2000 Semiannual Report

Centennial Tax Exempt Trust

December 31, 2000

Dear Shareholder:

We are pleased to present this semiannual report for Centennial Tax Exempt Trust. For the six-month reporting period that ended December 31, 2000, the Trust provided a 3.60% compounded annual yield. Without the effects of compounding, the equivalent yield was 3.54%. For investors in the 36% federal tax bracket, this is equivalent to a taxable yield of 5.63% with compounding and 5.53% without compounding. As of December 31, 2000, the seven-day annualized yields, with and without compounding, were 3.84% and 3.77%, respectively.¹

Interest rates were driven higher by a series of short-term interest rate hikes initiated by the Federal Reserve Board (“the Fed”) in late 1999 and early 2000. The Fed raised rates a total of six times during that period in an effort to avert inflation and slow the overheated U.S. economy, culminating in an aggressive half-point increase in mid-May 2000. Although the last of these rate hikes occurred before the reporting period began, expectations of further raises maintained upward pressure on bond yields for much of the period.

Soon after the start of the reporting period, however, signs began to emerge that the Federal Reserve Board’s interest rate hikes were having the desired effect of slowing the economy. Softer retail sales, fewer housing starts and tame inflation statistics contributed to a sense among investors that growth was moderating. In fact, it was later revealed that the economy grew at a relatively modest 2.4% in the third quarter, which is within the range that most economists consider low enough to prevent a reacceleration of inflation. As a result, the Federal Reserve Board held monetary policy steady during the six-month reporting period, leaving interest rates unchanged at their meetings in June, August, October, November and December.

One significant effect of the apparent economic slowdown was a severe decline in most growth-oriented areas of the stock market, which may have created a “reverse wealth effect” in which consumers curtailed spending because of the belief that they had become less affluent. In turn, lower levels of consumer spending created an additional drag on the economy.

In this environment, we began the reporting period with the Trust’s average maturity—a measure of sensitivity to changing interest rates—positioned toward the short end of its range. This posture was designed to give us the flexibility we needed to capture higher yields as they became available in a rising interest rate environment while maintaining a stable $1 share price. Of course, while we strive to maintain a $1 share price, there is no guarantee that this objective will be achieved.

An investment in the Trust is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Trust may seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Trust.

1. Compounded yields assume reinvestment of dividends. Past performance is not indicative of future results.

When it later became apparent that the economy was slowing and that money market yields were more likely to decline than rise, we decided to extend the Trust’s average maturity in order to lock in prevailing yields for as long as practical. Accordingly, we reduced our holdings of variable rate demand notes (VRDNs), which are tax-exempt securities with yields that adjust on a daily or weekly basis. We redeployed those assets to longer term fixed rate securities, including municipal notes, tax-exempt commercial paper (high quality, short term securities issued by banks or corporations) and put bonds (securities that permit redemption for full face value at predetermined intervals). While some of these securities may be insured or guaranteed by their issuers, the Trust itself is neither guaranteed nor insured.

Although this strategy caused us to sacrifice some yield initially, we believe that it positions us to capture higher yields over the next several months. In fact, when short term yields declined in December in response to various economic, supply-and-demand and year-end factors, we were able to maintain yields at a relatively high level.

Looking forward, we believe that tax-exempt money market yields remain more likely to fall than climb. With the economy slowing demonstrably, the Federal Reserve Board recently reversed the direction of monetary policy and reduced interest rates. Therefore, we have continued to maintain a longer-than-average maturity stance for the Trust. In addition, we have intensified our focus on the credit quality of the Trust’s holdings. That’s because potential fiscal problems become more likely in a slower economic environment. We are also closely monitoring ratings of utilities companies. In our view, this asset mix positions us appropriately to seek to produce a competitive tax-exempt yield at the same time that we maintain liquidity and preserve shareholders’ capital.

Sincerely,
	James C. Swain
Chairman
Centennial Tax Exempt Trust
	Bridget A. Macaskill
President
Centennial Tax Exempt Trust
January 23, 2001

2

Statement of Investments December 31, 2000 (Unaudited)
Centennial Tax Exempt Trust

