N-Q 1 nqform.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: 5/31/07 ------- Item 1. Schedule of Investments. Franklin Tax-Free Trust QUARTERLY STATEMENTS OF INVESTMENTS MAY 31, 2007 -------------------------------------------------------------------------------- CONTENTS Franklin Alabama Tax-Free Income Fund .................................... 3 Franklin Arizona Tax-Free Income Fund .................................... 7 Franklin Colorado Tax-Free Income Fund ................................... 14 Franklin Connecticut Tax-Free Income Fund ................................ 19 Franklin Double Tax-Free Income Fund ..................................... 23 Franklin Federal Intermediate-Term Tax-Free Income Fund .................. 27 Franklin Federal Limited-Term Tax-Free Income Fund ....................... 37 Franklin Florida Insured Tax-Free Income Fund ............................ 40 Franklin Florida Tax-Free Income Fund .................................... 43 Franklin Georgia Tax-Free Income Fund .................................... 51 Franklin High Yield Tax-Free Income Fund ................................. 55 Franklin Insured Tax-Free Income Fund .................................... 82 Franklin Kentucky Tax-Free Income Fund ................................... 98 Franklin Louisiana Tax-Free Income Fund .................................. 102 Franklin Maryland Tax-Free Income Fund ................................... 106 Franklin Massachusetts Insured Tax-Free Income Fund ...................... 110 Franklin Michigan Insured Tax-Free Income Fund ........................... 114 Franklin Minnesota Insured Tax-Free Income Fund .......................... 121 Franklin Missouri Tax-Free Income Fund ................................... 127 Franklin New Jersey Tax-Free Income Fund ................................. 133 Franklin North Carolina Tax-Free Income Fund ............................. 140 Franklin Ohio Insured Tax-Free Income Fund ............................... 146 Franklin Oregon Tax-Free Income Fund ..................................... 158 Franklin Pennsylvania Tax-Free Income Fund ............................... 165 Franklin Virginia Tax-Free Income Fund ................................... 171 Selected Portfolio Abbreviations ......................................... 176 Notes to Statements of Investments ....................................... 177 [LOGO](R) FRANKLIN TEMPLETON INVESTMENTS FRANKLIN o Templeton o Mutual Series Quarterly Statements of Investments | 1 This page intentionally left blank. Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN ALABAMA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 98.1% MUNICIPAL BONDS 98.1% ALABAMA 89.2% Alabama Building Renovation Finance Authority Revenue, Refunding, AMBAC Insured, 5.625%, 9/01/24 .......................................................................... $ 2,500,000 $ 2,632,875 Alabama Drinking Water Finance Authority Revenue, Revolving Fund Loan, Series A, AMBAC Insured, 5.25%, 8/15/24 ............................................................ 1,755,000 1,841,048 Alabama HFA, SFMR, Refunding, Series D-2, GNMA Secured, 5.75%, 10/01/23 .................... 555,000 561,599 Alabama State Docks Department Docks Facilities Revenue, MBIA Insured, Pre-Refunded, 5.50%, 10/01/22 .......................................................................... 1,000,000 1,041,880 Alabama Water Pollution Control Authority Revenue, Revolving Fund Loan, Series A, AMBAC Insured, 5.00%, 8/15/23 ............................................................ 4,435,000 4,596,877 Alabaster GO, wts., AMBAC Insured, Pre-Refunded, 5.00%, 9/01/24 ............................ 3,470,000 3,649,399 Alabaster Sewer Revenue, AMBAC Insured, 5.00%, 4/01/29 ..................................... 2,055,000 2,136,686 Athens GO, wts., XLCA Insured, 5.00%, 2/01/36 .............................................. 2,560,000 2,637,824 Auburn GO, Refunding, FSA Insured, 5.00%, 1/01/24 .......................................... 1,500,000 1,537,380 Auburn University General Fee Revenue, AMBAC Insured, 5.00%, 6/01/34 ........................................................... 2,000,000 2,069,080 Series A, FSA Insured, 5.00%, 6/01/32 ................................................... 5,590,000 5,857,929 Auburn University Revenues, Athletic, Series A, FSA Insured, 5.00%, 4/01/32 ................ 2,000,000 2,075,900 Baldwin County Eastern Shore Health Care Authority Hospital Revenue, Pre-Refunded, 5.75%, 4/01/27 .................................................................................. 1,000,000 1,035,130 Bessemer GO, wts., XLCA Insured, 5.00%, 2/01/35 ............................................ 1,990,000 2,073,600 Birmingham GO, Capital Improvement, Series B, AMBAC Insured, Pre-Refunded, 5.00%, 12/01/32 ................................................................................. 7,000,000 7,377,160 Birmingham Southern College Private Educational Building Authority Tuition Revenue, Refunding, 5.35%, 12/01/19 ............................................................... 1,000,000 1,005,240 Central Elmore Water and Sewer Authority Revenue, Water, MBIA Insured, 5.00%, 1/01/29 ...... 4,290,000 4,481,377 Clarke and Mobile Counties Gas District Revenue, AMBAC Insured, Pre-Refunded, 5.875%, 12/01/23 ................................................................................. 4,000,000 4,271,120 Coffee County PBA, Building Revenue, MBIA Insured, 5.00%, 9/01/27 .......................... 2,145,000 2,220,332 Cullman and Jefferson Counties Gas District Gas Revenue, MBIA Insured, 5.85%, 7/01/24 ...... 2,000,000 2,144,940 DCH Health Care Authority Health Care Facilities Revenue, 5.125%, 6/01/36 .................. 4,330,000 4,428,551 Etowah County Board of Education Special Tax, School wts., FSA Insured, 5.00%, 9/01/24 ................................................................................. 4,235,000 4,400,123 9/01/28 ................................................................................. 2,000,000 2,074,660 9/01/33 ................................................................................. 2,500,000 2,587,800 Fairfield GO, wts., Refunding, AMBAC Insured, 5.00%, 2/01/29 ............................... 1,500,000 1,558,365 Fairfield IDB Environmental Improvement Revenue, USX Corp. Project, Refunding, 5.45%, 9/01/14 .................................................................................. 2,000,000 2,061,100 Florence Electric Revenue, wts., FSA Insured, 5.25%, 6/01/19 ............................... 1,415,000 1,462,657 Florence GO, wts., Series B, FGIC Insured, 5.00%, 9/01/23 .................................. 2,500,000 2,612,800 Franklin County GO, wts., Series B, AMBAC Insured, 5.125%, 10/01/33 ........................ 2,000,000 2,096,020 Gulf Shores GO, wts., AMBAC Insured, 6.00%, 9/01/21 ........................................ 770,000 779,048 Homewood Educational Building Authority Revenue, Educational Facilities, Samford University, Series A, MBIA Insured, 5.00%, 12/01/34 .................................................. 5,000,000 5,203,100 Houston County Health Care Authority Revenue, AMBAC Insured, Pre-Refunded, 6.125%, 10/01/25 ........................................... 1,000,000 1,061,000 AMBAC Insured, Pre-Refunded, 6.25%, 10/01/30 ............................................ 3,150,000 3,350,813 Series A, AMBAC Insured, 5.25%, 10/01/30 ................................................ 5,000,000 5,303,400
Quarterly Statements of Investments | 3 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN ALABAMA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) ALABAMA (CONTINUED) Huntsville Capital Improvement GO, Series A, AMBAC Insured, 5.00%, 2/01/23 ................. $ 1,000,000 $ 1,036,280 Huntsville Health Care Authority Revenue, Series A, MBIA Insured, 5.00%, 6/01/24 .......................................................................... 1,100,000 1,147,817 Pre-Refunded, 5.40%, 6/01/22 ............................................................ 4,000,000 4,333,320 Pre-Refunded, 5.50%, 6/01/27 ............................................................ 3,820,000 4,155,320 Huntsville PBA, Lease Revenue, Municipal Justice and Public Safety Center, MBIA Insured, 5.00%, 10/01/25 ................................................................................ 5,000,000 5,197,250 10/01/29 ................................................................................ 4,000,000 4,148,840 Jacksonville State University Revenue, Tuition and Fee, MBIA Insured, 5.00%, 12/01/22 ...... 3,000,000 3,101,550 Jefferson County Limited Obligation School wts. Revenue, Series A, 5.00%, 1/01/24 .......... 2,000,000 2,071,240 Jefferson County Sewer Revenue, Capital Improvement wts., Series A, FGIC Insured, Pre-Refunded, 5.375%, 2/01/36 ......... 6,000,000 6,209,220 wts., ETM, 7.50%, 9/01/13 ............................................................... 200,000 216,066 wts., Series D, FGIC Insured, Pre-Refunded, 5.00%, 2/01/32 .............................. 3,000,000 3,152,610 Lauderdale County and Florence Health Care Authority Revenue, Coffee Health Group, Series A, MBIA Insured, 5.625%, 7/01/21 ......................................................................... 3,000,000 3,182,760 5.375%, 7/01/29 ......................................................................... 3,095,000 3,205,368 Pre-Refunded, 5.375%, 7/01/29 ........................................................... 1,905,000 1,982,191 Limestone County Water and Sewer Authority Water Revenue, AMBAC Insured, 5.00%, 12/01/29 ................................................................................ 1,540,000 1,606,959 12/01/31 ................................................................................ 3,910,000 4,065,696 Madison County Board of Education Capital Outlay GO, Tax Anticipation wts., Series A, AMBAC Insured, 5.00%, 9/01/34 ............................................................ 2,000,000 2,077,340 Madison GO, wts., AMBAC Insured, Pre-Refunded, 5.35%, 2/01/26 ............................................. 2,410,000 2,551,322 Refunding, XLCA Insured, 4.75%, 12/01/36 ................................................ 2,455,000 2,469,902 Madison Water and Wastewater Board Water and Sewer Revenue, Refunding, Series A, XLCA Insured, 4.75%, 12/01/31 ............................................................ 8,485,000 8,588,432 Marshall County Health Care Authority GO, Refunding, AMBAC Insured, 4.75%, 2/01/33 ......... 3,000,000 3,015,990 Marshall County Health Care Authority Hospital Revenue, Series A, 5.75%, 1/01/32 ........... 2,170,000 2,269,668 Mobile County Board School Commissioners GO, Capital Outlay wts., Series B, AMBAC Insured, 5.10%, 3/01/22 .......................................................................... 2,265,000 2,360,968 5.125%, 3/01/31 ......................................................................... 8,230,000 8,585,865 Morgan County GO, wts., AMBAC Insured, 5.00%, 4/01/29 ...................................... 1,975,000 2,053,506 Moulton Water Works Board Water Revenue, MBIA Insured, 5.375%, 1/01/32 ..................... 1,935,000 2,035,968 Muscle Shoals GO, wts., MBIA Insured, Pre-Refunded, 5.50%, 8/01/30 ......................... 2,150,000 2,292,481 Orange Beach Sewer Revenue, wts., MBIA Insured, 5.00%, 2/01/30 ............................. 5,000,000 5,221,050 Orange Beach Water Sewer and Fire Protection Authority Revenue, MBIA Insured, 5.00%, 5/15/30 ................................................................................. 1,500,000 1,561,800 5/15/35 ................................................................................. 2,000,000 2,071,520 Oxford GO, School wts., AMBAC Insured, Pre-Refunded, 6.00%, 5/01/30 ........................ 4,275,000 4,528,165 Phenix City GO, School wts., Series B, XLCA Insured, 5.00%, 8/01/28 ........................ 2,060,000 2,151,320 Sheffield GO, wts., AMBAC Insured, 5.125%, 5/01/33 ......................................... 2,610,000 2,728,076 St. Clair County Board of Education wts., Tax Anticipation wts., Refunding, Series C, FSA Insured, 5.85%, 2/01/29 ........................................ 1,530,000 1,589,900 Series C, FSA Insured, Pre-Refunded, 5.85%, 2/01/29 ..................................... 3,285,000 3,424,350
