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PAGE 1
FINANCIAL PLANNING
IDS State Tax-Exempt Funds
1994 annual report
(prospectus enclosed)
(Icon of) The U.S. enclosed in a shield
Tax-exempt funds from the following states: California,
Massachusetts, Michigan, Minnesota, New York and Ohio.
IDS
An American Express company
AMERICAN
EXPRESS
Distributed by IDS Financial Services Inc.
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PAGE 2
(Icon of) The U.S. enclosed in a shield
Twice the tax relief
Many people who want to reduce their tax burden favor municipal
bonds because the interest they pay is generally free from federal
tax. If you want to eliminate state tax, too, you can invest in
municipal bonds in the state you reside. This double tax-exemption
makes this one of the best tax-advantaged investments still
available to individuals. What's more, the money you invest is
typically used by municipalities to fund projects such as schools
and highways. So, with this investment, the benefits reach well
beyond your pocketbook.
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PAGE 3
Contents
(Icon of) One open book inside of another.
The purpose of this annual report is to tell investors how the fund
performed.
The prospectus, which is bound into the middle of this annual
report, describes the funds in detail.
See page 2 of the prospectus for a detailed prospectus contents.
1994 annual report
From the president
From the portfolio manager 4
12-month performance 5
California Tax-Exempt Fund
Ten largest holdings 6
Long-term performance 7
Massachusetts Tax-Exempt Fund
Ten largest holdings 8
Long-term performance 9
Michigan Tax-Exempt Fund
Ten largest holdings 10
Long-term performance 11
Minnesota Tax-Exempt Fund
Ten largest holdings 12
Long-term performance 13
New York Tax-Exempt Fund
Ten largest holdings 14
Long-term performance 15
Ohio Tax-Exempt Fund
Ten largest holdings 16
Long-term performance 17
All Funds
Making the most of your fund 18
Independent auditors' report 21
Financial statements 22
Notes to financial statements 29
Investments in securities 33
IDS mutual funds 61
Federal income tax information 64
1994 prospectus
The funds in brief 3p
Sales charge and fund expenses 4p
Performance 5p
Investment policies and risks 14p
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PAGE 4
How to buy, exchange or sell shares 19p
Special shareholder services 27p
Distributions and taxes 28p
How the funds are organized 32p
About IDS 37p
Appendix 38p
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PAGE 5
To our shareholders
(Photo of) William R. Pearce, President of the fund
(Photo of) Paul Hylle, Portfolio manager
From the president
As you read this report, you'll find it very different from those
you've received from us in the past. We've made substantial
changes in the design and organization to make the information
easier to find and understand.
The annual report and prospectus are combined into a single
document, and each provides information important to you. The
annual report gives you the fund's performance information and a
snapshot of its investments. A good place to begin is with the
portfolio manager's letter, which describes the events and
investment strategies that most influenced the fund's performance
during the year. The prospectus includes essential data such as
the fund's investment policies and service information.
In redesigning our reports, we asked IDS financial planners and
some of you for suggestions and recommendations. We believe that
you'll find the results of our work worthwhile.
William R. Pearce
From the portfolio manager
A rapid rise in interest rates during the second half of the fiscal
year resulted in a steep decline in the bond market that ultimately
dragged down fund net asset values during the past 12 months.
Nevertheless, the funds provided shareholders with healthy
dividends free from both state and federal taxes.
The period certainly began well enough. As we expected, interest
rates continued to ease downward during July, August and September
of 1993, adding further fuel to a lengthy bond market rally.
(Falling rates generally improve bonds' market values, while rising
rates have the opposite effect.) In addition, we held bonds with
long maturities -- another plus for the funds because the longer
the maturity, the more the funds benefit from an interest rate
drop. We also kept the fund almost fully invested, meaning we kept
our cash reserves low.
Rising rates shake up market
The environment changed dramatically in early February, however,
when the Federal Reserve began raising short-term interest rates to
head off a potential rise in inflation. The market's negative
reaction was not surprising, but the degree and speed of the
reaction was much more severe than expected. The interest-rate
rise, which continued through April and proved to be the most
dramatic rate surge in recent history, was accompanied by severe
selling pressure on bonds. By the time the market settled down
somewhat, bonds, as well as the funds, had been forced to give back
much of the gains earned since the summer of 1993.
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PAGE 6
Helping temper the decline, however, was our emphasis on higher-
yielding bonds, whose prices tend to hold up better when interest
rates rise. Importantly, we employed this strategy without
sacrificing the overall high quality of the securities held in the
funds.
The period concluded on a calmer note, as interest rates fluctuated
less during May and June, allowing the fund to even gain back a bit
of ground. while we expect some ongoing market volatility in the
months ahead, we do think the worst of the storm has passed.
Most of damage behind us
Our reasoning is based on a fundamental factor: The economy is
continuing to grow but not at a rapid rate. In fact, the interest
rate increases initiated by the Federal Reserve earlier this year
should eventually result in a tempering of economic growth.
That's important to fixed-income investors because, in such an
economic environment, inflation is unlikely to increase
significantly. And well-behaved inflation usually means that long-
term interest rates, which have the greatest effect on the funds'
values, should eventually reach a relatively stable point. Adding
to our longer-term optimism is the ongoing decline in the new
issuance of municipal bonds coupled with good demand -- a positive
prescription for any security.
If that outlook proves to be essentially accurate, then the
remaining months of 1994 may well represent a good time to initiate
or add to an investment in municipal bonds.
Paul Hylle
12-month performance
<TABLE>
<CAPTION>
California Massachusetts Michigan
12-month performance 12-month performance 12-month performance
(All figures per share) (All figures per share) (All figures per share)
Net asset value (NAV) Net asset value (NAV) Net asset value (NAV)
<S> <C> <C> <C> <C> <C>
June 30, 1994 $5.13 June 30, 1994 $5.24 June 30, 1994 $5.35
June 30, 1993 $5.41 June 30, 1993 $5.49 June 30, 1993 $5.60
Decrease $0.28 Decrease $0.25 Decrease $0.25
Distributions Distributions Distributions
July 1, 1993-June 30, 1994 July 1, 1993-June 30, 1994 July 1, 1993-June 30, 1994
From income $0.31 From income $0.30 From income $0.31
From capital gains $ -- From capital gains $ -- From capital gains $ --
Total distributions $0.31 Total distributions $0.30 Total distributions $0.31
Total return* +0.41% Total return* +0.85% Total return* +1.02%
Minnesota New York Ohio
12-month performance 12-month performance 12-month performance
(All figures per share) (All figures per share) (All figures per share)
Net asset value (NAV) Net asset value (NAV) Net asset value (NAV)
June 30, 1994 $5.16 June 30, 1994 $5.12 June 30, 1994 $5.26
June 30, 1993 $5.44 June 30, 1993 $5.41 June 30, 1993 $5.58
Decrease $0.28 Decrease $0.29 Decrease $0.32
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PAGE 7
Distributions Distributions Distributions
July 1, 1993-June 30, 1994 July 1, 1993-June 30, 1994 July 1, 1993-June 30, 1994
From income $0.31 From income $0.30 From income $0.30
From capital gains $ -- From capital gains $ -- From capital gains $ --
Total distributions $0.31 Total distributions $0.30 Total distributions $0.30
Total return* +0.44% Total return* +0.08% Total return* (0.48%)
*The prospectus discusses the effect of the sales charge on the fund's performance.
</TABLE>
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PAGE 8
<TABLE>
<CAPTION>
IDS California Tax-Exempt Fund
Your fund's ten largest holdings
(Pie chart) The ten largest holdings listed here make up 26.74% of the fund's net assets
_____________________________________________________________________________________
Percent Value
(of fund's net assets)(as of June 30, 1994)
_____________________________________________________________________________________
<S> <C> <C>
Santa Clara County Transit District Sales Tax
Revenue Bonds Series 1991A
6.25% 2021 3.73% $9,512,038
Long Beach Harbor Revenue Bonds AMT Series 1989A
7.25% 2019 2.93 7,471,800
Los Angeles Department of Water & Power Electric Plant
Revenue Bonds Series 1990
7.125% 2030 2.81 7,173,270
Northern California Public Power Authority
Refunding Revenue Bonds Geothermal #3 Series 1987A
7.00% 2007 2.78 7,099,229
State Educational Facilities Authority Revenue Bonds
Stanford University Series J
6.00% 2016 2.77 7,082,359
Sacramento Municipal Utility District Series R
6.00% 2015-2017 2.77 7,057,700
Riverside Electric Revenue Bonds Series 1991
6.00% 2015 2.45 6,246,206
Los Angeles Single Family Home Mortgage
Revenue Bonds AMT Series 1991A
6.875% 2025 2.24 5,721,033
Los Angeles Convention & Exhibition Center Pre-Refunded
Certificate of Participation Series 1989A
7.00% 2020 2.16 5,517,150
Southern California Public Power Authority Transmission
Pre-Refunded Revenue Bonds Series 1986B
7.00% 2022 2.10 5,363,600
</TABLE>
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PAGE 9
Your fund's long-term performance
IDS California Tax-Exempt Fund
Three ways to benefit from a mutual fund:
o your shares increase in value when the fund's investments do
well
o you receive capital gains when the gains on investments sold by
the fund exceed losses
o you receive income when the fund's interest dividends and short-
term gains exceed its expenses.
All three make up your total return. And you potentially can
increase your investment if, like most investors, you reinvest your
dividends and capital gain distributions to buy additional shares
of the fund or another fund.
How your $10,000 has grown in IDS California Tax-Exempt Fund
Average annual total return
(as of June 30, 1994)
Since
1 year 5 years 8/18/86 $15,916
- -4.60% +5.90% +6.13% California
Tax-Exempt Fund
Lehman Total Return
Muni Index
$10,000
$9,500
9/1/86 '87 '88 '89 '90 '91 '92 '93 '94
Assumes: Holding period from 9/1/86 to 6/30/94. Returns do not
reflect taxes payable on distributions. Also see "Performance" in
the fund's current prospectus. Reinvestment of all income and
capital gain distributions for the fund, with a value of $6,192.
The Lehman Total Return Muni Index is an unmanaged list of
municipal bonds used as a general measure of market performance.
On the chart above you can see how the fund's total return compared
to a widely cited performance index, the Lehman Total Return Muni
Index. In comparing California Tax-Exempt Fund to this index, you
should take into account the fact that the fund's performance
reflects the maximum sales charge of 5%, while such charges are not
reflected in the performance of the indexe. If you were actually
to buy either individual bonds or bond mutual funds, any sales
charge that you pay would reduce your total return as well.
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
This was a period of widely fluctuating security prices. Past
performance is no guarantee of future results.<PAGE>
PAGE 10
<TABLE>
<CAPTION>
IDS Massachusetts Tax-Exempt Fund
Your fund's ten largest holdings
(Pie chart: The ten holdings listed here make up 24.87% of the fund's net assets
____________________________________________________________________________________
Percent Value
(of fund's net assets)(as of June 30, 1994)
____________________________________________________________________________________
<S> <C> <C>
Boston City Hospital Refunding Revenue Bonds
Series B
5.75% 2023 3.75% $2,701,890
Health & Educational Facilities Authority
Revenue Bonds Suffolk University Series B
6.35% 2022 3.41 2,459,621
Health & Educational Facilities Authority Revenue Bonds
Boston College Series J
6.625% 2021 2.83 2,037,260
Health & Educational Facilities Authority Revenue Bonds
Charlton Memorial Hospital Series 1991B
7.25% 2013 2.52 1,819,037
Industrial Finance Agency Resource Recovery Revenue Bonds
SEMASS Series 1991A
9.00% 2015 2.27 1,635,660
Municipal Wholesale Electric Power Supply System
Pre-Refunded Revenue Bonds Series 1992B
6.75% 2017 2.14 1,540,038
Bay Transportation Authority General Transportation System
Refunding Bonds Series 1992B
6.20% 2016 2.05 1,478,730
Boston General Obligation Refunding Bonds Series 1993A
5.65% 2009 2.00 1,445,115
Municipal Wholesale Electric Power Supply System
Revenue Bonds Series A
6.00% 2018 1.95 1,402,545
Industrial Finance Agency Pollution Control Refunding
Revenue Bonds Eastern Edison Series 1993
5.875% 2008 1.95 1,402,440
</TABLE>
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PAGE 11
Your fund's long-term performance
IDS Massachusetts Tax-Exempt Fund
Three ways to benefit from a mutual fund:
o your shares increase in value when the fund's investments do
well
o you receive capital gains when the gains on investments sold by
the fund exceed losses
o you receive income when the fund's interest dividends and short-
term gains exceed its expenses.
All three make up your total return. And you potentially can
increase your investment if, like most investors, you reinvest your
dividends and capital gain distributions to buy additional shares
of the fund or another fund.
How your $10,000 has grown in IDS Massachusetts Tax-Exempt Fund
Average annual total return
(as of June 30, 1994)
Since
1 year 5 years 7/02/87 $15,521
- -4.19% +6.09% +6.42% Massachusetts
Tax-Exempt Fund
Lehman Total Return
Muni Index
$10,000
$9,500
8/1/87 '88 '89 '90 '91 '92 '93 '94
Assumes: Holding period from 8/1/87 to 6/30/94. Returns do not
reflect taxes payable on distributions. Also see "Performance" in
the fund's current prospectus. Reinvestment of all income and
capital gain distributions for the fund, with a value of $5,474.
The Lehman Total Return Muni Index is an unmanaged list of
municipal bonds used as a general measure of market performance.
On the chart above you can see how the fund's total return compared
to a widely cited performance index, the Lehman Total Return Muni
Index. In comparing Massachusetts Tax-Exempt Fund to this index,
you should take into account the fact that the fund's performance
reflects the maximum sales charge of 5%, while such charges are not
reflected in the performance of the indexe. If you were actually
to buy either individual bonds or bond mutual funds, any sales
charge that you pay would reduce your total return as well.
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
This was a period of widely fluctuating security prices. Past
performance is no guarantee of future results.<PAGE>
PAGE 12
<TABLE>
<CAPTION>
IDS Michigan Tax-Exempt Fund
(Pie chart) The ten holdings listed here make up 27.75% of the funds net assets
Your fund's ten largest holdings
____________________________________________________________________________________
Percent Value
(of fund's net assets)(as of June 30, 1994)
____________________________________________________________________________________
<S> <C> <C>
State University Board of Trustees
General Revenue Bonds Series 1992A
6.25% 2015 3.88% $2,975,370
State Strategic Fund Limited Tax Obligation
Refunding Revenue Bonds Detroit Edison
Series 1992BB
6.50% 2016 3.31 2,540,525
State Trunk Line Series A
5.75% 2020 3.28 2,518,097
State Building Authority Refunding Revenue Bonds
Series 1991I
6.25% 2020 2.79 2,138,950
State Hospital Finance Authority Hospital
Pre-Refunded Revenue Bonds McLaren Obligated Group
Series 1991A
7.50% 2021 2.61 2,002,053
Monroe County Pollution Control Revenue Bonds AMT
Detroit Edison Fermi 2 Plants Series CC
7.50% 2019 2.53 1,940,207
Southfield Public Schools Building & Site
Unlimited Tax General Obligation Bonds
5.875% 2022 2.39 1,836,000
Caledonia Community School Unlimited Tax
General Obligation Refunding Revenue Bonds
5.50% 2022 2.34 1,793,420
State Strategic Fund Limited Tax Obligation
Refunding Revenue Bonds Ford Motor Series 1991A
7.10% 2006 2.33 1,786,950
Battle Creek Water Supply System
Pre-Refunded Revenue Bonds Series 1990B
6.375% 2008-2010 2.29 1,752,373
</TABLE>
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PAGE 13
Your fund's long-term performance
IDS Michigan Tax-Exempt Fund
Three ways to benefit from a mutual fund:
o your shares increase in value when the fund's investments do
well
o you receive capital gains when the gains on investments sold by
the fund exceed losses
o you receive income when the fund's interest dividends and short-
term gains exceed its expenses.
All three make up your total return. And you potentially can
increase your investment if, like most investors, you reinvest your
dividends and capital gain distributions to buy additional shares
of the fund or another fund.
How your $10,000 has grown in IDS Michigan Tax-Exempt Fund
Average annual total return
(as of June 30, 1994)
Since
1 year 5 years 7/02/87 $15,918
- -4.02% +6.22% +6.72% Michigan
Tax-Exempt Fund
Lehman Total Return
Muni Index
$10,000
$9,500
8/1/87 '88 '89 '90 '91 '92 '93 '94
Assumes: Holding period from 8/1/87 to 6/30/94. Returns do not
reflect taxes payable on distributions. Also see "Performance" in
the fund's current prospectus. Reinvestment of all income and
capital gain distributions for the fund, with a value of $5,595.
The Lehman Total Return Muni Index is an unmanaged list of
municipal bonds used as a general measure of market performance.
On the chart above you can see how the fund's total return compared
to a widely cited performance index, the Lehman Total Return Muni
Index. In comparing Michigan Tax-Exempt Fund to this index, you
should take into account the fact that the fund's performance
reflects the maximum sales charge of 5%, while such charges are not
reflected in the performance of the indexe. If you were actually
to buy either individual bonds or bond mutual funds, any sales
charge that you pay would reduce your total return as well.
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
This was a period of widely fluctuating security prices. Past
performance is no guarantee of future results.<PAGE>
PAGE 14
<TABLE>
<CAPTION>
IDS Minnesota Tax-Exempt Fund
Your fund's ten largest holdings
(Pie chart: The ten holdings listed here make up 22.54% of the fund's net assets
_________________________________________________________________________________________
Percent Value
(of fund's net assets)(as of June 30, 1994)
_________________________________________________________________________________________
<S> <C> <C>
Minneapolis General Obligation Sales Tax
Refunding Bonds Series 1992
6.25% 2012 3.32% $13,567,190
St. Paul & Minneapolis Housing & Redevelopment
Authority Health Care Facility Revenue Bonds
Group Health Plan Series 1992
6.75% 2013 2.60 10,624,320
State General Obligation Various Purpose Pre-Refunded Bonds
Series 1991
6.70% 2011 2.41 9,828,273
State Public Facilities Authority Water Pollution
Control Revenue Bonds Series 1992A
6.50% 2014 2.34 9,574,538
State General Obligation Various Purpose Pre-Refunded Bonds
Series 1990
7.00% 2009 2.11 8,604,306
Anoka County General Obligation Capital Improvement
Revenue Bonds Series 1989B
7.00% 2007-2010 2.09 8,546,807
Southern Minnesota Municipal Power Agency
Power Supply System Pre-Refunded Revenue Bonds Series 1986C
7.125% 2015 2.08 8,484,000
Western Minnesota Municipal Power Agency Supply
Refunding Revenue Bonds Series 1987A
7.00% 2013 1.88 7,694,273
Hennepin County Lease Revenue Certificate
of Participation Series 1991
6.80% 2017 1.88 7,657,088
St. Paul Sewer Refunding Revenue Bonds Series 1993
5.60% 2008 1.83 7,484,477
</TABLE>
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PAGE 15
Your fund's long-term performance
IDS Minnesota Tax-Exempt Fund
Three ways to benefit from a mutual fund:
o your shares increase in value when the fund's investments do
well
o you receive capital gains when the gains on investments sold by
the fund exceed losses
o you receive income when the fund's interest dividends and short-
term gains exceed its expenses.
All three make up your total return. And you potentially can
increase your investment if, like most investors, you reinvest your
dividends and capital gain distributions to buy additional shares
of the fund or another fund.
How your $10,000 has grown in IDS Minnesota Tax-Exempt Fund
Average annual total return
(as of June 30, 1994)
Since
1 year 5 years 8/18/86 $15,922
- -4.57% +5.82% +6.37% Minnesota
Tax-Exempt Fund
Lehman Total Return
Muni Index
$10,000
$9,500
9/1/86 '87 '88 '89 '90 '91 '92 '93 '94
Assumes: Holding period from 9/1/86 to 6/30/94. Returns do not
reflect taxes payable on distributions. Also see "Performance" in
the fund's current prospectus. Reinvestment of all income and
capital gain distributions for the fund, with a value of $6,316.
The Lehman Total Return Muni Index is an unmanaged list of
municipal bonds used as a general measure of market performance.
On the chart above you can see how the fund's total return compared
to a widely cited performance index, the Lehman Total Return Muni
Index. In comparing Minnesota Tax-Exempt Fund to this index, you
should take into account the fact that the fund's performance
reflects the maximum sales charge of 5%, while such charges are not
reflected in the performance of the indexe. If you were actually
to buy either individual bonds or bond mutual funds, any sales
charge that you pay would reduce your total return as well.
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
This was a period of widely fluctuating security prices. Past
performance is no guarantee of future results.<PAGE>
PAGE 16
<TABLE>
<CAPTION>
IDS New York Tax-Exempt Bond Fund
Your fund's ten largest holdings
(Pie Chart) The ten holdings listed here make up 34.0% of the fund's net assets.
