Oppenheimer Florida Tax-Exempt Fund
Annual Report December 31, 1993
<PAGE>
Fund Facts
In this report:
Answers to three timely questions you should ask your Fund's managers.
* With interest rates at low levels, what moves has the Fund made to offer an
attractive yield?
* Why does the Fund's current strategy emphasize investments in higher quality
Florida municipal bonds?
* What is the outlook for the Florida municipal bond market in 1994?
Five Facts Every Shareholder Should Know About
Oppenheimer Florida Tax-Exempt Fund
1 The Fund's investment objective is to seek high current income exempt
from federal income tax and shares exempt from the Florida intangibles
tax. It consists principally of investment grade quality municipal
securities issued by Florida state and local municipalities.
2 The standardized yield for Class A shares for the 30 days ended
December 31, 1993 was 5.26%. Standardized yield for Class B shares was
5.10% for the same period.(1)
3 Shareholders should be aware that the net asset value of Oppenheimer
Florida Tax-Exempt Fund can fluctuate as market conditions vary--
usually increasing as interest rates decline and decreasing as
interest rates rise. The Fund's investment strategy emphasizes careful
analysis and diversification to preserve capital and minimize share
price fluctuation.
4 Under the new, higher federal tax rates, the value of tax-free income
has increased. The table shows the taxable equivalent yield required
to match the Fund's current yield for the new top tax brackets.
Here is the taxable equivalent of the Fund's yield
for a Florida resident in the...
Fund 31% effective 36% effective 39.6% effective
Yield on federal federal federal
12/31/93 tax bracket is: tax bracket is:tax bracket is:
Class A(1) 5.26% 7.62% 8.22% 8.71%
Class B(1) 5.10% 7.39% 7.97% 8.44%
This table assumes that an investor's highest effective tax bracket
applies to the change in taxable income resulting from a switch
between taxable and non-taxable investments. A portion of the Fund's
distributions may be subject to income taxes. For investors subject
to alternative minimum tax, a portion of the Fund's distributions may
increase that tax.
5 "One element of our current strategy is to invest in high-quality
municipal securities. As of December 31, 1993, 55.1% of the portfolio
was rated AAA.(2) We focus on higher quality Florida bonds because
their returns are more dependable relative to lower-rated bonds which
provide only slightly higher yields. Another reason we invest in
higher quality bonds is that a large portion of the Florida municipal
bond market is insured, and their yields are attractive due to the
large supply."
Portfolio Manager, Robert Patterson, December 31, 1993
1. Standardized yield is net investment income calculated on a yield to
maturity basis for the 30-day period ended 12/31/93, divided by the maximum
offering price at the end of the period, compounded semi-annually and then
annualized.During a portion of the period for which standardized yield
information is depicted, the Fund's investment advisor assumed or waived
some of the Fund's expenses. Without that expense assumption or waiver,
which is still in effect, the standardized yield would have been less.
Past performance does not guarantee future results. The principal value and
return of an investment in the Fund will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.
2. The Fund's portfolio is subject to change.
2 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
Report to Shareholders
We would like to extend a warm welcome to all new shareholders of
Oppenheimer Florida Tax-Exempt Fund. The Fund seeks current income exempt
from federal income tax as is consistent with preservation of capital. The
Fund also offers the opportunity of owning securities exempt from the
Florida intangibles tax. It invests primarily in Florida municipal
securities.
The standardized yield for Class A shares was 5.26% and 5.10% for Class B
shares for the 30 days ended December 31, 1993.(3)
The market for Florida municipal bonds followed many of the trends for the
municipal bond market nationwide. During 1993, three key factors combined to
create a strong municipal bond market: declining interest rates, an increase
in federal tax rates and gradual economic growth.