4 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN ALABAMA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) ALABAMA (CONTINUED) Sylacauga GO, wts., AMBAC Insured, Pre-Refunded, 5.50%, 6/01/25 ............................ $ 1,700,000 $ 1,798,396 Tallassee GO, Water Gas and Sewer wts., AMBAC Insured, Pre-Refunded, 5.25%, 5/01/31 .................................................................................. 1,135,000 1,191,727 Troy Public Educational Building Authority Dormitory Revenue, Troy University Housing LLC Project, Series A, CIFG Insured, 5.00%, 9/01/32 .......................................... 5,000,000 5,186,950 Troy State University Student Fee Revenue, MBIA Insured, 5.00%, 11/01/21 ................... 2,215,000 2,311,796 Trussville GO, wts., Series A, FGIC Insured, 5.00%, 10/01/36 ............................... 4,740,000 4,929,410 University of Alabama General Revenue, Series A, MBIA Insured, 5.00%, 7/01/29 ............................................................ 1,000,000 1,042,270 XLCA Insured, 5.00%, 7/01/32 ............................................................ 5,600,000 5,852,448 University of Montevallo Revenue, FSA Insured, Pre-Refunded, 5.30%, 5/01/22 ................ 1,940,000 2,042,587 University of North Alabama Revenue, General Fee, Series A, FSA Insured, 5.375%, 11/01/17 .................................... 4,395,000 4,552,780 Student Housing, FGIC Insured, 5.00%, 11/01/29 .......................................... 2,995,000 3,107,792 Valley Special Care Facilities Financing Authority Revenue, Lanier Memorial Hospital, Series A, 5.65%, 11/01/22 .......................................................................... 3,465,000 3,514,480 Warrior River Water Authority Water Revenue, FSA Insured, 5.40%, 8/01/29 .......................................................................... 4,250,000 4,422,380 5.50%, 8/01/34 .......................................................................... 4,735,000 4,934,533 --------------- 249,504,472 --------------- U.S. TERRITORIES 8.9% PUERTO RICO 7.4% Puerto Rico Commonwealth GO, Public Improvement, FSA Insured, Pre-Refunded, 5.25%, 7/01/27 ............................................... 1,495,000 1,576,612 FSA Insured, Pre-Refunded, 5.125%, 7/01/30 .............................................. 1,885,000 1,979,080 Refunding, FSA Insured, 5.25%, 7/01/27 .................................................. 1,005,000 1,049,059 Refunding, FSA Insured, 5.125%, 7/01/30 ................................................. 1,115,000 1,157,849 Series A, 5.125%, 7/01/31 ............................................................... 3,550,000 3,635,591 Series A, Pre-Refunded, 5.125%, 7/01/31 ................................................. 1,450,000 1,522,370 Puerto Rico Electric Power Authority Power Revenue, Series II, FSA Insured, Pre-Refunded, 5.125%, 7/01/26 .......................................................................... 5,000,000 5,344,200 Puerto Rico PBA Guaranteed Revenue, Government Facilities, Refunding, Series D, 5.25%, 7/01/27 ..................................................... 760,000 789,754 Refunding, Series G, 5.00%, 7/01/26 ..................................................... 1,000,000 1,026,980 Series D, Pre-Refunded, 5.25%, 7/01/27 .................................................. 2,305,000 2,450,146 --------------- 20,531,641 --------------- VIRGIN ISLANDS 1.5% Virgin Islands PFAR, senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/13 ................................................................................ 1,700,000 1,747,668 10/01/22 ................................................................................ 2,300,000 2,358,788 --------------- 4,106,456 --------------- TOTAL U.S. TERRITORIES ..................................................................... 24,638,097 --------------- TOTAL LONG TERM INVESTMENTS (COST $264,666,252) ............................................ 274,142,569 ---------------
Quarterly Statements of Investments | 5 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN ALABAMA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM INVESTMENTS 0.9% MUNICIPAL BONDS 0.9% ALABAMA 0.6% a Jefferson County Sewer Revenue, Capital Improvement wts., Series A, FGIC Insured, Weekly VRDN and Put, 3.82%, 2/01/42 ....................................................... $ 1,350,000 $ 1,350,000 a Mobile County IDA Pollution Control Revenue, ExxonMobil Project, Refunding, Daily VRDN and Put, 3.91%, 7/15/32 ....................................................................... 175,000 175,000 a West Jefferson IDB, PCR, Alabama Power Co. Project, Refunding, Daily VRDN and Put, 3.96%, 6/01/28 ................................................................................... 100,000 100,000 --------------- 1,625,000 --------------- U.S. TERRITORIES 0.3% PUERTO RICO 0.3% a Puerto Rico Commonwealth Government Development Bank Revenue, Refunding, MBIA Insured, Weekly VRDN and Put, 3.61%, 12/01/15 ..................................................... 1,000,000 1,000,000 --------------- TOTAL SHORT TERM INVESTMENTS (COST $2,625,000) .............................................. 2,625,000 --------------- TOTAL INVESTMENTS (COST $267,291,252) 99.0% ................................................. 276,767,569 OTHER ASSETS, LESS LIABILITIES 1.0% ......................................................... 2,926,266 --------------- NET ASSETS 100.0% ........................................................................... $ 279,693,835 ===============
See Selected Portfolio Abbreviations on page 176. a Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. 6 | See Notes to Statements of Investments. | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN ARIZONA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 98.6% MUNICIPAL BONDS 98.6% ARIZONA 80.6% Arizona Health Facilities Authority Hospital System Revenue, John C. Lincoln Health Network, Pre-Refunded, 5.75%, 12/01/32 ........................... $ 3,280,000 $ 3,591,830 Phoenix Baptist Hospital, MBIA Insured, ETM, 6.25%, 9/01/11 ............................. 1,340,000 1,370,994 Arizona Health Facilities Authority Revenue, Catholic Healthcare West, Series A, Pre-Refunded, 6.625%, 7/01/20 ....................... 6,390,000 6,932,511 Series A, 5.00%, 1/01/24 ................................................................ 6,000,000 6,188,640 Arizona School Facilities Board Revenue, State School Improvement, Pre-Refunded, 5.00%, 7/01/19 .......................................................................... 2,000,000 2,088,160 Arizona State Board of Regents COP, University of Arizona Main Campus, Series A-1, AMBAC Insured, Pre-Refunded, 5.125%, 6/01/25 .................................................. 2,000,000 2,095,720 Arizona State Municipal Financing Program COP, Refunding, Series 14, AMBAC Insured, 5.00%, 8/01/33 .......................................................................... 1,000,000 1,032,000 Arizona State University COP, Arizona State University Project, Series 2002, MBIA Insured, Pre-Refunded, 5.00%, 7/01/20 ........................................................................ 5,475,000 5,762,438 Arizona State University Project, Series 2002, MBIA Insured, Pre-Refunded, 5.00%, 7/01/21 ........................................................................ 5,965,000 6,278,163 Arizona State University Project, Series 2002, MBIA Insured, Pre-Refunded, 5.10%, 7/01/23 ........................................................................ 3,545,000 3,747,313 Arizona State University Project, Series 2002, MBIA Insured, Pre-Refunded, 5.10%, 7/01/24 ........................................................................ 1,875,000 1,982,006 Arizona State University Project, Series 2002, MBIA Insured, Pre-Refunded, 5.10%, 7/01/25 ........................................................................ 2,640,000 2,790,665 Downtown Campus/Mercado Project, Series A, MBIA Insured, 5.80%, 7/01/24 ................. 1,350,000 1,351,877 Research Infrastructure Projects, AMBAC Insured, 5.00%, 9/01/30 ......................... 17,250,000 17,960,527 Research Infrastructure Projects, Series A, AMBAC Insured, 5.00%, 9/01/27 ............... 4,415,000 4,601,578 Arizona State University Revenues, FGIC Insured, 5.00%, 7/01/23 ............................................................ 2,890,000 2,993,202 FGIC Insured, 5.00%, 7/01/25 ............................................................ 2,250,000 2,328,278 System, FGIC Insured, Pre-Refunded, 5.875%, 7/01/25 ..................................... 1,000,000 1,051,830 System, Refunding, AMBAC Insured, 5.00%, 7/01/27 ........................................ 1,895,000 1,995,170 Arizona Student Loan Acquisition Authority Student Loan Revenue, junior sub., Refunding, Series B-1, 6.15%, 5/01/29 ...................................... 1,000,000 1,049,050 Refunding, Senior Series A-1, 5.90%, 5/01/24 ............................................ 1,500,000 1,574,610 Arizona Tourism and Sports Authority Tax Revenue, Multipurpose Stadium Facility, Series A, MBIA Insured, 5.00%, 7/01/28 ............................................................ 7,000,000 7,255,430 Douglas Community Housing Corp. MFR, Rancho La Perilla, Series A, GNMA Secured, 6.125%, 7/20/41 ................................................................................. 2,235,000 2,340,894 Downtown Phoenix Hotel Corp. Revenue, Senior Series A, FGIC Insured, 5.00%, 7/01/40 ........................................... 26,485,000 27,455,410 Sub Series B, FGIC Insured, 5.00%, 7/01/36 .............................................. 25,095,000 26,032,800 Sub Series B, FGIC Insured, 5.00%, 7/01/40 .............................................. 12,845,000 13,315,641 Glendale IDA Hospital Revenue, John C. Lincoln Health, Refunding, 5.00%, 12/01/32 ......................................................................... 4,025,000 4,044,562 5.00%, 12/01/42 ......................................................................... 12,870,000 12,880,296 Series B, 5.00%, 12/01/37 ............................................................... 3,000,000 3,008,220