____________________________________________________________________________________________________
Percent Value
(of fund's net assets)(as of June 30, 1994)
____________________________________________________________________________________________________
<S> <C> <C>
State Energy Research & Development Authority
Electric Facility Revenue Bonds AMT Consolidated Edison
Series 1990A
7.50% 2025 4.42% $5,314,900
State Urban Development Correction Facility Pre-Refunded Revenue Bonds
Series 1
7.50% 2020 4.23 5,080,950
State Local Government Assistance Pre-Refunded Bonds Series 1991A
7.00% 2016 3.71 4,461,840
United Nations Development Senior Lien
Refunding Revenue Bonds Series 1992A
6.00% 2026 3.51 4,221,405
State Mortgage Agency Homeowner Mortgage Revenue Bonds
Series TT
7.50% 2015 3.50 4,205,960
State Dormitory Authority City University System
Pre-Refunded Revenue Bonds
8.125% 2017 3.15 3,781,990
New York City Water Finance Authority Water & Sewer System
Revenue Bonds Series 1993A
5.75% 2018 3.09 3,706,400
Battery Park City Authority Senior Refunding Revenue Bonds
Series 1993A
5.25% 2017 2.88 3,456,920
Triborough Bridge & Tunnel Authority General Purpose
Pre-Refunded Revenue Bonds Series S
7.00% 2021 2.77 3,327,030
State Environmental Facility State Water & Pollution Control
Revolving Fund Revenue Bonds New York City
Municipal Water Finance Authority Series 1990A
7.50% 2012 2.74 3,291,600
</TABLE>
<PAGE>
PAGE 17
Your fund's long-term performance
IDS New York Tax-Exempt Fund
Three ways to benefit from a mutual fund:
o your shares increase in value when the fund's investments do
well
o you receive capital gains when the gains on investments sold by
the fund exceed losses
o you receive income when the fund's interest dividends and short-
term gains exceed its expenses.
All three make up your total return. And you potentially can
increase your investment if, like most investors, you reinvest your
dividends and capital gain distributions to buy additional shares
of the fund or another fund.
How your $10,000 has grown in IDS New York Tax-Exempt Fund
Average annual total return
(as of June 30, 1994)
Since
1 year 5 years 8/18/86 $15,879
- -4.92% +6.26% +6.10% New York
Tax-Exempt Fund
Lehman Total Return
Muni Index
$10,000
$9,500
9/1/86 '87 '88 '89 '90 '91 '92 '93 '94
Assumes: Holding period from 9/1/86 to 6/30/94. Returns do not
reflect taxes payable on distributions. Also see "Performance" in
the fund's current prospectus. Reinvestment of all income and
capital gain distributions for the fund, with a value of $6,189.
The Lehman Total Return Muni Index is an unmanaged list of
municipal bonds used as a general measure of market performance.
On the chart above you can see how the fund's total return compared
to a widely cited performance index, the Lehman Total Return Muni
Index. In comparing New York Tax-Exempt Fund to this index, you
should take into account the fact that the fund's performance
reflects the maximum sales charge of 5%, while such charges are not
reflected in the performance of the indexe. If you were actually
to buy either individual bonds or bond mutual funds, any sales
charge that you pay would reduce your total return as well.
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
This was a period of widely fluctuating security prices. Past
performance is no guarantee of future results.<PAGE>
PAGE 18
<TABLE>
<CAPTION>
IDS Ohio Tax-Exempt Fund
Your fund's ten largest holdings
(Pie chart) The ten holdings listed here make up 23.60% of the fund's net assets
_______________________________________________________________________________________
Percent Value
(of fund's net assets)(as of June 30, 1994)
_______________________________________________________________________________________
<S> <C> <C>
Rocky River City School District Unlimited Tax
Improvement General Obligation Bonds
Series 1991A
6.90% 2011 3.26% $2,344,409
Erie County Hospital Improvement Refunding Revenue Bonds
Firelands Community Hospital Series 1992
6.75% 2015 2.83 2,030,780
Lucas County Hospital Refunding Revenue Bonds
St. Vincent's Medical Center Series B
5.25% 2020 2.41 1,734,700
Cleveland Waterworks Improvement 1st Mortgage
Pre-Refunded Revenue Bonds Series F 1992A
6.50% 2021 2.40 1,722,145
Butler County Hospital Facility Improvement
Refunding Revenue Bonds
7.50% 2010 2.38 1,709,347
Franklin County Convention Facilities Authority
Tax & Lease Revenue Anticipation Pre-Refunded Bonds
7.00% 2019 2.33 1,672,485
State Housing Finance Agency Mortgage Revenue Bonds
AMT Aristocrat South Board & Care Series 1991A
7.30% 2031 2.12 1,525,515
State Water Development Authority
Improvement Refunding Revenue Bonds Pure Water Series
6.00% 2008 2.11 1,517,265
Cuyahoga County Hospital Refunding Revenue Bond
Cleveland Clinic Foundation Series 1992
5.50% 2011 1.95 1,399,695
Akron Bath & Copley Joint Township Hospital
Refunding Revenue Bonds Childrens Hospital Medical Center
Series 1993
5.25% 2020 1.81 1,300,290
</TABLE>
<PAGE>
PAGE 19
Your fund's long-term performance
IDS Ohio Tax-Exempt Fund
Three ways to benefit from a mutual fund:
o your shares increase in value when the fund's investments do
well
o you receive capital gains when the gains on investments sold by
the fund exceed losses
o you receive income when the fund's interest dividends and short-
term gains exceed its expenses.
All three make up your total return. And you potentially can
increase your investment if, like most investors, you reinvest your
dividends and capital gain distributions to buy additional shares
of the fund or another fund.
How your $10,000 has grown in IDS Ohio Tax-Exempt Fund
Average annual total return
(as of June 30, 1994)
Since
1 year 5 years 7/02/87 $15,699
- -5.45% +6.04% +6.48% Ohio
Tax-Exempt Fund
Lehman Total Return
Muni Index
$10,000
$9,500
8/1/87 '88 '89 '90 '91 '92 '93 '94
Assumes: Holding period from 8/1/87 to 6/30/94. Returns do not
reflect taxes payable on distributions. Also see "Performance" in
the fund's current prospectus. Reinvestment of all income and
capital gain distributions for the fund, with a value of $5,542.
The Lehman Total Return Muni Index is an unmanaged list of
municipal bonds used as a general measure of market performance.
On the chart above you can see how the fund's total return compared
to a widely cited performance index, the Lehman Total Return Muni
Index. In comparing Ohio Tax-Exempt Fund to this index, you should
take into account the fact that the fund's performance reflects the
maximum sales charge of 5%, while such charges are not reflected in
the performance of the indexe. If you were actually to buy either
individual bonds or bond mutual funds, any sales charge that you
pay would reduce your total return as well.
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
This was a period of widely fluctuating security prices. Past
performance is no guarantee of future results.<PAGE>
PAGE 20
Making the most of your fund
California Tax-Exempt Fund - average annual total return
(June 30, 1994)
1 year 5 years Since inception*
- -4.60% +5.90% +6.13%
*Aug. 18, 1986
Massachusetts Tax-Exempt Fund - average annual total return
(June 30, 1994)
1 year 5 years Since inception*
- -4.19% +6.09% +6.42%
*July 2, 1987
Michigan Tax-Exempt Fund - average annual total return
(June 30, 1994)
1 year 5 years Since inception*
- -4.02% +6.22% +6.72%
*July 2, 1987
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
Figures include the effect of the maximum sales charge. This was a
period of widely fluctuating security prices. Past performance is
no guarantee of future results.
Minnesota Tax-Exempt Fund - average annual total return
(June 30, 1994)
1 year 5 years Since inception*
- -4.57% +5.82% +6.37%
*Aug. 18, 1986
New York Tax-Exempt Fund - average annual total return
(June 30, 1994)
1 year 5 years Since inception*
- -4.92% +6.26% +6.10%
*Aug. 18, 1986
<PAGE>
PAGE 21
Ohio Tax-Exempt Fund - average annual total return
(June 30, 1994)
1 year 5 years Since inception*
- -5.45% +6.04% +6.48%
*July 2, 1987
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
Figures include the effect of the maximum sales charge. This was a
period of widely fluctuating security prices. Past performance is
no guarantee of future results.
<PAGE>
PAGE 22
Making the most of your fund
Build your assets systematically
To keep your assets growing steadily, one of the best ways to
invest in the fund is by dollar-cost averaging -- a time-tested
strategy that can make market fluctuations work for you. To
dollar-cost average, simply invest a fixed amount of money
regularly. You'll automatically buy more shares when the fund's
share price is low, fewer shares when it is high.
This does not ensure a profit or avoid a loss if the market
declines. But, if you can continue to invest regularly through
changing market conditions, it can be an effective way to
accumulate shares to meet your long-term goals.
How dollar-cost averaging works
Month Amount Per-share Number of shares purchased
invested market price
Jan $100 $20 5.00
Feb 100 18 5.56
Mar 100 17 5.88
Apr 100 15 6.67
May 100 16 6.25
June 100 18 5.56
July 100 17 5.88
Aug 100 19 5.26
Sept 100 21 4.76
Oct 100 20 5.00
(footnotes to table) By investing an equal number of dollars each
month...
(arrow in table pointing to April) you automatically buy more
shares when the per share market price is low
(arrow in table pointing to September) and fewer shares when the
per share market price is high.
You have paid an average price of only $17.91 per share over the 10
months, while the average market price actually was $18.10.
<PAGE>
PAGE 23
___________________________________________________________________
Independent auditors' report
The board of trustees and shareholders
IDS California Tax-Exempt Trust
IDS Special Tax-Exempt Series Trust:
We have audited the accompanying statements of assets and
liabilities, including the schedules of investments in securities,
of IDS California Tax-Exempt Fund (a fund within IDS California
Tax-Exempt Trust), and IDS Massachusetts Tax-Exempt Fund, IDS
Michigan Tax-Exempt Fund, IDS Minnesota Tax-Exempt Fund, IDS New
York Tax-Exempt Fund and IDS Ohio Tax-Exempt Fund (funds within IDS
Special Tax-Exempt Series Trust) as of June 30, 1994, and the
related statements of operations for the year then ended, the
statements of changes in net assets for each of the years in the
two-year period ended June 30, 1994, the financial highlights for
each of the years in the five-year period ended June 30, 1994, the
six months ended June 30, 1989, each of the years in the two-year
period ended December 31, 1988, and the period from August 18, 1986
(commencement of operations), to December 31, 1986, of IDS
California Tax-Exempt Fund, IDS Minnesota Tax-Exempt Fund and IDS
New York Tax-Exempt Fund; and the financial highlights for each of
the years in the seven-year period ended June 30, 1994, of IDS
Massachusetts Tax-Exempt Fund, IDS Michigan Tax-Exempt Fund and IDS
Ohio Tax-Exempt Fund. These financial statements and the financial
highlights are the responsibility of fund management. Our
responsibility is to express an opinion on these financial
statements and the financial highlights based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements and the financial highlights are free of
material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements. Investment securities held in custody are
confirmed to us by the custodian. As to securities purchased and
sold but not received or delivered, we request confirmations from
brokers, and where replies are not received, we carry out other
appropriate auditing procedures. An audit also includes assessing
the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis
for our opinion.
<PAGE>
PAGE 24
In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of IDS
California Tax-Exempt Fund, IDS Massachusetts Tax-Exempt Fund, IDS
Michigan Tax-Exempt Fund, IDS Minnesota Tax-Exempt Fund, IDS New
York Tax-Exempt Fund and IDS Ohio Tax-Exempt Fund at June 30, 1994,
and the results of their operations for the year then ended, the
changes in their net assets for each of the years in the two-year
period ended June 30, 1994, and the financial highlights for the
periods stated in the first paragraph above, in conformity with
generally accepted accounting principles.
KPMG Peat Marwick
Minneapolis, Minnesota
August 5, 1994
<PAGE>
PAGE 25
<TABLE>
<CAPTION>
Financial statements
Statements of assets and liabilities
IDS California Tax-Exempt Trust
IDS Special Tax-Exempt Series Trust
June 30, 1994
_____________________________________________________________________________________________________________________________
Assets
_____________________________________________________________________________________________________________________________
California Massachusetts Michigan
Tax-Exempt Tax-Exempt Tax-Exempt
Fund Fund Fund
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
Investments in securities, at value (Note 1)
(identified cost $238,921,908, $68,569,018 and
$72,083,775) $250,756,406 $ 70,150,034 $75,396,329
Cash in bank on demand deposit 16,912 348,034 418,827
Accrued interest receivable 4,989,483 1,649,762 1,334,666
Receivable for investment securities sold -- -- 2,221,242
_____________________________________________________________________________________________________________________________
Total assets 255,762,801 72,147,830 79,371,064
_____________________________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________________________
Dividends payable to shareholders 129,639 35,115 36,782
Payable for investment securities purchased 262,500 -- 2,593,349
Accrued investment management and services fee 112,274 31,505 33,498
Accrued distribution fee 3,421 1,602 1,409
Accrued transfer agency fee 8,708 4,107 3,617
Other accrued expenses 49,503 26,919 19,595
_____________________________________________________________________________________________________________________________
Total liabilities 566,045 99,248 2,688,250
_____________________________________________________________________________________________________________________________
Net assets applicable to outstanding shares $255,196,756 $ 72,048,582 $76,682,814
_____________________________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________________________
Shares of beneficial interest - $.01 par value, unlimited
number of shares authorized; outstanding 49,714,953; 13,749,968
and 14,320,277 shares $ 497,150 $ 137,500 $ 143,203
Additional paid-in capital 246,797,727 70,634,128 73,515,716
Undistributed net investment income 35 -- --
Accumulated net realized loss (Notes 1 and 6) (3,252,279) (304,062) (288,659)
Unrealized appreciation (Note 5) 11,154,123 1,581,016 3,312,554
_____________________________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding shares $255,196,756 $ 72,048,582 $76,682,814
_____________________________________________________________________________________________________________________________
Net asset value per share $ 5.13 $ 5.24 $ 5.35
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
<PAGE>
PAGE 26
Financial statements
Statements of assets and liabilities
IDS California Tax-Exempt Trust
IDS Special Tax-Exempt Series Trust
June 30, 1994
_____________________________________________________________________________________________________________________________
Assets
_____________________________________________________________________________________________________________________________
Minnesota New York Ohio
Tax-Exempt Tax-Exempt Tax-Exempt
Fund Fund Fund
_____________________________________________________________________________________________________________________________
Investments in securities, at value (Note 1)
(identified cost $392,601,640, $112,351,032
and $68,841,082) $400,662,645 $117,798,265 $70,538,749
Cash in bank on demand deposit 4,885,147 77,025 346,514
Accrued interest receivable 9,254,717 2,549,320 1,044,978
Receivable for investment securities sold 345,000 -- --
_____________________________________________________________________________________________________________________________
Total assets 415,147,509 120,424,610 71,930,241
_____________________________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________________________
Dividends payable to shareholders 202,557 58,755 34,189
Payable for investment securities purchased 6,241,965 118,125 --
Accrued investment management and services fee 178,143 52,348 31,452
Accrued distribution fee 8,090 2,437 1,358
Accrued transfer agency fee 20,766 6,247 3,486
Other accrued expenses 105,357 28,066 24,821
_____________________________________________________________________________________________________________________________
Total liabilities 6,756,878 265,978 95,306
_____________________________________________________________________________________________________________________________
Net assets applicable to outstanding shares $408,390,631 $120,158,632 $71,834,935
_____________________________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________________________
Shares of beneficial interest - $.01 par value, unlimited
shares authorized; outstanding 79,123,225; 23,481,717
and 13,661,035 shares $ 791,232 $ 234,817 $ 136,610
Additional paid-in capital 402,653,683 115,982,775 70,304,997
Accumulated net realized loss (Notes 1 and 6) (2,179,071) (1,200,068) (304,339)
Unrealized appreciation (Note 5) 7,124,787 5,141,108 1,697,667
_____________________________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding shares $408,390,631 $120,158,632 $71,834,935
_____________________________________________________________________________________________________________________________
Net asset value per share $ 5.16 $ 5.12 $ 5.26
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
<PAGE>
PAGE 27
Financial statements
Statements of operations
IDS California Tax-Exempt Trust
IDS Special Tax-Exempt Series Trust
Year ended ended June 30, 1994
_____________________________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________________________
California Massachusetts Michigan
Tax-Exempt Tax-Exempt Tax-Exempt
Fund Fund Fund
_____________________________________________________________________________________________________________________________
Income:
Interest $16,884,415 $ 4,357,924 $ 4,674,907
_____________________________________________________________________________________________________________________________
Expenses (Note 2):
Investment management and services fee 1,418,804 377,077 405,578
Distribution fee 41,568 18,719 16,271
Transfer agency fee 104,864 47,474 41,235
Compensation of trustees 6,710 3,547 5,804
Compensation of officers 1,973 741 623
Custodian fees 2 9 386
Postage 20,647 8,610 4,518
Registration fees 11,274 9,517 6,879
Reports to shareholders 15,146 2,574 1,033
Audit fees 14,750 13,000 13,000
Administrative 4,697 3,239 2,958
Other 7,346 11,391 5,165
_____________________________________________________________________________________________________________________________
Total expenses 1,647,781 495,898 503,450
_____________________________________________________________________________________________________________________________
Investment income -- net 15,236,634 3,862,026 4,171,457
_____________________________________________________________________________________________________________________________
Realized and unrealized loss -- net
_____________________________________________________________________________________________________________________________
Net realized loss on security transactions (Note 3) (959,173) (29,934) (72,444)
Net realized loss on closed interest rate futures contracts (1,416,331) -- --
_____________________________________________________________________________________________________________________________
Net realized loss on investments (2,375,504) (29,934) (72,444)
Net change in unrealized appreciation or depreciation (11,906,345) (3,499,662) (3,496,616)
_____________________________________________________________________________________________________________________________
Net loss on investments (14,281,849) (3,529,596) (3,569,060)
_____________________________________________________________________________________________________________________________
Net increase in net assets resulting from operations $ 954,785 $ 332,430 $ 602,397
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
<PAGE>
PAGE 28
Financial statements
Statements of operations
IDS California Tax-Exempt Trust
IDS Special Tax-Exempt Series Trust
Year ended June 30, 1994
_____________________________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________________________
Minnesota New York Ohio
Tax-Exempt Tax-Exempt Tax-Exempt
Fund Fund Fund
_____________________________________________________________________________________________________________________________
Income:
Interest $ 27,008,972 $ 7,698,991 $ 4,405,508
_____________________________________________________________________________________________________________________________
Expenses (Note 2):
Investment management and services fee 2,227,969 648,514 381,106
Distribution fee 97,718 29,229 15,702
Transfer agency fee 248,181 74,277 40,107
Compensation of trustees 8,690 6,381 6,160
Compensation of officers 5,021 881 742
Custodian fees 50 -- --
Postage 45,706 11,886 6,640
Registration fees 108,888 8,623 8,797
Reports to shareholders 24,711 5,591 2,389
Audit fees 15,500 14,250 13,000
Administrative 5,280 2,454 1,406
Other 15,726 1,563 1,613
_____________________________________________________________________________________________________________________________
Total expenses 2,803,440 803,649 477,662
_____________________________________________________________________________________________________________________________
Investment income -- net 24,205,532 6,895,342 3,927,846
_____________________________________________________________________________________________________________________________
Realized and unrealized gain (loss) -- net
_____________________________________________________________________________________________________________________________
Net realized gain (loss) on security transactions (Note 3) 1,590,129 134,546 (177,991)
Net realized loss on closed interest rate futures contracts (1,941,413) (639,604) --
______________________________________________________________________________________________________________________________
Net realized loss on investments (351,284) (505,058) (177,991)
Net change in unrealized appreciation or depreciation (22,689,828) (6,437,361) (4,272,974)
_____________________________________________________________________________________________________________________________
Net loss on investments (23,041,112) (6,942,419) (4,450,965)
_____________________________________________________________________________________________________________________________
Net increase (decrease) in net assets resulting from operations $ 1,164,420 $ (47,077) $ (523,119)
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 29
<TABLE>
<CAPTION>
Financial statements
Statements of changes in net assets
IDS California Tax-Exempt Trust
IDS Special Tax-Exempt Series Trust
Year ended June 30,
_____________________________________________________________________________________________________________________________
Operations and distributions 1994 1993 1994 1993
_____________________________________________________________________________________________________________________________
California Tax-Exempt Fund Massachusetts Tax-Exempt Fund
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Investment income -- net $ 15,236,634 $ 13,860,607 $ 3,862,026 $ 2,982,897
Net realized gain (loss) on investments (2,375,504) 170,092 (29,934) (479)
Net change in unrealized appreciation or (11,906,345) 10,595,516 (3,499,662) 2,842,517
depreciation
_____________________________________________________________________________________________________________________________
Net increase in net assets resulting
from operations 954,785 24,626,215 332,430 5,824,935
_____________________________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income (15,235,348) (13,861,943) (3,862,035) (2,982,956)
_____________________________________________________________________________________________________________________________
Share transactions (Note 4)
_____________________________________________________________________________________________________________________________
Proceeds from sales (Note 2) 35,683,408 43,318,047 22,403,265 22,543,737
Reinvestment of distributions 10,573,864 9,387,295 3,055,527 2,340,831
Payments for redemptions (37,967,003) (24,496,269) (14,032,861) (7,383,168)
_____________________________________________________________________________________________________________________________
Increase in net assets from share transactions 8,290,269 28,209,073 11,425,931 17,501,400
_____________________________________________________________________________________________________________________________
Total increase (decrease) in net assets (5,990,294) 38,973,345 7,896,326 20,343,379
Net assets at beginning of year 261,187,050 222,213,705 64,152,256 43,808,877
_____________________________________________________________________________________________________________________________
Net assets at end of year
(including undistributed net investment income
for IDS California of $35 for 1994
and IDS Massachusetts of $9 for 1993) $255,196,756 $261,187,050 $ 72,048,582 $ 64,152,256
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
<PAGE>
PAGE 30
Financial statements
Statements of changes in net assets
IDS California Tax-Exempt Trust
IDS Special Tax-Exempt Series
Year ended June 30,
_____________________________________________________________________________________________________________________________
Operations and distributions 1994 1993 1994 1993
_____________________________________________________________________________________________________________________________
Michigan Tax-Exempt Fund Minnesota Tax-Exempt Fund
_____________________________________________________________________________________________________________________________
Investment income -- net $ 4,171,457 $ 3,490,946 $ 24,205,532 $ 20,972,865
Net realized gain (loss) on investments (72,444) 25,065 (351,284) 114,873
Net change in unrealized appreciation or (3,496,616) 3,377,911 (22,689,828) 14,751,768
depreciation
_____________________________________________________________________________________________________________________________
Net increase in net assets resulting from operations 602,397 6,893,922 1,164,420 35,839,506
_____________________________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income (4,171,489) (3,491,044) (24,204,281) (20,974,210)
Net realized gain on investments (68,841) -- -- --
_____________________________________________________________________________________________________________________________
Total distributions (4,240,330) (3,491,044) (24,204,281) (20,974,210)
_____________________________________________________________________________________________________________________________
Share transactions (Note 4)
_____________________________________________________________________________________________________________________________
Proceeds from sales (Note 2) 15,113,866 17,163,359 81,250,235 96,570,778
Reinvestment of distributions 3,148,115 2,459,045 19,448,232 16,613,955
Payments for redemptions (9,715,456) (5,905,586) (70,952,363) (39,837,405)
_____________________________________________________________________________________________________________________________
Increase in net assets from share transactions 8,546,525 13,716,818 29,746,104 73,347,328
______________________________________________________________________________________________________________________________
Total increase in net assets 4,908,592 17,119,696 6,706,243 88,212,624
Net assets at beginning of year 71,774,222 54,654,526 401,684,388 313,471,764
_____________________________________________________________________________________________________________________________
Net assets at end of year
(including undistributed net investment income
for IDS Michigan of $32 for 1993) $ 76,682,814 $ 71,774,222 $408,390,631 $401,684,388
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
<PAGE>
PAGE 31
Financial statements
Statements of changes in net assets
IDS California Tax-Exempt Trust
IDS Special Tax-Exempt Series Trust
Year ended June 30,
_____________________________________________________________________________________________________________________________
Operations and distributions 1994 1993 1994 1993
_____________________________________________________________________________________________________________________________
New York Tax-Exempt Fund Ohio Tax-Exempt Fund
_____________________________________________________________________________________________________________________________
Investment income -- net $ 6,895,342 $ 6,091,422 $ 3,927,846 $ 3,083,675
Net realized gain (loss) on investments (505,058) (4,095) (177,991) 38,778
Net change in unrealized appreciation or (6,437,361) 5,557,017 (4,272,974) 3,216,945
depreciation
_____________________________________________________________________________________________________________________________
Net increase (decrease) in net assets
resulting from operations (47,077) 11,644,344 (523,119) 6,339,398
_____________________________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income (6,894,339) (6,092,439) (3,927,883) (3,083,897)
Net realized gain on investments -- -- (786) (78,831)
_____________________________________________________________________________________________________________________________
Total distributions (6,894,339) (6,092,439) (3,928,669) (3,162,728)
_____________________________________________________________________________________________________________________________
Share transactions (Note 4)
_____________________________________________________________________________________________________________________________
Proceeds from sales (Note 2) 21,355,340 22,014,933 17,974,999 18,759,240
Reinvestment of distributions 5,365,427 4,602,258 3,100,875 2,456,447
Payments for redemptions (16,789,123) (10,260,106) (9,646,507) (6,171,189)
_____________________________________________________________________________________________________________________________
Increase in net assets from share transactions 9,931,644 16,357,085 11,429,367 15,044,498
_____________________________________________________________________________________________________________________________
Total increase in net assets 2,990,228 21,908,990 6,977,579 18,221,168
Net assets at beginning of year 117,168,404 95,259,414 64,857,356 46,636,188
_____________________________________________________________________________________________________________________________
Net assets at end of year
(including undistributed net investment income
for IDS Ohio of $37 for 1993) $120,158,632 $117,168,404 $ 71,834,935 $ 64,857,356
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 32
Notes to financial statements
IDS California Tax-Exempt Trust
IDS Special Tax-Exempt Series Trust
___________________________________________________________________
1. Summary of significant accounting policies
IDS California Tax-Exempt Trust and IDS Special Tax-Exempt Series
Trust were organized as Massachusetts business trusts. IDS
California Tax-Exempt Trust includes only IDS California Tax-Exempt
Fund. IDS Special Tax-Exempt Series Trust is a "series fund" that
is presently comprised of six individual funds, including IDS
Massachusetts Tax-Exempt Fund, IDS Michigan Tax-Exempt Fund, IDS
Minnesota Tax-Exempt Fund, IDS New York Tax-Exempt Fund and IDS
Ohio Tax-Exempt Fund (the funds). The funds are non-diversified,
open-end management investment companies as defined in the
Investment Company Act of 1940 (as amended). The funds concentrate
their investments in a single state and therefore may have more
credit risk related to the economic conditions of the respective
state than funds that have a broader geographical diversification.
