<PAGE>
PAGE 1
IDS State Tax-Exempt Funds
1995 annual report
(prospectus enclosed)
(Icon of) United States enclosed in shield
Tax-exempt funds from the following states:
California
Massachusetts
Michigan
Minnesota
New York
Ohio
Distributed by
American Express
Financial Advisors<PAGE>
PAGE 2
(Icon of) United States enclosed in 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.<PAGE>
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 fund in detail.
1995 annual report
From the president 4
From the portfolio manager 5
Performance 6
California Tax-Exempt Fund
Ten largest holdings 8
Long-term performance 9
Massachusetts Tax-Exempt Fund
Ten largest holdings 10
Long-term performance 11
Michigan Tax-Exempt Fund
Ten largest holdings 12
Long-term performance 13
Minnesota Tax-Exempt Fund
Ten largest holdings 14
Long-term performance 15
New York Tax-Exempt Fund
Ten largest holdings 16
Long-term performance 17
Ohio Tax-Exempt Fund
Ten largest holdings 18
Long-term performance 19
All funds
Making the most of your fund 20
Independent auditors' report 23
Financial statements 24
Notes to financial statements 31
Investments in securities 40
IDS mutual funds 73
Federal income tax information 76
1995 prospectus
The funds in brief 3p
Sales charge and fund expenses 4p
Performance 8p
How to buy, exchange or sell shares 26p
Special shareholder services 38p
Distributions and taxes 39p
How the funds are organized 43p
About American Express Financial Corporation 47p
Appendices 48p<PAGE>
PAGE 4
To our shareholders
From the president
(Photo of) William R. Pearce
President of the fund
As I indicated in the funds' previous reports, new agreements
between each fund and American Express Financial Corporation were
approved by shareholders in November 1994. The new agreements
became effective when each fund began offering multiple classes of
shares on March 20, 1995.
The advantage of offering more than a single class of shares is
that investors may choose how they wish to pay sles charges. A
portion of these charges compensates your American Express
financial advisor (formerly called your IDS planner), who is
committed to providing you with outstanding services.
Adding new classes of mutual fund shares does make the presentation
of financial information in this report more complex. However, we
will continue our effort to make the reports easier to read and
understand. Meanwhile, your American Express financial advisor is
available to answer your questions.
William R. Pearce<PAGE>
PAGE 5
From the portfolio manager
It was the worst of times. It was the best of times.
That, in a nutshell, sums up the past fiscal year in the bond
market. After being driven down in value by a sustained rise in
interest rates last year, the bond market staged a dramatic
recovery in 1995. While municipal bonds lagged the breakneck page
of the broad market, they registered gains that put IDS State Tax-
Exempt Funds well into the plus column for the recent fiscal year--
July 1994 through Jue 1995. (Note: The fund's performance was
adversely affected by its investments in futures contracts.)
By some measures, 1994 saw one of the worst bond markets in several
decades. One of the hardest hit segments of the market was
municipal bonds, and this was evident by the decline in the funds'
net asset values during the second half of the year.
Rate rise sparks downturn
The severe market downturn of 1994 was prompted by the Federal
Reserve's policy of repeatedly raising short-term interest rates to
head off a potential spike in the inflation rate. Although
economic data continued to show that inflation was under control,
professional bond investors viewed the Fed's actions as an
indication that an increase in the rate of inflation was imminent.
And, because higher inflation erodes the value of fixed-income
investments such as bonds, professional investors quickly engaged
in mass bond-selling, driving down prices and driving up long-term
interest rates in the process.
By December, however, inflation fears were lessening, and by
January the bond market began a remarkable rally that included six
straight months of positive performance. Municipal bonds performed
especially well during the winter, as healthy demand and a
relatively low supply of bonds complemented the beneficial
interest-rate trend. The pace of municipals' advance slowed down
in the spring, though, as talk of tax reform in Washington tempered
investors' enthusiasm for tax-free bonds. While some modest tax
reform may well take place, the more extreme forms of a single-rate
flat tax or a pure consumption-based tax appear unlikely to become
law.
As for portfolio changes during the fiscal year, two are of note.
Last spring, we restructured the portfolio somewhat in anticipation
of a market decline. While the market did give ground a bit, the
dip was shallow and short-lived, and that ultimately penalized our
performance. The other change involved lengthening the average
duration of the portfolio, a strategy that makes it more sensitive
to interest-rate swings. Overall, that move was beneficial to fund
performance.
Outlook still good
While we think it's improbably that the bond market will be able to
match its spectacular run-up in the final half of fiscal 1995, we
believe the investment environment remains generally positive for
bonds. Though the current signs are mixed, it appears that
economic growth has slowed down. This should reduce the upward<PAGE>
PAGE 6
pressure on inflation and, therefore, on interest rates. (In fact,
just after the close of the fiscal year, the Federal reserve
lowered short-term interest rates for the first time in three
years.) What's more, municipal bonds continue to offer well-above-
average value, which should benefit prices.
Paul B. Hylle<PAGE>
PAGE 7
To our shareholders
California
Class A
12 month performance
(All figures per share)
Net asset value (NAV)
June 30, 1995 $ 5.16
June 30, 1994 $ 5.13
Increase $ 0.03
Distributions
July 1, 1994-June 30, 1995
From income $ 0.30
From capital gains $ --
Total distributions $ 0.30
Total return** +6.5%***
Class B
March 20, 1995-June 30, 1995
(All figures per share)
Net asset value (NAV)
June 30, 1995 $ 5.16
March 20, 1995* $ 5.21
Decrease $(0.05)
Distributions
March 20, 1995*-June 30, 1995
From income $ 0.09
From capital gains $ --
Total distributions $ 0.09
Total return** +0.8%***
Class Y
March 20, 1995-June 30, 1995
(All figures per share)
Net asset value (NAV)
June 30, 1995 $ 5.15
March 20, 1995* $ 5.22
Decrease $(0.07)
Distributions
March 20, 1995*-June 30, 1995
From income $ 0.08
From capital gains $ --
Total distributions $ 0.08
Total return** +0.2%***
<PAGE>
PAGE 8
Massachusetts
Class A
12 month performance
(All figures per share)
Net asset value (NAV)
June 30, 1995 $ 5.27
June 30, 1994 $ 5.24
Increase $ 0.03
Distributions
July 1, 1994-June 30, 1995
From income $ 0.30
From capital gains $ --
Total distributions $ 0.30
Total return** +6.5%***
Class B
March 20, 1995-June 30, 1995
(All figures per share)
Net asset value (NAV)
June 30, 1995 $ 5.27
March 20, 1995* $ 5.31
Decrease $(0.04)
Distributions
March 20, 1995*-June 30, 1995
From income $ 0.09
From capital gains $ --
Total distributions $ 0.09
Total return** +0.9%***
Class Y
March 20, 1995-June 30, 1995
(All figures per share)
Net asset value (NAV)
June 30, 1995 $ 5.28
March 20, 1995* $ 5.32
Decrease $(0.04)
Distributions
March 20, 1995*-June 30, 1995
From income $ 0.08
From capital gains $ --
Total distributions $ 0.08
Total return** +0.9%***
<PAGE>
PAGE 9
Michigan
Class A
12 month performance
(All figures per share)
Net asset value (NAV)
June 30, 1995 $ 5.39
June 30, 1994 $ 5.35
Increase $ 0.04
Distributions
July 1, 1994-June 30, 1995
From income $ 0.31
From capital gains $ --
Total distributions $ 0.31
Total return** +6.6%***
Class B
March 20, 1995-June 30, 1995
(All figures per share)
Net asset value (NAV)
June 30, 1995 $ 5.39
March 20, 1995* $ 5.43
Decrease $(0.04)
Distributions
March 20, 1995*-June 30, 1995
From income $ 0.09
From capital gains $ --
Total distributions $ 0.09
Total return** +0.9%***
Class Y
March 20, 1995-June 30, 1995
(All figures per share)
Net asset value (NAV)
June 30, 1995 $ 5.41
March 20, 1995* $ 5.45
Decrease $(0.04)
Distributions
March 20, 1995*-June 30, 1995
From income $ 0.09
From capital gains $ --
Total distributions $ 0.09
Total return** +0.9%***
<PAGE>
PAGE
Minnesota
Class A
12 month performance
(All figures per share)
Net asset value (NAV)
June 30, 1995 $ 5.19
June 30, 1994 $ 5.16
Increase $ 0.03
Distributions
July 1, 1994-June 30, 1995
From income $ 0.31
From capital gains $ --
Total distributions $ 0.31
Total return** +6.8%***
Class B
March 20, 1995-June 30, 1995
(All figures per share)
Net asset value (NAV)
June 30, 1995 $ 5.19
March 20, 1995* $ 5.24
Decrease $(0.05)
Distributions
March 20, 1995*-June 30, 1995
From income $ 0.09
From capital gains $ --
Total distributions $ 0.09
Total return** +0.8%***
Class Y
March 20, 1995-June 30, 1995
(All figures per share)
Net asset value (NAV)
June 30, 1995 $ 5.20
March 20, 1995* $ 5.25
Decrease $(0.05)
Distributions
March 20, 1995*-June 30, 1995
From income $ 0.09
From capital gains $ --
Total distributions $ 0.09
Total return** +0.8%***
<PAGE>
PAGE
New York
Class A
12 month performance
(All figures per share)
Net asset value (NAV)
June 30, 1995 $ 5.09
June 30, 1994 $ 5.12
Decrease $(0.03)
Distributions
July 1, 1994-June 30, 1995
From income $ 0.30
From capital gains $ --
Total distributions $ 0.30
Total return** +5.5%***
Class B
March 20, 1995-June 30, 1995
(All figures per share)
Net asset value (NAV)
June 30, 1995 $ 5.09
March 20, 1995* $ 5.17
Decrease $(0.08)
Distributions
March 20, 1995*-June 30, 1995
From income $ 0.09
From capital gains $ --
Total distributions $ 0.09
Total return** +0.2%***
Class Y
March 20, 1995-June 30, 1995
(All figures per share)
Net asset value (NAV)
June 30, 1995 $ 5.11
March 20, 1995* $ 5.17
Decrease $(0.06)
Distributions
March 20, 1995*-June 30, 1995
From income $ 0.08
From capital gains $ --
Total distributions $ 0.08
Total return** +0.4%***
<PAGE>
PAGE
Ohio
Class A
12 month performance
(All figures per share)
Net asset value (NAV)
June 30, 1995 $ 5.28
June 30, 1994 $ 5.26
Increase $ 0.02
Distributions
July 1, 1994-June 30, 1995
From income $ 0.30
From capital gains $ --
Total distributions $ 0.30
Total return** +6.2%***
Class B
March 20, 1995-June 30, 1995
(All figures per share)
Net asset value (NAV)
June 30, 1995 $ 5.28
March 20, 1995* $ 5.34
Decrease $(0.06)
Distributions
March 20, 1995*-June 30, 1995
From income $ 0.09
From capital gains $ --
Total distributions $ 0.09
Total return** +0.6%***
Class Y
March 20, 1995-June 30, 1995
(All figures per share)
Net asset value (NAV)
June 30, 1995 $ 5.28
March 20, 1995* $ 5.35
Decrease $(0.07)
Distributions
March 20, 1995*-June 30, 1995
From income $ 0.08
From capital gains $ --
Total distributions $ 0.08
Total return** +0.2%***
*Inception date.
**The prospectus discusses the effects of sales charge, if any, on
the various classes.
***The total return is a hypothetical investment in the fund with
all distributions reinvested.<PAGE>
PAGE 13
<TABLE>
<CAPTION>
IDS California Tax-Exempt Fund
Your fund's ten largest holdings
(Pie chart)
The ten holdings here make up 27.38% of the fund's net
assets
____________________________________________________________________________________
Percent Value
(of fund's net assets) (as of June 30, 1995)
____________________________________________________________________________________
<S> <C> <C>
Anaheim Public Finance Authority Bonds Revenue
2nd Series Electric Utilities San Juan
5.75% 2022 4.38% $10,571,418
Long Beach Harbor Revenue Bonds AMT Series 1989A
7.25% 2019 3.09 7,468,020
Sacramento Municipal Utility District Series R
6.00% 2015-2017 3.02 7,294,650
Los Angeles Department of Water & Power Electric Plant
Revenue Bonds Series 1990
7.125% 2030 3.30 7,237,555
Northern California Public Power Authority
Refunding Revenue Bonds Geothermal #3 Series 1987A
7.00% 2007 2.91 7,013,916
Statewide Community Development Authority Revenue
Certificate of Participation St. Joseph Health System Group
6.50% 2015 2.35 5,678,915
Los Angeles Convention & Exhibition Center
Pre-Refunded Certificate of Participation Series 1989A
7.00% 2020 2.30 5,547,850
San Diego Regional Transportation Commission Sales Tax
Pre-Refunded Revenue Bonds Limited Tax Series 1989A
6.25% 2008 2.22 5,348,198
University of Southern California Educational Facilities
Authority Pre-Refunded Revenue Bonds Series 1989A
6.75% 2015 2.17 5,245,550
Statewide Community Development Authority Health Facilities
Revenue Bonds Unihealth America Series 1993A Inverse Floater
7.063% 2011 1.94 4,687,500
Note: Certain of the fund's investment income may be subject to the Alternative
Minimum Tax.
</TABLE>
<PAGE>
PAGE 14
Your fund's long-term performance
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 gains distributions to buy additional shares
of the fund or another fund.
Class A*
How your $10,000 has grown in IDS California Tax-Exempt Fund
Average annual total return
(as of June 30, 1995)
Since
1 year 5 years inception
+1.19% +6.20% +6.17% $16,953
Lehman Total Return California
$10,000 Muni Index Tax-Exempt Fund
$ 9,500
9/1/86 '87 '88 '89 '90 '91 '92 '93 '94 '95
* The graph above is for Class A only. Class B and Class Y are not
shown. Total returns for Class A, Class B and Class Y for the
period from March 20, 1995 to June 30, 1995 were -4.2%, -4.2% and
+0.2% respectively. March 20, 1995 was the inception date for
Class B and Class Y. Total return for Class A is shown for
comparative purposes. The performance of Class B and Class Y will
vary from the performance of Class A based on differences in sales
charges and fees.
Assumes: Holding period from 9/1/86 to 6/30/95. Returns do not
reflect taxes payable on distributions. Also see "Performance" in
the fund's current prospectus. Reinvestment of all income and
capital gains distributions for the fund, with a value of $7,186.
The Lehman Total Return Muni Index is an unmanaged list of
municipal bonds used as a general measure of market performance.
On the graph 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 index. 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.
<PAGE>
PAGE 15
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than their 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 Massachusetts Tax-Exempt Fund
Your fund's ten largest holdings
(Pie chart)
The ten holdings listed here make up 27.44% of the fund's
net assets
_____________________________________________________________________________________
Percent Value
(of fund's net assets)(as of June 30, 1995)
_____________________________________________________________________________________
<S> <C> <C>
Boston City Hospital Refunding Revenue Bonds
Series B
5.75% 2023 3.97% $ 2,781,300
Health & Educational Facilities Authority
Revenue Bonds Suffolk University Series B
6.35% 2022 3.60 2,523,942
Health & Educational Facilities Authority
Revenue Bonds Cape Cod Health System Series A
5.25% 2021 3.16 2,215,375
Health & Educational Facilities Authority
Revenue Bonds Boston College Series J
6.625% 2021 3.00 2,104,460
Health & Educational Facilities Authority
Revenue Bonds Charlton Memorial Series 1991B
7.25% 2013 2.60 1,825,373
Industrial Finance Agency Resource Recovery
Revenue Bonds SEMASS Series 1991A
9.00% 2015 2.33 1,631,520
Municipal Wholesale Electric Power Supply System
Pre-Refunded Revenue Bonds Series 1992B
6.75% 2017 2.26 1,584,120
Bay Transportation Authority General Transportation
System Refunding Bonds Series 1992B
6.20% 2016 2.20 1,538,700
Municipal Wholesale Electric Power Supply System
Refunding Revenue Bonds Series B
4.75% 2011 2.19 1,536,798
Municipal Wholesale Electric Power Supply System
Revenue Bonds Special Pars & Inflows
5.31% 2018 2.13 1,494,768
</TABLE>
<PAGE>
PAGE 17
Your fund's long-term performance
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 gains distributions to buy additional shares
of the fund or another fund.
Class A*
How your $10,000 has grown in IDS Massachusetts Tax-Exempt Fund
Average annual total return
(as of June 30, 1995)
Since
1 year 5 years 7/02/87
+1.21% +6.57% +6.43% $16,535
Lehman Total Return California
$10,000 Muni Index Tax-Exempt Fund
$ 9,500
8/1/87 '88 '89 '90 '91 '92 '93 '94 '95
* The graph above is for Class A only. Class B and Class Y are not
shown. Total returns for Class A, Class B and Class Y for the
period from March 20, 1995 to June 30, 1995 were -4.0%, -4.1% and
+0.9% respectively. March 20, 1995 was the inception date for
Class B and Class Y. Total return for Class A is shown for
comparative purposes. The performance of Class B and Class Y will
vary from the performance of Class A based on differences in sales
charges and fees.
Assumes: Holding period from 8/1/87 to 6/30/95. Returns do not
reflect taxes payable on distributions. Also see "Performance" in
the fund's current prospectus. Reinvestment of all income and
capital gains distributions for the fund, with a value of $6,427.
The Lehman Total Return Muni Index is an unmanaged list of
municipal bonds used as a general measure of market performance.
On the graph 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 index. 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.
<PAGE>
PAGE 18
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than their original cost.
This was a period of widely fluctuating security prices. Past
performance is no guarantee of future results.<PAGE>
PAGE 19
<TABLE>
<CAPTION>
IDS Michigan Tax-Exempt Fund
(Pie chart) The ten holdings listed here make up 25.51% of the fund's net assets
Your fund's ten largest holdings
______________________________________________________________________________________________
Percent Value
(of fund's net assets) (as of June 30, 1995)
______________________________________________________________________________________________
<S> <C> <C>
State Housing Development Authority Rental Housing
Refunding Revenue Bonds Series B
5.70% 2012 3.04% $2,388,100
Romulus Township School District Unlimited Tax
General Obligation Refunding Bonds
5.75% 2022 3.04 2,384,875
State Building Authority Refunding Revenue Bonds
Series 1991I
6.25% 2020 2.78 2,180,420
State Hospital Finance Authority Hospital
Pre-Refunded Revenue Bonds McLaren Obligated Group
Series 1991A
7.50% 2021 2.59 2,036,195
Eaton County Water System Limited Tax
General Obligation Bonds
5.00% 2013 2.52 1,974,214
Monroe County Pollution Control Revenue Bonds AMT
Detroit Edison Fermi 2 Plants Series CC
7.50% 2019 2.47 1,936,060
Caledonia Community School Unlimited Tax
General Obligation Refunding Revenue Bonds
5.50% 2022 2.37 1,862,200
State Strategic Fund Limited Tax Obligation
Refunding Revenue Bonds Ford Motor Series 1991A
7.10% 2006 2.28 1,790,613
Battle Creek Water Supply System
Pre-Refunded Revenue Bonds Series 1990B
6.375% 2008-2010 2.25 1,767,330
Buena Vista School District Saginaw County
School Building & Site Unlimited Tax
General Obligation Pre-Refunded Bonds Series 1991
7.20% 2016 2.17 1,704,765
</TABLE>
<PAGE>
PAGE 20
Your fund's long-term performance
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 gains distributions to buy additional shares
of the fund or another fund.
