N-Q 1 cac.htm NQ~T. ROWE PRICE CALIFORNIA TAX-FREE INCOME TRUST T. Rowe Price California Tax-Free Income Trust
Item 1. Schedule of Investments     
 
T. Rowe Price California Tax-Free Bond Fund  
Unaudited  November 30, 2005 
PORTFOLIO OF INVESTMENTS (1) 
$ Par 
Value 
(Amounts in 000s)     

CALIFORNIA 95.0%     
 
Antioch PFA, 5.85%, 9/2/15  2,305  2,424 
Brea Redev. Agency, 6.00%, 3/1/22  1,215  1,253 
Burbank Glendale Pasadena Airport Auth.     
                     5.00%, 7/1/25 (AMBAC Insured) #  1,000  1,021 
California     
                     5.375%, 6/1/26 (Prerefunded 6/1/06†) (FGIC Insured)  615  628 
                     5.65%, 6/1/30 (Prerefunded 6/1/10†)  105  114 
               Economic Recovery     
                     VRDN (Currently 3.04%)  1,995  1,995 
                     5.25%, 7/1/13  4,625  5,073 
               Veterans Housing, 5.05%, 12/1/36 #  2,000  2,013 
California, GO     
                     5.00%, 3/1/17  500  531 
                     5.25%, 4/1/29  1,000  1,048 
                     5.375%, 6/1/26 (FGIC Insured)  475  484 
                     5.375%, 6/1/26 (Prerefunded 6/1/06†) (FGIC Insured) 410  418 
                     5.50%, 11/1/33  4,250  4,568 
                     5.65%, 6/1/30  395  423 
                     5.75%, 10/1/10  1,500  1,639 
               Kindergarten Univ. Public B1, VRDN (Currently 2.96%)  600  600 
California Dept. of Veteran Affairs, 5.50%, 12/1/19 #  2,625  2,747 
California Dept. of Water Resources     
                     7.00%, 12/1/11  1,265  1,493 
                     7.00%, 12/1/11 (Escrowed to Maturity)  465  550 
                     7.00%, 12/1/12  730  876 
                     7.00%, 12/1/12 (Escrowed to Maturity)  270  324 
               Power Supply     
                     5.25%, 5/1/09 (MBIA Insured)  3,000  3,183 
                     5.50%, 5/1/14 (AMBAC Insured)  3,750  4,148 
                     5.75%, 5/1/17  1,300  1,460 
California EFA     
               Loyola Marymount, Zero Coupon, 10/1/13     
                       (Prerefunded 10/1/09†) (MBIA Insured)  4,000  2,808 
               Santa Clara Univ., 5.00%, 9/1/23 (MBIA Insured)  1,000  1,081 
               Scripps College, 5.25%, 8/1/21  2,000  2,094 
               Univ. of Southern California, 5.50%, 10/1/27  3,545  3,793 
California HFA     
               Cedars-Sinai Medical Center     
                     5.00%, 11/15/16  350  369 
                     5.00%, 11/15/27  1,000  1,014 
                     6.125%, 12/1/19 (Prerefunded 12/1/09†)  2,000  2,219 
               Sutter Health, 6.25%, 8/15/31  2,000  2,222 
California Housing Fin. Agency, 6.70%, 8/1/15  806  809 
California Infrastructure & Economic Dev. Bank     
               Gladstone Institutes, 5.25%, 10/1/34  2,500  2,548 
               Kaiser Permanente, 5.55%, 8/1/31  2,500  2,608 
               Scripps Research Institute, 5.75%, 7/1/30  1,000  1,052 
California Muni Fin. Auth. IDRB, Waste Management     
