<PAGE>
OPPENHEIMER FLORIDA TAX-EXEMPT FUND
Annual Report December 31, 1995
/LOGO/OPPENHEIMERFUNDS/r/
<PAGE>
This Fund is for people who need INCOME that's EXEMPT from taxes.
YIELD
STANDARDIZED YIELD
For the 30 Days Ended 12/31/95:(4)
Class A
4.25%
Class B
3.77%
Class C
3.75%
HOW YOUR FUND IS MANAGED
Oppenheimer Florida Tax-Exempt Fund invests in a diversified portfolio of
Florida municipal bonds. As a Fund shareholder, you receive income that is free
from federal taxes and the benefit of owning an investment whose shares are
exempt from Florida intangible personal property taxes.(1) Your dividends don't
increase your taxable income the way taxable investments do, so you can keep
more of what you earn.
Florida Tax-Exempt Fund is managed by an experienced team of municipal bond
specialists who research investments throughly before they are included in the
Fund's portfolio.
PERFORMANCE
Total return at net asset value for the 12 months ended 12/31/95 was 17.60% for
Class A shares and 16.81% for Class B shares.(2)
Your Fund's average annual total returns at maximum offering price for Class A
shares for the 1-year period ended 12/31/95 and since inception of the Class on
10/1/93 were 12.01% and 3.47%, respectively. For Class B shares, average annual
total returns for the 1-year period ended 12/31/95 and since inception of the
Class on 10/1/93 were 11.81% and 3.74%, respectively.(3)
OUTLOOK
"Our outlook remains positive. We believe that with favorable economic
fundamentals such as moderate growth and low inflation, the coming year should
be a good environment for municipal bonds."
Robert Patterson, Portfolio Manager
December 31, 1995
Total returns include change in share price and reinvestment of dividends and
capital gains distributions. Past performance does not guarantee future results.
Investment return and principal value of an investment in the Fund will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than the original cost. For more complete information, please review the
prospectus carefully before you invest.
1. A portion of the distributions paid by the Fund may be subject to federal and
state income taxes. For investors subject to federal and/or state alternative
minimum tax (AMT), the Fund's distributions may increase this tax. Capital gains
distributions, if any, are taxed as capital gains.
2. Based on the change in net asset value per share for the period shown, with-
out deducting any sales charges. Such performance would have been lower if sales
charges were taken into account.
3. Class A returns show results of hypothetical investments on 12/31/94 and
10/1/93 (inception of class), after deducting the current maximum initial sales
charge of 4.75%. Class B returns show results of hypothetical investments on
12/31/94 and 10/1/93 (inception of class), and the deduction of the applicable
contingent deferred sales charge of 5% (1-year) and 3% (since inception). Class
C cumulative total return since inception (8/29/95) was 4.86%. An explanation of
the different performance calculations is in the Fund's prospectus.
4. Standardized yield is net investment income calculated on a yield-to-maturity
basis for the 30-day period ended 12/31/95, divided by the maximum offering
price at the end of the period, compounded semiannually and then annualized.
Falling net asset values will tend to artificially raise yields.
2 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
JAMES C. SWAIN
Chairman
Oppenheimer Florida Tax-Exempt Fund
BRIDGET A. MACASKILL
President
Oppenheimer Florida Tax-Exempt Fund
DEAR OPPENHEIMERFUNDS SHAREHOLDER,
This has been a year in which performance has been strong for municipal bonds
because potential obstacles became great opportunities for municipal bonds
investors.
Like most fixed-income securities, municipal bonds have enjoyed the benefits of
declining long-term interest rates in 1995. When interest rates fall,
outstanding municipal bonds generally appreciate in value. But what
distinguished municipal bonds in 1995 was the relationship between their yields
and taxable U.S. government bonds. Normally, a municipal bond yields about 80%
of its taxable counterpart. For example, if a 30-year Treasury yields 6%, then a
long-term municipal bond could be expected to yield about 4.80%. In 1995, that
same municipal bond would yield as much as 5.50%.
For taxpayers in the 36% income bracket, a 5.50% tax-free yield is the
equivalent of receiving more than 8.5% on a taxable investment. At the same
time, inflation is less than 3%. Indeed, municipal bonds are producing some of
the best real, inflation-adjusted tax-free yields for some time.
