SCHEDULE 14A INFORMATION 

             Proxy Statement Pursuant to Section 14(a) of the Securities
                       Exchange Act of 1934 (Amendment No.    )

          Filed by the Registrant [X]
          Filed by a Party other than the Registrant [ ]


          Check the appropriate box:

          [X]  Preliminary Proxy Statement
          [ ]  Confidential, for Use of the Commission Only (as permitted by
               Rule 14a-6(e)(2))
          [ ]  Definitive Proxy Statement
          [ ]  Definitive Additional Materials
          [ ]  Soliciting Material Pursuant to Section 240.14a-11(c) or
               Section 240.14a-12

                     SELIGMAN PENNSYLVANIA TAX-EXEMPT FUND SERIES
          .................................................................
                   (Name of Registrant as Specified In Its Charter)

          .................................................................
       (Name of Person(s) Filing Proxy Statement, if other than the Registrant)


          Payment of Filing Fee (Check the appropriate box):

          [X]  $125 per Exchange Act Rules 0-11(c)(1)(ii), 14a-6(i)(1),
               14a-6(i)(2) or Item 22(a)(2) of Schedule 14A.
          [ ]  $500 per each party to the controversy pursuant to Exchange
               Act Rule 14a-6(i)(3).
          [ ]  Fee computed on table below per Exchange Act Rules 
               14a-6(i)(4) and 0-11.

               1)  Title of each class of securities to which transaction
          applies:
                    
          .................................................................

               2)  Aggregate number of securities to which transaction
          applies:
                    
          .................................................................

               3)  Per unit price or other underlying value of transaction
          computed   pursuant to Exchange Act Rule 0-11 (Set forth the
          amount on which the filing fee is calculated and state how it was
          determined):
                     
          .................................................................

               4)  Proposed maximum aggregate value of transaction:
                    
          .................................................................

               5)  Total fee paid:
                  
          .................................................................

          [ ]  Fee paid previously with preliminary materials.
          [ ]  Check box if any part of the fee is offset as provided by
               Exchange Act Rule 0-11(a)(2) and identify the filing for
               which the offsetting fee was paid previously.  Identify the
               previous filing by registration statement number, or the
               Form or Schedule and the date of its filing.

               1)   Amount Previously Paid:
                     
          .................................................................

               2)   Form, Schedule or Registration Statement No.:

          .................................................................

               3)   Filing Party:

          .................................................................

               4)   Date Filed:

          .................................................................
                              

 

                  SELIGMAN NEW JERSEY TAX-EXEMPT FUND, INC.
                SELIGMAN PENNSYLVANIA TAX-EXEMPT FUND SERIES
                   SELIGMAN TAX-EXEMPT FUND SERIES, INC.

National  Tax-Exempt  Series,  Colorado  Tax-Exempt  Series,  Georgia Tax-Exempt
Series, Louisiana Tax-Exempt Series,  Maryland Tax-Exempt Series,  Massachusetts
Tax-Exempt  Series,  Michigan  Tax-Exempt Series,  Minnesota  Tax-Exempt Series,
Missouri Tax-Exempt Series, New York Tax-Exempt Series, Ohio Tax-Exempt  Series,
         Oregon Tax-Exempt Series and South Carolina Tax-Exempt Series

                           SELIGMAN TAX-EXEMPT SERIES TRUST

California  Tax-Exempt High-Yield Series,  California Tax-Exempt Quality Series,
         Florida Tax-Exempt Series and North Carolina Tax-Exempt Series
                   100 Park Avenue, New York, New York 10017
      Toll-Free Telephone: (800) 221-2450 -- All continental United States

NOTICE OF JOINT SPECIAL MEETING OF SHAREHOLDERS TO BE HELD ON SEPTEMBER 30, 1996
 
To the Shareholders:

     A Joint Special  Meeting of  Shareholders (the 'Meeting')  of Seligman  New
Jersey  Tax-Exempt  Fund, Inc.,  a  Maryland corporation,  Seligman Pennsylvania
Tax-Exempt Fund Series, a Pennsylvania business trust, Seligman Tax-Exempt  Fund
Series,  Inc., a  Maryland corporation and  Seligman Tax-Exempt  Series Trust, a
Massachusetts business trust (the 'Funds'), will  be held at the offices of  the
Funds,  100 Park Avenue, New York, New York  10017 on September 30, 1996 at 9:00
A.M., for the following purposes:
 
     (1) To elect thirteen Directors or Trustees, as applicable, for each Fund;
 
     (2) To act on a proposal to ratify  the selection of Deloitte & Touche  LLP
         as independent auditors of each Fund for fiscal 1996;
 
     (3) To  act on a  proposal to eliminate a  fundamental investment policy of
         each Fund or series of a Fund in order to permit the investment of  any
         portion  of net assets in securities subject to the federal alternative
         minimum tax; and
 
     (4) To transact  any  other business  that  may lawfully  come  before  the
         Meeting or any adjournment thereof;
 
all as set forth in the Proxy Statement accompanying this Notice.
 
     The  close of business on August 1, 1996  has been fixed as the record date
for the determination of shareholders entitled to notice of, and to vote at, the
Meeting or any adjournment thereof.
 
                                         By order of the Boards of Directors and
                                         Trustees,

                                            Frank J. Nasta
 
                                                               Secretary
 
Dated: New York, New York, August 12, 1996
                               ------------------
 
                             YOUR VOTE IS IMPORTANT
                       NO MATTER HOW MANY SHARES YOU OWN
 
PLEASE INDICATE YOUR VOTING  INSTRUCTIONS ON THE ENCLOSED  PROXY CARD, DATE  AND
   SIGN IT, AND RETURN IT IN THE ENVELOPE  PROVIDED,  WHICH IS ADDRESSED FOR
      YOUR  CONVENIENCE AND NEEDS NO POSTAGE IF MAILED IN THE UNITED STATES.
        IN ORDER TO AVOID THE  ADDITIONAL EXPENSE OF  FURTHER SOLICITATION,
          WE  ASK  YOUR COOPERATION IN MAILING YOUR PROXY PROMPTLY.  A
           PROXY WILL  NOT BE REQUIRED  FOR ADMISSION TO THE MEETING.


 

                                                                 August 12, 1996
 
                      SELIGMAN NEW JERSEY TAX-EXEMPT FUND, INC.
                     SELIGMAN PENNSYLVANIA TAX-EXEMPT FUND SERIES
                        SELIGMAN TAX-EXEMPT FUND SERIES, INC.