                     4.10%, 9/1/14 (Tender 9/1/09) #  2,000  1,996 
California Pollution Control Fin. Auth.     
               Pacific Gas & Electric, 3.50%, 12/1/23     
                      (Tender 6/1/07) (FGIC Insured) #  2,000  1,996 
               Waste Management     
                     5.00%, 6/1/18 (Tender 6/1/08)  2,100  2,151 
                     5.10%, 6/1/18 (Tender 6/1/08) #  1,000  1,026 
                     5.125%, 11/1/23 #  3,000  3,036 
                     5.40%, 4/1/25 #  1,000  1,025 
California Public Works Board     
                     5.00%, 1/1/21  3,745  3,892 
                     5.25%, 3/1/21 (AMBAC Insured)  2,455  2,597 
               Butterfield, 5.00%, 6/1/17  1,000  1,051 
               Dept. of Corrections     
                     5.25%, 6/1/28  1,000  1,041 
                     5.50%, 6/1/23  2,000  2,143 
               Mental Health, 5.50%, 6/1/23  2,500  2,679 
               Mental Health, Coalinga, 5.125%, 6/1/29  250  256 
               Univ. of California Regents, 5.50%, 6/1/14  2,000  2,204 
California State Univ. Trustees     
                     5.50%, 11/1/16 (AMBAC Insured)  1,500  1,659 
California Statewide CDA     
               Chevron, VRDN (Currently 3.02%) #  500  500 
               Daughters of Charity Health     
                     5.25%, 7/1/24  1,760  1,811 
                     5.25%, 7/1/30  1,600  1,627 
                     5.25%, 7/1/35  2,000  2,026 
               Kaiser Permanente     
                     5.50%, 11/1/32  2,750  2,848 
               TECP, 2.70%, 12/8/05  1,500  1,500 
               Memorial Health Services, 6.00%, 10/1/23  2,000  2,197 
               Sutter Health, 5.50%, 8/15/28  1,430  1,494 
California Tobacco Securitization Agency     
Tobacco Gold Country Funding, 5.75%, 6/1/27  455  468 
Capistrano Unified School Dist. No. 90-2     
                     5.875%, 9/1/23  1,000  1,060 
                     6.00%, 9/1/32  1,250  1,312 
Capistrano Unified School Dist., Special Tax     
                   5.00%, 9/1/24 (FGIC Insured)  4,000  4,156 
Castaic Lake Water Agency     
                     7.00%, 8/1/12 (MBIA Insured)  1,000  1,190 
                     7.00%, 8/1/13 (MBIA Insured)  1,700  2,052 
Castaic Union School Dist., GO     
Zero Coupon, 5/1/18 (FGIC Insured)  4,175  2,315 
Chula Vista, Multi-Family Housing, 7.50%, 1/1/32 #  4,020  4,099 
Chula Vista Industrial Dev. PCR     
               San Diego Gas & Electric     
                     5.00%, 12/1/27  2,000  2,014 
                     5.50%, 12/1/21 #  3,000  3,162 
East Palo Alto Redev. Agency, Univ. Circle Gateway/101 Corridor     
                    6.625%, 10/1/29  1,500  1,592 
Folsom, Community Fac. Dist. #10, 5.875%, 9/1/28  1,000  1,038 
Foothill / Eastern Transportation Corridor Agency     
               Zero Coupon, 1/1/17 (Escrowed to Maturity)  2,000  1,236 
               STEP, 6.95%, 1/1/07 (Escrowed to Maturity)  1,000  1,040 
