/7/24
(1)
2,670
2,670
T.
ROWE
PRICE
Tax-Exempt
Money
Fund
Par
$
Value
(Amounts
in
000s)
New
York
State
Environmental
Fac.,
Tender
Option
Bond
Trust
Receipts,
Series 2023-XF1442,
VRTR,
3.33%,
3/7/24
(1)
3,560
3,560
Oklahoma
Trunpike
Auth.,
Tender
Option
Bond
Trust
Receipts,
Series 2023-ZF1636,
VRTR,
3.33%,
3/7/24
(1)
2,780
2,780
Prince
George's
County,
Univ.
of
Maryland
Capital
Region
Medical
Center,
Tender
Option
Bond
Trust
Receipts,
Series XG0214,
COP,
VRTR,
3.38%,
3/7/24
(1)
325
325
RIB
Floster,
Tender
Option
Bond
Trust
Receipts,
Series
2016-
XM0435,
VRTR,
3.33%,
3/7/24
(1)
7,000
7,000
Riverside
County,
TRAN,
5.00%,
6/28/24
5,000
5,027
School
Board
of
Miami-Dade
County,
TAN,
5.00%,
6/18/24
6,650
6,678
School
Dist.
of
Broward
County,
Series 2023,
TAN,
5.00%,
6/28/24
6,610
6,642
South
Carolina
Assn.
of
Governmental
Organizations,
Series A,
COP,
5.00%,
3/1/24
6,730
6,730
South
Dakota
Housing
Dev.
Auth.,
Series J,
VR,
3.875%,
12/12/24
(Tender)
6,500
6,500
Tarrant
County
Cultural
Ed.
Fac.
Fin.,
Baylor
Scott
&
White
Health
Project,
Tender
Option
Bond
Trust
Receipts,
Series 2023-ZF1668,
VRTR,
3.33%,
3/7/24
(1)
2,260
2,260
Texas
Transportation
Commission
State
Highway
Fund,
1st
Tier,
Series A,
5.00%,
4/1/24
410
410
Triborough
Bride
&
Tunnel
Auth.,
Tender
Option
Bond
Trust
Receipts,
Series 2022-XF1357,
VRTR,
3.34%,
3/7/24
(1)
3,750
3,750
Triborough
Bride
&
Tunnel
Auth.,
Tender
Option
Bond
Trust
Receipts,
Series 2022-XF1359,
VRTR,
3.34%,
3/7/24
(1)
2,250
2,250
Triborough
Bride
&
Tunnel
Auth.,
Tender
Option
Bond
Trust
Receipts,
Series 2022-XX1270,
VRTR,
3.33%,
3/7/24
(1)(5)
1,580
1,580
Triborough
Bride
&
Tunnel
Auth.,
Tender
Option
Bond
Trust
Receipts,
Series 2023-XF1495,
VRTR,
3.33%,
3/7/24
(1)
1,565
1,565
Univ.
of
California
Regents
Medical
Center, Tender
Option
Bond
Trust
Receipts,
Series 2023-YX1294,
VRTR,
3.33%,
3/7/24
(1)
1,875
1,875
Univ.
of
California
Regents
Medical
Center,
Tender
Option
Bond
Trust
Receipts,
Series 2018-YX1098,
VRTR,
3.32%,
3/7/24
(1)
2,900
2,900
Univ.
of
California
Regents
Medical
Center,
Tender
Option
Bond
Trust
Receipts,
Series 2022-XX1258,
VRTR,
3.32%,
3/7/24
(1)
2,000
2,000
Univ.
of
California,
Tender
Option
Bond
Trust
Receipts,
Series 2022-XX1263,
VRTR,
3.32%,
3/7/24
(1)
1,875
1,875
Univ.
of
California,
Tender
Option
Bond
Trust
Receipts,
Series 2023-XF3164,
VRTR,
3.32%,
3/7/24
(1)
3,000
3,000
Univ.
of
California,
Tender
Option
Bond
Trust
Receipts,
Series 2023-XX1325,
VRTR,
3.32%,
3/7/24
(1)
2,500
2,500
Univ.
of
Chicago,
Tender
Option
Bond
Trust
Receipts,
Series 2017-XM0492,
VRTR,
3.33%,
3/7/24
(1)
1,235
1,235
Virginia
Housing
Dev.
Auth.,
Tender
Option
Bond
Trust
Receipts,
Series 2023-XL0489,
VRTR,
3.33%,
3/7/24
(1)
1,800
1,800
T.
ROWE
PRICE
Tax-Exempt
Money
Fund
Par
$
Value
(Amounts
in
000s)
Washington
State,
Tender
Option
Bond
Trust
Receipts,
Series 2022-ZF1403,
GO,
VRTR,
3.33%,
3/7/24
(1)
1,675
1,675
Washington
State,
Tender
Option
Bond
Trust
Receipts,
Series 2023-ZL0490,
GO,
VRTR,
3.33%,
3/7/24
(1)
1,665
1,665
Washington
State,
Tender
Option
Bond
Trust
Receipts,
Series 2023-ZL0491,
GO,
VRTR,
3.33%,
3/7/24
(1)
1,665
1,665
Wichita
City,
Series 314,
GO,
5.00%,
10/15/24
5,000
5,040
Wisconsin
HEFA,
Tender
Option
Bond
Trust
Receipts,
Series 2024-XF1696,
VRTR,
3.33%,
3/7/24
(1)
2,400
2,400
Total
Other
Municipal
Security
(Cost
$204,827)
204,827
VARIABLE
RATE
DEMAND
NOTES
45.7%
Alaska
Housing
Fin.,
Home
Mortgage,
Series B,
VRDN,
3.28%,
3/7/24
3,355
3,355
Alaska
Housing
Fin.,
Home
Mortgage,
Series D,
VRDN,
3.30%,
3/7/24
3,345
3,345
Battery
Park
City
Auth.,
Series D-2,
VRDN,
3.30%,
3/7/24
260
260
Clark
County
Dept.
of
Aviation,
Series D-2B,
VRDN,
3.30%,
3/7/24
1,625
1,625
Colorado
Housing
&
Fin.
Auth.,
Series A-1,
VRDN,
3.20%,
3/7/24
2,870
2,870
Connecticut
HEFA,
Series O,
VRDN,
3.34%,
3/7/24
6,000
6,000
Connecticut
Housing
Fin.
Auth.,
Series A-3,
VRDN,
3.30%,
3/7/24
500
500
Connecticut
Housing
Fin.
Auth.,
Series E-3,
VRDN,
3.11%,
3/7/24
6,200
6,200
Dallas
Performing
Arts
Cultural
Fac.,
Series A,
VRDN,
3.37%,
3/7/24
2,400
2,400
Dallas
Performing
Arts
Cultural
Fac.,
Series B,
VRDN,
3.25%,
3/7/24
1,805
1,805
Delaware
Valley
Regional
Fin.
