PAGE
IDS State
Tax-Exempt
Funds
1995 semiannual report
(Picture of icon: shield with U.S. enclosed)
Tax-exempt
funds from the
following states:
California
Massachusetts
Michigan
Minnesota
New York
Ohio
Distributed by
American Express
Financial Advisors Inc.
<PAGE>
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(Picture of icon: shield with U.S. enclosed)
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 reduce state tax, too, you can invest in municipal bonds in the
state you reside. Investments in municipals are 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.
Contents
From the president 3
From the portfolio manager 3
Ten largest holdings 6
Financial statements 12
Notes to financial statements 19
Investments in securities 38
Board members and officers 68
IDS mutual funds 69
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To our shareholders
(Picture of: William R. Pearce)
William R. Pearce
President of the Funds
(Picture of: Paul B. Hylle)
Paul B. Hylle
Portfolio manager
From the president
If you're an experienced investor, you know that 1995 was an unusually
strong year for the U.S. financial markets. Perhaps just as important,
you also know that history shows that bull markets don't last forever.
Though they're often unpredictable, declines - whether they're brief
or long-lasting, moderate or substantial - are always a possibility.
That fact reinforces the need for investors to review periodically their
long-term goals and assess whether their investment program remains on track
to achieving them. Your quarterly investment statements are one part of
that monitoring process. The other is a meeting with your American Express
financial advisor. That becomes even more important if there's a major
change in your financial situation or in the financial markets.
William R. Pearce
From the portfolio manager
Municipal bonds performed well during the past six months, as an overall
decline in long-term interest rates continued to spark a surging bond
market.
As a result, for the July through December 1995 period, IDS State
Tax-Exempt Funds experienced rising net asset values while providing
shareholders with largely tax-free dividends.
Unlike 1994, when rising interest rates pummeled the bond market, 1995 could
hardly have offered a better investment environment, as the favorable
forces of moderate economic growth and low inflation remained in place. For
the second half of the year, those factors were complemented by the
possibility of an agreement to eventually balance the federal budget and
willingness on the part of the Federal Reserve Board to reduce short-term
interest rates.
Rates down, bond prices up
In that positive light, the interest income provided by bonds became more
attractive to investors, and their buying drove long-term interest rates
increasingly lower. Because falling rates boost the value of previously
issued bonds, their prices rose, which in turn drove up the net asset value
of mutual funds such as these.
Our funds were particularly well-positioned to benefit from the rate decline
because of our decision to emphasize municipal bonds with longer-than-average
maturities. This strategy makes a portfolio more sensitive to interest-rate
swings. Therefore, when rates came down, the funds enjoyed enhanced
performance.
We concentrated our investments in revenue bonds, many of them for essential
services, rather than general obligation bonds. This strategy is based on
the fact that there currently is some risk of reduced federal and state
aid to local governments, which could negatively affect the credit quality
and, ultimately, the price of general obligation bonds.
The only thing to mar the otherwise positive environment was talk about the
possibility of a flat federal income tax. Because a flat tax would reduce
municipal bonds' tax-free-income advantage, municipals came under some
selling pressure at times. Our view is that major tax reform, if it ever
becomes a reality, would not occur this year.
State updates
Looking at individual states, California municipal bonds recovered well from
problems created by potential defaults in Orange and Los Angeles counties.
(IDS California Tax-Exempt Fund was largely unaffected by those events as
it held only a few bonds issued by those counties.) Bond performance in New
York and Michigan, on the other hand, was tempered by concerns about the
possibility of an over-supply of bonds. Minnesota, Ohio and Massachusetts,
however, benefited from favorable supply/demand situations.
While a repeat performance by the bond market over the second half of the
fiscal year would be most unexpected, we are encouraged by the fact that
the fundamentals that led to the market's recent success are largely
unchanged (as of mid-January). The economy continues to grow at a modest
pace; inflation remains quite well-behaved; and long-term interest rates
remain on the stable-to-declining path they've been on since late 1994.
Barring a change in those fundamentals, or an ongoing stalemate in the
balanced-budget negotiations, we look for municipal bonds to provide
positive performance in the months ahead.
Paul B. Hylle
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California
Class A
6-month performance
(All figures per share)
Net asset value (NAV)
Dec. 31, 1995 $5.36
June 30, 1995 $5.16
Increase $0.20
Distributions
July 1, 1995 - Dec. 31, 1995
From income $0.14
From capital gains $0.03
Total distributions $0.17
Total return* +7.5%**
Class B
6-month performance
(All figures per share)
Net asset value (NAV)
Dec. 31, 1995 $5.36
June 30, 1995 $5.16
Increase $0.20
Distributions
July 1, 1995 - Dec. 31, 1995
From income $0.12
From capital gains $0.03
Total distributions $0.15
Total return* +7.1%**
Class Y
6-month performance
(All figures per share)
Net asset value (NAV)
Dec. 31, 1995 $5.38
June 30, 1995 $5.15
Increase $0.23
Distributions
July 1, 1995 - Dec. 31, 1995
From income $0.15
From capital gains $0.03
Total distributions $0.18
Total return* +7.6%**
Massachusetts
Class A
6-month performance
(All figures per share)
Net asset value (NAV)
Dec. 31, 1995 $5.52
June 30, 1995 $5.27
Increase $0.25
Distributions
July 1, 1995 - Dec. 31, 1995
From income $0.14
From capital gains $ --
Total distributions $0.14
Total return* +7.4%**
Class B
6-month performance
(All figures per share)
Net asset value (NAV)
Dec. 31, 1995 $5.52
June 30, 1995 $5.27
Increase $0.25
Distributions
July 1, 1995 - Dec. 31, 1995
From income $0.12
From capital gains $ --
Total distributions $0.12
Total return* +7.0%**
Class Y
6-month performance
(All figures per share)
Net asset value (NAV)
Dec. 31, 1995 $5.54
June 30, 1995 $5.28
Increase $0.26
Distributions
July 1, 1995 - Dec. 31, 1995
From income $0.15
From capital gains $ --
Total distributions $0.15
Total return* +7.5%**
Michigan
Class A
6-month performance
(All figures per share)
Net asset value (NAV)
Dec. 31, 1995 $5.60
June 30, 1995 $5.39
Increase $0.21
Distributions
July 1, 1995 - Dec. 31, 1995
From income $0.19
From capital gains $0.03
Total distributions $0.22
Total return* +8.2%**
Class B
6-month performance
(All figures per share)
Net asset value (NAV)
Dec. 31, 1995 $5.60
June 30, 1995 $5.39
Increase $0.21
Distributions
July 1, 1995 - Dec. 31, 1995
From income $0.17
From capital gains $0.03
Total distributions $0.20
Total return* +7.8%**
Class Y
6-month performance
(All figures per share)
Net asset value (NAV)
Dec. 31, 1995 $5.62
June 30, 1995 $5.41
Increase $0.21
Distributions
July 1, 1995 - Dec. 31, 1995
From income $0.19
From capital gains $0.03
Total distributions $0.22
Total return* +8.2%**
*The prospectus discusses the effect of sales charges, if any, on the
various classes.
**The total return is a hypothetical investment in the Fund with all
distributions reinvested.
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Minnesota
Class A
6-month performance
(All figures per share)
Net asset value (NAV)
Dec. 31, 1995 $5.41
June 30, 1995 $5.19
Increase $0.22
Distributions
July 1, 1995 - Dec. 31, 1995
From income $0.15
From capital gains $ --
Total distributions $0.15
Total return* +7.2%**
Class B
6-month performance
(All figures per share)
Net asset value (NAV)
Dec. 31, 1995 $5.41
June 30, 1995 $5.19
Increase $0.22
Distributions
July 1, 1995 - Dec. 31, 1995
From income $0.13
From capital gains $ --
Total distributions $0.13
Total return* +6.9%**
Class Y
6-month performance
(All figures per share)
Net asset value (NAV)
Dec. 31, 1995 $5.42
June 30, 1995 $5.20
Increase $0.22
Distributions
July 1, 1995 - Dec. 31, 1995
From income $0.16
From capital gains $ --
Total distributions $0.16
Total return* +7.4%**
New York
Class A
6-month performance
(All figures per share)
Net asset value (NAV)
Dec. 31, 1995 $5.29
June 30, 1995 $5.09
Increase $0.20
Distributions
July 1, 1995 - Dec. 31, 1995
From income $0.15
From capital gains $ --
Total distributions $0.15
Total return* +7.0%**
Class B
6-month performance
(All figures per share)
Net asset value (NAV)
Dec. 31, 1995 $5.29
June 30, 1995 $5.09
Increase $0.20
Distributions
July 1, 1995 - Dec. 31, 1995
From income $0.13
From capital gains $ --
Total distributions $0.13
Total return* +6.6%**
Class Y
6-month performance
(All figures per share)
Net asset value (NAV)
Dec. 31, 1995 $5.31
June 30, 1995 $5.11
Increase $0.20
Distributions
July 1, 1995 - Dec. 31, 1995
From income $0.15
From capital gains $ --
Total distributions $0.15
Total return* +7.0%**
Ohio
Class A
6-month performance
(All figures per share)
Net asset value (NAV)
Dec. 31, 1995 $5.50
June 30, 1995 $5.28
Increase $0.22
Distributions
July 1, 1995 - Dec. 31, 1995
From income $0.14
From capital gains $0.01
Total distributions $0.15
Total return* +7.2%**
Class B
6-month performance
(All figures per share)
Net asset value (NAV)
Dec. 31, 1995 $5.50
June 30, 1995 $5.28
Increase $0.22
Distributions
July 1, 1995 - Dec. 31, 1995
From income $0.12
From capital gains $0.01
Total distributions $0.13
Total return* +6.8%**
Class Y
6-month performance
(All figures per share)
Net asset value (NAV)
Dec. 31, 1995 $5.50
June 30, 1995 $5.28
Increase $0.22
Distributions
July 1, 1995 - Dec. 31, 1995
From income $0.15
From capital gains $0.01
Total distributions $0.16
Total return* +7.3%**
*The prospectus discusses the effect of sales charges, if any, on the
various classes.
**The total return is a hypothetical investment in the Fund with all
distributions reinvested.
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<TABLE>
<CAPTION>
The Fund's ten largest holdings
IDS California Tax-Exempt Fund
(pie chart) The ten holdings listed here make up 26.23% of the Fund's net assets
_____________________________________________________________________________________
Percent Value
(of Fund's net assets) (as of Dec. 31, 1995)
_____________________________________________________________________________________
<S> <C> <C>
Anaheim Public Finance Authority Revenue
2nd Series Electric Utilities San Juan
5.75% 2022 4.50% $11,322,333
Long Beach Harbor Revenue Bonds Series 1989A A.M.T.
7.25% 2019 3.00 7,549,990
Sacramento Municipal Utility District Series R
6.00% 2015-2017 2.99 7,512,645
Los Angeles Department of Water & Power Electric Plant
Revenue Bonds Series 1990
7.125% 2030 2.90 7,302,555
Statewide Community Development Authority Revenue
Certificate of Participation St. Joseph Health System Group
6.50% 2015 2.37 5,952,705
Los Angeles Convention & Exhibition Center
Pre-Refunded Certificate of Participation Series 1989A
7.00% 2020 2.21 5,562,900
Statewide Community Development Authority Health Facilities
Revenue Bonds Unihealth America Series 1993A Inverse Floater
7.215% 2011 2.15 5,400,000
University of Southern California Educational Facilities Authority
Pre-Refunded Revenue Bonds Series 1989B
6.75% 2015 2.15 5,396,700
San Diego Regional Transportation Commission Sales Tax
Pre-Refunded Revenue Bonds Limited Tax Series 1989A
6.25% 2008 2.14 5,368,720
Rancho Mirage Joint Powers Finance Authority Certificate of Participation
Eisenhower Memorial Hospital
7.00% 2022 1.82 4,584,518
Note: Certain of the Fund's investment income may be subject to the Alternative Minimum Tax.
/TABLE
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<TABLE>
<CAPTION>
The Fund's ten largest holdings
IDS Massachusetts Tax-Exempt Fund
(pie chart) The ten holdings listed here make up 27.19% of the Fund's net assets
_____________________________________________________________________________________
Percent Value
(of Fund's net assets)(as of Dec. 31, 1995)
_____________________________________________________________________________________
<S> <C> <C>
Boston City Hospital Refunding Revenue Bonds
Series B
5.75% 2023 3.92% $2,989,560
Health & Educational Facilities Authority
Revenue Bonds Suffolk University Series B
6.35% 2022 3.46 2,632,325
Health & Educational Facilities Authority
Revenue Bonds Cape Cod Health System Series A
5.25% 2021 3.17 2,417,450
Health & Educational Facilities Authority
Revenue Bonds Boston College Series J
6.625% 2021 2.87 2,187,240
Industrial Finance Agency Pollution Control
Refunding Revenue Bonds Eastern Edison Series 1993
5.875% 2008 2.64 2,009,180
Health & Educational Facilities Authority
Revenue Bonds Charlton Memorial Series 1991B
7.25% 2013 2.47 1,878,258
Bay Transportation Authority General Transportation System
Refunding Bonds Series 1992B
6.20% 2016 2.19 1,671,870
Municipal Wholesale Electric Power Supply System
Refunding Revenue Bonds Series B
4.75% 2011 2.19 1,666,875
Industrial Finance Agency Resource Recovery
Revenue Bonds SEMASS Series 1991A
9.00% 2015 2.18 1,658,670
Municipal Wholesale Electric Power Supply System
Pre-Refunded Revenue Bonds Series 1992B
6.75% 2017 2.10 1,602,311
Note: Certain of the Fund's investment income may be subject to the Alternative Minimum Tax.
</TABLE>
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<TABLE>
<CAPTION>
The Fund's ten largest holdings
IDS Michigan Tax-Exempt Fund
(pie chart) The ten holdings listed here make up 25.66% of the Fund's net assets
______________________________________________________________________________________________
Percent Value
(of Fund's net assets) (as of Dec. 31, 1995)
______________________________________________________________________________________________
<S> <C> <C>
Romulus Township School District Unlimited Tax
General Obligation Refunding Bonds
5.75% 2022 3.06% $2,550,450
State Housing Development Authority Rental Housing
Refunding Revenue Bonds Series B
5.70% 2012 3.00 2,503,600
State Building Authority Refunding Revenue Bonds
Series 1991I
6.25% 2020 2.80 2,337,038
Eaton County Water System Limited Tax
General Obligation Bonds
5.00% 2013 2.58 2,149,972
N.I.C.E. Community School District Unlimited Tax
General Obligation Bonds
5.25% 2020 2.48 2,065,833
State Hospital Finance Authority Hospital Pre-Refunded Revenue Bonds
McLaren Obligated Group Series 1991A
7.50% 2021 2.47 2,061,133
Detroit Sewer Disposal Revenue Bonds
5.70% 2023 2.44 2,030,740
Grand Ledge Public Schools Unlimited Tax General Obligation
Refunding Bonds Counties of Eaton, Clinton & Ionia Series 1995
5.375% 2024 2.38 1,981,160
Monroe County Pollution Control Revenue Bonds
Detroit Edison Fermi 2 Plants Series CC A.M.T.
7.50% 2019 2.37 1,978,130
State Strategic Fund Limited Tax Obligation
Refunding Revenue Bonds Ford Motor Series 1991A
7.10% 2006 2.27 1,896,395
Note: Certain of the Fund's investment income may be subject to the Alternative Minimum Tax.
/TABLE
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<TABLE>
<CAPTION>
The Fund's ten largest holdings
IDS Minnesota Tax-Exempt Fund
(pie chart) The ten holdings listed here make up 32.94% of the Fund's net assets
____________________________________________________________________________________
Percent Value
(of Fund's net assets) (as of Dec. 31, 1995)
____________________________________________________________________________________
<S> <C> <C>
St. Paul & Minneapolis Housing & Redevelopment Authority
Health Care Facility Revenue Bonds
Group Health Plan Series 1992
6.75% 2013 2.66% $11,302,620
Minneapolis & St. Paul Housing & Redevelopment Authority
Health Care System Revenue Bonds Healthspan
Series 1993
4.75% 2018 2.59 10,996,440
State General Obligation Various Purpose Pre-Refunded Bonds
Series 1991
6.70% 2011 2.11 8,957,120
State General Obligation Various Purpose Pre-Refunded Bonds
Series 1990
7.00% 2009 2.06 8,765,310
Anoka County General Obligation Capital Improvement
Revenue Bonds Series 1989B
7.00% 2007-2010 2.01 8,540,526
St. Paul Housing & Redevelopment Authority Sales Tax
Revenue Bonds Civic Center
5.55% 2023 2.00 8,512,070
Hennepin County Lease Revenue
Certificate of Participation Series 1991
6.80% 2017 1.88 7,988,340
Western Minnesota Municipal Power Agency Supply
Refunding Revenue Bonds Series 1987A
7.00% 2013 1.79 7,621,492
Edina Multi-family Housing Revenue Bonds
Walker Assisted Living Series 1991
9.00% 2031 1.75 7,466,815
Faribault Rice & Goodhue County Independent School District #656
General Obligation School Building Bonds
Series 1995
5.75% 2015 1.68 7,127,355
Note: Certain of the Fund's investment income may be subject to the Alternative Minimum Tax.
/TABLE
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<TABLE>
<CAPTION>
The Fund's ten largest holdings
IDS New York Tax-Exempt Fund
(pie chart) The ten holdings listed here make up 32.94% of the Fund's net assets
______________________________________________________________________________________
Percent Value
(of Fund's net assets)(as of Dec. 31, 1995)
______________________________________________________________________________________
<S> <C> <C>
State Energy Research & Development Authority
Electric Facility Revenue Bonds Consolidated Edison
Series 1990A A.M.T.
7.50% 2025 4.27% $5,469,800
State Urban Development Correction Facility
Pre-Refunded Revenue Bonds Series 1
7.50% 2020 4.01 5,132,790
United Nations Development Senior Lien
Refunding Revenue Bonds Series 1992A
6.00% 2026 3.59 4,591,395
State Local Government Assistance Pre-Refunded Bonds
Series 1991A
7.00% 2016 3.58 4,585,200
State Mortgage Agency Homeowner Mortgage Revenue Bonds
Series TT
7.50% 2015 3.36 4,302,640
State Medical Care Facility Finance Agency Revenue Bonds
Hospital & Nursing Series B
6.25% 2025 3.01 3,848,019
Battery Park City Authority Senior Refunding Revenue Bonds
Series 1993A
5.25% 2017 2.95 3,769,280
State Dormitory Authority City University System
Pre-Refunded Revenue Bonds
8.125% 2017 2.88 3,680,602
Triborough Bridge & Tunnel Authority General Purpose
Pre-Refunded Revenue Bonds Series S
7.00% 2021 2.67 3,413,670
State Environmental Facility State Water & Pollution Control
Revolving Fund Revenue Bonds New York City Municipal Water
Finance Authority Series 1990A
7.50% 2012 2.62 3,352,320
Note: Certain of the Fund's investment income may be subject to the Alternative Minimum Tax.
/TABLE
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<TABLE>
<CAPTION>
The Fund's ten largest holdings
IDS Ohio Tax-Exempt Fund
(pie chart) The ten holdings listed here make up 24.98% of the Funds's net assets
___________________________________________________________________________________________
Percent Value
(of Fund's net assets)(as of Dec. 31, 1995)
___________________________________________________________________________________________
<S> <C> <C>
State Air Quality Development Authority
Refunding Revenue Bonds
Series 1994 A.M.T.
6.375% 2029 2.80% $2,187,440
Lakota Local School District Unlimited Tax Improvement
General Obligation Bonds
6.25% 2014 2.77 2,164,300
Erie County Hospital Improvement Refunding Revenue Bonds
Firelands Community Hospital Series 1992
6.75% 2015 2.70 2,108,520
State Municipal Electric Generation Agency
Joint Venture #5 Revenue Bonds
5.375% 2024 2.53 1,981,240
State Valley School District School Improvement
Unlimited Tax General Obligation Bonds
Counties of Adams & Highland Series 1995
5.25% 2021 2.53 1,980,340
Lorain County Hospital Facilities Refunding Revenue Bonds
EMH Regional Medical Center Series 1995
5.375% 2021 2.53 1,973,720
Lucas County Hospital Refunding Revenue Bonds
St. Vincent's Medical Center Series B
5.25% 2020 2.50 1,956,600
Butler County Hospital Facility Improvement
Refunding Revenue Bonds
7.50% 2010 2.38 1,858,798
Franklin County Convention Facilities Authority
Tax & Lease Revenue Anticipation Pre-Refunded Bonds
7.00% 2019 2.19 1,710,840
State Housing Finance Agency Mortgage Revenue Bonds
Aristocrat South Board & Care Series 1991A A.M.T.
