VAN KAMPEN MERRITT NEW YORK QUALITY MUNICIPAL TRUST, N-30D, 1995-10-27

VAN KAMPEN MERRITT NEW YORK QUALITY MUNICIPAL TRUST
N-30D, 1995-10-27

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<TABLE>
<CAPTION>
Table of Contents
<S> <C>
Letter to Shareholders................. 1
Performance Results.................... 3
Portfolio of Investments............... 4
Statement of Assets and Liabilities.... 7
Statement of Operations................ 8
Statement of Changes in Net Assets..... 9
Financial Highlights................... 10
Notes to Financial Statements.......... 11
Independent Auditors' Report........... 14
Dividend Reinvestment Plan............. 15
</TABLE>

Letter to Shareholders

October 12, 1995

Dear Shareholder:
The first eight months of 1995 have been very positive for most investors.
Both the fixed-income and stock markets have made considerable gains for the
period ended August 31, 1995.
This year serves as a reminder of just how quickly markets can move and how
difficult it can be to predict the timing of those movements. Moreover, this
year reinforces the importance of maintaining a long-term perspective and
reaffirms the principle that it is time---not timing---that leads to
investment success.

[PHOTO]
Dennis J. McDonnell and Don G. Powell

Economic Overview

Due in large part to the Federal Reserve Board's efforts to tighten monetary
supply in 1994, the economy has slowed significantly this year. Evidence of
this guided slowdown was reflected in gross domestic product for the second
quarter, which grew at an annual rate of 1.3 percent, substantially lower than
its first quarter rate of 2.7 percent and fourth quarter 1994 rate of 5.1
percent. While other key economic data, including unemployment rates and
housing starts, have shown mixed signs during recent months, the general trends
for the year continue to support a "soft landing" scenario.
Comfortable with the economy's rate of growth and level of inflation, the Fed
reversed its trend of raising interest rates and lowered short-term rates by
0.25 percent on July 6. Financial markets, perceiving the Fed's monetary
initiatives had taken hold without driving the economy into a recession, rallied
through much of the year. With slowing growth, interest rates declined and the
value of many fixed-income investments rose (bond yields and prices move in the
opposite direction). For example, the yield on 30-year Treasury securities fell
from 7.88 percent at the end of December to 6.66 percent at the end of August,
while its price rose more than 14 percent. Likewise, the yield on the Bond
Buyer's Municipal Bond Index fell from 7.28 percent at the end of December to
6.30 percent at the end of August. Although municipal bond yields have
declined, they are still offering competitive yields, particularly to those
investors in higher tax brackets.

Performance Summary

The Trust produced a tax-exempt distribution rate of 6.77 percent<F3>, based
on the closing stock price of $15.50 per common share on August 31, 1995. Since
income from the Trust is exempt from federal and state income tax, it is also
important to compare the Trust's distribution

(Continued on page two)

rate to an equivalent taxable rate. For example, for New York residents in the
combined marginal tax bracket of 41 percent, the Trust's distribution rate
represents a yield equivalent to a taxable investment earning 11.47
percent<F4>. Additionally, for the one-year period ended August 31, 1995, the
Trust generated a total return at market price of 9.73 percent<F1>, which
includes reinvestment of dividends and capital gains.
One element influencing the performance of the municipal market this year has
been the ongoing debate over tax reform. While there has been varied speculation
about the impact of reform, no one is certain about what will happen.
Consequently, the municipal market may continue to experience short-term market
fluctuations as various proposals come to the forefront. We will keep a close
watch over any new developments and evaluate the potential impact they may have
on your investment in the Trust.

Outlook

We believe the Fed will move cautiously before it continues to lower
short-term rates, waiting for further signs that the economy has settled into a
slow growth pattern. We anticipate the economy will grow at an annual rate
between 2 and 3 percent in the second half of the year, and that inflation will
run at an annualized rate between 3.1 and 3.3 percent. Based upon a generally
modest growth and low inflation outlook, we believe fixed-income
markets---including municipal bonds---will continue to make positive gains.
As interest rates continue to fall in response to further easing by the Fed,
we believe yields on short-term municipal bonds will continue to move
significantly lower than long-term municipal bonds. Lower short-term rates
typically translate into lower leveraging costs for the Trust, which provides
increased opportunities for higher earnings over time. We believe the Trust's
portfolio is well positioned to take advantage of a declining and sustained
short-term interest rate environment.
Once again, it is important to remember that financial markets will inevitably
experience highs and lows, but by maintaining a long-term investment
perspective, you may ride the ups and downs of the markets more easily as you
pursue your investment goals.
Thank you for your continued confidence in your investment with Van Kampen
American Capital and for the privilege of working with you in seeking to reach
your financial goals.

