Maryland Short-Term Tax-Free Bond Fund_MDS_F90-051
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-04521
T. Rowe Price State Tax-Free Funds, Inc.
(Exact name of registrant as specified
in charter)
100 East Pratt Street, Baltimore, MD 21202
(Address of principal executive
offices)
David Oestreicher
100 East Pratt Street, Baltimore, MD 21202
(Name and address of agent for service)
Registrant’s telephone number, including area code: (410) 345-2000
Date of fiscal year end: February 29
Date of reporting period:
August 31, 2023
Item 1. Reports to Shareholders
(a) Report pursuant to Rule 30e-1
Market
Commentary
Portfolio
Summary
Fund
Expense
Example
Financial
Highlights
Portfolio
of
Investments
Financial
Statements
and
Notes
Additional
Fund
Information
Maryland
Tax-Free
Funds
For
more
insights
from
T.
Rowe
Price
investment
professionals,
go
to
troweprice.com
.
T.
ROWE
PRICE
Maryland
Tax-Free
Funds
Log
in
to
your
account
at
troweprice.com
for
more
information.
*
Certain
mutual
fund
accounts
that
are
assessed
an
annual
account
service
fee
can
also
save
money
by
switching
to
e-delivery.
T.
ROWE
PRICE
Maryland
Tax-Free
Funds
Market
Commentary
Dear
Shareholder
Most
major
global
stock
and
bond
indexes
produced
positive
returns
during
the
first
half
of
your
fund’s
fiscal
year,
the
six-month
period
ended
August 31,
2023.
Despite
turmoil
in
the
banking
sector
and
a
protracted
debt
ceiling
standoff,
markets
in
the
U.S.
were
resilient
as
economic
growth
remained
positive
and
corporate
earnings
results
came
in
stronger
than
expected.
Technology
companies
benefited
from
investor
enthusiasm
for
artificial
intelligence
developments
and
helped
drive
the
momentum
in
the
equity
market.
Growth
stocks
outperformed
value
shares,
and
developed
market
stocks
generally
outpaced
their
emerging
market
counterparts.
Currency
movements
were
mixed
over
the
period,
although
a
weaker
dollar
versus
major
European
currencies
was
beneficial
for
U.S.
investors
in
European
securities.
Within
the
S&P
500
Index,
the
communication
services,
information
technology,
and
consumer
discretionary
sectors
were
all
lifted
by
the
rally
in
tech-related
companies
and
recorded
significant
gains.
The
financials
sector
partly
recovered
from
the
failure
of
three
large
regional
banks
during
the
period
but
still
finished
in
negative
territory.
In
terms
of
economic
news,
inflation
remained
a
primary
concern
for
both
investors
and
policymakers.
Price
increases
moderated
during
the
period
but
remained
well
above
the
Federal
Reserve’s
2%
target.
In
response,
the
Fed
continued
to
raise
its
short-term
lending
benchmark
rate,
lifting
it
to
a
target
range
of
5.25%
to
5.50%
by
period-end,
the
highest
level
since
March
2001.
In
the
fixed
income
market,
U.S.
Treasury
yields
increased
as
the
Fed
tightened
monetary
policy
and
investors
priced
in
the
possibility
that
the
central
bank
may
have
to
keep
rates
higher
for
longer
than
previously
anticipated.
In
addition,
Treasuries
were
pressured
by
Fitch
Ratings’
decision
to
downgrade
the
credit
rating
of
U.S.
government
debt
from
the
highest
level,
AAA,
to
AA+
along
with
expectations
for
higher
levels
of
borrowing
by
the
Treasury
Department.
The
yield
on
the
benchmark
10-year
note
climbed
to
4.36%
in
mid-August,
its
highest
intraday
level
since
late
2007,
before
falling
back
to
4.09%
by
month-end.
Despite
rising
yields,
returns
were
positive
across
most
fixed
income
sectors
as
investors
benefited
from
the
higher
coupons
that
have
become
available
over
the
past
year
as
well
as
increasing
hopes
that
the
economy
might
be
able
to
avoid
a
recession.
Tax-exempt
municipal
bonds
were
supported
by
limited
issuance
in
the
sector
as
well
as
generally
strong
balance
sheets
at
the
state
and
local
level.
T.
ROWE
PRICE
Maryland
Tax-Free
Funds
Global
economies
and
markets
have
shown
surprising
resilience
in
2023,
but
considerable
uncertainty
remains
as
the
impact
of
the
Fed’s
rate
hikes
has
yet
to
be
fully
felt
in
the
economy.
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
identify
securities
that
can
add
value
to
your
portfolio
over
the
long
term.
You
may
notice
that
this
report
no
longer
contains
the
commentary
on
your
fund’s
performance
and
positioning
that
we
previously
included
in
the
semiannual
shareholder
letters.
The
Securities
and
Exchange
Commission
(SEC)
adopted
new
rules
in
January
that
will
require
fund
reports
to
transition
to
a
new
format
known
as
a
Tailored
Shareholder
Report.
This
change
will
require
a
much
more
concise
summary
of
performance
rather
than
the
level
of
detail
we
have
provided
historically
while
also
aiming
to
be
more
visually
engaging.
As
we
prepare
to
make
changes
to
the
annual
reports
to
meet
the
new
report
regulatory
requirements
by
mid-2024,
we
felt
the
time
was
right
to
discontinue
the
optional
six-month
semiannual
fund
letter
to
focus
on
the
changes
to
come.
While
semiannual
fund
letters
will
no
longer
be
produced,
you
may
continue
to
access
current
fund
information
as
well
as
insights
and
perspectives
from
our
investment
team
on
our
personal
investing
website.
Thank
you
for
your
continued
confidence
in
T.
Rowe
Price.
Sincerely,
Robert
Sharps
CEO
and
President
T.
ROWE
PRICE
Maryland
Tax-Free
Funds
Portfolio
Summary
PORTFOLIO
DIVERSIFICATION
Maryland
Tax-Free
Money
Fund
Percent
of
Net
Assets
2/28/23
8/31/23
Housing
27.5%
31.2%
General
Obligation—Local
22.3
24.2
Health
Care
18.7
19.9
Education
8.7
6.4
Special
Tax
2.7
4.9
Leasing
1.8
4.6
Water
and
Sewer
8.4
3.7
General
Obligation—State
4.9
2.4
Other
Assets
5.0
2.7
Total
100.0%
100.0%
Historical
weightings
reflect
current
industry/sector
classifications.
T.
ROWE
PRICE
Maryland
Tax-Free
Funds
CREDIT
QUALITY
DIVERSIFICATION
Maryland
Short-Term
Tax-Free
Bond
Fund
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.
T.
ROWE
PRICE
Maryland
Tax-Free
Funds
Note:
Copyright
©
2023
Fitch
Ratings,
Inc.,
Fitch
Ratings
Ltd.
and
its
subsidiaries.
Note:
©
2023,
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.
CREDIT
QUALITY
DIVERSIFICATION
Maryland
Tax-Free
Bond
Fund
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.
T.
ROWE
PRICE
Maryland
Tax-Free
Funds
Note:
Copyright
©
2023,
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
results
obtained
from
the
use
of
such
Content.
In
no
event
shall
Content
Providers
be
liable
for
any
damages,
costs,
expenses,
legal
fees,
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.
T.
ROWE
PRICE
Maryland
Tax-Free
Funds
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
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.
Actual
Expenses
The
first
line
of
the
following
table
(Actual)
provides
information
about
actual
account
values
and
expenses
based
on
the
fund’s
actual
returns.
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.
T.
ROWE
PRICE
Maryland
Tax-Free
Funds
MARYLAND
TAX-FREE
MONEY
FUND
Beginning
Account
Value
3/1/23
Ending
Account
Value
8/31/23
Expenses
Paid
During
Period*
3/1/23
to
8/31/23
Investor
Class
Actual
$1,000.00
$1,013.60
$2.08
Hypothetical
(assumes
5%
return
before
expenses)
1,000.00
1,023.08
2.08
I
Class
Actual
1,000.00
1,014.50
1.22
Hypothetical
(assumes
5%
return
before
expenses)
1,000.00
1,023.93
1.22
*
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
(184),
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%.
MARYLAND
SHORT-TERM
TAX-FREE
BOND
FUND
Beginning
Account
Value
3/1/23
Ending
Account
Value
8/31/23
Expenses
Paid
During
Period*
3/1/23
to
8/31/23
Investor
Class
Actual
$1,000.00
$1,010.20
$2.68
Hypothetical
(assumes
5%
return
before
expenses)
1,000.00
1,022.47
2.69
I
Class
Actual
1,000.00
1,010.60
2.22
Hypothetical
(assumes
5%
return
before
expenses)
1,000.00
1,022.92
2.24
*
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
(184),
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%,
and
the
2
I Class
was
0.44%.
FUND
EXPENSE
EXAMPLE
(CONTINUED)
T.
ROWE
PRICE
Maryland
Tax-Free
Funds
MARYLAND
TAX-FREE
BOND
FUND
Beginning
Account
Value
3/1/23
Ending
Account
Value
8/31/23
Expenses
Paid
During
Period*
3/1/23
to
8/31/23
Investor
Class
Actual
$1,000.00
$1,012.60
$2.48
Hypothetical
(assumes
5%
return
before
expenses)
1,000.00
1,022.67
2.49
I
Class
Actual
1,000.00
1,013.00
2.13
Hypothetical
(assumes
5%
return
before
expenses)
1,000.00
1,023.03
2.14
*
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
(184),
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
0.49%,
and
the
2
I Class
was
0.42%.
FUND
EXPENSE
EXAMPLE
(CONTINUED)
100
East
Pratt
Street
Baltimore,
MD
21202
T.
Rowe
Price
Investment
Services,
Inc.
Call
1-800-225-5132
to
request
a
prospectus
or
summary
prospectus;
each
includes
investment
objectives,
risks,
fees,
expenses,
and
other
information
that
you
should
read
and
consider
carefully
before
investing.
C12-051
10/23
SemiAnnual
Report
|
Financial
Statements
For
more
insights
from
T.
Rowe
Price
investment
professionals,
go
to
troweprice.com
.
T.
ROWE
PRICE
PRMDX
Maryland
Short-Term
Tax-
Free
Bond
Fund
–
.
