-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JXE/edl0RMZsgMtEAi5dZcEWFIaFUSSl3ShMqfhV30mFqvuBkBj7JE6TBDCSZ1Rl LQ++Xa+7XkBgd0ifCj0C7A== 0000928816-08-001328.txt : 20081028 0000928816-08-001328.hdr.sgml : 20081028 20081028150819 ACCESSION NUMBER: 0000928816-08-001328 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20080831 FILED AS OF DATE: 20081028 DATE AS OF CHANGE: 20081028 EFFECTIVENESS DATE: 20081028 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PUTNAM MASSACHUSETTS TAX EXEMPT INCOME FUND/MA/ CENTRAL INDEX KEY: 0000792288 IRS NUMBER: 046626127 STATE OF INCORPORATION: MA FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-04518 FILM NUMBER: 081144596 BUSINESS ADDRESS: STREET 1: ONE POST OFFICE SQ CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 6172921000 MAIL ADDRESS: STREET 1: ONE POST OFFICE SQUARE CITY: BOSTON STATE: MA ZIP: 02109 FORMER COMPANY: FORMER CONFORMED NAME: PUTNAM MASSACHUSETTS TAX EXEMPT INCOME FUND II DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: PUTNAM MASSACHUSETTS TAX EXEMPT INCOME FUND /MA/ DATE OF NAME CHANGE: 19920609 0000792288 S000006210 PUTNAM MASSACHUSETTS TAX EXEMPT INCOME FUND C000017118 Class C Shares C000017119 Class M Shares C000017120 Class A Shares PXMAX C000017121 Class B Shares PMABX C000060571 CLASS Y N-Q 1 a_mataxexempt.htm PUTNAM MASSACHUSETTS TAX EXEMPT INCOME FUND a_mataxexempt.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT 
INVESTMENT COMPANY
 
Investment Company Act file number: (811- 04518) 
 
Exact name of registrant as specified in charter: Putnam Massachusetts Tax Exempt Income Fund 
      
Address of principal executive offices: One Post Office Square, Boston, Massachusetts 02109 
 
Name and address of agent for service:  Beth S. Mazor, Vice President 
  One Post Office Square 
  Boston, Massachusetts 02109 
 
Copy to:  John W. Gerstmayr, Esq. 
  Ropes & Gray LLP 
  One International Place 
  Boston, Massachusetts 02110 
 
Registrant’s telephone number, including area code:  (617) 292-1000 
 
Date of fiscal year end: May 31, 2009     
 
Date of reporting period: August 31, 2008     

Item 1. Schedule of Investments:


Putnam Massachusetts Tax Exempt Income Fund
The fund's portfolio
8/31/08 (Unaudited)

Key to abbreviations
AGO -- Assured Guaranty, Ltd.
AMBAC -- AMBAC Indemnity Corporation
Cmnwlth. Of PR Gtd. -- Commonwealth of Puerto Rico Guaranteed
FGIC -- Financial Guaranty Insurance Company
FHLMC Coll. -- Federal Home Loan Mortgage Corporation Collateralized
FNMA Coll. -- Federal National Mortgage Association Collateralized
FRB -- Floating Rate Bonds
FRN -- Floating Rate Notes
FSA -- Financial Security Assurance
GNMA Coll. -- Government National Mortgage Association Collateralized
G.O. Bonds -- General Obligation Bonds
MBIA -- MBIA Insurance Company
U.S. Govt. Coll. -- U.S. Government Collateralized
VRDN -- Variable Rate Demand Notes
XLCA -- XL Capital Assurance

MUNICIPAL BONDS AND NOTES (98.9%)(a)       
    Principal   
  Rating(RAT)  amount  Value 

Guam (0.7%)       
Territory of GU, Econ. Dev. & Comm. Auth. Rev. Bonds       
(Tobacco Settlement)       
5 5/8s, 6/1/47  BBB+/F  $500,000  $442,740 
5 1/4s, 6/1/32  BBB+/F  1,650,000  1,479,555 
      1,922,295 