The reason for this opportunity is a potential obstacle to the municipal bond
marketplace. There are several proposals in Congress for a "flat" tax, which
would diminish the current advantage of municipal bonds because ordinary income
would be taxed at a lower rate. While we can't be certain where these proposals
will lead, we believe that the odds of significant tax reform adversely
affecting municipal bonds in the near future are quite low. Indeed, the recent
battles over the federal budget deficit suggest that passing sweeping tax
legislation impacting so many different parties is a difficult proposition. In
any case, the matter will almost certainly not be resolved until well after the
November presidential election.
The other potential concern in the municipal bond market was the bankruptcy of
Orange County, California. Except for a few weeks early in 1995, most of the
municipal bond market shrugged off these developments as an isolated incident.
Nevertheless, Orange County had a positive side for municipal bond investors:
there was a demand for additional financial disclosure by professional
investors, and a tightening of credit requirements by the major rating agencies.
The Orange County episode is a good reminder of the importance of
diversification.
With a stable economy, falling long-term interest rates, low inflation, and the
high ratio of tax-free municipal bond yields to taxable U.S. government
securities, we believe that municipal bonds continue to offer an attractive
package to income-oriented investors. And a municipal bond fund offers the
additional advantage of diversification, a goal that is difficult for most
individual investors to accomplish by buying individual securities.
Your portfolio manager discusses the outlook for your Fund in light of these
broad issues on the following pages. Thank you for your confidence in
OppenheimerFunds, and we look forward to helping you reach your investment goals
in the future.
/s/JAMES C. SWAIN
James C. Swain
/s/BRIDGET A. MACASKILL
Bridget A. Macaskill
January 22, 1996
3 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
Q + A
ROBERT PATTERSON
Portfolio Manager
AN INTERVIEW WITH YOUR FUND'S MANAGER.
HOW HAS THE FUND PERFORMED?
1995 was a great year for municipal bonds, which has translated into a great
year for the Fund. We were able to capture appreciation as the market rallied,
as well as to continue to pay tax-exempt income at a competitive rate.
WHAT FACTORS WERE POSITIVE CONTRIBUTORS?
One of the ways we benefited was through the favorable supply and demand
relationship that characterized the period. While demand remained relatively
high--both from investors seeking tax-free income and those who were simply
interested in potential price appreciation--there were less new municipal bond
offerings brought to market in 1995. This relationship supported prices over the
past six months and should continue to work in favor of bondholders going
forward.
WERE THERE ANY FACTORS THAT LIMITED PERFORMANCE?
Throughout the year, the overriding theme has been the possibility of tax
reform. Tax reform, if it were dramatic, would have the potential to limit
municipal bonds' tax advantages. The fact that it's being discussed in
Washington has limited the rally of bond prices. And longer-term bonds have felt
pricing pressures more because they would be affected more by any such changes.
We continue to believe that any reforms that may pass in the near term will be
limited in scope, so we've viewed this period of nervousness as a buying
opportunity.
WHAT AREAS OF THE MARKET ARE YOU CURRENTLY TARGETING?
In response to tax reform talks, we've focused on buying both bonds with shorter
maturities and prerefunded bonds. Because of the time it would take to change
the tax laws, both of these sectors have been less vulnerable to price
pressures. We've also been buying bonds with maturities of 15-20 years. This
area of the market already reflects the negative impact of tax reform fears to
the point where we think they are selling at compelling values. Due to the
current yield curve, these bonds are paying nearly as much income as longer
bonds, but with less susceptibility to price pressures.(1)
Beyond our strategy for managing tax reform, as bonds rallied over the year,
we've been selling par bonds, or bonds that we bought at a discount, that have
realized their potential. And we're continuing to emphasize call protection, a
feature that limits an issuer's ability to pay off a bond before its maturity
date, to help us maintain our income.
WHAT IS YOUR OUTLOOK FOR THE FUND?
