<PAGE> PAGE 1
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010 A00AA01 FIRST UNION KEYSTONE, INC
010 C01AA01 BOSTON
010 C02AA01 MA
010 C03AA01 02116
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011 A00AA01 EVERGREEN KEYSTONE DISTRIBUTOR, INC.
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<PAGE> PAGE 2
011 C01AA01 NEW YORK
011 C02AA01 NY
011 C03AA01 10019
012 A00AA01 EVERGREEN KEYSTONE SERVICE COMPANY
012 B00AA01 84-1571
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015 B00AA01 C
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<PAGE> PAGE 3
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<PAGE> PAGE 4
080 C00AA00 35000
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<PAGE> PAGE 5
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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<PAGE> PAGE 8
070 Q020100 N
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<PAGE> PAGE 9
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<PAGE> PAGE 10
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<PAGE> PAGE 11
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<PAGE> PAGE 12
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<PAGE> PAGE 13
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<PAGE> PAGE 14
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SIGNATURE J. KEVIN KENELY
TITLE VP FUND ADMIN
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<SERIES>
<NUMBER> 101
<NAME> KEYSTONE AMERICA MISSOURI TAX FREE FUND CLASS A
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</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
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<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
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</LEGEND>
<SERIES>
<NUMBER> 102
<NAME> KEYSTONE AMERICA MISSOURI TAX FREE FUND CLASS B
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</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<SERIES>
<NUMBER> 103
<NAME> KEYSTONE AMERICA MISSOURI TAX FREE FUND CLASS C
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<PERIOD-END> MAR-31-1997
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<NET-CHANGE-FROM-OPS> (11,037)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (19,225)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4,028
<NUMBER-OF-SHARES-REDEEMED> (10,736)
<SHARES-REINVESTED> 1,352
<NET-CHANGE-IN-ASSETS> (81,284)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (7,773)
<OVERDIST-NET-GAINS-PRIOR> (24,020)
<GROSS-ADVISORY-FEES> (2,390)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (8,610)
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 9.73
<PER-SHARE-NII> 0.13
<PER-SHARE-GAIN-APPREC> (0.20)
<PER-SHARE-DIVIDEND> (0.14)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 9.52
<EXPENSE-RATIO> 1.51
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<SERIES>
<NUMBER> 101
<NAME> FUND NAME CLASS A
<PERIOD-TYPE> 4-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-START> DEC-01-1996
<PERIOD-END> MAR-31-1997
<INVESTMENTS-AT-COST> 28,622,967
<INVESTMENTS-AT-VALUE> 28,626,736
<RECEIVABLES> 880,827
<ASSETS-OTHER> 6,168
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 29,513,731
<PAYABLE-FOR-SECURITIES> 1,487,372
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 191,578
<TOTAL-LIABILITIES> 1,678,950
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 4,251,302
<SHARES-COMMON-STOCK> 444,050
<SHARES-COMMON-PRIOR> 488,904
<ACCUMULATED-NII-CURRENT> 5,262
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (53,911)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (8,322)
<NET-ASSETS> 4,191,597
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 84,705
<OTHER-INCOME> 0
<EXPENSES-NET> (11,209)
<NET-INVESTMENT-INCOME> 73,496
<REALIZED-GAINS-CURRENT> 13,229
<APPREC-INCREASE-CURRENT> (145,321)
<NET-CHANGE-FROM-OPS> (58,596)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (78,732)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 44,393
<NUMBER-OF-SHARES-REDEEMED> (92,045)
<SHARES-REINVESTED> 2,798
<NET-CHANGE-IN-ASSETS> (567,616)
<ACCUMULATED-NII-PRIOR> 8,236
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (66,932)
<GROSS-ADVISORY-FEES> (8,231)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (18,229)
<AVERAGE-NET-ASSETS> 4,549,295
<PER-SHARE-NAV-BEGIN> 9.73
<PER-SHARE-NII> 0.16
<PER-SHARE-GAIN-APPREC> (0.28)
<PER-SHARE-DIVIDEND> (0.17)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 9.44
<EXPENSE-RATIO> 0.77
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<SERIES>
<NUMBER> 102
<NAME> FUND NAME CLASS B
<PERIOD-TYPE> 4-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-START> DEC-01-1996
<PERIOD-END> MAR-31-1997
<INVESTMENTS-AT-COST> 28,622,967
<INVESTMENTS-AT-VALUE> 28,626,736
<RECEIVABLES> 880,827
<ASSETS-OTHER> 6,168
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 29,513,731
<PAYABLE-FOR-SECURITIES> 1,487,372
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 191,578
