-----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, VSDmNlSS5QUbqlsZIrdpMxHXD6DVP3nL8jBsFC/4eosKXkKHDlcujJ5lEjk7i6dL oa2ukd3T9RQBLy308EmJXw== 0000757010-06-000006.txt : 20060127 0000757010-06-000006.hdr.sgml : 20060127 20060127130452 ACCESSION NUMBER: 0000757010-06-000006 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20051130 FILED AS OF DATE: 20060127 DATE AS OF CHANGE: 20060127 EFFECTIVENESS DATE: 20060127 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: 06556455 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 ftftnqform0106.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) CRAIG S. TYLE, 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: 11/30/05 -------- Item 1. Schedule of Investments. FRANKLIN TAX-FREE TRUST QUARTERLY STATEMENTS OF INVESTMENTS NOVEMBER 30, 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 ................... 24 Franklin Federal Limited-Term Tax-Free Income Fund ........................ 34 Franklin Florida Insured Tax-Free Income Fund ............................. 38 Franklin Florida Tax-Free Income Fund ..................................... 41 Franklin Georgia Tax-Free Income Fund ..................................... 50 Franklin High Yield Tax-Free Income Fund .................................. 54 Franklin Insured Tax-Free Income Fund ..................................... 78 Franklin Kentucky Tax-Free Income Fund .................................... 94 Franklin Louisiana Tax-Free Income Fund ................................... 97 Franklin Maryland Tax-Free Income Fund .................................... 100 Franklin Massachusetts Insured Tax-Free Income Fund ....................... 104 Franklin Michigan Insured Tax-Free Income Fund ............................ 108 Franklin Minnesota Insured Tax-Free Income Fund ........................... 116 Franklin Missouri Tax-Free Income Fund .................................... 122 Franklin New Jersey Tax-Free Income Fund .................................. 128 Franklin North Carolina Tax-Free Income Fund .............................. 135 Franklin Ohio Insured Tax-Free Income Fund ................................ 140 Franklin Oregon Tax-Free Income Fund ...................................... 152 Franklin Pennsylvania Tax-Free Income Fund ................................ 158 Franklin Virginia Tax-Free Income Fund .................................... 164 Selected Portfolio Abbreviations .......................................... 169 Notes to Statements of Investments ........................................ 170 [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, NOVEMBER 30, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN ALABAMA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 98.9% BONDS 98.9% ALABAMA 86.5% Alabama Building Renovation Finance Authority Revenue, Refunding, AMBAC Insured, 5.625%, 9/01/24 .................................................................................... $ 2,500,000 $ 2,713,700 Alabama Drinking Water Finance Authority Revenue, Revolving Fund Loan, Series A, AMBAC Insured, 5.25%, 8/15/24 .............................................................. 1,755,000 1,850,560 Alabama HFA, SFMR, Series D-2, GNMA Secured, 5.75%, 10/01/23 .................................. 765,000 775,488 Alabama State Docks Department Docks Facilities Revenue, MBIA Insured, 6.30%, 10/01/21 ........................................................... 4,500,000 4,685,805 Refunding, MBIA Insured, 5.50%, 10/01/22 ................................................ 1,000,000 1,068,310 Alabama Water Pollution Control Authority Revenue, Revolving Fund Loan, Series A, AMBAC Insured, 5.00%, 8/15/23 .............................................................. 4,435,000 4,597,321 Alabaster GO, wts., AMBAC Insured, Pre-Refunded, 5.00%, 9/01/24 ................................................................................. 3,470,000 3,749,404 9/01/27 ................................................................................. 1,500,000 1,620,780 Alabaster Sewer Revenue, AMBAC Insured, 5.00%, 4/01/29 ........................................ 2,055,000 2,121,212 Auburn GO, FSA Insured, 5.00%, 1/01/24 ........................................................ 1,500,000 1,540,470 Auburn University Revenues, Athletic, Series A, FSA Insured, 5.00%, 4/01/32 ................... 2,000,000 2,057,460 Baldwin County Eastern Shore Health Care Authority Hospital Revenue, 5.75%, 4/01/27 ........... 1,000,000 1,071,420 Bessemer, wts., XLCA Insured, 5.00%, 2/01/35 .................................................. 1,990,000 2,047,372 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 3,655,960 11/15/26 ................................................................................ 2,000,000 2,089,120 Birmingham GO, Refunding and Capital Improvement, Series B, AMBAC Insured, 5.00%, 12/01/32 ................................................................................... 7,000,000 7,153,090 Birmingham Southern College Private Educational Building Authority Tuition Revenue, Refunding, 5.35%, 12/01/19 ................................................................. 1,000,000 1,007,670 Clarke and Mobile Counties Gas District Revenue, AMBAC Insured, Pre-Refunded, 5.875%, 12/01/23 ................................................................................... 4,000,000 4,385,880 Coffee County PBA, Building Revenue, MBIA Insured, 5.00%, 9/01/27 ............................................................ 2,145,000 2,207,226 wts., FSA Insured, Pre-Refunded, 6.10%, 9/01/16 ......................................... 1,000,000 1,040,860 Courtland IDBR, Environmental Improvement Revenue, Champion International Corp. Project, Refunding, 6.40%, 11/01/26 ................................................................. 2,000,000 2,077,120 Culman and Jefferson County Gas District Gas Revenue, MBIA Insured, 5.85%, 7/01/24 ............ 2,000,000 2,195,340 Etowah County Board Education, Special Tax School wts., FSA Insured, 5.00%, 9/01/24 ................................................................................. 4,235,000 4,388,603 9/01/28 ................................................................................. 2,000,000 2,061,960 9/01/33 ................................................................................. 2,500,000 2,565,950 Fairfield GO, wts., Refunding, AMBAC Insured, 5.00%, 2/01/29 .................................. 1,500,000 1,547,535 Fairfield IDB Environmental Improvement Revenue, USX Corp. Project, Refunding, 5.45%, 9/01/14 .......................................................................... 2,000,000 2,087,000 Series A, 6.70%, 12/01/24 ............................................................... 3,500,000 3,541,160 Florence Electric Revenue, wts., FSA Insured, 5.25%, 6/01/19 .................................. 1,415,000 1,500,523 Florence GO, wts., Series B, FGIC Insured, 5.00%, 9/01/23 ..................................... 2,500,000 2,614,000 Franklin County wts., Series B, AMBAC Insured, 5.125%, 10/01/33 ............................... 2,000,000 2,082,860 Fultondale GO, wts., Series A, AMBAC Insured, 5.00%, 8/01/30 .................................. 2,250,000 2,331,832 Gulf Shores GO, wts., AMBAC Insured, 6.00%, 9/01/21 .......................................................................... 770,000 790,513 Pre-Refunded, 6.00%, 9/01/21 ............................................................ 1,165,000 1,196,152
Quarterly Statements of Investments | 3 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN ALABAMA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) ALABAMA (CONT.) Houston County Health Care Authority Revenue, AMBAC Insured, 6.125%, 10/01/25 ........................................................................ $ 1,000,000 $ 1,097,330 6.25%, 10/01/30 ......................................................................... 3,150,000 3,485,979 Huntsville Capital Improvement GO, Series A, AMBAC Insured, 5.00%, 2/01/23 .................... 1,000,000 1,036,430 Huntsville Health Care Authority Revenue, Series A, MBIA Insured, 5.40%, 6/01/22 .......................................................................... 4,000,000 4,304,480 5.00%, 6/01/24 .......................................................................... 1,100,000 1,134,375 5.50%, 6/01/27 .......................................................................... 3,820,000 4,101,267 Huntsville PBA, Lease Revenue, Municipal Justice and Public Safety Center, MBIA Insured, 5.00%, 10/01/25 ................................................................................ 5,000,000 5,176,350 10/01/29 ................................................................................ 4,000,000 4,122,400 Jacksonville State University Revenue, Tuition and Fee, MBIA Insured, 5.00%, 12/01/22 ......... 3,000,000 3,109,200 Jefferson County Ltd. Obligation School wts. Revenue, Series A, 5.00%, 1/01/24 ................ 2,000,000 2,056,080 Jefferson County Sewer Revenue, Capital Improvement, wts., Series A, FGIC Insured, Pre-Refunded, 5.375%, 2/01/36 ........ 6,000,000 6,414,720 wts., ETM, 7.50%, 9/01/13 ............................................................... 200,000 218,732 wts., Series D, FGIC Insured, Pre-Refunded, 5.75%, 2/01/27 .............................. 6,000,000 6,229,740 wts., Series D, FGIC Insured, Pre-Refunded, 5.00%, 2/01/32 .............................. 3,000,000 3,240,930 Lauderdale County and Florence Health Care Authority Revenue, Coffee Health Group, Series A, MBIA Insured, 5.625%, 7/01/21 ......................................................................... 3,000,000 3,258,390 5.375%, 7/01/29 ......................................................................... 3,095,000 3,237,896 Pre-Refunded, 5.375%, 7/01/29 ........................................................... 1,905,000 2,048,732 Madison County Board of Education Capital Outlay GO, Tax Anticipation wts., Series A, AMBAC Insured, 5.00%, 9/01/34 .............................................................. 2,000,000 2,058,340 Madison GO, wts., AMBAC Insured, 5.35%, 2/01/26 ............................................... 2,410,000 2,546,261 Marshall County Health Care Authority Hospital Revenue, Series A, 5.75%, 1/01/32 .............. 2,170,000 2,257,994 Mobile County Board School Commissioners GO, Capital Outlay wts., Series B, AMBAC Insured, 5.10%, 3/01/22 .......................................................................... 2,265,000 2,354,422 5.125%, 3/01/31 ......................................................................... 8,230,000 8,482,579 Mobile Housing Assistance Corp. MFHR, Refunding, Series A, FSA Insured, 7.625%, 2/01/21 .................................................................................... 1,200,000 1,202,856 Montgomery Medical Clinic Board Health Care Facilities Revenue, Jackson Hospital and Clinic, Refunding, AMBAC Insured, 6.00%, 3/01/26 ........................................... 6,000,000 6,154,380 Morgan County GO, wts., AMBAC Insured, 5.00%, 4/01/29 ......................................... 1,975,000 2,038,635 Moulton Water Works Board Water Revenue, MBIA Insured, 5.375%, 1/01/32 ........................ 1,935,000 2,027,125 Muscle Shoals GO, wts., MBIA Insured, 5.80%, 8/01/16 .......................................................................... 295,000 302,101 5.90%, 8/01/25 .......................................................................... 1,210,000 1,239,306 5.50%, 8/01/30 .......................................................................... 2,150,000 2,300,500 Pre-Refunded, 5.80%, 8/01/16 ............................................................ 1,430,000 1,464,420 Pre-Refunded, 5.90%, 8/01/25 ............................................................ 5,790,000 5,930,234 Orange Beach Water Sewer and Fire Protection Authority Revenue, MBIA Insured, 5.00%, 5/15/30 ................................................................................. 1,500,000 1,553,640 5/15/35 ................................................................................. 6,000,000 6,186,660
4 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN ALABAMA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) ALABAMA (CONT.) Oxford GO, School wts., AMBAC Insured, Pre-Refunded, 6.00%, 5/01/30 ........................... $ 4,275,000 $ 4,663,640 Russellville GO, wts., MBIA Insured, Pre-Refunded, 5.75%, 12/01/26 ............................ 2,500,000 2,610,025 Sheffield GO, wts., AMBAC Insured, 5.125%, 5/01/33 ............................................ 2,610,000 2,713,330 St. Clair County Board of Education wts., Tax Anticipation wts., Refunding, Series C, FSA Insured, 5.85%, 2/01/29 ........................................ 1,530,000 1,640,191 Series C, FSA Insured, Pre-Refunded, 5.85%, 2/01/29 ..................................... 3,285,000 3,558,411 Sylacauga GO, wts., AMBAC Insured, Pre-Refunded, 5.50%, 6/01/25 ............................... 1,700,000 1,820,666 Tallahassee GO, Water, Gas and Sewer Waste, AMBAC Insured, Pre-Refunded, 5.25%, 5/01/31 .................................................................................... 1,135,000 1,195,416 Troy State University Student Fee Revenue, MBIA Insured, 5.00%, 11/01/21 ...................... 2,215,000 2,326,835 Tuscaloosa, wts., FSA Insured, 5.00%, 1/01/30 ................................................. 2,500,000 2,586,525 University of Alabama General Revenue, Series A, MBIA Insured, 5.00%, 7/01/29 ................. 1,000,000 1,034,480 University of Montavello Revenue, FSA Insured, 5.30%, 5/01/22 ................................. 1,940,000 2,062,492 University of North Alabama Revenue, General Fee, Series A, FSA Insured, 5.375%, 11/01/17 .................................... 4,395,000 4,680,235 Student Housing, FGIC Insured, 5.00%, 11/01/29 .......................................... 2,995,000 3,087,545 Valley Special Care Facilities Financing Authority Revenue, Lanier Memorial Hospital, Series A, 5.65%, 11/01/22 .................................................................. 3,465,000 3,423,940 Warrior River Water Authority Water Revenue, FSA Insured, 5.40%, 8/01/29 .......................................................................... 4,250,000 4,525,655 5.50%, 8/01/34 .......................................................................... 4,735,000 5,006,600 -------------- 231,728,126 -------------- U. S. TERRITORIES 12.4% Puerto Rico Commonwealth GO, Public Improvement, FSA Insured, 5.125%, 7/01/30 ............................................................ 1,115,000 1,163,480 FSA Insured, Pre-Refunded, 5.25%, 7/01/27 ............................................... 1,495,000 1,626,366 FSA Insured, Pre-Refunded, 5.125%, 7/01/30 .............................................. 1,885,000 2,038,797 Refunding, FSA Insured, 5.25%, 7/01/27 .................................................. 1,005,000 1,070,777 Series A, 5.125%, 7/01/31 ............................................................... 3,550,000 3,597,038 Series A, Pre-Refunded, 5.125%, 7/01/31 ................................................. 1,450,000 1,568,306 Puerto Rico Electric Power Authority Power Revenue, Series II, FSA Insured, 5.125%, 7/01/26 ................................................. 5,000,000 5,280,600 Series RR, FGIC Insured, 5.00%, 7/01/35 ................................................. 8,000,000 8,339,680 Puerto Rico PBA Revenue, Guaranteed Government Facilities, Series D, 5.25%, 7/01/27 ................................................................ 760,000 781,637 Series D, Pre-Refunded, 5.25%, 7/01/27 .................................................. 2,305,000 2,507,471 Series G, 5.00%, 7/01/26 ................................................................ 1,000,000 1,017,890 Virgin Islands PFAR, senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/13 ................................................................................ 1,700,000 1,782,518 10/01/22 ................................................................................ 2,300,000 2,387,262 -------------- 33,161,822 -------------- TOTAL LONG TERM INVESTMENTS (COST $252,604,501) ............................................... 264,889,948 --------------
Quarterly Statements of Investments | 5 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN ALABAMA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM INVESTMENTS 1.0% BONDS 1.0% ALABAMA 1.0% (a)Evergreen IDB, IDR, Tenax Manufacturing Project, Refunding, Weekly VRDN and Put, 3.05%, 12/01/12 ................................................................................... $ 300,000 $ 300,000 (a)Homewood Educational Building Authority Revenue, Educational Facilities, Samford University, AMBAC Insured, Daily VRDN and Put, 2.95%, 12/01/21 ............................. 2,400,000 2,400,000 -------------- TOTAL SHORT TERM INVESTMENTS (COST $2,700,000) ................................................ 2,700,000 -------------- TOTAL INVESTMENTS (COST $255,304,501) 99.9% ................................................... 267,589,948 OTHER ASSETS, LESS LIABILITIES 0.1% ........................................................... 253,575 -------------- NET ASSETS 100.0% ............................................................................. $ 267,843,523 ==============
See Selected Portfolio Abbreviations on page 169. (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, NOVEMBER 30, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN ARIZONA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 95.7% BONDS 94.1% ARIZONA 74.8% Arizona Health Facilities Authority Hospital System Revenue, John C. Lincoln Health Network, 5.75%, 12/01/32 ......................................... $ 3,280,000 $ 3,425,009 Phoenix Baptist Hospital, MBIA Insured, ETM, 6.25%, 9/01/11 ............................. 1,555,000 1,617,838 Arizona Health Facilities Authority Revenue, Catholic Healthcare West, Series A, 6.625%, 7/01/20 .................................................................................... 6,390,000 7,126,320 Arizona School Facilities Board Revenue, State School Improvement, Pre-Refunded, 5.00%, 7/01/19 .................................................................................... 2,000,000 2,145,400 Arizona State Board of Regents COP, University of Arizona Main Campus, Series A-1, AMBAC Insured, 5.125%, 6/01/25 ............................................................. 2,000,000 2,083,880 Arizona State Municipal Financing Program COP, Refunding, Series 14, AMBAC Insured, 5.00%, 8/01/33 ..................................... 1,000,000 1,026,110 Series 20, BIG Insured, ETM, 7.625%, 8/01/06 ............................................ 1,145,000 1,177,919 Arizona State University COP, Arizona State University Project-2002, MBIA Insured, 5.00%, 7/01/20 ..................... 5,475,000 5,720,937 Arizona State University Project-2002, MBIA Insured, 5.00%, 7/01/21 ..................... 5,965,000 6,212,070 Arizona State University Project-2002, MBIA Insured, 5.10%, 7/01/23 ..................... 3,545,000 3,718,173 Arizona State University Project-2002, MBIA Insured, 5.10%, 7/01/24 ..................... 1,875,000 1,962,206 Arizona State University Project-2002, MBIA Insured, 5.10%, 7/01/25 ..................... 2,640,000 2,758,193 Downtown Campus/Mercado Project, Series A, MBIA Insured, 5.80%, 7/01/24 ................. 1,350,000 1,396,642 Research Infrastructure Projects, AMBAC Insured, 5.00%, 9/01/30 ......................... 17,250,000 17,878,935 Research Infrastructure Projects, Series A, AMBAC Insured, 5.00%, 9/01/26 ............... 1,000,000 1,039,690 Research Infrastructure Projects, Series A, AMBAC Insured, 5.00%, 9/01/27 ............... 2,915,000 3,023,992 Arizona State University Revenue, FGIC Insured, 5.00%, 7/01/23 .......................................................................... 2,890,000 2,997,970 5.00%, 7/01/25 .......................................................................... 2,250,000 2,324,947 Pre-Refunded, 5.875%, 7/01/25 ........................................................... 1,000,000 1,092,140 Arizona State University Revenues, System, Refunding, AMBAC Insured, 5.00%, 7/01/27 ........... 1,895,000 1,979,972 Arizona Student Loan Acquisition Authority Student Loan Revenue, junior subordinate, Refunding, Series B-1, 6.15%, 5/01/29 ............................... 1,000,000 1,058,610 Refunding, Senior Series A-1, 5.90%, 5/01/24 ............................................ 1,500,000 1,586,835 Arizona Tourism and Sports Authority Tax Revenue, Multipurpose Stadium Facility, Series A, MBIA Insured, 5.00%, 7/01/28 ............................................................... 7,000,000 7,258,650 Casa Grande IDA, IDR, Frito Lay/PepsiCo, 6.65%, 12/01/14 ................................................. 500,000 500,900 PCR, Frito Lay/PepsiCo, 6.60%, 12/01/10 ................................................. 1,800,000 1,803,186 Douglas Community Housing Corp. MFR, Rancho La Perilla, Series A, GNMA Secured, 6.125%, 7/20/41 .................................................................................... 2,240,000 2,361,744 Eloy Municipal Property Corp. Facilities Revenue, 7.80%, 7/01/09 .............................. 60,000 60,928 Glendale IDA Educational Facilities Revenue, American Graduate School International, Connie Lee Insured, Pre-Refunded, 5.875%, 7/01/15 .......................................... 2,200,000 2,255,286 Glendale IDAR, Midwestern University, Series A, 5.375%, 5/15/28 ......................................................................... 8,000,000 8,362,320 Connie Lee Insured, 6.00%, 5/15/16 ...................................................... 455,000 469,410 Connie Lee Insured, 6.00%, 5/15/26 ...................................................... 340,000 350,244 MBIA Insured, 5.375%, 5/15/28 ........................................................... 1,050,000 1,103,844 Glendale Municipal Property Corp. Excise Tax Revenue, Series A, AMBAC Insured, 5.00%, 7/01/33 .................................................................................... 1,000,000 1,032,400
Quarterly Statements of Investments | 7 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN ARIZONA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) ARIZONA (CONT.) Glendale Water and Sewer Revenue, sub. lien, AMBAC Insured, 5.00%, 7/01/23 .................... $ 2,000,000 $ 2,084,360 Goodyear Community Facilities General District No. 1 GO, MBIA Insured, 5.20%, 7/15/25 ......... 1,500,000 1,573,455 Goodyear Community Facilities Utilities District No. 1 GO, MBIA Insured, 5.20%, 7/15/25 ....... 1,000,000 1,048,970 Greater Arizona Development Authority Infrastructure Revenue, Series A, MBIA Insured, 5.00%, 8/01/26 ................................................................................. 4,425,000 4,624,700 8/01/27 ................................................................................. 2,320,000 2,419,134 8/01/30 ................................................................................. 10,700,000 11,123,078 8/01/35 ................................................................................. 9,090,000 9,406,241 Marana Municipal Property Corp. Municipal Facilities Revenue, Refunding, MBIA Insured, 5.25%, 7/01/22 ............................................................................. 1,100,000 1,155,605 Maricopa County GO, USD No. 41, Gilbert, 6.25%, 7/01/15 .......................................................................... 160,000 170,202 Pre-Refunded, 6.25%, 7/01/15 ............................................................ 1,840,000 1,971,339 Maricopa County Hospital Revenue, Sun Health Corp., 6.125%, 4/01/18 ......................................................................... 4,380,000 4,596,109 5.30%, 4/01/29 .......................................................................... 7,095,000 7,179,076 5.00%, 4/01/35 .......................................................................... 12,090,000 11,906,232 Pre-Refunded, 6.125%, 4/01/18 ........................................................... 11,270,000 11,893,794 Refunding, 5.80%, 4/01/08 ............................................................... 3,870,000 4,034,978 Refunding, 5.90%, 4/01/09 ............................................................... 2,120,000 2,213,153 Maricopa County IDA, MFHR, Madera Pointe Apartments Project, Refunding, FSA Insured, 5.90%, 6/01/26 .......... 2,105,000 2,157,162 MFHR, Metro Gardens, Mesa Ridge Project, Series A, MBIA Insured, 5.15%, 7/01/29 ......... 2,350,000 2,398,574 MFHR, Senior National Health Facilities II, Project A, FSA Insured, 5.50%, 1/01/18 ...... 2,000,000 2,171,040 MFHR, Tierra Antigua Project, Series A-1, AMBAC Insured, 5.30%, 12/01/21 ................ 1,585,000 1,618,380 MFHR, Villas De Merced Apartment Project, Series A, GNMA Secured, 5.50%, 12/20/37 ....... 570,000 574,845 MFHR, Western Groves Apartments, Series A-1, AMBAC Insured, 5.30%, 12/01/22 ............. 1,785,000 1,821,664 SFMR, GNMA Secured, 6.25%, 12/01/30 ..................................................... 95,000 96,673 Maricopa County IDA Health Facilities Revenue, Catholic Healthcare West, Refunding, ACA Insured, 5.00%, 7/01/16 ........................ 1,785,000 1,808,937 Catholic Healthcare West, Refunding, Series A, ACA Insured, 5.00%, 7/01/21 .............. 9,600,000 9,665,856 Catholic Healthcare West, Series A, 5.375%, 7/01/23 ..................................... 7,000,000 7,314,930 Catholic Healthcare West, Series A, 5.50%, 7/01/26 ...................................... 12,250,000 12,846,330 Catholic Healthcare West Project, Refunding, Series A, 5.00%, 7/01/16 ................... 10,315,000 10,588,760 Maricopa County IDA Hospital Facility Revenue, Mayo Clinic Hospital, 5.25%, 11/15/37 ................................................... 16,000,000 16,678,400 Mayo Clinic Hospital, AMBAC Insured, 5.25%, 11/15/37 .................................... 3,000,000 3,089,730 Samaritan Health Services, Refunding, Series A, MBIA Insured, ETM, 7.00%, 12/01/16 ...... 1,890,000 2,331,844 Maricopa County Pollution Control Corp. PCR, Public Service Co. Palo Verde Project, Series A, AMBAC Insured, 5.05%, 5/01/29 .............................................................. 11,500,000 11,878,235 Mesa Utility System Revenue, FGIC Insured, 5.00%, 7/01/21 ............................................................ 5,000,000 5,179,150 MBIA Insured, 5.00%, 7/01/26 ............................................................ 10,000,000 10,409,800 MBIA Insured, 5.00%, 7/01/27 ............................................................ 10,500,000 10,907,505 MBIA Insured, 5.00%, 7/01/28 ............................................................ 11,000,000 11,411,070 Mohave County IDA Health Care Revenue, Chris Ridge and Silver, Refunding, GNMA Secured, 6.375%, 11/01/31 ........................................................................... 585,000 609,494
8 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN ARIZONA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) ARIZONA (CONT.) Nogales Municipal Development Authority Inc. Revenue, AMBAC Insured, 5.00%, 6/01/27 ........... $ 1,000,000 $ 1,032,800 Northern Arizona University COP, AMBAC Insured, 5.00%, 9/01/30 ........................................................... 6,360,000 6,591,886 Northern Arizona University Research Projects, AMBAC Insured, 5.00%, 9/01/25 ............ 2,130,000 2,228,491 Northern Arizona University Research Projects, AMBAC Insured, 5.00%, 9/01/27 ............ 2,355,000 2,456,312 Northern Arizona University Research Projects, AMBAC Insured, 5.00%, 9/01/30 ............ 3,285,000 3,415,776 Northern Arizona University Revenues, FGIC Insured, 5.00%, 6/01/30 ............................ 1,000,000 1,028,430 Oro Valley Municipal Property Corp. Revenue, Municipal Water System, MBIA Insured, Pre-Refunded, 5.75%, 7/01/17 ............................................................... 500,000 512,215 Peoria Water and Sewer Revenue, FGIC Insured, 5.00%, 7/01/19 .................................. 1,300,000 1,353,378 Phoenix Airport Revenue, Refunding, Series B, MBIA Insured, 6.20%, 7/01/10 ....................................... 700,000 708,743 Refunding, Series C, MBIA Insured, 6.30%, 7/01/10 ....................................... 1,680,000 1,701,101 Refunding, Series C, MBIA Insured, 6.40%, 7/01/11 ....................................... 1,785,000 1,807,545 Refunding, Series C, MBIA Insured, 6.40%, 7/01/12 ....................................... 570,000 577,199 Series D, MBIA Insured, 6.30%, 7/01/10 .................................................. 1,800,000 1,822,608 Series D, MBIA Insured, 6.40%, 7/01/11 .................................................. 3,825,000 3,873,310 Series D, MBIA Insured, 6.40%, 7/01/12 .................................................. 820,000 830,357 Phoenix Civic Improvement Corp. Airport Revenue, senior lien, Series B, FGIC Insured, 5.25%, 7/01/22 ................................................................................. 3,000,000 3,133,620 7/01/23 ................................................................................. 5,000,000 5,214,050 7/01/27 ................................................................................. 15,250,000 15,823,705 Phoenix Civic Improvement Corp. Excise Tax Revenue, Adams Street Garage Project, senior lien, Series B, 5.35%, 7/01/24 ...................... 2,985,000 3,166,249 Municipal Courthouse Project, senior lien, Series A, 5.375%, 7/01/29 .................... 18,310,000 19,430,572 Subordinated, Civic Plaza Expansion Project, Series A, FGIC Insured, 5.00%, 7/01/35 ..... 15,000,000 15,518,550 Phoenix Civic Improvement Corp. Wastewater System Revenue, junior lien, FGIC Insured, Pre-Refunded, 6.00%, 7/01/19 .............................................. 3,000,000 3,342,540 FGIC Insured, Pre-Refunded, 6.00%, 7/01/20 .............................................. 3,670,000 4,089,041 FGIC Insured, Pre-Refunded, 6.00%, 7/01/24 .............................................. 24,715,000 27,536,959 MBIA Insured, 5.00%, 7/01/28 ............................................................ 2,000,000 2,071,840 MBIA Insured, 5.00%, 7/01/29 ............................................................ 3,405,000 3,527,308 Refunding, FGIC Insured, 5.00%, 7/01/20 ................................................. 9,710,000 10,141,124 Refunding, FGIC Insured, 5.125%, 7/01/21 ................................................ 10,000,000 10,475,200 Refunding, FGIC Insured, 5.00%, 7/01/24 ................................................. 7,050,000 7,299,076 Phoenix Civic Improvement Corp. Water System Revenue, junior lien, FGIC Insured, 5.00%, 7/01/26 .................................................................................... 3,250,000 3,356,405 Phoenix GO, 5.25%, 7/01/22 .......................................................................... 5,420,000 5,753,872 Various Purposes, Series B, 5.00%, 7/01/27 .............................................. 8,360,000 8,677,178 Phoenix HFC Mortgage Revenue, Section 8 Project, Refunding, Series A, MBIA Insured, 6.90%, 1/01/23 .................................................................................... 1,195,000 1,196,326 Phoenix IDA, SFMR, Series 1B, GNMA Secured, 6.20%, 6/01/22 .................................... 55,000 55,473 Phoenix IDA Government Office Lease Revenue, Capitol Mall LLC II Project, AMBAC Insured, 5.00%, 9/15/21 .............................. 4,300,000 4,470,968 Capitol Mall LLC II Project, AMBAC Insured, 5.00%, 9/15/28 .............................. 4,000,000 4,114,680 Capitol Mall LLC Project, Refunding, AMBAC Insured, 5.00%, 9/15/25 ...................... 6,135,000 6,375,063 Capitol Mall LLC Project, Refunding, AMBAC Insured, 5.00%, 9/15/26 ...................... 3,445,000 3,579,803
Quarterly Statements of Investments | 9 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 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, (cont.) Capitol Mall Project, AMBAC Insured, Pre-Refunded, 5.375%, 9/15/22 ...................... $ 2,000,000 $ 2,160,820 Capitol Mall Project, AMBAC Insured, Pre-Refunded, 5.50%, 9/15/27 ....................... 22,300,000 24,214,678 Capitol Mall Project, Refunding, AMBAC Insured, 5.00%, 9/15/27 .......................... 4,615,000 4,788,201 Phoenix IDA Hospital Revenue, Refunding, Series B, Connie Lee Insured, 5.75%, 12/01/16 ........ 3,500,000 3,709,090 Phoenix Municipal Housing Revenue, Fillmore Gardens Project, Refunding, 6.30%, 6/01/09 ........ 1,500,000 1,506,450 Phoenix Street and Highway Revenue, Refunding, 6.60%, 7/01/07 ................................. 610,000 611,702 Pima County IDA, MFR, Series A, FNMA Insured, Pre-Refunded, 6.00%, 12/01/21 .............................. 2,720,000 2,844,902 SFMR, Refunding, Series A, 7.625%, 2/01/12 .............................................. 470,000 470,545 SFMR, Series B-1, GNMA Secured, 6.10%, 5/01/31 .......................................... 55,000 55,550 Prescott Municipal Property Corp. Revenue, Refunding, Series 2004, MBIA Insured, 5.00%, 7/01/34 .................................................................................... 2,665,000 2,758,808 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 6,294,600 Refunding, Series A, 5.00%, 1/01/31 ..................................................... 1,375,000 1,416,209 Series A, 5.00%, 1/01/35 ................................................................ 4,450,000 4,610,200 San Luis Civic Improvement Corp. Municipal Facilities Excise Tax Revenue, XLCA Insured, 5.00%, 7/01/25 ................................................................................. 5,970,000 6,209,337 7/01/38 ................................................................................. 8,650,000 8,908,462 Scottsdale GO, Refunding, 5.00%, 7/01/22 ...................................................... 3,000,000 3,177,120 Scottsdale IDA Hospital Revenue, Scottsdale Healthcare, 5.70%, 12/01/21 ......................................................................... 2,000,000 2,137,920 5.80%, 12/01/31 ......................................................................... 14,865,000 15,854,414 Scottsdale Municipal Property Corp. Excise Tax Revenue, 5.00%, 7/01/24 .......................................................................... 5,000,000 5,237,600 (a)5.00%, 7/01/30 .......................................................................... 7,580,000 7,882,897 Series A, 5.00%, 7/01/34 ................................................................ 2,000,000 2,063,220 Show Low IDA Hospital Revenue, Navapache Regional Medical Center, Radian Insured, 5.00%, 12/01/25 ................................................................................ 1,420,000 1,463,921 12/01/30 ................................................................................ 1,815,000 1,857,997 12/01/35 ................................................................................ 2,000,000 2,037,800 Sierra Vista Municipal Property Corp. Facilities Revenue, AMBAC Insured, 6.15%, 1/01/15 ....... 360,000 362,686 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 3,261,360 Tempe Arizona IDA Lease Revenue, State University Foundation, AMBAC Insured, 5.00%, 7/01/28 ................................................................................. 4,275,000 4,419,067 7/01/34 ................................................................................. 11,510,000 11,875,442 Tolleson IDA, MFR, Copper Cove Project, Series A, GNMA Secured, 5.40%, 11/20/22 ......................................................................... 1,090,000 1,121,261 5.45%, 11/20/32 ......................................................................... 1,285,000 1,321,070 Tucson Airport Authority Inc. Revenue, sub. lien, AMBAC Insured, 5.35%, 6/01/31 ............... 10,000,000 10,340,500 Tucson IDA Lease Revenue, University of Arizona/Marshall Foundation, Series A, AMBAC Insured, 5.00%, 7/15/32 ............................................................................. 1,000,000 1,026,550
10 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN ARIZONA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) ARIZONA (CONT.) Tucson Water Revenue, Series A, FGIC Insured, 5.00%, 7/01/23 .................................................. $ 3,600,000 $ 3,716,388 Series D, FGIC Insured, 5.25%, 7/01/23 .................................................. 3,000,000 3,119,520 Series D, FGIC Insured, 5.25%, 7/01/24 .................................................. 2,700,000 2,838,753 University Medical Center Corp. Revenue, 5.00%, 7/01/35 ....................................... 7,000,000 6,893,460 University of Arizona COP, Parking and Student Housing, AMBAC Insured, Pre-Refunded, 5.75%, 6/01/24 ................ 1,115,000 1,202,416 University of Arizona Projects, Series B, AMBAC Insured, 5.125%, 6/01/22 ................ 2,250,000 2,373,660 University of Arizona Projects, Series B, AMBAC Insured, 5.00%, 6/01/26 ................. 7,070,000 7,328,974 University of Arizona Projects, Series B, AMBAC Insured, 5.00%, 6/01/28 ................. 7,000,000 7,233,870 University of Arizona Projects, Series B, AMBAC Insured, 5.00%, 6/01/31 ................. 5,565,000 5,736,625 University of Arizona University Revenues, Arizona Board of Regents System, Series A, FGIC Insured, 5.80%, 6/01/24 ............................................................... 2,000,000 2,176,080 Yavapai County IDA Hospital Facility Revenue, Regional Medical Center, Series A, 6.00%, 8/01/33 .................................................................................... 2,000,000 2,112,740 Yavapai County USD No. 28 Camp Verde GO, Refunding, FGIC Insured, 6.00%, 7/01/09 .............. 75,000 75,889 Yuma IDA Hospital Revenue, Regency Apartments, Refunding, Series A, GNMA Secured, 5.50%, 12/20/32 .................. 920,000 921,739 Yuma Regional Medical Center, FSA Insured, Pre-Refunded, 5.50%, 8/01/21 ................. 2,015,000 2,231,149 Yuma Municipal Property Corp. Revenue, Municipal Facilities, AMBAC Insured, 5.00%, 7/01/25 .... 3,100,000 3,219,071 -------------- 697,341,971 -------------- U.S. TERRITORIES 19.3% Children's Trust Fund Puerto Rico Tobacco Settlement Revenue, Asset-Backed Bonds, Refunding, 5.50%, 5/15/39 .................................................................. 5,000,000 5,062,000 Puerto Rico Commonwealth GO, Public Improvement, Series A, 5.375%, 7/01/28 .................... 3,355,000 3,461,454 Puerto Rico Commonwealth Highway and Transportation Authority Highway Revenue, Series Y, 5.00%, 7/01/36 .......................................................................... 10,000,000 9,906,800 5.50%, 7/01/36 .......................................................................... 8,550,000 9,143,883 Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Series B, Pre-Refunded, 6.00%, 7/01/39 .................................................. 19,600,000 21,882,028 Series D, Pre-Refunded, 5.375%, 7/01/36 ................................................. 5,000,000 5,475,350 Puerto Rico Electric Power Authority Power Revenue, Series II, 5.25%, 7/01/31 ................. 15,000,000 15,529,650 Puerto Rico HFC Revenue, MFM, Portfolio A-I, 7.50%, 4/01/22 ...................................................... 470,000 470,338 Sixth Portfolio, Section 8, FHA Insured, Pre-Refunded, 7.75%, 12/01/26 .................. 40,000 40,901 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 ...................... 5,080,000 5,149,190 Hospital Auxilio Mutuo Obligation, Series A, MBIA Insured, 6.25%, 7/01/24 ............... 2,790,000 2,824,931 Puerto Rico PBA Revenue, Guaranteed, Government Facilities, Series D, 5.375%, 7/01/33 ............................................................... 8,190,000 8,480,417 Series D, Pre-Refunded, 5.375%, 7/01/33 ................................................. 21,810,000 23,883,477 Series I, 5.375%, 7/01/34 ............................................................... 40,000,000 41,770,800 Series I, 5.00%, 7/01/36 ................................................................ 7,000,000 6,934,760
Quarterly Statements of Investments | 11 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 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 $ 3,806,766 Pre-Refunded, 5.50%, 8/01/29 ............................................................ 11,340,000 12,453,928 Virgin Islands PFAR, senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/13 ....... 2,500,000 2,621,350 Virgin Islands Water and Power Authority Water System Revenue, Refunding, 5.50%, 7/01/17 ...... 1,500,000 1,529,025 -------------- 180,427,048 -------------- TOTAL BONDS (COST $834,927,132) ............................................................... 877,769,019 -------------- STEP-UP BONDS 1.6% ARIZONA 1.6% Phoenix Civic Improvement Corp. Distribution Revenue, Convertible Capital Appreciation, Civic Plaza, Series B, FGIC Insured, zero cpn. to 7/01/13, 5.50% thereafter, 7/01/27 ................................................................................. 3,945,000 2,959,736 7/01/28 ................................................................................. 2,000,000 1,500,180 7/01/29 ................................................................................. 2,000,000 1,504,820 7/01/36 ................................................................................. 5,000,000 3,781,850 7/01/37 ................................................................................. 7,000,000 5,259,940 -------------- TOTAL STEP-UP BONDS (COST $15,518,781) ........................................................ 15,006,526 -------------- TOTAL LONG TERM INVESTMENTS (COST $850,445,913) ............................................... 892,775,545 -------------- SHORT TERM INVESTMENTS 0.9% BONDS 0.9% ARIZONA 0.1% (b)University of Arizona COP, Student Union Bookstore Project, Series B, AMBAC Insured, Weekly VRDN and Put, 2.96%, 6/01/24 ............................................................... 800,000 800,000 -------------- U.S. TERRITORIES 0.8% (b)Puerto Rico Commonwealth Government Development Bank Revenue, Refunding, MBIA Insured, Weekly VRDN and Put, 2.85%, 12/01/15 .............................................................. 1,650,000 1,650,000 (b)Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Series A, AMBAC Insured, Weekly VRDN and Put, 2.93%, 7/01/28 ......................................... 5,610,000 5,610,000 -------------- 7,260,000 -------------- TOTAL SHORT TERM INVESTMENTS (COST $8,060,000) ................................................ 8,060,000 -------------- TOTAL INVESTMENTS (COST $858,505,913) 96.6% ................................................... 900,835,545 OTHER ASSETS, LESS LIABILITIES 3.4% ........................................................... 31,887,487 -------------- NET ASSETS 100.0% ............................................................................. $ 932,723,032 ==============
See Selected Portfolio Abbreviations on page 169. (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. 12 | See Notes to Statements of Investments. | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN COLORADO TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 99.8% BONDS 98.4% COLORADO 94.9% Arapahoe County MFR, Housing Development Reserve South Creek, Series A, FSA Insured, 6.45%, 6/01/32 ............................................................................ $ 3,105,000 $ 3,281,457 Arapahoe County Water and Wastewater GO, Refunding, Series A, MBIA Insured, 5.125%, 12/01/32 .................................................................................. 15,000,000 15,602,400 Arvada IDR, Wanco Inc. Project, 5.25%, 12/01/07 ........................................................................ 65,000 65,868 5.80%, 12/01/17 ........................................................................ 480,000 497,290 Aurora COP, AMBAC Insured, 5.50%, 12/01/30 ................................................... 4,935,000 5,250,692 Boulder County Development Revenue, University Corp. for Atmospheric Research, MBIA Insured, 5.00%, 9/01/33 ............................................................................ 1,500,000 1,542,195 Boulder County Hospital Revenue, Longmont United Hospital Project, 5.50%, 12/01/12 ........................................................................ 1,000,000 1,021,140 5.60%, 12/01/17 ........................................................................ 3,385,000 3,453,952 Bowles Metropolitan District GO, Refunding, FSA Insured, 5.00%, 12/01/33 ..................... 2,500,000 2,572,950 Broadlands Metropolitan District No. 2 GO, Refunding, MBIA Insured, 5.25%, 12/01/34 .......... 8,655,000 9,104,368 Broomfield COP, AMBAC Insured, 6.00%, 12/01/29 ......................................................... 2,000,000 2,176,100 Master Facilities Lease Purchase, AMBAC Insured, 5.625%, 12/01/22 ...................... 1,535,000 1,643,049 Broomfield Sales and Use Tax Revenue, Refunding and Improvement, Series A, AMBAC Insured, 5.00%, 12/01/27 ........................................................................... 10,000,000 10,315,100 Broomfield Sewer Activity Enterprise Sewer and Wastewater Revenue, AMBAC Insured, 5.00%, 12/01/31 .................................................................................. 7,500,000 7,709,100 Centennial Downs Metropolitan District GO, Refunding, AMBAC Insured, 5.00%, 12/01/28 ......... 1,560,000 1,612,478 Colorado Department of Transportation COP, MBIA Insured, 5.00%, 6/15/34 ...................... 6,915,000 7,127,913 Colorado Educational and Cultural Facilities Authority Revenue, Student Housing, University of Colorado Foundation Project, AMBAC Insured, 5.00%, 7/01/27 ............................................................................. 6,545,000 6,740,434 Student Housing, University of Colorado Foundation Project, AMBAC Insured, 5.00%, 7/01/32 ............................................................................. 10,005,000 10,257,926 University of Denver Project, Refunding, AMBAC Insured, 5.375%, 3/01/23 ................ 2,065,000 2,209,963 (a)University of Denver Project, Refunding, Series B, FGIC Insured, 5.25%, 3/01/35 ........ 3,250,000 3,458,975 Colorado Health Facilities Authority Revenue, Birchwood Manor Project, Series A, GNMA Secured, 7.625%, 4/01/26 ....................... 1,615,000 1,621,008 Catholic Health Initiatives, Series A, 5.00%, 12/01/28 ................................. 1,800,000 1,825,974 Community Provider Pooled Loan Program, Series A, FSA Insured, 7.25%, 7/15/17 .......... 94,000 94,471 Covenant Retirement Communities, 6.75%, 12/01/15 ....................................... 1,750,000 1,803,445 Covenant Retirement Communities, 6.75%, 12/01/25 ....................................... 4,950,000 5,091,273 Evangelical Lutheran, Series A, 5.25%, 6/01/34 ......................................... 3,500,000 3,601,360 Hospital, Parkview Medical Center Inc., Refunding, 5.00%, 9/01/20 ...................... 890,000 914,813 Hospital, Parkview Medical Center Inc., Refunding, 5.00%, 9/01/25 ...................... 1,000,000 1,014,560 Hospital Improvement, North Colorado Medical Center Inc. Project, FSA Insured, Pre-Refunded, 5.75%, 5/15/24 ........................................................ 5,000,000 5,423,300 Kaiser Permanente, Series A, ETM, 5.35%, 11/01/16 ...................................... 8,000,000 8,237,600 Oakbrook Manor, Series A, GNMA Secured, 7.25%, 4/01/11 ................................. 185,000 185,657 Oakbrook Manor, Series A, GNMA Secured, 7.625%, 4/01/26 ................................ 885,000 888,292 Parkview Medical Center Inc. Project, 5.25%, 9/01/18 ................................... 1,660,000 1,687,772 Parkview Medical Center Inc. Project, 5.30%, 9/01/25 ................................... 1,615,000 1,632,894
Quarterly Statements of Investments | 13 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN COLORADO TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) COLORADO (CONT.) Colorado Health Facilities Authority Revenue, (cont.) Portercare Adventist Health, Pre-Refunded, 6.625%, 11/15/26 ............................ $ 2,500,000 $ 2,921,625 Portercare Adventist Health, Pre-Refunded, 6.50%, 11/15/31 ............................. 5,500,000 6,391,055 Colorado HFAR, MF, Project II, Series A-2, 5.30%, 10/01/23 ............................................ 1,645,000 1,699,384 MF, Project II, Series A-2, 5.375%, 10/01/32 ........................................... 3,605,000 3,681,426 MFH, Castle High, Series A, AMBAC Insured, 5.90%, 12/01/20 ............................. 2,630,000 2,749,875 MFH Insured Mortgage, Series A-2, FHA Insured, 6.00%, 10/01/28 ......................... 1,000,000 1,031,810 MFH Insured Mortgage, Series C-3, 6.05%, 10/01/32 ...................................... 1,535,000 1,591,396 Colorado Springs Hospital Revenue, 6.375%, 12/15/30 ....................................................................... 3,785,000 4,147,452 Pre-Refunded, 6.375%, 12/15/30 ......................................................... 3,715,000 4,214,445 Colorado Springs Utilities Revenue, Refunding and Improvement, Series A, 5.375%, 11/15/26 .................................. 10,000,000 10,332,100 sub. lien, System, Series B, FSA Insured, 5.00%, 11/15/35 .............................. 5,330,000 5,515,697 sub. lien, System Improvement, Series B, 5.00%, 11/15/33 ............................... 4,000,000 4,108,040 Colorado Water Resources and Power Development Authority Clean Water Revenue, Series A, 6.15%, 9/01/11 ......................................................................... 125,000 125,528 6.30%, 9/01/14 ......................................................................... 25,000 25,107 Colorado Water Resources and Power Development Authority Small Water Resource Revenue, Series A, FGIC Insured, 5.80%, 11/01/20 ................................................... 2,000,000 2,184,880 Colorado Water Resources and Power Development Authority Water Resources Revenue, Arapahoe County Water Improvement, Series E, MBIA Insured, 5.00%, 12/01/35 ............. 7,500,000 7,780,650 East Cherry Creek Valley Water Sanitary District, MBIA Insured, 5.00%, 11/15/30 ........ 2,590,000 2,703,390 Parker Water and Sanitary District, MBIA Insured, 5.00%, 9/01/30 ....................... 5,000,000 5,193,300 Denver City and County Airport Revenue, Refunding, Series B, 5.50%, 11/15/33 ................................................... 5,000,000 5,022,150 Series A, AMBAC Insured, 5.625%, 11/15/23 .............................................. 4,500,000 4,754,700 Series D, 7.75%, 11/15/13 .............................................................. 1,000,000 1,163,250 Denver City and County COP, Series B, AMBAC Insured, Pre-Refunded, 5.50%, 12/01/25 ........... 12,500,000 13,734,375 Denver Health and Hospital Authority Healthcare Revenue, Refunding, Series A, 6.25%, 12/01/33 ................................................... 3,250,000 3,463,720 Series A, 6.00%, 12/01/23 .............................................................. 1,000,000 1,062,350 Series A, 6.00%, 12/01/31 .............................................................. 5,400,000 5,628,312 Dove Valley Metropolitan District Arapahoe County GO, Refunding, FSA Insured, 5.00%, 11/01/25 ............................................................................... 1,740,000 1,820,179 11/01/35 ............................................................................... 2,640,000 2,738,050 E-470 Public Highway Authority Revenue, Refunding, Senior Series A, MBIA Insured, 5.00%, 9/01/26 ............................... 5,000,000 5,130,050 Senior Series A, MBIA Insured, 5.75%, 9/01/29 .......................................... 4,575,000 5,030,624 Senior Series A, MBIA Insured, 5.75%, 9/01/35 .......................................... 10,825,000 11,888,123 East Quincy Highlands Metropolitan District GO, Refunding, AMBAC Insured, 5.00%, 12/01/31 .... 1,230,000 1,276,027 El Paso County Mortgage Revenue, Stetson Meadows, Series A, GNMA Secured, 5.25%, 12/20/32 .... 1,890,000 1,934,604 El Paso County School District No. 2 GO, FGIC Insured, 5.25%, 12/01/26 ....................... 4,000,000 4,209,520 El Paso County School District No. 38 GO, Pre-Refunded, 6.00%, 12/01/24 ...................... 1,500,000 1,669,560 Fort Collins PCR, Anheuser-Busch Co. Project, Refunding, 6.00%, 9/01/31 ...................... 5,325,000 5,441,351
14 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN COLORADO TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) COLORADO (CONT.) Garfield County Building Corp. COP, AMBAC Insured, 5.75%, 12/01/19 ............................................................................... $ 1,500,000 $ 1,630,680 12/01/24 ............................................................................... 1,000,000 1,083,240 Greeley MFR, Housing Mortgage, Creek Stone Project, FHA Insured, 5.95%, 7/01/28 .............. 1,000,000 1,031,340 La Junta Hospital Revenue, Ark Valley Regional Medical Center Project, 5.75%, 4/01/14 ......................................................................... 2,090,000 2,157,465 6.00%, 4/01/19 ......................................................................... 1,000,000 1,041,160 6.10%, 4/01/24 ......................................................................... 1,000,000 1,037,480 Lakewood MFHR, Mortgage, FHA Insured, 6.65%, 10/01/25 ........................................................................ 1,235,000 1,253,266 6.70%, 10/01/36 ........................................................................ 3,025,000 3,069,437 Las Animas County School District No. 1 COP, Refunding, 6.15%, 12/01/08 ........................................................................ 1,000,000 1,010,000 6.20%, 12/01/10 ........................................................................ 935,000 944,350 Northwest Parkway Public Highway Authority Revenue, Series A, AMBAC Insured, 5.125%, 6/15/26 ......................................................... 7,550,000 7,996,658 AMBAC Insured, 5.125%, 6/15/31 ......................................................... 4,465,000 4,690,884 FSA Insured, 5.25%, 6/15/41 ............................................................ 3,460,000 3,644,660 Pitkin County Open Space Acquisition GO, Refunding, AMBAC Insured, 5.375%, 12/01/30 .......... 2,940,000 3,126,631 Pueblo Board Waterworks Water Revenue, Series A, FSA Insured, Pre-Refunded, 6.00%, 11/01/21 .. 4,300,000 4,784,653 Pueblo County COP, Public Parking, 6.90%, 7/01/15 ............................................ 385,000 385,350 Pueblo County GO, MBIA Insured, Pre-Refunded, 6.00%, 6/01/16 ................................. 4,395,000 4,455,255 Pueblo County School District No. 070 Pueblo Rural GO, FGIC Insured, Pre-Refunded, 6.00%, 12/01/19 .................................................................................. 3,995,000 4,376,283 Summit County Sports Facilities Revenue, Keystone Resorts Project, Ralston Purina Co., Refunding, 7.875%, 9/01/08 ................................................................ 2,750,000 3,075,160 Thornton Development Authority Tax Increment Revenue, North Washington Street Urban Renewal, MBIA Insured, 5.00%, 12/01/29 ............................................................. 6,100,000 6,323,443 Thornton Water Enterprise Revenue, MBIA Insured, 5.00%, 12/01/29 ............................. 7,010,000 7,266,776 University of Colorado COP, Series A, AMBAC Insured, 5.00%, 6/01/33 .......................... 6,070,000 6,257,199 University of Colorado Enterprise System Revenue, Refunding and Improvement, FGIC Insured, 5.00%, 6/01/33 ............................................................................ 10,790,000 11,236,706 University of Colorado Hospital Authority Revenue, Series A, 5.60%, 11/15/25 ................. 1,900,000 1,966,823 University of Northern Colorado Revenue, Auxiliary Facilities Systems, Refunding and Improvement, AMBAC Insured, 5.00%, 6/01/31 ............................................................................. 3,000,000 3,067,830 FSA Insured, 5.00%, 6/01/30 ............................................................ 9,580,000 9,946,627 FSA Insured, 5.00%, 6/01/35 ............................................................ 1,500,000 1,556,220 Ute Water Conservancy District Water Revenue, MBIA Insured, 5.75%, 6/15/20 ................... 5,000,000 5,468,200 Westminster Building Authority COP, MBIA Insured, 5.25%, 12/01/22 ............................ 1,555,000 1,644,879 -------------- 377,558,529 -------------- U.S. TERRITORIES 3.5% 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 1,365,838
Quarterly Statements of Investments | 15 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 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 $ 2,195,175 Series I, 5.375%, 7/01/34 .............................................................. 5,000,000 5,221,350 Virgin Islands PFAR, senior lien, Fund Loan Notes, Refunding, Series A, 5.40%, 10/01/12 ........................................................................ 2,500,000 2,620,200 5.50%, 10/01/22 ........................................................................ 2,500,000 2,594,850 -------------- 13,997,413 -------------- TOTAL BONDS (COST $370,481,632) .............................................................. 391,555,942 -------------- ZERO COUPON BONDS 1.4% COLORADO 1.4% E-470 Public Highway Authority Revenue, Capital Appreciation, Series A, MBIA Insured, 9/01/33 ........................................................ 3,000,000 660,900 Series B, MBIA Insured, 9/01/32 ........................................................ 7,800,000 1,823,250 Series B, MBIA Insured, 9/01/34 ........................................................ 14,075,000 2,922,252 -------------- TOTAL ZERO COUPON BONDS (COST $5,168,735) .................................................... 5,406,402 -------------- TOTAL LONG TERM INVESTMENTS (COST $375,650,367) .............................................. 396,962,344 -------------- SHORT TERM INVESTMENTS 1.0% BONDS 1.0% COLORADO 1.0% (b)Colorado Educational and Cultural Facilities Authority Revenue, National Jewish Federal Bond Program, Daily VRDN and Put, 3.00%, 2/01/35 ..................................................... 1,800,000 1,800,000 Series A-4, Daily VRDN and Put, 3.00%, 2/01/34 ......................................... 1,000,000 1,000,000 (b)Colorado Springs Utilities Revenue, sub. lien, Series A, Weekly VRDN and Put, 3.00%, 11/01/29 .................................................................................. 1,300,000 1,300,000 -------------- TOTAL SHORT TERM INVESTMENTS (COST $4,100,000) ............................................... 4,100,000 -------------- TOTAL INVESTMENTS (COST $379,750,367) 100.8% ................................................. 401,062,344 OTHER ASSETS, LESS LIABILITIES (0.8)% ........................................................ (3,244,685) -------------- NET ASSETS 100.0% ............................................................................ $ 397,817,659 ==============
See Selected Portfolio Abbreviations on page 169. (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. 16 | See Notes to Statements of Investments. | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CONNECTICUT TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 97.5% BONDS 97.5% CONNECTICUT 76.8% Bridgeport GO, Series A, FGIC Insured, Pre-Refunded, 5.875%, 7/15/19 .......................... $ 1,000,000 $ 1,109,710 Connecticut State Airport Revenue, Bradley International Airport, Series A, FGIC Insured, 5.125%, 10/01/26 ........................................................................... 3,000,000 3,087,030 Connecticut State Development Authority First Mortgage Gross Revenue, Health Care Project, 5.75%, 12/01/23 ......................................................................... 750,000 778,665 Baptist Homes Inc. Project, Refunding, Radian Insured, 5.625%, 9/01/22 .................. 2,000,000 2,148,360 Church Homes Inc., Refunding, 5.80%, 4/01/21 ............................................ 4,000,000 4,081,800 Elim Park Baptist Home, Refunding, Series A, 5.375%, 12/01/18 ........................... 1,100,000 1,113,156 Connecticut State Development Authority PCR, Connecticut Light and Water, Refunding, Series A, 5.85%, 9/01/28 ................................................................... 5,500,000 5,833,575 Connecticut State Development Authority Revenue, Life Care Facilities, Seabury Project, Refunding, Radian Insured, 5.00%, 9/01/21 .................................................. 2,000,000 2,044,680 Connecticut State Development Authority Water Facility Revenue, Bridgeport Hydraulic Co. Project, 6.15%, 4/01/35 .......................................................................... 1,000,000 1,038,290 6.00%, 9/01/36 .......................................................................... 10,000,000 10,290,200 Connecticut State GO, Series B, 5.00%, 6/15/22 .......................................................................... 2,000,000 2,087,020 Pre-Refunded, 5.00%, 6/15/20 ............................................................ 10,000,000 10,721,900 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 2,089,300 Brunswick School, Series A, MBIA Insured, 5.00%, 7/01/29 ................................ 5,000,000 5,139,550 Catholic Health East, Series F, MBIA Insured, 5.75%, 11/15/29 ........................... 3,250,000 3,508,050 Child Care Facilities Program, Series C, AMBAC Insured, 5.625%, 7/01/29 ................. 1,250,000 1,348,663 Child Care Facilities Program, Series E, AMBAC Insured, 5.00%, 7/01/31 .................. 1,000,000 1,032,160 Connecticut College Project, Series D-1, MBIA Insured, 5.75%, 7/01/30 ................... 1,000,000 1,088,650 Danbury Hospital Issue, Refunding, Series G, AMBAC Insured, 5.75%, 7/01/29 .............. 3,500,000 3,760,120 Eastern Connecticut Health Network, Refunding, Series A, Radian Insured, 6.00%, 7/01/25 .............................................................................. 9,195,000 9,861,454 Eastern Connecticut Health Network, Series C, Radian Insured, 5.125%, 7/01/30 ........... 2,500,000 2,563,600 Fairfield University, Series I, MBIA Insured, Pre-Refunded, 5.25%, 7/01/25 .............. 2,500,000 2,678,175 Fairfield University, Series I, MBIA Insured, Pre-Refunded, 5.50%, 7/01/29 .............. 8,000,000 8,636,960 Fairfield University, Series J, MBIA Insured, 5.00%, 7/01/29 ............................ 3,000,000 3,218,100 Greenwich Academy, Series B, FSA Insured, 5.00%, 3/01/32 ................................ 4,210,000 4,346,236 Greenwich Hospital, Series A, MBIA Insured, 5.80%, 7/01/26 .............................. 2,000,000 2,065,920 Hebrew Home and Hospital, Series B, FHA Insured, 5.15%, 8/01/28 ......................... 3,765,000 3,896,888 Horace Bushnell Memorial Hall, Series A, MBIA Insured, 5.625%, 7/01/29 .................. 1,000,000 1,070,520 Hospital for Special Care, Refunding, Series B, 5.375%, 7/01/17 ......................... 3,000,000 2,960,490 Hospital for Special Care, Refunding, Series B, 5.50%, 7/01/27 .......................... 3,200,000 3,089,024 Lutheran General Health Care System, ETM, 7.375%, 7/01/19 ............................... 475,000 578,384 New Horizons Village Project, 7.30%, 11/01/16 ........................................... 2,905,000 2,941,225 Norwich Free Academy, Series A, AMBAC Insured, 5.00%, 7/01/34 ........................... 1,675,000 1,737,595 Sacred Heart University, Refunding, Series E, Radian Insured, 5.00%, 7/01/28 ............ 4,000,000 4,061,880 Sacred Heart University, Series C, 6.50%, 7/01/16 ....................................... 235,000 242,198 Sacred Heart University, Series C, 6.625%, 7/01/26 ...................................... 785,000 807,961 Sacred Heart University, Series C, Pre-Refunded, 6.50%, 7/01/16 ......................... 765,000 793,756 Sacred Heart University, Series C, Pre-Refunded, 6.625%, 7/01/26 ........................ 6,215,000 6,452,972 Sacred Heart University, Series D, Pre-Refunded, 6.20%, 7/01/27 ......................... 1,000,000 1,061,930
Quarterly Statements of Investments | 17 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 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.) Series B, MBIA Insured, 5.00%, 7/01/33 .................................................. $ 2,000,000 $ 2,072,600 St. Mary's Hospital, Refunding, Series E, 5.50%, 7/01/20 ................................ 4,615,000 4,425,554 Trinity College, Series G, AMBAC Insured, 5.00%, 7/01/31 ................................ 5,425,000 5,626,701 Trinity College, Series H, MBIA Insured, 5.00%, 7/01/26 ................................. 1,855,000 1,941,795 University of Connecticut Foundation, Series A, 5.375%, 7/01/29 ......................... 1,250,000 1,305,800 Village Families and Children, Series A, AMBAC Insured, 5.00%, 7/01/32 .................. 1,000,000 1,033,700 Westover School, Series A, Radian Insured, 5.70%, 7/01/30 ............................... 2,000,000 2,147,000 William W. Backus Hospital, Series G, FSA Insured, 5.00%, 7/01/35 ....................... 3,870,000 4,028,206 Windham Community Memorial Hospital, Series C, 6.00%, 7/01/20 ........................... 5,000,000 5,042,300 Yale New Haven Hospital, Refunding, Series H, MBIA Insured, 5.70%, 7/01/25 .............. 4,000,000 4,133,080 Yale University, Series Y-1, 5.00%, 7/01/35 ............................................. 15,000,000 15,720,300 Connecticut State HFAR, Housing Mortgage Finance Program, Refunding, Sub Series E-2, 5.20%, 11/15/21 ............ 1,840,000 1,874,702 Housing Mortgage Finance Program, Series B, 6.10%, 11/15/31 ............................. 2,715,000 2,807,337 Housing Mortgage Finance Program, Series C-2, 6.25%, 11/15/18 ........................... 1,500,000 1,541,955 Housing Mortgage Finance Program, Sub Series E-4, 5.05%, 5/15/28 ........................ 4,650,000 4,703,382 Special Obligation, Special Needs Housing, Series 1, AMBAC Insured, 5.00%, 6/15/22 ...... 1,000,000 1,055,370 Special Obligation, Special Needs Housing, Series 1, AMBAC Insured, 5.00%, 6/15/32 ...... 1,000,000 1,037,230 Connecticut State Higher Education Supplemental Loan Authority Revenue, Family Education Loan Program, Series A, AMBAC Insured, 6.00%, 11/15/18 .......................................................... 745,000 751,996 MBIA Insured, 5.50%, 11/15/17 ........................................................... 1,050,000 1,057,791 Connecticut State Special Tax Obligation Revenue, Transportation Infrastructure, Series A, FSA Insured, Pre-Refunded, 5.375%, 10/01/18 ................................... 1,000,000 1,095,180 Series B, AMBAC Insured, 5.00%, 12/01/20 ................................................ 5,000,000 5,274,150 Series B, AMBAC Insured, 5.00%, 12/01/22 ................................................ 1,000,000 1,046,780 Greater New Haven Water Pollution Control Authority Regional Water Revenue, Series A, MBIA Insured, 5.00%, 11/15/30 .............................................................. 5,000,000 5,235,300 Griswold GO, AMBAC Insured, 7.50%, 4/01/06 .................................................... 200,000 202,716 New Haven GO, Refunding, Series C, MBIA Insured, 5.00%, 11/01/22 .............................. 3,000,000 3,159,930 South Regional Water Authority Water System Revenue, Series A, MBIA Insured, 5.00%, 8/01/33 .................................................................................... 11,570,000 12,001,214 University of Connecticut Revenue, Student Fee, Refunding, Series A, FGIC Insured, 5.00%, 11/15/26 ...................................... 10,000,000 10,487,200 Series A, 5.00%, 5/15/23 ................................................................ 10,000,000 10,481,900 Series A, FGIC Insured, Pre-Refunded, 6.00%, 11/15/25 ................................... 1,500,000 1,682,955 -------------- 238,340,271 --------------
18 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CONNECTICUT TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) U.S. TERRITORIES 20.7% Children's Trust Fund Puerto Rico Tobacco Settlement Revenue, Asset-Backed Bonds, Refunding, 5.50%, 5/15/39 .................................................................. $ 4,000,000 $ 4,049,600 Puerto Rico Commonwealth GO, Public Improvement, FSA Insured, 5.125%, 7/01/30 ............................................................ 835,000 871,306 FSA Insured, Pre-Refunded, 5.125%, 7/01/30 .............................................. 1,165,000 1,260,052 MBIA Insured, Pre-Refunded, 5.75%, 7/01/26 .............................................. 1,000,000 1,090,750 Series A, 5.00%, 7/01/29 ................................................................ 1,000,000 1,002,730 Series A, 5.125%, 7/01/31 ............................................................... 3,195,000 3,237,334 Series A, 5.00%, 7/01/33 ................................................................ 1,000,000 991,090 Series A, 5.00%, 7/01/34 ................................................................ 750,000 743,213 Series A, FGIC Insured, Pre-Refunded, 5.00%, 7/01/32 .................................... 4,000,000 4,329,920 Series A, Pre-Refunded, 5.125%, 7/01/31 ................................................. 1,000,000 1,081,590 Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Series A, 5.00%, 7/01/38 ................................................................ 2,500,000 2,476,075 Series G, 5.00%, 7/01/33 ................................................................ 1,000,000 991,090 Puerto Rico Electric Power Authority Power Revenue, Series HH, FSA Insured, 5.25%, 7/01/29 .................................................. 13,000,000 13,876,460 Series II, 5.25%, 7/01/31 ............................................................... 1,000,000 1,035,310 Series RR, XLCA Insured, 5.00%, 7/01/30 ................................................. 1,000,000 1,041,670 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 3,615,563 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 1,024,570 Puerto Rico PBA Revenue, Guaranteed, Government Facilities, Series D, 5.375%, 7/01/33 ............................................................... 1,995,000 2,065,743 Series D, Pre-Refunded, 5.375%, 7/01/33 ................................................. 6,005,000 6,575,895 Series I, 5.00%, 7/01/36 ................................................................ 1,000,000 990,680 Puerto Rico Public Finance Corp. Revenue, Commonwealth Appropriation, Series E, Pre-Refunded, 5.70%, 8/01/25 ............................................................... 5,000,000 5,423,750 Virgin Islands PFAR, senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/13 ................................................................................ 2,500,000 2,621,350 10/01/22 ................................................................................ 2,500,000 2,594,850 Virgin Islands Water and Power Authority Electric System Revenue, Refunding, 5.30%, 7/01/21 .................................................................................... 1,000,000 994,720 -------------- 63,985,311 -------------- TOTAL LONG TERM INVESTMENTS (COST $289,325,092) ............................................... 302,325,582 --------------
Quarterly Statements of Investments | 19 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN CONNECTICUT TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM INVESTMENTS 1.3% BONDS 1.3% CONNECTICUT 1.3% (a)Connecticut State Health and Educational Facilities Authority Revenue, Yale University, Series V-1, Daily VRDN and Put, 2.90%, 7/01/36 ............................................. $ 3,300,000 $ 3,300,000 (a)Connecticut State Health and Educational United Methodist Home, Series A, Weekly VRDN and Put, 3.03%, 7/01/31 ........................................................................ 750,000 750,000 -------------- 4,050,000 -------------- U.S. TERRITORIES 0.0%(b) (a)Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Series A, AMBAC Insured, Weekly VRDN and Put, 2.93%, 7/01/28 ............................... 100,000 100,000 -------------- TOTAL SHORT TERM INVESTMENTS (COST $4,150,000) ................................................ 4,150,000 -------------- TOTAL INVESTMENTS (COST $293,475,092) 98.8% ................................................... 306,475,582 OTHER ASSETS, LESS LIABILITIES 1.2% ........................................................... 3,871,792 -------------- NET ASSETS 100.0% ............................................................................. $ 310,347,374 ==============
See Selected Portfolio Abbreviations on page 169. (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. (b) Rounds to less than 0.05% of net assets. 20 | See Notes to Statements of Investments. | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN DOUBLE TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 96.3% BONDS 96.3% U.S. TERRITORIES 96.3% Children's Trust Fund Puerto Rico Tobacco Settlement Revenue, Asset-Backed Bonds, Refunding, 5.50%, 5/15/39 .................................................................. $ 5,000,000 $ 5,062,000 Guam International Airport Authority Revenue, Series A, MBIA Insured, 5.25%, 10/01/20 ................................................. 1,725,000 1,861,292 Series A, MBIA Insured, 5.25%, 10/01/22 ................................................. 700,000 752,878 Series B, MBIA Insured, 5.25%, 10/01/22 ................................................. 1,000,000 1,075,540 Series B, MBIA Insured, 5.25%, 10/01/23 ................................................. 1,000,000 1,073,470 Series C, MBIA Insured, 5.25%, 10/01/21 ................................................. 5,000,000 5,195,750 Series C, MBIA Insured, 5.00%, 10/01/23 ................................................. 5,000,000 5,133,150 Guam Power Authority Revenue, Refunding, Series A, MBIA Insured, 5.125%, 10/01/29 ........................................................................ 1,975,000 2,060,004 5.25%, 10/01/34 ......................................................................... 7,000,000 7,384,860 Puerto Rico Commonwealth GO, Public Improvement, MBIA Insured, Pre-Refunded, 5.75%, 7/01/26 .............................................. 3,000,000 3,272,250 Series A, 5.375%, 7/01/28 ............................................................... 1,300,000 1,341,249 Series A, 5.00%, 7/01/29 ................................................................ 4,500,000 4,512,285 Series A, 5.00%, 7/01/34 ................................................................ 5,000,000 4,954,750 Series A, FGIC Insured, 5.125%, 7/01/31 ................................................. 3,315,000 3,464,142 Series A, FGIC Insured, Pre-Refunded, 5.125%, 7/01/31 ................................... 1,685,000 1,822,479 Puerto Rico Commonwealth Highway and Transportation Authority Highway Revenue, Series Y, 5.50%, 7/01/36 ............................................................................. 11,850,000 12,673,101 Puerto Rico Commonwealth Highway and Transportation Authority Revenue, Refunding, Series H, 5.00%, 7/01/35 ..................................................... 100,000 99,081 Series K, 5.00%, 7/01/30 ................................................................ 1,000,000 995,760 Series K, 5.00%, 7/01/35 ................................................................ 5,815,000 5,761,560 Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Series B, Pre-Refunded, 6.00%, 7/01/39 .................................................. 10,000,000 11,164,300 Series D, Pre-Refunded, 5.375%, 7/01/36 ................................................. 11,990,000 13,129,889 Series K, 5.00%, 7/01/40 ................................................................ 8,500,000 8,375,815 Puerto Rico Commonwealth Infrastructure Financing Authority Revenue, Series B, 5.00%, 7/01/37 .................................................................................... 15,000,000 14,858,250 Puerto Rico Commonwealth Infrastructure Financing Authority Special Obligation, Series A, ETM, 5.50%, 10/01/32 ....................................................................... 10,000,000 10,853,100 Puerto Rico Commonwealth Infrastructure Financing Authority Special Revenue, Series A, AMBAC Insured, Pre-Refunded, 5.00%, 7/01/21 ................................... 10,000,000 10,449,500 Refunding, Series C, AMBAC Insured, 5.50%, 7/01/27 ...................................... 1,500,000 1,735,170 Puerto Rico Commonwealth Infrastructure Financing Authority Special Tax Revenue, Series A, AMBAC Insured, Pre-Refunded, 5.00%, 7/01/28 ................................................ 1,000,000 1,044,950 Puerto Rico Commonwealth Infrastructure Financing Authority Special Tax Revenue, Refunding, Series C, AMBAC Insured, 5.50%, 7/01/23 .................................................... 2,500,000 2,867,225 Puerto Rico Electric Power Authority Power Revenue, Series HH, FSA Insured, 5.25%, 7/01/29 .................................................. 1,605,000 1,713,209 Series II, 5.25%, 7/01/31 ............................................................... 15,500,000 16,047,305 Series II, FSA Insured, 5.125%, 7/01/26 ................................................. 1,000,000 1,056,120 Series NN, 5.125%, 7/01/29 .............................................................. 5,125,000 5,258,967 Series NN, MBIA Insured, 5.00%, 7/01/32 ................................................. 4,000,000 4,155,640 Series RR, FGIC Insured, 5.00%, 7/01/35 ................................................. 9,170,000 9,559,358 Series RR, XLCA Insured, 5.00%, 7/01/30 ................................................. 1,725,000 1,796,881
Quarterly Statements of Investments | 21 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN DOUBLE TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) U.S. TERRITORIES (CONT.) Puerto Rico HFAR, Capital Fund Program, 4.60%, 12/01/24 ....................................... $ 10,000,000 $ 10,019,800 Puerto Rico HFC, HMR, MBS, Series A, GNMA Secured, 5.20%, 12/01/33 ............................ 11,160,000 11,327,958 Puerto Rico HFC Revenue, MFM, Portfolio A-I, 7.50%, 10/01/15 ..................................................... 205,000 205,326 MFM, Portfolio A-I, 7.50%, 4/01/22 ...................................................... 590,000 590,425 Sixth Portfolio, Section 8, FHA Insured, Pre-Refunded, 7.75%, 12/01/26 .................. 2,060,000 2,106,412 Puerto Rico Housing Bank and Financing Authority SFMR, Affordable Housing Mortgage, First Portfolio, 6.25%, 4/01/29 ............................................................ 1,915,000 1,942,863 Puerto Rico Industrial Medical and Environmental Pollution Control Facilities Financing Authority Revenue, PepsiCo Inc. Project, 6.25%, 11/15/13 ................................... 900,000 915,165 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 2,535,450 Dr. Pila Hospital Project, Refunding, FHA Insured, 6.25%, 8/01/32 ....................... 500,000 507,200 Hospital Auxilio Mutuo Obligation, Series A, MBIA Insured, 6.25%, 7/01/24 ............... 8,445,000 8,550,731 Mennonite General Hospital Project, 5.625%, 7/01/17 ..................................... 710,000 664,908 Mennonite General Hospital Project, 5.625%, 7/01/27 ..................................... 1,950,000 1,734,857 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 6,725,802 Guaynabo Municipal Government, 5.625%, 7/01/22 .......................................... 3,160,000 3,232,996 Guaynabo Warehouse, Series A, 5.15%, 7/01/19 ............................................ 1,250,000 1,257,150 Guaynabo Warehouse, Series A, 5.20%, 7/01/24 ............................................ 4,120,000 4,134,379 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 2,079,520 Ana G. Mendez University System Project, Refunding, 5.375%, 2/01/29 ..................... 7,850,000 7,914,370 Cogeneration Facility, AES Puerto Rico Project, 6.625%, 6/01/26 ......................... 5,970,000 6,408,556 International American University of Puerto Rico Project, MBIA Insured, 4.25%, 10/01/24 ............................................................................. 1,000,000 985,920 International American University of Puerto Rico Project, MBIA Insured, 4.375%, 10/01/25 ............................................................................. 1,000,000 997,970 International American University of Puerto Rico Project, MBIA Insured, 4.50%, 10/01/29 ............................................................................. 3,750,000 3,733,500 University Plaza Project, Series A, MBIA Insured, 5.00%, 7/01/33 ........................ 6,000,000 6,147,420 Puerto Rico Municipal Finance Agency GO, Series A, FSA Insured, 5.50%, 8/01/23 ................ 7,400,000 7,921,108 Puerto Rico Municipal Finance Agency Revenue, Series A, FSA Insured, 5.00%, 8/01/27 ........... 5,500,000 5,714,005 Puerto Rico PBA Revenue, Guaranteed, Government Facilities, Series D, 5.375%, 7/01/33 ............................................................... 3,430,000 3,551,628 Series D, Pre-Refunded, 5.375%, 7/01/33 ................................................. 9,070,000 9,932,285 Series I, 5.25%, 7/01/33 ................................................................ 4,500,000 4,612,140 Series I, 5.375%, 7/01/34 ............................................................... 5,000,000 5,221,350 Series I, 5.00%, 7/01/36 ................................................................ 4,000,000 3,962,720 Puerto Rico Port Authority Revenue, Series D, FGIC Insured, 6.00%, 7/01/21 .................... 1,250,000 1,252,963 Puerto Rico Public Finance Corp. Revenue, Commonwealth Appropriation, Mandatory Put 2/01/12, Refunding, Series A, MBIA Insured, 5.25%, 8/01/29 ................ 3,000,000 3,234,900 Series A, Pre-Refunded, 5.00%, 6/01/26 .................................................. 2,865,000 3,006,159 Series E, 5.50%, 8/01/29 ................................................................ 2,155,000 2,241,415 Series E, Pre-Refunded, 5.50%, 8/01/29 .................................................. 6,845,000 7,517,384
22 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN DOUBLE TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) U.S. TERRITORIES (CONT.) Virgin Islands HFA, SFR, Refunding, Series A, GNMA Secured, 6.45%, 3/01/16 .......................................................................... $ 160,000 $ 161,480 6.50%, 3/01/25 .......................................................................... 390,000 393,506 Virgin Islands PFAR, Gross Receipts Taxes Loan Note, Radian Insured, 5.00%, 10/01/26 ......................... 5,000,000 5,161,700 Gross Receipts Taxes Loan Note, Radian Insured, 5.00%, 10/01/33 ......................... 9,220,000 9,450,777 Gross Receipts Taxes Loan Note, Refunding, ACA Insured, 5.00%, 10/01/31 ................. 2,500,000 2,551,675 senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/18 ...................... 3,000,000 3,121,950 senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/22 ...................... 6,750,000 7,006,095 senior lien, Fund Loan Notes, Refunding, Series A, 5.625%, 10/01/25 ..................... 3,950,000 4,102,154 senior lien, Matching Fund Loan Note, Series A, 5.25%, 10/01/24 ......................... 2,000,000 2,068,340 Virgin Islands Port Authority Marine Revenue, Series A, FSA Insured, 5.25%, 9/01/18 .......................................................................... 3,930,000 4,128,033 5.00%, 9/01/23 .......................................................................... 10,000,000 10,265,000 Virgin Islands Water and Power Authority Electric System Revenue, Refunding, 5.30%, 7/01/18 ................................................................................. 4,175,000 4,155,878 7/01/21 ................................................................................. 1,000,000 994,720 Virgin Islands Water and Power Authority Water System Revenue, Refunding, 5.25%, 7/01/12 .......................................................................... 4,000,000 4,079,520 5.50%, 7/01/17 .......................................................................... 4,000,000 4,077,400 -------------- TOTAL LONG TERM INVESTMENTS (COST $373,131,358) ............................................... 387,166,243 -------------- SHORT TERM INVESTMENT (COST $7,443,000) 1.9% BONDS 1.9% U.S. TERRITORIES 1.9% (a)Puerto Rico Commonwealth Government Development Bank Revenue, Refunding, MBIA Insured, Weekly VRDN and Put, 2.85%, 12/01/15 ....................................................... 7,443,000 7,443,000 -------------- TOTAL INVESTMENTS (COST $380,574,358) 98.2% ................................................... 394,609,243 OTHER ASSETS, LESS LIABILITIES 1.8% ........................................................... 7,256,760 -------------- NET ASSETS 100.0% ............................................................................. $ 401,866,003 ==============