Our outlook remains positive. We believe that with favorable economic
fundamentals such as moderate growth and low inflation, the coming year should
be a good environment for municipal bonds. With the market having moved
dramatically over the year, however, we expect that the coming year will be a
more typical period for municipal bond investors--where bonds will continue
to perform well, but where the majority of returns will come from income.//
1. The Fund's portfolio is subject to change.
4 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS December 31, 1995
RATINGS: MOODY'S/
S&P'S/FITCH'S FACE MARKET VALUE
(UNAUDITED) AMOUNT SEE NOTE 1
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES - 96.9%
- -------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 81.0%
-----------------------------------------------------------------------------------------------------------------------
Alachua County, Florida Health Facilities Authority Health
Facilities Revenue Refunding Bonds, Santa Fe Healthcare
Facilities Project, 6%, 11/15/09 Baa1/BBB+ $1,000,000 $1,005,786
-----------------------------------------------------------------------------------------------------------------------
Brevard County, Florida Housing Finance Authority Single
Family Mtg. Revenue Bonds, 6.70%, 9/1/27 Aaa/NR 1,000,000 1,041,669
-----------------------------------------------------------------------------------------------------------------------
Broward County, Florida Resource Recovery Revenue Bonds,
Broward Waste Energy-LP North Project, 7.95%, 12/1/08 A/A 1,175,000 1,333,280
-----------------------------------------------------------------------------------------------------------------------
Broward County, Florida Resource Recovery Revenue
Bonds, Ses Broward Co.-LP South Project, 7.95%, 12/1/08 A/A- 400,000 453,882
-----------------------------------------------------------------------------------------------------------------------
Broward County, Florida School District General Obligation
Bonds, Prerefunded, 7.125%, 2/15/08 Aaa/AAA 500,000 552,835
-----------------------------------------------------------------------------------------------------------------------
Clay County, Florida Housing Finance Authority Revenue
Bonds, Single Family Mtg., 6.55%, 3/1/28 Aaa/NR 1,100,000 1,142,266
-----------------------------------------------------------------------------------------------------------------------
Collier County, Florida Health Facilities Authority Health
Facility Revenue Refunding Bonds, The Moorings, Inc.
Project, 7%, 12/1/19 NR/BBB+/A- 1,000,000 1,066,821
-----------------------------------------------------------------------------------------------------------------------
Dade County, Florida General Obligation Refunding
Bonds, FGIC Insured, 12%, 10/1/04 Aaa/AAA/AAA 100,000 153,105
-----------------------------------------------------------------------------------------------------------------------
Dade County, Florida Industrial Development Authority
Revenue Bonds, Miami Cerebral Palsy Services Project,
8%, 6/1/22 NR/NR 1,000,000 1,059,288
-----------------------------------------------------------------------------------------------------------------------
Florida Housing Finance Agency Revenue Bonds,
Maitland Club Apts. Project, Series B-1, AMBAC Insured,
6.75%, 8/1/14 Aaa/AAA/AAA 1,000,000 1,047,648
-----------------------------------------------------------------------------------------------------------------------
Florida State Board of Education Capital Outlay Public
Education General Obligation Bonds, Prerefunded, Series A,
6.75%, 6/1/21 Aa/AAA 300,000 337,891
-----------------------------------------------------------------------------------------------------------------------
Florida State Board of Education Capital Outlay Public
Education General Obligation Bonds, Prerefunded, Series
A, 7.25%, 6/1/23 Aaa/AAA 2,210,000 2,517,101
-----------------------------------------------------------------------------------------------------------------------
Florida State Board of Education Capital Outlay Public
Education General Obligation Refunding Bonds, Series D,
5.125%, 6/1/22 Aa/AA/AA 700,000 680,226
-----------------------------------------------------------------------------------------------------------------------
Florida State Division of Bond Department General
Services Revenue Bonds, Sunshine Skyway Project,
Prerefunded, 10.25%, 6/1/08 Aaa/AAA 1,000,000 1,106,784
-----------------------------------------------------------------------------------------------------------------------
Florida State Division of Bond Finance General Service
Revenue Bonds, Consolidated & Recreation Lands-
Department of Natural Resources, Prerefunded, Series A,
MBIA Insured, 7.25%, 7/1/06 Aaa/AAA 1,000,000 1,096,374
-----------------------------------------------------------------------------------------------------------------------
Florida State Division of Bond Finance General Service
Revenue Bonds, Department of Natural Resources and
Preservation, Series 2000-A, 5.80%, 7/1/13 Aaa/AAA/A 750,000 785,863
-----------------------------------------------------------------------------------------------------------------------
Florida State Turnpike Authority Revenue Bonds,
Prerefunded, 7.50%, 7/1/19 Aaa/NR/AAA 700,000 789,368
-----------------------------------------------------------------------------------------------------------------------
Hillsborough County, Florida Aviation Authority Revenue
Refunding Bonds, Tampa International Airport, Series B,
FGIC Insured, 5.50%, 10/1/13 Aaa/AAA/AAA 900,000 921,760
</TABLE>
5 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (Continued)
RATINGS: MOODY'S/
S&P'S/FITCH'S FACE MARKET VALUE
(UNAUDITED) AMOUNT SEE NOTE 1