Auth.,
Series B,
VRDN,
3.29%,
3/7/24
7,005
7,005
Dist.
of
Columbia,
VRDN,
3.37%,
3/7/24
920
920
Dist.
of
Columbia
Water
&
Sewer
Auth.,
Series B-2,
VRDN,
3.36%,
3/7/24
7,600
7,600
Fairfax
County
Economic
Dev.
Auth.,
Series B,
VRDN,
3.20%,
3/7/24
2,210
2,210
Franklin
County,
Nationwide
Children's
Hospital,
VRDN,
3.21%,
3/7/24
3,200
3,200
Franklin
County,
Nationwide
Children's
Hospital,
Series B,
VRDN,
3.21%,
3/7/24
3,300
3,300
Harris
County
Hosp.
Dist.,
Series 2010,
VRDN,
3.32%,
3/7/24
1,865
1,865
Harrisonburg
Economic
Dev.
Auth.,
Sentara
Healthcare,
VRDN,
3.30%,
3/7/24
2,400
2,400
Hennepin
County,
Series B,
GO,
VRDN,
3.30%,
3/7/24
6,850
6,850
Highlands
County
HFA,
Hospital
Adventist
Health
System,
Series I-3,
VRDN,
3.30%,
3/7/24
145
145
T.
ROWE
PRICE
Tax-Exempt
Money
Fund
Par
$
Value
(Amounts
in
000s)
Houston
Combined
Utility
System,
Series B-2,
VRDN,
3.57%,
3/7/24
2,500
2,500
Houston
Combined
Utility
System,
Series C,
VRDN,
3.57%,
3/7/24
5,700
5,700
Howard
County
Housing
Commission,
Beech's
Farm
Apartments,
VRDN,
3.30%,
3/7/24
8,890
8,890
Illinois
EFA,
Univ.
of
Chicago,
Series B,
VRDN,
3.30%,
3/7/24
1,615
1,615
Illinois
EFA,
Univ.
of
Chicago,
Series C,
VRDN,
3.30%,
3/7/24
1,600
1,600
Illinois
Fin.
Auth.,
Northwestern
Memorial
Healthcare,
Series E,
VRDN,
3.20%,
3/7/24
6,800
6,800
Illinois
Fin.
Auth.,
Univ.
of
Chicago
Medical,
VRDN,
3.36%,
3/7/24
1,000
1,000
Illinois
Fin.
Auth.,
Univ.
of
Chicago
Medical,
Series B,
VRDN,
3.25%,
3/7/24
6,000
6,000
Indiana
Fin.
Auth.,
Ascension
Health
Alliance,
Series E-4,
VRDN,
3.30%,
3/7/24
900
900
Indiana
Fin.
Auth.,
Parkview
Health
System,
Series B,
VRDN,
3.25%,
3/7/24
6,800
6,800
Iowa
Fin.
Auth.,
Unity
Point
Health,
Series C,
VRDN,
3.20%,
3/7/24
100
100
Jacksonville,
Baptist
Health,
Series B,
VRDN,
3.30%,
3/7/24
6,755
6,755
JEA
Electric
System,
Series 3-A,
VRDN,
3.30%,
3/7/24
6,385
6,385
JEA
Electric
System,
Series 3C-1,
VRDN,
3.25%,
3/7/24
675
675
Lehigh
County,
Lehigh
Valley
Health
Network,
Series B,
VRDN,
3.40%,
3/7/24
6,650
6,650
Long
Island
Power
Auth.,
Series D,
VRDN,
3.20%,
3/7/24
1,000
1,000
Loudoun
County
Economic
Dev.
Auth.,
Howard
Hughes
Medical,
Series E,
VRDN,
3.36%,
3/7/24
4,500
4,500
Louisiana
Public
Fac.
Auth.,
Series B-1,
VRDN,
3.22%,
3/7/24
2,000
2,000
Louisiana
Public
Fac.
Auth.,
Series B-3,
VRDN,
3.20%,
3/7/24
4,000
4,000
Louisiana
Public
Fac.
Auth.,
Louisiana
Children's
Medical
Center,
Series B,
VRDN,
3.30%,
3/7/24
2,000
2,000
Louisiana
Public
Fac.
Auth.,
Louisiana
Children's
Medical
Center,
Series B,
VRDN,
3.43%,
3/7/24
4,500
4,500
Maryland
CDA,
Kirkwood
Housing,
Series G,
VRDN,
3.30%,
3/7/24
6,025
6,025
Maryland
Economic
Dev.,
Howard
Hughes
Medical,
Series A,
VRDN,
3.36%,
3/7/24
2,185
2,185
Maryland
Stadium
Auth.,
Football
Stadium,
VRDN,
3.51%,
3/7/24
7,990
7,990
Metropolitan
Washington
Airports
Auth.
Aviation
Revenue,
Series D-1,
VRDN,
3.30%,
3/7/24
2,000
2,000
Minneapolis,
Fairview
Health
Services,
Series B,
VRDN,
3.25%,
3/7/24
6,000
6,000
Mississippi
Business
Fin.,
Series A,
VRDN,
3.30%,
3/7/24
4,545
4,545
Missouri
HEFA,
Ascension
Health
Senior
Credit
Group,
Series C-5,
VRDN,
3.15%,
3/7/24
3,500
3,500
Missouri
HEFA,
BJC
Health
System,
Series C,
VRDN,
3.30%,
3/7/24
6,750
6,750
T.
ROWE
PRICE
Tax-Exempt
Money
Fund
Par
$
Value
(Amounts
in
000s)
Missouri
HEFA,
SSM
Health
Care,
Series F,
VRDN,
3.29%,
3/7/24
6,500
6,500
Missouri
HEFA,
SSM
Health
Care,
Series G,
VRDN,
3.29%,
3/7/24
200
200
Montgomery
County
Housing
Opportunities
Commission,
Series C,
VRDN,
3.30%,
3/7/24
3,000
3,000
Montgomery
County
Housing
Opportunities
Commission,
Series D,
VRDN,
3.30%,
3/7/24
300
300
Montgomery
County
Housing
Opportunities
Commission,
Housing
Dev.,
Series A,
VRDN,
3.30%,
3/7/24
5,990
5,990
Montgomery
County
Housing
Opportunities
Commission,
Sustainable
Bond,
Series A,
VRDN,
3.65%,
3/1/24
100
100
Nebraska
Investment
Fin.
Auth.,
Series C,
VRDN,
3.15%,
3/7/24
5,000
5,000
Nebraska
Investment
Fin.
Auth.,
Series E,
VRDN,
3.15%,
3/7/24
1,900
1,900
New
York
City
Housing
Dev.,
201
Pearl
Street,
Multi-Family,
Series A,
VRDN,
3.30%,
3/7/24
1,740
1,740
New
York
State
Dormitory
Auth.,
Rockefeller
Univ.,
Series A,
VRDN,
3.20%,
3/7/24
2,000
2,000
New
York
State
Housing
Fin.
