As filed with the Securities and Exchange Commission on June 30, 2006
Investment Company Act File number 811-3955
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
NEW YORK DAILY TAX FREE INCOME FUND, INC.
(Exact name of registrant as specified in charter)
600 FIFTH AVENUE
NEW YORK, NY 10020
(Address of principal executive offices) (Zip code)
ROSANNE HOLTZER
C/O REICH & TANG ASSET MANAGEMENT, LLC
600 FIFTH AVENUE
NEW YORK, NEW YORK 10020
(Name and address of agent for service)
Registrant's telephone number, including area code: 212-830-5200
Date of fiscal year end: April 30
Date of reporting period: April 30, 2006
ITEM 1: REPORT TO STOCKHOLDERS
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NEW YORK 600 FIFTH AVENUE, NEW YORK, NY 10020
DAILY TAX FREE (212) 830-5200
INCOME FUND, INC.
================================================================================
Dear Shareholder:
We are pleased to present the annual report of New York Daily Tax Free Income
Fund, Inc. (the "Fund") for the year ended April 30, 2006.
The Fund had net assets of $424,769,215 and 2,536 active shareholders as of
April 30, 2006.
We thank you for your support and look forward to continuing to serve your cash
management needs.
Sincerely,
/s/ Steven W. Duff
Steven W. Duff
President
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
EXPENSE CHART
FOR THE SIX MONTHS ENDED APRIL 30, 2006
(UNAUDITED)
================================================================================
As a shareholder of the Fund, you incur the following ongoing costs: management
fees and other Fund expenses. You may also incur distribution and/or service
(12b-1) fees. This example is intended to help you understand your ongoing costs
(in dollars) of investing in the Fund and to compare these costs with the
ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period November 1, 2005 through April 30, 2006.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use information in this line, together with
the amount you invested, to estimate the expenses that you paid over the period.
Simply divide your account value by $1,000 (for example, an $8,600 account value
divided by $1,000 = 8.6), then multiply the result by the number in the first
line under the heading entitled "Expenses Paid During the Period" to estimate
the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Fund's actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid for
the period. You may use this information to compare the ongoing costs of
investing in the Fund and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads), redemption fees, or exchange fees that you may incur in other
mutual funds. Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds.
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Beginning Account Value Ending Account Value Expenses Paid During the
Class A & Victory Shares 11/01/05 04/30/06 Period*
- ----------------------------------------------------------------------------------------------------------------------
Actual $1,000.00 $1,011.10 $4.34
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Hypothetical (5% return before $1,000.00 $1,020.48 $4.36
expenses)
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- ----------------------------------------------------------------------------------------------------------------------
Beginning Account Value Ending Account Value Expenses Paid During the
Class B Shares 11/01/05 04/30/06 Period*
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Actual $1,000.00 $1,012.10 $3.34
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Hypothetical (5% return before $1,000.00 $1,021.47 $3.36
expenses)
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- ----------------------------------------------------------------------------------------------------------------------
Beginning Account Value Ending Account Value Expenses Paid During the
Advantage Shares 11/01/05 04/30/06 Period*
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Actual $1,000.00 $1,010.30 $5.08
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Hypothetical (5% return before $1,000.00 $1,019.74 $5.11
expenses)
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<FN>
* Expenses are equal to the Fund's annualized expense ratios of 0.87%, 0.67%,
and 1.02%, for the Class A and Victory shares, Class B shares, and
Advantage shares, respectively, multiplied by the average account value
over the period (November 1, 2005 through April 30, 2006), multiplied by
181/365 (to reflect the most recent fiscal half-year).
</FN>
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS
APRIL 30, 2006
================================================================================
Ratings (a)
-----------------
Face Maturity Current Value Standard
Amount Date Coupon (b) (Note 1) Moody's & Poor's
------ ---- --------- ------ ------- --------
Tax Exempt Commercial Paper (1.18%)
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$ 5,000,000 New York State Dormitory Authority (Columbia University) -
Series C 05/01/06 3.11% $ 5,000,000 A-1+
- ----------- -----------
5,000,000 Total Tax Exempt Commercial Paper 5,000,000
- ----------- -----------
Tax Exempt General Obligation Notes & Bonds (19.50%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 7,670,000 ABN AMRO Munitops Certificates Trust - Series 2002-33
(Port Authority of New York and New Jersey Cosolidated Bonds,
128th Series)
Insured by FSA 07/11/06 3.24% $ 7,670,000 VMIG-1
14,000,000 County of Putnam, NY TAN - Series 2006 (c) 01/19/07 3.25 14,121,915
3,260,604 Eastchester, NY BAN (c) 11/14/06 3.16 3,283,456
1,565,268 Guilderland, NY CSD BAN - Series A (c) 07/06/06 3.75 1,568,021
6,000,000 Irvington, NY Union Free School District TAN (c) 06/23/06 2.70 6,008,906
980,000 Kiryas Joel, NY Union Free School District BAN - Series 2005A (c) 07/11/06 3.40 980,740
4,000,000 New York State Environmental Quality GO - Series 1998G
LOC West LB AG 08/03/06 2.95 4,000,000 VMIG-1 A-1+
3,000,000 New York, Board of Cooperative Educational Services of Broome,
Delaware, Tioga Counties (c) 06/30/06 3.75 3,004,554
4,000,000 New York, Board of Cooperative Educational Services of
Monroe County (c) 06/29/06 3.75 4,005,976
8,000,000 Newburgh City, NY School District BAN (c) 09/28/06 4.00 8,033,501
5,000,000 North Babylon, NY Union Free School District BAN (c) 08/08/06 4.00 5,014,484
3,000,000 North Syracuse CSD GO - Series 2005B (c) 08/24/06 4.13 3,010,322
3,000,000 P - Floater Series MT - 058
(Tobacco Settlement Financing Corporation, NY - Series 2003A-1C)
LOC AMBAC Assurance Corporation 06/22/06 2.85 3,000,000 P-1 A-1
7,000,000 Pittsford, NY CSD BAN - Series 2004 (c) 06/20/06 3.23 7,006,917
1,055,000 Ulster, New York BAN (c) 02/07/07 3.35 1,062,882
9,545,000 Victor, NY CSD BAN (c) 06/30/06 4.00 9,561,923
1,479,675 Victor, NY CSD BAN (c) 10/06/06 4.25 1,487,446
- ----------- -----------
82,555,547 Total Tax Exempt General Obligation Notes & Bonds 82,821,043
- ----------- -----------
Variable Rate Demand Instruments (d) (78.86%)
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$10,000,000 ABN AMRO Munitops Certificate Trust 2005-60
(New York State Thruway Authority - Series G) (c)
Insured by FSA 08/01/13 3.83% $10,000,000
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The accompanying notes are an integral part of these financial statements.
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================================================================================
Ratings (a)
-----------------
Face Maturity Current Value Standard
Amount Date Coupon (b) (Note 1) Moody's & Poor's
------ ---- --------- ------ ------- --------
Variable Rate Demand Instruments (d) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 2,000,000 Dutchess County, NY IDA (Marist College) - Series 2005 A
LOC Bank of New York 07/01/35 3.78% $ 2,000,000 A-1+
1,165,000 Dutchess County, NY IDA Civic Facilities RB
(Trinity - Pawling School Corporation)
LOC Allied Irish Banks, PLC 10/01/32 3.80 1,165,000 VMIG-1
12,155,000 Eagle Tax - Exempt Trust - Series 963206
(New York State Urban Development Corporation) 07/01/16 3.83 12,155,000 A-1+
2,000,000 Eagle Tax - Exempt Trust - Series 20015101
(Puerto Rico Infrastructure Financing Authority
Special Obligation Bonds 2000 - Series A)
Collateralized by SLGS Securities 10/01/34 3.82 2,000,000 A-1+
515,000 Eagle Tax - Exempt Trust - Series 2005102 (Puerto Rico Housing
Finance Corp. RB - Series I)
Insured by AMBAC Assurance Corp. 10/01/11 3.89 515,000 A-1+
8,000,000 Eagle Tax - Exempt Trust - Series 720050077 Class A COPs
(New York City, NY GO Bonds Fiscal 2006 - Series C)
Insured by MBIA Insurance Corp. 08/01/15 3.83 8,000,000 A-1+
2,275,000 Erie County, NY IDA (Hauptman - Woodward Project) - Series 2004
LOC KeyBank, N.A. 03/01/24 3.86 2,275,000 P-1 A-1
2,360,000 Floating Rate Trust Receipts - Series 2003-M8J (New York State
Dormitory Authority,State University Educational Facilities Issue
- Series 2002B)
Insured by FGIC 11/15/29 3.85 2,360,000 VMIG-1
3,000,000 Floating Rate Trust Receipts - Series 2005-K3 (Metropolitan
Transportation Authority, Transportation RB - Series 2005B)
Insured by MBIA Insurance Corp. 11/15/35 3.85 3,000,000 P-1 A-1
11,000,000 Floating Rate Trust Receipts - Series 2005-L21 (New York City, NY
GO Bonds Fiscal 2004 - Series I)
Insured by MBIA Insurance Corp. 08/01/17 3.85 11,000,000 VMIG-1
8,450,000 Floating Rate Trust Receipts - Series 2005-K2 (New York City, NY
Municipal Water Finance Authority Water and Sewer System Bonds,
Fiscal 2005 - Series C) (c)
Insured by MBIA Insurance Corp. 06/15/26 3.85 8,450,000
5,000,000 Floating Rate Trust Receipts - Series 2006-K1 (New York State
Dormitory Authority, Columbia University RB - Series 2006A) 07/01/26 3.85 5,000,000 VMIG-1
15,975,000 Floating Rate Trust Receipts - Series L29
(New York State Dormitory Authority, St. Lukes -
Roosevelt Hospital Center - Series 2005)
Collateralized by FHA 08/15/25 3.85 15,975,000 A-1
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The accompanying notes are an integral part of these financial statements.