Class A*
How your $10,000 has grown in IDS Michigan Tax-Exempt Fund
Average annual total return
(as of June 30, 1995)
Since
1 year 5 years 7/02/87
+1.26% +6.72% +6.70% $16,967
Lehman Total Return Michigan
$10,000 Muni Index Tax-Exempt Fund
$ 9,500
8/1/87 '88 '89 '90 '91 '92 '93 '94 '95
* The graph above is for Class A only. Class B and Class Y are not
shown. Total returns for Class A, Class B and Class Y for the
period from March 20, 1995 to June 30, 1995 were -4.0%, -4.1% and
+0.9% respectively. March 20, 1995 was the inception date for
Class B and Class Y. Total return for Class A is shown for
comparative purposes. The performance of Class B and Class Y will
vary from the performance of Class A based on differences in sales
charges and fees.
Assumes: Holding period from 8/1/87 to 6/30/95. Returns do not
reflect taxes payable on distributions. Also see "Performance" in
the fund's current prospectus. Reinvestment of all income and
capital gains distributions for the fund, with a value of $6,578.
The Lehman Total Return Muni Index is an unmanaged list of
municipal bonds used as a general measure of market performance.
On the graph 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 index. 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.
<PAGE>
PAGE 21
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than their original cost.
This was a period of widely fluctuating security prices. Past
performance is no guarantee of future results.<PAGE>
PAGE 22
<TABLE>
<CAPTION>
IDS Minnesota Tax-Exempt Fund
(Pie chart) The ten holdings listed here make up 21.06% of the fund's net assets
Your fund's ten largest holdings
____________________________________________________________________________________
Percent Value
(of fund's net assets) (as of June 30, 1995)
____________________________________________________________________________________
<S> <C> <C>
St. Paul & Minneapolis Housing & Redevelopment
Authority Health Care Facility Revenue Bonds
Group Health Plan Series 1992
6.75% 2013 2.68% $10,906,665
Minneapolis Housing & Redevelopment Authority of St. Paul
Health Care System Revenue Bonds Healthspan Series 1993
4.75% 2018 2.47 10,034,280
Osseo Area Schools Independent School District #279
General Obligation School Building Bonds
5.40% 2010-2012 2.28 9,299,028
State General Obligation Various Purpose Pre-Refunded Bonds
Series 1991
6.70% 2011 2.17 8,833,360
State General Obligation Various Purpose Pre-Refunded Bonds
Series 1990
7.00% 2009 2.13 8,680,216
Anoka County General Obligation Capital Improvement
Revenue Bonds Series 1989B
7.00% 2007-2010 2.09 8,519,458
Hennepin County Lease Revenue
Certificate of Participation Series 1991
6.80% 2017 1.90 7,718,495
Western Minnesota Municipal Power Agency Supply
Refunding Revenue Bonds Series 1987A
7.00% 2013 1.88 7,633,756
Edina Multi-family Housing Revenue Bonds
Walker Assisted Living Series 1991
9.00% 2031 1.80 7,312,112
Fairbault Rice & Goodhue County Independent School District #656
General Obligation School Building Bonds Series 1995
5.75% 2015 1.66 6,755,514
</TABLE>
<PAGE>
PAGE 23
Your fund's long-term performance
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 gains distributions to buy additional shares
of the fund or another fund.
Class A*
How your $10,000 has grown in IDS Minnesota Tax-Exempt Fund
Average annual total return
(as of June 30, 1995)
Since
1 year 5 years 8/18/86
+1.43% +6.22% +6.41% $17,001
Lehman Total Return Minnesota
$10,000 Muni Index Tax-Exempt Fund
$ 9,500
9/1/86 '87 '88 '89 '90 '91 '92 '93 '94 '95
* The graph above is for Class A only. Class B and Class Y are not
shown. Total returns for Class A, Class B and Class Y for the
period from March 20, 1995 to June 30, 1995 were -4.1%, -4.2% and
+0.8% respectively. March 20, 1995 was the inception date for
Class B and Class Y. Total return for Class A is shown for
comparative purposes. The performance of Class B and Class Y will
vary from the performance of Class A based on differences in sales
charges and fees.
Assumes: Holding period from 9/1/86 to 6/30/95. Returns do not
reflect taxes payable on distributions. Also see "Performance" in
the fund's current prospectus. Reinvestment of all income and
capital gains distributions for the fund, with a value of $7,339.
The Lehman Total Return Muni Index is an unmanaged list of
municipal bonds used as a general measure of market performance.
On the graph 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 index. 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.
<PAGE>
PAGE 24
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than their original cost.
This was a period of widely fluctuating security prices. Past
performance is no guarantee of future results.<PAGE>
PAGE 25
<TABLE>
<CAPTION>
IDS New York Tax-Exempt Fund
Your fund's ten largest holdings
(Pie chart)
The ten holdings listed here make up 33.97% of the fund's
net assets
______________________________________________________________________________________
Percent Value
(of fund's net assets)(as of June 30, 1995)
______________________________________________________________________________________
<S> <C> <C>
State Energy Research & Development Authority
Electric Facility Revenue Bonds AMT Consolidated Edison
Series 1990A
7.50% 2025 4.40% $ 5,345,200
State Urban Development Correction Facility
Pre-Refunded Revenue Bonds Series 1
7.50% 2020 4.20 5,106,465
State Local Government Assistance Pre-Refunded Bonds
Series 1991A
7.00% 2016 3.73 4,535,040
United Nations Development Senior Lien
Refunding Revenue Bonds Series 1992A
6.00% 2026 3.57 4,340,700
State Mortgage Agency Homeowner Mortgage Revenue Bonds
Series TT
7.50% 2015 3.54 4,306,240
State Dormitory Authority City University System
Pre-Refunded Revenue Bonds
8.125% 2017 3.06 3,727,352
State Medical Care Facility Finance Agency Revenue Bonds
Hospital & Nursing Series B
6.25% 2025 3.04 3,699,512
Battery Park City Authority Senior Refunding Revenue Bonds
Series 1993A
5.25% 2017 2.91 3,534,600
Triborough Bridge & Tunnel Authority General Purpose
Pre-Refunded Revenue Bonds Series S
7.00% 2021 2.78 3,376,890
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 3,329,430
</TABLE>
<PAGE>
PAGE 26
Your fund's long-term performance
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 gains distributions to buy additional shares
of the fund or another fund.
Class A*
How your $10,000 has grown in IDS New York Tax-Exempt Fund
Average annual total return
(as of June 30, 1995)
Since
1 year 5 years 8/18/86
+0.18% +6.35% +6.02% $16,745
Lehman Total Return New York
$10,000 Muni Index Tax-Exempt Fund
$ 9,500
9/1/86 '87 '88 '89 '90 '91 '92 '93 '94 '95
* The graph above is for Class A only. Class B and Class Y are not
shown. Total returns for Class A, Class B and Class Y for the
period from March 20, 1995 to June 30, 1995 were -4.6%, -4.8% and
+0.4% respectively. March 20, 1995 was the inception date for
Class B and Class Y. Total return for Class A is shown for
comparative purposes. The performance of Class B and Class Y will
vary from the performance of Class A based on differences in sales
charges and fees.
Assumes: Holding period from 9/1/86 to 6/30/95. Returns do not
reflect taxes payable on distributions. Also see "Performance" in
the fund's current prospectus. Reinvestment of all income and
capital gains distributions for the fund, with a value of $7,111.
The Lehman Total Return Muni Index is an unmanaged list of
municipal bonds used as a general measure of market performance.
On the graph 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 index. 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.
<PAGE>
PAGE 27
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than their original cost.
This was a period of widely fluctuating security prices. Past
performance is no guarantee of future results.<PAGE>
PAGE 28
<TABLE>
<CAPTION>
IDS Ohio Tax-Exempt Fund
(Pie chart) The ten holdings listed here make up 24.45% of the fund's net assets
Your fund's ten largest holdings
___________________________________________________________________________________________
Percent Value
(of fund's net assets)(as of June 30, 1995)
___________________________________________________________________________________________
<S> <C> <C>
Lakota Local School District Unlimited Tax Improvement
General Obligation Bonds
6.25% 2014 2.77% $ 2,056,900
State Air Quality Development Authority
Refunding Revenue Bonds AMT Series 1994
6.375% 2029 2.77 2,055,540
Erie County Hospital Improvement Refunding Revenue Bonds
Firelands Community Hospital Series 1992
6.75% 2015 2.75 2,034,840
State Municipal Electric Generation Agency
Joint Venture #5 Revenue Bonds
5.375% 2024 2.46 1,822,220
State Valley School District School Improvement
Unlimited Tax General Obligation Bonds
Counties of Adams & Highland Series 1995
5.25% 2021 2.46 1,822,000
Butler County Hospital Facility Improvement
Refunding Revenue Bonds
7.50% 2010 2.44 1,805,107
Lucas County Hospital Refunding Revenue Bonds
St. Vincent's Medical Center Series B
5.25% 2020 2.42 1,792,160
Franklin County Convention Facilities Authority
Tax & Lease Revenue Anticipation Pre-Refunded Bonds
7.00% 2019 2.28 1,691,220
State Housing Finance Agency Mortgage Revenue Bonds
AMT Aristocrat South Board & Care Series 1991A
7.30% 2031 2.13 1,578,105
Cleveland Airport Systems Revenue Bonds AMT Series A
6.00% 2024 1.97 1,462,050
</TABLE>
<PAGE>
PAGE 29
Your fund's long-term performance
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 gains distributions to buy additional shares
of the fund or another fund.
Class A*
How your $10,000 has grown in IDS Ohio Tax-Exempt Fund
Average annual total return
(as of June 30, 1995)
Since
1 year 5 years 7/02/87
+0.92% +6.35% +6.44% $16,677
Lehman Total Return Ohio
$10,000 Muni Index Tax-Exempt Fund
$ 9,500
8/1/87 '88 '89 '90 '91 '92 '93 '94 '95
* The graph above is for Class A only. Class B and Class Y are not
shown. Total returns for Class A, Class B and Class Y for the
period from March 20, 1995 to June 30, 1995 were -4.3%, -4.4% and
+0.2% respectively. March 20, 1995 was the inception date for
Class B and Class Y. Total return for Class A is shown for
comparative purposes. The performance of Class B and Class Y will
vary from the performance of Class A based on differences in sales
charges and fees.
Assumes: Holding period from 9/1/86 to 6/30/95. Returns do not
reflect taxes payable on distributions. Also see "Performance" in
the fund's current prospectus. Reinvestment of all income and
capital gains distributions for the fund, with a value of $6,482.
The Lehman Total Return Muni Index is an unmanaged list of
municipal bonds used as a general measure of market performance.
On the graph 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 index. 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.
<PAGE>
PAGE 30
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than their original cost.
This was a period of widely fluctuating security prices. Past
performance is no guarantee of future results.<PAGE>
Making the most of your fund
Class A
California Tax-Exempt Fund - average annual total return
(June 30, 1995)
1 year 5 years Since inception*
+1.19% +6.20% +6.17%
*Aug. 18, 1986
Massachusetts Tax-Exempt Fund - average annual total return
(June 30, 1995)
1 year 5 years Since inception*
+1.21% +6.57% +6.43%
*July 2, 1987
Michigan Tax-Exempt Fund - average annual total return
(June 30, 1995)
1 year 5 years Since inception*
+1.26% +6.72% +6.70%
*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 as discussed
in the prospectus. This was a period of widely fluctuating
security prices. Past performance is no guarantee of future
results.
Total Returns
(Period from March 20, 1995 to June 30, 1995)
Class A Class B Class Y
California Tax-Exempt Fund -4.2% -4.2% +0.2%
Massachusetts Tax-Exempt Fund -4.0 -4.1 +0.9
Michigan Tax-Exempt Fund -4.0 -4.1 +0.9
The table above shows total returns for the three classes for the
period from March 20, 1995 to June 30, 1995. March 20, 1995 was
the inception date for Class B and Class Y. Total return for Class
A is shown for comparative purposes. The performance of Class B
and Class Y will vary from the performance of Class A based on
differences in sales charges and fees. Past performance for Class
Y for the periods prior to March 20, 1995 may be calculated based
on the performance of Class A, adjusted to reflect differences in
sales charges although not other differences in expenses.
Class A
Minnesota Tax-Exempt Fund - average annual total return
(June 30, 1995)
1 year 5 years Since inception*
+1.43% +6.22% +6.41%
*Aug. 18, 1986
<PAGE>
PAGE 32
New York Tax-Exempt Fund - average annual total return
(June 30, 1995)
1 year 5 years Since inception*
+0.18% +6.35% +6.02%
*Aug. 18, 1986
Ohio Tax-Exempt Fund - average annual total return
(June 30, 1995)
1 year 5 years Since inception*
+0.92% +6.35% +6.44%
*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 as discussed
in the prospectus. This was a period of widely fluctuating
security prices. Past performance is no guarantee of future
results.
Total Returns
(Period from March 20, 1995 to June 30, 1995)
Class A Class B Class Y
Minnesota Tax-Exempt Fund -4.1% -4.2% +0.8%
New York Tax-Exempt Fund -4.6 -4.8 +0.4
Ohio Tax-Exempt Fund -4.3 -4.4 +0.2
The table above shows total returns for the three classes for the
period from March 20, 1995 to June 30, 1995. March 20, 1995 was
the inception date for Class B and Class Y. Total return for Class
A is shown for comparative purposes. The performance of Class B
and Class Y will vary from the performance of Class A based on
differences in sales charges and fees. Past performance for Class
Y for the periods prior to March 20, 1995 may be calculated based
on the performance of Class A, adjusted to reflect differences in
sales charges although not other differences in expenses.
Making the most of your fund
Build your assets systematically
To keep your assets growing steadily, one of the best ways to use
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.
<PAGE>
PAGE 33
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 34
__________________________________________________________________
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, 1995, 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, 1995, the financial highlights for each of the years
in the six-year period ended June 30, 1995, 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 eight-year period ended June 30, 1995, 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 35
__________________________________________________________________
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, 1995,
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, 1995, and the financial highlights for the
periods stated in the first paragraph above, in conformity with
generally accepted accounting principles.
KPMG Peat Marwick LLP
Minneapolis, Minnesota
August 4, 1995
<PAGE>
PAGE 36
Financial statements
Statements of assets and liabilities
IDS California Tax-Exempt Trust
IDS Special Tax-Exempt Series Trust
June 30, 1995
<TABLE>
<CAPTION>
_____________________________________________________________________________________________________________________________
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 $220,918,920, $65,162,696 and
$72,749,708) $236,559,214 $68,218,531 $77,203,335
Cash in bank on demand deposit 2,230,320 500,217 43,795
Accrued interest receivable 4,702,894 1,491,471 1,210,420
Receivable for investment securities sold 58,782 7,228 1,250,019
_____________________________________________________________________________________________________________________________
Total assets 243,551,210 70,217,447 79,707,569
_____________________________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________________________
Dividends payable to shareholders 146,435 42,052 47,603
Payable for investment securities purchased 1,897,567 8,746 1,088,368
Accrued investment management services fee 68,919 20,962 23,751
Accrued distribution fee 855 797 362
Accrued service fee 27,018 7,934 8,846
Accrued transfer agency fee 6,122 2,806 2,677
Accrued administrative services fee 6,173 1,784 2,021
Other accrued expenses 35,241 19,618 35,234
_____________________________________________________________________________________________________________________________
Total liabilities 2,188,330 104,699 1,208,862
_____________________________________________________________________________________________________________________________
Net assets applicable to outstanding shares $241,362,880 $70,112,748 $78,498,707
_____________________________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________________________
Shares of beneficial interest - $.01 par value, unlimited
number of shares authorized $ 468,082 $ 132,998 $ 145,657
Additional paid-in capital 232,542,662 68,486,517 74,742,452
Undistributed net investment income 2,661 -- 2,198
Accumulated net realized loss (Notes 1 and 6) (7,290,819) (1,562,602) (845,227)
Unrealized appreciation 15,640,294 3,055,835 4,453,627
_____________________________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding shares $241,362,880 $70,112,748 $78,498,707
_____________________________________________________________________________________________________________________________
Net assets applicable to outstanding shares: Class A $239,316,429 $68,267,204 $77,509,482
Class B $ 2,045,441 $ 1,844,530 $ 988,214
Class Y $ 1,010 $ 1,014 $ 1,011
Outstanding shares of beneficial interest: Class A shares 46,411,360 12,949,679 14,382,196
Class B shares 396,638 349,909 183,333
Class Y shares 196 192 187
Net asset value per share Class A $ 5.16 $ 5.27 $ 5.39
Class B $ 5.16 $ 5.27 $ 5.39
Class Y $ 5.15 $ 5.28 $ 5.41
See accompanying notes to financial statements.
<PAGE>
PAGE 37
Financial statements
Statements of assets and liabilities
IDS California Tax-Exempt Trust
IDS Special Tax-Exempt Series Trust
June 30, 1995
_____________________________________________________________________________________________________________________________
Assets
_____________________________________________________________________________________________________________________________
Minnesota New York Ohio
Tax-Exempt Tax-Exempt Tax-Exempt
Fund Fund Fund
_____________________________________________________________________________________________________________________________
Investments in securities, at value (Note 1)
(identified cost $381,197,944, $112,186,178
and $69,835,567) $398,818,639 $119,322,025 $72,981,828
Cash in bank on demand deposit 2,940,479 -- 109,155
Accrued interest receivable 8,738,803 2,497,080 1,103,323
Receivable for investment securities sold 2,794,340 33,883 13,460
_____________________________________________________________________________________________________________________________
Total assets 413,292,261 121,852,988 74,207,766
_____________________________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________________________
Disbursements in excess of cash on demand deposit -- 2,169 --
Dividends payable to shareholders 293,509 167,747 57,677
Payable for investment securities purchased 5,841,807 23,440 10,861
Accrued investment management services fee 119,655 36,474 22,315
Accrued distribution fee 1,074 836 305
Accrued service fee 45,497 13,584 8,311
Accrued transfer agency fee 14,813 4,588 2,621
Accrued administrative services fee 9,890 3,104 1,899
Other accrued expenses 73,818 17,524 23,281
_____________________________________________________________________________________________________________________________
Total liabilities 6,400,063 269,466 127,270
_____________________________________________________________________________________________________________________________
Net assets applicable to outstanding shares $406,892,198 $121,583,522 $74,080,496
_____________________________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________________________
Shares of beneficial interest - $.01 par value, unlimited
number of shares authorized $ 783,815 $ 238,972 $ 140,424
Additional paid-in capital 399,894,149 118,232,931 72,396,659
Undistributed net investment income 10,692 -- (35,368)
Accumulated net realized loss (Notes 1 and 6) (11,417,153) (4,024,228) (1,567,480)
Unrealized appreciation 17,620,695 7,135,847 3,146,261
_____________________________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding shares $406,892,198 $121,583,522 $74,080,496
_____________________________________________________________________________________________________________________________
Net assets applicable to outstanding shares: Class A $402,827,560 $119,701,864 $73,370,743
Class B $ 4,063,624 $ 1,880,652 $ 708,745
Class Y $ 1,014 $ 1,006 $ 1,008
Outstanding shares of beneficial interest: Class A shares 77,598,556 23,527,327 13,907,946
Class B shares 782,831 369,640 134,347
Class Y shares 195 197 191
Net asset value per share: Class A $ 5.19 $ 5.09 $ 5.28
Class B $ 5.19 $ 5.09 $ 5.28
Class Y $ 5.20 $ 5.11 $ 5.28
See accompanying notes to financial statements.
