UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

 

 

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: John M. Perlowski, Chief Executive Officer, BlackRock Municipal Income Trust, 55 East 52nd Street, New York, NY 10055

 

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

 

Date of fiscal year end: 04/30/2013

 

Date of reporting period: 07/31/2012

 

Item 1 – Schedule of Investments

 
 
Schedule of Investments July 31, 2012 (Unaudited)   BlackRock Municipal Income Trust (BFK)
(Percentages shown are based on Net Assets)
Municipal Bonds    Par
(000)		 Value
Alabama — 1.1%      
Alabama State Docks Department,      
Refunding RB, 6.00%, 10/01/40 $   4,080 $ 4,729,740
County of Jefferson Alabama, RB, Series    
A, 5.25%, 1/01/19   2,910 2,913,201
      7,642,941
Arizona — 3.0%      
Salt Verde Financial Corp., RB:      
5.00%, 12/01/32   10,030 10,434,008
5.00%, 12/01/37   9,460 9,819,953
      20,253,961
California — 18.5%      
Bay Area Toll Authority, Refunding RB,    
San Francisco Bay Area, Series F-1,    
5.63%, 4/01/44   4,445 5,145,087
California County Tobacco Securitization    
Agency, RB, CAB, Stanislaus, Sub-      
Series C, 11.01%, 6/01/55 (a)   17,855 181,407
California Health Facilities Financing      
Authority, RB:      
Stanford Hospital and Clinics,      
Series A, 5.00%, 8/15/51   2,305 2,527,986
Sutter Health, Series B,      
6.00%, 8/15/42   6,230 7,482,230
California State Public Works Board, RB,    
Various Capital Projects, Sub-Series 1,    
6.38%, 11/01/34   2,315 2,812,146
California Statewide Communities      
Development Authority, RB, 5.00%,    
4/01/42   4,295 4,701,221
City of Los Angeles Department of      
Airports, Refunding RB, Series A,      
5.25%, 5/15/39   1,560 1,757,730
Foothill Eastern Transportation Corridor    
Agency California, Refunding RB, CAB    
(a):      
6.07%, 1/15/32   54,635 17,070,159
6.09%, 1/15/38   75,000 16,285,500
Foothill-De Anza Community College      
District, GO, Series C, 5.00%,      
8/01/40   7,000 8,097,110
Los Angeles Regional Airports      
Improvement Corp. California,      
Refunding RB, Facilities LAXFUEL      
Corp., LA International, AMT (AMBAC),    
5.50%, 1/01/32   13,320 13,331,322
Murrieta Community Facilities District    
Special Tax California, Special Tax      
Bonds, District No. 2, The Oaks      
Improvement Area A, 6.00%, 9/01/34 5,000 5,075,800
San Marcos Unified School District, GO,    
CAB, Election of 2010, Series B (a):    
4.99%, 8/01/34   3,500 1,183,455
5.12%, 8/01/36   4,000 1,188,800
       
Municipal Bonds    Par
(000)		 Value
California (concluded)      
State of California, GO:      
6.00%, 3/01/33 $ 4,970 $ 6,122,245
6.50%, 4/01/33   20,410 25,493,315
State of California, GO, Refunding,      
5.00%, 10/01/41   5,935 6,476,806
      124,932,319
Colorado — 2.0%      
City of Colorado Springs Colorado, RB,    
Subordinate Lien, Improvement,      
Series C (AGM), 5.00%, 11/15/45 2,115 2,224,747
Colorado Health Facilities Authority,    
Refunding RB:      
Evangelical Lutheran Good      
Samaritan Society Project,      
5.00%, 12/01/42   3,450 3,656,000
Catholic Health, Series A,      
5.50%, 7/01/34   4,205 4,806,315
Park Creek Metropolitan District      
Colorado, Refunding RB, Senior,      
Limited Tax, Property Tax, 5.50%,    
12/01/37   2,530 2,679,118
      13,366,180
Connecticut — 2.3%      
Connecticut State Health & Educational    
Facility Authority, RB, Ascension      
Health Senior Credit, 5.00%,      
11/15/40   2,710 2,984,035
State of Connecticut, GO, Refunding:    
Series C, 5.00%, 6/01/23   6,160 7,772,565
Series C, 5.00%, 6/01/24   3,925 4,906,878
      15,663,478
Delaware — 1.6%      
County of Sussex Delaware, RB, NRG    
Energy, Inc., Indian River Project,    
6.00%, 10/01/40   2,225 2,526,554
Delaware State EDA, RB, Exempt      
Facilities, Indian River Power, 5.38%,    
10/01/45   7,950 8,605,716
      11,132,270
District of Columbia — 4.0%      
District of Columbia Tobacco Settlement    
Financing Corp., Refunding RB, Asset-    
Backed, 6.75%, 5/15/40   23,035 23,495,470
Metropolitan Washington Airports      
Authority, Refunding RB, First Senior    
Lien, Series A:      
5.00%, 10/01/39   990 1,087,307
5.25%, 10/01/44   2,465 2,729,642
      27,312,419