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
SCHEDULE OF INVESMENTS (CONTINUED)
APRIL 30, 2006
================================================================================
Ratings (a)
-----------------
Face Maturity Current Value Standard
Amount Date Coupon (b) (Note 1) Moody's & Poor's
------ ---- --------- ------ ------- --------
Variable Rate Demand Instruments (d) (Continued)
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$ 1,100,000 Forest City New Rochelle, NY
(Revenue Certificates of Trust) - Series 2003
LOC Wachovia Bank, N.A. 06/01/11 3.85% $ 1,100,000 VMIG-1 A-1+
600,000 Long Island Power Authority, NY RB (Electric System)
LOC Bayerische Landesbank / Landesbank Baden - Wurttemberg 05/01/33 3.79 600,000 VMIG-1 A-1+
985,000 Merlots - Series 2001-A30 (New York State Dormitory
Authority RB - Series 1996 E)
Insured by AMBAC Assurance Corp. 02/15/18 3.81 985,000 VMIG-1
6,000,000 Metropolitan Transportation Authority RB - Series 2005 E-1
LOC Fortis Bank S.A./N.V. 11/01/35 3.80 6,000,000 VMIG-1 A-1+
2,500,000 Monroe County, NY IDA (Rochester Institute of Technology Project)
- Series 1999 A
LOC Wachovia Bank, N.A. 06/01/29 3.75 2,500,000 VMIG-1
2,495,000 Morgan Stanley Floating Rate Trust Certificates - Series 2004 - 950
(New York City, NY Trust for Cultural Resources RB - Series 2004)
Insured by FGIC 02/01/34 3.82 2,495,000 VMIG-1
2,400,000 New York City Housing Development Corporation Multifamily
(Manhattan Court Development) - Series 2004A
LOC Citibank, N.A. 06/01/36 3.81 2,400,000 A-1+
4,000,000 New York City, NY GO - Fiscal 1996, Series J-2
LOC West LB AG 02/15/16 3.79 4,000,000 P-1 A-1+
3,000,000 New York City, NY GO Fiscal 1993 - Series A-6
LOC Landesbank Hessen -Thuringen Girozentrale 08/01/19 3.77 3,000,000 VMIG-1 A-1+
2,500,000 New York City, NY GO - Fiscal 2004 - Series A-3
LOC BNP Paribas 08/01/31 3.77 2,500,000 VMIG-1 A-1+
4,500,000 New York City, NY GO - Series 1994 H-4
Insured by AMBAC Assurance Corporation 08/01/15 3.80 4,500,000 VMIG-1 A-1
3,400,000 New York City, NY GO - Series 1995 B-9
LOC JPMorgan Chase Bank, N.A. 08/15/23 3.79 3,400,000 VMIG-1 A-1+
2,350,000 New York City, NY GO - Series 1995 F-3
LOC JPMorgan Chase Bank, N.A. 02/15/13 3.75 2,350,000 VMIG-1 A-1+
3,200,000 New York City, NY - Series 2004, Subseries H-8
LOC West LB AG 03/01/34 3.74 3,200,000 VMIG-1 A-1
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The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
================================================================================
Ratings (a)
-----------------
Face Maturity Current Value Standard
Amount Date Coupon (b) (Note 1) Moody's & Poor's
------ ---- --------- ------ ------- --------
Variable Rate Demand Instruments (d) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 1,300,000 New York City, NY HDC
(Columbus Apartment Project) - Series 1995A
Collateralized by Federal National Mortgage Association 03/15/25 3.77% $ 1,300,000 A-1+
7,500,000 New York City, NY HDC (West End Towers) - Series 2004 A
Guaranteed by Federal National Mortgage Association 05/15/34 3.83 7,500,000 P-1 A-1+
5,700,000 New York City, NY Housing Development Corporation MHRB
(941 Hoe Avenue Apartment) - Series 2004 A
LOC KeyBank, N.A, 06/15/37 3.81 5,700,000 A-1
4,725,000 New York City, NY IDA Civic Facilities RB
(American Society Technion Project) - Series 2003
LOC Allied Irish Banks, PLC 10/01/33 3.74 4,725,000 VMIG-1
3,865,000 New York City, NY IDA Civic Facilities RB
(Convent Sacred Heart School) - Series 2002
LOC Allied Irish Banks, PLC 11/01/32 3.84 3,865,000 VMIG-1
1,555,000 New York City, NY IDA Civic Facilities RB
(Epiphany Community Nursery School Project) - Series 1997
LOC Bank of New York 05/01/11 3.85 1,555,000 VMIG-1
1,120,000 New York City, NY IDA Civic Facilities RB
(MSMC Realty Corporation Project) - Series 2001
LOC JPMorgan Chase Bank, N.A. 01/01/31 3.75 1,120,000 VMIG-1 A-1+
17,300,000 New York City, NY IDA Special Facility RB - Series 1997 B
(Korean Airlines Company Limited Project)
LOC HSBC Bank USA, N.A. 11/01/24 3.82 17,300,000 VMIG-1 A-1+
1,473,300 New York City, NY IDA IDRB (Abigal Press) - Series 2002
LOC JPMorgan Chase Bank, N.A. 12/01/18 3.90 1,473,300 A-1+
2,700,000 New York City, NY MHRB
(Peter Cintron Apartments) - Series 2004 A
LOC KeyBank, N.A. 06/15/37 3.81 2,700,000 A-1
5,600,000 New York City, NY Trust for Cultural Resources
(The Museum of Broadcasting) - Series 1989
LOC KBC Bank, N.V. 05/01/14 3.74 5,600,000 VMIG-1 A-1
1,525,000 New York Local Government Assistance Corporation
- Series 2003 A-8V
Insured by FSA 04/01/19 3.73 1,525,000 A-1+
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The accompanying notes are an integral part of these financial statements.