	Principal		Value
	Amount		See Note 1
Short-Term Tax-Exempt Obligations—101.8%
Alaska—0.4%
AK HFC RB, State Capital Project, Series B-1, 4.35%, 12/1/01	$	4,445,000	$	4,446,908
AK IDV & Export Authority RRB, Safeway, Inc. Projects, 4.625%, 6/1/01(1)		3,210,000		3,210,000
				7,656,908
Arizona—1.5%
Casa Grande, AZ IDAU RRB, Mayville Metal, 5%(2)		4,000,000		4,000,000
Phoenix, AZ IDAU MH RRB, Paradise Lakes Apts. Project, Series 1995, 5%(2)		22,500,000		22,500,000
				26,500,000
California—2.5%
CA PCFAU SWD RR RB, Shell Martinez Refining, Series A, 3.70%(2)		1,900,000		1,900,000
CA School Cash Reserve Program Authority Nts., Series A, 5.25%, 7/3/01(1)		8,500,000		8,540,017
Fremont, CA MH RB, Treetops Apts., Series A, 4.10%(2)		3,000,000		3,000,000
Huntington Park, CA RA MH RB, Casa Rita Apts., Series A, 4.13%(2)		1,100,000		1,100,000
Los Angeles Cnty., CA TAN & RAN, Series A, 5%, 6/29/01		750,000		753,001
Los Angeles Cnty., CA Transition Community Sales Tax RB, Prerefunded,    Series A, 6.90%, 7/1/01(1)		4,000,000		4,141,786
Los Angeles, CA Airport RB, Series SG61, 4.41%(2)		1,055,000		1,055,000
Los Angeles, CA Wastewater System RB, ABN AMRO Munitops Certificates Trust,    Series 1998-25, 4.34%(2)		2,000,000		2,000,000
Modesto, CA Irrigation District FAU RB, Series SG66, 4.34%(2)		500,000		500,000
Oakland/Alameda Cntys., CA Coliseum Authority Lease RRB, Coliseum Project,    Series C-1, 4.30%(2)		6,400,000		6,400,000
Oceanside, CA MH RRB, Lakeridge Apts. Project, 4.60%(2)		4,000,000		4,000,000
Orange Cnty., CA FAU Teeter Plan RB, Series B, AMBAC Insured, 4.10%(2)		1,000,000		1,000,000
Orange Cnty., CA FAU Teeter Plan RB, Series C, AMBAC Insured, 4.10%(2)		1,500,000		1,500,000
Paramount City, CA HAU MH RRB, Century Place Apts. Project, Series A, 4.10%(2)		5,100,000		5,100,000
San Bernardino Cnty., CA, MH RB, Somerset Apts., Series A, 3.95%(2)		2,495,000		2,495,000
				43,484,804

3

Statement of Investments December 31, 2000 (Unaudited) (Continued)
Centennial Tax Exempt Trust

	Principal		Value
	Amount		See Note 1
Colorado—1.1%
CO General Fund TAN & RAN, Series B, 5%, 6/27/01	$	10,000,000	$	10,032,956
Denver City & Cnty., CO Housing RB, KY Circle Village Project, 4.90%(2)		4,300,000		4,300,000
Englewood, CO IDV RRB, Safeway, Inc. Projects, 4.625%, 6/1/01(1)		1,515,000		1,515,000
Fraser, CO IDV RRB, Safeway, Inc. Projects, 4.625%, 6/1/01(1)		760,000		760,000
Idaho Springs, CO IDV RRB, Safeway, Inc. Projects, 4.625%, 6/1/01(1)		1,645,000		1,645,000
				18,252,956
Florida—6.0%
Collier Cnty., FL IDAU RB, Gulf Coast American Blind, Series A, 5.10%(2)		3,000,000		3,000,000
Dade Cnty., FL WSS RB, FGIC Insured, 4.94%(2)		9,900,000		9,900,000
FL BOE Capital Outlay GOUN, Series 286, 4.92%(2)		2,600,000		2,600,000
FL MPA RB, 4.15%, 1/17/01(1)		17,971,000		17,971,000
FL TUAU RB, Series A, FGIC Insured, 4.94%(2)		14,850,000		14,850,000
Hillsborough Cnty., FL IDAU PC COP, Tampa Electric Co. Project, MBIA    Insured, 4.94%(2)		17,795,000		17,795,000
Hillsborough Cnty., FL IDAU PC RB, Tampa Electric Co. Project, 4.94%(2)		17,795,000		17,795,000
Jacksonville, FL PC RRB, Florida Power & Light Co. Project, 4.15%, 1/16/01(1)		11,950,000		11,950,000
Lee Cnty., FL Airport & Marina ABN Amro Munitops Certificates, Series 2000-3, FSA    Insured, 5%(2)		4,890,000		4,890,000
Putnam Cnty., FL PC DAU RRB, Seminole Electric Co-op, Series D, 4.125%, 6/15/01(1)		2,000,000		2,000,000
				102,751,000
Georgia—5.6%
Burke Cnty., GA DAU PC RB, Oglethorpe Power Corp., AMBAC Insured,    4.20%, 1/16/01(1)		5,000,000		5,000,000
Burke Cnty., GA DAU PC RB, Oglethorpe Power Corp., AMBAC Insured,    4.20%, 1/16/01(1)		18,000,000		18,000,000
Burke Cnty., GA DAU PC RB, Oglethorpe Power Corp., AMBAC Insured,    4.25%, 1/16/01(1)		17,000,000		17,000,000
Cobb Cnty., GA HAU MH RRB, Terrell Mill Project, 4.95%(2)(3)		11,200,000		11,200,000
Fulton Cnty., GA DAU RB, Georgia Tech Athletic Assn., Inc., 5%(2)		2,900,000		2,900,000
Fulton Cnty., GA DAU RB, Lovett School Project, 5%(2)		3,000,000		3,000,000
Fulton Cnty., GA DAU RB, Robert W. Woodruff Arts Project, 5%(2)		2,000,000		2,000,000
GA GOB, Series 1995B, 4.94%(2)		11,880,000		11,880,000
GA GOUN, Series B, 6.25%, 4/1/01		1,750,000		1,758,756
Roswell, GA HAU MH RRB, Oxford Project, 5.75%(2)		23,610,000		23,610,000
				96,348,756