Agency,
Clinton
Park,
Series A,
VRDN,
3.35%,
3/7/24
6,400
6,400
New
York
State
Housing
Fin.
Agency,
Housing
Related
Taconic,
Series A,
VRDN,
3.20%,
3/7/24
6,700
6,700
Norfolk
Economic
Dev.
Auth.,
Sentara
Healthcare,
Series A,
VRDN,
3.25%,
3/7/24
3,980
3,980
Oakland
Univ.,
VRDN,
3.20%,
3/7/24
935
935
Ohio
Cleveland
Clinic
Health
System,
Series D-1,
VRDN,
3.20%,
3/7/24
3,395
3,395
Ohio
State
Univ.,
Multi-year
Debt
Issuance
Program
II,
Series A-1,
VRDN,
3.20%,
3/7/24
3,000
3,000
Ohio
State
Univ.,
Multi-year
Debt
Issuance
Program
II,
Series D-2,
VRDN,
3.05%,
3/7/24
4,000
4,000
Orange
County
HFA,
Series E,
VRDN,
3.30%,
3/7/24
1,500
1,500
Oregon,
Veterans
Welfare,
Series P,
GO,
VRDN,
3.30%,
3/7/24
3,200
3,200
Pennsylvania
Turnpike
Commission,
Second Series,
VRDN,
3.30%,
3/7/24
2,900
2,900
Pennsylvania
Turnpike
Commission,
Series B,
VRDN,
3.30%,
3/7/24
1,500
1,500
Rhode
Island
Health
&
Ed.
Building,
Series A,
VRDN,
3.53%,
3/7/24
5,470
5,470
Rhode
Island
Health
&
Ed.
Building,
Series B,
VRDN,
3.25%,
3/7/24
1,450
1,450
Rochester
City,
Mayo
Clinic,
Series A,
VRDN,
3.40%,
3/7/24
3,100
3,100
South
Dakota
HEFA,
Sioux
VY
Hosp.,
Series B,
VRDN,
3.30%,
3/7/24
4,390
4,390
Tarrant
County
Cultural
Ed.
Fac.
Fin.,
Christus
Health
System,
Series C-4,
VRDN,
3.20%,
3/7/24
1,000
1,000
Tarrant
County
Cultural
Ed.
Fac.
Fin.,
Texas
Health
Resources
System,
Series A,
VRDN,
3.30%,
3/7/24
1,950
1,950
T.
ROWE
PRICE
Tax-Exempt
Money
Fund
Par
$
Value
(Amounts
in
000s)
Tarrant
County
Cultural
Ed.
Fac.
Fin.,
Texas
Health
Resources
System,
Series B,
VRDN,
3.15%,
3/7/24
1,315
1,315
Tarrant
County
Cultural
Ed.
Fac.
Fin.,
Texas
Health
Resources
System,
Series B,
VRDN,
3.30%,
3/7/24
2,500
2,500
Tarrant
County
Cultural
Ed.
Fac.
Fin.,
Texas
Health
Resources
System,
Series C,
VRDN,
3.30%,
3/7/24
740
740
Texas,
Veterans,
GO,
VRDN,
3.40%,
3/7/24
1,080
1,080
Texas,
Veterans,
Series 2017,
GO,
VRDN,
3.40%,
3/7/24
2,345
2,345
Texas,
Veterans,
Series 2018,
GO,
VRDN,
3.40%,
3/7/24
660
660
Texas,
Veterans,
Series B,
GO,
VRDN,
3.25%,
3/7/24
2,000
2,000
Texas,
Veterans
Housing
Assistance
Program,
Series C,
GO,
VRDN,
3.40%,
3/7/24
2,675
2,675
Univ.
of
Colorado
Hosp.
Auth.,
Series A,
VRDN,
3.30%,
3/7/24
7,200
7,200
Utah
County,
IHC
Health
Services,
Series B,
VRDN,
3.30%,
3/7/24
2,730
2,730
Virginia
College
Building
Auth.,
Univ.
of
Richmond
Project,
VRDN,
3.30%,
3/7/24
1,500
1,500
Virginia
Small
Business
Fin.
Auth.,
Carilion
Clinic,
Series A,
VRDN,
3.30%,
3/7/24
4,000
4,000
Virginia
Small
Business
Fin.
Auth.,
Carilion
Clinic,
Series B,
VRDN,
3.30%,
3/7/24
1,800
1,800
Wisconsin
Housing
&
Economic
Dev.
Auth.,
Series C,
VRDN,
3.30%,
3/7/24
3,470
3,470
Wisconsin
Housing
&
Economic
Dev.
Auth.
Home
Ownership
Revenue,
Series C,
VRDN,
3.30%,
3/7/24
3,000
3,000
Wisconsin
Housing
&
Economic
Dev.
Auth.
Housing
Revenue,
Series C,
VRDN,
3.30%,
3/7/24
7,500
7,500
Total
Variable
Rate
Demand
Notes
(Cost
$309,335)
309,335
Total
Investments
in
Securities
99.6%
of
Net
Assets
(Cost
$673,723)
$
673,723
‡
Par
is
denominated
in
U.S.
dollars
unless
otherwise
noted.
(1)
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
$119,785
and
represents
17.7%
of
net
assets.
(2)
Insured
by
AMBAC
Assurance
Corporation
(3)
When-issued
security
(4)
Insured
by
Build
America
Mutual
Assurance
Company
(5)
Insured
by
Assured
Guaranty
Municipal
Corporation
BAN
Bond
Anticipation
Note
CDA
Community
Development
Administration/Authority
COP
Certificate
of
Participation
DOT
Department
of
Transportation
EFA
Educational
Facility
Authority
T.
ROWE
PRICE
Tax-Exempt
Money
Fund
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
.
.
.
.
.
.
.
.
.
.
GO
General
Obligation
HEFA
Health
&
Educational
Facility
Authority
HFA
Health
Facility
Authority
HFFA
Health
Facility
Financing
Authority
HHEFA
Health
&
Higher
Educational
Facility
Authority
IDA
Industrial
Development
Authority/Agency
TAN
Tax
Anticipation
Note
TECP
Tax-Exempt
Commercial
Paper
TRAN
Tax
Revenue
Anticipation
Note
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
the
date
principal
can
be
demanded.
Certain
VRDN
rates
are
not
based
on
a
published
reference
rate
and
spread
but
may
adjust
periodically.
VRTR
Variable
Rate
Trust
Receipt
is
a
synthetic
variable
rate
instrument
which
entitles
the
holder
to
sell
the
security
to
the
issuer
or
its
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
the
date
principal
can
be
demanded.
Certain
VRTR
rates
are
not
based
on
a
published
reference
rate
and
spread
but
may
adjust
periodically.
T.