Quarterly Statements of Investments | 7 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN ARIZONA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) ARIZONA (CONTINUED) Glendale IDAR, Midwestern University, Refunding, 5.00%, 5/15/31 .............................................................. $ 7,080,000 $ 7,383,449 Series A, 5.375%, 5/15/28 .............................................................. 8,000,000 8,176,320 Series A, Connie Lee Insured, Pre-Refunded, 6.00%, 5/15/16 ............................. 455,000 459,550 Series A, Connie Lee Insured, Pre-Refunded, 6.00%, 5/15/26 ............................. 340,000 343,400 Series A, MBIA Insured, 5.375%, 5/15/28 ................................................ 1,050,000 1,074,623 Glendale Municipal Property Corp. Excise Tax Revenue, Series A, AMBAC Insured, 5.00%, 7/01/33 ................................................................................. 1,000,000 1,037,030 Glendale Water and Sewer Revenue, sub. lien, AMBAC Insured, 5.00%, 7/01/23 ................ 2,000,000 2,083,820 Goodyear Community Facilities General District No. 1 GO, MBIA Insured, 5.20%, 7/15/25 ..... 1,500,000 1,565,820 Goodyear Community Facilities Utilities District No. 1 GO, MBIA Insured, 5.20%, 7/15/25 ... 1,000,000 1,043,880 Greater Arizona Development Authority Infrastructure Revenue, Series A, MBIA Insured, 5.00%, 8/01/26 .......................................................................... 4,425,000 4,639,037 Marana Municipal Property Corp. Municipal Facilities Revenue, Refunding, MBIA Insured, 5.25%, 7/01/22 .......................................................................... 1,100,000 1,127,016 Maricopa County GO, USD No. 41, Gilbert, 6.25%, 7/01/15 ......................................................................... 160,000 164,091 Pre-Refunded, 6.25%, 7/01/15 ........................................................... 1,840,000 1,889,202 Maricopa County Hospital Revenue, Sun Health Corp., 5.30%, 4/01/29 ......................................................................... 7,095,000 7,185,248 Refunding, 5.80%, 4/01/08 .............................................................. 3,870,000 3,920,504 Refunding, 5.90%, 4/01/09 .............................................................. 2,120,000 2,172,724 Refunding, 6.125%, 4/01/18 ............................................................. 4,380,000 4,462,913 Refunding, 5.00%, 4/01/35 .............................................................. 12,090,000 12,213,922 Maricopa County IDA, MFHR, Senior National Health Facilities II, Project A, FSA Insured, ETM, 5.50%, 1/01/18 .............................................................................. 2,000,000 2,202,320 MFHR, Villas de Merced Apartment Project, Series A, GNMA Secured, 5.50%, 12/20/37 ...... 570,000 572,970 MFHR, Western Groves Apartments, Series A-1, AMBAC Insured, 5.30%, 12/01/22 ............ 1,650,000 1,684,287 SFMR, GNMA Secured, 6.25%, 12/01/30 .................................................... 35,000 35,144 Maricopa County IDA Health Facilities Revenue, Catholic Healthcare West, Refunding, Series A, 5.375%, 7/01/23 ......................... 7,000,000 7,380,240 Catholic Healthcare West, Refunding, Series A, 5.50%, 7/01/26 .......................... 12,250,000 12,923,872 Catholic Healthcare West, Refunding, Series A, ACA Insured, 5.00%, 7/01/16 ............. 1,785,000 1,812,703 Catholic Healthcare West, Refunding, Series A, ACA Insured, 5.00%, 7/01/21 ............. 9,600,000 9,722,208 Catholic Healthcare West Project, Refunding, Series A, 5.00%, 7/01/16 .................. 9,535,000 9,702,053 Catholic Healthcare West Project, Series A, Pre-Refunded, 5.00%, 7/01/16 ............... 780,000 780,733 Mayo Clinic, 5.00%, 11/15/36 ........................................................... 25,750,000 26,251,610 Maricopa County IDA Health Facility Revenue, Catholic Healthcare West, Series A, 5.25%, 7/01/32 ................................................................................. 10,000,000 10,396,200 Maricopa County IDA Hospital Facility Revenue, Mayo Clinic Hospital, 5.25%, 11/15/37 .................................................. 16,000,000 16,328,320 Mayo Clinic Hospital, AMBAC Insured, 5.25%, 11/15/37 ................................... 3,000,000 3,055,110 Samaritan Health Services, Series A, MBIA Insured, ETM, 7.00%, 12/01/16 ................ 1,890,000 2,261,895
8 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN ARIZONA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) ARIZONA (CONTINUED) Maricopa County IDA Senior Living Healthcare Revenue, Immanuel Care, Refunding, Series A, GNMA Secured, 5.00%, 8/20/35 ............................................................ $ 1,725,000 $ 1,768,953 Maricopa County Pollution Control Corp. PCR, Public Service Co. Palo Verde Project, Series A, AMBAC Insured, 5.05%, 5/01/29 ................................................. 11,500,000 11,928,490 Mesa Utility System Revenue, FGIC Insured, 5.00%, 7/01/21 ........................................................... 5,000,000 5,220,400 MBIA Insured, Pre-Refunded, 5.00%, 7/01/26 ............................................. 10,000,000 10,667,500 MBIA Insured, Pre-Refunded, 5.00%, 7/01/27 ............................................. 10,500,000 11,200,875 MBIA Insured, Pre-Refunded, 5.00%, 7/01/28 ............................................. 11,000,000 11,734,250 Refunding, Second Series, FGIC Insured, 4.50%, 7/01/28 ................................. 10,000,000 9,986,200 Nogales Municipal Development Authority Inc. GO, MBIA Insured, 5.00%, 6/01/36 ............. 6,075,000 6,356,941 Northern Arizona University COP, AMBAC Insured, 5.00%, 9/01/30 .......................................................... 6,360,000 6,621,968 Northern Arizona University Research Projects, AMBAC Insured, 5.00%, 9/01/25 ........... 2,130,000 2,242,954 Northern Arizona University Research Projects, AMBAC Insured, 5.00%, 9/01/27 ........... 2,355,000 2,476,542 Northern Arizona University Revenues, FGIC Insured, Pre-Refunded, 5.00%, 6/01/30 .......... 1,000,000 1,051,740 Peoria Water and Sewer Revenue, FGIC Insured, 5.00%, 7/01/19 .............................. 1,300,000 1,328,171 Phoenix Airport Revenue, Refunding, Series B, MBIA Insured, 6.20%, 7/01/10 ...................................... 700,000 700,679 Refunding, Series C, MBIA Insured, 6.30%, 7/01/10 ...................................... 1,680,000 1,681,680 Refunding, Series C, MBIA Insured, 6.40%, 7/01/11 ...................................... 1,785,000 1,786,767 Refunding, Series C, MBIA Insured, 6.40%, 7/01/12 ...................................... 570,000 570,564 Series D, MBIA Insured, 6.30%, 7/01/10 ................................................. 1,800,000 1,801,800 Series D, MBIA Insured, 6.40%, 7/01/11 ................................................. 3,825,000 3,828,787 Series D, MBIA Insured, 6.40%, 7/01/12 ................................................. 820,000 820,812 Phoenix Civic Improvement Corp. Airport Revenue, senior lien, Series B, FGIC Insured, 5.25%, 7/01/22 ................................................................................ 3,000,000 3,125,760 7/01/23 ................................................................................ 5,000,000 5,207,300 7/01/27 ................................................................................ 15,250,000 15,818,977 Phoenix Civic Improvement Corp. Distribution Revenue, Capital Appreciation, Civic Plaza, Series B, FGIC Insured, zero cpn. to 7/01/13, 5.50% thereafter, 7/01/27 ................................................................................ 3,945,000 3,336,957 7/01/28 ................................................................................ 2,000,000 1,697,160 7/01/29 ................................................................................ 2,000,000 1,702,060 7/01/36 ................................................................................ 5,000,000 4,325,350 7/01/37 ................................................................................ 7,000,000 6,061,020 Phoenix Civic Improvement Corp. Excise Tax Revenue, Adams Street Garage Project, senior lien, Series B, 5.35%, 7/01/24 ..................... 2,985,000 3,089,982 Municipal Courthouse Project, senior lien, Series A, 5.375%, 7/01/29 ................... 18,310,000 18,962,935 Subordinated, Civic Plaza Expansion Project, Series A, FGIC Insured, 5.00%, 7/01/30 .... 5,525,000 5,774,730 Subordinated, Civic Plaza Expansion Project, Series A, FGIC Insured, 5.00%, 7/01/35 .... 12,000,000 12,517,560 Phoenix Civic Improvement Corp. Wastewater System Revenue, junior lien, FGIC Insured, Pre-Refunded, 6.00%, 7/01/19 ............................................. 3,000,000 3,216,300 FGIC Insured, Pre-Refunded, 6.00%, 7/01/20 ............................................. 3,670,000 3,934,607 FGIC Insured, Pre-Refunded, 6.00%, 7/01/24 ............................................. 24,715,000 26,496,951 MBIA Insured, 5.00%, 7/01/28 ........................................................... 2,000,000 2,087,020 MBIA Insured, 5.00%, 7/01/29 ........................................................... 3,405,000 3,555,263
Quarterly Statements of Investments | 9 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN ARIZONA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) ARIZONA (CONTINUED) Phoenix Civic Improvement Corp. Wastewater System Revenue, junior lien, (continued) Refunding, FGIC Insured, 5.00%, 7/01/20 ................................................ $ 9,710,000 $ 10,063,929 Refunding, FGIC Insured, 5.125%, 7/01/21 ............................................... 10,000,000 10,399,500 Refunding, FGIC Insured, 5.00%, 7/01/24 ................................................ 7,050,000 7,280,182 Phoenix Civic Improvement Corp. Water System Revenue, junior lien, Refunding, FGIC Insured, 5.00%, 7/01/26 ........................................................... 3,250,000 3,369,080 MBIA Insured, 5.00%, 7/01/29 ........................................................... 5,000,000 5,246,850 Phoenix GO, 5.25%, 7/01/22 ......................................................................... 5,420,000 5,645,689 a Various Purpose, Series A, 4.50%, 7/01/25 .............................................. 15,000,000 14,981,100 Various Purpose, Series B, 5.00%, 7/01/27 .............................................. 8,360,000 8,798,900 Phoenix HFC Mortgage Revenue, Section 8 Project, Refunding, Series A, MBIA Insured, 6.90%, 1/01/23 ................................................................. 1,125,000 1,126,755 Phoenix IDA, SFMR, Series 1B, GNMA Secured, 6.20%, 6/01/22 ................................ 15,000 15,043 Phoenix IDA Government Office Lease Revenue, Capitol Mall LLC II Project, AMBAC Insured, 5.00%, 9/15/21 ............................. 4,300,000 4,456,649 Capitol Mall LLC II Project, AMBAC Insured, 5.00%, 9/15/28 ............................. 4,000,000 4,126,480 Capitol Mall LLC II Project, Refunding, AMBAC Insured, 5.00%, 9/15/26 .................. 3,445,000 3,613,702 Capitol Mall Project, AMBAC Insured, Pre-Refunded, 5.375%, 9/15/22 ..................... 2,000,000 2,094,840 Capitol Mall Project, AMBAC Insured, Pre-Refunded, 5.50%, 9/15/27 ...................... 22,300,000 23,442,652 Capitol Mall Project, Refunding, AMBAC Insured, 5.00%, 9/15/27 ......................... 4,615,000 4,837,720 Phoenix IDA Hospital Revenue, Series B, Connie Lee Insured, Pre-Refunded, 5.75%, 12/01/16 ........................................................................ 3,500,000 3,604,545 Phoenix Municipal Housing Revenue, Fillmore Gardens Project, Refunding, 6.30%, 6/01/09 .... 915,000 920,225 Phoenix Street and Highway Revenue, Refunding, 6.60%, 7/01/07 ............................. 610,000 610,531 Pima County IDA, SFMR, Refunding, Series A, 7.625%, 2/01/12 ................................................... 155,000 155,157 Series B-1, GNMA Secured, 6.10%, 5/01/31 ............................................... 30,000 30,112 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 6,233,040 Refunding, Series A, 5.00%, 1/01/31 .................................................... 1,375,000 1,422,204 Series A, 5.00%, 1/01/37 ............................................................... 20,500,000 21,474,160 San Luis Civic Improvement Corp. Municipal Facilities Excise Tax Revenue, XLCA Insured, 5.00%, 7/01/38 ................................................................. 8,650,000 8,975,326 Scottsdale GO, Refunding, 5.00%, 7/01/22 .................................................. 3,000,000 3,134,850 Scottsdale IDA Hospital Revenue, Scottsdale Healthcare, Pre-Refunded, 5.70%, 12/01/21 ........................................................................ 2,000,000 2,156,040 5.80%, 12/01/31 ........................................................................ 14,865,000 16,085,268 Scottsdale Municipal Property Corp. Excise Tax Revenue, Pre-Refunded, 5.00%, 7/01/24 ........................................................... 5,000,000 5,333,750 Pre-Refunded, 5.00%, 7/01/30 ........................................................... 7,580,000 8,169,724 Series A, Pre-Refunded, 5.00%, 7/01/34 ................................................. 2,000,000 2,133,500