Golden Gate Bridge, Highway and Transportation Dist.     
               TECP, 2.70%, 12/6/05  1,300  1,300 
Golden State Tobacco Securitization Corp.     
               Tobacco Settlement     
                     5.00%, 6/1/45  1,500  1,491 
                     5.625%, 6/1/38 (Prerefunded 6/1/13†)  5,500  6,132 
Inland Empire Solid Waste Fin. Auth., 6.25%, 8/1/11     
               (Escrowed to Maturity) (FSA Insured) #  1,000  1,077 
Intermodal Container Transfer Fac., Long Beach Harbor     
                   5.75%, 11/1/14 (AMBAC Insured)  1,500  1,691 
Jefferson Union High School Dist., GO     
                     6.45%, 8/1/25 (MBIA Insured)  1,250  1,586 
                     6.45%, 8/1/29 (MBIA Insured)  1,000  1,287 
Kern County Union High School Dist., GO, 7.00%, 8/1/10     
               (Escrowed to Maturity) (MBIA Insured)  1,000  1,155 
Lincoln, Community Fac. Dist. No. 2003-1, 6.00%, 9/1/34  500  530 
Loma Linda, Univ. Medical Center, 5.00%, 12/1/22  1,000  1,017 
Long Beach Harbor     
                     VRDN (Currently 3.08%) #  1,000  1,000 
                     5.25%, 5/15/23 #  3,000  3,108 
                     5.50%, 5/15/16 (MBIA Insured) #  2,500  2,726 
                     6.00%, 5/15/17 (FGIC Insured) #  1,000  1,135 
               TECP, 2.87%, 2/9/06 #  700  700 
Los Angeles County Metropolitan Transportation Auth.     
                   6.00%, 7/1/26 (Prerefunded 7/1/06†) (MBIA Insured)  2,000  2,053 
Los Angeles County Public Works Fin. Auth., Rowland Heights     
                   5.50%, 10/1/18 (FSA Insured)  1,500  1,670 
Los Angeles County Sanitation Dist. Fin. Auth.     
                   5.00%, 10/1/23 (FGIC Insured)  1,715  1,805 
Los Angeles Harbor     
                     5.50%, 8/1/19 (AMBAC Insured) #  2,000  2,131 
                     7.60%, 10/1/18 (Escrowed to Maturity)  3,585  4,417 
Los Angeles Unified School Dist., 5.375%, 7/1/25     
               (Prerefunded 7/1/10†) (FGIC Insured)  1,500  1,628 
Los Angeles Unified School Dist., GO     
               VRDN (Currently 3.06%) (FSA Insured)  1,000  1,000 
Los Angeles Wastewater, 5.00%, 6/1/25 (FGIC Insured)  2,500  2,598 
Midpeninsula Regional Open Space Auth.     
                   5.90%, 9/1/14 (AMBAC Insured)  1,250  1,289 
Modesto Irrigation Dist., 6.00%, 10/1/15 (MBIA Insured)  1,500  1,564 
Mojave Water Agency Improvement Dist., GO     
                   5.75%, 9/1/15 (FGIC Insured)  2,000  2,077 
Newport Beach, Hoag Memorial Hosp., VRDN (Currently 2.94%)  300  300 
Orange County, COP     
                     5.875%, 7/1/19 (Prerefunded 7/1/06†) (MBIA Insured)  6,000  6,214 
                     6.00%, 7/1/26 (Prerefunded 7/1/06†) (MBIA Insured)  3,070  3,181 
Orange County Community Fac. Dist., Ladera Ranch     
                   6.00%, 8/15/32  1,000  1,111 
Orange County Sanitation Dist., VRDN (Currently 2.95%)     
               (AMBAC Insured)  200  200 
Pasadena, 6.25%, 1/1/18  2,740  3,130 