Significant accounting policies followed by the funds are
summarized below:
Valuation of securities
All securities are valued at the close of each business day.
Securities for which market quotations are not readily available
are valued at fair value according to methods selected in good
faith by the board of trustees. Determination of fair value
involves, among other things, reference to market indexes, matrixes
and data from independent brokers. Short-term securities maturing
in more than 60 days from the valuation date are valued at the
market price or approximate market value based on current interest
rates; those maturing in 60 days or less are valued at amortized
cost.
Futures transactions
In order to gain exposure to or protect itself from changes in the
market, each fund may buy and sell interest rate futures contracts.
Risks of entering into futures contracts and related options
include the possibility that there may be an illiquid market and
that a change in the value of the contract or option may not
correlate with changes in the value of the underlying securities.
Upon entering into a futures contract, each fund is required to
deposit either cash or securities in an amount (initial margin)
equal to a certain percentage of the contract value. Subsequent
payments (variation margin) are made or received by each fund each
day. The variation margin payments are equal to the daily changes
in the contract value and are recorded as unrealized gains and
losses. Each fund recognizes a realized gain or loss when the
contract is closed or expires.
<PAGE>
PAGE 33
Notes to financial statements
IDS California Tax-Exempt Trust
IDS Special Tax-Exempt Series Trust
___________________________________________________________________
1. Summary of significant accounting policies (continued)
Federal taxes
Since each fund's policy is to comply with all sections of the
Internal Revenue Code applicable to regulated investment companies
and to distribute all of its taxable income to shareholders, no
provision for income or excise taxes is required.
Net investment income (loss) and net realized gains (losses) may
differ for financial statement and tax purposes primarily because
of the deferral of losses on certain futures contracts, the
recognition of certain foreign currency gains (losses) as ordinary
income (loss) for tax purposes, and losses deferred due to "wash
sale" transactions. The character of distributions made during the
year from net investment income or net realized gains may differ
from their ultimate characterization for federal income tax
purposes. Also, due to the timing of dividend distributions, the
fiscal year in which amounts are distributed may differ from the
year that the income or realized gains (losses) were recorded by
the fund.
Dividends to shareholders
Dividends from net investment income, declared daily and paid
monthly, are reinvested in additional shares of each fund at net
asset value or payable in cash. Capital gains, when available, are
distributed along with the last income dividend at the end of the
calendar year.
Other
Security transactions are accounted for on the date securities are
purchased or sold. Interest income, including level-yield
amortization of premium and discount, is accrued daily.
___________________________________________________________________
2. Expenses and sales charges
Under terms of an agreement dated Nov. 14, 1991, each fund pays IDS
Financial Corporation (IDS) a fee for managing its investments,
recordkeeping and other specified services. The fee is a percentage
of each fund's average daily net assets consisting of a group asset
charge in reducing percentages from 0.46% to 0.32% annually on the
combined net assets of all non-money market funds in the IDS MUTUAL
FUND GROUP and an individual annual asset charge of 0.13% of
average daily net assets for each fund.
Each fund also pays IDS a distribution fee at an annual rate of $6
per shareholder account and a transfer agency fee at an annual rate
of $15.50 per shareholder account. The transfer agency fee is
reduced by earnings on monies pending shareholder redemptions.
<PAGE>
PAGE 34
Notes to financial statements
IDS California Tax-Exempt Trust
IDS Special Tax-Exempt Series Trust
___________________________________________________________________
2. Expenses and sales charges (continued)
IDS will assume and pay any expenses (except taxes and brokerage
commissions) that exceed the most restrictive applicable state
expense limitation.
Sales charges by IDS Financial Services Inc. for distributing the
funds' shares were $1,177,341 for IDS California, $867,225 for IDS
Massachusetts, $560,739 for IDS Michigan, $2,458,058 for IDS
Minnesota, $728,241 for IDS New York and $593,137 for IDS Ohio
Tax-Exempt Funds for the year ended June 30, 1994.
Each fund also has a retirement plan for its independent trustees.
Upon retirement, trustees receive monthly payments equal to
one-half of the retainer fee for as many months as they served as
trustees up to 120 months. There are no death benefits. The plan is
not funded but each fund recognizes the cost of payments during the
time the trustees serve on the board. The retirement plan expense
amounted to $2,243 for IDS California, $1,640 for IDS
Massachusetts, $3,928 for IDS Minnesota, $1,800 each for IDS
Michigan, IDS New York and IDS Ohio Tax-Exempt Funds for the year
ended June 30, 1994.
___________________________________________________________________
3. Securities transactions
For the year ended June 30, 1994, cost of purchases and proceeds
from sales (other than short-term obligations) aggregated
$82,551,185 and $71,318,373 for IDS California, $16,693,428 and
$4,406,310 for IDS Massachusetts, $20,950,381 and $11,646,528 for
IDS Michigan, $85,238,653 and $55,076,357 for IDS Minnesota,
$22,253,738 and $11,722,684 for IDS New York and $19,654,275 and
$7,444,006 for IDS Ohio Tax-Exempt Funds. Realized gains and losses
are determined on an identified cost basis.
<PAGE>
PAGE 35
Notes to financial statements
IDS California Tax-Exempt Trust
IDS Special Tax-Exempt Series Trust
___________________________________________________________________
4. Share transactions
Transactions in shares of each fund for the years indicated are as
follows:
Number of shares:
<TABLE>
<CAPTION>
________________________________________________________________________________________________________________________
California Tax-Exempt Fund Massachusetts Tax-Exempt Fund Michigan Tax-Exempt Fund
_____________________________ ______________________________ ______________________________
Year ended June 30, Year ended June 30, Year ended June 30,
1994 1993 1994 1993 1994 1993
________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C>
Sold 6,578,766 8,197,569 4,061,994 4,217,029 2,687,659 3,154,702
Issued for reinvested
distributions 1,962,600 1,777,866 558,167 438,573 562,683 451,734
Redeemed (7,091,287) (4,641,462) (2,564,761) (1,380,830) (1,739,752) (1,088,585)
________________________________________________________________________________________________________________________
Net increase 1,450,079 5,333,973 2,055,400 3,274,772 1,510,590 2,517,851
________________________________________________________________________________________________________________________
Number of shares:
________________________________________________________________________________________________________________________
Minnesota Tax-Exempt Fund New-York Tax-Exempt Fund Ohio Tax-Exempt Fund
_____________________________ ______________________________ ______________________________
Year ended June 30, Year ended June 30, Year ended June 30,
1994 1993 1994 1993 1994 1993
________________________________________________________________________________________________________________________
Sold 14,961,095 18,162,534 3,952,327 4,171,087 3,231,719 3,465,518
Issued for reinvested
distributions 3,599,781 3,126,057 999,332 872,831 562,446 454,076
Redeemed (13,233,479) (7,491,955) (3,127,657) (1,944,622) (1,753,354) (1,139,720)
________________________________________________________________________________________________________________________
Net increase 5,327,397 13,796,636 1,824,002 3,099,296 2,040,811 2,779,874
________________________________________________________________________________________________________________________
</TABLE>
___________________________________________________________________
5. Interest rate futures contracts
Investments in securities at June 30, 1994, included securities
valued at $1,067,400 for IDS California, $1,011,840 for IDS
Minnesota and $958,820 for IDS New York Tax-Exempt Funds that were
pledged as collateral to cover initial margin deposits on 200, 275
and 90 purchase contracts, respectively. The market value of the
open contracts at June 30, 1994, was $20,243,750 for IDS
California, $27,835,156 for IDS Minnesota and $9,109,688 for IDS
New York Tax-Exempt Funds with a net unrealized loss of $680,375
for IDS California, $936,218 for IDS Minnesota and $306,125 for
IDS New York Tax-Exempt Funds.
<PAGE>
PAGE 36
Notes to financial statements
IDS California Tax-Exempt Trust
IDS Special Tax-Exempt Series Trust
___________________________________________________________________
6. Capital loss carryover
For federal income tax purposes, capital loss carryovers were
$3,420,653 for IDS California, $199,063 for IDS Massachusetts,
$2,753,600 for IDS Minnesota, $1,267,843 for IDS New York and
$185,465 for IDS Ohio Tax-Exempt Funds at June 30, 1994. These
capital loss carryovers will expire in 1996 through 2002 if not
offset by subsequent capital gains.
___________________________________________________________________
7. Financial highlights
"Financial highlights" showing per share data and selected
information are presented on pages 5-10 of the prospectus.
<PAGE>
PAGE 37
<TABLE>
<CAPTION>
Investments in securities
IDS California Tax-Exempt Fund
(Percentage represents value of
June 30, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (98.3%)
_____________________________________________________________________________________________________________________________
Name of issuer and Coupon Maturity Principal Value(a)
title of issue (b,c,f) rate amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Adelanto Improvement Agency Tax Allocation Refunding Bonds
Series B (FGIC Insured) 5.50% 2023 $3,000,000 $ 2,647,650
Aliso Viejo Orange County District Community Facilities District #88-1
Special Tax Bonds Series 1992A 7.35 2018 3,000,000 3,451,590
Burbank Redevelopment Agency Tax Allocation Bonds Golden State Series 1992A 6.00 2013 1,500,000 1,414,665
Chapman College Educational Facilities Authority Revenue Bonds
Series 1989B 7.50 2018 500,000 518,400
Chico Walker Senior Housing Insured Revenue Bonds The Lodge Series 1993A 5.70 2023 1,500,000 1,284,585
Clearlake Redevelopment Agency Highlands Park Community Development
Tax Allocation Bonds Series 1993 6.40 2023 1,420,000 1,293,947
Eastern Municipal Water District Riverside County Water & Sewer
Revenue Certificates of Participation Series 1991 6.00 2023 1,000,000 914,510
Eastern Municipal Water District Riverside County Water & Sewer
Pre-Refunded Revenue Certificates of Participation Series 1991
(FGIC Insured) 6.50 2020 3,000,000 3,277,650
Eden Township Hospital District Insured Health Facility Refunding Revenue
Certificate of Participation Series 1993 (California Mortgage Insured) 5.75 2012 3,000,000 2,707,380
El Camino Hospital District Hospital Pre-Refunded Revenue
Certificate of Participation Series A 8.50 2017 1,500,000 1,691,895
Fontana Redevelopment Agency Refunding Certificate of Participation
Police Facility Series 1993 5.625 2016 1,750,000 1,541,400
Foothill-De Anza Community College Santa Clara County Refunding
Certificate of Participation Series 1993 (Connie Lee Insured) 5.25 2021 1,675,000 1,403,801
Gilroy Las Animas Technology Park Refunding Bonds District #2 Series 1988-1 8.40 2006-07 500,000 518,611
Indian Wells Improvement Bonds Assessment District #13 7.50 2008 430,000 442,431
Lancaster Redevelopment Agency Tax Allocation Bonds (MBIA Insured) 5.80 2023 2,500,000 2,293,750
Long Beach Harbor Revenue Bonds AMT Series 1989A 7.25 2019 7,000,000 (e) 7,471,800
Los Angeles Convention & Exhibition Center Pre-Refunded
Certificate of Participation Series 1989A 7.00 2020 5,000,000 5,517,150
Los Angeles Convention & Exhibition Center Pre-Refunded
Certificate of Participation Series 1989A 7.30 2009 1,000,000 1,112,500
Los Angeles Convention & Exhibition Center Pre-Refunded
Certificate of Participation Series 1989A 7.375 2018 2,900,000 3,235,965
Los Angeles County Transportation Commission Sales Tax Refunded
Revenue Bonds
Series A 7.00 2019 4,150,000 4,284,003
Los Angeles County Transportation Commission Sales Tax Pre-Refunded
Revenue Bonds
Series A 8.00 2016 2,000,000 2,217,760
Los Angeles County Transportation Commission Sales Tax Pre-Refunding
Revenue Bonds
Series 1988A 7.875 2008 500,000 562,715
Los Angeles County Transportation Commission Sales Tax Refunding
Revenue Bonds
Series 1989A 7.40 2015 2,000,000 2,170,000
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE 38
Investments in securities
IDS California Tax-Exempt Fund
(Percentage represents value of
June 30, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (continued)
_____________________________________________________________________________________________________________________________
Name of issuer and Coupon Maturity Principal Value(a)
title of issue (b,c,f) rate amount
_____________________________________________________________________________________________________________________________
Los Angeles County Transportation Commission Sales Tax Pre-Refunded
Revenue Bonds
Series A 7.60% 2012 $ 640,000 $ 690,630
Los Angeles Department of Water & Power Electric Plant Revenue Bonds
Series 1990 7.125 2030 6,500,000 7,173,270
Los Angeles Department of Water & Power Waterworks Refunding Revenue Bonds 5.80 2024 2,900,000 2,633,780
Los Angeles Multi-family Housing Revenue Bonds AMT (FHA Insured) 7.85 2029 130,000 138,272
Los Angeles Multi-family Housing Revenue Bonds AMT Park Parthenia
Series 1986A
(GNMA Insured) 7.40 2022 1,000,000 1,041,470
Los Angeles Single Family Home Mortgage Revenue Bonds AMT Series 1991A
(GNMA & FNMA Insured) 6.875 2025 5,700,000 5,721,033
Los Angeles State Building Authority Lease Pre-Refunded Revenue Bonds
State Department of General Services Lease Series 1988A 7.25 2006 3,000,000 3,285,150
Los Angeles State Building Authority Lease Pre-Refunded Revenue Bonds
State Department of General Services Lease Series 1988A 7.50 2011 1,500,000 1,657,245
Los Angeles State Harbor Revenue Bonds Escrowed to Maturity 7.60 2018 1,000,000 1,137,200
Los Angeles USD Refunding Certficate of Participation (FSA Insured) 5.50 2010 1,000,000 921,880
Los Angeles Wastewater System Refunding Revenue Bonds Series A
(MBIA Insured) 5.70 2020 5,775,000 5,246,067
Los Angeles Wastewater System Refunding Revenue Bonds Series A
(MBIA Insured) 5.80 2021 4,250,000 3,909,107
Los Angeles Wastewater System Pre-Refunded Revenue Bonds Series 1987 8.125 2017 1,000,000 1,121,720
Marin County Municipal Water District Revenue Bonds Series 1993 5.65 2023 3,500,000 3,085,005
Mayer Memorial Hospital District Insured Health Facility Revenue Bonds
(California Mortgage Insured) 5.50 2013 950,000 834,223
Modesto Certificate of Participation Pre-Refunded Bonds Community Center 8.10 2015 1,000,000 1,120,960
Modesto Irrigation Certificate of Participation 7.25 2015 2,000,000 2,134,720
Mount Diablo Hospital District Hospital Pre-Refunded Revenue Bonds
Series 1990A (AMBAC Insured) 7.00 2017 3,000,000 3,360,840
Northern California Public Power Authority Power Pre-Refunded Revenue Bonds
Hydroelectric Series 1986B-3 8.00 2024 2,000,000 2,226,840
Northern California Public Power Authority Power Pre-Refunded Revenue Bonds
Hydroelectric #1 Series 1986B-1 8.00 2024 2,100,000 2,338,182
Northern California Public Power Authority Refunding Revenue Bonds
Geothermal #3 Series 1985A 7.00 2010 830,000 839,645
Northern California Public Power Authority Refunding Revenue Bonds
Geothermal #3 Series 1987A 7.00 2007 6,825,000 7,099,229
Northern California Transmission Agency California-Oregon Transmission
Pre-Refunded Revenue Bonds Series 1990A (MBIA Insured) 7.00 2024 2,000,000 2,217,320
Pittsburg Public Financing Authority Wastewater
Refunding Bonds Series 1994A (FGIC Insured) 5.125 2015 1,000,000 853,020
Pleasanton Joint Powers Financing Authority Reassessment Revenue Bonds
Series 1993A 6.15 2012 1,960,000 1,826,054
Port of Oakland Revenue Bonds AMT Series 1989A (BIG Insured) 7.60 2016 500,000 542,340
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE 39
Investments in securities
IDS California Tax-Exempt Fund
(Percentage represents value of
June 30, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (continued)
_____________________________________________________________________________________________________________________________
Name of issuer and Coupon Maturity Principal Value(a)
title of issue (b,c,f) rate amount
_____________________________________________________________________________________________________________________________
Rancho Cucamonga Redevelopment Agency 1990 Tax Allocation Bonds
(MBIA Insured) 7.125% 2019 $3,460,000 $ 3,724,586
Rancho Cucamonga Redevelopment Agency 1990 Tax Allocation Pre-Refunded Bonds
(MBIA Insured) 7.125 2019 3,540,000 3,942,180
Rancho Mirage Joint Powers Finance Authority Certificate of Participation
Eisenhower Memorial Hospital 7.00 2022 4,250,000 4,314,897
Riverside County Transportation Commission Sales Tax Revenue Bonds
Series 1993A (AMBAC Insured) 5.75 2009 1,750,000 1,710,520
Riverside Electric Revenue Bonds Series 1991 6.00 2015 6,530,000 6,246,206
Sacramento Municipal Utility District Series R 6.00 2015-17 7,500,000 7,057,770
Sacramento Municipal Utility District Pre-Refunded Series R 7.125 2013 3,000,000 3,228,420
Sacramento Municipal Utility District Pre-Refunded Series V 7.50 2018 2,775,000 3,046,867
Sacramento Municipal Utility District Pre-Refunded Series W 7.50 2018 1,980,000 2,173,981
Sacramento Municipal Utility District Pre-Refunded Series Y (MBIA Insured) 6.75 2019 3,400,000 3,769,682
Sacramento Redevelopment Agency Tax Allocation Bonds Series 1990A
(MBIA Insured) 6.50 2013 3,500,000 3,546,725
San Diego County Capital Asset Lease Certificate of Participation
Series 1993 Inverse Floater (AMBAC Insured) 7.82 2007 3,200,000 (d) 2,992,000
San Diego Industrial Development Revenue Bonds San Diego Gas & Electric
Series A 7.625 2021 1,000,000 1,058,890
San Diego Regional Transportation Commission Sales Tax
Pre-Refunded Revenue Bonds Limited Tax Series 1989A 6.25 2008 5,030,000 5,303,582
San Francisco Redevelopment Financing Authority Tax Allocation
Refunding Bonds Series B (FGIC Insured) 5.25 2017 1,500,000 1,282,095
San Joaquin County Pre-Refunded Certificate of Participation
Human Services Facility Series 1989 (BIG Insured) 6.70 2009 3,500,000 3,817,450
San Joaquin County Certificate of Participation
Jail & Sheriffs Operation Center (MBIA Insured) 6.75 2015 2,000,000 2,198,760
San Jose Redevelopment Agency Merged Area Tax Allocation Bonds
Series 1993 Inverse Floater (MBIA Insured) 7.448 2014 3,000,000 (d) 2,385,000
San Mateo County Transit District Limited Tax Pre-Refunded Bonds
Series 1990A (MBIA Insured) 6.50 2020 2,500,000 2,662,900
Santa Clara County Pre-Refunded Certificates of Participation
Housing Authority Office 7.875 2017 630,000 668,209
Santa Clara County Transit District Sales Tax Revenue Bonds Series 1991A 6.25 2021 9,980,000 9,512,038
Santa Cruz Certificate of Participation 8.375 2007 1,220,000 1,243,570
Santa Rosa Sonoma County Wastewater Service Facility District
Pre-Refunded Improvement Bonds Series 1989 7.80 2015 1,000,000 1,103,410
Sonoma County Community Redevelopment Agency Tax Allocation Bonds
Windsor Redevelopment Series C 7.90 2014 415,000 422,943
Southern California Home Financing Authority Single Family Mortgage
