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 811-4626

Tax-Free Trust or Oregon
(Exact name of Registrant as specified in charter)

380 Madison Avenue
New York, New York 10017
(Address of principal executive offices) (Zip code)

Joseph P. DiMaggio
380 Madison Avenue
New York, New York 10017
(Name and address of agent for service)

Registrant's telephone number, including area code: (212) 697-6666

Date of fiscal year end: 9/30

Date of reporting period: 3/31/08

FORM N-CSR

ITEM 1. REPORTS TO STOCKHOLDERS

SEMI-ANNUAL
REPORT

MAY 31, 2008

TAX-FREE TRUST OF
OREGON

A TAX-FREE INCOME INVESTMENT

[LOGO OF TAX-FREE TRUST OF OREGON:
A SQUARE WITH TWO PINE TREES
IN FRONT OF A MOUNTAIN]

[LOGO OF THE AQUILA
GROUP OF FUNDS: ONE OF THE
AN EAGLE'S HEAD] AQUILA GROUP OF FUNDS(R)

[LOGO OF TAX-FREE SERVING OREGON INVESTORS FOR MORE THAN TWO DECADES
TRUST OF OREGON:
A SQUARE WITH TAX-FREE TRUST OF OREGON
TWO PINE TREES
IN FRONT OF A "A MORE PREDICTABLE RIDE"
MOUNTAIN]

May, 2008

Dear Fellow Shareholder:

If you've read any of our previous shareholder communications, you know
that we try to skip the financial jargon and speak in terms to which the average
person can relate and understand.

The recent movements in the stock market got us to thinking about how risk
tolerance mirrors choosing rides at an amusement park.

In our younger days, we always enjoyed the thrill of roller coasters. If
you're like us, you can vividly remember holding your breath with anticipation
as you climbed and climbed to the top, never knowing just when you would finally
get there. Then, just as you began to relax, the coaster would begin its
decline. The ride to the bottom seemed like it would never end as you laughed,
screamed, and implored the heavens to let you make it through alive.

Much of what has transpired in the stock market over the last year or so
has reminded us of our younger roller-coaster riding days. Of course, the ride
to the "top" of the market is always exhilarating. But, as we've matured, we've
come to realize that roller coasters have lost some of their allure.

We no longer find adrenaline-pumping adventures so attractive. While you
can be brought to dizzying heights, some dramatic lows are also inevitable. For
those of us who don't have the stomach for this type of volatility, especially
with our investment money, a more stable alternative may be the ticket.

We like to think of investing in a tax-free municipal bond fund, such as
Tax-Free Trust of Oregon, as more like riding the swings at a county fair. There
is definitely some up and down movement, but you usually don't go quite that
far. In general, you know what to expect next and the ride is fairly pleasant.

NOT A PART OF THE SEMI-ANNUAL REPORT

Of course, we believe that there is a place in everyone's life for roller
coasters. But, as one matures, it might be prudent to have the more stable
predictable swings begin to play a larger role. After all, what good are highs
if they are often followed by lows?

Sincerely,

/s/ Lacy B. Herrmann /s/ Diana P. Herrmann

Lacy B. Herrmann Diana P. Herrmann
Founder and Chairman Emeritus President

NOT A PART OF THE SEMI-ANNUAL REPORT

TAX-FREE TRUST OF OREGON
SCHEDULE OF INVESTMENTS
MARCH 31, 2008 (unaudited)

RATING
PRINCIPAL MOODY'S/
AMOUNT STATE OF OREGON GENERAL OBLIGATION BONDS (40.8%) S&P VALUE
- ------------ ---------------------------------------------------------------- --------- ------------

Bend, Oregon Transportation Highway System
(MBIA Corporation Insured)
$ 1,135,000 5.300%, 09/01/17 ............................................... Aaa/NR $ 1,180,479
Benton and Linn Counties, Oregon School District
#509J (Financial Security Assurance Insured)
4,670,000 5.000%, 06/01/21 pre-refunded .................................. Aaa/NR 5,127,380
Chemeketa, Oregon Community College District
(Financial Guaranty Insurance Corporation Insured),
1,385,000 5.500%, 06/01/14 Escrowed to Maturity .......................... Baa3/NR 1,556,837
Clackamas, Oregon Community College District
(Financial Guaranty Insurance Corporation Insured)
3,955,000 5.250%, 06/15/17 pre-refunded .................................. Aa2/AA- 4,287,339
Clackamas, Oregon Community College District
(MBIA Corporation Insured)
1,535,000 5.000%, 05/01/25 ............................................... Aaa/AAA 1,555,293
Clackamas, Oregon School District #12 (North
Clackamas) Convertible Capital Appreciation
Bonds (Financial Security Assurance Insured)
(converts to a 5% coupon on 06/15/11)
4,250,000 zero coupon, 06/15/29 .......................................... Aaa/AAA 3,559,248
Clackamas County, Oregon School District #12 (North
Clackamas) (Financial Security Assurance Insured)
2,000,000 4.500%, 06/15/30 ............................................... Aaa/AAA 1,869,040
3,115,000 4.750%, 06/15/31 ............................................... Aaa/AAA 3,033,605
Clackamas County, Oregon School District #62
(Oregon City) (State School Bond Guaranty Program)
2,055,000 5.500%, 06/15/20 pre-refunded .................................. Aa2/AAA 2,197,966
Clackamas County, Oregon School District #86
(Canby) (Financial Security Assurance Insured)
2,240,000 5.000%, 06/15/19 ............................................... Aaa/AAA 2,374,490
Clackamas County, Oregon School District #108
(Estacada) (Financial Security Assurance Insured)
1,295,000 5.375%, 06/15/17 pre-refunded .................................. Aaa/AAA 1,408,766
2,000,000 5.000%, 06/15/25 pre-refunded .................................. Aaa/AAA 2,152,780

RATING
PRINCIPAL MOODY'S/
AMOUNT STATE OF OREGON GENERAL OBLIGATION BONDS (CONTINUED) S&P VALUE
- ------------ ---------------------------------------------------------------- --------- ------------

Clackamas County, Oregon Tax Allocation
$ 705,000 6.500%, 05/01/20 ............................................... NR/NR* $ 705,226
Columbia County, Oregon School District #502
(Financial Guaranty Insurance Corporation Insured)
2,070,000 zero coupon, 06/01/15 .......................................... A2/NR 1,551,175
Deschutes County, Oregon (Financial Security
Assurance Insured)
1,615,000 5.000%, 12/01/15 ............................................... Aaa/NR 1,730,489
2,260,000 5.000%, 12/01/16 ............................................... Aaa/NR 2,409,544
Deschutes County, Oregon Administrative School
District #1 (Bend-LaPine) (Financial Security
Assurance Insured)
1,145,000 5.500%, 06/15/14 pre-refunded .................................. Aaa/NR 1,249,962
1,300,000 5.500%, 06/15/16 pre-refunded .................................. Aaa/NR 1,419,171
1,355,000 5.500%, 06/15/18 pre-refunded .................................. Aaa/NR 1,479,213
3,000,000 5.125%, 06/15/21 pre-refunded .................................. Aaa/NR 3,240,630
Deschutes County, Oregon School District #6
(Sisters) (Financial Security Assurance Insured)
1,735,000 5.250%, 06/15/19 ............................................... Aaa/AAA 1,924,167
1,030,000 5.250%, 06/15/21 ............................................... Aaa/AAA 1,133,175
Deschutes and Jefferson Counties, Oregon School
District #02J (Redmond) (Financial Guaranty
Insurance Corporation Insured)
1,000,000 5.000%, 06/15/21 ............................................... Aa2/NR 1,034,930
2,330,000 zero coupon, 06/15/22 .......................................... Aa2/NR 1,128,699
Douglas County, Oregon School District #116
(Winston-Dillard) (State School Bond
Guaranty Program)
1,020,000 5.625%, 06/15/20 pre-refunded .................................. NR/AA 1,093,675
Gresham, Oregon (Financial Security
Assurance Insured)
1,155,000 5.375%, 06/01/18 ............................................... Aaa/NR 1,231,669

RATING
PRINCIPAL MOODY'S/
AMOUNT STATE OF OREGON GENERAL OBLIGATION BONDS (CONTINUED) S&P VALUE
- ------------ ---------------------------------------------------------------- --------- ------------

Jackson County, Oregon School District #4 (Phoenix-
Talent) (Financial Security Assurance Insured)
$ 1,395,000 5.500%, 06/15/18 pre-refunded .................................. Aaa/AAA $ 1,522,880
Jackson County, Oregon School District #9 (Eagle
Point) (MBIA Corporation Insured)
2,080,000 5.500%, 06/15/15 ............................................... Aaa/NR 2,346,864
1,445,000 5.500%, 06/15/16 ............................................... Aaa/NR 1,633,977
Jackson County, Oregon School District #9 (Eagle
Point) (State School Bond Guaranty Program)
1,120,000 5.625%, 06/15/17 pre-refunded .................................. Aa2/NR 1,226,949
1,880,000 5.000%, 06/15/21 pre-refunded .................................. Aa2/NR 2,023,613
Jackson County, Oregon School District #549
(Medford) (State School Bond Guaranty Program)
1,750,000 5.000%, 06/15/12 ............................................... Aa2/NR 1,892,818
Jackson County, Oregon School District #549C
(Medford) (Financial Security Assurance Insured)
2,000,000 4.750%, 12/15/29 ............................................... Aaa/AAA 1,939,260
3,000,000 5.000%, 12/15/32 ............................................... Aaa/AAA 2,995,560
Jefferson County, Oregon School District #509J
(Financial Guaranty Insurance Corporation Insured)
1,215,000 5.250%, 06/15/14 ............................................... Baa3/AA 1,301,241
1,025,000 5.250%, 06/15/17 ............................................... Baa3/AA 1,081,324
Josephine County, Oregon Three Rivers School
District (Financial Security Assurance Insured)
1,780,000 5.250%, 06/15/18 pre-refunded .................................. Aaa/NR 1,929,573
Lane County, Oregon School District #19 (Springfield)
(Financial Security Assurance Insured)
3,425,000 zero coupon, 06/15/29 .......................................... Aaa/NR 1,033,391
Lane County, Oregon School District #40 (Creswell)
(State School Bond Guaranty Program)
1,430,000 5.375%, 06/15/20 pre-refunded .................................. NR/AA 1,525,667
Lincoln County, Oregon School District (Financial
Guaranty Insurance Corporation Insured)
1,245,000 5.250%, 06/15/12 ............................................... Baa3/NR 1,280,993

