Edgar Filing: BLACKROCK MUNICIPAL INCOME TRUST

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number 811-10339

Name of Fund: BlackRock Municipal Income Trust (BFK)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Donald C. Burke, Chief Executive Officer, BlackRock Municipal Income Trust,
800 Scudders Mill Road, Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011, Princeton, NJ, 08543-9011

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 10/31/2008

Date of reporting period: 11/01/2007 – 10/31/2008

Item 1 – Report to Stockholders


EQUITIES		FIXED INCOME		REAL ESTATE		LIQUIDITY		ALTERNATIVES		BLACKROCK SOLUTIONS



	Annual Report





	OCTOBER 31, 2008

BlackRock Investment Quality Municipal Trust Inc. (BKN)

BlackRock Municipal Income Trust (BFK)

BlackRock Long-Term Municipal Advantage Trust (BTA)

NOT FDIC INSURED

MAY LOSE VALUE

NO BANK GUARANTEE




Table of Contents

		Page
A Letter to Shareholders		3
Annual Report:
Trust Summaries		4
The Benefits and Risks of Leveraging		7
Derivative Instruments		7
Financial Statements:
Schedules of Investments		8
Statements of Assets and Liabilities		19
Statements of Operations		20
Statements of Changes in Net Assets		21
Statement of Cash Flows		22
Financial Highlights		23
Notes to Financial Statements		26
Report of Independent Registered Public Accounting Firm		32
Important Tax Information		33
Disclosure of Investment Advisory Agreement and Subadvisory Agreement		34
Automatic Dividend Reinvestment Plans		37
Officers and Directors		38
Additional Information		42



2	ANNUAL REPORT	OCTOBER 31, 2008

A Letter to Shareholders

Dear Shareholder

It has been a tumultuous period for investors, marked by almost daily headlines of deepening turmoil in financial markets and a darkening economic outlook. The news took an extraordinarily heavy tone late in the period as the credit crisis boiled over and triggered unprecedented failures and consolidation in the financial sector, stoking fears of a market and economic collapse and prompting a series of new government programs designed to contain and combat the fallout.

The Federal Reserve Board (the “Fed”) has taken decisive measures to restore liquidity and stabilize the financial system. Key moves included slashing the target federal funds rate 250 basis points (2.50%) between November 2007 and April 2008 and providing massive cash injections and lending programs. In October, as credit conditions further deteriorated, the central bank cut the key interest rate by 50 basis points on two separate occasions—on October 8 in coordination with five other global central banks, and again during its regularly scheduled meeting on October 29. This left the key short-term rate at just 1.0%, its lowest level since 2004. While the U.S. economy appeared fairly resilient through the second quarter of 2008, the third quarter saw a contraction of 0.5%, and a more significant decline is expected for the fourth quarter. Moreover, on December 1, the National Bureau of Economic Research confirmed that the U.S. had entered a recession in December 2007.

Against this backdrop, U.S. equity markets experienced intense volatility, with periods of downward pressure punctuated by sharp rebounds. Losses were significant and broad-based, though small-cap stocks fared moderately better than their larger counterparts. Non-U.S. markets decelerated at a considerably faster pace than domestic equities—a stark reversal of recent years’ trends, when international stocks generally outpaced U.S. stocks.

Treasury issues also traded in a volatile fashion, but rallied overall (yields fell and prices correspondingly rose) and outperformed other fixed income assets as investors continued their flight to higher quality and more liquid securities. Tax-exempt issues generally underperformed, as problems among municipal bond insurers and the collapse in the market for auction rate securities afflicted the group throughout the course of the past year. At the same time, the above mentioned economic headwinds and malfunctioning credit markets plagued the high yield sector, with the third quarter of 2008 marking one of the worst periods in history for the asset class.

Facing unprecedented volatility and macro pressures, the major benchmark indexes generally recorded losses for the six- and 12-month reporting periods:


Total Returns as of October 31, 2008	6-month		12-month

U.S. equities (S&P 500 Index)	(29.28	)%	(36.10	)%

Small cap U.S. equities (Russell 2000 Index)	(24.39	)	(34.16	)

International equities (MSCI Europe, Australasia, Far East Index)	(41.21	)	(46.62	)

Fixed income (Barclays Capital U.S. Aggregate Index*)	(3.63	)	0.30

Tax-exempt fixed income (Barclays Capital Municipal Bond Index*)	(4.70	)	(3.30	)

High yield bonds (Barclays Capital U.S. Corporate High Yield 2% Issuer Capped Index*)	(24.86	)	(25.41	)


*Formerly a Lehman Brothers Index. Past performance is no guarantee of future results. Index performance shown is for illustrative purposes only. You cannot invest directly in an index.

Through periods of market turbulence, as ever, BlackRock’s full resources are dedicated to the management of our clients’ assets. For our most current views on the economy and financial markets, we invite you to visit www.blackrock.com/funds. As always, we thank you for entrusting BlackRock with your investments, and we look forward to continuing to serve you in the months and years ahead.

Sincerely,

-s- Rob Kapito

Rob Kapito
President, BlackRock Advisors, LLC



	THIS PAGE NOT PART OF YOUR FUND REPORT		3




Trust Summary as of October 31, 2008	BlackRock Investment Quality Municipal Trust


Investment Objective

	BlackRock Investment Quality Municipal Trust (BKN) (the “Trust”) seeks is to provide high current income which, in the opinion of bond counsel to the issuer, is exempt from regular federal income tax consistent with the preservation of capital.

Performance

	For the 12 months ended October 31, 2008, the Trust returned (33.11)% based on market price and (22.93)% based on net asset value (“NAV”). For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of (19.05)% on a NAV basis. All returns reflect reinvestment of dividends. The Trust moved from a premium to NAV to a discount by period-end, which accounts for the difference between performance based on price and performance based on NAV. Trust performance was positively impacted by its above-average distribution rate and its more neutral duration positioning at the beginning of the period. Trust performance was negatively affected by longer-dated holdings, which proved volatile as risk spreads increased and the municipal yield curve steepened. The Trust’s overweight exposure to lower-quality and national names also detracted from performance as liquidity concerns rattled the markets.

	The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

Trust Information


Symbol on New York Stock Exchange		BKN
Initial Offering Date		February 19, 1993
Yield on Closing Market Price as of October 31, 2008 ($10.25)¹		7.38%
Tax Equivalent Yield²		11.35%
Current Monthly Distribution per Common Share³		$0.063
Current Annualized Distribution per Common Share³		$0.756
Leverage as of October 31, 2008⁴		43%


1	Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2	Tax equivalent yield assumes the maximum federal tax rate of 35%.
3	The distribution is not constant and is subject to change.
4	As a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to Auction Market Preferred Shares (“Preferred Shares”) and tender option bond trusts (“TOB”s)) minus the sum of accrued liabilities.

The table below summarizes the changes in the Trust’s market price and net asset value per share:



	10/31/08		10/31/07		Change		High		Low

Market Price	$	10.25	$	16.35	(37.31	)%	$	17.20	$	7.39
Net Asset Value	$	10.64	$	14.73	(27.77	)%	$	14.76	$	9.73


The following unaudited charts show the portfolio composition and credit quality allocations of the Trust’s long-term investments:


Portfolio Composition

Sector	10/31/08		10/31/07

Hospitals	19	%	16	%
City, County & State	17		21
Housing	13		9
Transportation	12		9
Power	10		10
Education	9		8
Industrial & Pollution Control	7		11
Tax Revenue	5		5
Water & Sewer	4		3
Tobacco	2		2
Lease Revenue	2		6


Credit Quality Allocations⁵


Credit Rating	10/31/08		10/31/07

AAA/Aaa	20	%	49	%
AA/Aa	42		17
A/A	13		8
BBB/Baa	13		14
BB/Ba	3		3
B/B	2		2
Not Rated⁶	7		7


⁵	Using the higher of Standard & Poor’s (“S&P’s”) or Moody’s Investors Service (Moody’s) ratings.
⁶	The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of October 31, 2008 and October 31, 2007, the market value of these securities was $13,439,579 representing 4% and $6,340,657 representing 2%, respectively, of the Trust’s long-term investments.



4	ANNUAL REPORT	OCTOBER 31, 2008




Trust Summary as of October 31, 2008	BlackRock Municipal Income Trust


Investment Objective

	BlackRock Municipal Income Trust (BFK) (the “Trust”) seeks to provide current income which, in the opinion of bond counsel to the issuer, is exempt from regular federal income tax.

Performance

	For the 12 months ended October 31, 2008, the Trust returned (41.05)% based on market price and (25.69)% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of (19.05)% on a NAV basis. All returns reflect reinvestment of dividends. The Trust moved from a premium to NAV to a discount by period-end, which accounts for the difference between performance based on price and performance based on NAV. The Trust was successful in delivering a competitive yield, but relative performance suffered as credit spreads widened and prices on the Trust’s lower-rated holdings declined. Management prefers to maintain the Trust’s competitive yield, and does not anticipate any significant near-term changes in portfolio composition.

	The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

Trust Information


Symbol on New York Stock Exchange	BFK
Initial Offering Date	July 27, 2001
Yield on Closing Market Price as of October 31, 2008 ($8.75)¹	9.41%
Tax Equivalent Yield²	14.48%
Current Monthly Distribution per Common Share³	$0.0686
Current Annualized Distribution per Common Share³	$0.8232
Leverage as of October 31, 2008⁴	43%


¹	Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
²	Tax equivalent yield assumes the maximum federal tax rate of 35%.
³	The distribution is not constant and is subject to change.
⁴	As a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to Preferred Shares and TOBs) minus the sum of accrued liabilities.

The table below summarizes the changes in the Trust’s market price and net asset value per share:



	10/31/08		10/31/07		Change		High		Low

Market Price	$	8.75	$	15.92		(45.04)%	$	15.97	$	6.40
Net Asset Value	$	10.08	$	14.55		(30.72)%	$	14.58	$	9.48


The following unaudited charts show the portfolio composition and credit quality allocations of the Trust’s long-term investments:



Portfolio Composition

Sector	10/31/08			10/31/07

Hospitals		24	%		24	%
Education		12			8
Industrial & Pollution Control		11			17
Housing		11			8
Transportation		11			10
City, County & State		9			10
Power		9			8
Tobacco		5			5
Tax Revenue		3			5
Lease Revenue		3			3
Water & Sewer		2			2



Credit Quality Allocations⁵

Credit Rating	10/31/08			10/31/07

AAA/Aaa		26	%		33	%
AA/Aa		22			13
A/A		17			21
BBB/Ba		17			18
BB/Ba		3			4
B/B		4			6
CCC/Caa		1			—
Not Rated⁶		10			5


⁵	Using the higher of S&P’s or Moody’s ratings.
⁶	The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of October 31, 2008 and October 31, 2007, the market value of these securities was $18,626,721 representing 2% and $12,328,689 representing 1%, respectively, of the Trust’s long-term investments.



ANNUAL REPORT	OCTOBER 31, 2008	5




Trust Summary as of October 31, 2008	BlackRock Long-Term Municipal Advantage Trust


Investment Objective

	BlackRock Long-Term Municipal Advantage Trust (BTA) (the “Trust”) seeks to provide current income which, in the opinion of bond counsel to the issuer, is exempt from regular federal income tax.

Performance

	For the 12 months ended October 31, 2008, the Trust returned (26.49)% based on market price and (33.64)% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of (19.05)% on a NAV basis. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The Trust was successful in delivering a competitive yield, but relative performance suffered as credit spreads widened and prices on the Trust’s lower-rated holdings declined. Financial market dislocations, and the associated deteriorations in liquidity and funding conditions, have precipitated a widespread reduction in leverage. The Trust has taken steps to modestly reduce leverage to more sustainable levels.

