-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, N5QBWSAU6tmjJL62oFiJcXu36mkP0ZimgNqPJPhBAIfTvpMoQYzDOXUJ77pT2b+E aMG4U2w01sE4zJ6ZbbbJog== 0000757010-05-000017.txt : 20050728 0000757010-05-000017.hdr.sgml : 20050728 20050728150820 ACCESSION NUMBER: 0000757010-05-000017 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20050531 FILED AS OF DATE: 20050728 DATE AS OF CHANGE: 20050728 EFFECTIVENESS DATE: 20050728 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FRANKLIN TAX FREE TRUST CENTRAL INDEX KEY: 0000757010 IRS NUMBER: 000000000 STATE OF INCORPORATION: MA FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-04149 FILM NUMBER: 05980793 BUSINESS ADDRESS: STREET 1: ONE FRANKLIN PARKWAY CITY: SAN MATEO STATE: CA ZIP: 94403-1906 BUSINESS PHONE: 650-312-2000 MAIL ADDRESS: STREET 1: ONE FRANKLIN PARKWAY CITY: SAN MATEO STATE: CA ZIP: 94403-1906 N-Q 1 ftftnqform.txt FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY Investment Company Act file number 811-04149 Franklin Tax-Free Trust (Exact name of registrant as specified in charter) One Franklin Parkway, San Mateo, CA 94403-1906 (Address of principal executive offices) (Zip code) Murray L. Simpson, One Franklin Parkway, San Mateo, CA 94403-1906 (Name and address of agent for service) Registrant's telephone number, including area code: 650 312-2000 Date of fiscal year end: 2/28 Date of reporting period: 5/31/05 Item 1. Schedule of Investments. FRANKLIN TAX-FREE TRUST QUARTERLY STATEMENTS OF INVESTMENTS MAY 31, 2005 - -------------------------------------------------------------------------------- CONTENTS Franklin Alabama Tax-Free Income Fund .................................... 3 Franklin Arizona Tax-Free Income Fund .................................... 7 Franklin Colorado Tax-Free Income Fund ................................... 13 Franklin Connecticut Tax-Free Income Fund ................................ 17 Franklin Double Tax-Free Income Fund ..................................... 21 Franklin Federal Intermediate-Term Tax-Free Income Fund .................. 25 Franklin Federal Limited-Term Tax-Free Income Fund ....................... 35 Franklin Florida Insured Tax-Free Income Fund ............................ 41 Franklin Florida Tax-Free Income Fund .................................... 45 Franklin Georgia Tax-Free Income Fund .................................... 55 Franklin High Yield Tax-Free Income Fund ................................. 59 Franklin Insured Tax-Free Income Fund .................................... 85 Franklin Kentucky Tax-Free Income Fund ................................... 101 Franklin Louisiana Tax-Free Income Fund .................................. 105 Franklin Maryland Tax-Free Income Fund ................................... 109 Franklin Massachusetts Insured Tax-Free Income Fund ...................... 113 Franklin Michigan Insured Tax-Free Income Fund ........................... 117 Franklin Minnesota Insured Tax-Free Income Fund .......................... 125 Franklin Missouri Tax-Free Income Fund ................................... 133 Franklin New Jersey Tax-Free Income Fund ................................. 139 Franklin North Carolina Tax-Free Income Fund ............................. 145 Franklin Ohio Insured Tax-Free Income Fund ............................... 151 Franklin Oregon Tax-Free Income Fund ..................................... 163 Franklin Pennsylvania Tax-Free Income Fund ............................... 169 Franklin Virginia Tax-Free Income Fund ................................... 175 Selected Portfolio Abbreviations ......................................... 180 Notes to Statements of Investments ....................................... 181 [LOGO](R) FRANKLIN TEMPLETON INVESTMENTS FRANKLIN o Templeton o Mutual Series Quarterly Statements of Investments | 1 This page intentionally left blank. FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN ALABAMA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 99.2% BONDS 99.2% ALABAMA 89.5% Alabama Building Renovation Finance Authority Revenue, Refunding, AMBAC Insured, 5.625%, 9/01/24 ............................................................................... $ 2,500,000 $ 2,766,575 Alabama Drinking Water Finance Authority Revenue, Revolving Fund Loan, Series A, AMBAC Insured, 5.25%, 8/15/24 ................................................................. 1,755,000 1,888,046 Alabama HFA, SFMR, Series D-2, GNMA Secured, 5.75%, 10/01/23 .................................... 840,000 863,848 Alabama State Docks Department Docks Facilities Revenue, MBIA Insured, 6.30%, 10/01/21 ................................................................ 4,500,000 4,770,225 Refunding, MBIA Insured, 5.50%, 10/01/22 ..................................................... 1,000,000 1,086,020 Alabama State IDA, Solid Waste Disposal Revenue, Pine City Fiber Co., 6.45%, 12/01/23 ........... 2,000,000 2,117,000 Alabama Water Pollution Control Authority Revenue, Fund Loan, Series A, AMBAC Insured, 5.00%, 8/15/23 ................................................................................ 4,435,000 4,705,047 Alabaster GO, wts., AMBAC Insured, Pre-Refunded, 5.00%, 9/01/24 ...................................................................................... 3,470,000 3,836,848 9/01/27 ...................................................................................... 1,500,000 1,658,580 Alabaster Sewer Revenue, AMBAC Insured, 5.00%, 4/01/29 .......................................... 2,055,000 2,173,553 Athens Electric Revenue, wts., MBIA Insured, 6.00%, 6/01/25 ............................................................................... 370,000 377,400 Pre-Refunded, 6.00%, 6/01/25 ................................................................. 630,000 642,600 Auburn GO, FSA Insured, 5.00%, 1/01/24 .......................................................... 1,500,000 1,595,655 Auburn University Athletic Revenue, Series A, FSA Insured, 5.00%, 4/01/32 ....................... 2,000,000 2,106,320 Baldwin County Eastern Shore Health Care Authority Hospital Revenue, 5.75%, 4/01/27 ............. 1,000,000 1,002,410 Bessemer, wts., XLCA Insured, 5.00%, 2/01/35 .................................................... 1,990,000 2,102,773 Birmingham Baptist Medical Center Special Care Facilities Financing Authority Revenue, Baptist Health System Inc., Refunding, MBIA Insured, 5.875%, 11/15/19 ..................................................................................... 3,500,000 3,704,575 11/15/26 ..................................................................................... 2,000,000 2,116,900 Birmingham GO, Refunding and Capital Improvement, Series B, AMBAC Insured, 5.00%, 12/01/32 ...................................................................................... 4,000,000 4,185,600 Birmingham Southern College Private Educational Building Authority Tuition Revenue, Refunding, 5.35%, 12/01/19 .................................................................... 1,000,000 1,018,790 Clarke and Mobile Counties Gas District Revenue, AMBAC Insured, 5.875%, 12/01/23 ................ 4,000,000 4,499,600 Coffee County PBA, Building Revenue, MBIA Insured, 5.00%, 9/01/27 ................................................................. 2,145,000 2,257,291 wts., FSA Insured, Pre-Refunded, 6.10%, 9/01/16 .............................................. 1,000,000 1,059,610 Courtland IDBR, Environmental Improvement Revenue, Champion International Corp. Project, Refunding, 6.40%, 11/01/26 ............................................................................. 2,000,000 2,103,520 Solid Waste Disposal Revenue, Champion International Corp. Project, Series A, 6.50%, 9/01/25 ..................................................................................... 5,000,000 5,144,550 Culman and Jefferson County Gas District Gas Revenue, MBIA Insured, 5.85%, 7/01/24 .............. 2,000,000 2,254,380 Etowah County Board Education GO, Special Tax School wts., FSA Insured, 5.00%, 9/01/24 ...................................................................................... 4,235,000 4,499,095 9/01/28 ...................................................................................... 2,000,000 2,111,820 9/01/33 ...................................................................................... 2,500,000 2,623,775 Fairfield GO, wts., Refunding, AMBAC Insured, 5.00%, 2/01/29 .................................... 1,500,000 1,585,170 Fairfield IDB Environmental Improvement Revenue, USX Corp. Project, Refunding, 5.45%, 9/01/14 ............................................................................... 2,000,000 2,114,720 Series A, 6.70%, 12/01/24 .................................................................... 3,500,000 3,556,000
Quarterly Statements of Investments | 3 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN ALABAMA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) ALABAMA (CONT.) Florence Electric Revenue, wts., FSA Insured, 5.25%, 6/01/19 .................................... $ 1,415,000 $ 1,519,427 Florence GO, wts., Series B, FGIC Insured, 5.00%, 9/01/23 ....................................... 2,500,000 2,661,300 Franklin County wts., Series B, AMBAC Insured, 5.125%, 10/01/33 ................................. 2,000,000 2,131,660 Gulf Shores GO, wts., AMBAC Insured, 6.00%, 9/01/21 ............................................................................... 770,000 802,956 Pre-Refunded, 6.00%, 9/01/21 ................................................................. 1,165,000 1,215,666 Houston County Health Care Authority Revenue, AMBAC Insured, 6.125%, 10/01/25 ............................................................................. 1,000,000 1,121,260 6.25%, 10/01/30 .............................................................................. 3,150,000 3,569,548 Huntsville Capital Improvement GO, Series A, AMBAC Insured, 5.00%, 2/01/23 ...................... 1,000,000 1,060,630 Huntsville Health Care Authority Revenue, Series A, MBIA Insured, 5.40%, 6/01/22 ............................................................................... 4,000,000 4,361,680 5.50%, 6/01/27 ............................................................................... 3,820,000 4,212,696 Huntsville PBA, Lease Revenue, Municipal Justice and Public Safety Center, MBIA Insured, 5.00%, 10/01/25 ..................................................................................... 5,000,000 5,310,850 10/01/29 ..................................................................................... 4,000,000 4,219,800 Jacksonville State University Tuition and Fee, Revenue, MBIA Insured, 5.00%, 12/01/22 ........... 3,000,000 3,173,970 Jefferson County Ltd. Obligation School wts. Revenue, Series A, 5.00%, 1/01/24 .................. 2,000,000 2,093,640 Jefferson County Sewer Revenue, Capital Improvement, wts., Series A, FGIC Insured, Pre-Refunded, 5.00%, 2/01/33 .............. 1,000,000 1,078,510 Capital Improvement, wts., Series A, FGIC Insured, Pre-Refunded, 5.375%, 2/01/36 ............. 6,000,000 6,548,520 Series D, FGIC Insured, Pre-Refunded, 5.00%, 2/01/32 ......................................... 3,000,000 3,322,770 wts., ETM, 7.50%, 9/01/13 .................................................................... 200,000 224,018 wts., Series D, FGIC Insured, Pre-Refunded, 5.75%, 2/01/27 ................................... 6,000,000 6,339,360 Lauderdale County and Florence Health Care Authority Revenue, Coffee Health Group, Series A, MBIA Insured, 5.625%, 7/01/21 .............................................................................. 3,000,000 3,331,080 5.375%, 7/01/29 .............................................................................. 3,095,000 3,287,107 Pre-Refunded, 5.375%, 7/01/29 ................................................................ 1,905,000 2,093,500 Madison County Board of Education Capital Outlay GO, Tax Anticipation wts., Series A, AMBAC Insured, 5.00%, 9/01/34 ................................................................. 1,000,000 1,054,430 Madison GO, wts., AMBAC Insured, 5.35%, 2/01/26 ................................................. 2,410,000 2,591,208 Marshall County Health Care Authority Hospital Revenue, Series A, 5.75%, 1/01/32 ................ 2,170,000 2,292,518 Mobile County Board School Commissioners GO, Capital Outlay wts., Series B, AMBAC Insured, 5.10%, 3/01/22 ............................................................................... 2,265,000 2,392,791 5.125%, 3/01/31 .............................................................................. 8,230,000 8,631,542 Mobile Housing Assistance Corp. MFHR, Refunding, Series A, FSA Insured, 7.625%, 2/01/21 ....................................................................................... 1,220,000 1,221,830 Montgomery Medical Clinic Board Health Care Facilities Revenue, Jackson Hospital and Clinic, Refunding, AMBAC Insured, 6.00%, 3/01/26 ...................................................... 6,000,000 6,245,820 Morgan County GO, wts., AMBAC Insured, 5.00%, 4/01/29 ........................................... 1,975,000 2,088,938 Moulton Water Works Board Water Revenue, MBIA Insured, 5.375%, 1/01/32 .......................... 1,935,000 2,075,655 Muscle Shoals GO, wts., MBIA Insured, 5.80%, 8/01/16 ............................................................................... 295,000 306,416 5.90%, 8/01/25 ............................................................................... 1,210,000 1,257,202 5.50%, 8/01/30 ............................................................................... 2,150,000 2,357,260
4 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN ALABAMA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) ALABAMA (CONT.) Muscle Shoals GO, wts., MBIA Insured, (cont.) Pre-Refunded, 5.80%, 8/01/16 ................................................................. $ 1,430,000 $ 1,486,599 Pre-Refunded, 5.90%, 8/01/25 ................................................................. 5,790,000 6,022,932 Orange Beach Water Sewer and Fire Protection Authority Revenue, MBIA Insured, 5.00%, 5/15/30 ...................................................................................... 1,500,000 1,591,725 5/15/35 ...................................................................................... 6,000,000 6,346,920 Oxford GO, School wts., AMBAC Insured, 6.00%, 5/01/30 ........................................... 4,275,000 4,800,611 Russellville GO, wts., MBIA Insured, Pre-Refunded, 5.75%, 12/01/26 .............................. 2,500,000 2,652,500 Sheffield GO, wts., AMBAC Insured, 5.125%, 5/01/33 .............................................. 2,610,000 2,774,587 St. Clair County Board of Education, School Tax Anticipation wts., Series C, FSA Insured, 5.85%, 2/01/29 ................................................................................ 4,815,000 5,293,418 Sylacauga GO, wts., AMBAC Insured, 5.50%, 6/01/25 ............................................... 1,700,000 1,865,053 Tallahassee GO, Water, Gas and Sewer Waste, AMBAC Insured, 5.25%, 5/01/31 ....................... 1,135,000 1,218,593 Troy State University Student Fee Revenue, MBIA Insured, 5.00%, 11/01/21 ........................ 2,215,000 2,374,480 University of Alabama General Revenue, Series A, MBIA Insured, 5.00%, 7/01/29 ................... 1,000,000 1,060,610 University of Montavello Revenue, FSA Insured, 5.30%, 5/01/22 ................................... 1,940,000 2,098,595 University of North Alabama General Fee Revenue, Series A, FSA Insured, 5.375%, 11/01/17 ...................................................................................... 4,395,000 4,748,754 University of North Alabama Student Housing Revenue, FGIC Insured, 5.00%, 11/01/29 .............. 2,995,000 3,161,013 Valley Special Care Facilities Financing Authority Revenue, Lanier Memorial Hospital, Series A, 5.65%, 11/01/22 ............................................................................... 3,465,000 3,471,480 Warrior River Water Authority Water Revenue, FSA Insured, 5.40%, 8/01/29 ............................................................................... 4,250,000 4,598,330 5.50%, 8/01/34 ............................................................................... 4,735,000 5,106,887 ------------ 235,396,941 ------------ U. S. TERRITORIES 9.7% Puerto Rico Commonwealth GO, Public Improvement, Series A, 5.125%, 7/01/31 .................................................................... 3,550,000 3,708,933 Series A, Pre-Refunded, 5.125%, 7/01/31 ...................................................... 1,450,000 1,609,790 FSA Insured, 5.125%, 7/01/30 ................................................................. 1,115,000 1,192,604 FSA Insured, Pre-Refunding, 5.25%, 7/01/27 ................................................... 1,495,000 1,670,020 FSA Insured, Pre-Refunding, 5.125%, 7/01/30 .................................................. 1,885,000 2,092,727 FSA Insured, Refunding, 5.25%, 7/01/27 ....................................................... 1,005,000 1,080,566 Puerto Rico Electric Power Authority Power Revenue, Series II, FSA Insured, 5.125%, 7/01/26 ....................................................................................... 5,000,000 5,407,100 Puerto Rico PBA Revenue, Guaranteed Government Facilities, Series G, 5.00%, 7/01/26 ................................... 1,000,000 1,048,510 Government Facilities, Series D, 5.25%, 7/01/27 .............................................. 760,000 814,644 Government Facilities, Series D, Pre-Refunded, 5.25%, 7/01/27 ................................ 2,305,000 2,571,181 Virgin Islands PFAR, senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/13 ..................................................................................... 1,700,000 1,826,548 10/01/22 ..................................................................................... 2,300,000 2,439,081 ------------ 25,461,704 ------------ TOTAL LONG TERM INVESTMENTS (COST $242,929,208) ................................................. 260,858,645 ------------
Quarterly Statements of Investments | 5 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN ALABAMA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM INVESTMENT (COST $2,700,000) 1.0% BOND 1.0% ALABAMA 1.0% (a)West Jefferson IDB, PCR, Alabama Power Co. Project, Refunding, Daily VRDN and Put, 2.95%, 6/01/28 ....................................................................................... $ 2,700,000 $ 2,700,000 ------------ TOTAL INVESTMENTS (COST $245,629,208) 100.2% .................................................... 263,558,645 OTHER ASSETS, LESS LIABILITIES (0.2)% ........................................................... (632,823) ------------ NET ASSETS 100.0% ............................................................................... $262,925,822 ============
See Selected Portfolio Abbreviations on page 180. (a) Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. 6 | See Notes to Statements of Investments. | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN ARIZONA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 97.8% BONDS 97.8% ARIZONA 77.8% Arizona Educational Loan Marketing Corp. Revenue, Senior Series, 6.375%, 9/01/05 ............................................................... $10,000,000 $ 10,091,900 Sub Series, 6.625%, 9/01/05 .................................................................. 1,000,000 1,005,310 Arizona Health Facilities Authority Hospital System Revenue, John C. Lincoln Health Network, 5.75%, 12/01/32 .............................................. 3,280,000 3,481,162 Phoenix Baptist Hospital, MBIA Insured, ETM, 6.25%, 9/01/11 .................................. 1,555,000 1,633,232 Arizona Health Facilities Authority Revenue, Catholic Healthcare West, Series A, 6.625%, 7/01/20 ....................................................................................... 6,390,000 7,234,247 Arizona School Facilities Board Revenue, State School Improvement, 5.00%, 7/01/19 ............... 2,000,000 2,157,240 Arizona State Board of Regents COP, University of Arizona Main Campus, Series A-1, AMBAC Insured, 5.125%, 6/01/25 ................................................................ 2,000,000 2,121,060 Arizona State Municipal Financing Program COP, Dysart School, Series 22, BIG Insured, ETM, 7.875%, 8/01/05 .................................. 1,350,000 1,361,610 Refunding, Series 14, AMBAC Insured, 5.00%, 8/01/33 .......................................... 1,000,000 1,045,200 Series 20, BIG Insured, ETM, 7.625%, 8/01/06 ................................................. 2,240,000 2,308,074 Arizona State University COP, Arizona State University Project-2002, MBIA Insured, 5.00%, 7/01/20 .......................... 5,475,000 5,826,769 Arizona State University Project-2002, MBIA Insured, 5.00%, 7/01/21 .......................... 5,965,000 6,329,342 Arizona State University Project-2002, MBIA Insured, 5.10%, 7/01/23 .......................... 3,545,000 3,787,691 Arizona State University Project-2002, MBIA Insured, 5.10%, 7/01/24 .......................... 1,875,000 1,999,800 Arizona State University Project-2002, MBIA Insured, 5.10%, 7/01/25 .......................... 2,640,000 2,812,366 Downtown Campus/Mercado Project, Series A, MBIA Insured, 5.80%, 7/01/24 ...................... 1,350,000 1,423,885 Research Infrastructure Projects, AMBAC Insured, 5.00%, 9/01/30 .............................. 17,250,000 18,269,992 Research Infrastructure Projects, Series A, AMBAC Insured, 5.00%, 9/01/27 .................... 2,915,000 3,097,333 Arizona State University Revenue, FGIC Insured, 5.00%, 7/01/23 ............................................................................... 2,890,000 3,061,030 5.00%, 7/01/25 ............................................................................... 2,250,000 2,376,067 Pre-Refunded, 5.875%, 7/01/25 ................................................................ 1,000,000 1,118,000 Arizona State University Revenues, System, Refunding, AMBAC Insured, 5.00%, 7/01/27 ............. 1,895,000 2,029,734 Arizona Student Loan Acquisition Authority Student Loan Revenue, junior subordinate, Refunding, Series B-1, 6.15%, 5/01/29 .................................... 1,000,000 1,072,160 Refunding, Senior Series A-1, 5.90%, 5/01/24 ................................................. 1,500,000 1,607,760 Arizona Tourism and Sports Authority Tax Revenue, Multipurpose Stadium Facility, Series A, MBIA Insured, 5.00%, 7/01/28 .................................................................. 7,000,000 7,399,700 Casa Grande IDA, IDR, Frito Lay/PepsiCo, 6.65%, 12/01/14 ...................................................... 500,000 506,590 PCR, Frito Lay/PepsiCo, 6.60%, 12/01/10 ...................................................... 1,800,000 1,823,688 Chandler IDA, MFHR, Hacienda Apartments Project, Refunding, Series A, GNMA Secured, 6.05%, 7/20/30 ................................................................................ 4,055,000 4,058,812 Douglas Community Housing Corp. MFR, Rancho La Perilla, Series A, GNMA Secured, 6.125%, 7/20/41 ....................................................................................... 2,240,000 2,388,109 Eloy Municipal Property Corp. Facilities Revenue, 7.80%, 7/01/09 ................................ 240,000 242,542 Gila County IDAR, Asarco Inc., Refunding, 5.55%, 1/01/27 ........................................ 20,000,000 18,871,600 Glendale IDA Educational Facilities Revenue, American Graduate School International, Connie Lee Insured, Pre-Refunded, 7.00%, 7/01/14 ............................................. 1,000,000 1,013,460 Connie Lee Insured, Pre-Refunded, 7.125%, 7/01/20 ............................................ 1,250,000 1,266,937 Refunding, Connie Lee Insured, 5.875%, 7/01/15 ............................................... 2,200,000 2,290,464
Quarterly Statements of Investments | 7 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN ARIZONA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) ARIZONA (CONT.) Glendale IDAR, Midwestern University, Series A, 5.375%, 5/15/28 .............................................................................. $ 8,000,000 $ 8,465,920 Connie Lee Insured, 6.00%, 5/15/16 ........................................................... 455,000 477,013 Connie Lee Insured, 6.00%, 5/15/26 ........................................................... 340,000 355,232 MBIA Insured, 5.375%, 5/15/28 ................................................................ 1,050,000 1,122,733 Glendale Municipal Property Corp. Excise Tax Revenue, Series A, AMBAC Insured, 5.00%, 7/01/33 ....................................................................................... 1,000,000 1,050,100 Glendale Water and Sewer Revenue, sub. lien, AMBAC Insured, 5.00%, 7/01/23 ...................... 2,000,000 2,132,560 Goodyear Community Facilities General District No. 1 GO, MBIA Insured, 5.20%, 7/15/25 ........... 1,500,000 1,602,615 Goodyear Community Facilities Utilities District No. 1 GO, MBIA Insured, 5.20%, 7/15/25 ......... 1,000,000 1,068,410 Marana Municipal Property Corp. Municipal Facilities Revenue, Refunding, MBIA Insured, 5.25%, 7/01/22 ................................................................................ 1,100,000 1,172,204 Maricopa County GO, USD No. 41, Gilbert, 6.25%, 7/01/15 ............................................................................... 160,000 173,896 Pre-Refunded, 6.25%, 7/01/15 ................................................................. 1,840,000 2,013,365 Maricopa County Hospital Revenue, Sun Health Corp., 5.30%, 4/01/29 ............................................................................... 7,095,000 7,254,992 5.00%, 4/01/35 ............................................................................... 12,090,000 12,191,919 Refunding, 5.80%, 4/01/08 .................................................................... 3,870,000 4,093,725 Refunding, 5.90%, 4/01/09 .................................................................... 2,120,000 2,242,006 Refunding, 6.125%, 4/01/18 ................................................................... 15,650,000 16,546,432 Maricopa County IDA Health Facilities Revenue, Catholic Healthcare West, Refunding, ACA Insured, 5.00%, 7/01/16 ............................. 1,785,000 1,836,265 Catholic Healthcare West, Refunding, Series A, ACA Insured, 5.00%, 7/01/21 ................... 9,600,000 9,793,536 Catholic Healthcare West, Series A, 5.375%, 7/01/23 .......................................... 7,000,000 7,452,060 Catholic Healthcare West, Series A, 5.50%, 7/01/26 ........................................... 12,250,000 13,078,957 Catholic Healthcare West Project, Refunding, Series A, 5.00%, 7/01/16 ........................ 10,315,000 10,662,512 Maricopa County IDA Hospital Facility Revenue, Mayo Clinic Hospital, 5.25%, 11/15/37 ........................................................ 16,000,000 16,876,320 Mayo Clinic Hospital, AMBAC Insured, 5.25%, 11/15/37 ......................................... 3,000,000 3,151,380 Samaritan Health Services, Refunding, Series A, MBIA Insured, ETM, 7.00%, 12/01/16 ........... 1,890,000 2,401,377 Maricopa County IDA, MFHR, Madera Pointe Apartments Project, Refunding, FSA Insured, 5.90%, 6/01/26 ............... 2,105,000 2,171,750 MFHR, Metro Gardens, Mesa Ridge Project, Series A, MBIA Insured, 5.15%, 7/01/29 .............. 2,350,000 2,368,541 MFHR, Senior National Health Facilities II, Project A, FSA Insured, 5.50%, 1/01/18 ........... 2,000,000 2,225,040 MFHR, Tierra Antigua Project, Series A-1, AMBAC Insured, 5.30%, 12/01/21 ..................... 1,585,000 1,638,589 MFHR, Villas De Merced Apartment Project, Series A, GNMA Secured, 5.50%, 12/20/37 ............ 570,000 578,624 MFHR, Western Groves Apartments, Series A-1, AMBAC Insured, 5.30%, 12/01/22 .................. 1,785,000 1,844,351 SFMR, GNMA Secured, 6.25%, 12/01/30 .......................................................... 140,000 145,697 Maricopa County Osborn School District No. 8 GO, Series A, FGIC Insured, Pre-Refunded, 5.875%, 7/01/14 ................................................................................ 1,410,000 1,469,671 Maricopa County Pollution Control Corp. PCR, Public Service Co. Palo Verde Project, Series A, AMBAC Insured, 5.05%, 5/01/29 .................................................................. 11,500,000 12,086,730 Mesa IDAR, Discovery Health System, Series A, MBIA Insured, Pre-Refunded, 5.75%, 1/01/25 ............................................................................... 41,500,000 46,575,865 5.625%, 1/01/29 .............................................................................. 18,000,000 20,106,180 Mesa Street and Highway Revenue, FSA Insured, Pre-Refunded, 5.00%, 7/01/19 ...................... 2,500,000 2,689,525
8 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN ARIZONA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) ARIZONA (CONT.) Mesa Utility System Revenue, FGIC Insured, 5.00%, 7/01/21 ................................................................. $ 5,000,000 $ 5,267,250 MBIA Insured, 5.00%, 7/01/26 ................................................................. 10,000,000 10,652,700 MBIA Insured, 5.00%, 7/01/27 ................................................................. 10,500,000 11,160,870 MBIA Insured, 5.00%, 7/01/28 ................................................................. 11,000,000 11,692,340 Mohave County IDA Health Care Revenue, Refunding, GNMA Secured, 6.375%, 11/01/31 ................ 585,000 618,140 Northern Arizona University COP, AMBAC Insured, 5.00%, 9/01/30 .................................. 6,360,000 6,736,067 Northern Arizona University Revenues, FGIC Insured, 5.00%, 6/01/30 .............................. 1,000,000 1,046,820 Oro Valley Municipal Property Corp. Revenue, Municipal Water System, MBIA Insured, Pre-Refunded, 5.75%, 7/01/17 .................................................................. 500,000 520,500 Peoria Water and Sewer Revenue, FGIC Insured, 5.00%, 7/01/19 .................................... 1,300,000 1,375,491 Phoenix Airport Revenue, Refunding, Series B, MBIA Insured, 6.20%, 7/01/10 ............................................ 700,000 709,128 Refunding, Series C, MBIA Insured, 6.30%, 7/01/10 ............................................ 1,680,000 1,702,042 Refunding, Series C, MBIA Insured, 6.40%, 7/01/11 ............................................ 1,785,000 1,808,562 Refunding, Series C, MBIA Insured, 6.40%, 7/01/12 ............................................ 570,000 577,524 Series D, MBIA Insured, 6.30%, 7/01/10 ....................................................... 1,800,000 1,823,616 Series D, MBIA Insured, 6.40%, 7/01/11 ....................................................... 3,825,000 3,875,490 Series D, MBIA Insured, 6.40%, 7/01/12 ....................................................... 820,000 830,824 Phoenix Civic Improvement Corp. Airport Revenue, senior lien, Series B, FGIC Insured, 5.25%, 7/01/22 ...................................................................................... 3,000,000 3,192,930 7/01/23 ...................................................................................... 5,000,000 5,315,250 7/01/27 ...................................................................................... 15,250,000 16,115,895 Phoenix Civic Improvement Corp. Excise Tax Revenue, Adams Street Garage Project, senior lien, Series B, 5.35%, 7/01/24 ........................... 2,985,000 3,215,442 Municipal Courthouse Project, senior lien, Series A, 5.375%, 7/01/29 ......................... 18,310,000 19,711,814 Phoenix Civic Improvement Corp. Wastewater System Revenue, junior lien, FGIC Insured, Pre-Refunded, 6.00%, 7/01/19 ................................................... 3,000,000 3,431,430 FGIC Insured, Pre-Refunded, 6.00%, 7/01/20 ................................................... 3,670,000 4,197,783 FGIC Insured, Pre-Refunded, 6.00%, 7/01/24 ................................................... 24,715,000 28,269,264 MBIA Insured, 5.00%, 7/01/28 ................................................................. 2,000,000 2,125,880 MBIA Insured, 5.00%, 7/01/29 ................................................................. 3,405,000 3,611,377 Refunding, FGIC Insured, 5.00%, 7/01/20 ...................................................... 9,710,000 10,255,799 Refunding, FGIC Insured, 5.125%, 7/01/21 ..................................................... 10,000,000 10,673,600 Refunding, FGIC Insured, 5.00%, 7/01/24 ...................................................... 7,050,000 7,422,945 Phoenix Civic Improvement Corp. Water System Revenue, junior lien, FGIC Insured, 5.00%, 7/01/26 ................................................................. 3,250,000 3,421,892 Pre-Refunded, 6.00%, 7/01/19 ................................................................. 3,000,000 3,101,790 Phoenix Civic Plaza Building Corp. Excise Tax Revenue, senior lien, 6.00%, 7/01/14 .............. 4,300,000 4,354,567 Phoenix GO, 5.25%, 7/01/22 ............................................................................... 5,420,000 5,855,009 Various Purposes, Series B, 5.00%, 7/01/27 ................................................... 8,360,000 8,823,144 Phoenix HFC Mortgage Revenue, Project A, Refunding, MBIA Insured, 6.50%, 7/01/24 ........................................... 1,070,000 1,070,674 Section 8 Project, Refunding, Series A, MBIA Insured, 6.90%, 1/01/23 ......................... 1,750,000 1,795,552
Quarterly Statements of Investments | 9 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN ARIZONA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) ARIZONA (CONT.) Phoenix IDA Government Office Lease Revenue, Capitol Mall LLC II Project, AMBAC Insured, 5.00%, 9/15/21 ................................... $ 4,300,000 $ 4,553,012 Capitol Mall LLC II Project, AMBAC Insured, 5.00%, 9/15/28 ................................... 4,000,000 4,196,560 Capitol Mall Project, AMBAC Insured, 5.375%, 9/15/22 ......................................... 2,000,000 2,180,360 Capitol Mall Project, AMBAC Insured, 5.50%, 9/15/27 .......................................... 24,300,000 26,477,523 Phoenix IDA Hospital Revenue, Refunding, Series B, Connie Lee Insured, 5.75%, 12/01/16 .......... 3,500,000 3,771,740 Phoenix IDA, SFMR, Series 1B, GNMA Secured, 6.20%, 6/01/22 ...................................... 115,000 116,379 Phoenix Municipal Housing Revenue, Fillmore Gardens Project, Refunding, 6.30%, 6/01/09 ....................................................................................... 1,500,000 1,534,470 Phoenix Street and Highway Revenue, Refunding, 6.60%, 7/01/07 ................................... 610,000 612,056 Pima County IDA, MFR, Series A, FNMA Insured, Pre-Refunded, 6.00%, 12/01/21 ................................... 2,720,000 2,897,888 SFMR, Refunding, Series A, 7.625%, 2/01/12 ................................................... 630,000 630,832 SFMR, Series B-1, GNMA Secured, 6.10%, 5/01/31 ............................................... 95,000 99,255 Salt River Project Agricultural Improvement and Power District Electric System Revenue, Salt River Project, Refunding, Series A, 5.00%, 1/01/23 .......................................................... 6,000,000 6,411,600 Refunding, Series A, 5.00%, 1/01/31 .......................................................... 1,375,000 1,449,374 Series B, 5.00%, 1/01/25 ..................................................................... 7,125,000 7,572,236 Scottsdale GO, Refunding, 5.00%, 7/01/22 ........................................................ 3,000,000 3,232,770 Scottsdale IDA Hospital Revenue, Scottsdale Healthcare, 5.70%, 12/01/21 .............................................................................. 2,000,000 2,181,860 5.80%, 12/01/31 .............................................................................. 14,865,000 16,150,377 Scottsdale Municipal Property Corp. Excise Tax Revenue, 5.00%, 7/01/24 ............................................................................... 5,000,000 5,385,200 Series A, 5.00%, 7/01/34 ..................................................................... 2,000,000 2,122,760 Sierra Vista Municipal Property Corp. Facilities Revenue, AMBAC Insured, 6.15%, 1/01/15 ......... 360,000 364,684 Southern Arizona Capital Facilities Finance Corp. Student Housing Revenue, University of Arizona Project, MBIA Insured, Pre-Refunded, 5.10%, 9/01/33 ................................... 3,000,000 3,345,270 Tempe Arizona IDA Lease Revenue, State University Foundation, AMBAC Insured, 5.00%, 7/01/28 ...................................................................................... 4,275,000 4,519,103 7/01/34 ...................................................................................... 11,510,000 12,086,651 Tolleson IDA, MFR, Copper Cove Project, Series A, GNMA Secured, 5.40%, 11/20/22 .............................................................................. 1,090,000 1,138,778 5.45%, 11/20/32 .............................................................................. 1,285,000 1,342,581 Tucson Airport Authority Inc. Revenue, sub. lien, AMBAC Insured, 5.35%, 6/01/31 ................. 10,000,000 10,511,900 Tucson GO, Series A, Pre-Refunded, 5.25%, 7/01/20 ............................................... 1,050,000 1,137,497 Tucson IDA Lease Revenue, University of Arizona/Marshall Foundation, Series A, AMBAC Insured, 5.00%, 7/15/32 .................................................................. 1,000,000 1,045,600 Tucson Water Revenue, Series A, FGIC Insured, 5.00%, 7/01/23 ....................................................... 3,600,000 3,786,480 Series D, FGIC Insured, 5.25%, 7/01/23 ....................................................... 3,000,000 3,165,120 Series D, FGIC Insured, 5.25%, 7/01/24 ....................................................... 2,700,000 2,880,144
10 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN ARIZONA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) ARIZONA (CONT.) University of Arizona COP, Parking and Student Housing, AMBAC Insured, Pre-Refunded, 5.75%, 6/01/24 ..................... $ 1,115,000 $ 1,230,503 University of Arizona Projects, Series B, AMBAC Insured, 5.125%, 6/01/22 ..................... 2,250,000 2,417,310 University of Arizona Projects, Series B, AMBAC Insured, 5.00%, 6/01/26 ...................... 7,070,000 7,485,150 University of Arizona Projects, Series B, AMBAC Insured, 5.00%, 6/01/28 ...................... 7,000,000 7,396,410 University of Arizona Projects, Series B, AMBAC Insured, 5.00%, 6/01/31 ...................... 5,565,000 5,849,260 University of Arizona University Revenues, Arizona Board of Regents System, Series A, FGIC Insured, 5.80%, 6/01/24 .................................................................. 2,000,000 2,228,480 Yavapai County IDA Hospital Facility Revenue, Regional Medical Center, Series A, 6.00%, 8/01/33 ....................................................................................... 2,000,000 2,147,760 Yavapai County USD No. 28 Camp Verde GO, Refunding, FGIC Insured, 6.00%, 7/01/09 ................ 75,000 75,936 Yuma IDA Hospital Revenue, Regency Apartments, Refunding, Series A, GNMA Secured, 5.50%, 12/20/32 ....................... 920,000 922,760 Yuma Regional Medical Center, FSA Insured, Pre-Refunded, 5.50%, 8/01/21 ...................... 2,015,000 2,292,405 Yuma Municipal Property Corp. Revenue, Municipal Facilities, AMBAC Insured, 5.00%, 7/01/25 ....................................................................................... 3,100,000 3,296,726 ------------ 726,831,119 ------------ U.S. TERRITORIES 20.0% Children's Trust Fund Puerto Rico Tobacco Settlement Revenue, Asset Backed Bonds, Refunding, 5.50%, 5/15/39 ..................................................................... 5,000,000 5,042,900 Puerto Rico Commonwealth Aqueduct and Sewer Authority Revenue, Series A, FSA Insured, Pre-Refunded, 9.00%, 7/01/09 .................................................................. 35,000 35,173 Puerto Rico Commonwealth GO, Public Improvement, Series A, 5.375%, 7/01/28 ...................... 3,355,000 3,605,350 Puerto Rico Commonwealth Highway and Transportation Authority Highway Revenue, Series Y, 5.00%, 7/01/36 ............................................................................... 10,000,000 10,575,300 5.50%, 7/01/36 ............................................................................... 8,550,000 9,574,546 Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Series B, Pre-Refunded, 6.00%, 7/01/39 ....................................................... 19,600,000 22,468,460 Series D, 5.375%, 7/01/36 .................................................................... 5,000,000 5,391,250 Puerto Rico Commonwealth Infrastructure Financing Authority Special Revenue, Series A, 7.50%, 7/01/09 ................................................................................ 50,000 50,203 Puerto Rico Electric Power Authority Power Revenue, Series II, 5.25%, 7/01/31 ................... 15,000,000 16,095,600 Puerto Rico HFC Revenue, MFM, Portfolio A-I, 7.50%, 4/01/22 ........................................................... 565,000 566,785 Sixth Portfolio, Section 8, FHA Insured, Pre-Refunded, 7.75%, 12/01/26 ....................... 40,000 41,026 Puerto Rico Industrial Tourist Educational Medical and Environmental Control Facilities Financing Authority Hospital Revenue, Dr. Pila Hospital Project, Refunding, FHA Insured, 5.875%, 8/01/12 ........................... 5,225,000 5,331,538 Hospital Auxilio Mutuo Obligation, Series A, MBIA Insured, 6.25%, 7/01/24 .................... 2,790,000 2,854,365 Puerto Rico PBA Revenue, Guaranteed, Government Facilities, Series D, 5.375%, 7/01/33 .................................................................... 8,190,000 8,836,027 Series D, Pre-Refunded, 5.375%, 7/01/33 ...................................................... 21,810,000 24,498,737 Series I, 5.375%, 7/01/34 .................................................................... 40,000,000 43,547,200 Series I, 5.00%, 7/01/36 ..................................................................... 7,000,000 7,343,350
Quarterly Statements of Investments | 11 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN ARIZONA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) U.S. TERRITORIES (CONT.) Puerto Rico Public Finance Corp. Revenue, Commonwealth Appropriation, Series E, 5.50%, 8/01/29 ............................................................................... $ 3,660,000 $ 4,009,384 Pre-Refunded, 5.50%, 8/01/29 ................................................................. 11,340,000 12,813,179 Virgin Islands PFAR, senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/13 ......... 2,500,000 2,686,100 Virgin Islands Water and Power Authority Water System Revenue, Refunding, 5.50%, 7/01/17 ....................................................................................... 1,500,000 1,567,365 ------------ 186,933,838 ------------ TOTAL LONG TERM INVESTMENTS (COST $845,892,293) ................................................. 913,764,957 ------------ SHORT TERM INVESTMENTS 0.4% BONDS 0.4% ARIZONA 0.0%(a) (b)Arizona Health Facilities Authority Revenue, Arizona Voluntary Hospital Federation, Series A, FGIC Insured, Weekly VRDN and Put, 2.96%, 10/01/15 ............................................ 100,000 100,000 ------------ U.S. TERRITORIES 0.4% (b)Puerto Rico Commonwealth Government Development Bank Revenue, Refunding, MBIA Insured, Weekly VRDN and Put, 2.85%, 12/01/15 .......................................................... 2,884,000 2,884,000 (b)Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Series A, AMBAC Insured, Weekly VRDN and Put, 2.90%, 7/01/28 .................................. 1,000,000 1,000,000 ------------ 3,884,000 ------------ TOTAL SHORT TERM INVESTMENTS (COST $3,984,000) .................................................. 3,984,000 ------------ TOTAL INVESTMENTS (COST $849,876,293) 98.2% ..................................................... 917,748,957 OTHER ASSETS, LESS LIABILITIES 1.8% ............................................................. 16,984,517 ------------ NET ASSETS 100.0% ............................................................................... $934,733,474 ============
See Selected Portfolio Abbreviations on page 180. (a) Rounds to less than 0.05% of net assets. (b) Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. 12 | See Notes to Statements of Investments. | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN COLORADO TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 97.5% BONDS 96.1% COLORADO 92.4% Arapahoe County MFR, Housing Development Reserve, South Creek Project, Series A, FSA Insured, 6.45%, 6/01/32 ................................................................... $ 3,105,000 $ 3,328,715 Arapahoe County Water and Wastewater GO, Refunding, Series A, MBIA Insured, 5.125%, 12/01/32 ...................................................................................... 15,000,000 15,923,850 Arvada IDR, Wanco Inc. Project, 5.25%, 12/01/07 .............................................................................. 65,000 66,771 5.80%, 12/01/17 .............................................................................. 480,000 504,624 Aurora COP, AMBAC Insured, 5.50%, 12/01/30 ...................................................... 4,935,000 5,390,945 Bayfield School District No. 10 GO, MBIA Insured, Pre-Refunded, 6.65%, 6/01/15 .................. 1,000,000 1,000,000 Boulder County Development Revenue, University Corp. for Atmospheric Research, MBIA Insured, 5.00%, 9/01/33 .................................................................. 1,500,000 1,571,325 Boulder County Hospital Revenue, Longmont United Hospital Project, 5.50%, 12/01/12 .............................................................................. 1,000,000 1,032,240 5.60%, 12/01/17 .............................................................................. 3,385,000 3,483,774 Bowles Metropolitan District GO, Refunding, FSA Insured, 5.00%, 12/01/33 ........................ 2,500,000 2,627,050 Broadlands Metropolitan District No. 2 GO, Refunding, MBIA Insured, 5.25%, 12/01/34 ............. 8,655,000 9,318,406 Broomfield COP, AMBAC Insured, 6.00%, 12/01/29 ............................................................... 2,000,000 2,239,800 Master Facilities Lease Purchase, AMBAC Insured, 5.625%, 12/01/22 ............................ 1,535,000 1,689,007 Broomfield Sales and Use Tax Revenue, Refunding and Improvement, Series A, AMBAC Insured, 5.00%, 12/01/27 ............................................................................... 10,000,000 10,522,900 Broomfield Sewer Activity Enterprise Sewer and Wastewater Revenue, AMBAC Insured, 5.00%, 12/01/31 ...................................................................................... 7,500,000 7,857,750 Centennial Downs Metropolitan District GO, Refunding, AMBAC Insured, 5.00%, 12/01/28 ............ 1,560,000 1,653,132 Colorado Department of Transportation COP, MBIA Insured, 5.00%, 6/15/34 ......................... 6,915,000 7,284,676 Colorado Educational and Cultural Facilities Authority Revenue, Improvement, University of Denver Project, Refunding, AMBAC Insured, 5.375%, 3/01/23 ..................................................................................... 4,000,000 4,300,760 Student Housing, University of Colorado Foundation Project, AMBAC Insured, 5.00%, 7/01/27 ..................................................................................... 6,545,000 6,870,679 Student Housing, University of Colorado Foundation Project, AMBAC Insured, 5.00%, 7/01/32 ..................................................................................... 10,005,000 10,452,924 Colorado Health Facilities Authority Revenue, Birchwood Manor Project, Series A, GNMA Secured, 7.625%, 4/01/26 ............................. 1,615,000 1,622,590 Catholic Health Initiatives, Series A, 5.00%, 12/01/28 ....................................... 1,800,000 1,844,766 Community Provider Pooled Loan Program, Series A, FSA Insured, 7.25%, 7/15/17 ................ 94,000 94,546 Covenant Retirement Communities, 6.75%, 12/01/15 ............................................. 1,750,000 1,800,662 Covenant Retirement Communities, 6.75%, 12/01/25 ............................................. 4,950,000 5,087,363 Evangelical Lutheran, Series A, 5.25%, 6/01/34 ............................................... 3,500,000 3,660,790 Hospital Improvement, North Colorado Medical Center Inc. Project, FSA Insured, 5.75%, 5/15/24 ..................................................................................... 5,000,000 5,468,750 Kaiser Permanente, Series A, ETM, 5.35%, 11/01/16 ............................................ 8,000,000 8,319,680 Oakbrook Manor, Series A, GNMA Secured, 7.25%, 4/01/11 ....................................... 195,000 195,881 Oakbrook Manor, Series A, GNMA Secured, 7.625%, 4/01/26 ...................................... 885,000 889,160 Parkview Medical Center Inc. Project, 5.25%, 9/01/18 ......................................... 1,660,000 1,703,127 Parkview Medical Center Inc. Project, 5.30%, 9/01/25 ......................................... 1,615,000 1,645,669 Portercare Adventist Health, 6.625%, 11/15/26 ................................................ 2,500,000 2,810,250 Portercare Adventist Health, 6.50%, 11/15/31 ................................................. 5,500,000 6,144,490
Quarterly Statements of Investments | 13 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN COLORADO TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) COLORADO (CONT.) Colorado HFAR, MF, Project II, Series A-2, 5.30%, 10/01/23 .................................................. $ 1,855,000 $ 1,942,667 MF, Project II, Series A-2, 5.375%, 10/01/32 ................................................. 4,075,000 4,214,773 MFH, Castle High, Series A, AMBAC Insured, 5.90%, 12/01/20 ................................... 2,630,000 2,786,485 MFH, Insured Mortgage, Series A-2, FHA Insured, 6.00%, 10/01/28 .............................. 1,000,000 1,039,970 MFH, Insured Mortgage, Series C-3, 6.05%, 10/01/32 ........................................... 1,535,000 1,609,662 Colorado Mountain College Residence Hall Authority Revenue, MBIA Insured, Pre-Refunded, 5.75%, 6/01/23 ................................................................................ 2,000,000 2,077,320 Colorado Springs Hospital Revenue, 6.375%, 12/15/30 ............................................................................. 3,785,000 4,217,701 Pre-Refunded, 6.375%, 12/15/30 ............................................................... 3,715,000 4,346,104 Colorado Springs Utilities Revenue, Refunding and Improvement, Series A, 5.375%, 11/15/26 ........................................ 10,000,000 10,501,200 sub. lien, System Improvement, Series B, 5.00%, 11/15/33 ..................................... 4,000,000 4,216,840 Colorado State Board of Community Colleges and Occupational Education Revenue, Red Rocks Community College Project, AMBAC Insured, Pre-Refunded, 6.00%, 11/01/19 ....................... 90,000 91,258 Colorado Water Resources and Power Development Authority Clean Water Revenue, Series A, 6.15%, 9/01/11 ............................................................................... 125,000 125,641 6.30%, 9/01/14 ............................................................................... 25,000 25,131 Colorado Water Resources and Power Development Authority Small Water Resource Revenue, Series A, FGIC Insured, 5.80%, 11/01/20 ....................................................... 2,000,000 2,247,960 Colorado Water Resources and Power Development Authority Water Resources Revenue, East Cherry Creek Valley Water Sanitary District, MBIA Insured, 5.00%, 11/15/30 .............. 2,590,000 2,756,977 Parker Water and Sanitary District, MBIA Insured, 5.00%, 9/01/30 ............................. 5,000,000 5,307,450 Denver City and County Airport Revenue, Series A, AMBAC Insured, 5.625%, 11/15/23 .................................................... 4,500,000 4,818,420 Series B, 5.50%, 11/15/33 .................................................................... 5,000,000 5,087,700 Series D, 7.75%, 11/15/13 .................................................................... 1,000,000 1,196,340 Denver City and County COP, Series B, AMBAC Insured, Pre-Refunded, 5.50%, 12/01/25 .............. 13,500,000 15,224,760 Denver Health and Hospital Authority Healthcare Revenue, 6.25%, 12/01/33 .............................................................................. 3,250,000 3,525,958 Series A, 6.00%, 12/01/23 .................................................................... 1,000,000 1,058,280 Series A, 6.00%, 12/01/31 .................................................................... 5,400,000 5,671,890 Dolores County School District GO, FSA Insured, Pre-Refunded, 5.375%, 12/01/25 .................. 1,400,000 1,558,270 E-470 Public Highway Authority Revenue, Refunding, Senior Series A, MBIA Insured, 5.00%, 9/01/26 ..................................... 5,000,000 5,203,200 Senior Series A, MBIA Insured, 5.75%, 9/01/29 ................................................ 4,575,000 5,168,606 Senior Series A, MBIA Insured, 5.75%, 9/01/35 ................................................ 10,825,000 12,212,765 El Paso County Mortgage Revenue, Stetson Meadows, Series A, GNMA Secured, 5.25%, 12/20/32 ...................................................................................... 1,890,000 1,962,652 El Paso County School District No. 2 GO, FGIC Insured, 5.25%, 12/01/26 .......................... 4,000,000 4,285,840 El Paso County School District No. 38 GO, Pre-Refunded, 6.00%, 12/01/24 ......................... 1,500,000 1,716,585 Fort Collins PCR, Anheuser-Busch Co. Project, Refunding, 6.00%, 9/01/31 ......................... 5,325,000 5,497,424 Garfield County Building Corp. COP, AMBAC Insured, 5.75%, 12/01/19 ..................................................................................... 1,500,000 1,679,970 12/01/24 ..................................................................................... 1,000,000 1,111,080 Garfield Pitkin and Eagle Counties School District No. RE001 Roaring Fork GO, Series A, FSA Insured, 5.00%, 12/15/27 .................................................................. 5,435,000 5,782,405
14 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN COLORADO TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) COLORADO (CONT.) Greeley MFR, Housing Mortgage, Creek Stone Project, FHA Insured, 5.95%, 7/01/28 ................. $ 1,000,000 $ 1,040,970 La Junta Hospital Revenue, Ark Valley Regional Medical Center Project, 5.75%, 4/01/14 ............................................................................... 2,090,000 2,192,389 6.00%, 4/01/19 ............................................................................... 1,000,000 1,054,430 6.10%, 4/01/24 ............................................................................... 1,000,000 1,050,010 Lakewood MFHR, Mortgage, FHA Insured, 6.65%, 10/01/25 .............................................................................. 1,235,000 1,266,394 6.70%, 10/01/36 .............................................................................. 3,025,000 3,101,260 Las Animas County School District No. 1 COP, Refunding, 6.15%, 12/01/08 .............................................................................. 1,000,000 1,025,950 6.20%, 12/01/10 .............................................................................. 935,000 960,142 Northwest Parkway Public Highway Authority Revenue, Series A, AMBAC Insured, 5.125%, 6/15/26 ............................................................... 7,550,000 8,103,264 AMBAC Insured, 5.125%, 6/15/31 ............................................................... 4,465,000 4,759,735 FSA Insured, 5.25%, 6/15/41 .................................................................. 3,460,000 3,678,810 Pitkin County Open Space Acquisition GO, Refunding, AMBAC Insured, 5.375%, 12/01/30 ............. 2,940,000 3,176,758 Pueblo Board Waterworks Water Revenue, Series A, FSA Insured, Pre-Refunded, 6.00%, 11/01/21 ...................................................................................... 4,300,000 4,912,062 Pueblo County COP, Public Parking, 6.90%, 7/01/15 ............................................... 415,000 415,793 Pueblo County GO, MBIA Insured, 6.00%, 6/01/16 .................................................. 4,395,000 4,528,037 Pueblo County School District No. 070 Pueblo Rural GO, FGIC Insured, Pre-Refunded, 6.00%, 12/01/19 ...................................................................................... 3,995,000 4,484,707 Pueblo Urban Renewal Authority Tax Increment Revenue, AMBAC Insured, Pre-Refunded, 6.10%, 12/01/15 ............................................................................... 1,000,000 1,000,000 Regional Transportation District Sales Tax Revenue, Series A, FGIC Insured, Pre-Refunded, 5.125%, 11/01/20 .............................................................................. 1,735,000 1,921,599 Summit County Sports Facilities Revenue, Keystone Resorts Project, Ralston Purina Co., Refunding, 7.875%, 9/01/08 .................................................................... 2,750,000 3,170,530 Thornton Development Authority Tax Increment Revenue, North Washington Street Urban Renewal, MBIA Insured, 5.00%, 12/01/29 ........................................................ 6,100,000 6,478,871 Thornton Water Enterprise Revenue, MBIA Insured, 5.00%, 12/01/29 ................................ 7,010,000 7,445,391 University of Colorado COP, Series A, AMBAC Insured, 5.00%, 6/01/33 ............................. 6,070,000 6,384,244 University of Colorado Enterprise System Revenue, Refunding and Improvement, FGIC Insured, 5.00%, 6/01/33 ................................................................................ 11,500,000 12,215,645 University of Colorado Hospital Authority Revenue, Series A, 5.60%, 11/15/25 .................... 1,900,000 1,996,311 University of Northern Colorado Revenue, Auxiliary Facilities Systems, Refunding and Improvement, AMBAC Insured, 5.00%, 6/01/31 .................................................... 3,000,000 3,117,960 Ute Water Conservancy District Water Revenue, MBIA Insured, 5.75%, 6/15/20 ...................... 5,000,000 5,618,550 Westminster Building Authority COP, MBIA Insured, 5.25%, 12/01/22 ............................... 1,555,000 1,674,408 ------------ 365,450,556 ------------ U.S. TERRITORIES 3.7% Puerto Rico Commonwealth Aqueduct and Sewer Authority Revenue, Series A, FSA Insured, Pre-Refunded, 9.00%, 7/01/09 .................................................................. 25,000 25,123 Puerto Rico Industrial Tourist Educational Medical and Environmental Control Facilities Financing Authority Industrial Revenue, Guaynabo Municipal Government, 5.625%, 7/01/22 ...................................................................................... 1,335,000 1,380,176
Quarterly Statements of Investments | 15 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN COLORADO TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) U.S. TERRITORIES (CONT.) Puerto Rico PBA Revenue, Guaranteed, Government Facilities, Series D, 5.375%, 7/01/33 .................................................................... $ 2,120,000 $ 2,287,226 Series I, 5.375%, 7/01/34 .................................................................... 5,000,000 5,443,400 Virgin Islands PFAR, senior lien, Fund Loan Notes, Refunding, Series A, 5.40%, 10/01/12 .............................................................................. 2,500,000 2,679,100 5.50%, 10/01/22 .............................................................................. 2,500,000 2,651,175 ------------ 14,466,200 ------------ TOTAL BONDS (COST $351,482,526) ................................................................. 379,916,756 ------------ ZERO COUPON BONDS 1.4% COLORADO 1.4% E-470 Public Highway Authority Revenue, Capital Appreciation, Series A, MBIA Insured, 9/01/33 .............................................................. 3,000,000 656,970 Series B, MBIA Insured, 9/01/32 .............................................................. 7,800,000 1,815,294 Series B, MBIA Insured, 9/01/34 .............................................................. 14,075,000 2,908,880 ------------ TOTAL ZERO COUPON BONDS (COST $5,025,776) ....................................................... 5,381,144 ------------ TOTAL LONG TERM INVESTMENTS (COST $356,508,302) ................................................. 385,297,900 ------------ SHORT TERM INVESTMENTS 0.8% BONDS 0.8% COLORADO 0.7% (a)Colorado Educational and Cultural Facilities Authority Revenue, National Jewish Federal Bond Program, Daily VRDN and Put, 2.98%, 2/01/35 ........................................................... 500,000 500,000 Series A-7, Weekly VRDN and Put, 2.98%, 7/01/29 .............................................. 2,290,000 2,290,000 (a)Galleria Metropolitan District GO, Weekly VRDN and Put, 2.97%, 12/01/29 ......................... 100,000 100,000 ------------ 2,890,000 ------------ U.S. TERRITORIES 0.1% (a)Puerto Rico Commonwealth Government Development Bank Revenue, Refunding, MBIA Insured, Weekly VRDN and Put, 2.85%, 12/01/15 .......................................................... 300,000 300,000 ------------ TOTAL SHORT TERM INVESTMENTS (COST $3,190,000) .................................................. 3,190,000 ------------ TOTAL INVESTMENTS (COST $359,698,302) 98.3% ..................................................... 388,487,900 OTHER ASSETS, LESS LIABILITIES 1.7% ............................................................. 6,830,609 ------------ NET ASSETS 100.0% ............................................................................... $395,318,509 ============
See Selected Portfolio Abbreviations on page 180. (a) Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. 16 | See Notes to Statements of Investments. | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CONNECTICUT TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 97.2% BONDS 97.2% CONNECTICUT 71.3% Bridgeport GO, Series A, FGIC Insured, Pre-Refunded, 5.875%, 7/15/19 ............................ $ 1,000,000 $ 1,138,870 Connecticut State Airport Revenue, Bradley International Airport, Series A, FGIC Insured, 5.125%, 10/01/26 .............................................................................. 3,000,000 3,130,500 Connecticut State Development Authority First Mortgage Gross Revenue, Health Care Project, 5.75%, 12/01/23 .............................................................................. 750,000 792,263 Baptist Homes Inc. Project, Refunding, Radian Insured, 5.625%, 9/01/22 ....................... 2,000,000 2,185,720 Church Homes Inc., Refunding, 5.80%, 4/01/21 ................................................. 4,000,000 4,013,200 Elim Park Baptist Home, Refunding, Series A, 5.375%, 12/01/18 ................................ 1,100,000 1,125,740 Connecticut State Development Authority PCR, Connecticut Light and Water, Refunding, Series A, 5.85%, 9/01/28 ...................................................................... 5,500,000 5,878,070 Connecticut State Development Authority Revenue, Life Care Facilities, Seabury Project, Refunding, Radian Insured, 5.00%, 9/01/21 ..................................................... 2,000,000 2,076,400 Connecticut State Development Authority Solid Waste Disposal Facilities Revenue, Pfizer Inc. .... Project, 7.00%, 7/01/25 ....................................................................... 2,000,000 2,046,640 Connecticut State Development Authority Water Facility Revenue, Bridgeport Hydraulic Co. ........ Project, 6.15%, 4/01/35 ............................................................................... 1,000,000 1,048,810 6.00%, 9/01/36 ............................................................................... 10,000,000 10,376,600 Connecticut State GO, Series B, 5.00%, 6/15/22 ..................................................................... 2,000,000 2,127,840 Series B, Pre-Refunded, 5.00%, 6/15/20 ....................................................... 10,000,000 10,997,700 Series D, MBIA Insured, 5.00%, 12/01/24 ...................................................... 1,000,000 1,081,640 Connecticut State Health and Educational Facilities Authority Revenue, Abbot Terrace Health Center Project, Series A, Pre-Refunded, 6.00%, 11/01/14 ................. 2,000,000 2,125,780 Brunswick School, Series A, MBIA Insured, 5.00%, 7/01/29 ..................................... 5,000,000 5,204,250 Catholic Health East, Series F, MBIA Insured, 5.75%, 11/15/29 ................................ 3,250,000 3,578,120 Child Care Facilities Program, Series C, AMBAC Insured, 5.625%, 7/01/29 ...................... 1,250,000 1,368,275 Child Care Facilities Program, Series E, AMBAC Insured, 5.00%, 7/01/31 ....................... 1,000,000 1,050,390 Connecticut College Project, Series D-1, MBIA Insured, 5.75%, 7/01/30 ........................ 1,000,000 1,120,620 Danbury Hospital Issue, Refunding, Series G, AMBAC Insured, 5.75%, 7/01/29 ................... 3,500,000 3,849,545 Eastern Connecticut Health Network, Refunding, Series A, Radian Insured, 6.00%, 7/01/25 ..................................................................................... 9,195,000 10,111,833 Fairfield University, Series I, MBIA Insured, 5.25%, 7/01/25 ................................. 2,500,000 2,664,925 Fairfield University, Series I, MBIA Insured, 5.50%, 7/01/29 ................................. 8,000,000 8,713,760 Fairfield University, Series J, MBIA Insured, 5.00%, 7/01/29 ................................. 3,000,000 3,143,850 Greenwich Academy, Series B, FSA Insured, 5.00%, 3/01/32 ..................................... 4,210,000 4,418,395 Greenwich Hospital, Series A, MBIA Insured, 5.80%, 7/01/26 ................................... 2,000,000 2,097,640 Griffin Hospital, Series B, Radian Insured, 5.00%, 7/01/23 ................................... 1,500,000 1,593,915 Hebrew Home and Hospital, Series B, FHA Insured, 5.15%, 8/01/28 .............................. 3,800,000 3,984,984 Horace Bushnell Memorial Hall, Series A, MBIA Insured, 5.625%, 7/01/29 ....................... 1,000,000 1,101,990 Hospital for Special Care, Refunding, Series B, 5.375%, 7/01/17 .............................. 3,000,000 2,910,480 Hospital for Special Care, Refunding, Series B, 5.50%, 7/01/27 ............................... 3,200,000 3,069,632 Lutheran General Health Care System, ETM, 7.375%, 7/01/19 .................................... 500,000 624,385 New Horizons Village Project, 7.30%, 11/01/16 ................................................ 2,905,000 2,975,388 Norwich Free Academy, Series A, AMBAC Insured, 5.00%, 7/01/34 ................................ 1,675,000 1,780,425
Quarterly Statements of Investments | 17 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CONNECTICUT TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) CONNECTICUT (CONT.) Connecticut State Health and Educational Facilities Authority Revenue, (cont.) Sacred Heart University, Refunding, Series E, Radian Insured, 5.00%, 7/01/28 ................. $ 4,000,000 $ 4,105,560 Sacred Heart University, Series C, 6.50%, 7/01/16 ............................................ 235,000 245,248 Sacred Heart University, Series C, 6.625%, 7/01/26 ........................................... 785,000 816,274 Sacred Heart University, Series C, Pre-Refunded, 6.50%, 7/01/16 .............................. 765,000 808,574 Sacred Heart University, Series C, Pre-Refunded, 6.625%, 7/01/26 ............................. 6,215,000 6,577,148 Sacred Heart University, Series D, Pre-Refunded, 6.20%, 7/01/27 .............................. 1,000,000 1,082,760 Series B, MBIA Insured, 5.00%, 7/01/33 ....................................................... 2,000,000 2,114,200 St. Mary's Hospital, Refunding, Series E, 5.50%, 7/01/20 ..................................... 4,615,000 4,339,946 Trinity College, Series G, AMBAC Insured, 5.00%, 7/01/31 ..................................... 5,425,000 5,715,563 Trinity College, Series H, MBIA Insured, 5.00%, 7/01/26 ...................................... 1,855,000 1,992,066 University of Connecticut Foundation, Series A, 5.375%, 7/01/29 .............................. 1,250,000 1,322,713 Village Families and Children, Series A, AMBAC Insured, 5.00%, 7/01/32 ....................... 1,000,000 1,054,290 Westover School, Series A, Radian Insured, 5.70%, 7/01/30 .................................... 2,000,000 2,183,660 Windham Community Memorial Hospital, Series C, 6.00%, 7/01/20 ................................ 5,000,000 4,725,000 Yale New Haven Hospital, Refunding, Series H, MBIA Insured, 5.70%, 7/01/25 ................... 4,000,000 4,197,640 Connecticut State HFAR, Housing Mortgage Finance Program, Refunding, Sub Series E-2, 5.20%, 11/15/21 ................. 1,840,000 1,892,127 Housing Mortgage Finance Program, Series B, 6.10%, 11/15/31 .................................. 2,715,000 2,841,003 Housing Mortgage Finance Program, Series C-2, 6.25%, 11/15/18 ................................ 1,500,000 1,554,135 Housing Mortgage Finance Program, Sub Series E-4, 5.05%, 5/15/28 ............................. 4,650,000 4,756,485 Special Obligation, Special Needs Housing, Series 1, AMBAC Insured, 5.00%, 6/15/22 ........... 1,000,000 1,080,400 Special Obligation, Special Needs Housing, Series 1, AMBAC Insured, 5.00%, 6/15/32 ........... 1,000,000 1,058,070 Connecticut State Higher Education Supplemental Loan Authority Revenue, Family Education Loan Program, Series A, AMBAC Insured, 6.00%, 11/15/18 ............................................................... 920,000 944,665 MBIA Insured, 5.50%, 11/15/17 ................................................................ 1,160,000 1,188,432 Connecticut State Special Tax Obligation Revenue, Transportation Infrastructure, Series A, FSA Insured, Pre-Refunded, 5.375%, 10/01/18 ........................................ 1,000,000 1,125,480 Series B, AMBAC Insured, 5.00%, 12/01/20 ..................................................... 5,000,000 5,384,750 Series B, AMBAC Insured, 5.00%, 12/01/22 ..................................................... 1,000,000 1,068,880 Griswold GO, AMBAC Insured, 7.50%, 4/01/06 ...................................................... 200,000 207,644 New Haven GO, Refunding, Series C, MBIA Insured, 5.00%, 11/01/22 ................................ 3,000,000 3,233,070 South Regional Water Authority Water System Revenue, Series A, MBIA Insured, 5.00%, 8/01/33 ....................................................................................... 6,000,000 6,358,200 University of Connecticut Revenue, Student Fee, Refunding, Series A, FGIC Insured, 5.00%, 11/15/26 ........................................... 10,000,000 10,696,000 Series A, 5.00%, 5/15/23 ..................................................................... 10,000,000 10,688,900 Series A, FGIC Insured, Pre-Refunded, 6.00%, 11/15/25 ........................................ 1,500,000 1,727,610 ------------ 212,595,068 ------------
18 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CONNECTICUT TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) U.S. TERRITORIES 25.9% Children's Trust Fund Puerto Rico Tobacco Settlement Revenue, Asset Backed Bonds, Refunding, 5.50%, 5/15/39 ..................................................................... $ 4,000,000 $ 4,034,320 Puerto Rico Commonwealth GO, Public Improvement, FSA Insured, 5.125%, 7/01/30 ................................................................. 835,000 893,116 FSA Insured, Pre-Refunded, 5.125%, 7/01/30 ................................................... 1,165,000 1,293,383 MBIA Insured, Pre-Refunded, 5.75%, 7/01/26 ................................................... 1,775,000 1,985,533 Series A, 5.00%, 7/01/29 ..................................................................... 1,000,000 1,048,290 Series A, 5.125%, 7/01/31 .................................................................... 3,195,000 3,338,040 Series A, 5.00%, 7/01/33 ..................................................................... 1,000,000 1,043,840 Series A, 5.00%, 7/01/34 ..................................................................... 750,000 783,353 Series A, FGIC Insured, Pre-Refunded, 5.00%, 7/01/32 ......................................... 4,000,000 4,439,320 Series A, Pre-Refunded, 5.125%, 7/01/31 ...................................................... 1,000,000 1,110,200 Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Series A, 5.00%, 7/01/38 ..................................................................... 2,500,000 2,568,875 Series G, 5.00%, 7/01/33 ..................................................................... 1,000,000 1,044,530 Puerto Rico Commonwealth Infrastructure Financing Authority Special Tax Revenue, Series A, AMBAC Insured, 5.00%, 7/01/28 ................................................................. 5,000,000 5,166,300 Puerto Rico Electric Power Authority Power Revenue, Series HH, FSA Insured, 5.25%, 7/01/29 ....................................................... 13,000,000 14,101,750 Series II, 5.25%, 7/01/31 .................................................................... 1,000,000 1,073,040 Series RR, XLCA Insured, 5.00%, 7/01/30 ...................................................... 1,000,000 1,072,800 Puerto Rico Industrial Tourist Educational Medical and Environmental Control Facilities Financing Authority Industrial Revenue, Guaynabo Warehouse, Series A, 5.15%, 7/01/19 .......... 3,595,000 3,698,284 Puerto Rico Industrial Tourist Educational Medical and Environmental Control Facilities Revenue, University Plaza Project, Series A, MBIA Insured, 5.00%, 7/01/33 .............................. 1,000,000 1,040,850 Puerto Rico PBA Revenue, Guaranteed, Government Facilities, Series D, 5.375%, 7/01/33 .................................................................... 1,995,000 2,152,366 Series D, Pre-Refunded, 5.375%, 7/01/33 ...................................................... 6,005,000 6,745,296 Series I, 5.00%, 7/01/36 ..................................................................... 1,000,000 1,049,050 Puerto Rico Public Finance Corp. Revenue, Commonwealth Appropriation, Series E, Pre-Refunded, 5.70%, 8/01/25 .................................................................. 10,000,000 11,156,700 Virgin Islands PFAR, senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/13 ..................................................................................... 2,500,000 2,686,100 10/01/22 ..................................................................................... 2,500,000 2,651,175 Virgin Islands Water and Power Authority Electric System Revenue, Refunding, 5.30%, 7/01/21 ....................................................................................... 1,000,000 1,017,750 ------------ 77,194,261 ------------ TOTAL LONG TERM INVESTMENTS (COST $271,280,654) ................................................. 289,789,329 ------------
Quarterly Statements of Investments | 19 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CONNECTICUT TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM INVESTMENTS 1.2% BONDS 1.2% CONNECTICUT 0.1% (a)Connecticut State Health and Educational Facilities Authority Revenue, Middlesex Hospital, Series J, Weekly VRDN and Put, 2.95%, 7/01/26 ............................. $ 100,000 $ 100,000 Weekly VRDN and Put, 2.95%, 7/01/27 ........................................................... 200,000 200,000 ------------ 300,000 ------------ U.S. TERRITORIES 1.1% (a)Puerto Rico Commonwealth Government Development Bank Revenue, Refunding, MBIA Insured, Weekly VRDN and Put, 2.85%, 12/01/15 .......................................................... 3,200,000 3,200,000 ------------ TOTAL SHORT TERM INVESTMENTS (COST $3,500,000) .................................................. 3,500,000 ------------ TOTAL INVESTMENTS (COST $274,780,654) 98.4% ..................................................... 293,289,329 OTHER ASSETS, LESS LIABILITIES 1.6% ............................................................. 4,888,115 ------------ NET ASSETS 100.0% ............................................................................... $298,177,444 ============
See Selected Portfolio Abbreviations on page 180. (a) Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. 20 | See Notes to Statements of Investments. | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN DOUBLE TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 97.3% BONDS 97.3% U.S. TERRITORIES 97.3% Children's Trust Fund Puerto Rico Tobacco Settlement Revenue, Asset Backed Bonds, Refunding, 5.50%, 5/15/39 ..................................................................... $ 5,000,000 $ 5,042,900 Guam International Airport Authority Revenue, Series A, MBIA Insured, 5.25%, 10/01/20 ...................................................... 1,725,000 1,915,043 Series A, MBIA Insured, 5.25%, 10/01/22 ...................................................... 700,000 772,366 Series B, MBIA Insured, 5.25%, 10/01/22 ...................................................... 1,000,000 1,103,380 Series B, MBIA Insured, 5.25%, 10/01/23 ...................................................... 1,000,000 1,101,880 Series C, MBIA Insured, 5.25%, 10/01/21 ...................................................... 5,000,000 5,282,200 Series C, MBIA Insured, 5.00%, 10/01/23 ...................................................... 5,000,000 5,238,950 Guam Power Authority Revenue, Refunding, Series A, MBIA Insured, 5.125%, 10/01/29 ............................................................................. 1,975,000 2,071,795 5.25%, 10/01/34 .............................................................................. 7,000,000 7,414,610 Puerto Rico Commonwealth GO, Public Improvement, MBIA Insured, Pre-Refunded, 5.75%, 7/01/26 ................................................... 3,000,000 3,355,830 Series A, 5.375%, 7/01/28 .................................................................... 1,300,000 1,397,006 Series A, 5.00%, 7/01/29 ..................................................................... 4,500,000 4,717,305 Series A, 5.00%, 7/01/34 ..................................................................... 7,000,000 7,311,290 Series A, FGIC Insured, 5.125%, 7/01/31 ...................................................... 5,000,000 5,176,200 Puerto Rico Commonwealth Highway and Transportation Authority Highway Revenue, Series Y, 5.50%, 7/01/36 ................................................................................. 11,850,000 13,269,985 Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Series B, Pre-Refunded, 6.00%, 7/01/39 ....................................................... 10,000,000 11,463,500 Series D, 5.375%, 7/01/36 .................................................................... 11,990,000 12,928,217 Puerto Rico Commonwealth Infrastructure Financing Authority Special Obligation, Series A, ETM, 5.50%, 10/01/32 .......................................................................... 10,000,000 10,944,900 Puerto Rico Commonwealth Infrastructure Financing Authority Special Revenue, Series A, 7.50%, 7/01/09 ............................................................................... 135,000 135,548 AMBAC Insured, 5.00%, 7/01/21 ................................................................ 10,000,000 10,564,500 AMBAC Insured, 5.00%, 7/01/28 ................................................................ 2,000,000 2,066,520 Puerto Rico Electric Power Authority Power Revenue, Series HH, FSA Insured, 5.25%, 7/01/29 ....................................................... 1,605,000 1,741,024 Series II, 5.25%, 7/01/31 .................................................................... 15,500,000 16,632,120 Series II, FSA Insured, 5.125%, 7/01/26 ...................................................... 1,000,000 1,081,420 Series NN, 5.125%, 7/01/29 ................................................................... 5,125,000 5,446,747 Series NN, MBIA Insured, 5.00%, 7/01/32 ...................................................... 2,000,000 2,124,060 Puerto Rico HFAR, Capital Fund Program, 4.60%, 12/01/24 ......................................... 10,000,000 10,168,800 Puerto Rico HFC Revenue, MFM, Portfolio A-I, 7.50%, 10/01/15 .......................................................... 245,000 245,840 MFM, Portfolio A-I, 7.50%, 4/01/22 ........................................................... 695,000 697,196 Sixth Portfolio, Section 8, FHA Insured, Pre-Refunded, 7.75%, 12/01/26 ....................... 2,060,000 2,112,818 Puerto Rico HFC, HMR, MBS, Series A, GNMA Secured, 5.20%, 12/01/33 .............................. 11,410,000 11,708,600 Puerto Rico Housing Bank and Financing Authority SFMR, Affordable Housing Mortgage, First Portfolio, 6.25%, 4/01/29 ............................................................... 1,915,000 1,960,328 Puerto Rico Industrial Medical and Environmental Pollution Control Facilities Financing Authority Revenue, PepsiCo Inc. Project, 6.25%, 11/15/13 ...................................... 900,000 920,880
Quarterly Statements of Investments | 21 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN DOUBLE TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) U.S. TERRITORIES (CONT.) Puerto Rico Industrial Tourist Educational Medical and Environmental Control Facilities Financing Authority Hospital Revenue, Dr. Pila Hospital Project, Refunding, FHA Insured, 6.125%, 8/01/25 ........................... $ 2,500,000 $ 2,552,150 Dr. Pila Hospital Project, Refunding, FHA Insured, 6.25%, 8/01/32 ............................ 500,000 510,445 Hospital Auxilio Mutuo Obligation, Series A, MBIA Insured, 6.25%, 7/01/24 .................... 8,445,000 8,639,826 Mennonite General Hospital Project, 5.625%, 7/01/17 .......................................... 750,000 710,625 Mennonite General Hospital Project, 5.625%, 7/01/27 .......................................... 1,950,000 1,766,115 Puerto Rico Industrial Tourist Educational Medical and Environmental Control Facilities Financing Authority Industrial Revenue, Guaynabo Municipal Government, 5.625%, 7/01/15 ............................................... 6,550,000 6,803,485 Guaynabo Municipal Government, 5.625%, 7/01/22 ............................................... 3,160,000 3,266,934 Guaynabo Warehouse, Series A, 5.15%, 7/01/19 ................................................. 1,250,000 1,285,913 Guaynabo Warehouse, Series A, 5.20%, 7/01/24 ................................................. 4,120,000 4,232,105 Puerto Rico Industrial Tourist Educational Medical and Environmental Control Facilities Revenue, Ana G. Mendez University System Project, Refunding, 5.375%, 12/01/21 ......................... 2,000,000 2,124,600 Ana G. Mendez University System Project, Refunding, 5.375%, 2/01/29 .......................... 7,850,000 8,100,023 Cogeneration Facility, AES Puerto Rico Project, 6.625%, 6/01/26 .............................. 5,970,000 6,554,344 Intermediate American University of Puerto Rico Project, MBIA Insured, 5.00%, 10/01/15 .................................................................................... 1,320,000 1,477,463 Intermediate American University of Puerto Rico Project, MBIA Insured, 5.00%, 10/01/18 .................................................................................... 1,000,000 1,100,050 International American University of Puerto Rico Project, MBIA Insured, 4.25%, 10/01/24 .................................................................................... 1,000,000 1,019,260 International American University of Puerto Rico Project, MBIA Insured, 4.375%, 10/01/25 .................................................................................... 1,000,000 1,026,550 International American University of Puerto Rico Project, MBIA Insured, 4.50%, 10/01/29 .................................................................................... 3,750,000 3,838,800 University Plaza Project, Series A, MBIA Insured, 5.00%, 7/01/33 ............................. 6,000,000 6,245,100 Puerto Rico Municipal Finance Agency GO, Series A, FSA Insured, 5.50%, 8/01/23 .................. 7,400,000 8,116,616 Puerto Rico Municipal Finance Agency Revenue, Series A, FSA Insured, 5.00%, 8/01/27 ............. 5,500,000 5,846,280 Puerto Rico PBA Revenue, Guaranteed, Government Facilities, Series D, 5.375%, 7/01/33 .................................................................... 3,430,000 3,700,558 Series D, Pre-Refunded, 5.375%, 7/01/33 ...................................................... 9,070,000 10,188,150 Series I, 5.25%, 7/01/33 ..................................................................... 4,500,000 4,835,835 Series I, 5.375%, 7/01/34 .................................................................... 5,000,000 5,443,400 Series I, 5.00%, 7/01/36 ..................................................................... 4,000,000 4,196,200 Puerto Rico Port Authority Revenue, Series D, FGIC Insured, 6.00%, 7/01/21 ...................... 1,250,000 1,253,638 Puerto Rico Public Finance Corp. Revenue, Commonwealth Appropriation, Mandatory Put 2/01/12, Refunding, Series A, 5.75%, 8/01/27 ................................... 5,000,000 5,599,950 Series A, Pre-Refunded, 5.00%, 6/01/26 ....................................................... 2,865,000 3,058,388 Series E, 5.50%, 8/01/29 ..................................................................... 2,155,000 2,360,716 Series E, Pre-Refunded, 5.50%, 8/01/29 ....................................................... 6,845,000 7,734,234 Virgin Islands HFA, SFR, Refunding, Series A, GNMA Secured, 6.45%, 3/01/16 ............................................................................... 160,000 163,686 6.50%, 3/01/25 ............................................................................... 390,000 398,311
22 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN DOUBLE TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) U.S. TERRITORIES (CONT.) Virgin Islands PFAR, Gross Receipts Taxes Loan Note, Radian Insured, 5.00%, 10/01/26 .............................. $ 5,000,000 $ 5,297,850 Gross Receipts Taxes Loan Note, Radian Insured, 5.00%, 10/01/33 .............................. 9,220,000 9,682,199 senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/18 ........................... 3,000,000 3,193,050 senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/22 ........................... 6,750,000 7,158,173 senior lien, Fund Loan Notes, Refunding, Series A, 5.625%, 10/01/25 .......................... 3,950,000 4,187,593 senior lien, Matching Fund Loan Note, Series A, 5.25%, 10/01/21 .............................. 1,000,000 1,077,880 senior lien, Matching Fund Loan Note, Series A, 5.25%, 10/01/24 .............................. 2,000,000 2,150,980 Virgin Islands Port Authority Marine Revenue, Series A, FSA Insured, 5.25%, 9/01/18 ............................................................................... 3,930,000 4,209,344 5.00%, 9/01/23 ............................................................................... 10,000,000 10,479,600 Virgin Islands Water and Power Authority Electric System Revenue, Refunding, 5.30%, 7/01/18 ...................................................................................... 4,175,000 4,256,621 7/01/21 ...................................................................................... 1,000,000 1,017,750 Virgin Islands Water and Power Authority Water System Revenue, Refunding, 5.25%, 7/01/12 ............................................................................... 4,000,000 4,186,400 5.50%, 7/01/17 ............................................................................... 4,000,000 4,179,640 ------------ TOTAL LONG TERM INVESTMENTS (COST $330,958,085) ................................................. 353,340,588 ------------ SHORT TERM INVESTMENT (COST $3,725,000) 1.0% BONDS 1.0% U.S. TERRITORIES 1.0% (a)Puerto Rico Commonwealth Government Development Bank Revenue, Refunding, MBIA Insured, Weekly VRDN and Put, 2.85%, 12/01/15 ............................................ 3,725,000 3,725,000 ------------ TOTAL INVESTMENTS (COST $334,683,085) 98.3% ..................................................... 357,065,588 OTHER ASSETS, LESS LIABILITIES 1.7% ............................................................. 5,984,465 ------------ NET ASSETS 100.0% ............................................................................... $363,050,053 ============