See Selected Portfolio Abbreviations on page 169. (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 | 23 See Notes to Statements of Investments. | FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 98.0% BONDS 97.5% ALABAMA 6.1% Alabama State GO, Series A, 4.00%, 9/01/12 ................................................................................. $ 2,130,000 $ 2,153,749 9/01/15 ................................................................................. 1,000,000 990,400 Alabama Water Pollution Control Authority Revenue, Revolving Fund Loan, Refunding, Series B, AMBAC Insured, 4.625%, 8/15/13 ......................................................................... 5,900,000 6,152,874 4.125%, 2/15/14 ......................................................................... 3,000,000 3,034,320 East Alabama Health Care Authority Health Care Facilities Revenue, Tax Anticipation Bond, Series A, MBIA Insured, 4.50%, 9/01/13 .......................................................................... 1,925,000 1,986,196 4.625%, 9/01/14 ......................................................................... 2,010,000 2,076,531 4.50%, 9/01/15 .......................................................................... 2,100,000 2,145,024 Huntsville GO, Capital Improvement wts., Series C, AMBAC Insured, 4.00%, 11/01/14 ............. 1,000,000 1,004,010 Huntsville Health Care Authority Revenue, Series A, MBIA Insured, 4.80%, 6/01/13 .......................................................................... 2,400,000 2,508,960 5.00%, 6/01/17 .......................................................................... 2,900,000 3,073,014 Jefferson County GO, Capital Improvement wts., Series A, MBIA Insured, 5.00%, 4/01/17 ......... 2,195,000 2,328,215 Jefferson County Ltd. Obligation School Revenue wts., Series A, 5.25%, 1/01/16 ................ 2,000,000 2,131,180 Sylacauga GO, wts., AMBAC Insured, Pre-Refunded, 5.50%, 6/01/12 ............................... 600,000 655,512 University of Alabama General Revenue, Series A, MBIA Insured, 5.00%, 7/01/15 ................. 4,070,000 4,356,691 -------------- 34,596,676 -------------- ARIZONA 4.4% Arizona School Facilities Board Revenue, Series B, FGIC Insured, 4.00%, 9/01/13 ............... 5,000,000 5,036,200 Arizona State University COP, Research Infrastructure Projects, AMBAC Insured, 5.25%, 9/01/16 .................................................................................... 2,505,000 2,749,363 Maricopa County GO, School District No. 11, Peoria Unified, Refunding, FSA Insured, 4.00%, 7/01/12 .......... 2,200,000 2,236,850 School District No. 40, Glendale School Improvement, 6.10%, 7/01/08 ..................... 570,000 576,885 School District No. 97, Deer Valley School Improvement, Series A, FGIC Insured, 4.75%, 7/01/12 .............................................................................. 4,000,000 4,228,600 Maricopa County Hospital Revenue, Sun Health Corp., 5.00%, 4/01/18 ............................ 2,000,000 2,047,780 Maricopa County USD No. 48 Scottsdale GO, Refunding, Series A, FSA Insured, 4.00%, 7/01/15 .................................................................................... 3,000,000 3,009,420 Maricopa County USD No. 80 Chandler GO, Project of 2002, Series A, FSA Insured, 4.00%, 7/01/14 .................................................................................... 1,000,000 1,006,480 Mesa GO, Refunding, Series A, FGIC Insured, 4.20%, 7/01/16 .................................... 715,000 722,350 Tempe Arizona IDA Lease Revenue, State University Foundation, AMBAC Insured, 4.00%, 7/01/14 ................................................................................. 1,110,000 1,117,193 7/01/15 ................................................................................. 1,000,000 1,002,570 7/01/16 ................................................................................. 1,000,000 998,270 -------------- 24,731,961 -------------- ARKANSAS 1.3% Conway Hospital Revenue, Conway Regional Medical Improvement, Refunding, Series A, 6.20%, 8/01/17 .................................................................................... 1,105,000 1,165,267 Little Rock GO, Capital Improvements, FSA Insured, 4.00%, 4/01/15 ............................. 2,500,000 2,503,400
24 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 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 $ 1,071,170 Student Fee University of Arkansas at Fort Smith, FSA Insured, 4.75%, 12/01/15 .......... 2,295,000 2,394,557 -------------- 7,134,394 -------------- CALIFORNIA 8.3% California State Department of Water Resources Power Supply Revenue, Series A, Pre-Refunded, 5.125%, 5/01/18 .............................................................. 3,000,000 3,296,070 California State GO, Refunding, 5.00%, 2/01/17 ............................................................... 3,000,000 3,151,560 Various Purpose, 5.25%, 11/01/17 ........................................................ 10,000,000 10,720,600 Golden State Tobacco Securitization Corp. Tobacco Settlement Revenue, ETM, 5.00%, 6/01/12 .................................................................................... 1,500,000 1,610,670 Los Angeles Department of Water and Power Waterworks Revenue, Series B, MBIA Insured, 4.25%, 7/01/17 ............................................................................. 6,530,000 6,588,770 Los Angeles USD, GO, Series A, MBIA Insured, 4.125%, 7/01/15 ......................................................................... 2,500,000 2,533,225 4.25%, 7/01/16 .......................................................................... 2,500,000 2,538,775 Los Angeles Wastewater System Revenue, Refunding, MBIA Insured, 4.00%, 6/01/14 ................ 10,000,000 10,129,300 North Orange County Community College District GO, Election of 2002, Series B, FGIC Insured, Pre-Refunded, 4.00%, 8/01/15 ............................................................... 2,000,000 2,039,560 Tulare Joint UHSD, GO, Election of 2004, Series A, MBIA Insured, 5.00%, 8/01/16 ............... 2,870,000 3,122,072 Val Verde USD, COP, Refunding, FGIC Insured, ETM, 5.00%, 1/01/15 .............................. 1,000,000 1,093,740 -------------- 46,824,342 -------------- COLORADO 4.7% Adams County PCR, Public Service Co. of Colorado Project, Refunding, Series A, MBIA Insured, 4.375%, 9/01/17 ............................................................................ 17,000,000 17,167,110 Denver City and County COP, Series B, AMBAC Insured, Pre-Refunded, 5.75%, 12/01/16 ............ 3,000,000 3,330,300 Denver City and County Medical Facilities GO, 4.00%, 8/01/16 .................................. 6,000,000 5,943,240 -------------- 26,440,650 -------------- CONNECTICUT 0.4% Connecticut State HFAR, Housing Mortgage Finance Program, Series C-2, 6.00%, 11/15/10 ................................................................................... 2,000,000 2,060,440 -------------- FLORIDA 8.2% Collier County Capital Improvement Revenue, FGIC Insured, 4.60%, 10/01/13 ..................... 1,000,000 1,042,740 Collier County School Board COP, Refunding, FSA Insured, 5.00%, 2/15/16 ....................... 10,710,000 11,441,493 Florida State Department of Management Services Division Facilities Management Revenue, Florida Facilities Pool, Refunding, Series A, AMBAC Insured, 5.00%, 9/01/17 ................ 5,660,000 6,078,217 Jacksonville Electric Authority Revenue, Electric System, Sub Series A, Pre-Refunded, 5.00%, 10/01/16 ............................................................................ 3,420,000 3,440,417 Jacksonville Water and Sewer System Revenue, Series B, FSA Insured, 4.10%, 10/01/13 ........... 3,000,000 3,011,370 Marion County Public Improvement Revenue, Refunding, MBIA Insured, 4.20%, 12/01/12 ......................................................................... 1,400,000 1,437,548 4.30%, 12/01/13 ......................................................................... 1,800,000 1,845,882
Quarterly Statements of Investments | 25 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) FLORIDA (CONT.) Marion County School Board COP, FSA Insured, 4.00%, 6/01/15 ................................... $ 1,115,000 $ 1,115,714 Orlando Waste Water Services Revenue, Refunding, Series A, AMBAC Insured, 4.00%, 10/01/14 ................................................................................... 7,000,000 7,028,770 Palm Beach County IDR, Lourdes-Noreen McKeen Residence, Geriatric Care Inc. Project, Pre-Refunded, 6.20%, 12/01/08 ......................................................................... 275,000 288,296 6.30%, 12/01/09 ......................................................................... 580,000 608,606 Tampa Bay Water Utility System Revenue, FGIC Insured, Pre-Refunded, 5.75%, 10/01/15 ............................................. 1,000,000 1,114,750 Series B, FGIC Insured, Pre-Refunded, 4.75%, 10/01/15 ................................... 4,140,000 4,399,040 Series B, FGIC Insured, Pre-Refunded, 4.75%, 10/01/16 ................................... 3,400,000 3,612,738 -------------- 46,465,581 -------------- GEORGIA 1.2% Baldwin County Hospital Authority Revenue, Oconee Regional Medical Center, 5.30%, 12/01/13 ................................................................................... 1,020,000 985,228 South Georgia Governmental Services Authority Revenue, FGIC Insured, 5.00%, 1/01/16 ........... 2,650,000 2,865,577 Wayne County Development Authority PCR, ITT Rayonier Inc. Project, Refunding, 6.10%, 11/01/07 ................................................................................... 3,105,000 3,111,024 -------------- 6,961,829 -------------- 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 2,636,600 Kapiolani Health Care, ETM, 5.60%, 7/01/06 .............................................. 500,000 506,595 -------------- 3,143,195 -------------- ILLINOIS 0.8% Chicago Park District GO, Refunding, FGIC Insured, 4.125%, 1/01/14 ............................ 3,125,000 3,169,938 Illinois Health Facilities Authority Revenue, Victory Health Services, Series A, 5.25%, 8/15/09 .................................................................................... 1,170,000 1,162,933 Metropolitan Pier and Exposition Authority Hospitality Facilities Revenue, McCormick Place Convention Center, ETM, 5.75%, 7/01/06 ..................................................... 270,000 273,942 -------------- 4,606,813 -------------- KENTUCKY 0.4% Kentucky Economic Development Finance Authority Hospital System Revenue, Appalachian Regional Health Center Facility, Refunding and Improvement, 5.70%, 10/01/10 ......................................................................... 1,000,000 982,590 5.75%, 10/01/11 ......................................................................... 1,500,000 1,469,430 -------------- 2,452,020 -------------- LOUISIANA 0.7% St. John's Baptist Parish EDR, USX Corp. Project, Refunding, 5.35%, 12/01/13 ................. 4,000,000 4,165,560 -------------- MARYLAND 0.2% Maryland State Health and Higher Educational Facilities Authority Revenue, AMBAC Insured, 5.00%, 7/01/15 ............................................................................. 1,000,000 1,080,960 --------------
26 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MASSACHUSETTS 1.9% 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 $ 3,336,510 Massachusetts State Development Finance Agency Revenue, Loomis Community Project, first mortgage, Refunding, Series A, 5.50%, 7/01/08 ....................................... 1,530,000 1,541,108 Massachusetts State Industrial Finance Agency Resource Recovery Revenue, Ogden Haverhill Project, Refunding, Series A, 5.15%, 12/01/07 ......................................................................... 2,000,000 2,036,260 5.20%, 12/01/08 ......................................................................... 2,000,000 2,031,460 Massachusetts State Industrial Finance Agency Revenue, D'Youville Senior Care, 5.50%, 10/01/12 ................................................................................... 1,745,000 1,820,087 -------------- 10,765,425 -------------- MICHIGAN 6.0% Battle Creek Downtown Development Authority Tax Allocation, MBIA Insured, Pre-Refunded, 5.00%, 5/01/17 ............................................................................. 3,295,000 3,422,648 Chippewa County Hospital Financing Authority Revenue, Chippewa County War Memorial Hospital, Refunding, Series B, 5.30%, 11/01/07 ............................................. 815,000 830,469 Ferris State University Revenue, Refunding, AMBAC Insured, 5.00%, 10/01/18 .................... 2,640,000 2,699,611 Garden City School District GO, Refunding, FSA Insured, 5.00%, 5/01/15 ................................................................................. 1,250,000 1,352,238 5/01/18 ................................................................................. 1,455,000 1,538,823 Gull Lake Community School District GO, School Building and Site, FSA Insured, 5.00%, 5/01/16 .................................................................................... 1,000,000 1,067,810 Jackson Public Schools GO, School Building and Site, Refunding, FSA Insured, 5.00%, 5/01/16 ................................................................................. 1,925,000 2,048,469 5/01/17 ................................................................................. 2,025,000 2,147,492 Michigan State Hospital Finance Authority Revenue, Ascension Health Credit, Series A, MBIA Insured, Pre-Refunded, 6.00%, 11/15/13 ................................................ 1,200,000 1,321,008 Otsego Public Schools District GO, School Building and Site, FSA Insured, 5.00%, 5/01/16 ...... 1,630,000 1,734,548 Saginaw-Midland Municipal Water Supply Corp. Revenue GO, Water Supply System, Refunding, MBIA Insured, 4.25%, 9/01/13 ............................................................... 1,245,000 1,281,690 South Lyon Community Schools GO, Refunding, FSA Insured, 5.00%, 5/01/17 ....................... 4,385,000 4,676,164 Wayne-Westland Community Schools GO, Refunding, 4.50%, 5/01/12 .......................................................................... 1,035,000 1,079,402 4.625%, 5/01/13 ......................................................................... 1,095,000 1,150,637 FSA Insured, 5.00%, 5/01/16 ............................................................. 2,825,000 3,015,151 Western Townships Utilities Authority GO, Refunding, MBIA Insured, 4.75%, 1/01/17 ............. 4,290,000 4,404,800 -------------- 33,770,960 -------------- MINNESOTA 4.4% Chaska ISD No. 112 GO, Refunding, Series A, 5.00%, 2/01/16 .......................................................................... 4,000,000 4,160,880 FSA Insured, 4.00%, 2/01/14 ............................................................. 2,060,000 2,080,085 Minneapolis GO, Various Purpose, 5.00%, 12/01/17 .............................................. 3,000,000 3,164,880 Minneapolis Special School District No. 001 COP, Refunding, Series B, FGIC Insured, 4.625%, 2/01/17 .................................................................................... 1,000,000 1,025,530
Quarterly Statements of Investments | 27 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 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 $ 2,490,064 2/01/15 ................................................................................. 2,425,000 2,570,961 2/01/16 ................................................................................. 2,460,000 2,598,424 Ramsey County GO, Capital Improvement Plan, Series A, 4.75%, 2/01/15 .......................... 2,215,000 2,309,647 Robbinsdale ISD No. 281 GO, Refunding, FSA Insured, 4.00%, 2/01/13 .......................................................................... 2,070,000 2,095,855 4.125%, 2/01/14 ......................................................................... 2,175,000 2,210,996 -------------- 24,707,322 -------------- MISSOURI 1.6% Jackson County Reorganized School District No. 7 Lees Summit GO, School Building, MBIA Insured, 5.00%, 3/01/16 ............................................................... 2,000,000 2,140,540 Lake of the Ozarks Community Bridge Corp. Bridge System Revenue, Pre-Refunded, 5.00%, 12/01/08 ........................................................... 1,940,000 1,987,556 Refunding, 5.00%, 12/01/08 .............................................................. 1,060,000 1,067,293 Southeast Missouri State University System Facilities Revenue, Refunding and Improvement, MBIA Insured, 4.375%, 4/01/12 ......................................................................... 335,000 346,802 4.50%, 4/01/14 .......................................................................... 545,000 562,669 4.60%, 4/01/15 .......................................................................... 1,360,000 1,404,635 4.70%, 4/01/16 .......................................................................... 1,165,000 1,204,249 -------------- 8,713,744 -------------- NEW JERSEY 6.8% 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 2,930,051 Hudson County Improvement Authority Solid Waste Systems Revenue, Refunding, Series 1, 5.90%, 1/01/15 ................................................................... 850,000 854,837 New Jersey State COP, Equipment Lease Purchase, Series A, AMBAC Insured, 5.00%, 6/15/17 .................................................................................... 5,000,000 5,247,600 New Jersey State Educational Facilities Authority Revenue, Higher Education Capital Improvement, Refunding, Series A, FSA Insured, 5.00%, 9/01/18 .............................. 7,750,000 8,279,247 New Jersey State Transportation Trust Fund Authority Revenue, Transportation System, Refunding, Series C, FSA Insured, 4.50%, 12/15/10 ....................................... 10,000,000 10,391,800 Series D, FSA Insured, 5.00%, 6/15/19 ................................................... 10,000,000 10,582,500 -------------- 38,286,035 -------------- NEW YORK 12.6% Liverpool Central School District GO, Refunding, FSA Insured, 5.00%, 7/15/14 .................. 1,560,000 1,664,707 Middletown City School District GO, Refunding, Series A, FSA Insured, 4.00%, 11/01/14 ................................................................................ 1,785,000 1,796,745 11/01/15 ................................................................................ 2,050,000 2,054,858 MTA Commuter Facilities Revenue, Services Contract, Refunding, Series R, ETM, 5.50%, 7/01/11 .................................................................................... 2,215,000 2,357,358 MTA Revenue, Transportation, Series C, 5.00%, 11/15/16 ............................................................... 1,150,000 1,235,261 (a)Series F, 5.00%, 11/15/15 ............................................................... 1,250,000 1,342,150
28 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) NEW YORK (CONT.) MTA Transit Facilities Revenue, Series A, Pre-Refunded, 6.00%, 7/01/15 ........................ $ 1,500,000 $ 1,633,800 New York City GO, Refunding, Series C, MBIA Insured, 5.875%, 8/01/16 ...................................... 5,000 5,510 Refunding, Series H, 5.00%, 8/01/17 ..................................................... 4,330,000 4,543,685 Series C, MBIA Insured, Pre-Refunded, 5.875%, 8/01/16 ................................... 1,245,000 1,385,511 Series F, 4.75%, 1/15/16 ................................................................ 3,000,000 3,091,110 Series H, 5.90%, 8/01/09 ................................................................ 495,000 518,349 Series H, 5.00%, 8/01/16 ................................................................ 3,000,000 3,161,370 Series H, Pre-Refunded, 5.90%, 8/01/09 .................................................. 5,000 5,266 Series I, 5.00%, 8/01/18 ................................................................ 10,000,000 10,464,100 Series J, 6.00%, 8/01/08 ................................................................ 985,000 1,034,664 Series J, Pre-Refunded, 6.00%, 8/01/08 .................................................. 2,015,000 2,123,629 Series O, 5.00%, 6/01/19 ................................................................ 5,000,000 5,234,600 New York City Transitional Finance Authority Revenue, Series C, 4.50%, 2/15/13 ................ 4,500,000 4,674,690 New York State Dormitory Authority Revenue, FHA Insured Mortgage, St. Barnabas, Series B, AMBAC Insured, 4.25%, 8/01/14 .............................................................. 2,355,000 2,394,517 New York State Dormitory Authority Revenues, Mental Health Services Facilities Improvement, Refunding, Series D, 5.60%, 2/15/07 ..................................................... 140,000 143,485 Series D, MBIA Insured, 5.00%, 8/15/17 .................................................. 2,000,000 2,084,100 New York State Energy Research and Development Authority PCR, New York State Electric and Gas, MBIA Insured, 4.10%, 3/15/15 .......................................................... 7,000,000 7,002,940 New York State Thruway Authority Service Contract Revenue, Local Highway and Bridge, Pre-Refunded, 5.75%, 4/01/08 ................................................................................. 500,000 514,080 4/01/09 ................................................................................. 1,150,000 1,182,384 Port Authority of New York and New Jersey Special Obligation Revenue, 3rd Installment, 7.00%, 10/01/07 ................................................................................... 500,000 509,060 Yonkers GO, Refunding, Series A, MBIA Insured, 5.00%, 8/01/17 ....................................... 6,435,000 6,850,379 Series B, FSA Insured, 4.00%, 10/15/16 .................................................. 1,890,000 1,862,085 -------------- 70,870,393 -------------- NORTH CAROLINA 4.5% Asheville Water System Revenue, FSA Insured, Pre-Refunded, 5.25%, 8/01/15 ................................................................................. 915,000 994,029 8/01/17 ................................................................................. 1,020,000 1,108,097 8/01/19 ................................................................................. 1,030,000 1,118,961 Charlotte Water and Sewer System Revenue, 5.00%, 6/01/16 ...................................... 4,000,000 4,243,800 North Carolina Eastern Municipal Power Agency Power System Revenue, Refunding, Series D, 6.00%, 1/01/09 ..................................................... 800,000 825,352 Series D, 6.45%, 1/01/14 ................................................................ 1,000,000 1,098,510 North Carolina Infrastructure Financial Corp. COP, Correctional Facilities Project, Series A, 4.00%, 2/01/17 ............................................................................. 2,715,000 2,671,669 North Carolina Municipal Power Agency No. 1 Catawba Electric Revenue, Refunding, Series B, 6.50%, 1/01/09 ............................................................................. 5,000,000 5,387,800 Rutherford County COP, Refunding, AMBAC Insured, 5.00%, 9/01/17 ............................... 1,275,000 1,346,897 Wake County GO, Public Improvement, 4.50%, 3/01/14 ............................................ 6,400,000 6,646,400 -------------- 25,441,515 --------------
Quarterly Statements of Investments | 29 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) OHIO 8.8% Akron GO, Various Purpose, Refunding and Improvement, MBIA Insured, 4.125%, 12/01/14 ................................................................................... $ 1,000,000 $ 1,014,870 Akron Income Tax Revenue, Community Learning Centers, Series A, FGIC Insured, 4.00%, 12/01/14 ................................................................................... 2,140,000 2,157,484 Allen County GO, AMBAC Insured, 4.75%, 12/01/17 ............................................... 2,180,000 2,268,028 Bowling Green State University of Ohio General Receipts GO, MBIA Insured, 5.00%, 6/01/14 ................................................................................. 2,285,000 2,475,455 6/01/15 ................................................................................. 1,400,000 1,504,090 Butler County GO, MBIA Insured, 4.00%, 12/01/14 ............................................... 1,210,000 1,219,886 Cleveland Municipal School District GO, FSA Insured, 5.00%, 12/01/14 ................................................................................ 1,915,000 2,068,851 12/01/15 ................................................................................ 1,510,000 1,622,268 12/01/16 ................................................................................ 1,400,000 1,496,810 Franklin County Health Care Facilities Revenue, Presbyterian Retirement Services, Refunding, 5.25%, 7/01/08 .......................................................................... 575,000 576,892 5.40%, 7/01/10 .......................................................................... 775,000 778,704 5.50%, 7/01/11 .......................................................................... 500,000 503,590 Kenston Local School District GO, School Improvement, MBIA Insured, 4.00%, 12/01/15 ........... 1,775,000 1,779,562 Lake Ohio Local School District GO, MBIA Insured, 5.20%, 12/01/17 ............................. 2,565,000 2,729,365 Mahoning County Sewer System Revenue, AMBAC Insured, 5.20%, 12/01/14 .......................... 1,360,000 1,451,936 Mason City School District GO, School Improvement, Refunding, FGIC Insured, 5.00%, 12/01/15 ................................................................................... 2,670,000 2,888,086 Ohio State Building Authority Revenue, State Facilities, Administration Building Fund Project, Refunding, Series B, FSA Insured, 4.00%, 10/01/12 ................................. 1,000,000 1,018,510 Ohio State GO, Common Schools, Series B, 4.00%, 9/15/14 ....................................... 8,895,000 8,928,890 Penta Career Center COP, Wood Lucas Sandusky Fulton Ottawa Henry and Hancock Counties, FGIC Insured, 4.00%, 4/01/15 ................................................................................. 1,620,000 1,600,058 4/01/16 ................................................................................. 1,685,000 1,652,783 Southwest Regional Water District Water Revenue, Refunding and Improvement, MBIA Insured, 4.00%, 12/01/13 ................................................................................ 1,020,000 1,032,536 12/01/14 ................................................................................ 1,020,000 1,028,333 University of Akron General Receipts Revenue, FGIC Insured, Pre-Refunded, 5.75%, 1/01/14 .................................................................................... 2,000,000 2,191,500 University of Cincinnati General Receipts Revenue, Series A, AMBAC Insured, 5.00%, 6/01/17 .................................................................................... 3,000,000 3,212,910 Westerville City School District GO, Refunding, MBIA Insured, 5.00%, 12/01/18 ................. 1,000,000 1,063,230 Youngstown GO, AMBAC Insured, 6.125%, 12/01/15 ................................................ 1,275,000 1,490,577 -------------- 49,755,204 -------------- OKLAHOMA 0.3% Okmulgee County Governmental Building Authority Sales Tax Revenue, first mortgage, MBIA Insured, 5.60%, 3/01/10 .......................................................................... 930,000 968,744 6.00%, 3/01/15 .......................................................................... 700,000 749,651 Valley View Hospital Authority Revenue, Valley View Regional Medical Center, Refunding, 5.75%, 8/15/06 ............................................................................. 150,000 151,903 -------------- 1,870,298 --------------
30 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) OREGON 3.8% Clackamas County Hospital Facility Authority Revenue, Willamette View Inc. Project, Refunding, 6.00%, 11/01/06 ............................................................................ $ 260,000 $ 263,502 Emerald Peoples Utility District Revenue, Refunding, Series A, FSA Insured, 4.00%, 11/01/14 ................................................................................ 2,380,000 2,399,207 11/01/15 ................................................................................ 2,475,000 2,481,584 Lane County School District No. 052 Bethel GO, Refunding, FSA Insured, 3.75%, 6/15/12 .......................................................................... 1,000,000 1,006,330 3.75%, 6/15/13 .......................................................................... 1,785,000 1,781,501 3.875%, 6/15/14 ......................................................................... 1,935,000 1,934,284 Oregon State Facilities Authority Revenue, Peacehealth, Series A, AMBAC Insured, 5.00%, 8/01/13 .................................................................................... 2,305,000 2,476,031 Portland GO, Arena, Refunding, Series B, 5.00%, 6/01/16 ....................................... 3,075,000 3,303,226 Salem Water and Sewer Revenue, MBIA Insured, 4.10%, 6/01/16 ............................................................ 1,035,000 1,042,307 Refunding, FSA Insured, 4.375%, 6/01/11 ................................................. 2,160,000 2,248,150 Refunding, FSA Insured, 4.50%, 6/01/12 .................................................. 2,250,000 2,360,925 -------------- 21,297,047 -------------- PENNSYLVANIA 2.2% Allegheny County IDAR, Pollution Control, Refunding, Series A, AMBAC Insured, 4.35%, 12/01/13 ................................................................................... 5,000,000 5,128,950 Clarion County Hospital Authority Revenue, Clarion Hospital Project, Refunding, 5.40%, 7/01/07 .................................................................................... 1,135,000 1,138,167 Pittsburgh Water and Sewer Authority Revenue, Refunding, FSA Insured, 4.00%, 9/01/14 ................................................................................. 4,000,000 4,045,000 9/01/15 ................................................................................. 2,000,000 2,005,180 -------------- 12,317,297 -------------- SOUTH CAROLINA 0.5% Charleston County Resource Recovery Revenue, Foster Wheeler Charleston, Refunding, AMBAC Insured, 5.25%, 1/01/10 .............................................................. 1,000,000 1,057,680 Rock Hill Utility System Revenue, Refunding and Improvement, Series A, FSA Insured, 4.00%, 1/01/14 .................................................................................... 2,000,000 2,015,900 -------------- 3,073,580 -------------- TENNESSEE 0.7% Tennessee State School Board Authority Revenue, Higher Educational Facilities, Second Program, Series A, FSA Insured, Pre-Refunded, 5.00%, 5/01/13 ............................... 3,425,000 3,697,013 -------------- TEXAS 2.7% Edgewood ISD Bexar County GO, Series A, 5.00%, 2/15/16 ................................................................................. 1,225,000 1,302,763 2/15/17 ................................................................................. 1,285,000 1,361,971 Houston Hotel Occupancy Tax and Special Revenue, Convention and Entertainment, Series B, AMBAC Insured, 5.00%, 9/01/11 .............................................................. 6,000,000 6,415,680 Laredo ISD Public Facility Corp. Lease Revenue, Series A, AMBAC Insured, 5.00%, 8/01/15 ................................................. 1,000,000 1,047,020 Series C, AMBAC Insured, 5.00%, 8/01/19 ................................................. 1,000,000 1,047,020
Quarterly Statements of Investments | 31 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 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 $ 2,541,175 Travis County Health Facilities Development Corp. Revenue, Ascension Health Credit, Series A, MBIA Insured, Pre-Refunded, 6.25%, 11/15/17 ...................................... 1,500,000 1,664,970 -------------- 15,380,599 -------------- U.S. TERRITORIES 1.3% Virgin Islands PFAR, senior lien, Refunding, Series A, 5.30%, 10/01/11 ........................ 4,000,000 4,189,400 Virgin Islands Water and Power Authority Water System Revenue, Refunding, 4.875%, 7/01/06 ......................................................................... 700,000 702,506 5.00%, 7/01/09 .......................................................................... 2,400,000 2,448,624 -------------- 7,340,530 -------------- UTAH 0.5% Salt Lake County College Revenue, Refunding, 5.00%, 10/01/19 .............................................................. 2,585,000 2,620,880 Westminster College Project, 5.50%, 10/01/12 ............................................ 340,000 352,995 -------------- 2,973,875 -------------- WASHINGTON 1.5% King County School District No. 406 South Central GO, Refunding, FSA Insured, 5.00%, 12/01/16 ................................................................................... 3,000,000 3,180,450 Washington State GO, Series A, FSA Insured, 5.00%, 7/01/16 .................................... 4,000,000 4,302,240 Washington State Public Power Supply System Revenue, Nuclear Project No. 1, Refunding, Series A, AMBAC Insured, 5.70%, 7/01/09 .................................................... 1,000,000 1,032,920 -------------- 8,515,610 -------------- WEST VIRGINIA 0.1% West Virginia Public Energy Authority Energy Revenue, Morgantown Assn. Project, Series A, 5.05%, 7/01/08 ............................................................................. 475,000 482,605 -------------- TOTAL BONDS (COST $539,910,279) ............................................................... 549,923,473 -------------- STEP-UP BOND (COST $2,818,617) 0.5% CALIFORNIA 0.5% 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 2,736,120 -------------- TOTAL LONG TERM INVESTMENTS (COST $542,728,896) ............................................... 552,659,593 --------------
32 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM INVESTMENT (COST $5,500,000) 1.0% BOND 1.0% TENNESSEE 1.0% (b)Clarksville PBA Revenue, Pooled Financing, Tennessee Municipal Bond Fund, Daily VRDN and Put, 3.03%, 1/01/33 ........................................................................ $ 5,500,000 $ 5,500,000 -------------- TOTAL INVESTMENTS (COST $548,228,896) 99.0% ................................................... 558,159,593 OTHER ASSETS, LESS LIABILITIES 1.0% ........................................................... 5,858,568 -------------- NET ASSETS 100.0% ............................................................................. $ 564,018,161 ==============
See Selected Portfolio Abbreviations on page 169. (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 | 33 See Notes to Statements of Investments. | FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL LIMITED-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 86.2% BONDS 86.2% ALABAMA 0.8% Etowah County Board of Education Special Tax School Warrants, Refunding, FSA Insured, 2.60%, 9/01/08 .................................................................................... $ 250,000 $ 242,962 -------------- ALASKA 5.9% Alaska State Housing Finance Corp. Revenue, General Housing, Series B, MBIA Insured, 3.50%, 6/01/06 .................................................................................... 1,175,000 1,176,234 Kenai Peninsula Boro GO, Center Kenai Peninsula Hospital Service Area, FGIC Insured, 3.25%, 8/01/09 .................................................................................... 500,000 492,365 -------------- 1,668,599 -------------- ARIZONA 4.5% Buckeye UHSD No. 201 GO, School Improvement Project, Series B, MBIA Insured, 3.00%, 7/01/08 .................................................................................... 500,000 493,505 Mohave County Beneficial Interest COP, Mohave Administration Building Project, AMBAC Insured, 3.00%, 1/01/06 ............................................................................. 350,000 349,909 Oro Valley Municipal Property Corp. Revenue, senior lien, Water Project, MBIA Insured, 3.00%, 7/01/08 .................................................................................... 425,000 419,479 -------------- 1,262,893 -------------- CALIFORNIA 3.5% 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 ............................... 1,000,000 981,500 -------------- COLORADO 1.1% Colorado Water Resources and Power Development Authority Revenue, Series B, 3.25%, 9/01/07 .................................................................................... 320,000 319,827 -------------- FLORIDA 3.5% Coral Gables Health Facilities Authority Hospital Revenue, Baptist Health South Florida, FSA Insured, 5.00%, 8/15/09 ................................................................ 750,000 788,633 Jupiter Water Revenue, AMBAC Insured, 3.75%, 10/01/07 ......................................... 105,000 105,825 Marion County Utility System Revenue, Series A, MBIA Insured, 2.00%, 12/01/06 ................. 100,000 98,234 -------------- 992,692 -------------- GEORGIA 1.9% Assn. County Commissioners Leasing Program COP, DeKalb County Public Purpose Project, 2.50%, 12/01/07 ................................................................................... 555,000 542,085 -------------- INDIANA 0.4% Madison Grant Industry School Building Corp. Revenue, First Mortgage, AMBAC Insured, 2.25%, 1/15/06 .................................................................................... 120,000 119,798 -------------- KANSAS 1.4% Johnson County Water District No. 001 Water Revenue, Refunding, 2.50%, 6/01/08 ................ 400,000 388,264 -------------- KENTUCKY 2.1% Anderson County School District Financial Corp. School Building Revenue, Refunding, Series B, 3.80%, 3/01/06 ............................................................................. 120,000 120,154 Breathitt County Justice Center Corp. Revenue, Justice Center Project, MBIA Insured, 3.00%, 10/01/06 ................................................................................... 55,000 54,843 Breathitt County School District Financial Corp. School Building Revenue, Refunding, Second Series, 4.00%, 3/01/07 ..................................................................... 110,000 110,777
34 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL LIMITED-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) KENTUCKY (CONT.) Kentucky State Property and Buildings Commission Revenues, Project No. 80, Refunding, Series A, MBIA Insured, 2.75%, 5/01/08 ..................................................... $ 225,000 $ 220,277 Woodford County School District Financial Corp. School Building Revenue, Refunding, 4.30%, 8/01/06 .................................................................................... 100,000 100,665 -------------- 606,716 -------------- MASSACHUSETTS 0.7% Massachusetts State Development Finance Agency Revenue, Brandeis University, Series K, FGIC Insured, 2.50%, 10/01/07 .............................................................. 200,000 195,400 -------------- MICHIGAN 0.7% Commerce Charter Township Michigan GO, Special Assessment, Series A, FSA Insured, 2.50%, 10/01/06 ................................................................................... 100,000 99,130 Michigan Municipal Bond Authority Revenue, Local Government Loan Project, Series B, AMBAC Insured, 2.75%, 11/01/08 ............................................................. 100,000 97,782 -------------- 196,912 -------------- MINNESOTA 1.7% St. Paul Port Authority Lease Revenue, Office Building at Cedar Street-03-12, 2.50%, 12/01/07 ................................................................................... 500,000 488,505 -------------- MISSISSIPPI 3.4% Mississippi State GO, Capital Improvements Building Fund Arts Project, 3.125%, 11/01/10 ................................................................................... 1,000,000 965,070 -------------- MISSOURI 5.2% Missouri State Development Finance Board Infrastructure Facilities Revenue, Hartman Heritage Center Phase II, AMBAC Insured, 3.00%, 4/01/08 ............................................. 200,000 198,024 Platte County COP, Public Improvements, 2.40%, 10/01/08 ....................................... 200,000 192,678 Springfield COP, Enterprise System Project, 3.85%, 2/01/08 .................................... 50,000 50,410 Springfield Public Building Corp. Leasehold Revenue, Capital Improvement Program, AMBAC Insured, 4.00%, 3/01/09 .............................................................. 1,000,000 1,019,750 -------------- 1,460,862 -------------- NEVADA 6.2% Henderson Local ID Special Assessment, No. T-1, Lake Las Vegas, Refunding, Senior Series A-1, FSA Insured, 3.75%, 8/01/09 ...... 1,260,000 1,272,839 No. T-6, Ltd. Obligation, Refunding, Senior Series A, FSA Insured, 2.85%, 11/01/09 ...... 285,000 273,552 Washoe County Improvement Bonds, Refunding, FSA Insured, 2.50%, 11/01/08 ...................... 215,000 207,645 -------------- 1,754,036 -------------- NEW JERSEY 3.5% Washington Township Board of Education Gloucester County GO, Refunding, MBIA Insured, 2.75%, 2/01/08 ............................................................................. 1,000,000 984,020 -------------- NEW YORK 9.0% New York State Dormitory Authority Revenues, Hospital, Maimonides, MBIA Insured, 3.50%, 8/01/09 ...................................... 300,000 299,991 Non Supported Debt, Cerebral Palsy, Pooled, Series A, Assured Guaranty, 4.00%, 7/01/07 .............................................................................. 710,000 717,320
Quarterly Statements of Investments | 35 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL LIMITED-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) NEW YORK (CONT.) 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 $ 404,140 State Personal Income Tax, Series C-1 Empire State, 2.80%, 12/15/09 ..................... 245,000 233,262 Yonkers GO, Refunding, Series B, MBIA Insured, 3.00%, 8/01/06 ................................. 905,000 903,815 -------------- 2,558,528 -------------- OHIO 6.0% Franklin County Hospital Revenue, Hospital Corp., Refunding, Series C, MBIA Insured, 2.50%, 5/15/08 .................................................................................... 500,000 485,785 Stark County GO, Sewage System, Refunding, AMBAC Insured, 2.50%, 12/01/08 ..................... 370,000 358,108 Sugarcreek Local School District GO, School Improvement, Refunding, MBIA Insured, 2.00%, 12/01/06 ................................................................................... 500,000 491,170 Warren GO, AMBAC Insured, 2.00%, 12/01/06 ..................................................... 365,000 358,554 -------------- 1,693,617 -------------- OKLAHOMA 0.6% Oklahoma County ISD No. 12 Edmond GO, Building, 2.25%, 7/01/06 ................................ 100,000 99,202 Oklahoma Development Finance Authority Lease Revenue, Department of Human Services County Office, AMBAC Insured, 3.25%, 2/01/06 ............................................... 75,000 75,008 -------------- 174,210 -------------- OREGON 0.4% Lake County School District No. 014 GO, Refunding, FSA Insured, 2.50%, 1/15/08 ................ 105,000 102,383 -------------- PENNSYLVANIA 1.4% Lehigh County IDA, PCR, Electrical Utilities Corp. Project, Refunding, AMBAC Insured, 3.125%, 11/01/08 ................................................................................... 150,000 149,276 Pittsburgh Water and Sewer Authority Revenue, Refunding, FSA Insured, 2.65%, 9/01/08 .......... 250,000 243,787 -------------- 393,063 -------------- 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 97,285 -------------- SOUTH CAROLINA 0.3% Florence County GO, Public Improvements, AMBAC Insured, 3.75%, 3/01/08 ........................ 75,000 75,704 -------------- SOUTH DAKOTA 1.3% South Dakota HDA Revenue, Series D, 2.90%, 5/01/09 ............................................ 375,000 360,727 -------------- TEXAS 5.8% Hays County GO, Refunding and Improvement, AMBAC Insured, 3.875%, 8/15/07 ..................... 255,000 257,303 San Antonio Electric and Gas Revenue, System, junior lien, Mandatory Put 12/01/05, 2.20%, 12/01/27 ................................................................................... 1,000,000 1,000,000 Sienna Plantation MUD No. 2 GO, FGIC Insured, 4.75%, 10/01/06 ................................................................................ 70,000 70,853 10/01/07 ................................................................................ 75,000 76,865 10/01/08 ................................................................................ 80,000 82,902 Westador MUD, GO, FSA Insured, 4.00%, 3/01/09 ................................................. 170,000 170,297 -------------- 1,658,220 --------------
36 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL LIMITED-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) U.S. TERRITORIES 1.5% Guam International Airport Authority Revenue, Series A, MBIA Insured, 2.375%, 10/01/08 ........ $ 240,000 $ 229,961 Puerto Rico Commonwealth GO, Public Improvement, Mandatory Put 7/01/08, Refunding, Series C, MBIA Insured, 5.00%, 7/01/28 ..................................................... 200,000 207,964 -------------- 437,925 -------------- UTAH 4.2% Davis County Sales Tax Revenue, Series B, AMBAC Insured, 2.55%, 10/01/08 ...................... 180,000 174,353 Davis County School District GO, Utah School Board Guaranty Program, Refunding, Series B, 3.50%, 6/01/08 ............................................................................. 1,000,000 1,003,550 -------------- 1,177,903 -------------- VIRGINIA 1.0% Virginia Beach Development Authority Public Facility Revenue, Series A, 3.00%, 12/01/07 ....... 300,000 297,528 -------------- WASHINGTON 7.2% Burlington Sewer Revenue, Refunding, MBIA Insured, 2.50%, 9/01/06 ............................. 200,000 198,410 King County School District No. 403 Renton GO, FSA Insured, 3.00%, 12/01/07 ................... 500,000 495,035 Vancouver Water and Sewer Revenue, Refunding, FSA Insured, 5.00%, 6/01/08 ..................... 1,000,000 1,039,080 Washington COP, Equipment, Series C, 2.00%, 1/01/06 ........................................... 100,000 99,865 Yakima Tieton Irrigation District Revenue, Refunding, FSA Insured, 2.50%, 6/01/06 ............. 200,000 198,986 -------------- 2,031,376 -------------- WEST VIRGINIA 0.7% West Virginia State Hospital Finance Authority Hospital Revenue, West Virginia University Hospital, Refunding, FSA Insured, 2.50%, 6/01/07 ........................................... 205,000 200,894 -------------- TOTAL LONG TERM INVESTMENTS (COST $24,853,436) ................................................ 24,429,504 -------------- SHORT TERM INVESTMENTS 12.8% BONDS 12.8% CALIFORNIA 3.5% Val Verde USD, COP, School Construction Project, Refunding, Series B, FGIC Insured, 4.00%, 1/01/06 .................................................................................... 1,000,000 1,000,600 -------------- COLORADO 5.3% Denver City and County COP, Human Services Center Project, Refunding, MBIA Insured, 4.00%, 5/01/06 .................................................................................... 1,500,000 1,504,785 -------------- MICHIGAN 3.6% Michigan State GO, Series A, 4.50%, 9/29/06 ................................................... 1,000,000 1,009,640 -------------- NORTH CAROLINA 0.4% (a)North Carolina Medical Care Commission Hospital Revenue, Lexington Memorial Hospital Project, Refunding, Daily VRDN and Put, 2.95%, 4/01/10 ..................................... 100,000 100,000 -------------- TOTAL SHORT TERM INVESTMENTS (COST $3,619,315) ................................................ 3,615,025 -------------- TOTAL INVESTMENTS (COST $28,472,751) 99.0% .................................................... 28,044,529 OTHER ASSETS, LESS LIABILITIES 1.0% ........................................................... 272,687 -------------- NET ASSETS 100.0% ............................................................................. $ 28,317,216 ==============
See Selected Portfolio Abbreviations on page 169. (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 | 37 See Notes to Statements of Investments. | FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FLORIDA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 97.9% BONDS 97.9% FLORIDA 97.9% Alachua County Public Improvement Revenue, AMBAC Insured, 5.25%, 8/01/29 ...................... $ 2,500,000 $ 2,631,150 Alachua County School Board COP, AMBAC Insured, 5.00%, 7/01/20 ................................ 1,000,000 1,056,080 Broward County HFAR, FSA Insured, 5.65%, 11/01/22 ......................................................................... 405,000 412,233 5.70%, 11/01/29 ......................................................................... 225,000 228,895 Broward County School Board COP, MBIA Insured, 5.00%, 7/01/28 ............................................................ 2,000,000 2,073,900 Series A, FSA Insured, 5.00%, 7/01/22 ................................................... 2,000,000 2,085,160 Series A, FSA Insured, 5.00%, 7/01/26 ................................................... 2,850,000 2,959,782 Series A, FSA Insured, 5.00%, 7/01/29 ................................................... 1,000,000 1,038,510 Series A, FSA Insured, 5.00%, 7/01/30 ................................................... 2,000,000 2,059,760 Coral Gables Health Facilities Authority Hospital Revenue, Baptist Health South Florida, FSA Insured, 5.00%, 8/15/29 ................................................................ 1,500,000 1,545,750 Dade County HFA, MFMR, Siesta Pointe Apartments, Series A, FSA Insured, 5.75%, 9/01/29 .................................................................................... 1,890,000 1,926,666 Dade County Water and Sewer System Revenue, FGIC Insured, 5.25%, 10/01/21 ..................... 1,000,000 1,038,710 Daytona Beach Utility System Revenue, Refunding, Series B, FGIC Insured, 5.00%, 11/15/32 ................................................................................... 1,000,000 1,035,090 Destin Capital Improvement Revenue, MBIA Insured, 5.00%, 8/01/27 .............................. 1,315,000 1,369,204 Escambia County HFA, SFMR, Multi County Program, Series A, MBIA Insured, 6.40%, 10/01/30 ................................................................................... 140,000 140,809 Escambia County Utilities Authority Utility System Revenue, FGIC Insured, 5.00%, 1/01/31 ............................................................ 1,775,000 1,818,825 Refunding, Series B, FGIC Insured, 5.00%, 1/01/22 ....................................... 2,000,000 2,084,920 Florida HFAR, Spinnaker Cove Apartments, Series G, AMBAC Insured, 6.50%, 7/01/36 .............. 1,600,000 1,645,136 Florida HFC Revenue, Housing Logans Pointe Apartments, Series F-1, FSA Insured, 5.90%, 12/01/19 .............. 1,205,000 1,266,660 Marina Bay Apartments, Series S, FSA Insured, 5.85%, 2/01/41 ............................ 1,070,000 1,110,810 Florida Intergovernmental Finance Commission Capital Revenue, Series A, AMBAC Insured, 5.00%, 8/01/32 ............................................................................. 3,570,000 3,677,671 Florida State Board of Education GO, Series F, MBIA Insured, 5.00%, 6/01/28 ................... 2,000,000 2,079,720 Florida State Board Regent Housing Revenue, University of Florida, FGIC Insured, 5.25%, 7/01/30 .................................................................................... 2,000,000 2,165,480 Florida State Correctional Privatization Commission COP, Series B, AMBAC Insured, 5.00%, 8/01/25 .................................................................................... 2,000,000 2,092,820 Florida State Department of Environmental Protection Preservation Revenue, Florida Forever, Series A, MBIA Insured, 5.00%, 7/01/21 ..................................................... 3,000,000 3,148,260 Florida State Department of General Services Division Facilities Management Revenue, Florida Facilities Pool, Series B, FSA Insured, 5.50%, 9/01/28 ..................................... 550,000 595,452 Gulf Breeze Revenue, FGIC Insured, 5.80%, 12/01/20 ........................................................... 1,250,000 1,375,988 Local Government Loan Program, FGIC Insured, 6.05%, 12/01/15 ............................ 1,915,000 1,984,744 Hillsborough County IDA, PCR, Tampa Electric Co. Project, Refunding, MBIA Insured, 6.25%, 12/01/34 ................................................................................... 1,500,000 1,545,000 Hillsborough County School Board COP, MBIA Insured, 5.00%, 7/01/26 .......................................................................... 1,670,000 1,746,202 Pre-Refunded, 5.375%, 7/01/26 ........................................................... 1,000,000 1,066,580
38 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FLORIDA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) FLORIDA (CONT.) Indian Trail Water Control District Improvement Revenue, MBIA Insured, 5.75%, 8/01/16 ......... $ 1,090,000 $ 1,129,698 Jacksonville Capital Improvement Revenue, Refunding, Series C, AMBAC Insured, 5.00%, 10/01/25 ................................................................................... 4,000,000 4,166,200 Jacksonville Guaranteed Entitlement Revenue, Refunding and Improvement, FGIC Insured, 5.00%, 10/01/32 ............................................................................ 1,000,000 1,032,590 Jacksonville Sales Tax Revenue, Better Jacksonville, MBIA Insured, 5.00%, 10/01/30 ............ 1,500,000 1,556,910 Jacksonville Transportation Revenue, MBIA Insured, 5.00%, 10/01/26 ............................ 2,000,000 2,069,240 Jacksonville Water and Sewer Revenue, United Water Project, AMBAC Insured, 6.35%, 8/01/25 .................................................................................... 1,000,000 1,025,560 Lake County School Board COP, Series A, AMBAC Insured, 5.00%, 6/01/30 ......................... 2,080,000 2,153,091 Lee County Airport Revenue, Series B, FSA Insured, 5.75%, 10/01/33 ............................ 4,000,000 4,327,880 Lee County IDA Utilities Revenue, Bonita Springs Utilities Project, Refunding, MBIA Insured, 6.05%, 11/01/15 ................................................................................ 2,000,000 2,063,100 11/01/20 ................................................................................ 1,500,000 1,542,030 Lynn Haven Capital Improvement Revenue, MBIA Insured, Pre-Refunded, 5.50%, 12/01/32 ........... 2,000,000 2,197,500 Marion County Utility System Revenue, FGIC Insured, 5.00%, 12/01/31 ........................... 1,500,000 1,549,080 Miami Beach Water and Sewer Revenue, AMBAC Insured, 5.00%, 9/01/30 ............................ 3,000,000 3,097,860 Miami-Dade County Aviation Revenue, Miami International Airport, Hub, Series B, FGIC Insured, 5.00%, 10/01/30 ............................................ 3,500,000 3,620,890 Series A, CIFG Insured, 5.00%, 10/01/38 ................................................. 1,625,000 1,642,485 Series B, FGIC Insured, 5.75%, 10/01/29 ................................................. 2,500,000 2,716,375 Miami-Dade County Public Facilities Revenue, Jackson Health System, Series A, MBIA Insured, 5.00%, 6/01/31 ................................................................................. 1,650,000 1,690,079 6/01/35 ................................................................................. 2,000,000 2,047,040 Nassau County Public Improvement Revenue, MBIA Insured, 5.00%, 5/01/31 ........................ 5,000,000 5,130,650 Ocala Utility System Revenue, Refunding, Series A, FGIC Insured, 5.00%, 10/01/31 .............. 2,000,000 2,078,560 Ocoee Water and Sewer System Revenue, AMBAC Insured, 5.625%, 10/01/26 ......................... 4,220,000 4,378,081 Orange County School Board COP, AMBAC Insured, 5.50%, 8/01/25 ................................. 1,000,000 1,075,840 Orange County Tourist Development Tax Revenue, AMBAC Insured, 5.50%, 10/01/32 ......................................................................... 2,000,000 2,146,360 Pre-Refunded, 5.50%, 10/01/22 ........................................................... 1,000,000 1,075,370 Pre-Refunded, 5.50%, 10/01/31 ........................................................... 2,500,000 2,688,425 Osceola County HFA, MFHR, Tierra Vista Apartment Project, Series A, FSA Insured, 5.70%, 12/01/17 ................................................................................... 480,000 486,754 Osceola County Tourist Development Tax Revenue, FGIC Insured, 5.00%, 10/01/32 ................. 3,000,000 3,092,430 Palm Beach County IDR, South Florida Fair Project, AMBAC Insured, 5.50%, 6/01/31 .............. 2,000,000 2,121,300 Palm Beach County Public Improvement Revenue, Convention Center Project, FGIC Insured, Pre-Refunded, 5.125%, 11/01/30 ............................................................. 2,000,000 2,166,420 Palm Beach County School Board COP, Series A, AMBAC Insured, 5.125%, 8/01/24 .......................................................... 5,000,000 5,274,750 FGIC Insured, Pre-Refunded, 6.00%, 8/01/22 .............................................. 3,000,000 3,340,890 Panama City Beach Utility Revenue, Refunding, AMBAC Insured, 5.00%, 6/01/32 ................... 2,000,000 2,066,820 Pasco County School Board COP, Series A, AMBAC Insured, 5.00%, 8/01/30 ........................ 2,750,000 2,850,017 Pembroke Pines Public Improvement Revenue, Series A, AMBAC Insured, 5.00%, 10/01/29 ................................................ 2,000,000 2,072,020 Series B, AMBAC Insured, 5.00%, 10/01/34 ................................................ 2,000,000 2,072,020
Quarterly Statements of Investments | 39 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FLORIDA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) FLORIDA (CONT.) Pinellas County Sewer Revenue, FSA Insured, 5.00%, 10/01/32 ................................... $ 3,000,000 $ 3,103,800 Polk County Capital Improvement Revenue, FSA Insured, Pre-Refunded, 5.75%, 12/01/21 ........... 1,000,000 1,110,100 Polk County Public Facilities Revenue, MBIA Insured, 5.00%, 12/01/33 .......................... 2,000,000 2,071,600 Polk County School Board COP, Series A, FSA Insured, 5.00%, 1/01/26 ........................... 1,000,000 1,033,790 Polk County Utility System Revenue, Series A, FGIC Insured, 5.00%, 10/01/30 ................................................................................ 1,000,000 1,040,450 10/01/34 ................................................................................ 2,000,000 2,072,020 Port St. Lucie GO, MBIA Insured, 5.00%, 7/01/32 ............................................... 2,000,000 2,066,000 St. Augustine Capital Improvement Revenue, Refunding, AMBAC Insured, 5.00%, 10/01/29 ................................................................................... 1,250,000 1,302,413 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 5,327,600 St. Lucie West Services District Utility Revenue, senior lien, MBIA Insured, 6.125%, 10/01/32 ................................................................................... 2,240,000 2,514,243 Tavares Water and Sewer Revenue, AMBAC Insured, 5.50%, 10/01/30 ............................... 1,000,000 1,064,230 University of Central Florida COP, University of Central Florida Convocation Corp., Series A, FGIC Insured, 5.00%, 10/01/35 .............................................................. 1,500,000 1,538,535 -------------- TOTAL LONG TERM INVESTMENTS (COST $150,450,506) ............................................... 158,995,063 -------------- SHORT TERM INVESTMENTS 1.2% BONDS 1.2% FLORIDA 1.2% (a)Jacksonville Health Facilities Authority Hospital Revenue, Baptist Medical Center Project, Daily VRDN and Put, 2.95%, 8/15/21 ...................... 500,000 500,000 Series C, Daily VRDN and Put, 2.95%, 8/15/33 ............................................ 500,000 500,000 (a)Orange County School Board COP, Series B, AMBAC Insured, Daily VRDN and Put, 3.00%, 8/01/25 .................................................................................... 815,000 815,000 (a)Pinellas County Health Facilities Authority Revenue, Pooled Hospital Loan Program, Refunding, AMBAC Insured, Daily VRDN and Put, 3.00%, 12/01/15 ......................................... 200,000 200,000 -------------- TOTAL SHORT TERM INVESTMENTS (COST $2,015,000) ................................................ 2,015,000 -------------- TOTAL INVESTMENTS (COST $152,465,506) 99.1% ................................................... 161,010,063 OTHER ASSETS, LESS LIABILITIES 0.9% ........................................................... 1,517,680 -------------- NET ASSETS 100.0% ............................................................................. $ 162,527,743 ==============
See Selected Portfolio Abbreviations on page 169. (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. 40 | See Notes to Statements of Investments. | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FLORIDA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 98.9% BONDS 92.9% FLORIDA 86.7% Alachua County Health Facilities Authority Revenue, Shands Teaching Hospital, Series A, MBIA Insured, 5.80%, 12/01/26 ............................................................. $ 10,000,000 $ 10,414,900 Alachua County School Board COP, AMBAC Insured, 5.00%, 7/01/21 ............................... 2,000,000 2,106,260 Bay County Water System Revenue, Refunding, AMBAC Insured, 5.00%, 9/01/29 .................... 2,000,000 2,087,640 Brevard County Health Facilities Authority Health Care Facilities Revenue, Health First Inc. Project, MBIA Insured, 5.00%, 4/01/26 ..................................................... 5,000,000 5,158,150 Brevard County School Board COP, AMBAC Insured, 5.00%, 7/01/26 .......................................................... 10,000,000 10,356,200 Refunding, Series A, AMBAC Insured, 5.40%, 7/01/11 ..................................... 4,415,000 4,782,725 Series A, FGIC Insured, 5.00%, 7/01/30 ................................................. 4,500,000 4,645,620 Broward County Educational Facilities Authority Revenue, Educational Facilities, Nova Southeastern, Series B, 5.60%, 4/01/29 .................................................... 3,180,000 3,323,768 Broward County Health Facilities Authority Revenue, Catholic Health Services, Refunding, 5.50%, 8/15/20 ............................................................................ 9,360,000 9,807,127 Broward County HFA, MFHR, Bridgewater Place Apartments Project, Series A, 5.45%, 10/01/34 ........................ 3,000,000 3,044,550 Cross Keys Apartments Project, Series A, 5.80%, 10/01/33 ............................... 1,980,000 2,014,729 Cross Keys Apartments Project, Series A, 5.85%, 4/01/39 ................................ 5,740,000 5,830,864 Stirling Apartments Phase II, Series A, 5.35%, 10/01/29 ................................ 1,000,000 1,008,790 Stirling Apartments Phase II, Series A, 5.40%, 4/01/39 ................................. 2,000,000 2,009,940 Broward County HFAR, Series D, 6.90%, 6/01/09 ......................................................................... 40,000 40,148 7.375%, 6/01/21 ........................................................................ 205,000 205,761 Broward County Professional Sports Facilities Tax Revenue, Civic Arena Project, Series A, MBIA Insured, 5.75%, 9/01/21 ......................................................................... 5,000,000 5,134,250 5.625%, 9/01/28 ........................................................................ 10,000,000 10,259,400 Broward County School Board COP, Series A, FSA Insured, 5.00%, 7/01/26 ................................................................................ 21,500,000 22,328,180 7/01/29 ................................................................................ 4,680,000 4,860,227 7/01/30 ................................................................................ 5,000,000 5,149,400 Cape Canaveral Hospital District Revenue COP, Refunding, 5.25%, 1/01/28 ...................... 3,500,000 3,556,210 Celebration CDD, Special Assessment, Series A, MBIA Insured, 5.50%, 5/01/18 .................. 1,460,000 1,515,611 Citrus County Hospital Board Revenue, Citrus Memorial Hospital, Refunding, 6.25%, 8/15/23 ................................................................................... 9,895,000 10,597,842 Clearwater MFR, Rental Housing, Drew Gardens Projects, Refunding, Series A, FHA Insured, 6.50%, 10/01/25 ........................................................................... 2,495,000 2,497,470 Clermont Water and Sewer Revenue, Refunding, FSA Insured, 5.375%, 12/01/30 ................... 5,000,000 5,288,900 Crossing At Fleming Island CDD, Florida Special Assessment Revenue, Refunding, Series B, MBIA Insured, 5.80%, 5/01/16 .............................................................. 5,980,000 6,554,738 Dade County Aviation Revenue, Miami International Airport, Series B, FSA Insured, 5.125%, 10/01/22 ................................................ 4,750,000 4,867,942 Series C, FSA Insured, 5.125%, 10/01/27 ................................................ 9,550,000 9,864,577 Dade County Water and Sewer System Revenue, FGIC Insured, 5.25%, 10/01/26 .................... 13,000,000 13,491,530 Daytona Beach Utility System Revenue, Refunding, Series B, FGIC Insured, 5.00%, 11/15/32 .................................................................................. 3,250,000 3,364,043
Quarterly Statements of Investments | 41 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FLORIDA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) FLORIDA (CONT.) Duval County HFA, MFHR, Mortgage, Eagles Point North, Series A, MBIA Insured, 5.60%, 7/01/17 ......................................................................... $ 1,000,000 $ 1,031,500 5.70%, 7/01/27 ......................................................................... 2,000,000 2,046,180 Enterprise CDD, Water and Sewer Revenue, MBIA Insured, 5.50%, 5/01/26 ........................ 3,000,000 3,188,730 Escambia County Health Facilities Authority Health Facility Revenue, Baptist Hospital and Baptist Manor, 5.125%, 10/01/19 ................................... 8,750,000 8,919,575 Florida Health Care Facility Loan VHA Project, AMBAC Insured, 5.95%, 7/01/20 ........... 1,235,000 1,330,033 Escambia County Health Facilities Authority Revenue, Ascension Health Credit, Series A-2, AMBAC Insured, Pre-Refunded, 5.75%, 11/15/29 .............................................. 25,000,000 27,292,500 Escambia County HFA Dormitory Revenue, University of West Florida Foundation Inc. Project, Refunding, MBIA Insured, 5.00%, 6/01/31 ................................................... 6,580,000 6,770,294 Escambia County HFA, SFMR, Multi County Program, Series A, MBIA Insured, 6.40%, 10/01/30 .................................................................................. 1,000,000 1,005,780 First Florida Governmental Financing Commission Revenue, AMBAC Insured, Pre-Refunded, 5.75%, 7/01/16 ............................................................................ 3,700,000 3,790,391 Florida HFAR, General Mortgage, Refunding, Series A, FHA Insured, 6.40%, 6/01/24 ..................... 240,000 241,152 Homeowner Mortgage, Series 1, MBIA Insured, 5.625%, 7/01/17 ............................ 2,705,000 2,801,028 MFH, Driftwood Terrace Project, Series I, 7.65%, 12/20/31 .............................. 3,275,000 3,280,862 Reserve at Kanapaha, Series G, AMBAC Insured, 5.70%, 7/01/37 ........................... 5,000,000 5,109,700 Reserve at Northshore, Series H, AMBAC Insured, 5.70%, 5/01/37 ......................... 2,000,000 2,047,580 Riverfront Apartments, Series A, AMBAC Insured, 6.25%, 4/01/37 ......................... 1,300,000 1,344,109 Florida HFC Revenue, Brenwood Trace Apartments, Series E-1, FSA Insured, 5.65%, 6/01/19 ..................... 1,245,000 1,301,224 Brenwood Trace Apartments, Series E-1, FSA Insured, 5.80%, 12/01/38 .................... 4,965,000 5,160,571 Deer Meadows Apartments, Series R, FNMA Insured, 6.00%, 5/01/32 ........................ 3,505,000 3,683,965 Homeowner Mortgage, Series 4, FSA Insured, 6.25%, 7/01/22 .............................. 2,215,000 2,241,203 Housing-Waverly Apartments, Series C-1, FSA Insured, 6.50%, 7/01/40 .................... 3,000,000 3,186,750 Florida Intergovernmental Finance Commission Capital Revenue, Series C-1, AMBAC Insured, 5.00%, 2/01/21 ............................................................................ 1,355,000 1,411,720 Florida Municipal Loan Council Revenue, Series B, MBIA Insured, Pre-Refunded, 5.75%, 11/01/29 .................................................................................. 1,500,000 1,642,155 Florida Ports Financing Commission Revenue, State Transportation Trust Fund, Intermodal Program, FGIC Insured, 5.50%, 10/01/23 .................................................... 7,000,000 7,372,470 Florida State Board of Education Capital Outlay GO, Public Education, Refunding, Series D, 5.75%, 6/01/22 .................................................... 25,900,000 28,151,487 Refunding, Series D, 6.00%, 6/01/23 .................................................... 15,000,000 18,174,450 Refunding, Series G, FGIC Insured, 5.00%, 6/01/31 ...................................... 5,000,000 5,173,500 Series C, FGIC Insured, Pre-Refunded, 5.75%, 6/01/29 ................................... 5,000,000 5,499,800 Series F, FGIC Insured, Pre-Refunded, 5.50%, 6/01/26 ................................... 10,000,000 10,211,500 Florida State Board of Education GO, Series F, MBIA Insured, 5.00%, 6/01/28 .................. 20,000,000 20,797,200 Florida State Board of Education Lottery Revenue, Series A, FGIC Insured, 5.00%, 7/01/20 ................................................................................... 7,000,000 7,453,250 Florida State Board of Education Public Education GO, Refunding, Series C, AMBAC Insured, 5.00%, 6/01/34 ............................................................................ 15,000,000 15,574,050
42 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FLORIDA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) FLORIDA (CONT.) Florida State Board Regent Housing Revenue, University of Central Florida, AMBAC Insured, 5.75%, 10/01/29 .......................... $ 8,650,000 $ 9,351,342 University of Florida, FGIC Insured, 5.75%, 7/01/25 .................................... 3,400,000 3,752,580 University of Florida, FGIC Insured, 5.25%, 7/01/30 .................................... 2,060,000 2,230,444 Florida State Department of Environmental Protection Preservation Revenue, Florida Forever, Series A, MBIA Insured, 5.00%, 7/01/21 .................................................... 4,000,000 4,197,680 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 10,826,400 Florida State Department of Transportation GO, Right of Way, Series A, 4.75%, 7/01/24 ........ 6,000,000 6,161,400 Florida State Education System Facility Revenue, Florida State University Housing, Refunding, Series A, MBIA Insured, 5.00%, 5/01/31 .................................................... 11,730,000 12,212,572 Florida State Mid-Bay Bridge Authority Revenue, Exchangeable, Refunding, Series D, 6.10%, 10/01/22 ..................................... 13,695,000 14,201,715 Exchangeable, Series A, 5.95%, 10/01/13 ................................................ 11,320,000 12,085,119 Exchangeable, Series A, 6.05%, 10/01/22 ................................................ 7,000,000 7,276,920 Exchangeable, Series D, ETM, 6.10%, 10/01/22 ........................................... 3,545,000 4,205,540 Series A, ETM, 6.875%, 10/01/22 ........................................................ 6,000,000 7,717,500 Florida State Municipal Power Agency Revenue, Stanton II Project, Refunding, AMBAC Insured, 5.00%, 10/01/26 ............................................................ 5,000,000 5,198,750 Florida State Turnpike Authority Turnpike Revenue, Department of Transportation, Series B, 5.00%, 7/01/30 ............................................................................ 3,455,000 3,544,312 Fort Pierce Utilities Authority Revenue, AMBAC Insured, 5.00%, 10/01/27 ...................... 7,000,000 7,244,790 Gainesville Utilities Systems Revenue, Series A, 5.20%, 10/01/26 ............................. 7,590,000 7,801,913 Gateway Services District Revenue, Transportation Roadway Service Charges, 8.75%, 5/01/14 ................................................................................... 2,425,000 2,455,119 Hialeah Housing Authority Revenue, Affordable Housing Program, Refunding, GNMA Secured, 5.30%, 12/20/18 ............................................................. 1,240,000 1,309,316 Highlands County Health Facilities Authority Revenue, Adventist Health Systems, 5.25%, 11/15/20 ........................................................................ 10,000,000 10,300,500 Series A, 6.00%, 11/15/31 .............................................................. 16,000,000 17,266,400 Hillsborough County Assessment Revenue, Capacity Assessment Special, FSA Insured, 5.125%, 3/01/20 ........................................................................... 1,000,000 1,065,720 Hillsborough County Aviation Authority Revenue, Tampa International Airport, Series B, FGIC Insured, Pre-Refunded, 5.875%, 10/01/23 .............................................. 5,000,000 5,206,950 Hillsborough County HFA Mortgage Revenue, SF, Series A, GNMA Secured, 5.875%, 4/01/30 ................................................................................... 1,705,000 1,744,931 Hillsborough County IDA, PCR, Tampa Electric Co. Project, Refunding, 5.50%, 10/01/23 ......... 16,000,000 16,672,160 Hillsborough County IDAR, Tampa General Hospital Project, Refunding, Series B, 5.40%, 10/01/28 .................................................................................. 7,000,000 7,275,380 Hillsborough County School Board COP, Master Lease Program, Series A, MBIA Insured, 5.375%, 7/01/21 .......................... 5,000,000 5,261,650 Master Lease Program, Series A, MBIA Insured, 5.25%, 7/01/22 ........................... 5,000,000 5,233,850 MBIA Insured, 5.00%, 7/01/26 ........................................................... 8,330,000 8,710,098 MBIA Insured, 5.00%, 7/01/29 ........................................................... 10,000,000 10,324,000 MBIA Insured, Pre-Refunded, 5.375%, 7/01/26 ............................................ 8,000,000 8,532,640 Series B, MBIA Insured, 5.125%, 7/01/26 ................................................ 5,000,000 5,242,600
Quarterly Statements of Investments | 43 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 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 $ 1,037,480 Jacksonville Capital Improvement Revenue, Refunding, Series C, AMBAC Insured, 5.00%, 10/01/25 .................................... 3,460,000 3,603,763 Series A, AMBAC Insured, 5.00%, 10/01/30 ............................................... 10,000,000 10,249,000 Jacksonville Electric Authority Revenue, Water and Sewer, Series B, FGIC Insured, 5.40%, 10/01/20 .................................................................................. 3,000,000 3,077,760 Jacksonville Guaranteed Entitlement Revenue, Refunding and Improvement, FGIC Insured, 5.00%, 10/01/32 ........................................................................... 17,250,000 17,812,177 Jacksonville Sales Tax Revenue, AMBAC Insured, 5.00%, 10/01/23 ............................... 5,000,000 5,212,300 Jacksonville Transportation Revenue, MBIA Insured, 5.25%, 10/01/29 ........................................................................ 17,955,000 18,966,226 5.00%, 10/01/31 ........................................................................ 25,000,000 25,697,000 Jacksonville Water and Sewer System Revenue, Refunding, Series A, MBIA Insured, 5.00%, 10/01/25 .................................................................................. 1,500,000 1,560,675 Kissimmee Water and Sewer Revenue, Refunding, AMBAC Insured, ETM, 6.00%, 10/01/15 .................................................................................. 5,000,000 5,015,100 Lakeland Hospital System Revenue, Lakeland Regional Health System, 5.75%, 11/15/27 ........................................................................ 6,925,000 7,410,027 5.50%, 11/15/32 ........................................................................ 12,070,000 12,711,883 Series A, MBIA Insured, 5.50%, 11/15/26 ................................................ 10,000,000 10,545,200 Lee County Airport Revenue, Series A, FSA Insured, 6.00%, 10/01/32 ........................... 11,405,000 12,406,131 Lee County Hospital Board of Directors Hospital Revenue, Lee Memorial Health System, Series A, MBIA Insured, Pre-Refunded, 5.875%, 4/01/24 ..................................... 18,000,000 18,962,820 Lee County IDA Health Care Facilities Revenue, Shell Point Village Project, Refunding, Series A, 5.50%, 11/15/29 ................................................... 4,000,000 4,046,280 Series A, 5.50%, 11/15/21 .............................................................. 7,500,000 7,632,675 Lee County School Board COP, Series A, FSA Insured, 5.00%, 8/01/28 ........................... 7,500,000 7,808,550 Lee Memorial Health System Hospital Revenue, Refunding, Series A, MBIA Insured, 5.00%, 4/01/24 ................................................................................... 20,390,000 21,189,492 Lessburg Hospital Revenue, Leesburg Regional Medical Center Project, 5.50%, 7/01/32 .......... 4,150,000 4,278,899 Manatee County School Board COP, MBIA Insured, Pre-Refunded, 6.125%, 7/01/21 ................. 5,575,000 5,777,707 Marion County Utility System Revenue, FGIC Insured, 5.00%, 12/01/31 .......................................................... 5,000,000 5,163,600 MBIA Insured, 5.00%, 12/01/28 .......................................................... 5,000,000 5,210,450 Melbourne Water and Sewer Revenue, FGIC Insured, 5.25%, 10/01/30 ............................. 6,000,000 6,315,720 Miami Beach Special Obligation, Subordinated, FGIC Insured, ETM, 7.375%, 12/01/08 ............ 1,140,000 1,165,365 Miami Beach Water and Sewer Revenue, AMBAC Insured, 5.00%, 9/01/30 ........................... 7,000,000 7,228,340 Miami-Dade County Aviation Revenue, Miami International Airport, FGIC Insured, 5.375%, 10/01/27 ......................................................... 5,000,000 5,260,200 FGIC Insured, 5.375%, 10/01/32 ......................................................... 5,000,000 5,203,550 HUB, Series B, FGIC Insured, 5.00%, 10/01/30 ........................................... 4,440,000 4,593,358 Refunding, Series A, XLCA Insured, 5.00%, 10/01/37 ..................................... 10,000,000 10,107,600 Miami-Dade County Educational Facilities Authority Revenue, Series A, AMBAC Insured, 5.75%, 4/01/29 ............................................................................ 10,000,000 10,854,900
44 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 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 $ 2,063,965 MFMR, Villa Esperanza Apartments Project, 5.25%, 10/01/19 .............................. 430,000 437,658 MFMR, Villa Esperanza Apartments Project, 5.40%, 10/01/33 .............................. 1,500,000 1,520,190 Miami-Dade County IDAR, Airis Miami ll LLC Project, AMBAC Insured, 6.00%, 10/15/25 ........... 4,500,000 4,872,510 Miami-Dade County Public Facilities Revenue, Jackson Health System, Series A, MBIA Insured, 5.00%, 6/01/35 .............................................................. 16,700,000 17,092,784 Miami-Dade County School Board COP, Series A, MBIA Insured, Pre-Refunded, 5.00%, 5/01/31 ................................................................................... 5,000,000 5,361,750 Miami-Dade County Special Obligation Revenue, Juvenile Courthouse Project, Series A, AMBAC Insured, 5.00%, 4/01/35 ............................................................. 5,000,000 5,160,450 North Broward Hospital District Revenue, Improvement, 6.00%, 1/15/31 ............................................................ 2,290,000 2,462,323 Improvement, Pre-Refunded, 6.00%, 1/15/31 .............................................. 23,240,000 25,923,058 MBIA Insured, Pre-Refunded, 5.375%, 1/15/24 ............................................ 3,945,000 4,075,856 MBIA Insured, Pre-Refunded, 5.75%, 1/15/27 ............................................. 7,650,000 7,934,809 Refunding, MBIA Insured, 5.375%, 1/15/24 ............................................... 6,055,000 6,226,296 Refunding, MBIA Insured, 5.75%, 1/15/27 ................................................ 11,720,000 12,105,471 North Miami Health Facilities Authority Revenue, Catholic Health Services Obligation Group, 6.00%, 8/15/16 ................................................................................ 2,000,000 2,062,400 8/15/24 ................................................................................ 1,750,000 1,799,228 Orange County Health Facilities Authority Revenue, Adventist Health System, 6.25%, 11/15/24 ............................................... 5,500,000 6,113,415 Adventist Health System, Pre-Refunded, 6.375%, 11/15/20 ................................ 3,000,000 3,409,290 Adventist Health System, Pre-Refunded, 6.50%, 11/15/30 ................................. 10,750,000 12,277,145 Hospital, Adventist Health System Inc., 5.625%, 11/15/32 ............................... 15,000,000 15,913,050 Orlando Regional Healthcare System, 6.00%, 12/01/29 .................................... 6,000,000 6,557,100 Orlando Regional Healthcare System, Series E, 6.00%, 10/01/26 .......................... 12,000,000 12,726,000 Orange County HFA, Homeowner Revenue, Series C-1, GNMA Secured, 5.70%, 9/01/26 ............... 890,000 902,131 Orange County School Board COP, Series A, MBIA Insured, 5.00%, 8/01/27 ....................... 12,000,000 12,403,800 Orange County Tourist Development Tax Revenue, AMBAC Insured, 5.50%, 10/01/32 ......................................................... 20,000,000 21,463,600 AMBAC Insured, Pre-Refunded, 5.50%, 10/01/31 ........................................... 10,500,000 11,291,385 Refunding, AMBAC Insured, 5.00%, 10/01/31 .............................................. 5,000,000 5,204,450 Refunding, MBIA Insured, 5.125%, 10/01/20 .............................................. 10,000,000 10,363,400 sub., AMBAC Insured, 5.125%, 10/01/30 .................................................. 10,000,000 10,412,500 Subordinate, AMBAC Insured, 5.125%, 10/01/25 ........................................... 5,500,000 5,782,700 Orlando and Orange County Expressway Authority Expressway Revenue, junior lien, FGIC Insured, 5.00%, 7/01/28 .............................................. 8,000,000 8,210,400 senior lien, AMBAC Insured, ETM, 7.625%, 7/01/18 ....................................... 265,000 266,465 Series B, AMBAC Insured, 5.00%, 7/01/35 ................................................ 9,185,000 9,482,594 Osceola County IDAR, Community Provider Pooled Loan Program, Series A, FSA Insured, 7.75%, 7/01/10 .................................................. 1,398,000 1,403,047 Series C, FSA Insured, 7.60%, 7/01/10 .................................................. 520,000 521,825 Osceola County Sales Tax Revenue, FSA Insured, 5.00%, 4/01/24 ................................ 10,000,000 10,427,100 Osceola County Tourist Development Tax Revenue, FGIC Insured, 5.00%, 10/01/32 ................ 10,000,000 10,308,100
