Seligman Municipal Series Trust N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number 811-4250

Seligman Municipal Series Trust

(Exact name of Registrant as specified in charter)

100 Park Avenue

New York, New York 10017

(Address of principal executive offices) (Zip code)

Lawrence P. Vogel

100 Park Avenue

New York, New York 10017

(Name and address of agent for service)

Registrant’s telephone number, including area code: (212) 850-1864

Date of fiscal year end: 09/30

Date of reporting period: 03/31/04

FORM N-CSR

ITEM 1.	REPORTS TO STOCKHOLDERS.
	SELIGMAN MUNICIPAL SERIES TRUST
	Semi-Annual Report March 31, 2004

Seligman
Municipal Series Trust
California High-Yield Series      California Quality Series      Florida Series      North Carolina Series	Mid-Year Report March 31, 2004 Seeking Income Exempt From Regular Income Tax

      Seligman
    140 Years of Investment Experience

J. & W. Seligman & Co. Incorporated is a firm with a long tradition of investment expertise, offering a broad array of investment choices to help today’s investors seek their long-term financial goals.

Established in 1864, Seligman has a history of providing financial services marked not by fanfare, but rather by a quiet and firm adherence to financial prudence. While the world has changed dramatically in the 140 years since Seligman first opened its doors, the firm has continued to offer its clients high-quality investment solutions through changing times.

In the late 19th century, as the country grew, Seligman helped finance the westward expansion of the railroads, the construction of the Panama Canal, and the launching of urban transit systems. In the early 20th century, the firm helped fund the growing capital needs of new industries, including the nascent automobile and steel industries.

With the formation of Tri-Continental Corporation in 1929 — today, one of the nation’s largest diversified publicly-traded closed-end equity investment companies — Seligman began shifting its emphasis to investment management. In 1930, Seligman established what would be the first in an impressive lineup of mutual funds.

Seligman is proud of its distinctive past and of the traditional values that continue to shape the firm’s business decisions and investment judgment. While much has changed over the years, the firm’s commitment to providing prudent investment management that seeks to build wealth for clients over time is an enduring value that will continue to guide Seligman.

Table of Contents
To The Shareholders	1
Performance Overview and Portfolio Summary	2
Portfolios of Investments	7
Statements of Assets and Liabilities	13
Statements of Operations	15
Statements of Changes in Net Assets	16
Notes to Financial Statements	20
Financial Highlights	29
Trustees and Executive Officers	42
Glossary of Financial Terms	43
For More Information	back cover

   To The Shareholders

We are pleased to present the mid-year shareholder report for Seligman Municipal Series Trust, covering the six months ended March 31, 2004. This report contains investment results, and financial statements, as well as each Series’ portfolio of investments.

We appreciate your continued support of Seligman Municipal Series Trust and look forward to serving your investment needs for many years to come.

By Order of the Trustees,

 

William C. Morris Chairman

 

Brian T. Zino President

May 7, 2004

1

Performance Overview and Portfolio Summary(Unaudited)

Investment Results

California High-Yield Series

Total Returns For Periods Ended March 31, 2004
				Average Annual
	Six Months*			One Year			Five Years			Ten Years			Class C Since Inception 5/27/99
Class A**
With Sales Charge		(1.15)	%		0.83	%		4.17	%		5.53	%		n/a
Without Sales Charge		3.81			5.87			5.18			6.04			n/a
Class C**
With Sales Charge and CDSC#		1.26			2.98			n/a			n/a			4.25	%
Without Sales Charge and CDSC		3.34			5.08			n/a			n/a			4.48
Class D**
With 1% CDSC		2.34			4.08			n/a			n/a			n/a
Without CDSC		3.34			5.08			4.24			5.10			n/a
Lehman Brothers Municipal Bond Index***		3.12			5.86			6.00			6.81			6.27	‡

Net Asset Value Per Share				Dividend and Capital Gain Per Share, and Yield Information For Periods Ended March 31, 2004
	3/31/04	9/30/03	3/31/03	Dividend†	Capital Gain†	SEC Yield††
Class A	$6.69	$6.59	$6.60	$0.139	$0.009	3.44%
Class C	6.70	6.60	6.60	0.109	0.009	2.68
Class D	6.70	6.60	6.60	0.109	0.009	2.71

Holdings By Market Sectorø		Moody’s/S&P Ratingsø
Revenue Bonds	93%	Aaa/AAA	8%
General Obligation Bondsøø	7	Aa/AA	6
		A/A	54
Weighted Average Maturity	25.3 years	Baa/BBB	25
		Ca/CCC	7

----------------------

See footnotes on page 6.

2

Performance Overview and Portfolio Summary(Unaudited)

Investment Results

California Quality Series

Total Returns

For Periods Ended March 31, 2004

				Average Annual
	Six Months*			One Year			Five Years			Ten Years			Class C Since Inception 5/27/99
Class A**
With Sales Charge		(1.95)	%		(0.38)	%		4.07	%		5.63	%		n/a
Without Sales Charge		2.90			4.53			5.08			6.15			n/a
Class C**
With Sales Charge and CDSC#		0.42			1.43			n/a			n/a			4.26	%
Without Sales Charge and CDSC		2.45			3.46			n/a			n/a			4.48
Class D**
With 1% CDSC		1.45			2.46			n/a			n/a			n/a
Without CDSC		2.45			3.46			4.13			5.17			n/a
Lehman Brothers Municipal Bond Index***		3.12			5.86			6.00			6.81			6.27	‡

Net Asset Value Per Share							Dividend Per Share and Yield Information For Periods Ended March 31, 2004
	3/31/04		9/30/03		3/31/03		Dividend†		SEC Yield††
Class A	$	6.94	$	6.88	$	6.91	$	0.138		2.52	%
Class C		6.91		6.85		6.89		0.107		1.73
Class D		6.91		6.85		6.89		0.107		1.75

Holdings By Market Sectorø		Moody’s/S&P Ratingsø
Revenue Bonds	83%	Aaa/AAA	75%
General Obligation Bondsøø	17	Aa/AA	5
		A/A	9
Weighted Average Maturity	20.9 years	Baa/BBB	11

----------------------

See footnotes on page 6.

3

Performance Overview and Portfolio Summary(Unaudited)

Investment Results

Florida Series

Total Returns

For Periods Ended March 31, 2004

				Average Annual
	Six Months*			One Year			Five Years			Ten Years			Class C Since Inception 5/27/99
Class A**
With Sales Charge		(2.64)	%		0.35	%		4.25	%		5.61	%		n/a
Without Sales Charge		2.19			4.60			5.26			6.12			n/a
Class C**
With Sales Charge and CDSC#		(0.19	)		1.68			n/a			n/a			4.52	%
Without Sales Charge and CDSC		1.80			3.68			n/a			n/a			4.74
Class D**
With 1% CDSC		0.67			2.68			n/a			n/a			n/a
Without CDSC		1.67			3.68			4.45			5.32			n/a
Lehman Brothers Municipal Bond Index***		3.12			5.86			6.00			6.81			6.27	‡

Net Asset Value Per Share				Dividend and Capital Gain Per Share, and Yield Information For Periods Ended March 31, 2004
	3/31/04	9/30/03	3/31/03	Dividend†	Capital Gain†	SEC Yield††
Class A	$8.08	$8.08	$8.05	$0.159	$0.016	2.20%
Class C	8.09	8.09	8.07	0.129	0.016	1.55
Class D	8.09	8.10	8.07	0.129	0.016	1.57

Holdings By Market Sectorø		Moody’s/S&P Ratingsø
Revenue Bonds	67%	Aaa/AAA	71%
General Obligation Bondsøø	33	Aa/AA	7
		A/A	22
Weighted Average Maturity	18.1 years

----------------------

See footnotes on page 6.

4

Performance Overview and Portfolio Summary(Unaudited)

Investment Results

North Carolina Series

Total Returns
For Periods Ended March 31, 2004
				Average Annual
	Six Months*			One Year			Five Years			Ten Years			Class C Since Inception 5/27/99
Class A**
With Sales Charge		(2.71)	%		(0.19)	%		3.90	%		5.50	%		n/a
Without Sales Charge		2.19			4.75			4.91			6.01			n/a
Class C**
With Sales Charge and CDSC#		(0.17	)		1.84			n/a			n/a			4.17	%
Without Sales Charge and CDSC		1.81			3.85			n/a			n/a			4.38
Class D**
With 1% CDSC		0.81			2.85			n/a			n/a			n/a
Without CDSC		1.81			3.85			4.13			5.20			n/a
Lehman Brothers Municipal Bond Index***		3.12			5.86			6.00			6.81			6.27	‡

Net Asset Value Per Share				Dividend and Capital Gain Per Share, and Yield Information For Periods Ended March 31, 2004
	3/31/04	9/30/03	3/31/03	Dividend†	Capital Gain†	SEC Yield††
Class A	$8.14	$8.14	$8.08	$0.142	$0.034	2.22%
Class C	8.13	8.13	8.08	0.112	0.034	1.57
Class D	8.13	8.13	8.08	0.112	0.034	1.59

Holdings By Market Sectorø		Moody’s/S&P Ratingsø
Revenue Bonds	74%	Aaa/AAA	45%
General Obligation Bondsøø	26	Aa/AA	32
		A/A	7
Weighted Average Maturity	16.7 years	Baa/BBB	16

---------------

See footnotes on page 6.

5

Performance Overview and Portfolio Summary(Unaudited)

---------------

*	Returns for periods of less than one year are not annualized.
**	Return figures reflect any change in price and assume all distributions within the period are reinvested in additional shares. Returns for Class A shares are calculated with and without the effect of the initial 4.75% maximum sales charge. Returns for Class C shares are calculated with and without the effect of the initial 1% maximum sales charge and the 1% contingent deferred sales charge ("CDSC") that is charged on redemptions made within 18 months of purchase. Returns for Class D shares are calculated with and without the effect of the 1% CDSC, charged on redemptions made within one year of purchase. The rates of return will vary and the principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted. A portion of each Series’ ; income may be subject to applicable state and local taxes, and any amount may be subject to the federal alternative minimum tax. An investment in the Trust is not insured by the Federal Deposit Insurance Corporation or any other government agency. Past performance is not indicative of future investment results. During the periods presented, the Manager, at its discretion, waived a portion of its management fee for the California High-Yield and Florida Series. Absent such waivers, returns would have been lower. The Manager may discontinue such waivers at any time.
***	The Lehman Brothers Municipal Bond Index is an unmanaged index that does not include any fees or sales charges. It is composed of approximately 60% revenue bonds and 40% state government obligations. Investors cannot invest directly in an index.
#	The CDSC is 1% for periods of 18 months or less.
‡	From 5/28/99.
†	Represents per share amount paid or declared for the six months ended March 31, 2004.
††	Current yield, representing the annualized yield for the 30-day period ended March 31, 2004, has been computed in accordance with SEC regulations and will vary. During the period, the Manager, at its discretion, waived a portion of its management fee for the California High-Yield and Florida Series. Without these waivers the yields would be as follows:

	Class A		Class C		Class D
California High-Yield Series	3.34	%	2.58	%	2.61	%
Florida Series	2.05		1.40		1.42

ø	Percentages based on current market values of long-term holdings at March 31, 2004.
øø	Includes pre-refunded and escrowed-to-maturity securities.