4

Statement of Investments December 31, 2000 (Unaudited) (Continued)
Centennial Tax Exempt Trust

	Principal		Value
	Amount		See Note 1
Idaho—0.3%
Custer Cnty., ID PC RB, Amoco Standard Oil of Indiana, 4.35%, 4/1/01(1)	$	5,000,000	$	5,000,000
Illinois—5.8%
Chicago, IL GOUN ABN AMRO Munitops Certificates Trust, Series 1998-3, 4.97%(2)(3)		8,735,000		8,735,000
Chicago, IL RB, Lakefront Millennium Parking Facility, 4.31%(2)		22,495,000		22,495,000
Elk Grove Village, IL IDV RB, La Quinta Motor Inns, Inc., 4.40%(2)		1,000,000		1,000,000
IL DAU RB, St. Vincent de Paul Project, Series A, 4.35%(2)		15,000,000		15,000,000
IL Education FA RB, 4.20%, 1/18/01(1)		20,000,000		20,000,000
IL Education FA RB, 4.10%, 5/2/01(1)		8,385,000		8,385,000
IL HFAU RB, Lake Forest Hospital Project, 4.75%(2)		8,940,000		8,940,000
IL HFAU RRB, Advocate Health Care, Series B, 4.90%(2)		12,500,000		12,500,000
IL Sales Tax RB, Prerefunded, Series N, 6.90%, 6/15/01(1)		1,300,000		1,340,777
IL Sales Tax RB, Prerefunded, Series N, 6.90%, 6/15/01(1)		1,000,000		1,031,367
				99,427,144
Indiana—4.2%
Dyer, IN HCF RRB, Regency Place, Series A-1, 5.13%(2)		3,125,000		3,125,000
Fort Wayne, IN HCF RRB, Health Quest, Series X-A, 5.13%(2)		2,775,000		2,775,000
IN Environmental Development FAU RRB, USX Corp. Project, 4.35%, 6/7/01(1)		10,000,000		10,000,000
IN MPA RB, Power Supply System, MBIA Insured, 4.94%(2)		13,600,000		13,600,000
Indianapolis, IN HCF RRB, Health Quest, Series A, 5.13%(2)		3,695,000		3,695,000
Indianapolis, IN Local Public Improvement Board Bank Nts., Series E, 4.75%, 7/9/01		5,100,000		5,112,852
Indianapolis, IN Local Public Improvement Board Bank Nts., Series D, 5%, 1/8/01		5,100,000		5,100,668
Lawrence/Fort Harrison, IN Reuse Authority Tax Increment RB, Harrison Military Base,    4.24%(2)		3,345,000		3,345,000
Marion Cnty., IN Convention & Recreational FA Excise Tax RB, Lease Rental, Series B,    AMBAC Insured, 7%, 6/1/01(1)		12,950,000		13,347,090
Marion Cnty., IN HA Hospital Facility RB, Indianapolis Osteopathic, 5%(2)		2,810,000		2,810,000
Merrillville, IN HCF RRB, Southlake, Series A-1, 5.12%(2)		3,625,000		3,625,000
Monroe Cnty., IN HA RRB, MBIA Insured, 4.295%(2)		3,700,000		3,700,000
South Bend, IN HCF RRB, Fountainview, Series A-1, 5.13%(2)		2,965,000		2,965,000
				73,200,610
Kansas—0.3%
Manhattan, KS Industrial RRB, Parker Hannifin, Inc. Project, 4.95%(2)		6,000,000		6,000,000

5

Statement of Investments December 31, 2000 (Unaudited) (Continued)
Centennial Tax Exempt Trust