TRMUX
Maryland
Short-Term
Tax-
Free
Bond
Fund–
.
I Class
T.
ROWE
PRICE
Maryland
Short-Term
Tax-Free
Bond
Fund
(Unaudited)
For
a
share
outstanding
throughout
each
period
Investor
Class
6
Months
.
Ended
8/31/23
..
Year
..
..
Ended
.
2/28/23
2/28/22
2/28/21
2/29/20
2/28/19
NET
ASSET
VALUE
Beginning
of
period
$
5
.04
$
5
.14
$
5
.22
$
5
.25
$
5
.18
$
5
.16
Investment
activities
Net
investment
income
(1)(2)
0
.04
0
.05
0
.03
0
.06
0
.07
0
.06
Net
realized
and
unrealized
gain/loss
0
.01
(
0
.10
)
(
0
.08
)
(
0
.03
)
0
.07
0
.02
Total
from
investment
activities
0
.05
(
0
.05
)
(
0
.05
)
0
.03
0
.14
0
.08
Distributions
Net
investment
income
(
0
.04
)
(
0
.05
)
(
0
.03
)
(
0
.06
)
(
0
.07
)
(
0
.06
)
NET
ASSET
VALUE
End
of
period
$
5
.05
$
5
.04
$
5
.14
$
5
.22
$
5
.25
$
5
.18
T.
ROWE
PRICE
Maryland
Short-Term
Tax-Free
Bond
Fund
(Unaudited)
For
a
share
outstanding
throughout
each
period
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Investor
Class
6
Months
.
Ended
8/31/23
..
Year
..
..
Ended
.
2/28/23
2/28/22
2/28/21
2/29/20
2/28/19
Ratios/Supplemental
Data
Total
return
(2)(3)
1
.02
%
(
0
.94
)
%
(
0
.93
)
%
0
.51
%
2
.70
%
1
.60
%
Ratios
to
average
net
assets:
(2)
Gross
expenses
before
waivers/
payments
by
Price
Associates
0
.74
%
(4)
0
.74
%
0
.67
%
0
.64
%
0
.64
%
0
.65
%
Net
expenses
after
waivers/payments
by
Price
Associates
0
.53
%
(4)
0
.53
%
0
.53
%
0
.53
%
0
.53
%
0
.54
%
Net
investment
income
1
.62
%
(4)
1
.02
%
0
.61
%
1
.09
%
1
.32
%
1
.19
%
Portfolio
turnover
rate
20
.6
%
53
.0
%
37
.2
%
22
.8
%
30
.3
%
36
.7
%
Net
assets,
end
of
period
(in
thousands)
$64,123
$67,098
$73,668
$122,627
$121,545
$124,394
0
%
0
%
0
%
0
%
0
%
0
%
(1)
Per
share
amounts
calculated
using
average
shares
outstanding
method.
(2)
See
Note
5
for
details
of
expense-related
arrangements
with
Price
Associates.
(3)
Total
return
reflects
the
rate
that
an
investor
would
have
earned
on
an
investment
in
the
fund
during
each
period,
assuming
reinvestment
of
all
distributions,
and
payment
of
no
redemption
or
account
fees,
if
applicable.
Total
return
is
not
annualized
for
periods
less
than
one
year.
(4)
Annualized
T.
ROWE
PRICE
Maryland
Short-Term
Tax-Free
Bond
Fund
(Unaudited)
For
a
share
outstanding
throughout
each
period
I
Class
6
Months
.
Ended
8/31/23
..
Year
..
..
Ended
.
2/28/23
2/28/22
2/28/21
2/29/20
2/28/19
NET
ASSET
VALUE
Beginning
of
period
$
5
.05
$
5
.15
$
5
.23
$
5
.26
$
5
.19
$
5
.17
Investment
activities
Net
investment
income
(1)(2)
0
.04
0
.06
0
.04
0
.06
0
.07
0
.07
Net
realized
and
unrealized
gain/loss
0
.01
(
0
.10
)
(
0
.08
)
(
0
.03
)
0
.07
0
.02
Total
from
investment
activities
0
.05
(
0
.04
)
(
0
.04
)
0
.03
0
.14
0
.09
Distributions
Net
investment
income
(
0
.04
)
(
0
.06
)
(
0
.04
)
(
0
.06
)
(
0
.07
)
(
0
.07
)
NET
ASSET
VALUE
End
of
period
$
5
.06
$
5
.05
$
5
.15
$
5
.23
$
5
.26
$
5
.19
T.
ROWE
PRICE
Maryland
Short-Term
Tax-Free
Bond
Fund
(Unaudited)
For
a
share
outstanding
throughout
each
period
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
I
Class
6
Months
.
Ended
8/31/23
..
Year
..
..
Ended
.
2/28/23
2/28/22
2/28/21
2/29/20
2/28/19
Ratios/Supplemental
Data
Total
return
(2)(3)
1
.06
%
(
0
.84
)
%
(
0
.83
)
%
0
.61
%
2
.79
%
1
.69
%
Ratios
to
average
net
assets:
(2)
Gross
expenses
before
waivers/
payments
by
Price
Associates
0
.59
%
(4)
0
.58
%
0
.56
%
0
.55
%
0
.55
%
0
.55
%
Net
expenses
after
waivers/payments
by
Price
Associates
0
.44
%
(4)
0
.44
%
0
.43
%
0
.44
%
0
.44
%
0
.44
%
Net
investment
income
1
.72
%
(4)
1
.11
%
0
.69
%
1
.18
%
1
.41
%
1
.32
%
Portfolio
turnover
rate
20
.6
%
53
.0
%
37
.2
%
22
.8
%
30
.3
%
36
.7
%
Net
assets,
end
of
period
(in
thousands)
$91,041
$91,688
$93,268
$41,836
$48,092
$45,615
0
%
0
%
0
%
0
%
0
%
0
%
(1)
Per
share
amounts
calculated
using
average
shares
outstanding
method.
(2)
See
Note
5
for
details
of
expense-related
arrangements
with
Price
Associates.
(3)
Total
return
reflects
the
rate
that
an
investor
would
have
earned
on
an
investment
in
the
fund
during
each
period,
assuming
reinvestment
of
all
distributions,
and
payment
of
no
redemption
or
account
fees,
if
applicable.
Total
return
is
not
annualized
for
periods
less
than
one
year.
(4)
Annualized
T.
ROWE
PRICE
Maryland
Short-Term
Tax-Free
Bond
Fund
August
31,
2023
(Unaudited)
Portfolio
of
Investments
‡
Par
$
Value
(Amounts
in
000s)
‡
MUNICIPAL
SECURITIES
98.8%
MARYLAND
95.4%
Anne
Arundel
County
Consolidated
Special
Taxing
Dist.,
Villages
of
Dorchester
&
Farmington
Village,
5.00%,
7/1/24
500
500
Anne
Arundel
County,
Consolidated
General
Improvements,
GO,
5.00%,
10/1/24
610
621
Anne
Arundel
County,
Consolidated
General
Improvements,
GO,
5.00%,
4/1/25
1,000
1,027
Anne
Arundel
County,
Consolidated
General
Improvements,
GO,
5.00%,
4/1/26
1,730
1,811
Anne
Arundel
County,
Consolidated
General
Improvements,
GO,
5.00%,
10/1/26
1,090
1,127
Anne
Arundel
County,
Consolidated
Water
&
Sewer,
GO,
5.00%,
4/1/24
1,860
1,878
Anne
Arundel
County,
Consolidated
Water
&
Sewer,
GO,
5.00%,
10/1/26
1,740
1,840
Baltimore
City,
Convention
Center
Hotel,
5.00%,
9/1/23
1,550
1,550
Baltimore
City,
Harbor
Point,
Series A,
2.75%,
6/1/24
(1)
190
187
Baltimore
City,
Harbor
Point,
Series A,
2.80%,
6/1/25
(1)
125
121
Baltimore
City,
Harbor
Point,
Series A,
2.85%,
6/1/26
(1)
135
129
Baltimore
City,
Harbor
Point,
Series A,
3.05%,
6/1/28
(1)
190
175
Baltimore
County,
Consolidated
Public
Improvement,
GO,
5.00%,
8/1/26
1,635
1,686
Baltimore
County,
Consolidated
Public
Improvement,
Series 2022,
GO,
5.00%,
3/1/27
275
293
Baltimore
County,
Metropolitan
Dist.,
80th
Issue,
GO,
5.00%,
3/1/27
1,000
1,067
Baltimore
County,
Oak
Crest
Village,
5.00%,
1/1/24
200
200
Baltimore
County,
Oak
Crest
Village,
5.00%,
1/1/25
35
35
Baltimore
County,
Oak
Crest
Village,
5.00%,
1/1/29
395
403
Baltimore
County,
Riderwood
Village,
4.00%,
1/1/24
1,520
1,518
Charles
County,
Consolidated
Public
Improvement,
GO,
4.00%,
10/1/25
500
508
Charles
County,
Consolidated
Public
Improvement,
GO,
5.00%,
10/1/26
1,030
1,089
Frederick
County,
Series A,
5.00%,
7/1/24
1,000
1,011
Frederick
County,
Series A,
5.00%,
7/1/25
860
879
Frederick
County,
Public
Facilities
Project,
GO,
5.00%,
4/1/25
1,500
1,541
Frederick
County,
Public
Facilities
Project,
GO,
5.00%,
4/1/26
1,565
1,638
Gaithersburg,
Asbury
Maryland
Obligated
Group,
Series B,
5.00%,
1/1/27
1,795
1,799
Harford
County,
GO,
5.00%,
10/1/25
815
845
Harford
County,
GO,
5.00%,
10/1/26
1,950
2,062
Harford
County,
Series B,
GO,
5.00%,
7/1/26
2,325
2,446
Howard
County,
Series B,
GO,
5.00%,
8/15/26
255
269
T.