6

Portfolios of Investments(Unaudited)

March 31, 2004

California High-Yield Series

Face Amount	Municipal Bonds	Ratings Moody’s/S&P	Value
$1,000,000	California Department of Veterans Affairs (Home Purchase Rev.), 5-1/2% due 12/1/2018*	Aa2/A	$	1,049,460
1,500,000	California Department of Veterans Affairs (Home Purchase Rev.), 5.60% due 12/1/2028	Aaa/AAA		1,547,340
275,000	California Educational Facilities Authority Rev. (Loyola Marymount University), 5-3/4% due 10/1/2024	A2/NR		281,221
2,000,000	California Educational Facilities Authority Rev. (Scripps College), 5% due 8/1/2031	A1/NR		2,046,700
3,000,000	California Health Facilities Financing Authority Rev. (Cedars-Sinai Medical Center), 6-1/4% due 12/1/2034	A3/NR		3,253,830
2,750,000	California Health Facilities Financing Authority Rev. (Kaiser Permanente), 5.40% due 5/1/2028††	A3/A		2,959,770
2,500,000	California Housing Finance Agency (Multi-Family Housing Rev.), 5-3/8% due 2/1/2036*	Aa3/AA-		2,565,600
1,510,000	California Housing Finance Agency (Single Family Mortgage), 5.40% due 8/1/2028*	Aaa/AAA		1,564,994
2,500,000	California Infrastructure and Economic Development Bank Rev. (The J. David Gladstone Institutes Project), 5-1/4% due 10/1/2034	NR/A-		2,580,050
1,750,000	California Pollution Control Financing Authority Rev. (Pacific Gas & Electric Co.), 5-7/8% due 6/1/2023*	NR/CCC		1,738,100
1,000,000	California Pollution Control Financing Authority Rev. (Pacific Gas & Electric Co.), 5.85% due 12/1/2023*	NR/CCC		1,001,000
2,500,000	California Statewide Communities Development Authority Rev. (Sutter Health), 5-5/8% due 8/15/2042	A1/AA-		2,623,800
1,500,000	Foothill/Eastern Transportation Corridor Agency, CA Toll Road Rev., 5-3/4% due 1/15/2040	Baa3/BBB-		1,530,975
2,870,000	Modesto, CA Irrigation District Certificates of Participation, 5.30% due 7/1/2022	A2/A+		2,872,095
2,005,000	Pleasanton, CA Joint Powers Financing Authority Reassessment Rev., 6.15% due 9/2/2012	Baa1/NR		2,051,436
3,000,000	Puerto Rico Highway & Transportation Authority Rev., 5-1/2% due 7/1/2036	Baa1/A		3,308,220
3,000,000	San Bernardino, CA Joint Powers Financing Authority (California Dept. of Transportation Lease), 5-1/2% due 12/1/2020	Baa2/BBB-		3,092,520
2,000,000	San Francisco, CA City & County Public Utilities Commission Rev., 5% due 11/1/2026	A1/A+		2,036,780
2,000,000	Washington Township, CA Hospital District Hospital Healthcare System Rev., 5-1/4% due 7/1/2029	A2/NR		2,060,580
Total Municipal Bonds (Cost $38,177,839) — 93.6%				40,164,471

---------------
See footnotes on page 12.

7

Portfolios of Investments(Unaudited)

March 31, 2004

California High-Yield Series(continued)

Face Amount	Variable Rate Demand Notes	Ratings Moody’s/S&P	Value
$1,000,000	New York City, NY Municipal Water Finance Authority, Water & Sewer System Rev. due 6/15/2023	VMIG 1/A-1+	$	1,000,000
800,000	North Central, TX Health Facilities Development Corporation Rev. (Presbyterian Healthcare System Project) due 12/1/2015	VMIG 1/A-1+		800,000
400,000	South Fork, PA Municipal Authority Hospital Rev. (Conemaugh Health System Projects) due 7/1/2028	NR/A-1		400,000
	Total Variable Rate Demand Notes (Cost $2,200,000) — 5.1%			2,200,000
	Total Investments (Cost $40,377,839) — 98.7%			42,364,471
	Other Assets Less Liabilities — 1.3%			530,562
Net Assets — 100.0%			$		42,895,033

California Quality Series

Face Amount	Municipal Bonds	Ratings Moody’s/S&P	Value
$3,000,000	California Department of Water Resources Water System Rev. (Central Valley Project), 6.10% due 12/1/2029ø	Aaa/AA	$	3,326,400
3,000,000	California Educational Facilities Authority Rev. (Pepperdine University), 5% due 11/1/2029	A1/NR		3,087,600
2,000,000	California Educational Facilities Authority Rev. (Stanford University), 5.35% due 6/1/2027	Aaa/AAA		2,145,080
3,000,000	California Educational Facilities Authority Rev. (University of San Diego), 5% due 10/1/2028	Aaa/NR		3,101,790
1,000,000	California Infrastructure & Economic Development Bank Rev. (Bay Area Toll Bridge Seismic Retrofit), 5% due 7/1/2023	Aaa/AAA		1,056,020
4,000,000	California Pollution Control Financing Authority Rev. (Mobil Oil Corporation Project), 5-1/2% due 12/1/2029*	Aaa/AAA		4,293,120
4,000,000	California State GOs, 5-3/8% due 10/1/2027	Baa1/BBB		4,099,080
2,420,000	California State Veterans GOs, 5.70% due 12/1/2032*	Baa1/A		2,491,826
3,000,000	California Statewide Communities Development Authority Certificates of Participation (The Trustees of the J. Paul Getty Trust), 5% due 10/1/2023	Aaa/AAA		3,044,310
2,000,000	California Statewide Communities Development Authority Rev. (Kaiser Permanente), 5.50% due 11/1/2032	A3/A		2,068,020
3,000,000	East Bay, CA Municipal Utility District Water System Rev., 5% due 6/1/2026	Aaa/AAA		3,064,230
2,500,000	Eastern Municipal Water District, CA Water and Sewer Rev., 6-3/4% due 7/1/2012	Aaa/AAA		3,088,800
2,000,000	Los Angeles, CA Department of Water & Power Water System Rev., 5-1/8% due 7/1/2041	Aa3/AA		2,062,600
3,000,000	Orange County, CA Local Transportation Authority (Measure M Sales Tax Rev.), 6% due 2/15/2009	Aaa/AAA		3,497,610
1,000,000	Rancho, CA Water District Financing Authority Rev., 5.90% due 11/1/2015	Aaa/AAA		1,086,420

---------------
See footnotes on page 12.

8

Portfolios of Investments(Unaudited)

March 31, 2004

California Quality Series(continued)

Face Amount	Municipal Bonds	Ratings Moody’s/S&P	Value
$4,000,000	Regents of the University of California Rev. (Multiple Purpose Projects), 5-3/8% due 9/1/2024	Aaa/AAA	$	4,307,920
1,000,000	Sacramento County, CA Sanitation Districts Financing Authority Rev. (Sacramento Regional County Sanitation District), 5-7/8% due 12/1/2027	Aa3/AA		1,070,280
4,000,000	Sacramento County, CA Sanitation Districts Financing Authority Rev. (Sacramento Regional County Sanitation District), 5% due 12/1/2027	Aaa/AAA		4,123,600
4,250,000	San Francisco, CA Bay Area Rapid Transit District (Sales Tax Rev.), 5% due 7/1/2028	Aaa/AAA		4,364,367
3,000,000	San Francisco, CA City and County Airports Commission Rev. (International Airport), 6.60% due 5/1/2024*	Aaa/AAA		3,072,000
Total Municipal Bonds (Cost $54,355,890) — 93.1%				58,451,073
Variable Rate Demand Notes
100,000	Columbia, AL Industrial Development Board Pollution Control Rev. (Alabama Power Co. Project) due 10/1/2022	VMIG 1/A-1		100,000
400,000	Lehigh County, PA General Purpose Authority Rev. (Lehigh Valley Hospital) due 7/1/2028	VMIG 1/NR		400,000
2,000,000	New York City, NY GOs due 8/1/2018	VMIG 1/A-1+		2,000,000
1,000,000	North Central, TX Health Facilities Development Corporation Rev. (Presbyterian Healthcare System Project) due 12/1/2015	VMIG 1/A-1+		1,000,000
Total Variable Rate Demand Notes (Cost $3,500,000) — 5.6%				3,500,000
Total Investments (Cost $57,855,890) — 98.7%				61,951,073
Other Assets Less Liabilities — 1.3%				847,513
Net Assets — 100.0%			$	62,798,586

Florida Series

Face Amount	Municipal Bonds	Ratings Moody’s/S&P	Value
$2,000,000	Broward County, FL Airport System Rev., 5-1/4% due 10/1/2026*	Aaa/AAA	$2,080,620
1,000,000	Dade County, FL Aviation Rev., 6-1/8% due 10/1/2020ø	Aaa/AAA	1,043,450
2,000,000	Dade County, FL Public Improvement GOs, 5-3/4% due 10/1/2016	Aaa/AAA	2,200,000
1,750,000	Escambia County, FL Health Facilities Authority Rev. (Ascension Health Credit Group), 6% due 11/15/2031ø	Aa2/AAA	2,068,885
295,000	Florida Housing Finance Agency Rev. (General Mortgage), 6.35% due 6/1/2014	NR/AAA	301,396
625,000	Florida Housing Finance Agency Rev. (Homeowner Mortgage), 6.20% due 7/1/2027*	Aa2/AA	651,481
265,000	Florida Housing Finance Agency Rev. (Single Family Mortgage), 6.55% due 7/1/2014*	Aaa/AAA	269,272
595,000	Florida Housing Finance Corporation Rev. (Homeowner Mortgage), 5.95% due 1/1/2032*	Aaa/AAA	627,267

---------------
See footnotes on page 12.

9

Portfolios of Investments(Unaudited)

March 31, 2004

Florida Series(continued)

Face Amount	Municipal Bonds	Ratings Moody’s/S&P	Value
$2,500,000	Florida Ports Financing Commission Rev. (State Transportation Trust Fund), 5-3/8% due 6/1/2027*	Aaa/AAA	$	2,578,050
2,500,000	Florida State Turnpike Authority Rev., 5-5/8% due 7/1/2025ø	Aaa/AAA		2,663,050
2,000,000	Greater Orlando Aviation Authority, FL Airport Facilities Rev., 5-1/4% due 10/1/2023*	Aaa/AAA		2,049,260
2,000,000	Hillsborough County, FL School Board (Certificates of Participation), 6% due 7/1/2025ø	Aaa/AAA		2,360,960
2,000,000	Jacksonville, FL Electric Authority System Rev., 5-1/2% due 10/1/2041	Aa2/AA		2,156,320
2,000,000	Jacksonville, FL Electric Authority (Water & Sewer System) Rev., 5-3/8% due 10/1/2030	Aaa/AAA		2,119,680
1,000,000	Jacksonville, FL Port Authority Airport Rev., 6-1/4% due 10/1/2024*	Aaa/AAA		1,077,320
2,000,000	Jacksonville, FL Sewage & Solid Waste Disposal Facilities Rev. (Anheuser—Busch Project), 5-7/8% due 2/1/2036*	A1/A+		2,087,540
1,000,000	Lee County, FL Water & Sewer Rev., 5% due 10/1/2023	Aaa/NR		1,054,920
2,000,000	Marion County, FL Hospital District Health System Rev. (Munroe Regional Health System), 5-5/8% due 10/1/2024	A2/NR		2,061,940
1,750,000	Orange County, FL Health Facilities Authority Hospital Rev. (Adventist Health System/Sunbelt Obligation Group), 6-3/8% due 11/15/2020	A3/A		1,933,155
2,000,000	Pinellas County, FL Health Facilities Authority Rev. (Baycare Health System), 5-1/2% due 11/15/2033	A1/NR		2,078,360
2,000,000	Reedy Creek, FL Improvement District Utilities Rev., 5-1/8% due 10/1/2019	Aaa/AAA		2,150,020
1,750,000	Tampa Bay, FL Regional Water Supply Utility System Authority Rev., 5-3/4% due 10/1/2029ø	Aaa/AAA		2,062,707
Total Municipal Bonds (Cost $34,683,870) — 90.2%				37,675,653
Variable Rate Demand Notes
200,000	New York City, NY GOs due 8/1/2016	VMIG 1/A-1+		200,000
900,000	New York City, NY GOs due 8/1/2015	VMIG 1/A-1+		900,000
1,775,000	Sarasota County, FL Public Hospital Board (Sarasota Memorial Hospital Project) due 7/1/2037	VMIG 1/NR		1,775,000
500,000	West Jefferson, AL Industrial Development Board Pollution Control Rev. (Alabama Power Company) due 6/1/2028	VMIG 1/A-1		500,000
Total Variable Rate Demand Notes (Cost $3,375,000) — 8.1%				3,375,000
Total Investments (Cost $38,058,870) — 98.3%				41,050,653
Other Assets Less Liabilities — 1.7%				699,940
Net Assets —100.0%			$	41,750,593

---------------
See footnotes on page 12.