7.30% 2031 2.05 1,600,260
Note: Certain of the Fund's investment income may be subject to the Alternative Minimum Tax.
/TABLE
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<TABLE>
<CAPTION>
Financial statements
Statements of assets and liabilities
IDS California Tax-Exempt Trust
IDS Special Tax-Exempt Series Trust
Dec. 31, 1995
_____________________________________________________________________________________________________________________________
Assets
_____________________________________________________________________________________________________________________________
California Massachusetts Michigan
Tax-Exempt Tax-Exempt Tax-Exempt
Fund Fund Fund
(Unaudited) (Unaudited) (Unaudited)
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C>
Investments in securities, at value (Note 1)
(identified cost $220,122,536, $68,604,612
and $76,000,381) $244,563,558 $74,522,610 $83,855,178
Cash in bank on demand deposit 2,383,251 121,632 --
Accrued interest receivable 4,566,525 1,558,488 1,252,403
Receivable for investment securities sold 53,250 12,245 13,594
_____________________________________________________________________________________________________________________________
Total assets 251,566,584 76,214,975 85,121,175
_____________________________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________________________
Disbursements in excess of cash on demand deposit -- -- 111,208
Dividends payable to shareholders 70,868 21,130 23,870
Payable for investment securities purchased -- 11,813 952,840
Accrued investment management services fee 6,433 1,952 2,152
Accrued distribution fee 155 160 71
Accrued service fee 2,395 727 801
Accrued transfer agency fee 531 257 235
Accrued administrative services fee 547 166 183
Other accrued expenses 19,312 2,727 14,599
_____________________________________________________________________________________________________________________________
Total liabilities 100,241 38,932 1,105,959
_____________________________________________________________________________________________________________________________
Net assets applicable to outstanding shares $251,466,343 $76,176,043 $84,015,216
_____________________________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________________________
Shares of beneficial interest - $.01 par value,
unlimited number of shares authorized $ 468,751 $ 138,090 $ 149,928
Additional paid-in capital 232,954,580 71,205,016 77,087,727
Undistributed net investment income 1,551 6,316 2,002
Accumulated net realized loss (Notes 1 and 6) (6,621,496) (1,134,268) (1,127,239)
Unrealized appreciation (Note 5) 24,662,957 5,960,889 7,902,798
_____________________________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding shares $251,466,343 $76,176,043 $84,015,216
_____________________________________________________________________________________________________________________________
Net assets applicable to outstanding shares: Class A $247,649,098 $72,208,314 $82,260,267
Class B $ 3,816,158 $ 3,966,638 $ 1,753,854
Class Y $ 1,087 $ 1,091 $ 1,095
Outstanding shares of beneficial interest: Class A shares 46,163,339 13,089,697 14,679,619
Class B shares 711,585 719,136 312,951
Class Y shares 202 197 195
Net asset value per share: Class A $ 5.36 $ 5.52 $ 5.60
Class B $ 5.36 $ 5.52 $ 5.60
Class Y $ 5.38 $ 5.54 $ 5.62
See accompanying notes to financial statements.
<PAGE>
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Financial statements
Statements of assets and liabilities
IDS California Tax-Exempt Trust
IDS Special Tax-Exempt Series Trust
Dec. 31, 1995
_____________________________________________________________________________________________________________________________
Assets
_____________________________________________________________________________________________________________________________
Minnesota New York Ohio
Tax-Exempt Tax-Exempt Tax-Exempt
Fund Fund Fund
(Unaudited) (Unaudited) (Unaudited)
_____________________________________________________________________________________________________________________________
Investments in securities, at value (Note 1)
(identified cost $384,807,429, $115,977,638
and $70,386,470) $416,757,102 $127,011,195 $76,756,039
Cash in bank on demand deposit -- -- 346,484
Accrued interest receivable 8,674,350 2,529,341 1,003,265
Receivable for investment securities sold 127,616 30,656 99,896
_____________________________________________________________________________________________________________________________
Total assets 425,559,068 129,571,192 78,205,684
_____________________________________________________________________________________________________________________________
Liabilities
_____________________________________________________________________________________________________________________________
Disbursements in excess of cash on demand deposit 284,973 178,714 --
Dividends payable to shareholders 127,891 37,142 22,196
Payable for investment securities purchased -- 1,404,435 --
Accrued investment management services fee 10,660 3,278 1,996
Accrued distribution fee 216 161 70
Accrued service fee 4,057 1,221 743
Accrued transfer agency fee 1,292 395 204
Accrued administrative services fee 880 279 170
Other accrued expenses 45,592 8,782 17,496
_____________________________________________________________________________________________________________________________
Total liabilities 475,561 1,634,407 42,875
_____________________________________________________________________________________________________________________________
Net assets applicable to outstanding shares $425,083,507 $127,936,785 $78,162,809
_____________________________________________________________________________________________________________________________
Represented by
_____________________________________________________________________________________________________________________________
Shares of beneficial interest - $.01 par value,
unlimited number of shares authorized $ 785,888 $ 241,888 $ 142,066
Additional paid-in capital 400,999,790 119,717,729 73,284,851
Undistributed net investment income 10,824 28 488
Accumulated net realized loss (Notes 1 and 6) (8,919,923) (3,183,414) (1,679,941)
Unrealized appreciation (Note 5) 32,206,928 11,160,554 6,415,345
_____________________________________________________________________________________________________________________________
Total -- representing net assets applicable to outstanding shares $425,083,507 $127,936,785 $78,162,809
_____________________________________________________________________________________________________________________________
Net assets applicable to outstanding shares: Class A $415,668,794 $124,008,541 $76,447,143
Class B $ 9,413,624 $ 3,927,167 $ 1,714,583
Class Y $ 1,089 $ 1,077 $ 1,083
Outstanding shares of beneficial interest: Class A shares 76,848,109 23,446,110 13,894,757
Class B shares 1,740,499 742,501 311,634
Class Y shares 201 203 197
Net asset value per share: Class A $ 5.41 $ 5.29 $ 5.50
Class B $ 5.41 $ 5.29 $ 5.50
Class Y $ 5.42 $ 5.31 $ 5.50
See accompanying notes to financial statements.
<PAGE>
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Financial statements
Statements of operations
IDS California Tax-Exempt Trust
IDS Special Tax-Exempt Series Trust
Six months ended Dec. 31, 1995
_____________________________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________________________
California Massachusetts Michigan
Tax-Exempt Tax-Exempt Tax-Exempt
Fund Fund Fund
(Unaudited) (Unaudited) (Unaudited)
_____________________________________________________________________________________________________________________________
Income:
Interest $7,433,868 $2,201,533 $2,495,452
_____________________________________________________________________________________________________________________________
Expenses (Note 2):
Investment management services fee 567,973 169,947 189,521
Distribution fee - Class B 11,062 10,916 5,209
Transfer agency fee 48,822 23,198 21,450
Incremental transfer agency fee - Class B 76 65 30
Service fee
Class A 209,358 60,516 69,244
Class B 2,581 2,547 1,207
Administrative services fee 48,565 14,463 16,130
Compensation of board members 2,890 4,800 4,460
Compensation of officers 1,537 453 429
Custodian fees 7,288 2,012 6,132
Postage 7,137 3,868 2,847
Registration fees 8,625 1,782 4,478
Reports to shareholders 3,079 1,860 1,220
Audit fees 8,250 7,625 7,793
Administrative 1,761 2,639 819
Other 1,900 1,850 1,392
_____________________________________________________________________________________________________________________________
Total expenses 930,904 308,541 332,361
Earnings credits on cash balances (Note 2) (9,772) (1,787) (6,046)
_____________________________________________________________________________________________________________________________
Total net expenses 921,132 306,754 326,315
_____________________________________________________________________________________________________________________________
Investment income -- net 6,512,736 1,894,779 2,169,137
_____________________________________________________________________________________________________________________________
Realized and unrealized gain -- net
_____________________________________________________________________________________________________________________________
Net realized gain on security transactions (Note 3) 702,632 48,483 323,823
Net realized gain on closed interest rate futures contracts 1,340,518 379,851 426,623
_____________________________________________________________________________________________________________________________
Net realized gain on investments 2,043,150 428,334 750,446
Net change in unrealized appreciation or depreciation 9,022,663 2,905,054 3,449,171
_____________________________________________________________________________________________________________________________
Net gain on investments 11,065,813 3,333,388 4,199,617
_____________________________________________________________________________________________________________________________
Net increase in net assets resulting from operations $17,578,549 $ 5,228,167 $ 6,368,754
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
<PAGE>
PAGE
Financial statements
Statements of operations
IDS California Tax-Exempt Trust
IDS Special Tax-Exempt Series Trust
Six months ended Dec. 31, 1995
_____________________________________________________________________________________________________________________________
Investment income
_____________________________________________________________________________________________________________________________
Minnesota New York Ohio
Tax-Exempt Tax-Exempt Tax-Exempt
Fund Fund Fund
(Unaudited) (Unaudited) (Unaudited)
_____________________________________________________________________________________________________________________________
Income:
Interest $13,143,038 $3,907,074 $2,311,120
_____________________________________________________________________________________________________________________________
Expenses (Note 2):
Investment management services fee 947,053 291,260 177,433
Distribution fee - Class B 24,387 11,258 4,080
Transfer agency fee 118,287 36,350 20,991
Incremental transfer agency fee - Class B 195 84 39
Service fee
Class A 353,468 105,691 65,004
Class B 5,690 2,627 952
Administrative services fee 78,272 24,788 15,101
Compensation of board members 12,912 3,765 3,708
Compensation of officers 1,656 673 396
Custodian fees 3,039 2,389 8,127
Postage 17,847 4,191 2,500
Registration fees 6,504 5,820 15,825
Reports to shareholders 6,042 2,141 1,395
Audit fees 8,750 8,250 7,625
Administrative 1,430 934 631
Other 482 1,686 3,704
_____________________________________________________________________________________________________________________________
Total expenses 1,586,014 501,907 327,511
Earnings credits on cash balances (Note 2) (15,464) (2,221) (8,031)
_____________________________________________________________________________________________________________________________
Total net expenses 1,570,550 499,686 319,480
_____________________________________________________________________________________________________________________________
Investment income -- net 11,572,488 3,407,388 1,991,640
_____________________________________________________________________________________________________________________________
Realized and unrealized gain (loss) -- net
_____________________________________________________________________________________________________________________________
Net realized gain (loss) on security transactions (Note 3) 575,159 96,544 (380,153)
Net realized gain on closed interest rate futures contracts 2,229,765 744,270 404,698
______________________________________________________________________________________________________________________________
Net realized gain on investments 2,804,924 840,814 24,545
Net change in unrealized appreciation or depreciation 14,586,233 4,024,707 3,269,084
_____________________________________________________________________________________________________________________________
Net gain on investments 17,391,157 4,865,521 3,293,629
_____________________________________________________________________________________________________________________________
Net increase in net assets resulting from operations $28,963,645 $8,272,909 $5,285,269
_____________________________________________________________________________________________________________________________
</TABLE>
See accompanying notes to financial statements.
<PAGE>
PAGE
<TABLE>
<CAPTION>
Financial statements
Statements of changes in net assets
IDS California Tax-Exempt Trust
IDS Special Tax-Exempt Series Trust
_____________________________________________________________________________________________________________________________
Operations and distributions
_____________________________________________________________________________________________________________________________
California Tax-Exempt Fund Massachusetts Tax-Exempt Fund
Six months ended Year ended Six months ended Year ended
12/31/95 6/30/95 12/31/95 6/30/95
(Unaudited) (Unaudited)
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Investment income -- net $ 6,512,736 $ 14,306,975 $ 1,894,779 $ 3,941,356
Net realized gain (loss) on investments 2,043,150 (4,035,813) 428,334 (1,258,540)
Net change in unrealized appreciation or depreciation 9,022,663 4,486,171 2,905,054 1,474,819
_____________________________________________________________________________________________________________________________
Net increase in net assets resulting
from operations 17,578,549 14,757,333 5,228,167 4,157,635
_____________________________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income
Class A (6,445,860) (14,290,556) (1,823,395) (3,926,867)
Class B (67,957) (16,509) (65,039) (14,479)
Class Y (29) (11) (29) (10)
Net realized gain on securities
Class A (1,353,174) -- -- --
Class B (20,647) -- -- --
Class Y (6) -- -- --
_____________________________________________________________________________________________________________________________
Total distributions (7,887,673) (14,307,076) (1,888,463) (3,941,356)
_____________________________________________________________________________________________________________________________
Share transactions (Note 4)
_____________________________________________________________________________________________________________________________
Proceeds from sales
Class A shares (Note 2) 11,662,959 22,693,617 5,430,762 10,352,839
Class B shares 1,877,364 2,091,151 2,181,007 1,991,573
Class Y shares -- 1,020 -- 1,021
Reinvestment of distributions at net asset value
Class A shares 5,588,919 9,854,175 1,424,719 3,023,192
Class B shares 78,727 13,558 55,017 12,005
Class Y shares 35 11 28 10
Payments for redemptions
Class A shares (18,479,054) (48,910,065) (6,109,914) (17,395,360)
Class B shares (Note 2) (316,363) (27,600) (258,028) (137,393)
_____________________________________________________________________________________________________________________________
Increase (decrease) in net assets from
share transactions 412,587 (14,284,133) 2,723,591 (2,152,113)
_____________________________________________________________________________________________________________________________
Total increase (decrease) in net assets 10,103,463 (13,833,876) 6,063,295 (1,935,834)
Net assets at beginning of period 241,362,880 255,196,756 70,112,748 72,048,582
_____________________________________________________________________________________________________________________________
Net assets at end of period
(including undistributed net investment income
of $1,551 and $2,661 for IDS California, and
$6,316 and $0 for IDS Massachusetts) $251,466,343 $241,362,880 $76,176,043 $70,112,748
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
<PAGE>
PAGE
Financial statements
Statements of changes in net assets
IDS California Tax-Exempt Trust
IDS Special Tax-Exempt Series Trust
_____________________________________________________________________________________________________________________________
Operations and distributions
______________________________________________________________________________________________________________________________
Michigan Tax-Exempt Fund Minnesota Tax-Exempt Fund
Six months ended Year ended Six months ended Year ended
12/31/95 6/30/95 12/31/95 6/30/95
(Unaudited) (Unaudited)
______________________________________________________________________________________________________________________________
Investment income -- net $ 2,169,137 $ 4,389,687 $ 11,572,488 $ 23,929,961
Net realized gain (loss) on investments 750,446 (518,081) 2,804,924 (9,227,466)
Net change in unrealized appreciation or depreciation 3,449,171 1,141,073 14,586,233 10,495,908
_____________________________________________________________________________________________________________________________
Net increase in net assets resulting
from operations 6,368,754 5,012,679 28,963,645 25,198,403
_____________________________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income
Class A (2,137,023) (4,384,843) (11,412,215) (23,900,319)
Class B (32,281) (4,833) (160,111) (29,555)
Class Y (29) (11) (30) (11)
Net realized gain
Class A (1,011,041) (36,289) (300,980) --
Class B (21,404) -- (6,714) --
Class Y (13) -- -- --
_____________________________________________________________________________________________________________________________
Total distributions (3,201,791) (4,425,976) (11,880,050) (23,929,885)
_____________________________________________________________________________________________________________________________
Share transactions (Note 4)
_____________________________________________________________________________________________________________________________
Proceeds from sales
Class A shares (Note 2) 4,088,140 12,053,759 20,657,321 57,985,486
Class B shares 705,093 997,872 5,180,916 4,124,509
Class Y shares -- 1,020 -- 1,020
Reinvestment of distributions at net asset value
Class A shares 2,414,960 3,277,481 9,462,175 18,880,977
Class B shares 46,945 4,262 146,521 24,745
Class Y shares 42 11 30 11
Payment for redemptions
Class A shares (4,864,892) (15,101,862) (34,062,564) (83,747,345)
Class B shares (Note 2) (40,742) (3,353) (276,685) (36,354)
_____________________________________________________________________________________________________________________________
Increase (decrease) in net assets from
share transactions 2,349,546 1,229,190 1,107,714 (2,766,951)
______________________________________________________________________________________________________________________________
Total increase (decrease) in net assets 5,516,509 1,815,893 18,191,309 (1,498,433)
Net assets at beginning of period 78,498,707 76,682,814 406,892,198 408,390,631
_____________________________________________________________________________________________________________________________
Net assets at end of period
(including undistributed net investment income
of $2,002 and $2,198 for IDS Michigan, and
$10,824 and $10,692 for IDS Minnesota) $84,015,216 $78,498,707 $425,083,507 $406,892,198
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
<PAGE>
PAGE
Financial statements
Statements of changes in net assets
IDS California Tax-Exempt Trust
IDS Special Tax-Exempt Series Trust
_____________________________________________________________________________________________________________________________
Operations and distributions
_____________________________________________________________________________________________________________________________
New York Tax-Exempt Fund Ohio Tax-Exempt Fund
Six months ended Year ended Six months ended Year ended
12/31/95 6/30/95 12/31/95 6/30/95
(Unaudited) (Unaudited)
_____________________________________________________________________________________________________________________________
Investment income -- net $ 3,407,388 $ 7,058,619 $1,991,640 $ 4,061,670
Net realized gain (loss) on investments 840,814 (2,824,160) 24,545 (1,262,593)
Net change in unrealized appreciation or depreciation 4,024,707 1,994,739 3,269,084 1,448,594
_____________________________________________________________________________________________________________________________
Net increase in net assets resulting
from operations 8,272,909 6,229,198 5,285,269 4,247,671
_____________________________________________________________________________________________________________________________
Distributions to shareholders from:
Net investment income
Class A (3,334,799) (7,042,080) (1,931,264) (4,092,348)
Class B (72,531) (16,527) (24,492) (5,227)
Class Y (30) (12) (28) (11)
Net realized gain
Class A -- -- (133,990) --
Class B -- -- (3,014) --
Class Y -- -- (2) --
_____________________________________________________________________________________________________________________________
Total distributions (3,407,360) (7,058,619) (2,092,790) (4,097,586)
_____________________________________________________________________________________________________________________________
Share transactions (Note 4)
_____________________________________________________________________________________________________________________________
Proceeds from sales
Class A shares (Note 2) 4,622,404 16,050,177 3,254,777 12,347,956
Class B shares 2,051,227 1,923,002 980,279 715,678
Class Y shares -- 1,020 -- 1,020
Reinvestment of distributions at net asset value
Class A shares 2,693,858 5,362,620 1,630,433 3,162,750
Class B shares 67,491 12,791 24,325 3,706
Class Y shares 30 12 30 11
Payments for redemptions
Class A shares (7,748,169) (21,072,998) (4,954,476) (14,135,624)
Class B shares (Note 2) (199,127) (22,313) (45,534) (21)
_____________________________________________________________________________________________________________________________
Increase in net assets from
share transactions 1,487,714 2,254,311 889,834 2,095,476
_____________________________________________________________________________________________________________________________
Total increase in net assets 6,353,263 1,424,890 4,082,313 2,245,561
Net assets at beginning of period 121,583,522 120,158,632 74,080,496 71,834,935
_____________________________________________________________________________________________________________________________
Net assets at end of period
(including undistributed net investment income
of $28 and $0 for IDS New York, and $488
and $(35,368) for IDS Ohio) $127,936,785 $121,583,522 $78,162,809 $74,080,496
_____________________________________________________________________________________________________________________________
See accompanying notes to financial statements.
/TABLE
<PAGE>
PAGE
Notes to financial statements
IDS California Tax-Exempt Trust
IDS Special Tax-Exempt Series Trust
(Unaudited as to Dec. 31, 1995)
______________________________________________________________________________
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).
