==========================NOTES TO FINANCIAL
John Hancock Funds - Massachusetts Tax - Free Income Fund
CLASS ALLOCATIONS Income, common expenses and realized and unrealized gains (losses) are calculated
at the fund level and allocated daily to each class of shares based on the relative net assets of the respective
classes. Distribution and service fees, if any, are calculated daily at the class level based on the appropriate net
assets of each class and the specific expense rate(s) applicable to each class.
EXPENSES The majority of the expenses of the Trust are directly identifiable to an individual fund. Expenses
which are not readily identifiable to a specific fund are allocated in such a manner as deemed equitable, taking
into consideration, among other things, the nature and type of expense and relative sizes of the funds.
USE OF ESTIMATES The preparation of these financial statements in accordance with generally accepted
accounting principles incorporates estimates made by management in determining the reported amounts of assets,
liabilities, revenues and expenses of the Fund. Actual results could differ from these estimates.
BANK BORROWINGS The Fund is permitted to have bank borrowings for temporary or emergency
purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of
securities. The Fund has entered into a syndicated line of credit agreement with various banks. This agreement
enables the Fund to participate with other funds managed by the Adviser in unsecured lines of credit with banks
which permit borrowings up to $500 million, collectively. Interest is charged to each fund based on its
borrowings. In addition, a commitment fee is charged based on the average daily unused portion of the line of
credit and is allocated among the participating funds. The Fund had no borrowing activity for the period ended
February 29, 2000.
FINANCIAL FUTURES CONTRACTS The Fund may buy and sell financial futu