Revenue Bonds AMT 1990B (GNMA Insured) 7.75 2024 665,000 683,879
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE 40
Investments in securities
IDS California Tax-Exempt Fund
(Percentage represents value of
June 30, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (continued)
_____________________________________________________________________________________________________________________________
Name of issuer and Coupon Maturity Principal Value(a)
title of issue (b,c,f) rate amount
_____________________________________________________________________________________________________________________________
Southern California Public Power Authority Pre-Refunded Revenue Bonds
Palo Verde Series B 7.125% 2015 $5,000,000 $ 5,350,450
Southern California Public Power Authority Transmission Pre-Refunded
Revenue Bonds
Series 1986A 7.875 2018 1,500,000 1,640,250
Southern California Public Power Authority Transmission Pre-Refunded
Revenue Bonds
Series 1986B 7.00 2022 5,000,000 5,363,600
Southern California Public Power Authority Transmission Revenue Bonds
Series 1986B 7.00 2022 1,760,000 1,855,410
Southern California Public Power Authority Transportation Bonds Series B 7.375 2021 400,000 430,132
State Department of Water Resources Water System Pre-Refunded Revenue Bonds
Central Valley Series D 7.70 2024 2,400,000 2,655,720
State Educational Facilities Authority Revenue Bonds Stanford University
Series J 6.00 2016 7,275,000 7,082,358
State Health Facilities Finance Authority Revenue Bonds Kaiser Permanente
Series 1989A 7.00 2018 2,000,000 2,100,360
State Health Facility Finance Authority Pre-Refunded Revenue Bonds
St. Joseph Health System Series 1989A 6.90 2014 3,500,000 3,840,900
State Housing Finance Agency Home Mortgage Revenue Bonds Series 1986B 6.90 2016 1,990,000 2,004,547
State Housing Finance Agency Home Single Family Mortgage Revenue Bonds
Series 1991A 7.375 2017 2,315,000 2,337,409
State Pollution Control Finance Authority Pollution Control Revenue
Bonds AMT
Southern California Edison Series 1988A 6.90 2006 2,000,000 2,066,900
State Public Works Board University of California Lease Pre-Refunded
Revenue Bonds
Series 1990A 7.00 2015 2,250,000 2,513,048
State Public Works Board Various Community Colleges Lease Revenue Bonds
Series 1992A (AMBAC Insured) 6.00 2017 1,465,000 1,397,669
State University Parking System Revenue Bonds 7.70 2009 225,000 244,780
State University Revenue Bonds San Jose State University Student Union
Series B 7.60 2007 150,000 161,348
Statewide Community Development Authority Health Facilities Revenue Bonds
Unihealth America Series 1993A Inverse Floater (AMBAC Insured) 8.03 2011 5,000,000 (d) 4,368,750
Stockton Refunding Wastewater System Certificate of Participation
(AMBAC Insured) 5.50 2015 1,250,000 1,127,088
Stockton Single Family Mortgage Revenue Bonds AMT Series 1990A 7.50 2023 145,000 153,147
(GNMA Insured)
Suisun City Redevelopment Agency Tax Allocation Refunded Bonds
(MBIA Insured) 5.50 2023 1,000,000 877,960
Turlock Irrigation District Pre-Refunded Bonds Series 1986A 7.75 2018 1,000,000 1,070,050
University of Southern California Educational Facilities Authority
Pre-Refunded Revenue Bonds Series 1989B 6.75 2015 5,000,000 5,152,100
_____________________________________________________________________________________________________________________________
See accompany notes to investments in securities.
<PAGE>
PAGE 41
Investments in securities
IDS California Tax-Exempt Fund
(Percentage represents value of
June 30, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (continued)
_____________________________________________________________________________________________________________________________
Name of issuer and Coupon Maturity Principal Value(a)
title of issue (b,c,f) rate amount
_____________________________________________________________________________________________________________________________
Vacaville Limited Obligation Improvement Bonds
Water Rights Assessment District 8.00% 2007 $ 925,000 $ 952,694
Walnut Valley Unified School District Unlimited Tax General
Obligation Bonds
(MBIA Insured) 6.00 2014-15 2,870,000 2,783,816
_____________________________________________________________________________________________________________________________
Total municipal bonds
(Cost: $238,921,908) $250,756,406
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $238,921,908)(g) $250,756,406
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE 42
Investments in securities
IDS California Tax-Exempt Fund
June 30, 1994
___________________________________________________________________
Notes to investments in securities
___________________________________________________________________
(a) Securities are valued by procedures described in Note 1 to the
financial statements.
(b) Investments in bonds, by rating category as a percentage of
total bonds, are as follows:
(Unaudited)
Rating 6-30-94 6-30-93
___________________________________________________________________
AAA 63% 38%
AA 18 35
A 16 19
BBB and below 3 3
Non-rated -- 5
Total 100% 100%
___________________________________________________________________
(c) The following abbreviations are used in portfolio descriptions
to identify the insurer of the issue:
AMBAC -- American Municipal Bond Association Corporation
BIG -- Bond Investors Guarantee
FGIC -- Financial Guarantee Insurance Corporation
FHA -- Federal Housing Authority
FNMA -- Federal National Mortgage Association
FSA -- Financial Security Assurance
GNMA -- Government National Mortgage Association
MBIA -- Municipal Bond Investors Assurance
(d) Inverse Floaters represents securities which pay interest at a
rate that increases (decreases) based on (decreases) increases
of market short-term rates. Interest rate disclosed is the rate
in effect on June 30, 1994.
(e) Partially pledged as inital deposit on the following open
interest rate futures purchase contracts (see Note 5 to the
financial statements):
Type of security Par Value
U.S. Treasury Bond, Sept. 1994 $20,000,000
(f) The following abbreviation is used in portfolio descriptions:
AMT -- Alternative Minimum Tax
(g) At June 30, 1994, the cost of securities for federal income tax
purposes was $238,863,654 and the aggregate gross unrealized
appreciation and depreciation based on that cost was:
Unrealized appreciation $15,609,964
Unrealized depreciation (3,717,212)
Net unrealized appreciation $11,892,752
<PAGE>
PAGE 43
</TABLE>
<TABLE>
<CAPTION>
Investments in securities
IDS Massachusetts Tax-Exempt Fund
(Percentages represent
June 30, 1994 value of investments
compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (96.8%)
_____________________________________________________________________________________________________________________________
Name of issuer and Coupon Maturity Principal Value(a)
title of issue (b,c,d) rate amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Ashburnham-Westminister Regional School District Unlimited Tax
General Obligation School Bonds (MBIA Insured) 6.00% 2013 $1,000,000 $ 978,630
Bay Transit Authority Series A (Secondary FGIC Insured) 5.75 2022 1,000,000 922,160
Bay Transportation Authority General Transportation System
Refunding Bonds Series 1992B 6.20 2016 1,500,000 1,478,730
Boston City Hospital Refunding Revenue Bonds Series B (FHA Insured) 5.75 2023 3,000,000 2,701,890
Boston City Hospital Pre-Refunded Revenue Bonds Series A (FHA Insured) 7.625 2021 1,000,000 1,142,590
Boston General Obligation Bonds Series 1991A (MBIA Insured) 6.75 2011 500,000 550,740
Boston General Obligation Refunding Bonds Series 1993A (AMBAC Insured) 5.65 2009 1,500,000 1,445,115
Boston Industrial Development Financing Authority Revenue Bonds
Massachusetts College of Pharmacy Series 1993A (Connie Lee Insured) 5.25 2026 1,000,000 837,850
Boston Water & Sewer Commission General Pre-Refunded Revenue Bonds Senior
Pre-Refunded Series 1991A (FGIC Insured) 7.00 2018 1,000,000 1,119,640
Boston Water & Sewer Commission General Subordinate Revenue Bonds Series A
(BIG Insured) 6.00 2008 500,000 502,785
Boston Water & Sewer Commission Senior Revenue Bonds Series A 7.875 2013 365,000 396,186
Boston Water & Sewer Commission Senior Pre-Refunded Revenue Bonds Series A 7.875 2013 210,000 229,364
Commonwealth General Obligation Consolidated Loan Pre-Refunded Bonds
Series 1990A (FGIC Insured) 7.25 2009 500,000 558,592
Greater Lawrence Sanitary District North Andover General Obligation Bonds 8.50 2005 625,000 656,362
Health & Educational Facilities Authority Pre-Refunded Bonds
Bentley College Series G 8.125 2017 400,000 423,952
Health & Educational Facilities Authority Refunding Revenue Bonds
Beth Israel Hospital Series 1989E 7.00 2009-14 550,000 577,468
Health & Educational Facilities Authority Revenue Bonds
Berkshire Health Systems Series A (MBIA Insured) 7.50 2008 500,000 549,335
Health & Educational Facilities Authority Revenue Bonds
Berkshire Health Systems Series C 5.90 2011 1,000,000 888,840
Health & Educational Facilities Authority Pre-Refunded Revenue Bonds
Beverly Hospital Series D (MBIA Insured) 7.30 2019 400,000 444,660
Health & Educational Facilities Authority Revenue Bonds
Boston College Series J (FGIC Insured) 6.625 2021 2,000,000 2,037,260
Health & Educational Facilities Authority Revenue Bonds
Boston College Series K 5.25 2023 1,000,000 850,460
Health & Educational Facilities Authority Revenue Bonds
Brigham & Women's Hospital Series C 6.75 2021 500,000 506,285
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE 44
Investments in securities
IDS Massachusetts Tax-Exempt Fund
(Percentages represent
June 30, 1994 value of investments
compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (continued)
_____________________________________________________________________________________________________________________________
Name of issuer and Coupon Maturity Principal Value(a)
title of issue (b,c,d) rate amount
_____________________________________________________________________________________________________________________________
Health & Educational Facilities Authority Revenue Bonds
Brigham & Women's Hospital Series 1991D 6.75% 2024 $1,000,000 $ 1,016,820
Health & Educational Facilities Authority Revenue Bonds
Charlton Memorial Hospital Series 1991B 7.25 2013 1,750,000 1,819,037
Health & Educational Facilities Authority Pre-Refunded Revenue Bonds
Children's Hospital Series D 7.75 2018 500,000 556,405
Health & Educational Facilities Authority Revenue Bonds
Holyoke Hospital Series B 6.50 2015 500,000 471,650
Health & Educational Facilities Authority Pre-Refunded Revenue Bonds
Lahey Clinic Medical Center Series A (MBIA Insured) 7.625 2018 500,000 555,090
Health & Educational Facilities Authority Revenue Bonds
Lahey Clinic Medical Center Series B (MBIA Insured) 5.625 2015 1,500,000 1,379,685
Health & Educational Facilities Authority Revenue Bonds
Lahey Clinic Medical Center Series B (MBIA Insured) 5.375 2023 1,000,000 859,770
Health & Educational Facilities Authority Revenue Bonds
Melrose-Wakefield Hospital Series 1992B 6.375 2016 1,000,000 951,840
Health & Educational Facilities Authority Revenue Bonds
McLean Hospital Series 1992C (FGIC Insured) 6.625 2015 1,250,000 1,279,800
Health & Educational Facilities Authority Revenue Bonds
Morton Hospital & Medical Center Series B (Connie Lee Insured) 5.25 2014 1,000,000 873,300
Health & Educational Facilities Authority Revenue Bonds
Mount Auburn Hospital Series A (MBIA Insured) 7.875 2018 205,000 227,060
Health & Educational Facilities Authority Revenue Bonds
New England Deaconess Hospital Series 1992D 6.625 2012 1,000,000 992,140
Health & Educational Facilities Authority Revenue Bonds
Newton Wellesley Hospital Series 1991D (MBIA Insured) 7.00 2015 1,000,000 1,071,640
Health & Educational Facilities Authority Pre-Refunded Revenue Bonds
Northeastern University Series 1989C (AMBAC Insured) 7.10 2006 1,000,000 1,088,000
Health & Educational Facilities Authority Pre-Refunded Revenue Bonds
Northeastern University Series E (MBIA Insured) 6.55 2022 1,000,000 1,014,010
Health & Educational Facilities Authority Revenue Bonds
South Shore Hospital Series 1992D (MBIA Insured) 6.50 2022 1,000,000 1,010,240
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE 45
Investments in securities
IDS Massachusetts Tax-Exempt Fund
(Percentages represent
June 30, 1994 value of investments
compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (continued)
_____________________________________________________________________________________________________________________________
Name of issuer and Coupon Maturity Principal Value(a)
title of issue (b,c,d) rate amount
_____________________________________________________________________________________________________________________________
Health & Educational Facilities Authority Pre-Refunded Revenue Bonds
Stonehill College Series 1990D (AMBAC Insured) 7.70% 2020 $1,000,000 $ 1,145,540
Health & Educational Facilities Authority Revenue Bonds
Suffolk University Series B (Connie Lee Insured) 6.35 2022 2,495,000 2,459,621
Health & Educational Facilities Authority Pre-Refunded Revenue Bonds
Wentworth Institute of Technology Series A (AMBAC Insured) 7.40 2010 750,000 843,810
Health & Educational Facilities Authority Revenue Bonds
Wentworth Institute of Technology Series B (Connie Lee Insured) 5.50 2023 1,500,000 1,304,580
Holyoke Unlimited Tax General Obligation Municipal Purpose Loans
Series 1993B (FSA Insured) 6.125 2013 1,100,000 1,089,550
Industrial Finance Agency 1st Mortgage Pre-Refunded Revenue Bonds
Berkshire Retirement Community at Lennox 9.875 2018 200,000 227,394
Industrial Finance Agency Pollution Control Refunding Revenue Bonds
Eastern Edison Series 1993 5.875 2008 1,500,000 1,402,440
Industrial Finance Agency Resource Recovery Revenue Bonds AMT
Ogden Haverhill Series 1986A (AMBAC Insured) 7.375 2011 175,000 188,454
Industrial Finance Agency Resource Recovery Revenue Bonds
SEMASS Series 1991A 9.00 2015 1,500,000 1,635,660
Industrial Finance Agency Revenue Bonds Brandeis University (MBIA Insured) 6.80 2019 700,000 721,665
Industrial Finance Agency Revenue Bonds Museum of Science Series 1989
(FSA Insured) 7.30 2009 1,000,000 1,119,830
Leominster General Obligation Bonds (MBIA Insured) 7.50 2009 1,000,000 1,101,580
Lowell Limited Tax General Obligation State Qualified Refunding Bonds
Series A (FSA Insured) 5.50 2010 800,000 747,640
Mansfield General Obligation Bonds (AMBAC Insured) 6.70 2011 1,000,000 1,038,480
Municipal Wholesale Electric Power Supply System Revenue Bonds Series A 6.00 2018 1,500,000 1,402,545
Municipal Wholesale Electric Power Supply System Pre-Refunded Revenue Bonds
Series 1992B 6.75 2017 1,395,000 1,540,038
Municipal Wholesale Electric Power Supply System Revenue Bonds Series 1992B 6.75 2017 605,000 618,667
Nantucket General Obligation Bonds 6.80 2011 1,000,000 1,071,710
North Andover General Obligation Bonds (MBIA Insured) 7.35 2008 310,000 342,091
Port Authority Pre-Refunded Revenue Bonds AMT Series 1988A 7.75 2018 485,000 512,640
Port Authority Revenue Bonds AMT Series 1988A 7.75 2018 515,000 539,566
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE 46
Investments in securities
IDS Massachusetts Tax-Exempt Fund
(Percentages represent
June 30, 1994 value of investments
compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (continued)
_____________________________________________________________________________________________________________________________
Name of issuer and Coupon Maturity Principal Value(a)
title of issue (b,c,d) rate amount
_____________________________________________________________________________________________________________________________
Port Authority Revenue Bonds AMT Series 1990A (FGIC Insured) 7.50% 2020 $1,000,000 $ 1,089,230
Quincy Pre-Refunded Revenue Bonds Quincy City Hospital (FHA Insured) 7.875 2016 1,000,000 1,085,820
Quincy Refunding Revenue Bonds Quincy Hospital Issue Series 1993
(FSA Insured) 5.25 2016 1,000,000 878,170
Southeastern University Building Authority Refunding Revenue Bonds
Series 1986A 7.80 2016 100,000 106,214
Southeastern University Building Revenue Bonds 7.80 2011 325,000 345,195
Southern Berkshire Regional School District Unlimited Tax
General Obligation Pre-Refunded Bonds (AMBAC Insured) 7.55 2010 1,000,000 1,133,120
Springfield Limited Tax General Obligation Municipal Purpose Loan Bonds
Series 1993B (MBIA Insured) 6.00 2013 750,000 731,963
State College Building Authority Refunding Revenue Bonds Series 1986A 7.125 2006 150,000 157,572
State College Building Authority Refunding Revenue Bonds Series 1986A 7.25 2016 250,000 263,160
State General Obligation Consolidated Loan Bonds Series 1991A
(FGIC Insured) 6.00 2011 1,095,000 1,073,297
State Housing Finance Agency Housing Revenue Rental Bonds Series 1
(AMBAC Insured) 7.20 2026 850,000 861,653
State Housing Finance Agency Single Family Housing Revenue Bonds AMT
Series 13 7.95 2023 500,000 516,210
State Housing Finance Authority Residential Development Bonds Series 1992A
(FNMA Insured) 6.875 2011 1,000,000 1,037,230
State Housing Finance Authority Single Family Mortgage Housing
Revenue Bonds Series 4 7.375 2014 475,000 492,447
State Housing Finance Authority Single Family Mortgage Housing
Revenue Bonds AMT Series 7 8.10 2020 265,000 272,460
University of Lowell Building Authority Facilities Revenue Bonds
4th Series A 7.40 2007 125,000 133,589
University of Lowell Building Authority Facilities Revenue Bonds
4th Series A 7.60 2012 50,000 53,735
University of Massachusetts Building Authority Revenue Bonds Series A
(FSA Insured) 7.50 2014 500,000 547,505
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE 47
Investments in securities
IDS Massachusetts Tax-Exempt Fund
(Percentages represent
June 30, 1994 value of investments
compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (continued)
_____________________________________________________________________________________________________________________________
Name of issuer and Coupon Maturity Principal Value(a)
title of issue (b,c,d) rate amount
_____________________________________________________________________________________________________________________________
University of Massachusetts Building Authority Revenue Bonds Series A
Escrowed to Maturity 7.50% 2011 $ 120,000 $ 135,467
Water Resource Authority General Pre-Refunded Revenue Bonds Series 1990A 7.625 2014 500,000 567,805
Water Resource Authority General Pre-Refunded Revenue Bonds Series 1991A 6.50 2019 1,000,000 1,086,980
Water Resource Authority General Revenue Bonds Series 1993C 5.25 2020 1,400,000 1,161,258
_____________________________________________________________________________________________________________________________
Total municipal bonds
(Cost: $68,167,340) $ 69,748,962
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
(Percentages represent
value of investments
compared to net assets)
_____________________________________________________________________________________________________________________________
Short-term security (0.6%)
_____________________________________________________________________________________________________________________________
Issuer Annualized Amount Value(a)
yield on date payable at
of purchase maturity
_____________________________________________________________________________________________________________________________
Municipal note
Massachusetts Bay Transit Authority
03-01-95 3.10% $400,000 $ 401,072
_____________________________________________________________________________________________________________________________
Total short-term security
(Cost: $401,678) $ 401,072
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $68,569,018)(e) $ 70,150,034
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 48
Investments in securities
IDS Massachusetts Tax-Exempt Fund
June 30, 1994
Notes to investments in securities
___________________________________________________________________
(a) Securities are valued by procedures described in Note 1 to the
financial statements.