National  Tax-Exempt  Series,  Colorado  Tax-Exempt  Series,  Georgia Tax-Exempt
Series, Louisiana Tax-Exempt Series,  Maryland Tax-Exempt Series,  Massachusetts
Tax-Exempt  Series,  Michigan  Tax-Exempt Series,  Minnesota  Tax-Exempt Series,
Missouri Tax-Exempt Series, New York Tax-Exempt Series, Ohio Tax-Exempt  Series,
         Oregon Tax-Exempt Series and South Carolina Tax-Exempt Series

                               SELIGMAN TAX-EXEMPT SERIES TRUST

California  Tax-Exempt High-Yield Series,  California Tax-Exempt Quality Series,
         Florida Tax-Exempt Series and North Carolina Tax-Exempt Series
                   100 PARK AVENUE, NEW YORK, NEW YORK 10017

                                PROXY STATEMENT
                                    FOR THE
     JOINT SPECIAL MEETING OF SHAREHOLDERS TO BE HELD ON SEPTEMBER 30, 1996
 
     This  Proxy  Statement  is  furnished   to  you  in  connection  with   the
solicitation  of Proxies by the Boards of Directors and Trustees of Seligman New
Jersey Tax-Exempt  Fund, Inc.  (the 'New  Jersey Fund'),  Seligman  Pennsylvania
Tax-Exempt  Fund  Series  (the 'Pennsylvania  Fund'),  Seligman  Tax-Exempt Fund
Series, Inc. (the 'Tax-Exempt Fund')  and Seligman Tax-Exempt Series Trust  (the
'Tax-Exempt  Trust') (collectively, the 'Funds') to be used at the Joint Special
Meeting of Shareholders  (the 'Meeting') to  be held  in New York,  New York  on
September 30, 1996.
 
     The  Tax-Exempt Fund and the Tax-Exempt Trust each offer shares of separate
series, each of which is  a separate pool of  assets constituting, in effect,  a
separate  fund with  its own investment  objective and  policies. The Tax-Exempt
Fund offers the  Seligman National  Tax-Exempt Series and  the following  twelve
state  series: Seligman Colorado Tax-Exempt  Series, Seligman Georgia Tax-Exempt
Series, Seligman  Louisiana  Tax-Exempt  Series,  Seligman  Maryland  Tax-Exempt
Series,  Seligman Massachusetts Tax-Exempt  Series, Seligman Michigan Tax-Exempt
Series, Seligman  Minnesota  Tax-Exempt  Series,  Seligman  Missouri  Tax-Exempt
Series,  Seligman New York  Tax-Exempt Series, Seligman  Ohio Tax-Exempt Series,
Seligman Oregon Tax-Exempt Series and Seligman South Carolina Tax-Exempt Series.
The Tax-Exempt Trust offers the following four state series: Seligman California
Tax-Exempt High-Yield Series, Seligman California Tax-Exempt
 
                                       2
 

 

Quality Series, Seligman Florida Tax-Exempt  Series and Seligman North  Carolina
Tax-Exempt   Series  (the  National  Tax-Exempt  Series  and  all  state  series
collectively, the 'Series').
 
     If the accompanying form of Proxy is executed properly and returned, shares
represented by it will be voted at  the Meeting. If you give instructions,  your
shares  will  be voted  in accordance  with  your instructions.  If you  give no
instructions,  your  shares  will  be   voted,  on  behalf  of  the   respective
shareholders  of each Fund or Series, (i) for the election of thirteen Directors
or Trustees,  as applicable,  (ii)  for the  ratification  of the  selection  of
auditors,  (iii) for the elimination of a fundamental investment policy in order
to permit the investment of any portion  of net assets in securities subject  to
the  federal  alternative  minimum tax,  and,  at  the discretion  of  the Proxy
holders, on any other matter which may  properly come before the Meeting or  any
adjournment thereof. You may revoke your Proxy or change it by written notice to
the  Funds (Attention: the  Secretary) or by  notice at the  Meeting at any time
prior to the time it is voted.
 
     The close of business on August 1,  1996 has been fixed as the record  date
for the determination of shareholders entitled to notice of, and to vote at, the
Meeting.  On  that  date,  each  Fund or  Series  had  shares  of  Capital Stock
outstanding and entitled to vote as follows:
 


FUND OR SERIES                                               SHARES
- ------------------------------------------------------   ----------
 
                                                      
New Jersey Fund
Pennsylvania Fund
National Series
Colorado Series
Georgia Series
Louisiana Series
Maryland Series
Massachusetts Series
Michigan Series
Minnesota Series
Missouri Series
New York Series
Ohio Series
Oregon Series
South Carolina Series
California High-Yield Series
California Quality Series
Florida Series
North Carolina Series

 
     The Meeting  is  scheduled  as  a joint  meeting  of  shareholders  of  the
respective  Funds because the shareholders of all  the Funds are to consider and
vote on similar matters. In the event that any
 
                                       3
 

 

shareholder of a Fund present at the  Meeting objects to the holding of a  joint
meeting and moves for an adjournment of the Meeting with respect to such Fund to
a  time immediately after the  Meeting, so that the Meeting  of such Fund may be
held separately,  the  persons named  as  proxies will  vote  in favor  of  such
adjournment.
 
     Shareholders  of each Fund will vote separately on each proposal and on any
other matters that may arise for such Fund, and the vote of the shareholders  of
one  Fund  will not  affect  the vote  of the  shareholders  of any  other Fund.
Additionally, shareholders  of  each  Series  of the  Tax-Exempt  Fund  and  the
Tax-Exempt  Trust will vote separately with respect  to Proposal 3, and the vote
of the shareholders of one Series will  not affect the vote of the  shareholders
of any other Series of the same Fund.
 
     Each  share outstanding on the record date  will be entitled to one vote at
the Meeting. For any matter on which the vote of a 'majority of the  outstanding
voting  securities' of  a Fund  or Series is  required, an  abstention or broker
non-vote will have  the same  effect as  a vote  against the  proposal. For  all
matters  on  which the  affirmative  vote of  a majority  of  the votes  cast is
required and for the election of Directors or Trustees, an abstention or  broker
non-vote  will not be  considered a vote cast.  Abstentions and broker non-votes
will be counted for purposes of determining whether a quorum is represented and,
with respect  to Proposal  3,  whether a  'majority  of the  outstanding  voting
securities' is represented at the Meeting.
 
     A  quorum  for the  New  Jersey Fund  and  the Tax-Exempt  Fund  (or Series
thereof) will consist  of one-third of  the shares outstanding  and entitled  to
vote.  A quorum for the Pennsylvania Fund and the Tax-Exempt (or Series thereof)
Trust will consist of a majority of the shares outstanding and entitled to vote.
In the event  that a  quorum is not  represented at  the Meeting for  a Fund  or
Series  or, even  if a quorum  is so  represented, in the  event that sufficient
votes in favor of any proposal set forth in the Notice of Joint Special  Meeting
with  respect to a  Fund or Series are  not received by  September 30, 1996, the
persons named as proxies may  propose and vote for  one or more adjournments  of
the  Meeting with respect  to that Fund or  Series with no  other notice than an
announcement at the Meeting, and further solicitation of proxies with respect to
such proposal  may be  made. Shares  represented by  proxies indicating  a  vote
against any proposal will be voted against adjournment.
 
     The  Funds' investment adviser is J. &  W. Seligman & Co. Incorporated (the
'Manager'). The Funds' shareholder service agent is Seligman Data Corp. and  the
Funds'  distributor (principal underwriter) is Seligman Financial Services, Inc.
The address of each  of these entities  is 100 Park Avenue,  New York, New  York
10017.  The  Funds will  furnish, without  charge, copies  of their  most recent
annual reports  and  semi-annual reports  to  any shareholder  upon  request  to
Seligman Data Corp. at 1-800-221-2450.
 
