-----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, WgAPiLnH2OQjX3gzgvrwpPQXPyXn+sEpoQy3sq4mIYUPTWrs1Kz4RNGvSsFCdpZK gNoBtN7OvhuSUIViHzIkyQ== 0000928816-08-000559.txt : 20080429 0000928816-08-000559.hdr.sgml : 20080429 20080429121024 ACCESSION NUMBER: 0000928816-08-000559 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20080229 FILED AS OF DATE: 20080429 DATE AS OF CHANGE: 20080429 EFFECTIVENESS DATE: 20080429 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PUTNAM ARIZONA TAX EXEMPT INCOME FUND CENTRAL INDEX KEY: 0000869392 IRS NUMBER: 046665534 STATE OF INCORPORATION: MA FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-06258 FILM NUMBER: 08783962 BUSINESS ADDRESS: STREET 1: PUTNAM INVESTMENTS INC STREET 2: ONE POST OFFICE SQUARE MAIL STOP A 14 CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 8002251585 MAIL ADDRESS: STREET 1: 2 LIBERTY SQUARE STREET 2: MAIL STOP L6 CITY: BOSTON STATE: MA ZIP: 02109 0000869392 S000005506 PUTNAM ARIZONA TAX EXEMPT INCOME FUND C000014989 Class M Shares C000014990 Class A Shares PTAZX C000014991 Class B Shares PAZBX C000039832 Class C Shares C000060572 CLASS Y N-Q 1 a_aztaxexemptincome.htm PUTNAM ARIZONA TAX EXEMPT INCOME FUND a_aztaxexemptincome.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- 06258)   
 
Exact name of registrant as specified in charter:  Putnam Arizona 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, 2008     
   
Date of reporting period: February 29, 2008     

Item 1. Schedule of Investments:


Putnam Arizona Tax Exempt Income Fund

The fund's portfolio
2/29/08 (Unaudited)

Key to abbreviations
AMBAC -- AMBAC Indemnity Corporation
Cmnwlth. of PR Gtd. -- Commonwealth of Puerto Rico Guaranteed
COP -- Certificate of Participation
FGIC -- Financial Guaranty Insurance Company
FHA Insd. -- Federal Housing Administration Insured
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

 
MUNICIPAL BONDS AND NOTES (100.9%)(a)       
 
