<PAGE> PAGE 1
000 B000000 11/30/95
000 C000000 771648
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 U
001 A000000 KEYSTONE TAX EXEMPT TRUST
001 B000000 811-4334
001 C000000 6173383200
002 A000000 200 BERKELEY STREET
002 B000000 BOSTON
002 C000000 MA
002 D010000 02116
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
020 A000001 ALPHA RESEARCH, CORP
020 C000001 20
020 A000002 LEHMAN BROS. INC.
020 B000002 13-2663822
020 C000002 8
020 A000003 REGINAL OPERATIONS GROUP
020 C000003 7
020 A000004 DILLION, DEAD & CO
020 B000004 13-1939216
020 C000004 6
020 A000005 MERRILL, LYNCH, PEIRCE, FENNER & SMITH
020 B000005 13-5674085
020 C000005 4
020 A000006 PAINE WEBBER, INC.
020 B000006 13-2638166
020 C000006 3
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 48
022 A000001 PAINE WEBBER, INC.
022 B000001 13-2638166
022 C000001 98355
022 D000001 101967
022 A000002 WILLIAM SIMON MUNICIPAL SECURITIES
022 C000002 70323
022 D000002 111212
022 A000003 SMITH BARNEY
<PAGE> PAGE 2
022 B000003 13-1912900
022 C000003 88740
022 D000003 67584
022 A000004 LEHMAN BROS. INC.
022 B000004 13-2663822
022 C000004 48247
022 D000004 63686
022 A000005 MERRILL, LYNCH, P,F,&S
022 B000005 13-5674085
022 C000005 31865
022 D000005 0
022 A000006 MORGAN STANLEY
022 B000006 13-2655998
022 C000006 26054
022 D000006 33059
022 A000007 EVEREN CLEARING CORP
022 C000007 27806
022 D000007 23831
022 A000008 DILLON, READ & CO.
022 B000008 13-1939216
022 C000008 24563
022 D000008 20175
022 A000009 GOLDMAN SACHS
022 B000009 13-5108880
022 C000009 20782
022 D000009 14406
022 A000010 DONALDSON, LUFKIN, & JENRETTE
022 B000010 13-2741729
022 C000010 17546
022 D000010 13866
023 C000000 673019
023 D000000 741085
028 A010000 4014
028 A020000 1736
028 A030000 0
028 A040000 18060
028 B010000 3307
028 B020000 1793
028 B030000 0
028 B040000 11603
028 C010000 1995
028 C020000 1560
028 C030000 0
028 C040000 10022
028 D010000 1160
028 D020000 1638
028 D030000 0
028 D040000 10164
028 E010000 3722
028 E020000 1723
028 E030000 0
<PAGE> PAGE 3
028 E040000 10240
028 F010000 5608
028 F020000 1577
028 F030000 0
028 F040000 8342
028 G010000 19806
028 G020000 10027
028 G030000 0
028 G040000 68431
028 H000000 0
034 000000 Y
035 000000 486
036 A000000 N
036 B000000 317
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 3434
044 000000 0
062 A000000 Y
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 3.1
062 F000000 0.0
062 G000000 0.0
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 96.8
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.1
063 A000000 0
063 B000000 18.9
064 A000000 Y
064 B000000 N
066 A000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
<PAGE> PAGE 4
070 A010000 Y
070 A020000 N
070 B010000 N
070 B020000 N
070 C010000 Y
070 C020000 N
070 D010000 N
070 D020000 N
070 E010000 Y
070 E020000 Y
070 F010000 N
070 F020000 N
070 G010000 Y
070 G020000 N
070 H010000 N
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 Y
070 J020000 N
070 K010000 Y
070 K020000 N
070 L010000 N
070 L020000 N
070 M010000 Y
070 M020000 N
070 N010000 Y
070 N020000 N
070 O010000 Y
070 O020000 N
070 P010000 Y
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 Y
070 R020000 N
071 A000000 359381
071 B000000 412530
071 C000000 668834
071 D000000 54
072 A000000 12
072 B000000 44217
072 C000000 0
072 D000000 0
072 E000000 0
072 F000000 3371
072 G000000 0
072 H000000 0
072 I000000 756
072 J000000 245
072 K000000 0
<PAGE> PAGE 5
072 L000000 35
072 M000000 34
072 N000000 41
072 O000000 0
072 P000000 0
072 Q000000 22
072 R000000 33
072 S000000 20
072 T000000 3434
072 U000000 0
072 V000000 0
072 W000000 73
072 X000000 8064
072 Y000000 0
072 Z000000 36153
072AA000000 3458
072BB000000 0
072CC010000 73588
072CC020000 0
072DD010000 36761
072DD020000 0
072EE000000 0
073 A010000 0.5500
073 A020000 0.0000
073 B000000 0.0000
073 C000000 0.0000
074 A000000 92
074 B000000 0
074 C000000 21600
074 D000000 665563
074 E000000 0
074 F000000 0
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 0
074 K000000 0
074 L000000 13525