<PAGE>
PAGE 38
Financial statements
Statements of operations
IDS California Tax-Exempt Trust
IDS Special Tax-Exempt Series Trust
Year ended June 30, 1995
_____________________________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________________________
California Massachusetts Michigan
Tax-Exempt Tax-Exempt Tax-Exempt
Fund Fund Fund
_____________________________________________________________________________________________________________________________
Income:
Interest $15,885,649 $4,441,066 $4,928,265
_____________________________________________________________________________________________________________________________
Expenses (Note 2):
Investment management services fee 1,222,758 349,517 390,460
Distribution fee
Class A 28,560 13,369 12,119
Class B 2,542 2,246 741
Transfer agency fee 99,632 47,199 42,999
Incremental transfer agency fee - Class B 18 12 4
Service fee
Class A 119,787 33,912 39,225
Class B 593 524 173
Administrative services fee 27,514 7,871 9,004
Compensation of trustees 5,779 8,440 5,525
Compensation of officers 2,758 876 1,015
Postage 13,862 6,461 6,863
Registration fees 13,632 4,409 8,296
Reports to shareholders 17,628 5,198 2,776
Audit fees 16,500 15,250 15,250
Administrative 3,641 2,847 2,330
Other 3,470 1,579 1,798
_____________________________________________________________________________________________________________________________
Total expenses 1,578,674 499,710 538,578
_____________________________________________________________________________________________________________________________
Investment income -- net 14,306,975 3,941,356 4,389,687
_____________________________________________________________________________________________________________________________
Realized and unrealized gain (loss) -- net
_____________________________________________________________________________________________________________________________
Net realized gain (loss) on security transactions (Note 3) 1,987,621 (47,218) 872,830
Net realized loss on closed interest rate futures contracts (6,407,164) (1,306,219) (1,490,804)
Net realized gain on exercised or expired option contracts written (Note 5) 383,730 94,897 99,893
_____________________________________________________________________________________________________________________________
Net realized loss on investments (4,035,813) (1,258,540) (518,081)
Net change in unrealized appreciation or depreciation 4,486,171 1,474,819 1,141,073
_____________________________________________________________________________________________________________________________
Net gain on investments 450,358 216,279 622,992
_____________________________________________________________________________________________________________________________
Net increase in net assets resulting from operations $14,757,333 $ 4,157,635 $ 5,012,679
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
<PAGE>
PAGE 39
Financial statements
Statements of operations
IDS California Tax-Exempt Trust
IDS Special Tax-Exempt Series Trust
Year ended June 30, 1995
_____________________________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________________________
Minnesota New York Ohio
Tax-Exempt Tax-Exempt Tax-Exempt
Fund Fund Fund
_____________________________________________________________________________________________________________________________
Income:
Interest $26,599,512 $7,881,568 $4,572,096
_____________________________________________________________________________________________________________________________
Expenses (Note 2):
Investment management services fee 2,013,423 599,733 365,009
Distribution fee
Class A 68,448 20,691 11,684
Class B 4,110 2,283 798
Transfer agency fee 241,659 73,377 41,650
Incremental transfer agency fee - Class B 40 20 9
Service fee
Class A 201,030 59,534 36,657
Class B 959 533 186
Administrative services fee 43,930 13,729 8,420
Compensation of trustees 25,823 4,678 4,273
Compensation of officers 3,322 1,286 881
Postage 29,942 9,930 5,187
Registration fees 358 10,279 11,372
Reports to shareholders 11,428 6,095 3,097
Audit fees 17,500 16,500 15,250
Administrative 3,049 1,652 1,469
Other 4,530 2,629 4,484
_____________________________________________________________________________________________________________________________
Total expenses 2,669,551 822,949 510,426
_____________________________________________________________________________________________________________________________
Investment income -- net 23,929,961 7,058,619 4,061,670
_____________________________________________________________________________________________________________________________
Realized and unrealized gain (loss) -- net
_____________________________________________________________________________________________________________________________
Net realized gain (loss) on security transactions (Note 3) (972,864) 137,459 122,298
Net realized loss on closed interest rate futures contracts (9,098,172) (3,141,580) (1,484,784)
Net realized gain on exercised or expired option contracts written (Note 5) 843,570 179,961 99,893
______________________________________________________________________________________________________________________________
Net realized loss on investments (9,227,466) (2,824,160) (1,262,593)
Net change in unrealized appreciation or depreciation 10,495,908 1,994,739 1,448,594
_____________________________________________________________________________________________________________________________
Net gain (loss) on investments 1,268,442 (829,421) 186,001
_____________________________________________________________________________________________________________________________
Net increase in net assets resulting from operations $25,198,403 $ 6,229,198 $ 4,247,671
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
PAGE 40
<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 1995 1994 1995 1994
_____________________________________________________________________________________________________________________________
California Tax-Exempt Fund Massachusetts Tax-Exempt Fund
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Investment income -- net $ 14,306,975 $ 15,236,634 $ 3,941,356 $ 3,862,026
Net realized loss on investments (4,035,813) (2,375,504) (1,258,540) (29,934)
Net change in unrealized appreciation or depreciation 4,486,171 (11,906,345) 1,474,819 (3,499,662)
_____________________________________________________________________________________________________________________________
Net increase in net assets resulting
from operations 14,757,333 954,785 4,157,635 332,430
_____________________________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income
Class A (14,290,556) (15,235,348) (3,926,867) (3,862,035)
Class B (16,509) -- (14,479) --
Class Y (11) -- (10) --
_____________________________________________________________________________________________________________________________
Total distributions (14,307,076) (15,235,348) (3,941,356) (3,862,035)
_____________________________________________________________________________________________________________________________
Share transactions (Note 4)
_____________________________________________________________________________________________________________________________
Proceeds from sales
Class A shares (Note 2) 22,693,617 35,683,408 10,352,839 22,403,265
Class B shares 2,091,151 -- 1,991,573 --
Class Y shares 1,020 -- 1,021 --
Reinvestment of distributions at asset value
Class A shares 9,854,175 10,573,864 3,023,192 3,055,527
Class B shares 13,558 -- 12,005 --
Class Y shares 11 -- 10 --
Payments for redemptions
Class A shares (48,910,065) (37,967,003) (17,395,360) (14,032,861)
Class B shares (Note 2) (27,600) -- (137,393) --
_____________________________________________________________________________________________________________________________
Increase (decrease) in net assets from
share transactions (14,284,133) 8,290,269 (2,152,113) 11,425,931
_____________________________________________________________________________________________________________________________
Total increase (decrease) in net assets (13,833,876) (5,990,294) (1,935,834) 7,896,326
Net assets at beginning of year 255,196,756 261,187,050 72,048,582 64,152,256
_____________________________________________________________________________________________________________________________
Net assets at end of year
(including undistributed net investment income
for IDS California of $2,661 for 1995
and $35 for 1994) $241,362,880 $255,196,756 $70,112,748 $72,048,582
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
<PAGE>
PAGE 41
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 1995 1994 1995 1994
______________________________________________________________________________________________________________________________
Michigan Tax-Exempt Fund Minnesota Tax-Exempt Fund
______________________________________________________________________________________________________________________________
Investment income -- net $ 4,389,687 $ 4,171,457 $ 23,929,961 $ 24,205,532
Net realized loss on investments (518,081) (72,444) (9,227,466) (351,284)
Net change in unrealized appreciation or depreciation 1,141,073 (3,496,616) 10,495,908 (22,689,828)
_____________________________________________________________________________________________________________________________
Net increase in net assets
resulting from operations 5,012,679 602,397 25,198,403 1,164,420
_____________________________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income
Class A (4,384,843) (4,171,489) (23,900,319) (24,204,281)
Class B (4,833) -- (29,555) --
Class Y (11) -- (11) --
Net realized gain
Class A (36,289) (68,841) -- --
_____________________________________________________________________________________________________________________________
Total distributions (4,425,976) (4,240,330) (23,929,885) (24,204,281)
_____________________________________________________________________________________________________________________________
Share transactions (Note 4)
_____________________________________________________________________________________________________________________________
Proceeds from sales
Class A shares (Note 2) 12,053,759 15,113,866 57,985,486 81,250,235
Class B shares 997,872 -- 4,124,509 --
Class Y shares 1,020 -- 1,020 --
Reinvestment of distributions at net asset value
Class A shares 3,277,481 3,148,115 18,880,977 19,448,232
Class B shares 4,262 -- 24,745 --
Class Y shares 11 -- 11 --
Payment for redemptions
Class A shares (15,101,862) (9,715,456) (83,747,345) (70,952,363)
Class B shares (Note 2) (3,353) -- (36,354) --
_____________________________________________________________________________________________________________________________
Increase (decrease) in net assets from
share transactions 1,229,190 8,546,525 (2,766,951) 29,746,104
______________________________________________________________________________________________________________________________
Total increase (decrease) in net assets 1,815,893 4,908,592 (1,498,433) 6,706,243
Net assets at beginning of year 76,682,814 71,774,222 408,390,631 401,684,388
_____________________________________________________________________________________________________________________________
Net assets at end of year
(including undistributed net investment income
for IDS Michigan of $2,198 for 1995 and
IDS Minnesota of $10,692 for 1995) $78,498,707 $76,682,814 $406,892,198 $408,390,631
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
<PAGE>
PAGE 42
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 1995 1994 1995 1994
_____________________________________________________________________________________________________________________________
New York Tax-Exempt Fund Ohio Tax-Exempt Fund
_____________________________________________________________________________________________________________________________
Investment income -- net $ 7,058,619 $ 6,895,342 $ 4,061,670 $ 3,927,846
Net realized loss on investments (2,824,160) (505,058) (1,262,593) (177,991)
Net change in unrealized appreciation or depreciation 1,994,739 (6,437,361) 1,448,594 (4,272,974)
_____________________________________________________________________________________________________________________________
Net increase (decrease) in net assets
resulting from operations 6,229,198 (47,077) 4,247,671 (523,119)
_____________________________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income
Class A (7,042,080) (6,894,339) (4,092,348) (3,927,883)
Class B (16,527) -- (5,227) --
Class Y (12) -- (11) --
Net realized gain
Class A -- -- -- (786)
_____________________________________________________________________________________________________________________________
Total distributions (7,058,619) (6,894,339) (4,097,586) (3,928,669)
_____________________________________________________________________________________________________________________________
Share transactions (Note 4)
_____________________________________________________________________________________________________________________________
Proceeds from sales
Class A shares (Note 2) 16,050,177 21,355,340 12,347,956 17,974,999
Class B shares 1,923,002 -- 715,678 --
Class Y shares 1,020 -- 1,020 --
Reinvestment of distributions at net asset value
Class A shares 5,362,620 5,365,427 3,162,750 3,100,875
Class B shares 12,791 -- 3,706 --
Class Y shares 12 -- 11 --
Payments for redemptions
Class A shares (21,072,998) (16,789,123) (14,135,624) (9,646,507)
Class B shares (Note 2) (22,313) -- (21) --
_____________________________________________________________________________________________________________________________
Increase in net assets from
share transactions 2,254,311 9,931,644 2,095,476 11,429,367
_____________________________________________________________________________________________________________________________
Total increase in net assets 1,424,890 2,990,228 2,245,561 6,977,579
Net assets at beginning of year 120,158,632 117,168,404 71,834,935 64,857,356
_____________________________________________________________________________________________________________________________
Net assets at end of year
(including undistributed net investment income
for IDS Ohio of $(35,368) for 1995) $121,583,522 $120,158,632 $74,080,496 $71,834,935
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements
</TABLE>
<PAGE>
PAGE 43
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 currently composed of individual state tax-exempt funds and
one insured national tax-exempt fund, including IDS Massachusetts
Tax-Exempt Fund, IDS Michigan Tax-Exempt Fund, IDS Minnesota Tax-
Exempt Fund, IDS New York Tax-Exempt Fund, IDS Ohio Tax-Exempt Fund
and IDS Insured 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,
excluding IDS Insured Tax-Exempt Fund, 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.
Each fund offers Class A, Class B and Class Y shares. Class A
shares are sold with a front-end sales charge. Class B shares,
which each fund began offering on March 20, 1995, may be subject to
a contingent deferred sales charge. Class B shares automatically
convert to Class A after eight years. Class Y shares, which each
fund also began offering on March 20, 1995, have no sales charge
and are offered only to qualifying institutional investors.
All classes of shares have identical voting, dividend, liquidation
and other rights, and the same terms and conditions, except that
the level of distribution fee, transfer agency fee and service fee
(class specific expenses) differ among classes. Income, expenses
(other than class specific expenses) and realized and unrealized
gains or losses on investments are allocated to each class of
shares based upon its relative net assets.
Significant accounting policies followed by the fund 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.
<PAGE>
PAGE 44
Option transactions
In order to produce incremental earnings, protect gains and
facilitate buying and selling of securities for investment
purposes, each fund may buy and sell put and call options and write
covered call options on portfolio securities and may write cash-
secured put options. The risk in writing a call option is that each
fund gives up the opportunity of profit if the market price of the
security increases. The risk in writing a put option is that each
fund may incur a loss if the market price of the security decreases
and the option is exercised. The risk in buying an option is that
each fund pays a premium whether or not the option is exercised.
Each fund also has the additional risk of not being able to enter
into a closing transaction if a liquid secondary market does not
exist. Each fund also may write over-the-counter options where the
completion of the obligation is dependent upon the credit standing
of the other party.
Option contracts are valued daily at the closing prices on their
primary exchanges and unrealized appreciation or depreciation is
recorded. Each fund will realize a gain or loss upon expiration or
closing of the option transaction. When options on debt securities
or futures are exercised, the fund will realize a gain or loss.
When other options are exercised, the proceeds on sales for a
written call option, the purchase cost for a written put option or
the cost of a security for a purchase put or call option is
adjusted by the amount of the premium received or paid.
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.
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<PAGE>
PAGE 45
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.
On the statement of assets and liabilities, as a result of
permanent book-to-tax differences, undistributed net investment
income has been increased by $2,727 for IDS California, $2,198 for
IDS Michigan, $10,616 for IDS Minneasota and $548 for IDS Ohio tax-
exempt funds. Accumulated net realized loss has been increased by
$2,727 for IDS California, $2,198 for IDS Michigan, $10,616 for IDS
Minnesota and $548 for IDS Ohio tax-exempt funds.
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.
At June 30, 1995, American Express Financial Corporation owned 196
Class Y shares for IDS California, 192 for IDS Massachusetts, 187
for IDS Michigan, 195 for IDS Minnesota, 197 for IDS New York and
191 for IDS Ohio tax-exempt funds.
___________________________________________________________________
2. Expenses and sales charges
Under terms of a prior agreement that ended March 19, 1995, the
fund paid American Express Financial Corporation a fee for managing
its investments, recordkeeping and other specified services. The
fee was 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.
Also under the terms of a prior agreement, each fund paid American
Express Financial Corporation 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 was reduced by earnings on monies pending shareholder
redemptions.
Effective March 20, 1995, when each fund began offering multiple
classes of shares, each fund entered into agreements with American
Express Financial Corporation for managing its portfolio, providing
administrative services and serving as transfer agent as follows:
Under its Investment Management Services Agreement, American
Express Financial Corporation determines which securities will be
purchased, held or sold. The management fee is a percentage of each<PAGE>
PAGE 46
fund's average daily net assets in reducing percentages from 0.47%
to 0.38% annually. Under an Administrative Services Agreement, each
fund pays American Express Financial Corporation for administration
and accounting services at a percentage of each fund's average
daily net assets in reducing percentages from 0.04% to 0.02%
annually.
Under a separate Transfer Agency Agreement, American Express
Financial Corporation maintains shareholder accounts and records.
Each fund pays American Express Financial Corporation an annual fee
per shareholder account for this service as follows:
o Class A $15.50
o Class B $16.50
o Class Y $15.50
Also effective March 20, 1995, each fund entered into agreements
with American Express Financial Advisors Inc. for distribution and
shareholder servicing-related services as follows: Under the
Distribution Agreement, each fund pays a distribution fee at an
annual rate of 0.75% of the fund's average daily net assets
attributable to Class B shares for distribution-related services.
Under a Shareholder Service Agreement, each fund pays a fee for
service provided to shareholders by financial advisors and other
servicing agents. The fee is calculated at a rate of 0.175% of each
fund's average daily net assets attributable to Class A and Class B
shares.
American Express Financial Corporation will assume and pay any
expenses (except taxes and brokerage commissions) that exceed the
most restrictive applicable state expense limitation.
Sales charges by American Express Financial Advisors Inc. for
distributing the funds' shares were $480,433 Class A, $10 Class B
for IDS California; $296,532 Class A for IDS Massachusetts;
$176,901 Class A for IDS Michigan; $1,139,773 Class A for IDS
Minnesota; $408,324 Class A, $93 Class B for IDS New York; and
$205,263 Class A for IDS Ohio tax-exempt funds for the year ended
June 30, 1995.
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 $1,034 for IDS California, $1,640 for IDS
Massachusetts, $1,640 for IDS Michigan, $3,266 for IDS Minnesota,
$1,640 for IDS New York, and $1,742 for IDS Ohio Tax-Exempt Funds
for the year ended June 30, 1995.
___________________________________________________________________
3. Securities transactions
For the year ended June 30, 1995, cost of purchases and proceeds
from sales (other than short-term obligations) aggregated
$115,231,208 and $135,221,788 for IDS California, $10,437,562 and
$14,096,628 for IDS Massachusetts, $36,220,970 and $36,527,867 for
IDS Michigan, $110,080,828 and $113,701,660 for IDS Minnesota,<PAGE>
PAGE 47
$23,217,096 and $22,719,409 for IDS New York and $32,247,182 and
$31,374,995 for IDS Ohio Tax-Exempt Funds. Realized gains and
losses are determined on an identified cost basis.
___________________________________________________________________
4. Share transactions
Transactions in shares of each fund for the periods indicated are
as follows:
California Tax-Exempt Fund
_______________________________________________________
Period ended June 30, 1995 Year ended
06/30/94
Class A Class B* Class Y* Class A
______________________________________________________________________________
Sold 4,428,851 399,282 194 6,578,766
Issued for reinvested
distributions 1,929,797 2,588 2 1,962,600
Redeemed (9,662,241) (5,232) -- (7,091,287)
______________________________________________________________________________
Net increase
(decrease) (3,303,593) 396,638 196 1,450,079
______________________________________________________________________________
*Inception date was March 20, 1995 for Class B and Class Y.<PAGE>
PAGE 48
Massachusetts Tax-Exempt Fund
_______________________________________________________
Period ended June 30, 1995 Year ended
06/30/94
Class A Class B* Class Y* Class A
______________________________________________________________________________
Sold 1,986,963 373,441 190 4,061,994
Issued for reinvested
distributions 581,883 2,245 2 558,167
Redeemed (3,369,135) (25,777) -- (2,564,761)
______________________________________________________________________________
Net increase (decrease) (800,289) 349,909 192 2,055,400
______________________________________________________________________________
*Inception date was March 20, 1995 for Class B and Class Y.
Michigan Tax-Exempt Fund
_______________________________________________________
Period ended June 30, 1995 Year ended
06/30/94
Class A Class B* Class Y* Class A
______________________________________________________________________________
Sold 2,295,997 183,169 185 2,687,659
Issued for reinvested
distributions 615,732 779 2 562,683
Redeemed (2,849,810) (615) -- (1,739,752)
______________________________________________________________________________
Net increase 61,919 183,333 187 1,510,590
______________________________________________________________________________
*Inception date was March 20, 1995 for Class B and Class Y.
Minnesota Tax-Exempt Fund
_______________________________________________________
Period ended June 30, 1995 Year ended
06/30/94
Class A Class B* Class Y* Class A
______________________________________________________________________________
Sold 11,298,321 785,048 193 14,961,095
Issued for reinvested
distributions 3,679,693 4,700 2 3,599,781
Redeemed (16,502,683) (6,917) -- (13,233,479)
______________________________________________________________________________
Net increase
(decrease) (1,524,669) 782,831 195 5,327,397
______________________________________________________________________________
*Inception date was March 20, 1995 for Class B and Class Y.