     It  is expected that  the Notice of Joint  Special Meeting, Proxy Statement
and form of Proxy will  first be mailed to shareholders  on or about August  12,
1996.
 
                                       4
 

 

                     A. ELECTION OF DIRECTORS OR TRUSTEES.
                                  (Proposal 1)
 
     Each Fund's Board is presently comprised of thirteen Directors or Trustees.
At  the Meeting, these  Directors or Trustees, as  applicable, will be nominated
for election to hold office until the next meeting at which Director or  Trustee
elections  are  held or  until their  successors are  elected and  qualify. Each
nominee has been recommended by the Director or Trustee Nominating Committee  of
the Board of each Fund.
 
     It  is the intention of the persons named in the accompanying form of Proxy
to vote for  the election of  Fred E. Brown,  General John R.  Galvin, Alice  S.
Ilchman,  Frank A. McPherson, John E. Merow, Betsy S. Michel, William C. Morris,
James C. Pitney, James Q. Riordan, Ronald T. Schroeder, Robert L. Shafer,  James
N.  Whitson  and  Brian  T.  Zino,  all  of  whom  were  previously  elected  by
shareholders (except for General Galvin and Messrs. McPherson, Whitson and Zino)
and are presently members of each Board.
 
     Each nominee has agreed to serve if elected. There is no reason to  believe
that  any of the nominees will become  unavailable for election as a Director or
Trustee, but if that should occur before the Meeting, Proxies will be voted  for
the persons each Fund's Board nominates.
 


                                                                                     SHARES OF THE FUNDS'
                                 PRINCIPAL OCCUPATION AND OTHER INFORMATION             CAPITAL STOCK
     NOMINEE, YEAR         THE NOMINEES DESIGNATED BY ASTERISK (*) ARE 'INTERESTED       BENEFICIALLY
     FIRST BECAME A         PERSONS' OF EACH FUND (AS THAT TERM IS DEFINED IN THE     OWNED, DIRECTLY OR
 DIRECTOR OR TRUSTEE OF      INVESTMENT COMPANY ACT OF 1940, AS AMENDED) BECAUSE      INDIRECTLY, AS OF
  EACH FUND AND (AGE)                   OF THEIR STATED ASSOCIATIONS.                   JULY 26, 1996
                                                                               
- ------------------------  --------------------------------------------------------   -------------------
 
     Fred E. Brown*       DIRECTOR OR TRUSTEE, VARIOUS ORGANIZATIONS, NEW YORK, NY.    27,516 National
     1987 - NJ Fund       Mr.  Brown  is  a  Director or  Trustee  of  each  of the
     1986 - PA Fund       Seligman Group investment companies;`D' Director of,  and
   1983 - Tax-Ex Fund     Consultant  to,  J.  & W.  Seligman  &  Co. Incorporated;
  1984 - Tax-Ex Trust     Director  of  Seligman   Financial  Services,  Inc.   and
          (83)            Seligman  Services,  Inc.,  and  Trustee  of  Lake Placid
                          Education Foundation, Lake Placid Center for the Arts and
        [Photo]           Trudeau Institute, Inc.;  formerly, Director of  J. &  W.
                          Seligman Trust Company and Seligman Securities, Inc.

 
                                       5
 

 



                                                                                     SHARES OF THE FUNDS'
                                 PRINCIPAL OCCUPATION AND OTHER INFORMATION             CAPITAL STOCK
     NOMINEE, YEAR         THE NOMINEES DESIGNATED BY ASTERISK (*) ARE 'INTERESTED       BENEFICIALLY
     FIRST BECAME A         PERSONS' OF EACH FUND (AS THAT TERM IS DEFINED IN THE     OWNED, DIRECTLY OR
 DIRECTOR OR TRUSTEE OF      INVESTMENT COMPANY ACT OF 1940, AS AMENDED) BECAUSE      INDIRECTLY, AS OF
  EACH FUND AND (AGE)                   OF THEIR STATED ASSOCIATIONS.                   JULY 26, 1996
- ------------------------  --------------------------------------------------------   -------------------
                                                                               
     John R. Galvin       DEAN OF THE FLETCHER SCHOOL OF LAW AND DIPLOMACY AT TUFTS      132 National
    1995 - All Funds      UNIVERSITY,  MEDFORD, MA.  General Galvin  is Director or
                          Trustee  of  each  of   the  Seligman  Group   investment
          (67)            companies;`D'   Chairman  of  the   American  Council  on
                          Germany;  a   Governor  of   the  Center   for   Creative
        [Photo]           Leadership;  Director  of USLIFE,  National  Committee on
                          U.S. - China Relations,  National Defense University  and
                          the  Institute  for Defense  Analysis; and  Consultant of
                          Thomson CSF; formerly, Ambassador, U.S. State Department,
                          Distinguished Policy Analyst at Ohio State University and
                          Olin Distinguished Professor of National Security Studies
                          at the United States Military Academy. From June 1987  to
                          June  1992, he  was the Supreme  Allied Commander, Europe
                          and  the  Commander-in-Chief,   United  States   European
                          Command.
 
    Alice S. Ilchman      PRESIDENT,  SARAH LAWRENCE  COLLEGE, BRONXVILLE,  NY. Dr.         253 NY
    1991 - All Funds      Ilchman is a Director or Trustee of each of the  Seligman
          (61)            Group    investment   companies;`D'   Chairman   of   The
                          Rockefeller Foundation;  and Director  of NYNEX  and  The
        [Photo]           Committee  for Economic Development; formerly, Trustee of
                          The  Markle  Foundation  and  Director  of  International
                          Research & Exchange Board.

 
                                       6
 

 



                                                                                     SHARES OF THE FUNDS'
                                 PRINCIPAL OCCUPATION AND OTHER INFORMATION             CAPITAL STOCK
     NOMINEE, YEAR         THE NOMINEES DESIGNATED BY ASTERISK (*) ARE 'INTERESTED       BENEFICIALLY
     FIRST BECAME A         PERSONS' OF EACH FUND (AS THAT TERM IS DEFINED IN THE     OWNED, DIRECTLY OR
 DIRECTOR OR TRUSTEE OF      INVESTMENT COMPANY ACT OF 1940, AS AMENDED) BECAUSE      INDIRECTLY, AS OF
  EACH FUND AND (AGE)                   OF THEIR STATED ASSOCIATIONS.                   JULY 26, 1996
- ------------------------  --------------------------------------------------------   -------------------
                                                                               
   Frank A. McPherson     CHAIRMAN  OF  THE  BOARD  AND  CHIEF  EXECUTIVE  OFFICER,      133 National
    1995 - All Funds      KERR-MCGEE CORPORATION, OKLAHOMA CITY, OK. Mr.  McPherson
          (63)            is  a Director or  Trustee of each  of the Seligman Group
                          investment  companies;`D'   Director  of   Kimberly-Clark
        [Photo]           Corporation,  Bank of Oklahoma  Holding Company, American
                          Petroleum Institute, Oklahoma  City Chamber of  Commerce,
                          Baptist  Medical Center,  Oklahoma Chapter  of the Nature
                          Conservancy, Oklahoma  Medical  Research  Foundation  and
                          United  Way  Advisory  Board; Chairman  of  Oklahoma City
                          Public Schools  Foundation; and  Member of  The  Business
                          Roundtable and National Petroleum Council.
 
