<PAGE> PAGE 1
000 B000000 06/30/1999
000 C000000 0000351881
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 6.1
000 J000000 A
001 A000000 ACTIVE ASSETS TAX-FREE TRUST
001 B000000 811-3162
001 C000000 2123922550
002 A000000 TWO WORLD TRADE CENTER
002 B000000 NEW YORK
002 C000000 NY
002 D010000 10048
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 MORGAN STANLEY DEAN WITTER ADVISORS INC.
008 B000001 A
008 C000001 801-42061
008 D010001 NEW YORK
008 D020001 NY
008 D030001 10048
011 A000001 MORGAN STANLEY DEAN WITTER DISTRIBUTORS INC.
011 B000001 8-45262
011 C010001 NEW YORK
011 C020001 NY
011 C030001 10048
012 A000001 MORGAN STANLEY DEAN WITTER TRUST FSB
012 B000001 84-1785
012 C010001 JERSEY CITY
012 C020001 NJ
012 C030001 07311
013 A000001 PRICEWATERHOUSECOOPERS LLP
013 B010001 NEW YORK
013 B020001 NY
<PAGE> PAGE 2
013 B030001 10036
014 A000001 DEAN WITTER REYNOLDS INC.
014 B000001 8-14172
014 A000002 MORGAN STANLEY & CO. INCORPORATED
014 B000002 8-15869
015 A000001 THE BANK OF NEW YORK
015 B000001 C
015 C010001 NEW YORK
015 C020001 NY
015 C030001 10025
015 E010001 X
018 000000 Y
019 A000000 Y
019 B000000 127
019 C000000 MSDW-FUNDS
020 C000001 0
020 C000002 0
020 C000003 0
020 C000004 0
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 0
022 A000001 SALOMON SMITH BARNEY INC.
022 B000001 13-1912900
022 C000001 1404578
022 D000001 495661
022 A000002 MORGAN (J.P.) SECURITIES INC.
022 B000002 13-3224016
022 C000002 1036685
022 D000002 483125
022 A000003 MERRILL LYNCH, PIERCE, FENNER & SMITH INC.
022 B000003 13-5674085
022 C000003 418488
022 D000003 224070
022 A000004 LEHMAN BROTHERS INC.
022 B000004 13-2518466
022 C000004 446490
022 D000004 25665
022 A000005 BT ALEX BROWN INCORPORATED
022 B000005 13-3311934
022 C000005 347731
022 D000005 61416
022 A000006 EDWARDS (A.G.) & SONS, INC.
022 B000006 43-0895447
022 C000006 191900
022 D000006 180500
022 A000007 NUVEEN (JOHN) & CO.INC.
<PAGE> PAGE 3
022 B000007 36-2639476
022 C000007 132775
022 D000007 158640
022 A000008 PAINEWEBBER INC.
022 B000008 13-2638166
022 C000008 93975
022 D000008 29460
022 A000009 PRUDENTIAL SECURITIES INC.
022 B000009 22-2347336
022 C000009 85784
022 D000009 13200
022 A000010 DAIN RAUSCHER INCORPORATED
022 B000010 41-1416330
022 C000010 93287
022 D000010 0
023 C000000 4766122
023 D000000 1855297
024 000000 N
025 D000001 0
025 D000002 0
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 N
026 B000000 Y
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
028 A010000 855426
028 A020000 4310
028 A030000 0
028 A040000 601506
028 B010000 601840
028 B020000 4079
028 B030000 0
028 B040000 527538
028 C010000 594290
028 C020000 5250
028 C030000 0
028 C040000 567836
028 D010000 745914
028 D020000 4938
028 D030000 0
<PAGE> PAGE 4
028 D040000 861244
028 E010000 626729
028 E020000 4783
028 E030000 0
028 E040000 595528
028 F010000 685829
028 F020000 5847
028 F030000 0
028 F040000 685007
028 G010000 4110028
028 G020000 29207
028 G030000 0
028 G040000 3838659
028 H000000 0
029 000000 N
030 A000000 0
030 B000000 0.00
030 C000000 0.00
031 A000000 0
031 B000000 0
032 000000 0
033 000000 0
034 000000 N
035 000000 0
036 B000000 0
037 000000 N
038 000000 0
039 000000 N
040 000000 Y
041 000000 Y
042 A000000 0
042 B000000 0
042 C000000 100
042 D000000 0
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 2159
044 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.000
048 A010000 500000
048 A020000 0.500
048 B010000 250000
048 B020000 0.425
048 C010000 250000
048 C020000 0.375
048 D010000 500000
<PAGE> PAGE 5
048 D020000 0.350
048 E010000 500000
048 E020000 0.325
048 F010000 500000
048 F020000 0.300
048 G010000 500000
048 G020000 0.275
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 3000000
048 K020000 0.250
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 N
054 A000000 Y
054 B000000 Y
054 C000000 Y
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 Y
054 H000000 Y
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 Y
054 M000000 Y
054 N000000 N
054 O000000 N
055 A000000 N
055 B000000 N
056 000000 Y
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 5000
062 A000000 Y
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 105.9
062 F000000 0.0
062 G000000 0.0
<PAGE> PAGE 6
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 62
063 B000000 0.0
064 A000000 Y
064 B000000 N
066 A000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 N
070 B010000 N
070 B020000 N
070 C010000 N
070 C020000 N
070 D010000 N
070 D020000 N
070 E010000 N
070 E020000 N
070 F010000 N
070 F020000 N
070 G010000 N
070 G020000 N
070 H010000 N
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 N
070 J020000 N
070 K010000 N
070 K020000 N
070 L010000 N
070 L020000 N
070 M010000 N
070 M020000 N
070 N010000 Y
070 N020000 N
070 O010000 Y
070 O020000 N
070 P010000 Y
<PAGE> PAGE 7
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 0
071 B000000 0
071 C000000 0
071 D000000 0
072 A000000 12
072 B000000 69966
072 C000000 0
072 D000000 0
072 E000000 0
072 F000000 8443
072 G000000 0
072 H000000 0
072 I000000 338
072 J000000 92
072 K000000 0
072 L000000 70
072 M000000 19
072 N000000 223
072 O000000 0
072 P000000 0
072 Q000000 0
072 R000000 35
072 S000000 32
072 T000000 2159
072 U000000 0
072 V000000 0
072 W000000 30
072 X000000 11441
072 Y000000 92
072 Z000000 58617
072AA000000 29
072BB000000 6
072CC010000 0
072CC020000 0
