OPPENHEIMER NEW JERSEY TAX-EXEMPT FUND
Supplement dated May 20, 1994
to the Statement of Additional Information dated March 1, 1994
The Statement of Additional Information is hereby amended as
follows:
1. The penultimate paragraph of "Investment Objective and
Policies - Special Investment Considerations - New Jersey
Municipal Securities" is amended to read in its entirety as
follows:
On November 2, 1993, Christine Todd Whitman was elected
to replace James Florio as Governor of the State.
Governor Whitman took office on January 18, 1994. On
Tuesday, March 8, 1994, Governor Whitman signed into law
a bill designed to reduce New Jersey State income taxes
for both individuals and corporations. The new law
consists of three provisions, all of which are
retroactive to January 1, 1994: (i) a 5% reduction in the
current income tax rates for all New Jersey individual
taxpayers; (ii) the elimination of all New Jersey State
income tax liability for individuals on the first $7,500
of income; and (iii) the repeal of the .375% business tax
surcharge currently assessed against all corporations
doing business in New Jersey.
2. The Tax-Equivalent Yield Tables set forth on Appendix B to
the Statement of Additional Information are amended to read in
their entirety as follows:
The equivalent yield tables below compare tax-free income
with taxable income under Federal individual income tax
rates and New Jersey state income tax rates, in each case,
effective as of January 1, 1994. Combined taxable income
refers to the net amount subject to Federal and New Jersey
income taxes after deductions and exemptions. The tables
assume that an investor's highest tax bracket applies to
the change in taxable income resulting from a switch
between taxable and non-taxable investments, that the
investor is not subject to the Alternative Minimum Tax and
that state income tax payments are fully deductible for
Federal income tax purposes. They do not reflect the
phaseout of itemized deductions and personal exemptions at
higher income levels, resulting in higher effective tax
rates and tax equivalent yields.
<PAGE>
<TABLE>
<CAPTION>
Combined Taxable Income
- ------------------------------------ An Oppenheimer New Jersey
Effective Tax Bracket Tax-Exempt Fund Yield
Single Return ------------------------------ of:
- -------------------- Combined 3.0% 3.5% 4.0% 4.5%
Effective Is Approximately
Not Tax Equivalent to a Taxable
Over Over Fed./N.J. Bracket Yield of:
- ------------ ------------- ----------------- ------------- -----------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 20,000 $ 22,750 15%/2.38% 17.02% 3.62% 4.22% 4.82% 5.42%
$ 22,750 $ 35,000 28%/2.38% 29.71% 4.27% 4.98% 5.69% 6.40%
$ 35,000 $ 40,000 28%/4.75% 31.42% 4.37% 5.10% 5.83% 6.56%
$ 40,000 $ 55,100 28%/6.18% 32.45% 4.44% 5.18% 5.92% 6.66%
$ 55,100 $ 75,000 31%/6.18% 35.26% 4.63% 5.41% 6.18% 6.95%
$ 75,000 $115,000 31%/6.65% 35.59% 4.66% 5.43% 6.21% 6.99%
$115,000 $250,000 36%/6.65% 40.26% 5.02% 5.86% 6.70% 7.53%
$250,000 39.6%/6.65% 43.62% 5.32% 6.21% 7.09% 7.98%
<CAPTION>
Combined Taxable Income
- ----------------------------------- An Oppenheimer New Jersey
Effective Tax Bracket Tax-Exempt Fund Yield
Single Return ------------------------------ of:
- ------------------ Combined 5.0% 5.5% 6.0% 6.5%
Effective Is Approximately
Not Tax Equivalent to a Taxable
Over Over Fed./N.J. Bracket Yield of:
- ---------- ----------- ---------------- ------------- ------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 20,000 $ 22,750 15%/2.38% 17.02% 6.03% 6.63% 7.23% 7.83%
$ 22,750 $ 35,000 28%/2.38% 29.71% 7.11% 7.82% 8.54% 9.25%
$ 35,000 $ 40,000 28%/4.75% 31.42% 7.29% 8.02% 8.75% 9.48%
$ 40,000 $ 55,100 28%/6.18% 32.45% 7.40% 8.14% 8.88% 9.62%
$ 55,100 $ 75,000 31%/6.18% 35.26% 7.72% 8.50% 9.27% 10.04%
$ 75,000 $115,000 31%/6.65% 35.59% 7.76% 8.54% 9.32% 10.09%
$115,000 $250,000 36%/6.65% 40.26% 8.37% 9.21% 10.04% 10.88%
$250,000 39.6%/6.65% 43.62% 8.87% 9.75% 10.64% 11.53%
<CAPTION>
Combined Taxable Income
- --------------------------------- An Oppenheimer New Jersey
Effective Tax Bracket Tax-Exempt Fund Yield
Joint Return ------------------------------- of:
- --------------------- Combined 3.0% 3.5% 4.0% 4.5%
Effective Is Approximately
Not Tax Equivalent to a Taxable
Over Over Fed./N.J. Bracket Yield of:
- ---------- ---------- ----------------- -------------- -----------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 20,000 $ 38,000 15%/2.38% 17.02% 3.62% 4.22% 4.82% 5.42%
$ 38,000 $ 50,000 28%/2.38% 29.71% 4.27% 4.98% 5.69% 6.40%
$ 50,000 $ 70,000 28%/3.33% 30.39% 4.31% 5.03% 5.75% 6.46%
$ 70,000 $ 80,000 28%/4.75% 31.42% 4.37% 5.10% 5.83% 6.56%
$ 80,000 $ 91,850 28%/6.18% 32.45% 4.44% 5.18% 5.92% 6.66%
$ 91,850 $140,000 31%/6.18% 35.26% 4.63% 5.41% 6.18% 6.95%
$140,000 $150,000 36%/6.18% 39.95% 5.00% 5.83% 6.66% 7.49%
$150,000 $250,000 36%/6.65% 40.26% 5.02% 5.86% 6.70% 7.53%
$250,000 39.6%/6.65% 43.62% 5.32% 6.21% 7.09% 7.98%
<CAPTION>
Combined Taxable Income
- ------------------------------------- An Oppenheimer New Jersey
Effective Tax Bracket Tax-Exempt Fund Yield
Joint Return ----------------------------- of:
- ---------------------- Combined 5.0% 5.5% 6.0% 6.5%
Effective Is Approximately
Not Tax Equivalent to a Taxable
Over Over Fed./N.J. Bracket Yield of:
- ----------- ------------ --------------- ------------- -----------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 20,000 $ 38,000 15%/2.38% 17.02% 6.03% 6.63% 7.23% 7.83%
$ 38,000 $ 50,000 28%/2.38% 29.71% 7.11% 7.82% 8.54% 9.25%
$ 50,000 $ 70,000 28%/3.33% 30.39% 7.18% 7.90% 8.62% 9.34%
$ 70,000 $ 80,000 28%/4.75% 31.42% 7.29% 8.02% 8.75% 9.48%
$ 80,000 $ 91,850 28%/6.18% 32.45% 7.40% 8.14% 8.88% 9.62%
$ 91,850 $140,000 31%/6.18% 35.26% 7.72% 8.50% 9.27% 10.04%
$140,000 $150,000 36%/6.18% 39.95% 8.33% 9.16% 9.99% 10.82%
$150,000 $250,000 36%/6.65% 40.26% 8.37% 9.21% 10.04% 10.88%
$250,000 39.6%/6.65% 43.62% 8.87% 9.75% 10.64% 11.53%
</TABLE>
May 20, 1994