  Rating(RAT)  Principal amount  Value 

 
Arizona (93.4%)       
Apache Cnty., Indl. Dev. Auth. Poll. Control Rev.       
Bonds (Tucson Elec. Pwr. Co.), Ser. A, 5.85s, 3/1/28  Baa3  $500,000  $452,025 
AZ Agricultural Impt. & Pwr. Dist. Elec. Syst. Rev.       
Bonds (Salt River), Ser. B, 5s, 1/1/22  Aa1  1,500,000  1,519,110 
AZ Game & Fish Dept. and Comm. Rev. Bonds (AGF       
Administration Bldg.), 5s, 7/1/21  A3  700,000  672,959 
AZ Hlth. Fac. Auth. FRN       
(Banner Hlth.), Ser. D, FGIC, 7.59s, 1/1/35  AA-  1,075,000  1,075,000 
(Catholic Hlth. Care West), Ser. D, AMBAC, 7.11s,       
7/1/35  Aaa  600,000  600,000 
AZ Hlth. Fac. Auth. Rev. Bonds       
(Bethesda Foundation), Ser. A, 6.4s, 8/15/27  BB-/P  400,000  384,524 
(Banner Hlth.), Ser. A, 5s, 1/1/25  AA-  1,000,000  922,320 
AZ Hlth. Fac. Auth. Hosp. Syst. Rev. Bonds (John C.       
Lincoln Hlth. Network), 7s, 12/1/25 (Prerefunded)  BBB  1,000,000  1,121,950 
AZ State Trans. Board Hwy. Rev. Bonds, Ser. B, 5s,       
7/1/22  AAA  1,000,000  1,010,730 
AZ State U. COP (Research Infrastructure), AMBAC, 5s,       
9/1/30  Aaa  1,000,000  954,530 
AZ State U. Rev. Bonds, FGIC, 5 7/8s, 7/1/25       
(Prerefunded)  AA  500,000  526,700 
AZ Tourism & Sports Auth. Tax Rev. Bonds       
(Multi-Purpose Stadium Fac.), Ser. A, MBIA       
5s, 7/1/31  Aaa  1,500,000  1,428,480 
5s, 7/1/25  Aaa  825,000  802,577 
Casa Grande, Indl. Dev. Auth. Rev. Bonds (Casa Grande       
Regl. Med. Ctr.), Ser. A, 7 1/4s, 12/1/19  B+/P  150,000  154,405 
Chandler, G.O. Bonds, FGIC, 8s, 7/1/10 (SEG)  A  1,450,000  1,608,253 
Chandler, St. & Hwy. User Rev. Bonds, MBIA, 8s, 7/1/11  Aaa  1,100,000  1,261,337 
Chandler, Wtr. & Swr. Rev. Bonds, FGIC, 8s, 7/1/14  AA  2,150,000  2,638,179 
Cochise Cnty., Indl. Dev. Auth. Rev. Bonds (Sierra       
Vista Regl. Hlth. Ctr.), Ser. A, 6.2s, 12/1/21  BB+/P  465,000  457,988 
Gila Cnty., Unified School Dist. G.O. Bonds (No. 10       
Payson 2006 School Impt.), Ser. A, AMBAC,       
stepped-coupon 1s (5 1/4s, 7/1/09), 7/1/27 (STP)  Aaa  1,000,000  902,140 
Glendale, Indl. Dev. Auth. Rev. Bonds       
(Midwestern U.), Ser. A, 5 7/8s, 5/15/31 (Prerefunded)  AAA  1,500,000  1,642,545 
(John C. Lincoln Hlth.), Ser. B, 5 1/4s, 12/1/19  BBB  500,000  490,945 
(Midwestern U.), 5s, 5/15/26  A-  1,200,000  1,090,500 
Glendale, Wtr. & Swr. Rev. Bonds, AMBAC, 5s, 7/1/28  Aaa  1,615,000  1,497,622 
Maricopa Cnty. & Phoenix, Indl. Dev. Auth. Mtge. Rev.       
Bonds (Single Fam.), Ser. A-2, GNMA Coll., FNMA Coll.,       
FHLMC Coll., 5.8s, 7/1/40  Aaa  1,000,000  1,048,950 
Maricopa Cnty., Indl. Dev. Auth. Hlth. Fac. Rev. Bonds       
(Catholic Hlth. Care West), Ser. A, 5 1/4s, 7/1/32  A2  1,000,000  917,920 
Maricopa Cnty., Indl. Dev. Auth. Hosp. Fac. Rev. Bonds       
(Samaritan Hlth. Svcs.), Ser. A, MBIA, U.S. Govt.       
Coll., 7s, 12/1/16 (Prerefunded)  Aaa  3,500,000  4,154,882 
Maricopa Cnty., Poll. Control Rev. Bonds (Public       
Service Co. New Mexico), Ser. A, 6.3s, 12/1/26  Baa2  1,750,000  1,751,908 
Maricopa Cnty., School Dist. G.O. Bonds       
(No. 69 Paradise Valley-Project of 1994), Ser. B,       
MBIA, 7s, 7/1/12  Aaa  2,000,000  2,284,420 
(No. 006 WA Elementary 2004 School Impt.), Ser. A,       
FSA, U.S. Govt. Coll., 5s, 7/1/17 (Prerefunded)  Aaa  320,000  340,934 
(No. 11 Peoria Unified 2003 School Impt.), FGIC, 5s,       
7/1/09 (Prerefunded)  A1  20,000  20,648 
Maricopa Cnty., Unified School Dist. G.O. Bonds (No.       
89 Dysart School Impt. 2006), Ser. B, AMBAC, 5s, 7/1/19  Aaa  1,000,000  1,022,370 
Mesa, Indl. Dev. Auth. Rev. Bonds (Discovery Hlth.       
Syst.), Ser. A, MBIA, 5 3/4s, 1/1/25 (Prerefunded)  Aaa  1,500,000  1,591,440 
Mesa, Util. Syst. Rev. Bonds, FGIC       
7 1/4s, 7/1/12  Aaa  365,000  415,042 
7 1/4s, 7/1/12 (Prerefunded)  Aaa  635,000  733,565 
Mohave Cnty., COP (Mohave Administration Bldg.),       
AMBAC, 5 1/4s, 7/1/19  Aaa  2,000,000  2,046,240 
Northern AZ U. Rev. Bonds, FGIC, 6 1/2s, 6/1/09  A+  1,725,000  1,798,209 
Phoenix & Pima Cnty., Indl. Dev. Auth. Rev. Bonds       
(Single Fam.), Ser. 4, GNMA Coll., FNMA Coll., FHLMC       
Coll., 5.8s, 12/1/39  Aaa  995,000  1,046,014 