<TOTAL-LIABILITIES> 1,678,950
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 21,898,437
<SHARES-COMMON-STOCK> 2,319,559
<SHARES-COMMON-PRIOR> 2,344,553
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (103,043)
<ACCUMULATED-NET-GAINS> (40,840)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 38,652
<NET-ASSETS> 21,794,495
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 415,232
<OTHER-INCOME> 0
<EXPENSES-NET> (109,970)
<NET-INVESTMENT-INCOME> 305,262
<REALIZED-GAINS-CURRENT> 67,357
<APPREC-INCREASE-CURRENT> (720,543)
<NET-CHANGE-FROM-OPS> (347,924)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (331,985)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 141,390
<NUMBER-OF-SHARES-REDEEMED> (181,037)
<SHARES-REINVESTED> 14,653
<NET-CHANGE-IN-ASSETS> (924,973)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (87,414)
<OVERDIST-NET-GAINS-PRIOR> (108,043)
<GROSS-ADVISORY-FEES> (40,322)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (144,290)
<AVERAGE-NET-ASSETS> 22,315,738
<PER-SHARE-NAV-BEGIN> 9.69
<PER-SHARE-NII> 0.13
<PER-SHARE-GAIN-APPREC> (0.28)
<PER-SHARE-DIVIDEND> (0.14)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 9.40
<EXPENSE-RATIO> 1.52
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<SERIES>
<NUMBER> 103
<NAME> FUND NAME CLASS C
<PERIOD-TYPE> 4-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-START> DEC-01-1996
<PERIOD-END> MAR-31-1997
<INVESTMENTS-AT-COST> 28,622,967
<INVESTMENTS-AT-VALUE> 28,626,736
<RECEIVABLES> 880,827
<ASSETS-OTHER> 6,168
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 29,513,731
<PAYABLE-FOR-SECURITIES> 1,487,372
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 191,578
<TOTAL-LIABILITIES> 1,678,950
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,872,709
<SHARES-COMMON-STOCK> 197,043
<SHARES-COMMON-PRIOR> 157,192
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (6,644)
<ACCUMULATED-NET-GAINS> 7,740
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (26,561)
<NET-ASSETS> 1,848,689
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 30,990
<OTHER-INCOME> 0
<EXPENSES-NET> (8,210)
<NET-INVESTMENT-INCOME> 22,780
<REALIZED-GAINS-CURRENT> 5,439
<APPREC-INCREASE-CURRENT> (51,257)
<NET-CHANGE-FROM-OPS> (23,038)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (24,855)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 53,270
<NUMBER-OF-SHARES-REDEEMED> (14,740)
<SHARES-REINVESTED> 1,321
<NET-CHANGE-IN-ASSETS> 327,675
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 2,272
<OVERDISTRIB-NII-PRIOR> (5,397)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (3,002)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (10,755)
<AVERAGE-NET-ASSETS> 1,665,896
<PER-SHARE-NAV-BEGIN> 9.68
<PER-SHARE-NII> 0.14
<PER-SHARE-GAIN-APPREC> (0.30)
<PER-SHARE-DIVIDEND> (0.14)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 9.38
<EXPENSE-RATIO> 1.52
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
The Trustees and Shareholders
Keystone State Tax Free Fund - Series II
Keystone State Tax Free Fund
Evergreen Tax Free Trust
In planning and performing our audit of the financial statements of the
Evergreen Keystone State Tax Free Funds (including Keystone California Tax Free
Fund, Keystone Florida Tax Free Fund, Keystone Missouri Tax Free Fund, Keystone
Massachusetts Tax Free Fund, Keystone New York Tax Free Fund, Keystone
Pennsylvania Tax Free Fund and Evergreen New Jersey Tax Free Income Fund) for
the year or period ended March 31, 1997, we considered its internal control
structure, including procedures for safeguarding securities, in order to
determine our auditing procedures for the purpose of expressing our opinion on
the financial statements and to comply with the requirements of Form N-SAR, not
to provide assurance on the internal control structure.
The management of the Evergreen Keystone State Tax Free Funds is responsible for
establishing and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of internal control structure policies and
procedures. Two of the objectives of an internal control structure are to
provide management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition and that
transactions are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may occur and not be detected. Also, projection of any evaluation
of the structure to future periods is subject to the risks that it may become
inadequate because of changes in conditions or that the effectiveness of the
design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of the specific internal control structure elements does not reduce to
a relatively low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements being audited may
occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. However, we noted no matters
involving the internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined above as of
May 2, 1997.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
KPMG Peat Marwick LLP
May 2, 1997