	Principal		Value
	Amount		See Note 1
Kentucky—5.1%
KY Asset/Liability Commission General Fund TAN & RAN, Series A, 4.10%, 1/25/01(1)	$	15,000,000	$	15,000,000
KY Asset/Liability Commission General Fund TAN & RAN, Series A, 5%, 6/27/01		28,500,000		28,589,763
KY Asset/Liability Commission General Fund TAN & RAN, Series A, 5.25%, 6/27/01(1)		40,000,000		40,131,739
KY EDFAU RRB, Baptist Convalescent Center, 4.80%(2)		4,870,000		4,870,000
				88,591,502
Louisiana—3.3%
LA GOUN, Series A, FGIC Insured, 5.50%, 11/15/01		10,030,000		10,129,483
LA PFFAU RB, Willis-Knighton Medical Center Project, 2.80%(2)		20,000,000		20,000,000
New Orleans, LA IDV Board MH RB, Orleans LLC Project, Series 3700, 5.03%(2)		5,000,000		5,000,000
St. James Parish, LA PC RRB, Texaco Project, Series A, 4.25%, 2/8/01(1)		22,530,000		22,530,000
				57,659,483
Maryland—0.6%
Anne Arundel Cnty., MD ED RB, West Capitol, Series A, 5%(2)		6,000,000		6,000,000
Hyattsville, MD IDV RRB, Safeway, Inc. Projects, 4.625%, 6/1/01(1)		1,800,000		1,800,000
MD Health & HEFAU RB, University of Maryland Pooled Loan Program, Series B, 4.55%(2)		810,000		810,000
Prince Georges Cnty., MD Refunding GOB, Consolidated Public Improvements, Series A,    MBIA Insured, 5.30%, 3/1/01		1,000,000		1,002,084
				9,612,084
Massachusetts—0.2%
MA Refunding GOB, Prerefunded, Series B, 6.50%, 8/1/01(1)		2,260,000		2,334,816
Worcester, MA GOB, MBIA Insured, 5.25%, 8/1/01		1,250,000		1,257,029
				3,591,845
Michigan—0.8%
MI Job DAU RB, East Lansing Residence Associates Project, 5%(2)		1,900,000		1,900,000
Rochester, MI Community SDI GOUN, Series 289, 4.94%(2)		3,745,000		3,745,000
St. Clair Cnty., MI ED RRB, Series 282, AMBAC Insured, 4.94%(2)		8,000,000		8,000,000
				13,645,000

6

Statement of Investments December 31, 2000 (Unaudited) (Continued)
Centennial Tax Exempt Trust

	Principal		Value
	Amount		See Note 1
Minnesota—2.7%
Minneapolis, MN CD RRB, Minnehaha/Lake Partners Project, 5%(2)	$	2,750,000	$	2,750,000
MN GOB, 4.31%(2)		16,010,000		16,010,000
MN GOUN, 5%, 8/1/01		1,000,000		1,004,925
MN SDI Tax & Aid Anticipation Borrowing Programs COP, Series B, 4.75%, 2/16/01		21,330,000		21,337,966
New Ulm, MN Hospital Facilities RB, Health Center Systems, 5%(2)		2,200,000		2,200,000
North Suburban Hospital District, MN RB, Anoka & Ramsey Cntys Hospital Health    Center, 5%(2)		3,200,000		3,200,000
				46,502,891
Missouri—1.4%
MO Educational & HFAU RB, Washington University, Series C, 4.80%(2)		16,600,000		16,600,000
MO HEAU Student Loan RRB, Series B, MBIA Insured, 5%(2)		7,600,000		7,600,000
				24,200,000
Montana—0.1%
Great Falls, MT IDV RRB, Safeway, Inc. Projects, 4.625%, 6/1/01(1)		1,635,000		1,635,000
Nevada—1.2%
NV Municipal Securities Trust Receipts, Series SG 114, 4.94%(2)		20,350,000		20,350,000
New Hampshire—1.5%
NH Business FAU PC RRB, Series 1990, 4.40%, 1/30/01(1)		25,000,000		25,000,000
New Jersey—6.6%
NJ TAN & RAN, 4.25%, 1/2/01(1)		65,000,000		65,000,000
NJ TUAU RRB ABN AMRO Munitops Certificates Trust, Series 2000-6, MBIA Insured,    4.30%, 3/1/01(1)		48,420,000		48,420,000
				113,420,000
New Mexico—4.7%
NM TAN & RAN, Series A, 5%, 6/29/01		80,000,000		80,327,314
New York—5.7%
Greystone Tax Exempt Certificates RB, Trust 1998-1, Sr. Certificate Beneficial    Ownership, 5.08%(2)		27,900,000		27,900,000
Hempstead, NY IDA RRB, Trigen-Nassau Energy, 4.85%(2)		1,000,000		1,000,000
NYC Health & Hospital Corp. RB, Health Systems, Series E, 4.45%(2)		1,000,000		1,000,000

7

Statement of Investments December 31, 2000 (Unaudited) (Continued)
Centennial Tax Exempt Trust