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES (CONTINUED)
- -------------------------------------------------------------------------------------------------------------------------------
FLORIDA (CONTINUED)
-----------------------------------------------------------------------------------------------------------------------
Hillsborough County, Florida Industrial Development
Authority Pollution Control Revenue Refunding Bonds,
Tampa Electric Co. Project, 8%, 5/1/22 Aa3/AA/AA- $1,000,000 $ 1,226,212
-----------------------------------------------------------------------------------------------------------------------
Jacksonville, Florida Electric Authority Revenue Bonds,
Electric Systems Project, Series 3B, 5.25%, 10/1/19 Aa1/AA/AA+ 650,000 651,176
-----------------------------------------------------------------------------------------------------------------------
Martin County Florida Industrial Development Authority
Revenue Refunding Bonds, Indiantown Cogeneration
Project, Series A, 7.875%, 12/15/25 Baa3/BBB-/BBB 1,000,000 1,151,223
-----------------------------------------------------------------------------------------------------------------------
Orange County, Florida Housing Finance Authority Single
Family Mtg. Revenue Bonds, 6.85%, 10/1/27 Aaa/AAA 1,000,000 1,053,556
-----------------------------------------------------------------------------------------------------------------------
Orlando & Orange County, Florida Expressway Authority
Revenue Refunding Bonds, Sr. Lien, FGIC Insured, 5.50%,
7/1/18 Aaa/AAA/AAA 720,000 738,752
-----------------------------------------------------------------------------------------------------------------------
Orlando, Florida Utilities Commission Water & Electric
Revenue Bonds, Prerefunded, Series C, 7%, 10/1/23 Aaa/AA- 600,000 670,471
-----------------------------------------------------------------------------------------------------------------------
Pinellas County, Florida Health Facilities Authority
Hospital Revenue Bonds, Bayfront Obligation Group,
Series A, MBIA Insured, 5.60%, 7/1/23 Aaa/AAA 500,000 507,728
-----------------------------------------------------------------------------------------------------------------------
South Florida Water Management District Revenue
Refunding Bonds, Special Obligation Land Acquisition,
AMBAC Insured, 5.25%, 10/1/15 Aaa/AAA/AAA 720,000 720,819
-----------------------------------------------------------------------------------------------------------------------
St. Petersburg, Florida Public Improvement Revenue
Refunding Bonds, MBIA Insured, 6.375%, 2/1/12 Aaa/AAA 750,000 813,193
-----------------------------------------------------------------------------------------------------------------------
Vero Beach, Florida Electric Revenue Refunding Bonds,
Series A, MBIA Insured, 5.375%, 12/1/21 Aaa/AAA 500,000 503,418
-----------------------------------------------------------------------------------------------------------------------
West Palm Beach, Florida Utility System Revenue Bonds,
Series B, FGIC Insured, 5.40%, 10/1/23 Aaa/AAA/AAA 850,000 856,348
------------
25,984,843
- -------------------------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS - 15.9%
-----------------------------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Aqueduct & Sewer Authority
Revenue Bonds, Escrowed to Maturity, 10.25%, 7/1/09 Aaa/AAA 400,000 567,976
-----------------------------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Highway & Transportation
Authority Revenue Bonds, Prerefunded, Series T, 6.625%,
7/1/18 NR/AAA 500,000 569,684
-----------------------------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Highway & Transportation
Authority Revenue Bonds, Series W, Inverse Floater,
6.32%, 7/1/10(1) Baa1/A 1,000,000 1,002,650
-----------------------------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Highway & Transportation
Authority Revenue Refunding Bonds, Series X, 5.25%,
7/1/21 Baa1/A 700,000 673,370
-----------------------------------------------------------------------------------------------------------------------
Puerto Rico Electric Power Authority Revenue Refunding
Bonds, Series U, 6%, 7/1/14 Baa1/A- 700,000 725,384
-----------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Buildings Authority Guaranteed Public
Education & Health Facilities Revenue Bonds,
Prerefunded, Series L, 6.875%, 7/1/21 Aaa/AAA 600,000 692,044
-----------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Buildings Authority Guaranteed Public
Education & Health Facilities Revenue Refunding Bonds,
Series M, 5.50%, 7/1/21 Baa1/A 300,000 297,965
</TABLE>
6 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (Continued)
RATINGS: MOODY'S/
S&P'S/FITCH'S FACE MARKET VALUE
(UNAUDITED) AMOUNT SEE NOTE 1
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS AND NOTES (CONTINUED)
- -------------------------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS - (CONTINUED)
-----------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Buildings Authority Revenue
Guaranteed Bonds, Prerefunded, Series K, 6.875%, 7/1/21 Aaa/AAA $ 500,000 $ 576,703
------------
5,105,776
------------
Total Municipal Bonds and Notes (Cost $30,133,735) 31,090,619
- -------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM TAX-EXEMPT OBLIGATIONS - 1.6%
- -------------------------------------------------------------------------------------------------------------------------------
Hillsborough County, Florida Industrial Development
Authority Pollution Control Revenue Bonds, Tampa
Electric Co. Project, 4%(2) (Cost $500,000) 500,000 500,000
-----------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $30,633,735) 98.5% 31,590,619
-----------------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 1.5 483,488