	The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

Trust Information


Symbol on New York Stock Exchange	BTA
Initial Offering Date	February 28, 2006
Yield on Closing Market Price as of October 31, 2008 ($8.40)¹	7.86%
Tax Equivalent Yield²	12.09%
Current Monthly Distribution per Common Share³	$0.055
Current Annualized Distribution per Common Share³	$0.660
Leverage as of October 31, 2008⁴	44%


¹	Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
²	Tax equivalent yield assumes the maximum federal tax rate of 35%.
³	The distribution is not constant and is subject to change.
⁴	As a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to TOBs) minus the sum of accrued liabilities.

The table below summarizes the changes in the Trust’s market price and net asset value per share:



	10/31/08		10/31/07		Change		High		Low

Market Price	$	8.40	$	12.14		(30.81)%	$	12.54	$	6.16
Net Asset Value	$	8.57	$	13.72		(37.54)%	$	13.75	$	7.83


The following unaudited charts show the portfolio composition and credit quality allocations of the Trust’s long-term investments:



Portfolio Composition

Sector	10/31/08			10/31/07

Education		20	%		21	%
Tobacco		18			9
Transportation		14			9
Hospital		13			19
Housing		11			11
Lease Revenue		7			4
Industrial & Pollution Control		6			8
Power		4			6
Water & Sewer		3			9
Tax Revenue		2			1
City, County & State		2			3



Credit Quality Allocations⁵

Credit Rating	10/31/08			10/31/07

AAA/Aaa		28	%		36	%
AA/Aa		37			32
A		4			3
BBB/Baa		18			17
BB/Ba		1			1
B/B		3			3
Not Rated⁶		9			8


⁵	Using the higher of S&P’s or Moody’s ratings.
⁶	The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of October 31, 2008 and October 31, 2007, the market value of these securities was $1,594,125 representing 1% and $6,660,850 representing 2%, respectively, of the Trust’s long-term investments.



6	ANNUAL REPORT	OCTOBER 31, 2008




The Benefits and Risks of Leveraging

The Funds may utilize leverage to seek to enhance the yield and NAV of their Common Shares. However, these objectives cannot be achieved in all interest rate environments.

To leverage, BlackRock Investment Quality Municipal Trust and BlackRock Municipal Income Trust issue Preferred Shares, which pay dividends at prevailing short-term interest rates, and invests the proceeds in long-term municipal bonds. In general, the concept of leveraging is based on the premise that the cost of assets to be obtained from leverage will be based on short-term interest rates, which normally will be lower than the income earned by each Fund on its longer-term portfolio investments. To the extent that the total assets of each Fund (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, each Fund’s Common Shareholders will benefit from the incremental yield.

To illustrate these concepts, assume a Fund’s Common Shares capitalization is $100 million and it issues Preferred Shares for an additional $50 million, creating a total value of $150 million available for investment in long-term municipal bonds. If prevailing short-term interest rates are 3% and long-term interest rates are 6%, the yield curve has a strongly positive slope. In this case, the Fund pays dividends on the $50 million of Preferred Shares based on the lower short-term interest rates. At the same time, the Fund’s total portfolio of $150 million earns the income based on long-term interest rates. Conversely, if prevailing short-term interest rates rise above long-term interest rates of 6%, the yield curve has a negative slope. In this case, the Fund pays dividends on the higher short-term interest rates whereas the Fund’s total portfolio earns income based on lower long-term interest rates.

In this case, the dividends paid to Preferred Shareholders are significantly lower than the income earned on the Fund’s long-term investments, and therefore the Common Shareholders are the beneficiaries of the incremental yield. However, if short-term interest rates rise, narrowing the differential between short-term and long-term interest rates, the incremental yield pickup on the Common Shares will be reduced or eliminated completely.

Furthermore, the value of the Fund’s portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. In contrast, the redemption value of the Fund’s Preferred Shares does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Fund’s NAV positively or negatively in addition to the impact on Fund performance from leverage from Preferred Shares discussed above.

The Funds may also from time to time, leverage their assets through the use of tender option bond (“TOB”) programs, as described in Note 1 of the Notes to Financial Statements. TOB investments generally will provide the Funds with economic benefits in periods of declining short-term interest rates, but expose the Funds to risks during periods of rising short-term interest rates similar to those associated with Preferred Shares issued by the Funds, as described above. Additionally, fluctuations in the market value of municipal securities deposited into the TOB trust may adversely affect the Funds’ NAVs per share.

The use of leverage may enhance opportunities for increased returns to the Funds and Common Shareholders, but as described above, it also creates risks as short- or long-term interest rates fluctuate. Leverage also will generally cause greater changes in a Fund’s NAV, market price and dividend rate than a comparable portfolio without leverage. If the income derived from securities purchased with assets received from leverage exceeds the cost of leverage, the Funds’ net income will be greater than if leverage had not been used. Conversely, if the income from the securities purchased is not sufficient to cover the cost of leverage, the Funds’ net income will be less than if leverage had not been used, and therefore the amount available for distribution to Common Shareholders will be reduced. The Funds may be required to sell portfolio securities at inopportune times or below fair market values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments, which may cause the Funds to incur losses. The use of leverage may limit the Funds’ ability to invest in certain types of securities or use certain types of hedging strategies, such as in the case of certain restrictions imposed by ratings agencies that rate preferred shares issued by the Funds. The Funds will incur expenses in connection with the use of leverage, all of which are borne by the holders of the Common Shares and may reduce returns on the Common Shares.

Under the Investment Company Act of 1940, BlackRock Investment Quality Municipal Trust and BlackRock Municipal Income Trust are permitted to issue Preferred Shares in an amount of up to 50% of their total managed assets at the time of issuance. Under normal circumstances, each Fund anticipates that the total economic leverage from Preferred Shares and TOBs will not exceed 50% of its total managed assets at the time such leverage is incurred. As of October 31, 2008, the Funds had economic leverage from Preferred Shares and TOBs as a percentage of their total managed assets as follows:



	Percent of Leverage

Investment Quality Municipal	43%
Municipal Income	43%
Long-Term Municipal	44%

Derivative Instruments

The Funds may invest in various derivative instruments, including swap agreements and futures, and other instruments specified in the Notes to Financials Statements, which constitute additional forms of economic leverage. Such instruments are used to obtain exposure to a market without owning or taking physical custody of securities or to hedge market and/or interest rate risks. Such derivative instruments involve risks, including the imperfect correlation between the value of a derivative instrument and the underlying asset, possible default of the other party to the transaction and illiquidity of the derivative instrument. The Funds’ ability to successfully use a derivative instrument depends on the Advisor’s ability to accurately predict pertinent market movements, which cannot be assured. The use of derivative instruments may result in losses greater than if they had not been used, may require the Funds to sell or purchase portfolio securities at inopportune times or for prices other than current market values, may limit the amount of appreciation the Funds can realize on an investment or may cause the Funds to hold a security that it might otherwise sell. The Funds’ investments in these instruments are discussed in detail in the Notes to Financial Statements.



ANNUAL REPORT	OCTOBER 31, 2008	7




Schedule of Investments October 31, 2008	BlackRock Investment Quality Municipal Income Trust (BKN) (Percentages shown are based on Net Assets)


Municipal Bonds	Par (000)		Value

Arizona—5.6%
Glendale, Arizona, Municipal Property Corporation, Excise Tax Revenue Refunding Bonds, Series A, 4.50%, 7/01/32 (a)	$	1,150	$	945,955
Goodyear, Arizona, GO, 4.25%, 7/01/36 (a)		2,125		1,616,488
McAllister Academic Village, LLC, Arizona, Revenue Refunding Bonds (Arizona State University - Hassayampa Academic Village Project), 5%, 7/01/38		3,000		2,492,910
Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds:
5%, 12/01/32		1,035		645,591
5%, 12/01/37		4,585		2,760,216
San Luis, Arizona, Facilities Development Corporation, Senior Lien Revenue Bonds (Regional Detention Center Project):
6.25%, 5/01/15		490		430,901
7%, 5/01/20		490		421,302
7.25%, 5/01/27		980		824,523

				10,137,886

California—22.3%
California County Tobacco Securitization Agency, Tobacco Revenue Bonds (Stanislaus County Tobacco Funding Corporation), Sub-Series C, 6.30%, 6/01/55 (b)		7,090		61,612
California State Department of Veteran Affairs, Home Purchase Revenue Bonds, AMT, Series B, 5.25%, 12/01/37		5,000		3,986,000
California State, GO, 5%, 3/01/33 (c)		5,000		4,487,500
California State, GO, Refunding
5.625%, 5/01/18		290		297,465
5%, 2/01/32		5,800		5,224,872
5%, 6/01/32		4,545		4,091,409
Foothill/Eastern Corridor Agency, California, Toll Road Revenue Refunding Bonds:
5.562%, 7/15/28 (d)		7,000		6,109,320
5.75%, 1/15/40		3,495		2,719,984
Golden State Tobacco Securitization Corporation of California, Tobacco Settlement Revenue Refunding Bonds, Senior Series A-1, 5.125%, 6/01/47		805		472,640
Los Altos, California, School District, GO (Election of 1998), Series B, 5.93%, 8/01/13 (b)(e)(f)		10,945		4,900,186
Sacramento County, California, Airport System Revenue Bonds, AMT (a):
Senior Series A, 5%, 7/01/41		2,000		1,753,420
Senior Series B, 5.25%, 7/01/39		3,495		2,647,637
University of California Revenue Bonds, Series B, 4.75%, 5/15/38		4,185		3,490,206

				40,242,251

Colorado—1.4%
Colorado Health Facilities Authority, Revenue Refunding Bonds (Poudre Valley Health Care), Series B, 5.25%, 3/01/36 (a)		1,750		1,598,608
Colorado Springs, Colorado, Utilities System Improvement Revenue Bonds, Subordinate Lien, Series C, 5%, 11/15/45 (a)		1,030		899,396

				2,498,004


Municipal Bonds	Par (000)		Value

Connecticut—2.6%
Connecticut State Health and Educational Facilities Authority Revenue Bonds (Quinnipiac University), Series J, 5%, 7/01/37 (e)	$	3,000	$	2,548,260
Mashantucket Western Pequot Tribe, Connecticut, Special Revenue Refunding Bonds, Sub-Series A, 5.50%, 9/01/28 (l)		3,000		2,128,410

				4,676,670

District of Columbia—2.2%
District of Columbia Tobacco Settlement Financing Corporation, Asset-Backed Revenue Refunding Bonds, 6.50%, 5/15/33		4,960		3,922,914

Florida—17.7%
FishHawk Community Development District II, Florida, Special Assessment and Tax Allocation Bonds, Series A, 6.125%, 5/01/34		2,020		1,610,627
Florida Housing Finance Corporation, Homeowner Mortgage Revenue Bonds, AMT, Series 6, 4.70%, 7/01/37		985		665,978
Halifax Hospital Medical Center, Florida, Hospital Revenue Refunding Bonds, Series A, 5%, 6/01/38		2,415		1,640,099
Hillsborough County, Florida, IDA, Exempt Facilities Revenue Bonds (National Gypsum Company), AMT, Series A, 7.125%, 4/01/30		3,700		2,437,967
Miami Beach, Florida, Health Facilities Authority, Hospital Revenue Refunding Bonds (Mount Sinai Medical Center of Florida), 6.75%, 11/15/21		3,770		3,154,246
Miami-Dade County, Florida, Special Obligation Revenue Bonds, Sub-Series A (b)(e):
5.19%, 10/01/31		3,380		753,132
5.20%, 10/01/32		4,225		878,039
5.21%, 10/01/33		4,000		778,800
5.21%, 10/01/34		4,580		808,278
5.22%, 10/01/35		5,000		817,600
5.23%, 10/01/36		10,000		1,520,600
5.24%, 10/01/37		10,000		1,413,800
Orange County, Florida, Tourist Development, Tax Revenue Refunding Bonds, 4.75%, 10/01/32 (g)		7,895		6,451,478
Sumter Landing Community Development District, Florida, Recreational Revenue Bonds, Sub-Series B, 5.70%, 10/01/38		3,685		2,556,727
Village Community Development District Number 6, Florida, Special Assessment Bonds, 5.625%, 5/01/22		7,740		6,492,157

				31,979,528

Georgia—3.9%
Atlanta, Georgia, Airport Passenger Facility Charge and Subordinate Lien General Revenue Bonds, Series J, 5%, 1/01/34 (a)		1,760		1,557,723
Atlanta, Georgia, Water and Wastewater Revenue Bonds, 5%, 11/01/34 (a)		4,000		3,548,600
Main Street Natural Gas, Inc., Georgia, Gas Project Revenue Bonds, Series A, 6.375%, 7/15/38 (h)(i)		1,000		155,000
Milledgeville-Baldwin County, Georgia, Development Authority Revenue Bonds (Georgia College and State University Foundation), 6%, 9/01/14 (f)		1,500		1,705,335

				6,966,658


Portfolio Abbreviations

To simplify the listings of the portfolio holdings in the Schedules of Investments, the names and descriptions of many of the securities have been abbreviated according to the list on the right.