 

BLACKROCK MUNICIPAL INCOME TRUSTJULY 31, 20121
 

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

 

Municipal Bonds    Par
(000)		 Value
Florida — 5.6%      
Citizens Property Insurance Corp., RB,    
Senior Secured, Series A-1:      
5.00%, 6/01/19 $ 5,465 $ 6,276,334
5.00%, 6/01/21   3,330 3,841,621
County of Miami-Dade Florida,      
Refunding RB, Miami International    
Airport, Series A-1, 5.38%, 10/01/41 2,280 2,589,943
Highlands County Florida Health      
Facilities Authority, RB, Series 2006-    
G, 5.13%, 11/15/32 (b)   1,000 1,066,610
Miami Beach Health Facilities Authority,    
RB, Mount Sinai Medical Center of    
Florida, 6.75%, 11/15/21   6,575 7,185,817
Mid-Bay Bridge Authority, RB, Series A,    
7.25%, 10/01/40   4,450 5,616,835
Orange County Health Facilities      
Authority, Refunding RB:      
5.00%, 6/01/32   600 616,344
Mayflower Retirement Center,      
5.00%, 6/01/36   125 127,135
Mayflower Retirement Center,      
5.13%, 6/01/42   1,925 1,979,266
Stevens Plantation Community      
Development District, Special      
Assessment Bonds, Series A, 7.10%,    
5/01/35   3,590 2,692,895
Village Community Development District    
No. 6, Special Assessment Bonds,    
5.63%, 5/01/22   5,575 5,620,715
      37,613,515
Georgia — 1.7%      
DeKalb Private Hospital Authority,      
Refunding RB, Children's Healthcare,    
5.25%, 11/15/39   1,650 1,825,312
Metropolitan Atlanta Rapid Transit      
Authority, RB, Third Series, 5.00%,    
7/01/39   5,000 5,583,900
Richmond County Development      
Authority, Refunding RB, International    
Paper Co. Project, Series A, AMT,    
6.00%, 2/01/25   4,000 4,053,320
      11,462,532
Hawaii — 0.5%      
State of Hawaii, RB, Series A, 5.25%,    
7/01/30   2,660 3,115,685
Illinois — 11.0%      
Chicago Board of Education Illinois, GO,    
Series A, 5.50%, 12/01/39   4,110 4,791,520
Chicago Transit Authority, RB, Sales Tax    
Receipts Revenue, 5.25%, 12/01/40 2,055 2,344,406
City of Chicago Illinois, GO, Project,    
Series A:      
5.00%, 1/01/33   4,435 5,002,591
       