10

Portfolios of Investments(Unaudited)

March 31, 2004

North Carolina Series

Face		Ratings
Amount	Municipal Bonds	Moody’s/S&P		Value
$1,250,000	Appalachian State University, NC Housing & Student Center System Rev., 5.60% due 7/15/2020	Aaa/NR	$	1,403,438
1,250,000	Asheville, NC Water System Rev., 5.70% due 8/1/2025	Aaa/AAA		1,364,350
1,185,000	Buncombe County, NC Metropolitan Sewer District Sewer System Rev., 5% due 7/1/2020	Aaa/AAA		1,268,223
1,000,000	Charlotte, NC Storm Water Fee Rev., 6% due 6/1/2025ø	Aa2/AA+		1,190,090
1,250,000	Charlotte, NC Water & Sewer System Rev., 5-1/4% due 6/1/2025ø	Aa1/AAA		1,436,350
2,000,000	Charlotte-Mecklenburg Hospital Authority, NC Health Care System Rev., 5-3/4% due 1/15/2021	Aa3/AA		2,155,320
250,000	City of Winston-Salem, NC Water & Sewer System Rev., 5-1/8% due 6/1/2028ø	Aa2/AAA		285,500
215,000	Greensboro, NC Combined Enterprise System Rev., 5-1/4% due 6/1/2022	Aa3/AA+		232,866
2,500,000	Martin County, NC Industrial Facilities and Pollution Control Financing Authority Solid Waste Disposal Rev. (Weyerhaeuser Company Project), 6% due 11/1/2025*	Baa2/BBB		2,571,075
735,000	North Carolina Housing Finance Agency Rev. (Home Ownership), 6.40% due 7/1/2028*	Aa2/AA		791,808
375,000	North Carolina Housing Finance Agency Rev. (Single Family), 6-1/2% due 3/1/2018	Aa2/AA		382,215
1,500,000	North Carolina Medical Care Commission Hospital Rev. (First Health of the Carolinas Project), 5% due 10/1/2028	Aa3/AA		1,525,200
1,500,000	North Carolina Medical Care Commission Hospital Rev. (Gaston Health Care), 5% due 2/15/2029	A1/A+		1,507,485
1,750,000	North Carolina Municipal Power Agency No. 1 (Catawba Electric Rev.), 5% due 1/1/2020††	Aaa/AAA		1,918,910
1,000,000	Puerto Rico Electric Power Authority Rev., 5-1/4% due 7/1/2021	Aaa/AAA		1,137,150
1,000,000	University of North Carolina at Chapel Hill Hospital Rev., 5-1/4% due 2/15/2026ø	A1/AA		1,087,820
1,250,000	University of North Carolina at Charlotte Rev. (Student Activity Center), 5-1/2% due 6/1/2021	Aaa/AAA		1,321,925
1,000,000	Wake County, NC Industrial Facilities & Pollution Control Financing Authority Rev. (Carolina Power & Light), 5-3/8% due 2/1/2017	A3/BBB		1,079,340
Total Municipal Bonds (Cost $20,739,966) — 89.0%				22,659,065

---------------
See footnotes on page 12.

11

Portfolios of Investments (Unaudited)

March 31, 2004

North Carolina Series(continued)

Face		Ratings
Amount	Variable Rate Demand Notes	Moody’s/S&P	Value
$1,000,000	Missouri State Health & Educational Facilities Authority Health Facility Rev. (Cox Health System) due 6/1/2022	VMIG 1/A-1	$		1,000,000
400,000	University Athletic Association Inc., FL (University of Florida Stadium Project) due 2/1/2020	VMIG 1/NR			400,000
1,000,000	West Jefferson, AL Industrial Development Board Pollution Control Rev. (Alabama Power Company) due 6/1/2028	VMIG 1/A-1			1,000,000
Total Variable Rate Demand Notes (Cost $2,400,000) — 9.4%					2,400,000
Total Investments (Cost $23,139,966) — 98.4%					25,059,065
Other Assets Less Liabilities — 1.6%					399,930
Net Assets — 100.0%				$	25,458,995

---------------

ø	Pre-refunded security.
††	Escrowed-to-maturity security.
*	Interest income earned from this security is subject to the federal alternative minimum tax.

See Notes to Financial Statements.

12

Statements of Assets and Liabilities

(Unaudited)

March 31, 2004

Assets:	California High-Yield Series		California Quality Series		Florida Series			North Carolina Series
Investments, at value:*
Long-term holdings	$	40,164,471	$	58,451,073	$	37,675,653		$	22,659,065
Short-term holdings		2,200,000		3,500,000		3,375,000			2,400,000
Total Investments		42,364,471		61,951,073		41,050,653			25,059,065
Cash		81,592		33,139		89,486			67,241
Interest receivable		600,371		1,002,278		800,684			313,642
Expenses prepaid to shareholder service agent		10,260		12,736		8,844			5,307
Receivable for securities sold		—		—		—			171,842
Other		2,353		3,407		2,791			1,455
Total Assets		43,059,047		63,002,633		41,952,458			25,618,552
Liabilities:
Dividends payable		67,338		95,821		58,588			32,301
Payable for Shares of Beneficial Interest repurchased		37,855		27,066		88,770			84,054
Management fee payable		14,722		27,161		12,535			10,957
Distribution and service fees payable		8,767		10,300		13,167			7,969
Accrued expenses and other		35,332		43,699		28,805			24,276
Total Liabilities		164,014		204,047		201,865			159,557
Net Assets	$	42,895,033	$	62,798,586	$	41,750,593		$	25,458,995
Composition of Net Assets:
Shares of Beneficial Interest, at par:
Class A	$	5,422	$	8,133	$	4,377		$	2,651
Class C		469		736		59			383
Class D		515		188		193			96
Additional paid-in capital		40,611,236		58,120,036		38,673,774			23,457,466
Undistributed net investment income		140,646		194,683		80,213			46,742
Undistributed/accumulated net realized gain (loss)		150,113		379,627		(346	)		32,558
Net unrealized appreciation of investments		1,986,632		4,095,183		2,991,783			1,919,099
Net Assets	$	42,895,033	$	62,798,586	$	41,750,593		$	25,458,995
(Continued on page 14.)
________ *Cost of investments	$	40,377,839	$	57,855,890	$	38,058,870		$	23,139,966
See footnotes on page 14.

13

Statements of Assets and Liabilities

(Unaudited) (continued)

March 31, 2004

	California High-Yield Series		California Quality Series		Florida Series		North Carolina Series
Net Assets:
Class A	$	36,301,103	$	56,412,959	$	35,347,909	$	21,569,993
Class C	$	3,139,787	$	5,087,662	$	4,844,730	$	3,112,306
Class D	$	3,454,143	$	1,297,965	$	1,557,954	$	776,696
Shares of Beneficial Interest Outstanding (unlimited sharesauthorized; $0.001 par value):
Class A		5,422,394		8,133,492		4,376,825		2,651,241
Class C		468,555		736,084		598,698		383,015
Class D		515,365		187,779		192,531		95,579
Net Asset Value per Share:
Class A		$6.69		$6.94		$8.08		$8.14
Class C		$6.70		$6.91		$8.09		$8.13
Class D		$6.70		$6.91		$8.09		$8.13

------------

See Notes to Financial Statements.

14

Statements of Operations(Unaudited)

For the Six Months Ended March 31, 2004

Investment Income:		California High-Yield Series		California Quality Series		Florida Series		North Carolina Series
Interest	$	1,163,189		$1,648,895	$	1,018,157	$	618,119
Expenses:
Management fees		111,041		165,002		102,155		65,291
Distribution and service fees		53,998		63,426		74,922		47,266
Shareholder account services		47,948		58,698		41,007		24,352
Auditing and legal fees		13,435		17,491		13,521		10,135
Registration		7,658		8,001		6,778		6,402
Custody and related services		7,414		10,570		6,881		4,749
Trustee’s fees and expenses		5,237		5,566		4,667		4,314
Shareholder reports and communications		3,135		4,652		3,160		2,463
Miscellaneous		2,532		3,302		2,233		1,770
Total Expenses
Before Management Fee Waiver		252,398		336,708		255,324		166,742
Fee Waiver (Note 4)		(22,232	)	—		(30,647	)	—
Total Expenses
After Management Fee Waiver		230,166		336,708		224,677		166,742
Net Investment Income		933,023		1,312,187		793,480		451,377
Net Realized and Unrealized Gain (Loss) on Investments:
Net realized gain on investments		192,896		540,551		1,818		90,990
Net change in unrealized appreciation of investments		529,993		5,501		43,585		(1,122)
Net Gain on Investments		722,889		546,052		45,403		89,868
Increase in Net Assets from Operations	$	1,655,912	$	1,858,239	$	838,883	$	541,245

------------

See Notes to Financial Statements.

15

Statements of Changes in Net Assets

(Unaudited)

	California High-Yield Series						California Quality Series
Operations:		Six Months Ended 3/31/04			Year Ended 9/30/03			Six Months Ended 3/31/04			Year Ended 9/30/03
Net investment income	$	933,023		$	2,134,838		$	1,312,187		$	2,900,076
Net realized gain on investments		192,896			140,138			540,551			22,618
Net change in unrealized appreciation of investments		529,993			(1,238,128	)		5,501			(1,945,933	)
Increase in Net Assets from Operations		1,655,912			1,036,848			1,858,239			976,761
Distributions to Shareholders:
Net investment income:
Class A		(786,045	)		(1,822,424	)		(1,185,001	)		(2,650,341	)
Class C		(54,971	)		(112,043	)		(84,080	)		(160,286	)
Class D		(61,382	)		(168,572	)		(21,276	)		(55,316	)
Total		(902,398	)		(2,103,039	)		(1,290,357	)		(2,865,943	)
Net realized short-term gain on investments:†
Class A		—			(125,405	)		—			—
Class C		—			(8,656	)		—			—
Class D		—			(13,453	)		—			—
Total		—			(147,514	)		—			—
Net realized long-term gain on investments:
Class A		(52,401	)		(88,522	)		—			—
Class C		(4,748	)		(6,110	)		—			—
Class D		(5,012	)		(9,496	)		—			—
Total		(62,161	)		(104,128	)		—			—
Decrease in Net Assets from Distributions		(964,559	)		(2,354,681	)		(1,290,357	)		(2,865,943	)

(Continued on page 17.)

---------------

See footnotes on page 17.