Placentia PFA, 5.75%, 9/1/15 (AMBAC Insured)  3,160  3,598 
Placentia-Yorba Linda Unified School Dist., GO     
                   5.375%, 8/1/18 (FGIC Insured)  1,000  1,088 
Pomona Unified School Dist., GO, 6.15%, 8/1/15 (MBIA Insured)  1,000  1,152 
Port of Oakland, 5.75%, 11/1/29 (FGIC Insured) #  5,000  5,309 
Poway Community Fac. Dist. No. 88-1, 6.75%, 8/15/15  800  868 
Riverside County Community College, 5.50%, 8/1/29     
               (Prerefunded 8/1/14†) (MBIA Insured)  3,215  3,620 
Riverside County Community College, GO     
                   5.50%, 8/1/29 (MBIA Insured)  35  38 
Riverside County PFA     
                     5.00%, 10/1/23 (XLCA Insured)  3,625  3,770 
                     5.625%, 10/1/33  995  1,023 
                     5.625%, 10/1/33 (Prerefunded 10/1/06†)  405  421 
Sacramento City Fin. Auth.     
                     5.00%, 12/1/26 (Prerefunded 6/1/11†) (AMBAC Insured)  2,000  2,146 
                     5.40%, 11/1/20  6,000  6,550 
Capital Improvement, 5.625%, 6/1/30 (Prerefunded 6/1/10†) 
1,350  1,489 
Sacramento Hotel, 6.25%, 1/1/30 
1,500  1,565 
Sacramento Municipal Utility Dist., 5.25%, 8/15/18 (FSA Insured)  4,155  4,491 
Saddleback Valley Unified School Dist. PFA, 6.00%, 9/1/15     
               (FSA Insured)  1,375  1,588 
San Francisco Bay Area Rapid Transit     
                     5.25%, 7/1/16 (AMBAC Insured)  280  301 
                     5.25%, 7/1/16 (Prerefunded 7/1/11†) (AMBAC Insured)  790  858 
                     5.25%, 7/1/18  495  521 
                     5.25%, 7/1/18 (Prerefunded 7/1/08†)  885  938 
San Francisco Bay Area Rapid Transit, GO, 5.00%, 8/1/26  1,720  1,803 
San Francisco City and County Redev., Mission Bay South     
                   5.15%, 8/1/35  1,200  1,174 
San Jose, El Parador Apartments, 6.10%, 1/1/31 #  1,735  1,816 
San Jose Fin. Auth., TECP, 2.60%, 12/1/05  2,000  2,000 
San Jose Redev. Agency, 5.00%, 8/1/17 (MBIA Insured)  2,500  2,672 
Santa Clara County Fin. Auth., 7.75%, 11/15/11     
               (AMBAC Insured)  1,000  1,215 
Santa Clara Redev. Agency, 7.00%, 7/1/10 (AMBAC Insured)  3,000  3,277 
Santa Clara Valley Transit Dist., 5.50%, 4/1/36     
               (Tender 10/2/06) (AMBAC Insured)  1,000  1,019 
Solano County, COP, 5.25%, 11/1/24 (MBIA Insured)  2,500  2,665 
South Orange County PFA, 7.00%, 9/1/07 (MBIA Insured)  2,000  2,125 
Southern California Public Power Auth.     
                     6.75%, 7/1/10  2,100  2,354 
                     6.75%, 7/1/12  1,700  1,963 
Sunnyvale, Solid Waste Management, 5.50%, 10/1/17     
               (AMBAC Insured) #  1,890  2,032 
Torrance, Torrance Memorial Medical Center, 6.00%, 6/1/22  500  545 
Tulare County Public Fac. Corp., 6.00%, 2/15/16     
               (Prerefunded 2/15/06†) (MBIA Insured)  1,000  1,026 
Univ. of California Regents, VRDN (Currently 3.06%)     
               (MBIA Insured)  200  200 
Vernon Electric     
Malburg Generating Station 
   