RATING
PRINCIPAL MOODY'S/
AMOUNT STATE OF OREGON GENERAL OBLIGATION BONDS (CONTINUED) S&P VALUE
- ------------ ---------------------------------------------------------------- --------- ------------

Linn County, Oregon School District #7 (Harrisburg)
(State School Bond Guaranty Program)
$ 1,660,000 5.500%, 06/15/19 pre-refunded .................................. NR/AA $ 1,775,486
Linn County, Oregon School District #9 (Lebanon)
(Financial Guaranty Insurance Corporation Insured)
3,000,000 5.600%, 06/15/30 pre-refunded .................................. Baa3/AA 3,359,010
Linn County, Oregon School District #9 (Lebanon)
(MBIA Corporation Insured)
2,500,000 5.000%, 06/15/30 ............................................... Aaa/AAA 2,509,350
Metro, Oregon
1,100,000 5.000%, 06/01/18 ............................................... Aaa/AAA 1,196,822
Morrow County, Oregon School District #1 (Financial
Security Assurance Insured)
1,710,000 5.250%, 06/15/19 ............................................... Aaa/AAA 1,896,441
Multnomah County, Oregon School District #7
(Reynolds) (MBIA Corporation Insured)
2,625,000 5.000%, 06/01/25 ............................................... Aaa/NR 2,662,380
Multnomah County, Oregon School District #7
(Reynolds) (State School Bond Guaranty Program)
500,000 5.625%, 06/15/17 pre-refunded .................................. Aa2/AA 546,940
2,375,000 5.125%, 06/15/19 pre-refunded .................................. Aa2/AA 2,561,699
Multnomah and Clackamas Counties, Oregon School
District #10 (Gresham-Barlow) (Financial Security
Assurance Insured)
1,500,000 5.500%, 06/15/18 pre-refunded .................................. Aaa/AAA 1,637,505
4,275,000 5.250%, 06/15/19 ............................................... Aaa/AAA 4,741,103
2,650,000 5.000%, 06/15/21 pre-refunded .................................. Aaa/AAA 2,852,434
Multnomah and Clackamas Counties, Oregon School
District #28JT (Centennial) (Financial Security
Assurance Insured)
2,680,000 5.250%, 12/15/18 ............................................... Aaa/NR 2,996,374
Oregon Coast Community College District (MBIA
Corporation Insured)
1,590,000 5.250%, 06/15/17 ............................................... Aaa/NR 1,712,557

RATING
PRINCIPAL MOODY'S/
AMOUNT STATE OF OREGON GENERAL OBLIGATION BONDS (CONTINUED) S&P VALUE
- ------------ ---------------------------------------------------------------- --------- ------------

Pacific City, Oregon Joint Water - Sanitary Authority
$ 1,830,000 4.800%, 07/01/27 ............................................... NR/NR* $ 1,789,392
Polk, Marion & Benton Counties, Oregon School District
#13J (Central) (Financial Security Assurance Insured)
1,520,000 5.000%, 06/15/21 ............................................... Aaa/AAA 1,607,157
Portland, Oregon
1,000,000 4.600%, 06/01/14 ............................................... Aaa/NR 1,032,140
2,975,000 zero coupon, 06/01/15 .......................................... Aa2/NR 2,221,552
1,120,000 5.125%, 06/01/18 ............................................... Aaa/NR 1,138,558
10,070,000 4.350%, 06/01/23 ............................................... Aa1/NR 10,047,338
Portland, Oregon Community College District
2,350,000 5.000%, 06/01/21 pre-refunded .................................. Aa2/AA 2,523,712
Portland, Oregon Community College District
(Financial Guaranty Insurance Corporation Insured)
1,395,000 5.000%, 06/01/17 pre-refunded .................................. Aa2/AA 1,498,118
Salem-Keizer, Oregon School District #24J (Financial
Security Assurance Insured)
1,000,000 4.875%, 06/01/14 ............................................... Aaa/AAA 1,005,060
1,000,000 5.000%, 06/15/19 ............................................... Aaa/AAA 1,053,250
Southwestern Oregon Community College District
(MBIA Corporation Insured)
1,120,000 6.000%, 06/01/25 pre-refunded .................................. Aaa/AAA 1,208,323
State of Oregon
2,115,000 5.250%, 10/15/14 ............................................... Aa2/AA 2,304,969
State of Oregon Board of Higher Education
820,000 zero coupon, 08/01/16 .......................................... Aa2/AA 573,024
2,560,000 5.500%, 08/01/21 pre-refunded .................................. Aa2/AA 2,700,646
2,000,000 5.000%, 08/01/21 ............................................... Aa2/AA 2,107,640
2,130,000 5.000%, 08/01/22 ............................................... Aa2/AA 2,157,754
State of Oregon Elderly and Disabled Housing
35,000 6.250%, 08/01/13 ............................................... Aa2/AA 35,097
State of Oregon Veterans' Welfare
700,000 9.200%, 10/01/08 ............................................... Aa2/NR 725,564
605,000 5.200%, 10/01/18 ............................................... Aa2/AA 610,112

RATING
PRINCIPAL MOODY'S/
AMOUNT STATE OF OREGON GENERAL OBLIGATION BONDS (CONTINUED) S&P VALUE
- ------------ ---------------------------------------------------------------- --------- ------------

State of Oregon Veterans' Welfare (continued)
$ 550,000 4.800%, 12/01/22 ............................................... Aa2/AA $ 539,748
400,000 4.900%, 12/01/26 ............................................... Aa2/AA 390,416
The Dalles, Oregon
230,000 4.000%, 06/01/20 ............................................... NR/A 228,457
155,000 4.000%, 06/01/21 ............................................... NR/A 152,036
130,000 4.125%, 06/01/22 ............................................... NR/A 127,735
100,000 4.200%, 06/01/23 ............................................... NR/A 97,799
Wasco County, Oregon School District #12 (The
Dalles) (Financial Security Assurance Insured)
1,135,000 6.000%, 06/15/15 pre-refunded .................................. Aaa/AAA 1,226,072
1,400,000 5.500%, 06/15/17 ............................................... Aaa/AAA 1,592,570
1,790,000 5.500%, 06/15/20 ............................................... Aaa/AAA 2,021,214
Washington County, Oregon
2,465,000 5.000%, 06/01/23 ............................................... Aa2/NR 2,570,601
3,325,000 4.375%, 06/01/26 ............................................... Aa2/NR 3,098,601
Washington County, Oregon School District #15
(Forest Grove) (Financial Security Assurance Insured)
1,760,000 5.375%, 06/15/16 pre-refunded .................................. Aaa/NR 1,914,616
2,000,000 5.000%, 06/15/21 pre-refunded .................................. Aaa/NR 2,152,780
Washington County, Oregon School District #48J
(Beaverton)
1,620,000 5.125%, 01/01/16 pre-refunded .................................. Aa2/AA- 1,729,836
Washington, Multnomah and Yamhill County,
Oregon School District #1J (Hillsboro)
1,295,000 5.250%, 06/01/13 pre-refunded .................................. Aa3/NR 1,343,329
Washington, Multnomah and Yamhill County,
Oregon School District #1J (Hillsboro) (MBIA
Corporation Insured)
8,500,000 zero coupon, 06/15/26 .......................................... Aaa/NR 3,010,190
Yamhill County, Oregon School District #40
(McMinnville) (Financial Security Assurance Insured)
1,375,000 5.000%, 06/15/22 ............................................... Aaa/NR 1,442,086
------------
Total General Obligation Bonds ................................. 165,794,651
------------

RATING
PRINCIPAL MOODY'S/
AMOUNT STATE OF OREGON REVENUE BONDS (53.3%) S&P VALUE
- ------------ ---------------------------------------------------------------- --------- ------------