 
Massachusetts (90.4%)       
Boston, Indl. Dev. Fin. Auth. Rev. Bonds (Springhouse,       
Inc.), 6s, 7/1/28  BB-/P  2,150,000  2,021,817 
Boston, Indl. Dev. Fin. Auth. Swr. Fac. Rev. Bonds       
(Harbor Elec. Energy Co.), 7 3/8s, 5/15/15 (SEG)  A+/P  4,165,000  4,173,663 
Boston, Wtr. & Swr. Comm. Rev. Bonds, Ser. A, 5 3/4s,       
11/1/13 (SEG)  A+/P  7,435,000  7,966,826 
Framingham, Hsg. Auth. Rev. Bonds (Beaver Terrace),       
Ser. A, GNMA Coll., 6.35s, 2/20/32  AAA  2,100,000  2,220,036 
Holden, G.O. Bonds (Multi-Purpose), FGIC, U.S. Govt.       
Coll., 5 1/2s, 3/1/20 (Prerefunded)  AAA/P  5,185,000  5,505,485 
Lowell, G.O. Bonds, Ser. A, XLCA, 5s, 9/15/22  Aa3  1,750,000  1,800,085 
MA Bay Trans. Auth. Sales Tax Rev. Bonds, Ser. C,       
5 1/2s, 7/1/16  AA/P  5,000,000  5,704,800 
MA State Hsg. Fin. Agcy. FRB (Single Fam. Hsg.), Ser.       
126, 4.7s, 6/1/38  Aa2  2,000,000  1,608,400 
MA State Rev. Bonds (Single Fam.), Ser. 134, 5.45s,       
12/1/28  Aa2  3,190,000  3,089,802 
MA State VRDN (Central Artery), Ser. B, 2.55s, 12/1/30  VMIG1  2,100,000  2,100,000 
MA State College Bldg. Auth. Rev. Bonds       
Ser. B, MBIA, 7s, 5/1/16  Aa2  1,340,000  1,636,475 
Ser. B, XLCA, 5 1/2s, 5/1/28  A1  4,000,000  4,391,120 
Ser. A, AGO, 5s, 5/1/28  Aaa  2,270,000  2,316,944 
MA State Dev. Fin. Agcy. Rev. Bonds       
(Lasell College), 6 3/4s, 7/1/31  BB+/P  85,000  85,854 
(Lasell College), 6 3/4s, 7/1/31 (Prerefunded)  BB+/P  1,305,000  1,480,027 
(Lasell Village), Ser. A, 6 3/8s, 12/1/25 (Prerefunded)  AAA/P  1,210,000  1,247,571 
(MA Biomedical Research), Ser. C, 6 1/8s, 8/1/12  Aa3  1,950,000  2,068,950 
(MA Biomedical Research), Ser. C, 5 7/8s, 8/1/10  Aa3  1,830,000  1,933,798 
(WGBH Edl. Foundation), Ser. A, AMBAC, 5 3/4s, 1/1/42  A/P  5,000,000  5,616,300 
(Linden Ponds, Inc.), Ser. A, 5 3/4s, 11/15/35  BB/P  600,000  521,652 
(Boston Biomedical Research), 5 3/4s, 2/1/29  Baa3  1,750,000  1,665,230 
(Hampshire College), 5.7s, 10/1/34  Baa2  1,315,000  1,280,139 
(Hampshire College), 5 5/8s, 10/1/24  Baa2  1,000,000  1,008,390 
(New England Conservatory of Music), 5 1/4s, 7/1/38  Baa1  3,000,000  2,886,180 
(Simmons College), Ser. H, XLCA, 5 1/4s, 10/1/33  A3  1,000,000  986,210 
(Wheelock College), Ser. C, 5 1/4s, 10/1/29  BBB  1,100,000  1,031,008 
(Middlesex School), 5 1/8s, 9/1/23  A1  1,000,000  1,030,360 
(MA College Pharmacy Allied), Ser. E, AGO, 5s, 7/1/31  Aaa  2,000,000  2,009,780 
(Mount Holyoke College), 5s, 7/1/28  Aa3  3,000,000  3,086,640 
(Holy Cross College), Ser. B, 5s, 9/1/25  Aa3  1,500,000  1,574,595 
(First Mtge. - Orchard Cove), 5s, 10/1/19  BB-  550,000  504,268 
(First Mtge. - Orchard Cove), 5s, 10/1/18  BB-  515,000  478,667 
(WGBH Edl. Foundation), Ser. B, AGO, zero %, 1/1/29  Aaa  2,000,000  696,200 
(WGBH Edl. Foundation), Ser. B, AGO, zero %, 1/1/28  Aaa  2,000,000  741,620 
MA State Dev. Fin. Agcy. VRDN (Boston U.), Ser. U-6A,       
2.55s, 10/1/42  VMIG1  1,500,000  1,500,000 
MA State Dev. Fin. Agcy. Higher Ed. Rev. Bonds       
(Emerson College), Ser. A       
5s, 1/1/19  A-  1,200,000  1,216,236 
5s, 1/1/18  A-  580,000  590,637 
MA State Edl. Fin. Auth. Rev. Bonds, Ser. E, AMBAC,       
5s, 1/1/13  AAA/P  3,625,000  3,639,174 
MA State Hlth. & Edl. Fac. Auth. FRN, MBIA, 6.933s,       
7/1/18  AA  9,000,000  9,046,980 
MA State Hlth. & Edl. Fac. Auth. Rev. Bonds       
(Winchester Hosp.), Ser. E, 6 3/4s, 7/1/30       
(Prerefunded)  BBB+/F  2,890,000  3,123,570 
(Quincy Med. Ctr.), Ser. A, 6 1/2s, 1/15/38  BB-/P  1,000,000  965,660 
(UMass Memorial), Ser. C, 6 1/2s, 7/1/21  Baa2  3,125,000  3,198,063 
(Berkshire Hlth. Syst.), Ser. E, 6 1/4s, 10/1/31  BBB+  1,300,000  1,311,141 
(Harvard U.), Ser. N, 6 1/4s, 4/1/20  Aaa  5,000,000  6,054,750 
(Learning Ctr. for Deaf Children), Ser. C, 6 1/8s,       