(b) Investments in bonds, by rating category as a percentage of
total bonds, are as follows:
(Unaudited)
Rating 06-30-94 06-30-93
___________________________________________________________________
AAA 64% 54%
AA 12 15
A 17 20
BBB and below 7 8
Non-rated -- 3
Total 100% 100%
___________________________________________________________________
(c) The following abbreviations are used in portfolio descriptions
to identify the insurer of the issue:
AMBAC -- American Municipal Bond Association Corporation
BIG -- Bond Investors Guarantee
FGIC -- Financial Guarantee Insurance Corporation
FHA -- Federal Housing Authority
FNMA -- Federal National Mortgage Association
FSA -- Financial Security Assurance
MBIA -- Municipal Bond Investors Assurance
(d) The following abbreviation is used in the portfolio
descriptions:
AMT -- Alternative Minimum Tax
(e) At June 30, 1994, the cost of securities for federal income tax
purposes was $68,596,143 and the aggregate gross unrealized
appreciation and depreciation based on that cost was:
Unrealized appreciation $3,213,492
Unrealized depreciation (1,659,601)
___________________________________________________________________
Net unrealized appreciation $1,553,891
___________________________________________________________________
<PAGE>
PAGE 49
<TABLE>
<CAPTION>
Investments in securities
IDS Michigan Tax-Exempt Fund (Percentages represent value of
June 30, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (97.7%)
_____________________________________________________________________________________________________________________________
Name of issuer and Coupon Maturity Principal Value(a)
title of issue (b,c,d) rate amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Alpena County Limited Tax Hospital Improvement Pre-Refunded Bonds
Series B (AMBAC Insured) 8.75% 2002 $ 150,000 $ 159,464
Auburn Hills Limited Tax General Obligation Street Improvement Bonds 6.00 2004 200,000 205,894
Battle Creek Water Supply System Pre-Refunded Revenue Bonds Series 1990B 6.375 2008-10 1,640,000 1,752,373
Buena Vista School District Saginaw County School Building & Site
Unlimited Tax General Obligation Pre-Refunded Bonds Series 1991 7.20 2016 1,500,000 1,675,140
Caledonia Community School Unlimited Tax General Obligation
Refunding Revenue Bonds (AMBAC Insured) 5.50 2022 2,000,000 1,793,420
Central Michigan University Board of Trustees
General Pre-Refunded Revenue Bonds Series 1987 (MBIA Insured) 7.90 2015 250,000 277,017
Chassell Township Schools County of Houghton Refunding Unlimited Tax
General Obligation Bonds Qualified School Bond Loan Fund 5.25 2020 1,045,000 891,657
Chelsea General Obligation Bonds (BIG Insured) 8.20 2006 145,000 163,205
Chippewa Valley School Macomb County Qualified School Building Loan Fund
Unlimited Tax General Obligation Bonds (FGIC Insured) 5.00 2021 1,000,000 828,130
Comstock Park Public School Kent County Unlimited Tax
General Obligation Pre-Refunded Bonds Series 1989 6.00 2016 400,000 422,732
Comstock Park Public School Kent County Unlimited Tax
General Obligation Pre-Refunded Bonds Series 1989 6.875 2010 260,000 284,079
Detroit General Obligation Pre-Refunded Bonds Distributable State Aid
Series 1989 (AMBAC Insured) 7.20 2009 1,000,000 1,105,490
Detroit Sewer Disposal Pre-Refunded Revenue Bonds 8.00 2008 500,000 552,320
Detroit Unlimited Tax General Obligation Bonds Series A 7.25 2009 1,000,000 1,029,320
Detroit Unlimited Tax General Obligation Bonds Series A 8.625 2007 100,000 109,725
Detroit Unlimited Tax General Obligation Bonds Series 1988A 7.875 2008 700,000 752,913
Detroit Water Supply System Pre-Refunded Revenue Bonds
Series 1988 (MBIA Insured) 7.875 2008 400,000 447,656
Detroit Water Supply System Refunding Revenue Bonds
Series 1993 (FGIC Insured) 5.00 2023 1,000,000 817,550
Dexter Community Schools Building Site & Refunding Unlimited Tax
General Obligation Bonds 5.00 2017 1,500,000 1,240,230
East Lansing School District School Building & Site Unlimited Tax
General Obligation Bonds Series 1991 6.625 2014 1,000,000 1,029,140
Eastern Michigan University Pre-Refunded Revenue Bonds Residence Hall 7.80 2006 205,000 221,035
Farmington Hills Hospital Finance Authority Revenue Bonds
Botsford General Hospital Series 1992A (MBIA Insured) 6.50 2022 1,500,000 1,510,485
Forest Hills School District Unlimited Tax General Obligation
Pre-Refunded Bonds 7.375 2015 1,000,000 1,117,190
Frenchtown Resort Drainage District Monroe County Drain
Pre-Refunded Bonds Series 1987 7.50 2011-12 615,000 687,976
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE 50
Investments in securities
IDS Michigan Tax-Exempt Fund (Percentages represent value of
June 30, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal Bonds (continued)
_____________________________________________________________________________________________________________________________
Name of issuer and Coupon Maturity Principal Value(a)
title of issue (b,c,d) rate amount
_____________________________________________________________________________________________________________________________
Garden City School District Authority Pre-Refunded Revenue Bonds 7.80% 2010 $ 305,000 $ 336,357
Grand Haven Electrical Pre-Refunded Revenue Bonds 6.75 2016 1,000,000 1,037,630
Grand Rapids Water Supply System Improvement
Pre-Refunded Revenue Bonds Series 1988 7.875 2018 700,000 777,861
Grand Rapids Water Supply System Improvement Pre-Refunded Revenue Bonds
Series 1990 (FGIC Insured) 7.25 2020 1,250,000 1,393,925
Grand Rapids Water Supply System Refunding Revenue Bonds Series 1991
(FGIC Insured) 5.75 2018 500,000 465,920
Holland School District Unlimited Tax General Obligation Bonds
Counties of Ottawa & Allegan 1989 School Building & Site Boards 7.375 2019 1,000,000 1,090,140
Inkster School District Unlimited Tax General Obligation
Pre-Refunded Bonds (AMBAC Insured) 7.00 2018 450,000 496,237
Isoco County Water Supply System Limited Tax General Obligation Bonds
(AMBAC Insured) 5.50 2008-10 575,000 553,610
Jackson County Unlimited Tax General Obligation Refunding Bonds
Series 1987 6.75 2011 150,000 160,197
Kalamazoo Hospital Financial Authorization Bronson Methodist Hospital
Pre-Refunded Bonds 9.375 2016 150,000 159,456
Kent County Hospital Pre-Refunded Revenue Bonds Butterworth Hospital
Series 1989A 7.00 2019 500,000 546,660
Kent County Hospital Pre-Refunded Revenue Bonds Butterworth Hospital
Series 1989A 7.25 2013 500,000 551,675
Kent County Refuse Disposal System Limited Tax
General Obligation Refunding Bonds Series 1987 8.40 2010 150,000 164,946
Laingsburg Community Schools Unlimited Tax General Obligation Bonds 6.375 2021 1,500,000 1,485,555
Lincoln Consolidated School District Refunding Revenue Bonds (FGIC Insured) 5.80 2014 1,000,000 942,640
Lincoln Consolidated School District Refunding Revenue Bonds (FGIC Insured) 5.85 2021 500,000 470,380
Marquette Hospital Finance Authority Refunding Revenue Bonds
Marquette General Hospital Series 1989C 7.50 2007-19 825,000 877,280
Monroe County Pollution Control Revenue Bonds AMT Detroit Edison
Fermi Plants Series 1990I (FGIC Insured) 7.65 2020 1,000,000 1,100,520
Monroe County Pollution Control Revenue Bonds AMT Detroit Edison
Fermi 2 Plants Series CC (AMBAC Insured) 7.50 2019 1,750,000 1,940,207
Muskegon Hospital Finance Authority Refunding Revenue Bonds Hackley Hospital
Series 1988A 8.00 2008 400,000 437,192
Northville Public Schools Unlimited Tax General Obligation Bonds
Series 1991B 7.00 2008 1,500,000 1,603,650
Oak Park School District Unlimited Tax General Obligation
Pre-Refunded Bonds 7.15 2009 705,000 765,461
Plymouth-Canton Community School District Series 1992C 6.50 2016 1,000,000 1,035,870
River Rouge School District #19 Unlimited Tax General Obligation Bonds
(FSA Insured) 5.50 2009 1,185,000 1,113,367
Rochester Hill Unlimited Tax General Obligation Bonds Series 1990A 6.00 2009-10 735,000 726,017
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE 51
Investments in securities
IDS Michigan Tax-Exempt Fund (Percentages represent value of
June 30, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal Bonds (continued)
_____________________________________________________________________________________________________________________________
Name of issuer and Coupon Maturity Principal Value(a)
title of issue (b,c,d) rate amount
_____________________________________________________________________________________________________________________________
Rockford Public Schools Kent County Unlimited Tax
General Obligation Pre-Refunded Bonds 7.375% 2019 $1,000,000 $ 1,117,190
Rockford Public Schools Unlimited Tax General Obligation Bonds
Qualified School Bond Loan Fund 5.875 2019 1,500,000 1,390,260
Southfield Public Schools Building & Site Unlimited Tax
General Obligation Bonds 5.875 2022 1,975,000 1,836,000
South Lake District Unlimited Tax General Obligation Bonds 6.80 2010 355,000 374,046
State Building Authority Refunding Revenue Bonds Series 1991I 6.25 2020 2,200,000 2,138,950
State Comprehensive Transportation Pre-Refunded Bonds Series 1986II 7.75 2011 135,000 144,669
State Hospital Finance Authority Hospital Pre-Refunded Revenue Bonds
Detroit Medical Center Series 1988A 8.125 2012 310,000 350,114
State Hospital Finance Authority Hospital Refunding Revenue Bonds
Detroit Medical Center Series 1988A 8.125 2012 90,000 98,731
State Hospital Finance Authority Hospital Refunding Revenue Bonds
Detroit Medical Center Series 1988B 8.00 2008 500,000 564,430
State Hospital Finance Authority Hospital Refunding Revenue Bonds
Sisters of Mercy Health Group Series 1993P (MBIA Insured) 5.25 2021 1,200,000 1,013,856
State Hospital Finance Authority Hospital Pre-Refunded Revenue Bonds
McLaren Obligated Group Series 1991A 7.50 2021 1,750,000 2,002,053
State Hospital Finance Authority Revenue Bonds Henry Ford Hospital Series A 7.50 2013 400,000 433,076
State Hospital Finance Authority Revenue Bonds Henry Ford Hospital
Series 1990A 7.00 2010 1,000,000 1,035,220
State Hospital Finance Authority Revenue Bonds Henry Ford Hospital
Series 1992A 5.75 2017 1,500,000 1,352,850
State Hospital Finance Authority Pre-Refunded Revenue Bonds
Oakwood Hospital Group Series 1990A (FGIC Insured) 7.10 2018 1,000,000 1,113,780
State Job Development Authority Pollution Control Revenue Bonds
Chrysler Project 5.70 1999 1,000,000 997,180
State Public Power Agency Belle River Pre-Refunded Bonds Series 1983 6.625 2019 675,000 697,639
State Public Power Agency Belle River Pre-Refunded Revenue Bonds Series 1986 7.00 2018 1,510,000 1,584,443
State Strategic Fund Limited Tax Obligation Refunding Revenue Bonds
Detroit Edison Series 1990BB (MBIA Insured) 7.00 2008 1,000,000 1,089,960
State Strategic Fund Limited Tax Obligation Refunding Revenue Bonds
Detroit Edison Series 1992BB (FGIC Insured) 6.50 2016 2,500,000 2,540,525
State Strategic Fund Limited Tax Obligation Refunding Revenue Bonds
Ford Motor Series 1991A 7.10 2006 1,650,000 1,786,950
State Strategic Fund Limited Tax Obligation Refunding Revenue Bonds
Escrowed to Maturity Oxford Institute 7.875 2005 150,000 173,898
State Trunk Line Series A (FGIC Insured) 5.75 2020 2,730,000 2,518,097
State University Board of Trustees General Revenue Bonds Series 1992A 6.25 2015 3,000,000 2,975,370
State University Hospital Pre-Refunded Revenue Bonds Series 1986A 7.75 2012 150,000 163,633
State University Revenue Parking System Pre-Refunded Bonds
Ann Arbor Campus Series A 7.40 2015 150,000 161,005
Taylor Tax Increment Finance Authority Bonds Series 1989A (MBIA Insured) 6.00 2007-09 1,205,000 1,220,455
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE 52
Investments in securities
IDS Michigan Tax-Exempt Fund (Percentages represent value of
June 30, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal Bonds (continued)
_____________________________________________________________________________________________________________________________
Name of issuer and Coupon Maturity Principal Value(a)
title of issue (b,c,d) rate amount
_____________________________________________________________________________________________________________________________
Warren Consolidated School District Refunding Revenue Bonds
Unlimited Tax General Obligation Bonds (MBIA Insured) 5.50% 2021 $1,500,000 $ 1,343,640
Waterford School District Unlimited Tax General Obligation Bonds
Series Q 6.25 2013 340,000 337,372
Wayne County Airport Revenue Bonds AMT Detroit Metropolitan Airport
Series 1986 (FGIC Insured) 8.00 2014 250,000 273,472
Wayne County Airport Revenue Bonds AMT Detroit Metropolitan Airport
Series 1990A (AMBAC Insured) 7.00 2020 1,080,000 1,148,299
Wayne County Airport Revenue Bonds Detroit Metropolitan Airport Series 1993C
(MBIA Insured) 5.25 2021 1,500,000 1,279,980
Wyandotte Electric Pre-Refunded Revenue Bonds Series 1987 (AMBAC Insured) 7.875 2017 300,000 332,292
_____________________________________________________________________________________________________________________________
Total municipal bonds
(Cost: $71,583,775) $ 74,896,329
_____________________________________________________________________________________________________________________________
Short-term security (0.6%)
_____________________________________________________________________________________________________________________________
Issuer (e) Effective Amount Value(a)
yield payable
at
maturity
_____________________________________________________________________________________________________________________________
Municipal note
Regents of the University of Michigan Hospital
Refunding Revenue Bonds Series 1992A
12-01-19 2.65% $ 500,000 $ 500,000
_____________________________________________________________________________________________________________________________
Total short-term security
(Cost: $500,000) $ 500,000
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $72,083,775)(f) $ 75,396,329
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 53
Investments in securities
IDS Michigan Tax-Exempt Fund
June 30, 1994
___________________________________________________________________
Investments in securities (continued)
___________________________________________________________________
Notes to investments in securities
___________________________________________________________________
(a) Securities are valued by procedures described in Note 1 to the
financial statements.
(b) Investments in bonds, by rating category as a percentage of
total bonds, are as follows:
(Unaudited)
Rating 06-30-94 06-30-93
___________________________________________________________________
AAA 65% 36%
AA 25 40
A 6 19
BBB and below 4 3
Non-rated - 2
Total 100% 100%
___________________________________________________________________
(c) The following abbreviations are used in portfolio descriptions
to identify the insurer of the issue:
AMBAC -- American Municipal Bond Association Corporation
BIG -- Bond Investors Guarantee
FGIC -- Financial Guarantee Insurance Corporation
FSA -- Financial Security Assurance
MBIA -- Municipal Bond Investors Assurance
(d) The following abbreviation is used in portfolio descriptions:
AMT -- Alternative Minimum Tax
(e) Interest rate varies to reflect current market conditions; rate
shown is the effective rate on June 30, 1994.