	Principal		Value
	Amount		See Note 1
New York (Continued)
NYC MWFAU RB, WSS Project, Series C, 4.95%(2)	$	2,400,000	$	2,400,000
NYC RAN, Series A, 5%, 4/12/01		3,830,000		3,838,033
NYC Water FAU WSS RB, Series SGB 26, MBIA Insured, 4.86%(2)		2,200,000		2,200,000
NYS ERDAUEF RRB, Con Edison Co., Subseries A-3, 4.80%(2)		1,000,000		1,000,000
NYS GOUN, Series A, 4.40%, 2/8/01(1)		1,700,000		1,700,000
NYS HFA RB, Victory Housing, Series A, 4.65%(2)		5,000,000		5,000,000
NYS LGAC RB, Series SG100, MBIA Insured, 4.84%(2)		10,420,000		10,420,000
NYS LGAC RB, Series SG99, MBIA Insured, 4.84%(2)		27,595,000		27,595,000
NYS MAG RB, Series CMC1, 4.90%(2)		2,575,000		2,575,000
NYS MCFFA RB, Pooled Equipment Loan Program I-A, 4.60%(2)		470,000		470,000
NYS TBTAU RB, Series T, 4.45%, 1/24/01(1)		11,400,000		11,400,000
				98,498,033
Ohio—1.5%
Gallia Cnty., OH IDV Mtg. RRB, Jackson Pike Assn., 4.60%, 6/15/01(1)		3,175,000		3,175,000
OH Building Authority RB, Adult Correctional Building, 4.66%(2)		7,920,000		7,920,000
Scioto Cnty., OH HCF RB, Hill View Retirement Center, 4.60%, 6/1/01(1)		4,115,000		4,115,000
University Cincinnati, OH COP, Series 232, MBIA Insured, 4.92%(2)		10,575,000		10,575,000
				25,785,000
Pennsylvania—3.5%
Cumberland Cnty., PA Municipal Authority College RRB, Dickinson College,    Series B, AMBAC Insured, 5%, 11/1/01(1)		2,700,000		2,714,145
Monroe Cnty., PA HA RB, Pocono Medical Center, Series C, 5%(2)		2,835,000		2,835,000
PA GOUN, 4.94%(2)		17,800,000		17,800,000
PA HEFAU RB, Assn. of Independent Colleges & Universities, Series G1, 5%, 11/1/01(1)		3,500,000		3,518,194
PA HEFAU RB, Assn. of Independent Colleges & Universities, Series G2, 4.375%, 11/1/01(1)		5,500,000		5,500,000
PA HEFAU RB, Assn. of Independent Colleges & Universities, Series G3, 5%, 11/1/01(1)		1,300,000		1,306,495
PA HEFAU RB, Assn. of Independent Colleges & Universities, Series G4, 5%, 11/1/01(1)		1,000,000		1,004,996
PA HEFAU RB, CICU Financing Program, Series B6, 4.40%, 11/1/01(1)		4,600,000		4,600,000
Philadelphia, PA Gas Works RRB, Unrefunded Balance, AMBAC Insured, 4.15%, 1/16/01(1)		19,000,000		19,000,000
Philadelphia, PA Municipal Authority RB, Justice Lease, Prerefunded, Series B, FGIC Insured,    7.125%, 11/15/01		1,500,000		1,565,677
				59,844,507

8

Statement of Investments December 31, 2000 (Unaudited) (Continued)
Centennial Tax Exempt Trust

	Principal		Value
	Amount		See Note 1
South Carolina—2.1%
SC POAU RB ABN AMRO Munitops Certificates Trust, Series 1998-7, 5%(2)	$	7,325,000	$	7,325,000
SC Public Service Authority RB, Series 182, MBIA Insured, 4.94%(2)		14,850,000		14,850,000
York Cnty., SC PC RRB, Duke Power Co. Project, 4.30%, 2/21/01(1)		14,750,000		14,750,000
				36,925,000
South Dakota—1.2%
SD Health & Educational Facilities RB, Sioux Valley Hospital Issue, 5%(2)		20,200,000		20,200,000
Tennessee—2.6%
TN GOB, 4.30%, 2/22/01(1)		20,000,000		20,000,000
TN GOB, 4.30%, 3/7/01(1)		25,000,000		25,000,000
				45,000,000
Texas—24.1%
Austin, TX Travis & Williamson Cntys., Utility System RB, 4.25%, 2/21/01(1)		50,000,000		50,000,000
Bexar, TX Municipal Water District RB, 4.10%, 1/25/01(1)		9,000,000		9,000,000
Brownsville, TX Utility System RB, 4.35%, 3/16/01(1)		33,700,000		33,700,000
De Soto, TX IDAU RRB, National Service Industries, Inc. Project, 4.95%(2)		7,150,000		7,150,000
Greater East TX HEAU RRB, Student Loans, Series A, 4.50%, 5/1/01(1)		9,000,000		9,000,000
Gulf Coast, TX IDAU Marine Terminal RB, Amoco Oil Project, 4.35%, 6/1/01(1)		4,000,000		4,000,000
Harris Cnty., TX Criminal Justice Center RB, Series SG96, FGIC Insured,    4.75%, 2/28/01		10,000,000		10,007,933
Harris Cnty., TX Criminal Justice Center RB, Series SG96, FGIC Insured, 4.94%(2)		7,475,000		7,475,000
Harris Cnty., TX Toll Road COP, 4.94%(2)		9,900,000		9,900,000
Houston, TX GOB, Series A, 4.25%, 1/18/01(1)		15,000,000		15,000,000
Houston, TX GOB, Series A, 4.35%, 3/8/01(1)		8,000,000		8,000,000
Houston, TX GOB, Series A, 4.10%, 5/2/01(1)		13,900,000		13,900,000
Houston, TX GOB, Series B, 4.35%, 3/15/01(1)		39,800,000		39,800,000
Houston, TX GOB, Series C, 4.25%, 1/11/01(1)		6,000,000		6,000,000
Houston, TX WSS RB, Series SG120, 4.94%(2)		37,600,000		37,600,000
San Antonio, TX Electric & Gas RRB, Series G-101, 4.94%(2)		20,200,000		20,200,000
San Antonio, TX Electric & Gas RRB, Series SG105, 4.94%(2)		20,000,000		20,000,000
San Antonio, TX Water RB, 4.94%(2)		4,000,000		4,000,000
Tarrant Cnty., TX Water Control & Improvement District No. 001 RRB, AMBAC    Insured, 5.75%, 3/1/01(1)		8,500,000		8,519,301
TX TAN & RAN, 5.25%, 8/31/01		86,000,000		86,534,133
TX TUAU RB, Dallas Northtollway, Series SG70, 4.94%(2)		15,325,000		15,325,000
				415,111,367

