BLACKROCK INVESTMENT QUALITY MUNICIPAL TRUST, INC.

N-CSR 1 c50637_ncsr.htm

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 811-07354

Name of Fund: BlackRock Investment Quality Municipal Trust, Inc. (BKN)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Donald C. Burke, Chief Executive Officer, BlackRock Investment Quality Municipal Trust, Inc., 800 Scudders Mill Road, Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011, Princeton, NJ, 08543-9011

Registrants telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 10/31/2007 Date of reporting period: 11/01/2006 10/31/2007

Item 1 Report to Stockholders

EQUITIES FIXED INCOME REAL ESTATE LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS

Closed-End Funds
ANNUAL REPORT \| OCTOBER 31, 2007

BlackRock Investment Quality Municipal Trust (BKN)
BlackRock Municipal Income Trust (BFK)
BlackRock Long-Term Municipal Advantage Trust (BTA)
BlackRock California Investment Quality Municipal Trust (RAA)
BlackRock California Municipal Income Trust (BFZ)
BlackRock Florida Investment Quality Municipal Trust (RFA)
BlackRock Florida Municipal Income Trust (BBF)
BlackRock New Jersey Investment Quality Municipal Trust (RNJ)
BlackRock New Jersey Municipal Income Trust (BNJ)
BlackRock New York Investment Quality Municipal Trust (RNY)
BlackRock New York Municipal Income Trust (BNY)

| NOT
FDIC INSURED |
| --- |
| MAY
LOSE VALUE |
| NO
BANK GUARANTEE |

| Table
of Contents | Page |
| --- | --- |
| A
Letter to Shareholders | 1 |
| Annual Report: | |
| Trust
Summaries | 2 |
| Financial
Statements: | |
| Portfolio of
Investments | 13 |
| Statements of Assets
and Liabilities | 36 |
| Statements of
Operations | 38 |
| Statements of
Changes in Net Assets | 40 |
| Statement of Cash
Flows | 42 |
| Financial
Highlights | 43 |
| Notes
to Financial Statements | 54 |
| Report
of Independent Registered Public Accounting Firm | 61 |
| The
Benefits and Risks of Leveraging | 62 |
| Dividend
Reinvestment Plans | 63 |
| BlackRock
Privacy Principles | 63 |
| Additional
Information | 64 |
| Section
19 Notices | 67 |
| Trustees
Information | 68 |

A Letter to Shareholders

THIS PAGE NOT PART OF YOUR FUND REPORT

Dear Shareholder

The October reporting period was fairly tumultuous for financial markets, but culminated in positive performance for most major benchmarks:

Total returns as of October 31, 2007

	6-month	12-month
U.S. equities
(S&P 500 Index)	+5.49%	+14.56%
Small cap U.S.
equities (Russell 2000 Index)	+2.25%	+9.27%
International
equities (MSCI Europe, Australasia, Far East Index)	+8.19%	+24.91%
Fixed income
(Lehman Brothers U.S. Aggregate Bond Index)	+2.68%	+5.38%
Tax-exempt fixed
income (Lehman Brothers Municipal Bond Index)	+1.30%	+2.91%
High yield bonds
(Lehman Brothers U.S. Corporate High Yield 2% Issuer Cap Index)	-0.07%	+6.89%

Past performance is no guarantee of future results. Index performance shown for illustrative purposes only. You cannot invest directly in an index.

Subprime mortgage woes dominated headlines for much of 2007, but intensified in the summer and fall, spawning a widespread liquidity and credit crisis with ramifications across global markets. The Federal Reserve Board (Fed) and other countries central banks stepped in to inject liquidity into the markets and bolster investor confidence. The Fed cut the federal funds rate by 0.50% in September and another 0.25% on the final day of the reporting period, bringing its target rate to 4.50%. In taking action, the central bankers, who had long deemed themselves inflation fighters, were seeking to stem the fallout from the credit crunch and forestall a wider economic unraveling. By period-end, the Fed had cited the risks between slower economic growth and faster inflation as equally balanced.

Amid the volatility throughout the past year, equity markets have displayed surprising resilience. Most recently, the credit turmoil dampened corporate merger-and-acquisition (M&A) activity, a key source of strength for equity markets. Still, market fundamentals have held firm, dividend payouts and share buybacks have continued to grow, and valuations remain attractive. These tailwinds generally have prevailed over the headwinds created by the slowing U.S. economy, troubled housing market and, recently, a more difficult corporate earnings backdrop. International markets fared even better than U.S. equities, benefiting from robust M&A activity and generally stronger economies.

In fixed income markets, mixed economic signals and the credit woes resulted in a flight to quality. At the height of the uncertainty, investors shunned bonds associated with the housing and credit markets in favor of higher-quality Treasury issues. The yield on 10-year Treasury issues, which touched 5.30% in June (its highest level in five years), fell to 4.48% by period-end, while prices correspondingly rose. The tax-exempt bond market has been challenged by a combination of record-setting supply year-to-date, economic uncertainty and concerns around the credit worthiness of bond insurers. This has brought municipal bond prices to relatively attractive levels and, as such, demand generally has remained firm.

As you navigate market volatility, we encourage you to review your investment goals with your financial professional and to make portfolio changes, as needed. For more market insight and commentary from BlackRock investment professionals, we invite you to visit www.blackrock.com/funds. As always, we thank you for entrusting BlackRock with your investment assets, and we look forward to continuing to serve you in the months and years ahead.

Sincerely,

●	●
Robert
C. Doll, Jr.	Peter J. Hayes
Vice
Chairman, BlackRock, Inc.	Managing
Director, BlackRock, Inc.

Trust Summary as of October 31, 2007 BlackRock Investment Quality Municipal Trust (BKN)

Investment Objective

The Trusts investment objective is to provide high current income which, in the opinion of bond counsel to the issuer, is exempt from regular Federal income tax consistent with the preservation of capital.

Trust Information

| Symbol on New York
Stock Exchange: | BKN |
| --- | --- |
| Initial Offering
Date: | February 19, 1993 |
| Yield on Closing
Market Price as of October 31, 2007 ($16.35): 1 | 6.06% |
| Tax Equivalent
Yield 2 | 9.32% |
| Current Monthly
Distribution per Common Share: 3 | $0.0825 |
| Current Annualized
Distribution per Common Share: 3 | $0.9900 |
| Leverage as of
October 31, 2007: 4 | 37% |

| 1 | Yield on closing market price is calculated by dividing
the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results. |
| --- | --- |
| 2 | Tax equivalent yield assumes the maximum Federal tax rate
of 35%. |
| 3 | A change in the distribution rate was declared on December
5, 2007. The Monthly Distribution per Common Share decreased to $0.0800. The
Yield on Closing Market Price, Current Monthly Distribution and Current
Annualized Distribution do not reflect the new distribution rate. The new
distribution rate is not constant and is subject to further change in the
future. |
| 4 | As a percentage of managed assets (as defined in Note 3 of
the Notes to Financial Statements). |

| The table below summarizes the changes in the Trusts market price
and net asset value per share: | 10/31/07 | 10/31/06 | Change | High | Low |
| --- | --- | --- | --- | --- | --- |
| Market Price | $16.35 | $18.97 | (13.81)% | $19.90 | $13.99 |
| Net Asset Value | $14.73 | $15.79 | (6.71)% | $15.96 | $14.22 |

The following unaudited charts show the portfolio composition and credit quality allocations of the Trusts long-term investments:

Portfolio Composition

Sector	10/31/07	10/31/06
City, County &
State	21 %	23 %
Hospitals	16	13
Industrial &
Pollution Control	11	14
Power	10	10
Housing	9	6
Transportation	9	8
Education	8	9
Lease Revenue	6	6
Tax Revenue	5	4
Water & Sewer	3	5
Tobacco	2	2

Credit Quality Allocations 5

Credit Rating	10/31/07	10/31/06
AAA/Aaa	49 %	51 %
AA/Aa	17	13
A	8	6
BBB/Baa	14	16
BB/Ba	3	4
B	2	2
Not Rated	7 6	8

| 5 | Using the highest of Standard
& Poors (S&Ps), Moodys Investors Service (Moodys) or Fitch
Ratings (Fitchs) ratings. |
| --- | --- |
| 6 | The investment advisor has deemed
certain of these non-rated securities to be of investment grade quality. As
of October 31, 2007, the market value of these securities was $6,340,657
representing 2% of the Trusts long-term investments. |

2 ANNUAL REPORT OCTOBER 31, 2007

| Trust
Summary as of October 31, 2007 |
| --- |
| Investment Objective |

The Trusts investment objective is to provide current income which, in the opinion of bond counsel to the issuer, is exempt from regular Federal income tax.

Trust Information

| Symbol on New York
Stock Exchange: | BFK |
| --- | --- |
| Initial Offering
Date: | July 27, 2001 |
| Yield on Closing
Market Price as of October 31, 2007 ($15.92): 1 | 6.03% |
| Tax Equivalent
Yield 2 | 9.28% |
| Current Monthly
Distribution per Common Share: 3 | $0.0800 |
| Current Annualized
Distribution per Common Share: 3 | $0.9600 |
| Leverage as of
October 31, 2007: 4 | 37% |

| 1 | Yield on closing market price is calculated by dividing
the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results. |
| --- | --- |
| 2 | Tax equivalent yield assumes the maximum Federal tax rate
of 35%. |
| 3 | A change in the distribution rate was declared on December
5, 2007. The Monthly Distribution per Common Share was decreased to
$0.077500. The Yield on Closing Market Price, Current Monthly Distribution
and Current Annualized Distribution do not reflect the new distribution rate.
The new distribution rate is not constant and is subject to further change in
the future. |
| 4 | As a percentage of managed assets (as defined in Note 3 of
the Notes to Financial Statements). |

| The table below summarizes the changes in the Trusts market price
and net asset value per share: | 10/31/07 | 10/31/06 | Change | | High | Low |
| --- | --- | --- | --- | --- | --- | --- |
| Market Price | $15.92 | $17.30 | (7.98 | )% | $18.74 | $13.92 |
| Net Asset Value | $14.55 | $15.37 | (5.34 | )% | $15.55 | $14.08 |

The following unaudited charts show the Trusts portfolio composition and credit quality allocations of the Trusts long-term investments:

Portfolio Composition

Sector	10/31/07	10/31/06
Hospitals	24 %	21 %
Industrial &
Pollution Control	17	22
City, County &
State	10	11
Transportation	10	9
Housing	8	8
Power	8	7
Education	8	8
Tobacco	5	4
Tax Revenue	5	5
Lease Revenue	3	2
Water & Sewer	2	3

Credit Quality Allocations 5

Credit Rating	10/31/07	10/31/06
AAA/Aaa	33 %	30 %
AA/Aa	13	9
A	21	21
BBB/Baa	18	21
BB/Ba	4	5
B	6	7
Not Rated	5 6	7

| 5 | Using the highest of S&Ps, Moodys or Fitchs
ratings. |
| --- | --- |
| 6 | The investment advisor has deemed certain of these
non-rated securities to be of investment grade quality. As of October 31,
2007, the market value of these securities was $12,328,689 representing 1% of
the Trusts long-term investments. |

ANNUAL REPORT OCTOBER 31, 2007 3

| Trust
Summary as of October 31, 2007 |
| --- |
| Investment Objective |

The Trusts investment objective is to provide current income which, in the opinion of bond counsel to the issuer, is exempt from regular Federal income tax.

Trust Information

| Symbol on New York
Stock Exchange: | BTA |
| --- | --- |
| Initial Offering
Date: | February 28, 2006 |
| Yield on Closing
Market Price as of October 31, 2007 ($12.14): 1 | 5.44% |
| Tax Equivalent
Yield 2 | 8.37% |
| Current Monthly
Distribution per Common Share: 3 | $0.0550 |
| Current Annualized
Distribution per Common Share: 3 | $0.6600 |

| The table below
summarizes the changes in the Trusts market price and net asset value per
share: | 10/31/07 | 10/31/06 | Change | | High | Low |
| --- | --- | --- | --- | --- | --- | --- |
| Market Price | $12.14 | $14.70 | (17.41 | )% | $15.30 | $11.41 |
| Net Asset Value | $13.72 | $14.89 | (7.86 | )% | $15.22 | $12.78 |

The following unaudited charts show the portfolio composition and credit quality allocations of the Trusts long-term investments:

Portfolio Composition

Sector	10/31/07	10/31/06
Education	21 %	24 %
Hospital	19	12
Housing	11	1
Tobacco	9	14
Transportation	9	13
Water & Sewer	9	10
Industrial &
Pollution Control	8	14
Power	6	4
Lease Revenue	4	4
City, County &
State	3	4
Tax Revenue	1

Credit Quality Allocations 4

Credit Rating	10/31/07	10/31/06
AAA/Aaa	36 %	33 %
AA/Aa	32	21
A	3	4
BBB/Baa	17	33
BB/Ba	1
B	3	2
Not Rated 5	8	7

| 4 | Using the highest of S&Ps, Moodys or Fitchs
ratings. |
| --- | --- |
| 5 | The investment advisor has deemed certain of these
non-rated securities to be of investment grade quality. As of October 31,
2007 and October 31, 2006, the market value of these securities was
$6,660,850 representing 2% and $7,110,320 representing 4%, respectively, of
the Trusts long-term investments. |

4 ANNUAL REPORT OCTOBER 31, 2007

Trust Summary as of October 31, 2007 BlackRock California Investment Quality Municipal Trust (RAA)

Investment Objective

The Trusts investment objective is to provide high current income which, in the opinion of bond counsel to the issuer, is exempt from regular Federal and California income tax consistent with preservation of capital.

Trust Information

| Symbol on American
Stock Exchange: | RAA |
| --- | --- |
| Initial Offering
Date: | May 28, 1993 |
| Yield on Closing
Market Price as of October 31, 2007 ($12.57): 1 | 4.58% |
| Tax Equivalent
Yield 2 | 7.05% |
| Current Monthly
Distribution per Common Share: 3 | $ 0.0480 |
| Current Annualized
Distribution per Common Share: 3 | $ 0.5760 |
| Leverage as of
October 31, 2007: 4 | 35% |

	10/31/07	10/31/06	Change		High	Low
Market Price	$ 12.57	$ 15.80	(20.44	)%	$ 16.65	$ 12.14
Net Asset Value	$ 13.86	$ 14.51	(4.48	)%	$ 14.68	$ 13.33
The following
unaudited charts show the Trusts portfolio composition and credit quality
allocations of the Trusts long-term investments:

Portfolio Composition

Sector	10/31/07	10/31/06
City, County &
State	27 %	26 %
Education	15	16
Tobacco	11	10
Industrial &
Pollution Control	10	13
Hospitals	10	7
Power	6	3
Water & Sewer	6	5
Housing	5	2
Lease Revenue	4	4
Transportation	3	14
Resource Recovery	3

Credit Quality Allocations 5

Credit Rating	10/31/07	10/31/06
AAA/Aaa	50 %	62 %
AA/Aa	2
A	24	14
BBB/Baa	14	7
B	5	6
Not Rated	5	11

5 Using the highest of S&Ps, Moodys or Fitchs ratings.

ANNUAL REPORT OCTOBER 31, 2007 5

Trust Summary as of October 31, 2007 BlackRock California Municipal Income Trust (BFZ)

Investment Objective

The Trusts investment objective is to provide current income which, in the opinion of bond counsel to the issuer, is exempt from regular Federal income tax and California income taxes.

Trust Information

| Symbol on New York
Stock Exchange: | BFZ |
| --- | --- |
| Initial Offering
Date: | July 27, 2001 |
| Yield on Closing
Market Price as of October 31, 2007 ($15.82): 1 | 5.77% |
| Tax Equivalent
Yield 2 | 8.88% |
| Current Monthly
Distribution per Common Share: 3 | $ 0.076074 |
| Current Annualized
Distribution per Common Share: 3 | $ 0.912888 |
| Leverage as of
October 31, 2007: 4 | 37% |

	10/31/07	10/31/06	Change		High	Low
Market Price	$ 15.82	$ 17.12	(7.59	)%	$ 18.19	$ 14.01
Net Asset Value	$ 14.97	$ 15.74	(4.89	)%	$ 15.85	$ 14.51
The following
unaudited charts show the Trusts portfolio composition and credit quality
allocations of the Trusts long-term investments:

Portfolio Composition

Sector	10/31/07	10/31/06
City, County &
State	23 %	22 %
Hospitals	15	13
Education	12	12
Housing	11	11
Transportation	9	14
Lease Revenue	7	9
Power	7	7
Tobacco	7	7
Industrial &
Pollution Control	6	5
Water & Sewer	2
Resource Recovery	1

Credit Quality Allocations 5

Credit Rating	10/31/07	10/31/06
AAA/Aaa	44 %	49 %
AA/Aa	3	3
A	30	26
BBB/Baa	13	12
B	1	1
Not Rated	9	9

5 Using the highest of S&Ps, Moodys or Fitchs ratings.

6 ANNUAL REPORT OCTOBER 31, 2007

Trust Summary as of October 31, 2007 BlackRock Florida Investment Quality Municipal Trust (RFA)

Investment Objective

The Trusts investment objective is to provide high current income which, in the opinion of bond counsel to the issuer, is exempt from regular Federal income tax and to provide an exemption from Florida intangible personal property taxes consistent with preservation of capital.

Trust Information

| Symbol on American
Stock Exchange: | RFA |
| --- | --- |
| Initial Offering
Date: | May 28, 1993 |
| Yield on Closing
Market Price as of October 31, 2007 ($11.86): 1 | 4.86% |
| Tax Equivalent
Yield 2 | 7.48% |
| Current Monthly
Distribution per Common Share: 3 | $ 0.0480 |
| Current Annualized
Distribution per Common Share: 3 | $ 0.5760 |
| Leverage as of
October 31, 2007: 4 | 36% |

| 1 | Yield on closing market price is calculated by dividing
the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results. |
| --- | --- |
| 2 | Tax equivalent yield assumes the maximum Federal tax rate
of 35%. |
| 3 | A change in the distribution rate was declared on December
5, 2007. The Monthly Distribution per Common Share decreased to $0.044500.
The Yield on Closing Market Price, Current Monthly Distribution and Current
Annualized Distribution do not reflect the new distribution rate. The new
distribution rate is not constant and is subject to further change in the
future. |
| 4 | As a percentage of managed assets (as defined in Note 3 of
the Notes to Financial Statements). |
| The table below
summarizes the changes in the Trusts market price and net asset value per
share: | |

Market Price	10/31/07 — $ 11.86	10/31/06 — $ 16.00	(25.88%	)	High — $ 16.00	Low — $ 11.33
Net Asset Value	$ 13.43	$ 14.24	(5.69%	)	$ 14.40	$ 12.93
The following
unaudited charts show the Trusts portfolio composition and credit quality
allocations of the Trusts long-term investments:

Portfolio Composition

Sector	10/31/07	10/31/06
Hospitals	23 %	24 %
City, County &
State	15	18
Water & Sewer	13	22
Education	13	5
Housing	11
Lease Revenue	10	10
Tax Revenue	9	8
Transportation	3	6
Industrial &
Pollution Control	2	7
Power	1

Credit Quality Allocations 5

Credit Rating	10/31/07	10/31/06
AAA/Aaa	62 %	64 %
AA/Aa	10	5
A	5	8
BBB/Baa	9	8
BB/Ba	2	3
Not Rated	12	12

5 Using the highest of S&Ps, Moodys or Fitchs ratings.

ANNUAL REPORT OCTOBER 31, 2007 7

Trust Summary as of October 31, 2007 BlackRock Florida Municipal Income Trust (BBF)

Investment Objective

The Trusts investment objective is to provide current income which, in the opinion of bond counsel to the issuer, is exempt from regular Federal income tax and Florida intangible personal property tax.

Trust Information

| Symbol on New York
Stock Exchange: | BBF |
| --- | --- |
| Initial Offering
Date: | July 27, 2001 |
| Yield on Closing
Market Price as of October 31, 2007 ($15.10): 1 | 5.99% |
| Tax Equivalent
Yield 2 | 9.22% |
| Current Monthly
Distribution per Common Share: 3 | $0.075375 |
| Current Annualized
Distribution per Common Share: 3 | $0.904500 |
| Leverage as of
October 31, 2007: 4 | 36% |

| 1 | Yield on closing market price is calculated by dividing
the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results. |
| --- | --- |
| 2 | Tax equivalent yield assumes the maximum Federal tax rate
of 35%. |
| 3 | A change in the distribution rate was declared on December
5, 2007. The Monthly Distribution per Common Share decreased to $0.072875.
The Yield on Closing Market Price, Current Monthly Distribution and Current
Annualized Distribution do not reflect the new distribution rate. The new
distribution rate is not constant and is subject to further change in the
future. |
| 4 | As a percentage of managed assets (as defined in Note 3 of
the Notes to Financial Statements). |

The table below summarizes the changes in the Trusts market price and net asset value per share:

Market Price	10/31/07 — $ 15.10	10/31/06 — $ 16.30	(7.36	)%	High — $ 17.11	Low — $ 13.81
Net Asset Value	$ 15.05	$ 15.68	(4.02	)%	$ 15.76	$ 14.64

The following unaudited charts show the Trusts portfolio composition and credit quality allocations of the Trusts long-term investments:

Portfolio Composition

Sector — Hospitals	31 %	21 %
City, County &
State	28	34
Water & Sewer	11	9
Education	9	7
Tax Revenue	8	7
Lease Revenue	5	6
Transportation	3	3
Housing	3	3
Power	1	4
Industrial &
Pollution Control	1	2
Tobacco		4

Credit Quality Allocations 5

Credit Rating		10/31/06
AAA/Aaa	45 %	39 %
AA/Aa	25	29
A	3	6
BBB/Baa	8	10
BB/Ba	2	2
Not Rated 6	17	14

| 5 | Using the highest of S&Ps, Moodys or Fitchs
ratings. |
| --- | --- |
| 6 | The investment advisor has deemed certain of these
non-rated securities to be of investment grade quality. As of October 31,
2007 and October 31, 2006, the market value of these securities was $1,562,493
representing 1% and $3,384,402 representing 2%, respectively, of the Trusts
long-term investments. |

8 ANNUAL REPORT OCTOBER 31, 2007

Trust Summary as of October 31, 2007 BlackRock New Jersey Investment Quality Municipal Trust (RNJ)

Investment Objective

The Trusts investment objective is to provide high current income which, in the opinion of bond counsel to the issuer, is exempt from regular Federal income tax and New Jersey gross income tax consistent with preservation of capital.

Trust Information

| Symbol on American
Stock Exchange: | RNJ |
| --- | --- |
| Initial Offering
Date: | May 28, 1993 |
| Yield on Closing
Market Price as of October 31, 2007 ($14.96): 1 | 5.45% |
| Tax Equivalent
Yield 2 | 8.38% |
| Current Monthly
Distribution per Common Share: 3 | $0.0680 |
| Current Annualized
Distribution per Common Share: 3 | $0.8160 |
| Leverage as of
October 31, 2007: 4 | 35% |

The table below summarizes the changes in the Trusts market price and net asset value per share:

Market Price	10/31/07 — $ 14.96	10/31/06 — $ 15.95	(6.21	)%	High — $ 18.85	Low — $ 14.20
Net Asset Value	$ 13.57	$ 14.47	(6.22	)%	$ 14.61	$ 13.08

The following unaudited charts show the portfolio composition and credit quality allocations of the Trusts long-term investments:

Portfolio Composition

Sector	10/31/07	10/31/06
Transportation	20 %	23 %
Hospitals	19	15
Housing	11	13
Tax Revenue	10	10
Education	10	11
Industrial &
Pollution Control	8	10
Water & Sewer	7	5
City, County &
State	6	3
Tobacco	4	5
Power	3	2
Lease Revenue	2	3

Credit Quality Allocations 5

Credit Rating	10/31/07	10/31/06
AAA/Aaa	49 %	41 %
AA/Aa	3	3
A	11	6
BBB/Baa	29	33
B	5	6
Not Rated	3	11

5 Using the highest of S&Ps, Moodys or Fitchs ratings.

ANNUAL REPORT OCTOBER 31, 2007 9

Trust Summary as of October 31, 2007 BlackRock New Jersey Municipal Income Trust (BNJ)

Investment Objective

The Trusts investment objective is to provide current income which, in the opinion of bond counsel to the issuer, is exempt from regular Federal income tax and New Jersey gross income tax.

Trust Information

| Symbol on New York
Stock Exchange: | BNJ |
| --- | --- |
| Initial Offering
Date: | July 27, 2001 |
| Yield on Closing
Market Price as of October 31, 2007 ($16.90): 1 | 5.65% |
| Tax Equivalent
Yield 2 | 8.69% |
| Current Monthly
Distribution per Common Share: 3 | $0.079625 |
| Current Annualized
Distribution per Common Share: 3 | $0.955500 |
| Leverage as of
October 31, 2007: 4 | 35% |

The table below summarizes the changes in the Trusts market price and net asset value per share:

Market Price	10/31/07 — $ 16.90	10/31/06 — $ 18.40	(8.15	)%	High — $ 19.70	Low — $ 15.53
Net Asset Value	$ 15.49	$ 16.35	(5.26	)%	$ 16.46	$ 15.02

The following unaudited charts show the portfolio composition and credit quality allocations of the Trusts long-term investments:

Portfolio Composition

Sector	10/31/07	10/31/06
Hospitals	26 %	24 %
Housing	19	20
City, County &
State	10	11
Transportation	9	10
Education	8	5
Tobacco	8	8
Tax Revenue	7	6
Industrial &
Pollution Control	6	6
Lease Revenue	5	10
Water & Sewer	1
Power	1

Credit Quality Allocations 5

Credit Rating	10/31/07	10/31/06
AAA/Aaa	40 %	32 %
A	27	22
BBB/Baa	27	39
B	3	3
Not Rated	3	4

5 Using the highest of S&Ps, Moodys or Fitchs ratings.

10 ANNUAL REPORT OCTOBER 31, 2007

| Trust Summary as of
October 31, 2007 |
| --- |
| Investment
Objective |

The Trusts investment objective is to provide high current income which, in the opinion of bond counsel to the issuer, is exempt from regular Federal, State and City income tax consistent with preservation of capital.

Trust Information

| Symbol on American Stock
Exchange: | RNY |
| --- | --- |
| Initial Offering Date: | May 28, 1993 |
| Yield on Closing Market Price as
of October 31, 2007 ($15.39): 1 | 5.46% |
| Tax Equivalent Yield 2 | 8.40% |
| Current Monthly Distribution per
Common Share: 3 | $ 0.0700 |
| Current Annualized Distribution
per Common Share: 3 | $ 0.8400 |
| Leverage as of October 31, 2007: 4 | 34% |

| 1 | Yield on closing market price is calculated by dividing
the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results. |
| --- | --- |
| 2 | Tax equivalent yield assumes the maximum Federal tax rate
of 35%. |
| 3 | A change in the distribution rate was declared on December
5, 2007. The Monthly Distribution per Common Share was decreased to $0.0670.
The Yield on Closing Market Price, Current Monthly Distribution and Current
Annualized Distribution do not reflect the new distribution rate. The new
distribution rate is not constant and is subject to further change in the
future. |
| 4 | As a percentage of managed assets (as defined in Note 3 of
the Notes to Financial Statements). |
| The table below summarizes the
changes in the Trusts market price and net asset value per share: | |

	10/31/07	10/31/06	Change		High	Low
Market Price	$ 15.39	$ 16.65	(7.57	)%	$ 19.00	$ 13.91
Net Asset Value	$ 14.40	$ 15.18	(5.14	)%	$ 15.32	$ 13.98
The following unaudited charts
show the portfolio composition and credit quality allocations of the Trusts
long-term investments:

Portfolio Composition

Sector	10/31/07	10/31/06
Education	23 %	24 %
Tax Revenue	16	15
Water & Sewer	13	11
City, County & State	12	12
Housing	12	8
Industrial & Pollution
Control	10	14
Transportation	5	4
Hospitals	4	4
Lease Revenue	3	6
Tobacco	2	2

Credit Quality Allocations 5

Credit Rating	10/31/07	10/31/06
AAA/Aaa	50 %	46 %
AA/Aa	23	29
A	5	4
BBB/Baa	12	12
B	9	6
Caa		3
Not Rated	1

5 Using the highest of S&Ps, Moodys or Fitchs ratings.

ANNUAL REPORT OCTOBER 31, 2007 11

| Trust Summary as of
October 31, 2007 |
| --- |
| Investment
Objective |

The Trusts investment objective is to provide current income which, in the opinion of bond counsel to the issuer, is exempt from regular Federal income tax and New York State and New York City personal income taxes.

Trust Information

| Symbol on New York Stock
Exchange: | BNY |
| --- | --- |
| Initial Offering Date: | July 27, 2001 |
| Yield on Closing Market Price as
of October 31, 2007 ($15.55): 1 | 5.81% |
| Tax Equivalent Yield 2 | 8.94% |
| Current Monthly Distribution per
Common Share: 3 | $ 0.075339 |
| Current Annualized Distribution
per Common Share: 3 | $ 0.904068 |
| Leverage as of October 31, 2007: 4 | 37% |

	10/31/07	10/31/06	Change		High	Low
Market Price	$ 15.55	$ 17.35	(10.37	)%	$ 18.00	$ 14.81
Net Asset Value	$ 15.11	$ 15.88	(4.85	)%	$ 15.99	$ 14.66
The following unaudited charts
show the portfolio composition and credit quality allocations of the Trusts
long-term investments:

Portfolio Composition

Sector	10/31/07	10/31/06
Industrial & Pollution
Control	16 %	19 %
Housing	15	15
Transportation	14	13
Education	12	10
City, County & State	11	7
Tobacco	8	12
Lease Revenue	7	9
Water & Sewer	7	6
Hospitals	5	6
Power	3	2
Tax Revenue	2	1

Credit Quality Allocations 5

Credit Rating	10/31/07	10/31/06
AAA/Aaa	42 %	37 %
AA/Aa	17	21
A	17	15
BBB/Baa	17	20
B	6	4
CCC/Caa		3
Not Rated	1

5 Using the highest of S&Ps, Moodys or Fitchs ratings.

12 ANNUAL REPORT OCTOBER 31, 2007

| Portfolio of
Investments as of October 31, 2007 |
| --- |
| (Percentages shown are based on Net Assets) |

Principal Amount (000)		Description	Value
LONG-TERM
INVESTMENTS156.0%
Alabama7.3%
		Birmingham
Spl. Care Facs. Fing. Auth., Hlth., Hosp. & Nursing Home RB, Ascension Hlth. Proj.,
$ 1,765	1	Ser. C-2,
5.00%, 11/15/36	$ 1,772,607
1,265		Ser. C-2,
5.00%, 11/15/39	1,269,175
14,000	2	Univ. of
Alabama Hosp., Hlth., Hosp. & Nursing Home Impvts. RB, Ser. A, 5.875%, 9/01/10, MBIA	15,036,420
			18,078,202
Arizona4.5%
		Salt Verde
Financial Corp., Nat. Gas Util. Impvts. RB,
3,990		5.00%,
12/01/32	3,851,627
5,585		5.00%,
12/01/37	5,342,220
		San Luis
Fac. Dev. Corp., Correctional Fac. Impvts. Misc. RB, Regl. Detention Ctr. Proj.,
490		6.25%,
5/01/15	487,026
490		7.00%,
5/01/20	484,747
980		7.25%,
5/01/27	974,747
			11,140,367
California25.1%
		California
GO,
5,800		5.00%,
2/01/32	5,862,176
3,485		5.00%,
6/01/34	3,523,370
1,595	2	5.625%,
5/01/10	1,695,214
290		5.625%,
5/01/18	305,008
		Cnty.
Tobacco Sec. Agcy., Tobacco Settlement Funded RB,
1,340		Ser. B,
Zero Coupon, 6/01/46	97,083
7,090		Ser. C,
Zero Coupon, 6/01/55	227,518
9,060		Stanislaus
Cnty. Proj., Ser. D, Zero Coupon, 6/01/55	233,295
		Foothill
Eastn. Transp. Corridor Agcy., Hwy. Tolls RB,
3,495		5.75%,
1/15/40	3,537,534
2,000	3	Conv. Cap.
Apprec. Proj., 5.341%, 1/15/28	1,895,940
5,000	3	Conv. Cap.
Apprec. Proj., 5.381%, 1/15/28	4,739,850
805		Golden St.
Tobacco Sec. Corp., Misc. Purps. Tobacco Settlement Funded RB, Ser. A-1, 5.125%, 6/01/47	706,492
10,945	2	Los Altos
Sch. Dist., Sch. Impvts. Ad Valorem Ppty. Tax GO, Zero Coupon, 8/01/13, MBIA	4,743,563
15,460		Los Angeles
Cnty. Cap. Asset Leasing Corp., Lease Abatement RB, 5.95%, 12/01/07, AMBAC	15,491,384
4,545		Misc. Taxes
GO, 5.00%, 6/01/32	4,616,447
10,000		Pub.
Impvts. Ad Valorem Ppty. Tax GO, 5.00%, 3/01/33, CIFG	10,277,300
4,185		Univ. of
California, Univ. & Coll. Impvts. RB, Ser. B, 4.75%, 5/15/38	4,201,238
			62,153,412
Colorado0.8%
1,030		City of
Colorado Springs, Mult. Util. Impvts. RB, Ser. C, 5.00%, 11/15/45, FSA	1,055,317
1,020		Pk. Creek
Met. Dist., Ppty. Tax Misc. RB, 5.50%, 12/01/37	1,000,824
			2,056,141

Principal Amount (000)		Description	Value
Connecticut1.2%
$ 3,000	4	Mashantucket
Western Pequot Tribe, Casino RB, Ser. A, 5.50%, 9/01/28	$ 2,999,760
District of
Columbia2.1%
4,960		Tobacco
Settlement Fing. Corp., Tobacco Settlement Funded RB, 6.50%, 5/15/33	5,149,373
Florida18.2%
		Cnty. of
Miami-Dade, Recreational Fac. Impvts. Misc. SO,
3,380		Ser. A,
Zero Coupon, 10/01/31, MBIA	997,810
4,225		Ser. A,
Zero Coupon, 10/01/32, MBIA	1,182,113
4,000		Ser. A,
Zero Coupon, 10/01/33, MBIA	1,060,480
4,580		Ser. A,
Zero Coupon, 10/01/34, MBIA	1,152,465
5,000		Ser. A,
Zero Coupon, 10/01/35, MBIA	1,191,800
10,000		Ser. A,
Zero Coupon, 10/01/36, MBIA	2,259,300
10,000		Ser. A,
Zero Coupon, 10/01/37, MBIA	2,139,400
7,895		Cnty. of
Orange, Sales Tax RB, 4.75%, 10/01/32, XLCA	7,897,526
2,050		Fishhawk
Cmnty. Dev. Dist. II, Pub. Impvts. TA, Ser. A, 6.125%, 5/01/34	2,167,239
2,415		Halifax
Hosp. Med. Ctr., Hlth., Hosp. & Nursing Home RB, Ser. A, 5.00%, 6/01/38	2,329,147
3,700		Hillsborough
Cnty. Indl. Dev. Auth. RB, Nat. Gypsum Proj., Ser. A, 7.125%, 4/01/30, AMT	3,875,935
1,690		Jacksonville
Hlth. Facs. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Baptist Med. Ctr. Proj., Ser. A, 5.00%, 8/15/37	1,684,677
4,755		Miami Beach
Hlth. Facs. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Mt. Sinai Med. Ctr. Proj., 6.75%, 11/15/21	5,231,689
3,730		Sumter
Landing Cmnty. Dev. Dist., Retirement Facs. Misc. RB, Ser. B, 5.70%, 10/01/38	3,431,451
8,340		Vlg. Cmnty.
Dev. Dist. No. 6, Pub. Impvts. SA, 5.625%, 5/01/22	8,475,775
			45,076,807
Georgia3.1%
		City of
Atlanta,
1,760		Port, Arpt.
& Marina Impvts. RB, Ser. J, 5.00%, 1/01/34, FSA	1,802,451
4,000		Wtr. Util.
Impvts. RB, 5.00%, 11/01/34, FSA	4,102,040
1,500	2	Milledgeville
& Baldwin Cnty. Dev. Auth., Univ. & Coll. Impvts. RB, Georgia Coll. & St. Univ. Fndtn. Proj., 6.00%, 9/01/14	1,723,110
			7,627,601
Hawaii1.1%
2,500		Dept. of
Budget & Fin., Elec., Pwr. & Lt. RB, Hawaiian Elec. Co., Inc. Proj., Ser. D, 6.15%, 1/01/20, AMBAC, AMT	2,583,675
Illinois12.5%
1,920	4,5	Centerpoint
Intermodal Ctr. Prog. Trust TA, Ser. A, 8.00%, 6/15/23	1,917,523
3,210		Chicago
Hsg. Auth., Local or Gtd. Hsg. RB, 5.00%, 7/01/24, FSA	3,342,637
3,540		Chicago
OHare Intl. Arpt., Port, Arpt. & Marina RB, Ser. C-2, 5.25%, 1/01/30, FSA, AMT	3,618,234
5,000	6	Chicago
Pub. Bldg. Comm. Bldg., Sch. Impvts. Ad Valorem Ppty. Tax RB, Ser. A, 7.00%, 1/01/20, MBIA	6,303,050

Portfolio Abbreviations

ACA	American Capital Access
AMBAC	American Municipal Bond Assurance Corp.
AMT	Subject to Alternative Minimum Tax
CAPMAC	Capital Markets Assurance Co.
CIFG	CDC IXIS Financial Guaranty
CONNIE LEE	College Construction Loan Insurance Assoc.
COP	Certificate of Participation
FGIC	Financial Guaranty Insurance Co.
FSA	Financial Security Assurance
GO	General Obligation
MBIA	Municipal Bond Insurance Assoc.
PSF	Public School Fund Guaranteed
RAA	Radian Asset Assurance
RB	Revenue Bond
SA	Special Assessment
SO	Special Obligation
ST	Special Tax
TA	Tax Allocation
XLCA	XL Capital Assurance

| See Notes to Financial Statements. — ANNUAL
REPORT | OCTOBER 31, 2007 | 13 |
| --- | --- | --- |

| Portfolio of
Investments as of October 31, 2007 |
| --- |
| (Percentages shown are based on Net Assets) |

Principal Amount (000)		Description	Value
Illinois(contd)
		Fin. Auth.,
$ 690		Hlth.,
Hosp. & Nursing Home RB, Friendship Vlg. Schaumburg Proj., Ser. A, 5.625%, 2/15/37	$ 649,021
5,800		Hlth.,
Hosp. & Nursing Home RB, Northwestern Mem. Hosp. Proj., Ser. A, 5.50%, 8/15/43	6,074,978
700		Univ. &
Coll. Impvts. RB, MJH Ed. Asst. LLC Proj., Ser. B, 5.375%, 6/01/35	490,112
2,145		Mun. Elec.
Agcy., Elec., Pwr. & Lt. RB, 4.50%, 2/01/35, FGIC	2,066,558
6,500		Vlg. of
Bolingbrook, Ad Valorem Ppty. Tax GO, Ser. A, 4.75%, 1/01/38, MBIA	6,478,940
			30,941,053
Kentucky2.5%
13,500		Econ. Dev.
Fin. Auth., Hlth., Hosp. & Nursing Home RB, Norton Hlth. Care, Inc. Proj., Ser. B, Zero Coupon, 10/01/23, MBIA	6,189,480
Maryland2.6%
5,000		Cmnty. Dev.
Admin., Local or Gtd. Hsg. RB, Ser. A, 4.80%, 9/01/42, AMT	4,694,650
1,740		Hlth. &
Higher Edl. Facs. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Medstar Hlth., Inc. Proj., 5.50%, 8/15/33	1,777,375
			6,472,025
Massachusetts1.3%
3,075		Wtr. Recs.
Auth., Wtr. RB, Ser. A, 5.00%, 8/01/41	3,153,658
Michigan0.7%
1,670		Hosp. Fin.
Auth., Hlth., Hosp. & Nursing Home RB, Henry Ford Hlth. Sys. Proj., Ser. A, 5.25%, 11/15/46	1,685,280
Mississippi0.7%
1,900	5	Business
Fin. Comm., Indl. Impvts. RB, Northrop Grumman Ship Sys. Proj., 4.55%, 12/01/28	1,760,559
Missouri3.2%
5,250		Hsg. Dev.
Comm., Local or Gtd. Hsg. RB, Ser. B1, 5.05%, 3/01/38, AMT	5,276,880
2,820		Joint Mun.
Elec. Util. Comm., Elec., Pwr. & Lt. Impvts. RB, Plum Point Proj., 4.60%, 1/01/36, MBIA	2,737,459
			8,014,339
Multi-State4.8%
7,000	4,7	Charter Mac
Equity Issuer Trust, Ser. B, 7.60%, 11/30/10	7,594,860
4,000	4,7	MuniMae TE
Bd. Subsidiary LLC, Ser. B, 7.75%, 6/30/50	4,346,880
			11,941,740
Nebraska3.2%
		Omaha Pub.
Pwr. Dist., Elec., Pwr. & Lt. Impvts. RB,
2,765		Ser. A,
4.75%, 2/01/44	2,722,474
5,000		Ser. A,
5.00%, 2/01/34	5,120,850
			7,843,324
Nevada0.8%
2,065		Cnty. of
Clark, Private Schs. RB, Alexander Dawson Sch. Rainbow Proj., 5.00%, 5/15/29	2,066,384
New Jersey3.6%
7,000		Econ. Dev.
Auth., Econ. Impvts. Misc. RB, Cigarette Tax Proj., 5.75%, 6/15/29	7,332,570
1,510		Middlesex
Cnty. Impvt. Auth., Pub. Impvts. Hotel Occupancy Tax RB, Heldrich Associates LLC Proj.,
		Ser. B, 6.25%, 1/01/37	1,497,829
			8,830,399
New York5.7%
725		Albany
Indl. Dev. Agcy., Sch. Impvts. Lease Approp. RB, New Covenant Charter Sch. Proj., Ser. A, 7.00%, 5/01/35	604,940
		Dorm.
Auth., Univ. & Coll. Impvts. RB,
1,865	2,3	Univ. of
Rochester Proj., Ser. A, 5.963%, 7/01/10, MBIA	1,710,000
2,030	2,3	Univ. of
Rochester Proj., Ser. A, 6.013%, 7/01/10, MBIA	1,861,287