Declining interest rates caused bond prices to appreciate. Low interest
rates also led to a record supply of new municipal bond issues used to
rebuild infrastructure and meet other obligations. The increase in federal
tax rates made municipal bonds even more attractive to investors in higher
tax brackets. This demand also increased the price of bonds. Additionally,
the improving economy in Florida helped increase the value of municipal
bonds as state and local governments' ability to meet their debt obligations
strengthened.
In response to these developments, the Fund's current strategy is to stay fully
invested in higher quality securities with an emphasis on essential service
revenue bonds. As of December 31, 1993, 55.1% of the portfolio was invested in
AAA-rated bonds.(4) We favor higher quality bonds because they offer more
dependable returns relative to lower-rated bonds which provide only slightly
higher yields. With interest rates at low levels, another part of our strategy
is to lock in attractive rates on the portfolio's securities using call
protection. This helps to maintain the income available to the Fund from these
investments.
In building the portfolio, we diversify both geographically within the state
and by market sector, with holdings in utilities, transportation and housing
issues. Recent purchases include Gainesville Utilities System and Dade
County Aviation Authority.(3)
Going forward, the Fund will continue to seek attractive opportunities in
high-quality essential service revenue bonds, particularly in the hospital
sector as the national healthcare program evolves. We also believe that more
investors seeking tax-free income in 1994 will help maintain demand for
Florida municipal bonds.
We appreciate the trust you have placed in the Fund's management. We will
continue to do our best to provide you with tax-exempt income in the future.
(Donald W. Spiro signature)
Donald W. Spiro
President, Oppenheimer Multi-State Tax-Exempt Trust
January 21, 1994
"The increase in federal tax rates made municipal bonds even more
attractive."
3. See footnote 1, page 2.
4. The Fund's portfolio is subject to change.
3 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
Statement of Investments December 31, 1993
<TABLE>
<CAPTION>
Ratings:
Moody's/S&P's/Fitch's Face Market Value
(Unaudited) Amount (See Note 1)
<S> <C> <C> <C>
Municipal Bonds and Notes-90.9%
Florida-77.7%
Arcadia, Florida Dedicated Pool Local Government
Revenue Bonds, FGIC Insured, 5.25%, 12/1/15 Aaa/AAA/AAA $100,000 $ 99,608
Broward County, Florida Resource Recovery Revenue Bonds,
Broward Waste Energy-LP North Project, 7.95%, 12/1/08 A/A- 215,000 246,433
Dade County, Florida Aviation Revenue Refunding Bonds,
Series Y, 5.50%, 10/1/11 Aa/A 600,000 609,292
Dade County, Florida General Obligation Refunding Bonds,
FGIC Insured, 12%, 10/1/04 Aaa/AAA/AAA 100,000 161,729
Daytona Beach, Florida Water and Sewer Revenue Bonds,
AMBAC Insured, 5.50%, 11/15/17 Aaa/AAA 100,000 101,394
Escambia County, Florida Utilities Authority Utility System
Capital Appreciation Revenue Bonds, Series B,
FGIC Insured, 0%, 1/1/15 Aaa/AAA/AAA 215,000 68,802
Florida State Board of Education Capital Outlay Public
Education General Obligation:
Bonds, Series A, 6.75%, 6/1/21 Aa/AA 300,000 337,639
Bonds, Series D, 5.20%, 6/1/19 Aa/AA/AA 130,000 129,449