     John E. Merow*       PARTNER, SULLIVAN & CROMWELL, LAW FIRM, NEW YORK, NY. Mr.       221,835 NY
     1988 - NJ Fund       Merow  is a Director  or Trustee of  each of the Seligman      1,000 Cal-HY
     1986 - PA Fund       Group investment companies,`D'  Municipal Art Society  of        1,000 PA
   1983 - Tax-Ex Fund     New York, Commonwealth Aluminum Corporation, U.S. Council        1,000 NJ
  1984 - Tax-Ex Trust     for  International Business and U.S.-New Zealand Council;
          (66)            Member of the American Law  Institute and the Council  on
                          Foreign  Relations; Chairman  of the  American Australian
        [Photo]           Association; and Member of the Board of Governors of  the
                          Foreign Policy Association and New York Hospital.

 
                                       7
 

 



                                                                                     SHARES OF THE FUNDS'
                                 PRINCIPAL OCCUPATION AND OTHER INFORMATION             CAPITAL STOCK
     NOMINEE, YEAR         THE NOMINEES DESIGNATED BY ASTERISK (*) ARE 'INTERESTED       BENEFICIALLY
     FIRST BECAME A         PERSONS' OF EACH FUND (AS THAT TERM IS DEFINED IN THE     OWNED, DIRECTLY OR
 DIRECTOR OR TRUSTEE OF      INVESTMENT COMPANY ACT OF 1940, AS AMENDED) BECAUSE      INDIRECTLY, AS OF
  EACH FUND AND (AGE)                   OF THEIR STATED ASSOCIATIONS.                   JULY 26, 1996
- ------------------------  --------------------------------------------------------   -------------------
                                                                               
 
    Betsy S. Michel       ATTORNEY,  GLADSTONE, NJ.  Mrs. Michel  is a  Director or     3,221 National
     1988 - NJ Fund       Trustee  of  each  of   the  Seligman  Group   investment
     1986 - PA Fund       companies`D' and Chairman of the Board of Trustees of St.
 1984 - Tax-Ex Fund and   George's  School (Newport, RI);  and Trustee of Geraldine
      Tax-Ex Trust        R. Dodge Foundation (Morristown, NJ); formerly,  Director
          (54)            of   The  National  Association  of  Independent  Schools
                          (Washington, DC).
        [Photo]
 
   William C. Morris*     CHAIRMAN  AND  PRESIDENT  OF  J.  &  W.  SELIGMAN  &  CO.       142,012 NY
    1988 - All Funds      INCORPORATED,  NEW YORK,  NY. Mr. Morris  is Chairman and     1,037 National
          (58)            Chief Executive  Officer of  each of  the Seligman  Group
                          investment  companies;`D' Chairman  of Seligman Financial
        [Photo]           Services,  Inc.,  Seligman   Services,  Inc.  and   Carbo
                          Ceramics  Inc.; Member of  the Board of  Governors of the
                          Investment Company Institute; and Director of  Kerr-McGee
                          Corporation  and Seligman Data  Corp.; formerly, Chairman
                          of Seligman Securities, Inc. and  J. & W. Seligman  Trust
                          Company.

 
                                       8
 

 



                                                                                     SHARES OF THE FUNDS'
                                 PRINCIPAL OCCUPATION AND OTHER INFORMATION             CAPITAL STOCK
     NOMINEE, YEAR         THE NOMINEES DESIGNATED BY ASTERISK (*) ARE 'INTERESTED       BENEFICIALLY
     FIRST BECAME A         PERSONS' OF EACH FUND (AS THAT TERM IS DEFINED IN THE     OWNED, DIRECTLY OR
 DIRECTOR OR TRUSTEE OF      INVESTMENT COMPANY ACT OF 1940, AS AMENDED) BECAUSE      INDIRECTLY, AS OF
  EACH FUND AND (AGE)                   OF THEIR STATED ASSOCIATIONS.                   JULY 26, 1996
- ------------------------  --------------------------------------------------------   -------------------
                                                                               
 
    James C. Pitney       PARTNER,   PITNEY,  HARDIN,  KIPP   &  SZUCH,  LAW  FIRM,     8,102 National
     1988 - NJ Fund       MORRISTOWN, NJ. Mr.  Pitney is a  Director or Trustee  of
     1986 - PA Fund       each  of the  Seligman Group  investment companies`D' and
   1983 - Tax-Ex Fund     Public Service Enterprise Group.
  1984 - Tax-Ex Trust
          (69)
        [Photo]
 
    James Q. Riordan      DIRECTOR, VARIOUS CORPORATIONS,  STUART, FL. Mr.  Riordan     1,790 Florida
    1991 - All Funds      is  a Director or  Trustee of each  of the Seligman Group
          (69)            investment companies,`D' The Houston Exploration Company,
                          The Brooklyn Museum, The Brooklyn Union Gas Company,  The
        [Photo]           Committee for Economic Development, Dow Jones & Co., Inc.
                          and  Public Broadcasting Service; formerly Co-Chairman of
                          the Policy Council  of The Tax  Foundation; Director  and
                          President  of Bekaert Corporation; and Director of Tesoro
                          Petroleum Companies, Inc.

 
                                       9
 

 



                                                                                     SHARES OF THE FUNDS'
                                 PRINCIPAL OCCUPATION AND OTHER INFORMATION             CAPITAL STOCK
     NOMINEE, YEAR         THE NOMINEES DESIGNATED BY ASTERISK (*) ARE 'INTERESTED       BENEFICIALLY
     FIRST BECAME A         PERSONS' OF EACH FUND (AS THAT TERM IS DEFINED IN THE     OWNED, DIRECTLY OR
 DIRECTOR OR TRUSTEE OF      INVESTMENT COMPANY ACT OF 1940, AS AMENDED) BECAUSE      INDIRECTLY, AS OF
  EACH FUND AND (AGE)                   OF THEIR STATED ASSOCIATIONS.                   JULY 26, 1996
- ------------------------  --------------------------------------------------------   -------------------
                                                                               
  Ronald T. Schroeder*    DIRECTOR, MANAGING DIRECTOR AND CHIEF INVESTMENT OFFICER,       223,061 NY
     1987 - NJ Fund       INSTITUTIONAL OF J. & W. SELIGMAN & CO. INCORPORATED, NEW
     1986 - PA Fund       YORK, NY. Mr. Schroeder is a Director or Trustee of  each
   1983 - Tax-Ex Fund     of   the  Seligman  Group   investment  companies`D'  and
  1984 - Tax-Ex Trust     Director of Seligman  Financial Services, Inc.,  Seligman
          (48)            Services,  Inc.  and  Seligman  Henderson  Co.; formerly,
                          President  of  each  of  the  Seligman  Group  investment
        [Photo]           companies   with  the   exception  of   Seligman  Quality
                          Municipal Fund, Inc. and Seligman Select Municipal  Fund,
                          Inc.  and  Director of  J. &  W. Seligman  Trust Company,
                          Seligman Data Corp. and Seligman Securities, Inc.
 