Principal Amount (000)		Description	Value
New
York(contd)
$ 4,100		Liberty
Dev. Corp., Indl. Impvts. Misc. RB, Goldman Sachs Grp., Inc. Proj., 5.25%, 10/01/35	$ 4,355,758
2,600	5	New York
City Indl. Dev. Agcy., Port, Arpt. & Marina Impvts. RB, American Airlines, Inc./JFK Intl. Arpt. Proj., 7.625%, 8/01/25, AMT	2,928,666
2,500		New York
City Mun. Wtr. Fin. Auth., Wtr. Util. Impvts. Wtr. RB, Ser. D, 5.00%, 6/15/38	2,573,975
			14,034,626
North
Carolina4.8%
5,000		Eastn. Mun.
Pwr. Agcy., Elec., Pwr. & Lt. RB, Ser. B, 7.00%, 1/01/08, CAPMAC	5,028,000
2,425		Gaston
Cnty. Indl. Facs. & Poll. Ctrl. Fing. Auth., Indl. Impvts. RB, 5.75%, 8/01/35, AMT	2,464,722
4,315		Med. Care
Comm., Hlth., Hosp. & Nursing Home RB, Novant Hlth., Inc. Proj., 5.00%, 11/01/39	4,338,603
			11,831,325
Ohio8.4%
10,475		Air Qual.
Dev. Auth., Rec. Recovery RB, Dayton Pwr. & Lt. Co. Proj., 4.80%, 1/01/34, FGIC	10,507,682
925		Buckeye
Tobacco Settlement Fin. Auth., Misc. Purpose Tobacco Settlement Funded RB, Ser. A-2, 6.50%, 6/01/47	959,641
		Cnty. of
Cuyahoga, Hlth., Hosp. & Nursing Home RB,
3,485		Cleveland
Clinic Fndtn. Proj., 6.00%, 1/01/20	3,836,916
5,000		Cleveland
Clinic Hlth. Sys. Proj., 6.00%, 1/01/21	5,499,600
			20,803,839
Oklahoma2.2%
2,110		Dev. Fin.
Auth., Hlth., Hosp. & Nursing Home RB, Saint John Hlth. Sys., Inc. Proj., 5.00%, 2/15/42	2,109,831
2,900	5	Tulsa Mun.
Arpt. Trust, Port, Arpt. & Marina Impvts. RB, AMR Corp. Proj., Ser. A, 7.75%, 6/01/35, AMT	3,203,224
			5,313,055
Pennsylvania6.6%
2,000		Delaware
River Port. Auth., Port, Arpt. & Marina RB, Port Dist. Proj., Ser. B, 5.70%, 1/01/22, FSA	2,078,280
		Econ. Dev.
Fing. Auth.,
6,380	5	Elec., Pwr.
& Lt. Impvts. RB, Reliant Energy, Inc. Proj., Ser. A, 6.75%, 12/01/36, AMT	6,834,447
2,000		Trans.
Impvts. Lease Renewal RB, Amtrak Proj., Ser. A, 6.25%, 11/01/31, AMT	2,063,900
3,100		Trans.
Impvts. Lease Renewal RB, Amtrak Proj., Ser. A, 6.375%, 11/01/41, AMT	3,217,459
980		Hsg. Fin.
Agcy., Local or Gtd. Hsg. RB, Ser. 97A, 4.60%, 10/01/27, AMT	925,679
		McKeesport
Area Sch. Dist., Ad Valorem Ppty. Tax GO,
870	6	Zero Coupon,
10/01/31, FGIC	281,106
2,435		Zero
Coupon, 10/01/31, FGIC	775,815
			16,176,686
Puerto
Rico2.6%
2,900		Elec. Pwr.
Auth., Elec., Pwr. & Lt. RB, Ser. UU, 5.00%, 7/01/23, FSA	3,084,991
3,115		Hwy. &
Transp. Auth., Hwy. Impvts. Tolls RB, Ser. N, 5.25%, 7/01/34	3,424,070
			6,509,061
Rhode
Island0.1%
200		Hlth. &
Edl. Bldg. Corp., Hlth., Hosp. & Nursing Home Impvts. RB, Lifespan Proj., 5.50%, 5/15/16, MBIA	204,270

| See Notes to Financial Statements. — 14 | ANNUAL
REPORT | OCTOBER 31, 2007 |
| --- | --- | --- |

| Portfolio of
Investments as of October 31, 2007 |
| --- |
| (Percentages shown are based on Net Assets) |

Principal Amount (000)		Description	Value
South
Carolina4.8%
$ 5,000		Hsg. Fin.
& Dev. Auth., Hsg. RB, Ser. A2, 5.15%, 7/01/37, AMBAC, AMT	$ 4,999,650
		Jobs-Econ.
Dev. Auth., Hlth., Hosp. & Nursing Home RB, Palmetto Hlth. Alliance Proj.,
4,000	2	6.875%,
8/01/13	4,654,701
2,185		Ser. A,
6.25%, 8/01/31	2,307,535
			11,961,886
Tennessee2.1%
4,865		Memphis-Shelby
Cnty. Arpt. Auth., Port, Arpt. & Marina Impvts. RB, Ser. D, 6.00%, 3/01/24, AMBAC, AMT	5,103,774
Texas14.4%
6,000	2	Grapevine,
Pub. Impvts. Ad Valorem Ppty. Tax GO, 5.875%, 8/15/10, FGIC	6,384,180
5,000		Harris
Cnty.-Houston Sports Auth., Hotel Occupancy Tax RB Ser. A, Zero Coupon, 11/15/38, MBIA	956,350
9,495		La Joya
Indpt. Sch. Dist., Sch. Impvts. Ad Valorem Ppty. Tax GO, 5.00%, 2/15/34, PSF	9,694,490
		Lower
Colorado River Auth., Misc. RB,
3,845		4.75%,
5/15/36, AMBAC	3,838,963
5	2	Ser. A,
5.00%, 5/15/13, MBIA	5,354
945		Ser. A,
5.00%, 5/15/31, MBIA	967,453
675		Montgomery
Cnty. Mun. Util. Dist. No. 46, Pub. Impvts. Ad Valorem Ppty. Tax GO, 4.75%, 3/01/30, MBIA	678,260
2,010		Pearland,
Ad Valorem Ppty. Tax GO, 4.75%, 3/01/29, FGIC	2,025,015
2,550		San Antonio
Energy Acquisition Pub. Fac. Corp., Natural Gas Util. Impvts. RB, 5.50%, 8/01/24	2,652,051
		Tpke.
Auth.,
3,325		Hwy. &
Tolls Impvts. RB, Ser. A, 5.00%, 8/15/42, AMBAC	3,372,780
15,000		Hwy. &
Tolls Impvts. RB, Zero Coupon, 8/15/31, AMBAC	3,989,550
1,000		Wtr. Util.
Impvts. GO, Wtr. Fin. Asst. Proj., 5.75%, 8/01/22	1,049,600
			35,614,046
Utah0.8%
1,950	6	Intermountain
Pwr. Agcy., Elec., Pwr. & Lt. RB, 5.00%, 7/01/13, AMBAC	1,952,164
Virginia1.0%
2,900		Tobacco
Settlement Fing. Corp., Tobacco Settlement Funded RB, Ser. B1, 5.00%, 6/01/47	2,474,570
Washington1.0%
1,420		Cnty. of
King, Swr. RB, 5.00%, 1/01/36, FSA	1,461,137
980		Hlth. Care
Facs. Auth., Hlth., Hosp. & Nursing Home RB, Providence Hlth. Care Svcs. Proj., 4.50%, 10/01/35, FGIC	936,459
			2,397,596
Wisconsin1.4%
3,220		Hlth. &
Edl. Facs. Auth., Hlth., Hosp. & Nursing Home RB, Aurora Hlth. Care Proj., 6.40%, 4/15/33	3,403,604
Wyoming0.8%
2,145		Cmnty. Dev.
Auth., Local or Gtd. Hsg. RB, Ser. 3, 4.75%, 12/01/37, AMT	2,014,392
		Total Long-Term Investments (cost $374,647,678)	385,558,473

Shares (000)
MONEY MARKET FUND2.2%
5,500	8,9	Merrill
Lynch Institutional Tax-Exempt Fund, 3.32% (cost $5,500,000)	5,500,000
Total Investments158.2% (cost
$380,147,678 10 )		$	391,058,473
Other assets in excess of
liabilities1.1%			2,778,737
Preferred shares at redemption value, including dividends payable(59.3)%			(146,564,821	)
Net Assets Applicable to Common
Shareholders100%		$	247,272,389

| 1 | Security, or a portion thereof, with a market value of
$1,069,590 has been pledged as collateral for swap contracts. |
| --- | --- |
| 2 | This bond is prerefunded. U.S. government securities, held
in escrow, are used to pay interest on this security, as well as retire the
bond in full at the date indicated, typically at a premium to par. |
| 3 | Represents a step up bond; the interest rate shown
reflects the effective yield at the time of purchase. |
| 4 | Security is not registered under the Securities Act of
1933. These securities may be resold in transactions in accordance with Rule
144A under that Act, to qualified institutional buyers. As of October 31,
2007, the Trust held 6.8% of its net assets, with a current market value of
$16,859,023, in securities restricted as to resale. |
| 5 | Variable rate security. Rate shown is interest rate as of
October 31, 2007. |
| 6 | Security is collateralized by Municipal or U.S. Treasury
obligations. |
| 7 | Security represents a beneficial interest in a trust. The
collateral deposited into the trust is federally tax-exempt revenue bonds
issued by various state or local governments, or their respective agencies or
authorities. The security is subject to remarketing prior to its stated
maturity, and is subject to mandatory redemption at maturity. |
| 8 | Represents an investment in an affiliate. |
| 9 | Represents current yield as of October 31, 2007. |
| 10 | Cost for federal income tax purposes is $378,826,582. The
net unrealized appreciation on a tax basis is $12,231,891, consisting of
$15,897,030 gross unrealized appreciation and $3,665,139 gross unrealized
depreciation. |

| See Notes to Financial Statements. — ANNUAL
REPORT | OCTOBER 31, 2007 | 15 |
| --- | --- | --- |

| Portfolio of
Investments as
of October 31, 2007 |
| --- |
| (Percentages shown are based on Net
Assets) |

Principal Amount (000)		Description	Value
LONG-TERM
INVESTMENTS156.8%
Alabama3.8%
		Birmingham Spl. Care Facs. Fing. Auth., Hlth., Hosp. & Nursing Home RB, Ascension Hlth. Proj.,
$ 4,545		Ser. C-2, 5.00%, 11/15/36	$ 4,564,589
3,260		Ser. C-2, 5.00%, 11/15/39	3,270,758
15,000	1	Huntsville Hlth. Care Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Ser. B, 5.75%, 6/01/12	16,485,000
			24,320,347
Arizona6.4%
5,386		Phoenix & Pima Cnty. Indl. Dev. Auth., Local or Gtd. Hsg. RB, Ser. 2007-1, 5.25%, 8/01/38, AMT	5,465,636
4,590		Pima Cnty. Indl. Dev. Auth., Sch. Impvts. Misc. RB, American Charter Schs. Fdtn. Proj., 5.625%, 7/01/38	4,523,629
		Salt Verde Financial Corp., Nat. Gas Util. Impvts. RB,
10,280		5.00%, 12/01/32	9,923,490
14,395		5.00%, 12/01/37	13,769,249
7,000	1	Scottsdale Indl. Dev. Auth., Hlth., Hosp. & Nursing Home RB, Scottsdale Hlth. Care Proj., 5.80%, 12/01/11	7,648,620
			41,330,624
California17.8%
7,000		California GO, 5.00%, 6/01/34	7,077,070
3,115	1	City of Lincoln, Pub. Impvts. ST, 6.00%, 9/01/13	3,553,841
		Cnty. Tobacco Sec. Agcy., Tobacco Settlement Funded RB,
3,385		Ser. B, Zero Coupon, 6/01/46	245,243
17,855		Ser. C, Zero Coupon, 6/01/55	572,967
22,825		Stanislaus Cnty. Proj., Ser. D, Zero Coupon,
6/01/55	587,744
		Foothill Eastn. Transp. Corridor Agcy., Hwy. Tolls RB,
54,635		Zero Coupon, 1/15/32	13,270,295
20,535		Zero Coupon, 1/15/34	4,412,561
75,000		Zero Coupon, 1/15/38	12,619,500
		Golden St. Tobacco Sec. Corp.,
10,000	1	Misc. Purps. Tobacco Settlement Funded RB, Ser.
A-1, 6.625%, 6/01/13	11,511,900
5,000		Tobacco Settlement Funded RB, Ser. A, 5.00%,
6/01/45	5,012,300
13,320		Los Angeles Regl. Arpts. Impvt. Corp., Lease Facs. RB, LAXfuel Corp., Los Angeles Intl. Arpt. Proj., 5.50%, 1/01/32, AMBAC, AMT	13,697,755
11,670		Misc. Taxes GO, 5.00%, 6/01/32	11,853,453
5,000		Murrieta Cmnty. Facs. Dist. No. 2, Econ. Impvts. ST, The Oaks Impvt. Area A Proj., 6.00%, 9/01/34	5,091,950
5,000		Statewide Cmnty. Dev. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Mem. Hlth. Svcs. Proj., Ser. A, 5.50%, 10/01/33	5,131,450
		Univ. of California, Univ. & Coll. Impvts. RB,
10,565		Ser. B, 4.75%, 5/15/38	10,605,992
5,000		Ser. C, 4.75%, 5/15/37, MBIA	5,027,800
4,015		West Valley-Mission Cmnty. Coll. Dist., Univ. & Coll. Impvts. Ad Valorem Ppty. Tax GO, 4.75%, 8/01/30, FSA	4,069,283
			114,341,104
Colorado1.4%
2,545		City of Colorado Springs, Mult. Util. Impvts. RB, Ser. C, 5.00%, 11/15/45, FSA	2,607,556
3,500	1	Denver Hlth. & Hosp. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Ser. A, 6.00%, 12/01/11	3,810,660
2,530		Pk. Creek Met. Dist., Ppty. Tax Misc. RB, 5.50%, 12/01/37	2,482,436
			8,900,652

		Description	Value
District of Columbia6.5%
$ 2,390		Misc. RB, Friendship Pub. Charter Sch. Proj., 5.25%, 6/01/33, ACA	$ 2,350,254
25,535		Tobacco Settlement Fing. Corp., Tobacco Settlement Funded RB, 6.75%, 5/15/40	26,418,256
66,785	1	Univ. & Coll. Impvts. RB, Georgetown Univ. Proj., Ser. A, Zero Coupon, 4/01/11, MBIA	12,827,124
			41,595,634
Florida11.2%
10,830		Cnty. of Orange, Sales Tax RB, 4.75%, 10/01/32, XLCA	10,833,466
1,905		Heritage Isle at Viera Cmnty. Dev. Dist., Wtr. Util. Impvts. SA, Ser. A, 6.00%, 5/01/35	1,992,839
9,670	1	Highlands Cnty. Hlth. Facs. Auth., Hlth., Hosp. & Nursing Home RB, Adventist Hlth. Sys./Sunbelt Proj., Ser. A, 6.00%, 11/15/11	10,603,445
		JEA,
11,035	2	Elec., Pwr. & Lt. Impvts. RB., Ser. 3A, 4.75%, 10/01/34, FSA	11,037,538
2,900		Wtr. Util. Impvts. Wtr. RB, Ser. A, 4.75%,
10/01/41, MBIA	2,900,986
9,000		Martin Cnty. Indl. Dev. Auth., Indl. RB, Indiantown Cogeneration Proj., Ser. A, 7.875%, 12/15/25, AMT	9,093,870
11,685		Miami Beach Hlth. Facs. Auth., Hlth., Hosp. & Nursing Home Impvts.
RB, Mt. Sinai Med. Ctr. Proj., 6.75%, 11/15/21	12,856,421
3,880		Stevens Plantation Cmnty. Dev. Dist., Pub. Impvts. SA, Ser. A, 7.10%, 5/01/35	4,058,170
8,335		Vlg. Cmnty. Dev. Dist. No. 6, Pub. Impvts. SA, 5.625%, 5/01/22	8,470,694
			71,847,429
Georgia0.6%
4,000		Richmond Cnty. Dev. Auth., Rec. Recovery RB, Intl. Paper Co. Proj., Ser. A, 6.00%, 2/01/25, AMT	4,124,640
Idaho2.8%
16,970	1	Univ. of Idaho, Univ. & Coll. Impvts. RB, Student Fee Hsg. Impvt. Proj., 5.40%, 4/01/11, FGIC	17,722,110
Illinois13.0%
4,630	3,4	Centerpoint Intermodal Ctr. Prog. Trust TA, Ser. A, 8.00%, 6/15/23	4,624,027
8,225		Chicago Hsg. Auth., Local or Gtd. Hsg. RB, 5.00%, 7/01/24, FSA	8,564,857
7,645		Chicago OHare Intl. Arpt., Port, Arpt. & Marina RB, Ser. C-2, 5.25%, 1/01/30, FSA, AMT	7,813,955
		Edl. Facs. Auth., Univ. & Coll. Impvts. RB,
760		Ser. A, 5.25%, 7/01/41	795,074
10,000	1	Student Hsg. Edl. Advancement Fund Univ. Ctr.
Proj., 6.25%, 5/01/12	11,194,800
		Fin. Auth.,
7,145	1	Cash Flow Mgmt. Hlth., Hosp. & Nursing Home
RB, Adventist Hlth. Sys. Sunbelt Oblig. Proj., 5.65%, 11/15/09	7,506,894
1,685		Hlth., Hosp. & Nursing Home RB, Friendship
Vlg. Schaumburg Proj., Ser. A, 5.625%, 2/15/37	1,584,928
3,700		Hlth., Hosp. & Nursing Home RB, Northwestern
Mem. Hosp. Proj., Ser. A, 5.50%, 8/15/43	3,875,417
1,675		Univ. & Coll. Impvts. RB, MJH Ed. Asst. LLC
Proj., Ser. B, 5.375%, 6/01/35	1,172,768
		Hlth. Facs. Auth., Hlth., Hosp. & Nursing Home RB Elmhurst Mem. Hosp. Proj.,
5,000		5.50%, 1/01/22	5,183,550
6,000		5.625%, 1/01/28	6,209,820
40,000		Met. Pier & Exposition Auth., Pub. Impvts. Sales Tax RB, McCormick Place Expansion Proj., Ser. A, Zero Coupon, 12/15/34, MBIA	10,904,000

| See Notes to Financial Statements. — 16 | ANNUAL
REPORT | OCTOBER
31, 2007 |
| --- | --- | --- |

| Portfolio of
Investments as
of October 31, 2007 |
| --- |
| (Percentages shown are based on Net
Assets) |

		Description	Value
Illinois(contd)
$ 7,975		Mun. Elec. Agcy., Elec., Pwr. & Lt. RB, 4.50%, 2/01/35, FGIC	$ 7,683,354
		Vlg. of Bolingbrook, Pub. Impvts. Ad Valorem Ppty. Tax GO,
7,120		Ser. B, Zero Coupon, 1/01/33, FGIC	2,126,388
14,085		Ser. B, Zero Coupon, 1/01/34, FGIC	3,999,013
			83,238,845
Indiana5.9%
9,000		Hlth. Fac. Fing. Auth., Hlth., Hosp. & Nursing Home RB, Methodist Hosp., Inc. Proj., 5.50%, 9/15/31	8,999,370
		Petersburg, Rec. Recovery Impvts. RB,
		Indianapolis Pwr. & Lt. Conv. Proj.,
10,000		5.90%, 12/01/24, AMT	10,350,700
16,000		5.95%, 12/01/29, AMT	16,356,640
2,390		Vincennes, Econ. Dev. RB, Southwest Indiana Regl. Youth Proj., 6.25%, 1/01/24	2,364,379
			38,071,089
Kentucky0.2%
1,365		Hsg. Corp., St. Hsg. RB, Ser. F, 5.45%, 1/01/32, AMT	1,378,868
Louisiana2.1%
9,215		Local Govt. Env. Facs. & Cmnty. Dev. Auth., Pub.
Impvts. Misc. RB, Cap. Projs. & Equip. Acquisition Proj., 6.55%, 9/01/25, ACA	10,103,510
3,257		Saint Tammany Parish Fin. Auth., Local Sngl. Fam. Hsg. RB, Ser. A, 5.25%, 12/01/39	3,377,226
			13,480,736
Maryland1.6%
3,200		City of Baltimore, Swr. Impvts. RB, Ser. D, 5.00%, 7/01/37, AMBAC	3,324,096
2,665		Cmnty. Dev. Admin., Local or Gtd. Hsg. RB, Ser. A, 4.65%, 9/01/32, AMT	2,500,570
4,205		Hlth. & Higher Edl. Facs. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Medstar Hlth., Inc. Proj., 5.50%, 8/15/33	4,295,323
			10,119,989
Massachusetts1.1%
6,770		Wtr. Recs. Auth., Wtr. RB, Ser. A, 5.00%,
8/01/41	6,943,177
Michigan0.7%
4,230		Hosp. Fin. Auth., Hlth., Hosp. & Nursing Home RB, Henry Ford Hlth. Sys. Proj., Ser. A, 5.25%, 11/15/46	4,268,705
Mississippi3.7%
4,845	4	Business Fin. Comm., Indl. Impvts. RB, Northrop Grumman Ship Sys. Proj., 4.55%, 12/01/28	4,489,426
18,680		Gulfport, Hlth., Hosp. & Nursing Home Impvts. RB, Mem. Hosp. at Gulfport Proj., Ser. A, 5.75%, 7/01/31	18,967,672
			23,457,098
Missouri0.1%
695		Joint Mun. Elec. Util. Comm., Elec., Pwr. & Lt. Impvts. RB, Plum Point Proj., 4.60%, 1/01/36, MBIA	674,657
Multi-State7.1%
		Charter Mac Equity Issuer Trust,
1,000	3,5	Ser. A, 6.625%, 6/30/49	1,036,990
11,000	3,5	Ser. A-2, 6.30%, 6/30/49	11,346,390
16,000	3,5	Ser. A-3, 6.80%, 10/01/52	18,098,560
6,500	3,5	Ser. B-1, 6.80%, 11/30/50	6,899,880
8,000	3,5	MuniMae TE Bd. Subsidiary LLC, Ser. A, 6.875%, 6/30/49	8,324,560
			45,706,380
Nebraska1.1%
6,990		Omaha Pub. Pwr. Dist., Elec., Pwr. & Lt. Impvts. RB, Ser. A, 4.75%, 2/01/44	6,882,494

		Description	Value
Nevada1.6%
		Cnty. of Clark,
$ 5,000		Port, Arpt. & Marina RB, Jet Aviation Fuel Tax
Proj., Ser. C, 5.00%, 7/01/40, AMBAC	$ 5,098,550
5,260		Private Schs. RB, Alexander Dawson Sch. Rainbow
Proj., 5.00%, 5/15/29	5,263,524
			10,362,074
New Hampshire1.2%
4,000		Bus. Fin. Auth., Indl. RB, Pub. Svc. Co. Proj., Ser. B, 4.75%, 5/01/21, MBIA, AMT	4,035,480
3,500		Hlth. & Ed. Facs. Auth., Hlth., Hosp. & Nursing Home RB, Exeter Hosp. Proj., 5.75%, 10/01/31	3,633,665
			7,669,145
New Jersey8.2%
		Econ. Dev. Auth.,
18,500		Econ. Impvts. Misc. RB, Cigarette Tax Proj., 5.75%, 6/15/29	19,378,935
15,410	4	Port, Arpt. & Marina Impvts. RB, Contl.
Airlines, Inc. Proj. 7.00%, 11/15/30, AMT	15,977,242
8,000		SA, Kapkowski Rd. Landfill Proj., 6.50%,
4/01/28	9,080,080
3,680		Middlesex Cnty. Impvt. Auth., Pub. Impvts. Hotel Occupancy Tax RB, Heldrich Associates LLC Proj., Ser. B, 6.25%, 1/01/37	3,650,339
5,000		Tobacco Settlement Fing. Corp., Tobacco Settlement RB, Ser. 1A, 4.50%, 6/01/23	4,664,650
			52,751,246
New York8.0%
1,820	6	Albany Indl. Dev. Agcy., Sch. Impvts. Lease Approp. RB, New Covenant Charter Sch. Proj., Ser. A, 7.00%, 5/01/35	1,518,608
5,375		Env. Facs. Corp., Swr. Impvts. Misc. RB, NYC Mun. Wtr. Proj., Ser. B, 5.00%, 6/15/31	5,503,785
6,025		Liberty Dev. Corp., Indl. Impvts. Misc. RB, Goldman Sachs Grp., Inc. Proj., 5.25%, 10/01/35	6,400,840
7,115		Met. Transp. Auth., Misc. RB, Ser. A, 5.00%, 7/01/30, AMBAC	7,295,934
		New York City Indl. Dev. Agcy., Port, Arpt. & Marina Impvts. RB, American Airlines, Inc./JFK Intl. Arpt. Proj.,
22,140	4	7.75%, 8/01/31, AMT	25,103,439
5,000	4	8.00%, 8/01/28, AMT	5,750,150
			51,572,756
North Carolina3.7%
12,550		Cap. Facs. Fin. Agcy., Coll. & Univ. RB, Duke Univ. Proj., Ser. B, 4.25%, 7/01/42	11,383,101
12,130		Gaston Cnty. Indl. Facs. & Poll. Ctrl. Fing. Auth., Indl. Impvts. RB, 5.75%, 8/01/35, AMT	12,328,689
			23,711,790
Ohio6.9%
		Air Qual. Dev. Auth.,
14,500		Indl. RB, Cleveland Elec. Illuminating Co. Proj., Ser. B, 6.00%, 8/01/20	14,793,335
23,820		Rec. Recovery RB, Dayton Pwr. & Lt. Co. Proj., 4.80%, 1/01/34, FGIC	23,894,318
1,540		Buckeye Tobacco Settlement Fin. Auth., Misc. Purpose Tobacco Settlement Funded RB, Ser. A-2, 6.50%, 6/01/47	1,597,673
3,760		Pinnacle Cmnty. Infrastructure Fing. Auth., Hsg. Misc. RB, Ohio Facs. Proj., Ser. A, 6.25%, 12/01/36	3,853,098
			44,138,424
Oklahoma2.1%
5,420		Dev. Fin. Auth., Hlth., Hosp. & Nursing Home RB, Saint John Hlth. Sys., Inc. Proj., 5.00%, 2/15/42	5,419,566
7,175	4	Tulsa Mun. Arpt. Trust, Port, Arpt. & Marina Impvts. RB, AMR Corp. Proj., Ser. A, 7.75%, 6/01/35, AMT	7,925,218
			13,344,784

| See Notes to Financial Statements. — ANNUAL
REPORT | OCTOBER
31, 2007 | 17 |
| --- | --- | --- |

| Portfolio of Investments as of
October 31, 2007 |
| --- |
| (Percentages shown are based on Net Assets) |

		Description
Pennsylvania4.7%
		Econ. Dev. Fing. Auth.,
$ 15,580	4	Elec., Pwr. & Lt. Impvts. RB, Reliant
Energy, Inc. Proj., Ser. A, 6.75%, 12/01/36, AMT	$ 16,689,763
6,500		Trans. Impvts. Lease Renewal RB, Amtrak
Proj., Ser. A, 6.375%, 11/01/41, AMT	6,746,285
4,000		Higher Edl. Facs. Auth., Univ. &
Coll. Impvts. RB, La Salle Univ. Proj., 5.50%, 5/01/34	4,070,160
2,500		Hsg. Fin. Agcy., Local or Gtd. Hsg. RB, Ser. 97A, 4.60%, 10/01/27, AMT	2,361,425
			29,867,633
Puerto Rico2.7%
11,000		Elec. Pwr. Auth., Elec., Pwr. & Lt.
RB, Ser. UU, 5.00%, 7/01/20, FSA	11,801,130
5,000		Hwy. & Transp. Auth., Hwy. Impvts.
Tolls RB, Ser. N, 5.25%, 7/01/36	5,497,400
			17,298,530
South Carolina6.1%
		Jobs-Econ. Dev. Auth., Hlth., Hosp.
& Nursing Home RB, Palmetto Hlth. Alliance Proj.,
9,000	1	6.875%, 8/01/13	10,473,077
5,075		Ser. A, 6.25%, 8/01/31	5,359,606
		Lexington Cnty., Hlth., Hosp. &
Nursing Home RB, Lexington Med. Ctr. Proj.,
5,000	1	5.50%, 11/01/13	5,485,950
10,000	1	5.75%, 11/01/13	11,105,400
6,345		Scago Edl. Facs. Corp. for Colleton Sch.
Dist., Lease RB, Chesterfield Cnty. Sch. Proj., 5.00%, 12/01/29	6,560,032
			38,984,065
Tennessee2.3%
20,825		Knox Cnty. Hlth., Edl. & Hsg. Facs.
Brd., Hlth., Hosp. & Nursing Home RB, Covenant Hlth. Proj., Ser. A, Zero Coupon, 1/01/20, FSA	11,086,605
3,475		Shelby Cnty. Hlth., Edl. & Hsg.
Facs. Brd., Hlth., Hosp. & Nursing Home RB, Saint Judes Childrens Hosp. Proj., 5.00%, 7/01/25	3,545,821
			14,632,426
Texas13.3%
4,435	6,7	Affordable Hsg. Corp., Multi-Fam. Hsg.
RB, Amer. Oppty. Hsg. Portfolio Proj., Ser. B, 8.00%, 3/01/32	659,174
		Harris Cnty.-Houston Sports Auth.,
12,580		Hotel Occupancy Tax RB, Ser. A, Zero
Coupon, 11/15/38, MBIA	2,406,177
5,000		Hotel Occupancy Tax RB, Ser. H, Zero
Coupon, 11/15/35, MBIA	1,154,050
26,120		Lease RB, Ser. A-3, Zero Coupon, 11/15/37,
MBIA	5,145,901
		Lower Colorado River Auth., Misc. RB,
5	1	Ser. A, 5.00%, 5/15/13, MBIA	5,354
2,395		Ser. A, 5.00%, 5/15/31, MBIA	2,451,905
13,305		Transm. Svcs. Proj., 4.75%, 5/15/34, AMBAC	13,308,992
1,700		Montgomery Cnty. Mun. Util. Dist. No.
46, Pub. Impvts. Ad Valorem Ppty. Tax GO, 4.75%, 3/01/30, MBIA	1,708,211
5,060		Pearland, Ad Valorem Ppty. Tax GO, 4.75%, 3/01/29, FGIC	5,097,798
6,540		San Antonio Energy Acquisition Pub.
Corp., Nat. Gas Util. Impvts. RB, 5.50%, 8/01/25	6,788,193
8,390		Tpke. Auth., Hwy. & Tolls Impvts.
RB, Ser. A, 5.00%, 8/15/42, AMBAC	8,510,564
		Tpke. Auth., Hwy. & Toll Impvts. RB,
35,000		Zero Coupon, 8/15/32, AMBAC	8,744,400
62,325		Zero Coupon, 8/15/33, AMBAC	14,637,650
65,040		Zero Coupon, 8/15/34, AMBAC	14,387,498
			85,005,867
Virginia0.3%
8,105		Comnwlth. Transp. Brd., Hwy. Impvts. RB,
Zero Coupon, 4/01/32, MBIA	2,280,180

		Description
Washington1.4%
$ 3,615		Cnty. of King, Swr. RB, 5.00%, 1/01/36, FSA	$ 3,719,726
5,095		Hlth. Care Facs. Auth., Hlth., Hosp.
& Nursing Home RB, Providence Hlth. Sys. Proj., Ser. A, 4.625%, 10/01/34, FGIC	4,975,930
			8,695,656
West Virginia0.3%
2,070		Econ. Dev. Auth., Correctional Fac.
Impvts. Lease RB, Correctional Juvenile Safety Proj., Ser. A, 5.00%, 6/01/29, MBIA	2,131,893
Wisconsin6.1%
		Hlth. & Edl. Facs. Auth., Hlth., Hosp. & Nursing Home
RB,
7,500		Aurora Hlth. Care Proj., 6.40%, 4/15/33	7,927,650
12,545	1	Froedtert & Cmnty. Hlth. Oblig. Grp.
Proj., 5.375%, 10/01/11	13,474,710
1,205		Froedtert & Cmnty. Hlth. Oblig. Grp.
Proj., 5.375%, 10/01/30	1,269,455
15,000	1	Wheaton Franciscan Svcs. Proj., 5.75%,
2/15/12	16,405,200
			39,077,015
Wyoming0.8%
		Cmnty. Dev. Auth., Local or Gtd. Hsg. RB,
2,765		Ser. 3, 4.65%, 12/01/27, AMT	2,629,681
2,605		Ser. 3, 4.70%, 12/01/32, AMT	2,454,822
			5,084,503
		Total Long-Term Investments (cost $964,462,694)	1,005,012,565


MONEY MARKET FUND0.4%
2,600	8,9	Merrill Lynch Institutional Tax-Exempt
Fund, 3.32% (cost $2,600,000)	2,600,000
Total Investments157.2% (cost $967,062,694 10 )		$	1,007,612,565
Other assets in excess of liabilities1.3%			8,630,029
Preferred shares at
redemption value, including dividends payable(58.5)%			(375,261,855	)
Net Assets Applicable to Common Shareholders100%		$	640,980,739

| 1 | This bond is prerefunded. U.S. government securities, held in
escrow, are used to pay interest on this security, as well as retire the bond
in full at the date indicated, typically at a premium to par. |
| --- | --- |
| 2 | Security, or a portion thereof, with a market value of
$1,480,340 has been pledged as collateral for swap contracts. |
| 3 | Security is not registered
under the Securities Act of 1933. These securities may be resold in transactions
in accordance with Rule 144A under that Act, to qualified institutional
buyers. As of October 31, 2007, the Trust held 7.9% of its net assets, with
a current market value of $50,330,407, in securities restricted as to resale. |
| 4 | Variable rate security. Rate shown is interest rate as of
October 31, 2007. |
| 5 | Security represents a beneficial interest in a trust. The
collateral deposited into the trust is federally tax-exempt revenue bonds
issued by various state or local governments, or their respective agencies or
authorities. The security is subject to remarketing prior to its stated
maturity, and is subject to mandatory redemption at maturity. |
| 6 | Illiquid security. As of October 31, 2007, the Trust held 0.3%
of its net assets, with a current market value of $2,177,782, in these
securities. |
| 7 | Issuer is in default and/or bankruptcy. |
| 8 | Represents an investment in an affiliate. |
| 9 | Represents current yield as of October 31, 2007. |
| 10 | Cost for federal income tax purposes is $964,443,827. The net
unrealized appreciation on a tax basis is $43,168,738, consisting of
$53,567,845 gross unrealized appreciation and $10,399,107 gross unrealized
depreciation. |

18 ANNUAL REPORT OCTOBER 31, 2007

Portfolio of Investments as of October 31, 2007
(Percentages shown are based on Net Assets)

		Description
LONG-TERM INVESTMENTS192.1%
Municipal Bonds95.4%
Arizona5.0%
$ 2,095		Phoenix & Pima Cnty. Indl. Dev.
Auth., Local or Gtd. Hsg. RB, Ser. 2007-1, 5.25%, 8/01/38, AMT	$ 2,125,524
		Pima Cnty. Indl. Dev. Auth.,
158	1	Local or Gtd. Hsg. RB, 4.89%, 2/04/12, AMT	158,000
1,700		Sch. Impvts. Misc. RB, American Charter Schs.
Fdtn. Proj., 5.625%, 7/01/38	1,675,418
1,000		Sch. Impvts. Misc. RB, Arizona Charter Schs.
Proj., Ser. 0, 5.25%, 7/01/31	949,310
		Salt Verde Financial Corp., Nat. Gas Util. Impvts. RB,
1,850		5.00%, 12/01/32	1,785,842
2,590		5.00%, 12/01/37	2,477,413
			9,171,507
California5.5%
7,000		Irvine Unified Sch. Dist. Fin. Grp. II,
Sch. Impvts. ST, Ser. A, 5.125%, 9/01/36	6,660,850
3,625		Statewide Cmntys. Dev. Auth., Hlth.,
Hosp. & Nursing Home RB, Daughters of Charity Proj., Ser. A, 5.00%, 7/01/39	3,437,442
			10,098,292
Colorado2.0%
2,500	1	Hlth. Facs. Auth., Hlth., Hosp. &
Nursing Home RB, Adventist Hlth./Sunbelt Proj., 5.125%, 11/15/29	2,536,975
1,200		North Range Met. Dist. No 2, Pub.
Impvts. Ad Valorem Ppty. Tax GO, Shea Homes LP Proj., 5.50%, 12/15/37	1,096,584
			3,633,559
Connecticut1.6%
3,000		St. Hsg. Fin. Auth., Local or Gtd. Hsg.
RB, Ser. A-2, 5.15%, 5/15/38, AMT	3,004,590
District of Columbia12.4%
		Tobacco Settlement Fing. Corp., Tobacco
Settlement Funded RB,
6,470		6.25%, 5/15/24	6,700,655
15,415		6.50%, 5/15/33	16,003,545
			22,704,200
Florida5.5%
1,000	1	Highlands Cnty. Hlth. Facs. Auth.,
Hlth., Hosp. & Nursing Home Impvts. RB, Adventist Bolingbrook Hlth. Sys. Proj., 5.125%, 11/15/32	1,008,980
2,830		Hillsborough Cnty. Indl. Dev. Auth.,
Hlth., Hosp. & Nursing Home Impvts. RB, Tampa Gen. Hosp. Proj., 5.00%, 10/01/36	2,783,107
845		Jacksonville Hlth. Facs. Auth., Hlth.,
Hosp. & Nursing Home Impvts. RB, Baptist Med. Ctr. Proj., Ser. A, 5.00%, 8/15/37	842,338
1,150		Orange Cnty. Hlth. Facs. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, 1st Mtg. Orlando Lutheran
Tower Proj., 5.50%, 7/01/38	1,092,833
		Sarasota Cnty. Hlth. Facs. Auth., Hlth.,
Hosp. & Nurisng Home RB, Vlg. On The Isle Proj.,
560		5.50%, 1/01/27	548,274
520		5.50%, 1/01/32	496,564
1,750		Tolomato Cmnty. Dev. Dist., Pub. &
Recreational Fac. Impvts. SA, 6.65%, 5/01/40	1,749,300
1,850		Watergrass Cmnty. Dev. Dist., Pub.
Impvts. SA, Ser. A, 5.375%, 5/01/39	1,585,598
			10,106,994

		Description
Municipal Bonds(contd)
Georgia1.4%
$ 1,000		Cobb Cnty. Dev. Auth., Rec. Recovery
Impvts. RB, Wst. Mgmt., Inc. Proj., Ser. A, 5.00%, 4/01/33, AMT	$ 929,360
1,600		Rockdale Cnty. Dev. Auth., Indl. Impvts.
RB, Visy Paper Proj., Ser. A, 6.125%, 1/01/34, AMT	1,598,384
			2,527,744
Illinois3.7%
		Fin. Auth.,
3,000		Coll. & Univ. RB, Illinois Inst. of
Technology Proj., Ser. A, 5.00%, 4/01/36	2,911,320
4,000		Hlth., Hosp. & Nursing Home RB, Proctor
Hosp. Proj., 5.125%, 1/01/25	3,908,200
			6,819,520
Indiana2.1%
2,000		Delaware Cnty. Hosp. Auth., Hlth., Hosp.
& Nursing Home RB Ball Mem. Hosp., Inc. Proj., 5.25%, 8/01/36	1,962,000
1,985		Hlth. & Edl. Fac. Fing. Auth.,
Hlth., Hosp. & Nursing Home RB, Cmnty. Fndtn. Northwest Ind. Proj., 5.50%, 3/01/37	1,976,246
			3,938,246
Kansas1.9%
3,650		Lenexa, Hlth., Hosp. & Nursing Home
Impvts. RB, Lakeview Vlg., Inc. Proj., 5.50%, 5/15/39	3,564,481
Louisiana0.8%
1,424		Saint Tammany Parish Fin. Auth., Local
Sngl. Fam. Hsg. RB Ser. A, 5.25%, 12/01/39	1,476,242
Maryland0.5%
1,000		Hlth. & Higher Edl. Facs. Auth.,
Hlth., Hosp. & Nursing Home Impvts. RB, King Farm Presbyterian Cmnty. Proj., 5.00%, 1/01/17	974,120
Michigan0.7%
1,540		Garden City Hosp. Fin. Auth., Hlth.,
Hosp. & Nursing Home RB, Garden City Hosp. Proj., Ser. A, 5.00%, 8/15/38	1,350,056
Minnesota5.6%
6,460		Hsg. Fin. Agy., Local or Gtd. Hsg. RB,
Residential Hsg. Proj., 4.85%, 7/01/31, AMT	6,230,476
4,000		Mun. Pwr. Agy., Elec., Pwr. & Lt. Impvts. RB, 5.00%, 10/01/35	4,054,640
			10,285,116
Mississippi0.5%
915	1	Business Fin. Comm., Indl. Impvts. RB,
Northrop Grumman Ship Sys. Proj., 4.55%, 12/01/28	847,848
Missouri1.4%
2,500		Hsg. Dev. Comm., Local or Gtd. Hsg. RB, Ser. B1, 5.05%, 3/01/38, AMT	2,512,800
Montana2.3%
		Two Rivers Auth., Correctional Fac. Impvts. Misc. RB,
1,500		7.25%, 11/01/21	1,520,985
2,600		7.375%, 11/01/27	2,646,020
			4,167,005
New Hampshire2.7%
5,000		Business Fin. Auth., Indl. Impvts. RB,
Wst. Mgmt., Inc. Proj., 5.20%, 5/01/27, AMT	4,892,100
New Jersey2.9%
5,000		Tobacco Settlement Fing. Corp., Pub.
Impvts. Tobacco Settlement Funded RB, 5.75%, 6/01/32	5,360,750

See Notes to Financial Statements.