Sincerely,

Don G. Powell Dennis J. McDonnell
Chairman President
Van Kampen American Capital Van Kampen American Capital
Investment Advisory Corp. Investment Advisory Corp.

<TABLE>
Performance Results for the Period Ended August 31, 1995
Van Kampen Merritt New York Quality Municipal Trust
(NYSE Ticker Symbol-VNM)
- -------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C>
Total Returns

One-year total return based on market price<F1>........................................ 9.73%
One-year total return based on NAV<F2>................................................. 7.29%

Distribution Rates

Distribution rate as a % of initial offer common stock price<F3>....................... 7.00%
Taxable-equivalent distribution rate as a % of initial offer common stock price<F4>.... 11.86%
Distribution rate as a % of closing common stock price<F3>............................. 6.77%
Taxable-equivalent distribution rate as a % of closing common stock price<F4>.......... 11.47%

Share Valuations

Net asset value........................................................................ $ 16.47
Closing common stock price............................................................. $ 15.500
One-year high common stock price (08/02/95)............................................ $ 16.000
One-year low common stock price (11/15/94)............................................. $ 12.750
Preferred share rate<F5>............................................................... 3.76%

<FN>
<F1>Total return based on market price assumes an investment at the market price at
the beginning of the period indicated, reinvestment of all distributions for the
period in accordance with the Trust's dividend reinvestment plan, and sale of
all shares at the closing stock price at the end of the period indicated.

<F2>Total return based on net asset value (NAV) assumes an investment at the
beginning of the period indicated, reinvestment of all distributions for the
period, and sale of all shares at the end of the period, all at NAV.

<F3>Distribution rate represents the monthly annualized distributions of the Trust
at the end of the period and not the earnings of the Trust.

<F4>The taxable-equivalent distribution rate is calculated assuming a 41% combined
federal and state tax bracket, which takes into consideration the deductibility
of individual state taxes paid.

<F5>See "Notes to Financial Statements" footnote #4, for more information
concerning Preferred Share reset periods.

A portion of the interest income may be taxable for those investors subject to
the federal alternative minimum tax (AMT).

Past performance does not guarantee future results. Investment return, stock
price and net asset value will fluctuate with market conditions. Trust shares,
when sold, may be worth more or less than their original cost.
</TABLE>
3

<TABLE>
Portfolio of Investments
August 31, 1995
- -------------------------------------------------------------------------------------------------
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Municipal Bonds
New York 88.7%
$ 1,000 Erie Cnty, NY Ser B (FGIC Insd) ...................... 5.625% 06/15/20 $ 967,470
1,000 Erie Cnty, NY Ser B (FGIC Insd) ...................... 5.500 06/15/25 947,440
3,000 Grand Cent Dist Mgmt Assn Inc NY Business Impt Dist
Cap Impt (Prerefunded @ 01/01/02) .................... 6.500 01/01/22 3,372,480
2,500 Herkimer Cnty, NY Indl Dev Agy Indl Dev Rev Burrows
Paper Corp Recycling ................................. 8.000 01/01/09 2,662,400
4,000 Monroe Cnty, NY Arpt Auth Rev Greater Rochester Intl
(MBIA Insd) .......................................... 7.250 01/01/09 4,455,720
1,400 Monroe Cnty, NY Indl Dev Agy Rev Pub Impt Canal Ponds
Park Ser A ........................................... 7.000 08/18/99 1,452,752
2,000 Nassau Cnty, NY (FGIC Insd) .......................... 5.200 08/01/13 1,912,320
1,000 New York City Indl Dev Agy Spl Fac Rev 1990
AMR/American Airls Inc ............................... 7.750 07/01/19 1,060,050
1,500 New York City Indl Dev Agy Spl Fac Rev Terminal One
Group Assn Proj ...................................... 6.000 01/01/19 1,441,665
2,000 New York City Muni Wtr Fin Auth Wtr & Swr Sys Rev Ser
A .................................................... 5.500 06/15/23 1,845,120
5,000 New York City Muni Wtr Fin Auth Wtr & Swr Sys
Rev Ser F (AMBAC Insd) ............................... 5.500 06/15/12 4,860,800
2,840 New York City Ser A .................................. 7.750 08/15/06 3,141,182
10,000 New York City Ser B (Embedded Cap) <F2> .............. 6.600 10/01/16 10,012,900
5,000 New York City Ser C Subser C1 ........................ 7.500 08/01/20 5,392,300
240 New York City Ser F .................................. 8.250 11/15/16 273,038
2,760 New York City Ser F (Prerefunded @ 11/15/01) ......... 8.250 11/15/16 3,357,844
2,000 New York St Dorm Auth Rev City Univ Sys Cons Ser A
(Prerefunded @ 07/01/00) ............................. 7.625 07/01/20 2,316,020
1,000 New York St Dorm Auth Rev Court Fac Lease Ser A ...... 5.250 05/15/21 870,490
2,075 New York St Dorm Auth Rev Genessee Valley Ser B (FHA
Insd) ................................................ 6.900 08/01/32 2,229,090
2,000 New York St Dorm Auth Rev Miriam Osborn Mem Home Ser
B Var Rate Cpn ....................................... 6.000 07/01/24 2,088,920
1,000 New York St Dorm Auth Rev NY Pub Lib (MBIA Insd) ..... * 07/01/06 572,810
905 New York St Dorm Auth Rev NY Pub Lib (MBIA Insd) ..... * 07/01/07 485,641
1,000 New York St Dorm Auth Rev NY Pub Lib (MBIA Insd) ..... * 07/01/08 502,170
1,000 New York St Dorm Auth Rev NY Pub Lib (MBIA Insd) ..... * 07/01/09 468,300
1,000 New York St Dorm Auth Rev NY Pub Lib (MBIA Insd) ..... * 07/01/10 435,700
5,000 New York St Dorm Auth Rev St Univ Edl Ser B .......... 5.000 05/15/18 4,230,700
2,000 New York St Dorm Auth Rev Upstate Cmnty Colleges Ser
B (Prerefunded @ 07/01/01) ........................... 7.375 07/01/11 2,314,980
2,000 New York St Dorm Auth Rev Upstate Cmnty Colleges Ser
B (Prerefunded @ 07/01/01) ........................... 7.200 07/01/21 2,292,800
</TABLE>
4 See Notes to Financial Statements