                     5.30%, 4/1/26 (Prerefunded 4/1/08†)  1,000  1,047 
                     5.50%, 4/1/33 (Prerefunded 4/1/08†)  1,500  1,577 
West Hollywood Community Dev., East Side Redev.     
                   5.75%, 9/1/33  1,000  1,037 
Whittier Health Fac., Presbyterian Intercommunity Hosp.     
                   5.60%, 6/1/22  2,500  2,646 
Total California (Cost $255,331)    268,949 
 
PUERTO RICO 3.3%     
 
Children's Trust Fund, 5.75%, 7/1/09 (Escrowed to Maturity)  2,000  2,154 
Puerto Rico Electric Power Auth., 5.00%, 7/1/08  3,000  3,090 
Puerto Rico Ind., Tourist, Ed., Medical & Environmental Fac. Ascension     
Health, 6.375%, 11/15/15  500  558 
Puerto Rico Infrastucture Fin. Auth., 5.50%, 10/1/20     
               (Escrowed to Maturity)  2,000  2,177 
Puerto Rico Public Fin. Corp., 5.50%, 8/1/29       
               (Prerefunded 2/1/12†)  1,120    1,226 
Total Puerto Rico (Cost $8,798)      9,205 
 
U. S. VIRGIN ISLANDS 1.0%       
 
Virgin Islands PFA       
5.00%, 10/1/11  1,000    1,059 
5.00%, 10/1/13  1,045    1,110 
               Hovensa Refinery, 5.875%, 7/1/22 #  500    538 
Total U. S. Virgin Islands (Cost $2,659)      2,707 
 
Total Investments in Securities       
99.3% of Net Assets (Cost $266,788)    $  280,861 

(1)  Denominated in U.S. dollars unless otherwise noted 
#  Interest subject to alternative minimum tax 
†  Used in determining portfolio maturity 
AMBAC  AMBAC Assurance Corp. 
CDA  Community Development Administration/Authority 
COP  Certificates of Participation 
EFA  Educational Facility Authority 
FGIC  Financial Guaranty Insurance Company 
FSA  Financial Security Assurance Inc. 
GO  General Obligation 
HFA  Health Facility Authority 
IDRB  Industrial Development Revenue Bond 
MBIA  MBIA Insurance Corp. 
PCR  Pollution Control Revenue 
PFA  Public Finance Authority 
STEP  Stepped coupon bond for which the coupon rate of interest will 
  adjust on specified future date(s) 
TECP  Tax-Exempt Commercial Paper 
VRDN  Variable-Rate Demand Note; rate shown is effective rate at period-end
XLCA  XL Capital Assurance Inc. 

The accompanying notes are an integral part of this Portfolio of Investments.











T. Rowe Price California Tax-Free Bond Fund  
Unaudited
November 30, 2005
NOTES TO PORTFOLIO OF INVESTMENTS  

NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES

T. Rowe Price California Tax-Free Income Trust (the trust) is registered under the Investment Company Act of 1940 (the 1940 Act). The California Tax-Free Bond Fund (the fund), a diversified, open-end management investment company, is one portfolio established by the trust. The fund seeks to provide the highest level of income exempt from federal and California state income taxes, consistent with prudent portfolio management, by investing primarily in investment-grade California municipal bonds.

The accompanying portfolio of investments was prepared in accordance with accounting principles generally accepted in the United States of America, which require the use of estimates made by fund management. Fund management believes that estimates and security valuations are appropriate; however actual results may differ from those estimates, and the security valuations reflected in the portfolio of investments may differ from the value the fund receives upon sale of the securities.

Valuation

The fund values its investments and computes its net asset value per share at the close of the New York Stock Exchange (NYSE), normally 4 p.m. ET, each day that the NYSE is open for business. Debt securities are generally traded in the over-the-counter market. Securities are valued at prices furnished by dealers who make markets in such securities or by an independent pricing service, which considers yield or price of bonds of comparable quality, coupon, maturity, and type, as well as prices quoted by dealers who make markets in such securities.

Other investments and those for which the above valuation procedures are inappropriate or are deemed not to reflect fair value are stated at fair value as determined in good faith by the T. Rowe Price Valuation Committee, established by the fund’s Board of Trustees.

Investment Transactions Investment transactions are accounted for on the trade date.

NOTE 2 - FEDERAL INCOME TAXES

At November 30, 2005, the cost of investments for federal income tax purposes was $266,621,000. Net unrealized gain aggregated $14,240,000 at period-end, of which $14,725,000 related to appreciated investments and $485,000 related to depreciated investments.














T. Rowe Price California Tax-Free Money Fund    
Unaudited  November 30, 2005 
PORTFOLIO OF INVESTMENTS (1) 
$ Par 
Value 
(Amounts in 000s)     