Each Fund's goal is to provide a high level of income generally exempt from
federal income tax as well as from the respective state and local income tax.
A portion of each Fund's assets may be invested in bonds whose interest is
subject to the alternative minimum tax computation. 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) differs 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 Funds are summarized below:
Use of estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of increase and decrease in net assets from operations
during the period. Actual results could differ from those estimates.
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. 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.
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 purchased 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 year from net investment income or net realized gains may differ
from their ultimate characterization for federal income tax purposes. Also,
due to the timing of dividend distributions, the fiscal year in which amounts
are distributed may differ from the year that the income or realized gains
(losses) were recorded by the Fund.
Dividends to shareholders
Dividends from net investment income, declared daily and paid monthly, are
reinvested in additional shares of each Fund at net asset value or payable in
cash. Capital gains, when available, are distributed along with the last
income dividend at the end of the calendar year.
Other
Security transactions are accounted for on the date securities are purchased
or sold. Interest income, including level-yield amortization of premium and
discount, is accrued daily.
At Dec. 31, 1995, AEFC owned 202 Class Y shares for IDS California, 197 for
IDS Massachusetts, 195 for IDS Michigan, 201 for IDS Minnesota, 203 for IDS
New York and 197 for IDS Ohio tax-exempt funds.
______________________________________________________________________________
2. Expenses and sales charges
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, AEFC determines which securities will be purchased, held or sold.
The management fee is a percentage of each Fund's average daily net assets in
reducing percentages from 0.47% to 0.38% annually.
Under an Administrative Services Agreement, each Fund pays AEFC 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, AEFC maintains shareholder
accounts and records. Each Fund pays AEFC 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 a Plan and Agreement of Distribution, 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 received by American Express Financial Advisors Inc. for
distributing the Funds' shares for the six months ended Dec. 31, 1995, are as
follows:
Class A Class B
IDS California $383,722 $4,852
IDS Massachusetts 136,301 33
IDS Michigan 112,279 390
IDS Minnesota 544,054 3,815
IDS New York 123,478 1,878
IDS Ohio 88,560 --
During the six months ended Dec. 31, 1995, the Funds' custodian and transfer
agency fees were reduced by $9,772 for IDS California, $1,787 for IDS
Massachusetts, $6,046 for IDS Michigan, $15,464 for IDS Minnesota, $2,221 for
IDS New York and $8,031 for IDS Ohio tax-exempt funds as a result of earnings
credits from overnight cash balances.
Each Fund also has a retirement plan for its independent board members. Upon
retirement, board members receive monthly payments equal to one-half of the
retainer fee for as many months as they served as board members 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 board members serve on the
board. The retirement plan expense amounted to $1,109 for IDS Massachusetts,
$1,117 for IDS Michigan, $1,109 for IDS New York and $1,160 for IDS Ohio tax-
exempt funds for the six months ended Dec. 31, 1995.
______________________________________________________________________________
3. Securities transactions
For the six months ended Dec. 31, 1995, cost of purchases and proceeds from
sales (other than short-term obligations) aggregated $18,187,491 and
$19,686,507 for IDS California, $4,358,733 and $565,300 for IDS Massachusetts,
$17,788,323 and $15,261,473 for IDS Michigan, $19,799,203 and $18,264,877 for
IDS Minnesota, $5,913,436 and $2,918,520 for IDS New York and $12,280,047 and
$11,348,991 for IDS Ohio tax-exempt funds. Realized gains and losses are
determined on an identified cost basis.
<PAGE>
4. Share transactions
Transactions in shares of each Fund for the periods indicated are as follows:
California Tax-Exempt Fund
Six months ended Dec. 31, 1995
Class A Class B Class Y
_______________________________________________________________
Sold 2,225,194 360,953 --
Issued for reinvested 1,064,286 14,954 6
distributions
Redeemed (3,537,501) (60,960) --
_______________________________________________________________
Net increase
(decrease) (248,021) 314,947 6
_______________________________________________________________
Year ended June 30, 1995
Class A Class B* Class Y*
_______________________________________________________________
Sold 4,428,851 399,282 194
Issued for reinvested 1,929,797 2,588 2
distributions
Redeemed (9,662,241) (5,232) --
_______________________________________________________________
Net increase
(decrease) (3,303,593) 396,638 196
_______________________________________________________________
*Inception date was March 20, 1995.
Massachusetts Tax-Exempt Fund
Six months ended Dec. 31, 1995
Class A Class B Class Y
_______________________________________________________________
Sold 1,013,389 407,200 --
Issued for reinvested 265,917 10,238 5
distributions
Redeemed (1,139,288) (48,211) --
_______________________________________________________________
Net increase 140,018 369,227 5
_______________________________________________________________
Year ended June 30, 1995
Class A Class B* Class Y*
_______________________________________________________________
Sold 1,986,963 373,441 190
Issued for reinvested 581,883 2,245 2
distributions
Redeemed (3,369,135) (25,777) --
_______________________________________________________________
Net increase (decrease) (800,289) 349,909 192
_______________________________________________________________
*Inception date was March 20, 1995.
Michigan Tax-Exempt Fund
Six months ended Dec. 31, 1995
Class A Class B Class Y
________________________________________________________________
Sold 746,276 128,509 --
Issued for reinvested 439,519 8,481 8
distributions
Redeemed (888,372) (7,372) --
________________________________________________________________
Net increase 297,423 129,618 8
________________________________________________________________
Year ended June 30, 1995
Class A Class B* Class Y*
________________________________________________________________
Sold 2,295,997 183,169 185
Issued for reinvested 615,732 779 2
distributions
Redeemed (2,849,810) (615) --
________________________________________________________________
Net increase 61,919 183,333 187
________________________________________________________________
*Inception date was March 20, 1995.
<PAGE>
Minnesota Tax-Exempt Fund
Six months ended Dec. 31, 1995
Class A Class B Class Y
_________________________________________________________________
Sold 3,909,130 982,092 --
Issued for reinvested 1,794,576 27,700 6
distributions
Redeemed (6,454,154) (52,124) --
_________________________________________________________________
Net increase
(decrease) (750,448) 957,668 6
_________________________________________________________________
Year ended June 30, 1995
Class A Class B* Class Y*
_________________________________________________________________
Sold 11,298,321 785,048 193
Issued for reinvested 3,679,693 4,700 2
distributions
Redeemed (16,502,683) (6,917) --
_________________________________________________________________
Net increase
(decrease) (1,524,669) 782,831 195
_________________________________________________________________
*Inception date was March 20, 1995.
New York Tax-Exempt Fund
Six months ended Dec. 31, 1995
Class A Class B Class Y
_________________________________________________________________
Sold 894,801 398,204 --
Issued for reinvested 522,165 13,052 6
distributions
Redeemed (1,498,183) (38,395) --
_________________________________________________________________
Net increase
(decrease) (81,217) 372,861 6
_________________________________________________________________
Year ended June 30, 1995
Class A Class B* Class Y*
_________________________________________________________________
Sold 3,164,808 371,486 195
Issued for reinvested 1,057,342 2,472 2
distributions
Redeemed (4,176,540) (4,318) --
__________________________________________________________________
Net increase 45,610 369,640 197
__________________________________________________________________
*Inception date was March 20, 1995.
Ohio Tax-Exempt Fund
Six months ended Dec. 31, 1995
Class A Class B Class Y
________________________________________________________________
Sold 605,140 181,327 --
Issued for reinvested 303,724 4,513 6
distributions
Redeemed (922,053) (8,553) --
________________________________________________________________
Net increase (decrease) (13,189) 177,287 6
________________________________________________________________
Year ended June 30, 1995
Class A Class B* Class Y*
________________________________________________________________
Sold 2,368,379 133,660 189
Issued for reinvested 604,956 691 2
distributions
Redeemed (2,726,424) (4) --
________________________________________________________________
Net increase 246,911 134,347 191
________________________________________________________________
*Inception date was March 20, 1995.
<PAGE>
5. Interest rate futures contracts
Investments in securities at Dec. 31, 1995, included securities valued at
$6,037,275 for IDS California, $2,178,450 for IDS Massachusetts, $2,204,230
for IDS Michigan, $5,382,200 for IDS Minnesota, $5,410,430 for IDS New York
and $1,610,290 for IDS Ohio tax-exempt funds that were pledged as collateral
to cover initial margin deposits on 165, 45, 50, 270, 95 and 48 open purchase
contracts, respectively. The market value of the open contracts at Dec. 31,
1995, was $19,993,781 for IDS California, $5,452,969 for IDS Massachusetts,
$6,058,563 for IDS Michigan, $32,717,375 for IDS Minnesota, $11,511,531 for
IDS New York and $5,816,500 for IDS Ohio tax-exempt funds with a net realized
gain of $221,935 for IDS California, $42,891 for IDS Massachusetts, $48,001
for IDS Michigan, $257,255 for IDS Minnesota, $126,997 for IDS New York and
$45,776 for IDS Ohio tax-exempt funds.
The Funds maintain, in a segregated account with its custodian, advanced
refunded bonds with at least a market value equal to the value of these open
long futures contracts. Advanced refunded bonds are highly liquid, usually
covered by government securities, which will be refunded at the bond's first
call date.
6. Capital loss carryover
For federal income tax purposes, capital loss carryovers were approximately
$73,000 for IDS Massachusetts, and $114,000 for IDS Ohio tax-exempt funds at
Dec. 31, 1995. These capital loss carryovers will expire in 1997 through 2004
if not offset by subsequent capital gains. It is unlikely the board will
authorize a distribution of any net realized capital gains for a fund until
the respective capital loss carryover has been offset or expires.
<PAGE>
PAGE
IDS California Tax-Exempt Trust
IDS California Tax-Exempt Fund
______________________________________________________________________________
7. Financial highlights
<TABLE>
<CAPTION>
The table below shows certain important financial
information for evaluating the Fund's results.
Fiscal period ended June 30,
Per share income and capital changes*
Class A
1995** 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C> <C>
Net asset value, $5.16 $5.13 $5.41 $5.18 $4.94 $4.89
beginning of period
Income from investment operations:
Net investment income .14 .30 .31 .30 .31 .32
Net gains (losses) .23 .03 (.28) .23 .24 .05
(both realized
and unrealized)
Total from investment .37 .33 .03 .53 .55 .37
operations
Less distributions:
Dividends from net (.14) (.30) (.31) (.30) (.31) (.32)
investment income
Distributions from (.03) -- -- -- -- --
realized gains
Total distributions (.17) (.30) (.31) (.30) (.31) (.32)
Net asset value, $5.36 $5.16 $5.13 $5.41 $5.18 $4.94
end of period
Ratios/supplemental data
1995 1995 1994 1993 1992 1991
Net assets, end of period $248 $239 $255 $261 $222 $185
(in millions)
Ratio of expenses to .75%+ .65% .61% .63% .64% .60%
average daily net assets
Ratio of net income 5.38%+ 5.89% 5.67% 5.78% 6.16% 6.51%
to average daily net assets
Portfolio turnover rate 8% 48% 27% 5% 7% 23%
(excluding short-term
securities)
Total return++ 7.5% 6.5% 0.4% 10.8% 11.4% 7.7%
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Six months ended Dec. 31, 1995 (Unaudited).
+Adjusted to an annual basis.
++Total return does not reflect payment of a sales charge.
/TABLE
<PAGE>
PAGE
IDS California Tax-Exempt Trust
IDS California Tax-Exempt Fund
______________________________________________________________________________
Financial highlights
<TABLE>
<CAPTION>
The table below shows certain important financial
information for evaluating the Fund's results.
Fiscal period ended June 30,
Per share income and capital changes*
Class B Class Y
1995*** 1995** 1995*** 1995**
<S> <C> <C> <C> <C>
Net asset value, $5.16 $5.21 $5.15 $5.22
beginning of period
Income from investment operations:
Net investment income .12 .09 .15 .08
Net gains (losses) .23 (.05) .26 (.07)
(both realized
and unrealized)
Total from investment .35 .04 .41 .01
operations
Less distributions:
Dividends from net (.12) (.09) (.15) (.08)
investment income
Distributions from (.03) -- (.03) --
realized gains
Total distributions (.15) (.09) (.18) (.08)
Net asset value, $5.36 $5.16 $5.38 $5.15
end of period
Ratios/supplemental data
1995*** 1995** 1995*** 1995**
Net assets, end of period $4 $2 $ -- $ --
(in millions)
Ratio of expenses to 1.51%+ 1.51%+ .58%+ .54%+
average daily net assets
Ratio of net income 4.56%+ 4.87%+ 5.60%+ 5.92%+
to average daily net assets
Portfolio turnover rate 8% 48% 8% 48%
(excluding short-term
securities)
Total return++ 7.1% 0.8% 7.6% 0.2%
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Inception date was March 20, 1995 for Class B and Class Y. Significant shareholder activity began
March 21, 1995 for Class B and March 28, 1995 for Class Y.
***Six months ended Dec. 31, 1995 (Unaudited).
+Adjusted to an annual basis.
++Total return does not reflect payment of a sales charge.
</TABLE>
<PAGE>
PAGE
IDS Special Tax-Exempt Series Trust
IDS Massachusetts Tax-Exempt Fund
______________________________________________________________________________
Financial highlights
<TABLE>
<CAPTION>
The table below shows certain important financial
information for evaluating the Fund's results.
Fiscal period ended June 30,
Per share income and capital changes*
Class A
1995** 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C> <C>
Net asset value, $5.27 $5.24 $5.49 $5.20 $4.96 $4.88
beginning of period
Income from investment operations:
Net investment income .14 .30 .30 .30 .31 .32
Net gains (losses) .25 .03 (.25) .29 .24 .08
(both realized
and unrealized)
Total from investment .39 .33 .05 .59 .55 .40
operations
Less distributions:
Dividends from net (.14) (.30) (.30) (.30) (.31) (.32)
investment income
Net asset value, $5.52 $5.27 $5.24 $5.49 $5.20 $4.96
end of period
Ratios/supplemental data
1995** 1995 1994 1993 1992 1991
Net assets, end of period $72 $68 $72 $64 $44 $27
(in millions)
Ratio of expenses to .82%+ .72% .69% .72% .72% .69%
average daily net assets
Ratio of net income 5.28%+ 5.74% 5.40% 5.57% 6.05% 6.53%
to average daily net assets
Portfolio turnover rate 1% 16% 6% 0% 2% 16%
(excluding short-term
securities)
Total return++ 7.4% 6.5% 0.9% 11.5% 11.4% 8.5%
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Six months ended Dec. 31, 1995 (Unaudited).
+Adjusted to an annual basis.
++Total return does not reflect payment of a sales charge.
/TABLE
<PAGE>
PAGE
IDS Special Tax-Exempt Series Trust
IDS Massachusetts Tax-Exempt Fund
______________________________________________________________________________
Financial highlights
<TABLE>
<CAPTION>
The table below shows certain important financial
information for evaluating the Fund's results.
Fiscal period ended June 30,
Per share income and capital changes*
Class B Class Y
1995*** 1995** 1995*** 1995**
<S> <C> <C> <C> <C>
Net asset value, $5.27 $5.31 $5.28 $5.32
beginning of period
Income from investment operations:
Net investment income .12 .09 .15 .08
Net gains (losses) .25 (.04) .26 (.04)
(both realized
and unrealized)
Total from investment .37 .05 .41 .04
operations
Less distributions:
Dividends from net (.12) (.09) (.15) (.08)
investment income
Net asset value, $5.52 $5.27 $5.54 $5.28
end of period
Ratios/supplemental data
1995*** 1995** 1995*** 1995**
Net assets, end of period $4 $2 $-- $--
(in millions)
Ratio of expenses to 1.58%+ 1.59%+ .58%+ .54%+
average daily net assets
Ratio of net income 4.49%+ 4.83%+ 5.58%+ 5.91%+
to average daily net assets
Portfolio turnover rate 1% 16% 1% 16%
(excluding short-term
securities)
Total return++ 7.0% 0.9% 7.5% 0.9%
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Inception date was March 20, 1995 for Class B and Class Y. Significant shareholder
activity began March 23, 1995 for Class B and March 28, 1995 for Class Y.
***Six months ended Dec. 31, 1995 (Unaudited).
+Adjusted to an annual basis.
++Total return does not reflect payment of a sales charge.
</TABLE> <PAGE>
IDS Special Tax-Exempt Series Trust
IDS Michigan Tax-Exempt Fund
______________________________________________________________________________
Financial highlights
<TABLE>
<CAPTION>
The table below shows certain important financial
information for evaluating the Fund's results.
Fiscal period ended June 30,
Per share income and capital changes*
Class A
1995** 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C> <C>
Net asset value, $5.39 $5.35 $5.60 $5.31 $5.04 $4.96
beginning of period
Income from investment operations:
Net investment income .15 .30 .31 .31 .32 .32
Net gains (losses) .28 .05 (.25) .29 .27 .08
(both realized
and unrealized)
Total from investment .43 .35 .06 .60 .59 .40
operations
Less distributions:
Dividends from net (.15) (.31) (.31) (.31) (.32) (.32)
investment income
Distributions from (.07) -- -- -- -- --
realized gains
Total distributions (.22) (.31) (.31) (.31) (.32) (.32)
Net asset value, $5.60 $5.39 $5.35 $5.60 $5.31 $5.04
end of period
Ratios/supplemental data
1995** 1995 1994 1993 1992 1991
Net assets, end of period $82 $78 $77 $72 $55 $41
(in millions)
Ratio of expenses to .81%+ .70% .65% .68% .67% .67%
average daily net assets
Ratio of net income 5.40%+ 5.71% 5.43% 5.64% 6.18% 6.45%
to average daily net assets
Portfolio turnover rate 19% 48% 16% 2% 0% 3%
(excluding short-term
securities)
Total return++ 8.2% 6.6% 1.0% 11.6% 12.0% 8.3%
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Six months ended Dec. 31, 1995 (Unaudited).
+Adjusted to an annual basis.
++Total return does not reflect payment of a sales charge.
/TABLE
<PAGE>
PAGE
IDS Special Tax-Exempt Series Trust
IDS Michigan Tax-Exempt Fund
______________________________________________________________________________
Financial highlights
<TABLE>
<CAPTION>
The table below shows certain important financial
information for evaluating the Fund's results.
Fiscal period ended June 30,
Per share income and capital changes*
Class B Class Y
1995*** 1995** 1995*** 1995**
<S> <C> <C> <C> <C>
Net asset value, $5.39 $5.43 $5.41 $5.45
beginning of period
Income from investment operations:
Net investment income .13 .09 .15 .09
Net gains (losses) .28 (.04) .28 (.04)
(both realized
and unrealized)
Total from investment .41 .05 .43 .05
operations
Less distributions:
Dividends from net (.13) (.09) (.15) (.09)
investment income
Distributions from (.07) -- (.07) --
realized gains
Total distributions (.20) (.09) (.22) (.09)
Net asset value, $5.60 $5.39 $5.62 $5.41
end of period
Ratios/supplemental data
1995*** 1995** 1995*** 1995**
Net assets, end of period $2 $1 $ -- $ --
(in millions)
Ratio of expenses to 1.57%+ 1.62%+ .58%+ .54%+
average daily net assets
Ratio of net income 4.65%+ 4.89%+ 5.57%+ 5.91%+
to average daily net assets
Portfolio turnover rate 19% 48% 19% 48%
(excluding short-term
securities)
Total return++ 7.8% 0.9% 8.2% 0.9%
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Inception date was March 20, 1995 for Class B and Class Y. Significant shareholder
activity began March 23, 1995 for Class B and March 28, 1995 for Class Y.
***Six months ended Dec. 31, 1995 (Unaudited).
+Adjusted to an annual basis.
++Total return does not reflect payment of a sales charge.
/TABLE
<PAGE>
PAGE
IDS Special Tax-Exempt Series Trust
IDS Minnesota Tax-Exempt Fund
______________________________________________________________________________
Financial highlights
<TABLE>
<CAPTION>
The table below shows certain important financial
information for evaluating the Fund's results.