Quarterly Statements of Investments | 45 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FLORIDA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) FLORIDA (CONT.) Palm Beach County Financing Authority MFR, Housing Windsor Park Apartment Project, Series A, 5.90%, 6/01/38 .................................................................. $ 995,000 $ 1,025,765 Palm Beach County HFAR, Acts Retirement-Life Communities, 5.125%, 11/15/29 ................... 3,650,000 3,653,833 Palm Beach County IDR, Lourdes-Noreen McKeen Residence, Geriatric Care Inc. Project, Pre-Refunded, 6.55%, 12/01/16 ............................................................................ 1,755,000 1,845,786 Lourdes-Noreen McKeen Residence, Geriatric Care Inc. Project, Pre-Refunded, 6.625%, 12/01/26 ............................................................................ 4,000,000 4,209,840 South Florida Fair Project, AMBAC Insured, 5.50%, 6/01/31 .............................. 5,000,000 5,303,250 Palm Beach County Public Improvement Revenue, Convention Center Project, FGIC Insured, Pre-Refunded, 5.125%, 11/01/30 ............................................................ 10,000,000 10,832,100 Palm Beach County School Board COP, Series A, AMBAC Insured, 5.125%, 8/01/24 ............................................... 15,000,000 15,824,250 Series A, FGIC Insured, Pre-Refunded, 6.00%, 8/01/22 ................................... 5,000,000 5,568,150 Series C, FSA Insured, 5.00%, 8/01/27 .................................................. 10,000,000 10,336,500 Panama City Beach Utility Revenue, Refunding, AMBAC Insured, 5.00%, 6/01/27 ................................................................................ 4,450,000 4,630,270 6/01/32 ................................................................................ 2,795,000 2,888,381 Pasco County School Board COP, Series A, AMBAC Insured, 5.00%, 8/01/30 ....................... 5,000,000 5,181,850 Pensacola Airport Revenue, Series A, MBIA Insured, Pre-Refunded, 5.75%, 10/01/27 ............. 5,615,000 5,970,149 Pinellas County Health Facilities Authority Revenue, Baycare Health System, FSA Insured, 5.00%, 11/15/30 ........................................................................... 11,500,000 11,784,625 Polk County Capital Improvement Revenue, FSA Insured, Pre-Refunded, 5.75%, 12/01/21 .................................................................................. 2,350,000 2,608,735 Polk County IDAR, Solid Waste Disposal Facility, Tampa Electric Co. Project, 5.85%, 12/01/30 .................................................................................. 15,000,000 15,483,600 Polk County School Board COP, Series A, FSA Insured, 5.00%, 1/01/26 .......................... 4,000,000 4,135,160 Polk County Utility System Revenue, Series A, FGIC Insured, 5.00%, 10/01/34 .................. 1,000,000 1,036,010 Port Everglades Authority Port Improvement Revenue, Series 1986, ETM, 7.50%, 11/01/06 .................................................................................. 135,000 140,196 Sarasota County Utility System Revenue, FGIC Insured, Pre-Refunded, 5.75%, 10/01/27 ............................................ 18,000,000 18,968,580 Refunding, Series A, FGIC Insured, 5.25%, 10/01/25 ..................................... 5,280,000 5,459,678 South Broward Hospital District Revenue, 5.60%, 5/01/27 ......................................................................... 5,000,000 5,307,350 5.625%, 5/01/32 ........................................................................ 16,250,000 17,253,112 St. Lucie West Services District Utility Revenue, senior lien, MBIA Insured, 6.125%, 10/01/32 .................................................................................. 10,000,000 11,224,300 St. Petersburg Public Utilities Revenue, Refunding, MBIA Insured, 5.00%, 10/01/35 ............ 10,795,000 11,140,224 Sunrise Lakes Recreation District GO, Phase 4, Refunding, AMBAC Insured, 5.25%, 8/01/24 ................................................................................... 4,320,000 4,479,019 Sunrise Utilities System Revenue, Refunding, AMBAC Insured, 5.20%, 10/01/22 .................. 2,550,000 2,802,527 Tamarac Sales Tax Revenue, FGIC Insured, 5.00%, 4/01/22 ...................................... 2,490,000 2,606,482 Tampa Bay Water Utility System Revenue, FGIC Insured, Pre-Refunded, 5.75%, 10/01/29 ............................................ 15,000,000 16,721,250 Series B, FGIC Insured, 5.00%, 10/01/31 ................................................ 10,000,000 10,278,800 Tampa Sports Authority Revenue, Guaranteed Package, Tampa Bay Arena Project, MBIA Insured, 6.00%, 10/01/15 ............. 1,000,000 1,136,780
46 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FLORIDA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) FLORIDA (CONT.) Tampa Sports Authority Revenue, (cont.) Guaranteed Package, Tampa Bay Arena Project, MBIA Insured, 6.05%, 10/01/20 ............. $ 1,715,000 $ 2,033,801 Guaranteed Package, Tampa Bay Arena Project, MBIA Insured, 6.10%, 10/01/26 ............. 2,695,000 3,246,370 Sales Tax Payments, Stadium Project, MBIA Insured, Pre-Refunded, 5.25%, 1/01/27 ........ 5,860,000 6,042,129 Tampa Water and Sewer Revenue, sub. lien, Series A, AMBAC Insured, 7.25%, 10/01/16 ........... 1,330,000 1,613,636 Tampa-Hillsborough County Expressway Authority Revenue, AMBAC Insured, Pre-Refunded, 5.00%, 7/01/22 ............................................................................ 5,000,000 5,182,800 University of Central Florida Assn. Inc. COP, Series A, FGIC Insured, 5.00%, 10/01/30 ........ 2,500,000 2,594,175 Viera East CDD Revenue, Special Assessment, Series B, ETM, 6.75%, 5/01/14 .................... 5,855,000 6,550,750 Viera East CDD Special Assessment, Refunding, 7.00%, 5/01/26 .............................................................. 6,945,000 7,516,365 Water Management, Refunding, Series A, 6.50%, 5/01/22 .................................. 11,340,000 11,604,335 Water Management, Series B, 6.50%, 5/01/22 ............................................. 4,580,000 4,686,760 Viera East CDD, Water and Sewer Revenue, 6.75%, 5/01/09 ...................................... 1,990,000 2,037,959 Village Center CDD Recreational Revenue, Series A, MBIA Insured, 5.20%, 11/01/25 ............. 10,000,000 10,556,900 Volusia County Educational Facility Authority Revenue, Educational Facilities, Embry Riddle University, Refunding, Series B, AMBAC Insured, 5.25%, 10/15/22 ........... 2,000,000 2,127,860 Stetson University Inc. Project, AMBAC Insured, 5.25%, 6/01/29 ......................... 5,000,000 5,261,850 Volusia County School Board COP, Master Lease Program, FSA Insured, 5.50%, 8/01/24 ...................................... 5,000,000 5,375,200 MBIA Insured, 5.00%, 8/01/30 ........................................................... 9,380,000 9,706,330 West Lake CDD, Special Assessment Revenue, MBIA Insured, 5.75%, 5/01/17 ...................... 1,870,000 2,025,079 West Orange Healthcare District Revenue, Series A, 5.65%, 2/01/22 ............................ 10,850,000 11,353,331 West Palm Beach Utility System Revenue, FGIC Insured, Pre-Refunded, 5.50%, 10/01/29 .................................................................................. 5,000,000 5,247,100 -------------- 1,473,254,247 -------------- U. S. TERRITORIES 6.2% Puerto Rico Commonwealth GO, Public Improvement, Series A, 5.00%, 7/01/25 ................................................................................ 5,000,000 5,037,950 7/01/29 ................................................................................ 10,000,000 10,027,300 7/01/33 ................................................................................ 13,000,000 12,884,170 Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Series A, MBIA Insured, 5.00%, 7/01/38 ................................................. 12,800,000 13,114,624 Series B, Pre-Refunded, 6.00%, 7/01/39 ................................................. 5,000,000 5,582,150 Series D, Pre-Refunded, 5.375%, 7/01/36 ................................................ 5,000,000 5,475,350 Series G, 5.00%, 7/01/33 ............................................................... 5,000,000 4,955,450 Series K, 5.00%, 7/01/30 ............................................................... 5,000,000 4,978,800 Puerto Rico Electric Power Authority Power Revenue, Series II, 5.25%, 7/01/31 ................ 15,000,000 15,529,650 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 6,333,414 Puerto Rico PBA Revenue, Guaranteed, Government Facilities, Series D, 5.375%, 7/01/33 .............................................................. 1,210,000 1,252,907 Series D, Pre-Refunded, 5.375%, 7/01/33 ................................................ 3,790,000 4,150,315 Series I, 5.00%, 7/01/36 ............................................................... 5,000,000 4,953,400 Virgin Islands PFAR, Gross Receipts Taxes Loan Note, Radian Insured, 5.00%, 10/01/33 ......... 10,000,000 10,250,300 -------------- 104,525,780 -------------- TOTAL BONDS (COST $1,479,967,745) ............................................................ 1,577,780,027 --------------
Quarterly Statements of Investments | 47 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FLORIDA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) ZERO COUPON BONDS 6.0% FLORIDA 6.0% Broward County HFAR, SFMR, Refunding, Series B, FHA Insured, 4/01/29 ......................... $ 735,000 $ 147,728 Broward County Water and Sewer Utility Revenue, Refunding, Series A, AMBAC Insured, 10/01/08 .................................................................................. 1,980,000 1,710,997 Dade County Guaranteed Entitlement Revenue, Capital Appreciation, AMBAC Insured, Pre-Refunded, 8/01/18 ..................................................................... 17,020,000 6,849,699 Florida HFC Revenue, Capital Appreciation, Homeowner Mortgage, Series 4, FSA Insured, 7/01/30 ............... 3,805,000 703,468 Deferred Interest, Homeowner Mortgage, Series 1, MBIA Insured, 7/01/17 ................. 1,905,000 1,038,606 Deferred Interest, Homeowner Mortgage, Series 2, MBIA Insured, 1/01/29 ................. 33,835,000 9,371,618 Florida State Mid-Bay Bridge Authority Revenue, Series A, AMBAC Insured, Pre-Refunded, 10/01/25 ............................................................................... 9,845,000 3,880,111 10/01/26 ............................................................................... 2,500,000 933,250 Fort Pierce Utilities Authority Revenue, Capital Appreciation, Series B, AMBAC Insured, 10/01/20 ............................................................................... 3,090,000 1,563,355 10/01/21 ............................................................................... 2,585,000 1,241,395 10/01/22 ............................................................................... 3,090,000 1,407,402 10/01/23 ............................................................................... 3,060,000 1,320,849 10/01/24 ............................................................................... 2,560,000 1,046,426 Hillsborough County HFA Mortgage Revenue, SF, Series A, GNMA Secured, 4/01/32 ................ 1,080,000 214,618 Lakeland Electric and Water Revenue, Capital Appreciation, ETM, 10/01/14 ..................... 5,770,000 3,981,473 Melbourne Water and Sewer Revenue, Capital Appreciation, FGIC Insured, ETM, 10/01/26 ............................................................ 1,500,000 560,940 Refunding, Series B, FGIC Insured, 10/01/22 ............................................ 1,785,000 813,014 Refunding, Series B, FGIC Insured, 10/01/26 ............................................ 4,500,000 1,648,980 Miami-Dade County Special Obligation, Sub Series B, MBIA Insured, 10/01/36 ................................................... 5,635,000 1,031,261 Sub Series C, MBIA Insured, 10/01/28 ................................................... 8,305,000 2,398,318 sub. lien, Refunding, Series A, MBIA Insured, 10/01/25 ................................. 22,365,000 7,791,071 Pinellas County HFA, SFHMR, Multi County B-1, GNMA Secured, 9/01/31 .......................... 815,000 147,996 Port Everglades Authority Port Improvement Revenue, Capital Appreciation, 9/01/10 ................................................................................ 24,525,000 18,185,042 ETM, 9/01/10 ........................................................................... 25,475,000 20,460,756 Port St. Lucie Utility Revenue, MBIA Insured, Pre-Refunded, 9/01/29 .......................... 20,000,000 5,587,800 Sarasota Special Obligated Revenue, Refunding, AMBAC Insured, 11/01/09 ............................................................................... 1,365,000 1,176,125 11/01/12 ............................................................................... 1,780,000 1,338,578 11/01/15 ............................................................................... 2,180,000 1,413,774 St. Johns County Water and Sewer Revenue, Capital Appreciation, AMBAC Insured, 6/01/22 ................................................................................ 4,000,000 1,741,720 6/01/23 ................................................................................ 4,255,000 1,734,934 6/01/24 ................................................................................ 1,500,000 575,325 6/01/25 ................................................................................ 2,130,000 771,166 -------------- TOTAL ZERO COUPON BONDS (COST $95,279,403) ................................................... 102,787,795 -------------- TOTAL LONG TERM INVESTMENTS (COST $1,575,247,148) ............................................ 1,680,567,822 --------------
48 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FLORIDA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM INVESTMENTS 1.2% BONDS 1.2% FLORIDA 1.2% (a)Jacksonville Health Facilities Authority Hospital Revenue, Baptist Medical Center Project, Daily VRDN and Put, 2.95%, 8/15/21 ..................... $ 2,400,000 $ 2,400,000 Genesis Rehabilitation Hospital, Refunding, Daily VRDN and Put, 3.03%, 5/01/21 ......... 1,400,000 1,400,000 Series C, Daily VRDN and Put, 2.95%, 8/15/33 ........................................... 5,515,000 5,515,000 (a)Orange County School Board COP, Series B, AMBAC Insured, Daily VRDN and Put, 3.00%, 8/01/25 ...................................... 2,000,000 2,000,000 MBIA Insured, Daily VRDN and Put, 3.00%, 8/01/27 ....................................... 700,000 700,000 (a)Orlando and Orange County Expressway Authority Expressway Revenue, Refunding, Series C3, FSA Insured, Weekly VRDN and Put, 3.01%, 7/01/25 .............................................. 3,450,000 3,450,000 (a)Pinellas County Health Facilities Authority Revenue, Pooled Hospital Loan Program, Refunding, AMBAC Insured, Daily VRDN and Put, 3.00%, 12/01/15 ............................. 3,795,000 3,795,000 -------------- 19,260,000 -------------- U. S. TERRITORIES 0.0%(b) (a)Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Series A, AMBAC Insured, Weekly VRDN and Put, 2.93%, 7/01/28 .............................. 200,000 200,000 -------------- TOTAL SHORT TERM INVESTMENTS (COST $19,460,000) .............................................. 19,460,000 -------------- TOTAL INVESTMENTS (COST $1,594,707,148) 100.1% ............................................... 1,700,027,822 OTHER ASSETS, LESS LIABILITIES (0.1)% ........................................................ (1,362,680) -------------- NET ASSETS 100.0% ............................................................................ $1,698,665,142 ==============
See Selected Portfolio Abbreviations on page 169. (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. (b) Rounds to less than 0.05% of net assets. Quarterly Statements of Investments | 49 See Notes to Statements of Investments. | FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN GEORGIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 98.3% BONDS 97.5% GEORGIA 96.0% Albany-Dougherty Inner City Authority Revenue, Albany State University Student Housing, Series A, XLCA Insured, 5.00%, 7/01/29 .................................................... $ 4,000,000 $ 4,119,520 Atlanta Airport Passenger Facility Charge Revenue, General, sub. lien, Series C, FSA Insured, 5.00%, 1/01/33 ............................................................................ 5,000,000 5,129,500 Atlanta Airport Revenue, General, Series A, FGIC Insured, Pre-Refunded, 5.50%, 1/01/26 .......................... 5,000,000 5,431,650 Series A, FGIC Insured, Pre-Refunded, 5.60%, 1/01/30 ................................... 5,000,000 5,450,500 Atlanta and Fulton County Recreation Authority Revenue, AMBAC Insured, 5.50%, 12/01/20 .................................................................................. 1,500,000 1,615,275 Atlanta Development Authority Revenue, Tuff Yamacraw LLC Project, Refunding, Series A, AMBAC Insured, 5.00%, 1/01/26 .......... 2,555,000 2,747,238 Yamacraw Design Center Project, Series A, MBIA Insured, Pre-Refunded, 5.125%, 1/01/23 .. 4,150,000 4,492,333 Atlanta Urban Residential Finance Authority MFHR, Defoors Ferry Manor Project, Pre-Refunded, 5.90%, 10/01/18 ............................. 1,700,000 1,770,703 Fulton Cotton Mill, GNMA Secured, 6.00%, 5/20/17 ....................................... 1,040,000 1,078,553 Fulton Cotton Mill, GNMA Secured, 6.125%, 5/20/27 ...................................... 1,560,000 1,612,260 Atlanta Water and Wastewater Revenue, Refunding, Series A, MBIA Insured, 5.00%, 11/01/33 ..... 8,000,000 8,206,720 Augusta Water and Sewer Revenue, FSA Insured, 5.00%, 10/01/32 ................................ 5,000,000 5,139,250 Baldwin County Hospital Authority Revenue, Oconee Regional Medical Center, 5.25%, 12/01/22 ........................................................................ 2,500,000 2,266,325 5.375%, 12/01/28 ....................................................................... 2,000,000 1,785,780 Brunswick and Glynn County Development Authority Revenue, Georgia Pacific Project, Refunding, 5.55%, 3/01/26 ................................................................. 2,000,000 1,855,400 Bulloch County Development Authority Lease Revenue, Georgia Southern University, XLCA Insured, 5.00%, 8/01/27 .............................................................. 5,000,000 5,202,750 Cherokee County Water and Sewage Authority Revenue, MBIA Insured, 6.90%, 8/01/18 ............. 10,000 10,058 Clayton County Development Authority Revenue, Gateway Village Project, Series A, Pre-Refunded, 6.00%, 8/01/23 ........................ 3,500,000 3,874,605 Refunding, Series A, MBIA Insured, 5.00%, 8/01/23 ...................................... 2,310,000 2,421,642 Clayton County MFHR, Pointe Clear Apartments Project, FSA Insured, 5.70%, 7/01/23 ............ 995,000 1,018,462 Cobb County Development Authority Parking Revenue, Kennesaw State University Foundation Inc. Project, MBIA Insured, 5.00%, 7/15/29 ................................................ 2,000,000 2,076,440 Cobb County Development Authority University Facilities Revenue, Kennesaw State University, Sub Series D, MBIA Insured, 5.00%, 7/15/29 ................................................ 4,000,000 4,152,880 Cobb County Kennestone Hospital Authority Revenue, Series A, MBIA Insured, ETM, 7.75%, 2/01/07 ................................................................................... 30,000 30,534 College Park Business and IDAR, Civic Center Project, AMBAC Insured, Pre-Refunded, 5.75%, 9/01/26 ................................................................................... 2,000,000 2,230,620 Columbia County GO, Courthouse/Detention Center Projects, 5.00%, 2/01/24 ..................... 2,000,000 2,070,340 Columbia County Water and Sewer Revenue, FSA Insured, 5.00%, 6/01/24 ......................... 1,130,000 1,180,036 Columbus Water and Sewage Revenue, Refunding, MBIA Insured, 5.00%, 5/01/25 ................... 1,000,000 1,042,450 DeKalb County Housing Authority MFHR, Castaway Apartments, Series A, GNMA Insured, 5.40%, 2/20/29 ............................................................................ 1,980,000 2,056,309 DeKalb County Public Safety and Judicial Facilities Authority Revenue, Public Safety and Judicial Facility Project, 5.00%, 12/01/29 ................................................ 2,000,000 2,082,260
50 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN GEORGIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) GEORGIA (CONT.) DeKalb County Water and Sewer Revenue, 5.125%, 10/01/31 ...................................... $ 6,500,000 $ 6,807,320 Douglasville-Douglas County Water and Sewer Authority Water and Sewer Revenue, MBIA Insured, 5.00%, 6/01/29 .............................................................. 3,410,000 3,551,515 Fayette County PFAR, Criminal Justice Center Project, Refunding, 5.00%, 6/01/26 .............. 3,000,000 3,124,680 Forsyth County GO, Pre-Refunded, 5.75%, 2/01/19 .............................................. 1,500,000 1,655,985 Forsyth County School District GO, MBIA Insured, 5.00%, 2/01/25 .............................. 3,000,000 3,136,590 Fulton County Development Authority Revenue, Georgia Tech Foundation Funding, Series A, 5.00%, 11/01/31 ............................. 3,000,000 3,099,420 Georgia Tech Foundation, Sac II Project, Series A, 5.25%, 11/01/30 ..................... 5,000,000 5,293,300 Molecular Science Building Project, MBIA Insured, 5.00%, 5/01/25 ....................... 2,240,000 2,335,088 Fulton County Water and Sewer Revenue, FGIC Insured, 5.00%, 1/01/30 .......................... 2,500,000 2,590,600 Gainesville and Hall County Hospital Authority Revenue Anticipation Certificates, Northeast Health System Inc. Project, Refunding, 5.50%, 5/15/31 ..................................... 2,500,000 2,581,700 Georgia Municipal Association Inc. COP, City Court Atlanta Project, AMBAC Insured, 5.25%, 12/01/26 .................................................................................. 2,000,000 2,132,280 Georgia Municipal Electric Authority Power Revenue, Series W, 6.60%, 1/01/18 ......................................................................... 955,000 1,132,019 ETM, 6.60%, 1/01/18 .................................................................... 45,000 52,948 Georgia Municipal Gas Authority Gas Revenue, City of Toccoa Project, AMBAC Insured, 5.00%, 6/01/24 ................................................................................... 1,000,000 1,037,380 Georgia Private Colleges and Universities Authority Student Housing Revenue, Mercer Housing Corp. Project, Series A, 6.00%, 6/01/24 ................................................... 2,550,000 2,713,225 Georgia School Board Assn. Inc. COP, DeKalb County Public School Project, MBIA Insured, 5.00%, 12/01/25 ........................................................................... 2,600,000 2,716,428 Georgia State HFAR, MF, Club Candlewood Project, FSA Insured, Pre-Refunded, 7.15%, 1/01/25 ..................... 1,000,000 1,039,660 Lake Vista Apartments Project, Series A, FSA Insured, 5.95%, 1/01/27 ................... 1,000,000 1,030,630 Griffin Combined Public Utility Revenue, Refunding and Improvement, AMBAC Insured, 5.00%, 1/01/25 ................................................................................... 1,450,000 1,515,555 Gwinnett County Development Authority COP, Gwinnett County Public Schools Project, MBIA Insured, 5.00%, 1/01/24 .............................................................. 8,500,000 8,860,655 Gwinnett County Hospital Authority Revenue, Anticipation Certificates, Gwinnett Hospital Systems Inc. Project, Series B, MBIA Insured, 5.30%, 9/01/27 .............................. 3,750,000 3,956,025 Gwinnett County Water and Sewer Authority Revenue, 5.25%, 8/01/25 ............................ 2,795,000 2,978,743 Habersham County School District GO, MBIA Insured, 5.00%, 4/01/28 ............................ 2,750,000 2,873,915 Henry County Hospital Authority Revenue, Henry Medical Center Inc. Project, Refunding, AMBAC Insured, 6.00%, 7/01/29 ............................................................. 5,000,000 5,486,300 Hogansville Combined Public Utility System Revenue, Refunding, FSA Insured, 6.00%, 10/01/23 .................................................................................. 3,300,000 3,853,146 Jefferson School District GO, School, Series A, 5.00%, 2/01/24 ............................... 1,005,000 1,051,521 Liberty County Hospital Authority Revenue, Anticipation Certificates, Refunding, AMBAC Insured, 5.00%, 8/01/26 ............................................................. 2,905,000 3,061,057 Marietta Development Authority Revenue, First Mortgage, Life College Inc., Refunding, Series A, FSA Insured, 5.75%, 9/01/14 ....................................... 1,800,000 1,845,684 Refunding, Series A, FSA Insured, 5.80%, 9/01/19 ....................................... 1,100,000 1,127,962 Refunding, Series A, FSA Insured, 5.95%, 9/01/19 ....................................... 1,000,000 1,025,540 Series B, FSA Insured, 5.75%, 9/01/14 .................................................. 800,000 820,304
Quarterly Statements of Investments | 51 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN GEORGIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) GEORGIA (CONT.) Medical Center Hospital Authority Revenue, Anticipation Certificates, Columbus Regional Healthcare System, MBIA Insured, 5.50%, 8/01/25 ........................................... $ 6,000,000 $ 6,364,500 Meriwether County PFAR, Meriwether County Schools Project, MBIA Insured, 5.85%, 10/01/26 .................................................................................. 1,000,000 1,085,360 Monroe County Development Authority PCR, Oglethorpe Power Co., Scherer Project, Refunding, Series A, 6.80%, 1/01/12 .................................................................. 1,500,000 1,727,880 Municipal Electricity Authority Revenue, Project 1, Sub Series E, MBIA Insured, 5.00%, 1/01/25 ................................................................................... 2,315,000 2,419,291 Newton County Hospital Authority Revenue, Newton Health System Project 1999, AMBAC Insured, 6.10%, 2/01/24 ............................................................. 4,500,000 4,952,700 Private Colleges and Universities Authority Revenue, Emory University Project, Refunding, Series A, Pre-Refunded, 5.50%, 11/01/25 ........... 10,000,000 10,837,800 Mercer University Project, Refunding, Series A, 5.375%, 10/01/29 ....................... 2,000,000 2,048,480 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 1,029,880 Richmond County Development Authority, Solid Waste Disposal Revenue, International Paper Co. Project, 5.80%, 12/01/20 .................................................................. 1,500,000 1,553,865 Rockdale County Water and Sewer Authority Revenue, FSA Insured, 5.00%, 7/01/29 ............................................................ 4,000,000 4,182,520 Refunding, Series A, MBIA Insured, Pre-Refunded, 5.375%, 7/01/29 ....................... 5,000,000 5,408,100 Savannah EDA Revenue, Armstrong Center LLC Project, Series A, XLCA Insured, 5.00%, 12/01/30 .................. 2,125,000 2,199,333 XLCA Insured, 5.00%, 7/01/29 ........................................................... 3,000,000 3,101,370 South Fulton Municipal Regional Water and Sewer Authority Water Revenue, MBIA Insured, 5.00%, 1/01/33 ............................................................................ 3,500,000 3,598,490 Suwanee GO, MBIA Insured, 5.25%, 1/01/32 ..................................................... 3,000,000 3,141,000 Upper Oconee Basin Water Authority Revenue, FGIC Insured, Pre-Refunded, 5.25%, 7/01/27 ............................................. 1,550,000 1,653,199 Refunding, MBIA Insured, 5.00%, 7/01/26 ................................................ 1,000,000 1,043,250 Valdosta and Lowndes County Hospital Authority Revenue, Certificates, South Georgia Medical Center Project, AMBAC Insured, 5.25%, 10/01/27 ............................................ 3,000,000 3,167,040 Walton County Water and Sewer Authority Revenue, Refunding and Improvement, MBIA Insured, 6.00%, 2/01/21 ............................................................................ 750,000 768,233 Ware County Hospital Authority Revenue, Anticipation Certificates, MBIA Insured, 5.25%, 3/01/25 ................................................................................... 3,000,000 3,177,390 -------------- 230,097,249 -------------- U. S. TERRITORIES 1.5% Virgin Islands PFAR, senior lien, Fund Loan Notes, Refunding, Series A, 5.40%, 10/01/12 ........................................................................ 850,000 890,868 5.50%, 10/01/22 ........................................................................ 1,200,000 1,245,528 5.625%, 10/01/25 ....................................................................... 1,530,000 1,588,936 -------------- 3,725,332 -------------- TOTAL BONDS (COST $222,381,461) .............................................................. 233,822,581 --------------
52 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN GEORGIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) STEP-UP BONDS 0.8% GEORGIA 0.8% Fayette County School District GO, zero cpn. to 9/01/10, 4.75% thereafter, 3/01/21 .............................................................. $ 1,355,000 $ 1,081,954 4.95% thereafter, 3/01/25 .............................................................. 1,000,000 791,990 -------------- TOTAL STEP-UP BONDS (COST $1,876,970) ........................................................ 1,873,944 -------------- TOTAL LONG TERM INVESTMENTS (COST $224,258,431) .............................................. 235,696,525 -------------- SHORT TERM INVESTMENTS 1.8% BONDS 1.8% GEORGIA 1.8% (a)Athens-Clarke County Unified Government Authority Revenue, University of Georgia Athletic Assn. Project, Daily VRDN and Put, 3.02%, 8/01/33 ......................................... 1,475,000 1,475,000 (a)Atlanta Downtown Development Authority Revenue, Underground Atlanta Project, Refunding, AMBAC Insured, Weekly VRDN and Daily Put, 3.02%, 10/01/16 ................................. 300,000 300,000 (a)Atlanta Water and Wastewater Revenue, Series C, FSA Insured, Daily VRDN and Put, 3.00%, 11/01/41 .................................................................................. 2,515,000 2,515,000 -------------- TOTAL SHORT TERM INVESTMENTS (COST $4,290,000) ............................................... 4,290,000 -------------- TOTAL INVESTMENTS (COST $228,548,431) 100.1% ................................................. 239,986,525 OTHER ASSETS, LESS LIABILITIES (0.1)% ........................................................ (317,964) -------------- NET ASSETS 100.0% ............................................................................ $ 239,668,561 ==============
See Selected Portfolio Abbreviations on page 169. (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 | 53 See Notes to Statements of Investments. | FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED)
- ----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS 98.7% BONDS 91.5% ALABAMA 0.3% Camden IDB Exempt Facilities Revenue, Weyerhaeuser, Refunding, Series A, 6.125%, 12/01/24 .............................................................. $ 3,000,000 $ 3,267,390 Series B, 6.375%, 12/01/24 .............................................................. 1,750,000 1,904,473 Oneonta Eastern Health Systems Special Care Facilities Financing Authority GO, 7.75%, 7/01/21 .................................................................................... 10,575,000 11,513,531 ------------- 16,685,394 ------------- ALASKA 0.2% Alaska Industrial Development and Export Authority Power Revenue, Upper Lynn Canal Regional Power, 5.70%, 1/01/12 .......................................................................... 2,260,000 2,271,275 5.80%, 1/01/18 .......................................................................... 1,495,000 1,455,741 5.875%, 1/01/32 ......................................................................... 6,900,000 6,393,816 Alaska State HFC Revenue, Series A, MBIA Insured, Pre-Refunded, 5.85%, 12/01/15 ............... 2,340,000 2,386,800 ------------- 12,507,632 ------------- ARIZONA 4.1% Apache County IDA, IDR, Tucson Electric Power Co. Project, Series C, 5.85%, 3/01/26 ........................ 16,500,000 16,510,725 PCR, Tucson Electric Power Co. Project, Series A, 5.85%, 3/01/28 ........................ 53,150,000 53,174,449 PCR, Tucson Electric Power Co. Project, Series B, 5.875%, 3/01/33 ....................... 33,800,000 33,807,774 Arizona Health Facilities Authority Hospital System Revenue, John C. Lincoln Health Network, 6.375%, 12/01/37 ........................................................................... 2,500,000 2,707,600 Arizona Health Facilities Authority Revenue, Bethesda Foundation Project, Series A, 6.375%, 8/15/15 .................................. 400,000 405,652 Bethesda Foundation Project, Series A, 6.40%, 8/15/27 ................................... 4,000,000 3,999,520 Catholic Healthcare West, Series A, 6.625%, 7/01/20 ..................................... 3,940,000 4,394,006 Casa Grande IDA Hospital Revenue, Casa Grande Regional Medical Center, Series A, 7.25%, 12/01/32 ................................................................................... 14,500,000 15,531,095 Coconino County Pollution Control Corp. Revenue, Pollution Control, Nevada Power Co., Series B, 5.80%, 11/01/32 .......................... 9,230,000 9,229,908 Tucson Electric Power Navajo, Refunding, Series A, 7.125%, 10/01/32 ..................... 21,125,000 21,932,397 Tucson Electric Power Navajo, Refunding, Series B, 7.00%, 10/01/32 ...................... 9,500,000 9,876,295 Maricopa County IDA Health Facilities Revenue, Catholic Healthcare West, Refunding, ACA Insured, 5.00%, 7/01/16 .................................................. 6,500,000 6,587,165 Series A, 5.50%, 7/01/26 ................................................................ 7,500,000 7,865,100 Maricopa County Pollution Control Corp. PCR, Public Service Co. of Colorado, Refunding, Series A, 5.75%, 11/01/22 .................................................................. 9,800,000 9,937,690 Phoenix Civic Improvement Corp. Water System Revenue, junior lien, Refunding, MBIA Insured, 5.00%, 7/01/29 ............................................................... 36,500,000 37,963,285 Pima County IDAR, Tucson Electric Power Co. Project, Series A, 6.10%, 9/01/25 ................. 3,990,000 3,992,793 ------------- 237,915,454 ------------- ARKANSAS 0.3% Arkansas State Development Finance Authority Industrial Facilities Revenue, Potlatch Corp. Projects, Series A, 7.75%, 8/01/25 ......................................................... 3,800,000 4,309,352 Baxter County IDR, Aeroquip/Trinova Corp. Project, Refunding, 5.80%, 10/01/13 ................. 2,400,000 2,672,208
54 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) ARKANSAS (CONT.) Calhoun County Solid Waste Disposal Revenue, Georgia-Pacific Corp. Project, 6.375%, 11/01/26 ................................................................................... $ 10,000,000 $ 10,135,500 Warren Solid Waste Disposal Revenue, Potlach Corp. Project, 7.00%, 4/01/12 .................... 3,150,000 3,455,424 ------------- 20,572,484 ------------- CALIFORNIA 11.2% ABAG 1915 Act Special Assessment, Windemere Ranch AD, Series 1, 7.45%, 9/02/30 ............................................ 37,535,000 40,205,240 Windemere Ranch AD 99, Series 1, 6.375%, 9/02/32 ........................................ 9,740,000 10,201,676 Adelanto Water Authority Revenue, Subordinated, Water System Acquisition Project, Series A, Pre-Refunded, 7.50%, 9/01/28 ..................................................... 21,330,000 24,033,364 Alameda County MFHR, Claremont House Project, Refunding, Series A, 8.00%, 12/01/23 ................................................................................... 11,650,000 12,234,014 Avenal PFAR, Pre-Refunded, 7.00%, 9/02/10 .......................................................................... 825,000 875,069 7.25%, 9/02/27 .......................................................................... 3,665,000 3,983,598 Beaumont PFAR, Sewer Enterprise Project, Series A, Pre-Refunded, 6.90%, 9/01/23 ............... 4,340,000 5,201,318 Calabasas Special Tax, CFD No. 01-1, Refunding, 6.25%, 9/01/31 ................................ 5,780,000 5,942,245 California County Tobacco Securitization Agency Revenue, Asset-Backed, Alameda County, 5.875%, 6/01/35 ............................................................................ 3,700,000 3,848,407 California Educational Facilities Authority Revenue, Pooled College and University Financing, Series B, 6.125%, 6/01/09 .................................................................. 35,000 35,055 California Health Facilities Financing Authority Revenue, Marshall Medical Center, Series A, California Mortgage Insured, 5.00%, 11/01/24 ................................................................................ 2,295,000 2,346,201 11/01/29 ................................................................................ 2,220,000 2,238,959 11/01/33 ................................................................................ 3,130,000 3,167,998 California Infrastructure and Economic Development Bank Revenue, Department of Social Services Administration Building, AMBAC Insured, 5.00%, 12/01/30 ................................................................................ 10,300,000 10,983,714 12/01/35 ................................................................................ 14,110,000 14,996,531 California State GO, 5.00%, 2/01/33 .......................................................................... 40,640,000 41,510,915 Refunding, 5.25%, 4/01/30 ............................................................... 2,500,000 2,603,400 Refunding, 5.25%, 4/01/32 ............................................................... 2,500,000 2,602,025 Various Purpose, 5.125%, 11/01/24 ....................................................... 18,935,000 19,791,051 Various Purpose, 5.00%, 8/01/33 ......................................................... 25,000,000 25,614,250 California Statewide CDA Revenue, Elder Care Alliance, Series A, 8.25%, 11/15/32 .......................................... 13,090,000 13,774,476 Eskaton Village Grass Valley, 8.25%, 11/15/31 ........................................... 3,285,000 3,726,143 John F. Kennedy University, 6.75%, 10/01/33 ............................................. 8,000,000 8,389,680 Monterey Institute International, 7.75%, 7/01/31 ........................................ 13,240,000 12,838,696 Prospect Sierra School, 6.75%, 9/01/32 .................................................. 6,545,000 6,819,890 Sutter Health, Series A, 5.00%, 11/15/43 ................................................ 25,000,000 25,018,750 Chula Vista CFD Special Tax, No. 07-I, Otay Ranch Village Eleven, 5.875%, 9/01/34 .................................... 3,205,000 3,343,648 No. 99-1, Otay Ranch Special Assessment 1, Pre-Refunded, 6.10%, 9/01/31 ................. 4,890,000 5,532,595
Quarterly Statements of Investments | 55 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) CALIFORNIA (CONT.) Corona COP, Corona Community Hospital Project, ETM, 9.425%, 9/01/06 .................................................................... $ 1,355,000 $ 1,416,707 Pre-Refunded, 9.425%, 9/01/20 ........................................................... 8,820,000 10,925,687 El Dorado County CFD Special Tax, Promontory Specific, Series No. 2001-1, 6.30%, 9/01/31 .................................................................................... 3,500,000 3,620,715 Elk Grove Special Tax, East Franklin Community No. 1-A, Pre-Refunded, 5.80%, 8/01/25 .......................................................................... 3,745,000 4,042,728 6.00%, 8/01/33 .......................................................................... 5,435,000 5,884,474 Emeryville RDA, MFHR, Emery Bay Apartments II, Refunding, Series A, 5.85%, 10/01/28 .................................................... 13,530,000 13,344,368 sub. lien, Refunding, Series B, 6.35%, 10/01/28 ......................................... 3,205,000 3,181,732 sub. lien, Refunding, Series C, 7.875%, 10/01/28 ........................................ 1,900,000 1,888,334 Foothill/Eastern Corridor Agency Toll Road Revenue, senior lien, Series A, Pre-Refunded, 6.50%, 1/01/32 ............................................................................. 37,675,000 39,022,635 Fullerton CFD No. 1 Special Tax, Amerige Heights, 6.20%, 9/01/32 .............................. 3,500,000 3,636,045 Golden State Tobacco Securitization Corp. Tobacco Settlement Revenue, Asset-Backed, Series A-3, 7.875%, 6/01/42 ............................................... 10,000,000 12,019,800 Asset-Backed, Series A-3, Pre-Refunded, 5.50%, 6/01/33 .................................. 20,000,000 22,143,000 Asset-Backed, Series A-3, Pre-Refunded, 5.50%, 6/01/43 .................................. 20,000,000 22,143,000 Asset-Backed, Series B, Pre-Refunded, 5.625%, 6/01/38 ................................... 21,000,000 23,419,620 Enhanced, Asset-Backed, Series A, 5.00%, 6/01/45 ........................................ 20,000,000 19,965,600 Series 2003 A-1, 6.75%, 6/01/39 ......................................................... 4,735,000 5,288,001 Lake Elsinore 1915 Act Special Assessment, AD No. 93-1, Ltd. Obligation, Refunding, 7.00%, 9/02/30 ............................................................................. 8,195,000 8,912,308 Lee Lake Water District CFD No. 3 Special Tax, Retreat, 5.95%, 9/01/34 ........................ 5,000,000 5,221,100 Los Angeles MFR, Refunding, Series J-1B, 7.125%, 1/01/24 ............................................................ 505,000 502,627 Series J-1C, 7.125%, 1/01/24 ............................................................ 1,155,000 1,149,572 Series J-2B, 8.50%, 1/01/24 ............................................................. 2,485,000 2,354,711 Series J-2C, 8.50%, 1/01/24 ............................................................. 5,585,000 5,292,178 Los Angeles Regional Airports Improvement Corp. Lease Revenue, (a)Facilities Sub-Lease, International Airport, Refunding, 6.35%, 11/01/25 ................. 12,000,000 9,060,120 Facilities Sub-Lease, Los Angeles International, Series A-1, 7.125%, 12/01/24 ........... 2,000,000 1,956,300 Facilities Sub-Lease, Los Angeles International, Series A-2, 7.50%, 12/01/24 ............ 10,000,000 10,006,300 Refunding, Series C, 6.125%, 12/01/07 ................................................... 4,655,000 4,606,728 Refunding, Series C, 7.00%, 12/01/12 .................................................... 8,000,000 8,070,800 Refunding, Series C, 7.50%, 12/01/24 .................................................... 30,000,000 30,018,900 (a)United Airlines, Los Angeles International, Refunding, 6.875%, 11/15/12 ................. 9,500,000 8,655,640 Murrieta 1915 Act Special Tax, CFD No. 2000-1, 6.375%, 9/01/30 ................................ 4,000,000 4,292,280 Oakland Revenue, YMCA East Bay Project, Refunding, 7.10%, 6/01/10 ............................. 1,515,000 1,557,875 Poway USD Special Tax, CFD No. 10, Area A, 6.10%, 9/01/31 ...................................................... 1,995,000 2,044,636 CFD No. 11, Area A, 5.375%, 9/01/28 ..................................................... 2,965,000 3,006,895 CFD No. 11, Area A, 5.375%, 9/01/34 ..................................................... 2,235,000 2,255,227 San Bernardino County Finance Authority Revenue, Public Improvement, AD, Refunding, Series A, 7.00%, 9/02/17 ................................................................... 790,000 793,618 San Francisco Uptown Parking Corp. Parking Revenue, Union Square, MBIA Insured, 6.00%, 7/01/31 .................................................................................... 8,920,000 9,860,882
56 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) CALIFORNIA (CONT.) San Joaquin Hills Transportation Corridor Agency Toll Road Revenue, senior lien, 5.00%, 1/01/33 .................................................................................... $ 11,930,000 $ 11,158,248 Saugus USD Special Tax, 6.00%, 9/01/33 ........................................................ 3,150,000 3,296,318 Stockton CFD Special Tax, Spanos Park West, 6.375%, 9/01/32 ................................... 4,100,000 4,372,199 Stockton Improvement Bond Revenue, 1915 Act, Ltd. Obligation, Mosher AD 02, 6.30%, 9/02/33 .................................................................................... 6,000,000 6,178,680 Upland CFD Special Tax, 2003-2 San Antonio Improvement, Series 1-A, 6.00%, 9/01/34 .................................................................................... 6,520,000 6,747,483 West Sacramento Special Tax, CFD No. 16, 6.00%, 9/01/33 ....................................... 3,000,000 3,062,910 ------------- 658,235,889 ------------- COLORADO 2.0% Colorado Health Facilities Authority Revenue, Volunteers of America Care Facilities, Refunding and Improvement, Series A, 5.45%, 7/01/08 .......................................................................... 710,000 711,420 5.75%, 7/01/20 .......................................................................... 3,000,000 3,053,370 5.875%, 7/01/28 ......................................................................... 2,990,000 2,967,575 Denver City and County Airport Revenue, Refunding, Series B, 5.50%, 11/15/33 .................................................... 20,000,000 20,088,600 Series D, 7.75%, 11/15/13 ............................................................... 500,000 581,625 (a)Denver City and County Special Facilities Airport Revenue, United Airlines Inc. Project, Series A, 6.875%, 10/01/32 ................................................................. 11,760,000 10,775,688 Denver Health and Hospital Authority Healthcare Revenue, Refunding, Series A, 6.25%, 12/01/33 ................................................................................... 4,000,000 4,263,040 Eagle County Airport Terminal Corp. Revenue, 7.50%, 5/01/21 .......................................................................... 1,785,000 1,815,702 Series A, 7.00%, 5/01/21 ................................................................ 850,000 892,747 Series A, 7.125%, 5/01/31 ............................................................... 1,705,000 1,798,229 Eagle County Sports and Housing Facilities Revenue, Vail Associate Project, Refunding, 6.95%, 8/01/19 ............................................................................. 41,200,000 43,360,116 Littleton MFHR, Riverpoint, Refunding, Series C, 8.00%, 12/01/29 .............................. 2,835,000 2,968,897 McKay Landing Metropolitan District No. 002 GO, Ltd. Tax, 7.50%, 12/01/19 ............................................................... 3,375,000 3,643,751 Refunding, Subordinated, Series A, 7.50%, 12/01/34 ...................................... 2,000,000 2,010,660 Saddle Rock South Metropolitan District No. 2 GO, Ltd. Mill Levy Obligation, 7.20%, 12/01/19 ................................................................................... 575,000 615,308 Saddle Rock South Metropolitan District No. 3 GO, Ltd. Mill Levy Obligation, 7.35%, 12/01/19 ................................................................................... 3,320,000 3,557,181 University of Colorado Hospital Authority Revenue, Series A, 5.60%, 11/15/31 .................. 9,000,000 9,302,490 Villages Castle Rock Metropolitan District No. 4 Revenue, Refunding, 8.50%, 6/01/31 ........... 3,000,000 3,024,960 ------------- 115,431,359 ------------- CONNECTICUT 1.9% Connecticut State Development Authority PCR, Connecticut Light and Water, Refunding, Series A, 5.85%, 9/01/28 ........................ 53,825,000 57,089,486 Western Massachusetts Electric Co., Refunding, Series A, 5.85%, 9/01/28 ................. 12,500,000 13,294,000 Connecticut State Development Authority Water Facility Revenue, Bridgeport Hydraulic Co. Project, 6.15%, 4/01/35 .................................................................... 3,000,000 3,114,870
Quarterly Statements of Investments | 57 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) CONNECTICUT (CONT.) Connecticut State Health and Educational Facilities Authority Revenue, Sacred Heart University, Series C, 6.50%, 7/01/16 ....................................... $ 420,000 $ 432,865 Sacred Heart University, Series C, Pre-Refunded, 6.50%, 7/01/16 ......................... 1,580,000 1,639,392 St. Mary's Hospital, Refunding, Series E, 5.50%, 7/01/20 ................................ 5,650,000 5,418,067 Windham Community Memorial Hospital, Series C, 6.00%, 7/01/11 ........................... 1,200,000 1,228,128 Connecticut State HFAR, Housing Mortgage Finance Program, Series C-1, 6.30%, 11/15/17 ......... 19,995,000 20,532,666 Greater New Haven Water Pollution Control Authority Regional Water Revenue, Series A, MBIA Insured, 5.00%, 8/15/35 ............................................................... 6,735,000 7,007,902 ------------- 109,757,376 ------------- DISTRICT OF COLUMBIA 1.8% District of Columbia GO, Refunding, Series A, 6.00%, 6/01/07 ..................................................... 8,930,000 9,065,379 Series A, ETM, 6.00%, 6/01/07 ........................................................... 2,845,000 2,891,203 Series A, Pre-Refunded, 6.375%, 6/01/11 ................................................. 22,770,000 23,571,732 Series A, Pre-Refunded, 6.375%, 6/01/16 ................................................. 27,230,000 28,188,768 District of Columbia Hospital Revenue, Medlantic Healthcare Group, Series A, MBIA Insured, ETM, 5.875%, 8/15/19 ....................................................................... 8,850,000 9,182,052 District of Columbia Revenue, Carnegie Endowment, 5.75%, 11/15/26 ..................................................... 5,410,000 5,568,567 Methodist Home Issue, 6.00%, 1/01/29 .................................................... 4,750,000 4,639,657 District of Columbia Tobacco Settlement Financing Corp. Revenue, Asset-Backed Bonds, 6.50%, 5/15/33 ............................................................................. 22,000,000 24,691,260 ------------- 107,798,618 ------------- FLORIDA 8.1% Beacon Tradeport CDD Special Assessment, Commercial Project, Series A, Pre-Refunded, 6.00%, 5/01/16 .......................................................................... 26,130,000 28,303,755 6.20%, 5/01/22 .......................................................................... 23,590,000 26,664,013 Brighton Lakes CDD Special Assessment, Series B, 7.625%, 5/01/31 .............................. 3,215,000 3,390,089 Brooks of Bonita Springs CDD Capital Improvement Revenue, 6.85%, 5/01/31 .......................................................................... 1,420,000 1,502,048 Series A, 6.20%, 5/01/19 ................................................................ 6,625,000 6,792,679 Brooks of Bonita Springs II CDD Capital Improvement Revenue, Series A, 7.00%, 5/01/31 ......... 12,130,000 12,727,160 Capital Region CDD Capital Improvement Revenue, Series A-2, 6.85%, 5/01/31 .................... 2,395,000 2,556,351 Championsgate CDD Capital Improvement Revenue, Series A, 6.25%, 5/01/20 ....................... 2,715,000 2,773,345 Citrus County Hospital Board Revenue, Citrus Memorial Hospital, Refunding, 6.375%, 8/15/32 .................................................................................... 10,550,000 11,282,697 East Homested CDD Special Assessment Revenue, 5.45%, 5/01/36 .................................. 1,500,000 1,504,650 Falcon Trace CDD Special Assessment, 6.00%, 5/01/20 ........................................... 3,690,000 3,778,486 Fleming Plantation CDD Special Assessment, Series B, 7.375%, 5/01/31 .......................... 9,900,000 10,626,561 Florida State Board of Education Capital Outlay GO, Public Education, Refunding, Series D, 6.00%, 6/01/23 ............................................................................. 5,000,000 6,058,150 Gateway Services District Water Management Benefit Tax Revenue, Second Assessment Area, Phase One, 8.00%, 5/01/20 .................................................................. 3,755,000 3,835,395 Groves CDD Special Assessment Revenue, Series A, 7.75%, 5/01/32 ................................................................ 1,770,000 1,766,442 Series B, 7.625%, 5/01/08 ............................................................... 3,400,000 3,399,694
58 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) FLORIDA (CONT.) Halifax Hospital Medical Center Hospital Revenue, Series A, 7.25%, 10/01/24 ................................................................................ $ 4,700,000 $ 5,295,161 10/01/29 ................................................................................ 1,400,000 1,561,812 Heritage Harbor CDD Special Assessment Revenue, Series A, 6.70%, 5/01/19 ...................... 1,500,000 1,531,815 Hillsborough County IDAR, Refunding, Series B, 5.25%, 10/01/28 ................................................................................ 1,500,000 1,544,475 10/01/34 ................................................................................ 7,250,000 7,445,895 Indian Trace CDD, GO, Water Management Special Benefit, Refunding, Sub Series B, 8.25%, 5/01/11 .................................................................................... 12,760,000 13,899,978 Indian Trace CDD Special Assessment, Isles at Weston Project, 5.50%, 5/01/33 .................. 3,000,000 3,016,110 Indian Trail ID, GO, Water Control and Improvement, Unit Development 18, 6.875%, 8/01/10 ......................................................................... 715,000 739,246 7.00%, 8/01/20 .......................................................................... 2,445,000 2,570,062 7.25%, 8/01/31 .......................................................................... 5,725,000 6,028,940 Indigo CDD Capital Improvement Revenue, Refunding, Series A, 7.00%, 5/01/31 ..................................................... 940,000 963,190 Series C, 7.00%, 5/01/30 ................................................................ 4,860,000 4,979,896 Islands at Doral CDD Special Assessment, 6.125%, 5/01/24 ...................................... 1,935,000 2,019,869 Lake Ashton CDD Revenue, Series A, 7.40%, 5/01/32 ............................................. 1,670,000 1,776,930 Lakeland Retirement Community Revenue, first mortgage, Carpenters Home, Refunding, Series A, 6.75%, 1/01/19 ................................................................... 14,955,000 15,171,249 Lakeside Plantation CDD Capital Improvement Revenue, 7.00%, 5/01/07 ........................... 238,402 238,380 Lakewood Ranch CDD No. 2 Benefit Special Assessment, Series A, 8.125%, 5/01/17 ................ 2,610,000 2,660,373 Lakewood Ranch CDD No. 3 Special Assessment Revenue, 7.625%, 5/01/18 .......................... 460,000 472,264 Largo First Mortgage Revenue, The Barrington Project, Series A, 7.50%, 9/01/33 ................ 10,730,000 10,928,290 Lee County Transportation Facilities Revenue, Sanibel Bridges and Causeway, Series B, CIFG Insured, 5.00%, 10/01/30 .............................................................. 11,505,000 11,956,916 Mediterra North CDD Capital Improvement Revenue, Series A, 6.80%, 5/01/31 ..................... 8,440,000 8,960,748 Mediterra South CDD Capital Improvement Revenue, 6.85%, 5/01/31 .......................................................................... 2,640,000 2,798,849 Series B, 6.95%, 5/01/31 ................................................................ 7,390,000 7,737,108 Miami-Dade County Public Facilities Revenue, Jackson Health System, Series A, MBIA Insured, 5.00%, 6/01/32 ............................................................... 14,000,000 14,394,100 Miami-Dade County Stormwater Utility Revenue, MBIA Insured, 5.00%, 4/01/26 .................... 5,750,000 6,011,165 Midtown Miami Community Development Special Assessment Revenue, Series A, 6.25%, 5/01/37 ................................................................ 7,500,000 7,941,300 Series B, 6.50%, 5/01/37 ................................................................ 4,000,000 4,310,680 Mount Dora Country Club CDD Special Assessment Revenue, 7.75%, 5/01/13 ....................... 540,000 547,263 North Springs ID Special Assessment, Water Management, Series B, 8.30%, 5/01/24 .............. 1,520,000 1,533,194 North Springs ID Special Assessment Revenue, Parkland Isles Project, Series A, 7.00%, 5/01/19 .................................................................................... 865,000 887,300 Northern Palm Beach County ID Revenue, Water Control and Improvement, Unit Development No. 43, 6.10%, 8/01/21 ......................................................... 2,675,000 2,785,879 Northwood CDD Special Assessment Revenue, Series B, 7.60%, 5/01/17 ............................ 1,220,000 1,222,818 Oakstead CDD Revenue, Capital Improvement, Series A, 7.20%, 5/01/32 ........................... 3,300,000 3,517,305 Orange County Health Facilities Authority Revenue, Hospital, Adventist Health System Inc., 5.625%, 11/15/32 .......................................... 10,000,000 10,608,700 Orlando Regional Healthcare, 5.75%, 12/01/32 ............................................ 15,000,000 16,039,500
Quarterly Statements of Investments | 59 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) FLORIDA (CONT.) Orange County Tourist Development Tax Revenue, Refunding, AMBAC Insured, 5.00%, 10/01/29 ................................................................................... $ 13,925,000 $ 14,516,952 Parklands West CDD Revenue, Special Assessment, Series A, 6.90%, 5/01/32 ...................... 2,890,000 3,058,082 Parkway Center CDD Special Assessment, Mandatory Put 8/11/04, Series A, 8.25%, 5/01/31 .................................................................................... 1,383,190 1,387,768 Pelican Marsh CDD Special Assessment Revenue, Series A, 7.10%, 5/01/20 ................................................................ 3,490,000 3,726,866 Series A, 7.20%, 5/01/31 ................................................................ 6,390,000 6,830,207 Series B, 6.90%, 5/01/11 ................................................................ 2,770,000 2,826,148 Series C, 7.00%, 5/01/19 ................................................................ 10,805,000 11,207,378 Series D, 6.95%, 5/01/19 ................................................................ 3,740,000 3,874,229 Piney-Z CDD Capital Improvement Revenue, Series A, 7.25%, 5/01/19 ............................ 700,000 726,089 Poinciana CDD Special Assessment, Series A, 7.125%, 5/01/31 .................................. 10,290,000 10,714,154 Reserve CDD Capital Improvement Revenue, Stormwater Management, 8.25%, 5/01/14 ................ 1,950,000 1,976,111 Reserve CDD No. 2 Capital Improvement Revenue, 7.125%, 5/01/30 ................................ 3,645,000 3,775,783 Reserve CDD Utility Revenue, Stormwater Management, Refunding, Series A, 6.625%, 12/01/22 ................................................................................... 3,985,000 4,143,085 River Place St. Lucie CDD Special Assessment Revenue, Series A, 7.625%, 5/01/21 ............................................................... 1,175,000 1,241,388 Series A, 7.625%, 5/01/30 ............................................................... 1,590,000 1,677,466 Series B, 7.25%, 5/01/10 ................................................................ 970,000 987,208 Riverwood Community Development Revenue, Special AD, Series A, 7.75%, 5/01/14 ................. 690,000 735,968 Sampson Creek CDD Capital Improvement Revenue, Series A, 6.95%, 5/01/31 ....................... 2,860,000 2,968,308 Somerset County Revenue, Somerset CDD, 5.30%, 5/01/37 ......................................... 8,170,000 7,938,380 South-Dade Venture CDD Special Assessment Revenue, 6.00%, 5/01/24 ............................. 2,820,000 2,889,005 St. Lucie West Services District Capital Improvement Revenue, Cascades Project, 6.10%, 5/01/18 .................................................................................... 2,095,000 2,146,747 St. Lucie West Services District Special Assessment Revenue, Port St. Lucie, Water Management Benefit, Refunding, Series B, 6.00%, 5/01/09 .......................................................................... 675,000 679,529 6.25%, 5/01/25 .......................................................................... 5,080,000 5,289,448 Stonegate CDD Special Assessment Revenue, 6.00%, 5/01/24 ...................................... 2,235,000 2,309,448 Stoneybrook West CDD Special Assessment Revenue, Series A, 7.00%, 5/01/32 ..................... 2,990,000 3,159,114 Tara CDD No. 1 Capital Improvement Revenue, Series A, 7.15%, 5/01/31 .......................... 1,350,000 1,431,648 University of Central Florida Assn. Inc. COP, Series A, FGIC Insured, 5.00%, 10/01/35 ......... 9,190,000 9,491,983 Venetian CDD Capital Improvement Revenue, Series A, 6.75%, 5/01/34 ............................ 8,565,000 9,123,095 Verandah West CDD Revenue, Series A, 6.625%, 5/01/33 .......................................... 8,795,000 9,159,025 Village CDD No. 4 Special Assessment Revenue, 7.20%, 5/01/31 .................................. 7,045,000 7,592,537 Village Center CDD Recreational Revenue, Sub Series B, 6.30%, 1/01/07 ............................................................ 1,020,000 1,027,956 Sub Series B, 6.25%, 1/01/13 ............................................................ 6,935,000 7,281,681 Sub Series B, 8.25%, 1/01/17 ............................................................ 2,055,000 2,159,415 Sub Series C, 7.375%, 1/01/19 ........................................................... 2,325,000 2,459,153 Vista Lake CDD Capital Improvement Revenue, Series A, 7.20%, 5/01/32 .......................... 2,715,000 2,875,321 Waterchase CDD Capital Improvement Revenue, Series A, 6.70%, 5/01/32 .......................... 2,895,000 3,099,358 Waterlefe CDD Capital Improvement Revenue, Series A, 6.95%, 5/01/31 ........................... 1,190,000 1,268,778
60 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) FLORIDA (CONT.) Waters Edge Community Development District Capital Improvement Revenue, 5.30%, 5/01/36 .................................................................................... $ 2,000,000 $ 2,001,480 Westchase East CDD Capital Improvement Revenue, 7.10%, 5/01/21 ................................ 1,445,000 1,529,388 -------------- 472,343,954 -------------- GEORGIA 2.2% Atlanta Airport Passenger Facility Charge Revenue, General, sub. lien, Series C, FSA Insured, 5.00%, 1/01/33 ................................................... 36,000,000 36,932,400 Series J, FSA Insured, 5.00%, 1/01/29 ................................................... 16,445,000 17,014,162 Atlanta Water and Wastewater Revenue, FSA Insured, 5.00%, 11/01/34 ............................ 20,200,000 20,843,774 Baldwin County Hospital Authority Revenue, Oconee Regional Medical Center, 5.375%, 12/01/28 ................................................................................... 1,470,000 1,312,548 Floyd County Development Authority Environmental Improvement Revenue, Dates-Temple-Inland, 5.70%, 12/01/15 ....................................................... 1,575,000 1,676,729 Forsyth County Hospital Authority Revenue, Anticipation Certificate, Georgia Baptist Health Care System Project, ETM, 6.25%, 10/01/18 ......................................................................... 6,000,000 6,902,880 6.375%, 10/01/28 ........................................................................ 8,000,000 9,937,040 Henry County Hospital Authority Revenue, Henry Medical Center Inc. Project, MBIA Insured, 5.00%, 7/01/34 ............................................................................. 26,145,000 26,989,745 McDuffie County Development Authority Waste Disposal Revenue, Temple-Inland Forest Products, 6.95%, 12/01/23 .................................................................. 5,120,000 5,690,829 -------------- 127,300,107 -------------- HAWAII 0.9% Hawaii State Department of Transportation Special Facilities Revenue, Continental Airlines Inc. Project, Refunding, 7.00%, 6/01/20 ........................................... 4,090,000 3,671,838 Honolulu City and County GO, Series A, MBIA Insured, 5.00%, 7/01/26 ................................................................................. 12,020,000 12,549,361 7/01/27 ................................................................................. 12,640,000 13,166,709 Honolulu City and County Wastewater System Revenue, Senior Series A, FGIC Insured, 5.00%, 7/01/30 ............................................................................. 20,425,000 21,211,567 -------------- 50,599,475 -------------- IDAHO 0.3% Nez Perce County PCR, Potlatch 84, 7.00%, 12/01/14 ............................................................ 2,500,000 2,797,350 Potlatch Corp. Project, Refunding, 6.00%, 10/01/24 ...................................... 17,500,000 17,683,225 -------------- 20,480,575 -------------- ILLINOIS 2.7% Antioch Village Special Service Area No. 1 Special Tax, Deercrest Project, 6.625%, 3/01/33 .................................................................................... 3,350,000 3,381,792 Antioch Village Special Service Area No. 2 Special Tax, Clublands Project, 6.625%, 3/01/33 .................................................................................... 5,544,000 5,596,613 Bolingbrook Special Service Area No. 1 Special Tax, Augusta Village Project, 6.75%, 3/01/32 .......................................................................... 5,454,000 5,666,651 Series 2004, 6.25%, 3/01/32 ............................................................. 3,655,000 3,694,840
Quarterly Statements of Investments | 61 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) ILLINOIS (CONT.) Bolingbrook Special Service Area No. 2 Special Tax, Bloomfield West Project, Series A, 6.625%, 3/01/31 ......................................................................... $ 4,422,000 $ 4,584,464 7.00%, 3/01/31 .......................................................................... 4,880,000 5,165,480 Bolingbrook Special Service Area No. 3 Special Tax, Lakewood Ridge Project, 7.05%, 3/01/31 .................................................................................... 5,877,000 6,192,007 Bryant PCR, Central Illinois Light Co. Project, Refunding, MBIA Insured, 5.90%, 8/01/23 .................................................................................... 11,000,000 11,054,450 Cary Special Tax, Special Service Area No. 1 Cambria, Series A, 7.625%, 3/01/30 ........................... 3,489,000 3,768,608 Special Service Area No. 2 Foxford Hill, 7.50%, 3/01/30 ................................. 5,400,000 5,807,808 Gilberts Special Service Area No. 9 Special Tax, Big Timber Project, Pre-Refunded, 7.75%, 3/01/27 .................................................................................... 6,000,000 7,300,800 Illinois Health Facilities Authority Revenue, Rush Presbyterian Hospital, Refunding, Series A, MBIA Insured, 6.25%, 11/15/20 .......... 9,000,000 9,397,620 Sarah Bush Lincoln Health Center, Refunding, Series B, 6.00%, 2/15/11 ................... 3,370,000 3,517,977 St. Elizabeth's Hospital, Pre-Refunded, 6.25%, 7/01/16 .................................. 1,215,000 1,259,676 St. Elizabeth's Hospital, Pre-Refunded, 6.375%, 7/01/26 ................................. 6,695,000 6,945,862 Thorek Hospital and Medical Center, Refunding, 5.375%, 8/15/28 .......................... 8,595,000 8,610,127 Metropolitan Pier and Exposition Authority Hospitality Facilities Revenue, McCormick Place Convention Center, ETM, 7.00%, 7/01/26 ..................................................................... 7,500,000 9,840,150 Pre-Refunded, 6.25%, 7/01/17 ............................................................ 11,000,000 11,407,660 Minooka Special Assessment, Improvement Prairie Ridge Project, 6.875%, 3/01/33 ................ 3,000,000 3,058,050 Montgomery Special Assessment, Improvement, Lakewood Creek Project, 7.75%, 3/01/30 .................................................................................... 4,826,000 5,230,177 Plano Special Service Area No. 2 Special Tax, Lakewood Springs Project, Series B, 6.375%, 3/01/34 .................................................................................... 8,000,000 8,116,080 Southwestern Development Authority Revenue, Anderson Hospital, 5.625%, 8/15/29 ................ 2,425,000 2,489,772 Wauconda Special Service Area No. 1 Special Tax, Liberty Lakes Project, 6.00%, 3/01/33 .......................................................................... 4,500,000 4,405,590 6.625%, 3/01/33 ......................................................................... 5,280,000 5,363,054 Wonder Lake Special Services Area No. 2 Special Tax, Neumann Homes Project, 6.125%, 3/01/35 .................................................................................... 9,500,000 9,518,050 Yorkville United City Special Service Area Special Tax, No. 04, MPI Grande Reserve Project, Series 104, 6.375%, 3/01/34 ......................... 4,400,000 4,434,056 No. 2003, Windett Ridge Project, Series 101, 6.875%, 3/01/33 ............................ 3,851,000 4,024,372 -------------- 159,831,786 -------------- INDIANA 1.5% Goshen Industrial Revenue, Greencroft Hospital Assn. Inc., Refunding, 5.75%, 8/15/19 ................................................................................. 3,000,000 3,003,360 8/15/28 ................................................................................. 5,000,000 4,955,750 Indiana Health Facility Financing Authority Hospital Revenue, 6.25%, 3/01/25 .......................................................................... 3,200,000 3,408,064 6.00%, 3/01/34 .......................................................................... 12,000,000 12,598,920 Community Foundation Northwest Indiana, Series A, 6.375%, 8/01/31 ....................... 48,500,000 51,344,040 Jackson County Scheck Memorial Hospital, Refunding, 5.125%, 2/15/17 ..................... 1,500,000 1,546,350
62 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) INDIANA (CONT.) Indiana State Development Finance Authority Environmental Revenue, USX Corp. Project, Refunding, 5.60%, 12/01/32 ................................................................. $ 8,200,000 $ 8,435,504 -------------- 85,291,988 -------------- KANSAS 0.2% Wyandotte County City Unified Government Utility System Revenue, Improvement, Series B, FSA Insured, 5.00%, 9/01/32 ................................................................ 10,000,000 10,350,000 -------------- KENTUCKY 2.0% (a)Kenton County Airport Board Airport Revenue, Special Facilities, Delta Airlines Inc. Project, Series A, 7.50%, 2/01/12 ................................................................ 7,050,000 4,651,378 Series A, 7.50%, 2/01/20 ................................................................ 35,275,000 22,664,187 Series A, 7.125%, 2/01/21 ............................................................... 28,830,000 18,523,275 Series A, 6.125%, 2/01/22 ............................................................... 12,940,000 8,022,800 Series B, 7.25%, 2/01/22 ................................................................ 5,315,000 3,414,888 Kentucky Economic Development Finance Authority Health System Revenue, Norton Healthcare Inc., Series C, MBIA Insured, 6.10%, 10/01/22 ......................................................................... 15,975,000 18,129,548 6.15%, 10/01/27 ......................................................................... 10,000,000 11,331,600 Kentucky Economic Development Finance Authority Hospital System Revenue, Appalachian Regional Health Center Facility, Refunding and Improvement, 5.875%, 10/01/22 ............... 6,835,000 6,556,132 Maysville Solid Waste Disposal Facilities Revenue, Inland Container Corp. Project, Refunding, 6.90%, 9/01/22 ............................................................................. 16,000,000 17,744,160 Powderly Industrial Development First Mortgage Revenue, Kroger Co., Refunding, 7.375%, 9/01/06 .................................................................................... 130,000 130,618 Russell Health System Revenue, Pre-Refunded, 8.10%, 7/01/15 ................................... 6,195,000 6,474,246 -------------- 117,642,832 -------------- LOUISIANA 1.3% Beauregard Parish Revenue, Boise Cascade Corporate Project, Refunding, 6.80%, 2/01/27 .................................................................................... 13,990,000 15,154,528 Louisiana Public Facilities Authority Revenue, FHA Insured Mortgage, Baton Rouge General, MBIA Insured, 5.25%, 7/01/33 ............................................................... 32,240,000 33,802,673 New Orleans Sewage Service Revenue, BAN, 3.00%, 7/26/06 ....................................... 1,250,000 1,206,587 Pointe Coupee Parish PCR, Gulf States Utilities Co. Project, Refunding, 6.70%, 3/01/13 ........ 4,850,000 4,856,256 West Feliciana Parish PCR, Entergy Gulf States Project, Refunding, Series B, 6.60%, 9/01/28 .................................................................................... 20,750,000 20,962,480 -------------- 75,982,524 -------------- MAINE 0.6% Rumford PCR, Boise Cascade Corp. Project, Refunding, 6.625%, 7/01/20 .......................... 4,800,000 4,903,008 Skowhegan PCR, S.D. Warren Co., Series A, 6.65%, 10/15/15 ............................................................... 24,570,000 24,880,073 Series B, 6.65%, 10/15/15 ............................................................... 4,940,000 5,002,343 -------------- 34,785,424 --------------
Quarterly Statements of Investments | 63 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MARYLAND 0.6% Gaithersberg Hospital Facilities Revenue, Shady Grove Adventist Hospital, Refunding and Improvement, Series B, 8.50%, 9/01/07 ...................................................... $ 2,290,000 $ 2,384,371 Maryland State CDA, Department of Housing and CDR, Series A, 5.875%, 7/01/16 .................. 2,270,000 2,340,393 Maryland State EDC Revenue, Chesapeake Bay, senior lien, Series B, 7.50%, 12/01/14 .................................................. 1,915,000 2,043,286 senior lien, Series B, 7.625%, 12/01/22 ................................................. 6,740,000 7,201,286 Series B, 7.75%, 12/01/31 ............................................................... 16,160,000 17,177,433 Maryland State Industrial Development Financing Authority EDR, Our Lady of Good Counsel School, Series A, 5.50%, 5/01/20 .......................................................................... 420,000 427,505 6.00%, 5/01/35 .......................................................................... 1,000,000 1,018,120 Takoma Park Hospital Facilities Revenue, Washington Adventist Hospital Project, Series B, 8.50%, 9/01/07 ............................................................................. 3,820,000 3,999,311 -------------- 36,591,705 -------------- MASSACHUSETTS 1.1% Massachusetts Bay Transportation Authority Revenue, General Transportation System, Series A, 7.00%, 3/01/21 ............................................................................. 2,000,000 2,476,840 Massachusetts Health and Educational Facilites Authority Revenue, Lahey Clinic Medical Center, Series B, FGIC Insured, 5.00%, 8/15/30 ............................................. 12,460,000 12,835,669 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 3,336,510 Massachusetts State Development Finance Agency Revenue, Berkshire Retirement Project, first mortgage, 5.60%, 7/01/19 ............................ 1,030,000 1,040,743 Berkshire Retirement Project, first mortgage, 5.625%, 7/01/29 ........................... 1,620,000 1,623,370 Loomis Community Project, first mortgage, Refunding, Series A, 5.75%, 7/01/23 ........... 3,500,000 3,543,225 Loomis Community Project, first mortgage, Series A, 5.625%, 7/01/15 ..................... 1,850,000 1,876,289 Massachusetts State Health and Educational Facilities Authority Revenue, Saint Memorial Medical Center, Refunding, Series A, 5.75%, 10/01/06 ......................................................................... 875,000 878,745 6.00%, 10/01/23 ......................................................................... 6,235,000 6,264,990 (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 Massachusetts State School Building Authority Dedicated Sales Tax Revenue, Series A, FSA Insured, 5.00%, 8/15/30 ................................................................ 31,950,000 33,166,336 -------------- 67,142,269 -------------- MICHIGAN 3.3% Delta County EDC Environmental Improvement Revenue, Mead Escanaba Paper, Series A, Pre-Refunded, 6.25%, 4/15/27 ............................................................... 10,500,000 12,068,805 Garden City Hospital Financing Authority Hospital Revenue, Refunding, 5.625%, 9/01/10 ......................................................................... 1,640,000 1,659,467 5.75%, 9/01/17 .......................................................................... 1,000,000 983,170 Gaylord Hospital Finance Authority Ltd. Obligation Revenue, Otsego Memorial Hospital, Refunding, 6.50%, 1/01/31 ................................................................................. 1,000,000 1,001,290 1/01/37 ................................................................................. 1,000,000 998,610
64 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MICHIGAN (CONT.) Kent Hospital Finance Authority Health Care Revenue, Butterworth Health System, Series A, MBIA Insured, Pre-Refunded, 6.125%, 1/15/21 ................................................ $ 11,770,000 $ 12,043,770 Michigan State Building Authority Revenue, Facilities Program, Refunding, Series I, AMBAC Insured, 5.00%, 10/15/33 ................................................ 12,000,000 12,453,600 Series II, MBIA Insured, 5.00%, 10/15/29 ................................................ 16,585,000 17,139,105 Michigan State Hospital Finance Authority Revenue, Ascension Health Credit, Series A, MBIA Insured, Pre-Refunded, 6.125%, 11/15/23 ......... 18,000,000 19,897,380 Detroit Medical Center Obligation Group, Refunding, Series A, 6.25%, 8/15/13 ............ 7,500,000 7,505,625 Detroit Medical Center Obligation Group, Refunding, Series A, 6.50%, 8/15/18 ............ 30,205,000 30,231,882 Detroit Medical Center Obligation Group, Refunding, Series B, 5.50%, 8/15/23 ............ 500,000 471,365 Detroit Medical Center Obligation Group, Series A, 5.25%, 8/15/23 ....................... 500,000 457,880 Marquette, 5.00%, 5/15/34 ............................................................... 6,000,000 5,901,420 Memorial Healthcare Center, Refunding, 5.75%, 11/15/15 .................................. 1,000,000 1,050,860 Mercy Health Services, Series Q, AMBAC Insured, ETM, 5.75%, 8/15/16 ..................... 7,310,000 7,460,294 Sinai Hospital, Refunding, 6.625%, 1/01/16 .............................................. 2,990,000 3,036,166 Sinai Hospital, Refunding, 6.70%, 1/01/26 ............................................... 7,250,000 7,329,967 Michigan State Strategic Fund Ltd. Obligation Revenue, Detroit Edison Co. Pollution Control Project, Refunding, Series C, 5.45%, 9/01/29 ............................................... 11,000,000 11,471,680 Midland County EDR, Refunding, Series A, 6.875%, 7/23/09 ............................................................... 35,000,000 34,732,250 Series B, 6.75%, 7/23/09 ................................................................ 4,000,000 3,969,320 Tawas City Hospital Finance Authority Revenue, Tawas St. Joseph's Hospital Project, Series A, ETM, 5.60%, 2/15/13 ........................................................................ 1,565,000 1,663,392 -------------- 193,527,298 -------------- MINNESOTA 1.9% Hubbard County Solid Waste Disposal Revenue, Potlatch Corp. Project, 7.25%, 8/01/14 ........... 9,000,000 10,088,190 Mahtomedi Senior Housing Revenue, Saint Andrews Village Project, Refunding, 5.75%, 12/01/40 ................................................................................... 5,000,000 4,889,450 Minneapolis and St. Paul Metropolitan Airports Commission Airport Revenue, Refunding, Sub Series A, AMBAC Insured, 5.00%, 1/01/29 ............................................. 5,000,000 5,146,800 Sub Series C, FGIC Insured, 5.00%, 1/01/31 .............................................. 21,185,000 21,743,860 (a)Minneapolis and St. Paul Metropolitan Airports Commission Special Facilities Revenue, Northwest Airlines Inc. Project, Refunding, 7.375%, 4/01/25 .............................................................. 5,000,000 3,214,400 Series A, 7.00%, 4/01/25 ................................................................ 6,000,000 3,782,460 Minneapolis Health Care Facility Revenue, Augustana Chapel View Homes, Series D, 5.875%, 6/01/35 .................................. 5,075,000 5,098,751 Fairview Health Services, Series A, Pre-Refunded, 5.625%, 5/15/32 ....................... 18,380,000 20,649,378 Jones-Harrison Residence Project, 5.70%, 10/01/35 ....................................... 1,000,000 988,460 Minneapolis Health Care Revenue, Fairview Health Services, AMBAC Insured, 5.00%, 11/15/30 ................................................................................... 8,200,000 8,532,264 Minnesota Agriculture and Economic Development Board Revenue, Health Care System, Refunding, Series A, 6.375%, 11/15/29 ................................................... 175,000 194,413 Series A, Pre-Refunded, 6.375%, 11/15/29 ................................................ 6,325,000 7,187,920 Minnesota State HFAR, Rental Housing, Refunding, Series D, MBIA Insured, 5.95%, 2/01/18 .................................................................................... 380,000 382,561 Minnesota State Municipal Power Agency Electric Revenue, 5.00%, 10/01/35 ...................... 5,000,000 5,061,600
Quarterly Statements of Investments | 65 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MINNESOTA (CONT.) Roseville MFHR, Rosepointe I Project, Refunding, Series C, 8.00%, 12/01/29 ................... $ 3,220,000 $ 3,376,589 St. Paul Housing and RDA Hospital Revenue, Healtheast Project, 6.00%, 11/15/35 ............... 10,000,000 10,535,300 St. Paul Housing and RDA Tax Increment Revenue, Energy Park Project, Series A, 8.625%, 9/01/07 .................................................................................... 390,000 391,525 -------------- 111,263,921 -------------- MISSISSIPPI 0.6% Claiborne County PCR, Systems Energy Resources Inc., Refunding, 6.20%, 2/01/26 ................ 33,295,000 33,702,864 -------------- MISSOURI 0.6% Lake of the Ozarks Community Board Corp. Bridge System Revenue, Pre-Refunded, 6.25%, 12/01/16 ........................................................... 1,000,000 1,047,970 Pre-Refunded, 6.40%, 12/01/25 ........................................................... 3,000,000 3,152,370 Refunding, 5.25%, 12/01/20 .............................................................. 8,350,000 8,113,778 St. Louis County IDA Industrial Revenue, Kiel Center, Refunding, 7.625%, 12/01/09 ........................................................................ 8,000,000 8,146,560 7.75%, 12/01/13 ......................................................................... 5,175,000 5,270,065 7.875%, 12/01/24 ........................................................................ 6,000,000 6,110,220 West Plains IDA Hospital Revenue, Ozarks Medical Center, 6.30%, 11/15/11 ......................................................................... 780,000 816,473 6.75%, 11/15/24 ......................................................................... 1,870,000 1,930,756 Refunding, 5.50%, 11/15/12 .............................................................. 500,000 503,500 -------------- 35,091,692 -------------- MONTANA 0.2% Forsyth PCR, Puget Sound Energy, Refunding, Series A, AMBAC Insured, 5.00%, 3/01/31 ........... 10,220,000 10,574,941 -------------- NEBRASKA 0.0%(b) Scotts Bluff County Hospital Authority No. 1 Hospital Revenue, Regional West Medical Center, 6.375%, 12/15/08 ........................................................................... 1,145,000 1,146,878 -------------- NEVADA 3.2% Clark County ID, Special Local Improvement, Summerlin, No. 151, 5.00%, 8/01/20 ................................................................................. 765,000 757,901 8/01/25 ................................................................................. 2,405,000 2,363,490 Clark County ID Special Assessment, Special ID No. 132, Local Improvement, 6.875%, 2/01/21 .................................. 3,910,000 4,036,058 Special ID No. 142, Local Improvement, 6.375%, 8/01/23 .................................. 4,200,000 4,294,038 Clark County IDR, Nevada Power Co. Project, Refunding, Series B, 5.90%, 10/01/30 .............. 5,125,000 5,126,794 Director of the State Department of Business and Industry Revenue, Las Vegas Monorail Project, second tier, 7.25%, 1/01/23 .......................................................................... 8,000,000 8,361,680 7.375%, 1/01/30 ......................................................................... 9,000,000 9,398,430 7.375%, 1/01/40 ......................................................................... 49,750,000 51,700,200 Henderson Health Care Facility Revenue, Catholic Healthcare West, Series A, 5.625%, 7/01/24 .................................................................................... 7,000,000 7,437,080