CALIFORNIA 103.4%     
 
ABAG Fin. Auth. for Nonprofit Corp.     
     Point Loma Nazarene Univ., VRDN (Currently 3.12%)  1,500  1,500 
     Young Men's Christian Assoc. of San Francisco YMCA     
                   VRDN (Currently 3.02%)  3,795  3,795 
     The Urban School of San Francisco, VRDN (Currently 3.02%)  1,300  1,300 
Affordable Housing Agency, Westridge Hilltop     
                   VRDN (Currently 3.02%)  1,450  1,450 
California, Economic Recovery     
                   VRDN (Currently 2.95%) (XLCA Insured)  1,000  1,000 
California, GO     
                   VRDN (Currently 3.06%) (AMBAC Insured)  2,000  2,000 
                   VRDN (Currently 3.07%) (Tender 1/18/06)  2,500  2,500 
               RAN, 4.50%, 6/30/06  5,000  5,042 
California Dept. of Water Resources     
     Power Supply     
                   VRDN (Currently 3.06%) (AMBAC Insured)  4,395  4,395 
                   VRDN (Currently 3.17%) (Tender 2/16/06)  2,000  2,000 
                   VRDN (Currently 3.20%) (Tender 1/12/06)  3,000  3,000 
California EFA     
     Stanford Univ. VRDN (Currently 3.04%)  3,000  3,000 
     Univ. of San Francisco, VRDN (Currently 2.96%)  2,410  2,410 
California HFA     
     Adventist Health/West     
                   VRDN (Currently 2.95%) (MBIA Insured)  1,265  1,265 
     Northern California Presbyterian Homes & Services     
                   VRDN (Currently 2.97%)  3,945  3,945 
     Scripps Health, VRDN (Currently 2.98%)  2,260  2,260 
     Sutter Health, VRDN (Currently 2.95%) (AMBAC Insured)  500  500 
California Housing Fin. Agency     
     Home Mortgage Program     
                   VRDN (Currently 3.00%) #  2,975  2,975 
                   VRDN (Currently 3.11%) #  2,100  2,100 
California Infrastructure & Economic Dev. Bank     
Salvation Army West, TECP, 2.85%, 5/3/06  3,000  3,000 
California Statewide CDA     
     ChevronTexaco, VRDN (Currently 2.94%)  300  300 
     Kaiser Permanente     
                   VRDN (Currently 2.97%)  6,750  6,750 
     TECP, 2.70%, 12/8/05  1,900  1,900 
Elsinore Valley Municipal Water Dist.     
                   VRDN (Currently 2.93%) (FGIC Insured)  2,000  2,000 
Golden Gate Bridge, Highway & Transportation Dist., TECP     
                   2.70, 12/6/05  2,000  2,000 
                   3.05%, 2/9/06  3,000  3,000 
Grand Terrace Community Redev. Agency     
Mount Vernon Villas Multi-Family, VRDN (Currently 2.96%)  3,095  3,095 
Long Beach Harbor     
                   VRDN (Currently 3.08%) #  1,000  1,000 
                   3.50%, 5/15/06 #  1,000  1,001 
                   4.00%, 5/15/06 (MBIA Insured) #  2,000  2,010 
                   5.50%, 5/15/06 (FGIC Insured) #  600  606 
     TECP, 2.87, 2/9/06 #  2,300  2,300 
     TECP, 3.05%, 2/9/06 #  1,000  1,000 
Los Angeles, GO, VRDN (Currently 3.06%) (FGIC Insured)  1,060  1,060 
Los Angeles Airport, TECP, 2.78%, 12/2/05 #  5,000  5,000 
Los Angeles Community Redev. Agency     
     Lard Security Building, VRDN (Currently 3.02%) #  2,000  2,000 
     Promenade Towers, VRDN (Currently 3.02%)  2,150  2,150 
Los Angeles County, GO, TRAN, 4.00%, 6/30/06  2,000  2,011 
Los Angeles Dept. of Water & Power     
                   VRDN (Currently 3.01%)  300  300 
Los Angeles Municipal Improvement Corp., TECP     
                   2.85%, 2/8/06  3,000  3,000 
Los Angeles Unified School Dist., GO     
                   VRDN (Currently 3.06%) (FSA Insured)  2,100  2,100 
Orange County Sanitation Dist.     
                   VRDN (Currently 2.97%) (AMBAC Insured)  1,850  1,850 
Port of Oakland, VRDN (Currently 3.08%) (FGIC Insured) #  2,000  2,000 
San Diego County Water Auth., TECP, 2.85%, 2/8/06  2,000  2,000 
San Francisco Public Utilities Commission, TECP     
                   3.00%, 2/8/06  2,000  2,000 
San Jose Fin. Auth., TECP, 2.82%, 2/1/06  2,443  2,443 
Santa Maria Joint Union High School Dist.     
                   VRDN (Currently 3.02%)  1,385  1,385 
Univ. of California Regents     
                   VRDN (Currently 3.06%) (MBIA Insured)  1,700  1,700 
                   TECP, 2.80%, 2/2/06 
2,960  2,960 

