<PAGE> PAGE 1
000 A000000 08/31/99
000 C000000 0000733257
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 THE VALUE LINE TAX EXEMPT FUND, INC.
001 B000000 811-3904
001 C000000 2129071500
002 A000000 220 E. 42ND STREET
002 B000000 NEW YORK
002 C000000 NY
002 D010000 10017
002 D020000 5891
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 Y
007 B000000 2
007 C010100 1
007 C020100 NATIONAL BOND PORTFOLIO
007 C030100 N
007 C010200 2
007 C020200 MONEY MARKET PORTFOLIO
007 C030200 N
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 A00AA01 VALUE LINE, INC.
008 B00AA01 A
008 C00AA01 801-625
008 D01AA01 NYC
008 D02AA01 NY
008 D03AA01 10017
008 D04AA01 5891
011 A00AA01 VALUE LINE SECURITIES, INC.
011 B00AA01 8-848
011 C01AA01 NYC
011 C02AA01 NY
011 C03AA01 10017
011 C04AA01 5891
012 A00AA01 STATE STREET BANK AND TRUST COMPANY C/O NFDS
<PAGE> PAGE 2
012 B00AA01 84-1
012 C01AA01 KANSAS CITY
012 C02AA01 MO
012 C03AA01 64141
012 C04AA01 6729
013 A00AA01 PRICEWATERHOUSECOOPERS LLC
013 B01AA01 NYC
013 B02AA01 NY
013 B03AA01 10036
014 A00AA01 VALUE LINE SECURITIES, INC.
014 B00AA01 8-848
015 A00AA01 STATE STREET BANK AND TRUST COMPANY
015 B00AA01 C
015 C01AA01 BOSTON
015 C02AA01 MA
015 C03AA01 02110
015 E01AA01 X
018 00AA00 Y
019 A00AA00 Y
019 B00AA00 16
019 C00AA00 VALULINEFD
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 11-2418191
022 C000001 52597
022 D000001 27934
022 A000002 GOLDMAN, SACHS & CO.
022 B000002 13-5108880
022 C000002 47222
022 D000002 20141
022 A000003 ABN AMRO INC.
022 B000003 13-3227845
022 C000003 12131
022 D000003 13928
022 A000004 PAINEWEBBER INC.
022 B000004 13-2638166
022 C000004 8065
022 D000004 11544
022 A000005 LEHMAN BROTHERS INC.
022 B000005 13-2518466
022 C000005 11277
<PAGE> PAGE 3
022 D000005 6644
022 A000006 SEATTLE NORTHWEST SECURITIES CORP.
022 B000006 91-1172183
022 C000006 0
022 D000006 15212
022 A000007 FIRST ALBANY CORP.
022 B000007 14-1391446
022 C000007 1976
022 D000007 10573
022 A000008 COMMERCE CAPITAL MARKETS INC.
022 B000008 23-2177819
022 C000008 0
022 D000008 11613
022 A000009 EVEREN SECURITIES INC.
022 B000009 34-1542819
022 C000009 10004
022 D000009 1470
022 A000010 DAIN RAUCHSER INC.
022 B000010 41-0212020
022 C000010 6359
022 D000010 4766
023 C000000 226563
023 D000000 223918
024 00AA00 N
025 D00AA01 0
025 D00AA02 0
025 D00AA03 0
025 D00AA04 0
025 D00AA05 0
025 D00AA06 0
025 D00AA07 0
025 D00AA08 0
026 A000000 N
026 B000000 Y
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 Y
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
029 00AA00 N
030 A00AA00 0
030 B00AA00 0.00
030 C00AA00 0.00
031 A00AA00 0
031 B00AA00 0
032 00AA00 0
033 00AA00 0
034 00AA00 N
<PAGE> PAGE 4
035 00AA00 0
036 B00AA00 0
037 00AA00 N
038 00AA00 0
039 00AA00 N
040 00AA00 N
041 00AA00 N
042 A00AA00 0
042 B00AA00 0
042 C00AA00 0
042 D00AA00 0
042 E00AA00 0
042 F00AA00 0
042 G00AA00 0
042 H00AA00 0
043 00AA00 0
044 00AA00 0
045 00AA00 Y
046 00AA00 N
047 00AA00 Y
048 00AA00 0.500
048 A01AA00 0
048 A02AA00 0.000
048 B01AA00 0
048 B02AA00 0.000
048 C01AA00 0
048 C02AA00 0.000
048 D01AA00 0
048 D02AA00 0.000
048 E01AA00 0
048 E02AA00 0.000
048 F01AA00 0
048 F02AA00 0.000
048 G01AA00 0
048 G02AA00 0.000
048 H01AA00 0
048 H02AA00 0.000
048 I01AA00 0
048 I02AA00 0.000
048 J01AA00 0
048 J02AA00 0.000
048 K01AA00 0
048 K02AA00 0.000
049 00AA00 N
050 00AA00 N
051 00AA00 N
052 00AA00 N
053 A00AA00 N
054 A00AA00 Y
054 B00AA00 Y
054 C00AA00 Y
<PAGE> PAGE 5
054 D00AA00 N
054 E00AA00 N
054 F00AA00 N
054 G00AA00 N
054 H00AA00 Y
054 I00AA00 N
054 J00AA00 Y