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NEW YORK DAILY TAX FREE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006
================================================================================
Ratings (a)
-----------------
Face Maturity Current Value Standard
Amount Date Coupon (b) (Note 1) Moody's & Poor's
------ ---- --------- ------ ------- --------
Variable Rate Demand Instruments (d) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 1,500,000 New York State Energy Research and Development Authority
(Con Edison Company) - Series 2004 C-3
LOC Citibank, N.A. 11/01/39 3.83% $ 1,500,000 VMIG-1 A-1+
1,000,000 New York State Energy Research & Development Authority
Electric Facilities RB
(Long Island Lighting Company Project) - Series 1997 A
LOC Royal Bank of Scotland PLC 12/01/27 3.83 1,000,000 VMIG-1
2,700,000 New York State Energy Research and Development Authority
(Con Edison Company) - Subseries 2005 A-2
LOC Wachovia Bank, N.A. 05/01/39 3.79 2,700,000 VMIG-1 A-1+
5,000,000 New York State Housing Finance Agency RB
(350 West 43rd Street Project) - Series 2004 A
LOC Landesbank Hessen -Thuringen Girozentrale 11/01/34 3.82 5,000,000 VMIG-1
8,000,000 New York State Housing Finance Agency RB
(100 Maiden Lane) - Series 2004 A
LOC Bank of New York 11/01/37 3.87 8,000,000 VMIG-1
3,300,000 New York State, Housing Finance Agency RB
(1115 First Ave.) - Series 2005 A
LOC KeyBank, N.A. 11/01/34 3.92 3,300,000 VMIG-1
11,300,000 New York State Housing Finance Agency RB
(250 West 50th Street) - Series 1997 A
Guaranteed by Federal National Mortgage Association 05/01/29 3.82 11,300,000 VMIG-1
1,750,000 New York State Housing Finance Agency RB
(Archstone Westbury) - Series 2004 A
LOC JPMorgan Chase Bank, N.A. 11/01/36 3.83 1,750,000 VMIG-1
1,675,000 New York State Housing Finance Agency RB
(Avalon Chrystie Place I Project) - Series 2004 A
LOC Bank of America, N.A. 11/01/36 3.80 1,675,000 VMIG-1
4,000,000 New York State Housing Finance Agency
(Helena Housing) - Series 2004 A
LOC Bank of America, N.A. 11/01/36 3.82 4,000,000 VMIG-1
11,000,000 New York State Housing Finance Agency
(Normandie Court II Project) - Series 1999 A
Guaranteed by Federal Home Loan Mortgage Corporation 11/01/29 3.82 11,000,000 VMIG-1
4,000,000 New York State Housing Finance Agency RB
(Union Square Housing) - Series 1996 A
Guaranteed by Federal National Mortgage Association 05/15/24 3.82 4,000,000 VMIG-1
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The accompanying notes are an integral part of these financial statements.
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================================================================================
Ratings (a)
-----------------
Face Maturity Current Value Standard
Amount Date Coupon (b) (Note 1) Moody's & Poor's
------ ---- --------- ------ ------- --------
Variable Rate Demand Instruments (d) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 5,000,000 New York State Housing Finance Agency State Personal Income
Tax RB (Economic Development & Housing) - Series 2005 C
Insured by FGIC 03/15/33 3.79% $ 5,000,000 A-1+
900,000 New York State Local Government Assistance Corporation
- Series 1995 B
LOC Bank of Nova Scotia 04/01/25 3.70 900,000 VMIG-1 A-1+
11,440,000 New York State MHRB (Normandie Court I Project) - Series 1991-A
LOC Landesbank Hessen - ThuringenGirozentrale 05/15/15 3.75 11,440,000 VMIG-1 A-1+
5,000,000 New York Triborough Bridge & Tunnel Authority BAN - Series 2001 C
Insured by AMBAC Assurance Corporation 01/01/32 3.76 5,000,000 VMIG-1 A-1+
8,400,000 New York, NY - Fiscal 2004 - Series H-6
LOC Bank of America, N.A. 03/01/34 3.77 8,400,000 VMIG-1 A-1+
10,000,000 New York, NY GO Bonds Fiscal 2006 - Series F-3
LOC Royal Bank of Scotland PLC 09/01/35 3.80 10,000,000 VMIG-1 A-1+
3,500,000 Newburgh, NY IDA Civil Facility RB (Community Development
Properties Dubois St. II Inc. Project) - Series 2005-A
LOC KeyBank, N.A. 10/01/30 3.84 3,500,000 VMIG-1
3,825,000 Ononadaga County, NY IDA
(Ononadaga Community College) - Series 2005 A
LOC Citizens Bank, N.A. 12/01/30 3.82 3,825,000 A-1+
2,000,000 P - Floats - Series PA-625 (Puerto Rico Commonwealth Public
Improvement Refunding GO - Series 1993)
Insured by AMBAC Assurance Corp. 07/01/10 3.79 2,000,000 A-1+
3,400,000 P - Floats - Series PA-783 (Puerto Rico Infrastructure Financing
Authority Special Obligation Bonds 2000 - Series A)
Collateralized by SLGS Securities 10/01/19 3.79 3,400,000 A-1+
10,515,000 ROCs II-R Trust - Series 2019 (New York City Transitional Finance
Authority - Series 2003 E)
Insured by MBIA Insurance Corp. 02/01/20 3.83 10,515,000 VMIG-1
3,000,000 ROCs II-R Trust - Series 458 (New York State Thruway Authority,
General Highway and Bridge Trust Fund Bonds - Series 2005 B)
Insured by AMBAC Assurance Corp. 04/01/20 3.83 3,000,000 VMIG-1
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The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2006
================================================================================
Ratings (a)
-----------------
Face Maturity Current Value Standard
Amount Date Coupon (b) (Note 1) Moody's & Poor's
------ ---- --------- ------ ------- --------
Variable Rate Demand Instruments (d) (Continued)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 5,000,000 Societe Generale Municipal Securities Trust Receipts
- Series 1997 SGB 25 (New York City, NY Municipal Water Finance
Authority RB - 1997B)
Insured by MBIA Insurance Corp. 06/15/23 3.83% $ 5,000,000 A-1+
100,000 Societe Generale Municipal Securities Trust Receipts
- Series 1997 SGB 33 (New York City, NY GO Bonds, Fiscal 1996 -
Series F)
Insured by FSA 02/01/19 3.83 100,000 A-1+
5,000,000 TOCs - Series 2000-1 (Puerto Rico Infrastructure Financing
Authority Special Obligation Bonds 2000 - Series A)
Collateralized by SLGS Securities 04/01/27 3.81 5,000,000 A-1+
5,000,000 TOCs Trust - Series 2001-2 (Puerto Rico Public Improvement
GO Bonds of 2001)
Insured by FSA 07/01/19 3.81 5,000,000 A-1+
10,000,000 Triborough Building & Tunnel Authority General - Series 2002 F 11/01/32 3.79 10,000,000 VMIG-1 A-1+
10,385,000 UBS Municipal Custodial Variable Securities Floaters - Series 2005-13A
(New York State Dormitory Authority - Series 2005 B)
Insured by AMBAC Assurance Corp. 09/15/24 3.83 10,385,000 A-1+
- ----------- ------------
334,978,300 Total Variable Rate Demand Instruments 334,978,300
- ----------- ------------
Variable Rate Demand Instrument - Private Placement (d) (0.70%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 3,000,000 Orange County, NY IDA IDRB (1986 Blaser Real Estate Inc. Project)
LOC UBS AG 09/01/21 5.04% $ 3,000,000 P-1 A1+
- ----------- ------------
3,000,000 Total Variable Rate Demand Instrument - Private Placement 3,000,000
- ----------- ------------
Total Investments (100.24%) (Amortized cost $425,799,343+) $425,799,343
Liabilities in excess of cash and other assets (-0.24%) (1,030,128)
------------
Net Assets (100.00%) $424,769,215
============
<FN>
+ Aggregate cost for federal income tax purposes is identical.
</FN>
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The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
================================================================================
FOOTNOTES:
(a) Unless the securities are assigned their own ratings, the ratings are those
of the bank whose letter of credit guarantees the issue or the insurance
company who insures the issue. All letters of credit and insurance are
irrevocable and direct pay covering both principal and interest. Ratings
are unaudited.
In addition, certain issuers may have either a line of credit, a liquidity
facility, a standby purchase agreement or some other financing mechanism to
ensure the remarketing of the securities. This is not a guarantee and does
not serve to insure or collateralize the issue.
(b) The interest rate shown reflects the security's current coupon, unless
yield is available.
(c) Securities that are not rated that the Adviser has determined to be of
comparable quality to those rated securities in which the Fund invests.
(d) Securities payable on demand at par including accrued interest (usually
with seven days' notice) and, if indicated, unconditionally secured as to
principal and interest by a bank letter of credit. The interest rates are
adjustable and are based on bank prime rates or other interest rate
adjustment indices. The rate shown is the rate in effect at the date of
this statement.