New York Tax-Exempt Fund
_______________________________________________________
Period ended June 30, 1995 Year ended
06/30/94
Class A Class B* Class Y* Class A
______________________________________________________________________________
Sold 3,164,808 371,486 195 3,952,327
Issued for reinvested
distributions 1,057,342 2,472 2 999,332
Redeemed (4,176,540) (4,318) -- (3,127,657)
______________________________________________________________________________
Net increase 45,610 369,640 197 1,824,002
______________________________________________________________________________
*Inception date was March 20, 1995 for Class B and Class Y.
Ohio Tax-Exempt Fund
_______________________________________________________
Period ended June 30, 1995 Year ended
06/30/94
Class A Class B* Class Y* Class A
______________________________________________________________________________
Sold 2,368,379 133,660 189 3,231,719
Issued for reinvested
distributions 604,956 691 2 562,446
Redeemed (2,726,424) (4) -- (1,753,354)
______________________________________________________________________________
Net increase 246,911 134,347 191 2,040,811
______________________________________________________________________________
*Inception date was March 20, 1995 for Class B and Class Y.<PAGE>
PAGE 49
5. Option contracts written
The number of contracts and premium amounts associated with option
contracts written is as follows:
<TABLE><CAPTION>
California Tax-Exempt
Year ended June 30, 1995
____________________________________________
Puts Calls
____________________________________________
Contracts Premium Contracts Premium
____________________________________________
<S> <C> <C> <C> <C>
Balance June 30, 1994 -- $ -- -- $ --
Opened 150 219,810 237 163,920
Exercised (150) (219,810) (75) (89,710)
Expired -- -- (162) (74,210)
_____________________________________________________________
Balance June 30, 1995 -- $ -- -- $ --
_____________________________________________________________
</TABLE>
<TABLE><CAPTION>
Massachusetts Tax-Exempt
Year ended June 30, 1995
____________________________________________
Puts
____________________________________________
Contracts Premium
____________________________________________
<S> <C> <C>
Balance June 30, 1994 -- $ --
Opened 75 94,897
Exercised (35) (36,286)
Expired (40) (58,611)
___________________________________________
Balance June 30, 1995 -- $ --
____________________________________________
Michigan Tax-Exempt
Year ended June 30, 1995
____________________________________________
Puts
____________________________________________
Contracts Premium
____________________________________________
Balance June 30, 1994 -- $ --
Opened 80 99,893
Exercised (40) (41,282)
Expired (40) (58,611)
____________________________________________
Balance June 30, 1995 -- $ --
____________________________________________
</TABLE>
<TABLE><CAPTION>
Minnesota Tax-Exempt
Year ended June 30, 1995
____________________________________________
Puts Calls
____________________________________________
Contracts Premium Contracts Premium
____________________________________________
<S> <C> <C> <C> <C>
Balance June 30, 1994 -- $ -- -- $ --
Opened 425 622,088 322 221,481
Exercised -- -- (100) (119,613)
Expired (425) (622,088) (222) (101,868)
_____________________________________________________________
Balance June 30, 1995 -- $ -- -- $ --
_____________________________________________________________
<PAGE>
PAGE 50
New York Tax-Exempt
Year ended June 30, 1995
____________________________________________
Puts Calls
____________________________________________
Contracts Premium Contracts Premium
____________________________________________
Balance June 30, 1994 -- $ -- -- $ --
Opened 100 146,441 73 33,520
Exercised (100) (146,441) -- --
Expired -- -- (73) (33,520)
_____________________________________________________________
Balance June 30, 1995 -- $ -- -- $ --
_____________________________________________________________
Ohio Tax-Exempt
Year ended June 30, 1995
____________________________________________
Puts
____________________________________________
Contracts Premium
____________________________________________
Balance June 30, 1994 -- $ --
Opened 80 99,893
Exercised (40) (41,282)
Expired (40) (58,611)
____________________________________________
Balance June 30, 1995 -- $ --
____________________________________________
</TABLE>
6. Capital loss carryover
For federal income tax purposes, capital loss carryovers were
$471,391 for IDS Massachusetts, $1,233,720 for IDS Minnesota,
$670,740 for IDS New York and $210,685 for IDS Ohio tax-exempt
funds at June 30, 1995. These capital loss carryovers will expire
in 1997 through 2004 if not offset by subsequent capital gains. It
is unlikely the board of trustees will authorize a distribution of
any net realized capital gains for a fund until the respective
capital loss carryover has been offset or expires.
___________________________________________________________________
7. Financial highlights
"Financial highlights" showing per share data and selected
information are pesented on pages 8-13 of the prospectus.
<PAGE>
PAGE 51
<TABLE>
<CAPTION>
Investments in securities
IDS California Tax-Exempt Fund (Percentages represent value of
June 30, 1995 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (98.0%)
_____________________________________________________________________________________________________________________________
Name of issuer and Coupon Maturity Principal Value(a)
title of issue (b,c,d) rate year amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Aliso Viejo Orange County District Community Facilities District #88-1
Special Tax Bonds Series 1992A 7.35 % 2018 3,000,000 $ 3,511,500
Anaheim Public Finance Authority Revenue Bonds 2nd Series Electric Utilities
San Juan (FGIC Insured) 5.75 2022 11,100,000 10,571,418
Brea Redevelopment Agency Tax Allocation Refunding Bonds
Redevelopment Project AB (MBIA Insured) 5.50 2017 1,800,000 1,673,892
Burbank Redevelopment Agency Tax Allocation Bonds Golden State Series 1992A 6.00 2013 1,500,000 1,412,370
Burbank Redevelopment Agency Tax Allocation Bonds Golden State Series 1993A 6.00 2023 2,000,000 1,853,980
Calaveras County Water District Certificate of Participation
Refunding Revenue Bonds Water & Sewer System Improvement (AMBAC Insured) 5.25 2012 2,815,000 2,618,288
Chapman College Educational Facilities Authority Revenue Bonds
Series 1989B 7.50 2018 500,000 524,185
Chico Walker Senior Housing Insured Revenue Bonds The Lodge Series 1993A 5.70 2023 1,500,000 1,345,350
Clearlake Redevelopment Agency Highlands Park Community Development
Tax Allocation Bonds Series 1993 6.40 2023 1,420,000 1,352,309
Eastern Municipal Water District Riverside County Water & Sewer
Revenue Certificates of Participation Series 1991 6.00 2023 1,000,000 958,220
Eastern Municipal Water District Riverside County Water & Sewer
Pre-Refunded Revenue Certificates of Participation Series 1991
(FGIC Insured) 6.50 2020 3,000,000 3,336,660
Eden Township Hospital District Insured Health Facility Refunding Revenue
Certificate of Participation Series 1993 (California Mortgage Insured) 5.75 2012 3,000,000 2,787,900
El Camino Hospital District Hospital Pre-Refunded Revenue
Certificate of Participation Series A 8.50 2017 1,500,000 1,664,970
Fontana Redevelopment Agency Refunding Certificate of Participation
Police Facility Series 1993 5.625 2016 4,500,000 4,073,220
Fontana Unified School District Unlimited Tax General Oblgation Bonds
Zero Coupon Series C (FGIC Insured) 6.40 2020 3,470,000 (e) 3,088,300
Foothill-De Anza Community College Santa Clara County Refunding
Certificate of Participation Series 1993 (Connie Lee Insured) 5.25 2021 1,675,000 1,479,929
Foothill/Eastern Transportation Corridor Agency Toll Road
Senior Lien Revenue Bonds Series 1995A 6.00 2034 1,775,000 1,619,688
Fresno Sewer Non-callable Revenue Bonds Series A-1 (AMBAC Insured) 4.75 2021 1,240,000 1,019,023
Garden Grove Agency Community Development Tax Allocation Refunding Bonds
Garden Grove Community Project 5.875 2023 3,000,000 2,754,904
Garden Grove Certificate of Participation Bahia Village/Emerald Isle
(FSA Insured) 5.70 2023 2,660,000 2,487,233
Huntington Beach Certificate of Participation Revenue Bonds
Civic Center Refinancing (AMBAC Insured) 5.50 2016 1,715,000 1,607,195
Indian Wells Improvement Bonds Assessment District #13 7.50 2008 430,000 442,900
Long Beach Harbor Revenue Bonds AMT Series 1989A 7.25 2019 7,000,000 7,468,020
Los Angeles Convention & Exhibition Center Pre-Refunded
Certificate of Participation Series 1989A 7.00 2020 5,000,000 5,547,850
See accompanying notes to investments in securities.<PAGE>
PAGE 52
Los Angeles Convention & Exhibition Center Pre-Refunded
Certificate of Participation Series 1989A 7.30 2009 1,000,000 1,120,760
Los Angeles Convention & Exhibition Center Pre-Refunded
Certificate of Participation Series 1989A 7.375 2018 2,900,000 3,258,324
Los Angeles County Certificate of Participation Disney Parking 5.50 2021 1,625,000 1,429,058
Los Angeles County Transportation Commission Sales Tax Refunding
Revenue Bonds Series A 7.00 2019 4,150,000 4,450,170
Los Angeles County Transportation Commission Sales Tax Pre-Refunded
Revenue Bonds Series A 8.00 2016 2,000,000 2,187,820
Los Angeles County Transportation Commission Sales Tax Pre-Refunded
Revenue Bonds Series 1988A 7.875 2008 500,000 559,400
Los Angeles County Transportation Commission Sales Tax Refunding
Revenue Bonds Series 1989A 7.40 2015 2,000,000 2,190,580
Los Angeles Department of Water & Power Electric Plant Revenue Bonds
Series 1990 7.125 2030 6,500,000 7,237,555
Los Angeles Department of Water & Power Waterworks Refunding Revenue Bonds
Second Issue (Secondary FGIC Insured) 4.50 2018 3,000,000 2,408,760
Los Angeles Multi-family Housing Revenue Bonds AMT Park Parthenia
Series 1986A (GNMA Insured) 7.40 2022 1,000,000 1,041,580
Los Angeles Single Family Home Mortgage Revenue Bonds AMT Series 1991A
(GNMA & FNMA Insured) 6.875 2025 810,000 836,017
Los Angeles State Building Authority Lease Pre-Refunded Revenue Bonds
State Department of General Services Lease Series 1988A 7.25 2006 3,000,000 3,287,790
Los Angeles State Building Authority Lease Pre-Refunded Revenue Bonds
State Department of General Services Lease Series 1988A 7.50 2011 1,500,000 1,653,300
Los Angeles State Harbor Revenue Bonds Escrowed to Maturity 7.60 2018 1,000,000 1,095,000
Los Angeles Wastewater System Pre-Refunded Revenue Bonds Series 1987 8.125 2017 1,000,000 1,108,320
Los Angeles Wastewater System Refunding Revenue Bonds
Series D (FGIC Insured) 4.70 2017 1,000,000 833,560
Mayer Memorial Hospital District Insured Health Facility Revenue Bonds
(California Mortgage Insured) 5.50 2013 950,000 859,532
Modesto Certificate of Participation Pre-Refunded Bonds Community Center 8.10 2015 1,000,000 1,107,760
Modesto Irrigation Certificate of Participation 7.25 2015 2,000,000 2,090,960
Mount Diablo Hospital District Hospital Pre-Refunded Revenue Bonds
Series 1990A (AMBAC Insured) 7.00 2017 3,000,000 3,394,800
Northern California Public Power Authority Power Pre-Refunded Revenue Bonds
Hydroelectric Series 1986B-3 8.00 2024 2,000,000 2,214,100
Northern California Public Power Authority Power Pre-Refunded Revenue Bonds
Hydroelectric #1 Series 1986B-1 8.00 2024 2,100,000 2,324,805
Northern California Public Power Authority Refunding Revenue Bonds
Geothermal #3 Series 1985A 7.00 2010 830,000 830,075
Northern California Public Power Authority Refunding Revenue Bonds
Geothermal #3 Series 1987A 7.00 2007 6,825,000 7,013,916
Northern California Transmission Agency California-Oregon Transmission
Pre-Refunded Revenue Bonds Series 1990A (MBIA Insured) 7.00 2024 2,000,000 2,233,580
Northern California Transmission Select Auction Variable Rate
Security & Residual Interest Revenue Bonds Inverse Floater (MBIA Insured) 5.50 2024 2,500,000 (f) 2,319,700
Novato Community Facility District #1 Vintage Oaks Public Improvement
Special Tax Refunding Bonds 7.25 2021 2,000,000 2,022,560
Pleasanton Joint Powers Financing Authority Reassessment Revenue Bonds
Series 1993A 6.15 2012 1,950,000 1,897,428
Port of Oakland Revenue Bonds AMT Series 1989A (BIG Insured) 7.60 2016 500,000 533,840
Rancho Cucamonga Redevelopment Agency 1990 Tax Allocation Pre-Refunded Bonds
(MBIA Insured) 7.125 2019 3,540,000 3,962,534
Rancho Mirage Joint Powers Finance Authority Certificate of Participation
Eisenhower Memorial Hospital 7.00 2022 4,250,000 4,365,983
Redding Redevelopment Agency Tax Allocation Refunding Bonds
Canby Hilltop Cypress Series D (CGIC Insured) 5.00 2023 4,700,000 4,024,798
<PAGE>
PAGE 53
Sacramento Cogeneration Authority Cogeneration Revenue Bonds
Procter & Gamble Series 1995 6.375 2010 1,000,000 987,180
Sacramento Municipal Utility District Series R 6.00 2015-17 7,500,000 7,294,650
Sacramento Municipal Utility District Pre-Refunded Bonds Series V 7.50 2018 2,775,000 3,042,899
Sacramento Municipal Utility District Pre-Refunded Bonds Series W 7.50 2018 1,980,000 2,171,149
Sacramento Municipal Utility District Pre-Refunded Bonds Series Y
(MBIA Insured) 6.75 2019 3,400,000 3,833,976
San Bernadino County Certificate of Participation
Medical Center Financing Project Series A (MBIA Insured) 5.50 2022 2,000,000 1,839,280
San Diego County Capital Asset Lease Certificate of Participation
Series 1993 Inverse Floater (AMBAC Insured) 5.97 2007 3,200,000 (f) 3,216,000
San Diego Industrial Development Revenue Bonds San Diego Gas & Electric
Series A 7.625 2021 1,000,000 1,036,750
San Diego Regional Transportation Commission Sales Tax
Pre-Refunded Revenue Bonds Limited Tax Series 1989A 6.25 2008 5,030,000 5,348,198
San Francisco Bay Area Rapid Transmission District
Sales Tax Revenue Bonds (FGIC Insured) 5.50 2020 1,000,000 925,930
San Francisco City & County Certificate of Participation
San Francisco Courthouse Series 1995 (CGIC Insured) 5.60 2016 2,500,000 2,364,925
San Joaquin County Pre-Refunded Certificate of Participation
Human Services Facility Series 1989 (BIG Insured) 6.70 2009 3,500,000 3,842,790
San Joaquin County Certificate of Participation
Jail & Sheriffs Operation Center (MBIA Insured) 6.75 2015 2,000,000 2,218,120
San Jose Redevelopment Agency Merged Area Redevelopment Tax Allocation Bonds
Series 1993 (MBIA Insured) 4.75 2024 1,435,000 1,168,477
San Jose Redevelopment Agency Merged Area Tax Allocation Bonds
Series 1993 Inverse Floater (MBIA Insured) 5.591 2014 3,000,000 (f) 2,643,750
San Mateo County Transit District Limited Tax Pre-Refunded Bonds
Series 1990A (MBIA Insured) 6.50 2020 1,500,000 1,603,215
Santa Cruz Certificate of Participation 8.375 2007 1,220,000 1,298,544
Santa Rosa Sonoma County Wastewater Service Facility District
Pre-Refunded Improvement Bonds Series 1989 7.80 2015 1,000,000 1,090,180
Southern California Home Financing Authority Single Family Mortgage
Revenue Bonds AMT 1990B (GNMA Insured) 7.75 2024 575,000 606,849
Southern California Public Power Authority Transmission
Pre-Refunded Revenue Bonds Series 1986A 7.875 2018 1,500,000 1,603,515
Southern California Public Power Authority Transmission Special Bonds 5.858 2012 2,700,000 2,674,485
Southern California Public Power Authority Transportation Bonds Series B 7.375 2021 400,000 421,728
State Department Water Resources Water System Pre-Refunded Revenue Bonds
Central Valley Series D 7.70 2024 2,400,000 2,633,088
State Department Water Resource Water System Revenue Bonds
Central Valley Project Series L 5.50 2023 3,000,000 2,720,820
State Education Facility Authority Revenue Bonds Pomona College 6.00 2017 3,000,000 2,904,510
State Health Facility Finance Authority Pre-Refunded Revenue Bonds
St. Joseph Health System Series 1989A 6.90 2014 3,500,000 3,865,855
State Housing Finance Agency Home Mortgage Revenue Bonds Series 1986B 6.90 2016 1,990,000 2,046,416
State Pollution Control Finance Authority Pollution Control Revenue Bonds
AMT Southern California Edison Series 1988A 6.90 2006 2,000,000 2,107,200
State Public Works Board Lease Revenue Bonds California Community Colleges
Series 1994B 7.00 2019 2,000,000 2,113,680
State Public Works Board University of California Lease Pre-Refunded
Revenue Bonds Series 1990A 7.00 2015 2,250,000 2,535,727
State University Revenue Bonds San Jose State University Student Union
Series B 7.60 2007 150,000 157,600
State Unlimited Tax General Obligation Bonds
(Secondary FGIC Insured) 4.75 2023 2,500,000 2,045,523
<PAGE>
PAGE 54
Statewide Community Development Authority Certificate of Participation
Sutter Health Group (MBIA Insured) 5.50 2022 2,000,000 1,817,120
Statewide Community Development Authority Health Facilities Revenue Bonds
Unihealth America Series 1993A Inverse Floater (AMBAC Insured) 7.063 2011 5,000,000 (f) 4,687,500
Statewide Community Development Authority Revenue
Certificate of Participation Insured Health Facilities
Unihealth Series A (AMBAC Insured) 5.50 2014 1,750,000 1,635,550
Statewide Community Development Authority Revenue
Certificate of Participation St. Joseph Health System Group 6.50 2015 5,500,000 5,678,915
Stockton Single Family Mortgage Revenue Bonds AMT
Series 1990A (GNMA Insured) 7.50 2023 115,000 126,181
University of Southern California Educational Facilities Authority
Pre-Refunded Revenue Bonds Series 1989B 6.75 2015 5,000,000 5,245,550
Upland Certificate of Participation Water System Refunding Bonds
(FGIC Insured) 6.60 2016 1,000,000 1,056,820
Vacaville Limited Obligation Improvement Bonds
Water Rights Assessment District 8.00 2007 830,000 854,900
_____________________________________________________________________________________________________________________________
Total municipal bonds
(Cost: $220,918,920) $236,559,214
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $220,918,920)(g) $236,559,214
_____________________________________________________________________________________________________________________________
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 6-30-95 6-30-94
_____________________________________________________________________________
AAA 61% 63%
AA 16 18
A 19 16
BBB and below 4 3
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
BIG -- Bond Investors Guarantee
CGIC -- Capital Guaranty Insurance Company
FGIC -- Financial Guarantee Insurance Corporation
FNMA -- Federal National Mortgage Association
FSA -- Financial Security Assurance
GNMA -- Government National Mortgage Association
MBIA -- Municipal Bond Investors Assurance
(d) The following abbreviation is used in portfolio descriptions:
AMT -- Alternative Minimum Tax
(e) For zero coupon bonds, the interest rate disclosed represents the annualized effective yield
on the date of acquisition.<PAGE>
PAGE 55
(f) Inverse floaters represent securities that pay interest at a rate that increases (decreases) in the same
magnitude as, or in a multiple of, a decline (increase) in market short-term rates. Interest rate disclosed
is the rate in effect on June 30, 1995. Inverse floaters in the aggregate represent 4.4% of the fund's
net assets as of June 30, 1995.
