USAA TAX EXEMPT FUND INC
NSAR-A, 1998-11-20
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<PAGE>      PAGE  1
000 A000000 09/30/98
000 C000000 0000356555
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 A
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
002 D020000 0227
003  000000 N
004  000000 N
005  000000 N
006  000000 N
007 A000000 Y
007 B000000 10
007 C010100  1
007 C020100 LONG-TERM FUND
007 C030100 N
007 C010200  2
007 C020200 INTERMEDIATE-TERM FUND
007 C030200 N
007 C010300  3
007 C020300 SHORT-TERM FUND
007 C030300 N
007 C010400  4
007 C020400 TAX EXEMPT MONEY MARKET FUND
007 C030400 N
007 C010500  5
007 C020500 CALIFORNIA BOND FUND
007 C030500 N
007 C010600  6
007 C020600 CALIFORNIA MONEY MARKET FUND
007 C030600 N
007 C010700  7
007 C020700 NEW YORK BOND FUND
007 C030700 N
007 C010800  8
007 C020800 NEW YORK MONEY MARKET FUND
007 C030800 N
007 C010900  9
007 C020900 VIRGINIA BOND FUND
007 C030900 N
007 C011000 10
<PAGE>      PAGE  2
007 C021000 VIRGINIA MONEY MARKET FUND
007 C031000 N
008 A00AA01 USAA INVESTMENT MANAGEMENT COMPANY
008 B00AA01 A
008 C00AA01 801-34462
008 D01AA01 SAN ANTONIO
008 D02AA01 TX
008 D03AA01 78288
011 A00AA01 USAA INVESTMENT MANAGEMENT COMPANY
011 B00AA01 8-41241
011 C01AA01 SAN ANTONIO
011 C02AA01 TX
011 C03AA01 78288
012 A00AA01 USAA TRANSFER AGENCY COMPANY
012 B00AA01 84-1197
012 C01AA01 SAN ANTONIO
012 C02AA01 TX
012 C03AA01 78288
013 A00AA01 KPMG PEAT MARWICK LLP
013 B01AA01 SAN ANTONIO
013 B02AA01 TX
013 B03AA01 78205
013 B04AA01 1505
014 A00AA01 USAA INVESTMENT MANAGEMENT COMPANY
014 B00AA01 8-41241
015 A00AA01 STATE STREET BANK AND TRUST COMPANY
015 B00AA01 C
015 C01AA01 BOSTON
015 C02AA01 MA
015 C03AA01 02105
015 E01AA01 X
018  00AA00 Y
019 A00AA00 Y
019 B00AA00   42
019 C00AA00 USAAINVMCO
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 CITICORP SECURITIES, INC.
022 B000001 13-2771536
022 C000001    529009
022 D000001    435695
022 A000002 BT ALEX BROWN, INC.
<PAGE>      PAGE  3
022 B000002 13-3311934
022 C000002    375025
022 D000002    356010
022 A000003 PIPER JAFFRAY, INC.
022 B000003 41-0953246
022 C000003    385638
022 D000003    319675
022 A000004 GOLDMAN, SACHS & CO.
022 B000004 13-5108880
022 C000004    491931
022 D000004    109305
022 A000005 SMITH BARNEY, INC.
022 B000005 13-1912900
022 C000005    396421
022 D000005    184340
022 A000006 MERRILL LYNCH, PIERCE, FENNER & SMITH, INC.
022 B000006 13-5674085
022 C000006    348427
022 D000006    199457
022 A000007 PAINEWEBBER, INC.
022 B000007 13-2638166
022 C000007    274064
022 D000007    197682
022 A000008 MORGAN STANLEY & CO., INC.
022 B000008 13-2655998
022 C000008    229502
022 D000008    201490
022 A000009 LEHMAN BROTHERS, INC.
022 B000009 13-2518466
022 C000009    116873
022 D000009    100325
022 A000010 MORGAN (J.P.) SECURITIES, INC.
022 B000010 13-3224016
022 C000010    112579
022 D000010     69678
023 C000000    6235064
023 D000000    4458882
024  00AA00 N
025 D00AA01       0
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026 A000000 N
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026 E000000 N
<PAGE>      PAGE  4
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
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054 F00AA00 N
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054 J00AA00 Y
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067  00AA00 N
068 A00AA00 N
068 B00AA00 N
069  00AA00 N
077 A000000 N
078  000000 N
080 A00AA00 AETNA CASUALTY & SURETY COMPANY
080 C00AA00     9000
081 A00AA00 Y
081 B00AA00  32
<PAGE>      PAGE  5
082 A00AA00 N
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<PAGE>      PAGE  6
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<PAGE>      PAGE  7
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<PAGE>      PAGE  8
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<PAGE>      PAGE  9
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<PAGE>      PAGE  10
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<PAGE>      PAGE  11
070 C010200 N
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070 E010200 N
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<PAGE>      PAGE  12
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<PAGE>      PAGE  13
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<PAGE>      PAGE  14
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<PAGE>      PAGE  15
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<PAGE>      PAGE  16
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<PAGE>      PAGE  17
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<PAGE>      PAGE  18
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<PAGE>      PAGE  19
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<PAGE>      PAGE  20
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<PAGE>      PAGE  21
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<PAGE>      PAGE  22
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<PAGE>      PAGE  23
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<PAGE>      PAGE  24
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<PAGE>      PAGE  25
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<PAGE>      PAGE  26
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<PAGE>      PAGE  27
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<PAGE>      PAGE  28
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<PAGE>      PAGE  29
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<PAGE>      PAGE  31
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<PAGE>      PAGE  32
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<PAGE>      PAGE  34
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<PAGE>      PAGE  35
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<PAGE>      PAGE  36
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<PAGE>      PAGE  37
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<PAGE>      PAGE  38
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SIGNATURE   ALEX M. CICCONE                              
TITLE       ASSISTANT SECRETARY 
 