16

Statements of Changes in Net Assets

(Unaudited) (continued)

		California High-Yield Series						California Quality Series
		Six Months			Year			Six Months			Year
		Ended			Ended			Ended			Ended
		3/31/04			9/30/03			3/31/04			9/30/03
Transactions in Shares of Beneficial Interest:
Net proceeds from sales of shares	$	234,160		$	1,532,392		$	592,319		$	4,974,059
Investment of dividends		560,909			1,243,133			683,973			1,478,061
Exchanged from associated funds		144,989			15,772,060			108,419			1,676,737
Shares issued in payment of
gain distributions		45,728			182,579			—			—
Total		985,786			18,730,164			1,384,711			8,128,857
Cost of shares repurchased		(4,555,469	)		(6,600,451	)		(7,626,709	)		(16,337,268	)
Exchanged into associated funds		(1,337,949	)		(23,587,901	)		(377,688	)		(2,788,344	)
Total		(5,893,418	)		(30,188,352	)		(8,004,397	)		(19,125,612	)
Decrease in Net Assets from Transactions in Shares of Beneficial Interest		(4,907,632	)		(11,458,188	)		(6,619,686	)		(10,996,755	)
Decrease in Net Assets		(4,216,279	)		(12,776,021	)		(6,051,804	)		(12,885,937	)
Net Assets:
Beginning of period		47,111,312			59,887,333			68,850,390			81,736,327
End of Period*	$	42,895,033		$	47,111,312		$	62,798,586		$	68,850,390
_____________
* Including undistributed net investment income as follows: † For tax purposes, these distributions are considered ordinary income. See Notes to Financial Statements.	$	140,646		$	116,767		$	194,683		$	180,123

17

Statements of Changes in Net Assets

(Unaudited) (continued)

	Florida Series						North Carolina Series
		Six Months Ended 3/31/04			Year Ended 9/30/03			Six Months Ended 3/31/04			Year Ended 9/30/03
Operations:
Net investment income	$	793,480		$	1,654,688		$	451,377		$	995,783
Net realized gain on investments		1,818			66,794			90,990			41,191
Net change in unrealized appreciation of investments		43,585			(76,255	)		(1,122	)		(109,179	)
Increase in Net Assets from Operations		838,883			1,645,227			541,245			927,795
Distributions to Shareholders:
Net investment income:
Class A		(678,456	)		(1,439,063	)		(389,092	)		(875,583	)
Class C		(77,549	)		(140,805	)		(43,232	)		(82,387	)
Class D		(24,463	)		(57,918	)		(11,021	)		(25,624	)
Total		(780,468	)		(1,637,786	)		(443,345	)		(983,594	)
Net realized short-term gain on investments:†
Class A		—			—			—			(21,521	)
Class C		—			—			—			(2,424	)
Class D		—			—			—			(803	)
Total		—			—			—			(24,748	)
Net realized long-term gain on investments:
Class A		(67,424	)		(50,295	)		(94,021	)		(92,232	)
Class C		(9,437	)		(5,431	)		(13,462	)		(10,386	)
Class D		(3,002	)		(2,384	)		(3,449	)		(3,440	)
Total		(79,863	)		(58,110	)		(110,932	)		(106,058	)
Decrease in Net Assets from Distributions		(860,331	)		(1,695,896	)		(554,277	)		(1,114,400	)

(Continued on page 19.)

---------------

See footnotes on page 19.

18

Statements of Changes in Net Assets

(Unaudited) (continued)

	Florida Series						North Carolina Series
		Six Months Ended 3/31/04			Year Ended 9/30/03			Six Months Ended 3/31/04			Year Ended 9/30/03
Transactions in Shares of Beneficial Interest:
Net proceeds from sales of shares	$	3,329,594		$	4,358,821		$	347,194		$	3,745,650
Investment of dividends		423,107			759,368			294,39			588,430
Exchanged from associated funds		322,306			1,566,632			252,007			4,162,491
Shares issued in payment of gain distributions		54,727			27,939			86,785			93,143
Total		4,129,734			6,712,760			980,382			8,589,714
Cost of shares repurchased		(2,673,931	)		(8,503,284	)		(1,832,509	)		(5,956,929	)
Exchanged into associated funds		(68,236	)		(1,030,121	)		(55,676	)		(5,355,336	)
Total		(2,742,167	)		(9,533,405	)		(1,888,185	)		(11,312,265	)
Increase (Decrease) in Net Assets from Transactions in Shares of Beneficial Interest		1,387,567			(2,820,645	)		(907,803	)		(2,722,551	)
Increase (Decrease) in Net Assets		1,366,119			(2,871,314	)		(920,835	)		(2,909,156	)
Net Assets:
Beginning of period		40,384,474			43,255,788			26,379,830			29,288,986
End of Period*	$	41,750,593		$	40,384,474		$	25,458,995		$	26,379,830
---------- *   Including undistributed net investment income as follows:	$	80,213		$	67,995		$	46,742		$	43,575

†  For tax purposes, these distributions are considered ordinary income.

See Notes to Financial Statements.

19

19

Notes to Financial Statements (Unaudited)

1.	Multiple Classes of Shares — Seligman Municipal Series Trust (the "Trust") consists of four separate series: the "California High-Yield Series," the "California Quality Series," the "Florida Series," and the "North Carolina Series." Each Series of the Trust offers three classes of shares.
	Class A shares are sold with an initial sales charge of up to 4.75% and a continuing service fee of up to 0.25% on an annual basis. Class A shares purchased in an amount of $1,000,000 or more are sold without an initial sales charge but are subject to a contingent deferred sales charge ("CDSC") of 1% on redemptions within 18 months of purchase.
	Class C shares are sold primarily with an initial sales charge of up to 1% and a CDSC, if applicable, of 1% imposed on redemptions made within 18 months of purchase. Effective November 25, 2003, Class C shares purchased through certain financial intermediaries may be bought without an initial sales charge and with a 1% CDSC on redemptions made within 12 months of purchase. All Class C shares are subject to a distribution fee of up to 0.75% and a service fee of up to 0.25% on an annual basis.
	Class D shares are sold without an initial sales charge but are subject to a distribution fee of up to 0.75% and a service fee of up to 0.25% on an annual basis, and a CDSC, if applicable, of 1% imposed on redemptions made within one year of purchase.
	The three classes of shares for each Series represent interests in the same portfolio of investments, have the same rights and are generally identical in all respects except that each class bears its separate distribution and certain other class-specific expenses, and has exclusive voting rights with respect to any matter on which a separate vote of any class is required.
2.	Significant Accounting Policies — The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results may differ from these estimates. These unaudited interim financial statements reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results for the interim period presented. All such adjustments are of a normal recurring nature. The following summarizes the significant accounting policies of the Trust:

a	Security Valuation — All municipal securities and other short-term holdings maturing in more than 60 days are valued based upon quotations provided by an independent pricing service or, in their absence, at fair value determined in accordance with procedures approved by the Trustees. Short-term holdings maturing in 60 days or less are generally valued at amortized cost.
b.	Federal Taxes — There is no provision for federal income tax. Each Series has elected to be taxed as a regulated investment company and intends to distribute substantially all taxable net income and net realized gains.
c.	Security Transactions and Related Investment Income — Investment transactions are recorded on trade dates. Identified cost of investments sold is used for both financial reporting and federal income tax purposes. Interest income is recorded on the accrual basis. The Trust amortizes discounts and premiums paid on bonds and other debt securities for financial reporting purposes.
	Variable rate demand notes purchased by the Trust may be put back to the designated remarketing agent for the issue at par on any day, for settlement within seven days, and, accordingly, are treated as short-term holdings. These notes bear interest at a rate that resets daily or weekly. At March 31, 2004, the interest rates paid on these notes ranged from 1.00% to 1.15%.

20

Notes to Financial Statements(Unaudited)

d.

Multiple Class Allocations — Each Series’ income, expenses (other than class specific expenses), and realized and unrealized gains or losses are allocated daily to each class of shares of that Series based upon the relative value of the shares of each class. Class specific expenses, which include distribution and service fees and any other items that are specifically attributable to a particular class, are charged directly to such class. For the six months ended March 31, 2004, distribution and service fees were the only class specific expenses.

e.

Distributions to Shareholders — Dividends are declared daily and paid monthly. Other distributions paid by the Trust are recorded on the ex-dividend date. The treatment for financial reporting purposes of distributions made to shareholders during the year from net investment income or net realized gains may differ from their ultimate treatment for federal income tax purposes. These differences are caused primarily by differences in the timing of the recognition of certain components of income, expense, or realized capital gain for federal income tax purposes. Where such differences are permanent in nature, they are reclassified in the components of net assets based on their ultimate characterization for federal income tax purposes. Any such reclassifications will have no effect on net as sets, results of operations, or net asset values per share of any Series of the Trust.

3. Purchases and Sales of Securities — Purchases and sales of portfolio securities, excluding short-term investments, for the six months ended March 31, 2004, were as follows:

Series	Purchases		Sales
California High-Yield	—	$	4,520,760
California Quality	—		8,460,981
Florida	—		670,000
North Carolina	—		2,504,825

At March 31, 2004, the tax basis cost of investments for federal income tax purposes of each Series was less than the cost for financial reporting purposes due to the amortization of market discount for financial reporting purposes, offset, in part, for the California Quality Series by the tax deferral of losses on wash sales of $149,160. The tax basis cost and gross unrealized appreciation and depreciation of portfolio securities were as follows:

Series
	Tax Basis Cost	Total Unrealized Appreciation	Total Unrealized Depreciation
California High-Yield	$40,247,010	$2,165,444	$47,983
California Quality	57,814,894	4,136,179	—
Florida	37,983,607	3,067,046	—
North Carolina	23,093,900	1,965,165	—

4. Management Fee, Distribution Services, and Other Transactions — J. & W. Seligman & Co. Incorporated (the "Manager") manages the affairs of the Trust and provides the necessary personnel and facilities. Compensation of all officers of the Trust, all trustees of the Trust who are employees of the Manager, and all personnel of the Trust and the Manager is paid by the Manager. The Manager’s fee is calculated daily and payable monthly, equal to 0.50% per annum of each Series’ average daily net assets. The Manager, at its discretion, agreed to waive a portion of its fees for the six months ended March 31, 2004 to limit the per annum fee of California High-Yield Series and Florida Series were $22,232 and $30,647, respectively. Such waiver may be discontinued at any time. Absent such waiver,Yield Series and Flo rida Series to 0.40% and 0.35%, respectively. For the six months ended March 31, 2004, the amounts of fees waived by the Manager for California High returns would have been lower.

21

Notes to Financial Statements (Unaudited)

Seligman Advisors, Inc. (the "Distributor"), agent for the distribution of the Trust’s shares and an affiliate of the Manager, received the following concessions from sales of Class A shares, after commissions were paid to dealers for sales of Class A and Class C shares:

Series	Distributor Concessions	Dealer Commissions
California High-Yield	$     326	$   3,038
California Quality	1,174	11,792
Florida	2,970	25,978
North Carolina	316	3,743

The Trust has an Administration, Shareholder Services and Distribution Plan (the "Plan") with respect to distribution of its shares. Under the Plan, with respect to Class A shares, service organizations can enter into agreements with the Distributor and receive continuing fees of up to 0.25% on an annual basis of the average daily net assets of the Class A shares attributable to the particular service organizations for providing personal services and/or the maintenance of shareholder accounts. The Distributor charges such fees to the Trust monthly pursuant to the Plan. For the six months ended March 31, 2004, for California High-Yield Series, California Quality Series, Florida Series, and North Carolina Series, fees incurred under the Plan aggregated to $18,540, $29,460, $42,760, and $27,552, respectively, or 0.10%, 0.10%, 0.25%, and 0.25%, respectively, per annum of average daily net assets of Class A shares.

Under the Plan, with respect to Class C shares and Class D shares, service organizations can enter into agreements with the Distributor and receive continuing fees for providing personal services and/or the maintenance of shareholder accounts of up to 0.25% on an annual basis of the average daily net assets of the Class C and Class D shares for which the organizations are responsible, and fees for providing other distribution assistance of up to 0.75% on an annual basis of such average daily net assets. Such fees are paid monthly by the Trust to the Distributor pursuant to the Plan. For the six months ended March 31, 2004, fees incurred under the Plan equivalent to 1% per annum of the average daily net assets of Class C and Class D shares were as follows:

Series	Class C	Class D
California High-Yield	$16,703	$18,755
California Quality	27,109	6,857
Florida	24,448	7,714
North Carolina	15,715	3,999

The Distributor is entitled to retain any CDSC imposed on certain redemptions of Class A, Class C and Class D shares. For the six months ended March 31, 2004, such charges amounted to $1,184 for California High-Yield Series, $1,209 for California Quality Series, $1,553 for Florida Series, and $480 for North Carolina Series.

Seligman Services, Inc., an affiliate of the Manager, is eligible to receive commissions from certain sales of Trust shares, as well as distribution and service fees pursuant to the Plan. For the six months ended March 31, 2004, Seligman Services, Inc. received commissions from the sales of shares of each Series and distribution and service fees, pursuant to the Plan, as follows:

Series	Commissions	Distribution and Service Fees
California High-Yield	$850	$2,266
California Quality	665	1,792
Florida	417	2,145
North Carolina	—	1,188

22

Notes to Financial Statements(Unaudited)

Seligman Data Corp., which is owned by certain associated investment companies, charged each Series at cost for shareholder account services in accordance with a methodology approved by the Trust’s trustees as follows:

Series
California High-Yield	$47,948
California Quality	58,698
Florida	41,007
North Carolina	24,352

Costs of Seligman Data Corp. directly attributable to a Series were charged to that Series. The remaining charges were allocated to each Series by Seligman Data Corp. pursuant to a formula based on each Series’ net assets, shareholder transaction volume and number of shareholder accounts.