ROWE
PRICE
Maryland
Short-Term
Tax-Free
Bond
Fund
Par
$
Value
(Amounts
in
000s)
Howard
County,
Series C,
GO,
5.00%,
2/15/25
720
738
Howard
County,
Series E,
GO,
5.00%,
2/15/25
1,000
1,025
Howard
County
Housing
Commission,
Roger
Carter
Recreational
Center,
5.00%,
6/1/24
260
263
Howard
County
Housing
Commission,
Roger
Carter
Recreational
Center,
5.00%,
6/1/25
235
242
Howard
County
Housing
Commission,
Roger
Carter
Recreational
Center,
5.00%,
6/1/26
120
126
Howard
County
Housing
Commission,
Roger
Carter
Recreational
Center,
5.00%,
6/1/27
125
133
Howard
County,
Consolidated
Public
Improvement,
Series A,
GO,
5.00%,
2/15/24
670
675
Howard
County,
Consolidated
Public
Improvement,
Series A,
GO,
5.00%,
2/15/25
560
574
Howard
County,
Consolidated
Public
Improvement,
Series A,
GO,
5.00%,
8/15/26
1,000
1,055
Howard
County,
Consolidated
Public
Improvement,
Series B,
GO,
5.00%,
2/15/25
1,000
1,025
Howard
County,
Special
Obligation,
Annapolis
Junction
Town
Center,
4.80%,
2/15/24
145
144
Maryland,
Series 2017-A,
GO,
5.00%,
8/1/25
2,215
2,291
Maryland,
Series 2019-A,
GO,
5.00%,
8/1/25
730
755
Maryland,
Series A,
GO,
5.00%,
3/15/24
485
489
Maryland,
Series A,
GO,
5.00%,
3/15/26
1,115
1,166
Maryland,
Series A,
GO,
5.00%,
8/1/26
2,485
2,620
Maryland,
Series A,
GO,
5.00%,
3/15/27
360
384
Maryland,
Series B,
GO,
5.00%,
8/1/24
1,590
1,615
Maryland,
Series B,
GO,
5.00%,
8/1/25
2,650
2,741
Maryland,
Series B,
GO,
5.00%,
8/1/26
250
264
Maryland,
Series C,
GO,
5.00%,
8/1/24
1,595
1,620
Maryland
CDA,
Series B,
0.25%,
9/1/23
580
580
Maryland
CDA,
Series C,
5.00%,
9/1/26
1,210
1,262
Maryland
CDA,
Series C,
5.00%,
9/1/27
1,100
1,164
Maryland
CDA
Local
Gov't.
Infrastructure,
Series A-1,
4.00%,
6/1/24
950
954
Maryland
DOT,
4.00%,
9/1/23
300
300
Maryland
DOT,
4.00%,
12/15/25
35
35
Maryland
DOT,
4.00%,
11/1/27
195
196
Maryland
DOT,
5.00%,
10/1/23
655
656
Maryland
DOT,
5.00%,
5/1/24
1,355
1,370
Maryland
DOT,
5.00%,
10/1/24
2,110
2,148
Maryland
DOT,
5.00%,
5/1/25
340
350
Maryland
DOT,
5.00%,
6/1/25
650
651
Maryland
DOT,
5.00%,
5/1/26
1,985
2,038
Maryland
DOT,
5.00%,
10/1/26
930
982
Maryland
DOT,
5.00%,
11/1/26
1,040
1,060
T.
ROWE
PRICE
Maryland
Short-Term
Tax-Free
Bond
Fund
Par
$
Value
(Amounts
in
000s)
Maryland
DOT,
5.00%,
10/1/27
2,005
2,121
Maryland
DOT,
COP,
5.00%,
6/15/24
(2)
750
758
Maryland
DOT,
Series A,
5.00%,
10/1/27
350
377
Maryland
DOT,
Series B,
5.00%,
8/1/26
(2)
1,235
1,272
Maryland
DOT,
Series B,
5.00%,
8/1/27
(2)
1,250
1,304
Maryland
Economic
Dev.,
Series B,
VRDN,
4.10%,
10/1/36
(Tender
4/3/28)
1,025
1,034
Maryland
Economic
Dev.,
Bowie
State
Univ.,
4.00%,
7/1/24
205
205
Maryland
Economic
Dev.,
Bowie
State
Univ.,
4.00%,
7/1/25
300
300
Maryland
Economic
Dev.,
Bowie
State
Univ.,
4.00%,
7/1/26
350
350
Maryland
Economic
Dev.,
Bowie
State
Univ.,
4.00%,
7/1/27
500
502
Maryland
Economic
Dev.,
Cargo
Revenue,
4.00%,
7/1/24
(1)(2)
585
579
Maryland
Economic
Dev.,
Morgan
State
Univ.,
5.00%,
7/1/26
750
774
Maryland
Economic
Dev.,
Morgan
State
Univ.,
5.00%,
7/1/27
750
784
Maryland
Economic
Dev.,
Purple
Line
Light
Rail
Project,
Series A,
5.00%,
11/12/28
(2)
780
796
Maryland
Economic
Dev.,
Salisbury
Univ.
Project,
5.00%,
6/1/27
1,250
1,250
Maryland
Economic
Dev.,
Transportation
Fac.
Project,
Series A,
5.00%,
6/1/25
180
181
Maryland
Economic
Dev.,
Univ.
of
Maryland
Baltimore
County
Project,
4.00%,
7/1/24
(3)
25
25
Maryland
Economic
Dev.,
Univ.
of
Maryland
College
Park
Project,
4.00%,
6/1/25
(3)
15
15
Maryland
Economic
Dev.,
Univ.
of
Maryland
College
Park
Project,
4.00%,
6/1/26
(3)
1,000
1,012
Maryland
Economic
Dev.,
Univ.
of
Maryland
Project,
4.00%,
7/1/25
200
198
Maryland
Economic
Dev.,
Univ.
of
Maryland
Project,
5.00%,
7/1/27
175
176
Maryland
HHEFA,
5.00%,
7/1/24
75
76
Maryland
HHEFA,
5.00%,
7/1/26
(Prerefunded
7/1/24)
(4)
80
81
Maryland
HHEFA,
5.00%,
7/1/32
(Prerefunded
7/1/24)
(4)
1,070
1,082
Maryland
HHEFA,
Adventist
Healthcare,
4.00%,
1/1/25
475
472
Maryland
HHEFA,
Adventist
Healthcare,
4.00%,
1/1/27
640
638
Maryland
HHEFA,
Adventist
Healthcare,
5.00%,
1/1/25
470
474
Maryland
HHEFA,
Adventist
Healthcare,
Series A,
5.50%,
1/1/26
1,085
1,116
Maryland
HHEFA,
Broadmead,
Series A,
5.00%,
7/1/24
185
186
Maryland
HHEFA,
Charlestown
Community,
Series A,
5.00%,
1/1/25
65
66
Maryland
HHEFA,
Charlestown
Community,
Series A,
5.00%,
1/1/28
350
360
Maryland
HHEFA,
Edenwald
Issue,
Retirement
Fac.,
5.00%,
1/1/25
310
312
Maryland
HHEFA,
Johns
Hopkins
Health,
Series A,
5.00%,
5/15/25
275
282
Maryland
HHEFA,
Lifebridge
Health,
3.00%,
7/1/25
245
241
Maryland
HHEFA,
Lifebridge
Health,
5.00%,
7/1/25
90
92
Maryland
HHEFA,
Lifebridge
Health,
5.00%,
7/1/26
90
94
T.
ROWE
PRICE
Maryland
Short-Term
Tax-Free
Bond
Fund
Par
$
Value
(Amounts
in
000s)
Maryland
HHEFA,
Lifebridge
Health,
5.00%,
7/1/28
(Prerefunded
7/1/25)
(4)
380
392
Maryland
HHEFA,
Lifebridge
Health,
Series 2015,
5.00%,
7/1/24
165
167
Maryland
HHEFA,
Lifebridge
Health,
Series 2017,
5.00%,
7/1/24
70
71
Maryland
HHEFA,
Loyola
Univ.,
Series A,
5.00%,
10/1/23
1,170
1,171
Maryland
HHEFA,
MedStar
Health,
5.00%,
8/15/24
385
389
Maryland
HHEFA,
MedStar
Health,
5.00%,
8/15/26
765
778
Maryland
HHEFA,
MedStar
Health,
Series A,
4.00%,
8/15/24
295
295
Maryland
HHEFA,
MedStar
Health,
Series A,
5.00%,
8/15/27
1,000
1,000
Maryland
HHEFA,
Meritus
Medical
Center,
5.00%,
7/1/25
1,500
1,522
Maryland
HHEFA,
Meritus
Medical
Center,
5.00%,
7/1/27
1,430
1,453
Maryland
HHEFA,
Meritus
Medical
Center,
5.00%,
7/1/28
100
102
Maryland
HHEFA,
Peninsula
Regional
Health
System,
5.00%,
7/1/26
200
207
Maryland
HHEFA,
Peninsula
Regional
Medical
Center,
5.00%,
7/1/34
(Prerefunded
7/1/24)
(4)
1,000
1,011
Maryland
HHEFA,
Stevenson
Univ.
Project,
5.00%,
6/1/28
195
205
Maryland
HHEFA,
Univ.
of
Maryland
Medical
System,
5.00%,
7/1/28
500
515
Maryland
HHEFA,
Univ.
of
Maryland
Medical
System,
Series B,
5.00%,
7/1/26
265
276
Maryland
HHEFA,
Univ.
of
Maryland
Medical
System,
Series B-1,
VRDN,
5.00%,
7/1/45
(Tender
7/1/25)
5,650
5,740
Maryland
HHEFA,
Univ.
of
Maryland
Medical
System,
Series B-2,
VRDN,
5.00%,
7/1/45
(Tender
7/1/27)
3,000
3,133
Maryland
HHEFA,
Univ.
of
Maryland
Medical
System,
Series D,
VRDN,
3.93%,
7/1/41
2,000
2,000
Maryland
HHEFA,
Western
Maryland
Health,
5.00%,
7/1/24
(5)
215
217
Maryland
HHEFA,
Western
Maryland
Health,
5.25%,
7/1/25
(Prerefunded
7/1/24)
(4)
2,500
2,533
Maryland
HHEFA,
Western
Maryland
Health,
5.25%,
7/1/26
(Prerefunded
7/1/24)
(4)
90
91
Maryland
HHEFA,
Western
Maryland
Health,
5.25%,
7/1/27
(Prerefunded
7/1/24)
(4)
3,340
3,384
Maryland
HHEFA,
Western
Maryland
Health,
5.25%,
7/1/34
(Prerefunded
7/1/24)
(4)
1,500
1,520
Maryland
Ind.