66 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) NEVADA (CONT.) Henderson Local ID Special Assessment, No. T-2, 9.50%, 8/01/11 ................................................................. $ 755,000 $ 755,574 No. T-4C, Green Valley, Refunding, Series A, 5.90%, 11/01/18 ............................ 3,085,000 3,185,386 No. T-12, Series A, 7.375%, 8/01/18 ..................................................... 40,175,000 42,796,017 No. T-16, 4.90%, 3/01/16 ................................................................ 1,390,000 1,391,001 No. T-16, 5.00%, 3/01/18 ................................................................ 1,000,000 1,000,800 No. T-16, 5.00%, 3/01/19 ................................................................ 1,000,000 997,050 No. T-16, 5.10%, 3/01/22 ................................................................ 1,500,000 1,499,880 No. T-16, 5.125%, 3/01/25 ............................................................... 1,580,000 1,573,174 No. T-17, 5.00%, 9/01/15 ................................................................ 720,000 729,929 No. T-17, 5.00%, 9/01/16 ................................................................ 740,000 744,840 No. T-17, 5.00%, 9/01/25 ................................................................ 1,400,000 1,382,598 Las Vegas Local Improvement Bonds Special Assessment, Special ID No. 404, Refunding, FSA Insured, 5.85%, 11/01/09 ............................. 2,765,000 2,793,452 Special ID No. 607, 6.25%, 6/01/24 ...................................................... 5,000,000 5,155,950 Special ID No. 808, Summerlin Area, 6.75%, 6/01/21 ...................................... 8,340,000 8,659,922 Las Vegas Special Assessment, ID No. 505, Elkhorn Springs, 8.00%, 9/15/13 ..................... 3,835,000 3,874,730 Washoe County Revenue, Reno-Sparks Convention Center Project, FSA Insured, Pre-Refunded, 6.40%, 7/01/29 ............................................................................. 15,415,000 17,103,559 -------------- 187,119,533 -------------- NEW HAMPSHIRE 0.3% New Hampshire Higher Education and Health Facilities Authority Revenue, Hillcrest Terrace, 7.50%, 7/01/24 ....................................................... 16,450,000 16,815,355 Littleton Hospital Assn., Series B, 5.90%, 5/01/28 ...................................... 2,000,000 2,042,560 New Hampshire Catholic Charities, Refunding, Series A, 5.75%, 8/01/11 ................... 1,145,000 1,165,312 -------------- 20,023,227 -------------- NEW JERSEY 4.8% Hudson County Improvement Authority Solid Waste Systems Revenue, Refunding, Series 1, 6.00%, 1/01/19 ................................................................ 2,180,000 2,191,576 Series 1, 6.00%, 1/01/29 ................................................................ 5,000,000 5,017,600 Series 2, 6.125%, 1/01/19 ............................................................... 2,125,000 2,145,783 Series 2, 6.125%, 1/01/29 ............................................................... 5,105,000 5,145,789 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 10,874,804 New Jersey EDA Revenue, Cigarette Tax, 5.50%, 6/15/24 ........................................................... 23,000,000 23,971,290 Cigarette Tax, 5.50%, 6/15/31 ........................................................... 6,500,000 6,700,525 Cigarette Tax, 5.75%, 6/15/34 ........................................................... 10,000,000 10,480,000 first mortgage, Keswick Pines, Refunding, 5.75%, 1/01/24 ................................ 1,500,000 1,513,995 first mortgage, Presbyterian, Series A, 6.25%, 11/01/20 ................................. 7,635,000 7,880,236 New Jersey EDA Special Facility Revenue, Continental Airlines Inc. Project, 6.625%, 9/15/12 ......................................................................... 25,525,000 24,028,980 6.25%, 9/15/19 .......................................................................... 42,000,000 36,428,280 6.40%, 9/15/23 .......................................................................... 79,890,000 68,874,767
Quarterly Statements of Investments | 67 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) NEW JERSEY (CONT.) New Jersey Health Care Facilities Financing Authority Revenue, Lutheran Home, Series A, 8.40%, 7/01/19 ................................................. $ 2,100,000 $ 2,102,520 South Jersey Hospital, 5.875%, 7/01/21 .................................................. 7,500,000 7,867,725 South Jersey Hospital, 6.00%, 7/01/32 ................................................... 18,000,000 18,966,060 Trinitas Hospital Obligation Group, Refunding, 7.50%, 7/01/30 ........................... 5,000,000 5,564,400 New Jersey State Turnpike Authority Turnpike Revenue, Refunding, Series A, FSA Insured, 5.00%, 1/01/25 ........................................ 13,700,000 14,361,162 Series C, FSA Insured, 5.00%, 1/01/35 ................................................... 10,195,000 10,594,032 Tobacco Settlement Financing Corp. Revenue, Asset-Backed, Refunding, 6.00%, 6/01/37 .......................................................................... 10,000,000 10,341,300 6.125%, 6/01/42 ......................................................................... 9,050,000 9,395,076 -------------- 284,445,900 -------------- 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 25,240,517 Public Service Co. of New Mexico, San Juan Project, Refunding, Series D, 6.375%, 4/01/22 .............................................................................. 66,125,000 70,023,730 Public Service Co. Project, Series A, 6.60%, 10/01/29 ................................... 6,000,000 6,554,220 Tucson Electric Power Co., Series A, 6.95%, 10/01/20 .................................... 37,000,000 38,623,930 (c)New Mexico State Hospital Equipment Loan Council Hospital Revenue, Saint Vincent Hospital, Series A, Radian Insured, 5.25%, 7/01/30 .......................................................................... 4,360,000 4,488,751 5.00%, 7/01/35 .......................................................................... 3,000,000 2,990,700 -------------- 147,921,848 -------------- NEW YORK 10.9% Corinth IDA Environmental Improvement Revenue, International Paper Co. Project, Refunding, Series A, 5.75%, 2/01/22 ................................................................... 2,000,000 2,072,120 Liberty Development Corp. Revenue, Goldman Sachs Headquarters, 5.25%, 10/01/35 ................ 25,000,000 27,707,750 MTA Revenue, Series A, MBIA Insured, 4.75%, 11/15/28 ................................................. 15,000,000 15,201,450 Series B, AMBAC Insured, 5.00%, 11/15/30 ................................................ 10,000,000 10,380,800 (c)Transportation, Series F, 5.00%, 11/15/30 ............................................... 7,000,000 7,181,860 MTA Transit Facilities Revenue, Series A, MBIA Insured, Pre-Refunded, 5.875%, 7/01/27 ......... 22,700,000 23,958,034 New York City GO, Fiscal 2003, Series I, 5.00%, 3/01/24 ................................................... 5,000,000 5,134,000 Fiscal 2003, Series I, 5.00%, 3/01/25 ................................................... 9,000,000 9,224,460 Refunding, Series F, 6.00%, 8/01/11 ..................................................... 10,000,000 10,315,300 Refunding, Series H, 6.125%, 8/01/25 .................................................... 4,710,000 4,944,370 Refunding, Series J, 6.00%, 8/01/21 ..................................................... 3,535,000 3,703,867 Series B, 7.00%, 2/01/18 ................................................................ 115,000 115,673 Series B, 6.00%, 8/15/26 ................................................................ 155,000 160,038 Series B, Pre-Refunded, 6.00%, 8/15/26 .................................................. 4,845,000 5,009,972 Series D, 7.625%, 2/01/14 ............................................................... 5,000 5,031 Series F, 7.50%, 2/01/21 ................................................................ 85,000 85,516 Series G, 7.50%, 2/01/22 ................................................................ 10,000 10,061
68 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 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, Pre-Refunded, 6.125%, 10/15/11 ................................................ $ 20,480,000 $ 21,738,496 Series G, Pre-Refunded, 6.20%, 10/15/14 ................................................. 10,000,000 10,627,900 Series H, 6.25%, 8/01/15 ................................................................ 20,435,000 21,499,459 Series H, Pre-Refunded, 6.25%, 8/01/15 .................................................. 4,565,000 4,829,314 Series H, Pre-Refunded, 6.125%, 8/01/25 ................................................. 890,000 939,751 Series I, 6.25%, 4/15/17 ................................................................ 35,000 36,567 Series I, Pre-Refunded, 6.25%, 4/15/17 .................................................. 25,335,000 26,614,924 Series I, Pre-Refunded, 6.25%, 4/15/27 .................................................. 22,920,000 24,077,918 Series J, Pre-Refunded, 6.00%, 8/01/21 .................................................. 6,465,000 6,813,528 Series O, 5.00%, 6/01/19 ................................................................ 7,350,000 7,694,862 Series O, 5.00%, 6/01/33 ................................................................ 4,000,000 4,078,720 New York City IDA Revenue, Liberty, Seven World Trade Center, Series A, 6.25%, 3/01/15 .......................................................................... 10,000,000 10,480,300 6.50%, 3/01/35 .......................................................................... 50,000,000 52,864,500 New York City IDA Special Facility Revenue, American Airlines Inc., JFK International Airport Project, 7.50%, 8/01/16 ............... 15,000,000 14,582,400 American Airlines Inc., JFK International Airport Project, 7.625%, 8/01/25 .............. 20,000,000 19,279,000 American Airlines Inc., JFK International Airport Project, 7.75%, 8/01/31 ............... 15,000,000 14,523,300 American Airlines Inc., JFK International Airport Project, Series A, 8.00%, 8/01/12 ..... 74,000,000 74,973,840 British Airways PLC Project, 7.625%, 12/01/32 ........................................... 15,000,000 16,438,050 New York City IDA, Civic Facility Revenue, Amboy Properties Corp. Project, Refunding, 6.75%, 6/01/20 ............................... 6,665,000 6,782,304 Series C, 6.80%, 6/01/28 ................................................................ 5,000,000 5,287,950 Staten Island University Hospital Project, Series C, 6.45%, 7/01/32 ..................... 1,490,000 1,520,843 New York City Municipal Water Finance Authority Water and Sewer System Revenue, Series C, 5.00%, 6/15/30 ................................................................ 15,000,000 15,516,900 Series E, 5.00%, 6/15/34 ................................................................ 10,000,000 10,239,200 New York State Dormitory Authority Revenues, City University System, Third General Residence, Series 2, Pre-Refunded, 6.00%, 7/01/26 .............................................................................. 6,100,000 6,315,696 Mental Health Services, Series A, Pre-Refunded, 6.00%, 8/15/17 .......................... 8,940,000 9,402,734 State University Educational Facilities, Pre-Refunded, 6.00%, 5/15/18 ................... 5,000,000 5,162,000 Supported Debt, Mental Health Services, Series A, 6.00%, 8/15/17 ........................ 115,000 120,410 Supported Debt, Mental Health Services, Series A, Pre-Refunded, 6.00%, 8/15/17 .......... 2,185,000 2,298,096 New York State HFA Service Contract Obligation Revenue, Series A, 6.00%, 3/15/26 .......................................................................... 220,000 227,880 Pre-Refunded, 6.00%, 3/15/26 ............................................................ 4,755,000 4,950,858 New York State Mortgage Agency Revenue, Homeowners Mortgage, Series 61, 5.80%, 10/01/16 ................................................................................... 5,000,000 5,112,100 New York State Urban Development Corp. Revenue, Correctional Capital Facilities, Series 7, Pre-Refunded, 5.70%, 1/01/27 ............................................................... 4,750,000 4,968,452 Oneida County IDAR, Civic Facility, St. Elizabeth Medical, Series B, 6.00%, 12/01/19 .......... 1,000,000 1,013,010
Quarterly Statements of Investments | 69 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) NEW YORK (CONT.) Onondaga County IDA Solid Waste Disposal Facility Revenue, Solvay Paperboard LLC Project, Refunding, 6.80%, 11/01/14 ......................................................................... $ 5,000,000 $ 5,264,350 7.00%, 11/01/30 ......................................................................... 7,000,000 7,360,850 Port Authority of New York and New Jersey Revenue, Consolidated, 140th, XLCA Insured, 5.00%, 12/01/27 ............................................................................ 27,020,000 28,359,381 Port Authority of New York and New Jersey Special Obligation Revenue, 3rd Installment, 7.00%, 10/01/07 ........................................................ 2,800,000 2,850,736 4th Installment, Special Project, 6.75%, 10/01/11 ....................................... 925,000 964,757 5th Installment, 6.75%, 10/01/19 ........................................................ 17,500,000 18,250,575 Continental Airlines Inc., Eastern Project, La Guardia, 9.00%, 12/01/10 ................. 10,000,000 10,018,700 Continental Airlines Inc., Eastern Project, La Guardia, 9.125%, 12/01/15 ................ 27,650,000 27,724,655 Utica IDA Civic Facility Revenue, Utica College Civic Facility, 6.75%, 12/01/21 ......................................................................... 1,250,000 1,349,525 6.85%, 12/01/31 ......................................................................... 2,000,000 2,159,760 -------------- 640,524,853 -------------- NORTH CAROLINA 1.8% Charlotte Airport Revenue, Series A, MBIA Insured, 5.00%, 7/01/29 ............................. 15,310,000 15,848,912 North Carolina Eastern Municipal Power Agency Power System Revenue, Refunding, Series A, 5.75%, 1/01/26 ..................................................... 37,500,000 39,483,750 Refunding, Series B, 5.75%, 1/01/24 ..................................................... 35,750,000 37,672,992 Refunding, Series D, 6.75%, 1/01/26 ..................................................... 5,000,000 5,514,700 Series D, 6.70%, 1/01/19 ................................................................ 2,000,000 2,209,280 North Carolina HFAR, SF, Series II, FHA Insured, 6.20%, 3/01/16 ................................................................................. 1,195,000 1,221,565 9/01/17 ................................................................................. 820,000 838,081 North Carolina Medical Care Commission Retirement Facilties Revenue, First Mortgage, United Methodist, Refunding, Series C, 5.25%, 10/01/24 ......................................................................... 920,000 923,432 5.50%, 10/01/32 ......................................................................... 1,600,000 1,616,928 -------------- 105,329,640 -------------- OHIO 1.7% Akron COP, Akron Municipal Baseball Stadium Project, Capital Appreciation, ETM, 6.30%, 12/01/05 .................................................................... 1,700,000 1,700,000 ETM, 6.40%, 12/01/06 .................................................................... 1,685,000 1,737,066 Pre-Refunded, 6.50%, 12/01/07 ........................................................... 670,000 704,338 Pre-Refunded, 6.90%, 12/01/16 ........................................................... 2,500,000 2,637,775 Centerville City School District GO, School Improvement, FSA Insured, 5.00%, 12/01/30 ......... 9,260,000 9,628,826 Cuyahoga County Hospital Revenue, Refunding, 5.50%, 1/01/29 ................................... 11,500,000 12,027,850 Dayton Special Facilities Revenue, Emery Air Freight Corp., Emery Worldwide Air Inc., Refunding, Series C, 6.05%, 10/01/09 ............................................................... 14,250,000 15,480,202 Series E, 6.05%, 10/01/09 ............................................................... 5,250,000 5,703,232 Series F, 6.05%, 10/01/09 ............................................................... 1,000,000 1,086,330
70 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) OHIO (CONT.) Franklin County Health Care Facilities Revenue, Ohio Presbyterian, Series A, 7.125%, 7/01/29 ............................................ $ 1,000,000 $ 1,094,480 Presbyterian Retirement Services, Refunding, 5.50%, 7/01/17 ............................. 3,100,000 3,132,271 Presbyterian Retirement Services, Refunding, 5.50%, 7/01/21 ............................. 950,000 951,473 Presbyterian Retirement Services, Series A, 6.625%, 7/01/13 ............................. 1,000,000 1,043,510 Lucas County Health Facilities Revenue, Presbyterian Retirement Services, Refunding, Series A, 6.625%, 7/01/14 ......................................................................... 1,000,000 1,042,430 6.75%, 7/01/20 .......................................................................... 2,000,000 2,076,540 Montgomery County Health System Revenue, Series B-1, Pre-Refunded, 8.10%, 7/01/18 ................................................ 5,445,000 5,693,821 Series B-2, Pre-Refunded, 8.10%, 7/01/18 ................................................ 5,610,000 5,866,706 St. Leonard, Series B, Pre-Refunded, 8.10%, 7/01/18 ..................................... 8,300,000 8,678,748 Ohio State Air Quality Development Authority Revenue, PCR, Cleveland Electric, Refunding, Series B, 6.00%, 8/01/20 ................................................................... 6,250,000 6,543,375 Oregon City School District GO, AMBAC Insured, 5.00%, 12/01/27 ................................ 5,000,000 5,214,900 Toledo Lucas County Port Authority Airport Revenue, Bax Global Project, Refunding, Series 1, 6.25%, 11/01/13 ............................................................................ 4,200,000 4,340,406 Willoughby IDR, Presbyterian Retirement Services, Refunding, Series A, 6.875%, 7/01/16 .................................................................................... 1,500,000 1,551,915 -------------- 97,936,194 -------------- OKLAHOMA 0.2% Oklahoma Development Finance Authority Revenue, Comanche County Hospital Project, Series B, 6.60%, 7/01/31 ................................................................... 5,000,000 5,472,400 Valley View Hospital Authority Revenue, Valley View Regional Medical Center, Refunding, 6.00%, 8/15/14 ............................................................................. 4,000,000 4,132,360 -------------- 9,604,760 -------------- OREGON 2.5% Klamath Falls Electric Revenue, Klamath Cogeneration Project, senior lien, 7.00%, 1/01/25 .......................................................................... 12,600,000 11,120,256 Refunding, 5.75%, 1/01/13 ............................................................... 28,000,000 24,769,360 Refunding, 5.875%, 1/01/16 .............................................................. 26,650,000 22,144,018 Refunding, 6.00%, 1/01/25 ............................................................... 77,900,000 61,332,228 Oregon State Department of Administrative Services COP, Series A, AMBAC Insured, Pre-Refunded, 6.00%, 5/01/26 ............................................. 9,400,000 10,456,466 FSA Insured, 5.00%, 5/01/30 ............................................................. 8,195,000 8,493,298 Oregon State Health Housing Educational and Cultural Facilities Authority Revenue, Linfield College Project, Series A, 6.75%, 10/01/25 ......................................................................... 5,000 5,496 Pre-Refunded, 6.75%, 10/01/25 ........................................................... 5,215,000 5,984,838 -------------- 144,305,960 -------------- PENNSYLVANIA 5.6% Allegheny County Hospital Development Authority Revenue, Health System, Series A, MBIA Insured, 6.50%, 11/15/30 ................................................. 10,000,000 11,391,900 Series B, 9.25%, 11/15/15 ............................................................... 24,000,000 28,654,320 Series B, 9.25%, 11/15/22 ............................................................... 24,000,000 28,538,160
Quarterly Statements of Investments | 71 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) PENNSYLVANIA (CONT.) Allegheny County IDAR, Environmental Improvement, USX Corp., Refunding, 6.10%, 7/15/20 .................................................................................... $ 5,500,000 $ 5,745,300 Allegheny County Sanitation Authority Sewer Revenue, Refunding, Series A, MBIA Insured, 5.00%, 12/01/30 ............................................................................ 12,775,000 13,253,040 Carbon County IDAR, Panther Creek Partner Project, Refunding, 6.65%, 5/01/10 .................. 3,125,000 3,308,469 Chartiers Valley Industrial and Commercial Development Authority First Mortgage Revenue, Asbury Health Center Project, Refunding, 7.40%, 12/01/15 ................................... 5,250,000 5,354,318 Delaware County IDAR, Resource Recovery Facility, Refunding, Series A, 6.10%, 1/01/06 .......................................................................... 2,140,000 2,143,467 6.50%, 1/01/08 .......................................................................... 425,000 444,962 6.10%, 7/01/13 .......................................................................... 20,500,000 21,720,775 6.20%, 7/01/19 .......................................................................... 9,500,000 9,904,320 Lancaster IDAR, Garden Spot Village Project, Series A, 7.625%, 5/01/31 ........................ 1,650,000 1,782,957 Lehigh County IDA, PCR, Pennsylvania Power and Light Electrical Utilities Corp. Project, Refunding, Series A, FGIC Insured, 4.70%, 9/01/29 .......................................... 19,000,000 18,998,670 Pennsylvania Convention Center Authority Revenue, Refunding, Series A, 6.60%, 9/01/09 .......................................................................... 13,100,000 13,231,000 6.70%, 9/01/14 .......................................................................... 20,760,000 20,967,600 6.75%, 9/01/19 .......................................................................... 15,800,000 15,958,000 Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue, Reliant Energy Seward, Series A, 6.75%, 12/01/36 ........................................... 65,000,000 69,316,650 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 13,541,840 Philadelphia IDA Health Care Facility Revenue, Pauls Run, Series A, 5.85%, 5/15/13 ............ 2,200,000 2,244,660 Philadelphia Water and Wastewater Revenue, Series A, FSA Insured, 5.00%, 7/01/27 .............. 10,020,000 10,413,786 Sayre Health Care Facilities Authority Revenue, Guthrie Health, Series A, 5.75%, 12/01/21 ................................................................................... 3,000,000 3,206,520 South Fork Municipal Authority Hospital Revenue, Conemaugh Valley Memorial Hospital Project, Series A, MBIA Insured, Pre-Refunded, 5.75%, 7/01/16 .............................. 8,130,000 8,408,453 State Public School Building Authority School Revenue, Philadelphia School District Project, FSA Insured, 5.00%, 6/01/33 ................................................................ 13,750,000 14,147,650 Washington County IDA, PCR, West Pennsylvania Power Co., Series G, AMBAC Insured, 6.05%, 4/01/14 ............................................................................. 5,025,000 5,128,967 -------------- 327,805,784 -------------- RHODE ISLAND 0.2% Rhode Island State Health and Educational Building Corp. Revenue, Hospital Financing, Lifespan Obligation Group, 6.50%, 8/15/32 .......................................................................... 8,000,000 8,823,040 MBIA Insured, 5.75%, 5/15/23 ............................................................ 3,500,000 3,670,380 -------------- 12,493,420 -------------- 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 17,073,375 Greenville County School District Installment Purchase Revenue, Building Equity Sooner Tomorrow, Refunding, 5.00%, 12/01/28 ....................................................... 10,000,000 10,232,600
72 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) SOUTH CAROLINA (CONT.) Lancaster Educational Assistance Program Inc. Revenue, School District of Lancaster County Project, 5.00%, 12/01/26 ................................................................... $ 15,015,000 $ 14,956,892 Tobacco Settlement Revenue Management Authority Tobacco Settlement Revenue, Series B, 6.375%, 5/15/30 ............................................................................ 3,750,000 4,177,237 -------------- 46,440,104 -------------- 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 5,144,750 -------------- TEXAS 2.1% Angelina and Neches River Authority Waste Disposal Revenue, Adjusted Temple Inland Forest Products, 6.95%, 5/01/23 ................................................................... 1,750,000 1,939,508 Austin Convention Enterprises Inc. Convention Center Revenue, First Tier, Series A, 6.70%, 1/01/32 .................................................................................... 10,000,000 10,610,500 Bexar County Health Facilities Development Corp. Revenue, Incarnate Word Health Services, FSA Insured, ETM, 6.00%, 11/15/15 .......................................................... 8,750,000 9,027,550 Brazos River Authority PCR, Texas Utilities, Refunding, 5.40%, 5/01/29 .............................................. 2,500,000 2,512,500 TXU Energy Co. Project, Refunding, Series B, 6.30%, 7/01/32 ............................. 9,000,000 9,638,730 Brownsville Utility System Revenue, Refunding and Improvement, Series A, AMBAC Insured, 5.00%, 9/01/31 ............................................................................. 15,500,000 16,042,810 Coppell Special Assessment, Gateway Project, 8.70%, 3/01/12 ................................... 2,515,000 2,535,673 Decatur Hospital Authority Hospital Revenue, Series A, ETM, 5.75%, 9/01/29 .................... 4,810,000 5,369,451 El Paso Health Facilities Development Corp. Revenue, Senior Care Facilities, Bienvivir Senior Health, 7.00%, 8/15/12 .......................................................................... 865,000 924,780 7.50%, 8/15/18 .......................................................................... 2,300,000 2,491,107 7.75%, 8/15/31 .......................................................................... 3,000,000 3,257,700 Georgetown Health Facilities Development Corp. Revenue, Georgetown Healthcare System, Refunding, 6.25%, 8/15/29 .................................................................. 10,975,000 11,136,113 Matagorda County Navigation District No. 1 Revenue, Centerpoint Energy Project, Refunding, 5.60%, 3/01/27 ............................................................................. 11,000,000 11,433,070 Sabine River Authority PCR, Southwestern Electric Power Co., Refunding, MBIA Insured, 6.10%, 4/01/18 ................ 7,000,000 7,201,390 TXU Electric, Refunding, Series C, 5.20%, 5/01/28 ....................................... 15,000,000 15,037,500 TXU Energy Co. LLC Project, Refunding, Series A, 5.80%, 7/01/22 ......................... 1,000,000 1,081,050 TXU Energy Co. LLC Project, Refunding, Series B, 6.15%, 8/01/22 ......................... 3,000,000 3,312,030 Texas State GO, Veterans Housing Assistance, Fund I, Refunding, Series A, 6.15%, 12/01/25 ................................................................................... 7,430,000 7,578,600 -------------- 121,130,062 -------------- U.S. TERRITORIES 2.2% Children's Trust Fund Puerto Rico Tobacco Settlement Revenue, Asset-Backed Bonds, Refunding, 5.50%, 5/15/39 .......................................................................... 11,500,000 11,642,600 5.625%, 5/15/43 ......................................................................... 3,500,000 3,557,470 Northern Mariana Islands Commonwealth Ports Authority Airport Revenue, senior lien, Series A, 6.25%, 3/15/28 ................................................................... 8,720,000 8,991,279
Quarterly Statements of Investments | 73 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) U.S. TERRITORIES (CONT.) Northern Mariana Islands Commonwealth Ports Authority Seaport Revenue, Series A, 6.60%, 3/15/28 .................................................................................... $ 8,165,000 $ 8,751,247 Puerto Rico Commonwealth GO, Public Improvement, Series A, 5.00%, 7/01/34 ..................... 20,000,000 19,819,000 Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Series J, 5.00%, 7/01/34 ................................................................ 11,500,000 11,395,925 Series K, 5.00%, 7/01/35 ................................................................ 18,000,000 17,834,580 Puerto Rico Electric Power Authority Power Revenue, Series NN, 5.125%, 7/01/29 ................ 11,500,000 11,800,610 Virgin Islands PFAR, sub. lien, Fund Loan Notes, Refunding, Series E, 5.75%, 10/01/13 ......................................................................... 15,000,000 15,773,700 5.875%, 10/01/18 ........................................................................ 7,000,000 7,330,750 6.00%, 10/01/22 ......................................................................... 14,500,000 15,173,670 -------------- 132,070,831 -------------- 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 16,460,550 -------------- VIRGINIA 0.9% Fairfax County EDA Transportation Contract Revenue, Route 28 Project, MBIA Insured, 5.00%, 4/01/33 ............................................................................. 5,000,000 5,164,600 Greater Richmond Convention Center Authority Hotel Tax Revenue, Refunding, MBIA Insured, 5.00%, 6/15/30 ............................................................................. 12,255,000 12,696,548 James City County EDA Residential Care Facility Revenue, first mortgage, Williamsburg Landing, Series A, 5.35%, 9/01/26 .......................................................................... 750,000 747,142 5.50%, 9/01/34 .......................................................................... 750,000 746,708 Peninsula Ports Authority Coalition Terminal Revenue, Dominion Terminal Associates, Refunding, 6.00%, 4/01/33 .................................................................. 9,000,000 9,659,610 Tobacco Settlement Financing Corp. Revenue, Asset-Backed, 5.50%, 6/01/26 .......................................................................... 2,500,000 2,523,900 5.625%, 6/01/37 ......................................................................... 3,000,000 3,005,430 Virginia Beach Development Authority Residential Care Facility Mortgage Revenue, Westminster Canterbury Project, Refunding, 5.00%, 11/01/22 .............................................................. 1,000,000 1,003,050 Refunding, 5.25%, 11/01/26 .............................................................. 1,000,000 1,013,990 Refunding, 5.375%, 11/01/32 ............................................................. 1,000,000 1,012,590 Series A, 7.125%, 11/01/23 .............................................................. 5,000,000 5,747,350 Series A, 7.25%, 11/01/32 ............................................................... 9,000,000 10,386,000 -------------- 53,706,918 -------------- WASHINGTON 0.5% Port Seattle Revenue, intermediate lien, Refunding, Series A, MBIA Insured, 5.00%, 3/01/30 .................................................................................... 15,000,000 15,526,350 Spokane GO, Refunding, Series A, FGIC Insured, 5.00%, 12/01/30 ................................ 5,720,000 5,948,056 Washington State GO, Motor Vehicle Fuel Tax, Series C, 5.00%, 6/01/29 ................................................................................. 5,180,000 5,357,985 6/01/30 ................................................................................. 5,370,000 5,546,136 -------------- 32,378,527 --------------
74 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 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 $ 10,323,400 -------------- WISCONSIN 0.6% Central Brown County Water Authority Water System Revenue, Refunding, AMBAC Insured, 5.00%, 12/01/30 ............................................................................ 16,705,000 17,330,101 Green Bay Water System Revenue, Refunding and Improvement, FSA Insured, 5.00%, 11/01/29 ................................................................................... 5,000,000 5,174,150 Kaukauna Environmental Improvement Revenue, International Paper Co. Project, Series A, 6.70%, 5/01/24 ............................................................................. 4,100,000 4,385,155 Wisconsin State Health and Educational Facilities Authority Revenue, Fort Healthcare Inc. Project, 5.75%, 5/01/24 ............................................ 5,000,000 5,226,600 New Castle Place Project, Series A, 7.00%, 12/01/31 ..................................... 2,500,000 2,589,125 -------------- 34,705,131 -------------- WYOMING 0.2% Sweetwater County PCR, Idaho Power Co. Project, Refunding, Series A, 6.05%, 7/15/26 ........... 10,500,000 10,883,250 -------------- TOTAL BONDS (COST $5,233,370,800) ............................................................. 5,363,309,081 -------------- ZERO COUPON/STEP-UP BONDS 7.2% CALIFORNIA 6.3% Foothill/Eastern Corridor Agency Toll Road Revenue, Capital Appreciation, Refunding, 1/15/22 ................................................ 49,115,000 19,265,850 Capital Appreciation, Refunding, 1/15/31 ................................................ 4,000,000 921,880 Capital Appreciation, Refunding, 1/15/34 ................................................ 4,500,000 861,795 Capital Appreciation, Refunding, 1/15/36 ................................................ 4,000,000 678,000 Convertible Capital Appreciation, Refunding, zero cpn. to 7/15/09, 5.85% thereafter, 1/15/23 .............................................................................. 35,000,000 30,147,950 San Francisco City and County RDA Lease Revenue, George R. Moscone Center, 7/01/09 ................................................................................. 3,750,000 3,277,012 7/01/10 ................................................................................. 4,500,000 3,778,290 7/01/12 ................................................................................. 4,500,000 3,448,665 7/01/13 ................................................................................. 4,250,000 3,084,055 7/01/14 ................................................................................. 2,250,000 1,548,068 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 20,567,475 Capital Appreciation, Refunding, Series A, zero cpn. to 1/15/07, 5.65% thereafter, 1/15/17 .............................................................................. 20,000,000 18,240,800 junior lien, ETM, 1/01/06 ............................................................... 9,000,000 8,980,020 junior lien, ETM, 1/01/07 ............................................................... 9,400,000 9,077,768 junior lien, ETM, 1/01/08 ............................................................... 10,400,000 9,710,064 junior lien, ETM, 1/01/09 ............................................................... 21,800,000 19,519,066 junior lien, ETM, 1/01/10 ............................................................... 15,000,000 12,914,550 junior lien, ETM, 1/01/12 ............................................................... 30,100,000 23,779,000 junior lien, ETM, 1/01/24 ............................................................... 52,700,000 22,721,078 junior lien, ETM, 1/01/25 ............................................................... 45,200,000 18,428,492 junior lien, ETM, 1/01/26 ............................................................... 131,900,000 50,606,073 junior lien, ETM, 1/01/27 ............................................................... 139,100,000 50,568,414
Quarterly Statements of Investments | 75 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 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 $ 17,844,400 senior lien, Refunding, Series A, 1/15/24 ............................................... 20,000,000 17,808,000 -------------- 367,776,765 -------------- COLORADO 0.2% E-470 Public Highway Authority Revenue, Capital Appreciation, Series A, MBIA Insured, 9/01/28 ......................................................... 15,000,000 4,901,400 Series B, MBIA Insured, 9/01/29 ......................................................... 10,000,000 2,829,600 Series B, MBIA Insured, 9/01/30 ......................................................... 17,300,000 4,590,036 Series B, MBIA Insured, 9/01/31 ......................................................... 10,000,000 2,487,400 -------------- 14,808,436 -------------- NEW YORK 0.0%(b) MAC for City of Troy Revenue, Capital Appreciation, Series C, MBIA Insured, 7/15/21 ................................................................................. 428,010 213,996 1/15/22 ................................................................................. 649,658 315,688 -------------- 529,684 -------------- 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 6,575,773 7/01/28 ................................................................................. 19,400,000 6,210,910 7/01/29 ................................................................................. 19,365,000 5,854,233 7/01/30 ................................................................................. 19,370,000 5,526,068 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 1,720,550 1/01/26 ................................................................................. 2,610,000 842,847 -------------- 26,730,381 -------------- TEXAS 0.2% Texas State Turnpike Authority Revenue, Capital Appreciation, AMBAC Insured, 8/15/32 .......... 51,000,000 11,420,940 -------------- TOTAL ZERO COUPON/STEP-UP BONDS (COST $316,225,181) ........................................... 421,266,206 -------------- TOTAL LONG TERM INVESTMENTS (COST $5,549,595,981) ............................................. 5,784,575,287 -------------- SHORT TERM INVESTMENTS 0.3% BONDS 0.3% CALIFORNIA 0.1% (d)California State Department of Water Resources Power Supply Revenue, Series B-3, Daily VRDN and Put, 2.94%, 5/01/22 .......................................... 1,100,000 1,100,000 Series C-7, FSA Insured, Weekly VRDN and Put, 3.01%, 5/01/22 ............................ 2,200,000 2,200,000 (d)California State Economic Recovery Revenue, Series C-2, Weekly VRDN and Put, 2.94%, 7/01/23 .................................................................................... 1,510,000 1,510,000 -------------- 4,810,000 --------------
76 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM INVESTMENTS (CONT.) BONDS (CONT.) CONNECTICUT 0.0%(b) (d)Connecticut State Health and Educational Facilities Authority Revenue, Yale University, Series V-1, Daily VRDN and Put, 2.90%, 7/01/36 ............................................. $ 100,000 $ 100,000 -------------- FLORIDA 0.0%(b) (d)Orange County School Board COP, Series B, MBIA Insured, Daily VRDN and Put, 3.00%, 8/01/27 .................................................................................... 200,000 200,000 -------------- NEW YORK 0.1% (d)Long Island Power Authority Electric System Revenue, Sub Series 2, Daily VRDN and Put, 2.97%, 5/01/33 ........................................ 2,400,000 2,400,000 Sub Series 3B, Daily VRDN and Put, 2.94%, 5/01/33 ....................................... 600,000 600,000 (d)New York City GO, Refunding, Series H, Sub Series H-3, Daily VRDN and Put, 2.97%, 8/01/20 ................. 700,000 700,000 Series H, Sub Series H-3, Daily VRDN and Put, 2.97%, 8/01/22 ............................ 1,550,000 1,550,000 (d)New York City IDAR, Liberty, 1 Bryant Park LLC, Series B, Daily VRDN and Put, 3.05%, 11/01/39 ................................................................................... 1,800,000 1,800,000 (d)New York City Municipal Water Finance Authority Water and Sewer System Revenue, Fiscal 2003, Refunding, Sub Series C-3, Daily VRDN and Put, 2.97%, 6/15/18 .............. 1,000,000 1,000,000 Series A, FGIC Insured, Daily VRDN and Put, 2.97%, 6/15/25 .............................. 1,100,000 1,100,000 (d)Port Authority of New York and New Jersey Special Obligation Revenue, Versatile Structure, Series 2, Daily VRDN and Put, 2.94%, 5/01/19 ............................................... 900,000 900,000 -------------- 10,050,000 -------------- TENNESSEE 0.1% (d)Clarksville PBA Revenue, Pooled Financing, Tennessee Municipal Bond Fund, Daily VRDN and Put, 3.03%, 1/01/33 ................................................................................. 1,200,000 1,200,000 7/01/34 ................................................................................. 1,600,000 1,600,000 (d)Montgomery County PBA Pooled Financing Revenue, Tennessee County Loan Pool, Daily VRDN and Put, 3.03%, 7/01/34 ......................................................... 200,000 200,000 -------------- 3,000,000 -------------- TOTAL SHORT TERM INVESTMENTS (COST $18,160,000) ............................................... 18,160,000 -------------- TOTAL INVESTMENTS (COST $5,567,755,981) 99.0% ................................................. 5,802,735,287 OTHER ASSETS, LESS LIABILITIES 1.0% ........................................................... 61,215,936 -------------- NET ASSETS 100.0% ............................................................................. $5,863,951,223 ==============
See Selected Portfolio Abbreviations on page 169. (a) Defaulted securities. (b) Rounds to less than 0.05% of net assets. (c) Security purchased on a when-issued or delayed delivery basis. (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 | 77 See Notes to Statements of Investments. | FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 98.1% BONDS 98.1% ALABAMA 5.7% Alabama Drinking Water Finance Authority Revenue, Revolving Fund Loan, Series A, AMBAC Insured, 5.25%, 8/15/21 .............................................................. $ 2,490,000 $ 2,645,102 Anniston Regional Medical Center Board Revenue, Series A, AMBAC Insured, 5.25%, 6/01/18 .................................................................................... 5,000,000 5,301,000 Bessemer, wts., XLCA Insured, 5.00%, 2/01/35 .................................................. 2,000,000 2,057,660 Bessemer Governmental Utility Services Corp. Water Supply Revenue, MBIA Insured, 5.25%, 6/01/32 .................................................................................... 5,000,000 5,182,350 Birmingham GO, Refunding and Capital Improvement, Series B, AMBAC Insured, 5.00%, 12/01/32 ................................................................................... 5,000,000 5,109,350 Daphne Utilities Board Water Gas and Sewer Revenue, Series B, AMBAC Insured, 5.50%, 6/01/30 .................................................................................... 1,670,000 1,773,239 East Alabama Health Care Authority Health Care Facilities Revenue, Tax Anticipation Bond, Series A, MBIA Insured, 5.25%, 9/01/28 ..................................................... 7,000,000 7,251,930 Helena Utilities Board Water and Sewer Revenue, MBIA Insured, 5.25%, 4/01/27 ................................................................................. 3,260,000 3,448,363 4/01/33 ................................................................................. 4,890,000 5,125,649 Jefferson County Sewer Revenue, Capital Improvement, wts., Series A, FGIC Insured, Pre-Refunded, 5.125%, 2/01/29 ........ 22,050,000 23,308,394 wts., Series D, FGIC Insured, Pre-Refunded, 5.75%, 2/01/22 .............................. 5,000,000 5,187,778 wts., Series D, FGIC Insured, Pre-Refunded, 5.00%, 2/01/32 .............................. 12,690,000 13,709,134 Montgomery Medical Clinic Board Health Care Facilities Revenue, Jackson Hospital and Clinic, Refunding, AMBAC Insured, 6.00%, 3/01/26 ................................................... 4,000,000 4,102,920 Muscle Shoals GO, wts., MBIA Insured, 5.50%, 8/01/30 .......................................... 2,000,000 2,140,000 Orange Beach Water Sewer and Fire Protection Authority Revenue, MBIA Insured, 5.00%, 5/15/35 .................................................................................... 3,665,000 3,779,018 Tuscaloosa, wts., FSA Insured, 5.00%, 1/01/30 ................................................. 8,875,000 9,182,164 University of Alabama General Revenue, Series A, MBIA Insured, 5.00%, 7/01/34 ................. 3,000,000 3,090,540 University of Alabama University Revenues, FGIC Insured, 5.25%, 10/01/27 ...................... 5,975,000 6,257,976 -------------- 108,652,567 -------------- ALASKA 0.7% Alaska Energy Authority Power Revenue, Bradley Lake Project, BIG Insured, 6.25%, 7/01/21 .................................................................................... 5,000 5,013 Alaska Energy Authority Utilities Revenue, Refunding, FSA Insured, 5.20%, 7/01/17 ............. 3,000,000 3,134,850 Alaska Industrial Development and Export Authority Revenue, Revolving Fund, Refunding, Series A, MBIA Insured, 6.125%, 4/01/27 .................................................... 5,000,000 5,246,700 Alaska State HFC Revenue, Refunding, Series A, MBIA Insured, 6.00%, 6/01/27 ....................................... 3,610,000 3,741,945 Series A, MBIA Insured, Pre-Refunded, 5.875%, 12/01/30 .................................. 215,000 219,300 -------------- 12,347,808 -------------- ARIZONA 2.4% Arizona State Municipal Financing Program COP, Series 1986-20, BIG Insured, ETM, 7.70%, 8/01/10 .................................................................................... 6,000,000 6,765,000 Cochise County USD No. 68 GO, Sierra Vista, Refunding, FGIC Insured, 7.50%, 7/01/10 ........... 500,000 582,430 Maricopa County IDA Hospital Facility Revenue, Samaritan Health Services, Refunding, Series A, MBIA Insured, ETM, 7.00%, 12/01/16 ............................................... 300,000 370,134
78 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 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 $ 19,651,860 5.625%, 1/01/29 ......................................................................... 12,655,000 13,756,744 Tucson Water Revenue, Series 1994-A, MBIA Insured, Pre-Refunded, 6.00%, 7/01/21 ............... 5,000,000 5,129,150 -------------- 46,255,318 -------------- ARKANSAS 1.3% Arkansas State Development Finance Authority Water Revenue, Refunding, Series A, MBIA Insured, 6.50%, 7/01/10 ............................................................... 2,000,000 2,145,400 Little Rock School District GO, Refunding, Series B, FSA Insured, 5.50%, 2/01/33 ........................................ 3,970,000 4,206,612 Series C, FSA Insured, 5.25%, 2/01/33 ................................................... 7,790,000 8,092,018 Paragould Water and Electric Revenue, AMBAC Insured, Pre-Refunded, 5.65%, 12/01/25 ................................................................................... 1,000,000 1,097,150 Pulaski Technical College Revenue, Student Tuition and Fee, FGIC Insured, 5.00%, 9/01/34 .................................................................................... 2,190,000 2,243,940 University of Arkansas University Revenues, Pine Bluff Campus, Refunding, Series A, AMBAC Insured, 5.00%, 12/01/35 .................. 3,000,000 3,102,510 Various Facility, Fayetteville Campus, FGIC Insured, 5.00%, 12/01/32 .................... 4,000,000 4,104,280 -------------- 24,991,910 -------------- CALIFORNIA 3.2% California State GO, AMBAC Insured, 5.00%, 2/01/33 ........................................................... 7,000,000 7,210,420 Refunding, AMBAC Insured, 5.00%, 2/01/32 ................................................ 4,750,000 4,871,030 Refunding, MBIA Insured, 5.00%, 2/01/31 ................................................. 20,000,000 20,531,000 Refunding, MBIA Insured, 5.00%, 10/01/32 ................................................ 1,910,000 1,963,193 Corona COP, Corona Community Hospital Project, Pre-Refunded, 9.425%, 9/01/20 .................. 15,000,000 18,581,100 Oakland RDA Tax Allocation, Central District Redevelopment, Refunding, AMBAC Insured, 5.50%, 2/01/14 ............................................................................. 250,000 271,580 San Joaquin Hills Transportation Corridor Agency Toll Road Revenue, Refunding, Series A, MBIA Insured, 5.25%, 1/15/30 ............................................................... 4,000,000 4,148,880 Val Verde USD, COP, School Construction Project, Refunding, Series B, FGIC Insured, 5.00%, 1/01/35 .................................................................................... 2,500,000 2,566,300 -------------- 60,143,503 -------------- COLORADO 3.1% Broomfield COP, AMBAC Insured, 6.00%, 12/01/29 ................................................ 3,000,000 3,264,150 Centennial Water and Sanitation District Water and Sewer Revenue, Refunding, Series A, FSA Insured, 5.125%, 12/01/17 .............................................................. 5,000,000 5,199,500 Colorado Health Facilities Authority Revenue, Community Provider Pooled Loan Program, Series A, FSA Insured, 7.25%, 7/15/17 ...................................................... 27,000 27,135 Colorado Mountain College Residence Hall Authority Revenue, MBIA Insured, Pre-Refunded, 5.625%, 6/01/12 ......................................................................... 1,900,000 1,941,344 5.75%, 6/01/23 .......................................................................... 3,000,000 3,067,080 Colorado Springs Hospital Revenue, MBIA Insured, Pre-Refunded, 6.00%, 12/15/24 ................ 2,455,000 2,506,162 Denver City and County Airport Revenue, Series C, MBIA Insured, ETM, 6.125%, 11/15/25 ........................................... 8,000,000 8,639,179 Series E, MBIA Insured, 5.50%, 11/15/25 ................................................. 5,000,000 5,221,500
Quarterly Statements of Investments | 79 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) COLORADO (CONT.) Dove Valley Metropolitan District Arapahoe County GO, Refunding, FSA Insured, 5.00%, 11/01/35 ................................................................................... $ 8,915,000 $ 9,246,103 E-470 Public Highway Authority Revenue, Refunding, Senior Series A, MBIA Insured, 5.00%, 9/01/21 .................................................................................... 5,000,000 5,156,850 University of Colorado Hospital Authority Revenue, Refunding, Series A, AMBAC Insured, 5.20%, 11/15/17 ......................................................................... 5,425,000 5,706,612 5.25%, 11/15/22 ......................................................................... 7,800,000 8,163,870 -------------- 58,139,485 -------------- CONNECTICUT 0.1% Connecticut State Health and Educational Facilities Authority Revenue, Danbury Hospital, Series E, MBIA Insured, 6.50%, 7/01/14 ................................ 335,000 339,650 Mansfield Nursing Home, AMBAC Insured, 6.00%, 11/01/22 .................................. 2,450,000 2,454,630 -------------- 2,794,280 -------------- DISTRICT OF COLUMBIA 0.0%(a) District of Columbia HFA, RMR, Series 1986-1, FGIC Insured, 7.75%, 9/01/16 .................... 190,000 192,233 -------------- FLORIDA 8.6% Broward County School Board COP, Series A, FSA Insured, 5.00%, 7/01/29 ........................ 5,000,000 5,192,550 Celebration CDD, Special Assessment, Series B, MBIA Insured, 5.50%, 5/01/19 ................... 210,000 217,999 Clearwater Water and Sewer Revenue, FGIC Insured, 5.00%, 12/01/28 ................................................................................ 11,050,000 11,458,629 12/01/32 ................................................................................ 13,665,000 14,095,584 Dade County Seaport Revenue, Refunding, Series E, MBIA Insured, 8.00%, 10/01/08 ............... 200,000 225,118 Florida State Board of Education Capital Outlay GO, Public Education, Refunding, Series E, FGIC Insured, 5.00%, 6/01/24 ....................................... 5,000,000 5,213,600 Series B, FGIC Insured, 5.00%, 6/01/23 .................................................. 5,395,000 5,645,166 Florida State Board of Education GO, Series C, MBIA Insured, 5.00%, 6/01/27 ................... 4,245,000 4,416,965 Greater Orlando Aviation Authority Orlando Airport Facilities Revenue, Series B, FGIC Insured, 5.25%, 10/01/28 ............................................................................ 2,500,000 2,615,675 Hillsborough County IDA, PCR, Tampa Electric Co. Project, Refunding, MBIA Insured, 6.25%, 12/01/34 ................................................................................... 1,000,000 1,030,000 Jacksonville Sales Tax Revenue, AMBAC Insured, 5.00%, 10/01/30 ................................ 5,000,000 5,147,150 Jacksonville Transportation Revenue, MBIA Insured, 5.25%, 10/01/29 ............................ 11,000,000 11,619,520 Lee County IDA Utilities Revenue, Bonita Springs Utilities Project, Refunding, MBIA Insured, 6.05%, 11/01/15 ................................................................................ 1,000,000 1,031,550 11/01/20 ................................................................................ 1,000,000 1,028,020 Lee County Solid Waste System Revenue, MBIA Insured, 5.375%, 10/01/15 ......................... 2,000,000 2,047,680 Manatee County School Board COP, MBIA Insured, Pre-Refunded, 6.125%, 7/01/21 .................. 5,000,000 5,181,800 Opa-Locka Capital Improvement Revenue, FGIC Insured, 6.125%, 1/01/24 .......................... 1,000,000 1,002,450 Orange County School Board COP, Series A, MBIA Insured, 5.00%, 8/01/27 ........................ 10,000,000 10,336,500 Orange County Tourist Development Tax Revenue, AMBAC Insured, 5.25%, 10/01/27 ......................................................................... 10,000,000 10,571,400 Pre-Refunded, 5.50%, 10/01/31 ........................................................... 1,000,000 1,075,370
80 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) FLORIDA (CONT.) Orlando and Orange County Expressway Authority Expressway Revenue, junior lien, FGIC Insured, 6.50%, 7/01/10 ............................................... $ 100,000 $ 112,616 junior lien, FGIC Insured, 6.50%, 7/01/12 ............................................... 225,000 261,450 Series B, AMBAC Insured, 5.00%, 7/01/35 ................................................. 20,000,000 20,648,000 Osceola County School Board COP, Series A, AMBAC Insured, 5.25%, 6/01/27 ...................... 13,000,000 13,817,700 Pasco County Guaranteed Entitlement Revenue, Refunding, FSA Insured, 5.00%, 12/01/33 ................................................................................... 2,185,000 2,260,579 Pinellas County Health Facilities Authority Revenue, Baycare Health System, FSA Insured, 5.00%, 11/15/30 ............................................................................ 4,000,000 4,099,000 Polk County School Board COP, Series A, FSA Insured, 5.00%, 1/01/24 ........................... 5,000,000 5,197,650 Port St. Lucie Utility Revenue, MBIA Insured, 5.00%, 9/01/34 .................................. 8,420,000 8,720,847 Sumter County School District Revenue, Multi-District Loan Program, FSA Insured, 7.15%, 11/01/15 ................................................................................... 245,000 308,514 Sunrise Utilities System Revenue, Refunding, AMBAC Insured, 5.20%, 10/01/22 ................... 2,000,000 2,198,060 Tampa Bay Water Utility System Revenue, FGIC Insured, Pre-Refunded, 5.75%, 10/01/29 ................................................................................... 2,000,000 2,229,500 Volusia County Educational Facility Authority Revenue, Embry Riddle Aeronautical University, Refunding, Series B, AMBAC Insured, 5.25%, 10/15/19 ........................................ 3,500,000 3,730,265 -------------- 162,736,907 -------------- GEORGIA 6.6% Athens Housing Authority Student Housing Lease Revenue, University of Georgia, East Campus, Refunding, AMBAC Insured, 5.00%, 12/01/33 ..................................... 6,000,000 6,167,280 Atlanta Airport Revenue, General, Series A, FGIC Insured, Pre-Refunded, 5.50%, 1/01/26 .................................................................................... 13,750,000 14,937,037 Atlanta GO, Refunding, FGIC Insured, 5.00%, 12/01/20 .......................................... 3,775,000 3,911,542 Atlanta Water and Wastewater Revenue, Series A, FGIC Insured, 5.00%, 11/01/29 ......................................................................... 4,750,000 4,928,838 Pre-Refunded, 5.00%, 11/01/29 ........................................................... 5,250,000 5,573,348 Brunswick Water and Sewer Revenue, Refunding and Improvement, MBIA Insured, 6.10%, 10/01/14 ................................................................................... 1,535,000 1,763,899 Cherokee County Water and Sewage Authority Revenue, FGIC Insured, 5.00%, 8/01/27 ............................................................ 1,500,000 1,560,630 MBIA Insured, 6.90%, 8/01/18 ............................................................ 15,000 15,087 Columbus Building Authority Lease Revenue, Series A, FGIC Insured, 5.00%, 1/01/31 ............. 3,500,000 3,631,705 Fulton County Development Authority Revenue, Georgia Tech Athletic Assn., Refunding, AMBAC Insured, 5.125%, 10/01/32 ............................................................ 9,000,000 9,295,920 Georgia Medical Center Hospital Authority Revenue, Anticipation Certificates, Columbus Regional Healthcare Systems, MBIA Insured, 5.50%, 8/01/19 .................................. 15,000,000 16,038,150 Henry County Water and Sewer Authority Revenue, FGIC Insured, Pre-Refunded, 5.625%, 2/01/30 .................................................................................... 3,500,000 3,823,960 Metropolitan Atlanta Rapid Transit Authority Sales Tax Revenue, Second Indenture Series, MBIA Insured, 5.00%, 7/01/27 ................................................................................. 13,470,000 13,931,347 7/01/28 ................................................................................. 14,175,000 14,643,200 7/01/32 ................................................................................. 8,575,000 8,821,531
Quarterly Statements of Investments | 81 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) GEORGIA (CONT.) Rockdale County Water and Sewer Authority Revenue, Refunding, Series A, MBIA Insured, Pre-Refunded, 5.375%, 7/01/29 .............................................................. $ 6,350,000 $ 6,868,287 South Fulton Municipal Regional Water and Sewer Authority Water Revenue, MBIA Insured, 5.00%, 1/01/33 ............................................................................. 8,000,000 8,225,120 -------------- 124,136,881 -------------- HAWAII 0.7% Hawaii County GO, Refunding and Improvement, Series A, FGIC Insured, 5.60%, 5/01/12 ................................................................................. 1,000,000 1,106,840 5/01/13 ................................................................................. 1,000,000 1,115,880 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 2,056,940 Honolulu City and County GO, Series C, FGIC Insured, 5.00%, 7/01/20 ........................... 6,250,000 6,554,937 Kauai County GO, Series A, FGIC Insured, Pre-Refunded, 6.125%, 8/01/23 ........................ 1,755,000 1,952,824 -------------- 12,787,421 -------------- ILLINOIS 0.7% Chicago Board of Education GO, Chicago School Reform, Series A, AMBAC Insured, 5.25%, 12/01/30 ................................................................................... 2,000,000 2,091,380 Chicago Board of Education Lease COP, Refunding, Series A, MBIA Insured, 6.25%, 1/01/09 .................................................................................... 320,000 346,090 Illinois Health Facilities Authority Revenue, Northwestern Medical Facility Foundation, Refunding, MBIA Insured, 5.125%, 11/15/28 ............................................................................. 5,000,000 5,143,200 Series 1990, FSA Insured, ETM, 7.75%, 8/15/10 ........................................... 50,000 59,169 Macon County and Decatur COP, Decatur Public Building Commission, FGIC Insured, 6.50%, 1/01/06 .................................................................................... 300,000 300,693 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 4,344,652 Regional Transportation Authority Revenue, Series A, AMBAC Insured, 7.20%, 11/01/20 ........... 300,000 374,265 -------------- 12,659,449 -------------- KANSAS 0.1% Cowley and Shawnee Counties SFMR, GNMA Secured, 7.35%, 12/01/11 ............................... 105,000 105,784 Kansas State Development Finance Authority Health Facilities Revenue, Stormont Vail Healthcare Inc., Refunding, Series G, MBIA Insured, 5.80%, 11/15/21 ...................................... 5,000 5,106 Series G, MBIA Insured, Pre-Refunded, 5.80%, 11/15/21 ................................... 1,325,000 1,357,396 -------------- 1,468,286 -------------- KENTUCKY 1.9% Jefferson County Capital Projects Corp. Revenue, Lease, MBIA Insured, 5.375%, 6/01/22 ......................................................................... 2,000,000 2,091,620 5.50%, 6/01/28 .......................................................................... 750,000 785,708 Kentucky Economic Development Finance Authority Health System Revenue, Norton Healthcare Inc., Refunding, Series C, MBIA Insured, 6.15%, 10/01/26 ...................................... 12,195,000 13,836,325 Series C, MBIA Insured, 6.05%, 10/01/20 ................................................. 12,760,000 14,447,765
82 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) KENTUCKY (CONT.) Louisville and Jefferson County Metropolitan Sewer District Sewer and Drain System Revenue, Series A, MBIA Insured, 5.50%, 5/15/34 ..................................................... $ 5,000,000 $ 5,361,350 -------------- 36,522,768 -------------- LOUISIANA 0.8% Louisiana Local Government Environmental Facilities CDA Revenue, Parking Facilities Corp. Garage Project, Series A, AMBAC Insured, 5.375%, 10/01/31 .................................. 5,485,000 5,750,968 Louisiana State Gas and Fuels Tax Revenue, Series A, AMBAC Insured, 5.00%, 6/01/27 ............ 10,000,000 10,210,900 -------------- 15,961,868 -------------- MAINE 0.0%(a) Maine State Health and Higher Educational Facilities Authority Revenue, Series C, FSA Insured, 6.20%, 7/01/25 ................................................................ 100,000 102,247 -------------- MARYLAND 1.7% Baltimore Project Revenue, Wastewater Projects, Refunding, FGIC Insured, 5.125%, 7/01/42 ................................................ 11,000,000 11,386,980 Series B, MBIA Insured, 5.00%, 7/01/30 .................................................. 8,500,000 8,887,855 Series B, MBIA Insured, 5.00%, 7/01/35 .................................................. 5,000,000 5,204,400 Baltimore Revenue, Wastewater Project, Series A, FSA Insured, Pre-Refunded, 5.75%, 7/01/30 .................................................................................... 5,880,000 6,439,541 Maryland State Health and Higher Educational Facilities Authority Revenue, University of Maryland Medical System, Series B, FGIC Insured, 7.00%, 7/01/22 ............................ 200,000 258,174 -------------- 32,176,950 -------------- MASSACHUSETTS 4.4% Central Berkshire Religious School District GO, Series B, FSA Insured, 5.125%, 3/01/18 ........ 1,125,000 1,174,883 Massachusetts State Development Finance Agency Revenue, Boston University, Series T-1, AMBAC Insured, 5.00%, 10/01/35 ............................................................. 7,000,000 7,202,090 Massachusetts State GO, Consolidated Loan, Series D, MBIA Insured, ETM, 5.00%, 8/01/27 ..................................................................... 3,535,000 3,786,515 Pre-Refunded, 5.00%, 8/01/27 ............................................................ 855,000 923,665 Massachusetts State Health and Educational Facilities Authority Revenue, Bay State Medical Center, Series E, FSA Insured, Pre-Refunded, 6.00%, 7/01/26 ........... 10,000,000 10,356,500 Caregroup Issue, Series A, MBIA Insured, 5.00%, 7/01/25 ................................. 4,250,000 4,402,490 Caregroup Issue, Series A, MBIA Insured, Pre-Refunded, 5.00%, 7/01/25 ................... 750,000 815,363 Central New England Health, Series B, AMBAC Insured, 5.20%, 8/01/28 ..................... 4,415,000 4,565,463 Central New England Health, Series B, AMBAC Insured, Pre-Refunded, 5.20%, 8/01/28 .............................................................................. 585,000 622,393 Harvard Pilgrim Health, Series A, FSA Insured, 5.00%, 7/01/18 ........................... 3,000,000 3,115,320 Partners Healthcare System, Series A, MBIA Insured, 5.375%, 7/01/24 ..................... 9,700,000 10,038,724 Simmons College, Series C, MBIA Insured, 5.125%, 10/01/28 ............................... 8,000,000 8,272,160 Massachusetts State Industrial Finance Agency Revenue, Suffolk University, AMBAC Insured, Pre-Refunded, 5.25%, 7/01/17 ............................................................... 3,000,000 3,149,610 Massachusetts State Port Authority Revenue, Special Facilities, Bosfuel Project, MBIA Insured, 5.625%, 7/01/20 ................................................................................. 1,590,000 1,648,417 7/01/21 ................................................................................. 1,560,000 1,616,113 7/01/23 ................................................................................. 2,155,000 2,227,645 7/01/24 ................................................................................. 2,910,000 3,003,236
Quarterly Statements of Investments | 83 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MASSACHUSETTS (CONT.) Massachusetts State Turnpike Authority Metropolitan Highway System Revenue, sub. lien, Refunding, Series B, MBIA Insured, 5.125%, 1/01/37 ......................................... $ 2,100,000 $ 2,141,412 Massachusetts State Water Resource Authority Revenue, Refunding, Series J, FSA Insured, 5.00%, 8/01/32 ............................................................................. 13,500,000 13,836,825 -------------- 82,898,824 -------------- MICHIGAN 11.0% Allen Park Public School District GO, School Building and Site, MBIA Insured, 5.00%, 5/01/33 .................................................................................... 8,430,000 8,687,284 Birmingham City School District GO, School Building and Site, FSA Insured, 5.00%, 11/01/33 ................................................................................... 8,135,000 8,424,362 Central Michigan University Revenue, Series A, AMBAC Insured, 5.05%, 10/01/32 ................. 8,650,000 8,948,684 Chippewa Valley Schools GO, AMBAC Insured, Pre-Refunded, 5.00%, 5/01/27 ....................... 1,000,000 1,039,910 Detroit City School District GO, Series A, FSA Insured, Pre-Refunded, 5.125%, 5/01/31 ......... 6,500,000 7,043,010 Detroit Public Improvements GO, Series A-1, MBIA Insured, 5.00%, 4/01/21 ...................... 12,390,000 12,877,051 Detroit Sewage Disposal Revenue, senior lien, Refunding, Series A, FGIC Insured, 5.125%, 7/01/31 ........................................................... 6,000,000 6,209,700 FSA Insured, 5.00%, 7/01/32 ............................................................. 10,000,000 10,304,600 Detroit Water Supply System Revenue, senior lien, Series A, FGIC Insured, 5.25%, 7/01/33 ............................................................ 9,815,000 10,277,286 FGIC Insured, Pre-Refunded, 5.25%, 7/01/33 .............................................. 10,185,000 11,026,383 MBIA Insured, 5.00%, 7/01/34 ............................................................ 10,150,000 10,459,169 Ecorse Public School District GO, FGIC Insured, Pre-Refunded, 5.50%, 5/01/27 .................. 7,250,000 7,681,013 Grand Rapids Sanitation Sewer System Revenue, FGIC Insured, 5.00%, 1/01/34 .................... 10,000,000 10,344,800 Jackson County Hospital Finance Authority Revenue, W.A. Foote Memorial Hospital, Series A, AMBAC Insured, 5.25%, 6/01/17 .............................................................. 500,000 517,045 Jonesville Community Schools GO, Refunding, MBIA Insured, 5.00%, 5/01/29 ...................... 3,050,000 3,175,264 Kalamazoo Hospital Finance Authority Hospital Facility Revenue, Bronson Methodist Hospital, Refunding and Improvement, MBIA Insured, 5.875%, 5/15/26 ................................... 5,500,000 5,676,440 Marquette City Hospital Finance Authority Revenue, Marquette General Hospital, Series D, FSA Insured, Pre-Refunded, 6.10%, 4/01/19 .................................................. 5,000,000 5,147,150 Michigan Municipal Bond Authority Revenue, Clean Water Revolving, MBIA Insured, 5.00%, 10/01/23 ................................................................................... 5,095,000 5,274,038 Michigan State Hospital Finance Authority Revenue, Hospital Botsford Obligation, Refunding, Series A, MBIA Insured, 5.25%, 2/15/22 ......... 2,000,000 2,081,260 Oakwood Obligation Group, Refunding, Series A, FSA Insured, 5.00%, 8/15/31 .............. 10,000,000 10,107,600 Refunding, MBIA Insured, 5.00%, 11/15/36 ................................................ 13,000,000 13,374,270 St. John's Hospital, Refunding, Series A, AMBAC Insured, ETM, 6.00%, 5/15/13 ............ 2,500,000 2,650,800 Michigan State Strategic Fund Ltd. Obligation Revenue, Collateral, The Detroit Edison Co., Fund, Pollution, Refunding, Series BB, AMBAC Insured, 7.00%, 5/01/21 ....................... 250,000 321,830 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 10,386,400 Michigan State Trunk Line Revenue, Series A, FSA Insured, Pre-Refunded, 5.25%, 11/01/30 ................................................................................... 20,000,000 21,630,400 Royal Oak Hospital Finance Authority Revenue, William Beaumont Hospital, Series M, MBIA Insured, 5.25%, 11/15/31 .............................................................. 4,000,000 4,146,400 Saginaw Valley State University Revenue, Refunding, AMBAC Insured, 5.30%, 7/01/28 ............. 3,400,000 3,589,788
84 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MICHIGAN (CONT.) Yale Public Schools District GO, FSA Insured, Pre-Refunded, 5.375%, 5/01/27 ................... $ 3,845,000 $ 3,958,927 Zeeland Public Schools GO, Refunding, MBIA Insured, 5.25%, 5/01/24 ............................ 3,180,000 3,253,363 -------------- 208,614,227 -------------- MINNESOTA 4.9% Eden Prairie MFHR, Olympic Ridge, Refunding, Series A, GNMA Secured, 6.25%, 1/20/31 .................................................................................... 2,000,000 2,042,560 Medford ISD No. 763 GO, Series A, FSA Insured, 5.125%, 2/01/26 ................................ 2,475,000 2,582,341 Minneapolis and St. Paul Metropolitan Airports Commission Airport Revenue, Refunding, Sub Series A, AMBAC Insured, 5.00%, 1/01/35 .................................. 18,700,000 19,123,742 Series C, FGIC Insured, 5.25%, 1/01/26 .................................................. 8,000,000 8,420,960 Series C, FGIC Insured, 5.25%, 1/01/32 .................................................. 4,500,000 4,690,710 Minneapolis Special School District No. 001 COP, Refunding, Series B, FGIC Insured, 4.625%, 2/01/17 ............................................................................ 1,635,000 1,676,742 Minnesota Agriculture and Economic Development Board Revenue, Health Care System, Refunding, Series A, MBIA Insured, 5.75%, 11/15/26 ...................................... 180,000 190,699 Series A, MBIA Insured, Pre-Refunded, 5.75%, 11/15/26 ................................... 12,100,000 12,899,689 Minnesota State HFAR, Rental Housing, Refunding, Series D, MBIA Insured, 6.00%, 2/01/22 .................................................................................... 210,000 211,441 Robbinsdale ISD No. 281 GO, MBIA Insured, 5.00%, 2/01/22 ...................................... 7,340,000 7,668,098 Sauk Rapids ISD No. 47 GO, Series A, MBIA Insured, 5.75%, 2/01/26 ............................. 11,850,000 12,887,349 South Washington County ISD No. 833 GO, Series B, FSA Insured, 5.00%, 2/01/22 ................................................................................. 10,970,000 11,453,228 2/01/23 ................................................................................. 6,000,000 6,254,340 Woodbury COP, Series A, AMBAC Insured, 5.35%, 2/01/21 ......................................... 2,915,000 3,097,391 -------------- 93,199,290 -------------- MISSISSIPPI 0.0%(a) Harrison County Wastewater Management District Revenue, Wastewater Treatment Facilities, Refunding, Series A, FGIC Insured, 8.50%, 2/01/13 .......................................... 200,000 257,380 -------------- 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 2,050,760 St. Louis School District GO, FGIC Insured, Pre-Refunded, 6.00%, 4/01/12 ...................... 1,330,000 1,341,651 -------------- 3,392,411 -------------- MONTANA 0.5% Montana State Board of Workers Compensation Investment Program Revenue, MBIA Insured, ETM, 6.875%, 6/01/20 ....................................................................... 8,500,000 9,201,250 -------------- 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 3,051,650 Nebraska Educational Finance Authority Revenue, Creighton University Project, AMBAC Insured, 5.95%, 1/01/11 .............................................................. 1,000,000 1,011,870 -------------- 4,063,520 --------------
Quarterly Statements of Investments | 85 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) NEVADA 0.9% Carson City Hospital Revenue, Series B, AMBAC Insured, Pre-Refunded, 5.40%, 3/01/17 .................................................................................... $ 1,000,000 $ 1,035,460 Clark County GO, Series A, AMBAC Insured, 6.50%, 6/01/17 ...................................... 250,000 300,965 Clark County School District GO, Series A, MBIA Insured, 7.00%, 6/01/10 ....................... 4,000,000 4,557,280 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 5,377,700 Truckee Meadows Water Authority Revenue, Series A, FSA Insured, 5.125%, 7/01/30 ............... 5,000,000 5,179,750 -------------- 16,451,155 -------------- NEW JERSEY 2.0% Essex County Improvement Authority Revenue, Garden State Cancer Center Project, AMBAC Insured, 6.00%, 12/01/20 ............................................................. 2,525,000 2,582,318 Middlesex County COP, MBIA Insured, 5.30%, 6/15/29 ............................................ 3,575,000 3,748,566 New Brunswick Parking Authority Revenue, Guaranteed Parking, Series A, MBIA Insured, 5.00%, 9/01/34 ............................................................................. 1,500,000 1,545,720 New Jersey EDA Revenue, Motor Vehicle Surcharge Revenue, Series A, MBIA Insured, 5.00%, 7/01/29 ................. 3,450,000 3,601,386 Motor Vehicle Surcharge Revenue, Series A, MBIA Insured, 5.00%, 7/01/34 ................. 21,250,000 21,967,612 Municipal Rehabilitation, Series A, AMBAC Insured, 5.00%, 4/01/28 ....................... 4,000,000 4,168,960 New Jersey State Turnpike Authority Turnpike Revenue, 2005, Refunding, Series C, AMBAC Insured, 6.50%, 1/01/16 ................................ 50,000 58,441 2005, Series C, AMBAC Insured, ETM, 6.50%, 1/01/16 ...................................... 20,000 23,453 Series C, AMBAC Insured, Pre-Refunded, 6.50%, 1/01/16 ................................... 230,000 269,680 -------------- 37,966,136 -------------- NEW YORK 6.7% Central Square GO, Central School District, FGIC Insured, ETM, 6.50%, 6/15/10 ................. 900,000 1,014,948 Dutchess County IDA Civic Facility Revenue, Bard College Project, AMBAC Insured, 5.375%, 6/01/27 .................................................................................... 3,945,000 4,128,679 MTA Revenue, Series B, MBIA Insured, 5.00%, 11/15/28 .......................................... 20,000,000 20,688,200 MTA Service Contract Revenue, Series B, MBIA Insured, 5.00%, 1/01/31 .......................... 7,000,000 7,192,990 Nassau Health Care Corp. Health System Revenue, Nassau County Guaranteed, FSA Insured, Pre-Refunded, 5.75%, 8/01/29 ............................................................... 5,000,000 5,492,500 New York City Municipal Water Finance Authority Water and Sewer System Revenue, Refunding, Series B, FGIC Insured, Pre-Refunded, 5.25%, 6/15/29 ......................... 10,405,000 10,824,321 Series B, AMBAC Insured, Pre-Refunded, 5.25%, 6/15/29 ................................... 5,000,000 5,201,500 New York City Transitional Finance Authority Revenue, Future Tax Secured, Refunding, Series B, MBIA Insured, 5.00%, 8/01/32 ....................................... 2,230,000 2,301,405 Series A, FGIC Insured, 5.125%, 8/01/33 ................................................. 14,590,000 15,231,814 New York City Trust Cultural Resources Revenue, New York Botanical Garden, MBIA Insured, 5.80%, 7/01/26 ............................................................................. 2,000,000 2,047,340 New York State Dormitory Authority Revenues, Mental Health Services Facilities Improvement, Series B, MBIA Insured, 5.25%, 8/15/31 .............................................................................. 6,310,000 6,583,602 Mental Health Services Facilities Improvement, Series B, MBIA Insured, Pre-Refunded, 5.25%, 8/15/31 ....................................................................... 8,690,000 9,452,572 Pace University, MBIA Insured, Pre-Refunded, 5.70%, 7/01/22 ............................. 7,500,000 7,931,325 Pace University, MBIA Insured, Pre-Refunded, 5.75%, 7/01/26 ............................. 2,500,000 2,645,675
86 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) NEW YORK (CONT.) New York State Dormitory Authority Revenues, (cont.) St. John's University, MBIA Insured, Pre-Refunded, 5.70%, 7/01/26 ....................... $ 15,000,000 $ 15,509,550 Vassar Brothers Hospital, FSA Insured, 5.375%, 7/01/25 .................................. 4,000,000 4,172,120 Triborough Bridge and Tunnel Authority Revenues, Refunding, MBIA Insured, 5.00%, 11/15/32 ................................................................................... 5,000,000 5,162,600 Upper Mohawk Valley Regional Water Finance Authority Water Systems Revenue, Refunding, Series A, FSA Insured, 5.125%, 10/01/26 .................................................... 1,495,000 1,544,230 -------------- 127,125,371 -------------- NORTH CAROLINA 0.8% Asheville Water System Revenue, FGIC Insured, Pre-Refunded, 5.70%, 8/01/25 .................... 1,000,000 1,035,960 North Carolina Medical Care Commission Hospital Revenue, Rex Healthcare Project, AMBAC Insured, 5.00%, 6/01/17 .............................................................. 5,000,000 5,174,650 North Carolina Municipal Power Agency No. 1 Catawba Electric Revenue, MBIA Insured, ETM, 6.50%, 1/01/10 ........................................................................ 20,000 22,306 Raleigh Durham Airport Authority Airport Revenue, Series A, FGIC Insured, 5.00%, 11/01/25 ................................................................................ 5,000,000 5,171,300 11/01/31 ................................................................................ 4,000,000 4,112,320 -------------- 15,516,536 -------------- 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 5,648,936 -------------- OHIO 7.1% Akron Income Tax Revenue, Community Learning Centers, Series A, FGIC Insured, 5.00%, 12/01/33 ................................................................................... 5,000,000 5,159,400 Cleveland Airport System Revenue, Series A, FSA Insured, 5.125%, 1/01/27 ......................................................................... 4,000,000 4,057,760 5.00%, 1/01/31 .......................................................................... 15,405,000 15,757,312 Cleveland Waterworks Revenue, 2005, Refunding and Improvement, Series I, FSA Insured, 5.00%, 1/01/23 .................. 1,460,000 1,508,063 2005, Refunding and Improvement, Series I, FSA Insured, Pre-Refunded, 5.00%, 1/01/23 .............................................................................. 120,000 125,270 Series I, FSA Insured, Pre-Refunded, 5.00%, 1/01/23 ..................................... 1,170,000 1,221,387 Columbus City School District GO, School Facilities Construction and Improvement, FGIC Insured, 5.00%, 12/01/28 ................................................................................ 8,000,000 8,267,280 12/01/31 ................................................................................ 10,295,000 10,632,367 Elyria GO, FGIC Insured, Pre-Refunded, 5.40%, 12/01/17 ........................................ 2,400,000 2,499,072 Fairview Park City School District GO, School Improvement, MBIA Insured, 5.00%, 12/01/29 ................................................................................ 1,460,000 1,519,305 12/01/33 ................................................................................ 2,000,000 2,073,400 Hamilton County Sales Tax Revenue, Hamilton County Football, Project B, MBIA Insured, 5.00%, 12/01/27 ............................................................................ 3,250,000 3,354,845 Hamilton Wastewater System Revenue, Series A, FSA Insured, Pre-Refunded, 5.15%, 10/15/17 ................................................................................... 3,015,000 3,195,116 Jefferson Area Local School District GO, School Facilities Construction and Improvement, FGIC Insured, 5.00%, 12/01/31 .............................................................. 4,085,000 4,241,333
Quarterly Statements of Investments | 87 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) OHIO (CONT.) Licking Heights Local School District GO, School Facilities Construction and Improvement, Series A, FGIC Insured, Pre-Refunded, 5.625%, 12/01/28 ..................................... $ 3,465,000 $ 3,797,709 Lucas County Hospital Revenue, Promedica Healthcare Obligation Group, Refunding, AMBAC Insured, 5.375%, 11/15/29 ............................................................ 5,000,000 5,274,300 Maumee City School District GO, School Facilities Construction and Improvement, FSA Insured, 5.00%, 12/01/27 ............................................................... 3,250,000 3,371,258 Medina City School District GO, FGIC Insured, Pre-Refunded, 5.25%, 12/01/28 ................... 7,500,000 8,007,675 Ohio State GO, Common Schools, FSA Insured, 5.00%, 9/15/21 .................................... 3,230,000 3,391,565 Ohio State Turnpike Commission Turnpike Revenue, Series A, MBIA Insured, Pre-Refunded, 5.50%, 2/15/26 ............................................................................. 12,000,000 12,294,240 Olentangy Local School District GO, School Facilities Construction and Improvement, Series A, FGIC Insured, 5.25%, 12/01/32 .................................................... 11,450,000 12,099,902 Reynoldsburg City School District GO, School Facilities Construction and Improvement, FSA Insured, 5.00%, 12/01/31 ............................................................... 4,000,000 4,137,520 Springfield City School District GO, FGIC Insured, 5.20%, 12/01/23 ............................ 3,860,000 4,125,066 Streetsboro City School District GO, School Improvement, MBIA Insured, 5.125%, 12/01/21 ................................................................................... 3,700,000 3,887,553 Toledo City School District GO, School Facilities Improvement, Series B, FGIC Insured, 5.00%, 12/01/32 ............................................................................ 4,000,000 4,135,680 University of Cincinnati COP, University Center Project, MBIA Insured, Pre-Refunded, 5.125%, 6/01/24 .................................................................................... 2,950,000 3,031,922 West Holmes Local School District GO, MBIA Insured, Pre-Refunded, 5.375%, 12/01/17 ............ 3,100,000 3,226,821 -------------- 134,393,121 -------------- OKLAHOMA 0.1% McGee Creek Authority Water Revenue, MBIA Insured, 6.00%, 1/01/23 ............................. 300,000 353,487 Okmulgee County Governmental Building Authority Sales Tax Revenue, first mortgage, MBIA Insured, 6.20%, 3/01/20 ............................................................... 1,625,000 1,747,200 -------------- 2,100,687 -------------- OREGON 1.7% Chemeketa Community College District GO, FGIC Insured, Pre-Refunded, 5.95%, 6/01/16 .................................................................................... 3,000,000 3,040,410 Clackamas Community College District Revenue, MBIA Insured, Pre-Refunded, 5.80%, 6/01/26 .................................................................................... 2,500,000 2,531,875 Josephine County School District No. 7 GO, FGIC Insured, 5.70%, 6/01/13 ....................... 5,000,000 5,180,300 Northern Wasco County Peoples Utilities District Electric Revenue, FGIC Insured, Pre-Refunded, 5.625%, 12/01/22 ............................................................. 1,000,000 1,010,000 Ontario Catholic Health Revenue, Holy Rosary Medical Center, MBIA Insured, 5.50%, 11/15/12 ................................................................................... 700,000 715,624 Oregon Health Sciences University Revenue, Series A, MBIA Insured, 5.00%, 7/01/32 .................................................. 8,000,000 8,264,240 Series B, MBIA Insured, 5.25%, 7/01/15 .................................................. 1,500,000 1,546,020 Oregon State Department of Administrative Services COP, Series A, AMBAC Insured, Pre-Refunded, 5.80%, 5/01/24 ............................................. 5,000,000 5,224,950 MBIA Insured, Pre-Refunded, 5.70%, 5/01/17 .............................................. 1,000,000 1,020,430