The Trust and certain other associated investment companies (together, the "Guarantors") have severally but not jointly guaranteed the performance and observance of all the terms and conditions of two leases entered into by Seligman Data Corp., including the payment of rent by Seligman Data Corp. (the "Guaranties"). The leases and the Guaranties expire in September 2008 and January 2009. The obligation of the Trust to pay any amount due under either Guaranty is limited to a specified percentage of the full amount, which generally is based on the Trust’s percentage of the expenses billed by Seligman Data Corp. to all Guarantors in the preceding calendar quarter. As of March 31, 2004, the Trust’s potential obligation under the Guaranties is $71,300. As of March 31, 2004, no event has occurred which would result in the Trust becoming liable to make any payme nt under a Guaranty. Each Series would bear a portion of any payments made by the Trust under the Guaranties. A portion of rent paid by Seligman Data Corp. is charged to the Trust as part of Seligman Data Corp.’s shareholder account services cost.

Certain officers and trustees of the Trust are officers or directors of the Manager, the Distributor, Seligman Services, Inc., and/or Seligman Data Corp.

The Trust has a compensation agreement under which trustees who receive fees may elect to defer receiving such fees. Trustees may elect to have their deferred fees accrue interest or earn a return based on the performance of selected Series of the Trust or other funds in the Seligman Group of Investment Companies. Deferred fees and related accrued earnings are not deductible for federal income tax purposes until such amounts are paid. The cost of such fees and earnings/losses accrued thereon is included in trustees’ fees and expenses, and the accumulated balances thereof at March 31, 2004, are included in accrued expenses and other liabilities as follows:

Series
California High-Yield	$10,397
California Quality	10,597
Florida	6512
North Carolina	5,415

5. Committed Line of Credit — The Trust is a participant in a joint $445 million committed line of credit that is shared by substantially all open nd funds in the Seligman Group of Investment Companies. Each Series’ borrowings are limited to 10% of its net assets. Borrowings pursuant to the credit facility are subject to interest at a per annum rate equal to the overnight federal funds rate plus 0.50%. Each Series incurs a commitment fee of 0.10% per annum on its share of the unused portion of the credit facility. The credit facility may be drawn upon only for temporary purposes and is subject to certain other customary restrictions. The credit facility commitment expires in June 2004, but is renewable annually with the consent of the participating banks. For the six months ended March 31, 2004, the Trust did not borrow from the credit facility.

23

Notes to Financial Statements (Unaudited)

6.

Capital Loss Carryforward — At September 30, 2003, the California Quality Series had a net capital loss carryforward for federal income tax purposes of $19,034, expiring in 2011, which is available for offset against future taxable net capital gains. Accordingly, no capital gain distributions are expected to be paid to shareholders of this Series until net capital gains have been realized in excess of the available capital loss carryforward

7.

Transactions in Shares of Beneficial Interest — Transactions in Shares of Beneficial Interest were as follows:

California High-Yield Series

	Six Months ended 3/31/04						Year Ended 9/30/03
Class A		Shares			Amount			Shares			Amount
Net proceeds from sales of shares		27,182		$	179,733			124,441		$	818,547
Investment of dividends		71,390			473,838			157,158			1,034,298
Exchanged from associated funds		20,507			135,072			2,378,200			15,699,417
Shares issued in payment of gain distributions		5,700			37,619			23,350			152,707
Total		124,779			826,262			2,683,149			17,704,969
Cost of shares repurchased		(565,843	)		(3,745,600	)		(818,165	)		(5,389,247	)
Exchanged into associated funds		(24,762	)		(165,228	)		(3,546,399	)		(23,415,548	)
Total		(590,605	)		(3,910,828	)		(4,364,564	)		(28,804,795	)
Decrease		(465,826	)	$	(3,084,566	)		(1,681,415	)	$	(11,099,826	)
Class C		Shares			Amount			Shares			Amount
Net proceeds from sales of shares		7,233		$	47,527			87,104		$	579,047
Investment of dividends		6,356			42,213			12,010			79,055
Exchanged from associated funds		—			—			145			980
Shares issued in payment of gain distributions		618			4,087			1,861			12,188
Total		14,207			93,827			101,120			671,270
Cost of shares repurchased		(73,611	)		(489,371	)		(84,856	)		(561,520	)
Exchanged into associated funds		—			—			(654	)		(4,386	)
Total		(73,611	)		(489,371	)		(85,510	)		(565,906	)
Increase (decrease)		(59,404	)	$	(395,544	)		15,610		$	105,364
Class D		Shares			Amount			Shares			Amount
Net proceeds from sales of shares		1,029		$	6,900			20,466		$	134,798
Investment of dividends		6,766			44,858			19,706			129,780
Exchanged from associated funds		1,501			9,917			10,918			71,663
Shares issued in payment of gain distributions		609			4,022			2,700			17,684
Total		9,905			65,697			53,790			353,925
Cost of shares repurchased		(48,375	)		(320,498	)		(98,831	)		(649,684	)
Exchanged into associated funds		(178,692	)		(1,172,721	)		(25,719	)		(167,967	)
Total		(227,067	)		(1,493,219	)		(124,550	)		(817,651	)
Decrease		(217,162	)	$	(1,427,522	)		(70,760	)	$	(463,726	)

24

Notes to Financial Statements(Unaudited)

California Quality Series
	Six Months ended 3/31/04					Year Ended 9/30/03
Class A	Shares			Amount		Shares			Amount
Net proceeds from sales of shares	55,026		$	376,139		454,386		$	3,116,697
Investment of dividends	91,155			631,037		197,996			1,362,841
Exchanged from associated funds	11,540			79,702		203,496			1,398,476
Total	157,721			1,086,878		855,878			5,878,014
Cost of shares repurchased	(930,620	)		(6,435,360	)	(2,189,530	)		(15,075,151	)
Exchanged into associated funds	(45,864	)		(318,555	)	(330,355	)		(2,269,490	)
Total	(976,484	)		(6,753,915	)	(2,519,885	)		(17,344,641	)
Decrease	(818,763	)	$	(5,667,037	)	(1,664,007	)	$	(11,466,627	)
Class C	Shares			Amount		Shares			Amount
Net proceeds from sales of shares	31,143		$	215,380		265,193		$	1,852,962
Investment of dividends	6,103			42,092		12,819			87,959
Exchanged from associated funds	539			3,717		33,331			228,840
Total	37,785			261,189		311,343			2,169,761
Cost of shares repurchased	(135,317	)		(928,942	)	(118,463	)		(807,896	)
Exchanged into associated funds	(8,583	)		(59,133	)	(72,952	)		(497,851	)
Total	(143,900	)		(988,075	)	(191,415	)		(1,305,747	)
Increase (decrease)	(106,115	)	$	(726,886	)	119,928		$	864,014
Class D	Shares			Amount		Shares			Amount
Net proceeds from sales of shares	117		$	800		642		$	4,400
Investment of dividends	1,573			10,844		3,975			27,261
Exchanged from associated funds	3,634			25,000		7,117			49,421
Total	5,324			36,644		11,734			81,082
Cost of shares repurchased	(38,172	)		(262,407	)	(66,877	)		(454,221	)
Exchanged into associated funds	—			—		(3,098	)		(21,003	)
Total	(38,172	)		(262,407	)	(69,975	)		(475,224	)
Decrease	(32,848	)	$	(225,763	)	(58,241	)	$	(394,142	)

25

Notes to Financial Statements(Unaudited)

Florida Series
	Six Months ended 3/31/04					Year Ended 9/30/03
Class A	Shares			Amount		Shares			Amount
Net proceeds from sales of shares	297,184		$	2,400,219		330,311		$	2,643,315
Investment of dividends	44,374			358,439		82,805			663,209
Exchanged from associated funds	36,188			293,048		91,095			728,063
Shares issued in payment of gain distributions	5,773			46,453		3,134			24,817
Total	383,519			3,098,159		507,345			4,059,404
Cost of shares repurchased	(225,031	)		(1,809,367	)	(896,691	)		(7,170,449	)
Exchanged into associated funds	(6,020	)		(48,259	)	(27,024	)		(214,892	)
Total	(231,051	)		(1,857,626	)	(923,715	)		(7,385,341	)
Increase (decrease)	152,468		$	1,240,533		(416,370	)	$	(3,325,937	)
Class C	Shares			Amount		Shares			Amount
Net proceeds from sales of shares	109,023		$	879,380		183,875		$	1,476,270
Investment of dividends	6,309			51,089		8,646			69,506
Exchanged from associated funds	—			—		90,205			720,768
Shares issued in payment of gain distributions	803			6,480		326			2,587
Total	116,135			936,949		283,052			2,269,131
Cost of shares repurchased	(94,131	)		(763,778	)	(87,747	)		(708,656	)
Exchanged into associated funds	(2,236	)		(18,049	)	(90,461	)		(722,729	)
Total	(96,367	)		(781,827	)	(178,208	)		(1,431,385	)
Increase	19,768		$	155,122		104,844		$	837,746
Class D	Shares			Amount		Shares			Amount
Net proceeds from sales of shares	6,172		$	49,995		29,901		$	239,236
Investment of dividends	1,678			13,579		3,324			26,653
Exchanged from associated funds	3,625			29,258		14,714			117,801
Shares issued in payment of gain distributions	223			1,794		67			535
Total	11,698			94,626		48,006			384,225
Cost of shares repurchased	(12,526	)		(100,786	)	(78,115	)		(624,179	)
Exchanged into associated funds	(239	)		(1,928	)	(11,394	)		(92,500	)
Total	(12,765	)		(102,714	)	(89,509	)		(716,679	)
Decrease	(1,067	)	$	(8,088	)	(41,503	)	$	(332,454	)

26

Notes to Financial Statements(Unaudited)

North Carolina Series
	Six Months ended 3/31/04						Year Ended 9/30/03
Class A	Shares			Amount			Shares			Amount
Net proceeds from sales of shares		10,401		$	85,024			366,967		$	2,960,033
Investment of dividends		32,387			263,415			65,938			531,292
Exchanged from associated funds		62			500			511,231			4,106,760
Shares issued in payment of gain distributions		8,868			71,813			10,034			79,874
Total		51,718			420,752			954,170			7,677,959
Cost of shares repurchased		(195,513	)		(1,589,664	)		(628,493	)		(5,067,401	)
Exchanged into associated funds		(2,779	)		(22,600	)		(626,979	)		(5,052,939	)
Total		(198,292	)		(1,612,264	)		(1,255,472	)		(10,120,340	)
Decrease		(146,574	)	$	(1,191,512	)		(301,302	)	$	(2,442,381	)
Class C		Shares			Amount			Shares			Amount
Net proceeds from sales of shares		29,522		$	238,490			87,410		$	703,100
Investment of dividends		2,917			23,672			5,449			43,875
Exchanged from associated funds		31,478			251,507			3,641			29,724
Shares issued in payment of gain distributions		1,544			12,493			1,375			10,933
Total		65,461			526,162			97,875			787,632
Cost of shares repurchased		(19,947	)		(163,200	)		(80,597	)		(651,703	)
Exchanged into associated funds		(4,094	)		(33,076	)		(37,696	)		(302,397	)
Total		(24,041	)		(196,276	)		(118,293	)		(954,100	)
Increase (decrease)		41,420		$	329,886			(20,418	)	$	(166,468	)
Class D		Shares			Amount			Shares			Amount
Net proceeds from sales of shares		2,936		$	23,680			10,332		$	82,517
Investment of dividends		900			7,309			1,648			13,263
Exchanged from associated funds		—			—			3,251			26,007
Shares issued in payment of gain distributions		307			2,479			294			2,336
Total		4,143			33,468			15,525			124,123
Cost of shares repurchased		(9,834	)		(79,645	)		(29,233	)		(237,825	)
Decrease		(5,691	)	$	(46,177	)		(13,708	)	$	(113,702	)