ANNUAL REPORT OCTOBER 31, 2007 19

| Portfolio of
Investments as
of October 31, 2007 |
| --- |
| (Percentages shown are based on Net
Assets) |

Principal Amount (000)		Description	Value
Municipal
Bonds(contd)
New
Mexico1.9%
$ 3,750		Farmington
Poll. Ctrl., Misc. RB, Pub. Svc. Co. of New Mexico Proj., Ser. B, 4.875%, 4/01/33	$ 3,548,700
New
York10.1%
5,000		Liberty
Dev. Corp., Indl. Impvts. Misc. RB, Goldman Sachs Grp., Inc. Proj., 5.25%, 10/01/35	5,311,900
5,000	2	Nassau
Cnty. Tobacco Settlement Corp., Tobacco Settlement Funded RB, Ser. A2, 5.25%, 6/01/26	4,538,850
7,600	1	New York
City Indl. Dev. Agcy., Port, Arpt. & Marina Impvts. RB, American Airlines, Inc. Proj., 7.625%, 8/01/25, AMT	8,560,716
			18,411,466
North
Carolina0.6%
1,160		Med. Care
Comm., Hlth., Hosp. & Nursing Home RB, Novant Hlth., Inc. Proj., 5.00%, 11/01/39	1,166,345
Oklahoma0.6%
1,015		Dev. Fin.
Auth., Hlth., Hosp. & Nursing Home RB, Saint John Hlth. Sys., Inc. Proj., 5.00%, 2/15/42	1,014,919
Pennsylvania1.9%
2,080		Allegheny
Cnty. Hosp. Dev. Auth., Hlth., Hosp. & Nursing Home RB, West Penn Allegheny Hlth. Sys. Proj.
		5.375%,
11/15/40	1,997,778
1,000		Harrisburg
Auth., Univ. & Coll. Impvts. RB, Harrisburg Univ. of Science Proj., 5.40%, 9/01/16	1,009,010
450		Hsg. Fin.
Agcy., Local or Gtd. Hsg. RB, Ser. 97A, 4.60%, 10/01/27, AMT	425,056
			3,431,844
Puerto
Rico0.8%
1,500		Indl.
Tourist Edl. Med. & Env. Ctrl. Facs. Fing. Auth., Univ. & Coll. Impvts. RB, Ana G. Mendez Univ. Sys. Proj.,
		5.00%,
3/01/36	1,427,940
South
Carolina3.8%
1,040		Hlth. &
Edl. Fac. Auth., Hlth., Hosp. & Nursing Home RB, Sanford Hlth. Proj., 5.00%, 11/01/40	1,041,321
		Jobs-Econ.
Dev. Auth., Hlth., Hosp. & Nursing Home RB, First Mtg. Lutheran Homes Proj.,
600		5.50%,
5/01/28	568,944
1,000		5.625%,
5/01/42	942,860
2,500		Jobs-Econ.
Dev. Auth., Misc. RB, Burroughs & Chapin Proj., 4.70%, 4/01/35, RAA	2,355,925
2,000		Scago Edl.
Facs. Corp. for Colleton Sch. Dist., Sch. Impvts. Lease Approp. RB, Williamsburg Cnty. Proj.,
		5.00%,
12/01/31, RAA	1,991,600
			6,900,650
Tennessee1.3%
5,000		Knox Cnty.
Hlth., Edl. & Hsg. Facs. Brd., Hlth., Hosp. & Nursing Home Impvts. RB, Covenant Hlth. Proj.,
		Zero
Coupon, 1/01/36	1,093,550
1,215		Shelby
Cnty. Hlth., Edl. & Hsg. Facs. Brd., Hlth., Hosp. & Nursing Home Impvts. RB, Saint Jude Childrens Research Hosp. Proj., 5.00%, 7/01/31	1,229,410
			2,322,960
Texas6.8%
1,247		Affordable
Hsg. Corp., Sngl. Fam. Hsg. RB, Professional Educators Proj., 5.50%, 12/01/39, AMT	1,320,597
2,000		Brazos
River Poll. Ctrl. Auth., Swr. Impvts. Misc. RB, TXU Energy Co. LLC Proj., 5.00%, 3/01/41, AMT	1,663,300
1,150		HFDC of
Central Texas, Inc. Retirement Fac., Hlth., Hosp. & Nursing Home RB, Vlg. at Gleannloch Farms Proj., Ser. A, 5.50%, 2/15/27	1,089,717

Principal Amount (000)		Description	Value
Municipal
Bonds(contd)
Texas(contd)
$ 34,560		Leander
Indpt. Sch. Dist., Ad Valorem Ppty. Tax GO, Zero Coupon, 8/15/42, PSF	$ 5,162,918
2,000		Mission
Econ. Dev. Corp., Rec. Recvery RB, Allied Wst. Ind. Proj., 5.20%, 4/01/18, AMT	1,967,420
1,250		West
Central Regl. Hsg. Fin., Local or Gtd. Hsg. RB, Ser. A, 5.35%, 12/01/39, AMT	1,300,913
			12,504,865
Vermont2.5%
4,670	1	Hsg. Fin.
Agcy., Local or Gtd. Hsg. RB, 4.90%, 5/01/38, FSA, AMT	4,491,373
Virginia2.3%
850		Fairfax
Cnty. Econ. Dev. Auth., Local or Gtd. Hsg. RB, Goodwin House, Inc. Proj., 5.125%, 10/01/42	814,054
2,600		Peninsula
Ports Auth., Hlth., Hosp. & Nursing Home RB, Baptist Homes Proj., Ser. C, 5.375%, 12/01/26	2,505,256
1,000		Reynolds
Crossing Cmnty. Dev. Auth., Pub. Impvts. SA, Reynolds Crossing Proj., 5.10%, 3/01/21	963,760
			4,283,070
Wisconsin3.8%
		Hlth. & Edl. Facs. Auth.,
5,335		Hlth.,
Hosp. & Nursing Home Impvts. RB, Ascension Hlth. Proj., 5.00%, 11/15/31	5,392,885
1,535		Hlth.,
Hosp. & Nursing Home RB, Franciscan Sisters Healthcare Proj., 5.00%, 9/01/26	1,494,706
			6,887,591
Wyoming0.5%
1,015		Cmnty. Dev.
Auth., Local or Gtd. Hsg. RB, Ser. 3, 4.70%, 12/01/32, AMT	956,484
		Total Municipal Bonds	174,783,377
Municipal
Bonds Held in Trust96.7% 3
California19.4%
15,000		Golden St.
Tobacco Sec. Corp., Tobacco Settlement Funded RB, 5.00%, 6/01/45, AMBAC	15,255,000
5,000		Hlth. Fac.
Fing. Auth., Hlth., Hosp. & Nursing Home RB, Sutter Hlth. Proj., Ser. A, 5.25%, 11/15/46	5,092,450
15,000		Univ. of
California, Univ. & Coll. Impvts. RB, Ser. B, 4.75%, 5/15/38, MBIA	15,083,400
			35,430,850
Georgia16.7%
		City of Atlanta,
15,000		Port, Arpt. & Marina RB, Ser. C, 5.00%, 1/01/33, FSA	15,357,450
15,000		Wtr. Util. Impvts. Wtr. RB, 5.00%, 11/01/43, FSA	15,283,650
			30,641,100
Illinois8.4%
15,000		Chicago
OHare Intl. Arpt., Port, Arpt. & Marina RB, Ser. A, 5.00%, 1/01/33, FGIC	15,424,350
Indiana7.6%
		Carmel
Redev. Auth., Econ. Impvts. Lease RB, Performing Arts Ctr. Proj.,
7,230		4.75%,
2/01/33	7,122,779
6,580		5.00%,
2/01/33	6,704,230
			13,827,009
Massachusetts6.6%
11,855		Hsg. Fin.
Agcy., Local or Gtd. Hsg. RB, Ser. D, 5.45%, 6/01/37, AMT	12,036,381

| See Notes to Financial Statements. — 20 | ANNUAL
REPORT | OCTOBER
31, 2007 |
| --- | --- | --- |

| Portfolio of
Investments as
of October 31, 2007 |
| --- |
| (Percentages shown are based on Net
Assets) |

Principal Amount (000)		Description	Value
Municipal
Bonds Held in Trust 3 (contd)
Nebraska8.2%
$ 15,000		Omaha Pub.
Pwr. Dist., Elec., Lt. & Pwr. Impvts. RB, Ser. B, 4.75%, 2/01/36, FGIC	$ 15,080,400
New
York8.4%
15,000		New York
City Mun. Wtr. Fin. Auth., Wtr. RB, Ser. D, 5.00%, 6/15/39	15,410,400
North
Carolina16.3%
13,495	4	Charlotte-Mecklenburg
Hosp. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Carolinas Hlth. Care Sys. Proj., Ser. A, 5.00%, 1/15/15	14,559,620
15,170		Univ. of
North Carolina, Univ. & Coll. Impvts. RB, Ser. A, 4.75%, 12/01/34	15,291,057
			29,850,677
Texas5.1%
9,150		New Caney
Indpt. Sch. Dist., Sch. Impvts. Ad Valorem Ppty. Tax GO, 5.00%, 2/15/35, PSF	9,386,529
		Total Municipal Bonds Held in Trust	177,087,696
		Total Long-Term Investments (cost
$358,802,970)	351,871,073
Shares (000)
MONEY
MARKET FUND1.4%
2,600	5,6	Merrill
Lynch Institutional Tax-Exempt Fund, 3.32% (cost $2,600,000)	2,600,000
Total Investments193.5% (cost
$361,402,970 7 )			$ 354,471,073
Other assets in excess of
liabilities4.7%			8,552,377
Liability for trust certificates,
including interest payable(98.2)%			(179,862,120	)
Net Assets100%			$ 183,161,330

| 1 | Variable rate security. Rate shown is interest rate as of
October 31, 2007. |
| --- | --- |
| 2 | Represents a step up bond; the interest rate shown
reflects the effective yield at the time of purchase. |
| 3 | Security represents underlying bonds transferred to a
separate securitization trust established in a tender option bond transaction
in which the Trust has acquired the residual interest certificates. These
securities serve as collateral in a financing transaction. See Note 2 to
Financial Statements for details of municipal bonds held in trust. |
| 4 | This bond is prerefunded. U.S. government securities, held
in escrow, are used to pay interest on this security, as well as retire the
bond in full at the date indicated, typically at a premium to par. |
| 5 | Represents an investment in an affiliate. |
| 6 | Represents current yield as of October 31, 2007. |
| 7 | Cost for federal income tax purposes is $360,878,609. The
net unrealized depreciation on a tax basis is $6,407,536, consisting of
$2,238,052 gross unrealized appreciation and $8,645,588 gross unrealized
depreciation. |

| See Notes to Financial Statements. — ANNUAL
REPORT | OCTOBER
31, 2007 | 21 |
| --- | --- | --- |

| Portfolio of
Investments as of October 31, 2007 |
| --- |
| (Percentages shown are based on Net Assets) |

Principal Amount (000)		Description
LONG-TERM
INVESTMENTS148.4%
California131.4%
$ 1,000		Ad Valorem
Ppty. Tax GO, 5.00%, 9/01/32	$ 1,014,200
625		California
St. Univ., Coll. & Univ. RB, Ser. C, 5.00%, 11/01/38, MBIA	644,531
500		Chabot-Las
Positas Cmnty. Coll. Dist., Univ. & Coll. Impvts. Ad Valorem Ppty. Tax GO, 5.00%, 8/01/31, AMBAC	520,085
		City of
Chula Vista,
275		Nat. Gas
Util. Impvts. Nat. Gas RB, 5.00%, 12/01/27, AMT	277,156
320		RB, San
Diego Gas & Elec. Proj., 5.00%, 12/01/27, AMT	322,509
1,000		Cnty. of
San Bernardino, Pub. Impvts. ST, 5.90%, 9/01/33	1,013,350
600		Contra
Costa Wtr. Dist., Wtr. RB, Ser. 0, 5.00%, 10/01/24, AMBAC	635,586
		Golden St.
Tobacco Sec. Corp., Misc. Purps. Tobacco Settlement Funded RB,
250		Ser. A-1,
5.125%, 6/01/47	219,407
600	1	Ser. B,
5.50%, 6/01/13	656,862
400	1	Ser. B,
5.625%, 6/01/13	440,416
1,040		Hlth. Facs.
Fing. Auth., Hlth., Hosp. & Nursing Home RB, Cedars Sinai Med. Ctr. Proj., 5.00%, 11/15/34	1,042,028
500		Infrastructure
& Econ. Dev. Bank, Misc. RB, Salvation Army Proj., 5.00%, 9/01/27, AMBAC	520,245
1,000		Los Angeles
Cnty. Cmnty. Facs. Dist. No. 3 ST, Ser. A, 5.50%, 9/01/14, FSA	1,026,420
510		Los Angeles
Dept. of Arpts., Port, Arpt. & Marina RB, Ontario Intl. Proj., Ser. A, 5.00%, 5/15/26, MBIA, AMT	520,292
500		Los Angeles
Dept. of Wtr. & Pwr., Elec., Pwr. & Lt. RB, Pwr. Sys. Proj., 5.00%, 7/01/35, FSA	516,030
945	2	Los Angeles
Regl. Arpts. Impvt. Corp., Port, Arpt. & Marina Impvts. RB, American Airlines, Inc. Proj., Ser. B, 7.50%, 12/01/24, AMT	1,026,308
500		Met. Wtr.
Dist. of Southern California, Wtr. Util. Impvts. RB, Ser A, 5.00%, 7/01/37	519,390
500	2	Poll. Ctrl.
Fing. Auth., Rec. Recovery Impvts. RB, Chemical Wst. Mgmt., Inc. Proj., Ser. C, 5.125%, 11/01/23, AMT	494,890
1,000		Poway
Unified Sch. Dist., Pub. Impvts. ST, Cmnty. Facs. Dist. No. 6 Proj., 5.60%, 9/01/33	1,006,000
40		Pub.
Impvts. Misc. GO, 5.75%, 3/01/19	40,249
500		Pub. Wks.
Brd., Correctional Fac. Impvts. Lease Abatement RB, Dept. Corrections Rehab Proj., Ser. H, 5.00%, 11/01/31	507,605
500		Rural Home
Mtg. Fin. Auth., Local Sngl. Fam. Hsg. RB, 5.40%, 12/01/36, AMT	528,065
40		Southern
California Pub. Pwr. Auth., Elec., Pwr. & Lt. RB, 5.50%, 7/01/20, MBIA	40,062
500		Southern
Home Fin. Auth., Local or Gtd. Hsg. RB, Ser. A, 5.80%, 12/01/49, AMT	538,185
500		Southern
Pub. Pwr. Auth., Nat. Gas Util. Impvts. RB, Ser. A, 5.00%, 11/01/33	485,140
		Statewide
Cmntys. Dev. Auth., Hlth., Hosp. & Nursing Home RB,
500		Kaiser
Hosp. Asset Mgmt. Proj., 5.25%, 8/01/31	510,865
500		Kaiser
Permanente Proj., Ser. A, 5.00%, 4/01/31	502,215
500		Kaiser
Permanente Proj., Ser. B, 5.25%, 3/01/45	506,020
900	1	Tobacco
Sec. Auth. of Southern California, Misc. Purps. Tobacco Settlement Funded RB, Ser. A, 5.625%, 6/01/12	981,504

Principal Amount (000)		Description
California
(contd)
$ 750		Tustin
Unified Sch. Dist., Sch. Impvts. Ad Valorem Ppty. Tax ST, Cmnty. Facs. Dist. 97-1-A Proj., 5.00%, 9/01/32, FSA	$ 765,757
500		Vacaville
Unified Sch. Dist., Sch. Impvts. Ad Valorem Ppty. Tax GO, 5.00%, 8/01/30, MBIA	519,155
			18,340,527
Puerto
Rico17.0%
500		Comnwlth.,
Pub. Impvts. Ad Valorem Ppty. Tax GO, Ser. A, 5.00%, 7/01/34	503,910
255	1	Elec. Pwr.
Auth., Elec., Pwr. & Lt. Impvts. RB, Ser. NN, 5.125%, 7/01/13	275,984
85		Hwy. &
Transp. Auth., Hwy. Tolls RB, Ser. L, 5.25%, 7/01/38, AMBAC	94,932
700		Indl.
Tourist Edl. Med. & Env. Ctrl. Facs. Fing. Auth., Univ. & Coll. Impvts. RB, Ana G. Mendez Univ. Sys. Proj., 5.00%, 3/01/26	687,589
745	1	Pub. Fin.
Corp., Cash Flow Mgmt. Misc. RB, Ser. E, 5.50%, 2/01/12	801,799
			2,364,214
		Total Long-Term Investments (cost $20,142,370)	20,704,741
Shares (000)
MONEY
MARKET FUND3.0%
418	3,4	CMA
California Mun. Money Fund, 2.88% (cost $417,505)	417,505
Total Investments151.4% (cost
$20,559,875 5 )			$ 21,122,246
Other assets in excess of
liabilities2.4%			338,082
Preferred shares at redemption
value, including dividends payable(53.8)%			(7,504,171	)
Net Assets Applicable to Common
Shareholders100%			$ 13,956,157

| 1 | This bond is prerefunded. U.S. government securities, held
in escrow, are used to pay interest on this security, as well as retire the
bond in full at the date indicated, typically at a premium to par. |
| --- | --- |
| 2 | Variable rate security. Rate shown is interest rate as of
October 31, 2007. |
| 3 | Represents an investment in an affiliate. |
| 4 | Represents current yield as of October 31, 2007. |
| 5 | Cost for federal income tax purposes is $20,555,268. The
net unrealized appreciation on a tax basis is $566,978, consisting of
$727,416 gross unrealized appreciation and $160,438 gross unrealized
depreciation. |

| See Notes to Financial Statements. — 22 | ANNUAL
REPORT | OCTOBER
31, 2007 |
| --- | --- | --- |

| Portfolio of
Investments as of October 31, 2007 |
| --- |
| (Percentages shown are based on Net Assets) |

Principal Amount (000)		Description
LONG-TERM
INVESTMENTS153.7%
California134.6%
		Anaheim
Pub. Fing. Auth., Recreational Fac. Impvts. Lease Abatement RB, Pub. Impvt. Proj.,
$ 24,500		Ser. C,
Zero Coupon, 9/01/31, FSA	$ 7,639,100
6,070		Ser. C,
Zero Coupon, 9/01/32, FSA	1,797,934
		California GO,
5,500		Ser. BZ,
5.35%, 12/01/21, MBIA, AMT	5,521,285
5,000		Ser. BZ,
5.375%, 12/01/24, MBIA, AMT	5,017,250
10,000		Cash Flow
Mgmt. Ad Valorem Ppty. Tax GO, 5.50%, 11/01/33	10,569,200
		City of
Chula Vista,
4,395		Nat. Gas
Util. Impvts. Nat. Gas RB, 5.00%, 12/01/27, AMT	4,429,457
5,065		RB, San
Diego Gas & Elec. Proj., 5.00%, 12/01/27, AMT	5,104,710
1,905	1	City of
Richmond, Swr. Impvts. RB, Zero Coupon, 8/01/31, FGIC	616,077
		City of San
Jose, Local Multi-Fam. Hsg. RB,
2,880		Lenzen Hsg.
Proj., Ser. B, 5.45%, 2/20/43, AMT	2,916,864
3,595		Vlgs. Pkwy.
Sr. Apts. Proj., Ser. D, 5.50%, 4/01/34, AMT	3,637,169
2,000	2	City of
Vernon, Elec., Pwr. & Lt. Impvts. RB, Malburg Generating Station Proj., 5.50%, 4/01/08	2,017,380
5,000		Cnty.
Tobacco Sec. Agcy., Misc. Purp. Tobacco Settlement Funded RB, Stanislaus Fdg. Proj., Ser. A, 5.875%, 6/01/43	5,010,650
		Dept. of
Wtr. Recs.,
6,000	2	Cash Flow
Mgmt., Elec., Pwr. & Lt. RB, Ser. A, 5.375%, 5/01/12	6,529,080
4,000	2	Elec., Pwr.
& Lt. RB, Ser. A, 5.375%, 5/01/12	4,352,720
10,000		Edl. Facs.
Auth., Univ. & Coll. Impvts. RB, Stanford Univ. Proj., Ser. Q, 5.25%, 12/01/32	10,350,200
6,000		El Monte,
Pkg. Fac. Impvts. Lease Abatement COP, Dept. of Pub. Svcs. Facs. Phase II Proj., 5.25%, 1/01/34, AMBAC	6,118,620
		Elk Grove
Unified Sch. Dist., Sch. Impvts. ST, Cmnty. Facs. Dist. 1 Proj.,
7,485		Zero
Coupon, 12/01/29, AMBAC	2,291,907
7,485		Zero
Coupon, 12/01/30, AMBAC	2,166,533
7,485		Zero
Coupon, 12/01/31, AMBAC	2,048,121
		Foothill
Eastn. Transp. Corridor Agcy., Hwy. Tolls RB,
5,000		Zero
Coupon, 1/15/33	1,143,050
5,000		Zero
Coupon, 1/15/34	1,074,400
13,445		Zero
Coupon, 1/15/35	2,720,058
1,000		Zero
Coupon, 1/15/38	168,260
5,000	3	5.064%,
1/15/26	4,758,450
10,030		5.75%,
1/15/40	10,152,065
		Golden St.
Tobacco Sec. Corp., Misc. Purps. Tobacco Settlement Funded RB,
2,000	2	Ser. A-1,
6.625%, 6/01/13	2,302,380
8,500	2	Ser. B,
5.50%, 6/01/13	9,305,545
5,800	2	Ser. B,
5.625%, 6/01/13	6,386,032
		Hlth. Facs.
Fin. Auth., Hlth., Hosp. & Nursing Home Impvts. RB,
4,890	1	Kaiser
Proj., Ser. A, 5.40%, 5/01/28	4,969,071
3,000	2	Valleycare
Med. Ctr. Proj., Ser. A, 5.375%, 5/01/12	3,232,320
5,000		Huntington
Beach Union High Sch. Dist., Sch. Impvts. Ad Valorem Ppty. Tax GO, Zero Coupon, 8/01/33, FGIC	1,452,000

Principal Amount (000)		Description
California(contd)
		Infrastructure
& Econ. Dev. Bank,
$ 13,500		Hlth.,
Hosp. & Nursing Home Impvts. RB, Kaiser Asst. Corp. Proj., Ser. A, 5.55%, 8/01/31	$ 13,932,675
15,250		Hlth.,
Hosp. & Nursing Home Impvts. RB, The J. David Gladstone Proj., 5.25%, 10/01/34	15,460,145
5,000	2	Hwy.
Impvts. Tolls RB, Bay Area Toll Brdgs. Proj., Ser. A, 5.00%, 1/01/28, AMBAC	5,440,200
4,965		Irvine,
Local Sngl. Fam. Hsg. RB, Meadows Mobile Home Pk. Proj., Ser. A, 5.70%, 3/01/28	4,994,045
7,700	2	Kaweah
Delta Hlth. Care Dist., Hlth., Hosp. & Nursing Home RB, 6.00%, 8/01/12	8,665,811
		Lathrop
Fing. Auth., Wtr. Util. Impvts. Wtr. RB,
2,855		5.90%,
6/01/27	2,864,250
5,140		6.00%,
6/01/35	5,156,602
		Live Oak
Unified Sch. Dist., Sch. Impvts. Ad Valorem Ppty. Tax GO, Cap. Apprec. Election 2004,
985		Zero
Coupon, 8/01/35, XLCA	233,622
1,030		Zero
Coupon, 8/01/36, XLCA	230,792
1,080		Zero
Coupon, 8/01/37, XLCA	228,323
1,125		Zero
Coupon, 8/01/38, XLCA	224,606
1,175		Zero
Coupon, 8/01/39, XLCA	221,253
1,230		Zero
Coupon, 8/01/40, XLCA	218,399
1,285		Zero
Coupon, 8/01/41, XLCA	215,109
1,340		Zero
Coupon, 8/01/42, XLCA	212,336
1,400		Zero
Coupon, 8/01/43, XLCA	209,076
1,465		Zero
Coupon, 8/01/44, XLCA	206,140
4,110	3	Los Angeles
Regl. Arpts. Impvt. Corp., Port, Arpt. & Marina Impvts. RB, American Airlines, Inc. Proj., Ser. C, 7.50%, 12/01/24, AMT	4,463,625
5,000		Los Angeles
Unified Sch. Dist., Ad Valorem Ppty. Tax GO, Ser. A-1, 4.50%, 1/01/28, MBIA	4,947,400
8,000		Met. Wtr.
Dist. of Southern California, Wtr. Util. Impvts. RB, Ser A, 5.00%, 7/01/37	8,310,240
5,000		Misc. Tax
GO, 5.00%, 6/01/37	5,064,400
1,000		Palm
Springs, Hsg. RB, Sahara Mobile Home Pk. Proj., 5.625%, 5/15/26	1,021,340
		Poll. Ctrl.
Fing. Auth., Rec. Recovery Impvts. RB,
2,290		Central
Valley Wst. Svc. Proj., Ser. A-2, 5.40%, 4/01/25, AMT	2,305,274
6,000	4	Chemical
Wst. Mgmt., Inc. Proj., Ser. C, 5.125%, 11/01/23, AMT	5,938,680
4,000		Rancho
Cucamonga Cmnty. Facs. Dist., Pub. Impvts. ST, Ser. A, 6.50%, 9/01/33	4,209,120
15,500		Rancho
Cucamonga Redev. Agcy., Econ. Impvts. TA, Rancho Redev. Proj., 5.125%, 9/01/30, MBIA	15,858,515
9,000		San Diego
Cmnty. Coll. Dist., Univ. & Coll. Impvts. Ad Valorem Ppty. Tax GO, 5.00%, 8/01/32, FSA	9,382,410
6,500		San
Francisco City & Cnty. Arpts. Comm., Port, Arpt. & Marina RB, Ser. 27-A, 5.25%, 5/01/31, MBIA, AMT	6,586,970
		San
Francisco City & Cnty. Redev. Agcy., Pub. Impvts. ST, Cmnty. Facs. Dist. No. 6, Mission Bay South Proj.,
1,775		6.125%,
8/01/31	1,808,051
7,500		6.25%,
8/01/33	7,696,950
		Santa Clara
Cnty. Hsg. Auth., Local Multi-Fam. Hsg. RB,
1,715		John Burns
Gardens Apts. Proj., Ser. A, 5.85%, 8/01/31, AMT	1,779,827
1,235		River Town
Apts. Proj., Ser. A, 6.00%, 8/01/41, AMT	1,288,982
3,075		Santa
Clarita, Cmnty. Facs. Dist. ST, Valencia Town Ctr. Proj., 5.85%, 11/15/32	3,101,568

| See Notes to Financial Statements. — ANNUAL
REPORT | OCTOBER
31, 2007 | 23 |
| --- | --- | --- |

| Portfolio of
Investments as of October 31, 2007 |
| --- |
| (Percentages shown are based on Net Assets) |

Principal Amount (000)		Description
California(contd)
		Statewide
Cmnty. Dev. Auth.,
$ 4,000		Hlth.,
Hosp. & Nursing Home Impvts. RB, Daughters of Charity Proj., Ser. A, 5.25%, 7/01/30	$ 4,009,720
10,000		Hlth.,
Hosp. & Nursing Home Impvts. RB, Sutter Hlth. Oblig. Grp. Proj., Ser. B, 5.625%, 8/15/42	10,387,400
7,000		Hlth.,
Hosp. & Nursing Home RB, Kaiser Permanente Proj., Ser. B, 5.25%, 3/01/45	7,084,280
2,000		Upland
Unified Sch. Dist., Sch. Impvts. Ad Valorem Ppty. Tax GO, Ser. B, 5.125%, 8/01/25, FSA	2,111,320
2,245		Val Verde
Unified Sch. Dist. ST, 6.25%, 10/01/28	2,366,477
			304,233,821
Multi-State9.7%
		Charter Mac
Equity Issuer Trust,
7,000	5,6	Ser. A-2,
6.30%, 6/30/49	7,220,430
4,000	5,6	Ser. B-1,
6.80%, 11/30/50	4,246,080
		MuniMae TE
Bd. Subsidiary LLC,
7,000	5,6	Ser. A,
6.30%, 6/30/49	7,210,350
3,000	6	Ser. B,
6.80%, 6/30/50	3,180,330
			21,857,190
Puerto
Rico9.4%
10,000	2	Elec. Pwr.
Auth., Elec., Pwr. & Lt. Impvts. RB, Ser. 2, 5.25%, 7/01/12	10,845,500
10,000	2	Pub. Fin.
Corp., Cash Flow Mgmt. Misc. RB, Ser. E, 5.70%, 2/01/10	10,486,900
			21,332,400
		Total Long-Term Investments (cost $332,495,726)	347,423,411
Shares (000)
MONEY
MARKET FUND3.1%
6,844	7,8	CMA
California Mun. Money Fund, 2.88% (cost $6,844,361)	6,844,361
Total Investments156.8% (cost
$339,340,087 9 )			$ 354,267,772
Other assets in excess of
liabilities1.6%			3,664,983
Preferred shares at redemption
value, including dividends payable(58.4)%			(131,993,468	)
Net Assets Applicable to Common
Shareholders100%			$ 225,939,287

| 1 | Security is collateralized by Municipal or U.S. Treasury
obligations. |
| --- | --- |
| 2 | This bond is prerefunded. U.S. government securities, held
in escrow, are used to pay interest on this security, as well as retire the
bond in full at the date indicated, typically at a premium to par. |
| 3 | Represents a step up bond; the interest rate shown
reflects the effective yield at time of purchase. |
| 4 | Variable rate security. Rate shown is interest rate as of
October 31, 2007. |
| 5 | Security is not registered under the Securities Act of
1933. These securities may be resold in transactions in accordance with Rule
144A under that Act, to qualified institutional buyers. As of October 31,
2007, the Trust held 8.3% of its net assets, with a current market value of
$18,676,860, in securities restricted as to resale. |
| 6 | Security represents a beneficial interest in a trust. The
collateral deposited into the trust is federally tax-exempt revenue bonds
issued by various state or local governments, or their respective agencies or
authorities. The security is subject to remarketing prior to its stated
maturity, and is subject to mandatory redemption at maturity. |
| 7 | Represents an investment in an affiliate. |
| 8 | Represents current yield as of October 31, 2007. |
| 9 | Cost for federal income tax purposes is $339,174,020. The
net unrealized appreciation on a tax basis is $15,093,752, consisting of
$15,855,772 gross unrealized appreciation and $762,020 gross unrealized
depreciation. |

| See Notes to Financial Statements. — 24 | ANNUAL
REPORT | OCTOBER
31, 2007 |
| --- | --- | --- |

| Portfolio of
Investments as
of October 31, 2007 |
| --- |
| (Percentages shown are based on Net
Assets) |

Principal Amount (000)		Description
LONG-TERM
INVESTMENTS158.7%
Arizona1.7%
$ 250		Salt Verde
Financial Corp., Nat. Gas Util. Impvts. RB, 5.25%, 12/01/29	$ 260,440
Florida145.1%
240		Arborwood
Cmnty. Dev. Dist., Pub. Impvts. SA, Master Infrastructure Proj., Ser. B, 5.10%, 5/01/14	225,806
500		Ave Maria
Stewardship Cmnty. Dev. Dist., Pub. Impvts. SA, 4.80%, 11/01/12	472,140
170	1	Boynton
Beach, Util. Sys. RB, 6.25%, 11/01/20, FGIC	199,283
500		Broward
Cnty. Hsg. Fin. Auth., Local or Gtd. Hsg. RB, Ser. E, 5.90%, 10/01/39, AMT	530,280
700		Broward
Cnty. Sch. Brd., Sch. Impvts. Lease Renewal COP, Ser. A, 5.00%, 7/01/30, FSA	717,423
700		City of
Fort Myers, Wtr. Util. Impvts. RB, 5.00%, 10/01/31, MBIA	722,848
455		Cnty. of
Escambia, Indl. RB, Intl. Paper Co. Proj., Ser. A, 5.00%, 8/01/26, AMT	433,670
265		Cnty. of
Madison, Correctional Fac. Impvts. RB, Twin Oaks Juvenile Dev. Proj., Ser. A, 6.00%, 7/01/25	266,492
		Cnty. of
Miami-Dade,
750		Florida
Aviation, Port, Arpt. & Marina RB, Miami Intl. Arpt. Proj., Ser. B, 5.00%, 10/01/37, FGIC	764,010
1,000	2	Misc. Tax
RB, Ser. B, Zero Coupon, 10/01/08, AMBAC	696,210
5,000		Recreational
Fac. Impvts. Misc. Taxes RB, Ser. B, Zero Coupon, 10/01/31, MBIA	1,375,450
750		Cnty. of
Saint Johns, Pub. Impvts. Wtr. RB, 5.00%, 10/01/35, FSA	770,287
500		Collier
Cnty. Sch. Brd., Sch. Impvts. Lease COP, 5.00%, 2/15/27, FSA	517,625
500		Halifax
Hosp. Med. Ctr., Hlth., Hosp. & Nursing Home RB, Ser. A, 5.25%, 6/01/26	508,965
250		Heritage
Harbour North Cmnty. Dev. Dist., Pub. Impvts. Wtr. Util. & Swr. Impvts. SA, 6.375%, 5/01/38	248,205
555		Higher Edl.
Facs. Fing. Auth., Univ. & Coll. Impvts. RB, Flagler Coll., Inc. Proj., 5.25%, 11/01/36, XLCA	580,924
750		Highlands
Cnty. Hlth. Fac. Auth., Hlth., Hosp. & Nursing Home RB, Adventist/Sunbelt Hosp. Proj., 5.00%, 11/15/30	751,463
250		Hillsborough
Cnty. Hsg. Fin. Auth., Local or Gtd. Hsg. RB, Ser. 1, 5.375%, 10/01/49, AMT	264,993
500	3	Hillsborough
Cnty. Indl. Dev. Auth., Hlth., Hosp. & Nursing Home RB, H. Lee Moffitt Cancer Ctr. Proj., 5.25%, 7/01/37	504,110
240		Hsg. Fin.
Corp., Local or Gtd. Hsg. RB, Ser. 3, 5.15%, 7/01/38, AMT	239,616
500		Jacksonville
Hlth. Facs. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Southern Baptist Hosp. Proj., Ser. A, 5.00%, 8/15/37, FSA	509,660
250		Jacksonville
Hsg. Fin. Auth., Local or Gtd. Hsg. RB, Ser. A-1, 5.625%, 10/01/39, AMT	259,368
500		Lee Cnty.
Hsg. Fin. Auth., Local Sngl. Fam. Hsg. RB, Mult. Cnty. Proj., Ser. A-2, 6.00%, 9/01/40, AMT	543,325
400	4	Lee Cnty.
Indl. Dev. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Alliance Cmnty. for Retirement Proj., 5.00%, 11/15/32	371,436
250		Lee Mem.
Hlth. Sys. Hosp., Hlth., Hosp. & Nursing Home Impvts. RB, Ser. A, 5.00%, 4/01/32, AMBAC	255,835
250	3	Manatee
Cnty. Hsg. Fin. Auth., Local or Gtd. Hsg. RB, Ser. A, 5.90%, 9/01/40	265,490

Principal Amount (000)		Description	Value
Florida(contd)
$ 500		Miami Beach
Hlth. Facs. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Mt. Sinai Med. Ctr. Proj., 6.75%, 11/15/21	$ 550,125
750		Miami Hlth.
Facs. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Catholic Hlth. East Proj., Ser. C, 5.125%, 11/15/24	765,787
500		Miami-Dade
Cnty. Hsg. Fin. Auth., Local or Gtd. Hsg. RB, Home Ownership Mtg. Proj., Ser. A, 5.55%, 10/01/49, AMT	528,660
250		New River
Cmnty. Dev. Dist., Pub. Impvts. SA, Ser. B, 5.00%, 5/01/13	236,643
500		Orange
Cnty. Edl. Facs. Auth., Univ. & Coll. Impvts. RB, Rollins Coll. Proj., 5.25%, 12/01/37, AMBAC	527,205
		Orange
Cnty. Hlth. Facs. Auth.,
105		Misc.
RB, Orlando Lutheran Towers Proj. 5.375%, 7/01/20	102,126
95		Misc.
RB, Orlando Lutheran Towers Proj., 5.70%, 7/01/26	93,917
500		Orange
Cnty. Sch. Brd., Sch. Impvts. Lease COP, Ser. A, 5.00%, 8/01/32, FGIC	513,875
750		Peace
River/Manasota Regl. Wtr. Sply. Auth., Wtr. Util. Impvts. RB, Ser. A, 5.00%, 10/01/35, FSA	768,285
400		Pine Ridge
Plantation Cmnty. Dev. Dist., Wtr. Util. Impvts. SA, Ser. B, 5.00%, 5/01/11	384,012
1,000	2	Pinellas
Cnty. Hlth. Fac. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Baycare Hlth. Sys., Inc. Proj., 5.50%, 5/15/13	1,093,050
700		South
Florida Wtr. Mgmt. Dist., Wtr. Util. Impvts. Lease Approp. COP, 5.00%, 10/01/36, AMBAC	716,149
585		Stevens
Plantation Impvt. Proj. Dependent Spl. Dist., Pub. Impvts. Misc. RB, 6.375%, 5/01/13	590,522
250		Tolomato
Cmnty. Dev. Dist., Pub. Impvts. Recreational Fac. Impvts. SA, 6.55%, 5/01/27	250,000
1,050		Univ. of
North Florida Fing. Corp., Univ. & Coll. Impvts. Lease RB, Hsg. Proj., 5.00%, 11/01/37, FGIC	1,078,276
750		Vlg. Ctr.
Cmnty. Dev. Dist., Recreational Fac. Impvts. RB, Ser. A, 5.00%, 11/01/32, MBIA	767,467
			21,961,013
Puerto Rico11.9%
500		Comnwlth.,
Pub. Impvts. Ad Valorem Ppty. Tax GO, Ser. A, 5.00%, 7/01/34	503,910
85		Hwy. &
Transp. Auth., Hwy. Tolls RB, Ser. L, 5.25%, 7/01/38, AMBAC	94,932
400		Indl.
Tourist Edl. Med. & Env. Ctrl. Facs. Fing. Auth., Univ. & Coll. Impvts. RB, Ana G. Mendez Univ. Sys. Proj., 5.00%, 3/01/26	392,908
745	2	Pub. Fin.
Corp., Cash Flow Mgmt. Misc. RB, Ser. E, 5.50%, 2/01/12	801,799
			1,793,549
		Total Long-Term Investments (cost $23,738,791)	24,015,002
Shares (000)
MONEY MARKET
FUND1.4%
211	5,6	CMA Florida
Mun. Money Fund, 2.81% (cost $210,500)	210,500
Total Investments160.1% (cost
$23,949,291 7 )			$ 24,225,502
Liabilities in excess of other
assets(3.9)%			(586,732	)
Preferred shares at redemption value, including
dividends payable(56.2)%			(8,504,890	)
Net Assets Applicable to Common
Shareholders100%			$ 15,133,880

| See Notes to Financial Statements. — ANNUAL
REPORT | OCTOBER
31, 2007 | 25 |
| --- | --- | --- |

| Portfolio of
Investments as
of October 31, 2007 |
| --- |
| (Percentages shown are based on
Net Assets) |

26 ANNUAL REPORT OCTOBER 31, 2007

| Portfolio of
Investments as
of October 31, 2007 |
| --- |
| (Percentages shown are based on Net
Assets) |

Principal Amount (000)		Description	Value
LONG-TERM INVESTMENTS155.3%
Arizona1.2%
$ 1,175		Salt Verde
Financial Corp., Nat. Gas Util. Impvts. RB, 5.25%, 12/01/29	$ 1,224,068
Florida143.9%
1,000		Ave Maria
Stewardship Cmnty. Dev. Dist., Pub. Impvts. SA, 4.80%, 11/01/12	944,280
7,705		Beacon
Tradeport Cmnty. Dev. Dist. SA, Ser. A, 5.625%, 5/01/32, RAA	7,965,121
2,000		Boynton
Beach, Hsg. RB, Clipper Cove Apts. Proj., 5.45%, 1/01/33, ACA	2,006,980
5,550	1	Brd. of
Ed., Sch. Impvts. Misc. GO, Ser. A, 5.125%, 6/01/10	5,829,942
2,000		Brevard
Cnty. Hlth. Facs. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, First Hlth., Inc. Proj., 5.00%, 4/01/36	1,981,940
2,800		Cap. Projs.
Fin. Auth., Univ. & Coll. Impvts. RB, Cap. Projs. Loan Proj., Ser. F-1, 5.00%, 10/01/31, MBIA	2,851,576
1,355		City of
Fort Myers, Wtr. Util. Impvts. RB, 5.00%, 10/01/31, MBIA	1,399,227
4,000		City of
Jacksonville, Pub. Impvts. Sales Tax RB, 5.00%, 10/01/26, MBIA	4,079,560
2,770	2	City of Melbourne, Wtr. Util. Impvts. RB, Zero Coupon, 10/01/21, FGIC	1,501,312
		City of Tampa,
5,500		Univ. &
Coll. Impvts. RB, Univ. of Tampa Proj., 5.625%, 4/01/32, RAA	5,632,275
4,000		Wtr. RB,
Ser. A, 5.00%, 10/01/26	4,092,480
1,690		Cnty. of
Madison, Correctional Fac. Impvts. RB, Twin Oaks Juvenile Dev. Proj., Ser. A, 6.00%, 7/01/25	1,699,515
		Cnty. of Miami-Dade,
2,595		Misc. Taxes
RB, Ser. A, Zero Coupon, 10/01/19, MBIA	1,411,810
25,000		Recreational
Fac. Impvts. Misc. Tax SO, Ser. C, Zero Coupon, 10/01/28, MBIA	8,082,250
9,700		Recreational
Fac. Impvts. Misc. Tax SO, Ser. B, Zero Coupon, 10/01/33, MBIA	2,380,962
1,300		Cnty. of
Orange, Misc. Tax RB, 5.00%, 10/01/29, AMBAC	1,341,964
1,000		Cnty. of
Saint Johns, Pub. Impvts. Wtr. RB, 5.00%, 10/01/35, FSA	1,027,050
1,200		Collier
Cnty. Sch. Brd., Sch. Impvts. Lease COP, 5.00%, 2/15/27, FSA	1,242,300
1,000		Easton Pk. Comm. Dev. Dist., Pub. Impvts. SA, 5.20%, 5/01/37	837,130
799		Escambia
Cnty. Hlth. Facs. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, 5.95%, 7/01/20, AMBAC	829,949
65		Gateway
Svcs. Cmnty. Dev. Dist., Pub. Impvts. SA, Stoneybrook Proj., 5.50%, 7/01/08	64,992
2,500		Halifax
Hosp. Med. Ctr., Hlth., Hosp. & Nursing Home RB, Ser. A, 5.25%, 6/01/26	2,544,825
1,500		Heritage
Harbour North Cmnty. Dev. Dist., Pub. Impvts. Wtr. Util. & Swr. Impvts. SA, 6.375%, 5/01/38	1,489,230