    Robert L. Shafer      DIRECTOR, VARIOUS CORPORATIONS, NEW YORK, NY. Mr.  Shafer         500 NY
     1988 - NJ Fund       is  a Director or  Trustee of each  of the Seligman Group
     1986 - PA Fund       investment  companies`D'   and   US   LIFE   Corporation;
   1983 - Tax-Ex Fund     formerly, Vice President of Pfizer, Inc.
  1984 - Tax-Ex Trust
          (64)
        [Photo]

 
                                       10
 

 



                                                                                     SHARES OF THE FUNDS'
                                 PRINCIPAL OCCUPATION AND OTHER INFORMATION             CAPITAL STOCK
     NOMINEE, YEAR         THE NOMINEES DESIGNATED BY ASTERISK (*) ARE 'INTERESTED       BENEFICIALLY
     FIRST BECAME A         PERSONS' OF EACH FUND (AS THAT TERM IS DEFINED IN THE     OWNED, DIRECTLY OR
 DIRECTOR OR TRUSTEE OF      INVESTMENT COMPANY ACT OF 1940, AS AMENDED) BECAUSE      INDIRECTLY, AS OF
  EACH FUND AND (AGE)                   OF THEIR STATED ASSOCIATIONS.                   JULY 26, 1996
- ------------------------  --------------------------------------------------------   -------------------
                                                                               
 
    James N. Whitson      EXECUTIVE  VICE  PRESIDENT, CHIEF  OPERATING  OFFICER AND     1,238 National
    1993 - All Funds      DIRECTOR, SAMMONS  ENTERPRISES,  INC.,  DALLAS,  TX.  Mr.
          (61)            Whitson  is a Director or Trustee of each of the Seligman
                          Group investment companies,`D'  Red Man  Pipe and  Supply
        [Photo]           Company and C-SPAN.
 
     Brian T. Zino*       DIRECTOR  AND MANAGING DIRECTOR,  J. & W.  SELIGMAN & CO.   22,132 New Jersey
    1993 - All Funds      INCORPORATED, NEW YORK, NY.  Mr. Zino is President  (with
          (43)            the  exception of  Seligman Quality  Municipal Fund, Inc.
                          and Seligman Select Municipal Fund, Inc.) and Director or
        [Photo]           Trustee  of  each  of   the  Seligman  Group   investment
                          companies;`D'  Chairman of Seligman  Data Corp.; Director
                          of  Seligman  Financial   Services,  Inc.  and   Seligman
                          Services,  Inc.;  and Senior  Vice President  of Seligman
                          Henderson Co.; formerly, Director  and Secretary of  Chuo
                          Trust  --  JWS Advisors,  Inc. and  Director  of J.  & W.
                          Seligman Trust Company and Seligman Securities, Inc.

 
`D' The Seligman Group of investment  companies consists of the Funds,  Seligman
    Capital  Fund, Inc.,  Seligman Cash  Management Fund,  Inc., Seligman Common
    Stock Fund,  Inc.,  Seligman  Communications  and  Information  Fund,  Inc.,
    Seligman Frontier Fund, Inc., Seligman Growth Fund, Inc., Seligman Henderson
    Global  Fund Series, Inc., Seligman High Income Fund Series, Seligman Income
    Fund, Inc.,  Seligman Portfolios,  Inc.,  Seligman Quality  Municipal  Fund,
    Inc., Seligman Select Municipal Fund, Inc. and Tri-Continental Corporation.
 
     Unless  otherwise indicated,  Directors and  Trustees have  sole voting and
investment power with  respect to the  shares shown.  As of July  15, 1996,  all
Directors or Trustees, as applicable, and officers of each Fund as a group owned
beneficially    less   than   1%   of    each   Fund's   and   Series'   capital
 
                                       11
 

 

stock, with the  exception of the  New York  Tax-Exempt Series, for  which as  a
group all Directors beneficially own 5.41%.
 
     Each  Fund's Board met six times during 1995. Among the standing committees
of each Fund's Board are the Audit Committee and Director or Trustee  Nominating
Committee,  as applicable. These Committees are solely comprised of Directors or
Trustees who are not 'interested persons' of each Fund (as that term is  defined
in  the Investment Company Act of 1940, as amended (the '1940 Act')). The duties
of these Committees are described below.
 
     Audit  Committee.  This   Committee  recommends   the  independent   public
accountants  for selection  as auditors by  the Board annually.  In addition, it
reviews, with the  auditors and  such other persons  as it  determines, (a)  the
scope  of audit, (b) accounting and financial internal controls, (c) quality and
adequacy of the accounting staff and (d) reports of the auditors. The  Committee
comments  to the  Board when  warranted and  at least  annually. It  is directly
available to the auditors  and officers of the  Fund for consultation on  audit,
accounting  and related financial matters. The  Audit Committee of each Fund met
twice in  1995. Members  of  each Fund's  Audit  Committee are  Messrs.  Whitson
(Chairman) and McPherson, General Galvin and Mrs. Michel.
 
     Director  or Trustee Nominating Committee. This Committee recommends to the
Board persons  to  be  nominated  for election  as  Directors  or  Trustees,  as
applicable,  by the shareholders of each  Fund and selects and proposes nominees
for election  by the  Board  between shareholder  meetings. The  Committee  will
consider  suggestions from shareholders submitted in writing to the Secretary of
each Fund. The Director or Trustee  Nominating Committee of each Fund met  twice
in  1995. Members  of each Fund's  Director or Trustee  Nominating Committee are
Messrs. Pitney (Chairman), Riordan and Shafer and Dr. Ilchman.
 
     On July 15, 1996, no person was known  to the management of any Fund to  be
the  beneficial owner of more than 5% of the outstanding shares of any Fund's or
Series' capital stock.
 