ROWE
PRICE
Tax-Exempt
Money
Fund
February
29,
2024
Statement
of
Assets
and
Liabilities
($000s,
except
shares
and
per
share
amounts)
Assets
Investments
in
securities,
at
value
(cost
$673,723)
$
673,723
Interest
receivable
5,015
Receivable
for
investment
securities
sold
3,403
Receivable
for
shares
sold
453
Cash
43
Other
assets
26
Total
assets
682,663
Liabilities
Payable
for
investment
securities
purchased
4,490
Payable
for
shares
redeemed
678
Investment
management
fees
payable
102
Due
to
affiliates
27
Other
liabilities
1,186
Total
liabilities
6,483
Commitments
and
Contingent
Liabilities
(note
5
)
NET
ASSETS
$
676,180
T.
ROWE
PRICE
Tax-Exempt
Money
Fund
February
29,
2024
Statement
of
Assets
and
Liabilities
($000s,
except
shares
and
per
share
amounts)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Net
Assets
Consist
of:
Total
distributable
earnings
(loss)
$
(32)
Paid-in
capital
applicable
to
675,426,208
shares
of
$0.01
par
value
capital
stock
outstanding;
5,000,000,000
shares
authorized
676,212
NET
ASSETS
$
676,180
NET
ASSET
VALUE
PER
SHARE
Investor
Class
(Net
assets:
$170,492;
Shares
outstanding:
170,302,554)
$
1.00
I
Class
(Net
assets:
$505,688;
Shares
outstanding:
505,123,654)
$
1.00
T.
ROWE
PRICE
Tax-Exempt
Money
Fund
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Year
Ended
2/29/24
Investment
Income
(Loss)
Income
Interest
$
22,430
Other
1
Total
income
22,431
Expenses
Investment
management
1,254
Shareholder
servicing
Investor
Class
$
293
I
Class
67
360
Prospectus
and
shareholder
reports
Investor
Class
3
I
Class
7
10
Custody
and
accounting
188
Registration
61
Legal
and
audit
25
Directors
2
Proxy
and
annual
meeting
2
Miscellaneous
49
Waived
/
paid
by
Price
Associates
(47)
Total
expenses
1,904
Net
investment
income
20,527
Realized
and
Unrealized
Gain
/
Loss
–
Net
realized
loss
on
securities
(1)
INCREASE
IN
NET
ASSETS
FROM
OPERATIONS
$
20,526
T.
ROWE
PRICE
Tax-Exempt
Money
Fund
Statement
of
Changes
in
Net
Assets
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Year
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Ended
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
2/29/24
2/28/23
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
$
20,527
$
8,570
Net
realized
gain
(loss)
(1)
3
Increase
in
net
assets
from
operations
20,526
8,573
Distributions
to
shareholders
Net
earnings
Investor
Class
(5,142)
(2,111)
I
Class
(15,463)
(6,458)
Decrease
in
net
assets
from
distributions
(20,605)
(8,569)
Capital
share
transactions
*
Shares
sold
Investor
Class
104,268
123,478
I
Class
193,402
343,214
Distributions
reinvested
Investor
Class
5,007
2,046
I
Class
14,607
6,142
Shares
redeemed
Investor
Class
(114,762)
(223,770)
I
Class
(189,339)
(224,464)
Increase
in
net
assets
from
capital
share
transactions
13,183
26,646
Net
Assets
Increase
during
period
13,104
26,650
Beginning
of
period
663,076
636,426
End
of
period
$
676,180
$
663,076
*
Capital
share
transactions
at
net
asset
value
of
$1.00
per
share.
T.
ROWE
PRICE
Tax-Exempt
Money
Fund
NOTES
TO
FINANCIAL
STATEMENTS
T.
Rowe
Price
Tax-Exempt
Money
Fund,
Inc.
(the
fund) is
registered
under
the
Investment
Company
Act
of
1940
(the
1940
Act)
as a
diversified, open-end
management
investment
company. The
fund
seeks
to
provide
preservation
of
capital,
liquidity,
and,
consistent
with
these
objectives,
the
highest
current
income
exempt
from
federal
income
taxes.
The
fund
intends
to
operate
as
a
retail
money
market
fund
and
has
the
ability
to impose
liquidity
fees
on
redemptions if
the
fund’s
Board
of
Directors
determine
that
doing
so
is
in
the
best
interests
of
the
shareholders.
The
fund
has two classes
of
shares:
the
Tax-Exempt
Money
Fund
(Investor
Class)
and
the
Tax-Exempt
Money
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. Income
tax-related
interest
and
penalties,
if
incurred,
are
recorded
as
income
tax
expense. Distributions
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
T.
ROWE
PRICE
Tax-Exempt
Money
Fund
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.
New
Accounting
Guidance
The
FASB
issued
Accounting
Standards
Update
(ASU),
ASU
2020–04,
Reference
Rate
Reform
(Topic
848) –
Facilitation
of
the
Effects
of
Reference
Rate
Reform
on
Financial
Reporting
in
March
2020
and
ASU
2021-01
in
January
2021
which
provided
further
amendments
and
clarifications
to
Topic
848.
These
ASUs provide
optional,
temporary
relief
with
respect
to
the
financial
reporting
of
contracts
subject
to
certain
types
of
modifications
due
to
the
planned
discontinuation
of
the
London
Interbank
Offered
Rate
(LIBOR),
and
other
interbank-offered
based
reference
rates,
through December
31,
2022.
In
December
2022,
FASB
issued
ASU
2022-
06
which
defers
the
sunset
date
of
Topic
848
from
December
31,
2022
to
December
31,
2024,
after
which
entities
will
no
longer
be
permitted
to
apply
the
relief
in
Topic
848.
Management
intends
to
rely
upon
the
relief
provided
under
Topic
848,
which
is
not
expected to
have
a
material
impact
on
the fund's
financial
statements.
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
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.
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.
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
T.
ROWE
PRICE
Tax-Exempt
Money
Fund
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
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
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.
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.
In
accordance
with
Rule
2a-7
under
the
1940
Act,
the
fund
values
its
securities
at
amortized
cost,
which
approximates
fair
value.
Securities
for
which
amortized
cost
is
deemed
not
to
reflect
fair
value
are
stated
at
fair
value
as
determined
in
good
faith
by
the
Valuation
Designee,
in
accordance
with
fair
valuation
policies
and
procedures.
On
February
29,
2024,
all
of
the
fund’s
financial
instruments
were
classified
as
Level
2
in
the
fair
value
hierarchy.
T.
ROWE
PRICE
Tax-Exempt
Money
Fund
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.
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.
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.
The
fund
files
U.S.
federal,
state,
and
local
tax
returns
as
required.
The
fund’s
tax
returns
are
subject
to
examination
by
the
relevant
tax
authorities
until
expiration
of
the
applicable
statute
of
limitations,
which
is
generally
three
years
after
the
filing
of
the
tax
return
but
which
can
be
extended
to
six
years
in
certain
circumstances.
Tax
returns
for
open
years
have
incorporated
no
uncertain
tax
positions
that
require
a
provision
for
income
taxes.
Capital
accounts
within
the
financial
reporting
records
are
adjusted
for
permanent
book/tax
differences
to
reflect
tax
character
but
are
not
adjusted
for
temporary
differences.
