<PAGE> PAGE 1
000 A000000 12/31/99
000 C000000 0000792717
000 D000000 N 000 E000000 NF 000 F000000 Y 000 G000000 N 000 H000000 N 000
I000000 3.0.a 000 J000000 U
001 A000000 AXP CALIFORNIA TAX-EXEMPT TRUST
001 B000000 811-4646
001 C000000 6126713800
002 A000000 IDS TOWER 10
002 B000000 MINNEAPOLIS
002 C000000 MN
002 D010000 55440
002 D020000 0010
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
014 A000001 AMERICAN ENTERPRISE INVESTMENT SERVICE INC.
014 B000001 8-42582
014 A000002 AMERICAN EXPRESS FINANCIAL ADVISORS INC.
014 B000002 8-16791
014 A000003 IDS LIFE INSURANCE COMPANY
014 B000003 8-14124
014 A000004 SECURITIES AMERICA INC.
014 B000004 8-26602
014 A000005 AMERICAN EXPRESS FINANCIAL ADVOSORS JAPAN
014 B000005 8-12550
014 A000006 DELETE
015 A000001 U.S. BANK N.A.
015 B000001 C
015 C010001 ST. PAUL
015 C020001 MN
015 C030001 55101
015 C040001 1631
015 E010001 X
018 000000 Y
019 A000000 Y
019 B000000 58
019 C000000 AMEXPFUNDS
022 A000001 MORGAN (J.P.) SSECURITIES
022 B000001 13-3224016
022 C000001 12600
022 D000001 14600
022 A000002 MORGAN STANLEY & CO., INC.
022 B000002 13-2658898
<PAGE> PAGE 2
022 C000002 13300
022 D000002 13400
022 A000003 SUTRO & CO., INC.
022 B000003 94-1704902
022 C000003 6384
022 D000003 4729
022 A000004 BEAR STEARNS & CO.
022 B000004 13-3299429
022 C000004 5125
022 D000004 5097
022 A000005 PIPER JAFFRAY INC.
022 B000005 41-0953246
022 C000005 3587
022 D000005 3603
022 A000006 PAINEWEBBER INC.
022 B000006 13-2638166
022 C000006 3904
022 D000006 2000
022 A000007 WESTHOFF, CONE & HOLMSTEDT
022 B000007 N/A
022 C000007 2964
022 D000007 0
022 A000008 MILLER & SCHROEDER
022 B000008 41-0901191
022 C000008 2068
022 D000008 0
022 A000009 SHUTTUCK HAMMOND PARTNERS INC.
022 B000009 13-3707267
022 C000009 2000
022 D000009 0
022 A000010 PRAGER, MCCARTHY & SEALY
022 B000010 94-3057440
022 C000010 913
022 D000010 915
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<PAGE> PAGE 3
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<PAGE> PAGE 4
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<PAGE> PAGE 6
SIGNATURE LESLIE L. OGG
TITLE VICE PRESIDENT
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> AXP CALIFORNIA TAX EXEMPT FUND CLASS A
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-END> DEC-31-1999
<INVESTMENTS-AT-COST> 238366885
<INVESTMENTS-AT-VALUE> 237937200
<RECEIVABLES> 3735463
<ASSETS-OTHER> 14422
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 241687085
<PAYABLE-FOR-SECURITIES> 745
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 380996
<TOTAL-LIABILITIES> 381741
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 247236729
<SHARES-COMMON-STOCK> 45143734
<SHARES-COMMON-PRIOR> 47434784
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 5500955
<ACCUM-APPREC-OR-DEPREC> (430430)
<NET-ASSETS> 221083281
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 7575820
<OTHER-INCOME> 0
<EXPENSES-NET> 1148660
<NET-INVESTMENT-INCOME> 6427160
<REALIZED-GAINS-CURRENT> (60481)
<APPREC-INCREASE-CURRENT> (14494146)
<NET-CHANGE-FROM-OPS> (8127467)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 5973813
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3610531
<NUMBER-OF-SHARES-REDEEMED> 6691941
<SHARES-REINVESTED> 790360
<NET-CHANGE-IN-ASSETS> (25589059)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 1
<OVERDIST-NET-GAINS-PRIOR> 5440474
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<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
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<EXPENSE-RATIO> .84
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 2
<NAME> AXP CALIFORNIA TAX EXEMPT FUND CLASS B
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-END> DEC-31-1999
<INVESTMENTS-AT-COST> 238366885
<INVESTMENTS-AT-VALUE> 237937200
<RECEIVABLES> 3735463
<ASSETS-OTHER> 14422
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 241687085
<PAYABLE-FOR-SECURITIES> 745
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 380996
<TOTAL-LIABILITIES> 381741
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 247236729
<SHARES-COMMON-STOCK> 4129569
<SHARES-COMMON-PRIOR> 4040395
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 5500955
<ACCUM-APPREC-OR-DEPREC> (430430)
<NET-ASSETS> 20222063
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 7575820
<OTHER-INCOME> 0
<EXPENSES-NET> 1148660
<NET-INVESTMENT-INCOME> 6427160
<REALIZED-GAINS-CURRENT> (60481)
<APPREC-INCREASE-CURRENT> (14494146)
<NET-CHANGE-FROM-OPS> (8127467)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 453346
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 615261
<NUMBER-OF-SHARES-REDEEMED> 595237
<SHARES-REINVESTED> 69150
<NET-CHANGE-IN-ASSETS> (25589059)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 1
<OVERDIST-NET-GAINS-PRIOR> 5440474
<GROSS-ADVISORY-FEES> 602169
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1155016
<AVERAGE-NET-ASSETS> 20809941
<PER-SHARE-NAV-BEGIN> 5.18
<PER-SHARE-NII> .11
<PER-SHARE-GAIN-APPREC> (.28)
<PER-SHARE-DIVIDEND> .11
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 4.90
<EXPENSE-RATIO> 1.60
</TABLE>
EXHIBIT 77D
AXP California Tax-Exempt Trust Changes in investment policies for the Six-month
Period Ended 12/31/99 for: AXP CALIFORNIA TAX-EXEMPT TRUST RESOLVED, That the 5%
restriction on when-issued securities be eliminated.