7/1/29  Ba2  1,000,000  949,780 
(Hlth. Care Syst.-Covenant Hlth.), 6s, 7/1/31  A/F  2,370,000  2,438,209 
(Partners Hlth. Care Syst.), Ser. C, 6s, 7/1/15  Aa2  2,100,000  2,251,326 
(Partners Hlth. Care Syst.), Ser. C, 6s, 7/1/14  Aa2  1,460,000  1,572,566 
(Partners Hlth. Care Syst.), Ser. C, 5 3/4s, 7/1/32  Aa2  150,000  156,275 
(Partners Hlth. Care Syst.), Ser. C, 5 3/4s, 7/1/32       
(Prerefunded)  AAA  3,850,000  4,231,651 
(Baystate Med. Ctr.), Ser. F, 5.7s, 7/1/27  A1  2,160,000  2,181,190 
(Caritas Christian Oblig. Group), Ser. A, 5 5/8s,       
7/1/20  BBB  1,995,000  1,978,701 
(Milton Hosp.), Ser. C, 5 1/2s, 7/1/16  BBB-  800,000  803,040 
(Milton Hosp.), Ser. C, 5 1/2s, 7/1/11  BBB-  1,265,000  1,291,388 
(Cape Cod Hlth. Care), Ser. B, 5.45s, 11/15/23  BBB  2,600,000  2,544,594 
(Jordan Hosp.), Ser. D, 5 3/8s, 10/1/28  BB-  3,000,000  2,561,610 
(Care Group), Ser. B-1, MBIA, 5 3/8s, 2/1/27  AAA  1,030,000  1,053,371 
(Care Group), Ser. B-2, MBIA, 5 3/8s, 2/1/27  AAA  1,000,000  1,022,690 
(Boston College), Ser. K, 5 3/8s, 6/1/14  Aa3  4,250,000  4,700,585 
(Dana-Farber Cancer Inst.), Ser. K, 5 1/4s, 12/1/27  A1  3,000,000  3,037,710 
(Partners Hlth. Care Syst.), Ser. B, 5 1/4s, 7/1/11  Aa2  3,000,000  3,084,000 
(MA Inst. of Tech.), Ser. I-1, 5.2s, 1/1/28  Aaa  10,000,000  11,033,500 
(Fisher College), Ser. A, 5 1/8s, 4/1/37  BBB-  755,000  647,820 
(MA Inst. of Tech.), Ser. A, 5s, 7/1/38  Aaa  500,000  511,425 
(Milford Regl. Med.), Ser. E, 5s, 7/15/37  Baa3  850,000  700,902 
(Sterling & Francine Clark), Ser. A, 5s, 7/1/36  Aa2  3,000,000  3,026,850 
(Simmons College), Ser. F, FGIC, 5s, 10/1/33       
(Prerefunded)  A3  5,245,000  5,745,635 
(Milford Regl. Med.), Ser. E, 5s, 7/15/32  Baa3  750,000  632,025 
(Northeastern U.), Ser. R, 5s, 10/1/26  A2  1,165,000  1,171,373 
(Worcester City Campus Corp.), Ser. E, FGIC, 5s,       
10/1/26  A+  2,000,000  2,053,380 
(Fisher College), Ser. A, 5s, 4/1/22  BBB-  1,110,000  1,024,352 
(Wellesley College), 5s, 7/1/17  Aaa  1,000,000  1,060,090 
(Worcester City Campus Corp.), Ser. F, FGIC, 4 1/2s,       
10/1/25  A+  2,735,000  2,636,923 
MA State Hlth. & Edl. Fac. Auth. VRDN       
(Northeastern U.), Ser. U, 2.1s, 10/1/22  VMIG1  3,600,000  3,600,000 
(Harvard U.), Ser. R, 1.9s, 11/1/49  VMIG1  3,300,000  3,300,000 
MA State Hsg. Fin. Agcy. Rev. Bonds (Single Fam.       
Mtge.), Ser. 86, 5.1s, 12/1/21  Aa2  135,000  131,205 
MA State Indl. Fin. Agcy. Rev. Bonds       
(1st Mtge. Stone Institution & Newton), 7.9s, 1/1/24  BB-/P  1,500,000  1,502,805 
(American Hingham, Wtr. Treatment), 6 3/4s, 12/1/25  BBB+/P  4,520,000  4,534,102 
(1st Mtge. Berkshire Retirement), Ser. A, 6 5/8s,       
7/1/16  BBB-  3,850,000  3,863,437 
MA State Port Auth. Rev. Bonds       
Ser. A, MBIA, 5s, 7/1/33  AA  2,400,000  2,412,096 
Ser. C, FSA, 5s, 7/1/27  Aaa  5,000,000  4,770,750 
Ser. A, AMBAC, 5s, 7/1/26  AA  3,000,000  3,090,690 
MA State Port Auth. Special Fac. Rev. Bonds (BOSFUEL),       
FGIC, 5s, 7/1/27  A2  2,500,000  2,292,925 
MA State School Bldg. Auth. Dedicated Sales Tax Rev.       
Bonds, Ser. A, FSA       
5s, 8/15/26  Aaa  6,000,000  6,202,440 
5s, 8/15/23  Aaa  5,000,000  5,220,350 
5s, 8/15/20  Aaa  5,000,000  5,294,350 
5s, 8/15/17  Aaa  5,000,000  5,436,400 
MA State Special Oblig. Dedicated Tax Rev. Bonds,       
FGIC, FHLMC Coll., FNMA Coll.       
5 1/4s, 1/1/22 (Prerefunded)  A2  2,000,000  2,199,180 
5 1/4s, 1/1/20 (Prerefunded)  A2  5,000,000  5,497,950 
MA State Wtr. Poll. Abatement Trust Rev. Bonds       
Ser. 5, 5 3/8s, 8/1/27  Aaa  4,490,000  4,584,425 
Ser. 13, 5s, 8/1/26  Aaa  1,000,000  1,045,290 
Ser. 12, 5s, 8/1/20  Aaa  2,645,000  2,828,272 
MA State Wtr. Resource Auth. Rev. Bonds, Ser. A       
6 1/2s, 7/15/19 (Prerefunded)  A+/P  5,500,000  6,504,465 
MBIA, 5s, 8/1/29  Aa2  4,000,000  4,067,320 
MBIA, 5s, 8/1/29  Aa2  3,225,000  3,301,691 
MBIA, 5s, 8/1/27  Aa2  1,500,000  1,547,820 
Milford, G.O. Bonds, FSA, 5 1/8s, 12/15/24  Aaa  2,475,000  2,612,288 
Norwell, G.O. Bonds, AMBAC, 5s, 2/15/25  AA+  1,000,000  1,019,900 
U. MA Bldg. Auth. Rev. Bonds, Ser. 04-1, AMBAC       
5 3/8s, 11/1/16  AA  210,000  231,145 
5 3/8s, 11/1/16 (Prerefunded)  AA  790,000  892,384 
Westford, G.O. Bonds, FGIC, 5 1/4s, 4/1/20       
(Prerefunded)  AAA/P  1,000,000  1,061,590 
      262,263,334 