The
permanent
book/tax
adjustments,
if
any,
have
no
impact
on
results
of
operations
or
net
assets.
T.
ROWE
PRICE
Tax-Exempt
Money
Fund
The
tax
character
of
distributions
paid
for
the
periods
presented
was
as
follows:
At
February
29,
2024,
the
tax-basis
cost
of
investments was as
follows:
At
February
29,
2024,
the
tax-basis
components
of
accumulated
net
earnings
(loss)
were
as
follows:
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
equal
to 0.19%
of
the
fund’s
average
daily
net
assets.
The
fee
is
computed
daily
and
paid
monthly.
The Investor
Class is
subject
to
a
contractual
expense
limitation
through
the
expense
limitation
date
indicated
in
the
table
below.
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
($000s)
February
29,
2024
February
28,
2023
Ordinary
income
(including
short-term
capital
gains,
if
any)
$
—
$
3
Tax-exempt
income
20,605
8,560
Long-term
capital
gain
—
6
Total
distributions
$
20,605
$
8,569
($000s)
Cost
of
investments
$
673,723
($000s)
Overdistributed
tax-exempt
loss
$
(32)
Total
distributable
earnings
(loss)
$
(32)
T.
ROWE
PRICE
Tax-Exempt
Money
Fund
taken
into
account)
to
exceed
the
lesser
of:
(1)
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
year ended February
29,
2024
as
indicated
in
the
table
below.
Including these
amounts,
expenses
previously
waived/paid
by
Price
Associates
in
the
amount
of $145,000 remain
subject
to
repayment
by
the
fund
at
February
29,
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.
Price
Associates
may
voluntarily
waive
all
or
a
portion
of
its
management
fee
and
reimburse
operating
expenses
to
the
extent
necessary
for
the
fund
to
maintain
a
zero
or
positive
net
yield
(voluntary
waiver).
This
voluntary
waiver
is
in
addition
to
the
contractual
expense
limit
in
effect
for
the
fund. Any
amounts
waived/paid
by
Price
Associates
under
this
voluntary
agreement
are
not
subject
to
repayment
by
the
fund.
Price
Associates
may
amend
or
terminate
this
voluntary
arrangement
at
any
time
without
prior
notice.
For
the
year ended
February
29,
2024,
the
fund
had
no
voluntary
waivers.
Investor
Class
I
Class
Expense
limitation/I
Class
Limit
0.45%
0.05%
Expense
limitation
date
06/30/24
06/30/24
(Waived)/repaid
during
the
period
($000s)
$—
$(47)
T.
ROWE
PRICE
Tax-Exempt
Money
Fund
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
year
ended
February
29,
2024,
expenses
incurred
pursuant
to
these
service
agreements
were
$107,000
for
Price
Associates
and
$296,000
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
year
ended
February
29,
2024,
the
aggregate
value
of
purchases
and
sales
cross
trades
with
other
funds
or
accounts
advised
by
Price
Associates
was
less
than
1%
of
the
fund’s
net
assets
as
of
February
29,
2024.
NOTE
6
-
OTHER
MATTERS
Unpredictable
events
such
as
environmental
or
natural
disasters,
war
and
conflict,
terrorism,
geopolitical
events,
and
public
health
epidemics and
similar
public
health
threats
may
significantly
affect
the
economy
and
the
markets
and
issuers
in
which
the fund
invests.
Certain
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
global
outbreak
of
COVID-19
and
the
related
governmental
and
public
responses
have
led
and
may
continue
to
lead
to
increased
market
volatility
and
the
potential
for
illiquidity
in
certain
classes
of
securities
and
sectors
of
the
market
either
in
specific
countries
or
worldwide.
T.
ROWE
PRICE
Tax-Exempt
Money
Fund
In
February
2022,
Russian
forces
entered
Ukraine
and
commenced
an
armed
conflict,
leading
to
economic
sanctions imposed
on
Russia
that
target certain
of
its
citizens
and
issuers
and
sectors
of
the
Russian
economy,
creating
impacts
on
Russian-related
stocks
and
debt
and
greater
volatility
in
global
markets.
In
March
2023,
the
banking
industry
experienced
heightened
volatility,
which
sparked
concerns
of
potential
broader
adverse
market
conditions.
The
extent
of
impact
of
these
events
on
the
US
and
global
markets
is
highly
uncertain.
These
are
recent
examples
of
global
events
which
may
have
a
negative
impact
on
the
values
of
certain
portfolio
holdings
or
the
fund's
overall
performance.
Management
is
actively
monitoring
the
risks
and
financial
impacts
arising
from
these
events.
T.
ROWE
PRICE
Tax-Exempt
Money
Fund
REPORT
OF
INDEPENDENT
REGISTERED
PUBLIC
ACCOUNTING
FIRM
To
the
Board
of
Directors
and
Shareholders
of
T.
Rowe
Price
Tax-Exempt
Money
Fund,
Inc.
Opinion
on
the
Financial
Statements
We
have
audited
the
accompanying
statement
of
assets
and
liabilities,
including
the
portfolio
of
investments,
of
T.
Rowe
Price
Tax-Exempt
Money
Fund,
Inc.
(the
"Fund")
as
of
February
29,
2024,
the
related
statement
of
operations
for
the
year
ended
February
29,
2024,
the
statement
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
ended
February
29,
2024,
including
the
related
notes,
and
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
February
29,
2024
(collectively
referred
to
as
the
“financial
statements”).
In
our
opinion,
the
financial
statements
present
fairly,
in
all
material
respects,
the
financial
position
of
the
Fund
as
of
February
29,
2024,
the
results
of
its
operations
for
the
year
then
ended,
the
changes
in
its
net
assets
for
each
of
the
two
years
in
the
period
ended
February
29,
2024
and
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
February
29,
2024
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America.
Basis
for
Opinion
These
financial
statements
are
the
responsibility
of
the
Fund’s
management.
Our
responsibility
is
to
express
an
opinion
on
the
Fund’s
financial
statements
based
on
our
audits.
We
are
a
public
accounting
firm
registered
with
the
Public
Company
Accounting
Oversight
Board
(United
States)
(PCAOB)
and
are
required
to
be
independent
with
respect
to
the
Fund
in
accordance
with
the
U.S.
federal
securities
laws
and
the
applicable
rules
and
regulations
of
the
Securities
and
Exchange
Commission
and
the
PCAOB.
We
conducted
our
audits
of
these
financial
statements
in
accordance
with
the
standards
of
the
PCAOB.
Those
standards
require
that
we
plan
and
perform
the
audit
to
obtain
reasonable
assurance
about
whether
the
financial
statements
are
free
of
material
misstatement,
whether
due
to
error
or
fraud.
T.
ROWE
PRICE
Tax-Exempt
Money
Fund
Our
audits
included
performing
procedures
to
assess
the
risks
of
material
misstatement
of
the
financial
statements,
whether
due
to
error
or
fraud,
and
performing
procedures
that
respond
to
those
risks.