AIRPORT REVENUE BONDS (0.9%)
----------------------------------------------------------------
Jackson County, Oregon Airport Revenue (XLCA Insured)
$ 750,000 5.250%, 12/01/32 ............................................... A3/A- $ 741,765
Port of Portland, Oregon Airport (AMBAC Indemnity
Corporation Insured)
3,000,000 5.500%, 07/01/24 ............................................... Aaa/AAA 3,059,940
------------
Total Airport Revenue Bonds .................................... 3,801,705
------------
CERTIFICATES OF PARTICIPATION REVENUE BONDS (5.7%)
----------------------------------------------------------------
Oregon State Department Administrative Services
(AMBAC Indemnity Corporation Insured)
595,000 5.000%, 11/01/19 ............................................... Aaa/AAA 601,884
Oregon State Department of Administration Services
(AMBAC Indemnity Corporation Insured)
500,000 5.375%, 05/01/14 ............................................... Aaa/AAA 536,005
3,500,000 6.000%, 05/01/26 pre-refunded .................................. Aaa/AAA 3,795,330
Oregon State Department of Administrative Services
(Financial Guaranty Insurance Corporation Insured)
2,000,000 5.000%, 11/01/20 ............................................... Aa3/AA- 2,077,860
2,660,000 5.000%, 11/01/23 ............................................... Aa3/AA- 2,713,812
2,945,000 5.000%, 11/01/24 ............................................... Aa3/AA- 2,985,906
1,475,000 5.000%, 11/01/26 ............................................... Aa3/AA- 1,479,027
1,145,000 5.000%, 05/01/27 ............................................... Aa3/AA- 1,142,160
3,880,000 5.000%, 11/01/27 ............................................... Aa3/AA- 3,887,876
Oregon State Department of Administrative Services
(Financial Security Assurance Insured)
750,000 5.000%, 05/01/19 ............................................... Aaa/AAA 789,263
1,000,000 5.000%, 05/01/22 ............................................... Aaa/AAA 1,037,060
2,280,000 4.500%, 11/01/32 ............................................... Aaa/AAA 2,114,518
------------
Total Certificates of Participation Revenue Bonds .............. 23,160,701
------------
HOSPITAL REVENUE BONDS (10.3%)
----------------------------------------------------------------
Clackamas County, Oregon Hospital Facilities
Authority (Legacy Health System)
2,000,000 5.250%, 02/15/17 ............................................... A1/AA- 2,048,540
2,980,000 5.250%, 02/15/18 ............................................... A1/AA- 3,046,752
4,025,000 5.250%, 05/01/21 ............................................... A1/AA- 4,103,125
Clackamas County, Oregon Hospital Facilities Authority
(Legacy Health System) (MBIA Corporation Insured)
2,650,000 4.750%, 02/15/11 ............................................... Aaa/AAA 2,740,975

RATING
PRINCIPAL MOODY'S/
AMOUNT STATE OF OREGON REVENUE BONDS (CONTINUED) S&P VALUE
- ------------ ---------------------------------------------------------------- --------- ------------

HOSPITAL REVENUE BONDS (CONTINUED)
----------------------------------------------------------------
Clackamas County, Oregon Hospital Facilities
Authority (Mary's Woods)
$ 3,480,000 6.625%, 05/15/29 pre-refunded .................................. NR/NR** $ 3,695,482
Deschutes County, Oregon Hospital Facilities
Authority (Cascade Health)
2,000,000 5.600%, 01/01/27 pre-refunded .................................. A1/NR 2,194,680
3,000,000 5.600%, 01/01/32 pre-refunded .................................. A1/NR 3,292,020
Klamath Falls, Oregon Inter Community Hospital (Merle
West) (Assured Guaranty Corporation Insured)
5,000,000 5.000%, 09/01/36 ............................................... NR/AAA 4,816,300
Medford, Oregon Hospital Facilities Authority 7 Day
Auction Bond (Asante Health System) (MBIA
Corporation Insured)
3,000,000 8.080%, 08/15/29 ............................................... Aaa/AAA 3,000,000
Medford, Oregon Hospital Facilities Authority
(MBIA Corporation Insured)
345,000 5.000%, 08/15/18 ............................................... Aaa/AAA 348,840
Multnomah County, Oregon Hospital Facilities
Authority (Providence Health System)
1,390,000 5.250%, 10/01/22 ............................................... Aa2/AA 1,426,098
Multnomah County, Oregon Hospital Facilities
Authority (Terwilliger Plaza Project)
1,250,000 5.250%, 12/01/36 ............................................... NR/NR* 1,005,550
Oregon Health Sciences University Series B (MBIA
Corporation Insured)
1,400,000 5.250%, 07/01/15 ............................................... Aaa/AAA 1,408,372
Salem, Oregon Hospital
3,500,000 4.500%, 08/15/30 ............................................... NR/A+ 3,017,875
State of Oregon Health Housing Educational and
Cultural Facilities Authority (Peacehealth)
(AMBAC Indemnity Corporation Insured)
2,300,000 5.250%, 11/15/17 ............................................... Aaa/AAA 2,430,088
1,850,000 5.000%, 11/15/26 ............................................... Aaa/AAA 1,858,973
1,430,000 5.000%, 11/15/32 ............................................... Aaa/AAA 1,408,021
------------
Total Hospital Revenue Bonds ................................... 41,841,691
------------

RATING
PRINCIPAL MOODY'S/
AMOUNT STATE OF OREGON REVENUE BONDS (CONTINUED) S&P VALUE
- ------------ ---------------------------------------------------------------- --------- ------------

HOUSING, EDUCATIONAL, AND CULTURAL REVENUE BONDS (8.7%)
----------------------------------------------------------------
Forest Grove, Oregon (Pacific University)
(Radian Insured)
$ 4,000,000 5.000%, 05/01/22 ............................................... Aa3/AA $ 4,018,760
Forest Grove, Oregon Student Housing (Oak
Tree Foundation)
5,750,000 5.500%, 03/01/37 ............................................... NR/NR* 5,085,588
Multnomah County, Oregon Educational Facility
(University of Portland)
1,000,000 6.000%, 04/01/20 ............................................... NR/BBB+ 1,070,910
Oregon Health Sciences University, Oregon (MBIA
Corporation Insured)
11,550,000 zero coupon, 07/01/21 .......................................... Aaa/AAA 5,935,661
3,140,000 5.250%, 07/01/22 ............................................... Aaa/AAA 3,262,491
Oregon State Facilities Authority (Linfield College)
2,115,000 5.000%, 10/01/25 ............................................... Baa1/NR 2,040,890
Oregon State Facilities Authority Revenue
(University of Portland)
5,500,000 5.000%, 04/01/32 ............................................... NR/BBB+ 4,900,170
Oregon State Facilities Authority (Willamette
University) (Financial Guaranty
Corporation Insured)
500,000 5.125%, 10/01/25 ............................................... Baa3/A 509,180
Oregon State Facilities Authority Revenue
(Willamette University)
5,000,000 5.000%, 10/01/32 ............................................... NR/A 4,775,750
State of Oregon Housing and Community Services
5,000 5.900%, 07/01/12 ............................................... Aa2/NR 5,022
95,000 6.700%, 07/01/13 ............................................... Aa2/NR 95,276
300,000 6.000%, 07/01/20 ............................................... Aa2/NR 303,453
2,625,000 4.650%, 07/01/25 ............................................... Aa2/NR 2,490,731
1,050,000 5.400%, 07/01/27 ............................................... Aa2/NR 1,040,120
------------
Total Housing, Educational, and Cultural
Revenue Bonds .............................................. 35,534,002
------------

RATING
PRINCIPAL MOODY'S/
AMOUNT STATE OF OREGON REVENUE BONDS (CONTINUED) S&P VALUE
- ------------ ---------------------------------------------------------------- --------- ------------

PUBLIC FACILITIES REVENUE BONDS (0.3%)
----------------------------------------------------------------
Port of Morrow, Oregon
$ 1,250,000 5.000%, 06/01/25 ............................................... NR/NR* $ 1,143,388
------------
Total Public Facilities Revenue Bonds .......................... 1,143,388
------------
TRANSPORTATION REVENUE BONDS (6.4%)
----------------------------------------------------------------
Oregon St. Department Transportation Highway Usertax
3,025,000 5.500%, 11/15/18 pre-refunded .................................. Aa2/AAA 3,370,758
2,555,000 5.375%, 11/15/18 pre-refunded .................................. Aa2/AAA 2,755,363
1,200,000 5.000%, 11/15/22 ............................................... Aa2/AAA 1,247,172
1,260,000 5.000%, 11/15/23 ............................................... Aa2/AAA 1,302,197
4,545,000 5.125%, 11/15/26 ............................................... Aa2/AAA 4,991,228
2,155,000 5.000%, 11/15/28 ............................................... Aa2/AAA 2,185,019
1,000,000 5.000%, 11/15/29 ............................................... Aa2/AAA 1,008,350
3,165,000 4.500%, 11/15/32 ............................................... Aa2/AAA 2,951,932
Tri-County Metropolitan Transportation District, Oregon
1,440,000 5.750%, 08/01/16 pre-refunded .................................. NR/AAA 1,553,962
1,775,000 5.000%, 09/01/16 ............................................... Aa3/AAA 1,888,352
Tri-County Metropolitan Transportation District,
Oregon (LOC: Morgan Guaranty Trust)
2,500,000 5.400%, 06/01/19 pre-refunded .................................. NR/AA- 2,619,050
------------
Total Transportation Revenue Bonds ............................. 25,873,383
------------
URBAN RENEWAL REVENUE BONDS (3.7%)
----------------------------------------------------------------
Portland, Oregon Airport Way Renewal and
Redevelopment (AMBAC Indemnity
Corporation Insured)
1,640,000 6.000%, 06/15/14 pre-refunded .................................. Aaa/NR 1,787,206
1,765,000 5.750%, 06/15/20 pre-refunded .................................. Aaa/NR 1,914,001
Portland, Oregon River District Urban Renewal and
Redevelopment (AMBAC Indemnity
Corporation Insured)
1,915,000 5.000%, 06/15/20 ............................................... Aaa/NR 1,986,678
Portland, Oregon Urban Renewal Tax Allocation
(AMBAC Indemnity Corporation Insured)
(Convention Center)
1,150,000 5.750%, 06/15/18 ............................................... Aaa/NR 1,212,917
2,000,000 5.450%, 06/15/19 ............................................... Aaa/NR 2,086,440