Principal Amount (000)		Description	Value
Florida(contd)
$ 1,635		Heritage
Harbour South Cmnty. Dev. Dist., Pub. Impvt. SA, Ser. A, 6.50%, 5/01/34	$ 1,798,860
		Highlands
Cnty. Hlth. Facs. Auth.,
6,500	1	Hlth.,
Hosp. & Nursing Home RB, Adventist Hlth. Sys./Sunbelt Proj., Ser. A, 6.00%, 11/15/11	7,127,445
4,000	3	Hlth.,
Hosp. & Nursing Home RB, Adventist Hlth. Sys./Sunbelt Proj., Ser. C, 5.25%, 11/15/36	4,080,680
		Hillsborough
Cnty. Indl. Dev. Auth.,
1,450		Elec., Pwr.
& Lt. RB, Tampa Elec. Co. Proj., 5.50%, 10/01/23	1,478,666
1,700	4	Hlth.,
Hosp. & Nursing Home RB, H. Lee Moffitt Cancer Ctr. Proj., 5.25%, 7/01/37	1,713,974
7,500		Jacksonville
Econ. Dev. Comm., Hlth., Hosp. & Nursing Home Impvts. RB, Mayo Clinic Jacksonville Proj., Ser. B, 5.50%, 11/15/36	7,843,125
2,280		Jacksonville
Hlth. Facs. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Southern Baptist Hosp. Proj., Ser. A, 5.00%, 8/15/37, FSA	2,324,050
5,000		JEA, Wtr.
Util. Impvts. Wtr. RB, Ser. A, 4.75%, 10/01/41, MBIA	5,001,700
1,600	1	Laguna
Lakes Cmnty. Dev. Dist., SA RB, Ser. A, 6.40%, 5/01/13	1,804,992
1,430	5	Lee Cnty.
Indl. Dev. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Alliance Cmnty. for Retirement Proj., 5.00%, 11/15/32	1,327,884
1,000		Lee Mem.
Hlth. Sys. Hosp., Hlth., Hosp. & Nursing Home Impvts. RB, Ser. A, 5.00%, 4/01/32, AMBAC	1,023,340
3,000		Miami Beach
Hlth. Facs. Auth., Hlth., Hosp. & Nursing Home Impvts. RB, Mt. Sinai Med. Ctr. Proj., 6.75%, 11/15/21	3,300,750
1,000		Miami-Dade
Cnty. Expwy. Auth., Hwy. Tolls RB, 5.125%, 7/01/25, FGIC	1,047,650
1,500		New River
Cmnty. Dev. Dist., Pub. Impvts. SA, Ser. B, 5.00%, 5/01/13	1,419,855
		Northern
Palm Beach Cnty. Impvt. Dist., Wtr. Util. Impvts. SA RB, Wtr. Ctrl. & Impvt. Unit Dev. 43 Proj.,
1,155	1	6.10%, 8/01/11	1,253,602
295		6.10%, 8/01/21	304,269
3,500	1	6.125%, 8/01/11	3,844,295
1,000		Orange
Cnty. Edl. Facs Auth., Univ. & Coll. Impvts. RB, Rollins Coll. Proj., 5.25%, 12/01/27, AMBAC	1,066,070
		Orange
Cnty. Hlth. Facs. Auth., Misc. RB, Orlando Lutheran Towers Proj.,
655		5.375%,
7/01/20	637,073
600		5.70%,
7/01/26	593,160
1,000		Orange
Cnty. Sch. Brd., Sch. Impvts. Lease COP, Ser. A, 5.00%, 8/01/32, FGIC	1,027,750
		Palm Beach
Cnty. Sch. Brd.,
2,500		Lease
Approp. COP, Ser. B, 5.00%, 8/01/25, AMBAC	2,589,425
1,000		Sch.
Impvts. Lease COP, Ser. A, 5.00%, 8/01/29, FGIC	1,023,500

| See Notes to Financial Statements. — ANNUAL
REPORT | OCTOBER
31, 2007 | 27 |
| --- | --- | --- |

| Portfolio of
Investments as
of October 31, 2007 |
| --- |
| (Percentages shown are based on Net
Assets) |

Principal Amount (000)		Description	Value
Florida(contd)
$ 600		Pine Ridge
Plantation Cmnty. Dev. Dist., Wtr. Util. Impvts. SA, Ser. B, 5.00%, 5/01/11	$ 576,018
750		South
Florida Wtr. Mgmt. Dist., Wtr. Util. Impvts. Lease Approp. COP, 5.00%, 10/01/36, AMBAC	767,302
		South Miami
Hlth. Facs. Auth., Hlth., Hosp. & Nursing Home RB, Baptist Hlth. Proj.,
1,000		5.00%,
8/15/32	1,006,850
12,000	1	5.25%,
2/01/13	12,921,000
2,700		Sumter
Cnty. Indl. Dev. Auth., Indl. Impvts. RB, North Sumter Util. Co. LLC Proj., 6.80%, 10/01/32, AMT	2,742,768
1,250		Tolomato
Cmnty. Dev. Dist., Pub. Impvts. Recreational Fac. Impvts. SA, 6.55%, 5/01/27	1,250,000
1,000		Univ. of
North Florida Fing. Corp., Univ. & Coll. Impvts. Lease RB, Hsg. Proj., 5.00%, 11/01/32, FGIC	1,036,080
		Vlg. Cmnty.
Dev. Dist. No. 5, Pub. Impvts. SA,
2,955		Ser. A,
6.00%, 5/01/22	3,165,160
1,420		Ser. A,
6.50%, 5/01/33	1,562,312
1,795		Vlg. Ctr.
Cmnty. Dev. Dist., Recreational Fac. Impvts. RB, Ser. A, 5.00%, 11/01/32, MBIA	1,836,805
2,000		Volusia
Cnty. Edl. Fac. Auth., Univ. & Coll. Impvts. RB, Embry Riddle Aeronautical Proj., Ser. A, 5.75%, 10/15/29	2,030,820
1,000		Watergrass
Cmnty. Dev. Dist., Pub. Impvts. SA, Ser. B, 5.125%, 11/01/14	937,000
			144,700,900
Puerto Rico10.2%
4,980		Comnwlth.,
Pub. Impvt. Fuel Sales Tax GO, Ser. A, 5.125%, 7/01/31	5,045,188
1,000		Elec. Pwr.
Auth., Elec., Pwr. & Lt. Impvts. RB, Ser. TT, 5.00%, 7/01/37	1,015,260
4,000	1	Pub. Fin.
Corp., Cash Flow Mgmt. Misc. RB, Ser. E, 5.70%, 2/01/10	4,194,760
			10,255,208
		Total Long-Term Investments (cost $150,415,557)	156,180,176

Shares (000)
MONEY MARKET FUND1.7%
1,763	6,7	CMA Florida
Mun. Money Fund, 2.81% (cost $1,762,997)	1,762,997
Total Investments157.0% (cost $152,178,554 8 )		$	157,943,173
Other assets in excess of
liabilities0.2%			176,124
Preferred shares at redemption value, including dividends payable(57.2)%			(57,555,518	)
Net Assets Applicable to Common
Shareholders100%		$	100,563,779

| 1 | This bond is prerefunded. U.S. government securities, held
in escrow, are used to pay interest on this security, as well as retire the
bond in full at the date indicated, typically at a premium to par. |
| --- | --- |
| 2 | Security is collateralized by Municipal or U.S. Treasury
obligations. |
| 3 | Variable rate security. Rate shown is interest rate as of
October 31, 2007. |
| 4 | When-issued security. |
| 5 | Illiquid security. As of October 31, 2007, the Trust held
1.3% of its net assets, with a current market value of $1,327,884, in these
securities. |
| 6 | Represents an investment in an affiliate. |
| 7 | Represents current yield as of October 31, 2007. |
| 8 | Cost for federal income tax purposes is $152,178,381. The
net unrealized appreciation on a tax basis is $5,764,792, consisting of
$6,495,883 gross unrealized appreciation and $731,091 gross unrealized
depreciation. |

| See Notes to Financial Statements. — 28 | ANNUAL
REPORT | OCTOBER
31, 2007 |
| --- | --- | --- |

Portfolio of Investments as of October 31, 2007
(Percentages
shown are based on Net Assets)

Principal Amount (000)		Description	Value
LONG-TERM
INVESTMENTS152.4%
Multi-State7.6%
$ 1,000	1,2	Charter Mac Equity Issuer Trust, Ser. A, 6.625%, 6/30/49	$ 1,036,990
New Jersey126.4%
150		Burlington Cnty. Brdg. Comm., Hlth., Hosp. & Nursing Home RB, The Evergreens Proj., 5.625%, 1/01/38	147,950
1,000		Delaware River Port Auth. of Pennsylvania & New Jersey, Hwy. Impvts. Hwy. Tolls RB, 5.75%, 1/01/26, FSA	1,038,020
		Econ. Dev. Auth.,
1,000		Econ. Impvts. Misc. RB, Cigarette Tax Proj., 5.75%, 6/15/34	1,050,970
60		Hlth., Hosp. & Nursing Home Impvts. RB, Lions Gate Proj., Ser. A, 5.75%, 1/01/25	60,555
110		Hlth., Hosp. & Nursing Home Impvts. RB, Lions Gate Proj., Ser. A, 5.875%, 1/01/37	110,085
140		Hlth., Hosp. & Nursing Home RB, Seabrook Vlg., Inc. Proj., 5.25%, 11/15/26	132,423
1,000		Hlth., Hosp. & Nursing Home RB, Winchester Garden Proj., Ser. A, 5.80%, 11/01/31	1,017,820
925	3	Port, Arpt. & Marina Impvts. RB, Contl. Airlines, Inc. Proj., 7.00%, 11/15/30, AMT	959,049
100		Pub. Impvts. Misc. RB, Newark Downtown Dist. Mgt. Corp. Proj., 5.125%, 6/15/37	97,685
500	3	Rec. Recovery Impvts. RB, Wst. Mgmt., Inc. Proj., Ser. A, 5.30%, 6/01/15, AMT	514,515
300		Sch. Impvts. Misc. RB, Ser. U, 5.00%, 9/01/37, AMBAC	313,008
900		Trans. Impvts. RB, New Jersey Econ. Transp. Proj., Ser. A, 5.75%, 5/01/10, FSA	948,951
250		Wtr. Util. Impvts. RB, American Wtr. Co. Proj., Ser. A, 5.25%, 11/01/32, AMBAC	255,675
		Edl. Facs. Auth.,
100		Coll. & Univ. RB, Georgian Court Univ. Proj., Ser. D, 5.00%, 7/01/33	98,430
200		Univ. & Coll. Impvts. RB, Richard Stockton Coll. Proj., Ser. F, 5.00%, 7/01/31, MBIA	208,412
100		Univ. & Coll. Impvts. RB, Rowan Univ. Proj., Ser. G, 4.50%, 7/01/31, MBIA	99,850
250		Univ. & Coll. RB, Ramapo Coll. Proj., Ser. I, 4.25%, 7/01/31, AMBAC	240,520
100		Univ. & Coll. RB, Rowan Univ. Proj., Ser. B, 4.25%, 7/01/34, FGIC	94,810
250		Essex Cnty. Impvt. Auth., Port, Arpt. & Marina RB, 5.00%, 11/01/25, MBIA, AMT	256,330
		Hlth. Care Facs. Fing. Auth.,
1,000		Hlth., Hosp. & Nursing Home Impvts. RB, Hackensack Univ. Med. Ctr. Proj., 6.00%, 1/01/25	1,036,290
250		Hlth., Hosp. & Nursing Home RB, Saint Barnabas Hlth. Care Sys. Proj., 5.00%, 7/01/29	241,010
500		Hlth., Hosp. & Nursing Home RB, Saint Barnabas Hlth. Care Sys. Proj., Zero Coupon, 7/01/30	131,210
840		Hlth., Hosp. & Nursing Home RB, Saint Barnabas Hlth. Care Sys. Proj., Zero Coupon, 7/01/36	152,141
900		Hlth., Hosp. & Nursing Home RB, Saint Barnabas Hlth. Care Sys. Proj., Ser. B, Zero Coupon, 7/01/37	153,135
1,000		Hlth., Hosp. & Nursing Home RB, Saint Josephs
Hosp. & Med. Ctr. Proj., 5.75%, 7/01/16, CONNIE LEE	1,011,400
1,000		Hudson Cnty. Impvt. Auth., Recreational Fac. Impvts. Misc. RB, Ser. A-1, Zero Coupon, 12/15/32, MBIA	297,100

Principal Amount (000)		Description	Value
New
Jersey(contd)
		Middlesex Cnty. Impvt. Auth.,
$ 200		Pub. Impvts. Hotel Occupancy Tax RB, Heldrich Associates LLC Proj., Ser. B, 6.25%, 1/01/37	$ 198,388
1,000		Univ. & Coll. Impvts. RB, Student Hsg. Urban Renewal Proj., Ser. A, 5.00%, 8/15/35	988,080
375		Newark Hsg. Auth., Lease RB, Newark Redev. Proj., 4.375%, 1/01/37, MBIA	363,262
500		Old Brdg. Twnshp. Brd. of Ed., Ad Valorem Ppty. Tax GO, 4.375%, 7/15/32, MBIA	491,660
1,000		Passaic Valley Sewage Commissioners, Swr. GO, Ser. E, 5.75%, 12/01/21, AMBAC	1,051,830
100	4	Perth Amboy, Ad Valorem Ppty. Tax GO, 4.50%, 7/01/34, FSA	81,721
500		Port Auth. of New York & New Jersey, Port, Arpt. & Marina RB, Ser. 132, 5.00%, 9/01/33	515,985
300		Rutgers St. Univ., Univ. & Coll. Impvts. RB, Ser.
E, 5.00%, 5/01/34, FGIC	310,029
100		Salem Cnty. Impvt. Auth., Econ. Impvts. Pkg. Fac. Impvts. RB, Finlaw St. Off. Bldg. Proj., 5.25%, 8/15/38, FSA	106,204
490		South Jersey Transp. Auth., Hwy. Impvts. Trans. RB, Ser. A, 4.50%, 11/01/35, FGIC	486,913
		Tobacco Settlement Fing. Corp.,
750	5	Pub. Impvts. Tobacco Settlement Funded RB, 6.125%, 6/01/12	828,997
600		Tobacco Settlement Funded RB, Ser. 1B, Zero Coupon, 6/01/41	66,036
		Tpke. Auth., Hwy. Tolls RB,
840	6	Ser. C, 6.50%, 1/01/16, AMBAC	967,353
160		Ser. C, 6.50%, 1/01/16, AMBAC	183,766
			17,307,568
Puerto
Rico18.4%
500		Comnwlth., Pub. Impvts. Ad Valorem Ppty. Tax GO, Ser. A, 5.25%, 7/01/30	518,275
		Elec. Pwr. Auth., Elec., Pwr. & Lt. Impvts.
RB,
350	5	Ser. RR, 5.00%, 7/01/15, FGIC	381,332
250		Ser. TT, 5.00%, 7/01/32	254,783
80		Hwy. & Transp. Auth., Hwy. Tolls RB, Ser. L, 5.25%, 7/01/38, AMBAC	89,348
600		Indl. Tourist Edl. Med. & Env. Ctrl. Facs. Fing. Auth., Univ. & Coll. Impvts. RB, Ana G. Mendez Univ. Sys. Proj., 5.00%, 3/01/26	589,362
		Infrastructure Fing. Auth.,
500		Pub. Impvts. ST, Ser. B, 5.00%, 7/01/31	506,990
795		Swr.
Impvts. Sales Tax RB, Ser. A, Zero Coupon, 7/01/37, AMBAC	188,757
			2,528,847
		Total
Long-Term Investments (cost $20,467,712)	20,873,405

| See Notes
to Financial Statements. — ANNUAL
REPORT | OCTOBER 31, 2007 | 29 |
| --- | --- | --- |

Portfolio of Investments as of October 31, 2007
(Percentages
shown are based on Net Assets)

Shares (000)
MONEY MARKET FUND0.1%
4	7,8	CMA New Jersey Mun. Money Fund, 2.88% (cost $4,424)	4,424
Total
Investments152.5% (cost $20,472,136 9 )		$	20,877,829
Other assets in
excess of liabilities2.3%			317,011
Preferred shares at redemption value,
including dividends payable(54.8)%			(7,500,618	)
Net Assets
Applicable to Common Shareholders100%		$	13,694,222

| 1 | Security is not registered under
the Securities Act of 1933. These securities may be resold in transactions in
accordance with Rule 144A under that Act, to qualified institutional buyers.
As of October 31, 2007, the Trust held 7.6% of its net assets, with a current
market value of $1,036,990, in securities restricted as to resale. |
| --- | --- |
| 2 | Security represents a beneficial
interest in a trust. The collateral deposited into the trust is federally
tax-exempt revenue bonds issued by various state or local governments, or
their respective agencies or authorities. The security is subject to
remarketing prior to its stated maturity, and is subject to mandatory
redemption at maturity. |
| 3 | Variable rate security. Rate
shown is interest rate as of October 31, 2007. |
| 4 | Represents a step up bond; the
interst rate shown reflects the effective yield at the time of purchase. |
| 5 | This bond is prerefunded. U.S.
government securities, held in escrow, are used to pay interest on this
security, as well as retire the bond in full at the date indicated, typically
at a premium to par. |
| 6 | Security is collateralized by
Municipal or U.S. Treasury obligations. |
| 7 | Represents an investment in an
affiliate. |
| 8 | Represents current yield as of
October 31, 2007. |
| 9 | Cost for federal income tax
purposes is $20,410,588. The net unrealized appreciation on a tax basis is
$467,241, consisting of $724,973 gross unrealized appreciation and $257,732
gross unrealized depreciation. |

| See Notes to Financial Statements. — 30 | ANNUAL
REPORT | OCTOBER 31, 2007 |
| --- | --- | --- |

| Portfolio of
Investments as of October 31, 2007 |
| --- |
| (Percentages shown are based on Net Assets) |

Principal Amount (000)		Description	Value
LONG-TERM
INVESTMENTS153.0%
Multi-State13.0%
		Charter Mac Equity Issuer Trust,
$ 7,000	1,2	Ser. A-2, 6.30%, 6/30/49	$ 7,220,430
2,500	1,2	Ser. B-1, 6.80%, 11/30/50	2,653,800
		MuniMae TE Bd. Subsidiary LLC,
3,000	1,2	Ser. A, 6.30%, 6/30/49	3,090,150
2,000	2	Ser. B, 6.80%, 6/30/50	2,120,220
			15,084,600
New
Jersey121.5%
1,000		Burlington Cnty. Brdg. Comm., Hlth., Hosp. & Nursing Home RB, The Evergreens Proj., 5.625%, 1/01/38	986,330
5,340	3	Cherry Hill Twnshp., Pub. Impvts. Ad Valorem Ppty. Tax GO, 5.00%, 7/15/11	5,615,811
		City of Vineland, Elec., Pwr. & Lt. Impvts. Ad Valorem Ppty. Tax GO,
1,500		5.30%, 5/15/30, MBIA, AMT	1,537,935
1,500		5.375%, 5/15/31, MBIA, AMT	1,541,475
		Econ. Dev. Auth.,
5,000		Econ. Impvts. Elec., Pwr. & Lt.
RB, Kapkowski Rd. Landfill Proj., 6.50%, 4/01/31, AMT	5,582,800
5,000		Econ. Impvts. Misc. RB, Cigarette Tax
Proj., 5.75%, 6/15/34	5,254,850
500		Hlth., Hosp. & Nursing Home Impvts.
RB, Lions Gate Proj., Ser. A, 5.75%, 1/01/25	504,625
855		Hlth., Hosp. & Nursing Home Impvts.
RB, Lions Gate Proj., Ser. A, 5.875%, 1/01/37	855,658
2,630		Hlth., Hosp. & Nursing Home RB,
Fellowship Vlg., Inc. Proj., Ser. C., 5.50%, 1/01/18	2,667,109
2,000		Hlth., Hosp. & Nursing Home RB,
Masonic Charity Fndtn. Proj., 5.50%, 6/01/31	2,082,660
860		Hlth., Hosp. & Nursing Home RB,
Seabrook Vlg., Inc. Proj., 5.25%, 11/15/26	813,457
930		Hlth., Hosp. & Nursing Home RB,
Seabrook Vlg., Inc. Proj., 5.25%, 11/15/36	857,330
4,050		Hlth., Hosp. & Nursing Home RB,
Winchester Gardens Proj., Ser. A, 5.75%, 11/01/24	4,157,811
1,900		Local Hsg. RB, Victoria Hlth. Corp.
Proj., Ser. A, 5.20%, 12/20/36	1,968,343
3,450	4	Port, Arpt. & Marina Impvts. RB,
Contl. Airlines, Inc. Proj., 7.00%, 11/15/30, AMT	3,576,994
2,000	4	Port, Arpt. & Marina Impvts. RB,
Contl. Airlines, Inc. Proj., 7.20%, 11/15/30, AMT	2,084,660
500		RB, Cigarette Tax Proj., 5.75%,
6/15/29	543,170
2,000	4	Rec. Recovery Impvts. RB, Wst. Mgmt.,
Inc. Proj., Ser. A, 5.30%, 6/01/15, AMT	2,058,060
2,500		SA, Kapkowski Rd. Landfill Proj., 6.50%,
4/01/28	2,837,525
700		Sch. Impvts. Misc. RB, Ser. U, 5.00%,
9/01/37, AMBAC	730,352
		Edl. Facs. Auth.,
250		Coll. & Univ. RB, Georgian Court
Univ. Proj., Ser. D, 5.00%, 7/01/33	246,075
1,000		Local Hsg. RB, Fairleigh Dickinson Univ.
Proj., Ser. C, 5.50%, 7/01/23	1,026,270
2,000		Local Hsg. RB, Fairleigh Dickinson Univ.
Proj., Ser. C, 6.00%, 7/01/20	2,138,920
100		Univ. & Coll. Impvts. Lease RB, Kean
Univ. Proj., Ser. D, 5.00%, 7/01/32, FGIC	104,517
500		Univ. & Coll. Impvts. Lease RB, Kean
Univ. Proj., Ser. D, 5.00%, 7/01/39, FGIC	520,465
1,000		Univ. & Coll. Impvts. RB, Drew Univ.
Proj., Ser. D, 5.00%, 7/01/37, MBIA	1,042,770

Principal Amount (000)		Description	Value
New
Jersey(contd)
$ 3,000		Univ. & Coll. Impvts. RB, Fairleigh Dickinson Univ. Proj., Ser. D, 6.00%, 7/01/25	$ 3,146,220
2,120	3	Univ. & Coll. Impvts. RB, Georgian Court Coll. Proj., Ser. C, 6.50%, 7/01/13	2,424,305
1,250		Univ. & Coll. Impvts. RB, Richard Stockton Coll. Proj., Ser. F, 5.00%, 7/01/31, MBIA	1,302,575
500		Univ. & Coll. RB, Ramapo Coll. Proj.,
		Ser. I, 4.25%, 7/01/31, AMBAC	481,040
1,000		Egg Harbor Twnshp. Sch. Dist., Ad Valorem Ppty. Tax GO, 4.125%, 4/01/30, FSA	949,260
12,600		Garden St. Presvtn. Trust, Recreational Fac. Impvts. RB, Open Space & Farmland Presvtn. Proj., Ser. B, Zero Coupon, 11/01/26, FSA	5,241,474
		Hlth. Care Facs. Fing. Auth.,
3,000	3	Hlth., Hosp. & Nursing Home Impvts. RB, Catholic Hlth. East. Proj., Ser. A, 5.375%, 11/15/12	3,250,530
10,000		Hlth., Hosp. & Nursing Home Impvts. RB, Kennedy Hlth. Sys. Proj., 5.625%, 7/01/31	10,239,900
7,460	3	Hlth., Hosp. & Nursing Home Impvts. RB, South Jersey Hosp. Sys. Proj., 6.00%, 7/01/12	8,202,195
1,995	3	Hlth., Hosp. & Nursing Home RB, Atlantic City Med. Ctr. Proj., 5.75%, 7/01/12	2,179,418
2,505		Hlth., Hosp. & Nursing Home RB, Atlantic City Med. Ctr. Proj., 5.75%, 7/01/25	2,617,099
750		Hlth., Hosp. & Nursing Home RB, Saint Barnabas Hlth. Care Sys. Proj., 5.00%, 7/01/29	723,030
2,500		Hlth., Hosp. & Nursing Home RB, Saint Barnabas
Hlth. Care Sys. Proj., Zero Coupon, 7/01/30	656,050
7,700		Hlth., Hosp. & Nursing Home RB, Saint Barnabas
Hlth. Care Sys. Proj., Zero Coupon, 7/01/36	1,394,624
7,250		Hlth., Hosp. & Nursing Home RB, Saint Barnabas
Hlth. Care Sys. Proj., Ser. B, Zero Coupon, 7/01/37	1,233,588
1,650		Hlth., Hosp. & Nursing Home RB, South Jersey Hosp., Inc. Proj., 5.00%, 7/01/46	1,650,924
700		Hsg. & Mtg. Fin. Agcy., Local or Gtd. Hsg. RB, 4.70%, 10/01/37, AMT	658,259
		Middlesex Cnty. Impvt. Auth.,
4,400		Local Multi-Fam. Hsg. RB, New Brunswick Apts. LLC Proj., 5.30%, 8/01/35, AMT	4,441,888
1,400	5	Local Multi-Fam. Hsg. RB, Skyline Tower Urban Renewal Proj., 5.35%, 7/01/34, AMT	1,431,024
1,790		Pub. Impvts. Hotel Occupancy Tax RB, Heldrich Associates LLC Proj., Ser. B, 6.25%, 1/01/37	1,775,573
2,500		Middlesex Cnty. Poll. Ctrl. Auth., Indl. Impvts. RB, Hess Corp. Proj., 6.05%, 9/15/34	2,592,075
1,875		Newark Hlth. Care Fac., Hlth., Hosp. & Nursing Home RB, New Cmnty. Urban Renewal Proj., Ser. A, 5.20%, 6/01/30	1,952,025
3,250		Newark Hsg. Auth., Lease RB, Newark Redev. Proj., 4.375%, 1/01/37, MBIA	3,148,275
		Perth Amboy, Ad Valorem Ppty. Tax GO,
1,075	6	4.50%, 7/01/34, FSA	878,501
175	6	4.50%, 7/01/35, FSA	142,756
6,000		Port Auth. of New York & New Jersey, Port, Arpt.
& Marina Impvts. RB, JFK Intl. Air Term. LLC Proj., 5.75%, 12/01/22, MBIA, AMT	6,128,160
2,000		Rahway Valley Swr. Auth., Swr. Impvts. RB, Cap. Apprec. Proj., Ser. A, Zero Coupon, 9/01/33, MBIA	578,480
500		Rutgers St. Univ., Univ. & Coll. Impvts. RB, Ser.
E, 5.00%, 5/01/34, FGIC	516,715
225		Salem Cnty. Impvt. Auth., Econ Impvts. Pkg. Fac. Impvts. RB, Finlaw St. Off. Bldg. Proj., 5.25%, 8/15/38, FSA	238,959

| See Notes to Financial Statements. — ANNUAL
REPORT | OCTOBER 31, 2007 | 31 |
| --- | --- | --- |

| Portfolio of
Investments as of October 31, 2007 |
| --- |
| (Percentages shown are based on Net
Assets) |

Principal Amount (000)		Description	Value
New
Jersey(contd)
		Tobacco Settlement Fing. Corp.,
$ 10,500	3	Pub. Impvts. Tobacco Settlement Funded
RB, 6.125%, 6/01/12	$ 11,605,965
1,500		Tobacco Settlement Funded RB, Ser. 1A, 5.00%, 6/01/41	1,284,255
3,300		Tobacco Settlement Funded RB, Ser. 1B, Zero Coupon, 6/01/41	363,198
4,000		Transp. Trust Fund Auth., Trans. Impvts.
RB, Ser. C, Zero Coupon, 12/15/32, FSA	1,208,960
		Trenton Pkg. Auth., Auto Pkg. RB,
3,465		5.00%, 4/01/25, FGIC	3,577,855
1,500		5.00%, 4/01/30, FGIC	1,528,680
			141,079,807
Puerto
Rico18.5%
1,000		Elec. Pwr. Auth., Elec., Pwr. & Lt. Impvts. RB, Ser. TT, 5.00%, 7/01/32	1,019,130
		Hsg. Fin. Corp.,
2,550		Local or Gtd. Hsg. RB, Ser. A, 5.20%,
12/01/33	2,591,489
2,545		St. Sngl. Fam. Hsg. RB, Ser. B, 5.30%,
12/01/28, AMT	2,580,477
3,500	3	Hwy.
& Transp. Auth., Hwy. Impvts. Hwy. Tolls RB, Ser. D, 5.25%, 7/01/12	3,758,300
6,000		Infrastructure Fing. Auth., Swr. Impvts. Sales Tax RB, Ser. A, Zero Coupon, 7/01/37, AMBAC	1,424,580
		Pub. Bldgs. Auth., Pub. Impvts.
Lease RB,
3,765	3	Ser. D, 5.25%, 7/01/12	4,029,491
1,735		Ser. D, 5.25%, 7/01/36	1,768,624
5,000	4	Ser. D, 5.28%, 7/01/31, AMBAC	4,313,600
			21,485,691
		Total Long-Term
Investments (cost $169,517,291)	177,650,098
Shares (000)
MONEY MARKET
FUND0.2%
223	7,8	CMA New Jersey Mun. Money Fund, 2.88% (cost $223,181)	223,181
Total
Investments153.2% (cost $169,740,472 9 )			$ 177,873,279
Other assets in
excess of liabilities1.8%			2,113,533
Preferred shares at redemption value,
including dividends payable(55.0)%			(63,834,605	)
Net Assets
Applicable to Common Shareholders100%			$ 116,152,207

| 1 | Security is not registered under
the Securities Act of 1933. These securities may be resold in transactions in
accordance with Rule 144A under that Act, to qualified institutional buyers.
As of October 31, 2007, the Trust held 11.2% of its net assets, with a
current market value of $12,964,380, in securities restricted as to resale. |
| --- | --- |
| 2 | Security represents a beneficial
interest in a trust. The collateral deposited into the trust is federally
tax-exempt revenue bonds issued by various state or local governments, or
their respective agencies or authorities. The security is subject to
remarketing prior to its stated maturity, and is subject to mandatory
redemption at maturity. |
| 3 | This bond is prerefunded. U.S.
government securities, held in escrow, are used to pay interest on this
security, as well as retire the bond in full at the date indicated, typically
at a premium to par. |
| 4 | Variable rate security. Rate
shown is interest rate as of October 31, 2007. |
| 5 | Security, or a portion thereof,
with a market value of $265,762 has been pledged as collateral for swap
contracts. |
| 6 | Represents a step up bond; the
interest rate shown reflects the effective yield at the time of purchase. |
| 7 | Represents an investment in an
affiliate. |
| 8 | Represents current yield as of
October 31, 2007. |
| 9 | Cost for federal income tax
purposes is $168,841,316. The net unrealized appreciation on a tax basis is
$9,031,963, consisting of $10,407,066 gross unrealized appreciation and
$1,375,103 gross unrealized depreciation. |

| See Notes to Financial Statements. — 32 | ANNUAL
REPORT | OCTOBER 31, 2007 |
| --- | --- | --- |

| Portfolio of
Investments as
of October 31, 2007 |
| --- |
| (Percentages shown are based on Net Assets) |

Principal Amount (000)		Description
LONG-TERM
INVESTMENTS149.0%
New
York135.9%
		Albany
Indl. Dev. Agcy., Sch. Impvts. Lease Approp. RB, New Covenant Charter Sch. Proj.,
$ 95	1	Ser. A,
7.00%, 5/01/25	$ 79,726
60	1	Ser. A,
7.00%, 5/01/35	50,064
1,000		Albany Mun.
Wtr. Fin. Auth., Wtr. Util. Impvts. Wtr. RB, Ser. B, 5.00%, 12/01/33, MBIA	1,005,910
		City of New
York, Ad Valorem Ppty. Tax GO,
990	2	Ser. A,
6.00%, 5/15/10	1,061,171
10		Ser. A,
6.00%, 5/15/30	10,593
1,000		Convention
Ctr. Operating Corp., Recreational Fac. Impvts. Hotel Occupancy Tax RB, Hotel Unit Fee Secured Proj., 5.00%, 11/15/44, AMBAC	1,022,160
		Dorm.
Auth.,
750		Hlth.,
Hosp. & Nursing Home Impvts. RB, Lutheran Med. Ctr. Proj., 5.00%, 8/01/31, MBIA	765,555
1,000		Hlth.,
Hosp. & Nursing Home RB, Kateri Residence Proj., 5.00%, 7/01/22	1,032,780
1,000		Hlth.,
Hosp. & Nursing Home RB, Mount Sinai Hosp. Proj., Ser. A, 6.50%, 7/01/25	1,047,740
1,005		Misc. RB,
St. Univ. Edl. Facs. Proj., 5.25%, 5/15/15, AMBAC	1,088,847
750	2	Univ. &
Coll. Impvts. RB, Univ. of Rochester Proj., Ser. B, 5.625%, 7/01/09	783,367
100		Genesee
Cnty. Indl. Dev. Agcy., Hlth., Hosp. & Nursing Home RB, United Mem. Med. Ctr. Proj., 5.00%, 12/01/27	93,157
150		Hsg. Fin.
Agcy., St. Multi-Fam. Hsg. RB, Kensico Terrace Apts. Proj., Ser. B, 4.95%, 2/15/38, AMT	145,637
150		Hudson
Yards Infrastructure Corp., Trans. Impvts. Misc. RB, Ser. A, 4.50%, 2/15/47, MBIA	142,832
175		Liberty
Dev. Corp., Recreational Fac. Impvts. RB, Nat. Sports Museum Proj., Ser. A, 6.125%, 2/15/19	177,945
2,000		Madison
Cnty. Indl. Dev. Agcy., Univ. & Coll. Impvts. RB, Colgate Univ. Proj., Ser. B, 5.00%, 7/01/23	2,077,140
250		Met.
Transp. Auth., Trans. RB, Ser. B, 4.50%, 11/15/32, FSA	245,935
100		Mtg. Agcy.,
Local or Gtd. Hsg. RB, Ser. 143, 4.90%, 10/01/37, AMT	96,349
		New York
City Hsg. Dev. Corp.,
250		Local or
Gtd. Hsg. RB, Ser. B-1, 5.15%, 11/01/37, AMT	250,558
500		Local or
Gtd. Hsg. RB, Ser. J-2, 4.75%, 11/01/27, AMT	482,470
1,000		St.
Multi-Fam. Hsg. RB, Ser. A, 5.25%, 5/01/30	1,029,370
		New York
City Indl. Dev. Agcy.,
250		Coll. &
Univ. RB, Polytechnic Univ. Proj., 5.25%, 11/01/37, ACA	244,823
500		Econ.
Impvts. RB, IAC/Interactive Corp. Proj., 5.00%, 9/01/35	474,360
950	3	Port, Arpt.
& Marina Impvts. RB, American Airlines, Inc./JFK Intl. Arpt. Proj., 7.625%, 8/01/25, AMT	1,070,089
300	3	Port, Arpt.
& Marina Impvts. RB, American Airlines, Inc./JFK Intl. Arpt. Proj., 7.75%, 8/01/31, AMT	340,155
250		Recreational
Fac. Impvts. RB, Queens Baseball Stad. Pilot Proj., 5.00%, 1/01/39, AMBAC	258,150
600		Recreational
Fac. Impvts. RB, Queens Baseball Stad. Pilot Proj., 5.00%, 1/01/46, AMBAC	614,142
350		Recreational
Fac. Impvts. RB, Yankee Stad. Pilot Proj., 5.00%, 3/01/46, FGIC	358,004
		New York
City Mun. Wtr. Fin. Auth.,
1,000		Cash Flow
Mgmt. Wtr. RB, Ser. C, 5.125%, 6/15/33	1,035,550
250		Wtr. RB,
Ser. A, 4.25%, 6/15/33	233,085
250		Wtr. RB, Ser.
A, 4.25%, 6/15/39, FSA	231,483
1,000		Wtr. RB,
Ser. B, 5.00%, 6/15/36, FSA	1,029,520
1,815	2	New York
City Transl. Fin. Auth., Pub. Impvts. Sales Tax RB, Ser. B, 6.00%, 5/15/10	1,945,480

Principal Amount (000)		Description	Value
New
York(contd)
$ 955		Port Auth.
of New York & New Jersey, Port, Arpt. & Marina Impvts. RB, Contl. Airlines Proj., 9.125%, 12/01/15, AMT	$ 991,194
250		Rochester
Hsg. Auth., Local Multi-Fam. Hsg. RB, Andrews Terrace LLC Proj., 4.70%, 12/20/38, AMT	233,728
2,000		Sales Tax
Asset Receivables Corp., Pub. Impvts. Sales Tax RB, Ser. A, 5.00%, 10/15/32, AMBAC	2,077,260
500		Schenectady
Indl. Dev. Agcy., Univ. & Coll. RB, Union Coll. Proj., 5.00%, 7/01/31	517,020
115		Suffolk
Cnty. Indl. Dev. Agcy., Hlth., Hosp. & Nursing Home RB, Active Retirement Cmnty. Proj., 5.00%, 11/01/28	108,437
		Triborough
Brdg. & Tunl. Auth., Hwy. Tolls RB,
845	2	Ser. A,
5.00%, 1/01/12, MBIA	894,382
155		Ser. A,
5.00%, 1/01/32, MBIA	159,171
100		Twy. Auth.,
Hwy. Tolls Impvts. RB, Ser. H, 5.00%, 1/01/37, FGIC	104,203
			25,609,542
Puerto Rico13.1%
500		Childrens
Trust Fund, Tobacco Settlement Funded RB, 5.625%, 5/15/43	501,770
315		Comnwlth.,
Pub. Impvts. Ad Valorem Ppty. Tax GO, Ser. A, 5.00%, 7/01/34	317,463
800		Indl.
Tourist Edl. Med. & Env. Ctrl. Facs. Fing. Auth., Univ. & Coll. Impvts. RB, Ana G. Mendez Univ. Sys. Proj., 5.00%, 3/01/26	785,816
395		Infrastructure
Fing. Auth., Swr. & Wtr. Util. Impvts. Sales Tax RB, Ser. A, Zero Coupon, 7/01/44, AMBAC	64,180
745	2	Pub. Fin.
Corp., Cash Flow Mgmt. Misc. RB, Ser. E, 5.50%, 2/01/12	801,799
			2,471,028
		Total Long-Term Investments (cost $27,251,087)	28,080,570

Shares (000)
MONEY
MARKET FUND0.5%
107	4,5	CMA New
York Mun. Money Fund, 2.88% (cost $107,441)	107,441
Total Investments149.5% (cost
$27,358,528 6 )		$	28,188,011
Other assets in excess of
liabilities2.5%			463,142
Preferred shares at redemption value, including dividends payable(52.0)%			(9,802,738	)
Net Assets Applicable to Common
Shareholders100%		$	18,848,415

| 1 | Illiquid security. As of October 31, 2007, the Trust held
0.7% of its net assets, with a current market value of $129,790, in these
securities. |
| --- | --- |
| 2 | This bond is prerefunded. U.S. government securities, held
in escrow, are used to pay interest on this security, as well as retire the
bond in full at the date indicated, typically at a premium to par. |
| 3 | Variable rate security. Rate shown is interest rate as of
October 31, 2007. |
| 4 | Represents an investment in an affiliate. |
| 5 | Represents current yield as of October 31, 2007. |
| 6 | Cost for federal income tax purposes is $27,353,900. The
net unrealized appreciation on a tax basis is $834,111, consisting of
$1,016,364 gross unrealized appreciation and $182,253 gross unrealized
depreciation. |

| See Notes to Financial Statements. — ANNUAL
REPORT | OCTOBER
31, 2007 | 33 |
| --- | --- | --- |

| Portfolio of
Investments as
of October 31, 2007 |
| --- |
| (Percentages shown are based on Net Assets) |