See Selected Portfolio Abbreviations on page 180. (a) Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. Quarterly Statements of Investments | See Notes to Statements of Investments. | 23 This page intentionally left blank. 24 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 98.8% BONDS 98.2% ALABAMA 6.6% Alabama State GO, Series A, 4.00%, 9/01/12 ...................................................................................... $ 2,130,000 $ 2,212,750 9/01/15 ...................................................................................... 1,000,000 1,025,340 Alabama Water Pollution Control Authority Revenue, Revolving Fund Loan, Refunding, Series B, AMBAC Insured, 4.625%, 8/15/13 .......................................... 5,900,000 6,289,459 Series B, AMBAC Insured, 4.125%, 2/15/14 ..................................................... 3,000,000 3,107,010 East Alabama Health Care Authority Health Care Facilities Revenue, Tax Anticipation Bond, Series A, MBIA Insured, 4.50%, 9/01/13 ............................................................................... 1,925,000 2,030,067 4.625%, 9/01/14 .............................................................................. 2,010,000 2,118,580 4.50%, 9/01/15 ............................................................................... 2,100,000 2,192,169 Huntsville GO, Capital Improvement wts., Series C, AMBAC Insured, 4.00%, 11/01/14 ............... 1,000,000 1,029,510 Huntsville Health Care Authority Revenue, Series A, MBIA Insured, 4.80%, 6/01/13 ............................................................................ 2,400,000 2,570,952 (a)5.00%, 6/01/17 ............................................................................ 2,900,000 3,149,429 Jefferson County GO, Capital Improvement wts., Series A, MBIA Insured, 5.00%, 4/01/17 ........... 2,195,000 2,390,860 Jefferson County Ltd. Obligation School wts. Revenue, Series A, 5.25%, 1/01/16 .................. 2,000,000 2,184,500 Sylacauga GO, wts., AMBAC Insured, 5.50%, 6/01/12 ............................................... 600,000 666,024 University of Alabama General Revenue, Series A, MBIA Insured, 5.00%, 7/01/15 ................... 4,070,000 4,481,314 ------------ 35,447,964 ------------ ARIZONA 4.8% Arizona School Facilities Board Revenue, Series B, FGIC Insured, 4.00%, 9/01/13 ................. 5,000,000 5,184,750 Arizona State University COP, Research Infrastructure Projects, AMBAC Insured, 5.25%, 9/01/16 ....................................................................................... 2,505,000 2,833,756 Maricopa County GO, School District No. 11, Peoria Unified, Refunding, FSA Insured, 4.00%, 7/01/12 ............... 2,200,000 2,292,224 School District No. 40, Glendale School Improvement, 6.10%, 7/01/08 .......................... 570,000 577,216 School District No. 40, Glendale School Improvement, Pre-Refunded, 6.10%, 7/01/08 ............ 430,000 435,453 School District No. 97, Deer Valley School Improvement, Series A, FGIC Insured, 4.75%, 7/01/12 ..................................................................................... 4,000,000 4,355,440 Maricopa County Hospital Revenue, Sun Health Corp., 5.00%, 4/01/18 .............................. 2,000,000 2,078,600 Maricopa County USD No. 48 Scottsdale GO, Refunding, Series A, FSA Insured, 4.00%, 7/01/15 ....................................................................................... 3,000,000 3,100,590 Maricopa County USD No. 80 Chandler GO, Project of 2002, Series A, FSA Insured, 4.00%, 7/01/14 ....................................................................................... 1,000,000 1,034,180 Mesa GO, Refunding, Series A, FGIC Insured, 4.20%, 7/01/16 ...................................... 715,000 738,416 Tempe Arizona IDA Lease Revenue, State University Foundation, AMBAC Insured, 4.00%, 7/01/14 ...................................................................................... 1,110,000 1,147,940 7/01/15 ...................................................................................... 1,000,000 1,027,800 7/01/16 ...................................................................................... 1,000,000 1,022,860 ------------ 25,829,225 ------------ ARKANSAS 1.4% Conway Hospital Revenue, Conway Regional Medical Improvement, Refunding, Series A, 6.20%, 8/01/17 ................................................................................ 1,105,000 1,181,643 Little Rock GO, Capital Improvements, FSA Insured, 4.00%, 4/01/15 ............................... 2,500,000 2,565,425
Quarterly Statements of Investments | 25 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) ARKANSAS (CONT.) University of Arkansas University Revenues, Construction, University of Arkansas for Medical Sciences Campus, Refunding, Series A, MBIA Insured, 5.00%, 11/01/16 ............................................................... $ 1,000,000 $ 1,105,840 Student Fee University of Arkansas at Fort Smith, FSA Insured, 4.75%, 12/01/15 ............... 2,295,000 2,446,631 ------------ 7,299,539 ------------ CALIFORNIA 9.2% California State Department of Water Resources Power Supply Revenue, Series A, 5.125%, 5/01/18 ....................................................................................... 3,000,000 3,249,690 California State GO, Refunding, 5.00%, 2/01/17 .................................................................... 3,000,000 3,230,790 Various Purpose, 5.25%, 11/01/17 ............................................................. 10,000,000 11,118,900 Golden State Tobacco Securitization Corp. Tobacco Settlement Revenue, 5.00%, 6/01/12 ............ 1,500,000 1,614,420 Los Angeles Department of Water and Power Waterworks Revenue, Series B, MBIA Insured, 4.25%, 7/01/17 ................................................................................ 6,530,000 6,727,989 Los Angeles USD, GO, Series A, MBIA Insured, 4.125%, 7/01/15 .............................................................................. 2,500,000 2,584,150 4.25%, 7/01/16 ............................................................................... 2,500,000 2,600,500 Los Angeles Wastewater System Revenue, Refunding, MBIA Insured, 4.00%, 6/01/14 .................. 10,000,000 10,324,900 North Orange County Community College District GO, Election of 2002, Series B, FGIC Insured, Pre-Refunded, 4.00%, 8/01/15 ................................................................... 3,215,000 3,363,051 Tulare Joint UHSD, GO, Election of 2004, Series A, MBIA Insured, 5.00%, 8/01/16 ................. 2,870,000 3,210,468 Val Verde USD, COP, Refunding, FGIC Insured, 5.00%, 1/01/15 ..................................... 1,000,000 1,102,310 ------------ 49,127,168 ------------ COLORADO 1.8% Denver City and County COP, Series B, AMBAC Insured, Pre-Refunded, 5.75%, 12/01/16 .............. 3,000,000 3,420,870 Denver City and County Medical Facilities GO, 4.00%, 8/01/16 .................................... 6,000,000 6,100,140 ------------ 9,521,010 ------------ CONNECTICUT 0.5% Connecticut State Health and Educational Facilities Authority Revenue, Sacred Heart University, Refunding, Series C, 6.00%, 7/01/05 .......................................................... 135,000 135,244 Series C, ETM, 6.00%, 7/01/05 ................................................................ 425,000 426,101 Connecticut State HFAR, Housing Mortgage Finance Program, Series C-2, 6.00%, 11/15/10 ....................................................................................... 2,000,000 2,077,880 ------------ 2,639,225 ------------ FLORIDA 7.8% Collier County Capital Improvement Revenue, FGIC Insured, 4.60%, 10/01/13 ....................... 1,000,000 1,070,530 Collier County School Board COP, Refunding, FSA Insured, 5.00%, 2/15/16 ......................... 10,710,000 11,890,456 Jacksonville Electric Authority Revenue, Electric System, Sub Series A, Pre-Refunded, 5.00%, 10/01/16 ...................................................................................... 3,420,000 3,481,560 Jacksonville Water and Sewer System Revenue, Series B, FSA Insured, 4.10%, 10/01/13 ............. 3,000,000 3,040,470 Marion County Public Improvement Revenue, Refunding, MBIA Insured, 4.20%, 12/01/12 .............................................................................. 1,400,000 1,475,446 4.30%, 12/01/13 .............................................................................. 1,800,000 1,895,418 Marion County School Board COP, FSA Insured, 4.00%, 6/01/15 ..................................... 1,115,000 1,144,180
26 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) FLORIDA (CONT.) Orlando Waste Water Services Revenue, Refunding, Series A, AMBAC Insured, 4.00%, 10/01/14 ...................................................................................... $ 7,000,000 $ 7,196,840 Palm Beach County IDR, Lourdes-Noreen McKeen Residence, Geriatric Care Inc. Project, Pre-Refunded, 6.20%, 12/01/08 .............................................................................. 275,000 293,574 6.30%, 12/01/09 .............................................................................. 580,000 620,014 Tampa Bay Water Utility System Revenue, FGIC Insured, Pre-Refunded, 5.75%, 10/01/15 .................................................. 1,000,000 1,146,830 Series B, FGIC Insured, Pre-Refunded, 4.75%, 10/01/15 ........................................ 4,140,000 4,512,227 Series B, FGIC Insured, Pre-Refunded, 4.75%, 10/01/16 ........................................ 3,400,000 3,705,694 ------------ 41,473,239 ------------ GEORGIA 1.3% Baldwin County Hospital Authority Revenue, Oconee Regional Medical Center, 5.30%, 12/01/13 ...................................................................................... 1,020,000 985,504 South Georgia Governmental Services Authority Revenue, FGIC Insured, 5.00%, 1/01/16 ............. 2,650,000 2,952,312 Wayne County Development Authority PCR, ITT Rayonier Inc. Project, Refunding, 6.10%, 11/01/07 ...................................................................................... 3,105,000 3,116,333 ------------ 7,054,149 ------------ HAWAII 0.6% Hawaii State Department of Budget and Finance Special Purpose Revenue, Kaiser Permanente, Series A, ETM, 5.10%, 3/01/14 ............................................. 2,500,000 2,683,850 Kapi 'Olani Health Obligation, ETM, 5.60%, 7/01/06 ........................................... 500,000 514,320 ------------ 3,198,170 ------------ ILLINOIS 0.9% Chicago Park District GO, Refunding, FGIC Insured, 4.125%, 1/01/14 .............................. 3,125,000 3,235,000 Illinois Health Facilities Authority Revenue, St. Elizabeth's Hospital, 6.00%, 7/01/05 ..................................................... 70,000 70,141 Victory Health Services, Series A, 5.25%, 8/15/09 ............................................ 1,170,000 1,172,293 Metropolitan Pier and Exposition Authority Hospitality Facilities Revenue, McCormick Place Convention Center, ETM, 5.75%, 7/01/06 ......................................................... 490,000 497,566 ------------ 4,975,000 ------------ KENTUCKY 0.5% Kentucky Economic Development Finance Authority Hospital System Revenue, Appalachian Regional Health Center Facility, Refunding and Improvement, 5.70%, 10/01/10 .............................................................................. 1,000,000 993,130 5.75%, 10/01/11 .............................................................................. 1,500,000 1,490,460 ------------ 2,483,590 ------------ LOUISIANA 0.8% St. John's Baptist Parish EDR, USX Corp. Project, Refunding, 5.35%, 12/01/13 .................... 4,000,000 4,232,120 ------------ MARYLAND 0.2% Maryland State Health and Higher Educational Facilities Authority Revenue, AMBAC Insured, 5.00%, 7/01/15 ................................................................................ 1,000,000 1,114,250 ------------
Quarterly Statements of Investments | 27 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MASSACHUSETTS 2.1% Massachusetts State Development Finance Agency Resource Recovery Revenue, Waste Management Inc. Project, Mandatory Put 12/01/09, Series A, 6.90%, 12/01/29 .................... $ 3,000,000 $ 3,359,880 Massachusetts State Development Finance Agency Revenue, Loomis Community Project, first mortgage, Refunding, Series A, 5.50%, 7/01/08 ........................................... 1,990,000 2,008,945 Massachusetts State Industrial Finance Agency Resource Recovery Revenue, Ogden Haverhill Project, Refunding, Series A, 5.15%, 12/01/07 .............................................................................. 2,000,000 2,046,020 5.20%, 12/01/08 .............................................................................. 2,000,000 2,054,560 Massachusetts State Industrial Finance Agency Revenue, D'Youville Senior Care, 5.50%, 10/01/12 ...................................................................................... 1,745,000 1,845,180 ------------ 11,314,585 ------------ MICHIGAN 5.9% Battle Creek Downtown Development Authority Tax Allocation, MBIA Insured, Pre-Refunded, 5.00%, 5/01/17 ................................................................................ 3,295,000 3,482,024 Chippewa County Hospital Financing Authority Revenue, Chippewa County War Memorial Hospital, Refunding, Series B, 5.30%, 11/01/07 ................................................ 815,000 838,904 Ferris State University Revenue, Refunding, AMBAC Insured, 5.00%, 10/01/18 ...................... 2,640,000 2,735,515 Gull Lake Community School District GO, School Building and Site, FSA Insured, 5.00%, 5/01/16 ....................................................................................... 1,000,000 1,099,480 Jackson Public Schools GO, School Building and Site, Refunding, FSA Insured, 5.00%, 5/01/16 ...................................................................................... 1,925,000 2,108,837 5/01/17 ...................................................................................... 2,025,000 2,199,190 Michigan State Hospital Finance Authority Revenue, Ascension Health Credit, Series A, MBIA Insured, Pre-Refunded, 6.00%, 11/15/13 ................................................... 1,200,000 1,350,852 Otsego Public Schools District GO, School Building and Site, FSA Insured, 5.00%, 5/01/16 ........ 1,630,000 1,785,665 Saginaw-Midland Municipal Water Supply Corp. Revenue GO, Water Supply System, Refunding, MBIA Insured, 4.25%, 9/01/13 .................................................................. 1,245,000 1,315,604 South Lyon Community Schools GO, Refunding, FSA Insured, 5.00%, 5/01/17 ......................... 4,385,000 4,816,046 Wayne-Westland Community Schools GO, Refunding, 4.50%, 5/01/12 ............................................................................... 1,035,000 1,105,887 4.625%, 5/01/13 .............................................................................. 1,095,000 1,180,235 FSA Insured, 5.00%, 5/01/16 .................................................................. 2,825,000 3,107,472 Western Townships Utilities Authority GO, Refunding, MBIA Insured, 4.75%, 1/01/17 ............... 4,290,000 4,479,833 ------------ 31,605,544 ------------ MINNESOTA 6.5% Chaska ISD No. 112 GO, Refunding, Series A, 5.00%, 2/01/16 ............................................................................... 4,000,000 4,238,120 FSA Insured, 4.00%, 2/01/14 .................................................................. 2,060,000 2,116,938 Minneapolis GO, Various Purpose, 5.00%, 12/01/17 ................................................ 3,000,000 3,237,690 Minneapolis Special School District No. 001 COP, Refunding, Series B, FGIC Insured, 4.625%, 2/01/17 ....................................................................................... 1,000,000 1,047,850 Minneapolis Special School District No. 001 GO, Refunding, FSA Insured, 4.00%, 2/01/13 ...................................................................................... 3,000,000 3,111,810 2/01/14 ...................................................................................... 6,300,000 6,474,132
28 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MINNESOTA (CONT.) Mounds View ISD No. 621 GO, MBIA Insured, 5.00%, 2/01/14 ...................................................................................... $ 2,340,000 $ 2,549,734 2/01/15 ...................................................................................... 2,425,000 2,637,842 2/01/16 ...................................................................................... 2,460,000 2,668,313 Ramsey County GO, Capital Improvement Plan, Series A, 4.75%, 2/01/15 ............................ 2,215,000 2,365,930 Robbinsdale ISD No. 281 GO, Refunding, FSA Insured, 4.00%, 2/01/13 ............................................................................... 2,070,000 2,147,149 4.125%, 2/01/14 .............................................................................. 2,175,000 2,251,147 ------------ 34,846,655 ------------ MISSOURI 1.7% Jackson County Reorganized School District No. 7 Lees Summit GO, School Building, MBIA Insured, 5.00%, 3/01/16 .................................................................. 2,000,000 2,203,620 Lake of the Ozarks Community Bridge Corp. Bridge System Revenue, Pre-Refunded, 5.00%, 12/01/08 ................................................................ 1,940,000 2,016,848 Refunding, 5.00%, 12/01/08 ................................................................... 1,060,000 1,077,299 Southeast Missouri State University System Facilities Revenue, Refunding and Improvement, MBIA Insured, 4.375%, 4/01/12 .............................................................................. 335,000 354,668 4.50%, 4/01/14 ............................................................................... 545,000 574,953 4.60%, 4/01/15 ............................................................................... 1,360,000 1,434,514 4.70%, 4/01/16 ............................................................................... 1,165,000 1,229,891 ------------ 8,891,793 ------------ NEW JERSEY 3.7% Gloucester County Improvement Authority Solid Waste Resource Recovery Revenue, Waste Management Inc. Project, Mandatory Put 12/01/09, Refunding, Series A, 6.85%, 12/01/29 ..................................................................................... 2,625,000 2,951,786 Hudson County Improvement Authority Solid Waste Systems Revenue, Refunding, Series 1, 5.90%, 1/01/15 ................................................................................ 850,000 861,492 New Jersey State COP, Equipment Lease Purchase, Series A, AMBAC Insured, 5.00%, 6/15/17 ....................................................................................... 5,000,000 5,403,450 New Jersey State Transportation Trust Fund Authority Revenue, Transportation System, Refunding, Series C, FSA Insured, 4.50%, 12/15/10 ............................................. 10,000,000 10,654,400 ------------ 19,871,128 ------------ NEW YORK 11.3% Liverpool Central School District GO, Refunding, FSA Insured, 5.00%, 7/15/14 .................... 1,560,000 1,711,382 Middletown City School District GO, Refunding, Series A, FSA Insured, 4.00%, 11/01/14 ..................................................................................... 1,785,000 1,842,780 11/01/15 ..................................................................................... 2,050,000 2,105,555 MTA Commuter Facilities Revenue, Services Contract, Refunding, Series R, ETM, 5.50%, 7/01/11 ....................................................................................... 2,215,000 2,410,474 MTA Transit Facilities Revenue, Series A, Pre-Refunded, 6.00%, 7/01/15 .......................... 1,500,000 1,673,910 New York City GO, Refunding, Series H, 5.00%, 8/01/17 .......................................................... 4,330,000 4,659,167 Series C, MBIA Insured, 5.875%, 8/01/16 ...................................................... 1,250,000 1,417,825
Quarterly Statements of Investments | 29 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) NEW YORK (CONT.) New York City GO, (cont.) Series F, 4.75%, 1/15/16 ..................................................................... $ 3,000,000 $ 3,160,440 Series H, 5.90%, 8/01/09 ..................................................................... 495,000 527,398 Series H, 5.00%, 8/01/16 ..................................................................... 3,000,000 3,244,800 Series H, Pre-Refunded, 5.90%, 8/01/09 ....................................................... 5,000 5,370 Series I, 5.00%, 8/01/18 ..................................................................... 10,000,000 10,712,600 Series J, 6.00%, 8/01/08 ..................................................................... 985,000 1,053,221 Series J, Pre-Refunded, 6.00%, 8/01/08 ....................................................... 2,015,000 2,165,984 New York City Transitional Finance Authority Revenue, Series C, 4.50%, 2/15/13 .................. 4,500,000 4,777,515 New York State Dormitory Authority Revenue, FHA Insured Mortgage, St. Barnabas, Series B, AMBAC Insured, 4.25%, 8/01/14 ................................................................. 2,355,000 2,453,792 New York State Dormitory Authority Revenues, Mental Health Services Facilities Improvement, Refunding, Series D, 5.60%, 2/15/07 .......................................................... 140,000 146,006 Series D, MBIA Insured, 5.00%, 8/15/17 ....................................................... 2,000,000 2,113,480 New York State Energy Research and Development PCR, New York State Electric and Gas, MBIA Insured, 4.10%, 3/15/15 .................................................................. 7,000,000 7,100,520 New York State Thruway Authority Service Contract Revenue, Local Highway and Bridge, Pre-Refunded, 5.75%, 4/01/08 ...................................................................................... 500,000 522,035 4/01/09 ...................................................................................... 1,150,000 1,200,681 Port Authority of New York and New Jersey Revenue, Consolidated, Refunding, 134th Series, 4.00%, 7/15/14 ................................................................................ 2,460,000 2,507,035 Port Authority of New York and New Jersey Special Obligation Revenue, 3rd Installment, 7.00%, 10/01/07 ............................................................................... 700,000 723,128 Yonkers GO, Series B, FSA Insured, 4.00%, 10/15/16 .............................................. 1,890,000 1,932,468 ------------ 60,167,566 ------------ NORTH CAROLINA 5.8% Asheville Water System Revenue, FSA Insured, 5.25%, 8/01/15 ...................................................................................... 915,000 1,013,161 8/01/17 ...................................................................................... 1,020,000 1,120,480 8/01/19 ...................................................................................... 1,030,000 1,126,686 Charlotte Water and Sewer System Revenue, 5.00%, 6/01/16 ........................................ 4,000,000 4,352,120 Mecklenburg County GO, Public Improvement, Series A, 4.00%, 2/01/16 ............................. 5,000,000 5,122,550 North Carolina Eastern Municipal Power Agency Power System Revenue, Refunding, Series D, 6.00%, 1/01/09 .......................................................... 800,000 848,968 Series D, 6.45%, 1/01/14 ..................................................................... 1,000,000 1,111,640 North Carolina Infrastructure Financial Corp. COP, Correctional Facilities Project, Series A, 4.00%, 2/01/17 ................................................................................ 2,715,000 2,748,639 North Carolina Municipal Power Agency No. 1 Catawba Electric Revenue, Refunding, Series B, 6.50%, 1/01/09 ................................................................................ 5,000,000 5,505,450 Rutherford County COP, Refunding, AMBAC Insured, 5.00%, 9/01/17 ................................. 1,275,000 1,380,736 Wake County GO, Public Improvement, 4.50%, 3/01/14 .............................................. 6,400,000 6,812,864 ------------ 31,143,294 ------------ OHIO 9.6% Akron GO, Various Purpose, Refunding and Improvement, MBIA Insured, 4.125%, 12/01/14 ...................................................................................... 1,000,000 1,040,220 Akron Income Tax Revenue, Community Learning Centers, FGIC Insured, 4.00%, 12/01/14 ............. 2,140,000 2,216,441
30 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) OHIO (CONT.) Allen County GO, AMBAC Insured, 4.75%, 12/01/17 ................................................. $ 2,180,000 $ 2,322,746 Bowling Green State University of Ohio General Receipts GO, MBIA Insured, 5.00%, 6/01/14 ...................................................................................... 2,285,000 2,547,524 6/01/15 ...................................................................................... 1,400,000 1,549,450 Butler County GO, MBIA Insured, 4.00%, 12/01/14 ................................................. 1,210,000 1,253,221 Cleveland Municipal School District GO, FSA Insured, 5.00%, 12/01/14 ..................................................................................... 1,915,000 2,133,444 12/01/15 ..................................................................................... 1,510,000 1,671,192 12/01/16 ..................................................................................... 1,400,000 1,541,540 Franklin County Health Care Facilities Revenue, Presbyterian Retirement Services, Refunding, 5.25%, 7/01/08 ............................................................................... 575,000 584,108 5.40%, 7/01/10 ............................................................................... 775,000 793,251 5.50%, 7/01/11 ............................................................................... 500,000 512,040 Kenston Local School District GO, School Improvement, MBIA Insured, 4.00%, 12/01/15 ............. 1,775,000 1,823,937 Lake Ohio Local School District GO, MBIA Insured, 5.20%, 12/01/17 ............................... 2,565,000 2,791,592 Mahoning County Sewer System Revenue, AMBAC Insured, 5.20%, 12/01/14 ............................ 1,360,000 1,485,174 Mason City School District GO, School Improvement, Refunding, FGIC Insured, 5.00%, 12/01/15 ..................................................................................... 2,670,000 2,984,393 Ohio State Building Authority Revenue, State Facilities, Administration Building Fund Project, Refunding, Series B, FSA Insured, 4.00%, 10/01/12 ............................................... 1,000,000 1,041,230 Ohio State GO, Common Schools, Series B, 4.00%, 9/15/14 ......................................... 8,895,000 9,134,009 Penta Career Center COP, Wood Lucas Sandusky Fulton Ottawa Henry and Hancock Counties, FGIC Insured, 4.00%, 4/01/15 ...................................................................................... 1,620,000 1,644,041 4/01/16 ...................................................................................... 1,685,000 1,701,176 Southwest Regional Water District Water Revenue, Refunding and Improvement, MBIA Insured, 4.00%, 12/01/13 ..................................................................................... 1,020,000 1,061,004 12/01/14 ..................................................................................... 1,020,000 1,056,434 University of Akron General Receipts Revenue, FGIC Insured, Pre-Refunded, 5.75%, 1/01/14 ....................................................................................... 2,000,000 2,244,620 University of Cincinnati General Receipts Revenue, Series A, AMBAC Insured, 5.00%, 6/01/17 ....................................................................................... 3,000,000 3,323,370 Westerville City School District GO, Refunding, MBIA Insured, 5.00%, 12/01/18 ................... 1,000,000 1,093,230 Youngstown GO, AMBAC Insured, 6.125%, 12/01/15 .................................................. 1,275,000 1,543,120 ------------ 51,092,507 ------------ OKLAHOMA 0.4% Okmulgee County Governmental Building Authority Sales Tax Revenue, first mortgage, MBIA Insured, 5.60%, 3/01/10 ............................................................................... 930,000 1,009,050 6.00%, 3/01/15 ............................................................................... 700,000 765,261 Valley View Hospital Authority Revenue, Valley View Regional Medical Center, Refunding, 5.75%, 8/15/06 ................................................................................ 295,000 303,104 ------------ 2,077,415 ------------ OREGON 4.1% Clackamas County Hospital Facilities Authority Revenue, Willamette View Inc. Project, Refunding, 6.00%, 11/01/06 .................................................................... 500,000 511,840
Quarterly Statements of Investments | 31 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) OREGON (CONT.) Emerald Peoples Utility District Revenue, Refunding, Series A, FSA Insured, 4.00%, 11/01/14 ..................................................................................... $ 2,380,000 $ 2,464,252 11/01/15 ..................................................................................... 2,475,000 2,546,230 Lane County School District No. 052 Bethel GO, Refunding, FSA Insured, 3.75%, 6/15/12 ............................................................................... 1,000,000 1,027,400 3.75%, 6/15/13 ............................................................................... 1,785,000 1,822,646 3.875%, 6/15/14 .............................................................................. 1,935,000 1,978,654 Oregon State Facilities Authority Revenue, Peacehealth, Series A, AMBAC Insured, 5.00%, 8/01/13 ....................................................................................... 2,305,000 2,539,902 Portland GO, Arena, Refunding, Series B, 5.00%, 6/01/16 ......................................... 3,075,000 3,403,748 Salem Water and Sewer Revenue, MBIA Insured, 4.10%, 6/01/16 ................................................................. 1,035,000 1,068,493 Refunding, FSA Insured, 4.375%, 6/01/11 ...................................................... 2,160,000 2,297,441 Refunding, FSA Insured, 4.50%, 6/01/12 ....................................................... 2,250,000 2,415,960 ------------ 22,076,566 ------------ PENNSYLVANIA 2.4% Allegheny County IDAR, Pollution Control, Refunding, Series A, AMBAC Insured, 4.35%, 12/01/13 ...................................................................................... 5,000,000 5,272,350 Clarion County Hospital Authority Revenue, Clarion Hospital Project, Refunding, 5.40%, 7/01/07 ....................................................................................... 1,135,000 1,135,613 Pittsburgh Water and Sewer Authority Revenue, Refunding, FSA Insured, 4.00%, 9/01/14 ...................................................................................... 4,000,000 4,153,600 9/01/15 ...................................................................................... 2,000,000 2,056,540 ------------ 12,618,103 ------------ SOUTH CAROLINA 0.6% Charleston County Resource Recovery Revenue, Foster Wheeler Charleston, Refunding, AMBAC Insured, 5.25%, 1/01/10 ................................................................. 1,000,000 1,079,550 Rock Hill Utility System Revenue, Refunding and Improvement, Series A, FSA Insured, 4.00%, 1/01/14 ....................................................................................... 2,000,000 2,066,020 ------------ 3,145,570 ------------ TENNESSEE 0.7% Tennessee State School Board Authority Revenue, Higher Educational Facilities, Second Program, Series A, FSA Insured, 5.00%, 5/01/13 ................................................ 3,425,000 3,744,450 ------------ TEXAS 3.1% Abilene Higher Educational Facilities Revenue, Abilene Christian University, 5.90%, 10/01/05 .............................................................................. 720,000 725,782 ETM, 5.90%, 10/01/05 ......................................................................... 65,000 65,680 Edgewood ISD Bexar County GO, Series A, 5.00%, 2/15/16 ...................................................................................... 1,225,000 1,341,522 2/15/17 ...................................................................................... 1,285,000 1,400,239 Houston Hotel Occupancy Tax and Special Revenue, Convention and Entertainment, Series B, AMBAC Insured, 5.00%, 9/01/11 ................................................................. 6,000,000 6,571,080 Laredo ISD Public Facility Corp. Lease Revenue, Series A, AMBAC Insured, 5.00%, 8/01/15 ...................................................... 1,000,000 1,070,990 Series C, AMBAC Insured, 5.00%, 8/01/19 ...................................................... 1,000,000 1,062,490
32 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) TEXAS (CONT.) Port Corpus Christi Nueces County General Revenue, Union Pacific, Refunding, 5.35%, 11/01/10 ...................................................................................... $ 2,500,000 $ 2,569,225 Travis County Health Facilities Development Corp. Revenue, Ascension Health Credit, Series A, MBIA Insured, Pre-Refunded, 6.25%, 11/15/17 ................................................... 1,500,000 1,707,375 ------------ 16,514,383 ------------ U.S. TERRITORIES 1.7% District of Columbia GO, Refunding, Series A, 5.875%, 6/01/05 ......................................................... 200,000 200,000 Series A, ETM, 5.875%, 6/01/05 ............................................................... 500,000 500,000 Virgin Islands PFAR, senior lien, Refunding, Series A, 5.30%, 10/01/11 .......................... 4,000,000 4,272,800 Virgin Islands Water and Power Authority Water System Revenue, Refunding, 4.875%, 7/01/06 .............................................................................. 1,300,000 1,314,989 5.00%, 7/01/09 ............................................................................... 2,400,000 2,499,480 ------------ 8,787,269 ------------ UTAH 0.6% Salt Lake County College Revenue, Refunding, 5.00%, 10/01/19 ................................................................... 2,585,000 2,688,503 Westminster College Project, 5.50%, 10/01/12 ................................................. 340,000 358,350 ------------ 3,046,853 ------------ WASHINGTON 1.5% King County GO, Refunding, Series A, MBIA Insured, 4.00%, 1/01/16 ............................... 3,490,000 3,537,115 King County School District No. 406 South Central GO, Refunding, FSA Insured, 5.00%, 12/01/16 ...................................................................................... 3,000,000 3,277,170 Washington State Public Power Supply System Revenue, Nuclear Project No. 1, Refunding, Series A, AMBAC Insured, 5.70%, 7/01/09 ....................................................... 1,000,000 1,048,420 ------------ 7,862,705 ------------ WEST VIRGINIA 0.1% West Virginia Public Energy Authority Energy Revenue, Morgantown Assn. Project, Series A, 5.05%, 7/01/08 ................................................................................ 610,000 618,967 ------------ TOTAL BONDS (COST $502,355,504) ................................................................. 523,820,002 ------------ STEP-UP BOND (COST $2,741,291) 0.6% CALIFORNIA 0.6% San Joaquin Hills Transportation Corridor Agency Toll Road Revenue, Capital Appreciation, Refunding, Series A, zero cpn. to 1/15/07, 5.65% thereafter, 1/15/17 .......................... 3,000,000 2,749,110 ------------ TOTAL LONG TERM INVESTMENTS (COST $505,096,795) ................................................. 526,569,112 ------------ SHORT TERM INVESTMENTS 0.5% BONDS 0.5% FLORIDA 0.0%(b) (c)Orange County School Board COP, Series B, AMBAC Insured, Daily VRDN and Put, 2.97%, 8/01/25 ....................................................................................... 300,000 300,000 ------------ GEORGIA 0.1% (c)Atlanta Water and Wastewater Revenue, Series C, FSA Insured, Daily VRDN and Put, 2.97%, 11/01/41 ...................................................................................... 700,000 700,000 ------------
Quarterly Statements of Investments | 33 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM INVESTMENTS (CONT.) BONDS (CONT.) LOUISIANA 0.1% (c)Louisiana State Offshore Terminal Authority Deepwater Port Revenue, Loop Inc. Project, First Stage, ACES, Refunding, Daily VRDN and Put, 2.97%, 9/01/17 .............................. $ 400,000 $ 400,000 ------------ MICHIGAN 0.1% (c)Detroit Sewage Disposal Revenue, senior lien, Series B, FSA Insured, Daily VRDN and Put, 2.97%, 7/01/33 ................................................................................ 400,000 400,000 ------------ NEW YORK 0.1% (c)Jay Street Development Corp. Courts Facility Lease Revenue, Jay Street Project, Series A-4, Daily VRDN and Put, 2.94%, 5/01/22 ............................................................ 200,000 200,000 (c)Long Island Power Authority Electric System Revenue, Sub Series 2, Daily VRDN and Put, 2.94%, 5/01/33 ................................................................................ 100,000 100,000 (c)New York City Municipal Water Finance Authority Water and Sewer System Revenue, Series G, FGIC Insured, Daily VRDN and Put, 2.94%, 6/15/24 .............................................. 300,000 300,000 ------------ 600,000 ------------ TENNESSEE 0.1% (c)Clarksville PBA Revenue, Pooled Financing, Tennessee Municipal Bond Fund, Daily VRDN and Put, 2.98%, 7/01/31 ........................................................................... 400,000 400,000 ------------ TOTAL SHORT TERM INVESTMENTS (COST $2,800,000) .................................................. 2,800,000 ------------ TOTAL INVESTMENTS (COST $507,896,795) 99.3% ..................................................... 529,369,112 OTHER ASSETS, LESS LIABILITIES 0.7% ............................................................. 3,984,829 ------------ NET ASSETS 100.0% ............................................................................... $533,353,941 ============
See Selected Portfolio Abbreviations on page 180. (a) Security purchased on a when-issued or delayed delivery basis. (b) Rounds to less than 0.05% of net assets. (c) Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. 34 | See Notes to Statements of Investments. | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL LIMITED-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 88.8% BONDS 88.8% ALABAMA 0.8% Etowah County Board of Education Special Tax School wts., FSA Insured, 2.60%, 9/01/08 ........... $ 250,000 $ 246,575 ------------ ALASKA 5.2% Alaska State Housing Finance Corp. Revenue, General Housing, Series B, MBIA Insured, 3.50%, 6/01/06 ................................................................................ 1,175,000 1,181,404 Kenai Peninsula Boro GO, Center Kenai Peninsula Hospital Service Area, FGIC Insured, 3.25%, 8/01/09 ....................................................................................... 500,000 501,535 ------------ 1,682,939 ------------ ARIZONA 4.0% Buckeye UHSD No. 201 GO, School Improvement Project, Series B, MBIA Insured, 3.00%, 7/01/08 ....................................................................................... 500,000 500,725 Mohave County Beneficial Interest COP, Mohave Administration Building Project, AMBAC Insured, 3.00%, 1/01/06 ................................................................................ 350,000 350,515 Oro Valley Municipal Property Corp. Revenue, senior lien, Water Project, MBIA Insured, 3.00%, 7/01/08 ....................................................................................... 425,000 425,616 ------------ 1,276,856 ------------ ARKANSAS 3.1% Fayetteville Sales and Use Tax Capital Improvement Special Assessment, 4.00%, 12/01/05 .......... 1,000,000 1,005,850 ------------ CALIFORNIA 6.4% California State University at Channel Islands Financing Authority Revenue, Rental Housing and Town Center, Mandatory Put 8/01/07, Series A, 2.50%, 8/01/44 .............................. 1,000,000 991,250 Los Angeles Water and Power Revenue, Power System, Series A, Sub Series A-1, 4.00%, 7/01/06 ....................................................................................... 1,050,000 1,063,492 ------------ 2,054,742 ------------ COLORADO 1.0% Colorado Water Resources and Power Development Authority Revenue, Series B, 3.25%, 9/01/07 ....................................................................................... 320,000 322,893 ------------ FLORIDA 3.1% Coral Gables Health Facilities Authority Hospital Revenue, Baptist Health South Florida, FSA Insured, 5.00%, 8/15/09 ................................................................... 750,000 803,842 Jupiter Water Revenue, AMBAC Insured, 3.75%, 10/01/07 ........................................... 105,000 107,111 Marion County Utility System Revenue, Series A, MBIA Insured, 2.00%, 12/01/06 ................... 100,000 98,228 ------------ 1,009,181 ------------ GEORGIA 1.7% Association County Commissioners Leasing Program COP, DeKalb County Public Purpose Project, 2.50%, 12/01/07 ...................................................................... 555,000 545,576 ------------ INDIANA 0.4% Madison Grant Industry School Building Corp. Revenue, First Mortgage, AMBAC Insured, 2.25%, 1/15/06 ................................................................................ 120,000 119,431 ------------ KANSAS 1.2% Johnson County Water District No. 001 Water Revenue, Refunding, 2.50%, 6/01/08 .................. 400,000 392,468 ------------
Quarterly Statements of Investments | 35 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL LIMITED-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) KENTUCKY 1.9% Anderson County School District Financial Corp. School Building Revenue, Refunding, Series B, 3.80%, 3/01/06 ................................................................................ $ 120,000 $ 120,910 Breathitt County Justice Center Corp. Revenue, Justice Center Project, MBIA Insured, 3.00%, 10/01/06 ...................................................................................... 55,000 55,098 Breathitt County School District Financial Corp. School Building Revenue, Refunding, Second Series, 4.00%, 3/01/07 ........................................................................ 110,000 111,795 Kentucky State Property and Building Commission Revenues, Project No. 80, Refunding, Series A, MBIA Insured, 2.75%, 5/01/08 ........................................................ 225,000 223,378 Woodford County School District Financial Corp. School Building Revenue, Refunding, 4.30%, 8/01/06 ....................................................................................... 100,000 101,618 ------------ 612,799 ------------ MASSACHUSETTS 0.6% Massachusetts State Development Finance Agency Revenue, Brandeis University, Series K, FGIC Insured, 2.50%, 10/01/07 ................................................................. 200,000 197,732 ------------ MICHIGAN 1.9% Commerce Charter Township Michigan GO, Special Assessment, Series A, FSA Insured, 2.50%, 10/01/06 ...................................................................................... 100,000 99,334 Detroit GO, Refunding, Series B, XLCA Insured, 3.00%, 4/01/06 ................................... 400,000 400,740 Michigan Municipal Bond Authority Revenue, Local Government Loan Project, Series B, AMBAC Insured, 2.75%, 11/01/08 ................................................................ 100,000 99,354 ------------ 599,428 ------------ MINNESOTA 3.8% St. Paul Port Authority Lease Revenue, Office Building at Cedar Street-03-12, 2.50%, 12/01/07 ...................................................................................... 500,000 492,735 Washington County GO, Jail, Refunding, Series B, 2.50%, 2/01/07 ................................. 750,000 744,540 ------------ 1,237,275 ------------ MISSISSIPPI 3.1% Mississippi State GO, Capital Improvements Building Fund Arts Project, 3.125%, 11/01/10 ......... 1,000,000 996,280 ------------ MISSOURI 4.6% Missouri State Development Finance Board Infrastructure Facilities Revenue, Hartman Heritage Center Phase II, AMBAC Insured, 3.00%, 4/01/08 ................................................ 200,000 200,534 Platte County COP, Public Improvements, 2.40%, 10/01/08 ......................................... 200,000 194,622 Springfield COP, Enterprise System Project, 3.85%, 2/01/08 ...................................... 50,000 51,103 Springfield Public Building Corp. Leasehold Revenue, Capital Improvement Program, AMBAC Insured, 4.00%, 3/01/09 ................................................................. 1,000,000 1,035,490 ------------ 1,481,749 ------------ NEVADA 5.6% Henderson Local ID Special Assessment, No. T-1, Lake Las Vegas, Refunding, Senior Series A-1, FSA Insured, 3.75%, 8/01/09 ........... 1,265,000 1,297,321 No. T-6, Limited Obligation, Refunding, Senior Series A, FSA Insured, 2.85%, 11/01/09 ........ 285,000 278,904 Washoe County Improvement Bonds, Refunding, FSA Insured, 2.50%, 11/01/08 ........................ 220,000 214,821 ------------ 1,791,046 ------------
36 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL LIMITED-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) NEW JERSEY 3.1% Washington Township Board of Education Gloucester County GO, Refunding, MBIA Insured, 2.75%, 2/01/08 ................................................................................ $ 1,000,000 $ 996,160 ------------ NEW YORK 8.3% Buffalo Fiscal Stability Authority Sales Tax and State Aid Revenue, Series A, 4.00%, 8/15/05 ....................................................................................... 1,000,000 1,002,460 New York State Dormitory Authority Revenues, Hospital, Maimonides, MBIA Insured, 3.50%, 8/01/09 ........................................... 300,000 304,407 Non Supported Debt, Cerebral Palsy, Pooled, Series A, Assured Guaranty, 4.00%, 7/01/07 ..................................................................................... 710,000 724,903 New York State Urban Development Corp. Revenue, Correctional and Youth Facilities Service, Mandatory Put 1/01/09, Series A, 4.00%, 1/01/28 ..................................................................................... 400,000 410,048 State Personal Income Tax, Series C-1 Empire State, 2.80%, 12/15/09 .......................... 245,000 238,206 ------------ 2,680,024 ------------ OHIO 6.7% Franklin County Hospital Revenue, Hospital Corp., Refunding, Series C, MBIA Insured, 2.50%, 5/15/08 ....................................................................................... 500,000 491,145 Jackson Local School District Stark and Summit Counties GO, Construction and Improvement, FGIC Insured, 2.00%, 12/01/05 ................................................................. 445,000 442,651 Stark County GO, Sewage System, Refunding, AMBAC Insured, 2.50%, 12/01/08 ....................... 370,000 362,378 Sugarcreek Local School District GO, School Improvement, Refunding, MBIA Insured, 2.00%, 12/01/06 ...................................................................................... 500,000 490,825 Warren GO, AMBAC Insured, 2.00%, 12/01/06 ....................................................... 365,000 358,302 ------------ 2,145,301 ------------ OKLAHOMA 0.5% Oklahoma County ISD No. 12 Edmond GO, Building, 2.25%, 7/01/06 .................................. 100,000 99,200 Oklahoma Development Finance Authority Lease Revenue, Department of Human Services County Office, AMBAC Insured, 3.25%, 2/01/06 .................................................. 75,000 75,257 ------------ 174,457 ------------ OREGON 0.3% Lake County School District No. 014 GO, Refunding, FSA Insured, 2.50%, 1/15/08 .................. 105,000 103,442 ------------ PENNSYLVANIA 1.3% Lehigh County IDA, PCR, Electrical Utilities Corp. Project, Refunding, AMBAC Insured, 3.125%, 11/01/08 ...................................................................................... 150,000 151,086 Pittsburgh Water and Sewer Authority Revenue, Refunding, FSA Insured, 2.65%, 9/01/08 ............ 250,000 246,610 ------------ 397,696 ------------ RHODE ISLAND 0.3% Rhode Island Housing and Mortgage Financial Corp. Revenue, Home Ownership Opportunity, Series 44 A, 2.40%, 10/01/07 .................................................................. 100,000 97,945 ------------ SOUTH CAROLINA 0.2% Florence County GO, Public Improvements, AMBAC Insured, 3.75%, 3/01/08 .......................... 75,000 76,767 ------------
Quarterly Statements of Investments | 37 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL LIMITED-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) SOUTH DAKOTA 1.1% South Dakota HDA Revenue, Series D, 2.90%, 5/01/09 .............................................. $ 375,000 $ 364,785 ------------ TEXAS 5.2% Hays County GO, Refunding and Improvement, AMBAC Insured, 3.875%, 8/15/07 ....................... 255,000 260,199 San Antonio Electric and Gas Revenue, System, junior lien, Mandatory Put 12/01/05, 2.20%, 12/01/27 ...................................................................................... 1,000,000 996,440 Sienna Plantation MUD No. 2 GO, FGIC Insured, 4.75%, 10/01/06 ..................................................................................... 70,000 71,709 10/01/07 ..................................................................................... 75,000 78,082 10/01/08 ..................................................................................... 80,000 84,347 Westador MUD, GO, FSA Insured, 4.00%, 3/01/09 ................................................... 170,000 171,488 ------------ 1,662,265 ------------ U.S. TERRITORIES 1.4% Guam International Airport Authority Revenue, Series A, MBIA Insured, 2.375%, 10/01/08 .......... 240,000 231,852 Puerto Rico Commonwealth GO, Public Improvement, Mandatory Put 7/01/08, Refunding, Series C, MBIA Insured, 5.00%, 7/01/28 ........................................................ 200,000 211,852 ------------ 443,704 ------------ UTAH 3.7% Davis County Sales Tax Revenue, Series B, AMBAC Insured, 2.55%, 10/01/08 ........................ 180,000 176,269 Davis County School District GO, Utah School Board Guaranty Program, Refunding, Series B, 3.50%, 6/01/08 ................................................................................ 1,000,000 1,015,940 ------------ 1,192,209 ------------ VIRGINIA 0.9% Virginia Beach Development Authority Public Facility Revenue, Series A, 3.00%, 12/01/07 ......... 300,000 300,645 ------------ WASHINGTON 6.8% Burlington Sewer Revenue, Refunding, MBIA Insured, 2.50%, 9/01/06 ............................... 200,000 198,712 King County School District No. 403 Renton GO, FSA Insured, 3.00%, 12/01/07 ..................... 500,000 501,195 Sunmer Water and Sewer Revenue, Utility Local Improvement District NO.73 and 74, FSA Insured, 1.80%, 10/01/06 .................................................................. 150,000 146,778 Vancouver Water and Sewer Revenue, Refunding, FSA Insured, 5.00%, 6/01/08 ....................... 1,000,000 1,058,340 Washington COP, Equipment, Series C, 2.00%, 1/01/06 ............................................. 100,000 99,335 Yakima Tieton Irrigation District Revenue, Refunding, FSA Insured, 2.50%, 6/01/06 ............... 200,000 198,998 ------------ 2,203,358 ------------ WEST VIRGINIA 0.6% West Virginia State Hospital Finance Authority Hospital Revenue, West Virginia University Hospital, Refunding, FSA Insured, 2.50%, 6/01/07 .............................................. 205,000 202,062 ------------ TOTAL LONG TERM INVESTMENTS (COST $28,862,007) .................................................. 28,613,640 ------------ SHORT TERM INVESTMENTS 10.4% BONDS 10.4% CALIFORNIA 3.9% California State RAN, Series A, 3.00%, 6/30/05 .................................................. 1,250,000 1,250,163 ------------
38 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL LIMITED-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM INVESTMENTS (CONT.) BONDS (CONT.) FLORIDA 0.3% (a)Alachua County Health Facilities Continuing Care Revenue, Oak Hammock University of Florida Project, Series A, Daily VRDN and Put, 2.97%, 10/01/32 ................................ $ 100,000 $ 100,000 ------------ GEORGIA 1.3% (a)Athens-Clarke County Unified Government Authority Revenue, University of Georgia Athletic Assn. Project, Daily VRDN and Put, 2.98%, 8/01/33 ............................................. 300,000 300,000 (a)Hapeville IDAR, Hapeville Hotel Ltd., Daily VRDN and Put, 2.92%, 11/01/15 ....................... 100,000 100,000 ------------ 400,000 ------------ MARYLAND 0.3% (a)Baltimore County Revenue, Oak Crest Village Inc. Project, Series A, Weekly VRDN and Put, 2.97%, 1/01/29 ................................................................................ 100,000 100,000 ------------ MINNESOTA 2.4% (a)Minneapolis GO, Block E Bonds, Series A, Weekly VRDN and Put, 2.82%, 3/01/27 ................................. 200,000 200,000 Library, Weekly VRDN and Put, 2.82%, 12/01/32 ................................................ 200,000 200,000 (a)Spring Lake Park Senior Housing Revenue, Oak Crest Apartment Project, Refunding, FNMA Insured, Weekly VRDN and Put, 2.97%, 2/15/33 ............................................. 385,000 385,000 ------------ 785,000 ------------ NEW YORK 0.6% (a)Jay Street Development Corp. Courts Facility Lease Revenue, Jay Street Project, Series A-4, Daily VRDN and Put, 2.94%, 5/01/22 ............................................................ 100,000 100,000 (a)Nassau County Interim Finance Authority Revenue, Sales Tax Secured, Refunding, Series B, FSA Insured, Weekly VRDN and Put, 2.90%, 11/15/22 ............................................. 100,000 100,000 ------------ 200,000 ------------ OHIO 0.3% (a)Cuyahoga County Hospital Revenue, University Hospitals of Cleveland, Daily VRDN and Put, 2.86%, 1/01/16 ................................................................................ 100,000 100,000 ------------ PENNSYLVANIA 1.3% Philadelphia Gas Works Revenue, 18th Series, 5.00%, 8/01/05 ..................................... 420,000 421,348 ------------ TOTAL SHORT TERM INVESTMENTS (COST $3,358,417) .................................................. 3,356,511 ------------ TOTAL INVESTMENTS (COST $32,220,424) 99.2% ...................................................... 31,970,151 OTHER ASSETS, LESS LIABILITIES 0.8% ............................................................. 249,189 ------------ NET ASSETS 100.0% ............................................................................... $ 32,219,340 ============
See Selected Portfolio Abbreviations on page 180. (a) Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. Quarterly Statements of Investments | See Notes to Statements of Investments. | 39 This page intentionally left blank. 40 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FLORIDA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 99.0% BONDS 99.0% FLORIDA 99.0% Alachua County Public Improvement Revenue, AMBAC Insured, 5.25%, 8/01/29 ........................ $ 2,500,000 $ 2,673,500 Alachua County School Board COP, AMBAC Insured, 5.00%, 7/01/20 .................................. 1,000,000 1,075,890 Broward County HFAR, FSA Insured, 5.65%, 11/01/22 .............................................................................. 405,000 415,951 5.70%, 11/01/29 .............................................................................. 225,000 231,007 Broward County School Board COP, MBIA Insured, 5.00%, 7/01/28 .............................................................. 2,000,000 2,111,380 Series A, FSA Insured, 5.00%, 7/01/22 ..................................................... 2,000,000 2,125,960 Series A, FSA Insured, 5.00%, 7/01/26 ..................................................... 2,850,000 3,011,481 (a)Series A, FSA Insured, 5.00%, 7/01/29 ..................................................... 1,000,000 1,058,400 Canaveral Port Authority Revenue, Refunding, Series B, FGIC Insured, Pre-Refunded, 5.625%, 6/01/21 ....................................................................................... 1,000,000 1,047,170 Coral Gables Health Facilities Authority Hospital Revenue, Baptist Health South Florida, FSA Insured, 5.00%, 8/15/29 ................................................................... 1,500,000 1,577,835 Dade County HFA, MFMR, Siesta Pointe Apartments, Series A, FSA Insured, 5.75%, 9/01/29 ....................................................................................... 1,890,000 1,944,905 Dade County Water and Sewer System Revenue, FGIC Insured, 5.25%, 10/01/21 ....................... 1,000,000 1,054,640 Daytona Beach Utility System Revenue, Refunding, Series B, FGIC Insured, 5.00%, 11/15/32 ...................................................................................... 1,000,000 1,056,390 Destin Capital Improvement Revenue, MBIA Insured, 5.00%, 8/01/27 ................................ 1,315,000 1,395,373 Escambia County HFA, SFMR, Multi County Program, Series A, MBIA Insured, 6.40%, 10/01/30 ...................................................................................... 235,000 236,939 Escambia County Utilities Authority Utility System Revenue, FGIC Insured, 5.00%, 1/01/31 ................................................................. 1,775,000 1,845,787 Refunding, Series B, FGIC Insured, 5.00%, 1/01/22 ............................................ 2,000,000 2,124,120 Florida HFAR, Spinnaker Cove Apartments, Series G, AMBAC Insured, 6.50%, 7/01/36 ................ 1,600,000 1,659,600 Florida HFC Revenue, Housing Logans Pointe Apartments, Series F-1, FSA Insured, 5.90%, 12/01/19 ................... 1,205,000 1,281,168 Marina Bay Apartments, Series S, FSA Insured, 5.85%, 2/01/41 ................................. 1,070,000 1,123,960 Florida Intergovernmental Finance Commission Capital Revenue, Series A, AMBAC Insured, 5.00%, 8/01/32 ................................................................................ 3,570,000 3,744,859 Florida State Board of Education GO, Series F, MBIA Insured, 5.00%, 6/01/28 ..................... 2,000,000 2,117,440 Florida State Board Regent Housing Revenue, University of Florida, FGIC Insured, 5.25%, 7/01/30 ....................................................................................... 2,000,000 2,133,000 Florida State Correctional Privatization Commission COP, Series B, AMBAC Insured, 5.00%, 8/01/25 ....................................................................................... 2,000,000 2,144,100 Florida State Department of Environmental Protection Preservation Revenue, Florida Forever, Series A, MBIA Insured, 5.00%, 7/01/21 ........................................................ 3,000,000 3,215,490 Florida State Department of General Services Division Facilities Management Revenue, Florida Facilities Pool, Series B, FSA Insured, 5.50%, 9/01/28 ........................................ 550,000 598,433 Gulf Breeze Revenue, FGIC Insured, 5.80%, 12/01/20 ................................................................ 1,250,000 1,416,300 Local Government Loan Program, FGIC Insured, 6.05%, 12/01/15 ................................. 1,915,000 2,021,225 Hillsborough County IDA, PCR, Tampa Electric Co. Project, Refunding, MBIA Insured, 6.25%, 12/01/34 ...................................................................................... 1,500,000 1,544,550 Hillsborough County School Board COP, MBIA Insured, 5.00%, 7/01/26 ............................................................................... 1,670,000 1,787,301 Pre-Refunded, 5.375%, 7/01/26 ................................................................ 2,000,000 2,180,180
Quarterly Statements of Investments | 41 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FLORIDA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) FLORIDA (CONT.) Indian River County Water and Sewer Revenue, FGIC Insured, Pre-Refunded, 5.50%, 9/01/26 ....................................................................................... $ 1,000,000 $ 1,052,320 Indian Trail Water Control District Improvement Revenue, MBIA Insured, 5.75%, 8/01/16 ............................................................................... 1,090,000 1,147,672 5.50%, 8/01/22 ............................................................................... 500,000 527,290 Jacksonville Capital Improvement Revenue, Refunding, Series C, AMBAC Insured, 5.00%, 10/01/25 ...................................................................................... 4,000,000 4,249,080 Jacksonville Guaranteed Entitlement Revenue, Refunding and Improvement, FGIC Insured, 5.00%, 10/01/32 ............................................................................... 1,000,000 1,049,950 Jacksonville Sales Tax Revenue, Better Jacksonville, MBIA Insured, 5.00%, 10/01/30 .............. 1,500,000 1,586,745 Jacksonville Transportation Revenue, MBIA Insured, 5.00%, 10/01/26 .............................. 2,000,000 2,102,740 Jacksonville Water and Sewer Revenue, United Water Project, AMBAC Insured, 6.35%, 8/01/25 ....................................................................................... 1,000,000 1,025,140 Lake Clarke Shores Utility Systems Revenue, Refunding and Improvement, FGIC Insured, 5.80%, 10/01/18 ............................................................................... 1,415,000 1,443,300 Lee County Airport Revenue, Series B, FSA Insured, 5.75%, 10/01/33 .............................. 4,000,000 4,444,360 Lee County IDA Utilities Revenue, Bonita Springs Utilities Project, Refunding, MBIA Insured, 6.05%, 11/01/15 ..................................................................................... 2,000,000 2,099,080 11/01/20 ..................................................................................... 1,500,000 1,564,125 Lynn Haven Capital Improvement Revenue, MBIA Insured, Pre-Refunded, 5.50%, 12/01/32 ............. 2,000,000 2,255,520 Marion County Utility System Revenue, FGIC Insured, 5.00%, 12/01/31 ............................. 1,500,000 1,577,460 Miami Beach Water and Sewer Revenue, AMBAC Insured, 5.00%, 9/01/30 .............................. 3,000,000 3,140,190 Miami-Dade County Aviation Revenue, Miami International Airport, Hub, Series B, FGIC Insured, 5.00%, 10/01/30 ................................................. 3,500,000 3,691,940 Series B, FGIC Insured, 5.75%, 10/01/29 ...................................................... 2,500,000 2,790,600 Nassau County Public Improvement Revenue, MBIA Insured, 5.00%, 5/01/31 .......................... 5,000,000 5,209,950 Ocala Utility System Revenue, Refunding, Series A, FGIC Insured, 5.00%, 10/01/31 ................ 2,000,000 2,134,580 Ocoee Water and Sewer System Revenue, AMBAC Insured, 5.625%, 10/01/26 ........................... 4,220,000 4,447,500 Orange County Health Facilities Authority Revenue, MBIA Insured, 6.00%, 11/01/24 ................ 700,000 701,827 Orange County Public Services Tax Revenue, FGIC Insured, Pre-Refunded, 6.00%, 10/01/24 ...................................................................................... 1,000,000 1,030,960 Orange County School Board COP, AMBAC Insured, 5.50%, 8/01/25 ................................... 1,000,000 1,105,070 Orange County Tourist Development Tax Revenue, AMBAC Insured, 5.50%, 10/01/32 .............................................................................. 2,000,000 2,190,080 Pre-Refunded, 5.50%, 10/01/22 ................................................................ 1,000,000 1,098,160 Pre-Refunded, 5.50%, 10/01/31 ................................................................ 2,500,000 2,745,400 Osceola County HFA, MFHR, Tierra Vista Apartment Project, Series A, FSA Insured, 5.70%, 12/01/17 ...................................................................................... 480,000 490,776 Osceola County Tourist Development Tax Revenue, FGIC Insured, 5.00%, 10/01/32 ................... 3,000,000 3,149,850 Palm Beach County IDR, South Florida Fair Project, AMBAC Insured, 5.50%, 6/01/31 ................ 2,000,000 2,170,380 Palm Beach County Public Improvement Revenue, Convention Center Project, FGIC Insured, Pre-Refunded, 5.125%, 11/01/30 ................................................................ 2,000,000 2,216,620 Palm Beach County School Board COP, Series A, AMBAC Insured, 5.125%, 8/01/24 ............................................................... 5,000,000 5,377,450 FGIC Insured, Pre-Refunded, 6.00%, 8/01/22 ................................................... 3,000,000 3,437,460 Panama City Beach Utility Revenue, Refunding, AMBAC Insured, 5.00%, 6/01/32 ..................... 2,000,000 2,107,700
42 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FLORIDA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) FLORIDA (CONT.) Pembroke Pines Public Improvement Revenue, Series A, AMBAC Insured, 5.00%, 10/01/29 ..................................................... $ 2,000,000 $ 2,128,680 Series B, AMBAC Insured, 5.00%, 10/01/34 ..................................................... 2,000,000 2,120,740 Pinellas County Sewer Revenue, FSA Insured, 5.00%, 10/01/32 ..................................... 3,000,000 3,167,010 Polk County Capital Improvement Revenue, FSA Insured, Pre-Refunded, 5.75%, 12/01/21 ............. 1,000,000 1,140,290 Polk County School Board COP, Series A, FSA Insured, 5.00%, 1/01/26 ............................. 1,000,000 1,050,220 Polk County Utility System Revenue, Series A, FGIC Insured, 5.00%, 10/01/30 ..................................................................................... 1,000,000 1,063,540 10/01/34 ..................................................................................... 2,000,000 2,120,740 St. Augustine Capital Improvement Revenue, Refunding, AMBAC Insured, 5.00%, 10/01/29 ...................................................................................... 1,250,000 1,330,425 St. Lucie West Services District Special Assessment Revenue, Port St. Lucie, Water Management Benefit, senior lien, Refunding, Series A, MBIA Insured, 5.25%, 5/01/25 ............ 5,000,000 5,402,500 St. Lucie West Services District Utility Revenue, senior lien, MBIA Insured, 6.125%, 10/01/32 ...................................................................................... 2,240,000 2,587,939 Tavares Water and Sewer Revenue, AMBAC Insured, 5.50%, 10/01/30 ................................. 1,000,000 1,087,270 ------------ TOTAL LONG TERM INVESTMENTS (COST $138,792,758) ................................................. 150,514,963 ------------ SHORT TERM INVESTMENTS 0.4% BONDS 0.4% FLORIDA 0.4% (b)Jacksonville Health Facilities Authority Hospital Revenue, Baptist Medical Center Project, Daily VRDN and Put, 2.93%, 8/15/21 ........................... 100,000 100,000 Series C, Daily VRDN and Put, 2.93%, 8/15/33 ................................................. 500,000 500,000 ------------ TOTAL SHORT TERM INVESTMENTS (COST $600,000) .................................................... 600,000 ------------ TOTAL INVESTMENTS (COST $139,392,758) 99.4% ..................................................... 151,114,963 OTHER ASSETS, LESS LIABILITIES 0.6% ............................................................. 914,017 ------------ NET ASSETS 100.0% ............................................................................... $152,028,980 ============
See Selected Portfolio Abbreviations on page 180. (a) Security purchased on a when-issued or delayed delivery basis. (b) Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. Quarterly Statements of Investments | See Notes to Statements of Investments. | 43 This page intentionally left blank. 44 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FLORIDA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 98.9% BONDS 92.6% FLORIDA 86.5% Alachua County Health Facilities Authority Revenue, Shands Teaching Hospital, Series A, MBIA Insured, 5.80%, 12/01/26 ............................................................... $10,000,000 $ 10,585,400 Alachua County School Board COP, AMBAC Insured, 5.00%, 7/01/21 ................................ 2,000,000 2,146,140 Bay County Water System Revenue, Refunding, AMBAC Insured, 5.00%, 9/01/29 ..................... 2,000,000 2,135,400 Brevard County Health Facilities Authority Health Care Facilities Revenue, Health First Inc. .. Project, 5.00%, 4/01/26 ..................................................................... 5,000,000 5,244,100 Brevard County Housing Finance Authority SFMR, Multi-County Program, GNMA Secured, 6.40%, 9/01/30 .............................................................................. 175,000 176,132 Brevard County School Board COP, AMBAC Insured, 5.00%, 7/01/26 .............................................................. 10,000,000 10,535,200 Refunding, Series A, AMBAC Insured, 5.40%, 7/01/11 ......................................... 4,415,000 4,911,423 Series A, FGIC Insured, 5.00%, 7/01/30 ..................................................... 4,500,000 4,774,050 Broward County Educational Facilities Authority Revenue, Educational Facilities, Nova Southeastern, Series B, 5.60%, 4/01/29 ...................................................... 3,180,000 3,386,986 Broward County Health Facilities Authority Revenue, Catholic Health Services, Refunding, 5.50%, 8/15/20 .............................................................................. 9,360,000 9,957,262 Broward County HFA, MFHR, Bridgewater Place Apartments Project, Series A, 5.45%, 10/01/34 ............................ 3,000,000 3,082,050 Cross Keys Apartments Project, Series A, 5.80%, 10/01/33 ................................... 1,985,000 2,042,426 Cross Keys Apartments Project, Series A, 5.85%, 4/01/39 .................................... 5,750,000 5,897,315 Stirling Apartments Phase II, Series A, 5.35%, 10/01/29 .................................... 1,000,000 1,019,400 Stirling Apartments Phase II, Series A, 5.40%, 4/01/39 ..................................... 2,000,000 2,027,540 Broward County HFAR, Series D, 6.90%, 6/01/09 ............................................................................. 50,000 50,229 7.375%, 6/01/21 ............................................................................ 245,000 246,149 Broward County Professional Sports Facilities Tax Revenue, Civic Arena Project, Series A, MBIA Insured, 5.75%, 9/01/21 ............................................................................. 5,000,000 5,218,400 5.625%, 9/01/28 ............................................................................ 10,000,000 10,421,700 Broward County School Board COP, Series A, FSA Insured, 5.00%, 7/01/26 .................................................................................... 21,500,000 22,718,190 (a) 7/01/29 ................................................................................. 4,680,000 4,953,312 (a) 7/01/30 ................................................................................. 5,000,000 5,287,850 Cape Canaveral Hospital District Revenue COP, Refunding, 5.25%, 1/01/28 ....................... 3,500,000 3,595,165 Celebration CDD, Special Assessment, MBIA Insured, 6.00%, 5/01/10 ............................................................... 2,110,000 2,117,596 MBIA Insured, 6.10%, 5/01/16 ............................................................... 1,800,000 1,806,570 Series A, MBIA Insured, 5.50%, 5/01/18 ..................................................... 1,460,000 1,537,979 Citrus County Hospital Board Revenue, Citrus Memorial Hospital, Refunding, 6.25%, 8/15/23 ..................................................................................... 10,165,000 10,911,314 Clearwater MFR, Rental Housing, Drew Gardens Projects, Refunding, Series A, FHA Insured, 6.50%, 10/01/25 ............................................................................. 2,525,000 2,530,176 Clermont Water and Sewer Revenue, Refunding, FSA Insured, 5.375%, 12/01/30 .................... 5,000,000 5,373,850 Crossing At Fleming Island CDD, Florida Special Assessment Revenue, Refunding, Series B, MBIA Insured, 5.80%, 5/01/16 ................................................................ 5,980,000 6,729,473 Dade County Aviation Revenue, Miami International Airport, Series B, FSA Insured, 5.125%, 10/01/22 .................................................... 4,750,000 4,911,927 Series C, FSA Insured, 5.125%, 10/01/27 .................................................... 9,550,000 9,962,273
Quarterly Statements of Investments | 45 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FLORIDA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) FLORIDA (CONT.) Dade County Water and Sewer System Revenue, FGIC Insured, 5.75%, 10/01/22 ............................................................................ $ 5,000,000 $ 5,146,050 5.50%, 10/01/25 ............................................................................ 11,500,000 11,824,645 5.25%, 10/01/26 ............................................................................ 13,000,000 13,710,320 Daytona Beach Utility System Revenue, Refunding, Series B, FGIC Insured, 5.00%, 11/15/32 .................................................................................... 3,250,000 3,433,267 Duval County HFA, MFHR, Mortgage, Eagles Point North, Series A, MBIA Insured, 5.60%, 7/01/17 ............................................................................. 1,000,000 1,039,870 5.70%, 7/01/27 ............................................................................. 2,000,000 2,066,400 Enterprise CDD, Water and Sewer Revenue, MBIA Insured, 5.50%, 5/01/26 ......................... 3,000,000 3,255,090 Escambia County Health Facilities Authority Health Facility Revenue, Baptist Hospital and Baptist Manor, 5.125%, 10/01/19 ....................................... 8,750,000 9,014,075 Florida Health Care Facility Loan VHA Project, AMBAC Insured, 5.95%, 7/01/20 ............... 10,000,000 10,153,000 Escambia County Health Facilities Authority Revenue, Ascension Health Credit, Series A-2, AMBAC Insured, Pre-Refunded, 5.75%, 11/15/29 ............................................... 25,000,000 27,885,250 Escambia County HFA, SFMR, Multi County Program, Series A, MBIA Insured, 6.40%, 10/01/30 .................................................................................... 1,390,000 1,401,467 First Florida Governmental Financing Commission Revenue, AMBAC Insured, Pre-Refunded, 5.75%, 7/01/16 .............................................................................. 3,700,000 3,851,700 Florida HFAR, General Mortgage, Refunding, Series A, FHA Insured, 6.40%, 6/01/24 ......................... 240,000 241,226 Homeowner Mortgage, Series 1, MBIA Insured, 5.625%, 7/01/17 ................................ 3,020,000 3,153,907 MFH, Driftwood Terrace Project, Series I, 7.65%, 12/20/31 .................................. 3,295,000 3,309,103 Reserve at Kanapaha, Series G, AMBAC Insured, 5.70%, 7/01/37 ............................... 5,000,000 5,157,200 Reserve at Northshore, Series H, AMBAC Insured, 5.70%, 5/01/37 ............................. 2,000,000 2,067,480 Riverfront Apartments, Series A, AMBAC Insured, 6.25%, 4/01/37 ............................. 1,300,000 1,357,304 Florida HFC Revenue, Brenwood Trace Apartments, Series E-1, FSA Insured, 5.80%, 12/01/38 ........................ 4,965,000 5,213,449 Deer Meadows Apartments, Series R, FNMA Insured, 6.00%, 5/01/32 ............................ 3,505,000 3,729,986 Homeowner Mortgage, Series 4, FSA Insured, 6.25%, 7/01/22 .................................. 2,405,000 2,462,720 Housing Brenwood Trace Apartments, Series E-1, FSA Insured, 5.65%, 6/01/19 ................. 1,245,000 1,315,355 Housing-Waverly Apartments, Series C-1, FSA Insured, 6.50%, 7/01/40 ........................ 3,000,000 3,226,980 Florida Intergovernmental Finance Commission Capital Revenue, Series C-1, AMBAC Insured, 5.00%, 2/01/21 .............................................................................. 1,355,000 1,436,341 Florida Municipal Loan Council Revenue, Series B, MBIA Insured, 5.75%, 11/01/29 ............... 1,500,000 1,678,395 Florida Ports Financing Commission Revenue, State Transportation Trust Fund-Intermodal Program, FGIC Insured, 5.50%, 10/01/23 ...................................................... 7,000,000 7,532,770 Florida State Board of Education Capital Outlay GO, Public Education, Refunding, Series D, 5.75%, 6/01/22 ........................................................ 25,900,000 28,867,622 Refunding, Series D, 6.00%, 6/01/23 ........................................................ 15,000,000 18,866,850 Refunding, Series G, FGIC Insured, 5.00%, 6/01/31 .......................................... 5,000,000 5,272,700 Series B, Pre-Refunded, 5.875%, 6/01/24 .................................................... 5,000,000 5,050,000 Series C, FGIC Insured, 5.75%, 6/01/29 ..................................................... 5,000,000 5,659,050 Series F, FGIC Insured, Pre-Refunded, 5.50%, 6/01/26 ....................................... 10,000,000 10,362,200 Florida State Board of Education GO, Series F, MBIA Insured, 5.00%, 6/01/28 ................... 20,000,000 21,174,400 Florida State Board of Education Lottery Revenue, Series A, FGIC Insured, 5.00%, 7/01/20 ..................................................................................... 7,000,000 7,606,760
46 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FLORIDA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) FLORIDA (CONT.) Florida State Board of Education Public Education GO, Refunding, Series C, AMBAC Insured, 5.00%, 6/01/34 .............................................................................. $15,000,000 $ 15,958,650 Florida State Board Regent Housing Revenue, University of Central Florida, AMBAC Insured, 5.75%, 10/01/29 .............................. 8,650,000 9,587,573 University of Florida, FGIC Insured, 5.75%, 7/01/25 ........................................ 3,400,000 3,788,178 University of Florida, FGIC Insured, 5.25%, 7/01/30 ........................................ 2,060,000 2,196,990 Florida State Department Environmental Protection Preservation Revenue, Florida Forever, Series A, MBIA Insured, 5.00%, 7/01/21 ...................................................... 4,000,000 4,287,320 Florida State Department of General Services Division Facilities Management Revenue, Florida Facilities Pool, Series B, FSA Insured, 5.50%, 9/01/28 .............................. 10,000,000 10,880,600 Florida State Department of Transportation GO, Right of Way, Series A, 4.75%, 7/01/24 ......... 6,000,000 6,306,900 Florida State Mid-Bay Bridge Authority Revenue, Exchangeable, 6.05%, 10/01/22 .............................................................. 7,000,000 7,362,180 Exchangeable, Refunding, Series D, 6.10%, 10/01/22 ......................................... 13,695,000 14,364,822 Exchangeable, Series A, 5.95%, 10/01/13 .................................................... 12,030,000 12,984,460 Exchangeable, Series D, ETM, 6.10%, 10/01/22 ............................................... 3,545,000 4,342,448 Series A, ETM, 6.875%, 10/01/22 ............................................................ 6,000,000 8,002,980 Florida State Municipal Power Agency Revenue, Stanton II Project, Refunding, AMBAC Insured, 5.00%, 10/01/26 .............................................................. 5,000,000 5,291,800 Florida State Turnpike Authority Turnpike Revenue, Department of Transportation, Series A, FGIC Insured, Pre-Refunded, 5.50%, 7/01/21 ....................................... 5,000,000 5,061,500 Series B, 5.00%, 7/01/30 ................................................................... 3,455,000 3,598,037 Fort Pierce Utilities Authority Revenue, AMBAC Insured, 5.00%, 10/01/27 ....................... 7,000,000 7,367,220 Gainesville Utilities Systems Revenue, Series A, 5.20%, 10/01/26 .............................. 7,590,000 7,863,240 Gateway Services District Revenue, Transportation Roadway Service Charges, 8.75%, 5/01/14 ..................................................................................... 2,425,000 2,468,965 Hialeah Housing Authority Revenue, Affordable Housing Program, Refunding, GNMA Secured, 5.30%, 12/20/18 ............................................................................. 1,240,000 1,317,500 Highlands County Health Facilities Authority Revenue, Adventist Health Systems, 5.25%, 11/15/20 ............................................................................ 10,000,000 10,391,000 Series A, 6.00%, 11/15/31 .................................................................. 16,000,000 17,544,480 Hillsborough County Assessment Revenue, Capacity Assessment Special, FSA Insured, 5.125%, 3/01/20 ............................................................................. 1,000,000 1,082,020 Hillsborough County Aviation Authority Revenue, Tampa International Airport, Series B, FGIC Insured, 5.875%, 10/01/23 .............................................................. 5,000,000 5,296,550 Hillsborough County HFA Mortgage Revenue, SF, Series A, GNMA Secured, 5.875%, 4/01/30 ..................................................................................... 1,920,000 1,985,299 Hillsborough County IDA, PCR, Tampa Electric Co. Project, Refunding, 5.50%, 10/01/23 .......... 16,000,000 16,643,840 Hillsborough County IDAR, Tampa General Hospital Project, Refunding, Series B, 5.40%, 10/01/28 .................................................................................... 7,000,000 7,383,320 Hillsborough County School Board COP, Master Lease Program, Series A, MBIA Insured, 5.375%, 7/01/21 .............................. 5,000,000 5,352,450 Master Lease Program, Series A, MBIA Insured, 5.25%, 7/01/22 ............................... 5,000,000 5,319,100 MBIA Insured, 5.00%, 7/01/26 ............................................................... 8,330,000 8,915,099 MBIA Insured, 5.375%, 7/01/26 .............................................................. 8,000,000 8,720,720 MBIA Insured, 5.00%, 7/01/29 ............................................................... 10,000,000 10,507,900 Series B, MBIA Insured, 5.125%, 7/01/26 .................................................... 5,000,000 5,334,400
Quarterly Statements of Investments | 47 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FLORIDA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) FLORIDA (CONT.) Indian River County Hospital District Revenue, Refunding, FSA Insured, 5.70%, 10/01/15 .................................................................................... $ 1,000,000 $ 1,053,660 Jacksonville Capital Improvement Revenue, Refunding, Series C, AMBAC Insured, 5.00%, 10/01/25 ........................................ 3,460,000 3,675,454 Series A, AMBAC Insured, 5.00%, 10/01/30 ................................................... 10,000,000 10,518,900 Jacksonville Capital Improvement Revenue Certificates, Gator Bowl Project, AMBAC Insured, 5.875%, 10/01/25 ............................................................................ 5,000,000 5,103,200 Jacksonville Electric Authority Revenue, Water and Sewer, Series B, FGIC Insured, 5.40%, 10/01/20 .................................................................................... 3,000,000 3,120,150 Jacksonville Guaranteed Entitlement Revenue, Refunding and Improvement, FGIC Insured, 5.00%, 10/01/32 ............................................................................. 17,250,000 18,111,637 Jacksonville Sales Tax Revenue, AMBAC Insured, 5.00%, 10/01/23 ................................ 5,000,000 5,308,400 Jacksonville Transportation Revenue, MBIA Insured, 5.25%, 10/01/29 ............................................................................ 17,955,000 19,374,702 5.00%, 10/01/31 ............................................................................ 25,000,000 26,114,000 Jacksonville Water and Sewer System Revenue, Refunding, Series A, MBIA Insured, 5.00%, 10/01/25 .................................................................................... 1,500,000 1,601,295 Kissimmee Water and Sewer Revenue, Refunding, AMBAC Insured, ETM, 6.00%, 10/01/15 .................................................................................... 5,000,000 5,019,650 Lakeland Hospital System Revenue, Lakeland Regional Health System, 5.75%, 11/15/27 ............................................................................ 6,925,000 7,540,217 5.50%, 11/15/32 ............................................................................ 12,070,000 12,927,815 Series A, MBIA Insured, 5.50%, 11/15/26 .................................................... 10,000,000 10,740,300 Lee County Airport Revenue, Series A, FSA Insured, 6.00%, 10/01/32 ............................ 11,405,000 12,621,913 Lee County Hospital Board of Directors Hospital Revenue, Lee Memorial Health System, Series A, MBIA Insured, 5.875%, 4/01/24 ..................................................... 18,000,000 19,167,120 Lee County IDA, Health Care Facilities Revenue, Shell Point Village Project, Refunding, Series A, 5.50%, 11/15/29 ....................................................... 4,000,000 4,030,080 Series A, 5.50%, 11/15/21 .................................................................. 7,500,000 7,634,025 Lee County School Board COP, Series A, FSA Insured, 5.00%, 8/01/28 ............................ 7,500,000 7,985,325 Lee County Transportation Facilities Revenue, MBIA Insured, 5.75%, 10/01/27 ................... 2,000,000 2,060,300 Lessburg Hospital Revenue, Leesburg Regional Medical Center Project, 5.50%, 7/01/32 ........... 4,150,000 4,340,153 Manatee County School Board COP, MBIA Insured, Pre-Refunded, 6.125%, 7/01/21 .................. 5,575,000 5,879,730 Marion County Utility System Revenue, FGIC Insured, 5.00%, 12/01/31 .............................................................. 5,000,000 5,258,200 MBIA Insured, 5.00%, 12/01/28 .............................................................. 5,000,000 5,309,000 Melbourne Water and Sewer Revenue, FGIC Insured, 5.25%, 10/01/30 .............................. 6,000,000 6,413,880 Miami Beach Special Obligation, Subordinated, FGIC Insured, ETM, 7.375%, 12/01/08 ............. 1,140,000 1,167,075 Miami Beach Water and Sewer Revenue, AMBAC Insured, 5.00%, 9/01/30 ............................ 7,000,000 7,327,110 Miami-Dade County Aviation Revenue, Miami International Airport, FGIC Insured, 5.375%, 10/01/27 ............................................................. 5,000,000 5,331,250 FGIC Insured, 5.375%, 10/01/32 ............................................................. 5,000,000 5,292,600 Hub, Series B, FGIC Insured, 5.00%, 10/01/30 ............................................... 4,440,000 4,683,490 Miami-Dade County Educational Facilities Authority Revenue, Series A, AMBAC Insured, 5.75%, 4/01/29 .............................................................................. 10,000,000 11,141,600