RATING
PRINCIPAL MOODY'S/
AMOUNT STATE OF OREGON REVENUE BONDS (CONTINUED) S&P VALUE
- ------------ ---------------------------------------------------------------- --------- ------------

URBAN RENEWAL REVENUE BONDS (CONTINUED)
----------------------------------------------------------------
Portland, Oregon Urban Renewal Tax Allocation
(Interstate Corridor) (Financial Guaranty Insurance
Corporation Insured)
$ 1,890,000 5.250%, 06/15/20 ............................................... A3/NR $ 2,013,285
1,990,000 5.250%, 06/15/21 ............................................... A3/NR 2,105,858
2,030,000 5.000%, 06/15/23 ............................................... A3/NR 2,076,649
------------
Total Urban Renewal Revenue Bonds .............................. 15,183,034
------------

UTILITY REVENUE BONDS (0.8%)
----------------------------------------------------------------
Emerald Peoples Utility District, Oregon (Financial
Security Assurance Insured)
1,455,000 5.250%, 11/01/22 ............................................... Aaa/NR 1,531,693
Eugene, Oregon Electric Utility (Financial Security
Assurance Insured)
1,600,000 5.000%, 08/01/18 ............................................... Aaa/AAA 1,606,784
------------
Total Utility Revenue Bonds .................................... 3,138,477
------------

WATER AND SEWER REVENUE BONDS (14.8%)
----------------------------------------------------------------
Klamath Falls, Oregon Wastewater (AMBAC
Indemnity Corporation Insured)
1,545,000 5.650%, 06/01/20 pre-refunded .................................. Aaa/AAA 1,655,483
Klamath Falls, Oregon Water (Financial Security
Assurance Insured)
1,575,000 5.500%, 07/01/16 ............................................... Aaa/AAA 1,761,937
Lebanon, Oregon Wastewater (Financial Security
Assurance Insured)
1,000,000 5.700%, 03/01/20 ............................................... Aaa/AAA 1,042,370
Portland, Oregon Sewer System (Financial Guaranty
Insurance Corporation Insured)
2,500,000 5.750%, 08/01/19 pre-refunded .................................. Aa3/AA- 2,694,900
Portland, Oregon Sewer System (Financial Security
Assurance Insured)
2,760,000 5.250%, 06/01/17 ............................................... Aaa/AAA 2,964,544
4,595,000 5.000%, 06/01/17 ............................................... Aaa/AAA 4,964,576
3,470,000 5.000%, 06/01/21 ............................................... Aaa/AAA 3,599,049
Portland, Oregon Sewer System (MBIA
Corporation Insured)
4,410,000 5.000%, 06/15/25 ............................................... Aaa/AAA 4,529,070
4,630,000 5.000%, 06/15/26 ............................................... Aaa/AAA 4,729,638
1,610,000 5.000%, 06/15/27 ............................................... Aaa/AAA 1,617,406

RATING
PRINCIPAL MOODY'S/
AMOUNT STATE OF OREGON REVENUE BONDS (CONTINUED) S&P VALUE
- ------------ ---------------------------------------------------------------- --------- ------------

WATER AND SEWER REVENUE BONDS (CONTINUED)
----------------------------------------------------------------
Portland, Oregon Water System
$ 7,420,000 5.500%, 08/01/19 pre-refunded .................................. Aa1/NR $ 7,965,444
1,235,000 5.500%, 08/01/20 pre-refunded .................................. Aa1/NR 1,325,785
Portland, Oregon Water System (MBIA
Corporation Insured)
2,725,000 4.500%, 10/01/27 ............................................... Aaa/NR 2,556,432
Salem, Oregon Water & Sewer (Financial Security
Assurance Insured)
1,000,000 5.375%, 06/01/15 ............................................... Aaa/AAA 1,126,580
1,970,000 5.375%, 06/01/16 pre-refunded .................................. Aaa/AAA 2,099,528
3,025,000 5.500%, 06/01/20 pre-refunded .................................. Aaa/AAA 3,231,819
Sunrise Water Authority, Oregon (Financial Security
Assurance Insured)
2,630,000 5.000%, 03/01/19 ............................................... Aaa/AAA 2,769,969
1,350,000 5.250%, 03/01/24 ............................................... Aaa/AAA 1,413,396
Sunrise Water Authority, Oregon (XLCA Insured)
1,000,000 5.000%, 09/01/25 ............................................... A3/A- 971,650
Washington County, Oregon Clean Water
Services (Financial Guaranty Insurance
Corporation Insured)
995,000 5.000%, 10/01/13 ............................................... A1/AA- 1,054,441
3,525,000 5.125%, 10/01/17 ............................................... A1/AA- 3,668,291
Washington County, Oregon Clean Water Services
(MBIA Corporation Insured)
2,235,000 5.250%, 10/01/15 ............................................... Aaa/AAA 2,492,427
------------
Total Water and Sewer Revenue Bonds ............................ 60,234,735
------------

OTHER REVENUE BONDS (1.7%)
----------------------------------------------------------------
Oregon State Department of Administration
Services (Lottery Revenue) (Financial Security
Assurance Insured)
3,040,000 5.000%, 04/01/19 ............................................... Aaa/AAA 3,197,290
3,740,000 5.000%, 04/01/27 ............................................... Aaa/AAA 3,799,578
------------
Total Other Revenue Bonds ...................................... 6,996,868
------------
Total Revenue Bonds ............................................ 216,907,984
------------

RATING
PRINCIPAL MOODY'S/
AMOUNT U.S. TERRITORY BONDS (4.1%) S&P VALUE
- ------------ ---------------------------------------------------------------- --------- ------------

Puerto Rico Commonwealth Aqueduct & Sewer
Authority (Assured Guaranty Corporation Insured)
$ 3,000,000 5.000%, 07/01/28 ............................................... Aaa/AAA $ 2,999,760
Puerto Rico Commonwealth General Obligation
5,000,000 5.000%, 07/01/28 ............................................... Baa3/BBB- 4,656,500
Puerto Rico Municipal Finance Agency (Financial
Security Assurance Insured)
500,000 5.250%, 08/01/16 ............................................... Aaa/AAA 528,040
5,000,000 5.250%, 08/01/20 ............................................... Aaa/AAA 5,169,500
Puerto Rico Public Buildings Authority Revenue
(Commonwealth Guaranteed)
3,000,000 6.250%, 07/01/31 ............................................... Baa3/BBB- 3,182,700
------------
Total U.S. Territory Bonds ..................................... 16,536,500
------------
Total Municipal Bonds (cost $391,566,432-note 4) ............... 98.2% 399,239,135
Other assets less liabilities .................................. 1.8 7,427,426
----- ------------
Net Assets ..................................................... 100.0% $406,666,561
===== ============

(*) Any security not rated (NR) by either rating service has
been determined by the Investment Sub-Adviser to have
sufficient quality to be ranked in the top four credit
ratings if a credit rating were to be assigned by a
rating service.
(**) Rated AAA by Fitch.

PERCENT OF
PORTFOLIO DISTRIBUTION BY QUALITY RATING PORTFOLIO
----------------------------------------------- ---------
Aaa of Moody's or AAA of S&P or Fitch ......... 58.3%
Aa of Moody's or AA of S&P .................... 28.6
A of Moody's or S&P ........................... 6.0
Baa of Moody's or BBB of S&P .................. 4.7
Not rated* .................................... 2.4
-----
100.0%
=====

PORTFOLIO ABBREVIATIONS:
------------------------
AMBAC - American Municipal Bond Assurance Corp.
LOC - Letter of Credit
MBIA - Municipal Bond Investors Assurance
NR - Not Rated
XLCA - XL Capital Assurance

See accompanying notes to financial statements.

TAX-FREE TRUST OF OREGON
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 2008 (unaudited)

ASSETS
Investments at value (cost $391,566,432) ....................................................... $399,239,135
Cash ........................................................................................... 2,295,137
Interest receivable ............................................................................ 5,753,196
Receivable for Trust shares sold ............................................................... 230,130
Other assets ................................................................................... 31,212
------------
Total assets ................................................................................... 407,548,810
------------
LIABILITIES
Dividends payable .............................................................................. 411,100
Payable for Trust shares redeemed .............................................................. 149,464
Management fees payable ........................................................................ 136,881
Distribution and service fees payable .......................................................... 59,713
Accrued expenses ............................................................................... 125,091
------------
Total liabilities .............................................................................. 882,249
------------
NET ASSETS ......................................................................................... $406,666,561
============
Net Assets consist of:
Capital Stock - Authorized an unlimited number of shares, par value $0.01 per share ............ $ 384,872
Additional paid-in capital ..................................................................... 397,334,860
Net unrealized appreciation on investments (note 4) ............................................ 7,672,703
Undistributed net investment income ............................................................ 221,327
Accumulated net realized gain on investments ................................................... 1,052,799
------------
$406,666,561
============
CLASS A
Net Assets ..................................................................................... $330,448,474
============
Capital shares outstanding ..................................................................... 31,269,346
============
Net asset value and redemption price per share ................................................. $ 10.57
============
Offering price per share (100/96 of $10.57 adjusted to nearest cent) ........................... $ 11.01
============
CLASS C
Net Assets ..................................................................................... $ 20,946,931
============
Capital shares outstanding ..................................................................... 1,983,941
============
Net asset value and offering price per share ................................................... $ 10.56
============
Redemption price per share (* a charge of 1% is imposed on the redemption
proceeds of the shares, or on the original price, whichever is lower, if redeemed
during the first 12 months after purchase) ................................................. $ 10.56*
============
CLASS Y
Net Assets ..................................................................................... $ 55,271,156
============
Capital shares outstanding ..................................................................... 5,233,880
============
Net asset value, offering and redemption price per share ....................................... $ 10.56
============

See accompanying notes to financial statements.