Dev.
Fin.
Auth.,
McDonogh
School,
5.00%,
9/1/24
325
330
Maryland
Stadium
Auth.,
Baltimore
City
Public
Schools,
5.00%,
5/1/24
135
137
Maryland
Stadium
Auth.,
Baltimore
City
Public
Schools,
5.00%,
5/1/28
100
105
Maryland
Stadium
Auth.,
Baltimore
City
Public
Schools,
5.00%,
5/1/34
(Prerefunded
5/1/26)
(4)
1,000
1,046
Maryland
Stadium
Auth.,
Baltimore
City
Public
Schools,
5.00%,
5/1/35
(Prerefunded
5/1/26)
(4)
2,000
2,093
Maryland
Stadium
Auth.,
Baltimore
City
Public
Schools,
5.00%,
5/1/46
(Prerefunded
5/1/26)
(4)
1,020
1,067
T.
ROWE
PRICE
Maryland
Short-Term
Tax-Free
Bond
Fund
Par
$
Value
(Amounts
in
000s)
Maryland
Stadium
Auth.,
Built
to
Learn
Revenue,
Series A,
5.00%,
6/1/26
2,025
2,113
Maryland
Stadium
Auth.,
Football
Stadium,
Series A,
5.00%,
3/1/26
290
302
Maryland
Transportation
Auth.,
Series A,
5.00%,
7/1/25
1,815
1,872
Maryland
Transportation
Auth.,
Passenger
Facility
Charge
Revenue,
5.00%,
6/1/25
(2)
1,000
1,020
Montgomery
County,
Series A,
GO,
5.00%,
11/1/23
730
732
Montgomery
County,
Series A,
GO,
5.00%,
12/1/23
115
115
Montgomery
County,
Series A,
GO,
5.00%,
11/1/27
(Prerefunded
11/1/24)
(4)
1,335
1,361
Montgomery
County,
Series B,
GO,
4.00%,
11/1/26
235
242
Montgomery
County,
Series B,
GO,
5.00%,
11/1/24
2,350
2,395
Montgomery
County,
Series C,
GO,
5.00%,
10/1/25
285
295
Montgomery
County,
Consolidated
Public
Improvement,
Series A,
GO,
5.00%,
8/1/25
3,000
3,097
Montgomery
County,
Consolidated
Public
Improvement,
Series A,
GO,
5.00%,
8/1/27
3,165
3,405
Prince
George's
County,
Series A,
GO,
5.00%,
8/1/25
1,000
1,033
Prince
George's
County,
Series A,
GO,
5.00%,
8/1/26
1,000
1,054
Prince
George's
County,
Consolidated
Public
Improvement,
Series 2018A,
GO,
5.00%,
7/15/27
365
392
Prince
George's
County,
Consolidated
Public
Improvement,
Series A,
GO,
5.00%,
7/15/25
340
351
Prince
George's
County,
Consolidated
Public
Improvement,
Series A,
GO,
5.00%,
7/15/27
500
537
Prince
George's
County,
Consolidated
Public
Improvement,
Series B,
GO,
5.00%,
7/15/26
450
474
Prince
George's
County,
National
Harbor
Project,
5.00%,
7/1/24
1,015
1,029
Prince
George's
County,
Regional
Medical
Center,
COP,
5.00%,
10/1/26
250
263
Rockville,
Ingleside
at
King
Farm
Project,
Series A-2,
3.375%,
11/1/27
450
413
Univ.
System
of
Maryland,
Series A,
5.00%,
4/1/24
1,280
1,292
Univ.
System
of
Maryland,
Series A,
5.00%,
4/1/26
1,885
1,970
Univ.
System
of
Maryland,
Series B,
5.00%,
4/1/26
145
152
Univ.
System
of
Maryland,
Series D,
4.00%,
10/1/23
2,090
2,091
Washington
County,
Homewood
Maryland
Obligated
Group,
4.00%,
5/1/24
250
248
Washington
Suburban
Sanitary
Commission,
5.00%,
6/1/24
1,960
1,985
Washington
Suburban
Sanitary
Commission,
5.00%,
6/1/25
540
556
Washington
Suburban
Sanitary
Commission,
Consolidated
Public
Improvement,
5.00%,
6/1/25
800
824
148,094
T.
ROWE
PRICE
Maryland
Short-Term
Tax-Free
Bond
Fund
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Par
$
Value
(Amounts
in
000s)
PUERTO
RICO
3.4%
Puerto
Rico
Commonwealth
Aqueduct
&
Sewer
Auth.,
Series B,
5.00%,
7/1/24
(1)
775
778
Puerto
Rico
Commonwealth
Aqueduct
&
Sewer
Auth.,
Series B,
5.00%,
7/1/28
(1)
750
767
Puerto
Rico
Commonwealth,
Restructured,
Series A-1,
GO,
5.375%,
7/1/25
1,415
1,442
Puerto
Rico
Commonwealth,
Restructured,
Series A-1,
GO,
5.625%,
7/1/27
2,200
2,292
5,279
Total
Investments
in
Securities
98.8%
of
Net
Assets
(Cost
$156,109)
$
153,373
‡
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
$2,736
and
represents
1.8%
of
net
assets.
(2)
Interest
subject
to
alternative
minimum
tax.
(3)
Insured
by
Assured
Guaranty
Municipal
Corporation
(4)
Prerefunded
date
is
used
in
determining
portfolio
maturity.
(5)
Escrowed
to
maturity
CDA
Community
Development
Administration/Authority
COP
Certificate
of
Participation
DOT
Department
of
Transportation
GO
General
Obligation
HHEFA
Health
&
Higher
Educational
Facility
Authority
VRDN
Variable
Rate
Demand
Note
under
which
the
holder
has
the
right
to
sell
the
security
to
the
issuer
or
the
issuer’s
agent
at
a
predetermined
price
on
specified
dates;
such
specified
dates
are
considered
the
effective
maturity
for
purposes
of
the
fund’s
weighted
average
maturity;
rate
shown
is
effective
rate
at
period-end
and
maturity
date
shown
is
final
maturity.
Certain
VRDN
rates
are
not
based
on
a
published
reference
rate
and
spread
but
may
adjust
periodically.
T.
ROWE
PRICE
Maryland
Short-Term
Tax-Free
Bond
Fund
August
31,
2023
(Unaudited)
Statement
of
Assets
and
Liabilities
($000s,
except
shares
and
per
share
amounts)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Assets
Investments
in
securities,
at
value
(cost
$156,109)
$
153,373
Interest
receivable
1,721
Receivable
for
shares
sold
138
Cash
79
Due
from
affiliates
2
Other
assets
31
Total
assets
155,344
Liabilities
Investment
management
fees
payable
51
Payable
for
shares
redeemed
25
Other
liabilities
104
Total
liabilities
180
NET
ASSETS
$
155,164
Net
Assets
Consist
of:
Total
distributable
earnings
(loss)
$
(
5,115
)
Paid-in
capital
applicable
to
30,676,026
shares
of
$0.0001
par
value
capital
stock
outstanding;
2,000,000,000
shares
of
the
Corporation
authorized
160,279
NET
ASSETS
$
155,164
NET
ASSET
VALUE
PER
SHARE
Investor
Class
(Net
assets:
$64,123;
Shares
outstanding:
12,693,514)
$
5.05
I
Class
(Net
assets:
$91,041;
Shares
outstanding:
17,982,512)
$
5.06
T.
ROWE
PRICE
Maryland
Short-Term
Tax-Free
Bond
Fund
(Unaudited)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
6
Months
Ended
8/31/23
Investment
Income
(Loss)
Interest
income
$
1,691
Expenses
Investment
management
304
Shareholder
servicing
Investor
Class
$
52
I
Class
8
60
Prospectus
and
shareholder
reports
Investor
Class
5
I
Class
2
7
Custody
and
accounting
92
Registration
22
Legal
and
audit
20
Proxy
and
annual
meeting
1
Miscellaneous
9
Waived
/
paid
by
Price
Associates
(
141
)
Total
expenses
374
Net
investment
income
1,317
Realized
and
Unrealized
Gain
/
Loss
–
Net
realized
loss
on
securities
(
441
)
Change
in
net
unrealized
gain
/
loss
on
securities
848
Net
realized
and
unrealized
gain
/
loss
407
INCREASE
IN
NET
ASSETS
FROM
OPERATIONS
$
1,724
T.
ROWE
PRICE
Maryland
Short-Term
Tax-Free
Bond
Fund
(Unaudited)
Statement
of
Changes
in
Net
Assets
6
Months
Ended
8/31/23
Year
Ended
2/28/23
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
$
1,317
$
1,735
Net
realized
loss
(
441
)
(
1,056
)
Change
in
net
unrealized
gain
/
loss
848
(
2,296
)
Increase
(decrease)
in
net
assets
from
operations
1,724
(
1,617
)
Distributions
to
shareholders
Net
earnings
Investor
Class
(
529
)
(
693
)
I
Class
(
786
)
(
1,041
)
Decrease
in
net
assets
from
distributions
(
1,315
)
(
1,734
)
Capital
share
transactions
*
Shares
sold
Investor
Class
3,652
34,532
I
Class
6,737
25,064
Distributions
reinvested
Investor
Class
506
664
I
Class
514
721
Shares
redeemed
Investor
Class
(
7,314
)
(
40,315
)
I
Class
(
8,126
)
(
25,465
)
Decrease
in
net
assets
from
capital
share
transactions
(
4,031
)
(
4,799
)
T.
ROWE
PRICE
Maryland
Short-Term
Tax-Free
Bond
Fund
(Unaudited)
Statement
of
Changes
in
Net
Assets
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
6
Months
Ended
8/31/23
Year
Ended
2/28/23
Net
Assets
Decrease
during
period
(
3,622
)
(
8,150
)
Beginning
of
period
158,786
166,936
End
of
period
$
155,164
$
158,786
*Share
information
(000s)
Shares
sold
Investor
Class
722
6,811
I
Class
1,326
4,924
Distributions
reinvested
Investor
Class
100
131
I
Class
102
142
Shares
redeemed
Investor
Class
(
1,443
)
(
7,962
)
I
Class
(
1,601
)
(
5,017
)
Decrease
in
shares
outstanding
(
794
)
(
971
)
T.