Refunding Bonds, Series D, 5.125%, 6/1/22 Aa/AA/AA 300,000 292,963
Florida State Municipal Power Agency Revenue Refunding
Bonds, St. Lucie Project, FGIC Insured, 5.25%, 10/1/21 Aaa/AAA/AAA 300,000 295,662
Florida State Turnpike Authority Revenue Bonds,
Series A, FGIC Insured, Prerefunded, 6.35%, 7/1/22 Aaa/AAA/AAA 600,000 684,140
Gainesville, Florida Utilities System Revenue Bonds,
Series B, 5.50%, 10/1/13 Aa/AA 350,000 356,340
Greater Orlando Aviation Authority Revenue Refunding
Bonds, Orlando, Florida Airport Facilities, Series A,
AMBAC Insured, 5.50%, 10/1/18 Aaa/AAA/A+ 375,000 380,053
Halifax Hospital Medical Center Florida Hospital Revenue
Refunding Bonds, MBIA Insured, 5.25%, 10/1/15 Aaa/AAA 50,000 49,168
Hillsborough County, Florida Aviation Authority Revenue
Refunding Bonds, Tampa International Airport, Series B,
FGIC Insured, 5.50%, 10/1/13 Aaa/AAA/AAA 150,000 151,930
Hillsborough County, Florida Utility Revenue Refunding
Bonds, MBIA Insured, 5.50%, 8/1/16 Aaa/AAA 200,000 203,523
Hollywood, Florida Water and Sewer Revenue Refunding
Bonds, FGIC Insured, 5.60%, 10/1/23 Aaa/AAA/AAA 335,000 338,997
Jacksonville, Florida Electric Authority Revenue Bonds,
Electric Systems Project, Series Three-B, 5.25%, 10/1/19 Aa1/AA/AA+ 300,000 298,297
Kissimmee, Florida Utility Authority Electric System
Improvement Revenue Refunding Bonds, FGIC Insured:
5.50%, 10/1/15 Aaa/AAA/AAA 200,000 203,798
5.25%, 10/1/18 Aaa/AAA/AAA 50,000 49,653
Lake County, Florida Resource Recovery Industrial
Development Revenue Bonds, Series 1993A,
5.95%, 10/1/13 Baa/BBB+ 100,000 100,830
Orange County, Florida Sales Tax Revenue Bonds:
Series B, FGIC Insured, 5.375%, 1/1/24 Aaa/AAA/AAA 350,000 349,482
Series B, 5.375%, 1/1/24 A1/A+ 350,000 348,945
Orlando, Florida Utilities Commission Water and Electric Sub.:
Revenue Bonds, Series B, 5.25%, 10/1/23 Aa/AA-/AA 305,000 300,012
Revenue Refunding Bonds, Series A, 5.25%, 10/1/23 Aa/AA-/AA 70,000 68,855
Orlando and Orange County Expressway Authority Revenue
Refunding Bonds, Florida Expressway Project, Sr. Lien:
AMBAC Insured, 5.25%, 7/1/14 Aaa/AAA/A- 100,000 100,429
FGIC Insured, 5.50%, 7/1/18 Aaa/AAA/AAA 200,000 202,724
Palm Beach County, Florida Revenue Refunding Bonds,
Criminal Justice Facilities, FGIC Insured, 5.375%, 6/1/11 Aaa/AAA/AAA 250,000 254,819
Pinellas County, Florida Health Facilities Authority Hospital
Revenue Bonds, Bayfront Obligation Group, Series A,
MBIA Insured, 5.60%, 7/1/23 Aaa/AAA 500,000 507,628
Port Orange, Florida Water and Sewer Revenue Refunding
Bonds, Jr. Lien, AMBAC Insured, 5.25%, 10/1/21 Aaa/AAA 100,000 98,554
Sarasota County, Florida Utility System Revenue Refunding
Bonds, FGIC Insured, 5.50%, 10/1/22 Aaa/AAA/AAA 150,000 151,808
South Florida Water Management District Revenue
Refunding Bonds, Special Obligation Land Acquisition,
AMBAC Insured, 5.25%, 10/1/15 Aaa/AAA 435,000 432,730
St. Petersburg, Florida Public Utility Revenue Bonds,
5.60%,10/1/18 Aa/AA- 200,000 204,477
Vero Beach, Florida Electric Revenue Refunding Bonds,
Series A, MBIA Insured, 5.375%, 12/1/21 Aaa/AAA 500,000 499,257
West Palm Beach, Florida Utility System Revenue Bonds,
Series B, FGIC Insured, 5.40%, 10/1/23 Aaa/AAA/AAA 600,000 600,000
9,279,420
4 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
Ratings:
Moody's/S&P's/Fitch's Face Market Value
(Unaudited) Amount (See Note 1)
U.S. Possessions-13.2%
Puerto Rico Commonwealth Highway & Transportation
Authority Highway Revenue Refunding Bonds, Series X,
5.25%, 7/1/21 Baa/A 700,000 682,113
Puerto Rico Public Buildings Authority Guaranteed:
Revenue Bonds, Series K, Prerefunded, 6.875%, 7/1/21 Baa/AAA 500,000 594,331
Revenue Refunding Bonds, Education and Health Facilities,
Series M, 5.50%, 7/1/21 Baa/A 300,000 302,290
1,578,734
Total Municipal Bonds and Notes (Cost $10,728,055) 10,858,154
Short-Term Tax-Exempt Obligations-8.4%
Broward County, Florida Multifamily Housing Finance
Authority Revenue Bonds, Landings Inverrary
Apartments, 3.20% (1) (Cost $1,000,000) 1,000,000 1,000,000
Total Investments, at Value (Cost $11,728,055) 99.3% 11,858,154
Other Assets Net of Liabilities .7 78,091
Net Assets 100.0% $11,936,245
<FN>
1. Floating or variable rate obligation maturing in more than one year. The
interest rate, which is based on specific, or an index of, market interest
rates, is subject to change periodically and is the effective rate on
December 31, 1993. A demand feature allows the recovery of principal at any
time, or at specified intervals not exceeding one year, on up to 30 days' notice.
</TABLE>
See accompanying Notes to Financial Statements.
5 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
Statement of Assets and Liabilities December 31, 1993
<TABLE>
<S> <S> <C>
Assets Investments, at value (cost $11,728,055) - see accompanying statement $11,858,154
Cash 230,482
Receivables:
Shares of beneficial interest sold 861,608
Interest 176,267
Deferred organization costs 20,000
Other 7,290
Total assets 13,153,801
Liabilities Payables and other liabilities:
Investments purchased 1,163,600
Dividends 27,222
Distribution assistance - Note 4 1,757
Other 24,977
Total liabilities 1,217,556
Net Assets $11,936,245
Composition of Paid-in capital $11,806,146
Net Assets Net unrealized appreciation on investments - Note 3 130,099
Net Assets $11,936,245
Net Asset Value Class A Shares:
Per Share Net asset value and redemption price per share (based on net
assets of $7,062,406 and 599,006 shares of beneficial
interest outstanding) $11.79
Maximum offering price per share (net asset value plus sales
charge of 4.75% of offering price) $12.38
Class B Shares:
Net asset value, redemption price and offering price per
share (based on net assets of $4,873,839 and 412,801 shares
of beneficial interest outstanding) $11.81
</TABLE>
See accompanying Notes to Financial Statements.
6 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
Statement of Operations For the Period from October 7, 1993
(commencement of operations) to December 31, 1993
<TABLE>
<S> <S> <C>
Investment Income Interest $ 52,024
Expenses Management fees - Note 4 7,028
Distribution assistance:
Class A - Note 4 906
Class B - Note 4 5,109
Registration and filing fees:
Class A 1,930
Class B 1,586
Legal and auditing fees 3,100
Total expenses 19,659
Less assumption of expenses by Oppenheimer Management
Corporation - Note 4 (19,305)
Net expenses 354
Net Investment Income 51,670
Unrealized Gain Net change in unrealized appreciation on investments 130,099
on Investments
Net Increase in Net Assets Resulting from Operations $181,769
</TABLE>
See accompanying Notes to Financial Statements.