Phoenix, G.O. Bonds, Ser. B, 5s, 7/1/27  AAA  1,500,000  1,562,055 
Phoenix, Civic Impt. Corp. Arpt. Rev. Bonds       
(Sr. Lien), Ser. B, FGIC, 5 3/4s, 7/1/19  Aa3  1,000,000  1,027,580 
Ser. A, FSA, 5 1/4s, 7/1/14  Aaa  1,970,000  1,998,585 
Ser. A, FSA, 5 1/4s, 7/1/13  Aaa  1,620,000  1,644,511 
Ser. A, FSA, 5 1/4s, 7/1/11  Aaa  2,010,000  2,042,783 
Phoenix, Civic Impt. Corp. Dist. Rev. Bonds (Civic       
Plaza), Ser. B, FGIC       
zero %, 7/1/43  AA  1,000,000  721,680 
zero %, 7/1/32  AA  1,000,000  732,960 
Phoenix, Civic Impt. Corp. Excise Tax Rev. Bonds, Ser.       
A, MBIA, 4 3/4s, 7/1/26  Aaa  1,415,000  1,285,612 
Phoenix, Civic Impt. Corp. Waste Wtr. Syst. Rev.       
Bonds, MBIA, 5s, 7/1/28  Aaa  1,000,000  971,350 
Phoenix, Hsg. Mtge. Fin. Corp. Rev. Bonds (Section 8       
Assistances), Ser. A, MBIA, FHA Insd., 6.9s, 1/1/23  Aaa  1,020,000  1,010,086 
Phoenix, Indl. Dev. Auth. Govt. Office Lease Rev.       
Bonds (Capitol Mall, LLC II), AMBAC, 5s, 9/15/28  Aaa  1,000,000  920,100 
Pima Cnty., Indl. Dev. Auth. Rev. Bonds (Horizon       
Cmnty. Learning Ctr.), 5.05s, 6/1/25  BBB  125,000  110,015 
Pinal Cnty., COP, 5s, 12/1/26  A  1,000,000  895,680 
Queen Creek, Special Assmt. Bonds (Impt. Dist. No. 001)       
5s, 1/1/26  Baa2  200,000  181,322 
5s, 1/1/17  Baa2  500,000  490,190 
Salt Verde, Fin. Corp. Gas Rev. Bonds, 5s, 12/1/32  Aa3  2,000,000  1,646,400 
Scottsdale, G.O. Bonds (Projects 1999 & 2000), 5s,       
7/1/24  Aaa  510,000  512,596 
Scottsdale, Indl. Dev. Auth. Hosp. FRB (Scottsdale       
Hlth. Care), Ser. F, FSA, 10 1/2s, 9/1/45  Aaa  1,500,000  1,500,000 
Scottsdale, Indl. Dev. Auth. Hosp. Rev. Bonds       
(Scottsdale Hlth. Care)       
5.8s, 12/1/31 (Prerefunded)  A3  500,000  547,655 
5.7s, 12/1/21 (Prerefunded)  A3  1,000,000  1,091,820 
Snowflake, Excise Tax Rev. Bonds, 5s, 7/1/18  A  960,000  959,933 
South Campus Group, LLC Student Hsg. Rev. Bonds (AZ       
State U. South Campus), MBIA       
5 5/8s, 9/1/28  Aaa  1,250,000  1,349,975 
5 5/8s, 9/1/23  Aaa  640,000  660,851 
Tempe, Special Assmt. Bonds (Pier Town Lake Impt.       
Dist.), 5s, 1/1/25  Aa3  1,000,000  945,560 
Tempe, Indl. Dev. Auth. Lease Rev. Bonds (ASU       
Foundation), AMBAC, 5s, 7/1/28  Aaa  2,215,000  2,138,095 
Tempe, Indl. Dev. Auth. Sr. Living Rev. Bonds       
(Friendship Village), Ser. A, 5 3/8s, 12/1/13  BB-/P  200,000  197,602 
Tucson & Pima Cnty., Indl. Dev. Auth. Rev. Bonds       
(Single Fam. Mtge.)       
Ser. 1A, GNMA Coll., 5 1/2s, 1/1/35  AAA  1,225,000  1,235,400 
Ser. B, GNMA Coll., FNMA Coll., FHLMC Coll., 5.35s,       
6/1/47  Aaa  1,000,000  1,011,500 
Tucson, Indl. Dev. Auth. Sr. Living Fac. Rev. Bonds       
(Christian Care), Ser. A, 6s, 7/1/30 (Prerefunded)  AA  1,000,000  1,076,560 
Vistancia, Cmnty. Fac. Dist. G.O. Bonds, 4.4s, 7/15/21  Baa1  1,100,000  937,926 
Yavapai Cnty., Indl. Dev. Auth. Rev. Bonds (Yavapai       
Regl. Med. Ctr.), Ser. A, 6s, 8/1/33  Baa2  1,000,000  972,020 
Yavapai Cnty., Indl. Dev. Auth. Solid Waste Disp. Rev.       
Bonds (Waste Mgmt., Inc.), Ser. A-1, 4.9s, 3/1/28  BBB  500,000  398,515 
      75,164,278 