Municipal Bonds    Par
(000)		 Value
Illinois (concluded)      
City of Chicago Illinois, GO, Project,    
Series A (concluded):      
5.00%, 1/01/34 $ 4,430 $ 4,959,031
City of Chicago Illinois, Refunding RB,    
Series A, 5.25%, 1/01/38   1,605 1,842,508
City of Chicago Illinois O'Hare      
International Airport, RB, Third Lien,    
Series C, 6.50%, 1/01/41   11,385 13,977,137
Illinois Finance Authority, RB:      
Advocate Health Care, Series      
C, 5.38%, 4/01/44   10,630 11,712,453
MJH Education Assistance IV      
LLC, Sub-Series B, 5.38%,      
6/01/35 (c)(d)   1,675 167,450
Navistar International      
Recovery Zone, 6.50%,      
10/15/40   1,780 1,840,306
Illinois Finance Authority, Refunding RB:    
5.00%, 11/15/37   1,895 2,110,708
5.00%, 11/15/42   3,450 3,819,668
Central Dupage Health, Series    
B, 5.50%, 11/01/39   3,160 3,557,117
Friendship Village      
Schaumburg, Series A,      
5.63%, 2/15/37   470 471,969
Metropolitan Pier & Exposition Authority,    
Refunding RB, McCormick Place      
Expansion Project (AGM):      
Series B, 5.00%, 6/15/50   3,905 4,223,843
Series B-2, 5.00%, 6/15/50   6,155 6,659,710
Railsplitter Tobacco Settlement      
Authority, RB:      
5.50%, 6/01/23   2,625 3,063,165
6.00%, 6/01/28   2,245 2,612,529
State of Illinois, RB, Build Illinois, Series    
B, 5.25%, 6/15/34   1,240 1,408,764
      74,564,875
Indiana — 1.3%      
City of Vincennes Indiana, Refunding    
RB, Southwest Indiana Regional Youth    
Village, 6.25%, 1/01/24   1,925 1,176,521
Indiana Finance Authority, RB:      
First Lien, CWA Authority,      
Series A, 5.25%, 10/01/38   3,080 3,564,792
Sisters of St. Francis Health,      
5.25%, 11/01/39   1,655 1,818,928
Indiana Municipal Power Agency, RB,    
Series B, 6.00%, 1/01/39   2,150 2,507,502
      9,067,743

 

BLACKROCK MUNICIPAL INCOME TRUSTJULY 31, 20122
 

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

 

Municipal Bonds    Par
(000)		 Value
Iowa — 0.6%      
Iowa Student Loan Liquidity Corp.,      
Refunding RB, Senior Series A-1, AMT,    
5.15%, 12/01/22 $ 3,830 $ 4,321,427
Kansas — 0.5%      
Kansas Development Finance Authority,    
Refunding RB, Sisters of Leavenworth,    
Series A, 5.00%, 1/01/40   3,275 3,573,254
Kentucky — 0.3%      
Kentucky Economic Development      
Finance Authority, RB, Owensboro      
Medical Health System, Series A,      
6.38%, 6/01/40   1,490 1,753,268
Louisiana — 2.9%      
Louisiana Local Government      
Environmental Facilities & Community    
Development Authority, RB, Westlake    
Chemical Corp., Series A-1, 6.50%,    
11/01/35   6,535 7,570,405
Parish of Saint John the Baptist      
Louisiana, RB, Marathon Oil Corp.,      
Series A, 5.13%, 6/01/37   4,340 4,609,210
State of Louisiana Gasoline & Fuels Tax,    
RB, Second Lien, Series B, 5.00%,      
5/01/45   6,355 7,148,295
      19,327,910
Maine — 0.3%      
Maine State Turnpike Authority, RB,      
5.00%, 7/01/42   1,715 1,972,353
Maryland — 1.3%      
Maryland EDC, RB, Transportation      
Facilities Project, Series A, 5.75%,      
6/01/35   855 932,207
Maryland EDC, Refunding RB, CNX      
Marine Terminals, Inc., 5.75%,      
9/01/25   1,760 1,905,147
Maryland Health & Higher Educational    
Facilities Authority, Refunding RB,      
Charlestown Community, 6.25%,      
1/01/41   4,295 4,903,859
Montgomery County Housing      
Opportunities Commission, RB, Series    
D, AMT, 5.50%, 1/01/38   825 868,725
      8,609,938
Massachusetts — 0.6%      
Massachusetts Health & Educational    
Facilities Authority, Refunding RB,      
Partners Healthcare, Series J1,      
5.00%, 7/01/39   3,535 3,853,610
       