7 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Period Ended
December 31,
1993(1)
<S> <S> <C>
Operations Net investment income $ 51,670
Net change in unrealized appreciation or
depreciation on investments 130,099
Net increase in net assets resulting from operations 181,769
Dividends Dividends from net investment income:
to Shareholders Class A ($.141 per share) (28,959)
Class B ($.115 per share) (22,711)
Beneficial Interest Net increase in net assets resulting from Class A
Transactions beneficial interest transactions - Note 2 6,995,516
Net increase in net assets resulting from Class B
beneficial interest transactions - Note 2 4,810,630
Net Assets Total increase 11,936,245
Beginning of period --
End of period $11,936,245
<FN>
1. For the period from October 7, 1993 (commencement of
operations) to December 31, 1993.
</TABLE>
See accompanying Notes to Financial Statements.
8 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Class A Class B
Period Ended Period Ended
December 31, December 31,
1993(1) 1993(1)
<S> <C> <C>
Per Share Operating Data:
Net asset value, beginning of period $11.43 $11.43
Income from investment operations:
Net investment income .14 .12
Net realized and unrealized gain
on investments .36 .38
Total income from investment operations .50 .50
Dividends from net investment income (.14) (.12)
Net asset value, end of period $11.79 $11.81
Total Return, at Net Asset Value(2) 4.39% 4.35%
Ratios/Supplemental Data:
Net assets, end of period (in thousands) $7,062 $4,874
Average net assets (in thousands) $2,471 $2,304
Number of shares outstanding at end of period
(in thousands) 599 413
Ratios to average net assets:
Net investment income 5.08%(3) 4.29%(3)
Expenses, before voluntary assumption by the
Manager 1.50%(3) 2.10%(3)
Expenses, net of voluntary assumption by the
Manager (.29)%(3) .38%(3)
Portfolio turnover rate(4) 0.0% 0.0%
<FN>
1. For the period from October 7, 1993 (commencement of operations) to December 31, 1993.
2. Assumes a hypothetical initial investment on the business day before the first day of the fiscal period, with all dividends and
distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the
last business day of the fiscal period. Sales charges are not reflected in the total returns.
3. Annualized.
4. The lesser of purchases or sales of portfolio securities for a period, divided by the monthly average of the market value of
portfolio securities owned during the period. Securities with a maturity or expiration date at the time of acquisition of one
year or less are excluded from the calculation. Purchases of investment securities (excluding short-term securities) for the
period ended December 31, 1993 were $10,727,093.
</TABLE>
See accompanying Notes to Financial Statements.
9 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
Notes to Financial Statements
1. Significant Accounting Policies
Oppenheimer Florida Tax-Exempt Fund (the Fund) is a separate series of
Oppenheimer Multi-State Tax-Exempt Trust, a non-diversified, open-end
management investment company registered under the Investment Company Act of
1940, as amended. The Fund's investment adviser is Oppenheimer Management
Corporation (the Manager). The Fund offers both Class A and Class B shares.
Class A shares are sold with a front-end sales charge. Class B shares may
be subject to a contingent deferred sales charge. Both classes of shares
have identical rights to earnings, assets and voting privileges, except that
each class has its own distribution plan, expenses directly attributable to
a particular class and exclusive voting rights with respect to matters
affecting a single class. Class B shares will automatically convert to
Class A shares six years after the date of purchase. The following is a
summary of significant accounting policies consistently followed by the
Fund.
Investment Valuation. Portfolio securities are valued at 4:00 p.m. (New
York time) on each trading day. Long-term debt securities are valued by a
portfolio pricing service approved by the Board of Trustees. Long-term debt
securities which cannot be valued by the approved portfolio pricing service
are valued by averaging the mean between the bid and asked prices obtained
from two active market makers in such securities. Short-term debt
securities having a remaining maturity of 60 days or less are valued at cost
(or last determined market value) adjusted for amortization to maturity of
any premium or discount. Securities for which market quotes are not readily
available are valued under procedures established by the Board of Trustees
to determine fair value in good faith.