KEY:
BAN = Bond Anticipation Note IDRB = Industrial Development Revenue Bond
COPs = Certificates of Participation LOC = Letter of Credit
CSD = Central School District MHRB = Multi-Family Revenue Housing Bond
FGIC = Financial Guaranty Insurance Company RB = Revenue Bond
FHA = Federal Housing Administration ROCs = Reset Option Certificates
FSA = Financial Security Assurance SLGS = State and Local Government Series
GO = General Obligation TAN = Tax Anticipation Note
HDC = Housing Development Corporation TOCs = Tender Option Certificates
IDA = Industrial Development Authority
BREAKDOWN OF PORTFOLIO HOLDINGS BY STATE:
- ------------------------------------------------------------------
State Value % of Portfolio
- ------------------------------------------------------------------
New York $407,884,343 95.79%
Puerto Rico 17,915,000 4.21
- ------------------------------------------------------------------
Total $425,799,343 100.00%
- ------------------------------------------------------------------
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2006
================================================================================
ASSETS:
Investments in securities, at amortized cost (Note 1)................................ $ 425,799,343
Accrued interest receivable.......................................................... 3,521,862
Prepaid expenses..................................................................... 25,370
Other receivables.................................................................... 729
--------------
Total assets.................................................................. 429,347,304
--------------
LIABILITIES:
Payable to affiliates*............................................................... 234,080
Due to custodian..................................................................... 3,882,975
Accrued expenses..................................................................... 106,580
Dividends payable.................................................................... 354,454
--------------
Total liabilities............................................................. 4,578,089
--------------
Net assets........................................................................... $ 424,769,215
==============
SOURCE OF NET ASSETS:
Net capital paid in on shares of capital stock (Note 3).............................. $ 424,781,256
Accumulated net realized loss........................................................ (12,041)
--------------
Net assets........................................................................... $ 424,769,215
==============
Net asset value, per share (Note 3):
Class A shares, ($285,247,098 applicable to 285,256,318 shares outstanding) $ 1.00
========
Class B shares, ($33,329,499 applicable to 33,330,576 shares outstanding) $ 1.00
========
Victory shares, ($39,512,243 applicable to 39,513,521 shares outstanding) $ 1.00
========
Advantage shares, ($66,680,375 applicable to 66,682,530 shares outstanding) $ 1.00
========
<FN>
* Includes fees payable to Reich & Tang Asset Management, LLC, Reich & Tang Distributors, Inc. and Reich & Tang Services, Inc.
</FN>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED APRIL 30, 2006
================================================================================
INVESTMENT INCOME
Income:
Interest.................................................................. $ 12,906,866
----------------
Expenses: (Note 2)
Investment management fee................................................. 1,392,327
Administration fee........................................................ 974,629
Distribution fee (Advantage Shares)....................................... 323,041
Shareholder servicing fee (Class A)....................................... 596,686
Shareholder servicing fee (Victory Shares)................................ 86,946
Shareholder servicing fee (Advantage Shares).............................. 179,467
Custodian expenses........................................................ 45,824
Shareholder servicing and related shareholder expenses+................... 245,035
Legal, compliance and filing fees......................................... 177,506
Audit and accounting...................................................... 141,743
Directors' fees and expenses.............................................. 46,419
Other expenses............................................................ 26,911
----------------
Total expenses........................................................ 4,236,534
Less: Expenses paid indirectly (Note 2).............................. (248)
Fees Waived (Note 2)........................................... (219,953)
----------------
Net expenses ............................................................. 4,016,333
----------------
Net investment income........................................................ 8,890,533
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investments............................................. 13,482
----------------
Increase in net assets from operations....................................... $ 8,904,015
================
<FN>
+ Includes class specific transfer agency expenses of $149,166, $25,253 and
$21,736 for Class A, Class B and Victory Shares, respectively.
</FN>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED APRIL 30, 2006 AND 2005
================================================================================
2006 2005
---------------- ----------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income......................................... $ 8,890,533 $ 3,352,664
Net realized gain (loss) on investments....................... 13,482 (17,929)
---------------- ----------------
Increase in net assets from operations........................ 8,904,015 3,334,735
Dividends to shareholders from net investment income*:
Class A....................................................... (5,713,754) (2,114,974)
Class B....................................................... (1,081,238) (430,993)
Victory Shares................................................ (822,999) (355,460)
Advantage Shares.............................................. (1,272,542) (451,237)
----------------- ----------------
Total dividends to shareholders............................... (8,890,533) (3,352,664)
Distributions to shareholders from realized gain (loss) on investments:
Class A....................................................... (4,822) -0-
Class B....................................................... (692) -0-
Victory Shares................................................ (827) -0-
Advantage Shares.............................................. (1,253) -0-
----------------- ----------------
Total distributions to shareholders........................... (7,594) -0-
Capital share transactions (Note 3):
Class A....................................................... 2,109,963 (13,725,723)
Class B....................................................... (6,502,006) (11,578,460)
Victory Shares................................................ (6,473,806) (7,628,452)
Advantage Shares.............................................. (4,883,520) 34,880,420
---------------- ----------------
Total capital share transactions.............................. (15,749,369) 1,947,785
---------------- ----------------
Total increase (decrease)................................. (15,743,481) 1,929,856
Net assets:
Beginning of year............................................. 440,512,696 438,582,840
---------------- ----------------
End of year................................................... $ 424,769,215 $ 440,512,696
================ ================
Undistributed net investment income........................... $ -0- $ -0-
================ ================
<FN>
* Designated as exempt-interest dividends for federal income tax purposes.
</FN>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS
================================================================================
1. Summary of Accounting Policies
New York Daily Tax Free Income Fund, Inc. (the "Fund") is a no-load,
non-diversified, open-end management investment company registered under the
Investment Company Act of 1940. The Fund is a short-term, tax exempt money
market fund. The Fund has four classes of stock authorized, Class A, Class B,
Victory and Advantage New York Tax Exempt Liquidity Fund Shares ("Advantage
Shares"). The Class A, Victory and Advantage Shares are subject to a service fee
pursuant to the Distribution and Service Plan. The Advantage Shares are also
subject to an additional distribution fee pursuant to a Shareholder Servicing
Agreement. The Class B shares are not subject to a service fee. Additionally,
the Fund may allocate among its classes certain expenses to the extent allowable
including transfer agent fees, government registration fees, certain printing
and postage costs, and certain administrative and legal expenses. Class specific
expenses of the Fund are limited to shareholder servicing fees, distribution
fees and transfer agent expenses. Income, expenses (other than expenses
attributable to a specific class), and realized and unrealized gains or losses
on investments are allocated to each class of shares based on its relative net
assets. In all other respects, all share classes represent the same interest in
the income and assets of the Fund. The Advantage Shares commenced on November
22, 2002.
The Fund's financial statements are prepared in accordance with accounting
principles generally accepted in the United States of America for investment
companies as follows:
a) Valuation of Securities -
Investments are valued at amortized cost, which approximates market value.
Under this valuation method, a portfolio instrument is valued at cost and
any discount or premium is amortized on a constant basis to the maturity of
the instrument. If fluctuating interest rates cause the market value of the
Fund's portfolio to deviate more than 1/2 of 1% from the value determined
on the basis of amortized cost, the Board of Directors will consider
whether any action should be initiated. The maturity of variable rate
demand instruments is deemed to be the longer of the period required before
the Fund is entitled to receive payment of the principal amount or the
period remaining until the next interest rate adjustment.
b) Federal Income Taxes -
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its tax exempt and taxable (if any) income to its shareholders.
Therefore, no provision for federal income tax is required.
c) Dividends and Distributions -
Dividends from net investment income (excluding long-term capital gains and
losses, if any, and amortization of market discount) are declared daily and
paid monthly. Net realized capital gains, if any, are distributed at least
annually and in no event later than 60 days after the end of the Fund's
fiscal year.
d) Use of 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 increases and decreases in net assets from operations during the
reporting period. Actual results could differ from those estimates.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
1. Summary of Accounting Policies (Continued)
e) General -
Securities transactions are recorded on a trade date basis. Interest
income, including accretion of discount and amortization of premium, is
accrued as earned. Realized gains and losses from securities transactions
are recorded on the identified cost basis.
2. Investment Management Fees and Other Transactions with Affiliates
Under the Investment Management Contract, the Fund pays an investment management
fee to Reich & Tang Asset Management LLC (the "Manager"), equal to an annual
rate of .30% of the Fund's average daily net assets.
Pursuant to an Administrative Services Agreement, the Fund pays to the Manager
an annual fee of .21% of the Fund's average daily net assets.
Pursuant to the Fund's Distribution Plans adopted under Securities and Exchange
Commission Rule 12b-1, the Fund and Reich & Tang Distributors, Inc. (the
"Distributor"), an affiliate of the Manager, have entered into a Distribution
Agreement and a Shareholder Servicing Agreement, with respect to the Class A,
Victory and Advantage Shares of the Fund. For its services under the Shareholder
Servicing Agreement, the Distributor receives from the Fund a fee equal to .20%
of the Fund's average daily net assets with respect to the Class A and Victory
Shares and a service fee of .25% with respect to the Advantage Shares. In
addition, for its services under the Distribution Agreement, the Distributor
receives .45% per annum in distribution fees of the Advantage Shares' average
daily net assets. There were no additional expenses borne by the Fund pursuant
to the Distribution Plan.