<TABLE>
Portfolio of Investments
August 31, 1995
- --------------------------------------------------------------------------------------------------
<CAPTION>
Par
Amount
(000) Description Coupon Maturity Market Value
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
New York (Continued)
$ 3,500 New York St Energy Resh & Dev Auth Elec Fac Rev Cons
Edison Co NY Inc Proj (MBIA Insd) ...................... 6.000% 03/15/28 $ 3,438,470
2,750 New York St Energy Resh & Dev Auth Elec Fac Rev Cons
Edison Co NY Inc Proj Ser A (MBIA Insd) ................ 7.125 03/15/22 2,914,642
1,110 New York St Energy Resh & Dev Auth Elec Fac Rev Cons
Edison Co NY Inc Proj Ser A (MBIA Insd) ................ 7.500 01/01/26 1,216,227
1,750 New York St Energy Resh & Dev Auth Elec Fac Rev Cons
Edison Co NY Inc Proj Ser A (MBIA Insd) ................ 6.750 01/15/27 1,818,005
3,000 New York St Energy Resh & Dev Auth Gas Fac Rev Brooklyn
Union Gas Ser C (MBIA Insd) ............................ 5.600 06/01/25 2,818,350
4,000 New York St Energy Resh & Dev Auth Pollutn Ctl Rev
Niagara Mohawk Pwr Rfdg (FGIC Insd) .................... 6.625 10/01/13 4,252,680
3,215 New York St Environmental Fac Corp Pollutn Ctl Rev NYC
Muni Wtr Fin Auth Ser E ................................ 6.600 06/15/09 3,483,742
2,325 New York St Hsg Fin Agy Rev Newburgh Interfaith Hsg Ser
A ...................................................... 7.050 11/01/12 2,452,921
1,500 New York St Loc Govt Assistance Corp Ser D (Prerefunded
@ 04/01/02) ............................................ 7.000 04/01/18 1,732,065
185 New York St Med Care Fac Fin Agy Rev Mental Hlth
Svcs Fac Ser C ......................................... 7.300 02/15/21 198,910
565 New York St Med Care Fac Fin Agy Rev Mental Hlth Svcs
Fac Ser C (Prerefunded @ 08/15/01) ..................... 7.300 02/15/21 657,756
2,470 New York St Med Care Fac Fin Agy Rev Mental Hlth Svcs
Fac Ser D .............................................. 7.400 02/15/18 2,674,022
2,000 New York St Med Care Fac Fin Agy Rev Presbyterian Hosp
Ser A Rfdg (FHA Gtd) ................................... 5.375 02/15/25 1,825,540
2,935 New York St Med Care Fac Fin Agy Rev Ser B (FHA Gtd) ... 5.500 02/15/22 2,778,653
1,000 New York St Muni Bond Bk Agy Spl Pgm Rev Buffalo Ser A
........................................................ 6.875 03/15/06 1,055,120
3,000 New York St Muni Bond Bk Agy Spl Pgm Rev Rochester Ser
A ...................................................... 6.750 03/15/11 3,192,840
5,000 New York St Urban Dev Corp Rev Correctional Cap Fac Ser
3 (Prerefunded @ 01/01/02) ............................. 7.000 01/01/21 5,751,250
2,000 New York St Urban Dev Corp Rev Correctional Fac Rfdg ... 5.625 01/01/07 1,948,380
2,665 Port Auth NY & NJ Cons Nts Ser SS ...................... 4.900 09/01/97 2,666,359
2,500 Port Auth NY & NJ Cons Ser 77 .......................... 6.250 01/15/27 2,532,250
1,000 Port Auth NY & NJ Delta Airls Inc Proj Ser 1R .......... 6.950 06/01/08 1,039,670
1,610 Troy, NY Indl Dev Auth Lease Rev City of Troy Proj ..... 8.000 03/15/12 1,731,346
1,540 Troy, NY Indl Dev Auth Lease Rev City of Troy Proj ..... 8.000 03/15/22 1,647,646
</TABLE>
5 See Notes to Financial Statements