TAX-FREE TRUST OF OREGON
STATEMENT OF OPERATIONS
SIX MONTHS ENDED MARCH 31, 2008 (unaudited)

Investment Income:
Interest income ................................................. $ 9,290,336

Management fees (note 3) ........................................ $ 815,969
Distribution and service fees (note 3) .......................... 366,466
Transfer and shareholder servicing agent fees ................... 156,399
Trustees' fees and expenses (note 8) ............................ 119,488
Legal fees (note 3) ............................................. 44,230
Shareholders' reports and proxy statements ...................... 39,036
Custodian fees (note 6) ......................................... 16,614
Registration fees and dues ...................................... 14,845
Auditing and tax fees ........................................... 10,528
Insurance ....................................................... 9,499
Chief compliance officer (note 3) ............................... 2,278
Miscellaneous ................................................... 23,279
1,618,631
-----------
Expenses paid indirectly (note 6) ............................... (42,691)
-----------
Net expenses .................................................... 1,575,940
------------
Net investment income ........................................... 7,714,396

Realized and Unrealized Gain (Loss) on Investments:

Net realized gain (loss) from securities transactions ........... 1,163,091
Change in unrealized appreciation on investments ................ (5,536,055)
-----------
Net realized and unrealized gain (loss) on investments .......... (4,372,964)
------------
Net change in net assets resulting from operations .............. $ 3,341,432
============

See accompanying notes to financial statements.

TAX-FREE TRUST OF OREGON
STATEMENTS OF CHANGES IN NET ASSETS

SIX MONTHS ENDED
MARCH 31, 2008 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2007
---------------- ------------------

OPERATIONS:
Net investment income .............................................. $ 7,714,396 $ 15,845,050
Net realized gain (loss) from securities transactions .............. 1,163,091 (102,920)
Change in unrealized appreciation on investments ................... (5,536,055) (6,101,166)
------------- -------------
Change in net assets resulting from operations ................. 3,341,432 9,640,964
------------- -------------

DISTRIBUTIONS TO SHAREHOLDERS (note 10):
Class A Shares:
Net investment income .............................................. (6,438,041) (13,291,389)
Net realized gain on investments ................................... -- (61,027)

Class C Shares:
Net investment income .............................................. (345,802) (867,841)
Net realized gain on investments ................................... -- (5,383)

Class Y Shares:
Net investment income .............................................. (1,000,404) (1,796,786)
Net realized gain on investments ................................... -- (7,679)
------------- -------------
Change in net assets from distributions ........................ (7,784,247) (16,030,105)
------------- -------------

CAPITAL SHARE TRANSACTIONS (note 7):
Proceeds from shares sold .......................................... 25,372,268 41,102,987
Reinvested dividends and distributions ............................. 4,431,473 9,282,150
Cost of shares redeemed ............................................ (29,309,326) (68,844,718)
------------- -------------
Change in net assets from capital share transactions ........... 494,415 (18,459,581)
------------- -------------

Change in net assets ........................................... (3,948,400) (24,848,722)

NET ASSETS:
Beginning of period ................................................ 410,614,961 435,463,683
------------- -------------
End of period* ..................................................... $ 406,666,561 $ 410,614,961
============= =============

* Includes undistributed net investment income of: ................. $ 221,327 $ 291,178
============= =============

See accompanying notes to financial statements.

TAX-FREE TRUST OF OREGON
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2008 (unaudited)

1. ORGANIZATION

Tax-Free Trust of Oregon (the "Trust") is a separate portfolio of The
Cascades Trust. The Cascades Trust (the "Business Trust") is an open-end
investment company, which was organized on October 17, 1985, as a Massachusetts
business trust and is authorized to issue an unlimited number of shares. The
Trust is a non-diversified portfolio which commenced operations on June 16, 1986
and until April 5, 1996, offered only one class of shares. On that date, the
Trust began offering two additional classes of shares, Class C and Class Y
shares. All shares outstanding prior to that date were designated as Class A
shares and are sold with a front-payment sales charge and bear an annual
distribution fee. Class C shares are sold with a level-payment sales charge with
no payment at time of purchase but level service and distribution fees from date
of purchase through a period of six years thereafter. A contingent deferred
sales charge of 1% is assessed to any Class C shareholder who redeems shares of
this Class within one year from the date of purchase. Class C Shares, together
with a pro-rata portion of all Class C Shares acquired through reinvestment of
dividends and other distributions paid in additional Class C Shares,
automatically convert to Class A Shares after 6 years. The Class Y shares are
only offered to institutions acting for an investor in a fiduciary, advisory,
agency, custodian or similar capacity and are not offered directly to retail
investors. Class Y shares are sold at net asset value without any sales charge,
redemption fees, contingent deferred sales charge or distribution or service
fees. On January 31, 1998 the Trust established Class I shares, which are
offered and sold only through financial intermediaries and are not offered
directly to retail investors. As of the report date, there were no Class I
shares outstanding. All classes of shares represent interests in the same
portfolio of investments and are identical as to rights and privileges but
differ with respect to the effect of sales charges, the distribution and/or
service fees borne by each class, expenses specific to each class, voting rights
on matters affecting a single class and the exchange privileges of each class.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies followed by
the Trust in the preparation of its financial statements. The policies are in
conformity with accounting principles generally accepted in the United States of
America for investment companies.

a) PORTFOLIO VALUATION: Municipal securities which have remaining maturities
of more than 60 days are valued each business day based upon information
provided by a nationally prominent independent pricing service and
periodically verified through other pricing services. In the case of
securities for which market quotations are readily available, securities
are valued by the pricing sevice at the mean of bid and asked quotations.
If market quotations or a valuation from the pricing service is not
readily available, the security is valued at fair value determined in good
faith under procedures established by and under the general supervision of
the Board of Trustees. Securities which mature in 60 days or less are
valued at amortized cost if their term to maturity at purchase is 60 days
or less, or by amortizing their unrealized appreciation or depreciation on
the 61st day prior to maturity, if their term to maturity at purchase
exceeds 60 days.

b) SECURITIES TRANSACTIONS AND RELATED INVESTMENT INCOME: Securities
transactions are recorded on the trade date. Realized gains and losses
from securities transactions are reported on the identified cost basis.
Interest income is recorded daily on the accrual basis and is adjusted for
amortization of premium and accretion of original issue and market
discount.

c) FEDERAL INCOME TAXES: It is the policy of the Trust to qualify as a
regulated investment company by complying with the provisions of the
Internal Revenue Code applicable to certain investment companies. The
Trust intends to make distributions of income and securities profits
sufficient to relieve it from all, or substantially all, Federal income
and excise taxes.

d) MULTIPLE CLASS ALLOCATION: All income, expenses (other than class-specific
expenses), and realized and unrealized gains or losses are allocated daily
to each class of shares based on the relative net assets of each class.
Class-specific expenses, which include distribution and service fees and
any other items that are specifically attributed to a particular class,
are charged directly to such class.

e) USE OF ESTIMATES: The preparation of financial statements in conformity
with accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements
and the reported amounts of increases and decreases in net assets from
operations during the reporting period. Actual results could differ from
those estimates.

f) RECLASSIFICATION OF CAPITAL ACCOUNTS: Accounting principles generally
accepted in the United States of America require that certain components
of net assets relating to permanent differences be reclassified between
financial and tax reporting. These reclassifications have no effect on net
assets or net asset value per share. On September 30, 2007, a
reclassification was made to decrease undistributed net investment income
by $202,771 and increase paid-in capital by $202,771.

g) ACCOUNTING PRONOUNCEMENTS: In July 2006, the Financial Accounting
Standards Board ("FASB") released FASB Interpretation No. 48 "Accounting
for Uncertainty in Income Taxes" ("FIN 48"). FIN 48 provides guidance for
how uncertain tax positions should be recognized, measured, presented and
disclosed in the financial statements. FIN 48 requires the evaluation of
tax positions taken or expected to be taken in the course of preparing the
Trust's tax returns to determine whether the tax positions are
"more-likely-than-not" of being sustained by the applicable tax authority.
Tax positions not deemed to meet the more-likely-than-not threshold would
be recorded as a tax benefit or expense in the current year. Adoption of
FIN 48 was effective for the Trust on March 31, 2008 and there were no
uncertain tax positions to be reflected in the Trust's financial
statements.

In September 2006, FASB issued FASB Statement No. 157, "Fair Value
Measurement" ("SFAS 157"), which defines fair value, establishes a
framework for measuring fair value, and expands disclosures about fair
value measurements. SFAS 157 is effective for fiscal years beginning after
November 15, 2007, and interim periods within those fiscal years. The
Trust believes adoption of SFAS 157 will have no material impact on the
Trust's financial statements.