 
Puerto Rico (7.8%)       
Children's Trust Fund Tobacco Settlement Rev. Bonds,       
5 3/8s, 5/15/33  BBB  2,240,000  1,998,259 
Cmnwlth. of PR, G.O. Bonds       
FGIC, 5 1/2s, 7/1/14  Baa3  500,000  528,485 
(Pub. Impt.), Ser. A, 5s, 7/1/13  Baa3  1,395,000  1,434,004 
Cmnwlth. of PR, Aqueduct & Swr. Auth. Rev. Bonds, Ser.       
A       
6s, 7/1/44  Baa3  4,250,000  4,412,520 
AGO, 5s, 7/1/28  Aaa  1,250,000  1,273,238 
Cmnwlth. of PR, Elec. Pwr. Auth. Rev. Bonds       
Ser. WW, 5 1/4s, 7/1/25  A3  1,350,000  1,363,311 
Ser. SS, MBIA, 5s, 7/1/15  AA  1,610,000  1,686,620 
Cmnwlth. of PR, Govt. Dev. Bank Rev. Bonds, Ser. B,       
5s, 12/1/15  BBB  500,000  512,165 
Cmnwlth. of PR, Hwy. & Trans. Auth. Rev. Bonds, Ser.       
I, FGIC, 5s, 7/1/25  BBB+  3,000,000  2,926,470 
Cmnwlth. of PR, Pub. Bldg. Auth. Rev. Bonds (Govt.       
Fac.)       