------ ------------
NET ASSETS 100.0% $32,074,107
====== ============
</TABLE>
1. Represents the current interest rate for a variable rate bond.
Variable rate bonds known as "inverse floaters" pay interest at a rate
that varies inversely with short-term interest rates. As interest rates
rise, inverse floaters produce less current income. Their price may be
more volatile than the price of a comparable fixed-rate security.
Inverse floaters amount to $1,002,650 or 3.13% of the Fund's net assets
at December 31, 1995. 2. 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, 1995. This instrument may also
have a demand feature which allows the recovery of principal at any
time, or at specified intervals not exceeding one year, on up to 30
days' notice. Maturity date shown represents effective maturity based on
variable rate and, if applicable, demand feature.
As of December 31, 1995, securities subject to the alternative minimum
tax amounted to $5,436,362 or 16.95% of the Fund's net assets.
Distribution of investments by industry, as a percentage of total
investments at value, is as follows:
<TABLE>
<CAPTION>
INDUSTRY MARKET VALUE PERCENT
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Utilities $ 7,633,975 24.1%
Transportation 6,615,561 20.9
General Obligation Bonds 5,807,872 18.4
Housing 4,285,139 13.6
Hospitals 3,639,623 11.5
Special Tax Bonds 1,882,237 6.0
Revenue Bonds 1,226,212 3.9
Pollution Control 500,000 1.6
----------- ------
$31,590,619 100.0%
=========== ======
</TABLE>
See accompanying Notes to Financial Statements.
7 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES December 31, 1995
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS Investments, at value (cost $30,633,735) - see accompanying statement $31,590,619
----------------------------------------------------------------------------------------------------
Cash 156,018
----------------------------------------------------------------------------------------------------
Receivables:
Interest 533,569
Shares of beneficial interest sold 61,336
Deferred organization costs 1,431
----------------------------------------------------------------------------------------------------
Other 6,548
------------
Total assets 32,349,521
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES Payables and other liabilities:
Shares of beneficial interest redeemed 112,784
Dividends 92,715
Trustees' fees 28,903
Legal and auditing fees 11,538
Distribution and service plan fees 10,732
Shareholder reports 4,684
Transfer and shareholder servicing agent fees 441
Other 13,617
-------------
Total liabilities 275,414
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $32,074,107
------------
------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
COMPOSITION OF Paid-in capital $31,683,559
----------------------------------------------------------------------------------------------------
NET ASSETS Overdistributed net investment income (7,891)
----------------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (558,445)
----------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments - Note 3 956,884
------------
Net assets $32,074,107
------------
------------
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE Class A Shares:
PER SHARE Net asset value and redemption price per share (based on
net assets of $19,377,188 and 1,699,707 shares of beneficial interest outstanding) $11.40
Maximum offering price per share (net asset value plus sales charge
of 4.75% of offering price) $11.97
----------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $12,658,081 and 1,108,807 shares of beneficial interest outstanding) $11.42
----------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $38,838 and 3,407 shares of beneficial interest outstanding) $11.40
</TABLE>
See accompanying Notes to Financial Statements.