48 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FLORIDA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) FLORIDA (CONT.) Miami-Dade County HFA, MFHR, Cedar Grove Apartments, FSA Insured, 5.50%, 8/01/27 .................................. $ 2,015,000 $ 2,089,313 MFMR, Villa Esperanza Apartments Project, 5.25%, 10/01/19 .................................. 430,000 441,206 MFMR, Villa Esperanza Apartments Project, 5.40%, 10/01/33 .................................. 1,500,000 1,534,680 Miami-Dade County IDAR, Airis Miami ll LLC Project, AMBAC Insured, 6.00%, 10/15/25 ............ 4,500,000 4,986,495 Miami-Dade County School Board COP, Series A, MBIA Insured, Pre-Refunded, 5.00%, 5/01/31 .................................................................................... 5,000,000 5,499,800 Miami-Dade County Special Obligation Revenue, Juvenile Courthouse Project, Series A, AMBAC Insured, 5.00%, 4/01/35 ............................................................... 5,000,000 5,260,800 North Broward Hospital District Revenue, Improvement, 6.00%, 1/15/31 ................................................................ 25,530,000 27,438,368 Refunding and Improvement, MBIA Insured, 5.375%, 1/15/24 ................................... 10,000,000 10,416,900 Refunding and Improvement, MBIA Insured, 5.75%, 1/15/27 .................................... 19,370,000 20,306,540 North Miami Health Facilities Authority Revenue, Catholic Health Services Obligation Group, 6.00%, 8/15/16 .................................................................................... 2,000,000 2,085,380 8/15/24 .................................................................................... 1,750,000 1,814,208 Orange County Health Facilities Authority Revenue, Adventist Health System, 6.375%, 11/15/20 .................................................. 3,000,000 3,376,170 Adventist Health System, 6.25%, 11/15/24 ................................................... 5,500,000 6,237,330 Adventist Health System, 6.50%, 11/15/30 ................................................... 10,750,000 11,967,545 Adventist Health System, 5.625%, 11/15/32 .................................................. 15,000,000 16,165,350 Orlando Regional Healthcare System, 6.00%, 12/01/29 ........................................ 6,000,000 6,680,100 Orlando Regional Healthcare System, Series B, MBIA Insured, 6.00%, 11/01/24 ................ 285,000 285,744 Orlando Regional Healthcare System, Series E, 6.00%, 10/01/26 .............................. 12,000,000 12,906,600 Orange County HFA, Homeowner Revenue, Series C-1, GNMA Secured, 5.70%, 9/01/26 ................ 1,110,000 1,133,810 Orange County Public Services Tax Revenue, FGIC Insured, Pre-Refunded, 6.00%, 10/01/24 .................................................................................... 5,050,000 5,206,348 Orange County School Board COP, Series A, MBIA Insured, 5.00%, 8/01/27 ........................ 12,000,000 12,618,120 Orange County Tourist Development Tax Revenue, AMBAC Insured, 5.50%, 10/01/31 ............................................................. 10,500,000 11,530,680 AMBAC Insured, 5.50%, 10/01/32 ............................................................. 20,000,000 21,900,800 Refunding, AMBAC Insured, 5.00%, 10/01/31 .................................................. 5,000,000 5,332,100 Refunding, MBIA Insured, 5.125%, 10/01/20 .................................................. 10,000,000 10,497,900 Subordinate, AMBAC Insured, 5.125%, 10/01/25 ............................................... 5,500,000 5,896,770 Subordinate, AMBAC Insured, 5.125%, 10/01/30 ............................................... 10,000,000 10,592,300 Orlando and Orange County Expressway Authority Expressway Revenue, junior lien, FGIC Insured, 5.00%, 7/01/28 .................................................. 8,000,000 8,290,640 senior lien, AMBAC Insured, ETM, 7.625%, 7/01/18 ........................................... 265,000 269,627 Series B, AMBAC Insured, 5.00%, 7/01/35 .................................................... 9,185,000 9,670,795 Osceola County IDAR, Community Provider Pooled Loan Program, Series A, FSA Insured, 7.75%, 7/01/10 ...................................................... 1,896,000 1,904,058 Series C, FSA Insured, 7.60%, 7/01/10 ...................................................... 585,000 587,422 Osceola County Sales Tax Revenue, FSA Insured, 5.00%, 4/01/24 ................................. 10,000,000 10,586,900 Osceola County Tourist Development Tax Revenue, FGIC Insured, 5.00%, 10/01/32 ................. 10,000,000 10,499,500 Palm Beach County Financing Authority MFR, Housing Windsor Park Apartment Project, Series A, 5.90%, 6/01/38 .................................................................... 995,000 1,036,820
Quarterly Statements of Investments | 49 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FLORIDA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) FLORIDA (CONT.) Palm Beach County HFAR, Acts Retirement-Life Communities, 5.125%, 11/15/29 .................... $ 3,650,000 $ 3,692,231 Palm Beach County IDR, Lourdes-Noreen McKeen Residence, Geriatric Care Inc. Project, Pre-Refunded, 6.55%, 12/01/16 .................................................................................. 1,755,000 1,882,448 Lourdes-Noreen McKeen Residence, Geriatric Care Inc. Project, Pre-Refunded, 6.625%, 12/01/26 .................................................................................. 4,000,000 4,294,840 South Florida Fair Project, AMBAC Insured, 5.50%, 6/01/31 .................................. 5,000,000 5,425,950 Palm Beach County Public Improvement Revenue, Convention Center Project, FGIC Insured, Pre-Refunded, 5.125%, 11/01/30 .............................................................. 10,000,000 11,083,100 Palm Beach County School Board COP, Series A, AMBAC Insured, 5.125%, 8/01/24 ................................................... 15,000,000 16,132,350 Series A, FGIC Insured, Pre-Refunded, 6.00%, 8/01/22 ....................................... 5,000,000 5,729,100 Series C, FSA Insured, 5.00%, 8/01/27 ...................................................... 10,000,000 10,515,100 Panama City Beach Utility Revenue, Refunding, AMBAC Insured, 5.00%, 6/01/27 .................................................................................... 4,450,000 4,717,534 6/01/32 .................................................................................... 2,795,000 2,945,511 Pensacola Airport Revenue, Series A, MBIA Insured, 5.75%, 10/01/27 ............................ 5,615,000 6,043,031 Pinellas County Health Facilities Authority Revenue, Baycare Health System, FSA Insured, 5.00%, 11/15/30 ............................................................................. 11,500,000 11,968,740 Polk County Capital Improvement Revenue Special Tax, FSA Insured, Pre-Refunded, 5.75%, 12/01/21 .................................................................................... 2,350,000 2,679,682 Polk County IDAR, Solid Waste Disposal Facility, Tampa Electric Co. Project, 5.85%, 12/01/30 .................................................................................... 15,000,000 15,269,550 Polk County School Board COP, Series A, FSA Insured, 5.00%, 1/01/26 ........................... 4,000,000 4,200,880 Polk County Utility System Revenue, Series A, FGIC Insured, 5.00%, 10/01/34 ................... 1,000,000 1,060,370 Port Everglades Authority Port Improvement Revenue, Series 1986, ETM, 7.50%, 11/01/06 .................................................................................... 265,000 275,401 Sarasota County Solid Waste System Revenue, AMBAC Insured, 5.50%, 10/01/16 .................... 5,250,000 5,524,523 Sarasota County Utilities System Revenue, FGIC Insured, 5.75%, 10/01/27 .............................................................. 18,000,000 19,335,420 Refunding, Series A, FGIC Insured, 5.25%, 10/01/25 ......................................... 5,280,000 5,528,424 Series A, FGIC Insured, Pre-Refunded, 5.25%, 10/01/25 ...................................... 3,720,000 3,910,538 South Broward Hospital District Revenue, 5.60%, 5/01/27 ............................................................................. 5,000,000 5,397,200 5.625%, 5/01/32 ............................................................................ 16,250,000 17,524,650 St. Lucie West Services District Utility Revenue, senior lien, MBIA Insured, 6.125%, 10/01/32 .................................................................................... 10,000,000 11,553,300 Sunrise Lakes Recreation District GO, Phase 4, Refunding, AMBAC Insured, 5.25%, 8/01/24 ................................................... 4,320,000 4,543,646 Series A, Pre-Refunded, 6.75%, 8/01/15 ..................................................... 3,080,000 3,162,082 Series A, Pre-Refunded, 6.75%, 8/01/24 ..................................................... 6,120,000 6,283,098 Sunrise Utilities System Revenue, Refunding, AMBAC Insured, 5.20%, 10/01/22 ................... 2,550,000 2,900,421 Tamarac Sales Tax Revenue, FGIC Insured, 5.00%, 4/01/22 ....................................... 2,490,000 2,657,278 Tampa Bay Water Utility System Revenue, FGIC Insured, Pre-Refunded, 5.75%, 10/01/29 ................................................ 15,000,000 17,202,450 Series B, FGIC Insured, 5.00%, 10/01/31 .................................................... 10,000,000 10,445,600
50 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FLORIDA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) FLORIDA (CONT.) Tampa Sports Authority Revenue, Guaranteed Package, Tampa Bay Arena Project, MBIA Insured, 6.00%, 10/01/15 ................. $ 1,000,000 $ 1,206,380 Guaranteed Package, Tampa Bay Arena Project, MBIA Insured, 6.05%, 10/01/20 ................. 1,715,000 2,150,936 Guaranteed Package, Tampa Bay Arena Project, MBIA Insured, 6.10%, 10/01/26 ................. 2,695,000 3,460,730 Sales Tax Payments, Stadium Project, MBIA Insured, 5.25%, 1/01/27 .......................... 5,860,000 6,098,971 Tampa Water and Sewer Revenue, sub. lien, Series A, AMBAC Insured, 7.25%, 10/01/16 ............ 1,330,000 1,348,939 Tampa-Hillsborough County Expressway Authority Revenue, AMBAC Insured, 5.00%, 7/01/22 ..................................................................................... 5,000,000 5,173,000 Viera East CDD, Revenue, Special Assessment, Series B, ETM, 6.75%, 5/01/14 ................................. 5,855,000 6,749,761 Special Assessment, Refunding, 7.00%, 5/01/26 .............................................. 6,945,000 7,628,041 Special Assessment, Water Management, Refunding, Series A, 6.50%, 5/01/22 .................. 11,340,000 11,681,221 Special Assessment, Water Management, Series B, 6.50%, 5/01/22 ............................. 4,580,000 4,717,812 Water and Sewer Revenue, 6.75%, 5/01/09 .................................................... 1,990,000 2,053,700 Village Center CDD, Recreational Revenue, Series A, MBIA Insured, 5.20%, 11/01/25 ............. 10,000,000 10,761,700 Volusia County Educational Facility Authority Revenue, Educational Facilities, Embry Riddle University, Refunding, Series B, AMBAC Insured, 5.25%, 10/15/22 ............... 2,000,000 2,152,640 Stetson University Inc. Project, AMBAC Insured, 5.25%, 6/01/29 ............................. 5,000,000 5,345,800 Volusia County School Board COP, Master Lease Program, FSA Insured, 5.50%, 8/01/24 ............ 5,000,000 5,500,600 West Lake CDD, Special Assessment Revenue, MBIA Insured, 5.75%, 5/01/17 ....................... 1,870,000 2,058,720 West Orange Healthcare District Revenue, Series A, 5.65%, 2/01/22 ............................. 10,850,000 11,534,310 West Palm Beach Utility System Revenue, FGIC Insured, 5.50%, 10/01/29 ......................... 5,000,000 5,343,000 -------------- 1,473,073,509 -------------- U. S. TERRITORIES 6.1% Puerto Rico Commonwealth GO, Public Improvement, Series A, 5.00%, 7/01/25 .................................................................................... 5,000,000 5,272,150 7/01/29 .................................................................................... 10,000,000 10,482,900 7/01/33 .................................................................................... 13,000,000 13,569,920 Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Series A, MBIA Insured, 5.00%, 7/01/38 ..................................................... 12,800,000 13,265,024 Series B, Pre-Refunded, 6.00%, 7/01/39 ..................................................... 5,000,000 5,731,750 Series D, 5.375%, 7/01/36 .................................................................. 5,000,000 5,391,250 Series G, 5.00%, 7/01/33 ................................................................... 5,000,000 5,222,650 Puerto Rico Electric Power Authority Power Revenue, Series II, 5.25%, 7/01/31 ................. 15,000,000 16,095,600 Puerto Rico Industrial Tourist Educational Medical and Environmental Control Facilities Revenue, Cogeneration Facility, AES Puerto Rico Project, 6.625%, 6/01/26 ..................... 5,900,000 6,477,492 Puerto Rico PBA Revenue, Guaranteed, Government Facilities, Series D, 5.375%, 7/01/33 .................................................................. 1,210,000 1,305,445 Series D, Pre-Refunded, 5.375%, 7/01/33 .................................................... 3,790,000 4,257,231 Series I, 5.00%, 7/01/36 ................................................................... 5,000,000 5,245,250 Virgin Islands PFAR, Gross Receipts Taxes Loan Note, Radian Insured, 5.00%, 10/01/33 .......... 10,000,000 10,501,300 -------------- 102,817,962 -------------- TOTAL BONDS (COST $1,449,791,642) ............................................................. 1,575,891,471 --------------
Quarterly Statements of Investments | 51 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FLORIDA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) ZERO COUPON BONDS 6.3% FLORIDA 6.3% Broward County HFAR, SFMR, Refunding, Series B, FHA Insured, 4/01/29 .......................... $ 990,000 $ 192,189 Broward County Water and Sewer Utility Revenue, Refunding, Series A, AMBAC Insured, 10/01/08 .................................................................................... 2,815,000 2,351,257 Dade County Guaranteed Entitlement Revenue, Capital Appreciation, AMBAC Insured, Pre-Refunded, 8/01/18 ....................................................................... 17,020,000 6,754,898 Florida HFC Revenue, Capital Appreciation, Homeowner Mortgage, Series 4, FSA Insured, 7/01/30 ................... 4,185,000 759,033 Deferred Interest, Homeowner Mortgage, Series 1, MBIA Insured, 7/01/17 ..................... 2,115,000 1,133,069 Deferred Interest, Homeowner Mortgage, Series 2, MBIA Insured, 1/01/29 ..................... 37,600,000 10,202,760 Florida State Mid-Bay Bridge Authority Revenue, Series A, AMBAC Insured, 10/01/25 ................................................................................... 9,845,000 3,954,244 10/01/26 ................................................................................... 2,500,000 951,100 Fort Pierce Utilities Authority Revenue, Capital Appreciation, Series B, AMBAC Insured, 10/01/20 ................................................................................... 3,090,000 1,592,895 10/01/21 ................................................................................... 2,585,000 1,264,013 10/01/22 ................................................................................... 3,090,000 1,436,417 10/01/23 ................................................................................... 3,060,000 1,351,235 10/01/24 ................................................................................... 2,560,000 1,072,998 Hillsborough County HFA Mortgage Revenue, SF, Series A, GNMA Secured, 4/01/32 ................. 1,215,000 236,305 Lakeland Electric and Water Revenue, Capital Appreciation, ETM, 10/01/14 ...................... 5,770,000 4,020,767 Melbourne Water and Sewer Revenue, Capital Appreciation, FGIC Insured, ETM, 10/01/26 ................................................................ 1,500,000 569,835 Refunding, Series B, FGIC Insured, 10/01/22 ................................................ 1,785,000 829,775 Refunding, Series B, FGIC Insured, 10/01/26 ................................................ 4,500,000 1,691,775 Miami-Dade County Special Obligation, sub. lien, Refunding, Series A, MBIA Insured, 10/01/25 ..................................... 22,365,000 7,811,424 Sub Series B, MBIA Insured, 10/01/36 ....................................................... 5,635,000 1,038,080 Sub Series C, MBIA Insured, 10/01/28 ....................................................... 8,305,000 2,408,118 Pinellas County HFA, SFHMR, Multi County B-1, GNMA Secured, 9/01/31 ........................... 885,000 157,017 Port Everglades Authority Port Improvement Revenue, Capital Appreciation, 9/01/10 .................................................................................... 24,525,000 20,831,535 ETM, 9/01/10 ............................................................................... 25,475,000 20,405,475 Port Saint Lucie Utility Revenue, MBIA Insured, 9/01/29 ....................................... 20,000,000 5,607,400 Sarasota Special Obligated Revenue, Refunding, AMBAC Insured, 11/01/09 ................................................................................... 1,365,000 1,173,313 11/01/12 ................................................................................... 1,780,000 1,338,863 11/01/15 ................................................................................... 2,180,000 1,427,268 St. Johns County Water and Sewer Revenue, Capital Appreciation, AMBAC Insured, 6/01/23 .................................................................................... 4,255,000 1,750,209 6/01/24 .................................................................................... 1,500,000 580,890 6/01/25 .................................................................................... 2,130,000 777,727 ETM, 6/01/22 ............................................................................... 4,000,000 1,756,000 -------------- TOTAL ZERO COUPON BONDS (COST $94,274,993) .................................................... 107,427,884 -------------- TOTAL LONG TERM INVESTMENTS (COST $1,544,066,635) ............................................. 1,683,319,355 --------------
52 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FLORIDA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM INVESTMENTS 0.5% BONDS 0.5% FLORIDA 0.5% (b)Jacksonville Health Facilities Authority Hospital Revenue, Baptist Medical Center Project, Daily VRDN and Put, 2.93%, 8/15/21 ......................... $ 6,135,000 $ 6,135,000 Genesis Rehabilitation Hospital, Refunding, Daily VRDN and Put, 2.98%, 5/01/21 ............. 300,000 300,000 Series C, Daily VRDN and Put, 2.93%, 8/15/33 ............................................... 1,095,000 1,095,000 (b)Nassau County Solid Waste System Revenue, Refunding, Weekly VRDN and Put, 2.97%, 7/01/13 ..................................................................................... 455,000 455,000 (b)Orange County School Board COP, Series B, AMBAC Insured, Daily VRDN and Put, 2.97%, 8/01/25 .......................................... 305,000 305,000 MBIA Insured, Daily VRDN and Put, 2.97%, 8/01/27 ........................................... 150,000 150,000 (b)Sarasota County Revenue, Sarasota Family YMCA Project, Weekly VRDN and Put, 2.97%, 10/01/21 .................................................................................... 355,000 355,000 -------------- TOTAL SHORT TERM INVESTMENTS (COST $8,795,000) ................................................ 8,795,000 -------------- TOTAL INVESTMENTS (COST $1,552,861,635) 99.4% ................................................. 1,692,114,355 OTHER ASSETS, LESS LIABILITIES 0.6% ........................................................... 10,251,663 -------------- NET ASSETS 100.0% ............................................................................. $1,702,366,018 ==============
See Selected Portfolio Abbreviations on page 180. (a) Security purchased on a when-issued or delayed delivery basis. (b) Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. Quarterly Statements of Investments | See Notes to Statements of Investments. | 53 This page intentionally left blank. 54 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN GEORGIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 98.9% BONDS 98.0% GEORGIA 96.3% Atlanta Airport Facilities Revenue, General, Series A, FGIC Insured, Pre-Refunded, 5.50%, 1/01/26 ................................ $ 5,000,000 $ 5,558,550 Refunding, Series A, FGIC Insured, Pre-Refunded, 5.60%, 1/01/30 .............................. 5,000,000 5,579,750 Atlanta Airport Passenger Facility Charge Revenue, General, sub. lien, Series C, FSA Insured, 5.00%, 1/01/33 ................................................................................ 5,000,000 5,233,800 Atlanta and Fulton County Recreation Authority Revenue, AMBAC Insured, 5.50%, 12/01/20 ...................................................................................... 1,500,000 1,658,790 Atlanta Development Authority Revenue, Yamacraw Design Center Project, Series A, MBIA Insured, 5.125%, 1/01/23 ................................................................. 4,150,000 4,442,326 Atlanta Urban Residential Finance Authority MFHR, Defoors Ferry Manor Project, 5.90%, 10/01/18 ................................................. 1,700,000 1,764,736 Fulton Cotton Mill, GNMA Secured, 6.00%, 5/20/17 ............................................. 1,040,000 1,088,443 Fulton Cotton Mill, GNMA Secured, 6.125%, 5/20/27 ............................................ 1,560,000 1,625,192 Atlanta Water and Wastewater Revenue, Refunding, Series A, MBIA Insured, 5.00%, 11/01/33 ...................................................................................... 8,000,000 8,370,400 Augusta Water and Sewer Revenue, FSA Insured, 5.00%, 10/01/32 ................................... 5,000,000 5,246,550 Baldwin County Hospital Authority Revenue, Oconee Regional Medical Center, 5.25%, 12/01/22 .............................................................................. 2,500,000 2,268,400 5.375%, 12/01/28 ............................................................................. 2,000,000 1,783,680 Brunswick and Glynn County Development Authority Revenue, Georgia Pacific Project, Refunding, 5.55%, 3/01/26 ..................................................................... 2,000,000 2,006,420 Bulloch County Development Authority Lease Revenue, Georgia Southern University, XLCA Insured, 5.00%, 8/01/27 .................................................................. 5,000,000 5,332,650 Cherokee County Water and Sewage Authority Revenue, MBIA Insured, 6.90%, 8/01/18 ................ 10,000 10,056 Clayton County Development Authority Revenue, Gateway Village Project, Series A, 6.00%, 8/01/23 ....................................................................................... 3,500,000 3,941,595 Clayton County Housing Authority MFHR, Southlake Cove Project A, GNMA Secured, 5.60%, 12/20/24 ...................................... 1,990,000 2,178,453 Vineyard Pointe, Series A, GNMA Secured, 5.50%, 10/20/32 ..................................... 1,475,000 1,564,754 Clayton County MFHR, Pointe Clear Apartments Project, FSA Insured, 5.70%, 7/01/23 ............... 995,000 1,029,258 Cobb County Development Authority Parking Revenue, Kennesaw State University Foundation Inc. Project, MBIA Insured, 5.00%, 7/15/29 .................................................... 2,000,000 2,129,420 Cobb County Kennestone Hospital Authority Revenue, Series A, MBIA Insured, ETM, 7.75%, 2/01/07 ....................................................................................... 35,000 36,485 College Park Business and IDAR, Civic Center Project, AMBAC Insured, 5.75%, 9/01/26 ............. 2,000,000 2,243,020 Columbia County GO, Courthouse/Detention Center Projects, 5.00%, 2/01/24 ........................ 2,000,000 2,095,760 Columbia County Water and Sewer Revenue, FSA Insured, 5.00%, 6/01/24 ............................ 1,130,000 1,212,015 Columbus Water and Sewage Revenue, Refunding, MBIA Insured, 5.00%, 5/01/25 ...................... 1,000,000 1,071,210 De Kalb County Housing Authority MFHR, Castaway Apartments, Series A, GNMA Insured, 5.40%, 2/20/29 ................................................................................ 1,980,000 2,091,474 De Kalb County Public Safety and Judicial Facilities Authority Revenue, Public Safety and Judicial Facility Project, 5.00%, 12/01/29 .................................................... 2,000,000 2,135,520 De Kalb County Water and Sewer Revenue, 5.125%, 10/01/31 ........................................ 6,500,000 6,893,575 Fayette County PFAR, Criminal Justice Center Project, Refunding, 5.00%, 6/01/26 ................. 3,000,000 3,172,080 Forsyth County School District GO, MBIA Insured, 5.00%, 2/01/25 ................................. 3,000,000 3,228,330 Forsyth County School District GO, Pre-Refunded, 5.75%, 2/01/19 ................................. 1,500,000 1,695,810
Quarterly Statements of Investments | 55 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN GEORGIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) GEORGIA (CONT.) Fulton County Development Authority Revenue, Georgia Tech Foundation, Sac II Project, Series A, 5.25%, 11/01/30 ........................... $ 5,000,000 $ 5,364,800 Georgia Tech Foundation Funding, Series A, 5.00%, 11/01/31 ................................... 3,000,000 3,148,080 Molecular Science Building Project, MBIA Insured, 5.00%, 5/01/25 ............................. 2,240,000 2,399,510 Fulton County Water and Sewer Revenue, FGIC Insured, 5.00%, 1/01/30 ............................. 2,500,000 2,653,825 Gainesville and Hall County Hospital Authority Revenue Anticipation Certificates, Northeast Health System Inc. Project, Refunding, 5.50%, 5/15/31 ......................................... 2,500,000 2,615,900 Georgia Municipal Association Inc. COP, City Court Atlanta Project, AMBAC Insured, 5.25%, 12/01/26 ...................................................................................... 2,000,000 2,175,320 Georgia Municipal Electric Authority Power Revenue, Series W, ETM, 6.60%, 1/01/18 .......................................................................... 45,000 54,476 6.60%, 1/01/18 ............................................................................... 955,000 1,167,106 Georgia Municipal Gas Authority Gas Revenue, City of Toccoa Project, AMBAC Insured, 5.00%, 6/01/24 ........................................................................................ 1,000,000 1,063,010 Georgia Private Colleges and Universities Authority Student Housing Revenue, Mercer Housing Corp. Project, Series A, 6.00%, 6/01/24 ........................................................ 2,550,000 2,672,655 Georgia State HFAR, MF, Club Candlewood Project, FSA Insured, Pre-Refunded, 7.15%, 1/01/25 ....................... 1,000,000 1,063,770 MF, Lake Vista Apartments Project, Series A, FSA Insured, 5.95%, 1/01/27 ..................... 1,000,000 1,038,580 SF, Sub Series C-2, 5.95%, 12/01/31 .......................................................... 4,435,000 4,613,198 SFM, Sub Series B-2, 5.85%, 12/01/28 ......................................................... 2,205,000 2,276,927 Gwinnett County Development Authority COP, Gwinnett County Public Schools Project, MBIA Insured, 5.00%, 1/01/24 ................................................................... 8,500,000 9,092,705 Gwinnett County Hospital Authority Revenue, Anticipation Certificates, Gwinnett Hospital Systems Inc. Project, Series B, MBIA Insured, 5.30%, 9/01/27 .................................. 3,750,000 4,042,875 Gwinnett County Water and Sewer Authority Revenue, 5.25%, 8/01/25 ............................... 2,795,000 3,030,451 Henry County Hospital Authority Revenue, Henry Medical Center Inc. Project, Refunding, AMBAC Insured, 6.00%, 7/01/29 ................................................................. 5,000,000 5,633,150 Hogansville Combined Public Utility System Revenue, Refunding, FSA Insured, 6.00%, 10/01/23 ...................................................................................... 3,300,000 3,989,007 Marietta Development Authority Revenue, First Mortgage, Life College Inc., Refunding, Series A, FSA Insured, 5.75%, 9/01/14 ............................................. 1,800,000 1,848,330 Refunding, Series A, FSA Insured, 5.80%, 9/01/19 ............................................. 1,100,000 1,129,667 Refunding, Series A, FSA Insured, 5.95%, 9/01/19 ............................................. 1,000,000 1,027,330 Series B, FSA Insured, 5.75%, 9/01/14 ........................................................ 800,000 821,480 Medical Center Hospital Authority Revenue, Anticipation Certificates, Columbus Regional Healthcare System, MBIA Insured, 5.50%, 8/01/25 ............................................... 6,000,000 6,486,600 Meriwether County PFAR, Meriwether County Schools Project, MBIA Insured, 5.85%, 10/01/26 ...................................................................................... 1,000,000 1,113,250 Monroe County Development Authority PCR, Oglethorpe Power Co., Scherer Project, Refunding, Series A, 6.80%, 1/01/12 ...................................................................... 1,500,000 1,798,290 Newton County Hospital Authority Revenue, Newton Health System Project 1999, AMBAC Insured, 6.10%, 2/01/24 ....................................................................... 4,500,000 5,089,050
56 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN GEORGIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) GEORGIA (CONT.) Private Colleges and Universities Authority Revenue, Emory University Project, Refunding, Series A, 5.50%, 11/01/25 ............................... $10,000,000 $ 10,939,400 Mercer University Project, Refunding, Series A, 5.375%, 10/01/29 ............................. 2,000,000 2,070,120 Richmond County Development Authority Educational Facilities Revenue, Augusta State University Jaguar Student Center, Series A, XLCA Insured, 5.00%, 7/01/29 ...................... 1,000,000 1,057,570 Richmond County Development Authority, Solid Waste Disposal Revenue, International Paper Co. Project, 5.80%, 12/01/20 .................................................................. 1,500,000 1,570,920 Rockdale County Water and Sewer Authority Revenue, FSA Insured, 5.00%, 7/01/29 .................................................................. 4,000,000 4,264,000 Refunding, Series A, MBIA Insured, Pre-Refunded, 5.375%, 7/01/29 ............................. 5,000,000 5,532,050 Savannah EDA Revenue, Armstrong Center LLC Project, Series A, XLCA Insured, 5.00%, 12/01/30 ...................................................................................... 1,685,000 1,788,173 South Fulton Municipal Regional Water and Sewer Authority Water Revenue, MBIA Insured, 5.00%, 1/01/33 ................................................................................ 3,500,000 3,675,385 Suwanee GO, MBIA Insured, 5.25%, 1/01/32 ........................................................ 3,000,000 3,205,950 Upper Oconee Basin Water Authority Revenue, FGIC Insured, 5.25%, 7/01/27 .............................................................. 1,550,000 1,683,889 (a)Refunding, MBIA Insured, 5.00%, 7/01/26 ................................................... 1,000,000 1,071,100 Valdosta and Lowndes County Hospital Authority Revenue, Certificates, South Georgia Medical Center Project, AMBAC Insured, 5.25%, 10/01/27 ................................................. 3,000,000 3,234,630 Walton County Water and Sewer Authority Revenue, Refunding and Improvement, MBIA Insured, 6.00%, 2/01/21 ................................................................................. 750,000 780,255 Ware County Hospital Authority Revenue, Anticipation Certificates, MBIA Insured, 5.25%, 3/01/25 ........................................................................................ 3,000,000 3,239,970 ------------ 210,211,256 ------------ U. S. TERRITORIES 1.7% Virgin Islands PFAR, senior lien, Fund Loan Notes, Refunding, Series A, 5.40%, 10/01/12 .............................................................................. 850,000 910,894 5.50%, 10/01/22 .............................................................................. 1,200,000 1,272,564 5.625%, 10/01/25 ............................................................................. 1,530,000 1,622,030 ------------ 3,805,488 ------------ TOTAL BONDS (COST $198,068,593) ................................................................. 214,016,744 ------------ ZERO COUPON BONDS/STEP-UP BONDS 0.9% GEORGIA 0.9% Fayette County School District GO, zero cpn. to 9/01/10, 4.75% thereafter, 3/01/21 .................................................................... 1,355,000 1,082,672 4.95% thereafter, 3/01/25 .................................................................... 1,000,000 792,390 ------------ TOTAL ZERO COUPON BONDS/STEP-UP BONDS (COST $1,832,553) ......................................... 1,875,062 ------------ TOTAL LONG TERM INVESTMENTS (COST $199,901,146) ................................................. 215,891,806 ------------
Quarterly Statements of Investments | 57 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN GEORGIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM INVESTMENTS 1.2% BONDS 1.2% GEORGIA 1.2% (b)Atlanta Downtown Development Authority Revenue, Underground Atlanta Project, Refunding, AMBAC Insured, Weekly VRDN and Daily Put, 2.94%, 10/01/16 ..................................... $ 200,000 $ 200,000 (b)Atlanta Water and Wastewater Revenue, Series C, FSA Insured, Daily VRDN and Put, 2.97%, 11/01/41 ...................................................................................... 1,700,000 1,700,000 (b)Hapeville IDAR, Hapeville Hotel Ltd., Daily VRDN and Put, 2.92%, 11/01/15 ....................... 800,000 800,000 ------------ TOTAL SHORT TERM INVESTMENTS (COST $2,700,000) .................................................. 2,700,000 ------------ TOTAL INVESTMENTS (COST $202,601,146) 100.1% .................................................... 218,591,806 OTHER ASSETS, LESS LIABILITIES (0.1)% ........................................................... (219,776) ------------ NET ASSETS 100.0% ............................................................................... $218,372,030 ============
See Selected Portfolio Abbreviations on page 180. (a) Security purchased on a when-issued or delayed delivery basis. (b) Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. 58 | See Notes to Statements of Investments. | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 94.9% BONDS 87.0% ALABAMA 0.3% Camden IDB Exempt Facilities Revenue, Weyerhaeuser, Refunding, Series A, 6.125%, 12/01/24 ................................................................. $ 3,000,000 $ 3,332,040 Series B, 6.375%, 12/01/24 ................................................................. 1,750,000 1,941,713 Oneonta Eastern Health Systems Special Care Facilities Financing Authority GO, 7.75%, 7/01/21 ..................................................................................... 10,905,000 12,076,633 -------------- 17,350,386 -------------- ALASKA 0.2% Alaska Industrial Development and Export Authority Power Revenue, Upper Lynn Canal Regional Power, 5.70%, 1/01/12 ............................................................................. 2,260,000 2,267,096 5.80%, 1/01/18 ............................................................................. 1,495,000 1,447,010 5.875%, 1/01/32 ............................................................................ 6,900,000 6,104,292 Alaska State HFC Revenue, Series A, MBIA Insured, 5.85%, 12/01/15 ............................. 2,340,000 2,400,934 -------------- 12,219,332 -------------- ARIZONA 4.2% Apache County IDA, IDR, Tucson Electric Power Co. Project, Series C, 5.85%, 3/01/26 ........................... 16,500,000 16,518,315 PCR, Tucson Electric Power Co. Project, Series A, 5.85%, 3/01/28 ........................... 53,150,000 53,198,898 PCR, Tucson Electric Power Co. Project, Series B, 5.875%, 3/01/33 .......................... 33,800,000 33,822,984 Arizona Health Facilities Authority Hospital System Revenue, John C. Lincoln Health Network, 6.375%, 12/01/37 ............................................................................ 2,500,000 2,752,975 Arizona Health Facilities Authority Revenue, Bethesda Foundation Project, Series A, 6.375%, 8/15/15 ..................................... 400,000 408,720 Bethesda Foundation Project, Series A, 6.40%, 8/15/27 ...................................... 4,000,000 4,021,400 Catholic Healthcare West, Series A, 6.625%, 7/01/20 ........................................ 3,940,000 4,460,553 Casa Grande IDA Hospital Revenue, Casa Grande Regional Medical Center, Series A, 7.25%, 12/01/32 .................................................................................... 14,500,000 15,260,815 Coconino County Pollution Control Corp. Revenue, Pollution Control, Nevada Power Co., Series B, 5.80%, 11/01/32 ............................. 9,230,000 9,234,523 Tucson Electric Power Navajo, Refunding, Series A, 7.125%, 10/01/32 ........................ 21,125,000 22,117,452 Tucson Electric Power Navajo, Refunding, Series B, 7.00%, 10/01/32 ......................... 9,500,000 9,963,220 Gila County IDAR, Asarco Inc., Refunding, 5.55%, 1/01/27 ...................................... 4,000,000 3,774,320 Maricopa County IDA Health Facilities Revenue, Catholic Healthcare West, Refunding, ACA Insured, 5.00%, 7/01/16 ..................................................... 6,500,000 6,686,680 Series A, 5.50%, 7/01/26 ................................................................... 7,500,000 8,007,525 Maricopa County Pollution Control Corp. PCR, El Paso Electric, Series A, 6.375%, 7/01/14 ................................................ 32,000,000 32,189,440 Public Service Co. of Colorado, Refunding, Series A, 5.75%, 11/01/22 ....................... 9,800,000 10,008,838 Pima County IDAR, Tucson Electric Power Co. Project, Series A, 6.10%, 9/01/25 ................. 3,990,000 3,994,549 Red Hawk Canyon CFD No. 1 Arizona Assessment Revenue, 7.625%, 6/01/05 ......................... 5,790,000 5,790,000 -------------- 242,211,207 --------------
Quarterly Statements of Investments | 59 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) ARKANSAS 0.4% Arkansas State Development Finance Authority Industrial Facilities Revenue, Potlatch Corp. .... Projects, Series A, 7.75%, 8/01/25 .......................................................... $ 3,800,000 $ 4,382,654 Baxter County IDR, Aeroquip/Trinova Corp. Project, Refunding, 5.80%, 10/01/13 ................. 2,400,000 2,750,832 Calhoun County Solid Waste Disposal Revenue, Georgia-Pacific Corp. Project, 6.375%, 11/01/26 .................................................................................... 10,000,000 10,544,800 Warren Solid Waste Disposal Revenue, Potlach Corp. Project, 7.00%, 4/01/12 .................... 3,150,000 3,512,282 -------------- 21,190,568 -------------- CALIFORNIA 10.6% ABAG 1915 Act Special Assessment, Windemere Ranch AD, Series 1, 7.45%, 9/02/30 ............................................... 37,535,000 39,939,867 Windemere Ranch AD 99, Series 1, 6.375%, 9/02/32 ........................................... 9,740,000 10,317,777 Adelanto Water Authority Revenue, Subordinated, Water System Acquisition Project, Series A, Pre-Refunded, 7.50%, 9/01/28 ................................................................ 21,330,000 24,785,247 Alameda County MFHR, Claremont House Project, Refunding, Series A, 8.00%, 12/01/23 ............ 11,650,000 12,328,846 Avenal PFAR, Refunding, 7.00%, 9/02/10 ............................................................................. 1,000,000 1,048,020 7.25%, 9/02/27 ............................................................................. 3,665,000 3,844,219 Beaumont PFAR, Sewer Enterprise Project, Series A, Pre-Refunded, 6.90%, 9/01/23 ............... 4,400,000 5,422,252 Calabasas Special Tax, CFD No. 01-1, Refunding, 6.25%, 9/01/31 ................................ 5,780,000 6,035,245 California County Tobacco Securitization Agency Revenue, Asset-Backed, Alameda County, 5.875%, 6/01/35 ............................................................................. 3,700,000 3,747,545 California Educational Facilities Authority Revenue, Pooled College and University Financing, Series B, 6.125%, 6/01/09 ................................................................... 340,000 340,996 California Health Facilities Financing Authority Revenue, Marshall Medical Center, Series A, California Mortgage Insured, 5.00%, 11/01/24 ................................................................................... 2,295,000 2,403,691 11/01/29 ................................................................................... 2,220,000 2,297,411 11/01/33 ................................................................................... 3,130,000 3,251,319 California Infrastructure and Economic Development Bank Revenue, Department of Social Services Administration Building, AMBAC Insured, 5.00%, 12/01/30 ................................................................................... 10,300,000 11,455,969 12/01/35 ................................................................................... 14,110,000 15,639,524 California PCFA Solid Waste Disposal Revenue, Keller Canyon Landfill Co. Project, 6.875%, 11/01/27 .................................................................................... 5,480,000 5,550,582 California State GO, 5.25%, 4/01/30 ............................................................................. 2,500,000 2,666,500 5.00%, 2/01/33 ............................................................................. 40,140,000 42,122,113 Refunding, 5.25%, 4/01/32 .................................................................. 2,500,000 2,663,425 Various Purpose, 5.125%, 11/01/24 .......................................................... 18,935,000 20,219,929 California Statewide CDA Revenue, Elder Care Alliance, Series A, 8.25%, 11/15/32 ............................................. 13,090,000 13,938,494 Eskaton Village Grass Valley, 8.25%, 11/15/31 .............................................. 3,335,000 3,702,951 John F. Kennedy University, 6.75%, 10/01/33 ................................................ 8,000,000 8,500,960 Monterey Institute International, 7.75%, 7/01/31 ........................................... 13,240,000 13,078,207 Prospect Sierra School, 6.75%, 9/01/32 ..................................................... 6,545,000 6,907,658
60 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) CALIFORNIA (CONT.) Chula Vista CFD Special Tax, No, 07-I, Otay Ranch Village Eleven, 5.875%, 9/01/34 ....................................... $ 3,205,000 $ 3,330,892 No. 99-1, Otay Ranch Special Assessment 1, 6.10%, 9/01/31 .................................. 4,890,000 5,101,444 Corona COP, Corona Community Hospital Project, ETM, 9.425%, 9/01/06 ....................................................................... 2,555,000 2,676,541 Pre-Refunded, 9.425%, 9/01/20 .............................................................. 8,820,000 11,346,842 El Dorado County CFD Special Tax, Promontory Specific, Series No. 2001-1, 6.30%, 9/01/31 ..................................................................................... 3,500,000 3,678,500 Elk Grove Special Tax, East Franklin Community No. 1-A, 5.80%, 8/01/25 ............................................................................. 3,745,000 3,892,590 6.00%, 8/01/33 ............................................................................. 5,435,000 5,676,640 Emeryville RDA, MFHR, Emery Bay Apartments II, Refunding, Series A, 5.85%, 10/01/28 ....................................................... 13,670,000 13,701,031 sub. lien, Refunding, Series B, 6.35%, 10/01/28 ............................................ 3,235,000 3,251,531 sub. lien, Refunding, Series C, 7.875%, 10/01/28 ........................................... 1,915,000 1,924,479 Foothill/Eastern Corridor Agency Toll Road Revenue, senior lien, Series A, Pre-Refunded, 6.50%, 1/01/32 .............................................................................. 37,675,000 39,852,615 Fullerton CFD No. 1 Special Tax, Amerige Heights, 6.20%, 9/01/32 .............................. 3,500,000 3,650,780 Gateway Improvement Authority Revenue, Marin City CFD, Series A, Pre-Refunded, 7.75%, 9/01/25 ..................................................................................... 4,410,000 4,549,444 Golden State Tobacco Securitization Corp. Tobacco Settlement Revenue, Asset-Backed, Series A-3, 5.50%, 6/01/33 ................................................... 20,000,000 21,721,800 Asset-Backed, Series A-3, 7.875%, 6/01/42 .................................................. 10,000,000 11,731,600 Asset-Backed, Series A-3, 5.50%, 6/01/43 ................................................... 20,000,000 21,441,400 Asset-Backed, Series B, 5.625%, 6/01/38 .................................................... 21,000,000 22,910,160 Series 2003 A-1, 6.75%, 6/01/39 ............................................................ 4,735,000 5,161,624 Lake Elsinore 1915 Act Special Assessment, AD No. 93-1, Limited Obligation, Refunding, 7.00%, 9/02/30 .............................................................................. 8,310,000 8,885,468 Lee Lake Water District CFD No. 3 Special Tax, Retreat, 5.95%, 9/01/34 ........................ 5,000,000 5,132,550 Los Angeles MFR, Refunding, Series J-1B, 7.125%, 1/01/24 ............................................................... 505,000 506,752 Series J-1C, 7.125%, 1/01/24 ............................................................... 1,155,000 1,159,008 Series J-2B, 8.50%, 1/01/24 ................................................................ 2,485,000 2,387,563 Series J-2C, 8.50%, 1/01/24 ................................................................ 5,585,000 5,366,012 Los Angeles Regional Airports Improvement Corp. Lease Revenue, Facilities Sub Lease, International Airport, Refunding, 6.35%, 11/01/25 .................... 12,000,000 9,908,760 Facilities Sub-Lease, Los Angeles International, Series A-1, 7.125%, 12/01/24 .............. 2,000,000 2,081,780 Facilities Sub-Lease, Los Angeles International, Series A-2, 7.50%, 12/01/24 ............... 10,000,000 10,526,600 Refunding, Series C, 6.125%, 12/01/07 ...................................................... 4,655,000 4,578,798 Refunding, Series C, 7.00%, 12/01/12 ....................................................... 8,000,000 8,239,120 Refunding, Series C, 7.50%, 12/01/24 ....................................................... 30,000,000 31,558,500 (a)United Airlines, International Airport, Refunding, 6.875%, 11/15/12 ........................ 9,500,000 8,451,105 Murrieta 1915 Act Special Tax, CFD No. 2000-1, 6.375%, 9/01/30 ................................ 4,000,000 4,242,680 Oakland Revenue, YMCA East Bay Project, Refunding, 7.10%, 6/01/10 ............................. 1,715,000 1,783,017 Poway USD Special Tax, CFD No. 10, Area A, 6.10%, 9/01/31 ......................................................... 1,995,000 2,056,925 CFD No. 11, Area A, 5.375%, 9/01/28 ........................................................ 2,965,000 2,985,340 CFD No. 11, Area A, 5.375%, 9/01/34 ........................................................ 2,235,000 2,244,409
Quarterly Statements of Investments | 61 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) CALIFORNIA (CONT.) San Bernardino County Finance Authority Revenue, Public Improvement, AD, Refunding, Series A, 7.00%, 9/02/17 .................................................................... $ 2,005,000 $ 2,015,466 San Francisco Uptown Parking Corp. Parking Revenue, Union Square, MBIA Insured, 6.00%, 7/01/31 ..................................................................................... 8,920,000 10,024,296 San Joaquin Hills Transportation Corridor Agency Toll Road Revenue, senior lien, 5.00%, 1/01/33 ..................................................................................... 11,930,000 10,981,684 San Jose MFHR, Timberwood Apartments, Series B, 9.25%, 2/01/10 ................................ 1,180,000 1,181,097 San Ramon 1915 Act Special Assessment, Fostoria Parkway Reassessment District No. 9, 6.80%, 9/02/15 .............................................................................. 615,000 636,765 Saugus USD Special Tax, 6.00%, 9/01/33 ........................................................ 3,150,000 3,265,637 Stockton CFD Special Tax, Spanos Park West, 6.375%, 9/01/32 ................................... 4,100,000 4,320,375 Stockton Improvement Bond Revenue, 1915 Act, Limited Obligation, Mosher AD 02, 6.30%, 9/02/33 ..................................................................................... 6,000,000 6,186,540 Upland CFD Special Tax, 2003-2 San Antonio Improvement, Series 1-A, 6.00%, 9/01/34 ............ 6,520,000 6,794,492 West Sacramento Special Tax, CFD No. 16, 6.00%, 9/01/33 ....................................... 3,000,000 3,110,130 -------------- 608,419,529 -------------- COLORADO 2.0% Colorado Health Facilities Authority Revenue, Volunteers of America Care Facilities, Refunding and Improvement, Series A, 5.45%, 7/01/08 ............................................................................. 890,000 886,217 5.75%, 7/01/20 ............................................................................. 3,000,000 2,928,990 5.875%, 7/01/28 ............................................................................ 2,990,000 2,882,031 Denver City and County Airport Revenue, Series B, 5.50%, 11/15/33 .................................................................. 20,000,000 20,350,800 Series D, 7.75%, 11/15/13 .................................................................. 500,000 598,170 (a)Denver City and County Special Facilities Airport Revenue, United Airlines Inc. Project, Series A, 6.875%, 10/01/32 .................................................................. 11,760,000 10,142,765 Denver Health and Hospital Authority Healthcare Revenue, 6.25%, 12/01/33 ...................... 4,000,000 4,339,640 Eagle County Air Terminal Corp. Revenue, Series A, 7.125%, 5/01/31 ............................ 1,705,000 1,820,804 Eagle County Airport Terminal Corp. Revenue, 7.50%, 5/01/21 ............................................................................. 1,785,000 1,834,926 Series A, 7.00%, 5/01/21 ................................................................... 850,000 904,681 Eagle County Sports and Housing Facilities Revenue, Vail Associate Project, Refunding, 6.95%, 8/01/19 .............................................................................. 41,200,000 44,101,304 Littleton MFHR, Riverpoint, Refunding, Series C, 8.00%, 12/01/29 .............................. 2,835,000 3,000,195 McKay Landing Metropolitan District No. 002 GO, Limited Tax, 7.50%, 12/01/19 ............................................................... 3,375,000 3,689,280 Refunding, Subordinated, Series A, 7.50%, 12/01/34 ......................................... 2,000,000 2,026,820 Saddle Rock South Metropolitan District No. 2 GO, Ltd. Mill Levy Obligation, 7.20%, 12/01/19 .................................................................................... 575,000 622,541 Saddle Rock South Metropolitan District No. 3 GO, Ltd. Mill Levy Obligation, 7.35%, 12/01/19 .................................................................................... 3,320,000 3,599,312 University of Colorado Hospital Authority Revenue, Series A, 5.60%, 11/15/31 .................. 9,000,000 9,430,650 Villages Castle Rock Metropolitan District No. 4 Revenue, Refunding, 8.50%, 6/01/31 ........... 3,000,000 3,012,510 -------------- 116,171,636 --------------
62 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) CONNECTICUT 1.8% Connecticut State Development Authority PCR, Connecticut Light and Water, Refunding, Series A, 5.85%, 9/01/28 ........................... $53,825,000 $ 57,524,931 Western Massachusetts Electric Co., Refunding, Series A, 5.85%, 9/01/28 .................... 12,500,000 13,359,250 Connecticut State Development Authority Water Facility Revenue, Bridgeport Hydraulic Co. ...... Project, 6.15%, 4/01/35 ..................................................................... 3,000,000 3,146,430 Connecticut State Health and Educational Facilities Authority Revenue, Sacred Heart University, Series C, 6.50%, 7/01/16 .......................................... 420,000 438,316 Sacred Heart University, Series C, Pre-Refunded, 6.50%, 7/01/16 ............................ 1,580,000 1,669,997 St. Mary's Hospital, Refunding, Series E, 5.50%, 7/01/20 ................................... 5,650,000 5,313,260 Windham Community Memorial Hospital, Series C, 6.00%, 7/01/11 .............................. 1,400,000 1,414,000 Connecticut State HFAR, Housing Mortgage Finance Program, Series C-1, 6.30%, 11/15/17 .................................................................................... 19,995,000 20,725,817 -------------- 103,592,001 -------------- FLORIDA 7.5% Beacon Tradeport CDD Special Assessment, Commercial Project, Series A, Pre-Refunded, 6.00%, 5/01/16 ............................................................................. 26,130,000 29,070,148 6.20%, 5/01/22 ............................................................................. 23,590,000 27,469,847 Brighton Lakes CDD Special Assessment, Series B, 7.625%, 5/01/31 .............................. 3,215,000 3,432,109 Brooks of Bonita Springs CDD Capital Improvement Revenue, 6.85%, 5/01/31 ............................................................................. 1,420,000 1,522,126 Series A, 6.20%, 5/01/19 ................................................................... 6,625,000 6,934,321 Brooks of Bonita Springs II CDD Capital Improvement Revenue, Series A, 7.00%, 5/01/31 ...................................................................................... 12,145,000 12,879,408 Capital Region CDD Capital Improvement Revenue, Series A-2, 6.85%, 5/01/31 .................... 2,395,000 2,592,396 Championsgate CDD Capital Improvement Revenue, Series A, 6.25%, 5/01/20 ....................... 2,715,000 2,760,938 Citrus County Hospital Board Revenue, Citrus Memorial Hospital, Refunding, 6.375%, 8/15/32 ..................................................................................... 10,550,000 11,273,624 (b)East Homested CDD Special Assessment Revenue, 5.45%, 11/01/36 ................................. 1,500,000 1,528,980 Falcon Trace CDD Special Assessment, 6.00%, 5/01/20 ........................................... 3,690,000 3,825,091 Fleming Plantation CDD Special Assessment, Series B, 7.375%, 5/01/31 .......................... 9,900,000 10,777,932 Florida State Board of Education Capital Outlay GO, Public Education, Refunding, Series D, 6.00%, 6/01/23 .............................................................................. 5,000,000 6,288,950 Gateway Services District Water Management Benefit Tax Revenue, Second Assessment Area, Phase One, 8.00%, 5/01/20 ................................................................... 3,755,000 3,876,099 Groves CDD Special Assessment Revenue, Series A, 7.75%, 5/01/32 ................................................................... 1,770,000 1,783,948 Series B, 7.625%, 5/01/08 .................................................................. 4,200,000 4,160,646 Halifax Hospital Medical Center Hospital Revenue, Series A, 7.25%, 10/01/24 ................................................................................... 4,700,000 5,396,916 10/01/29 ................................................................................... 1,400,000 1,586,144 Heritage Harbor CDD Special Assessment Revenue, Series A, 6.70%, 5/01/19 ...................... 1,500,000 1,543,695 Hillsborough County IDAR, Refunding, Series B, 5.25%, 10/01/28 ................................................................................... 1,500,000 1,566,720 10/01/34 ................................................................................... 7,250,000 7,547,032 Indian Trace CDD Special Assessment, Isles at Weston Project, 5.50%, 5/01/33 .................. 3,000,000 3,043,590 Indian Trace CDD, GO, Water Management Special Benefit, Refunding, Sub Series B, 8.25%, 5/01/11 ..................................................................................... 12,760,000 14,270,912
Quarterly Statements of Investments | 63 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) FLORIDA (CONT.) Indian Trail ID, GO, Water Control and Improvement, Unit Development 18, 6.875%, 8/01/10 ............................................................................ $ 830,000 $ 870,877 7.00%, 8/01/20 ............................................................................. 2,445,000 2,602,385 7.25%, 8/01/31 ............................................................................. 5,725,000 6,103,022 Indigo CDD Capital Improvement Revenue, Refunding, Series A, 7.00%, 5/01/31 ........................................................ 940,000 967,815 Series C, 7.00%, 5/01/30 ................................................................... 4,860,000 5,003,807 Islands at Doral CDD Special Assessment, 6.125%, 5/01/24 ...................................... 1,935,000 2,053,674 Lake Ashton CDD Revenue, Series A, 7.40%, 5/01/32 ............................................. 1,710,000 1,842,046 Lakeland Retirement Community Revenue, first mortgage, Carpenters Home, Refunding, Series A, 6.75%, 1/01/19 .................................................................... 14,955,000 15,294,478 Lakeside Plantation CDD Capital Improvement Revenue, 7.00%, 5/01/07 ........................... 711,799 711,828 Lakewood Ranch CDD No. 2 Benefit Special Assessment, Series A, 8.125%, 5/01/17 ................ 2,660,000 2,738,736 Lakewood Ranch CDD No. 3 Special Assessment Revenue, 7.625%, 5/01/18 .......................... 460,000 477,015 Largo First Mortgage Revenue, The Barrington Project, Series A, 7.50%, 9/01/33 ................ 10,845,000 11,364,367 Mediterra North CDD Capital Improvement Revenue, Series A, 6.80%, 5/01/31 ..................... 8,440,000 9,083,381 Mediterra South CDD Capital Improvement Revenue, 6.85%, 5/01/31 ............................................................................. 2,640,000 2,836,759 Series B, 6.95%, 5/01/31 ................................................................... 7,405,000 7,832,639 (a)Miami-Dade County IDAR, Special Facilities, United Airlines Inc. Project, Mandatory Put 3/01/10, 6.05%, 3/01/35 ..................................................................... 5,000,000 289,000 Midtown Miami Community Development Special Assessment Revenue, Series A, 6.25%, 5/01/37 ................................................................... 7,500,000 7,891,650 Series B, 6.50%, 5/01/37 ................................................................... 4,000,000 4,235,240 Mount Dora Country Club CDD Special Assessment Revenue, 7.75%, 5/01/13 ........................ 545,000 555,442 North Springs ID Special Assessment Revenue, Parkland Isles Project, Series A, 7.00%, 5/01/19 ..................................................................................... 865,000 895,137 North Springs ID Special Assessment, Water Management, Series B, 8.30%, 5/01/24 ............... 1,520,000 1,549,458 Northern Palm Beach County ID Revenue, Water Control and Improvement, Unit Development No. 43, 6.10%, 8/01/21 ...................................................................... 2,775,000 2,932,703 Northwood CDD Special Assessment Revenue, Series B, 7.60%, 5/01/17 ............................ 1,225,000 1,233,232 Oakstead CDD Revenue, Capital Improvement, Series A, 7.20%, 5/01/32 ........................... 3,300,000 3,565,122 Orange County Health Facilities Authority Revenue, Hospital Adventist Health System, 5.625%, 11/15/32 ......................................... 10,000,000 10,776,900 Hospital Orlando Regional Healthcare, 5.75%, 12/01/32 ...................................... 15,000,000 16,310,850 Orange County Tourist Development Tax Revenue, Refunding, AMBAC Insured, 5.00%, 10/01/29 .................................................................................... 13,925,000 14,849,898 Parklands West CDD Revenue, Special Assessment, Series A, 6.90%, 5/01/32 ...................... 2,895,000 3,104,395 Parkway Center CDD Special Assessment, Mandatory Put 8/11/04, Series A, 8.25%, 5/01/31 ..................................................................................... 1,386,894 1,404,757 Pelican Marsh CDD Special Assessment Revenue, Series A, 7.10%, 5/01/20 ................................................................... 3,540,000 3,830,422 Series A, 7.20%, 5/01/31 ................................................................... 6,470,000 7,005,004 Series B, 6.90%, 5/01/11 ................................................................... 3,710,000 3,827,755 Series C, 7.00%, 5/01/19 ................................................................... 10,845,000 11,353,305 Series D, 6.95%, 5/01/19 ................................................................... 3,915,000 4,091,332 Piney-Z CDD Capital Improvement Revenue, Series A, 7.25%, 5/01/19 ............................. 705,000 738,050 Poinciana CDD Special Assessment, Series A, 7.125%, 5/01/31 ................................... 10,335,000 10,983,004
64 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) FLORIDA (CONT.) Reserve CDD Capital Improvement Revenue, Stormwater Management, 8.25%, 5/01/14 ................ $ 1,950,000 $ 1,993,173 Reserve CDD No. 2 Capital Improvement Revenue, 7.125%, 5/01/30 ................................ 4,410,000 4,608,538 Reserve CDD Utility Revenue, Stormwater Management, Refunding, Series A, 6.625%, 12/01/22 .................................................................................... 3,985,000 4,192,977 River Place St. Lucie CDD Special Assessment Revenue, Series A, 7.625%, 5/01/21 .................................................................. 1,175,000 1,258,919 Series A, 7.625%, 5/01/30 .................................................................. 1,590,000 1,700,712 Series B, 7.25%, 5/01/10 ................................................................... 970,000 999,886 Riverwood Community Development Revenue, Special AD, Series A, 7.75%, 5/01/14 ................. 730,000 788,692 Sampson Creek CDD Capital Improvement Revenue, Series A, 6.95%, 5/01/31 ....................... 2,860,000 3,005,660 South-Dade Venture CDD Special Assessment Revenue, 6.00%, 5/01/24 ............................. 2,820,000 2,935,197 St. Lucie West Services District Capital Improvement Revenue, Cascades Project, 6.10%, 5/01/18 ..................................................................................... 2,095,000 2,172,012 St. Lucie West Services District Special Assessment Revenue, Port St. Lucie, Water Management Benefit, Refunding, Series B, 6.00%, 5/01/09 ............................................................................. 675,000 687,218 6.25%, 5/01/25 ............................................................................. 5,080,000 5,332,374 Stonegate CDD Special Assessment Revenue, 6.00%, 5/01/24 ...................................... 2,235,000 2,322,836 Stoneybrook West CDD Special Assessment Revenue, Series A, 7.00%, 5/01/32 ..................... 2,990,000 3,199,450 Tara CDD No. 1 Capital Improvement Revenue, Series A, 7.15%, 5/01/31 .......................... 1,355,000 1,454,376 Venetian CDD Capital Improvement Revenue, Series A, 6.75%, 5/01/34 ............................ 8,580,000 9,276,181 Verandah West CDD Revenue, Series A, 6.625%, 5/01/33 .......................................... 8,795,000 9,300,097 Village CDD No. 4 Special Assessment Revenue, 7.20%, 5/01/31 .................................. 7,955,000 8,629,982 Village Center CDD Recreational Revenue, Sub Series B, 6.30%, 1/01/07 ............................................................... 1,020,000 1,038,340 Sub Series B, 6.25%, 1/01/13 ............................................................... 6,935,000 7,352,764 Sub Series B, 8.25%, 1/01/17 ............................................................... 2,055,000 2,194,966 Sub Series C, 7.375%, 1/01/19 .............................................................. 2,325,000 2,490,796 Vista Lake CDD Capital Improvement Revenue, Series A, 7.20%, 5/01/32 .......................... 2,730,000 2,928,635 Waterchase CDD Capital Improvement Revenue, Series A, 6.70%, 5/01/32 .......................... 2,895,000 3,099,705 Waterlefe CDD Capital Improvement Revenue, Series A, 6.95%, 5/01/31 ........................... 1,190,000 1,286,509 Westchase East CDD Capital Improvement Revenue, 7.10%, 5/01/21 ................................ 1,445,000 1,549,791 -------------- 432,136,843 -------------- GEORGIA 2.3% Atlanta Airport Passenger Facility Charge Revenue, General, sub. lien, Series C, FSA Insured, 5.00%, 1/01/33 ...................................................... 36,000,000 37,683,360 Series J, FSA Insured, 5.00%, 1/01/29 ...................................................... 16,445,000 17,300,798 Atlanta Water and Wastewater Revenue, FSA Insured, 5.00%, 11/01/34 ............................ 20,200,000 21,412,606 Baldwin County Hospital Authority Revenue, Oconee Regional Medical Center, 5.375%, 12/01/28 .................................................................................... 1,470,000 1,311,005 Floyd County Development Authority Environmental Improvement Revenue, Dates-Temple-Inland, 5.70%, 12/01/15 ........................................................ 1,575,000 1,702,591 Forsyth County Hospital Authority Revenue, Anticipation Certificate, Georgia Baptist Health Care System Project, ETM, 6.25%, 10/01/18 ............................................................................ 6,000,000 7,108,260 6.375%, 10/01/28 ........................................................................... 8,000,000 10,287,200
Quarterly Statements of Investments | 65 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) GEORGIA (CONT.) Henry County Hospital Authority Revenue, Henry Medical Center Inc. Project, MBIA Insured, 5.00%, 7/01/34 .............................................................................. $26,145,000 $ 27,685,202 McDuffie County Development Authority Waste Disposal Revenue, Temple-Inland Forest Products, 6.95%, 12/01/23 ................................................................... 5,120,000 5,784,934 -------------- 130,275,956 -------------- HAWAII 0.5% Hawaii State Department of Transportation Special Facilities Revenue, Continental Airlines Inc. Project, Refunding, 7.00%, 6/01/20 ..................................................... 4,240,000 3,832,451 Honolulu City and County GO, Series A, MBIA Insured, 5.00%, 7/01/26 .................................................................................... 12,020,000 12,884,839 7/01/27 .................................................................................... 12,640,000 13,517,090 -------------- 30,234,380 -------------- IDAHO 0.3% Nez Perce County PCR, Potlatch 84, 7.00%, 12/01/14 ................................................................ 2,500,000 2,845,550 Potlatch Corp. Project, Refunding, 6.00%, 10/01/24 .......................................... 17,500,000 17,814,300 -------------- 20,659,850 -------------- ILLINOIS 2.7% Antioch Village Special Service Area No. 1 Special Tax, Deercrest Project, 6.625%, 3/01/33 ..................................................................................... 3,350,000 3,424,303 Antioch Village Special Service Area No. 2 Special Tax, Clublands Project, 6.625%, 3/01/33 ..................................................................................... 5,544,000 5,666,966 Bolingbrook Special Service Area No. 1 Special Tax, Augusta Village Project, 6.75%, 3/01/32 ............................................................................. 5,454,000 5,740,662 Series 2004, 6.25%, 3/01/32 ................................................................ 3,655,000 3,738,992 Bolingbrook Special Service Area No. 2 Special Tax, Bloomfield West Project, Series A, 6.625%, 3/01/31 ............................................................................ 4,465,000 4,686,017 7.00%, 3/01/31 ............................................................................. 4,928,000 5,278,775 Bolingbrook Special Service Area No. 3 Special Tax, Lakewood Ridge Project, 7.05%, 3/01/31 ..................................................................................... 5,877,000 6,270,877 Bryant PCR, Central Illinois Light Co. Project, Refunding, MBIA Insured, 5.90%, 8/01/23 ....... 11,000,000 11,265,320 Cary Special Tax, Special Service Area No. 1 Cambridge, Series A, 7.625%, 3/01/30 ............................ 3,599,000 3,910,709 Special Service Area No. 2 Foxford Hill, 7.50%, 3/01/30 .................................... 5,400,000 5,755,644 Chicago O'Hare International Airport Special Facilities Revenue, American Airlines Inc. ....... Project, 8.20%, 12/01/24 .................................................................... 7,830,000 7,354,249 Gilberts Special Service Area No. 9 Special Tax, Big Timber Project, 7.75%, 3/01/27 ........... 6,000,000 6,681,480 Illinois Health Facilities Authority Revenue, Rush Presbyterian Hospital, Refunding, Series A, MBIA Insured, 6.25%, 11/15/20 ............. 9,000,000 9,566,910 Sarah Bush Lincoln Health Center, Refunding, Series B, 6.00%, 2/15/11 ...................... 3,370,000 3,572,368 St. Elizabeth's Hospital, 6.25%, 7/01/16 ................................................... 1,215,000 1,271,412 St. Elizabeth's Hospital, 6.375%, 7/01/26 .................................................. 6,695,000 6,924,237 Thorek Hospital and Medical Center, Refunding, 5.375%, 8/15/28 ............................. 8,595,000 8,697,195
66 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) ILLINOIS (CONT.) Metropolitan Pier and Exposition Authority Hospitality Facilities Revenue, McCormick Place Convention Center, ETM, 7.00%, 7/01/26 ........................................................................ $ 7,500,000 $ 10,177,125 Pre-Refunded, 6.25%, 7/01/17 ............................................................... 11,000,000 11,615,780 Minooka Special Assessment, Improvement Prairie Ridge Project, 6.875%, 3/01/33 ................ 3,000,000 3,097,350 Montgomery Special Assessment, Improvement, Lakewood Creek Project, 7.75%, 3/01/30 ..................................................................................... 4,826,000 5,296,873 Plano Special Service Area No. 2 Special Tax, Lakewood Springs Project, Series B, 6.375%, 3/01/34 ..................................................................................... 8,000,000 8,227,760 Southwestern Development Authority Revenue, Anderson Hospital, 5.625%, 8/15/29 ................ 2,425,000 2,515,283 Wauconda Special Service Area No. 1 Special Tax, Liberty Lakes Project, 6.625%, 3/01/33 ..................................................................................... 5,280,000 5,431,906 Yorkville United City Special Service Area Special Tax, No. 04, MPI Grande Reserve Project, Series 104, 6.375%, 3/01/34 ............................ 4,400,000 4,535,256 No. 2003, Windett Ridge Project, Series 101, 6.875%, 3/01/33 ............................... 3,900,000 4,132,323 -------------- 154,835,772 -------------- INDIANA 1.5% Goshen Industrial Revenue, Greencroft Hospital Assn. Inc., Refunding, 5.75%, 8/15/19 .................................................................................... 3,000,000 3,023,820 8/15/28 .................................................................................... 5,000,000 5,017,300 Indiana Health Facility Financing Authority Hospital Revenue, 6.25%, 3/01/25 ............................................................................. 3,200,000 3,456,128 6.00%, 3/01/34 ............................................................................. 12,000,000 12,760,560 Community Foundation Northwest Indiana, Series A, 6.375%, 8/01/31 .......................... 48,500,000 51,944,955 Jackson County Scheck Memorial Hospital, Refunding, 5.125%, 2/15/17 ........................ 1,500,000 1,568,070 Indiana State Development Finance Authority Environmental Revenue, USX Corp. Project, Refunding, 5.60%, 12/01/32 .................................................................. 8,200,000 8,532,920 -------------- 86,303,753 -------------- KANSAS 0.2% Wyandotte County City Unified Government Utility System Revenue, Improvement, Series B, FSA Insured, 5.00%, 9/01/32 .................................................................. 10,000,000 10,607,000 -------------- KENTUCKY 1.9% Kenton County Airport Board Airport Revenue, Special Facilities, Delta Airlines Inc. Project, Series A, 7.50%, 2/01/12 ................................................................... 7,050,000 6,543,317 Series A, 7.50%, 2/01/20 ................................................................... 35,275,000 31,294,216 Series A, 7.125%, 2/01/21 .................................................................. 28,830,000 24,374,323 Series A, 6.125%, 2/01/22 .................................................................. 12,940,000 9,839,964 Series B, 7.25%, 2/01/22 ................................................................... 5,315,000 4,527,104 Kentucky Economic Development Finance Authority Hospital System Revenue, Appalachian Regional Health Center Facility, Refunding and Improvement, 5.875%, 10/01/22 ................ 6,835,000 6,664,057 Maysville Solid Waste Disposal Facilities Revenue, Inland Container Corp. Project, Refunding, 6.90%, 9/01/22 .............................................................................. 16,000,000 18,024,320
Quarterly Statements of Investments | 67 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) KENTUCKY (CONT.) Powderly Industrial Development First Mortgage Revenue, Kroger Co., Refunding, 7.375%, 9/01/06 ..................................................................................... $ 255,000 $ 256,895 Russell Health System Revenue, Pre-Refunded, 8.10%, 7/01/15 ................................... 6,550,000 6,991,985 -------------- 108,516,181 -------------- LOUISIANA 1.1% Beauregard Parish Revenue, Boise Cascade Corporate Project, Refunding, 6.80%, 2/01/27 ..................................................................................... 13,990,000 15,196,917 Louisiana Public Facilities Authority Revenue, FHA Insured Mortgage, Baton Rouge General, MBIA Insured, 5.25%, 7/01/33 ................................................................ 20,000,000 21,383,800 Pointe Coupee Parish PCR, Gulf States Utilities Co. Project, Refunding, 6.70%, 3/01/13 ........ 4,850,000 4,865,666 West Feliciana Parish PCR, Entergy Gulf States Project, Refunding, Series B, 6.60%, 9/01/28 ..................................................................................... 20,750,000 21,032,200 -------------- 62,478,583 -------------- MAINE 0.6% Rumford PCR, Boise Cascade Corp. Project, Refunding, 6.625%, 7/01/20 .......................... 4,800,000 4,903,824 Skowhegan PCR, S.D. Warren Co., Series A, 6.65%, 10/15/15 .................................................................. 24,570,000 25,083,759 Series B, 6.65%, 10/15/15 .................................................................. 4,940,000 5,043,295 -------------- 35,030,878 -------------- MARYLAND 0.7% Gaithersberg Hospital Facilities Revenue, Shady Grove Adventist Hospital, Refunding and Improvement, Series B, 8.50%, 9/01/07 ....................................................... 3,890,000 4,137,793 Maryland State CDA Department of Housing and Community Development Revenue, Series A, 5.875%, 7/01/16 ............................................................................. 2,500,000 2,597,450 Maryland State EDC Revenue, Chesapeake Bay, senior lien, Series B, 7.50%, 12/01/14 ..................................................... 1,915,000 2,046,043 senior lien, Series B, 7.625%, 12/01/22 .................................................... 6,740,000 7,201,151 Series B, 7.75%, 12/01/31 .................................................................. 16,160,000 17,245,790 Takoma Park Hospital Facilities Revenue, Washington Adventist Hospital Project, Series B, 8.50%, 9/01/07 .............................................................................. 5,475,000 5,863,178 -------------- 39,091,405 -------------- MASSACHUSETTS 0.4% Massachusetts Bay Transportation Authority Revenue, General Transportation System, Series A, 7.00%, 3/01/21 .............................................................................. 2,000,000 2,553,200 Massachusetts State Development Finance Agency Resource Recovery Revenue, Waste Management Inc. Project, Mandatory Put 12/01/09, Series A, 6.90%, 12/01/29 .................. 3,000,000 3,359,880 Massachusetts State Development Finance Agency Revenue, Berkshire Retirement Project, first mortgage, 5.60%, 7/01/19 ............................... 1,030,000 1,049,580 Berkshire Retirement Project, first mortgage, 5.625%, 7/01/29 .............................. 1,620,000 1,636,087 Loomis Community Project, first mortgage, Refunding, Series A, 5.75%, 7/01/23 .............. 3,500,000 3,422,930 Loomis Community Project, first mortgage, Series A, 5.625%, 7/01/15 ........................ 1,850,000 1,868,999 Massachusetts State Health and Educational Facilities Authority Revenue, Saint Memorial Medical Center, Refunding, Series A, 5.75%, 10/01/06 ............................................................................ 1,730,000 1,735,778 6.00%, 10/01/23 ............................................................................ 6,235,000 6,255,950
68 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MASSACHUSETTS (CONT.) (a)Massachusetts State Industrial Finance Agency Solid Waste Disposal Revenue, Massachusetts Paper Co. Project, senior lien, 8.50%, 11/01/12 ............................................. $39,820,661 $ 99,552 -------------- 21,981,956 -------------- MICHIGAN 3.3% Delta County EDC Environmental Improvement Revenue, Mead Escanaba Paper, Refunding, Series A, Pre-Refunded, 6.25%, 4/15/27 ...................................................... 10,500,000 12,346,530 Garden City Hospital Financing Authority Hospital Revenue, Refunding, 5.625%, 9/01/10 ............................................................................ 1,895,000 1,882,531 5.75%, 9/01/17 ............................................................................. 1,000,000 961,680 Gaylord Hospital Finance Authority Ltd. Obligation Revenue, Otsego Memorial Hospital, Refunding, 6.50%, 1/01/31 .................................................................................... 1,000,000 1,008,430 1/01/37 .................................................................................... 1,000,000 1,007,720 Kent Hospital Finance Authority Health Care Revenue, Butterworth Health System, Series A, MBIA Insured, Pre-Refunded, 6.125%, 1/15/21 ................................................. 11,770,000 12,240,094 Michigan State Building Authority Revenue, Facilities Program, Refunding, Series II, MBIA Insured, 5.00%, 10/15/29 ............................................................... 10,950,000 11,562,105 Michigan State Hospital Finance Authority Revenue, Ascension Health Credit, Series A, MBIA Insured, Pre-Refunded, 6.125%, 11/15/23 ............ 18,000,000 20,355,660 Detroit Medical Center Obligation Group, Refunding, Series A, 6.25%, 8/15/13 ............... 7,500,000 7,506,525 Detroit Medical Center Obligation Group, Refunding, Series A, 6.50%, 8/15/18 ............... 30,205,000 30,231,278 Detroit Medical Center Obligation Group, Refunding, Series B, 5.50%, 8/15/23 ............... 500,000 466,205 Detroit Medical Center Obligation Group, Series A, 5.25%, 8/15/23 .......................... 500,000 452,600 Marquette, 5.00%, 5/15/34 .................................................................. 3,500,000 3,543,715 Memorial Healthcare Center, Refunding, 5.75%, 11/15/15 ..................................... 1,000,000 1,068,090 Mercy Health Services, Series Q, AMBAC Insured, ETM, 5.75%, 8/15/16 ........................ 7,310,000 7,551,157 Sinai Hospital, Refunding, 6.625%, 1/01/16 ................................................. 2,990,000 3,042,385 Sinai Hospital, Refunding, 6.70%, 1/01/26 .................................................. 7,250,000 7,336,347 Michigan State Strategic Fund Ltd. Obligation Revenue, Detroit Edison Co. Pollution Control Project, Refunding, Series C, 5.45%, 9/01/29 .......... 11,000,000 11,642,290 The Detroit Edison Co. Project Collateral, Refunding, Series BB, MBIA Insured, 6.20%, 8/15/25 ................................................................................... 7,825,000 8,032,206 Midland County EDR, Refunding, Series A, 6.875%, 7/23/09 .................................................................. 35,000,000 36,736,700 Series B, 6.75%, 7/23/09 ................................................................... 4,000,000 4,188,440 Tawas City Hospital Finance Authority Revenue, Tawas St. Joseph's Hospital Project, Series A, ETM, 5.60%, 2/15/13 ......................................................................... 1,565,000 1,702,376 Wayne Charter County Special Airport Facilities Revenue, Airport Revenues, Refunding, 6.75%, 12/01/15 .................................................................................... 4,995,000 4,488,507 -------------- 189,353,571 -------------- MINNESOTA 1.7% Hubbard County Solid Waste Disposal Revenue, Potlatch Corp. Project, 7.25%, 8/01/14 ........... 9,000,000 10,261,620 Maplewood Health Care Facility Revenue, Health East Project, 5.95%, 11/15/06 .................. 1,510,000 1,527,667 Minneapolis and St. Paul Metropolitan Airports Commission Airport Revenue, Refunding, Sub Series A, AMBAC Insured, 5.00%, 1/01/29 ................................................ 5,000,000 5,308,550 Sub Series C, FGIC Insured, 5.00%, 1/01/31 ................................................. 21,730,000 23,035,756
Quarterly Statements of Investments | 69 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MINNESOTA (CONT.) Minneapolis and St. Paul Metropolitan Airports Commission Special Facilities Revenue, Northwest Airlines Inc. Project, Refunding, 7.375%, 4/01/25 ................................................................. $ 5,000,000 $ 4,930,200 Series A, 7.00%, 4/01/25 ................................................................... 6,000,000 5,633,400 Minneapolis Health Care Facility Revenue, Augustana Chapel View Homes, Series D, 5.875%, 6/01/35 ..................................... 5,075,000 5,092,103 Fairview Health Services, Series A, Pre-Refunded, 5.625%, 5/15/32 .......................... 18,380,000 21,148,395 Minneapolis Health Care Revenue, Fairview Health Services, AMBAC Insured, 5.00%, 11/15/30 .................................................................................... 8,200,000 8,700,200 Minnesota Agriculture and Economic Development Board Revenue, Health Care System, Refunding, Series A, 6.375%, 11/15/29 ...................................................... 175,000 198,415 Series A, Pre-Refunded, 6.375%, 11/15/29 ................................................... 6,325,000 7,381,971 Minnesota State HFAR, Rental Housing, Refunding, Series D, MBIA Insured, 5.95%, 2/01/18 ..................................................................................... 395,000 402,837 Roseville MFHR, Rosepointe I Project, Refunding, Series C, 8.00%, 12/01/29 .................... 3,240,000 3,433,525 St. Paul Housing and RDA Tax Increment Revenue, Energy Park Project, Series A, 8.625%, 9/01/07 ..................................................................................... 560,000 562,615 -------------- 97,617,254 -------------- MISSISSIPPI 0.6% Claiborne County PCR, Systems Energy Resources Inc., Refunding, 6.20%, 2/01/26 ................ 33,295,000 33,434,506 -------------- MISSOURI 0.6% Lake of the Ozarks Community Board Corp. Bridge System Revenue, Pre-Refunded, 6.25%, 12/01/16 .............................................................. 1,000,000 1,064,500 Pre-Refunded, 6.40%, 12/01/25 .............................................................. 3,000,000 3,213,630 Refunding, 5.25%, 12/01/20 ................................................................. 8,350,000 8,210,972 St. Louis County IDA Industrial Revenue, Kiel Center, Refunding, 7.625%, 12/01/09 ........................................................................... 8,000,000 8,039,520 7.75%, 12/01/13 ............................................................................ 5,175,000 5,208,172 7.875%, 12/01/24 ........................................................................... 6,000,000 6,037,140 West Plains IDA Hospital Revenue, Ozarks Medical Center, 6.30%, 11/15/11 ..................................................... 865,000 918,007 Ozarks Medical Center, 6.75%, 11/15/24 ..................................................... 1,870,000 1,951,046 Ozarks Medical Center Project, Refunding, 5.50%, 11/15/12 .................................. 500,000 507,260 -------------- 35,150,247 -------------- NEBRASKA 0.0%(c) Scotts Bluff County Hospital Authority No. 1 Hospital Revenue, Regional West Medical Center, 6.375%, 12/15/08 .................................................................... 1,145,000 1,147,576 -------------- NEVADA 3.2% Clark County ID Special Assessment, Special ID No. 132, Local Improvement, 6.875%, 2/01/21 ..................................... 3,925,000 4,067,791 Special ID No. 142, Local Improvement, 6.375%, 8/01/23 ..................................... 4,200,000 4,327,092 Clark County IDR, Nevada Power Co. Project, Refunding, Series B, 5.90%, 10/01/30 .............. 5,125,000 5,128,177
70 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) NEVADA (CONT.) Director of the State Department of Business and Industry Revenue, Las Vegas Monorail Project, Second Tier, 7.25%, 1/01/23 ............................................................................. $ 8,000,000 $ 8,467,200 7.375%, 1/01/30 ............................................................................ 9,000,000 9,513,810 7.375%, 1/01/40 ............................................................................ 49,750,000 52,317,597 Henderson Health Care Facility Revenue, Catholic Healthcare West, Series A, 5.625%, 7/01/24 ..................................................................................... 7,000,000 7,581,280 Henderson Local ID Special Assessment, No. T-12, Series A, 7.375%, 8/01/18 ........................................................ 42,050,000 45,280,702 No. T-16, 4.90%, 3/01/16 ................................................................... 1,390,000 1,411,976 No. T-16, 5.00%, 3/01/18 ................................................................... 1,000,000 1,017,350 No. T-16, 5.00%, 3/01/19 ................................................................... 1,000,000 1,012,730 No. T-16, 5.10%, 3/01/22 ................................................................... 1,500,000 1,523,115 No. T-16, 5.125%, 3/01/25 .................................................................. 1,580,000 1,600,698 No. T-2, 9.50%, 8/01/11 .................................................................... 1,215,000 1,216,385 No. T-4C, Green Valley, Refunding, Series A, 5.90%, 11/01/18 ............................... 3,085,000 3,187,823 Las Vegas Local Improvement Bonds Special Assessment, Special ID No. 404, Refunding, FSA Insured, 5.85%, 11/01/09 ................................ 2,840,000 2,874,676 Special ID No. 607, 6.25%, 6/01/24 ......................................................... 5,000,000 5,160,550 Special ID No. 808, Summerlin Area, 6.75%, 6/01/21 ......................................... 8,360,000 8,649,256 Las Vegas Special Assessment, ID No. 505, Elkhorn Springs, 8.00%, 9/15/13 ..................... 4,310,000 4,357,798 Nevada Housing Division Revenue, SF Program, Sub Series B-1, 7.90%, 10/01/05 ............................................................ 40,000 40,054 Sub Series C-1, 7.55%, 10/01/05 ............................................................ 50,000 50,014 Washoe County Revenue, Reno-Sparks Convention Center Project, FSA Insured, Pre-Refunded, 6.40%, 7/01/29 .............................................................................. 15,415,000 17,591,136 -------------- 186,377,210 -------------- NEW HAMPSHIRE 0.4% New Hampshire Higher Education and Health Facilities Authority Revenue, Hillcrest Terrace, 7.50%, 7/01/24 .......................................................... 16,850,000 17,385,662 Littleton Hospital Assn., Series B, 5.90%, 5/01/28 ......................................... 2,000,000 2,036,480 New Hampshire Catholic Charities, Refunding, Series A, 5.75%, 8/01/11 ...................... 1,300,000 1,328,444 -------------- 20,750,586 -------------- NEW JERSEY 5.0% Hudson County Improvement Authority Solid Waste Systems Revenue, Refunding, Series 1, 6.00%, 1/01/19 ................................................................... 2,180,000 2,208,536 Series 1, 6.00%, 1/01/29 ................................................................... 5,000,000 5,055,400 Series 2, 6.125%, 1/01/19 .................................................................. 2,125,000 2,163,377 Series 2, 6.125%, 1/01/29 .................................................................. 5,105,000 5,186,935 New Jersey EDA Lease Revenue, International Center for Public Health Project, University of Medicine and Dentistry, AMBAC Insured, 6.00%, 6/01/32 ....................................... 9,965,000 11,179,933 New Jersey EDA Revenue, Cigarette Tax, 5.50%, 6/15/24 .............................................................. 23,000,000 24,415,880 Cigarette Tax, 5.50%, 6/15/31 .............................................................. 6,500,000 6,810,830 Cigarette Tax, 5.75%, 6/15/34 .............................................................. 10,000,000 10,621,700