AMT	Alternative Minimum Tax (subject to)
EDA	Economic Development Authority
EDR	Economic Development Revenue Bonds
GO	General Obligation Bonds
HDA	Housing Development Authority
HFA	Housing Finance Agency
IDA	Industrial Development Authority
IDR	Industrial Development Revenue Bonds
M/F	Multi-Family
PCR	Pollution Control Revenue Bonds
S/F	Single-Family
SIFMA	Securities Industry and Financial Markets Association


See Notes to Financial Statements.


8	ANNUAL REPORT	OCTOBER 31, 2008




Schedule of Investments (continued)	BlackRock Investment Quality Municipal Trust (BKN) (Percentages shown are based on Net Assets)


Municipal Bonds	Par (000)		Value

Hawaii—1.3%
Hawaii State Department of Budget and Finance, Special Purpose Revenue Refunding Bonds (Hawaiian Electric Company, Inc.), AMT, Series D, 6.15%, 1/01/20 (j)(k)	$	2,500	$	2,389,025

Idaho—1.9%
Idaho Health Facilities Authority, Revenue Refunding Bonds (Trinity Health Group), Series B, 6.25%, 12/01/33		2,500		2,420,000
Idaho Housing and Financing Association, S/F Mortgage Revenue Bonds, Series D, Class I, 5.50%, 7/01/40		1,250		1,100,287

				3,520,287

Illinois—13.9%
Bolingbrook, Illinois, GO, Refunding, Series A, 4.75%, 1/01/38 (e)		6,500		5,310,305
Centerpoint Intermodal Center Program Trust, Illinois, Tax Allocation Bonds, Class A, 8%, 6/15/23 (l)(m)		1,920		1,569,523
Chicago, Illinois, O’Hare International Airport Revenue Refunding Bonds, Third Lien, AMT, Series C-2, 5.25%, 1/01/30 (a)		3,540		2,844,355
Chicago, Illinois, Public Building Commission, Building Revenue Bonds, Series A, 7%, 1/01/20 (e)(n)		5,000		5,873,900
Illinois Municipal Electric Agency, Power Supply Revenue Bonds, 4.50%, 2/01/35 (o)		2,145		1,652,251
Illinois State Finance Authority Revenue Bonds (Friendship Village of Schaumburg), Series A, 5.625%, 2/15/37		690		437,833
(Monarch Landing, Inc. Project), Series A, 7%, 12/01/37		1,155		892,318
Northwestern Memorial Hospital), Series A, 5.50%, 8/15/14 (f)		5,800		6,331,280
Illinois State Finance Authority, Student Housing Revenue Bonds (MJH Education Assistance IV LLC), Sub-Series B, 5.375%, 6/01/35 (h)(i)		700		138,824

				25,050,589

Kentucky—4.2%
Kentucky Economic Development Finance Authority, Health System Revenue Refunding Bonds (Norton Healthcare, Inc.), Series B, 6.19%, 10/01/23 (b)(e)		13,500		4,993,380
Kentucky Economic Development Financing Authority, Louisville Arena Project Revenue Bonds (Louisville Arena Authority, Inc.), Sub-Series A-1, 6%, 12/01/38 (p)		700		661,003
Louisville and Jefferson County, Kentucky, Metropolitan Government Health Facilities, Revenue Refunding Bonds (Jewish Hospital and Saint Mary’s HealthCare), 6.125%, 2/01/37		2,250		1,848,307

				7,502,690

Maryland—1.9%
Maryland State Community Development Administration, Department of Housing and Community Development, Residential Revenue Refunding Bonds, AMT, Series A, 4.80%, 9/01/42		3,000		2,044,530
Maryland State Health and Higher Educational Facilities Authority, Revenue Refunding Bonds (MedStar Health, Inc.), 5.50%, 8/15/33		1,740		1,384,970

				3,429,500

Michigan—0.7%
Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Henry Ford Health System), Series A, 5.25%, 11/15/46		1,670		1,242,780

Missouri—5.9%
Missouri Joint Municipal Electric Utility Commission, Power Project Revenue Bonds (Plum Point Project), 4.60%, 1/01/36 (e)		2,820		2,071,713
Missouri State Health and Educational Facilities Authority, Health Facilities Revenue Bonds (Saint Luke’s Health System), Series A, 5.50%, 11/15/35 (a)		4,500		4,293,135


Municipal Bonds	Par (000)		Value

Missouri (concluded)
Missouri State Housing Development Commission, S/F Mortgage Revenue Refunding Bonds (Homeownership Loan Program), AMT, Series B-1, 5.05%, 3/01/38 (q)(r)(s)	$	5,035	$	4,298,883

				10,663,731

Multi-State—6.4%
Charter Mac Equity Issuer Trust, 7.60%, 11/30/50 (l)(t)		7,000		7,469,210
MuniMae TE Bond Subsidiary LLC, 7.75%, 6/30/50 (l)(t)		4,000		4,063,000

				11,532,210

Nebraska—3.7%
Omaha Public Power District, Nebraska, Electric System Revenue Bonds, Series A:
5%, 2/01/34		5,000		4,503,250
4.75%, 2/01/44		2,765		2,232,461

				6,735,711

Nevada—1.0%
Clark County, Nevada, EDR, Refunding (Alexander Dawson School of Nevada Project), 5%, 5/15/29		2,065		1,753,805

New Jersey—4.3%
Middlesex County, New Jersey, Improvement Authority, Subordinate Revenue Bonds (Heldrich Center Hotel/ Conference Project), Series B, 6.25%, 1/01/37		1,510		1,016,924
New Jersey EDA, Cigarette Tax Revenue Bonds, 5.75%, 6/15/29		7,000		5,432,700
New Jersey State Housing and Mortgage Finance Agency Revenue Bonds, Series AA, 6.50%, 10/01/38		1,250		1,261,725

				7,711,349

New York—8.5%
Albany, New York, IDA, Civic Facility Revenue Bonds (New Covenant Charter School Project), Series A, 7%, 5/01/35		725		485,257
Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Series A, 5%, 2/15/47 (o)		1,400		1,064,406
Metropolitan Transportation Authority, New York, Revenue Refunding Bonds, Series A, 5%, 11/15/25 (o)		750		681,052
Metropolitan Transportation Authority, New York, Transportation Revenue Refunding Bonds, Series F, 5%, 11/15/35		691		604,093
New York City, New York, City IDA, Special Facility Revenue Bonds (American Airlines, Inc. - JFK International Airport), AMT, 7.625%, 8/01/25 (m)		2,600		1,828,554
New York City, New York, City Municipal Water Finance Authority, Water and Sewer System Revenue Bonds:
Series A, 5.75%, 6/15/40		700		697,718
Series D, 5%, 6/15/38		1,000		901,680
New York City, New York, City Transitional Finance Authority, Building Aid Revenue Bonds, Series S-1, 5%, 7/15/24 (p)		2,000		1,915,840
New York Liberty Development Corporation Revenue Bonds (Goldman Sachs Headquarters), 5.25%, 10/01/35		4,100		3,320,959
New York State Dormitory Authority, Revenue Refunding Bonds (University of Rochester), Series A (d)(e)(f):
5.693%, 7/01/10		1,865		1,794,801
6.013%, 7/01/10		2,030		1,953,591

				15,247,951

North Carolina—0.8%
Gaston County, North Carolina, Industrial Facilities and Pollution Control Financing Authority, Revenue Bonds (National Gypsum Company Project), AMT, 5.75%, 8/01/35		2,425		1,422,068

Ohio—8.3%
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Bonds, Series A-2, 6.50%, 6/01/47		1,870		1,282,147
Cuyahoga County, Ohio, Revenue Refunding Bonds, Series A:
6%, 1/01/20		3,485		3,512,810
6%, 1/01/21		5,000		5,017,650


See Notes to Financial Statements.


	ANNUAL REPORT	OCTOBER 31, 2008	9




Schedule of Investments (continued)	BlackRock Investment Quality Municipal Trust (BKN) (Percentages shown are based on Net Assets)


Municipal Bonds	Par (000)		Value

Ohio (concluded)
Ohio State Air Quality Development Authority, Revenue Refunding Bonds (Dayton Power and Light Company Project), Series B, 4.80%, 1/01/34 (p)	$	6,000	$	5,059,620

				14,872,227

Oklahoma—2.3%
Oklahoma State Development Finance Authority, Revenue Refunding Bonds (Saint John Health System), 5%, 2/15/42		2,110		1,692,769
Tulsa, Oklahoma, Municipal Airport Trust, Revenue Refunding Bonds, Series A, 7.75%, 6/01/35		2,900		2,460,969

				4,153,738

Pennsylvania—6.4%
Delaware River Port Authority of Pennsylvania and New Jersey Revenue Bonds (Port District Project), Series B, 5.70%, 1/01/22 (a)		2,000		2,016,420
McKeesport, Pennsylvania, Area School District, GO, Refunding (b)(p)
5.53%, 10/01/31		2,435		530,660
5.53%, 10/01/31 (n)		870		229,515
Pennsylvania Economic Development Financing Authority, Exempt Facilities Revenue Bonds (Amtrak Project), AMT, Series A:
6.25%, 11/01/31		2,000		1,608,000
6.75%, 12/01/36 (m)		6,380		4,229,366
6.375%, 11/01/41		3,100		2,463,043
Pennsylvania HFA, S/F Mortgage Revenue Refunding Bonds, AMT, Series 97A, 4.60%, 10/01/27		580		428,852

				11,505,856

Rhode Island—0.1%
Rhode Island State Health and Educational Building Corporation, Hospital Revenue Refunding Bonds (Lifespan Obligation Group), 5.50%, 5/15/16 (e)		200		198,294

South Carolina—5.6%
South Carolina Housing Finance and Development Authority, Mortgage Revenue Refunding Bonds, AMT, Series A-2, 5.15%, 7/01/37 (j)		4,975		3,749,260
South Carolina Jobs EDA, Hospital Facilities Revenue Refunding Bonds (Palmetto Health Alliance):
Series A, 6.25%, 8/01/31		2,185		1,884,497
Series C, 6.875%, 8/01/13 (f)		4,000		4,521,626

				10,155,383

Tennessee—2.5%
Memphis-Shelby County, Tennessee, Airport Authority, Airport Revenue Bonds, AMT, Series D, 6%, 3/01/24 (j)		4,865		4,424,182