Principal Amount (000)		Description	Value
LONG-TERM
INVESTMENTS155.2%
Multi-State11.2%
		Charter Mac
Equity Issuer Trust,
$ 6,000	1,2	Ser. A-2,
6.30%, 6/30/49	$ 6,188,940
5,500	1,2	Ser. B-1,
6.80%, 11/30/50	5,838,360
		MuniMae TE
Bd. Subsidiary LLC,
6,000	1,2	Ser. A,
6.30%, 6/30/49	6,180,300
3,000	2	Ser. B,
6.80%, 6/30/50	3,180,330
			21,387,930
New York132.6%
		Albany
Indl. Dev. Agcy., Sch. Impvts. Lease
		Approp. RB,
New Covenant Charter Sch. Proj.,
910	3	Ser. A,
7.00%, 5/01/25	763,690
590	3	Ser. A,
7.00%, 5/01/35	492,296
		City of New
York, Pub. Impvts. Ad Valorem Ppty. Tax GO,
6,000	4	Ser. C,
5.375%, 3/15/12	6,454,680
2,200	4	Ser. D,
5.375%, 6/01/12	2,374,174
4,000		Ser. D,
5.375%, 6/01/32	4,154,400
6,700		Cntys.
Tobacco Trust III, Misc. Tobacco Settlement Funded RB, 6.00%, 6/01/43	6,884,719
10,010		Convention
Ctr. Operating Corp., Recreational Fac. Impvts. Hotel Occupancy Tax RB, Hotel Unit Fee Secured Proj., 5.00%, 11/15/44, AMBAC	10,231,822
		Dorm.
Auth.,
1,000		Coll. &
Univ. RB, Mt. Sinai Sch. Med. New York Univ., 5.00%, 7/01/35, MBIA	1,038,780
4,855		Hlth.,
Hosp. & Nursing Home Impvts. RB, Mental Hlth. Svcs. Facs. Proj., 5.00%, 2/15/35, AMBAC	4,973,802
2,000	4	Hlth.,
Hosp. & Nursing Home Impvts. RB, North Shore Long Island Jewish Grp. Proj., 5.375%, 5/01/13	2,181,960
2,000	4	Hlth.,
Hosp. & Nursing Home Impvts. RB, North Shore Long Island Jewish Grp. Proj., 5.50%, 5/01/13	2,194,360
3,000		Hlth.,
Hosp. & Nursing Home RB, Mt. Sinai NYU Hlth. Proj., 5.50%, 7/01/26	3,022,830
9,000		Univ. &
Coll. Impvts. RB, New Sch. Univ. Proj., 5.00%, 7/01/41, MBIA	9,134,820
5,000		Univ. &
Coll. Impvts. RB, New York Univ. Proj., Ser. 2, 5.00%, 7/01/41, AMBAC	5,074,900
7,000		Dutchess
Cnty. Indl. Dev. Agcy., Coll. & Univ. RB, Bard Coll. Proj., Ser. A2, 4.50%, 8/01/36	6,590,710
500		Genesee
Cnty. Indl. Dev. Agcy., Hlth., Hosp. & Nursing Home RB, United Mem. Med. Ctr. Proj., 5.00%, 12/01/27	465,785
850		Hsg. Fin.
Agcy., St. Multi-Fam. Hsg. RB, Kensico Terrace Apts. Proj., Ser. B, 4.95%, 2/15/38, AMT	825,274
		Hudson
Yards Infrastructure Corp., Trans. Impvts. Misc. RB,
4,900		Ser. A,
4.50%, 2/15/47, MBIA	4,665,829
1,000		Ser. A,
5.00%, 2/15/47	1,014,030
		Liberty
Dev. Corp.,
7,000		Indl. Impvts. Misc. RB, Goldman
Sachs Grp., Inc. Proj., 5.25%, 10/01/35	7,436,660
1,740		Recreational
Fac. Impvts. RB, Nat. Sports Museum Proj., Ser. A, 6.125%, 2/15/19	1,769,284
		Long Island
Pwr. Auth., Elec., Pwr. & Lt. RB,
2,500		Ser. B,
5.00%, 12/01/35, CIFG	2,579,100
5,000		Ser. B,
5.00%, 12/01/35	5,129,600
2,000		Madison
Cnty. Indl. Dev. Agcy., Univ. & Coll. Impvts. RB, Colgate Univ. Proj., Ser. B, 5.00%, 7/01/33	2,050,420
		Met.
Transp. Auth.,
12,000		Trans. RB,
Ser. A, 5.00%, 11/15/30	12,267,600

Principal Amount (000)		Description
New
York(contd)
$ 12,000		Trans. RB,
Ser. A, 5.125%, 11/15/31	$ 12,323,640
		Mtg. Agcy., Local or Gtd. Hsg. RB,
5,615		Ser. 101,
5.40%, 4/01/32, AMT	5,669,915
15,500		Ser. A,
5.30%, 10/01/31, AMT	15,595,325
		New York City Indl. Dev. Agcy.,
750		Cash Flow
Mgmt. Lease RB, Marymount Sch. Proj., 5.125%, 9/01/21, ACA	756,263
2,000		Cash Flow
Mgmt. Lease RB, Marymount Sch. Proj., 5.25%, 9/01/31, ACA	1,986,400
3,000		Coll. &
Univ. RB, Polytechnic Univ. Proj., 5.25%, 11/01/37, ACA	2,937,870
2,000		Econ.
Impvts. RB, IAC/Interactive Corp. Proj., 5.00%, 9/01/35	1,897,440
1,550		Indl.
Impvts. RB, Royal Charter Presbyterian Proj., 5.25%, 12/15/32, FSA	1,642,891
14,850		Port, Arpt.
& Marina Impvts. Lease RB, Airis JFK I LLC Proj., Ser. A, 5.50%, 7/01/28, AMT	14,650,416
3,200	5	Port, Arpt.
& Marina Impvts. RB, American Airlines, Inc./JFK Intl. Arpt. Proj., 7.625%, 8/01/25, AMT	3,604,512
4,000	5	Port, Arpt.
& Marina Impvts. RB, American Airlines, Inc./JFK Intl. Arpt. Proj., 7.75%, 8/01/31, AMT	4,535,400
5,000		Recreational
Fac. Impvts. RB, Queens Baseball Stad. Pilot Proj., 5.00%, 1/01/36, AMBAC	5,163,000
1,500		Recreational
Fac. Impvts. RB, Queens Baseball Stad. Pilot Proj., 5.00%, 1/01/39, AMBAC	1,548,900
1,000		Recreational
Fac. Impvts. RB, Queens Baseball Stad. Pilot Proj., 5.00%, 1/01/46, AMBAC	1,023,570
1,000		Recreational
Fac. Impvts. RB, Yankee Stad. Pilot Proj., 5.00%, 3/01/36, MBIA	1,031,640
3,500		Recreational
Fac. Impvts. RB, Yankee Stad. Pilot Proj., 5.00%, 3/01/46, FGIC	3,580,045
		New York
City Mun. Wtr. Fin. Auth.,
4,000		Cash Flow
Mgmt. Wtr. RB, Ser. A, 5.00%, 6/15/32, FGIC	4,071,320
1,500		Wtr. RB,
Ser. A, 4.25%, 6/15/39, FSA	1,388,895
6,500		Wtr. RB,
Ser. C, 5.00%, 6/15/32	6,657,755
5,000		Wtr. RB,
Ser. D, 5.00%, 6/15/39	5,136,800
2,750		Wtr. Util.
Impvts. Wtr. RB, Second Gen. Resolution Proj., Ser. A, 4.50%, 6/15/37, MBIA	2,675,255
1,500		Wtr. Util.
Impvts. Wtr. RB, Ser. D, 5.00%, 6/15/38	1,544,385
		New York
City Transl. Fin. Auth.,
1,495	4	Pub.
Impvts. Income Tax RB, 5.00%, 5/01/09	1,543,901
500		Pub.
Impvts. Misc. Tax RB, Ser. S-1, 5.00%, 7/15/31, FGIC	520,935
1,700		Sch.
Impvts. Income Tax RB, Ser. S-2, 4.25%, 1/15/34, FGIC	1,591,149
		Port Auth.
of New York & New Jersey,
		Port, Arpt.
& Marina Impvts. RB,
8,815		Contl.
Airlines Proj., 9.125%, 12/01/15, AMT	9,149,088
7,000		JFK Intl.
Air Term. LLC Proj., 5.75%, 12/01/22, MBIA, AMT	7,149,520
900		Rec.
Recovery Impvts. GO., Ser. A, 4.125%, 3/01/37, FGIC	809,964
2,500		Rensselaer
Tobacco Sec. Corp., Misc. Tobacco Settlement Funded RB, Ser. A, 5.75%, 6/01/43	2,532,950
5,000		Rockland
Tobacco Asset Sec. Corp., Misc. Tobacco Settlement Funded RB, 5.75%, 8/15/43	5,068,300
		Suffolk
Cnty. Indl. Dev. Agcy.,
1,175		Hlth.,
Hosp. & Nursing Home RB, Active Retirement Cmnty. Proj., 5.00%, 11/01/28	1,107,943
7,000		Indl.
Impvts. RB, Keyspan-Port Jefferson Proj., 5.25%, 6/01/27, AMT	7,104,440

| See Notes to Financial Statements. — 34 | ANNUAL
REPORT | OCTOBER
31, 2007 |
| --- | --- | --- |

| Portfolio of
Investments as
of October 31, 2007 |
| --- |
| (Percentages shown are based on Net Assets) |

Principal Amount (000)		Description	Value
New
York(contd)
		TSASC,
Inc.,
$ 2,000	4	Cash Flow
Mgmt. Tobacco Settlement Funded RB, Ser. 1, 6.375%, 7/15/09	$ 2,114,140
5,000	4	Rec.
Recovery Impvts. Tobacco Settlement Funded RB, Ser. 1, 5.75%, 7/15/12	5,470,250
1,175		Twy. Auth.,
Hwy. Tolls Impvts. RB, Ser. H, 5.00%, 1/01/37, FGIC	1,224,385
2,500		Westchester
Cnty. Indl. Dev. Agcy., Private Primary Schs. RB, Winward Sch. Civic Fac. Proj., 5.25%, 10/01/31, RAA	2,522,750
2,000	4	Westchester
Tobacco Asset Sec., Cash Flow Mgmt. Tobacco Settlement Funded RB, 6.75%, 7/15/10	2,188,720
			253,291,597
Puerto Rico11.4%
		Pub. Bldgs.
Auth., Pub. Impvts. Lease RB,
4,400	4	Ser. D,
5.25%, 7/01/12	4,709,100
1,600		Ser. D,
5.25%, 7/01/36	1,631,008
		Pub. Fin.
Corp., Cash Flow Mgmt. Misc. RB,
7,475	4	Ser. E,
5.50%, 2/01/12	8,044,894
7,000	4	Ser. E,
5.70%, 2/01/10	7,340,830
			21,725,832
		Total Long-Term Investments (cost $288,605,274)	296,405,359

Shares (000)
MONEY MARKET
FUND0.0%
46	6,7	CMA New
York Mun. Money Fund, 2.88% (cost $46,883)	46,883
Total Investments155.2% (cost
$288,652,157 8 )		$	296,452,242
Other assets in excess of
liabilities2.3%			4,304,408
Preferred shares at redemption value, including dividends payable(57.5)%			(109,795,091	)
Net Assets Applicable to Common
Shareholders100%		$	190,961,559

| 1 | Security is not registered under the Securities Act of
1933. These securities may be resold in transactions in accordance with Rule
144A under that Act, to qualified institutional buyers. As of October 31,
2007, the Trust held 9.5% of its net assets, with a current market value of
$18,207,600, in securities restricted as to resale. |
| --- | --- |
| 2 | Security represents a beneficial interest in a trust. The
collateral deposited into the trust is federally tax-exempt revenue bonds
issued by various state or local governments, or their respective agencies or
authorities. The security is subject to remarketing prior to its respective
stated maturity, and is subject to mandatory redemption at maturity. |
| 3 | Illiquid security. As of October 31, 2007, the Trust held
0.7% of its net assets, with a current market value of $1,255,986, in these
securities. |
| 4 | This bond is prerefunded. U.S. government securities, held
in escrow, are used to pay interest on this security, as well as retire the
bond in full at the date indicated, typically at a premium to par. |
| 5 | Variable rate security. Rate shown is interest rate as of
October 31, 2007. |
| 6 | Represents an investment in an affiliate. |
| 7 | Represents current yield as of October 31, 2007. |
| 8 | Cost for federal income tax purposes is $287,872,904. The
net unrealized appreciation on a tax basis is $8,579,338, consisting of
$10,276,370 gross unrealized appreciation and $1,697,032 gross unrealized
depreciation. |

| See Notes to Financial Statements. — ANNUAL
REPORT | OCTOBER
31, 2007 | 35 |
| --- | --- | --- |

Statements of Assets and Liabilities

October 31, 2007	BlackRock Investment Quality Municipal Trust (BKN)
Assets
Investments
at value, unaffiliated 1	$ 385,558,473	$	1,005,012,565	$	351,871,073	$	20,704,741	$	347,423,411
Investments
at value, affiliated 2	5,500,000		2,600,000		2,600,000		417,505		6,844,361
Investments
in affiliates	96,876		142,801		916		20,497		53,495
Cash	4,587		67,046				128,689		17,019
Receivable
from investments sold	360,000		371,010		3,677,401
Receivable
from broker									100,000
Unrealized
appreciation on forward starting swaps	13,591		52,945
Interest
and dividend receivable	5,755,563		15,438,184		5,914,476		309,231		5,248,803
Prepaid
expenses					94,125
Other
assets	6,569						3,449
	397,295,659		1,023,684,551		364,157,991		21,584,112		359,687,089
Liabilities
Payable to
custodian					2,415
Payable for
investments purchased	1,251,526		2,717,561						184,963
Trust
certificates					177,527,503
Interest
expense and fees					2,334,617
Unrealized
depreciation on forward starting swaps	343,531		294,613		111,029
Dividends
payable - common shares	1,384,087		3,521,924		733,983		48,340		1,147,744
Investment
advisory fees payable	117,310		389,126		93,766		6,248		136,197
Administration
fees payable	50,325						1,826
Deferred
Trustees fees	96,876		142,801		916		20,497		53,495
Payable to
affiliates	38,630		33,916		1,923		808		26,462
Officers
& Trustees fees	7,830		15,979		3,628		4,364		9,296
Other
accrued expenses	168,334		326,037		186,881		41,701		196,177
	3,458,449		7,441,957		180,996,661		123,784		1,754,334
Preferred Shares at Redemption Value
$0.001 per
value per share, $25,000 liquidation value per share, including dividends
payable 3	146,564,821		375,261,855				7,504,171		131,993,468
Net Assets Applicable to Common
Shareholders
Net Assets
Applicable to Common Shareholders	$ 247,272,389	$	640,980,739	$	183,161,330	$	13,956,157	$	225,939,287
Composition
of Net Assets Applicable to Common Shareholders: Par value 4	$ 167,906	$	44,041	$	13,345	$	10,071	$	15,093
Paid-in
capital in excess of par	233,113,254		625,689,119		190,776,233		13,392,714		214,319,627
Undistributed
(distributions in excess of) net investment income	4,209,470		7,939,545		(536,602	)	(3,826	)	4,037,754
Accumulated
net realized gain (loss)	(799,096	)	(33,000,169	)	(48,720	)	(5,173	)	(7,360,872	)
Net
unrealized appreciation (depreciation)	10,580,855		40,308,203		(7,042,926	)	562,371		14,927,685
Net assets
applicable to common shareholders, October 31, 2007	$ 247,272,389	$	640,980,739	$	183,161,330	$	13,956,157	$	225,939,287
Net asset
value per common share 5	$ 14.73	$	14.55	$	13.72	$	13.86	$	14.97
1 Investments
at cost, unaffiliated	$ 374,647,678	$	964,462,694	$	358,802,970	$	20,142,370	$	332,495,726
2 Investments
at cost, affiliated	$ 5,500,000	$	2,600,000	$	2,600,000	$	417,505	$	6,844,361
3 Preferred
shares outstanding	5,862		15,005				300		5,278
4 Par value
per share	$ 0.01	$	0.001	$	0.001	$	0.01	$	0.001
5 Common shares
outstanding	16,790,647		44,040,985		13,345,152		1,007,093		15,093,040

| See Notes to Financial Statements. — 36 | ANNUAL
REPORT | OCTOBER
31, 2007 |
| --- | --- | --- |

October 31, 2007	BlackRock Florida Investment Quality Municipal Trust (RFA)									BlackRock New York Municipal Income Trust (BNY)
Assets
Investments
at value, unaffiliated 1	$ 24,015,002	$	156,180,176	$	20,873,405	$	177,650,098	$	28,080,570	$ 296,405,359
Investments
at value, affiliated 2	210,500		1,762,997		4,424		223,181		107,441	46,883
Investments
in affiliates	20,490		19,776		22,536		23,431		20,443	45,820
Cash			16,580		57,217		19,414		42,608	132,029
Receivable
from investments sold	5,000		205,000				15,000		45,000	528,426
Receivable
from broker
Unrealized
appreciation on forward starting swaps	2,628
Interest
and dividend receivable	312,994		2,368,732		364,813		2,869,095		508,155	4,907,533
Prepaid
expenses
Other
assets	3,449				3,449				3,449
	24,570,063		160,553,261		21,325,844		180,800,219		28,807,666	302,066,050
Liabilities
Payable to
custodian	5,807
Payable for
investments purchased	770,665		1,719,108
Trust
certificates
Interest
expense and fees
Unrealized
depreciation on forward starting swaps	21,886						729			2,826
Dividends
payable - common shares	54,100		503,516		68,595		596,956		91,595	951,544
Investment
advisory fees payable	6,952		59,144		6,272		68,685		8,502	114,696
Administration
fees payable	2,010				1,803				2,438
Deferred
Trustees fees	20,490		19,776		22,536		23,431		20,443	45,820
Payable to
affiliates	625		12,588		456		8,010		665	17,121
Officers
& Trustees fees	1,486		3,054		2,306		3,559		1,663	5,321
Other
accrued expenses	47,272		116,778		29,036		112,037		31,207	172,072
	931,293		2,433,964		131,004		813,407		156,513	1,309,400
Preferred Shares at Redemption Value
$0.001 per
value per share, $25,000 liquidation value per share, including dividends
payable 3	8,504,890		57,555,518		7,500,618		63,834,605		9,802,738	109,795,091
Net Assets Applicable to Common
Shareholders
Net Assets
Applicable to Common Shareholders	$ 15,133,880	$	100,563,779	$	13,694,222	$	116,152,207	$	18,848,415	$ 190,961,559
Composition
of Net Assets Applicable to Common Shareholders: Par value 4	$ 11,271	$	6,680	$	10,091	$	7,501	$	13,088	$ 12,635
Paid-in
capital in excess of par	15,001,008		94,784,781		13,109,109		106,598,049		17,677,924	179,432,630
Undistributed
(distributions in excess of) net investment income	1,915		1,230,692		224,395		2,639,891		146,107	4,448,108
Accumulated
net realized gain (loss)	(137,267	)	(1,222,993	)	(55,066	)	(1,225,312	)	181,813	(729,073	)
Net
unrealized appreciation (depreciation)	256,953		5,764,619		405,693		8,132,078		829,483	7,797,259
Net assets
applicable to common shareholders, October 31, 2007	$ 15,133,880	$	100,563,779	$	13,694,222	$	116,152,207	$	18,848,415	$ 190,961,559
Net asset
value per common share 5	$ 13.43	$	15.05	$	13.57	$	15.49	$	14.40	$ 15.11
1 Investments
at cost, unaffiliated	$ 23,738,791	$	150,415,557	$	20,467,712	$	169,517,291	$	27,251,087	$ 288,605,274
2 Investments
at cost, affiliated	$ 210,500	$	1,762,997	$	4,424	$	223,181	$	107,441	$ 46,883
3 Preferred
shares outstanding	340		2,302		300		2,552		392	4,390
4 Par value
per share	$ 0.01	$	0.001	$	0.01	$	0.001	$	0.010	$ 0.001
5 Common
shares outstanding	1,127,093		6,680,144		1,009,065		7,500,546		1,308,817	12,635,107

ANNUAL REPORT OCTOBER 31, 2007 37

S tatements of Operations

For the year ended October 31, 2007	BlackRock Investment Quality Municipal Trust (BKN)		BlackRock Municipal Income Trust (BFK)				BlackRock California Investment Quality Municipal Trust (RAA)		BlackRock California Municipal Income Trust (BFZ)
Investment Income
Interest and dividend income	$ 20,744,315		$ 54,822,778	$	17,498,486		$ 1,023,350		$ 18,329,741
Dividend income from investments in
affiliates	111,947		134,765		79,642		17,741		146,193
Income from affiliates	4,406		5,698		724		326		2,493
Total investment income	20,860,668		54,963,241		17,578,852		1,041,417		18,478,427
Expenses
Investment advisory	1,410,546		6,217,100		1,920,421		76,208		2,178,998
Administration	604,520						21,774
Transfer agent	19,471		15,514		11,753		11,786		13,554
Custodian	100,049		151,398		30,162		16,649		71,487
Reports to shareholders	51,548		123,525		37,865		5,461		35,657
Directors/Trustees	27,974		41,586		19,072		4,978		25,081
Registration	9,431		12,709		8,298		310		5,251
Independent accountants	38,617		43,339		38,724		24,169		38,255
Legal	40,226		80,592		22,054		6,637		31,878
Officers fees	5,978		15,506		4,365		336		5,449
Insurance	20,715		53,099		9,912		1,118		18,611
Auction agent	379,583		953,351				23,265		335,151
Deferred Trustees fees	4,406		5,698		724		326		2,493
Remarketing and liquiditiy
fees					365,813
Miscellaneous	41,272		72,779		20,193		17,463		36,711
Total expenses excluding interest
expense	2,754,336		7,786,196		2,489,356		210,480		2,798,576
Interest expense and fees	4,884				6,523,501				1,206
Total expenses	2,759,220		7,786,196		9,012,857		210,480		2,799,782
Less Investment Advisory fees
waived			(1,944,415	)	(768,168	)			(681,363	)
Less fees reimbursed by
Advisor	(1,523	)	(1,707	)	(1,084	)	(1,749	)	(12,751	)
Less fees paid indirectly	(8,506	)	(8,187	)	(9,683	)	(9,987	)	(9,094	)
Net expenses	2,749,191		5,831,887		8,233,922		198,744		2,096,574
Net investment income	18,111,477		49,131,354		9,344,930		842,673		16,381,853
Realized and Unrealized Gain
(Loss)
Net realized gain (loss) from:
Investments	1,085,770		3,181,780		354,029		(29,611	)	2,333,242
Futures and swaps	(796,962	)	(3,855,815	)	(136,812	)	21,731		(1,827,079	)
	288,808		(674,035	)	217,217		(7,880	)	506,163
Net change in unrealized
appreciation/depreciation on:
Investments	(14,808,979	)	(32,500,787	)	(15,430,269	)	(582,095	)	(12,016,581	)
Swaps	969,666		4,701,967		(111,029	)			1,852,642
	(13,839,313	)	(27,798,820	)	(15,541,298	)	(582,095	)	(10,163,939	)
Net loss	(13,550,505	)	(28,472,855	)	(15,324,081	)	(589,975	)	(9,657,776	)
Dividends and Distributions to
Preferred
Shareholders From:
Net investment income	(5,316,266	)	(13,506,034	)			(240,350	)	(4,587,525	)
Net realized gains			(18,029	)			(16,752	)
	(5,316,266	)	(13,524,063	)			(257,102	)	(4,587,525	)
Net Increase (Decrease) in Net Assets
Applicable to Common Shareholders Resulting from Operations	$ (755,294	)	$ 7,134,436	$	(5,979,151	)	$ (4,404	)	$ 2,136,552

See Notes to Financial Statements. — 38	ANNUAL REPORT	OCTOBER 31, 2007

| For
the year ended October 31, 2007 | BlackRock Florida Investment Quality Municipal Trust (RFA) | | BlackRock Florida Municipal Income Trust (BBF) | | | | BlackRock New Jersey Municipal Income Trust (BNJ) | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Investment Income | | | | | | | | | | | | |
| Interest and dividend income | $ 1,145,830 | | $ 8,112,052 | $ | 1,110,861 | | $ 9,661,951 | $ | 1,474,103 | $ | 15,904,487 | |
| Dividend income from investments in
affiliates | 10,580 | | 63,692 | | 4,441 | | 23,253 | | 7,516 | | 47,163 | |
| Income from affiliates | 467 | | 811 | | 627 | | 881 | | 454 | | 2,043 | |
| Total investment income | 1,156,877 | | 8,176,555 | | 1,115,929 | | 9,686,085 | | 1,482,073 | | 15,953,693 | |
| Expenses | | | | | | | | | | | | |
| Investment advisory | 84,313 | | 959,889 | | 75,762 | | 1,098,989 | | 101,953 | | 1,833,107 | |
| Administration | 24,090 | | | | 21,646 | | | | 29,130 | | | |
| Transfer agent | 9,102 | | 13,078 | | 9,406 | | 13,426 | | 9,544 | | 13,817 | |
| Custodian | 18,606 | | 56,145 | | 15,619 | | 58,705 | | 16,834 | | 65,581 | |
| Reports to shareholders | 6,201 | | 19,887 | | 7,287 | | 24,248 | | 9,103 | | 38,856 | |
| Directors/Trustees | 5,003 | | 11,081 | | 5,974 | | 12,942 | | 5,078 | | 21,212 | |
| Registration | 348 | | 8,202 | | 310 | | 8,498 | | 404 | | 5,841 | |
| Independent accountants | 24,189 | | 36,728 | | 24,171 | | 36,923 | | 24,231 | | 37,839 | |
| Legal | 6,659 | | 16,588 | | 6,148 | | 16,687 | | 6,676 | | 31,670 | |
| Officers fees | 365 | | 2,425 | | 329 | | 2,800 | | 455 | | 4,610 | |
| Insurance | 1,239 | | 8,200 | | 1,114 | | 9,382 | | 1,493 | | 15,651 | |
| Auction agent | 25,765 | | 147,633 | | 23,265 | | 162,829 | | 29,004 | | 281,541 | |
| Deferred Trustees fees | 467 | | 811 | | 627 | | 881 | | 454 | | 2,043 | |
| Remarketing and liquiditiy
fees | | | | | | | | | | | | |
| Miscellaneous | 17,572 | | 26,899 | | 17,471 | | 27,815 | | 15,701 | | 33,670 | |
| Total expenses excluding interest
expense | 223,919 | | 1,307,566 | | 209,129 | | 1,474,125 | | 250,060 | | 2,385,438 | |
| Interest expense and fees | | | | | | | | | | | | |
| Total expenses | 223,919 | | 1,307,566 | | 209,129 | | 1,474,125 | | 250,060 | | 2,385,438 | |
| Less Investment Advisory fees
waived | | | (300,075 | ) | | | (343,709 | ) | | | (573,208 | ) |
| Less fees reimbursed by
Advisor | (1,608 | ) | (9,553 | ) | (634 | ) | (3,322 | ) | (917 | ) | (5,675 | ) |
| Less fees paid indirectly | (6,211 | ) | (10,561 | ) | (10,208 | ) | (12,211 | ) | (8,839 | ) | (10,382 | ) |
| Net expenses | 216,100 | | 987,377 | | 198,287 | | 1,114,883 | | 240,304 | | 1,796,173 | |
| Net investment income | 940,777 | | 7,189,178 | | 917,642 | | 8,571,202 | | 1,241,769 | | 14,157,520 | |
| Realized and Unrealized Gain
(Loss) | | | | | | | | | | | | |
| Net realized gain (loss) from: | | | | | | | | | | | | |
| Investments | (155,767 | ) | 322,068 | | (55,198 | ) | 368,596 | | 174,369 | | 754,099 | |
| Futures and swaps | 18,500 | | (748,776 | ) | | | (983,865 | ) | | | (1,286,869 | ) |
| | (137,267 | ) | (426,708 | ) | (55,198 | ) | (615,269 | ) | 174,369 | | (532,770 | ) |
| Net change in unrealized
appreciation/depreciation on: | | | | | | | | | | | | |
| Investments | (640,194 | ) | (3,477,675 | ) | (650,877 | ) | (5,941,834 | ) | (959,807 | ) | (9,487,198 | ) |
| Swaps | (19,258 | ) | 694,636 | | | | 844,171 | | | | 1,193,186 | |
| | (659,452 | ) | (2,783,039 | ) | (650,877 | ) | (5,097,663 | ) | (959,807 | ) | (8,294,012 | ) |
| Net loss | (796,719 | ) | (3,209,747 | ) | (706,075 | ) | (5,712,932 | ) | (785,438 | ) | (8,826,782 | ) |
| Dividends and Distributions to
Preferred
Shareholders From: | | | | | | | | | | | | |
| Net investment income | (292,680 | ) | (2,093,225 | ) | (236,547 | ) | (2,223,503 | ) | (332,059 | ) | (3,596,912 | ) |
| Net realized gains | (42,977 | ) | | | (17,621 | ) | | | (8,495 | ) | | |
| | (335,657 | ) | (2,093,225 | ) | (254,168 | ) | (2,223,503 | ) | (340,554 | ) | (3,596,912 | ) |
| Net Increase (Decrease) in Net Assets
Applicable to Common Shareholders Resulting from Operations | $ (191,599 | ) | $ 1,886,206 | $ | (42,601 | ) | $ 634,767 | $ | 115,777 | $ | 1,733,826 | |

| See Notes to Financial Statements. — ANNUAL REPORT | OCTOBER
31, 2007 | 39 |
| --- | --- | --- |

Statements of Changes in Net Assets
For the years ended October 31,
2007 and 2006

| Increase (Decrease) in Net Assets
Applicable to Common Shareholders | BlackRock Investment Quality Municipal Trust (BKN) — 2007 | 2006 | | 2007 | | 2006 | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Operations: | | | | | | | | |
| Net
investment income | $ 18,111,477 | $ | 18,419,051 | $ | 49,131,354 | $ | 50,095,286 | |
| Net
realized gain (loss) | 288,808 | | 607,295 | | (674,035 | ) | 1,390,886 | |
| Net change
in unrealized appreciation/depreciation | (13,839,313 | ) | 6,751,110 | | (27,798,820 | ) | 33,062,215 | |
| Dividends
and distributions to preferred shareholders from: | | | | | | | | |
| Net
investment income | (5,316,266 | ) | (4,700,264 | ) | (13,506,034 | ) | (12,001,964 | ) |
| Net
realized gains | | | | | (18,029 | ) | | |
| Net
increase (decrease) in net assets applicable to common shareholders resulting
from operations | (755,294 | ) | 21,077,192 | | 7,134,436 | | 72,546,423 | |
| Dividends and Distributions to Common
Shareholders from: | | | | | | | | |
| Net
investment income | (17,197,915 | ) | (17,692,813 | ) | (43,341,822 | ) | (43,385,755 | ) |
| Net
realized gains | | | | | (57,432 | ) | | |
| Total
dividends and distributions | (17,197,915 | ) | (17,692,813 | ) | (43,399,254 | ) | (43,385,755 | ) |
| Capital Share
Transactions: | | | | | | | | |
| Net proceeds
from the issuance of common shares | | | | | | | | |
| Net
proceeds from the underwriters over-allotment option exercised | | | | | | | | |
| Reinvestment
of common dividends | 1,347,346 | | | | 3,165,968 | | 2,871,527 | |
| Net
proceeds from capital share transactions | 1,347,346 | | | | 3,165,968 | | 2,871,527 | |
| Total
increase (decrease) | (16,605,863 | ) | 3,384,379 | | (33,098,850 | ) | 32,032,195 | |
| Net Assets Applicable to Common
Shareholders | | | | | | | | |
| Beginning
of period | 263,878,252 | | 260,493,873 | | 674,079,589 | | 642,047,394 | |
| End of
period | $ 247,272,389 | $ | 263,878,252 | $ | 640,980,739 | $ | 674,079,589 | |
| End of
period undistributed net investment income | $ 4,209,470 | $ | 8,636,759 | $ | 7,939,545 | $ | 15,656,056 | |

1 Commencement of operations for Long-Term Municipal Advantage was February 28, 2006. This information includes the initial investment by BlackRock Funding, Inc.

| Increase (Decrease) in Net Assets
Applicable to Common Shareholders | BlackRock
Florida Municipal Income Trust (BBF) — 2007 | 2006 | | 2007 | | 2006 | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Operations: | | | | | | | | |
| Net
investment income | $ 7,189,178 | $ | 7,369,362 | $ | 917,642 | $ | 856,791 | |
| Net
realized gain (loss) | (426,708 | ) | 1,156,069 | | (55,198 | ) | 120,175 | |
| Net change
in unrealized appreciation/depreciation | (2,783,039 | ) | 591,321 | | (650,877 | ) | 222,494 | |
| Dividends
and distributions to preferred shareholders from: | | | | | | | | |
| Net
investment income | (2,093,225 | ) | (1,810,602 | ) | (236,547 | ) | (204,250 | ) |
| Net
realized gains | | | | | (17,621 | ) | (25,877 | ) |
| Net
increase (decrease) in net assets applicable to common shareholders resulting
from operations | 1,886,206 | | 7,306,150 | | (42,601 | ) | 969,333 | |
| Dividends and Distributions to Common
Shareholders from: | | | | | | | | |
| Net
investment income | (6,035,745 | ) | (6,019,766 | ) | (830,797 | ) | (847,505 | ) |
| Net
realized gains | | | | | (38,111 | ) | (126,529 | ) |
| Total
dividends and distributions | (6,035,745 | ) | (6,019,766 | ) | (868,908 | ) | (974,034 | ) |
| Capital Share
Transactions: | | | | | | | | |
| Reinvestment
of common dividends | 262,307 | | 221,091 | | 29,674 | | | |
| Total
increase (decrease) | (3,887,232 | ) | 1,507,475 | | (881,835 | ) | (4,701 | ) |
| Net Assets Applicable to Common
Shareholders | | | | | | | | |
| Beginning
of year | 104,451,011 | | 102,943,536 | | 14,576,057 | | 14,580,758 | |
| End of year | $ 100,563,779 | $ | 104,451,011 | $ | 13,694,222 | $ | 14,576,057 | |
| End of year
undistributed net investment income | $ 1,230,692 | $ | 2,170,518 | $ | 224,395 | $ | 374,229 | |

| See Notes to Financial
Statements. — 40 | ANNUAL REPORT | OCTOBER 31, 2007 |
| --- | --- | --- |

| Increase (Decrease) in Net Assets
Applicable to Common Shareholders | BlackRock Long-Term Municipal Advantage Trust (BTA) — 2007 | | 2006 1 | | BlackRock
California Investment Quality Municipal Trust (RAA) — 2007 | | 2006 | | BlackRock California Municipal Income Trust (BFZ) — 2007 | 2006 | | 2007 | | 2006 | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Operations: | | | | | | | | | | | | | | | | |
| Net
investment income | $ 9,344,930 | | $ 6,007,001 | | $ 842,673 | | $ 877,154 | | $ 16,381,853 | $ | 16,761,247 | $ | 940,777 | $ | 923,461 | |
| Net
realized gain (loss) | 217,217 | | (264,829 | ) | (7,880 | ) | 78,405 | | 506,163 | | 2,216,392 | | (137,267 | ) | 265,765 | |
| Net change
in unrealized appreciation/depreciation | (15,541,298 | ) | 8,498,372 | | (582,095 | ) | 430,243 | | (10,163,939 | ) | 7,064,059 | | (659,452 | ) | 186,488 | |
| Dividends
and distributions to preferred shareholders from: | | | | | | | | | | | | | | | | |
| Net
investment income | | | | | (240,350 | ) | (215,916 | ) | (4,587,525 | ) | (3,954,681 | ) | (292,680 | ) | (236,669 | ) |
| Net
realized gains | | | | | (16,752 | ) | | | | | | | (42,977 | ) | (54,375 | ) |
| Net
increase (decrease) in net assets applicable to common shareholders resulting
from operations | (5,979,151 | ) | 14,240,544 | | (4,404 | ) | 1,169,886 | | 2,136,552 | | 22,087,017 | | (191,599 | ) | 1,084,670 | |
| Dividends and Distributions to Common
Shareholders from: | | | | | | | | | | | | | | | | |
| Net
investment income | (9,535,364 | ) | (6,393,277 | ) | (602,846 | ) | (853,209 | ) | (13,751,528 | ) | (13,697,832 | ) | (674,882 | ) | (957,322 | ) |
| Net
realized gains | | | | | (51,877 | ) | | | | | | | (53,470 | ) | (287,688 | ) |
| Total
dividends and distributions | (9,535,364 | ) | (6,393,277 | ) | (654,723 | ) | (853,209 | ) | (13,751,528 | ) | (13,697,832 | ) | (728,352 | ) | (1,245,010 | ) |
| Capital Share
Transactions: | | | | | | | | | | | | | | | | |
| Net
proceeds from the issuance of common shares | | | 186,584,810 | | | | | | | | | | | | | |
| Net
proceeds from the underwriters over-allotment option exercised | | | 3,216,375 | | | | | | | | | | | | | |
| Reinvestment
of common dividends | 538,721 | | 488,672 | | | | | | 981,552 | | 711,184 | | | | | |
| Net
proceeds from capital share transactions | 538,721 | | 190,289,857 | | | | | | 981,552 | | 711,184 | | | | | |
| Total
increase (decrease) | (14,975,794 | ) | 198,137,124 | | (659,127 | ) | 316,677 | | (10,633,424 | ) | 9,100,369 | | (919,951 | ) | (160,340 | ) |
| Net Assets Applicable to Common
Shareholders | | | | | | | | | | | | | | | | |
| Beginning
of period | 198,137,124 | | | | 14,615,284 | | 14,298,607 | | 236,572,711 | | 227,472,342 | | 16,053,831 | | 16,214,171 | |
| End of
period | $ 183,161,330 | | $ 198,137,124 | | $ 13,956,157 | | $ 14,615,284 | | $ 225,939,287 | $ | 236,572,711 | $ | 15,133,880 | $ | 16,053,831 | |
| End of
period undistributed net investment income | $ (536,602 | ) | $ (347,276 | ) | $ (3,826 | ) | $ (596 | ) | $ 4,037,754 | $ | 5,994,975 | $ | 1,915 | $ | 28,700 | |

| Increase (Decrease) in Net Assets
Applicable to Common Shareholders | BlackRock
New Jersey Municipal Income Trust (BNJ) — 2007 | 2006 | | 2007 | | 2006 | | 2007 | | 2006 | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Operations: | | | | | | | | | | | | |
| Net
investment income | $ 8,571,202 | $ | 8,743,414 | $ | 1,241,769 | $ | 1,265,857 | $ | 14,157,520 | $ | 14,267,470 | |
| Net
realized gain (loss) | (615,269 | ) | 1,477,938 | | 174,369 | | 87,630 | | (532,770 | ) | 1,763,256 | |
| Net change
in unrealized appreciation/depreciation | (5,097,663 | ) | 2,392,840 | | (959,807 | ) | 395,405 | | (8,294,012 | ) | 4,045,210 | |
| Dividends
and distributions to preferred shareholders from: | | | | | | | | | | | | |
| Net
investment income | (2,223,503 | ) | (1,946,877 | ) | (332,059 | ) | (276,400 | ) | (3,596,912 | ) | (3,294,504 | ) |
| Net
realized gains | | | | | (8,495 | ) | (20,219 | ) | | | | |
| Net
increase (decrease) in net assets applicable to common shareholders resulting
from operations | 634,767 | | 10,667,315 | | 115,777 | | 1,452,273 | | 1,733,826 | | 16,781,432 | |
| Dividends and Distributions to Common
Shareholders from: | | | | | | | | | | | | |
| Net
investment income | (7,148,582 | ) | (7,110,417 | ) | (1,114,664 | ) | (1,146,975 | ) | (11,399,449 | ) | (11,347,915 | ) |
| Net
realized gains | | | | | (17,872 | ) | (109,330 | ) | | | | |
| Total
dividends and distributions | (7,148,582 | ) | (7,110,417 | ) | (1,132,536 | ) | (1,256,305 | ) | (11,399,449 | ) | (11,347,915 | ) |
| Capital Share
Transactions: | | | | | | | | | | | | |
| Reinvestment
of common dividends | 679,024 | | 690,656 | | 26,224 | | | | 910,003 | | 826,411 | |
| Total
increase (decrease) | (5,834,791 | ) | 4,247,554 | | (990,535 | ) | 195,968 | | (8,755,620 | ) | 6,259,928 | |
| Net Assets Applicable to Common
Shareholders | | | | | | | | | | | | |
| Beginning
of year | 121,986,998 | | 117,739,444 | | 19,838,950 | | 19,642,982 | | 199,717,179 | | 193,457,251 | |
| End of year | $ 116,152,207 | $ | 121,986,998 | $ | 18,848,415 | $ | 19,838,950 | $ | 190,961,559 | $ | 199,717,179 | |
| End of year
undistributed net investment income | $ 2,639,891 | $ | 3,440,789 | $ | 146,107 | $ | 358,505 | $ | 4,448,108 | $ | 5,287,790 | |

ANNUAL REPORT OCTOBER 31, 2007 41

S tatement of Cash Flows

Year Ended October 31, 2007	BlackRock Long-Term Municipal Advantage Trust (BTA)
Cash Flows provided by Operating
Activities
Net
decrease in net assets resulting from operations	$ (5,979,151	)
Adjustments to Reconcile Net Decrease in Net Assets
Resulting from
Operations to Net Cash provided by Operating Activities
Purchases
of long-term investments	(142,851,650	)
Proceeds
from sales of long-term investments	148,116,196
Net
purchases of short-term investments	(1,859,000	)
Amortization
of premium and discount on investments	13,899
Net
realized gain on investments	(354,029	)
Decrease in
unrealized appreciation/depreciation on investments	15,430,269
Increase in
unrealized depreciation on swaps	111,029
Increase in
investments in affiliates	(723	)
Increase in
receivable for investments sold	(3,677,401	)
Increase in
interest receivable	(636,082	)
Increase in
prepaid expenses	(5,874	)
Decrease in
other assets	11,178
Increase in
interest payable	192,601
Decrease in
investment advisory fee payable	(4,920	)
Increase in
Deferred Directors/Trustees fees	723
Decrease in
payable to affiliates	(3,132	)
Decrease in
Officers & Trustees fees	(2,572	)
Decrease in
accrued expenses	(42,992	)
Total
adjustments	14,437,520
Net cash
provided by operating activities	$ 8,458,369
Cash from financing activities:
Increase in
payable to custodian	$ 2,415
Proceeds
from trust certificates	22,650,000
Repayments
of trust certificates	(22,467,500	)
Cash
dividends paid	(9,176,690	)
Net cash
used for financing activities	$ (8,991,775	)
Net
decrease in cash	(533,406	)
Cash
beginning of year	533,406
Cash end of
year	$
Cash paid
for interest	$ 6,330,903

Non cash financing activities not included herein consist of reinvestment of dividends of $538,721.