                                       12
 

 

EXECUTIVE OFFICERS OF THE FUNDS
 
     Information with respect to executive officers of each of the Funds,  other
than Messrs. Morris and Zino, is as follows:
 


                                                                 POSITION WITH FUND AND
           NAME                 AGE                   PRINCIPAL OCCUPATION DURING PAST FIVE YEARS
                                  
- ----------------------------------------------------------------------------------------------------------------
Thomas G. Moles                 54      VICE  PRESIDENT AND  PORTFOLIO MANAGER  OF THE  FUNDS since  each Fund's
                                        inception. Mr. Moles is also President and Portfolio Manager of Seligman
                                        Quality Municipal Fund, Inc. and  Seligman Select Municipal Fund,  Inc.;
                                        Director  and  Managing  Director  of  the  Manager;  Director, Seligman
                                        Financial Services, Inc. and Seligman Services, Inc.; formerly, Director
                                        of Seligman Securities, Inc. and J. & W. Seligman Trust Company.
Lawrence P. Vogel               40      VICE PRESIDENT (FORMERLY,  TREASURER) OF THE  FUNDS since January  1992.
                                        Mr.  Vogel is also Vice President of the other Seligman Group investment
                                        companies; Senior  Vice  President,  Finance of  the  Manager,  Seligman
                                        Financial  Services, Inc. and Seligman Data Corp. (formerly, Treasurer);
                                        Vice President  of  Seligman  Services, Inc.;  and  Treasurer,  Seligman
                                        Henderson  Co.;  formerly, Senior  Vice  President, Finance  of Seligman
                                        Securities, Inc.  and Senior  Vice  President, J.  & W.  Seligman  Trust
                                        Company.
Frank J. Nasta                  31      SECRETARY  OF THE FUNDS since March 1994. Mr. Nasta is also Secretary of
                                        the Manager,  the other  Seligman Group  investment companies,  Seligman
                                        Data  Corp., Seligman Financial Services,  Inc., Seligman Services, Inc.
                                        and Seligman Henderson Co. and Senior Vice President, Law and Regulation
                                        of the Manager; formerly, Secretary, J. & W. Seligman Trust Company, and
                                        attorney at the law firm of Seward & Kissel.
Thomas G. Rose                  37      TREASURER OF THE FUNDS since November  1992. Mr. Rose is also  Treasurer
                                        of  the  other Seligman  Group  investment companies  and  Seligman Data
                                        Corp.; formerly, Treasurer, American Investors Advisors, Inc.

 
     All officers are  elected annually  by each  Fund's Board  and serve  until
their  successors  are elected  and qualify  or  their earlier  resignation. The
address of each  of the  foregoing officers  is 100  Park Avenue,  New York,  NY
10017.
 
REMUNERATION OF DIRECTORS OR TRUSTEES AND OFFICERS
 
     Directors or Trustees, as applicable, of each Fund who are not employees of
the  Manager or its affiliates  receive from each Fund  annual retainer fees. In
addition, Directors or Trustees are
 
                                       13
 

 

paid up to  $1,000 for  each day  on which  they attend  Board and/or  Committee
meetings,  which  is  paid  proportionately  by  the  Seligman  Group investment
companies meeting on the same day. The Directors or Trustees are also reimbursed
for the expenses of attending meetings.
 
     Directors' or Trustees' attendance, retainer and/or committee fees paid  to
each Director or Trustee for the year ended December 31, 1995 were as follows:
 


                                                                                                     PENSION OR
                                                  AGGREGATE        AGGREGATE        AGGREGATE        RETIREMENT         TOTAL
                                 AGGREGATE       COMPENSATION     COMPENSATION     COMPENSATION       BENEFITS       COMPENSATION
                                COMPENSATION         FROM             FROM             FROM          ACCRUED AS       FROM FUNDS
                                  FROM NEW       PENNSYLVANIA      TAX-EXEMPT       TAX-EXEMPT      PART OF FUND       AND FUND
NAME                            JERSEY FUND          FUND             FUND            TRUST           EXPENSES        COMPLEX**
- ----------------------------    ------------     ------------     ------------     ------------     ------------     ------------
 
                                                                                                   
John R. Galvin                   $ 1,515.88       $ 1,448.67       $ 3,520.16       $ 1,795.93         - 0 -          $41,252.75
Alice S. Ilchman                   2,497.12         2,388.88         5,725.28         2,948.20         - 0 -           68,000.00
Frank A. McPherson                 1,515.88         1,448.67         3,520.16         1,795.93         - 0 -           41,252.75
John E. Merow`D'                   2,425.70         2,317.46         5,653.84         2,876.76         - 0 -           66,000.00
Betsy S. Michel                    2,389.99         2,281.75         5,618.12         2,841.04         - 0 -           67,000.00
Douglas R. Nichols, Jr.*             909.82           868.79         2,133.68         1,080.83         - 0 -           24,747.25
James C. Pitney`D'                 2,497.12         2,388.88         5,725.28         2,948.20         - 0 -           68,000.00
James Q. Riordan                   2,497.12         2,388.88         5,725.28         2,948.20         - 0 -           70,000.00
Herman J. Schmidt*                   909.82           868.79         2,133.68         1,080.83         - 0 -           24,747.25
Robert L. Shafer                   2,497.12         2,388.88         5,725.28         2,948.20         - 0 -           70,000.00
James N. Whitson`D'                2,425.70         2,317.46         5,653.84         2,876.76         - 0 -           68,000.00

 
- ---------------------
 
 * Messrs. Nichols and Schmidt retired on May 18, 1995.
 
** There are 13 other investment companies in the Seligman Group.
 
 `D' Messrs.  Merow and Whitson have elected  to defer receiving their fees from
     the Funds. The total amounts of deferred compensation (including  interest)
     payable  to  Messrs. Merow  and Whitson  as  of December  31, 1995  were as
     follows:  Mr.  Merow:  NJ  Fund  --  $16,536.58,  PA  Fund  --  $19,406.32,
     Tax-Exempt  Fund  -- $73,539.58  and  Tax-Exempt Trust  --  $33,234.80; Mr.
     Whitson:  NJ  Fund   --  $6,718.06,  PA   Fund  --  $6,360.74,   Tax-Exempt
     Fund  --  $18,184.81  and Tax-Exempt  Trust  -- $8,128.51.  Mr.  Pitney had
     deferred receiving  his fee  and  has owing  to him  deferred  compensation
     (including   interest)   as   of   December  31,   1995   as   follows:  NJ
     Fund -- $9,009.79, PA Fund -- $12,605.56, Tax-Exempt Fund -- $55,325.04 and
     Tax-Exempt Trust --  $25,749.89. Mr.  Pitney no longer  defers his  current
     compensation.
 
     No  compensation  is  paid  by  any  Fund  to  Directors  or  Trustees,  as
applicable, or officers of any Fund who are employees of, or consultants to, the
Manager.
 
     For the New Jersey Fund and the Tax-Exempt Fund, the affirmative vote of  a
plurality  of the votes cast at the  Meeting is required to approve the election
of the proposed Directors. For the  Pennsylvania Fund and the Tax-Exempt  Trust,
the  affirmative vote of a majority of the votes cast at the Meeting is required
to approve the election of the proposed Trustees.
 
THE BOARD OF DIRECTORS  OR TRUSTEES OF EACH  FUND UNANIMOUSLY RECOMMENDS  THAT
  THE  SHAREHOLDERS VOTE FOR THE ELECTION  OF EACH OF THE FOREGOING NOMINEES
               TO SERVE AS   DIRECTOR OR TRUSTEE OF EACH FUND.
 
                                       14
 

 

                   B. RATIFICATION OF SELECTION OF AUDITORS.
                                  (Proposal 2)
 
     In accordance with the requirements of the 1940 Act, the Board of Directors
or Trustees of each Fund is required to select independent public accountants as
auditors of the Fund for each fiscal  year. If a shareholders' meeting is  held,
the Board's selection is subject to ratification or rejection by shareholders.
 