Texas—11.9%
Dallas-Fort Worth, Texas, International Airport, Joint Revenue Bonds, AMT, Series C, 6.25%, 11/01/28 (e)		550		505,681
Grapevine, Texas, GO, 5.875%, 8/15/10 (f)(p)		6,000		6,367,140
Harris County-Houston Sports Authority, Texas, Revenue Refunding Bonds, Senior Lien, Series A, 6.146%, 11/15/38 (b)(e)		5,000		526,300
Lower Colorado River Authority, Texas, Revenue Refunding Bonds:
5%, 5/15/13 (e)(f)		20		21,470
4.75%, 5/15/36 (j)		3,595		3,026,918
Series A, 5%, 5/15/13 (e)(f)		5		5,368
Montgomery County, Texas, Municipal Utility District Number 46, Waterworks and Sewer System, GO, 4.75%, 3/01/30 (e)		675		598,651
Pearland, Texas, GO, Refunding, 4.75%, 3/01/29 (e)(p)		2,010		1,742,469
San Antonio Energy Acquisition Public Facilities Corporation, Texas, Gas Supply Revenue Bonds, 5.50%, 8/01/24		2,550		1,884,909
Texas State Turnpike Authority, Central Texas Turnpike System Revenue Bonds (j):
6.06%, 8/15/31 (b)		15,000		3,025,500
First Tier, Series A, 5%, 8/15/42		3,325		2,662,028


Municipal Bonds	Par (000)		Value

Texas (concluded)
Texas State, Water Financial Assistance, GO, Refunding, 5.75%, 8/01/22	$	1,000	$	1,026,670

				21,393,104

Virginia—0.8%
Tobacco Settlement Financing Corporation of Virginia, Revenue Refunding Bonds, Senior Series B-1, 5%, 6/01/47		2,900		1,539,175

Washington—0.5%
King County, Washington, Sewer Revenue Refunding Bonds, 5%, 1/01/36 (a)		1,000		899,980

Wisconsin—1.6%
Wisconsin State Health and Educational Facilities Authority Revenue Bonds (Aurora Health Care, Inc.), 6.40%, 4/15/33		3,220		2,843,196

Wyoming—0.8%
Wyoming Community Development Authority, Housing Revenue Bonds, AMT, Series 3, 4.75%, 12/01/37		2,145		1,460,123

Puerto Rico—5.9%
Puerto Rico Commonwealth Aqueduct and Sewer Authority, Senior Lien Revenue Bonds, Series A, 6%, 7/01/38		2,500		2,275,500
Puerto Rico Commonwealth Highway and Transportation Authority, Transportation Revenue Refunding Bonds, Series N, 5.25%, 7/01/34 (n)		3,115		2,773,502
Puerto Rico Electric Power Authority, Power Revenue Refunding Bonds, Series UU, 5%, 7/01/23 (a)		2,900		2,710,746
Puerto Rico Housing Financing Authority, Capital Funding Program, Subordinate Revenue Refunding Bonds,
5.125%, 12/01/27		3,000		2,804,400

				10,564,148

Total Municipal Bonds—156.9%				282,635,013




Municipal Bonds Transferred to Tender Option Bond Trusts (u)

Colorado—2.6%
Colorado Health Facilities Authority Revenue Bonds (Catholic Health), Series C-7, 5%, 9/01/36 (a)		5,250		4,646,565

Illinois—1.7%
Chicago, Illinois, Housing Authority, Capital Program Revenue Refunding Bonds, 5%, 7/01/24 (a)		3,194		3,040,078

Ohio—2.1%
Montgomery County, Ohio, Revenue Bonds (Catholic Health Initiatives), Series C-1, 5%, 10/01/41 (a)		1,740		1,511,381
Ohio State Higher Educational Facilities Commission, Hospital Revenue Bonds (University Hospitals Health System),
Series A, 5.25%, 1/01/2033		2,600		2,206,334

				3,717,715

Massachusetts—1.5%
Massachusetts State Water Resource Authority, General Revenue Refunding Bonds, Series A, 5%, 8/01/41		3,070		2,748,387

New York—2.2%
New York State Dormitory Authority, Non-State Supported Debt Revenue Bonds (New York University), Series A, 5%, 7/01/2038		3,359		3,010,812
Port Authority of New York and New Jersey, Consolidated Revenue Refunding Bonds, AMT, 152nd Series, 5.75%, 11/01/30		1,005		958,036

				3,968,848

Total Municipal Bonds Transferred to Tender Option Bond Trusts—10.1%				18,121,593

Total Long-Term Investments (Cost—$353,007,025)—167.0%				300,756,606


See Notes to Financial Statements.


10	ANNUAL REPORT	OCTOBER 31, 2008




Schedule of Investments (concluded)	BlackRock Investment Quality Municipal Trust (BKN) (Percentages shown are based on Net Assets)


Short-Term Securities	Shares		Value

Merrill Lynch Institutional Tax-Exempt Fund, 1.63% (v)(w)		15,400,000	$	15,400,000

Total Short-Term Securities (Cost—$15,400,000)—8.5%				15,400,000

*Total Investments (Cost—$368,407,025)—175.5%**				316,156,606
Other Assets Less Liabilities—1.0%				1,901,005
Liability for Trust Certificates, Including Interest Expense and Fees Payable—(6.0)%				(10,865,775	)
Preferred Shares, at Redemption Value—(70.5)%				(127,003,399	)

Net Assets Applicable to Common Shares—100.0%			$	180,188,437


*	The cost and unrealized appreciation (depreciation) of investments as of October 31, 2008, as computed for federal income tax purposes, were as follows:


Aggregate cost	$	356,474,020

Gross unrealized appreciation	$	3,907,718
Gross unrealized depreciation		(55,032,931	)

Net unrealized depreciation	$	(51,125,213	)


(a)	FSA Insured.
(b)	Represents a zero-coupon. Rate shown reflects the effective yield at the time of purchase.
(c)	CIFG Insured.
(d)	Represents a step bond. Rate shown reflects the effective yield at the time of purchase.
(e)	MBIA Insured.
(f)	U.S. government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(g)	XL Capital Insured.
(h)	Non-income producing security.
(i)	Issuer filed for bankruptcy and/or is in default of interest payments.
(j)	AMBAC Insured.
(k)	All or a portion of security has been pledged as collateral for open swaps.
(l)	Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(m)	Variable rate security. Rate shown is as of report date.
(n)	Security is collateralized by Municipal or U.S. Treasury Obligations.
(o)	FGIC Insured.
(p)	Assured Guaranty Insured.
(q)	FHLMC Collateralized.
(r)	FNMA Collateralized.
(s)	GNMA Collateralized.
(t)	Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity, and is subject to mandatory redemption at maturity.
(u)	Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.
(v)	Represents the current yield as of report date.
(w)	Investments in companies considered to be an affiliate of the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:



Affiliate	Net Activity		Income

Merrill Lynch Institutional Tax-Exempt Fund		9,900,000	$	351,233


•	Forward interest rate swaps outstanding as of October 31, 2008 were as follows:


	Notional Amount (000)		Unrealized Appreciation

Pay a fixed rate of 3.709% and receive a floating rate based on 1-week SIFMA Municipal Swap Index Rate Broker, JPMorgan Chase Bank N.A. Expires January 2024	$	20,000	$	70,840


See Notes to Financial Statements.


	ANNUAL REPORT	OCTOBER 31, 2008	11




Schedule of Investments October 31, 2008	BlackRock Municipal Income Trust (BFK) (Percentages shown are based on Net Assets)


Municipal Bonds	Par (000)		Value

Alabama—3.6%
Huntsville, Alabama, Health Care Authority Revenue Bonds, Series B, 5.75%, 6/01/12 (a)	$	15,000	$	16,211,850

Arizona—6.8%
Phoenix and Pima County, Arizona, IDA, S/F Mortgage Revenue Refunding Bonds, AMT, Series 2007-1, 5.25%, 8/01/38 (b)(c)(d)		5,098		4,409,984
Pima County, Arizona, IDA, Education Revenue Bonds (American Charter Schools Foundation), Series A, 5.625%, 7/01/38		4,590		3,227,504
Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds:
5%, 12/01/32		10,280		6,412,253
5%, 12/01/37		14,395		8,665,934
Scottsdale, Arizona, IDA, Hospital Revenue Bonds (Scottsdale Healthcare), 5.80%, 12/01/11 (a)		7,000		7,588,630

				30,304,305

California—19.2%
California County Tobacco Securitization Agency, Tobacco Revenue Bonds (Stanislaus County Tobacco Funding Corporation), Sub-Series C, 6.30%, 6/01/55 (e)		17,855		155,160
California State, GO, Refunding:
5%, 6/01/32		11,670		10,505,334
5%, 6/01/34		7,000		6,256,040
California Statewide Communities Development Authority, Health Facility Revenue Bonds (Memorial Health Services), Series A, 5.50%, 10/01/33		5,000		4,219,200
Foothill/Eastern Corridor Agency, California, Toll Road Revenue Refunding Bonds (e):
6.09%, 1/15/32		54,635		8,240,597
6.019%, 1/15/34		20,535		2,631,355
6.093%, 1/15/38		75,000		6,763,500
Golden State Tobacco Securitization Corporation of California, Tobacco Settlement Revenue Bonds, Series A-1, 6.625%, 6/01/13 (a)		10,000		11,231,300
Lincoln, California, Special Tax Bonds (Community Facilities District Number 2003-1), 6%, 9/01/13 (a)		3,115		3,532,971
Los Angeles, California, Regional Airports Improvement Corporation, Facilities Lease Revenue Refunding Bonds (LAXFUEL Corporation—Los Angeles International Airport), AMT, 5.50%, 1/01/32 (f)		13,320		10,965,290
Murrieta, California, Community Facilities District Number 2, Special Tax Bonds (The Oaks Improvement Area Project), Series A, 6%, 9/01/34		5,000		3,927,600
Sacramento County, California, Airport System Revenue Bonds, AMT, Senior Series B, 5.25%, 7/01/39 (g)		6,220		4,711,961
University of California Revenue Bonds, Series B, 4.75%, 5/15/38		10,565		8,810,999
West Valley Mission Community College District, California, GO (Election of 2004), Series A, 4.75%, 8/01/30 (g)		4,015		3,551,709

				85,503,016

Colorado—3.7%
Colorado Health Facilities Authority, Revenue Refunding Bonds (Poudre Valley Health Care)(g):
5.20%, 3/01/31		1,440		1,344,398
Series B, 5.25%, 3/01/36		2,875		2,626,284
Series C, 5.25%, 3/01/40		5,000		4,472,600
Colorado Springs, Colorado, Utilities System Improvement Revenue Bonds, Subordinate Lien, Series C, 5%, 11/15/45 (g)		2,545		2,222,294
Denver, Colorado, Health and Hospital Authority, Healthcare Revenue Bonds, Series A, 6%, 12/01/11 (a)		3,500		3,816,330


Municipal Bonds	Par (000)		Value

Colorado (concluded)
Park Creek Metropolitan District, Colorado, Senior Limited Tax Supported Revenue Refunding Bonds, 5.50%, 12/01/37	$	2,530	$	1,880,347

				16,362,253

District of Columbia—8.0%
District of Columbia Revenue Bonds (Georgetown University), Series A (a)(e)(h):
6.013%, 4/01/11		15,600		3,295,500
6.015%, 4/01/11		51,185		10,185,303
District of Columbia, Revenue Refunding Bonds (Friendship Public Charter School, Inc.), 5.25%, 6/01/33 (i)		2,390		1,599,436
District of Columbia Tobacco Settlement Financing Corporation, Asset-Backed Revenue Refunding Bonds, 6.75%, 5/15/40		25,535		20,541,375

