Prospectus Supplement - September 30, 1997 *
IDS State Tax-Exempt Funds Prospectus (August 29, 1997)
Form No. S-6328 L (8/97)
California Tax-Exempt Fund
Massachusetts Tax-Exempt Fund
Michigan Tax-Exempt Fund
Minnesota Tax-Exempt Fund
New York Tax-Exempt Fund
Ohio Tax Tax-Exempt Fund
The above referenced prospectus has been modified as follows:
Appendix B - page 65 ---the first sentence Using 36.78%, you may determine that
a tax-exempt yield of 5% is equivalent to earning a taxable 7.91% yield is
revised to: Using 36.59%, you may determine that a tax-exempt yield of 5% is
equivalent to earning a taxable 7.89% yield.
Appendix B page 66
The chart under Step 1: Calculating your marginal tax rate has been modified as
follows:
<TABLE>
<CAPTION>
Adjusted gross income*
--------------- ---------------- --------------- ---------------
Taxable income** $0 $121,200 $181,800
Married Filing Jointly to to to OVER
$121,200(1) $181,800(2) $304,300(3) $304,300(2)
- ------------------------------------------- --------------- ---------------- --------------- ---------------
<S> <C> <C> <C> <C>
$ 0 - $ 14,400 21.02%
14,400 - 16,000 21.51
16,000 - 22,000 21.94
22,000 - 26,000 23.15
26,000 - 27,000 23.70
27,000 - 40,000 23.75
40,000 - 41,200 24.55
41,200 - 45,000 36.09
45,000 - 90,000 36.10 36.85%
90,000 - 99,600 36.14 36.89
99,600 - 151,750 38.80 39.63 40.75%
151,750 - 271,050 43.24 44.20 45.50 44.20%
271,050 + 48.92*** 47.48
- ------------------------------------------- --------------- ---------------- --------------- ---------------
<PAGE>
- ------------------------------------------- --------------- ---------------- --------------- ---------------
Taxable income** $0 $121,200
Single to to OVER
$121,200(1) $243,700(3) $243,700(2)
- ------------------------------------------- --------------- ---------------- --------------- ---------------
$ 0 - $ 8,000 21.02%
8,000 - 8,400 21.44
8,400 - 11,000 21.94
11,000 - 12,000 22.57
12,000 - 13,000 23.15
13,000 - 20,000 23.70
20,000 - 24,650 24.55
24,650 - 50,000 36.10
50,000 - 59,750 36.14
59,750 - 124,650 38.80 40.19
124,650 - 271,050 43.24 44.85 44.20
271,050 - 47.48
- ------------------------------------------- --------------- ---------------- --------------- ---------------
</TABLE>
<PAGE>
Appendix B page 67
The chart under Step 2: Determining your combined federal, New York state and
New York City taxable yield equivalents has been modified as follows:
<TABLE>
<CAPTION>
For these Tax-Exempt Rates:
--------- --------- --------- --------- --------- --------- --------- ---------
3.00% 3.50% 4.00% 4.50% 5.00% 5.50% 6.00% 6.50%
--------- --------- --------- --------- --------- --------- --------- ---------
Marginal Tax Rates Equal the Taxable Rates shown below:
- ---------------------------- --------- --------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
21.02% 3.80 4.43 5.06 5.70 6.33 6.96 7.60 8.23
21.44% 3.82 4.46 5.09 5.73 6.36 7.00 7.64 8.27
21.51% 3.82 4.46 5.10 5.73 6.37 7.01 7.64 8.28
21.94% 3.84 4.48 5.12 5.76 6.41 7.05 7.69 8.33
22.57% 3.87 4.52 5.17 5.81 6.46 7.10 7.75 8.39
23.15% 3.90 4.55 5.20 5.86 6.51 7.16 7.81 8.46
23.70% 3.93 4.59 5.24 5.90 6.55 7.21 7.86 8.52
23.75% 3.93 4.59 5.25 5.90 6.56 7.21 7.87 8.52
24.55% 3.98 4.64 5.30 5.96 6.63 7.29 7.95 8.61
36.09% 4.69 5.48 6.26 7.04 7.82 8.61 9.39 10.17
36.10% 4.69 5.48 6.26 7.04 7.82 8.61 9.39 10.17
36.14% 4.70 5.48 6.26 7.05 7.83 8.61 9.40 10.18
36.85% 4.75 5.54 6.33 7.13 7.92 8.71 9.50 10.29
36.89% 4.75 5.55 6.34 7.13 7.92 8.71 9.51 10.30
38.80% 4.90 5.72 6.54 7.35 8.17 8.99 9.80 10.62
39.63% 4.97 5.80 6.63 7.45 8.28 9.11 9.94 10.77
39.89% 4.99 5.82 6.65 7.49 8.32 9.15 9.98 10.81
40.19% 5.02 5.85 6.69 7.52 8.36 9.20 10.03 10.87
40.75% 5.06 5.91 6.75 7.59 8.44 9.28 10.13 10.97
43.24% 5.29 6.17 7.05 7.93 8.81 9.69 10.57 11.45
44.20% 5.38 6.27 7.17 8.06 8.96 9.86 10.75 11.65
44.85% 5.44 6.35 7.25 8.16 9.07 9.97 10.88 11.79
45.50% 5.50 6.42 7.34 8.26 9.17 10.09 11.01 11.93
46.43% 5.60 6.53 7.47 8.40 9.33 10.27 11.20 12.13
47.48% 5.71 6.66 7.62 8.57 9.52 10.47 11.42 12.38
48.20% 5.79 6.76 7.72 8.69 9.65 10.62 11.58 12.55
48.92% 5.87 6.85 7.83 8.81 9.79 10.77 11.75 12.73
- ---------------------------- --------- --------- --------- --------- --------- --------- --------- ---------
</TABLE>
*Destroy August 29, 1998