For the year ended April 30, 2006 the Distributor voluntarily waived the
following fees:
Distribution fees - Advantage Shares $ 40,486
Shareholder servicing fees - Advantage Shares 179,467
----------
Total fees waived $ 219,953
==========
The Distributor has no right to recoup prior waivers.
Fees are paid to Directors who are unaffiliated with the Manager on the basis of
$7,000 per annum, plus a fee of $1,375 per Board of Directors meeting attended.
Included in the Statement of Operations under the caption "Shareholder servicing
and related shareholder expenses" are fees of $196,254 paid to Reich & Tang
Services, Inc., ("The Transfer Agent") an affiliate of the Manager, as
shareholder servicing agent for the Fund. Pursuant to the Transfer Agency
Agreement, the Transfer Agent receives a fee of $17.40 per account per year or a
minimum of 0.05% of the monthly average net assets of the Class A, Victory and
Class B shares of the Fund. For the year ended April 30, 2006, these fees
amounted to an annual rate of 0.05% of the monthly average net assets of the
Class A, Victory and Class B shares of the Fund.
For the year ended April 30, 2006 the breakdown of expenses paid indirectly by
the Fund were as follows:
Shareholder servicing and related expenses $ 248
==========
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
3. Capital Stock
At April 30, 2006, 20,000,000,000 shares of $.001 par value stock were
authorized. Transactions in capital stock, all at $1.00 per share, were as
follows:
Year Year
Ended Ended
April 30,2006 April 30, 2005
------------- --------------
Class A
- -------
Sold...................................... 1,159,330,082 1,180,832,049
Issued on reinvestment of dividends....... 3,197,390 1,148,123
Redeemed.................................. (1,160,417,509) (1,195,705,895)
--------------- ---------------
Net increase (decrease)................... 2,109,963 (13,725,723)
=============== ===============
Class B
- -------
Sold...................................... 140,490,280 188,232,629
Issued on reinvestment of dividends....... 1,074,155 411,002
Redeemed.................................. (148,066,441) (200,222,091)
--------------- ---------------
Net increase (decrease)................... (6,502,006) (11,578,460)
=============== ===============
Victory Shares
- --------------
Sold...................................... 59,988,952 88,893,111
Issued on reinvestment of dividends....... 821,363 357,160
Redeemed.................................. (67,284,121) (96,878,723)
--------------- ---------------
Net increase (decrease)................... (6,473,806) (7,628,452)
=============== ===============
Advantage Shares
- ----------------
Sold...................................... 143,309,455 166,028,545
Issued on reinvestment of dividends....... 1,255,414 422,774
Redeemed.................................. (149,448,389) (131,570,899)
--------------- ---------------
Net increase (decrease)................... (4,883,520) 34,880,420
=============== ===============
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
4. Tax Information
The tax character of distributions paid during the years ended April 30, 2006
and 2005 were as follows:
2006 2005
------------ ------------
Tax-exempt income............................... $ 8,890,533 $ 3,352,664
Long-term capital gains......................... 7,594 -0-
------------ ------------
Total distributions............................. $ 8,898,127 $ 3,352,664
============ ============
At April 30, 2006, the Fund had unused capital loss carryforwards of $12,041
available for Federal Income Tax purposes to be applied against future gains, if
any. If not applied against future gains, $12,041 will expire in 2014.
At April 30, 2006, the Fund had no ordinary distributable earnings.
5. Concentration of Credit Risk
The Fund invests primarily in obligations of political subdivisions of the State
of New York and, accordingly, is subject to the credit risk associated with the
non-performance of such issuers. Approximately 76% of these investments are
further secured, as to principal and interest, by credit enhancements such as
letters of credit, municipal bond insurance, and guarantees issued by financial
institutions. The Fund maintains a policy of monitoring its exposure by
reviewing the credit worthiness of the issuers, as well as that of the financial
institutions issuing the credit enhancements, and by limiting the amount of
holdings with credit enhancements from one financial institution.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
6. Financial Highlights
Class A shares For the Year Ended April 30,
- -------------- --------------------------------------------------------------
2006 2005 2004 2003 2002
---------- ---------- ---------- ---------- ----------
Per Share Operating Performance:
(for a share outstanding throughout the year)
Net asset value, beginning of year............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income....................... 0.019 0.007 0.002 0.006 0.012
Net realized and unrealized gain(loss)
on investments............................. 0.000 (0.000) -- 0.000 --
---------- ---------- ---------- ---------- ----------
Total from investment operations............ 0.019 0.007 0.002 0.006 0.012
Less distributions from:
Dividends from net investment income........ (0.019) (0.007) (0.002) (0.006) (0.012)
Net realized gain(loss) on investments...... (0.000) -- -- (0.000) --
---------- ---------- ---------- ---------- ----------
Total distributions......................... (0.019) (0.007) (0.002) (0.006) (0.012)
---------- ---------- ---------- ---------- ----------
Net asset value, end of year................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total Return................................... 1.93% 0.70% 0.21% 0.59% 1.23%
Ratios/Supplemental Data
Net assets, end of year (000's)................ $ 285,247 $ 283,134 $ 296,871 $ 324,086 $ 343,895
Ratios to average net assets:
Expenses (a)................................ 0.86% 0.86% 0.83% 0.82% 0.85%
Net investment income....................... 1.91% 0.70% 0.21% 0.59% 1.27%
Expenses paid indirectly.................... 0.00% 0.00% 0.00% 0.00% 0.00%
<FN>
(a) Includes expenses paid indirectly
</FN>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
6. Financial Highlights (Continued)
Class B shares For the Year Ended April 30,
- -------------- --------------------------------------------------------------
2006 2005 2004 2003 2002
---------- ---------- ---------- ---------- ----------
Per Share Operating Performance:
(for a share outstanding throughout the year)
Net asset value, beginning of year............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income....................... 0.021 0.009 0.004 0.008 0.015
Net realized and unrealized gain(loss)
on investments............................. 0.000 (0.000) -- 0.000 --
---------- ---------- ---------- ---------- ----------
Total from investment operations............ 0.021 0.009 0.004 0.008 0.015
Less distributions from:
Dividends from net investment income........ (0.021) (0.009) (0.004) (0.008) (0.015)
Net realized gain(loss) on investments...... (0.000) -- -- (0.000) --
---------- ---------- ---------- ---------- ----------
Total distributions......................... (0.021) (0.009) (0.004) (0.008) (0.015)
---------- ---------- ---------- ---------- ----------
Net asset value, end of year................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total Return................................... 2.14% 0.90% 0.41% 0.79% 1.46%
Ratios/Supplemental Data
Net assets, end of year (000's)................ $ 33,330 $ 39,831 $ 51,411 $ 46,966 $ 50,441
Ratios to average net assets:
Expenses (a)................................ 0.67% 0.66% 0.63% 0.61% 0.62%
Net investment income....................... 2.14% 0.88% 0.40% 0.77% 1.44%
Expenses paid indirectly.................... 0.00% 0.00% 0.00% 0.00% 0.00%
<FN>
(a) Includes expenses paid indirectly
</FN>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
6. Financial Highlights (Continued)
Victory shares For the Year Ended April 30,
- -------------- --------------------------------------------------------------
2006 2005 2004 2003 2002
---------- ---------- ---------- ---------- ----------
Per Share Operating Performance:
(for a share outstanding throughout the year)
Net asset value, beginning of year............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income....................... 0.019 0.007 0.002 0.006 0.012
Net realized and unrealized gain(loss)
on investments............................. 0.000 (0.000) -- 0.000 --
---------- ---------- ---------- ---------- ----------
Total from investment operations............ 0.019 0.007 0.002 0.006 0.012
Less distributions from:
Dividends from net investment income........ (0.019) (0.007) (0.002) (0.006) (0.012)
Net realized gain(loss) on investments...... (0.000) -- -- (0.000) --
---------- ---------- ---------- ---------- ----------
Total distributions......................... (0.019) (0.007) (0.002) (0.006) (0.012)
---------- ---------- ---------- ---------- ----------
Net asset value, end of year................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total Return................................... 1.93% 0.70% 0.21% 0.59% 1.23%
Ratios/Supplemental Data
Net assets, end of year (000's)................ $ 39,512 $ 45,985 $ 53,616 $ 79,783 $ 89,963
Ratios to average net assets:
Expenses (a)................................ 0.86% 0.86% 0.83% 0.82% 0.85%
Net investment income....................... 1.91% 0.70% 0.21% 0.59% 1.27%
Expenses paid indirectly.................... 0.00% 0.00% 0.00% 0.00% 0.00%
<FN>
(a) Includes expenses paid indirectly
</FN>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
6. Financial Highlights (Continued)
November 22, 2002
Advantage Shares For the Year Ended April 30, (Commencement of
- ---------------- -------------------------------------- Offering) to
2006 2005 2004 April 30, 2003
---------- ---------- ---------- --------------
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- ----------
Income from investment operations:
Net investment income................................. 0.018 0.006 0.001 0.001
Net realized and unrealized gain(loss) on investments. 0.000 (0.000) -- 0.000
---------- ---------- ---------- ----------
Total from investment operations...................... 0.018 0.006 0.001 0.001
Less distributions from:
Dividends from net investment income.................. (0.018) (0.006) (0.001) (0.001)
Net realized gain(loss) on investments................ (0.000) -- -- (0.000)
---------- ---------- ---------- ----------
Total distributions................................... (0.018) (0.006) (0.001) (0.001)
---------- ---------- ---------- ----------
Net asset value, end of period........................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ==========
Total Return............................................. 1.79% 0.61% 0.15% 0.15%(a)
Ratios/Supplemental Data
Net assets, end of period (000's)........................ $ 66,680 $ 71,563 $ 36,685 $ 57,249
Ratios to average net assets:
Expenses (b) (net of fees waived)..................... 1.01% 0.95% 0.89% 0.90%(c)
Net investment income................................. 1.77% 0.63% 0.14% 0.33%(c)
Expenses paid indirectly.............................. 0.00% 0.00% 0.00% 0.00%(c)
Distribution and shareholder servicing fees waived.... 0.31% 0.36% 0.39% 0.37%(c)
<FN>
(a) Not annualized
(b) Includes expenses paid indirectly
(c) Annualized
</FN>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
================================================================================
To the Board of Directors and Shareholders of
New York Daily Tax Free Income Fund, Inc.