				35,621,614

Florida—9.5%
Heritage Isle at Viera Community Development District, Florida, Special Assessment Bonds, Series A, 6%, 5/01/35		1,905		1,488,319
Highlands County, Florida, Health Facilities Authority, Hospital Revenue Bonds (Adventist Health System), Series A, 6%, 11/15/11 (a)		9,670		10,585,942
Martin County, Florida, IDA, IDR, Refunding (Indiantown Cogeneration Project), AMT, Series A, 7.875%, 12/15/25		9,000		8,082,450
Miami Beach, Florida, Health Facilities Authority, Hospital Revenue Refunding Bonds (Mount Sinai Medical Center of Florida), 6.75%, 11/15/21		9,540		7,981,832
Orange County, Florida, Tourist Development, Tax Revenue Refunding Bonds, 4.75%, 10/01/32 (j)		5,440		4,445,350
Stevens Plantation Community Development District, Florida, Special Assessment Revenue Bonds, Series A, 7.10%, 5/01/35		3,830		2,990,158
Village Community Development District Number 6, Florida, Special Assessment Bonds, 5.625%, 5/01/22		7,740		6,492,157

				42,066,208

Georgia—0.8%
Main Street Natural Gas, Inc., Georgia, Gas Project Revenue Bonds, Series A, 6.375%, 7/15/38 (k)(l)		3,500		542,500
Richmond County, Georgia, Development Authority, Environmental Improvement Revenue Refunding Bonds (International Paper Co. Projects), AMT, Series A, 6%, 2/01/25		4,000		2,930,600

				3,473,100

Idaho—4.0%
University of Idaho, Student Fee Revenue Bonds (University Housing Improvement Projects), 5.40%, 4/01/11 (a)(m)		16,970		18,030,455

Illinois—11.0%
Bolingbrook, Illinois, GO, Refunding, Series B (e)(h)(m):
6%, 1/01/33		7,120		1,513,926
6%, 1/01/34		14,085		2,768,266
Centerpoint Intermodal Center Program Trust, Illinois, Tax Allocation Bonds, Class A, 8%, 6/15/23 (n)(o)		4,630		3,784,840
Chicago, Illinois, O’Hare International Airport Revenue Refunding Bonds, Third Lien, AMT, Series C-2, 5.25%, 1/01/30 (g)		7,650		6,146,699
Illinois Educational Facilities Authority, Revenue Refunding Bonds (University of Chicago), Series A, 5.25%, 7/01/41		760		727,274
Illinois Educational Facilities Authority, Student Housing Revenue Bonds (Education Advancement Fund—University Center Project at DePaul), 6.25%, 5/01/12 (a)		10,000		11,098,800
Illinois Health Facilities Authority, Revenue Refunding Bonds (Elmhurst Memorial Healthcare):
5.50%, 1/01/22		5,000		4,341,650
5.625%, 1/01/28		6,000		4,976,340
Illinois Municipal Electric Agency, Power Supply Revenue Bonds, 4.50%, 2/01/35 (m)		7,975		6,142,983


See Notes to Financial Statements.


12	ANNUAL REPORT	OCTOBER 31, 2008




Schedule of Investments (continued)	BlackRock Municipal Income Trust (BFK) (Percentages shown are based on Net Assets)


Municipal Bonds	Par (000)		Value

Illinois (concluded)
Illinois State Finance Authority Revenue Bonds:
(Friendship Village of Schaumburg), Series A, 5.625%, 2/15/37	$	1,685	$	1,069,200
(Monarch Landing, Inc. Project), Series A, 7%, 12/01/37		2,885		2,228,864
(Northwestern Memorial Hospital), Series A, 5.50%, 8/15/14 (a)		3,700		4,038,920
Illinois State Finance Authority, Student Housing Revenue Bonds (MJH Education Assistance IV LLC), Sub-Series B, 5.375%, 6/01/35 (k)(l)		1,675		332,186

				49,169,948

Indiana—6.5%
Indiana Health Facilities Financing Authority, Hospital Revenue Refunding Bonds (Methodist Hospital, Inc.), 5.50%, 9/15/31		9,000		6,507,180
Petersburg, Indiana, PCR, Refunding (Indianapolis Power & Light Co. Project), AMT:
5.90%, 12/01/24		10,000		7,919,300
5.95%, 12/01/29		16,000		12,862,080
Vincennes, Indiana, EDR, Refunding, 6.25%, 1/01/24		2,305		1,763,579

				29,052,139

Kentucky—0.2%
Kentucky Housing Corporation, Housing Revenue Bonds, AMT, Series F, 5.45%, 1/01/32 (d)(p)		900		736,677

Louisiana—2.4%
Louisiana Local Government Environmental Facilities and Community Development Authority, Revenue Bonds (Capital Projects and Equipment Acquisition Program), 6.55%, 9/01/25 (i)		9,215		7,500,918
Saint Tammany Parish, Louisiana, Financing Authority, S/F Mortgage Revenue Bonds (Home Ownership Program), Series A, 5.25%, 12/01/39 (b)(c)(d)		3,166		3,037,125

				10,538,043

Maryland—0.4%
Maryland State Community Development Administration, Department of Housing and Community Development, Residential Revenue Refunding Bonds, AMT, Series A, 4.65%, 9/01/32		2,665		1,865,607

Michigan—0.7%
Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Henry Ford Health System), Series A, 5.25%, 11/15/46		4,230		3,147,881

Mississippi—3.6%
Gulfport, Mississippi, Hospital Facility Revenue Bonds (Memorial Hospital at Gulfport Project), Series A, 5.75%, 7/01/31		18,680		15,931,051

Missouri—0.1%
Missouri Joint Municipal Electric Utility Commission, Power Project Revenue Bonds (Plum Point Project), 4.60%, 1/01/36 (h)		695		510,582

Multi-State—9.9%
Charter Mac Equity Issuer Trust (n)(q):
6.30%, 6/30/49		11,000		11,217,360
6.625%, 6/30/49		1,000		1,021,350
6.80%, 11/30/50		6,500		6,849,830
6.80%, 10/31/52		16,000		17,008,000
MuniMae TE Bond Subsidiary LLC, 6.875%, 6/30/49 (n)(q)		8,000		8,047,280

				44,143,820

Nebraska—1.3%
Omaha Public Power District, Nebraska, Electric System Revenue Bonds, Series A, 4.75%, 2/01/44		6,990		5,643,726

Nevada—1.0%
Clark County, Nevada, EDR, Refunding (Alexander Dawson School of Nevada Project), 5%, 5/15/29		5,260		4,467,318


Municipal Bonds	Par (000)		Value

New Hampshire—1.4%
New Hampshire Health and Education Facilities Authority Revenue Bonds (Exeter Hospital Obligated Group), 5.75%, 10/01/31	$	3,500	$	3,061,450
New Hampshire State Business Finance Authority, PCR, Refunding (Public Service Company Project), AMT, Series B, 4.75%, 5/01/21 (h)		4,000		3,295,360

				6,356,810

New Jersey—8.3%
Middlesex County, New Jersey, Improvement Authority, Subordinate Revenue Bonds (Heldrich Center Hotel/ Conference Project), Series B, 6.25%, 1/01/37		3,680		2,478,333
New Jersey EDA, Cigarette Tax Revenue Bonds, 5.75%, 6/15/29		18,500		14,357,850
New Jersey EDA, EDR, Refunding (Kapkowski Road Landfill Reclamation Improvement District Project), 6.50%, 4/01/28		8,000		6,562,480
New Jersey EDA, Special Facility Revenue Bonds (Continental Airlines Inc. Project), AMT, 7%, 11/15/30		15,410		9,934,673
Tobacco Settlement Financing Corporation of New Jersey, Asset-Backed Revenue Refunding Bonds, Series 1A, 4.50%, 6/01/23		4,620		3,720,024

				37,053,360

New York—4.6%
Albany, New York, IDA, Civic Facility Revenue Bonds (New Covenant Charter School Project), Series A, 7%, 5/01/35		1,820		1,218,162
New York City, New York, City IDA, Special Facility Revenue Bonds, AMT:
(American Airlines, Inc.—JFK International Airport), 8%, 8/01/28 (o)		5,000		3,584,750
(Continental Airlines Inc. Project), 7.75%, 8/01/31		22,140		15,221,914
New York Liberty Development Corporation Revenue Bonds (Goldman Sachs Headquarters), 5.25%, 10/01/35		675		546,743

				20,571,569

North Carolina—3.5%
Gaston County, North Carolina, Industrial Facilities and Pollution Control Financing Authority, Revenue Bonds (National Gypsum Company Project), AMT, 5.75%, 8/01/35		12,130		7,113,275
North Carolina Capital Facilities Finance Agency, Revenue Refunding Bonds (Duke University Project), Series B, 4.25%, 7/01/42		11,800		8,601,846

				15,715,121

Ohio—6.0%
American Municipal Power, Inc., Ohio, Revenue Refunding Bonds (Prairie State Energy Campus Project), Series A, 5%, 2/15/38		6,830		5,951,662
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Bonds, Series A-2, 6.50%, 6/01/47		3,120		2,139,197
Ohio State Air Quality Development Authority, Revenue Refunding Bonds (Dayton Power and Light Company Project), Series B, 4.80%, 1/01/34 (m)		18,820		15,870,341
Pinnacle Community Infrastructure Financing Authority, Ohio, Revenue Bonds, Series A, 6.25%, 12/01/36		3,760		2,841,357

				26,802,557

Oklahoma—1.4%
Tulsa, Oklahoma, Municipal Airport Trust, Revenue Refunding Bonds, Series A, 7.75%, 6/01/35 (o)		7,175		6,088,777

Pennsylvania—3.9%
Pennsylvania Economic Development Financing Authority, Exempt Facilities Revenue Bonds, AMT, Series A:
(Amtrak Project), 6.375%, 11/01/41		6,500		5,164,445
(Reliant Energy), 6.75%, 12/01/36 (o)		15,580		10,328,138


See Notes to Financial Statements.


	ANNUAL REPORT	OCTOBER 31, 2008	13




Schedule of Investments (continued)	BlackRock Municipal Income Trust (BFK) (Percentages shown are based on Net Assets)


Municipal Bonds	Par (000)		Value

Pennsylvania (concluded)
Pennsylvania HFA, S/F Mortgage Revenue Refunding Bonds, AMT, Series 97A, 4.60%, 10/01/27	$	2,500	$	1,848,500

				17,341,083

South Carolina—8.0%
Lexington County, South Carolina, Health Services District Inc., Hospital Revenue Refunding and Improvement Bonds (a):
5.50%, 11/01/13		5,000		5,426,400
5.75%, 11/01/13		10,000		10,966,200
Scago Education Facilities Corporation for Chesterfield County School District, South Carolina, Revenue Refunding Bonds, 5%, 12/01/29 (r)		5,345		4,780,514
South Carolina Jobs EDA, Hospital Facilities Revenue Refunding Bonds (Palmetto Health Alliance):
Series A, 6.25%, 8/01/31		5,075		4,377,035
Series C, 6.875%, 8/01/13 (a)		9,000		10,173,657

				35,723,806

Tennessee—2.4%
Knox County, Tennessee, Health, Educational and Housing Facilities Board, Hospital Facilities Revenue Refunding Bonds (Covenant Health), Series A, 5.70%, 1/01/20 (e)(g)		20,825		10,832,124