See Notes to Financial Statements.

42 ANNUAL REPORT OCTOBER 31, 2007

F inancial Highlights BlackRock Investment Quality Municipal Trust (BKN)

| | Year
Ended October 31, — 2007 | 2006 | | 2005 | | 2004 | | 2003 | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Per Common Share Operating
Performance | | | | | | | | | | |
| Net asset
value, beginning of year | $ 15.79 | $ | 15.59 | $ | 15.71 | $ | 15.28 | $ | 15.19 | |
| Investment
operations: | | | | | | | | | | |
| Net
investment income | 1.08 | | 1.10 | | 1.14 | | 1.17 | | 1.16 | |
| Net
realized and unrealized gain (loss) | (0.79 | ) | 0.44 | | (0.11 | ) | 0.26 | | (0.09 | ) |
| Dividends
to preferred shareholders from net investment income | (0.32 | ) | (0.28 | ) | (0.19 | ) | (0.09 | ) | (0.09 | ) |
| Net
increase (decrease) from investment operations | (0.03 | ) | 1.26 | | 0.84 | | 1.34 | | 0.98 | |
| Dividends
to common shareholders from net investment income | (1.03 | ) | (1.06 | ) | (0.96 | ) | (0.91 | ) | (0.89 | ) |
| Net asset
value, end of year | $ 14.73 | $ | 15.79 | $ | 15.59 | $ | 15.71 | $ | 15.28 | |
| Market
price, end of year | $ 16.35 | $ | 18.97 | $ | 16.62 | $ | 15.12 | $ | 14.26 | |
| Total Investment
Returns 1 | | | | | | | | | | |
| At net
asset value | (0.95 | )% | 7.38 | % | 5.34 | % | 9.48 | % | 7.14 | % |
| At market
value | (8.49 | )% | 21.06 | % | 16.68 | % | 12.91 | % | 12.67 | % |
| Ratios to Average Net Assets of Common
Shareholders 2 | | | | | | | | | | |
| Expenses
after fees waived and paid indirectly | 1.07 | % | 1.09 | % | 1.08 | % | 1.08 | % | 1.10 | % |
| Expenses
after fees waived and before fees paid indirectly | 1.08 | % | 1.09 | % | 1.08 | % | 1.08 | % | 1.10 | % |
| Expenses
before fees waived and paid indirectly | 1.08 | % | 1.09 | % | 1.08 | % | 1.08 | % | 1.10 | % |
| Net
investment income after fees waived and paid indirectly and before preferred
share dividends from net investment income | 7.06 | % | 7.09 | % | 7.21 | % | 7.59 | % | 7.62 | % |
| Preferred
share dividends from net investment income | 2.07 | % | 1.81 | % | 1.17 | % | 0.60 | % | 0.59 | % |
| Net
investment income available to common shareholders | 4.99 | % | 5.28 | % | 6.04 | % | 6.99 | % | 7.03 | % |
| Supplemental Data | | | | | | | | | | |
| Average net
assets of common shareholders (000) | $ 256,463 | $ | 259,862 | $ | 264,490 | $ | 259,470 | $ | 254,890 | |
| Portfolio
turnover | 17 | % | 82 | % | 77 | % | 52 | % | 36 | % |
| Net assets
applicable to common shareholders, end of year (000) | $ 247,272 | $ | 263,878 | $ | 260,494 | $ | 262,475 | $ | 255,315 | |
| Preferred
shares value outstanding, end of year (000) | $ 146,550 | $ | 146,550 | $ | 146,550 | $ | 146,550 | $ | 146,550 | |
| Asset
coverage per preferred share, end of year | $ 67,185 | $ | 70,054 | $ | 69,465 | $ | 69,790 | $ | 68,561 | |

| 1 | Total investment returns at market price, which can be
significantly greater or lesser then at net asset value, and may result in
substantially different returns. Total investment returns exclude the effects
of brokerage commissions. Total investment returns for less than a full year
are not annualized. Past performance is not a guarantee of future results. |
| --- | --- |
| 2 | Ratios are calculated on the basis of income and expenses
applicable to both the common and preferred shares relative to the average
net assets of the common shareholders. |

The information in the above Financial Highlights represents the operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trusts common shares.

See Notes to Financial Statements. — ANNUAL REPORT	OCTOBER 31, 2007	43

Financial Highlights BlackRock Municipal Income Trust (BFK)

| | Year
Ended October 31, — 2007 | 2006 | | 2005 | | 2004 | | 2003 | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Per Common Share Operating
Performance | | | | | | | | | | |
| Net asset
value, beginning of year | $ 15.37 | $ | 14.71 | $ | 14.26 | $ | 13.87 | $ | 13.33 | |
| Investment
operations: | | | | | | | | | | |
| Net
investment income | 1.11 | | 1.14 | | 1.18 | | 1.19 | | 1.23 | |
| Net
realized and unrealized gain (loss) | (0.63 | ) | 0.78 | | 0.43 | | 0.26 | | 0.35 | |
| Dividends
and distributions to preferred shareholders from: | | | | | | | | | | |
| Net
investment income | (0.31 | ) | (0.27 | ) | (0.18 | ) | (0.09 | ) | (0.09 | ) |
| Net
realized gains | | 1 | | | | | | | | |
| Net
increase from investment operations | 0.17 | | 1.65 | | 1.43 | | 1.36 | | 1.49 | |
| Dividends
and distributions to common shareholders from: | | | | | | | | | | |
| Net
investment income | (0.99 | ) | (0.99 | ) | (0.98 | ) | (0.97 | ) | (0.95 | ) |
| Net
realized gains | | 1 | | | | | | | | |
| Total
dividends and distributions | (0.99 | ) | (0.99 | ) | (0.98 | ) | (0.97 | ) | (0.95 | ) |
| Net asset
value, end of year | $ 14.55 | $ | 15.37 | $ | 14.71 | $ | 14.26 | $ | 13.87 | |
| Market
price, end of year | $ 15.92 | $ | 17.30 | $ | 15.69 | $ | 14.05 | $ | 13.70 | |
| Total Investment
Returns 2 | | | | | | | | | | |
| At net
asset value | 0.70 | % | 11.24 | % | 10.21 | % | 10.29 | % | 11.63 | % |
| At market
value | (2.11% | ) | 17.39 | % | 19.31 | % | 10.01 | % | 9.21 | % |
| Ratios to Average Net Assets of Common
Shareholders 3 | | | | | | | | | | |
| Expenses
after fees waived and paid indirectly | 0.88 | % | 0.83 | % | 0.83 | % | 0.83 | % | 0.84 | % |
| Expenses
after fees waived and before fees paid indirectly | 0.88 | % | 0.83 | % | 0.83 | % | 0.83 | % | 0.84 | % |
| Expenses
before fees waived and paid indirectly | 1.18 | % | 1.21 | % | 1.22 | % | 1.23 | % | 1.25 | % |
| Net
investment income after fees waived and paid indirectly and before preferred share dividends from net investment income | 7.43 | % | 7.65 | % | 7.97 | % | 8.44 | % | 8.96 | % |
| Preferred
share dividends from net investment income | 2.04 | % | 1.83 | % | 1.23 | % | 0.63 | % | 0.65 | % |
| Net
investment income available to common shareholders | 5.39 | % | 5.82 | % | 6.74 | % | 7.81 | % | .31 | % |
| Supplemental Data | | | | | | | | | | |
| Average net
assets of common shareholders (000) | $ 661,058 | $ | 654,691 | $ | 644,680 | $ | 618,076 | $ | 594,192 | |
| Portfolio
turnover | 17 | % | 77 | % | 68 | % | 59 | % | 56 | % |
| Net assets
applicable to common shareholders, end of year (000) | $ 640,981 | $ | 674,080 | $ | 642,047 | $ | 621,648 | $ | 603,943 | |
| Preferred
shares value outstanding, end of year (000) | $ 375,125 | $ | 375,125 | $ | 375,125 | $ | 375,125 | $ | 375,125 | |
| Asset
coverage per preferred share, end of year | $ 67,727 | $ | 69,933 | $ | 67,797 | $ | 66,435 | $ | 65,251 | |

1	Amounted to less than $0.01 per common share outstanding.
2	Total investment returns at market price, which can be
significantly greater or lesser then at net asset value, and may result in
substantially different returns. Total investment returns exclude the effects
of brokerage commissions. Total investment returns for less than a full year
are not annualized. Past performance is not a guarantee of future results.
3	Ratios are calculated on the basis of income and expenses
applicable to both the common and preferred shares relative to the average
net assets of the common shareholders.

See Notes to Financial Statements.

44 ANNUAL REPORT OCTOBER 31, 2007

Financial Highlights BlackRock Long-Term Municipal Advantage Trust (BTA)

| | Year
ended October 31, 2007 | | | |
| --- | --- | --- | --- | --- |
| Per Share Operating
Performance | | | | |
| Net asset value, beginning of period | $ 14.89 | $ | 14.33 | 2 |
| Investment operations: | | | | |
| Net investment income | 0.70 | | 0.45 | |
| Net realized and unrealized gain
(loss) | (1.15 | ) | 0.62 | |
| Net increase (decrease) from investment
operations | (0.45 | ) | 1.07 | |
| Dividends to common shareholders from net investment
income | (0.72 | ) | (0.48 | ) |
| Capital charges with respect to issuance of Common
shares | | | (0.03 | ) |
| Net asset value, end of period | $ 13.72 | $ | 14.89 | |
| Market price, end of period | $ 12.14 | $ | 14.70 | |
| Total Investment
Returns 3 | | | | |
| At net asset value | (2.93 | )% | 7.48 | % |
| At market value | (13.00 | )% | 1.40 | % |
| Ratios to Average Net Assets | | | | |
| Expenses after fees waived and paid indirectly | 4.29 | % | 4.11 | % 4 |
| Expenses after fees waived and before fees paid
indirectly | 4.29 | % | 4.14 | % |
| Expenses before fees waived and paid indirectly | 4.69 | % | 4.55 | % 4 |
| Expenses after fees waived and paid indirectly excluding
interest expense | 0.89 | % | 0.97 | % 4 |
| Net investment income | 4.87 | % | 4.79 | % 4 |
| Supplemental Data | | | | |
| Average net assets (000) | $ 192,042 | $ | 186,998 | |
| Portfolio turnover | 39 | % | 20 | % |
| Net assets, end of period (000) | $ 183,161 | | 198,137 | |
| Trust certificates, end of period | $ 177,528 | $ | 177,345 | |
| Asset coverage, end of period 5 | $ 2,032 | $ | 2,177 | |
| Trust certificates average daily balance (000) | $ 181,212 | $ | 183,026 | |
| Trust certificates weighted average interest
rate | 3.71 | % | 3.57 | % |

| 1 | Commencement of investment
operations. This information includes the initial investment by BlackRock
Funding, Inc. |
| --- | --- |
| 2 | Net asset value, beginning of
period, reflects a deduction of $0.675 per share sales charge from the
initial offering price of $15.00 per share. |
| 3 | Total investment returns at
market price, which can be significantly greater or lesser then at net asset
value, and may result in substantially different returns. Total investment returns
exclude the effects of brokerage commissions. Total investment returns for
less than a full year are not annualized. Past performance is not a guarantee
of future results. |
| 4 | Annualized. |
| 5 | Per $1,000 of certificates
outstanding. |

| See Notes to Financial Statements. — ANNUAL
REPORT | OCTOBER 31, 2007 | 45 |
| --- | --- | --- |

Financial Highlights BlackRock California Investment Quality Municipal Trust (RAA)

| | Year
Ended October 31, — 2007 | 2006 | | 2005 | | 2004 | | 2003 | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Per Common
Share Operating Performance | | | | | | | | | | |
| Net asset
value, beginning of year | $ 14.51 | $ | 14.20 | $ | 14.43 | $ | 14.56 | $ | 14.81 | |
| Investment
operations: | | | | | | | | | | |
| Net
investment income | 0.84 | | 0.87 | | 0.78 | | 0.92 | | 1.05 | |
| Net
realized and unrealized gain (loss) | (0.58 | ) | 0.50 | | (0.03 | ) | (0.09 | ) | (0.41 | ) |
| Dividends
and distributions to preferred shareholders from: | | | | | | | | | | |
| Net
investment income | (0.24 | ) | (0.21 | ) | (0.13 | ) | (0.06 | ) | (0.06 | ) |
| Net
realized gains | (0.02 | ) | | | | | | | | |
| Net
increase from investment operations | | | 1.16 | | 0.62 | | 0.77 | | 0.58 | |
| Dividends
and distributions to common shareholders from: | | | | | | | | | | |
| Net
investment income | (0.60 | ) | (0.85 | ) | (0.85 | ) | (0.85 | ) | (0.83 | ) |
| Net
realized gains | (0.05 | ) | | | | | (0.05 | ) | | |
| Total
dividends and distributions | (0.65 | ) | (0.85 | ) | (0.85 | ) | (0.90 | ) | (0.83 | ) |
| Net asset
value, end of year | $ 13.86 | $ | 14.51 | $ | 14.20 | $ | 14.43 | $ | 14.56 | |
| Market
price, end of year | $ 12.57 | $ | 15.80 | $ | 15.75 | $ | 14.30 | $ | 14.03 | |
| Total
Investment Returns 1 | | | | | | | | | | |
| At net
asset value | 0.01 | % | 7.87 | % | 4.32 | % | 5.77 | % | 4.43 | % |
| At market
value | (16.71 | ) % | 5.90 | % | 16.76 | % | 8.78 | % | 11.38 | % |
| Ratios to
Average Net Assets of Common Shareholders 2 | | | | | | | | | | |
| Expenses
after fees waived and paid indirectly | 1.39 | % | 1.41 | % | 1.35 | % | 1.35 | % | 1.40 | % |
| Expenses
after fees waived and before fees paid indirectly | 1.46 | % | 1.50 | % | 1.39 | % | 1.40 | % | 1.40 | % |
| Expenses
before fees waived and paid indirectly | 1.47 | % | 1.50 | % | 1.39 | % | 1.40 | % | 1.40 | % |
| Net
investment income after fees waived and paid indirectly and before preferred
share dividends from net investment income | 5.90 | % | 6.11 | % | 5.38 | % | 6.37 | % | 7.17 | % |
| Preferred
share dividends from net investment income | 1.68 | % | 1.50 | % | 0.88 | % | 0.42 | % | 0.44 | % |
| Net
investment income available to common shareholders | 4.22 | % | 4.61 | % | 4.50 | % | 5.95 | % | 6.73 | % |
| Supplemental
Data | | | | | | | | | | |
| Average net
assets of common shareholders (000) | $ 14,274 | $ | 14,358 | $ | 14,569 | $ | 14,553 | $ | 14,752 | |
| Portfolio
turnover | 38 | % | 49 | % | 20 | % | 15 | % | 6 | % |
| Net assets
applicable to common shareholders, end of year (000) | $ 13,956 | $ | 14,615 | $ | 14,299 | $ | 14,529 | $ | 14,665 | |
| Preferred
shares value outstanding, end of year (000) | $ 7,500 | $ | 7,500 | $ | 7,500 | $ | 7,500 | $ | 7,500 | |
| Asset
coverage per preferred share, end of year | $ 71,534 | $ | 73,731 | $ | 72,671 | $ | 73,433 | $ | 73,886 | |

| 1 | Total investment returns at
market price, which can be significantly greater or lesser then at net asset
value, and may result in substantially different returns. Total investment
returns exclude the effects of brokerage commissions. Total investment
returns for less than a full year are not annualized. Past performance is not
a guarantee of future results. |
| --- | --- |
| 2 | Ratios are calculated on the
basis of income and expenses applicable to both the common and preferred
shares relative to the average net assets of the common shareholders. |

See Notes to Financial Statements. — 46	ANNUAL REPORT	OCTOBER 31, 2007

Financial Highlights BlackRock California Municipal Income Trust (BFZ)

| | Year
Ended October 31, — 2007 | 2006 | | 2005 | | 2004 | | 2003 | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Per Common Share Operating
Performance | | | | | | | | | | |
| Net asset
value, beginning of year | $ 15.74 | $ | 15.18 | $ | 14.77 | $ | 13.97 | $ | 14.16 | |
| Investment
operations: | | | | | | | | | | |
| Net
investment income | 1.08 | | 1.11 | | 1.12 | | 1.15 | | 1.12 | |
| Net
realized and unrealized gain (loss) | (0.64 | ) | 0.62 | | 0.36 | | 0.65 | | (0.34 | ) |
| Dividends
to preferred shareholders from net investment income | (0.30 | ) | (0.26 | ) | (0.16 | ) | (0.09 | ) | (0.08 | ) |
| Net
increase from investment operations | 0.14 | | 1.47 | | 1.32 | | 1.71 | | 0.70 | |
| Dividends
to common shareholders from net investment income | (0.91 | ) | (0.91 | ) | (0.91 | ) | (0.91 | ) | (0.89 | ) |
| Net asset
value, end of year | $ 14.97 | $ | 15.74 | $ | 15.18 | $ | 14.77 | $ | 13.97 | |
| Market
price, end of year | $ 15.82 | $ | 17.12 | $ | 14.92 | $ | 13.65 | $ | 13.21 | |
| Total Investment
Returns 1 | | | | | | | | | | |
| At net
asset value | 0.77 | % | 9.93 | % | 9.47 | % | 13.14 | % | 5.49 | % |
| At market
value | (2.09 | ) % | 21.65 | % | 16.42 | % | 10.58 | % | 7.92 | % |
| Ratios to Average Net Assets of
Common Shareholders 2 | | | | | | | | | | |
| Expenses
after fees waived and paid indirectly | 0.91 | % | 0.87 | % | 0.85 | % | 0.87 | % | 0.89 | % |
| Expenses
after fees waived and before fees paid indirectly | 0.91 | % | 0.87 | % | 0.86 | % | 0.88 | % | 0.89 | % |
| Expenses
before fees waived and paid indirectly | 1.21 | % | 1.25 | % | 1.25 | % | 1.28 | % | 1.30 | % |
| Net
investment income after fees waived and paid indirectly and before preferred
share dividends from net investment income | 7.09 | % | 7.26 | % | 7.35 | % | 7.96 | % | 8.01 | % |
| Preferred
share dividends from net investment income | 1.98 | % | 1.71 | % | 1.04 | % | 0.59 | % | 0.57 | % |
| Net
investment income available to common shareholders | 5.11 | % | 5.55 | % | 6.31 | % | 7.37 | % | 7.44 | % |
| Supplemental Data | | | | | | | | | | |
| Average net
assets of common shareholders (000) | $ 231,216 | $ | 230,845 | $ | 227,738 | $ | 216,238 | $ | 211,275 | |
| Portfolio
turnover | 26 | % | 17 | % | 28 | % | 15 | % | 34 | % |
| Net assets
applicable to common shareholders, end of year (000) | $ 225,939 | $ | 236,573 | $ | 227,472 | $ | 221,371 | $ | 209,397 | |
| Preferred
shares value outstanding, end of year (000) | $ 131,950 | $ | 131,950 | $ | 131,950 | $ | 131,950 | $ | 131,950 | |
| Asset
coverage per preferred share, end of year | $ 67,816 | $ | 69,836 | $ | 68,107 | $ | 66,945 | $ | 64,675 | |

| 1 | Total investment returns at
market price, which can be significantly greater or lesser then at net asset
value, and may result in substantially different returns. Total investment
returns exclude the effects of brokerage commissions. Total investment
returns for less than a full year are not annualized. Past performance is not
a guarantee of future results. |
| --- | --- |
| 2 | Ratios are calculated on the
basis of income and expenses applicable to both the common and preferred
shares relative to the average net assets of the common shareholders. |

| See Notes to Financial Statements. — ANNUAL
REPORT | OCTOBER 31, 2007 | 47 |
| --- | --- | --- |

Financial Highlights BlackRock Florida Investment Quality Municipal Trust (RFA)

| | Year
Ended October 31, — 2007 | 2006 | | 2005 | | 2004 | | 2003 | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Per Common Share
Operating Performance | | | | | | | | | | |
| Net asset
value, beginning of year | $ 14.24 | $ | 14.39 | $ | 15.02 | $ | 15.39 | $ | 15.65 | |
| Investment
operations: | | | | | | | | | | |
| Net
investment income | 0.83 | | 0.82 | | 0.84 | | 0.98 | | 1.04 | |
| Net
realized and unrealized gain (loss) | (0.69 | ) | 0.40 | | (0.35 | ) | (0.18 | ) | (0.39 | ) |
| Dividends
and distributions to preferred shareholders from: | | | | | | | | | | |
| Net
investment income | (0.26 | ) | (0.21 | ) | (0.15 | ) | (0.07 | ) | (0.08 | ) |
| Net
realized gains | (0.04 | ) | (0.05 | ) | (0.01 | ) | (0.02 | ) | | |
| Net
increase (decrease) from investment operations | (0.16 | ) | 0.96 | | 0.33 | | 0.71 | | 0.57 | |
| Dividends
and distributions to common shareholders from: | | | | | | | | | | |
| Net
investment income | (0.60 | ) | (0.85 | ) | (0.85 | ) | (0.85 | ) | (0.83 | ) |
| Net
realized gains | (0.05 | ) | (0.26 | ) | (0.11 | ) | (0.23 | ) | | |
| Total
dividends and distributions | (0.65 | ) | (1.11 | ) | (0.96 | ) | (1.08 | ) | (0.83 | ) |
| Net asset
value, end of year | $ 13.43 | $ | 14.24 | $ | 14.39 | $ | 15.02 | $ | 15.39 | |
| Market
price, end of year | $ 11.86 | $ | 16.00 | $ | 14.85 | $ | 14.30 | $ | 14.47 | |
| Total Investment
Returns 1 | | | | | | | | | | |
| At net asset
value | (1.02 | )% | 6.46 | % | 2.19 | % | 5.00 | % | 3.98 | % |
| At market
value | (22.21 | )% | 15.91 | % | 10.76 | % | 6.32 | % | 5.52 | % |
| Ratios to Average Net
Assets of Common
Shareholders 2 | | | | | | | | | | |
| Expenses
after fees waived and paid indirectly | 1.39 | % | 1.37 | % | 1.29 | % | 1.27 | % | 1.29 | % |
| Expenses
after fees waived and before fees paid indirectly | 1.43 | % | 1.43 | % | 1.32 | % | 1.31 | % | 1.29 | % |
| Expenses
before fees waived and paid indirectly | 1.44 | % | 1.43 | % | 1.32 | % | 1.31 | % | 1.29 | % |
| Net
investment income after fees waived and paid indirectly and before preferred
share dividends from net investment income | 6.03 | % | 5.80 | % | 5.69 | % | 6.48 | % | 6.69 | % |
| Preferred
share dividends from net investment income | 1.88 | % | 1.49 | % | 1.05 | % | 0.46 | % | 0.51 | % |
| Net investment
income available to common shareholders | 4.15 | % | 4.31 | % | 4.64 | % | 6.02 | % | 6.18 | % |
| Supplemental
Data | | | | | | | | | | |
| Average net
assets of common shareholders (000) | $ 15,589 | $ | 15,930 | $ | 16,626 | $ | 17,035 | $ | 17,561 | |
| Portfolio
turnover | 40 | % | 57 | % | 15 | % | 13 | % | 17 | % |
| Net assets
applicable to common shareholders, end of year (000) | $ 15,134 | $ | 16,054 | $ | 16,214 | $ | 16,929 | $ | 17,347 | |
| Preferred
shares value outstanding, end of year (000) | $ 8,500 | $ | 8,500 | $ | 8,500 | $ | 8,500 | $ | 8,500 | |
| Asset
coverage per preferred share, end of year | $ 69,526 | $ | 72,229 | $ | 72,696 | $ | 74,795 | $ | 76,021 | |

| 1 | Total investment returns at
market price, which can be significantly greater or lesser then at net asset
value, and may result in substantially different returns. Total investment
returns exclude the effects of brokerage commissions. Total investment
returns for less than a full year are not annualized. Past performance is not
a guarantee of future results. |
| --- | --- |
| 2 | Ratios are calculated on the
basis of income and expenses applicable to both the common and preferred
shares relative to the average net assets of the common shareholders. |

| See Notes
to Financial Statements. — 48 | ANNUAL REPORT | OCTOBER 31, 2007 |
| --- | --- | --- |

Financial Highlights BlackRock Florida Municipal Income Trust (BBF)

| | Year
Ended October 31, — 2007 | 2006 | | 2005 | | 2004 | | 2003 | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Per Common Share
Operating Performance | | | | | | | | | | |
| Net asset
value, beginning of year | $ 15.68 | $ | 15.48 | $ | 15.27 | $ | 14.68 | $ | 14.57 | |
| Investment
operations: | | | | | | | | | | |
| Net
investment income | 1.07 | | 1.11 | | 1.11 | | 1.12 | | 1.11 | |
| Net
realized and unrealized gain (loss) | (0.49 | ) | 0.26 | | 0.17 | | 0.45 | | (0.03 | ) |
| Dividends
to preferred shareholders from net investment income | (0.31 | ) | (0.27 | ) | (0.17 | ) | (0.08 | ) | (0.08 | ) |
| Net
increase from investment operations | 0.27 | | 1.10 | | 1.11 | | 1.49 | | 1.00 | |
| Dividends
to common shareholders from net investment income | (0.90 | ) | (0.90 | ) | (0.90 | ) | (0.90 | ) | (0.89 | ) |
| Net asset
value, end of year | $ 15.05 | $ | 15.68 | $ | 15.48 | $ | 15.27 | $ | 14.68 | |
| Market
price, end of year | $ 15.10 | $ | 16.30 | $ | 15.25 | $ | 14.40 | $ | 13.36 | |
| Total Investment
Returns 1 | | | | | | | | | | |
| At net
asset value | 1.78 | % | 7.34 | % | 7.63 | % | 11.02 | % | 7.39 | % |
| At market
value | (1.76 | )% | 13.26 | % | 12.44 | % | 15.04 | % | 4.30 | % |
| Ratios to Average Net
Assets of Common
Shareholders 2 | | | | | | | | | | |
| Expenses
after fees waived and paid indirectly | 0.96 | % | 0.92 | % | 0.90 | % | 0.93 | % | 0.94 | % |
| Expenses
after fees waived and before fees paid indirectly | 0.97 | % | 0.93 | % | 0.91 | % | 0.93 | % | 0.95 | % |
| Expenses
before fees waived and paid indirectly | 1.28 | % | 1.30 | % | 1.30 | % | 1.32 | % | 1.35 | % |
| Net
investment income after fees waived and paid indirectly and before
preferred share dividends from net investment income | 7.02 | % | 7.12 | % | 7.16 | % | 7.49 | % | 7.50 | % |
| Preferred
share dividends from net investment income | 2.04 | % | 1.75 | % | 1.11 | % | 0.55 | % | 0.53 | % |
| Net
investment income available to common shareholders | 4.98 | % | 5.37 | % | 6.05 | % | 6.94 | % | 6.97 | % |
| Supplemental
Data | | | | | | | | | | |
| Average net
assets of common shareholders (000) | $ 102,424 | $ | 103,431 | $ | 103,432 | $ | 100,002 | $ | 98,081 | |
| Portfolio
turnover | 25 | % | 20 | % | 10 | % | 10 | % | 19 | % |
| Net assets
applicable to common shareholders, end of year (000) | $ 100,564 | $ | 104,451 | $ | 102,944 | $ | 101,512 | $ | 97,589 | |
| Preferred
shares value outstanding, end of year (000) | $ 57,550 | $ | 57,550 | $ | 57,550 | $ | 57,550 | $ | 57,550 | |
| Asset
coverage per preferred share, end of year | $ 68,688 | $ | 70,391 | $ | 69,729 | $ | 69,101 | $ | 67,394 | |

| 1 | Total investment returns at
market price, which can be significantly greater or lesser then at net asset
value, and may result in substantially different returns. Total investment
returns exclude the effects of brokerage commissions. Total investment
returns for less than a full year are not annualized. Past performance is not
a guarantee of future results. |
| --- | --- |
| 2 | Ratios are calculated on the
basis of income and expenses applicable to both the common and preferred
shares relative to the average net assets of the common shareholders. |

| See Notes
to Financial Statements. — ANNUAL REPORT | OCTOBER 31, 2007 | 49 |
| --- | --- | --- |

Financial Highlights BlackRock New Jersey Investment Quality Municipal Trust (RNJ)

| | Year
Ended October 31, — 2007 | 2006 | | 2005 | | 2004 | | 2003 | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Per Common Share
Operating Performance | | | | | | | | | | |
| Net asset
value, beginning of year | $ 14.47 | $ | 14.48 | $ | 14.79 | $ | 14.90 | $ | 14.64 | |
| Investment
operations: | | | | | | | | | | |
| Net
investment income | 0.91 | | 0.85 | | 0.87 | | 0.97 | | 1.00 | |
| Net
realized and unrealized gain (loss) | (0.70 | ) | 0.34 | | (0.21 | ) | (0.20 | ) | 0.12 | |
| Dividends
and distributions to preferred shareholders from: | | | | | | | | | | |
| Net
investment income | (0.23 | ) | (0.20 | ) | (0.15 | ) | (0.07 | ) | (0.06 | ) |
| Net
realized gains | (0.02 | ) | (0.03 | ) | | | | | | |
| Net
increase (decrease) from investment operations | (0.04 | ) | 0.96 | | 0.51 | | 0.70 | | 1.06 | |
| Dividends
and distributions to common shareholders from: | | | | | | | | | | |
| Net
investment income | (0.82 | ) | (0.84 | ) | (0.82 | ) | (0.81 | ) | (0.80 | ) |
| Net
realized gains | (0.04 | ) | (0.13 | ) | | | | | | |
| Total
dividends and distributions | (0.86 | ) | (0.97 | ) | (0.82 | ) | (0.81 | ) | (0.80 | ) |
| Net asset
value, end of year | $ 13.57 | $ | 14.47 | $ | 14.48 | $ | 14.79 | $ | 14.90 | |
| Market
price, end of year | $ 14.96 | $ | 15.95 | $ | 14.70 | $ | 15.00 | $ | 14.80 | |
| Total Investment
Returns 1 | | | | | | | | | | |
| At net
asset value | (1.03 | )% | 6.14 | % | 3.43 | % | 5.00 | % | 7.48 | % |
| At market
value | (1.02 | )% | 15.25 | % | 3.53 | % | 7.14 | % | 17.59 | % |
| Ratios to Average Net
Assets of Common
Shareholders 2 | | | | | | | | | | |
| Expenses
after fees waived and paid indirectly | 1.40 | % | 1.41 | % | 1.34 | % | 1.34 | % | 1.39 | % |
| Expenses
after fees waived and before fees paid indirectly | 1.47 | % | 1.51 | % | 1.37 | % | 1.37 | % | 1.39 | % |
| Expenses
before fees waived and paid indirectly | 1.48 | % | 1.51 | % | 1.37 | % | 1.37 | % | 1.39 | % |
| Net
investment income after fees waived and paid indirectly and before
preferred share dividends from net investment income | 6.49 | % | 5.91 | % | 5.89 | % | 6.50 | % | 6.72 | % |
| Preferred
share dividends from net investment income | 1.67 | % | 1.41 | % | 1.00 | % | 0.47 | % | 0.41 | % |
| Net
investment income available to common shareholders | 4.82 | % | 4.50 | % | 4.89 | % | 6.03 | % | 6.31 | % |
| Supplemental
Data | | | | | | | | | | |
| Average net
assets of common shareholders (000) | $ 14,146 | $ | 14,499 | $ | 14,873 | $ | 14,974 | $ | 14,975 | |
| Portfolio
turnover | 31 | % | 27 | % | 19 | % | 12 | % | 4 | % |
| Net assets
applicable to common shareholders, end of year (000) | $ 13,694 | $ | 14,576 | $ | 14,581 | $ | 14,900 | $ | 15,007 | |
| Preferred
shares value outstanding, end of year (000) | $ 7,500 | $ | 7,500 | $ | 7,500 | $ | 7,500 | $ | 7,500 | |
| Asset
coverage per preferred share, end of year | $ 70,649 | $ | 73,603 | $ | 73,612 | $ | 74,670 | $ | 75,026 | |

| 1 | Total investment returns at
market price, which can be significantly greater or lesser then at net asset
value, and may result in substantially different returns. Total investment
returns exclude the effects of brokerage commissions. Total investment
returns for less than a full year are not annualized. Past performance is not
a guarantee of future results. |
| --- | --- |
| 2 | Ratios are calculated on the
basis of income and expenses applicable to both the common and preferred
shares relative to the average net assets of the common shareholders. |

| See Notes
to Financial Statements. — 50 | ANNUAL REPORT | OCTOBER 31, 2007 |
| --- | --- | --- |

Financial Highlights BlackRock New Jersey Municipal Income Trust (BNJ)

| | Year
Ended October 31, — 2007 | 2006 | | 2005 | | 2004 | | 2003 | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Per Common Share
Operating Performance | | | | | | | | | | |
| Net asset
value, beginning of year | $ 16.35 | $ | 15.87 | $ | 15.38 | $ | 14.59 | $ | 14.29 | |
| Investment
operations: | | | | | | | | | | |
| Net
investment income | 1.14 | | 1.17 | | 1.17 | | 1.16 | | 1.15 | |
| Net
realized and unrealized gain (loss) | (0.74 | ) | 0.52 | | 0.42 | | 0.61 | | 0.11 | |
| Dividends
to preferred shareholders from net investment income | (0.30 | ) | (0.26 | ) | (0.18 | ) | (0.08 | ) | (0.08 | ) |
| Net
increase from investment operations | 0.10 | | 1.43 | | 1.41 | | 1.69 | | 1.18 | |
| Dividends
to common shareholders from net investment income | (0.96 | ) | (0.95 | ) | (0.92 | ) | (0.90 | ) | (0.88 | ) |
| Net asset
value, end of year | $ 15.49 | $ | 16.35 | $ | 15.87 | $ | 15.38 | $ | 14.59 | |
| Market
price, end of year | $ 16.90 | $ | 18.40 | $ | 15.91 | $ | 14.45 | $ | 14.04 | |
| Total Investment
Returns 1 | | | | | | | | | | |
| At net asset
value | 0.17 | % | 9.18 | % | 9.60 | % | 12.29 | % | 8.68 | % |
| At market
value | (2.89 | )% | 22.56 | % | 16.95 | % | 9.63 | % | 9.59 | % |
| Ratios to Average Net
Assets of Common Shareholders 2 | | | | | | | | | | |
| Expenses
after fees waived and paid indirectly | 0.93 | % | 0.89 | % | 0.89 | % | 0.91 | % | 0.93 | % |
| Expenses
after fees waived and before fees paid indirectly | 0.94 | % | 0.91 | % | 0.90 | % | 0.91 | % | 0.94 | % |
| Expenses
before fees waived and paid indirectly | 1.24 | % | 1.27 | % | 1.28 | % | 1.30 | % | 1.34 | % |
| Net
investment income after fees waived and paid indirectly and before preferred
share dividends from net investment income | 7.18 | % | 7.31 | % | 7.37 | % | 7.74 | % | 7.85 | % |
| Preferred
share dividends from net investment income | 1.86 | % | 1.63 | % | 1.12 | % | 0.56 | % | 0.57 | % |
| Net
investment income available to common shareholders | 5.32 | % | 5.68 | % | 6.25 | % | 7.18 | % | 7.28 | % |
| Supplemental
Data | | | | | | | | | | |
| Average net
assets of common shareholders (000) | $ 119,365 | $ | 119,542 | $ | 117,596 | $ | 111,263 | $ | 107,900 | |
| Portfolio
turnover | 23 | % | 2 | % | 6 | % | 16 | % | 13 | % |
| Net assets
applicable to common shareholders, end of year (000) | $ 116,152 | $ | 121,987 | $ | 117,739 | $ | 114,019 | $ | 108,172 | |
| Preferred
shares value outstanding, end of year (000) | $ 63,800 | $ | 63,800 | $ | 63,800 | $ | 63,800 | $ | 63,800 | |
| Asset
coverage per preferred share, end of year | $ 70,528 | $ | 72,812 | $ | 71,142 | $ | 69,682 | $ | 67,387 | |

See Notes to Financial Statements.

ANNUAL REPORT OCTOBER 31, 2007 51

Financial Highlights BlackRock New York Investment Quality Municipal Trust (RNY)

| | Year
Ended October 31, — 2007 | 2006 | | 2005 | | 2004 | | 2003 | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Per Common Share
Operating Performance | | | | | | | | | | |
| Net asset value,
beginning of year | $ 15.18 | $ | 15.03 | $ | 15.35 | $ | 15.34 | $ | 15.47 | |
| Investment operations: | | | | | | | | | | |
| Net
investment income | 0.95 | | 0.97 | | 0.96 | | 0.96 | | 1.03 | |
| Net
realized and unrealized gain (loss) | (0.61 | ) | 0.37 | | (0.26 | ) | | | (0.21 | ) |
| Dividends
and distributions to preferred shareholders from: | | | | | | | | | | |
| Net
investment income | (0.25 | ) | (0.21 | ) | (0.14 | ) | (0.07 | ) | (0.07 | ) |
| Net
realized gains | (0.01 | ) | (0.02 | ) | | | | | | |
| Net
increase from investment operations | 0.08 | | 1.11 | | 0.56 | | 0.89 | | 0.75 | |
| Dividends
and distributions to common shareholders from: | | | | | | | | | | |
| Net
investment income | (0.85 | ) | (0.88 | ) | (0.88 | ) | (0.88 | ) | (0.88 | ) |
| Net
realized gains | (0.01 | ) | (0.08 | ) | | | | | | |
| Total
dividends and distributions | (0.86 | ) | (0.96 | ) | (0.88 | ) | (0.88 | ) | (0.88 | ) |
| Net asset
value, end of year | $ 14.40 | $ | 15.18 | $ | 15.03 | $ | 15.35 | $ | 15.34 | |
| Market
price, end of year | $ 15.39 | $ | 16.65 | $ | 14.75 | $ | 14.50 | $ | 14.18 | |
| Total Investment
Returns 1 | | | | | | | | | | |
| At net
asset value | 0.10 | % | 7.32 | % | 3.97 | % | 6.48 | % | 5.42 | % |
| At market
value | (2.46 | )% | 19.95 | % | 8.01 | % | 8.81 | % | 4.69 | % |
| Ratios to Average Net
Assets of Common Shareholders 2 | | | | | | | | | | |
| Expenses
after fees waived and paid indirectly | 1.24 | % | 1.25 | % | 1.20 | % | 1.21 | % | 1.24 | % |
| Expenses
after fees waived and before fees paid indirectly | 1.29 | % | 1.33 | % | 1.24 | % | 1.24 | % | 1.24 | % |
| Expenses
before fees waived and paid indirectly | 1.29 | % | 1.33 | % | 1.24 | % | 1.24 | % | 1.24 | % |
| Net
investment income after fees waived and paid indirectly and before preferred
share dividends from net investment income | 6.42 | % | 6.48 | % | 6.30 | % | 6.29 | % | 6.68 | % |
| Preferred
share dividends from net investment income | 1.72 | % | 1.42 | % | 0.91 | % | 0.46 | % | 0.44 | % |
| Net
investment income available to common shareholders | 4.70 | % | 5.06 | % | 5.39 | % | 5.83 | % | 6.24 | % |
| Supplemental
Data | | | | | | | | | | |
| Average net
assets of common shareholders (000) | $ 19,329 | $ | 19,527 | $ | 19,993 | $ | 20,019 | $ | 20,158 | |
| Portfolio
turnover | 37 | % | 24 | % | 10 | % | 23 | % | 36 | % |
| Net assets
applicable to common shareholders, end of year (000) | $ 18,848 | $ | 19,839 | $ | 19,643 | $ | 20,066 | $ | 20,053 | |
| Preferred
shares value outstanding, end of year (000) | $ 9,800 | $ | 9,800 | $ | 9,800 | $ | 9,800 | $ | 9,800 | |
| Asset
coverage per preferred share, end of year | $ 73,090 | $ | 75,614 | $ | 75,111 | $ | 76,195 | $ | 76,159 | |

See Notes to Financial Statements.