Ser. M-2, 5 3/4s, 7/1/34  Baa3  1,500,000  1,550,160 
Ser. N, Cmnwlth. of PR Gtd., 5 1/2s, 7/1/21  Baa3  3,250,000  3,320,363 
Ser. I, Cmnwlth. of PR Gtd., 5 1/4s, 7/1/29  Baa3  685,000  675,554 
Ser. I, Cmnwlth. of PR Gtd., 5 1/4s, 7/1/29       
(Prerefunded)  Baa3  815,000  894,031 
      22,575,180 
 
 
TOTAL INVESTMENTS       

Total investments (cost $280,341,407)(b)      $286,760,809 


FUTURES CONTRACTS OUTSTANDING at 8/31/08 (Unaudited)       
  Number of    Expiration  Unrealized 
  contracts  Value  date  depreciation 

U.S. Treasury Note 10 yr (Short)  80  $9,240,000  Dec-08  $(58,883) 


TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 8/31/08 (Unaudited)     
 
    Fixed payments  Total return   
Swap counterparty /  Termination  received (paid) by  received by  Unrealized 
Notional amount  date  fund per annum  or paid by fund  appreciation 

 
Citibank, N.A.         
$ 1,743,333  9/22/08  -  4.30% minus  $24,445 
      Municipal Market   
      Data Index AAA   
      municipal yields   
      15 Year rate   

 
1,743,333  9/19/08  -  4.30% minus  23,838 
      Municipal Market   
      Data Index AAA   
      municipal yields   
      15 Year rate   

 
1,743,333  9/17/08  -  4.30% minus  24,034 
      Municipal Market   
      Data Index AAA   
      municipal yields   
      15 Year rate   

 
Total        $72,317 


NOTES

(a) Percentages indicated are based on net assets of $290,021,702.