ROWE
PRICE
Maryland
Short-Term
Tax-Free
Bond
Fund
Unaudited
NOTES
TO
FINANCIAL
STATEMENTS
T.
Rowe
Price
State
Tax-Free
Funds,
Inc.
(the
corporation) is
registered
under
the
Investment
Company
Act
of
1940
(the
1940
Act).
The
Maryland
Short-Term
Tax-
Free
Bond
Fund
(the
fund)
is a
nondiversified, open-end
management
investment
company
established
by
the
corporation. The
fund
seeks
to
provide
the
highest
level
of
income
exempt
from
federal
and
Maryland
state
and
local
income
taxes
consistent
with
modest
fluctuation
in
principal
value.
The
fund
has
two classes
of
shares:
the
Maryland
Short-Term
Tax-Free
Bond
Fund
(Investor
Class)
and
the
Maryland
Short-
Term
Tax-Free
Bond
Fund–I
Class
(I
Class).
I
Class
shares
require
a
$500,000
initial
investment
minimum,
although
the
minimum
generally
is
waived
or
reduced
for
financial
intermediaries,
eligible
retirement
plans,
and
certain
other
accounts. Each
class
has
exclusive
voting
rights
on
matters
related
solely
to
that
class;
separate
voting
rights
on
matters
that
relate
to
both classes;
and,
in
all
other
respects,
the
same
rights
and
obligations
as
the
other
class.
NOTE
1
-
SIGNIFICANT
ACCOUNTING
POLICIES
Basis
of
Preparation
The fund
is
an
investment
company
and
follows
accounting
and
reporting
guidance
in
the
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standards
Codification
Topic
946
(ASC
946).
The
accompanying
financial
statements
were
prepared
in
accordance
with
accounting
principles
generally
accepted
in
the
United
States
of
America
(GAAP),
including,
but
not
limited
to,
ASC
946.
GAAP
requires
the
use
of
estimates
made
by
management.
Management
believes
that
estimates
and
valuations
are
appropriate;
however,
actual
results
may
differ
from
those
estimates,
and
the
valuations
reflected
in
the
accompanying
financial
statements
may
differ
from
the
value
ultimately
realized
upon
sale
or
maturity.
Investment
Transactions,
Investment
Income,
and
Distributions
Investment
transactions
are
accounted
for
on
the
trade
date
basis.
Income
and
expenses
are
recorded
on
the
accrual
basis.
Realized
gains
and
losses
are
reported
on
the
identified
cost
basis. Premiums
and
discounts
on
debt
securities
are
amortized
for
financial
reporting
purposes. Income
tax-related
interest
and
penalties,
if
incurred,
are
recorded
as
income
tax
expense. Non-cash
dividends,
if
any,
are
recorded
at
the
fair
market
value
of
the
asset
received. Distributions
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.
T.
ROWE
PRICE
Maryland
Short-Term
Tax-Free
Bond
Fund
Class
Accounting
Shareholder
servicing,
prospectus,
and
shareholder
report
expenses
incurred
by
each
class
are
charged
directly
to
the
class
to
which
they
relate.
Expenses
common
to
all
classes
and
investment
income
are
allocated
to
the
classes
based
upon
the
relative
daily
net
assets
of
each
class’s
settled
shares;
realized
and
unrealized
gains
and
losses
are
allocated
based
upon
the
relative
daily
net
assets
of
each
class’s
outstanding
shares.
Capital
Transactions
Each
investor’s
interest
in
the
net
assets
of the
fund
is
represented
by
fund
shares. The
fund’s
net
asset
value
(NAV)
per
share
is
computed
at
the
close
of
the
New
York
Stock
Exchange
(NYSE),
normally
4
p.m.
ET,
each
day
the
NYSE
is
open
for
business.
However,
the
NAV
per
share
may
be
calculated
at
a
time
other
than
the
normal
close
of
the
NYSE
if
trading
on
the
NYSE
is
restricted,
if
the
NYSE
closes
earlier,
or
as
may
be
permitted
by
the
SEC.
Purchases
and
redemptions
of
fund
shares
are
transacted
at
the
next-computed
NAV
per
share,
after
receipt
of
the
transaction
order
by
T.
Rowe
Price
Associates,
Inc.,
or
its
agents.
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
Fair
Value
The
fund’s
financial
instruments
are
valued
at
the
close
of
the
NYSE
and
are
reported
at
fair
value,
which
GAAP
defines
as
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
at
the
measurement
date. The fund’s
Board
of
Directors
(the
Board)
has
designated
T.
ROWE
PRICE
Maryland
Short-Term
Tax-Free
Bond
Fund
T.
Rowe
Price
Associates,
Inc.
as
the
fund’s
valuation
designee
(Valuation
Designee).
Subject
to
oversight
by
the
Board,
the
Valuation
Designee
performs
the
following
functions
in
performing
fair
value
determinations:
assesses
and
manages
valuation
risks;
establishes
and
applies
fair
value
methodologies;
tests
fair
value
methodologies;
and
evaluates
pricing
vendors
and
pricing
agents.
The
duties
and
responsibilities
of
the
Valuation
Designee
are
performed
by
its
Valuation
Committee. The
Valuation
Designee provides
periodic
reporting
to
the
Board
on
valuation
matters.
Various
valuation
techniques
and
inputs
are
used
to
determine
the
fair
value
of
financial
instruments.
GAAP
establishes
the
following
fair
value
hierarchy
that
categorizes
the
inputs
used
to
measure
fair
value:
Level
1
–
quoted
prices
(unadjusted)
in
active
markets
for
identical
financial
instruments
that
the
fund
can
access
at
the
reporting
date
Level
2
–
inputs
other
than
Level
1
quoted
prices
that
are
observable,
either
directly
or
indirectly
(including,
but
not
limited
to,
quoted
prices
for
similar
financial
instruments
in
active
markets,
quoted
prices
for
identical
or
similar
financial
instruments
in
inactive
markets,
interest
rates
and
yield
curves,
implied
volatilities,
and
credit
spreads)
Level
3
–
unobservable
inputs
(including
the Valuation
Designee’s assumptions
in
determining
fair
value)
Observable
inputs
are
developed
using
market
data,
such
as
publicly
available
information
about
actual
events
or
transactions,
and
reflect
the
assumptions
that
market
participants
would
use
to
price
the
financial
instrument.
Unobservable
inputs
are
those
for
which
market
data
are
not
available
and
are
developed
using
the
best
information
available
about
the
assumptions
that
market
participants
would
use
to
price
the
financial
instrument.
GAAP
requires
valuation
techniques
to
maximize
the
use
of
relevant
observable
inputs
and
minimize
the
use
of
unobservable
inputs.
When
multiple
inputs
are
used
to
derive
fair
value,
the
financial
instrument
is
assigned
to
the
level
within
the
fair
value
hierarchy
based
on
the
lowest-level
input
that
is
significant
to
the
fair
value
of
the
financial
instrument.
Input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level
but
rather
the
degree
of
judgment
used
in
determining
those
values.
Valuation
Techniques
Debt
securities
generally
are
traded
in
the over-the-counter
(OTC)
market
and
are
valued
at
prices
furnished
by
independent
pricing
services
or
by
broker
dealers
who
make
markets
in
such
securities.
When
valuing
securities,
the
T.
ROWE
PRICE
Maryland
Short-Term
Tax-Free
Bond
Fund
independent
pricing
services
consider
factors
such
as,
but
not
limited
to,
the
yield
or
price
of
bonds
of
comparable
quality,
coupon,
maturity,
and
type,
as
well
as
prices
quoted
by
dealers
who
make
markets
in
such
securities.
Assets
and
liabilities
other
than
financial
instruments,
including
short-term
receivables
and
payables,
are
carried
at
cost,
or
estimated
realizable
value,
if
less,
which
approximates
fair
value.
Investments
for
which
market
quotations are
not
readily
available
or
deemed
unreliable
are
valued
at
fair
value
as
determined
in
good
faith
by
the
Valuation
Designee.
The
Valuation
Designee
has
adopted
methodologies
for
determining
the
fair
value
of
investments
for
which
market
quotations
are
not
readily
available
or
deemed
unreliable,
including
the
use
of
other
pricing
sources.
Factors
used
in
determining
fair
value
vary
by
type
of
investment
and
may
include
market
or
investment
specific
considerations.
The
Valuation
Designee typically
will
afford
greatest
weight
to
actual
prices
in
arm’s
length
transactions,
to
the
extent
they
represent
orderly
transactions
between
market
participants,
transaction
information
can
be
reliably
obtained,
and
prices
are
deemed
representative
of
fair
value.
However,
the
Valuation
Designee may
also
consider
other
valuation
methods
such
as
market-based
valuation
multiples;
a
discount
or
premium
from
market
value
of
a
similar,
freely
traded
security
of
the
same
issuer;
discounted
cash
flows;
yield
to
maturity;
or
some
combination.
Fair
value
determinations
are
reviewed
on
a
regular
basis.
Because
any
fair
value
determination
involves
a
significant
amount
of
judgment,
there
is
a
degree
of
subjectivity
inherent
in
such
pricing
decisions. Fair
value
prices
determined
by
the
Valuation
Designee could
differ
from
those
of
other
market
participants,
and
it
is
possible
that
the
fair
value
determined
for
a
security
may
be
materially
different
from
the
value
that
could
be
realized
upon
the
sale
of
that
security.
Valuation
Inputs
On
August
31,
2023,
all
of
the
fund’s
financial
instruments
were
classified
as
Level
2,
based
on
the
inputs
used
to
determine
their
fair
values.
NOTE
3
-
OTHER
INVESTMENT
TRANSACTIONS
Consistent
with
its
investment
objective,
the
fund
engages
in
the
following
practices
to
manage
exposure
to
certain
risks
and/or
to
enhance
performance.
The
investment
objective,
policies,
program,
and
risk
factors
of
the
fund
are
described
more
fully
in
the
fund's
prospectus
and
Statement
of
Additional
Information.