Allocation of Income, Expenses and Gains and Losses. Income, expenses
(other than those attributable to a specific class) and gains and losses are
allocated daily to each class of shares based upon the relative proportion
of net assets represented by such class. Operating expenses directly
attributable to a specific class are charged against the operations of that
class.
Federal Income Taxes. The Fund intends to continue to comply with
provisions of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income, including any net
realized gain on investments not offset by loss carryovers, to shareholders.
Therefore, no federal income tax provision is required.
Trustees' Fees and Expenses. The Fund has adopted a nonfunded retirement
plan for the Fund's independent trustees. Benefits are based on years of
service and fees paid to each trustee during the years of service. No
payments have been made under the plan.
Organization Costs. The Manager advanced $20,000 for organization and
start-up costs of the Fund. Such expenses are being amortized over a
five-year period from the date operations commenced. In the event that all
or part of the Manager's initial investment in shares of the Fund is
withdrawn during the amortization period, the redemption proceeds will be
reduced to reimburse the Fund for any unamortized expenses, in the same
ratio as the number of shares redeemed bears to the number of initial shares
outstanding at the time of such redemption.
Distributions to Shareholders. The Fund intends to declare dividends
separately for Class A and Class B shares from net investment income each
regular business day and pay such dividends monthly. Distributions from net
realized gains on investments, if any, will be declared at least once each
year.
10 Oppenheimer Florida Tax-Exempt Fund<PAGE>
Notes to Financial Statements (Continued)
Other. Investment transactions are accounted for on the date the
investments are purchased or sold (trade date). Discount on securities
purchased is amortized over the life of the respective securities, in
accordance with federal income tax requirements. Realized gains and losses
on investments and unrealized appreciation and depreciation are determined
on an identified cost basis, which is the same basis used for federal income
tax purposes.
2. Shares of Beneficial Interest
The Fund has authorized an unlimited number of no par value shares of
beneficial interest of each class. Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
Period Ended December 31, 1993(1)
Shares Amount
<S> <C> <C>
Class A:
Sold 661,945 $7,730,754
Dividends reinvested 456 5,352
Redeemed (63,395) (740,590)
Net increase 599,006 $6,995,516
Class B: Sold 420,202 $4,895,857
Dividends reinvested 376 4,414
Redeemed (7,777) (89,641)
Net increase 412,801 $4,810,630
<FN>
1. For the period from October 7, 1993 (commencement of operations) to
December 31, 1993.
</TABLE>
3. Unrealized Gains and Losses on Investments
At December 31, 1993, net unrealized appreciation of investments of $130,099
was composed of gross appreciation of $132,122, and gross depreciation of
$2,023.
4. Management Fees and Other Transactions with Affiliates
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for an annual fee of .60% on
the first $200 million of net assets, .55% on the next $100 million, .50% on
the next $200 million, .45% on the next $250 million, .40% on the next $250
million and .35% on net assets in excess of $1 billion. The Manager has
agreed to assume Fund expenses (with specified exceptions) in excess of the
most stringent applicable regulatory limit on Fund expenses. In addition,
the Manager has voluntarily undertaken to assume Fund expenses to the level
needed to maintain a stable dividend.
For the period ended December 31, 1993, commissions (sales charges paid by
investors) on sales of Class A shares totaled $159,560, of which $43 was
retained by Oppenheimer Funds Distributor, Inc. (OFDI), a subsidiary of the
Manager, as general distributor. During the period ended December 31, 1993,
OFDI received contingent deferred sales charges of $2,411 upon redemption of
Class B shares.
Oppenheimer Shareholder Services (OSS), a division of the Manager, is the
transfer and shareholder servicing agent for the Fund, and for other
registered investment companies. OSS's total costs of providing such
services are allocated ratably to these companies.