10 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN ARIZONA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) ARIZONA (CONTINUED) Show Low IDA Hospital Revenue, Navapache Regional Medical Center, Radian Insured, 5.00%, 12/01/25 ............................................................................... $ 1,420,000 $ 1,476,743 12/01/30 ............................................................................... 1,815,000 1,879,723 12/01/35 ............................................................................... 2,000,000 2,061,360 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 3,176,190 Tempe Arizona IDA Lease Revenue, State University Foundation, AMBAC Insured, 5.00%, 7/01/28 ................................................................................ 4,275,000 4,442,580 7/01/34 ................................................................................ 11,510,000 11,923,784 Tolleson IDA, MFR, Copper Cove Project, Series A, GNMA Secured, 5.40%, 11/20/22 ........................................................................ 1,090,000 1,125,022 5.45%, 11/20/32 ........................................................................ 1,285,000 1,330,193 Tucson Airport Authority Inc. Revenue, sub. lien, AMBAC Insured, 5.35%, 6/01/31 ........... 10,000,000 10,321,900 Tucson IDA Lease Revenue, University of Arizona/Marshall Foundation, Series A, AMBAC Insured, 5.00%, 7/15/32 ................................................................. 1,000,000 1,029,460 Tucson Water Revenue, Series A, FGIC Insured, Pre-Refunded, 5.00%, 7/01/23 ................................... 3,600,000 3,758,688 Series D, FGIC Insured, Pre-Refunded, 5.25%, 7/01/23 ................................... 3,000,000 3,090,630 University Medical Center Corp. Revenue, 5.00%, 7/01/35 ................................... 7,000,000 7,092,540 University of Arizona COP, Parking and Student Housing, AMBAC Insured, Pre-Refunded, 5.75%, 6/01/24 ............... 1,115,000 1,158,006 University of Arizona Projects, Series B, AMBAC Insured, 5.00%, 6/01/26 ................ 7,070,000 7,332,580 University of Arizona Projects, Series B, AMBAC Insured, 5.00%, 6/01/28 ................ 7,000,000 7,252,560 University of Arizona Projects, Series B, AMBAC Insured, 5.00%, 6/01/31 ................ 5,565,000 5,756,881 University of Arizona Projects, Series B, AMBAC Insured, Pre-Refunded, 5.125%, 6/01/22 ...................................................................... 2,250,000 2,379,083 University of Arizona University Revenues, Arizona Board of Regents System, Series A, FGIC Insured, 5.80%, 6/01/24 ......................................................... 2,000,000 2,098,020 Yavapai County IDA Hospital Facility Revenue, Regional Medical Center, Series A, 6.00%, 8/01/33 .......................................................................... 2,000,000 2,124,260 Yavapai County USD No. 28 Camp Verde GO, Refunding, FGIC Insured, 6.00%, 7/01/09 .......... 75,000 75,122 Yuma IDA Hospital Revenue, Yuma Regional Medical Center, FSA Insured, Pre-Refunded, 5.50%, 8/01/21 ............................................................ 2,015,000 2,161,047 Yuma Municipal Property Corp. Revenue, Municipal Facilities, AMBAC Insured, 5.00%, 7/01/25 .......................................................................... 3,100,000 3,176,973 --------------- 831,998,882 --------------- U.S. TERRITORIES 18.0% PUERTO RICO 17.6% Children's Trust Fund Puerto Rico Tobacco Settlement Revenue, Asset-Backed Bonds, Refunding, 5.50%, 5/15/39 ........................................................ 5,000,000 5,241,850 Puerto Rico Commonwealth GO, Public Improvement, Series A, 5.375%, 7/01/28 ................ 3,355,000 3,492,119 Puerto Rico Commonwealth Highway and Transportation Authority Highway Revenue, Series Y, Pre-Refunded, 5.00%, 7/01/36 ......................................................................... 10,000,000 10,762,200 5.50%, 7/01/36 ......................................................................... 8,550,000 9,524,358
Quarterly Statements of Investments | 11 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN ARIZONA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) U.S. TERRITORIES (CONTINUED) PUERTO RICO (CONTINUED) Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Series B, Pre-Refunded, 6.00%, 7/01/39 ................................................. $ 19,600,000 $ 21,001,400 Series D, Pre-Refunded, 5.375%, 7/01/36 ................................................ 5,000,000 5,355,300 Puerto Rico Electric Power Authority Power Revenue, Series II, Pre-Refunded, 5.25%, 7/01/31 ................................................................................. 15,000,000 16,104,000 Puerto Rico HFC Revenue, Sixth Portfolio, Section 8, FHA Insured, Pre-Refunded, 7.75%, 12/01/26 ................................................................................ 40,000 40,000 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 ..................... 4,665,000 4,669,852 Hospital Auxilio Mutuo Obligation, Series A, MBIA Insured, 6.25%, 7/01/24 .............. 2,790,000 2,793,962 Puerto Rico PBA Guaranteed Revenue, Government Facilities, Refunding, Series D, 5.375%, 7/01/33 ................................................... 8,190,000 8,560,597 Series D, Pre-Refunded, 5.375%, 7/01/33 ................................................ 21,810,000 23,307,911 Series I, 5.375%, 7/01/34 .............................................................. 40,000,000 42,396,800 Series I, 5.00%, 7/01/36 ............................................................... 7,000,000 7,201,250 Puerto Rico Public Finance Corp. Revenue, Commonwealth Appropriation, Series E, 5.50%, 8/01/29 ......................................................................... 3,660,000 3,819,759 Pre-Refunded, 5.50%, 8/01/29 ........................................................... 11,340,000 12,119,965 University of Puerto Rico Revenues, University System, Refunding, Series P, 5.00%, 6/01/30 ................................................................................. 5,280,000 5,465,486 --------------- 181,856,809 --------------- VIRGIN ISLANDS 0.4% Virgin Islands PFAR, senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/13 ... 2,500,000 2,570,100 Virgin Islands Water and Power Authority Water System Revenue, Refunding, 5.50%, 7/01/17 ................................................................................. 1,500,000 1,551,120 --------------- 4,121,220 --------------- TOTAL U.S. TERRITORIES .................................................................... 185,978,029 --------------- TOTAL LONG TERM INVESTMENTS (COST $975,898,811) ........................................... 1,017,976,911 --------------- SHORT TERM INVESTMENTS 1.1% MUNICIPAL BONDS 1.1% ARIZONA 0.2% b Arizona Health Facilities Authority Revenue, Arizona Voluntary Hospital Federation, Series B, Weekly VRDN and Put, 3.76%, 10/01/15 .......................................... 1,820,000 1,820,000 ---------------
12 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN ARIZONA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) U.S. TERRITORIES 0.9% PUERTO RICO 0.9% b Puerto Rico Commonwealth Government Development Bank Revenue, Refunding, MBIA Insured, Weekly VRDN and Put, 3.61%, 12/01/15 ........................................... $ 7,750,000 $ 7,750,000 b Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Series A, AMBAC Insured, Weekly VRDN and Put, 3.63%, 7/01/28 ................... 1,870,000 1,870,000 --------------- TOTAL U.S. TERRITORIES .................................................................... 9,620,000 --------------- TOTAL SHORT TERM INVESTMENTS (COST $11,440,000) ........................................... 11,440,000 --------------- TOTAL INVESTMENTS (COST $987,338,811) 99.7% ............................................... 1,029,416,911 OTHER ASSETS, LESS LIABILITIES 0.3% ....................................................... 3,504,440 --------------- NET ASSETS 100.0% ......................................................................... $ 1,032,921,351 ===============
See Selected Portfolio Abbreviations on page 176. a Security purchased on a when-issued or delayed delivery basis. b Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. Quarterly Statements of Investments | See Notes to Statements of Investments. | 13 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN COLORADO TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 98.5% MUNICIPAL BONDS 98.5% COLORADO 94.5% Adams County School District No. 14 GO, FSA Insured, 5.125%, 12/01/31 ...................... $ 6,325,000 $ 6,728,029 Arapahoe County MFR, Housing Development Reserve South Creek, Series A, FSA Insured, 6.45%, 6/01/32 ........................................................................... 3,105,000 3,243,421 Arapahoe County Water and Wastewater GO, Refunding, Series A, MBIA Insured, 5.125%, 12/01/32 ................................................................................. 15,000,000 15,629,100 Arkansas River Power Authority Power Revenue, Improvement, XLCA Insured, 5.25%, 10/01/32 ................................................................................. 1,690,000 1,808,114 10/01/40 ................................................................................. 8,200,000 8,721,356 Arvada IDR, Wanco Inc. Project, 5.25%, 12/01/07 .......................................................................... 25,000 25,043 5.80%, 12/01/17 .......................................................................... 480,000 484,440 Aspen Valley Hospital District Revenue, Refunding, 5.00%, 10/15/26 ......................... 1,670,000 1,701,797 Aurora COP, AMBAC Insured, Pre-Refunded, 5.50%, 12/01/30 ................................... 4,935,000 5,206,672 Aurora Sewer Improvement Revenue, first lien, MBIA Insured, 5.00%, 8/01/29 ................. 7,285,000 7,706,729 Boulder County Development Revenue, University Corp. for Atmospheric Research, MBIA Insured, 5.00%, 9/01/33 ............................................................. 1,500,000 1,551,525 Boulder County Hospital Revenue, Longmont United Hospital Project, Pre-Refunded, 5.50%, 12/01/12 ......................................................................... 1,000,000 1,017,010 5.60%, 12/01/17 ......................................................................... 3,385,000 3,443,933 Bowles Metropolitan District GO, Refunding, FSA Insured, 5.00%, 12/01/33 ................... 2,500,000 2,596,725 Broadlands Metropolitan District No. 2 GO, Refunding, MBIA Insured, 5.25%, 12/01/34 ........ 8,655,000 9,188,061 Broomfield COP, Master Facilities Lease Purchase, AMBAC Insured, 5.625%, 12/01/22 ....................... 1,535,000 1,595,372 Refunding, AMBAC Insured, 6.00%, 12/01/29 ............................................... 2,000,000 2,098,200 Broomfield Sales and Use Tax Revenue, Refunding and Improvement, Series A, AMBAC Insured, 5.00%, 12/01/27 .......................................................................... 10,000,000 10,363,700 Broomfield Sewer Activity Enterprise Sewer and Wastewater Revenue, AMBAC Insured, 5.00%, 12/01/31 ................................................................................. 7,500,000 7,754,250 Centennial Downs Metropolitan District GO, Refunding, AMBAC Insured, 5.00%, 12/01/28 ....... 1,560,000 1,627,252 Colorado Department of Transportation COP, MBIA Insured, 5.00%, 6/15/34 .................... 6,915,000 7,193,052 Colorado Educational and Cultural Facilities Authority Revenue, Student Housing, University of Colorado Foundation Project, AMBAC Insured, 5.00%, 7/01/27 ............................................................................... 6,545,000 6,766,679 Student Housing, University of Colorado Foundation Project, AMBAC Insured, 5.00%, 7/01/32 ............................................................................... 10,005,000 10,316,155 University of Denver Project, AMBAC Insured, Pre-Refunded, 5.375%, 3/01/23 .............. 1,050,000 1,106,322 University of Denver Project, Refunding, Series B, FGIC Insured, Pre-Refunded, 5.25%, 3/01/35 ............................................................................... 3,250,000 3,554,460 Colorado Health Facilities Authority Revenue, Catholic Health Initiatives, Series A, Pre-Refunded, 5.00%, 12/01/28 ..................... 1,800,000 1,840,230 Community Provider Pooled Loan Program, Series A, FSA Insured, 7.25%, 7/15/17 ............ 88,000 88,177 Evangelical Lutheran, Series A, 5.25%, 6/01/34 ........................................... 3,500,000 3,624,075 Evangelical Lutheran Project, 5.25%, 6/01/31 ............................................. 4,000,000 4,147,880 Hospital, Longmont United Hospital Project, Refunding, Series B, Radian Insured, 5.00%, 12/01/25 ................................................................................ 3,050,000 3,161,935 Hospital, Longmont United Hospital Project, Refunding, Series B, Radian Insured, 5.00%, 12/01/26 ................................................................................ 3,205,000 3,317,624