Quarterly Statements of Investments | 71 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) NEW JERSEY (CONT.) New Jersey EDA Revenue, (cont.) first mortgage, Keswick Pines, Refunding, 5.75%, 1/01/24 ................................... $ 1,500,000 $ 1,525,215 first mortgage, Presbyterian, Series A, 6.25%, 11/01/20 .................................... 7,635,000 7,965,061 New Jersey EDA Special Facility Revenue, Continental Airlines Inc. Project, 6.25%, 9/15/19 ............................................................................. 54,420,000 47,818,310 6.40%, 9/15/23 ............................................................................. 73,030,000 64,045,849 6.625%, 9/15/12 ............................................................................ 18,500,000 17,368,910 New Jersey Health Care Facilities Financing Authority Revenue, Lutheran Home, Series A, 8.40%, 7/01/19 .................................................... 2,100,000 2,103,486 South Jersey Hospital, 5.875%, 7/01/21 ..................................................... 7,500,000 8,001,825 South Jersey Hospital, 6.00%, 7/01/32 ...................................................... 18,000,000 19,260,180 Trinitas Hospital Obligation Group, Refunding, 7.50%, 7/01/30 .............................. 5,000,000 5,653,050 New Jersey State Turnpike Authority Turnpike Revenue, (b)Refunding, Series A, FSA Insured, 5.00%, 1/01/25 ........................................ 13,700,000 14,690,510 (b)Series C, FSA Insured, 5.00%, 1/01/35 ................................................... 10,535,000 11,219,354 Tobacco Settlement Financing Corp. Revenue, Asset Backed, Refunding, 6.00%, 6/01/37 ............................................................................. 10,000,000 10,142,300 6.125%, 6/01/42 ............................................................................ 9,050,000 9,269,282 -------------- 286,705,923 -------------- NEW MEXICO 2.5% Farmington PCR, Public Service Co. of New Mexico, San Juan Project, Refunding, Series A, 6.30%, 12/01/16 .................................................................................. 24,045,000 25,703,865 Public Service Co. of New Mexico, San Juan Project, Refunding, Series D, 6.375%, 4/01/22 ................................................................................... 66,125,000 71,277,460 Public Service Co. Project, Series A, 6.60%, 10/01/29 ...................................... 6,000,000 6,674,340 Tucson Electric Power Co., Series A, 6.95%, 10/01/20 ....................................... 37,000,000 39,005,400 -------------- 142,661,065 -------------- NEW YORK 9.2% Corinth IDA Environmental Improvement Revenue, International Paper Company Project, Refunding, Series A, 5.75%, 2/01/22 ......................................................... 2,000,000 2,094,340 MTA Revenue, Series A, MBIA Insured, 4.75%, 11/15/28 .......................................... 15,000,000 15,588,750 MTA Transit Facilities Revenue, Series A, MBIA Insured, Pre-Refunded, 5.875%, 7/01/27 ......... 22,700,000 24,420,206 New York City GO, Fiscal 2003, Series I, 5.00%, 3/01/24 ...................................................... 5,000,000 5,251,700 Fiscal 2003, Series I, 5.00%, 3/01/25 ...................................................... 9,000,000 9,440,910 Refunding, Series F, 6.00%, 8/01/11 ........................................................ 10,000,000 10,477,200 Refunding, Series H, 6.125%, 8/01/25 ....................................................... 4,710,000 5,020,813 Refunding, Series J, 6.00%, 8/01/21 ........................................................ 3,535,000 3,769,865 Series A, 6.125%, 8/01/06 .................................................................. 95,000 96,301 Series B, 7.00%, 2/01/18 ................................................................... 115,000 115,652 Series B, 6.00%, 8/15/26 ................................................................... 155,000 162,562 Series B, Pre-Refunded, 6.00%, 8/15/26 ..................................................... 4,845,000 5,100,913 Series D, 7.625%, 2/01/14 .................................................................. 5,000 5,030 Series F, 7.50%, 2/01/21 ................................................................... 85,000 85,503
72 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) NEW YORK (CONT.) New York City GO, (cont.) Series G, 7.50%, 2/01/22 ................................................................ $ 10,000 $ 10,059 Series G, Pre-Refunded, 6.125%, 10/15/11 ................................................ 20,480,000 22,195,200 Series G, Pre-Refunded, 6.20%, 10/15/14 ................................................. 10,000,000 10,854,500 Series H, 6.25%, 8/01/15 ................................................................ 20,435,000 21,920,625 Series H, Pre-Refunded, 6.25%, 8/01/15 .................................................. 4,565,000 4,930,793 Series H, Pre-Refunded, 6.125%, 8/01/25 ................................................. 890,000 959,002 Series I, 6.25%, 4/15/17 ................................................................ 35,000 37,221 Series I, 6.25%, 4/15/27 ................................................................ 330,000 350,945 Series I, Pre-Refunded, 6.25%, 4/15/17 .................................................. 25,335,000 27,162,920 Series I, Pre-Refunded, 6.25%, 4/15/27 .................................................. 22,590,000 24,219,869 Series J, Pre-Refunded, 6.00%, 8/01/21 .................................................. 6,465,000 6,949,422 (b)Series O, 5.00%, 6/01/33 ................................................................ 4,000,000 4,208,920 New York City IDA Civic Facility Revenue, Amboy Properties Corp. Project, Refunding, 6.75%, 6/01/20 .................................. 6,790,000 6,986,163 Series C, 6.80%, 6/01/28 ................................................................... 5,000,000 5,255,250 Staten Island University Hospital Project, Series C, 6.45%, 7/01/32 ........................ 1,495,000 1,516,408 New York City IDA Revenue, Liberty, 6.25%, 3/01/15 ............................................................................. 10,000,000 10,305,000 6.50%, 3/01/35 ............................................................................. 50,000,000 51,652,000 New York City IDA Special Facilities Revenue, American Airlines Inc. Project, 6.90%, 8/01/24 ............................................. 4,000,000 3,092,360 British Airways PLC Project, 7.625%, 12/01/32 .............................................. 15,000,000 16,849,500 JFK International Airport Project, Series A, 8.00%, 8/01/12 ................................ 74,000,000 67,257,120 New York City Municipal Water Finance Authority Water and Sewer System Revenue, Series C, 5.00%, 6/15/30 ................................................................... 15,000,000 15,936,150 Series E, 5.00%, 6/15/34 ................................................................... 10,000,000 10,491,900 New York State Dormitory Authority Revenues, City University System, Third General Residence, Series 2, Pre-Refunded, 6.00%, 7/01/26 ................................................................................... 6,100,000 6,425,374 Mental Health Services, Series A, Pre-Refunded, 6.00%, 8/15/17 ............................. 8,940,000 9,584,932 State University Educational Facilities, Pre-Refunded, 6.00%, 5/15/18 ...................... 5,000,000 5,249,650 Supported Debt, Mental Health Services, Series A, 6.00%, 8/15/17 ........................... 115,000 122,400 Supported Debt, Mental Health Services, Series A, Pre-Refunded, 6.00%, 8/15/17 ............. 2,185,000 2,342,626 New York State HFA Service Contract Obligation Revenue, Series A, 6.00%, 3/15/26 ............................................................................. 220,000 231,066 Pre-Refunded, 6.00%, 3/15/26 ............................................................... 4,755,000 5,041,394 New York State HFAR, Refunding, Series A, 5.90%, 11/01/05 ..................................... 12,515,000 12,672,439 New York State Mortgage Agency Revenue, Homeowners Mortgage, Series 61, 5.80%, 10/01/16 .................................................................................... 5,000,000 5,160,350 New York State Urban Development Corp. Revenue, Correctional Capital Facilities, Series 7, Pre-Refunded, 5.70%, 1/01/27 ................................................................ 4,750,000 5,053,478 Oneida County IDAR, Civic Facility, St. Elizabeth Medical, Series B, 6.00%, 12/01/19 .......... 1,000,000 1,004,260 Onondaga County IDA Solid Waste Disposal Facility Revenue, Solvay Paperboard LLC Project, Refunding, 6.80%, 11/01/14 ............................................................................ 5,000,000 5,322,650 7.00%, 11/01/30 ............................................................................ 7,000,000 7,436,170
Quarterly Statements of Investments | 73 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) NEW YORK (CONT.) Port Authority of New York and New Jersey Special Obligation Revenue, 3rd Installment, 7.00%, 10/01/07 ........................................................... $ 3,700,000 $ 3,822,248 4th Installment, Special Project, 6.75%, 10/01/11 .......................................... 925,000 978,789 5th Installment, 6.75%, 10/01/19 ........................................................... 17,500,000 18,531,625 Continental Airlines Inc., Eastern Project, La Guardia, 9.00%, 12/01/10 .................... 10,000,000 10,039,100 Continental Airlines Inc., Eastern Project, La Guardia, 9.125%, 12/01/15 ................... 27,650,000 27,773,596 Utica IDA Civic Facility Revenue, Utica College Civic Facility, 6.75%, 12/01/21 ............................................................................ 1,250,000 1,367,013 6.85%, 12/01/31 ............................................................................ 2,000,000 2,187,680 -------------- 525,117,912 -------------- NORTH CAROLINA 1.8% Charlotte Airport Revenue, Series A, MBIA Insured, 5.00%, 7/01/29 ............................. 15,310,000 16,202,267 North Carolina Eastern Municipal Power Agency Power System Revenue, Refunding, Series A, 5.75%, 1/01/26 ........................................................ 37,500,000 39,889,500 Refunding, Series B, 5.75%, 1/01/24 ........................................................ 35,750,000 38,089,480 Refunding, Series D, 6.75%, 1/01/26 ........................................................ 5,000,000 5,615,950 Series D, 6.70%, 1/01/19 ................................................................... 2,000,000 2,244,920 North Carolina HFAR, SF, Series II, FHA Insured, 6.20%, 3/01/16 .................................................................................... 1,220,000 1,255,063 9/01/17 .................................................................................... 830,000 853,422 -------------- 104,150,602 -------------- OHIO 1.8% Akron COP, Akron Municipal Baseball Stadium Project, Capital Appreciation, 6.30%, 12/01/05 ............................................................................ 1,700,000 1,722,542 6.40%, 12/01/06 ............................................................................ 1,685,000 1,753,798 6.50%, 12/01/07 ............................................................................ 670,000 699,674 6.90%, 12/01/16 ............................................................................ 2,500,000 2,672,850 Cuyahoga County Hospital Revenue, Refunding, 5.50%, 1/01/29 ................................... 11,500,000 12,215,185 Dayton Special Facilities Revenue, Emery Air Freight Corp., Emery Worldwide Air Inc., Refunding, Series C, 6.05%, 10/01/09 .................................................................. 14,250,000 15,847,995 Series E, 6.05%, 10/01/09 .................................................................. 5,250,000 5,838,735 Series F, 6.05%, 10/01/09 .................................................................. 1,000,000 1,112,140 Franklin County Health Care Facilities Revenue, Ohio Presbyterian, Series A, 7.125%, 7/01/29 ............................................... 1,000,000 1,113,110 Presbyterian Retirement Services, Refunding, 5.50%, 7/01/17 ................................ 3,100,000 3,172,788 Presbyterian Retirement Services, Refunding, 5.50%, 7/01/21 ................................ 950,000 961,685 Presbyterian Retirement Services, Series A, 6.625%, 7/01/13 ................................ 1,000,000 1,057,840 Lucas County Health Facilities Revenue, Presbyterian Retirement Services, Refunding, Series A, 6.625%, 7/01/14 ............................................................................ 1,000,000 1,056,000 6.75%, 7/01/20 ............................................................................. 2,000,000 2,098,180 Montgomery County Health System Revenue, Series B-1, Pre-Refunded, 8.10%, 7/01/18 ................................................... 5,695,000 6,089,749 Series B-2, Pre-Refunded, 8.10%, 7/01/18 ................................................... 4,505,000 4,837,469
74 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) OHIO (CONT.) Montgomery County Health System Revenue, (cont.) Series B-2, Pre-Refunded, 8.10%, 7/01/18 ................................................... $ 1,340,000 $ 1,414,290 St. Leonard, Series B, Pre-Refunded, 8.10%, 7/01/18 ........................................ 8,700,000 9,301,668 Ohio State Air Quality Development Authority Revenue, Dayton Power and Light Co. Project, Refunding, 6.10%, 9/01/30 .............................. 17,900,000 18,297,380 PCR, Cleveland Electric, Refunding, Series B, 6.00%, 8/01/20 ............................... 6,250,000 6,665,250 Toledo Lucas County Port Authority Airport Revenue, Bax Global Project, Refunding, Series 1, 6.25%, 11/01/13 ............................................................................. 4,300,000 4,432,870 Willoughby IDR, Presbyterian Retirement Services, Refunding, Series A, 6.875%, 7/01/16 ..................................................................................... 1,500,000 1,563,375 -------------- 103,924,573 -------------- OKLAHOMA 0.2% Oklahoma Development Finance Authority Revenue, Comanche County Hospital Project, Series B, 6.60%, 7/01/31 .................................................................... 5,000,000 5,546,650 Valley View Hospital Authority Revenue, Valley View Regional Medical Center, Refunding, 6.00%, 8/15/14 .............................................................................. 4,000,000 4,178,480 -------------- 9,725,130 -------------- OREGON 2.3% Klamath Falls Electric Revenue, Klamath Cogeneration Project, senior lien, 7.00%, 1/01/25 .................................. 12,600,000 13,574,484 Klamath Cogeneration, senior lien, Refunding, 5.75%, 1/01/13 ............................... 13,000,000 13,500,890 Klamath Cogeneration, senior lien, Refunding, 5.875%, 1/01/16 .............................. 19,650,000 20,169,350 Klamath Cogeneration, senior lien, Refunding, 6.00%, 1/01/25 ............................... 66,060,000 67,086,572 Oregon State Department of Administrative Services COP, Series A, AMBAC Insured, Pre-Refunded, 6.00%, 5/01/26 ................................................................ 9,400,000 10,727,374 Oregon State Health Housing Educational and Cultural Facilities Authority Revenue, Linfield College Project, Series A, 6.75%, 10/01/25 .................................................. 5,220,000 5,824,789 -------------- 130,883,459 -------------- PENNSYLVANIA 5.9% Allegheny County Hospital Development Authority Revenue, Health System, Series A, MBIA Insured, 6.50%, 11/15/30 .................................................... 10,000,000 11,740,400 Series B, 8.65%, 11/15/05 .................................................................. 2,000,000 2,036,080 Series B, 9.25%, 11/15/15 .................................................................. 24,000,000 29,230,800 Series B, 9.25%, 11/15/22 .................................................................. 24,000,000 29,102,160 Allegheny County IDAR, Environmental Improvement, USX Corp., Refunding, 6.10%, 7/15/20 ............................................................................. 5,500,000 5,828,405 Series A, 6.70%, 12/01/20 .................................................................. 9,400,000 9,550,400 Carbon County IDAR, Panther Creek Partner Project, Refunding, 6.65%, 5/01/10 .................. 3,125,000 3,371,187 Chartiers Valley Industrial and Commercial Development Authority First Mortgage Revenue, Asbury Health Center Project, Refunding, 7.40%, 12/01/15 .................................... 5,250,000 5,370,855 Delaware County IDAR, Resource Recovery Facility, Refunding, Series A, 6.10%, 1/01/06 ............................................................................. 2,140,000 2,167,906 6.50%, 1/01/08 ............................................................................. 425,000 444,609 6.10%, 7/01/13 ............................................................................. 20,500,000 21,525,410 6.20%, 7/01/19 ............................................................................. 9,500,000 9,889,975
Quarterly Statements of Investments | 75 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) PENNSYLVANIA (CONT.) Lancaster IDAR, Garden Spot Village Project, Series A, 7.625%, 5/01/31 ........................ $ 1,650,000 $ 1,805,677 Lehigh County IDA, PCR, Pennsylvania Power and Light Co. Project, Refunding, Series A, MBIA Insured, Pre-Refunded, 6.15%, 8/01/29 ............................................................... 4,000,000 4,100,880 Pennsylvania Power and Light Electrical Utilities Corp. Project, Refunding, Series A, FGIC Insured, 4.70%, 9/01/29 .............................................................. 19,000,000 19,340,860 Pennsylvania Convention Center Authority Revenue, Refunding, Series A, 6.60%, 9/01/09 ............................................................................. 16,000,000 16,328,800 6.70%, 9/01/14 ............................................................................. 20,760,000 21,191,808 6.75%, 9/01/19 ............................................................................. 15,800,000 16,130,536 Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue, Reliant Energy Seward, Series A, 6.75%, 12/01/36 .................................................... 65,000,000 69,929,600 Pennsylvania EDA Financing Resources Recovery Revenue, Colver Project, Series D, 7.125%, 12/01/15 .................................................................................... 10,000,000 10,405,000 Pennsylvania State Higher Educational Facilities Authority Health Services Revenue, Allegheny Delaware Valley Obligation Group, Series A, MBIA Insured, 5.875%, 11/15/16 ................... 13,000,000 13,645,840 Philadelphia IDA Health Care Facility Revenue, Pauls Run, Series A, 5.85%, 5/15/13 ............ 2,200,000 2,264,526 Sayre Health Care Facilities Authority Revenue, Guthrie Health, Series A, 5.75%, 12/01/21 .................................................................................... 3,000,000 3,245,700 South Fork Municipal Authority Hospital Revenue, Conemaugh Valley Memorial Hospital Project, Series A, MBIA Insured, 5.75%, 7/01/16 ............................................. 8,130,000 8,515,525 State Public School Building Authority School Revenue, Philadelphia School District Project, FSA Insured, 5.00%, 6/01/33 ................................................................. 13,750,000 14,442,725 Washington County IDA, PCR, West Pennsylvania Power Co., Series G, AMBAC Insured, 6.05%, 4/01/14 .............................................................................. 5,025,000 5,152,535 -------------- 336,758,199 -------------- RHODE ISLAND 0.3% Rhode Island State Health and Educational Building Corp. Revenue, Hospital Financing, Lifespan Obligation Group, 6.50%, 8/15/32 .............................. 8,000,000 8,984,480 Hospital Financing, Lifespan Obligation Group, MBIA Insured, 5.75%, 5/15/23 ................ 3,500,000 3,729,005 Landmark Medical Center, Radian Insured, 5.875%, 10/01/19 .................................. 6,000,000 6,071,340 -------------- 18,784,825 -------------- SOUTH CAROLINA 0.8% Dorchester County School District No. 002 Installment Purchase Revenue, Growth Remedy Opportunities Tax Hike, 5.25%, 12/01/29 ..................................................... 16,500,000 17,421,525 Greenville County School District Installment Purchase Revenue, Building Equity Sooner Tomorrow, Refunding, 5.00%, 12/01/28 ........................................................ 10,000,000 10,398,500 Lancaster Educational Assistance Program Inc. Revenue, School District of Lancaster County Project, 5.00%, 12/01/26 .................................................................... 15,015,000 15,507,792 Tobacco Settlement Revenue Management Authority Tobacco Settlement Revenue, Series B, 6.375%, 5/15/30 ............................................................................. 3,750,000 4,084,650 -------------- 47,412,467 --------------
76 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) TENNESSEE 0.1% Hallsdale-Powell Utility District Knox County Water and Sewer Revenue, Refunding and Improvement, Series A, FGIC Insured, 5.00%, 4/01/34 ......................................... $ 5,000,000 $ 5,254,000 -------------- TEXAS 2.0% Alliance Airport Authority Special Facilities Revenue, American Airlines Inc. Project, 7.50%, 12/01/29 .................................................................................... 15,500,000 12,849,035 Angelina and Neches River Authority Waste Disposal Revenue, Adjusted Temple Inland Forest Products, 6.95%, 5/01/23 .................................................................... 1,750,000 1,970,990 Austin Convention Enterprises Inc. Convention Center Revenue, First Tier, Series A, 6.70%, 1/01/32 ..................................................................................... 10,000,000 10,813,000 Bexar County Health Facilities Development Corp. Revenue, Incarnate Word Health Services, FSA Insured, ETM, 6.00%, 11/15/15 ........................................................... 8,750,000 9,078,387 Brazos River Authority PCR, TXU Energy Co. Project, Refunding, Series B, 6.30%, 7/01/32 ..................................................................................... 9,000,000 9,779,670 Coppell Special Assessment, Gateway Project, 8.70%, 3/01/12 ................................... 2,515,000 2,528,631 Decatur Hospital Authority Hospital Revenue, Series A, ETM, 5.75%, 9/01/29 .................... 4,870,000 5,610,776 El Paso Health Facilities Development Corp. Revenue, Senior Care Facilities, Bienvivir Senior Health, 7.00%, 8/15/12 ............................................................................. 955,000 1,034,399 7.50%, 8/15/18 ............................................................................. 2,300,000 2,521,812 7.75%, 8/15/31 ............................................................................. 3,000,000 3,296,580 Georgetown Health Facilities Development Corp. Revenue, Georgetown Healthcare System, Refunding, 6.25%, 8/15/29 ................................................................... 10,975,000 11,239,388 Matagorda County Naval District No. 1 Revenue, Centerpoint Energy Project, Refunding, 5.60%, 3/01/27 .............................................................................. 11,000,000 11,520,520 Nueces River Authority Environmental Improvement Revenue, Asarco Inc. Project, Refunding, 5.60%, 1/01/27 ............................................................................. 8,640,000 8,204,371 Series A, 5.60%, 4/01/18 ................................................................... 4,500,000 4,324,545 Sabine River Authority PCR, Southwestern Electric Power Co., Refunding, MBIA Insured, 6.10%, 4/01/18 ................... 7,000,000 7,316,470 TXU Energy Co. LLC Project, Refunding, Series A, 5.80%, 7/01/22 ............................ 1,000,000 1,078,660 TXU Energy Co. LLC Project, Refunding, Series B, 6.15%, 8/01/22 ............................ 3,000,000 3,308,070 Texas State GO, Veterans Housing Assistance, Fund I, Refunding, Series A, 6.15%, 12/01/25 .................................................................................... 7,430,000 7,614,338 -------------- 114,089,642 -------------- U.S. TERRITORIES 4.0% Children's Trust Fund Puerto Rico Tobacco Settlement Revenue, Asset Backed Bonds, Refunding, 5.50%, 5/15/39 .............................................. 11,500,000 11,598,670 Asset-Backed Bonds, Refunding, 5.625%, 5/15/43 ............................................. 3,500,000 3,524,885 District of Columbia GO, Refunding, Series A, 5.875%, 6/01/05 ....................................................... 2,355,000 2,355,000 Refunding, Series A, 6.00%, 6/01/07 ........................................................ 8,930,000 9,212,456 Series A, ETM, 6.00%, 6/01/07 .............................................................. 2,845,000 2,940,507 Series A, Pre-Refunded, 6.375%, 6/01/11 .................................................... 22,770,000 24,010,510 Series A, Pre-Refunded, 6.375%, 6/01/16 .................................................... 27,230,000 28,713,490
Quarterly Statements of Investments | 77 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) U.S. TERRITORIES (CONT.) District of Columbia Hospital Revenue, Medlantic Healthcare Group, Refunding, Series A, MBIA Insured, ETM, 5.875%, 8/15/19 .......................................................... $ 8,850,000 $ 9,337,546 District of Columbia Revenue, Carnegie Endowment, 5.75%, 11/15/26 ........................................................ 5,410,000 5,647,120 Methodist Home Issue, 6.00%, 1/01/29 ....................................................... 4,750,000 4,570,308 District of Columbia Tobacco Settlement Financing Corp. Revenue, Asset Backed Bonds, 6.50%, 5/15/33 .............................................................................. 22,000,000 24,117,060 Northern Mariana Islands Commonwealth Ports Authority Airport Revenue, senior lien, Series A, 6.25%, 3/15/28 .................................................................... 8,720,000 9,128,183 Northern Mariana Islands Commonwealth Ports Authority Seaport Revenue, Series A, 6.60%, 3/15/28 ..................................................................................... 8,165,000 8,962,231 Puerto Rico Commonwealth GO, Public Improvement, Series A, 5.00%, 7/01/34 ..................... 20,000,000 20,889,400 Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Series J, 5.00%, 7/01/34 .................................................................... 11,500,000 12,064,075 Puerto Rico Electric Power Authority Power Revenue, Series NN, 5.125%, 7/01/29 ................ 11,500,000 12,221,970 Virgin Islands PFAR, sub. lien, Fund Loan Notes, Refunding, Series E, 5.75%, 10/01/13 ............................................................................ 15,000,000 15,453,150 5.875%, 10/01/18 ........................................................................... 7,000,000 7,279,370 6.00%, 10/01/22 ............................................................................ 14,500,000 15,047,810 -------------- 227,073,741 -------------- UTAH 0.0%(c) Carbon County Solid Waste Disposal Revenue, Laidlaw Environmental Services, Refunding, Series A, 7.45%, 7/01/17 .................................................................... 2,500,000 2,596,175 -------------- VERMONT 0.3% Vermont Educational and Health Buildings Financing Agency Revenue, Fletcher Allen Health, Series A, AMBAC Insured, 6.00%, 12/01/23 ..................................................... 15,000,000 16,927,500 -------------- VIRGINIA 0.9% Fairfax County EDA Transportation Contract Revenue, Route 28 Project, MBIA Insured, 5.00%, 4/01/33 ..................................................................................... 5,000,000 5,296,000 Greater Richmond Convention Center Authority Hotel Tax Revenue, Refunding, MBIA Insured, 5.00%, 6/15/30 .............................................................................. 12,255,000 13,050,840 James City County EDA Residential Care Facility Revenue, first mortgage, Williamsburg Landing, Series A, (b)5.35%, 9/01/26 ........................................................................... 750,000 757,597 (b)5.50%, 9/01/34 ........................................................................... 750,000 756,953 Peninsula Ports Authority Coalition Terminal Revenue, Dominion Terminal Associates, Refunding, 6.00%, 4/01/33 ................................................................... 9,000,000 9,820,800 Tobacco Settlement Financing Corp. Revenue, Asset Backed, 5.50%, 6/01/26 ............................................................................. 2,500,000 2,496,900 5.625%, 6/01/37 ............................................................................ 3,000,000 2,985,000 Virginia Beach Development Authority Residential Care Facility Mortgage Revenue, Westminster Canterbury Project, Series A, 7.125%, 11/01/23 ........................................................................... 5,000,000 5,444,150 7.25%, 11/01/32 ............................................................................ 9,000,000 9,802,350 -------------- 50,410,590 --------------
78 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) WEST VIRGINIA 0.2% West Virginia University Revenues, Improvement, West Virginia University Projects, Series C, FGIC Insured, 5.00%, 10/01/34 ............................................................... $10,000,000 $ 10,572,000 -------------- WISCONSIN 0.5% Green Bay Water System Revenue, Refunding and Improvement, FSA Insured, 5.00%, 11/01/29 .................................................................................... 5,000,000 5,300,150 Kaukauna Environmental Improvement Revenue, International Paper Co. Project, Series A, 6.70%, 5/01/24 .............................................................................. 4,100,000 4,430,296 Wisconsin State Health and Educational Facilities Authority Revenue, Fort Healthcare Inc. Project, 5.75%, 5/01/24 ............................................... 5,000,000 5,322,200 Franciscan Skemp Medical Center Inc. Project, 6.25%, 11/15/20 .............................. 9,510,000 9,824,401 New Castle Place Project, Series A, 7.00%, 12/01/31 ........................................ 2,500,000 2,616,925 -------------- 27,493,972 -------------- WYOMING 0.2% Sweetwater County PCR, Idaho Power Co. Project, Refunding, Series A, 6.05%, 7/15/26 ........... 10,500,000 11,050,620 -------------- TOTAL BONDS (COST $4,752,188,057) ............................................................. 4,988,730,561 -------------- ZERO COUPON/STEP-UP BONDS 7.9% CALIFORNIA 6.5% Foothill/Eastern Corridor Agency Toll Road Revenue, Capital Appreciation, Refunding, 1/15/22 ................................................... 49,115,000 18,942,673 Capital Appreciation, Refunding, 1/15/31 ................................................... 4,000,000 887,600 Capital Appreciation, Refunding, 1/15/34 ................................................... 4,500,000 831,240 Capital Appreciation, Refunding, 1/15/36 ................................................... 4,000,000 653,520 Convertible Capital Appreciation, Refunding, 1/15/23 ....................................... 35,000,000 29,828,400 San Francisco City and County RDA Lease Revenue, George R. Moscone Center, 7/01/09 .................................................................................... 3,750,000 3,248,737 7/01/10 .................................................................................... 4,500,000 3,746,835 7/01/12 .................................................................................... 4,500,000 3,447,495 7/01/13 .................................................................................... 4,250,000 3,093,703 7/01/14 .................................................................................... 2,250,000 1,559,363 San Joaquin Hills Transportation Corridor Agency Toll Road Revenue, Capital Appreciation, Refunding, Series A, zero cpn. to 1/15/07, 5.60% thereafter, 1/15/16 ................................................................................... 22,500,000 20,719,575 Capital Appreciation, Refunding, Series A, zero cpn. to 1/15/07, 5.65% thereafter, 1/15/17 ................................................................................... 20,000,000 18,327,400 junior lien, ETM, 1/01/06 .................................................................. 9,000,000 8,857,530 junior lien, ETM, 1/01/07 .................................................................. 9,400,000 8,978,316 junior lien, ETM, 1/01/08 .................................................................. 10,400,000 9,631,544 junior lien, ETM, 1/01/09 .................................................................. 21,800,000 19,411,374 junior lien, ETM, 1/01/10 .................................................................. 15,000,000 12,901,200 junior lien, ETM, 1/01/12 .................................................................. 30,100,000 23,741,977 junior lien, ETM, 1/01/24 .................................................................. 52,700,000 23,138,989 junior lien, ETM, 1/01/25 .................................................................. 45,200,000 18,805,008 junior lien, ETM, 1/01/26 .................................................................. 131,900,000 52,155,898 junior lien, ETM, 1/01/27 .................................................................. 139,100,000 52,245,960
Quarterly Statements of Investments | 79 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) ZERO COUPON/STEP-UP BONDS (CONT.) CALIFORNIA (CONT.) San Joaquin Hills Transportation Corridor Agency Toll Road Revenue, (cont.) senior lien, Refunding, Series A, 1/15/23 .................................................. $20,000,000 $ 18,075,200 senior lien, Refunding, Series A, 1/15/24 .................................................. 20,000,000 17,959,000 -------------- 371,188,537 -------------- COLORADO 0.2% E-470 Public Highway Authority Revenue, Capital Appreciation, Series A, MBIA Insured, 9/01/28 ............................................................ 15,000,000 4,857,600 Series B, MBIA Insured, 9/01/29 ............................................................ 10,000,000 2,785,900 Series B, MBIA Insured, 9/01/30 ............................................................ 17,300,000 4,538,309 Series B, MBIA Insured, 9/01/31 ............................................................ 10,000,000 2,469,700 -------------- 14,651,509 -------------- KENTUCKY 0.5% Kentucky Economic Development Finance Authority Health System Revenue, Norton Healthcare Inc., Series C, MBIA Insured, zero cpn. to 10/01/05, 6.10% thereafter, 10/01/22 ................................................................. 15,975,000 17,624,259 6.15% thereafter, 10/01/27 ................................................................. 10,000,000 10,925,000 -------------- 28,549,259 -------------- NEW YORK 0.0%(c) MAC for City of Troy Revenue, Capital Appreciation, Series C, MBIA Insured, 7/15/21 .................................................................................... 428,010 216,290 1/15/22 .................................................................................... 649,658 318,820 -------------- 535,110 -------------- TENNESSEE 0.5% Johnson City Health and Educational Facilities Board Hospital Revenue, first mortgage, Mountain States Health, Refunding, Series A, MBIA Insured, 7/01/27 .................................................................................... 19,365,000 6,751,607 7/01/28 .................................................................................... 19,400,000 6,405,104 7/01/29 .................................................................................... 19,365,000 6,050,982 7/01/30 .................................................................................... 19,370,000 5,724,997 Knox County Health Educational and Housing Facilities Board Hospital Facilities Revenue, Capital Appreciation, Refunding and Improvement, Series A, FSA Insured, 1/01/25 .................................................................................... 5,000,000 1,717,250 1/01/26 .................................................................................... 2,610,000 840,446 -------------- 27,490,386 -------------- TEXAS 0.2% Texas State Turnpike Authority Revenue, Capital Appreciation, AMBAC Insured, 8/15/32 .......... 51,000,000 11,075,670 -------------- TOTAL ZERO COUPON/STEP-UP BONDS (COST $330,542,907) ........................................... 453,490,471 -------------- TOTAL LONG TERM INVESTMENTS (COST $5,082,730,964) ............................................. 5,442,221,032 --------------
80 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM INVESTMENTS 4.6% BONDS 4.6% ALABAMA 0.3% (d)West Jefferson IDB, PCR, Alabama Power Co. Project, Refunding, Daily VRDN and Put, 2.95%, 6/01/28 .............................................................................. $16,200,000 $ 16,200,000 -------------- CALIFORNIA 0.7% (d)California State Department of Water Resources Power Supply Revenue, Series B-3, Daily VRDN and Put, 2.93%, 5/01/22 ............................................. 3,700,000 3,700,000 Series C-7, FSA Insured, Weekly VRDN and Put, 2.91%, 5/01/22 ............................... 4,800,000 4,800,000 (d)California State Economic Recovery Revenue, Series C-3, Daily VRDN and Put, 2.89%, 7/01/23 ..................................................................................... 2,600,000 2,600,000 (d)California State GO, Kindergarten University, Series A-5, Daily VRDN and Put, 2.93%, 5/01/34 ............................................. 10,575,000 10,575,000 Series B-3, Daily VRDN and Put, 2.45%, 5/01/34 ............................................. 1,000,000 1,000,000 (d)Infrastructure and Economic Development Bank Insured Revenue, Rand Corp., Series B, AMBAC Insured, Daily VRDN and Put, 2.93%, 4/01/42 ........................................... 7,000,000 7,000,000 (d)Metropolitan Water District Southern California Waterworks Revenue, Refunding, Series B-1, Daily VRDN and Put, 2.93%, 7/01/35 .................................. 8,000,000 8,000,000 Series C-2, Daily VRDN and Put, 2.93%, 7/01/36 ............................................. 4,500,000 4,500,000 -------------- 42,175,000 -------------- FLORIDA 0.1% (d)Pinellas County Health Facilities Authority Revenue, Pooled Hospital Loan Program, Refunding, AMBAC Insured, Daily VRDN and Put, 2.97%, 12/01/15 ............................... 7,800,000 7,800,000 -------------- GEORGIA 0.3% (d)Athens-Clarke County Unified Government Authority Revenue, University of Georgia Athletic Assn. Project, Daily VRDN and Put, 2.98%, 8/01/33 ........................................... 1,900,000 1,900,000 (d)Atlanta Water and Wastewater Revenue, Series C, FSA Insured, Daily VRDN and Put, 2.97%, 11/01/41 .................................................................................... 3,700,000 3,700,000 (d)Hapeville IDAR, Hapeville Hotel Ltd., Daily VRDN and Put, 2.92%, 11/01/15 ..................... 11,800,000 11,800,000 -------------- 17,400,000 -------------- LOUISIANA 0.1% (d)Louisiana Public Facilities Authority Revenue, Kenner Hotel Ltd., Daily VRDN and Put, 2.92%, 12/01/15 .................................................................................... 2,600,000 2,600,000 (d)Louisiana State Offshore Terminal Authority Deepwater Port Revenue, Loop Inc. Project, First Stage, ACES, Refunding, Daily VRDN and Put, 2.97%, 9/01/17 .................................. 2,200,000 2,200,000 -------------- 4,800,000 -------------- MARYLAND 0.1% (d)Maryland State EDC Revenue, U.S. Pharmacopeial Project, Series A, AMBAC Insured, Daily VRDN and Put, 2.97%, 7/01/34 ................................................................ 5,125,000 5,125,000 -------------- MICHIGAN 0.3% (d)Detroit Sewage Disposal Revenue, senior lien, Series B, FSA Insured, Daily VRDN and Put, 2.97%, 7/01/33 .............................................................................. 13,300,000 13,300,000 (d)Michigan State University Revenues, Series A, Daily VRDN and Put, 2.97%, 8/15/32 .............. 400,000 400,000 -------------- 13,700,000 -------------- MISSOURI 0.0%(c) (d)Missouri State Health and Educational Facilities Authority Educational Facilities Revenue, Washington University, Series B, Daily VRDN and Put, 2.96%, 2/15/33 ......................... 2,000,000 2,000,000 --------------
Quarterly Statements of Investments | 81 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM INVESTMENTS (CONT.) BONDS (CONT.) NEW MEXICO 0.0%(c) (d)Farmington PCR, Arizona Public Service Co., Refunding, Series B, Daily VRDN and Put, 2.97%, 9/01/24 .............................................................................. $ 1,450,000 $ 1,450,000 -------------- NEW YORK 2.1% (d)Jay Street Development Corp. Courts Facility Lease Revenue, Jay Street Project, Series A, Daily VRDN and Put, 2.94%, 5/01/22 ............................................... 6,200,000 6,200,000 Series A-4, Daily VRDN and Put, 2.94%, 5/01/22 ............................................. 7,675,000 7,675,000 (d)Long Island Power Authority Electric System Revenue, Sub Series 2, Daily VRDN and Put, 2.94%, 5/01/33 ........................................... 21,500,000 21,500,000 Sub Series 3B, Daily VRDN and Put, 2.94%, 5/01/33 .......................................... 18,300,000 18,300,000 (d)New York City GO, Refunding, Series H, FSA Insured, Daily VRDN and Put, 2.94%, 8/01/19 ....................... 3,000,000 3,000,000 Refunding, Series H, Sub Series H-3, Daily VRDN and Put, 2.94%, 8/01/20 .................... 1,000,000 1,000,000 Series B, Sub Series B-5, MBIA Insured, Daily VRDN and Put, 2.93%, 8/15/09 ................. 7,000,000 7,000,000 Series B, Sub Series B-5, MBIA Insured, Daily VRDN and Put, 2.93%, 8/15/22 ................. 4,500,000 4,500,000 Sub Series A-7, Daily VRDN and Put, 2.94%, 8/01/20 ......................................... 5,700,000 5,700,000 Sub Series A-7, Daily VRDN and Put, 2.94%, 8/01/21 ......................................... 1,900,000 1,900,000 Sub Series E-3, Daily VRDN and Put, 2.94%, 8/01/23 ......................................... 5,000,000 5,000,000 Sub Series H-4, Daily VRDN and Put, 2.94%, 3/01/34 ......................................... 3,800,000 3,800,000 (d)New York City IDAR, Liberty, 1 Bryant Park LLC, Series B, Daily VRDN and Put, 2.99%, 11/01/39 .................................................................................... 4,600,000 4,600,000 (d)New York City Municipal Water Finance Authority Water and Sewer System Revenue, Fiscal 2003, Refunding, Sub Series C-3, Daily VRDN and Put, 2.94%, 6/15/18 ................. 18,300,000 18,300,000 Series G, FGIC Insured, Daily VRDN and Put, 2.94%, 6/15/24 ................................. 9,300,000 9,300,000 -------------- 117,775,000 -------------- OHIO 0.0%(c) (d)Ohio State Air Quality Development Authority Revenue, Pollution Control, Ohio Edison Co., Series C, Daily VRDN and Put, 2.98%, 6/01/23 ................................................ 1,900,000 1,900,000 -------------- RHODE ISLAND 0.0%(c) (d)Rhode Island Health and Educational Building Corp. Educational Institution Revenue, Portsmouth Abbey School, Daily VRDN and Put, 2.98%, 10/01/31 ................................ 1,800,000 1,800,000 -------------- TENNESSEE 0.5% (d)Clarksville PBA Revenue, Pooled Financing, Tennessee Municipal Bond Fund, Daily VRDN and Put, 2.98%, 7/01/31 .................................................................................... 15,100,000 15,100,000 1/01/33 .................................................................................... 3,985,000 3,985,000 7/01/34 .................................................................................... 2,600,000 2,600,000 (d)Knox County Health Educational and Housing Facility Board Student Housing Revenue, Volunteer Student Housing LLC Project, Weekly VRDN and Put, 2.97%, 9/01/34 .................. 2,200,000 2,200,000 (d)Montgomery County PBA Pooled Financing Revenue, Tennessee County Loan Pool, Daily VRDN and Put, 2.98%, 4/01/32 ..................................................................... 2,865,000 2,865,000 -------------- 26,750,000 --------------
82 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM INVESTMENTS (CONT.) BONDS (CONT.) VIRGINIA 0.1% (d)Roanoke IDA, Hospital Revenue, Carilion Health System, Refunding, Series D, Daily VRDN and Put, 2.97%, 7/01/27 ..................................................................... $ 2,300,000 $ 2,300,000 -------------- TOTAL SHORT TERM INVESTMENTS (COST $261,175,000) .............................................. 261,175,000 -------------- TOTAL INVESTMENTS (COST $5,343,905,964) 99.5% ................................................. 5,703,396,032 OTHER ASSETS, LESS LIABILITIES 0.5% ........................................................... 26,840,272 -------------- NET ASSETS 100.0% ............................................................................. $5,730,236,304 ==============
See Selected Portfolio Abbreviations on page 180. (a) Defaulted securities. (b) Security purchased on a when-issued or delayed delivery basis. (c) Rounds to less than 0.05% of net assets. (d) Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. Quarterly Statements of Investments | See Notes to Statements of Investments. | 83 This page intentionally left blank. 84 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 99.2% BONDS 97.7% ALABAMA 5.4% Alabama Drinking Water Finance Authority Revenue, Revolving Fund Loan, Series A, AMBAC Insured, 5.25%, 8/15/21 ............................................................... $ 2,490,000 $ 2,697,068 Anniston Regional Medical Center Board Revenue, Series A, AMBAC Insured, 5.25%, 6/01/18 ..................................................................................... 5,000,000 5,385,900 Bessemer Governmental Utility Services Corp. Water Supply Revenue, MBIA Insured, 5.25%, 6/01/32 ..................................................................................... 5,000,000 5,338,300 Bessemer, wts., XLCA Insured, 5.00%, 2/01/35 .................................................. 2,000,000 2,113,340 Birmingham GO, Refunding and Capital Improvement, Series B, AMBAC Insured, 5.00%, 12/01/32 .................................................................................... 3,000,000 3,139,200 Daphne Utilities Board Water Gas and Sewer Revenue, Series B, AMBAC Insured, 5.50%, 6/01/30 ..................................................................................... 1,670,000 1,816,643 East Alabama Health Care Authority Health Care Facilities Revenue, Tax Anticipation Bond, Series A, MBIA Insured, 5.25%, 9/01/28 ...................................................... 7,000,000 7,346,710 Helena Utilities Board Water and Sewer Revenue, MBIA Insured, 5.25%, 4/01/27 .................................................................................... 3,260,000 3,517,964 4/01/33 .................................................................................... 4,890,000 5,240,613 Jefferson County Sewer Revenue, Capital Improvement, wts., Series A, FGIC Insured, Pre-Refunded, 5.125%, 2/01/29 ........... 22,050,000 23,756,450 Series D, FGIC Insured, Pre-Refunded, 5.00%, 2/01/32 ....................................... 12,690,000 14,055,317 wts., Series D, FGIC Insured, Pre-Refunded, 5.75%, 2/01/22 ................................. 5,000,000 5,277,483 Montgomery Medical Clinic Board Health Care Facilities Revenue, Jackson Hospital and Clinic, Refunding, AMBAC Insured, 6.00%, 3/01/26 .................................................... 4,000,000 4,163,880 Muscle Shoals GO, wts., MBIA Insured, 5.50%, 8/01/30 .......................................... 2,000,000 2,192,800 Orange Beach Water Sewer and Fire Protection Authority Revenue, MBIA Insured, 5.00%, 5/15/35 ..................................................................................... 3,665,000 3,876,910 University of Alabama General Revenue, Series A, MBIA Insured, 5.00%, 7/01/34 ................. 3,000,000 3,165,600 University of Alabama University Revenues, FGIC Insured, 5.25%, 10/01/27 ...................... 5,975,000 6,374,787 -------------- 99,458,965 -------------- ALASKA 0.7% Alaska Energy Authority Power Revenue, Bradley Lake Project, BIG Insured, 6.25%, 7/01/21 ..................................................................................... 5,000 5,015 Alaska Energy Authority Utilities Revenue, Refunding, FSA Insured, 5.20%, 7/01/17 ............. 3,000,000 3,188,940 Alaska Industrial Development and Export Authority Revenue, Revolving Fund, Refunding, Series A, MBIA Insured, 6.125%, 4/01/27 ..................................................... 5,000,000 5,340,600 Alaska State HFC Revenue, Refunding, Series A, MBIA Insured, 6.00%, 6/01/27 ............................................................................. 5,000,000 5,067,250 5.875%, 12/01/30 ........................................................................... 215,000 220,528 -------------- 13,822,333 -------------- ARIZONA 2.6% Arizona State Municipal Financing Program COP, Series 1986-20, BIG Insured, ETM, 7.70%, 8/01/10 ..................................................................................... 6,000,000 6,965,160 Cochise County USD No. 68 GO, Sierra Vista, Refunding, FGIC Insured, 7.50%, 7/01/10 ........... 500,000 602,350 Maricopa County IDA Hospital Facility Revenue, Samaritan Health Services, Refunding, Series A, MBIA Insured, ETM, 7.00%, 12/01/16 ................................................ 300,000 381,171
Quarterly Statements of Investments | 85 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) ARIZONA (CONT.) Mesa IDAR, Discovery Health System, Series A, MBIA Insured, Pre-Refunded, 5.75%, 1/01/25 ............................................................................. $18,000,000 $ 20,201,580 5.625%, 1/01/29 ............................................................................ 12,655,000 14,135,762 Tucson Water Revenue, Series 1994-A, MBIA Insured, Pre-Refunded, 6.00%, 7/01/21 ............... 5,000,000 5,218,200 -------------- 47,504,223 -------------- ARKANSAS 1.2% Arkansas State Development Finance Authority Water Revenue, Refunding, Series A, MBIA Insured, 6.50%, 7/01/10 ................................................................ 2,000,000 2,202,320 Little Rock School District GO, Refunding, Series B, FSA Insured, 5.50%, 2/01/33 ........................................... 3,970,000 4,292,602 Series C, FSA Insured, 5.25%, 2/01/33 ...................................................... 7,790,000 8,242,132 Paragould Water and Electric Revenue, AMBAC Insured, 5.65%, 12/01/25 .......................... 1,000,000 1,102,940 Pulaski Technical College Revenue, Student Tuition and Fee, FGIC Insured, 5.00%, 9/01/34 ..................................................................................... 2,190,000 2,283,031 University of Arkansas University Revenues, Various Facility, Fayetteville Campus, FGIC Insured, 5.00%, 12/01/32 ............................................................... 4,000,000 4,190,800 -------------- 22,313,825 -------------- CALIFORNIA 3.2% California State GO, AMBAC Insured, 5.00%, 2/01/33 .............................................................. 7,000,000 7,373,240 Refunding, AMBAC Insured, 5.00%, 2/01/32 ................................................... 4,750,000 4,965,745 Refunding, MBIA Insured, 5.00%, 2/01/31 .................................................... 20,000,000 21,037,800 Refunding, MBIA Insured, 5.00%, 10/01/32 ................................................... 1,910,000 2,004,182 Corona COP, Corona Community Hospital Project, Pre-Refunded, 9.425%, 9/01/20 .................. 15,000,000 19,297,350 Oakland RDA Tax Allocation, Central District Redevelopment, Refunding, AMBAC Insured, 5.50%, 2/01/14 .............................................................................. 250,000 286,465 San Francisco BART District Sales Tax Revenue, FGIC Insured, 5.50%, 7/01/20 ................... 1,035,000 1,047,907 San Joaquin Hills Transportation Corridor Agency Toll Road Revenue, Refunding, Series A, MBIA Insured, 5.25%, 1/15/30 ................................................................ 4,000,000 4,206,000 -------------- 60,218,689 -------------- COLORADO 2.7% Broomfield COP, AMBAC Insured, 6.00%, 12/01/29 ................................................ 3,000,000 3,359,700 Centennial Water and Sanitation District Water and Sewer Revenue, Refunding, Series A, FSA Insured, 5.125%, 12/01/17 ............................................................... 5,000,000 5,277,650 Colorado Health Facilities Authority Revenue, Community Provider Pooled Loan Program, Series A, FSA Insured, 7.25%, 7/15/17 ....................................................... 27,000 27,157 Colorado Mountain College Residence Hall Authority Revenue, MBIA Insured, Pre-Refunded, 5.625%, 6/01/12 ............................................................................ 1,900,000 1,971,136 5.75%, 6/01/23 ............................................................................. 3,000,000 3,115,980 Colorado Springs Hospital Revenue, MBIA Insured, Pre-Refunded, 6.00%, 12/15/24 ................ 2,455,000 2,547,333 Denver City and County Airport Revenue, Series C, MBIA Insured, ETM, 6.125%, 11/15/25 .............................................. 8,000,000 8,780,580 Series E, MBIA Insured, 5.50%, 11/15/25 .................................................... 5,000,000 5,287,150 E-470 Public Highway Authority Revenue, Refunding, Senior Series A, MBIA Insured, 5.00%, 9/01/21 ..................................................................................... 5,000,000 5,229,750
86 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) COLORADO (CONT.) Morgan County PCR, first mortgage, Public Service Co., Refunding, Series A, MBIA Insured, 5.50%, 6/01/12 .............................................................................. $ 1,000,000 $ 1,002,620 University of Colorado Hospital Authority Revenue, Refunding, Series A, AMBAC Insured, 5.20%, 11/15/17 ............................................................................ 5,425,000 5,794,985 5.25%, 11/15/22 ............................................................................ 7,800,000 8,278,062 -------------- 50,672,103 -------------- CONNECTICUT 0.2% Connecticut State Health and Educational Facilities Authority Revenue, Danbury Hospital, Series E, MBIA Insured, 6.50%, 7/01/14 ................................... 335,000 343,871 Mansfield Nursing Home, AMBAC Insured, 6.00%, 11/01/22 ..................................... 2,450,000 2,483,295 -------------- 2,827,166 -------------- FLORIDA 8.7% Celebration CDD Special Assessment, Series B, MBIA Insured, 5.50%, 5/01/19 .................... 210,000 221,216 Clearwater Water and Sewer Revenue, FGIC Insured, 5.00%, 12/01/28 ................................................................................... 11,050,000 11,656,977 12/01/32 ................................................................................... 13,665,000 14,361,642 Dade County Seaport Revenue, Refunding, Series E, MBIA Insured, 8.00%, 10/01/08 ............... 200,000 231,984 Florida State Board of Education Capital Outlay GO, Public Education, Refunding, Series E, FGIC Insured, 5.00%, 6/01/24 .......................................... 5,000,000 5,317,350 Series B, FGIC Insured, 5.00%, 6/01/23 ..................................................... 5,395,000 5,764,827 Florida State Board of Education GO, Series C, MBIA Insured, 5.00%, 6/01/27 ................... 4,245,000 4,500,209 Greater Orlando Aviation Authority Orlando Airport Facilities Revenue, Series B, FGIC Insured, 5.25%, 10/01/28 ............................................................................. 2,500,000 2,650,125 Hillsborough County IDA, PCR, Tampa Electric Co. Project, Refunding, MBIA Insured, 6.25%, 12/01/34 .................................................................................... 1,000,000 1,029,700 Jacksonville Sales Tax Revenue, AMBAC Insured, 5.00%, 10/01/30 ................................ 5,000,000 5,228,450 Jacksonville Transportation Revenue, MBIA Insured, 5.25%, 10/01/29 ............................ 11,000,000 11,869,770 Lee County IDA Utilities Revenue, Bonita Springs Utilities Project, Refunding, MBIA Insured, 6.05%, 11/01/15 ................................................................................... 1,000,000 1,049,540 11/01/20 ................................................................................... 1,000,000 1,042,750 Lee County Solid Waste System Revenue, MBIA Insured, 5.375%, 10/01/15 ......................... 2,000,000 2,054,040 Manatee County School Board COP, MBIA Insured, Pre-Refunded, 6.125%, 7/01/21 .................. 5,000,000 5,273,300 Opa-Locka Capital Improvement Revenue, FGIC Insured, 6.125%, 1/01/24 .......................... 1,000,000 1,012,990 Orange County Health Facilities Authority Revenue, MBIA Insured, 6.00%, 11/01/24 .............. 260,000 260,679 Orange County School Board COP, Series A, MBIA Insured, 5.00%, 8/01/27 ........................ 10,000,000 10,515,100 Orange County Tourist Development Tax Revenue, AMBAC Insured, 5.25%, 10/01/27 ............................................................................ 10,000,000 10,764,600 Pre-Refunded, 5.50%, 10/01/31 .............................................................. 1,000,000 1,098,160 Orlando and Orange County Expressway Authority Expressway Revenue, junior lien, FGIC Insured, 6.50%, 7/01/10 .................................................. 100,000 115,603 junior lien, FGIC Insured, 6.50%, 7/01/12 .................................................. 225,000 269,953 Series B, AMBAC Insured, 5.00%, 7/01/35 .................................................... 20,000,000 21,057,800 Osceola County School Board COP, Series A, AMBAC Insured, 5.25%, 6/01/27 ...................... 13,000,000 14,073,150 Pasco County Guaranteed Entitlement Revenue, Refunding, FSA Insured, 5.00%, 12/01/33 .................................................................................... 2,185,000 2,307,207
Quarterly Statements of Investments | 87 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) FLORIDA (CONT.) Pinellas County Health Facilities Authority Revenue, Baycare Health System, FSA Insured, 5.00%, 11/15/30 ............................................................................. $ 4,000,000 $ 4,163,040 Polk County School Board COP, Series A, FSA Insured, 5.00%, 1/01/24 ........................... 5,000,000 5,282,050 Port Saint Lucie Utility Revenue, MBIA Insured, 5.00%, 9/01/34 ................................ 8,420,000 8,924,526 Sumter County School District Revenue, Multi-District Loan Program, FSA Insured, 7.15%, 11/01/15 .................................................................................... 245,000 320,198 Sunrise Utilities System Revenue, Refunding, AMBAC Insured, 5.20%, 10/01/22 ................... 2,000,000 2,274,840 Tampa Bay Water Utility System Revenue, FGIC Insured, Pre-Refunded, 5.75%, 10/01/29 ........... 2,000,000 2,293,660 Volusia County Educational Facility Authority Revenue, Embry Riddle Aeronautical University, Refunding, Series B, AMBAC Insured, 5.25%, 10/15/19 ......................................... 3,500,000 3,774,470 -------------- 160,759,906 -------------- GEORGIA 7.2% Athens Housing Authority Student Housing Lease Revenue, University of Georgia, East Campus, Refunding, AMBAC Insured, 5.00%, 12/01/33 ........................................... 6,000,000 6,298,020 Atlanta Airport Revenue, General, Series A, FGIC Insured, Pre-Refunded, 5.50%, 1/01/26 ........ 13,750,000 15,286,012 Atlanta GO, Refunding, FGIC Insured, 5.00%, 12/01/20 .......................................... 3,775,000 3,966,053 Atlanta Water and Wastewater Revenue, Series A, FGIC Insured, 5.00%, 11/01/29 ............................................................................ 4,750,000 4,927,697 Pre-Refunded, 5.00%, 11/01/29 .............................................................. 5,250,000 5,685,435 Brunswick Water and Sewer Revenue, Refunding and Improvement, MBIA Insured, 6.10%, 10/01/14 .................................................................................... 1,535,000 1,850,197 Burke County Development Authority PCR, Georgia Power Co. Plant Vogtle, Refunding, 2nd Series, AMBAC Insured, 5.25%, 5/01/34 ................................................... 5,000,000 5,065,200 Cherokee County Water and Sewage Authority Revenue, FGIC Insured, 5.00%, 8/01/27 ............................................................... 1,500,000 1,589,415 MBIA Insured, 6.90%, 8/01/18 ............................................................... 15,000 15,084 Columbus Building Authority Lease Revenue, Series A, FGIC Insured, 5.00%, 1/01/31 ............. 3,500,000 3,721,655 Fulton County Development Authority Revenue, Georgia Technical Athletic Assn., Refunding, AMBAC Insured, 5.125%, 10/01/32 ............................................................. 9,000,000 9,483,750 Georgia Medical Center Hospital Authority Revenue, Anticipation Certificates, Columbus Regional Healthcare Systems, MBIA Insured, 5.50%, 8/01/19 ................................... 15,000,000 16,362,300 Henry County Water and Sewer Authority Revenue, FGIC Insured, Pre-Refunded, 5.625%, 2/01/30 ..................................................................................... 3,500,000 3,915,835 Macon-Bibb County Urban Development Authority Revenue, MFH, Refunding, Series A, MBIA Insured, 5.55%, 1/01/24 ................................................................ 1,590,000 1,649,657 Metropolitan Atlanta Rapid Transit Authority Sales Tax Revenue, Second Indenture Series, MBIA Insured, 5.00%, 7/01/27 .................................................................................... 13,470,000 14,234,423 7/01/28 .................................................................................... 14,175,000 14,979,431 7/01/32 .................................................................................... 8,575,000 9,010,353 Rockdale County Water and Sewer Authority Revenue, Refunding, Series A, MBIA Insured, Pre-Refunded, 5.375%, 7/01/29 ............................................................... 6,350,000 7,025,704 South Fulton Municipal Regional Water and Sewer Authority Water Revenue, MBIA Insured, 5.00%, 1/01/33 .............................................................................. 8,000,000 8,400,880 -------------- 133,467,101 --------------
88 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) HAWAII 0.9% Hawaii County GO, Refunding and Improvement, Series A, FGIC Insured, 5.60%, 5/01/12 .................................................................................... $ 1,000,000 $ 1,139,080 5/01/13 .................................................................................... 1,000,000 1,149,210 Hawaii State Department of Budget and Finance Special Purpose Revenue, Hawaiian Electric Co. Project, Series B, MBIA Insured, 5.875%, 12/01/26 .................... 2,000,000 2,076,740 St. Francis Medical Centers, Refunding, FSA Insured, 6.50%, 7/01/22 ........................ 3,745,000 3,757,321 Honolulu City and County GO, Series C, FGIC Insured, 5.00%, 7/01/20 ........................... 6,250,000 6,659,938 Kauai County GO, Series A, FGIC Insured, Pre-Refunded, 6.125%, 8/01/23 ........................ 1,755,000 2,006,316 -------------- 16,788,605 -------------- ILLINOIS 0.8% Chicago Board of Education GO, Chicago School Reform, Series A, AMBAC Insured, 5.25%, 12/01/30 .................................................................................... 2,000,000 2,128,520 Chicago Board of Education Lease COP, Refunding, Series A, MBIA Insured, 6.25%, 1/01/09 ..................................................................................... 320,000 353,994 Illinois Health Facilities Authority Revenue, Northwestern Medical Facility Foundation, Refunding, MBIA Insured, 5.125%, 11/15/28 .................................................................................. 5,000,000 5,200,850 Series 1990, FSA Insured, ETM, 7.75%, 8/15/10 .............................................. 50,000 61,083 Macon County and Decatur COP, Decatur Public Building Commission, FGIC Insured, 6.50%, 1/01/06 ..................................................................................... 300,000 306,378 Metropolitan Pier and Exposition Authority Dedicated State Tax Revenue, McCormick Place Expansion Project, Refunding, Series A, AMBAC Insured, 5.25%, 6/15/27 ....................... 4,225,000 4,409,548 Onterie Center HFC Mortgage Revenue, Refunding, MBIA Insured, 7.05%, 7/01/27 .................. 2,000,000 2,012,440 Regional Transportation Authority Revenue, Series A, AMBAC Insured, 7.20%, 11/01/20 ........... 300,000 385,356 -------------- 14,858,169 -------------- KANSAS 0.1% Cowley and Shawnee Counties SFMR, GNMA Secured, 7.35%, 12/01/11 ............................... 115,000 116,153 Kansas State Development Finance Authority Health Facility Revenue, MBIA Insured, 5.80%, 11/15/21 .................................................................................... 1,330,000 1,380,886 -------------- 1,497,039 -------------- KENTUCKY 0.5% Jefferson County Capital Projects Corp. Revenue, Lease, MBIA Insured, 5.375%, 6/01/22 ............................................................................ 2,000,000 2,122,540 5.50%, 6/01/28 ............................................................................. 750,000 798,510 Kenton County Water District No. 1 Waterworks Revenue, Series B, FGIC Insured, Pre-Refunded, 5.70%, 2/01/20 ................................................................ 1,250,000 1,281,325 Louisville and Jefferson County Metropolitan Sewer District Sewer and Drain System Revenue, Series A, MBIA Insured, 5.50%, 5/15/34 ...................................................... 5,000,000 5,512,250 -------------- 9,714,625 -------------- LOUISIANA 0.9% Louisiana Local Government Environmental Facilities CDA Revenue, Parking Facilities Corp. ..... Garage Project, Series A, AMBAC Insured, 5.375%, 10/01/31 ................................... 5,485,000 5,886,776 Louisiana State Gas and Fuels Tax Revenue, Series A, AMBAC Insured, 5.00%, 6/01/27 ............ 10,000,000 10,486,700 -------------- 16,373,476 --------------
Quarterly Statements of Investments | 89 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MAINE 0.1% Maine State Health and Higher Educational Facilities Authority Revenue, Series C, FSA Insured, 6.20%, 7/01/25 ............................................................................. $ 100,000 $ 102,240 Pre-Refunded, 6.20%, 7/01/25 ............................................................... 1,915,000 1,958,700 -------------- 2,060,940 -------------- MARYLAND 1.8% Baltimore Project Revenue, Wastewater Projects, Refunding, FGIC Insured, 5.125%, 7/01/42 .............................. 11,000,000 11,596,420 (a)Wastewater Projects, Series B, MBIA Insured, 5.00%, 7/01/30 ............................. 8,500,000 9,061,000 (a)Wastewater Projects, Series B, MBIA Insured, 5.00%, 7/01/35 ............................. 5,000,000 5,317,300 Baltimore Revenue, Wastewater Project, Series A, FSA Insured, Pre-Refunded, 5.75%, 7/01/30 ..................................................................................... 5,880,000 6,606,709 Maryland State Health and Higher Educational Facilities Authority Revenue, University of Maryland Medical System, Series B, FGIC Insured, 7.00%, 7/01/22 ............................. 200,000 266,886 -------------- 32,848,315 -------------- MASSACHUSETTS 4.2% Central Berkshire Religious School District GO, Series B, FSA Insured, 5.125%, 3/01/18 ........ 1,125,000 1,188,067 Massachusetts State GO, Consolidated Loan, Series D, MBIA Insured, ETM, 5.00%, 8/01/27 ........................................................................ 3,535,000 3,879,875 Pre-Refunded, 5.00%, 8/01/27 ............................................................... 855,000 946,989 Massachusetts State Health and Educational Facilities Authority Revenue, Bay State Medical Center, Series E, FSA Insured, 6.00%, 7/01/26 ............................ 10,000,000 10,500,400 Caregroup Issue, Series A, MBIA Insured, 5.00%, 7/01/25 .................................... 4,250,000 4,429,520 Caregroup Issue, Series A, MBIA Insured, Pre-Refunded, 5.00%, 7/01/25 ...................... 750,000 843,045 Central New England Health, Series B, AMBAC Insured, 5.20%, 8/01/28 ........................ 5,000,000 5,226,300 Harvard Pilgrim Health, Series A, FSA Insured, 5.00%, 7/01/18 .............................. 3,000,000 3,160,710 Lahey Clinic Medical Center, Series B, MBIA Insured, 5.375%, 7/01/23 ....................... 1,000,000 1,011,480 Partners Healthcare System, Series A, MBIA Insured, 5.375%, 7/01/24 ........................ 9,700,000 10,189,365 Simmons College, Series C, MBIA Insured, 5.125%, 10/01/28 .................................. 8,000,000 8,460,400 Massachusetts State Industrial Finance Agency Revenue, Suffolk University, AMBAC Insured, 5.25%, 7/01/17 .............................................................................. 3,000,000 3,181,260 Massachusetts State Port Authority Revenue, Special Facilities, Bosfuel Project, MBIA Insured, 5.625%, 7/01/20 .................................................................................... 1,590,000 1,668,944 7/01/21 .................................................................................... 1,560,000 1,635,863 7/01/23 .................................................................................... 2,155,000 2,254,496 7/01/24 .................................................................................... 2,910,000 3,041,387 Massachusetts State Turnpike Authority Metropolitan Highway System Revenue, sub. lien, Refunding, Series B, MBIA Insured, 5.125%, 1/01/37 .......................................... 2,100,000 2,173,521 Massachusetts State Water Resource Authority Revenue, Refunding, Series J, FSA Insured, 5.00%, 8/01/32 .............................................................................. 13,500,000 14,127,210 -------------- 77,918,832 --------------
90 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MICHIGAN 10.6% Allen Park Public School District GO, School Building and Site, MBIA Insured, 5.00%, 5/01/33 ..................................................................................... $ 8,430,000 $ 8,868,023 Birmingham City School District GO, School Building and Site, FSA Insured, 5.00%, 11/01/33 .................................................................................... 8,135,000 8,623,344 Central Michigan University Revenue, Series A, AMBAC Insured, 5.05%, 10/01/32 ................. 8,650,000 9,149,191 Chippewa Valley Schools GO, Refunding, AMBAC Insured, Pre-Refunded, 5.00%, 5/01/27 ..................................................................................... 1,000,000 1,058,190 Detroit City School District GO, Series A, FSA Insured, 5.125%, 5/01/31 ....................... 6,500,000 6,857,175 Detroit Public Improvements GO, Series A-1, MBIA Insured, 5.00%, 4/01/21 ...................... 12,390,000 13,125,718 Detroit Sewage Disposal Revenue, senior lien, Refunding, Series A, FGIC Insured, 5.125%, 7/01/31 .............................................................. 6,000,000 6,294,780 FSA Insured, 5.00%, 7/01/32 ................................................................ 10,000,000 10,507,900 Detroit Water Supply System Revenue, senior lien, Series A, FGIC Insured, 5.25%, 7/01/33 ............................................................... 9,815,000 10,405,667 FGIC Insured, Pre-Refunded, 5.25%, 7/01/33 ................................................. 10,185,000 11,347,516 MBIA Insured, 5.00%, 7/01/34 ............................................................... 10,150,000 10,708,149 Ecorse Public School District GO, FGIC Insured, Pre-Refunded, 5.50%, 5/01/27 .................. 7,250,000 7,828,478 Grand Rapids Sanitation Sewer System Revenue, FGIC Insured, 5.00%, 1/01/34 .................... 10,000,000 10,582,800 Jackson County Hospital Finance Authority Revenue, W.A. Foote Memorial Hospital, Series A, AMBAC Insured, 5.25%, 6/01/17 ............................................................... 500,000 523,075 Kalamazoo Hospital Finance Authority Hospital Facility Revenue, Bronson Methodist Hospital, Refunding and Improvement, MBIA Insured, 5.875%, 5/15/26 .................................... 5,500,000 5,765,540 Marquette City Hospital Finance Authority Revenue, Marquette General Hospital, Series D, FSA Insured, Pre-Refunded, 6.10%, 4/01/19 ................................................... 5,000,000 5,234,550 Michigan Municipal Bond Authority Revenue, Clean Water Revolving, MBIA Insured, 5.00%, 10/01/23 .................................................................................... 5,095,000 5,382,918 Michigan State Hospital Finance Authority Revenue, Hospital Botsford Obligation, Refunding, Series A, MBIA Insured, 5.25%, 2/15/22 ............ 2,000,000 2,106,600 Oakwood Obligation Group, Refunding, Series A, FSA Insured, 5.00%, 8/15/31 ................. 10,000,000 10,437,200 St. John's Hospital, Refunding, Series A, AMBAC Insured, ETM, 6.00%, 5/15/13 ............... 2,500,000 2,682,325 Michigan State Strategic Fund Ltd. Obligation Revenue, Collateral, The Detroit Edison Co., Fund, Pollution, Refunding, Series BB, AMBAC Insured, 7.00%, 5/01/21 ........................ 250,000 333,760 Michigan State Strategic Fund Resources Recovery Ltd. Obligation Revenue, Detroit Education Exempt Facilities, Refunding, Series D, XLCA Insured, 5.25%, 12/15/32 ............. 10,000,000 10,618,900 Michigan State Trunk Line Revenue, Series A, FSA Insured, Pre-Refunded, 5.25%, 11/01/30 .................................................................................... 20,000,000 22,309,800 Royal Oak Hospital Finance Authority Revenue, William Beaumont Hospital, Series M, MBIA Insured, 5.25%, 11/15/31 ............................................................... 4,000,000 4,230,440 Saginaw Valley State University Revenue, Refunding, AMBAC Insured, 5.30%, 7/01/28 ............. 3,400,000 3,643,270 Yale Public Schools District GO, FSA Insured, 5.375%, 5/01/27 ................................. 3,845,000 4,001,645 Zeeland Public Schools GO, Refunding, MBIA Insured, 5.25%, 5/01/24 ............................ 3,180,000 3,299,218 -------------- 195,926,172 --------------
Quarterly Statements of Investments | 91 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MINNESOTA 4.1% Eden Prairie MFHR, Olympic Ridge, Refunding, Series A, GNMA Secured, 6.25%, 1/20/31 ..................................................................................... $ 2,000,000 $ 2,056,600 Medford ISD No. 763 GO, Series A, FSA Insured, 5.125%, 2/01/26 ................................ 2,475,000 2,623,673 Minneapolis and St. Paul Metropolitan Airports Commission Airport Revenue, Series C, FGIC Insured, 5.25%, 1/01/26 .................................................................................... 8,000,000 8,544,720 1/01/32 .................................................................................... 4,500,000 4,780,890 Minneapolis Special School District No. 001 COP, Refunding, Series B, FGIC Insured, 4.625%, 2/01/17 ............................................................................. 1,635,000 1,713,235 Minnesota Agriculture and Economic Development Board Revenue, Health Care System, Refunding, Series A, MBIA Insured, 5.75%, 11/15/26 ......................................... 180,000 194,150 Series A, MBIA Insured, Pre-Refunded, 5.75%, 11/15/26 ...................................... 12,100,000 13,144,230 Minnesota State HFAR, Rental Housing, Refunding, Series D, MBIA Insured, 6.00%, 2/01/22 ..................................................................................... 210,000 214,166 Robbinsdale ISD No. 281 GO, MBIA Insured, 5.00%, 2/01/22 ...................................... 7,340,000 7,816,219 Sauk Rapids ISD No. 47 GO, Series A, MBIA Insured, 5.75%, 2/01/26 ............................. 11,850,000 13,278,992 South Washington County ISD No. 833 GO, Series B, FSA Insured, 5.00%, 2/01/22 .................................................................................... 10,970,000 11,691,168 2/01/23 .................................................................................... 6,000,000 6,379,980 Woodbury COP, Series A, AMBAC Insured, 5.35%, 2/01/21 ......................................... 2,915,000 3,152,747 -------------- 75,590,770 -------------- MISSISSIPPI 0.0%(b) Harrison County Wastewater Management District Revenue, Wastewater Treatment Facilities, Refunding, Series A, FGIC Insured, 8.50%, 2/01/13 ........................................... 200,000 265,882 -------------- MISSOURI 0.2% St. Louis Municipal Finance Corp. Leasehold Revenue, City Justice Center, Series A, AMBAC Insured, Pre-Refunded, 5.95%, 2/15/16 ................................................. 2,000,000 2,083,500 St. Louis School District GO, FGIC Insured, Pre-Refunded, 6.00%, 4/01/12 ...................... 1,330,000 1,346,040 -------------- 3,429,540 -------------- MONTANA 0.5% Montana State Board of Workers Compensation Investment Program Revenue, MBIA Insured, ETM, 6.875%, 6/01/20 ........................................................................ 8,500,000 9,292,370 -------------- NEBRASKA 0.2% Lancaster County Hospital Authority Revenue, Bryan Memorial Hospital Project No. 1, MBIA Insured, ETM, 6.70%, 6/01/22 ........................................................... 2,500,000 3,150,875 Nebraska Educational Finance Authority Revenue, Creighton University Project, AMBAC Insured, 5.95%, 1/01/11 ............................................................... 1,000,000 1,027,390 -------------- 4,178,265 -------------- NEVADA 0.9% Carson City Hospital Revenue, Series B, AMBAC Insured, Pre-Refunded, 5.40%, 3/01/17 ........... 1,000,000 1,052,920 Clark County GO, Series A, AMBAC Insured, 6.50%, 6/01/17 ...................................... 250,000 311,798 Clark County School District GO, Series A, MBIA Insured, 7.00%, 6/01/10 ....................... 4,000,000 4,684,360 Director of the State Department of Business and Industry Revenue, Las Vegas Monorail Project, first tier, AMBAC Insured, 5.625%, 1/01/34 ......................................... 5,000,000 5,479,650 Truckee Meadows Water Authority Revenue, Series A, FSA Insured, 5.125%, 7/01/30 ............... 5,000,000 5,270,350 -------------- 16,799,078 --------------
92 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) NEW JERSEY 2.1% Essex County Improvement Authority Revenue, Garden State Cancer Center Project, AMBAC Insured, 6.00%, 12/01/20 .............................................................. $ 2,525,000 $ 2,612,037 Middlesex County COP, MBIA Insured, 5.30%, 6/15/29 ............................................ 3,575,000 3,793,111 New Brunswick Parking Authority Revenue, Guaranteed Parking, Series A, MBIA Insured, 5.00%, 9/01/34 .............................................................................. 1,500,000 1,575,150 New Jersey EDA Revenue, Motor Vehicle Surcharge Revenue, Series A, MBIA Insured, 5.00%, 7/01/29 .................... 3,450,000 3,677,872 Motor Vehicle Surcharge Revenue, Series A, MBIA Insured, 5.00%, 7/01/34 .................... 21,250,000 22,472,087 Municipal Rehabilitation, Series A, AMBAC Insured, 5.00%, 4/01/28 .......................... 4,000,000 4,244,240 New Jersey State Turnpike Authority Turnpike Revenue, Refunding, Series C, AMBAC Insured, 6.50%, 1/01/16 ......................................... 70,000 84,256 Series C, AMBAC Insured, Pre-Refunded, 6.50%, 1/01/16 ...................................... 230,000 277,776 -------------- 38,736,529 -------------- NEW MEXICO 0.1% Gallup PCR, Plains Electric Generation, Refunding, MBIA Insured, 6.65%, 8/15/17 ............... 2,000,000 2,010,800 -------------- NEW YORK 7.0% Central Square GO, Central School District, FGIC Insured, ETM, 6.50%, 6/15/10 ................. 900,000 1,043,856 Dutchess County IDA Civic Facilities Revenue, Bard College Project, AMBAC Insured, 5.375%, 6/01/27 ............................................................................. 3,945,000 4,190,694 MTA Revenue, Series B, MBIA Insured, 5.00%, 11/15/28 .......................................... 20,000,000 21,186,200 MTA Service Contract Revenue, Series B, MBIA Insured, 5.00%, 1/01/31 .......................... 7,000,000 7,343,980 Nassau Health Care Corp. Health System Revenue, Nassau County Guaranteed, FSA Insured, Pre-Refunded, 5.75%, 8/01/29 ................................................................ 5,000,000 5,620,150 New York City Municipal Water Finance Authority Water and Sewer System Revenue, Refunding, Series B, FGIC Insured, 5.25%, 6/15/29 .......................................... 10,405,000 10,906,521 Series B, AMBAC Insured, 5.25%, 6/15/29 .................................................... 5,000,000 5,241,000 New York City Transitional Finance Authority Revenue, Future Tax Secured, Refunding, Series B, MBIA Insured, 5.00%, 8/01/32 .......................................... 2,230,000 2,352,070 Series A, FGIC Insured, 5.125%, 8/01/33 .................................................... 14,590,000 15,503,188 New York City Trust Cultural Resources Revenue, New York Botanical Garden, MBIA Insured, 5.80%, 7/01/26 .............................................................................. 2,000,000 2,080,660 New York State Dormitory Authority Revenues, Mental Health Services Facilities Improvement, Series B, MBIA Insured, 5.25%, 8/15/31 ................................................................................... 6,310,000 6,689,168 Mental Health Services Facilities Improvement, Series B, MBIA Insured, Pre-Refunded, 5.25%, 8/15/31 ............................................................................ 8,690,000 9,707,988 Pace University, MBIA Insured, 5.70%, 7/01/22 .............................................. 7,500,000 8,044,200 Pace University, Refunding, MBIA Insured, 5.75%, 7/01/26 ................................... 2,500,000 2,683,900 St. John's University, MBIA Insured, Pre-Refunded, 5.70%, 7/01/26 .......................... 15,000,000 15,760,950 Vassar Brothers Hospital, FSA Insured, 5.375%, 7/01/25 ..................................... 4,000,000 4,218,680 Triborough Bridge and Tunnel Authority Revenues, Refunding, MBIA Insured, 5.00%, 11/15/32 .................................................................................... 5,000,000 5,253,500 Upper Mohawk Valley Regional Water Finance Authority Water Systems Revenue, Refunding, Series A, FSA Insured, 5.125%, 10/01/26 ..................................................... 1,495,000 1,565,654 -------------- 129,392,359 --------------
Quarterly Statements of Investments | 93 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) NORTH CAROLINA 0.8% Asheville Water System Revenue, FGIC Insured, 5.70%, 8/01/25 .................................. $ 1,000,000 $ 1,050,570 North Carolina Medical Care Commission Hospital Revenue, Rex Healthcare Project, AMBAC Insured, 5.00%, 6/01/17 ............................................................... 5,000,000 5,247,750 North Carolina Municipal Power Agency No. 1 Catawba Electric Revenue, MBIA Insured, ETM, 6.50%, 1/01/10 ......................................................................... 20,000 22,908 Raleigh Durham Airport Authority Airport Revenue, Series A, FGIC Insured, 5.00%, 11/01/25 ................................................................................... 5,000,000 5,271,350 11/01/31 ................................................................................... 4,000,000 4,185,200 -------------- 15,777,778 -------------- NORTH DAKOTA 0.3% Grand Forks Health Care System Revenue, Altru Health System Obligation Group, MBIA Insured, 5.625%, 8/15/27 ............................................................... 5,390,000 5,721,755 -------------- OHIO 6.9% Akron Income Tax Revenue, Community Learning Centers, Series A, FGIC Insured, 5.00%, 12/01/33 .................................................................................... 5,000,000 5,276,000 Cleveland Airport System Revenue, Series A, FSA Insured, 5.125%, 1/01/27 ............................................................................ 4,000,000 4,099,640 5.00%, 1/01/31 ............................................................................. 15,405,000 15,996,090 Cleveland Waterworks Revenue, Refunding and Improvement, Series I, FSA Insured, 5.00%, 1/01/23 ........................... 1,580,000 1,654,339 Series I, FSA Insured, Pre-Refunded, 5.00%, 1/01/23 ........................................ 1,170,000 1,241,440 Columbus City School District GO, School Facilities Construction and Improvement, FGIC Insured, 5.00%, 12/01/28 ................................................................................... 8,000,000 8,464,160 12/01/31 ................................................................................... 10,295,000 10,863,696 Elyria GO, FGIC Insured, Pre-Refunded, 5.40%, 12/01/17 ........................................ 2,400,000 2,530,920 Hamilton County Sales Tax Revenue, Hamilton County Football, Project B, MBIA Insured, 5.00%, 12/01/27 ............................................................................. 3,250,000 3,406,325 Hamilton Wastewater System Revenue, Series A, FSA Insured, Pre-Refunded, 5.15%, 10/15/17 .................................................................................... 3,015,000 3,256,351 Licking Heights Local School District GO, School Facilities Construction and Improvements, Series A, FGIC Insured, 5.625%, 12/01/28 .................................................... 3,465,000 3,857,584 Lucas County Hospital Revenue, Promedica Healthcare Obligation Group, Refunding, AMBAC Insured, 5.375%, 11/15/29 ............................................................. 5,000,000 5,393,800 Maumee City School District GO, School Facilities Construction and Improvements, FSA Insured, 5.00%, 12/01/27 ................................................................ 3,250,000 3,455,627 Medina City School District GO, FGIC Insured, Pre-Refunded, 5.25%, 12/01/28 ................... 7,500,000 8,184,825 Ohio State GO, Common Schools, FSA Insured, 5.00%, 9/15/21 .................................... 3,230,000 3,452,095 Ohio State Turnpike Commission Turnpike Revenue, Series A, MBIA Insured, Pre-Refunded, 5.50%, 2/15/26 ................................................................ 12,000,000 12,463,920 Olentangy Local School District GO, School Facilities Construction and Improvement, Series A, FGIC Insured, 5.25%, 12/01/32 ..................................................... 11,450,000 12,423,250 Reynoldsburg City School District GO, School Facilities Construction and Improvement, FSA Insured, 5.00%, 12/01/31 ................................................................ 4,000,000 4,238,800 Springfield City School District GO, FGIC Insured, 5.20%, 12/01/23 ............................ 3,860,000 4,217,166 Streetsboro City School District GO, School Improvement, MBIA Insured, 5.125%, 12/01/21 .................................................................................... 3,700,000 3,960,036