 
Guam (0.9%)       
Territory of GU, Econ. Dev. & Comm. Auth. Rev. Bonds       
(Tobacco Settlement)       
5 5/8s, 6/1/47  BBB+/F  250,000  235,885 
5 1/4s, 6/1/32  BBB+/F  500,000  472,470 
      708,355 

 
Puerto Rico (5.3%)       
Cmnwlth. of PR, Hwy. & Trans. Auth. Rev. Bonds, Ser.       
X, MBIA, 5 1/2s, 7/1/15  Aaa  400,000  427,264 
Cmnwlth. of PR, Pub. Bldg. Auth. Rev. Bonds (Govt.       
Fac.), Cmnwlth. of PR Gtd.       
Ser. N, 5 1/2s, 7/1/19  Baa3  2,000,000  2,063,100 
Ser. I, 5 1/4s, 7/1/29  Baa3  225,000  215,791 
Ser. I, 5 1/4s, 7/1/29 (Prerefunded)  Baa3  275,000  296,728 
Cmnwlth. of PR, Indl. Tourist Edl. Med. & Env. Control       
Fac. Rev. Bonds (Cogen. Fac.-AES), 6 5/8s, 6/1/26  Baa3  1,000,000  1,040,070 
Cmnwlth. of PR, Sales Tax Fin. Corp. Rev. Bonds, Ser.       
A, FGIC, zero %, 8/1/41  A1  1,500,000  198,930 
      4,241,883 

 
Virgin Islands (1.3%)       
VI Pub. Fin. Auth. Rev. Bonds (Hovensa Refinery Fac.),       
4.7s, 7/1/22  BBB  400,000  339,492 
VI Tobacco Settlement Fin. Corp. Rev. Bonds, 5s,       
5/15/31  Baa3  845,000  745,603 
      1,085,095 
 
 
TOTAL INVESTMENTS       

 
Total investments (cost $81,753,768) (b)      $81,199,611 


FUTURES CONTRACTS OUTSTANDING at 2/29/08 (Unaudited)     
 
  Number of    Expiration  Unrealized 
  contracts  Value    date  appreciation 

U.S. Treasury Note 10 yr (Long)  14  $1,641,938  Jun-08  $35,271 


INTEREST RATE SWAP CONTRACTS OUTSTANDING at 2/29/08 (Unaudited)     
    Payments  Payments   
Swap counterparty /  Termination  made by  received by  Unrealized 
Notional amount  date  fund per annum  fund per annum  depreciation 

Goldman Sachs International         
    USD-SIFMA Municipal Swap     
$550,000   (E) 5/15/28  Index  3.664%  $(13,943) 

(E) See Interest rate swap contracts note regarding extended effective dates.