     The  Audit  Committee of  each Fund's  Board of  Directors or  Trustees, as
applicable, has recommended and each Fund's Board, including a majority of those
members who are not 'interested  persons' of each Fund  (as defined in the  1940
Act),  has selected Deloitte  & Touche LLP  as auditors of  each Fund for fiscal
1996. The firm of Deloitte &  Touche LLP has extensive experience in  investment
company  accounting  and  auditing.  It is  expected  that  a  representative of
Deloitte &  Touche  LLP  will be  present  at  the Meeting  and  will  have  the
opportunity to make a statement and respond to questions.
 
     For  each Fund, the affirmative vote of a majority of the votes cast at the
Meeting is required to ratify the selection of auditors.
 
     THE BOARD OF DIRECTORS OR TRUSTEES OF EACH FUND UNANIMOUSLY RECOMMENDS
                         RATIFICATION OF THIS PROPOSAL.
 
       C. APPROVAL OF THE ELIMINATION OF A FUNDAMENTAL INVESTMENT POLICY
  IN ORDER TO PERMIT THE INVESTMENT OF ANY PORTION OF NET ASSETS IN SECURITIES
                SUBJECT TO THE FEDERAL ALTERNATIVE MINIMUM TAX.
                                  (Proposal 3)
 
     Each of  the New  Jersey Fund,  the Pennsylvania  Fund and  the  individual
Series  of the Tax-Exempt Fund and  Tax-Exempt Trust currently operates under an
investment policy (the  '80% Policy')  that requires,  under normal  conditions,
each  Fund or Series to  invest at least 80%  of the value of  its net assets in
securities the interest on which is exempt from federal income taxes and, in the
case of each  Fund or Series  other than the  National Series, applicable  state
income  taxes. The 80% Policy is a  'fundamental' policy of each Fund or Series,
and cannot be eliminated or changed without  a vote of the shareholders of  such
Fund or Series.
 
     Prior  to the Tax Reform Act of 1986, securities of states, territories and
possessions of  the  United States  and  the  District of  Columbia,  and  their
political  subdivisions (such  as counties, cities,  boroughs, townships, school
districts  and  authorities),  agencies,  and  instrumentalities  (collectively,
'Municipal  Issuers') were generally tax exempt. The Tax Reform Act modified the
tax status  of  certain  municipal  obligations  to  create,  in  effect,  three
categories  of municipal obligations: 'public purpose' obligations that generate
interest that is  exempt from both  regular federal income  tax and the  federal
alternative minimum tax ('AMT'); qualified 'private activity'
 
                                       15
 

 

obligations (for example, industrial revenue bonds) that generate income that is
tax exempt under regular federal income tax rules but must generally be included
in computing AMT; and obligations that generate income that is fully taxable for
both  regular and AMT  purposes ('taxable municipals'). For  purposes of the 80%
Policy, private activity obligations and taxable municipals do not count  toward
meeting  the 80% minimum. Each Fund or  Series has a corollary investment policy
that no more than 20% of such Fund's or Series' assets will be invested in  tax-
exempt securities the interest on which is subject to the AMT.
 
     The  Manager  has recommended  to the  Board of  Directors or  Trustees, as
applicable, of  each  Fund that  each  Fund  and Series  change  its  investment
policies  so as to permit the Fund or Series to invest any portion of its assets
in securities of Municipal Issuers the interest on which is subject to the  AMT.
The  Manager believes  that this  change would  afford each  Fund or  Series the
opportunity to  obtain  potentially  higher  yields  available  from  securities
subject  to AMT and  the opportunity for  increased portfolio diversification by
enlarging the class of tax-exempt securities in which each Fund or Series  could
invest.  The change would also, however,  potentially increase the percentage of
income distributions  from each  Fund  or Series  to  its shareholders  that  is
subject  to the AMT. Such  an increase would potentially  increase the amount of
federal taxes payable by those shareholders of  a Fund or Series who are  liable
to  pay the AMT (and similar state taxes). Shareholders should consult their own
tax advisors to determine whether they are liable to pay the AMT.
 
     If shareholders of  a Fund or  Series approve this  Proposal, the Board  of
Directors or Trustees, as applicable, currently intends to adopt with respect to
each  such Fund or  Series, in place  of the 80%  Policy, a new, non-fundamental
policy under which the Fund or Series would normally invest at least 80% of  its
total  assets in debt securities  of Municipal Issuers the  interest on which is
exempt from regular  federal income  tax but  may be  subject to  AMT. This  new
policy  could be changed by  the Board of Directors or  Trustees of each Fund in
the future, without a shareholder vote.  In addition, if shareholders of a  Fund
or Series approve Proposal 3, the Board of Directors or Trustees, as applicable,
will  eliminate the  nonfundamental investment  policy of  each Fund  and Series
requiring that  no more  than  20% of  such Fund's  or  Series' assets  will  be
invested in tax-exempt securities the interest on which is subject to the AMT.
 
     The  Board  of  Directors  or  Trustees of  each  Fund  recommend  that the
shareholders of each Fund or Series  approve this Proposal with respect to  such
Fund  or Series. Approval of this Proposal with respect to a Fund or Series will
require  the  affirmative  'vote  of  a  majority  of  the  outstanding   voting
securities'  of such Fund or Series which, as defined by the 1940 Act, means the
vote of the lesser of (1) 67% or more of the voting shares of the Fund or Series
represented at the Meeting, if more than 50% of the shares of the Fund or Series
are represented at the Meeting, or (2)  more than 50% of the outstanding  shares
of such Fund or Series.
 
                                       16
 

 

     Consistent  with  the proposed  elimination  of the  fundamental investment
policy set forth in this  Proposal, the Board of  Directors or Trustees of  each
Fund  have  considered  and  deem  advisable an  amendment  to  the  Articles of
Incorporation or Declaration of Trust, as applicable, of each Fund to change its
name to eliminate the  words 'Tax-Exempt' and  substitute the word  'Municipal'.
The  Board of Directors of the Tax-Exempt Fund and Board of Trustees of the Tax-
Exempt Trust also have  considered and deem  advisable a change  in the name  of
each  individual Series  of such Funds  to eliminate the  words 'Tax-Exempt' and
substitute  the  word  'Municipal'.  If   this  Proposal  is  approved  by   the
shareholders  of each  Fund or Series,  the current  name of the  Funds and each
Series would  be inconsistent  with the  current position  of the  staff of  the
Securities and Exchange Commission. That position requires that if an investment
company's   name  implies   that  it   will  generate   income  to  shareholders
substantially all  of which  is free  from federal  income tax,  the  investment
company  must have an  investment policy requiring,  under normal circumstances,
that at least 80% of the net value of its total assets be invested in securities
that pay interest that is not subject to the AMT.. The Directors or Trustees  of
each  Fund also believe that  the current names would  be misleading in light of
the change in each Fund's or Series' fundamental investment policy.
 