88 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) OREGON (CONT.) Port of Portland International Airport Revenue, Portland International Airport, Series 11, FGIC Insured, 5.625%, 7/01/26 .............................................................. $ 1,000,000 $ 1,029,540 Washington County Unified Sewer Agency Revenue, senior lien, FGIC Insured, Pre-Refunded, 5.50%, 10/01/16 ............................................................................ 1,845,000 1,897,804 -------------- 31,461,193 -------------- PENNSYLVANIA 1.7% Allegheny County Hospital Development Authority Revenue, Health System, Series A, MBIA Insured, 6.50%, 11/15/30 .............................................................. 10,000,000 11,391,900 Beaver County GO, Series A, MBIA Insured, Pre-Refunded, 5.90%, 10/01/26 ....................... 2,000,000 2,044,200 Pennsylvania Convention Center Authority Revenue, Series A, FGIC Insured, ETM, 6.00%, 9/01/19 .................................................................................... 500,000 586,630 Philadelphia Gas Works Revenue, 1998 General Ordinance, Fourth Series, FSA Insured, 5.00%, 8/01/32 ............................................................................. 4,000,000 4,107,200 Philadelphia Water and Wastewater Revenue, Series A, FGIC Insured, 5.25%, 11/01/24 ............ 2,000,000 2,118,520 Pittsburgh and Allegheny County Public Auditorium Revenue, Regional Asset District Sales Tax, AMBAC Insured, 5.25%, 2/01/31 ......................................................... 6,000,000 6,314,760 Pittsburgh Water and Sewer Authority Revenue, Refunding, FGIC Insured, ETM, 7.25%, 9/01/14 .................................................................................... 90,000 103,739 State Public School Building Authority School Revenue, Philadelphia School District Project, FSA Insured, 5.00%, 6/01/33 ................................................................ 5,000,000 5,144,600 -------------- 31,811,549 -------------- RHODE ISLAND 0.7% Providence GO, Series A, FSA Insured, Pre-Refunded, 5.70%, 7/15/19 ............................ 3,000,000 3,144,270 Rhode Island Clean Water Financing Agency Revenue, Cranston Wastewater Treatment System, MBIA Insured, 5.80%, 9/01/22 ....................................................... 7,785,000 8,199,396 Rhode Island State Health and Educational Building Corp. Revenue, Hospital Financing, Lifespan Obligation Group, MBIA Insured, 5.75%, 5/15/23 .................................... 1,750,000 1,835,190 -------------- 13,178,856 -------------- SOUTH CAROLINA 0.5% Piedmont Municipal Power Agency Electric Revenue, Refunding, FGIC Insured, 6.25%, 1/01/21 .................................................................................... 200,000 243,174 Richland County Hospital Facilities Revenue, Community Provider, Pooled Loan Program, Series A, FSA Insured, ETM, 7.125%, 7/01/17 ................................................ 3,000,000 3,528,510 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 5,254,000 Spartanburg Sanitation Sewer District Sewer System Revenue, MBIA Insured, Pre-Refunded, 5.50%, 6/01/27 ............................................................................. 500,000 521,360 -------------- 9,547,044 -------------- SOUTH DAKOTA 0.7% Brookings COP, AMBAC Insured, 5.10%, 12/01/18 ................................................. 5,000,000 5,207,450 Grant County PCR, Refunding, MBIA Insured, 5.90%, 6/01/23 ..................................... 4,800,000 4,807,104 South Dakota Lease Revenue, Series A, FSA Insured, 6.75%, 12/15/16 ............................ 2,720,000 3,168,718 -------------- 13,183,272 --------------
Quarterly Statements of Investments | 89 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) 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 $ 8,809,315 Series 2000 A, MBIA Insured, Pre-Refunded, 5.125%, 7/01/25 .............................. 2,780,000 2,903,960 -------------- 11,713,275 -------------- TEXAS 9.7% Austin Hotel Occupancy Tax Revenue, sub. lien, AMBAC Insured, Pre-Refunded, 5.625%, 11/15/21 ........................................................................ 2,355,000 2,544,130 5.80%, 11/15/29 ......................................................................... 13,750,000 14,942,400 Austin Water and Wastewater System Revenue, Refunding, Series B, FSA Insured, 5.125%, 5/15/27 ......................................................................... 11,125,000 11,489,678 5.25%, 5/15/31 .......................................................................... 5,000,000 5,179,150 Bell County Health Facilities Development Corporate Revenue, Hospital, Cook Children's Medical Center, Refunding, FSA Insured, 5.30%, 12/01/23 .................................... 5,000,000 5,293,500 Coastal Bend Health Facilities Development Corp. Revenue, Series B, AMBAC Insured, ETM, 6.30%, 1/01/17 ............................................................................. 12,230,000 13,779,908 Dallas-Fort Worth International Airport Revenue, Joint Series A, FGIC Insured, 6.00%, 11/01/21 ........................................... 2,210,000 2,356,744 Refunding and Improvement, Joint Series A, FGIC Insured, 5.625%, 11/01/21 ............... 12,000,000 12,795,240 Harris County Health Facilities Development Corp. Revenue, Christus Health, Series A, MBIA Insured, Pre-Refunded, 5.375%, 7/01/29 ................................................ 22,000,000 23,621,400 Harris County Hospital District Mortgage Revenue, AMBAC Insured, 7.40%, 2/15/10 .......................................................................... 1,055,000 1,136,689 ETM, 7.40%, 2/15/10 ..................................................................... 595,000 626,987 Harris County Houston Sports Authority Revenue, senior lien, Series G, MBIA Insured, 5.25%, 11/15/30 ................................................................................... 21,325,000 22,173,095 Houston Airport System Revenue, sub. lien, Series B, FSA Insured, 5.50%, 7/01/30 .............. 4,700,000 4,997,839 Houston Water and Sewer System Revenue, junior lien, Series B, FGIC Insured, Pre-Refunded, 5.75%, 12/01/30 ................................... 10,000,000 10,945,100 Series C, FGIC Insured, Pre-Refunded, 5.375%, 12/01/27 .................................. 6,800,000 7,134,492 Laredo ISD Public Facility Corp. Lease Revenue, Series C, AMBAC Insured, 5.00%, 8/01/29 .................................................................................... 1,000,000 1,022,160 Matagorda County Navigation District No. 1 Revenue, Houston Industries Inc. Project, Refunding, Series A, MBIA Insured, 5.25%, 11/01/29 ................................................. 3,185,000 3,297,494 Series B, MBIA Insured, 5.15%, 11/01/29 ................................................. 2,750,000 2,839,650 Palo Duro River Authority GO, Refunding, FSA Insured, 6.375%, 8/01/08 ......................... 3,820,000 3,977,766 Pflugerville GO, FGIC Insured, 5.25%, 8/01/27 .......................................................................... 3,320,000 3,506,584 5.20%, 8/01/32 .......................................................................... 3,000,000 3,126,450 Portland Community Center Complex Development Corp. Sales Tax Revenue, Refunding, AMBAC Insured, 5.45%, 2/15/25 .............................................................. 1,450,000 1,512,582 San Antonio Water Revenue, Refunding and Improvement, MBIA Insured, 5.60%, 5/15/21 .................................................................................... 3,250,000 3,345,778 San Marcos Waterworks and Sewer Systems Revenue, Series 1998, FSA Insured, Pre-Refunded, 5.125%, 8/15/20 .............................................................. 2,870,000 2,956,932
90 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) TEXAS (CONT.) Smithville HDC Mortgage Revenue, Smithville Retirement, Refunding, Series A, MBIA Insured, 6.40%, 1/01/22 ............................................................... $ 900,000 $ 912,348 Tarrant County Health Facilities Development Corp. Health Systems Revenue, Harris Methodist Health System, MBIA Insured, ETM, 6.00%, 9/01/24 ................................. 3,250,000 3,804,840 Tyler Health Facilities Development Corp. Hospital Revenue, East Texas Medical Center Project, Series B, FSA Insured, 5.50%, 11/01/17 .................................................. 1,000,000 1,041,250 Series C, FSA Insured, 5.60%, 11/01/27 .................................................. 1,430,000 1,507,792 Series D, FSA Insured, 5.375%, 11/01/27 ................................................. 8,700,000 9,219,216 United ISD, GO, 5.125%, 8/15/26 ............................................................... 3,000,000 3,138,900 -------------- 184,226,094 -------------- UTAH 0.7% Intermountain Power Agency Power Supply Revenue, Series B, MBIA Insured, Pre-Refunded, 5.75%, 7/01/19 .............................................. 950,000 1,004,606 Refunding, MBIA Insured, 5.75%, 7/01/19 ................................................. 2,300,000 2,423,073 Provo Electric System Revenue, Series A, AMBAC Insured, ETM, 10.375%, 9/15/15 ................. 35,000 46,636 Utah County Hospital Revenue, IHC Health Services Inc., MBIA Insured, ETM, 5.25%, 8/15/21 ................................................................................. 5,000,000 5,158,700 8/15/26 ................................................................................. 5,000,000 5,142,050 -------------- 13,775,065 -------------- VIRGINIA 0.9% Front Royal and Warren County IDA Lease Revenue, School and Capital Improvement, Series B, FSA Insured, 5.00%, 4/01/35 ...................................................... 6,000,000 6,176,580 Middle River Regional Jail Authority Jail Facility Revenue, MBIA Insured, 5.00%, 5/15/28 .................................................................................... 3,510,000 3,651,944 Spotsylvania County Water and Sewer System Revenue, MBIA Insured, Pre-Refunded, 5.40%, 6/01/27 .................................................................................... 3,850,000 4,045,619 Winchester IDA Educational Facilities Revenue, first mortgage, Shenandoah University Project, MBIA Insured, 5.00%, 10/01/18 ......................................................................... 1,000,000 1,038,520 5.25%, 10/01/28 ......................................................................... 1,420,000 1,499,676 -------------- 16,412,339 -------------- WASHINGTON 2.1% Pierce County GO, School District No. 003 Puyallup, FGIC Insured, Pre-Refunded, 5.70%, 12/01/15 ................................................................................... 1,000,000 1,047,010 Port of Longview GO, MBIA Insured, 6.00%, 11/01/15 ............................................ 2,000,000 2,041,960 Seattle Water System Revenue, FGIC Insured, 5.625%, 8/01/26 ................................... 2,000,000 2,103,120 Snohomish County PUD No. 1 Electric Revenue, Generation System, FGIC Insured, ETM, 6.65%, 1/01/16 ............................................................................. 4,250,000 5,006,755 Tacoma GO, Series A, MBIA Insured, 5.625%, 12/01/22 ........................................... 3,400,000 3,528,996 Washington State GO, Various Purpose, Series C, FSA Insured, 5.25%, 1/01/26 ................... 6,000,000 6,341,040 Washington State Health Care Facilities Authority Revenue, Providence Services, MBIA Insured, 5.50%, 12/01/26 ...................................... 5,000,000 5,246,850 Swedish Health Services, Refunding, AMBAC Insured, 5.50%, 11/15/28 ...................... 13,000,000 13,729,950 -------------- 39,045,681 --------------
Quarterly Statements of Investments | 91 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) WEST VIRGINIA 1.4% Harrison County Community Solid Waste Disposal Revenue, Potomac Edison Co., Series C, AMBAC Insured, 6.75%, 8/01/24 .............................................................. $ 11,560,000 $ 11,741,608 Shepherd University Board of Governors Revenue, Residence Facilities Projects, MBIA Insured, 5.00%, 6/01/35 ............................................................... 9,445,000 9,754,796 West Virginia State GO, Series A, FGIC Insured, 5.00%, 11/01/21 ............................... 5,000,000 5,186,000 -------------- 26,682,404 -------------- WISCONSIN 0.2% Superior Ltd. Obligation Revenue, Midwest Energy Resources, Refunding, Series E, FGIC Insured, 6.90%, 8/01/21 ............................................................... 3,000,000 3,845,910 -------------- WYOMING 0.5% Natrona County Hospital Revenue, Wyoming Medical Center Projects, AMBAC Insured, Pre-Refunded, 6.00%, 9/15/24 ............................................................... 9,885,000 10,062,238 -------------- TOTAL LONG TERM INVESTMENTS (COST $1,761,066,896) ............................................. 1,857,843,645 -------------- SHORT TERM INVESTMENTS 0.6% BONDS 0.6% CALIFORNIA 0.1% (b)Los Angeles Water and Power Revenue, Refunding, Sub Series B-1, Weekly VRDN and Put, 3.01%, 7/01/34 ............................................................................. 1,000,000 1,000,000 -------------- GEORGIA 0.1% (b)Atlanta Water and Wastewater Revenue, Series C, FSA Insured, Daily VRDN and Put, 3.00%, 11/01/41 ................................................................................... 2,000,000 2,000,000 -------------- KENTUCKY 0.0%(a) (b)Berea Educational Facilities Revenue, Series A, Daily VRDN and Put, 3.00%, 6/01/32 ............ 300,000 300,000 -------------- MICHIGAN 0.0%(a) (b)Michigan State University Revenues, Series A, Daily VRDN and Put, 3.00%, 8/15/32 .............. 500,000 500,000 -------------- NEW YORK 0.1% (b)Long Island Power Authority Electric System Revenue, Sub Series 2, Daily VRDN and Put, 2.97%, 5/01/33 ............................................................................. 2,600,000 2,600,000 --------------
92 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM INVESTMENTS (CONT.) BONDS (CONT.) TENNESSEE 0.3% (b)Clarksville PBA Revenue, Pooled Financing, Tennessee Municipal Bond Fund, Daily VRDN and Put, 3.03%, 1/01/33 ................................................................................. $ 2,900,000 $ 2,900,000 7/01/34 ................................................................................. 600,000 600,000 (b)Montgomery County PBA Pooled Financing Revenue, Tennessee County Loan Pool, Daily VRDN and Put, 3.03%, 7/01/34 ......................................................... 1,600,000 1,600,000 -------------- 5,100,000 -------------- TOTAL SHORT TERM INVESTMENTS (COST $11,500,000) ............................................... 11,500,000 -------------- TOTAL INVESTMENTS (COST $1,772,566,896) 98.7% ................................................. 1,869,343,645 OTHER ASSETS, LESS LIABILITIES 1.3% ........................................................... 23,731,251 -------------- NET ASSETS 100.0% ............................................................................. $1,893,074,896 ==============
See Selected Portfolio Abbreviations on page 169. (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. Quarterly Statements of Investments | 93 See Notes to Statements of Investments. | FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN KENTUCKY TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 97.8% BONDS 97.8% KENTUCKY 84.3% Bellevue GO, Public Project, Harbor Greene Project, 5.00%, 2/01/34 ............................ $ 1,065,000 $ 1,091,444 Boone County GO, Public Project, 5.00%, 4/01/20 ................................................................................. 1,310,000 1,376,496 4/01/21 ................................................................................. 1,000,000 1,047,350 Boone County PCR, Collateralized, Dayton Power and Light Co., Refunding, Series A, 6.50%, 11/15/22 ........................................................................ 170,000 173,322 FGIC Insured, 4.70%, 1/01/28 ............................................................ 3,000,000 2,999,910 Boone Florence Water Commission Water Supply Systems Revenue, Refunding, FGIC Insured, 5.00%, 12/01/22 ................................................................................ 1,200,000 1,251,936 12/01/27 ................................................................................ 2,000,000 2,070,500 Bowling Green ISD, Finance Corp. School Building Revenue, 5.75%, 1/01/20 ...................... 1,140,000 1,231,086 Campbell and Kenton Counties Sanitation District No.1 Sanitation District Revenue, Series A, FSA Insured, 5.00%, 8/01/19 ................................................................................. 1,500,000 1,568,085 8/01/24 ................................................................................. 2,000,000 2,068,480 Christian County Hospital Revenue, Jennie Stuart Medical Center, Series A, 6.00%, 7/01/17 .................................................................................... 1,000,000 1,032,340 Christian County Public Courthouse Corp. Lease Revenue, District Court Facilities Project, 5.125%, 8/01/20 ............................................................................ 1,015,000 1,073,261 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 2,091,880 Fayette County School District Finance Corp. School Building Revenue, Pre-Refunded, 5.50%, 9/01/18 ............................................................ 2,500,000 2,703,750 Refunding, Series B, FSA Insured, 4.00%, 1/01/17 ........................................ 1,000,000 988,520 Series A, AMBAC Insured, 5.25%, 4/01/20 ................................................. 2,160,000 2,294,978 Florence GO, Public Project, Series A, FGIC Insured, 5.00%, 11/01/32 .......................... 1,000,000 1,024,160 Greater Kentucky Housing Assistance Corp. Mortgage Revenue, Section 8 Assisted Projects, Refunding, Series A, MBIA Insured, 6.10%, 1/01/24 .......................................... 405,000 405,154 Hancock County Solid Waste Disposal Revenue, Willamette Industries Inc. Project, 6.60%, 5/01/26 .................................................................................... 1,000,000 1,026,950 Hardin County School District Finance Corp. School Building Revenue, Pre-Refunded, 5.75%, 2/01/20 .................................................................................... 1,500,000 1,646,055 Hardin County Water District No. 2 Water System Revenue, Series A, AMBAC Insured, 5.00%, 1/01/31 .................................................................................... 2,620,000 2,685,893 Harlan County Justice Center Revenue, First Judicial Center Project, AMBAC Insured, 5.00%, 3/01/25 .................................................................................... 1,330,000 1,385,554 Henry County Water District No. 2 Water Revenue, Refunding, MBIA Insured, 4.75%, 1/01/28 .................................................................................... 2,035,000 2,053,193 Jefferson County Health Facilities Revenue, Jewish Hospital Healthcare Services Inc., Refunding, AMBAC Insured, 5.75%, 1/01/26 ................................................... 1,000,000 1,041,740 Jefferson County PCR, E.I. DuPont De Nemours, Series A, 6.30%, 7/01/12 ........................ 450,000 459,288 Jefferson County School District Financial Corp. School Building Revenue, Series A, FSA Insured, 5.25%, 7/01/18 ................................................................ 1,500,000 1,580,805 Jessamine County School District Finance Corp. School Building Revenue, Pre-Refunded, 5.50%, 1/01/21 ............................................................................. 2,500,000 2,554,175
94 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN KENTUCKY TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM INVESTMENTS (CONT.) BONDS (CONT.) KENTUCKY (CONT.) Kenton County Airport Board Airport Revenue, Cincinnati/Northern Kentucky International Airport, Series B, MBIA Insured, 5.75%, 3/01/13 ............................................ $ 1,230,000 $ 1,261,279 Kentucky Area Development Districts Financing Trust Lease Acquisition Program COP, Series L, XLCA Insured, 5.00%, 11/01/29 .............................................................. 1,000,000 1,016,780 Kentucky Area Development Districts Financing Trust Lease Program Revenue, City of Ewing, 6.00%, 6/01/30 .......................................................................... 2,000,000 2,167,920 Series C, 6.00%, 6/01/30 ................................................................ 1,285,000 1,409,478 Series E, 5.70%, 6/01/22 ................................................................ 1,000,000 1,097,240 Kentucky Asset/Liability Commission General Receipts Revenue, University of Kentucky, Project Notes, FGIC Insured, 5.00%, 10/01/25 .............................................. 3,000,000 3,149,460 Kentucky Economic Development Finance Authority Hospital System Revenue, Appalachian Regional Health Center Facility, Refunding and Improvement, 5.875%, 10/01/22 ............... 2,000,000 1,918,400 Kentucky Economic Development Finance Authority Revenue, Catholic Health Project, Refunding and Improvement, Series A, 5.00%, 12/01/18 ........... 2,000,000 2,060,240 Norton Healthcare Inc., Series C, MBIA Insured, 6.15%, 10/01/24 ......................... 405,000 460,380 Norton Healthcare Inc., Series C, MBIA Insured, 6.15%, 10/01/25 ......................... 935,000 1,061,515 Kentucky Infrastructure Authority Revenue, Series A, 5.00%, 6/01/19 ................................................................................. 1,140,000 1,191,676 6/01/20 ................................................................................. 1,250,000 1,307,287 6/01/21 ................................................................................. 1,190,000 1,242,158 Kentucky Rural Water Finance Corp. Public Project Revenue, Flexible Term Program, Series A, 5.00%, 2/01/26 ......................................... 1,055,000 1,092,780 Multimodal Flexible Term PG H, 5.00%, 2/01/34 ........................................... 1,500,000 1,538,685 Kentucky State Property and Buildings Commission Revenues, Project No. 62, Refunding, 2nd Series, 5.25%, 10/01/18 .................................. 3,540,000 3,762,241 Project No. 64, MBIA Insured, Pre-Refunded, 5.50%, 5/01/17 .............................. 1,535,000 1,653,072 Project No. 69, Series A, FSA Insured, Pre-Refunded, 5.00%, 8/01/21 ..................... 2,300,000 2,469,418 Project No. 77, MBIA Insured, Pre-Refunded, 5.00%, 8/01/23 .............................. 1,100,000 1,189,958 Kentucky State Turnpike Authority Economic Development Road Revenue, Revitalization Project, Series A, AMBAC Insured, 5.00%, 7/01/25 .................................................... 2,000,000 2,088,080 Lawrenceburg Water and Sewer Revenue, MBIA Insured, 5.00%, 10/01/28 ........................... 1,730,000 1,787,557 Louisville and Jefferson County Metropolitan Sewer District Sewer and Drain System Revenue, Series A, FGIC Insured, 5.00%, 5/15/30 ..................................................... 2,750,000 2,808,657 Louisville and Jefferson County Student Housing Revenue, University of Louisville, Phase 3-A, AMBAC Insured, 5.00%, 6/01/34 ........................................................... 3,755,000 3,875,235 Series A, AMBAC Insured, 5.00%, 6/01/25 ................................................. 1,000,000 1,043,760 Louisville Parking Authority of River City Revenue, MBIA Insured, 5.00%, 6/01/29 .............. 3,290,000 3,379,817 Louisville Waterworks Board Water System Revenue, Louisville Water Co., FSA Insured, 5.50%, 11/15/25 ............................................................ 2,000,000 2,134,260 Refunding, FSA Insured, 5.25%, 11/15/24 ................................................. 2,500,000 2,659,625 McCracken County Hospital Revenue, Mercy Health System, Refunding, Series A, MBIA Insured, 6.40%, 11/01/07 ............................................................................ 500,000 506,010 Northern Kentucky University COP, AMBAC Insured, 5.00%, 12/01/27 ............................. 1,500,000 1,547,265 Northern Kentucky Water Service District Revenue, MBIA Insured, 4.875%, 2/01/20 ............... 1,270,000 1,309,319 Oldham County School District Finance Corp. School Building Revenue, MBIA Insured, 5.00%, 5/01/24 .................................................................................... 5,680,000 5,917,083
Quarterly Statements of Investments | 95 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 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 $ 849,232 Pre-Refunded, 8.10%, 7/01/15 ............................................................ 145,000 151,754 Pre-Refunded, 8.10%, 7/01/15 ............................................................ 105,000 109,383 -------------- 102,143,309 -------------- U. S. TERRITORIES 13.5% Children's Trust Fund Tobacco Settlement Revenue, Asset-Backed Bonds, Refunding, 5.375%, 5/15/33 .................................................................................... 1,835,000 1,855,332 Puerto Rico Commonwealth GO, Public Improvement, Series A, 5.125%, 7/01/31 ......................................................................... 3,125,000 3,166,406 Pre-Refunded, 5.125%, 7/01/31 ........................................................... 1,875,000 2,027,981 Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Series D, Pre-Refunded, 5.375%, 7/01/36 ................................................. 2,500,000 2,737,675 Series K, 5.00%, 7/01/27 ................................................................ 3,000,000 3,020,310 Puerto Rico PBA Revenue, Government Facilities, Series D, 5.25%, 7/01/36 .......................................................................... 455,000 465,379 Pre-Refunded, 5.25%, 7/01/36 ............................................................ 995,000 1,082,401 Virgin Islands PFAR, senior lien, Fund Loan Notes, Refunding, Series A, 5.625%, 10/01/25 ...... 2,000,000 2,077,040 -------------- 16,432,524 -------------- TOTAL LONG TERM INVESTMENTS (COST $113,536,174) ............................................... 118,575,833 -------------- SHORT TERM INVESTMENTS (COST $800,000) 0.7% BONDS 0.7% KENTUCKY 0.7% (a)Berea Educational Facilities Revenue, Series A, Daily VRDN and Put, 3.00%, 6/01/32 ............ 800,000 800,000 -------------- TOTAL INVESTMENTS (COST $114,336,174) 98.5% ................................................... 119,375,833 OTHER ASSETS, LESS LIABILITIES 1.5% ........................................................... 1,807,583 -------------- NET ASSETS 100.0% ............................................................................. $ 121,183,416 ==============
See Selected Portfolio Abbreviations on page 169. (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. 96 | See Notes to Statements of Investments. | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN LOUISIANA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 98.1% BONDS 98.1% LOUISIANA 93.4% Bossier City Public Improvement Sales and Use Tax Revenue, FGIC Insured, 5.00%, 12/01/19 ........................................................... $ 1,145,000 $ 1,187,067 Refunding, FGIC Insured, 5.00%, 12/01/21 ................................................ 1,875,000 1,924,875 Refunding, FGIC Insured, 5.00%, 12/01/22 ................................................ 1,515,000 1,552,375 Bossier Parish Sales and Use Tax Revenue, AMBAC Insured, 5.00%, 7/01/20 ................. 1,900,000 1,993,575 Calcasieu Parish Public Trust Authority Student Lease Revenue, McNeese Student Housing Project, MBIA Insured, 5.25%, 5/01/21 ................................................................................. 1,505,000 1,594,924 5/01/33 ................................................................................. 2,500,000 2,596,175 De Soto Parish Environmental Improvement Revenue, International Paper Co. Project, Series A, 5.65%, 12/01/21 ............................................................................ 1,000,000 1,021,060 De Soto Parish PCR, Cleco Utility Group Inc. Project, Refunding, AMBAC Insured, 5.875%, 9/01/29 .................................................................................... 11,500,000 12,481,410 Denham Spring Livingston Housing and Mortgage Finance Authority SFHR, Series A, FHA Insured, ETM, 7.20%, 8/01/10 .......................................................... 1,380,000 1,592,382 East Baton Rouge Mortgage Finance Authority Revenue, SFM Purchase, Refunding, Series A, 6.10%, 10/01/29 ............................................................................ 250,000 255,288 East Baton Rouge Parish Park and Recreation District GO, FSA Insured, 5.00%, 5/01/25 .......... 3,325,000 3,430,602 East Baton Rouge Parish Sales and Use Tax Revenue, Public Improvement, Series ST, FGIC Insured, 5.00%, 2/01/20 ............................................................... 1,000,000 1,038,620 East Baton Rouge Parish Sales Tax Revenue, Public Improvement, Refunding, Series A, AMBAC Insured, 5.00%, 2/01/24 .............................................................. 2,000,000 2,074,240 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 5,082,000 Greater New Orleans Expressway Commission Revenue, Refunding, AMBAC Insured, 5.00%, 11/01/27 ................................................................................... 5,000,000 5,141,100 Jefferson Parish Revenue, Public Improvement, 24th Judicial District Project, MBIA Insured, 5.00%, 4/01/29 ............................................................................. 3,060,000 3,141,518 Jefferson Parish West Jefferson Park and Community Center Revenue, MBIA Insured, 5.00%, 10/01/29 ................................................................................... 2,925,000 3,006,725 Jefferson Sales Tax District Special Sales Tax Revenue, AMBAC Insured, 5.00%, 12/01/22 .......................................................... 2,000,000 2,086,280 Refunding, FSA Insured, 5.00%, 12/01/22 ................................................. 3,000,000 3,074,010 Special Tax Bond, AMBAC Insured, 5.00%, 12/01/20 ........................................ 4,195,000 4,341,867 Lafayette Public Trust Financing Authority Revenue, Ragin Cajun Facilities Inc. Project, MBIA Insured, 5.00%, 10/01/22 .............................................................. 1,500,000 1,562,895 Lafayette Public Trust Financing Authority SFMR, Series A, ETM, 7.20%, 4/01/11 ................ 30,000 34,981 Lafayette Utilites Revenue, MBIA Insured, 5.00%, 11/01/28 ..................................... 5,000,000 5,148,250 Lafourche Parish Home Mortgage Authority SFMR, ETM, 7.40%, 7/01/10 ............................ 65,000 70,665 Livingston Parish Waterworks Revenue, Ward Two Water District, AMBAC Insured, 5.125%, 4/01/29 .................................................................................... 2,200,000 2,306,832 Louisiana HFA Mortgage Revenue, MF, Westview Project, FHA Insured, 7.80%, 4/01/30 ....................................... 750,000 752,565 SF, Series A-1, GNMA Secured, 5.45%, 12/01/20 ........................................... 985,000 1,004,148 Louisiana Local Government Environmental Facilities CDA Revenue, Baton Rouge Apartments, Series A, MBIA Insurd, 6.375%, 1/01/30 .......................... 4,265,000 4,549,859 Delgado Community College Foundation Project, AMBAC Insured, 6.00%, 10/01/29 ............ 1,000,000 1,094,840 Jefferson Parking Garage Project, AMBAC Insured, 5.00%, 9/01/21 ......................... 2,215,000 2,285,016
Quarterly Statements of Investments | 97 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 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.) MBIA Insured, 5.00%, 12/01/26 ........................................................... $ 3,000,000 $ 3,081,840 Parking Facilities Corp. Garage Project, Series A, AMBAC Insured, 5.375%, 10/01/26 ...... 2,000,000 2,108,520 Parking Facilities Corp. Garage Project, Series A, AMBAC Insured, 5.375%, 10/01/31 ...... 2,000,000 2,096,980 Southeastern Louisiana Student Housing, Series A, MBIA Insured, 5.00%, 8/01/27 .......... 3,000,000 3,091,200 Louisiana Local Government Environmental Facilities GO, AMBAC Insured, 5.25%, 4/01/29 .................................................................................... 1,000,000 1,051,860 Louisiana Public Facilities Authority Hospital Revenue, Franciscan Missionaries, Series C, MBIA Insured, Pre-Refunded, 5.00%, 7/01/19 ........... 3,750,000 3,884,700 Pendleton Memorial Methodist, Pre-Refunded, 5.25%, 6/01/28 .............................. 4,500,000 4,731,795 Touro Infirmary Project, Series A, 5.625%, 8/15/29 ...................................... 6,000,000 5,702,280 Louisiana Public Facilities Authority Revenue, Centenary College Project, Refunding, 5.75%, 2/01/29 .................................... 7,300,000 6,941,278 Dillard University Project, Refunding, AMBAC Insured, 5.00%, 2/01/18 .................... 1,500,000 1,555,290 Dillard University Project, Series A, AMBAC Insured, 5.30%, 8/01/26 ..................... 1,540,000 1,622,760 FHA Insured Mortgage, Baton Rouge General, MBIA Insured, 5.25%, 7/01/33 ................. 5,000,000 5,242,350 Mortgage Purchase, HFA, Refunding, Series A, FNMA Insured, 6.40%, 7/20/20 ............... 1,900,000 1,918,373 Ochsner Clinic Foundation Project, Series B, 5.75%, 5/15/23 ............................. 2,500,000 2,587,000 Tulane University, AMBAC Insured, Pre-Refunded, 6.05%, 10/01/25 ......................... 5,500,000 5,735,400 Tulane University, Refunding, Series A, AMBAC Insured, 5.125%, 7/01/27 .................. 3,000,000 3,107,280 Xavier University of Louisiana Project, Refunding, MBIA Insured, 5.25%, 9/01/17 ......... 1,000,000 1,047,700 Xavier University of Louisiana Project, Refunding, MBIA Insured, 5.25%, 9/01/27 ......... 6,015,000 6,269,555 Louisiana State Gas and Fuels Tax Revenue, Series A, AMBAC Insured, 5.00%, 6/01/27 ........................................................... 3,500,000 3,573,815 FGIC Insured, 5.00%, 5/01/27 ............................................................ 4,000,000 4,127,040 FGIC Insured, 5.00%, 5/01/30 ............................................................ 1,500,000 1,544,175 Louisiana State Office Facilities Corp. Lease Revenue, Capital Complex Program, AMBAC Insured, 5.00%, 5/01/21 ........................................................... 2,500,000 2,587,075 Series A, MBIA Insured, 5.375%, 3/01/19 ................................................. 3,000,000 3,180,420 Louisiana State University and Agricultural and Mechanical College Board Revenue, AMBAC Insured, 5.00%, 7/01/22 ........................................................... 5,000,000 5,220,650 Auxiliary, Series B, AMBAC Insured, 5.00%, 7/01/27 ...................................... 1,500,000 1,545,270 Louisiana State University and Agricultural and Mechanical College University Revenues, Auxiliary, MBIA Insured, Pre-Refunded, 5.50%, 7/01/26 ...................................... 1,500,000 1,549,260 Monroe Sales and Use Tax Revenue, FGIC Insured, 5.25%, 7/01/23 ................................ 1,535,000 1,638,582 New Orleans GO, Drain Systems, AMBAC Insured, 5.00%, 12/01/18 ........................................... 1,000,000 1,030,750 Public Improvement, AMBAC Insured, 5.25%, 12/01/29 ...................................... 1,485,000 1,554,290 Public Improvement, FGIC Insured, 5.25%, 12/01/21 ....................................... 1,295,000 1,366,976 Public Improvement, FGIC Insured, 5.125%, 12/01/26 ...................................... 2,000,000 2,069,220 Refunding, MBIA Insured, 5.125%, 9/01/21 ................................................ 2,000,000 2,087,180 Orleans Levee District Revenue, Levee Improvement, Refunding, FSA Insured, 5.95%, 11/01/14 ................................................................................... 635,000 655,726 Orleans Parish Parishwide School District GO, Refunding, Series B, FGIC Insured, 5.50%, 9/01/20 .................................................................................... 1,000,000 1,039,800 Orleans Parish School Board GO, Series 95, FGIC Insured, 5.375%, 9/01/18 ...................... 1,950,000 1,959,984 Ouachita Parish Hospital Service District No. 1 Revenue, Glenwood Regional Medical Center, Refunding, FSA Insured, 5.75%, 5/15/21 ..................................................... 2,500,000 2,665,975
98 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN LOUISIANA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) LOUISIANA (CONT.) Ouachita Parish La West Ouachita Parish School District Sales and Use Tax Revenue, FGIC Insured, 5.75%, 9/01/24 ............................................................... $ 1,410,000 $ 1,526,720 Rapides Parish Housing and Mortgage Finance Authority Revenue, SFM Purchase, FHA Insured, ETM, 7.25%, 8/01/10 ........................................................................ 725,000 789,271 Shreveport Certificates of Indebtedness Revenue, Refunding, Series A, AMBAC Insured, 5.00%, 10/01/16 ................................................................................... 1,000,000 1,048,520 St. Bernard Home Mortgage Authority Revenue, SF, Series A, FGIC Insured, ETM, 7.50%, 9/01/10 .................................................................................... 435,000 510,755 St. Bernard Parish Exempt Facilities Revenue, Mobil Oil Corp. Project, 5.90%, 11/01/26 ........ 1,500,000 1,549,215 St. John's Baptist Parish EDR, USX Corp. Project, Refunding, 5.35%, 12/01/13 .................. 2,500,000 2,603,475 St. Tammany's Public Trust Financing Authority SFMR, Series A, ETM, 7.20%, 7/01/10 ................................................................................. 65,000 70,162 7/01/11 ................................................................................. 50,000 59,152 State Colleges and Universities Lease Revenue, University of Southwestern Louisiana, Cajundome, MBIA Insured, 5.65%, 9/01/26 .................................................... 3,080,000 3,216,536 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 2,295,377 University of Louisiana Board of Supervisors Lease Revenue, LaFayette Cajundome Convention, MBIA Insured, 6.25%, 9/01/29 ............................................................... 1,200,000 1,324,116 University System Board of Supervisors Revenue, Northwestern State University Wellness, AMBAC Insured, 5.10%, 4/01/24 .............................................................. 1,000,000 1,034,750 -------------- 194,626,542 -------------- U. S. TERRITORIES 4.7% Puerto Rico Commonwealth GO, Public Improvement, MBIA Insured, Pre-Refunded, 5.75%, 7/01/26 .............................................. 4,400,000 4,799,300 Series A, 5.00%, 7/01/33 ................................................................ 2,000,000 1,982,180 Virgin Islands PFAR, senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/18 ....... 3,000,000 3,121,950 -------------- 9,903,430 -------------- TOTAL LONG TERM INVESTMENTS (COST $196,760,576) .............................................. 204,529,972 -------------- SHORT TERM INVESTMENTS (COST $100,000) 0.1% BONDS 0.1% LOUISIANA 0.1% (a)Louisiana State Offshore Terminal Authority Deepwater Port Revenue, Loop Inc. Project, First Stage, ACES, Refunding, Daily VRDN and Put, 3.00%, 9/01/17 ........................... 100,000 100,000 -------------- TOTAL INVESTMENTS (COST $196,860,576) 98.2% ................................................... 204,629,972 OTHER ASSETS, LESS LIABILITIES 1.8% ........................................................... 3,792,457 -------------- NET ASSETS 100.0% ............................................................................. $ 208,422,429 ==============
See Selected Portfolio Abbreviations on page 169. (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 | 99 See Notes to Statements of Investments. | FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MARYLAND TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 99.2% BONDS 99.2% MARYLAND 83.1% Anne Arundel County GO, Refunding, 4.625%, 3/01/32 ........................................... $ 2,000,000 $ 2,020,100 Anne Arundel County PCR, Baltimore Gas and Electric Co. Project, Refunding, 6.00%, 4/01/24 ................................................................................... 9,500,000 9,600,795 Baltimore County Metropolitan 68th District GO, Refunding, 5.00%, 8/01/32 .................... 1,000,000 1,037,740 Baltimore Economic Development Lease Revenue, Armistead Partnership, Refunding, Series A, 7.00%, 8/01/11 ............................................................................ 2,355,000 2,368,777 Baltimore GO, Consolidated Public Improvement, Series A, FGIC Insured, Pre-Refunded, 5.30%, 10/15/17 .................................. 1,500,000 1,584,135 Series A, FSA Insured, Pre-Refunded, 5.25%, 10/15/17 ................................... 3,300,000 3,579,477 Series B, 7.15%, 10/15/08 .............................................................. 1,000,000 1,098,780 Baltimore Port Facilities Revenue, Consolidated Coal Sales, Series A, 6.50%, 10/01/11 ........ 1,850,000 1,961,259 Baltimore Project Revenue, Wastewater Projects, Refunding, FGIC Insured, 5.125%, 7/01/42 .......................... 7,630,000 7,898,423 Wastewater Projects, Series A, FGIC Insured, 5.00%, 7/01/33 ............................ 3,000,000 3,106,950 Wastewater Projects, Series B, FGIC Insured, Pre-Refunded, 5.00%, 7/01/28 .............. 4,000,000 4,233,960 Water Projects, Series A, MBIA Insured, 5.00%, 7/01/35 ................................. 4,240,000 4,413,331 Baltimore Revenue, Wastewater Project, Series A, FGIC Insured, Pre-Refunded, 5.80%, 7/01/15 ............... 5,000,000 5,403,800 Water Project, Series A, FSA Insured, Pre-Refunded, 5.75%, 7/01/30 ..................... 10,000,000 10,951,600 Carroll County Revenue, Fairhaven and Copper Ridge, Refunding, Series A, Radian Insured, 5.375%, 1/01/16 ........................................................................ 2,000,000 2,115,460 5.50%, 1/01/19 ......................................................................... 1,000,000 1,046,460 5.625%, 1/01/25 ........................................................................ 2,000,000 2,121,460 Gaithersburg Hospital Facilities Revenue, Shady Grove Adventist Hospital, Refunding and Improvement, FSA Insured, 6.00%, 9/01/21 .................................................. 8,000,000 8,204,640 Harford County GO, Consolidated Public Improvement, 4.40%, 1/15/15 ......................................................................... 1,450,000 1,496,415 4.45%, 1/15/17 ......................................................................... 1,125,000 1,156,028 Howard County Mortgage Revenue, Normandy Woods III Apartments Project, Refunding, Series A, FHA Insured, 6.10%, 7/01/25 ..................................................... 2,000,000 2,058,400 Maryland Environmental Services COP, Water and Waste Facilities, Series A, 6.70%, 6/01/11 ................................................................................... 1,900,000 1,903,458 Maryland State CDA, Department of Housing and Community Development Revenue, Housing, Series A, 6.00%, 7/01/32 ...................................................... 4,000,000 4,118,840 Residential, Series D, 5.25%, 9/01/29 .................................................. 3,730,000 3,751,746 Series B, 5.35%, 9/01/30 ............................................................... 1,420,000 1,435,421 SF Program, First Series, 5.00%, 4/01/17 ............................................... 220,000 224,994 SF Program, Second Series, 5.00%, 4/01/17 .............................................. 3,000,000 3,038,940 Maryland State EDC, Utility Infrastructure Revenue, University College Park Project, AMBAC Insured, 5.00%, 7/01/19 ............................................................. 1,710,000 1,792,867 Maryland State Energy Financing Administration Solid Waste Disposal Revenue, Ltd. Obligation, Wheelabrator Water Projects, 6.45%, 12/01/16 .............................................. 3,000,000 3,125,250 Maryland State Health and Higher Educational Facilities Authority Revenue, Anne Arundel Health System, Series A, 5.125%, 7/01/34 .................................. 2,500,000 2,547,650 Anne Arundel Medical Center, FSA Insured, 5.125%, 7/01/33 .............................. 8,365,000 8,599,889 Carroll County General Hospital, 6.00%, 7/01/26 ........................................ 2,000,000 2,123,420 Carroll County General Hospital, 5.80%, 7/01/32 ........................................ 5,000,000 5,250,050
100 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 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, (cont.) Catholic Health Initiatives, Series A, 6.00%, 12/01/20 ................................. $ 715,000 $ 793,514 Catholic Health Initiatives, Series A, ETM, 6.00%, 12/01/20 ............................ 2,205,000 2,425,919 Catholic Health Initiatives, Series A, ETM, 6.00%, 12/01/24 ............................ 2,025,000 2,210,348 Charity Obligation Group, Series A, 5.00%, 11/01/19 .................................... 1,515,000 1,557,708 Charity Obligation Group, Series A, 5.00%, 11/01/29 .................................... 2,250,000 2,303,437 Doctors Community Hospital, Refunding, 5.75%, 7/01/13 .................................. 2,760,000 2,761,684 Helix Health Issue, AMBAC Insured, ETM, 5.00%, 7/01/27 ................................. 11,000,000 11,636,790 Johns Hopkins Medical Institutions, Series A, 5.00%, 5/15/37 ........................... 7,000,000 7,190,750 Johns Hopkins University Issue, Pre-Refunded, 6.00%, 7/01/39 ........................... 5,000,000 5,481,550 Johns Hopkins, AMBAC Insured, 5.00%, 7/01/27 ........................................... 655,000 677,486 Maryland Institute College of Art, 5.00%, 6/01/35 ...................................... 2,000,000 1,993,800 Maryland Institute College of Art, 5.625%, 6/01/36 ..................................... 3,600,000 3,752,388 Maryland Institute College of Art, 5.00%, 6/01/40 ...................................... 6,000,000 5,902,860 Mercy Medical Center Project, Refunding, FSA Insured, 5.75%, 7/01/26 ................... 1,500,000 1,538,370 Mercy Medical Center, Refunding, 5.625%, 7/01/31 ....................................... 5,500,000 5,659,775 North Arundel Hospital, Pre-Refunded, 6.50%, 7/01/26 ................................... 1,000,000 1,132,880 North Arundel Hospital, Pre-Refunded, 6.50%, 7/01/31 ................................... 1,320,000 1,495,402 Parking, Johns Hopkins Medical Institutions, AMBAC Insured, 5.00%, 7/01/34 ............. 5,000,000 5,186,850 Roland Park Place Project, Refunding, 5.625%, 7/01/18 .................................. 2,500,000 2,510,125 Roland Park Place Project, Refunding, 5.625%, 7/01/24 .................................. 2,680,000 2,687,290 Union Hospital Cecil County Issue, 5.00%, 7/01/35 ...................................... 3,015,000 3,042,286 University of Maryland Medical System, Pre-Refunded, 6.75%, 7/01/30 .................... 11,000,000 12,576,850 Upper Chesapeake Hospitals, Series A, FSA Insured, 5.375%, 1/01/28 ..................... 5,000,000 5,186,400 Upper Chesapeake Hospitals, Series A, FSA Insured, 5.125%, 1/01/33 ..................... 7,100,000 7,248,248 Maryland State Health and Higher Revenue, John Hopkins University, Series A, 5.00%, 7/01/32 ................................................................................... 29,000,000 29,982,810 Maryland State Stadium Authority Lease Revenue, Convention Center Expansion, AMBAC Insured, 5.875%, 12/15/14 ........................................................... 4,655,000 4,708,114 Maryland State Stadium Authority Sports Facilities Lease Revenue, AMBAC Insured, 5.75%, 3/01/22 ......................................................................... 5,000,000 5,077,550 5.80%, 3/01/26 ......................................................................... 2,045,000 2,076,963 Maryland State Transportation Authority Lease Revenue, Metrorail Parking Project, AMBAC Insured, 5.00%, 7/01/28 ............................................................. 3,975,000 4,155,226 Maryland State Transportation Authority Parking Revenue, AMBAC Insured, 5.00%, 3/01/27 ....... 8,000,000 8,277,840 Maryland State Transportation Authority Transportation Facility Projects Revenue, FSA Insured, 5.00%, 7/01/27 ................................................................................ 5,890,000 6,165,593 7/01/31 ................................................................................ 7,455,000 7,749,696 7/01/32 ................................................................................ 7,165,000 7,437,915 7/01/34 ................................................................................ 7,500,000 7,780,275 Montgomery County GO, 4.75%, 4/01/22 ......................................................................... 3,000,000 3,118,980 Consolidated, Public Improvement, Series A, 5.00%, 6/01/24 ............................. 5,000,000 5,302,350 Pre-Refunded, 4.75%, 2/01/17 ........................................................... 5,000,000 5,326,750 Montgomery County Housing Opportunities Commission MFHR, Series B, FHA Insured, 6.00%, 7/01/37 ................................................................................... 2,500,000 2,564,275
Quarterly Statements of Investments | 101 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MARYLAND TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MARYLAND (CONT.) Montgomery County Revenue Authority Golf Course System Revenue, Series A, Pre-Refunded, 6.125%, 10/01/22 .......................................................................... $ 1,000,000 $ 1,042,560 Morgan State University Maryland and Aux Facilities Fees Revenue, Series A, FGIC Insured, 5.00%, 7/01/32 ............................................................................ 6,450,000 6,688,327 Prince George's County GO, Consolidated Public Improvement, 4.40%, 9/15/22 ......................................................................... 10,000,000 10,101,100 MBIA Insured, 5.00%, 4/15/18 ........................................................... 2,100,000 2,187,129 Prince George's County IDA, Lease Revenue, Upper Marlboro Justice-B, MBIA Insured, 4.75%, 6/30/30 ................................................................................... 4,000,000 4,050,600 Prince George's County PCR, Potomac Electric Project, Refunding, 6.00%, 9/01/22 ......................................................................... 1,200,000 1,204,980 6.375%, 1/15/23 ........................................................................ 2,975,000 3,037,445 St. Mary's College Revenue, Academic Fees and Auxiliary Fees Project, Series A, AMBAC Insured, Pre-Refunded, 5.55%, 9/01/30 ............................................... 2,000,000 2,182,320 Westminster Education Facilities Revenue, Mc Daniel College, 5.50%, 4/01/27 ................................................................................ 425,000 443,105 4/01/32 ................................................................................ 1,500,000 1,558,590 -------------- 344,543,718 -------------- U. S. TERRITORIES 16.1% Puerto Rico Commonwealth GO, Public Improvement, FSA Insured, 5.125%, 7/01/30 ........................................................... 2,870,000 2,994,788 FSA Insured, Pre-Refunded, 5.25%, 7/01/27 .............................................. 1,520,000 1,653,562 FSA Insured, Pre-Refunded, 5.125%, 7/01/30 ............................................. 4,360,000 4,715,732 Refunding, FSA Insured, 5.25%, 7/01/27 ................................................. 1,015,000 1,081,432 Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Refunding, Series J, MBIA Insured, 5.00%, 7/01/29 ...................................... 5,000,000 5,212,150 Series D, Pre-Refunded, 5.25%, 7/01/38 ................................................. 5,000,000 5,439,200 Series G, 5.00%, 7/01/33 ............................................................... 7,000,000 6,937,630 Puerto Rico Electric Power Authority Power Revenue, Refunding, Series SS, FSA Insured, 5.00%, 7/01/30 ...................................... 5,000,000 5,248,100 Series HH, FSA Insured, 5.25%, 7/01/29 ................................................. 10,780,000 11,506,788 Series II, 5.25%, 7/01/31 .............................................................. 3,000,000 3,105,930 Series RR, FGIC Insured, 5.00%, 7/01/35 ................................................ 7,000,000 7,297,220 Series RR, XLCA Insured, 5.00%, 7/01/30 ................................................ 2,000,000 2,083,340 Puerto Rico PBA Revenue, Government Facilities, Series D, 5.25%, 7/01/36 ......................................................................... 520,000 531,861 Pre-Refunded, 5.25%, 7/01/36 ........................................................... 1,480,000 1,610,003 Virgin Islands PFAR, Gross Receipts Taxes Loan Note, FSA Insured, 5.00%, 10/01/22 ........................... 2,000,000 2,110,780 senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/18 ..................... 1,700,000 1,769,105 senior lien, Refunding, Series A, 5.50%, 10/01/14 ...................................... 3,300,000 3,456,585 -------------- 66,754,206 -------------- TOTAL LONG TERM INVESTMENTS (COST $394,929,968) .............................................. 411,297,924 --------------
102 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MARYLAND TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM INVESTMENTS 0.9% BONDS 0.9% MARYLAND 0.9% (a)Baltimore County Revenue, Oak Crest Village Inc. Project, Series A, Weekly VRDN and Put, 3.05%, 1/01/29 ............................................................................ $ 475,000 $ 475,000 (a)Maryland State EDC Revenue, U.S. Pharmacopeial Project, Series A, AMBAC Insured, Daily VRDN and Put, 3.02%, 7/01/34 ........................................................ 3,180,000 3,180,000 -------------- TOTAL SHORT TERM INVESTMENTS (COST $3,655,000) ............................................... 3,655,000 -------------- TOTAL INVESTMENTS (COST $398,584,968) 100.1% ................................................. 414,952,924 OTHER ASSETS, LESS LIABILITIES (0.1)% ........................................................ (476,441) -------------- NET ASSETS 100.0% ............................................................................ $ 414,476,483 ==============
See Selected Portfolio Abbreviations on page 169. (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 | 103 See Notes to Statements of Investments. | FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MASSACHUSETTS INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 98.7% BONDS 98.7% MASSACHUSETTS 98.7% Auburn GO, AMBAC Insured, 5.125%, 6/01/24 .................................................... $ 1,465,000 $ 1,566,319 Boston Convention Center Act of 1997 Revenue, Special Obligation, Series A, AMBAC Insured, 5.00%, 5/01/27 ............................................................................ 3,970,000 4,137,534 Boston GO, MBIA Insured, 5.00%, 2/01/21 ........................................................... 3,000,000 3,165,450 Series A, MBIA Insured, 5.00%, 2/01/22 ................................................. 2,940,000 3,097,231 Chelsea GO, State Qualified, Refunding, AMBAC Insured, 5.125%, 6/15/16 ....................... 1,750,000 1,837,273 Dudley Charlton Regional School District GO, Series B, FGIC Insured, 5.25%, 5/01/19 .......... 3,140,000 3,505,998 Foxborough Stadium Infrastructure Improvement Revenue, 5.75%, 6/01/25 ........................ 4,000,000 4,330,480 Greater Lawrence Sanitary District GO, MBIA Insured, Pre-Refunded, 5.625%, 6/15/20 ........... 1,000,000 1,083,680 Holyoke Gas and Electric Department Revenue, Series A, MBIA Insured, 5.00%, 12/01/26 ......... 9,805,000 10,257,697 Kingston GO, FGIC Insured, 5.50%, 11/15/19 ................................................... 2,055,000 2,208,118 Lawrence GO, AMBAC Insured, 5.00%, 2/01/21 ................................................... 1,000,000 1,048,970 Lowell GO, FGIC Insured, Pre-Refunded, 5.85%, 2/15/20 ............................................. 1,595,000 1,757,674 State Qualified, AMBAC Insured, 5.00%, 2/01/21 ......................................... 1,330,000 1,417,514 State Qualified, AMBAC Insured, 5.00%, 2/01/22 ......................................... 1,405,000 1,493,262 Ludlow GO, School Project, Ltd. Tax, MBIA Insured, 7.30%, 11/01/07 ........................................................................ 210,000 225,181 7.30%, 11/01/08 ........................................................................ 210,000 233,205 7.40%, 11/01/09 ........................................................................ 210,000 240,719 Mansfield GO, Municipal Purpose Loan, FGIC Insured, Pre-Refunded, 5.125%, 8/15/17 ............ 1,685,000 1,753,411 Martha's Vineyard Land Bank Revenue, AMBAC Insured, 4.875%, 5/01/22 ........................................................................ 2,000,000 2,081,200 5.00%, 5/01/32 ......................................................................... 2,000,000 2,063,580 5.00%, 5/01/34 ......................................................................... 7,000,000 7,222,600 Massachusetts Bay Transportation Authority COP, MBIA Insured, 7.75%, 1/15/06 ................. 500,000 502,435 Massachusetts Bay Transportation Authority Revenue, General Transportation System, Series C, FGIC Insured, 5.25%, 3/01/15 ................................................. 2,000,000 2,194,640 Series D, MBIA Insured, 5.00%, 3/01/27 ................................................. 5,000,000 5,156,300 Massachusetts Bay Transportation Authority Sales Tax Revenue, Refunding, Senior Series A, FGIC Insured, 5.00%, 7/01/27 .............................................................. 5,000,000 5,382,050 Massachusetts Health and Educational Facilites Authority Revenue, Lahey Clinic Medical Center, Series B, FGIC Insured, 5.00%, 8/15/30 ............................................ 12,460,000 12,835,669 Massachusetts State College Building Authority Project Revenue, Capital Assurance, Refunding, Series A, XLCA Insured, 5.00%, 5/01/43 ................... 2,000,000 2,044,600 Refunding, Series B, XLCA Insured, 5.50%, 5/01/39 ...................................... 5,000,000 5,735,650 Series 1, MBIA Insured, ETM, 5.375%, 5/01/23 ........................................... 5,000,000 5,190,700 Series A, MBIA Insured, 5.00%, 5/01/23 ................................................. 2,000,000 2,105,020 Massachusetts State Development Finance Agency Revenue, Brandeis University, Series K, FGIC Insured, 4.75%, 10/01/28 ........................... 2,000,000 2,031,220 Holy Cross Hospital, AMBAC Insured, 5.25%, 9/01/32 ..................................... 4,175,000 4,700,966 Massachusetts/Saltonstall Redevelopment Building Corp., Series A, MBIA Insured, 5.125%, 2/01/34 ............................................................................. 22,400,000 23,462,880 MBIA Insured, 5.20%, 7/01/32 ........................................................... 2,250,000 2,376,653 Series A, AMBAC Insured, 5.375%, 1/01/42 ............................................... 4,000,000 4,305,080 Series A, GNMA Secured, 6.90%, 10/20/41 ................................................ 2,090,000 2,370,353
104 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MASSACHUSETTS INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MASSACHUSETTS (CONT.) Massachusetts State Development Finance Agency Revenue, (cont.) Western New England, Series A, Assured Guaranty, 5.00%, 9/01/33 ........................ $ 2,250,000 $ 2,302,110 Western New England College, AMBAC Insured, Pre-Refunded, 5.25%, 7/01/20 ............... 1,500,000 1,636,920 Massachusetts State GO, Consolidated Loan, Series A, FSA Insured, 5.00%, 3/01/24 ............................... 5,000,000 5,264,200 Consolidated Loan, Series C, FGIC Insured, Pre-Refunded, 5.25%, 11/01/30 ............... 9,645,000 10,468,779 Consolidated Loan, Series D, FSA Insured, ETM, 5.00%, 11/01/24 ......................... 2,500,000 2,681,350 Consolidated Loan, Series D, MBIA Insured, ETM, 5.00%, 8/01/27 ......................... 3,430,000 3,674,045 Consolidated Loan, Series D, MBIA Insured, Pre-Refunded, 5.00%, 8/01/27 ................ 965,000 1,042,499 MBIA Insured, Pre-Refunded, 5.00%, 8/01/22 ............................................. 4,100,000 4,391,715 Massachusetts State Health and Educational Facilities Authority Revenue, Bay State Medical Center, Series E, FSA Insured, Pre-Refunded, 6.00%, 7/01/26 .......... 1,500,000 1,553,475 Boston College, Series N, MBIA Insured, 5.125%, 6/01/33 ................................ 5,000,000 5,212,950 Brandeis University, Refunding, Series I, MBIA Insured, 4.75%, 10/01/20 ................ 3,000,000 3,067,230 Cable Housing and Health Services, Series A, MBIA Insured, 5.25%, 7/01/23 .............. 1,000,000 1,001,830 Catholic Health East, Series A, AMBAC Insured, 5.00%, 11/15/28 ......................... 6,575,000 6,711,234 Cooley Dickinson Hospital, Series B, AMBAC Insured, 5.50%, 11/15/18 .................... 3,500,000 3,543,225 Cooley Dickinson Hospital, Series B, AMBAC Insured, 5.50%, 11/15/25 .................... 7,720,000 7,815,342 Harvard University, Series FF, 5.125%, 7/15/37 ......................................... 8,000,000 8,292,080 New England Medical Center Hospital, Series H, FGIC Insured, 5.00%, 5/15/22 ............ 10,000,000 10,338,900 Northeastern University, Series I, MBIA Insured, 5.00%, 10/01/29 ....................... 1,250,000 1,291,088 Partners Healthcare System, Series A, MBIA Insured, 5.375%, 7/01/24 .................... 5,000,000 5,174,600 Springfield College, AMBAC Insured, 5.00%, 10/15/27 .................................... 2,500,000 2,578,575 Stonehill College, Series F, AMBAC Insured, 5.75%, 7/01/26 ............................. 1,690,000 1,731,287 Tufts University, Series I, 5.25%, 2/15/30 ............................................. 4,000,000 4,199,640 University of Massachusetts, Series C, FGIC Insured, 5.125%, 10/01/34 .................. 3,000,000 3,146,610 University of Massachusetts, Worcester Campus, Series B, FGIC Insured, 5.25%, 10/01/31 ............................................................................ 3,500,000 3,713,850 University of Massachusetts Project, Series A, FGIC Insured, Pre-Refunded, 5.875%, 10/01/29 ............................................................................ 4,000,000 4,446,160 University of Massachusetts Project, Series C, MBIA Insured, 5.25%, 10/01/31 ........... 1,500,000 1,589,760 Wellesley College, Series F, 5.125%, 7/01/39 ................................................. 7,500,000 7,729,350 Wheelock College, Series B, MBIA Insured, 5.625%, 10/01/30 ............................. 1,770,000 1,902,927 Williams College, Series F, MBIA Insured, 5.50%, 7/01/26 ............................... 2,500,000 2,554,250 Massachusetts State HFA, MFHR, Section 8 Assisted, Series A, GNMA Secured, ETM, 7.00%, 4/01/21 .................. 430,000 552,589 SFHR, Series 53, MBIA Insured, 6.15%, 12/01/29 ......................................... 85,000 87,135 SFHR, Series 57, MBIA Insured, 5.55%, 6/01/25 .......................................... 2,255,000 2,286,322 Massachusetts State HFA Housing Revenue, Rental, Series A, AMBAC Insured, 5.95%, 7/01/30 ................................................................................... 2,000,000 2,132,000 Massachusetts State Industrial Finance Agency Electrical Utility Revenue, Nantucket Electric Co., Series A, AMBAC Insured, 5.875%, 7/01/17 .................................... 4,000,000 4,128,880 Massachusetts State Industrial Finance Agency Revenue, Simons Rock College, AMBAC Insured, 5.50%, 6/01/27 ..................................... 1,560,000 1,621,979 St. Marks School Issue, MBIA Insured, 5.375%, 1/01/21 .................................. 2,665,000 2,721,924 Suffolk University, AMBAC Insured, Pre-Refunded, 5.25%, 7/01/27 ........................ 4,000,000 4,199,480 Trustees Deerfield Academy, 5.25%, 10/01/27 ............................................ 2,800,000 2,912,364
Quarterly Statements of Investments | 105 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 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.) Western New England College, AMBAC Insured, Pre-Refunded, 5.00%, 7/01/28 ............... $ 4,000,000 $ 4,113,320 WGBH Educational Foundation, Refunding, AMBAC Insured, 5.00%, 3/01/28 .................. 2,500,000 2,567,975 Worcester Polytechnical Institute, Refunding, MBIA Insured, 5.125%, 9/01/17 ............ 3,720,000 3,895,472 Worcester Polytechnical Institute, Refunding, Series II, MBIA Insured, 5.50%, 9/01/21 .. 2,000,000 2,103,760 Worcester Polytechnical Institute, Refunding, Series II, MBIA Insured, 5.125%, 9/01/27 .............................................................................. 4,000,000 4,157,440 Massachusetts State Port Authority Revenue, Series A, AMBAC Insured, 5.00%, 7/01/35 ................................................ 10,000,000 10,290,900 Series A, FSA Insured, 5.125%, 7/01/17 ................................................. 2,000,000 2,113,420 Special Facilities, Bosfuel Project, MBIA Insured, 5.625%, 7/01/19 ..................... 2,215,000 2,300,853 Special Facilities, Bosfuel Project, MBIA Insured, 5.625%, 7/01/22 ..................... 2,000,000 2,070,380 Special Facilities, Bosfuel Project, MBIA Insured, 5.75%, 7/01/29 ...................... 7,450,000 7,712,314 Special Facilities, Bosfuel Project, MBIA Insured, 5.75%, 7/01/39 ...................... 845,000 874,102 US Airways Project, MBIA Insured, 6.00%, 9/01/21 ....................................... 4,700,000 4,972,882 US Airways Project, Series A, MBIA Insured, 5.875%, 9/01/23 ............................ 4,500,000 4,658,310 Massachusetts State School Building Authority Dedicated Sales Tax Revenue, Series A, FSA Insured, 5.00%, 8/15/30 ............................................................... 20,000,000 20,761,400 Massachusetts State Special Obligation Dedicated Tax Revenue, FGIC Insured, Pre-Refunded, 5.25%, 1/01/29 ............................................. 5,000,000 5,438,200 Refunding, FGIC Insured, 5.50%, 1/01/25 ................................................ 5,615,000 6,445,908 Massachusetts State Turnpike Authority Metropolitan Highway System Revenue, Series A, MBIA Insured, 5.00%, 1/01/37 ................................................. 9,000,000 9,132,660 sub. lien, Refunding, Series B, MBIA Insured, 5.125%, 1/01/37 .......................... 10,000,000 10,197,200 sub. lien, Series B, MBIA Insured, 5.25%, 1/01/29 ...................................... 4,600,000 4,764,082 Massachusetts State Water Pollution Abatement Trust Revenue, Pool Program Bonds, Series 6, 5.50%, 8/01/30 ........................................... 2,620,000 2,825,618 Pool Program Bonds, Series 6, Pre-Refunded, 5.50%, 8/01/30 ............................. 1,075,000 1,176,695 Pool Program Bonds, Series 7, 5.125%, 2/01/31 .......................................... 4,300,000 4,460,863 Pool Program Bonds, Series 7, Pre-Refunded, 5.125%, 2/01/31 ............................ 1,700,000 1,822,519 Water Revenue Authority Program, Sub Series A, 5.75%, 8/01/29 .......................... 3,995,000 4,307,329 Water Revenue Authority Program, Sub Series A, Pre-Refunded, 5.75%, 8/01/29 ............ 1,005,000 1,095,098 Massachusetts State Water Resource Authority Revenue, Refunding, Series J, FSA Insured, 5.00%, 8/01/32 ....................................... 9,000,000 9,224,550 Series A, FGIC Insured, Pre-Refunded, 5.75%, 8/01/39 ................................... 9,275,000 10,188,216 Massachusetts State Water Resources Authority Revenue, General, Refunding, Series A, MBIA Insured, 5.00%, 8/01/34 .............................................................. 10,700,000 11,131,210 Monson GO, AMBAC Insured, 5.25%, 11/01/23 .................................................... 1,675,000 1,818,397 New Bedford GO, Municipal Purpose Loan, FGIC Insured, 5.00%, 5/01/21 ......................... 3,685,000 3,879,273 Plymouth County COP, Correctional Facility Project, Refunding, AMBAC Insured, 5.125%, 10/01/18 .................................................................................. 2,000,000 2,123,640 Route 3 North Transportation Improvement Assn. Lease Revenue, MBIA Insured, Pre-Refunded, 5.375%, 6/15/33 ........................................................................... 15,475,000 16,693,501 Salisbury GO, MBIA Insured, 5.30%, 3/15/27 ................................................... 2,795,000 3,014,967 Shrewsbury GO, Municipal Purpose Loan, 5.00%, 8/15/20 ........................................ 2,075,000 2,199,438 Springfield GO, Municipal Purpose Loan, FGIC Insured, 5.00%, 8/01/21 ........................................................... 5,000,000 5,282,750 FSA Insured, Pre-Refunded, 5.00%, 11/15/18 ............................................. 1,500,000 1,585,455
106 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MASSACHUSETTS INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MASSACHUSETTS (CONT.) Springfield Water and Sewer Commission Revenue, Series A, AMBAC Insured, 5.00%, 11/01/21 .................................................................................. $ 2,775,000 $ 2,931,038 University Building Authority Project Revenue, Refunding, Senior Series 1, AMBAC Insured, 5.25%, 11/01/23 ............................................................................... 2,155,000 2,314,793 11/01/28 ............................................................................... 5,035,000 5,366,404 University of Massachusetts Building Authority Project Revenue, Refunding, Senior Series 2004-1, AMBAC Insured, 5.25%, 11/01/29 ............................................. 3,000,000 3,204,330 Whitman Hanson Regional School District GO, Refunding, FGIC Insured, 5.00%, 6/15/21 .......... 1,960,000 2,068,153 Winthrop GO, AMBAC Insured, 5.00%, 11/01/20 .................................................. 1,230,000 1,303,812 Worcester GO, Refunding, Series E, MBIA Insured, 6.00%, 10/01/15 ............................. 1,335,000 1,372,981 -------------- TOTAL LONG TERM INVESTMENTS (COST $459,339,458) .............................................. 484,781,574 -------------- SHORT TERM INVESTMENTS 1.6% BONDS 1.6% MASSACHUSETTS 1.6% (a)Massachusetts State Health and Educational Facilities Authority Revenue, Capital Assets Program, Series D, MBIA Insured, Daily VRDN and Put, 2.94%, 1/01/35 ............................. 4,800,000 4,800,000 Series E, Daily VRDN and Put, 3.01%, 1/01/35 ........................................... 2,660,000 2,660,000 (a)Massachusetts State Water Resource Authority Revenue, Multi-Modal, Refunding, Sub Series D, Daily VRDN and Put, 3.00%, 8/01/17 ........................................................ 300,000 300,000 -------------- TOTAL SHORT TERM INVESTMENTS (COST $7,760,000) ............................................... 7,760,000 -------------- TOTAL INVESTMENTS (COST $467,099,458) 100.3% ................................................. 492,541,574 OTHER ASSETS, LESS LIABILITIES (0.3)% ........................................................ (1,267,990) -------------- NET ASSETS 100.0% ............................................................................ $ 491,273,584 ==============
See Selected Portfolio Abbreviations on page 169. (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 | 107 See Notes to Statements of Investments. | FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MICHIGAN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 99.1% BONDS 99.1% MICHIGAN 93.6% Adrian City School District GO, FSA Insured, 5.00%, 5/01/26 ................................................................................. $ 1,960,000 $ 2,041,810 5/01/29 ................................................................................. 2,125,000 2,201,606 5/01/34 ................................................................................. 6,690,000 6,907,492 Allegan Public School GO, AMBAC Insured, Pre-Refunded, 5.75%, 5/01/22 ......................... 4,165,000 4,309,692 Allendale Public School District GO, School Building and Site, FGIC Insured, 5.125%, 5/01/27 ......................................................................... 3,225,000 3,357,805 5.125%, 5/01/32 ......................................................................... 5,490,000 5,688,134 Pre-Refunded, 5.125%, 5/01/27 ........................................................... 3,225,000 3,503,995 Almont Community Schools GO, FGIC Insured, Pre-Refunded, 5.50%, 5/01/26 ....................... 1,925,000 1,943,769 Alpena Public Schools GO, MBIA Insured, Pre-Refunded, 5.625%, 5/01/22 ......................... 1,665,000 1,720,011 Anchor Bay School District GO, School Building and Site, Series I, FGIC Insured, Pre-Refunded, 6.00%, 5/01/29 .................................... 2,000,000 2,169,160 Series II, FGIC Insured, Pre-Refunded, 5.70%, 5/01/25 ................................... 5,000,000 5,458,100 Series II, FGIC Insured, Pre-Refunded, 5.75%, 5/01/30 ................................... 3,750,000 4,101,187 Avondale School District GO, AMBAC Insured, Pre-Refunded, 5.75%, 5/01/22 ............................................. 4,000,000 4,138,960 School Building and Site, FSA Insured, 5.00%, 5/01/29 ................................... 9,000,000 9,291,780 Birmingham City School District GO, School Building and Site, FSA Insured, 5.00%, 11/01/33 ................................................................................... 2,590,000 2,682,126 Brandon School District GO, FGIC Insured, Pre-Refunded, 5.875%, 5/01/26 ....................... 7,000,000 7,147,910 Brown City Community School District GO, Building and Site, FGIC Insured, 5.00%, 5/01/31 .......................................................................... 3,200,000 3,280,352 Pre-Refunded, 5.00%, 5/01/26 ............................................................ 4,445,000 4,785,531 Caledonia Community Schools GO, MBIA Insured, Pre-Refunded, 5.85%, 5/01/22 .................... 4,500,000 4,662,450 Carmen-Ainsworth Community School District GO, FGIC Insured, 5.00%, 5/01/27 ................... 2,950,000 3,042,778 Central Michigan University Revenue, FGIC Insured, 5.00%, 10/01/27 ........................................................... 500,000 508,780 FGIC Insured, Pre-Refunded, 5.625%, 10/01/22 ............................................ 2,500,000 2,600,075 General, AMBAC Insured, 5.00%, 10/01/34 ................................................. 8,905,000 9,240,451 Series A, AMBAC Insured, 5.05%, 10/01/32 ................................................ 10,000,000 10,345,300 Central Montcalm Public School GO, MBIA Insured, Pre-Refunded, 6.00%, 5/01/29 ................. 1,400,000 1,518,412 Charles Stewart Mott Community College GO, FGIC Insured, Pre-Refunded, 5.50%, 5/01/21 .................................................................................... 3,550,000 3,846,460 Charlotte Public School District GO, FGIC Insured, Pre-Refunded, 5.375%, 5/01/29 .............. 5,000,000 5,323,150 De Witt Public Schools GO, AMBAC Insured, Pre-Refunded, 5.70%, 5/01/21 ........................ 6,905,000 7,140,184 Dearborn EDC Hospital Revenue, Oakwood Obligation Group, Refunding, Series A, MBIA Insured, 5.25%, 8/15/21 ....................................... 1,000,000 1,014,600 Series A, FGIC Insured, 5.75%, 11/15/15 ................................................. 100,000 102,251 Detroit City School District GO, School Building and Site Improvements, Series A, FGIC Insured, Pre-Refunded, 5.00%, 5/01/23 .............................................................................. 2,650,000 2,860,596 School Building and Site Improvements, Series B, FGIC Insured, 5.00%, 5/01/25 ........... 2,000,000 2,071,220 Series A, FSA Insured, Pre-Refunded, 5.125%, 5/01/31 .................................... 38,330,000 41,532,088 Detroit Public Improvements GO, Series A-1, MBIA Insured, 5.00%, 4/01/20 ...................... 10,610,000 11,043,737 Detroit Sewage Disposal Revenue, Series A, MBIA Insured, 5.00%, 7/01/27 .......................................................................... 22,000,000 22,582,120 Pre-Refunded, 5.50%, 7/01/20 ............................................................ 215,000 224,497
108 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MICHIGAN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MICHIGAN (CONT.) Detroit Water Supply System Revenue, FGIC Insured, ETM, 6.25%, 7/01/12 ....................................................... $ 1,455,000 $ 1,593,196 second lien, Series B, FGIC Insured, 5.50%, 7/01/33 ..................................... 20,000,000 21,499,600 senior lien, Series A, FGIC Insured, 5.00%, 7/01/30 ..................................... 11,400,000 11,694,690 senior lien, Series A, FGIC Insured, 5.25%, 7/01/33 ..................................... 4,745,000 4,968,489 senior lien, Series A, FGIC Insured, Pre-Refunded, 5.875%, 7/01/29 ...................... 1,500,000 1,647,690 senior lien, Series A, FGIC Insured, Pre-Refunded, 5.25%, 7/01/33 ....................... 4,880,000 5,283,137 senior lien, Series A, MBIA Insured, 5.00%, 7/01/27 ..................................... 4,930,000 5,060,448 senior lien, Series A, MBIA Insured, Pre-Refunded, 5.00%, 7/01/27 ....................... 820,000 849,340 Series B, MBIA Insured, 5.00%, 7/01/34 .................................................. 14,145,000 14,612,492 Detroit/Wayne County Stadium Authority Revenue, FGIC Insured, 5.25%, 2/01/27 .................. 5,500,000 5,709,000 East Detroit School District GO, FGIC Insured, 6.10%, 5/01/16 .......................................................................... 1,025,000 1,046,689 Pre-Refunded, 6.10%, 5/01/16 ............................................................ 4,975,000 5,084,599 East Grand Rapids Public School District GO, FSA Insured, Pre-Refunded, 6.00%, 5/01/29 .................................................................................... 4,775,000 5,178,869 Eastern Michigan University Revenues, Refunding, Series A, FGIC Insured, 5.00%, 6/01/28 ................................................................................. 6,730,000 6,937,553 6/01/33 ................................................................................. 14,700,000 15,153,348 Eaton Rapids Public Schools GO, School Building and Site, FSA Insured, 5.00%, 5/01/26 ................................................................................. 2,700,000 2,812,698 5/01/29 ................................................................................. 2,750,000 2,839,403 Ecorse Public School District GO, FGIC Insured, Pre-Refunded, 5.50%, 5/01/17 .................. 5,000,000 5,297,250 Farmington Hills EDC Revenue, Botsford Continuing Care, Series A, MBIA Insured, 5.75%, 2/15/25 .................................................................................... 100,000 101,586 Fennville Public Schools GO, School Building and Site, FGIC Insured, 5.00%, 5/01/30 ................................................................................. 3,200,000 3,306,304 5/01/34 ................................................................................. 3,250,000 3,348,768 Ferris State University Revenue, AMBAC Insured, Pre-Refunded, 5.75%, 10/01/17 ............................................ 2,500,000 2,605,725 AMBAC Insured, Pre-Refunded, 5.85%, 10/01/22 ............................................ 2,500,000 2,608,950 AMBAC Insured, Pre-Refunded, 5.90%, 10/01/26 ............................................ 6,840,000 7,142,465 FGIC Insured, 5.25%, 10/01/26 ........................................................... 1,500,000 1,570,680 FGIC Insured, 5.25%, 10/01/31 ........................................................... 3,255,000 3,378,560 Fowlerville Community School District GO, FGIC Insured, 5.00%, 5/01/30 ................................................................................. 1,990,000 2,060,327 5/01/34 ................................................................................. 8,145,000 8,421,278 Genesee County GO, Water Supply System, AMBAC Insured, 5.00%, 11/01/30 ........................ 4,000,000 4,154,160 Gladstone Area Public Schools GO, AMBAC Insured, Pre-Refunded, 5.50%, 5/01/26 ................. 1,500,000 1,546,995 Grand Blanc Community Schools GO, School Building and Site, FSA Insured, 5.00%, 5/01/28 .................................................................................... 4,250,000 4,409,247 Grand Rapids Building Authority GO, AMBAC Insured, 5.50%, 8/01/20 ............................. 2,000,000 2,133,180 Grand Rapids Building Authority Revenue, AMBAC Insured, Series A, 5.00%, 10/01/28 ......................................................................... 3,590,000 3,749,791 Pre-Refunded, 5.00%, 10/01/28 ........................................................... 2,410,000 2,607,813 Grand Rapids Downtown Development Authority Tax Increment Revenue, MBIA Insured, 6.875%, 6/01/24 ............................................................................ 7,500,000 7,588,725