TOTAL RETURN SWAP CONTRACTS OUTSTANDING at 2/29/08 (Unaudited)     
      Fixed payments  Total return   
Swap counterparty /    Termination  received (paid) by  received by  Unrealized 
Notional amount    date  fund per annum  or paid by fund  depreciation 

Citibank, N.A.           
$400,000  (F)  5/14/08  -  4.121% minus  $(54,625) 
        Municipal Market   
        Data Index AAA   
        municipal yields   
        20 Year rate   

400,000  (F)  5/15/08  -  4.121% minus  (54,625) 
        Municipal Market   
        Data Index AAA   
        municipal yields   
        20 Year rate   

400,000  (F)  5/19/08  -  4.121% minus  (54,625) 
        Municipal Market   
        Data Index AAA   
        municipal yields   
        20 Year rate   

Lehman Brothers Special Financing, Inc.         
1,500,000  (F)  4/15/08  -  4.09% minus  (224,221) 
        Municipal Market   
        Data Index AAA   
        municipal yields   
        10 Year rate   

 
Total          $(388,096) 

(F) Is valued at fair value following procedures approved by the Trustees.


NOTES

(a) Percentages indicated are based on net assets of $80,500,622.

(RAT) The Moody's or Standard & Poor's ratings indicated are believed to be the most recent ratings available at February 29, 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 February 29, 2008. Securities rated by Putnam are indicated by "/P." Securities rated by Fitch are indicated by "/F." Security ratings are defined in the Statement of Additional Information.

(b) The aggregate identified cost on a tax basis is $81,753,768, resulting in gross unrealized appreciation and depreciation of $2,319,535 and $2,873,692, respectively, or net unrealized depreciation of $554,157.

(STP) The interest rate and date shown parenthetically represent the new interest rate to be paid and the date the fund will begin accruing interest at this rate.

(SEG) A portion of this security was pledged and segregated with the custodian to cover margin requirements for futures contracts at February 29, 2008.

At February 29, 2008, liquid assets totaling $2,030,033 have been designated as collateral for open swap contracts and futures contracts.

The rates shown on FRB and FRN are the current interest rates at February 29, 2008.

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

The fund had the following sector concentrations greater than 10% at February 29, 2008 (as a percentage of net assets):

Health care  21.4% 
Local government  19.6 
Utilities  13.7 
Education  10.1 

The fund had the following insurance concentrations greater than 10% at February 29, 2008 (as a percentage of net assets):

MBIA  21.4% 
FGIC  14.3 
AMBAC  12.5 

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. Futures and written option contracts outstanding at period end, if any, are listed after the fund’s portfolio.

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. Income 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 the 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. Risk of loss may exceed amounts recognized on the statement of assets and liabilities. Total return swap contracts outstanding at period end, if any, are listed after the fund’s portfolio.


Interest rate swap contracts The fund may enter into interest rate swap contracts, which are arrangements between two parties to exchange cash flows based on a notional principal amount, to manage the fund’s exposure to interest rates. Interest rate swap contracts are marked-to-market daily based upon quotations from an independent pricing service or market makers and the change, if any, is recorded as unrealized gain or loss. Payments received or made are recorded as realized gains or loss. Certain interest rate swap contracts may include extended effective dates. Income 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 the fluctuation of interest rates or if the counterparty defaults on its obligation to perform. Risk of loss may exceed amounts recognized on the statement of assets and liabilities. Interest rate swap contracts outstanding at period end, if any, are listed after the fund’s portfolio.

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 Arizona Tax Exempt Income Fund

By (Signature and Title):

/s/ Janet C. Smith
Janet C. Smith
Principal Accounting Officer
Date: April 29, 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: April 29, 2008

By (Signature and Title):

/s/ Steven D. Krichmar
Steven D. Krichmar
Principal Financial Officer
Date: April 29, 2008


EX-99.CERT 2 b_aztaxexemptcert.htm EX-99.CERT b_aztaxexemptcert.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: April 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: April 28, 2008
Steven D. Krichmar
Principal Financial Officer


 
  Attachment A   
  NQ   
  Period (s) ended February 29, 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 


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