Centennial Tax Exempt Trust
                 Centennial California Tax Exempt Trust
                  Centennial New York Tax Exempt Trust

               Prospectus Supplement dated July 11, 2007

This supplement amends the Prospectus of each of the above-referenced
funds (each a "Fund" and together the "Funds") and is in addition to
any other supplement(s). For each of the Funds, the Prospectus is
amended by adding the following information:

On May 21, 2007, the U.S. Supreme Court (the "Court") agreed to review
a Kentucky Court of Appeals decision that held that Kentucky's tax on
interest income derived from bonds issued by states other than Kentucky
unconstitutionally discriminates against interstate commerce. At issue
in the case, Department of Revenue v. Davis, is a Kentucky statute that
exempts from Kentucky state income taxes the interest income derived
from bonds issued by the Commonwealth of Kentucky or its subdivisions
but does not exempt the interest income derived from bonds issued by
other states or their subdivisions.

The Court is expected to hear the case sometime in or after October
2007 and might issue a decision late in 2007 or in 2008. It is not
possible to predict what the Court will decide, but its decision could
have a substantial impact on municipal finance, including the issuance
and relative yields on municipal securities of particular states, and
on mutual funds that focus on municipal investments. Among the possible
outcomes of the case are the following:

   The Court may rule in favor of the Commonwealth of Kentucky, in
   which case the Kentucky statute would be deemed to be valid and the
   state's current rules governing the taxation of income derived from
   municipal bonds would not change.

   The Court may rule against the Commonwealth of Kentucky by upholding
   the ruling handed down by the Kentucky Court of Appeals and
   declaring the statute to be unconstitutional.  Because the case
   arises under the federal constitution, the Court's decision may be
   applied in other states that have similar statutes. Such a ruling
   would require Kentucky and such other states to treat income derived
   on in-state and out-of-state bonds equally - either exempting income
   derived from all out-of-state bonds from a state's income tax or
   taxing income derived from all municipal bonds. This might affect
   the rationale for investing in single-state municipal bond funds
   because, depending on the relative yields of the municipal bonds of
   the various states, this could reduce the attractiveness from an
   income tax perspective, of a state's own municipal bonds to its
   residents.

   The Court may also remand the case to the Kentucky courts for
   further consideration consistent with instructions provided by the
   Court.

The case is not expected to affect the federal tax exemption for
interest derived from municipal bonds.




      July 11, 2007                                     PS0000.029