Fiscal period ended June 30,
Per share income and capital changes*
Class A
1995** 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C> <C>
Net asset value, $5.19 $5.16 $5.44 $5.22 $5.01 $4.95
beginning of period
Income from investment operations:
Net investment income .15 .31 .31 .31 .33 .33
Net gains (losses) .22 .03 (.28) .22 .21 .06
(both realized
and unrealized)
Total from investment .37 .34 .03 .53 .54 .39
operations
Less distributions:
Dividends from net (.15) (.31) (.31) (.31) (.33) (.33)
investment income
Net asset value, $5.41 $5.19 $5.16 $5.44 $5.22 $5.01
end of period
Ratios/supplemental data
1995** 1995 1994 1993 1992 1991
Net assets, end of period $416 $403 $408 $402 $313 $233
(in millions)
Ratio of expenses to .76%+ .67% .66% .67% .66% .63%
average daily net assets
Ratio of net income 5.64%+ 6.01% 5.73% 5.91% 6.43% 6.67%
to average daily net assets
Portfolio turnover rate 4% 28% 13% 2% 7% 10%
(excluding short-term
securities)
Total return++ 7.2% 6.8% 0.4% 10.5% 11.0% 8.2%
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Six months ended Dec. 31, 1995 (Unaudited).
+Adjusted to an annual basis.
++Total return does not reflect payment of a sales charge.
/TABLE
<PAGE>
PAGE
IDS Special Tax-Exempt Series Trust
IDS Minnesota Tax-Exempt Fund
______________________________________________________________________________
Financial highlights
<TABLE>
<CAPTION>
The table below shows certain important financial
information for evaluating the Fund's results.
Fiscal period ended June 30,
Per share income and capital changes*
Class B Class Y
1995*** 1995** 1995*** 1995**
<S> <C> <C> <C> <C>
Net asset value, $5.19 $5.24 $5.20 $5.25
beginning of period
Income from investment operations:
Net investment income .13 .09 .16 .09
Net gains (losses) .22 (.05) .22 (.05)
(both realized
and unrealized)
Total from investment .35 .04 .38 .04
operations
Less distributions:
Dividends from net (.13) (.09) (.16) (.09)
investment income
Net asset value, $5.41 $5.19 $5.42 $5.20
end of period
Ratios/supplemental data
1995*** 1995** 1995*** 1995**
Net assets, end of period $9 $4 -- --
(in millions)
Ratio of expenses to 1.52%+ 1.27%+ .58%+ .54%+
average daily net assets
Ratio of net income 4.92%+ 5.40%+ 5.77%+ 5.91%+
to average daily net assets
Portfolio turnover rate 4% 28% 4% 28%
(excluding short-term
securities)
Total return++ 6.9% 0.8% 7.4% 0.8%
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Inception date was March 20, 1995 for Class B and Class Y. Significant shareholder activity
began March 21, 1995 for Class B and March 28, 1995 for Class Y.
***Six months ended Dec. 31, 1995 (Unaudited).
+Adjusted to an annual basis.
++Total return does not reflect payment of a sales charge.
/TABLE
<PAGE>
PAGE
IDS Special Tax-Exempt Series Trust
IDS New York Tax-Exempt Fund
______________________________________________________________________________
Financial highlights
<TABLE>
<CAPTION>
The table below shows certain important financial
information for evaluating the Fund's results.
Fiscal period ended June 30,
Per share income and capital changes*
Class A
1995** 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C> <C>
Net asset value, $5.09 $5.12 $5.41 $5.13 $4.86 $4.80
beginning of period
Income from investment operations:
Net investment income .15 .30 .30 .30 .31 .31
Net gains (losses) .20 (.03) (.29) .28 .27 .06
(both realized
and unrealized)
Total from investment .35 .27 .01 .58 .58 .37
operations
Less distributions:
Dividends from net (.15) (.30) (.30) (.30) (.31) (.31)
investment income
Net asset value, $5.29 $5.09 $5.12 $5.41 $5.13 $4.86
end of period
Ratios/supplemental data
1995** 1995 1994 1993 1992 1991
Net assets, end of period $124 $120 $120 1$117 $95 $79
(in millions)
Ratio of expenses to .79%+ .70% .65% .67% .67% .65%
average daily net assets
Ratio of net income 5.52%+ 6.00% 5.61% 5.79% 6.26% 6.53%
to average daily net assets
Portfolio turnover rate 2% 20% 10% 0% 8% 17%
(excluding short-term
securities)
Total return++ 7.0% 5.5% 0.1% 11.6% 12.3% 8.2%
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Six months ended Dec. 31, 1995 (Unaudited).
+Adjusted to an annual basis.
++Total return does not reflect payment of a sales charge.
/TABLE
<PAGE>
PAGE
IDS Special Tax-Exempt Series Trust
IDS New York Tax-Exempt Fund
______________________________________________________________________________
Financial highlights
<TABLE>
<CAPTION>
The table below shows certain important financial
information for evaluating the Fund's results.
Fiscal period ended June 30,
Per share income and capital changes*
Class B Class Y
1995*** 1995** 1995*** 1995**
<S> <C> <C> <C> <C>
Net asset value, $5.09 $5.17 $5.11 $5.17
beginning of period
Income from investment operations:
Net investment income .13 .09 .15 .08
Net gains (losses) .20 (.08) .20 (.06)
(both realized
and unrealized)
Total from investment .33 .01 .35 .02
operations
Less distributions:
Dividends from net (.13) (.09) (.15) (.08)
investment income
Net asset value, $5.29 $5.09 $5.31 $5.11
end of period
Ratios/supplemental data
1995*** 1995** 1995*** 1995**
Net assets, end of period $4 $2 $ -- $ --
(in millions)
Ratio of expenses to 1.55%+ 1.59%+ .58%+ .54%+
average daily net assets
Ratio of net income 4.83%+ 5.42%+ 5.82%+ 5.94%+
to average daily net assets
Portfolio turnover rate 2% 20% 2% 20%
(excluding short-term
securities)
Total return++ 6.6% 0.2% 7.0% 0.4%
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Inception date was March 20, 1995 for Class B and Class Y. Significant shareholder activity
began March 21, 1995 for Class B and March 28, 1995 for Class Y.
***Six months ended Dec. 31, 1995 (Unaudited).
+Adjusted to an annual basis.
++Total return does not reflect payment of a sales charge.
/TABLE
<PAGE>
PAGE
IDS Special Tax-Exempt Series Trust
IDS Ohio Tax-Exempt Fund
______________________________________________________________________________
Financial highlights
<TABLE>
<CAPTION>
The table below shows certain important financial
information for evaluating the Fund's results.
Fiscal period ended June 30,
Per share income and capital changes*
Class A
1995** 1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C> <C>
Net asset value, $5.28 $5.26 $5.58 $5.28 $5.01 $4.94
beginning of period
Income from investment operations:
Net investment income .14 .29 .30 .30 .31 .32
Net gains (losses) .23 .03 (.32) .31 .27 .07
(both realized
and unrealized)
Total from investment .37 .32 (.02) .61 .58 .39
operations
Less distributions:
Dividends from net (.14) (.30) (.30) (.30) (.31) (.32)
investment income
Distributions from (.01) -- -- (.01) -- --
realized gains
Total distributions (.15) (.30) (.30) (.31) (.31) (.32)
Net asset value, $5.50 $5.28 $5.26 $5.58 $5.28 $5.01
end of period
Ratios/supplemental data
1995** 1995 1994 1993 1992 1991
Net assets, end of period $76 $73 $72 $65 $47 $33
(in millions)
Ratio of expenses to .86%+ .71% .66% .67% .70% .68%
average daily net assets
Ratio of net income 5.29%+ 5.65% 5.44% 5.65% 6.14% 6.41%
to average daily net assets
Portfolio turnover rate 15% 45% 11% 0% 5% 2%
(excluding short-term
securities)
Total return++ 7.2% 6.2% (0.5%) 12.1% 11.9% 8.1%
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Six months ended Dec. 31, 1995 (Unaudited).
+Adjusted to an annual basis.
++Total return does not reflect payment of a sales charge.
/TABLE
<PAGE>
PAGE
IDS Special Tax-Exempt Series Trust
IDS Ohio Tax-Exempt Fund
______________________________________________________________________________
Financial highlights
<TABLE>
<CAPTION>
The table below shows certain important financial
information for evaluating the Fund's results.
Fiscal period ended June 30,
Per share income and capital changes*
Class B Class Y
1995*** 1995** 1995*** 1995**
<S> <C> <C> <C> <C>
Net asset value, $5.28 $5.34 $5.28 $5.35
beginning of period
Income from investment operations:
Net investment income .12 .09 .15 .08
Net gains (losses) .23 (.06) .23 (.07)
(both realized
and unrealized)
Total from investment .35 .03 .38 .01
operations
Less distributions:
Dividends from net (.12) (.09) (.15) (.08)
investment income
Distributions from (.01) -- (.01) --
realized gains
Total distributions (.13) (.09) (.16) (.08)
Net asset value, $5.50 $5.28 $5.50 $5.28
end of period
Ratios/supplemental data
1995*** 1995** 1995*** 1995**
Net assets, end of period $2 $1 $-- $--
(in millions)
Ratio of expenses to 1.56%+ 1.66%+ .77%+ .54%+
average daily net assets
Ratio of net income 4.57%+ 4.58%+ 5.42%+ 5.93%+
to average daily net assets
Portfolio turnover rate 15% 45% 15% 45%
(excluding short-term
securities)
Total return++ 6.8% 0.6% 7.3% 0.2%
*For a share outstanding throughout the period. Rounded to the nearest cent.
**Inception date was March 20, 1995 for Class B and Class Y. Significant shareholder
activity began March 21, 1995 for Class B and March 28, 1995 for Class Y.
***Six months ended Dec. 31, 1995 (Unaudited).
+Adjusted to an annual basis.
++Total return does not reflect payment of a sales charge.
/TABLE
<PAGE>
PAGE
<TABLE>
<CAPTION>
Investments in securities
IDS California Tax-Exempt Fund (Percentages represent value of
Dec. 31, 1995 (Unaudited) investments compared to net assets)
____________________________________________________________________________________________________________________________
Municipal bonds (97.3%)
____________________________________________________________________________________________________________________________
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 $ 3,558,300
Anaheim Public Finance Authority Revenue 2nd Series Electric Utilities
San Juan (FGIC Insured) 5.75 2022 11,100,000 11,322,333
Brea Redevelopment Agency Tax Allocation Refunding Bonds
Redevelopment Project AB (MBIA Insured) 5.50 2017 1,800,000 1,793,142
Burbank Redevelopment Agency Tax Allocation Bonds Golden State Series 1992A 6.00 2013 1,500,000 1,509,945
Burbank Redevelopment Agency Tax Allocation Bonds Golden State Series 1993A 6.00 2023 2,000,000 1,986,480
Calaveras County Water District Certificate of Participation
Refunding Revenue Bonds Water & Sewer System Improvement (AMBAC Insured) 5.25 2012 2,815,000 2,821,474
Chapman College Educational Facilities Authority Revenue Bonds
Series 1989B 7.50 2018 500,000 540,355
Chico Walker Senior Housing Insured Revenue Bonds The Lodge Series 1993A 5.70 2023 1,500,000 1,487,460
Clearlake Redevelopment Agency Highlands Park Community Development
Tax Allocation Bonds Series 1993 6.40 2023 1,420,000 1,432,113
Eastern Municipal Water District Riverside County Water & Sewer
Revenue Certificates of Participation Series 1991 6.00 2023 1,000,000 1,022,390
Eastern Municipal Water District Riverside County Water & Sewer
Pre-Refunded Revenue Certificates of Participation Series 1991
(FGIC Insured) 6.50 2020 3,000,000 3,382,170
El Camino Hospital District Hospital Pre-Refunded Revenue
Certificate of Participation Series A 8.50 2017 1,500,000 1,642,770
Fontana Redevelopment Agency Refunding Certificate of Participation
Police Facility Series 1993 5.625 2016 4,500,000 4,406,400
Fontana Unified School District Unlimited Tax General Obligation Bonds
Zero Coupon Series C (FGIC Insured) 6.40 2020 3,470,000 (e) 3,105,719
Foothill-De Anza Community College Santa Clara County Refunding
Certificate of Participation Series 1993 (Connie Lee Insured) 5.25 2021 1,675,000 1,631,115
Foothill/Eastern Transportation Corridor Agency Toll Road
Senior Lien Revenue Bonds Series 1995A 6.00 2034 1,775,000 1,767,083
Garden Grove Agency Community Development Tax Allocation Refunding Bonds
Garden Grove Community 5.875 2023 3,000,000 2,997,630
Garden Grove Certificate of Participation Bahia Village/Emerald Isle
(FSA Insured) 5.70 2023 2,660,000 2,685,270
Huntington Beach Certificate of Participation Revenue Bonds
Civic Center Refinancing (AMBAC Insured) 5.50 2016 1,715,000 1,694,094
Indian Wells Improvement Bonds Assessment District #13 7.50 2008 370,000 381,274
Long Beach Harbor Revenue Bonds Series 1989A A.M.T. 7.25 2019 7,000,000 (h) 7,549,990
Los Angeles Convention & Exhibition Center Pre-Refunded
Certificate of Participation Series 1989A 7.00 2020 5,000,000 5,562,900
See accompanying notes to investments in securities.<PAGE>
Los Angeles Convention & Exhibition Center Pre-Refunded
Certificate of Participation Series 1989A 7.30 2009 1,000,000 1,122,610
Los Angeles Convention & Exhibition Center Pre-Refunded
Certificate of Participation Series 1989A 7.375 2018 2,900,000 3,262,848
Los Angeles County Certificate of Participation Disney Parking 5.50 2021 1,625,000 1,535,348
Los Angeles County Metropolitan Transportation Authority Sales Tax
Revenue Bonds (AMBAC Insured) 5.00 2025 750,000 723,113
Los Angeles County Transportation Commission Sales Tax
Refunding Revenue Bonds Series A 7.00 2019 4,150,000 4,520,097
Los Angeles County Transportation Commission Sales Tax
Pre-Refunded Revenue Bonds Series A 8.00 2016 2,000,000 2,161,440
Los Angeles County Transportation Commission Sales Tax
Pre-Refunded Revenue Bonds Series 1988A 7.875 2008 500,000 555,065
Los Angeles County Transportation Commission Sales Tax
Refunding Revenue Bonds Series 1989A 7.40 2015 2,000,000 2,241,180
Los Angeles Department of Water & Power Electric Plant Revenue Bonds
Series 1990 7.125 2030 6,500,000 7,302,555
Los Angeles Department of Water & Power Waterworks Refunding Revenue Bonds
Second Issue (Secondary FGIC Insured) 4.50 2018 3,000,000 2,709,330
Los Angeles International Airport Revenue Bonds Series D
(FGIC Insured) A.M.T. 5.50 2015 1,000,000 1,013,450
Los Angeles Multi-family Earthquake Rehabilitation Housing Revenue Bonds
Series B (FNMA Insured) A.M.T. 5.85 2027 2,000,000 2,042,960
Los Angeles Multi-family Housing Revenue Bonds Park Parthenia
Series 1986A (GNMA Insured) A.M.T. 7.40 2022 1,000,000 1,041,010
Los Angeles Single Family Home Mortgage Revenue Bonds Series 1991A
(GNMA & FNMA Insured) A.M.T. 6.875 2025 810,000 845,826
Los Angeles State Building Authority Lease Pre-Refunded Revenue Bonds
State Department of General Services Lease Series 1988A 7.25 2006 3,000,000 3,263,640
Los Angeles State Building Authority Lease Pre-Refunded Revenue Bonds
State Department of General Services Lease Series 1988A 7.50 2011 1,500,000 1,639,560
Los Angeles State Harbor Revenue Bonds Escrowed to Maturity 7.60 2018 1,000,000 1,159,920
Los Angeles Wastewater System Pre-Refunded Revenue Bonds Series 1987 8.125 2017 1,000,000 1,095,830
Los Angeles Wastewater System Refunding Revenue Bonds
Series D (FGIC Insured) 4.70 2017 1,000,000 935,120
Mayer Memorial Hospital District Insured Health Facility Revenue Bonds
(California Mortgage Insured) 5.50 2013 950,000 928,112
Modesto Certificate of Participation Pre-Refunded Bonds Community Center 8.10 2015 1,000,000 1,095,390
Modesto Irrigation Certificate of Participation 7.25 2015 2,000,000 2,089,320
Mount Diablo Hospital District Hospital Pre-Refunded Revenue Bonds
Series 1990A (AMBAC Insured) 7.00 2017 3,000,000 3,430,350
North City West Community School Facility Authority Special Tax
Refunding Bonds Series 1995B (CGIC Insured) 5.75 2015 1,000,000 1,028,030
Northern California Public Power Authority Power Pre-Refunded Revenue Bonds
Hydroelectric Series 1986B-3 8.00 2024 2,000,000 2,192,940
Northern California Public Power Authority Power Pre-Refunded Revenue Bonds
Hydroelectric #1 Series 1986B-1 8.00 2024 2,100,000 2,302,587
Northern California Public Power Authority Refunding Revenue Bonds
Geothermal #3 Series 1987A 7.00 2007 3,325,000 3,426,546
Northern California Transmission Agency California-Oregon Transmission
Pre-Refunded Revenue Bonds Series 1990A (MBIA Insured) 7.00 2024 2,000,000 2,251,700
Northern California Transmission Revenue Linked Select Auction
Variable Rate Security & Residual Interest Bonds (MBIA Insured) 5.50 2024 2,500,000 (g) 2,482,050
Novato Community Facility District #1 Vintage Oaks Public Improvement
Special Tax Refunding Bonds 7.25 2021 2,000,000 2,123,920
Pleasanton Joint Powers Financing Authority Reassessment Revenue Bonds
Series 1993A 6.15 2012 1,950,000 2,017,314
Port of Oakland Revenue Bonds AMT Series 1989A (BIG Insured) 7.60 2016 500,000 530,445
Rancho Cucamonga Redevelopment Agency 1990 Tax Allocation Pre-Refunded Bonds
(MBIA Insured) 7.125 2019 3,540,000 3,972,694
Rancho Mirage Joint Powers Finance Authority Certificate of Participation
Eisenhower Memorial Hospital 7.00 2022 4,250,000 4,584,518
Redding Redevelopment Agency Tax Allocation Refunding Bonds
Canby Hilltop Cypress Series D (CGIC Insured) 5.00 2023 4,700,000 4,483,048
Richmond Joint Powers Financing Authority Leases and Gas Tax
Refunding Revenue Bonds Series 1995A 5.25 2013 3,540,000 3,399,462
Sacramento Cogeneration Authority Cogeneration Revenue Bonds
Procter & Gamble Series 1995 6.375 2010 1,000,000 1,048,640
Sacramento Municipal Utility District Series R 6.00 2015-17 7,500,000 7,512,645
Sacramento Municipal Utility District Pre-Refunded Series V 7.50 2018 2,775,000 3,020,588
Sacramento Municipal Utility District Pre-Refunded Series W 7.50 2018 1,980,000 2,155,230
Sacramento Municipal Utility District Pre-Refunded Series Y (MBIA Insured) 6.75 2019 3,400,000 3,885,180
Sacramento Power Authority Cogeneration Revenue Bonds Series 1995 6.00 2022 1,000,000 997,760
San Diego County Capital Asset Lease Certificate of Participation
Series 1993 Inverse Floater (AMBAC Insured) 6.82 2007 3,200,000 (f) 3,472,000
San Diego Industrial Development Revenue Bonds San Diego Gas & Electric
Series A 7.625 2021 1,000,000 1,035,560
San Diego Regional Transportation Commission Sales Tax
Pre-Refunded Revenue Bonds Limited Tax Series 1989A 6.25 2008 5,030,000 5,368,720
San Joaquin County Pre-Refunded Certificate of Participation
Human Services Facility Series 1989 (BIG Insured) 6.70 2009 3,500,000 3,854,515
San Joaquin County Certificate of Participation
Jail & Sheriffs Operation Center (MBIA Insured) 6.75 2015 2,000,000 2,228,400
San Jose Redevelopment Agency Merged Area Redevelopment Tax Allocation Bonds
Series 1993 (MBIA Insured) 4.75 2024 1,435,000 1,331,336
San Jose Redevelopment Agency Merged Area Tax Allocation Bonds
Series 1993 Inverse Floater (MBIA Insured) 6.555 2014 3,000,000 (f) 3,048,750
San Mateo County Transit District Limited Tax Pre-Refunded Bonds
Series 1990A (MBIA Insured) 6.50 2020 1,500,000 1,615,845
Santa Clara County Mountain View-Los Altos Union High School District
Unlimited Tax General Obligation Bonds Series A 5.75 2015 1,200,000 1,214,100
Santa Cruz Certificate of Participation 8.375 2007 1,220,000 1,312,610
Santa Rosa Sonoma County Wastewater Service Facility District
Pre-Refunded Improvement Bonds Series 1989 7.80 2015 1,000,000 1,077,920
Southern California Home Financing Authority Single Family Mortgage
Revenue Bonds 1990B (GNMA Insured) A.M.T. 7.75 2024 575,000 610,006
Southern California Public Power Authority Transmission
Pre-Refunded Revenue Bonds Series 1986A 7.875 2018 1,500,000 1,577,280
Southern California Public Power Authority San Juan Revenue Bonds
Series A (MBIA Insured) 5.00 2020 1,250,000 1,199,400
Southern California Public Power Authority Transmission Special Linked Bonds 5.858 2012 2,700,000 2,805,435
Southern California Public Power Authority Transportation Bonds Series B 7.375 2021 400,000 416,820
South Tahoe Joint Powers Financing Authority Refunding Revenue Bonds
Series 1995B 6.25 2020 2,700,000 2,728,809
State Department Water Resources Water System Pre-Refunded Revenue Bonds
Central Valley Series D 7.70 2024 2,400,000 2,608,128
State Department Water Resource Water System Revenue Bonds
Central Valley Project Series L 5.50 2023 3,000,000 2,970,270
State Education Facility Authority Revenue Bonds Pomona College 6.00 2017 3,000,000 3,110,940
State Health Facility Finance Authority Pre-Refunded Revenue Bonds
St. Joseph Health System Series 1989A 6.90 2014 3,500,000 (h) 3,880,135
State Housing Finance Agency Home Mortgage Revenue Bonds Series 1986B 6.90 2016 1,990,000 2,042,695
State Pollution Control Finance Authority Pollution Control Revenue Bonds
Southern California Edison Series 1988A A.M.T. 6.90 2006 2,000,000 2,151,540
State Public Works Board Lease Revenue Bonds California Community Colleges
Series 1994B 7.00 2019 2,000,000 2,257,580
State Public Works Board University of California Lease
Pre-Refunded Revenue Bonds Series 1990A 7.00 2015 2,250,000 2,559,870
State University Revenue Bonds San Jose State University Student Union
Series B 7.60 2007 150,000 157,659
State Unlimited Tax General Obligation Bonds
(Secondary FGIC Insured) 4.75 2023 2,945,000 2,735,228
Statewide Community Development Authority Certificate of Participation
Sutter Health Group (MBIA Insured) 5.50 2022 2,000,000 1,988,780
Statewide Community Development Authority Health Facilities Revenue Bonds
Unihealth America Series 1993A Inverse Floater (AMBAC Insured) 7.215 2011 5,000,000 (f) 5,400,000
Statewide Community Development Authority Revenue
Certificate of Participation St. Joseph Health System Group 6.50 2015 5,500,000 5,952,705
Stockton Single Family Mortgage Revenue Bonds
Series 1990A (GNMA Insured) A.M.T. 7.50 2023 115,000 123,072
University of Southern California Educational Facilities Authority
Pre-Refunded Revenue Bonds Series 1989B 6.75 2015 5,000,000 5,396,700
Upland Certificate of Participation Water System Refunding Bonds
(FGIC Insured) 6.60 2016 1,000,000 1,091,460
Vacaville Limited Obligation Improvement Bonds
Water Rights Assessment District 8.00 2007 805,000 829,512
______________________________________________________________________________________________________________________________
Total municipal bonds
(Cost: $220,122,536) $244,563,558
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $220,122,536)(i) $244,563,558
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE
______________________________________________________________________________________________________________________________
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 12-31-95 6-30-95
_____________________________________________________________________________
AAA 58% 61%
AA 19 16
A 14 19
BBB 6 3
BB and below 1 1
Non-rated 2 --
_____________________________________________________________________________
Total 100% 100%
_____________________________________________________________________________
(c) The following abbreviations are used in portfolio descriptions to identify the insurer of the issue:
AMBAC -- American Municipal Bond Association Corporation
BIG -- Bond Investors Guarantee
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:
A.M.T. -- Alternative Minimum Tax -- As of Dec. 31, 1995, the value of securities subject to
alternative minimum tax represented 6.3% of net assets.