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of New York Daily Tax Free Income
Fund, Inc. (the "Fund") at April 30, 2006, the results of its operations for the
year then ended, the changes in its net assets for each of the two years in the
period then ended and the financial highlights for each of the periods
presented, in conformity with accounting principles generally accepted in the
United States of America. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Fund's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements 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 are free of material misstatement. An audit 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, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at April
30, 2006 by correspondence with the custodian, provide a reasonable basis for
our opinion.
PricewaterhouseCoopers LLP
New York, New York
June 16, 2006
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
ADDITIONAL INFORMATION
(UNAUDITED)
================================================================================
ADDITIONAL INFORMATION ABOUT PORTFOLIO HOLDINGS
The Fund is required to file its complete schedule of portfolio holdings with
the Securities and Exchange Commission ("SEC") on Form N-Q for its first and
third fiscal quarters. The Fund's Form N-Q is available without charge on the
SEC's website (http://www.sec.gov) or by calling the Fund toll free at (800)
433-1918. You can also obtain copies of the Fund's Form N-Q by visiting the
SEC's Public Reference Room in Washington, DC (please call the SEC at (800)
732-0330 for information on the operation of the Public Reference Room).
INFORMATION ABOUT PROXY VOTING
Information regarding the Fund's proxy voting record for the 12 month period
ending June 30 of each year is filed with the SEC on Form N-PX no later than
August 31 of each year. The Fund's Form N-PX is available without charge, upon
request, by calling the Fund at (800) 433-1918 and on the SEC's website
(http://www.sec.gov). The Fund does not presently invest in voting securities
and has therefore not adopted proxy voting policies and procedures.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
INFORMATION ABOUT THE INVESTMENT MANAGEMENT CONTRACT
New York Daily Tax Free Income Fund, Inc.
On March 7, 2006, the Board of Directors approved the continuance of the
Investment Management Contract. In determining whether to approve the
continuance of the Investment Management Contract, the Directors considered the
following information:
1) The nature, extent and quality of services provided by the Manager.
The Directors reviewed in detail the nature and extent of the services provided
by the Manager under the terms of the Fund's Investment Management Contract and
the quality of those services over the past year. The Directors noted that the
services include managing the investment and reinvestment of the Fund's assets;
the provision of reports to the Board regarding changes in portfolio holdings,
important developments affecting the entities whose securities are included in
the Fund's portfolio, and the money market industry and the economy in general;
and the compensation of all officers, directors and employees of the Fund who
are officers of the Manager or its affiliates. The Board also observed that the
Manager provides various administrative services to the Fund pursuant to the
terms of a separate Administrative Services Contract and considered the nature,
extent and quality of services provided under that agreement as well. The
Directors evaluated these factors based on their direct experience with the
Manager and in consultation with counsel to the independent Directors and Fund
counsel. The Directors concluded that the nature and extent of the services
provided under the Investment Management Contract were reasonable and
appropriate in relation to the management fee, that the level of services
provided by the Manager had not diminished over the past year and that the
quality of services continues to be high. The Directors reviewed the personnel
responsible for providing advisory services to the Fund and concluded, based on
their experience and interaction with the Manager, that (i) the Manager was able
to retain quality portfolio managers and other personnel; (ii) the Manager
exhibited a high level of diligence and attention to detail in carrying out its
advisory responsibilities under the Investment Management Contract; (iii) the
Manager was responsive to requests of the Directors; and (iv) the Manager had
kept the Directors apprised of developments relating to the Fund and the
industry in general. The Directors also focused on the Manager's reputation and
long-standing relationship with the Fund and, in particular, the experience of
the Manager in advising money market funds. The Directors also noted the high
quality of services provided by the Manager under the Administrative Services
Contract.
2) The performance of the Fund and the Manager.
The Directors reviewed the investment performance of the Fund, both on an
absolute basis and as compared to various Lipper peer group categories on a
gross basis for the one-month, one-, three-, five- and ten-year periods ended
December 31, 2005. The peer group categories included: (i) an asset-based peer
group of no-load New York tax-exempt money market funds, as classified by
Lipper, as the peer group for the Fund's Class A shares ("expense group 1");
(ii) a competitors class peer group, representing other New York tax-exempt
funds that are considered to be competitors of the Fund's Class A shares with
similar distribution channels ("expense group 2"); and (iii) a peer group of all
funds in the Lipper universe with similar load-type to the Fund regardless of
asset size ("expense universe"). These peer groups are collectively referred to
as the "Peer Groups." The Manager advised the Board that it does not advise or
subadvise: (i) other funds with a similar investment policy to the Fund's; or
(ii) other types of accounts, such as institutional and pension accounts, with a
similar investment policy to the Fund's. The Directors used the Fund's
performance against the Peer Groups to provide objective comparative benchmarks
against which they could assess the Fund's performance. The Directors considered
those comparisons as helpful in their assessment as to whether the Manager was
obtaining for the Fund's shareholders the performance that was available in the
marketplace given the Fund's investment objectives, strategies, limitations and
restrictions.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
ADDITIONAL INFORMATION (CONTINUED)
(UNAUDITED)
================================================================================
INFORMATION ABOUT THE INVESTMENT MANAGEMENT CONTRACT (Continued)
2) The performance of the Fund and the Manager. (Continued)
In particular, the Board noted that the gross performance of the Fund against
all the Peer Groups was satisfactory and that the Fund's ranking against the
Lipper performance universe (which includes all funds in the expense universe)
was in the lst quintile for one-month period, 4th quintile for the one-year
period, 2nd quintile for the three- and ten-year periods and 3rd quintile for
the five-year period (lst quintile being the highest).
In connection with its assessment of the performance of the Manager, the
Directors considered the Manager's financial condition and whether it has the
resources necessary to continue to carry out its obligations under the
Investment Management Contract. The Directors took into account, in this regard,
the payments made by the Manager from its own resources to securities brokers,
banks and financial institutions or other industry professionals or
organizations whose customers are shareholders of the Fund ("Participating
Organizations") in connection with distribution assistance and shareholder
servicing provided by the Participating Organizations. The Directors concluded
that the Manager had the financial resources necessary to continue to perform
its obligations under the Investment Management Contract and to continue to
provide the high quality services that it had provided to the Fund to date.
3) The cost of the advisory services and the profits to the Manager and its
affiliates from the relationship with the Fund.