94 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) OHIO (CONT.) Toledo City School District GO, School Facilities Improvement, Series B, FGIC Insured, 5.00%, 12/01/32 ............................................................................. $ 4,000,000 $ 4,223,720 University of Cincinnati COP, University Center Project, MBIA Insured, Pre-Refunded, 5.125%, 6/01/24 ............................................................................. 2,950,000 3,079,210 West Holmes Local School District GO, MBIA Insured, Pre-Refunded, 5.375%, 12/01/17 ............ 3,100,000 3,280,017 -------------- 129,019,011 -------------- OKLAHOMA 0.1% McGee Creek Authority Water Revenue, MBIA Insured, 6.00%, 1/01/23 ............................. 300,000 365,127 Okmulgee County Governmental Building Authority Sales Tax Revenue, first mortgage, MBIA Insured, 6.20%, 3/01/20 ................................................................ 1,625,000 1,782,706 -------------- 2,147,833 -------------- OREGON 1.7% Chemeketa Community College District GO, FGIC Insured, Pre-Refunded, 5.95%, 6/01/16 ..................................................................................... 3,000,000 3,092,640 Clackamas Community College District Revenue, MBIA Insured, Pre-Refunded, 5.80%, 6/01/26 ..................................................................................... 2,500,000 2,573,550 Josephine County School District No. 7 GO, FGIC Insured, 5.70%, 6/01/13 ....................... 5,000,000 5,274,400 Northern Wasco County Peoples Utilities District Electric Revenue, FGIC Insured, Pre-Refunded, 5.625%, 12/01/22 .............................................................. 1,000,000 1,024,890 Ontario Catholic Health Revenue, Holy Rosary Medical Center, MBIA Insured, 5.50%, 11/15/12 .................................................................................... 700,000 721,651 Oregon Health Sciences University Revenue, Series A, MBIA Insured, 5.00%, 7/01/32 ..................................................... 8,000,000 8,432,720 Series B, MBIA Insured, 5.25%, 7/01/15 ..................................................... 1,500,000 1,564,710 Oregon State Department of Administrative Services COP, Series A, AMBAC Insured, Pre-Refunded, 5.80%, 5/01/24 ................................................ 5,000,000 5,319,700 MBIA Insured, Pre-Refunded, 5.70%, 5/01/17 ................................................. 1,000,000 1,035,810 Port of Portland International Airport Revenue, Portland International Airport, Series 11, FGIC Insured, 5.625%, 7/01/26 ............................................................... 1,000,000 1,040,650 Washington County Unified Sewer Agency Revenue, senior lien, FGIC Insured, Pre-Refunded, 5.50%, 10/01/16 ............................................................................. 1,845,000 1,927,675 -------------- 32,008,396 -------------- PENNSYLVANIA 2.0% Allegheny County Hospital Development Authority Revenue, Health System, Series A, MBIA Insured, 6.50%, 11/15/30 ............................................................... 10,000,000 11,740,400 Beaver County GO, Series A, MBIA Insured, Pre-Refunded, 5.90%, 10/01/26 ....................... 2,000,000 2,080,700 Pennsylvania Convention Center Authority Revenue, Series A, FGIC Insured, ETM, 6.00%, 9/01/19 ..................................................................................... 500,000 605,695 Philadelphia Airport Revenue, Philadelphia Airport System, Series A, AMBAC Insured, 6.10%, 6/15/25 ..................................................................................... 4,000,000 4,094,560 Philadelphia Gas Works Revenue, 1998 General Ordinance, Fourth Series, FSA Insured, 5.00%, 8/01/32 .............................................................................. 4,000,000 4,196,400 Philadelphia Water and Wastewater Revenue, Series A, FGIC Insured, 5.25%, 11/01/24 ............ 2,000,000 2,169,580 Pittsburgh and Allegheny County Public Auditorium Revenue, Regional Asset District Sales Tax, AMBAC Insured, 5.25%, 2/01/31 .......................................................... 6,000,000 6,421,200
Quarterly Statements of Investments | 95 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) PENNSYLVANIA (CONT.) Pittsburgh Water and Sewer System Authority Revenue, Refunding, FGIC Insured, ETM, 7.25%, 9/01/14 .............................................................................. $ 90,000 $ 106,421 State Public School Building Authority School Revenue, Philadelphia School District Project, FSA Insured, 5.00%, 6/01/33 ................................................................. 5,000,000 5,251,900 -------------- 36,666,856 -------------- RHODE ISLAND 0.7% Providence GO, Series A, FSA Insured, Pre-Refunded, 5.70%, 7/15/19 ............................ 3,000,000 3,202,560 Rhode Island Clean Water Financing Agency Revenue, Cranston Wastewater Treatment System, MBIA Insured, 5.80%, 9/01/22 ................................................................ 7,785,000 8,180,089 Rhode Island State Health and Educational Building Corp. Revenue, Hospital Financing, Lifespan Obligation Group, MBIA Insured, 5.75%, 5/15/23 ..................................... 1,750,000 1,864,502 -------------- 13,247,151 -------------- SOUTH CAROLINA 0.5% Piedmont Municipal Power Agency Electric Revenue, Refunding, FGIC Insured, 6.25%, 1/01/21 ..................................................................................... 200,000 253,398 Richland County Hospital Facilities Revenue, Community Provider, Pooled Loan Program, Series A, FSA Insured, ETM, 7.125%, 7/01/17 ................................................. 3,000,000 3,645,000 South Carolina Jobs EDA Industrial Revenue, South Carolina Electric and Gas Co. Project, Series A, AMBAC Insured, 5.20%, 11/01/27 .................................................... 5,000,000 5,378,050 Spartanburg Sanitation Sewer District Sewer System Revenue, MBIA Insured, Pre-Refunded, 5.50%, 6/01/27 .............................................................................. 500,000 530,240 -------------- 9,806,688 -------------- SOUTH DAKOTA 0.8% Brookings COP, AMBAC Insured, 5.10%, 12/01/18 ................................................. 5,000,000 5,291,750 Grant County PCR, Refunding, MBIA Insured, 5.90%, 6/01/23 ..................................... 4,800,000 4,813,536 Sioux Falls Medical Clinic Revenue, AMBAC Insured, 8.00%, 9/01/08 ............................. 1,035,000 1,047,482 South Dakota Lease Revenue, Series A, FSA Insured, 6.75%, 12/15/16 ............................ 2,720,000 3,257,309 -------------- 14,410,077 -------------- TENNESSEE 0.6% Johnson City Health and Educational Facilities Board Hospital Revenue, Medical Center Hospital, Refunding and Improvement, MBIA Insured, ETM, 5.25%, 7/01/28 .................................................................................. 8,500,000 8,860,825 Series 2000 A, MBIA Insured, Pre-Refunded, 5.125%, 7/01/25 ................................. 2,780,000 2,899,762 -------------- 11,760,587 -------------- TEXAS 10.5% Austin Hotel Occupancy Tax Revenue, sub. lien, Refunding, AMBAC Insured, 5.625%, 11/15/21 ........................................................................... 2,355,000 2,570,671 5.80%, 11/15/29 ............................................................................ 13,750,000 15,119,775 Austin Water and Wastewater System Revenue, Refunding, Series B, FSA Insured, 5.125%, 5/15/27 ............................................................................ 11,125,000 11,703,389 5.25%, 5/15/31 ............................................................................. 5,000,000 5,281,850 Bell County Health Facilities Development Corporate Revenue, Hospital, Cook Children's Medical Center, Refunding, FSA Insured, 5.30%, 12/01/23 ..................................... 5,000,000 5,378,750 Coastal Bend Health Facilities Development Corp. Revenue, Series B, AMBAC Insured, ETM, 6.30%, 1/01/17 .............................................................................. 12,230,000 14,149,743
96 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) TEXAS (CONT.) Dallas-Fort Worth International Airport Revenue, Joint Series A, FGIC Insured, 6.00%, 11/01/21 .............................................. $ 2,210,000 $ 2,418,801 Refunding and Improvement, Joint Series A, FGIC Insured, 5.625%, 11/01/21 .................. 12,000,000 13,050,240 Fort Bend County Levee ID No. 011 GO, AMBAC Insured, Pre-Refunded, 6.00%, 9/01/21 .................................................................................... 1,395,000 1,406,899 9/01/22 .................................................................................... 1,495,000 1,507,752 9/01/23 .................................................................................... 1,610,000 1,623,733 Harris County Health Facilities Development Corp. Revenue, Christus Health, Refunding, Series A, MBIA Insured, 5.375%, 7/01/29 ..................................................... 22,000,000 23,511,400 Harris County Hospital District Mortgage Revenue, AMBAC Insured, 7.40%, 2/15/10 ............................................................................. 1,055,000 1,167,896 ETM, 7.40%, 2/15/10 ........................................................................ 595,000 643,445 Harris County Houston Sports Authority Revenue, senior lien, Series G, MBIA Insured, 5.25%, 11/15/30 .................................................................................... 21,325,000 22,627,744 Houston Airport System Revenue, sub. lien, Series B, FSA Insured, 5.50%, 7/01/30 .............. 4,700,000 5,088,220 Houston Water and Sewer System Revenue, junior lien, Series B, FGIC Insured, Pre-Refunded, 5.75%, 12/01/30 ...................................... 10,000,000 11,291,600 Series C, FGIC Insured, Pre-Refunded, 5.375%, 12/01/27 ..................................... 6,800,000 7,270,560 Laredo ISD Public Facility Corp. Lease Revenue, Series C, AMBAC Insured, 5.00%, 8/01/29 ..................................................................................... 1,000,000 1,036,380 Matagorda County Navigation District No. 1 Revenue, Houston Industries Inc. Project, Refunding, Series A, MBIA Insured, 5.25%, 11/01/29 .................................................... 3,185,000 3,326,446 Series B, MBIA Insured, 5.15%, 11/01/29 .................................................... 2,750,000 2,886,042 Palo Duro River Authority GO, Refunding, FSA Insured, 6.375%, 8/01/08 ......................... 4,945,000 5,197,986 Pflugerville GO, FGIC Insured, 5.25%, 8/01/27 ............................................................................. 3,320,000 3,569,598 5.20%, 8/01/32 ............................................................................. 3,000,000 3,176,100 Portland Community Center Complex Development Corp. Sales Tax Revenue, Refunding, AMBAC Insured, 5.45%, 2/15/25 ............................................................... 1,450,000 1,534,448 San Antonio Water Revenue, Refunding and Improvement, MBIA Insured, 5.60%, 5/15/21 ..................................................................................... 3,250,000 3,391,992 San Marcos Waterworks and Sewer Systems Revenue, Series 1998, FSA Insured, 5.125%, 8/15/20 ..................................................................................... 2,870,000 2,980,122 Smithville HDC Mortgage Revenue, Smithville Retirement, Refunding, Series A, MBIA Insured, 6.40%, 1/01/22 ................................................................ 915,000 934,389 Southeast HDC Mortgage Revenue, Stonegate Retirement, MBIA Insured, 6.40%, 1/01/24 ..................................................................................... 980,000 1,001,903 Tarrant County Health Facilities Development Corp. Health Systems Revenue, Harris Methodist Health System, MBIA Insured, ETM, 6.00%, 9/01/24 .................................. 3,250,000 3,939,748 Tyler Health Facilities Development Corp. Hospital Revenue, East Texas Medical Center Project, Series B, FSA Insured, 5.50%, 11/01/17 ..................................................... 1,000,000 1,055,610 Series C, FSA Insured, 5.60%, 11/01/27 ..................................................... 1,430,000 1,533,403 Series D, FSA Insured, 5.375%, 11/01/27 .................................................... 8,800,000 9,497,048 United ISD, GO, 5.125%, 8/15/26 ............................................................... 3,000,000 3,182,190 -------------- 194,055,873 --------------
Quarterly Statements of Investments | 97 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) U.S. TERRITORIES 0.0%(b) District of Columbia HFA, RMR, Series 1986-1, FGIC Insured, 7.75%, 9/01/16 .................... $ 210,000 $ 211,451 -------------- UTAH 0.7% Intermountain Power Agency Power Supply Revenue, Refunding, Series B, MBIA Insured, 5.75%, 7/01/19 .............................................................................. 3,250,000 3,485,625 Provo Electric System Revenue, Series A, AMBAC Insured, ETM, 10.375%, 9/15/15 ................. 35,000 48,039 Utah County Hospital Revenue, IHC Health Services Inc., MBIA Insured, ETM, 5.25%, 8/15/21 .................................................................................... 5,000,000 5,218,950 8/15/26 .................................................................................... 5,000,000 5,045,000 -------------- 13,797,614 -------------- VIRGINIA 1.2% Chesapeake IDA Public Facilities Lease Revenue, Chesapeake Jail Project, MBIA Insured, Pre-Refunded, 6.00%, 6/01/12 ................................................................ 5,000,000 5,050,000 Front Royal and Warren County IDA Lease Revenue, School and Capital Improvement, Series B, FSA Insured, 5.00%, 4/01/35 ....................................................... 6,000,000 6,318,960 Middle River Regional Jail Authority Jail Facility Revenue, MBIA Insured, 5.00%, 5/15/28 ..................................................................................... 3,510,000 3,754,050 Spotsylvania County Water and Sewer System Revenue, MBIA Insured, Pre-Refunded, 5.40%, 6/01/27 ..................................................................................... 3,850,000 4,111,800 Winchester IDA Educational Facilities Revenue, first mortgage, Shenandoah University Project, MBIA Insured, 5.00%, 10/01/18 ............................................................................ 1,000,000 1,055,420 5.25%, 10/01/28 ............................................................................ 1,420,000 1,524,512 -------------- 21,814,742 -------------- WASHINGTON 2.3% Klickitat County PUD No. 1 Electric Revenue, FGIC Insured, Pre-Refunded, 5.65%, 10/01/15 ............................................................................ 1,000,000 1,019,910 5.75%, 10/01/27 ............................................................................ 1,000,000 1,020,240 Pierce County GO, School District No. 003 Puyallup, FGIC Insured, Pre-Refunded, 5.70%, 12/01/15 .................................................................................... 1,000,000 1,067,660 Port of Longview GO, MBIA Insured, 6.00%, 11/01/15 ............................................ 2,000,000 2,077,160 Seattle Water System Revenue, FGIC Insured, 5.625%, 8/01/26 ................................... 2,000,000 2,139,500 Snohomish County PUD No. 1 Electric Revenue, Generation System, FGIC Insured, ETM, 6.65%, 1/01/16 .............................................................................. 4,250,000 5,158,990 Tacoma GO, Series A, MBIA Insured, 5.625%, 12/01/22 ........................................... 3,400,000 3,560,378 Washington State GO, Various Purpose, Series C, FSA Insured, 5.25%, 1/01/26 ................... 6,000,000 6,445,860 Washington State Health Care Facilities Authority Revenue, Providence Services, MBIA Insured, 5.50%, 12/01/26 ......................................... 5,000,000 5,362,500 Swedish Health Services, Refunding, AMBAC Insured, 5.50%, 11/15/28 ......................... 13,000,000 13,966,290 -------------- 41,818,488 --------------
98 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) WEST VIRGINIA 1.0% Harrison County Community Solid Waste Disposal Revenue, Potomac Edison Co., Series C, AMBAC Insured, 6.75%, 8/01/24 ............................................................... $11,560,000 $ 11,758,716 Shepherd University Board of Governors Revenue, Residence Facilities Projects, MBIA Insured, 5.00%, 6/01/35 ................................................................ 1,600,000 1,694,208 West Virginia State GO, Series A, FGIC Insured, 5.00%, 11/01/21 ............................... 5,000,000 5,262,700 -------------- 18,715,624 -------------- WISCONSIN 0.2% Superior Limited Obligation Revenue, Midwest Energy Resources, Refunding, Series E, FGIC Insured, 6.90%, 8/01/21 ................................................................ 3,000,000 3,989,520 -------------- WYOMING 0.5% Natrona County Hospital Revenue, Wyoming Medical Center Projects, AMBAC Insured, Pre-Refunded, 6.00%, 9/15/24 ................................................................ 9,885,000 10,230,086 -------------- TOTAL BONDS (COST $1,685,672,580) ............................................................. 1,813,925,607 -------------- STEP-UP BONDS 1.5% KENTUCKY 1.5% Kentucky Economic Development Finance Authority Health System Revenue, Norton Healthcare Inc., Refunding, Series C, MBIA Insured, zero cpn. to 10/01/05, 6.15% thereafter, 10/01/26 .................................................................................. 12,195,000 13,349,866 Series C, MBIA Insured, zero cpn. to 10/01/05, 6.05% thereafter, 10/01/20 .................. 12,760,000 14,130,424 -------------- TOTAL STEP-UP BONDS (COST $24,462,669) ........................................................ 27,480,290 -------------- TOTAL LONG TERM INVESTMENTS (COST $1,710,135,249) ............................................. 1,841,405,897 -------------- SHORT TERM INVESTMENT (COST $100,000) 0.0%(b) BONDS 0.0%(b) NEW YORK 0.0%(b) (c)Long Island Power Authority Electric System Revenue, Sub Series 2, Daily VRDN and Put, 2.94%, 5/01/33 .............................................................................. 100,000 100,000 -------------- TOTAL INVESTMENTS (COST $1,710,235,249) 99.2% ................................................. 1,841,505,897 OTHER ASSETS, LESS LIABILITIES 0.8% ........................................................... 14,540,521 -------------- NET ASSETS 100.0% ............................................................................. $1,856,046,418 ==============
See Selected Portfolio Abbreviations on page 180. (a) Security purchased on a when-issued or delayed delivery basis. (b) Rounds to less than 0.05% of net assets. (c) Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. Quarterly Statements of Investments | See Notes to Statements of Investments. | 99 This page intentionally left blank. 100 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN KENTUCKY TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 96.5% BONDS 95.2% KENTUCKY 83.5% Bellevue GO, Public Project, Harbor Greene Project, 5.00%, 2/01/34 .............................. $ 1,065,000 $ 1,116,802 Boone County GO, Public Project, 5.00%, 4/01/20 ...................................................................................... 1,310,000 1,403,691 4/01/21 ...................................................................................... 1,000,000 1,066,560 Boone County PCR, Dayton Power and Light Co., Collateralized, Refunding, Series A, 6.50%, 11/15/22 ...................................................................................... 710,000 726,699 Boone Florence Water Commission Water Supply Systems Revenue, Refunding, FGIC Insured, 5.00%, 12/01/22 ..................................................................................... 1,200,000 1,278,024 12/01/27 ..................................................................................... 2,000,000 2,110,060 Bowling Green ISD, Finance Corp. School Building Revenue, 5.75%, 1/01/20 ........................ 1,140,000 1,262,425 Campbell and Kenton Counties Sanitation District No.1 Sanitation District Revenue, Series A, FSA Insured, 5.00%, 8/01/19 ...................................................................................... 1,500,000 1,602,195 8/01/24 ...................................................................................... 2,000,000 2,115,700 Christian County Hospital Revenue, Jennie Stuart Medical Center, Series A, 6.00%, 7/01/17 ...................................................................................... 1,000,000 1,046,000 Christian County Public Courthouse Corp. Lease Revenue, District Court Facilities Project, 5.125%, 8/01/20 .............................................................................. 1,015,000 1,094,150 Elizabethtown Public Properties Holding Inc. Revenue, First Mortgage, Administrative Office of the Courts, Judicial Facilities Project, MBIA Insured, 5.20%, 4/01/22 ........................ 2,000,000 2,122,840 Fayette County School District Finance Corp. School Building Revenue, 5.50%, 9/01/18 ............................................................................... 2,500,000 2,734,375 Refunding, Series B, FSA Insured, 4.00%, 1/01/17 ............................................. 1,525,000 1,552,938 Series A, AMBAC Insured, 5.25%, 4/01/20 ...................................................... 2,160,000 2,339,582 Florence GO, Public Project, Series A, FGIC Insured, 5.00%, 11/01/32 ............................ 1,000,000 1,044,470 Greater Kentucky Housing Assistance Corp. Mortgage Revenue, Section 8 Assisted Projects, Refunding, Series A, MBIA Insured, 6.10%, 1/01/24 ............................................. 405,000 405,138 Hancock County Solid Waste Disposal Revenue, Willamette Industries Inc. Project, 6.60%, 5/01/26 ....................................................................................... 1,000,000 1,037,600 Hardin County School District Finance Corp. School Building Revenue, 5.75%, 2/01/20 ............. 1,500,000 1,660,080 Hardin County Water District No. 2, Water System Revenue, Series A, AMBAC Insured, 5.00%, 1/01/31 ....................................................................................... 2,620,000 2,721,263 Harlan County Justice Center Revenue, First Judicial Center Project, AMBAC Insured, 5.00%, 3/01/25 ....................................................................................... 1,330,000 1,401,434 Henry County Water District No. 2 Water Revenue, Refunding, MBIA Insured, 4.75%, 1/01/28 ....................................................................................... 2,035,000 2,083,982 Jefferson County Health Facilities Revenue, Jewish Hospital Healthcare Services Inc., Refunding, AMBAC Insured, 5.75%, 1/01/26 ...................................................... 1,000,000 1,056,970 Jefferson County PCR, DuPont, Series A, 6.30%, 7/01/12 .......................................... 450,000 460,395 Jefferson County School District Finance Corp. School Building Revenue, Series A, FSA Insured, 5.25%, 7/01/18 ........................................................ 1,500,000 1,610,370 Series C, MBIA Insured, 4.00%, 9/01/17 ....................................................... 1,535,000 1,562,277 Jessamine County School District Finance Corp. School Building Revenue, 5.50%, 1/01/21 .......... 2,500,000 2,588,600
Quarterly Statements of Investments | 101 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN KENTUCKY TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) KENTUCKY (CONT.) Kenton County Airport Board Revenue, Cincinnati/Northern Kentucky International Airport, Series B, MBIA Insured, 5.75%, 3/01/13 ..................................................................................... $ 1,230,000 $ 1,278,991 Special Facilities, Delta Airlines Inc. Project, Series A, 7.50%, 2/01/20 .................... 445,000 394,782 Special Facilities, Delta Airlines Inc. Project, Series A, 7.125%, 2/01/21 ................... 325,000 274,771 Special Facilities, Delta Airlines Inc. Project, Series B, 7.25%, 2/01/22 .................... 445,000 379,033 Kentucky Area Development Districts Financing Trust Lease Program Revenue, City of Ewing, 6.00%, 6/01/30 ............................................................................... 2,000,000 2,200,800 Series C, 6.00%, 6/01/30 ..................................................................... 1,285,000 1,446,961 Series E, 5.70%, 6/01/22 ..................................................................... 1,000,000 1,116,830 Kentucky Economic Development Finance Authority Hospital System Revenue, Appalachian Regional Health Center Facility, Refunding and Improvement, 5.875%, 10/01/22 .................. 2,000,000 1,949,980 Kentucky Economic Development Finance Authority Revenue, Catholic Health Project, Refunding and Improvement, Series A, 5.00%, 12/01/18 .......................................... 2,000,000 2,082,300 Kentucky Infrastructure Authority Revenue, Infrastructure Revolving Fund Program, Series J, Pre-Refunded, 6.375%, 6/01/14 ............... 500,000 510,000 Series A, 5.00%, 6/01/19 ..................................................................... 1,140,000 1,216,494 Series A, 5.00%, 6/01/20 ..................................................................... 1,250,000 1,330,425 Series A, 5.00%, 6/01/21 ..................................................................... 1,190,000 1,263,292 Kentucky Rural Water Finance Corp. Public Project Revenue, Flexible Term Program, Series A, 5.00%, 2/01/26 .............................................. 1,055,000 1,111,864 Multimodal Flexible Term Program H, 5.00%, 2/01/34 ........................................... 1,500,000 1,576,875 Kentucky State Property and Buildings Commission Revenues, Project No. 62, Refunding, 2nd Series, 5.25%, 10/01/18 ....................................... 3,540,000 3,848,299 Project No. 64, MBIA Insured, Pre-Refunded, 5.50%, 5/01/17 ................................... 1,535,000 1,688,408 Project No. 69, Refunding, Series A, FSA Insured, 5.00%, 8/01/21 ............................. 2,300,000 2,533,795 Project No. 77, Refunding, MBIA Insured, Pre-Refunded, 5.00%, 8/01/23 ........................ 280,000 311,259 Project No. 77, Refunding, MBIA Insured, 5.00%, 8/01/23 ...................................... 820,000 911,545 Kentucky State Turnpike Authority Economic Development Road Revenue, Revitalization Project, Series A, AMBAC Insured, 5.00%, 7/01/25 ....................................................... 2,000,000 2,150,740 Lawrenceburg Water and Sewer Revenue, MBIA Insured, 5.00%, 10/01/28 ............................. 1,730,000 1,831,309 Louisville and Jefferson County Metropolitan Sewer District Sewer and Drain System Revenue, Series A, FGIC Insured, 5.00%, 5/15/30 ........................................................ 2,750,000 2,876,803 Louisville Parking Authority of River City Revenue, MBIA Insured, 5.00%, 6/01/29 ................ 3,290,000 3,450,124 Louisville Waterworks Board Water System Revenue, Louisville Water Co., FSA Insured, 5.50%, 11/15/25 ................................................................. 2,000,000 2,191,680 Refunding, FSA Insured, 5.25%, 11/15/24 ...................................................... 2,500,000 2,699,875 Madison County School District Finance Corp. School Building Revenue, MBIA Insured, 4.00%, 2/01/22 ....................................................................................... 1,315,000 1,282,112 McCracken County Hospital Revenue, Mercy Health System, Refunding, Series A, MBIA Insured, 6.40%, 11/01/07 ............................................................................... 500,000 511,890 Northern Kentucky University COP, AMBAC Insured, 5.00%, 12/01/27 ................................ 1,500,000 1,580,415 Northern Kentucky Water Service District Revenue, MBIA Insured, 4.875%, 2/01/20 ................. 1,270,000 1,322,222 Oldham County School District Finance Corp. School Building Revenue, MBIA Insured, 5.00%, 5/01/24 ....................................................................................... 5,680,000 6,075,669 Pendleton County Multi-County Lease Revenue, Kentucky Association of Counties Leasing Trust, Series A, 6.50%, 3/01/19 ...................................................................... 1,050,000 1,055,597
102 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN KENTUCKY TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) KENTUCKY (CONT.) Russell Health System Revenue, Our Lady of Bellefonte, Pre-Refunded, 5.50%, 7/01/15 ......................................... $ 800,000 $ 869,120 Pre-Refunded, 8.10%, 7/01/15 ................................................................. 145,000 155,701 Pre-Refunded, 8.10%, 7/01/15 ................................................................. 140,000 147,790 ------------ 96,832,371 ------------ U. S. TERRITORIES 11.7% Children's Trust Fund Puerto Rico Tobacco Settlement Revenue, Asset Backed Bonds, Refunding, 5.375%, 5/15/33 .................................................................... 1,865,000 1,885,832 Puerto Rico Commonwealth GO, Public Improvement, Series A, 5.125%, 7/01/31 .............................................................................. 3,125,000 3,264,906 Pre-Refunded, 5.125%, 7/01/31 ................................................................ 1,875,000 2,081,625 Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Series D, 5.375%, 7/01/36 ..................................................................... 2,500,000 2,695,625 Puerto Rico PBA Revenue, Government Facilities, Series D, 5.25%, 7/01/36 ............................................................................... 455,000 482,832 Pre-Refunded, 5.25%, 7/01/36 ................................................................. 995,000 1,109,903 Virgin Islands PFAR, senior lien, Fund Loan Notes, Refunding, Series A, 5.625%, 10/01/25 ........ 2,000,000 2,120,300 ------------ 13,641,023 ------------ TOTAL BONDS (COST $103,635,682) ................................................................ 110,473,394 ------------ ZERO COUPON/STEP-UP BONDS 1.3% KENTUCKY 1.3% Kentucky Economic Development Finance Authority Revenue, Norton Healthcare Inc., Series C, MBIA Insured, zero cpn. to 10/01/05, 6.15% thereafter, 10/01/24 ..................................................................................... 405,000 446,342 10/01/25 ..................................................................................... 935,000 1,027,677 ------------ TOTAL ZERO COUPON/STEP-UP BONDS (COST $1,313,131) ............................................... 1,474,019 ------------ TOTAL LONG TERM INVESTMENTS (COST $104,948,813) ................................................. 111,947,413 ------------ SHORT TERM INVESTMENTS 0.8% BONDS 0.8% KENTUCKY 0.7% (a)Berea Educational Facilities Revenue, Series A, Daily VRDN and Put, 2.97%, 6/01/32 .............. 780,000 780,000 ------------ U.S. TERRITORIES 0.1% (a)Puerto Rico Commonwealth Government Development Bank Revenue, Refunding, MBIA Insured, Weekly VRDN and Put, 2.85%, 12/01/15 .......................................................... 200,000 200,000 ------------ TOTAL SHORT TERM INVESTMENTS (COST $980,000) .................................................... 980,000 ------------ TOTAL INVESTMENTS (COST $105,928,813) 97.3% ..................................................... 112,927,413 OTHER ASSETS, LESS LIABILITIES 2.7% ............................................................. 3,086,543 ------------ NET ASSETS 100.0% ............................................................................... $116,013,956 ============
See Selected Portfolio Abbreviations on page 180. (a) Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. Quarterly Statements of Investments | See Notes to Statements of Investments. | 103 This page intentionally left blank. 104 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN LOUISIANA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 97.5% BONDS 97.5% LOUISIANA 92.8% Bossier City Public Improvement Sales and Use Tax Revenue, FGIC Insured, 5.00%, 12/01/19 ................................................................ $ 1,145,000 $ 1,206,223 Refunding, FGIC Insured, 5.00%, 12/01/21 ..................................................... 1,875,000 1,975,725 Refunding, FGIC Insured, 5.00%, 12/01/22 ..................................................... 1,515,000 1,594,886 Bossier Parish Sales and Use Tax Revenue, AMBAC Insured, 5.00%, 7/01/20 ......................... 1,900,000 2,038,814 Calcasieu Parish Public Trust Authority SFMR, Series A, GNMA Secured, 6.40%, 4/01/32 ............ 10,000 10,000 Calcasieu Parish Public Trust Authority Student Lease Revenue, McNeese Student Housing Project, MBIA Insured, 5.25%, 5/01/21 ...................................................................................... 1,505,000 1,629,072 5/01/33 ...................................................................................... 2,500,000 2,659,650 De Soto Parish Environmental Improvement Revenue, International Paper Co. Project, Series A, 5.65%, 12/01/21 ............................................................................... 1,000,000 1,033,180 De Soto Parish PCR, Cleco Utility Group Inc. Project, Refunding, AMBAC Insured, 5.875%, 9/01/29 ....................................................................................... 11,500,000 12,834,230 Denham Spring Livingston Housing and Mortgage Finance Authority SFHR, Series A, FHA Insured, ETM, 7.20%, 8/01/10 .................................................................. 1,380,000 1,640,613 East Baton Rouge Mortgage Finance Authority Revenue, SFM Purchase, Refunding, Series A, 6.10%, 10/01/29 ............................................................................... 310,000 319,449 East Baton Rouge Parish Park and Recreation District GO, FSA Insured, 5.00%, 5/01/25 ............ 3,325,000 3,549,836 East Baton Rouge Parish Sales and Use Tax Revenue, Public Improvement, Series ST, FGIC Insured, 5.00%, 2/01/20 ...................................................... 1,000,000 1,058,670 Refunding, Series A, AMBAC Insured, 5.00%, 2/01/24 ........................................... 2,000,000 2,142,300 Ernest N. Morial New Orleans Exhibit Hall Authority Special Tax, senior sub. note, Series A, AMBAC Insured, 5.00%, 7/15/33 ................................................................. 5,000,000 5,216,550 Greater New Orleans Expressway Commission Revenue, Refunding, AMBAC Insured, 5.00%, 11/01/27 ...................................................................................... 5,000,000 5,284,450 Jefferson Parish Revenue, Public Improvement, 24 Judicial District Project, MBIA Insured, 5.00%, 4/01/29 ................................................................................ 3,060,000 3,234,206 Jefferson Parish West Jefferson Park and Community Center Revenue, MBIA Insured, 5.00%, 10/01/29 ...................................................................................... 2,925,000 3,099,242 Jefferson Sales Tax District Special Sales Tax Revenue, Refunding, FSA Insured, 5.00%, 12/01/22 ...................................................... 3,000,000 3,150,120 Special Tax Bond, AMBAC Insured, 5.00%, 12/01/20 ............................................. 4,195,000 4,435,290 Lafayette Public Trust Financing Authority Revenue, Ragin Cajun Facilities Inc. Project, MBIA Insured, 5.00%, 10/01/22 ................................................................. 1,500,000 1,612,110 Lafayette Public Trust Financing Authority SFMR, Series A, ETM, 7.20%, 4/01/11 .................. 30,000 36,102 Lafayette Utilities Revenue, MBIA Insured, 5.00%, 11/01/28 ...................................... 5,000,000 5,312,150 Lafourche Parish Home Mortgage Authority SFMR, ETM, 7.40%, 7/01/10 .............................. 75,000 82,336 Livingston Parish Waterworks Revenue, Ward Two Water District, AMBAC Insured, 5.125%, 4/01/29 ....................................................................................... 2,200,000 2,381,434 Louisiana HFA Mortgage Revenue, MF, Westview Project, FHA Insured, 7.80%, 4/01/30 ............................................ 750,000 758,145 SF, Series A-1, GNMA Secured, 5.45%, 12/01/20 ................................................ 1,145,000 1,179,762 Louisiana Local Government Environmental Facilities CDA Revenue, Delgado Community College Foundation Project, AMBAC Insured, 6.00%, 10/01/29 ................. 1,000,000 1,125,370 Jefferson Parking Garage Project, AMBAC Insured, 5.00%, 9/01/21 .............................. 2,215,000 2,332,439 MBIA Insured, 5.00%, 12/01/26 ................................................................ 3,000,000 3,160,830
Quarterly Statements of Investments | 105 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN LOUISIANA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) LOUISIANA (CONT.) Louisiana Local Government Environmental Facilities CDA Revenue, (cont.) Parking Facilities Corp. Garage Project, Series A, AMBAC Insured, 5.375%, 10/01/26 ........... $ 2,000,000 $ 2,156,920 Parking Facilities Corp. Garage Project, Series A, AMBAC Insured, 5.375%, 10/01/31 ........... 2,000,000 2,146,500 Southeastern Louisiana Student Housing, Series A, MBIA Insured, 5.00%, 8/01/27 ............... 3,000,000 3,183,120 Louisiana Local Government Environmental Facilities GO, AMBAC Insured, 5.25%, 4/01/29 ........... 1,000,000 1,083,780 Louisiana Local Government Environmental Facility Revenue, Baton Rouge Apartments, Series A, MBIA Insured, 6.375%, 1/01/30 ....................................................... 4,265,000 4,610,252 Louisiana Public Facilities Authority Hospital Revenue, Franciscan Missionaries, Series C, MBIA Insured, 5.00%, 7/01/19 .............................. 3,750,000 3,935,175 Pendleton Memorial Methodist, Pre-Refunded, 5.25%, 6/01/28 ................................... 4,500,000 4,815,675 Touro Infirmary Project, Series A, 5.625%, 8/15/29 ........................................... 6,000,000 6,199,860 Louisiana Public Facilities Authority Revenue, Centenary College Project, Refunding, 5.75%, 2/01/29 ......................................... 7,300,000 7,271,311 Dillard University Project, Refunding, AMBAC Insured, 5.00%, 2/01/18 ......................... 1,500,000 1,585,560 Dillard University Project, Series A, AMBAC Insured, 5.30%, 8/01/26 .......................... 1,540,000 1,662,507 HFA, Mortgage Purchase, FNMA Insured, 6.05%, 1/01/26 ......................................... 645,000 653,682 Mortgage Purchase, HFA, Refunding, Series A, FNMA Insured, 6.40%, 7/20/20 .................... 1,900,000 1,937,126 Ochsner Clinic Foundation Project, Series B, 5.75%, 5/15/23 .................................. 2,500,000 2,698,350 Tulane University, AMBAC Insured, Pre-Refunded, 6.05%, 10/01/25 .............................. 5,500,000 5,838,635 Tulane University, Refunding, Series A, AMBAC Insured, 5.125%, 7/01/27 ....................... 3,000,000 3,179,580 Xavier University of Louisiana Project, Refunding, MBIA Insured, 5.25%, 9/01/17 .............. 1,000,000 1,063,530 Xavier University of Louisiana Project, Refunding, MBIA Insured, 5.25%, 9/01/27 .............. 6,015,000 6,384,983 Louisiana State Gas and Fuels Tax Revenue, Series A, AMBAC Insured, 5.00%, 6/01/27 ................................................................ 3,500,000 3,670,345 FGIC Insured, 5.00%, 5/01/30 ................................................................. 1,500,000 1,597,665 Louisiana State Office Facilities Corp. Lease Revenue, Capital Complex Program, AMBAC Insured, 5.00%, 5/01/21 ................................................................ 2,500,000 2,644,925 Series A, MBIA Insured, 5.375%, 3/01/19 ...................................................... 3,000,000 3,213,240 Louisiana State University and Agricultural and Mechanical College Board Revenue, AMBAC Insured, 5.00%, 7/01/22 ................................................................ 5,000,000 5,367,650 Auxiliary, Series B, AMBAC Insured, 5.00%, 7/01/27 ........................................... 1,500,000 1,590,915 Louisiana State University and Agricultural and Mechanical College University Revenues, Auxiliary, MBIA Insured, 5.50%, 7/01/26 ....................................................... 1,500,000 1,568,655 Monroe Sales and Use Tax Revenue, FGIC Insured, 5.25%, 7/01/23 .................................. 1,535,000 1,679,397 New Orleans GO, Drain Systems, AMBAC Insured, 5.00%, 12/01/18 ................................................ 1,000,000 1,049,940 Public Improvement, AMBAC Insured, 5.25%, 12/01/29 ........................................... 1,485,000 1,618,190 Public Improvement, FGIC Insured, 5.25%, 12/01/21 ............................................ 1,295,000 1,413,816 Public Improvement, FGIC Insured, 5.125%, 12/01/26 ........................................... 2,000,000 2,120,520 Refunding, MBIA Insured, 5.125%, 9/01/21 ..................................................... 2,000,000 2,159,760 Orleans Levee District Revenue, Levee Improvement, Refunding, FSA Insured, 5.95%, 11/01/14 ...................................................................................... 680,000 710,464
106 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN LOUISIANA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) LOUISIANA (CONT.) Orleans Parish Parishwide School District GO, Refunding, Series B, FGIC Insured, 5.50%, 9/01/20 ....................................................................................... $ 1,000,000 $ 1,059,110 Orleans Parish School Board GO, Series 95, FGIC Insured, 5.375%, 9/01/18 ........................ 1,950,000 1,961,622 Ouachita Parish Hospital Service District No. 1 Revenue, Glenwood Regional Medical Center, Refunding, FSA Insured, 5.75%, 5/15/21 ........................................................ 2,500,000 2,746,425 Ouachita Parish La West Ouachita Parish School District Sales and Use Tax Revenue, FGIC Insured, 5.75%, 9/01/24 .................................................................. 1,410,000 1,572,686 Rapides Parish Housing and Mortgage Finance Authority Revenue, SFM Purchase, FHA Insured, ETM, 7.25%, 8/01/10 ........................................................................... 870,000 959,506 Shreveport Certificates of Indebtedness Revenue, Refunding, Series A, AMBAC Insured, 5.00%, 10/01/16 ...................................................................................... 1,000,000 1,079,440 St. Bernard Home Mortgage Authority Revenue, SF, Series A, FGIC Insured, ETM, 7.50%, 9/01/10 ....................................................................................... 435,000 526,959 St. Bernard Parish Exempt Facilities Revenue, Mobil Oil Corp. Project, 5.90%, 11/01/26 .......... 1,500,000 1,564,290 St. Charles Parish PCR, Louisiana Power and Light Co. Project, 7.50%, 6/01/21 ................... 2,500,000 2,509,025 St. Charles Parish Solid Waste Disposal Revenue, Louisiana Power and Light Co. Project, 7.05%, 4/01/22 ............................................................................... 1,500,000 1,511,745 Series A, 7.00%, 12/01/22 .................................................................... 750,000 752,527 St. John's Baptist Parish EDR, USX Corp. Project, Refunding, 5.35%, 12/01/13 .................... 2,500,000 2,645,075 St. Tammany's Public Trust Financing Authority SFMR, Series A, ETM, 7.20%, 7/01/10 ...................................................................................... 80,000 87,165 7/01/11 ...................................................................................... 50,000 61,058 State Colleges and Universities Lease Revenue, University of Southwestern Louisiana, Cajundome, MBIA Insured, 5.65%, 9/01/26 ....................................................... 3,080,000 3,249,677 Terrebonne Parish Hospital Service District No. 1 Hospital Revenue, Terrebonne General Medical Center Project, Refunding, AMBAC Insured, 5.50%, 4/01/33 .............................. 2,155,000 2,360,221 University of Louisiana Board of Supervisors Lease Revenue, LaFayette Cajundome Convention, MBIA Insured, 6.25%, 9/01/29 .................................................................. 1,200,000 1,370,244 University System Board of Supervisors Revenue, Northwestern State University Wellness, AMBAC Insured, 5.10%, 4/01/24 ................................................................. 1,000,000 1,070,590 West Feliciana Parish PCR, Gulf State Utility Co. Project, 7.70%, 12/01/14 ...................... 6,500,000 6,500,000 ------------ 200,492,577 ------------ U. S. TERRITORIES 4.7% Puerto Rico Commonwealth GO, Public Improvement, MBIA Insured, Pre-Refunded, 5.75%, 7/01/26 ................................................... 4,400,000 4,921,884 Series A, 5.00%, 7/01/33 ..................................................................... 2,000,000 2,087,680 Virgin Islands PFAR, senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/18 ......... 3,000,000 3,193,050 ------------ 10,202,614 ------------ TOTAL LONG TERM INVESTMENTS (COST $197,297,617) ................................................. 210,695,191 ------------
Quarterly Statements of Investments | 107 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN LOUISIANA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM INVESTMENTS 1.0% BONDS 1.0% LOUISIANA 1.0% (a)Louisiana Public Facilities Authority Revenue, Kenner Hotel Ltd., Daily VRDN and Put, 2.83%, 12/01/15 ...................................................................................... $ 1,470,000 $ 1,470,000 (a)Louisiana State Offshore Terminal Authority Deepwater Port Revenue, Loop Inc. Project, First Stage, ACES, Refunding, Daily VRDN and Put, 2.97%, 9/01/17 .................................... 800,000 800,000 ------------ TOTAL SHORT TERM INVESTMENTS (COST $2,270,000) .................................................. 2,270,000 ------------ TOTAL INVESTMENTS (COST $199,567,617) 98.5% ..................................................... 212,965,191 OTHER ASSETS, LESS LIABILITIES 1.5% ............................................................. 3,161,753 ------------ NET ASSETS 100.0% ............................................................................... $216,126,944 ============
See Selected Portfolio Abbreviations on page 180. (a) Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. 108 | See Notes to Statements of Investments. | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MARYLAND TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 98.2% BONDS 98.2% MARYLAND 84.2% Anne Arundel County GO, 4.625%, 3/01/32 ......................................................... $ 2,000,000 $ 2,058,240 Anne Arundel County PCR, Baltimore Gas and Electric Co. Project, Refunding, 6.00%, 4/01/24 ....................................................................................... 9,500,000 9,794,215 Baltimore County Metropolitan 68th District GO, Refunding, 5.00%, 8/01/32 ....................... 1,000,000 1,057,850 Baltimore Economic Development Lease Revenue, Armistead Partnership, Refunding, Series A, 7.00%, 8/01/11 ................................................................................ 2,665,000 2,685,307 Baltimore GO, Consolidated Public Improvement, Series A, FGIC Insured, Pre-Refunded, 5.30%, 10/15/17 ........................................ 1,500,000 1,611,540 Series A, FSA Insured, Pre-Refunded, 5.25%, 10/15/17 ......................................... 3,300,000 3,650,988 Series B, 7.15%, 10/15/08 .................................................................... 1,000,000 1,129,510 Baltimore Port Facilities Revenue, Consolidated Coal Sales, Series A, 6.50%, 10/01/11 ........... 1,850,000 1,953,471 Baltimore Project Revenue, Wastewater Project, Refunding, FGIC Insured, 5.125%, 7/01/42 .................................................. 7,630,000 8,043,699 Series A, FGIC Insured, 5.00%, 7/01/33 .................................................... 3,000,000 3,169,170 (a)Series A, MBIA Insured, 5.00%, 7/01/35 .................................................... 4,240,000 4,509,070 Series B, FGIC Insured, Pre-Refunded, 5.00%, 7/01/28 ...................................... 4,000,000 4,239,560 Baltimore Revenue, Wastewater Project, Series A, FGIC Insured, Pre-Refunded, 5.80%, 7/01/15 ................................................... 5,000,000 5,531,450 FSA Insured, Pre-Refunded, 5.75%, 7/01/30 .................................................... 10,000,000 11,235,900 Carroll County Revenue, Fairhaven and Copper Ridge, Refunding, Series A, Radian Insured, 5.375%, 1/01/16 .............................................................................. 2,000,000 2,153,900 5.50%, 1/01/19 ............................................................................... 1,000,000 1,067,150 5.625%, 1/01/25 .............................................................................. 2,000,000 2,156,560 Gaithersburg Hospital Facilities Revenue, Shady Grove Adventist Hospital, Refunding and Improvement, FSA Insured, 6.00%, 9/01/21 ...................................................... 8,000,000 8,216,800 Harford County GO, Consolidated Public Improvement, 4.40%, 1/15/15 ............................................................................... 1,450,000 1,529,431 4.40%, 1/15/16 ............................................................................... 1,420,000 1,491,838 4.45%, 1/15/17 ............................................................................... 1,125,000 1,183,579 Harford County Mortgage Revenue, Greenbrier V Apartments Project, Refunding, FHA Insured, 6.50%, 11/01/26 ............................................................................... 3,000,000 3,072,540 Howard County Mortgage Revenue, Normandy Woods III Apartments Project, Refunding, Series A, FHA Insured, 6.10%, 7/01/25 ......................................................... 2,000,000 2,078,880 Maryland Environmental Services COP, Water and Waste Facilities, Series A, 6.70%, 6/01/11 ....................................................................................... 1,900,000 1,906,118 Maryland State CDA, Department of Housing and Community Development Revenue, Housing, Series A, 6.00%, 7/01/32 ............................................................ 4,000,000 4,166,640 Residential, Series D, 5.25%, 9/01/29 ........................................................ 3,730,000 3,788,785 Series B, 5.35%, 9/01/30 ..................................................................... 1,460,000 1,489,258 SF Program, First Series, 5.00%, 4/01/17 ..................................................... 220,000 220,788 SF Program, Second Series, 5.00%, 4/01/17 .................................................... 3,000,000 3,071,340 Maryland State EDC, Utility Infrastructure Revenue, University College Park Project, AMBAC Insured, 5.00%, 7/01/19 ................................................................. 1,710,000 1,828,999 Maryland State Energy Financing Administration Solid Waste Disposal Revenue, Limited Obligation, Wheelabrator Water Projects, 6.45%, 12/01/16 ...................................... 3,000,000 3,170,700
Quarterly Statements of Investments | 109 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MARYLAND TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MARYLAND (CONT.) Maryland State Health and Higher Educational Facilities Authority Revenue, Anne Arundel Health System, Series A, 5.125%, 7/01/34 ........................................ $ 2,500,000 $ 2,605,825 Anne Arundel Medical Center, FSA Insured, 5.125%, 7/01/33 .................................... 8,365,000 8,693,995 Carroll County General Hospital, 6.00%, 7/01/26 .............................................. 2,000,000 2,158,660 Carroll County General Hospital, 5.80%, 7/01/32 .............................................. 5,000,000 5,330,800 Catholic Health Initiatives, Series A, 6.00%, 12/01/20 ....................................... 715,000 810,002 Catholic Health Initiatives, Series A, ETM, 6.00%, 12/01/20 .................................. 2,205,000 2,493,612 Catholic Health Initiatives, Series A, ETM, 6.00%, 12/01/24 .................................. 2,025,000 2,270,187 Charity Obligation Group, Series A, 5.00%, 11/01/19 .......................................... 1,515,000 1,579,145 Charity Obligation Group, Series A, 5.00%, 11/01/29 .......................................... 2,250,000 2,336,130 Doctors Community Hospital, Refunding, 5.75%, 7/01/13 ........................................ 2,885,000 2,887,308 Helix Health Issue, AMBAC Insured, ETM, 5.00%, 7/01/27 ....................................... 11,000,000 12,069,860 Johns Hopkins, AMBAC Insured, 5.00%, 7/01/27 ................................................. 655,000 687,848 Johns Hopkins University Issue, Pre-Refunded, 6.00%, 7/01/39 ................................. 5,000,000 5,613,800 Maryland Institute College of Art, 5.625%, 6/01/36 ........................................... 3,600,000 3,814,596 Mercy Medical Center Project, Refunding, FSA Insured, 5.75%, 7/01/26 ......................... 1,500,000 1,551,105 Mercy Medical Center, Refunding, 5.625%, 7/01/31 ............................................. 5,500,000 5,733,585 North Arundel Hospital, 6.50%, 7/01/26 ....................................................... 1,000,000 1,144,800 North Arundel Hospital, 6.50%, 7/01/31 ....................................................... 1,320,000 1,509,156 Parking, Johns Hopkins Medical Institutions, AMBAC Insured, 5.00%, 7/01/34 ................... 5,000,000 5,306,900 Roland Park Place Project, Refunding, 5.625%, 7/01/18 ........................................ 2,500,000 2,521,050 Roland Park Place Project, Refunding, 5.625%, 7/01/24 ........................................ 2,680,000 2,697,902 University of Maryland Medical System, 6.75%, 7/01/30 ........................................ 11,000,000 12,570,690 Upper Chesapeake Hospitals, Series A, FSA Insured, 5.375%, 1/01/28 ........................... 5,000,000 5,248,200 Upper Chesapeake Hospitals, Series A, FSA Insured, 5.125%, 1/01/33 ........................... 7,100,000 7,334,868 Maryland State Health and Higher Revenue, Johns Hopkins University, Series A, 5.00%, 7/01/32 ....................................................................................... 29,000,000 30,515,540 Maryland State Stadium Authority Lease Revenue, Convention Center Expansion, AMBAC Insured, 5.875%, 12/15/14 ..................................................................... 4,655,000 4,757,317 Maryland State Stadium Authority Sports Facilities Lease Revenue, AMBAC Insured, 5.75%, 3/01/22 ............................................................................... 5,000,000 5,152,150 5.80%, 3/01/26 ............................................................................... 2,045,000 2,107,966 Maryland State Transportation Authority Lease Revenue, Metrorail Parking Project, AMBAC Insured, 5.00%, 7/01/28 ....................................................................... 3,975,000 4,249,991 Maryland State Transportation Authority Transportation Facility Projects Revenue, FSA Insured, 5.00%, 7/01/27 ...................................................................................... 5,890,000 6,306,718 7/01/31 ...................................................................................... 7,455,000 7,935,773 7/01/32 ...................................................................................... 7,165,000 7,621,554 7/01/34 ...................................................................................... 7,500,000 7,995,375 Maryland Transportation Authority Revenue, AMBAC Insured, 5.00%, 3/01/27 ........................ 8,000,000 8,422,800 Maryland Water Quality Financing Administration Revenue, Revolving Loan Fund, Series A, 6.55%, 9/01/14 ................................................................................ 965,000 970,172 Montgomery County GO, 4.75%, 2/01/17 ...................................................................................... 5,000,000 5,338,050 4/01/22 ...................................................................................... 3,000,000 3,184,140
110 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MARYLAND TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MARYLAND (CONT.) Montgomery County Housing Opportunities Commission MFHR, Series B, FHA Insured, 6.00%, 7/01/37 ....................................................................................... $ 2,500,000 $ 2,581,475 Montgomery County Revenue Authority Golf Course System Revenue, Series A, Pre-Refunded, 6.125%, 10/01/22 .............................................................................. 1,000,000 1,061,180 Morgan State University Maryland and Aux Facilities Fees Revenue, Series A, FGIC Insured, 5.00%, 7/01/32 ................................................................................ 6,450,000 6,822,810 Prince George's County GO, Consolidated Public Improvement, 4.40%, 9/15/22 ............................................................................... 10,000,000 10,307,100 MBIA Insured, 5.00%, 4/15/18 ................................................................. 2,100,000 2,218,881 Prince George's County IDA, Lease Revenue, Upper Marlboro Justice-B, MBIA Insured, 4.75%, 6/30/30 ....................................................................................... 4,000,000 4,124,320 Prince George's County PCR, Potomac Electric Project, Refunding, 6.00%, 9/01/22 ............................................................................... 1,200,000 1,206,048 6.375%, 1/15/23 .............................................................................. 2,975,000 2,989,280 St. Mary's College Revenue, Academic Fees and Auxiliary Fees Project, Series A, AMBAC Insured, 5.55%, 9/01/30 ........................................................................ 2,000,000 2,234,640 Westminster Education Facility Revenue, Mc Daniel College, 5.50%, 4/01/27 ...................................................................................... 425,000 450,436 4/01/32 ...................................................................................... 1,500,000 1,586,895 ------------ 332,373,911 ------------ U. S. TERRITORIES 14.0% Puerto Rico Commonwealth GO, Public Improvement, FSA Insured, Pre-Refunding, 5.25%, 7/01/27 ................................................... 1,520,000 1,697,947 FSA Insured, Pre-Refunding, 5.125%, 7/01/30 .................................................. 4,360,000 4,840,472 Refunding, FSA Insured, 5.25%, 7/01/27 ....................................................... 1,015,000 1,091,318 Refunding, FSA insured, 5.125%, 7/01/30 ...................................................... 2,870,000 3,069,752 Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Series D, 5.25%, 7/01/38 ..................................................................... 5,000,000 5,312,100 Series G, 5.00%, 7/01/33 ..................................................................... 7,000,000 7,311,710 Puerto Rico Electric Power Authority Power Revenue, Refunding, Series SS, FSA Insured, 5.00%, 7/01/30 ............................................ 5,000,000 5,385,400 Series HH, FSA Insured, 5.25%, 7/01/29 ....................................................... 10,780,000 11,693,605 Series II, 5.25%, 7/01/31 .................................................................... 3,000,000 3,219,120 Series RR, XLCA Insured, 5.00%, 7/01/30 ...................................................... 2,000,000 2,145,600 Puerto Rico PBA Revenue, Government Facilities, Series D, 5.25%, 7/01/36 ............................................................................... 520,000 551,808 Pre-Refunded, 5.25%, 7/01/36 ................................................................. 1,480,000 1,650,910 Virgin Islands PFAR, Gross Receipts Taxes, Loan Note, FSA Insured, 5.00%, 10/01/22 ................................ 2,000,000 2,172,180 senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/18 ........................... 1,700,000 1,809,395 senior lien, Refunding, Series A, 5.50%, 10/01/14 ............................................ 3,300,000 3,540,240 ------------ 55,491,557 ------------ TOTAL LONG TERM INVESTMENTS (COST $364,478,333) ................................................. 387,865,468 ------------
Quarterly Statements of Investments | 111 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MARYLAND TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM INVESTMENTS 0.8% BONDS 0.8% MARYLAND 0.8% (b)Baltimore County Revenue, Oak Crest Village Inc. Project, Series A, Weekly VRDN and Put, 2.97%, 1/01/29 ................................................................................ $ 1,200,000 $ 1,200,000 (b)Maryland State EDC, Economic Development Revenue, Chesapeake Bay Foundation, Weekly VRDN and Put, 2.97%, 11/01/23 ................................................................. 610,000 610,000 (b)Maryland State EDC Revenue, U.S. Pharmacopeial Project, Series A, AMBAC Insured, Daily VRDN and Put, 2.97%, 7/01/34 .................................................................. 1,320,000 1,320,000 ------------ TOTAL SHORT TERM INVESTMENTS (COST $3,130,000) .................................................. 3,130,000 ------------ TOTAL INVESTMENTS (COST $367,608,333) 99.0% ..................................................... 390,995,468 OTHER ASSETS, LESS LIABILITIES 1.0% ............................................................. 3,799,338 ------------ NET ASSETS 100.0% ............................................................................... $394,794,806 ============
See Selected Portfolio Abbreviations on page 180. (a) Security purchased on a when-issued or delayed delivery basis. (b) Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. 112 | See Notes to Statements of Investments. | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MASSACHUSETTS INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 98.6% BONDS 98.6% MASSACHUSETTS 98.6% Auburn GO, AMBAC Insured, 5.125%, 6/01/24 ....................................................... $ 1,465,000 $ 1,612,892 Boston Convention Center Act of 1997 Revenue, Special Obligation, Series A, AMBAC Insured, 5.00%, 5/01/27 ................................................................................ 3,970,000 4,256,038 Boston GO, MBIA Insured, 5.00%, 2/01/21 ................................................................. 3,000,000 3,231,900 Series A, MBIA Insured, 5.00%, 2/01/22 ....................................................... 2,940,000 3,165,469 Chelsea GO, State Qualified, Refunding, AMBAC Insured, 5.125%, 6/15/16 .......................... 1,750,000 1,858,867 Dudley Charlton Regional School District GO, Series B, FGIC Insured, 5.25%, 5/01/19 ............. 3,140,000 3,632,007 Foxborough Stadium Infrastructure Improvement Revenue, 5.75%, 6/01/25 ........................... 4,000,000 4,427,240 Greater Lawrence Sanitary District GO, MBIA Insured, 5.625%, 6/15/20 ............................ 1,000,000 1,114,000 Holyoke Gas and Electric Department Revenue, Series A, MBIA Insured, 5.00%, 12/01/26 ............ 9,805,000 10,546,160 Kingston GO, FGIC Insured, 5.50%, 11/15/19 ...................................................... 2,055,000 2,262,904 Lawrence GO, AMBAC Insured, 5.00%, 2/01/21 ...................................................... 1,000,000 1,072,670 Lowell GO, FGIC Insured, Pre-Refunded, 5.85%, 2/15/20 ................................................... 1,595,000 1,801,425 State Qualified, AMBAC Insured, 5.00%, 2/01/21 ............................................... 1,330,000 1,446,335 State Qualified, AMBAC Insured, 5.00%, 2/01/22 ............................................... 1,405,000 1,528,064 Ludlow GO, School Project, Limited Tax, MBIA Insured, 7.30%, 11/01/07 .............................................................................. 210,000 231,878 7.30%, 11/01/08 .............................................................................. 210,000 240,017 7.40%, 11/01/09 .............................................................................. 210,000 247,714 Lynn Water and Sewer Commission General Revenue, Series A, FSA Insured, Pre-Refunded, 5.125%, 12/01/17 .............................................................................. 3,000,000 3,162,150 Mansfield GO, Municipal Purpose Loan, FGIC Insured, 5.125%, 8/15/17 ............................. 1,685,000 1,769,014 Martha's Vineyard Land Bank Revenue, AMBAC Insured, 4.875%, 5/01/22 .............................................................................. 2,000,000 2,125,980 5.00%, 5/01/32 ............................................................................... 2,000,000 2,103,920 5.00%, 5/01/34 ............................................................................... 7,000,000 7,385,840 Massachusetts Bay Transportation Authority COP, MBIA Insured, 7.75%, 1/15/06 .................... 500,000 514,970 Massachusetts Bay Transportation Authority Revenue, General Transportation System, Series C, FGIC Insured, 5.25%, 3/01/15 ....................................................... 2,000,000 2,270,840 Series D, MBIA Insured, 5.00%, 3/01/27 ....................................................... 5,000,000 5,230,800 Massachusetts Bay Transportation Authority Sales Tax Revenue, Refunding, Senior Series A, FGIC Insured, 5.00%, 7/01/27 .................................................................. 5,000,000 5,532,500 Massachusetts State College Building Authority Project Revenue, Capital Assurance, Refunding, Series A, XLCA Insured, 5.00%, 5/01/43 ......................... 2,000,000 2,091,600 Refunding, Series B, XLCA Insured, 5.50%, 5/01/39 ............................................ 5,000,000 5,954,050 Series 1, MBIA Insured, ETM, 5.375%, 5/01/23 ................................................. 5,000,000 5,285,550 Series A, MBIA Insured, 5.00%, 5/01/23 ....................................................... 2,000,000 2,157,940 Massachusetts State Development Finance Agency Revenue, Brandeis University, Series K, FGIC Insured, 4.75%, 10/01/28 ................................. 2,000,000 2,068,000 Massachusetts/Saltonstall Redevelopment Building Corp., Series A, MBIA Insured, 5.125%, 2/01/34 ..................................................................................... 22,400,000 24,049,312 MBIA Insured, 5.20%, 7/01/32 ................................................................. 2,250,000 2,423,542 Series A, AMBAC Insured, 5.375%, 1/01/42 ..................................................... 4,000,000 4,392,280 Series A, GNMA Secured, 6.90%, 10/20/41 ...................................................... 2,090,000 2,409,624 Western New England College, AMBAC Insured, 5.25%, 7/01/20 ................................... 1,500,000 1,640,370
Quarterly Statements of Investments | 113 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MASSACHUSETTS INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MASSACHUSETTS (CONT.) Massachusetts State GO, Consolidated Loan, Series A, FSA Insured, 5.00%, 3/01/24 ........................................................ $ 5,000,000 $ 5,379,000 Series C, FGIC Insured, Pre-Refunded, 5.25%, 11/01/30 ........................................ 9,645,000 10,704,889 Series D, FSA Insured, ETM, 5.00%, 11/01/24 .................................................. 2,500,000 2,762,425 Series D, MBIA Insured, ETM, 5.00%, 8/01/27 .................................................. 3,430,000 3,764,631 Series D, MBIA Insured, Pre-Refunded, 5.00%, 8/01/22 ......................................... 4,100,000 4,499,996 Series D, MBIA Insured, Pre-Refunded, 5.00%, 8/01/27 ......................................... 965,000 1,068,824 Massachusetts State Health and Educational Facilities Authority Revenue, Bay State Medical Center, Series E, FSA Insured, 6.00%, 7/01/26 .............................. 1,500,000 1,575,060 Berkshire Health System, Series D, MBIA Insured, 6.00%, 10/01/19 ............................. 5,500,000 5,662,470 Boston College, Series N, MBIA Insured, 5.125%, 6/01/33 ...................................... 5,000,000 5,318,300 Brandeis University, Refunding, Series I, MBIA Insured, 4.75%, 10/01/20 ...................... 3,000,000 3,102,240 Cable Housing and Health Services, Series A, MBIA Insured, 5.25%, 7/01/23 .................... 1,000,000 1,002,330 Catholic Health East, Series A, AMBAC Insured, 5.00%, 11/15/28 ............................... 6,575,000 6,795,854 Cooley Dickinson Hospital, Series B, AMBAC Insured, 5.50%, 11/15/18 .......................... 3,500,000 3,573,745 Cooley Dickinson Hospital, Series B, AMBAC Insured, 5.50%, 11/15/25 .......................... 7,720,000 7,882,660 Harvard University, Series FF, 5.125%, 7/15/37 ............................................... 8,000,000 8,491,200 Lahey Clinic Medical Center, Series B, MBIA Insured, 5.375%, 7/01/23 ......................... 21,730,000 21,979,460 New England Medical Center Hospital, Series H, FGIC Insured, 5.00%, 5/15/22 .................. 10,000,000 10,539,300 Newton-Wellesley Hospital, Series E, MBIA Insured, 6.00%, 7/01/18 ............................ 1,300,000 1,328,925 Newton-Wellesley Hospital, Series E, MBIA Insured, 6.00%, 7/01/25 ............................ 6,750,000 6,900,187 Northeastern University, Series I, MBIA Insured, 5.00%, 10/01/29 ............................. 1,250,000 1,322,462 Partners Healthcare System, Series A, MBIA Insured, 5.375%, 7/01/24 .......................... 5,000,000 5,252,250 Springfield College, AMBAC Insured, 5.00%, 10/15/27 .......................................... 2,500,000 2,605,825 Stonehill College, Series F, AMBAC Insured, 5.75%, 7/01/26 ................................... 1,690,000 1,753,781 Tufts University, Series I, 5.25%, 2/15/30 ................................................... 4,000,000 4,269,160 University of Massachusetts Project, Series A, FGIC Insured, Pre-Refunded, 5.875%, 10/01/29 .................................................................................... 4,000,000 4,564,440 University of Massachusetts Project, Series C, MBIA Insured, 5.25%, 10/01/31 ................. 1,500,000 1,620,960 University of Massachusetts, Series C, FGIC Insured, 5.125%, 10/01/34 ........................ 3,000,000 3,230,130 University of Massachusetts, Worcester Campus, Series B, FGIC Insured, 5.25%, 10/01/31 .................................................................................... 3,500,000 3,784,935 Wellesley College, Series F, 5.125%, 7/01/39 ................................................. 7,500,000 7,826,325 Wheelock College, Series B, MBIA Insured, 5.625%, 10/01/30 ................................... 1,770,000 1,937,778 Williams College, Series F, MBIA Insured, 5.50%, 7/01/26 ..................................... 2,500,000 2,590,225 Massachusetts State HFA, MFHR, Section 8 Assisted, Series A, GNMA Secured, ETM, 7.00%, 4/01/21 ........................ 430,000 572,695 SFHR, Series 53, MBIA Insured, 6.15%, 12/01/29 ............................................... 690,000 716,841 SFHR, Series 57, MBIA Insured, 5.55%, 6/01/25 ................................................ 2,255,000 2,302,130 Massachusetts State HFA Housing Revenue, Rental, Series A, AMBAC Insured, 5.95%, 7/01/30 ....................................................................................... 2,000,000 2,114,300 Massachusetts State Industrial Finance Agency Electrical Utility Revenue, Nantucket Electric Co., Series A, AMBAC Insured, 5.875%, 7/01/17 .................................................. 4,000,000 4,190,520 Massachusetts State Industrial Finance Agency Revenue, Simons Rock College, AMBAC Insured, 5.50%, 6/01/27 ........................................... 1,560,000 1,636,019 St. Marks School Issue, MBIA Insured, 5.375%, 1/01/21 ........................................ 2,665,000 2,753,158
114 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MASSACHUSETTS INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MASSACHUSETTS (CONT.) Massachusetts State Industrial Finance Agency Revenue, (cont.) Suffolk University, AMBAC Insured, 5.25%, 7/01/27 ............................................ $ 4,000,000 $ 4,237,520 Trustees Deerfield Academy, 5.25%, 10/01/27 .................................................. 2,800,000 2,938,208 Western New England College, AMBAC Insured, 5.00%, 7/01/28 ................................... 4,000,000 4,172,720 WGBH Educational Foundation, Refunding, AMBAC Insured, 5.00%, 3/01/28 ........................ 2,500,000 2,601,425 Worcester Polytechnical Institute, Refunding, MBIA Insured, 5.125%, 9/01/17 .................. 3,720,000 3,939,666 Worcester Polytechnical Institute, Refunding, Series II, MBIA Insured, 5.50%, 9/01/21 ........ 2,000,000 2,124,300 Worcester Polytechnical Institute, Refunding, Series II, MBIA Insured, 5.125%, 9/01/27 ....... 4,000,000 4,213,800 Massachusetts State Port Authority Revenue, (a)Series A, AMBAC Insured, 5.00%, 7/01/35 ................................................... 10,000,000 10,609,300 Series A, FSA Insured, 5.125%, 7/01/17 .................................................... 2,000,000 2,154,060 Special Facilities, Bosfuel Project, MBIA Insured, 5.625%, 7/01/19 ........................ 2,215,000 2,330,911 Special Facilities, Bosfuel Project, MBIA Insured, 5.625%, 7/01/22 ........................ 2,000,000 2,095,220 Special Facilities, Bosfuel Project, MBIA Insured, 5.75%, 7/01/29 ......................... 7,450,000 7,804,695 Special Facilities, Bosfuel Project, MBIA Insured, 5.75%, 7/01/39 ......................... 845,000 884,369 US Airways Project, MBIA Insured, 6.00%, 9/01/21 .......................................... 4,700,000 5,025,099 US Airways Project, Series A, MBIA Insured, 5.875%, 9/01/23 ............................... 4,500,000 4,722,885 Massachusetts State Special Obligation Dedicated Tax Revenue, FGIC Insured, 5.25%, 1/01/29 ....................................................................................... 5,000,000 5,491,750 Massachusetts State Turnpike Authority Metropolitan Highway System Revenue, Series A, MBIA Insured, 5.00%, 1/01/37 ....................................................... 9,000,000 9,309,150 sub. lien, Refunding, Series B, MBIA Insured, 5.125%, 1/01/37 ................................ 10,000,000 10,350,100 sub. lien, Series B, MBIA Insured, 5.25%, 1/01/29 ............................................ 4,600,000 4,823,330 Massachusetts State Water Pollution Abatement Trust Revenue, Pool Program Bonds, Series 6, 5.50%, 8/01/30 ................................................. 2,620,000 2,875,529 Pool Program Bonds, Series 6, Pre-Refunded, 5.50%, 8/01/30 ................................... 1,075,000 1,206,301 Pool Program Bonds, Series 7, 5.125%, 2/01/31 ................................................ 4,300,000 4,535,210 Pool Program Bonds, Series 7, Pre-Refunded, 5.125%, 2/01/31 .................................. 1,700,000 1,869,626 Water Revenue Authority Program, Sub Series A, 5.75%, 8/01/29 ................................ 3,995,000 4,402,410 Water Revenue Authority Program, Sub Series A, Pre-Refunded, 5.75%, 8/01/29 .................. 1,005,000 1,120,776 Massachusetts State Water Resource Authority Revenue, Refunding, Series A, FGIC Insured, 5.75%, 8/01/39 ....................................................... 9,275,000 10,446,711 Series J, FSA Insured, 5.00%, 8/01/32 ........................................................ 9,000,000 9,418,140 Monson GO, AMBAC Insured, 5.25%, 11/01/23 ....................................................... 1,675,000 1,859,334 New Bedford GO, Municipal Purpose Loan, FGIC Insured, 5.00%, 5/01/21 ............................ 3,685,000 3,958,685 Plymouth County COP, Correctional Facility Project, Refunding, AMBAC Insured, 5.125%, 10/01/18 ...................................................................................... 2,000,000 2,160,160 Route 3 North Transportation Improvement Assn. Lease Revenue, MBIA Insured, Pre-Refunded, 5.375%, 6/15/33 ............................................................................... 15,475,000 17,103,899 Salisbury GO, MBIA Insured, 5.30%, 3/15/27 ...................................................... 2,795,000 3,068,631 Shrewsbury GO, Municipal Purpose Loan, 5.00%, 8/15/20 ........................................... 2,075,000 2,231,289 Springfield GO, Municipal Purpose Loan, FGIC Insured, 5.00%, 8/01/21 ................................................................. 5,000,000 5,383,350 FSA Insured, 5.00%, 11/15/18 ................................................................. 1,500,000 1,598,415 Springfield Water and Sewer Commission Revenue, Series A, AMBAC Insured, 5.00%, 11/01/21 ...................................................................................... 2,775,000 2,987,898
Quarterly Statements of Investments | 115 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MASSACHUSETTS INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MASSACHUSETTS (CONT.) University Building Authority Project Revenue, Refunding, Senior Series 1, AMBAC Insured, 5.25%, 11/01/23 ..................................................................................... $ 2,155,000 $ 2,366,707 11/01/28 ..................................................................................... 5,035,000 5,473,095 University of Massachusetts Building Authority Project Revenue, Refunding, Senior Series 2004-1, AMBAC Insured, 5.25%, 11/01/29 ........................................................ 3,000,000 3,271,920 Whitman Hanson Regional School District GO, Refunding, FGIC Insured, 5.00%, 6/15/21 ............. 1,960,000 2,107,921 Winthrop GO, AMBAC Insured, 5.00%, 11/01/20 ..................................................... 1,230,000 1,329,470 Worcester GO, Refunding, Series E, MBIA Insured, 6.00%, 10/01/15 ................................ 1,335,000 1,375,077 ------------ TOTAL LONG TERM INVESTMENTS (COST $438,265,621) ................................................. 474,598,354 ------------ SHORT TERM INVESTMENTS 0.7% BONDS 0.7% MASSACHUSETTS 0.7% (b)Massachusetts State Health and Educational Facilities Authority Revenue, Capital Assets Program, Series D, MBIA Insured, Daily VRDN and Put, 2.92%, 1/01/35 ........................... 3,000,000 3,000,000 (b)Massachusetts State Water Resource Authority Revenue, Multi-Modal, Refunding, Sub Series D, Daily VRDN and Put, 2.97%, 8/01/17 ............................................................ 100,000 100,000 ------------ TOTAL SHORT TERM INVESTMENTS (COST $3,100,000) .................................................. 3,100,000 ------------ TOTAL INVESTMENTS (COST $441,365,621) 99.3% ..................................................... 477,698,354 OTHER ASSETS, LESS LIABILITIES 0.7% ............................................................. 3,494,279 ------------ NET ASSETS 100.0% ............................................................................... $481,192,633 ============
See Selected Portfolio Abbreviations on page 180. (a) Security purchased on a when-issued or delayed delivery basis. (b) Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. 116 | See Notes to Statements of Investments. | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MICHIGAN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 99.4% BONDS 99.4% MICHIGAN 95.0% Adrian City School District GO, FSA Insured, 5.00%, 5/01/26 .................................................................................... $ 1,960,000 $ 2,092,006 5/01/29 .................................................................................... 2,125,000 2,251,820 5/01/34 .................................................................................... 6,690,000 7,063,837 Allegan Public School GO, AMBAC Insured, Pre-Refunded, 5.75%, 5/01/22 ......................... 4,165,000 4,387,994 Allendale Public School District GO, School Building and Site, FGIC Insured, 5.125%, 5/01/27 .................................................................................... 6,450,000 6,852,157 5/01/32 .................................................................................... 5,490,000 5,798,428 Almont Community Schools GO, FGIC Insured, Pre-Refunded, 5.50%, 5/01/26 ....................... 1,925,000 1,971,739 Alpena Public Schools GO, MBIA Insured, Pre-Refunded, 5.625%, 5/01/22 ......................... 1,665,000 1,750,298 Anchor Bay School District GO, School Building and Site, Series I, FGIC Insured, Pre-Refunded, 6.00%, 5/01/29 ....................................... 2,000,000 2,221,360 Series II, FGIC Insured, Pre-Refunded, 5.70%, 5/01/25 ...................................... 5,000,000 5,595,100 Series II, FGIC Insured, Pre-Refunded, 5.75%, 5/01/30 ...................................... 3,750,000 4,204,800 Avondale School District GO, AMBAC Insured, Pre-Refunded, 5.75%, 5/01/22 ................................................ 4,000,000 4,214,160 School Building and Site, FSA Insured, 5.00%, 5/01/29 ...................................... 9,000,000 9,486,270 Birmingham City School District GO, School Building and Site, FSA Insured, 5.00%, 11/01/33 .................................................................................... 2,590,000 2,745,478 Brandon School District GO, FGIC Insured, Pre-Refunded, 5.875%, 5/01/26 ....................... 7,000,000 7,261,660 Brown City Community School District GO, Building and Site, FGIC Insured, 5.00%, 5/01/26 .................................................................................... 4,445,000 4,670,939 5/01/31 .................................................................................... 3,200,000 3,338,816 Caledonia Community Schools GO, MBIA Insured, Pre-Refunded, 5.85%, 5/01/22 .................... 4,500,000 4,749,255 Carmen-Ainsworth Community School District GO, FGIC Insured, 5.00%, 5/01/27 ................... 2,950,000 3,106,468 Central Michigan University Revenue, FGIC Insured, 5.00%, 10/01/27 .............................................................. 500,000 515,250 FGIC Insured, Pre-Refunded, 5.625%, 10/01/22 ............................................... 2,500,000 2,644,950 General, AMBAC Insured, 5.00%, 10/01/34 .................................................... 8,905,000 9,473,406 Series A, AMBAC Insured, 5.05%, 10/01/32 ................................................... 10,000,000 10,577,100 Central Montcalm Public School GO, MBIA Insured, Pre-Refunded, 6.00%, 5/01/29 ................. 1,400,000 1,554,952 Charles Stewart Mott Community College GO, FGIC Insured, Pre-Refunded, 5.50%, 5/01/21 ..................................................................................... 3,550,000 3,940,393 Charlotte Public School District GO, FGIC Insured, Pre-Refunded, 5.375%, 5/01/29 ................................................ 5,000,000 5,438,850 Refunding, MBIA Insured, 5.00%, 5/01/29 .................................................... 8,575,000 9,133,318 De Witt Public Schools GO, AMBAC Insured, Pre-Refunded, 5.70%, 5/01/21 ........................ 6,905,000 7,268,341 Dearborn EDC Hospital Revenue, Oakwood Obligation Group, Refunding, Series A, MBIA Insured, 5.25%, 8/15/21 .......................................... 1,000,000 1,015,960 Series A, FGIC Insured, 5.75%, 11/15/15 .................................................... 100,000 103,204 Detroit City School District GO, School Building and Site Improvements, Series A, FGIC Insured, 5.00%, 5/01/23 .............. 2,650,000 2,822,568 School Building and Site Improvements, Series B, FGIC Insured, 5.00%, 5/01/25 .............. 2,000,000 2,120,500 Series A, FSA Insured, 5.125%, 5/01/31 ..................................................... 38,330,000 40,436,233 Detroit Public Improvements GO, Series A-1, MBIA Insured, 5.00%, 4/01/20 ...................... 10,610,000 11,264,425
Quarterly Statements of Investments | 117 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MICHIGAN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MICHIGAN (CONT.) Detroit Sewage Disposal Revenue, Series A, MBIA Insured, 5.00%, 7/01/27 ..................................................... $22,000,000 $ 22,841,940 Series A, MBIA Insured, Pre-Refunded, 5.50%, 7/01/20 ....................................... 215,000 227,447 Series B, MBIA Insured, Pre-Refunded, 5.25%, 7/01/21 ....................................... 11,585,000 11,725,294 Detroit Water Supply System Revenue, Refunding, FGIC Insured, ETM, 6.25%, 7/01/12 ............................................... 1,455,000 1,638,257 second lien, Series B, FGIC Insured, 5.50%, 7/01/33 ........................................ 20,000,000 22,068,400 senior lien, Series A, FGIC Insured, 5.00%, 7/01/30 ........................................ 11,400,000 11,859,534 senior lien, Series A, FGIC Insured, 5.25%, 7/01/33 ........................................ 4,745,000 5,030,554 senior lien, Series A, FGIC Insured, Pre-Refunded, 5.875%, 7/01/29 ......................... 1,500,000 1,691,415 senior lien, Series A, FGIC Insured, Pre-Refunded, 5.25%, 7/01/33 .......................... 4,880,000 5,437,003 Series A, MBIA Insured, 5.00%, 7/01/27 ..................................................... 5,750,000 5,970,052 Series B, MBIA Insured, 5.00%, 7/01/34 ..................................................... 14,145,000 14,922,834 Detroit/Wayne County Stadium Authority Revenue, FGIC Insured, 5.25%, 2/01/27 .................. 5,500,000 5,785,065 East Detroit School District GO, FGIC Insured, 6.10%, 5/01/16 ............................................................................. 1,025,000 1,064,329 Pre-Refunded, 6.10%, 5/01/16 ............................................................... 4,975,000 5,170,965 East Grand Rapids Public School District GO, FSA Insured, Pre-Refunded, 6.00%, 5/01/29 ..................................................................................... 4,775,000 5,303,497 Eastern Michigan University Revenues, Refunding, Series A, FGIC Insured, 5.00%, 6/01/28 .................................................................................... 6,730,000 7,097,054 6/01/33 .................................................................................... 14,700,000 15,471,162 Eaton Rapids Public Schools GO, School Building and Site, FSA Insured, 5.00%, 5/01/26 .................................................................................... 2,700,000 2,881,845 5/01/29 .................................................................................... 2,750,000 2,903,670 Ecorse Public School District GO, FGIC Insured, Pre-Refunded, 5.50%, 5/01/17 .................. 5,000,000 5,398,950 Farmington Hills EDC Revenue, Botsford Continuing Care, Series A, MBIA Insured, 5.75%, 2/15/25 ...................................................................................... 100,000 102,625 Fennville Public Schools GO, School Building and Site, FGIC Insured, 5.00%, 5/01/30 .................................................................................... 3,200,000 3,378,816 5/01/34 .................................................................................... 3,250,000 3,424,200 Ferris State University Revenue, AMBAC Insured, Pre-Refunded, 5.75%, 10/01/17 ............................................... 2,500,000 2,652,775 AMBAC Insured, Pre-Refunded, 5.85%, 10/01/22 ............................................... 2,500,000 2,657,200 AMBAC Insured, Pre-Refunded, 5.90%, 10/01/26 ............................................... 6,840,000 7,276,187 FGIC Insured, 5.25%, 10/01/26 .............................................................. 1,500,000 1,601,340 FGIC Insured, 5.25%, 10/01/31 .............................................................. 3,255,000 3,443,660 Fowlerville Community School District GO, FGIC Insured, 5.00%, 5/01/30 .................................................................................... 1,990,000 2,105,738 5/01/34 .................................................................................... 8,145,000 8,612,523 Genesee County GO, Water Supply System, AMBAC Insured, 5.00%, 11/01/30 ........................ 4,000,000 4,249,720 Gladstone Area Public Schools GO, AMBAC Insured, Pre-Refunded, 5.50%, 5/01/26 ................. 1,500,000 1,573,380 Grand Blanc Community Schools GO, School Building and Site, FSA Insured, 5.00%, 5/01/28 ..................................................................................... 4,250,000 4,519,917 Grand Rapids Building Authority GO, AMBAC Insured, 5.50%, 8/01/20 ............................. 2,000,000 2,189,260 Grand Rapids Building Authority Revenue, AMBAC Insured, 5.00%, 10/01/28 ....................... 6,000,000 6,322,920