Quarterly Statements of Investments | 109 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MICHIGAN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MICHIGAN (CONT.) Grand Rapids Sanitation Sewer System Revenue, MBIA Insured, 5.00%, 1/01/30 ................................................................................. $ 5,500,000 $ 5,742,220 1/01/34 ................................................................................. 6,795,000 7,072,780 Grosselle Township School District GO, FGIC Insured, Pre-Refunded, 6.00%, 5/01/22 ............. 5,250,000 5,450,287 Hamilton Community School District GO, FGIC Insured, 5.00%, 5/01/24 ........................... 2,000,000 2,038,460 Hancock Hospital Finance Authority Revenue, Portage Health, MBIA Insured, 5.45%, 8/01/47 .................................................................................... 4,400,000 4,534,332 Hartland Consolidated School District GO, FGIC Insured, Pre-Refunded, 6.00%, 5/01/29 .......... 30,000,000 33,113,700 Haslett Public School District GO, MBIA Insured, Pre-Refunded, 5.70%, 5/01/26 ................. 3,900,000 4,032,834 Hazel Park Building Authority Revenue, Ice Arena, AMBAC Insured, 4.70%, 4/01/24 ............... 700,000 702,625 Hazel Park School District GO, FSA Insured, 5.00%, 5/01/27 ................................................................................. 9,000,000 9,283,050 5/01/32 ................................................................................. 12,475,000 12,818,312 Hopkins Public Schools GO, FGIC Insured, Pre-Refunded, 5.70%, 5/01/21 .......................................................................... 2,025,000 2,093,972 5.50%, 5/01/26 .......................................................................... 1,000,000 1,031,330 Howell Public Schools GO, MBIA Insured, Pre-Refunded, 5.875%, 5/01/22 ......................................................................... 2,000,000 2,161,180 6.00%, 5/01/25 .......................................................................... 1,600,000 1,661,040 Huron School District GO, FSA Insured, 5.25%, 5/01/21 .......................................................................... 1,500,000 1,585,050 5.375%, 5/01/26 ......................................................................... 2,500,000 2,649,325 Huron Valley School District GO, FGIC Insured, Pre-Refunded, 5.875%, 5/01/16 ......................................................................... 100,000 103,645 5.75%, 5/01/22 .......................................................................... 2,450,000 2,535,113 Jackson Brownfield RDAR, FGIC Insured, 5.125%, 6/01/22 ......................................................................... 2,290,000 2,407,889 5.125%, 6/01/24 ......................................................................... 1,215,000 1,275,434 5.25%, 6/01/26 .......................................................................... 2,820,000 2,978,456 5.375%, 6/01/30 ......................................................................... 5,830,000 6,215,538 Jackson Public Schools GO, School Building and Site, Refunding, FSA Insured, 5.00%, 5/01/34 .................................................................................... 6,620,000 6,821,182 Jenison Public Schools GO, FGIC Insured, Pre-Refunded, 5.75%, 5/01/16 ......................... 130,000 132,682 Kalamazoo City School District GO, Building and Site, FSA Insured, 5.00%, 5/01/21 ............. 4,000,000 4,147,280 Kalamazoo Hospital Finance Authority Hospital Facility Revenue, Borgess Medical Center, Series A, AMBAC Insured, ETM, 5.625%, 6/01/14 ................... 3,805,000 3,910,170 Bronson Methodist Hospital, MBIA Insured, Pre-Refunded, 5.50%, 5/15/28 .................. 10,000,000 10,614,400 Bronson Methodist Hospital, Refunding, MBIA Insured, 5.25%, 5/15/18 ..................... 250,000 261,855 Bronson Methodist Hospital, Refunding and Improvement, MBIA Insured, 5.875%, 5/15/26 .............................................................................. 26,165,000 27,004,373 Kenowa Hills Public Schools GO, MBIA Insured, Pre-Refunded, 5.875%, 5/01/21 ................................................................................. 1,510,000 1,526,988 5/01/26 ................................................................................. 7,000,000 7,078,750 Kent County Building Authority GO, Pre-Refunded, 5.00%, 6/01/26 ............................... 21,885,000 22,788,194 Lake Shore Public Schools GO, Macomb County, FSA Insured, Pre-Refunded, 5.50%, 5/01/20 .................................................................................... 2,000,000 2,062,660 Lake St. Clair Shores Drain District GO, Series A, MBIA Insured, 5.125%, 10/01/29 ............. 1,000,000 1,042,600
110 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 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 $ 3,459,075 Lakeview Community Schools GO, FGIC Insured, Pre-Refunded, 5.75%, 5/01/16 ..................... 100,000 103,474 Lakewood Public Schools GO, MBIA Insured, Pre-Refunded, 5.75%, 5/01/22 ........................ 800,000 808,600 Lansing Building Authority Revenue, Refunding, MBIA Insured, 5.60%, 6/01/19 ................... 1,240,000 1,254,012 Lenawee County Hospital Finance Authority Hospital Revenue, Lenawee Health Alliance, Refunding, Series A, AMBAC Insured, 5.20%, 7/01/19 ......................................... 2,115,000 2,220,602 Lincoln Consolidated School District GO, FSA Insured, 5.00%, 5/01/28 .......................... 1,000,000 1,012,150 Lincoln Park School District GO, FGIC Insured, Pre-Refunded, 5.90%, 5/01/26 .............................................. 6,050,000 6,178,441 Refunding, FGIC Insured, 5.00%, 5/01/26 ................................................. 900,000 921,447 Livonia Municipal Building Authority GO, FGIC Insured, 5.25%, 5/01/30 ......................... 3,950,000 4,145,841 Lowell Area Schools GO, FGIC Insured, Pre-Refunded, 5.625%, 5/01/25 ................................................................................. 3,125,000 3,401,812 5/01/30 ................................................................................. 3,250,000 3,537,885 Marquette City Hospital Finance Authority Revenue, Marquette General Hospital, Series D, FSA Insured, Pre-Refunded, 5.875%, 4/01/11 ......................................................................... 4,525,000 4,654,958 6.10%, 4/01/19 .......................................................................... 5,225,000 5,378,772 Mayville Community Schools GO, School Building and Site, FGIC Insured, 5.00%, 5/01/34 .................................................................................... 3,880,000 4,018,012 Mendon Community Schools GO, School Building and Site, FGIC Insured, 5.00%, 5/01/34 .................................................................................... 2,500,000 2,584,800 Merrill Community School District GO, FGIC Insured, Pre-Refunded, 5.60%, 5/01/26 .............. 4,000,000 4,130,800 Michigan Higher Education Student Loan Authority Revenue, Series XVII-E, AMBAC Insured, 5.40%, 6/01/19 .......................................................................... 5,000,000 5,174,250 5.50%, 6/01/25 .......................................................................... 5,000,000 5,196,300 Michigan Municipal Bond Authority Revenue, Clean Water State Revolving Fund, 5.00%, 10/01/24 ....................................... 11,355,000 11,874,605 Local Government Loan Program, Series C, MBIA Insured, 6.00%, 11/01/10 .................. 3,790,000 3,835,025 Michigan State Building Authority Revenue, Facilities Program, Refunding, Series I, FSA Insured, 4.75%, 10/15/18 ................... 3,000,000 3,055,950 Facilities Program, Refunding, Series I, FSA Insured, 5.00%, 10/15/24 ................... 5,000,000 5,166,300 Facilities Program, Refunding, Series III, FSA Insured, 5.00%, 10/15/26 ................. 14,000,000 14,492,100 Refunding, AMBAC Insured, 5.00%, 10/15/33 ............................................... 16,000,000 16,604,800 Michigan State COP, AMBAC Insured, Pre-Refunded, 5.50%, 6/01/27 ............................... 12,000,000 12,999,360 Michigan State HDA Rental Housing Revenue, Refunding, Series A, AMBAC Insured, 6.00%, 4/01/16 .................................................................................... 200,000 210,082 Michigan State Hospital Finance Authority Revenue, Ascension Health Credit, Series A, MBIA Insured, Pre-Refunded, 6.125%, 11/15/23 ......... 15,175,000 16,774,597 Detroit Medical Center Obligation Group, Refunding, Series A, AMBAC Insured, 5.50%, 8/15/24 .............................................................................. 15,000,000 15,735,750 Detroit Medical Center Obligation Group, Refunding, Series A, AMBAC Insured, 5.25%, 8/15/27 .............................................................................. 10,000,000 10,272,500 Mercy Health Services, Series Q, AMBAC Insured, ETM, 5.375%, 8/15/26 .................... 6,000,000 6,103,980 Mercy Health Services, Series R, AMBAC Insured, ETM, 5.375%, 8/15/26 .................... 1,750,000 1,780,328 Mercy Health Services, Series T, MBIA Insured, Pre-Refunded, 5.75%, 8/15/15 ............. 10,525,000 11,059,880
Quarterly Statements of Investments | 111 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 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 Health Services, Series U, ETM, 5.75%, 8/15/26 .................................... $ 300,000 $ 307,083 Mercy Health Services, Series W, FSA Insured, ETM, 5.25%, 8/15/27 ....................... 8,605,000 8,791,212 Mercy Health Services, Series X, MBIA Insured, 6.00%, 8/15/34 ........................... 7,320,000 8,018,328 Mercy Health Services, Series X, MBIA Insured, Pre-Refunded, 6.00%, 8/15/34 ............. 3,680,000 4,031,072 Mercy Mount Clemens Corp., Refunding, Series A, MBIA Insured, 5.75%, 5/15/29 ............ 4,890,000 5,226,530 Mid-Michigan Health, AMBAC Insured, 5.00%, 4/15/24 ...................................... 7,065,000 7,297,580 Mid-Michigan Health, AMBAC Insured, 5.00%, 4/15/32 ...................................... 1,000,000 1,023,450 Mid-Michigan Obligation Group, Refunding, Series A, FSA Insured, 5.375%, 6/01/27 ........ 7,500,000 7,872,225 Oakwood Obligation Group, Refunding, Series A, FSA Insured, 5.125%, 8/15/25 ............. 7,500,000 7,718,400 Sparrow Obligation Group, MBIA Insured, Pre-Refunded, 5.90%, 11/15/26 ................... 100,000 104,479 St. John's Hospital, Refunding, Series A, AMBAC Insured, ETM, 6.00%, 5/15/13 ............ 3,445,000 3,652,802 St. John's Hospital, Refunding, Series A, AMBAC Insured, ETM, 6.25%, 5/15/14 ............ 9,545,000 10,340,576 St. John's Hospital, Series A, AMBAC Insured, ETM, 5.125%, 5/15/17 ...................... 14,500,000 15,104,070 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 5,802,600 Series BB, AMBAC Insured, 7.00%, 5/01/21 ................................................ 3,000,000 3,861,960 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 12,827,204 Michigan State Trunk Line Revenue, Refunding, Series A, MBIA Insured, 4.75%, 11/01/20 ...................................... 3,300,000 3,372,237 Refunding, Series A, MBIA Insured, 5.00%, 11/01/26 ...................................... 3,050,000 3,164,223 Series A, FSA Insured, Pre-Refunded, 5.00%, 11/01/25 .................................... 16,265,000 17,376,875 Series A, FSA Insured, Pre-Refunded, 5.25%, 11/01/30 .................................... 34,680,000 37,507,114 Michigan Technological University Revenue, General, Series A, MBIA Insured, 5.00%, 10/01/34 ................................................................................... 3,675,000 3,787,455 Milan Area Schools GO, Series A, FGIC Insured, Pre-Refunded, 5.75%, 5/01/24 ................... 3,500,000 3,820,285 North Branch Area Schools GO, School Building and Site, MBIA Insured, 5.00%, 5/01/35 .................................................................................... 2,260,000 2,342,264 Northview Public Schools District GO, MBIA Insured, 5.80%, 5/01/21 ............................................................ 235,000 239,594 Refunding, FGIC Insured, 5.00%, 5/01/21 ................................................. 3,450,000 3,533,835 Oakridge Public Schools GO, FSA Insured, Pre-Refunded, 5.00%, 5/01/23 .......................................................................... 500,000 519,955 5.125%, 5/01/28 ......................................................................... 500,000 521,390 Otsego Public Schools District GO, School Building and Site, FSA Insured, 5.00%, 5/01/34 .................................................................................... 5,000,000 5,169,600 Ovid Elsie Area Schools GO, School Building and Site, MBIA Insured, 5.00%, 5/01/32 ............ 7,775,000 8,003,196 Oxford Area Community School District GO, FSA Insured, 5.00%, 5/01/26 ................................................................................. 5,425,000 5,592,470 5/01/31 ................................................................................. 4,865,000 4,987,160 Pennfield Schools District GO, School Building and Site, FGIC Insured, 5.00%, 5/01/29 ................................................................................. 1,150,000 1,191,458 5/01/34 ................................................................................. 3,610,000 3,732,451 Pinckney Community Schools GO, Refunding, FSA Insured, 5.00%, 5/01/26 ......................... 2,955,000 3,078,342
112 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MICHIGAN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MICHIGAN (CONT.) Pontiac General Building Authority GO, FGIC Insured, 5.375%, 6/01/23 ................................................................................. $ 1,620,000 $ 1,737,580 6/01/27 ................................................................................. 2,635,000 2,813,890 Port Huron GO, Ltd. Tax, AMBAC Insured, 5.00%, 10/01/22 ....................................... 1,600,000 1,658,720 Redford USD, GO, FGIC Insured, Pre-Refunded, 6.00%, 5/01/22 ................................... 14,090,000 14,394,767 River Rouge School District GO, Refunding, FGIC Insured, 5.00%, 5/01/22 ....................... 6,575,000 6,855,161 Rockford Public Schools GO, FGIC Insured, Pre-Refunded, 5.25%, 5/01/22 ................................................................................. 1,250,000 1,284,913 5/01/27 ................................................................................. 3,000,000 3,083,790 Royal Oak Hospital Finance Authority Revenue, William Beaumont Hospital, Series M, MBIA Insured, 5.25%, 11/15/31 ................................................................................ 12,750,000 13,216,650 11/15/35 ................................................................................ 17,600,000 18,133,280 Saginaw City School District GO, School Building and Site, FSA Insured, 5.00%, 5/01/34 .................................................................................... 2,100,000 2,169,762 Saginaw Hospital Finance Authority Revenue, Covenant Medical Center, Refunding, Series E, MBIA Insured, 5.375%, 7/01/19 ......................................................................... 4,850,000 5,145,171 5.50%, 7/01/24 .......................................................................... 1,750,000 1,837,973 Saginaw Valley State University Revenue, Refunding, AMBAC Insured, 5.25%, 7/01/19 ................................................ 2,540,000 2,675,484 Series A, MBIA Insured, 5.125%, 7/01/30 ................................................. 4,315,000 4,446,737 Schoolcraft Community School District GO, FGIC Insured, Pre-Refunded, 5.75%, 5/01/21 .......................................................................... 3,575,000 3,699,196 5.375%, 5/01/26 ......................................................................... 1,000,000 1,029,630 South Macomb Disposal Authority Revenue, AMBAC Insured, 5.25%, 9/01/20 ........................ 2,000,000 2,098,020 South Redford School District GO, FGIC Insured, Pre-Refunded, 5.50%, 5/01/22 .............................................. 3,155,000 3,253,846 School Building and Site, MBIA Insured, 5.00%, 5/01/30 .................................. 3,175,000 3,300,444 Southfield Library Building Authority GO, Refunding, MBIA Insured, 5.00%, 5/01/30 ............. 6,535,000 6,772,874 Sparta Area Schools GO, School Building and Site, FGIC Insured, 5.00%, 5/01/30 ................ 2,730,000 2,826,478 St. Clair County Building Authority GO, MBIA Insured, Pre-Refunded, 5.25%, 4/01/18 ................................................................................. 2,065,000 2,099,754 4/01/21 ................................................................................. 2,400,000 2,440,392 St. Clair County EDC, PCR, The Detroit Edison Co., Refunding, Series AA, AMBAC Insured, 6.40%, 8/01/24 ............................................................................. 10,000,000 10,897,800 Taylor Brownfield RDA, GO, Tax Increment, Series A, MBIA Insured, 5.00%, 5/01/29 ................................................................................. 2,900,000 2,996,599 5/01/34 ................................................................................. 3,945,000 4,061,180 Taylor Tax Increment Finance Authority Revenue, FSA Insured, 5.00%, 5/01/21 ................... 2,595,000 2,690,548 Tecumseh Public Schools GO, FGIC Insured, Pre-Refunded, 5.50%, 5/01/25 ................................................................................. 5,925,000 6,419,797 5/01/30 ................................................................................. 4,500,000 4,875,795 Thornapple Kellogg School GO, School Building and Site, Refunding, FSA Insured, 5.00%, 5/01/23 ................................................................................. 4,000,000 4,163,160 5/01/28 ................................................................................. 6,250,000 6,448,437
Quarterly Statements of Investments | 113 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MICHIGAN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MICHIGAN (CONT.) Three Rivers Community Schools GO, Building and Site, MBIA Insured, Pre-Refunded, 6.00%, 5/01/23 ............................................................................. $ 2,400,000 $ 2,451,912 Warren Consolidated School District GO, FSA Insured, 4.875%, 5/01/22 ......................................................................... 11,850,000 12,189,147 5.00%, 5/01/26 .......................................................................... 14,450,000 14,896,071 Warren Water and Sewer Revenue, FSA Insured, Pre-Refunded, 5.125%, 11/01/23 ................... 2,450,000 2,653,865 Wayne Charter County Airport Hotel GO, Detroit Metropolitan Airport, Series A, MBIA Insured, 5.25%, 12/01/25 ......................................................................... 17,000,000 17,934,490 5.00%, 12/01/30 ......................................................................... 10,750,000 11,023,802 Wayne Charter County Airport Revenue, Detroit Metropolitan Wayne County, Series A, MBIA Insured, 5.25%, 12/01/18 .............................................................. 5,500,000 5,713,895 Wayne State University Revenue, FGIC Insured, 5.125%, 11/15/29 ................................ 17,900,000 18,696,013 West Bloomfield School District GO, FGIC Insured, Pre-Refunded, 6.00%, 5/01/19 ................................................................................. 2,100,000 2,317,959 5/01/20 ................................................................................. 2,000,000 2,207,580 West Branch Rose City Area School District GO, FGIC Insured, 5.50%, 5/01/24 ................... 1,400,000 1,496,068 West Ottawa Public School District GO, FGIC Insured, 5.60%, 5/01/21 ............................................................ 695,000 714,821 FGIC Insured, 5.60%, 5/01/26 ............................................................ 3,575,000 3,676,959 FGIC Insured, Pre-Refunded, 5.60%, 5/01/26 .............................................. 6,000,000 6,196,200 School Building Site, Refunding, MBIA Insured, 5.00%, 5/01/32 ........................... 6,025,000 6,201,834 Western Townships Utilities Authority GO, Sewer Disposal System, FGIC Insured, 4.75%, 1/01/23 .................................................................................... 8,500,000 8,673,655 Whitmore Lake Public School District GO, FGIC Insured, 5.00%, 5/01/32 ......................... 9,375,000 9,655,125 Willow Run Community Schools GO, FSA Insured, 5.00%, 5/01/31 .................................. 12,550,000 12,841,536 Wyoming Public Schools GO, FGIC Insured, Pre-Refunded, 5.125%, 5/01/23 ........................ 5,750,000 5,995,985 Wyoming Sewer Disposal System Revenue, Refunding, MBIA Insured, 5.00%, 6/01/27 ................ 5,700,000 5,922,585 Ypsilanti Community Utilities GO, Sanitation Sewer System No. 3, FGIC Insured, 5.00%, 5/01/32 .................................................................................... 6,065,000 6,225,116 Ypsilanti School District GO, FGIC Insured, Pre-Refunded, 5.75%, 5/01/20 .......................................................................... 4,700,000 4,863,278 5.375%, 5/01/26 ......................................................................... 6,750,000 6,950,002 Ypsilanti Water and Sewer Disposal System Revenue, Series C, AMBAC Insured, 5.00%, 9/01/27 .................................................................................... 2,115,000 2,184,435 -------------- 1,300,545,444 -------------- U.S. TERRITORIES 5.5% Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Refunding, Series D, FSA Insured, 5.00%, 7/01/32 ........................................ 20,000,000 20,689,400 Series B, MBIA Insured, Pre-Refunded, 5.875%, 7/01/35 ................................... 25,000,000 27,779,500 Puerto Rico Electric Power Authority Power Revenue, Series RR, FGIC Insured, 5.00%, 7/01/35 .................................................................................... 19,000,000 19,806,740 Puerto Rico Port Authority Revenue, Series D, FGIC Insured, 7.00%, 7/01/14 .................... 8,700,000 8,726,796 -------------- 77,002,436 -------------- TOTAL LONG TERM INVESTMENTS (COST $1,302,585,451) ............................................. 1,377,547,880 --------------
114 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MICHIGAN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM INVESTMENTS 0.2% BONDS 0.2% MICHIGAN 0.2% (a)Detroit Sewage Disposal Revenue, senior lien, Series B, FSA Insured, Daily VRDN and Put, 3.00%, 7/01/33 ............................................................................. $ 2,740,000 $ 2,740,000 (a)Michigan State University Revenues, Series A, Daily VRDN and Put, 3.00%, 8/15/32 .............. 600,000 600,000 -------------- TOTAL SHORT TERM INVESTMENTS (COST $3,340,000) ................................................ 3,340,000 -------------- TOTAL INVESTMENTS (COST $1,305,925,451) 99.3% ................................................. 1,380,887,880 OTHER ASSETS, LESS LIABILITIES 0.7% ........................................................... 9,424,330 -------------- NET ASSETS 100.0% ............................................................................. $1,390,312,210 ==============
See Selected Portfolio Abbreviations on page 169. (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 | 115 See Notes to Statements of Investments. | FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MINNESOTA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 98.6% BONDS 94.0% MINNESOTA 91.1% Anoka County Housing and RDA, GO, Housing Development, AMBAC Insured, 4.875%, 2/01/24 ......................................................................... $ 2,195,000 $ 2,275,688 5.00%, 2/01/34 .......................................................................... 2,000,000 2,063,380 Anoka-Hennepin ISD No. 11 GO, School District Credit Enhancement Program, Series A, FSA Insured, 5.00%, 2/01/20 ................................................................ 6,130,000 6,392,425 Bemidji Health Care Facilities First Mortgage Revenue, North Country Health Services, Radian Insured, 5.00%, 9/01/24 ............................................................. 2,000,000 2,062,140 Bemidji ISD No. 031 GO, Refunding, Series A, FSA Insured, 4.50%, 4/01/19 ...................... 3,550,000 3,618,586 Bemidji Lease Revenue, Minnesota State Bureau of Criminal Apprehension, MBIA Insured, 5.70%, 12/01/17 ............................................................................ 120,000 127,535 Big Lake ISD No. 727 GO, MBIA Insured, 5.70%, 2/01/21 ......................................... 3,085,000 3,165,981 Bloomington ISD No. 271 GO, Series A, FSA Insured, 5.125%, 2/01/24 ............................ 2,000,000 2,099,320 Bloomington Port Authority Lease Revenue, City Hall Lease Obligation, 5.00%, 2/01/18 .......... 1,045,000 1,089,736 Brooklyn Center ISD No. 286 GO, FGIC Insured, 5.00%, 2/01/22 .................................. 1,000,000 1,044,050 Buffalo GO, AMBAC Insured, 5.55%, 6/01/17 ..................................................... 1,000,000 1,011,160 Buffalo ISD No. 877 GO, Refunding, MBIA Insured, 5.00%, 2/01/22 ............................... 4,255,000 4,395,032 Burnsville MFR, Coventry Court, Refunding, Series A, GNMA Secured, 5.90%, 9/20/19 .......................................................................... 400,000 423,312 5.95%, 9/20/29 .......................................................................... 1,275,000 1,341,683 6.00%, 9/20/34 .......................................................................... 1,000,000 1,053,130 Byron ISD No. 531 GO, School Building, Series A, FGIC Insured, 5.00%, 2/01/24 ................. 2,215,000 2,325,949 Cambridge ISD No. 911 GO, Series A, MBIA Insured, 4.125%, 2/01/22 ......................................................................... 1,410,000 1,365,430 4.25%, 2/01/24 .......................................................................... 1,235,000 1,199,901 4.75%, 2/01/30 .......................................................................... 2,500,000 2,533,225 Cass Lake ISD No. 115 GO, Refunding, FGIC Insured, 5.00%, 2/01/22 ............................. 3,805,000 3,996,049 Centennial ISD No. 012 GO, Series A, FSA Insured, 5.00%, 2/01/21 .............................. 1,000,000 1,045,150 Champlin EDA, GO, Housing Development, MBIA Insured, 5.625%, 2/01/26 .......................... 250,000 250,903 Chanhassen Apartments Project GO, Series B, AMBAC Insured, Pre-Refunded, 6.20%, 1/01/25 .................................................................................... 2,975,000 2,981,456 Cohasset PCR, Collateral Allete Project, Refunding, Radian Insured, 4.95%, 7/01/22 ............ 3,010,000 3,060,357 Columbia Heights ISD No. 013 GO, FSA Insured, 5.50%, 2/01/23 .................................. 4,500,000 4,608,045 Dakota County Housing and RDA, SFMR, GNMA Secured, 5.75%, 4/01/18 .......................................................................... 267,000 273,216 5.85%, 10/01/30 ......................................................................... 453,000 462,894 Deer River ISD No. 317 GO, FSA Insured, 6.00%, 2/01/25 ........................................ 1,325,000 1,444,515 Eagan GO, Recreational Facilities, Series A, MBIA Insured, 5.00%, 2/01/21 ..................... 3,075,000 3,213,836 Eagan MFHR, Forest Ridge Apartments, Refunding, Series A, GNMA Secured, 5.95%, 9/20/29 .......................................................................... 1,700,000 1,788,213 6.00%, 9/20/34 .......................................................................... 1,480,000 1,555,776 Eden Prairie MFHR, Olympic Ridge, Refunding, Series A, GNMA Secured, 6.25%, 1/20/31 ........................ 2,000,000 2,042,560 Parkway Apartments Project, Series A, GNMA Secured, 5.80%, 2/20/32 ...................... 7,380,000 7,624,352 Eveleth EDA, GO, Housing Development, MBIA Insured, 5.80%, 7/01/25 ............................ 1,000,000 1,014,880 Farmington ISD No. 192 GO, MBIA Insured, 5.25%, 2/01/24 ....................................... 5,915,000 6,261,737 Ham Lake GO, Anoka County Housing, Senior Housing Project, Series B, MBIA Insured, 6.10%, 1/01/26 .................................................................................... 2,180,000 2,181,788
116 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MINNESOTA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MINNESOTA (CONT.) Hastings ISD No. 200 GO, Refunding, Series A, FSA Insured, 4.50%, 2/01/22 ..................... $ 2,700,000 $ 2,709,909 Hibbing Health Care Facilities Revenue, The Duluth Clinic Ltd., FSA Insured, Pre-Refunded, 5.00%, 11/01/25 ............................................................................ 8,000,000 8,672,720 Hopkins Elderly Housing Revenue, St. Therese Project, Refunding, Series A, GNMA Secured, 5.60%, 11/20/17 ......................................................................... 750,000 777,938 5.70%, 11/20/32 ......................................................................... 3,000,000 3,087,510 Hopkins ISD No. 270 GO, FGIC Insured, 5.125%, 2/01/22 ......................................... 3,880,000 4,087,735 Hubbard County Housing and RDA, GO, Heritage Center Project, MBIA Insured, 5.50%, 8/01/27 .................................................................................... 1,085,000 1,170,650 Lake Crystal Wellcome Memorial Area Schools ISD No. 2071 GO, School Building, Series B, MBIA Insured, 5.00%, 2/01/34 ............................................................... 3,285,000 3,399,482 Lake Superior ISD No. 381 GO, Series A, FSA Insured, 5.00%, 4/01/23 ........................... 4,195,000 4,401,730 Lakeview ISD No. 2167 GO, MBIA Insured, 5.25%, 2/01/26 ........................................ 3,705,000 3,968,537 Lakeville GO, Capital Improvement Plan, Series A, MBIA Insured, 4.75%, 2/01/30 ................ 2,695,000 2,730,817 Lakeville ISD No. 194 GO, Series A, FGIC Insured, 5.00%, 2/01/23 .............................. 10,180,000 10,671,898 Mahtomedi ISD No. 832 GO, FSA Insured, 5.00%, 2/01/18 ......................................... 3,240,000 3,406,050 Maple Grove HDA Municipal Facility Lease Revenue, AMBAC Insured, Pre-Refunded, 5.55%, 2/01/17 .................................................................................... 280,000 293,230 Medford ISD No. 763 GO, Series A, FSA Insured, 5.125%, 2/01/29 ................................ 2,700,000 2,795,553 Minneapolis and St. Paul Metropolitan Airports Commission Airport Revenue, Refunding, Sub Series A, AMBAC Insured, 5.00%, 1/01/28 .................................. 5,000,000 5,158,050 Series A, AMBAC Insured, 5.20%, 1/01/24 ................................................. 5,000,000 5,193,450 Series A, FGIC Insured, 5.125%, 1/01/31 ................................................. 7,000,000 7,217,560 Series A, FGIC Insured, 5.25%, 1/01/32 .................................................. 7,000,000 7,296,660 Series C, FGIC Insured, 5.25%, 1/01/26 .................................................. 2,000,000 2,105,240 Series C, FGIC Insured, 5.25%, 1/01/32 .................................................. 9,000,000 9,381,420 Minneapolis CDA and St. Paul Housing and RDAR, Health Care Facilities, Carondelet, Series B, BIG Insured, Pre-Refunded, 8.875%, 11/01/15 ................................................ 690,000 837,143 Minneapolis GO, Sports Arena Project, Refunding, 5.125%, 10/01/20 ....................................... 8,340,000 8,650,665 Sports Arena Project, Refunding, 5.20%, 10/01/24 ........................................ 3,750,000 3,875,550 Various Purpose, 5.125%, 12/01/28 ....................................................... 3,000,000 3,134,280 Minneapolis Health Care Revenue, Fairview Health Services, AMBAC Insured, 5.00%, 11/15/34 ................................................................................... 17,260,000 17,875,319 Minneapolis MFR, Riverside Plaza, Refunding, GNMA Secured, 5.20%, 12/20/30 .................... 5,000,000 5,045,450 Minneapolis Revenue, University Gateway Project, Series A, 5.25%, 12/01/24 .................... 3,000,000 3,070,410 Minneapolis Special School District No. 001 COP, Refunding, Series A, MBIA Insured, 4.50%, 2/01/21 ....................................... 2,715,000 2,736,992 Series A, FSA Insured, 5.00%, 2/01/21 ................................................... 1,950,000 2,036,970 Series A, MBIA Insured, Pre-Refunded, 5.90%, 2/01/17 .................................... 5,000,000 5,021,600 Minnesota Agriculture and Economic Development Board Revenue, Benedictine Health, Refunding, Series A, MBIA Insured, 5.125%, 2/15/29 .................. 14,625,000 15,070,477 Evangelical Lutheran Good Samaritan, Society Project, AMBAC Insured, 5.15%, 12/01/22 ............................................................................. 4,870,000 5,062,219 Evangelical Lutheran Good Samaritan, Society Project, AMBAC Insured, Pre-Refunded, 5.15%, 12/01/22 ...................................................................... 310,000 327,131
Quarterly Statements of Investments | 117 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MINNESOTA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MINNESOTA (CONT.) Minnesota Agriculture and Economic Development Board Revenue, (cont.) Health Care System, Refunding, Series A, MBIA Insured, 5.75%, 11/15/26 .................. $ 365,000 $ 386,696 Health Care System, Series A, MBIA Insured, Pre-Refunded, 5.75%, 11/15/26 ............... 17,635,000 18,800,497 Minnesota State Colleges and University Revenue, Fund, Series A, MBIA Insured, 5.00%, 10/01/32 ................................................................................... 5,540,000 5,771,018 Minnesota State HFAR, Rental Housing, Refunding, Series D, MBIA Insured, 5.90%, 8/01/15 ....................... 875,000 880,810 Rental Housing, Refunding, Series D, MBIA Insured, 5.95%, 2/01/18 ....................... 280,000 281,887 Rental Housing, Refunding, Series D, MBIA Insured, 6.00%, 2/01/22 ....................... 320,000 322,195 SFM, Series B, 5.00%, 7/01/13 ........................................................... 60,000 61,555 SFM, Series D, 5.45%, 1/01/26 ........................................................... 2,460,000 2,494,096 SFM, Series E, AMBAC Insured, 5.40%, 1/01/25 ............................................ 3,740,000 3,787,012 SFM, Series G, AMBAC Insured, 6.25%, 7/01/26 ............................................ 410,000 416,806 Minnesota State Higher Education Facilities Authority Revenue, Bethel, Mandatory Put 4/01/19, Refunding, 5.10%, 4/01/28 ................................ 7,700,000 7,807,107 St. Johns University, Series 5-I, MBIA Insured, Pre-Refunded, 5.25%, 10/01/21 ........... 1,750,000 1,905,155 St. Johns University, Series 5-I, MBIA Insured, Pre-Refunded, 5.25%, 10/01/26 ........... 1,500,000 1,632,990 University of St. Thomas, Series 4-A1, MBIA Insured, 5.625%, 10/01/16 ................... 1,000,000 1,018,820 Minnetonka MFHR, Cedar Hills Project, Refunding, Series A, GNMA Secured, 5.90%, 10/20/19 ......................................................................... 1,750,000 1,850,818 5.95%, 10/20/29 ......................................................................... 5,955,000 6,275,915 Moorhead EDA, GO, Tax Increment, Series A, MBIA Insured, 5.25%, 2/01/28 ....................... 1,890,000 1,983,706 New Hope MFR, North Ridge, Series A, GNMA Secured, Pre-Refunded, 6.05%, 1/01/17 .......................................................................... 440,000 449,200 6.20%, 1/01/31 .......................................................................... 5,470,000 5,583,667 Nobles County Housing and RDA Public Project Revenue, Annual Appropriate Lease Obligation, AMBAC Insured, Pre-Refunded, 5.625%, 2/01/22 ............................................... 1,230,000 1,333,185 North St. Paul Maplewood ISD No. 622 GO, Refunding, Series A, 5.125%, 2/01/25 ................. 2,275,000 2,305,553 Northern Municipal Power Agency Electric System Revenue, Refunding, FSA Insured, 5.00%, 1/01/12 .................................................................................... 1,030,000 1,079,347 Osseo ISD No. 279 GO, Series A, FSA Insured, 5.00%, 2/01/20 ................................... 3,000,000 3,142,080 Park Rapids ISD No. 309 GO, MBIA Insured, 4.75%, 2/01/21 ............................................................ 2,500,000 2,593,250 MBIA Insured, 5.00%, 2/01/25 ............................................................ 3,000,000 3,134,100 Refunding, Series A, FSA Insured, 4.50%, 2/01/24 ........................................ 2,255,000 2,246,566 Refunding, Series A, FSA Insured, 4.50%, 2/01/25 ........................................ 1,000,000 992,340 Pipestone-Jasper ISD No. 2689 GO, Refunding, Series 2004-A, FSA Insured, 5.00%, 3/01/20 .................................................................................... 1,595,000 1,686,409 Plymouth Health Facilities Revenue, Westhealth Project, Series A, FSA Insured, 6.25%, 6/01/16 .......................................................................... 1,600,000 1,622,224 6.125%, 6/01/24 ......................................................................... 1,815,000 1,838,668 Princeton ISD No. 477 GO, Mille Lacs County, FSA Insured, 5.125%, 2/01/24 ..................... 1,190,000 1,213,562 Prior Lake ISD No. 719 GO, FGIC Insured, 5.125%, 2/01/19 ........................................................... 1,140,000 1,206,758 FSA Insured, 5.50%, 2/01/20 ............................................................. 2,255,000 2,397,403 FSA Insured, 5.50%, 2/01/21 ............................................................. 2,590,000 2,750,476 Series C, MBIA Insured, 5.00%, 2/01/21 .................................................. 2,000,000 2,096,680 Series C, MBIA Insured, 5.00%, 2/01/23 .................................................. 6,025,000 6,298,475
118 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MINNESOTA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MINNESOTA (CONT.) Robbinsdale GO, Housing Development, Senior Housing Project, Series B, FGIC Insured, 5.875%, 1/01/31 ............................................................................ $ 2,160,000 $ 2,238,408 Robbinsdale ISD No. 281 GO, Refunding, Series A, MBIA Insured, 4.50%, 2/01/21 ................................................................................. 3,420,000 3,446,881 2/01/22 ................................................................................. 3,570,000 3,591,527 Rochester Electric Utility Revenue, AMBAC Insured, 5.25%, 12/01/24 ............................ 3,000,000 3,183,390 Rochester Health Care Facilities Revenue, Mayo Foundation, Refunding, Series B, 5.50%, 11/15/27 ................................................................................... 4,000,000 4,205,200 Rochester ISD No. 535 GO, Series A, MBIA Insured, 5.00%, 2/01/28 ................................................................................. 1,385,000 1,444,874 2/01/29 ................................................................................. 1,455,000 1,514,553 Rosemount ISD No. 196 GO, School Building, Series A, FSA Insured, 5.00%, 2/01/22 .................................. 1,330,000 1,405,012 School Building, Series A, FSA Insured, 5.00%, 2/01/23 .................................. 1,420,000 1,496,637 Series A, MBIA Insured, 4.70%, 2/01/25 .................................................. 1,000,000 1,018,610 Rush City ISD No. 139 GO, School Building, MBIA Insured, 5.00%, 2/01/21 .......................................................................... 1,680,000 1,761,211 5.125%, 2/01/26 ......................................................................... 4,245,000 4,450,585 Sartell ISD No. 748 GO, Refunding, Series A, FSA Insured, 4.125%, 8/01/20 ......................................................................... 1,785,000 1,755,030 4.25%, 2/01/22 .......................................................................... 2,810,000 2,777,488 Sauk Rapids ISD No. 47 GO, Series A, MBIA Insured, 5.75%, 2/01/23 ................................................................................. 2,740,000 2,983,860 2/01/26 ................................................................................. 5,000,000 5,437,700 Scott County GO, MBIA Insured, 5.00%, 2/01/33 ................................................. 5,555,000 5,712,706 Scott County Housing and Redevelopment Authority Facilities Lease Revenue, AMBAC Insured, 5.70%, 2/01/29 ............................................................................. 1,380,000 1,472,998 Scott County Housing and Redevelopment Authority GO, River City Center Project, Series A, FSA Insured, 5.375%, 2/01/27 ....................... 1,520,000 1,582,138 Savage City, Hamilton Apartments Project, AMBAC Insured, 5.70%, 2/01/33 ................. 2,285,000 2,344,570 Scott County Housing and Redevelopment Authority Special Benefits Tax Revenue, River City Centre Project, Series B, AMBAC Insured, 5.50%, 2/01/27 .................................... 675,000 701,480 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 1,217,830 Shakopee Public Utilities Commission Public Utilities Revenue, MBIA Insured, Pre-Refunded, 6.00%, 2/01/28 ............................................................................. 2,530,000 2,725,114 South Washington County ISD No. 833 GO, Series B, FSA Insured, 5.00%, 2/01/23 ................. 4,000,000 4,169,560 Southeastern Multi-County Housing and RDAR, Housing Development, Goodhue County Apartments B, MBIA Insured, 5.75%, 1/01/31 ................................................. 2,415,000 2,477,307 Southern Minnesota Municipal Power Agency Power Supply System Revenue, Refunding, Series A, MBIA Insured, ETM, 5.75%, 1/01/18 ................................................ 1,000,000 1,070,760 St. Clair ISD No. 75 GO, MBIA Insured, 5.70%, 4/01/22 ......................................... 2,250,000 2,404,575 St. Cloud Health Care Revenue, St. Cloud Hospital Obligation, Group A, FSA Insured, 5.875%, 5/01/30 .................................................................................... 17,785,000 19,388,851 St. Cloud Hospital Facilities Revenue, St. Cloud Hospital, Refunding, Series A, AMBAC Insured, 5.00%, 7/01/15 ............................................................................. 1,165,000 1,188,545 St. Cloud Housing and RDA Sales Tax Revenue, Paramount Theater Project, Refunding, Series A, FGIC Insured, 5.00%, 3/01/22 ..................................................... 1,000,000 1,025,470
Quarterly Statements of Investments | 119 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MINNESOTA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MINNESOTA (CONT.) St. Francis ISD No. 15 GO, Series A, FSA Insured, 6.35%, 2/01/13 .......................................................................... $ 1,500,000 $ 1,507,080 6.375%, 2/01/16 ......................................................................... 5,465,000 5,491,013 St. Michael ISD No. 885 GO, FSA Insured, 5.00%, 2/01/23 ............................................................. 3,300,000 3,439,887 School Building, Refunding, FSA Insured, 5.00%, 2/01/24 ................................. 4,535,000 4,783,427 St. Paul ISD No. 625 GO, School Building, Series B, FSA Insured, 4.25%, 2/01/21 .................................. 1,000,000 986,750 School Building, Series B, FSA Insured, 4.375%, 2/01/22 ................................. 1,065,000 1,066,938 Series C, FSA Insured, 6.00%, 2/01/20 ................................................... 1,600,000 1,714,976 St. Peter GO, Hospital, Series A, MBIA Insured, 5.00%, 9/01/32 ................................ 6,805,000 6,959,950 Upsala ISD No. 487 GO, School Building, FGIC Insured, 5.00%, 2/01/22 .......................... 1,140,000 1,197,239 Virginia Governmental Housing Project GO, Refunding, MBIA Insured, 5.90%, 2/01/26 ............. 2,915,000 2,984,756 Walker-Hakensack-Akeley ISD No. 113 GO, Series A, FSA Insured, 6.00%, 2/01/23 ................................................................................. 1,160,000 1,264,632 2/01/25 ................................................................................. 1,300,000 1,417,260 Washington County GO, Capital Improvement Plan, Series A, 4.75%, 2/01/22 ................................................................................. 3,200,000 3,301,632 2/01/23 ................................................................................. 1,760,000 1,817,006 Washington County Housing and RDAR, Government Housing, Landfall Terrace Project, Refunding, 5.35%, 2/01/22 .......................................................................... 1,000,000 1,035,930 5.40%, 8/01/27 .......................................................................... 2,015,000 2,091,610 Watertown ISD No. 111 GO, Series A, FSA Insured, 5.00%, 2/01/24 ................................................................................. 2,725,000 2,863,294 2/01/25 ................................................................................. 2,845,000 2,987,079 Western Minnesota Municipal Power Agency Revenue, MBIA Insured, 5.00%, 1/01/26 ............................................................ 8,565,000 8,932,353 Refunding, Series A, AMBAC Insured, 5.50%, 1/01/12 ...................................... 2,745,000 2,804,100 Refunding, Series A, AMBAC Insured, 5.50%, 1/01/13 ...................................... 4,500,000 4,596,885 Series A, MBIA Insured, 5.00%, 1/01/30 .................................................. 7,865,000 8,134,376 White Bear Lake ISD No. 624 GO, Series 4-A, FSA Insured, 4.00%, 2/01/19 ....................... 1,405,000 1,371,196 Willmar GO, Rice Memorial Hospital Project, FSA Insured, 5.00%, 2/01/19 ................................................................................. 2,000,000 2,109,280 2/01/22 ................................................................................. 2,550,000 2,674,823 2/01/25 ................................................................................. 3,000,000 3,131,760 2/01/32 ................................................................................. 5,415,000 5,585,464 Worthington ISD No. 518 GO, Refunding, Series A, FSA Insured, 4.25%, 2/01/22 ........................................ 5,010,000 4,952,034 Refunding, Series A, FSA Insured, 4.25%, 2/01/24 ........................................ 2,840,000 2,759,287 Series A, FSA Insured, 5.00%, 2/01/24 ................................................... 5,000,000 5,223,500 -------------- 533,689,148 -------------- U.S. TERRITORIES 2.9% Puerto Rico Commonwealth GO, Public Improvement, FSA Insured, 5.00%, 7/01/23 .......................................................................... 955,000 995,950 5.125%, 7/01/30 ......................................................................... 420,000 438,262
120 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MINNESOTA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) U.S. TERRITORIES (CONT.) Puerto Rico Commonwealth GO, Public Improvement, FSA Insured, (cont.) Pre-Refunded, 5.00%, 7/01/23 ............................................................ $ 1,545,000 $ 1,661,370 Pre-Refunded, 5.125%, 7/01/30 ........................................................... 580,000 627,322 Puerto Rico Commonwealth Infrastructure Financing Authority Special, Refunding, Series C, AMBAC Insured, 5.50%, 7/01/23 .............................................................. 5,000,000 5,734,450 Puerto Rico PBA Revenue, Guaranteed Government Facilities, Refunding, Series F, XLCA Insured, 5.25%, 7/01/25 ............................................................................. 2,500,000 2,780,325 Puerto Rico Port Authority Revenue, Series D, FGIC Insured, 7.00%, 7/01/14 .................... 1,300,000 1,304,004 Puerto Rico Public Finance Corp. Commonwealth Revenue, Series E, AMBAC Insured, 5.50%, 8/01/27 .......................................................................... 625,000 723,200 ETM, 5.50%, 8/01/27 ..................................................................... 375,000 433,920 Virgin Islands PFAR, Gross Receipts Taxes Loan Note, FSA Insured, 5.25%, 10/01/20 ................................................................................ 1,160,000 1,259,644 10/01/21 ................................................................................ 1,000,000 1,082,820 -------------- 17,041,267 -------------- TOTAL BONDS (COST $531,930,027) ............................................................... 550,730,415 -------------- ZERO COUPON BONDS 4.6% MINNESOTA 4.6% Cambridge ISD No. 911 GO, Capital Appreciation, Series B, MBIA Insured, 2/01/30 ............... 2,240,000 652,825 Southern Minnesota Municipal Power Agency Power Supply System Revenue, Capital Appreciation, Refunding, Series A, MBIA Insured, 1/01/23 ........................ 4,000,000 1,797,720 Capital Appreciation, Refunding, Series A, MBIA Insured, 1/01/26 ........................ 5,000,000 1,910,850 Capital Appreciation, Refunding, Series A, MBIA Insured, 1/01/27 ........................ 6,600,000 2,384,580 Capital Appreciation, Series A, MBIA Insured, 1/01/19 ................................... 5,875,000 3,250,285 Capital Appreciation, Series A, MBIA Insured, 1/01/20 ................................... 14,035,000 7,380,305 Series A, AMBAC Insured, 1/01/18 ........................................................ 15,985,000 9,297,036 -------------- TOTAL ZERO COUPON BONDS (COST $25,266,465) .................................................... 26,673,601 -------------- TOTAL LONG TERM INVESTMENTS (COST $557,196,492) ............................................... 577,404,016 -------------- SHORT TERM INVESTMENTS 0.1% BONDS 0.1% MINNESOTA 0.1% (a)Hennepin County GO, Refunding, Series A, Weekly VRDN and Put, 2.90%, 12/01/25 ................. 100,000 100,000 (a)Minneapolis State Revenue, Refunding, Weekly VRDN and Daily Put, 2.90%, 12/01/18 .............. 400,000 400,000 -------------- TOTAL SHORT TERM INVESTMENTS (COST $500,000) .................................................. 500,000 -------------- TOTAL INVESTMENTS (COST $557,696,492) 98.7% ................................................... 577,904,016 OTHER ASSETS, LESS LIABILITIES 1.3% ........................................................... 7,634,882 -------------- NET ASSETS 100.0% ............................................................................. $ 585,538,898 ==============
See Selected Portfolio Abbreviations on page 169. (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 | 121 See Notes to Statements of Investments. | FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MISSOURI TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 98.2% BONDS 98.2% MISSOURI 80.8% 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 $ 4,643,685 Boone County IDA Health Care Revenue, Retirement Center Project, GNMA Secured, 5.70%, 10/20/22 ................................................................................... 1,515,000 1,643,972 Branson Reorganized School District No. R-4 GO, FSA Insured, 5.00%, 3/01/24 ................... 4,500,000 4,720,275 Camdenton Reorganization School District North III Camdenton County COP, FSA Insured, 5.00%, 3/01/20 ............................................................................. 4,860,000 5,131,285 Cape Girardeau County IDA Health Care Facilities Revenue, St. Francis Medical Center, Series A, 5.50%, 6/01/27 ................................................................................. 6,350,000 6,683,946 6/01/32 ................................................................................. 5,000,000 5,250,050 Cape Girardeau County IDA Solid Waste Disposal Revenue, Procter and Gamble Paper Products, 5.30%, 5/15/28 ............................................................................. 6,875,000 7,062,412 Curators University System Facilities Revenue, Series A, 5.00%, 11/01/31 ...................... 17,845,000 18,432,279 Dunklin County COP, FGIC Insured, 5.00%, 12/01/24 ............................................. 1,000,000 1,036,630 Florissant COP, FGIC Insured, 5.00%, 8/01/22 .................................................. 1,285,000 1,345,601 Grandview COP, FGIC Insured, 5.00%, 1/01/23 ................................................... 2,410,000 2,517,847 Hazelwood IDA, MFHR, Lakes Apartments Project, Refunding, Series A, GNMA Secured, 6.10%, 9/20/26 .................................................................................... 1,745,000 1,797,804 Hazelwood School District GO, Missouri Direct DepositPage, Series A, FGIC Insured, 5.00%, 3/01/24 .................................................................................... 3,000,000 3,146,850 Hickory County School District R-1 Skyline GO, Direct Deposit Program, 6.05%, 3/01/20 .......................................................................... 800,000 873,408 Refunding, 6.05%, 3/01/20 ............................................................... 300,000 327,282 High Ridge Fire Protection District GO, FSA Insured, 5.375%, 11/01/20 ......................... 1,000,000 1,038,550 Howard Bend Levee District Special Tax, 5.65%, 3/01/13 .......................................................................... 1,000,000 1,046,270 5.85%, 3/01/19 .......................................................................... 4,000,000 4,199,080 Jackson County Consolidated School District No. 2 GO, Direct Deposit Program, 5.20%, 3/01/20 .................................................................................... 2,000,000 2,114,240 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 5,957,184 Jackson County Special Obligation Revenue, MBIA Insured, 5.00%, 12/01/27 ...................... 3,105,000 3,210,353 Jasper County Reorganized School District No. R-7 GO, Direct Deposit Program, 6.00%, 3/01/20 .................................................................................... 1,025,000 1,117,055 Jefferson County Conservation Public Water Supply District No. C-1 Waterworks Revenue, AMBAC Insured, 5.00%, 12/01/26 ............................................................. 4,500,000 4,654,350 Jefferson County Consolidated School District No. 006 Lease Particiation COP, FSA Insured, 5.00%, 3/01/25 ............................................................................. 1,050,000 1,104,663 Joplin IDA Health Facilities Revenue, Freeman Health Systems Project, 5.50%, 2/15/29 .......................................................................... 2,000,000 2,067,440 5.75%, 2/15/35 .......................................................................... 2,500,000 2,654,625 Kansas City Land Clearance Redevelopment Authority Lease Revenue, Municipal Auditorium and Muehlebach Hotel, Series A, FSA Insured, Pre-Refunded, 5.90%, 12/01/18 ................. 3,000,000 3,060,000
122 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MISSOURI TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MISSOURI (CONT.) Kansas City MAC Revenue, Leasehold Roe Bartle, Refunding, Series A, MBIA Insured, 5.00%, 4/15/20 .................................................................................... $ 10,000,000 $ 10,153,200 Kansas City Sanitary Sewer System Revenue, Series B, MBIA Insured, 5.00%, 1/01/25 ............. 1,120,000 1,175,765 Kansas City Tax Increment Financing Commerce Tax Increment Revenue, Blue Parkway Town Center Project, MBIA Insured, 5.00%, 7/01/27 ............................................... 1,730,000 1,799,650 Lake of the Ozarks Community Board Corp. Bridge System Revenue, Pre-Refunded, 6.25%, 12/01/16 ........................................................... 2,000,000 2,095,940 Pre-Refunded, 6.40%, 12/01/25 ........................................................... 5,000,000 5,253,950 Refunding, 5.25%, 12/01/14 .............................................................. 750,000 758,843 Refunding, 5.25%, 12/01/26 .............................................................. 800,000 763,024 Lee's Summit IDAR, John Knox Village Project, 6.55%, 8/15/10 .......................................................................... 1,000,000 1,022,820 6.625%, 8/15/13 ......................................................................... 2,000,000 2,046,520 5.70%, 8/15/22 .......................................................................... 1,500,000 1,574,070 Lee's Summit Water and Sewer Revenue, Series A, AMBAC Insured, 5.00%, 7/01/22 ................. 1,995,000 2,088,107 Metropolitan St. Louis Sewer District Wastewater Systems Revenue, Series A, MBIA Insured, 5.00%, 5/01/34 ............................................................................. 24,730,000 25,656,633 Missouri Development Finance Board Cultural Facilities Revenue, Nelson Gallery Foundation, Series A, MBIA Insured, 5.00%, 12/01/30 .................................................... 9,500,000 9,802,195 Missouri School Board Assn. COP, Pooled Finance Program, Series A-5, 7.375%, 3/01/06 .......... 10,000 10,094 Missouri School Board Assn. Lease COP, Republic R-3 School District Project, Refunding, FSA Insured, 6.00%, 3/01/16 ................................................................ 2,220,000 2,235,074 Missouri Southern State College Revenue, Auxiliary Enterprise System, MBIA Insured, 5.50%, 4/01/23 .................................................................................... 1,200,000 1,280,712 Missouri State Board of Public Buildings State Office Building, Special Obligation, Series A, 5.125%, 5/01/26 ............................................................................ 3,960,000 4,152,892 Missouri State Development Finance Board Infrastructure Facilities Revenue, Midtown Redevelopment Project, Series A, MBIA Insured, 5.75%, 4/01/22 .............................. 10,000,000 10,782,300 Missouri State Development Finance Board Recreation Facilities Revenue, YMCA Greater St. Louis Project, Series A, 5.40%, 9/01/18 ................................................ 7,420,000 7,792,632 Missouri State Development Finance Board Solid Waste Disposal Revenue, Procter and Gamble Paper Product, 5.20%, 3/15/29 .............................................................. 3,000,000 3,237,390 Missouri State Environmental Improvement and Energy Resources Authority PCR, National Rural Assn., Electric Project, Series G-6, AMBAC Insured, 5.85%, 2/01/13 ................... 2,100,000 2,131,143 Missouri State Environmental Improvement and Energy Resources Authority Water PCR, State Revolving Fund, Series A, 7.00%, 10/01/10 ............................................................... 595,000 597,047 Series A, 6.55%, 7/01/14 ................................................................ 890,000 892,456 Series A, 5.75%, 1/01/16 ................................................................ 150,000 151,760 Series B, 7.125%, 12/01/10 .............................................................. 275,000 275,550 Series B, 5.80%, 1/01/15 ................................................................ 125,000 126,525 Series B, 6.05%, 7/01/16 ................................................................ 485,000 491,004 Series B, 7.20%, 7/01/16 ................................................................ 825,000 835,890 Series B, 5.50%, 7/01/21 ................................................................ 710,000 760,744 Series B, Pre-Refunded, 5.50%, 7/01/21 .................................................. 730,000 794,904
Quarterly Statements of Investments | 123 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MISSOURI TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MISSOURI (CONT.) Missouri State GO, State Water Pollution Control, Series A, 5.00%, 6/01/26 ................................. $ 3,785,000 $ 3,913,311 Stormwater Control, Series A, 5.00%, 6/01/26 ............................................ 1,895,000 1,959,241 Missouri State HDC, MFHR, FHA Insured, 8.50%, 12/01/29 ...................................................... 65,000 66,479 SFMR, Homeowner Loan, Series D, GNMA Secured, 6.125%, 3/01/28 ........................... 180,000 183,589 SFMR, Series B, GNMA Secured, 6.45%, 9/01/27 ............................................ 320,000 327,354 Missouri State Health and Educational Facilities Authority Educational Facilities Revenue, Maryville University of St. Louis Project, 6.50%, 6/15/22 ............................... 1,750,000 1,878,573 Maryville University of St. Louis Project, 6.75%, 6/15/30 ............................... 4,500,000 4,858,920 Washington University, 5.00%, 11/15/37 .................................................. 9,150,000 9,350,568 Washington University, Refunding, Series B, 5.00%, 3/01/30 .............................. 14,000,000 14,408,100 Washington University, Series B, Pre-Refunded, 6.00%, 3/01/30 ........................... 13,550,000 14,995,514 Webster University, MBIA Insured, 5.30%, 4/01/27 ........................................ 8,000,000 8,427,040 Missouri State Health and Educational Facilities Authority Health Facilities Revenue, Children's Mercy Hospital, 5.30%, 5/15/28 ............................................... 12,420,000 12,691,998 Freeman Health Systems Project, 5.25%, 2/15/28 .......................................... 2,750,000 2,768,287 Improvement, Jefferson Memorial Hospital, Refunding, Radian Insured, 5.00%, 8/15/21 ..... 4,585,000 4,708,291 Improvement, Jefferson Memorial Hospital, Refunding, Radian Insured, 5.25%, 8/15/28 ..... 4,900,000 5,065,424 Lake of the Ozarks General Hospital, 6.25%, 2/15/11 ..................................... 410,000 419,164 Lake of the Ozarks General Hospital, Pre-Refunded, 6.25%, 2/15/11 ....................... 840,000 861,714 Lake of the Ozarks General Hospital, Pre-Refunded, 6.50%, 2/15/21 ....................... 670,000 687,641 Lake of the Ozarks General Hospital, Refunding, 6.50%, 2/15/21 .......................... 330,000 337,313 Lake Regional Health Systems Project, 5.60%, 2/15/25 .................................... 1,250,000 1,300,675 Lake Regional Health Systems Project, 5.70%, 2/15/34 .................................... 2,750,000 2,868,525 Lutheran Senior Services, Refunding, 5.875%, 2/01/23 .................................... 1,000,000 1,040,010 Lutheran Senior Services, Series A, Pre-Refunded, 6.375%, 2/01/27 ....................... 4,000,000 4,099,160 St. Luke's Episcopal, Presbyterian Hospital, FSA Insured, 5.25%, 12/01/26 ............... 8,500,000 8,952,965 Missouri State Health and Educational Facilities Authority Revenue, Senior Living Facilities, Lutheran Senior, Series A, 5.00%, 2/01/25 ..................... 1,500,000 1,515,270 Senior Living Facilities, Lutheran Senior, Series A, 5.375%, 2/01/35 .................... 4,655,000 4,781,663 Senior Living Facilities, Lutheran, Refunding, Series B, 5.125%, 2/01/22 ................ 2,900,000 2,984,274 Senior Living Facilities, Lutheran, Refunding, Series B, 5.125%, 2/01/27 ................ 2,700,000 2,745,819 Series A, 5.00%, 2/15/33 ................................................................ 15,125,000 15,537,610 SSM Healthcare System, Series A, AMBAC Insured, Pre-Refunded, 5.25%, 6/01/28 ............ 16,385,000 17,898,155 Missouri State Highways and Transportation Commission State Road Revenue, Series A, 5.00%, 2/01/21 ................................................................................. 10,000,000 10,490,300 2/01/22 ................................................................................. 3,000,000 3,140,430 Missouri State Housing Development Commission Revenue, SF, Homeowner Loan, Series C-1, GNMA Secured, 5.90%, 9/01/25 .......................................................................... 1,585,000 1,629,586 5.95%, 3/01/28 .......................................................................... 1,120,000 1,150,990 Monarch-Chesterfield Levee District Revenue, MBIA Insured, 5.75%, 3/01/19 ..................... 1,920,000 2,091,782
124 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MISSOURI TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MISSOURI (CONT.) North Kansas City Hospital Revenue, North Kansas City Hospital, Series A, FSA Insured, 5.00%, 11/15/20 ......................................................................... $ 1,000,000 $ 1,044,610 5.00%, 11/15/21 ......................................................................... 1,000,000 1,045,290 5.00%, 11/15/22 ......................................................................... 1,000,000 1,041,200 5.00%, 11/15/28 ......................................................................... 1,965,000 2,022,024 5.125%, 11/15/33 ........................................................................ 2,755,000 2,872,611 North Kansas City School District No. 74 GO, Refunding and Improvement, Missouri Direct Deposit, 5.00%, 3/01/25 .................................................................... 4,500,000 4,695,930 Pulaski County IDA, MFHR, St. Robert Project, Series A, GNMA Secured, 6.00%, 8/20/39 .......... 1,600,000 1,666,384 Springfield Missouri IDAR, Bethesda Living Centers, Refunding, Series A, 5.625%, 8/15/18 ......................................................................... 3,000,000 2,877,600 5.70%, 8/15/28 .......................................................................... 5,250,000 4,812,675 Springfield Public Building Corp. Leasehold Revenue, Capital Improvement Program, AMBAC Insured, 5.00%, 3/01/24 .............................. 2,600,000 2,724,982 Springfield Recreational, Series B, AMBAC Insured, Pre-Refunded, 6.125%, 6/01/21 ........ 3,230,000 3,563,853 Springfield Recreational, Series B, AMBAC Insured, Pre-Refunded, 6.15%, 6/01/25 ......... 3,645,000 4,019,159 Springfield School District No. R 12 GO, Missouri Direct Deposit Program, 5.85%, 3/01/20 ...... 1,500,000 1,625,970 St. Charles County Public Water Supply District No. 2, COP, Missouri Project, Series A, MBIA Insured, 5.25%, 12/01/28 .............................................................. 1,000,000 1,048,610 St. Louis Airport Revenue, Airport Development Program, Series A, MBIA Insured, 5.00%, 7/01/26 ..................... 5,000,000 5,149,150 Airport Development Program, Series A, MBIA Insured, Pre-Refunded, 5.25%, 7/01/31 ....... 18,835,000 20,440,495 Capital Improvement Program, Series A, MBIA Insured, 5.00%, 7/01/32 ..................... 2,540,000 2,602,763 Lambert, St. Louis International Airport, Refunding, MBIA Insured, 5.00%, 7/01/20 ....... 4,245,000 4,438,699 Lambert, St. Louis International Airport, Refunding, MBIA Insured, 5.50%, 7/01/29 ....... 8,320,000 9,325,888 Lambert, St. Louis International Airport, Refunding, MBIA Insured, 5.50%, 7/01/30 ....... 9,090,000 10,185,618 St. Louis County IDA Health Facilities Revenue, Mary Queen Healthcare, GNMA Secured, 5.375%, 9/20/31 .................................... 3,310,000 3,494,764 Mother of Perpetual Help, GNMA Secured, 6.40%, 8/01/35 .................................. 1,895,000 1,980,161 St. Louis County IDA, MFHR, Lucas Hunt Village Project, GNMA Secured, 5.20%, 9/20/31 ................................ 1,095,000 1,115,170 South Summit Apartments, Refunding, Series A, GNMA Secured, 6.10%, 4/20/32 .............. 1,250,000 1,292,850 St. Louis County IDAR, Bethesda Living Centers, Series B, 5.85%, 8/15/28 ...................... 1,500,000 1,401,780 St. Louis IDA Sewer and Solid Waste Disposal Facilities Revenue, Anheuser-Busch Project, 5.875%, 11/01/26 ........................................................................... 1,100,000 1,122,231 St. Louis Municipal Finance Corp. Leasehold Revenue, Carnahan Courthouse, Series A, FGIC Insured, 5.125%, 2/15/27 ............................ 4,750,000 4,947,695 City Justice Center, Series A, AMBAC Insured, 6.00%, 2/15/20 ............................ 1,000,000 1,107,810 Taney County IDA Hospital Revenue, The Skaggs Community Hospital Assn., 5.30%, 5/15/18 .......................................................................... 3,000,000 3,049,710 5.40%, 5/15/28 .......................................................................... 1,500,000 1,507,590 Taney County Reorganized School District GO, No. R-V Hollister, Refunding, FSA Insured, 5.00%, 3/01/20 ............................................................................. 1,300,000 1,361,776
Quarterly Statements of Investments | 125 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MISSOURI TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) MISSOURI (CONT.) University of Missouri Revenues, System Facilities, Pre-Refunded, 5.80%, 11/01/27 ........................................................... $ 1,000,000 $ 1,055,740 Refunding, Series B, 5.00%, 11/01/27 .................................................... 7,865,000 8,157,421 West Plains IDA Hospital Revenue, Ozarks Medical Center Project, Refunding, 5.50%, 11/15/12 ......................................................................... 1,000,000 1,007,000 5.60%, 11/15/17 ......................................................................... 1,700,000 1,692,622 5.65%, 11/15/22 ......................................................................... 1,500,000 1,450,755 West Plains Waterworks System Revenue, AMBAC Insured, 5.625%, 3/01/21 ......................... 1,250,000 1,338,963 -------------- 491,999,254 -------------- U. S. TERRITORIES 17.4% Childrens Trust Fund Tobacco Settlement Revenue, Pre-Refunded, 6.00%, 7/01/26 ................. 2,785,000 3,073,025 Puerto Rico Commonwealth GO, Public Improvement, Series A, 5.375%, 7/01/28 ......................................................................... 1,975,000 2,037,667 5.125%, 7/01/31 ......................................................................... 5,000,000 5,066,250 Pre-Refunded, 5.375%, 7/01/28 ........................................................... 1,025,000 1,121,504 Puerto Rico Commonwealth Highway and Transportation Authority Highway Revenue, Series Y, 5.50%, 7/01/36 ............................................................................. 11,750,000 12,566,155 Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Series D, Pre-Refunded, 5.375%, 7/01/36 ................................................. 2,500,000 2,737,675 Series G, 5.00%, 7/01/42 ................................................................ 2,500,000 2,462,725 Series K, 5.00%, 7/01/26 ................................................................ 6,175,000 6,230,884 Puerto Rico Commonwealth Infrastructure Financing Authority Special, Refunding, Series C, AMBAC Insured, 5.50%, 7/01/23 .............................................................. 3,500,000 4,014,115 Puerto Rico Electric Power Authority Power Revenue, Series NN, 5.125%, 7/01/29 .............................................................. 3,250,000 3,334,955 Series II, 5.25%, 7/01/31 ............................................................... 10,000,000 10,353,100 Series RR, FGIC Insured, 5.00%, 7/01/35 ................................................. 10,905,000 11,368,026 Puerto Rico HFC Revenue, MF Mortgage, Portfolio A-I, 7.50%, 4/01/22 ........................... 105,000 105,075 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 2,557,750 Puerto Rico PBA Revenue, Guaranteed, Government Facilities, Series D, 5.375%, 7/01/33 ............................................................... 2,150,000 2,226,239 Series D, Pre-Refunded, 5.375%, 7/01/33 ................................................. 5,885,000 6,444,487 Series I, 5.375%, 7/01/34 ............................................................... 10,000,000 10,442,700 Series I, 5.00%, 7/01/36 ................................................................ 14,450,000 14,315,326 Virgin Islands PFAR, senior lien, Fund Loan Notes, Refunding, Series A, 5.40%, 10/01/12 ......................................................................... 2,500,000 2,620,200 5.50%, 10/01/22 ......................................................................... 2,500,000 2,594,850 -------------- 105,672,708 -------------- TOTAL LONG TERM INVESTMENTS (COST $571,740,309) ............................................... 597,671,962 --------------
126 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MISSOURI TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM INVESTMENTS 0.6% BONDS 0.6% MISSOURI 0.6% (a)Missouri State Health and Educational Facilities Authority Educational Facilities Revenue, Washington University, Series B, Daily VRDN and Put, 3.00%, 2/15/33 ........................ $ 970,000 $ 970,000 (a)Missouri State Health and Educational Facilities Authority Health Facilities Revenue, SSM Health Care Corp., Refunding, Series C-1, FSA Insured, Daily VRDN and Put, 2.98%, 6/01/19 ................................................................................. 2,400,000 2,400,000 -------------- TOTAL SHORT TERM INVESTMENTS (COST $3,370,000) ................................................ 3,370,000 -------------- TOTAL INVESTMENTS (COST $575,110,309) 98.8% ................................................... 601,041,962 OTHER ASSETS, LESS LIABILITIES 1.2% ........................................................... 7,476,423 -------------- NET ASSETS 100.0% ............................................................................. $ 608,518,385 ==============
See Selected Portfolio Abbreviations on page 169. (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 | 127 See Notes to Statements of Investments. | FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN NEW JERSEY TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 98.5% BONDS 98.0% DELAWARE 2.2% Delaware River and Bay Authority Revenue, FGIC Insured, Pre-Refunded, 5.25%, 1/01/26 .............................................. $ 9,000,000 $ 9,193,410 MBIA Insured, 5.00%, 1/01/27 ............................................................ 10,000,000 10,311,900 Series A, AMBAC Insured, Pre-Refunded, 5.75%, 1/01/29 ................................... 4,000,000 4,383,000 -------------- 23,888,310 -------------- NEW JERSEY 72.1% Aberdeen Township GO, Refunding, FGIC Insured, 5.70%, 2/01/22 ................................. 4,100,000 4,281,261 Allamuchy Town Board of Education COP, MBIA Insured, 6.00%, 11/01/14 .......................... 1,000,000 1,011,830 Atlantic County Improvement Authority Luxury Tax Revenue, Convention Center Project, MBIA Insured, ETM, 7.40%, 7/01/16 .......................................................... 9,500,000 11,728,700 Bergen County Improvement Authority School District Revenue GO, Wyckoff Township Board of Education Project, 5.00%, 4/01/32 ................................................. 3,400,000 3,538,584 Berkeley Township Board of Education GO, FSA Insured, 4.75%, 8/01/22 .......................... 1,975,000 2,022,084 Branchburg Township Board of Education GO, FGIC Insured, 5.00%, 7/15/26 ................................................................................. 1,230,000 1,275,572 7/15/27 ................................................................................. 1,300,000 1,346,852 7/15/28 ................................................................................. 1,365,000 1,412,816 7/15/29 ................................................................................. 1,440,000 1,488,989 Camden County Improvement Authority Health System Revenue, Catholic Health East, Series B, AMBAC Insured, 5.00%, 11/15/28 ................................................... 11,600,000 11,910,880 Cape May County IPC Financing Authority Revenue, Atlantic City Electric Co., Refunding, Series A, MBIA Insured, 6.80%, 3/01/21 ..................................................... 5,400,000 6,946,722 Carteret Board of Education COP, MBIA Insured, 5.75%, 1/15/30 ................................. 1,155,000 1,251,200 East Orange GO, Water Utility, AMBAC Insured, Pre-Refunded, 5.70%, 6/15/23 ................................................................................. 1,200,000 1,280,940 6/15/24 ................................................................................. 1,385,000 1,478,418 6/15/25 ................................................................................. 1,465,000 1,563,814 Egg Harbor Township School District GO, FGIC Insured, Pre-Refunded, 5.125%, 7/15/24 ............................................. 4,870,000 5,296,904 MBIA Insured, 5.00%, 4/01/29 ............................................................ 3,195,000 3,342,609 MBIA Insured, 5.00%, 4/01/30 ............................................................ 3,027,000 3,159,764 Freehold Township Board of Education GO, MBIA Insured, 5.00%, 2/15/30 ......................... 1,500,000 1,545,510 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 1,534,789 Series B, 7.00%, 12/01/29 ............................................................... 1,250,000 1,394,800 Hammonton School District GO, FGIC Insured, 5.00%, 8/01/26 ................................................................................. 1,155,000 1,205,381 8/01/27 ................................................................................. 1,215,000 1,265,848 Higher Education Student Assistance Authority Student Loan Revenue, Series A, MBIA Insured, 6.15%, 6/01/19 ............................................................... 1,560,000 1,585,412 Highland Park School District GO, Refunding, MBIA Insured, 5.125%, 2/15/25 .................... 7,120,000 7,268,238 Hoboken GO, Parking Utility, Series A, FGIC Insured, 5.00%, 1/01/23 ........................... 4,315,000 4,534,979 Hoboken Parking Authority Parking Revenue, AMBAC Insured, Pre-Refunded, 5.30%, 5/01/27 .................................................................................... 3,600,000 3,970,548
128 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN NEW JERSEY TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) NEW JERSEY (CONT.) Hudson County Improvement Authority Solid Waste Systems Revenue, Koppers Site Project, Series A, 6.125%, 1/01/29 .................................................................. $ 6,510,000 $ 6,517,747 Jackson Township School District GO, FGIC Insured, 5.00%, 4/15/25 ............................. 3,000,000 3,134,310 Jersey City GO, FSA Insured, Pre-Refunded, 5.00%, 3/01/21 ............................................... 1,500,000 1,591,485 Series A, FSA Insured, Pre-Refunded, 5.625%, 3/01/20 .................................... 1,000,000 1,094,100 Lafayette Yard Community Development Revenue, Hotel/Conference Center Project-Trenton Guaranteed, MBIA Insured, Pre-Refunded, 6.00%, 4/01/29 .......................................................................... 1,750,000 1,943,515 5.80%, 4/01/35 .......................................................................... 2,520,000 2,778,577 Middlesex County COP, MBIA Insured, 5.00%, 8/01/31 ............................................ 3,250,000 3,338,335 Middlesex County Improvement Authority Revenue, Administration Building Residential Project, FNMA Insured, 5.25%, 7/01/21 .......................................................................... 750,000 793,703 5.35%, 7/01/34 .......................................................................... 1,575,000 1,648,174 Middletown Township GO, Board of Education, MBIA Insured, Pre-Refunded, 5.85%, 8/01/24 ................................................................................. 4,295,000 4,475,476 8/01/25 ................................................................................. 5,000 5,210 Monroe Township Municipal Utilities Authority Middlesex County Revenue, FGIC Insured, Pre-Refunded, 5.00%, 2/01/26 ............................................................... 1,000,000 1,068,690 Mount Olive Township Board of Education GO, MBIA Insured, 5.00%, 7/15/29 ...................... 7,875,000 8,238,982 New Jersey EDA Heating and Cooling Revenue, Trigen-Trenton Project, Series B, 6.20%, 12/01/07 ................................................................................... 2,660,000 2,664,948 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 5,456,500 New Jersey EDA Revenue, Cigarette Tax, 5.50%, 6/15/24 ........................................................... 5,000,000 5,211,150 Hillcrest Health Services System Project, Refunding, AMBAC Insured, 5.375%, 1/01/16 .............................................................................. 2,500,000 2,634,725 Jewish Community Housing Corp. Metropolitan Project, 5.90%, 12/01/31 .................... 5,110,000 5,440,208 Motor Vehicle Surcharge Revenue, Series A, MBIA Insured, 5.00%, 7/01/29 ................. 12,500,000 13,048,500 Motor Vehicle Surcharge Revenue, Series A, MBIA Insured, 5.00%, 7/01/34 ................. 10,000,000 10,337,700 Municipal Rehabilitation, Series A, AMBAC Insured, 5.00%, 4/01/28 ....................... 14,545,000 15,159,381 School Facilities Construction, Series A, AMBAC Insured, Pre-Refunded, 5.00%, 6/15/21 .............................................................................. 15,000,000 16,082,850 School Facilities Construction, Series C, MBIA Insured, 4.75%, 6/15/25 .................. 16,500,000 16,740,240 School Facilities Construction, Series L, FSA Insured, 5.00%, 3/01/30 ................... 12,000,000 12,531,720 School Facilities Construction, Series O, 5.125%, 3/01/28 ............................... 5,000,000 5,233,750 Transportation Project Sub Lease, Series A, FSA Insured, Pre-Refunded, 5.25%, 5/01/17 .............................................................................. 5,000,000 5,294,950 Transportation Project Sub Lease, Series A, FSA Insured, Pre-Refunded, 5.00%, 5/01/18 .............................................................................. 2,000,000 2,102,020 New Jersey EDA School Revenue, Blair Academy, 1995 Project, Series A, 5.85%, 9/01/16 .................................................................................... 1,640,000 1,650,070
Quarterly Statements of Investments | 129 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN NEW JERSEY TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) NEW JERSEY (CONT.) New Jersey EDA State Lease Revenue, Liberty State Park Lease Rental, Refunding, AMBAC Insured, 5.75%, 3/15/20 ............... $ 4,605,000 $ 4,726,894 Liberty State Park Project, Series C, FSA Insured, 5.00%, 3/01/27 ....................... 3,000,000 3,128,310 New Jersey EDA Water Facilities Revenue, Hackensack Water Co. Project, Refunding, Series A, MBIA Insured, 5.80%, 3/01/24 ..................................................... 1,000,000 1,007,380 New Jersey EDA, PCR, Jersey Central Power and Light, 7.10%, 7/01/15 ........................... 550,000 557,222 New Jersey Health Care Facilities Financing Authority Department of Human Services Revenue, Greystone Park Psychiatric Hospital, AMBAC Insured, 5.00%, 9/15/27 ................ 5,000,000 5,163,700 New Jersey Health Care Facilities Financing Authority Revenue, Atlantic City Medical Center, Refunding, 5.75%, 7/01/25 ................................. 5,000,000 5,276,350 Atlantic Health Systems, Series A, AMBAC Insured, 5.00%, 7/01/27 ........................ 7,500,000 7,659,450 Burdette Tomlin Memorial Hospital, 5.50%, 7/01/29 ....................................... 5,725,000 5,908,887 Cathedral Health Services, Refunding, MBIA Insured, 5.25%, 8/01/21 ...................... 5,000,000 5,224,700 East Orange General Hospital, Series B, 7.75%, 7/01/20 .................................. 4,285,000 4,286,500 Englewood Hospital, MBIA Insured, 5.00%, 8/01/31 ........................................ 7,330,000 7,559,576 Franciscan St. Mary's Hospital, ETM, 5.875%, 7/01/12 .................................... 3,220,000 3,441,053 Hackensack University Medical Center, 6.00%, 1/01/34 .................................... 10,000,000 10,612,500 Holy Name Hospital, 6.00%, 7/01/25 ...................................................... 3,000,000 3,127,590 Holy Name Hospital, AMBAC Insured, 5.25%, 7/01/20 ....................................... 3,000,000 3,127,410 Jersey City Medical Center, AMBAC Insured, 5.00%, 8/01/31 ............................... 7,000,000 7,239,750 JFK Medical Center/Hartwyck, Refunding, MBIA Insured, 5.00%, 7/01/25 .................... 7,855,000 8,063,472 Medical Center at Princeton Obligation Group, AMBAC Insured, 5.00%, 7/01/28 ............. 7,000,000 7,175,490 Meridian Health Systems Obligation Group, FSA Insured, 5.375%, 7/01/24 .................. 6,500,000 6,877,715 Meridian Health Systems Obligation Group, FSA Insured, 5.25%, 7/01/29 ................... 20,000,000 20,902,200 Pascack Valley Hospital Assn., 5.125%, 7/01/28 .......................................... 3,900,000 3,389,763 Robert Wood Johnson University Hospital, 5.75%, 7/01/25 ................................. 5,000,000 5,357,850 Somerset Medical Center, 5.75%, 7/01/28 ................................................. 11,000,000 11,409,090 South Jersey Hospital, 5.875%, 7/01/21 .................................................. 10,000,000 10,490,300 South Jersey Hospital, 6.00%, 7/01/32 ................................................... 18,600,000 19,598,262 Southern Ocean County Hospital, FSA Insured, 5.00%, 7/01/27 ............................. 2,000,000 2,039,400 St. Joseph's Hospital and Medical Center, Refunding, Connie Lee Insured, 5.75%, 7/01/16 .............................................................................. 1,000,000 1,032,500 St. Joseph's Hospital and Medical Center, Refunding, Connie Lee Insured, 6.00%, 7/01/26 .............................................................................. 1,000,000 1,033,620 St. Peters University Hospital, Series A, 6.875%, 7/01/30 ............................... 1,500,000 1,643,085 New Jersey State Building Authority State Building Revenue, Refunding, 5.00%, 6/15/15 ......... 5,000,000 5,209,250 New Jersey State Educational Facilities Authority Revenue, Capital Improvement Funding Project, Series A, FSA Insured, 5.00%, 9/01/20 .............. 8,000,000 8,285,840 FGIC Insured, Pre-Refunded, 5.50%, 7/01/30 .............................................. 6,615,000 7,175,158 Kean University, Series D, FGIC Insured, 5.00%, 7/01/33 ................................. 10,000,000 10,337,000 Montclair State University, Series F, FGIC Insured, 5.00%, 7/01/31 ...................... 5,000,000 5,146,650 Princeton University, Refunding, Series A, 5.00%, 7/01/30 ............................... 5,000,000 5,248,100 Princeton University, Refunding, Series D, 5.00%, 7/01/29 ............................... 1,000,000 1,047,520 Ramapo College of New Jersey, Series D, AMBAC Insured, 5.00%, 7/01/25 ................... 1,000,000 1,038,340 Ramapo College of New Jersey, Series D, AMBAC Insured, 5.00%, 7/01/31 ................... 1,500,000 1,543,995 Ramapo College of New Jersey, Series E, FGIC Insured, 5.00%, 7/01/34 .................... 2,000,000 2,074,740