27

Notes to Financial Statements(Unaudited)

8.	Other Matters — The Manager conducted an extensive internal review in response to recent developments regarding disruptive or illegal trading practices within the mutual fund industry. As of September 2003, the Manager had one arrangement that permitted frequent trading in the Seligman registered investment companies ("Seligman Funds"). This arrangement was in the process of being closed down by the Manager before the first proceedings relating to trading practices within the mutual fund industry were publicly announced. Based on a review of the Manager’s records for 2001 through 2003, the Manager identified three other arrangements that had permitted frequent trading in the Seligman Funds. All three had already been terminated prior to the end of September 2002. The Securities and Exchange Commission (the "SEC"), the NASD and the Attorney Ge neral of the State of New York also are reviewing these matters.
	In connection with the Manager’s internal review, the Manager has also reviewed its practice of placing some of the Seligman Funds’ orders to buy and sell portfolio securities with brokerage firms in recognition of their sales of Seligman Funds. This practice is permissible when done properly; however, the Manager believes that it may have violated applicable requirements for certain of such orders as a result of compensation arrangements the Manager had with certain brokerage firms. The Manager discontinued this practice entirely in October 2003. The Manager is confident that the execution of all such orders was consistent with its best execution obligations and that the Seligman Funds did not pay higher brokerage commissions than they would otherwise have paid for comparable transactions. The Manager has also responded fully to information requests from the SEC and the NASD relating to the Manager’s use of revenue sharing and fund portfolio brokerage commissions and will continue to provide additional information if, and as, requested.
	The results of the Manager’s internal reviews were presented to the Independent Directors of the Seligman Funds. In order to resolve matters with the Independent Directors relating to the arrangements that permitted frequent trading, the Manager has made payments to three funds and has agreed to waive a portion of its management fee with respect to another fund. In order to resolve matters with the Independent Directors with regard to portfolio brokerage commissions, the Manager has made payments to each of twenty-four funds in an amount equal to the commissions paid by each such fund during the period from 1998 through 2003 to certain brokerage firms in recognition of sales of fund shares.
	Neither Seligman Municipal Series Trust nor any of its Series was affected by either of the circumstances described above, and accordingly, they will not receive any payments from the Manager.

28

28

Financial Highlights(Unaudited)

The tables below are intended to help you understand the financial performance of each Class of each Series for the past five and one-half years or from its inception if less than five and one-half years. Certain information reflects financial results for a single share of a Class that was held throughout the periods shown. Per share amounts are calculated using average shares outstanding during the period. "Total return" shows the rate that you would have earned (or lost) on an investment in each Class, assuming you reinvested all your dividend and capital gain distributions. Total returns do not reflect any sales charges or taxes investors may incur on distributions or on the redemption of shares, and are not annualized for periods of less than one year.

California High-Yield Series

Class A
				Year Ended September 30,
		Six Months Ended  3/31/04			2003			2002Ø			2001			2000			1999
Per Share Data:
Net Asset Value, Beginning of Period	$	6.59		$	6.74		$	6.63		$	6.33		$	6.28		$	6.80
Income from Investment Operations:
Net investment income		0.14			0.28			0.29			0.30			0.32			0.31
Net realized and unrealized gain (loss) on investments		0.11			(0.12	)		0.13			0.30			0.13			(0.50	)
Total from Investment Operations		0.25			0.16			0.42			0.60			0.45			(0.19	)
Less Distributions:
Dividends from net investment income		(0.14	)		(0.28	)		(0.29	)		(0.30	)		(0.32	)		(0.31	)
Distributions from net realized capital gain		(0.01	)		(0.03	)		(0.02	)		—			(0.08	)		(0.02	)
Total Distributions		(0.15	)		(0.31	)		(0.31	)		(0.30	)		(0.40	)		(0.33	)
Net Asset Value, End of Period	$	6.69		$	6.59		$	6.74		$	6.63		$	6.33		$	6.28
Total Return:		3.81	%		2.48	%		6.50	%		9.74	%		7.49	%		(2.82)	%

(Continued on page 30.)

---------------

See footnotes on page 41.

29

Financial Highlights (Unaudited)

California High-Yield Series

Class A (continued)

				Year Ended September 30,
		Six Months  Ended 3/31/04			2003			2002Ø			2001			2000			1999
Ratios/Supplemental Data:
Net assets, end of period (000s omitted)	$	36,301		$	38,798		$	51,011		$	50,239		$	47,915		$	57,807
Ratio of expenses to average net assets		0.89	%†		0.88	%		0.84	%		0.70	%		0.71			0.84	%
Ratio of net investment income to average net assets		4.33	%†		4.24	%		4.41	%		4.69	%		5.23	%		4.71	%
Portfolio turnover rate		—			4.43	%		11.72	%		2.95	%		5.20	%		27.61	%
Without management fee waiver:**
Ratio of expenses to average net assets		0.99	%†		0.98	%		0.94	%		0.95	%		0.91	%
Ratio of net investment income to average net assets		4.23	%†		4.14	%		4.31	%		4.44	%		5.04	%

---------------

See footnotes on page 41.

30

Financial Highlights (Unaudited)

California High-Yield Series
Class C
				Year Ended September 30,
		Six Months Ended 3/31/04			2003			2002Ø			2001			2000			5/27/99* to 9/30/99
Per Share Data:
Net Asset Value, Beginning of Period	$	6.60		$	6.75		$	6.64		$	6.34		$	6.29		$	6.62
Income from Investment Operations:
Net investment income		0.11			0.22			0.23			0.25			0.27			0.09
Net realized and unrealized gain (loss) on investments		0.11			(0.12	)		0.13			0.30			0.13			(0.33	)
Total from Investment Operations		0.22			0.10			0.36			0.55			0.40			(0.24	)
Less Distributions:
Dividends from net investment income		(0.11	)		(0.22	)		(0.23	)		(0.25	)		(0.27	)		(0.09	)
Distributions from net realized capital gain		(0.01	)		(0.03	)		(0.02	)		—			(0.08	)		—
Total Distributions		(0.12	)		(0.25	)		(0.25	)		(0.25	)		(0.35	)		(0.09	)
Net Asset Value, End of Period	$	6.70		$	6.60		$	6.75		$	6.64		$	6.34		$	6.29
Total Return:		3.34	%		1.56	%		5.57	%		8.74	%		6.53	%		(3.79	)%
Ratios/Supplemental Data:
Net assets, end of period (000s omitted)	$	3,140		$	3,482		$	3,457		$	3,293		$	1,546		$	1,041
Ratio of expenses to average net assets		1.79	%		1.78	%		1.74	%		1.60	%		1.61	%		1.72	%†
Ratio of net investment income to average net assets		3.43	%†		3.34	%		3.51	%		3.79	%		4.33	%		3.95	%†
Portfolio turnover rate		—			4.43	%		11.72	%		2.95	%		5.20	%		27.61	%††
Without management fee waiver:**
Ratio of expenses to average net assets		1.89	%†		1.88	%		1.84	%		1.85	%		1.81	%
Ratio of net investment income to average net assets		3.33	%†		3.24	%		3.41	%		3.54	%		4.13	%

---------------

See footnotes on page 41.

31

Financial Highlights(Unaudited)

California High-Yield Series
Class D
				Year Ended September 30,
		Six Months Ended 3/31/04			2003			2002Ø			2001			2000			1999
Per Share Data:
Net Asset Value, Beginning of Period	$	6.60		$	6.75		$	6.64		$	6.34		$	6.29		$	6.80
Income from Investment Operations:
Net investment income		0.11			0.22			0.23			0.25			0.27			0.25
Net realized and unrealized gain (loss) on investments		0.11			(0.12	)		0.13			0.30			0.13			(0.49	)
Total from Investment Operations		0.22			0.10			0.36			0.55			0.40			(0.24	)
Less Distributions:
Dividends from net investment income		(0.11	)		(0.22	)		(0.23	)		(0.25	)		(0.27	)		(0.25	)
Distributions from net realized capital gain		(0.01	)		(0.03	)		(0.02	)		—			(0.08	)		(0.02	)
Total Distributions		(0.12	)		(0.25	)		(0.25	)		(0.25	)		(0.35	)		(0.27	)
Net Asset Value, End of Period	$	6.70		$	6.60		$	6.75		$	6.64		$	6.34		$	6.29
Total Return:		3.34	%		1.56	%		5.57	%		8.74	%		6.53	%		(3.54	)%
Ratios/Supplemental Data:
Net assets, end of period (000s omitted)	$	3,454		$	4,832		$	5,419		$	5,938		$	5,880		$	7,658
Ratio of expenses to average net assets		1.79	%†		1.78	%		1.74	%		1.60	%		1.61	%		1.74	%
Ratio of net investment income to average net assets		3.43	%†		3.34	%		3.51	%		3.79	%		4.33	%		3.81	%
Portfolio turnover rate		—			4.43	%		11.72	%		2.95	%		5.20	%		27.61	%
Without management fee waiver:**
Ratio of expenses to average net assets		1.89	%†		1.88	%		1.84	%		1.85	%		1.81	%
Ratio of net investment income to average net assets		3.33	%†		3.24	%		3.41	%		3.54	%		4.13	%

---------------

See footnotes on page 41.

32

Financial Highlights(Unaudited)

California Quality Series

Class A

				Year Ended September 30,
		Six Months Ended 3/31/04			2003			2002Ø			2001			2000			1999
Per Share Data:
Net Asset Value, Beginning of Period	$	6.88		$	7.04		$	6.90		$	6.53		$	6.42		$	7.21
Income from Investment Operations:
Net investment income		0.14			0.27			0.29			0.30			0.30			0.31
Net realized and unrealized gain (loss) on investments		0.06			(0.16	)		0.20			0.39			0.18			(0.56	)
Total from Investment Operations		0.20			0.11			0.49			0.69			0.48			(0.25	)
Less Distributions:
Dividends from net investment income		(0.14	)		(0.27	)		(0.29	)		(0.30	)		(0.30	)		(0.31	)
Distributions from net realized capital gain		—			—			(0.06	)		(0.02	)		(0.07	)		(0.23	)
Total Distributions		(0.14	)		(0.27	)		(0.35	)		(0.32	)		(0.37	)		(0.54	)
Net Asset Value, End of Period	$	6.94		$	6.88		$	7.04		$	6.90		$	6.53		$	6.42
Total Return:		2.90	%		1.63	%		7.29	%		10.72	%		7.95	%		(3.68	)%
Ratios/Supplemental Data:
Net assets, end of period (000s omitted)	$	56,413		$	61,566		$	74,713		$	74,585		$	70,905		$	74,793
Ratio of expenses to average net assets		0.93	%†		0.93	%		0.87	%		0.87	%		0.87	%		0.82	%
Ratio of net investment income to average net assets		4.06	%†		3.96	%		4.23	%		4.42	%		4.83	%		4.56	%
Portfolio turnover rate		—			1.43	%		6.40	%		19.83	%		1.33	%		20.24	%

---------------

See footnotes on page 41.