(e) For zero coupon bonds, the interest rate disclosed represents the annualized effective 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 Dec. 31, 1995. Inverse floaters in the aggregate represent 4.7% of the Fund's
net assets as of Dec. 31, 1995.
(g) Interest rate varies to reflect current market conditions; rate shown is the effective rate on
Dec. 31, 1995.
(h) Partially pledged as initial deposit on the following open interest rate futures contracts
(see Note 5 to the financial statements):
Type of security Notional amount
Purchase contracts
____________________________________________________________
Municipal Bonds Index March 1996 $11,100,000
U.S. Treasury Bonds March 1996 5,400,000
____________________________________________________________
Total $16,500,000
____________________________________________________________
(i) At Dec. 31, 1995, the cost of securities for federal income tax purposes was approximately $219,949,000
and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation $24,616,000
Unrealized depreciation (1,000)
______________________________________________________________________
Net unrealized appreciation $24,615,000
______________________________________________________________________
/TABLE
<PAGE>
PAGE
<TABLE>
<CAPTION>
Investments in securities
IDS Massachusetts Tax-Exempt Fund (Percentages represent value of
Dec. 31, 1995 (Unaudited) investments compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (97.4%)
_____________________________________________________________________________________________________________________________
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 $ 488,635
Bay Transportation Authority General Transportation System
Refunding Bonds Series 1992B 6.20 2016 1,500,000 1,671,870
Boston City Hospital Refunding Revenue Bonds Series B (FHA Insured) 5.75 2023 3,000,000 2,989,560
Boston City Hospital Pre-Refunded Revenue Bonds Series A (FHA Insured) 7.625 2021 1,000,000 1,146,350
Boston General Obligation Bonds Series 1991A (MBIA Insured) 6.75 2011 500,000 568,190
Boston General Obligation Refunding Bonds Series 1993A (AMBAC Insured) 5.65 2009 1,500,000 (e) 1,559,340
Boston Industrial Development Financing Authority Revenue Bonds
Massachusetts College of Pharmacy Series 1993A (Connie Lee Insured) 5.25 2026 1,000,000 958,740
Boston Water & Sewer Commission General Pre-Refunded Revenue Bonds
Senior Series 1991A (FGIC Insured) 7.00 2018 1,000,000 1,155,320
Boston Water & Sewer Commission General Subordinate Revenue Bonds Series A
(MBIA Insured) 6.00 2008 500,000 518,260
Boston Water & Sewer Commission Senior Revenue Bonds Series A 7.875 2013 365,000 384,086
Boston Water & Sewer Commission Senior Pre-Refunded Revenue Bonds Series A 7.875 2013 210,000 221,413
Commonwealth General Obligation Consolidated Loan Pre-Refunded Bonds
Series 1990A (FGIC Insured) 7.25 2009 500,000 566,585
Greater Lawrence Sanitary District North Andover General Obligation Bonds 8.50 2005 570,000 598,449
Health & Educational Facilities Authority Refunding Revenue Bonds
Beth Israel Hospital Series 1989E 7.00 2009-14 550,000 594,407
Health & Educational Facilities Authority Revenue Bonds
Berkshire Health Systems Series A (MBIA Insured) 7.50 2008 500,000 554,430
Health & Educational Facilities Authority Revenue Bonds
Berkshire Health Systems Series C 5.90 2011 1,000,000 941,270
Health & Educational Facilities Authority Pre-Refunded Revenue Bonds
Beverly Hospital Series D (MBIA Insured) 7.30 2019 400,000 448,620
Health & Educational Facilities Authority Revenue Bonds
Boston College Series J (FGIC Insured) 6.625 2021 2,000,000 2,187,240
Health & Educational Facilities Authority Revenue Bonds
Boston College Series K 5.25 2023 1,000,000 975,830
Health & Educational Facilities Authority Revenue Bonds
Brigham & Women's Hospital Series C 6.75 2021 500,000 535,795
Health & Educational Facilities Authority Revenue Bonds
Brigham & Women's Hospital Series 1991D 6.75 2024 1,000,000 1,065,160
Health & Educational Facilities Authority Revenue Bonds
Cape Cod Health System Series A (Connie Lee Insured) 5.25 2021 2,500,000 2,417,450
Health & Educational Facilities Authority Revenue Bonds
Charlton Memorial Hospital Series 1991B 7.25 2013 1,750,000 1,878,258
Health & Educational Facilities Authority Revenue Bonds
Cooley Dickinson Hospital Issue (AMBAC Insured) 5.50 2025 1,250,000 1,244,462
See accompanying notes to investments in securities.
Health & Educational Facilities Authority Revenue Bonds
Holyoke Hospital Series B 6.50 2015 500,000 501,885
Health & Educational Facilities Authority Pre-Refunded Revenue Bonds
Lahey Clinic Medical Center Series A (MBIA Insured) 7.625 2018 500,000 552,110
Health & Educational Facilities Authority Revenue Bonds
Lahey Clinic Medical Center Series B (MBIA Insured) 5.625 2015 1,500,000 1,511,520
Health & Educational Facilities Authority Revenue Bonds
Melrose-Wakefield Hospital Series 1992B 6.375 2016 1,000,000 1,026,030
Health & Educational Facilities Authority Revenue Bonds
Morton Hospital & Medical Center Series B (Connie Lee Insured) 5.25 2014 1,000,000 983,730
Health & Educational Facilities Authority Pre-Refunded Revenue Bonds
Mount Auburn Hospital Series A (MBIA Insured) 7.875 2018 205,000 227,577
Health & Educational Facilities Authority Revenue Bonds
New England Deaconess Hospital Series 1992D 6.625 2012 1,000,000 1,045,400
Health & Educational Facilities Authority Revenue Bonds
Newton Wellesley Hospital Series 1991D (MBIA Insured) 7.00 2015 1,000,000 1,115,580
Health & Educational Facilities Authority Pre-Refunded Revenue Bonds
Northeastern University Series 1989C (AMBAC Insured) 7.10 2006 1,000,000 1,109,420
Health & Educational Facilities Authority Pre-Refunded Revenue Bonds
Northeastern University Series E (MBIA Insured) 6.55 2022 1,000,000 1,097,330
Health & Educational Facilities Authority Revenue Bonds
South Shore Hospital Series 1992D (MBIA Insured) 6.50 2022 1,000,000 1,089,930
Health & Educational Facilities Authority Pre-Refunded Revenue Bonds
Stonehill College Series 1990D (AMBAC Insured) 7.70 2020 1,000,000 1,159,800
Health & Educational Facilities Authority Revenue Bonds
Suffolk University Series B (Connie Lee Insured) 6.35 2022 2,495,000 2,632,325
Health & Educational Facilities Authority Pre-Refunded Revenue Bonds
Wentworth Institute of Technology Series A (AMBAC Insured) 7.40 2010 750,000 855,772
Health & Educational Facilities Authority Revenue Bonds
Valley Regional Health System Series C (Connie Lee Insured) 5.75 2018 1,000,000 1,015,760
Health & Educational Facilities Authority Revenue Bonds
Wentworth Institute of Technology Series B (Connie Lee Insured) 5.50 2023 1,500,000 1,456,245
Industrial Finance Agency 1st Mortgage Pre-Refunded Revenue Bonds
Berkshire Retirement Community at Lennox 9.875 2018 200,000 213,828
Industrial Finance Agency Pollution Control Refunding Revenue Bonds
Eastern Edison Series 1993 5.875 2008 2,000,000 2,009,180
Industrial Finance Agency Resource Recovery Revenue Bonds
Ogden Haverhill Series 1986A (AMBAC Insured) A.M.T. 7.375 2011 175,000 183,776
Industrial Finance Agency Resource Recovery Revenue Bonds
SEMASS Series 1991A 9.00 2015 1,500,000 (e) 1,658,670
Industrial Finance Agency Revenue Bonds Museum of Science Series 1989
(FSA Insured) 7.30 2009 1,000,000 1,130,400
Leominster General Obligation Bonds (MBIA Insured) 7.50 2009 1,000,000 1,144,890
Lowell Limited Tax General Obligation State Qualified Refunding Bonds
Series A (FSA Insured) 5.50 2010 800,000 821,720
Mansfield General Obligation Bonds (AMBAC Insured) 6.70 2011 1,000,000 1,109,190
Municipal Wholesale Electric Power Supply System Pre-Refunded Revenue Bonds
Series 1992B 6.75 2017 1,395,000 1,602,311
Municipal Wholesale Electric Power Supply System Refunding Revenue Bonds
Series B (MBIA Insured) 4.75 2011 1,750,000 1,666,875
Municipal Wholesale Electric Power Supply System Revenue Bonds
Special Pars & Inflows (AMBAC Insured) 5.45 2018 1,600,000 1,573,520
Nantucket General Obligation Bonds 6.80 2011 1,000,000 1,108,880
New Bedford General Obligation Bonds Series 1995 (AMBAC Insured) 5.50 2015 700,000 709,037
North Andover General Obligation Bonds (MBIA Insured) 7.35 2008 310,000 355,359
Port Authority Revenue Bonds Series 1990A
(FGIC Insured) A.M.T. 7.50 2020 1,000,000 1,128,290
Quincy Refunding Revenue Bonds Quincy Hospital Series 1993
(FSA Insured) 5.25 2016 1,000,000 980,540
Southeastern University Building Authority Refunding Revenue Bonds
Series 1986A 7.80 2016 100,000 103,367
Southeastern University Building Refunding Revenue Bonds Series A
(AMBAC Insured) 5.75 2016 1,250,000 1,283,438
Southeastern University Building Revenue Bonds 7.80 2011 325,000 335,943
Southern Berkshire Regional School District Unlimited Tax
General Obligation Pre-Refunded Bonds (AMBAC Insured) 7.55 2010 1,000,000 1,147,880
State College Building Authority Pre-Refunded Revenue Bonds Series 1986A 7.125 2006 150,000 154,740
State College Building Authority Pre-Refunded Revenue Bonds Series 1986A 7.25 2016 250,000 258,002
State Education Loan Authority, Educational Loan Revenue Bonds
Issue E Series B (AMBAC Insured) A.M.T. 6.00 2012 1,000,000 1,045,180
State General Obligation Consolidated Loan Bonds Series 1991A
(FGIC Insured) 6.00 2011 1,095,000 1,137,968
State Housing Finance Agency Single Family Housing Revenue Bonds
Series 13 A.M.T. 7.95 2023 485,000 515,157
State Housing Finance Authority Residential Development Bonds Series 1992A
(FNMA Insured) 6.875 2011 1,000,000 1,073,760
State Housing Finance Authority Single Family Mortgage Housing
Revenue Bonds Series 4 7.375 2014 430,000 447,690
State Housing Finance Authority Single Family Mortgage Housing
Revenue Bonds Series 7 A.M.T. 8.10 2020 245,000 258,571
State Water Resource Authority Revenue Bonds Series A
(Secondary MBIA Insured) 5.50 2022 1,100,000 1,092,377
University of Lowell Building Authority Facilities Revenue Bonds
4th Series A 7.40 2007 125,000 135,010
University of Lowell Building Authority Facilities Revenue Bonds
4th Series A 7.60 2012 50,000 54,180
University of Massachusetts Building Authority Revenue Bonds Series A
(FSA Insured) 7.50 2014 500,000 548,015
University of Massachusetts Building Authority Revenue Bonds Series A
Escrowed to Maturity 7.50 2011 120,000 140,849
Water Resource Authority General Pre-Refunded Revenue Bonds Series 1990A 7.625 2014 500,000 574,855
Water Resource Authority General Pre-Refunded Revenue Bonds Series 1991A 6.50 2019 1,000,000 1,131,140
Water Resource Authority General Revenue Bonds Series 1993C 5.25 2020 1,400,000 1,354,598
Worcester General Obligation Refunding Bonds Series 1995G (MBIA Insured) 5.30 2015 1,000,000 983,290
_____________________________________________________________________________________________________________________________
Total municipal bonds
(Cost: $68,304,612) $74,222,610
_____________________________________________________________________________________________________________________________
Short-term security (0.4%)
_____________________________________________________________________________________________________________________________
Issuer (d,f) Effective Amount Value(a)
yield payable at
maturity
_____________________________________________________________________________________________________________________________
Municipal note
State General Obligation V.R.D.B. Series B
12-01-97 5.90% $ 300,000 $ 300,000
_____________________________________________________________________________________________________________________________
Total short-term security
(Cost: $300,000) 300,000
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $68,604,612)(g) $74,522,610
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE
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 12-31-95 06-30-95
_______________________________________________________________________________________________________
AAA 67% 65%
AA 9 11
A 16 17
BBB 6 5
BB and below 2 2
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:
A.M.T. -- Alternative Minimum Tax - As of Dec. 31, 1995, the value of securities subject to alternative
minimum tax represented 4.1% of net assets.
V.R.D.B. -- Variable Rate Demand Bond
(e) Partially pledged as initial deposit on the following open interest rate futures contracts (see Note 5
to the financial statements):
Type of security Notional amount
Purchase contracts
________________________________________________________
Municipal Bonds Index March 1996 $3,000,000
U.S. Treasury Bonds March 1996 1,500,000
________________________________________________________
Total $4,500,000
________________________________________________________
(f) Interest rate varies to reflect current market conditions; rate shown is the effective rate
on Dec. 31, 1995.