9

Statement of Investments December 31, 2000 (Unaudited) (Continued)
Centennial Tax Exempt Trust

	Principal			Value
	Amount			See Note 1
Utah—0.3%
Tremonton City, UT IDV RRB, Safeway, Inc. Project, 4.625%, 6/1/01(1)	$	445,000		$	445,000
Utah Cnty., UT Environmental Improvement RRB, USX Corp. Projects, 4.25%, 2/8/01		5,000,000			5,000,000
					5,445,000
Virginia—2.7%
Peninsula Ports Authority, VA Coal Terminal RRB, Dominion Terminal Project-A,    4.30%, 1/23/01(1)		12,135,000			12,135,000
Pulaski Cnty., VA IDAU RRB, Pulaski Furniture Project, 5.05%(2)		8,900,000			8,900,000
Stafford, VA IDV RRB, Safeway, Inc. Projects, 4.625%, 6/1/01(1)		1,025,000			1,025,000
Washington D.C. Airport Authority RB, 4.35%, 2/22/01(1)		24,000,000			24,000,000
					46,060,000
Washington—1.2%
King City, WA SDI No. 403 Refunding GOUN, MBIA Insured, 4%, 6/1/01		2,805,000			2,805,000
Kitsap Cnty., WA SDI No. 401 GOUN, Series 252, MBIA Insured, 4.97%(2)		3,460,000			3,460,000
WA GORB, Series 1995C, 4.94%(2)		13,710,000			13,710,000
					19,975,000
West Virginia—0.5%
Cabell Cnty., WV BOE GOUN, MBIA-IBC Insured, 6%, 5/1/01		2,110,000			2,123,497
WV Road GOB ABN AMRO Munitops Certificates Trust, Series 1999-4,    4.40%, 5/16/01(1)		6,000,000			6,000,000
					8,123,497
Wisconsin—0.2%
Milwaukee, WI GOUN, Corporate Purpose, Series K, 4.50%, 6/15/01		3,135,000			3,139,971
Wyoming—0.3%
Evanston, WY IDV RRB, Safeway, Inc. Projects, 4.625%, 6/1/01(1)		3,700,000			3,700,000
Lincoln Cnty., WY PC RB, Exxon Project, Series C, 4.85%(2)		1,800,000			1,800,000
					5,500,000
Total Investments, at Value		101.8	%		1,752,764,672
Liabilities in Excess of Other Assets		(1.8	)		(30,304,057	)
Net Assets		100.0	%	$	1,722,460,615

10

Statement of Investments December 31, 2000 (Unaudited) (Continued)
Centennial Tax Exempt Trust

To simplify the listings of securities, abbreviations are used per the table below:

BOE—Board of Education CD—Commercial Development COP—Certificates of Participation DAU—Development Authority ED—Economic Development EDFAU—Economic Development Finance Authority ERDAUEF—Energy Research & Development                        Authority Electric Facilities ERDAUGF—Energy Research & Development Authority                         Gas Facilities FA—Facilities Authority FAU—Finance Authority GOB—General Obligation Bonds GORB—General Obligation Refunding Bonds GOUN—General Obligation Unlimited Nts. HA—Hospital Authority HAU—Housing Authority HCF—Health Care Facilities HEAU—Higher Education Authority HEFAU—Higher Educational Facilities Authority HFA—Housing Finance Agency HFAU—Health Facilities Authority HFC—Housing Finance Corp. IDV—Industrial Development IDA—Industrial Development Agency

IDAU—Industrial Development Authority LGAC—Local Government Assistance Corp. MAG—Mtg. Agency MCFFA—Medical Care Facilities Finance Agency MH—Multifamily Housing MPA—Municipal Power Agency MWFAU—Municipal Water Finance Authority NYC—New York City NYS—New York State PC—Pollution Control PCFAU—Pollution Control Finance Authority PFFAU—Public Facilities Finance Authority POAU—Port Authority RA—Redevelopment Agency RAN—Revenue Anticipation Nts. RB—Revenue Bonds RDAU—Research & Development Authority RR—Resource Recovery RRB—Revenue Refunding Bonds SDI—School District SWD—Solid Waste Disposal TAN—Tax Anticipation Nts. TBTAU—Triborough Bridge & Tunnel Authority TUAU—Turnpike Authority WSS—Water & Sewer System

1.	Put obligation redeemable at full face value on the date reported.
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, 2000. This instrument may also have a demand feature which allows, on up to 30 days’ notice, the recovery of principal at any time, or at specified intervals not exceeding one year.
3.	Represents securities sold under Rule 144A, which are exempt from registration under the Securities Act of 1933, as amended. These securities have been determined to be liquid under guidelines established by the Board of Trustees. These securities amount to $19,935,000 or 1.16% of the Trust’s net assets as of December 31, 2000.