Restricted
Securities
The
fund
invests
in
securities
that
are
subject
to
legal
or
contractual
restrictions
on
resale.
Prompt
sale
of
such
securities
at
an
acceptable
price
may
be
difficult
and
may
involve
substantial
delays
and
additional
costs.
T.
ROWE
PRICE
Maryland
Short-Term
Tax-Free
Bond
Fund
Other
Purchases
and
sales
of
portfolio
securities
other
than
short-term securities
aggregated $31,474,000 and
$32,323,000,
respectively,
for
the
six
months ended
August
31,
2023.
NOTE
4
-
FEDERAL
INCOME
TAXES
Generally,
no
provision
for
federal
income
taxes
is
required
since
the
fund
intends
to
continue
to
qualify
as
a
regulated
investment
company
under
Subchapter
M
of
the
Internal
Revenue
Code
and
distribute
to
shareholders
all
of
its
income
and
gains.
Distributions
determined
in
accordance
with
federal
income
tax
regulations
may
differ
in
amount
or
character
from
net
investment
income
and
realized
gains
for
financial
reporting
purposes.
Financial
reporting
records
are
adjusted
for
permanent
book/
tax
differences
to
reflect
tax
character
but
are
not
adjusted
for
temporary
differences.
The
amount
and
character
of
tax-basis
distributions
and
composition
of
net
assets
are
finalized
at
fiscal
year-end;
accordingly,
tax-basis
balances
have
not
been
determined
as
of
the
date
of
this
report.
The
fund
intends
to
retain
realized
gains
to
the
extent
of
available
capital
loss
carryforwards.
Net
realized
capital
losses
may
be
carried
forward
indefinitely
to
offset
future
realized
capital
gains.
As
of
February
28,
2023,
the
fund
had
$1,982,000 of
available
capital
loss
carryforwards.
At
August
31,
2023,
the
cost
of
investments
(including
derivatives,
if
any)
for
federal
income
tax
purposes
was
$156,109,000.
Net
unrealized
loss
aggregated
$2,736,000
at
period-end,
of
which $24,000
related
to
appreciated
investments
and $2,760,000
related
to
depreciated
investments.
NOTE
5
-
RELATED
PARTY
TRANSACTIONS
The
fund
is
managed
by
T.
Rowe
Price
Associates,
Inc.
(Price
Associates),
a
wholly
owned
subsidiary
of
T.
Rowe
Price
Group,
Inc.
(Price
Group).
The
investment
management
agreement
between
the
fund
and
Price
Associates
provides
for
an
annual
investment
management
fee,
which
is
computed
daily
and
paid
monthly. The
fee
consists
of
an
individual
fund
fee,
equal
to
0.10%
of
the
fund’s
average
daily
net
assets,
and
a
group
fee.
The
group
fee
rate
is
calculated
based
on
the
combined
net
assets
of
certain
mutual
funds
sponsored
by
Price
Associates
(the
group)
applied
to
a
graduated
fee
schedule,
with
rates
ranging
from
0.48%
for
the
first
$1
billion
of
assets
to
0.260%
T.
ROWE
PRICE
Maryland
Short-Term
Tax-Free
Bond
Fund
for
assets
in
excess
of
$845
billion.
The
fund’s
group
fee
is
determined
by
applying
the
group
fee
rate
to
the
fund’s
average
daily
net
assets. At
August
31,
2023,
the
effective
annual
group
fee
rate
was
0.29%.
The Investor Class is
subject
to
a
contractual
expense
limitation
through
the
expense
limitation
date
indicated
in
the
table
below.
During
the
limitation
period,
Price
Associates
is required
to
waive
its
management
fee
or
pay
any
expenses
(excluding
interest;
expenses
related
to
borrowings,
taxes,
and
brokerage;
non-recurring,
extraordinary expenses;
and
acquired
fund
fees
and
expenses) that
would
otherwise
cause
the
class’s
ratio
of
annualized
total
expenses
to
average
net
assets
(net
expense
ratio)
to
exceed
its
expense
limitation.
The
class
is
required
to
repay
Price
Associates
for
expenses
previously
waived/paid
to
the
extent
the
class’s
net
assets
grow
or
expenses
decline
sufficiently
to
allow
repayment
without
causing
the
class’s
net
expense
ratio
(after
the
repayment
is
taken
into
account)
to
exceed
the
lesser
of:
(1)
the
expense
limitation
in
place
at
the
time
such
amounts
were
waived;
or
(2)
the
class’s
current
expense
limitation.
However,
no
repayment
will
be
made
more
than
three
years
after
the
date
of
a
payment
or
waiver.
The
I
Class
is
also
subject
to
an
operating
expense
limitation
(I
Class
Limit)
pursuant
to
which
Price
Associates
is
contractually
required
to
pay
all
operating
expenses
of
the
I
Class,
excluding
management
fees;
interest;
expenses
related
to
borrowings,
taxes,
and
brokerage; non-recurring,
extraordinary expenses; and
acquired
fund
fees
and
expenses, to
the
extent
such
operating
expenses,
on
an
annualized
basis,
exceed
the
I
Class
Limit. This
agreement
will
continue
through
the
expense
limitation
date
indicated
in
the
table
below,
and
may
be
renewed,
revised,
or
revoked
only
with
approval
of
the
fund’s
Board.
The
I
Class
is
required
to
repay
Price
Associates
for
expenses
previously
paid
to
the
extent
the
class’s
net
assets
grow
or
expenses
decline
sufficiently
to
allow
repayment
without
causing
the
class’s
operating
expenses
(after
the
repayment
is
taken
into
account)
to
exceed
the
lesser
of:
(1)
the
I
Class
Limit
in
place
at
the
time
such
amounts
were
paid;
or
(2)
the
current
I
Class
Limit.
However,
no
repayment
will
be
made
more
than
three
years
after
the
date
of
a
payment
or
waiver.
Pursuant
to
these
agreements,
expenses
were
waived/paid
by
and/or
repaid
to
Price
Associates
during
the
six
months ended August
31,
2023
as
indicated
in
the
table
below.
Including these
amounts,
expenses
previously
waived/paid
by
Price
Associates
in
the
amount
of $725,000 remain
subject
to
repayment
by
the
fund
at
August
31,
2023.
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.
T.
ROWE
PRICE
Maryland
Short-Term
Tax-Free
Bond
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
six
months
ended
August
31,
2023,
expenses
incurred
pursuant
to
these
service
agreements
were
$60,000
for
Price
Associates
and
$28,000
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.
The
fund may
participate
in
securities
purchase
and
sale
transactions
with
other
funds
or
accounts
advised
by
Price
Associates
(cross
trades),
in
accordance
with
procedures
adopted
by the
fund’s
Board
and
Securities
and
Exchange
Commission
rules,
which
require,
among
other
things,
that
such
purchase
and
sale
cross
trades
be
effected
at
the
independent
current
market
price
of
the
security.
During
the
six
months
ended
August
31,
2023,
the
fund
had
no
purchases
or
sales
cross
trades
with
other
funds
or
accounts
advised
by
Price
Associates.
NOTE
6
-
OTHER
MATTERS
Unpredictable
events
such
as
environmental
or
natural
disasters,
war,
terrorism,
pandemics,
outbreaks
of
infectious
diseases,
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.
Since
2020,
a
novel
strain
of
coronavirus
(COVID-19)
has
resulted
in
disruptions
to
global
business
activity
and
caused
significant
volatility
and
declines
in
global
financial
markets.
Investor
Class
I
Class
Expense
limitation/I
Class
Limit
0.53%
0.05%
Expense
limitation
date
06/30/24
06/30/24
(Waived)/repaid
during
the
period
($000s)
$(70)
$(71)
T.
ROWE
PRICE
Maryland
Short-Term
Tax-Free
Bond
Fund
In
February
2022,
Russian
forces
entered
Ukraine
and
commenced
an
armed
conflict
leading
to
economic
sanctions
being
imposed
on
Russia
and
certain
of
its
citizens,
creating
impacts
on
Russian-related
stocks
and
debt
and
greater
volatility
in
global
markets.
In
March
2023,
the
collapse
of
some
US
regional
and
global
banks
as
well
as
overall
concerns
around
the
soundness
and
stability
of
the
global
banking
sector
has
sparked
concerns
of
a
broader
financial
crisis
impacting
the
overall
global
banking
sector.
In
certain
cases,
government
agencies
have
assumed
control
or
otherwise
intervened
in
the
operations
of
certain
banks
due
to
liquidity
and
solvency
concerns.
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
Maryland
Short-Term
Tax-Free
Bond
Fund
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.
RESULTS
OF
PROXY
VOTING
A
Special
Meeting
of
Shareholders
was
held
on
July
24,
2023
for
shareholders
of
record
on
April
7,
2023,
to
elect
the
following
director-nominees
to
serve
on
the
Board
of
all
Price
Funds.
The
newly
elected
Directors
took
office
effective
July
24,
2023.
The
results
of
the
voting
were
as
follows:
Teresa
Bryce
Bazemore,
Bruce
W.
Duncan,
Robert
J.
Gerrard,
Jr.,
Paul
F.
McBride
and
David
Oestreicher
continue
to
serve
as
Directors
on
the
Board
of
all
Price
Funds.
HOW
TO
OBTAIN
QUARTERLY
PORTFOLIO
HOLDINGS
The
fund
files
a
complete
schedule
of
portfolio
holdings
with
the
Securities
and
Exchange
Commission
(SEC)
for
the
first
and
third
quarters
of
each
fiscal
year
as
an
exhibit
to
its
reports
on
Form
N-PORT.
The
fund’s
reports
on
Form
N-PORT
are
available
electronically
on
the
SEC’s
website
(sec.gov).
In
addition,
most
T.
Rowe
Price
funds
disclose
their
first
and
third
fiscal
quarter-end
holdings
on
troweprice.com
.
Votes
For
Votes
Withheld
Melody
Bianchetto
268,416,291
2,275,410
Mark
J.
Parrell
268,553,693
2,457,333
Kellye
L.
Walker
268,174,949
2,486,113
Eric
L.
Veiel
269,060,099
2,087,533
T.