(g) At Dec. 31, 1995, the cost of securities for federal income tax purposes was approximately
$68,547,000 and the approximate aggregate gross unrealized appreciation and depreciation
based on that cost was:
Unrealized appreciation $6,015,000
Unrealized depreciation (39,000)
___________________________________________________________________________________________
Net unrealized appreciation $5,976,000
___________________________________________________________________________________________
/TABLE
<PAGE>
PAGE
<TABLE>
<CAPTION>
Investments in securities
IDS Michigan Tax-Exempt Fund (Percentages represent value of
Dec. 31, 1995 (Unaudited) investments compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (98.6%)
_____________________________________________________________________________________________________________________________
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 $ 209,496
Battle Creek Calhoun County Downtown Development Authority Bonds
Series 1994 7.65 2022 1,250,000 1,399,775
Battle Creek Water Supply System Pre-Refunded Revenue Bonds Series 1990B 6.375 2008-10 1,640,000 1,763,705
Buena Vista School District Saginaw County School Building & Site
Unlimited Tax General Obligation Pre-Refunded Bonds Series 1991 7.20 2016 1,500,000 1,723,890
Charter Township of Redford Limited Tax General Obligation Bonds
County of Wayne Series 1995 (MBIA Insured) 5.25 2016 1,450,000 1,449,884
Chelsea General Obligation Bonds (BIG Insured) 8.20 2006 145,000 159,794
Chippewa Valley School Macomb County Qualified School Building Loan Fund
Unlimited Tax General Obligation Bonds (FGIC Insured) 5.00 2021 1,000,000 961,060
Comstock Park Public School Kent County Unlimited Tax
General Obligation Pre-Refunded Bonds Series 1989 6.00 2016 400,000 431,496
Comstock Park Public School Kent County Unlimited Tax
General Obligation Pre-Refunded Bonds Series 1989 6.875 2010 260,000 287,511
Detroit General Obligation Pre-Refunded Bonds Distributable State Aid
Series 1989 (AMBAC Insured) 7.20 2009 1,000,000 1,113,870
Detroit Sewer Disposal Pre-Refunded Revenue Bonds 8.00 2008 500,000 539,130
Detroit Sewer Disposal Revenue Bonds
(FGIC Insured) 5.70 2023 2,000,000 2,030,740
Detroit Sewer Disposal System Revenue Refunding Bonds
Series 1995B (MBIA Insured) 5.25 2021 1,500,000 1,475,145
Detroit Unlimited Tax General Obligation Bonds Series A 7.25 2009 1,000,000 1,109,930
Detroit Unlimited Tax General Obligation Bonds Series A 8.625 2007 100,000 107,630
Detroit Unlimited Tax General Obligation Bonds Series 1988A 7.875 2008 700,000 768,607
Detroit Unlimited Tax General Obligation Bonds Series 1995A 6.80 2015 1,000,000 1,081,850
Detroit Water Supply System Pre-Refunded Revenue Bonds
Series 1988 (MBIA Insured) 7.875 2008 400,000 444,052
Detroit Water Supply System Refunding Revenue Bonds
Series 1993 (FGIC Insured) 5.00 2023 1,000,000 961,010
Dexter Community Schools Building Site & Refunding Unlimited Tax
General Obligation Bonds 5.00 2017 1,500,000 1,428,075
East Lansing School District School Building & Site Unlimited Tax
General Obligation Bonds Series 1991 6.625 2014 1,000,000 1,090,110
Eastern Michigan University Pre-Refunded Revenue Bonds Residence Hall 7.80 2006 205,000 213,339
Eaton County Water System Limited Tax General Obligation Bonds (MBIA Insured)5.00 2013 2,200,000 2,149,972
Farmington Hills Hospital Finance Authority Revenue Bonds
Botsford General Hospital Series 1992A (MBIA Insured) 6.50 2022 1,500,000 1,629,600
Forest Hills School District Unlimited Tax General Obligation
Pre-Refunded Bonds 7.375 2015 1,000,000 1,131,740
Frenchtown Resort Drainage District Monroe County Drain
Pre-Refunded Bonds Series 1987 7.50 2011-12 615,000 687,656
See accompanying notes to investments in securities.<PAGE>
Garden City School District Authority Pre-Refunded Revenue Bonds 7.80 2010 305,000 338,367
Grand Ledge Public Schools Unlimited Tax General Obligation
Refunding Bonds Counties of Eaton, Clinton & Ionia
Series 1995 (MBIA Insured) 5.375 2024 2,000,000 1,981,160
Grand Rapids Tax Increment Revenue Bonds Series 1994 (MBIA Insured) 6.875 2024 380,000 433,481
Grand Rapids Water Supply System Improvement
Pre-Refunded Revenue Bonds Series 1988 7.875 2018 700,000 765,562
Grand Rapids Water Supply System Improvement Pre-Refunded Revenue Bonds
Series 1990 (FGIC Insured) 7.25 2020 1,250,000 1,411,375
Hemlock Public School District Unlimited Tax General Obligation
Refunding Bonds Counties of Saginaw & Midland
Series 1996 (MBIA Insured) 5.25 2021 1,000,000 979,350
Inkster School District Unlimited Tax General Obligation
Pre-Refunded Bonds (AMBAC Insured) 7.00 2018 450,000 505,490
Iona Public Schools Unlimited Tax General Obligation Bonds (AMBAC Insured) 5.30 2025 1,000,000 979,520
Isoco County Water Supply System Limited Tax General Obligation Bonds
(AMBAC Insured) 5.50 2008-10 575,000 590,162
Jackson County Unlimited Tax General Obligation Refunding Bonds
Series 1987 6.75 2011 150,000 158,130
Kent County Airport Revenue Bonds A.M.T. 5.85 2011 875,000 902,659
Kent County Hospital Pre-Refunded Revenue Bonds Butterworth Hospital
Series 1989A 7.25 2013 500,000 554,385
Kent County Refuse Disposal System Limited Tax
General Obligation Refunding Bonds Series 1987 8.40 2010 150,000 164,837
Lake Orion School District General Obligation Bonds (AMBAC Insured) 5.50 2020 1,000,000 1,001,480
Marquette Hospital Finance Authority Refunding Revenue Bonds
Marquette General Hospital Series 1989C 7.50 2007-19 825,000 904,398
Mason Public Schools Unlimited Tax General Obligation Bonds
County of Ingham School Building & Site Bonds
Series 1995 (FGIC Insured) 5.40 2021 1,760,000 1,755,037
Monroe County Pollution Control Revenue Bonds Detroit Edison
Fermi Plants Series 1990I (FGIC Insured) A.M.T. 7.65 2020 1,000,000 1,134,850
Monroe County Pollution Control Revenue Bonds Detroit Edison
Fermi 2 Plants Series CC (AMBAC Insured) A.M.T. 7.50 2019 1,750,000 1,978,130
Muskegon Hospital Finance Authority Refunding Revenue Bonds Hackley Hospital
Series 1988A 8.00 2008 400,000 430,796
N.I.C.E. Community School District Unlimited Tax General Obligation Bonds
(MBIA Insured) 5.25 2020 2,100,000 2,065,833
Northville Public Schools Unlimited Tax General Obligation Bonds
Series 1991B 7.00 2008 1,500,000 1,676,955
Ovid-Elsie School District Unlimited Tax General Obligation Bonds
(Secondary MBIA Insured) 5.60 2021 1,000,000 1,009,110
Richmond Limited Obligation Refunding Revenue Bonds K mart Series A 6.625 2007 530,000 470,587
Rochester Hill Unlimited Tax General Obligation Bonds Series 1990A 6.00 2009-10 735,000 764,795
Rockford Public Schools Kent County Unlimited Tax
General Obligation Pre-Refunded Bonds 7.375 2019 1,000,000 1,131,740
Romulus Township School District Unlimited Tax General Obligation
Refunding Bonds (FGIC Insured) 5.75 2022 2,500,000 2,550,450
St. Louis Public Schools Unlimited Tax General Obligation
Refunding Revenue Bonds Counties of Gratiot, Midland & Isabella
Series 1995 5.25 2024 755,000 742,912
Sandusky County School District General Obligation
Refunding Bonds (AMBAC Insured) 5.25 2021 500,000 492,385
South Lake District Unlimited Tax General Obligation Bonds 6.80 2010 355,000 400,788
State Building Authority Refunding Revenue Bonds Series 1991I 6.25 2020 2,200,000 2,337,038
State Hospital Finance Authority Hospital Pre-Refunded Revenue Bonds
Detroit Medical Center Series 1988A 8.125 2012 310,000 346,087
State Hospital Finance Authority Hospital Pre-Refunded Revenue Bonds
McLaren Obligated Group Series 1991A 7.50 2021 1,750,000 2,061,133
State Hospital Finance Authority Hospital Refunding Revenue Bonds
Detroit Medical Center Series A 6.25 2013 1,200,000 1,230,408
State Hospital Finance Authority Hospital Refunding Revenue Bonds
Detroit Medical Center Series 1988A 8.125 2012 90,000 98,793
State Hospital Finance Authority Hospital Refunding Revenue Bonds
Detroit Medical Center Series 1988B 8.00 2008 500,000 556,665
State Hospital Finance Authority Hospital Refunding Revenue Bonds
Sinai Hospital of Greater Detroit Series 1995 6.70 2026 1,000,000 1,009,850
State Hospital Finance Authority Pre-Refunded Revenue Bonds
Oakwood Hospital Group Series 1990A (FGIC Insured) 7.10 2018 1,000,000 1,135,390
State Hospital Finance Authority Revenue Bonds Henry Ford Hospital
Series 1990A 7.00 2010 1,000,000 1,129,110
State Hospital Finance Authority Revenue Bonds
Presbyterian Villages of Michigan Obligated Group Series 1995 6.50 2025 1,000,000 987,150
State Housing Development Authority Rental Housing
Refunding Revenue Bonds Series B 5.70 2012 2,500,000 2,503,600
State Public Power Agency Belle River Refunding Revenue Bonds
Series A 5.25 2018 1,000,000 979,560
State Strategic Fund Limited Tax Obligation Refunding Revenue Bonds
Detroit Edison Series 1990BB (MBIA Insured) 7.00 2008 1,000,000 1,195,040
State Strategic Fund Limited Tax Obligation Refunding Revenue Bonds
Detroit Edison Series 1992BB (FGIC Insured) 6.50 2016 1,500,000 1,628,775
State Strategic Fund Limited Tax Obligation Refunding Revenue Bonds
Escrowed to Maturity Oxford Institute 7.875 2005 150,000 178,571
State Strategic Fund Limited Tax Obligation Refunding Revenue Bonds
Ford Motor Series 1991A 7.10 2006 1,650,000 1,896,395
State Strategic Fund Limited Tax Obligation Revenue Bonds
Great Lakes Pulp & Fibre 10.25 2016 1,000,000 1,055,720
State Trunk Line Bonds Series A (FGIC Insured) 5.75 2020 1,065,000 1,091,763
State University Revenue Bonds Series A 5.50 2022 560,000 553,022
State University Revenue Parking System Pre-Refunded Bonds
Ann Arbor Campus Series A 7.40 2015 150,000 155,346
Taylor Tax Increment Finance Authority Bonds Series 1989A (MBIA Insured) 6.00 2007-09 1,205,000 1,244,761
Troy City Downtown Development Authority County of Oakland
Development Bonds Series 1995A (Asset Guaranty) 6.375 2018 1,500,000 1,596,810
Van Buren Township Tax Increment Revenue Bonds Series 1994 8.40 2016 1,000,000 1,127,990
Waterford School District Unlimited Tax General Obligation Bonds
Series Q 6.25 2013 340,000 352,709
Wayne County Airport Revenue Bonds Detroit Metropolitan Airport
Series 1986 (FGIC Insured) A.M.T. 8.00 2014 250,000 263,940
Wayne County Airport Revenue Bonds Detroit Metropolitan Airport
Series 1990A (AMBAC Insured) A.M.T. 7.00 2020 1,080,000 1,189,598
Wyandotte Electric Pre-Refunded Revenue Bonds Series 1987 (AMBAC Insured) 7.875 2017 300,000 326,163
_____________________________________________________________________________________________________________________________
Total municipal bonds
(Cost: $75,000,381) $82,855,178
_____________________________________________________________________________________________________________________________
<PAGE>
Short-term security (1.2%)
_____________________________________________________________________________________________________________________________
Issuer (d,e) Effective Amount Value(a)
yield payable
at
maturity
_____________________________________________________________________________________________________________________________
Municipal note
State Strategic Fund Consumers Power Company Series 1988A, V.R.
04-15-18 5.95% $1,000,000 $1,000,000
_____________________________________________________________________________________________________________________________
Total short-term security
(Cost: $1,000,000) $1,000,000
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $76,000,381)(f) $83,855,178
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE
_____________________________________________________________________________________________________________________________
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 12-31-95 06-30-95
______________________________________________________________________________________________________
AAA 68% 65%
AA 15 17
A 9 10
BBB 6 6
BB and below 1 2
Non-rated 1 --
______________________________________________________________________________________________________
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 abbreviations are used in portfolio descriptions:
A.M.T. -- Alternative Minimum Tax - As of Dec. 31, 1995, the value of
securities subject to alternative minimum tax represented
6.5% of net assets.
V.R. -- Variable Rate
(e) Interest rate varies to reflect current market conditions; rate shown is the effective rate
on Dec. 31, 1995.
(f) Partially pledged as initial deposit on the following open interest rate
futures contracts (see Note 5 to the financial statements):
Type of security Notional amount
Purchase contracts
__________________________________________________________________________
Municipal Bonds Index March 1996 $3,400,000
U.S. Treasury Bonds March 1996 1,600,000
__________________________________________________________________________
Total $5,000,000
__________________________________________________________________________
(g) At Dec. 31, 1995, the cost of securities for federal income tax purposes was approximately
$75,957,000 and the approximate aggregate gross unrealized appreciation and depreciation based on
that cost was:
Unrealized appreciation $7,957,000
Unrealized depreciation (59,000)
__________________________________________________________________________
Net unrealized appreciation $7,898,000
__________________________________________________________________________
/TABLE
<PAGE>
PAGE
<TABLE>
<CAPTION>
Investments in securities (Percentages represent
IDS Minnesota Tax-Exempt Fund value of investments
Dec. 31, 1995 (Unaudited) compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (97.7%)
_____________________________________________________________________________________________________________________________
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 $ 8,540,526
Anoka County Resource Recovery Revenue Bonds Northern States Power
Series 1985 7.15 2008 3,750,000 4,077,338
Appleton Correctional Facility Revenue Bonds Series 1990A 9.875 2020 4,000,000 (e) 2,520,000
Becker Pollution Control Revenue Bonds Northern States Power
Sherburne County Generating Station Units 1 & 2 Series 1987A 7.25 2005 2,000,000 2,025,280
Becker Solid Waste Disposal Facility
Revenue Bonds Liberty Paper Series 1994B A.M.T. 9.00 2015 3,825,000 4,075,614
Bemidji Hospital Facilities 1st Mortgage Revenue Bonds
North Country Health Services Series 1991 7.00 2021 1,755,000 1,935,432
Bloomington Community Development Refunding Revenue Bonds
Note 24th Avenue Motel 8.50 2005 1,811,774 1,848,010
Braham Independent School District #314 Refunding Bonds 5.20 2019 3,340,000 3,304,429
Brooklyn Park Tax Credit Investor Revenue Bonds
Four Courts Apartment Project Series 1995B A.M.T. 7.58 2009 2,450,000 2,494,173
Burnsville Multi-family Housing Refunding Revenue Bonds
FHA-Summit Park Apartments Series 1993 6.00 2033 4,000,000 4,008,600
Chaska Advance Refunded Certificate of Participation
Lease Purchase Agreement Bonds Series 1986C 7.25 2001 800,000 816,384
Columbia Heights Multi-family Housing Revenue Bonds
Crestview Lutheran Home Royce Place Series 1991 10.00 2032 560,000 597,682
Columbia Heights Multi-family Housing Revenue Bonds
Crestview Lutheran Home Royce Place Series 1991 (FHA Insured) 7.75 2032 2,740,000 2,927,416
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 2,348,640
Duluth Hospital Facilities St. Lukes Hospital
Pre-Refunded Revenue Bonds Series 1988 9.00 2018 2,500,000 2,823,000
Duluth Housing and Redevelopment Authority 1st Mortgage Revenue Bonds
Lakeshore Lutheran Home 8.25 2009 125,000 125,009
Duluth Recreation Revenue Certificate of Participation 9.00 2003-07 1,430,000 1,518,403
Eden Prairie Housing Development Refunding Revenue Bonds Eden Commons
Series 1990 (FHA Insured) 8.25 2025 6,300,000 6,516,405
Edina Hospital System Revenue Bonds Fairview Hospital & Health Care Services
Series 1989A 7.125 2019 2,500,000 2,711,775
Edina Multi-family Housing Revenue Bonds Walker Assisted Living
Series 1991 9.00 2031 6,700,000 7,466,815
Faribault Rice & Goodhue County Independent School District #656
General Obligation School Building Bonds Series 1995 (CGIC Insured) 5.75 2015 6,900,000 7,127,355
Faribault Single Family Mortgage Refunding Revenue Bonds Series 1991A 7.50 2011 2,465,000 2,622,267
Fergus Falls Health Care Facilities Revenue Bonds
LRHC Long-Term Care Facility Series 1995 6.50 2025 1,500,000 1,504,830
See accompanying notes to investments in securities.