3. FEES AND RELATED PARTY TRANSACTIONS

a) MANAGEMENT ARRANGEMENTS:

Aquila Investment Management LLC (the "Manager"), a wholly-owned
subsidiary of Aquila Management Corporation, the Trust's founder and sponsor,
serves as the Manager for the Trust under an Advisory and Administration
Agreement with the Trust. The portfolio management of the Trust has been
delegated to a Sub-Adviser as described below. Under the Advisory and
Administrative Agreement, the Manager provides all administrative services to
the Trust, other than those relating to the day-to-day portfolio management. The
Manager's services include providing the office of the Trust and all related
services as well as overseeing the activities of the Sub-Adviser and managing
relationships with all the various support organizations to the Trust such as
the shareholder servicing agent, custodian, legal counsel, auditors and
distributor and additionally maintaining the Trust's accounting books and
records. For its services, the Manager is entitled to receive a fee which is
payable monthly and computed as of the close of business each day at the annual
rate of 0.40% of the Trust's net assets.

FAF Advisors, Inc. (formerly known as U.S. Bancorp Asset Management, Inc.
until March 31, 2006) (the "Sub-Adviser") serves as the Investment Sub-Adviser
for the Trust under a Sub-Advisory Agreement between the Manager and the
Sub-Adviser. Under this agreement, the Sub-Adviser continuously provides,
subject to oversight of the Manager and the Board of Trustees of the Trust, the
investment program of the Trust and the composition of its portfolio, arranges
for the purchases and sales of portfolio securities, and provides for daily
pricing of the Trust's portfolio. For its services, the Sub-Adviser is entitled
to receive a fee from the Manager which is payable monthly and computed as of
the close of business each day at the annual rate of 0.18% on the Trust's net
assets.

Under a Compliance Agreement with the Manager, the Manager is compensated
for Chief Compliance Officer related services provided to enable the Trust to
comply with Rule 38a-1 of the Investment Company Act of 1940.

Specific details as to the nature and extent of the services provided by
the Manager and the Sub-Adviser are more fully defined in the Trust's Prospectus
and Statement of Additional Information.

b) DISTRIBUTION AND SERVICE FEES:

The Trust has adopted a Distribution Plan (the "Plan") pursuant to Rule
12b-1 (the "Rule") under the Investment Company Act of 1940. Under one part of
the Plan, with respect to Class A Shares, the Trust is authorized to make
service fee payments to broker-dealers or others ("Qualified Recipients")
selected by Aquila Distributors, Inc. (the "Distributor"), including, but not
limited to, any principal underwriter of the Trust, with which the Distributor
has entered into written agreements contemplated by the Rule and which have
rendered assistance in the distribution and/or retention of the Trust's shares
or servicing of shareholder accounts. The Trust makes payment of this service
fee at the annual rate of 0.15% of the Trust's average net assets represented by
Class A Shares. For the six months ended March 31, 2008, service fees on Class A
Shares amounted to $251,136 of which the Distributor retained $12,629.

Under another part of the Plan, the Trust is authorized to make payments
with respect to Class C Shares to Qualified Recipients which have rendered
assistance in the distribution and/or retention of the Trust's Class C shares or
servicing of shareholder accounts. These payments are made at the annual rate of
0.75% of the Trust's net assets represented by Class C Shares and for the six
months ended March 31, 2008, amounted to $86,497. In addition, under a
Shareholder Services Plan, the Trust is authorized to make service fee payments
with respect to Class C Shares to Qualified Recipients for providing personal
services and/or maintenance of shareholder accounts. These payments are made at
the annual rate of 0.25% of the Trust's net assets represented by Class C Shares
and for the six months ended March 31, 2008, amounted to $28,833. The total of
these payments made with respect to Class C Shares amounted to $115,330, of
which the Distributor retained $28,081.

Specific details about the Plans are more fully defined in the Trust's
Prospectus and Statement of Additional Information.

Under a Distribution Agreement, the Distributor serves as the exclusive
distributor of the Trust's shares. Through agreements between the Distributor
and various brokerage and advisory firms ("intermediaries"), the Trust's shares
are sold primarily through the facilities of these intermediaries having offices
within Oregon, with the bulk of sales commissions inuring to such
intermediaries. For the six months ended March 31, 2008, total commissions on
sales of Class A Shares amounted to $219,955 of which the Distributor received
$42,053.

c) OTHER RELATED PARTY TRANSACTIONS

For the six months ended March 31, 2008 the Trust incurred $47,220 of
legal fees allocable to Butzel Long PC, counsel to the Trust, for legal services
in conjunction with the Trust's ongoing operations. The Secretary of the Trust
is a shareholder in that firm.

4. PURCHASES AND SALES OF SECURITIES

During the six months ended March 31, 2008, purchases of securities and
proceeds from the sales of securities aggregated $32,628,042 and $38,219,712,
respectively.

At March 31, 2008, the aggregate tax cost for all securities was
$391,345,431. At March 31, 2008, the aggregate gross unrealized appreciation for
all securities in which there is an excess of value over tax cost amounted to
$13,933,180 and aggregate gross unrealized depreciation for all securities in
which there is an excess of tax cost over value amounted to $6,039,476 for a net
unrealized appreciation of $7,893,704.

5. PORTFOLIO ORIENTATION

Since the Trust invests principally and may invest entirely in double
tax-free municipal obligations of issuers within Oregon, it is subject to
possible risks associated with economic, political, or legal developments or
industrial or regional matters specifically affecting Oregon and whatever
effects these may have upon Oregon issuers' ability to meet their obligations.
Two such developments, Measure 5, a 1990 amendment to the Oregon Constitution,
as well as Measures 47 and 50, limit the taxing and spending authority of
certain Oregon governmental entities. These amendments could have an adverse
effect on the general financial condition of certain municipal entities that
would impair the ability of certain Oregon issuer's to pay interest and
principal on their obligations.

6. EXPENSES

The Trust has negotiated an expense offset arrangement with its custodian,
wherein it receives credit toward the reduction of custodian fees and other
Trust expenses whenever there are uninvested cash balances.The Statement of
Operations reflects the total expenses before any offset, the amount of offset
and the net expenses.

7. CAPITAL SHARE TRANSACTIONS

Transactions in Capital Shares of the Trust were as follows:

SIX MONTHS ENDED
MARCH 31, 2008 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2007
--------------------------- ---------------------------
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------

CLASS A SHARES:
Proceeds from shares sold .................. 1,064,883 $ 11,393,781 1,963,227 $ 21,071,232
Reinvested dividends and
distributions .......................... 363,856 3,890,285 754,782 8,097,572
Cost of shares redeemed .................... (1,616,649) (17,280,958) (4,332,249) (46,408,926)
---------- ------------ ---------- ------------
Net change ............................. (187,910) (1,996,892) (1,614,240) (17,240,122)
---------- ------------ ---------- ------------
CLASS C SHARES:
Proceeds from shares sold .................. 120,529 1,293,604 269,445 2,895,445
Reinvested dividends and
distributions .......................... 19,350 206,775 51,051 547,634
Cost of shares redeemed .................... (525,285) (5,614,179) (985,902) (10,581,284)
---------- ------------ ---------- ------------
Net change ............................. (385,406) (4,113,800) (665,406) (7,138,205)
---------- ------------ ---------- ------------
CLASS Y SHARES:
Proceeds from shares sold .................. 1,190,734 12,684,883 1,597,605 17,136,310
Reinvested dividends and
distributions .......................... 31,437 334,413 59,368 636,944
Cost of shares redeemed .................... (597,530) (6,414,189) (1,101,386) (11,854,508)
---------- ------------ ---------- ------------
Net change ............................. 624,641 6,605,107 555,587 5,918,746
---------- ------------ ---------- ------------
Total transactions in Trust
shares ..................................... 51,325 $ 494,415 (1,724,059) $(18,459,581)
========== ============ ========== ============

8. TRUSTEES' FEES AND EXPENSES

At March 31, 2008 there were 8 Trustees, one of which is affiliated with
the Manager and is not paid any fees. The total amount of Trustees' service and
attendance fees paid during the six months ended March 31, 2008 was $93,255, to
cover carrying out their responsibilities and attendance at regularly scheduled
quarterly Board Meetings and meetings of the Independent Trustees held prior to
each quarterly Board Meeting. When additional meetings (Audit, Nominating,
Shareholder and special meetings) are held, the meeting fees are paid to those
Trustees in attendance. Trustees are reimbursed for their expenses such as
travel, accommodations, and meals incurred in connection with attendance at
Board Meetings and at the Annual Meetings of Shareholders. For the six months
ended March 31, 2008, such meeting-related expenses amounted to $26,233.

9. SECURITIES TRADED ON A WHEN-ISSUED BASIS

The Trust may purchase or sell securities on a when-issued basis.
When-issued transactions arise when securities are purchased or sold by the
Trust with payment and delivery taking place in the future in order to secure
what is considered to be an advantageous price and yield to the Trust at the
time of entering into the transaction. On the date the Trust enters into a
when-issued transaction, cash or other liquid securities are segregated in an
amount equal to or greater than the value of the when-issued transaction. These
transactions are subject to market fluctuations and their current value is
determined in the same manner as for other securities.

10. INCOME TAX INFORMATION AND DISTRIBUTIONS

The Trust declares dividends daily from net investment income and makes
payments monthly in additional shares at the net asset value per share, in cash,
or in a combination of both, at the shareholder's option. Net realized capital
gains, if any, are distributed annually and are taxable.

The Trust intends to maintain, to the maximum extent possible, the
tax-exempt status of interest payments received from portfolio municipal
securities in order to allow dividends paid to shareholders from net investment
income to be exempt from regular Federal and State of Oregon income taxes.
However, due to differences between financial statement reporting and Federal
income tax reporting requirements, distributions made by the Trust may not be
the same as the Trust's net investment income, and/or net realized securities
gains. Further, a portion of the dividends may, under some circumstances, be
subject to taxes at ordinary income and/or capital gain rates.