See accompanying Notes to Financial Statements.

11

Statement of Assets and Liabilities December 31, 2000 (Unaudited)
Centennial Tax Exempt Trust

ASSETS
Investments, at value—see accompanying statement	$	1,752,764,672
Cash		1,204,396
Receivables and other assets:
Shares of beneficial interest sold		47,465,106
Interest		18,771,452
Total assets		1,820,205,626
LIABILITIES
Payables and other liabilities:
Investments purchased		74,078,784
Shares of beneficial interest redeemed		22,743,694
Dividends		322,096
Transfer and shareholder servicing agent fees		276,379
Service plan fees		96,694
Trustees’ compensation		2,097
Other		225,267
Total liabilities		97,745,011
NET ASSETS	$	1,722,460,615
COMPOSITION OF NET ASSETS
Paid-in capital	$	1,723,045,046
Accumulated net realized loss on investment transactions		(584,431	)
NET ASSETS—applicable to 1,723,061,014 shares of beneficial interest outstanding	$	1,722,460,615
NET ASSET VALUE, REDEMPTION PRICE PER SHARE AND OFFERING
PRICE PER SHARE	$	1.00

See accompanying Notes to Financial Statements.

12

Statement of Operations For the Six Months Ended December 31, 2000 (Unaudited)
Centennial Tax Exempt Trust

	INVESTMENT INCOME—Interest			$	37,151,727
	EXPENSES
	Management fees				3,689,932
	Service plan fees				1,719,910
	Transfer and shareholder servicing agent fees				406,483
	Registration and filing fees				174,034
	Shareholder reports				129,145
	Custodian fees and expenses				73,179
	Trustees’ compensation				9,988
	Other				277,148
		Total expenses			6,479,819
			Less expenses paid indirectly		(66,757	)
		Net expenses			6,413,062
NET INVESTMENT INCOME					30,738,665
NET REALIZED GAIN ON INVESTMENTS					55,751
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS				$	30,794,416

Statements of Changes in Net Assets

	Six Months Ended
	December 31, 2000			Year Ended
	(Unaudited)			June 30, 2000
OPERATIONS
Net investment income	$	30,738,665		$	50,998,995
Net realized gain (loss)		55,751			(159,972	)
Net increase in net assets resulting from operations		30,794,416			50,839,023
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS		(30,738,665	)		(50,998,995	)
BENEFICIAL INTEREST TRANSACTIONS
Net increase (decrease) in net assets resulting from beneficial interest transactions		30,855,224			(57,771,643	)
NET ASSETS
Total increase (decrease)		30,910,975			(57,931,615	)
Beginning of period		1,691,549,640			1,749,481,255
End of period	$	1,722,460,615		$	1,691,549,640

See accompanying Notes to Financial Statements.

13

Financial Highlights
Centennial Tax Exempt Trust

	Six Months
	Ended
	December 31,
	(Unaudited)			Year Ended June 30,
	2000			2000			1999			1998			1997			1996
PER SHARE OPERATING DATA
Net asset value, beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Income from investment operations—    net investment income and    net realized gain		.02			.03			.03			.03			03			.03
Dividends and/or distributions to shareholders		(.02	)		(.03	)		(.03	)		(.03	)		(.03	)		(.03	)
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
TOTAL RETURN(1)		1.79	%		3.01	%		2.61	%		3.12	%		3.01	%		3.16	%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions)	$	1,722		$	1,692		$	1,749		$	1,829		$	1,649		$	1,426
Average net assets (in millions)	$	1,722		$	1,737		$	1,896		$	1,832		$	1,591		$	1,473
Ratios to average net assets:(2) Net investment income		3.55	%		2.94	%		2.58	%		3.07	%		2.95	%		3.12	%
Expenses		0.75	%		0.72	%		0.69	%		0.69	%(3)		0.72	%(3)		0.72	%(3)

1.	Assumes a $1,000 hypothetical initial investment on the business day before the first day of the fiscal period, with all dividends 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. Total returns reflect changes in net investment income only. Total returns are not annualized for periods of less than one full year.
2.	Annualized for periods of less than one full year.
3.	Expense ratio has not been grossed up to reflect the effect of expenses paid indirectly.