52 ANNUAL REPORT OCTOBER 31, 2007

Financial Highlights BlackRock New York Municipal Income Trust (BNY)

| | Year
Ended October 31, — 2007 | 2006 | | 2005 | | 2004 | | 2003 | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Per Common Share
Operating Performance | | | | | | | | | | |
| Net asset
value, beginning of year | $ 15.88 | $ | 15.44 | $ | 15.28 | $ | 14.76 | $ | 14.47 | |
| Investment
operations: | | | | | | | | | | |
| Net
investment income | 1.11 | | 1.13 | | 1.14 | | 1.14 | | 1.14 | |
| Net
realized and unrealized gain (loss) | (0.70 | ) | 0.47 | | 0.09 | | 0.36 | | 0.13 | |
| Dividends
to preferred shareholders from net investment income | (0.28 | ) | (0.26 | ) | (0.17 | ) | (0.08 | ) | (0.09 | ) |
| Net
increase from investment operations | 0.13 | | 1.34 | | 1.06 | | 1.42 | | 1.18 | |
| Dividends
to common shareholders from net investment income | (0.90 | ) | (0.90 | ) | (0.90 | ) | (0.90 | ) | (0.89 | ) |
| Net asset
value, end of year | $ 15.11 | $ | 15.88 | $ | 15.44 | $ | 15.28 | $ | 14.76 | |
| Market
price, end of year | $ 15.55 | $ | 17.35 | $ | 15.19 | $ | 13.99 | $ | 13.45 | |
| Total Investment
Returns 1 | | | | | | | | | | |
| At net
asset value | 0.64 | % | 8.91 | % | 7.38 | % | 10.46 | % | 8.84 | % |
| At market
value | (5.20 | )% | 20.95 | % | 15.38 | % | 10.99 | % | 6.95 | % |
| Ratios to Average Net
Assets of Common Shareholders 2 | | | | | | | | | | |
| Expenses
after fees waived and paid indirectly | 0.92 | % | 0.87 | % | 0.86 | % | 0.87 | % | 0.88 | % |
| Expenses
after fees waived and before fees paid indirectly | 0.92 | % | 0.88 | % | 0.87 | % | 0.87 | % | 0.89 | % |
| Expenses
before fees waived and paid indirectly | 1.22 | % | 1.25 | % | 1.26 | % | 1.27 | % | 1.29 | % |
| Net
investment income after fees waived and paid indirectly and before preferred
share dividends from net investment income | 7.23 | % | 7.30 | % | 7.35 | % | 7.62 | % | 7.73 | % |
| Preferred
share dividends from net investment income | 1.84 | % | 1.69 | % | 1.08 | % | 0.56 | % | 0.62 | % |
| Net
investment income available to common shareholders | 5.39 | % | 5.61 | % | 6.27 | % | 7.06 | % | 7.11 | % |
| Supplemental
Data | | | | | | | | | | |
| Average net
assets of common shareholders (000) | $ 195,754 | $ | 195,439 | $ | 194,038 | $ | 188,476 | $ | 183,648 | |
| Portfolio
turnover | 23 | % | 27 | % | 24 | % | 13 | % | 14 | % |
| Net assets
applicable to common shareholders, end of year (000) | $ 190,962 | $ | 199,717 | $ | 193,457 | $ | 191,274 | $ | 184,874 | |
| Preferred
shares value outstanding, end of year (000) | $ 109,750 | $ | 109,750 | $ | 109,750 | $ | 109,750 | $ | 109,750 | |
| Asset
coverage per preferred share, end of year | $ 68,509 | $ | 70,502 | $ | 69,073 | $ | 68,575 | $ | 67,115 | |

See Notes to Financial Statements.

ANNUAL REPORT OCTOBER 31, 2007 53

Notes to Financial Statements

Note 1. Organization & Accounting Policies

BlackRock Investment Quality Municipal Trust Inc. (Investment Quality Municipal), BlackRock California Investment Quality Municipal Trust Inc. (California Investment Quality), BlackRock New Jersey Investment Quality Municipal Trust Inc. (New Jersey Investment Quality) and BlackRock New York Investment Quality Municipal Trust Inc. (New York Investment Quality) were organized as Maryland corporations. BlackRock Florida Investment Quality Municipal Trust (Florida Investment Quality) was organized as a Massachusetts business trust. Investment Quality Municipal, California Investment Quality, Florida Investment Quality, New Jersey Investment Quality and New York Investment Quality are herein referred to as the Investment Quality Trusts. BlackRock Municipal Income Trust (Municipal Income), BlackRock California Municipal Income Trust (California Income), BlackRock Florida Municipal Income Trust (Florida Income), BlackRock New Jersey Municipal Income Trust (New Jersey Income), BlackRock New York Municipal Income Trust (New York Income) (collectively the Income Trusts) and BlackRock Long-Term Municipal Advantage Trust (Long-Term Municipal) were organized as Delaware statutory trusts. The Investment Quality Trusts, Income Trusts and Long-Term Municipal are referred to herein collectively as the Trusts. Investment Quality Municipal and Municipal Income are registered as diversified, closed-end management investment companies under the Investment Company Act of 1940, as amended (the 1940 Act). California Investment Quality, California Income, Florida Investment Quality, Florida Income, Long-Term Municipal, New Jersey Investment Quality, New Jersey Income, New York Investment Quality and New York Income are registered as non-diversified, closed-end management investment companies under the 1940 Act.

Long-Term Municipal was organized on November 7, 2005 and had no capital transactions until January 4, 2006 when the Trust sold 9,704 common shares for $139,010 to BlackRock Funding, Inc. Investment operations for Long-Term Municipal commenced on February 28, 2006. Long-Term Municipal incurred organization costs which were deferred from the organization date until the commencement of operations.

The following is a summary of significant accounting policies followed by the Trusts.

Investments Valuation: Municipal investments (including commitments to purchase such investments on a when-issued basis) are valued on the basis of prices provided by dealers or pricing services selected under the supervision of each Trusts Board of Trustees or Board of Directors, as appropriate (Trustees or a Board). In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments as appropriate, quotations from bond dealers, market transactions in comparable investments and various relationships between investments. Swap quotations are provided by dealers selected under supervision of the Board. Short-term securities may be valued at amortized cost. Investments in open-end investment companies are valued at net asset value per share. Any investments or other assets for which such current market quotations are not readily available are valued at fair value (Fair Value Assets) as determined in good faith under procedures established by, and under the general supervision and responsibility of, each Trusts Board. The investment advisor and/or sub-advisor will submit its recommendations regarding the valuation and/or valuation methodologies for Fair Value Assets to a valuation committee. The valuation committee may accept, modify or reject any recommendations. The pricing of all Fair Value Assets shall be subsequently reported to the Board.

When determining the price for a Fair Value Asset, the investment advisor and/or sub-advisor shall seek to determine the price that the Trust might reasonably expect to receive from the current sale of that asset in an armslength transaction. Fair value determinations shall be based upon all available factors that the investment advisor and/or sub-advisor deems relevant.

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (FAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. At this time, management is evaluating the implications of FAS 157 and its impact on the Trusts financial statements, if any, has not been determined.

In addition, in February 2007, Statement of Financial Accounting Standards No. 159, The Fair Value Option for Financial Assets and Financial Liabilities (FAS 159). was issued and is effective for fiscal years beginning after November 15, 2007. Early adoption is permitted as of the beginning of a fiscal year that begins on or before November 15, 2007, provided the entity also elects to apply the provisions of FAS 157. FAS 159 permits entities to choose to measure many financial instruments and certain other items at fair value that are not currently required to be measured as fair value. FAS 159 also establishes presentation and disclosure requirements designed to facilitate comparisons between entities that choose different measurement attributes for similar types of assets and liabilities. At this time, management is evaluating the implications of FAS 159 and its impact on the Trusts financial statements, if any, had not been determined.

Forward Commitments, When-Issued and Delayed Delivery Securities: The Portfolios may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. The Portfolios may purchase securities under such conditions only with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Portfolios may be required to pay more at settlement than the security is worth. In addition, the purchaser is not entitled to any of the interest earned prior to settlement. Upon making a commitment to purchase a security on a when-issued forward commitment basis, the Portfolios will hold liquid assets worth at least the equivalent of the amount due.

Investment Transactions and Investment Income: Investment transactions are recorded on trade date. The cost of investments sold and the related gain or loss is determined by use of the specific identification method, generally first-in, first-out, for both financial reporting and federal income tax purposes. Dividend income is recorded on the ex-dividend dates. Each Trust

54 ANNUAL REPORT OCTOBER 31, 2007

Notes to Financial Statements (continued)

also records interest income on an accrual basis and amortizes premium and/or accretes discount on securities purchased using the interest method.

Financial Futures Contracts: A futures contract is an agreement between two parties to buy and sell a financial instrument for a set price on a future date. Initial margin deposits are made upon entering into futures contracts and can be either cash or securities. During the period the futures contract is open, changes in the value of the contract are recognized as unrealized gains or losses by marking-to-market on a daily basis to reflect the market value of the contract at the end of each days trading. Variation margin payments are made or received, depending upon whether unrealized gains or losses are incurred. When the contract is closed, the Trust records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Trusts basis in the contract.

Financial futures contracts, when used by the Trusts, help in maintaining a targeted duration. Futures contracts can be sold to effectively shorten an otherwise longer duration portfolio. In the same sense, futures contracts can be purchased to lengthen a portfolio that is shorter than its duration target. Thus, by buying or selling futures contracts, the Trusts may attempt to manage the duration of positions so that changes in interest rates do not change the duration of the portfolio unexpectedly.

Forward Starting Swaps: Forward starting swaps are an agreement for an interest rate swap asset or liability to be created or sold in the future. Interest rate swaps are an agreement in which one party pays a floating rate of interest on a notional principal amount and receives a fixed rate of interest on the same notional principal amount for a specified period of time. Alternatively, a party may pay a fixed rate and receive a floating rate. The Trusts close each forward starting swap before the accrual date specified in the agreement and therefore never enter into the interest rate swap underlying each forward starting swap.

During the term of the swap, changes in the value of the swap are recognized as unrealized gains or losses by marking-to-market daily based upon quotations from market makers to reflect the market value of the swap. When the swap is terminated, a Trust will record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Trusts basis in the contract, if any.

Entering into these agreements involves, to varying degrees, elements of credit and market risk in excess of the amounts recognized on the Statements of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counter-party to the agreement may default on its obligation to perform and that there may be unfavorable changes in the fluctuation of interest and/or exchange rates. However, the investment advisor of the Trusts monitor swaps and do not anticipate non-performance by any counterparty.

Segregation: In cases in which the 1940 Act, and the interpretive positions of the Securities and Exchange Commission (the Commission) require that each Trust segregate assets in connection with certain investments (e.g., when-issued securities or forward starting swaps), each Trust will, consistent with certain interpretive letters issued by the Commission, designate on its books and records cash or other liquid securities having a market value at least equal to the amount that would otherwise be required to be physically segregated.

Federal Income Taxes: It is each Trusts intention to continue to be treated as a regulated investment company under Subchapter M of the Internal Revenue Code and to distribute sufficient net income and net realized capital gains, if any, to shareholders. Therefore, no federal income tax provisions have been recorded.

In July 2006, the Financial Accounting Standards Board issued Interpretation No. 48 (FIN 48) Accounting for Uncertainty in Income Taxes and interpretation of FAS Statement No. 109. FIN 48 prescribes the minimum recognition threshold a tax position must meet in connection with accounting for uncertainties in income tax positions taken or expected to be taken by an entity, including mutual funds, before being measured and recognized in the financial statements. Adoption of FIN 48 is required for the last net asset value calculation in the first required financial statement reporting period for fiscal years beginning after December 15, 2006. The impact on each of the Trusts financial statements, if any, is currently being assessed.

Dividends and Distributions: Each Trust declares and pays dividends and distributions to common shareholders monthly from net investment income, net realized short-term capital gains and other sources, if necessary. Net long-term capital gains, if any, in excess of loss carryforwards may be distributed in accordance with the 1940 Act. Dividends and distributions are recorded on the ex-dividend date. Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America. Dividends and distributions to preferred shareholders are accrued and determined as described in Note 6.

Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates and such differences may be material.

Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan: Under the deferred compensation plan approved by each Trusts Board, non-interested Trustees (Independent Trustees) defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of other BlackRock closed-end trusts selected by the Independent Trustees. These amounts are shown on the Statement of Assets and Liabilities as Investments in Affiliates. This has the same economic effect for the Independent Trustees as if the Independent Trustees had invested the deferred amounts in such Trusts.

The deferred compensation plan is not funded and obligations thereunder represent general unsecured claims against the general assets of the Trust.

ANNUAL REPORT OCTOBER 31, 2007 55

Notes to Financial Statements (continued)

Each Trust may, however, elect to invest in common shares of those Trusts selected by the Independent Trustees in order to match its deferred compensation obligations.

Other: Expenses that are directly related to one of the Trusts are charged directly to that Trust. Other operating expenses are generally pro-rated to the Trusts on the basis of relative net assets of all the BlackRock Closed-End Funds.

Note 2. Municipal Bonds Held in Trust

Long-Term Municipal invests in highly leveraged residual certificates (TOB Residuals) issued by tender option bond trusts (TOBs). A TOB is established by a third party sponsor forming a special purpose entity, into which Long-Term Municipal, or an agent on behalf of Long-Term Municipal, transfers municipal securities. A TOB typically issues two classes of beneficial interests: short-term floating rate certificates, which are sold to third party investors, and residual certificates, which are generally issued to Long-Term Municipal. The transfer of the municipal securities to a TOB does not qualify for sale treatment under Statement of Financial Accounting Standards No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities, therefore the municipal securities deposited into a TOB are presented in Long-Term Municipals schedule of investments and the proceeds from the transaction are reported as a liability for trust certificates of Long-Term Municipal. Similarly, proceeds from residual certificates issued to affiliates, if any, from the transaction are included in the liability for trust certificates. Interest income from the underlying security is recorded by Long-Term Municipal on an accrual basis. Interest expense incurred on the secured borrowing and other expenses relating to remarketing, administration and trustee services to a TOB are reported as expenses of Long-Term Municipal. The floating rate certificates have interest rates that generally reset weekly and their holders have the option to tender certificates to the TOB for redemption at par at each reset date. The residual interests held by Long-Term Municipal include the right of Long-Term Municipal (1) to cause the holders of a proportional share of floating rate certificates to tender their certificates at par, and (2) to transfer a corresponding share of the municipal securities from the TOB to Long-Term Municipal. The proceeds received from the transaction are used by Long-Term Municipal to purchase additional municipal bonds or other investments permitted by Long-Term Municipals investment policies. At October 31, 2007, the aggregate value of the underlying municipal securities transferred to TOBs was $177,087,696, the related liability for the trust certificates was $177,527,503, and the range of interest rates was 4.07% to 3.39%.

Financial transactions executed through TOBs generally will under perform the market for fixed rate municipal bonds in a rising interest rate environment, but tend to outperform the market for fixed rate bonds when interest rates decline or remain relatively stable. Should short-term interest rates rise, Long-Term Municipals investment in TOB Residuals likely will adversely affect Long-Term Municipals net investment income and dividends to shareholders. Fluctuations in the market value of municipal securities deposited into the TOB may adversely affect Long-Term Municipals net asset value per share. Long-Term Municipal invests in highly leveraged TOB Residuals and consequently may lose money in excess of the amount of its investment. Long-Term Municipal invests in residual certificates for the purpose of using economic leverage as a more flexible alternative to the issuance of preferred shares.

Note 3. Agreements and Other Transactions with Affiliates and Related Parties

Each Trust has an Investment Management Agreement with BlackRock Advisors, LLC (the Advisor), a wholly owned subsidiary of BlackRock, Inc. BlackRock Financial Management, Inc. (BFM), a wholly owned subsidiary of BlackRock, Inc., serves as sub-advisor to each Trust. Merrill Lynch & Co., Inc. and The PNC Financial Services Group, Inc. are principal owners of BlackRock, Inc. The investment management agreement for each Income Trust and Long-Term Municipal covers both investment advisory and administration services. Each Investment Quality Trust has an Administration Agreement with the Advisor.

The Trusts investment advisory fee paid to the Advisor is computed weekly and payable monthly based on an annual rate, 0.35% for the Investment Quality Trusts and 0.60% for the Income Trusts, of the Trusts average weekly managed assets. Managed assets means the total assets of a Trust (including any assets attributable to any preferred shares that may be outstanding) minus the sum of accrued liabilities (other than debt representing financial leverage). The Advisor has voluntarily agreed to waive a portion of the investment advisory fee or other expenses on the Income Trusts as a percentage of managed assets as follows: 0.25% for the first five years of each of the Trusts operations from 2001 through July 31, 2006, 0.20% through July 31, 2007, 0.15% through July 31, 2008, 0.10% through July 31, 2009 and 0.05% through July 31, 2010.

Long-Term Municipals investment advisory fee paid to the Advisor is computed weekly and payable monthly based on an annual rate equal to 1.00% of the average weekly net assets. Net Assets means the total assets of the Trust minus the sum of accrued liabilities. The Advisor has voluntarily agreed to waive a portion of the investment advisory or other expenses of Long-Term Municipal in the amount of 0.40% of the average weekly value of the Long-Term Municipals Net Assets for the first five years of the Trusts operations from 2006 through 2011 and for declining amounts for the following three years, 0.30% in 2012, 0.20% in 2013 and 0.10% in 2014.

The administration fee paid to the Advisor is computed weekly and payable monthly based on an annual rate of 0.15% for the Municipal Investment Quality Trust and 0.10% for the California Investment Quality, Florida Investment Quality, New Jersey Investment Quality and New York Investment Quality of the Trusts average weekly managed assets.

The Advisor has agreed to reimburse its advisory fees by the amount of investment advisory fees each Trust pays to the Advisor indirectly through its investments in affiliated money market funds, which is shown on the Statements of Operations as fees reimbursed by Advisor.

The Advisor pays BFM fees for its sub-advisory services.

Pursuant to the agreements, the Advisor provides continuous supervision of the investment portfolio and pays the compensation of officers of each Trust who are affiliated persons of the Advisor, as well as occupancy and certain clerical and accounting costs of each Trust. Each Trust bears all other costs and expenses, which include reimbursements to the Advisor for costs of employees that provide pricing and secondary market support to each Trust.

56 ANNUAL REPORT OCTOBER 31, 2007

Notes to Financial Statements (continued)

These expenses are generally pro-rated to the Trusts on the basis of relative net assets of all the BlackRock Closed-End Funds. For the year ended October 31, 2007, the Trusts reimbursed the Advisor the following amounts, which are included in miscellaneous expenses in the Statement of Operations:

Trust	Amount
Investment
Quality Municipal	$ 11,377
Municipal
Income	25,403
Long-Term
Municipal	4,520
California
Investment Quality	653
California
Income	9,666
Florida
Investment Quality	762
Florida
Income	4,435
New Jersey
Investment Quality	660
New Jersey
Income	4,936
New York
Investment Quality	892
New York
Income	8,321

Pursuant to the terms of their custody agreement, each Trust received earnings credits from its custodian for positive cash balances maintained, which are used to offset custody fees. These credits are shown on the Statements of Operations as fees paid indirectly.

Investments in companies considered to be an affiliate of the Trusts, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Trust	Portfolio Company	Net Purchases (000)	Dividend Income
Investment Quality
Municipal	Merrill Lynch Institutional Tax-Exempt Fund	5,500	$ 111,947
Municipal Income	Merrill Lynch Institutional Tax-Exempt Fund	2,600	134,765
Long-Term Municipal	Merrill Lynch Institutional Tax-Exempt Fund	2,600	79,642
California
Investment Quality	CMA California Mun. Money Fund	418	17,741
California Income	CMA California Mun. Money Fund	6,944	146,193
Florida Investment
Quality	CMA Florida Mun. Money Fund	211	10,580
Florida Income	CMA Florida Mun. Money Fund	1,763	63,692
New Jersey
Investment Quality	CMA New Jersey Mun. Money Fund	4	4,441
New Jersey Income	CMA New Jersey Mun. Money Fund	223	23,253
New York
Investment Quality	CMA New York Mun. Money Fund	107	7,516
New York Income	CMA New York Mun. Money Fund	47	47,163

During the year ended October 31, 2007, Merrill Lynch & Co., Inc., through their affiliated broker dealer, Merrill Lynch, Pierce, Fenner & Smith, Inc., earned commissions on transactions of securities as follows:

Trust	Commission Amount
Long-Term Municipal	$ 1,320
California Investment Quality	66

Certain officers and/or directors of the Trusts are officers and/or directors of BlackRock, Inc., or its affiliates.

Note 4. Portfolio Securities

Purchases and sales of investment securities, other than short-term investments and U.S. government securities, for the year ended October 31, 2007, were as follows:

Trust	Purchases	Sales
Investment Quality Municipal	$ 77,168,375	$ 65,835,018
Municipal Income	191,700,172	167,846,528
Long-Term Municipal	142,851,650	148,116,196
California Investment Quality	11,104,253	7,823,079
California Income	92,386,284	96,318,080
Florida Investment Quality	13,548,302	9,411,023
Florida Income	43,263,431	38,130,102
New Jersey Investment Quality	9,961,956	6,369,742
New Jersey Income	42,569,982	43,047,179
New York Investment Quality	10,444,017	10,461,845
New York Income	71,420,649	70,232,607

Details of open forward starting swap agreements at October 31, 2007 were as follows:

Trust	Notional Amount		Counter Party	Effective Date	Termination Date	Unrealized Appreciation (Depreciation)
Investment Quality	$ 31,250,000	3.977 %	JP Morgan	01/04/08	01/04/23	$ (343,531	)
Municipal	8,500,000	3.861	JP Morgan	01/31/08	01/31/23	13,591
						$ (329,940	)
Municipal	$ 26,800,000	3.977 %	JP Morgan	01/04/08	01/04/23	$ (294,613	)
Income	17,160,000	3.971	CitiBank	12/21/07	12/21/27	498
	32,800,000	3.861	JP Morgan	01/31/08	01/31/23	52,447
						$ (241,668	)
Long-Term	$ 10,100,000	3.976 %	JP Morgan	01/04/08	01/04/23	$ (111,029	)
Municipal
Florida	$ 1,750,000	3.984 %	JP Morgan	11/30/07	11/30/22	$ (21,886	)
Investment	$ 2,000,000	3.855 %	Lehman	12/21/07	12/21/22	2,628
Quality						$ (19,258	)
New Jersey	$ 1,100,000	4.065 %	CitiBank	12/20/07	12/20/37	$ (729	)
Income
New York	$ 6,000,000	4.026 %	CitiBank	12/21/07	12/21/32	$ (2,826	)
Income

(a) Trust pays fixed interest rate and receives 1-week BMA Municipal Swap Index floating interest rate beginning on the effective date.

BMA - Bond Market Association.

Note 5. Income Tax Information

No provision is made for U.S. federal taxes as it is the portfolios intention to continue to qualify for and elect the tax treatment applicable to regulated investment companies under Subchapter M of the Internal Revenue Code of 1986, as amended, and to make the requisite distributions to its shareholders which will be sufficient to relieve it from federal income and excise taxes.

Reclassification of Capital Accounts: U.S. generally accepted accounting principles require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. Accordingly, the table below summarizes the amounts reclassified per Trust during the current year between undistributed (distributions in excess of) net investment income and accumulated net realized gain (loss) as a result of permanent differences attributable to amortization methods on fixed income

ANNUAL REPORT OCTOBER 31, 2007 57

Notes to Financial Statements (continued)

securities. These reclassifications have no effect on net assets or net asset values per share.

| Trust — Investment Quality
Municipal | $ (24,585 | ) | $ 24,585 | |
| --- | --- | --- | --- | --- |
| Municipal Income | (9 | ) | 9 | |
| Long-Term Municipal | 1,108 | | (1,108 | ) |
| California Investment
Quality | (2,707 | ) | 2,707 | |
| California Income | (21 | ) | 21 | |
| Florida Income | (34 | ) | 34 | |
| New Jersey Investment
Quality | (132 | ) | 132 | |
| New Jersey Income | (15 | ) | 15 | |
| New York Investment Quality | (7,444 | ) | 7,444 | |
| New York Income | (841 | ) | 841 | |

The tax character of distributions paid during the years ended October 31, 2007 and October 31, 2006 were as follows:

| Distributions Paid From: | Year
ended October 31, 2007 — Tax-exempt Income | Ordinary Income | Long-term Capital Gains | Total Distributions |
| --- | --- | --- | --- | --- |
| Investment Municipal
Quality | $ 22,514,181 | $ | $ | $ 22,514,181 |
| Municipal Income | 56,847,893 | 75,424 | | 56,923,317 |
| Long-Term Municipal | 9,535,364 | | | 9,535,364 |
| California Investment
Quality | 843,196 | | 68,629 | 911,825 |
| California Income | 18,339,053 | | | 18,339,053 |
| Florida Investment Quality | 967,562 | | 96,447 | 1,064,009 |
| Florida Income | 8,128,970 | | | 8,128,970 |
| New Jersey Investment
Quality | 1,067,344 | | 55,732 | 1,123,076 |
| New Jersey Income | 9,372,085 | | | 9,372,085 |
| New York Investment Quality | 1,446,723 | | 26,367 | 1,473,090 |
| New York Income | 14,996,361 | | | 14,996,361 |

| Distributions Paid From: | Year
ended October 31, 2006 — Tax-exempt Income | Ordinary Income | Long-term Capital Gains | Total Distributions |
| --- | --- | --- | --- | --- |
| Investment Municipal
Quality | $ 22,393,077 | $ | $ | $ 22,393,077 |
| Municipal Income | 55,387,719 | | | 55,387,719 |
| Long-Term Municipal | 6,393,277 | | | 6,393,277 |
| California Investment
Quality | 1,069,125 | | | 1,069,125 |
| California Income | 17,652,513 | | | 17,652,513 |
| Florida Investment Quality | 1,193,991 | 2,626 | 339,437 | 1,536,054 |
| Florida Income | 7,830,368 | | | 7,830,368 |
| New Jersey Investment
Quality | 1,051,755 | | 152,406 | 1,204,161 |
| New Jersey Income | 9,057,294 | | | 9,057,294 |
| New York Investment Quality | 1,423,375 | | 129,549 | 1,552,924 |
| New York Income | 14,642,419 | | | 14,642,419 |

As of October 31, 2007, the components of distributable earnings on a tax basis were as follows:

Trust	Undistributed Tax-exempt Income	Undistributed Ordinary Income	Undistributed Long-term Gain/(Loss)		Unrealized Gain/(Loss) Net
Investment Municipal
Quality	$ 2,966,144	$	$ (779,990	)	$ 11,805,105
Municipal Income	5,342,158		(32,878,847	)	42,784,268
Long-Term Municipal			(652,595	)	(6,519,481	)
California Investment
Quality	12,064		(5,173	)	546,481
California Income	2,865,807		(6,301,496	)	15,040,257
Florida Investment Quality	16,357		(137,267	)	242,511
Florida Income	1,250,295		(1,222,992	)	5,745,016
New Jersey Investment
Quality	185,383		(55,066	)	444,705
New Jersey Income	1,764,166		(1,225,312	)	9,007,803
New York Investment Quality	161,923	14,189	167,624		813,667
New York Income	3,714,675		(729,073	)	8,530,692

The difference between book-basis and tax-basis unrealized gains/losses is attributable primarily to amortization methods of premiums and discounts on fixed income securities, the tax deferral of losses on wash sales, the timing of recognition of income from partnership investments, the difference between the book and tax treatment of residual interests in tender option bonds and other temporary differences.

For federal income tax purposes, the following Trusts had capital loss carryforwards at October 31, 2007, the Trusts last tax year-end except for New York Income which had its last tax year-end at July 31, 2007. These amounts may be used to offset future realized capital gains, if any:

| Trust | Capital
Loss Carryforward Amount | |
| --- | --- | --- |
| Investment Quality
Municipal | $ 779,990 | 2014 |
| Municipal Income | $ 11,431,206 | 2011 |
| | 15,767,388 | 2012 |
| | 4,991,782 | 2014 |
| | 688,471 | 2015 |
| | $ 32,878,847 | |
| Long-Term Municipal | $ 701,315 | 2014 |
| California Investment
Quality | $ 5,173 | 2015 |
| California Income | $ 7,607 | 2011 |
| | 4,943,577 | 2012 |
| | 1,350,312 | 2014 |
| | $ 6,301,496 | |
| Florida Investment Quality | $ 137,267 | 2015 |
| Florida Income | $ 796,318 | 2012 |
| | 426,674 | 2015 |
| | $ 1,222,992 | |
| New Jersey Investment
Quality | $ 55,066 | 2015 |
| New Jersey Income | $ 610,058 | 2012 |
| | 615,254 | 2015 |
| | $ 1,225,312 | |
| New York Income | $ 197,144 | 2012 |

Note 6. Capital

There are 200 million of $0.01 par value common shares authorized for each of the Investment Quality Trusts. There are an unlimited number of $0.001 par value common shares authorized for the Income Trusts and Long-Term Municipal. Each Trust may classify or reclassify any unissued common shares into one or more series of Auction Market Preferred Shares (preferred shares). At October 31, 2007, the shares owned by an affiliate of the Advisor of Long-Term Municipal were 9,704.

58 ANNUAL REPORT OCTOBER 31, 2007

Notes to Financial Statements (continued)

During the years ended October 31, 2007 and 2006, the following Trusts issued additional shares under their respective dividend reinvestment plan:

| Trust — Investment Quality
Municipal | 83,554 | |
| --- | --- | --- |
| Municipal Income | 197,269 | 183,235 |
| Long-Term Municipal | 36,210 | 34,238 |
| California Income | 61,958 | 45,581 |
| Florida Income | 16,959 | 14,192 |
| New Jersey Investment
Quality | 1,972 | |
| New Jersey Income | 39,482 | 42,417 |
| New York Investment Quality | 1,724 | |
| New York Income | 56,191 | 52,616 |

Long-Term Municipal, which commenced operation on February 28, 2006, issued 13,049,704 common shares under the initial public offering. An additional 225,000 shares were issued by the underwriters exercising their over-allotment option. Offering costs incurred in connection with the offering of common shares have been charged against the proceeds from the initial common share offering in the amount of $381,825.

As of October 31, 2007, each Trust had the following series of preferred shares outstanding as listed in the table below. The preferred shares have a liquidation value of $25,000 per share plus any accumulated unpaid dividends.

| Trust — Investment Quality
Municipal | T7 | 3,262 |
| --- | --- | --- |
| | T28 | 2,600 |
| Municipal Income | M7 | 3,001 |
| | T7 | 3,001 |
| | W7 | 3,001 |
| | R7 | 3,001 |
| | F7 | 3,001 |
| California Investment
Quality | W7 | 300 |
| California Income | T7 | 2,639 |
| | R7 | 2,639 |
| Florida Investment Quality | R7 | 340 |
| Florida Income | T7 | 2,302 |
| New Jersey Investment
Quality | T7 | 300 |
| New Jersey Income | R7 | 2,552 |
| New York Investment Quality | F7 | 392 |
| New York Income | W7 | 2,195 |
| | F7 | 2,195 |

Dividends on seven-day preferred shares are cumulative at a rate which is reset every seven days based on the results of an auction. Dividends on 28-day preferred shares are cumulative at a rate which resets every 28 days based on the results of an auction. The dividend ranges and average on the preferred shares for each of the Trusts for the year ended October 31, 2007 were as follows:

| Trust — Investment Quality
Municipal | T7 | 3.13 % | 4.00 % | 3.59 % |
| --- | --- | --- | --- | --- |
| | T28 | 3.35 | 4.30 | 3.71 |
| Municipal Income | M7 | 3.10 | 4.05 | 3.63 |
| | T7 | 3.10 | 4.25 | 3.63 |
| | W7 | 3.16 | 4.02 | 3.60 |
| | R7 | 3.00 | 4.05 | 3.60 |
| | F7 | 3.10 | 4.00 | 3.58 |
| California Investment
Quality | W7 | 2.90 | 5.10 | 3.42 |
| California Income | T7 | 2.50 | 4.00 | 3.53 |
| | R7 | 2.90 | 4.00 | 3.43 |
| Florida Investment Quality | R7 | 3.50 | 5.40 | 3.95 |
| Florida Income | T7 | 3.30 | 4.10 | 3.64 |
| New Jersey Investment
Quality | T7 | 2.00 | 5.11 | 3.39 |
| New Jersey Income | R7 | 2.50 | 4.10 | 3.49 |
| New York Investment Quality | F7 | 2.00 | 4.10 | 3.48 |
| New York Income | W7 | 2.85 | 4.00 | 3.29 |
| | F7 | 2.89 | 4.00 | 3.27 |

A Trust may not declare dividends or make other distributions on common shares or purchase any such shares if, at the time of the declaration, distribution or purchase, asset coverage with respect to the outstanding preferred shares would be less than 200%.

The preferred shares are redeemable at the option of each Trust, in whole or in part, on any dividend payment date at $25,000 per share plus any accumulated unpaid dividends whether or not declared. The preferred shares are also subject to mandatory redemption at $25,000 per share plus any accumulated or unpaid dividends, whether or not declared, if certain requirements relating to the composition of the assets and liabilities of a Trust, as set forth in each Trusts Declaration of Trust/Articles Supplementary, are not satisfied.

The holders of preferred shares have voting rights equal to the holders of common shares (one vote per share) and will vote together with holders of common shares as a single class. However, holders of preferred shares, voting as a separate class, are also entitled to elect two Trustees for each Trust. In addition, the 1940 Act requires that along with approval by shareholders that might otherwise be required, the approval of the holders of a majority of any outstanding preferred shares, voting separately as a class would be required to (a) adopt any plan of reorganization that would adversely affect the preferred shares, (b) change a Trusts subclassification as a closed-end investment company or change its fundamental investment restrictions and (c) change its business so as to cease to be an investment company.

ANNUAL REPORT OCTOBER 31, 2007 59

Notes to Financial Statements (concluded)

Note 7. Concentration Risk

The Trusts concentrate their investments in securities issued by state agencies, other governmental entities and U.S. Territories. The Trusts are more susceptible to adverse financial, social, environmental, economic, regulatory and political factors that may affect these states agencies, other governmental entities and U.S. Territories, which could seriously affect the ability of these states and their municipal subdivisions to meet continuing obligations for principal and interest payments and therefore could impact the value of the Trusts investments and net asset value per share, than if the Trusts were not concentrated in securities issued by state agencies, other governmental entities and U.S. Territories.

Many municipalities insure repayment for their obligations. Although bond insurance reduces the risk of loss due to default by an issuer, such bonds remain subject to the risk that market value may fluctuate for other reasons and there is no assurance that the insurance company will meet its obligations. These securities have been identified in the Portfolios of Investments.

Note 8. Subsequent Events

Subsequent to October 31, 2007, the Board of each Trust declared dividends from undistributed earnings per common share payable December 1, 2007, to shareholders of record on November 15, 2007. The per share common dividends declared were as follows:

Trust	Common Dividend Per Share
Investment Quality
Municipal	$ 0.082500
Municipal Income	0.080000
Long-Term Municipal	0.055000
California Investment
Quality	0.048000
California Income	0.076074
Florida Investment Quality	0.048000
Florida Income	0.075375
New Jersey Investment
Quality	0.068000
New Jersey Income	0.079625
New York Investment Quality	0.070000
New York Income	0.075339

The dividends declared on preferred shares for the period November 1, 2007 to November 30, 2007 for each of the Trusts were as follows:

Trust		Dividends Declared
Investment Quality
Municipal	T7	$ 240,866
	T28	236,860
Municipal Income	M7	207,129
	T7	205,448
	W7	222,854
	R7	263,308
	F7	243,081
California Investment
Quality	W7	18,072
California Income	T7	191,064
	R7	216,979
Florida Investment Quality	R7	33,092
Florida Income	T7	168,552
New Jersey Investment
Quality	T7	19,332
New Jersey Income	R7	207,273
New York Investment Quality	F7	30,623
New York Income	W7	119,101
	F7	165,876

60 ANNUAL REPORT OCTOBER 31, 2007

Report of Independent Registered Public Accounting Firm

| To the Trustees and Shareholders
of: |
| --- |
| BlackRock Investment Quality Municipal
Trust, Inc. |
| BlackRock Municipal Income Trust |
| BlackRock Long-Term Municipal Advantage
Trust |
| BlackRock California Investment Quality
Municipal Trust,
Inc. |
| BlackRock California Municipal Income
Trust |
| BlackRock Florida Investment Quality
Municipal Trust, Inc. |
| BlackRock Florida Municipal Income Trust |
| BlackRock New Jersey Investment Quality
Municipal Trust,
Inc. |
| BlackRock New Jersey Municipal Income
Trust |
| BlackRock New York Investment Quality
Municipal Trust,
Inc. |
| BlackRock New York Municipal
Income Trust |
| (Collectively
the Trusts) |

We have audited the accompanying statements of assets and liabilities of the Trusts, including the portfolios of investments, as of October 31, 2007, the related statements of operations for the year then ended, and the statements of changes in net assets and the financial highlights for each of the periods presented and the statement of cash flows for BlackRock Long-Term Municipal Advantage Trust for the year ended October 31, 2007. These financial statements and financial highlights are the responsibility of the Trusts management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Trusts are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trusts internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of October 31, 2007, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Trusts as of October 31, 2007, the results of their operations and the cash flows for BlackRock Long-Term Municipal Advantage Trust for the year then ended, and the changes in their net assets and financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP

Boston, Massachusetts December 24, 2007

ANNUAL REPORT OCTOBER 31, 2007 61

T he Benefits and Risks of Leveraging (unaudited)

The Trusts utilize leveraging to seek to enhance the yield and net asset value of its Common Stock. However, these objectives cannot be achieved in all interest rate environments. To leverage, the Trusts may issue Preferred Stock, which pays dividends at prevailing short-term interest rates, and invests the proceeds in long-term municipal bonds. The interest earned on these investments, net of dividends to Preferred Stock, is paid to Common Stock shareholders in the form of dividends, and the value of these Trusts holdings is reflected in the per share net asset value of the Trusts Common Stock. However, in order to benefit Common Stock shareholders, the yield curve must be positively sloped; that is, short-term interest rates must be lower than long-term interest rates. At the same time, a period of generally declining interest rates will benefit Common Stock shareholders. If either of these conditions change, then the risks of leveraging will begin to outweigh the benefits.

To illustrate these concepts, assume a Trusts Common Stock capitalization of $100 million and the issuance of Preferred Stock for an additional $50 million, creating a total value of $150 million available for investment in long-term municipal bonds. If prevailing short-term interest rates are approximately 3% and long-term interest rates are approximately 6%, the yield curve has a strongly positive slope. The Trust pays dividends on the $50 million of Preferred Stock based on the lower short-term interest rates. At the same time, the Trusts total portfolio of $150 million earns the income based on long-term interest rates. Of course, increases in short- term interest rates would reduce (and even eliminate) the dividends on the Common Stock.

In this case, the dividends paid to Preferred Stock shareholders are significantly lower than the income earned on the trusts long-term investments and, therefore, the Common Stock shareholders are the beneficiaries of the incremental yield. However, if short-term interest rates rise, narrowing the differential between short-term and long-term interest rates, the incremental yield pickup on the Common Stock will be reduced or eliminated completely. At the same time, the market value of the trusts Common Stock (that is, its price as listed on the New York Stock Exchange or American Stock Exchange) may, as a result, decline. Furthermore, if long-term interest rates rise, the Common Stocks net asset value will reflect the full decline in the price of the portfolios investments, since the value of the Trusts Preferred Stock does not fluctuate. In addition to the decline in net asset value, the market value of the trusts Common Stock may also decline.

As of October 31, 2007 the Trusts had the following leverage amounts, due to Auction Market Preferred Shares (AMPS), to total net assets before the deduction of AMPS of:

Trust	Leverage %
Investment Quality Municipal	37%
Municipal Income	37%
California Investment Quality	35%
California Income	37%
Florida Investment Quality	36%
Florida Income	36%
New Jersey Investment Quality	35%
New Jersey Income	35%
New York Income	34%
New York Investment Quality	37%

As a part of its investment strategy, the Trusts may invest in certain securities whose potential income return is inversely related to changes in a floating interest rate (inverse floaters). In general, income on inverse floaters will decrease when short-term interest rates increase and increase when short-term interest rates decrease. Investments in inverse floaters may be characterized as derivative securities and may subject the Trusts to the risks of reduced or eliminated interest payments and losses of invested principal. In addition, inverse floaters have the effect of providing investment leverage and, as a result, the market value of such securities will generally be more volatile than that of fixed rate, tax-exempt securities. To the extent a Trust invests in inverse floaters, the market value of the Trusts portfolio and net asset value of the Trusts shares may also be more volatile than if the Trust did not invest in these securities.

Swap Agreements

The Trusts may invest in swap agreements, which are over-the-counter contracts in which one party agrees to make periodic payments based on the change in market value of a specified bond, basket of bonds, or index in return for periodic payments based on a fixed or variable interest rate or the change in market value of a different bond, basket of bonds or index. Swap agreements may be used to obtain exposure to a bond or market without owning or taking physical custody of securities. Swap agreements involve the risk that the party with whom each Fund has entered into a swap will default on its obligation to pay the Fund and the risk that the Fund will not be able to meet its obligation to pay the other party to the agreement.

62 ANNUAL REPORT OCTOBER 31, 2007

D ividend Reinvestment Plans (unaudited)

Pursuant to each Trusts Dividend Reinvestment Plan (the Plan), common shareholders are automatically enrolled to have all distributions of dividends and capital gains reinvested by Computershare Trust Company, N.A. (the Plan Agent) in the respective Trusts shares pursuant to the Plan. Shareholders who elect not to participate in the Plan will receive all distributions in cash paid by check and mailed directly to the shareholders of record (or if the shares are held in street or other nominee name, then to the nominee) by the Plan Agent, which serves as agent for the shareholders in administering the Plan.

At present after an Investment Quality Trust declares a dividend or determines to make a capital gain distribution, the Plan Agent will acquire shares for the participants account, by the purchase of outstanding shares on the open market, on the Trusts primary exchange or elsewhere (open market purchases). The Investment Quality Trusts do not presently issue any new shares under the Plan, which serves as agent for the shareholders in administering the Plan.

After the Income Trusts and Long-Term Municipal declare a dividend or determines to make a capital gain distribution, the Plan Agent will acquire shares for the participants accounts, depending upon the circumstances described below, either (i) through receipt of unissued but authorized shares from the Trust (newly issued shares) or (ii) by open market purchases. If, on the dividend payment date, the net asset value per share (NAV) is equal to or less than the market price per share plus estimated brokerage commissions (such condition being referred to herein as market premium), the Plan Agent will invest the dividend amount in newly issued shares on behalf of the participants. The number of newly issued shares to be credited to each participants account will be determined by dividing the dollar amount of the dividend by the NAV on the date the shares are issued. However, if the NAV is less than 95% of the market price on the payment date, the dollar amount of the dividend will be divided by 95% of the market price on the payment date. If, on the dividend payment date, the NAV is greater than the market value per share plus estimated brokerage commissions (such condition being referred to herein as market discount), the Plan Agent will invest the dividend amount in shares acquired on behalf of the participants in open market purchases.