Short-Term Investments at Amortized Cost 2.3%........................................ 3,200,000

Other Assets in Excess of Liabilities 1.0%........................................... 1,346,694
-------------
Net Assets 100%...................................................................... $ 137,942,548
=============

*Zero coupon bond

<FN>
<F1> At August 31, 1995, cost for federal income tax purposes is $124,637,512;
the aggregate gross unrealized appreciation is $8,803,693 and the
aggregate gross unrealized depreciation is $45,351, resulting in net
unrealized appreciation of $8,758,342.

<F2> An Embedded Cap security includes a cap strike level such that the coupon
payment may be supplemented by cap payments if the floating rate index
upon which the cap is based rises above the strike level. The price of
these securities may be more volatile than the price of a comparable fixed
rate security. The Trust invests in these instruments as a hedge against a
rise in the short-term interest rates which it pays on its preferred
shares.
</TABLE>

The following table summarizes the portfolio composition at August 31, 1995,
based upon quality ratings issued by Standard & Poor's. For securities not rated
by Standard & Poor's, the Moody's rating is used.

<TABLE>
<CAPTION>
Portfolio Composition by Credit Quality
<S> <C>
AAA........... 40.0%
AA............ 3.6
A............. 20.9
BBB........... 25.6
BB............ 1.5
Non-Rated..... 8.4
-------
100.0%
=======
</TABLE>
6 See Notes to Financial Statements

<TABLE>
Statement of Assets and Liabilities
August 31, 1995
- ------------------------------------------------------------------------------------------------------------
<CAPTION>
<S> <C>
Assets:
Investments, at Market Value (Cost $124,637,512) (Note 1)................................... $ 133,395,854
Short-Term Investments (Note 1)............................................................. 3,200,000
Receivables:
Interest.................................................................................. 2,104,254
Investments Sold.......................................................................... 1,337,544
Unamortized Organizational Expenses (Note 1)................................................ 6,437
---------------
Total Assets................................................................................ 140,044,089
---------------
Liabilities:
Payables:
Custodian Bank............................................................................ 1,725,898
Income Distributions - Common and Preferred Shares........................................ 127,070
Investment Advisory Fee (Note 2).......................................................... 81,079
Administrative Fee (Note 2)............................................................... 23,165
Accrued Expenses............................................................................ 144,329
---------------
Total Liabilities......................................................................... 2,101,541
---------------
Net Assets.................................................................................. $ 137,942,548
===============
Net Assets Consist of:
Preferred Shares ($.01 par value, authorized 100,000,000 shares, 900 issued with
liquidation preference of $50,000 per share) (Note 4)....................................... $ 45,000,000
---------------

Common Shares ($.01 par value with an unlimited number of shares authorized,

5,643,496 shares issued and outstanding).................................................... 56,435
Paid in Surplus ............................................................................ 83,381,765
Net Unrealized Appreciation on Investments.................................................. 8,758,342
Accumulated Undistributed Net Investment Income............................................. 1,110,128
Accumulated Net Realized Loss on Investments................................................ (364,122)
---------------
Net Assets Applicable to Common Shares.................................................... 92,942,548
---------------
Net Assets.................................................................................. $ 137,942,548
===============
Net Asset Value Per Common Share ($92,942,548 divided by 5,643,496 shares outstanding)...... $ 16.47
===============
</TABLE>
7 See Notes to Financial Statements