8 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------
STATEMENT OF OPERATIONS For the Year Ended December 31, 1995
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME Interest $1,574,194
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES Management fees - Note 4 151,497
----------------------------------------------------------------------------------------------------
Distribution and service plan fees - Note 4:
Class A 36,538
Class B 107,478
Class C 13
----------------------------------------------------------------------------------------------------
Trustees' fees and expenses 41,364
----------------------------------------------------------------------------------------------------
Legal and auditing fees 27,955
----------------------------------------------------------------------------------------------------
Shareholder reports 24,543
----------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees - Note 4 21,996
----------------------------------------------------------------------------------------------------
Insurance expenses 5,091
----------------------------------------------------------------------------------------------------
Registration and filing fees:
Class A 2,419
Class B 1,287
----------------------------------------------------------------------------------------------------
Custodian fees and expenses 457
----------------------------------------------------------------------------------------------------
Other 4,532
-----------
Total expenses 425,170
-----------
Less reimbursement of expenses by OppenheimerFunds,
Inc. - Note 4 (209,449)
-----------
Net expenses 215,721
- ------------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 1,358,473
- ------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND Net realized loss on investments (116,007)
----------------------------------------------------------------------------------------------------
UNREALIZED GAIN (LOSS) Net change in unrealized appreciation or depreciation on investments 2,622,466
-----------
Net realized and unrealized gain 2,506,459
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $3,864,932
-----------
-----------
</TABLE>
See accompanying Notes to Financial Statements.
9 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31,
1995 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS Net investment income $ 1,358,473 $ 932,745
----------------------------------------------------------------------------------------------------
Net realized loss (116,007) (455,786)
-------------------------------
Net change in unrealized appreciation or depreciation 2,622,466 (1,795,681)
-------------------------------
Net increase (decrease) in net assets resulting
from operations 3,864,932 (1,318,722)
- ------------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS Dividends from net investment income:
TO SHAREHOLDERS Class A (824,373) (574,828)
Class B (528,564) (357,917)
Class C (79) --
- ------------------------------------------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST Net increase in net assets resulting from
TRANSACTIONS beneficial interest transactions - Note 2:
Class A 5,923,134 6,272,842
Class B 3,616,484 4,026,577
Class C 38,376 --
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS Total increase 12,089,910 8,047,952
----------------------------------------------------------------------------------------------------
Beginning of period 19,984,197 11,936,245
-------------------------------
End of period (including overdistributed
net investment income of $7,891 and
$5,485, respectively) $32,074,107 $19,984,197
-------------------------------
-------------------------------
</TABLE>
See accompanying Notes to Financial Statements.
10 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
CLASS A CLASS B CLASS C
------------------------------- ------------------------------ --------------
PERIOD ENDED
YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31, DECEMBER 31,
1995 1994 1993(2) 1995 1994 1993(2) 1995(1)
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA:
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $10.26 $11.79 $11.43 $10.27 $11.81 $11.43 $10.96
- -----------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .63 .64 .14 .55 .56 .12 .20
Net realized and unrealized gain (loss) 1.14 (1.53) .36 1.15 (1.54) .38 .44
- -----------------------------------------------------------------------------------------------------------------------------
Total income (loss) from investment
operations 1.77 (.89) .50 1.70 (.98) .50 .64
- -----------------------------------------------------------------------------------------------------------------------------
Dividends to shareholders from net
investment income (.63) (.64) (.14) (.55) (.56) (.12) (.20)
- ------------------------------------------------=============================================================================
Net asset value, end of period $11.40 $10.26 $11.79 $11.42 $10.27 $11.81 $11.40
=============================================================================
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE(3) 17.60% (7.66)% 4.39% 16.81% (8.42)% 4.35% 5.86%
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $19,377 $11,992 $7,062 $12,658 $7,992 $4,874 $39
- -----------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $14,508 $9,741 $2,471 $10,772 $6,987 $2,304 $5
- -----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 5.71% 5.90% 5.08%(4) 4.92% 5.13% 4.20%(4) 4.68%(4)
Expenses, before voluntary assumption by
the Manager or Distributor 1.36% 1.25% 1.89%(4) 2.11% 1.99% 2.20%(4) 1.92%(4)
Expenses, net of voluntary assumption by
the Manager or Distributor 0.53% 0.29% --%(4) 1.29% 1.03% 0.38%(4) 1.43%(4)
- -----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(5) 18.4% 30.4% --% 18.4% 30.4% --% 18.4%
</TABLE>
1. For the period from August 29, 1995 (inception of offering) to December 31,
1995.
2. For the period from October 1, 1993 (commencement of operations) to December
31, 1993.
3. 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.
Total returns are not annualized for periods of less than one full year.
4. Annualized.
5. 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 and
sales of investment securities (excluding short-term securities) for the period
ended December 31, 1995 were $13,939,320 and $4,541,471, respectively. See
accompanying Notes to Financial Statements.
