October 12, 1982

This is in reply to your letter dated September 29, 1982, requesting rulings with respect to the Massachusetts income tax consequences ********** of ********** Unit Trusts - Series [F-X] (the "New York Trusts").

This office has issued rulings regarding the Massachusetts income tax consequences of ********** Massachusetts municipal bond funds, ********** Unit Trusts - Series [A-X] (the "Series [A-X] Trusts"), which have been sponsored by your client, ********** ("Sponsor"). The first of these rulings was issued in 1977, and on September 24 1982, this office issued a ruling regarding ********** Unit Trust - Series [X].

Each of the Series [A-X] Trusts has been organized and certificates therein have been sold to the public. Sponsor intends to make certain changes, described below, in the organization, principal place of business and operation of the New York Trusts.

Each of the Series [A-X] Trusts has been organized to hold bonds the interest on which is exempt from federal and Massachusetts personal income taxes. The Series [A-X] Trusts have invested primarily in bonds of the Commonwealth of Massachusetts, its political subdivisions and their agencies and instrumentalities. However, bonds issued by the Government of Puerto Rico or by its authority also have been included.

None of the Trustees of the Series [A-X] Trusts have or will have authority to vary the original portfolio of investments purchased by the Trusts. Accordingly, under Section 301.7701-4(c) of the U.S. Treasury Regulations, the Series [A-X] Trusts are treated as trusts for federal income tax purposes and not treated as "associations" taxable as corporations. Moreover, because each holder of a certificate representing an interest in a fund (a "Certificateholder") has the right at any time to revoke his interest in such Trust by having his certificate redeemed, the Series [A-X] Trusts are treated for federal income tax purposes as "grantor trusts" under Section 676(a) of the U.S. Internal Revenue Code of 1954, as amended.

Each of the Series [A-X] Trusts is organized in the form of a unit investment trust. Beneficial interests or shares in the Series [A-X] Trusts are represented by transferable certificates. Such certificates have been offered and sold primarily to residents of Massachusetts. However, there is no requirement that Certificateholders be residents of Massachusetts.

Subject to certain conditions, Certificateholders in the Series [A-X] Trusts are afforded the opportunity to automatically reinvest principal and income distributions in units of other Massachusetts Tax Exempt Unit Trusts established by Sponsor.

Beginning with ********** Unit Trust - Series [M], the funds have been permitted to invest up to, but not more than, 10% of their total assets in shares of one or more series of Massachusetts Tax Exempt Unit Trusts previously established and sponsored by Sponsor (the "Previous Trusts").

The first five of the funds, ********** Unit Trusts - Series [A-E] (the "Massachusetts Trusts") were and will continue to be established under the laws of the Commonwealth of Massachusetts. The trustee of the Massachusetts Trusts is ********** [a Massachusetts [bank]. The principal place of business of the Massachusetts Trusts has been and will continue to be in the Commonwealth of Massachusetts.

The New York Trusts currently are established under the laws of the Commonwealth of Massachusetts. The Trustee of each of these Trusts is a Massachusetts bank ********** and the principal place of business of each of these Trusts is in the Commonwealth of Massachusetts.

The proposed changes in the organization, principal place of business and operations of the New York Trusts are:

1. An amendment relating to each of the trust agreements pursuant to which the New York Trusts are established will provide that such Trusts will be re-established under the laws of the State of New York, and will cease to be established under the laws of the Commonwealth of Massachusetts;

2. The [Massachusetts bank] ********** will resign as the Trustee of each of the New York Trusts and a New York corporation ********** will become the Trustee of each of the New York Trusts; and

3. The principal place of business of each of the New York Trusts will be in the City of New York.

The amendment reflecting these changes will be executed and delivered in New York. After these changes, (i) all of the business of the New York Trusts will be conducted in the City of New York, (ii) each of their assets will be located in the City of New York, (iii) any distributions to any of their Certificateholders will be made from the City of New York, and (iv) none of the New York Trusts will have an office in the Commonwealth of Massachusetts.

Based on the foregoing, it is ruled that:

1. For Massachusetts personal income tax purposes, the New York Trusts will be treated as corporate trusts under Section 8 of Chapter 62 of the Massachusetts General Laws and not as grantor trusts under Section 10(e) of Chapter 62 of the Massachusetts General Laws.

2. The proposed activities of the New York Trusts will not constitute doing business in the Commonwealth of Massachusetts within the meaning of Section 8 of Chapter 62 of the Massachusetts General Laws; therefore the New York Trusts will not be subject to Massachusetts income taxation under Chapter 62 of the Massachusetts General Laws.

3. Each Certificateholder of a New York Trust who is subject to Massachusetts income taxation under Chapter 62 of the Massachusetts General Laws will be required to include in his Massachusetts gross income as capital gains or capital losses all capital gains and capital losses includible in his federal gross income as a result of his ownership of an interest in such New York Trust except (a) capital gains or capital losses realized by a Massachusetts Trust, which capital gains or capital losses will be included in the Massachusetts gross income of such Massachusetts Trust and (b) capital gains and capital losses on the sale or exchange of any bond of the Commonwealth of Massachusetts and its political subdivisions, their agencies and instrumentalities, if such capital gains or capital losses are specifically exempted from taxation in Massachusetts by the act authorizing the issuance of the bonds.

4. Interest received by any New York Trust or any Previous Trust on bonds of the Commonwealth of Massachusetts and its political subdivisions, their agencies and instrumentalities, and on bonds issued by the Government of Puerto Rico or by its authority will not be includible in the Massachusetts gross income of any of such Trusts or their Certificateholders.

5. Certificateholders of the New York Trusts who are subject to Massachusetts personal income taxation under Chapter 62 of the Massachusetts General Laws will not be required to include in their Massachusetts gross income distributions by or received from any New York Trust or Previous Trust.

6. Except as described above, Certificateholders of the New York Trust who are subject to Massachusetts personal income taxation under Chapter 62 of the Massachusetts General Laws will not be required to include any amount in their Massachusetts gross income as a result of (a) the amendment to the trust agreements of the New York Trusts providing for the re-establishment of such Trusts under the laws of the State of New York, (b) the change of Trustee of such Trusts, (c) the transfer of the assets of such Trusts from the Commonwealth of Massachusetts to the City of New York, or (d) the change of the principal place of business of such Trusts from the Commonwealth of Massachusetts to the City of New York.

Very truly yours,

/s/L. Joyce Hampers

L. Joyce Hampers
Commissioner of Revenue

LJH:MTD:mf
LR 82-92