Report of Independent Registered Public Accounting Firm



The Board of Directors and Shareholders
AXP California Tax-Exempt Trust:


In planning and performing our audit of the financial statements of AXP
California Tax-Exempt Fund (fund within the AXP California Tax-Exempt
Trust) for the year ended June 30, 2005, we considered its internal
control, including control activities 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 internal control.

The management of AXP California Tax-Exempt Trust is responsible for
establishing and maintaining internal control. In fulfilling this
responsibility, estimates and judgments by management are required to
assess the expected benefits and related costs of controls. Generally,
controls that are relevant to an audit pertain to the entity's objective of
preparing financial statements for external purposes that are fairly
presented in conformity with U.S. generally accepted accounting principles.
Those controls include the safeguarding of assets against unauthorized
acquisition, use, or disposition.

Because of inherent limitations in internal control, error or fraud may
occur and not be detected. Also, projection of any evaluation of internal
control to future periods is subject to the risk that it may become
inadequate because of changes in conditions or that the effectiveness of
the design and operation may deteriorate.

Our consideration of internal control would not necessarily disclose all
matters in the internal control that might be material weaknesses under
standards established by the Public Company Accounting Oversight Board
(United States). A material weakness is a significant deficiency, or
combination of significant deficiencies, that result in more than a remote
likelihood that a material misstatement of the annual or interim financial
statements will not be prevented or detected. However, we noted no matters
involving internal control and its operation, including controls for
safeguarding securities, that we consider to be material weaknesses as
defined above as of June 30, 2005.

This report is intended solely for the information and use of management,
the Board of Directors of AXP California Tax-Exempt Trust, and the
Securities and Exchange Commission and is not intended to be and should not
be used by anyone other than these specified parties.



/s/ KPMG LLP
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    KPMG LLP
    Minneapolis, Minnesota
    August 22, 2005