<TABLE>
Statement of Operations
For the Year Ended August 31, 1995
- --------------------------------------------------------------------------------
<CAPTION>
<S> <C>
Investment Income:
Interest........................................................ $ 8,600,407
---------------
Expenses:
Investment Advisory Fee (Note 2)................................ 942,997
Administrative Fee (Note 2)..................................... 269,428
Preferred Share Maintenance (Note 4)............................ 129,964
Trustees Fees and Expenses (Note 2)............................. 24,787
Legal (Note 2).................................................. 21,900
Amortization of Organizational Expenses (Note 1)................ 5,993
Other........................................................... 195,328
---------------
Total Expenses................................................ 1,590,397
---------------
Net Investment Income........................................... $ 7,010,010
===============
Realized and Unrealized Gain/Loss on Investments:
Realized Gain/Loss on Investments:
Proceeds from Sales........................................... $ 65,779,774
Cost of Securities Sold....................................... (66,133,161)
---------------
Net Realized Loss on Investments ............................... (353,387)
---------------
Unrealized Appreciation/Depreciation on Investments:
Beginning of the Period....................................... 7,454,355
End of the Period............................................. 8,758,342
---------------
Net Unrealized Appreciation on Investments During the Period.... 1,303,987
---------------
Net Realized and Unrealized Gain on Investments................. $ 950,600
===============
Net Increase in Net Assets from Operations...................... $ 7,960,610
===============
</TABLE>
8 See Notes to Financial Statements

<TABLE>
Statement of Changes in Net Assets
For the Years Ended August 31, 1995 and 1994
- -----------------------------------------------------------------------------------------------------
<CAPTION>
Year Ended Year Ended
August 31, 1995 August 31, 1994
- -----------------------------------------------------------------------------------------------------
<S> <C> <C>
From Investment Activities:
Operations:
Net Investment Income.............................................. $ 7,010,010 $ 7,346,702
Net Realized Gain/Loss on Investments.............................. (353,387) 1,444,297
Net Unrealized Appreciation/Depreciation on Investments During the
Period............................................................. 1,303,987 (8,010,927)
--------------- ---------------
Change in Net Assets from Operations .............................. 7,960,610 780,072
--------------- ---------------
Distributions from Net Investment Income:
Common Shares.................................................... (5,925,449) (5,925,545)
Preferred Shares................................................. (1,504,765) (1,193,242)
--------------- ---------------

(7,430,214) (7,118,787)
--------------- ---------------
Distributions from and in Excess of Net Realized Gain on
Investments (Note 1):
Common Shares.................................................... (1,218,434) (997,205)
Preferred Shares................................................. (236,601) (145,494)
--------------- ---------------

(1,455,035) (1,142,699)
--------------- ---------------
Total Distributions................................................ (8,885,249) (8,261,486)
--------------- ---------------
Net Change in Net Assets from Investment Activities................ (924,639) (7,481,414)
Net Assets:
Beginning of the Period............................................ 138,867,187 146,348,601
--------------- ---------------
End of the Period (Including undistributed net investment income
of $1,110,128 and $1,530,332, respectively)........................ $ 137,942,548 $ 138,867,187
--------------- ---------------
</TABLE>
9 See Notes to Financial Statements

<TABLE>
Financial Highlights
The following schedule presents financial highlights for one common share
of the Trust outstanding throughout the periods indicated.
- -----------------------------------------------------------------------------------------
<CAPTION>
September 27, 1991
(Commencement
Year Ended August 31 of Investment
-------------------------------- Operations) to
1995 1994 1993 August 31, 1992
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value,
Beginning of the Period <F1>........... $ 16.633 $ 17.958 $ 16.303 $ 14.777
---------- ----------- ---------- ----------
Net Investment Income.................. 1.243 1.302 1.307 1.068
Net Realized and Unrealized Gain/Loss
on Investments......................... .168 (1.163) 1.640 1.400
---------- ----------- ---------- ----------
Total from Investment Operations....... 1.411 .139 2.947 2.468
---------- ----------- ---------- ----------
Less:
Distributions from Net Investment
Income:
Paid to Common Shareholders............ 1.050 1.050 1.007 .743
Common Share Equivalent of
Distributions Paid to Preferred
Shareholders........................... .267 .211 .195 .199
Distributions from and in Excess of
Net Realized Gain on Investments (Note
1):
Paid to Common Shareholders............ .216 .177 .071 -0-
Common Share Equivalent of
Distributions Paid to
Preferred Shareholders................. .042 .026 .019 -0-
---------- ----------- ---------- ----------
Total Distributions.................... 1.575 1.464 1.292 .942
---------- ----------- ---------- ----------
Net Asset Value, End of the Period..... $ 16.469 $ 16.633 $ 17.958 $ 16.303
========== =========== ========== ==========
Market Price Per Share at End of the
Period................................. $ 15.500 $ 15.375 $ 17.250 $ 15.625
Total Investment Return
at Market Price (Non-Annualized)
<F2>................................... 9.73% (4.08%) 17.94% 9.39%
Total Return at Net Asset
Value (Non-Annualized) <F3>............ 7.29% (.67%) 17.42% 14.00%
Net Assets at End of the Period
(In millions).......................... $ 137.9 138.9 146.3 137.0
Ratio of Expenses to Average Net
Assets Applicable to Common Shares
(Annualized)........................... 1.76% 1.66% 1.66% 1.67%
Ratio of Expenses to Average Net
Assets (Annualized).................... 1.17% 1.14% 1.13% 1.17%
Ratio of Net Investment Income to
Average Net Assets Applicable to
Common Shares (Annualized) (d)......... 6.08% 6.31% 6.58% 6.27%
Portfolio Turnover..................... 49.89% 21.04% 25.18% 65.10%

<FN>
<F1> Net asset value at September 27, 1991, is adjusted for common and
preferred share offering costs of $.223 per common share.