As of September 30, 2007 there were post-October capital loss deferrals of
$110,292 which will be recognized in the following year.

The tax character of distributions:

Year Ended September 30,
2007 2006
------------ ------------
Net tax-exempt income $ 15,834,173 $ 16,356,601
Ordinary income 121,843 13,152
Capital gain 74,089 854,407
------------ ------------
$ 16,030,105 $ 17,224,160
============ ============

As of September 30, 2007, the components of distributable earnings on a
tax basis were as follows:

Unrealized appreciation $ 13,499,936
Undistributed tax-exempt
income 320,023
Other temporary differences (430,315)
------------
$ 13,389,644
============

At September 30, 2007, the difference between book basis and tax basis
unrealized appreciation is attributable primarily to premium/discount
adjustments.

11. RECENT DEVELOPMENTS

a) THE DAVIS CASE: In May, 2007, the U. S. Supreme Court agreed to hear an
appeal in DEPARTMENT OF REVENUE OF KENTUCKY V. DAVIS, a case concerning
the constitutionality of differential tax treatment for interest from
in-state vs. out-of-state municipal securities, a practice which is common
among the majority of the states. On May 19, 2008, the U. S. Supreme Court
upheld the right of states to tax interest on out-of-state municipal bonds
while exempting their own state's bond interest from taxation. The U.S.
Supreme Court said differential tax treatment for interest from in-state
vs. out-of-state municipal securities does not decriminate against
interstate commerce, but rather promotes the financing of essential
governmental services.

b) INSURERS: Over the past few months, municipal bond insurance companies
have been under review by the three major rating agencies Standard &
Poor's, Moody's and Fitch. The ratings of some of the insurance companies
have now either been downgraded and/or have a negative outlook. The
financial markets continue to assess the severity of the losses caused by
the subprime credit crisis and its impact on municipal bond insurance
companies and insured municipal bond prices.

TAX-FREE TRUST OF OREGON
FINANCIAL HIGHLIGHTS

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD

Class A
----------------------------------------------------------------------------
Six Months
Ended Year Ended September 30,
3/31/08 -----------------------------------------------------------
(unaudited) 2007 2006 2005 2004 2003
----------- ------- ------- ------- ------- -------

Net asset value, beginning of period ................ $ 10.68 $ 10.84 $ 10.91 $ 11.01 $ 11.04 $ 11.12
------- ------- ------- ------- ------- -------
Income (loss) from investment operations:
Net investment income ........................... 0.20++ 0.41+ 0.41+ 0.42+ 0.44+ 0.45+
Net gain (loss) on securities (both
realized and unrealized) .................... (0.10) (0.16) (0.05) (0.10) (0.01) (0.06)
------- ------- ------- ------- ------- -------
Total from investment operations ................ 0.10 0.25 0.36 0.32 0.43 0.39
------- ------- ------- ------- ------- -------
Less distributions (note 10):
Dividends from net investment income ............ (0.21) (0.41) (0.41) (0.41) (0.44) (0.45)
Distributions from capital gains ................ -- *** (0.02) (0.01) (0.02) (0.02)
------- ------- ------- ------- ------- -------
Total distributions ............................. (0.21) (0.41) (0.43) (0.42) (0.46) (0.47)
------- ------- ------- ------- ------- -------
Net asset value, end of period ...................... $ 10.57 $ 10.68 $ 10.84 $ 10.91 $ 11.01 $ 11.04
======= ======= ======= ======= ======= =======
Total return (not reflecting sales charge) .......... 0.89%* 2.37% 3.42% 2.98% 3.97% 3.65%

Ratios/supplemental data
Net assets, end of period (in millions) ......... $ 330 $ 336 $ 359 $ 369 $ 367 $ 361
Ratio of expenses to average net assets ......... 0.76%** 0.75% 0.75% 0.77% 0.72% 0.71%
Ratio of net investment income to average
net assets .................................. 3.80%** 3.77% 3.82% 3.79% 4.02% 4.11%
Portfolio turnover rate ......................... 8%* 22% 16% 14% 11% 12%

The expense ratios after giving effect to the expense offset for uninvested cash balances were:

Ratio of expenses to average net assets ......... 0.74%** 0.74% 0.74% 0.76% 0.71% 0.70%

- ----------
+ Per share amounts have been calculated using the monthly average shares
method.
++ Per share amounts have been calculated using the daily average shares
method.
* Not annualized.
** Annualized.
*** Less than $0.01 per share.

See accompanying notes to financial statements.

FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD

Class C
----------------------------------------------------------------------------
Six Months
Ended Year Ended September 30,
3/31/08 -----------------------------------------------------------
(unaudited) 2007 2006 2005 2004 2003
----------- ------- ------- ------- ------- -------

Net asset value, beginning of period ................ $10.68 $10.84 $10.90 $11.00 $11.03 $11.11
------ ------ ------ ------ ------ ------
Income (loss) from investment operations:
Net investment income ............................ 0.16++ 0.32+ 0.32+ 0.32+ 0.35+ 0.36+
Net gain (loss) on securities (both
realized and unrealized) ....................... (0.12) (0.16) (0.04) (0.09) (0.02) (0.06)
------ ------ ------ ------ ------ ------
Total from investment operations ................. 0.04 0.16 0.28 0.23 0.33 0.30
------ ------ ------ ------ ------ ------
Less distributions (note 10):
Dividends from net investment income. ............ (0.16) (0.32) (0.32) (0.32) (0.34) (0.36)
Distributions from capital gains ................. -- *** (0.02) (0.01) (0.02) (0.02)
------ ------ ------ ------ ------ ------
Total distributions .............................. (0.16) (0.32) (0.34) (0.33) (0.36) (0.38)
------ ------ ------ ------ ------ ------
Net asset value, end of period ...................... $10.56 $10.68 $10.84 $10.90 $11.00 $11.03
====== ====== ====== ====== ====== ======
Total return (not reflecting sales charge) .......... 0.37%* 1.51% 2.64% 2.10% 3.09% 2.77%

Ratios/supplemental data
Net assets, end of period (in millions) .......... $20.9 $25.3 $32.9 $41.9 $41.4 $43.9
Ratio of expenses to average net assets .......... 1.62%** 1.60% 1.60% 1.62% 1.57% 1.55%
Ratio of net investment income to
average net assets ............................. 2.95%** 2.92% 2.97% 2.94% 3.17% 3.22%
Portfolio turnover rate .......................... 8%* 22% 16% 14% 11% 12%

The expense ratios after giving effect to the expense offset for uninvested cash balances were:

Ratio of expenses to average net assets .......... 1.60%** 1.59% 1.59% 1.61% 1.56% 1.54%

Class Y
----------------------------------------------------------------------------
Six Months
Ended Year Ended September 30,
3/31/08 -----------------------------------------------------------
(unaudited) 2007 2006 2005 2004 2003
----------- ------- ------- ------- ------- -------

Net asset value, beginning of period ................ $10.68 $10.84 $10.90 $11.00 $11.03 $11.11
------ ------ ------ ------ ------ ------
Income (loss) from investment operations:
Net investment income ............................ 0.21++ 0.43+ 0.43+ 0.43+ 0.46+ 0.47+
Net gain (loss) on securities (both
realized and unrealized) ....................... (0.12) (0.16) (0.04) (0.09) (0.02) (0.06)
------ ------ ------ ------ ------ ------
Total from investment operations ................. 0.09 0.27 0.39 0.34 0.44 0.41
------ ------ ------ ------ ------ ------
Less distributions (note 10):
Dividends from net investment income. ............ (0.21) (0.43) (0.43) (0.43) (0.45) (0.47)
Distributions from capital gains ................. -- *** (0.02) (0.01) (0.02) (0.02)
------ ------ ------ ------ ------ ------
Total distributions .............................. (0.21) (0.43) (0.45) (0.44) (0.47) (0.49)
------ ------ ------ ------ ------ ------
Net asset value, end of period ...................... $10.56 $10.68 $10.84 $10.90 $11.00 $11.03
====== ====== ====== ====== ====== ======
Total return (not reflecting sales charge) .......... 0.88%* 2.52% 3.67% 3.11% 4.13% 3.80%

Ratios/supplemental data
Net assets, end of period (in millions) .......... $55.3 $49.2 $43.9 $36.0 $37.0 $37.1
Ratio of expenses to average net assets .......... 0.61%** 0.60% 0.60% 0.62% 0.57% 0.56%
Ratio of net investment income to
average net assets ............................. 3.94%** 3.92% 3.97% 3.95% 4.17% 4.26%
Portfolio turnover rate .......................... 8%* 22% 16% 14% 11% 12%

The expense ratios after giving effect to the expense offset for uninvested cash balances were:

Ratio of expenses to average net assets .......... 0.59%** 0.59% 0.59% 0.61% 0.56% 0.55%

- ----------
+ Per share amounts have been calculated using the monthly average shares
method.
++ Per share amounts have been calculated using the daily average shares
method.
* Not Annualized.
** Annualized.
*** Less than $0.01 per share.

See accompanying notes to financial statements.

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

ANALYSIS OF EXPENSES (UNAUDITED)

As a shareholder of the Trust, you may incur two types of costs: (1)
transaction costs, including front-end sales charges with respect to Class A
shares or contingent deferred sales charges ("CDSC") with respect to Class C
shares; and (2) ongoing costs, including management fees; distribution and/or
service (12b-1) fees; and other Trust expenses. The table below is intended to
help you understand your ongoing costs (in dollars) of investing in the Trust
and to compare these costs with the ongoing costs of investing in other mutual
funds.