14 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN COLORADO TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) COLORADO (CONTINUED) Colorado Health Facilities Authority Revenue, (continued) Hospital, Longmont United Hospital Project, Refunding, Series B, Radian Insured, 5.00%, 12/01/27 .............................................................................. $ 3,365,000 $ 3,480,621 Hospital, Longmont United Hospital Project, Refunding, Series B, Radian Insured, 5.00%, 12/01/30 .............................................................................. 3,000,000 3,096,060 Hospital, Parkview Medical Center Inc., Refunding, 5.00%, 9/01/20 ....................... 890,000 915,970 Hospital, Parkview Medical Center Inc., Refunding, 5.00%, 9/01/25 ....................... 1,000,000 1,021,600 Hospital Improvement, North Colorado Medical Center Inc. Project, FSA Insured, Pre-Refunded, 5.75%, 5/15/24 .......................................................... 5,000,000 5,233,200 Kaiser Permanente, Series A, ETM, 5.35%, 11/01/16 ....................................... 8,000,000 8,140,800 Parkview Medical Center Inc. Project, 5.25%, 9/01/18 .................................... 1,660,000 1,672,931 Parkview Medical Center Inc. Project, 5.30%, 9/01/25 .................................... 1,615,000 1,625,821 Portercare Adventist Health, Pre-Refunded, 6.625%, 11/15/26 ............................. 2,500,000 2,803,050 Portercare Adventist Health, Pre-Refunded, 6.50%, 11/15/31 .............................. 5,500,000 6,138,825 Colorado HFAR, MF, Project II, Series A-2, 5.30%, 10/01/23 ............................................. 1,645,000 1,699,647 MF, Project II, Series A-2, 5.375%, 10/01/32 ............................................ 3,605,000 3,690,439 MFH, Castle High, Series A, AMBAC Insured, 5.90%, 12/01/20 .............................. 2,630,000 2,726,179 MFH Insured Mortgage, Series A-2, FHA Insured, 6.00%, 10/01/28 .......................... 1,000,000 1,020,790 MFH Insured Mortgage, Series C-3, 6.05%, 10/01/32 ....................................... 1,535,000 1,579,346 Colorado Springs Hospital Revenue, 6.375%, 12/15/30 ........................................................................ 3,785,000 4,082,387 Pre-Refunded, 6.375%, 12/15/30 .......................................................... 3,715,000 4,051,542 Colorado Springs Utilities Revenue, Refunding and Improvement, Series A, 5.375%, 11/15/26 ................................... 10,000,000 10,061,300 sub. lien, System Improvement, Series B, 5.00%, 11/15/33 ................................ 4,000,000 4,135,560 Colorado State COP, University of Colorado Denver Health Sciences Center Fitzsimons Academic Facility Project, Series B, MBIA Insured, 5.00%, 11/01/30 ............................. 5,000,000 5,230,150 Colorado Water Resources and Power Development Authority Clean Water Revenue, Series A, 6.15%, 9/01/11 .......................................................................... 125,000 125,251 6.30%, 9/01/14 .......................................................................... 25,000 25,053 Colorado Water Resources and Power Development Authority Small Water Resource Revenue, Series A, FGIC Insured, 5.80%, 11/01/20 ......................................................................... 800,000 846,696 Pre-Refunded, 5.80%, 11/01/20 ........................................................... 1,200,000 1,275,936 Colorado Water Resources and Power Development Authority Water Resources Revenue, Arapahoe County Water Improvement, Series E, MBIA Insured, 5.00%, 12/01/35 .............. 10,475,000 10,976,648 East Cherry Creek Valley Water Sanitary District, MBIA Insured, 5.00%, 11/15/30 ......... 2,590,000 2,728,436 Parker Water and Sanitary District, MBIA Insured, 5.00%, 9/01/30 ........................ 5,000,000 5,231,250 Commerce City COP, AMBAC Insured, 5.00%, 12/15/37 .......................................... 13,975,000 14,577,462 Denver City and County Airport Revenue, Refunding, Series A, AMBAC Insured, 5.625%, 11/15/23 .................................... 4,500,000 4,684,500 Refunding, Series B, 5.50%, 11/15/33 .................................................... 5,000,000 5,256,900 Series D, 7.75%, 11/15/13 ............................................................... 1,000,000 1,101,920 Denver City and County COP, Series B, AMBAC Insured, Pre-Refunded, 5.50%, 12/01/25 ......... 7,000,000 7,442,050 Denver Convention Center Hotel Authority Revenue, Refunding, Senior, XLCA Insured, 5.00%, 12/01/30 ................................................................................. 15,000,000 15,581,100
Quarterly Statements of Investments | 15 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN COLORADO TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) COLORADO (CONTINUED) Denver Health and Hospital Authority Healthcare Revenue, Refunding, Series A, 5.25%, 12/01/31 ..................................................... $ 9,250,000 $ 9,493,275 Series A, Pre-Refunded, 6.00%, 12/01/23 .................................................. 1,000,000 1,084,000 Series A, Pre-Refunded, 6.00%, 12/01/31 .................................................. 5,400,000 5,853,600 Series A, Pre-Refunded, 6.25%, 12/01/33 .................................................. 3,250,000 3,714,588 Douglas County School District No. RE-1 Douglas and Elbert Counties GO, Improvement, Series B, FSA Insured, 5.00%, 12/15/30 .................................................... 1,835,000 1,918,034 Dove Valley Metropolitan District Arapahoe County GO, Refunding, FSA Insured, 5.00%, 11/01/35 .................................................................................. 5,875,000 6,132,795 E-470 Public Highway Authority Revenue, Capital Appreciation, Series A, MBIA Insured, zero cpn., 9/01/33 ......................... 3,000,000 768,120 Capital Appreciation, Series B, MBIA Insured, zero cpn., 9/01/32 ......................... 7,800,000 2,113,020 Capital Appreciation, Series B, MBIA Insured, zero cpn., 9/01/34 ......................... 14,075,000 3,397,283 Refunding, Senior Series A, MBIA Insured, 5.00%, 9/01/26 ................................. 5,000,000 5,059,750 Senior Series A, MBIA Insured, 5.75%, 9/01/29 ............................................ 4,575,000 4,925,171 Senior Series A, MBIA Insured, 5.75%, 9/01/35 ............................................ 10,825,000 11,653,545 El Paso County Mortgage Revenue, Stetson Meadows, Series A, GNMA Secured, 5.25%, 12/20/32 ................................................................................. 1,890,000 1,943,865 El Paso County School District No. 2 GO, FGIC Insured, Pre-Refunded, 5.25%, 12/01/26 ....... 4,000,000 4,233,880 El Paso County School District No. 38 GO, Pre-Refunded, 6.00%, 12/01/24 .................... 1,500,000 1,605,855 Garfield County Building Corp. COP, AMBAC Insured, Pre-Refunded, 5.75%, 12/01/19 ................................................................................ 1,500,000 1,585,425 12/01/24 ................................................................................ 1,000,000 1,056,950 Greeley MFR, Housing Mortgage, Creek Stone Project, FHA Insured, 5.95%, 7/01/28 ............ 1,000,000 1,020,680 La Junta Hospital Revenue, Ark Valley Regional Medical Center Project, 5.75%, 4/01/14 .......................................................................... 2,090,000 2,154,706 6.00%, 4/01/19 .......................................................................... 1,000,000 1,034,220 6.10%, 4/01/24 .......................................................................... 1,000,000 1,034,880 Logan County School District No. RE-1 Valley Sterling GO, MBIA Insured, Pre-Refunded, 5.00%, 12/15/30 .......................................................................... 6,470,000 6,967,414 Northwest Parkway Public Highway Authority Revenue, Series A, AMBAC Insured, 5.125%, 6/15/26 .......................................................... 7,550,000 7,902,056 AMBAC Insured, 5.125%, 6/15/31 .......................................................... 4,465,000 4,658,736 FSA Insured, 5.25%, 6/15/41 ............................................................. 3,460,000 3,649,781 Pitkin County Open Space Acquisition GO, AMBAC Insured, Pre-Refunded, 5.375%, 12/01/30 ................................................................................. 2,940,000 3,089,969 Pueblo Board Waterworks Water Revenue, Series A, FSA Insured, Pre-Refunded, 6.00%, 11/01/21 ................................................................................. 4,300,000 4,599,366 Pueblo County COP, Public Parking, 6.90%, 7/01/15 .......................................... 360,000 360,425 Pueblo County School District No. 070 Pueblo Rural GO, FGIC Insured, Pre-Refunded, 6.00%, 12/01/19 ................................................................................. 3,995,000 4,209,611 Regional Transportation District Sales Tax Revenue, Fastracks Project, Refunding, Series A, FSA Insured, 4.50%, 11/01/35 ....................................... 10,000,000 9,733,700 Series A, AMBAC Insured, 5.00%, 11/01/31 ................................................ 2,585,000 2,723,659 Series A, AMBAC Insured, Pre-Refunded, 5.00%, 11/01/31 .................................. 4,415,000 4,768,862 Saddle Rock South Metropolitan District No. 4 GO, Refunding, FSA Insured, 4.50%, 12/01/34 ................................................................................. 5,000,000 4,861,600