054 K00AA00 N
054 L00AA00 N
054 M00AA00 Y
054 N00AA00 N
054 O00AA00 N
055 A00AA00 N
055 B00AA00 N
056 00AA00 Y
057 00AA00 N
058 A00AA00 N
058 B00AA00 N
058 C00AA00 N
058 D00AA00 N
058 E00AA00 N
059 00AA00 Y
060 A00AA00 Y
060 B00AA00 Y
061 00AA00 1000
066 A00AA00 N
067 00AA00 N
068 A00AA00 N
068 B00AA00 N
069 00AA00 N
070 A01AA00 Y
070 A02AA00 N
070 B01AA00 N
070 B02AA00 N
070 C01AA00 N
070 C02AA00 N
070 D01AA00 N
070 D02AA00 N
070 E01AA00 N
070 E02AA00 N
070 F01AA00 N
070 F02AA00 N
070 G01AA00 N
070 G02AA00 N
070 H01AA00 N
070 H02AA00 N
070 I01AA00 N
070 I02AA00 N
070 J01AA00 Y
070 J02AA00 Y
070 K01AA00 N
<PAGE> PAGE 6
070 K02AA00 N
070 L01AA00 N
070 L02AA00 N
070 M01AA00 N
070 M02AA00 N
070 N01AA00 Y
070 N02AA00 N
070 O01AA00 N
070 O02AA00 N
070 P01AA00 N
070 P02AA00 N
070 Q01AA00 N
070 Q02AA00 N
070 R01AA00 N
070 R02AA00 N
077 A000000 Y
077 B000000 N
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 N
077 Q010000 Y
077 Q020000 N
077 Q030000 N
078 000000 N
080 A00AA00 VIGILANT INSURANCE COMPANY
080 C00AA00 10000
081 A00AA00 Y
081 B00AA00 28
082 A00AA00 Y
082 B00AA00 100
083 A00AA00 N
083 B00AA00 0
084 A00AA00 N
084 B00AA00 0
085 A00AA00 Y
085 B00AA00 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
<PAGE> PAGE 7
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
086 A01AA00 0
086 A02AA00 0
086 B01AA00 0
086 B02AA00 0
086 C01AA00 0
086 C02AA00 0
086 D01AA00 0
086 D02AA00 0
086 E01AA00 0
086 E02AA00 0
086 F01AA00 0
086 F02AA00 0
028 A010100 2427
028 A020100 455
028 A030100 0
028 A040100 4073
028 B010100 287
028 B020100 433
028 B030100 0
028 B040100 2591
028 C010100 366
028 C020100 391
028 C030100 0
028 C040100 1359
028 D010100 236
028 D020100 473
028 D030100 0
028 D040100 1330
028 E010100 1283
028 E020100 405
028 E030100 0
028 E040100 2037
028 F010100 1949
028 F020100 440
028 F030100 0
028 F040100 3078
028 G010100 6548
028 G020100 2597
028 G030100 0
028 G040100 14469
028 H000100 0
062 A000100 Y
062 B000100 0.0
<PAGE> PAGE 8
062 C000100 0.0
062 D000100 0.0
062 E000100 5.6
062 F000100 0.0
062 G000100 0.0
062 H000100 0.0
062 I000100 0.0
062 J000100 0.0
062 K000100 0.0
062 L000100 0.0
062 M000100 0.0
062 N000100 0.0
062 O000100 95.0
062 P000100 0.0
062 Q000100 0.0
062 R000100 0.0
063 A000100 0
063 B000100 20.8
064 A000100 N
064 B000100 N
071 A000100 191088
071 B000100 189248
071 C000100 165911
071 D000100 114
072 A000100 6
072 B000100 4494
072 C000100 0
072 D000100 0
072 E000100 0
072 F000100 440
072 G000100 0
072 H000100 0
072 I000100 27
072 J000100 8
072 K000100 6
072 L000100 22
072 M000100 4
072 N000100 6
072 O000100 1
072 P000100 0
072 Q000100 0
072 R000100 20
072 S000100 3
072 T000100 0
072 U000100 0
072 V000100 0
072 W000100 13
072 X000100 550
072 Y000100 0
072 Z000100 3944
072AA000100 0
<PAGE> PAGE 9
072BB000100 2609
072CC010100 0
072CC020100 6874
072DD010100 3992
072DD020100 0
072EE000100 0
073 A010100 0.2400
073 A020100 0.0000
073 B000100 0.0000
073 C000100 0.0000
074 A000100 1675
074 B000100 0
074 C000100 9300
074 D000100 158836
074 E000100 0
074 F000100 0
074 G000100 0
074 H000100 0
074 I000100 0
074 J000100 4036
074 K000100 0
074 L000100 1891
074 M000100 0
074 N000100 175738
074 O000100 8111
074 P000100 71
074 Q000100 0
074 R010100 0
074 R020100 0
074 R030100 0
074 R040100 393
074 S000100 0
074 T000100 167163
074 U010100 16353
074 U020100 0
074 V010100 10.22
074 V020100 0.00
074 W000100 0.0000
074 X000100 3668
074 Y000100 0
075 A000100 0
075 B000100 174837
076 000100 0.00
028 A010200 703
028 A020200 28
028 A030200 0
028 A040200 394
028 B010200 362
028 B020200 25