Municipal Bonds    Par
(000)		 Value
Michigan — 2.5%      
City of Detroit Michigan Water Supply    
System, RB, Series A, 5.25%,      
7/01/41 $ 6,015 $ 6,311,539
Kalamazoo Hospital Finance Authority,    
Refunding RB, Bronson Methodist      
Hospital, 5.50%, 5/15/36   2,700 2,997,189
Lansing Board of Water & Light Utilities,    
RB, Series A, 5.50%, 7/01/41   2,870 3,400,491
Michigan State Hospital Finance      
Authority, Refunding RB, Henry Ford    
Health System, Series A, 5.25%,      
11/15/46   4,230 4,459,774
      17,168,993
Minnesota — 2.1%      
Tobacco Securitization Authority      
Minnesota, Refunding RB, Series B:    
5.25%, 3/01/25   8,780 10,187,522
5.25%, 3/01/31   3,700 4,162,241
      14,349,763
Mississippi — 2.1%      
City of Gulfport Mississippi, RB,      
Memorial Hospital at Gulfport Project,    
Series A, 5.75%, 7/01/31   14,025 14,045,757
Missouri — 0.3%      
Missouri State Health & Educational      
Facilities Authority, RB, Senior Living    
Facilities, Lutheran Senior Home,      
5.50%, 2/01/42   2,035 2,160,661
Multi-State — 2.6%      
Centerline Equity Issuer Trust, 6.80%,    
10/31/52 (e)(f)   16,000 17,596,160
Nebraska — 1.3%      
Central Plains Energy Project Nebraska,    
RB, Gas Project No. 3:      
5.25%, 9/01/37   1,610 1,708,419
5.00%, 9/01/42   2,815 2,895,763
Douglas County Hospital Authority No. 2,    
RB, Health Facilities, Immanuel      
Obligation Group, 5.63%, 1/01/40 3,280 3,652,411
Lancaster County Hospital Authority No.    
1, Refunding RB, Immanuel Obligation    
Group, 5.63%, 1/01/40   600 668,124
      8,924,717
Nevada — 0.7%      
County of Clark Nevada, Refunding RB,    
Alexander Dawson School Nevada      
Project, 5.00%, 5/15/29   4,550 4,776,772
New Jersey — 7.1%      
Middlesex County Improvement      
Authority, RB, Heldrich Center Hotel,    
Series B, 6.25%, 1/01/37 (c)(d)   3,680 275,963

 

BLACKROCK MUNICIPAL INCOME TRUSTJULY 31, 20123
 

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

 

Municipal Bonds    Par
(000)		 Value
New Jersey (concluded)      
New Jersey EDA, RB, AMT:      
Continental Airlines, Inc.      
Project, 6.25%, 9/15/29 $ 3,000 $ 3,011,970
Continental Airlines, Inc. Project,    
7.00%, 11/15/30 (b)   15,410 15,468,404
New Jersey EDA, Refunding Special    
Assignment, Kapkowski Road Landfill    
Project, 6.50%, 4/01/28   8,000 9,558,720
New Jersey EDA, Cigarette Tax,      
Refunding RB, 5.00%, 6/15/24   1,905 2,158,384
New Jersey Transportation Trust Fund    
Authority, RB:      
Transportation System, Series      
A, 5.50%, 6/15/41   8,000 9,350,560
Series B, 5.25%, 6/15/36   4,810 5,542,130
Tobacco Settlement Financing Corp.    
New Jersey, Refunding RB, Series 1A,    
4.50%, 6/01/23   3,080 2,929,912
      48,296,043
New York — 6.6%      
Albany Industrial Development Agency,    
RB, New Covenant Charter School    
Project, Series A, 7.00%, 5/01/35    
(c)(d)   1,820 409,482
Metropolitan Transportation Authority,    
RB, Series E, 5.00%, 11/15/42   1,055 1,185,830
Metropolitan Transportation Authority,    
Refunding RB, Transportation, Series    
D, 5.25%, 11/15/40   2,375 2,684,439
New York City Industrial Development    
Agency, RB, American Airlines, Inc., JFK    
International Airport, AMT (b)(c)(d):    
7.75%, 8/01/31   22,140 23,579,100
8.00%, 8/01/28   5,000 5,324,900
New York Liberty Development Corp.,    
Refunding RB, Second Priority, Bank    
of America Tower at One Bryant Park    
Project, 6.38%, 7/15/49   2,400 2,737,560
New York State Thruway Authority, RB,    
Series I, 5.00%, 1/01/42   3,465 3,905,471
Port Authority of New York & New      
Jersey, RB, JFK International Air      
Terminal:      
6.00%, 12/01/36   2,525 2,869,182
6.00%, 12/01/42   1,960 2,219,759
      44,915,723
North Carolina — 3.8%      
Gaston County Industrial Facilities &    
Pollution Control Financing Authority    
North Carolina, RB, Exempt Facilities,    
National Gypsum Co. Project, AMT,    
5.75%, 8/01/35   12,130 10,958,363
       