16 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN COLORADO TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) COLORADO (CONTINUED) Summit County Sports Facilities Revenue, Keystone Resorts Project, Ralston Purina Co., Refunding, 7.875%, 9/01/08 ................................................................ $ 2,750,000 $ 2,888,573 Thornton Development Authority Tax Increment Revenue, North Washington Street Urban Renewal, MBIA Insured, 5.00%, 12/01/29 .................................................... 6,100,000 6,378,831 Thornton Water Enterprise Revenue, MBIA Insured, 5.00%, 12/01/29 ........................... 7,010,000 7,330,427 University of Colorado COP, Series A, AMBAC Insured, Pre-Refunded, 5.00%, 6/01/33 .......... 6,070,000 6,430,194 University of Colorado Enterprise System Revenue, AMBAC Insured, 5.00%, 6/01/28 ............ 5,065,000 5,315,464 University of Colorado Hospital Authority Revenue, Series A, 5.00%, 11/15/37 .......................................................................... 2,000,000 2,007,100 5.25%, 11/15/39 .......................................................................... 3,000,000 3,097,140 Pre-Refunded, 5.60%, 11/15/25 ............................................................ 1,900,000 2,023,405 University of Northern Colorado Revenue, Auxiliary Facilities Systems, Refunding and Improvement, AMBAC Insured, 5.00%, 6/01/31 ................................................................................. 3,000,000 3,076,200 FSA Insured, 5.00%, 6/01/30 .............................................................. 4,580,000 4,797,962 Ute Water Conservancy District Water Revenue, MBIA Insured, 5.75%, 6/15/20 ................. 5,000,000 5,298,800 Westminster Building Authority COP, MBIA Insured, 5.25%, 12/01/22 .......................... 1,555,000 1,630,884 --------------- 459,450,539 --------------- U.S. TERRITORIES 4.0% PUERTO RICO 2.9% a Puerto Rico Electric Power Authority Power Revenue, Series TT, 5.00%, 7/01/26 .............. 5,000,000 5,221,100 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 1,350,633 Puerto Rico PBA Guaranteed Revenue, Government Facilities, Refunding, Series D, 5.375%, 7/01/33 ..................................................... 2,120,000 2,215,930 Series I, 5.375%, 7/01/34 ................................................................ 5,000,000 5,299,600 --------------- 14,087,263 --------------- VIRGIN ISLANDS 1.1% Virgin Islands PFAR, senior lien, Fund Loan Notes, Refunding, Series A, 5.40%, 10/01/12 .......................................................................... 2,500,000 2,567,875 5.50%, 10/01/22 .......................................................................... 2,500,000 2,563,900 --------------- 5,131,775 --------------- TOTAL U.S. TERRITORIES ..................................................................... 19,219,038 --------------- TOTAL LONG TERM INVESTMENTS (COST $458,693,812) ............................................ 478,669,577 ---------------
Quarterly Statements of Investments | 17 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN COLORADO TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM INVESTMENTS 0.8% MUNICIPAL BONDS 0.8% COLORADO 0.8% b Colorado Educational and Cultural Facilities Authority Revenue, National Jewish Federal Bond Program, Daily VRDN and Put, 3.88%, 2/01/35 ...................................................... $ 2,330,000 $ 2,330,000 Series A-4, Daily VRDN and Put, 3.88%, 2/01/34 .......................................... 725,000 725,000 Series A-7, Weekly VRDN and Put, 3.88%, 7/01/29 ......................................... 700,000 700,000 --------------- TOTAL SHORT TERM INVESTMENTS (COST $3,755,000) ............................................. 3,755,000 --------------- TOTAL INVESTMENTS (COST $462,448,812) 99.3% ................................................ 482,424,577 OTHER ASSETS, LESS LIABILITIES 0.7% ........................................................ 3,585,576 --------------- NET ASSETS 100.0% .......................................................................... $ 486,010,153 ===============
See Selected Portfolio Abbreviations on page 176. 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. 18 | See Notes to Statements of Investments. | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN CONNECTICUT TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS 97.1% MUNICIPAL BONDS 97.1% CONNECTICUT 78.2% Bridgeport GO, Series A, FGIC Insured, Pre-Refunded, 5.875%, 7/15/19 ...................... $ 1,000,000 $ 1,069,190 Connecticut State Airport Revenue, Bradley International Airport, Series A, FGIC Insured, 5.125%, 10/01/26 ........................................................................ 3,000,000 3,093,390 Connecticut State Development Authority First Mortgage Gross Revenue, Health Care Project, 5.75%, 12/01/23 ........................................................................ 750,000 780,000 Baptist Homes Inc. Project, Refunding, Radian Insured, 5.625%, 9/01/22 ................. 2,000,000 2,109,840 Church Homes Inc., Refunding, 5.80%, 4/01/21 ........................................... 4,000,000 4,054,760 Elim Park Baptist Home, Refunding, Series A, 5.375%, 12/01/18 .......................... 1,100,000 1,108,767 Connecticut State Development Authority PCR, Connecticut Light and Water, Refunding, Series A, 5.85%, 9/01/28 ................................................................ 5,500,000 5,721,430 Connecticut State Development Authority Revenue, Life Care Facilities, Seabury Project, Refunding, Radian Insured, 5.00%, 9/01/21 ............................................... 2,000,000 2,034,520 Connecticut State Development Authority Water Facility Revenue, Bridgeport Hydraulic Co. Project, 6.15%, 4/01/35 ......................................................................... 1,000,000 1,025,190 6.00%, 9/01/36 ......................................................................... 10,000,000 10,134,900 Connecticut State GO, Series A, FSA Insured, 4.75%, 12/15/22 ................................................. 1,000,000 1,042,010 Series B, FSA Insured, 5.00%, 5/01/26 .................................................. 3,040,000 3,219,026 Series B, Pre-Refunded, 5.00%, 6/15/20 ................................................. 10,000,000 10,429,000 Series B, Pre-Refunded, 5.00%, 6/15/22 ................................................. 2,000,000 2,104,200 Series D, 5.00%, 11/01/26 .............................................................. 2,000,000 2,108,880 Connecticut State Health and Educational Facilities Authority Revenue, Brunswick School, Series A, MBIA Insured, 5.00%, 7/01/29 ............................... 5,000,000 5,119,800 Canterbury School, Series B, Radian Insured, 5.00%, 7/01/36 ............................ 1,000,000 1,030,110 Catholic Health East, Series F, MBIA Insured, 5.75%, 11/15/29 .......................... 3,250,000 3,414,482 Child Care Facilities Program, Series C, AMBAC Insured, 5.625%, 7/01/29 ................ 1,215,000 1,276,479 Child Care Facilities Program, Series E, AMBAC Insured, 5.00%, 7/01/31 ................. 1,000,000 1,034,330 Child Care Facilities Program, Series F, Assured Guaranty, 5.00%, 7/01/31 .............. 2,525,000 2,602,921 Connecticut College, Series D-1, MBIA Insured, Pre-Refunded, 5.75%, 7/01/30 ............ 1,000,000 1,064,920 Connecticut College, Series G, MBIA Insured, 4.50%, 7/01/37 ............................ 2,000,000 1,948,460 Danbury Hospital Issue, Refunding, Series G, AMBAC Insured, 5.75%, 7/01/29 ............. 3,500,000 3,656,345 Eastern Connecticut Health Network, Refunding, Series A, Radian Insured, 6.00%, 7/01/25 .............................................................................. 2,965,000 3,137,148 Eastern Connecticut Health Network, Refunding, Series C, Radian Insured, 5.125%, 7/01/30 .............................................................................. 2,500,000 2,582,475 Eastern Connecticut Health Network, Series A, Radian Insured, Pre-Refunded, 6.00%, 7/01/25 .............................................................................. 5,980,000 6,407,570 Eastern Connecticut Health Network, Series A, Radian Insured, Pre-Refunded, 6.00%, 7/01/25 .............................................................................. 250,000 268,025 Fairfield University, Series I, MBIA Insured, Pre-Refunded, 5.25%, 7/01/25 ............. 1,500,000 1,559,220 Fairfield University, Series I, MBIA Insured, Pre-Refunded, 5.50%, 7/01/29 ............. 8,000,000 8,355,360 Fairfield University, Series J, MBIA Insured, 5.00%, 7/01/29 ........................... 3,000,000 3,132,240 Greenwich Academy, Series B, FSA Insured, Pre-Refunded, 5.00%, 3/01/32 ................. 4,210,000 4,417,848 Hartford University, Series G, Radian Insured, 5.25%, 7/01/26 .......................... 5,000,000 5,326,450 Hebrew Home and Hospital, Series B, FHA Insured, 5.15%, 8/01/28 ........................ 3,505,000 3,610,606 Horace Bushnell Memorial Hall, Series A, MBIA Insured, 5.625%, 7/01/29 ................. 1,000,000 1,042,610
Quarterly Statements of Investments | 19 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN CONNECTICUT TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) CONNECTICUT (CONTINUED) Connecticut State Health and Educational Facilities Authority Revenue, (continued) Hospital for Special Care, Refunding, Series B, 5.375%, 7/01/17 ........................ $ 3,000,000 $ 3,062,160 Hospital for Special Care, Refunding, Series B, 5.50%, 7/01/27 ......................... 3,200,000 3,266,272 Lutheran General Health Care System, ETM, 7.375%, 7/01/19 .............................. 450,000 532,800 Middlesex Hospital, Series L, FSA Insured, 5.00%, 7/01/32 .............................. 3,500,000 3,663,590 Miss Porter's School Issue, Series B, AMBAC Insured, 5.00%, 7/01/26 .................... 2,730,000 2,891,152 Miss Porter's School Issue, Series B, AMBAC Insured, 5.00%, 7/01/36 .................... 3,415,000 3,587,662 New Horizons Village Project, 7.30%, 11/01/16 .......................................... 2,905,000 2,913,018 Norwich Free Academy, Series A, AMBAC Insured, 5.00%, 7/01/34 .......................... 1,675,000 1,743,725 Sacred Heart University, Refunding, Series E, Radian Insured, 5.00%, 7/01/28 ........... 4,000,000 4,059,960 Sacred Heart University, Series C, 6.50%, 7/01/16 ...................................... 235,000 237,667 Sacred Heart University, Series C, 6.625%, 7/01/26 ..................................... 785,000 793,823 Series B, MBIA Insured, 5.00%, 7/01/33 ................................................. 2,000,000 2,080,560 St. Mary's Hospital, Refunding, Series E, 5.50%, 7/01/20 ............................... 4,615,000 4,414,617 Trinity College, Series G, AMBAC Insured, Pre-Refunded, 5.00%, 7/01/31 ................. 5,425,000 5,710,680 Trinity College, Series H, MBIA Insured, 5.00%, 7/01/26 ................................ 1,855,000 1,939,161 University of Connecticut Foundation, Series A, Pre-Refunded, 5.375%, 7/01/29 .......... 1,250,000 1,284,063 Village Families and Children, Series A, AMBAC Insured, 5.00%, 7/01/32 ................. 1,000,000 1,038,650 Westover School, Series A, Radian Insured, 5.70%, 7/01/30 .............................. 2,000,000 2,118,600 William W. Backus Hospital, Series G, FSA Insured, 5.00%, 7/01/35 ...................... 4,720,000 4,917,013 Windham Community Memorial Hospital, Series C, 6.00%, 7/01/20 .......................... 5,000,000 5,012,250 Yale University, Series Y-1, 5.00%, 7/01/35 ............................................ 15,000,000 15,730,200 Yale-New Haven Hospital, Series J-1, AMBAC Insured, 5.00%, 7/01/31 ..................... 12,000,000 12,570,000 Connecticut State HFAR, Housing Mortgage Finance Program, Refunding, Sub Series E-2, 5.20%, 11/15/21 ........... 1,840,000 1,867,324 Housing Mortgage Finance Program, Series B, 6.10%, 11/15/31 ............................ 2,715,000 2,787,138 Housing Mortgage Finance Program, Sub Series E-4, 5.05%, 5/15/28 ....................... 4,650,000 4,712,728 Special Obligation, Special Needs Housing, Series 1, AMBAC Insured, 5.00%, 6/15/22 ..... 1,000,000 1,051,340 Special Obligation, Special Needs Housing, Series 1, AMBAC Insured, 5.00%, 6/15/32 ..... 1,000,000 1,042,670 Connecticut State Higher Education Supplemental Loan Authority Revenue, Family Education Loan Program, Series A, AMBAC Insured, 6.00%, 11/15/18 ......................................................... 690,000 694,237 MBIA Insured, 5.50%, 11/15/17 .......................................................... 735,000 746,356 Connecticut State Revenue, Revolving Fund, Series A, 5.00%, 7/01/26 ................................................................................ 6,025,000 6,362,038 7/01/27 ................................................................................ 4,060,000 4,283,990 Connecticut State Special Tax Obligation Revenue, Transportation Infrastructure, Series A, FSA Insured, Pre-Refunded, 5.375%, 10/01/18 .................................. 1,000,000 1,061,360 Series B, AMBAC Insured, 5.00%, 12/01/20 ............................................... 5,000,000 5,234,150 Series B, AMBAC Insured, 5.00%, 12/01/22 ............................................... 1,000,000 1,041,340 Greater New Haven Water Pollution Control Authority Regional Water Revenue, Refunding, Series A, MBIA Insured, 5.00%, 11/15/24 ............................................................................... 3,315,000 3,494,607 8/15/35 ................................................................................ 6,750,000 7,066,845 Hartford GO, AMBAC Insured, 5.00%, 7/15/23 ................................................................................ 1,000,000 1,060,780 7/15/25 ................................................................................ 1,000,000 1,056,130