074 M000000 67
074 N000000 700847
074 O000000 9807
074 P000000 0
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 3293
074 S000000 0
074 T000000 687747
074 U010000 63262
074 U020000 0
<PAGE> PAGE 6
074 V010000 10.87
074 V020000 0.00
074 W000000 0.0000
074 X000000 16474
074 Y000000 0
075 A000000 0
075 B000000 692598
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 N
077 Q010000 Y
077 Q020000 N
077 Q030000 N
078 000000 N
080 A000000 ICI MUTUAL INSURANCE COMPANY
080 B000000 FREDERICK JAMES
080 C000000 35000
081 A000000 Y
081 B000000 35
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 N
SIGNATURE KEVIN J. MORRISSEY
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<SERIES>
<NUMBER> 101
<NAME> KEYSTONE TAX EXEMPT TRUST CLASS A
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> NOV-30-1995
<PERIOD-START> DEC-01-1994
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 637,280,068
<INVESTMENTS-AT-VALUE> 687,162,631
<RECEIVABLES> 13,525,141
<ASSETS-OTHER> 159,025
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 700,846,797
<PAYABLE-FOR-SECURITIES> 9,806,940
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,293,282
<TOTAL-LIABILITIES> 13,100,222
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 652,754,825
<SHARES-COMMON-STOCK> 63,262,100
<SHARES-COMMON-PRIOR> 69,520,715
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (829,819)
<ACCUMULATED-NET-GAINS> (14,060,994)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 49,882,563
<NET-ASSETS> 687,746,575
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 44,217,059
<OTHER-INCOME> 0
<EXPENSES-NET> (8,064,453)
<NET-INVESTMENT-INCOME> 36,152,606
<REALIZED-GAINS-CURRENT> 3,458,445
<APPREC-INCREASE-CURRENT> 73,587,540
<NET-CHANGE-FROM-OPS> 113,198,591
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (36,761,349)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 5,504,163
<NUMBER-OF-SHARES-REDEEMED> (13,769,584)
<SHARES-REINVESTED> 2,006,806
<NET-CHANGE-IN-ASSETS> 11,055,527
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (2,350,752)
<OVERDIST-NET-GAINS-PRIOR> (17,280,803)
<GROSS-ADVISORY-FEES> (3,370,748)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (8,157,064)
<AVERAGE-NET-ASSETS> 692,598,027
<PER-SHARE-NAV-BEGIN> 9.73
<PER-SHARE-NII> 0.54
<PER-SHARE-GAIN-APPREC> 1.15
<PER-SHARE-DIVIDEND> (0.55)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 10.87
<EXPENSE-RATIO> 1.18
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
The Trustees and Shareholders
Keystone Tax Exempt Trust
In planning and performing our audit of the financial statements of Keystone
Tax Exempt Trust for the year ended November 30, 1995 we considered
its internal control structure, including procedures 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 the internal control
structure.
The management of Keystone Tax Exempt Trust is responsible for establishing and
maintaining an internal control structure. In fulfilling this responsibility,
estimates and judgments by management are required to assess the expected
benefits and related costs of internal control structure policies and
procedures. Two of the objectives of an internal control structure are to
provide management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition and that
transactions are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may occur and not be detected. Also, projection of any evaluation
of the structure 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 the internal control structure would not necessarily
disclose all matters in the internal control structure 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 the specific internal control structure elements does not reduce to
a relatively low level the risk that errors or irregularities 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 the internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined above as of
November 30, 1995.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
KPMG Peat Marwick LLP
January 5, 1996