Municipal Bonds    Par
(000)		 Value
North Carolina (concluded)      
North Carolina Capital Facilities Finance    
Agency, RB, Duke University Project,    
Series B, 5.00%, 10/01/38 $ 10,000 $ 11,630,500
North Carolina Medical Care      
Commission, RB, Duke University      
Health System, Series A, 5.00%,      
6/01/42   2,750 3,037,348
      25,626,211
Ohio — 2.9%      
County of Allen Ohio, Refunding RB,      
Catholic Healthcare, Series A, 5.25%,    
6/01/38   6,125 6,769,595
County of Hamilton Ohio, RB, Christ      
Hospital Project, 5.00%, 6/01/42   3,580 3,743,928
County of Montgomery Ohio, Refunding    
RB, Catholic Healthcare, Series A,      
5.00%, 5/01/39   5,450 5,866,108
Pinnacle Community Infrastructure      
Financing Authority, RB, Facilities,      
Series A, 6.25%, 12/01/36   3,760 3,498,379
      19,878,010
Oregon — 0.1%      
City of Tigard Washington County      
Oregon, Refunding RB, Water System,    
5.00%, 8/01/37   495 574,413
Pennsylvania — 0.9%      
Allegheny County Hospital Development    
Authority, Refunding RB, Health      
System, West Penn, Series A, 5.38%,    
11/15/40   2,255 1,841,433
Pennsylvania Economic Development    
Financing Authority, RB, Aqua      
Pennsylvania, Inc. Project, 5.00%,      
11/15/40   3,725 4,155,088
      5,996,521
Puerto Rico — 4.0%      
Puerto Rico Sales Tax Financing Corp.,    
RB:      
CAB, Series A, 5.39%,      
8/01/33 (a)   11,400 3,729,510
CAB, Series A, 5.64%,      
8/01/36 (a)   40,000 10,532,800
First Sub-Series A, 6.50%,      
8/01/44   10,900 13,011,657
      27,273,967
South Carolina — 1.9%      
South Carolina Jobs-EDA, Refunding RB,    
Palmetto Health Alliance, Series A,    
6.25%, 8/01/31   5,075 5,485,872

 

BLACKROCK MUNICIPAL INCOME TRUSTJULY 31, 20124
 

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

 

 Municipal Bonds   Par
(000)		 Value
South Carolina (concluded)      
South Carolina State Ports Authority, RB,    
5.25%, 7/01/40 $ 6,455 $ 7,263,231
      12,749,103
Tennessee — 0.6%      
Knox County Health Educational &      
Housing Facilities Board Tennessee,    
Refunding RB, CAB, Series A (AGM),    
5.54%, 1/01/20 (a)   5,055 3,370,068
Rutherford County Health & Educational    
Facilities Board, RB, 5.00%,      
11/15/47   415 467,489
      3,837,557
Texas — 14.2%      
Brazos River Authority, RB, TXU Electric,    
Series A, AMT, 8.25%, 10/01/30   4,370 492,455
Central Texas Regional Mobility      
Authority, Refunding RB, Senior Lien,    
6.25%, 1/01/46   4,210 4,881,116
City of Austin Texas, Refunding RB,      
Water & Wastewater System      
Revenue, 5.00%, 11/15/37   1,235 1,441,492
City of Dallas Texas, Refunding RB,      
Waterworks & Sewer System      
Revenue, 5.00%, 10/01/35   2,970 3,425,182
City of Houston Texas, Refunding RB:    
Combined First Lien, Series A      
(AGC), 6.00%, 11/15/35   16,425 20,027,824
Senior Lien, Series A, 5.50%,      
7/01/39   3,000 3,369,150
Harris County-Houston Sports Authority,    
Refunding RB (NPFGC) (a):      
CAB, Junior Lien, Series H,      
5.95%, 11/15/35   5,000 1,275,750
CAB, Senior Lien, Series A,      
5.95%, 11/15/38   12,580 2,694,762
Third Lien, Series A-3, 5.94%,      
11/15/37   26,120 5,942,822
Lower Colorado River Authority,      
Refunding RB:      
(NPFGC), 5.00%, 5/15/13 (g)   55 57,077
LCRA Transmission Services      
Project (AMBAC), 4.75%,      
5/15/34   140 140,340
Series A (NPFGC), 5.00%,      
5/15/13 (g)   5 5,189
North Texas Tollway Authority,      
Refunding RB, Toll, Second Tier,      
Series F, 6.13%, 1/01/31   12,180 13,469,497
San Antonio Energy Acquisition Public    
Facility Corp., RB, Gas Supply, 5.50%,    
8/01/25   6,540 7,309,104
Tarrant County Cultural Education      
Facilities Finance Corp., RB, Scott &    
White Healthcare, 6.00%, 8/15/45 7,930 9,369,454
     