(g) At June 30, 1995, the cost of securities for federal income tax purposes was $220,818,738
and the aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation $17,422,577
Unrealized depreciation (1,682,101)
______________________________________________________________________
Net unrealized appreciation $15,740,476
______________________________________________________________________
</TABLE>
<PAGE>
PAGE 56
<TABLE>
<CAPTION>
Investments in securities
IDS Massachusetts Tax-Exempt Fund (Percentages represent value of
June 30, 1995 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (96.3%)
_____________________________________________________________________________________________________________________________
Name of issuer and title of issue (b,c,d) Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Bay Transit Authority Series A (Secondary CGIC Insured) 5.50 % 2021 $ 500,000 $ 457,060
Bay Transportation Authority General Transportation System
Refunding Bonds Series 1992B 6.20 2016 1,500,000 1,538,700
Boston City Hospital Refunding Revenue Bonds Series B (FHA Insured) 5.75 2023 3,000,000 2,781,300
Boston City Hospital Pre-Refunded Revenue Bonds Series A (FHA Insured) 7.625 2021 1,000,000 1,139,660
Boston General Obligation Bonds Series 1991A (MBIA Insured) 6.75 2011 500,000 560,350
Boston General Obligation Refunding Bonds Series 1993A (AMBAC Insured) 5.65 2009 1,500,000 1,490,085
Boston Industrial Development Financing Authority Revenue Bonds
Massachusetts College of Pharmacy Series 1993A (Connie Lee Insured) 5.25 2026 1,000,000 871,860
Boston Water & Sewer Commission General Pre-Refunded Revenue Bonds
Senior Series 1991A (FGIC Insured) 7.00 2018 1,000,000 1,138,990
Boston Water & Sewer Commission General Subordinate Revenue Bonds Series A
(MBIA Insured) 6.00 2008 500,000 508,850
Boston Water & Sewer Commission Senior Revenue Bonds Series A 7.875 2013 365,000 388,466
Boston Water & Sewer Commission Senior Pre-Refunded Revenue Bonds Series A 7.875 2013 210,000 224,393
Commonwealth General Obligation Consolidated Loan Pre-Refunded Bonds
Series 1990A (FGIC Insured) 7.25 2009 500,000 562,245
Greater Lawrence Sanitary District North Andover General Obligation Bonds 8.50 2005 570,000 588,787
Health & Educational Facilities Authority Refunding Revenue Bonds
Beth Israel Hospital Series 1989E 7.00 2009-14 550,000 582,438
Health & Educational Facilities Authority Revenue Bonds
Berkshire Health Systems Series A (MBIA Insured) 7.50 2008 500,000 557,555
Health & Educational Facilities Authority Revenue Bonds
Berkshire Health Systems Series C 5.90 2011 1,000,000 872,160
Health & Educational Facilities Authority Pre-Refunded Revenue Bonds
Beverly Hospital Series D (MBIA Insured) 7.30 2019 400,000 447,616
Health & Educational Facilities Authority Revenue Bonds
Boston College Series J (FGIC Insured) 6.625 2021 2,000,000 2,104,460
Health & Educational Facilities Authority Revenue Bonds
Boston College Series K 5.25 2023 1,000,000 878,150
Health & Educational Facilities Authority Revenue Bonds
Brigham & Women's Hospital Series C 6.75 2021 500,000 515,285
Health & Educational Facilities Authority Revenue Bonds
Brigham & Women's Hospital Series 1991D 6.75 2024 1,000,000 1,031,100
Health & Educational Facilities Authority Revenue Bonds
Cape Cod Health System Series A (Connie Lee Insured) 5.25 2021 2,500,000 2,215,375
Health & Educational Facilities Authority Revenue Bonds
Charlton Memorial Hospital Series 1991B 7.25 2013 1,750,000 1,825,373
Health & Educational Facilities Authority Revenue Bonds
Holyoke Hospital Series B 6.50 2015 500,000 467,695
See accompanying notes to investments in securities.
<PAGE>
PAGE 57
Health & Educational Facilities Authority Pre-Refunded Revenue Bonds
Lahey Clinic Medical Center Series A (MBIA Insured) 7.625 2018 500,000 555,910
Health & Educational Facilities Authority Revenue Bonds
Lahey Clinic Medical Center Series B (MBIA Insured) 5.625 2015 1,500,000 1,424,910
Health & Educational Facilities Authority Revenue Bonds
Melrose-Wakefield Hospital Series 1992B 6.375 2016 1,000,000 977,940
Health & Educational Facilities Authority Revenue Bonds
Morton Hospital & Medical Center Series B (Connie Lee Insured) 5.25 2014 1,000,000 907,220
Health & Educational Facilities Authority Pre-Refunded Revenue Bonds
Mount Auburn Hospital Series A (MBIA Insured) 7.875 2018 205,000 229,354
Health & Educational Facilities Authority Revenue Bonds
New England Deaconess Hospital Series 1992D 6.625 2012 1,000,000 1,010,760
Health & Educational Facilities Authority Revenue Bonds
Newton Wellesley Hospital Series 1991D (MBIA Insured) 7.00 2015 1,000,000 1,079,600
Health & Educational Facilities Authority Pre-Refunded Revenue Bonds
Northeastern University Series 1989C (AMBAC Insured) 7.10 2006 1,000,000 1,098,540
Health & Educational Facilities Authority Pre-Refunded Revenue Bonds
Northeastern University Series E (MBIA Insured) 6.55 2022 1,000,000 1,058,150
Health & Educational Facilities Authority Revenue Bonds
South Shore Hospital Series 1992D (MBIA Insured) 6.50 2022 1,000,000 1,032,980
Health & Educational Facilities Authority Pre-Refunded Revenue Bonds
Stonehill College Series 1990D (AMBAC Insured) 7.70 2020 1,000,000 1,151,110
Health & Educational Facilities Authority Revenue Bonds
Suffolk University Series B (Connie Lee Insured) 6.35 2022 2,495,000 2,523,942
Health & Educational Facilities Authority Pre-Refunded Revenue Bonds
Wentworth Institute of Technology Series A (AMBAC Insured) 7.40 2010 750,000 849,360
Health & Educational Facilities Authority Revenue Bonds
Valley Regional Health System Series C (Connie Lee Insured) 5.75 2018 1,000,000 931,340
Health & Educational Facilities Authority Revenue Bonds
Wentworth Institute of Technology Series B (Connie Lee Insured) 5.50 2023 1,500,000 1,358,805
Industrial Finance Agency 1st Mortgage Pre-Refunded Revenue Bonds
Berkshire Retirement Community at Lennox 9.875 2018 200,000 218,954
Industrial Finance Agency Pollution Control Refunding Revenue Bonds
Eastern Edison Series 1993 5.875 2008 1,500,000 1,444,920
Industrial Finance Agency Resource Recovery Revenue Bonds AMT
Ogden Haverhill Series 1986A (AMBAC Insured) 7.375 2011 175,000 183,615
Industrial Finance Agency Resource Recovery Revenue Bonds
SEMASS Series 1991A 9.00 2015 1,500,000 1,631,520
Industrial Finance Agency Revenue Bonds Museum of Science Series 1989
(FSA Insured) 7.30 2009 1,000,000 1,126,430
Leominster General Obligation Bonds (MBIA Insured) 7.50 2009 1,000,000 1,136,710
Lowell Limited Tax General Obligation State Qualified Refunding Bonds
Series A (FSA Insured) 5.50 2010 800,000 773,560
Mansfield General Obligation Bonds (AMBAC Insured) 6.70 2011 1,000,000 1,071,750
Municipal Wholesale Electric Power Supply System Pre-Refunded Revenue Bonds
Series 1992B 6.75 2017 1,395,000 1,584,120
Municipal Wholesale Electric Power Supply System Refunding Revenue Bonds
Series B (MBIA Insured) 4.75 2011 1,750,000 1,536,798
Municipal Wholesale Electric Power Supply System Revenue Bonds
Special Pars & Inflows (AMBAC Insured) 5.31 2018 1,600,000 1,494,768
Nantucket General Obligation Bonds 6.80 2011 1,000,000 1,067,870
North Andover General Obligation Bonds (MBIA Insured) 7.35 2008 310,000 349,906
Port Authority Revenue Bonds AMT Series 1988A 7.75 2018 515,000 525,352
Port Authority Revenue Bonds AMT Series 1990A (FGIC Insured) 7.50 2020 1,000,000 1,094,340
Quincy Refunding Revenue Bonds Quincy Hospital Series 1993
(FSA Insured) 5.25 2016 1,000,000 904,420
<PAGE>
PAGE 58
Southeastern University Building Authority Refunding Revenue Bonds
Series 1986A 7.80 2016 100,000 105,173
Southeastern University Building Refunding Revenue Bonds Series A
(AMBAC Insured) 5.75 2016 1,250,000 1,204,688
Southeastern University Building Revenue Bonds 7.80 2011 325,000 341,812
Southern Berkshire Regional School District Unlimited Tax
General Obligation Pre-Refunded Bonds (AMBAC Insured) 7.55 2010 1,000,000 1,139,680
State College Building Authority Pre-Refunded Revenue Bonds Series 1986A 7.125 2006 150,000 156,987
State College Building Authority Pre-Refunded Revenue Bonds Series 1986A 7.25 2016 250,000 261,897
State General Obligation Consolidated Loan Bonds Series 1991A
(FGIC Insured) 6.00 2011 1,095,000 1,104,680
State Housing Finance Agency Single Family Housing Revenue Bonds AMT
Series 13 7.95 2023 500,000 534,110
State Housing Finance Authority Residential Development Bonds Series 1992A
(FNMA Insured) 6.875 2011 1,000,000 1,055,930
State Housing Finance Authority Single Family Mortgage Housing
Revenue Bonds Series 4 7.375 2014 445,000 466,591
State Housing Finance Authority Single Family Mortgage Housing
Revenue Bonds AMT Series 7 8.10 2020 255,000 272,368
State Water Resource Authority Revenue Bonds Series A
(Secondary MBIA Insured) 5.50 2022 1,100,000 1,011,703
University of Lowell Building Authority Facilities Revenue Bonds
4th Series A 7.40 2007 125,000 135,174
University of Lowell Building Authority Facilities Revenue Bonds
4th Series A 7.60 2012 50,000 54,149
University of Massachusetts Building Authority Revenue Bonds Series A
(FSA Insured) 7.50 2014 500,000 544,680
University of Massachusetts Building Authority Revenue Bonds Series A
Escrowed to Maturity 7.50 2011 120,000 132,877
Water Resource Authority General Pre-Refunded Revenue Bonds Series 1990A 7.625 2014 500,000 570,985
Water Resource Authority General Pre-Refunded Revenue Bonds Series 1991A 6.50 2019 1,000,000 1,112,940
Water Resource Authority General Revenue Bonds Series 1993C 5.25 2020 1,400,000 1,229,200
_____________________________________________________________________________________________________________________________
Total municipal bonds
(Cost: $64,462,696) $67,518,531
_____________________________________________________________________________________________________________________________
</TABLE>
<TABLE>
<CAPTION>
Short-term security (1.0%)
_____________________________________________________________________________________________________________________________
Issuer (d,e) Effective Amount Value(a)
yield payable at
maturity
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
Municipal note
State General Obligation V.R.D.B. Series B
12-01-97 4.20% $700,000 $ 700,000
_____________________________________________________________________________________________________________________________
Total short-term security
(Cost: $700,000) 700,000
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $65,162,696)(f) $68,218,531
___________________________________________________________________________________________________________________________
<PAGE>
PAGE 59
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 06-30-95 06-30-94
_______________________________________________________________________________________________________
AAA 65% 64%
AA 11 12
A 17 17
BBB and below 7 7
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
CGIC -- Capital Guaranty Insurance Company
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 abbreviations are used in portfolio descriptions:
AMT -- Alternative Minimum Tax
V.R.D.B. -- Variable Rate Demand Bond
(e) Interest rate varies to reflect current market conditions; rate shown is the effective rate
on June 30, 1995.
(f) At June 30, 1995, the cost of securities for federal income tax purposes was
$65,175,338 and the aggregate gross unrealized appreciation and depreciation based
on that cost was:
Unrealized appreciation $3,874,845
Unrealized depreciation (831,652)
_______________________________________________________________________________________________________
Net unrealized appreciation $3,043,193
_______________________________________________________________________________________________________
</TABLE>
<PAGE>
PAGE 60
<TABLE>
<CAPTION>
Investments in securities
IDS Michigan Tax-Exempt Fund (Percentages represent value of
June 30, 1995 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (97.6%)
_____________________________________________________________________________________________________________________________
Name of issuer and Coupon Maturity Principal Value(a)
title of issue (b,c,d) rate year amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Auburn Hills Limited Tax General Obligation Street Improvement Bonds 6.00 % 2004 $ 200,000 $ 207,824
Battle Creek Calhoun County Downtown Development Authority Bonds
Series 1994 7.65 2022 1,250,000 1,330,362
Battle Creek Water Supply System Pre-Refunded Revenue Bonds Series 1990B 6.375 2008-10 1,640,000 1,767,330
Berkley School District Unlimited Tax General Obligation Bonds
County of Oakland School Building and Site Bonds Series 1995 (FGIC Insured)5.625 2015 1,210,000 1,155,562
Buena Vista School District Saginaw County School Building & Site
Unlimited Tax General Obligation Pre-Refunded Bonds Series 1991 7.20 2016 1,500,000 1,704,765
Caledonia Community School Unlimited Tax General Obligation
Refunding Revenue Bonds (AMBAC Insured) 5.50 2022 2,000,000 1,862,200
Cedar Springs School District Unlimited Tax
General Obligation Bonds (MBIA Insured) 5.875 2024 1,000,000 966,250
Charter Township of Redford Limited Tax General Obligation Bonds
County of Wayne Series 1995 (MBIA Insured) 5.25 2016 1,450,000 1,334,638
Chassell Township Schools County of Houghton Refunding Unlimited Tax
General Obligation Bonds Qualified School Bond Loan Fund 5.25 2020 1,045,000 935,703
Chelsea General Obligation Bonds (BIG Insured) 8.20 2006 145,000 161,539
Chippewa Valley School Macomb County Qualified School Building Loan Fund
Unlimited Tax General Obligation Bonds (FGIC Insured) 5.00 2021 1,000,000 868,240
Comstock Park Public School Kent County Unlimited Tax
General Obligation Pre-Refunded Bonds Series 1989 6.00 2016 400,000 429,104
Comstock Park Public School Kent County Unlimited Tax
General Obligation Pre-Refunded Bonds Series 1989 6.875 2010 260,000 286,863
Detroit General Obligation Pre-Refunded Bonds Distributable State Aid
Series 1989 (AMBAC Insured) 7.20 2009 1,000,000 1,111,670
Detroit Sewer Disposal Pre-Refunded Revenue Bonds 8.00 2008 500,000 545,325
Detroit Unlimited Tax General Obligation Bonds Series A 7.25 2009 1,000,000 1,037,330
Detroit Unlimited Tax General Obligation Bonds Series A 8.625 2007 100,000 106,582
Detroit Unlimited Tax General Obligation Bonds Series 1988A 7.875 2008 700,000 738,458
Detroit Water Supply System Pre-Refunded Revenue Bonds
Series 1988 (MBIA Insured) 7.875 2008 400,000 447,520
Detroit Water Supply System Refunding Revenue Bonds
Series 1993 (FGIC Insured) 5.00 2023 1,000,000 857,940
Dexter Community Schools Building Site & Refunding Unlimited Tax
General Obligation Bonds 5.00 2017 1,500,000 1,295,715
East Lansing School District School Building & Site Unlimited Tax
General Obligation Bonds Series 1991 6.625 2014 1,000,000 1,052,550
Eastern Michigan University Pre-Refunded Revenue Bonds Residence Hall 7.80 2006 205,000 216,304
Eaton County Water System Limited Tax General Obligation Bonds (MBIA Insured)5.00 2013 2,200,000 1,974,214
Farmington Hills Hospital Finance Authority Revenue Bonds
Botsford General Hospital Series 1992A (MBIA Insured) 6.50 2022 1,500,000 1,554,900
Forest Hills School District Unlimited Tax General Obligation
Pre-Refunded Bonds 7.375 2015 1,000,000 1,123,320
See accompanying notes to investments in securities.<PAGE>
PAGE 61
Frenchtown Resort Drainage District Monroe County Drain
Pre-Refunded Bonds Series 1987 7.50 2011-12 615,000 687,109
Garden City School District Authority Pre-Refunded Revenue Bonds 7.80 2010 305,000 341,383
Grand Rapids Tax Increment Revenue Bonds Series 1994 (MBIA Insured) 6.875 2024 380,000 410,286
Grand Rapids Water Supply System Improvement
Pre-Refunded Revenue Bonds Series 1988 7.875 2018 700,000 772,947
Grand Rapids Water Supply System Improvement Pre-Refunded Revenue Bonds
Series 1990 (FGIC Insured) 7.25 2020 1,250,000 1,401,537
Hesperia Community Schools General Obligation Bonds (MBIA Insured) 5.625 2017 1,280,000 1,188,134
Inkster School District Unlimited Tax General Obligation
Pre-Refunded Bonds (AMBAC Insured) 7.00 2018 450,000 500,899
Isoco County Water Supply System Limited Tax General Obligation Bonds
(AMBAC Insured) 5.50 2008-10 575,000 562,347
Jackson County Unlimited Tax General Obligation Refunding Bonds
Series 1987 6.75 2011 150,000 159,357
Kent County Airport Revenue Bonds AMT 5.85 2011 875,000 849,004
Kent County Hospital Pre-Refunded Revenue Bonds Butterworth Hospital
Series 1989A 7.25 2013 500,000 553,420
Kent County Refuse Disposal System Limited Tax
General Obligation Refunding Bonds Series 1987 8.40 2010 150,000 164,134
Lake Orion School District General Obligation Bonds (AMBAC Insured) 5.50 2020 1,000,000 927,250
Livonia Public School District General Obligation
Refunding Bonds (FGIC Insured) 5.50 2021 1,500,000 1,400,115
Marquette Hospital Finance Authority Refunding Revenue Bonds
Marquette General Hospital Series 1989C 7.50 2007-19 825,000 892,765
Mona Shores Public Schools Unlimited Tax General Obligation Bonds
County of Muskegon
School Building & Site Bonds Series 1995 (FGIC Insured) 5.50 2014 1,000,000 946,080
Monroe County Pollution Control Revenue Bonds AMT Detroit Edison
Fermi Plants Series 1990I (FGIC Insured) 7.65 2020 1,000,000 1,114,940
Monroe County Pollution Control Revenue Bonds AMT Detroit Edison
Fermi 2 Plants Series CC (AMBAC Insured) 7.50 2019 1,750,000 1,936,060
Muskegon Hospital Finance Authority Refunding Revenue Bonds Hackley Hospital
Series 1988A 8.00 2008 400,000 436,832
Northville Public Schools Unlimited Tax General Obligation Bonds
Series 1991B 7.00 2008 1,500,000 1,624,920
Richmond Limited Obligation Refunding Revenue Bonds Kmart Series A 6.625 2007 530,000 535,141
Rochester Hill Unlimited Tax General Obligation Bonds Series 1990A 6.00 2009-10 735,000 744,403
Rockford Public Schools Kent County Unlimited Tax
General Obligation Pre-Refunded Bonds 7.375 2019 1,000,000 1,123,320
Romulus Township School District Unlimited Tax General Obligation
Refunding Bonds (FGIC Insured) 5.75 2022 2,500,000 2,384,875
Sandusky County School District General Obligation
Refunding Bonds (AMBAC Insured) 5.25 2021 500,000 450,415
South Lake District Unlimited Tax General Obligation Bonds 6.80 2010 355,000 378,324
State Building Authority Refunding Revenue Bonds Series 1991I 6.25 2020 2,200,000 2,180,420
State Hospital Finance Authority Hospital Pre-Refunded Revenue Bonds
Detroit Medical Center Series 1988A 8.125 2012 310,000 348,952
State Hospital Finance Authority Hospital Refunding Revenue Bonds
Detroit Medical Center Series A 6.25 2013 1,200,000 1,183,248
State Hospital Finance Authority Hospital Refunding Revenue Bonds
Detroit Medical Center Series 1988A 8.125 2012 90,000 99,391
State Hospital Finance Authority Hospital Refunding Revenue Bonds
Detroit Medical Center Series 1988B 8.00 2008 500,000 561,015
State Hospital Finance Authority Hospital Refunding Revenue Bonds
Sisters of Mercy Health Group Series 1993P (MBIA Insured) 5.25 2021 1,200,000 1,057,536
State Hospital Finance Authority Hospital Pre-Refunded Revenue Bonds
McLaren Obligated Group Series 1991A 7.50 2021 1,750,000 2,036,195
<PAGE>
PAGE 62
State Hospital Finance Authority Revenue Bonds Henry Ford Hospital
Series 1990A 7.00 2010 1,000,000 1,067,850
State Hospital Finance Authority Revenue Bonds Henry Ford Hospital
Series 1992A 5.75 2017 1,500,000 1,432,095
State Hospital Finance Authority Pre-Refunded Revenue Bonds
Oakwood Hospital Group Series 1990A (FGIC Insured) 7.10 2018 1,000,000 1,124,600
State Housing Development Authority Rental Housing
Refunding Revenue Bonds Series B 5.70 2012 2,500,000 2,388,100
State Public Power Agency Belle River Refunding Revenue Bonds
Series A 5.25 2018 1,000,000 896,690
State Strategic Fund Limited Tax Obligation Refunding Revenue Bonds
Detroit Edison Series 1990BB (MBIA Insured) 7.00 2008 1,000,000 1,133,300
State Strategic Fund Limited Tax Obligation Refunding Revenue Bonds
Detroit Edison Series 1992BB (FGIC Insured) 6.50 2016 1,500,000 1,567,350