028 B030200 0
028 B040200 830
<PAGE> PAGE 10
028 C010200 663
028 C020200 25
028 C030200 0
028 C040200 598
028 D010200 499
028 D020200 32
028 D030200 0
028 D040200 845
028 E010200 505
028 E020200 25
028 E030200 0
028 E040200 579
028 F010200 583
028 F020200 29
028 F030200 0
028 F040200 1343
028 G010200 3315
028 G020200 164
028 G030200 0
028 G040200 4589
028 H000200 0
062 A000200 Y
062 B000200 0.0
062 C000200 0.0
062 D000200 0.0
062 E000200 95.8
062 F000200 0.0
062 G000200 0.0
062 H000200 0.0
062 I000200 0.0
062 J000200 0.0
062 K000200 0.0
062 L000200 0.0
062 M000200 0.0
062 N000200 0.0
062 O000200 0.0
062 P000200 0.0
062 Q000200 0.0
062 R000200 0.0
063 A000200 31
063 B000200 0.0
071 A000200 0
071 B000200 0
071 C000200 0
071 D000200 0
072 A000200 6
072 B000200 256
072 C000200 0
072 D000200 0
072 E000200 0
072 F000200 38
<PAGE> PAGE 11
072 G000200 0
072 H000200 0
072 I000200 10
072 J000200 1
072 K000200 2
072 L000200 5
072 M000200 4
072 N000200 5
072 O000200 1
072 P000200 0
072 Q000200 0
072 R000200 14
072 S000200 2
072 T000200 0
072 U000200 0
072 V000200 0
072 W000200 11
072 X000200 93
072 Y000200 0
072 Z000200 163
072AA000200 0
072BB000200 6
072CC010200 0
072CC020200 0
072DD010200 164
072DD020200 0
072EE000200 0
073 A010200 0.0200
073 A020200 0.0000
073 B000200 0.0000
073 C000200 0.0000
074 A000200 53
074 B000200 0
074 C000200 13546
074 D000200 0
074 E000200 0
074 F000200 0
074 G000200 0
074 H000200 0
074 I000200 0
074 J000200 700
074 K000200 0
074 L000200 120
074 M000200 0
074 N000200 14419
074 O000200 0
074 P000200 6
074 Q000200 0
074 R010200 0
074 R020200 0
074 R030200 0
<PAGE> PAGE 12
074 R040200 267
074 S000200 0
074 T000200 14146
074 U010200 14184
074 U020200 0
074 V010200 1.00
074 V020200 0.00
074 W000200 0.9973
074 X000200 958
074 Y000200 0
075 A000200 15134
075 B000200 0
076 000200 0.00
SIGNATURE JACK M. HOUSTON
TITLE ASST-TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000733257
<NAME> VALUE LINE TAX EXEMPT FUND, INC.
<SERIES>
<NUMBER> 1
<NAME> NATIONAL BOND PORTFOLIO
<MULTIPLIER> 1000
<CURRENCY> US
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> FEB-28-2000
<PERIOD-START> MAR-01-1999
<PERIOD-END> AUG-31-1999
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 170545
<INVESTMENTS-AT-VALUE> 168136
<RECEIVABLES> 5927
<ASSETS-OTHER> 1675
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 175738
<PAYABLE-FOR-SECURITIES> 8111
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 464
<TOTAL-LIABILITIES> 8575
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 171257
<SHARES-COMMON-STOCK> 16354
<SHARES-COMMON-PRIOR> 16851
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1685)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (2409)
<NET-ASSETS> 167163
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 4494
<OTHER-INCOME> 0
<EXPENSES-NET> 550
<NET-INVESTMENT-INCOME> 3944
<REALIZED-GAINS-CURRENT> (2609)
<APPREC-INCREASE-CURRENT> (6874)
<NET-CHANGE-FROM-OPS> (5539)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 3992
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 621
<NUMBER-OF-SHARES-REDEEMED> 1365
<SHARES-REINVESTED> 246
<NET-CHANGE-IN-ASSETS> (14854)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 918
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 440
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 550
<AVERAGE-NET-ASSETS> 174921
<PER-SHARE-NAV-BEGIN> 10.80
<PER-SHARE-NII> .24
<PER-SHARE-GAIN-APPREC> (.58)
<PER-SHARE-DIVIDEND> .24
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.22
<EXPENSE-RATIO> .64
</TABLE>