    Par  
Municipal Bonds    (000) Value
Texas (concluded)      
Texas Private Activity Bond Surface      
Transportation Corp., RB, Senior Lien:    
Infrastructure, 7.00%, 6/30/40 $ 6,000 $ 7,324,800
NTE Mobility Partners LLC, North      
Tarrant Express Managed Lanes      
Project, 6.88%, 12/31/39   6,500 7,804,290
University of Texas System, Refunding      
RB, Financing System, Series B,      
5.00%, 8/15/43   6,000 7,050,540
      96,080,844
Virginia — 1.8%      
City of Norfolk Virginia, Refunding RB,      
Series B (AMBAC), 5.50%, 2/01/31   2,240 2,242,442
Virginia Small Business Financing Authority,    
RB, Senior Lien, Elizabeth River Crossings    
OPCP LLC Project, AMT:      
5.25%, 1/01/32   3,155 3,413,331
6.00%, 1/01/37   3,580 4,088,754
5.50%, 1/01/42   2,255 2,484,920
      12,229,447
Washington — 1.1%      
Washington Health Care Facilities      
Authority, RB, Swedish Health Services,    
Series A, 6.75%, 5/15/21 (g)   3,900 5,439,564
Washington Health Care Facilities      
Authority, Refunding RB, Providence    
Health & Services, Series A, 5.00%,      
10/01/42   1,980 2,208,809
      7,648,373
Wisconsin — 2.1%      
Wisconsin Health & Educational      
Facilities Authority, RB:      
Ascension Health Senior Care      
Group, 5.00%, 11/15/30   3,210 3,591,701
Ascension Health Senior Care      
Group, 5.00%, 11/15/33   1,640 1,818,120
Aurora Health, Senior Credit      
Group, 6.40%, 4/15/33   7,500 7,652,400
Wisconsin Health & Educational      
Facilities Authority, Refunding RB,      
Froedtert & Community Health, Inc.,      
5.38%, 10/01/30   1,205 1,209,266
      14,271,487
Total Municipal Bonds – 117.8%     797,940,200
 

 

BLACKROCK MUNICIPAL INCOME TRUSTJULY 31, 20125
 

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

 

    Par
(000)		 Value
Municipal Bonds Transferred to      
Tender Option Bond (TOB) Trusts (h)    
Alabama — 0.7%      
Alabama Special Care Facilities      
Financing Authority-Birmingham,      
Refunding RB, Ascension Health      
Senior Credit Group, Series C-2,      
5.00%, 11/15/36 $ 4,548 $ 4,819,385
Arizona — 0.8%      
Salt River Project Agricultural      
Improvement & Power District, RB,    
Series A, 5.00%, 1/01/38   4,760 5,289,986
California — 9.5%      
California Educational Facilities      
Authority, RB, University of Southern    
California, Series B, 5.25%, 10/01/39 5,115 5,987,363
City of Los Angeles California      
Department of Airports, Refunding RB,    
Senior, Los Angeles International      
Airport, Series A, 5.00%, 5/15/40   11,679 13,108,791
Los Angeles Community College District    
California, GO, Election of 2001,      
Series A (AGM), 5.00%, 8/01/32   4,500 5,073,030
San Diego Community College District    
California, GO, Election of 2002,      
5.25%, 8/01/33   3,260 3,823,898
San Francisco City & County Public      
Utilities Commission, RB, Series B,    
5.00%, 11/01/39   18,540 20,849,157
University of California, RB:      
Limited Project, Series B,      
4.75%, 5/15/38   9,838 10,286,185
Series C (NPFGC), 4.75%,      
5/15/37   5,000 5,197,750
      64,326,174
Colorado — 2.0%      
Colorado Health Facilities Authority, RB,    
Catholic Health:      
Series C-3 (AGM), 5.10%,      
10/01/41   7,600 8,117,256
Series C-7, 5.00%, 9/01/36   4,860 5,197,284
      13,314,540
Connecticut — 3.2%      
Connecticut State Health & Educational    
Facility Authority, RB, Yale University:    
Series T-1, 4.70%, 7/01/29   9,400 10,729,348
Series X-3, 4.85%, 7/01/37   9,360 10,709,712
      21,439,060
Florida — 1.1%      
County of Miami-Dade Florida, RB,      
Water & Sewer System, 5.00%,      
10/01/34   6,629 7,460,083
       