<TABLE> <S> <C>

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<CIK> 0000356555
<NAME> USAA TAX EXEMPT FUND, INC.
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<TABLE> <S> <C>

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

<TABLE> <S> <C>

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</TABLE>

<TABLE> <S> <C>

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

<TABLE> <S> <C>

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<CIK> 0000356555
<NAME> USAA TAX EXEMPT FUND, INC.
<SERIES>
   <NUMBER> 6
   <NAME> CALIFORNIA MONEY MARKET FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   6-MOS
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<PERIOD-END>                               SEP-30-1998
<INVESTMENTS-AT-COST>                          358,210
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<ACCUMULATED-NET-GAINS>                              0
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<NET-ASSETS>                                   361,739
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                7,282
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                   (810)
<NET-INVESTMENT-INCOME>                          6,472
<REALIZED-GAINS-CURRENT>                             0
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<NET-CHANGE-FROM-OPS>                            6,472
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<NUMBER-OF-SHARES-SOLD>                        205,830
<NUMBER-OF-SHARES-REDEEMED>                  (281,922)
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<NET-CHANGE-IN-ASSETS>                        (70,015)
<ACCUMULATED-NII-PRIOR>                              0
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</TABLE>

<TABLE> <S> <C>

<ARTICLE> 6
<CIK> 0000356555
<NAME> USAA TAX EXEMPT FUND, INC.
<SERIES>
   <NUMBER> 7
   <NAME> NEW YORK BOND FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          MAR-31-1999
<PERIOD-END>                               SEP-30-1998
<INVESTMENTS-AT-COST>                           71,894
<INVESTMENTS-AT-VALUE>                          78,736
<RECEIVABLES>                                    1,159
<ASSETS-OTHER>                                      90
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  79,985
<PAYABLE-FOR-SECURITIES>                             0
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<TOTAL-LIABILITIES>                                177
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        75,658
<SHARES-COMMON-STOCK>                            6,719
<SHARES-COMMON-PRIOR>                            6,076
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                        (2,692)
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                         6,842
<NET-ASSETS>                                    79,808
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                2,133
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                   (185)
<NET-INVESTMENT-INCOME>                          1,948
<REALIZED-GAINS-CURRENT>                            84
<APPREC-INCREASE-CURRENT>                        1,588
<NET-CHANGE-FROM-OPS>                            3,620
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                      (1,948)
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                            900
<NUMBER-OF-SHARES-REDEEMED>                      (380)
<SHARES-REINVESTED>                                123
<NET-CHANGE-IN-ASSETS>                           9,197
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                      (2,776)
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
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<INTEREST-EXPENSE>                                   0
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<PER-SHARE-NAV-BEGIN>                            11.62
<PER-SHARE-NII>                                   0.31
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<RETURNS-OF-CAPITAL>                              0.00
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<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
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          MAR-31-1999
<PERIOD-END>                               SEP-30-1998
<INVESTMENTS-AT-COST>                           61,079
<INVESTMENTS-AT-VALUE>                          61,079
<RECEIVABLES>                                    1,031
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<PAYABLE-FOR-SECURITIES>                             0
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<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        61,914
<SHARES-COMMON-STOCK>                           61,914
<SHARES-COMMON-PRIOR>                           62,226
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<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
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<NET-ASSETS>                                    61,914
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                1,113
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                   (155)
<NET-INVESTMENT-INCOME>                            958
<REALIZED-GAINS-CURRENT>                             0
<APPREC-INCREASE-CURRENT>                            0
