<PAGE> PAGE 1
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000 C000000 0000792717
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
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000 J000000 U
001 A000000 AXP CALIFORNIA TAX-EXEMPT TRUST
001 B000000 811-4646
001 C000000 6126713800
002 A000000 IDS TOWER 10
002 B000000 MINNEAPOLIS
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002 D020000 0010
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013 B020001 MN
013 B030001 55402
013 B040001 3900
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022 A000001 MORGAN STANLEY & CO., INC.
022 B000001 13-2658898
022 C000001 27918
022 D000001 27290
022 A000002 SUTRO & CO., INC.
022 B000002 94-1704902
022 C000002 24409
022 D000002 17961
022 A000003 PAINEWEBBER INC.
022 B000003 13-2638166
022 C000003 19347
022 D000003 18406
022 A000004 MERRILL LYNCH & CO., INC.
022 B000004 13-5674085
022 C000004 9305
022 D000004 11111
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022 B000005 N/A
022 C000005 9942
<PAGE> PAGE 2
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022 A000006 PIPER JAFFRAY INC.
022 B000006 41-0953246
022 C000006 4591
022 D000006 1420
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022 B000007 N/A
022 C000007 3950
022 D000007 0
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022 C000008 2970
022 D000008 0
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022 B000009 94-3057440
022 C000009 2851
022 D000009 0
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<PAGE> PAGE 3
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<PAGE> PAGE 4
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<PAGE> PAGE 6
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SIGNATURE LESLIE L. OGG
TITLE VICE PRESIDENT
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 3
<NAME> AXP CALIFORNIA TAX EXEMPT FUND CLASS A
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> JUN-30-1999
<INVESTMENTS-AT-COST> 250933404
<INVESTMENTS-AT-VALUE> 265125212
<RECEIVABLES> 4540040
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 269665252
<PAYABLE-FOR-SECURITIES> 2389396
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 381453
<TOTAL-LIABILITIES> 2770849
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 258271162
<SHARES-COMMON-STOCK> 47434784
<SHARES-COMMON-PRIOR> 44726597
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 1
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 5440474
<ACCUM-APPREC-OR-DEPREC> 14063716
<NET-ASSETS> 245947413
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 15420754
<OTHER-INCOME> 0
<EXPENSES-NET> 2196509
<NET-INVESTMENT-INCOME> 13224245
<REALIZED-GAINS-CURRENT> (132232)
<APPREC-INCREASE-CURRENT> (8521862)
<NET-CHANGE-FROM-OPS> 4570151
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 12458083
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 7876900
<NUMBER-OF-SHARES-REDEEMED> 6741823
<SHARES-REINVESTED> 1573110
<NET-CHANGE-IN-ASSETS> 12576722
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 55
<OVERDIST-NET-GAINS-PRIOR> 5308242
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<GROSS-EXPENSE> 2218479
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<PER-SHARE-GAIN-APPREC> (0.17)
<PER-SHARE-DIVIDEND> 0.27
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 5.18
<EXPENSE-RATIO> 0.79
[AVG-DEBT-OUTSTANDING] 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 3
<NAME> AXP CALIFORNIA TAX EXEMPT FUND CLASS B
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> JUN-30-1999
<INVESTMENTS-AT-COST> 250933404
<INVESTMENTS-AT-VALUE> 265125212
<RECEIVABLES> 4540040
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<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 269665252
<PAYABLE-FOR-SECURITIES> 2389396
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 381453
<TOTAL-LIABILITIES> 2770849
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 258271162
<SHARES-COMMON-STOCK> 4040395
<SHARES-COMMON-PRIOR> 2797715
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 1
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 5440474
<ACCUM-APPREC-OR-DEPREC> 14063716
<NET-ASSETS> 20946990
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 15420754
<OTHER-INCOME> 0
<EXPENSES-NET> 2196509
<NET-INVESTMENT-INCOME> 13224245
<REALIZED-GAINS-CURRENT> (132232)
<APPREC-INCREASE-CURRENT> (8521862)
<NET-CHANGE-FROM-OPS> 4570151
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 766108
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1618457
<NUMBER-OF-SHARES-REDEEMED> 485671
<SHARES-REINVESTED> 109894
<NET-CHANGE-IN-ASSETS> 12576722
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 55
<OVERDIST-NET-GAINS-PRIOR> 5308242
<GROSS-ADVISORY-FEES> 1257978
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2218479
<AVERAGE-NET-ASSETS> 18153917
<PER-SHARE-NAV-BEGIN> 5.35
<PER-SHARE-NII> 0.22
<PER-SHARE-GAIN-APPREC> (0.17)
<PER-SHARE-DIVIDEND> 0.22
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 5.18
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</TABLE>
EXHIBIT 77D
for IDS California Tax-Exempt Trust
series IDS California Tax-Exempt Fund
At Board of Directors meetings held on October 7-8, 1998, the following
investment policies were eliminated for the six month period ending 6/30/98 :
That the fundamental investment policy prohibiting buying issuers
of any company if an officer or Board member of the fund of the fund's
investment adviser individually owns more than 1/2 of 1% of the
issuers of that company and together they own more that 5%
of those securities should be eliminated.
