USAA TAX EXEMPT FUND INC
NSAR-A, 1995-11-17
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<PAGE>      PAGE  1
000 A000000 09/30/95
000 C000000 356555
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 U
001 A000000 USAA TAX EXEMPT FUND, INC.
001 B000000 811-3333
001 C000000 2104984876
002 A000000 10750 ROBERT F. MCDERMOTT FREEWAY
002 B000000 SAN ANTONIO
002 C000000 TX
002 D010000 78288
003  000000 N
004  000000 N
005  000000 N
006  000000 N
007 A000000 Y
007 B000000 10
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019 C00AA00 USAAINVMCO
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020 C000007      0
020 C000008      0
020 C000009      0
020 C000010      0
021  000000        0
022 A000001 MERRILL LYNCH PIERCE, FENNER & SMITH INC.
022 B000001 13-5674085
022 C000001    657112
022 D000001     83895
022 A000002 SMITH BARNEY INC.
022 B000002 13-1912900
022 C000002    268150
022 D000002    271549
022 A000003 MORGAN STANLEY & CO. INCORPORATED
022 B000003 13-2655998
022 C000003    307995
022 D000003    138094
022 A000004 PAINEWEBBER INCORPORATED
022 B000004 13-2638166
<PAGE>      PAGE  2
022 C000004    233313
022 D000004    152065
022 A000005 CITICORP SECURITIES INC.
022 B000005 13-2771536
022 C000005    184524
022 D000005    164966
022 A000006 BT SECURITIES CORPORATION
022 B000006 13-3311934
022 C000006    114098
022 D000006    124311
022 A000007 MORGAN J.P. SECURITIES INC.
022 B000007 13-3224016
022 C000007    149199
022 D000007     73203
022 A000008 GOLDMAN, SACHS & CO.
022 B000008 13-5108880
022 C000008     68690
022 D000008    114741
022 A000009 GREENWICH PARTNERS, INC.
022 B000009 13-3176013
022 C000009    105467
022 D000009     61191
022 A000010 SIMON & SONS MUNICIPAL SECURITIES, INC.
022 B000010 22-3017217
022 C000010    134077
022 D000010     31967
023 C000000    5134017
023 D000000    3788376
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<PAGE>      PAGE  3
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<PAGE>      PAGE  6
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<PAGE>      PAGE  7
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<PAGE>      PAGE  13
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SIGNATURE   MICHAEL J.C. ROTH                            
TITLE       PRESIDENT           
 


<TABLE> <S> <C>

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<CIK> 0000356555
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   <NAME> LONG-TERM FUND
       
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</TABLE>

<TABLE> <S> <C>

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<CIK> 0000356555
<NAME> USAA TAX EXEMPT FUND, INC.
<SERIES>
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</TABLE>

<TABLE> <S> <C>

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<CIK> 0000356555
<NAME> USAA TAX EXEMPT FUND, INC.
<SERIES>
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</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000356555
<NAME> USAA TAX EXEMPT FUND, INC.
<SERIES>
   <NUMBER> 4
   <NAME> TAX EXEMPT MONEY MARKET FUND
       
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<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                    842,074,416
<NUMBER-OF-SHARES-REDEEMED>              (872,502,992)
<SHARES-REINVESTED>                         25,054,472
<NET-CHANGE-IN-ASSETS>                     (5,374,104)
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                        2,024,399
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                              2,899,933
<AVERAGE-NET-ASSETS>                     1,445,902,239
<PER-SHARE-NAV-BEGIN>                             1.00
<PER-SHARE-NII>                                   0.02
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<RETURNS-OF-CAPITAL>                              0.00
<PER-SHARE-NAV-END>                               1.00
<EXPENSE-RATIO>                                   0.40
<AVG-DEBT-OUTSTANDING>                               0
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</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000356555
<NAME> USAA TAX EXEMPT FUND, INC.
<SERIES>
   <NUMBER> 5
   <NAME> CALIFORNIA BOND FUND
       
<S>                             <C>
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          MAR-31-1995
<PERIOD-END>                               SEP-30-1995
<INVESTMENTS-AT-COST>                      373,039,975
<INVESTMENTS-AT-VALUE>                     389,381,187
<RECEIVABLES>                                6,251,186
<ASSETS-OTHER>                                 301,170
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                             395,933,543
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                      752,508
<TOTAL-LIABILITIES>                            752,508
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                   388,485,568
<SHARES-COMMON-STOCK>                       38,271,858
<SHARES-COMMON-PRIOR>                       36,918,761
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                    (9,645,745)
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                    16,341,212
<NET-ASSETS>                               395,181,035
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                           12,111,519
<OTHER-INCOME>                                       0
<EXPENSES-NET>                               (824,131)
<NET-INVESTMENT-INCOME>                     11,287,388
<REALIZED-GAINS-CURRENT>                     1,355,830
<APPREC-INCREASE-CURRENT>                    7,111,315
<NET-CHANGE-FROM-OPS>                       19,754,533
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                 (11,287,388)
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                     33,823,962
<NUMBER-OF-SHARES-REDEEMED>               (27,994,143)
<SHARES-REINVESTED>                          8,007,183
<NET-CHANGE-IN-ASSETS>                      22,304,147
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                 (11,001,575)
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                          622,558
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                824,131
<AVERAGE-NET-ASSETS>                       384,135,686
<PER-SHARE-NAV-BEGIN>                            10.10
<PER-SHARE-NII>                                   0.30
<PER-SHARE-GAIN-APPREC>                           0.23
<PER-SHARE-DIVIDEND>                            (0.30)
<PER-SHARE-DISTRIBUTIONS>                         0.00
<RETURNS-OF-CAPITAL>                              0.00
<PER-SHARE-NAV-END>                              10.33
<EXPENSE-RATIO>                                   0.43
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000356555
<NAME> USAA TAX EXEMPT FUND, INC.
<SERIES>
   <NUMBER> 6
   <NAME> CALIFORNIA MONEY MARKET FUND
       