Total California (Cost $110,358)      110,358 
 
PUERTO RICO 0.9%       
Puerto Rico Electric Power Auth.       
                   VRDN (Currently 3.07%) (FGIC Insured) 
1,000
   1,000 
Total Puerto Rico (Cost $1,000)      1,000 
 
Total Investments in Securities       
104.3% of Net Assets (Cost $111,358)    $  111,358 

(1)  Denominated in U.S. dollars unless otherwise noted 
#  Interest subject to alternative minimum tax 
AMBAC  AMBAC Assurance Corp. 
CDA  Community Development Administration/Authority 
EFA  Educational Facility Authority 
FGIC  Financial Guaranty Insurance Company 
FSA  Financial Security Assurance Inc. 
GO  General Obligation 
HFA  Health Facility Authority 
MBIA  MBIA Insurance Corp. 
RAN  Revenue Anticipation Note 
TECP  Tax-Exempt Commercial Paper 
TRAN  Tax Revenue Anticipation Note 
VRDN  Variable-Rate Demand Note; rate shown is effective rate at period-end 
XLCA  XL Capital Assurance Inc. 

The accompanying notes are an integral part of this Portfolio of Investments.







T. Rowe Price California Tax-Free Money Fund   
Unaudited 
November 30, 2005 
NOTES TO PORTFOLIO OF INVESTMENTS  

NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES

T. Rowe Price California Tax-Free Income Trust (the trust) is registered under the Investment Company Act of 1940 (the 1940 Act). The California Tax-Free Money Fund (the fund), a diversified, open-end management investment company, is one portfolio established by the trust. The fund seeks to provide preservation of capital, liquidity, and, consistent with these objectives, the highest level of income exempt from federal and California state income taxes.

The accompanying portfolio of investments was prepared in accordance with accounting principles generally accepted in the United States of America, which require the use of estimates made by fund management. Fund management believes that estimates and security valuations are appropriate; however actual results may differ from those estimates, and the security valuations reflected in the portfolio of investments may differ from the value the fund receives upon sale of the securities.

Valuation

Securities are valued at amortized cost. Assets and liabilities for which such valuation procedures are deemed not to reflect fair value are stated at fair value as determined in good faith by the T. Rowe Price Valuation Committee, established by the fund’s Board of Trustees.

Investment Transactions

Investment transactions are accounted for on the trade date.

NOTE 2 - FEDERAL INCOME TAXES

At November 30, 2005, the cost of investments for federal income tax purposes was $111,358,000.








Item 2. Controls and Procedures.

(a) The registrant’s principal executive officer and principal financial officer have evaluated 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, as of that date, in ensuring that information required to be disclosed by the registrant in this Form N-Q was recorded, processed, summarized, and reported timely.

(b) The registrant’s principal executive officer and principal financial officer are aware of no change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

Separate certifications by the registrant's principal executive officer and principal financial officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and required by Rule 30a-2(a) under the Investment Company Act of 1940, are attached.








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.

T. Rowe Price California Tax-Free Income Trust 
 
 
By  /s/ James S. Riepe 
  James S. Riepe 
  Principal Executive Officer 
 
Date  January 24, 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  /s/ James S. Riepe 
  James S. Riepe 
  Principal Executive Officer 
 
Date  January 24, 2006 
 
 
 
By  /s/ Joseph A. Carrier 
                          Joseph A. Carrier
  Principal Financial Officer 
 
Date  January 24, 2006