ROWE
PRICE
Maryland
Short-Term
Tax-Free
Bond
Fund
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
Maryland
Short-Term
Tax-Free
Bond
Fund
APPROVAL
OF
INVESTMENT
MANAGEMENT
AGREEMENT
Each
year,
the
fund’s
Board
of
Directors
(Board)
considers
the
continuation
of
the
investment
management
agreement
(Advisory
Contract)
between
the
fund
and
its
investment
adviser,
T.
Rowe
Price
Associates,
Inc.
(Adviser).
In
that
regard,
at
a
meeting
held
on
March
6–7,
2023
(Meeting),
the
Board,
including
all
of
the
fund’s
independent
directors,
approved
the
continuation
of
the
fund’s
Advisory
Contract.
At
the
Meeting,
the
Board
considered
the
factors
and
reached
the
conclusions
described
below
relating
to
the
selection
of
the
Adviser
and
the
approval
of
the
Advisory
Contract.
The
independent
directors
were
assisted
in
their
evaluation
of
the
Advisory
Contract
by
independent
legal
counsel
from
whom
they
received
separate
legal
advice
and
with
whom
they
met
separately.
In
providing
information
to
the
Board,
the
Adviser
was
guided
by
a
detailed
set
of
requests
for
information
submitted
by
independent
legal
counsel
on
behalf
of
the
independent
directors.
In
considering
and
approving
the
continuation
of
the
Advisory
Contract,
the
Board
considered
the
information
it
believed
was
relevant,
including,
but
not
limited
to,
the
information
discussed
below.
The
Board
considered
not
only
the
specific
information
presented
in
connection
with
the
Meeting
but
also
the
knowledge
gained
over
time
through
interaction
with
the
Adviser
about
various
topics.
The
Board
meets
regularly
and,
at
each
of
its
meetings,
covers
an
extensive
agenda
of
topics
and
materials
and
considers
factors
that
are
relevant
to
its
annual
consideration
of
the
renewal
of
the
T.
Rowe
Price
funds’
advisory
contracts,
including
performance
and
the
services
and
support
provided
to
the
funds
and
their
shareholders.
Services
Provided
by
the
Adviser
The
Board
considered
the
nature,
quality,
and
extent
of
the
services
provided
to
the
fund
by
the
Adviser.
These
services
included,
but
were
not
limited
to,
directing
the
fund’s
investments
in
accordance
with
its
investment
program
and
the
overall
management
of
the
fund’s
portfolio,
as
well
as
a
variety
of
related
activities
such
as
financial,
investment
operations,
and
administrative
services;
compliance;
maintaining
the
fund’s
records
and
registrations;
and
shareholder
communications.
The
Board
also
reviewed
the
background
and
experience
of
the
Adviser’s
senior
management
team
and
investment
personnel
involved
in
the
management
of
the
fund,
as
well
as
the
Adviser’s
compliance
record.
The
Board
concluded
that
the
information
it
considered
with
respect
to
the
nature,
quality,
and
extent
of
the
services
provided
by
the
Adviser,
as
well
as
the
other
factors
considered
at
the
Meeting,
supported
the
Board’s
approval
of
the
continuation
of
the
Advisory
Contract.
Investment
Performance
of
the
Fund
The
Board
took
into
account
discussions
with
the
Adviser
and
detailed
reports
that
it
regularly
receives
throughout
the
year
on
relative
and
absolute
performance
for
the
T.
Rowe
Price
funds.
In
connection
with
the
Meeting,
the
Board
reviewed
information
provided
by
the
Adviser
that
compared
the
fund’s
total
returns,
as
well
as
a
wide
variety
of
other
previously
agreed-upon
performance
measures
and
market
data,
against
relevant
benchmark
indexes
and
peer
groups
of
funds
with
similar
investment
programs
for
T.
ROWE
PRICE
Maryland
Short-Term
Tax-Free
Bond
Fund
various
periods
through
December
31,
2022. Additionally,
the
Board
reviewed
the
fund’s
relative
performance
information
as
of
September
30,
2022,
which
ranked
the
returns
of
the
fund’s
Investor
Class
for
various
periods
against
a
universe
of
funds
with
similar
investment
programs
selected
by
Broadridge,
an
independent
provider
of
mutual
fund
data.
In
the
course
of
its
deliberations,
the
Board
considered
performance
information
provided
throughout
the
year
and
in
connection
with
the
Advisory
Contract
review
at
the
Meeting,
as
well
as
information
provided
during
investment
review
meetings
conducted
with
portfolio
managers
and
senior
investment
personnel
during
the
course
of
the
year
regarding
the
fund’s
performance.
The
Board
also
considered
relevant
factors,
such
as
overall
market
conditions
and
trends
that
could
adversely
impact
the
fund’s
performance,
length
of
the
fund’s
performance
track
record,
and
how
closely
the
fund’s
strategies
align
with
its
benchmarks
and
peer
groups.
The
Board
concluded
that
the
information
it
considered
with
respect
to
the
fund’s
performance,
as
well
as
the
other
factors
considered
at
the
Meeting,
supported
the
Board’s
approval
of
the
continuation
of
the
Advisory
Contract.
Costs,
Benefits,
Profits,
and
Economies
of
Scale
The
Board
reviewed
detailed
information
regarding
the
revenues
received
by
the
Adviser
under
the
Advisory
Contract
and
other
direct
and
indirect
benefits
that
the
Adviser
(and
its
affiliates)
may
have
realized
from
its
relationship
with
the
fund.
In
considering
soft-
dollar
arrangements
pursuant
to
which
research
may
be
received
from
broker-dealers
that
execute
the
fund’s
portfolio
transactions,
the
Board
noted
that
the
Adviser
bears
the
cost
of
research
services
for
all
client
accounts
that
it
advises,
including
the
T.
Rowe
Price
funds.
The
Board
received
information
on
the
estimated
costs
incurred
and
profits
realized
by
the
Adviser
from
managing
the
T.
Rowe
Price
funds.
While
the
Board
did
not
review
information
regarding
profits
realized
from
managing
the
fund
in
particular
because
the
fund
had
either
not
achieved
sufficient
portfolio
asset
size
or
not
recognized
sufficient
revenues
to
produce
meaningful
profit
margin
percentages,
the
Board
concluded
that
the
Adviser’s
profits
were
reasonable
in
light
of
the
services
provided
to
the
T.
Rowe
Price
funds.
The
Board
also
considered
whether
the
fund
benefits
under
the
fee
levels
set
forth
in
the
Advisory
Contract
or
otherwise
from
any
economies
of
scale
realized
by
the
Adviser.
Under
the
Advisory
Contract,
the
fund
pays
a
fee
to
the
Adviser
for
investment
management
services
composed
of
two
components—a
group
fee
rate
based
on
the
combined
average
net
assets
of
most
of
the
T.
Rowe
Price
funds
(including
the
fund)
that
declines
at
certain
asset
levels
and
an
individual
fund
fee
rate
based
on
the
fund’s
average
daily
net
assets—and
the
fund
pays
its
own
expenses
of
operations.
The
group
fee
rate
decreases
as
total
T.
Rowe
Price
fund
assets
grow,
which
reduces
the
management
fee
rate
for
any
fund
that
has
a
group
fee
component
to
its
management
fee,
and
reflects
that
certain
resources
utilized
to
operate
the
fund
are
shared
with
other
T.
Rowe
Price
funds
thus
allowing
shareholders
of
those
funds
to
share
potential
APPROVAL
OF
INVESTMENT
MANAGEMENT
AGREEMENT
(continued)
T.
ROWE
PRICE
Maryland
Short-Term
Tax-Free
Bond
Fund
economies
of
scale.
The
fund
is
also
subject
to
contractual
expense
limitations
that
require
the
Adviser
to
waive
its
fees
and/or
bear
any
expenses
that
would
otherwise
cause
the
expenses
of
a
share
class
of
the
fund
to
exceed
a
certain
percentage
based
on
the
class’s
net
assets.
The
expense
limitations
mitigate
the
potential
for
an
increase
in
operating
expenses
above
a
certain
level
that
could
impact
shareholders.
In
addition,
the
Board
noted
that
the
fund
potentially
shares
in
indirect
economies
of
scale
through
the
Adviser’s
ongoing
investments
in
its
business
in
support
of
the
T.
Rowe
Price
funds,
including
investments
in
trading
systems,
technology,
and
regulatory
support
enhancements,
and
the
ability
to
possibly
negotiate
lower
fee
arrangements
with
third-
party
service
providers.
The
Board
concluded
that
the
advisory
fee
structure
for
the
fund
provides
for
a
reasonable
sharing
of
benefits
from
any
economies
of
scale
with
the
fund’s
investors.
Fees
and
Expenses
The
Board
was
provided
with
information
regarding
industry
trends
in
management
fees
and
expenses.
Among
other
things,
the
Board
reviewed
data
for
peer
groups
that
were
compiled
by
Broadridge,
which
compared:
(i)
contractual
management
fees,
actual
management
fees,
nonmanagement
expenses,
and
total
expenses
of
the
Investor
Class
of
the
fund
with
a
group
of
competitor
funds
selected
by
Broadridge
(Expense
Group)
and
(ii)
actual
management
fees,
nonmanagement
expenses,
and
total
expenses
of
the
Investor
Class
of
the
fund
with
a
broader
set
of
funds
within
the
Lipper
investment
classification
(Expense
Universe).
The
Board
considered
the
fund’s
contractual
management
fee
rate,
actual
management
fee
rate
(which
reflects
the
management
fees
actually
received
from
the
fund
by
the
Adviser
after
any
applicable
waivers,
reductions,
or
reimbursements),
operating
expenses,
and
total
expenses
(which
reflect
the
net
total
expense
ratio
of
the
fund
after
any
waivers,
reductions,
or
reimbursements)
in
comparison
with
the
information
for
the
Broadridge
peer
groups.
Broadridge
generally
constructed
the
peer
groups
by
seeking
the
most
comparable
funds
based
on
similar
investment
classifications
and
objectives,
expense
structure,
asset
size,
and
operating
components
and
attributes
and
ranked
funds
into
quintiles,
with
the
first
quintile
representing
the
funds
with
the
lowest
relative
expenses
and
the
fifth
quintile
representing
the
funds
with
the
highest
relative
expenses.