20 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN CONNECTICUT TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) CONNECTICUT (CONTINUED) New Haven GO, Series C, MBIA Insured, 5.00%, 11/01/22 ........................................................................ $ 2,975,000 $ 3,119,258 ETM, 5.00%, 11/01/22 ................................................................... 25,000 27,550 South Central Regional Water Authority Water System Revenue, Eighteenth Series B-1, MBIA Insured, 5.00%, 8/01/26 .................................... 3,500,000 3,660,300 Refunding, Twentieth Series A, MBIA Insured, 5.00%, 8/01/26 ............................ 7,345,000 7,730,319 Series A, MBIA Insured, 5.00%, 8/01/33 ................................................. 6,000,000 6,251,040 University of Connecticut Revenue, Student Fee, Refunding, Series A, FGIC Insured, 5.00%, 11/15/26 ..................................... 10,000,000 10,470,300 Series A, 5.00%, 5/15/23 ............................................................... 10,000,000 10,407,900 Series A, FGIC Insured, Pre-Refunded, 6.00%, 11/15/25 .................................. 1,500,000 1,618,740 --------------- 281,438,565 --------------- U.S. TERRITORIES 18.9% PUERTO RICO 17.2% Children's Trust Fund Puerto Rico Tobacco Settlement Revenue, Asset-Backed Bonds, Refunding, 5.50%, 5/15/39 ............................................................... 4,000,000 4,193,480 Puerto Rico Commonwealth GO, Public Improvement, FSA Insured, Pre-Refunded, 5.125%, 7/01/30 ............................................. 1,165,000 1,223,145 MBIA Insured, Pre-Refunded, 5.75%, 7/01/26 ............................................. 1,000,000 1,055,420 Refunding, FSA Insured, 5.125%, 7/01/30 ................................................ 835,000 867,089 Series A, 5.00%, 7/01/29 ............................................................... 1,000,000 1,030,580 Series A, 5.125%, 7/01/31 .............................................................. 3,195,000 3,272,032 Series A, 5.00%, 7/01/33 ............................................................... 1,000,000 1,025,740 Series A, 5.00%, 7/01/34 ............................................................... 750,000 772,020 Series A, FGIC Insured, Pre-Refunded, 5.00%, 7/01/32 ................................... 1,000,000 1,053,920 Series A, Pre-Refunded, 5.125%, 7/01/31 ................................................ 1,000,000 1,049,910 Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Refunding, Series A, 5.00%, 7/01/38 .................................................... 120,000 121,812 Series A, Pre-Refunded, 5.00%, 7/01/38 ................................................. 2,380,000 2,435,549 Series G, 5.00%, 7/01/33 ............................................................... 400,000 410,512 Series G, Pre-Refunded, 5.00%, 7/01/33 ................................................. 600,000 637,698 Puerto Rico Convention Center District Authority Hotel Occupancy Tax Revenue, Series A, AMBAC Insured, 5.00%, 7/01/31 ........................................................... 5,000,000 5,248,950 Puerto Rico Electric Power Authority Power Revenue, Series HH, FSA Insured, Pre-Refunded, 5.25%, 7/01/29 ................................... 13,000,000 13,676,520 Series II, Pre-Refunded, 5.25%, 7/01/31 ................................................ 1,000,000 1,073,600 Series RR, XLCA Insured, Pre-Refunded, 5.00%, 7/01/30 .................................. 1,000,000 1,076,960 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 3,629,836 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 1,022,510 Puerto Rico PBA Guaranteed Revenue, Government Facilities, Refunding, Series D, 5.375%, 7/01/33 ................................................... 1,995,000 2,085,274 Series D, Pre-Refunded, 5.375%, 7/01/33 ................................................ 6,005,000 6,417,423 Series I, 5.00%, 7/01/36 ............................................................... 1,000,000 1,028,750
Quarterly Statements of Investments | 21 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN CONNECTICUT TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) U.S. TERRITORIES (CONTINUED) PUERTO RICO (CONTINUED) Puerto Rico Public Finance Corp. Revenue, Commonwealth Appropriation, Series E, Pre-Refunded, 5.70%, 8/01/25 ............................................................ $ 5,000,000 $ 5,234,950 University of Puerto Rico Revenues, University System, Refunding, Series Q,5.00%, 6/01/36 ................................................................................. 2,000,000 2,058,340 --------------- 61,702,020 --------------- VIRGIN ISLANDS 1.7% Virgin Islands PFAR, senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/13 ............................................................................... 2,500,000 2,570,100 10/01/22 ............................................................................... 2,500,000 2,563,900 Virgin Islands Water and Power Authority Electric System Revenue, Refunding, 5.30%, 7/01/21 ................................................................................. 1,000,000 1,001,920 --------------- 6,135,920 --------------- TOTAL U.S. TERRITORIES .................................................................... 67,837,940 --------------- TOTAL LONG TERM INVESTMENTS (COST $338,437,997) ........................................... 349,276,505 --------------- SHORT TERM INVESTMENTS 1.3% MUNICIPAL BONDS 1.3% CONNECTICUT 1.3% a Connecticut State Health and Educational Facilities Authority Revenue, Yale University, Series T-1, Daily VRDN and Put, 3.90%, 7/01/29 ......................................... 300,000 300,000 Series V-1, Daily VRDN and Put, 3.90%, 7/01/36 ......................................... 1,600,000 1,600,000 Series V-2, Daily VRDN and Put, 3.90%, 7/01/36 ......................................... 2,900,000 2,900,000 --------------- TOTAL SHORT TERM INVESTMENTS (COST $4,800,000) ............................................ 4,800,000 --------------- TOTAL INVESTMENTS (COST $343,237,997) 98.4% ............................................... 354,076,505 OTHER ASSETS, LESS LIABILITIES 1.6% ....................................................... 5,834,507 --------------- NET ASSETS 100.0% ......................................................................... $ 359,911,012 ===============
See Selected Portfolio Abbreviations on page 176. 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. 22 | See Notes to Statements of Investments. | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN DOUBLE TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 98.4% MUNICIPAL BONDS 98.4% U.S. TERRITORIES 98.4% GUAM 5.2% Guam Education Financing Foundation COP, 5.00%, 10/01/23 .................................. $ 2,500,000 $ 2,582,625 Guam International Airport Authority Revenue, Series A, MBIA Insured, 5.25%, 10/01/20 ................................................ 1,725,000 1,841,317 Series A, MBIA Insured, 5.25%, 10/01/22 ................................................ 700,000 745,598 Series B, MBIA Insured, 5.25%, 10/01/22 ................................................ 1,000,000 1,065,140 Series B, MBIA Insured, 5.25%, 10/01/23 ................................................ 1,000,000 1,064,560 Series C, MBIA Insured, 5.25%, 10/01/21 ................................................ 5,000,000 5,153,100 Series C, MBIA Insured, 5.00%, 10/01/23 ................................................ 5,000,000 5,147,000 Guam Power Authority Revenue, Refunding, Series A, MBIA Insured, 5.125%, 10/01/29 ....................................................................... 1,975,000 2,043,493 5.25%, 10/01/34 ........................................................................ 7,000,000 7,271,460 --------------- 26,914,293 --------------- PUERTO RICO 80.0% Children's Trust Fund Puerto Rico Tobacco Settlement Revenue, Asset-Backed Bonds, Refunding, 5.50%, 5/15/39 ............................................................... 5,000,000 5,241,850 Puerto Rico Commonwealth GO, Public Improvement, MBIA Insured, Pre-Refunded, 5.75%, 7/01/26 ............................................. 3,000,000 3,166,260 Series A, 5.375%, 7/01/28 .............................................................. 1,300,000 1,353,131 Series A, 5.00%, 7/01/29 ............................................................... 4,500,000 4,637,610 Series A, 5.00%, 7/01/34 ............................................................... 5,000,000 5,146,800 Series A, FGIC Insured, 5.125%, 7/01/31 ................................................ 3,315,000 3,447,434 Series A, FGIC Insured, Pre-Refunded, 5.125%, 7/01/31 .................................. 1,685,000 1,769,098 Puerto Rico Commonwealth Highway and Transportation Authority Highway Revenue, Series Y, Pre-Refunded, 5.50%, 7/01/36 ............................................................ 11,850,000 13,200,426 Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Refunding, Series H, 5.00%, 7/01/35 .................................................... 20,000 20,526 Refunding, Series K, 5.00%, 7/01/30 .................................................... 1,000,000 1,036,240 Refunding, Series L, MBIA Insured, 5.25%, 7/01/23 ...................................... 6,000,000 6,700,860 Refunding, Series M, 5.00%, 7/01/25 .................................................... 4,345,000 4,522,841 Refunding, Series N, Assured Guaranty, 5.25%, 7/01/36 .................................. 4,500,000 5,107,770 Series B, Pre-Refunded, 6.00%, 7/01/39 ................................................. 10,000,000 10,715,000 Series D, Pre-Refunded, 5.375%, 7/01/36 ................................................ 11,990,000 12,842,009 Series H, Pre-Refunded, 5.00%, 7/01/35 ................................................. 80,000 85,026 Series J, Pre-Refunded, 5.00%, 7/01/34 ................................................. 1,000,000 1,069,940 Series K, Pre-Refunded, 5.00%, 7/01/35 ................................................. 5,815,000 6,262,522 Series K, Pre-Refunded, 5.00%, 7/01/40 ................................................. 9,500,000 10,231,120 Puerto Rico Commonwealth Infrastructure Financing Authority Special Obligation, Series A, ETM, 5.50%, 10/01/32 .................................................................... 10,000,000 10,629,700 Puerto Rico Commonwealth Infrastructure Financing Authority Special Tax Revenue, 5.00%, 7/01/37 ......................................................................... 12,000,000 12,388,320 Series A, AMBAC Insured, Pre-Refunded, 5.00%, 7/01/21 .................................. 9,000,000 9,157,140 Series B, 5.00%, 7/01/31 ............................................................... 7,500,000 7,748,325 Series B, 5.00%, 7/01/37 ............................................................... 9,000,000 9,270,720 Series B, 5.00%, 7/01/41 ............................................................... 3,100,000 3,182,708 Puerto Rico Convention Center District Authority Hotel Occupancy Tax Revenue, Series A, AMBAC Insured, 5.00%, 7/01/31 .......................................................... 20,000,000 20,995,800 CIFG Insured, 5.00%, 7/01/27 ........................................................... 900,000 947,574