<F2> Total investment return at market price reflects the change in market
value of the common shares for the period indicated with reinvestment of
dividends in accordance with the Trust's dividend reinvestment plan.

<F3> Total return at net asset value (NAV) reflects the change in value of the
Trust's assets with reinvestment of dividends based upon NAV.

<F4> Net investment income is adjusted for common share equivalent of
distributions paid to preferred shareholders.
</TABLE>
10 See Notes to Financial Statements

Notes to Financial Statements
August 31, 1995
- --------------------------------------------------------------------------------

1. Significant Accounting Policies

Van Kampen Merritt New York Quality Municipal Trust (the "Trust") is registered
as a non-diversified closed-end management investment company under the
Investment Company Act of 1940, as amended. The Trust commenced investment
operations on September 27, 1991.
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements.

A. Security Valuation---Investments are stated at value using market quotations
or, if such valuations are not available, estimates obtained from yield data
relating to instruments or securities with similar characteristics in accordance
with procedures established in good faith by the Board of Trustees. Short-term
securities with remaining maturities of less than 60 days are valued at
amortized cost.

B. Security Transactions---Security transactions are recorded on a trade date
basis.Realized gains and losses are determined on an identified cost basis. The
Trust may purchase and sell securities on a "when issued" or "delayed delivery"
basis, with settlement to occur at a later date. The value of the security so
purchased is subject to market fluctuations during this period. The Trust will
maintain, in a segregated account with its custodian, assets having an
aggregate value at least equal to the amount of the when issued or delayed
delivery purchase commitments until payment is made. At August 31, 1995,
there were no when issued or delayed delivery purchase commitments.

C. Investment Income---Interest income is recorded on an accrual basis. Bond
premium and original issue discount are amortized over the expected life of each
applicable security.

D. Organizational Expenses---The Trust has reimbursed Van Kampen American
Capital Distributors, Inc. or its affiliates (collectively "VKAC") for costs
incurred in connection with the Trust's organization and initial registration in
the amount of $30,000. These costs are being amortized on a straight line basis
over the 60-month period ending September 26, 1996.
Van Kampen American Capital Investment Advisory Corp. (the "Adviser") has agreed
that in the event any of the initial shares of the Trust originally purchased by
VKAC are redeemed during the amortization period, the Trust will be reimbursed
for any unamortized organizational expenses in the same proportion as the number
of shares redeemed bears to the number of initial shares held at the time of
redemption.

Notes to Financial Statements (Continued)
August 31, 1995
- --------------------------------------------------------------------------------

E. Federal Income Taxes---It is the Trust's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute substantially all of its taxable income to its
shareholders. Therefore, no provision for federal income taxes is required.

F. Distribution of Income and Gains---The Trust declares and pays monthly
dividendsfrom net investment income to common shareholders. Net realized gains,
if any, are distributed annually on a pro rata basis to common and preferred
shareholders. Distributions from net realized gains for book purposes may
include short-term capital gains, which are included as ordinary income for tax
purposes.

2. Investment Advisory Agreement and Other Transactions with Affiliates

Under the terms of the Trust's Investment Advisory Agreement, the Adviser will
provide investment advice and facilities to the Trust for an annual fee payable
monthly of .70% of the average net assets of the Trust. In addition, the Trust
will pay a monthly administrative fee to VKAC, the Trust's Administrator, at an
annual rate of .20% of the average net assets of the Trust. The administrative
services provided by the Administrator include record keeping and reporting
responsibilities with respect to the Trust's portfolio and preferred shares and
providing certain services to shareholders.
Certain legal expenses are paid to Skadden, Arps, Slate, Meagher & Flom,
counsel to the Trust, of which a trustee of the Trust is an affiliated person.
For the year ended August 31, 1995, the Trust recognized expenses of
approximately $16,000 representing VKAC's cost of providing accounting and legal
services to the Trust.
Certain officers and trustees of the Trust are also officers and directors of
the Adviser and VKAC. The Trust does not compensate its officers or trustees who
are officers of VKAC.
The Trust has implemented deferred compensation and retirement plans for its
trustees. Under the deferred compensation plan, trustees may elect to defer all
or a portion of their compensation to a later date. The retirement plan covers
those trustees who are not officers
of VKAC. The Trust's liability under the deferred compensation and retirement
plans at August 31, 1995, was $22,800.
At August 31, 1995, VKAC owned 6,700 common shares of the Trust.