33

Financial Highlights(Unaudited)

California Quality Series

Class C

				Year Ended September 30,
	Six Months Ended 3/31/04				2003			2002Ø			2001			2000			5/27/99* to 9/30/99
Per Share Data:
Net Asset Value, Beginning of Period	$	6.85		$	7.01		$	6.88		$	6.51		$	6.40		$	6.75
Income from Investment Operations:
Net investment income		0.11			0.21			0.23			0.24			0.25			0.09
Net realized and unrealized gain (loss) on investments		0.06			(0.16	)		0.18			0.39			0.18			(0.35	)
Total from Investment Operations		0.17			0.05			0.41			0.63			0.43			(0.26	)
Less Distributions:
Dividends from net investment income		(0.11	)		(0.21	)		(0.22	)		(0.24	)		(0.25	)		(0.09	)
Distributions from net realized capital gain		—			—			(0.06	)		(0.02	)		(0.07	)		—
Total Distributions		(0.11	)		(0.21	)		(0.28	)		(0.26	)		(0.32	)		(0.09	)
Net Asset Value, End of Period	$	6.91		$	6.85		$	7.01		$	6.88		$	6.51		$	6.40
Total Return:		2.45	%		0.72	%		6.20	%		9.81	%		7.00	%		(4.04	)%
Ratios/Supplemental Data:
Net assets, end of period (000s omitted)	$	5,088		$	5,772		$	5,067		$	1,952		$	204		$	10
Ratio of expenses to average net assets		1.83	%†		1.83	%		1.77	%		1.77	%		1.77	%		1.72	%†
Ratio of net investment income to average net assets		3.16	%†		3.06	%		3.33	%		3.52	%		3.93	%		3.80	%†
Portfolio turnover rate		—			1.43	%		6.40	%		19.83	%		1.33	%		20.24	%††

---------------

See footnotes on page 41.

34

Financial Highlights (Unaudited)

California Quality Series

Class D

				Year Ended September 30,
		Six Months Ended 3/31/04			2003			2002Ø			2001			2000			1999
Per Share Data:
Net Asset Value, Beginning of Period	$	6.85		$	7.01		$	6.88		$	6.51		$	6.40		$	7.19
Income from Investment Operations:
Net investment income		0.11			0.21			0.23			0.24			0.25			0.25
Net realized and unrealized gain (loss) on investments		0.06			(0.16	)		0.18			0.39			0.18			(0.56	)
Total from Investment Operations		0.17			0.05			0.41			0.63			0.43			(0.31	)
Less Distributions:
Dividends from net investment income		(0.11	)		(0.21	)		(0.22	)		(0.24	)		(0.25	)		(0.25	)
Distributions from net realized capital gain		—			—			(0.06	)		(0.02	)		(0.07	)		(0.23	)
Total Distributions		(0.11	)		(0.21	)		(0.28	)		(0.26	)		(0.32	)		(0.48	)
Net Asset Value, End of Period	$	6.91		$	6.85		$	7.01		$	6.88		$	6.51		$	6.40
Total Return:		2.45	%		0.72	%		6.20	%		9.81	%		7.00	%		(4.58	)%
Ratios/Supplemental Data:
Net assets, end of period (000s omitted)	$	1,298		$	1,512		$	1,956		$	3,344		$	3,666		$	4,286
Ratio of expenses to average net assets		1.83	%†		1.83	%		1.77	%		1.77	%		1.77	%		1.72	%
Ratio of net investment income to average net assets		3.16	%†		3.06	%		3.33	%		3.52	%		3.93	%		3.66	%
Portfolio turnover rate		—			1.43	%		6.40	%		19.83	%		1.33	%		20.24	%

---------------

See footnotes on page 41.

35

Financial Highlights (Unaudited)

Florida Series

Class A

				Year Ended September 30,
	Six Months Ended 3/31/04				2003			2002Ø			2001			2000			1999
Per Share Data:
Net Asset Value, Beginning of Period	$	8.08		$	8.08		$	7.88		$	7.48		$	7.41		$	8.07
Income from Investment Operations:
Net investment income		0.16			0.32			0.34			0.36			0.37			0.34
Net realized and unrealized gain (loss) on investments		0.02			0.01			0.20			0.43			0.11			(0.61	)
Total from Investment Operations		0.18			0.33			0.54			0.79			0.48			(0.27	)
Less Distributions:
Dividends from net investment income		(0.16	)		(0.32	)		(0.34	)		(0.36	)		(0.37	)		(0.34	)
Distributions from net realized capital gain		(0.02	)		(0.01	)		—			(0.03	)		(0.04	)		(0.05	)
Total Distributions		(0.18	)		(0.33	)		(0.34	)		(0.39	)		(0.41	)		(0.39	)
Net Asset Value, End of Period	$	8.08		$	8.08		$	8.08	$		7.88		$	7.48		$	7.41
Total Return:		2.19	%		4.16	%		7.08	%		10.78	%		6.78	%		(3.42	)%
Ratios/Supplemental Data:
Net assets, end of period (000s omitted)	$	35,348		$	34,131		$	37,513	$		36,695		$	34,949		$	37,606
Ratio of expenses to average net assets		0.98	%†		1.00	%		0.94	%		0.70	%		0.72	%		1.03	%
Ratio of net investment income to average net assets		4.00	%†		3.98	%		4.37	%		4.70	%		5.08	%		4.38	%
Portfolio turnover rate		—			12.51	%		10.19	%		9.57	%		12.68	%		18.31	%
Without management fee waiver:**
Ratio of expenses to average net assets		1.13	%†		1.15	%		1.09	%		1.08	%		1.09	%
Ratio of net investment income to average net assets		3.85	%†		3.83	%		4.22	%		4.32	%		4.71	%

---------------

See footnotes on page 41.

36

Financial Highlights (Unaudited)

Florida Series
Class C
				Year Ended September 30,
		Six Months Ended 3/31/04			2003			2002Ø			2001			2000			5/27/99* to 9/30/99
Per Share Data:
Net Asset Value, Beginning of Period	$	8.09		$	8.10		$	7.90		$	7.50		$	7.43		$	7.83
Income from Investment Operations:
Net investment income		0.13			0.26			0.29			0.31			0.32			0.10
Net realized and unrealized gain (loss) on investments		0.02			—			0.19			0.43			0.11			(0.40	)
Total from Investment Operations		0.15			0.26			0.48			0.74			0.43			(0.30	)
Less Distributions:
Dividends from net investment income		(0.13	)		(0.26	)		(0.28	)		(0.31	)		(0.32	)		(0.10	)
Distributions from net realized capital gain		(0.02	)		(0.01	)		—			(0.03	)		(0.04	)		—
Total Distributions		(0.15	)		(0.27	)		(0.28	)		(0.34	)		(0.36	)		(0.10	)
Net Asset Value,End of Period	$	8.09		$	8.09		$	8.10		$	7.90		$	7.50		$	7.43
Total Return:		1.80	%		3.24	%		6.26	%		9.97	%		5.98	%		(3.96	)%
Ratios/Supplemental Data:
Net assets, end of period (000s omitted)	$	4,845		$	4,686		$	3,839		$	2,274		$	699		$	254
Ratio of expenses to average net assets		1.73	%†		1.75	%		1.69	%		1.45	%		1.47	%		1.78	%†
Ratio of net investment income to average net assets		3.25	%†		3.23	%		3.62	%		3.95	%		4.33	%		3.82	%†
Portfolio turnover rate		—			12.51	%		10.19	%		9.57	%		12.68	%		18.31	%††
Without management fee waiver:**
Ratio of expenses to average net assets		1.88	%†		1.90	%		1.84	%		1.83	%		1.84	%
Ratio of net investment income to average net assets		3.10	%†		3.08	%		3.47	%		3.57	%		3.96	%
_________ See footnotes on page 41.

37

Financial Highlights(Unaudited)

Florida Series

Class D

				Year Ended September 30,
		Six Months Ended 3/31/04			2003			2002Ø			2001			2000			1999
Per Share Data:
Net Asset Value, Beginning of Period	$	8.10		$	8.10		$	7.90		$	7.50		$	7.43		$	8.08
Income from Investment Operations:
Net investment income		0.13			0.26			0.29			0.31			0.32			0.28
Net realized and unrealized gain (loss) on investments		0.01			0.01			0.19			0.43			0.11			(0.60	)
Total from Investment Operations		0.14			0.27			0.48			0.74			0.43			(0.32	)
Less Distributions:
Dividends from net investment income		(0.13	)		(0.26	)		(0.28	)		(0.31	)		(0.32	)		(0.28	)
Distributions from net realized capital gain		(0.02	)		(0.01	)		—			(0.03	)		(0.04	)		(0.05	)
Total Distributions		(0.15	)		(0.27	)		(0.28	)		(0.34	)		(0.36	)		(0.33	)
Net Asset Value, End of Period	$	8.09		$	8.10		$	8.10		$	7.90		$	7.50		$	7.43
Total Return:		1.67	%		3.37	%		6.26	%		9.97	%		5.98	%		(4.01	)%
Ratios/Supplemental Data:
Net assets, end of period (000s omitted)	$	1,558		$	1,567		$	1,904		$	1,811		$	1,463		$	1,843
Ratio of expenses to average net assets		1.73	%†		1.75	%		1.69	%		1.45	%		1.47	%		1.78	%
Ratio of net investment income to average net assets		3.25	%†		3.23	%		3.62	%		3.95	%		4.33	%		3.63	%
Portfolio turnover rate		—			12.51	%		10.19	%		9.57	%		12.68	%		18.31	%
Without management fee waiver:**
Ratio of expenses to average net assets		1.88	%†		1.90	%		1.84	%		1.83	%		1.84	%
Ratio of net investment income to average net assets		3.10	%†		3.08	%		3.47	%		3.57	%		3.96	%

---------------

See footnotes on page 41.

38

Financial Highlights (Unaudited)

North Carolina Series

Class A

				Year Ended September 30,
		Six Months Ended 3/31/04			2003			2002Ø			2001			2000			1999
Per Share Data:
Net Asset Value, Beginning of Period	$	8.14		$	8.19		$	7.89		$	7.54		$	7.59		$	8.30
Income from Investment Operations:
Net investment income		0.14			0.29			0.32			0.33			0.34			0.35
Net realized and unrealized gain (loss) on investments		0.03			(0.01	)		0.31			0.37			0.05			(0.59	)
Total from Investment Operations		0.17			0.28			0.63			0.70			0.39			(0.24	)
Less Distributions:
Dividends from net investment income		(0.14	)		(0.29	)		(0.32	)		(0.33	)		(0.34	)		(0.35	)
Distributions from net realized capital gain		(0.03	)		(0.04	)		(0.01	)		(0.02	)		(0.10	)		(0.12	)
Total Distributions		(0.17	)		(0.33	)		(0.33	)		(0.35	)		(0.44	)		(0.47	)
Net Asset Value, End of Period	$	8.14		$	8.14		$	8.19		$	7.89		$	7.54		$	7.59
Total Return:		2.19	%		3.51	%		8.21	%		9.52	%		5.36	%		(3.07)	%
Ratios/Supplemental Data:
Net assets, end of period (000s omitted)	$	21,570		$	22,778		$	25,386		$	25,737		$	24,987		$	27,224
Ratio of expenses to average net assets		1.17	%†		1.19	%		1.11	%		1.13	%		1.13	%		1.06	%
Ratio of net investment income to average net assets		3.57	%†		3.65	%		4.11	%		4.29	%		4.63	%		4.38	%
Portfolio turnover rate		—			10.00	%		7.96	%		5.61	%		11.96	%		1.52	%

---------------

See footnotes on page 41.

39

Financial Highlights (Unaudited)

North Carolina Series
Class C
					Year Ended September 30,
		Six Months Ended 3/31/04				2003			2002Ø			2001			2000			5/27/99* to 9/30/99
Per Share Data:
Net Asset Value, Beginning of Period	$	8.13		$	8.18			$	7.88		$	7.54		$	7.59		$	7.97
Income from Investment Operations:
Net investment income		0.11			0.23				0.27			0.27			0.29			0.10
Net realized and unrealized gain (loss) on investments		0.03			(0.01		)		0.30			0.36			0.05			(0.38	)
Total from Investment Operations		0.14			0.22				0.57			0.63			0.34			(0.28	)
Less Distributions:
Dividends from net investment income		(0.11	)		(0.23		)		(0.26	)		(0.27	)		(0.29	)		(0.10	)
Distributions from net realized capital gain		(0.03	)		(0.04		)		(0.01	)		(0.02	)		(0.10	)		—
Total Distributions		(0.14	)		(0.27		)		(0.27	)		(0.29	)		(0.39	)		(0.10	)
Net Asset Value, End of Period	$	8.13		$	8.13			$	8.18		$	7.88		$	7.54		$	7.59
Total Return:		1.81	%		2.74		%		7.41	%		8.59	%		4.58	%		(3.62)	%
Ratios/Supplemental Data:
Net assets, end of period (000s omitted)	$	3,112		$	2,778			$	2,962		$	2,049		$	544		$	10
Ratio of expenses to average net assets		1.92	%†		1.94		%		1.86	%		1.88	%		1.88	%		1.80	%†
Ratio of net investment income to average net assets		2.82	%†		2.90		%		3.36	%		3.54	%		3.88	%		3.77	%†
Portfolio turnover rate		—			10.00		%		7.96	%		5.61	%		11.96	%		1.52	%††
_________ See footnotes on page 41.