118 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MICHIGAN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MICHIGAN (CONT.) Grand Rapids Downtown Development Authority Tax Increment Revenue, MBIA Insured, 6.875%, 6/01/24 ............................................................................. $ 7,500,000 $ 7,599,675 Grosse-Ile Township School District GO, FGIC Insured, Pre-Refunded, 6.00%, 5/01/22 ............ 5,250,000 5,555,340 Hamilton Community School District GO, FGIC Insured, 5.00%, 5/01/24 ........................... 2,000,000 2,064,380 Hancock Hospital Finance Authority Revenue, Portage Health, MBIA Insured, 5.45%, 8/01/47 ..................................................................................... 4,400,000 4,604,732 Hartland Consolidated School District GO, FGIC Insured, Pre-Refunded, 6.00%, 5/01/29 .......... 30,000,000 33,978,000 Haslett Public School District GO, MBIA Insured, Pre-Refunded, 5.70%, 5/01/26 ................. 3,900,000 4,105,218 Hazel Park Building Authority Revenue, Ice Arena, AMBAC Insured, 4.70%, 4/01/24 ............... 700,000 707,658 Hazel Park School District GO, FSA Insured, 5.00%, 5/01/27 .................................................................................... 9,000,000 9,477,360 5/01/32 .................................................................................... 12,475,000 13,060,202 Hopkins Public Schools GO, FGIC Insured, Pre-Refunded, 5.70%, 5/01/21 ............................................................................. 2,025,000 2,131,555 5.50%, 5/01/26 ............................................................................. 1,000,000 1,048,920 Howell Public Schools GO, MBIA Insured, Pre-Refunded, 5.875%, 5/01/22 ............................................................................ 2,000,000 2,212,200 6.00%, 5/01/25 ............................................................................. 1,600,000 1,693,056 Huron School District GO, FSA Insured, 5.25%, 5/01/21 ............................................................................. 1,500,000 1,616,595 5.375%, 5/01/26 ............................................................................ 2,500,000 2,703,875 Huron Valley School District GO, FGIC Insured, Pre-Refunded, 5.875%, 5/01/16 ............................................................................ 100,000 105,585 5.75%, 5/01/22 ............................................................................. 2,450,000 2,581,173 Jackson Brownfield RDAR, FGIC Insured, 5.125%, 6/01/22 ............................................................................ 2,290,000 2,455,933 5.125%, 6/01/24 ............................................................................ 1,215,000 1,302,273 5.25%, 6/01/26 ............................................................................. 2,820,000 3,043,936 5.375%, 6/01/30 ............................................................................ 5,830,000 6,355,691 Jackson Public Schools GO, School Building and Site, Refunding, FSA Insured, 5.00%, 5/01/34 ..................................................................................... 6,620,000 6,934,781 Jenison Public Schools GO, FGIC Insured, Pre-Refunded, 5.75%, 5/01/16 ......................... 130,000 134,714 Kalamazoo City School District GO, Building and Site, FSA Insured, 5.00%, 5/01/21 ............. 4,000,000 4,223,680 Kalamazoo Hospital Finance Authority Hospital Facility Revenue, Borgess Medical Center, Series A, AMBAC Insured, ETM, 5.625%, 6/01/14 ...................... 3,805,000 3,955,336 Bronson Methodist Hospital, Refunding, MBIA Insured, 5.25%, 5/15/18 ........................ 250,000 264,847 Bronson Methodist Hospital, Refunding, MBIA Insured, 5.50%, 5/15/28 ........................ 10,000,000 10,533,700 Bronson Methodist Hospital, Refunding and Improvement, MBIA Insured, 5.875%, 5/15/26 ................................................................................... 26,165,000 27,428,246 Kenowa Hills Public Schools GO, MBIA Insured, Pre-Refunded, 5.875%, 5/01/21 .................................................................................... 1,510,000 1,551,721 5/01/26 .................................................................................... 7,000,000 7,193,410 Kent County Building Authority GO, 5.00%, 6/01/26 ............................................. 21,885,000 22,496,905 Lake Shore Public Schools GO, Macomb County, FSA Insured, Pre-Refunded, 5.50%, 5/01/20 ..................................................................................... 2,000,000 2,097,840 Lake St. Clair Shores Drain District GO, Series A, MBIA Insured, 5.125%, 10/01/29 ............. 1,000,000 1,059,850
Quarterly Statements of Investments | 119 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MICHIGAN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MICHIGAN (CONT.) Lake Superior State University Revenue, Refunding, AMBAC Insured, 5.25%, 11/15/31 ............. $ 3,320,000 $ 3,530,521 Lakeview Community Schools GO, FGIC Insured, Pre-Refunded, 5.75%, 5/01/16 ..................... 100,000 105,354 Lakewood Public Schools GO, MBIA Insured, Pre-Refunded, 5.75%, 5/01/22 ........................ 800,000 821,208 (a)Lanse Creuse Public School GO, School Building and Site, FSA Insured, 5.00%, 5/01/35 .......... 6,375,000 6,774,139 Lansing Building Authority Revenue, Refunding, MBIA Insured, 5.60%, 6/01/19 ................... 1,470,000 1,490,198 Lenawee County Hospital Finance Authority Hospital Revenue, Lenawee Health Alliance, Refunding, Series A, AMBAC Insured, 5.20%, 7/01/19 .......................................... 2,115,000 2,257,191 Lincoln Consolidated School District GO, FSA Insured, 5.00%, 5/01/28 .......................... 1,000,000 1,023,320 Lincoln Park School District GO, FGIC Insured, Pre-Refunded, 5.90%, 5/01/26 ................................................. 6,050,000 6,277,480 Refunding, FGIC Insured, 5.00%, 5/01/26 .................................................... 900,000 934,749 Livonia Municipal Building Authority GO, FGIC Insured, 5.25%, 5/01/30 ......................... 3,950,000 4,215,203 Lowell Area Schools GO, FGIC Insured, 5.625%, 5/01/25 .................................................................................... 3,125,000 3,441,406 5/01/30 .................................................................................... 3,250,000 3,571,360 Marquette City Hospital Finance Authority Revenue, Marquette General Hospital, Series D, FSA Insured, Pre-Refunded, 5.875%, 4/01/11 ............................................................................ 4,525,000 4,728,987 6.10%, 4/01/19 ............................................................................. 5,225,000 5,470,105 Merrill Community School District GO, FGIC Insured, Pre-Refunded, 5.60%, 5/01/26 .............. 4,000,000 4,203,080 Michigan Higher Education Student Loan Authority Revenue, Series XVII-E, AMBAC Insured, 5.40%, 6/01/19 ............................................................................. 5,000,000 5,251,650 5.50%, 6/01/25 ............................................................................. 5,000,000 5,270,850 Michigan Municipal Bond Authority Revenue, Clean Water State Revolving Fund, 5.00%, 10/01/24 .......................................... 14,785,000 15,734,641 Local Government Loan Program, Series C, MBIA Insured, 6.00%, 11/01/10 ..................... 3,790,000 3,841,506 Michigan State Building Authority Revenue, Facilities Program, Refunding, Series I, FSA Insured, 4.75%, 10/15/18 ..................................................... 3,000,000 3,102,570 Series I, FSA Insured, 5.00%, 10/15/24 ..................................................... 5,000,000 5,272,600 Series III, FSA Insured, 5.00%, 10/15/26 ................................................... 14,000,000 14,802,620 Michigan State COP, AMBAC Insured, 5.50%, 6/01/27 ............................................. 12,000,000 13,062,360 Michigan State HDA Rental Housing Revenue, Refunding, Series A, AMBAC Insured, 6.00%, 4/01/16 ..................................................................................... 200,000 210,112 Michigan State HDA Revenue, Refunding, Series A, AMBAC Insured, 5.95%, 6/01/17 ................ 355,000 355,000 Michigan State Hospital Finance Authority Revenue, Ascension Health Credit, Series A, MBIA Insured, Pre-Refunded, 6.125%, 11/15/23 ............ 15,175,000 17,160,952 Detroit Medical Center Obligation Group, Refunding, Series A, AMBAC Insured, 5.50%, 8/15/24 ................................................................................... 15,000,000 15,986,400 Detroit Medical Center Obligation Group, Refunding, Series A, AMBAC Insured, 5.25%, 8/15/27 ................................................................................... 10,000,000 10,419,700 Mercy Health Services, Refunding, Series T, MBIA Insured, 5.75%, 8/15/15 ................... 10,525,000 11,186,075 Mercy Health Services, Refunding, Series X, MBIA Insured, 6.00%, 8/15/34 ................... 11,000,000 12,242,010 Mercy Health Services, Series Q, AMBAC Insured, ETM, 5.375%, 8/15/26 ....................... 6,000,000 6,164,700 Mercy Health Services, Series R, AMBAC Insured, ETM, 5.375%, 8/15/26 ....................... 1,750,000 1,798,037 Mercy Health Services, Series U, ETM, 5.75%, 8/15/26 ....................................... 300,000 311,556 Mercy Health Services, Series W, FSA Insured, ETM, 5.25%, 8/15/27 .......................... 8,605,000 8,915,124
120 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MICHIGAN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MICHIGAN (CONT.) Michigan State Hospital Finance Authority Revenue, (cont.) Mercy Mount Clemens Corp., Refunding, Series A, MBIA Insured, 5.75%, 5/15/29 ............... $ 4,890,000 $ 5,348,438 Mid-Michigan Health, AMBAC Insured, 5.00%, 4/15/24 ......................................... 7,065,000 7,454,847 Mid-Michigan Health, AMBAC Insured, 5.00%, 4/15/32 ......................................... 1,000,000 1,042,400 Mid-Michigan Obligation Group, Refunding, Series A, FSA Insured, 5.375%, 6/01/27 ........... 7,500,000 8,006,100 Oakwood Obligation Group, Refunding, Series A, FSA Insured, 5.125%, 8/15/25 ................ 7,500,000 7,812,075 Sparrow Obligation Group, MBIA Insured, Pre-Refunded, 5.90%, 11/15/26 ...................... 100,000 106,265 St. John's Hospital, Refunding, Series A, AMBAC Insured, ETM, 6.00%, 5/15/13 ............... 3,445,000 3,696,244 St. John's Hospital, Refunding, Series A, AMBAC Insured, ETM, 6.25%, 5/15/14 ............... 9,545,000 10,611,081 St. John's Hospital, Series A, AMBAC Insured, ETM, 5.125%, 5/15/17 ......................... 14,500,000 15,365,215 Michigan State Strategic Fund Ltd. Obligation Revenue, Collateral, The Detroit Edison Co., Fund, Pollution, Refunding, Series AA, FGIC Insured, 6.95%, 5/01/11 ............................................................................ 5,000,000 5,972,650 Collateral, The Detroit Edison Co., Fund, Pollution, Refunding, Series BB, AMBAC Insured, 7.00%, 5/01/21 ............................................................................ 3,000,000 4,005,120 The Detroit Edison Co. Project Collateral, Refunding, Series BB, MBIA Insured, 6.20%, 8/15/25 ................................................................................... 10,250,000 10,521,420 Michigan State Strategic Fund Resources Recovery Ltd. Obligation Revenue, Detroit Education Exempt Facilities, Refunding, Series D, XLCA Insured, 5.25%, 12/15/32 ............. 12,350,000 13,114,342 Michigan State Trunk Line Revenue, Refunding, Series A, MBIA Insured, 4.75%, 11/01/20 ......................................... 3,300,000 3,413,322 Refunding, Series A, MBIA Insured, 5.00%, 11/01/26 ......................................... 3,050,000 3,208,814 Series A, FSA Insured, Pre-Refunded, 5.00%, 11/01/25 ....................................... 16,265,000 17,909,717 Series A, FSA Insured, Pre-Refunded, 5.25%, 11/01/30 ....................................... 34,680,000 38,685,193 Michigan Technological University Revenue, General, Series A, MBIA Insured, 5.00%, 10/01/34 ..................................................................................... 3,675,000 3,869,040 Milan Area Schools GO, Series A, FGIC Insured, Pre-Refunded, 5.75%, 5/01/24 ................... 3,500,000 3,916,010 Northview Public Schools District GO, MBIA Insured, 5.80%, 5/01/21 ............................................................... 235,000 243,279 Refunding, FGIC Insured, 5.00%, 5/01/21 .................................................... 3,450,000 3,579,341 Oakridge Public Schools GO, FSA Insured, 5.00%, 5/01/23 ............................................................................. 500,000 516,650 5.125%, 5/01/28 ............................................................................ 500,000 513,360 Otsego Public Schools District GO, School Building and Site, FSA Insured, 5.00%, 5/01/34 ..................................................................................... 5,000,000 5,287,000 Ovid Elsie Area Schools GO, School Building and Site, MBIA Insured, 5.00%, 5/01/32 ............ 7,775,000 8,162,273 Oxford Area Community School District GO, FSA Insured, 5.00%, 5/01/26 .................................................................................... 5,425,000 5,700,753 5/01/31 .................................................................................... 4,865,000 5,076,044 Pennfield Schools District GO, School Building and Site, FGIC Insured, 5.00%, 5/01/29 .................................................................................... 1,150,000 1,218,632 5/01/34 .................................................................................... 2,500,000 2,639,700 Pinckney Community Schools GO, Refunding, FSA Insured, 5.00%, 5/01/26 ......................... 2,955,000 3,154,019 Pontiac General Building Authority GO, FGIC Insured, 5.375%, 6/01/23 .................................................................................... 1,620,000 1,779,602 6/01/27 .................................................................................... 2,635,000 2,881,030
Quarterly Statements of Investments | 121 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MICHIGAN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MICHIGAN (CONT.) Port Huron GO, Ltd. Tax, AMBAC Insured, 5.00%, 10/01/22 ....................................... $ 1,600,000 $ 1,692,240 Portage Lake Water and Sewer Authority GO, Refunding, AMBAC Insured, 6.10%, 10/01/14 ............................................................................ 770,000 793,624 6.20%, 10/01/20 ............................................................................ 670,000 690,770 Redford USD, GO, FGIC Insured, Pre-Refunded, 6.00%, 5/01/22 ................................... 14,090,000 14,632,324 River Rouge School District GO, Refunding, FGIC Insured, 5.00%, 5/01/22 ....................... 6,575,000 7,010,265 Rockford Public Schools GO, FGIC Insured, Pre-Refunded, 5.25%, 5/01/22 .................................................................................... 1,250,000 1,305,388 5/01/27 .................................................................................... 3,000,000 3,132,930 Royal Oak Hospital Finance Authority Revenue, William Beaumont Hospital, Series M, MBIA Insured, 5.25%, 11/15/31 ................................................................................... 12,750,000 13,484,528 11/15/35 ................................................................................... 17,600,000 18,492,320 Saginaw City School District GO, School Building and Site, FSA Insured, 5.00%, 5/01/34 ........ 650,000 684,840 Saginaw Hospital Finance Authority Revenue, Covenant Medical Center, Refunding, Series E, MBIA Insured, 5.375%, 7/01/19 ............................................................................ 4,850,000 5,236,691 5.50%, 7/01/24 ............................................................................. 1,750,000 1,877,050 Saginaw Valley State University Revenue, Refunding, AMBAC Insured, 5.25%, 7/01/19 ................................................... 2,540,000 2,714,981 Series A, MBIA Insured, 5.125%, 7/01/30 .................................................... 4,315,000 4,517,762 Schoolcraft Community School District GO, FGIC Insured, Pre-Refunded, 5.75%, 5/01/21 ............................................................................. 3,575,000 3,766,406 5.375%, 5/01/26 ............................................................................ 1,000,000 1,046,610 South Macomb Disposal Authority Revenue, AMBAC Insured, 5.25%, 9/01/20 ........................ 2,000,000 2,137,580 South Redford School District GO, FGIC Insured, Pre-Refunded, 5.50%, 5/01/22 .................. 3,155,000 3,309,343 Southfield Library Building Authority GO, Refunding, MBIA Insured, 5.00%, 5/01/30 ............. 6,535,000 6,933,243 Sparta Area Schools GO, School Building and Site, FGIC Insured, 5.00%, 5/01/30 ................ 2,730,000 2,888,777 St. Clair County Building Authority GO, MBIA Insured, Pre-Refunded, 5.25%, 4/01/18 .................................................................................... 2,065,000 2,127,425 4/01/21 .................................................................................... 2,400,000 2,472,552 St. Clair County EDC, PCR, The Detroit Edison Co., Refunding, Series AA, AMBAC Insured, 6.40%, 8/01/24 ............................................................................... 10,000,000 11,132,000 Taylor Tax Increment Finance Authority Revenue, FSA Insured, 5.00%, 5/01/21 ................... 2,595,000 2,740,112 Tecumseh Public Schools GO, FGIC Insured, Pre-Refunded, 5.50%, 5/01/25 .................................................................................... 5,925,000 6,576,572 5/01/30 .................................................................................... 4,500,000 4,994,865 Thornapple Kellogg School GO, School Building and Site, Refunding, FSA Insured, 5.00%, 5/01/23 .................................................................................... 4,000,000 4,259,520 5/01/28 .................................................................................... 6,250,000 6,589,813 Three Rivers Community Schools GO, Building and Site, MBIA Insured, Pre-Refunded, 6.00%, 5/01/23 .............................................................................. 2,400,000 2,492,376
122 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MICHIGAN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MICHIGAN (CONT.) Warren Consolidated School District GO, FSA Insured, 4.875%, 5/01/22 ............................................................................ $11,850,000 $ 12,424,014 5.00%, 5/01/26 ............................................................................. 14,450,000 15,184,494 Warren Water and Sewer Revenue, FSA Insured, 5.125%, 11/01/23 ................................. 2,450,000 2,611,553 Wayne Charter County Airport Hotel GO, Detroit Metropolitan Airport, Series A, MBIA Insured, 5.25%, 12/01/25 ............................................................................ 17,000,000 18,215,330 5.00%, 12/01/30 ............................................................................ 10,750,000 11,164,950 Wayne Charter County Airport Revenue, Detroit Metropolitan Wayne County, Series A, MBIA Insured, 5.25%, 12/01/18 ............................................................... 5,500,000 5,799,475 Wayne State University Revenue, FGIC Insured, 5.125%, 11/15/29 ................................ 17,900,000 19,036,292 West Bloomfield School District GO, FGIC Insured, Pre-Refunded, 6.00%, 5/01/19 .................................................................................... 2,100,000 2,378,460 5/01/20 .................................................................................... 2,000,000 2,265,200 West Branch Rose City Area School District GO, FGIC Insured, 5.50%, 5/01/24 ................... 1,400,000 1,529,304 West Ottawa Public School District GO, FGIC Insured, 5.60%, 5/01/21 ............................................................... 695,000 726,845 FGIC Insured, 5.60%, 5/01/26 ............................................................... 3,575,000 3,738,807 FGIC Insured, Pre-Refunded, 5.60%, 5/01/26 ................................................. 6,000,000 6,304,620 School Building Site, Refunding, MBIA Insured, 5.00%, 5/01/32 .............................. 6,025,000 6,325,105 Western Townships Utilities Authority GO, Sewer Disposal System, FGIC Insured, 4.75%, 1/01/23 ..................................................................................... 8,500,000 8,867,795 Whitmore Lake Public School District GO, FGIC Insured, 5.00%, 5/01/32 ......................... 9,375,000 9,855,750 Willow Run Community Schools GO, FSA Insured, 5.00%, 5/01/31 .................................. 12,550,000 13,056,895 Wyoming Public Schools GO, FGIC Insured, Pre-Refunded, 5.125%, 5/01/23 ........................ 5,750,000 6,104,545 Ypsilanti Community Utilities GO, Sanitation Sewer System No. 3, FGIC Insured, 5.00%, 5/01/32 ..................................................................................... 6,065,000 6,342,110 Ypsilanti School District GO, FGIC Insured, Pre-Refunded, 5.75%, 5/01/20 ............................................................................. 4,700,000 4,951,638 5.375%, 5/01/26 ............................................................................ 6,750,000 7,064,618 Ypsilanti Water and Sewer Disposal System Revenue, Series C, AMBAC Insured, 5.00%, 9/01/27 ..................................................................................... 2,115,000 2,231,769 -------------- 1,307,605,166 -------------- U.S. TERRITORIES 4.4% Puerto Rico Commonwealth Aqueduct and Sewer Authority Revenue, Series A, FSA Insured, Pre-Refunded, 9.00%, 7/01/09 ................................................................ 1,535,000 1,542,567 Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Refunding, Series D, FSA Insured, 5.00%, 7/01/32 ........................................... 20,000,000 21,108,000 Series B, MBIA Insured, 5.875%, 7/01/35 .................................................... 16,430,000 18,539,941 Series B, MBIA Insured, Pre-Refunded, 5.875%, 7/01/35 ...................................... 8,570,000 9,774,171 Puerto Rico Port Authority Revenue, Series D, FGIC Insured, 7.00%, 7/01/14 .................... 8,700,000 8,732,016 -------------- 59,696,695 -------------- TOTAL LONG TERM INVESTMENTS (COST $1,269,324,765) ............................................. 1,367,301,861 --------------
Quarterly Statements of Investments | 123 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MICHIGAN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM INVESTMENTS 0.2% BONDS 0.2% MICHIGAN 0.2% (b)Detroit Sewage Disposal Revenue, senior lien, Series B, FSA Insured, Daily VRDN and Put, 2.97%, 7/01/33 .............................................................................. $ 1,700,000 $ 1,700,000 (b)University of Michigan Revenues, Refunding, Series A-2, Daily VRDN and Put, 2.98%, 12/01/24 .................................................................................... 1,025,000 1,025,000 -------------- TOTAL SHORT TERM INVESTMENTS (COST $2,725,000) ................................................ 2,725,000 -------------- TOTAL INVESTMENTS (COST $1,272,049,765) 99.6% ................................................. 1,370,026,861 OTHER ASSETS, LESS LIABILITIES 0.4% ........................................................... 6,098,258 -------------- NET ASSETS 100.0% ............................................................................. $1,376,125,119 ==============
See Selected Portfolio Abbreviations on page 180. (a) Security purchased on a when-issued or delayed delivery basis. (b) Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. 124 | See Notes to Statements of Investments. | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MINNESOTA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 98.6% BONDS 93.9% MINNESOTA 91.9% Anoka County Housing and RDA, GO, Housing Development, AMBAC Insured, 4.875%, 2/01/24 .............................................................................. $ 2,195,000 $ 2,325,054 5.00%, 2/01/34 ............................................................................... 2,000,000 2,109,120 Anoka-Hennepin ISD No. 11 GO, School District Credit Enhancement Program, Series A, FSA Insured, 5.00%, 2/01/20 ................................................................... 6,130,000 6,517,293 Bemidji Health Care Facilities First Mortgage Revenue, North Country Health Services, Radian Insured, 5.00%, 9/01/24 ....................................................................... 2,000,000 2,102,740 Bemidji ISD No. 031 GO, Refunding, Series A, FSA Insured, 4.50%, 4/01/19 ........................ 3,550,000 3,702,082 Bemidji Lease Revenue, Minnesota State Bureau of Criminal Apprehension, MBIA Insured, 5.70%, 12/01/17 ............................................................................... 120,000 130,175 Big Lake ISD No. 727 GO, MBIA Insured, 5.70%, 2/01/21 ........................................... 3,085,000 3,221,912 Bloomington ISD No. 271 GO, Series A, FSA Insured, 5.125%, 2/01/24 .............................. 2,000,000 2,142,400 Bloomington Port Authority Lease Revenue, City Hall Lease Obligation, 5.00%, 2/01/18 ............ 1,045,000 1,112,664 Brooklyn Center ISD No. 286 GO, FGIC Insured, 5.00%, 2/01/22 .................................... 1,000,000 1,065,740 Buffalo GO, AMBAC Insured, 5.55%, 6/01/17 ....................................................... 1,000,000 1,026,780 Buffalo ISD No. 877 GO, Refunding, MBIA Insured, 5.00%, 2/01/22 ................................. 4,255,000 4,461,878 Burnsville MFR, Coventry Court, Refunding, Series A, GNMA Secured, 5.90%, 9/20/19 ............................................................................... 400,000 428,236 5.95%, 9/20/29 ............................................................................... 1,275,000 1,357,658 6.00%, 9/20/34 ............................................................................... 1,000,000 1,065,550 Byron ISD No. 531 GO, School Building, Series A, FGIC Insured, 5.00%, 2/01/24 ................... 2,215,000 2,383,384 Cambridge ISD No. 911 GO, Series A, MBIA Insured, 4.125%, 2/01/22 .............................................................................. 1,410,000 1,410,493 4.25%, 2/01/24 ............................................................................... 1,235,000 1,239,804 4.75%, 2/01/30 ............................................................................... 2,500,000 2,588,050 Cass Lake ISD No. 115 GO, Refunding, FGIC Insured, 5.00%, 2/01/22 ............................... 3,805,000 4,087,521 Centennial ISD No. 012 GO, Series A, FSA Insured, 5.00%, 2/01/21 ................................ 1,000,000 1,066,350 Champlin EDA, GO, Housing Development, MBIA Insured, 5.625%, 2/01/26 ............................ 250,000 254,583 Chanhassen Apartments Project GO, Series B, AMBAC Insured, Pre-Refunded, 6.20%, 1/01/25 ........................................................................................ 2,975,000 3,032,834 Cohasset PCR, Collateral Allete Project, Refunding, Radian Insured, 4.95%, 7/01/22 .............. 3,010,000 3,112,190 Columbia Heights ISD No. 013 GO, FSA Insured, 5.50%, 2/01/23 .................................... 4,500,000 4,685,220 Dakota County Housing and RDA, SFMR, GNMA Secured, 5.75%, 4/01/18 ............................................................................... 366,000 377,888 5.85%, 10/01/30 .............................................................................. 617,000 636,318 Dakota County Housing and RDA Governmental Housing GO, Eagan Senior Housing Facility, MBIA Insured, 5.40%, 1/01/27 ................................................................... 1,015,000 1,015,000 Deer River ISD No. 317 GO, FSA Insured, 6.00%, 2/01/25 .......................................... 1,325,000 1,483,179 Eagan GO, Recreational Facilities, Series A, MBIA Insured, 5.00%, 2/01/21 ....................... 3,075,000 3,279,026 Eagan MFHR, Forest Ridge Apartments, Refunding, Series A, GNMA Secured, 5.95%, 9/20/29 ............................................................................... 1,700,000 1,809,361 6.00%, 9/20/34 ............................................................................... 1,480,000 1,574,616 Eden Prairie MFHR, Olympic Ridge, Refunding, Series A, GNMA Secured, 6.25%, 1/20/31 ............................. 2,000,000 2,056,600 Parkway Apartments Project, Series A, GNMA Secured, 5.80%, 2/20/32 ........................... 7,380,000 7,719,701 Edina ISD No. 273 GO, MBIA Insured, 4.25%, 2/01/21 .............................................. 2,700,000 2,728,053 Eveleth EDA, GO, Housing Development, MBIA Insured, 5.80%, 7/01/25 .............................. 1,000,000 1,031,820
Quarterly Statements of Investments | 125 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MINNESOTA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MINNESOTA (CONT.) Farmington ISD No. 192 GO, MBIA Insured, 5.25%, 2/01/24 ......................................... $ 5,915,000 $ 6,379,091 Forest Lake ISD No. 831 GO, Refunding, Series A, FSA Insured, 5.00%, 2/01/18 ...................................................................................... 3,720,000 4,077,976 2/01/19 ...................................................................................... 1,965,000 2,145,780 Ham Lake GO, Anoka County Housing, Senior Housing Project, Series B, MBIA Insured, 6.10%, 1/01/26 ....................................................................................... 2,180,000 2,197,963 Hastings ISD No. 200 GO, Refunding, Series A, FSA Insured, 4.50%, 2/01/22 ....................... 2,700,000 2,770,119 Hibbing Health Care Facilities Revenue, The Duluth Clinic, Ltd., FSA Insured, Pre-Refunded, 5.00%, 11/01/25 ............................................................................... 8,000,000 8,892,240 Hopkins Elderly Housing Revenue, St. Therese Project, Refunding, Series A, GNMA Secured, 5.60%, 11/20/17 .............................................................................. 750,000 784,980 5.70%, 11/20/32 .............................................................................. 3,000,000 3,123,150 Hopkins ISD No. 270 GO, FGIC Insured, 5.125%, 2/01/22 ........................................... 3,880,000 4,175,113 Hubbard County Housing and RDA, GO, Heritage Center Project, MBIA Insured, 5.50%, 8/01/27 ....................................................................................... 1,085,000 1,201,713 Lake Crystal Wellcome Memorial Area Schools ISD No. 2071 GO, School Building, Series B, MBIA Insured, 5.00%, 2/01/34 .................................................................. 3,285,000 3,481,049 Lake Superior ISD No. 381 GO, Series A, FSA Insured, 5.00%, 4/01/23 ............................. 4,195,000 4,485,965 Lakeview ISD No. 2167 GO, MBIA Insured, 5.25%, 2/01/26 .......................................... 3,705,000 4,071,091 Lakeville GO, Capital Improvement Plan, Series A, MBIA Insured, 4.75%, 2/01/30 .................. 2,695,000 2,789,918 Lakeville ISD No. 194 GO, Series A, FGIC Insured, 5.00%, 2/01/23 ................................ 10,180,000 10,907,972 Mahtomedi ISD No. 832 GO, FSA Insured, 5.00%, 2/01/18 ........................................... 3,240,000 3,486,499 Maple Grove HDA Municipal Facility Lease Revenue, AMBAC Insured, 5.55%, 2/01/17 ................. 280,000 296,792 Medford ISD No. 763 GO, Series A, FSA Insured, 5.125%, 2/01/29 .................................. 2,700,000 2,841,183 Minneapolis and St. Paul Housing RDA Health Care System Revenue, Children's Health Care, Series A, FSA Insured, Pre-Refunded, 5.70%, 8/15/16 ............................................................................... 1,005,000 1,031,421 5.50%, 8/15/25 ............................................................................... 9,000,000 9,233,010 Minneapolis and St. Paul Metropolitan Airports Commission Airport Revenue, (a)Refunding, Sub Series A, AMBAC Insured, 5.00%, 1/01/28 .................................... 5,000,000 5,312,600 Series A, AMBAC Insured, 5.20%, 1/01/24 ................................................... 5,000,000 5,255,900 Series A, FGIC Insured, 5.125%, 1/01/31 ................................................... 7,000,000 7,292,040 Series A, FGIC Insured, 5.25%, 1/01/32 .................................................... 7,000,000 7,436,940 Series C, FGIC Insured, 5.25%, 1/01/26 .................................................... 2,000,000 2,136,180 Minneapolis and St. Paul Metropolitan Airports Community Airport Revenue, Series C, FGIC Insured, 5.25%, 1/01/32 .................................................................. 9,000,000 9,561,780 Minneapolis CDA and St. Paul Housing and RDAR, Health Care Facilities, Carondelet, Series B, BIG Insured, Pre-Refunded, 8.875%, 11/01/15 ................................................... 740,000 917,430 Minneapolis GO, Sports Arena Project, Refunding, 5.125%, 10/01/20 ............................................ 8,340,000 8,779,601 Sports Arena Project, Refunding, 5.20%, 10/01/24 ............................................. 3,750,000 3,928,275 Various Purpose, 5.125%, 12/01/28 ............................................................ 3,000,000 3,187,830 Minneapolis Health Care Revenue, Fairview Health Services, AMBAC Insured, 5.00%, 11/15/34 ...................................................................................... 3,500,000 3,701,390 Minneapolis MFR, Riverside Plaza, Refunding, GNMA Secured, 5.20%, 12/20/30 ...................... 5,000,000 5,086,550 Minneapolis Revenue, University Gateway Project, Series A, 5.25%, 12/01/24 ...................... 3,000,000 3,115,620
126 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MINNESOTA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MINNESOTA (CONT.) Minneapolis Special School District No. 001 COP, Refunding, Series A, MBIA Insured, 4.50%, 2/01/21 ............................................ $ 2,715,000 $ 2,775,463 Series A, FSA Insured, 5.00%, 2/01/21 ........................................................ 1,950,000 2,079,383 Series A, MBIA Insured, Pre-Refunded, 5.90%, 2/01/17 ......................................... 5,000,000 5,102,950 Minnesota Agriculture and Economic Development Board Revenue, Benedictine Health, Refunding, Series A, MBIA Insured, 5.125%, 2/15/29 ....................... 14,625,000 15,303,454 Evangelical Lutheran Good Samaritan, Society Project, AMBAC Insured, 5.15%, 12/01/22 .................................................................................... 4,870,000 5,120,902 Evangelical Lutheran Good Samaritan, Society Project, AMBAC Insured, Pre-Refunded, 5.15%, 12/01/22 ............................................................................. 310,000 332,670 Health Care System, Refunding, Series A, MBIA Insured, 5.75%, 11/15/26 ....................... 365,000 393,693 Health Care System, Series A, MBIA Insured, Pre-Refunded, 5.75%, 11/15/26 .................... 17,635,000 19,156,901 Minnesota State HFAR, Rental Housing, Refunding, Series D, MBIA Insured, 5.90%, 8/01/15 ............................ 905,000 922,222 Rental Housing, Refunding, Series D, MBIA Insured, 5.95%, 2/01/18 ............................ 290,000 295,754 Rental Housing, Refunding, Series D, MBIA Insured, 6.00%, 2/01/22 ............................ 330,000 336,547 SF, Series I, MBIA Insured, 6.25%, 1/01/15 ................................................... 1,175,000 1,175,776 SFM, Series B, 5.00%, 7/01/13 ................................................................ 65,000 67,322 SFM, Series D, 5.45%, 1/01/26 ................................................................ 2,720,000 2,781,635 SFM, Series E, AMBAC Insured, 5.40%, 1/01/25 ................................................. 4,250,000 4,340,100 SFM, Series G, AMBAC Insured, 6.25%, 7/01/26 ................................................. 475,000 486,866 Minnesota State Higher Education Facilities Authority Revenue, Bethel, Mandatory Put 4/01/19, Refunding, 5.10%, 4/01/28 ..................................... 7,700,000 7,880,411 St. Johns University, Series 5-I, MBIA Insured, 5.25%, 10/01/21 .............................. 1,750,000 1,910,983 St. Johns University, Series 5-I, MBIA Insured, 5.25%, 10/01/26 .............................. 1,500,000 1,618,605 University of St. Thomas, Series 4-A1, MBIA Insured, 5.625%, 10/01/16 ........................ 1,000,000 1,035,330 Minnetonka MFHR, Cedar Hills Project, Refunding, Series A, GNMA Secured, 5.90%, 10/20/19 .............................................................................. 1,750,000 1,872,238 5.95%, 10/20/29 .............................................................................. 5,955,000 6,350,769 Moorhead EDA, GO, Tax Increment, Series A, MBIA Insured, 5.25%, 2/01/28 ......................... 1,890,000 2,018,388 New Hope MFR, North Ridge, Series A, GNMA Secured, Pre-Refunded, 6.05%, 1/01/17 ............................................................................... 450,000 463,001 6.20%, 1/01/31 ............................................................................... 5,470,000 5,623,105 Nobles County Housing and RDA Public Project Revenue, Annual Appropriate Lease Obligation, AMBAC Insured, 5.625%, 2/01/22 ................................................................ 1,230,000 1,346,985 North St. Paul Maplewood ISD No. 622 GO, Refunding, Series A, 5.125%, 2/01/25 ................... 2,275,000 2,328,121 Northern Municipal Power Agency Electric System Revenue, Refunding, FSA Insured, 5.00%, 1/01/12 ....................................................................................... 1,030,000 1,096,332 Osseo ISD No. 279 GO, Series A, FSA Insured, 5.00%, 2/01/20 ..................................... 3,000,000 3,209,940 Park Rapids ISD No. 309 GO, MBIA Insured, 4.75%, 2/01/21 ................................................................. 2,500,000 2,640,750 MBIA Insured, 5.00%, 2/01/25 ................................................................. 3,000,000 3,194,640 Refunding, Series A, FSA Insured, 4.50%, 2/01/24 ............................................. 2,255,000 2,299,175 Refunding, Series A, FSA Insured, 4.50%, 2/01/25 ............................................. 2,355,000 2,393,669 Pipestone-Jasper ISD No. 2689 GO, Refunding, Series 2004-A, FSA Insured, 5.00%, 3/01/20 ....................................................................................... 1,595,000 1,730,001
Quarterly Statements of Investments | 127 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MINNESOTA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MINNESOTA (CONT.) Plymouth Health Facilities Revenue, Westhealth Project, Series A, FSA Insured, 6.25%, 6/01/16 ............................................................................... $ 1,600,000 $ 1,641,968 6.125%, 6/01/24 .............................................................................. 1,815,000 1,861,500 Princeton ISD No. 477 GO, Mille Lacs County, FSA Insured, 5.125%, 2/01/24 ....................... 1,190,000 1,231,805 Prior Lake ISD No. 719 GO, FGIC Insured, 5.125%, 2/01/19 ................................................................ 1,140,000 1,235,076 FSA Insured, 5.50%, 2/01/20 .................................................................. 2,255,000 2,459,461 FSA Insured, 5.50%, 2/01/21 .................................................................. 2,590,000 2,822,504 Series C, MBIA Insured, 5.00%, 2/01/21 ....................................................... 2,000,000 2,141,360 Series C, MBIA Insured, 5.00%, 2/01/23 ....................................................... 6,025,000 6,431,447 Robbinsdale GO, Housing Development, Senior Housing Project, Series B, FGIC Insured, 5.875%, 1/01/31 ............................................................................... 2,160,000 2,266,078 Robbinsdale ISD No. 281 GO, Refunding, Series A, MBIA Insured, 4.50%, 2/01/21 ...................................................................................... 3,420,000 3,511,246 2/01/22 ...................................................................................... 3,570,000 3,658,179 Rochester Electric Utility Revenue, AMBAC Insured, 5.25%, 12/01/24 .............................. 3,000,000 3,241,680 Rochester Health Care Facilities Revenue, Mayo Foundation, Refunding, Series B, 5.50%, 11/15/27 ...................................................................................... 4,000,000 4,264,200 Rochester ISD No. 535 GO, Series A, MBIA Insured, 5.00%, 2/01/28 ...................................................................................... 1,385,000 1,472,172 2/01/29 ...................................................................................... 1,455,000 1,543,013 Rosemount ISD No. 196 GO, Series A, MBIA Insured, 4.70%, 2/01/25 ................................ 1,000,000 1,038,400 Rush City ISD No. 139 GO, School Building, MBIA Insured, 5.00%, 2/01/21 ............................................................................... 1,680,000 1,798,742 5.125%, 2/01/26 .............................................................................. 4,245,000 4,531,410 Sartell ISD No. 748 GO, Refunding, Series A, FSA Insured, 4.125%, 8/01/20 .............................................................................. 1,785,000 1,797,209 4.25%, 2/01/22 ............................................................................... 2,810,000 2,836,245 Sauk Rapids ISD No. 47 GO, Series A, MBIA Insured, 5.75%, 2/01/23 ...................................................................................... 2,740,000 3,074,910 2/01/26 ...................................................................................... 5,000,000 5,602,950 Scott County GO, MBIA Insured, 5.00%, 2/01/33 ................................................... 5,555,000 5,828,417 Scott County Housing and Redevelopment Authority Facilities Lease Revenue, AMBAC Insured, 5.70%, 2/01/29 ................................................................................ 1,380,000 1,499,329 Scott County Housing and Redevelopment Authority GO, River City Center Project, Series A, FSA Insured, 5.375%, 2/01/27 ............................ 1,520,000 1,604,421 Savage City, Hamilton Apartments Project, AMBAC Insured, 5.70%, 2/01/33 ...................... 2,285,000 2,370,299 Scott County Housing and Redevelopment Authority Special Benefits Tax Revenue, River City Centre Project, Series B, AMBAC Insured, 5.50%, 2/01/27 ....................................... 675,000 714,623 Scott County Housing and Redevelopment Authority Tax Increment Development Revenue, River City Centre Project, Series E, FSA Insured, 5.375%, 2/01/25 ................................... 1,170,000 1,234,982 Shakopee Public Utilities Commission Public Utilities Revenue, MBIA Insured, Pre-Refunded, 6.00%, 2/01/28 ................................................................................ 2,530,000 2,788,414 South Washington County ISD No. 833 GO, Series B, FSA Insured, 5.00%, 2/01/23 ................... 4,000,000 4,253,320
128 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MINNESOTA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MINNESOTA (CONT.) Southeastern Multi-County Housing and RDAR, Housing Development, Goodhue County Apartments B, MBIA Insured, 5.75%, 1/01/31 .................................................... $ 2,415,000 $ 2,528,360 Southern Minnesota Municipal Power Agency Power Supply System Revenue, Refunding, Series A, MBIA Insured, ETM, 5.75%, 1/01/18 ................................................... 1,000,000 1,085,290 St. Clair ISD No. 75 GO, MBIA Insured, 5.70%, 4/01/22 ........................................... 2,250,000 2,458,665 St. Cloud Health Care Revenue, St. Cloud Hospital Obligation, Group A, FSA Insured, 5.875%, 5/01/30 ....................................................................................... 17,785,000 19,936,274 St. Cloud Hospital Facilities Revenue, St. Cloud Hospital, Refunding, Series A, AMBAC Insured, 5.00%, 7/01/15 ................................................................................ 1,165,000 1,203,806 St. Cloud Housing and RDA Sales Tax Revenue, Paramount Theater Project, Refunding, Series A, FGIC Insured, 5.00%, 3/01/22 ........................................................ 1,000,000 1,039,140 St. Francis ISD No. 15 GO, Series A, FSA Insured, 6.35%, 2/01/13 ............................................................................... 1,500,000 1,534,575 6.375%, 2/01/16 .............................................................................. 5,465,000 5,591,843 St. Michael ISD No. 885 GO, FSA Insured, 5.00%, 2/01/23 ......................................... 3,300,000 3,508,989 St. Paul ISD No. 625 GO, School Building, Series B, FSA Insured, 4.25%, 2/01/21 ....................................... 1,000,000 1,012,620 School Building, Series B, FSA Insured, 4.375%, 2/01/22 ...................................... 1,065,000 1,086,417 Series C, FSA Insured, 6.00%, 2/01/20 ........................................................ 1,600,000 1,757,600 St. Paul Port Authority IDR, Brown and Bigelow Co., Series K-1996, FGIC Insured, 9.50%, 12/01/14 ...................................................................................... 170,000 175,528 St. Peter GO, Hospital, Series A, MBIA Insured, 5.00%, 9/01/32 .................................. 6,805,000 7,064,951 Upsala ISD No. 487 GO, School Building, FGIC Insured, 5.00%, 2/01/22 ............................ 1,140,000 1,224,645 Virginia Governmental Housing Project GO, Refunding, MBIA Insured, 5.90%, 2/01/26 ............... 2,915,000 3,030,900 Walker-Hakensack-Akeley ISD No. 113 GO, Series A, FSA Insured, 6.00%, 2/01/23 ...................................................................................... 1,160,000 1,298,481 2/01/25 ...................................................................................... 1,300,000 1,455,194 Washington County GO, Capital Improvement Plan, Series A, 4.75%, 2/01/22 ...................................................................................... 3,200,000 3,363,328 2/01/23 ...................................................................................... 1,760,000 1,851,027 Washington County Housing and RDAR, Government Housing, Landfall Terrace Project, Refunding, 5.35%, 2/01/22 ............................................................................... 1,000,000 1,053,340 5.40%, 8/01/27 ............................................................................... 2,015,000 2,127,659 Western Minnesota Municipal Power Agency Revenue, MBIA Insured, 5.00%, 1/01/26 ................................................................. 8,565,000 9,062,455 Refunding, Series A, AMBAC Insured, 5.50%, 1/01/12 ........................................... 2,745,000 2,839,373 Refunding, Series A, AMBAC Insured, 5.50%, 1/01/13 ........................................... 4,500,000 4,654,710 Refunding, Series B, MBIA Insured, 5.00%, 1/01/15 ............................................ 2,000,000 2,219,940 Series A, MBIA Insured, 5.00%, 1/01/30 ....................................................... 5,200,000 5,460,572 White Bear Lake ISD No. 624 GO, Series 4-A, FSA Insured, 4.00%, 2/01/19 ......................... 1,405,000 1,413,247 Willmar GO, Rice Memorial Hospital Project, FSA Insured, 5.00%, 2/01/19 ...................................................................................... 2,000,000 2,162,280 2/01/22 ...................................................................................... 2,550,000 2,735,844 2/01/25 ...................................................................................... 3,000,000 3,183,930 2/01/32 ...................................................................................... 5,415,000 5,677,898
Quarterly Statements of Investments | 129 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MINNESOTA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MINNESOTA (CONT.) Worthington ISD No. 518 GO, Refunding, Series A, FSA Insured, 4.25%, 2/01/22 ............................................. $ 5,010,000 $ 5,075,030 Refunding, Series A, FSA Insured, 4.25%, 2/01/24 ............................................. 2,840,000 2,860,363 Series A, FSA Insured, 5.00%, 2/01/24 ........................................................ 5,000,000 5,324,400 ------------ 532,924,549 ------------ U.S. TERRITORIES 2.0% Puerto Rico Commonwealth GO, Public Improvement, FSA Insured, 5.00%, 7/01/23 ............................................................................... 955,000 1,014,515 5.125%, 7/01/30 .............................................................................. 420,000 449,232 Pre-Refunded, 5.00%, 7/01/23 ................................................................. 1,545,000 1,704,645 Pre-Refunded, 5.125%, 7/01/30 ................................................................ 580,000 643,916 Puerto Rico PBA Revenue, Government Facilities, Refunding, Series F, XLCA Insured, 5.25%, 7/01/25 ........................................................................................ 2,500,000 2,955,225 Puerto Rico Port Authority Revenue, Series D, FGIC Insured, 7.00%, 7/01/14 ...................... 1,300,000 1,304,784 Puerto Rico Public Finance Corp. Commonwealth Revenue, Series E, AMBAC Insured, 5.50%, 8/01/27 ............................................................................... 625,000 748,494 ETM, 5.50%, 8/01/27 .......................................................................... 375,000 449,096 Virgin Islands PFAR, Gross Receipts Taxes Loan Note, FSA Insured, 5.25%, 10/01/20 ..................................................................................... 1,160,000 1,294,862 10/01/21 ..................................................................................... 1,000,000 1,112,100 ------------ 11,676,869 ------------ TOTAL BONDS (COST $515,086,515) ................................................................. 544,601,418 ------------ ZERO COUPON BONDS 4.7% MINNESOTA 4.7% Cambridge ISD No. 911 GO, Capital Appreciation, Series B, MBIA Insured, 2/01/30 ................. 2,240,000 645,859 Southern Minnesota Municipal Power Agency Power Supply System Revenue, Capital Appreciation, Refunding, Series A, MBIA Insured, 1/01/23 ............................. 4,000,000 1,826,400 Capital Appreciation, Refunding, Series A, MBIA Insured, 1/01/26 ............................. 5,000,000 1,945,550 Capital Appreciation, Refunding, Series A, MBIA Insured, 1/01/27 ............................. 6,600,000 2,432,364 Capital Appreciation, Series A, MBIA Insured, 1/01/19 ........................................ 5,875,000 3,292,761 Capital Appreciation, Series A, MBIA Insured, 1/01/20 ........................................ 14,035,000 7,473,497 Series A, AMBAC Insured, 1/01/18 ............................................................. 15,985,000 9,418,682 ------------ TOTAL ZERO COUPON BONDS (COST $24,696,414) ...................................................... 27,035,113 ------------ TOTAL LONG TERM INVESTMENTS (COST $539,782,929) ................................................. 571,636,531 ------------
130 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MINNESOTA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM INVESTMENTS 0.4% BONDS 0.4% MINNESOTA 0.0%(b) (c)Minneapolis GO, Convention Center, Weekly VRDN and Put, 2.82%, 12/01/18 ......................... $ 100,000 $ 100,000 ------------ U.S. TERRITORIES 0.4% (c)Puerto Rico Commonwealth Government Development Bank Revenue, Refunding, MBIA Insured, Weekly VRDN and Put, 2.85%, 12/01/15 ............................................ 1,400,000 1,400,000 (c)Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Series A, AMBAC Insured, Weekly VRDN and Put, 2.90%, 7/01/28 .................................. 1,100,000 1,100,000 ------------ 2,500,000 ------------ TOTAL SHORT TERM INVESTMENTS (COST $2,600,000) .................................................. 2,600,000 ------------ TOTAL INVESTMENTS (COST $542,382,929) 99.0% ..................................................... 574,236,531 OTHER ASSETS, LESS LIABILITIES 1.0% ............................................................. 5,797,835 ------------ NET ASSETS 100.0% ............................................................................... $580,034,366 ============
See Selected Portfolio Abbreviations on page 180. (a) Security purchased on a when-issued or delayed delivery basis. (b) Rounds to less than 0.05% of net assets. (c) Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. Quarterly Statements of Investments | See Notes to Statements of Investments. | 131 This page intentionally left blank. 132 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MISSOURI TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 99.0% BONDS 99.0% MISSOURI 81.2% BI-State Development Agency Revenue, Missouri Illinois Metropolitan District, Metrolink Cross County Project, Series B, FSA Insured, 5.00%, 10/01/32 ........................................ $ 4,500,000 $ 4,744,035 Boone County IDA Health Care Revenue, Retirement Center Project, GNMA Secured, 5.70%, 10/20/22 ...................................................................................... 1,515,000 1,643,851 (a)Branson Reorganized School District No. R-4 GO, FSA Insured, 5.00%, 3/01/24 ..................... 4,500,000 4,852,395 Cape Girardeau County IDA Health Care Facilities Revenue, St. Francis Medical Center, Series A, 5.50%, 6/01/27 ...................................................................................... 6,350,000 6,781,228 6/01/32 ...................................................................................... 5,000,000 5,332,600 Cape Girardeau County IDA Solid Waste Disposal Revenue, Procter and Gamble Paper Products, 5.30%, 5/15/28 ................................................................................ 6,875,000 7,127,931 Curators University System Facilities Revenue, Series A, 5.00%, 11/01/31 ........................ 17,845,000 18,886,077 Dunklin County COP, FGIC Insured, 5.00%, 12/01/24 ............................................... 1,000,000 1,064,520 Florissant COP, FGIC Insured, 5.00%, 8/01/22 .................................................... 1,285,000 1,375,824 Grandview COP, FGIC Insured, 5.00%, 1/01/23 ..................................................... 2,410,000 2,577,519 Hazelwood IDA, MFHR, Lakes Apartments Project, Refunding, Series A, GNMA Secured, 6.10%, 9/20/26 ....................................................................................... 1,745,000 1,813,736 Hazelwood School District GO, Missouri Direct DepositPage, Series A, FGIC Insured, 5.00%, 3/01/24 ....................................................................................... 3,000,000 3,247,500 Hickory County School District R-1 Skyline GO, Direct Deposit Program, 6.05%, 3/01/20 ........... 1,100,000 1,234,064 High Ridge Fire Protection District GO, FSA Insured, 5.375%, 11/01/20 ........................... 1,000,000 1,054,580 Howard Bend Levee District Special Tax, 5.65%, 3/01/13 ............................................................................... 1,000,000 1,065,410 5.85%, 3/01/19 ............................................................................... 4,000,000 4,264,720 Jackson County Consolidated School District No. 2 GO, Direct Deposit Program, 5.20%, 3/01/20 ....................................................................................... 2,000,000 2,153,860 Jackson County Reorganized School District No. 7 Lees Summit GO, Direct Deposit, Refunding and Improvement, FSA Insured, 5.00%, 3/01/21 .................................................. 5,700,000 6,078,822 Jackson County Special Obligation Revenue, MBIA Insured, 5.00%, 12/01/27 ........................ 3,105,000 3,281,706 Jasper County Reorganized School District No. R-7 GO, Direct Deposit Program, 6.00%, 3/01/20 ....................................................................................... 1,025,000 1,147,949 Jefferson County Conservation Public Water Supply District No. C-1 Waterworks Revenue, AMBAC Insured, 5.00%, 12/01/26 ................................................................ 4,500,000 4,758,660 Jefferson County Consolidated School District No. 6 Lease Particiation COP, FSA Insured, 5.00%, 3/01/25 ................................................................................ 1,050,000 1,135,743 Joplin IDA Health Facilities Revenue, Freeman Health Systems Project, 5.50%, 2/15/29 ............................................................................... 2,000,000 2,109,400 5.75%, 2/15/35 ............................................................................... 2,500,000 2,708,200 Kansas City IDA, MFHR, Mews Apartments Project, Series A, FNMA Insured, 6.30%, 7/01/20 ....................................................................................... 3,345,000 3,345,000 Kansas City Land Clearance Redevelopment Authority Lease Revenue, Municipal Auditorium and Muehlebach Hotel, Series A, FSA Insured, 5.90%, 12/01/18 .................................. 5,000,000 5,173,450 Kansas City MAC Revenue, Leasehold Roe Bartle, Refunding, Series A, MBIA Insured, 5.00%, 4/15/20 ....................................................................................... 10,000,000 10,255,600 Kansas City Sanitary Sewer System Revenue, Series B, MBIA Insured, 5.00%, 1/01/25 ............... 1,120,000 1,208,357 Kansas City Tax Increment Financing Commerce Tax Increment Revenue, Blue Parkway Town Center Project, MBIA Insured, 5.00%, 7/01/27 .................................................. 1,730,000 1,845,616
Quarterly Statements of Investments | 133 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MISSOURI TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MISSOURI (CONT.) Lake of the Ozarks Community Board Corp. Bridge System Revenue, Pre-Refunded, 6.25%, 12/01/16 ................................................................ $ 2,000,000 $ 2,129,000 Pre-Refunded, 6.40%, 12/01/25 ................................................................ 5,000,000 5,356,050 Refunding, 5.25%, 12/01/14 ................................................................... 750,000 766,852 Refunding, 5.25%, 12/01/26 ................................................................... 800,000 769,216 Lee's Summit IDAR, John Knox Village Project, 6.55%, 8/15/10 ............................................................................... 1,000,000 1,023,750 6.625%, 8/15/13 .............................................................................. 2,000,000 2,048,160 5.70%, 8/15/22 ............................................................................... 1,500,000 1,603,080 Lee's Summit Water and Sewer Revenue, Series A, AMBAC Insured, 5.00%, 7/01/22 ................... 1,995,000 2,134,630 Metropolitan St. Louis Sewer District Wastewater Systems Revenue, Series A, MBIA Insured, 5.00%, 5/01/34 ................................................................................ 24,730,000 26,243,723 Missouri Development Finance Board Cultural Facilities Revenue, Nelson Gallery Foundation, Series A, MBIA Insured, 5.00%, 12/01/30 ....................................................... 9,500,000 9,977,660 Missouri School Board Association COP, Pooled Finance Program, Series A-5, 7.375%, 3/01/06 ....................................................................................... 20,000 20,219 Missouri School Board Association Lease COP, Republic R-3 School District Project, Refunding, FSA Insured, 6.00%, 3/01/16 ................................................................... 2,220,000 2,272,370 Missouri Southern State College Revenue, Auxiliary Enterprise System, MBIA Insured, 5.50%, 4/01/23 ....................................................................................... 1,200,000 1,315,536 Missouri State Board of Public Buildings State Office Building, Special Obligation, Series A, 5.125%, 5/01/26 ............................................................................... 3,960,000 4,213,757 Missouri State Development Finance Board Infrastructure Facilities Revenue, Midtown Redevelopment Project, Series A, MBIA Insured, 5.75%, 4/01/22 ................................. 10,000,000 11,079,900 Missouri State Development Finance Board Recreation Facilities Revenue, YMCA Greater St. Louis Project, Series A, 5.40%, 9/01/18 ................................................... 7,420,000 7,916,546 Missouri State Development Finance Board Solid Waste Disposal Revenue, Procter and Gamble Paper Product, 5.20%, 3/15/29 ................................................................. 3,000,000 3,342,030 Missouri State Environmental Improvement and Energy Resources Authority PCR, National Rural Association, Electric Project, Series G-6, AMBAC Insured, 5.85%, 2/01/13 ................ 2,100,000 2,130,891 Missouri State Environmental Improvement and Energy Resources Authority Water PCR, State Revolving Fund, Series A, 7.00%, 10/01/10 .................................................................... 685,000 688,014 Series A, 6.55%, 7/01/14 ..................................................................... 890,000 892,964 Series A, 5.75%, 1/01/16 ..................................................................... 150,000 153,937 Series B, 7.125%, 12/01/10 ................................................................... 275,000 275,943 Series B, 5.80%, 1/01/15 ..................................................................... 125,000 127,840 Series B, 6.05%, 7/01/16 ..................................................................... 485,000 491,271 Series B, 7.20%, 7/01/16 ..................................................................... 825,000 836,393 Series B, 5.50%, 7/01/21 ..................................................................... 710,000 781,334 Series B, Pre-Refunded, 5.50%, 7/01/21 ....................................................... 730,000 815,403 Missouri State GO, Stormwater Control, Series A, 5.00%, 6/01/26 ................................. 1,895,000 1,988,935 Missouri State HDC, MFHR, FHA Insured, 8.50%, 12/01/29 ........................................................... 65,000 66,906 SFMR, Homeowner Loan, Series D, GNMA Secured, 6.125%, 3/01/28 ................................ 235,000 241,770 SFMR, Series B, GNMA Secured, 6.10%, 9/01/14 ................................................. 550,000 562,529 SFMR, Series B, GNMA Secured, 6.45%, 9/01/27 ................................................. 345,000 355,936
134 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MISSOURI TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MISSOURI (CONT.) Missouri State Health and Educational Facilities Authority Educational Facilities Revenue, Maryville University of St. Louis Project, 6.50%, 6/15/22 .................................... $ 1,750,000 $ 1,909,337 Maryville University of St. Louis Project, 6.75%, 6/15/30 .................................... 4,500,000 4,940,820 Washington University, 5.00%, 11/15/37 ....................................................... 9,150,000 9,449,937 Washington University, Refunding, Series B, 5.00%, 3/01/30 ................................... 14,000,000 14,638,260 Washington University, Series B, Pre-Refunded, 6.00%, 3/01/30 ................................ 13,550,000 15,374,778 Webster University, MBIA Insured, 5.30%, 4/01/27 ............................................. 8,000,000 8,604,240 Missouri State Health and Educational Facilities Authority Health Facilities Revenue, Children's Mercy Hospital, 5.30%, 5/15/28 .................................................... 12,420,000 12,796,823 Freeman Health Systems Project, 5.25%, 2/15/28 ............................................... 2,750,000 2,795,540 Improvement, Jefferson Memorial Hospital, Refunding, Radian Insured, 5.00%, 8/15/21 .......... 4,585,000 4,819,339 Improvement, Jefferson Memorial Hospital, Refunding, Radian Insured, 5.25%, 8/15/28 .......... 4,900,000 5,196,744 Lake of the Ozarks General Hospital, 6.25%, 2/15/11 .......................................... 410,000 422,890 Lake of the Ozarks General Hospital, Pre-Refunded, 6.25%, 2/15/11 ............................ 840,000 876,506 Lake of the Ozarks General Hospital, Pre-Refunded, 6.50%, 2/15/21 ............................ 670,000 700,271 Lake of the Ozarks General Hospital, Refunding, 6.50%, 2/15/21 ............................... 330,000 339,870 Lake Regional Health Systems Project, 5.60%, 2/15/25 ......................................... 1,250,000 1,323,988 Lake Regional Health Systems Project, 5.70%, 2/15/34 ......................................... 2,750,000 2,916,100 Lutheran Senior Services, Refunding, 5.875%, 2/01/23 ......................................... 1,000,000 1,052,330 Lutheran Senior Services, Series A, 6.375%, 2/01/27 .......................................... 4,000,000 4,150,040 St. Luke's Episcopal, Presbyterian Hospital, FSA Insured, 5.25%, 12/01/26 .................... 8,500,000 9,133,080 Missouri State GO, State Water Pollution Control, Series A, 5.00%, 6/01/26 ...................... 3,785,000 3,972,622 Missouri State Health and Educational Facilities Authority Revenue, Series A, 5.00%, 2/15/33 ..................................................................... 20,125,000 21,187,198 SSM Healthcare System, Series A, AMBAC Insured, 5.25%, 6/01/28 ............................... 16,385,000 17,469,851 Missouri State Highways and Transportation Commission State Road Revenue, Series A, 5.00%, 2/01/21 ...................................................................................... 10,000,000 10,669,500 2/01/22 ...................................................................................... 3,000,000 3,189,990 Missouri State Housing Development Commission Revenue, SF, Homeowner Loan, Series C-1, GNMA Secured, 5.90%, 9/01/25 ............................................................................... 1,860,000 1,949,213 5.95%, 3/01/28 ............................................................................... 1,330,000 1,365,746 Monarch-Chesterfield Levee District Revenue, MBIA Insured, 5.75%, 3/01/19 ....................... 1,920,000 2,147,635 North Kansas City Hospital Revenue, North Kansas City Hospital, Series A, FSA Insured, 5.00%, 11/15/20 .............................................................................. 1,000,000 1,069,600 5.00%, 11/15/21 .............................................................................. 1,000,000 1,069,600 5.00%, 11/15/22 .............................................................................. 1,000,000 1,066,650 5.00%, 11/15/28 .............................................................................. 1,965,000 2,070,088 5.125%, 11/15/33 ............................................................................. 2,755,000 2,936,665 Northeast State University Recreational Facility Revenue, Campus Recreational Center Project, AMBAC Insured, 5.80%, 6/01/15 ................................................................. 1,000,000 1,000,000 Northwest State University Revenue, Housing System, MBIA Insured, 4.50%, 6/01/28 ................ 3,250,000 3,295,760 Pulaski County IDA, MFHR, St. Robert Project, Series A, GNMA Secured, 6.00%, 8/20/39 ............ 1,600,000 1,687,040 Springfield Missouri IDAR, Bethesda Living Centers, Refunding, Series A, 5.625%, 8/15/18 .............................................................................. 3,000,000 2,916,750 5.70%, 8/15/28 ............................................................................... 5,250,000 4,898,250
Quarterly Statements of Investments | 135 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MISSOURI TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MISSOURI (CONT.) Springfield Public Building Corp. Leasehold Revenue, Capital Improvement Program, AMBAC Insured, 5.00%, 3/01/24 ................................... $ 2,600,000 $ 2,796,066 Springfield Recreational, Series B, AMBAC Insured, 6.125%, 6/01/21 ........................... 3,230,000 3,669,280 Springfield Recreational, Series B, AMBAC Insured, 6.15%, 6/01/25 ............................ 3,645,000 4,137,695 Springfield School District No. R 12 GO, Missouri Direct Deposit Program, 5.85%, 3/01/20 ........ 1,500,000 1,670,115 St. Charles County Public Water Supply District No. 2, COP, Missouri Project, Series A, MBIA Insured, 5.25%, 12/01/28 ................................................................. 1,000,000 1,071,460 St. Louis Airport Revenue, Airport Development Program, Series A, MBIA Insured, 5.00%, 7/01/26 .......................... 5,000,000 5,217,900 Airport Development Program, Series A, MBIA Insured, 5.25%, 7/01/31 .......................... 18,835,000 19,864,898 Capital Improvement Program, Series A, MBIA Insured, 5.00%, 7/01/32 .......................... 2,540,000 2,636,418 St. Louis County IDA Health Facilities Revenue, Jewish Center Healthcare, GNMA Secured, 5.40%, 2/20/31 ....................................... 1,000,000 1,034,560 Jewish Center Healthcare, GNMA Secured, 5.50%, 2/20/36 ....................................... 10,460,000 11,275,985 Mary Queen Healthcare, GNMA Secured, 5.375%, 9/20/31 ......................................... 3,310,000 3,540,376 Mother of Perpetual Help, GNMA Secured, 6.40%, 8/01/35 ....................................... 1,895,000 1,981,374 St. Louis County IDA, MFHR, Lucas Hunt Village Project, GNMA Secured, 5.20%, 9/20/31 ..................................... 1,095,000 1,128,584 South Summit Apartments, Refunding, Series A, GNMA Secured, 6.10%, 4/20/32 ................... 1,250,000 1,303,975 St. Louis County IDAR, Bethesda Living Centers, Series B, 5.85%, 8/15/28 ........................ 1,500,000 1,426,860 St. Louis IDA Sewer and Solid Waste Disposal Facilities Revenue, Anheuser-Busch Project, 5.875%, 11/01/26 .............................................................................. 1,100,000 1,127,467 St. Louis Municipal Finance Corp. Leasehold Revenue, City Justice Center, Series A, AMBAC Insured, 6.00%, 2/15/20 ................................. 1,000,000 1,129,840 Carnahan Courthouse, Series A, FGIC Insured, 5.125%, 2/15/27 ................................. 4,750,000 5,052,480 Taney County IDA Hospital Revenue, The Skaggs Community Hospital Association, 5.30%, 5/15/18 ............................................................................... 3,000,000 3,080,970 5.40%, 5/15/28 ............................................................................... 1,500,000 1,522,695 Taney County Reorganized School District GO, No. R-V Hollister, Refunding, FSA Insured, 5.00%, 3/01/20 ................................................................................ 1,300,000 1,392,924 University of Missouri Revenues, System Facilities, Pre-Refunded, 5.80%, 11/01/27 ................................................................ 1,000,000 1,075,880 Refunding, Series B, 5.00%, 11/01/27 ......................................................... 7,865,000 8,264,778 West Plains IDA Hospital Revenue, Ozarks Medical Center Project, Refunding, 5.50%, 11/15/12 .............................................................................. 1,000,000 1,014,520 5.60%, 11/15/17 .............................................................................. 1,700,000 1,707,242 5.65%, 11/15/22 .............................................................................. 1,500,000 1,475,460 West Plains Waterworks System Revenue, AMBAC Insured, 5.625%, 3/01/21 ........................... 1,250,000 1,373,713 ------------ 481,267,464 ------------ U. S. TERRITORIES 17.8% Childrens Trust Fund Puerto Rico Tobacco Settlement Revenue, Pre-Refunded, 6.00%, 7/01/26 ....................................................................................... 2,785,000 3,154,681 Puerto Rico Commonwealth Aqueduct and Sewer Authority Revenue, Series A, FSA Insured, Pre-Refunded, 9.00%, 7/01/09 .................................................................. 30,000 30,148
136 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MISSOURI TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) U. S. TERRITORIES (CONT.) Puerto Rico Commonwealth GO, Public Improvement, Series A, Pre-Refunded, 5.375%, 7/01/28 ................................................................ $ 1,025,000 $ 1,152,038 5.375%, 7/01/28 .............................................................................. 1,975,000 2,122,374 5.125%, 7/01/31 .............................................................................. 5,000,000 5,223,850 Puerto Rico Commonwealth Highway and Transportation Authority Highway Revenue, Series Y, 5.50%, 7/01/36 ................................................................................ 11,750,000 13,158,003 Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Series D, 5.375%, 7/01/36 .................................................................... 2,500,000 2,695,625 Series G, 5.00%, 7/01/42 ..................................................................... 2,500,000 2,592,350 Puerto Rico Electric Power Authority Power Revenue, Series NN, 5.125%, 7/01/29 ................................................................... 3,250,000 3,454,035 Refunding, Series SS, FSA Insured, 5.00%, 7/01/30 ............................................ 16,900,000 18,202,652 Series II, 5.25%, 7/01/31 .................................................................... 10,000,000 10,730,400 Puerto Rico HFC Revenue, MFM, Portfolio A-I, 7.50%, 4/01/22 ..................................... 140,000 140,442 Puerto Rico Industrial Tourist Educational Medical and Environmental Control Facilities Financing Authority Industrial Revenue, Guaynabo Municipal Government, 5.625%, 7/01/22 ...................................................................................... 2,500,000 2,584,600 Puerto Rico PBA Revenue, Guaranteed, Government Facilities, Series D, 5.375%, 7/01/33 .................................................................... 2,150,000 2,319,592 Series D, Pre-Refunded, 5.375%, 7/01/33 ...................................................... 5,885,000 6,610,503 Series I, 5.375%, 7/01/34 .................................................................... 10,000,000 10,886,800 Series I, 5.00%, 7/01/36 ..................................................................... 14,450,000 15,158,773 Virgin Islands PFAR, senior lien, Fund Loan Notes, Refunding, Series A, 5.40%, 10/01/12 .............................................................................. 2,500,000 2,679,100 5.50%, 10/01/22 .............................................................................. 2,500,000 2,651,175 ------------ 105,547,141 ------------ TOTAL LONG TERM INVESTMENTS (COST $548,383,415) ................................................. 586,814,605 ------------ SHORT TERM INVESTMENTS 0.5% BONDS 0.5% MISSOURI 0.5% (b)Missouri State Health and Educational Facilities Authority Educational Facilities Revenue, Rockhurst University, Daily VRDN and Put, 2.97%, 11/01/32 .................................... 600,000 600,000 Washington University, Series B, Daily VRDN and Put, 2.96%, 2/15/33 .......................... 2,435,000 2,435,000 ------------ TOTAL SHORT TERM INVESTMENTS (COST $3,035,000) .................................................. 3,035,000 ------------ TOTAL INVESTMENTS (COST $551,418,415) 99.5% ..................................................... 589,849,605 OTHER ASSETS, LESS LIABILITIES 0.5% ............................................................. 3,033,485 ------------ NET ASSETS 100.0% ............................................................................... $592,883,090 ============
See Selected Portfolio Abbreviations on page 180. (a) Security purchased on a when-issued or delayed delivery basis. (b) Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. Quarterly Statements of Investments | See Notes to Statements of Investments. | 137 This page intentionally left blank. 138 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN NEW JERSEY TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 98.0% BONDS 97.5% DELAWARE 2.4% Delaware River and Bay Authority Revenue, FGIC Insured, Pre-Refunded, 5.25%, 1/01/26 ................................................. $ 9,000,000 $ 9,306,090 MBIA Insured, 5.00%, 1/01/27 ............................................................... 10,000,000 10,534,200 Series A, AMBAC Insured, Pre-Refunded, 5.75%, 1/01/29 ...................................... 4,000,000 4,489,240 -------------- 24,329,530 -------------- NEW JERSEY 72.0% Aberdeen Township GO, Refunding, FGIC Insured, 5.70%, 2/01/22 ................................. 4,100,000 4,351,781 Allamuchy Town Board of Education COP, MBIA Insured, 6.00%, 11/01/14 .......................... 1,000,000 1,023,580 Atlantic County Improvement Authority Luxury Tax Revenue, Convention Center Project, MBIA Insured, ETM, 7.40%, 7/01/16 ........................................................... 9,500,000 12,101,290 Bergen County Improvement Authority School District Revenue GO, Wyckoff Township Board of Education Project, 5.00%, 4/01/32 ........................................................ 3,400,000 3,631,098 Berkeley Township Board of Education GO, FSA Insured, 4.75%, 8/01/22 .......................... 1,975,000 2,057,278 Branchburg Township Board of Education GO, FGIC Insured, 5.00%, 7/15/26 .................................................................................... 1,230,000 1,296,100 7/15/27 .................................................................................... 1,300,000 1,367,704 7/15/28 .................................................................................... 1,365,000 1,434,574 7/15/29 .................................................................................... 1,440,000 1,511,813 Camden County Improvement Authority Health System Revenue, Catholic Health East, Series B, AMBAC Insured, 5.00%, 11/15/28 .................................................... 11,600,000 12,068,408 Cape May County IPC Financing Authority Revenue, Atlantic City Electric Co., Refunding, Series A, MBIA Insured, 6.80%, 3/01/21 ...................................................... 5,400,000 7,213,860 Carteret Board of Education COP, MBIA Insured, 5.75%, 1/15/30 ................................. 1,155,000 1,283,563 East Orange GO, Water Utility, AMBAC Insured, Pre-Refunded, 5.70%, 6/15/23 .................................................................................... 1,200,000 1,307,148 6/15/24 .................................................................................... 1,385,000 1,508,667 6/15/25 .................................................................................... 1,465,000 1,595,810 Egg Harbor Township School District GO, FGIC Insured, Pre-Refunded, 5.125%, 7/15/24 ................................................ 4,870,000 5,435,602 MBIA Insured, 5.00%, 4/01/29 ............................................................... 3,195,000 3,404,209 MBIA Insured, 5.00%, 4/01/30 ............................................................... 3,027,000 3,220,183 Freehold Township Board of Education GO, MBIA Insured, 5.00%, 2/15/30 ......................... 1,500,000 1,568,685 Gloucester County Improvement Authority Solid Waste Resource Recovery Revenue, Waste Management Inc. Project, Mandatory Put 12/01/09, Refunding, Series A, 6.85%, 12/01/29 .................................................................. 1,375,000 1,546,174 Series B, 7.00%, 12/01/29 .................................................................. 1,250,000 1,405,050 Hammonton School District GO, FGIC Insured, 5.00%, 8/01/26 .................................................................................... 1,155,000 1,226,980 8/01/27 .................................................................................... 1,215,000 1,287,621 Higher Education Student Assistance Authority Student Loan Revenue, Series A, MBIA Insured, 6.15%, 6/01/19 ................................................................ 1,705,000 1,756,644 Highland Park School District GO, Refunding, MBIA Insured, 5.125%, 2/15/25 .................... 7,120,000 7,335,522 Hoboken GO, Parking Utility, Series A, FGIC Insured, 5.00%, 1/01/23 ........................... 4,315,000 4,632,455 Hoboken Parking Authority Parking Revenue, ABMAC Insured, Pre-Refunded, 5.30%, 5/01/27 ..................................................................................... 3,600,000 4,067,964 Hudson County Improvement Authority Solid Waste Systems Revenue, Koppers Site Project, Series A, 6.125%, 1/01/29 ................................................................... 6,510,000 6,565,075
Quarterly Statements of Investments | 139 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN NEW JERSEY TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) NEW JERSEY (CONT.) Jackson Township School District GO, FGIC Insured, 5.00%, 4/15/25 ............................. $ 3,000,000 $ 3,195,120 Jersey City GO, FSA Insured, Pre-Refunded, 5.00%, 3/01/21 .................................................. 1,500,000 1,626,840 Series A, FSA Insured, 5.625%, 3/01/20 ..................................................... 1,000,000 1,106,120 Lafayette Yard Community Development Revenue, Hotel/Conference Center Project-Trenton Guaranteed, MBIA Insured, Pre-Refunded, 6.00%, 4/01/29 ............................................................................. 1,750,000 1,993,460 5.80%, 4/01/35 ............................................................................. 2,520,000 2,848,129 Middlesex County COP, MBIA Insured, 5.00%, 8/01/31 ............................................ 3,250,000 3,391,472 Middlesex County Improvement Authority Revenue, Administration Building Residential Project, FNMA Insured, 5.25%, 7/01/21 ............................................................................. 750,000 808,920 5.35%, 7/01/34 ............................................................................. 1,575,000 1,676,430 Middletown Township GO, Board of Education, MBIA Insured, Pre-Refunded, 5.85%, 8/01/24 .................................................................................... 4,295,000 4,563,008 8/01/25 .................................................................................... 5,000 5,312 Monroe Township Municipal Utilities Authority Middlesex County Revenue, Refunding, FGIC Insured, 5.00%, 2/01/26 ................................................................ 1,000,000 1,050,160 Mount Olive Township Board of Education GO, MBIA Insured, 5.00%, 7/15/29 ...................... 7,875,000 8,427,825 New Jersey EDA, PCR, Jersey Central Power and Light, 7.10%, 7/01/15 ........................... 550,000 557,557 New Jersey EDA Heating and Cooling Revenue, Trigen-Trenton Project, Series B, 6.20%, 12/01/07 .................................................................................... 2,660,000 2,668,113 New Jersey EDA Lease Revenue, International Center for Public Health Project, University of Medicine and Dentistry, AMBAC Insured, 6.00%, 6/01/32 ....................................... 5,000,000 5,609,600 New Jersey EDA Natural Gas Facilities Revenue, New Jersey Natural Gas Co. Project, Series A, AMBAC Insured, 6.25%, 8/01/24 ............................................................... 8,200,000 8,361,622 New Jersey EDA Revenue, Cigarette Tax, 5.50%, 6/15/24 .............................................................. 5,000,000 5,307,800 Hillcrest Health Services System Project, Refunding, AMBAC Insured, 5.375%, 1/01/16 ........ 2,500,000 2,676,300 Jewish Community Housing Corp. Metropolitan Project, 5.90%, 12/01/31 ....................... 5,110,000 5,517,880 Motor Vehicle Surcharge Revenue, Series A, MBIA Insured, 5.00%, 7/01/29 .................... 12,500,000 13,325,625 Motor Vehicle Surcharge Revenue, Series A, MBIA Insured, 5.00%, 7/01/34 .................... 10,000,000 10,575,100 Municipal Rehabilitation, Series A, AMBAC Insured, 5.00%, 4/01/28 .......................... 14,545,000 15,433,118 School Facilities Construction, Series A, AMBAC Insured, Pre-Refunded, 5.00%, 6/15/21 .................................................................................. 15,000,000 16,496,550 School Facilities Construction, Series C, MBIA Insured, 4.75%, 6/15/25 ..................... 16,500,000 17,149,275 School Facilities Construction, Series L, FSA Insured, 5.00%, 3/01/30 ...................... 12,000,000 12,810,000 Transportation Project Sub Lease, Series A, FSA Insured, Pre-Refunded, 5.25%, 5/01/17 .................................................................................. 5,000,000 5,406,350 Transportation Project Sub Lease, Series A, FSA Insured, Pre-Refunded, 5.00%, 5/01/18 .................................................................................. 2,000,000 2,144,240 New Jersey EDA School Revenue, Blair Academy, 1995 Project, Series A, 5.85%, 9/01/16 .......... 1,640,000 1,651,726 New Jersey EDA State Lease Revenue, Liberty State Park Lease Rental, Refunding, AMBAC Insured, 5.75%, 3/15/20 ............................................................... 4,605,000 4,795,002 New Jersey EDA Water Facilities Revenue, Hackensack Water Co. Project, Refunding, Series A, MBIA Insured, 5.80%, 3/01/24 ................................................................ 1,000,000 1,014,920 New Jersey Health Care Facilities Financing Authority Revenue, 5.75%, 7/01/28 ............................................................................. 11,000,000 11,662,200
140 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN NEW JERSEY TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) NEW JERSEY (CONT.) New Jersey Health Care Facilities Financing Authority Revenue, (cont.) Atlantic City Medical Center, Refunding, 5.75%, 7/01/25 .................................... $ 5,000,000 $ 5,365,650 Atlantic Health Systems, Series A, AMBAC Insured, 5.00%, 7/01/27 ........................... 7,500,000 7,748,025 Burdette Tomlin Memorial Hospital, 5.50%, 7/01/29 .......................................... 5,725,000 5,984,743 Cathedral Health Services, Refunding, MBIA Insured, 5.25%, 8/01/21 ......................... 5,000,000 5,290,400 East Orange General Hospital, Series B, 7.75%, 7/01/20 ..................................... 4,710,000 4,710,188 Englewood Hospital, MBIA Insured, 5.00%, 8/01/31 ........................................... 7,330,000 7,693,641 Franciscan St. Mary's Hospital, ETM, 5.875%, 7/01/12 ....................................... 3,550,000 3,836,840 Hackensack University Medical Center, 6.00%, 1/01/34 ....................................... 10,000,000 10,640,000 Holy Name Hospital, 6.00%, 7/01/25 ......................................................... 3,000,000 3,162,510 Holy Name Hospital, AMBAC Insured, 5.25%, 7/01/20 .......................................... 3,000,000 3,165,660 Jersey City Medical Center, AMBAC Insured, 5.00%, 8/01/31 .................................. 7,000,000 7,477,050 JFK Medical Center/Hartwyck, Refunding, MBIA Insured, 5.00%, 7/01/25 ....................... 7,855,000 8,151,919 Medical Center at Princeton Obligation Group, AMBAC Insured, 5.00%, 7/01/28 ................ 7,000,000 7,244,020 Meridian Health Systems Obligation Group, FSA Insured, 5.375%, 7/01/24 ..................... 6,500,000 6,995,105 Meridian Health Systems Obligation Group, FSA Insured, 5.25%, 7/01/29 ...................... 20,000,000 21,179,000 Pascack Valley Hospital Assn., 5.125%, 7/01/28 ............................................. 4,400,000 3,641,132 Robert Wood Johnson University Hospital, 5.75%, 7/01/25 .................................... 5,000,000 5,448,650 South Jersey Hospital, 5.875%, 7/01/21 ..................................................... 10,000,000 10,669,100 South Jersey Hospital, 6.00%, 7/01/32 ...................................................... 18,600,000 19,902,186 Southern Ocean County Hospital, FSA Insured, 5.00%, 7/01/27 ................................ 2,000,000 2,055,020 St. Joseph's Hospital and Medical Center, Refunding, Connie Lee Insured, 5.75%, 7/01/16 ................................................................................... 1,000,000 1,047,420 St. Joseph's Hospital and Medical Center, Refunding, Connie Lee Insured, 6.00%, 7/01/26 ................................................................................... 1,000,000 1,050,040 St. Peters University Hospital, Series A, 6.875%, 7/01/30 .................................. 1,500,000 1,672,275 New Jersey State Building Authority State Building Revenue, Refunding, 5.00%, 6/15/15 ......... 5,000,000 5,265,450 New Jersey State Educational Facilities Authority Revenue, Capital Improvement Funding Project, Series A, FSA Insured, 5.00%, 9/01/20 ................. 8,000,000 8,421,040 FGIC Insured, 5.50%, 7/01/30 ............................................................... 6,615,000 7,238,265 Kean University, Series D, FGIC Insured, 5.00%, 7/01/33 .................................... 10,000,000 10,571,000 Montclair State University, Series F, FGIC Insured, 5.00%, 7/01/31 ......................... 5,000,000 5,228,800 Princeton University, Refunding, Series A, 5.00%, 7/01/30 .................................. 5,000,000 5,368,300 Princeton University, Refunding, Series D, 5.00%, 7/01/29 .................................. 1,000,000 1,068,400 Ramapo College of New Jersey, Series D, AMBAC Insured, 5.00%, 7/01/25 ...................... 1,000,000 1,056,770 Ramapo College of New Jersey, Series D, AMBAC Insured, 5.00%, 7/01/31 ...................... 1,500,000 1,568,640 Ramapo College of New Jersey, Series E, FGIC Insured, 5.00%, 7/01/34 ....................... 2,000,000 2,125,880 Rowan College, Series E, AMBAC Insured, Pre-Refunded, 6.00%, 7/01/26 ....................... 9,810,000 10,238,108 Rowan University, Refunding, Series D, AMBAC Insured, 5.00%, 7/01/24 ....................... 1,855,000 1,993,216 Rowan University, Series C, FGIC Insured, 5.00%, 7/01/31 ................................... 2,000,000 2,104,520 Rowan University, Series K, FGIC Insured, 5.00%, 7/01/27 ................................... 1,000,000 1,057,290 Rowan University, Series K, FGIC Insured, 5.00%, 7/01/33 ................................... 1,000,000 1,051,010 Seton Hall University Project, Series G, AMBAC Insured, 5.00%, 7/01/26 ..................... 1,870,000 1,969,951 Stevens Institute of Technology, Series I, 5.00%, 7/01/18 .................................. 1,100,000 1,146,134 Stevens Institute of Technology, Series I, 5.00%, 7/01/28 .................................. 1,575,000 1,611,776 University of Medical Dentistry, Series C, AMBAC Insured, 5.125%, 12/01/29 ................. 2,700,000 2,817,045 New Jersey State Highway Authority Garden State Parkway General Revenue, ETM, 6.20%, 1/01/10 ..................................................................................... 5,000,000 5,538,100