11 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 objective is to seek as high a level of
current interest income exempt from federal income
tax for individual investors as is available from
municipal securities and consistent with preservation
of capital. The Fund's investment advisor is
OppenheimerFunds, Inc. (the Manager). The Fund offers
Class A, Class B and Class C shares. Class A shares
are sold with a front-end sales charge. Class B and
Class C shares may be subject to a contingent
deferred sales charge. All classes of shares have
identical rights to earnings, assets and voting
privileges, except that each class has its own
distribution and/or service 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 the close of the New York Stock Exchange on each
trading day. Listed and unlisted securities for which
such information is regularly reported are valued at
the last sale price of the day or, in the absence of
sales, at values based on the closing bid or asked
price or the last sale price on the prior trading
day. Long-term and short-term "non-money market" debt
securities are valued by a portfolio pricing service
approved by the Board of Trustees. Such securities
which cannot be valued by the approved portfolio
pricing service are valued using dealer-supplied
valuations provided the Manager is satisfied that the
firm rendering the quotes is reliable and that the
quotes reflect current market value, or are valued
under consistently applied procedures established by
the Board of Trustees to determine fair value in good
faith. Short-term "money market type" 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.
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 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 or excise tax provision is required. At
December 31, 1995, the Fund had available for federal
income tax purposes an unused capital loss carryover
of approximately $538,000, which expires in 2002 and
2003.
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. During the year ended December 31, 1995, a
provision of $25,751 was made for the Fund's
projected benefit obligations, and a payment of $422
was made to a retired trustee, resulting in an
accumulated liability of $25,329 at December 31,
1995.
12 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
1. SIGNIFICANT ACCOUNTING POLICIES (Continued)
ORGANIZATION COSTS. The Manager advanced $1,480 for
organization and start-up costs of the Fund. Such
expenses are being amortized over a five-year period
from the effective 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, Class B and
Class C shares from net investment income each day
the New York Stock Exchange is open for business and
pay such dividends monthly. Distributions from net
realized gains on investments, if any, will be
declared at least once each year.
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS. Net
investment income (loss) and net realized gain (loss)
may differ for financial statement and tax purposes
primarily because of premium amortization for tax
purposes. The character of the 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 timing of dividend distributions, the
fiscal year in which amounts are distributed may
differ from the year that the income or realized gain
(loss) was recorded by the Fund.
During the year ended December 31, 1995, the Fund
changed the classification of distributions to
shareholders to better disclose the differences
between financial statement amounts and distributions
determined in accordance with income tax regulations.
Accordingly, during the year ended December 31, 1995,
amounts have been reclassified to reflect an increase
in overdistributed net investment income of $7,863.
Accumulated net realized loss on investments was
decreased by the same amount.
OTHER. Investment transactions are accounted for on
the date the investments are purchased or sold (trade
date). Original issue discount on securities
purchased is amortized over the life of the
respective securities, in accordance with federal
income tax requirements. For bonds acquired after
April 30, 1993, on disposition or maturity, taxable
ordinary income is recognized to the extent of the
lesser of gain or market discount that would have
accrued over the holding period. 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. The Fund concentrates its
investments in Florida and, therefore, may have more
credit risks related to the economic conditions of
Florida than a portfolio with a broader geographical
diversification.
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 income and expenses
during the reporting period. Actual results could
differ from those estimates.
13 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
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>
YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
1995(1) 1994
------------------------ ----
SHARES AMOUNT SHARES AMOUNT
Class A:
<S> <C> <C> <C> <C>
Sold 828,453 $ 9,144,873 1,094,994 $11,835,206
Dividends reinvested 29,020 318,951 23,730 253,862
Redeemed (327,025) (3,540,690) (548,471) (5,816,226)
--------- ----------- ---------- ------------
Net increase 530,448 $5,923,134 570,253 $ 6,272,842
========= =========== ========== ===========
Class B:
Sold 419,746 $4,609,025 481,494 $ 5,234,804
Dividends reinvested 15,141 166,726 10,745 114,966
Redeemed (104,153) (1,159,267) (126,967) (1,323,193)
--------- ----------- ---------- ------------
Net increase 330,734 $3,616,484 365,272 $ 4,026,577
========= =========== ========== ===========
Class C:
Sold 3,407 $ 38,376 -- $ --
Dividends reinvested -- -- -- --
Redeemed -- -- -- --
--------- ----------- ---------- -----------
Net increase 3,407 $ 38,376 -- $ --
========= =========== ========== ===========
</TABLE>
1. For the year ended December 31, 1995 for both
Class A and Class B shares and for the period from
August 29, 1995 (inception of offering) to December
31, 1995 for Class C shares.