40

Financial Highlights (Unaudited)

North Carolina Series

Class D

				Year Ended September 30,
		Six Months Ended 3/31/04			2003			2002Ø			2001			2000			1999
Per Share Data:
Net Asset Value, Beginning of Period	$	8.13		$	8.18		$	7.88		$	7.54		$	7.59		$	8.30
Income from Investment Operations:
Net investment income		0.11			0.23			0.27			0.27			0.29			0.29
Net realized and unrealized gain (loss) on investments		0.03			(0.01	)		0.30			0.36			0.05			(0.59	)
Total from Investment Operations		0.14			0.22			0.57			0.63			0.34			(0.30	)
Less Distributions:
Dividends from net investment income		(0.11	)		(0.23	)		(0.26	)		(0.27	)		(0.29	)		(0.29	)
Distributions from net realized capital gain		(0.03	)		(0.04	)		(0.01	)		(0.02	)		(0.10	)		(0.12	)
Total Distributions		(0.14	)		(0.27	)		(0.27	)		(0.29	)		(0.39	)		(0.41	)
Net Asset Value, End of Period	$	8.13		$	8.13		$	8.18		$	7.88		$	7.54		$	7.59
Total Return:		1.81	%		2.74	%		7.41	%		8.59	%		4.58	%		(3.79	)%
Ratios/Supplemental Data:
Net assets, end of period (000s omitted)	$	777		$	824		$	941		$	1,514		$	1,250		$	1,682
Ratio of expenses to average net assets		1.92	%†		1.94	%		1.86	%		1.88	%		1.88	%		1.81	%
Ratio of net investment income to average net assets		2.82	%†		2.90	%		3.36	%		3.54	%		3.88	%		3.63	%
Portfolio turnover rate		—			10.00	%		7.96	%		5.61	%		11.96	%		1.52	%

-------------

*	Commencement of offering of Class C shares.
**	During the periods stated, the Manager, at its discretion, waived portions of its management fees for California High-Yield Series and Florida Series (Note 4).
†	Annualized.
††	For the year ended September 30, 1999.
ø	As required, effective October 1, 2001, the Trust adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing market discounts on portfolio securities for financial reporting purposes. The effect of this change, for the year ended September 30, 2002, was to increase net investment income and decrease net realized and unrealized gain on investments per share by less than $0.01 for each share class of each Series and to increase the ratio of net investment income to average net assets of each share class of the California High-Yield and Florida Series by 0.04% and each share class of the California Quality and North Carolina Series by 0.05%. The per share data and ratios for periods prior to October 1, 2001, have not been restated.

See Notes to Financial Statements.

41

Trustees

Robert B. Catell 2, 3	William C. Morris
•  Chairman, Chief Executive Officer and Director,	•  Chairman, J. & W. Seligman & Co. Incorporated
KeySpan Corporation	•  Chairman, Carbo Ceramics Inc.
John R. Galvin 1, 3	Leroy C. Richie 1, 3
•  Dean Emeritus, Fletcher School of Law and Diplomacy	•  Chairman and Chief Executive Officer, Q Standards Worldwide, Inc.
at Tufts University	•  Director, Kerr-McGee Corporation
Alice S. Ilchman 2, 3	Robert L. Shafer 2, 3
•  President Emerita, Sarah Lawrence College •  Director, Jeannette K. Watson Summer Fellowship •  Trustee, Committee for Economic Development	•  Retired Vice President, Pfizer Inc.
Frank A. McPherson 2, 3	James N. Whitson 1, 3
•  Retired Chairman of the Board and Chief	•  Retired Executive Vice President and Chief
Executive Officer, Kerr-McGee Corporation	Operating Officer, Sammons Enterprises, Inc.
•  Director, ConocoPhillips
•  Director, Integris Health
John E. Merow 1, 3	Brian T. Zino
•  Retired Chairman and Senior Partner,     Sullivan & Cromwell LLP •  Director, Commonwealth Industries, Inc. •  Trustee, New York-Presbyterian Hospital	•  Director and President, J. & W. Seligman & Co. Incorporated •  Chairman, Seligman Data Corp. •  Chairman, ICI Mutual Insurance Company •  Member of the Board of Governors, Investment Company Institute
Betsy S. Michel 1, 3
•  Trustee, The Geraldine R. Dodge Foundation	Member:	1 Audit Committee   2 Director Nominating Committee   3 Board Operations Committee

Executive Officers

William C. Morris	Thomas G. Rose
Chairman	Vice President
Brian T. Zino	Lawrence P. Vogel
President and Chief Executive Officer	Vice President and Treasurer
Eileen A. Comerford	Frank J. Nasta
Vice President	Secretary
Thomas G. Moles
Vice President

42

Glossary of Financial Terms

Capital Gain Distribution — A payment to mutual fund shareholders of profits realized on the sale of securities in a fund’s portfolio.

Capital Appreciation/Depreciation — An increase or decrease in the market value of a mutual fund’s portfolio securities, which is reflected in the net asset value of the fund’s shares. Capital appreciation/depreciation of an individual security is in relation to the original purchase price.

Compounding — The change in the value of an investment as shareholders receive earnings on their investment’s earnings. For example, if $1,000 is invested at a fixed rate of 7% a year, the initial investment is worth $1,070 after one year. If the return is compounded, second year earnings will not be based on the original $1,000, but on the $1,070, which includes the first year’s earnings.

Contingent Deferred Sales Charge (CDSC) — Depending on the class of shares owned, a fee charged by a mutual fund when shares are sold back to the fund. The CDSC expires after a fixed time period.

Dividend — A payment by a mutual fund, usually derived from the fund’s net investment income (dividends and interest less expenses).

Dividend Yield — A measurement of a fund’s dividend as a percentage of the maximum offering price or net asset value.

Expense Ratio — The cost of doing business for a mutual fund, expressed as a percent of the fund’s net assets.

Investment Objective — The shared investment goal of a fund and its shareholders.

Management Fee — The amount paid by a mutual fund to its investment advisor(s).

Multiple Classes of Shares — Although an individual mutual fund invests in only one portfolio of securities, it may offer investors several purchase options which are "classes" of shares. Multiple classes permit shareholders to choose the fee structure that best meets their needs and goals. Generally, each class will differ in terms of how and when sales charges and certain fees are assessed.

National Association of Securities Dealers, Inc. (NASD) — A self-regulatory body with authority over firms that distribute mutual funds.

Net Asset Value (NAV) Per Share — The market worth of one fund share, obtained by

adding a mutual fund’s total assets (securities, cash, and any accrued earnings), subtracting liabilities, and dividing the resulting net assets by the number of shares outstanding.

Offering Price — The price at which a mutual fund’s share can be purchased. The offering price per share is the current net asset value plus any sales charge.

43

Glossary of Financial Terms

Portfolio Turnover — A measure of the trading activity in a mutual fund’s investment portfolio that reflects how often securities are bought and sold.

Prospectus — The legal document describing a mutual fund to all prospective shareholders. It contains information required by the Securities and Exchange Commission (SEC), such as a fund’s investment objective and policies, services, investment restrictions, how shares are bought and sold, fund fees and other charges, and the fund’s financial highlights.

SEC Yield — SEC Yield refers to the net income earned by a fund during a recent 30-day period. This income is annualized and then divided by the maximum offering price per share on the last day of the 30-day period. The SEC Yield formula reflects semiannual compounding.

Securities and Exchange Commission — The primary US federal agency that regulates the registration and distribution of mutual fund shares.

Statement of Additional Information — A document that contains more detailed information about an investment company and that supplements the prospectus. It is avail able at no charge upon request.

Total Return — A measure of a fund’s performance encompassing all elements of return. Reflects the change in share price over a given period and assumes all distributions are taken in additional fund shares. The Average Annual Total Return represents the average annual compounded rate of return for the periods presented.

Wash Sale — A sale of securities in which a taxpayer has acquired substantially identical securities within a period beginning thirty days before and ending thirty days after the date of the sale (a sixty-one day period). A loss resulting from such a sale is not currently deductible for federal income tax purposes, but a gain is taxable.

Yield on Securities — For bonds, the current yield is the coupon rate of interest, divided by the purchase price. For stocks, the yield is measured by dividing dividends paid by the market price of the stock.

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Adapted from the Investment Company Institute’s 2002 Mutual Fund Fact Book and the AICPA Audit and Accounting Guide: Audits of Investment Companies dated May 1, 2001.

44

Manager
J. & W. Seligman & Co. Incorporated
100 Park Avenue • New York, NY 10017

General Distributor

Seligman Advisors, Inc.

100 Park Avenue • New York, NY 10017

Shareholder Service Agent

Seligman Data Corp.

100 Park Avenue • New York, NY 10017

General Counsel

Sullivan & Cromwell LLP

For More Information

Important Telephone Numbers

(800) 221-2450Shareholder Services

(212) 682-7600Outside the United States

(800) 622-459724-Hour Automated Telephone

                          Access Service

This report is intended only for the information of shareholders or those who have received the offering prospectus covering shares of Beneficial Interest of each Series of Seligman Municipal Series Trust, which contains information about the sales charges, management fee, and other costs. Please read the prospectus carefully before investing or sending money.

TEB3 3/04
 

ITEM 2.	CODE OF ETHICS.
	Not applicable.
ITEM 3.	AUDIT COMMITTEE FINANCIAL EXPERT.
	Not applicable.
ITEM 4.	PRINCIPAL ACCOUNTANT FEES AND SERVICES.
	Not applicable.
ITEM 5.	AUDIT COMMITTEE OF LISTED REGISTRANTS.
	Not applicable
ITEM 6.	SCHEDULE OF INVESTMENTS.
	Not applicable.
ITEM 7.	DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
	Not applicable.
ITEM 8.	PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
	Not applicable.
ITEM 9.	SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
	Not applicable.
ITEM 10.	CONTROLS AND PROCEDURES.

	(a)	The registrant's principal executive officer and principal financial officer have concluded, based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures provide reasonable assurance that material information required to be disclosed by the registrant in the report it files or submits on Form N-CSR is recorded, processed, summarized and reported, within the time periods specified in the Commission's rules and forms and that such material information is accumulated and communicated to the registrant's management, including its principal executive officer and principal financial officer, as appropriate, in order to allow timely decisions regarding required disclosure.
	(b)	The registrant’s principal executive officer and principal financial officer are aware of no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
ITEM 11.	EXHIBITS.

(a)(1)	Not applicable.
(a)(2)	Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940.
(a)(3)	Not applicable.
(b)	Certifications of chief executive officer and chief financial officer as required by Rule 30a-2(b) under the Investment Company Act of 1940.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

SELIGMAN MUNICIPAL SERIES TRUST

By:	/S/	BRIAN T. ZINO
		Brian T. Zino
		President and Chief Executive Officer
Date:		June 3, 2004

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant in the capacities and on the dates indicated.

By:	/S/	BRIAN T. ZINO
		Brian T. Zino
		President and Chief Executive Officer
Date:		June 3, 2004

By:	/S/	LAWRENCE P. VOGEL
		Lawrence P. Vogel
		Vice President, Treasurer and Chief Financial Officer
Date:		June 3, 2004

SELIGMAN MUNICIPAL SERIES TRUST

EXHIBIT INDEX

(a)(2)	Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940.
(b)	Certification of chief executive officer and chief financial officer as required by Rule 30a-2(b) of the Investment Company Act of 1940.