Texas—16.2%
Brazos River Authority, Texas, PCR, Refunding (TXU Energy Company LLC Project), AMT, Series A, 8.25%, 10/01/30		4,370		3,470,610
Harris County-Houston Sports Authority, Texas, Revenue Refunding Bonds (e)(h):
Junior Lien, Series H, 6.065%, 11/15/35		5,000		682,900
Senior Lien, Series A, 5.832%, 11/15/38		12,580		1,324,171
Third Lien, Series A-3, 5.97%, 11/15/37		26,120		3,044,808
Lower Colorado River Authority, Texas, Revenue Refunding Bonds (h):
5%, 5/15/13 (a)		50		53,675
5%, 5/15/31		2,345		2,152,006
Series A, 5%, 5/15/13 (a)		5		5,368
Lower Colorado River Authority, Texas, Transmission Contract Revenue Refunding Bonds (LCRA Transmission Services Corp. Project), 4.75%, 5/15/34 (f)		13,305		11,329,740
Montgomery County, Texas, Municipal Utility District Number 46, Waterworks and Sewer System, GO, 4.75%, 3/01/30 (h)		1,700		1,507,713
North Texas Tollway Authority, System Revenue Refunding Bonds, Second Tier, Series F, 6.125%, 1/01/31		12,180		11,218,145
San Antonio Energy Acquisition Public Facilities Corporation, Texas, Gas Supply Revenue Bonds, 5.50%, 8/01/25		6,540		4,807,489
Texas State Affordable Housing Corporation, M/F Housing Revenue Bonds (Amern Opportunity Housing Portfolio), Series B, 8%, 3/01/32 (k)(l)		4,435		434,541
Texas State Turnpike Authority, Central Texas Turnpike System Revenue Bonds (f):
6.07%, 8/15/32(e)		35,000		6,550,600
6.08%, 8/15/33(e)		62,325		10,871,350
6.08%, 8/15/34(e)		65,040		10,546,886
First Tier, Series A, 5%, 8/15/42		5,000		4,003,050

				72,003,052

Virginia—0.4%
Virginia Commonwealth Transportation Board, Transportation Contract Revenue Refunding Bonds (U.S. Route 28 Project), 5.287%, 4/01/32 (e)(h)		8,105		1,866,582

Washington—1.6%
King County, Washington, Sewer Revenue Refunding Bonds, 5%, 1/01/36 (g)		3,615		3,253,428
Washington State Health Care Facilities Authority, Revenue Refunding Bonds (Providence Health System), Series A, 4.625%, 10/01/34 (h)(m)		5,095		3,886,364

				7,139,792


Municipal Bonds	Par (000)		Value

West Virginia—0.1%
West Virginia EDA, Lease Revenue Bonds (Correctional, Juvenile and Public Safety Facilities), Series A, 5%, 6/01/29 (h)	$	320	$	297,069

Wisconsin—3.7%
Wisconsin State Health and Educational Facilities Authority Revenue Bonds:
(Aurora Health Care, Inc.), 6.40%, 4/15/33		7,500		6,622,350
(Froedtert and Community Health), 5.375%, 10/01/30		1,205		1,056,604
(Wheaton Franciscan Services, Inc.), 5.75%, 2/15/12 (a)		8,000		8,736,480

				16,415,434

Wyoming—0.5%
Wyoming Community Development Authority, Housing Revenue Bonds, AMT, Series 3, 4.65%, 12/01/27		2,765		2,062,718

Puerto Rico—1.0%
Puerto Rico Commonwealth Highway and Transportation Authority, Transportation Revenue Refunding Bonds, Series N, 5.25%, 7/01/36 (r)		5,000		4,410,800

Total Municipal Bonds—155.7%				693,460,247




Municipal Bonds Transferred to Tender Option Bond Trusts (s)

Alabama—0.8%
Birmingham, Alabama, Special Care Facilities Financing Authority, Revenue Refunding Bonds (Ascension Health Credit), Series C-2, 5%, 11/15/36		4,548		3,733,028

California—0.9%
University of California Revenue Bonds, Series C, 4.75%, 5/15/37 (h)		5,000		4,210,700

Colorado—2.5%
Colorado Health Facilities Authority Revenue Bonds (Catholic Health) (g):
Series C-3, 5.10%, 10/01/41		7,600		6,711,104
Series C-7, 5%, 9/01/36		4,860		4,301,392

				11,012,496

Connecticut—3.9%
Connecticut State Health and Educational Facilities Authority Revenue Bonds (Yale University):
Series T-1, 4.70%, 7/01/29		9,400		8,765,500
Series X-3, 4.85%, 7/01/37		9,360		8,559,533

				17,325,033

Illinois—1.8%
Chicago, Illinois, Housing Authority, Capital Program Revenue Refunding Bonds, 5%, 7/01/24 (g)		8,232		7,835,693

Massachusetts—1.4%
Massachusetts State Water Resource Authority, General Revenue Refunding Bonds, Series A, 5%, 8/01/41		6,770		6,060,775

New York—1.1%
New York State Environmental Facilities Corporation, State Clean Water and Drinking Revenue Bonds (New York City Water Project), Series B, 5%, 6/15/31		5,370		5,031,153


See Notes to Financial Statements.


14	ANNUAL REPORT	OCTOBER 31, 2008




Schedule of Investments (concluded)	BlackRock Municipal Income Trust (BFK) (Percentages shown are based on Net Assets)


Municipal Bonds Transferred to Tender Option Bond Trusts (s)	Par (000)		Value

Virginia—3.7%
University of Virginia, Revenue Refunding Bonds, 5%, 6/01/40	$	10,750	$	10,147,785
Virginia State, HDA, Commonwealth Mortgage Revenue Bonds, Series H, Sub-Series H-1, 5.35%, 7/01/31 (h)		6,810		6,178,849

				16,326,634

Washington—1.1%
Central Puget Sound Regional Transportation Authority, Washington, Sales and Use Tax Revenue Bonds, Series A, 5%, 11/01/32 (g)		5,459		5,002,391

Total Municipal Bonds Transferred to Tender Option Bond Trusts—17.2%				76,537,903

Total Long-Term Investments (Cost—$915,684,683)—172.9%				769,998,150




Short-Term Securities	Shares

Merrill Lynch Institutional Tax-Exempt Fund, 1.63% (t)(u)		1,826,954		1,826,954

Total Short-Term Securities (Cost—$1,826,954)—0.4%				1,826,954

*Total Investments (Cost—$917,511,637)—173.3%**				771,825,104
Other Assets Less Liabilities—3.1%				13,605,565
Liability for Trust Certificates, Including Interest Expense and Fees Payable—(10.5)%				(46,888,087	)
Preferred Shares, at Redemption Value—(65.9)%				(293,254,067	)

Net Assets Applicable to Common Shares—100.0%			$	445,288,515


*	The cost and unrealized appreciation (depreciation) of investments as of October 31, 2008, as computed for federal income tax purposes, were as follows:

	Aggregate cost	$	868,108,315

	Gross unrealized appreciation	$	16,170,054
	Gross unrealized depreciation		(158,842,124	)

	Net unrealized depreciation	$	(142,672,070	)


(a)	U.S. government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(b)	FHLMC Collateralized.
(c)	GNMA Collateralized.
(d)	FNMA Collateralized.
(e)	Represents a zero-coupon bond. Rate shown reflects the effective yield at the time of purchase.
(f)	AMBAC Insured.
(g)	FSA Insured.
(h)	MBIA Insured.
(i)	ACA Insured.
(j)	XL Capital Insured.
(k)	Non-income producing security.
(l)	Issuer filed for bankruptcy and/or is in default of interest payments.
(m)	FGIC Insured.
(n)	Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(o)	Variable rate security. Rate shown is as of report date.
(p)	FHA Insured.
(q)	Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity, and is subject to mandatory redemption at maturity.
(r)	Assured Guaranty Insured.
(s)	Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.
(t)	Represents the current yield as of report date.
(u)	Investments in companies considered to be an affiliate of the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:



	Affiliate	Net Activity			Income

	Merrill Lynch Institutional Tax-Exempt Fund		(773,046	)	$	393,264


•	Forward interest rate swaps outstanding as of October 31, 2008 were as follows:


		Notional Amount (000)			Unrealized Appreciation

	Pay a fixed rate of 3.251% and receive a floating rate based on 1-week SIFMA Municipal Swap Index Rate Broker, JPMorgan Chase Bank N.A. Expires December 2018	$	48,310		$	1,133,787
	Pay a fixed rate of 3.709% and receive a floating rate based on 1-week SIFMA Municipal Swap Index Rate Broker, JPMorgan Chase Bank N.A. Expires January 2024	$	50,000			177,100
	Pay a fixed rate of 3.66% and receive a floating rate based on 1-week SIFMA Municipal Swap Index Rate Broker, Citibank, N.A. Expires December 2028	$	17,160			243,294

	Total				$	1,554,181


See Notes to Financial Statements.


	ANNUAL REPORT	OCTOBER 31, 2008	15




Schedule of Investments October 31, 2008	BlackRock Long-Term Municipal Advantage Trust (BTA) (Percentages shown are based on Net Assets)


Municipal Bonds	Par (000)		Value

Arizona—5.5%
Phoenix and Pima County, Arizona, IDA, S/F Mortgage Revenue Refunding Bonds, AMT, Series 2007-1, 5.25%, 8/01/38 (a)(b)(c)	$	1,982	$	1,714,992
Pima County, Arizona, IDA, Education Revenue Bonds (American Charter Schools Foundation), Series A, 5.625%, 7/01/38		1,700		1,195,372
Pima County, Arizona, IDA, Education Revenue Refunding Bonds (Arizona Charter Schools Project), Series O, 5.25%, 7/01/31		1,000		671,770
Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds:
5%, 12/01/32		1,850		1,153,956
5%, 12/01/37		2,590		1,559,206

				6,295,296

Colorado—3.7%
Colorado HFA, Revenue Refunding Bonds (Adventist Health System/Sunbelt Obligor Group), Series D, 5.125%, 11/15/29 (d)		2,500		2,061,575
Colorado Health Facilities Authority, Revenue Refunding Bonds (Poudre Valley Health Care) (e):
5.20%, 3/01/31		240		224,066
Series B, 5.25%, 3/01/36		485		443,043
Series C, 5.25%, 3/01/40		850		760,342
North Range Metropolitan District Number 2, Colorado, Limited Tax, GO, 5.50%, 12/15/37		1,200		799,980

				4,289,006

District of Columbia—15.3%
District of Columbia Tobacco Settlement Financing Corporation, Asset-Backed Revenue Refunding Bonds:
6.25%, 5/15/24		5,940		5,265,097
6.50%, 5/15/33		15,415		12,191,878

				17,456,975

Florida—4.5%
Jacksonville, Florida, Health Facilities Authority, Hospital Revenue Bonds (Baptist Medical Center Project), Series A, 5%, 8/15/37		845		600,094
Orange County, Florida, Health Facilities Authority, First Mortgage Revenue Bonds (Orlando Lutheran Towers), 5.50%, 7/01/38		1,150		729,778
Sarasota County, Florida, Health Facilities Authority, Retirement Facility Revenue Refunding Bonds (Village on the Isle Project), 5.50%, 1/01/32		520		345,119
Sumter Landing Community Development District, Florida, Recreational Revenue Bonds, Sub-Series B, 5.70%, 10/01/38		1,435		995,632
Tolomato Community Development District, Florida, Special Assessment Bonds, 6.65%, 5/01/40		1,750		1,404,707
Watergrass Community Development District, Florida, Special Assessment Revenue Bonds, Series A,
5.375%, 5/01/39		1,850		1,094,072

				5,169,402

Georgia—1.1%
Main Street Natural Gas, Inc., Georgia, Gas Project Revenue Bonds, Series A, 6.375%, 7/15/38 (f)(g)		585		90,675
Rockdale County, Georgia, Development Authority Revenue Bonds (Visy Paper Project), AMT, Series A, 6.125%, 1/01/34		1,600		1,171,856

				1,262,531


Municipal Bonds (000)	Par (000)		Value

Illinois—5.0%
Illinois State Finance Authority Revenue Bonds (Monarch Landing, Inc. Project), Series A, 7%, 12/01/37	$	580	$	448,091
Illinois State Finance Authority, Revenue Refunding Bonds:
(Illinois Institute of Technology), Series A, 5%, 4/01/36		3,000		2,209,320
(Proctor Hospital), Series A, 5.125%, 1/01/25		4,000		3,077,720

				5,735,131

Indiana—2.4%
Delaware County, Indiana, Hospital Authority, Hospital Revenue Bonds (Cardinal Health System Obligated Group), 5.25%, 8/01/36		2,000		1,326,180
Indiana Health and Educational Facilities Financing Authority, Hospital Revenue Bonds (Community Foundation of Northwest Indiana), 5.50%, 3/01/37		1,985		1,450,598