(f) At June 30, 1994, the cost of securities for federal income tax
purposes was $72,060,816 and the aggregate gross unrealized
appreciation and depreciation based on that cost was:
Unrealized appreciation $ 4,576,063
Unrealized depreciation (1,240,550)
___________________________________________________________________
Net unrealized appreciation $ 3,335,513
___________________________________________________________________
<PAGE>
PAGE 54
<TABLE>
<CAPTION>
Investments in securities (Percentages represent
IDS Minnesota Tax-Exempt Fund value of investments
June 30, 1994 compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (96.4%)
_____________________________________________________________________________________________________________________________
Name of issuer and Coupon Maturity Principal Value(a)
title of issue (b,c,g) rate amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Anoka County General Obligation Capital Improvement Revenue Bonds
Series 1989B 7.00% 2007-10 $7,950,000 $ 8,546,807
Anoka County Resource Recovery Revenue Bonds Northern States Power
Series 1985 7.15 2008 3,750,000 3,970,800
Apple Valley Certificate of Participation Lease Pre-Refunded Bonds
Central Garage Facility Financial Agreement 7.25 2001 155,000 164,660
Apple Valley Certificate of Participation Lease Pre-Refunded Bonds
Central Garage Facility Financial Agreement 7.30 2002 175,000 186,064
Apple Valley Certificate of Participation Lease Pre-Refunded Bonds
Central Garage Facility Financial Agreement 7.40 2003 190,000 202,441
Apple Valley Certificate of Participation Lease Pre-Refunded Bonds
Central Garage Facility Financial Agreement 7.50 2004 450,000 480,384
Appleton Correctional Facility Revenue Bonds Series 1990A 9.875 2020 4,000,000 (d) 2,520,000
Bass Brook Pollution Control Revenue Bonds Minnesota Power & Light
Series 1992 6.00 2022 6,300,000 5,942,412
Becker Pollution Control Revenue Bonds Northern States Power
Series 1987A 6.80 2007 4,025,000 4,180,727
Becker Pollution Control Revenue Bonds Northern States Power
Sherburne County Generating Station Units 1 & 2 Series 1987A 7.25 2005 2,000,000 2,072,200
Bemidji Hospital Facilities 1st Mortgage Revenue Bonds
North Country Health Services Series 1991 7.00 2021 1,755,000 1,819,566
Bloomington Community Development Refunding Revenue Bonds
Note 24th Avenue Motel 8.50 2005 1,858,796 1,905,266
Braham Independent School District #314 Refunding Bonds 5.20 2019 3,340,000 2,947,917
Brainerd Hospital Refunding Revenue Bonds Evangelical Lutheran
Good Samaritan Society Series 1992A (Capital Guaranty Insured) 6.65 2017 1,695,000 1,765,919
Brainerd Hospital Revenue Bonds Evangelical Lutheran
Good Samaritan Society Series 1992B (Capital Guaranty Insured) 6.65 2017 2,865,000 2,984,872
Burnsville Multi-family Housing Refunding Revenue Bonds
FHA-Summit Park Apartments Series 1993 6.00 2033 4,000,000 3,675,560
Chaska Advance Refunded Certificate of Participation
Lease Purchase Agreement Bonds Series 1986C 7.25 2001 800,000 850,784
Columbia Heights Multi-family Housing Revenue Bonds
Crestview Lutheran Home Royce Place Series 1991 10.00 2032 560,000 607,830
Columbia Heights Multi-family Housing Revenue Bonds
Crestview Lutheran Home Royce Place Series 1991 (FHA Insured) 7.75 2032 2,755,000 2,852,802
Duluth Economic Development Authority Health Care Facility
Pre-Refunded Revenue Bonds Benedictine Health System
St. Mary's Medical Center Series 1990 8.375 2020 2,000,000 2,336,040
Duluth Hospital Facilities St. Lukes Hospital
Pre-Refunded Revenue Bonds Series 1988 9.00 2018 2,500,000 2,882,400
Duluth Housing and Redevelopment Authority 1st Mortgage Revenue Bonds
Lakeshore Lutheran Home 8.25 2009 125,000 122,686
Duluth Recreation Revenue Certificate of Participation 9.00 2003-07 1,430,000 1,572,905
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 55
<TABLE>
<CAPTION>
Investments in securities (Percentages represent
IDS Minnesota Tax-Exempt Fund value of investments
June 30, 1994 compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (continued)
_____________________________________________________________________________________________________________________________
Name of issuer and Coupon Maturity Principal Value(a)
title of issue (b,c,g) rate amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Eden Prairie Housing Development Refunding Revenue Bonds Eden Commons
Series 1990 (FHA Insured) 8.25% 2025 $6,420,000 $ 6,313,235
Edina Hospital System Revenue Bonds Fairview Hospital & Health Care Services
Series 1989A 7.125 2019 2,500,000 2,585,350
Edina Multi-family Housing Revenue Bonds Walker Assisted Living
Series 1991 9.00 2031 6,700,000 7,249,936
Faribault Single Family Mortgage Refunding Revenue Bonds Series 1991A 7.50 2011 3,550,000 3,634,348
Hennepin County Lease Revenue Certificate of Participation Series 1991 6.80 2017 7,250,000 7,657,088
Hennepin County Solid Waste Resource Recovery General Obligation
Revenue Bonds Series 1987A 8.20 2009 1,760,000 1,873,344
Hermantown Independent School District #700 General Obligation
School Building Pre-Refunded Bonds Series 1986A (MBIA Insured) 8.10 2006 290,000 311,895
Hubbard County Solid Waste Disposal Revenue Bonds AMT Potlatch Series 1989 7.375 2013 5,610,000 5,960,401
International Falls Solid Waste Disposal Revenue Bonds AMT Boise Cascade
Series 1990 7.75 2015 4,000,000 4,194,080
Maplewood Care Institute Series 1994 7.75 2024 3,830,000 3,651,637
Maplewood Multi-family Housing Revenue Bonds Maplewood (FHA Insured) 7.75 2021 2,135,000 2,139,206
Minneapolis & St. Paul Housing Board Multi-family Mortgage Revenue Bonds AMT
GNMA Collateral Mortgage Revenue Loan Riverside Plaza Series 1988 8.25 2030 3,945,000 4,186,316
Minneapolis Community Development Agency & St. Paul Housing
& Redevelopment Authority Home Ownership Mortgage Revenue Bonds
Family Housing Mortgage Phase II 7.875 2017 1,515,000 1,579,887
Minneapolis Convention Center Sales Tax Pre-Refunded Revenue Bonds
Series 1986 (AMBAC Insured) 7.625 2004 1,750,000 1,880,778
Minneapolis Convention Center Sales Tax Pre-Refunded Revenue Bonds
Series 1986 (AMBAC Insured) 7.75 1996 700,000 753,774
Minneapolis General Obligation Sales Tax Refunding Bonds Series 1992 6.25 2012 13,000,000 13,567,190
Minneapolis Health Care Facilities Revenue Bonds Fairview Hospital &
Healthcare Services Series 1993A (MBIA Insured) 5.25 2019 3,750,000 3,288,450
Minneapolis Hospital Facility Pre-Refunded Revenue Bonds Lifespan
Incorporated
Series 1987A 8.125 2017 3,630,000 4,007,012
Minneapolis Hospital Facility Pre-Refunded Revenue Bonds Lifespan
Incorporated
Series 1989A 7.00 2014 5,000,000 5,528,250
Minneapolis Housing & Redevelopment Authority of St. Paul
Health Care System Revenue Bonds Healthspan Series 1993 (AMBAC Insured) 4.75 2018 3,000,000 2,386,620
Minneapolis Nursing Home Revenue Bonds Walker Cityview & Southview Projects
Series 1992 8.50 2022 5,565,000 5,720,931
Minneapolis St. Paul Housing & Redevelopment Authority Health Care System
Revenue Bonds Healthspan Series 1993A (AMBAC Insured) 5.00 2007-13 6,690,000 5,991,651
Minneapolis Water & Sewer Revenue Bonds Series 1992 5.00 1995 5,000,000 5,057,050
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE 56
Investments in securities (Percentages represent
IDS Minnesota Tax-Exempt Fund value of investments
June 30, 1994 compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (continued)
_____________________________________________________________________________________________________________________________
Name of issuer and Coupon Maturity Principal Value(a)
title of issue (b,c,g) rate amount
_____________________________________________________________________________________________________________________________
Minnetonka Multi-family Housing Refunding Revenue Bonds Cedar Hill West
(FHA Insured) 7.75% 2026 $5,625,000 $ 5,520,150
Minnetonka Multi-family Housing Revenue Bonds The Cedar Hills Series 1985 7.50 2017 500,000 513,065
Montevideo Independent School District #129 General Obligation
Unlimited Tax Bonds School Credit Enhancement Program 4.90 2014 1,875,000 1,581,844
Northern Municipal Power Agency Electric Refunding Revenue Bonds
Series A (AMBAC Insured) 6.00 2019 2,250,000 2,174,422
Northern Municipal Power Agency Electric System Refunding Revenue Bonds
Series 1989A 7.25 2016 5,475,000 5,909,824
Northern Municipal Power Agency Electric System Pre-Refunded Revenue Bonds
Series 1989A (AMBAC Insured) 7.40 2018 1,000,000 1,107,480
Northern Municipal Power Agency Electric System Pre-Refunded Revenue Bonds
Series 1989B (AMBAC Insured) 7.40 2018 1,800,000 1,964,448
Norwood-Young America Independent School District #108 General Obligation
School Building Bonds Unlimited Tax School Credit
Enhancement Program Series 1994A 5.00 2014 1,345,000 1,159,229
Osseo Area Schools Independent School District #279
General Obligation School Building Bonds Series 1993A Inverse Floater 7.30 2012 5,000,000 (e) 4,250,000
Owatanna Public Utilities Pre-Refunded Revenue Bonds Series 1991 6.75 2016 1,000,000 1,075,470
Plymouth Multi-family Housing Revenue Bonds AMT Harbor Lane Apartments
Project
Series 1993 (Asset Guaranty Insured) 5.90 2013 2,325,000 2,142,069
Port Authority St. Paul General Obligation Bonds Series 1994 5.125 2017 2,885,000 2,544,916
Red Wing Industrial Development Refunding Revenue Bonds K mart Series 1993 5.50 2008 400,000 363,580
Richfield Independent School District #280 Unlimited Tax General Obligation
School Building Bonds Series 1993C Inverse Floater (FGIC Insured) 7.15 2010 3,300,000 (e) 2,833,875
Richfield Independent School District #280 Unlimited Tax General Obligation
School Building Bonds Series 1993C Inverse Floater (FGIC Insured) 7.25 2012 2,510,000 (e) 2,081,694
Robbinsdale Hospital Pre-Refunded Revenue Bonds
North Memorial Medical Center Series 1989 (AMBAC Insured) 7.375 2019 2,200,000 2,439,800
Rochester Health Care Facility Revenue Bonds Mayo Foundation/Mayo Medical
Center Series 1992I 5.75 2021 3,000,000 2,752,920
Rochester Multi-family Housing Development Revenue Bonds Civic Square
Series 1991 (FHA Insured) 7.45 2031 4,475,000 4,569,736
Roseville Health Care Facility Refunding Revenue Bonds
Presbyterian Homes of Minnesota Series 1987 7.50 2007 2,250,000 2,339,910
Rush City Independent School District #139 Unlimited Tax School Building
Refunding Bonds School Credit Enhancement Program 5.25 2018 2,595,000 2,297,250
St. Cloud Hospital Facilities Revenue Bonds St. Cloud Hospital Series 1990B
(AMBAC Insured) 7.00 2020 5,000,000 5,561,350
St. Cloud Hospital Refunding Revenue Bonds Series 1993C (AMBAC Insured) 5.25 2013 1,000,000 897,070
St. Cloud Hydro Electric Generation Facility Gross Revenue Bonds 7.375 2018 1,100,000 1,165,296
Series 1986
St. Louis Park Health Care Facilities Revenue Bonds
Healthsystem Minnesota Obligated Group Series 1993 (AMBAC Insured) 5.20 2023 4,500,000 3,817,935
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE 57
Investments in securities (Percentages represent
IDS Minnesota Tax-Exempt Fund value of investments
June 30, 1994 compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (continued)
_____________________________________________________________________________________________________________________________
Name of issuer and Coupon Maturity Principal Value(a)
title of issue (b,c,g) rate amount
_____________________________________________________________________________________________________________________________
St. Louis Park Health Care Facilities Revenue Bonds
Healthsystem Minnesota Obligated Group Series 1993A (AMBAC Insured) 5.20% 2016 $ 3,000,000 $ 2,629,350
St. Louis Park Health Care Facilities Revenue Bonds
Healthsystem Minnesota Obligated Group Series 1993B Inverse Floater
(AMBAC Insured) 6.773 2013 7,000,000 (e) 5,232,500
St. Louis Park Health Care Facilities Pre-Refunded Revenue Bonds
Park Nicollet Medical Center Series 1990A 9.25 2020 4,000,000 4,822,680
St. Louis Park Health Care Facilities Pre-Refunded Revenue Bonds
Park Nicollet Medical Center Series 1991A 8.625 2021 2,000,000 2,358,160
St. Louis Park Multi-family Rental Housing Revenue Bonds
Mortgage Loan-Community Housing & Services Series 1985 (FHA Insured) 7.375 2028 2,250,000 2,343,555
St. Paul & Minneapolis Housing & Redevelopment Authority Health Care
Facility Revenue Bonds Group Health Plan Series 1992 6.75 2013 10,500,000 (f) 10,624,320
St. Paul Housing & Redevelopment Authority Hospital Facility Revenue Bonds
St. Paul Ramsey Medical Center (AMBAC Insured) 5.55 2023 2,000,000 1,821,140
St. Paul Housing & Development Bonds Highland Retirement (FHA Insured) 7.013 2026 5,210,000 (d) 4,793,200
St. Paul Housing & Redevelopment Authority Commercial Development
Refunding Revenue Bonds Beverly Enterprises Series 1992 7.75 2002 2,900,000 3,053,265
St. Paul Housing & Redevelopment Authority Health Care Facility
Revenue Bonds
Lyngblomsten Care Center Series 1993A 7.125 2017 1,960,000 1,889,714
St. Paul Housing & Redevelopment Authority Health Care Facility
Revenue Bonds
Lyngblomsten Care Center Series 1993A 9.60 2006 1,110,000 1,108,912
St. Paul Housing & Redevelopment Authority Health Care Facility
Revenue Bonds
Multi-family Rental Housing Revenue Bonds Lynblomsten Project 1993B 7.00 2024 1,930,000 1,786,794
St. Paul Housing & Redevelopment Authority Sales Tax Revenue Bonds
Civic Center Series 1993 5.55 2023 5,000,000 4,506,900
St. Paul Sewer Refunding Revenue Bonds Series 1993 (AMBAC Insured) 5.60 2008 7,700,000 7,484,477
Southern Minnesota Municipal Power Agency Power Supply System
Revenue Bonds Series 1992B 5.75 2018 1,100,000 1,023,770
Southern Minnesota Municipal Power Agency Pre-Refunded Bonds Series 1988A 8.125 2018 1,315,000 1,471,722
Southern Minnesota Municipal Power Agency Pre-Refunded Bonds Series 1988B 8.125 2018 1,000,000 1,119,180
Southern Minnesota Municipal Power Agency Power Supply System
Pre-Refunded Revenue Bonds Series 1986A 6.75 2013 1,000,000 1,055,090
Southern Minnesota Municipal Power Agency Power Supply System
Pre-Refunded Revenue Bonds Series 1986B 7.00 2016 2,500,000 2,646,725
Southern Minnesota Municipal Power Agency Power Supply System
Pre-Refunded Revenue Bonds Series 1984B 7.00 2018 3,475,000 3,707,269
Southern Minnesota Municipal Power Agency Power Supply System
Pre-Refunded Revenue Bonds Series 1986C 7.125 2015 8,000,000 8,484,000
Spring Park Health Care Facility Revenue Bonds Twin Birch Health
Care Center
Series 1991 8.25 2011 1,780,000 1,920,175
State General Obligation Various Purpose Pre-Refunded Bonds Series 1990 7.00 2009 7,850,000 8,604,306
State General Obligation Various Purpose Pre-Refunded Bonds Series 1991 6.70 2011 9,065,000 9,828,273
State Higher Education Facility Authority Mortgage
Pre-Refunded Revenue Bonds St. Mary's College Series 2M 8.375 2017 1,000,000 1,140,060
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE 58
Investments in securities (Percentages represent
IDS Minnesota Tax-Exempt Fund value of investments
June 30, 1994 compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (continued)
_____________________________________________________________________________________________________________________________
Name of issuer and Coupon Maturity Principal Value(a)
title of issue (b,c,g) rate amount
_____________________________________________________________________________________________________________________________
State Housing Facility Authority Housing Development Bonds Series A 7.125% 2020 $ 845,000 $ 862,120
State Housing Facility Authority Housing Development Bonds Series 1976A 7.25 2018 205,000 209,799
State Housing Facility Authority Housing Development Bonds Series 1978B 7.10 2021 470,000 479,142
State Housing Facility Authority Housing Development Bonds Series 1979A 7.00 2022 700,000 714,595
State Housing Facility Authority Housing Finance Agency Housing Development
Single Family Mortgage Bonds Series B 7.25 2016 480,000 495,912
State Housing Finance Agency Single Family Mortgage Bonds Series AMT 1989A 8.00 2029 1,860,000 1,915,819
State Housing Finance Agency Single Family Mortgage Bonds Series AMT 1990A 7.95 2022 3,915,000 3,988,954
State Housing Finance Agency Single Family Mortgage Bonds Series AMT 1991A 7.45 2022 3,595,000 3,722,874
State Housing Finance Agency Single Family Mortgage Bonds Series 1992A 6.95 2016 3,330,000 3,390,107
State Public Facilities Authority Water Pollution Control Revenue Bonds
Series 1989A 7.00 2009 6,250,000 6,647,937
State Public Facilities Authority Water Pollution Control Revenue Bonds
Series 1992A 6.50 2014 9,050,000 9,574,538
State University Board of Regents General Obligation Bonds
Series 1993A Inverse Floater 6.427 2003 5,000,000 (e) 4,400,000
State University Board of Regents General Obligation Pre-Refunded Bonds
Series 1986A 7.75 2010 1,675,000 1,794,427
State University Board of Regents General Obligation Pre-Refunded Bonds
Series 1989A 6.00 2011 4,625,000 4,572,090
State University Board State University System Pre-Refunded Revenue Bonds
Series 1989A (MBIA Insured) 7.40 2019 4,000,000 4,412,640
Washington County General Obligation Capital Improvement Bonds
Series 1989A 7.00 2009-10 4,425,000 4,775,858
Washington County Housing & Redevelopment Authority Multi-family Housing
Revenue Bonds AMT Orleans Homes Series 1987-2 9.00 2017 2,000,000 2,155,480
Western Minnesota Municipal Power Agency Revenue Bonds
Escrowed to Maturity (AMBAC Insured) 6.75 2016 5,935,000 6,124,445
Western Minnesota Municipal Power Agency Supply Refunding Revenue Bonds
Series 1987A 5.50 2015 5,000,000 4,503,250
Western Minnesota Municipal Power Agency Supply Refunding Revenue Bonds
Series 1987A 6.875 2007 2,500,000 2,627,775
Western Minnesota Municipal Power Agency Supply Refunding Revenue Bonds
Series 1987A 7.00 2013 7,300,000 7,694,273
Western Minnesota Municipal Power Agency Supply Refunding Revenue Bonds
Series A (Secondary MBIA Insured) 5.50 2015 6,250,000 5,719,062
White Bear Lake Industrial Development Revenue Bonds AMT Taylor 8.75 2008 2,250,000 2,443,207
Series 1988A
_____________________________________________________________________________________________________________________________
Total municipal bonds
(Cost: $385,791,640) $393,852,645
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE 59
Investments in securities (Percentages represent
IDS Minnesota Tax-Exempt Fund value of investments
June 30, 1994 compared to net assets)
_____________________________________________________________________________________________________________________________
Short-term securities (1.7%)
_____________________________________________________________________________________________________________________________
Issuer(g) Annualized Amount Value(a)
yield on payable at
date of maturity
purchase
_____________________________________________________________________________________________________________________________
Municipal notes
Regents of University of Minnesota Series I
07-01-94 2.30% $1,000,000 $ 1,000,000
Richfield Independent School District #280 S.A.V.R.
(FGIC Insured)
08-01-94 3.16% 5,810,000 5,810,000
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $6,810,000) $ 6,810,000
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $392,601,640)(h) $400,662,645
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 60
Investments in securities
IDS Minnesota Tax-Exempt Fund
June 30, 1994
___________________________________________________________________
Notes to investments in securities
___________________________________________________________________
(a) Securities are valued by procedures described in Note 1 to the
financial statements.
(b) Investments in bonds, by rating category as a percentage of
total bonds, are as follows:
(Unaudited)
Rating 06-30-94 06-30-93
___________________________________________________________________
AAA 43% 22%
AA 24 28
A 20 31
BBB and below 13 3
Non-rated -- 16
Total 100% 100%
___________________________________________________________________
(c) The following abbreviations are used in portfolio descriptions
to identify the insurer of the issue:
AMBAC -- American Municipal Bond Association Corporation
FGIC -- Financial Guarantee Insurance Corporation
FHA -- Federal Housing Authority
MBIA -- Municipal Bond Investors Assurance
(d) Presently non-income producing. Item identified is in default
as to payment of interest and/or principal.
(e) Inverse floaters represent securities which pay interest at a
rate that increases (decreases) based on (decreases) increases
of market short-term rates. Interest rate disclosed is the rate
in effect on June 30, 1994.