     The vote of shareholders is not  required to effect these changes in  name,
and  they will  become effective  for each Fund  or Series  immediately upon the
adoption of this Proposal by the shareholders of such Fund or Series. The  Board
of  Directors or  Trustees of  each Fund  believes that  the proposed  names are
consistent with the  change in  fundamental investment policy  and would  enable
shareholders,  prospective investors and other  market participants more readily
to identify each Fund and Series with its current investment policies.
 
                THE BOARD OF DIRECTORS OR TRUSTEES OF EACH FUND
                     RECOMMENDS APPROVAL OF THIS PROPOSAL.
 
                    D. OTHER MATTERS; SHAREHOLDER PROPOSALS.
 
     Management knows of  no other matters  which are to  be brought before  the
Meeting.  However, if any other matters come  before the Meeting, it is intended
that the persons named in the enclosed form of Proxy, or their substitutes, will
vote the Proxy in accordance with their judgment on such matters.
 
     A shareholder proposal intended  to be presented  at any meeting  hereafter
called  must  be  received  by  a  Fund  within  a  reasonable  time  before the
solicitation relating thereto is made in order  to be included in the notice  of
meeting  and form of proxy statement related  to such meeting. Under the current
By-Laws of each Fund, meetings of shareholders are required to be held only when
necessary under the  1940 Act.  It is therefore  likely that,  in future  years,
shareholder
 
                                       17
 

 

meetings will not be held on an annual basis. The submission by a shareholder of
a  proposal for inclusion in the proxy statement does not guarantee that it will
be included.  Shareholder proposals  are subject  to certain  regulations  under
federal law.
 
                                  E. EXPENSES.
 
     Each  Fund will bear  the cost of  soliciting Proxies with  respect to that
Fund. In addition to the use of  the mails, Proxies may be solicited  personally
or  by telephone or telegraph by  Directors, Trustees, officers and employees of
the Funds, the  Manager, Seligman Financial  Services, Inc., Seligman  Services,
Inc.  and Seligman Data Corp. and the Funds may reimburse persons holding shares
in their  names  or  names of  their  nominees  for their  expenses  in  sending
solicitation  material to their principals. The Funds have engaged Morrow & Co.,
Inc., 909 Third Avenue, New York,  New York 10022-4799, to assist in  soliciting
Proxies  for a fee of  approximately $1,000 for the  New Jersey Fund, $1,000 for
the Pennsylvania  Fund, $20,000  for  the Tax-Exempt  Fund  and $3,000  for  the
Tax-Exempt Trust, plus expenses.
 
                                    By order of the Boards of Directors and
                                    Trustees,

 
                                            Frank J. Nasta

                                                                 Secretary
                             ---------------------
 
     IT  IS  IMPORTANT  THAT  PROXIES BE  RETURNED  PROMPTLY.  ALL SHAREHOLDERS,
INCLUDING THOSE WHO EXPECT TO  ATTEND THE MEETING, ARE  URGED TO DATE, FILL  IN,
SIGN  AND MAIL THE ENCLOSED FORM OF  PROXY IN THE ENCLOSED RETURN ENVELOPE WHICH
REQUIRES NO POSTAGE IF MAILED IN THE UNITED STATES. A PROXY IS NOT REQUIRED  FOR
ADMISSION TO THE MEETING.
 
                                       18



                    ---------------------------------------
 
                                                 Notice of Joint Special
                                                 Meeting of Shareholders
                                                   and Proxy Statement
 
                                                   SELIGMAN NEW JERSEY
                                                  TAX-EXEMPT FUND, INC.
                                                  
                                                 SELIGMAN PENNSYLVANIA
                                                 TAX-EXEMPT FUND SERIES
                                                   SELIGMAN TAX-EXEMPT
                                                    FUND SERIES, INC.

                                                   SELIGMAN TAX-EXEMPT
                                                      SERIES TRUST
 
                                          Time:
                                                    September 30, 1996
                                                    9:00 A.M.
 
                                          Place:
                                                    Offices of the Funds
                                                    100 Park Avenue
                                                    New York, NY 10017
                                            

                                  Please  date, fill  in and sign the enclosed
                                  form of  Proxy and  mail it  in the enclosed
                                  return  envelope  which  requires  no  post-
                                  age  if  mailed  in  the  United States.
 
                                   [Logo]
                               
      Managed by
       [Logo]
 
 J. & W. SELIGMAN & CO.
      INCORPORATED
    ESTABLISHED 1864
 100 Park Avenue, New York, NY 10017


                               STATEMENT OF DIFFERENCES
The dagger symbol shall be expressed as ..................'D'




                                APPENDIX
PROXY
              SELIGMAN PENNSYLVANIA TAX-EXEMPT FUND SERIES
                   100 Park Avenue, New York, NY 10017

The undersigned, revoking previous proxies, acknowledges receipt of the Notice
of Meeting and Proxy Statement for the Special Meeting of Shareholders of
SELIGMAN PENNSYLVANIA TAX-EXEMPT FUND SERIES, (the "Fund") to be held September
30, 1996 and appoints JOHN E. MEROW, WILLIAM C. MORRIS and BRIAN T. ZINO (and
each of them) proxies, with power of substitution, to attend the Special
Meeting (and any adjournments thereof) and vote all shares the undersigned is
entitled to vote upon the matters indicated below and on the reverse side and
on any other business that may properly come before the Meeting.

This proxy when properly executed will be voted in the manner directed by the
undersigned.  If no instructions are given, your proxies will vote FOR the
election of the nominees of the Board of Trustees and FOR all proposals.

- -------------------------------------------------------------------------------
The Board of Trustees recommends you vote FOR each of the Nominees and FOR all
Proposals
- -------------------------------------------------------------------------------

1. ELECTION OF TRUSTEES      [ ] FOR all nominees     [ ] WITHHOLDING AUTHORITY
                                 (except as written       TO VOTE for all 
                                 on line below)           nominees listed below.

   NOMINEES:  Fred E. Brown, John R. Galvin, Alice S. Ilchman, Frank A.
McPherson, John E. Merow, Betsy S. Michel, William C. Morris, James
C. Pitney, James Q. Riordan, Ronald T. Schroeder, Robert L. Shafer, James N. 
Whitson, Brian T. Zino.                    

_______________________________________________________________________
Your Vote is Important. Please complete, sign on the reverse side and 
return this card as soon as possible. Mark each vote with an X in the box.




2. Ratification of the selection of Deloitte & Touche LLP as Auditors.

   [ ] FOR    [ ] AGAINST    [ ] ABSTAIN     

3. Approval of the elimination of the Fund's fundamental investment policy
   in order to permit the investment of any portion of net assets in securities
   subject to the federal alternative minimum tax.

   [ ] FOR    [ ] AGAINST    [ ] ABSTAIN     
 
    
            DATED _____________________________________________________, 1996

            _________________________________________________________________
            Signature
            _________________________________________________________________
            Signature (if jointly held)

            Please sign exactly as your name(s) appear(s) on this proxy(ies).
            Only one signature is required in case of a joint account.  When 
            signing in a representative capacity, please give title.


            This Proxy is solicited on behalf of the Board of Trustees