The table below is based on an investment of $1,000 invested on October 1,
2007 and held for the six months ended March 31, 2008.

ACTUAL EXPENSES

This table provides information about actual account values and actual
expenses. You may use the information provided in this table, together with the
amount you invested, to estimate the expenses that you paid over the period. To
estimate the expenses you paid on your account, divide your ending account value
by $1,000 (for example, an $8,600 ending account value divided by $1,000 = 8.6),
then multiply the result by the number under the heading entitled "Expenses Paid
During the Period".

SIX MONTHS ENDED MARCH 31, 2008

ACTUAL
TOTAL RETURN BEGINNING ENDING EXPENSES
WITHOUT ACCOUNT ACCOUNT PAID DURING
SALES CHARGES(1) VALUE VALUE THE PERIOD(2)
- --------------------------------------------------------------------------------
Class A 0.89% $1,000.00 $1,008.90 $3.72
- --------------------------------------------------------------------------------
Class C 0.37% $1,000.00 $1,003.70 $8.01
- --------------------------------------------------------------------------------
Class Y 0.88% $1,000.00 $1,008.80 $2.96
- --------------------------------------------------------------------------------

(1) ASSUMES REINVESTMENT OF ALL DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS, IF
ANY, AT NET ASSET VALUE AND DOES NOT REFLECT THE DEDUCTION OF THE
APPLICABLE SALES CHARGES WITH RESPECT TO CLASS A SHARES OR THE APPLICABLE
CONTINGENT DEFERRED SALES CHARGES ("CDSC") WITH RESPECT TO CLASS C SHARES.
TOTAL RETURN IS NOT ANNUALIZED, AS IT MAY NOT BE REPRESENTATIVE OF THE
TOTAL RETURN FOR THE YEAR.

(2) EXPENSES ARE EQUAL TO THE ANNUALIZED EXPENSE RATIO OF 0.74%, 1.60% AND
0.59% FOR THE TRUST'S CLASS A, C AND Y SHARES, RESPECTIVELY, MULTIPLIED BY
THE AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED BY 183/366 (TO
REFLECT THE ONE-HALF YEAR PERIOD).

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

ANALYSIS OF EXPENSES (UNAUDITED) (CONTINUED)

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The table below provides information about hypothetical account values and
hypothetical expenses based on the actual expense ratio and an assumed rate of
return of 5.00% per year before expenses, which is not the Trust's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period. You may
use the information provided in this table to compare the ongoing costs of
investing in the Trust and other mutual funds. To do so, compare this 5.00%
hypothetical example relating to the Trust with the 5.00% hypothetical examples
that appear in the shareholder reports of other mutual funds.

Please note that the expenses shown in the table below are meant to
highlight your ongoing costs only and do not reflect any transactional costs,
with respect to Class A shares. The example does not reflect the deduction of
contingent deferred sales charges ("CDSC") with respect to Class C shares.
Therefore, the table is useful in comparing ongoing costs only, and will not
help you determine the relative total costs of owning different mutual funds. In
addition, if these transaction costs were included, your costs would have been
higher.

SIX MONTHS ENDED MARCH 31, 2008

HYPOTHETICAL
ANNUALIZED BEGINNING ENDING EXPENSES
TOTAL ACCOUNT ACCOUNT PAID DURING
RETURN VALUE VALUE THE PERIOD(1)
- --------------------------------------------------------------------------------
Class A 5.00% $1,000.00 $1,021.30 $3.74
- --------------------------------------------------------------------------------
Class C 5.00% $1,000.00 $1,017.00 $8.07
- --------------------------------------------------------------------------------
Class Y 5.00% $1,000.00 $1,022.05 $2.98
- --------------------------------------------------------------------------------

(1) EXPENSES ARE EQUAL TO THE ANNUALIZED EXPENSE RATIO OF 0.74%, 1.60% AND
0.59% FOR THE TRUST'S CLASS A, C AND Y SHARES, RESPECTIVELY, MULTIPLIED BY
THE AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED BY 183/366 (TO
REFLECT THE ONE-HALF YEAR PERIOD).

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

INFORMATION AVAILABLE (UNAUDITED)

Much of the information that the funds in the Aquila Group of Funds
produce is automatically sent to you and all other shareholders. Specifically,
you are routinely sent the entire list of portfolio securities of your Trust
twice a year in the semi-annual and annual reports you receive. Additionally, we
prepare, and have available, portfolio listings at the end of each quarter.
Whenever you may be interested in seeing a listing of your Trust's portfolio
other than in your shareholder reports, please check our website
http://www.aquilafunds.com or call us at 1-800-437-1020.

The Trust additionally files a complete list of its portfolio holdings
with the SEC for the first and third quarters of each fiscal year on Form N-Q
which is available free of charge on the SEC website at http://www.sec.gov. You
may also review or, for a fee, copy the forms at the SEC's Public Reference Room
in Washington, DC or by calling 800-SEC-0330.

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

PROXY VOTING RECORD (UNAUDITED)

The Trust does not invest in equity securities. Accordingly, there were no
matters relating to a portfolio security considered at any shareholder meeting
held during the 12 months ended June 30, 2007 with respect to which the Trust
was entitled to vote. Applicable regulations require us to inform you that the
foregoing proxy voting information is available on the SEC website at
http://www.sec.gov.

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

(THIS PAGE INTENTIONALLY LEFT BLANK)

FOUNDERS

Lacy B. Herrmann, Chairman Emeritus
Aquila Management Corporation

MANAGER

AQUILA INVESTMENT MANAGEMENT LLC
380 Madison Avenue, Suite 2300
New York, New York 10017

INVESTMENT SUB-ADVISER

faf advisOrs, INC.
555 S.W. Oak Street
U.S. Bancorp Tower
Portland, Oregon 97204

BOARD OF TRUSTEES

James A. Gardner, Chair
Diana P. Herrmann, Vice Chair
Gary C. Cornia
Edmund P. Jensen
John W. Mitchell
Ralph R. Shaw
Nancy Wilgenbusch

OFFICERS

Diana P. Herrmann, President
James M. McCullough, Senior Vice President
Sally J. Church, Vice President
Christine L. Neimeth, Vice President
Robert W. Anderson, Chief Compliance Officer
Joseph P. DiMaggio, Chief Financial Officer
and Treasurer
Edward M.W. Hines, Secretary

DISTRIBUTOR

AQUILA DISTRIBUTORS, INC.
380 Madison Avenue, Suite 2300
New York, New York 10017

TRANSFER AND SHAREHOLDER SERVICING AGENT

PFPC Inc.
101 Sabin Street
Pawtucket, RI 02860

CUSTODIAN

JPMorgan Chase Bank, N.A.
1111 Polaris Parkway
Columbus, Ohio 43240

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Tait, Weller & Baker LLP
1818 Market Street, Suite 2400
Philadelphia, PA 19103

Further information is contained in the Prospectus,
which must precede or accompany this report.

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.

Included in Item 1 above

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

The Board of Directors of the Registrant has adopted a Nominating
Committee Charter which provides that the Nominating Committee (the 'Committee')
may consider and evaluate nominee candidates properly submitted by shareholders
if a vacancy among the Independent Trustees of the Registrant occurs and if,
based on the Board's then current size, composition and structure, the Committee
determines that the vacancy should be filled. The Committee will consider
candidates submitted by shareholders on the same basis as it considers and
evaluates candidates recommended by other sources. A copy of the qualifications
and procedures that must be met or followed by shareholders to properly submit
a nominee candidate to the Committee may be obtained by submitting a request
in writing to the Secretary of the Registrant.

ITEM 11. CONTROLS AND PROCEDURES.

(a) Based on their evaluation of the registrant's disclosure controls and
procedures (as defined in Rule 30a-2(c) under the Investment Company Act of
1940) as of a date within 90 days of the fling of this report, the registrant's
chief financial and executive officers have concluded that the disclosure
controls and procedures of the registrant are appropriately designed to ensure
that information required to be disclosed in the registrant's reports that are
filed under the Securities Exchange Act of 1934 are accumulated and communicated
to registrant's management, including its principal executive officer(s) and
principal financial officer(s), to allow timely decisions regarding required
disclosure and is recorded, processed, summarized and reported, within the time
periods specified in the rules and forms adopted by the Securities and Exchange
Commission.

(b) There have been no significant changes in registrant's internal controls or
in other factors that could significantly affect registrant's internal controls
subsequent to the date of the most recent evaluation, including no significant
deficiencies or material weaknesses that required corrective action.

ITEM 12. EXHIBITS.

(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) Certifications of principal executive officer and principal 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.

TAX-FREE TRUST OF OREGON

By: /s/ Diana P. Herrmann
- - ---------------------------------
Vice Chair, President and Trustee
June 5, 2008

By: /s/ Joseph P. DiMaggio
- - -----------------------------------
Chief Financial Officer
June 5, 2008

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 and in the capacities and on
the dates indicated.

By: /s/ Diana P. Herrmann
- - ---------------------------------
Diana P. Herrmann
Vice Chair, President and Trustee
June 5, 2008

By: /s/ Joseph P. DiMaggio
- - -----------------------------------
Joseph P. DiMaggio
Chief Financial Officer and Treasurer
June 5, 2008

TAX-FREE TRUST OF OREGON

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.