State Strategic Fund Limited Tax Obligation Refunding Revenue Bonds
Ford Motor Series 1991A 7.10 2006 1,650,000 1,790,613
State Strategic Fund Limited Tax Obligation Refunding Revenue Bonds
Escrowed to Maturity Oxford Institute 7.875 2005 150,000 173,697
State Strategic Fund Limited Tax Obligation Revenue Bonds
Great Lakes Pulp & Fibre 10.25 2016 1,000,000 1,057,870
State Trunk Line Bonds Series A (FGIC Insured) 5.75 2020 1,065,000 1,015,776
State University Revenue Bonds Series A 5.50 2022 560,000 509,477
State University Revenue Parking System Pre-Refunded Bonds
Ann Arbor Campus Series A 7.40 2015 150,000 157,751
Taylor Tax Increment Finance Authority Bonds Series 1989A (MBIA Insured) 6.00 2007-09 1,205,000 1,229,859
Troy City Downtown Development Authority County of Oakland
Development Bonds Series 1995A (Asset Guaranty) 6.375 2018 1,500,000 1,466,880
Van Buren Township Tax Increment Revenue Bonds Series 1994 8.40 2016 1,000,000 1,073,710
Warren Consolidated School District Refunding Revenue Bonds
Unlimited Tax General Obligation Bonds (MBIA Insured) 5.50 2021 1,500,000 1,400,115
Waterford School District Unlimited Tax General Obligation Bonds
Series Q 6.25 2013 340,000 349,850
Wayne County Airport Revenue Bonds AMT Detroit Metropolitan Airport
Series 1986 (FGIC Insured) 8.00 2014 250,000 266,208
Wayne County Airport Revenue Bonds AMT Detroit Metropolitan Airport
Series 1990A (AMBAC Insured) 7.00 2020 1,080,000 1,147,176
Wyandotte Electric Pre-Refunded Revenue Bonds Series 1987 (AMBAC Insured) 7.875 2017 300,000 329,406
_____________________________________________________________________________________________________________________________
Total municipal bonds
(Cost: $72,149,708) $76,603,335
_____________________________________________________________________________________________________________________________
/TABLE
<PAGE>
PAGE 63
<TABLE>
<CAPTION>
Short-term security (0.8%)
_____________________________________________________________________________________________________________________________
Issuer (e) Effective Amount Value(a)
yield payable
at
maturity
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
Municipal notes
Regents of the University of Michigan Hospital
Refunding Revenue Bonds Series 1992A
12-01-19 4.20% $100,000 $ 100,000
12-01-27 4.20 500,000 500,000
_____________________________________________________________________________________________________________________________
Total short-term security
(Cost: $600,000) $ 600,000
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $72,749,708)(f) $77,203,335
_____________________________________________________________________________________________________________________________
_____________________________________________________________________________________________________________________________
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 06-30-95 06-30-94
______________________________________________________________________________________________________
AAA 65% 65%
AA 17 25
A 10 6
BBB and below 8 4
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
BIG -- Bond Investors Guarantee
FGIC -- Financial Guarantee Insurance Corporation
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, 1995.<PAGE>
PAGE 64
(f) At June 30, 1995, the cost of securities for federal income tax purposes was $72,717,168
and the aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation $5,049,984
Unrealized depreciation (563,817)
__________________________________________________________________________
Net unrealized appreciation $4,486,167
__________________________________________________________________________
</TABLE>
<PAGE>
PAGE 65
<TABLE>
<CAPTION>
Investments in securities (Percentages represent
IDS Minnesota Tax-Exempt Fund value of investments
June 30, 1995 compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (98.0%)
_____________________________________________________________________________________________________________________________
Name of issuer and Coupon Maturity Principal Value(a)
title of issue (b,c,d) rate year amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Anoka County General Obligation Capital Improvement Revenue Bonds
Series 1989B 7.00 % 2007-10 $ 7,950,000 $ 8,519,458
Anoka County Resource Recovery Revenue Bonds Northern States Power
Series 1985 7.15 2008 3,750,000 4,016,625
Apple Valley Certificate of Participation Lease Pre-Refunded Bonds
Central Garage Facility Financial Agreement 7.25 2001 155,000 161,832
Apple Valley Certificate of Participation Lease Pre-Refunded Bonds
Central Garage Facility Financial Agreement 7.30 2002 175,000 182,831
Apple Valley Certificate of Participation Lease Pre-Refunded Bonds
Central Garage Facility Financial Agreement 7.40 2003 190,000 198,765
Apple Valley Certificate of Participation Lease Pre-Refunded Bonds
Central Garage Facility Financial Agreement 7.50 2004 450,000 471,375
Appleton Correctional Facility Revenue Bonds Series 1990A 9.875 2020 4,000,000 (e) 2,000,000
Becker Pollution Control Revenue Bonds Northern States Power
Sherburne County Generating Station Units 1 & 2 Series 1987A 7.25 2005 2,000,000 2,047,380
Becker Solid Waste Disposal Facility
Revenue Bonds AMT Liberty Paper Series 1994B 9.00 2015 3,825,000 3,893,620
Bemidji Hospital Facilities 1st Mortgage Revenue Bonds
North Country Health Services Series 1991 7.00 2021 1,755,000 1,843,715
Bloomington Community Development Refunding Revenue Bonds
Note 24th Avenue Motel 8.50 2005 1,828,116 1,864,679
Braham Independent School District #314 Refunding Bonds 5.20 2019 3,340,000 2,993,275
Brooklyn Park Tax Credit Investor Revenue Bonds AMT
Four Courts Apartment Project Series 1995B 7.58 2009 2,450,000 2,440,396
Burnsville Multi-family Housing Refunding Revenue Bonds
FHA-Summit Park Apartments Series 1993 6.00 2033 4,000,000 3,827,520
Chaska Advance Refunded Certificate of Participation
Lease Purchase Agreement Bonds Series 1986C 7.25 2001 800,000 825,784
Columbia Heights Multi-family Housing Revenue Bonds
Crestview Lutheran Home Royce Place Series 1991 10.00 2032 560,000 597,744
Columbia Heights Multi-family Housing Revenue Bonds
Crestview Lutheran Home Royce Place Series 1991 (FHA Insured) 7.75 2032 2,745,000 2,891,803
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 2,339,880
Duluth Hospital Facilities St. Lukes Hospital
Pre-Refunded Revenue Bonds Series 1988 9.00 2018 2,500,000 2,860,425
Duluth Housing and Redevelopment Authority 1st Mortgage Revenue Bonds
Lakeshore Lutheran Home 8.25 2009 125,000 123,724
Duluth Recreation Revenue Certificate of Participation 9.00 2003-07 1,430,000 1,520,238
Eden Prairie Housing Development Refunding Revenue Bonds Eden Commons
Series 1990 (FHA Insured) 8.25 2025 6,360,000 6,471,364
Edina Hospital System Revenue Bonds Fairview Hospital & Health Care Services
Series 1989A 7.125 2019 2,500,000 2,647,425
See accompanying notes to investments in securities.<PAGE>
PAGE 66
Edina Multi-family Housing Revenue Bonds Walker Assisted Living
Series 1991 9.00 2031 6,700,000 7,312,112
Faribault Rice & Goodhue County Independent School District #656
General Obligation School Building Bonds Series 1995 (CGIC Insured) 5.75 2015 6,900,000 6,755,514
Faribault Single Family Mortgage Refunding Revenue Bonds Series 1991A 7.50 2011 2,710,000 2,894,876
Hennepin County Lease Revenue Certificate of Participation Series 1991 6.80 2017 7,250,000 7,718,495
Hennepin County Solid Waste Resource Recovery General Obligation
Revenue Bonds Series 1987A 8.20 2009 1,760,000 1,833,709
Hopkins Revenue Bonds Blake School 6.70 2024 3,120,000 3,267,482
Hubbard County Solid Waste Disposal Revenue Bonds AMT Potlatch Series 1989 7.375 2013 5,610,000 5,967,413
International Falls Solid Waste Disposal Revenue Bonds AMT Boise Cascade
Series 1990 7.75 2015 4,000,000 4,154,600
Maplewood Care Institute Series 1994 7.75 2024 3,830,000 3,775,882
Maplewood Multi-family Housing Revenue Bonds Maplewood (FHA Insured) 7.75 2021 2,115,000 2,126,040
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 4,251,448
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 1,570,707
Minneapolis Health Care Facilities Revenue Bonds Fairview Hospital &
Healthcare Services Series 1993A (MBIA Insured) 5.25 2019 5,315,000 4,794,874
Minneapolis Hospital Facility Pre-Refunded Revenue Bonds Lifespan Incorporated
Series 1987A 8.125 2017 3,630,000 3,944,503
Minneapolis Hospital Facility Pre-Refunded Revenue Bonds Lifespan Incorporated
Series 1989A 7.00 2014 5,000,000 5,582,050
Minneapolis Housing & Redevelopment Authority of St. Paul
Health Care System Revenue Bonds Healthspan Series 1993 (AMBAC Insured) 4.75 2018 12,000,000 10,034,280
Minneapolis Nursing Home Revenue Bonds Walker Cityview & Southview
Series 1992 8.50 2022 5,565,000 5,808,524
Minneapolis St. Paul Housing & Redevelopment Authority Health Care System
Revenue Bonds Healthspan Series 1993A (AMBAC Insured) 5.00 2007-13 5,690,000 5,290,850
Minneapolis Water & Sewer Revenue Bonds Series 1992 5.00 1995 5,000,000 5,024,450
Minnetonka Multi-family Housing Refunding Revenue Bonds Cedar Hill West
(FHA Insured) 7.75 2026 5,585,000 5,755,454
Minnetonka Multi-family Housing Revenue Bonds The Cedar Hills Series 1985 7.50 2017 500,000 531,805
Montevideo Independent School District #129 General Obligation
Unlimited Tax Bonds School Credit Enhancement Program 4.90 2014 1,875,000 1,647,581
New Brighton Tax Credit Investor Revenue Bonds AMT
Polynesian VIllage Apartments Series 1995B 7.75 2009 2,355,000 2,379,162
Northern Municipal Power Agency Electric System Refunding Revenue Bonds
Series 1989A 7.25 2016 5,475,000 5,932,874
Northern Municipal Power Agency Electric System Pre-Refunded Revenue Bonds
Series 1989A (AMBAC Insured) 7.40 2018 1,000,000 1,110,800
Northern Municipal Power Agency Electric System Pre-Refunded Revenue Bonds
Series 1989B (AMBAC Insured) 7.40 2018 1,800,000 1,981,062
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 1,198,220
Osseo Area Schools Independent School District #279 General Obligation
School Building Bonds 5.40 2010-12 9,750,000 9,299,028
Owatanna Public Utilities Pre-Refunded Revenue Bonds Series 1991 6.75 2016 1,000,000 1,095,850
Plymouth Multi-family Housing Revenue Bonds AMT Harbor Lane Apartments
Series 1993 (Asset Guaranty Insured) 5.90 2013 2,325,000 2,267,851
Port Authority St. Paul General Obligation Bonds Series 1994 5.125 2017 2,885,000 2,587,268
Port Authority St. Paul Unlimited Tax General Obligation Bonds 5.125 2024 2,770,000 2,429,678
Red Wing Industrial Development Refunding Revenue Bonds K mart Series 1993 5.50 2008 400,000 370,200
Richfield Independent School District #280 Unlimited Tax General Obligation
School Building Bonds Series 1993C Inverse Floater
(FGIC Insured) 5.975 2010 3,300,000 (f) 3,089,625
<PAGE>
PAGE 67
Richfield Independent School District #280 Unlimited Tax General Obligation
School Building Bonds Series 1993C Trust Inverse Floater
(FGIC Insured) 6.075 2012 2,510,000 (f) 2,328,025
Robbinsdale Hospital Pre-Refunded Revenue Bonds
North Memorial Medical Center Series 1989 (AMBAC Insured) 7.375 2019 2,200,000 2,442,022
Rochester Health Care Facility Revenue Bonds Mayo Foundation Series A 4.951 2019 5,000,000 4,367,150
Rochester Multi-family Housing Development Revenue Bonds Civic Square
Series 1991 (FHA Insured) 7.45 2031 4,450,000 4,691,902
Roseville Health Care Facility Refunding Revenue Bonds
Presbyterian Homes of Minnesota Series 1987 7.50 2007 2,250,000 2,338,425
Rush City Independent School District #139 Unlimited Tax School Building
Refunding Bonds School Credit Enhancement Program 5.25 2018 2,595,000 2,416,386
St. Cloud Hospital Facilities Revenue Bonds St. Cloud Hospital Series 1990B
(AMBAC Insured) 7.00 2020 5,000,000 5,668,250
St. Cloud Hospital Facility Refunding Revenue Bonds Series C (AMBAC Insured) 5.30 2020 1,515,000 1,372,332
St. Cloud Hospital Refunding Revenue Bonds Series 1993C (AMBAC Insured) 5.25 2013 1,000,000 923,640
St. Cloud Hydro Electric Generation Facility Gross Revenue Bonds Series 1986 7.375 2018 1,100,000 1,153,042
St. Louis Park Health Care Facilities Revenue Bonds
Healthsystem Minnesota Obligated Group Series 1993 (AMBAC Insured) 5.20 2023 6,000,000 5,330,460
St. Louis Park Health Care Facilities Revenue Bonds
Healthsystem Minnesota Obligated Group Series 1993A (AMBAC Insured) 5.20 2016 3,000,000 2,725,500
St. Louis Park Health Care Facilities Revenue Bonds
Healthsystem Minnesota Obligated Group Series 1993B
Inverse Floater (AMBAC Insured) 5.575 2013 7,000,000 (f) 5,810,000
St. Louis Park Health Care Facilities Pre-Refunded Revenue Bonds
Park Nicollet Medical Center Series 1990A 9.25 2020 4,000,000 4,803,040
St. Louis Park Health Care Facilities Pre-Refunded Revenue Bonds
Park Nicollet Medical Center Series 1991A 8.625 2021 2,000,000 2,374,620
St. Louis Park Multi-family Rental Housing Revenue Bonds
Mortgage Loan-Community Housing & Services Series 1985 (FHA Insured) 7.375 2028 2,250,000 2,337,008
St. Paul & Minneapolis Housing & Redevelopment Authority Health Care
Facility Revenue Bonds Group Health Plan Series 1992 6.75 2013 10,500,000 10,906,665
St. Paul Housing & Development Bonds Highland Retirement (FHA Insured) 7.013 2026 5,210,000 4,897,400
St. Paul Housing & Redevelopment Authority Hospital Facility Revenue Bonds
St. Paul Ramsey Medical Center (AMBAC Insured) 5.55 2023 5,000,000 4,677,500
St. Paul Housing & Redevelopment Authority Commercial Development
Refunding Revenue Bonds Beverly Enterprises Series 1992 7.75 2002 2,700,000 2,801,547
St. Paul Housing & Redevelopment Authority Health Care Facility Revenue Bonds
Lyngblomsten Care Center Series 1993A 7.125 2017 1,945,000 1,935,042
St. Paul Housing & Redevelopment Authority Health Care Facility Revenue Bonds
Lyngblomsten Care Center Series 1993A 9.60 2006 1,060,000 1,118,258
St. Paul Housing & Redevelopment Authority Health Care Facility
Multi-family Rental Housing Revenue Bonds Lynblomsten 1993B 7.00 2024 1,930,000 1,857,837
St. Paul Housing & Redevelopment Authority Sales Tax Revenue Bonds
Civic Center (Secondary MBIA Insured) 5.55 2023 5,000,000 4,688,300
St. Paul Housing & Redevelopment Authority Single Family Mortgage
Refunding Revenue Bonds Middle Income Phase II FNMA Mortgage Backed 6.80 2028 3,460,000 3,677,011
St. Paul Housing & Redevelopment Authority Tax Increment Revenue Bonds
Downtown & Seventh Place (AMBAC Insured) 5.40 2008 1,140,000 1,117,816
St. Paul Independent School District #625 Full Faith & Credit Certificates
Series 1995C 5.25 2014 2,225,000 2,067,670
St. Paul Independent School District #625 Full Faith & Credit Certificates
Series 1995C 5.40 2010 1,675,000 1,620,747
St. Paul Independent School District #625 Full Faith & Credit Certificates
Series 1995C 5.50 2013 2,100,000 2,022,027
St. Paul Independent School District #625 Unlimited Tax
General Obligation Bonds (CGIC Insured) 5.75 2016 4,000,000 3,919,400
Southern Minnesota Municipal Power Agency Bonds Escrowed to Maturity 5.75 2018 370,000 365,856
<PAGE>
PAGE 68
Southern Minnesota Municipal Power Agency Power Supply System
Revenue Bonds Zero Coupon Series 1994A (MBIA Insured) 6.67 2019 19,500,000 (g) 4,750,005
6.88 2022 12,000,000 (g) 2,403,600
Southern Minnesota Municipal Power Agency Pre-Refunded Bonds Series 1988A 8.125 2018 1,315,000 1,459,768
Southern Minnesota Municipal Power Agency Pre-Refunded Bonds Series 1988B 8.125 2018 1,000,000 1,110,090
Southern Minnesota Municipal Power Agency Pre-Refunded Revenue Bonds
Escrowed to Maturity Series A (Secondary MBIA Insured) 5.75 2018 1,600,000 1,582,080
Southern Minnesota Municipal Power Agency Revenue Bonds
(Secondary MBIA Insured) 4.75 2016 2,115,000 1,814,353
Southern Minnesota Municipal Power Agency Series A
(Secondary MBIA Insured) 5.75 2018 4,385,000 4,250,556
Southern Minnesota Municipal Power Agency Un-Refunded Balance
Power Revenue Bonds Series A 5.75 2018 1,895,000 1,787,876
Spring Park Health Care Facility Revenue Bonds Twin Birch Health Care Center
Series 1991 8.25 2011 1,780,000 1,943,475
State General Obligation Various Purpose Pre-Refunded Bonds Series 1990 7.00 2009 7,850,000 8,680,216
State General Obligation Various Purpose Pre-Refunded Bonds Series 1991 6.70 2011 8,000,000 8,833,360
State Higher Education Facility Authority Mortgage
Pre-Refunded Revenue Bonds St. Mary's College Series 2-M 8.375 2017 1,000,000 1,132,760
State Housing Facility Authority Housing Development Bonds Series A 7.125 2020 845,000 861,106
State Housing Facility Authority Housing Development Bonds Series 1976A 7.25 2018 205,000 210,326
State Housing Facility Authority Housing Development Bonds Series 1978B 7.10 2021 470,000 478,230
State Housing Facility Authority Housing Development Bonds Series 1979A 7.00 2022 700,000 712,257
State Housing Facility Authority Housing Finance Agency Housing Development
Single Family Mortgage Bonds Series B 7.25 2016 390,000 403,190
State Housing Finance Agency Single Family Mortgage Bonds AMT Series 1989A 8.00 2029 1,350,000 1,421,982
State Housing Finance Agency Single Family Mortgage Bonds AMT Series 1990A 7.95 2022 3,670,000 3,903,816
State Housing Finance Agency Single Family Mortgage Bonds AMT Series 1991A 7.45 2022 3,575,000 3,809,413
State Housing Finance Agency Single Family Mortgage Bonds Series 1992A 6.95 2016 3,295,000 3,465,319
State Housing Finance Agency Single Family Mortgage Revenue Bonds AMT
Series L 6.70 2020 1,100,000 1,128,336
State Public Facilities Authority Water Pollution Control Revenue Bonds
Series 1989A 7.00 2009 6,250,000 6,711,500
State University Board of Regents General Obligation Bonds
Series 1993A Inverse Floater 5.362 2003 5,000,000 (f) 4,831,250
State University Board of Regents General Obligation Pre-Refunded Bonds
Series 1989A 6.00 2011 4,625,000 4,657,329
State University Board State University System Pre-Refunded Revenue Bonds
Series 1989A (MBIA Insured) 7.40 2019 2,250,000 2,488,162
Washington County General Obligation Capital Improvement Bonds
Series 1989A 7.00 2009-10 4,425,000 4,787,363
Washington County Housing & Redevelopment Authority Multi-family Housing
Revenue Bonds AMT Orleans Homes Series 1987-2 9.00 2017 2,000,000 2,164,100
Western Minnesota Municipal Power Agency Revenue Bonds
Escrowed to Maturity (AMBAC Insured) 6.75 2016 5,935,000 6,385,941
Western Minnesota Municipal Power Agency Supply Refunding Revenue Bonds
Series 1987A 5.50 2015 5,000,000 4,671,250
Western Minnesota Municipal Power Agency Supply Refunding Revenue Bonds
Series 1987A 6.875 2007 2,500,000 2,612,825
Western Minnesota Municipal Power Agency Supply Refunding Revenue Bonds
Series 1987A 7.00 2013 7,300,000 7,633,756
Western Minnesota Municipal Power Agency Supply Refunding Revenue Bonds
Series A (Secondary MBIA Insured) 5.50 2015 6,250,000 5,969,438
White Bear Lake Industrial Development Revenue Bonds AMT Taylor Series 1988A 8.75 2008 2,250,000 2,484,608
___________________________________________________________________________________________________________________________
<PAGE>
PAGE 69
Total municipal bonds
(Cost: $381,197,944) $398,818,639
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $381,197,944)(h) $398,818,639
_____________________________________________________________________________________________________________________________
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 06-30-95 06-30-94
_______________________________________________________________________________________________________
AAA 47% 43%
AA 22 24
A 16 20
BBB and below 13 13
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
CGIC -- Capital Guaranty Insurance Company
FGIC -- Financial Guarantee Insurance Corporation
FHA -- Federal Housing Authority
MBIA -- Municipal Bond Investors Assurance
(d) The following abbreviation is used in portfolio descriptions:
AMT -- Alternative Minimum Tax
(e) Presently non-income producing. For long-term debt securities, item identified is in default as to payment of interest
and/or principal.