Hennepin County Lease Revenue Certificate of Participation Series 1991 6.80 2017 7,250,000 7,988,340
Hennepin County Solid Waste Resource Recovery General Obligation
Revenue Bonds Series 1987A 8.20 2009 1,760,000 1,819,646
Hopkins Revenue Bonds Blake School 6.70 2024 3,120,000 3,431,626
Hubbard County Solid Waste Disposal Revenue Bonds
Potlatch Series 1989 A.M.T. 7.375 2013 5,610,000 6,090,048
International Falls Solid Waste Disposal Revenue Bonds Boise Cascade
Series 1990 A.M.T. 7.75 2015 4,000,000 4,235,760
Maplewood Care Institute Series 1994 7.75 2024 3,830,000 3,947,121
Maplewood Multi-family Housing Revenue Bonds Maplewood (FHA Insured) 7.75 2021 2,095,000 2,112,870
Maplewood Multi-family Housing
Carefree Cottages of Maplewood III Refunding Revenue Bonds
Series 1995 A.M.T. 7.20 2032 2,900,000 2,926,216
Minneapolis & St. Paul Housing Board Multi-family Mortgage Revenue Bonds
GNMA Collateral Mortgage Revenue Loan Riverside Plaza Series 1988 A.M.T. 8.25 2030 3,945,000 4,234,011
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 1,569,192
Minneapolis Health Care Facilities Revenue Bonds Fairview Hospital &
Healthcare Services Series 1993A (MBIA Insured) 5.25 2019 6,315,000 6,171,776
Minneapolis Hospital Facility Pre-Refunded Revenue Bonds Lifespan Incorporated
Series 1987A 8.125 2017 3,630,000 3,891,977
Minneapolis Hospital Facility Pre-Refunded Revenue Bonds Lifespan Incorporated
Series 1989A 7.00 2014 5,000,000 5,609,400
Minneapolis & St. Paul Housing & Redevelopment Authority
Health Care System Revenue Bonds Healthspan Series 1993 (AMBAC Insured) 4.75 2018 12,000,000 10,996,440
Minneapolis & St. Paul Housing & Redevelopment Authority
Health Care System Revenue Bonds Series 1995A (CGIC Insured) 5.50 2025 2,500,000 2,488,950
Minneapolis Nursing Home Revenue Bonds Walker Cityview & Southview
Series 1992 8.50 2022 5,515,000 5,947,707
Minneapolis & St. Paul Housing & Redevelopment Authority Health Care System
Revenue Bonds Healthspan Series 1993A (AMBAC Insured) 5.00 2013 4,455,000 4,331,641
Minneapolis Special School District #1
Unlimited General Obligation Bonds (FGIC Insured) 5.375 2014 950,000 963,319
Minnetonka Multi-family Housing Refunding Revenue Bonds Cedar Hill West
(FHA Insured) 7.75 2026 5,560,000 5,816,205
Minnetonka Multi-family Housing Revenue Bonds The Cedar Hills Series 1985 7.50 2017 500,000 536,455
Montevideo Independent School District #129 General Obligation
Unlimited Tax Bonds School Credit Enhancement Program 4.90 2014 1,875,000 1,800,975
New Brighton Tax Credit Investor Revenue Bonds
Polynesian Village Apartments Series 1995B A.M.T. 7.75 2009 2,355,000 2,424,378
Northern Municipal Power Agency Electric System Refunding Revenue Bonds
Series 1989A 7.25 2016 5,475,000 5,894,878
Northern Municipal Power Agency Electric System Pre-Refunded Revenue Bonds
Series 1989A (AMBAC Insured) 7.40 2018 1,000,000 1,111,930
Northern Municipal Power Agency Electric System Pre-Refunded Revenue Bonds
Series 1989B (AMBAC Insured) 7.40 2018 1,800,000 1,982,592
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 1,315,181
Osseo Area Schools Independent School District #279 General Obligation
School Building Bonds 5.40 2011 2,900,000 2,940,745
Owatanna Public Utilities Pre-Refunded Revenue Bonds Series 1991 6.75 2016 1,000,000 1,109,280
Plymouth Multi-family Housing Revenue Bonds Harbor Lane Apartments
Harbor Lane Apartments Series 1993 (Asset Guaranty Insured) A.M.T. 5.90 2013 2,325,000 2,352,110
Port Authority St. Paul General Obligation Bonds Series 1994 5.125 2017 2,885,000 2,839,013
Port Authority St. Paul Unlimited Tax General Obligation Bonds 5.125 2024 2,770,000 2,695,321
Red Wing Industrial Development Refunding Revenue Bonds K mart Series 1993 5.50 2008 400,000 319,436
Richfield Independent School District #280 Unlimited Tax General Obligation
School Building Bonds Series 1993C Inverse Floater
(FGIC Insured) 4.975 2010 3,300,000 (f) 3,349,500
Richfield Independent School District #280 Unlimited Tax General Obligation
School Building Bonds Series 1993C Trust Inverse Floater
(FGIC Insured) 5.075 2012 2,510,000 (f) 2,531,963
Robbinsdale Hospital Pre-Refunded Revenue Bonds
North Memorial Medical Center Series 1989 (AMBAC Insured) 7.375 2019 2,200,000 2,444,706
Rochester Health Care Facility Revenue Bonds Mayo Foundation Series A 4.951 2019 5,000,000 4,649,850
Rochester Multi-family Housing Development Revenue Bonds Civic Square
Series 1991 (FHA Insured) 7.45 2031 4,425,000 4,751,830
Roseville Health Care Facility Refunding Revenue Bonds
Presbyterian Homes of Minnesota Series 1987 7.50 2007 2,250,000 2,341,507
Rush City Independent School District #139 Unlimited Tax School Building
Refunding Bonds School Credit Enhancement Program 5.25 2018 2,595,000 2,584,802
St. Cloud Hospital Facilities Revenue Bonds St. Cloud Hospital Series 1990B
(AMBAC Insured) 7.00 2020 5,000,000 5,742,650
St. Cloud Hospital Facility Refunding Revenue Bonds Series C (AMBAC Insured) 5.30 2020 1,515,000 1,480,155
St. Cloud Hospital Refunding Revenue Bonds Series 1993C (AMBAC Insured) 5.25 2013 1,000,000 1,002,190
St. Cloud Hydro Electric Generation Facility Gross Revenue Bonds Series 1986 7.375 2018 1,100,000 1,149,060
St. Louis Park Health Care Facilities Revenue Bonds
Healthsystem Minnesota Obligated Group Series 1993 (AMBAC Insured) 5.20 2023 6,000,000 5,754,480
St. Louis Park Health Care Facilities Revenue Bonds
Healthsystem Minnesota Obligated Group Series 1993A (AMBAC Insured) 5.20 2016 3,000,000 2,929,770
St. Louis Park Health Care Facilities Revenue Bonds
Healthsystem Minnesota Obligated Group Series 1993B
Inverse Floater (AMBAC Insured) 4.575 2013 7,000,000 (f) 6,492,500
St. Louis Park Health Care Facilities Pre-Refunded Revenue Bonds
Park Nicollet Medical Center Series 1990A 9.25 2020 4,000,000 4,806,680
St. Louis Park Health Care Facilities Pre-Refunded Revenue Bonds
Park Nicollet Medical Center Series 1991A 8.625 2021 2,000,000 2,390,820
St. Louis Park Multi-family Rental Housing Revenue Bonds
Mortgage Loan-Community Housing & Services Series 1985 (FHA Insured) 7.375 2028 2,250,000 2,404,530
St. Paul & Minneapolis Housing & Redevelopment Authority Health Care
Facility Revenue Bonds Group Health Plan Series 1992 6.75 2013 10,500,000 (i) 11,302,620
St. Paul Housing & Development Bonds Highland Retirement (FHA Insured) 7.013 2026 5,210,000 4,894,795
St. Paul Housing & Redevelopment Authority Hospital Facility Revenue Bonds
St. Paul Ramsey Medical Center (AMBAC Insured) 5.55 2023 5,000,000 4,999,650
St. Paul Housing & Redevelopment Authority Commercial Development
Refunding Revenue Bonds Beverly Enterprises Series 1992 7.75 2002 2,540,000 2,650,033
St. Paul Housing & Redevelopment Authority Health Care Facility Revenue Bonds
Lyngblomsten Care Center Series 1993A 7.125 2017 1,915,000 1,985,721
St. Paul Housing & Redevelopment Authority Health Care Facility Revenue Bonds
Lyngblomsten Care Center Series 1993A 9.60 2006 1,005,000 1,096,143
St. Paul Housing & Redevelopment Authority Health Care Facility
Multi-family Rental Housing Revenue Bonds Lynblomsten 1993B 7.00 2024 1,910,000 1,907,402
St. Paul Housing & Redevelopment Authority Sales Tax Revenue Bonds
Civic Center (Secondary MBIA Insured) 5.55 2023 8,500,000 8,512,070
St. Paul Housing & Redevelopment Authority Single Family Mortgage
Refunding Revenue Bonds Middle Income Phase II FNMA Mortgage Backed 6.80 2028 3,460,000 3,736,973
St. Paul Independent School District #625 Full Faith & Credit Certificates
Series 1995C 5.25 2014 2,225,000 2,224,889
St. Paul Independent School District #625 Full Faith & Credit Certificates
Series 1995C 5.40 2010 1,675,000 1,706,222
St. Paul Independent School District #625 Full Faith & Credit Certificates
Series 1995C 5.50 2013 2,100,000 2,146,599
St. Paul Independent School District #625 Unlimited Tax
General Obligation Bonds (CGIC Insured) 5.75 2016 4,000,000 4,125,360
Southern Minnesota Municipal Power Agency Bonds Escrowed to Maturity 5.75 2018 370,000 397,498
Southern Minnesota Municipal Power Agency Power Supply System
Revenue Bonds Zero Coupon Series 1994A (MBIA Insured) 6.67 2019 19,500,000 (g) 5,767,320
Southern Minnesota Municipal Power Agency Power Supply System
Revenue Bonds Zero Coupon Series 1994A (MBIA Insured) 6.88 2022 12,000,000 (g) 3,015,600
Southern Minnesota Municipal Power Agency Pre-Refunded Bonds Series 1988A 8.125 2018 1,315,000 1,444,449
Southern Minnesota Municipal Power Agency Pre-Refunded Bonds Series 1988B 8.125 2018 1,000,000 1,098,440
Southern Minnesota Municipal Power Agency Pre-Refunded Revenue Bonds
Escrowed to Maturity Series A (Secondary MBIA Insured) 5.75 2018 1,600,000 1,718,912
Southern Minnesota Municipal Power Agency Revenue Bonds
(Secondary MBIA Insured) 4.75 2016 4,615,000 4,325,870
Southern Minnesota Municipal Power Agency Series A
(Secondary MBIA Insured) 5.75 2018 4,385,000 4,487,039
Southern Minnesota Municipal Power Agency Un-Refunded Balance
Power Revenue Bonds Series A 5.75 2018 1,895,000 1,920,222
Spring Park Health Care Facility Revenue Bonds Twin Birch Health Care Center
Series 1991 8.25 2011 1,780,000 1,960,118
State General Obligation Various Purpose Pre-Refunded Bonds Series 1990 7.00 2009 7,850,000 8,765,310
State General Obligation Various Purpose Pre-Refunded Bonds Series 1991 6.70 2011 8,000,000 8,957,120
State Higher Education Facility Authority Mortgage
Pre-Refunded Revenue Bonds St. Mary's College Series 2-M 8.375 2017 1,000,000 1,129,380
State Higher Education Facility Authority
Revenue Bonds Macalester College Series 4C 5.55 2016 450,000 453,825
State Housing Facility Authority Housing Development Bonds Series A 7.125 2020 845,000 855,740
State Housing Facility Authority Housing Development Bonds Series 1976A 7.25 2018 205,000 207,628
State Housing Facility Authority Housing Development Bonds Series 1978B 7.10 2021 470,000 475,983
State Housing Facility Authority Housing Development Bonds Series 1979A 7.00 2022 700,000 711,186
State Housing Facility Authority Housing Finance Agency Housing Development
Single Family Mortgage Bonds Series B 7.25 2016 365,000 377,377
State Housing Finance Agency Single Family Mortgage Bonds
Series 1989A A.M.T. 8.00 2029 1,315,000 1,376,384
State Housing Finance Agency Single Family Mortgage Bonds
Series 1990A A.M.T. 7.95 2022 3,455,000 3,661,264
State Housing Finance Agency Single Family Mortgage Bonds
Series 1991A A.M.T. 7.45 2022 3,575,000 3,778,060
State Housing Finance Agency Single Family Mortgage Bonds Series 1992A 6.95 2016 3,135,000 3,351,879
State Housing Finance Agency Single Family Mortgage Revenue Bonds
Series L A.M.T. 6.70 2020 1,100,000 1,142,207
State Public Facilities Authority Water Pollution Control Revenue Bonds
Series 1989A 7.00 2009 6,250,000 6,903,312
State University Board of Regents General Obligation Bonds
Series 1993A Inverse Floater 5.524 2003 5,000,000 (f) 5,212,500
State University Board of Regents General Obligation Pre-Refunded Bonds
Series 1989A 6.00 2011 4,625,000 4,653,028
State University Board State University System Pre-Refunded Revenue Bonds
Series 1989A (MBIA Insured) 7.40 2019 2,250,000 2,491,537
Vadnais Heights Multi-family Housing
Cottages of Vadnais Heights Refunding Revenue Bonds
Series 1995 A.M.T. 7.00 2031 3,200,000 3,211,520
Washington County General Obligation Capital Improvement Bonds
Series 1989A 7.00 2009-10 4,425,000 4,793,558
Washington County Housing & Redevelopment Authority Multi-family Housing
Revenue Bonds Orleans Homes Series 1987-2 A.M.T. 9.00 2017 2,000,000 2,132,520
Western Minnesota Municipal Power Agency Revenue Bonds
Escrowed to Maturity (AMBAC Insured) 6.75 2016 5,935,000 6,588,622
Western Minnesota Municipal Power Agency Supply Refunding Revenue Bonds
Series 1987A 5.50 2015 5,000,000 4,976,650
Western Minnesota Municipal Power Agency Supply Refunding Revenue Bonds
Series 1987A 6.875 2007 2,500,000 2,609,575
Western Minnesota Municipal Power Agency Supply Refunding Revenue Bonds
Series 1987A 7.00 2013 7,300,000 7,621,492
Western Minnesota Municipal Power Agency Supply Refunding Revenue Bonds
Series A (Secondary MBIA Insured) 5.50 2015 6,250,000 6,256,000
White Bear Lake Industrial Development Revenue Bonds
Taylor Series 1988A A.M.T. 8.75 2008 2,250,000 2,502,585
_____________________________________________________________________________________________________________________________
Total municipal bonds
(Cost: $383,307,429) $415,257,102
______________________________________________________________________________________________________________________________
Short-term security (0.3%)
______________________________________________________________________________________________________________________________
Issuer (d,h) Effective Amount Value(a)
yield payable
at maturity
______________________________________________________________________________________________________________________________
Minneapolis & St. Paul Housing & Redevelopment Authority Health Care System
Children's Hospital V.R.D.B. Series B
8-15-25 6.05% $1,500,000 $ 1,500,000
______________________________________________________________________________________________________________________________
Total short-term security
(Cost: $1,500,000) $ 1,500,000
______________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $384,807,429)(j) $416,757,102
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE
_____________________________________________________________________________________________________________________________
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 12-31-95 06-30-95
_______________________________________________________________________________________________________
AAA 48% 47%
AA 20 22
A 16 16
BBB 7 6
BB and below 8 9
Non-rated 1 -
_______________________________________________________________________________________________________
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 abbreviations are used in portfolio descriptions:
A.M.T. -- Alternative Minimum Tax -- As of Dec. 31, 1995, the value of securities subject to alternative minimum tax
represented 11% of net assets
V.R.D.B. -- Variable Rate Demand Bond
(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 Dec. 31, 1995. Inverse floaters in the aggregate represent 4.1% of the Fund's net
assets as of Dec. 31, 1995.
(g) For zero coupon bonds, the interest rate disclosed represents the annualized effective yield on the date of acquisition.
(h) Interest rate varies to reflect current market conditions: rate shown is the effective rate on Dec. 31, 1995.
(i) Partially pledged as initial deposit on the following open interest rate futures contracts (see Note 5 to the financial
statements):
Type of security Notional amount
Purchase contracts
_________________________________________________________________________________________
Municipal Bonds Index March 1996 $18,100,000
U.S. Treasury Bonds March 1996 8,900,000
_________________________________________________________________________________________
Total $27,000,000
_________________________________________________________________________________________
(j) At Dec. 31, 1995, the cost of securities for federal income tax purposes was approximately $384,082,000
and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation $34,470,000
Unrealized depreciation (1,795,000)
_________________________________________________________________________________________
Net unrealized appreciation $32,675,000
_________________________________________________________________________________________
</TABLE>
PAGE
<TABLE>
<CAPTION>
Investments in securities
IDS New York Tax-Exempt Fund (Percentages represent value of
Dec. 31, 1995 (Unaudited) investments compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (98.3%)
_____________________________________________________________________________________________________________________________
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 $ 3,769,280
Broome County Certificates of Participation Public Safety Facility
Series 1994 (MBIA Insured) 5.25 2022 2,650,000 2,590,693
Buffalo Municipal Water Agency Authority Water System Revenue Bonds
Series 1995 (FGIC Insured) 5.00 2025 1,000,000 974,410
Erie County Unlimited Tax General Obligation Bonds
Series B (FGIC Insured) 5.50 2025 700,000 698,964
Erie County Water Authority Fourth Resolution Water Refunding Revenue Bonds
Zero Coupon Series 1992 (AMBAC Insured) 7.30 2017 1,215,000 (e) 253,789
Erie County Water Authority Water Works System Revenue Bonds
Escrowed to Maturity Series 1990A (AMBAC Insured) 6.00 2008 1,765,000 1,942,047
Fallsburg Sullivan County Unlimited Tax General Obligation Improvement
Pre-Refunded Bonds Series 1991 7.05 2011-14 1,300,000 1,493,220
Great Neck North Water Authority Water System Pre-Refunded Revenue Bonds
Series 1989A 6.00 2020 1,415,000 1,509,083
Metropolitan Transportation Authority Commuter Facilities
1987 Service Contract Refunding Bonds Series 5 6.50 2016 1,775,000 1,864,034
Metropolitan Transportation Authority Service Transit Facilities
Pre-Refunded Revenue Bonds Series G 8.50 2011 1,000,000 1,044,800
Metropolitan Transportation Authority Transit Facilities
Pre-Refunded Revenue Bonds Series F 8.375 2016 725,000 757,031
Monroe County Utility General Obligation Pre-Refunded Bonds
Water Improvement System 7.10 2008-09 1,000,000 1,103,050
Municipal Assistance New York City Series 57 7.25 2008 500,000 518,110
Municipal Assistance New York City Series 59 7.75 2006 660,000 706,741
Municipal Assistance New York City Series 62 6.75 2006 2,200,000 2,322,342
New York City Unlimited Tax General Obligation Bonds
Series 1996G 5.75 2017 1,500,000 1,464,135
New York & New Jersey Port Authority Consolidated Revenue Bonds
Series 62 A.M.T. 8.00 2023 1,000,000 1,023,250
New York City General Obligation Bonds Series 1995B 7.00 2016 1,500,000 1,644,840
New York City Municipal Water Finance Authority Water & Sewer System
Revenue Bonds Series B Inverse Floater (MBIA Insured) 5.92 2009 2,000,000 (f) 1,990,000
New York City Municipal Water Finance Authority Water & Sewer System
Revenue Bonds Series B (AMBAC Insured) 5.375 2019 500,000 497,675
New York City Water Finance Authority Water & Sewer System
Pre-Refunded Revenue Bonds Series A (FGIC Insured) 6.75 2014 1,185,000 1,304,021
New York City Water Finance Authority Water & Sewer System
Revenue Bonds Series A (FGIC Insured) 6.75 2014 565,000 616,760
New York City Water Finance Authority Water & Sewer System
Revenue Pre-Refunded Bonds Series 1988A 7.00 2018 1,500,000 1,591,290
See accompanying notes to investments in securities.<PAGE>
State Certificate of Participation City University John J. College 7.25 2007 360,000 375,102
State Dormitory Authority City University System
Consolidated 3rd Resolution Revenue Bonds Series 1994-2 (MBIA Insured) 6.25 2019 1,500,000 1,599,720
State Dormitory Authority City University System Pre-Refunded Revenue Bonds 8.125 2017 3,400,000 3,680,602
State Dormitory Authority City University System Revenue Bonds
Series 1993A 5.75 2013 3,000,000 3,066,630
State Dormitory Authority Revenue Bonds The Devereux Foundation
Series 1995 (MBIA Insured) 5.00 2015 1,000,000 969,710
State Dormitory Authority State University Education Facility
Pre-Refunded Revenue Bonds Series 1990A 7.70 2012 1,750,000 2,027,778
State Dormitory Authority State University Education Facility
Refunding Revenue Bonds Series 1990B 7.50 2011 1,900,000 2,310,837
State Dormitory Authority State University Education Facility
Revenue Bonds (Secondary AMBAC Insured) 5.50 2019 2,000,000 2,074,980
State Dormitory Authority Upstate Community Colleges Series A
(Connie Lee Insured) 5.625 2012 1,500,000 1,538,190
State Energy Research & Development Authority Electric Facility
Revenue Bonds Consolidated Edison Series 1986A A.M.T. 7.50 2021 1,750,000 1,824,498
State Energy Research & Development Authority Electric Facility
Revenue Bonds Consolidated Edison Series 1989A A.M.T. 7.75 2024 1,000,000 1,070,990
State Energy Research & Development Authority Electric Facility
Revenue Bonds Consolidated Edison Series 1990A A.M.T. 7.50 2025 5,000,000 (h) 5,469,800
State Energy Research & Development Authority Gas Facility Revenue Bonds
Brooklyn Union Gas Series I 7.125 2020 2,000,000 2,082,240
State Energy Research & Development Authority Gas Facility Revenue Bonds
Brooklyn Union Gas Series II 7.00 2020 1,500,000 1,548,825
State Energy Research & Development Authority Pollution Control
Refunding Revenue Bonds Rochester Gas & Electric (MBIA Insured) A.M.T. 6.50 2032 2,500,000 2,687,725
State Energy Research & Development Authority Solid Waste Development
Revenue Bonds State Gas & Electric Company Series A (MBIA Insured) A.M.T. 5.70 2028 3,000,000 3,020,190
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 3,352,320
State Housing Finance Authority State University Construction Program
Pre-Refunded Bonds Series A 8.30 2018 500,000 549,455
State Local Government Assistance Bonds Series C 5.50 2022 1,500,000 1,473,285
State Local Government Assistance Pre-Refunded Bonds Series 1991A 7.00 2016 4,000,000 4,585,200
State Medical Care Facility Finance Agency Hospital & Nursing Home
Mortgage Revenue Bonds Montefiore Hospital Series 1989A (FHA Insured) 7.25 2024 1,400,000 1,522,556
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 1,000,320
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 1,465,695
State Medical Care Facility Finance Agency Pre-Refunded Bonds
Presbyterian Hospital Series 1985B 8.00 2025 1,320,000 1,434,523
State Medical Care Facility Finance Agency Revenue Bonds
Buffalo General Hospital Series 1988C (FHA Insured) 7.60 2008 1,500,000 1,663,545
State Medical Care Facility Finance Agency Revenue Bonds
Buffalo General Hospital Series 1988C (FHA Insured) 7.70 2022 1,950,000 2,167,444
State Medical Care Facility Finance Agency Revenue Bonds
Hospital & Nursing Series B (FHA Insured) 6.25 2025 3,675,000 3,848,019
State Medical Care Facility Finance Agency Mental Health Services Facility
Mental Health Services Series F (Secondary Capital Guaranty) 5.375 2014 1,570,000 1,560,015
State Medical Care Facility Finance Agency Revenue Bonds
North Shore University Glen Cove Series A (MBIA Insured) 5.125 2012 1,000,000 990,480
State Medical Care Facility Finance Agency Secured Hospital Revenue Bonds
Series 1987A 7.10 2027 550,000 570,036
State Mortgage Agency Homeowner Mortgage Revenue Bonds Series TT 7.50 2015 4,000,000 4,302,640
State Mortgage Agency Homeowner Mortgage Revenue Bonds Series 27 6.90 2015 3,000,000 (h) 3,222,510
State Mortgage Agency Revenue Bonds Series 9 A.M.T. 7.30 2017 970,000 1,003,300
State Thruway Authority Local Highway & Bridge Service Contract Bonds
Series 1991 6.00 2011 2,500,000 2,521,450
State Urban Development Correction Facility
Pre-Refunded Revenue Bonds Series 1986 8.00 2015 750,000 765,180
State Urban Development Correction Facility Pre-Refunded Revenue Bonds
Series 1 (FSA Insured) 7.50 2020 4,500,000 5,132,790
State Urban Development Correctional Capital Facilities
Refunding Revenue Bonds Series 1993A 5.25 2021 2,500,000 2,351,025
State Urban Development Correctional Capital Facilities
Revenue Bonds Series 5 (MBIA Insured) 5.50 2025 750,000 751,837
State Urban Development Revenue Bonds Higher Education Applied Technology
Grants Series 1995 (MBIA Insured) 5.75 2015 1,000,000 1,038,550
Suffolk County General Obligation Public Improvement Refunding Bonds
Series G (MBIA Insured) 5.40 2014 1,000,000 1,012,930
Triborough Bridge & Tunnel Authority General Purpose
Pre-Refunded Revenue Bonds Series S 7.00 2021 3,000,000 3,413,670
Triborough Bridge & Tunnel Authority Special Obligation Refunding Bonds
Series 1991B (FGIC Insured) 6.875 2015 2,000,000 2,233,220
United Nations Development Senior Lien Pre-Refunded Revenue Bonds
1986 Phase II & III 7.875 2006 250,000 260,423
United Nations Development Senior Lien Refunding Revenue Bonds
Series 1992A 6.00 2026 4,500,000 4,591,395
_____________________________________________________________________________________________________________________________
Total municipal bonds
(Cost: $114,777,638) $125,811,195
_____________________________________________________________________________________________________________________________
Short-term securities (0.9%)
______________________________________________________________________________________________________________________________
Issuer (c,d,g) Effective Amount
Value(a)
yield payable at
maturity
_____________________________________________________________________________________________________________________________
Municipal notes
New York City General Obligation Bonds Series A-4 V.R.