[For all funds]
RESOLVED, That the Fund hereby adopts the following guidelines concerning the
lending of portfolio securities:
1. The Fund may lend its portfolio securities with a value of up to 30% of its
net assets, computed at market.
2. The Fund may not lend its portfolio securities to broker-dealers which are
affiliated persons of its investment manager or distributor except in accordance
with the terms of an order of the Securities and Exchange Commission which are
set forth in paragraph 10 below and may not lend securities unless the borrower
is a member of a national securities exchange or the NASD and meets the
following requirements as per latest public financial statements:
a. Minimum of $10 million total capital;
b. Net capital ratio of less than 10 to 1 of net capital or not less than 5% of
aggregate debt items if calculated by the alternate method; and
c. Has been approved by the President of the Fund.
or the borrower is a primary Government Securities Dealer which is not
guaranteed by its parent firm and meets the following requirements as per latest
public financial statements:
a. Maintain capital in excess of $50 million;
b. Complies with the Federal Reserve Capital Adequacy Guidelines; and
c. Has been approved by the President of the Fund.
3. The total amount of loan transactions outstanding with any one broker-dealer
on the approved list will be in accordance with a schedule to be approved by the
President of the Fund.
4. Lending activities of the Fund will be conducted in a manner to insure its
subchapter M status.
5. Amendments to the Fund's existing custodian agreement pertaining to the
lending of portfolio securities and the custodian fees for such services must be
approved by the Board of Directors.
6. Loans will be structured in a manner which will enable the Fund to call the
loan in order to vote the proxy if the Fund has knowledge of a material event to
be voted on which would affect the Fund's investment in the security loaned.
7. Loans will be made pursuant to agreements and procedures approved by the
Fund's General Counsel.
8. In addition to the above guidelines, all loans will be made in accordance
with guidelines established by the SEC and state regulatory authorities.
9. The Fund shall make all loans at competitive market rates, shall not make any
loan at rates below the minimum rates set forth in the Schedule of Rates and
shall accept only cash, U.S. Government securities or letters of credit approved
by the Fund as collateral for the securities loaned.
a. The schedule of rates is: ALL LOANS RATE Up to $25,000 250 basis points
$250,000 to $500,000 125 basis points $500,000 to $1 million 100 basis points $1
million to $4 million 25 basis points $4 million and above 10 basis points
b. If cash is received as collateral, the Fund may remit to the borrowing broker
a portion of the interest earned or the cash, and the rate charged on the loan
shall be deemed to be the rate of return earned on the cash collateral less the
portion returned to the borrowing broker.
c. If U.S. Government securities or letters of credit are received as
collateral, the rate shall be the loan premium charged by the Fund. If any
letter of credit is accepted as collateral, it shall be issued by a financial
institution which presents minimal credit risks and is rated in the top category
by Moody's Investors Service, Standard & Poor's Corporation or other major
rating services and it shall be irrevocable and contain an unqualified
commitment of the issuer to pay.
d. In determining the rate to charge a borrowing broker, the investment manager
may consider among other things the size of the loan, the projected duration of
the loan, the demand for the securities, the type of delivery and the cost to
make the loan. All loans meeting the same criteria will be loaned at the same
rate regardless of the borrower and the investment manager will inform the Fund
of the rates actually charged.
10. The Secretary shall establish a schedule for the Board to review these
requirements and conditions annually, shall maintain and preserve permanently a
copy of this resolution and shall cause a written record of each loan to be
maintained for a period of six years after the end of the year in which the loan
occurred that sets forth the number of shares loaned or the face amount of the
securities loaned, the fee received or rate of interest remitted, the terms of
the loan, and the information upon which the finding was made that a loan was
fair and reasonable and in accordance with the above procedures.
RESOLVED FURTHER, That the proper officers of the Fund be authorized and
directed to take the necessary steps to carry into effect the foregoing
resolution.
[For all funds] RESOLVED, That the Fund may invest in repurchase agreements
provided AEFC evaluates the creditworthiness of each counterparty to a
repurchase agreement and takes steps that are reasonably designed to ensure that
the repurchase agreement is fully collateralized.