(f) Inverse floaters represent securities that pay interest at a rate that increases (decreases) in the same
magnitude as, or in a multiple of, a decline (increase) in market short-term rates. Interest rate disclosed
is the rate in effect on June 30, 1995. Inverse floaters in the aggregate represent 3.9% of the fund's net
assets as of June 30, 1995.
(g) For zero coupon bonds, the interest rate disclosed represents the annualized
effective yield on the date of acquisition.
(h) At June 30, 1995, the cost of securities for federal income tax purposes was $380,768,210
and the aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation $22,569,270
Unrealized depreciation (4,518,841)
___________________________________________________________________________________________
Net unrealized appreciation $18,050,429
___________________________________________________________________________________________
</TABLE>
<PAGE>
PAGE 70
<TABLE>
<CAPTION>
Investments in securities
IDS New York Tax-Exempt Fund (Percentages represent value of
June 30, 1995 investments compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (97.7%)
_____________________________________________________________________________________________________________________________
Name of issuer and title of issue (b,c,d) Coupon Maturity Principal Value(a)
rate year amount
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Battery Park City Authority Senior Refunding Revenue Bonds Series 1993A 5.25 % 2017 $4,000,000 $ 3,534,600
Broome County Certificates of Partication Public Safety Facility
Series 1994 (MBIA Insured) 5.25 2022 2,650,000 2,386,564
Buffalo Municipal Water Finance Authority Water System Revenue Bonds
(FSA Insured) 5.75 2019 700,000 672,728
Erie County Unlimited Tax General Obligation Bonds
Series B (FGIC Insured) 5.50 2025 700,000 647,003
Erie County Water Authority Fourth Resolution Water Refunding Revenue Bonds
Zero Coupon Series 1992 (AMBAC Insured) 7.30 2017 1,215,000 (e) 243,061
Erie County Water Authority Water Works System Revenue Bonds
Escrowed to Maturity Series 1990A (AMBAC Insured) 6.00 2008 1,765,000 1,795,852
Fallsburg Sullivan County Unlimited Tax General Obligation Improvement
Pre-Refunded Bonds Series 1991 7.05 2011-14 1,300,000 1,477,138
Great Neck North Water Authority Water System Pre-Refunded Revenue Bonds
Series 1989A 6.00 2020 1,415,000 1,492,372
Metropolitan Transportation Authority Commuter Facilities
1987 Service Contract Refunding Bonds Series 5 6.50 2016 1,775,000 1,779,367
Metropolitan Transportation Authority Service Transit Facilities
Pre-Refunded Revenue Bonds Series G 8.50 2011 1,000,000 1,065,480
Metropolitan Transportation Authority Transit Facilities
Pre-Refunded Revenue Bonds Series F 8.375 2016 725,000 771,581
Monroe County Utility General Obligation Pre-Refunded Bonds
Water Improvement System 7.10 2008-09 1,000,000 1,107,080
Municipal Assistance New York City Series 57 7.25 2008 500,000 522,470
Municipal Assistance New York City Series 59 7.75 2006 660,000 711,440
Municipal Assistance New York City Series 62 6.75 2006 2,200,000 2,322,804
New York & New Jersey Port Authority Consolidated Revenue Bonds AMT
Series 61 8.125 2023 750,000 768,750
New York & New Jersey Port Authority Consolidated Revenue Bonds AMT
Series 62 8.00 2023 1,000,000 1,042,290
New York City General Obligation Bonds Series 1995B 7.00 2016 1,500,000 1,551,375
New York City Municipal Water Finance Authority Water & Sewer System
Revenue Bonds Series B Inverse Floater (MBIA Insured) 5.975 2009 2,000,000 (f) 1,857,500
New York City Water Finance Authority Water & Sewer System
Pre-Refunded Revenue Bonds Series A (FGIC Insured) 6.75 2014 1,185,000 1,300,087
New York City Water Finance Authority Water & Sewer System
Revenue Bonds Series A (FGIC Insured) 6.75 2014 565,000 593,764
New York City Water Finance Authority Water & Sewer System
Revenue Pre-Refunded Bonds Series 1988A 7.00 2018 1,500,000 1,605,300
See accompanying notes to investments in securities.<PAGE>
PAGE 71
State Certificate of Participation City University John J. College 7.25 2007 360,000 372,168
State Dormitory Authority City University System
Consolidated 3rd Resolution Revenue Bonds Series 1994-2 (MBIA Insured) 6.25 2019 1,500,000 1,516,425
State Dormitory Authority City University System Pre-Refunded Revenue Bonds 8.125 2017 3,400,000 3,727,352
State Dormitory Authority City University System Pre-Refunded Revenue Bonds
Series 1986A 7.625 2013 1,000,000 1,055,310
State Dormitory Authority City University System Revenue Bonds
Series 1993A 5.75 2013 3,000,000 2,817,630
State Dormitory Authority State University Education Facility
Pre-Refunded Revenue Bonds Series 1990A 7.70 2012 1,750,000 2,015,720
State Dormitory Authority State University Education Facility
Refunding Revenue Bonds Series 1990B 7.50 2011 1,900,000 2,153,270
State Dormitory Authority State University Education Facility
Revenue Bonds (Secondary AMBAC Insured) 5.50 2019 2,000,000 1,868,980
State Dormitory Authority Upstate Community Colleges Series A
(Connie Lee Insured) 5.625 2012 1,500,000 1,445,190
State Energy Research & Development Authority Electric Facility
Revenue Bonds AMT Consolidated Edison Series 1986A 7.50 2021 1,750,000 1,827,175
State Energy Research & Development Authority Electric Facility
Revenue Bonds AMT Consolidated Edison Series 1989A 7.75 2024 1,000,000 1,067,500
State Energy Research & Development Authority Electric Facility
Revenue Bonds AMT Consolidated Edison Series 1990A 7.50 2025 5,000,000 5,345,200
State Energy Research & Development Authority Gas Facility Revenue Bonds
Brooklyn Union Gas Series I 7.125 2020 2,000,000 2,064,920
State Energy Research & Development Authority Gas Facility Revenue Bonds
Brooklyn Union Gas Series II 7.00 2020 1,500,000 1,545,975
State Energy Research & Development Authority Pollution Control
Refunding Revenue Bonds AMT Rochester Gas & Electric (MBIA Insured) 6.50 2032 2,500,000 2,538,425
State Energy Research & Development Authority Solid Waste Development
Revenue Bonds AMT State Gas & Electric Company Series A (MBIA Insured) 5.70 2028 3,000,000 2,789,310
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 3,329,430
State Housing Finance Authority State University Construction Program
Pre-Refunded Bonds Series 1986A 8.00 2016 400,000 421,892
State Housing Finance Authority State University Construction Program
Pre-Refunded Bonds Series A 8.30 2018 500,000 556,090
State Local Government Assistance Bonds Series C 5.50 2022 1,500,000 1,363,530
State Local Government Assistance Pre-Refunded Bonds Series 1991A 7.00 2016 4,000,000 4,535,040
State Medical Care Facility Finance Agency Hospital & Nursing Home
Mortgage Revenue Bonds Montefiore Hospital Series 1989A (FHA Insured) 7.25 2024 1,400,000 1,509,172
State Medical Care Facility Finance Agency Mental Health Services Facility
Improving Refunding Revenue Bonds Series 1993F (Secondary FSA Insured) 5.375 2014 1,000,000 929,320
State Medical Care Facility Finance Agency Mental Health Services Facility
Improving Refunding Revenue Bonds Series 1994A (Secondary FSA Insured) 5.25 2023 1,500,000 1,331,265
State Medical Care Facility Finance Agency Pre-Refunded Bonds
Presbyterian Hospital Series 1985B 8.00 2025 1,320,000 1,439,750
State Medical Care Facility Finance Agency Revenue Bonds
Buffalo General Hospital Series 1988C (FHA Insured) 7.60 2008 1,500,000 1,675,545
State Medical Care Facility Finance Agency Revenue Bonds
Buffalo General Hospital Series 1988C (FHA Insured) 7.70 2022 1,950,000 2,183,844
State Medical Care Facility Finance Agency Revenue Bonds
Hospital & Nursing Series B (FHA Insured) 6.25 2025 3,675,000 3,699,512
State Medical Care Facility Finance Agency Revenue Bonds
North Shore University Glen Cove Series A (MBIA Insured) 5.125 2012 1,000,000 915,480
State Medical Care Facility Finance Agency Secured Hospital Revenue Bonds
Series 1987A 7.10 2027 550,000 567,061
State Mortgage Agency Homeowner Mortgage Revenue Bonds Series TT 7.50 2015 4,000,000 4,306,240
State Mortgage Agency Homeowner Mortgage Revenue Bonds Series 27 6.90 2015 3,000,000 3,160,500
<PAGE>
PAGE 72
State Mortgage Agency Revenue Bonds AMT Series 9 7.30 2017 970,000 1,006,133
State Thruway Authority Local Highway & Bridge Service Contract Bonds
Series 1991 6.00 2011 2,500,000 2,408,475
State Urban Development Correction Facility
Pre-Refunded Revenue Bonds Series 1986 8.00 2015 750,000 780,990
State Urban Development Correction Facility Pre-Refunded Revenue Bonds
Series 1 (FSA Insured) 7.50 2020 4,500,000 5,106,465
State Urban Development Correctional Capital Facilities
Refunding Revenue Bonds Series 1993A 5.25 2021 2,500,000 2,140,850
State Urban Development Revenue Bonds Higher Education Applied Technology
Grants Series 1995 (MBIA Insured) 5.75 2015 1,000,000 963,350
Suffolk County General Obligation Public Improvement Refunding Bonds
Series G (MBIA Insured) 5.40 2014 1,000,000 945,800
Triborough Bridge & Tunnel Authority General Purpose
Pre-Refunded Revenue Bonds Series S 7.00 2021 3,000,000 3,376,890
Triborough Bridge & Tunnel Authority Special Obligation Refunding Bonds
Series 1991B (FGIC Insured) 6.875 2015 2,000,000 2,164,700
United Nations Development Senior Lien Pre-Refunded Revenue Bonds
1986 Phase II & III 7.875 2006 250,000 264,845
United Nations Development Senior Lien Refunding Revenue Bonds
Series 1992A 6.00 2026 4,500,000 4,340,700
_____________________________________________________________________________________________________________________________
Total municipal bonds
(Cost: $111,686,178) $118,822,025
_____________________________________________________________________________________________________________________________
</TABLE>
<TABLE>
<CAPTION>
Short-term securities (0.4%)
______________________________________________________________________________________________________________________________
Issuer (c,g) Effective Amount Value(a)
yield payable at
maturity
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
Municipal notes
New York City General Obligation Bonds Series B-4
08-15-23 4.25% $200,000 $ 200,000
New York City Municipal Water Finance Authority Adjustable Bonds
Series 1992-C (FGIC Insured)
06-15-22 4.25 300,000 300,000
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $500,000) $ 500,000
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $112,186,178)(h) $119,322,025
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE 73
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 06-30-95 06-30-94
_______________________________________________________________________________________________________
AAA 55% 46%
AA 20 30
A 15 11
BBB and below 10 13
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) The following abbreviation is used in portfolio descriptions:
AMT -- Alternative Minimum Tax
(e) For zero coupon bonds, the interest rate disclosed represents the annualized yield on the date of
acquisition.
(f) Inverse floaters represent securities that pay interest at a rate that increases (decreases) in the
same magnitude as, or in a multiple of, a decline (increase) in market short-term rates. Interest
rate disclosed is the rate in effect on June 30, 1995. Inverse floaters in the aggregate represent
1.5% of the fund's net assets as of June 30, 1995.
(g) Interest rate varies to reflect current market conditions; rate shown is the effective rate on June 30, 1995.