Such
procedures
included
examining,
on
a
test
basis,
evidence
regarding
the
amounts
and
disclosures
in
the
financial
statements.
Our
audits
also
included
evaluating
the
accounting
principles
used
and
significant
estimates
made
by
management,
as
well
as
evaluating
the
overall
presentation
of
the
financial
statements.
Our
procedures
included
confirmation
of
securities
owned
as
of
February
29,
2024
by
correspondence
with
the
custodian
and
brokers;
when
replies
were
not
received
from
brokers,
we
performed
other
auditing
procedures.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinion.
/s/
PricewaterhouseCoopers
LLP
Baltimore,
Maryland
April
18,
2024
We
have
served
as
the
auditor
of
one
or
more
investment
companies
in
the
T.
Rowe
Price
group
of
investment
companies
since
1973.
REPORT
OF
INDEPENDENT
REGISTERED
PUBLIC
ACCOUNTING
FIRM
(continued)
T.
ROWE
PRICE
Tax-Exempt
Money
Fund
TAX
INFORMATION
(UNAUDITED)
FOR
THE
TAX
YEAR
ENDED 2/29/24
We
are
providing
this
information
as
required
by
the
Internal
Revenue
Code.
The
amounts
shown
may
differ
from
those
elsewhere
in
this
report
because
of
differences
between
tax
and
financial
reporting
requirements.
The
fund’s
distributions
to
shareholders
included
$20,296,000
which
qualified
as
exempt-interest
dividends.
INFORMATION
ON
PROXY
VOTING
POLICIES,
PROCEDURES,
AND
RECORDS
A
description
of
the
policies
and
procedures
used
by
T.
Rowe
Price
funds
to
determine
how
to
vote
proxies
relating
to
portfolio
securities
is
available
in
each
fund’s
Statement
of
Additional
Information.
You
may
request
this
document
by
calling
1-800-225-5132
or
by
accessing
the
SEC’s
website,
sec.gov.
The
description
of
our
proxy
voting
policies
and
procedures
is
also
available
on
our
corporate
website.
To
access
it,
please
visit
the
following
Web
page:
https://www.troweprice.com/corporate/us/en/utility/policies.html
Scroll
down
to
the
section
near
the
bottom
of
the
page
that
says,
“Proxy
Voting
Guidelines.”
Click
on
the
links
in
the
shaded
box.
Each
fund’s
most
recent
annual
proxy
voting
record
is
available
on
our
website
and
through
the
SEC’s
website.
To
access
it
through
T.
Rowe
Price,
visit
the
website
location
shown
above,
and
scroll
down
to
the
section
near
the
bottom
of
the
page
that
says,
“Proxy
Voting
Records.”
Click
on
the
Proxy
Voting
Records
link
in
the
shaded
box.
HOW
TO
OBTAIN
QUARTERLY
PORTFOLIO
HOLDINGS
The
fund
files
its
complete
schedule
of
portfolio
holdings
with
the
Securities
and
Exchange
Commission
(SEC)
each
month
on
Form
N-MFP. The
fund’s
reports
on
Form
N-MFP
are
available on
the
SEC’s
website
(sec.gov).
In
addition,
most
T.
Rowe
Price
funds
disclose
their portfolio
holdings
information
on
troweprice.com
.
TAILORED
SHAREHOLDER
REPORTS
FOR
MUTUAL
FUNDS
AND
EXCHANGE
TRADED
FUNDS
In
October
2022,
the
Securities
and
Exchange
Commission
(SEC)
adopted
rule
and
form
amendments
requiring
Mutual
Funds
and
Exchange-Traded
Funds
to
transmit
concise
and
visually
engaging
streamlined
annual
and
semiannual
reports
that
highlight
key
information
to
shareholders.
Other
information,
including
financial
statements,
will
no
longer
appear
in
the
funds’
shareholder
reports
but
will
be
available
online,
delivered
free
of
charge
upon
request,
and
filed
on
a
semiannual
basis
on
Form
N-CSR.
The
rule
and
form
amendments
have
a
compliance
date
of
July
24,
2024.
T.
ROWE
PRICE
Tax-Exempt
Money
Fund
ABOUT
THE
FUND'S
DIRECTORS
AND
OFFICERS
Your
fund
is
overseen
by
a
Board
of
Directors
(Board)
that
meets
regularly
to
review
a
wide
variety
of
matters
affecting
or
potentially
affecting
the
fund,
including
performance,
investment
programs,
compliance
matters,
advisory
fees
and
expenses,
service
providers,
and
business
and
regulatory
affairs.
The
Board
elects
the
fund’s
officers,
who
are
listed
in
the
final
table.
The
directors
who
are
also
employees
or
officers
of
T.
Rowe
Price
are
considered
to
be
“interested”
directors
as
defined
in
Section
2(a)(19)
of
the
1940
Act
because
of
their
relationships
with
T.
Rowe
Price
Associates,
Inc. (T.
Rowe
Price),
and
its
affiliates.
The
business
address
of
each
director
and
officer
is
100
East
Pratt
Street,
Baltimore,
Maryland
21202.
The
Statement
of
Additional
Information
includes
additional
information
about
the
fund
directors
and
is
available
without
charge
by
calling
a
T.
Rowe
Price
representative
at
1-800-638-5660.
INDEPENDENT
DIRECTORS
(a)
Name
(Year
of
Birth)
Year
Elected
[Number
of
T.
Rowe
Price
Portfolios
Overseen]
Principal
Occupation(s)
and
Directorships
of
Public
Companies
and
Other
Investment
Companies
During
the
Past
Five
Years
Teresa
Bryce
Bazemore
(1959)
2018
[193]
President
and
Chief
Executive
Officer,
Federal
Home
Loan
Bank
of
San
Francisco
(2021
to
present),
and
Director
of
the
FHLBanks
Office
of
Finance;
Chief
Executive
Officer,
Bazemore
Consulting
LLC
(2018
to
2021);
Director,
Chimera
Investment
Corporation
(2017
to
2021);
Director,
First
Industrial
Realty
Trust
(2020
to
present);
Director,
Federal
Home
Loan
Bank
of
Pittsburgh
(2017
to
2019)
Melody
Bianchetto
(1966)
2023
[193]
Vice
President
for
Finance,
University
of
Virginia
(2015
to
2023)
Bruce
W.
Duncan
(1951)
2013
[193]
President,
Chief
Executive
Officer,
and
Director,
CyrusOne,
Inc.
(2020
to
2021);
Chair
of
the
Board
(2016
to
2020)
and
President
(2009
to
2016),
First
Industrial
Realty
Trust,
owner
and
operator
of
industrial
properties;
Member,
Investment
Company
Institute
Board
of
Governors
(2017
to
2019);
Member,
Independent
Directors
Council
Governing
Board
(2017
to
2019);
Senior
Advisor,
KKR
(2018
to
2022);
Director,
Boston
Properties
(2016
to
present);
Director,
Marriott
International,
Inc.