11 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
Notes to Financial Statements (Continued)
Under separate approved plans of distribution, each class may expend up to
.25% (voluntarily reduced to .15% by the Fund's Board) of its net assets
annually to reimburse OFDI for costs incurred in distributing shares of the
Fund, including amounts paid to brokers, dealers, banks and other
institutions. In addition, Class B shares are subject to an asset-based
sales charge of .75% of net assets annually, to reimburse OFDI for sales
commissions paid from its own resources at the time of sale and associated
financing costs. In the event of termination or discontinuance of the Class
B plan of distribution, the Fund would be contractually obligated to pay
OFDI for any expenses not previously reimbursed or recovered through
contingent deferred sales charges. During the period ended December 31,
1993, OFDI retained $5,109 as reimbursement for Class B distribution-related
expenses and sales commissions.
12 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
Independent Auditors' Report
The Board of Trustees and Shareholders of Oppenheimer Florida Tax-Exempt Fund:
We have audited the accompanying statements of investments and assets and
liabilities of Oppenheimer Florida Tax-Exempt Fund as of December 31, 1993,
and the related statements of operations, changes in net assets and the
financial highlights for the period October 7, 1993 (commencement of
operations) to December 31, 1993. These financial statements and financial
highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements and financial highlights. Our procedures
included confirmation of securities owned as of December 31, 1993, by
correspondence with the custodian and brokers; and where confirmations were
not received from brokers, we performed other auditing procedures. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Oppenheimer Florida Tax-Exempt Fund as of December 31, 1993, the results of
its operations, the changes in its net assets and the financial highlights
for the period from October 7, 1993 (commencement of operations) to December
31, 1993, in conformity with generally accepted accounting principles.
KPMG Peat Marwick
Denver, Colorado January 21, 1994
13 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
Federal Income Tax Information (Unaudited)
In early 1994, shareholders will receive information regarding all dividends
paid to them by the Fund during calendar year 1993. Regulations of the U.S.
Treasury Department require the Fund to report this information to the
Internal Revenue Service.
None of the dividends paid by the Fund during the fiscal period ended
December 31, 1993 are eligible for the corporate dividend-received
deduction. The dividends were derived from interest on municipal bonds and
are not subject to federal income tax. To the extent a shareholder is
subject to any state or local tax laws, some or all of the dividends
received may be taxable.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service.
Because of the complexity of the federal regulations which may affect your
individual tax return and the many variations in state and local tax
regulations, we recommend that you consult your tax adviser for specific
guidance.
14 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
Oppenheimer Florida Tax-Exempt Fund
A Series of Oppenheimer Multi-State Tax-Exempt Trust
Officers and Trustees Leon Levy, Chairman of the Board of Trustees
Leo Cherne, Trustee
Edmund T. Delaney, Trustee
Robert G. Galli, Trustee
Benjamin Lipstein, Trustee
Elizabeth B. Moynihan, Trustee
Kenneth A. Randall, Trustee
Edward V. Regan, Trustee
Russell S. Reynolds, Jr., Trustee
Sidney M. Robbins, Trustee
Donald W. Spiro, Trustee and President
Pauline Trigere, Trustee
Clayton K. Yeutter, Trustee
Robert E. Patterson, Vice President
George C. Bowen, Treasurer
Lynn M. Coluccy, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
Investment Advisor Oppenheimer Management Corporation
Distributor Oppenheimer Funds Distributor, Inc.
Transfer and Oppenheimer Shareholder Services
Shareholder Servicing
Agent
Custodian of Citibank, N.A.
Portfolio Securities
Independent Auditors KPMG Peat Marwick
Legal Counsel Gordon Altman Butowsky Weitzen Shalov & Wein
This is a copy of a report to shareholders of Oppenheimer Florida Tax-Exempt
Fund. This report must be preceded or accompanied by a Prospectus of
Oppenheimer Florida Tax-Exempt Fund. For material information concerning
the Fund, see the Prospectus.
15 Oppenheimer Florida Tax-Exempt Fund