Quarterly Statements of Investments | 141 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN NEW JERSEY TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) NEW JERSEY (CONT.) New Jersey State Housing and Mortgage Finance Agency MFHR, Series A1, FSA Insured, 6.35%, 11/01/31 .................................................... $ 2,000,000 $ 2,133,460 Series B, FSA Insured, 6.25%, 11/01/26 ..................................................... 1,480,000 1,578,361 Series D, FSA Insured, 5.50%, 5/01/22 ...................................................... 905,000 937,752 Series E1, FSA Insured, 5.70%, 5/01/20 ..................................................... 2,790,000 2,962,255 Series E1, FSA Insured, 5.75%, 5/01/25 ..................................................... 1,295,000 1,369,955 New Jersey State Housing and Mortgage Finance Agency Revenue, Home Buyer, Series CC, MBIA Insured, 5.875%, 10/01/31 .................................................. 1,630,000 1,664,165 Series U, MBIA Insured, 5.85%, 4/01/29 ..................................................... 4,275,000 4,409,791 New Jersey State Transportation Corp. COP, Federal Transportation Administration Grants, Series A, AMBAC Insured, Pre-Refunded, 6.125%, 9/15/15 ...................................... 2,000,000 2,235,700 New Jersey State Transportation Trust Fund Authority Revenue, Transportation System, Series B, MBIA Insured, Pre-Refunded, 5.00%, 12/15/21 ....................................... 10,000,000 11,028,700 New Jersey State Turnpike Authority Turnpike Revenue, Series A, AMBAC Insured, 5.00%, 1/01/30 .............................................................. 13,500,000 14,289,750 FGIC Insured, 5.00%, 1/01/27 ............................................................... 6,500,000 6,907,810 MBIA Insured, 5.60%, 1/01/22 ............................................................... 7,500,000 8,227,125 MBIA Insured, 5.50%, 1/01/25 ............................................................... 16,300,000 17,775,476 Newark Housing Authority Port Authority Revenue, Newark Marine Terminal, MBIA Insured, 5.00%, 1/01/26 ............................................................................. 3,245,000 3,473,708 5.50%, 1/01/27 ............................................................................. 3,240,000 3,622,255 5.50%, 1/01/28 ............................................................................. 2,000,000 2,223,620 5.00%, 1/01/34 ............................................................................. 29,155,000 30,669,311 North Brunswick Township Board of Education GO, Refunding, FGIC Insured, 5.00%, 2/01/15 ..................................................................................... 2,000,000 2,076,020 North Hudson Sewer Authority New Jersey Sewer Revenue, Series C, MBIA Insured, 5.00%, 8/01/22 .................................................................................... 1,000,000 1,057,990 8/01/31 .................................................................................... 1,000,000 1,046,290 North Plainfield Board of Education GO, FSA Insured, 4.875%, 8/15/25 .......................... 1,020,000 1,063,972 Ocean County Board of Education GO, Cape May, FGIC Insured, 5.00%, 4/01/21 .................................................................................... 2,155,000 2,279,688 4/01/22 .................................................................................... 2,142,000 2,263,666 Passaic County Improvement Authority Lease Revenue, Preakness Healthcare Center Project, AMBAC Insured, 5.00%, 5/01/35 ............................................................... 3,045,000 3,217,956 Passaic County Improvement Authority Parking Facilities Revenue, Paterson Parking Deck Project, Series A, FSA Insured, 5.00%, 4/15/35 .............................................. 1,375,000 1,449,401 Passaic Valley Sewer Commissioners GO, Sewer System, Refunding, Series E, AMBAC Insured, 5.75%, 12/01/22 ............................................................................. 8,925,000 9,940,130 Rutgers State University COP, AMBAC Insured, 5.00%, 1/01/34 ................................... 1,000,000 1,057,090 South Brunswick Township Board of Education GO, Refunding, Series AA, FGIC Insured, 5.50%, 8/01/24 .............................................................................. 1,720,000 1,780,750 South Jersey Transportation Authority Transportation Systems Revenue, AMBAC Insured, 5.00%, 11/01/29 ............................................................................. 12,000,000 12,531,720 Tobacco Settlement Financing Corp. Revenue, Asset Backed, Refunding, 6.00%, 6/01/37 ........... 13,000,000 13,184,990 Union County Utilities Authority Solid Waste Revenue, sub. lease, Ogden Martin, Series A, AMBAC Insured, 5.35%, 6/01/23 ............................................................... 2,705,000 2,840,493 University of Medicine and Dentistry COP, AMBAC Insured, 5.00%, 4/15/32 .............................................................. 4,625,000 4,870,449
142 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN NEW JERSEY TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) NEW JERSEY (CONT.) University of Medicine and Dentistry COP, (cont.) MBIA Insured, 5.00%, 6/15/29 ............................................................... $ 4,090,000 $ 4,330,656 MBIA Insured, 5.00%, 6/15/36 ............................................................... 9,000,000 9,481,140 Series A, MBIA Insured, 5.00%, 9/01/22 ..................................................... 1,700,000 1,824,729 University of Medicine and Dentistry Revenue, Series A, AMBAC Insured, 5.00%, 12/01/24 ................................................................................... 2,500,000 2,672,200 12/01/31 ................................................................................... 29,395,000 30,970,866 Washington Township Board of Education GO, Mercer County, FGIC Insured, Pre-Refunded, 5.00%, 1/01/28 .............................................................................. 4,497,000 4,956,773 West Orange County Board of Education COP, MBIA Insured, Pre-Refunded, 5.625%, 10/01/29 .................................................................................... 2,000,000 2,219,600 Woodbridge Township GO, FGIC Insured, 5.00%, 7/15/24 .......................................... 1,220,000 1,295,762 -------------- 736,552,406 -------------- NEW YORK 5.1% Port Authority of New York and New Jersey Revenue, 120th Series, MBIA Insured, 5.50%, 10/15/35 ................................................ 5,000,000 5,239,650 121st Series, MBIA Insured, 5.375%, 10/15/35 ............................................... 3,000,000 3,174,600 Consolidated, 109th Series, FSA Insured, 5.375%, 7/15/27 ................................... 2,500,000 2,612,300 Consolidated, 125th Series, FSA Insured, 5.00%, 4/15/32 .................................... 23,950,000 25,335,029 Consolidated, Refunding, 135th Series, XLCA Insured, 5.00%, 9/15/29 ........................ 3,900,000 4,162,938 Port Authority of New York and New Jersey Special Obligation Revenue, 4th Installment, Special Project, 6.75%, 10/01/11 .......................................... 2,500,000 2,645,375 John F. Kennedy International Air Terminal, MBIA Insured, 5.75%, 12/01/22 .................. 8,000,000 8,609,120 -------------- 51,779,012 -------------- PENNSYLVANIA 2.0% Delaware River Port Authority Pennsylvania and New Jersey Delaware River Bridges Revenue, FSA Insured, 5.75%, 1/01/22 .................................................................................... 8,500,000 9,419,785 1/01/26 .................................................................................... 10,000,000 11,073,100 -------------- 20,492,885 -------------- U.S. TERRITORIES 16.0% Puerto Rico Commonwealth GO, Public Improvement, FSA Insured, 5.125%, 7/01/30 ............................................................... 8,350,000 8,931,160 FSA Insured, Pre-Refunded, 5.125%, 7/01/30 ................................................. 13,655,000 15,159,781 Series A, 5.00%, 7/01/29 ................................................................... 10,000,000 10,482,900 Series A, FGIC Insured, Pre-Refunded, 5.00%, 7/01/32 ....................................... 3,000,000 3,329,490 Series A, Pre-Refunded, 5.00%, 7/01/27 ..................................................... 11,555,000 12,824,086 Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Series B, Pre-Refunded, 6.00%, 7/01/39 ..................................................... 10,000,000 11,463,500 Series D, 5.375%, 7/01/36 .................................................................. 5,000,000 5,391,250 Series D, 5.25%, 7/01/38 ................................................................... 5,000,000 5,312,100 Puerto Rico Commonwealth Infrastructure Financing Authority Special Obligation Bonds, Series A, ETM, 5.50%, 10/01/32 .............................................................. 1,000,000 1,094,490 Puerto Rico Commonwealth Infrastructure Financing Authority Special Tax Revenue, Series A, 7.50%, 7/01/09 ............................................................................. 20,000 20,081 AMBAC Insured, 5.00%, 7/01/28 .............................................................. 15,000,000 15,498,900
Quarterly Statements of Investments | 143 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN NEW JERSEY TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) U.S. TERRITORIES (CONT.) Puerto Rico Electric Power Authority Power Revenue, Series II, 5.25%, 7/01/31 .................................................................. $18,000,000 $ 19,314,720 Series X, Pre-Refunded, 6.125%, 7/01/21 .................................................... 5,000,000 5,113,850 Puerto Rico HFC Revenue, MF Mortgage, Portfolio A-I, 7.50%, 4/01/22 ........................... 2,005,000 2,011,336 Puerto Rico Industrial Tourist Educational Medical and Environmental Control Facilities Revenue, University Plaza Project, Series A, MBIA Insured, 5.00%, 7/01/33 ................... 1,000,000 1,040,850 Puerto Rico PBA Revenue, Guaranteed, Government Facilities, Series D, 5.375%, 7/01/33 ............................................................................ 6,830,000 7,368,750 Pre-Refunded, 5.375%, 7/01/33 .............................................................. 18,170,000 20,409,997 Puerto Rico Public Finance Corp. Revenue, Commonwealth Appropriation, Series A, MBIA Insured, Pre-Refunded, 5.00%, 8/01/29 .................................................. 5,000,000 5,523,000 Virgin Islands PFAR, Gross Receipts Taxes Loan Note, Radian Insured, 5.00%, 10/01/33 ............................ 5,000,000 5,250,650 senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/15 ......................... 2,500,000 2,676,300 senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/18 ......................... 3,045,000 3,240,946 senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/22 ......................... 2,000,000 2,120,940 -------------- 163,579,077 -------------- TOTAL BONDS (COST $924,351,761) ............................................................... 996,732,910 -------------- ZERO COUPON BONDS 0.5% NEW JERSEY 0.5% Middlesex County COP, MBIA Insured, 6/15/24 ................................................... 1,000,000 430,300 New Jersey State Turnpike Authority Turnpike Revenue, Growth and Income Securities, Series B, AMBAC Insured, 1/01/35 ............................................................ 7,500,000 4,863,675 -------------- TOTAL ZERO COUPON BONDS (COST $4,904,326) ..................................................... 5,293,975 -------------- TOTAL LONG TERM INVESTMENTS (COST $929,256,087) ............................................... 1,002,026,885 -------------- SHORT TERM INVESTMENTS 0.3% BONDS 0.3% NEW JERSEY 0.3% (a)New Jersey EDA Revenue, Refunding, First Mortgage Franciscan, Weekly VRDN and Put, 2.95%, 10/01/12 ............................................................................. 455,000 455,000 (a)New Jersey Sports and Exposition Authority State Contract Revenue, Refunding, Series B-2, MBIA Insured, Weekly VRDN and Put, 2.90%, 3/01/21 ........................................... 1,240,000 1,240,000 (a)New Jersey Sports and Exposition Revenue, Series C, MBIA Insured, Weekly VRDN and Put, 2.90%, 9/01/24 .............................................................................. 1,050,000 1,050,000 -------------- TOTAL SHORT TERM INVESTMENTS (COST $2,745,000) ................................................ 2,745,000 -------------- TOTAL INVESTMENTS (COST $932,001,087) 98.3% ................................................... 1,004,771,885 OTHER ASSETS, LESS LIABILITIES 1.7% ........................................................... 17,487,106 -------------- NET ASSETS 100.0% ............................................................................. $1,022,258,991 ==============
See Selected Portfolio Abbreviations on page 180. (a) Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. 144 | See Notes to Statements of Investments. | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN NORTH CAROLINA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 99.2% BONDS 99.2% NORTH CAROLINA 81.0% Appalachian State University Revenue, Refunding, MBIA Insured, 5.00%, 7/15/30 ...................................................... $ 2,000,000 $ 2,132,380 Teachers College Utility System, Refunding, MBIA Insured, 5.00%, 5/15/24 ..................... 3,000,000 3,142,890 Asheville Water System Revenue, FGIC Insured, 5.70%, 8/01/25 ................................................................. 4,000,000 4,202,280 FSA Insured, 5.00%, 8/01/25 .................................................................. 1,000,000 1,059,680 Broad River Water Authority Water System Revenue, MBIA Insured, 5.375%, 6/01/26 ................. 1,000,000 1,090,760 Brunswick County Enterprise System Revenue, Series A, FSA Insured, 5.00%, 4/01/27 ...................................................................................... 1,500,000 1,601,355 4/01/28 ...................................................................................... 1,750,000 1,860,250 Buncombe County Metropolitan Sewer District Sewer System Revenue, FSA Insured, 5.00%, 7/01/29 .................................................................. 5,000,000 5,413,250 MBIA Insured, 5.00%, 7/01/26 ................................................................. 1,000,000 1,097,520 Centennial Authority Hotel Tax Revenue, Arena Project, FSA Insured, 5.125%, 9/01/19 ............. 5,115,000 5,421,644 Charlotte Airport Revenue, Series A, MBIA Insured, 5.00%, 7/01/29 ....................................................... 5,000,000 5,291,400 Series A, MBIA Insured, 5.00%, 7/01/34 ....................................................... 9,130,000 9,605,856 Series B, MBIA Insured, 6.00%, 7/01/24 ....................................................... 4,000,000 4,453,520 Series B, MBIA Insured, 6.00%, 7/01/28 ....................................................... 6,300,000 6,991,299 Charlotte COP, Convention Facility Project, Pre-Refunded, 5.625%, 12/01/25 .................................. 7,230,000 8,198,965 Governmental Facilities Projects, Series G, 5.00%, 6/01/28 ................................... 3,000,000 3,161,550 Charlotte GO, Series C, 5.00%, 7/01/27 .......................................................... 2,010,000 2,135,323 Charlotte Storm Water Fee Revenue, Refunding, 5.00%, 6/01/25 .................................... 1,000,000 1,065,730 Charlotte Water and Sewer GO, Pre-Refunded, 5.00%, 2/01/21 ...................................... 4,000,000 4,287,600 Charlotte Water and Sewer System Revenue, 5.125%, 6/01/26 .............................................................................. 6,000,000 6,407,220 Pre-Refunded, 5.25%, 6/01/24 ................................................................. 3,000,000 3,281,310 Pre-Refunded, 5.25%, 6/01/25 ................................................................. 3,950,000 4,379,839 Charlotte-Mecklenberg Hospital Authority Health Care System Revenue, 5.90%, 1/15/16 ............................................................................... 3,465,000 3,588,631 Carolinas Healthcare System, Refunding, Series A, 5.00%, 1/15/31 ............................. 5,000,000 5,161,650 Carolinas Healthcare System, Series A, 5.125%, 1/15/22 ....................................... 8,000,000 8,256,400 Columbus County Industrial Facilities and PCFA, Solid Water Disposal Revenue, International Paper Co. Project, Refunding, Series A, 5.80%, 12/01/16 ....................................... 1,450,000 1,529,474 Concord COP, Series B, MBIA Insured, 5.75%, 6/01/16 ............................................................................... 1,475,000 1,546,375 6.125%, 6/01/21 .............................................................................. 2,180,000 2,293,447 Cumberland County COP, Civic Center Project, Refunding, AMBAC Insured, 5.00%, 12/01/18 ...................................................................................... 3,000,000 3,164,250 Cumberland County Finance Corp. Installment Payment Revenue, Detention Center and Mental Health, FSA Insured, Pre-Refunded, 5.625%, 6/01/24 ............................................ 5,000,000 5,665,350 Cumberland County Hospital Facilities Revenue, Cumberland County Hospital Systems Inc., Refunding, 5.25%, 10/01/29 .................................................................... 5,250,000 5,427,397 Dare County COP, AMBAC Insured, 5.125%, 6/01/21 .............................................................................. 650,000 708,357 5.00%, 6/01/23 ............................................................................... 3,000,000 3,216,690 5.00%, 6/01/29 ............................................................................... 5,295,000 5,613,653
Quarterly Statements of Investments | 145 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN NORTH CAROLINA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) NORTH CAROLINA (CONT.) Durham County Enterprise System Revenue, MBIA Insured, 5.00%, 6/01/23 ........................... $ 1,670,000 $ 1,797,504 Durham County GO, Public Improvement, 5.00%, 6/01/22 ............................................ 2,000,000 2,157,660 Franklin County COP, AMBAC Insured, 5.00%, 6/01/25 .............................................. 1,250,000 1,327,813 Gastonia Combined Utilities System Revenue, FSA Insured, 5.00%, 5/01/25 .................................................................. 1,000,000 1,057,540 MBIA Insured, 5.625%, 5/01/19 ................................................................ 1,000,000 1,108,300 Greensboro Enterprise Systems Revenue, Series A, 5.125%, 6/01/21 ...................................................................................... 390,000 419,496 6/01/22 ...................................................................................... 350,000 375,305 Greensboro HDC, Mortgage Revenue, Refunding, Series A, MBIA Insured, 6.70%, 1/01/24 ............. 1,320,000 1,322,798 Halifax County Industrial Facilities and PCFA Revenue, Champion International Corp. Project, 5.45%, 11/01/33 .............................................................................. 4,000,000 4,065,280 Refunding, 6.45%, 11/01/29 ................................................................... 3,900,000 4,187,742 Harnett County COP, FSA Insured, 5.125%, 12/01/23 ............................................... 1,000,000 1,089,830 Haywood County Industrial Facilities and PCFA, Environmental Improvement Revenue, Champion International Project, 6.25%, 9/01/25 ................................................ 2,000,000 2,047,680 Henderson County COP, Henderson County School Project, AMBAC Insured, 5.00%, 3/01/21 ............ 1,000,000 1,070,470 High Point Combined Enterprise System Revenue, FGIC Insured, 5.00%, 11/01/31 .................... 5,000,000 5,324,150 Martin County Industrial Facilities and PCFA Revenue, Solid Waste, Weyerhaeuser Co. Project, 6.00%, 11/01/25 ............................................................................... 5,400,000 5,553,522 Mecklenburg County GO, Public Improvement, Series B, 4.70%, 2/01/20 ............................. 3,000,000 3,144,840 New Hanover County COP, New Hanover County Projects, AMBAC Insured, 5.00%, 12/01/22 ...................................................................................... 5,000,000 5,378,600 North Carolina Capital Facilities Finance Agency Educational Facilities Revenue, Johnson & Wales University Project, Series A, XLCA Insured, 5.00%, 4/01/33 ................... 3,000,000 3,140,190 Meredith College, AMBAC Insured, 4.875%, 6/01/24 ............................................. 1,000,000 1,044,850 North Carolina Eastern Municipal Power Agency Power System Revenue, Refunding, Series A, 6.50%, 1/01/18 .......................................................... 3,000,000 3,606,690 Refunding, Series A, 5.75%, 1/01/26 .......................................................... 10,000,000 10,637,200 Refunding, Series D, 6.75%, 1/01/26 .......................................................... 5,000,000 5,615,950 Series B, MBIA Insured, 5.875%, 1/01/21 ...................................................... 5,000,000 5,310,350 North Carolina Educational Facilities Finance Agency Revenue, Duke University Project, Series A, 5.25%, 7/01/42 ...................................................................... 10,000,000 10,604,000 North Carolina HFAR, MF, Mortgage Loan Resolution, Refunding, Series H, 6.05%, 7/01/28 ............................ 2,230,000 2,289,496 MF, Refunding, Series A, AMBAC Insured, 5.90%, 7/01/20 ....................................... 2,780,000 2,838,352 MF, Refunding, Series J, 5.45%, 7/01/17 ...................................................... 2,175,000 2,260,282 Refunding, Series F, 6.70%, 1/01/27 .......................................................... 2,210,000 2,249,802 SF, Refunding, Series DD, 6.20%, 9/01/27 ..................................................... 1,170,000 1,189,937 SF, Series JJ, 6.45%, 9/01/27 ................................................................ 1,850,000 1,908,294 SFR, Series AA, 6.25%, 3/01/17 ............................................................... 365,000 372,866 SFR, Series RR, 5.85%, 9/01/28 ............................................................... 2,475,000 2,533,088 SFR, Series X, 6.65%, 9/01/19 ................................................................ 65,000 65,484 North Carolina Medical Care Commission Health Care Facilities Revenue, Novant Health Project, Refunding, Series A, MBIA Insured, 5.00%, 10/01/18 .................... 1,000,000 1,051,080 Novant Health Project, Refunding, Series A, MBIA Insured, 5.00%, 10/01/24 .................... 5,500,000 5,722,915
146 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN NORTH CAROLINA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) NORTH CAROLINA (CONT.) North Carolina Medical Care Commission Health Care Facilities Revenue, (cont.) (a)Refunding, FGIC Insured, 5.00%, 1/01/33 ................................................... $ 5,000,000 $ 5,284,300 Scotland Memorial Hospital Project, Radian Insured, 5.50%, 10/01/19 ....................... 630,000 674,472 Scotland Memorial Hospital Project, Radian Insured, 5.50%, 10/01/29 ....................... 1,220,000 1,297,019 Wakemed Project, AMBAC Insured, 5.00%, 10/01/32 ........................................... 4,205,000 4,393,468 North Carolina Medical Care Commission Health System Revenue, Catholic Health East Project, Series C, AMBAC Insured, 5.00%, 11/15/18 ...................................................... 2,500,000 2,639,675 North Carolina Medical Care Commission Hospital Revenue, Annie Penn Memorial Hospital Project, Pre-Refunded, 5.375%, 1/01/22 .......................... 1,920,000 2,113,824 Annie Penn Memorial Hospital Project, Refunding, ETM, 5.25%, 1/01/12 ......................... 1,940,000 2,076,886 Halifax Regional Medical Center Project, 5.00%, 8/15/24 ...................................... 1,800,000 1,555,704 Mission St. Joseph's Health System Project, MBIA Insured, 5.125%, 10/01/28 ................... 5,000,000 5,202,900 Northeast Medical Center, AMBAC Insured, 5.50%, 11/01/30 ..................................... 1,580,000 1,722,279 Rex Healthcare Project, AMBAC Insured, 5.00%, 6/01/17 ........................................ 2,780,000 2,917,749 Southeastern Regional Medical Center, 6.25%, 6/01/29 ......................................... 4,000,000 4,286,840 Southeastern Regional Medical Center, 5.375%, 6/01/32 ........................................ 3,500,000 3,667,790 Transylvania Community Hospital Inc. Project, Refunding, 5.75%, 10/01/19 ..................... 1,090,000 1,094,033 Wake County Hospital System Project, MBIA Insured, 5.375%, 10/01/26 .......................... 10,825,000 11,521,914 Wilson Memorial Hospital Project, Refunding, AMBAC Insured, 5.625%, 11/01/18 ................. 5,000,000 5,271,900 North Carolina Medical Care Commission Revenue, Rowan Regional Medical Center, FSA Insured, 5.00%, 9/01/33 ................................................................... 5,900,000 6,202,729 North Carolina Medical Care Community Revenue, FHA Insured Betsy Johnson Project, FSA Insured, 5.125%, 10/01/32 ................................................................. 4,500,000 4,796,235 (a)North Carolina Medical Care Commission Revenue, Morehead Memorial Hospital, FSA Insured, 5.00%, 11/01/26 ..................................................................................... 4,000,000 4,260,440 11/01/30 ..................................................................................... 2,825,000 2,985,460 North Carolina Municipal Power Agency No. 1 Catawba Electric Revenue, Series A, MBIA Insured, 5.25%, 1/01/19 ............................................................................... 5,000,000 5,449,300 5.00%, 1/01/20 ............................................................................... 2,000,000 2,093,140 North Carolina State COP, Western Carolina University Housing Project, AMBAC Insured, 5.00%, 6/01/33 ....................................................................................... 1,500,000 1,581,810 North Carolina State Education Assistance Authority Revenue, Guaranteed, Student Loan, sub. lien, Series A, 6.05%, 7/01/10 ..................................................................... 3,310,000 3,380,702 Series A, 6.30%, 7/01/15 ..................................................................... 1,500,000 1,532,025 Series C, 6.35%, 7/01/16 ..................................................................... 4,500,000 4,684,365 North Carolina University Revenue, 5.00%, 12/01/28 .............................................. 1,000,000 1,064,010 Pasquotank County COP, MBIA Insured, 5.00%, 6/01/25 ............................................. 1,400,000 1,484,252 Piedmont Triad Airport Authority Airport Revenue, Refunding, Series A, FSA Insured, 6.00%, 7/01/24 ....................................................................................... 5,745,000 6,398,666 Pitt County COP, MBIA Insured, Pre-Refunded, 5.85%, 4/01/17 ................................................... 5,055,000 5,420,881 School Facilities Project, Series A, FSA Insured, 5.25%, 4/01/25 ............................. 1,670,000 1,804,318 School Facilities Project, Series B, AMBAC Insured, 5.00%, 4/01/29 ........................... 2,500,000 2,651,800 School Facilities Project, Series B, FSA Insured, 5.50%, 4/01/25 ............................. 1,000,000 1,093,270
Quarterly Statements of Investments | 147 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN NORTH CAROLINA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) NORTH CAROLINA (CONT.) Raleigh Combined Enterprise System Revenue, 5.00%, 3/01/31 ...................................... $10,360,000 $ 10,991,856 Raleigh COP, Downtown Improvement Projects, Series A, 5.00%, 2/01/29 ............................ 6,070,000 6,466,917 Raleigh Durham Airport Authority Airport Revenue, Series A, AMBAC Insured, 5.00%, 5/01/30 ................................................................ 5,000,000 5,300,550 FGIC Insured, 5.00%, 11/01/25 ................................................................ 6,480,000 6,831,670 FGIC Insured, 5.00%, 11/01/31 ................................................................ 8,000,000 8,370,400 Randolph County COP, FSA Insured, Pre-Refunded, 5.75%, 6/01/22 .................................. 5,500,000 6,118,585 Robeson County Industrial Facilities and PCFA Revenue, Campbell Soup Co. Project, Refunding, 6.40%, 12/01/06 ............................................................................... 1,750,000 1,840,528 University of Greenboro Revenue, Housing and Dining System, Series G, MBIA Insured, Pre-Refunded, 6.00%, 4/01/26 .................................................................. 2,040,000 2,323,805 University of North Carolina Ashville Revenue, Refunding, Series A, AMBAC Insured, 5.00%, 6/01/27 ....................................................................................... 1,200,000 1,268,088 University of North Carolina Greensboro Revenue, Series A, FSA Insured, 5.00%, 4/01/26 .......... 4,940,000 5,249,392 University of North Carolina Revenue, Series A, 5.00%, 12/01/25 ................................. 4,000,000 4,226,600 University of North Carolina System Pool Revenue, AMBAC Insured, 5.00%, 4/01/29 ................................................................ 2,500,000 2,646,100 Series A, AMBAC Insured, 5.00%, 4/01/27 ...................................................... 2,100,000 2,230,767 Wake County Industrial Facilities and PCFA Revenue, Carolina Power and Light Company Project, Refunding, 5.375%, 2/01/17 ........................................................... 8,000,000 8,712,880 Wilkes County COP, Public Improvements Project, FSA Insured, 5.375%, 12/01/20 ................... 1,000,000 1,099,140 Wilmington COP, AMBAC Insured, 5.00%, 9/01/29 ................................................... 1,000,000 1,065,440 Winston-Salem Water and Sewer System Revenue, Series B, Pre-Refunded, 5.70%, 6/01/17 ....................................................... 2,250,000 2,295,000 Pre-Refunded, 5.125%, 6/01/20 ................................................................ 2,500,000 2,785,625 ------------ 428,750,150 ------------ U. S. TERRITORIES 18.2% Children's Trust Fund Puerto Rico Tobacco Settlement Revenue, Asset Backed Bonds, Refunding, 5.50%, 5/15/39 ..................................................................... 7,000,000 7,060,060 Puerto Rico Commonwealth GO, Public Improvement, FSA Insured, Pre-Refunding, 5.125%, 7/01/30 .................................................. 4,805,000 5,334,511 FSA insured, Refunding, 5.125%, 7/01/30 ...................................................... 3,445,000 3,684,772 Series A, 5.375%, 7/01/28 .................................................................... 4,925,000 5,292,504 Series A, 5.125%, 7/01/31 .................................................................... 3,265,000 3,411,174 Series A, Pre-Refunded, 5.00%, 7/01/27 ....................................................... 5,000,000 5,549,150 Series A, Pre-Refunded, 5.375%, 7/01/28 ...................................................... 2,405,000 2,703,076 Series A, Pre-Refunded, 5.125%, 7/01/31 ...................................................... 1,000,000 1,110,200 Puerto Rico Commonwealth Highway and Transportation Authority Revenue, Refunding, Series H, 5.00%, 7/01/35 ...................................................................... 4,280,000 4,470,589 Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Refunding, Series D, FSA Insured, 5.00%, 7/01/32 ............................................. 5,000,000 5,277,000 Series A, MBIA Insured, 5.00%, 7/01/38 ....................................................... 2,000,000 2,072,660 Series D, 5.375%, 7/01/36 .................................................................... 5,000,000 5,391,250 Series D, 5.25%, 7/01/38 ..................................................................... 3,000,000 3,187,260 Puerto Rico Commonwealth Infrastructure Financing Authority Special Revenue, Series A, 7.50%, 7/01/09 ............................................................................... 5,000 5,020 AMBAC Insured, 5.00%, 7/01/28 ................................................................ 10,000,000 10,332,600
148 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN NORTH CAROLINA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) U. S. TERRITORIES (CONT.) Puerto Rico Electric Power Authority Power Revenue, Series II, 5.25%, 7/01/31 .................................................................... $ 6,000,000 $ 6,438,240 Series RR, XLCA Insured, 5.00%, 7/01/30 ...................................................... 1,000,000 1,072,800 Series X, Pre-Refunded, 6.125%, 7/01/21 ...................................................... 4,000,000 4,091,080 Puerto Rico HFC Revenue, MFM, Portfolio A-I, 7.50%, 4/01/22 ..................................... 145,000 145,458 Puerto Rico PBA Revenue, Guaranteed, Government Facilities, Series D, 5.375%, 7/01/33 .................................................................... 1,790,000 1,931,195 Series D, Pre-Refunded, 5.375%, 7/01/33 ...................................................... 5,210,000 5,852,289 Series I, 5.00%, 7/01/36 ..................................................................... 2,405,000 2,522,965 Puerto Rico Public Finance Corp. Revenue, Commonwealth Appropriation, Series E, Pre-Refunded, 5.70%, 8/01/25 ................................................................... 5,000,000 5,578,350 Virgin Islands PFAR, senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/18 .............................................................................. 2,000,000 2,128,700 5.625%, 10/01/25 ............................................................................. 1,575,000 1,669,736 ------------ 96,312,639 ------------ TOTAL LONG TERM INVESTMENTS (COST $490,070,608) ................................................. 525,062,789 ------------ SHORT TERM INVESTMENTS 1.5% BONDS 1.5% NORTH CAROLINA 1.5% (b)Charlotte-Mecklenberg Hospital Authority Health Care System Revenue, Series B, Weekly VRDN and Put, 2.94%, 1/15/26 .................................................................. 1,100,000 1,100,000 (b)North Carolina Medical Care Commission Hospital Revenue, Lexington Memorial Hospital Project, Refunding, Daily VRDN and Put, 2.93%, 4/01/10 ........................................ 500,000 500,000 (b)North Carolina State GO, Series G, Weekly VRDN and Put, 2.90%, 5/01/21 .......................... 6,300,000 6,300,000 ------------ TOTAL SHORT TERM INVESTMENTS (COST $7,900,000) .................................................. 7,900,000 ------------ TOTAL INVESTMENTS (COST $497,970,608) 100.7% .................................................... 532,962,789 OTHER ASSETS, LESS LIABILITIES (0.7)% ........................................................... (3,778,661) ------------ NET ASSETS 100.0% ............................................................................... $529,184,128 ============
See Selected Portfolio Abbreviations on page 180. (a) Security purchased on a when-issued or delayed delivery basis. (b) Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. Quarterly Statements of Investments | See Notes to Statements of Investments. | 149 This page intentionally left blank. 150 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN OHIO INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 100.3% BONDS 99.6% OHIO 96.7% Akron Bath Copley Joint Township Hospital District Revenue, Hospital Improvement Children's Hospital Center, FSA Insured, 5.00%, 11/15/22 .................................... $ 5,000,000 $ 5,315,950 Akron GO, 7.50%, 9/01/05 ............................................................................. 500,000 505,515 Improvement, FGIC Insured, 5.00%, 12/01/20 ................................................. 2,150,000 2,321,226 Improvement, FGIC Insured, 5.00%, 12/01/21 ................................................. 2,255,000 2,427,823 Improvement, FGIC Insured, 5.00%, 12/01/22 ................................................. 1,185,000 1,273,164 Akron Income Tax Revenue, Community Learning Centers, Series A, FGIC Insured, 5.00%, 12/01/22 ................................................................................... 2,460,000 2,643,024 12/01/24 ................................................................................... 3,200,000 3,423,776 12/01/33 ................................................................................... 8,005,000 8,446,876 Akron Sewer System Revenue, Refunding, MBIA Insured, 5.55%, 12/01/16 .......................... 3,660,000 3,833,704 Anthony Wayne Local School District GO, Refunding, FSA Insured, 5.00%, 12/01/24 .................................................... 3,200,000 3,401,184 School Facilities Construction and Improvement, FSA Insured, 5.65%, 12/01/21 ............... 2,490,000 2,776,051 School Facilities Construction and Improvement, FSA Insured, 5.70%, 12/01/25 ............... 2,335,000 2,623,980 School Facilities Construction and Improvement, FSA Insured, 5.125%, 12/01/30 .............. 2,535,000 2,675,921 Archbold Area Local School District GO, AMBAC Insured, Pre-Refunded, 6.00%, 12/01/21 .................................................................................... 2,000,000 2,130,800 Athens City School District GO, School Facilities Construction and Improvement, FSA Insured, 6.00%, 12/01/24 ............................................................................. 2,345,000 2,682,914 Aurora City School District COP, MBIA Insured, Pre-Refunded, 6.10%, 12/01/19 ............................................................................ 1,825,000 2,072,233 6.15%, 12/01/24 ............................................................................ 1,670,000 1,899,725 Aurora City School District GO, FGIC Insured, Pre-Refunded, 5.80%, 12/01/16 ................... 1,075,000 1,113,291 Austintown Local School District GO, School Improvement, FSA Insured, 5.125%, 12/01/30 .................................................................................... 7,715,000 8,306,586 Avon Lake City School District GO, FGIC Insured, 5.50%, 12/01/26 .............................. 4,000,000 4,393,200 Avon Lake Water System Revenue, Series A, AMBAC Insured, 5.75%, 10/01/26 ...................... 2,020,000 2,280,923 Avon Local School District GO, AMBAC Insured, Pre-Refunded, 6.00%, 12/01/20 ............................................... 2,500,000 2,639,525 School Improvement, MBIA Insured, 5.25%, 12/01/23 .......................................... 1,000,000 1,098,330 School Improvement, MBIA Insured, 5.25%, 12/01/29 .......................................... 2,295,000 2,487,849 Beavercreek Local School District GO, FGIC Insured, 5.70%, 12/01/20 ........................... 8,125,000 8,528,325 Bluffton Exempted Village School District GO, Improvement, AMBAC Insured, 5.50%, 12/01/28 .................................................................................... 1,190,000 1,441,780 Bowling Green MFHR, Village Apartments, Refunding, Series A, GNMA Secured, 5.40%, 9/20/36 ..................................................................................... 2,940,000 3,037,931 Brookville Local School District GO, FSA Insured, 5.25%, 12/01/22 ............................................................................ 1,075,000 1,182,339 5.00%, 12/01/31 ............................................................................ 3,000,000 3,169,980 Buckeye Local School District GO, Construction and Improvement Bonds, FGIC Insured, 5.50%, 12/01/25 ............................................................................. 750,000 824,385 Butler County GO, AMBAC Insured, Pre-Refunded, 5.75%, 12/01/16 ............................................... 1,000,000 1,051,420 Judgment Bonds, FSA Insured, 4.75%, 12/01/26 ............................................... 4,000,000 4,158,720
Quarterly Statements of Investments | 151 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN OHIO INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) OHIO (CONT.) (a)Canal Winchester Local School District GO, MBIA Insured, 5.00%, 12/01/26 ................................................................................... $ 3,420,000 $ 3,658,716 12/01/27 ................................................................................... 3,590,000 3,837,566 Central Local School District GO, Classroom Facilities, FSA Insured, 5.75%, 12/01/22 .......... 1,555,000 1,752,998 Cincinnati City School District GO, Classroom Facilities Construction and Improvement, FSA Insured, 5.00%, 12/01/27 ............ 2,500,000 2,658,175 FSA Insured, 5.00%, 12/01/22 ............................................................... 9,510,000 10,145,934 Cincinnati Technical College Revenue, AMBAC Insured, 5.25%, 10/01/23 ............................................................................ 2,510,000 2,752,566 5.00%, 10/01/28 ............................................................................ 2,715,000 2,877,900 Circleville GO, Capital Facilities Improvement, AMBAC Insured, 5.625%, 12/01/20 ............... 2,035,000 2,259,277 Cleveland Municipal School District GO, FSA Insured, 5.00%, 12/01/27 .......................... 4,000,000 4,265,440 Cleveland State University General Receipt Revenue, FGIC Insured, 5.25%, 6/01/24 .............. 1,000,000 1,093,650 Cleveland Waterworks Revenue, Refunding and Improvement, Series I, FSA Insured, 5.00%, 1/01/28 ........................... 6,715,000 7,003,812 Series H, MBIA Insured, Pre-Refunded, 5.75%, 1/01/26 ....................................... 1,000,000 1,036,860 Series I, FSA Insured, Pre-Refunded, 5.00%, 1/01/28 ........................................ 4,785,000 5,077,172 Series K, FGIC Insured, Pre-Refunded, 5.00%, 1/01/22 ....................................... 2,075,000 2,287,148 Series K, FGIC Insured, Pre-Refunded, 5.00%, 1/01/23 ....................................... 4,285,000 4,723,098 Series K, FGIC Insured, Pre-Refunded, 5.00%, 1/01/25 ....................................... 8,150,000 8,983,256 Cleveland-Cuyahoga County Port Authority Revenue, Student Housing, Euclid Avenue, Fenn Project, AMBAC Insured, 5.00%, 8/01/25 ................................................. 2,440,000 2,610,385 Clyde-Green Springs Exempt Village School District GO, School Facilities Construction, Refunding and Improvement, MBIA Insured, 5.125%, 12/01/32 ................................... 1,000,000 1,068,460 Columbus City School District GO, Linden Elementary Construction, FSA Insured, 5.00%, 12/01/28 .................................................................................... 900,000 943,677 Columbus Municipal Airport Authority Revenue, Airport Improvement, Port Columbus International, Series B, AMBAC Insured, 5.00%, 1/01/18 ...................................... 3,565,000 3,728,206 Columbus Tax Increment Financing Revenue, Easton Project, AMBAC Insured, Pre-Refunded, 5.30%, 12/01/19 ............................... 1,500,000 1,643,460 Polaris Project, Series A, AMBAC Insured, 4.75%, 12/01/22 .................................. 1,385,000 1,456,411 Crawford County GO, Refunding, AMBAC Insured, 5.25%, 12/01/31 ................................. 1,330,000 1,427,835 Cuyahoga Community College District General Receipts Revenue, Series A, AMBAC Insured, 5.00%, 12/01/22 ................................................................................... 1,000,000 1,074,320 12/01/32 ................................................................................... 3,000,000 3,167,790 Cuyahoga County Hospital Revenue, University Hospitals Health System Inc., AMBAC Insured, 5.40%, 1/15/19 ............................................................................. 1,500,000 1,620,120 5.50%, 1/15/30 ............................................................................. 1,760,000 1,890,117 Cuyahoga County MFHR, Rockefeller Park Project, Series A, GNMA Secured, 5.75%, 1/20/29 ..................................................................................... 1,000,000 1,056,730 Cuyahoga County Utility System Revenue, AMBAC Insured, 5.125%, 2/15/28 ............................................................. 1,000,000 1,058,340 Medical Center Co. Project, Refunding, Series B, MBIA Insured, 6.10%, 8/15/15 .............. 2,945,000 3,021,246 Darke County GO, Real Estate Acquisition and Improvement, FGIC Insured, 5.125%, 12/01/27 .................................................................................... 1,020,000 1,088,228
152 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN OHIO INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) OHIO (CONT.) Dayton City School District GO, School Facilities Construction and Improvement, Series A, FGIC Insured, 5.00%, 12/01/29 ............................................................... $ 8,275,000 $ 8,737,821 Deerefield Township Tax Increment Revenue, Refunding, Series B, MBIA Insured, 5.00%, 12/01/25 .................................................................................... 1,000,000 1,060,880 Defiance GO, MBIA Insured, 6.10%, 12/01/14 ............................................................................ 1,000,000 1,022,900 6.20%, 12/01/20 ............................................................................ 750,000 767,212 Delaware City School District GO, FGIC Insured, Pre-Refunded, 5.75%, 12/01/15 ................. 1,640,000 1,681,820 Dover Municipal Electric System Revenue, FGIC Insured, 6.00%, 12/01/19 ........................ 1,625,000 1,666,129 Eastlake GO, Capital Facilities, MBIA Insured, 5.00%, 12/01/27 ................................ 1,950,000 2,060,974 Eaton City School District GO, FGIC Insured, 5.00%, 12/01/25 .................................. 1,250,000 1,334,625 Edgewood City School District GO, School Improvement, Refunding, FSA Insured, 5.00%, 12/01/24 .................................................................................... 2,220,000 2,394,914 Fairfield City School District GO, FGIC Insured, Pre-Refunded, 6.00%, 12/01/20 ................ 1,000,000 1,016,840 Fairfield County GO, FGIC Insured, 5.00%, 12/01/20 ............................................ 1,600,000 1,721,024 Fairless Ohio Local School District GO, Various Purpose School Facilities Construction, FSA Insured, 5.00%, 12/01/28 ................................................................ 2,085,000 2,216,167 Field Local School District GO, School Facilities Construction and Improvement, AMBAC Insured, 5.00%, 12/01/27 .............................................................. 1,290,000 1,383,319 Finneytown Local School District GO, FGIC Insured, 5.80%, 12/01/24 ............................ 1,980,000 2,151,052 Franklin County Hospital Revenue, Children's Hospital Project, AMBAC Insured, 5.50%, 5/01/21 ................................. 3,365,000 3,688,376 Children's Hospital Project, AMBAC Insured, 5.50%, 5/01/28 ................................. 4,265,000 4,663,052 Holy Cross Health Systems, AMBAC Insured, 5.875%, 6/01/21 .................................. 2,500,000 2,616,425 OhioHealth Corp., Refunding, Series C, MBIA Insured, 5.00%, 5/15/33 ........................ 5,250,000 5,487,930 Franklin GO, MBIA Insured, 5.25%, 12/01/27 .................................................... 1,500,000 1,616,355 Garfield Heights GO, Various Purpose, Refunding and Improvement, FGIC Insured, 5.00%, 12/01/27 .................................................................................... 2,655,000 2,839,204 Georgetown Exempted Village School District GO, Classroom Facilities, FSA Insured, 5.125%, 12/01/31 .................................................................................... 1,000,000 1,075,870 Grand Valley Local School District GO, Classroom Facilities Improvement, FGIC Insured, 5.00%, 12/01/24 ............................................................................. 1,300,000 1,381,731 Greater Cleveland Regional Transit Authority GO, Capital Improvement, Series A, MBIA Insured, 5.125%, 12/01/21 .............................................................. 1,750,000 1,872,990 Green Community Learning Centers Income Tax Revenue, MBIA Insured, 5.00%, 12/01/27 ................................................................................... 1,205,000 1,284,964 12/01/28 ................................................................................... 1,265,000 1,346,011 12/01/32 ................................................................................... 2,675,000 2,831,862 Greene County GO, AMBAC Insured, 5.00%, 12/01/22 ................................................................................... 1,475,000 1,573,633 12/01/28 ................................................................................... 2,620,000 2,763,917 Greene County Sewer System Revenue, Governmental Enterprise, AMBAC Insured, Pre-Refunded, 5.625%, 12/01/25 .............................................. 1,890,000 2,143,298 MBIA Insured, Pre-Refunded, 5.25%, 12/01/25 ................................................ 5,000,000 5,465,950 Greene County Water System Revenue, Governmental Enterprise, MBIA Insured, 5.25%, 12/01/21 ..................................... 5,400,000 5,882,652 Series A, FGIC Insured, Pre-Refunded, 6.125%, 12/01/21 ..................................... 2,100,000 2,302,524
Quarterly Statements of Investments | 153 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN OHIO INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) OHIO (CONT.) Guernsey County GO, Refunding, FGIC Insured, 5.00%, 12/01/23 .................................. $ 2,690,000 $ 2,866,303 Hamilton County Convention Facilities Authority Revenue, FGIC Insured, 5.00%, 12/01/24 .............................................................. 2,795,000 3,000,041 FGIC Insured, 5.00%, 12/01/28 .............................................................. 5,400,000 5,745,816 second lien, FGIC Insured, 5.00%, 12/01/33 ................................................. 7,235,000 7,664,831 Hamilton County Hospital Facilities Revenue, Cincinnati Children's Hospital, Series J, FGIC Insured, 5.25%, 5/15/34 ................................................................ 5,000,000 5,380,450 Hamilton County Sales Tax Revenue, Series B, AMBAC Insured, 5.25%, 12/01/32 ............................................................................ 19,720,000 21,085,610 5.60%, 12/01/32 ............................................................................ 1,200,000 1,334,472 Hamilton County Sewer System Revenue, Refunding and Improvement, MBIA Insured, Pre-Refunded, 5.25%, 12/01/21 ................................................ 1,000,000 1,116,870 Series A, FGIC Insured, Pre-Refunded, 6.05%, 12/01/15 ...................................... 3,010,000 3,120,888 Hamilton GO, One Renaissance Center, Series A, AMBAC Insured, 5.25%, 11/01/18 ................................................................................... 1,010,000 1,105,364 11/01/19 ................................................................................... 1,015,000 1,110,836 11/01/20 ................................................................................... 1,120,000 1,222,402 11/01/21 ................................................................................... 1,180,000 1,284,371 Hamilton Wastewater System Revenue, Series A, FSA Insured, Pre-Refunded, 5.90%, 10/15/21 ............................................................................ 3,040,000 3,195,496 5.20%, 10/15/23 ............................................................................ 7,275,000 7,868,931 Heath City School District GO, School Improvement, Series A, FGIC Insured, 5.60%, 12/01/21 ............................................................................ 1,000,000 1,109,410 5.50%, 12/01/27 ............................................................................ 1,170,000 1,283,595 Highland Local School District GO, School Improvement, FSA Insured, 5.00%, 12/01/23 ................................................................................... 3,680,000 3,892,962 12/01/26 ................................................................................... 3,675,000 3,864,042 (a)Hilliard GO, MBIA Insured, 5.00%, 12/01/21 .................................................... 1,130,000 1,219,033 Hilliard School District GO, Refunding, FGIC Insured, 6.55%, 12/01/05 ................................................... 500,000 509,365 School Improvement, FGIC Insured, Pre-Refunded, 5.75%, 12/01/28 ............................ 4,000,000 4,561,160 School Improvement, Series A, FGIC Insured, 5.25%, 12/01/28 ................................ 3,010,000 3,239,452 Hudson City School District COP, MBIA Insured, 5.00%, 6/01/34 ................................. 6,720,000 7,108,954 Independence Local School District GO, FGIC Insured, 5.25%, 12/01/21 .......................... 1,390,000 1,525,831 Jackson Center Local School District Shelby County GO, Facilities Construction and Improvements, MBIA Insured, 5.00%, 12/01/28 ................................................. 1,175,000 1,239,543 Jackson City School District GO, School Improvement, MBIA Insured, 5.25%, 12/01/27 ............ 3,000,000 3,241,260 Jackson Local School District GO, Stark and Summit Counties Local School District, FSA Insured, Pre-Refunded, 5.50%, 12/01/20 ................................................. 4,000,000 4,477,280 FSA Insured, Pre-Refunded, 5.625%, 12/01/25 ................................................ 3,500,000 3,939,565 MBIA Insured, Pre-Refunded, 5.50%, 12/01/21 ................................................ 3,060,000 3,237,878 Jefferson Local School District Madison County School Construction GO, FGIC Insured, 5.00%, 12/01/25 .................................................................................... 1,200,000 1,289,112 Jonathan Alder Local School District GO, School Facilities Construction and Improvement, MBIA Insured, 4.75%, 12/01/22 ............................................................................ 1,105,000 1,153,841 5.00%, 12/01/27 ............................................................................ 6,195,000 6,547,557 5.00%, 12/01/30 ............................................................................ 3,320,000 3,491,445
154 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN OHIO INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) OHIO (CONT.) Kenston Local School District GO, School Improvement, MBIA Insured, 5.00%, 12/01/24 ................................................................................... $ 2,380,000 $ 2,538,127 12/01/25 ................................................................................... 2,500,000 2,660,825 Kettering City School District GO, School Improvement, FSA Insured, 5.00%, 12/01/28 ................................................................................... 2,970,000 3,160,199 12/01/31 ................................................................................... 2,595,000 2,749,169 Keystone Local School District Lorain County GO, School Improvement, FSA Insured, 5.00%, 12/01/30 .................................................................................... 6,170,000 6,541,311 Lake County Hospital Facilities Revenue, Lake Hospital System Inc., AMBAC Insured, 5.00%, 8/15/23 ..................................................................................... 1,500,000 1,556,385 Lake Ohio Local School District GO, MBIA Insured, 5.30%, 12/01/21 ............................................................................ 1,575,000 1,725,019 5.375%, 12/01/25 ........................................................................... 1,900,000 2,082,229 Lakewood City School District GO, School Improvement, FSA Insured, 5.125%, 12/01/31 .................................................................................... 21,900,000 23,561,553 Lakota Local District GO, AMBAC Insured, Pre-Refunded, 6.125%, 12/01/17 ....................... 3,200,000 3,255,840 Lebanon City School District GO, FSA Insured, 5.00%, 12/01/29 ............................................................ 6,250,000 6,542,500 (a)School Construction, Refunding, FSA Insured, 5.00%, 12/01/20 ............................ 1,940,000 2,103,523 (a)School Construction, Refunding, FSA Insured, 5.00%, 12/01/21 ............................ 1,000,000 1,080,860 (a)School Construction, Refunding, FSA Insured, 5.00%, 12/01/25 ............................ 1,050,000 1,122,408 Licking County Joint Vocational School District GO, School Facilities Construction and Improvement, MBIA Insured, 5.00%, 12/01/21 ............................................................................ 2,200,000 2,351,536 4.75%, 12/01/23 ............................................................................ 2,230,000 2,325,645 Licking Heights Local School District GO, School Facilities Construction and Improvement, Refunding, Series A, MBIA Insured, 5.00%, 12/01/22 ......................................... 1,860,000 2,010,400 Refunding, Series A, MBIA Insured, 5.00%, 12/01/23 ......................................... 1,885,000 2,034,198 Refunding, Series A, MBIA Insured, 5.00%, 12/01/27 ......................................... 1,275,000 1,367,233 Refunding, Series A, MBIA Insured, 5.00%, 12/01/32 ......................................... 1,320,000 1,404,361 Series A, FGIC Insured, 5.625%, 12/01/28 ................................................... 4,000,000 4,453,200 Logan Hocking Local School District GO, Construction and Improvement, MBIA Insured, 5.00%, 12/01/22 ................................................................................... 1,200,000 1,270,848 12/01/29 ................................................................................... 1,000,000 1,046,800 London City School District GO, School Facilities Construction and Improvement, FGIC Insured, 5.00%, 12/01/22 ................................................................................... 700,000 741,328 12/01/29 ................................................................................... 1,500,000 1,570,200 Lorain County GO, Sewer System Improvement, MBIA Insured, 5.00%, 12/01/19 ..................... 1,640,000 1,760,261 Lorain County Health Facilities Revenue, Catholic Healthcare Partners, Series A, AMBAC Insured, 5.50%, 9/01/29 ............................................................... 6,250,000 6,728,062 Lorain County Hospital Revenue, Catholic Healthcare Partners, Refunding, Series B, MBIA Insured, 5.50%, 9/01/27 ................................................................ 5,000,000 5,333,250 Lorain GO, Urban Renewal, MBIA Insured, 5.70%, 12/01/28 ....................................... 1,050,000 1,175,685 Louisville City School District GO, FGIC Insured, 5.00%, 12/01/24 ............................. 3,500,000 3,694,355
Quarterly Statements of Investments | 155 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN OHIO INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) OHIO (CONT.) Loveland City School District GO, Series A, MBIA Insured, Pre-Refunded, 5.00%, 12/01/24 .................................................................................... $ 4,000,000 $ 4,358,440 Lucas County GO, 8.00%, 12/01/06 ................................................................................... 120,000 128,596 12/01/08 ................................................................................... 110,000 127,247 12/01/09 ................................................................................... 120,000 142,993 12/01/10 ................................................................................... 220,000 269,960 Lucas County Hospital Revenue, Promedica Healthcare Obligation Group, MBIA Insured, 5.75%, 11/15/14 .............................................................. 300,000 317,229 Refunding, AMBAC Insured, 5.375%, 11/15/29 ................................................. 750,000 809,070 Refunding, MBIA Insured, ETM, 5.75%, 11/15/14 .............................................. 4,460,000 4,623,459 Mad River Local School District GO, Classroom Facilities, FGIC Insured, 5.125%, 12/01/24 .................................................................................... 4,180,000 4,484,722 Madison Local School District Butler County GO, MBIA Insured, 5.75%, 12/01/26 .............................................................. 1,000,000 1,112,410 School Improvement, FGIC Insured, 5.60%, 12/01/26 .......................................... 1,120,000 1,255,442 Mahoning County Hospital Facilities Revenue, Western Reserve Care, MBIA Insured, ETM, 5.50%, 10/15/25 ............................................................................. 4,750,000 5,264,045 Mahoning County Sewer System Revenue, AMBAC Insured, 5.375%, 12/01/18 ......................... 1,905,000 2,075,917 Marietta Water Revenue, AMBAC Insured, Pre-Refunded, 5.95%, 12/01/21 .......................... 3,875,000 4,088,435 Marion County City School District GO, School Facilities Construction and Improvement Project, FSA Insured, 5.55%, 12/01/20 ............................................................................ 1,000,000 1,113,640 5.625%, 12/01/22 ........................................................................... 1,100,000 1,226,764 Marion County GO, AMBAC Insured, 5.05%, 12/01/31 .............................................. 1,500,000 1,581,255 Martins Ferry City School District GO, School Facilities Construction and Improvement, FSA Insured, 5.00%, 12/01/32 ................................................................ 3,610,000 3,840,715 Marysville Exempted Village School District COP, School Facilities Project, MBIA Insured, 5.25%, 12/01/28 ................................................................................... 2,120,000 2,275,099 12/01/30 ................................................................................... 2,650,000 2,848,326 Marysville Exempted Village School District GO, FSA Insured, 5.30%, 12/01/21 ............................................................... 2,000,000 2,166,860 FSA Insured, 5.35%, 12/01/25 ............................................................... 2,010,000 2,183,684 FSA Insured, 5.375%, 12/01/29 .............................................................. 2,465,000 2,674,648 Refunding, MBIA Insured, 5.00%, 12/01/29 ................................................... 1,000,000 1,052,950 School Improvement, AMBAC Insured, Pre-Refunded, 6.00%, 12/01/29 ........................... 2,890,000 3,331,650 Mason City School District GO, Refunding, MBIA Insured, 5.00%, 12/01/20 ................................................... 5,495,000 5,868,056 School Improvement, FSA Insured, 5.00%, 12/01/31 ........................................... 5,000,000 5,297,050 Maumee City School District GO, School Facilities Construction and Improvements, FSA Insured, 5.00%, 12/01/27 ................................................................ 3,610,000 3,838,405 Medina City School District GO, Refunding, MBIA Insured, 5.00%, 12/01/27 ...................... 2,015,000 2,152,262 Medina GO, 5.00%, 12/01/22 .................................................................... 1,100,000 1,185,382 Miami University General Receipts Revenue, Refunding, AMBAC Insured, 5.00%, 12/01/22 .................................................................................... 1,675,000 1,799,620 Middletown City School District GO, FGIC Insured, 5.00%, 12/01/31 ............................. 5,475,000 5,785,213
156 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN OHIO INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) OHIO (CONT.) Milford Exempted Village School District GO, School Improvement, FSA Insured, 5.00%, 12/01/22 ............................................................................ $ 2,000,000 $ 2,118,080 5.125%, 12/01/30 ........................................................................... 7,325,000 7,732,197 Minerva Local School District GO, Classroom Facilities, MBIA Insured, 5.30%, 12/01/29 ......... 1,300,000 1,408,498 Minster School District School Facilities and Construction GO, FSA Insured, 5.70%, 12/01/23 ............................................................................ 3,190,000 3,629,518 5.75%, 12/01/27 ............................................................................ 3,260,000 3,717,345 Monroe Local School District GO, AMBAC Insured, 5.00%, 12/01/23 ............................... 1,000,000 1,065,540 Morley Library District GO, Lake County District Library, Library Improvement, AMBAC Insured, 4.75%, 12/01/21 .............................................................. 1,000,000 1,046,830 New Albany Community Authority Community Facilities Revenue, Refunding, Series B, AMBAC Insured, 5.125%, 10/01/21 ........................................................................... 3,000,000 3,220,140 5.20%, 10/01/24 ............................................................................ 5,000,000 5,404,750 New Lexington HDC Mortgage Revenue, Lincoln Park, Refunding, Series A, MBIA Insured, 5.85%, 1/01/21 ............................................................................... 895,000 918,807 Nordonia Hills Local School District GO, School Improvement, AMBAC Insured, 5.45%, 12/01/25 .................................................................................... 3,035,000 3,328,060 Oak Hills Local School District GO, (a)Advance, Refunding, FSA Insured, 5.00%, 12/01/23 ........................................ 3,740,000 4,047,952 (a)Advance, Refunding, FSA Insured, 5.00%, 12/01/24 ........................................ 3,065,000 3,306,491 (a)Advance, Refunding, FSA Insured, 5.00%, 12/01/25 ........................................ 1,415,000 1,522,724 MBIA Insured, 5.45%, 12/01/21 ........................................................... 5,000,000 5,318,800 Ohio Capital Corp. HMR, Refunding, Series G, MBIA Insured, 6.35%, 7/01/22 .......................................... 1,970,000 2,011,744 Westview Apartments, Refunding, Series A, MBIA Insured, 6.125%, 1/01/15 .................... 1,505,000 1,532,391 Westview Apartments, Refunding, Series A, MBIA Insured, 6.25%, 1/01/23 ..................... 2,565,000 2,627,791 Ohio Center Local Government Capital Asset Financing Program Fractionalized Institute GO, FSA Insured, 4.875%, 12/01/18 ........................................................................... 1,255,000 1,350,280 5.25%, 12/01/23 ............................................................................ 1,410,000 1,550,788 Ohio HFA, MFHR, Wind River Apartment Project, Series A, GNMA Secured, 5.65%, 5/01/32 ................. 2,035,000 2,108,667 RMR, Series C, GNMA Secured, 5.75%, 9/01/30 ................................................ 2,260,000 2,320,048 Ohio Municipal Electric Generation Agency Revenue, Joint Venture 5, CBI, Refunding, AMBAC Insured, 5.00%, 2/15/23 ............................................................... 3,000,000 3,211,590 Ohio State Air Quality Development Authority Revenue, Cincinnati Gas and Electric, Refunding, Series B, MBIA Insured, 5.45%, 1/01/24 ............. 3,500,000 3,543,645 JMG Funding LP Project, AMBAC Insured, 5.625%, 10/01/22 .................................... 6,875,000 7,289,219 Ohio Power Co., Refunding, Series C, AMBAC Insured, 5.15%, 5/01/26 ......................... 9,075,000 9,655,709 Ohio State Building Authority Revenue, Adult Correctional Facilities, Series A, AMBAC Insured, Pre-Refunded, 5.60%, 4/01/16 ................................................................................ 2,000,000 2,116,920 (a)State Facilities Adult Correctional Projects, Series A, FSA Insured, 5.00%, 4/01/25 ..... 2,000,000 2,147,640 State Facilities, Administration Building Fund Project, Refunding, Series A, FSA Insured, 5.00%, 4/01/22 ......................................................................... 3,100,000 3,291,053
Quarterly Statements of Investments | 157 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN OHIO INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) OHIO (CONT.) Ohio State Department of Transportation COP, Panhandle Rail Line Project, FSA Insured, 6.50%, 4/15/12 .............................................................................. $ 890,000 $ 893,515 Ohio State Education Loan Revenue, Series A-1, AMBAC Insured, 5.85%, 12/01/19 ................. 1,050,000 1,050,000 Ohio State GO, Common Schools, Series B, 4.625%, 9/15/22 ...................................... 5,000,000 5,174,750 Ohio State Higher Educational Facility Revenue, Case Western Reserve University Project, Series A, AMBAC Insured, 5.00%, 12/01/34 .................................................... 4,935,000 5,207,412 Ohio State Higher Educational Facility Commission Revenue, FGIC Insured, 5.00%, 5/01/23 ............................................................... 8,460,000 9,040,441 Higher Educational Facility Oberlin College, AMBAC Insured, 5.00%, 10/01/26 ................ 8,000,000 8,473,680 University of Dayton Project, XLCA Insured, 5.00%, 12/01/34 ................................ 8,500,000 9,014,250 Xavier University Higher Educational Facility, MBIA Insured, 5.375%, 5/15/22 ............... 3,500,000 3,711,295 Ohio State Turnpike Commission Turnpike Revenue, AMBAC Insured, 5.25%, 2/15/31 ................ 16,425,000 17,375,350 Ohio State University General Receipts Athens Revenue, FSA Insured, 5.00%, 12/01/24 ............................................................... 3,025,000 3,190,286 MBIA Insured, 5.00%, 12/01/24 .............................................................. 2,155,000 2,313,091 Ohio State University General Receipts Revenue, Series A, 5.125%, 12/01/31 ................................................................. 2,500,000 2,672,225 State University Ohio, Series B, MBIA Insured, 5.00%, 6/01/33 .............................. 5,255,000 5,537,982 Ohio State Water Development Authority Pollution Control Facilities Revenue, Pennsylvania Power Co. Project, Refunding, AMBAC Insured, 6.15%, 8/01/23 ................... 3,420,000 3,475,507 Water Control Loan Fund, Water Quality Series, MBIA Insured, Pre-Refunded, 5.125%, 6/01/19 .................................................................................. 5,000,000 5,316,100 Ohio State Water Development Authority Revenue, Dayton Power, Refunding, Series A, AMBAC Insured, 6.40%, 8/15/27 ........................... 5,000,000 5,026,400 Drinking Water Fund, Leverage, Refunding, 5.00%, 6/01/23 ................................... 2,255,000 2,404,281 Pure Water, Refunding and Improvement, AMBAC Insured, 5.50%, 12/01/11 ...................... 270,000 270,707 Pure Water, Refunding and Improvement, AMBAC Insured, 5.50%, 12/01/18 ...................... 385,000 386,009 Pure Water, Series I, AMBAC Insured, ETM, 7.00%, 12/01/09 .................................. 2,000,000 2,164,360 Olentangy Local School District GO, BIG Insured, 7.75%, 12/01/08 ............................................................... 375,000 433,406 BIG Insured, 7.75%, 12/01/09 ............................................................... 375,000 446,074 BIG Insured, 7.75%, 12/01/10 ............................................................... 375,000 458,021 FSA Insured, 5.00%, 12/01/25 ............................................................... 1,835,000 1,940,256 FSA Insured, 5.00%, 12/01/30 ............................................................... 4,000,000 4,194,680 School Facilities Construction and Improvement, FSA Insured, Pre-Refunded, 5.625%, 12/01/27 ................................................................................. 4,500,000 5,065,155 School Facilities Construction and Improvement, Series A, FGIC Insured, 5.25%, 12/01/32 ................................................................................. 11,200,000 12,152,000 Ottawa and Glandorf Local School District GO, School Facilities Construction and Improvement, MBIA Insured, 5.25%, 12/01/23 .................................................. 2,175,000 2,374,556 Perrysburg Exempted Village School District GO, Series B, FSA Insured, 5.00%, 12/01/25 .................................................................................... 5,000,000 5,309,250 Pickerington Local School District GO, AMBAC Insured, 5.00%, 12/01/25 ............................................................. 7,000,000 7,432,950 School Facilities Construction and Improvement, FGIC Insured, 5.00%, 12/01/28 .............. 3,000,000 3,145,590 Plain Local School District GO, FGIC Insured, 6.00%, 12/01/25 ............................................................................ 800,000 914,272 Pre-Refunded, 6.00%, 12/01/25 .............................................................. 3,700,000 4,267,580
158 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN OHIO INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) OHIO (CONT.) Plainesville City School District GO, School Improvement, FGIC Insured, 5.00%, 12/01/28 .................................................................................... $ 2,515,000 $ 2,683,379 Princeton City School District GO, MBIA Insured, 5.00%, 12/01/25 ................................................................................... 1,700,000 1,815,090 12/01/26 ................................................................................... 2,725,000 2,901,444 12/01/30 ................................................................................... 1,830,000 1,935,024 Ridgewood Local School District GO, School Facilities Improvement, FSA Insured, 6.00%, 12/01/24 .................................................................................... 1,730,000 1,986,818 Rittman Exempted Village School District GO, School Improvement, FSA Insured, 5.125%, 12/01/31 .................................................................................... 1,000,000 1,058,660 Riverside Local School District GO, School Facilities Construction and Improvement, MBIA Insured, 5.75%, 12/01/22 ............................................................... 1,000,000 1,127,330 Rural Lorain County Water Authority Water Resource Revenue, AMBAC Insured, 5.875%, 10/01/24 .................................................................................... 3,100,000 3,468,869 Salem GO, AMBAC Insured, 6.50%, 12/01/06 ...................................................... 800,000 824,840 Shaker Heights GO, Urban Renewal, Refunding, AMBAC Insured, 5.00%, 12/01/21 ............................................................................ 1,225,000 1,318,884 5.25%, 12/01/26 ............................................................................ 725,000 787,546 Sidney City School District GO, School Improvement, FGIC Insured, 5.125%, 12/01/28 ............................................................. 1,425,000 1,514,647 Refunding, Series B, FGIC Insured, 5.25%, 12/01/23 ......................................... 1,780,000 1,932,671 Refunding, Series B, FGIC Insured, 5.25%, 12/01/28 ......................................... 1,000,000 1,076,230 South Range Local School District GO, MBIA Insured, 6.15%, 12/01/18 ........................... 375,000 379,852 South-Western City School District of Ohio Franklin and Pickway Counties GO, FGIC Insured, ETM, 7.875%, 12/01/06 ................................................................................... 600,000 644,082 12/01/07 ................................................................................... 600,000 671,022 Southwest Regional Water District Water Revenue, MBIA Insured, Pre-Refunded, 6.00%, 12/01/15 ................................................................................... 1,000,000 1,026,720 12/01/20 ................................................................................... 700,000 718,704 Springboro Sewer System Revenue, Mortgage, MBIA Insured, 5.00%, 6/01/25 .................................................................................... 1,000,000 1,071,020 6/01/27 .................................................................................... 1,095,000 1,167,664 St. Henry Local Consolidated School District GO, MBIA Insured, 5.75%, 12/01/22 ................ 1,515,000 1,707,905 St. Mary's Waterworks Revenue, AMBAC Insured, 6.65%, 12/01/11 ................................. 750,000 752,392 Steubenville City School District GO, School Facilities and Implementation, MBIA Insured, 5.60%, 12/01/22 ............................................................................. 1,500,000 1,667,010 Streetsboro City School District GO, School Improvement, MBIA Insured, 5.00%, 12/01/25 .................................................................................... 2,500,000 2,634,425 Struthers City School District GO, Refunding, AMBAC Insured, 5.50%, 12/01/22 .................. 1,950,000 2,147,184 Summit County GO, Sanitary Sewer System Improvement, FGIC Insured, Pre-Refunded, 5.25%, 12/01/21 ............................................................................. 4,505,000 5,053,979 Swanton Local School District GO, School Improvement, FGIC Insured, 5.25%, 12/01/25 ........... 1,895,000 2,049,594 Sycamore Community City School District COP, Blue Ash Elementary School Project, AMBAC Insured, 5.125%, 12/01/25 ............................................................. 1,000,000 1,065,550
Quarterly Statements of Investments | 159 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN OHIO INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) OHIO (CONT.) Sylvania City School District GO, FGIC Insured, Pre-Refunded, 5.75%, 12/01/22 ................................................ $ 1,500,000 $ 1,538,250 Refunding, FGIC Insured, 5.00%, 12/01/22 ................................................... 1,550,000 1,653,524 Various Purpose, FGIC Insured, 5.30%, 12/01/20 ............................................. 2,225,000 2,436,931 Toledo City School District GO, School Facilities Improvement, FSA Insured, 5.00%, 12/01/23 ............................................................... 1,500,000 1,609,365 Series B, FGIC Insured, 5.00%, 12/01/27 .................................................... 1,925,000 2,046,795 Toledo GO, Limited Tax, 7.375%, 12/01/05 ........................................................................... 650,000 664,144 7.375%, 12/01/06 ........................................................................... 625,000 664,100 AMBAC Insured, Pre-Refunded, 5.95%, 12/01/15 ............................................... 3,715,000 3,850,040 AMBAC Insured, Pre-Refunded, 6.00%, 12/01/16 ............................................... 1,000,000 1,065,400 Toledo Sewer System Revenue, AMBAC Insured, 5.00%, 11/15/22 ................................................................................... 1,000,000 1,074,050 11/15/23 ................................................................................... 1,000,000 1,072,570 Trenton Water System Revenue, Improvement, FSA Insured, 5.125%, 12/01/34 ...................... 2,750,000 2,954,160 Tri-Valley Local School District GO, FGIC Insured, 5.25%, 12/01/29 ............................ 8,530,000 9,137,336 Trotwood-Madison City School District GO, School Improvement, FGIC Insured, 5.375%, 12/01/22 ..................................................................................... 1,685,000 1,861,302 Trumbull County GO, Refunding, MBIA Insured, 5.20%, 12/01/20 .................................. 1,475,000 1,614,166 Twinsburg GO, Golf Course, Refunding, FGIC Insured, 5.00%, 12/01/21 ...................................... 1,000,000 1,060,810 Park Land and Conservation, FGIC Insured, 5.00%, 12/01/21 .................................. 1,000,000 1,060,810 Union County GO, MBIA Insured, 5.00%, 12/01/33 ................................................ 2,895,000 3,033,728 University of Akron General Receipts Revenue, FGIC Insured, 4.75%, 1/01/25 ............................................................................. 1,080,000 1,130,306 5.00%, 1/01/28 ............................................................................. 1,475,000 1,565,757 5.00%, 1/01/35 ............................................................................. 5,250,000 5,549,722 Pre-Refunded, 5.70%, 1/01/24 ............................................................... 7,050,000 7,897,339 Pre-Refunded, 5.75%, 1/01/29 ............................................................... 1,500,000 1,683,465 University of Cincinnati COP, Jefferson Avenue Residence Hall, MBIA Insured, 5.125%, 6/01/28 ..................................................................................... 7,400,000 7,754,904 University of Cincinnati General Receipts Revenue, AMBAC Insured, 5.00%, 6/01/31 .............................................................. 1,350,000 1,418,823 Series A, AMBAC Insured, 5.00%, 6/01/19 .................................................... 2,625,000 2,873,482 Series A, AMBAC Insured, 5.00%, 6/01/20 .................................................... 3,330,000 3,633,663 Series A, AMBAC Insured, 5.00%, 6/01/22 .................................................... 1,610,000 1,735,661 Series A, AMBAC Insured, 5.00%, 6/01/23 .................................................... 1,845,000 1,986,106 Series A, AMBAC Insured, 5.00%, 6/01/24 .................................................... 1,940,000 2,082,318 Series A, AMBAC Insured, 5.00%, 6/01/25 .................................................... 2,005,000 2,147,395 Series AD, MBIA Insured, Pre-Refunded, 5.125%, 6/01/20 ..................................... 1,500,000 1,565,700 Series W, MBIA Insured, 5.85%, 6/01/16 ..................................................... 1,630,000 1,692,804 Upper Arlington County School District GO, MBIA Insured, Pre-Refunded, 5.25%, 12/01/22 .................................................................................... 5,000,000 5,224,550 Upper Scioto Valley Local School District GO, School Facilities Construction and Improvement, FGIC Insured, 5.25%, 12/01/25 ............................................................... 1,160,000 1,247,708
160 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN OHIO INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) OHIO (CONT.) Van Wert City School District GO, School Improvement, FGIC Insured, 5.00%, 12/01/27 ................................................................................... $ 4,805,000 $ 5,078,453 12/01/30 ................................................................................... 2,500,000 2,629,100 Wadsworth City School District GO, FGIC Insured, 5.75%, 12/01/22 .............................. 1,200,000 1,343,952 Warren City School District GO, School Improvement, FGIC Insured, 5.00%, 12/01/28 ............. 3,000,000 3,192,120 Warrensville Heights City School District GO, School Improvement, FGIC Insured, 5.625%, 12/01/20 ........................................................................... 3,500,000 3,910,795 5.75%, 12/01/24 ............................................................................ 2,750,000 3,092,788 Waterville GO, Refunding, MBIA Insured, 5.05%, 12/01/26 ....................................... 1,085,000 1,151,652 Wausen Exempted Village School District GO, School Improvements, MBIA Insured, Pre-Refunded, 5.50%, 12/01/17 ............................................................... 1,800,000 1,907,046 Wayne Local School District GO, Warren County, AMBAC Insured, Pre-Refunded, 6.10%, 12/01/24 .................................................................................... 1,800,000 1,903,068 West Chester Township GO, AMBAC Insured, 5.00%, 12/01/25 ...................................... 1,500,000 1,580,655 West Muskingum Local School District School Facilities GO, FGIC Insured, 5.00%, 12/01/24 .................................................................................... 2,750,000 2,942,308 Westfall Local School District GO, School Facilities Construction Improvement, FGIC Insured, 6.00%, 12/01/22 ............................................................................. 2,850,000 3,221,270 Wheelersburgs Local School District GO, School Improvement, FSA Insured, 5.00%, 12/01/32 .................................................................................... 1,400,000 1,489,474 Wilmington Water Revenue, First Mortgage System, AMBAC Insured, 5.25%, 6/15/29 ............................................................................. 3,320,000 3,520,594 Pre-Refunded, 6.00%, 6/15/21 ............................................................... 2,510,000 2,616,123 Woodmore Local School District GO, Refunding, AMBAC Insured, 5.65%, 12/01/08 .................. 500,000 507,120 Youngstown City School District GO, Classroom Facilities and School Improvement, FSA Insured, 5.00%, 12/01/22 ................................................................................... 1,865,000 2,009,593 12/01/23 ................................................................................... 1,955,000 2,103,385 Zanesville City School District GO, School Improvement, MBIA Insured, 4.75%, 12/01/22 ............................................................................ 5,500,000 5,783,800 4.75%, 12/01/26 ............................................................................ 3,250,000 3,400,508 5.05%, 12/01/29 ............................................................................ 3,500,000 3,722,180 -------------- 998,006,935 -------------- U.S. TERRITORIES 2.9% Puerto Rico Commonwealth GO, MBIA Insured, Pre-Refunded, 5.75%, 7/01/24 ................................................. 2,000,000 2,034,980 Public Improvement, Series A, FGIC Insured, Pre-Refunded, 5.00%, 7/01/32 ................... 10,000,000 11,098,300 Puerto Rico Port Authority Revenue, Series D, FGIC Insured, 6.00%, 7/01/21 .................... 11,000,000 11,032,010 University of Puerto Rico Revenues, Series M, MBIA Insured, 5.25%, 6/01/25 .................... 6,000,000 6,110,700 -------------- 30,275,990 -------------- TOTAL BONDS (COST $961,640,120) ............................................................... 1,028,282,925 --------------
Quarterly Statements of Investments | 161 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN OHIO INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) ZERO COUPON BONDS 0.7% OHIO 0.7% (a)Canal Winchester Local School District GO, Capital Appreciation, MBIA Insured, 12/01/32 ................................................................................... $ 1,455,000 $ 379,304 12/01/33 ................................................................................... 2,000,000 495,120 Hilliard School District GO, Capital Appreciation, School Construction, Refunding, MBIA Insured, 12/01/19 ................................................................................... 2,190,000 1,163,744 12/01/20 ................................................................................... 4,525,000 2,281,053 (a)Lebanon City School District GO, Capital Appreciation, School Construction, Refunding, FSA Insured, 12/01/13 ................................................................................... 1,000,000 717,300 12/01/14 ................................................................................... 1,365,000 933,701 12/01/15 ................................................................................... 1,115,000 726,790 Marysville Exempted Village School District GO, Capital Appreciation, Refunding, MBIA Insured, 12/01/20 ................................................................................... 1,000,000 511,800 12/01/21 ................................................................................... 1,000,000 485,430 -------------- TOTAL ZERO COUPON BONDS (COST $7,464,071) ..................................................... 7,694,242 -------------- TOTAL LONG TERM INVESTMENTS (COST $969,104,191) ............................................... 1,035,977,167 -------------- SHORT TERM INVESTMENTS 0.5% BONDS 0.5% OHIO 0.5% (b)Cuyahoga County Hospital Revenue, University Hospitals of Cleveland, Daily VRDN and Put, 2.86%, 1/01/16 .............................................................................. 2,300,000 2,300,000 (b)Ohio State Air Quality Development Authority Revenue, Pollution Control, Ohio Edison Co., Series C, Daily VRDN and Put, 2.98%, 6/01/23 ................................................ 2,500,000 2,500,000 -------------- TOTAL SHORT TERM INVESTMENTS (COST $4,800,000) ................................................ 4,800,000 -------------- TOTAL INVESTMENTS (COST $973,904,191) 100.8% .................................................. 1,040,777,167 OTHER ASSETS, LESS LIABILITIES (0.8)% ......................................................... (8,369,582) -------------- NET ASSETS 100.0% ............................................................................. $1,032,407,585 ==============