The
information
provided
to
the
Board
indicated
that
the
fund’s
contractual
management
fee
ranked
in
the
third
quintile
(Expense
Group),
the
fund’s
actual
management
fee
rate
ranked
in
the
first
quintile
(Expense
Group
and
Expense
Universe),
and
the
fund’s
total
expenses
ranked
in
the
fourth
quintile
(Expense
Group)
and
fifth
quintile
(Expense
Universe).
The
Board
also
reviewed
the
fee
schedules
for
other
investment
portfolios
with
similar
mandates
that
are
advised
or
subadvised
by
the
Adviser
and
its
affiliates,
including
separately
managed
accounts
for
institutional
and
individual
investors;
subadvised
funds;
and
other
sponsored
investment
portfolios,
including
collective
investment
trusts
and
pooled
vehicles
organized
and
offered
to
investors
outside
the
United
States.
Management
provided
the
Board
with
information
about
the
Adviser’s
responsibilities
APPROVAL
OF
INVESTMENT
MANAGEMENT
AGREEMENT
(continued)
T.
ROWE
PRICE
Maryland
Short-Term
Tax-Free
Bond
Fund
and
services
provided
to
subadvisory
and
other
institutional
account
clients,
including
information
about
how
the
requirements
and
economics
of
the
institutional
business
are
fundamentally
different
from
those
of
the
proprietary
mutual
fund
business.
The
Board
considered
information
showing
that
the
Adviser’s
mutual
fund
business
is
generally
more
complex
from
a
business
and
compliance
perspective
than
its
institutional
account
business
and
considered
various
relevant
factors,
such
as
the
broader
scope
of
operations
and
oversight,
more
extensive
shareholder
communication
infrastructure,
greater
asset
flows,
heightened
business
risks,
and
differences
in
applicable
laws
and
regulations
associated
with
the
Adviser’s
proprietary
mutual
fund
business.
In
assessing
the
reasonableness
of
the
fund’s
management
fee
rate,
the
Board
considered
the
differences
in
the
nature
of
the
services
required
for
the
Adviser
to
manage
its
mutual
fund
business
versus
managing
a
discrete
pool
of
assets
as
a
subadviser
to
another
institution’s
mutual
fund
or
for
an
institutional
account
and
that
the
Adviser
generally
performs
significant
additional
services
and
assumes
greater
risk
in
managing
the
fund
and
other
T.
Rowe
Price
funds
than
it
does
for
institutional
account
clients,
including
subadvised
funds.
On
the
basis
of
the
information
provided
and
the
factors
considered,
the
Board
concluded
that
the
fees
paid
by
the
fund
under
the
Advisory
Contract
are
reasonable.
Approval
of
the
Advisory
Contract
As
noted,
the
Board
approved
the
continuation
of
the
Advisory
Contract.
No
single
factor
was
considered
in
isolation
or
to
be
determinative
to
the
decision.
Rather,
the
Board
concluded,
in
light
of
a
weighting
and
balancing
of
all
factors
considered,
that
it
was
in
the
best
interests
of
the
fund
and
its
shareholders
for
the
Board
to
approve
the
continuation
of
the
Advisory
Contract
(including
the
fees
to
be
charged
for
services
thereunder).
APPROVAL
OF
INVESTMENT
MANAGEMENT
AGREEMENT
(continued)
T.
ROWE
PRICE
Maryland
Short-Term
Tax-Free
Bond
Fund
LIQUIDITY
RISK
MANAGEMENT
PROGRAM
In accordance
with
Rule
22e-4
(Liquidity
Rule)
under
the
Investment
Company
Act
of
1940,
as
amended,
the
fund
has
established
a
liquidity
risk
management
program
(Liquidity
Program)
reasonably
designed
to
assess
and
manage
the
fund’s
liquidity
risk,
which
generally
represents
the
risk
that
the
fund
would
not
be
able
to
meet
redemption
requests
without
significant
dilution
of
remaining
investors’
interests
in
the
fund.
The
fund’s
Board
of
Directors
(Board)
has
appointed
the
fund’s
investment
adviser,
T.
Rowe
Price
Associates,
Inc.
(Adviser),
as
the
administrator
of
the
Liquidity
Program.
As
administrator,
the
Adviser
is
responsible
for
overseeing
the
day-to-day
operations
of
the
Liquidity
Program
and,
among
other
things,
is
responsible
for
assessing,
managing,
and
reviewing
with
the
Board
at
least
annually
the
liquidity
risk
of
each
T.
Rowe
Price
fund.
The
Adviser
has
delegated
oversight
of
the
Liquidity
Program
to
a
Liquidity
Risk
Committee
(LRC),
which
is
a
cross-functional
committee
composed
of
personnel
from
multiple
departments
within
the
Adviser.
The
Liquidity
Program’s
principal
objectives
include
supporting
the
T.
Rowe
Price
funds’
compliance
with
limits
on
investments
in
illiquid
assets
and
mitigating
the
risk
that
the
fund
will
be
unable
to
timely
meet
its
redemption
obligations.
The
Liquidity
Program
also
includes
a
number
of
elements
that
support
the
management
and
assessment
of
liquidity
risk,
including
an
annual
assessment
of
factors
that
influence
the
fund’s
liquidity
and
the
periodic
classification
and
reclassification
of
a
fund’s
investments
into
categories
that
reflect
the
LRC’s
assessment
of
their
relative
liquidity
under
current
market
conditions.
Under
the
Liquidity
Program,
every
investment
held
by
the
fund
is
classified
at
least
monthly
into
one
of
four
liquidity
categories
based
on
estimations
of
the
investment’s
ability
to
be
sold
during
designated
time
frames
in
current
market
conditions
without
significantly
changing
the
investment’s
market
value.
As
required
by
the
Liquidity
Rule,
at
a
meeting
held
on
July
24,
2023,
the
Board
was
presented
with
an
annual
assessment
prepared
by
the
LRC,
on
behalf
of
the
Adviser,
that
addressed
the
operation
of
the
Liquidity
Program
and
assessed
its
adequacy
and
effectiveness
of
implementation,
including
any
material
changes
to
the
Liquidity
Program
and
the
determination
of
each
fund’s
Highly
Liquid
Investment
Minimum
(HLIM).
The
annual
assessment
included
consideration
of
the
following
factors,
as
applicable:
the
fund’s
investment
strategy
and
liquidity
of
portfolio
investments
during
normal
and
reasonably
foreseeable
stressed
conditions,
including
whether
the
investment
strategy
is
appropriate
for
an
open-end
fund,
the
extent
to
which
the
strategy
involves
a
relatively
concentrated
portfolio
or
large
positions
in
particular
issuers,
and
the
use
of
borrowings
for
investment
purposes
and
derivatives;
short-term
and
long-term
cash
flow
projections
covering
both
normal
and
reasonably
foreseeable
stressed
conditions;
and
holdings
of
cash
and
cash
equivalents,
as
well
as
available
borrowing
arrangements.
T.
ROWE
PRICE
Maryland
Short-Term
Tax-Free
Bond
Fund
For
the
fund
and
other
T.
Rowe
Price
funds,
the
annual
assessment
incorporated
a
report
related
to
a
fund’s
holdings,
shareholder
and
portfolio
concentration,
any
borrowings
during
the
period,
cash
flow
projections,
and
other
relevant
data
for
the
period
of
April
1,
2022,
through
March
31,
2023.
The
report
described
the
methodology
for
classifying
a
fund’s
investments
(including
any
derivative
transactions)
into
one
of
four
liquidity
categories,
as
well
as
the
percentage
of
a
fund’s
investments
assigned
to
each
category.
It
also
explained
the
methodology
for
establishing
a
fund’s
HLIM
and
noted
that
the
LRC
reviews
the
HLIM
assigned
to
each
fund
no
less
frequently
than
annually.
During
the
period
covered
by
the
annual
assessment,
the
LRC
has
concluded,
and
reported
to
the
Board,
that
the
Liquidity
Program
continues
to
operate
adequately
and
effectively
and
is
reasonably
designed
to
assess
and
manage
the
fund’s
liquidity
risk.
LIQUIDITY
RISK
MANAGEMENT
PROGRAM
(continued)
100
East
Pratt
Street
Baltimore,
MD
21202
T.
Rowe
Price
Investment
Services,
Inc.
Call
1-800-225-5132
to
request
a
prospectus
or
summary
prospectus;
each
includes
investment
objectives,
risks,
fees,
expenses,
and
other
information
that
you
should
read
and
consider
carefully
before
investing.
F90-051
10/23
Item 1. (b) Notice pursuant to Rule 30e-3.
Not applicable.
Item 2. Code of Ethics.
A code of ethics, as defined in Item 2 of Form N-CSR, applicable to its principal executive officer,
principal financial officer, principal accounting officer or controller, or persons performing similar functions is filed as an exhibit to the registrant’s annual Form N-CSR. No substantive amendments
were approved or waivers were granted to this code of ethics during the registrant’s most recent fiscal half-year.
Item 3. Audit Committee
Financial Expert.
Disclosure required in registrant’s annual Form N-CSR.
Item 4. Principal Accountant Fees and Services.
Disclosure required in registrant’s annual Form N-CSR.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
(a) Not applicable. The complete schedule of investments is included in Item 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.
(a)(1) The
registrant’s code of ethics pursuant to Item 2 of Form N-CSR is filed with the registrant’s annual Form N-CSR.
(b) A certification by the registrant’s principal executive officer and principal
financial officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and required by Rule 30a-2(b) under the Investment Company Act of 1940, is attached.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused
this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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| T. Rowe Price State Tax-Free Funds, Inc. |
|
|
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| By |
|
/s/ David Oestreicher |
|
|
|
|
David Oestreicher |
|
|
|
|
Principal Executive Officer |
|
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|
|
|
| Date |
|
October 18, 2023 |
|
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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 |
|
|
|
|
David Oestreicher |
|
|
|
|
Principal Executive Officer |
|
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|
|
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| Date |
|
October 18, 2023 |
|
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|
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|
|
|
| By |
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/s/ Alan S. Dupski |
|
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Alan S. Dupski |
|
|
|
|
Principal Financial Officer |
|
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| Date |
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October 18, 2023 |
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