(2016
to
2020)
Robert
J.
Gerrard,
Jr.
(1952)
2013
[193]
Chair
of
the
Board,
all
funds
(July
2018
to
present)
Paul
F.
McBride
(1956)
2013
[193]
Advisory
Board
Member,
Vizzia
Technologies
(2015
to
present);
Board
Member,
Dunbar
Armored
(2012
to
2018)
T.
ROWE
PRICE
Tax-Exempt
Money
Fund
INTERESTED
DIRECTORS
(a)
Name
(Year
of
Birth)
Year
Elected
[Number
of
T.
Rowe
Price
Portfolios
Overseen]
Principal
Occupation(s)
and
Directorships
of
Public
Companies
and
Other
Investment
Companies
During
the
Past
Five
Years
Mark
J.
Parrell
(1966)
2023
[193]
Board
of
Trustees
Member
and
Chief
Executive
Officer
(2019
to
present),
President,
EQR
(2018
to
present),
Executive
Vice
President
and
Chief
Financial
Officer,
EQR
(2007
to
2018),
and
Senior
Vice
President
and
Treasurer,
EQR
(2005
to
2007);
Member,
Nareit
Dividends
Through
Diversity,
Equity
&
Inclusion
CEO
Council,
Treasurer
of
Nareit
(2023),
and
Chair,
Nareit
2021
Audit
and
Investment
Committee
(2021);
Advisory
Board,
Ross
Business
School
at
University
of
Michigan
(2015
to
2016);
Member,
National
Multifamily
Housing
Council
and
served
as
Chair
of
the
Finance
Committee
(2015
to
2016);
Member,
Economic
Club
of
Chicago;
Director,
Brookdale
Senior
Living,
Inc.
(2015
to
2017);
Director,
Aviv
REIT,
Inc.
(2013
to
2015);
Director,
Real
Estate
Roundtable
and
the
2022
Executive
Board
Nareit;
Board
of
Directors
and
Chair
of
the
Finance
Committee,
Greater
Chicago
Food
Depository
Kellye
L.
Walker
(1966)
2021
[193]
Executive
Vice
President
and
Chief
Legal
Officer,
Eastman
Chemical
Company
(April
2020
to
present);
Executive
Vice
President
and
Chief
Legal
Officer,
Huntington
Ingalls
Industries,
Inc.
(January
2015
to
March
2020);
Director,
Lincoln
Electric
Company
(October
2020
to
present)
(a)
All
information
about
the
independent
directors
was
current
as
of
December
31,
2023,
unless
otherwise
indicated,
except
for
the
number
of
portfolios
overseen,
which
is
current
as
of
the
date
of
this
report.
Name
(Year
of
Birth)
Year
Elected
[Number
of
T.
Rowe
Price
Portfolios
Overseen]
Principal
Occupation(s)
and
Directorships
of
Public
Companies
and
Other
Investment
Companies
During
the
Past
Five
Years
David
Oestreicher
(1967)
2018
[193]
Director,
Vice
President,
and
Secretary,
T.
Rowe
Price,
T.
Rowe
Price
Investment
Services,
Inc.,
T.
Rowe
Price
Retirement
Plan
Services,
Inc.,
and
T.
Rowe
Price
Services,
Inc.;
Director
and
Secretary,
T.
Rowe
Price
Investment
Management,
Inc.
(Price
Investment
Management);
Vice
President
and
Secretary,
T.
Rowe
Price
International
(Price
International);
Vice
President,
T.
Rowe
Price
Australia,
T.
Rowe
Price
Hong
Kong
(Price
Hong
Kong),
T.
Rowe
Price
Japan
(Price
Japan),
and
T.
Rowe
Price
Singapore
(Price
Singapore);
General
Counsel,
Vice
President,
and
Secretary,
T.
Rowe
Price
Group,
Inc.;
Chair
of
the
Board,
Chief
Executive
Officer,
President,
and
Secretary,
T.
Rowe
Price
Trust
Company;
Principal
Executive
Officer
and
Executive
Vice
President,
all
funds
INDEPENDENT
DIRECTORS
(a)
(CONTINUED)
T.
ROWE
PRICE
Tax-Exempt
Money
Fund
OFFICERS
Name
(Year
of
Birth)
Year
Elected
[Number
of
T.
Rowe
Price
Portfolios
Overseen]
Principal
Occupation(s)
and
Directorships
of
Public
Companies
and
Other
Investment
Companies
During
the
Past
Five
Years
Eric
L.
Veiel,
CFA
(1972)
2022
[193]
Director
and
Vice
President,
T.
Rowe
Price;
Vice
President,
T.
Rowe
Price
Group,
Inc.,
and
T.
Rowe
Price
Trust
Company;
Vice
President,
Global
Funds
(a)
All
information
about
the
interested
directors
was
current
as
of
December
31,
2023,
unless
otherwise
indicated,
except
for
the
number
of
portfolios
overseen,
which
is
current
as
of
the
date
of
this
report.
Name
(Year
of
Birth)
Position
Held
With Tax-Exempt
Money
Fund
Principal
Occupation(s)
Armando
(Dino)
Capasso
(1974)
Chief
Compliance
Officer
and
Vice
President
Chief
Compliance
Officer
and
Vice
President,
T.
Rowe
Price
and
Price
Investment
Management;
Vice
President,
T.
Rowe
Price
Group,
Inc.;
formerly,
Chief
Compliance
Officer,
PGIM
Investments
LLC
and
AST
Investment
Services,
Inc.
(ASTIS)
(to
2022);
Chief
Compliance
Officer,
PGIM
Retail
Funds
complex
and
Prudential
Insurance
Funds
(to
2022);
Vice
President
and
Deputy
Chief
Compliance
Officer,
PGIM
Investments
LLC
and
ASTIS
(to
2019)
Jean-Marc
Corredor
(1976)
Vice
President
Vice
President,
Price
International,
Price
Investment
Management,
T.
Rowe
Price
Investment
Services,
Inc.,
T.
Rowe
Price,
T.
Rowe
Price
Group,
Inc.,
and
T.
Rowe
Price
Trust
Company
Alan
S.
Dupski,
CPA
(1982)
Principal
Financial
Officer,
Vice
President,
and
Treasurer
Vice
President,
Price
Investment
Management,
T.
Rowe
Price,
T.
Rowe
Price
Group,
Inc.,
and
T.
Rowe
Price
Trust
Company
Cheryl
Emory
(1963)
Assistant
Secretary
Assistant
Vice
President
and
Assistant
Secretary,
T.
Rowe
Price;
Assistant
Secretary,
T.
Rowe
Price
Group,
Inc.,
Price
Investment
Management,
Price
International,
Price
Hong
Kong,
Price
Singapore,
T.
Rowe
Price
Investment
Services,
Inc.,
T.
Rowe
Price
Retirement
Plan
Services,
Inc.,
and
T.
Rowe
Price
Trust
Company
Kathryn
A.