See Selected Portfolio Abbreviations on page 180. (a) Security purchased on a when-issued or delayed delivery basis. (b) Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. 162 | See Notes to Statements of Investments. | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN OREGON TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 97.2% BONDS 96.3% OREGON 78.7% Bend Sewer Revenue, AMBAC Insured, 5.375%, 10/01/20 ............................................. $ 1,550,000 $ 1,683,005 Benton and Linn County School District No. 509J GO, Corvallis, FSA Insured, 5.00%, 6/01/22 ....................................................................................... 5,000,000 5,371,100 Benton County Hospital Facilities Authority Revenue, Samaritan Health Services Project, Refunding, 5.20%, 10/01/17 .............................................................................. 4,000,000 4,180,440 5.125%, 10/01/28 ............................................................................. 4,500,000 4,623,120 Clackamas County Hospital Facility Authority Revenue, Gross Willamette Falls, Refunding, 5.75%, 4/01/15 ............................................ 2,100,000 2,104,389 Kaiser Permanente, Series A, ETM, 5.375%, 4/01/14 ............................................ 2,500,000 2,733,500 Willamette Falls Hospital Project, 6.00%, 4/01/19 ............................................ 1,000,000 1,052,990 Willamette View Inc. Project, Refunding, 6.10%, 11/01/12 ..................................... 500,000 511,500 Willamette View Inc. Project, Refunding, 6.30%, 11/01/21 ..................................... 1,500,000 1,524,645 Clackamas County Hospital Facility Authority Revenue, Gross Willamette Falls Project, Refunding, 5.375%, 4/01/22 .............................................................................. 2,125,000 2,207,875 5.125%, 4/01/26 .............................................................................. 1,000,000 1,002,610 Clackamas County School District No. 007J Lake Oswego GO, MBIA Insured, 5.00%, 6/01/26 ....................................................................................... 5,000,000 5,266,900 Clackamas County School District No. 62C Oregon City GO, Refunding, FSA Insured, 5.00%, 6/15/20 ....................................................................................... 2,560,000 2,768,589 Clackamas County School District No. 86 GO, Canby, 5.25%, 6/15/20 ........................................................................ 3,000,000 3,291,090 Refunding, FGIC Insured, 5.00%, 6/15/20 ...................................................... 2,000,000 2,162,960 Clackamas County School District No. 108 GO, FSA Insured, Pre-Refunded, 5.00%, 6/15/25 ....................................................................................... 5,000,000 5,498,850 Coos County School District No. 13 GO, FSA Insured, 5.00%, 6/15/22 ............................................................................... 55,000 59,498 Pre-Refunded, 5.00%, 6/15/22 ................................................................. 2,465,000 2,726,093 Curry County School District No. 17-C Brookings Harbor GO, Pre-Refunded, 5.375%, 12/15/20 ...................................................................................... 2,750,000 3,062,895 Deschutes and Jefferson Counties School District No. 02J Redmond GO, Series A, FGIC Insured, 5.00%, 6/15/21 ................................................................................ 1,000,000 1,081,480 Deschutes County Administrative School District No. 1 GO, Series A, FSA Insured, Pre-Refunded, 5.125%, 6/15/21 ............................................................................... 3,500,000 3,873,030 Emerald Peoples Utility District Revenue, Refunding, Series A, FSA Insured, 5.25%, 11/01/21 ...................................................................................... 1,000,000 1,102,010 Eugene Public Safety Facilities GO, FGIC Insured, 5.70%, 6/01/16 ................................ 500,000 513,675 Gresham Stormwater Revenue, FGIC Insured, 5.30%, 5/01/21 ........................................ 1,190,000 1,292,197 High Desert Education Service District GO, AMBAC Insured, 4.50%, 6/01/30 ........................ 1,010,000 1,027,089 Hillsboro GO, AMBAC Insured, 5.00%, 6/01/29 ..................................................... 5,360,000 5,703,254 Hillsboro Hospital Facility Authority Revenue, Hospital Tuality Healthcare Project, Radian Insured, 5.375%, 10/01/26 ..................................................................................... 2,000,000 2,144,200 10/01/31 ..................................................................................... 2,000,000 2,140,740 Jackson County School District No. 004 GO, FSA Insured, 5.00%, 6/15/20 ............................................................................... 1,450,000 1,562,447 Pre-Refunded, 5.00%, 6/15/20 ................................................................. 550,000 604,873
Quarterly Statements of Investments | 163 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN OREGON TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) OREGON (CONT.) Jackson County School District No. 6 Central Point GO, Refunding, FSA Insured, 4.75%, 6/15/20 ....................................................................................... $ 2,155,000 $ 2,286,563 Jackson County School District No. 9 Eagle Point GO, Pre-Refunded, 5.00%, 6/15/20 ...................................................................................... 1,680,000 1,847,614 6/15/21 ...................................................................................... 1,500,000 1,649,655 Josephine County Unit School District Three Rivers GO, Refunding, FGIC Insured, 5.00%, 12/15/20 ...................................................................................... 1,500,000 1,655,700 Klamath Falls Inter Community Hospital Authority Revenue, Merle West Medical Center Project, Refunding, 6.25%, 9/01/31 ..................................................................... 5,250,000 5,661,022 Lane and Douglas Counties School District No. 045J3 GO, South Lane District, Refunding, FSA Insured, 4.75%, 6/15/25 ................................................................... 3,510,000 3,659,035 Lane County School District No. 052 Bethel GO, Refunding, FSA Insured, 5.00%, 6/15/20 ........... 5,700,000 6,111,369 Lane County School District No. 4J Eugene GO, FSA Insured, 4.75%, 7/01/22 ....................... 5,150,000 5,382,677 Linn County Community School District No. 9 GO, Lebanon, FGIC Insured, Pre-Refunded, 5.55%, 6/15/21 .......................................... 1,155,000 1,326,517 Lebanon, FGIC Insured, Pre-Refunded, 5.60%, 6/15/30 .......................................... 9,495,000 10,938,145 MBIA Insured, Pre-Refunded, 5.375%, 6/15/30 .................................................. 5,000,000 5,526,300 Linn County School District No. 55 GO, Sweet Home, FSA Insured, 5.00%, 6/15/29 .................. 1,000,000 1,049,290 Marion County Housing Authority Revenue, Elliott Residence Project, GNMA Secured, 7.50%, 10/20/25 ...................................................................................... 1,150,000 1,232,938 Medford Hospital Facilities Authority Revenue, Asante Health System, Series A, MBIA Insured, 5.00%, 8/15/18 ...................................................................................... 8,000,000 8,411,600 8/15/24 ...................................................................................... 5,300,000 5,549,683 Multnomah County Educational Facilities Revenue, University of Portland Project, 6.00%, 4/01/25 ....................................................................................... 2,000,000 2,169,340 Multnomah County GO, Refunding, AMBAC Insured, 4.50%, 8/01/19 ................................... 1,500,000 1,566,345 Multnomah County School District No. 007 Reynolds GO, Refunding, MBIA Insured, 5.00%, 6/15/20 ...................................................... 2,000,000 2,231,500 Series 2005, MBIA Insured, 5.00%, 6/01/35 .................................................... 3,220,000 3,317,405 Multnomah County School District No. 40 GO, FSA Insured, 5.00%, 12/01/20 ........................ 3,490,000 3,685,265 Multnomah-Clackamas Counties Centennial School District No. 28-302 GO, FGIC Insured, Pre-Refunded, 5.00%, 6/15/21 .................................................................. 5,000,000 5,498,850 Northern Wasco County Peoples Utilities District Hydroelectric Revenue, McNary Dam Fishway Project, 5.20%, 12/01/24 ...................................................................... 5,000,000 5,062,350 Oak Lodge Water District GO, AMBAC Insured, 7.40%, 12/01/08 .............................................................................. 215,000 219,898 7.50%, 12/01/09 .............................................................................. 215,000 220,003 Oregon City Sewer Revenue, Pre-Refunded, 6.875%, 10/01/19 ....................................... 4,000,000 4,094,160 Oregon Coast Community College District GO, MBIA Insured, 5.00%, 6/15/23 ........................ 3,745,000 4,047,184 Oregon Health Sciences University Revenue, Series A, MBIA Insured, 5.00%, 7/01/32 ............... 23,750,000 25,034,638 Oregon State Department of Administrative Services COP, FSA Insured, 4.375%, 5/01/25 ................................................................. 1,235,000 1,246,313 FSA Insured, 4.625%, 5/01/30 ................................................................. 7,795,000 7,957,448 Refunding, Series A, AMBAC Insured, 5.00%, 5/01/24 ........................................... 10,000,000 10,470,000 Refunding, Series B, AMBAC Insured, 5.00%, 5/01/26 ........................................... 7,500,000 7,953,375
164 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN OREGON TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) OREGON (CONT.) Oregon State Department of Administrative Services COP, (cont.) Refunding, Series B, FSA Insured, 5.00%, 5/01/21 ............................................. $ 1,930,000 $ 2,070,427 Refunding, Series B, FSA Insured, 4.25%, 5/01/24 ............................................. 1,890,000 1,894,120 Series A, AMBAC Insured, Pre-Refunded, 6.00%, 5/01/26 ........................................ 2,000,000 2,282,420 Oregon State Department of Transportation Highway Usertax Revenue, Series A, 5.00%, 11/15/28 ...................................................................................... 5,000,000 5,341,450 Oregon State Department of Transportation Usertax Revenue, Refunding, Series A, 5.00%, 11/15/22 ......................................................... 1,200,000 1,300,512 Refunding, Series A, 5.00%, 11/15/23 ......................................................... 1,260,000 1,362,438 Refunding, Series A, 5.00%, 11/15/25 ......................................................... 1,295,000 1,390,778 Refunding, Series A, 5.00%, 11/15/29 ......................................................... 3,330,000 3,552,011 Series A, 5.125%, 11/15/23 ................................................................... 5,000,000 5,389,250 Series A, 5.125%, 11/15/26 ................................................................... 14,200,000 15,210,614 Oregon State EDR, Georgia Pacific Corp. Project, Series CLVII, 6.35%, 8/01/25 ................... 7,910,000 7,955,403 Oregon State Facilities Authority Revenue, Senior College in Student Housing Project, Series A, XLCA Insured, 5.00%, 7/01/35 .................................................................. 3,660,000 3,861,483 Oregon State GO, Board of Higher Education, Baccalaureate, Series A, 5.00%, 8/01/27 ........................... 6,000,000 6,223,680 Board of Higher Education, Series A, Pre-Refunded, 5.65%, 8/01/27 ............................ 4,440,000 4,740,366 Board of Higher Education, Series C, Pre-Refunded, 5.65%, 8/01/27 ............................ 1,460,000 1,558,769 Elderly and Disabled Housing Authority, Series A, 6.00%, 8/01/15 ............................. 910,000 930,548 Elderly and Disabled Housing Authority, Series A, 6.00%, 8/01/21 ............................. 455,000 465,074 Elderly and Disabled Housing Authority, Series A, 5.375%, 8/01/28 ............................ 1,435,000 1,460,270 Elderly and Disabled Housing Authority, Series B, 6.10%, 8/01/17 ............................. 1,410,000 1,439,004 Elderly and Disabled Housing Authority, Series B, 6.25%, 8/01/23 ............................. 2,015,000 2,041,437 Elderly and Disabled Housing Authority, Series C, 6.50%, 8/01/22 ............................. 335,000 336,816 State Board of Higher Education, Refunding, Series A, 5.00%, 8/01/31 ......................... 2,000,000 2,087,060 State Board of Higher Education, Refunding, Series E, 5.00%, 8/01/29 ......................... 7,745,000 8,235,956 State Board of Higher Education, Series A, 5.00%, 8/01/35 .................................... 6,000,000 6,383,160 State Board of Higher Education, Series A, Pre-Refunded, 5.60%, 8/01/25 ...................... 8,000,000 8,874,960 State Board of Higher Education, Series A, Pre-Refunded, 5.50%, 8/01/29 ...................... 2,000,000 2,210,980 Veteran's Welfare, Series 75, 5.85%, 10/01/15 ................................................ 275,000 281,633 Veteran's Welfare, Series 75, 5.875%, 10/01/18 ............................................... 145,000 148,418 Veteran's Welfare, Series 75, 6.00%, 4/01/27 ................................................. 455,000 465,633 Veteran's Welfare, Series 76-A, 6.05%, 10/01/28 .............................................. 890,000 902,362 Veteran's Welfare, Series 77, 5.30%, 10/01/29 ................................................ 2,305,000 2,361,887 Veteran's Welfare, Series A, 5.70%, 10/01/32 ................................................. 3,140,000 3,244,719 Oregon State Health Housing Educational and Cultural Facilities Authority Revenue, Peacehealth, AMBAC Insured, 5.00%, 11/15/26 .................................................. 5,500,000 5,818,505 Reed College Project, Series A, 5.75%, 7/01/32 ............................................... 10,735,000 11,839,309 Oregon State Housing and Community Services Department MFHR, Series A, 6.15%, 7/01/21 ..................................................................... 910,000 942,733 Series B, 6.00%, 7/01/31 ..................................................................... 5,000,000 5,229,000 Oregon State Housing and Community Services Department Mortgage Revenue, SFM Program, Series A, 6.35%, 7/01/14 ..................................................................... 810,000 819,096 Series A, 6.40%, 7/01/18 ..................................................................... 405,000 409,491
Quarterly Statements of Investments | 165 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN OREGON TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) OREGON (CONT.) Oregon State Housing and Community Services Department Mortgage Revenue, SFM Program, (cont.) Series A, 6.45%, 7/01/26 ..................................................................... $ 965,000 $ 985,062 Series C, 6.20%, 7/01/15 ..................................................................... 730,000 745,191 Series C, 6.40%, 7/01/26 ..................................................................... 425,000 433,832 Series D, 6.80%, 7/01/27 ..................................................................... 795,000 819,383 Series H, FHA Insured, 5.75%, 7/01/30 ........................................................ 2,425,000 2,500,490 Polk Marion and Benton Counties School District No. 13J GO, FSA Insured, Pre-Refunded, 5.80%, 6/15/20 ................................................................................ 1,985,000 2,232,966 Port Astoria PCR, James River Project, Refunding, 6.55%, 2/01/15 ................................ 945,000 947,580 Port of Portland International Airport Revenue, Portland International Airport, Refunding, Series D, FGIC Insured, 5.00%, 7/01/23 ............................................ 3,000,000 3,125,010 Series A, AMBAC Insured, 5.50%, 7/01/24 ...................................................... 22,000,000 23,998,040 Series 7B, MBIA Insured, Pre-Refunded, 7.10%, 7/01/21 ........................................ 2,800,000 3,385,760 Series 12C, FGIC Insured, 5.00%, 7/01/18 ..................................................... 1,500,000 1,591,380 Port St. Helens PCR, Boise Cascade Corp. Project, Refunding, 5.65%, 12/01/27 ...................................... 4,750,000 4,776,125 Portland General Electric Co. Project, Series A, 5.25%, 8/01/14 .............................. 3,600,000 3,606,192 Portland Community College District GO, Series B, 5.00%, 6/01/20 ...................................................................................... 7,185,000 7,635,428 6/01/21 ...................................................................................... 6,290,000 6,663,563 Portland GO, Central City Streetcar Project, Series A, 4.75%, 4/01/21 ..................................... 3,600,000 3,694,752 Limited Tax, Series A, 5.00%, 4/01/18 ........................................................ 1,000,000 1,045,220 Limited Tax, Series A, 5.00%, 6/01/24 ........................................................ 10,000,000 10,604,900 Limited Tax, Series A, MBIA Insured, 5.125%, 6/01/30 ......................................... 6,315,000 6,719,286 Portland Housing Authority MFR, Berry Ridge Project, 6.30%, 5/01/29 .......................................................... 1,500,000 1,562,520 Housing-Lovejoy Station Apartments Project, MBIA Insured, 6.00%, 7/01/33 ..................... 2,000,000 2,114,680 Portland Hydroelectric Power Revenue, Bull Run Project, Series C, 7.00%, 10/01/16 ............... 635,000 645,097 Portland MFR, Civic Stadium Housing Project, Series A, 6.00%, 3/01/17 ...................................... 1,000,000 1,030,000 Housing Garden Park Estates Project, Series A, GNMA Secured, 5.875%, 3/20/37 ................. 3,175,000 3,308,096 Portland River District Urban Renewal and Redevelopment Revenue, Series A, AMBAC Insured, 5.00%, 6/15/21 ................................................................................ 3,000,000 3,221,400 Portland Sewer System Revenue, First Lien, Series A, FSA Insured, 5.00%, 10/01/24 ........................................... 6,235,000 6,731,244 Refunding, Series A, FSA Insured, 5.00%, 6/01/23 ............................................. 2,500,000 2,682,000 Portland Urban Renewal and Redevelopment Revenue, Interstate Corridor, Series A, FGIC Insured, 5.00%, 6/15/24 ...................................................................................... 1,295,000 1,398,924 6/15/25 ...................................................................................... 2,385,000 2,570,267 Portland Urban Renewal and Redevelopment Tax Allocation, Convention Center, Series A, AMBAC Insured, 5.50%, 6/15/20 ................................................................. 3,000,000 3,302,760 Redmond GO, Series C, MBIA Insured, 5.00%, 6/01/33 .............................................. 1,260,000 1,328,720 Salem-Keizer School District No. 24J GO, Pre-Refunded, 5.00%, 6/01/19 ........................... 9,500,000 10,199,105 Southwestern Community College District GO, MBIA Insured, 5.00%, 6/01/28 ........................ 1,100,000 1,170,444 Sunrise Water Authority Water Revenue, sub. lien, XLCA Insured, 5.00%, 3/01/25 .................. 1,660,000 1,765,194
166 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN OREGON TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) OREGON (CONT.) Tri-County Metropolitan Transportation District Revenue, Limited Obligation, Airport Light Rail, Series 1, 5.65%, 6/01/29 ...................................................................... $14,080,000 $ 14,921,562 Washington and Clackamas Counties School District No. 23 GO, MBIA Insured, 5.00%, 6/15/22 ....................................................................................... 7,000,000 7,465,150 Washington County Clean Water Services Sewer Revenue, senior lien, FGIC Insured, 5.00%, 10/01/19 ...................................................................................... 3,905,000 4,172,914 Washington County GO, 5.00%, 6/01/26 ............................................................ 10,000,000 10,473,900 Washington County School District No. 48J Beaverton GO, 5.00%, 6/01/22 .......................... 4,155,000 4,421,859 Washington County School District No. 88J Sherwood GO, FSA Insured, Pre-Refunded, 6.10%, 6/01/12 ....................................................................................... 190,000 190,447 Washington County Unified Sewer Agency Revenue, senior lien, Refunding, Series A, 6.20%, 10/01/10 ...................................................................................... 470,000 472,664 Washington Multnomah and Yamhill Counties School District No. 1J Hillsboro GO, FSA Insured, 5.60%, 4/01/20 ................................................................................ 1,000,000 1,097,970 ------------ 522,758,075 ------------ U.S. TERRITORIES 17.6% Children's Trust Fund Puerto Rico Tobacco Settlement Revenue, Asset-Backed Bonds, Refunding, 5.625%, 5/15/43 .................................................................... 10,000,000 10,071,100 Puerto Rico Commonwealth Aqueduct and Sewer Authority Revenue, Series A, FSA Insured, Pre-Refunded, 9.00%, 7/01/09 .................................................................. 40,000 40,197 Puerto Rico Commonwealth GO, Public Improvement, Series A, 5.00%, 7/01/29 ............................................................................... 10,000,000 10,482,900 5.125%, 7/01/31 .............................................................................. 9,885,000 10,327,551 Pre-Refunded, 5.00%, 7/01/27 ................................................................. 10,000,000 11,098,300 Pre-Refunded, 5.125%, 7/01/31 ................................................................ 5,115,000 5,678,673 Puerto Rico Commonwealth Highway and Transportation Authority Highway Revenue, Series Y, 5.50%, 7/01/36 ............................................................................... 13,000,000 14,557,790 Pre-Refunded, 5.50%, 7/01/26 ................................................................. 4,275,000 4,459,766 Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Series D, 5.375%, 7/01/36 ...................................................................... 10,000,000 10,782,500 Puerto Rico Electric Power Authority Power Revenue, Series II, 5.25%, 7/01/31 .................................................................... 12,000,000 12,876,480 Series II, FSA Insured, 5.125%, 7/01/26 ...................................................... 9,150,000 9,894,993 Series X, Pre-Refunded, 6.00%, 7/01/15 ....................................................... 2,500,000 2,556,675 Puerto Rico HFC Revenue, Sixth Portfolio, Section 8, FHA Insured, Pre-Refunded, 7.75%, 12/01/26 ....................................................................................... 395,000 405,128 Puerto Rico Public Finance Corp. Revenue, Commonwealth Appropriation, Series E, 5.50%, 8/01/29 ............................................................................... 1,285,000 1,407,666 Pre-Refunded, 5.50%, 8/01/29 ................................................................. 3,715,000 4,197,616 Virgin Islands PFAR, senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/15 ..................................................................................... 1,635,000 1,750,300 10/01/18 ..................................................................................... 2,400,000 2,554,440 Virgin Islands Water and Power Authority Electric System Revenue, Refunding, 5.30%, 7/01/18 ...................................................................................... 2,500,000 2,548,875 7/01/21 ...................................................................................... 1,400,000 1,424,850 ------------ 117,115,800 ------------ TOTAL BONDS (COST $596,376,496) ................................................................. 639,873,875 ------------
Quarterly Statements of Investments | 167 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN OREGON TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) ZERO COUPON BONDS 0.9% OREGON 0.9% Oregon Health Sciences University Revenue, Capital Appreciation, Refunding, Series A, MBIA Insured, 7/01/21 ......................................................................... $11,480,000 $ 5,586,857 Portland GO, Limited Tax, Series B, 6/01/21 ..................................................... 1,000,000 494,630 ------------ TOTAL ZERO COUPON BONDS (COST $5,184,990) ....................................................... 6,081,487 ------------ TOTAL LONG TERM INVESTMENTS (COST $601,561,486) ................................................. 645,955,362 ------------ SHORT TERM INVESTMENTS 1.2% BONDS 1.2% OREGON 0.9% (a)Oregon Health Sciences University Revenue, Special Oshu Medical Group Project Series A, Weekly VRDN and Put, 2.96%, 7/01/33 ........................................................... 5,400,000 5,400,000 (a)Oregon State Health Housing Educational and Cultural Facilities Authority Revenue, Guide Dogs for the Blind, Series A, Weekly VRDN and Put, 2.95%, 7/01/25 ............................. 900,000 900,000 ------------ 6,300,000 ------------ U.S. TERRITORIES 0.3% (a)Puerto Rico Commonwealth Government Development Bank Revenue, Refunding, MBIA Insured, Weekly VRDN and Put, 2.85%, 12/01/15 .......................................................... 700,000 700,000 (a)Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Series A, AMBAC Insured, Weekly VRDN and Put, 2.90%, 7/01/28 .................................. 1,100,000 1,100,000 ------------ 1,800,000 ------------ TOTAL SHORT TERM INVESTMENTS (COST $8,100,000) .................................................. 8,100,000 ------------ TOTAL INVESTMENTS (COST $609,661,486) 98.4% ..................................................... 654,055,362 OTHER ASSETS, LESS LIABILITIES 1.6% ............................................................. 10,656,955 ------------ NET ASSETS 100.0% ............................................................................... $664,712,317 ============
See Selected Portfolio Abbreviations on page 180. (a) Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. 168 | See Notes to Statements of Investments. | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN PENNSYLVANIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 98.3% BONDS 97.6% PENNSYLVANIA 90.6% Allegheny County Airport Authority Airport Revenue, Pittsburgh International Airport, Refunding, FGIC Insured, 5.75%, 1/01/18 .................................................................. $ 1,000,000 $ 1,070,450 Allegheny County Airport Revenue, Pittsburgh International Airport, Refunding, Series B, MBIA Insured, 5.00%, 1/01/19 .................................................................. 6,000,000 6,198,000 Allegheny County COP, AMBAC Insured, 5.00%, 12/01/28 ............................................ 4,000,000 4,240,600 Allegheny County GO, MBIA Insured, Pre-Refunded, 5.00%, 11/01/27 ................................ 1,000,000 1,107,460 Allegheny County Higher Education Building Authority Revenue, Duquesne University Project, AMBAC Insured, 5.00%, 3/01/21 ................................................................. 1,000,000 1,028,260 Allegheny County Hospital Development Authority Revenue, Allegheny General Hospital Project, Series A, MBIA Insured, Pre-Refunded, 6.25%, 9/01/20 ..................................................................................... 10,000,000 10,733,600 Allegheny Hospital, South Hills Health System, Series A, MBIA Insured, 5.875%, 5/01/26 ..................................................................................... 1,700,000 1,775,378 Health Center, Canterbury Place, AMBAC Insured, 5.375%, 12/01/21 ............................. 4,500,000 4,775,805 Health System, Series A, MBIA Insured, 6.50%, 11/15/30 ....................................... 10,000,000 11,740,400 University of Pittsburgh Health Center, Refunding, Series A, MBIA Insured, 5.625%, 4/01/27 ..................................................................................... 10,450,000 11,081,598 Allegheny County IDAR, Environmental Improvement, USX Corp., Refunding, 6.10%, 1/15/18 .............................. 2,000,000 2,130,900 Environmental Improvement, USX Corp., Refunding, 5.50%, 12/01/29 ............................. 10,000,000 10,508,200 Environmental Improvement, USX Corp., Refunding, 5.60%, 9/01/30 .............................. 7,530,000 7,884,286 Series A, MBIA Insured, 5.00%, 11/01/29 ...................................................... 5,000,000 5,255,550 Series B, MBIA Insured, 5.00%, 11/01/29 ...................................................... 9,000,000 9,501,120 Allegheny County Port Authority Special Revenue, Transportation, FGIC Insured, 5.00%, 3/01/25 ................................................................. 13,250,000 13,985,640 FGIC Insured, 5.00%, 3/01/29 ................................................................. 16,500,000 17,277,150 MBIA Insured, Pre-Refunded, 6.125%, 3/01/29 .................................................. 15,000,000 16,793,250 Allegheny County Residential Finance Authority Mortgage Revenue, Ladies Grand Army Republic Health Facilities Project, Series G, FHA Insured, 6.35%, 10/01/36 .................................................................................... 1,775,000 1,797,702 SFM, Series DD-1, GNMA Secured, 5.35%, 11/01/19 .............................................. 295,000 303,204 SFM, Series DD-2, GNMA Secured, 5.40%, 11/01/29 .............................................. 1,500,000 1,535,205 SFM, Series FF-2, GNMA Secured, 6.00%, 11/01/31 .............................................. 3,055,000 3,176,100 SFM, Series II-2, GNMA Secured, 5.90%, 11/01/32 .............................................. 1,100,000 1,152,206 SFM, Series T, GNMA Secured, 6.95%, 5/01/17 .................................................. 515,000 516,004 Allegheny Valley School District GO, MBIA Insured, 5.00%, 11/01/28 .............................. 1,550,000 1,652,966 Armstrong County GO, MBIA Insured, 5.40%, 6/01/31 ............................................... 2,500,000 2,684,900 Beary Valley Joint Authority Water Revenue, FSA Insured, 5.00%, 5/01/29 ......................... 1,000,000 1,051,280 Bensalem Township GO, Refunding, FGIC Insured, 5.75%, 12/01/16 .................................. 3,000,000 3,061,560 Berwick Area School District GO, Series A, FGIC Insured, 5.00%, 10/01/25 ........................ 1,000,000 1,052,510 Bucks County IDAR, AMBAC Insured, 5.125%, 9/15/31 ............................................... 3,675,000 3,867,019 Butler Area School District GO, FSA Insured, Pre-Refunded, 5.00%, 4/01/31 ....................... 4,000,000 4,461,760 Cambria County IDA, PCR, Pennsylvania Electric Co. Project, Refunding, Series A, MBIA Insured, 5.80%, 11/01/20 ................................................................. 5,000,000 5,159,950 Carbon County IDAR, Panther Creek Partner Project, Refunding, 6.65%, 5/01/10 .................... 3,400,000 3,667,852 Chartiers Valley Industrial and Commercial Development Authority First Mortgage Revenue, Asbury Place Project, Pre-Refunded, 6.50%, 2/01/36 ............................................ 4,025,000 4,190,105
Quarterly Statements of Investments | 169 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN PENNSYLVANIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) PENNSYLVANIA (CONT.) Chichester School District GO, FSA Insured, 5.00%, 3/15/26 ...................................... $ 1,830,000 $ 1,940,312 Clarion County Hospital Authority Revenue, Clarion Hospital Project, Refunding, 5.40%, 7/01/07 ............................................................................... 1,000,000 1,000,540 5.55%, 7/01/09 ............................................................................... 2,365,000 2,379,426 5.60%, 7/01/10 ............................................................................... 600,000 601,920 5.75%, 7/01/12 ............................................................................... 1,795,000 1,807,206 5.75%, 7/01/17 ............................................................................... 700,000 692,769 5.625%, 7/01/21 .............................................................................. 1,500,000 1,433,475 Council Rock School District GO, Series A, MBIA Insured, 5.00%, 11/15/22 ........................ 5,180,000 5,471,841 Cumberland County Municipal Authority College Revenue, Dickinson College, Series A, AMBAC Insured, 5.50%, 11/01/30 ................................................................ 1,200,000 1,311,768 Dauphin County General Authority Health System Revenue, Pinnacle Health System Project, Refunding, MBIA Insured, 5.50%, 5/15/17 ....................................................... 2,000,000 2,102,720 Dauphin County General Authority Hospital Revenue, Hapsco-Western Hospital Project, Refunding, Series A, MBIA Insured, 6.50%, 7/01/12 ....................................................... 4,500,000 4,514,805 Series B, MBIA Insured, ETM, 6.25%, 7/01/16 .................................................. 5,000,000 5,877,000 Dauphin County General Authority Revenue, Mandatory Put 12/01/05, Sub Series 3, AMBAC Insured, 4.75%, 6/01/26 ................................................................. 1,000,000 1,009,850 Deer Lakes School District GO, Series A, FSA Insured, Pre-Refunded, 5.00%, 1/15/23 .............. 1,000,000 1,052,520 Delaware County Authority College Revenue, Cabrini College, Radian Insured, 5.875%, 7/01/29 ............................................. 6,385,000 6,948,795 Eastern College, Series C, 5.625%, 10/01/28 .................................................. 2,210,000 2,244,100 Haverford College, 5.75%, 11/15/29 ........................................................... 3,500,000 3,907,330 Haverford College, 6.00%, 11/15/30 ........................................................... 1,750,000 1,990,083 Delaware County Authority Revenue, Dunwoody Village Project, 6.25%, 4/01/30 ..................................................... 1,800,000 1,907,172 Health Facilities, Mercy Health Corp. Project, ETM, 6.00%, 12/15/26 .......................... 10,800,000 11,316,240 Delaware County IDAR, Philadelphia Suburban Water Co. Project, FGIC Insured, 6.00%, 6/01/29 ....................................................................................... 2,000,000 2,214,120 Delaware County University Authority Revenue, Villanova University, Series A, MBIA Insured, 5.00%, 12/01/28 ............................................................................... 3,000,000 3,157,170 Delaware Valley Regional Finance Authority Local Government Revenue, Series B, AMBAC Insured, 5.60%, 7/01/17 ................................................................. 5,000,000 5,760,200 Erie County IDA Environmental Improvement Revenue, International Paper Co. Project, Refunding, Series B, 6.00%, 9/01/16 ........................................................... 600,000 650,130 Erie GO, Series E, FGIC Insured, 5.25%, 11/15/25 ................................................ 5,000,000 5,366,800 Erie School District GO, AMBAC Insured, Pre-Refunded, 5.80%, 9/01/29 ............................ 3,000,000 3,389,130 Greater Johnstown School District GO, Series C, MBIA Insured, 5.125%, 8/01/25 ................... 3,625,000 3,856,855 Hazleton Area School District GO, Series B, FGIC Insured, 5.00%, 3/01/23 ........................ 4,455,000 4,583,438 Hazleton Health Services Authority Hospital Revenue, Hazleton General Hospital, 5.50%, 7/01/27 ....................................................................................... 1,500,000 1,336,605 Indiana County IDAR, Indiana University of Pennsylvania, Refunding, AMBAC Insured, 5.00%, 11/01/29 ...................................................................................... 1,250,000 1,330,038 Johnstown RDA Sewer Revenue, Series A, FSA Insured, 5.00%, 8/15/34 .............................. 1,825,000 1,932,493 Lancaster County Hospital Authority Revenue, Health Center, Willow Valley Retirement Project, 5.875%, 6/01/21 ............................................................................... 1,000,000 1,066,840
170 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN PENNSYLVANIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) PENNSYLVANIA (CONT.) Latrobe IDAR, Saint Vincent College Project, 5.70%, 5/01/31 ..................................... $ 1,500,000 $ 1,599,960 Lehigh County General Purpose Authority Revenues, Good Shepherd Rehabilitation Hospital, Refunding, AMBAC Insured, 5.25%, 11/15/27 ............. 5,000,000 5,208,900 Lehigh Valley Hospital, Health Network, Series A, MBIA Insured, 5.00%, 7/01/28 ............... 4,000,000 4,174,880 Lehigh Valley Hospital, Health Network, Series B, FSA Insured, 5.25%, 7/01/19 ................ 2,750,000 2,991,065 Lehigh Valley Hospital, Refunding, Series A, MBIA Insured, 5.875%, 7/01/15 ................... 1,000,000 1,022,150 Lehigh County IDA, PCR, Pennsylvania Power and Light Co. Project, Refunding, Series A, MBIA Insured, Pre-Refunded, 6.15%, 8/01/29 .................................................... 5,550,000 5,689,971 Lower Merion Township School District GO, Refunding, 4.375%, 5/15/18 ............................ 1,000,000 1,030,010 Luzerne County GO, Series D, FGIC Insured, 5.00%, 11/15/26 ...................................... 2,000,000 2,088,060 Lycoming County Authority College Revenue, Pennsylvania College of Technology, AMBAC Insured, 5.25%, 5/01/32 ................................................................ 5,030,000 5,349,958 Refunding, AMBAC Insured, 5.35%, 7/01/26 ..................................................... 2,400,000 2,595,336 Mercer County GO, FGIC Insured, 5.00%, 10/01/31 ................................................. 2,000,000 2,085,720 Mercer County IDA Water Facilities Revenue, MBIA Insured, 6.00%, 7/01/30 ........................ 5,000,000 5,579,200 Montgomery County GO, 5.00%, 9/15/22 ............................................................ 3,335,000 3,547,039 Montgomery County Higher Education and Health Authority Revenue, Faulkeways at Gwynedd Project, 6.75%, 11/15/24 ..................................................................................... 400,000 428,668 11/15/30 ..................................................................................... 1,000,000 1,070,850 Montgomery County IDA Retirement Community Revenue, Adult Community Total Services Retirement-Life Communities, 5.25%, 11/15/28 .................. 5,000,000 5,087,450 Adult Community Total Services, Refunding, Series A, 5.875%, 11/15/22 ........................ 4,850,000 5,001,369 Adult Community Total Services, Series B, 5.75%, 11/15/17 .................................... 4,000,000 4,196,320 Mount Pleasant Business District Authority Hospital Revenue, Frick Hospital, Pre-Refunded, 5.70%, 12/01/13 .............................................................................. 1,205,000 1,305,919 5.75%, 12/01/17 .............................................................................. 500,000 542,475 5.75%, 12/01/27 .............................................................................. 1,600,000 1,735,920 Muhlenberg School District GO, Series AA, FGIC Insured, 5.00%, 9/01/22 ............................................................................... 1,390,000 1,476,583 Pre-Refunded, 6.00%, 9/01/23 ................................................................. 4,000,000 4,557,280 New Wilmington Municipal Authority College Revenue, Westminster College, 5.35%, 3/01/28 ....................................................................................... 2,250,000 2,287,643 Norristown Area School District GO, FGIC Insured, 5.00%, 9/01/27 ................................ 5,000,000 5,292,300 Northampton Boro Municipal Authority Water Revenue, MBIA Insured, 5.00%, 5/15/34 ................ 2,400,000 2,534,616 Northampton County IDAR, Pollution Control, Metropolitan Edison Co., Refunding, Series A, MBIA Insured, 6.10%, 7/15/21 .................................................................. 6,100,000 6,244,692 Norwin School District GO, FGIC Insured, Pre-Refunded, 6.00%, 4/01/30 ................................................... 5,000,000 5,616,650 Series A, MBIA Insured, 5.00%, 4/01/30 ....................................................... 1,000,000 1,040,390 Series B, MBIA Insured, 5.00%, 4/01/31 ....................................................... 6,390,000 6,608,091 Pennsbury School District GO, FGIC Insured, 5.00%, 1/15/22 ...................................... 2,835,000 3,008,956 Pennsylvania Convention Center Authority Revenue, Refunding, Series A, 6.60%, 9/01/09 ........... 5,000,000 5,102,750 Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue, MacMillan LP Project, Pre-Refunded, 7.60%, 12/01/20 ..................................................... 3,000,000 3,129,390 Pennsylvania Economic Development Financing Authority Revenue, Lincoln University, Series A, FGIC Insured, 5.00%, 6/01/33 .................................................................. 3,325,000 3,512,331
Quarterly Statements of Investments | 171 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN PENNSYLVANIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) PENNSYLVANIA (CONT.) Pennsylvania EDA Financing Resources Recovery Revenue, Colver Project, Series D, 7.125%, 12/01/15 ...................................................................................... $ 5,000,000 $ 5,202,500 Pennsylvania HFAR, SFM, Refunding, Series 72A, 5.25%, 4/01/21 ................................... 7,000,000 7,126,280 Pennsylvania Intergovernmental Cooperative Authority Special Tax Revenue, Philadelphia Funding Program, FGIC Insured, Pre-Refunded, 7.00%, 6/15/14 ................................... 6,000,000 6,008,940 Pennsylvania State Higher Educational Facilities Authority College and University Revenues, Allegheny College, Series B, 6.125%, 11/01/13 ................................................ 90,000 90,500 Drexel University, MBIA Insured, 5.75%, 5/01/22 .............................................. 3,095,000 3,310,319 Drexel University, MBIA Insured, Pre-Refunded, 5.75%, 5/01/22 ................................ 905,000 970,603 Marywood University Project, MBIA Insured, Pre-Refunded, 5.65%, 6/01/25 ...................... 2,500,000 2,796,550 Pennsylvania State Higher Educational Facilities Authority Health Services Revenue, Allegheny Delaware Valley Obligation Group, Refunding, Series A, MBIA Insured, 5.875%, 11/15/21 .................................................................................... 17,000,000 17,844,560 University of Pennsylvania Health Services, Series A, Pre-Refunded, 5.75%, 1/01/22 ........... 10,000,000 10,267,200 Pennsylvania State Higher Educational Facilities Authority Revenue, Bryn Mawr College, AMBAC Insured, 5.125%, 12/01/29 ........................................... 1,500,000 1,595,985 Drexel University, Series A, 5.00%, 5/01/20 .................................................. 1,485,000 1,570,595 Drexel University, Series A, 5.20%, 5/01/29 .................................................. 750,000 799,283 Philadelphia College of Textiles and Science, 6.75%, 4/01/20 ................................. 3,040,000 3,112,443 State System of Higher Education, Series N, MBIA Insured, Pre-Refunded, 5.80%, 6/15/24 ..................................................................................... 4,000,000 4,122,160 State System of Higher Education, Series R, FSA Insured, 5.00%, 6/15/24 ...................... 3,140,000 3,321,743 Temple University, 7.40%, 10/01/10 ........................................................... 30,000 30,144 Temple University, First Series, MBIA Insured, 5.00%, 7/15/31 ................................ 3,000,000 3,142,410 University Sciences Philadelphia, Series A, XLCA Insured, 5.00%, 11/01/36 .................... 8,315,000 8,801,012 Widener University, 5.00%, 7/15/31 ........................................................... 500,000 516,010 Pennsylvania State Public School Building Authority Revenue, Career Institute of Technology, FGIC Insured, 5.00%, 11/15/28 ................................ 1,000,000 1,065,330 Central Montgomery County Area, FGIC Insured, 5.00%, 5/15/24 ................................. 2,500,000 2,682,575 Lehigh Career and Technical Institution, MBIA Insured, 5.00%, 10/01/31 ....................... 1,000,000 1,042,860 Pennsylvania State Turnpike Commission Oil Franchise Tax Revenue, Series B, MBIA Insured, 5.00%, 12/01/24 ..................................................................................... 1,655,000 1,770,734 12/01/31 ..................................................................................... 5,000,000 5,276,000 Pennsylvania State Turnpike Commission Revenue, AMBAC Insured, 5.00%, 7/15/28 ...................................................................................... 10,000,000 10,537,900 7/15/31 ...................................................................................... 13,820,000 14,502,155 Pennsylvania State Turnpike Commission Turnpike Revenue, Series A, AMBAC Insured, 5.00%, 12/01/34 ..................................................... 5,000,000 5,290,450 Series R, AMBAC Insured, 5.00%, 12/01/26 ..................................................... 2,000,000 2,118,260 Series R, AMBAC Insured, 5.00%, 12/01/30 ..................................................... 11,125,000 11,704,724 Pennsylvania State University Revenue, 5.00%, 9/01/35 ........................................... 1,000,000 1,064,270 Philadelphia Airport Revenue, Philadelphia Airport System, Series A, AMBAC Insured, 6.10%, 6/15/25 ....................................................................................... 5,000,000 5,118,200 Philadelphia Authority For IDR, Series B, AMBAC Insured, 5.25%, 7/01/31 ......................... 2,000,000 2,130,400 Philadelphia Gas Works Revenue, 12th Series B, MBIA Insured, ETM, 7.00%, 5/15/20 ................ 1,000,000 1,242,650
172 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN PENNSYLVANIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) PENNSYLVANIA (CONT.) Philadelphia Hospitals and Higher Educational Facilities Authority Revenue, Frankford Hospital, Series A, ETM, 6.00%, 6/01/14 ............................................ $ 2,305,000 $ 2,348,403 Temple University Hospital, 5.875%, 11/15/23 ................................................. 5,000,000 5,061,150 Philadelphia Housing Authority Capital Fund Program Revenue, Series A, FSA Insured, 5.00%, 12/01/21 ...................................................................................... 5,000,000 5,381,750 Philadelphia IDA Lease Revenue, Series B, FSA Insured, 5.125%, 10/01/26 ......................... 12,000,000 12,799,200 Philadelphia Parking Authority Parking Revenue, Airport, FSA Insured, 5.25%, 9/01/22 ...................................................................................... 3,250,000 3,467,230 9/01/29 ...................................................................................... 13,000,000 13,927,030 Philadelphia RDA Revenue, Neighborhood Transformation, Series C, FGIC Insured, 5.00%, 4/15/31 ....................................................................................... 10,830,000 11,433,773 Philadelphia School District GO, Series B, AMBAC Insured, Pre-Refunded, 5.375%, 4/01/19 ....................................... 1,000,000 1,044,980 Series C, MBIA Insured, Pre-Refunded, 5.75%, 3/01/29 ......................................... 8,000,000 8,920,800 Series D, FGIC Insured, 5.125%, 6/01/34 ...................................................... 5,000,000 5,355,100 Philadelphia Water and Wastewater Revenue, Series A, FGIC Insured, 5.00%, 11/01/31 ................................................................ 7,515,000 7,869,858 FSA Insured, 5.00%, 7/01/35 .................................................................. 4,500,000 4,785,570 Pittsburgh Public Parking Authority Parking Revenue, AMBAC Insured, 6.00%, 12/01/24 ............. 2,000,000 2,269,420 Pittsburgh Urban RDA Mortgage Revenue, Series C, GNMA Secured, 5.70%, 4/01/30 ....................................................... 1,310,000 1,342,174 Series D, 6.25%, 10/01/17 .................................................................... 1,695,000 1,747,172 Pittsburgh Urban RDA Tax Allocation, 6.10%, 5/01/19 ............................................. 1,000,000 1,102,300 Pittsburgh Water and Sewer System Authority Revenue, Refunding, FGIC Insured, ETM, 7.25%, 9/01/14 ....................................................................................... 1,250,000 1,478,075 Plum Boro School District GO, FGIC Insured, Pre-Refunded, 5.25%, 9/15/30 ........................ 8,870,000 9,913,201 Sayre Health Care Facilities Authority Revenue, Guthrie Health, Series A, 5.875%, 12/01/31 ...................................................................................... 2,500,000 2,675,475 Seneca Valley School District GO, MBIA Insured, 5.375%, 1/01/21 ................................. 2,000,000 2,185,400 South Fork Municipal Authority Hospital Revenue, Conemaugh Valley Memorial Hospital Project, Series A, MBIA Insured, 5.75%, 7/01/26 ........................................................ 10,000,000 10,474,200 Southcentral General Authority Revenue, Wellspan Health Obligated, Refunding, MBIA Insured, 5.25%, 5/15/31 ................................................................................ 10,000,000 10,546,800 Southeastern Pennsylvania Transportation Authority Special Revenue, FGIC Insured, 5.375%, 3/01/22 ....................................................................................... 3,000,000 3,171,210 Southern Lehigh School District GO, Series A, FGIC Insured, 5.00%, 9/01/25 ...................... 6,900,000 7,307,583 State Public School Building Authority College Revenue, Westmoreland County Community College, FGIC Insured, 5.25%, 10/15/22 ........................................................ 2,170,000 2,355,904 State Public School Building Authority School Revenue, Daniel Boone School District Project, MBIA Insured, 5.00%, 4/01/28 ........................... 10,000,000 10,569,400 Northwestern School District Project, Series E, FGIC Insured, 5.75%, 1/15/19 ................. 3,000,000 3,272,040 Philadelphia School District Project, FSA Insured, 5.00%, 6/01/33 ............................ 37,170,000 39,042,625 Susquehanna Area Regional Airport Authority Revenue, Series A, AMBAC Insured, 5.00%, 1/01/28 ....................................................................................... 2,000,000 2,068,740 Twin Valley School District GO, FSA Insured, 5.00%, 4/01/23 ..................................... 2,915,000 3,154,730 University of Pittsburgh Revenue, Higher Education, Refunding, Series B, MBIA Insured, 5.00%, 6/01/21 ................................................................................ 10,000,000 10,408,000
Quarterly Statements of Investments | 173 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN PENNSYLVANIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) PENNSYLVANIA (CONT.) Upper St. Clair Township School District GO, FSA Insured, 5.00%, 7/15/28 .................................................................. $ 1,000,000 $ 1,052,500 Pre-Refunded, 5.20%, 7/15/27 ................................................................. 5,000,000 5,239,550 Washington County Authority Revenue, Capital Projects and Equipment Program, Refunding, AMBAC Insured, 6.15%, 12/01/29 ................................................................ 2,200,000 2,435,488 Washington County GO, Series A, AMBAC Insured, 5.125%, 9/01/27 .................................. 5,000,000 5,324,550 West Allegheny School District GO, Refunding, Series D, FGIC Insured, 4.75%, 9/01/19 ...................................................................................... 2,000,000 2,097,440 9/01/20 ...................................................................................... 3,805,000 3,978,889 ------------ 757,098,008 ------------ U.S. TERRITORIES 7.0% Puerto Rico Commonwealth GO, Public Improvement, Series A, 5.00%, 7/01/29 ............................................................................... 4,000,000 4,193,160 5.00%, 7/01/33 ............................................................................... 30,000,000 31,315,200 Pre-Refunded, 5.00%, 7/01/27 ................................................................. 10,590,000 11,753,100 Puerto Rico PBA Revenue, Guaranteed, Government Facilities, Series I, 5.00%, 7/01/36 ............ 5,950,000 6,241,847 Virgin Islands PFAR, Gross Receipts Taxes Loan Note, Radian Insured, 5.00%, 10/01/33 ............ 5,000,000 5,250,650 ------------ 58,753,957 ------------ TOTAL BONDS (COST $762,629,001) ................................................................. 815,851,965 ------------ ZERO COUPON BONDS 0.7% PENNSYLVANIA 0.7% Pennsylvania HFAR, Future Income Growth Securities, SFM, Series 64, 4/01/30 ..................................... 3,880,000 3,298,543 SFM, Refunding, Series 63A, 4/01/30 .......................................................... 10,885,000 2,808,221 ------------ TOTAL ZERO COUPON BONDS (COST $6,094,276) ....................................................... 6,106,764 ------------ TOTAL LONG TERM INVESTMENTS (COST $768,723,277) ................................................. 821,958,729 ------------ SHORT TERM INVESTMENT (COST $2,900,000) 0.3% BOND 0.3% PENNSYLVANIA 0.3% (a)Lehigh County General Purpose Authority Revenues, St. Lukes Hospital Project, Daily VRDN and Put, 2.93%, 7/01/31 ........................................................................... 2,900,000 2,900,000 ------------ TOTAL INVESTMENTS (COST $771,623,277) 98.6% ..................................................... 824,858,729 OTHER ASSETS, LESS LIABILITIES 1.4% ............................................................. 11,402,683 ------------ NET ASSETS 100.0% ............................................................................... $836,261,412 ============
See Selected Portfolio Abbreviations on page 180. (a) Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. 174 | See Notes to Statements of Investments. | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN VIRGINIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 98.1% BONDS 98.1% VIRGINIA 77.0% Abingdon IDA Hospital Facilities Revenue, Johnston Memorial Hospital, Refunding, 5.375%, 7/01/28 ....................................................................................... $ 5,000,000 $ 5,194,150 Alexandria IDA Educational Facilities Revenue, Episcopal High School, Pre-Refunded, 5.875%, 1/01/29 ....................................................................................... 2,500,000 2,761,825 Arlington County GO, Public Improvements, 5.00%, 2/01/22 ........................................ 2,060,000 2,206,672 Bedford County IDA, IDR, Nekoosa Packaging Corp. Project, Refunding, 5.60%, 12/01/25 .............................................................................. 2,650,000 2,672,445 6.30%, 12/01/25 .............................................................................. 2,000,000 2,083,480 Series A, 6.55%, 12/01/25 .................................................................... 5,000,000 5,257,950 Bristol Utility System Revenue, Refunding, ETM, 5.00%, 7/15/21 .................................. 1,245,000 1,356,564 Caroline County IDA Lease Revenue, AMBAC Insured, 5.125%, 6/15/34 ............................... 1,000,000 1,069,700 Chesapeake Toll Road Revenue, Expressway, Series A, 5.625%, 7/15/19 ...................................................................................... 3,250,000 3,508,212 7/15/32 ...................................................................................... 8,000,000 8,475,200 Chesapeake IDA, 6.00%, 6/01/12 .................................................................. 3,440,000 3,474,400 Dinwiddie County IDA Lease Revenue, Refunding, Series B, MBIA Insured, 5.00%, 2/15/30 ........... 1,410,000 1,495,629 Fairfax County EDA Revenue, National Wildlife Federation, MBIA Insured, 5.375%, 9/01/29 ....................................................................................... 8,000,000 8,658,720 Fairfax County IDAR, Health Care, Inova Health, Refunding, Series A, 5.00%, 8/15/18 ............................................ 2,100,000 2,182,950 Inova Health System Project, Pre-Refunded, 6.00%, 8/15/26 .................................... 5,000,000 5,285,200 Inova Health System Project, Refunding, Series A, 5.00%, 8/15/25 ............................. 5,000,000 5,123,400 Fairfax County Redevelopment and Housing Authority MFHR, Cedar Ridge Apartments, GNMA Secured, 6.30%, 12/20/27 ........................................ 4,700,000 4,797,713 Paul Spring Center, Refunding, Series A, FHA Insured, 5.90%, 6/15/17 ......................... 1,000,000 1,050,510 Paul Spring Center, Refunding, Series A, FHA Insured, 6.00%, 12/15/28 ........................ 1,000,000 1,048,310 Fairfax County Sewer Revenue, MBIA Insured, Pre-Refunded, 5.875%, 7/15/28 ....................... 5,000,000 5,265,800 Fairfax County Water Authority Water Revenue, Pre-Refunded, 5.00%, 4/01/27 ................................................................. 2,830,000 3,129,131 Refunding, 5.00%, 4/01/27 .................................................................... 11,420,000 12,081,789 Fredericksburg IDA Hospital Facilities Revenue, Medicorp Health System Obligation, Refunding, AMBAC Insured, 5.25%, 6/15/23 ................................................................. 10,000,000 10,545,100 Front Royal and Warren County IDA Lease Revenue, Series B, FSA Insured, 5.00%, 4/01/29 ........................................................ 7,115,000 7,520,057 School and Capital Improvement, Series B, FSA Insured, 5.00%, 4/01/35 ........................ 6,000,000 6,318,960 Gloucester County IDA Lease Revenue, Courthouse Project, MBIA Insured, 5.50%, 11/01/30 ...................................................................................... 1,715,000 1,879,125 Greater Richmond Convention Center Authority Hotel Tax Revenue, Convention Center Expansion Project, Pre-Refunded, 6.125%, 6/15/29 .............................................................................. 8,000,000 9,168,080 6.25%, 6/15/32 ............................................................................... 8,175,000 9,415,801 Hampton Convention Center Revenue, Refunding, AMBAC Insured, 5.25%, 1/15/23 ............................................................................... 3,000,000 3,256,290 5.125%, 1/15/28 .............................................................................. 2,605,000 2,779,822 5.00%, 1/15/35 ............................................................................... 2,000,000 2,100,620 Hampton Redevelopment and Housing Authority Senior Living Association Revenue, Refunding, Series A, GNMA Secured, 6.00%, 1/20/26 ......................................................... 1,060,000 1,106,417
Quarterly Statements of Investments | 175 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN VIRGINIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) VIRGINIA (CONT.) Hampton Roads Regional Jail Authority Jail Facilities Revenue, Series A, MBIA Insured, 5.00%, 7/01/28 ....................................................................................... $10,000,000 $ 10,260,300 Hanover County Water and Sewer System Revenue, MBIA Insured, 5.25%, 2/01/26 ..................... 4,175,000 4,316,032 Harrisonburg GO, FSA Insured, 5.75%, 12/01/29 ................................................... 1,000,000 1,129,720 Henrico County IDAR, Solid Waste, Browning-Ferris Industries, South Atlantic Inc., Series A, 5.875%, 3/01/17 ............................................................................... 1,000,000 966,590 Henry County IDA Hospital Revenue, Memorial Hospital of Martinsville and Henry, Pre-Refunded, 6.00%, 1/01/27 ................................................................................ 1,250,000 1,321,650 Isle Wight County IDA Environmental Improvement Revenue, International Paper Company Project, Series A, 6.60%, 5/01/24 ............................................................. 2,000,000 2,199,200 Isle Wight County IDAR, International Paper Co. Project, Series A, 5.85%, 1/01/18 ............... 4,155,000 4,481,334 King George County IDA Lease Revenue, FSA Insured, 5.00%, 3/01/32 ............................... 3,595,000 3,800,742 Leesburg Utilities System Revenue, Refunding, MBIA Insured, 5.125%, 7/01/22 ..................... 3,000,000 3,171,300 Loudoun County IDA Hospital Revenue, Loudoun Hospital Center, FSA Insured, 5.80%, 6/01/26 .................................................................. 3,000,000 3,062,160 Series A, Pre-Refunded, 6.10%, 6/01/32 ....................................................... 1,500,000 1,766,175 Loudoun County Sanitation Authority Water and Sewer Revenue, Refunding, FGIC Insured, 5.125%, 1/01/26 ..................................................... 3,795,000 3,969,608 Refunding, FGIC Insured, 5.125%, 1/01/30 ..................................................... 5,250,000 5,483,258 Series 96, FGIC Insured, 5.25%, 1/01/26 ...................................................... 6,500,000 6,865,235 Series 96, FGIC Insured, 5.25%, 1/01/30 ...................................................... 1,000,000 1,056,190 Lynchburg IDA Healthcare Facilities Revenue, Centra Health, Refunding, 5.20%, 1/01/28 ........... 8,000,000 8,517,600 Lynchburg Redevelopment and Housing Authority Revenue, Walden Pond III, Refunding, Series A, GNMA Secured, 6.20%, 7/20/27 ........................................................ 1,000,000 1,035,070 Middle River Regional Jail Authority Jail Facility Revenue, MBIA Insured, 5.00%, 5/15/28 ........ 1,000,000 1,069,530 Middlesex County IDA Lease Revenue, School Facilities Project, MBIA Insured, Pre-Refunded, 5.875%, 8/01/21 .............................................................................. 1,420,000 1,603,010 6.10%, 8/01/26 ............................................................................... 1,725,000 1,962,395 Montgomery County IDA Lease Revenue, Series B, AMBAC Insured, Pre-Refunded, 5.50%, 1/15/22 ....................................................................................... 1,000,000 1,129,570 Newport News IDA Mortgage Revenue, Mennowood Communities Inc., Series A, GNMA Secured, 6.25%, 8/01/36 ................................................................................ 2,960,000 3,094,473 Newport News Redevelopment and Housing Authority Revenue, Refunding, Series A, GNMA Secured, 5.85%, 12/20/30 ................................................................. 4,060,000 4,251,876 Norfolk Airport Authority Revenue, Series B, FGIC Insured, 5.125%, 7/01/31 ...................... 1,440,000 1,489,666 Norfolk GO, Capital Improvements, Refunding, Series B, FSA Insured, 5.00%, 7/01/22 .............. 1,720,000 1,834,896 Norfolk IDAR, Health Care, Bon Secours Health, Series B, MBIA Insured, 5.25%, 8/15/26 ........... 3,000,000 3,130,440 Norfolk Parking System Revenue, MBIA Insured, 5.55%, 2/01/27 .............................................................. 1,775,000 1,878,234 MBIA Insured, Pre-Refunded, 5.55%, 2/01/27 ................................................ 225,000 239,148 (a)Refunding, Series A, MBIA Insured, 5.00%, 2/01/27 ......................................... 1,940,000 2,068,447 Norfolk Water Revenue, MBIA Insured, 5.90%, 11/01/25 ............................................ 5,000,000 5,160,950 Orange County IDAR, Public Facility, Orange County Project, AMBAC Insured, 5.00%, 2/01/34 ....................................................................................... 1,000,000 1,054,190 Peninsula Ports Authority Hospital Facilities Revenue, Whittaker Memorial Hospital Project, Refunding, FHA Insured, 8.70%, 8/01/23 ........................................................ 50,000 59,439 Port Authority Commonwealth Port Fidelity Revenue, MBIA Insured, 4.75%, 7/01/28 ................. 1,500,000 1,543,545
176 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN VIRGINIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) VIRGINIA (CONT.) Powhatan Co. EDA Lease Revenue, Virginia Capital Projects, AMBAC Insured, 5.25%, 7/15/33 ....................................................................................... $ 1,000,000 $ 1,078,450 Prince William County IDA, MFHR, Remington Place Apartments Project, Series A-1, AMBAC Insured, 6.00%, 12/01/33 ................................................................ 2,340,000 2,469,589 Prince William County Service Authority Water and Sewer Systems Revenue, FGIC Insured, 5.50%, 7/01/29 ................................................................................ 5,000,000 5,518,550 Richmond GO, FGIC Insured, 5.00%, 7/15/19 ....................................................... 3,690,000 3,969,296 Richmond IDA Student Housing Revenue, University Real Estate Foundation, 5.55%, 1/01/31 ....................................................................................... 4,400,000 4,808,364 Richmond Public Facilities COP, 800 Megahertz Project, Series A, AMBAC Insured, 5.00%, 8/01/22 ....................................................................................... 2,000,000 2,118,240 Richmond Public Utility Revenue, FSA Insured, 5.00%, 1/15/35 .................................................................. 3,500,000 3,728,060 Refunding, FSA Insured, 5.00%, 1/15/33 ....................................................... 8,500,000 8,893,890 Spotsylvania County Water and Sewer System Revenue, MBIA Insured, 5.25%, 6/01/22 ............................................................................... 6,500,000 6,923,215 Pre-Refunded, 5.40%, 6/01/27 ................................................................. 6,800,000 7,262,400 University of Virginia Revenue, Series A, 5.00%, 6/01/33 ........................................ 14,000,000 14,831,880 Virginia Beach Water and Sewer Revenue, 5.25%, 8/01/21 .......................................... 1,865,000 2,000,492 Virginia College Building Authority Educational Facilities Revenue, 21st Century College Program, 5.00%, 2/01/21 ................................................. 1,000,000 1,061,800 Hampton University Project, 6.00%, 4/01/20 ................................................... 1,500,000 1,696,410 Regent University Project, MBIA Insured, 5.125%, 10/01/21 .................................... 5,000,000 5,372,150 Regent University Project, MBIA Insured, 5.125%, 10/01/31 .................................... 4,050,000 4,274,451 Washington and Lee University, 5.75%, 1/01/19 ................................................ 50,000 50,635 Virginia Commonwealth Transportation Board Transportation Revenue, Northern Virginia Transportation Program, Refunding, Series A, 5.00%, 5/15/27 ................ 8,920,000 9,417,647 U.S. Route 58 Corridor Development Program, Series B, 5.00%, 5/15/24 ......................... 2,000,000 2,113,600 U.S. Route 58 Corridor Development Project, Series B, 5.00%, 5/15/26 ......................... 10,000,000 10,535,500 Virginia State HDA Commonwealth Mortgage Revenue, Series J, Sub Series J-1, MBIA Insured, 5.20%, 7/01/19 ................................................................................ 2,415,000 2,453,833 Virginia State HDA, MFHR, Series C, 5.30%, 11/01/16 .................................................................... 1,000,000 1,052,920 Series H, 5.55%, 5/01/15 ..................................................................... 1,000,000 1,051,240 Virginia State HDA Rental Housing Revenue, Series J, 5.80%, 2/01/19 ..................................................................... 2,000,000 2,101,240 Series L, 5.75%, 2/01/15 ..................................................................... 1,000,000 1,064,060 Virginia State Public School Authority GO, School Financing, Series A, 5.00%, 8/01/20 ..................................................................... 3,000,000 3,218,040 Series A, 5.00%, 8/01/21 ..................................................................... 4,000,000 4,288,440 Series C, 5.00%, 8/01/22 ..................................................................... 2,000,000 2,136,260 Series C, 5.00%, 8/01/26 ..................................................................... 10,925,000 11,589,131 Virginia State Resources Authority Airports Revenue, Revolving Fund, Series A, 5.00%, 8/01/27 ....................................................................................... 3,000,000 3,118,110 Virginia State Resources Authority Infrastructure Revenue, Virginia Pooled Financing Program, Senior Series, 5.00%, 11/01/33 ................................................................ 5,000,000 5,309,900
Quarterly Statements of Investments | 177 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN VIRGINIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) VIRGINIA (CONT.) Virginia State Resources Authority Water and Sewer System Revenue, Pooled Loan Program, Mandatory Put 11/01/05, Series A, ETM, 7.35%, 11/01/16 .................. $ 45,000 $ 45,264 Pooled Loan Program, Mandatory Put 11/01/07, Series A, ETM, 7.45%, 11/01/16 .................. 10,000 10,268 Rapidan Service Authority, Refunding, 5.30%, 10/01/18 ........................................ 1,610,000 1,699,033 Tuckahoe Service District Project, 5.00%, 11/01/35 ........................................... 2,000,000 2,119,560 York County Sewer Revenue, 5.875%, 6/01/24 ...................................................................................... 500,000 555,375 6/01/29 ...................................................................................... 1,500,000 1,660,170 ------------ 378,839,458 ------------ U. S. TERRITORIES 21.1% Metropolitan Washington D.C. Airports Authority General Airport Revenue, Refunding, Series A, FGIC Insured, 5.00%, 10/01/27 ........................................... 5,000,000 5,160,150 Series A, 5.375%, 10/01/23 ................................................................... 1,635,000 1,720,592 Series A, Pre-Refunded, 5.375%, 10/01/23 ..................................................... 1,365,000 1,450,039 Series B, 5.75%, 10/01/20 .................................................................... 6,000,000 6,289,620 Metropolitan Washington D.C. Airport Authority System Revenue, Refunding, Series A, FGIC Insured, 5.00%, 10/01/25 ........................................... 1,000,000 1,044,230 Series B, FGIC Insured, 5.25%, 10/01/32 ...................................................... 6,655,000 7,056,962 Puerto Rico Commonwealth GO, Public Improvement, Series A, 5.00%, 7/01/29 ............................................................................... 8,000,000 8,386,320 5.00%, 7/01/33 ............................................................................... 2,000,000 2,087,680 FGIC Insured, Pre-Refunded, 5.00%, 7/01/32 ................................................... 15,000,000 16,647,450 Pre-Refunded, 5.125%, 7/01/31 ................................................................ 1,685,000 1,870,687 5.125%, 7/01/31 .............................................................................. 3,315,000 3,463,413 Puerto Rico Commonwealth Highway and Transportation Authority Highway Revenue, Series Y, 5.50%, 7/01/36 ............................................................................... 4,500,000 5,039,235 Pre-Refunded, 6.00%, 7/01/22 ................................................................. 2,000,000 2,098,080 Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Series D, 5.375%, 7/01/36 .................................................................... 5,000,000 5,391,250 Series D, 5.25%, 7/01/38 ..................................................................... 3,000,000 3,187,260 Series G, 5.00%, 7/01/33 ..................................................................... 5,000,000 5,222,650 Puerto Rico Commonwealth Infrastructure Financing Authority Special Revenue, Series A, AMBAC Insured, 5.00%, 7/01/28 ................................................................. 5,000,000 5,166,300 Puerto Rico Electric Power Authority Power Revenue, Refunding, Series Z, 5.25%, 7/01/21 .......................................................... 1,500,000 1,503,135 Series HH, FSA Insured, 5.25%, 7/01/29 ....................................................... 5,910,000 6,410,872 Series RR, XLCA Insured, 5.00%, 7/01/30 ...................................................... 1,000,000 1,072,800 Puerto Rico HFC Revenue, MFM, Portfolio A-I, 7.50%, 4/01/22 ........................................................... 950,000 953,002 Sixth Portfolio, Section 8, FHA Insured, Pre-Refunded, 7.75%, 12/01/26 ....................... 20,000 20,513 Puerto Rico Municipal Finance Agency Revenue, Series A, FSA Insured, 5.00%, 8/01/27 ............. 2,580,000 2,742,437 Puerto Rico PBA Revenue, Guaranteed, Government Facilities, Series D, 5.375%, 7/01/33 .............................................................................. 1,315,000 1,418,727 Pre-Refunded, 5.375%, 7/01/33 ................................................................ 3,685,000 4,139,287
178 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN VIRGINIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) U. S. TERRITORIES (CONT.) Puerto Rico Public Finance Corp. Revenue, Commonwealth Appropriation, Series E, Pre-Refunded, 5.70%, 8/01/25 .................................................................. $ 1,000,000 $ 1,115,670 Virgin Islands PFAR, senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/15 ..................................................................................... 1,500,000 1,605,780 10/01/18 ..................................................................................... 1,500,000 1,596,525 ------------ 103,860,666 ------------ TOTAL LONG TERM INVESTMENTS (COST $449,173,839) ................................................. 482,700,124 ------------ SHORT TERM INVESTMENT (COST $2,170,000) 0.4% BOND 0.4% VIRGINIA 0.4% (b)Roanoke IDA Hospital Revenue, Carilion Health System, Series C, Daily VRDN and Put, 2.93%, 7/01/27 ....................................................................................... 2,170,000 2,170,000 ------------ TOTAL INVESTMENTS (COST $451,343,839) 98.5% ..................................................... 484,870,124 OTHER ASSETS, LESS LIABILITIES 1.5% ............................................................. 7,366,074 ------------ NET ASSETS 100.0% ............................................................................... $492,236,198 ============
See Selected Portfolio Abbreviations on page 180. (a) Security purchased on a when-issued or delayed delivery basis. (b) Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. Quarterly Statements of Investments | See Notes to Statements of Investments. | 179 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, MAY 31, 2005 (UNAUDITED) (CONTINUED) SELECTED PORTFOLIO ABBREVIATIONS 1915 ACT - Improvement Bond Act of 1915 ABAG - The Association of Bay Area Governments ACA - American Capital Access Holdings Inc. ACES - Adjustable Convertible Exempt Securities AD - Assessment District AMBAC - American Municipal Bond Assurance Corp. BART - Bay Area Rapid Transit BIG - Bond Investors Insurance Co. (acquired by MBIA in 1989 and no longer does business under this name) CBI - Certificate of Beneficial Interest CDA - Community Development Authority/Agency CDD - Community Development District CFD - Community Facilities District COP - Certificate of Participation EDA - Economic Development Authority EDC - Economic Development Corp. EDR - Economic Development Revenue ETM - Escrow to Maturity FGIC - Financial Guaranty Insurance Co. FHA - Federal Housing Authority/Agency FNMA - Federal National Mortgage Association FSA - Financial Security Assistance GNMA - Government National Mortgage Association GO - General Obligation HDA - Housing Development Authority/Agency HDC - Housing Development Corp. HFA - Housing Finance Authority/Agency HFAR - Housing Finance Authority/Agency Revenue HFC - Housing Finance Corp. HMR - Home Mortgage Revenue ID - Improvement District IDA - Industrial Development Authority/Agency IDAR - Industrial Development Authority/Agency Revenue IDB - Industrial Development Bond/Board IDBR - Industrial Development Bond Insurance Revenue IDR - Industrial Development Revenue IPC - Industrial Pollution Control ISD - Independent School District LLC - Limited Liability Corp. MAC - Municipal Assistance Corp. MBIA - Municipal Bond Investors Assurance Corp. MBS - Mortgage-Backed Securities MF - Multi-Family MFH - Multi-Family Housing MFHR - Multi-Family Housing Revenue MFM - Multi-Family Mortgage MFMR - Multi-Family Mortgage Revenue MFR - Multi-Family Revenue MTA - Metropolitan Transit Authority MUD - Municipal Utility District PBA - Public Building Authority PCFA - Pollution Control Financing Authority PCR - Pollution Control Revenue PFAR - Public Financing Authority Revenue PLC - Public Limited Co. PUD - Public Utility District RAN - Revenue Anticipation Notes RDA - Redevelopment Agency/Authority RDAR - Redevelopment Agency Revenue RMR - Residential Mortgage Revenue SF - Single Family SFHMR - Single Family Home Mortgage Revenue SFHR - Single Family Housing Revenue SFM - Single Family Mortgage SFMR - Single Family Mortgage Revenue SFR - Single Family Revenue UHSD - Unified/Union High School District USD - Unified/Union School District VHA - Volunteer Hospital of America VRDN - Variable Rate Demand Notes XLCA - XL Capital Assurance 180 | See Notes to Statements of Investments. | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST NOTES TO STATEMENTS OF INVESTMENTS (UNAUDITED) Franklin Tax-Free Trust (the Trust) is registered under the Investment Company Act of 1940 as an open-end investment company, consisting of twenty-five separate series (the Funds). All funds included in this report are diversified except the Franklin Connecticut Tax-Free Fund, the Franklin Federal Intermediate-Term Tax-Free Income Fund, the Franklin Florida Insured Tax-Free Income Fund and the Franklin Maryland Tax-Free Income Fund. 1. INCOME TAXES At May 31, 2005, the net unrealized appreciation (depreciation) based on the cost of investments for income tax purposes were as follows:
---------------------------------------------------- FRANKLIN FRANKLIN FRANKLIN ALABAMA ARIZONA COLORADO TAX-FREE TAX-FREE TAX-FREE INCOME FUND INCOME FUND INCOME FUND ---------------------------------------------------- Cost of investments ............................ $245,595,782 $ 849,800,696 $ 359,678,324 ==================================================== Unrealized appreciation ........................ $ 17,962,863 $ 69,076,661 $ 28,809,576 Unrealized depreciation ........................ -- (1,128,400) -- ---------------------------------------------------- Net unrealized appreciation (depreciation) ..... $ 17,962,863 $ 67,948,261 $ 28,809,576 ==================================================== ---------------------------------------------------- FRANKLIN FRANKLIN FRANKLIN FEDERAL CONNECTICUT DOUBLE INTERMEDIATE-TERM TAX-FREE TAX-FREE TAX-FREE INCOME FUND INCOME FUND INCOME FUND ---------------------------------------------------- Cost of investments ............................ $274,767,767 $ 334,657,100 $ 507,880,852 ==================================================== Unrealized appreciation ........................ $ 18,956,466 $ 22,647,840 $ 21,622,302 Unrealized depreciation ........................ (434,904) (239,352) (134,042) ---------------------------------------------------- Net unrealized appreciation (depreciation) ..... $ 18,521,562 $ 22,408,488 $ 21,488,260 ==================================================== ---------------------------------------------------- FRANKLIN FEDERAL FRANKLIN FRANKLIN LIMITED-TERM FLORIDA FLORIDA TAX-FREE INSURED TAX-FREE TAX-FREE INCOME FUND INCOME FUND INCOME FUND ==================================================== Cost of investments ............................ $ 32,220,194 $ 139,389,843 $1,552,612,231 ---------------------------------------------------- Unrealized appreciation ........................ $ 45,973 $ 11,725,120 $ 141,302,124 Unrealized depreciation ........................ (296,016) -- (1,800,000) ---------------------------------------------------- Net unrealized appreciation (depreciation) ..... $ (250,043) $ 11,725,120 $ 139,502,124 ====================================================
Quarterly Statements of Investments | 181 FRANKLIN TAX-FREE TRUST NOTES TO STATEMENTS OF INVESTMENTS (UNAUDITED) (CONTINUED) 1. INCOME TAXES (CONTINUED)
---------------------------------------------------- FRANKLIN FRANKLIN FRANKLIN GEORGIA HIGH YIELD INSURED TAX-FREE TAX-FREE TAX-FREE INCOME FUND INCOME FUND INCOME FUND ---------------------------------------------------- Cost of investments ............................ $202,596,789 $5,341,347,469 $1,710,129,989 ==================================================== Unrealized appreciation ........................ $ 16,332,422 $ 421,399,251 $ 131,375,908 Unrealized depreciation ........................ (337,405) (59,350,688) -- ---------------------------------------------------- Net unrealized appreciation (depreciation) ..... $ 15,995,017 $ 362,048,563 $ 131,375,908 ==================================================== ---------------------------------------------------- FRANKLIN FRANKLIN FRANKLIN KENTUCKY LOUISIANA MARYLAND TAX-FREE TAX-FREE TAX-FREE INCOME FUND INCOME FUND INCOME FUND ---------------------------------------------------- Cost of investments ............................ $105,906,762 $ 199,519,163 $ 367,576,904 ==================================================== Unrealized appreciation ........................ $ 7,255,885 $ 13,446,028 $ 23,418,564 Unrealized depreciation ........................ (235,234) -- -- ---------------------------------------------------- Net unrealized appreciation (depreciation) ..... $ 7,020,651 $ 13,446,028 $ 23,418,564 ==================================================== ---------------------------------------------------- FRANKLIN FRANKLIN FRANKLIN MASSACHUSETTS MICHIGAN MINNESOTA INSURED TAX-FREE INSURED TAX-FREE INSURED TAX-FREE INCOME FUND INCOME FUND INCOME FUND ---------------------------------------------------- Cost of investments ............................ $441,229,317 $1,271,923,348 $ 542,277,686 ==================================================== Unrealized appreciation ........................ $ 36,469,037 $ 98,103,513 $ 32,006,052 Unrealized depreciation ........................ -- -- (47,207) ---------------------------------------------------- Net unrealized appreciation (depreciation) ..... $ 36,469,037 $ 98,103,513 $ 31,958,845 ==================================================== ---------------------------------------------------- FRANKLIN FRANKLIN FRANKLIN MISSOURI NEW JERSEY NORTH CAROLINA TAX-FREE TAX-FREE TAX-FREE INCOME FUND INCOME FUND INCOME FUND ---------------------------------------------------- Cost of investments ............................ $551,463,427 $ 931,986,342 $ 497,933,680 ==================================================== Unrealized appreciation ........................ $ 38,799,305 $ 73,413,990 $ 35,187,879 Unrealized depreciation ........................ (413,127) (628,447) (158,770) ---------------------------------------------------- Net unrealized appreciation (depreciation) ..... $ 38,386,178 $ 72,785,543 $ 35,029,109 ====================================================
182 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST NOTES TO STATEMENTS OF INVESTMENTS (UNAUDITED) (CONTINUED) 1. INCOME TAXES (CONTINUED)
---------------------------------------------------- FRANKLIN FRANKLIN FRANKLIN OHIO INSURED OREGON PENNSYLVANIA TAX-FREE TAX-FREE TAX-FREE INCOME FUND INCOME FUND INCOME FUND ---------------------------------------------------- Cost of investments ............................ $973,856,256 $ 609,621,515 $ 771,578,562 ==================================================== Unrealized appreciation ........................ $ 66,920,911 $ 44,439,384 $ 53,439,422 Unrealized depreciation ........................ -- (5,537) (159,255) ---------------------------------------------------- Net unrealized appreciation (depreciation) ..... $ 66,920,911 $ 44,433,847 $ 53,280,167 ====================================================
------------ FRANKLIN VIRGINIA TAX-FREE INCOME FUND ------------ Cost of investments ............................ $451,305,577 ============ Unrealized appreciation ........................ $ 33,595,778 Unrealized depreciation ........................ (31,231) ------------ Net unrealized appreciation (depreciation) ..... $ 33,564,547 ============ For information on the Funds' policy regarding valuation of investments and other significant accounting policies, please refer to the Funds' most recent semiannual or annual shareholder report. Quarterly Statements of Investments | 183 Item 2. Controls and Procedures. (a) Evaluation of Disclosure Controls and Procedures. The Registrant maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Registrant's filings under the Securities Exchange Act of 1934 and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant's management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant's management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. Within 90 days prior to the filing date of this Quarterly Schedule of Portfolio Holdings on Form N-Q, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant's management, including the Registrant's principal executive officer and the Registrant's principal financial officer, of the effectiveness of the design and operation of the Registrant's disclosure controls and procedures. Based on such evaluation, the Registrant's principal executive officer and principal financial officer concluded that the Registrant's disclosure controls and procedures are effective. (b) Changes in Internal Controls. There have been no significant changes in the Registrant's internal controls or in other factors that could significantly affect the internal controls subsequent to the date of their evaluation in connection with the preparation of this Quarterly Schedule of Portfolio Holdings on Form N-Q. Item 3. Exhibits. (A) Certification pursuant to Section 30a-2 under the Investment Company Act of 1940 of Jimmy D. Gambill, Chief Executive Officer - Finance and Administration, and Galen G. Vetter, Chief Financial Officer. 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. FRANKLIN TAX-FREE TRUST By /s/JIMMY D. GAMBILL ------------------------ Jimmy D. Gambill Chief Executive Officer - Finance and Administration Date July 22, 2005 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/JIMMY D. GAMBILL ------------------------ Jimmy D. Gambill Chief Executive Officer - Finance and Administration Date July 22, 2005 By /s/GALEN G. VETTER ------------------------ Galen G. Vetter Chief Financial Officer Date July 22, 2005 Exhibit (A) I, Jimmy D. Gambill, certify that: 1. I have reviewed this report on Form N-Q of Franklin Tax-Free Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. July 22, 2005 /s/JIMMY D. GAMBILL Chief Executive Officer - Finance and Administration I, Galen G. Vetter, certify that: 1. I have reviewed this report on Form N-Q of Franklin Tax-Free Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. July 22, 2005 /s/GALEN G. VETTER Chief Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----