(RAT) The Moody's, Standard & Poor's or Fitch ratings indicated are believed to be the most recent ratings available at August 31, 2008 for the securities listed. Ratings are generally ascribed to securities at the time of issuance. While the agencies may from time to time revise such ratings, they undertake no obligation to do so, and the ratings do not necessarily represent what the agencies would ascribe to these securities at August 31, 2008. Securities rated by Putnam are indicated by "/P." Securities rated by Fitch are indicated by "/F." The rating of an insured security represents what is believed to be the most recent rating of the insurer's claims-paying ability available at August 31, 2008 and does not reflect any subsequent changes. Security ratings are defined in the Statement of Additional Information.

(b) The aggregate identified cost on a tax basis is $280,341,407, resulting in gross unrealized appreciation and depreciation of $9,671,293 and $3,251,891, respectively, or net unrealized appreciation of $6,419,402.

(SEG) A portion of these securities were pledged and segregated with the custodian to cover margin requirements for futures contracts at August 31, 2008.

The rates shown on VRDN, FRB and FRN are the current interest rates at August 31, 2008.

The dates shown on debt obligations are the original maturity dates.

The fund had the following sector concentrations greater than 10% at August 31, 2008 (as a percentage of net assets):

Education  24.4% 
Health care  20.5 
Utilities  16.0 

The fund had the following insurance concentrations greater than 10% at August 31, 2008 (as a percentage of net assets):

FGIC  10.5% 
FSA  10.2 

Security valuation Tax-exempt bonds and notes are generally valued on the basis of valuations provided by an independent pricing service approved by the Trustees. Such services use information with respect to transactions in bonds, quotations from bond dealers, market transactions in comparable securities and various relationships between securities in determining value. Certain investments and derivatives are also valued at fair value following procedures approved by the Trustees. Such valuations and procedures are reviewed periodically by the Trustees. The fair value of securities is generally determined as the amount that the fund could reasonably expect to realize from an orderly disposition of such securities over a reasonable period of time. By its nature, a fair value price is a good faith estimate of the value of a security at a given point in time and does not reflect an actual market price, which may be different by a material amount.

Futures and options contracts The fund may use futures and options contracts to hedge against changes in the values of securities the fund owns or expects to purchase, or for other investment purposes. The fund may also write options on swaps or securities it owns or in which it may invest to increase its current returns.

The potential risk to the fund is that the change in value of futures and options contracts may not correspond to the change in value of the hedged instruments. In addition, losses may arise from changes in the value of the underlying instruments, if there is an illiquid secondary market for the contracts, or if the counterparty to the contract is unable to perform. Risks may exceed amounts recognized on the statement of assets and liabilities. When the contract is closed, the fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Realized gains and losses on purchased options are included in realized gains and losses on investment securities. If a written call option is exercised, the premium originally received is recorded as an addition to sales proceeds. If a written put option is exercised, the premium originally received is recorded as a reduction to the cost of investments.

Futures contracts are valued at the quoted daily settlement prices established by the exchange on which they trade. The fund and the broker agree to exchange an amount of cash equal to the daily fluctuation in the value of the futures contract. Such receipts or payments are known as “variation margin.” Exchange traded options are valued at the last sale price or, if no sales are reported, the last bid price for purchased options and the last ask price for written options. Options traded over-the-counter are valued using prices supplied by dealers.

Total return swap contracts The fund may enter into total return swap contracts, which are arrangements to exchange a market-linked return for a periodic payment, both based on a notional principal amount. To the extent that the total return of the security, index or other financial measure underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the fund will receive a payment from or make a payment to the counterparty. Total return swap contracts are marked-to-market daily based upon quotations from market makers and the change, if any, is recorded as an unrealized gain or loss. Payments received or made are recorded as a realized gain or loss. Certain total return swap contracts may include extended effective dates. Payments related to these swap contracts is accrued based on the terms of the contract. The fund could be exposed to credit or market risk due to unfavorable changes in th e fluctuation of interest rates or in the price of the underlying security or index, the possibility that there is no liquid market for these agreements or that the counterparty may default on its obligation to perform.