(f) Partially pledged as initial deposit on the following open
interest rate futures purchase contracts (see Note 5 to the
financial statements):
Type of security Par value
_____________________________________________________
U.S. Treasury Bond, Sept. 1994 $27,500,000
_____________________________________________________
(g) The following abbreviations are used in portfolio descriptions:
AMT -- Alternative Minimum Tax
S.A.V.R. -- Select Auction Variable Rate
(h) At June 30, 1994, the cost of securities for federal income tax
purposes was $392,505,556 and the aggregate gross unrealized
appreciation and depreciation based on that cost was:
Unrealized appreciation $19,346,065
Unrealized depreciation (11,188,976)
___________________________________________________________________
Net unrealized appreciation $ 8,157,089
___________________________________________________________________<PAGE>
PAGE 61
<TABLE>
<CAPTION>
Investments in securities
IDS New York Tax-Exempt Fund (Percentages represent value of
June 30, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (96.9%)
_____________________________________________________________________________________________________________________________
Name of issuer and Coupon Maturity Principal Value(a)
title of issue (b,c,h) rate amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Battery Park City Authority Senior Refunding Revenue Bonds Series 1993A 5.25% 2017 $4,000,000 $ 3,456,920
Broome County Certificates of Partication Public Safety Facility
Series 1994 (MBIA Insured) 5.25 2022 1,250,000 1,064,338
Buffalo Municipal Water Finance Authority Water System Revenue Bonds
(FSA Insured) 5.75 2019 700,000 643,615
Erie County Water Authority Fourth Resolution Water Refunding Revenue Bonds
Zero Coupon Series 1992 (AMBAC Insured) 7.30 2017 1,215,000 (d) 225,613
Erie County Water Authority Water Works System Revenue Bonds
Escrowed to Maturity Series 1990A (AMBAC Insured) 6.00 2008 1,765,000 1,781,856
Fallsburg Sullivan County Unlimited Tax General Obligation Improvement
Pre-Refunded Bonds Series 1991 7.05 2011-14 1,300,000 1,450,566
Great Neck North Water Authority Water System Pre-Refunded Revenue Bonds
Series 1989A 6.00 2020 1,415,000 1,471,996
Metropolitan Transportation Authority Commuter Facilities
1987 Service Contract Refunding Bonds Series 5 6.50 2016 1,775,000 1,754,534
Metropolitan Transportation Authority Service Transit Facilities
Pre-Refunded Revenue Bonds Series G 8.50 2011 1,000,000 1,096,210
Metropolitan Transportation Authority Transit Facilities Bonds Series 5 6.00 2018 1,500,000 1,388,085
Metropolitan Transportation Authority Transit Facilities
Pre-Refunded Revenue Bonds Series F 8.375 2016 725,000 793,027
Monroe County Utility General Obligation Pre-Refunded Bonds
Water Improvement System 7.10 2008-14 2,190,000 2,406,328
Municipal Assistance New York City Series 57 7.25 2008 500,000 532,310
Municipal Assistance New York City Series 59 7.75 2006 660,000 722,561
Municipal Assistance New York City Series 62 6.75 2006 2,200,000 2,347,224
New York & New Jersey Port Authority Consolidated Revenue Bonds
AMT Series 61 8.125 2023 750,000 790,965
New York & New Jersey Port Authority Consolidated Revenue Bonds
AMT Series 62 8.00 2023 1,000,000 1,061,640
New York & New Jersey Port Authority Consolidated Revenue Bonds AMT
Series 84 6.00 2028 2,500,000 2,339,725
New York City General Obligation Unlimited Tax Bonds Series E
(Capital Guaranty Insured) 6.00 2016 1,500,000 (e) 1,438,230
New York City Municipal Water Finance Authority Water & Sewer System Revenue
Bonds Series B Inverse Floater (MBIA Insured) 7.35 2009 2,000,000 (f) 1,705,000
New York City Water Finance Authority Water & Sewer System
Pre-Refunded Revenue Bonds Series A (FGIC Insured) 6.75 2014 1,185,000 1,288,996
New York City Water Finance Authority Water & Sewer System Revenue
Bonds Series A (FGIC Insured) 6.75 2014 565,000 584,571
New York City Water Finance Authority Water & Sewer System Revenue
Pre-Refunded Bonds Series 1988A 7.00 2018 2,500,000 2,686,825
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE 62
Investments in securities
IDS New York Tax-Exempt Fund (Percentages represent value of
June 30, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (continued)
_____________________________________________________________________________________________________________________________
Name of issuer and Coupon Maturity Principal Value(a)
title of issue (b,c,h) rate amount
_____________________________________________________________________________________________________________________________
New York City Water Finance Authority Water & Sewer System Revenue Bonds
Series 1993A (AMBAC Insured) 5.75% 2018 $4,000,000 $ 3,706,400
State Certificate of Participation City University John J. College 7.25 2007 360,000 379,375
State Dormitory Authority City University System Pre-Refunded Revenue Bonds 8.125 2017 3,400,000 3,781,990
State Dormitory Authority City University System Pre-Refunded Revenue Bonds
Series 1986A 7.625 2013 1,000,000 1,079,900
State Dormitory Authority City University System Revenue Bonds
Series 1993A 5.75 2013 3,000,000 2,753,430
State Dormitory Authority State University Education Facility
Refunding Revenue Bonds Series 1990B 7.50 2011 1,900,000 2,098,968
State Dormitory Authority State University Education Facility
Pre-Refunded Revenue Bonds Series 1990A 7.70 2012 1,750,000 2,000,513
State Dormitory Authority Upstate Community Colleges Series A
(Connie Lee Insured) 5.625 2012 1,500,000 1,390,350
State Energy Research & Development Authority Electric Facility
Revenue Bonds AMT Consolidated Edison Series 1986A 7.50 2021 1,750,000 1,847,878
State Energy Research & Development Authority Electric Facility
Revenue Bonds AMT Consolidated Edison Series 1989A 7.75 2024 1,000,000 1,070,330
State Energy Research & Development Authority Electric Facility
Revenue Bonds AMT Consolidated Edison Series 1990A 7.50 2025 5,000,000 5,314,900
State Energy Research & Development Authority Gas Facility Revenue Bonds
Brooklyn Union Gas Series I 7.125 2020 2,000,000 2,114,620
State Energy Research & Development Authority Gas Facility Revenue Bonds
Brooklyn Union Gas Series II 7.00 2020 1,500,000 1,581,765
State Environmental Facility State Water & Pollution Control
Revolving Fund Revenue Bonds New York City Municipal Water
Finance Authority Series 1990A 7.50 2012 3,000,000 3,291,600
State Housing Finance Authority State University Construction Program
Pre-Refunded Bonds Series 1986A 8.00 2016 400,000 432,148
State Housing Finance Authority State University Construction Program
Pre-Refunded Bonds Series A 8.30 2018 500,000 563,535
State Local Government Assistance Pre-Refunded Bonds Series 1991A 7.00 2016 4,000,000 4,461,840
State Local Government Assistance Bonds Series 1992A 6.875 2019 2,000,000 2,103,380
State Medical Care Facility Finance Agency Hospital & Nursing Home
Mortgage Revenue Bonds Montefiore Hospital Series 1989A (FHA Insured) 7.25 2024 1,400,000 1,487,990
State Medical Care Facility Finance Agency Mental Health Services Facility
Improving Refunding Revenue Bonds Series 1993F 5.375 2014 1,000,000 867,180
State Medical Care Facility Finance Agency Mental Health Services Facility
Improving Refunding Revenue Bonds Series 1994A 5.25 2023 1,500,000 1,232,700
State Medical Care Facility Finance Agency Pre-Refunded Bonds
Presbyterian Hospital Series 1985B 8.00 2025 1,320,000 1,465,094
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE 63
Investments in securities
IDS New York Tax-Exempt Fund (Percentages represent value of
June 30, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (continued)
_____________________________________________________________________________________________________________________________
Name of issuer and Coupon Maturity Principal Value(a)
title of issue (b,c,h) rate amount
_____________________________________________________________________________________________________________________________
State Medical Care Facility Finance Agency Revenue Bonds
Buffalo General Hospital Series 1988C (FHA Insured) 7.60% 2008 $1,500,000 $ 1,680,120
State Medical Care Facility Finance Agency Revenue Bonds
Buffalo General Hospital Series 1988C (FHA Insured) 7.70 2022 1,950,000 2,187,471
State Medical Care Facility Finance Agency Revenue Bonds
North Shore University Glen Cove Series A (MBIA Insured) 5.125 2012 1,000,000 874,190
State Medical Care Facility Finance Agency Secured Hospital Revenue Bonds
Series 1987A 7.10 2027 550,000 571,148
State Mortgage Agency Homeowner Mortgage Revenue Bonds Series TT 7.50 2015 4,000,000 4,205,960
State Mortgage Agency Homeowner Mortgage Revenue Bonds Series 27 6.90 2015 3,000,000 3,046,320
State Mortgage Agency Revenue Bonds AMT Series 9 7.30 2017 1,000,000 1,019,880
State Power Authority General Purpose Pre-Refunded Revenue Bonds Series T 7.375 2018 1,000,000 1,063,120
State Thruway Authority Local Highway & Bridge Service Contract Bonds
Series 1991 6.00 2011 2,500,000 2,374,575
State Urban Development Correction Facility Pre-Refunded Bonds Series B 8.00 2015 1,000,000 1,073,260
State Urban Development Correction Facility
Pre-Refunded Revenue Bonds Series 1986 8.00 2015 750,000 804,945
State Urban Development Correction Facility Pre-Refunded Revenue Bonds
Series 1 (FSA Insured) 7.50 2020 4,500,000 5,080,950
State Urban Development Correctional Capital Facilities
Refunding Revenue Bonds Series 1993A 5.25 2021 2,500,000 2,066,600
Suffolk County General Obligation Public Improvement Refunding Bonds
Series G (MBIA Insured) 5.40 2014 1,000,000 902,120
Triborough Bridge & Tunnel Authority General Purpose
Pre-Refunded Revenue Bonds Series S 7.00 2021 3,000,000 3,327,030
Triborough Bridge & Tunnel Authority Special Obligation Refunding Bonds
Series 1991B (FGIC Insured) 6.875 2015 2,000,000 2,098,240
United Nations Development Pre-Refunded Revenue Bonds
Phase II & III 7.875 2026 1,460,000 1,574,333
United Nations Development Senior Lien Pre-Refunded Revenue Bonds
1986 Phase II & III 7.875 2006 250,000 269,577
United Nations Development Senior Lien Refunding Revenue Bonds
Series 1992A 6.00 2026 4,500,000 4,221,405
_____________________________________________________________________________________________________________________________
Total municipal bonds
(Cost: $111,051,032) $116,498,265
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE 64
Investments in securities
IDS New York Tax-Exempt Fund (Percentages represent value of
June 30, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Short-term securities (1.1%)
_____________________________________________________________________________________________________________________________
Issuer (g) Effective Amount Value(a)
yield payable at
maturity
_____________________________________________________________________________________________________________________________
Municipal notes
New York City General Obligation Bonds Series H-5
08-12-12 3.50% $ 500,000 $ 500,000
New York City General Obligation Bonds Subseries 1994A-4
08-01-22 2.90 600,000 600,000
New York City Municipal Water Finance Authority
Water & Sewer System Series 1992C
06-15-22 2.75 200,000 200,000
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $1,300,000) $ 1,300,000
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $112,351,032)(i) $117,798,265
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 65
Investments in securities
IDS New York Tax-Exempt Fund
June 30, 1994
___________________________________________________________________
Notes to investments in securities
___________________________________________________________________
(a) Securities are valued by procedures described in Note 1 to the
financial statements.
(b) Investments in bonds, by rating category as a percentage of
total bonds, are as follows:
(Unaudited)
Rating 06-30-94 06-30-93
___________________________________________________________________
AAA 46% 26%
AA 30 43
A 11 15
BBB and below 13 16
Non-rated -- --
Total 100% 100%
___________________________________________________________________
(c) The following abbreviations are used in portfolio descriptions
to identify the insurer of the issue:
AMBAC - American Municipal Bond Association Corporation
FGIC - Financial Guarantee Insurance Corporation
FHA - Federal Housing Authority
FSA - Financial Security Assurance
MBIA - Municipal Bond Investors Assurance
(d) For zero coupon bonds, the interest rate disclosed represents
the annualized effective yield on the date of acquisition.
(e) Partially pledged as initial deposit on the following open
interest rate futures purchase contracts (see Note 5 to the
financial statements):
Type of security Par value
___________________________________________________________________
U.S. Treasury Bonds, Sept. 94 $9,000,000
___________________________________________________________________
(f) Inverse floaters represent securities which pay interest at a
rate that increases (decreases) based on (decreases) increases
of market short-term rates. Interest rate disclosed is the rate
in effect on June 30, 1994.
(g) Interest rate varies to reflect current market conditions; rate
shown is the effective rate on June 30, 1994.
(h) The following abbreviation is used in portfolio descriptions:
AMT - Alternative Minimum Tax
(i) At June 30, 1994, the cost of securities for federal income tax
purposes was $112,324,643 and the aggregate gross unrealized
appreciation and depreciation based on that cost was:
Unrealized appreciation $7,810,635
Unrealized depreciation (2,337,013)
___________________________________________________________________
Net unrealized appreciation $5,473,622
___________________________________________________________________<PAGE>
PAGE 66
<TABLE>
<CAPTION>
Investments in securities
IDS Ohio Tax-Exempt Fund (Percentages represent value of
June 30, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (98.2%)
_____________________________________________________________________________________________________________________________
Name of issuer and Coupon Maturity Principal Value(a)
title of issue (b,c) rate amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Akron Bath & Copley Joint Township Hospital Refunding Revenue Bonds
Childrens Hospital Medical Center (AMBAC Insured) 5.00% 2015 $1,000,000 $ 854,640
Akron Bath & Copley Joint Township Hospital Refunding Revenue Bonds
Childrens Hospital Medical Center Series 1993 (AMBAC Insured) 5.25 2020 1,500,000 1,300,290
Barberton Limited Tax Various Purpose General Obligation Bonds
Series 1989-1 7.35 2009 700,000 727,020
Bedford School District Unlimited Tax Improvement General Obligation
Various Purpose Bonds Series 1993 6.25 2013 700,000 688,373
Bedford Sewer System Mortgage Revenue Bonds Series 1986 (AMBAC Insured) 7.80 2010 300,000 327,597
Bellefontaine Hospital Facility Refunding Revenue Bonds
Mary Rutan Health Association of Logan County Series 1993 6.00 2013 1,000,000 892,680
Benjamin Logan Local School District Refunding Revenue Bonds
Childrens Hospital Medical Center (AMBAC Insured) 5.20 2010 550,000 502,271
Butler County Hospital Facility Improvement Refunding Revenue Bonds 7.50 2010 1,750,000 1,709,347
Cincinnati Student Loan Funding Corporation Junior Sub Bonds AMT
Series 1993B 6.20 2012 1,000,000 961,100
Cincinnati Student Loan Funding Corporation Senior Sub Bonds Series 1993A 6.15 2010 500,000 481,210
Clermont County Hospital Facility Refunding Revenue Bonds
Mercy Health Systems Series B (AMBAC Insured) 5.875 2015 1,250,000 1,193,837
Clermont County Hospital Facility Revenue Bonds Mercy Health System
Province of Cincinnati Series 1989A (AMBAC Insured) 7.50 2019 750,000 831,165
Cleveland Airport Systems Revenue Bonds AMT Series 1990A (MBIA Insured) 7.40 2020 500,000 547,750
Cleveland General Obligation Pre-Refunded Bonds 7.375 2003 125,000 136,746
Cleveland Public Power System 1st Mortgage Pre-Refunded Revenue Bonds 8.375 2017 100,000 111,740
Cleveland Waterworks Improvement 1st Mortgage Pre-Refunded Revenue Bonds
Series F 1992A (AMBAC Insured) 6.50 2021 1,590,000 1,722,145
Cleveland Waterworks Improvement 1st Mortgage Refunding Revenue Bonds
Series F 1992B (AMBAC Insured) 6.25 2016 1,000,000 999,980
Cleveland Waterworks Improvement 1st Mortgage Revenue Bonds Series 1987E 6.00 2017 200,000 189,614
Cleveland Waterworks Improvement 1st Mortgage Pre-Refunded Revenue Bonds
Series 1987E 7.875 2016 650,000 709,280
Columbus Sewer Pre-Refunded Revenue Bonds Series A 8.00 2008 100,000 108,391
Columbus Water System Refunding Revenue Bonds Series 1991 6.375 2010 1,000,000 1,009,320
Coshocton County Solid Waste Disposal Refunding Revenue Bonds
Stone Container Series 1992 7.875 2013 1,000,000 1,000,980
Cuyahoga County Hospital Improvement Revenue Bonds
Cleveland Clinic Foundation 7.00 2013 500,000 522,105
Cuyahoga County Hospital Improvement Pre-Refunded Revenue Bonds
Cleveland Clinic Foundation Series 1987A 7.875 2010 275,000 304,931
Cuyahoga County Hospital Improvement Revenue Bonds
Mount Sinai Medical Center Series 1991 (AMBAC Insured) 6.625 2021 600,000 615,288
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE 67
Investments in securities
IDS Ohio Tax-Exempt Fund Percentages represent value of
June 30, 1994 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (continued)
_____________________________________________________________________________________________________________________________
Name of issuer and Coupon Maturity Principal Value(a)
title of issue (b,c) rate amount
_____________________________________________________________________________________________________________________________
Cuyahoga County Hospital Improvement Revenue Bonds
University Hospitals Health System Series 1992 (AMBAC Insured) 6.50% 2011 $ 500,000 $ 514,645
Cuyahoga County Hospital Refunding Revenue Bonds
Cleveland Clinic Foundation Series 1992 5.50 2011 1,500,000 1,399,695
Cuyahoga County Hospital Refunding Revenue Bonds
Mount Sinai Medical Center Series 1987A 8.125 2014 400,000 439,992
Cuyahoga County Hospital Revenue Bonds Cleveland Fairview
General & Lutheran Medical Center Series 1993 6.25 2010 500,000 494,455
Cuyahoga County Hospital Revenue Bonds Meridia Health Series 1991 7.00 2023 1,000,000 1,035,290
Cuyahoga County Limited Tax General Obligation Bonds 5.60 2013 500,000 471,620
Cuyahoga Hospital Revenue Bonds Metrohealth System Series 1989
(MBIA Insured) 6.00 2019 1,000,000 971,130
Dover Limited Tax Improvement General Obligation
Municipal Sewer System Bonds 7.10 2009 1,000,000 1,077,700
Dublin Local School District Unlimited Tax Improvement
School Building Construction Pre-Refunded Bonds (FGIC Insured) 7.50 2003 100,000 110,048
Elyria Limited Tax Improvement General Obligation
Recreation Facility Bonds 7.10 2009 715,000 765,379
Erie County Hospital Improvement Refunding Revenue Bonds
Firelands Community Hospital Series 1992 6.75 2015 2,000,000 2,030,780
Fairfield Union Local School District School Facilities
Unlimited Tax Improvement General Obligation Bonds (AMBAC Insured) 5.90 2018 625,000 601,525
Findlay Limited Tax General Obligation Sewage System Pre-Refunded Bonds
Series 1989 7.20 2011 500,000 555,180
Franklin County Convention Facilities Authority Tax & Lease
Revenue Anticipation Bond (MBIA Insured) 5.80 2013 1,000,000 960,570
Franklin County Convention Facilities Authority Tax & Lease
Revenue Anticipation Pre-Refunded Bonds (MBIA Insured) 7.00 2019 1,500,000 1,672,485
Franklin County Limited Tax General Obligation Refunding Bonds Series 1993 5.50 2013 1,000,000 929,510
Highland Heights Limited Tax Improvement General Obligation Street Bonds 7.75 2008 400,000 447,168
Kettering School District Improvement General Obligation Bonds
(FGIC Insured) 5.25 2022 1,000,000 872,530
Lake County Water System Limited Tax Improvement General Obligation
Pre-Refunded Bonds Series 1987-2 8.125 2010 700,000 783,503
Lakota Local School District Butler County School Unlimited Tax
Improvement Bonds 7.00 2012 500,000 545,200
Lakota Local School District Butler County School Unlimited Tax Improvement
Pre-Refunded Bonds 7.90 2011 200,000 222,648
Lima Limited Tax Improvement General Obligation Sanitary Sewer System
Pre-Refunded Bonds 8.25 2012 200,000 224,640
Lucas County Hospital Refunding Revenue Bonds St. Vincent's Medical Center
Series B (MBIA Insured) 5.25 2020 2,000,000 1,734,700
Lucas County Hospital Pre-Refunded Revenue Bonds Toledo Hospital
(MBIA Insured) 7.00 2014 100,000 106,587
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 68
<TABLE>
<CAPTION>
Investments in securities
IDS Ohio Tax-Exempt Fund
June 30, 1994 (Percentages represent value of
investments compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (continued)
_____________________________________________________________________________________________________________________________
Name of issuer and Coupon Maturity Principal Value(a)
title of issue (b,c) rate amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Marietta Sewer System Improvement Bonds (BIG Insured) 7.50% 2007 $ 200,000 $ 221,496
Marion County Health Care Facilities Improvement Refunding Revenue
Bonds United Church Homes Series 1993 6.375 2010 1,000,000 956,410
Marysville Sewer System 1st Mortgage Revenue Bonds AMT Series 1988
(BIG Insured) 7.85 2008 400,000 444,604
Marysville Water System Mortgage Revenue Bonds Series 1991 (MBIA Insured) 7.05 2021 1,000,000 1,077,830
Mason Waterworks System Refunding Revenue Bonds Series 1993
(AMBAC Insured) 6.00 2017 600,000 585,234
Massillon School District School Unlimited Tax Improvement
General Obligation Bonds Series 1989-1 (AMBAC Insured) 7.10 2011 300,000 333,552
Medina County Hospital Revenue Bonds Medina County Community Hospital
Series 1987 (AMBAC Insured) 6.875 2016 100,000 106,662
Miami County Hospital Facility Refunding Revenue Bonds
Upper Valley Medical Center Series 1987A 8.375 2013 75,000 82,701
Miami State University General Receipts Bonds Series 1993 (FGIC Insured) 5.60 2013 500,000 468,505
Montgomery County Health Facilities Revenue Bonds Friendship Village Dayton
Series 1990A 9.25 2016 1,000,000 1,054,270
Montgomery County Industrial Development Revenue Bonds AMT SPM System
Series 1991 10.00 2005 720,000 (d) 360,000
Montgomery County Sewer System Refunding Revenue Bonds
Greater Moraine - Beavercreek District Series 1993 (FGIC Insured) 5.60 2011 1,000,000 943,090
Newark Water System Limited Tax Improvement General Obligation Bonds
(AMBAC Insured) 6.00 2018 500,000 488,085
Parma Hospital Improvement Revenue Bonds Parma Community General Hospital
Series 1989B (MBIA Insured) 7.125 2013 500,000 541,490
Pickerington Local School District Unlimited Tax General Obligation
Pre-Refunded Bonds (AMBAC Insured) 7.00 2013 1,000,000 1,114,990
Pleasant Local School District Unlimited Tax Improvement
General Obligation Bonds Series 1993 (AMBAC Insured) 5.10 2018 780,000 669,224
Rocky River City School District Unlimited Tax Improvement
General Obligation Bonds Series 1991A 6.90 2011 2,220,000 2,344,409
Rural Loraine County Water Authority Water Resource Improvement
Pre-Refunded Revenue Bonds Series 1991 (AMBAC Insured) 7.00 2011 1,000,000 1,107,360
South Euclid Lyndhurst School District General Obligation Bonds
(FGIC Insured) 5.25 2018 1,000,000 876,670
Southwest Local School District Hamilton & Butler Counties School
Unlimited Tax Improvement Bonds (AMBAC Insured) 7.65 2010 500,000 572,640
Stark County Hospital Pre-Refunded Revenue Bonds
Timkin Mercy Medical Center 7.50 2007 125,000 135,503
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 69
<TABLE>
<CAPTION>
Investments in securities
IDS Ohio Tax-Exempt Fund
June 30, 1994 (Percentages represent value of
investments compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (continued)
_____________________________________________________________________________________________________________________________
Name of issuer and Coupon Maturity Principal Value(a)
title of issue (b,c) rate amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
State Air Quality Development Authority Revenue Bonds
Cleveland Electric Illuminating Series A 7.00% 2009 $ 350,000 $ 350,431
State Building Authority Local Jail Grant Bonds Series 1989A
(MBIA Insured) 7.35 2009 500,000 560,265
State Building Authority State Correctional Facility Refunding Revenue Bonds
Series 1993A 5.90 2007 1,000,000 991,730
State Building Authority State Correctional Facility Refunding Revenue Bonds
Series 1993A 6.00 2008 500,000 509,065
State Building Authority State Correctional Facility Revenue Bonds Series B 7.125 2009 75,000 79,022
State Building Authority State Facility Pre-Refunded Bonds
Columbus State Office Building Series 1985C 7.35 2005 1,000,000 1,126,940
State Building Authority State Facility Pre-Refunded Bonds
Department of Administrative Services Data Center Series 1988A 7.80 2007 300,000 331,626
State Higher Educational Facility Pre-Refunded Revenue Bonds
Oberlin College Series 1989 7.375 2014 500,000 560,195
State Higher Educational Facility Revenue Bonds University of Dayton
Series 1994 (FGIC Insured) 5.80 2019 900,000 848,700
State Housing Finance Agency Mortgage Revenue Bonds AMT
Aristocrat South Board & Care Series 1991A (FHA Insured) 7.30 2031 1,500,000 1,525,515
State Housing Finance Agency Single Family Mortgage Revenue Bonds AMT
Series 1990A (GNMA Insured) 7.80 2030 745,000 772,200
State Housing Finance Agency Single Family Mortgage Revenue Bonds AMT
Series 1990C (GNMA Insured) 7.85 2021 990,000 1,025,977
State Municipal Electric Generation Agency Joint Venture #5 Revenue Bonds
(AMBAC Insured) 5.375 2024 1,250,000 1,098,600
State Water Development Authority Improvement Refunding Revenue Bonds
Pure Water Series (AMBAC Insured) 6.00 2008 1,500,000 1,517,265
State Water Development Authority Pollution Control Revenue Bonds
Phillip Morris 7.25 2008 150,000 161,028
State Water Development Authority Water Development Pre-Refunded Bonds
Pure Water Series 1987I 7.75 2006-14 200,000 219,190
State Water Development Authority Water Development Pre-Refunded Bonds
Pure Water Series 1988I 7.00 2014 500,000 535,165
Summit County Industrial Development Revenue Bonds Century Products 7.75 2005 100,000 107,639
Summit County Limited Tax General Obligation Pre-Refunded Bonds
Human Services Facility (AMBAC Insured) 8.00 2007 100,000 111,541
Sycamore Board of Education Community School District
Hamilton County School Improvement Bonds 6.50 2009 500,000 508,150
University of Cincinnati General Receipt Bonds Series 1991G 7.00 2011 1,000,000 1,068,220
University of Cincinnati General Receipt Pre-Refunded Bonds Series H 7.50 2008 250,000 276,100
University of Cincinnati General Receipt Pre-Refunded Bonds Series I-1 7.10 2010 750,000 828,270
University of Toledo General Receipt Bonds Series A (FGIC Insured) 5.90 2020 1,000,000 955,290
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
<PAGE>
PAGE 70
Investments in securities
IDS Ohio Tax-Exempt Fund
June 30, 1994 (Percentages represent value of
investments compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (continued)
_____________________________________________________________________________________________________________________________
Name of issuer and Coupon Maturity Principal Value(a)
title of issue (b,c) rate amount
_____________________________________________________________________________________________________________________________
University of Toledo General Receipt Bonds Series B (FGIC Insured) 5.90% 2020 $ 1,000,000 $ 955,290
University of Toledo General Receipt Pre-Refunded Bonds Series 1990
(MBIA Insured) 7.125 2020 500,000 556,935
Warren County Various Purpose Limited Tax General Obligation Bonds
Series 1992 6.10 2012 500,000 499,960
Whitehall City School District Franklin County Unlimited Tax
Improvement General Obligation School Building Construction
Pre-Refunded Bonds 7.25 2013 500,000 558,935
_____________________________________________________________________________________________________________________________
Total municipal bonds
(Cost: $68,841,082) 70,260,000 $ 70,538,749
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $68,841,082)(e) 70,260,000 $ 70,538,749
_____________________________________________________________________________________________________________________________
See accompanying notes to investments in securities.