130 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 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 Educational Facilities Authority Revenue, (cont.) Richard Stockton College, Refunding, Series F, AMBAC Insured, 5.00%, 7/01/28 ............ $ 2,370,000 $ 2,463,141 Rowan College, Series E, AMBAC Insured, Pre-Refunded, 6.00%, 7/01/26 .................... 9,810,000 10,063,392 Rowan University, Refunding, Series D, AMBAC Insured, 5.00%, 7/01/24 .................... 1,755,000 1,840,679 Rowan University, Series C, FGIC Insured, 5.00%, 7/01/31 ................................ 2,000,000 2,067,780 Rowan University, Series K, FGIC Insured, 5.00%, 7/01/27 ................................ 1,000,000 1,039,680 Rowan University, Series K, FGIC Insured, 5.00%, 7/01/33 ................................ 1,000,000 1,029,860 Seton Hall University Project, Series G, AMBAC Insured, 5.00%, 7/01/26 .................. 1,870,000 1,938,872 Stevens Institute of Technology, Series I, 5.00%, 7/01/18 ............................... 1,100,000 1,132,175 Stevens Institute of Technology, Series I, 5.00%, 7/01/28 ............................... 1,575,000 1,593,538 University of Medical Dentistry, Series C, AMBAC Insured, 5.125%, 12/01/29 .............. 2,700,000 2,780,838 New Jersey State Highway Authority Garden State Parkway General Revenue, ETM, 6.20%, 1/01/10 .................................................................................... 5,000,000 5,395,350 New Jersey State Housing and Mortgage Finance Agency MFHR, Series A1, FSA Insured, 6.35%, 11/01/31 ................................................. 2,000,000 2,104,140 Series B, FSA Insured, 6.25%, 11/01/26 .................................................. 1,480,000 1,556,664 Series D, FSA Insured, 5.50%, 5/01/22 ................................................... 885,000 905,567 Series E1, FSA Insured, 5.70%, 5/01/20 .................................................. 2,790,000 2,923,055 Series E1, FSA Insured, 5.75%, 5/01/25 .................................................. 1,295,000 1,351,721 New Jersey State Housing and Mortgage Finance Agency Revenue, Home Buyer, Series CC, MBIA Insured, 5.875%, 10/01/31 ............................................... 1,570,000 1,588,134 Series U, MBIA Insured, 5.85%, 4/01/29 .................................................. 4,275,000 4,369,819 New Jersey State Transportation Corp. COP, Federal Transportation Administration Grants, Series A, AMBAC Insured, Pre-Refunded, 6.125%, 9/15/15 ..................................... 2,000,000 2,185,620 New Jersey State Transportation Trust Fund Authority Revenue, Transportation System, Series B, MBIA Insured, Pre-Refunded, 5.00%, 12/15/21 ................................... 10,000,000 10,758,100 Series D, FSA Insured, 5.00%, 6/15/20 ................................................... 7,000,000 7,385,280 New Jersey State Turnpike Authority Turnpike Revenue, Series A, AMBAC Insured, 5.00%, 1/01/30 ................................................. 13,500,000 14,025,285 Series A, FGIC Insured, 5.00%, 1/01/27 .................................................. 6,500,000 6,782,685 Series A, MBIA Insured, Pre-Refunded, 5.60%, 1/01/22 .................................... 7,500,000 8,110,500 Series A, MBIA Insured, Pre-Refunded, 5.50%, 1/01/25 .................................... 16,300,000 17,565,369 Series C, FSA Insured, 5.00%, 1/01/35 ................................................... 22,675,000 23,562,499 Newark Housing Authority Port Authority Revenue, Newark Marine Terminal, MBIA Insured, 5.00%, 1/01/26 .......................................................................... 3,245,000 3,400,695 5.50%, 1/01/27 .......................................................................... 3,240,000 3,546,634 5.50%, 1/01/28 .......................................................................... 2,000,000 2,177,800 5.00%, 1/01/34 .......................................................................... 29,155,000 30,091,750 5.00%, 1/01/37 .......................................................................... 3,965,000 4,081,571 North Brunswick Township Board of Education GO, Refunding, FGIC Insured, 5.00%, 2/01/15 .................................................................................... 2,000,000 2,051,200 North Hudson Sewer Authority New Jersey Sewer Revenue, Series C, MBIA Insured, 5.00%, 8/01/22 ................................................................................. 1,000,000 1,038,830 8/01/31 ................................................................................. 1,000,000 1,029,700 North Plainfield Board of Education GO, FSA Insured, 4.875%, 8/15/25 .......................... 1,020,000 1,045,653
Quarterly Statements of Investments | 131 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN NEW JERSEY TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) NEW JERSEY (CONT.) Ocean County Board of Education GO, Cape May, FGIC Insured, Pre-Refunded, 5.00%, 4/01/21 ................................................................................. $ 2,155,000 $ 2,307,380 4/01/22 ................................................................................. 2,142,000 2,293,461 Passaic County Improvement Authority Lease Revenue, Preakness Healthcare Center Project, AMBAC Insured, 5.00%, 5/01/35 .............................................................. 8,045,000 8,251,032 Passaic County Improvement Authority Parking Facilities Revenue, Paterson Parking Deck Project, Series A, FSA Insured, 5.00%, 4/15/35 ...................................................... 1,375,000 1,416,374 Passaic Valley Sewer Commissioners GO, Sewer System, Refunding, Series E, AMBAC Insured, 5.75%, 12/01/22 ............................................................. 8,925,000 9,688,623 Rutgers State University COP, AMBAC Insured, 5.00%, 1/01/34 ................................... 1,000,000 1,032,130 South Brunswick Township Board of Education GO, Refunding, Series AA, FGIC Insured, 5.50%, 8/01/24 ............................................................................. 1,720,000 1,768,624 South Jersey Transportation Authority Transportation System Revenue, AMBAC Insured, 5.00%, 11/01/29 ............................................................................ 12,000,000 12,382,680 Tobacco Settlement Financing Corp. Revenue, Asset-Backed, Refunding, 6.00%, 6/01/37 ........... 13,000,000 13,443,690 Union County Utilities Authority Solid Waste Revenue, sub. lease, Ogden Martin, Series A, AMBAC Insured, 5.35%, 6/01/23 .............................................................. 2,620,000 2,715,997 University of Medicine and Dentistry COP, AMBAC Insured, 5.00%, 4/15/32 ........................................................... 4,625,000 4,779,984 MBIA Insured, 5.00%, 6/15/29 ............................................................ 4,090,000 4,239,326 MBIA Insured, 5.00%, 6/15/36 ............................................................ 9,000,000 9,283,500 Series A, MBIA Insured, 5.00%, 9/01/22 .................................................. 1,700,000 1,797,801 University of Medicine and Dentistry Revenue, Series A, AMBAC Insured, 5.00%, 12/01/24 ................................................................................ 2,500,000 2,615,425 12/01/31 ................................................................................ 29,395,000 30,410,303 Washington Township Board of Education GO, Mercer County, FGIC Insured, Pre-Refunded, 5.00%, 1/01/28 ............................................................................. 4,497,000 4,837,558 West Orange County Board of Education COP, MBIA Insured, Pre-Refunded, 5.625%, 10/01/29 ................................................................................... 2,000,000 2,173,460 Woodbridge Township GO, FGIC Insured, 5.00%, 7/15/24 .......................................... 1,220,000 1,271,386 -------------- 770,719,382 -------------- NEW YORK 4.8% Port Authority of New York and New Jersey Revenue, 120th Series, MBIA Insured, 5.50%, 10/15/35 ............................................. 5,000,000 5,184,000 121st Series, MBIA Insured, 5.375%, 10/15/35 ............................................ 3,000,000 3,125,730 Consolidated, 109th Series, FSA Insured, 5.375%, 7/15/27 ................................ 2,500,000 2,576,825 Consolidated, 125th Series, FSA Insured, 5.00%, 4/15/32 ................................. 23,950,000 24,919,975 Consolidated, Refunding, 135th Series, XLCA Insured, 5.00%, 9/15/29 ..................... 3,900,000 4,042,545 Port Authority of New York and New Jersey Special Obligation Revenue, 4th Installment, Special Project, 6.75%, 10/01/11 ....................................... 2,500,000 2,607,450 John F. Kennedy International Air Terminal, MBIA Insured, 5.75%, 12/01/22 ............... 8,000,000 8,455,600 -------------- 50,912,125 --------------
132 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN NEW JERSEY TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) PENNSYLVANIA 1.9% Delaware River Port Authority Pennsylvania and New Jersey Delaware River Bridges Revenue, FSA Insured, 5.75%, 1/01/22 ................................................................................. $ 8,500,000 $ 9,159,515 1/01/26 ................................................................................. 10,000,000 10,764,100 -------------- 19,923,615 -------------- U.S. TERRITORIES 17.0% Puerto Rico Commonwealth GO, Public Improvement, FSA Insured, 5.125%, 7/01/30 ............................................................ 8,350,000 8,713,058 FSA Insured, Pre-Refunded, 5.125%, 7/01/30 .............................................. 13,655,000 14,769,112 Series A, 5.00%, 7/01/29 ................................................................ 10,000,000 10,027,300 Series A, FGIC Insured, Pre-Refunded, 5.00%, 7/01/32 .................................... 3,000,000 3,247,440 Series A, Pre-Refunded, 5.00%, 7/01/27 .................................................. 11,555,000 12,508,056 Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Series B, Pre-Refunded, 6.00%, 7/01/39 .................................................. 10,000,000 11,164,300 Series D, Pre-Refunded, 5.375%, 7/01/36 ................................................. 5,000,000 5,475,350 Series D, Pre-Refunded, 5.25%, 7/01/38 .................................................. 5,000,000 5,439,200 Puerto Rico Commonwealth Infrastructure Financing Authority Special Obligation, Series A, ETM, 5.50%, 10/01/32 ....................................................................... 1,000,000 1,085,310 Puerto Rico Commonwealth Infrastructure Financing Authority Special Tax Revenue, Series A, AMBAC Insured, Pre-Refunded, 5.00%, 7/01/28 ................................................ 15,000,000 15,674,250 Puerto Rico Electric Power Authority Power Revenue, Series II, 5.25%, 7/01/31 ............................................................... 18,000,000 18,635,580 Series RR, FGIC Insured, 5.00%, 7/01/35 ................................................. 25,940,000 27,041,412 Puerto Rico HFC Revenue, MFM, Portfolio A-I, 7.50%, 4/01/22 ................................... 1,630,000 1,631,174 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 1,024,570 Puerto Rico PBA Revenue, Guaranteed, Government Facilities, Series D, 5.375%, 7/01/33 ......................................................................... 6,830,000 7,072,192 Pre-Refunded, 5.375%, 7/01/33 ........................................................... 18,170,000 19,897,422 Puerto Rico Public Finance Corp. Revenue, Commonwealth Appropriation, Series A, MBIA Insured, Pre-Refunded, 5.00%, 8/01/29 ................................................. 5,000,000 5,381,600 Virgin Islands PFAR, Gross Receipts Taxes Loan Note, Radian Insured, 5.00%, 10/01/33 ......................... 5,000,000 5,125,150 senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/15 ...................... 2,500,000 2,611,125 senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/18 ...................... 3,045,000 3,168,779 senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/22 ...................... 2,000,000 2,075,880 -------------- 181,768,260 -------------- TOTAL BONDS (COST $993,001,790) ............................................................... 1,047,211,692 --------------
Quarterly Statements of Investments | 133 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN NEW JERSEY TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) ZERO COUPON BONDS 0.5% NEW JERSEY 0.5% Middlesex County COP, MBIA Insured, 6/15/24 ................................................... $ 1,000,000 $ 423,620 New Jersey State Turnpike Authority Turnpike Revenue, Growth and Income Securities, Series B, AMBAC Insured, 1/01/35 ........................................................... 7,500,000 4,862,175 -------------- TOTAL ZERO COUPON BONDS (COST $4,952,440) ..................................................... 5,285,795 -------------- TOTAL LONG TERM INVESTMENTS (COST $997,954,230) ............................................... 1,052,497,487 -------------- SHORT TERM INVESTMENTS 0.1% BONDS 0.1% NEW JERSEY 0.1% (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 .......................................... 100,000 100,000 (a)New Jersey State Educational Facilities Authority Revenue, Princeton University, Series B, Daily VRDN and Put, 2.90%, 7/01/21 ......................................................... 1,300,000 1,300,000 -------------- TOTAL SHORT TERM INVESTMENTS (COST $1,400,000) ................................................ 1,400,000 -------------- TOTAL INVESTMENTS (COST $999,354,230) 98.6% ................................................... 1,053,897,487 OTHER ASSETS, LESS LIABILITIES 1.4% ........................................................... 15,120,329 -------------- NET ASSETS 100.0% ............................................................................. $1,069,017,816 ==============
See Selected Portfolio Abbreviations on page 169. (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. 134 | See Notes to Statements of Investments. | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN NORTH CAROLINA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 96.9% BONDS 96.9% NORTH CAROLINA 81.1% Appalachian State University Revenue, Refunding, MBIA Insured, 5.00%, 7/15/30 ................................................ $ 2,000,000 $ 2,082,000 Teachers College Utility System, Refunding, MBIA Insured, 5.00%, 5/15/24 ............... 3,000,000 3,090,180 Asheville Water System Revenue, FGIC Insured, Pre-Refunded, 5.70%, 8/01/25 ............................................. 4,000,000 4,143,840 FSA Insured, 5.00%, 8/01/25 ............................................................ 1,000,000 1,073,660 Broad River Water Authority Water System Revenue, MBIA Insured, Pre-Refunded, 5.375%, 6/01/26 ................................................................................... 1,000,000 1,086,690 Brunswick County Enterprise System Revenue, Series A, FSA Insured, 5.00%, 4/01/27 ................................................................................ 1,500,000 1,562,055 4/01/28 ................................................................................ 1,750,000 1,814,995 Buncombe County Metropolitan Sewer District Sewer System Revenue, FSA Insured, Pre-Refunded, 5.00%, 7/01/29 .............................................................. 5,000,000 5,314,650 Centennial Authority Hotel Tax Revenue, Arena Project, FSA Insured, 5.125%, 9/01/19 .......... 5,115,000 5,361,645 Charlotte Airport Revenue, Series A, MBIA Insured, 5.00%, 7/01/29 ................................................. 5,000,000 5,176,000 Series A, MBIA Insured, 5.00%, 7/01/34 ................................................. 9,130,000 9,392,487 Series B, MBIA Insured, 6.00%, 7/01/24 ................................................. 4,000,000 4,342,960 Series B, MBIA Insured, 6.00%, 7/01/28 ................................................. 6,300,000 6,820,380 Charlotte COP, Convention Facility Project, Pre-Refunded, 5.625%, 12/01/25 ............................ 7,230,000 7,985,029 Governmental Facilities Projects, Series G, 5.00%, 6/01/28 ............................. 3,000,000 3,094,470 Transit Projects, Phase II, Series E, 5.00%, 6/01/35 ................................... 15,000,000 15,410,550 Charlotte GO, Series C, 5.00%, 7/01/27 ....................................................... 2,010,000 2,099,103 Charlotte Storm Water Fee Revenue, Refunding, 5.00%, 6/01/25 ................................. 1,000,000 1,044,410 Charlotte Water and Sewer GO, Pre-Refunded, 5.00%, 2/01/21 ................................... 4,000,000 4,218,200 Charlotte Water and Sewer System Revenue, 5.125%, 6/01/26 ........................................................................ 6,000,000 6,312,360 Pre-Refunded, 5.25%, 6/01/24 ........................................................... 3,000,000 3,212,910 Pre-Refunded, 5.25%, 6/01/25 ........................................................... 3,950,000 4,272,044 Charlotte-Mecklenberg Hospital Authority Health Care System Revenue, 5.90%, 1/15/16 ......................................................................... 3,465,000 3,542,824 Carolinas Healthcare System, Refunding, Series A, 5.00%, 1/15/31 ....................... 5,000,000 5,094,600 Carolinas Healthcare System, Series A, 5.125%, 1/15/22 ................................. 8,000,000 8,255,840 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 1,511,451 Concord COP, Series B, MBIA Insured, Pre-Refunded, 5.75%, 6/01/16 ......................................................................... 1,475,000 1,522,510 6.125%, 6/01/21 ........................................................................ 2,180,000 2,254,142 Cumberland County COP, Civic Center Project, Refunding, AMBAC Insured, 5.00%, 12/01/18 .................................................................................. 3,000,000 3,117,240 Cumberland County Finance Corp. Installment Payment Revenue, Detention Center and Mental Health, FSA Insured, Pre-Refunded, 5.625%, 6/01/24 ........................................ 5,000,000 5,513,300 Cumberland County Hospital Facilities Revenue, Cumberland County Hospital Systems Inc., Refunding, 5.25%, 10/01/29 ................................................................ 5,250,000 5,365,710
Quarterly Statements of Investments | 135 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN NORTH CAROLINA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) NORTH CAROLINA (CONT.) Dare County COP, AMBAC Insured, 5.125%, 6/01/21 ........................................................................ $ 650,000 $ 695,845 5.00%, 6/01/23 ......................................................................... 3,000,000 3,142,200 5.00%, 6/01/29 ......................................................................... 5,295,000 5,487,632 Durham County Enterprise System Revenue, MBIA Insured, 5.00%, 6/01/23 ........................ 1,670,000 1,753,984 Durham County GO, Public Improvement, 5.00%, 6/01/22 ......................................... 2,000,000 2,116,820 Franklin County COP, AMBAC Insured, 5.00%, 6/01/25 ........................................... 1,250,000 1,305,363 Gastonia Combined Utilities System Revenue, FSA Insured, 5.00%, 5/01/25 ............................................................ 1,000,000 1,036,820 MBIA Insured, Pre-Refunded, 5.625%, 5/01/19 ............................................ 1,000,000 1,097,190 Greensboro Enterprise System Revenue, Series A, 5.125%, 6/01/21 ................................................................................ 390,000 412,788 6/01/22 ................................................................................ 350,000 369,646 Greensboro HDC, Mortgage Revenue, Refunding, Series A, MBIA Insured, 6.70%, 1/01/24 .......... 1,320,000 1,320,502 Halifax County Industrial Facilities and PCFA Revenue, Champion International Corp. Project, 5.45%, 11/01/33 ........................................................................ 4,000,000 4,023,680 Refunding, 6.45%, 11/01/29 ............................................................. 3,900,000 4,130,334 Harnett County COP, FSA Insured, 5.125%, 12/01/23 ............................................ 1,000,000 1,065,720 Haywood County Industrial Facilities and PCFA, Environmental Improvement Revenue, Champion International Corp. Project, 6.25%, 9/01/25 ...................................... 2,000,000 2,046,360 Henderson County COP, Henderson County School Project, AMBAC Insured, 5.00%, 3/01/21 ................................................................................... 1,000,000 1,051,030 High Point Combined Enterprise System Revenue, FGIC Insured, 5.00%, 11/01/31 ................. 11,000,000 11,440,440 Mecklenburg County GO, Public Improvement, Series B, 4.70%, 2/01/20 .......................... 3,000,000 3,088,680 New Hanover County COP, New Hanover County Projects, AMBAC Insured, 5.00%, 12/01/22 .................................................................................. 5,000,000 5,267,850 North Carolina Capital Facilities Finance Agency Educational Facilities Revenue, Johnson and Wales University Project, Series A, XLCA Insured, 5.00%, 4/01/33 ........... 3,000,000 3,077,430 Meredith College, AMBAC Insured, 4.875%, 6/01/24 ....................................... 1,000,000 1,025,920 North Carolina Eastern Municipal Power Agency Power System Revenue, Refunding, Series A, 6.50%, 1/01/18 .................................................... 3,000,000 3,517,290 Refunding, Series A, 5.75%, 1/01/26 .................................................... 10,000,000 10,529,000 Refunding, Series D, 6.75%, 1/01/26 .................................................... 5,000,000 5,514,700 Series B, MBIA Insured, 5.875%, 1/01/21 ................................................ 5,000,000 5,221,700 North Carolina Educational Facilities Finance Agency Revenue, Duke University Project, Series A, 5.25%, 7/01/42 .................................................................. 10,000,000 10,441,700 North Carolina HFA, SFR, Series AA, 6.25%, 3/01/17 .............................................................. 335,000 338,095 Series X, 6.65%, 9/01/19 ............................................................... 45,000 45,080 North Carolina HFAR, MF, Mortgage Loan Resolution, Refunding, Series H, 6.05%, 7/01/28 ...................... 2,230,000 2,275,983 MF, Refunding, Series A, AMBAC Insured, 5.90%, 7/01/20 ................................. 2,435,000 2,468,335 MF, Refunding, Series J, 5.45%, 7/01/17 ................................................ 2,175,000 2,239,706 Refunding, Series F, 6.70%, 1/01/27 .................................................... 2,210,000 2,228,851 SF, Refunding, Series DD, 6.20%, 9/01/27 ............................................... 1,110,000 1,121,189 SF, Series JJ, 6.45%, 9/01/27 .......................................................... 1,815,000 1,857,217 SFR, Series RR, 5.85%, 9/01/28 ......................................................... 2,455,000 2,492,291
136 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 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, Novant Health Project, Refunding, Series A, MBIA Insured, 5.00%, 10/01/18 .............. $ 1,000,000 $ 1,036,140 Novant Health Project, Refunding, Series A, MBIA Insured, 5.00%, 10/01/24 .............. 5,500,000 5,649,765 Refunding, FGIC Insured, 5.00%, 1/01/33 ................................................ 15,605,000 16,109,978 Scotland Memorial Hospital Project, Radian Insured, 5.50%, 10/01/19 .................... 630,000 664,480 Scotland Memorial Hospital Project, Radian Insured, 5.50%, 10/01/29 .................... 1,220,000 1,278,743 Wakemed Project, AMBAC Insured, 5.00%, 10/01/32 ........................................ 4,205,000 4,309,704 North Carolina Medical Care Commission Health System Revenue, Catholic Health East Project, Series C, AMBAC Insured, 5.00%, 11/15/18 .................................................. 2,500,000 2,600,175 North Carolina Medical Care Commission Hospital Revenue, Annie Penn Memorial Hospital Project, Pre-Refunded, 5.375%, 1/01/22 .................... 1,920,000 2,063,174 Annie Penn Memorial Hospital Project, Refunding, ETM, 5.25%, 1/01/12 ................... 1,940,000 2,033,159 Halifax Regional Medical Center Project, 5.00%, 8/15/24 ................................ 1,800,000 1,560,906 Mission St. Joseph's Health System Project, MBIA Insured, 5.125%, 10/01/28 ............. 5,000,000 5,127,700 Northeast Medical Center, AMBAC Insured, 5.50%, 11/01/30 ............................... 1,580,000 1,679,414 Rex Healthcare Project, AMBAC Insured, 5.00%, 6/01/17 .................................. 2,780,000 2,877,105 Southeastern Regional Medical Center, 6.25%, 6/01/29 ................................... 4,000,000 4,233,520 Southeastern Regional Medical Center, 5.375%, 6/01/32 .................................. 3,500,000 3,612,000 Transylvania Community Hospital Inc. Project, Refunding, 5.75%, 10/01/19 ............... 1,090,000 1,083,743 Wake County Hospital System Project, MBIA Insured, 5.375%, 10/01/26 .................... 10,825,000 11,335,723 Wilson Memorial Hospital Project, Refunding, AMBAC Insured, 5.625%, 11/01/18 ........... 5,000,000 5,185,600 North Carolina Medical Care Commission Revenue, FHA Insured Betsy Johnson Project, FSA Insured, 5.125%, 10/01/32 ....................... 4,500,000 4,692,465 Morehead Memorial Hospital, FSA Insured, 5.00%, 11/01/26 ............................... 7,110,000 7,379,896 Morehead Memorial Hospital, FSA Insured, 5.00%, 11/01/30 ............................... 5,650,000 5,833,794 Rowan Regional Medical Center, FSA Insured, 5.00%, 9/01/33 ............................. 5,900,000 6,080,717 North Carolina Municipal Power Agency No. 1 Catawba Electric Revenue, Series A, MBIA Insured, 5.25%, 1/01/19 ......................................................................... 5,000,000 5,352,950 5.00%, 1/01/20 ......................................................................... 2,000,000 2,063,780 North Carolina State COP, Western Carolina University Housing Project, AMBAC Insured, 5.00%, 6/01/33 ................................................................................... 1,500,000 1,549,155 North Carolina State Education Assistance Authority Revenue, Guaranteed, Student Loan, sub. lien, Series C, 6.35%, 7/01/16 ....................................................... 4,500,000 4,633,020 Pasquotank County COP, MBIA Insured, 5.00%, 6/01/25 .......................................... 1,400,000 1,446,928 Piedmont Triad Airport Authority Airport Revenue, Series A, FSA Insured, Pre-Refunded, 6.00%, 7/01/24 ................................................................................... 5,745,000 6,298,301 Pitt County COP, MBIA Insured, Pre-Refunded, 5.85%, 4/01/17 ............................................. 5,055,000 5,323,774 School Facilities Project, Series A, FSA Insured, 5.25%, 4/01/25 ....................... 1,670,000 1,779,101 School Facilities Project, Series B, AMBAC Insured, 5.00%, 4/01/29 ..................... 2,500,000 2,592,850 School Facilities Project, Series B, FSA Insured, 5.50%, 4/01/25 ....................... 1,000,000 1,066,950 Raleigh Combined Enterprise System Revenue, 5.00%, 3/01/31 ................................... 10,360,000 10,719,803 Raleigh COP, Downtown Improvement Projects, Series A, 5.00%, 2/01/29 ......................... 6,070,000 6,304,545 Raleigh Durham Airport Authority Airport Revenue, Series A, AMBAC Insured, 5.00%, 5/01/30 .......................................................... 5,000,000 5,189,800 FGIC Insured, 5.00%, 11/01/25 .......................................................... 6,480,000 6,702,005 FGIC Insured, 5.00%, 11/01/31 .......................................................... 8,000,000 8,224,640
Quarterly Statements of Investments | 137 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN NORTH CAROLINA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) NORTH CAROLINA (CONT.) Randolph County COP, FSA Insured, Pre-Refunded, 5.75%, 6/01/22 ............................... $ 5,500,000 $ 5,980,205 Robeson County Industrial Facilities and PCFA Revenue, Campbell Soup Co. Project, Refunding, 6.40%, 12/01/06 ........................................................................... 1,750,000 1,803,550 University of North Carolina Ashville Revenue, Refunding, Series A, AMBAC Insured, 5.00%, 6/01/27 ................................................................................... 1,200,000 1,241,628 University of North Carolina Greensboro Revenue, Housing and Dining System, Series G, MBIA Insured, Pre-Refunded, 6.00%, 4/01/26 ........ 2,040,000 2,265,583 Series A, FSA Insured, 5.00%, 4/01/26 .................................................. 4,940,000 5,143,232 University of North Carolina System Pool Revenue, AMBAC Insured, 5.00%, 4/01/29 .......................................................... 2,500,000 2,587,575 Series A, AMBAC Insured, 5.00%, 4/01/27 ................................................ 2,100,000 2,182,215 University of North Carolina University Revenues, 5.00%, 12/01/28 ........................................................................ 1,000,000 1,040,040 General, Refunding, Series A, 5.00%, 12/01/34 .......................................... 6,000,000 6,219,660 Series A, 5.00%, 12/01/25 .............................................................. 4,000,000 4,165,360 Wake County Industrial Facilities and PCFA Revenue, Carolina Power and Light Company Project, Refunding, 5.375%, 2/01/17 ................................................................ 8,000,000 8,468,480 Wilkes County COP, Public Improvements Project, FSA Insured, 5.375%, 12/01/20 ................ 1,000,000 1,076,890 Wilmington COP, AMBAC Insured, 5.00%, 9/01/29 .......................................................... 1,000,000 1,040,860 Refunding, Series A, AMBAC Insured, 5.00%, 6/01/32 ..................................... 5,310,000 5,488,310 Wilmington Water and Sewer System Revenue, Refunding, FSA Insured, 5.00%, 6/01/34 ............ 6,065,000 6,287,585 Winston-Salem Water and Sewer System Revenue, Pre-Refunded, 5.125%, 6/01/20 .................. 2,500,000 2,715,400 -------------- 463,717,682 -------------- U. S. TERRITORIES 15.8% Children's Trust Fund Puerto Rico Tobacco Settlement Revenue, Asset-Backed Bonds, Refunding, 5.50%, 5/15/39 ................................................................. 7,000,000 7,086,800 Puerto Rico Commonwealth GO, Public Improvement, FSA Insured, 5.125%, 7/01/30 ........................................................... 3,445,000 3,594,789 FSA Insured, Pre-Refunded, 5.125%, 7/01/30 ............................................. 4,805,000 5,197,040 Series A, 5.375%, 7/01/28 .............................................................. 4,925,000 5,081,270 Series A, 5.125%, 7/01/31 .............................................................. 3,265,000 3,308,261 Series A, Pre-Refunded, 5.00%, 7/01/27 ................................................. 5,000,000 5,412,400 Series A, Pre-Refunded, 5.375%, 7/01/28 ................................................ 2,405,000 2,631,431 Series A, Pre-Refunded, 5.125%, 7/01/31 ................................................ 1,000,000 1,081,590 Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Refunding, Series D, FSA Insured, 5.00%, 7/01/32 ....................................... 5,000,000 5,172,350 Refunding, Series H, 5.00%, 7/01/35 .................................................... 4,280,000 4,240,667 Series A, MBIA Insured, 5.00%, 7/01/38 ................................................. 2,000,000 2,049,160 Series D, Pre-Refunded, 5.375%, 7/01/36 ................................................ 5,000,000 5,475,350 Series D, Pre-Refunded, 5.25%, 7/01/38 ................................................. 3,000,000 3,263,520 Puerto Rico Commonwealth Infrastructure Financing Authority Special Tax Revenue, Series A, AMBAC Insured, Pre-Refunded, 5.00%, 7/01/28 ............................................... 10,000,000 10,449,500 Puerto Rico Electric Power Authority Power Revenue, Series II, 5.25%, 7/01/31 .............................................................. 6,000,000 6,211,860 Series RR, XLCA Insured, 5.00%, 7/01/30 ................................................ 1,000,000 1,041,670
138 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 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 HFC Revenue, MF Mortgage, Portfolio A-I, 7.50%, 4/01/22 .......................... $ 125,000 $ 125,090 Puerto Rico PBA Revenue, Guaranteed, Government Facilities, Series D, 5.375%, 7/01/33 .............................................................. 1,790,000 1,853,473 Series D, Pre-Refunded, 5.375%, 7/01/33 ................................................ 5,210,000 5,705,315 Series I, 5.00%, 7/01/36 ............................................................... 2,405,000 2,382,585 Puerto Rico Public Finance Corp. Revenue, Commonwealth Appropriation, Series E, Pre-Refunded, 5.70%, 8/01/25 .............................................................. 5,000,000 5,423,750 Virgin Islands PFAR, senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/18 ........................................................................ 2,000,000 2,081,300 5.625%, 10/01/25 ....................................................................... 1,575,000 1,635,670 -------------- 90,504,841 -------------- TOTAL LONG TERM INVESTMENTS (COST $529,591,790) .............................................. 554,222,523 -------------- SHORT TERM INVESTMENTS 1.4% BONDS 1.4% NORTH CAROLINA 1.4% (a)Charlotte-Mecklenberg Hospital Authority Health Care System Revenue, Series B, Weekly VRDN and Put, 3.02%, 1/15/26 ................................................................... 2,730,000 2,730,000 (a)North Carolina Medical Care Commission Hospital Revenue, Lexington Memorial Hospital Project, Refunding, Daily VRDN and Put, 2.95%, 4/01/10 .................................... 1,000,000 1,000,000 (a)North Carolina State GO, Refunding, Series B, Weekly VRDN and Put, 2.90%, 6/01/19 ............................... 900,000 900,000 Series G, Weekly VRDN and Put, 2.90%, 5/01/21 .......................................... 3,125,000 3,125,000 -------------- TOTAL SHORT TERM INVESTMENTS (COST $7,755,000) ............................................... 7,755,000 -------------- TOTAL INVESTMENTS (COST $537,346,790) 98.3% .................................................. 561,977,523 OTHER ASSETS, LESS LIABILITIES 1.7% .......................................................... 9,991,802 -------------- NET ASSETS 100.0% ............................................................................ $ 571,969,325 ==============
See Selected Portfolio Abbreviations on page 169. (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 | 139 See Notes to Statements of Investments. | FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN OHIO INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 102.1% BONDS 101.4% OHIO 98.7% Akron Bath Copley Joint Township Hospital District Revenue, Hospital Improvement Children's Hospital Center, FSA Insured, 5.00%, 11/15/22 .................................. $ 5,000,000 $ 5,198,950 Akron GO, Improvement, FGIC Insured, 5.00%, 12/01/20 ............................................................................... 2,150,000 2,265,692 12/01/21 ............................................................................... 2,255,000 2,371,651 12/01/22 ............................................................................... 1,185,000 1,242,212 Akron Income Tax Revenue, Community Learning Centers, Series A, FGIC Insured, 5.00%, 12/01/22 ............................................................................... 2,460,000 2,578,769 12/01/24 ............................................................................... 3,200,000 3,339,104 12/01/33 ............................................................................... 8,005,000 8,260,199 Akron Sewer System Revenue, MBIA Insured, Pre-Refunded, 5.55%, 12/01/16 ...................... 3,660,000 3,780,341 Anthony Wayne Local School District GO, Refunding, FSA Insured, 5.00%, 12/01/24 ................................................ 3,200,000 3,324,192 School Facilities Construction and Improvement, FSA Insured, 5.65%, 12/01/21 ........... 2,490,000 2,713,428 School Facilities Construction and Improvement, FSA Insured, 5.70%, 12/01/25 ........... 2,335,000 2,549,797 School Facilities Construction and Improvement, FSA Insured, 5.125%, 12/01/30 .......... 2,535,000 2,626,767 Archbold Area Local School District GO, AMBAC Insured, Pre-Refunded, 6.00%, 12/01/21 .................................................................................. 2,000,000 2,093,840 Athens City School District GO, School Facilities Construction and Improvement, FSA Insured, Pre-Refunded, 6.00%, 12/01/24 ............................................................. 2,345,000 2,629,800 Aurora City School District COP, MBIA Insured, Pre-Refunded, 6.10%, 12/01/19 ........................................................................ 1,825,000 2,021,863 6.15%, 12/01/24 ........................................................................ 1,670,000 1,853,232 Aurora City School District GO, FGIC Insured, Pre-Refunded, 5.80%, 12/01/16 .................. 1,075,000 1,096,500 Austintown Local School District GO, School Improvement, FSA Insured, 5.125%, 12/01/30 .................................................................................. 7,715,000 8,109,005 Avon Lake City School District GO, FGIC Insured, Pre-Refunded, 5.50%, 12/01/26 ............... 4,000,000 4,377,640 Avon Lake Water System Revenue, Series A, AMBAC Insured, Pre-Refunded, 5.75%, 10/01/26 .................................................................................. 2,020,000 2,221,838 Avon Local School District GO, AMBAC Insured, Pre-Refunded, 6.00%, 12/01/20 ........................................... 2,500,000 2,593,075 School Improvement, MBIA Insured, 5.25%, 12/01/23 ...................................... 1,000,000 1,069,930 School Improvement, MBIA Insured, 5.25%, 12/01/29 ...................................... 2,295,000 2,425,195 Beavercreek Local School District GO, FGIC Insured, 5.70%, 12/01/20 .......................... 8,125,000 8,389,387 Bluffton Exempted Village School District GO, Improvement, AMBAC Insured, 5.50%, 12/01/28 .................................................................................. 1,190,000 1,372,451 Bowling Green MFHR, Village Apartments, Refunding, Series A, GNMA Secured, 5.40%, 9/20/36 ................................................................................... 2,940,000 3,000,094 Brookville Local School District GO, FSA Insured, 5.25%, 12/01/22 ........................................................................ 1,075,000 1,153,196 5.00%, 12/01/31 ........................................................................ 3,000,000 3,099,720 Buckeye Local School District GO, Construction and Improvement Bonds, FGIC Insured, 5.50%, 12/01/25 ........................................................................... 750,000 802,523 Butler County GO, AMBAC Insured, Pre-Refunded, 5.75%, 12/01/16 ........................................... 1,000,000 1,034,310 Judgement Bonds, FSA Insured, 4.75%, 12/01/26 .......................................... 4,000,000 4,063,760 Canal Winchester Local School District GO, Refunding, MBIA Insured, 5.00%, 12/01/25 .......... 6,355,000 6,633,095
140 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN OHIO INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) OHIO (CONT.) Central Local School District GO, Classroom Facilities, FSA Insured, 5.75%, 12/01/22 ......... $ 1,555,000 $ 1,704,498 Chillicothe City School District GO, School Improvement, FGIC Insured, 5.00%, 12/01/32 .................................................................................. 7,395,000 7,671,425 Cincinnati City School District GO, Classroom Facilities Construction and Improvement, FSA Insured, 5.00%, 12/01/27 ........ 2,500,000 2,593,275 FSA Insured, 5.00%, 12/01/22 ........................................................... 9,510,000 9,919,786 Cincinnati Technical College Revenue, AMBAC Insured, 5.25%, 10/01/23 ........................................................................ 2,510,000 2,682,286 5.00%, 10/01/28 ........................................................................ 2,715,000 2,808,939 Circleville GO, Capital Facilities Improvement, AMBAC Insured, 5.625%, 12/01/20 .............. 2,035,000 2,213,714 Cleveland Municipal School District GO, FSA Insured, 5.00%, 12/01/27 ......................... 4,000,000 4,156,960 Cleveland State University General Receipt Revenue, FGIC Insured, 5.25%, 6/01/24 ......................................................................... 1,000,000 1,064,770 5.00%, 6/01/34 ......................................................................... 5,000,000 5,167,600 Cleveland Waterworks Revenue, Refunding and Improvement, Series I, FSA Insured, 5.00%, 1/01/28 ....................... 6,715,000 6,908,929 Series H, MBIA Insured, Pre-Refunded, 5.75%, 1/01/26 ................................... 1,000,000 1,021,850 Series I, FSA Insured, Pre-Refunded, 5.00%, 1/01/28 .................................... 4,785,000 4,995,157 Series K, FGIC Insured, Pre-Refunded, 5.00%, 1/01/22 ................................... 2,075,000 2,232,140 Series K, FGIC Insured, Pre-Refunded, 5.00%, 1/01/23 ................................... 4,285,000 4,609,503 Series K, FGIC Insured, Pre-Refunded, 5.00%, 1/01/25 ................................... 8,150,000 8,767,199 Cleveland-Cuyahoga County Port Authority Revenue, Student Housing, Euclid Avenue, Fenn Project, AMBAC Insured, 5.00%, 8/01/25 ................................................................................ 2,440,000 2,538,430 8/01/28 ................................................................................ 2,145,000 2,223,014 Clyde-Green Springs Exempt Village School District GO, School Facilities Construction, Refunding and Improvement, MBIA Insured, 5.125%, 12/01/32 ................................. 1,000,000 1,044,280 Columbus City School District GO, Linden Elementary Construction, FSA Insured, 5.00%, 12/01/28 .................................................................................. 900,000 924,813 Columbus Municipal Airport Authority Revenue, Airport Improvement, Port Columbus International, Series B, AMBAC Insured, 5.00%, 1/01/18 .................................... 3,565,000 3,686,673 Columbus Tax Increment Financing Revenue, Easton Project, AMBAC Insured, Pre-Refunded, 5.30%, 12/01/19 ........................... 1,500,000 1,608,915 Polaris Project, Series A, AMBAC Insured, 4.75%, 12/01/22 .............................. 1,385,000 1,421,980 Crawford County GO, Refunding, AMBAC Insured, 5.25%, 12/01/31 ................................ 1,330,000 1,394,931 Cuyahoga Community College District General Receipts Revenue, Series A, AMBAC Insured, 5.00%, 12/01/22 ............................................................................... 1,000,000 1,048,280 12/01/32 ............................................................................... 3,000,000 3,097,680 Cuyahoga County Hospital Revenue, University Hospitals Health System Inc., AMBAC Insured, 5.40%, 1/15/19 ......................................................................... 1,500,000 1,591,740 5.50%, 1/15/30 ......................................................................... 1,760,000 1,850,376 Cuyahoga County MFHR, Rockefeller Park Project, Series A, GNMA Secured, 5.75%, 1/20/29 ................................................................................... 1,000,000 1,041,220 Cuyahoga County Utility System Revenue, AMBAC Insured, 5.125%, 2/15/28 ......................................................... 1,000,000 1,035,670 Medical Center Co. Project, Refunding, Series B, MBIA Insured, 6.10%, 8/15/15 .......... 2,945,000 3,021,629
Quarterly Statements of Investments | 141 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN OHIO INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) OHIO (CONT.) Darke County GO, Real Estate Acquisition and Improvement, FGIC Insured, 5.125%, 12/01/27 .................................................................................. $ 1,020,000 $ 1,064,696 Dayton City School District GO, School Facilities Construction and Improvement, Series A, FGIC Insured, (a)4.75%, 12/01/25 ........................................................................ 9,400,000 9,530,002 5.00%, 12/01/29 ........................................................................ 8,275,000 8,551,468 Deerefield Township Tax Increment Revenue, Refunding, Series B, MBIA Insured, 5.00%, 12/01/25 .................................................................................. 1,000,000 1,036,980 Delaware City School District GO, FGIC Insured, Pre-Refunded, 5.75%, 12/01/15 ................ 1,640,000 1,656,400 Dover Municipal Electric System Revenue, FGIC Insured, 6.00%, 12/01/19 ....................... 1,625,000 1,643,200 Eastlake GO, Capital Facilities, MBIA Insured, 5.00%, 12/01/27 ............................... 1,950,000 2,014,994 Eaton City School District GO, FGIC Insured, 5.00%, 12/01/25 ................................. 1,250,000 1,301,763 Edgewood City School District GO, School Improvement, Refunding, FSA Insured, 5.00%, 12/01/24 .................................................................................. 2,220,000 2,326,715 Fairfield City School District GO, FGIC Insured, Pre-Refunded, 6.00%, 12/01/20 ............... 1,000,000 1,000,000 Fairfield County GO, FGIC Insured, 5.00%, 12/01/20 ........................................... 1,600,000 1,681,504 Fairless Ohio Local School District GO, Various Purpose School Facilities Construction, FSA Insured, 5.00%, 12/01/28 .............................................................. 2,085,000 2,158,246 Field Local School District GO, School Facilities Construction and Improvement, AMBAC Insured, 5.00%, 12/01/27 ............................................................ 1,290,000 1,345,444 Finneytown Local School District GO, FGIC Insured, 5.80%, 12/01/24 ........................... 1,980,000 2,110,838 (a)Franklin County Convention Facilities Authority Revenue, Tax and Lease Revenue Anticipation Bonds, Refunding, AMBAC Insured, 5.00%, 12/01/23 ............................................................................... 6,910,000 7,293,643 12/01/24 ............................................................................... 7,255,000 7,633,711 12/01/25 ............................................................................... 5,615,000 5,894,178 Franklin County Hospital Revenue, Children's Hospital Project, AMBAC Insured, Pre-Refunded, 5.50%, 5/01/21 ............... 3,365,000 3,716,373 Children's Hospital Project, AMBAC Insured, Pre-Refunded, 5.50%, 5/01/28 ............... 4,265,000 4,710,351 Holy Cross Health Systems, AMBAC Insured, 5.875%, 6/01/21 .............................. 2,500,000 2,582,025 OhioHealth Corp., Refunding, Series C, MBIA Insured, 5.00%, 5/15/33 .................... 5,250,000 5,374,320 Franklin GO, MBIA Insured, 5.25%, 12/01/27 ................................................... 1,500,000 1,577,835 Garfield Heights GO, Various Purpose, Refunding and Improvement, FGIC Insured, 5.00%, 12/01/27 .................................................................................. 2,655,000 2,764,200 Georgetown Exempted Village School District GO, Classroom Facilities, FSA Insured, 5.125%, 12/01/31 .................................................................................. 1,000,000 1,049,560 (a)Graham Local School District GO, School Improvement, Refunding, MBIA Insured, 5.00%, 12/01/33 .................................................................................. 6,055,000 6,286,543 Grand Valley Local School District GO, Classroom Facilities Improvement, FGIC Insured, 5.00%, 12/01/24 ........................................................................... 1,300,000 1,350,453 Greater Cleveland Regional Transit Authority GO, Capital Improvement, Series A, MBIA Insured, 5.125%, 12/01/21 ............................................................ 1,750,000 1,838,708 Green Community Learning Centers Income Tax Revenue, MBIA Insured, 5.00%, 12/01/27 ............................................................................... 1,205,000 1,252,284 12/01/28 ............................................................................... 1,265,000 1,311,919 12/01/32 ............................................................................... 2,675,000 2,766,592
142 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN OHIO INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) OHIO (CONT.) Greene County GO, AMBAC Insured, 5.00%, 12/01/22 ............................................................................... $ 1,475,000 $ 1,538,558 12/01/28 ............................................................................... 2,620,000 2,702,556 Greene County Sewer System Revenue, Governmental Enterprise, AMBAC Insured, Pre-Refunded, 5.625%, 12/01/25 .......................................... 1,890,000 2,087,373 MBIA Insured, Pre-Refunded, 5.25%, 12/01/25 ............................................ 5,000,000 5,364,500 Greene County Water System Revenue, Governmental Enterprise, MBIA Insured, 5.25%, 12/01/21 ................................. 5,400,000 5,763,204 Series A, FGIC Insured, Pre-Refunded, 6.125%, 12/01/21 ................................. 2,100,000 2,255,169 Guernsey County GO, Refunding, FGIC Insured, 5.00%, 12/01/23 ................................. 2,690,000 2,800,962 Hamilton County Convention Facilities Authority Revenue, FGIC Insured, 5.00%, 12/01/24 .......................................................... 2,795,000 2,922,787 FGIC Insured, 5.00%, 12/01/28 .......................................................... 5,400,000 5,600,286 second lien, FGIC Insured, 5.00%, 12/01/33 ............................................. 7,235,000 7,451,833 Hamilton County Hospital Facilities Revenue, Cincinnati Children's Hospital, Series J, FGIC Insured, 5.25%, 5/15/34 .............................................................. 5,000,000 5,243,000 Hamilton County Sales Tax Revenue, Series B, AMBAC Insured, 5.25%, 12/01/32 ........................................................................ 19,720,000 20,742,876 5.60%, 12/01/32 ........................................................................ 1,200,000 1,295,616 Hamilton County Sewer System Revenue, Improvement, Series A, FGIC Insured, Pre-Refunded, 6.05%, 12/01/15 ..................... 3,010,000 3,070,200 Improvement, Series A, MBIA Insured, Pre-Refunded, 5.25%, 12/01/21 ..................... 1,000,000 1,088,740 Metropolitan Sewer District Improvement, Series B, MBIA Insured, 5.00%, 12/01/30 ....... 4,000,000 4,166,000 Hamilton GO, One Renaissance Center, Series A, AMBAC Insured, 5.25%, 11/01/18 ............................................................................... 1,010,000 1,081,023 11/01/19 ............................................................................... 1,015,000 1,087,481 11/01/20 ............................................................................... 1,120,000 1,196,933 11/01/21 ............................................................................... 1,180,000 1,258,494 Hamilton Wastewater System Revenue, Series A, FSA Insured, Pre-Refunded, 5.90%, 10/15/21 ........................................................................ 3,040,000 3,139,925 5.20%, 10/15/23 ........................................................................ 7,275,000 7,719,502 Heath City School District GO, School Improvement, Series A, FGIC Insured, Pre-Refunded, 5.60%, 12/01/21 ........................................................................ 1,000,000 1,094,880 5.50%, 12/01/27 ........................................................................ 1,170,000 1,275,698 Highland Local School District GO, School Improvement, FSA Insured, 5.00%, 12/01/23 ............................................................................... 3,680,000 3,812,774 12/01/26 ............................................................................... 3,675,000 3,788,006 Hilliard School District GO, Refunding, FGIC Insured, 6.55%, 12/01/05 ............................................... 500,000 500,000 School Improvement, FGIC Insured, Pre-Refunded, 5.75%, 12/01/28 ........................ 4,000,000 4,440,400 School Improvement, Series A, FGIC Insured, 5.25%, 12/01/28 ............................ 3,010,000 3,166,189 (a)Huber Heights Water System Revenue, Refunding and Improvement, MBIA Insured, 5.00%, 12/01/27 ............................................................................... 3,205,000 3,348,520 12/01/30 ............................................................................... 2,250,000 2,343,375 Hudson City School District COP, MBIA Insured, 5.00%, 6/01/34 ................................ 6,720,000 6,945,254 Independence Local School District GO, FGIC Insured, 5.25%, 12/01/21 ......................... 1,390,000 1,490,330 Jackson Center Local School District Shelby County GO, Facilities Construction and Improvement, MBIA Insured, 5.00%, 12/01/28 ................................................ 1,175,000 1,212,024
Quarterly Statements of Investments | 143 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN OHIO INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) OHIO (CONT.) Jackson City School District GO, School Improvement, MBIA Insured, Pre-Refunded, 5.25%, 12/01/27 .................................................................................. $ 3,000,000 $ 3,252,300 Jackson Local School District GO, Stark and Summit Counties Local School District, FSA Insured, Pre-Refunded, 5.50%, 12/01/20 ............................................. 4,000,000 4,361,360 FSA Insured, Pre-Refunded, 5.625%, 12/01/25 ............................................ 3,500,000 3,836,070 MBIA Insured, Pre-Refunded, 5.50%, 12/01/21 ............................................ 3,060,000 3,188,795 Jefferson Local School District Madison County School Construction GO, FGIC Insured, 5.00%, 12/01/25 ........................................................................... 1,200,000 1,254,792 Jonathan Alder Local School District GO, School Facilities Construction and Improvement, MBIA Insured, 4.75%, 12/01/22 ........................................................................ 1,105,000 1,130,050 5.00%, 12/01/27 ........................................................................ 6,195,000 6,401,479 5.00%, 12/01/30 ........................................................................ 3,320,000 3,422,588 Kenston Local School District GO, School Improvement, MBIA Insured, 5.00%, 12/01/24 ............................................................................... 2,380,000 2,477,961 12/01/25 ............................................................................... 2,500,000 2,598,050 Kettering City School District GO, School Improvement, FSA Insured, 5.00%, 12/01/28 ............................................................................... 2,970,000 3,080,157 12/01/31 ............................................................................... 2,595,000 2,685,695 Keystone Local School District Lorain County GO, School Improvement, FSA Insured, 5.00%, 12/01/30 .................................................................................. 6,170,000 6,394,465 Lake County Hospital Facilities Revenue, Lake Hospital System Inc., AMBAC Insured, 5.00%, 8/15/23 ................................................................................... 1,500,000 1,537,410 Lake Ohio Local School District GO, MBIA Insured, 5.30%, 12/01/21 ........................................................................ 1,575,000 1,689,408 5.375%, 12/01/25 ....................................................................... 1,900,000 2,036,097 Lakewood City School District GO, School Improvement, FSA Insured, 5.125%, 12/01/31 .......... 21,900,000 22,985,364 Lakota Local District GO, AMBAC Insured, Pre-Refunded, 6.125%, 12/01/17 ...................... 3,200,000 3,200,000 Lebanon City School District GO, FSA Insured, 5.00%, 12/01/29 ........................................................... 6,250,000 6,422,312 School Construction, Refunding, FSA Insured, 5.00%, 12/01/25 ........................... 1,050,000 1,091,822 Licking County Joint Vocational School District GO, School Facilities Construction and Improvement, MBIA Insured, 5.00%, 12/01/21 ........................................................................ 2,200,000 2,301,574 4.75%, 12/01/23 ........................................................................ 2,230,000 2,275,157 Licking Heights Local School District GO, School Facilities Construction and Improvement, Refunding, Series A, MBIA Insured, 5.00%, 12/01/27 ..................................... 1,275,000 1,329,800 Refunding, Series A, MBIA Insured, 5.00%, 12/01/32 ..................................... 2,645,000 2,744,135 Series A, FGIC Insured, Pre-Refunded, 5.625%, 12/01/28 ................................. 4,000,000 4,384,080 Logan Hocking Local School District GO, Construction and Improvement, MBIA Insured, Pre-Refunded, 5.00%, 12/01/22 ............................................ 1,200,000 1,290,444 MBIA Insured, Pre-Refunded, 5.00%, 12/01/29 ............................................ 390,000 419,394 Refunding, MBIA Insured, 5.00%, 12/01/29 ............................................... 610,000 630,703 London City School District GO, School Facilities Construction and Improvement, FGIC Insured, 5.00%, 12/01/22 ........................................................................ 700,000 726,376 Pre-Refunded, 5.00%, 12/01/29 .......................................................... 1,500,000 1,613,055
144 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN OHIO INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) OHIO (CONT.) Lorain County GO, Sewer System Improvement, MBIA Insured, 5.00%, 12/01/19 .................... $ 1,640,000 $ 1,722,804 Lorain County Health Facilities Revenue, Catholic Healthcare Partners, Series A, AMBAC Insured, 5.50%, 9/01/29 ............................................................. 6,250,000 6,612,687 Lorain County Hospital Revenue, Catholic Healthcare Partners, Refunding, Series B, MBIA Insured, 5.50%, 9/01/27 .............................................................. 5,000,000 5,248,950 Lorain GO, Urban Renewal, MBIA Insured, 5.70%, 12/01/28 ...................................... 1,050,000 1,141,875 Louisville City School District GO, FGIC Insured, 5.00%, 12/01/24 ............................ 3,500,000 3,618,790 Loveland City School District GO, Series A, MBIA Insured, Pre-Refunded, 5.00%, 12/01/24 .................................................................................. 4,000,000 4,268,720 Lucas County GO, 8.00%, 12/01/06 ............................................................................... 120,000 125,370 12/01/08 ............................................................................... 110,000 123,466 12/01/09 ............................................................................... 120,000 138,539 12/01/10 ............................................................................... 220,000 261,083 Lucas County Hospital Revenue, Promedica Healthcare Obligation Group, MBIA Insured, 5.75%, 11/15/14 .......................................................... 300,000 312,159 Refunding, AMBAC Insured, 5.375%, 11/15/29 ............................................. 750,000 791,145 Refunding, MBIA Insured, ETM, 5.75%, 11/15/14 .......................................... 4,460,000 4,646,740 Mad River Local School District GO, Classroom Facilities, FGIC Insured, 5.125%, 12/01/24 .................................................................................. 4,180,000 4,388,833 Madison Local School District Butler County GO, MBIA Insured, 5.75%, 12/01/26 .......................................................... 1,000,000 1,084,400 School Improvement, FGIC Insured, 5.60%, 12/01/26 ...................................... 1,120,000 1,218,515 Mahoning County Hospital Facilities Revenue, Western Reserve Care, MBIA Insured, ETM, 5.50%, 10/15/25 ........................................................................... 4,750,000 5,092,000 Mahoning County Sewer System Revenue, AMBAC Insured, 5.375%, 12/01/18 ........................ 1,905,000 2,033,568 Marietta Water Revenue, AMBAC Insured, Pre-Refunded, 5.95%, 12/01/21 ......................... 3,875,000 4,017,367 Marion County City School District GO, School Facilities Construction and Improvement Project, FSA Insured, 5.55%, 12/01/20 ........................................................................ 1,000,000 1,083,810 5.625%, 12/01/22 ....................................................................... 1,100,000 1,195,381 Marion County GO, AMBAC Insured, 5.05%, 12/01/31 ............................................. 1,500,000 1,548,990 Martins Ferry City School District GO, School Facilities Construction and Improvement, FSA Insured, 5.00%, 12/01/32 .............................................................. 3,610,000 3,745,303 Marysville Exempted Village School District COP, School Facilities Project, MBIA Insured, Pre-Refunded, 5.25%, 12/01/28 ............................................................................... 2,120,000 2,346,946 12/01/30 ............................................................................... 2,650,000 2,933,682 Marysville Exempted Village School District GO, FSA Insured, 5.30%, 12/01/21 ........................................................... 2,000,000 2,126,400 FSA Insured, 5.35%, 12/01/25 ........................................................... 2,010,000 2,153,755 FSA Insured, 5.375%, 12/01/29 .......................................................... 2,465,000 2,633,680 Refunding, MBIA Insured, 5.00%, 12/01/29 ............................................... 1,000,000 1,031,510 Refunding, School, FSA Insured, 5.00%, 12/01/23 ........................................ 1,135,000 1,193,316 Refunding, School, FSA Insured, 5.00%, 12/01/24 ........................................ 2,240,000 2,347,677 Refunding, School, FSA Insured, 5.00%, 12/01/25 ........................................ 1,075,000 1,124,020 School Improvement, AMBAC Insured, Pre-Refunded, 6.00%, 12/01/29 ....................... 2,890,000 3,240,990
Quarterly Statements of Investments | 145 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN OHIO INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) OHIO (CONT.) Mason City School District GO, School Improvement, FSA Insured, 5.00%, 12/01/31 ........................................................... $ 5,000,000 $ 5,174,750 MBIA Insured, Pre-Refunded, 5.00%, 12/01/20 ............................................ 5,495,000 5,909,158 Maumee City School District GO, School Facilities Construction and Improvement, FSA Insured, 5.00%, 12/01/27 .............................................................. 3,610,000 3,744,689 Medina City School District GO, Refunding, MBIA Insured, 5.00%, 12/01/27 ..................... 2,015,000 2,093,686 Medina GO, 5.00%, 12/01/22 ................................................................... 1,100,000 1,162,370 Miami University General Receipts Revenue, Refunding, AMBAC Insured, 5.00%, 12/01/22 .................................................................................. 1,675,000 1,755,869 Middletown City School District GO, FGIC Insured, 5.00%, 12/01/31 ............................ 14,975,000 15,472,769 Milford Exempted Village School District GO, School Improvement, FSA Insured, 5.00%, 12/01/22 ........................................................................ 2,000,000 2,075,360 5.125%, 12/01/30 ....................................................................... 7,325,000 7,590,165 Minerva Local School District GO, Classroom Facilities, MBIA Insured, 5.30%, 12/01/29 ........ 1,300,000 1,375,335 Minster School District School Facilities and Construction GO, FSA Insured, Pre-Refunded, 5.70%, 12/01/23 ........................................................................ 3,190,000 3,533,978 5.75%, 12/01/27 ........................................................................ 3,260,000 3,618,926 Monroe Local School District GO, AMBAC Insured, 5.00%, 12/01/23 .............................. 1,000,000 1,041,250 Morley Library District GO, Lake County District Library, Library Improvement, AMBAC Insured, 4.75%, 12/01/21 ............................................................ 1,000,000 1,025,700 New Albany Community Authority Community Facilities Revenue, Refunding, Series B, AMBAC Insured, 5.125%, 10/01/21 ....................................................................... 3,000,000 3,159,300 5.20%, 10/01/24 ........................................................................ 5,000,000 5,283,350 New Lexington HDC Mortgage Revenue, Lincoln Park, Refunding, Series A, MBIA Insured, 5.85%, 1/01/21 ............................................................................ 880,000 898,146 Newark City School District GO, School Improvement, Series A, FGIC Insured, 5.00%, 12/01/33 .................................................................................. 5,535,000 5,737,194 Nordonia Hills Local School District GO, School Improvement, AMBAC Insured, 5.45%, 12/01/25 .................................................................................. 3,035,000 3,272,853 Oak Hills Local School District GO, MBIA Insured, Pre-Refunded, 5.45%, 12/01/21 .............. 5,000,000 5,258,050 Ohio Capital Corp. HMR, Refunding, Series G, MBIA Insured, 6.35%, 7/01/22 ...................................... 1,940,000 1,954,938 Westview Apartments, Refunding, Series A, MBIA Insured, 6.125%, 1/01/15 ................ 1,440,000 1,448,582 Westview Apartments, Refunding, Series A, MBIA Insured, 6.25%, 1/01/23 ................. 2,565,000 2,602,500 Ohio Center Local Government Capital Asset Financing Program Fractionalized Institute GO, FSA Insured, 4.875%, 12/01/18 ....................................................................... 1,255,000 1,316,332 5.25%, 12/01/23 ........................................................................ 1,410,000 1,512,563 Ohio HFA, MFHR, Wind River Apartment Project, Series A, GNMA Secured, 5.65%, 5/01/32 ............. 2,035,000 2,085,651 RMR, Series C, GNMA Secured, 5.75%, 9/01/30 ............................................ 1,570,000 1,597,240 Ohio Municipal Electric Generation Agency Revenue, Joint Venture 5, CBI, Refunding, AMBAC Insured, 5.00%, 2/15/23 ............................................................. 3,000,000 3,130,920 Ohio State Air Quality Development Authority Revenue, Cincinnati Gas and Electric, Refunding, Series B, MBIA Insured, 5.45%, 1/01/24 ......... 3,500,000 3,506,895 JMG Funding LP Project, AMBAC Insured, 5.625%, 10/01/22 ................................ 6,875,000 7,174,819 Ohio Power Co., Refunding, Series C, AMBAC Insured, 5.15%, 5/01/26 ..................... 9,075,000 9,512,687
146 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN OHIO INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) OHIO (CONT.) Ohio State Building Authority Revenue, Adult Correctional Facilities, Series A, AMBAC Insured, Pre-Refunded, 5.60%, 4/01/16 ............................................................................. $ 2,000,000 $ 2,080,740 State Facilities, Administration Building Fund Project, Refunding, Series A, FSA Insured, 5.00%, 4/01/22 ............................................................. 3,100,000 3,222,295 Ohio State Department of Transportation COP, Panhandle Rail Line Project, FSA Insured, 6.50%, 4/15/12 ............................................................................ 890,000 892,252 Ohio State GO, Common Schools, Series B, 4.625%, 9/15/22 ..................................... 5,000,000 5,091,050 Ohio State Higher Educational Facility Commission Revenue, FGIC Insured, 5.00%, 5/01/23 ........................................................... 8,460,000 8,826,403 Higher Educational Facility Oberlin College, AMBAC Insured, 5.00%, 10/01/26 ............ 8,000,000 8,329,440 University of Dayton Project, XLCA Insured, 5.00%, 12/01/34 ............................ 8,500,000 8,798,605 Xavier University Higher Educational Facility, MBIA Insured, 5.375%, 5/15/22 ........... 3,500,000 3,658,165 Ohio State Higher Educational Facility Revenue, Case Western Reserve University Project, Series A, AMBAC Insured, 5.00%, 12/01/34 ...... 4,935,000 5,092,328 Otterbein College Project, 5.00%, 12/01/25 ............................................. 2,205,000 2,305,548 Otterbein College Project, 5.00%, 12/01/35 ............................................. 3,225,000 3,335,198 Ohio State Turnpike Commission Turnpike Revenue, AMBAC Insured, 5.25%, 2/15/31 ............... 16,425,000 17,042,744 Ohio State University General Receipts Athens Revenue, FSA Insured, 5.00%, 12/01/24 ........................................................... 3,025,000 3,141,160 MBIA Insured, 5.00%, 12/01/24 .......................................................... 2,155,000 2,253,527 Ohio State University General Receipts Revenue, Series A, 5.125%, 12/01/31 ............................................................. 2,500,000 2,627,975 State University Ohio, Series B, MBIA Insured, 5.00%, 6/01/33 .......................... 5,255,000 5,420,480 Ohio State Water Development Authority Pollution Control Facilities Revenue, Pennsylvania Power Co. Project, Refunding, AMBAC Insured, 6.15%, 8/01/23 ............... 3,420,000 3,472,292 Water Control Loan Fund, Water Quality Series, MBIA Insured, Pre-Refunded, 5.125%, 6/01/19 ............................................................................. 5,000,000 5,227,000 Ohio State Water Development Authority Revenue, Drinking Water Fund, Leverage, Pre-Refunded, 5.00%, 6/01/23 ............................ 2,255,000 2,434,070 Pure Water, Refunding and Improvement, AMBAC Insured, 5.50%, 12/01/11 .................. 270,000 270,351 Pure Water, Refunding and Improvement, AMBAC Insured, 5.50%, 12/01/18 .................. 385,000 385,501 Pure Water, Series I, AMBAC Insured, ETM, 7.00%, 12/01/09 .............................. 1,790,000 1,903,486 Olentangy Local School District GO, BIG Insured, 7.75%, 12/01/08 ........................................................... 375,000 421,444 BIG Insured, 7.75%, 12/01/09 ........................................................... 375,000 433,853 BIG Insured, 7.75%, 12/01/10 ........................................................... 375,000 444,735 FSA Insured, 5.00%, 12/01/25 ........................................................... 1,835,000 1,898,656 FSA Insured, 5.00%, 12/01/30 ........................................................... 4,000,000 4,116,000 School Facilities Construction and Improvement, FSA Insured, Pre-Refunded, 5.625%, 12/01/27 ............................................................................ 4,500,000 4,932,090 School Facilities Construction and Improvement, Series A, FGIC Insured, 5.25%, 12/01/32 ............................................................................ 11,200,000 11,835,712 Ottawa and Glandorf Local School District GO, School Facilities Construction and Improvement, MBIA Insured, 5.25%, 12/01/23 ................................................ 2,175,000 2,317,484 Perrysburg Exempted Village School District GO, Series B, FSA Insured, 5.00%, 12/01/25 .................................................................................. 5,000,000 5,206,250
Quarterly Statements of Investments | 147 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN OHIO INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) OHIO (CONT.) Pickerington Local School District GO, AMBAC Insured, 5.00%, 12/01/25 ......................................................... $ 7,000,000 $ 7,288,750 School Facilities Construction and Improvement, FGIC Insured, 5.00%, 12/01/28 .......... 3,000,000 3,082,710 Plain Local School District GO, FGIC Insured, 6.00%, 12/01/25 ........................................................................ 800,000 886,040 Pre-Refunded, 6.00%, 12/01/25 .......................................................... 3,700,000 4,148,477 Plainesville City School District GO, School Improvement, FGIC Insured, 5.00%, 12/01/28 .................................................................................. 2,515,000 2,612,758 Princeton City School District GO, MBIA Insured, 5.00%, 12/01/25 ............................................................................... 1,700,000 1,770,397 12/01/26 ............................................................................... 2,725,000 2,832,256 12/01/30 ............................................................................... 1,830,000 1,893,300 Ridgewood Local School District GO, School Facilities Improvement, FSA Insured, 6.00%, 12/01/24 .................................................................................. 1,730,000 1,929,175 Rittman Exempted Village School District GO, School Improvement, FSA Insured, 5.125%, 12/01/31 .................................................................................. 1,000,000 1,037,680 Riverside Local School District GO, School Facilities Construction and Improvement, MBIA Insured, Pre-Refunded, 5.75%, 12/01/22 ............................................... 1,000,000 1,110,100 Rural Lorain County Water Authority Water Resource Revenue, AMBAC Insured, 5.875%, 10/01/24 .................................................................................. 3,100,000 3,369,669 Salem GO, AMBAC Insured, 6.50%, 12/01/06 ..................................................... 800,000 810,704 Shaker Heights GO, Urban Renewal, Refunding, AMBAC Insured, 5.00%, 12/01/21 ........................................................................ 1,225,000 1,288,369 5.25%, 12/01/26 ........................................................................ 725,000 768,130 Sidney City School District GO, School Improvement, FGIC Insured, 5.125%, 12/01/28 ......................................................... 1,425,000 1,482,228 Refunding, Series B, FGIC Insured, 5.25%, 12/01/23 ..................................... 1,780,000 1,890,965 Refunding, Series B, FGIC Insured, 5.25%, 12/01/28 ..................................... 1,000,000 1,051,890 South Range Local School District GO, MBIA Insured, 6.15%, 12/01/18 .......................... 375,000 375,593 South-Western City School District of Ohio Franklin and Pickway Counties GO, FGIC Insured, ETM, 7.875%, 12/01/06 ............................................................................... 600,000 627,390 12/01/07 ............................................................................... 600,000 652,542 Southwest Regional Water District Water Revenue, MBIA Insured, Pre-Refunded, 6.00%, 12/01/15 ............................................................................... 1,000,000 1,010,000 12/01/20 ............................................................................... 700,000 707,000 Springboro Sewer System Revenue, Mortgage, MBIA Insured, 5.00%, 6/01/25 ................................................................................ 1,000,000 1,043,560 6/01/27 ................................................................................ 1,095,000 1,137,968 St. Henry Local Consolidated School District GO, MBIA Insured, 5.75%, 12/01/22 ............... 1,515,000 1,660,652 Steubenville City School District GO, School Facilities and Implementation, MBIA Insured, 5.60%, 12/01/22 ........................................................................... 1,500,000 1,626,255 Streetsboro City School District GO, School Improvement, MBIA Insured, 5.00%, 12/01/25 .................................................................................. 2,500,000 2,580,875 Strongsville City School District COP, CIFG Insured, 5.00%, 12/01/34 ......................... 2,355,000 2,432,244 Struthers City School District GO, Refunding, AMBAC Insured, 5.50%, 12/01/22 ................. 1,950,000 2,100,774
148 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN OHIO INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) OHIO (CONT.) Summit County GO, Sanitary Sewer System Improvement, FGIC Insured, Pre-Refunded, 5.25%, 12/01/21 ........................................................................... $ 4,505,000 $ 4,928,425 Swanton Local School District GO, School Improvement, FGIC Insured, 5.25%, 12/01/25 .......... 1,895,000 2,005,024 Sycamore Community City School District COP, Blue Ash Elementary School Project, AMBAC Insured, 5.125%, 12/01/25 ........................................................... 1,000,000 1,044,760 Sylvania City School District GO, FGIC Insured, Pre-Refunded, 5.75%, 12/01/22 ............................................ 1,500,000 1,515,000 Refunding, FGIC Insured, 5.00%, 12/01/22 ............................................... 1,550,000 1,616,790 Various Purpose, FGIC Insured, 5.30%, 12/01/20 ......................................... 2,225,000 2,385,400 Toledo City School District GO, School Facilities Improvement, FSA Insured, 5.00%, 12/01/23 ........................................................... 1,500,000 1,566,225 Series B, FGIC Insured, 5.00%, 12/01/27 ................................................ 5,425,000 5,634,839 Toledo GO, Ltd. Tax, 7.375%, 12/01/05 ....................................................................... 650,000 650,000 7.375%, 12/01/06 ....................................................................... 625,000 648,894 AMBAC Insured, Pre-Refunded, 5.95%, 12/01/15 ........................................... 3,715,000 3,789,300 AMBAC Insured, Pre-Refunded, 6.00%, 12/01/16 ........................................... 1,000,000 1,046,920 Toledo Sewer System Revenue, AMBAC Insured, 5.00%, 11/15/22 ............................................................................... 1,000,000 1,048,030 11/15/23 ............................................................................... 1,000,000 1,045,980 Toledo Waterworks Revenue, MBIA Insured, 5.00%, 11/15/30 ..................................... 6,425,000 6,664,460 Trenton Water System Revenue, Improvement, FSA Insured, 5.125%, 12/01/34 ..................... 2,750,000 2,882,110 Tri-Valley Local School District GO, FGIC Insured, 5.25%, 12/01/29 ........................... 8,530,000 8,935,346 Trotwood-Madison City School District GO, School Improvement, FGIC Insured, 5.375%, 12/01/22 .................................................................................. 1,685,000 1,817,576 Trumbull County GO, Refunding, MBIA Insured, 5.20%, 12/01/20 ................................. 1,475,000 1,581,067 Twinsburg GO, Golf Course, Refunding, FGIC Insured, 5.00%, 12/01/21 .................................. 1,000,000 1,040,360 Park Land and Conservation, FGIC Insured, 5.00%, 12/01/21 .............................. 1,000,000 1,040,360 Union County GO, MBIA Insured, 5.00%, 12/01/33 ............................................... 2,895,000 2,967,780 University of Akron General Receipts Revenue, FGIC Insured, 4.75%, 1/01/25 ......................................................................... 1,080,000 1,103,209 5.00%, 1/01/28 ......................................................................... 1,475,000 1,527,436 5.00%, 1/01/35 ......................................................................... 5,250,000 5,425,875 Pre-Refunded, 5.70%, 1/01/24 ........................................................... 7,050,000 7,711,783 Pre-Refunded, 5.75%, 1/01/29 ........................................................... 1,500,000 1,643,625 University of Cincinnati COP, Jefferson Avenue Residence Hall, MBIA Insured, 5.125%, 6/01/28 ................................................................................... 7,400,000 7,621,260 University of Cincinnati General Receipts Revenue, AMBAC Insured, 5.00%, 6/01/31 .......................................................... 1,350,000 1,390,082 Series A, AMBAC Insured, 5.00%, 6/01/22 ................................................ 1,610,000 1,691,772 Series A, AMBAC Insured, 5.00%, 6/01/23 ................................................ 1,845,000 1,934,704 Series A, AMBAC Insured, 5.00%, 6/01/24 ................................................ 1,940,000 2,028,697 Series A, AMBAC Insured, 5.00%, 6/01/25 ................................................ 2,005,000 2,092,338 Series AD, MBIA Insured, Pre-Refunded, 5.125%, 6/01/20 ................................. 1,500,000 1,541,655 Series W, MBIA Insured, Pre-Refunded, 5.85%, 6/01/16 ................................... 1,630,000 1,666,268
Quarterly Statements of Investments | 149 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN OHIO INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) OHIO (CONT.) Upper Arlington County School District GO, MBIA Insured, Pre-Refunded, 5.25%, 12/01/22 .................................................................................. $ 5,000,000 $ 5,149,900 Upper Scioto Valley Local School District GO, School Facilities Construction and Improvement, FGIC Insured, 5.25%, 12/01/25 ................................................ 1,160,000 1,219,810 Van Wert City School District GO, School Improvement, FGIC Insured, 5.00%, 12/01/27 ............................................................................... 4,805,000 4,965,151 12/01/30 ............................................................................... 2,500,000 2,577,250 Wadsworth City School District GO, FGIC Insured, 5.75%, 12/01/22 ............................. 1,200,000 1,308,456 Warren City School District GO, School Improvement, FGIC Insured, 5.00%, 12/01/28 ............ 3,000,000 3,111,270 Warrensville Heights City School District GO, School Improvement, FGIC Insured, 5.625%, 12/01/20 ....................................................................... 3,500,000 3,813,460 5.75%, 12/01/24 ........................................................................ 2,750,000 3,014,385 Washington Court House GO, School Improvement, FGIC Insured, 5.00%, 12/01/29 ................. 2,205,000 2,298,316 Waterville GO, Refunding, MBIA Insured, 5.05%, 12/01/26 ...................................... 1,085,000 1,126,371 Wausen Exempted Village School District GO, School Improvement, MBIA Insured, Pre-Refunded, 5.50%, 12/01/17 ............................................................. 1,800,000 1,875,546 Wayne Local School District GO, Warren County, AMBAC Insured, Pre-Refunded, 6.10%, 12/01/24 .................................................................................. 1,800,000 1,868,742 West Chester Township GO, AMBAC Insured, 5.00%, 12/01/25 ..................................... 1,500,000 1,548,525 West Muskingum Local School District School Facilities GO, FGIC Insured, 5.00%, 12/01/24 .................................................................................. 2,750,000 2,869,542 Westfall Local School District GO, School Facilities Construction Improvement, FGIC Insured, 6.00%, 12/01/22 ........................................................................... 2,850,000 3,146,086 Wheelersburgs Local School District GO, School Improvement, FSA Insured, 5.00%, 12/01/32 .................................................................................. 1,400,000 1,452,472 Wilmington Water Revenue, first mortgage, System, AMBAC Insured, 5.25%, 6/15/29 ......................................................................... 3,320,000 3,465,117 Pre-Refunded, 6.00%, 6/15/21 ........................................................... 2,510,000 2,571,821 Woodmore Local School District GO, Refunding, AMBAC Insured, 5.65%, 12/01/08 ................. 500,000 506,085 Wyoming City School District GO, School Improvement, Refunding, FSA Insured, 5.00%, 12/01/22 .................................................................................. 1,980,000 2,081,732 Zanesville City School District GO, School Improvement, MBIA Insured, 4.75%, 12/01/22 ........................................................................ 5,500,000 5,653,945 4.75%, 12/01/26 ........................................................................ 3,250,000 3,319,160 5.05%, 12/01/29 ........................................................................ 3,500,000 3,646,370 -------------- 1,043,946,167 -------------- U.S. TERRITORIES 2.7% Puerto Rico Commonwealth GO, Public Improvement, Series A, FGIC Insured, Pre-Refunded, 5.00%, 7/01/32 ............................................................................ 10,000,000 10,824,800 Puerto Rico Port Authority Revenue, Series D, FGIC Insured, 6.00%, 7/01/21 ................... 11,000,000 11,026,070 University of Puerto Rico Revenues, Series M, MBIA Insured, 5.25%, 6/01/25 ................... 6,000,000 6,119,340 -------------- 27,970,210 -------------- TOTAL BONDS (COST $1,024,659,039) ............................................................ 1,071,916,377 --------------
