FLAGSHIP TAX EXEMPT FUNDS TRUST
Supplement Dated January 2, 1996 to Prospectus Dated September 14, 1995
THE SECTION "HOW TO BUY SHARES CLASS A
SHARES OFFERED BY ALL FUNDS" ON PAGE 17 IS REVISED AS FOLLOWS:
CLASS A SHARES -- OFFERED BY ALL FUNDS
Total Sales Charge
____________________
Dealer
Concession
or Agency
Commission
Size of Percentage Percentage as
Transaction At of of Net Percentage
Public Offering Asset of Offering
Offering Price Price Value Price
_______________ __________ _________ ____________
All Series Except
those Listed
Below
Less than $50,000 4.20% 4.38% 3.70%
$50,000 to 4.00 4.18 3.50
$100,000
$100,000 to 3.50 3.65 3.00
$250,000
$250,000 to 2.50 2.61 2.00
$500,000
$500,000 to 2.00 2.09 1.50
$1,000,000
$1,000,000 and over -- -- --*
Intermediate Series
Less than $50,000 3.00% 3.09% 2.50%
$50,000 to 2.50 2.58 2.00
$100,000
$100,000 to 2.00 2.06 1.50
$250,000
$250,000 to 1.50 1.55 1.25
$500,000
$500,000 to 1.25 1.29 1.00
$1,000,000
$1,000,000 and over -- -- --*
Limited and Short
Term Series
Less than $50,000 2.50% 2.56% 2.00%
$50,000 to 2.00 2.05 1.60
$100,000
$100,000 to 1.50 1.54 1.20
$250,000
$250,000 to 1.25 1.28 1.00
$500,000
$500,000 to .75 .77 .60
$1,000,000
$1,000,000 and over -- -- --*
* A CDSC may be imposed as described below.
Class A Contingent Deferred Sales Charge. There is
no initial sales charge on purchases of Class A shares of
any one or more of the Tax Exempt Funds for purchases
aggregating $1 million or more. Shares of any of the
Funds that offer only one class of shares that have no
designation are considered "Class A" shares for this
purpose. The Distributor pays dealers of record
commissions on those purchases in an amount equal to the
sum of 1.0% of the first $2.5 million, plus 0.50% of the
next $2.5 million, plus 0.25% of purchases over $5
million. If you redeem any of those shares within 18
months of the end of the calendar month of their
purchase, a Class A contingent deferred sales charge
("CDSC") may be deducted from the redemption proceeds.
That sales charge will be equal to 1.0% of either (1) the
aggregate net asset value of the redeemed shares (not including
shares purchased by reinvestment of dividends or capital
gain distributions) or (2) the original cost of the
shares, whichever is less.
IN THE SECTION "SHAREHOLDER SERVICES FREE RE-ENTRY"
ON PAGE 19, the second sentence is deleted.
IN THE SECTION "LOUISIANA" ON PAGE 13, the paragraph
titled "Tax Considerations" is hereby deleted.
FLAGSHIP TAX EXEMPT FUNDS TRUST
Supplement dated January 2, 1996
to the Statement of Additional Information dated September 14, 1995
as supplemented October 26, 1995
On page 8, the listing of trustees and officers is
amended by adding "LeeAnne G. Sparling; Controller;
Portfolio Operations Manager of the Manager."
On page 14, in the first partial paragraph, the last
line is deleted.
On page 20, in the section titled "Purchase,
Redemption and Pricing of Shares Purchase," the first
paragraph is deleted (please refer to the Supplement
dated January 2, 1996 to the Prospectus for current
information). In the same section, the following
paragraph is added after the section titled "6. Wrap Fee
Accounts": " 7. Waiver of CDSC. For purchases of Class
A Shares in amounts over $1,000,000, the contingent
deferred sales charge may be waived for purchases through
a broker-dealer that waives its commission."
On page 6, in the section titled "Shares of the
Fund Class A Shares", the following sentence is added at
the end of the paragraph: "Class A Shares may be subject
to a CDSC as explained in the Supplement dated January 2,
1996 to the Prospectus".