08-21-22 5.95% $300,000 $ 300,000
New York City General Obligation Bonds Series B (FGIC Insured) V.R.
10-01-22 5.50 400,000 400,000
New York City Municipal Water Authority Water & Sewer System
Revenue Bonds Series A (FGIC Insured) V.R.
06-15-25 5.50 500,000 500,000
_____________________________________________________________________________________________________________________________
Total short-term securities
(Cost: $1,200,000) $ 1,200,000
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $115,977,638)(i) $127,011,195
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE
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 12-31-95 06-30-95
_______________________________________________________________________________________________________
AAA 56% 55%
AA 17 20
A 14 15
BBB 13 10
BB and below -- --
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 abbreviations are used in portfolio descriptions:
A.M.T. -- Alternative Minimum Tax -- As of Dec. 31, 1995, the value of securities subject to
alternative minimum tax represented 12.6% of net assets.
V.R. -- Variable Rate
(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 Dec. 31, 1995. Inverse floaters in the aggregate represent
1.6% of the Fund's net assets as of Dec. 31, 1995.
(g) Interest rate varies to reflect current market conditions; rate shown is the effective rate on Dec. 31, 1995.
(h) Partially pledged as initial deposit on the following open interest rate futures contracts
(see Note 5 to the financial statements):
Type of security Notional amount
Purchase contracts
__________________________________________________________________________
Municipal Bonds Index March 1996 $6,400,000
U.S. Treasury Bonds March 1996 3,100,000
__________________________________________________________________________
Total $9,500,000
__________________________________________________________________________
(i) At Dec. 31, 1995, the cost of securities for federal income tax purposes was approximately $115,927,000
and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation $11,139,000
Unrealized depreciation (55,000)
______________________________________________________________________________________________________
Net unrealized appreciation $11,084,000
______________________________________________________________________________________________________
/TABLE
<PAGE>
PAGE
<TABLE>
<CAPTION>
Investments in securities
IDS Ohio Tax-Exempt Fund
Dec. 31, 1995 (Unaudited) (Percentages represent value of
investments compared to net assets)
_____________________________________________________________________________________________________________________________
Municipal bonds (98.2%)
_____________________________________________________________________________________________________________________________
Name of issuer and Coupon Maturity Principal Value(a)
title of issue (b,c,d) rate year amount
<S> <C> <C> <C> <C>
_____________________________________________________________________________________________________________________________
Barberton Limited Tax Various Purpose General Obligation Bonds
Series 1989-1 7.35% 2009 700,000 761,579
Bellefontaine Hospital Facility
Refunding Revenue Bonds
Mary Rutan Health Association of Logan County
Series 1993 6.00 2013 1,000,000 975,320
Bellefontaine Water System Mortgage
Revenue Bonds Series 1995 (AMBAC) 5.00 2015 690,000 673,813
Buckeye Valley Local School District School Improvement Unlimited Tax
General Obligation Bonds Series 1995A (MBIA Insured) 5.25 2020 1,000,000 984,920
Butler County Hospital Facility Improvement Refunding Revenue Bonds 7.50 2010 1,750,000 1,858,798
Clermont County Hospital Facility Revenue Bonds Mercy Health System
Province of Cincinnati Series 1989A (AMBAC Insured) 7.50 2019 750,000 854,355
Cleveland Airport Systems Revenue Bonds
Series 1990A (MBIA Insured) A.M.T. 7.40 2020 500,000 559,215
Cleveland General Obligation Pre-Refunded Bonds 7.375 2003 125,000 134,562
Cleveland Public Power System 1st Mortgage
Pre-Refunded Revenue Bonds 8.375 2017 100,000 108,868
Cleveland Waterworks Improvement 1st Mortgage Refunding Revenue Bonds
Series F 1992B (AMBAC Insured) 6.25 2016 1,000,000 (e) 1,070,940
Cleveland Waterworks Improvement 1st Mortgage Revenue Bonds Series 1987E 6.00 2017 200,000 200,732
Cleveland Waterworks Improvement 1st Mortgage Pre-Refunded Revenue Bonds
Series 1987E 7.875 2016 650,000 690,378
Coshocton County Solid Waste Disposal Refunding Revenue Bonds
Stone Container Series 1992 7.875 2013 1,000,000 1,083,340
Cuyahoga County Hospital Improvement Revenue Bonds
Cleveland Clinic Foundation 7.00 2013 500,000 518,175
Cuyahoga County Hospital Improvement Pre-Refunded Revenue Bonds
Cleveland Clinic Foundation Series 1987A 7.875 2010 275,000 300,688
Cuyahoga County Hospital Improvement Revenue Bonds
Mount Sinai Medical Center Series 1991 (AMBAC Insured) 6.625 2021 600,000 656,772
Cuyahoga County Hospital Improvement Revenue Bonds
University Hospitals Health System Series 1992 (AMBAC Insured) 6.50 2011 500,000 546,115
Cuyahoga County Hospital Refunding Revenue Bonds
Cleveland Clinic Foundation Series 1992 5.50 2011 1,500,000 1,530,510
Cuyahoga County Hospital Refunding Revenue Bonds
Mount Sinai Medical Center Series 1987A 8.125 2014 400,000 429,472
Cuyahoga County Hospital Revenue Bonds Meridia Health Series 1991 7.00 2023 1,000,000 (e) 1,074,820
Cuyahoga County Limited Tax General Obligation Bonds 5.60 2013 500,000 517,325
Cuyahoga Hospital Revenue Bonds Metrohealth System Series 1989
(MBIA Insured) 6.00 2019 1,000,000 1,020,010
See accompanying notes to investments in securities.<PAGE>
Dayton Intl Airport Refunding Revenue Bonds (AMBAC) 5.25 2015 1,000,000 992,630
Delaware County Sewer Improvement Limited Tax General Obligation Bonds 5.25 2015 1,000,000 995,070
Dover Limited Tax Improvement General Obligation
Municipal Sewer System Bonds 7.10 2009 1,000,000 1,083,370
Dublin City School District: Franklin, Delaware, & Union Counties
Unlimited General Obligation School Building Improvement Bonds
Series 1995 (FGIC Insured) 5.00 2018 1,500,000 1,454,175
Elyria Limited Tax Improvement General Obligation
Recreation Facility Bonds 7.10 2009 715,000 774,610
Erie County Hospital Improvement Refunding Revenue Bonds
Firelands Community Hospital Series 1992 6.75 2015 2,000,000 2,108,520
Franklin County Convention Facilities Authority
Tax & Lease Revenue Anticipation
Pre-Refunded Bonds (MBIA Insured) 7.00 2019 1,500,000 1,710,840
Hamilton County Sewer System Improvement
Metropolitan Sewer District of Greater Cincinnati
Refunding Revenue Bonds Series A (FGIC Insured) 5.50 2017 1,000,000 1,007,560
Highland Heights Limited Tax Improvement General Obligation Street Bonds 7.75 2008 400,000 443,160
Hilliard County School District School Improvement Unlimited Tax
General Obligation Bonds Series 1995A (FGIC Insured) 5.75 2019 1,000,000 1,033,980
Kettering School District Improvement General Obligation Bonds
(FGIC Insured) 5.25 2022 1,000,000 984,370
Lake County Water System Limited Tax Improvement General Obligation
Pre-Refunded Bonds Series 1987-2 8.125 2010 700,000 767,228
Lakewood Unlimited Tax General Obligation Bonds 5.50 2015 1,500,000 1,539,540
Lakota Local School District Butler County School Unlimited Tax
Improvement Bonds 7.00 2012 500,000 551,450
Lakota Local School District Butler County School Unlimited Tax Improvement
Pre-Refunded Bonds 7.90 2011 200,000 221,418
Lakota Local School District Unlimited Tax Improvement
General Obligation Bonds (AMBAC Insured) 6.25 2014 2,000,000 2,164,300
Lima Limited Tax Improvement General Obligation
Sanitary Sewer System Pre-Refunded Bonds 8.25 2012 200,000 219,666
Lorain County Hospital Facilities Refunding Revenue Bonds
EMH Regional Medical Center Series 1995 (AMBAC Insured) 5.375 2021 2,000,000 1,973,720
Lucas County Hospital Refunding Revenue Bonds St. Vincent's Medical Center
Series B (MBIA Insured) 5.25 2020 2,000,000 1,956,600
Lucas County Hospital Pre-Refunded Revenue Bonds Toledo Hospital
(MBIA Insured) 7.00 2014 100,000 104,351
Lucas County Limited Tax General Obligation
Various Purpose Improvement Bonds
Series 1995-1 (AMBAC Insured) 5.40 2015 1,250,000 1,245,412
Mahoning County Hospital Improvement Bonds
Western Reserve Care System (MBIA Insured) 5.375 2015 1,500,000 1,463,475
Marietta Sewer System Improvement Bonds (BIG Insured) 7.50 2007 200,000 215,624
Marion County Health Care Facilities Improvement Refunding Revenue
Bonds United Church Homes Series 1993 6.375 2010 1,000,000 1,020,090
Marysville Sewer System 1st Mortgage Revenue Bonds Series 1988
(BIG Insured) A.M.T. 7.85 2008 400,000 438,048
Marysville Water System Mortgage Revenue Bonds Series 1991 (MBIA Insured) 7.05 2021 1,000,000 1,151,860
Medina County Hospital Revenue Bonds Medina County Community Hospital
Series 1987 (AMBAC Insured) 6.875 2016 100,000 107,098
Miami County Hospital Facility Refunding Revenue Bonds
Upper Valley Medical Center Series 1987A 8.375 2013 75,000 79,645
Montgomery County Health Facilities Revenue Bonds Friendship Village Dayton
Series 1990A 9.25 2016 1,000,000 1,060,840
Montgomery County Water Revenue Bonds Greater Moraine - Beavercreek
District (FGIC Insured) 6.25 2017 1,000,000 1,078,270
Parma Hospital Improvement Revenue Bonds Parma Community General Hospital
Series 1989B (MBIA Insured) 7.125 2013 500,000 546,950
Pickerington Local School District Unlimited Tax General Obligation
Pre-Refunded Bonds (AMBAC Insured) 7.00 2013 1,000,000 1,140,560
Rural Loraine County Water Authority Water Resource Improvement
Pre-Refunded Revenue Bonds Series 1991 (AMBAC Insured) 7.00 2011 1,000,000 1,145,760
South Euclid Lyndhurst School District General Obligation Bonds
(FGIC Insured) 5.25 2018 1,000,000 985,540
Southwest Licking Local School District School Facilities Unlimited Tax
General Obligation Bonds (FGIC Insured) 5.75 2022 1,000,000 1,029,660
Southwest Local School District Hamilton & Butler Counties School
Unlimited Tax Improvement Bonds (AMBAC Insured) 7.65 2010 500,000 576,875
State Air Quality Development Authority Refunding Revenue Bonds
JMG Funding Limited Partnership (AMBAC Insured) A.M.T. 6.375 2029 500,000 546,860
State Air Quality Development Authority Refunding Revenue Bonds
Series 1994 (AMBAC Insured) A.M.T. 6.375 2029 2,000,000 2,187,440
State Air Quality Development Authority Revenue Bonds
Cleveland Electric Illuminating Series A 7.00 2009 345,000 345,014
State Air Quality Development Authority Revenue Bonds
Columbus & Southern Series A (FGIC Insured) 6.375 2020 1,000,000 1,084,590
State Building Authority Local Jail Grant Bonds Series 1989A
(MBIA Insured) 7.35 2009 500,000 571,025
State Building Authority State Correctional Facility Revenue Bonds Series B 7.125 2009 75,000 77,974
State Building Authority State Facility Pre-Refunded Bonds
Columbus State Office Building Series 1985C 7.35 2005 1,000,000 1,138,480
State Higher Educational Facility Pre-Refunded Revenue Bonds
Oberlin College Series 1989 7.375 2014 500,000 563,505
State Housing Finance Agency Mortgage Revenue Bonds
Aristocrat South Board & Care Series 1991A (FHA Insured) A.M.T. 7.30 2031 1,500,000 1,600,260
State Housing Finance Agency Single Family Mortgage Revenue Bonds
Series 1990A (GNMA Insured) A.M.T. 7.80 2030 600,000 635,856
State Housing Finance Agency Single Family Mortgage Revenue Bonds
Series 1990C (GNMA Insured) A.M.T. 7.85 2021 910,000 963,135
State Municipal Electric Generation Agency Joint Venture #5 Revenue Bonds
(AMBAC Insured) 5.375 2024 2,000,000 1,981,240
State Turnpike Revenue Bonds Series A 5.75 2024 1,000,000 1,017,590
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 1,980,340
State Water & Air Quality Development Authority
Cleveland Electric Illumination
Pollution Control Refunding Revenue Bonds
Series 1995 7.70 2025 1,000,000 1,072,940
State Water Development Authority Bonds Toledo Edison Series 1994 A.M.T. 8.00 2023 1,000,000 1,083,650
State Water Development Authority Pollution Control Revenue Bonds
Phillip Morris 7.25 2008 150,000 161,002
State Water Development Authority Water Development Pre-Refunded Bonds
Pure Water Series 1987I 7.75 2006-14 200,000 214,764
State Water Development Authority Water Development Pre-Refunded Bonds
Pure Water Series 1988I 7.00 2014 500,000 534,520
State Water Development Authority Water Development Refunding Revenue Bonds
Pure Water (AMBAC Insured) 5.50 2018 750,000 752,587
State Water Development Solid Waste Disposal
Northstar BHP Steel LLC-Cargill Series 1995 Revenue Bonds A.M.T. 6.30 2020 500,000 528,330
Summit County Industrial Development Revenue Bonds Century Products 7.75 2005 100,000 105,630
Summit County Limited Tax General Obligation Pre-Refunded Bonds
Human Services Facility (AMBAC Insured) 8.00 2007 100,000 109,571
Sycamore Board of Education Community School District
Hamilton County School Improvement Bonds 6.50 2009 500,000 523,130
Toledo Limited Tax General Obligation Bonds 5.70 2010 1,005,000 1,054,657
University General Receipts Refunding Revenue Bonds
Student Recreation Center (FGIC Insured) 5.00 2013 1,500,000 1,477,260
University of Cincinnati General Receipt Pre-Refunded Bonds Series I-1 7.10 2010 750,000 834,697
University of Toledo General Receipt Pre-Refunded Bonds Series 1990
(MBIA Insured) 7.125 2020 500,000 567,200
Warren County Various Purpose Limited Tax General Obligation Bonds
Series 1992 6.10 2012 500,000 554,395
Whitehall City School District Franklin County Unlimited Tax
Improvement General Obligation Pre-Refunded
School Building Construction 7.25 2013 500,000 565,425
_____________________________________________________________________________________________________________________________
Total municipal bonds
(Cost: $70,386,470) $76,756,039
_____________________________________________________________________________________________________________________________
Total investments in securities
(Cost: $70,386,470)(f) $76,756,039
_____________________________________________________________________________________________________________________________
<PAGE>
PAGE
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 12-31-95 06-30-95
___________________________________________________________________________________________________________
AAA 68% 72%
AA 10 7
A 10 10
BBB 6 6
BB and below 6 5
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:
A.M.T. -- Alternative Minimum Tax -- As of Dec. 31, 1995, the value of securities subject to alternative minimum tax
represented 10.9% of net assets.
(e) Partially pledged as initial deposit on the following open interest rate futures contracts (see Note 5 to the financial
statements):
Type of security Notional amount
Purchase contracts
______________________________________________________________________________________________________
Municipal Bonds Index March 1996 $3,200,000
U.S. Treasury Bonds March 1996 1,600,000
______________________________________________________________________________________________________
Total $4,800,000
______________________________________________________________________________________________________
(f) At Dec. 31, 1995, the cost of securities for federal income tax purposes was approximately $70,337,000 and
the approximate aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation $6,427,000
Unrealized depreciation (8,000)
______________________________________________________________________________________________________
Net unrealized appreciation $6,419,000
______________________________________________________________________________________________________
/TABLE
<PAGE>
PAGE
Board members and officers
Board members and officers of the Fund
_____________________________________________________________________
President and interested board member
William R. Pearce
President of all funds in the IDS MUTUAL FUND GROUP.
_____________________________________________________________________
Independent board members
Lynne V. Cheney
Distinguished fellow, American Enterprise Institute for
Public Policy Research.
Robert F. Froehlke
Former president of all funds in the IDS MUTUAL FUND GROUP.
Heinz F. Hutter
Former president and chief operating officer, Cargill, Inc.
Anne P. Jones
Attorney and telecommunications consultant.
Donald M. Kendall
Former chairman and chief executive officer, PepsiCo, Inc.
Melvin R. Laird
Senior counsellor for national and international affairs,
The Reader's Digest Association, Inc.
Lewis W. Lehr
Former chairman and chief executive officer,
Minnesota Mining and Manufacturing Company (3M).
Edson W. Spencer
Former chairman and chief executive officer, Honeywell, Inc.
Wheelock Whitney
Chairman, Whitney Management Company.
C. Angus Wurtele
Chairman of the board and chief executive officer, The Valspar Corporation.
_____________________________________________________________________
Interested board members who are officers and/or employees of AEFC
William H. Dudley
Exective vice president, AEFC.
David R. Hubers
President and chief executive officer, AEFC.
John R. Thomas
Senior vice president, AEFC.
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Officers who are officers and/or employees of AEFC
Peter J. Anderson
Vice President of all funds in the IDS MUTUAL FUND GROUP.
Melinda S. Urion
Treasurer of all funds in the IDS MUTUAL FUND GROUP.
___________________________________________________________________
Other officer
Leslie L. Ogg
Vice president general Counsel and secretary of all funds in
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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 deposit (CDs) and
other bank securities.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.)
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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.
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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.
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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.
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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.
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IDS Equity Select Fund
Invests primarily in a combination of moderate growth stocks,
higher-yielding equities and bonds. Seeks growth of
capital and income.
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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.
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IDS Stock Fund
Invests in common stocks of companies representing many
sectors of the economy. Seeks current income and growth of capital.
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IDS Equity Value Fund
Invests primarily in undervalued common stocks that offer potential
for growth of capital and income.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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IDS Progressive Fund
Invests primarily in undervalued common stocks. The fund holds
stocks for the long term with the goal of capital growth.
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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.
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For more complete information about any of these funds, including charges
and expenses, you can obtain a prospectus by contacting your financial
planner or writing to American Express Shareholder Service, P.O. Box 534,
Minneapolis, MN 55440-0534. Read it carefully before you invest or send money.
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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 (TouchTone 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
AMERICAN EXPRESS FINANCIAL ADVISORS
IDS State Tax-Exempt Funds
IDS Tower 10
Minneapolis, MN 55440-0010