Notes to Financial Statements (Continued)
August 31, 1995
- --------------------------------------------------------------------------------

3. Investment Transactions

Aggregate purchases and cost of sales of investment securities, excluding
short-term notes, for the year ended August 31, 1995, were $65,234,520 and
$66,133,161, respectively.

4. Preferred Shares

The Trust has outstanding 900 Auction Preferred Shares ("APS"). Dividends are
cumulative and the dividend rate is reset through an auction process every 28
days. The rate in effect on August 31, 1995, was 3.76%. During the year ended
August 31, 1995, the rates ranged from 3.00% to 4.249%.
The Trust pays annual fees equivalent to .25% of the preferred share
liquidation value for the remarketing efforts associated with the preferred
auctions. These fees are included as a component of Preferred Share Maintenance
expense.
The APS are redeemable at the option of the Trust in whole or in part at the
liquidation value of $50,000 per share plus accumulated and unpaid dividends.
The Trust is subject to certain asset coverage tests, and the APS are subject to
mandatory redemption if the tests are not met.

Independent Auditors' Report

The Board of Trustees and Shareholders of
Van Kampen Merritt New York Quality Municipal Trust:

We have audited the accompanying statement of assets and liabilities of Van
Kampen Merritt New York Quality Municipal Trust (the "Trust"), including the
portfolio of investments, as of August 31, 1995, and the related statement of
operations for the year then ended, the statement of changes in net assets for
each of the two years in the period then ended, and the financial highlights for
each of the periods presented. These financial statements and financial
highlights are the responsibility of the Trust'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
August 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 Van
Kampen Merritt New York Quality Municipal Trust as of August 31, 1995, the
results of its operations for the year then ended, the changes in its net assets
for each of the two years in the period then ended, and the financial highlights
for each of the periods presented, in conformity with generally accepted
accounting principles.

KPMG Peat Marwick LLP
Chicago, Illinois
October 11, 1995

Dividend Reinvestment Plan

The Trust offers a dividend reinvestment plan (the "Plan") pursuant to which
Common Shareholders may elect to have dividends and capital gains distributions
reinvested in Common Shares of the Trust. The Trust declares dividends out of
net investment income, and will distribute annually net realized capital gains,
if any. Common Shareholders may join or withdraw from the Plan at
any time.
If you decide to participate in the Plan, State Street Bank and Trust Company,
as your Plan Agent, will automatically invest your dividends and capital gains
distributions in Common Shares of the Trust for your account.

How to Participate

If you wish to participate and your shares are held in your own name, call
1-800-341-2929 for more information and a Plan brochure. If your shares are held
in the name of a brokerage firm, bank, or other nominee, you should contact your
nominee to see if it would participate in the Plan on your behalf. If you wish
to participate in the Plan, but your brokerage firm, bank or nominee is unable
to participate on your behalf, you should request that your shares be
re-registered in your own name which will enable your participation in the Plan.

How the Plan Works

Participants in the Plan will receive the equivalent in Common Shares valued on
the valuation date, generally at the lower of market price or net asset value,
except as specified below. The valuation date will be the dividend or
distribution payment date or, if that date is not a trading day on the national
securities exchange or market system on which the Common Shares are listed for
trading, the next preceding trading day. If the market price per Common Share on
the valuation date equals or exceeds net asset value per Common Share on that
date, the Trust will issue new Common Shares to participants valued at the
higher of net asset value or 95% of the market price on the valuation date. In
the foregoing situation, the Trust will not issue Common Shares under the Plan
below net asset value. If net asset value per Common Share on the valuation date
exceeds the market price per Common Share on that date, or if the Board of
Trustees should declare a dividend or capital gains distribution payable to the
Common Shareholders only in cash, participants in the Plan will be deemed to
have elected to receive Common Shares from the Trust valued at the market price
on that date. Accordingly, in this circumstance, the Plan Agent will, as agent
for the participants, buy the Trust's Common Shares in the open market for the
participants' accounts on or shortly after the payment date. If, before the Plan
Agent has completed its purchases, the market price exceeds the net asset value
per share of the Common Shares, the average per share purchase price paid by the
Plan Agent may exceed the net asset value of the Trust's Common Shares,
resulting in the acquisition of fewer Common Shares than if the dividend or
distribution had been paid in Common Shares issued by the Trust. All
reinvestments are in full and fractional Common Shares and are carried to three
decimal places.
Experience under the Plan may indicate that changes are desirable.
Accordingly, the Trust reserves the right to amend or terminate the Plan as
applied to any dividend or distribution paid subsequent to written notice of the
changes sent to all Common Shareholders of the Trust at least 90 days before the
record date for the dividend or distribution. The Plan also may be amended or
terminated by the Plan Agent by at least 90 days written notice to all Common
Shareholders of the Trust.