<TABLE>
<CAPTION>
SHAREHOLDER RESPONSE SUMMARY REPORT Page 1
IDS FUNDS
IDS CALIFORNIA TAX-EXEMPT FUND
June 16, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
--------------- ---------------- ----------------
1. Election of Board members.
H. Brewster Atwater, Jr.
<S> <C> <C> <C>
Affirmative 29,162,651.369 57.427% 98.277%
Withhold 511,341.585 1.007% 1.723%
TOTAL 29,673,992.954 58.434% 100.000%
Arne H. Carlson
Affirmative 29,145,684.324 57.393% 98.220%
Withhold 528,308.630 1.041% 1.780%
TOTAL 29,673,992.954 58.434% 100.000%
Lynne V. Cheney
Affirmative 29,106,047.238 57.315% 98.086%
Withhold 567,945.716 1.119% 1.914%
TOTAL 29,673,992.954 58.434% 100.000%
William H. Dudley
Affirmative 29,162,165.180 57.426% 98.275%
Withhold 511,827.774 1.008% 1.725%
TOTAL 29,673,992.954 58.434% 100.000%
David R. Hubers
Affirmative 29,170,613.847 57.443% 98.304%
Withhold 503,379.107 .991% 1.696%
TOTAL 29,673,992.954 58.434% 100.000%
Heinz F. Hutter
Affirmative 29,162,651.369 57.427% 98.277%
Withhold 511,341.585 1.007% 1.723%
TOTAL 29,673,992.954 58.434% 100.000%
Anne P. Jones
Affirmative 29,150,872.843 57.404% 98.237%
Withhold 523,120.111 1.030% 1.763%
TOTAL 29,673,992.954 58.434% 100.000%
SHAREHOLDER RESPONSE SUMMARY REPORT Page 2
IDS FUNDS
IDS CALIFORNIA TAX-EXEMPT FUND
June 16, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
--------------- ---------------- ----------------
William R. Pearce
Affirmative 29,146,397.185 57.395% 98.222%
Withhold 527,595.769 1.039% 1.778%
TOTAL 29,673,992.954 58.434% 100.000%
Alan K. Simpson
Affirmative 29,132,702.677 57.368% 98.176%
Withhold 541,290.277 1.066% 1.824%
TOTAL 29,673,992.954 58.434% 100.000%
John R. Thomas
Affirmative 29,170,613.847 57.443% 98.304%
Withhold 503,379.107 .991% 1.696%
TOTAL 29,673,992.954 58.434% 100.000%
C. Angus Wurtele
Affirmative 29,170,613.847 57.443% 98.304%
Withhold 503,379.107 .991% 1.696%
TOTAL 29,673,992.954 58.434% 100.000%
2. Ratify the selection of independent auditors
Affirmative 28,959,252.403 57.026% 97.591%
Against 263,173.039 .519% .887%
Abstain 451,567.512 .889% 1.522%
TOTAL 29,673,992.954 58.434% 100.000%
3. Change the Fund name from "IDS" to "AXP"
Affirmative 26,343,135.809 51.875% 88.775%
Against 2,610,411.206 5.140% 8.797%
Abstain 720,445.939 1.419% 2.428%
TOTAL 29,673,992.954 58.434% 100.000%
SHAREHOLDER RESPONSE SUMMARY REPORT Page 3
IDS FUNDS
IDS CALIFORNIA TAX-EXEMPT FUND
June 16, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
--------------- ---------------- ----------------
6. Changes to investment policies
6.1 Prohibited conflict of interest
Affirmative 26,623,773.198 52.427% 90.354%
Against 1,666,417.352 3.282% 5.655%
Abstain 1,175,994.404 2.316% 3.991%
TOTAL 29,466,184.954 58.025% 100.000%
Not Voting 207,808.000
SHAREHOLDER RESPONSE SUMMARY REPORT Page 4
IDS FUNDS
IDS CALIFORNIA TAX-EXEMPT FUND
June 16, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
--------------- ---------------- ----------------
** FUND TOTALS: SHARES
RECORD TOTAL 50,782,241.988
VOTED SHARES 29,673,992.954
PERCENT VOTED 58.434%
C37
SHAREHOLDER RESPONSE SUMMARY REPORT Page 1
IDS FUNDS
IDS CALIFORNIA TAX-EXEMPT FUND CLASS B
June 16, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
--------------- ---------------- ----------------
4. Approve a new shareholder service and distribution plan
Affirmative 1,850,830.933 47.792% 87.558%
Against 74,503.175 1.923% 3.525%
Abstain 188,493.560 4.868% 8.917%
TOTAL 2,113,827.668 54.583% 100.000%
SHAREHOLDER RESPONSE SUMMARY REPORT Page 2
IDS FUNDS
IDS CALIFORNIA TAX-EXEMPT FUND CLASS B
June 16, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