In connection with the Directors' consideration of the level of the management
fee, the Directors considered a number of factors. The Directors compared the
level of the management fee for the Fund against the advisory fees charged to
funds in the Peer Groups and the Fund's combined management-administrative fees
against fees covering both advisory and administrative services charged to the
funds in the Peer Groups. The Directors also considered comparative total fund
expenses of the Class A shares of the Fund and the Peer Groups. The Directors
used this combined fee information and total expense data as a guide to help
assess the reasonableness of the Fund's management fee, although they
acknowledged that it was difficult to make precise comparisons with other funds
since the exact nature of services provided under the Peer Group fund agreements
is often not apparent. The Directors also viewed the Peer Group fee information
as a whole as useful in assessing whether the Manager was providing services at
a cost that was competitive with other, similar funds. In assessing this
information, the Directors considered both the comparative contract rates as
well as the level of the management fees after waivers and/or reimbursements.
The Board noted that the contract rates of the Fund's management fee and
combined fees (management and administrative) were reasonable when compared to
the Peer Groups. The Board also acknowledged that the differences in expense
ratios as between the various shares classes of the Fund was primarily due to
the differences in 12b-1 fees payable by the classes in connection with the
distribution channels through which each class was sold. The Directors also
noted that the Manager did not advise or sub-advise any other registered
investment companies or other types of accounts, such as institutional or
pension accounts, with a similar investment policies to the Fund. The Directors
concluded that the level of the management fee was reasonable in light of these
factors.
The Directors also considered the profitability to the Manager and its
affiliates arising out of their relationships with the Fund. In this regard the
Directors reviewed profitability data relating to the Manager and its affiliates
for the year ended December 31, 2005. The Directors considered revenues received
by the Manager under the Investment Management Contract and Administrative
Services Contract as well as revenues received by the Manager's affiliates under
the 12b-1 Plans and related agreements, Transfer Agency Agreement and revenues
derived from Reich & Tang's cash management business (e.g. checking and debit
card services that are offered by Reich & Tang to Fund shareholders through
certain Participating Organizations). The Directors concluded that the
profitability of the Fund to the Manager and its affiliates was reasonable.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
INFORMATION ABOUT THE INVESTMENT MANAGEMENT CONTRACT (Continued)
4) The extent to which economies of scale will be realized as the Fund
grows and whether fee levels reflect those economies of scale.
With respect to the Directors' consideration of economies of scale, the
Directors discussed with the Manager whether economies of scale would be
realized by it in its management of the Fund at higher asset levels. The
Directors also discussed with the Manager whether certain of the Manager's costs
would increase if asset levels rise and observed that as assets rise, the
Manager and its affiliates may be required to pay increased fees to
Participating Organizations. The Directors also reviewed the Peer Group data to
assess whether the Peer Group funds had advisory or administrative fee
breakpoints and, if so, at what asset levels. The Directors concluded that they
were unable to assess at this time whether economies of scale would be realized
if the Fund were to experience significant asset growth. In the event there were
significant asset growth in the future, the Directors determined to reassess
whether the management fee appropriately took into account any economies of
scale that had been realized as a result of that growth.
5) Other Factors.
In addition to the above factors, the Directors acknowledged the importance of
the ability of the Manager's affiliate, the distributor, to market the Fund
through its distribution networks, including its customer service and
administration system with banks and bank customers.
Based on a consideration of all these factors in their totality, the Directors,
including all of the disinterested Directors, determined that the Fund's
management fee was fair and reasonable with respect to the quality of services
that the Manager provides and in light of the other factors described above that
the Directors deemed relevant. The Directors based their decision on evaluations
of all these factors as a whole and did not consider any one factor as
all-important or controlling. The disinterested Directors were also assisted by
the advice of independent counsel in making this determination.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
ADDITIONAL INFORMATION (CONTINUED)
(UNAUDITED)
================================================================================
Directors and Officers Information
April 30, 2006(1)
- -------------------- ------------- --------------- ------------------------------------- -------------------- ----------------
Name, Address(2), Position(s) Term of Principal Occupation(s) Number of Other
and Age Held with Office(3) During Past Portfolios in Directorships
Fund and Length of 5 Years Fund Complex held by
Time Served Overseen by Director Director
- -----------------------------------------------------------------------------------------------------------------------------------
Disinterested Directors:
- -----------------------------------------------------------------------------------------------------------------------------------
Edward A. Kuczmarksi, Director 1984 Certified Public Accountant and Director of twelve Trustee of the
Age 56 Partner of Hays & Company LLP since portfolios Empire Builder
1980. Tax Free Bond
Fund
- -------------------- ------------- --------------- ------------------------------------- -------------------- ----------------
Caroline E. Newell, Director 1984 Director of the Park Avenue Church Director of one Trustee of the
Age 65 Day School since 2001. Director of portfolio Empire Builder
Chateau Tax Free Bond des Enfants and Tax Free Bond
the American Fund School in Fund
Switzerland, both since 1990.
- -------------------- ------------- --------------- ------------------------------------- -------------------- ----------------
John P. Steines, Director 1984 Professor of Law, New York University Director of one Trustee of the
Age 57 School of Law since 1980. portfolio Empire Builder
Tax Free Bond
Fund
- -------------------- ------------- --------------- ------------------------------------- -------------------- ----------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
Directors and Officers Information
April 30, 2006(1)
- -------------------- ------------- --------------- ------------------------------------- -------------------- ----------------
Name, Address(2), Position(s) Term of Principal Occupation(s) Number of Other
and Age Held with Office(3) During Past Portfolios in Directorships
Fund and Length of 5 Years Fund Complex held by
Time Served Overseen by Director Director
- -----------------------------------------------------------------------------------------------------------------------------------
Interested Directors/Officers:
- -----------------------------------------------------------------------------------------------------------------------------------
Steven W. Duff, President Manager and President of Reich & Tang Director/Trustee None
Age 52 and Asset Management, LLC ("RTAM, LLC"), and/or Officer of
Director(4) Since 1994 a registered Investment Advisor and Sixteen portfolios
President of the Mutual Funds Division
Division of RTAM, LLC. Associated
with RTAM, LLC since 1994. Mr. Duff
is also President and Director/Trustee
of eight other funds in the Reich &
Tang Fund Complex, Director of Pax
World Money Market Fund, Inc.,
Principal Executive Officer of
Delafield Fund, Inc. and President
and Chief Executive Officer of Tax
Exempt Proceeds Fund, Inc. Mr. Duff
also serves as a Director of Reich &
Tang Services, Inc. and Reich & Tang
Distributors, Inc.
- -------------------- ------------- --------------- ------------------------------------- -------------------- ----------------
Richard De Vice Executive Vice President and CFO of N/A N/A
Sanctis, Age 49 President Since 2005 RTAM LLC. Associated with RTAM, LLC
since 1990. Mr. De Sanctis is Vice
Treasurer Presidet of ten other funds in the
and Reich & Tang Fund Complex, Vice
Assistant President and Assistant Secretary of
Secretary 1992 to 2004 Cortland Trust, Inc. and serves as
Executive Vice President and Chief
Financial Officer of Reich & Tang
Services, Inc. and Reich & Tang
Distributors, Inc. Prior to December
2004, Mr. De Sanctis was Treasurer
and Assistant Secretary of eleven
funds in the Reich & Tang Fund
Complex and Vice President, Treasurer
and Assistant Secretary of Cortland
Trust, Inc.
- -------------------- ------------- --------------- ------------------------------------- -------------------- ----------------
Molly Flewharty, Vice Senior Vice President of RTAM, LLC. N/A N/A
Age 55 President Since 1986 Associated with RTAM, LLC since 1977.
Ms. Flewharty is also Vice President
of eleven other funds in the Reich &
Tang Fund Complex. Ms. Flewharty also
serves as Senior Vice President of
Reich & Tang Distributors, Inc.
- -------------------- ------------- --------------- ------------------------------------- -------------------- ----------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NEW YORK DAILY TAX FREE INCOME FUND, INC.
ADDITIONAL INFORMATION (CONTINUED)
(UNAUDITED)
================================================================================
Directors and Officers Information
April 30, 2006(1)
- -------------------- ------------- --------------- ------------------------------------- -------------------- ----------------
Name, Address(2), Position(s) Term of Principal Occupation(s) Number of Other
and Age Held with Office(3) During Past Portfolios in Directorships
Fund and Length of 5 Years Fund Complex held by
Time Served Overseen by Director Director
- -----------------------------------------------------------------------------------------------------------------------------------
Interested Directors/Officers:
- -----------------------------------------------------------------------------------------------------------------------------------
Rosanne Holtzer, Chief Senior Vice President, Compliance N/A N/A
Age 41 Compliance Officer and Assistant Secretary of
Officer Since 2005 RTAM, LLC. Associated with RTAM, LLC
since 1986. Ms. Holtzer is also
Secretary Since 2001 Chief Compliance Officer, Secretary
and Assistant Treasurer of eleven
Assistant Since 1998 other funds in the Reich & Tang Fund
Treasurer Complex. Ms. Holtzer also serves as
Senior Vice President, Assistant
Secretary & Compliance Officer of
Reich & Tang Distributors, Inc. and
Senior Vice President, Assistant
Secretary & Chief Compliance Officer
of Reich & Tang Services, Inc.