Costs of the Plan

The Plan Agent's fees for the handling of the reinvestment of dividends and
distributions will be paid by the Trust. However, each participant will pay a
pro rata share of brokerage commissions incurred with respect to the Plan
Agent's open market purchases in connection with the reinvestment of
dividends and distributions. No other charges will be made to participants
for reinvesting dividends or capital gains distributions, except for certain
brokerage commissions, as described above.

Tax Implications

You will receive tax information annually for your personal records and to help
you prepare your federal income tax return. The automatic reinvestment of divi
dends and capital gains distributions does not relieve you of any income tax
which may be payable on dividends or distributions.

Right to Withdraw

Plan participants may withdraw at any time by calling 1-800-341-2929 or by
writing State Street Bank and Trust Company, P.O. Box 8200, Boston, MA
02266-8200. If you withdraw, you will receive, without charge, a share
certificate issued in your name for all full Common Shares credited to your
account under the Plan and a cash payment will be made for any fractional Common
Share credited to your account under the Plan. You may again elect to
participate in the Plan at any time by calling 1-800-341-2929 or writing to the
Trust at:
One Parkview Plaza, Oakbrook Terrace, IL 60181
Attn: Closed-End Funds

Funds Distributed by Van Kampen American Capital

GLOBAL AND INTERNATIONAL
Global Equity Fund
Global Government Securities Fund
Global Managed Assets Fund
Short-Term Global Income Fund
Strategic Income Fund

EQUITY
Growth
Emerging Growth Fund
Enterprise Fund
Pace Fund
Growth & Income
Balanced Fund
Comstock Fund
Equity Income Fund
Growth and Income Fund
Harbor Fund
Real Estate Securities Fund
Utility Fund

FIXED INCOME
Corporate Bond Fund
Government Securities Fund
High Income Corporate Bond Fund
High Yield Fund
Limited Maturity Government Fund
Prime Rate Income Trust
Reserve Fund
U.S. Government Fund
U.S. Government Trust for Income

TAX-FREE
California Insured Tax Free Fund
Florida Insured Tax Free Income Fund
High Yield Municipal Fund
Insured Tax Free Income Fund
Limited Term Municipal Income Fund
Municipal Income Fund
New Jersey Tax Free Income Fund
New York Tax Free Income Fund
Pennsylvania Tax Free Income Fund
Tax Free High Income Fund
Tax Free Money Fund
Texas Tax Free Income Fund

THE GOVETT FUNDS
Emerging Markets Fund
Global Income Fund
International Equity Fund
Latin America Fund
Pacific Strategy Fund
Smaller Companies Fund

Ask your investment representative for a prospectus containing more complete
information, including sales charges and expenses. Please read it carefully
before you invest or send money. Or call us direct at 1-800-421-5666 weekdays
from 7:00 a.m. to 7:00 p.m. Central time.

Van Kampen Merritt New York Quality Municipal Trust

Officers and Trustees

Don G. Powell*
Chairman and Trustee

Dennis J. McDonnell*
President and Trustee

David C. Arch
Trustee

Rod Dammeyer
Trustee

Howard J Kerr
Trustee

Theodore A. Myers
Trustee

Hugo F. Sonnenschein
Trustee

Wayne W. Whalen*
Trustee

Peter W. Hegel*
Vice President

Ronald A. Nyberg*
Vice President and Secretary

Edward C. Wood, III*
Vice President and Treasurer

Scott E. Martin*
Assistant Secretary

Weston B. Wetherell*
Assistant Secretary

Nicholas Dalmaso*
Assistant Secretary

John L. Sullivan*
Controller

Steven M. Hill*
Assistant Treasurer

Investment Adviser

Van Kampen American Capital Investment Advisory Corp.
One Parkview Plaza
Oakbrook Terrace, Illinois 60181

Custodian and
Transfer Agent

State Street Bank
and Trust Company
225 Franklin Street
P.O. Box 1713
Boston, Massachusetts 02105

Legal Counsel

Skadden, Arps, Slate, Meagher & Flom
333 West Wacker Drive
Chicago, Illinois 60606

Independent Auditors

KPMG Peat Marwick LLP
Peat Marwick Plaza
303 East Wacker Drive
Chicago, Illinois 60601

*"Interested" persons of the Trust, as defined in the
Investment Company Act of 1940.

SM denotes a service mark of
Van Kampen American Capital Distributors, Inc.