    Par
(000)		 Value
Municipal Bonds Transferred to      
Tender Option Bond (TOB) Trusts (h)    
Illinois — 0.9%      
City of Chicago Illinois, Refunding RB,    
5.00%, 11/01/42 $ 5,617 $ 6,394,907
Maryland — 1.3%      
Maryland Health & Higher Educational    
Facilities Authority, Refunding RB,      
5.00%, 11/15/51   8,139 9,044,757
Massachusetts — 2.6%      
Massachusetts School Building Authority,    
RB, Senior Series B, 5.00%, 10/15/41 8,860 10,237,198
Massachusetts Water Resources      
Authority, Refunding RB, General,      
Series A, 5.00%, 8/01/41   6,770 7,616,453
      17,853,651
Michigan — 0.9%      
Detroit Water and Sewerage Department,    
Refunding RB, Senior Lien, Series A:    
5.00%, 7/01/32   3,063 3,221,346
5.25%, 7/01/39   2,649 2,793,267
      6,014,613
New Hampshire — 0.7%      
New Hampshire Health & Education      
Facilities Authority, RB, Dartmouth      
College, 5.25%, 6/01/39   3,988 4,759,312
New York — 13.2%      
Hudson New York Yards Infrastructure    
Corp., Senior RB, Senior Series A,      
5.75%, 2/15/47   3,130 3,668,268
New York City Municipal Water Finance    
Authority, Refunding RB:      
Series FF-2, 5.50%, 6/15/40   3,074 3,621,343
Water & Sewer System, Second      
General Resolution, Series HH,    
5.00%, 6/15/31   16,393 19,278,744
New York City Transitional Finance      
Authority, Future Tax Secured      
Revenue, Sub-Series E-1, RB, 5.00%,    
2/01/42   4,799 5,540,152
New York Liberty Development Corp.,    
RB, 1 World Trade Center Port      
Authority Construction, 5.25%,      
12/15/43   20,865 24,066,734
New York Liberty Development Corp.,    
Refunding RB, 4 World Trade Center    
Project, 5.75%, 11/15/51   12,610 14,919,521
New York State Dormitory Authority,      
ERB, Series F, 5.00%, 3/15/35   16,708 18,178,369
      89,273,131

 

BLACKROCK MUNICIPAL INCOME TRUSTJULY 31, 20126
 

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

 

    Par
(000)		 Value
Municipal Bonds Transferred to      
Tender Option Bond (TOB) Trusts (h)    
Texas — 1.1%      
Harris County Texas Metropolitan      
Transit Authority, Refunding RB,      
Series A, 5.00%, 11/01/41 $ 6,650 $ 7,612,986
Utah — 1.2%      
City of Riverton Utah, RB, IHC Health    
Services Inc., 5.00%, 8/15/41   7,153 7,817,434
Virginia — 1.8%      
University of Virginia, Refunding RB,      
General, 5.00%, 6/01/40   10,767 12,386,412
Washington — 3.4%      
Central Puget Sound Regional Transit    
Authority, RB, Series A (AGM), 5.00%,    
11/01/32   5,459 6,224,447
State of Washington, GO, Various      
Purpose, Series E, 5.00%, 2/01/34 14,487 16,704,362
      22,928,809
Total Municipal Bonds Transferred to    
Tender Option Bond (TOB) Trusts – 44.4% 300,735,240
Total Long-Term Investments      
(Cost – $1,013,946,237) – 162.2%   1,098,675,440
 