At a meeting of the Boards of Trustees of the Investment Quality Trusts on November 21, 2006, the Boards approved an amendment to the Dividend Reinvestment Plans of each Investment Quality Trust. Although the Plans presently permit shares to be purchases only the open market, as a result of the amendment, the Plans will permit purchases of newly issued shares on terms similar to the Income Trusts described in the preceding paragraph. The amendments took effect on April 1, 2007.

Participants in the Plan may withdraw from the Plan upon written notice to the Plan Agent and will receive certificates for whole Trust shares and a cash payment for any fraction of a Trust share.

The Plan Agents fees for the handling of the reinvestment of dividends and distributions will be paid by each Trust. However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the Plan Agents open market purchases in connection with the reinvestment of dividends and distributions. The automatic reinvestment of dividends and distributions will not relieve participants of any Federal income tax that may be payable on such dividends or distributions.

Each Trust reserves the right to amend or terminate the Plan. There is no direct service charge to participants in the Plan, however, each Trust reserves the right to amend the Plan to include a service charge payable by the participants. Participants who request a sale of shares through the Plan Agent are subject to a $2.50 sales fee and a $0.15 per share sold brokerage commission. All correspondence concerning the Plan should be directed to the Plan Agent at 250 Royall Street, Canton, MA 02021, or (800) 699-1BFM.

BlackRock Privacy Principles

BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, Clients) and to safeguarding their nonpublic personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

BlackRock obtains or verifies personal nonpublic information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our Web sites.

BlackRock does not sell or disclose to nonaffiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to service Client accounts. These nonaffiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.

We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to nonpublic personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the nonpublic personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

ANNUAL REPORT OCTOBER 31, 2007 63

A dditional Information (unaudited)

60 Day Notice

All of the net investment income distributions paid by the BlackRock Closed-End Funds (Investment Quality Municipal Trust BKN, Municipal Income Trust BFK, Long-Term Advantage Trust BTA, California Investment Quality Municipal Trust RAA, California Municipal Income Trust BFZ, Florida Investment Quality Municipal Trust RFA, Florida Municipal Income Trust BBF, New Jersey Investment Quality Municipal Trust RNJ, New Jersey Municipal Income Trust BNJ, and New York Investment Quality Municipal Trust RNY) during the taxable year ended October 31, 2007 qualify as tax-exempt interest dividends for federal income tax purposes.

Additionally, the following summarizes the taxable per share distributions paid by the Fund during the year:

		Ordinary Income	Long-Term Capital Gains
Municipal Income
Trust BFK
Common Shareholders	12/29/2006	$ 0.001309
Preferred Shareholders
Series M7	12/19/2006	$ 1.24
Series T7	12/20/2006	$ 1.20
Series W7	12/14/2006	$ 1.19
Series R7	12/15/2006	$ 1.19
Series F7	12/18/2006	$ 1.18
California
Investment Quality Municipal Trust RAA
Common Shareholders	12/29/2006		$ 0.051512
Preferred Shareholders
Series W7	11/30/2006		$ 13.97
Series W7	12/07/2006		$ 15.82
Series W7	12/14/2006		$ 24.45
Series W7	12/21/2006		$ 16.06
Series W7	12/28/2006		$ 1.60
Florida
Investment Quality Municipal Trust RFA
Common Shareholders	12/29/2006		$ 0.047441
Preferred Shareholders
Series R7	12/01/2006		$ 23.01
Series R7	12/08/2006		$ 23.01
Series R7	12/15/2006		$ 23.01
Series R7	12/22/2006		$ 24.93
Series R7	12/29/2006		$ 25.89
New Jersey
Investment Quality Municipal Trust RNJ
Common Shareholders	12/29/2006		$ 0.037843
Preferred Shareholders
Series T7	12/06/2006		$ 24.50
Series T7	12/13/2006		$ 14.38
Series T7	12/20/2006		$ 20.14
Series T7	12/27/2006		$ 16.54
New York Investment
Quality Municipal Trust RNY
Common Shareholders	12/29/2006		$ 0.13673
Preferred Shareholders
Series R7	12/04/2006		$ 16.30
Series R7	12/11/2006		$ 5.37

The Joint Annual Meeting of Shareholders was held on August 16, 2007 for shareholders of record on June 20, 2007, to elect director or trustee nominees of each Trust. This proposal was part of the reorganization of the Trusts Boards of Trustees (the Boards) to take effect on or about November 1, 2007. The Board is organized into three classes one class of which is elected annually. Each Trustee serves a three-year term concurrent with the class into which he or she is elected.

Approved the Class I Directors/Trustees as follows:

Votes For	Votes Withheld	Votes For	Votes Withheld	Votes For	Votes Withheld
Investment Quality Municipal	14,330,954	110,121	14,335,004	106,071	14,330,737	110,338
Municipal Income	41,486,450	431,045	41,488,590	428,905	41,477,739	439,756
Long-Term Municipal	11,772,697	618,809	11,773,022	618,484	11,772,697	618,809
California Investment Quality	910,803	20,371	910,803	20,371	911,229	19,945
California Income	13,251,599	106,933	13,249,099	109,433	13,251,599	106,933
Florida Investment Quality	977,356	55,236	973,856	58,736	977,356	55,236
Florida Income	6,322,811	7,050	6,320,011	9,850	6,321,411	8,450
New Jersey Investment Quality	924,350	23,781	924,350	23,781	924,350	23,781
New Jersey Income	6,950,946	84,083	6,950,946	84,083	6,950,946	84,083
New York Investment Quality	1,204,527	2,000	1,204,127	2,400	1,204,527	2,000
New York Income	11,531,240	121,172	11,531,425	120,987	11,531,092	121,320

64 ANNUAL REPORT OCTOBER 31, 2007

Additional Information (unaudited) (continued)

Votes For		Votes Withheld		Votes For	Votes Withheld
Investment Quality Municipal	4,843	1	4	1	14,330,854	110,221
Municipal Income	13,553	1	65	1	41,483,220	434,275
Long-Term Municipal	11,773,022		618,484		11,772,697	618,809
California Investment Quality	195	1		1	911,229	19,945
California Income	4,260	1		1	13,244,929	113,603
Florida Investment Quality	322	1	5	1	973,856	58,736
Florida Income	2,301	1		1	6,320,011	9,850
New Jersey Investment Quality	250	1		1	924,350	23,781
New Jersey Income	2,433	1		1	6,950,146	84,883
New York Investment Quality	386	1		1	1,204,527	2,000
New York Income	1,780	1		1	11,531,240	121,172

Approved the Class II Directors/Trustees as follows:

Votes For	Votes Withheld	Votes For		Votes Withheld		Votes For	Votes Withheld
Investment Quality Municipal	14,333,679	107,396	4,843	1	4	1	14,335,004	106,071
Municipal Income	41,497,942	419,553	13,553	1	65	1	41,492,473	425,022
Long-Term Municipal	11,773,022	618,484	11,773,022		618,484		11,773,022	618,484
California Investment Quality	911,229	19,945	195	1		1	910,803	20,371
California Income	13,251,599	106,933	4,260	1		1	13,250,099	108,433
Florida Investment Quality	977,356	55,236	322	1	5	1	977,356	55,236
Florida Income	6,322,811	7,050	2,301	1		1	6,322,807	7,054
New Jersey Investment Quality	924,350	23,781	250	1		1	924,350	23,781
New Jersey Income	6,950,946	84,083	2,433	1		1	6,950,946	84,083
New York Investment Quality	1,203,202	3,325	386	1		1	1,204,527	2,000
New York Income	11,531,425	120,987	1,780	1		1	11,531,425	120,987

1 Voted on by holders of preferred shares only.

Votes For	Votes Withheld
Investment Quality Municipal	14,336,322	104,753
Municipal Income	41,495,725	421,770
Long-Term Municipal	11,774,073	617,433
California Investment Quality	911,229	19,945
California Income	13,251,046	107,486
Florida Investment Quality	977,356	55,236
Florida Income	6,322,811	7,050
New Jersey Investment Quality	924,350	23,781
New Jersey Income	6,950,946	84,083
New York Investment Quality	1,204,527	2,000
New York Income	11,531,425	120,987

Approved the Class III Directors/Trustees as follows:

ANNUAL REPORT OCTOBER 31, 2007 65

Additional Information (unaudited) (concluded)

Votes For	Votes Withheld	Votes For	Votes Withheld	Votes For	Votes Withheld
Investment Quality Municipal	14,329,430	111,645	14,333,423	107,652	14,330,949	110,126
Municipal Income	41,489,958	427,537	41,482,861	434,634	41,487,342	430,153
Long-Term Municipal	11,773,022	618,484	11,773,748	617,758	11,771,722	619,784
California Investment Quality	911,229	19,945	910,829	20,345	911,229	19,945
California Income	13,253,099	105,433	13,251,899	106,633	13,248,599	109,933
Florida Investment Quality	977,356	55,236	977,356	55,236	999,856	32,736
Florida Income	6,321,811	8,050	6,322,807	7,054	6,322,811	7,050
New Jersey Investment Quality	924,350	23,781	924,350	23,781	924,350	23,781
New Jersey Income	6,950,946	84,083	6,950,946	84,083	6,950,946	84,083
New York Investment Quality	1,204,527	2,000	1,204,527	2,000	1,203,202	3,325
New York Income	11,531,425	120,987	11,531,425	120,987	11,531,425	120,987

Votes For	Votes Withheld
Investment Quality Municipal	14,335,310	105,765
Municipal Income	41,489,636	427,859
Long-Term Municipal	11,773,022	618,484
California Investment Quality	911,229	19,945
California Income	13,250,099	108,433
Florida Investment Quality	977,356	55,236
Florida Income	6,322,811	7,050
New Jersey Investment Quality	924,350	23,781
New Jersey Income	6,950,946	84,083
New York Investment Quality	1,204,127	2,400
New York Income	11,530,907	121,505

The Trusts had an additional proposal (Proposal #2) to amend their respective Declarations of Trust to increase the maximum number of Board Members to 15:

Municipal Income	40,842,878	715,927	358,689
Long-Term Municipal	12,114,243	150,528	126,736
California Income	13,164,978	140,472	53,082
Florida Investment Quality	973,367	55,225	4,000
Florida Income	6,273,141	40,773	15,947
New Jersey Income	6,832,125	72,775	130,130
New York Income	11,447,012	123,050	82,350

Each Trust listed for trading on the New York Stock Exchange (NYSE) has filed with the NYSE its annual chief executive officer certification regarding compliance with the NYSEs listing standards and each Trust listed for trading on the American Stock Exchange (AMEX) has filed with the AMEX its corporate governance certification regarding compliance with the AMEXs listing standards. All of the Trusts have filed with the Securities and Exchange Commission the certification of its chief executive officer and chief financial officer required by section 302 of the Sarbanes-Oxley Act.

The Trusts do not make available copies of their respective Statements of Additional Information because the Trusts shares are not continuously offered, which means that the Statement of Additional Information of each Trust has not been updated after completion of such Trusts offering and the information contained in each Trusts Statement of Additional Information may have become outdated.

During the period, there were no material changes in any Trusts investment objective or policies or to any Trusts charters or by-laws that were not approved by the shareholders or in the principle risk factors associated with investment in the Trusts.

Quarterly performance, semi-annual and annual reports and other information regarding the Trusts may be found on BlackRocks website, which can be accessed at http://www1.blackrock.com. This reference to BlackRocks website is intended to allow investors public access to information regarding the Trusts and does not, and is not intended, to incorporate BlackRocks website into this report.

66 ANNUAL REPORT OCTOBER 31, 2007

Section 19 Notices (unaudited)

These amounts are sources of distributions reported are only estimates and are not being provided for tax reporting purposes. The actual amounts and source for tax reporting purposes will depend upon the Trusts investment experience during the remainder of its fiscal year end and may be subject to changes based on the tax regulations. The Trust will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.

Trust	Total Fiscal Year to Date Cumulative Distributions by Character — Net Investment Income	Net Realized Capital Gains	Return of Capital	Total Per Common Share	Percentage of Fiscal Year to Date Cumulative Distributions by Character — Net Investment Income	Net Realized Capital Gains	Return of Capital	Total Per Common Share
Long-Term Municipal	$ 0.65	$	$ 0.07	$ 0.72	90 %	%	10 %	100 %

ANNUAL REPORT OCTOBER 31, 2007 67

Trustees Information as of October 31, 2007 (unaudited)

| Name, Address
and Year of Birth | Current
Positions Held With the Trusts | Term of Office and Length of Time Served | Principal
Occupations During the Past Five Years | Number of Portfolios Overseen Within the Fund Complex 1 | Other
Directorships Held Outside the Fund Complex 1 | Events or
Transactions by Reason of Which the Trustee is an Interested Person as Defined in Section 2(a) (19) of the 1940 Act |
| --- | --- | --- | --- | --- | --- | --- |
| Interested
Trustee 2 | | | | | | |
| Ralph L. Schlosstein BlackRock, Inc. 40 East 52nd Street New York, NY 10022 1951 | Chairman of the Board 3 | 3 years 4 /since inception | Director from 1999 to 2007 and President of BlackRock,
Inc. from 1998 to 2007. Chairman and President of the BlackRock Liquidity
Funds. | 70 | None | Former Director and President of the Advisor until
September 2007. |

| 1 | The Fund Complex means two or more registered investment
companies that: (1) hold themselves out to investors as related companies for
purposes of investment and investor services; or (2) have a common investment
advisor or have an investment advisor that is an affiliated person of the
investment advisor of any of the other registered investment companies. |
| --- | --- |
| 2 | Interested Director/Trustee as defined by Section 2(a)(19)
of the Investment Company Act of 1940. |
| 3 | Director/Trustee since inception; appointed Chairman of
the Board on August 22, 2002. |
| 4 | The Board is classified into three classes of which one
class is elected annually. Each Director/Trustee serves a three-year term
concurrent with the class from which they are elected. |

68 ANNUAL REPORT OCTOBER 31, 2007

Trustees Information (unaudited) (continued)

Name, Address and Year of Birth	Current Positions Held With the Trusts	Term of Office and Length of Time Served	Principal Occupations During the Past Five Years	Number of Portfolios Overseen Within the Fund Complex 1	Other Directorships Held Outside the Fund Complex
Independent Trustees
Richard E. Cavanagh P.O. Box 4546 New York, NY 10163-4546 1946	Lead Trustee Audit Committee Member 2	3 years 3 /since inception	Trustee, Aircraft Finance Trust (AFT) from 1999 to the
present; Director, The Guardian Life Insurance Company of America and The
Mutual Life Insurance Company from 1998 to the present; Trustee,
Educational Testing Service (ETS) from 1997 until the present; Director, the
Freemont Group from 1996 until the present. President and Chief Executive Officer
of The Conference Board, Inc. (a leading global business research
organization) from 1995 to 2007.	60	Arch Chemical (Chemicals and Allied Products).
Kent Dixon P.O. Box 4546 New York, NY 10163-4546 1937	Trustee Audit Committee Member 2	3 years 3 /since inception	Consultant/Investor since 1988.	60	None
Frank J. Fabozzi P.O. Box 4546 New York, NY 10163-4546 1948	Trustee Audit Committee Member 2	3 years 3 /since inception	Consultant/Editor of, The Journal of Portfolio
Management; Yale University, School of Management, Professor in the Practice
of Finance and Becton Fellow from 2006 until present; Adjunct Professor of
Finance and Becton Fellow from 2005 to 2006; Professor in the practice of
Finance from 2003 to 2005; Adjunct Professor of Finance from 1994 to 2003;
Author and Editor.	60	None
Kathleen F. Feldstein P.O. Box 4546 New York, NY 10163-4546 1941	Trustee	3 years 3 /since January 19, 2005	President of Economic Studies, Inc., (a Belmont MA-based
private economic consulting firm) since 1987; Chair, Board of Trustees,
McLean Hospital since 2000. Member of the Board of Partners Community
Healthcare, Inc. from 2005 until the present; Member of the Board of Partners
HealthCare and Sherrill House from 1990 to the present; Trustee, Museum of
Fine Arts, Boston from 1992 until the present and a Member of the Visiting
Committee to the Harvard University Art Museum from 2003 to the present;
Trustee, The Committee for Economic Development (a research organization of
business leaders and educators) from 1990 to the present; Member of the
Advisory Board to the International School of Business, Brandeis University
from 2002 to the present.	60	Director, The McClatchy Company.

| 1 | The Fund Complex means two or more registered investments
companies that: (1) hold themselves out to investors as related companies for
purposes of investment and investor services; or (2) have a common investment
advisor or have an investment advisor that is an affiliated person of the
investment advisor of any of the other registered investment companies. |
| --- | --- |
| 2 | The Board of each Trust has determined that each Trust has
three Audit Committee financial experts serving on its Audit Committee, Mr.
Cavanagh, Mr. Dixon and Mr. Fabozzi, each of whom is independent for the
purpose of the definition of Audit Committee financial expert as applicable
to the Trusts. |
| 3 | The Board is classified into three classes of which one
class is elected annually. Each Director/Trustee serves a three-year term
concurrent with the class from which they are elected. |

ANNUAL REPORT OCTOBER 31, 2007 69

Trustees Information (unaudited) (concluded)

Name, Address and Year of Birth	Current Positions Held With the Trusts	Term of Office and Length of Time Served	Principal Occupations During the Past Five Years
Independent Trustees
R. Glenn Hubbard P.O. Box 4546 New York, NY 10163-4546 1958	Trustee	3 years 3 /since November 16, 2004	Dean of Columbia Business School since 2004; Columbia
faculty member since 1988; Co-director of Columbia Business Schools
Entrepreneurship Program 1997 to 2004; Visiting Professor at the John F.
Kennedy School of Government at Harvard University and the Harvard Business
School from 1985, as well as the University of Chicago from 1994; Deputy
Assistant Secretary of the U.S. Treasury Department for Tax Policy from 1991
to 1993; Chairman of the U.S. Council of Economic Advisers under the
President of the United States from 2001 to 2003.	60	ADP, KKR Financial Corporation, Duke Realty, Metropolitan
Life Insurance Company.

| 1 | The Fund Complex means two or more registered investments
companies that: (1) hold themselves out to investors as related companies for
purposes of investment and investor services; or (2) have a common investment
advisor or have an investment advisor that is an affiliated person of the
investment advisor of any of the other registered investment companies. |
| --- | --- |
| 2 | The Board of each Trust has determined that each Trust has
three Audit Committee financial experts serving on its Audit Committee, Mr.
Cavanagh, Mr. Dixon and Mr. Fabozzi, each of whom is independent for the purpose
of the definition of Audit Committee financial expert as applicable to the
Trusts. |
| 3 | The Board is classified into three classes of which one
class is elected annually. Each Director/Trustee serves a three-year term
concurrent with the class from which they are elected. |

70 ANNUAL REPORT OCTOBER 31, 2007

[This Page Intentionally Left Blank]

BlackRock Closed-End Funds

Officers
Robert S. Kapito, President
Donald C. Burke, Treasurer
Bartholomew Battista, Chief
Compliance Officer
Anne Ackerley, Vice
President
Vincent B. Tritto, Secretary
Investment Advisor
BlackRock Advisors, LLC
100 Bellevue Parkway
Wilmington, DE 19809
(800) 227-7BFM
Sub-Advisor
BlackRock Financial Management, Inc.
40 East 52nd Street
New York, NY 10022
Accounting Agent
and Custodian
State Street Bank and Trust Company
2 Avenue De Lafayette
Boston, MA 02111
Transfer Agent
Computershare Trust Company, N.A.
250 Royall Street
Canton, MA 02021
(800) 699-1BFM
Auction Agent 1
Bank of New York
101 Barclay Street, 7 West
New York, NY 10286
Auction Agent 2
Deutsche Bank Trust Company Americas
60 Wall Street, 8th Floor
New York, NY 10286
Independent
Registered Public Accounting Firm
Deloitte & Touche LLP
200 Berkeley Street
Boston, MA 02116
Legal Counsel
Skadden, Arps, Slate, Meagher & Flom LLP
Four Times Square
New York, NY 10036
Legal Counsel
Independent Trustees
Debevoise & Plimpton LLP
919 Third Avenue
New York, NY 10022

This report is for shareholder information. This is not a prospectus intended for use in the purchase or sale of Trust shares. Statements and other information contained in this report are as dated and are subject to change.

BlackRock Closed-End Funds c/o BlackRock Advisors, LLC 100 Bellevue Parkway Wilmington, DE 19809 (800) 227-7BFM

| 1 For the
Income Trusts. |
| --- |
| 2 For the
Investment Quality Trusts. |

The Trusts will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called householding and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact the Trusts at (800) 699-1BFM.

The Trusts have delegated to the Advisor the voting of proxies relating to their voting securities pursuant to the Advisors proxy voting policies and procedures. You may obtain a copy of these proxy voting policies and procedures, without charge, by calling (800) 699-1BFM. These policies and procedures are also available on the website of the Securities and Exchange Commission (the Commission) at http://www.sec.gov.

Information on how proxies relating to the Trusts voting securities were voted (if any) by the Advisor during the most recent 12-month period ended June 30th is available without charge, upon request, by calling (800) 699-1BFM or on the website of the Commission at http://www.sec.gov.

The Trusts file their complete schedule of portfolio holdings for the first and third quarters of their respective fiscal years with the Commission on Form N-Q. Each Trusts Form N-Q is available on the Commissions website at http://www.sec.gov. Each Trusts Form N-Q, may be reviewed and copied at the Commissions Public Reference Room in Washington, D.C. Information regarding the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. Each Trusts Form N-Q may also be obtained, without charge, upon request, by calling (800) 699-1BFM.

ANNUAL REPORT OCTOBER 31, 2007

| This report is for shareholder
information. This is not a prospectus intended for use in the purchase or
sale of Trust shares. Statements and other information contained in this
report are as dated and are subject to change. | |
| --- | --- |
| CEF-ANN-2-1007 | ● |

| Item 2 | Code of Ethics The registrant
(or the Fund) has adopted a code of ethics, as of the end
of the period covered by this report, applicable to the registrant's
principal executive officer, principal financial officer and principal
accounting officer, or persons performing similar functions. During the
period covered by this report, there have been no amendments to or waivers
granted under the code of ethics. A copy of the code of ethics is available
without charge at www.blackrock.com. |
| --- | --- |
| Item 3 | Audit
Committee Financial Expert The registrant's board of directors
or trustees, as applicable (the board of directors) has
determined that (i) the registrant has the following audit committee
financial experts serving on its audit committee and (ii) each audit
committee financial expert is independent: Kent Dixon Frank J. Fabozzi Dr. Andrew F. Brimmer (retired as of December 31, 2006) Robert S. Salomon,
Jr. (term began effective November 1, 2007) W. Carl Kester (term began
effective November 1, 2007) James T. Flynn (term began effective November
1, 2007) Karen P. Robards (term began effective November 1, 2007) The registrant's board of directors
has determined that W. Carl Kester and Karen P. Robards qualify as
financial experts pursuant to Item 3(c)(4) of Form N-CSR. Prof. Kester has a thorough
understanding of generally accepted accounting principles, financial
statements and internal control over financial reporting as well as
audit committee functions. Prof. Kester has been involved in providing
valuation and other financial consulting services to corporate clients
since 1978. Prof. Kesters financial consulting services present
a breadth and level of complexity of accounting issues that are generally
comparable to the breadth and complexity of issues that can reasonably
be expected to be raised by the registrants financial statements. Ms. Robards has a thorough understanding
of generally accepted accounting principles, financial statements and
internal control over financial reporting as well as audit committee
functions. Ms. Robards has been President of Robards & Company,
a financial advisory firm, since 1987. Ms. Robards was formerly an
investment banker for more than 10 years where she was responsible
for evaluating and assessing the performance of companies based on
their financial results. Ms. Robards has over 30 years of experience
analyzing financial statements. She also is the member of the Audit
Committees of one publicly held company and a non-profit organization. Under applicable securities
laws, a person determined to be an audit committee financial expert
will not be deemed an expert for any purpose, including
without limitation for the purposes of Section 11 of the Securities
Act of 1933, as a result of being designated or identified as an audit
committee financial expert. The designation or identification as an
audit committee financial expert does not impose on such person any
duties, obligations, or liabilities greater than the duties, obligations,
and liabilities imposed on such person as a member of the audit committee
and board of directors in the absence of such designation or identification. |

Item 4 Principal Accountant Fees and Services

	(a) Audit Fees — Current	Previous	(b) Audit-Related Fees 1 — Current	Previous	(c) Tax Fees 2 — Current	Previous	(d) All Other Fees 3 — Current	Previous
	Fiscal Year	Fiscal Year	Fiscal Year	Fiscal Year	Fiscal Year	Fiscal Year	Fiscal Year	Fiscal Year
Entity Name	End	End	End	End	End	End	End	End
BlackRock Investment Quality Municipal Trust, Inc.	$26,500	$26,500	$1,975	$2,000	$6,100	$8,000	$1,042	$1,800

1 The nature of the services include assurance and related services reasonably related to the performance of the audit of financial statements not included in Audit Fees.

2 The nature of the services include tax compliance, tax advice and tax planning.

3 The nature of the services include a review of compliance procedures and attestation thereto.

(e)(1) Audit Committee Pre-Approval Policies and Procedures: The registrant has polices and procedures (the "Policy") for the pre-approval by the registrant's audit committee of Audit, Audit-Related, Tax and Other Services (as each is defined in the Policy) provided by the Fund's independent auditor (the "Independent Auditor") to the registrant and other "Covered Entities" (as defined below). The term of any such pre-approval is 12 months from the date of pre-approval, unless the audit committee specifically provides for a different period. The amount of any such pre-approval is set forth in the appendices to the Policy (the "Service Pre-Approval Documents"). At its first meeting of each calendar year, the audit committee will review and re-approve the Policy and approve or re-approve the Service Pre-Approval Documents for that year, together with any changes deemed necessary or desirable by the audit committee. The audit committee may, from time to time, modify the nature of the services pre-approved, the aggregate level of fees pre-approved or both. For the purposes of the Policy, "Covered Services" means (A) all engagements for audit and non-audit services to be provided by the Independent Auditor to the Fund and (B) all engagements for non-audit services related directly to the operations and financial reporting or the Fund to be provided by the Independent Auditor to any Covered Entity, "Covered Entities" means (1) the Advisor or (2) any entity controlling, controlled by or under common control with the Advisor that provides ongoing services to the Fund. In the intervals between the scheduled meetings of the audit committee, the audit committee delegates pre-approval authority under this Policy to the Chairman of the audit committee (the "Chairman"). The Chairman shall report any pre-approval decisions under this Policy to the audit committee at its next scheduled meeting. At each scheduled meeting, the audit committee will review with the Independent Auditor the Covered Services pre-approved by the Chairman pursuant to delegated authority, if any, and the fees related thereto. Based on these reviews, the audit committee can modify, at its discretion, the pre-approval originally granted by the Chairman pursuant to delegated authority. This modification can be to the nature of services pre-approved, the aggregate level of fees approved, or both. Pre-approval of Covered Services by the Chairman pursuant to delegated authority is expected to be the exception rather than the rule and the audit committee may modify or withdraw this delegated authority at any time the audit committee determines that it is appropriate to do so. Fee levels for all Covered Services to be provided by the Independent Auditor and pre-approved under this Policy will be established annually by the audit committee and set forth in the Service Pre-Approval Documents. Any increase in pre-approved fee levels will require specific pre-approval by the audit committee (or the Chairman pursuant to delegated authority).

The terms and fees of the annual Audit services engagement for the Fund are subject to the specific pre-approval of the audit committee. The audit committee (or the Chairman pursuant to delegated authority) will approve, if necessary, any changes in terms, conditions or fees resulting from changes in audit scope, Fund structure or other matters. In addition to the annual Audit services engagement specifically approved by the audit committee, any other Audit services for the Fund not listed in the Service Pre-Approval Document for the respective period must be specifically pre-approved by the audit committee (or the Chairman pursuant to delegated authority). Audit-Related services are assurance and related services that are not required for the audit, but are reasonably related to the performance of the audit or review of the financial statements of the registrant and, to the extent they are Covered Services, the other Covered Entities (as defined in the Joint Audit Committee Charter) or that are traditionally performed by the Independent Auditor. Audit-Related services that are Covered Services and are not listed in the Service Pre-Approval Document for the respective period must be specifically pre-approved by the audit committee (or the Chairman pursuant to delegated authority). The audit committee believes that the Independent Auditor can provide Tax services to the Covered Entities such as tax compliance, tax planning and tax advice without impairing the auditors independence. However, the audit committee will not permit the retention of the Independent Auditor in connection with a transaction initially recommended by the Independent Auditor, the sole business purpose of which may be tax avoidance and the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. Tax services that are Covered Services and are not listed in the Service Pre-Approval Document for the respective period must be specifically pre-approved by the audit committee (or the Chairman pursuant to delegated authority). All Other services that are covered and are not listed in the Service Pre-Approval Document for the respective period must be specifically pre-approved by the audit committee (or the Chairman pursuant to delegated authority). Requests or applications to provide Covered Services that require approval by the audit committee (or the Chairman pursuant to delegated authority) must be submitted to the audit committee or the Chairman, as the case may be, by both the Independent Auditor and the Chief Financial Officer of the respective Covered Entity, and must include a joint statement as to whether, in their view, (a) the request or application is consistent with the rules of the Securities and Exchange Commission ("SEC") on auditor independence and (b) the requested service is or is not a non-audit service prohibited by the SEC. A request or application submitted to the Chairman between scheduled meetings of the audit committee should include a discussion as to why approval is being sought prior to the next regularly scheduled meeting of the audit committee. (e)(2) None of the services described in each of Items 4(b) through (d) were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. (f) Not Applicable (g) Affiliates Aggregate Non-Audit Fees:

	Current Fiscal Year	Previous Fiscal Year
Entity Name	End	End
BlackRock Investment Quality Municipal
Trust, Inc.	$293,617	$298,000

| | (h)
The registrants audit committee has considered and determined
that the provision of non-audit services that were rendered to the
registrants investment adviser (not including any non-affiliated
sub-adviser whose role is primarily portfolio management and is subcontracted
with or overseen by the registrants investment adviser), and
any entity controlling, controlled by, or under common control with
the investment adviser that provides ongoing services to the registrant
that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule
2-01 of Regulation S-X is compatible with maintaining the principal
accountants independence. Regulation S-X Rule 2-01(c)(7)(ii) $284,500,
0% |
| --- | --- |
| Item 5 | Audit
Committee of Listed Registrants The following individuals are
members of the registrants separately-designated standing audit
committee established in accordance with Section 3(a)(58)(A) of the
Exchange Act (15 U.S.C. 78c(a)(58)(A)): Dr. Andrew F. Brimmer (retired
as of December 31, 2006) Richard E. Cavanagh (not reappointed
to Audit Committee as of November 1, 2007) Kent Dixon Frank J. Fabozzi Robert S. Salomon, Jr. (term began effective November 1, 2007) W. Carl
Kester (term began effective November 1, 2007) James T. Flynn (term
began effective November 1, 2007) Karen P. Robards (term began effective
November 1, 2007) |
| Item 6 | Schedule of Investments The
registrants Schedule of Investments is included as part of the
Report to Stockholders filed under Item 1 of this form. |
| Item 7 | Disclosure
of Proxy Voting Policies and Procedures for Closed-End Management Investment
Companies The registrant has delegated the voting of proxies
relating to Fund portfolio securities to its investment adviser, BlackRock
Advisors, LLC and its sub-adviser, as applicable. The Proxy Voting
Policies and Procedures of the adviser and sub-adviser are attached
hereto as Exhibit 99.PROXYPOL. Information about how the Fund
voted proxies relating to securities held in the Funds portfolio
during the most recent 12 month period ended June 30 is available without
charge (1) at www.blackrock.com and (2) on the Commissions web
site at http://www.sec.gov . |
| Item 8 | Portfolio
Managers of Closed-End Management Investment Companies as of
October 31, 2007. (a)(1) BlackRock Investment
Quality Municipal Trust, Inc. is managed by a team of investment professionals
comprised of Theodore R. Jaeckel, Jr., CFA, Managing Director at BlackRock,
and Walter OConnor, Managing Director at BlackRock. Each is a
member of BlackRocks municipal tax-exempt management group. Mr.
Jaeckel and Mr. OConnor are responsible for setting the Funds
overall investment strategy and overseeing the management of the Fund.
Mr. Jaeckel is also the Funds lead portfolio manager and is responsible
for the day-to-day management of the Funds portfolio and the
selection of its investments. Messrs. Jaeckel and OConnor have
been members of the Funds management team since 2006. |

Mr. Jaeckel joined BlackRock in 2006. Prior to joining BlackRock, he was a Managing Director (Municipal Tax-Exempt Fund Management) of Merrill Lynch Investment Managers, L.P. (MLIM) from 2005 to 2006 and a Director of MLIM from 1997 to 2005. He has been a portfolio manager with BlackRock or MLIM since 1991. Mr. OConnor joined BlackRock in 2006. Prior to joining BlackRock, he was a Managing Director (Municipal Tax-Exempt Fund Management) of MLIM from 2003 to 2006 and was a Director of MLIM from 1997 to 2002. He has been a portfolio manager with BlackRock or MLIM since 1991. (a)(2) As of October 31, 2007:

				(iii) Number of Other Accounts and
	(ii) Number of Other Accounts Managed			Assets for Which Advisory Fee is
	and Assets by Account Type			Performance-Based
	Other			Other
(i) Name of	Registered	Other Pooled		Registered	Other Pooled
Portfolio	Investment	Investment	Other	Investment	Investment	Other
Manager	Companies	Vehicles	Accounts	Companies	Vehicles	Accounts
Walter
OConnor	80	0	0	0	0	0
	$28,536,141,929	$0	$0	$0	$0	$0
Theodore R.
Jaeckel, Jr.	80	1	0	0	1	0
	$28,536,141,929	$26,763,472	$0	$0	$26,763,472	$0

| (iv) Potential Material
Conflicts of Interest |
| --- |
| BlackRock, Inc. and its affiliates
(collectively, herein BlackRock) has built a professional
working environment, firm-wide compliance culture and compliance procedures
and systems designed to protect against potential incentives that may
favor one account over another. BlackRock has adopted policies and procedures
that address the allocation of investment opportunities, execution of
portfolio transactions, personal trading by employees and other potential
conflicts of interest that are designed to ensure that all client accounts
are treated equitably over time. Nevertheless, BlackRock furnishes investment
management and advisory services to numerous clients in addition to the
Fund, and BlackRock may, consistent with applicable law, make investment
recommendations to other clients or accounts (including accounts which
are hedge funds or have performance or higher fees paid to BlackRock,
or in which portfolio managers have a personal interest in the receipt
of such fees), which may be the same as or different from those made
to the Fund. In addition, BlackRock, its affiliates and any officer,
director, stockholder or employee may or may not have an interest in
the securities whose purchase and sale BlackRock recommends to the Fund.
BlackRock, or any of its affiliates, or any officer, director, stockholder,
employee or any member of their families may take different actions than
those recommended to the Fund by BlackRock with respect to the same securities.
Moreover, BlackRock may refrain from rendering any advice or services
concerning securities of companies of which any of BlackRocks (or
its affiliates) officers, directors or employees are directors
or officers, or companies as to which BlackRock or any of its affiliates
or the officers, directors and employees of any of them has any substantial
economic interest or possesses material non-public information. Each
portfolio manager also may manage accounts whose investment strategies
may at times be opposed to the strategy utilized for the Fund. In this
connection, it should be noted that certain portfolio managers currently
manage certain accounts that |

| |
| --- |
| Portfolio Manager Compensation |
| The
portfolio manager compensation program of BlackRock is critical to
BlackRocks ability to attract and retain the most talented asset
management professionals. This program ensures that compensation is
aligned with maximizing investment returns and it provides a competitive
pay opportunity for competitive performance. Compensation Program The
elements of total compensation for BlackRock portfolio managers are:
fixed base salary, annual performance-based cash and stock compensation
(cash and stock bonus) and other benefits. BlackRock has balanced these
components of pay to provide portfolio managers with a powerful incentive
to achieve consistently superior investment performance. By design,
portfolio manager compensation levels fluctuate both up and
down
with the relative investment performance of the portfolios that they
manage. Base Salary Under
the BlackRock approach, like that of many asset management firms, fixed
base salaries represent a relatively small portion of a portfolio managers
total compensation. This approach serves to enhance the motivational
value of the performance-based (and therefore variable) compensation
elements of the compensation program. Performance-Based Compensation BlackRock
believes that the best interests of investors are served by recruiting
and retaining exceptional asset management talent and managing their
compensation within a consistent and disciplined framework that emphasizes
pay for performance in the context of an intensely competitive market
for talent. To that end, the portfolio manager incentive compensation
is based on a formulaic compensation program. |

BlackRocks formulaic portfolio manager compensation program includes: pre-tax investment performance relative to the appropriate competitors or benchmarks over 1-, 3- and 5-year performance periods and a measure of operational efficiency. If a portfolio managers tenure is less than 5 years, performance periods will reflect time in position. Portfolio managers are compensated based on products they manage. For these purposes, the performance of the Fund is compared to the Lipper Closed-end General Leveraged Municipal Debt Funds classification. A smaller discretionary element of portfolio manager compensation may include consideration of: financial results, expense control, profit margins, strategic planning and implementation, quality of client service, market share, corporate reputation, capital allocation, compliance and risk control, leadership, workforce diversity, supervision, technology and innovation. All factors are considered collectively by BlackRock management. Cash Bonus Performance-based compensation is distributed to portfolio managers in a combination of cash and stock. Typically, the cash bonus, when combined with base salary, represents more than 60% of total compensation for the portfolio managers. Stock Bonus A portion of the dollar value of the total annual performance-based bonus is paid in restricted shares of stock of BlackRock, Inc. (the Company). Paying a portion of annual bonuses in stock puts compensation earned by a portfolio manager for a given year at risk based on the Companys ability to sustain and improve its performance over future periods. The ultimate value of stock bonuses is dependent on future Company stock price performance. As such, the stock bonus aligns each portfolio managers financial interests with those of the Companys shareholders and encourages a balance between short-term goals and long-term strategic objectives. Management strongly believes that providing a significant portion of competitive performance-based compensation in stock is in the best interests of investors and shareholders. This approach ensures that portfolio managers participate as shareholders in both the downside risk and upside opportunity of the Companys performance. Portfolio managers, therefore, have a direct incentive to protect the Companys reputation for integrity. Other Benefits Portfolio managers are also eligible to participate in broad-based plans offered generally to BlackRock employees, including broad-based retirement, 401(k), health, and other employee benefit plans. For example, BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP) and the BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a company match equal to 50% of the first 6% of eligible pay contributed to the plan capped at $4,000 per year, and a company retirement contribution equal to 3% of eligible compensation, plus an additional contribution of 2% for any year in which BlackRock has positive net operating income. The RSP offers a range of investment options, including registered investment companies managed by the firm. Company contributions follow the investment direction set by participants for their own contributions or absent, employee investment direction, are invested into a stable value fund. The ESPP allows for investment in BlackRock common stock at a 5% discount on the fair market value of the stock on the purchase

| | date.
Annual participation in the ESPP is limited to the purchase of 1,000
shares or a dollar value of $25,000. Each portfolio manager is
eligible to participate in these plans. (a)(4) Beneficial
Ownership of Securities. As
of October 31, 2007, neither of Messrs. Jaeckel or OConnor
beneficially owned any stock issued by the Fund. |
| --- | --- |
| Item 9 | Purchases of Equity
Securities by Closed-End Management Investment Company and Affiliated
Purchasers Not Applicable due to no such purchases during the
period covered by this report. |
| Item 10 | Submission of Matters
to a Vote of Security Holders The registrants Nominating
and Governance Committee will consider nominees to the Board recommended
by shareholders when a vacancy becomes available. Shareholders who wish
to recommend a nominee should send nominations which include biographical
information and set forth the qualifications of the proposed nominee
to the registrants Secretary. There have been no material changes
to these procedures. |
| Item 11 | Controls and Procedures |
| 11(a) | The registrants
principal executive and principal financial officers or persons performing
similar functions have concluded that the registrants disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Investment
Company Act of 1940, as amended (the 1940 Act)) are effective
as of a date within 90 days of the filing of this report based on the
evaluation of these controls and procedures required by Rule 30a-3(b)
under the 1940 Act and Rule 13a-15(b) under the Securities and Exchange
Act of 1934, as amended. |
| 11(b) | There were no changes
in the registrants internal control over financial reporting (as
defined in Rule 30a-3(d) under the 1940 Act) that occurred during the
second fiscal quarter of the period covered by this report that have
materially affected, or are reasonably likely to materially affect, the
registrants internal control over financial reporting. |
| Item 12 | Exhibits attached
hereto |
| 12(a)(1) | Code of Ethics See
Item 2 |
| 12(a)(2) | Certifications Attached
hereto |
| 12(a)(3) | Not Applicable |
| 12(b) | Certifications Attached
hereto |

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.

BlackRock Investment Quality Municipal Trust, Inc.

By:
Donald C. Burke,
Chief Executive Officer of
BlackRock Investment Quality Municipal
Trust, Inc.

Date: December 19, 2007

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:
Donald C. Burke,
Chief Executive Officer (principal executive
officer) of
BlackRock Investment Quality Municipal
Trust, Inc.

Date: December 19, 2007

By:
Neal J. Andrews,
Chief Financial Officer (principal financial
officer) of
BlackRock Investment Quality Municipal
Trust, Inc.

Date: December 19, 2007

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