<S>                             <C>
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          MAR-31-1995
<PERIOD-END>                               SEP-30-1995
<INVESTMENTS-AT-COST>                      271,953,070
<INVESTMENTS-AT-VALUE>                     271,953,070
<RECEIVABLES>                                2,366,518
<ASSETS-OTHER>                               1,115,425
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                             275,435,013
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                      777,258
<TOTAL-LIABILITIES>                            777,258
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                   274,657,756
<SHARES-COMMON-STOCK>                      274,657,756
<SHARES-COMMON-PRIOR>                      266,763,583
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                               274,657,756
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                            5,544,282
<OTHER-INCOME>                                       0
<EXPENSES-NET>                               (634,381)
<NET-INVESTMENT-INCOME>                      4,909,901
<REALIZED-GAINS-CURRENT>                             0
<APPREC-INCREASE-CURRENT>                            0
<NET-CHANGE-FROM-OPS>                        4,909,901
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                  (4,909,901)
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                    120,143,566
<NUMBER-OF-SHARES-REDEEMED>              (116,767,912)
<SHARES-REINVESTED>                          4,518,519
<NET-CHANGE-IN-ASSETS>                       7,894,173
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                          438,269
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                634,381
<AVERAGE-NET-ASSETS>                       271,501,876
<PER-SHARE-NAV-BEGIN>                             1.00
<PER-SHARE-NII>                                   0.02
<PER-SHARE-GAIN-APPREC>                           0.00
<PER-SHARE-DIVIDEND>                            (0.02)
<PER-SHARE-DISTRIBUTIONS>                         0.00
<RETURNS-OF-CAPITAL>                              0.00
<PER-SHARE-NAV-END>                               1.00
<EXPENSE-RATIO>                                   0.47
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        


</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000356555
<NAME> USAA TAX EXEMPT FUND, INC.
<SERIES>
   <NUMBER> 7
   <NAME> NEW YORK BOND FUND
       
<S>                             <C>
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          MAR-31-1995
<PERIOD-END>                               SEP-30-1995
<INVESTMENTS-AT-COST>                       50,064,120
<INVESTMENTS-AT-VALUE>                      52,168,361
<RECEIVABLES>                                  791,332
<ASSETS-OTHER>                                  69,833
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                              53,029,526
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                      182,206
<TOTAL-LIABILITIES>                            182,206
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                    54,056,461
<SHARES-COMMON-STOCK>                        4,832,166
<SHARES-COMMON-PRIOR>                        4,690,174
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                    (3,313,382)
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                     2,104,241
<NET-ASSETS>                                52,847,320
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                            1,631,456
<OTHER-INCOME>                                       0
<EXPENSES-NET>                               (128,511)
<NET-INVESTMENT-INCOME>                      1,502,945
<REALIZED-GAINS-CURRENT>                        85,040
<APPREC-INCREASE-CURRENT>                      710,866
<NET-CHANGE-FROM-OPS>                        2,298,851
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                    1,502,945
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                      7,749,662
<NUMBER-OF-SHARES-REDEEMED>                (7,372,726)
<SHARES-REINVESTED>                          1,167,553
<NET-CHANGE-IN-ASSETS>                       2,340,395
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                  (3,398,422)
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                          119,600
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                180,916
<AVERAGE-NET-ASSETS>                        51,472,493
<PER-SHARE-NAV-BEGIN>                            10.77
<PER-SHARE-NII>                                   0.32
<PER-SHARE-GAIN-APPREC>                           0.17
<PER-SHARE-DIVIDEND>                            (0.32)
<PER-SHARE-DISTRIBUTIONS>                         0.00
<RETURNS-OF-CAPITAL>                              0.00
<PER-SHARE-NAV-END>                              10.94
<EXPENSE-RATIO>                                   0.50
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000356555
<NAME> USAA TAX EXEMPT FUND, INC.
<SERIES>
   <NUMBER> 8
   <NAME> NEW YORK MONEY MARKET FUND
       