072DD010000 58617
072DD020000 0
072EE000000 22
073 A010000 0.0269
073 A020000 0.0000
073 B000000 0.0000
073 C000000 0.0000
074 A000000 520
074 B000000 0
074 C000000 2425129
074 D000000 0
074 E000000 0
<PAGE> PAGE 8
074 F000000 0
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 20
074 K000000 0
074 L000000 11759
074 M000000 65
074 N000000 2437493
074 O000000 146457
074 P000000 1018
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 208
074 S000000 0
074 T000000 2289810
074 U010000 2289810
074 U020000 0
074 V010000 1.00
074 V020000 0.00
074 W000000 1.0003
074 X000000 27476
074 Y000000 146458
075 A000000 2189511
075 B000000 0
076 000000 0.00
077 A000000 Y
077 B000000 Y
077 C000000 N
077 D000000 N
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 N
077 K000000 N
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 N
077 P000000 Y
077 Q010000 N
077 Q020000 N
077 Q030000 N
078 000000 N
080 A000000 ICI MUTUAL
080 B000000 CHUBB, RELIANCE, VIGILANT, GULF, AETNA
080 C000000 120000
<PAGE> PAGE 9
081 A000000 Y
081 B000000 126
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
SIGNATURE BARRY FINK
TITLE VICE PRESIDENT
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000351881
<NAME> ACTIVE ASSET TAX-FREE TRUST
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> JUN-30-1999
<INVESTMENTS-AT-COST> 2,425,129,374
<INVESTMENTS-AT-VALUE> 2,425,129,374
<RECEIVABLES> 11,778,956
<ASSETS-OTHER> 584,660
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2,437,492,990
<PAYABLE-FOR-SECURITIES> (146,457,500)
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> (1,225,750)
<TOTAL-LIABILITIES> (147,683,250)
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2,289,800,162
<SHARES-COMMON-STOCK> 2,289,810,262
<SHARES-COMMON-PRIOR> 1,869,392,429
<ACCUMULATED-NII-CURRENT> 9,578
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 2,289,809,740
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 69,966,029
<OTHER-INCOME> 0
<EXPENSES-NET> (11,349,420)
<NET-INVESTMENT-INCOME> 58,616,609
<REALIZED-GAINS-CURRENT> 23,373
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 58,639,982
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (58,616,865)
<DISTRIBUTIONS-OF-GAINS> (22,054)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 7,461,949,724
<NUMBER-OF-SHARES-REDEEMED> (7,100,170,810)
<SHARES-REINVESTED> 58,638,919
<NET-CHANGE-IN-ASSETS> 420,418,896
<ACCUMULATED-NII-PRIOR> 9,834
<ACCUMULATED-GAINS-PRIOR> (1,319)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (8,443,285)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (11,440,881)
<AVERAGE-NET-ASSETS> 2,189,510,921
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 0.27
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> (0.27)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .52
</TABLE>
To the Shareholders and Board of Directors of
XYZ Fund
(2)
Report of Independent Accountants
To the Shareholders and Trustees of
Active Assets Tax-Free Trust
In planning and performing our audit of the financial
statements of Active Assets Tax-Free Trust (the "Trust") for
the year ended June 30, 1999, we considered its internal
control, including controls for safeguarding securities, in
order to determine our auditing procedures for the purpose of
expressing our opinion on the financial statements and to
comply with the requirements of Form N-SAR, not to provide
assurance on internal control.
The management of the Trust is responsible for establishing and
maintaining internal control. In fulfilling this
responsibility, estimates and judgments by management are
required to assess the expected benefits and related costs of
controls. Generally, controls that are relevant to an audit
pertain to the entity's objective of preparing financial
statements for external purposes that are fairly presented in
conformity with generally accepted accounting principles.
Those controls include the safeguarding of assets against
unauthorized acquisition, use or disposition.
Because of inherent limitations in internal control, errors or
fraud may occur and not be detected. Also, projection of any
evaluation of internal control to future periods is subject to
the risk that it may become inadequate because of changes in
conditions or that the effectiveness of the design and
operation may deteriorate.
Our consideration of internal control would not necessarily
disclose all matters in internal control that might be material
weaknesses under standards established by the American
Institute of Certified Public Accountants. A material weakness
is a condition in which the design or operation of one or more
of the internal control components does not reduce to a
relatively low level the risk that misstatements caused by
error or fraud in amounts that would be material in relation to
the financial statements being audited may occur and not be
detected within a timely period by employees in the normal
course of performing their assigned functions. However, we
noted no matters involving internal control and its operation,
including controls for safeguarding securities, that we
consider to be material weaknesses as defined above as of June
30, 1999.
This report is intended solely for the information and use of
management and the Trustees of the Trust and the Securities and
Exchange Commission.
PricewaterhouseCoopers LLP
New York, New York
August 5, 1999