				2,776,778

Kansas—0.4%
Lenexa, Kansas, Health Care Facility, Revenue Refunding Bonds, 5.50%, 5/15/39		650		429,123

Louisiana—2.5%
Louisiana Local Government Environmental Facilities and Community Development Authority Revenue Bonds (Westlake Chemical Corporation), 6.75%, 11/01/32		2,000		1,513,800
Saint Tammany Parish, Louisiana, Financing Authority, S/F Mortgage Revenue Bonds (Home Ownership Program), Series A, 5.25%, 12/01/39 (a)(b)(c)		1,384		1,327,577

				2,841,377

Maryland—0.7%
Maryland State Health and Higher Educational Facilities Authority Revenue Bonds (King Farm Presbyterian Community), Series B, 5%, 1/01/17		1,000		782,780

Michigan—0.7%
Garden City, Michigan, Hospital Finance Authority, Hospital Revenue Refunding Bonds (Garden City Hospital Obligation), Series A, 5%, 8/15/38		1,540		840,686

Missouri—1.8%
Missouri State Housing Development Commission, S/F Mortgage Revenue Refunding Bonds (Homeownership Loan Program), AMT, Series B-1, 5.05%, 3/01/38 (a)(b)(c)		2,395		2,044,851

Montana—2.1%
Two Rivers Authority Inc., Montana, Senior Lien Revenue Bonds (Correctional Facilities Project):
7.25%, 11/01/21		1,500		902,295
7.375%, 11/01/27		2,600		1,530,880

				2,433,175

New Jersey—6.2%
New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50%, 6/15/24		2,670		2,116,589
Tobacco Settlement Financing Corporation of New Jersey, Asset-Backed Revenue Bonds, 5.75%, 6/01/32		4,630		4,933,219

				7,049,808

New York—9.7%
Nassau County, New York, Tobacco Settlement Corporation, Senior Asset-Backed Revenue Refunding Bonds, Series A-2, 5.25%, 6/01/26 (h)		5,000		3,938,350
New York City, New York, City IDA, Special Facility Revenue Bonds (American Airlines, Inc.—JFK International Airport), AMT, 7.625%, 8/01/25 (d)		7,600		5,345,004
New York City, New York, City Transitional Finance Authority, Building Aid Revenue Refunding Bonds, Series S-1, 4.50%, 1/15/38		370		287,005
New York Liberty Development Corporation Revenue Bonds (Goldman Sachs Headquarters), 5.25%, 10/01/35		1,850		1,498,481

				11,068,840


See Notes to Financial Statements.


16	ANNUAL REPORT	OCTOBER 31, 2008




Schedule of Investments (continued)	BlackRock Long-Term Municipal Advantage Trust (BTA) (Percentages shown are based on Net Assets)


Municipal Bonds	Par (000)		Value

Pennsylvania—1.6%
Allegheny County, Pennsylvania, Hospital Development Authority, Revenue Refunding Bonds (West Penn Allegheny Health System), Series A, 5.375%, 11/15/40	$	2,080	$	1,145,893
Harrisburg, Pennsylvania, Authority, University Revenue Bonds (Harrisburg University of Science), Series A, 5.40%, 9/01/16		465		406,633
Pennsylvania HFA, S/F Mortgage Revenue Refunding Bonds, AMT, Series 97A, 4.60%, 10/01/27		450		332,730

				1,885,256

South Carolina—3.8%
Scago Education Facilities Corporation for Williamsburg County School District, South Carolina, Revenue Refunding Bonds, 5%, 12/01/31 (i)		2,000		1,530,220
South Carolina Jobs, EDA, Health Care Facilities, First Mortgage Revenue Refunding Bonds (Lutheran Homes):
5.50%, 5/01/28		600		412,746
5.625%, 5/01/42		1,000		635,740
South Carolina Jobs, EDA, Senior Lien Revenue Refunding Bonds (Burroughs and Chapin Company, Inc.), Series A, 4.70%, 4/01/35 (i)		2,500		1,776,225

				4,354,931

South Dakota—0.7%
South Dakota State Health and Educational Facilities Authority Revenue Bonds (Sanford Health), 5%, 11/01/40		1,040		820,009

Tennessee—0.6%
Knox County, Tennessee, Health, Educational and Housing Facilities Board, Hospital Facilities Revenue Refunding Bonds (Covenant Health), Series A, 5.02%, 1/01/36 (j)		5,000		639,150

Texas—5.3%
Brazos River Authority, Texas, PCR, Refunding (TXU Energy Company LLC Project), AMT, Series A, 8.25%, 10/01/30		1,500		1,191,285
HFDC of Central Texas, Inc., Retirement Facilities Revenue Bonds (Village at Gleannloch Farms), Series A, 5.50%, 2/15/27		1,150		769,051
North Texas Tollway Authority, System Revenue Refunding Bonds, Second Tier, Series F, 6.125%, 1/01/31		2,290		2,109,159
Texas State Affordable Housing Corporation, S/F Mortgage Revenue Bonds (Professional Educators Home Loan Program), AMT, Series A-1, 5.50%, 12/01/39 (a)(b)(c)		1,227		1,061,158
West Central Texas Regional Housing Finance Corporation, S/F Mortgage Revenue Bonds (Mortgage-Backed Securities Program), AMT, Series A, 5.35%, 12/01/39 (a)(b)(c)		1,135		970,643

				6,101,296

Vermont—1.9%
Vermont HFA, S/F Housing Revenue Bonds, AMT, Series 27, 4.90%, 5/01/38 (d)(e)		3,060		2,157,667

Virginia—2.7%
Fairfax County, Virginia, EDA, Residential Care Facilities, Mortgage Revenue Refunding Bonds (Goodwin House, Inc.), 5.125%, 10/01/42		850		598,493
Peninsula Ports Authority, Virginia, Residential Care Facilities, Revenue Refunding Bonds (Baptist Homes), Series C, 5.375%, 12/01/26		2,600		1,683,214
Reynolds Crossing Community Development Authority, Virginia, Special Assessment Revenue Bonds (Reynolds Crossing Project), 5.10%, 3/01/21		1,000		771,490

				3,053,197

Wisconsin—4.9%
Wisconsin State Health and Educational Facilities Authority Revenue Bonds (Ascension Health), Series A, 5%, 11/15/31		5,335		4,480,600
Wisconsin State Health and Educational Facilities Authority, Revenue Refunding Bonds (Franciscan Sisters Healthcare), 5%, 9/01/26		1,535		1,168,258

				5,648,858


Municipal Bonds	Par (000)		Value

Puerto Rico—0.9%
Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Revenue Bonds (Ana G. Mendez University System Project), 5%, 3/01/36	$	1,500	$	993,660

Total Municipal Bonds—84.0%				96,129,783




Municipal Bonds Transferred to Tender Option Bond Trusts (k)

California—20.3%
Golden State Tobacco Securitization Corporation of California, Tobacco Settlement Revenue Bonds, Custodial Receipts, Series 1271, 5%, 6/01/45	15,000	10,760,400
University of California Revenue Bonds, Series B, 4.75%, 5/15/38 (l)	15,000	12,509,700

		23,270,100

Georgia—11.9%
Atlanta, Georgia, Airport Passenger Facility Charge and Subordinate Lien General Revenue Refunding Bonds, Series C, 5%, 1/01/33 (e)	15,000	13,593,900

Illinois—11.2%
Chicago, Illinois, O’Hare International Airport, General Airport Revenue Bonds, Custodial Receipts, Series 1284, 5%, 1/01/33	15,000	12,859,500

Indiana—10.7%
Carmel, Indiana, Lease Rental Revenue Bonds (Performing Arts Center):
4.75%, 2/01/33	7,230	6,200,737
5%, 2/01/33	6,580	5,986,155

		12,186,892

Massachusetts—8.2%
Massachusetts State, HFA, Housing Revenue Refunding Bonds, AMT, Series D, 5.45%, 6/01/37	11,855	9,389,990

Nebraska—3.7%
Omaha Public Power District, Nebraska, Electric System Revenue Bonds, Sub-Series B, 4.75%, 2/01/36 (m)	5,000	4,207,050

New York—5.9%
New York City, New York, City Municipal Water Finance Authority, Water and Sewer System, Revenue Refunding Bonds, Series D, 5%, 6/15/39	7,500	6,746,175

North Carolina—11.6%
University of North Carolina, University Revenue Refunding Bonds, Series A, 4.75%, 12/01/34	15,170	13,280,425

Texas—7.4%
New Caney, Texas, Independent School District, GO, 5%, 2/15/35	9,150	8,433,738

Total Municipal Bonds Transferred to Tender Option Bond Trusts—90.9%		103,967,770

Total Long-Term Investments (Cost—$255,692,897)—174.9%		200,097,553




Short-Term Securities	Shares

Merrill Lynch Institutional Tax-Exempt Fund, 1.63% (n)(o)		1,100,883		1,100,883

Total Short-Term Securities (Cost—$1,100,883)—1.0%				1,100,883

*Total Investments (Cost—$256,793,780)—175.9%**				201,198,436
Other Assets Less Liabilities—3.5%				4,019,037
Liability for Trust Certificates, Including Interest Expense and Fees Payable—(79.4)%				(90,835,851	)

Net Assets—100.0%			$	114,381,622


See Notes to Financial Statements.


	ANNUAL REPORT	OCTOBER 31, 2008	17




Schedule of Investments (concluded)	BlackRock Long-Term Municipal Advantage Trust (BTA)


*	The cost and unrealized appreciation (depreciation) of investments as of October 31, 2008, as computed for federal income tax purposes, were as follows:


Aggregate cost	$	166,652,245

Gross unrealized appreciation	$	183,706
Gross unrealized depreciation		(55,432,515	)

Net unrealized depreciation	$	(55,248,809	)


(a)	FHLMC Collateralized.
(b)	FNMA Collateralized.
(c)	GNMA Collateralized.
(d)	Variable rate security. Rate shown is as of report date.
(e)	FSA Insured.
(f)	Non-income producing security.
(g)	Issuer filed for bankruptcy and/or is in default of interest payments.
(h)	Represents a step bond. Rate shown reflects the effective yield at the time of purchase.
(i)	Radian Insured.
(j)	Represents a zero-coupon bond. Rate shown reflects the effective yield at the time of purchase.
(k)	Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.
(l)	MBIA Insured.
(m)	FGIC Insured.
(n)	Represents the current yield as of report date.
(o)	Investments in companies considered to be an affiliate of the Trust, for purposes of Section2(a)(3) of the Investment Company Act of 1940, were as follows:



Affiliate	Net Activity			Income

Merrill Lynch Institutional Tax-Exempt Fund		(1,499,117	)	$	70,516


See Notes to Financial Statements.