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
At December 31, 1995, net unrealized appreciation on
investments of $956,884 was composed of gross
appreciation of $1,111,506, and gross depreciation of
$154,622.
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 a fee of .60% on the
first $200 million of average annual 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 year ended December 31, 1995, commissions
(sales charges paid by investors) on sales of Class A
shares totaled $131,060, of which $21,670 was
retained by OppenheimerFunds Distributor, Inc.
(OFDI), a subsidiary of the Manager, as general
distributor, and by an affiliated broker/dealer.
Sales charges advanced to broker/dealers by OFDI on
sales of the Fund's Class B shares totaled $116,695,
of which $324 was paid to an affiliated
broker/dealer. During the year ended December 31,
1995, OFDI received contingent deferred sales charges
of $42,273 upon redemption of Class B shares as
reimbursement for sales commissions advanced by OFDI
at the time of sale of such shares.
OppenheimerFunds Services (OFS), a division of the
Manager, is the transfer and shareholder servicing
agent for the Fund, and for other registered
investment companies. OFS's total costs of providing
such services are allocated ratably to these
companies.
14 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
4. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES (Continued)
Under separate approved plans, each class may expend
up to .25% (voluntarily reduced to .15% by the Fund's
Board) of its net assets annually to compensate OFDI
for costs incurred in connection with the personal
service and maintenance of accounts that hold shares
of the Fund, including amounts paid to brokers,
dealers, banks and other institutions. In addition,
Class B and Class C shares are subject to an
asset-based sales charge of .75% of net assets
annually, to compensate 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 or Class
C plan, the Board of Trustees may allow the Fund to
continue payment of the asset-based sales charge to
OFDI for distribution expenses incurred on Class B or
Class C shares sold prior to termination or
discontinuance of the plan. At December 31, 1995,
OFDI had incurred unreimbursed expenses of $438,657
for Class B. During the year ended December 31, 1995,
OFDI paid $301 and $275, respectively, to an
affiliated broker/dealer as compensation for Class A
and Class B personal service and maintenance
expenses, and retained $86,852 as compensation for
Class B sales commissions and service fee advances,
as well as financing costs.
15 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders of Oppenheimer
Multi-State Tax-Exempt Trust:
We have audited the accompanying statements of
investments and assets and liabilities of Oppenheimer
Florida Tax-Exempt Fund (a series of Oppenheimer
Multi-State Tax-Exempt Trust) as of December 31,
1995, and the related statement of operations for the
year then ended, the statements of changes in net
assets for each of the years in the two-year period
then ended, and the financial highlights for each of
the years in the two-period then ended and for the
period from October 1, 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 audits.
We conducted our audits 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. Our
procedures included confirmation of securities owned
as of December 31, 1995, by correspondence with the
custodian. 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
audits provide 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, 1995, the results of its operations for
the year then ended, the changes in its net assets
for each of the years in the two-year period then
ended, and the financial highlights for each of the
years in the two-year period then ended and for the
period from October 1, 1993 (commencement of
operations) to December 31, 1993, in conformity with
generally accepted accounting principles.
KPMG PEAT MARWICK LLP
Denver, Colorado
January 22, 1996
16 Oppenheimer Florida Tax-Exempt Fund
<PAGE>
FEDERAL INCOME TAX INFORMATION (Unaudited)
In early 1996, shareholders will receive information
regarding all dividends and distributions paid to
them by the Fund during calendar year 1995.
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 year ended December 31, 1995 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 advisor for
specific guidance.
17 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
Robert G. Galli, Trustee
Benjamin Lipstein, Trustee
Bridget A. Macaskill, Trustee and President
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
Pauline Trigere, Trustee
Clayton K. Yeutter, Trustee
Robert E. Patterson, Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
INVESTMENT ADVISOR OppenheimerFunds, Inc.
DISTRIBUTOR OppenheimerFunds Distributor, Inc.
TRANSFER AND OppenheimerFunds Services
SHAREHOLDER SERVICING
AGENT
CUSTODIAN OF Citibank, N.A.
PORTFOLIO SECURITIES
INDEPENDENT AUDITORS KPMG Peat Marwick LLP
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.
Shares of Oppenheimer funds are not deposits or obligations of any bank, are not
guaranteed by any bank, and are not insured by the FDIC or any other agency, and
involve investment risks, including possible loss of the principal amount
invested.
18 Oppenheimer Florida Tax-Exempt Fund