<S>                             <C>
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          MAR-31-1995
<PERIOD-END>                               SEP-30-1995
<INVESTMENTS-AT-COST>                       33,437,025
<INVESTMENTS-AT-VALUE>                      33,437,025
<RECEIVABLES>                                  190,820
<ASSETS-OTHER>                                 115,992
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                              33,743,837
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                      144,650
<TOTAL-LIABILITIES>                            144,650
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                    33,599,187
<SHARES-COMMON-STOCK>                       33,599,187
<SHARES-COMMON-PRIOR>                       27,525,020
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                                33,599,187
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                              575,541
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                (70,345)
<NET-INVESTMENT-INCOME>                        505,196
<REALIZED-GAINS-CURRENT>                             0
<APPREC-INCREASE-CURRENT>                            0
<NET-CHANGE-FROM-OPS>                          505,196
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                    (505,196)
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                     20,399,245
<NUMBER-OF-SHARES-REDEEMED>               (14,803,466)
<SHARES-REINVESTED>                            478,388
<NET-CHANGE-IN-ASSETS>                       6,074,167
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                           65,574
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                118,831
<AVERAGE-NET-ASSETS>                        28,355,559
<PER-SHARE-NAV-BEGIN>                             1.00
<PER-SHARE-NII>                                   0.02
<PER-SHARE-GAIN-APPREC>                           0.00
<PER-SHARE-DIVIDEND>                            (0.02)
<PER-SHARE-DISTRIBUTIONS>                         0.00
<RETURNS-OF-CAPITAL>                              0.00
<PER-SHARE-NAV-END>                               1.00
<EXPENSE-RATIO>                                   0.50
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000356555
<NAME> USAA TAX EXEMPT FUND, INC.
<SERIES>
   <NUMBER> 9
   <NAME> VIRGINIA BOND FUND
       
<S>                             <C>
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          MAR-31-1995
<PERIOD-END>                               SEP-30-1995
<INVESTMENTS-AT-COST>                      249,669,681
<INVESTMENTS-AT-VALUE>                     257,285,841
<RECEIVABLES>                                4,366,033
<ASSETS-OTHER>                                 156,676
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                             261,808,550
<PAYABLE-FOR-SECURITIES>                     8,600,415
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                      424,644
<TOTAL-LIABILITIES>                          9,025,059
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                   247,956,735
<SHARES-COMMON-STOCK>                       23,162,739
<SHARES-COMMON-PRIOR>                       22,204,381
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                    (2,789,404)
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                     7,616,160
<NET-ASSETS>                               252,783,491
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                            7,760,956
<OTHER-INCOME>                                       0
<EXPENSES-NET>                               (588,192)
<NET-INVESTMENT-INCOME>                      7,172,764
<REALIZED-GAINS-CURRENT>                       124,085
<APPREC-INCREASE-CURRENT>                    3,320,636
<NET-CHANGE-FROM-OPS>                       10,617,485
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                  (7,172,764)
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                     19,619,647
<NUMBER-OF-SHARES-REDEEMED>               (14,634,643)
<SHARES-REINVESTED>                          5,433,730
<NET-CHANGE-IN-ASSETS>                      13,863,455
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                  (2,913,489)
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                          421,801
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                588,192
<AVERAGE-NET-ASSETS>                       245,060,336
<PER-SHARE-NAV-BEGIN>                            10.76
<PER-SHARE-NII>                                   0.32
<PER-SHARE-GAIN-APPREC>                           0.15
<PER-SHARE-DIVIDEND>                            (0.32)
<PER-SHARE-DISTRIBUTIONS>                         0.00
<RETURNS-OF-CAPITAL>                              0.00
<PER-SHARE-NAV-END>                              10.91
<EXPENSE-RATIO>                                   0.48
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000356555
<NAME> USAA TAX EXEMPT FUND, INC.
<SERIES>
   <NUMBER> 10
   <NAME> VIRGINIA MONEY MARKET FUND
       
<S>                             <C>
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          MAR-31-1995
<PERIOD-END>                               SEP-30-1995
<INVESTMENTS-AT-COST>                      101,738,609
<INVESTMENTS-AT-VALUE>                     101,738,609
<RECEIVABLES>                                  743,453
<ASSETS-OTHER>                                 264,531
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                             102,746,593
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                      399,892
<TOTAL-LIABILITIES>                            399,892
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                   102,346,701
<SHARES-COMMON-STOCK>                      102,346,701
<SHARES-COMMON-PRIOR>                       98,048,614
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                               102,346,701
<DIVIDEND-INCOME>                                    0
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<NET-INVESTMENT-INCOME>                      1,760,955
<REALIZED-GAINS-CURRENT>                             0
<APPREC-INCREASE-CURRENT>                            0
<NET-CHANGE-FROM-OPS>                        1,760,955
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                  (1,760,955)
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<NUMBER-OF-SHARES-SOLD>                     45,076,969
<NUMBER-OF-SHARES-REDEEMED>               (42,437,484)
<SHARES-REINVESTED>                          1,658,602
<NET-CHANGE-IN-ASSETS>                       4,298,087
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                          173,954
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                283,659
<AVERAGE-NET-ASSETS>                       101,348,872
<PER-SHARE-NAV-BEGIN>                             1.00
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<EXPENSE-RATIO>                                   0.50
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>


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