<NET-CHANGE-FROM-OPS>                              958
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                        (958)
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                         32,654
<NUMBER-OF-SHARES-REDEEMED>                   (33,877)
<SHARES-REINVESTED>                                911
<NET-CHANGE-IN-ASSETS>                           (312)
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
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<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                    186
<AVERAGE-NET-ASSETS>                            61,916
<PER-SHARE-NAV-BEGIN>                             1.00
<PER-SHARE-NII>                                   0.02
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<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
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          MAR-31-1999
<PERIOD-END>                               SEP-30-1998
<INVESTMENTS-AT-COST>                          345,829
<INVESTMENTS-AT-VALUE>                         373,135
<RECEIVABLES>                                    5,882
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<PAYABLE-FOR-SECURITIES>                         1,694
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<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                       349,938
<SHARES-COMMON-STOCK>                           32,198
<SHARES-COMMON-PRIOR>                           30,142
<ACCUMULATED-NII-CURRENT>                            0
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<ACCUMULATED-NET-GAINS>                          (467)
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<ACCUM-APPREC-OR-DEPREC>                        27,306
<NET-ASSETS>                                   376,777
<DIVIDEND-INCOME>                                    0
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<OTHER-INCOME>                                       0
<EXPENSES-NET>                                   (771)
<NET-INVESTMENT-INCOME>                          9,472
<REALIZED-GAINS-CURRENT>                         (182)
<APPREC-INCREASE-CURRENT>                        7,024
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<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                      (9,472)
<DISTRIBUTIONS-OF-GAINS>                             0
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<NUMBER-OF-SHARES-SOLD>                          2,859
<NUMBER-OF-SHARES-REDEEMED>                    (1,405)
<SHARES-REINVESTED>                                602
<NET-CHANGE-IN-ASSETS>                          30,531
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                        (285)
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                              594
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                    771
<AVERAGE-NET-ASSETS>                           358,103
<PER-SHARE-NAV-BEGIN>                            11.49
<PER-SHARE-NII>                                   0.30
<PER-SHARE-GAIN-APPREC>                           0.21
<PER-SHARE-DIVIDEND>                            (0.30)
<PER-SHARE-DISTRIBUTIONS>                         0.00
<RETURNS-OF-CAPITAL>                              0.00
<PER-SHARE-NAV-END>                              11.70
<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> 10
   <NAME> VIRGINIA MONEY MARKET FUND
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          MAR-31-1999
<PERIOD-END>                               SEP-30-1998
<INVESTMENTS-AT-COST>                          126,097
<INVESTMENTS-AT-VALUE>                         126,097
<RECEIVABLES>                                      886
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<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                 127,257
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
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<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                       126,854
<SHARES-COMMON-STOCK>                          126,854
<SHARES-COMMON-PRIOR>                          122,509
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                                   126,854
<DIVIDEND-INCOME>                                    0
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<OTHER-INCOME>                                       0
<EXPENSES-NET>                                   (325)
<NET-INVESTMENT-INCOME>                          2,077
<REALIZED-GAINS-CURRENT>                             0
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<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                      (2,077)
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<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                         92,202
<NUMBER-OF-SHARES-REDEEMED>                   (89,821)
<SHARES-REINVESTED>                              1,964
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<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
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<INTEREST-EXPENSE>                                   0
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<AVERAGE-NET-ASSETS>                           129,640
<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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