 
    Shares    
Short-Term Securities      
FFI Institutional Tax-Exempt Fund, 0.01%,      
8/01/12 (i)(j)   4,373,429 4,373,429
Total Short-Term Securities      
(Cost – $4,373,429) – 0.7%     4,373,429
Total Investments (Cost - $1,018,319,666*) – 162.9% 1,103,048,869
Other Assets Less Liabilities – 1.1%     7,421,667
Liability for TOB Trust Certificates, Including Interest  
Expense and Fees Payable – (24.0)%   (162,304,970)
VMTP Shares, at Liquidation Value – (40.0)%   (270,800,000)
Net Assets Applicable to Common Shares – 100.0% $ 677,365,566

 

* At July 31, 2012, gross unrealized appreciation and gross unrealized depreciation as computed for federal income tax purposes, were as follows:
 
Tax cost       $ 856,181,407 
Gross unrealized appreciation $ 98,965,063 
Gross unrealized depreciation   (14,317,517)
Net unrealized appreciation $ 84,647,546 

 

(a)Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(b)Variable rate security. Rate shown is as of report date.
(c)Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(d)Non-income producing security.
(e)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.
(f)Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(g)US 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.
(h)Securities represent bonds transferred to a TOB in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction.
(i)Investments in companies considered to be an affiliate of the Trust during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
Affiliate Shares
Held at
April 30, 2012		 Net
Activity		 Shares
Held at
July 31, 2012		 Income
FFI Institutional        
Tax-Exempt        
Fund 12,181,066 (7,807,637) 4,373,429 $918

 

(j)Represents the current yield as of report date.
Portfolio Abbreviations 
To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list: 
   
AGC Assured Guaranty Corp.
AGM Assured Guaranty Municipal Corp.
AMBAC American Municipal Bond Assurance Corp.
AMT Alternative Minimum Tax (subject to)
CAB Capital Appreciation Bonds
EDA Economic Development Authority
EDC Economic Development Corp.
ERB Education Revenue Bonds
GO General Obligation Bonds
NPFGC National Public Finance Guarantee Corp.
RB Revenue Bonds

 

BLACKROCK MUNICIPAL INCOME TRUSTJULY 31, 20127
 

Schedule of Investments July 31, 2012 (concluded)   
BlackRock Municipal Income Trust (BFK)

 

•Fair Value Measurements - Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows:
•Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities
•Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
•Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust's own assumptions used in determining the fair value of investments)

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust's policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust's policy regarding valuation of investments and other significant accounting policies, please refer to the Trust's most recent financial statements as contained in its annual report.

The following table summarizes the Trust's investments categorized in the disclosure hierarchy as of July 31, 2012:

  Level 1 Level 2 Level 3 Total
Assets:        
Investments:        
Long-Term        
Investments1             — $1,098,675,440 — $1,098,675,440
Short-Term        
securities $4,373,429                    — —         4,373,429
Total $4,373,429 $1,098,675,440 — $1,103,048,869

 

1See above Schedule of Investments for values in each state or political subdivision.

Certain of the Trust’s liabilities are held at carrying amount, which approximates fair value for financial reporting purposes. As of July 31, 2012, such liabilities are categorized within the disclosure hierarchy as follows:

  Level 1 Level 2 Level 3 Total
Liabilities:        
TOB trust        
certificates  — $(162,219,916) — $(162,219,916)
VMTP        
Shares  —   (270,800,000) —   (270,800,000)
Total  — $(433,019,916) — $(433,019,916)

 

There were no transfers between levels during the period ended July 31, 2012.

BLACKROCK MUNICIPAL INCOME TRUSTJULY 31, 20128
 

Item 2 – Controls and Procedures

2(a) –    The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the ″1940 Act″)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.

2(b) –    There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.

Item 3 – Exhibits

  Certifications – Attached hereto

  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.

 

BlackRock Municipal Income Trust

 

  By: /s/ John M. Perlowski
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock Municipal Income Trust

 

Date: September 25, 2012

 

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/ John M. Perlowski
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock Municipal Income Trust

 

Date: September 25, 2012

 

  By: /s/ Neal J. Andrews
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock Municipal Income Trust

 

Date: September 25, 2012