See accompanying Notes to Financial Statements

14

Notes to Financial Statements (Unaudited)
Centennial Tax Exempt Trust

1. Significant Accounting Policies

Centennial Tax Exempt Trust (the Trust) is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Trust’s investment objective is to seek the maximum short-term interest income exempt from federal income taxes that is consistent with low capital risk and the maintenance of liquidity. The Trust’s investment advisor is Centennial Asset Management Corporation (the Manager), a subsidiary of OppenheimerFunds, Inc. (OFI). The following is a summary of significant accounting policies consistently followed by the Trust.

Securities Valuation. Portfolio securities are valued on the basis of amortized cost, which approximates market value.

Federal Taxes. The Trust 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 to shareholders. Therefore, no federal income or excise tax provision is required.

As of June 30, 2000, the Trust had available for federal income tax purposes unused capital loss carryovers as follows:

Expiring
2006	$	33,976
2007		432,567
2008		88,401

Dividends and Distributions to Shareholders. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date.

Expense Offset Arrangements. Expenses paid indirectly represent a reduction of custodian fees for earnings on cash balances maintained by the Trust.

Other. Investment transactions are accounted for as of trade date. Realized gains and losses on investments are determined on an identified cost basis, which is the same basis used for federal income tax purposes.

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.

15

Notes to Financial Statements (Unaudited) (Continued)
Centennial Tax Exempt Trust

2. Shares of Beneficial Interest

The Trust has authorized an unlimited number of no par value shares of beneficial interest. Transactions in shares of beneficial interest were as follows:

	Six Months Ended December 31, 2000						Year Ended June 30, 2000
	Shares			Amount			Shares			Amount
Sold		2,498,605,088		$	2,498,605,088			5,849,279,745		$	5,849,279,745
Dividends and/or         distributions reinvested		32,340,729			32,340,729			49,019,366			49,019,366
Redeemed		(2,500,090,593	)		(2,500,090,593	)		(5,956,070,754	)		(5,956,070,754	)
Net increase (decrease)		30,855,224		$	30,855,224			(57,771,643	)	$	(57,771,643	)

3. Fees and Other Transactions with Affiliates

Management Fees. Management fees paid to the Manager were in accordance with the investment advisory agreement with the Trust which provides for a fee of 0.50% of the first $250 million of the Trust’s net assets; 0.475% of the next $250 million; 0.45% of the next $250 million; 0.425% of the next $250 million; 0.40% of the next $250 million; 0.375% of the next $250 million; 0.35% of the next $500 million and 0.325% of net assets in excess of $2 billion. Furthermore, under the Trust’s Agreement, when the value of the Trust’s net assets is less than $1.5 billion, the annual fee payable to the Manager shall be reduced by $100,000 based on average net assets computed daily and paid monthly at the annual rates. However, the annual fee cannot be less than $0. The Trust’s management fee for the six months ended December 31, 2000 was an annualized rate of 0.43%, before any waiver by the Manager if applicable.

Transfer Agent Fees. Shareholder Services, Inc. (SSI) acts as the transfer and shareholder servicing agent for the Trust and for other registered investment companies on an “at-cost” basis. Effective January 1, 2001, the Trust ended this “at-cost” arrangement and began paying SSI an annual maintenance fee for each Trust shareholder account.

Service Plan Fees. Under an approved service plan, the Trust may expend up to 0.20% of its average annual net assets annually to reimburse the Manager, as distributor, for costs incurred in connection with the personal service and maintenance of accounts that hold shares of the Trust, including amounts paid to brokers, dealers, banks and other financial institutions. During the six months ended December 31, 2000, the Trust paid $5,701 to a broker/dealer affiliated with the Manager as reimbursement for distribution-related expenses.

16

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See accompanying Notes to Financial Statements

20

See accompanying Notes to Financial Statements

21

Centennial Tax Exempt Trust

Officers and Trustees
James C. Swain, Trustee and Chairman of the Board
Bridget A. Macaskill, Trustee and President
Robert G. Avis, Trustee
George C. Bowen, Trustee
Jon S. Fossel, Trustee
Sam Freedman, Trustee
Raymond J. Kalinowski, Trustee
C. Howard Kast, Trustee
Robert M. Kirchner, Trustee
Michael J. Carbuto, Vice President
Andrew J. Donohue, Vice President and Secretary
Brian W. Wixted, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary

Investment Advisor and Distributor
Centennial Asset Management Corporation

Transfer and Shareholder Servicing Agent
Shareholder Services, Inc.

Custodian of Portfolio Securities
Citibank, N.A.

Independent Auditors
Deloitte & Touche LLP

Legal Counsel
Myer, Swanson, Adams & Wolf, P.C.

The financial statements included herein have been taken from the records of the Trust without examination of those records by the independent auditors.

For more complete information about Centennial Tax Exempt Trust, please refer to the Prospectus. To obtain a copy, call your financial advisor, or contact Centennial Asset Management Corp. at 1.800.525.9310. Please read the prospectus carefully before you invest any money.

RS0160.001.1200 Printed on recycled paper

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