Floyd,
CFA
(1982)
Vice
President
Employee,
T.
Rowe
Price
Unless
otherwise
noted,
officers
have
been
employees
of
T.
Rowe
Price
or
Price
International
for
at
least
5
years.
INTERESTED
DIRECTORS
(a)
(CONTINUED)
T.
ROWE
PRICE
Tax-Exempt
Money
Fund
Name
(Year
of
Birth)
Position
Held
With Tax-Exempt
Money
Fund
Principal
Occupation(s)
Cheryl
Hampton,
CPA
(1969)
Vice
President
Vice
President,
T.
Rowe
Price,
T.
Rowe
Price
Group,
Inc.,
and
T.
Rowe
Price
Trust
Company;
formerly,
Tax
Director,
Invesco
Ltd.
(to
2021);
Vice
President,
Oppenheimer
Funds,
Inc.
(to
2019)
Benjamin
Kersse,
CPA
(1989)
Vice
President
Vice
President,
T.
Rowe
Price
and
T.
Rowe
Price
Trust
Company
Paul
J.
Krug,
CPA
(1964)
Vice
President
Vice
President,
T.
Rowe
Price,
T.
Rowe
Price
Group,
Inc.,
and
T.
Rowe
Price
Trust
Company
Robert
P.
McDavid
(1972)
Vice
President
Vice
President,
T.
Rowe
Price, Price
Investment
Management, T.
Rowe
Price
Investment
Services,
Inc.,
and
T.
Rowe
Price
Trust
Company
Cheryl
A.
Mickel,
CFA
(1967)
Vice
President
Director
and
Vice
President,
T.
Rowe
Price
Trust
Company;
Vice
President,
T.
Rowe
Price
and
T.
Rowe
Price
Group,
Inc.
Alexander
S.
Obaza
(1981)
Co-president
Vice
President,
T.
Rowe
Price,
T.
Rowe
Price
Group,
Inc.,
and
T.
Rowe
Price
Trust
Company
Fran
M.
Pollack-Matz
(1961)
Vice
President
and
Secretary
Vice
President,
T.
Rowe
Price,
T.
Rowe
Price
Group,
Inc.,
T.
Rowe
Price
Investment
Services,
Inc., T.
Rowe
Price
Services,
Inc.,
and
T.
Rowe
Price
Trust
Company
Rachel
Protzman
(1988)
Vice
President
Vice
President,
T.
Rowe
Price
Kevin
Reilly
(1991)
Vice
President
Employee,
T.
Rowe
Price
Richard
Sennett,
CPA
(1970)
Assistant
Treasurer
Vice
President,
T.
Rowe
Price,
T.
Rowe
Price
Group,
Inc.,
and
T.
Rowe
Price
Trust
Company
Chen
Shao
(1980)
Vice
President
Vice
President,
T.
Rowe
Price
and
T.
Rowe
Price
Group,
Inc.
Douglas
D.
Spratley,
CFA
(1969)
Co-president
Vice
President,
T.
Rowe
Price,
T.
Rowe
Price
Group,
Inc.,
and
T.
Rowe
Price
Trust
Company
Mitch
Unger
(1986)
Vice
President
Vice
President,
T.
Rowe
Price
and
T.
Rowe
Price
Group,
Inc.
Blerina
Uruci
(1984)
Vice
President
Vice
President,
T.
Rowe
Price
and
T.
Rowe
Price
Group,
Inc.;
formerly,
Senior
U.S.
Economist,
Barclays
Capital
(to
2022)
Ellen
York
(1988)
Vice
President
Vice
President,
Price
Investment
Management
and
T.
Rowe
Price
Unless
otherwise
noted,
officers
have
been
employees
of
T.
Rowe
Price
or
Price
International
for
at
least
5
years.
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.
F52-050
4/24
Item 1. (b) Notice pursuant to Rule 30e-3.
Not applicable.
Item 2. Code of Ethics.
The registrant has adopted 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. A copy of this code of ethics is filed as an exhibit to this Form
N-CSR. No substantive amendments were approved or waivers were granted to this code of ethics during the period covered by this report.
Item 3. Audit Committee Financial Expert.
The
registrant’s Board of Directors has determined that Mr. Paul F. McBride qualifies as an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. McBride is considered
independent for purposes of Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services.
(a) – (d) Aggregate fees billed for the last two fiscal years for professional services rendered to, or on behalf of, the registrant by
the registrant’s principal accountant were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
|
|
|
|
2023 |
|
| |
Audit Fees |
|
$ |
24,796 |
|
|
|
|
|
|
$ |
23,429 |
|
| |
Audit-Related Fees |
|
|
- |
|
|
|
|
|
|
|
- |
|
| |
Tax Fees |
|
|
- |
|
|
|
|
|
|
|
- |
|
| |
All Other Fees |
|
|
- |
|
|
|
|
|
|
|
- |
|
Audit fees include amounts related to the audit of the registrant’s annual financial statements and
services normally provided by the accountant in connection with statutory and regulatory filings. Audit-related fees include amounts reasonably related to the performance of the audit of the registrant’s financial statements and specifically
include the issuance of a report on internal controls and, if applicable, agreed-upon procedures related to fund acquisitions. Tax fees include amounts related to services for tax compliance, tax planning, and tax advice. The nature of these
services specifically includes the review of distribution calculations and the preparation of Federal, state, and excise tax returns. All other fees include the registrant’s pro-rata share of amounts for
agreed-upon procedures in conjunction with service contract approvals by the registrant’s Board of Directors/Trustees.
(e)(1) The registrant’s audit committee has adopted a policy whereby audit and non-audit
services performed by the registrant’s principal accountant for the registrant, its investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the
registrant require pre-approval in advance at regularly scheduled audit committee meetings. If such a service is required between regularly scheduled audit committee meetings,
pre-approval may be authorized by one audit committee member with ratification at the next scheduled audit committee meeting. Waiver of pre-approval for audit or non-audit services requiring fees of a de minimis amount is not permitted.
(2) No services
included in (b) – (d) above were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Less than 50 percent of the hours expended on the principal accountant’s
engagement to audit the registrant’s financial statements for the most recent fiscal year were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees.
(g) The aggregate fees billed for the most recent fiscal year and the preceding fiscal year by the registrant’s principal
accountant for non-audit services rendered to the registrant, its investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing
services to the registrant were $1,180,000 and $1,454,000, respectively.
(h) All non-audit
services rendered in (g) above were pre-approved by the registrant’s audit committee. Accordingly, these services were considered by the registrant’s audit committee in maintaining the principal
accountant’s independence.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
(a) Not applicable. The complete schedule of investments is included in Item 1 of this Form N-CSR.
(b) Not applicable.
Item 7. Disclosure of Proxy
Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity
Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. 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 11. 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 12. Disclosure of Securities Lending Activities for
Closed-End Management Investment Companies.
Not applicable.
Item 13. 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 Tax-Exempt Money Fund, 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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April 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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April 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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April 18, 2024 |
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