</TABLE>
<PAGE>
PAGE 71
Investments in securities
IDS Ohio Tax-Exempt Fund
June 30, 1994
___________________________________________________________________
Notes to investments in securities
___________________________________________________________________
(a) Securities are valued by procedures described in Note 1 to the
financial statements.
(b) Investments in bonds, by rating category as a percentage of
total bonds, are as follows:
(Unaudited)
Rating 06-30-94 06-30-93
___________________________________________________________________
AAA 65% 43%
AA 11 22
A 14 23
BBB and below 10 6
Non-rated -- 6
Total 100% 100%
___________________________________________________________________
(c) The following abbreviations are used in portfolio descriptions
to identify the insurer of the issue:
AMBAC -- American Municipal Bond Association Corporation
BIG -- Bond Investors Guarantee
FGIC -- Financial Guarantee Insurance Corporation
FHA -- Federal Housing Authority
GNMA -- Government National Mortgage Association
MBIA -- Municipal Bond Investors Assurance
(d) Presently non-income producing. For long-term debt securities
item identified is in default as to payment of interest and/or
principal.
(e) At June 30, 1994, the cost of securities for federal income tax
purposes was $68,810,402 and the aggregate gross unrealized
appreciation and depreciation based on that cost was:
Unrealized appreciation $3,370,429
Unrealized depreciation (1,642,082)
___________________________________________________________________
Net unrealized appreciation $1,728,347
___________________________________________________________________
<PAGE>
PAGE 72
IDS mutual funds
Cash equivalent investments
These money market funds have three main goals: conversation of
capital, constant liquidity and the highest possible current income
consistent with these objectives. Very limited risk.
IDS Cash Management Fund
Invests in such money market securities as high quality commercial
paper, bankers' acceptances, certificates of deposits (CDs) and
other bank securities.
(icon of) piggy bank
IDS Tax-Free Money Fund
Invests primarily in short-term bonds and notes issued by state and
local governments to seek high current income exempt from federal
income taxes.
(icon of) shield with piggy bank enclosed
Income investments
The funds in this group invest their assets primarily in corporate
bonds or government securities to seek interest income. Secondary
objective is capital growth. Risk varies by bond quality.
IDS Global Bond Fund
Invests primarily in debt securities of U.S. and foreign issuers to
achieve high total return through income and growth of capital.
(icon of) globe
IDS Extra Income Fund
Invests mainly in long-term, high-yielding corporate fixed-income
securities in the lower rated, higher risk bond categories to
provide high current income. Secondary objective is capital
growth.
(icon of) cornucopia
IDS Bond Fund
Invests mainly in corporate bonds, at least 50% in the higher
rated, lower risk bond categories,or the equivalent, and in
government bonds.
(icon of) greek column
<PAGE>
PAGE 73
IDS Strategy, Income Fund
Invests primarily in corporate and government bonds to seek high
current income while conserving capital. Also may seek capital
appreciation when consistent with its primary goals.
(icon of) chess piece
IDS Selective Fund
Invests in high quality corporate bonds and other highly-rated debt
instruments including government securities and short-term
investments. Seeks current income and preservation of capital.
(icon of) skyline
IDS Federal Income Fund
Invests primarily in securities issued or guaranteed as to
principal and interest by the U.S. government, its agencies and
instrumentalities. Seeks a high level of current income and safety
of principal consistent with its type of investments.
(icon of) federal building
IDS Strategy, Short-Term Income Fund
Invests primarily in short-term and intermediate-term bonds and
notes to seek a high level of current income.
(icon of) chess piece
Tax-exempt income investments
These funds provide tax-free income by investing in municipal
bonds. The income is generally free from federal income tax. Risk
varies by bond quality.
IDS High Yield Tax-Exempt Fund
Invests primarily in medium- and lower-quality municipal bonds and
notes.
(icon of) shield with basket of apples enclosed
IDS State Tax-Exempt Funds
(CA, MA, MI, MN, NY, OH)
Invests primarily in high- and medium-grade municipal securities to
provide income to residents of each respective state that is exempt
from federal, state and local income taxes. (New York is the only
state that is exempt at the local level.)
(icon of) shield with U.S. enclosed
<PAGE>
PAGE 74
IDS Tax-Exempt Bond Fund
Invests mainly in bonds and notes of state or local government
units, with at least 75 percent in the four highest rated, lowest
risk bond categories.
(icon of) shield with Greek column
IDS Insured Tax-Exempt Fund
Invests primarily in municipal securities that are insured as to
the timely payment of principal and interest. The insurance
feature minimizes credit risk of the Fund but does not guarantee
the market value of the Fund's shares.
(icon of) shield with eagle head
Growth and income investments
These funds focus on securities of medium to large, well-
established companies that offer long-term growth of capital and
reasonable income from dividends and interest. Moderate risk.
IDS International Fund
Invests primarily in common stocks of foreign companies that offer
potential for superior growth. The Fund may invest up to 20
percent of its assets in the U.S. market.
(icon of) three flags
IDS Strategy, Worldwide Growth Fund
Invests primarily in common stocks of companies throughout the
world that offer potential for superior growth. Holding may range
from small- to large-capitalization stocks, including those of
companies involve in areas of rapid economic growth.
(icon of) chess piece
IDS Managed Retirement Fund
Invests in a combination of common stocks, fixed income investments
and money market securities to seek a maximum total return through
a combination of growth of capital and current income.
(icon of) bird in a nest
IDS Equity Plus Fund
Invests primarily in a combination of moderate growth stocks,
higher-yielding equities and bonds. Seeks growth of capital and
income.
(icon of) three apple trees
<PAGE>
PAGE 75
IDS Blue Chip Advantage Fund
Invests in selected stocks from a major market index. Securities
purchased are those recommended by IDS research analysts as the
best from each industry represented on the index. Offers potential
for long-term growth as well as dividend income.
(icon of) ribbon
IDS Stock Fund
Invests primarily in common stocks of blue chip U.S. companies
representing almost every major sector of the economy. Seeks
current income and growth of capital.
(icon of) building with columns
IDS Strategy, Equity Fund
Invests primarily in undervalued common stocks that offer potential
for growth of capital and income.
(icon of) chess piece
IDS Utilities Income Fund
Invests primarily in the stocks of public utility companies to
provide high current income and growth of income and capital with
reduced volatility.
(icon of) electrical cord
IDS Diversified Equity Income Fund
Invests primarily in high-yielding common stocks to provide high
current income and, secondarily to benefit from the growth
potential offered by stock investments.
(icon of) four puzzle pieces
IDS Mutual
Invests in a balance between common stocks and senior securities
(preferred stocks and bonds). Seeks a balance of growth of capital
and current income.
(icon of) scale of justice
Growth investments
Funds in this group seek capital growth, primarily from common
stocks. They are high risk mutual funds with a potential for high
reward.
<PAGE>
PAGE 76
IDS Discovery Fund
Invests in small and medium-sized, growth-oriented companies
emphasizing technological innovation and productivity enhancement.
Buys and holds larger growth-oriented stocks.
(icon of) ship
IDS Strategy, Aggressive Equity Fund
Invests primarily in common stocks of companies that are selected
for their potential for above-average growth. Above-average means
that their growth potential is better, in the opinion of the
Portfolio's investment manager, than the Standard & Poor's
Corporation (S&P) 500 Stock Index.
(icon of) chess piece
IDS Growth Fund
Invests primarily in companies that have above-average potential
for long-term growth as a result of new management, marketing
opportunities or technological superiority.
(icon of) flower
IDS Global Growth Fund
Invests in stocks of companies throughout the world that are
positioned to meet market needs in a changing world economy. These
companies offer above-average potential for long-term growth.
(icon of) world
IDS New Dimensions Fund
Invests primarily in domestic companies with significant growth
potential due to superiority in technology, marketing or
management. The Fund frequently changes its industry mix.
(icon of) dimension
IDS Progressive Fund
Invests primarily in undervalued common stocks. The Fund holds
stocks for the long-term with the goal of capital growth.
(icon of) shooting star
Specialty growth investment
This fund aggressively seeks capital growth as a hedge against
inflation.
<PAGE>
PAGE 77
IDS Precious Metals Fund
Invests primarily in the securities of foreign or domestic
companies that explore for, mine and process or distribute gold and
other precious metals. This is the most aggressive and most
speculative IDS mutual fund.
(icon of) cart of precious gems
For more complete information about any of these funds, including
charges and expenses, you can obtain a prospectus by contacting
your financial planner or writing to IDS Shareholder Service, P.O.
Box 534, Minneapolis, MN 55440-0534. Read it carefully before you
invest or send money.
<PAGE>
PAGE 78
Federal income tax information
IDS California Tax-Exempt Fund
___________________________________________________________________
The fund is required by the Internal Revenue Code of 1986 to tell
its shareholders about the tax treatment of the dividends it pays
during its fiscal year. Some of the dividends listed below were
reported to you on your year-end statement, last January.
Dividends paid to you since the end of last year will be reported
to you on a statement sent next January.
IDS California Tax-Exempt Fund
Fiscal year ended June 30, 1994
Exempt-interest dividends--taxable status explained below.
Payable date Per share
July 23, 1993 $0.0239
Aug. 23, 1993 0.0254
Sept. 23, 1993 0.0260
Oct. 22, 1993 0.0238
Nov. 23, 1993 0.0267
Dec. 28, 1993 0.0287
Jan. 26, 1994 0.0239
Feb. 24, 1994 0.0262
March 25, 1994 0.0243
April 25, 1994 0.0263
May 25, 1994 0.0247
June 27, 1994 0.0280
Total distributions $0.3079
Source of distributions
100% of exempt-interest distributions during the fiscal year ended
June 30, 1994 was derived from interest on California municipal
securities.
Federal taxation
Exempt-interest dividends are exempt from federal income taxes and
should not be included in shareholders' gross income.
Other taxation
Exempt-interest dividends may be subject to state and local taxes.
Each shareholder should consult a tax adviser about reporting this
income for state and local tax purposes.
<PAGE>
PAGE 79
Federal income tax information
IDS Massachusetts Tax-Exempt Fund
___________________________________________________________________
The fund is required by the Internal Revenue Code of 1986 to tell
its shareholders about the tax treatment of the dividends it pays
during its fiscal year. Some of the dividends listed below were
reported to you on your year-end statement, last January.
Dividends paid to you since the end of last year will be reported
to you on a statement sent next January.
IDS Massachusetts Tax-Exempt Fund
Fiscal year ended June 30, 1994
Exempt-interest dividends--taxable status explained below.
Payable date Per share
July 23, 1993 $0.0227
Aug. 23, 1993 0.0246
Sept. 23, 1993 0.0251
Oct. 22, 1993 0.0233
Nov. 23, 1993 0.0252
Dec. 28, 1993 0.0280
Jan. 26, 1994 0.0231
Feb. 24, 1994 0.0255
March 25, 1994 0.0234
April 25, 1994 0.0255
May 25, 1994 0.0243
June 27, 1994 0.0271
Total distributions $0.2978
Source of distributions
100% of exempt interest distributions during the fiscal year ended
June 30, 1994 was derived from interest on Massachusetts municipal
securities.
Federal taxation
Exempt-interest dividends are exempt from federal income taxes and
should not be included in shareholders' gross income.
Other taxation
Exempt-interest dividends may be subject to state and local taxes.
Each shareholder should consult a tax adviser about reporting this
income for state and local tax purposes.
<PAGE>
PAGE 80
Federal income tax information
IDS Michigan Tax-Exempt Fund
___________________________________________________________________
The fund is required by the Internal Revenue Code of 1986 to tell
its shareholders about the tax treatment of the dividends it pays
during its fiscal year. Some of the dividends listed below were
reported to you on your year-end statement, last January.
Dividends paid to you since the end of last year will be reported
to you on a statement sent next January.
IDS Michigan Tax-Exempt Fund
Fiscal year ended June 30, 1994
Exempt-interest dividends -- taxable status explained below.
Payable date Per share
July 23, 1993 $0.0232
Aug. 23, 1993 0.0252
Sept. 23, 1993 0.0259
Oct. 22, 1993 0.0237
Nov. 23, 1993 0.0267
Dec. 28, 1993 0.0287
Jan. 26, 1994 0.0236
Feb. 24, 1994 0.0258
March 25, 1994 0.0239
April 25, 1994 0.0262
May 25, 1994 0.0248
June 27, 1994 0.0282
Total $0.3059
Taxable dividend -- short-term capital gain taxable as dividend
income.
Payable date Per share
Dec. 28, 1993 $0.0022
Capital gain distribution -- taxable as long-term capital gain.
Payable date Per share
Dec. 28, 1993 $0.0028
Total distributions $0.3109
Source of distributions
100% of exempt-interest distributions during the fiscal year ended
June 30, 1994 was derived from interest on Michigan municipal
securities.
<PAGE>
PAGE 81
Federal income tax information
IDS Michigan Tax-Exempt Fund
___________________________________________________________________
Federal taxation
Exempt-interest dividends are exempt from federal income taxes and
should not be included in shareholders' gross income.
Other taxation
Exempt-interest dividends may be subject to state and local taxes.
Each shareholder should consult a tax adviser about reporting this
income for state and local tax purposes.
<PAGE>
PAGE 82
Federal income tax information
IDS Minnesota Tax-Exempt Fund
___________________________________________________________________
The fund is required by the Internal Revenue Code of 1986 to tell
its shareholders about the tax treatment of the dividends it pays
during its fiscal year. Some of the dividends listed below were
reported to you on your year-end statement, last January.
Dividends paid to you since the end of last year will be reported
to you on a statement sent next January.
IDS Minnesota Tax-Exempt Fund
Fiscal year ended June 30, 1994
Exempt-interest dividends--taxable status explained below.
Payable date Per share
July 23, 1993 $0.0235
Aug. 23, 1993 0.0257
Sept. 23, 1993 0.0265
Oct. 22, 1993 0.0245
Nov. 23, 1993 0.0273
Dec. 28, 1993 0.0292
Jan. 26, 1994 0.0240
Feb. 24, 1994 0.0265
March 25, 1994 0.0246
April 25, 1994 0.0267
May 25, 1994 0.0251
June 27, 1994 0.0282
Total distributions $0.3118
Source of distributions
100% of exempt-interest distributions during the fiscal year ended
June 30, 1994 was derived from interest on Minnesota municipal
securities.
Federal taxation
Exempt-interest dividends are exempt from federal income taxes and
should not be included in shareholders' gross income.
Other taxation
Exempt-interest dividends may be subject to state and local taxes.
Each shareholder should consult a tax adviser about reporting this
income for state and local tax purposes.
<PAGE>
PAGE 83
Federal income tax information
IDS New York Tax-Exempt Fund
___________________________________________________________________
The fund is required by the Internal Revenue Code of 1986 to tell
its shareholders about the tax treatment of the dividends it pays
during its fiscal year. Some of the dividends listed below were
reported to you on your year-end statement, last January.
Dividends paid to you since the end of last year will be reported
to you on a statement sent next January.
IDS New York Tax-Exempt Fund
Fiscal year ended June 30, 1994
Exempt-interest dividends -- taxable status explained below.
Payable date Per share
July 23, 1993 $0.0234
Aug. 23, 1993 0.0248
Sept. 23, 1993 0.0256
Oct. 22, 1993 0.0235
Nov. 23, 1993 0.0264
Dec. 28, 1993 0.0284
Jan. 26, 1994 0.0236
Feb. 24, 1994 0.0261
March 25, 1994 0.0241
April 25, 1994 0.0260
May 25, 1994 0.0244
June 27, 1994 0.0274
Total distributions $0.3037
Source of distributions
100% of exempt-interest distributions during the fiscal year ended
June 30, 1994 was derived from interest on New York municipal
securities.
Federal taxation
Exempt-interest dividends are exempt from federal income taxes and
should not be included in shareholders' gross income.
Other taxation
Exempt-interest dividends may be subject to state and local taxes.
Each shareholder should consult a tax adviser about reporting this
income for state and local tax purposes.
<PAGE>
PAGE 84
Federal income tax information
IDS Ohio Tax-Exempt Fund
___________________________________________________________________
The fund is required by the Internal Revenue Code of 1986 to tell
its shareholders about the tax treatment of the dividends it pays
during its fiscal year. Some of the dividends listed below were
reported to you on your year-end statement, last January. Dividends
paid to you since the end of last year will be reported to you on a
statement sent next January.
IDS Ohio Tax-Exempt Fund
Fiscal year ended June 30, 1994
Exempt-interest dividends - taxable status explained below.
Payable date Per share
July 23, 1993 $0.0230
Aug. 23, 1993 0.0248
Sept. 23, 1993 0.0256
Oct. 22, 1993 0.0236
Nov. 23, 1993 0.0266
Dec. 28, 1993 0.0283
Jan. 26, 1994 0.0232
Feb. 24, 1994 0.0256
March 25, 1994 0.0234
April 25, 1994 0.0264
May 25, 1994 0.0243
June 27, 1994 0.0274
Total $0.3022
Capital gain distribution - taxable as long-term capital gain.
Payable date Per share
Dec. 28, 1993 $0.0001
Total distributions $0.3023
Source of distributions
100% of exempt interest distributions during the fiscal year ended
June 30, 1994 was derived from interest on Ohio municipal
securities.
Federal taxation
Exempt-interest dividends are exempt from federal income taxes and
should not be included in shareholders' gross income.
Other taxation
Exempt-interest dividends may be subject to state and local taxes.
Each shareholder should consult a tax adviser about reporting this
income for state and local tax purposes.
<PAGE>
PAGE 85
Quick telephone reference
IDS Telephone Transaction Service
Redemptions and exchanges, dividend payments or reinvestments and
automatic payment arrangements
National/Minnesota: 800-437-3133
Mpls./St. Paul area: 671-3800
IDS Shareholder Service
Fund performance, objectives and account inquiries
612-671-3733
TTY Service
For the hearing impaired
800-846-4852
IDS Infoline
Automated account information (TouchToneR phones only), including
current fund prices and performance, account values and recent
account transactions
National/Minnesota: 800-272-4445
Mpls./St. Paul area: 671-1630
Your IDS financial planner:
IDS State Tax-Exempt Funds
IDS Tower 10
Minneapolis, MN 55440-0010
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PAGE 86
STATEMENT OF DIFFERENCES
Difference Description
1) The layout is different 1) Some of the layout in the
throughout the annual report. annual report to
shareholders is in two
columns.
2) Headings. 2) The headings in the
annual report and
prospectus are placed
in blue strip at the top
of the page.
3) There are pictures, icons 3) Each picture, icon and
and graphs throughout the graph is described in
annual report and prospectus. parentheses.
4) Footnotes for charts and 4) The footnotes for each
graphs are described at chart or graph are typed
the left margin. below the description of
the chart or graph.