In September 2006, the FASB issued Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157). SFAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. While the adoption of SFAS 157 does not have a material effect on the fund’s net asset value, it does require additional disclosures about fair value measurements. The Standard establishes a three-level hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of the fund’s investments. The three levels are defined as follows:

Level 1 – Valuations based on quoted prices for identical securities in active markets.

Level 2 – Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3 – Valuations based on inputs that are unobservable and significant to the fair value measurement.

The following is a summary of the inputs used to value the fund’s net assets as of August 31, 2008:

Valuation Inputs  Investments in Securities  Other Financial Instruments* 

Level 1  $  -  $  (58,883) 

Level 2  $  286,760,809  $  72,317 

Level 3  $  -  $  - 

Total  $  286,760,809  $  13,434 


* Other financial instruments include futures, written options, TBA sale commitments, swaps and forward contracts which are valued at the unrealized appreciation/(depreciation) on the instrument.

For additional information regarding the fund please see the fund's most recent annual or semiannual shareholder report filed on the Securities and Exchange Commission's Web site, www.sec.gov, or visit Putnam's Individual Investor Web site at www.putnaminvestments.com


Item 2. Controls and Procedures:

(a) The registrant's principal executive officer and principal financial officer have concluded, based on their evaluation of the effectiveness of the design and operation of the registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the design and operation of such procedures are generally effective to provide reasonable assurance that information required to be disclosed by the registrant in this report is recorded, processed, summarized and reported within the time periods specified in the Commission's rules and forms.

(b) Changes in internal control over financial reporting: Not applicable

Item 3. Exhibits:

Separate certifications for the principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are filed herewith.

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.

Putnam Massachusetts Tax Exempt Income Fund

By (Signature and Title):

/s/ Janet C. Smith
Janet C. Smith
Principal Accounting Officer
Date: October 28, 2008

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.

By (Signature and Title):

/s/ Charles E. Porter
Charles E. Porter
Principal Executive Officer
Date: October 28, 2008

By (Signature and Title):

/s/ Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer
Date: October 28, 2008


EX-99.CERT 2 b_cert.htm EX-99.CERT b_cert.htm

Certifications

I, Charles E. Porter, the Principal Executive Officer of the funds listed on Attachment A, certify that:

1. I have reviewed each report on Form N-Q of the funds listed on Attachment A:

2. Based on my knowledge, each report does not contain any untrue statements of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by each report;

3. Based on my knowledge, the schedules of investments included in each report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrants and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which each report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed to each registrant’s auditors and the audit committee of each registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect each registrant’s ability to record, process, summarize, and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in each registrant’s internal control over financial reporting.

/s/ Charles E. Porter
_____________________________
Date: October 28, 2008
Charles E. Porter
Principal Executive Officer


Certifications

I, Steven D. Krichmar, the Principal Financial Officer of the funds listed on Attachment A, certify that:

1. I have reviewed each report on Form N-Q of the funds listed on Attachment A:

2. Based on my knowledge, each report does not contain any untrue statements of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by each report;

3. Based on my knowledge, the schedules of investments included in each report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrants and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which each report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed to each registrant’s auditors and the audit committee of each registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect each registrant’s ability to record, process, summarize, and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in each registrant’s internal control over financial reporting.

/s/ Steven D. Krichmar
_______________________________
Date: October 28, 2008
Steven D. Krichmar
Principal Financial Officer


  Attachment A 
  NQ 
  Period (s) ended August 31, 2008 
  
433  Putnam Capital Appreciation Fund 
060  Putnam High Yield Advantage Fund 
949  Putnam Classic Equity Fund 
012  Putnam Equity Income Fund 
030  Putnam New York Tax Exempt Income Fund 
846  Putnam Michigan Tax Exempt Income Fund 
019  Putnam New Jersey Tax Exempt Income Fund 
848  Putnam Ohio Tax Exempt Income Fund 
047  Putnam Pennsylvania Tax Exempt Income Fund 
847  Putnam Minnesota Tax Exempt Income Fund 
845  Putnam Massachusetts Tax Exempt Income Fund 
855  Putnam Arizona Tax Exempt Income Fund 


-----END PRIVACY-ENHANCED MESSAGE-----