- -------------------- ------------- --------------- ------------------------------------- -------------------- ----------------
Michael Lydon, Vice Executive Vice President and Chief N/A N/A
Age 42 President Since 2005 Operations Officer of RTAM, LLC.
Associated with RTAM, LLC since
January 2005. Mr. Lydon was Vice
President at Automatic Data
Processing from July 2000 to December
2004. Prior to July 2000, Mr. Lydon
was Executive Vice President and
Chief Information Officer of RTAM,
LLC. Mr. Lydon is also Vice President
of eleven other funds in the Reich &
Tang Fund Complex. Mr. Lydon also
serves as Executive Vice President
and Chief Operations Officer for
Reich & Tang Distributors, Inc. and
Reich & Tang Services, Inc.
- -------------------- ------------- --------------- ------------------------------------- -------------------- ----------------
Dana E. Messina, Vice Executive Vice President of RTAM, LLC. N/A N/A
Age 49 President Since 1986 Associated with RTAM, LLC since 1980.
Ms. Messina is also Vice President of
eight other funds in the Reich & Tang
Fund Complex. Ms. Messina also serves
as Executive Vice President of Reich
& Tang Distributors, Inc.
- -------------------- ------------- --------------- ------------------------------------- -------------------- ----------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
Directors and Officers Information
April 30, 2006(1)
- -------------------- ------------- --------------- ------------------------------------- -------------------- ----------------
Name, Address(2), Position(s) Term of Principal Occupation(s) Number of Other
and Age Held with Office(3) During Past Portfolios in Directorships
Fund and Length of 5 Years Fund Complex held by
Time Served Overseen by Director Director
- -----------------------------------------------------------------------------------------------------------------------------------
Interested Directors/Officers:
- -----------------------------------------------------------------------------------------------------------------------------------
Anthony Pace, Treasurer Vice President of RTAM, LLC since N/A N/A
Age 40 and September 2004. Mr. Pace was a
Assistant Director of a Client Service Group at
Secretary Since 2004 GlobeOp Financial Services, Inc. from
May 2002 to August 2004 and
Controller/Director of Mutual Fund
Administration for Smith Barney Funds
Management LLC and Salomon Brothers
Asset Management Inc. from 1998 to
May 2002. Mr. Pace is also Treasurer
and Assistant Secretary of eleven
other funds in the Reich & Tang Fund
Complex.
- -------------------- ------------- --------------- ------------------------------------- -------------------- ----------------
<FN>
(1) The Statement of Additional Information includes additional information
about New York Daily Tax Free Income Fund, Inc. (the "Fund")
directors/officers and is available, without charge, upon request by
calling the Fund's transfer agent at (800) 433-1918.
(2) The address for each of the above directors/officers of the Fund is Reich &
Tang Asset Management, LLC, 600 Fifth Avenue, New York, NY 10020.
(3) Each Director will hold office for an indefinite term until the earliest of
(i) the next meeting of shareholders, if any, called for the purpose of
considering the election or re-election of such Director and until the
election and qualification of his or her successor, if any, elected at such
meeting, or (ii) the date a Director resigns or retires, or a Director is
removed by the Board of Directors or shareholders, in accordance with the
Fund's Articles of Incorporation, as amended, and Amended and Restated
By-Laws. Each officer will hold office for an indefinite term until the
date he or she resigns or retires or until his/her successor is elected and
qualifies.
(4) Steven W. Duff is deemed an interested person of the Fund due to his
affiliation with RTAM, LLC, the Fund's investment advisor.
</FN>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
This report is submitted for the general information of the shareholders of the
Fund. It is not authorized for distribution to prospective investors in the Fund
unless preceded or accompanied by an effective prospectus, which includes
information regarding the Fund's objectives and policies, experience of its
management, marketability of shares, and other information.
- --------------------------------------------------------------------------------
New York Daily Tax Free Income Fund, Inc.
600 Fifth Avenue
New York, New York 10020
Manager
Reich & Tang Asset Management, LLC
600 Fifth Avenue
New York, New York 10020
Custodian
The Bank of New York
2 Hanson Place, 7th Floor
Brooklyn, New York 11217
Transfer Agent &
Dividend Disbursing Agent
Reich & Tang Services, Inc.
600 Fifth Avenue
New York, New York 10020
NY 04/06A
NEW YORK
DAILY
TAX FREE
INCOME
FUND, INC.
Annual Report
April 30, 2006
ITEM 2: CODE OF ETHICS
The registrant has adopted a Code of Ethics applicable to its Principal
Executive and Senior Financial Officers.
ITEM 3: AUDIT COMMITTEE FINANCIAL EXPERT
The registrant's Board of Directors has determined that there is an audit
committee financial expert serving on its audit committee, Edward A. Kuczmarski,
who is "independent," as defined in the instructions to this Item.
ITEM 4: PRINCIPAL ACCOUNTANT FEES AND SERVICES
FYE 04/30/2006 FYE 04/30/2005
4(a) Audit Fees $ 29,800 $ 24,800
4(b) Audit Related Fees $ 0 $ 0
4(c) Tax Fees $ 3,465 $ 3,410
4(d) All Other Fees $ 0 $ 0
4(e)(1) The audit committee has adopted pre-approval policies and procedures
whereby the audit committee has pre-approved the provision of certain enumerated
tax services to the registrant by the registrant's principal accountant to the
extent the fee is less than $5,000 per occurrence.
4(e)(2) None.
4(f) Not applicable.
4(g) $3,465 and $45,000, respectively, were the amount of non-audit fees that
were billed by the registrant's accountant for services rendered to (i) the
registrant, and (ii) the registrant's investment adviser and any control person
of the adviser that provides ongoing services to the registrant for the fiscal
year ended April 30, 2006. $3,410 and $22,500, respectively, were the amount of
non-audit fees that were billed by the registrant's accountant for services
rendered to (i) the registrant, and (ii) the registrant's investment adviser and
any control person of the adviser that provides ongoing services to the
registrant for the fiscal year ended April 30, 2005.
4(h) The registrant's audit committee has considered whether its principal
accountant's provision of non-audit services that were rendered to the
registrant's investment adviser, and any control persons of 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 accountant's independence.
ITEM 5: AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable.
ITEM 6: SCHEDULE OF INVESTMENTS
Schedule of Investments in securities of unaffiliated issuers is included under
Item 1.
ITEM 7: DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 8: PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS
Not applicable.
ITEM 9: SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There were no material changes to the procedures by which shareholders may
recommend nominees to the registrant's board of directors that were implemented
after the registrant last provided disclosure in response to the requirements of
Item 7(d)(2)(ii)(G) of Schedule 14A, or this Item 9.
ITEM 10: CONTROLS AND PROCEDURES
(a) The registrant's Principal Executive Officer and Principal Financial
Officer have evaluated the design and operation of the registrant's
disclosure controls and procedures within 90 days of this filing and
have concluded that the registrant's disclosure controls and procedures
were effective in ensuring that information required to be disclosed by
the registrant in this Form N-CSR was recorded, processed, summarized
and reported on a timely basis.
(b) There were no changes in the registrant's internal controls over
financial reporting that occurred during the second fiscal quarter
covered by this report that have materially affected, or are reasonably
likely to affect, the registrant's internal controls over financial
reporting.
ITEM 11: EXHIBITS
(a)(1) Code of Ethics.
(a)(2) Certifications of Principal Executive Officer and Principal Financial
Officer, under Rule 30a-2 of the Investment Company Act of 1940.
(a)(3) Not applicable.
(b) Certifications of Principal Executive Officer and Principal Financial
Officer, under Section 906 of the Sarbanes-Oxley Act of 2002 and 18
U.S.C. ss.1350.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) NEW YORK DAILY TAX FREE INCOME FUND, INC.
By (Signature and Title)* /s/Rosanne Holtzer
Rosanne Holtzer, Secretary
Date: June 30, 2006
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/Steven W. Duff
Steven W. Duff, President
Date: June 30, 2006
By (Signature and Title)* /s/Anthony Pace
Anthony Pace, Treasurer
Date: June 30, 2006
* Print the name and title of each signing officer under his or her signature.