--------------- ---------------- ----------------
** FUND TOTALS: SHARES
RECORD TOTAL 3,872,703.988
VOTED SHARES 2,113,827.668
PERCENT VOTED 54.583%
C37
SHAREHOLDER RESPONSE SUMMARY REPORT Page 1
IDS FUNDS
IDS CALIFORNIA TAX-EXEMPT FUND CLASSES A & B
June 16, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
--------------- ---------------- ----------------
4. Approve a new shareholder service and distribution plan
Affirmative 26,099,937.913 51.396% 88.577%
Against 2,190,970.640 4.315% 7.435%
Abstain 1,175,034.180 2.313% 3.988%
TOTAL 29,465,942.733 58.024% 100.000%
Not Voting 207,808.000
SHAREHOLDER RESPONSE SUMMARY REPORT Page 2
IDS FUNDS
IDS CALIFORNIA TAX-EXEMPT FUND CLASSES A & B
June 16, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
--------------- ---------------- ----------------
** FUND TOTALS: SHARES
RECORD TOTAL 50,781,999.767
VOTED SHARES 29,673,750.733
PERCENT VOTED 58.434%
C37
</TABLE>
Independent Auditors' Report
on Internal Accounting Control
The Board of Directors and Shareholders
AXP California Tax-Exempt Trust:
In planning and performing our audits of the financial statements of
AXP Tax-Exempt - California (fund within AXP California Tax-Exempt Trust)
for theyear ended June 30, 1999, we considered its internal control, including
control activities for safeguarding securities, in order to determine our
auditing procedures for the purpose of expressing our opinion on the
financial statements and to comply with the requirements of
Form N-SAR, not to provide assurance on the internal control.
The management of AXP California Tax-Exempt Trust is responsible
for establishing and maintaining internal control. In fulfilling
this responsibility, estimates and judgments by management
are required to assess the expected benefits and related costs
of controls. Generally, controls that are relevant to an audit
pertain to the entity's objective of preparing financial
statements for external purposes that are fairly presented
in conformity with generally accepted accounting
principles. Those controls include the safeguarding of
assets against unauthorized acquisition, use, or disposition.
Because of inherent limitations in internal control, errors or
irregularities may occur and not be detected. Also,
projection of any evaluation of internal control to future
periods is subject to the risk that it may become inadequate
because of changes in conditions or that the effectiveness
of the design and operation may deteriorate.
Our consideration of the internal control would not necessarily
disclose all matters in the internal control that might be
material weaknesses under standards established by the
American Institute of Certified Public Accountants.
A material weakness is a condition in which the
design or operation of one or more of the internal control
components does not reduce to a relatively low
level the risk that errors or irregularities in amounts
that would be material in relation to the financial
statements being audited may occur and not be detected
within a timely period by employees in the normal course
of performing their assigned functions. However, we
noted no matters involving the internal control and
its operation, including controls for safeguarding securities,
that we consider to be a material weakness as defined above.
This report is intended solely for the information and use
of management, the Board of Directors of AXP California
Tax-Exempt Trust, and the Securities and Exchange
Commission and is not intended to be and should not be used
by anyone other than these specified parties.
KPMG LLP
Minneapolis, Minnesota
August 6, 1999