(h) At June 30, 1995, the cost of securities for federal income tax purposes was $112,148,011
and the aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation $8,349,582
Unrealized depreciation (1,175,568)
______________________________________________________________________________________________________
Net unrealized appreciation $7,174,014
______________________________________________________________________________________________________
</TABLE>
<PAGE>
PAGE 74
<TABLE>
<CAPTION>
Investments in securities
IDS Ohio Tax-Exempt Fund
June 30, 1995 (Percentages represent value of
investments compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (98.5%)
_____________________________________________________________________________________________________________________________
Name of issuer and Coupon Maturity Principal Value(a)
title of issue (b,c,d) rate year 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 $ 886,450
Akron Bath & Copley Joint Township Hospital Refunding Revenue Bonds
Childrens Hospital Medical Center Series 1993 (AMBAC Insured) 5.25 2020 1,500,000 1,352,400
Barberton Limited Tax Various Purpose General Obligation Bonds
Series 1989-1 7.35 2009 700,000 742,742
Bedford Sewer System Mortgage Revenue Bonds Series 1986 (AMBAC Insured) 7.80 2010 300,000 320,238
Bellefontaine Hospital Facility Refunding Revenue Bonds
Mary Rutan Health Association of Logan County Series 1993 6.00 2013 1,000,000 909,290
Buckeye Valley Local School District School Improvement Unlimited Tax
General Obligation Bonds Series 1995A (MBIA Insured) 5.25 2020 1,000,000 919,810
Butler County Hospital Facility Improvement Refunding Revenue Bonds 7.50 2010 1,750,000 1,805,107
Clermont County Hospital Facility Revenue Bonds Mercy Health System
Province of Cincinnati Series 1989A (AMBAC Insured) 7.50 2019 750,000 850,649
Cleveland Airport Systems Revenue Bonds AMT Series 1990A (MBIA Insured) 7.40 2020 500,000 546,125
Cleveland Airport Systems Revenue Bonds AMT Series A (FGIC Insured) 6.00 2024 1,500,000 1,462,050
Cleveland General Obligation Pre-Refunded Bonds 7.375 2003 125,000 135,706
Cleveland Public Power System 1st Mortgage Pre-Refunded Revenue Bonds 8.375 2017 100,000 110,242
Cleveland School District Unlimited Tax Improvement
General Obligation Bonds Series A (FGIC Insured) 5.875 2011 1,000,000 1,000,300
Cleveland Waterworks Improvement 1st Mortgage Refunding Revenue Bonds
Series F 1992B (AMBAC Insured) 6.25 2016 1,000,000 1,024,470
Cleveland Waterworks Improvement 1st Mortgage Revenue Bonds Series 1987E 6.00 2017 200,000 195,282
Cleveland Waterworks Improvement 1st Mortgage Pre-Refunded Revenue Bonds
Series 1987E 7.875 2016 650,000 698,028
Coshocton County Solid Waste Disposal Refunding Revenue Bonds
Stone Container Series 1992 7.875 2013 1,000,000 1,025,390
Cuyahoga County Hospital Improvement Revenue Bonds
Cleveland Clinic Foundation 7.00 2013 500,000 522,395
Cuyahoga County Hospital Improvement Pre-Refunded Revenue Bonds
Cleveland Clinic Foundation Series 1987A 7.875 2010 275,000 303,479
Cuyahoga County Hospital Improvement Revenue Bonds
Mount Sinai Medical Center Series 1991 (AMBAC Insured) 6.625 2021 600,000 636,510
Cuyahoga County Hospital Improvement Revenue Bonds
University Hospitals Health System Series 1992 (AMBAC Insured) 6.50 2011 500,000 521,930
Cuyahoga County Hospital Refunding Revenue Bonds
Cleveland Clinic Foundation Series 1992 5.50 2011 1,500,000 1,441,995
Cuyahoga County Hospital Refunding Revenue Bonds
Mount Sinai Medical Center Series 1987A 8.125 2014 400,000 427,320
Cuyahoga County Hospital Revenue Bonds Meridia Health Series 1991 7.00 2023 1,000,000 1,041,300
Cuyahoga County Limited Tax General Obligation Bonds 5.60 2013 500,000 474,530
Cuyahoga Hospital Revenue Bonds Metrohealth System Series 1989
(MBIA Insured) 6.00 2019 1,000,000 994,900
See accompanying notes to investments in securities.<PAGE>
PAGE 75
Delaware County Sewer Improvement Limited Tax General Obligation Bonds 5.25 2015 1,000,000 928,970
Dover Limited Tax Improvement General Obligation
Municipal Sewer System Bonds 7.10 2009 1,000,000 1,065,930
Elyria Limited Tax Improvement General Obligation
Recreation Facility Bonds 7.10 2009 715,000 762,140
Erie County Hospital Improvement Refunding Revenue Bonds
Firelands Community Hospital Series 1992 6.75 2015 2,000,000 2,034,840
Findlay Water System Limited Tax Improvement General Obligation Bonds 5.55 2018 365,000 343,352
Franklin County Convention Facilities Authority Tax & Lease
Revenue Anticipation Pre-Refunded Bonds (MBIA Insured) 7.00 2019 1,500,000 1,691,220
Franklin County Limited Tax General Obligation Refunding Bonds Series 1993 5.50 2013 1,000,000 966,260
Gahanna-Jefferson City School District Unlimited Tax
General Obligation Bonds (Secondary FGIC Insured) 6.15 2017 1,000,000 1,014,530
Highland Heights Limited Tax Improvement General Obligation Street Bonds 7.75 2008 400,000 444,280
Hilliard County School District School Improvement Unlimited Tax
General Obligation Bonds Series 1995A (FGIC Insured) 5.75 2019 1,000,000 963,150
Kettering School District Improvement General Obligation Bonds
(FGIC Insured) 5.25 2022 1,000,000 910,870
Lake County Water System Limited Tax Improvement General Obligation
Pre-Refunded Bonds Series 1987-2 8.125 2010 700,000 775,194
Lakota Local School District Butler County School Unlimited Tax
Improvement Bonds 7.00 2012 500,000 549,140
Lakota Local School District Butler County School Unlimited Tax Improvement
Pre-Refunded Bonds 7.90 2011 200,000 222,992
Lakota Local School District Unlimited Tax Improvement
General Obligation Bonds (AMBAC Insured) 6.25 2014 2,000,000 2,056,900
Lima Limited Tax Improvement General Obligation
Sanitary Sewer System Pre-Refunded Bonds 8.25 2012 200,000 222,054
Lorain County Hospital Facilities Refunding Revenue Bonds
EMH Regional Medical Center Series 1995 (AMBAC Insured) 5.375 2021 1,000,000 911,540
Lorain Various Purpose Limited Tax General Obligation Bonds
Series 1995 (AMBAC Insured) 5.65 2015 370,000 358,230
Lucas County Hospital Refunding Revenue Bonds St. Vincent's Medical Center
Series B (MBIA Insured) 5.25 2020 2,000,000 1,792,160
Lucas County Hospital Pre-Refunded Revenue Bonds Toledo Hospital
(MBIA Insured) 7.00 2014 100,000 104,574
Marietta Sewer System Improvement Bonds (BIG Insured) 7.50 2007 200,000 216,114
Marion County Health Care Facilities Improvement Refunding Revenue
Bonds United Church Homes Series 1993 6.375 2010 1,000,000 964,360
Marysville Sewer System 1st Mortgage Revenue Bonds AMT Series 1988
(BIG Insured) 7.85 2008 400,000 441,400
Marysville Water System Mortgage Revenue Bonds Series 1991 (MBIA Insured) 7.05 2021 1,000,000 1,135,700
Medina County Hospital Revenue Bonds Medina County Community Hospital
Series 1987 (AMBAC Insured) 6.875 2016 100,000 106,705
Miami County Hospital Facility Refunding Revenue Bonds
Upper Valley Medical Center Series 1987A 8.375 2013 75,000 81,031
Miami State University General Receipts Bonds Series 1993 (FGIC Insured) 5.60 2013 500,000 486,540
Montgomery County Health Facilities Revenue Bonds Friendship Village Dayton
Series 1990A 9.25 2016 1,000,000 1,040,160
Montgomery County Industrial Development Revenue Bonds AMT SPM System
Series 1991 10.00 2005 720,000 (e) 360,000
Montgomery County Water Revenue Bonds Greater Moraine - Beavercreek
District (FGIC Insured) 6.25 2017 1,000,000 1,026,660
Parma Hospital Improvement Revenue Bonds Parma Community General Hospital
Series 1989B (MBIA Insured) 7.125 2013 500,000 545,475
Pickerington Local School District Unlimited Tax General Obligation
Pre-Refunded Bonds (AMBAC Insured) 7.00 2013 1,000,000 1,127,480
Ross County Hospital Refunding Revenue Bonds
Medical Center Hospital (AMBAC Insured) 5.60 2014 900,000 863,946
<PAGE>
PAGE 76
Rural Loraine County Water Authority Water Resource Improvement
Pre-Refunded Revenue Bonds Series 1991 (AMBAC Insured) 7.00 2011 1,000,000 1,130,160
South Euclid Lyndhurst School District General Obligation Bonds
(FGIC Insured) 5.25 2018 1,000,000 920,970
Southwest Licking Local School District School Facilities Unlimited Tax
General Obligation Bonds (FGIC Insured) 5.75 2022 1,000,000 961,320
Southwest Local School District Hamilton & Butler Counties School
Unlimited Tax Improvement Bonds (AMBAC Insured) 7.65 2010 500,000 575,210
Stark County Hospital Pre-Refunded Revenue Bonds
Timkin Mercy Medical Center 7.50 2007 125,000 133,444
State Air Quality Development Authority Refunding Revenue Bonds AMT
JMG Funding Limited Partnership (AMBAC Insured) 6.375 2029 500,000 513,885
State Air Quality Development Authority Refunding Revenue Bonds AMT
Series 1994 (AMBAC Insured) 6.375 2029 2,000,000 2,055,540
State Air Quality Development Authority Revenue Bonds
Cleveland Electric Illuminating Series A 7.00 2009 350,000 350,599
State Air Quality Development Authority Revenue Bonds
Columbus & Southern Series A (FGIC Insured) 6.375 2020 1,000,000 1,028,070
State Building Authority Local Jail Grant Bonds Series 1989A
(MBIA Insured) 7.35 2009 500,000 558,840
State Building Authority State Correctional Facility Revenue Bonds Series B 7.125 2009 75,000 78,481
State Building Authority State Facility Pre-Refunded Bonds
Columbus State Office Building Series 1985C 7.35 2005 1,000,000 1,134,750
State Higher Educational Facility Pre-Refunded Revenue Bonds
Oberlin College Series 1989 7.375 2014 500,000 562,060
State Housing Finance Agency Mortgage Revenue Bonds AMT
Aristocrat South Board & Care Series 1991A (FHA Insured) 7.30 2031 1,500,000 1,578,105
State Housing Finance Agency Single Family Mortgage Revenue Bonds AMT
Series 1990A (GNMA Insured) 7.80 2030 640,000 677,946
State Housing Finance Agency Single Family Mortgage Revenue Bonds AMT
Series 1990C (GNMA Insured) 7.85 2021 950,000 1,007,399
State Municipal Electric Generation Agency Joint Venture #5 Revenue Bonds
(AMBAC Insured) 5.375 2024 2,000,000 1,822,220
State Turnpike Revenue Bonds Series A 5.75 2024 1,000,000 955,410
State Valley School District School Improvement Unlimited Tax
General Obligation Bonds Counties of Adams & Highland
Series 1995 (MBIA Insured) 5.25 2021 2,000,000 1,822,000
State Water Development Authority Pollution Control Revenue Bonds
Phillip Morris 7.25 2008 150,000 161,736
State Water Development Authority Bonds AMT Toledo Edison Series 1994 8.00 2023 1,000,000 1,041,230
State Water Development Authority Water Development Pre-Refunded Bonds
Pure Water Series 1987I 7.75 2006-14 200,000 217,186
State Water Development Authority Water Development Pre-Refunded Bonds
Pure Water Series 1988I 7.00 2014 500,000 537,915
State Water Development Authority Water Development Refunding Revenue Bonds
Pure Water (AMBAC Insured) 5.50 2018 750,000 710,310
Summit County Industrial Development Revenue Bonds Century Products 7.75 2005 100,000 105,966
Summit County Limited Tax General Obligation Pre-Refunded Bonds
Human Services Facility (AMBAC Insured) 8.00 2007 100,000 110,641
Sycamore Board of Education Community School District
Hamilton County School Improvement Bonds 6.50 2009 500,000 521,145
Toledo General Obligation Improvement Bonds (AMBAC Insured) 6.10 2014 1,000,000 1,015,550
University General Receipts Refunding Revenue Bonds
Student Recreation Center (FGIC Insured) 5.00 2013 1,500,000 1,358,895
University of Cincinnati General Receipt Pre-Refunded Bonds Series I-1 7.10 2010 750,000 832,485
University of Toledo General Receipt Pre-Refunded Bonds Series 1990
(MBIA Insured) 7.125 2020 500,000 562,040
Warren County Various Purpose Limited Tax General Obligation Bonds
Series 1992 6.10 2012 500,000 514,615
<PAGE>
PAGE 77
Whitehall City School District Franklin County Unlimited Tax
Improvement General Obligation Pre-Refunded
School Building Construction 7.25 2013 500,000 563,170
_____________________________________________________________________________________________________________________________
Total municipal bonds
(Cost: $69,835,567) $72,981,828
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $69,835,567)(f) $72,981,828
_____________________________________________________________________________________________________________________________
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 06-30-95 06-30-94
___________________________________________________________________________________________________________
AAA 72% 65%
AA 7 11
A 10 14
BBB and below 11 10
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
BIG -- Bond Investors Guarantee
FGIC -- Financial Guarantee Insurance Corporation
FHA -- Federal Housing Authority
GNMA -- Government National Mortgage Association
MBIA -- Municipal Bond Investors Assurance
(d) The following abbreviation is used in portfolio descriptions:
AMT -- Alternative Minimum Tax
(e) Presently non-income producing. For long-term debt securities, item identified is in default as to payment of
interest and/or principal.
(f) At June 30, 1995, the cost of securities for federal income tax purposes was $69,787,505 and
the aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation $3,985,796
Unrealized depreciation (791,473)
______________________________________________________________________________________________________
Net unrealized appreciation $3,194,323
______________________________________________________________________________________________________
</TABLE>
<PAGE>
PAGE 78
IDS mutual funds
Cash equivalent investments
These money market funds have three main goals: conservation 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
seek 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 seek
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 79
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 the
timely payment of 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
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. Lower-quality securities generally involve greater risk of
principal and income.
(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
IDS Tax-Exempt Bond Fund
Invests mainly in bonds and notes of state or local government
units, with at least 75% 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
<PAGE>
PAGE 80
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% of
its assets in the U.S. market.
(icon of) three flags
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 Select 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
IDS Blue Chip Advantage Fund
Invests in selected stocks from a major market index. Securities
purchased are those recommended by our 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 in common stock of companies representing many sectors of
the economy. Seeks current income and growth of capital.
(icon of) building with columns
IDS Equity Value Fund
Invests primarily in undervalued common stocks that offer potential
for growth of capital and income.
(icon of) three growing flowers
<PAGE>
PAGE 81
IDS Utilities Income Fund
Invests primarily in the stocks of public utility companies to seek
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 seek 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.
IDS Discovery Fund
Invests in small- and medium-size, growth-oriented companies
emphasizing technological innovation and productivity enhancement.
Buys and holds larger growth-oriented stocks.
(icon of) ship
IDS Strategy Aggressive 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
<PAGE>
PAGE 82
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 companies with significant growth potential
due to superiority in technology, marketing or management. The
fund frequently changes its industry mix.
(icon of) prism
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.
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 advisor or writing to American Express Shareholder
Service, P.O. Box 534, Minneapolis, MN 55440-0534. Read it
carefully before you invest or send money.
<PAGE>
PAGE 83
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 tax statement sent next January.
IDS California Tax-Exempt Fund
Fiscal year ended June 30, 1995
Class A
Exempt-interest dividends -- taxable status
explained below.
Payable date Per share
July 26, 1994 $0.02430
Aug. 26, 1994 0.02560
Sept. 26, 1994 0.02624
Oct. 26, 1994 0.02472
Nov. 28, 1994 0.02785
Dec. 28, 1994 0.02444
Jan. 25, 1995 0.02282
Feb. 23, 1995 0.02572
March 27, 1995 0.02644
April 26, 1995 0.02435
May 25, 1995 0.02276
June 26, 1995 0.02512
Total
distributions $0.30036
Class B
Exempt-interest dividends -- taxable status
explained below.
Payable date Per share
March 27, 1995 $0.02598
April 26, 1995 0.02133
May 25, 1995 0.01969
June 26, 1995 0.02167
Total
distributions $0.08867
<PAGE>
PAGE 84
Class Y
Exempt-interest dividends -- taxable status
explained below.
Payable date Per share
April 26, 1995 $0.03279
May 25, 1995 0.02350
June 26, 1995 0.02586
Total
distributions $0.08215
Source of distributions
100% of exempt-interest distributions during the
fiscal year ended June 30, 1995 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 85
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, 1995
Class A
Exempt-interest dividends--taxable status explained below.
Payable date Per share
July 26, 1994 $0.02350
Aug. 26, 1994 0.02520
Sept. 26, 1994 0.02607
Oct. 26, 1994 0.02426
Nov. 28, 1994 0.02776
Dec. 28, 1994 0.02432
Jan. 25, 1995 0.02284
Feb. 23, 1995 0.02607
March 27, 1995 0.02529
April 26, 1995 0.02429
May 25, 1995 0.02282
June 26, 1995 0.02552
Total
distributions $0.29794
Class B
Exempt-interest dividends--taxable status explained below.
Payable date Per share
March 27, 1995 0.02315
April 26, 1995 0.02095
May 25, 1995 0.01960
June 26, 1995 0.02206
Total
distributions $0.08576
<PAGE>
PAGE 86
Class Y
Exempt-interest dividends--taxable status explained below.
Payable date Per share
April 26, 1995 0.03245
May 25, 1995 0.02327
June 26, 1995 0.02657
Total
distributions $0.08229
Source of distributions
100% of exempt interest distributions during the
fiscal year ended June 30, 1995 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 87
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 tax statement sent next January.
IDS Michigan Tax-Exempt Fund
Fiscal year ended June 30, 1995
Class A
Exempt-interest dividends -- taxable status
explained below.
Payable date Per share
July 26, 1994 $0.02390
Aug. 26, 1994 0.02550
Sept. 26, 1994 0.02619
Oct. 26, 1994 0.02480
Nov. 28, 1994 0.02828
Dec. 28, 1994 0.02489
Jan. 25, 1995 0.02307
Feb. 23, 1995 0.02634
March 27, 1995 0.02668
April 26, 1995 0.02503
May 25, 1995 0.02377
June 26, 1995 0.02569
Total $0.30414
Capital gain distribution -- taxable as
long-term capital gain.
Payable date Per share
Dec. 28, 1994 $0.00248
Total distributions $0.30662
<PAGE>
PAGE 88
Class B
Exempt-interest dividends -- taxable status
explained below.
Payable date Per share
March 27, 1995 $0.02394
April 26, 1995 0.02202
May 25, 1995 0.02059
June 26, 1995 0.02222
Total distributions $0.08877
Class Y
Exempt-interest dividends -- taxable status
explained below.
Payable date Per share
April 26, 1995 $0.03363
May 25, 1995 0.02492
June 26, 1995 0.02663
Total distributions $0.08518
Source of distributions
100% of exempt-interest distributions during the
fiscal year ended June 30, 1995 was derived from
interest on Michigan 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 89
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 tax statement sent next January.
IDS Minnesota Tax-Exempt Fund
Fiscal year ended June 30, 1995
Class A
Exempt-interest dividends -- taxable status
explained below.
Payable date Per share
July 26, 1994 $0.02380
Aug. 26, 1994 0.02570
Sept. 26, 1994 0.02663
Oct. 26, 1994 0.02521
Nov. 28, 1994 0.02837
Dec. 28, 1994 0.02503
Jan. 25, 1995 0.02335
Feb. 23, 1995 0.02608
March 27, 1995 0.02657
April 26, 1995 0.02500
May 25, 1995 0.02312
June 26, 1995 0.02845
Total
distributions $0.30731
Class B
Exempt-interest dividends -- taxable status
explained below.
Payable date Per share
March 27, 1995 $0.02617
April 26, 1995 0.02212
May 25, 1995 0.02007
June 26, 1995 0.02498
Total
distributions $0.09334<PAGE>
PAGE 90
Class Y
Exempt-interest dividends -- taxable status
explained below.
Payable date Per share
April 26, 1995 $0.03342
May 25, 1995 0.02400
June 26, 1995 0.02921
Total
distributions $0.08663
Source of distributions
100% of exempt-interest distributions during the
fiscal year ended June 30, 1995 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 91
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 tax statement sent next January.
IDS New York Tax-Exempt Fund
Fiscal year ended June 30, 1995
Class A
Exempt-interest dividends -- taxable status
explained below.
Payable date Per share
July 26, 1994 $0.02360
Aug. 26, 1994 0.02530
Sept. 26, 1994 0.02608
Oct. 26, 1994 0.02450
Nov. 28, 1994 0.02761
Dec. 28, 1994 0.02427
Jan. 25, 1995 0.02278
Feb. 23, 1995 0.02588
March 27, 1995 0.02638
April 26, 1995 0.02460
May 25, 1995 0.02273
June 26, 1995 0.02525
Total
distributions $0.29898
Class B
Exempt-interest dividends -- taxable status
explained below.
Payable date Per share
March 27, 1995 $0.02606
April 26, 1995 0.02165
May 25, 1995 0.01969
June 26, 1995 0.02188
Total
distributions $0.08928
<PAGE>
PAGE 92
Class Y
Exempt-interest dividends -- taxable status
explained below.
Payable date Per share
April 26, 1995 $0.03290
May 25, 1995 0.02371
June 26, 1995 0.02605
Total
distributions $0.08266
Source of distributions
100% of exempt-interest distributions during the
fiscal year ended June 30, 1995 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 93
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 tax statement sent next January.
IDS Ohio Tax-Exempt Fund
Fiscal year ended June 30, 1995
Class A
Exempt-interest dividends -- taxable status
explained below.
Payable date Per share
July 26, 1994 $0.02350
Aug. 26, 1994 0.02500
Sept. 26, 1994 0.02519
Oct. 26, 1994 0.02438
Nov. 28, 1994 0.02768
Dec. 28, 1994 0.02456
Jan. 25, 1995 0.02263
Feb. 23, 1995 0.02540
March 27, 1995 0.02567
April 26, 1995 0.02422
May 25, 1995 0.02227
June 26, 1995 0.02622
Total
distributions $0.29672
Class B
Exempt-interest dividends -- taxable status
explained below.
Payable date Per share
March 27, 1995 $0.02515
April 26, 1995 0.02111
May 25, 1995 0.01913
June 26, 1995 0.02267
Total
distributions $0.08806
<PAGE>
PAGE 94
Class Y
Exempt-interest dividends -- taxable status
explained below.
Payable date Per share
April 26, 1995 $0.03251
May 26, 1995 0.02412
June 26, 1995 0.02601
Total
distributions $0.08264
Source of distributions
100% of exempt-interest distributions during the
fiscal year ended June 30, 1995 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 95
Quick telephone reference
American Express 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
American Express Shareholder Service
Fund performance, objectives and account inquiries
612-671-3733
TTY Service
For the hearing impaired
800-846-4852
American Express 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 advisor:
IDS State Tax-Exempt Funds
IDS Tower 10
Minneapolis, MN 55440-0010
<PAGE>
PAGE 96
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.