150 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 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% Canal Winchester Local School District GO, Capital Appreciation, MBIA Insured, 12/01/32 ............................................................................... $ 1,455,000 $ 370,807 12/01/33 ............................................................................... 2,000,000 481,900 Hilliard School District GO, Capital Appreciation, School Construction, Refunding, MBIA Insured, 12/01/19 ............................................................................... 2,190,000 1,141,866 12/01/20 ............................................................................... 4,525,000 2,238,879 Lebanon City School District GO, Capital Appreciation, School Construction, Refunding, FSA Insured, 12/01/13 ............................................................................... 1,000,000 714,640 12/01/14 ............................................................................... 1,365,000 923,859 12/01/15 ............................................................................... 1,115,000 717,659 Marysville Exempted Village School District GO, Capital Appreciation, Refunding, MBIA Insured, 12/01/20 ............................................................................... 1,000,000 502,080 12/01/21 ............................................................................... 1,000,000 476,530 -------------- TOTAL ZERO COUPON BONDS (COST $7,634,284) .................................................... 7,568,220 -------------- TOTAL LONG TERM INVESTMENTS (COST $1,032,293,323) ............................................ 1,079,484,597 -------------- SHORT TERM INVESTMENTS 0.5% BONDS 0.5% OHIO 0.5% (b)Cuyahoga County Hospital Revenue, University Hospitals of Cleveland, Daily VRDN and Put, 2.90%, 1/01/16 ............................................................................ 3,600,000 3,600,000 (b)Ohio State Air Quality Development Authority Revenue, Pollution Control, Ohio Edison Co., Series C, Daily VRDN and Put, 3.01%, 6/01/23 .............................................. 1,700,000 1,700,000 -------------- TOTAL SHORT TERM INVESTMENTS (COST $5,300,000) ............................................... 5,300,000 -------------- TOTAL INVESTMENTS (COST $1,037,593,323) 102.6% ............................................... 1,084,784,597 OTHER ASSETS, LESS LIABILITIES (2.6)% ........................................................ (27,495,144) -------------- NET ASSETS 100.0% ............................................................................ $1,057,289,453 ==============
See Selected Portfolio Abbreviations on page 169. (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 | 151 See Notes to Statements of Investments. | FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN OREGON TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 96.9% BONDS 96.0% OREGON 79.8% Bend Sewer Revenue, AMBAC Insured, Pre-Refunded, 5.375%, 10/01/20 ............................ $ 1,550,000 $ 1,679,286 Benton and Linn County School District No. 509J GO, Corvallis, FSA Insured, 5.00%, 6/01/22 ................................................................................... 5,000,000 5,244,900 Benton County Hospital Facilities Authority Revenue, Samaritan Health Services Project, Refunding, 5.20%, 10/01/17 ........................................................................ 4,000,000 4,131,040 5.125%, 10/01/28 ....................................................................... 4,500,000 4,575,555 Clackamas County Hospital Facility Authority Revenue, Gross Willamette Falls Project, Refunding, 5.375%, 4/01/22 ............................. 2,125,000 2,166,183 Gross Willamette Falls Project, Refunding, 5.125%, 4/01/26 ............................. 1,000,000 977,090 Kaiser Permanente, Series A, ETM, 5.375%, 4/01/14 ...................................... 2,500,000 2,679,350 Willamette Falls Hospital Project, 6.00%, 4/01/19 ...................................... 1,000,000 1,039,910 Willamette View Inc. Project, Refunding, 6.10%, 11/01/12 ............................... 500,000 508,280 Willamette View Inc. Project, Refunding, 6.30%, 11/01/21 ............................... 1,500,000 1,514,325 Clackamas County School District No. 007J Lake Oswego GO, MBIA Insured, Pre-Refunded, 5.00%, 6/01/26 ............................................. 5,000,000 5,358,650 Refunding, FSA Insured, 5.25%, 6/01/25 ................................................. 3,075,000 3,444,830 Clackamas County School District No. 62C Oregon City GO, Refunding, FSA Insured, 5.00%, 6/15/20 ................................................................................... 2,560,000 2,701,747 Clackamas County School District No. 86 GO, Canby, 5.25%, 6/15/20 .................................................................. 3,000,000 3,214,140 Canby, FSA Insured, 5.00%, 6/15/24 ..................................................... 1,000,000 1,050,250 Refunding, FGIC Insured, 5.00%, 6/15/20 ................................................ 2,000,000 2,109,260 Clackamas County School District No. 108 GO, FSA Insured, Pre-Refunded, 5.00%, 6/15/25 ................................................................................... 5,000,000 5,360,950 Coos County School District No. 13 GO, FSA Insured, 5.00%, 6/15/22 ......................................................................... 55,000 58,067 Pre-Refunded, 5.00%, 6/15/22 ........................................................... 2,465,000 2,659,686 Curry County School District No. 17-C Brookings Harbor GO, Pre-Refunded, 5.375%, 12/15/20 .................................................................................. 2,750,000 2,984,493 Deschutes and Jefferson Counties School District No. 02J Redmond GO, Series A, FGIC Insured, 5.00%, 6/15/21 .............................................................. 1,000,000 1,055,370 Deschutes County Administrative School District No. 1 GO, Series A, FSA Insured, Pre-Refunded, 5.125%, 6/15/21 ............................................................. 3,500,000 3,774,435 Emerald Peoples Utility District Revenue, Refunding, Series A, FSA Insured, 5.25%, 11/01/21 .................................................................................. 1,000,000 1,075,550 Eugene Public Safety Facilities GO, FGIC Insured, 5.70%, 6/01/16 ............................. 500,000 505,840 Gresham Stormwater Revenue, FGIC Insured, 5.30%, 5/01/21 ..................................... 1,190,000 1,266,267 High Desert Education Service District GO, AMBAC Insured, 4.50%, 6/01/30 ..................... 1,010,000 995,244 Hillsboro GO, AMBAC Insured, 5.00%, 6/01/29 .................................................. 5,360,000 5,574,186 Hillsboro Hospital Facility Authority Revenue, Hospital Tuality Healthcare Project, Radian Insured, 5.375%, 10/01/26 ............................................................................... 2,000,000 2,101,160 10/01/31 ............................................................................... 2,000,000 2,096,980 Jackson County School District No. 004 GO, FSA Insured, 5.00%, 6/15/20 ......................................................................... 1,450,000 1,526,401 Pre-Refunded, 5.00%, 6/15/20 ........................................................... 550,000 589,705
152 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 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 $ 2,231,373 Jackson County School District No. 9 Eagle Point GO, Pre-Refunded, 5.00%, 6/15/20 ................................................................................ 1,680,000 1,801,279 6/15/21 ................................................................................ 1,500,000 1,608,285 Josephine County Unit School District Three Rivers GO, Refunding, FGIC Insured, 5.00%, 12/15/20 .................................................................................. 1,500,000 1,607,520 Klamath Falls Inter Community Hospital Authority Revenue, Merle West Medical Center Project, Refunding, 6.25%, 9/01/31 ................................................................. 5,250,000 5,572,980 Lane and Douglas Counties School District No. 045J3 GO, South Lane District, Refunding, FSA Insured, 4.75%, 6/15/25 ............................................................... 3,510,000 3,583,008 Lane County School District No. 052 Bethel GO, Refunding, FSA Insured, 5.00%, 6/15/20 ........ 5,700,000 5,981,124 Lane County School District No. 4J Eugene GO, FSA Insured, 4.75%, 7/01/22 .................... 5,150,000 5,275,351 Linn County Community School District No. 9 GO, Lebanon, FGIC Insured, Pre-Refunded, 5.55%, 6/15/21 .................................... 1,155,000 1,289,442 Lebanon, FGIC Insured, Pre-Refunded, 5.60%, 6/15/30 .................................... 9,495,000 10,631,077 MBIA Insured, Pre-Refunded, 5.375%, 6/15/30 ............................................ 5,000,000 5,393,700 Linn County School District No. 55 GO, Sweet Home, FSA Insured, 5.00%, 6/15/29 ............... 1,000,000 1,031,120 Marion County Housing Authority Revenue, Elliott Residence Project, GNMA Secured, 7.50%, 10/20/25 .................................................................................. 1,125,000 1,195,594 Medford Hospital Facilities Authority Revenue, Asante Health System, Series A, MBIA Insured, 5.00%, 8/15/18 ................................................................................ 8,000,000 8,296,800 8/15/24 ................................................................................ 5,300,000 5,437,906 Multnomah County Educational Facilities Revenue, University of Portland Project, 6.00%, 4/01/25 ................................................................................... 2,000,000 2,131,040 Multnomah County GO, Refunding, AMBAC Insured, 4.50%, 8/01/19 ................................ 1,500,000 1,529,025 Multnomah County School District No. 007 Reynolds GO, Refunding, MBIA Insured, 5.00%, 6/15/20 ................................................ 2,000,000 2,154,560 Series 2005, MBIA Insured, 5.00%, 6/01/35 .............................................. 3,220,000 3,283,466 Multnomah County School District No. 40 GO, FSA Insured, Pre-Refunded, 5.00%, 12/01/20 .................................................................................. 3,490,000 3,727,146 Multnomah-Clackamas Counties Centennial School District No. 28-302 GO, FGIC Insured, Pre-Refunded, 5.00%, 6/15/21 .............................................................. 5,000,000 5,360,950 Northern Wasco County Peoples Utilities District Hydroelectric Revenue, McNary Dam Fishway Project, 5.20%, 12/01/24 .................................................................. 5,000,000 5,005,850 Oak Lodge Water District GO, AMBAC Insured, 7.40%, 12/01/08 ........................................................................ 215,000 219,429 7.50%, 12/01/09 ........................................................................ 215,000 219,532 Oregon Coast Community College District GO, MBIA Insured, 5.00%, 6/15/23 ..................... 3,745,000 3,941,388 Oregon Health Sciences University Revenue, Series A, MBIA Insured, 5.00%, 7/01/32 ............ 23,750,000 24,534,462 Oregon State Department of Administrative Services COP, FSA Insured, 4.625%, 5/01/30 ........................................................... 7,795,000 7,766,392 Refunding, Series A, AMBAC Insured, 5.00%, 5/01/24 ..................................... 10,000,000 10,294,000 Refunding, Series B, AMBAC Insured, 5.00%, 5/01/26 ..................................... 7,500,000 7,790,925 Refunding, Series B, FSA Insured, 5.00%, 5/01/21 ....................................... 1,930,000 2,021,617 Series A, AMBAC Insured, Pre-Refunded, 6.00%, 5/01/26 .................................. 2,000,000 2,224,780
Quarterly Statements of Investments | 153 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 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.) Series A, FSA Insured, 5.00%, 5/01/23 .................................................. $ 2,695,000 $ 2,824,683 Series B, FGIC Insured, 5.00%, 11/01/30 ................................................ 11,100,000 11,512,254 Oregon State Department of Transportation Highway User Tax Revenue, Refunding, Series A, 5.00%, 11/15/22 ................................................... 1,200,000 1,266,360 Refunding, Series A, 5.00%, 11/15/23 ................................................... 1,260,000 1,324,890 Refunding, Series A, 5.00%, 11/15/25 ................................................... 1,295,000 1,359,724 Refunding, Series A, 5.00%, 11/15/29 ................................................... 3,330,000 3,463,833 Series A, 5.125%, 11/15/23 ............................................................. 5,000,000 5,291,400 Series A, 5.125%, 11/15/26 ............................................................. 14,200,000 14,966,232 Series A, 5.00%, 11/15/28 .............................................................. 5,000,000 5,212,200 (a)Oregon State EDR, Georgia Pacific Corp. Project, Series CLVII, 6.35%, 8/01/25 ................ 7,910,000 7,915,379 Oregon State Facilities Authority Revenue, Senior College in Student Housing Project, Series A, XLCA Insured, 5.00%, 7/01/35 ...... 3,660,000 3,769,361 Willamette University Projects, Refunding, Series A, FGIC Insured, 5.00%, 10/01/35 ..... 2,710,000 2,812,086 Oregon State GO, Board of Higher Education, Baccalaureate, Series A, 5.00%, 8/01/27 ..................... 6,000,000 6,162,180 Board of Higher Education, Series A, Pre-Refunded, 5.65%, 8/01/27 ...................... 4,440,000 4,654,496 Board of Higher Education, Series C, Pre-Refunded, 5.65%, 8/01/27 ...................... 1,460,000 1,530,533 Elderly and Disabled Housing Authority, Series A, 6.00%, 8/01/15 ....................... 910,000 921,293 Elderly and Disabled Housing Authority, Series A, 6.00%, 8/01/21 ....................... 455,000 464,428 Elderly and Disabled Housing Authority, Series A, 5.375%, 8/01/28 ...................... 1,435,000 1,453,009 Elderly and Disabled Housing Authority, Series B, 6.10%, 8/01/17 ....................... 1,410,000 1,424,692 Elderly and Disabled Housing Authority, Series B, 6.25%, 8/01/23 ....................... 2,015,000 2,035,311 Elderly and Disabled Housing Authority, Series C, 6.50%, 8/01/22 ....................... 335,000 336,879 State Board of Higher Education, Refunding, Series A, 5.00%, 8/01/31 ................... 2,000,000 2,058,380 State Board of Higher Education, Refunding, Series E, 5.00%, 8/01/29 ................... 7,745,000 8,070,367 State Board of Higher Education, Series A, 5.00%, 8/01/35 .............................. 6,000,000 6,218,220 State Board of Higher Education, Series A, Pre-Refunded, 5.60%, 8/01/25 ................ 8,000,000 8,676,320 State Board of Higher Education, Series A, Pre-Refunded, 5.50%, 8/01/29 ................ 2,000,000 2,162,260 Veteran's Welfare, Series 75, 5.85%, 10/01/15 .......................................... 265,000 271,288 Veteran's Welfare, Series 75, 5.875%, 10/01/18 ......................................... 135,000 138,036 Veteran's Welfare, Series 75, 6.00%, 4/01/27 ........................................... 380,000 388,835 Veteran's Welfare, Series 76-A, 6.05%, 10/01/28 ........................................ 825,000 837,144 Veteran's Welfare, Series 77, 5.30%, 10/01/29 .......................................... 2,175,000 2,223,742 Veteran's Welfare, Series A, 5.70%, 10/01/32 ........................................... 2,810,000 2,874,040 Oregon State Health Housing Educational and Cultural Facilities Authority Revenue, Peacehealth, AMBAC Insured, 5.00%, 11/15/26 ............................................ 5,500,000 5,695,470 Reed College Project, Series A, 5.75%, 7/01/32 ......................................... 10,735,000 11,541,521 Oregon State Housing and Community Services Department MFHR, Series A, 6.15%, 7/01/21 ............................................................... 910,000 934,943 Series B, 6.00%, 7/01/31 ............................................................... 5,000,000 5,168,100 Oregon State Housing and Community Services Department Mortgage Revenue, SFM Program, Series A, 6.35%, 7/01/14 ............................................................... 675,000 681,696 Series A, 6.40%, 7/01/18 ............................................................... 335,000 338,323 Series A, 6.45%, 7/01/26 ............................................................... 805,000 817,775
154 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 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 C, 6.20%, 7/01/15 ............................................................... $ 660,000 $ 668,936 Series C, 6.40%, 7/01/26 ............................................................... 375,000 380,081 Series D, 6.80%, 7/01/27 ............................................................... 640,000 655,686 Series H, FHA Insured, 5.75%, 7/01/30 .................................................. 2,215,000 2,261,537 Polk Marion and Benton Counties School District No. 13J GO, FSA Insured, Pre-Refunded, 5.80%, 6/15/20 ............................................................................ 1,985,000 2,176,354 Port Astoria PCR, James River Project, Refunding, 6.55%, 2/01/15 ............................. 945,000 946,276 Port of Portland International Airport Revenue, Portland International Airport, Refunding, Series D, FGIC Insured, 5.00%, 7/01/23 ...................................... 3,000,000 3,069,000 Series 7B, MBIA Insured, Pre-Refunded, 7.10%, 7/01/21 .................................. 2,800,000 3,288,460 Series 12C, FGIC Insured, 5.00%, 7/01/18 ............................................... 1,500,000 1,566,390 Series A, AMBAC Insured, 5.50%, 7/01/24 ................................................ 22,000,000 23,574,760 Port St. Helens PCR, Boise Cascade Corp. Project, Refunding, 5.65%, 12/01/27 ................................ 4,750,000 4,773,987 Portland General Electric Co. Project, Series A, 5.25%, 8/01/14 ........................ 3,600,000 3,584,664 Portland Community College District GO, Series B, Pre-Refunded, 5.00%, 6/01/20 ................................................................................ 7,185,000 7,681,915 6/01/21 ................................................................................ 6,290,000 6,725,016 Portland GO, Central City Streetcar Project, Series A, 4.75%, 4/01/21 ............................... 3,600,000 3,653,892 Ltd. Tax, Series A, 5.00%, 4/01/18 ..................................................... 1,000,000 1,030,200 Ltd. Tax, Series A, 5.00%, 6/01/24 ..................................................... 10,000,000 10,427,200 Ltd. Tax, Series A, MBIA Insured, 5.125%, 6/01/30 ...................................... 6,315,000 6,592,734 Portland Housing Authority MFR, Berry Ridge Project, 6.30%, 5/01/29 .................................................... 1,500,000 1,541,865 Housing-Lovejoy Station Apartments Project, MBIA Insured, 6.00%, 7/01/33 ............... 2,000,000 2,086,900 Portland Hydroelectric Power Revenue, Bull Run Project, Series C, 7.00%, 10/01/16 ............ 585,000 591,499 Portland MFR, Civic Stadium Housing Project, Series A, 6.00%, 3/01/17 ................................ 1,000,000 1,018,230 Housing Garden Park Estates Project, Series A, GNMA Secured, 5.875%, 3/20/37 ........... 3,175,000 3,268,726 Portland River District Urban Renewal and Redevelopment Revenue, Series A, AMBAC Insured, 5.00%, 6/15/21 ............................................................................ 3,000,000 3,149,550 Portland Sewer System Revenue, first lien, Series A, FSA Insured, 5.00%, 10/01/24 ..................................... 6,235,000 6,552,237 Refunding, Series A, FSA Insured, 5.00%, 6/01/23 ....................................... 2,500,000 2,617,550 Portland Urban Renewal and Redevelopment Revenue, Interstate Corridor, Refunding, Series A, FGIC Insured, 5.00%, 6/15/23 ...................................... 2,030,000 2,138,483 Series A, FGIC Insured, 5.00%, 6/15/24 ................................................. 1,295,000 1,360,074 Series A, FGIC Insured, 5.00%, 6/15/25 ................................................. 2,385,000 2,499,146 Portland Urban Renewal and Redevelopment Tax Allocation, Convention Center, Series A, AMBAC Insured, 5.50%, 6/15/20 ............................................................. 3,000,000 3,226,500 Redmond GO, Series C, MBIA Insured, 5.00%, 6/01/33 ........................................... 1,260,000 1,301,290 Salem-Keizer School District No. 24J GO, Pre-Refunded, 5.00%, 6/01/19 ........................ 9,500,000 9,996,090 Southwestern Community College District GO, MBIA Insured, 5.00%, 6/01/28 ..................... 1,100,000 1,141,591 Sunrise Water Authority Water Revenue, sub. lien, Series B, XLCA Insured, 5.00%, 9/01/25 ................................................. 1,160,000 1,207,108 XLCA Insured, 5.00%, 3/01/25 ........................................................... 1,660,000 1,718,249
Quarterly Statements of Investments | 155 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN OREGON TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) OREGON (CONT.) Tillamook and Yamhill Counties School District No. 101, Nestucca Valley, FSA Insured, 5.00%, 6/15/25 ................................................................................... $ 1,765,000 $ 1,849,473 Tri-County Metropolitan Transportation District Revenue, Ltd. Obligation, Airport Light Rail, Series 1, 5.65%, 6/01/29 .................................................................. 14,080,000 14,736,410 Washington and Clackamas Counties School District No. 23 J Tigard GO, MBIA Insured, Pre-Refunded, 5.00%, 6/15/22 .............................................................. 7,000,000 7,552,860 Washington and Clackamas Counties School District No. 23 J Tigard GO, Refunding, MBIA Insured, 5.00%, 6/15/19 ................................................................................ 6,000,000 6,472,140 6/15/20 ................................................................................ 6,260,000 6,743,773 6/15/22 ................................................................................ 6,905,000 7,455,536 Washington County Clean Water Services Sewer Revenue, senior lien, FGIC Insured, 5.00%, 10/01/19 .................................................................................. 3,905,000 4,089,277 Washington County GO, 5.00%, 6/01/26 ......................................................... 10,000,000 10,319,200 Washington County School District No. 48J Beaverton GO, Pre-Refunded, 5.00%, 6/01/22 ......... 4,155,000 4,481,458 Washington County Unified Sewer Agency Revenue, senior lien, Refunding, Series A, 6.20%, 10/01/10 .................................................................................. 470,000 471,443 Washington Multnomah and Yamhill Counties School District No. 1J Hillsboro GO, FSA Insured, 5.60%, 4/01/20 ............................................................................ 1,000,000 1,070,240 -------------- 550,671,920 -------------- U.S. TERRITORIES 16.2% Children's Trust Fund Puerto Rico Tobacco Settlement Revenue, Asset-Backed Bonds, Refunding, 5.625%, 5/15/43 ................................................................ 10,000,000 10,164,200 Puerto Rico Commonwealth GO, Public Improvement, Series A, 5.00%, 7/01/29 ......................................................................... 10,000,000 10,027,300 5.125%, 7/01/31 ........................................................................ 9,885,000 10,015,976 Pre-Refunded, 5.00%, 7/01/27 ........................................................... 10,000,000 10,824,800 Pre-Refunded, 5.125%, 7/01/31 .......................................................... 5,115,000 5,532,333 Puerto Rico Commonwealth Highway and Transportation Authority Highway Revenue, Series Y, 5.50%, 7/01/36 ......................................................................... 13,000,000 13,902,980 Pre-Refunded, 5.50%, 7/01/26 ........................................................... 4,275,000 4,391,921 Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Series D, Pre-Refunded, 5.375%, 7/01/36 ................................................... 10,000,000 10,950,700 Puerto Rico Electric Power Authority Power Revenue, Series II, 5.25%, 7/01/31 ......................................................................... 12,000,000 12,423,720 FSA Insured, 5.125%, 7/01/26 ........................................................... 9,150,000 9,663,498 Puerto Rico HFC Revenue, Sixth Portfolio, Section 8, FHA Insured, Pre-Refunded, 7.75%, 12/01/26 .................................................................................. 395,000 403,899 Puerto Rico Public Finance Corp. Revenue, Commonwealth Appropriation, Series E, 5.50%, 8/01/29 ......................................................................... 1,285,000 1,336,529 Pre-Refunded, 5.50%, 8/01/29 ........................................................... 3,715,000 4,079,924 Virgin Islands PFAR, senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/15 ............................................................................... 1,635,000 1,707,676 10/01/18 ............................................................................... 2,400,000 2,497,560
156 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN OREGON TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) U.S. TERRITORIES (CONT.) Virgin Islands Water and Power Authority Electric System Revenue, Refunding, 5.30%, 7/01/18 ................................................................................ $ 2,500,000 $ 2,488,550 7/01/21 ................................................................................ 1,400,000 1,392,608 -------------- 111,804,174 -------------- TOTAL BONDS (COST $631,047,467) 662,476,094 -------------- 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 5,577,329 Portland GO, Ltd. Tax, Series B, 6/01/21 ..................................................... 1,000,000 489,930 -------------- TOTAL ZERO COUPON BONDS (COST $5,326,056) .................................................... 6,067,259 -------------- TOTAL LONG TERM INVESTMENTS (COST $636,373,523) .............................................. 668,543,353 -------------- SHORT TERM INVESTMENTS 2.0% BONDS 2.0% OREGON 0.4% (b)Oregon Health Sciences University Revenue, Special Oshu Medical Group Project, Series A, Weekly VRDN and Put, 2.99%, 7/01/33 ....................................................... 1,900,000 1,900,000 (b)Oregon State Health Housing Educational and Cultural Facilities Authority Revenue, Guide Dogs for the Blind, Series A, Weekly VRDN and Put, 3.03%, 7/01/25 ......................... 900,000 900,000 -------------- 2,800,000 -------------- U.S. TERRITORIES 1.6% (b)Puerto Rico Commonwealth Government Development Bank Revenue, Refunding, MBIA Insured, Weekly VRDN and Put, 2.85%, 12/01/15 ........................................ 5,759,000 5,759,000 (b)Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Series A, AMBAC Insured, Weekly VRDN and Put, 2.93%, 7/01/28 .............................. 5,360,000 5,360,000 -------------- 11,119,000 -------------- TOTAL SHORT TERM INVESTMENTS (COST $13,919,000) .............................................. 13,919,000 -------------- TOTAL INVESTMENTS (COST $650,292,523) 98.9% .................................................. 682,462,353 OTHER ASSETS, LESS LIABILITIES 1.1% .......................................................... 7,643,292 -------------- NET ASSETS 100.0% ............................................................................ $ 690,105,645 ==============
See Selected Portfolio Abbreviations on page 169. (a) Upon review by the Internal Revenue Service (IRS), income generated by the bond has been deemed to be taxable. Georgia Pacific Corp. (GP) is contesting the IRS determination and is currently negotiating with the Fund on this matter. In various SEC filings, GP has stated that it will take steps to ensure that bondholders will be made whole with respect to any tax liability caused by the IRS determination. (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 | 157 See Notes to Statements of Investments. | FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN PENNSYLVANIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 100.9% BONDS 100.2% PENNSYLVANIA 94.0% Abington School District GO, Series A, FSA Insured, 5.00%, 4/01/32 ........................... $ 5,280,000 $ 5,483,122 Allegheny County Airport Authority Airport Revenue, Pittsburgh International Airport, Refunding, FGIC Insured, 5.75%, 1/01/18 ................................................... 1,000,000 1,055,490 Allegheny County Airport Revenue, Pittsburgh International Airport, Refunding, Series B, MBIA Insured, 5.00%, 1/01/19 .............................................................. 6,000,000 6,117,720 Allegheny County COP, AMBAC Insured, 5.00%, 12/01/28 ......................................... 4,000,000 4,144,640 Allegheny County GO, MBIA Insured, Pre-Refunded, 5.00%, 11/01/27 ............................. 1,000,000 1,082,980 Allegheny County Higher Education Building Authority University Revenue, (a)Duquesne University, Series A, XLCA Insured, 5.00%, 3/01/29 ............................ 5,000,000 5,194,650 (a)Duquesne University, Series A, XLCA Insured, 5.00%, 3/01/33 ............................ 6,630,000 6,860,591 Duquesne University Project, AMBAC Insured, Pre-Refunded, 5.00%, 3/01/21 ............... 1,000,000 1,024,390 Allegheny County Hospital Development Authority Revenue, Allegheny General Hospital Project, Series A, MBIA Insured, Pre-Refunded, 6.25%, 9/01/20 ............................................................................. 10,000,000 10,507,800 Allegheny Hospital, South Hills Health System, Refunding, Series A, MBIA Insured, 5.875%, 5/01/26 ..................................................................... 1,700,000 1,749,674 Health Center, Canterbury Place, Refunding, MBIA Insured, 5.375%, 12/01/21 ............. 4,500,000 4,705,560 Health System, Series A, MBIA Insured, 6.50%, 11/15/30 ................................. 10,000,000 11,391,900 University of Pittsburgh Health Center, Refunding, Series A, MBIA Insured, 5.625%, 4/01/27 ............................................................................. 10,450,000 10,918,264 Allegheny County IDAR, Environmental Improvement, USX Corp., Refunding, 6.10%, 1/15/18 ........................ 2,000,000 2,097,280 Environmental Improvement, USX Corp., Refunding, 5.50%, 12/01/29 ....................... 10,000,000 10,389,800 Environmental Improvement, USX Corp., Refunding, 5.60%, 9/01/30 ........................ 7,530,000 7,798,821 Series A, MBIA Insured, 5.00%, 11/01/29 ................................................ 5,000,000 5,149,750 Series B, MBIA Insured, 5.00%, 11/01/29 ................................................ 9,000,000 9,307,350 Allegheny County Port Authority Special Revenue, Transportation, FGIC Insured, 5.00%, 3/01/25 ........................................................... 13,250,000 13,693,345 FGIC Insured, 5.00%, 3/01/29 ........................................................... 16,500,000 16,952,265 MBIA Insured, Pre-Refunded, 6.125%, 3/01/29 ............................................ 15,000,000 16,401,300 Allegheny County Residential Finance Authority Mortgage Revenue, Ladies Grand Army Republic Health Facilities Project, Series G, FHA Insured, 6.35%, 10/01/36 ............................................................................ 1,760,000 1,776,966 SFM, Series DD-1, GNMA Secured, 5.35%, 11/01/19 ........................................ 290,000 295,110 SFM, Series DD-2, GNMA Secured, 5.40%, 11/01/29 ........................................ 1,425,000 1,443,896 SFM, Series FF-2, GNMA Secured, 6.00%, 11/01/31 ........................................ 2,935,000 3,017,473 SFM, Series II-2, GNMA Secured, 5.90%, 11/01/32 ........................................ 1,045,000 1,087,720 SFM, Series T, GNMA Secured, 6.95%, 5/01/17 ............................................ 510,000 511,132 Allegheny Valley School District GO, MBIA Insured, 5.00%, 11/01/28 ........................... 1,550,000 1,609,737 (a)Allentown Parking Authority Parking Revenue, FSA Insured, 5.00%, 11/15/35 .................... 4,430,000 4,598,694 Armstrong County GO, MBIA Insured, 5.40%, 6/01/31 ............................................ 2,500,000 2,629,425 Beary Valley Joint Authority Water Revenue, FSA Insured, 5.00%, 5/01/29 ...................... 1,000,000 1,033,060 Bedford County GO, AMBAC Insured, 5.00%, 9/01/35 ............................................. 6,590,000 6,836,532 Bensalem Township GO, Refunding, FGIC Insured, 5.75%, 12/01/16 ............................... 3,000,000 3,024,570 Berwick Area School District GO, Series A, FGIC Insured, 5.00%, 10/01/25 ..................... 1,000,000 1,075,620 Bucks County IDAR, AMBAC Insured, 5.125%, 9/15/31 ............................................ 3,675,000 3,796,128 Butler Area School District GO, FSA Insured, Pre-Refunded, 5.00%, 4/01/31 .................... 4,000,000 4,333,560
158 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN PENNSYLVANIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) PENNSYLVANIA (CONT.) Cambria County IDA, PCR, Pennsylvania Electric Co. Project, Refunding, Series A, MBIA Insured, 5.80%, 11/01/20 ............................................................. $ 5,000,000 $ 5,114,800 Carbon County IDAR, Panther Creek Partner Project, Refunding, 6.65%, 5/01/10 ................. 3,400,000 3,599,614 Chartiers Valley Industrial and Commercial Development Authority First Mortgage Revenue, Asbury Place Project, Pre-Refunded, 6.50%, 2/01/36 ........................................ 4,025,000 4,120,714 Chester County School Authority School Revenue, AMBAC Insured, 5.00%, 4/01/22 ................ 2,545,000 2,663,495 Chichester School District GO, FSA Insured, 5.00%, 3/15/26 ................................... 1,830,000 1,890,244 Clarion County Hospital Authority Revenue, Clarion Hospital Project, Refunding, 5.40%, 7/01/07 ......................................................................... 1,000,000 1,002,790 5.55%, 7/01/09 ......................................................................... 2,365,000 2,379,332 5.60%, 7/01/10 ......................................................................... 600,000 600,354 5.75%, 7/01/12 ......................................................................... 1,795,000 1,798,913 5.75%, 7/01/17 ......................................................................... 700,000 683,802 5.625%, 7/01/21 ........................................................................ 1,500,000 1,411,710 Council Rock School District GO, Series A, MBIA Insured, 5.00%, 11/15/22 ..................... 5,180,000 5,362,802 Cumberland County Municipal Authority College Revenue, Dickinson College, Series A, AMBAC Insured, 5.50%, 11/01/30 ............................................................ 1,200,000 1,277,760 Dauphin County General Authority Health System Revenue, Pinnacle Health, MBIA Insured, 5.50%, 5/15/17 ......................................................................... 1,015,000 1,051,966 Pre-Refunded, 5.50%, 5/15/17 ........................................................... 985,000 1,026,124 Dauphin County General Authority Hospital Revenue, Hapsco-Western Hospital Project, Refunding, Series A, MBIA Insured, 6.50%, 7/01/12 ...................................... 4,500,000 4,512,240 Series B, MBIA Insured, ETM, 6.25%, 7/01/16 ............................................ 5,000,000 5,720,150 Dauphin County General Authority Revenue, Mandatory Put 12/01/05, Sub Series 3, AMBAC Insured, 4.75%, 6/01/26 ............................................................. 1,000,000 1,000,000 Deer Lakes School District GO, Series A, FSA Insured, Pre-Refunded, 5.00%, 1/15/23 ........... 1,000,000 1,035,190 Delaware County Authority College Revenue, Cabrini College, Radian Insured, 5.875%, 7/01/29 ....................................... 6,385,000 6,786,170 Eastern College, Series C, 5.625%, 10/01/28 ............................................ 2,210,000 2,238,951 Haverford College, 5.75%, 11/15/29 ..................................................... 3,500,000 3,802,645 Haverford College, 6.00%, 11/15/30 ..................................................... 1,750,000 1,934,048 Delaware County Authority Revenue, Dunwoody Village Project, 6.25%, 4/01/30 ............................................... 1,800,000 1,882,062 Health Facilities, Mercy Health Corp. Project, ETM, 6.00%, 12/15/26 .................... 10,800,000 11,243,772 Delaware County IDAR, Philadelphia Suburban Water Co. Project, FGIC Insured, 6.00%, 6/01/29 ................................................................................... 2,000,000 2,160,720 Delaware County University Authority Revenue, Villanova University, Series A, MBIA Insured, 5.00%, 12/01/28 ........................................................................... 3,000,000 3,099,930 Delaware Valley Regional Finance Authority Local Government Revenue, Series B, AMBAC Insured, 5.60%, 7/01/17 ............................................................. 5,000,000 5,568,200 Erie County IDA Environmental Improvement Revenue, International Paper Co. Project, Refunding, Series B, 6.00%, 9/01/16 ....................................................... 600,000 638,610 Erie GO, Series E, FGIC Insured, 5.25%, 11/15/25 ............................................. 5,000,000 5,252,050 Erie School District GO, AMBAC Insured, Pre-Refunded, 5.80%, 9/01/29 ......................... 3,000,000 3,301,470 Greater Johnstown School District GO, Series C, MBIA Insured, 5.125%, 8/01/25 ................ 3,620,000 3,775,841 Hazleton Area School District GO, Series B, FGIC Insured, 5.00%, 3/01/23 ..................... 4,455,000 4,529,176 Hazleton Health Services Authority Hospital Revenue, Hazleton General Hospital, 5.50%, 7/01/27 ................................................................................... 1,500,000 1,385,985
Quarterly Statements of Investments | 159 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN PENNSYLVANIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) PENNSYLVANIA (CONT.) Indiana County IDAR, Indiana University of Pennsylvania, Refunding, AMBAC Insured, 5.00%, 11/01/29 .................................................................................. $ 1,250,000 $ 1,298,175 Johnstown RDA Sewer Revenue, Series A, FSA Insured, 5.00%, 8/15/34 ........................... 1,825,000 1,887,287 Lancaster County Hospital Authority Revenue, Health Center, Willow Valley Retirement Project, 5.875%, 6/01/21 ........................................................................... 1,000,000 1,049,540 Latrobe IDAR, Saint Vincent College Project, 5.70%, 5/01/31 .................................. 1,500,000 1,577,340 Lehigh County General Purpose Authority Revenues, Good Shepherd Rehabilitation Hospital, Refunding, AMBAC Insured, 5.25%, 11/15/27 ....... 5,000,000 5,124,950 Lehigh Valley Hospital, Health Network, Series A, MBIA Insured, 5.00%, 7/01/28 ......... 4,000,000 4,055,280 Lehigh Valley Hospital, Health Network, Series B, FSA Insured, 5.25%, 7/01/19 .......... 2,750,000 2,930,785 Lower Merion Township School District GO, Refunding, 4.375%, 5/15/18 ......................... 1,000,000 1,009,880 Luzerne County GO, Series D, FGIC Insured, 5.00%, 11/15/26 ................................... 2,000,000 2,051,860 Lycoming County Authority College Revenue, Pennsylvania College of Technology, AMBAC Insured, 5.25%, 5/01/32 .......................................................... 5,030,000 5,234,872 Refunding, AMBAC Insured, 5.35%, 7/01/26 ............................................... 2,400,000 2,547,336 Mercer County GO, FGIC Insured, 5.00%, 10/01/31 .............................................. 2,000,000 2,048,540 Mercer County IDA Water Facilities Revenue, MBIA Insured, 6.00%, 7/01/30 ..................... 5,000,000 5,429,150 Montgomery County GO, 5.00%, 9/15/22 ......................................................... 3,335,000 3,486,075 Montgomery County Higher Education and Health Authority Revenue, Faulkeways at Gwynedd Project, 6.75%, 11/15/24 ............................................................................... 400,000 422,764 11/15/30 ............................................................................... 1,000,000 1,056,910 Montgomery County IDA Retirement Community Revenue, Adult Community Total Services, Refunding, Series A, 5.875%, 11/15/22 .................. 4,850,000 4,948,746 Adult Community Total Services, Series B, 5.75%, 11/15/17 .............................. 4,000,000 4,146,120 Adult Community Total Services Retirement-Life Communities Inc., 5.25%, 11/15/28 ....... 5,000,000 5,032,250 Mount Pleasant Business District Authority Hospital Revenue, Frick Hospital, Pre-Refunded, 5.70%, 12/01/13 ........................................................................ 1,205,000 1,281,843 5.75%, 12/01/17 ........................................................................ 500,000 532,360 5.75%, 12/01/27 ........................................................................ 1,600,000 1,703,552 Muhlenberg School District GO, Series AA, FGIC Insured, 5.00%, 9/01/22 ......................................................................... 1,390,000 1,444,669 Pre-Refunded, 6.00%, 9/01/23 ........................................................... 4,000,000 4,436,640 New Wilmington Municipal Authority College Revenue, Westminster College, 5.35%, 3/01/28 ................................................................................... 2,250,000 2,271,510 Norristown Area School District GO, FGIC Insured, 5.00%, 9/01/27 ............................. 5,000,000 5,171,400 Northampton Boro Municipal Authority Water Revenue, MBIA Insured, 5.00%, 5/15/34 ............. 2,400,000 2,476,656 Northampton County IDAR, Pollution Control, Metropolitan Edison Co., Refunding, Series A, MBIA Insured, 6.10%, 7/15/21 .............................................................. 6,100,000 6,244,509 Norwin School District GO, FGIC Insured, Pre-Refunded, 6.00%, 4/01/30 ............................................. 5,000,000 5,478,150 Series A, MBIA Insured, 5.00%, 4/01/30 ................................................. 1,000,000 1,023,370 Series B, MBIA Insured, 5.00%, 4/01/31 ................................................. 6,390,000 6,511,282 Pennsbury School District GO, FGIC Insured, 5.00%, 1/15/22 ................................... 2,835,000 2,944,714 Pennsylvania Convention Center Authority Revenue, Refunding, Series A, 6.60%, 9/01/09 ........ 4,165,000 4,206,650 Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue, MacMillan LP Project, Pre-Refunded, 7.60%, 12/01/20 ....................................... 3,000,000 3,060,000
160 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN PENNSYLVANIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) PENNSYLVANIA (CONT.) Pennsylvania Economic Development Financing Authority Revenue, Lincoln University, Series A, FGIC Insured, 5.00%, 6/01/33 .............................................................. $ 3,325,000 $ 3,431,732 Pennsylvania HFAR, SFM, Refunding, Series 72A, 5.25%, 4/01/21 ................................ 7,000,000 7,061,740 Pennsylvania State Higher Educational Facilities Authority College and University Revenues, Allegheny College, Series B, 6.125%, 11/01/13 .......................................... 90,000 90,360 Drexel University, MBIA Insured, 5.75%, 5/01/22 ........................................ 3,095,000 3,252,040 Drexel University, MBIA Insured, Pre-Refunded, 5.75%, 5/01/22 .......................... 905,000 953,752 Marywood University Project, MBIA Insured, Pre-Refunded, 5.65%, 6/01/25 ................ 2,500,000 2,723,650 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 17,700,570 University of Pennsylvania Health Services, Series A, Pre-Refunded, 5.75%, 1/01/22 ..... 10,000,000 10,118,300 Pennsylvania State Higher Educational Facilities Authority Revenue, Bryn Mawr College, AMBAC Insured, 5.125%, 12/01/29 ..................................... 1,500,000 1,566,810 Drexel University, Series A, 5.00%, 5/01/20 ............................................ 1,485,000 1,538,401 Drexel University, Series A, 5.20%, 5/01/29 ............................................ 750,000 784,455 Philadelphia College of Textiles and Science, 6.75%, 4/01/20 ........................... 3,040,000 3,065,232 State System of Higher Education, Series N, MBIA Insured, Pre-Refunded, 5.80%, 6/15/24 ............................................................................. 4,000,000 4,055,000 State System of Higher Education, Series R, FSA Insured, 5.00%, 6/15/24 ................ 3,140,000 3,265,380 Temple University, First Series, MBIA Insured, 5.00%, 7/15/31 .......................... 3,000,000 3,081,360 Trustees University of Pennsylvania, Refunding, Series C, 5.00%, 7/15/38 ............... 5,000,000 5,165,500 Trustees University of Pennsylvania, Series C, 5.00%, 7/15/26 .......................... 5,000,000 5,216,900 University Sciences Philadelphia, Series A, XLCA Insured, 5.00%, 11/01/36 .............. 8,315,000 8,585,487 Widener University, 5.00%, 7/15/31 ..................................................... 500,000 503,010 Pennsylvania State Public School Building Authority Revenue, Career Institute of Technology, FGIC Insured, 5.00%, 11/15/28 .......................... 1,000,000 1,036,540 Central Montgomery County Area, FGIC Insured, 5.00%, 5/15/24 ........................... 2,500,000 2,613,750 Lehigh Career and Technical Institution, MBIA Insured, 5.00%, 10/01/31 ................. 1,000,000 1,024,270 Pennsylvania State Turnpike Commission Oil Franchise Tax Revenue, Series B, MBIA Insured, 5.00%, 12/01/24 ............................................................................... 1,655,000 1,726,943 12/01/31 ............................................................................... 5,000,000 5,159,400 Pennsylvania State Turnpike Commission Revenue, AMBAC Insured, Pre-Refunded, 5.00%, 7/15/28 ................................................................................ 10,000,000 10,813,500 7/15/31 ................................................................................ 13,820,000 14,944,257 Pennsylvania State Turnpike Commission Turnpike Revenue, Series A, AMBAC Insured, 5.00%, 12/01/34 ............................................... 5,000,000 5,164,450 Series R, AMBAC Insured, 5.00%, 12/01/26 ............................................... 2,000,000 2,076,900 Series R, AMBAC Insured, 5.00%, 12/01/30 ............................................... 11,125,000 11,494,795 Pennsylvania State University Revenue, 5.00%, 9/01/35 ........................................ 1,000,000 1,033,430 Philadelphia Authority For IDR, Series B, AMBAC Insured, 5.25%, 7/01/31 ...................... 2,000,000 2,088,740 Philadelphia Gas Works Revenue, 12th Series B, MBIA Insured, ETM, 7.00%, 5/15/20 ............. 1,000,000 1,205,130 Philadelphia Hospitals and Higher Educational Facilities Authority Revenue, Temple University Hospital, 5.875%, 11/15/23 ................................................................ 5,000,000 5,021,850 Philadelphia Housing Authority Capital Fund Program Revenue, Series A, FSA Insured, 5.00%, 12/01/21 .................................................................................. 5,000,000 5,258,650 Philadelphia IDA Lease Revenue, Series B, FSA Insured, 5.125%, 10/01/26 ...................... 12,000,000 12,543,120
Quarterly Statements of Investments | 161 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN PENNSYLVANIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) PENNSYLVANIA (CONT.) Philadelphia Parking Authority Parking Revenue, Airport, FSA Insured, 5.25%, 9/01/22 ................................................................................ $ 3,250,000 $ 3,410,680 9/01/29 ................................................................................ 13,000,000 13,693,550 Philadelphia RDA Revenue, Neighborhood Transformation, Series C, FGIC Insured, 5.00%, 4/15/31 ................................................................................... 10,830,000 11,197,570 Philadelphia School District GO, Series B, AMBAC Insured, Pre-Refunded, 5.375%, 4/01/19 ................................. 1,000,000 1,027,890 Series C, MBIA Insured, Pre-Refunded, 5.75%, 3/01/29 ................................... 8,000,000 8,706,160 Series D, FGIC Insured, 5.125%, 6/01/34 ................................................ 5,000,000 5,229,200 Philadelphia Water and Wastewater Revenue, Series A, FGIC Insured, 5.00%, 11/01/31 .......................................................... 7,515,000 7,713,171 FSA Insured, 5.00%, 7/01/29 ............................................................ 11,645,000 12,075,050 FSA Insured, 5.00%, 7/01/35 ............................................................ 4,500,000 4,648,500 Pine-Richland School District GO, FSA Insured, 5.00%, 7/15/35 ................................ 11,485,000 11,928,551 Pittsburgh Public Parking Authority Parking Revenue, AMBAC Insured, Pre-Refunded, 6.00%, 12/01/24 .................................................................................. 2,000,000 2,207,780 Pittsburgh Urban RDA Mortgage Revenue, Series C, GNMA Secured, 5.70%, 4/01/30 ................................................. 1,310,000 1,330,633 Series D, 6.25%, 10/01/17 .............................................................. 1,695,000 1,734,833 Pittsburgh Urban RDA Tax Allocation, 6.10%, 5/01/19 .......................................... 1,000,000 1,079,410 Pittsburgh Water and Sewer Authority Revenue, Refunding, FGIC Insured, ETM, 7.25%, 9/01/14 ................................................................................... 1,150,000 1,325,559 Plum Boro School District GO, FGIC Insured, Pre-Refunded, 5.25%, 9/15/30 ..................... 8,870,000 9,650,915 (a)Reading School District GO, FSA Insured, 5.00%, 1/15/36 ...................................... 8,000,000 8,308,480 Sayre Health Care Facilities Authority Revenue, Guthrie Health, Series A, 5.875%, 12/01/31 ... 2,500,000 2,659,925 Seneca Valley School District GO, MBIA Insured, Pre-Refunded, 5.375%, 1/01/21 ................ 2,000,000 2,192,020 South Fork Municipal Authority Hospital Revenue, Conemaugh Valley Memorial Hospital Project, Series A, MBIA Insured, Pre-Refunded, 5.75%, 7/01/26 ...................................... 10,000,000 10,342,500 Southcentral General Authority Revenue, Wellspan Health Obligated, MBIA Insured, ETM, 5.25%, 5/15/31 .................................................................... 1,875,000 1,995,188 Pre-Refunded, 5.25%, 5/15/31 ........................................................... 8,125,000 8,878,675 Southeastern Pennsylvania Transportation Authority Special Revenue, FGIC Insured, 5.375%, 3/01/22 ................................................................................... 3,000,000 3,127,530 Southern Lehigh School District GO, Series A, FGIC Insured, 5.00%, 9/01/25 ................... 6,900,000 7,146,882 State Public School Building Authority College Revenue, Westmoreland County Community College, FGIC Insured, 5.25%, 10/15/22 .................................................... 2,170,000 2,303,151 State Public School Building Authority School Revenue, Daniel Boone School District Project, MBIA Insured, 5.00%, 4/01/28 ..................... 10,000,000 10,327,200 Northwestern School District Project, Series E, FGIC Insured, 5.75%, 1/15/19 ........... 3,000,000 3,189,030 Philadelphia School District Project, FSA Insured, 5.00%, 6/01/33 ...................... 37,170,000 38,244,956 Susquehanna Area Regional Airport Authority Revenue, Series A, AMBAC Insured, 5.00%, 1/01/28 ................................................................................... 2,000,000 2,030,860 Twin Valley School District GO, FSA Insured, 5.00%, 4/01/23 .................................. 2,915,000 3,067,892 University of Pittsburgh Revenue, Higher Education, Refunding, Series B, MBIA Insured, 5.00%, 6/01/21 ............................................................................ 10,000,000 10,279,900 Upper St. Clair Township School District GO, FSA Insured, 5.00%, 7/15/28 ............................................................ 1,000,000 1,030,000 Pre-Refunded, 5.20%, 7/15/27 ........................................................... 5,000,000 5,154,050
162 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN PENNSYLVANIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) PENNSYLVANIA (CONT.) Washington County Authority Revenue, Capital Projects and Equipment Program, Refunding, AMBAC Insured, 6.15%, 12/01/29 ............................................................ $ 2,200,000 $ 2,328,568 Washington County GO, Series A, AMBAC Insured, 5.125%, 9/01/27 ............................... 5,000,000 5,212,050 West Allegheny School District GO, Refunding, Series D, FGIC Insured, 4.75%, 9/01/19 ................................................................................ 2,000,000 2,056,380 9/01/20 ................................................................................ 3,805,000 3,901,761 -------------- 793,174,964 -------------- U.S. TERRITORIES 6.2% Puerto Rico Commonwealth GO, Public Improvement, Series A, 5.00%, 7/01/29 ......................................................................... 4,000,000 4,010,920 5.00%, 7/01/33 ......................................................................... 30,000,000 29,732,700 Pre-Refunded, 5.00%, 7/01/27 ........................................................... 7,000,000 7,577,360 Puerto Rico PBA Revenue, Guaranteed, Government Facilities, Series I, 5.00%, 7/01/36 ......... 5,950,000 5,894,546 Virgin Islands PFAR, Gross Receipts Taxes Loan Note, Radian Insured, 5.00%, 10/01/33 ......... 5,000,000 5,125,150 -------------- 52,340,676 -------------- TOTAL BONDS (COST $807,581,198) .............................................................. 845,515,640 -------------- ZERO COUPON/STEP-UP BONDS 0.7% PENNSYLVANIA 0.7% Pennsylvania HFAR, Future Income Growth Securities, SFM, Series 64, zero cpn. to 10/01/08, 5.25% thereafter, 4/01/30 ................................................................. 3,755,000 3,250,103 SFM, Refunding, Series 63A, 4/01/30 .................................................... 10,885,000 2,966,380 -------------- TOTAL ZERO COUPON/STEP-UP BONDS (COST $6,150,144) ............................................ 6,216,483 -------------- TOTAL LONG TERM INVESTMENTS (COST $813,731,342) .............................................. 851,732,123 -------------- SHORT TERM INVESTMENTS 0.3% BONDS 0.3% PENNSYLVANIA 0.3% (b)Chester County IDAR, Refunding, Daily VRDN and Put, 2.98%, 7/01/31 ........................... 300,000 300,000 (b)Delaware County IDA Airport Facilities Revenue, United Parcel Service Project, Daily VRDN and Put, 2.86%, 12/01/15 ...................................................................... 1,000,000 1,000,000 (b)Gettysburg Area IDAR, Brethren Home Community Project, Series A, Weekly VRDN and Put, 2.91%, 6/01/24 ............................................................................ 1,040,000 1,040,000 -------------- TOTAL SHORT TERM INVESTMENTS (COST $2,340,000) ............................................... 2,340,000 -------------- TOTAL INVESTMENTS (COST $816,071,342) 101.2% ................................................. 854,072,123 OTHER ASSETS, LESS LIABILITIES (1.2)% ........................................................ (10,092,825) -------------- NET ASSETS 100.0% ............................................................................ $ 843,979,298 ==============
See Selected Portfolio Abbreviations on page 169. (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 | 163 See Notes to Statements of Investments. | FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN VIRGINIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 98.0% BONDS 98.0% VIRGINIA 78.7% Abingdon IDA Hospital Facilities Revenue, Johnston Memorial Hospital, Refunding, 5.375%, 7/01/28 ................................................................................... $ 5,000,000 $ 5,131,000 Alexandria IDA Educational Facilities Revenue, Episcopal High School, Pre-Refunded, 5.875%, 1/01/29 ................................................................................... 2,500,000 2,701,525 Arlington County GO, Public Improvements, 5.00%, 2/01/22 ..................................... 2,060,000 2,166,729 Bedford County IDA, IDR, Nekoosa Packaging Corp. Project, Refunding, 5.60%, 12/01/25 ........................................................................ 2,650,000 2,503,959 6.30%, 12/01/25 ........................................................................ 2,000,000 2,020,860 Series A, 6.55%, 12/01/25 .............................................................. 5,000,000 5,114,200 Bristol Utility System Revenue, ETM, 5.00%, 7/15/21 .......................................... 1,245,000 1,316,189 Caroline County IDA Lease Revenue, AMBAC Insured, 5.125%, 6/15/34 ............................ 1,000,000 1,044,570 Chesapeake Toll Road Revenue, Expressway, Series A, 5.625%, 7/15/19 ................................................................................ 3,250,000 3,447,210 7/15/32 ................................................................................ 8,000,000 8,361,840 Dinwiddie County IDA Lease Revenue, Refunding, Series B, MBIA Insured, 5.00%, 2/15/30 ................................................................................ 1,410,000 1,459,731 2/15/34 ................................................................................ 3,155,000 3,257,538 Fairfax County EDA Revenue, National Wildlife Federation, MBIA Insured, 5.375%, 9/01/29 ................................................................................... 8,000,000 8,518,720 Fairfax County EDA Transportation Contract Revenue, Route 28 Project, MBIA Insured, 5.00%, 4/01/33 ................................................................................... 3,500,000 3,615,220 Fairfax County IDAR, Health Care, Inova Health System Project, Pre-Refunded, 6.00%, 8/15/26 .............................. 5,000,000 5,192,950 Inova Health System Project, Refunding, Series A, 5.00%, 8/15/25 ....................... 5,000,000 5,073,300 Inova Health System Project, Refunding, Series A, 5.00%, 8/15/18 ....................... 2,100,000 2,159,094 Fairfax County Redevelopment and Housing Authority MFHR, Cedar Ridge Apartments, GNMA Secured, 6.30%, 12/20/27 .................................. 4,700,000 4,788,125 Paul Spring Center, Refunding, Series A, FHA Insured, 5.90%, 6/15/17 ................... 1,000,000 1,041,830 Paul Spring Center, Refunding, Series A, FHA Insured, 6.00%, 12/15/28 .................. 1,000,000 1,040,350 Fairfax County Sewer Revenue, MBIA Insured, Pre-Refunded, 5.875%, 7/15/28 .................... 5,000,000 5,179,750 Fairfax County Water Authority Water Revenue, Pre-Refunded, 5.00%, 4/01/27 ........................................................... 2,830,000 3,052,098 Refunding, 5.00%, 4/01/27 .............................................................. 11,420,000 11,915,514 Fredericksburg IDA Hospital Facilities Revenue, Medicorp Health System Obligation, Refunding, AMBAC Insured, 5.25%, 6/15/23 .................................................. 10,000,000 10,405,000 Front Royal and Warren County IDA Lease Revenue, School and Capital Improvement, Series B, FSA Insured, 5.00%, 4/01/35 .................. 6,000,000 6,176,580 Series B, FSA Insured, 5.00%, 4/01/29 .................................................. 7,115,000 7,349,226 Gloucester County IDA Lease Revenue, Courthouse Project, MBIA Insured, 5.50%, 11/01/30 .................................................................................. 1,715,000 1,831,551 Greater Richmond Convention Center Authority Hotel Tax Revenue, Convention Center Expansion Project, Pre-Refunded, 6.125%, 6/15/29 ..................... 8,000,000 8,947,680 Convention Center Expansion Project, Pre-Refunded, 6.25%, 6/15/32 ...................... 8,175,000 9,185,920 Refunding, MBIA Insured, 5.00%, 6/15/30 ................................................ 8,000,000 8,288,240 Hampton Convention Center Revenue, Refunding, AMBAC Insured, 5.25%, 1/15/23 ......................................................................... 3,000,000 3,178,530 5.125%, 1/15/28 ........................................................................ 2,605,000 2,719,125 5.00%, 1/15/35 ......................................................................... 2,000,000 2,057,740
164 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN VIRGINIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) VIRGINIA (CONT.) Hampton Redevelopment and Housing Authority Senior Living Association Revenue, Refunding, Series A, GNMA Secured, 6.00%, 1/20/26 .................................................... $ 1,060,000 $ 1,094,344 Hampton Roads Regional Jail Authority Jail Facilities Revenue, Series A, MBIA Insured, 5.00%, 7/01/28 ................................................................................... 10,000,000 10,139,200 Hanover County Water and Sewer System Revenue, MBIA Insured, Pre-Refunded, 5.25%, 2/01/26 ................................................................................... 4,175,000 4,269,355 Harrisonburg GO, FSA Insured, 5.75%, 12/01/29 ................................................ 1,000,000 1,099,150 Henry County IDA Hospital Revenue, Memorial Hospital of Martinsville and Henry, Pre-Refunded, 6.00%, 1/01/27 .............................................................. 1,250,000 1,297,975 Isle Wight County IDA Environmental Improvement Revenue, International Paper Co. Project, Series A, 6.60%, 5/01/24 .................................................................. 2,000,000 2,169,140 Isle Wight County IDAR, International Paper Co. Project, Series A, 5.85%, 1/01/18 ............ 4,155,000 4,410,699 King George County IDA Lease Revenue, FSA Insured, 5.00%, 3/01/32 ............................ 3,595,000 3,714,857 Leesburg Utilities System Revenue, Refunding, MBIA Insured, 5.125%, 7/01/22 .................. 3,000,000 3,129,750 Loudoun County IDA Hospital Revenue, Loudoun Hospital Center, Series A, Pre-Refunded, 6.10%, 6/01/32 ............................................................................ 1,500,000 1,715,010 Loudoun County Sanitation Authority Water and Sewer Revenue, Refunding, FGIC Insured, Pre-Refunded, 5.125%, 1/01/26 ................................. 3,795,000 3,944,675 Refunding, FGIC Insured, Pre-Refunded, 5.125%, 1/01/30 ................................. 5,250,000 5,457,060 Series 96, FGIC Insured, Pre-Refunded, 5.25%, 1/01/26 .................................. 6,500,000 6,764,810 Series 96, FGIC Insured, Pre-Refunded, 5.25%, 1/01/30 .................................. 1,000,000 1,040,740 Lynchburg IDA Healthcare Facilities Revenue, Centra Health, Pre-Refunded, 5.20%, 1/01/28 ................................................................................... 8,000,000 8,374,960 Lynchburg Redevelopment and Housing Authority Revenue, Walden Pond III, Refunding, Series A, GNMA Secured, 6.20%, 7/20/27 .................................................... 1,000,000 1,027,230 Middle River Regional Jail Authority Jail Facility Revenue, MBIA Insured, 5.00%, 5/15/28 ..... 1,000,000 1,040,440 Middlesex County IDA Lease Revenue, School Facilities Project, MBIA Insured, Pre-Refunded, 5.875%, 8/01/21 ........................................................................ 1,420,000 1,565,919 6.10%, 8/01/26 ......................................................................... 1,725,000 1,915,509 Montgomery County IDA Lease Revenue, Series B, AMBAC Insured, Pre-Refunded, 5.50%, 1/15/22 ................................................................................... 1,000,000 1,099,710 Newport News IDA Mortgage Revenue, Mennowood Communities Inc., Series A, GNMA Secured, 6.25%, 8/01/36 ............................................................................ 2,950,000 3,060,891 Newport News Redevelopment and Housing Authority Revenue, Refunding, Series A, GNMA Secured, 5.85%, 12/20/30 ............................................................. 4,060,000 4,211,803 Norfolk Airport Authority Revenue, Series B, FGIC Insured, 5.125%, 7/01/31 ................... 1,440,000 1,466,813 Norfolk GO, Capital Improvements, Refunding, Series B, FSA Insured, 5.00%, 7/01/22 ........... 1,720,000 1,795,250 Norfolk IDAR, Health Care, Bon Secours Health, Series B, MBIA Insured, Pre-Refunded, 5.25%, 8/15/26 ................................................................................... 3,000,000 3,156,330 Norfolk Parking System Revenue, MBIA Insured, Pre-Refunded, 5.55%, 2/01/27 ............................................. 2,000,000 2,091,360 Refunding, Series A, MBIA Insured, 5.00%, 2/01/27 ...................................... 1,940,000 2,013,487 Norfolk Water Revenue, MBIA Insured, 5.90%, 11/01/25 ......................................... 5,000,000 5,149,100 Northwestern Regional Jail Authority Jail Facilities Revenue, MBIA Insured, 5.00%, 7/01/33 ................................................................................... 4,350,000 4,510,645 Orange County IDAR, Public Facility, Orange County Project, AMBAC Insured, 5.00%, 2/01/34 ................................................................................... 1,000,000 1,034,450
Quarterly Statements of Investments | 165 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN VIRGINIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) VIRGINIA (CONT.) Peninsula Ports Authority Hospital Facilities Revenue, Whittaker Memorial Hospital Project, Refunding, FHA Insured, 8.70%, 8/01/23 .................................................... $ 50,000 $ 57,532 Port Authority Commonwealth Port Fidelity Revenue, MBIA Insured, 4.75%, 7/01/28 .............. 1,500,000 1,502,235 Powhatan Co. EDA Lease Revenue, Virginia Capital Projects, AMBAC Insured, 5.25%, 7/15/33 ................................................................................... 1,000,000 1,054,580 Prince William County IDA, MFHR, Remington Place Apartments Project, Series A-1, AMBAC Insured, 6.00%, 12/01/33 ............................................................ 2,340,000 2,436,946 Prince William County Service Authority Water and Sewer System Revenue, FGIC Insured, 5.50%, 7/01/29 ........................................................... 5,000,000 5,398,100 Refunding, 5.00%, 7/01/32 .............................................................. 5,045,000 5,235,297 Richmond GO, FGIC Insured, 5.00%, 7/15/19 .................................................... 3,690,000 3,889,186 Richmond IDA Student Housing Revenue, University Real Estate Foundation, 5.55%, 1/01/31 ................................................................................... 4,400,000 4,733,652 Richmond Public Facilities COP, 800 Megahertz Project, Series A, AMBAC Insured, 5.00%, 8/01/22 ................................................................................... 2,000,000 2,076,640 Richmond Public Utility Revenue, FSA Insured, 5.00%, 1/15/35 ............................................................ 3,500,000 3,637,410 Refunding, FSA Insured, 5.00%, 1/15/33 ................................................. 8,500,000 8,729,075 Spotsylvania County Water and Sewer System Revenue, MBIA Insured, Pre-Refunded, 5.25%, 6/01/22 ......................................................................... 6,500,000 6,816,225 5.40%, 6/01/27 ......................................................................... 6,800,000 7,145,508 University of Virginia Revenue, General, 5.00%, 6/01/37 ................................................................ 12,000,000 12,431,040 Series A, 5.00%, 6/01/33 ............................................................... 14,000,000 14,413,840 Virginia Beach Water and Sewer Revenue, Pre-Refunded, 5.25%, 8/01/21 ........................................................... 1,865,000 2,005,658 System, Refunding, 5.00%, 10/01/30 ..................................................... 3,300,000 3,429,624 Virginia College Building Authority Educational Facilities Revenue, 21st Century College Program, 5.00%, 2/01/21 ........................................... 1,000,000 1,047,150 Hampton University Project, Pre-Refunded, 6.00%, 4/01/20 ............................... 1,500,000 1,662,675 Regent University Project, MBIA Insured, 5.125%, 10/01/21 .............................. 5,000,000 5,273,350 Regent University Project, MBIA Insured, 5.125%, 10/01/31 .............................. 4,050,000 4,197,015 Washington and Lee University, 5.75%, 1/01/19 .......................................... 50,000 50,110 Virginia Commonwealth Transportation Board Transportation Revenue, Northern Virginia Transportation Program, Refunding, Series A, 5.00%, 5/15/27 .......... 8,920,000 9,262,885 U.S. Route 58 Corridor Development Program, Series B, 5.00%, 5/15/24 ................... 2,000,000 2,081,040 U.S. Route 58 Corridor Development Program, Series B, 5.00%, 5/15/26 ................... 10,000,000 10,390,400 Virginia State HDA Rental Housing Revenue, Series J, 5.80%, 2/01/19 ............................................................... 2,000,000 2,076,680 Series L, 5.75%, 2/01/15 ............................................................... 1,000,000 1,049,150 Virginia State HDA, MFHR, Series C, 5.30%, 11/01/16 .............................................................. 1,000,000 1,040,620 Series H, 5.55%, 5/01/15 ............................................................... 1,000,000 1,040,320 Virginia State Public School Authority GO, School Financing, Series A, 5.00%, 8/01/20 ............................................................... 3,000,000 3,160,290 Series A, 5.00%, 8/01/21 ............................................................... 4,000,000 4,215,800 Series C, 5.00%, 8/01/22 ............................................................... 2,000,000 2,100,660 Series C, 5.00%, 8/01/26 ............................................................... 10,925,000 11,413,020
166 | Quarterly Statements of Investments FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN VIRGINIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONT.) BONDS (CONT.) VIRGINIA (CONT.) Virginia State Resources Authority Airports Revenue, Revolving Fund, Series A, 5.00%, 8/01/27 ................................................................................... $ 3,000,000 $ 3,070,920 Virginia State Resources Authority Infrastructure Revenue, Virginia Pooled Financing Program, Senior Series, 5.00%, 11/01/33 ............................................................ 5,000,000 5,154,500 Virginia State Resources Authority Water and Sewer System Revenue, Pooled Loan Program, Mandatory Put 11/01/07, Series A, ETM, 7.45%, 11/01/16 ............ 10,000 10,122 Rapidan Service Authority, Refunding, 5.30%, 10/01/18 .................................. 1,610,000 1,676,010 Tuckahoe Service District Project, 5.00%, 11/01/35 ..................................... 2,000,000 2,068,180 York County Sewer Revenue, Pre-Refunded, 5.875%, 6/01/24 ................................................................................ 500,000 545,695 6/01/29 ................................................................................ 1,500,000 1,637,085 -------------- 403,218,781 -------------- DISTRICT OF COLUMBIA 4.4% Metropolitan Washington D.C. Airports Authority General Airport Revenue, Refunding, Series A, FGIC Insured, 5.00%, 10/01/27 ..................................... 5,000,000 5,105,950 Series A, Pre-Refunded, 5.375%, 10/01/23 ............................................... 1,635,000 1,712,221 Series A, Pre-Refunded, 5.375%, 10/01/23 ............................................... 1,365,000 1,425,756 Series B, 5.75%, 10/01/20 .............................................................. 6,000,000 6,306,480 Metropolitan Washington D.C. Airport Authority System Revenue, Refunding, Series A, FGIC Insured, 5.00%, 10/01/25 ..................................... 1,000,000 1,027,290 Series B, FGIC Insured, 5.25%, 10/01/32 ................................................ 6,655,000 6,960,864 -------------- 22,538,561 -------------- U. S. TERRITORIES 14.9% Puerto Rico Commonwealth GO, Public Improvement, Series A, 5.00%, 7/01/29 ......................................................................... 8,000,000 8,021,840 5.125%, 7/01/31 ........................................................................ 3,315,000 3,358,924 5.00%, 7/01/33 ......................................................................... 2,000,000 1,982,180 FGIC Insured, Pre-Refunded, 5.00%, 7/01/32 ............................................. 15,000,000 16,237,200 Pre-Refunded, 5.125%, 7/01/31 .......................................................... 1,685,000 1,822,479 Puerto Rico Commonwealth Highway and Transportation Authority Highway Revenue, Series Y, 5.50%, 7/01/36 ......................................................................... 4,500,000 4,812,570 Pre-Refunded, 6.00%, 7/01/22 ........................................................... 1,000,000 1,030,740 Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Series D, Pre-Refunded, 5.375%, 7/01/36 ................................................ 5,000,000 5,475,350 Series D, Pre-Refunded, 5.25%, 7/01/38 ................................................. 3,000,000 3,263,520 Series G, 5.00%, 7/01/33 ............................................................... 5,000,000 4,955,450 Puerto Rico Commonwealth Infrastructure Financing Authority Special Tax Revenue, Series A, AMBAC Insured, Pre-Refunded, 5.00%, 7/01/28 ............................................... 5,000,000 5,224,750 Puerto Rico Electric Power Authority Power Revenue, Series HH, FSA Insured, 5.25%, 7/01/29 ................................................. 5,910,000 6,308,452 Series RR, XLCA Insured, 5.00%, 7/01/30 ................................................ 1,000,000 1,041,670 Puerto Rico HFC Revenue, MF Mortgage, Portfolio A-I, 7.50%, 4/01/22 ............................................. 785,000 785,565 Sixth Portfolio, Section 8, FHA Insured, Pre-Refunded, 7.75%, 12/01/26 ................. 20,000 20,451 Puerto Rico Municipal Finance Agency Revenue, Series A, FSA Insured, 5.00%, 8/01/27 .......... 2,580,000 2,680,388
Quarterly Statements of Investments | 167 FRANKLIN TAX-FREE TRUST STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN VIRGINIA 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 ........................................................................ $ 1,315,000 $ 1,361,630 Pre-Refunded, 5.375%, 7/01/33 .......................................................... 3,685,000 4,035,333 Puerto Rico Public Finance Corp. Revenue, Commonwealth Appropriation, Series E, Pre-Refunded, 5.70%, 8/01/25 .............................................................. 1,000,000 1,084,750 Virgin Islands PFAR, senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/15 ............................................................................... 1,500,000 1,566,675 10/01/18 ............................................................................... 1,500,000 1,560,975 -------------- 76,630,892 -------------- TOTAL LONG TERM INVESTMENTS (COST $478,106,656) .............................................. 502,388,234 -------------- SHORT TERM INVESTMENTS 0.4% BONDS 0.4% VIRGINIA 0.3% (a)Roanoke IDA Hospital Revenue, Carilion Health System, Refunding, Series D, Daily VRDN and Put, 3.02%, 7/01/27 ................................ 1,350,000 1,350,000 Series C, Daily VRDN and Put, 2.95%, 7/01/27 ........................................... 300,000 300,000 -------------- 1,650,000 -------------- U. S. TERRITORIES 0.1% (a)Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Series A, AMBAC Insured, Weekly VRDN and Put, 2.93%, 7/01/28 .............................. 400,000 400,000 -------------- TOTAL SHORT TERM INVESTMENTS (COST $2,050,000) ............................................... 2,050,000 -------------- TOTAL INVESTMENTS (COST $480,156,656) 98.4% .................................................. 504,438,234 OTHER ASSETS, LESS LIABILITIES 1.6% .......................................................... 8,022,054 -------------- NET ASSETS 100.0% ............................................................................ $ 512,460,288 ==============
See Selected Portfolio Abbreviations on page 169. (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, NOVEMBER 30, 2005 (UNAUDITED) 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. BAN - Bond Anticipation Notes 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 CDR - Community Development Revenue CFD - Community Facilities District CIFG - CDC IXIS Financial Guaranty 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 Assurance Inc. 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/Revenue HFC - Housing Finance Corp. HMR - Home Mortgage Revenue ID - Improvement District IDA - Industrial Development Authority/Agency IDAR - Industrial Development Authority Revenue IDB - Industrial Development Bond/Board IDBR - Industrial Development Board Revenue IDR - Industrial Development Revenue IPC - Industrial Pollution Control ISD - Independent School District 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 PUD - Public Utility District 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 XLCA - XL Capital Assurance Quarterly Statements of Investments | 169 See Notes to Statements of Investments. | FRANKLIN TAX-FREE TRUST NOTES TO STATEMENTS OF INVESTMENTS (UNAUDITED) Franklin Tax-Free Trust is registered under the Investment Company Act of 1940 as an open-end investment company, consisting of twenty-five series (the Funds). All Funds 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 November 30, 2005, the cost of investments and net unrealized appreciation (depreciation) 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 ........................................ $ 255,266,953 $ 858,475,620 $ 379,794,536 ======================================================== Unrealized appreciation .................................... $ 12,698,036 $ 44,093,162 $ 21,560,969 Unrealized depreciation .................................... (375,041) (1,733,237) (293,161) -------------------------------------------------------- Net unrealized appreciation (depreciation) ................. $ 12,322,995 $ 42,359,925 $ 21,267,808 ========================================================
-------------------------------------------------------- FRANKLIN FRANKLIN FRANKLIN FEDERAL CONNECTICUT DOUBLE INTERMEDIATE-TERM TAX-FREE TAX-FREE TAX-FREE INCOME FUND INCOME FUND INCOME FUND -------------------------------------------------------- Cost of investments ........................................ $ 293,460,858 $ 380,716,245 $ 548,210,019 ======================================================== Unrealized appreciation .................................... $ 13,495,500 $ 15,739,589 $ 12,031,866 Unrealized depreciation .................................... (480,776) (1,846,591) (2,082,292) -------------------------------------------------------- Net unrealized appreciation (depreciation) ................. $ 13,014,724 $ 13,892,998 $ 9,949,574 ========================================================
-------------------------------------------------------- FRANKLIN FEDERAL FRANKLIN FRANKLIN LIMITED-TERM FLORIDA FLORIDA TAX-FREE INSURED TAX-FREE TAX-FREE INCOME FUND INCOME FUND INCOME FUND -------------------------------------------------------- Cost of investments ........................................ $ 28,472,449 $ 152,463,698 $ 1,594,442,207 ======================================================== Unrealized appreciation .................................... $ 4,276 $ 8,746,509 $ 107,385,214 Unrealized depreciation .................................... (432,196) (200,144) (1,799,599) -------------------------------------------------------- Net unrealized appreciation (depreciation) ................. $ (427,920) $ 8,546,365 $ 105,585,615 ========================================================
170 | Quarterly Statements of Investments 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 ........................................ $ 228,542,646 $ 5,564,985,537 $ 1,772,458,314 ======================================================== Unrealized appreciation .................................... $ 12,316,730 $ 344,701,128 $ 98,393,448 Unrealized depreciation .................................... (872,851) (106,951,378) (1,508,117) -------------------------------------------------------- Net unrealized appreciation (depreciation) ................. $ 11,443,879 $ 237,749,750 $ 96,885,331 ========================================================
-------------------------------------------------------- FRANKLIN FRANKLIN FRANKLIN KENTUCKY LOUISIANA MARYLAND TAX-FREE TAX-FREE TAX-FREE INCOME FUND INCOME FUND INCOME FUND -------------------------------------------------------- Cost of investments ........................................ $ 114,315,270 $ 196,846,194 $ 398,552,227 ======================================================== Unrealized appreciation .................................... $ 5,365,042 $ 8,705,360 $ 17,001,043 Unrealized depreciation .................................... (304,479) (921,582) (600,346) -------------------------------------------------------- Net unrealized appreciation (depreciation) ................. $ 5,060,563 $ 7,783,778 $ 16,400,697 ========================================================
-------------------------------------------------------- FRANKLIN FRANKLIN FRANKLIN MASSACHUSETTS MICHIGAN MINNESOTA INSURED TAX-FREE INSURED TAX-FREE INSURED TAX-FREE INCOME FUND INCOME FUND INCOME FUND -------------------------------------------------------- Cost of investments ........................................ $ 466,974,938 $ 1,305,785,240 $ 557,588,372 ======================================================== Unrealized appreciation .................................... $ 26,305,889 $ 75,405,948 $ 21,611,022 Unrealized depreciation .................................... (739,253) (303,308) (1,295,378) -------------------------------------------------------- Net unrealized appreciation (depreciation) ................. $ 25,566,636 $ 75,102,640 $ 20,315,644 ========================================================
-------------------------------------------------------- FRANKLIN FRANKLIN FRANKLIN MISSOURI NEW JERSEY NORTH CAROLINA TAX-FREE TAX-FREE TAX-FREE INCOME FUND INCOME FUND INCOME FUND -------------------------------------------------------- Cost of investments ........................................ $ 575,141,258 $ 999,328,474 $ 537,307,644 ======================================================== Unrealized appreciation .................................... $ 28,158,643 $ 56,057,317 $ 25,816,209 Unrealized depreciation .................................... (2,257,939) (1,488,304) (1,146,330) -------------------------------------------------------- Net unrealized appreciation (depreciation) ................. $ 25,900,704 $ 54,569,013 $ 24,669,879 ========================================================
Quarterly Statements of Investments | 171 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 ........................................ $ 1,037,538,189 $ 650,252,720 $ 815,994,841 ======================================================== Unrealized appreciation .................................... $ 47,743,270 $ 33,276,531 $ 39,047,995 Unrealized depreciation .................................... (496,862) (1,066,898) (970,713) -------------------------------------------------------- Net unrealized appreciation (depreciation) ................. $ 47,246,408 $ 32,209,633 $ 38,077,282 ========================================================
---------------- FRANKLIN VIRGINIA TAX-FREE INCOME FUND ---------------- Cost of investments ........................................ $ 480,115,363 ================ Unrealized appreciation .................................... $ 25,335,732 Unrealized depreciation .................................... (1,012,861) ---------------- Net unrealized appreciation (depreciation) ................. $ 24,322,871 ================ 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. 172 | Quarterly Statements of Investments 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 January 23, 2006 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 January 23, 2006 By /S/ GALEN G. VETTER ---------------------- Galen G. Vetter Chief Financial Officer Date January 23, 2006 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. January 23, 2006 /S/JIMMY D. GAMBILL 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. January 23, 2006 /S/GALEN G. VETTER Galen G. Vetter Chief Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----