18	ANNUAL REPORT	OCTOBER 31, 2008




Statements of Assets and Liabilities


October 31, 2008	BlackRock Investment Quality Municipal Trust (BKN)			BlackRock Municipal Income Trust (BFK)			BlackRock Long-Term Municipal Advantage Trust (BTA)
Assets
Investments at value – unaffiliated¹	$	300,756,606		$	769,998,150		$	200,097,553
Investments at value – affiliated²		15,400,000			1,826,954			1,100,883
Cash		96,696			71,839			13,393
Investments sold receivable		1,482,531			469,471			184,191
Unrealized appreciation on forward interest rate swaps		70,840			1,554,181			—
Interest receivable		5,204,310			15,000,509			4,670,299
Other assets		35,005			83,967			8,203
Prepaid expenses		39,837			84,840			29,447

Total assets		323,085,825			789,089,911			206,103,969


Accrued Liabilities
Investments purchased payable		3,676,300			—			—
Interest expense and fees payable		57,976			499,228			1,040,851
Income dividends payable – Common Shares		1,066,555			3,031,661			733,983
Investment advisory fees payable		100,845			369,892			64,602
Administration fees payable		44,097			—			—
Officer’s and Directors’ fees payable		35,842			85,130			9,019
Other affiliates payable		—			5,088			898
Other accrued expenses payable		104,575			167,471			77,994

Total accrued liabilities		5,086,190			4,158,470			1,927,347


Other Liabilities
Trust certificates³		10,807,799			46,388,859			89,795,000

Total Liabilities		15,893,989			50,547,329			91,722,347


Preferred Shares at Redemption Value
Preferred Shares at $0.001 par value per share at $25,000 per share liquidation preference, plus unpaid dividends⁴		127,003,399			293,254,067			—

Net Assets Applicable to Common Shareholders	$	180,188,437		$	445,288,515		$	114,381,622


Net Assets Applicable to Common Shareholders Consist of
Common Shares, par value⁵	$	169,294		$	44,193		$	13,345
Paid-in capital in excess of par		235,139,461			627,829,063			190,776,233
Undistributed net investment income		2,054,424			4,201,196			1,424,388
Accumulated net realized loss		(4,995,163	)		(42,653,585	)		(22,237,000	)
Net unrealized appreciation/depreciation		(52,179,579	)		(144,132,352	)		(55,595,344	)

Net Assets Applicable to Common Shareholders	$	180,188,437		$	445,288,515		$	114,381,622

Net asset value per Common Share⁶	$	10.64		$	10.08		$	8.57

¹Investments at cost – unaffiliated	$	353,007,025		$	915,684,683		$	255,692,897

²Investments at cost – affiliated	$	15,400,000		$	1,826,954		$	1,100,883

³Represents short-term floating rate certificates issued by tender option bond trusts.
⁴Preferred Shares issued and outstanding		5,078			11,725			—

⁵Par value per share	$	0.01		$	0.001		$	0.001

⁶Common Shares outstanding		16,929,437			44,193,305			13,345,152


See Notes to Financial Statements.


	ANNUAL REPORT	OCTOBER 31, 2008	19




Statements of Operations


Year Ended October 31, 2008	BlackRock Investment Quality Municipal Trust (BKN)			BlackRock Municipal Income Trust (BFK)			BlackRock Long-Term Municipal Advantage Trust (BTA)
Investment Income
Interest	$	20,509,132		$	56,097,124		$	16,591,012
Income – affiliated		354,461			399,432			71,287

Total income		20,863,593			56,496,556			16,662,299


Expenses
Investment advisory		1,316,996			5,774,557			1,636,505
Administration		564,204			—			—
Commissions for Preferred Shares		347,310			880,272			—
Professional		118,144			179,845			137,180
Accounting services		54,038			86,049			43,889
Printing		27,479			78,937			14,011
Transfer agent		25,858			38,867			10,953
Custodian		23,482			47,694			19,492
Officer and Directors		5,455			28,051			12,565
Registration		4,363			7,021			4,665
Miscellaneous		9,863			60,732			147,945

Total expenses excluding interest expense and fees		2,497,192			7,182,025			2,027,205
Interest expense and fees¹		246,057			1,041,533			4,534,868

Total expenses		2,743,249			8,223,558			6,562,073
Less fees waived by advisor		(29,489	)		(1,367,742	)		(659,750	)
Less fees paid indirectly		(494	)		(157	)		(676	)

Total expenses after waiver and fees paid indirectly		2,713,266			6,855,659			5,901,647

Net investment income		18,150,327			49,640,897			10,760,652


Realized and Unrealized Gain (Loss)
Net realized loss from:
Investments		(2,405,784	)		(3,543,011	)		(21,132,284	)
Futures and swaps		(1,799,788	)		(6,165,912	)		(1,047,858	)

		(4,205,572	)		(9,708,923	)		(22,180,142	)

Net change in unrealized appreciation/depreciation on:
Investments		(63,161,214	)		(186,236,404	)		(48,663,447	)
Swaps		400,780			1,795,849			111,029

		(62,760,434	)		(184,440,555	)		(48,552,418	)

Total realized and unrealized loss		(66,966,006	)		(194,149,478	)		(70,732,560	)


Dividends to Preferred Shareholders From
Net investment income		(5,278,893	)		(13,027,692	)		—

Net Decrease in Net Assets Applicable to Common Shareholders Resulting from Operations	$	(54,094,572	)	$	(157,536,273	)	$	(59,971,908	)


¹	Related to tender option bond trusts.


See Notes to Financial Statements.


20	ANNUAL REPORT	OCTOBER 31, 2008

Statements of Changes in Net Assets


	BlackRock Investment Quality Municipal Trust (BKN)						BlackRock Municipal Income Trust (BFK)

	Year Ended October 31,						Year Ended October 31,

Increase (Decrease) in Net Assets Applicable to Common Shareholders:	2008			2007			2008			2007

Operations
Net investment income	$	18,150,327		$	18,111,477		$	49,640,897		$	49,131,354
Net realized gain (loss)		(4,205,572	)		288,808			(9,708,923	)		(674,035	)
Net change in unrealized appreciation/depreciation		(62,760,434	)		(13,839,313	)		(184,440,555	)		(27,798,820	)
Dividends and distributions to Preferred Shareholders from:
Net investment income		(5,278,893	)		(5,316,266	)		(13,027,692	)		(13,506,034	)
Net realized gain		—			—			—			(18,029	)

Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations		(54,094,572	)		(755,294	)		(157,536,273	)		7,134,436


Dividends and Distributions to Common Shareholders From
Net investment income		(15,020,485	)		(17,197,915	)		(40,311,763	)		(43,341,822	)
Net realized gain		—			—			—			(57,432	)

Decrease in net assets resulting from dividends and distributions to Common Shareholders		(15,020,485	)		(17,197,915	)		(40,311,763	)		(43,399,254	)


Capital Share Transactions
Reinvestment of common dividends		2,031,105			1,347,346			2,155,812			3,165,968


Net Assets Applicable to Common Shareholders
Total decrease in net assets applicable to Common Shareholders		(67,083,952	)		(16,605,863	)		(195,692,224	)		(33,098,850	)
Beginning of year		247,272,389			263,878,252			640,980,739			674,079,589

End of year	$	180,188,437		$	247,272,389		$	445,288,515		$	640,980,739

End of year undistributed net investment income	$	2,054,424		$	4,209,470		$	4,201,196		$	7,939,545


	BlackRock Long-Term Municipal Advantage Trust (BTA)

	Year Ended October 31,

Increase (Decrease) in Net Assets:	2008			2007

Operations
Net investment income	$	10,760,652		$	9,344,930
Net realized gain (loss)		(22,180,142	)		217,217
Net change in unrealized appreciation/depreciation		(48,552,418	)		(15,541,298	)

Net decrease in net assets resulting from operations		(59,971,908	)		(5,979,151	)


Dividends to Shareholders From
Net investment income		(8,807,800	)		(9,535,364	)


Capital Share Transactions
Reinvestment of common dividends		—			538,721


Net Assets
Total decrease in net assets		(68,779,708	)		(14,975,794	)
Beginning of year		183,161,330			198,137,124

End of year	$	114,381,622		$	183,161,330

End of year undistributed (distributions in excess of) net investment income	$	1,424,388		$	(536,602	)


See Notes to Financial Statements.


	ANNUAL REPORT	OCTOBER 31, 2008	21

Statement of Cash Flows


Year Ended October 31, 2008	BlackRock Long-Term Municipal Advantage Trust (BTA)

Cash Provided by Operating Activities
Net decrease in net assets resulting from operations	$	(59,971,908	)

Adjustments to reconcile net decrease in net assets resulting from operations to net cash provided by operating activities:
Decrease in receivables		1,244,177
Decrease in prepaid expenses and other assets		64,678
Decrease in other liabilities		(1,435,654	)
Net realized and unrealized loss from investments		69,684,702
Amortization of premium and discount on investments		165,318
Proceeds from sales of long-term investments		134,739,522
Purchases of long-term securities		(49,578,990	)
Net proceeds of short-term investments		1,644,266

Net cash provided by operating activities		96,556,111


Cash Used for Financing Activities:
Cash payments for trust certificates		(87,732,503	)
Cash dividends paid		(8,807,800	)
Decrease payable to custodian		(2,415	)

Net cash used for financing activities		(96,542,718	)


Cash
Net increase in cash		13,393
Cash at beginning of year		—

Cash at end of year	$	13,393


Cash Flow Information
Cash paid for interest	$	5,828,635


See Notes to Financial Statements.


22	ANNUAL REPORT	OCTOBER 31, 2008




Financial Highlights	BlackRock Investment Quality Municipal Trust (BKN)


	Year Ended October 31,

	2008			2007			2006			2005			2004
Per Share Operating Performance
Net asset value, beginning of year	$	14.73		$	15.79		$	15.59		$	15.71		$	15.28

Net investment income		1.08	¹		1.08			1.10			1.14			1.17
Net realized and unrealized gain (loss)		(3.97	)		(0.79	)		0.44			(0.11	)		0.26
Dividends to Preferred Shareholders from net investment income		(0.31	)		(0.32	)		(0.28	)		(0.19	)		(0.09	)

Net increase (decrease) from investment operations		(3.20	)		(0.03	)		1.26			0.84			1.34

Dividends to Common Shareholders from net investment income		(0.89	)		(1.03	)		(1.06	)		(0.96	)		(0.91	)

Net asset value, end of year	$	10.64		$	14.73		$	15.79		$	15.59		$	15.71

Market price, end of year	$	10.25		$	16.35		$	18.97		$	16.62		$	15.12


Total Investment Return²
Based on net asset value		(22.93	) %		(0.95	) %		7.38	%		5.34	%		9.48	%

Based on market price		(33.11	) %		(8.49	) %		21.06	%		16.68	%		12.91	%


Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses after waiver and fees paid indirectly and excluding interest expense and fees^3,4		1.07	%		1.07	%		1.09	%		1.08	%		1.08	%

Total expenses after waiver and fees paid indirectly⁴		1.17	%		1.07	%		1.09	%		1.08	%		1.08	%

Total expenses⁴		1.19	%		1.08	%		1.09	%		1.08	%		1.08	%

Net investment income⁴		7.84	%		7.06	%		7.09	%		7.21	%		7.59	%

Dividends to Preferred Shareholders		2.28	%		2.07	%		1.81	%		1.17	%		0.60	%

Net investment income to Common Shareholders		5.56	%		4.99	%		5.28	%		6.04	%		9.66	%


Supplemental Data
Net assets applicable to Common Shareholders, end of year (000)	$	180,188		$	247,272		$	263,878		$	260,494		$	262,475

Preferred Shares outstanding at liquidation preference, end of year (000)	$	126,950		$	146,550		$	146,550		$	146,550		$	146,550

Portfolio turnover		26	%		17	%		82	%		77	%		52	%

Asset coverage per Preferred Share, end of year	$	60,495		$	67,185		$	70,054		$	69,465		$	69,790


¹	Based on average shares outstanding.
²	Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.
³	Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.
⁴	Do not reflect the effects of dividends to Preferred Shareholders.


See Notes to Financial Statements.


	ANNUAL REPORT	OCTOBER 31, 2008	23




Financial Highlights (continued)	BlackRock Municipal Income Trust (BFK)


	Year Ended October 31,

	2008			2007			2006		2005		2004
Per Share Operating Performance
Net asset value, beginning of year	$	14.55		$	15.37		$	14.71	$	14.26	$	13.87

Net investment income		1.12	¹		1.11			1.14		1.18		1.19
Net realized and unrealized gain (loss)		(4.38	)		(0.63	)		0.78		0.43		0.26
Dividends and distributions to Preferred Shareholders from:
Net investment income		(0.30	)		(0.31	)