Quarterly Statements of Investments | 23 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN DOUBLE TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) U.S. TERRITORIES (CONTINUED) PUERTO RICO (CONTINUED) Puerto Rico Electric Power Authority Power Revenue, Refunding, Series SS, MBIA Insured, 5.00%, 7/01/23 ..................................... $ 4,900,000 $ 5,169,304 Series HH, FSA Insured, Pre-Refunded, 5.25%, 7/01/29 ................................... 1,605,000 1,688,524 Series II, FSA Insured, Pre-Refunded, 5.125%, 7/01/26 .................................. 1,000,000 1,068,840 Series II, Pre-Refunded, 5.25%, 7/01/31 ................................................ 15,500,000 16,640,800 Series NN, MBIA Insured, Pre-Refunded, 5.00%, 7/01/32 .................................. 4,000,000 4,251,320 Series NN, Pre-Refunded, 5.125%, 7/01/29 ............................................... 5,125,000 5,475,652 Series RR, FGIC Insured, Pre-Refunded, 5.00%, 7/01/35 .................................. 5,670,000 6,106,363 Series RR, XLCA Insured, Pre-Refunded, 5.00%, 7/01/30 .................................. 1,725,000 1,857,756 a Series TT, 5.00%, 7/01/26 .............................................................. 5,000,000 5,221,100 Series TT, 5.00%, 7/01/27 .............................................................. 5,000,000 5,217,000 Series TT, 5.00%, 7/01/32 .............................................................. 11,800,000 12,273,180 Series TT, 5.00%, 7/01/37 .............................................................. 5,000,000 5,196,400 Puerto Rico HFAR, Capital Fund Program, 4.60%, 12/01/24 ................................... 10,000,000 10,106,200 Puerto Rico HFC, HMR, MBS, Series A, GNMA Secured, 5.20%, 12/01/33 ........................ 10,790,000 10,986,486 Puerto Rico HFC Revenue, Sixth Portfolio, Section 8, FHA Insured, Pre-Refunded, 7.75%, 12/01/26 ................................................................................ 2,060,000 2,060,000 Puerto Rico Industrial Medical and Environmental Pollution Control Facilities Financing Authority Revenue, PepsiCo Inc. Project, 6.25%, 11/15/13 ................................ 900,000 945,270 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 2,502,400 Dr. Pila Hospital Project, Refunding, FHA Insured, 6.25%, 8/01/32 ...................... 500,000 500,475 Hospital Auxilio Mutuo Obligation, Series A, MBIA Insured, 6.25%, 7/01/24 .............. 8,445,000 8,456,992 Mennonite General Hospital Project, 5.625%, 7/01/17 .................................... 665,000 633,765 Mennonite General Hospital Project, 5.625%, 7/01/27 .................................... 1,950,000 1,770,229 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 6,637,704 Guaynabo Municipal Government, 5.625%, 7/01/22 ......................................... 3,160,000 3,197,004 Guaynabo Warehouse, Series A, 5.15%, 7/01/19 ........................................... 1,250,000 1,262,113 Guaynabo Warehouse, Series A, 5.20%, 7/01/24 ........................................... 4,120,000 4,162,601 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 2,092,980 Ana G. Mendez University System Project, Refunding, 5.375%, 2/01/29 .................... 7,850,000 8,005,587 Cogeneration Facility, AES Puerto Rico Project, 6.625%, 6/01/26 ........................ 5,970,000 6,441,093 International American University of Puerto Rico Project, MBIA Insured, 4.25%, 10/01/24 ............................................................................. 1,000,000 992,680 International American University of Puerto Rico Project, MBIA Insured, 4.375%, 10/01/25 ............................................................................. 1,000,000 1,006,490 International American University of Puerto Rico Project, MBIA Insured, 4.50%, 10/01/29 ............................................................................. 3,750,000 3,754,425 University Plaza Project, Series A, MBIA Insured, 5.00%, 7/01/33 ....................... 6,000,000 6,135,060 Puerto Rico Municipal Finance Agency GO, Series A, FSA Insured, 5.00%, 8/01/22 ......................................................................... 3,000,000 3,168,360 Pre-Refunded, 5.50%, 8/01/23 ........................................................... 7,400,000 7,743,064
24 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN DOUBLE TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) U.S. TERRITORIES (CONTINUED) PUERTO RICO (CONTINUED) Puerto Rico Municipal Finance Agency Revenue, Series A, FSA Insured, 5.00%, 8/01/27 ................................................................................ $ 5,500,000 $ 5,699,210 8/01/30 ................................................................................ 12,000,000 12,622,680 Puerto Rico PBA Guaranteed Revenue, Government Facilities, Refunding, Series D, 5.375%, 7/01/33 ................................................... 3,430,000 3,585,207 Series D, Pre-Refunded, 5.375%, 7/01/33 ................................................ 9,070,000 9,692,928 Series I, 5.25%, 7/01/33 ............................................................... 4,500,000 4,724,595 Series I, 5.375%, 7/01/34 .............................................................. 5,000,000 5,299,600 Series I, 5.00%, 7/01/36 ............................................................... 4,000,000 4,115,000 Puerto Rico Port Authority Revenue, Series D, FGIC Insured, 6.00%, 7/01/21 ................ 1,250,000 1,251,113 Puerto Rico Public Finance Corp. Revenue, Commonwealth Appropriation, Series A, Pre-Refunded, 5.00%, 6/01/26 ................................................. 2,865,000 2,929,033 Series E, 5.50%, 8/01/29 ............................................................... 2,155,000 2,249,066 Series E, Pre-Refunded, 5.50%, 8/01/29 ................................................. 6,845,000 7,315,799 University of Puerto Rico Revenues, University System, Refunding, Series P, 5.00%, 6/01/30 ............................................................... 4,475,000 4,632,207 Series Q, 5.00%, 6/01/26 ............................................................... 2,500,000 2,591,575 Series Q, 5.00%, 6/01/30 ............................................................... 5,000,000 5,168,200 Series Q, 5.00%, 6/01/36 ............................................................... 7,500,000 7,718,775 --------------- 413,198,955 --------------- VIRGIN ISLANDS 13.2% Virgin Islands HFA, SFR, Refunding, Series A, GNMA Secured, 6.45%, 3/01/16 ......................................................................... 160,000 160,685 6.50%, 3/01/25 ......................................................................... 390,000 391,622 Virgin Islands PFAR, Gross Receipts Taxes Loan Note, FGIC Insured, 5.00%, 10/01/27 .......................... 6,000,000 6,366,780 Gross Receipts Taxes Loan Note, Radian Insured, 5.00%, 10/01/26 ........................ 5,000,000 5,217,550 Gross Receipts Taxes Loan Note, Radian Insured, 5.00%, 10/01/33 ........................ 9,220,000 9,585,942 Gross Receipts Taxes Loan Note, Refunding, ACA Insured, 5.00%, 10/01/31 ................ 2,500,000 2,567,675 senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/18 ..................... 3,000,000 3,078,630 senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/22 ..................... 6,750,000 6,922,530 senior lien, Fund Loan Notes, Refunding, Series A, 5.625%, 10/01/25 .................... 3,950,000 4,056,216 senior lien, Matching Fund Loan Notes, Series A, 5.25%, 10/01/24 ....................... 2,000,000 2,100,200 Virgin Islands Port Authority Marine Revenue, Series A, FSA Insured, 5.25%, 9/01/18 ......................................................................... 3,930,000 4,089,047 5.00%, 9/01/23 ......................................................................... 10,000,000 10,271,900 Virgin Islands Water and Power Authority Electric System Revenue, Refunding, 5.30%, 7/01/18 ................................................................................ 4,175,000 4,176,002 7/01/21 ................................................................................ 1,000,000 1,001,920 Virgin Islands Water and Power Authority Water System Revenue, Refunding, 5.25%, 7/01/12 ......................................................................... 4,000,000 4,123,920 5.50%, 7/01/17 ......................................................................... 4,000,000 4,136,320 --------------- 68,246,939 --------------- TOTAL LONG TERM INVESTMENTS (COST $491,674,022) ........................................... 508,360,187 ---------------
Quarterly Statements of Investments | 25 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN DOUBLE TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM INVESTMENT (COST $2,959,000) 0.6% MUNICIPAL BOND 0.6% U.S. TERRITORIES 0.6% PUERTO RICO 0.6% b Puerto Rico Commonwealth Government Development Bank Revenue, Refunding, MBIA Insured, Weekly VRDN and Put, 3.61%, 12/01/15 .................................................... $ 2,959,000 $ 2,959,000 --------------- TOTAL INVESTMENTS (COST $494,633,022) 99.0% ............................................... 511,319,187 OTHER ASSETS, LESS LIABILITIES 1.0% ....................................................... 5,088,156 --------------- NET ASSETS 100.0% ......................................................................... $ 516,407,343 ===============
See Selected Portfolio Abbreviations on page 176. 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. 26 | See Notes to Statements of Investments. | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 98.1% MUNICIPAL BONDS 98.1% ALABAMA 4.6% Alabama Water Pollution Control Authority Revenue, Revolving Fund Loan, Refunding, Series B, AMBAC Insured, 4.625%, 8/15/13 ......................................................................... $ 5,900,000 $ 6,066,262 4.125%, 2/15/14 ......................................................................... 3,000,000 3,030,960 East Alabama Health Care Authority Health Care Facilities Revenue, Tax Anticipation Bond, Series A, MBIA Insured, 4.50%, 9/01/13 .......................................................................... 1,925,000 1,963,769 4.625%, 9/01/14 ......................................................................... 2,010,000 2,059,908 4.50%, 9/01/15 .......................................................................... 2,100,000 2,137,548 Huntsville Health Care Authority Revenue, Series A, MBIA Insured, 5.00%, 6/01/17 .......................................................................... 2,900,000 3,068,171 Pre-Refunded, 4.80%, 6/01/13 ............................................................ 2,400,000 2,535,840 Jefferson County GO, Capital Improvement wts., Series A, MBIA Insured, 5.00%, 4/01/17 ...... 2,195,000 2,319,435 Jefferson County Limited Obligation School wts. Revenue, Series A, 5.25%, 1/01/16 .......... 2,000,000 2,133,640 Sylacauga GO, wts., AMBAC Insured, Pre-Refunded, 5.50%, 6/01/12 ............................ 600,000 638,226 University of Alabama General Revenue, Series A, MBIA Insured, 5.00%, 7/01/15 .............. 4,070,000 4,331,335 --------------- 30,285,094 --------------- ARIZONA 5.5% Arizona Health Facilities Authority Revenue, Series A, 5.00%, 1/01/22 ...................... 8,000,000 8,308,080 Arizona School Facilities Board Revenue, Series B, FGIC Insured, 4.00%, 9/01/13 ............ 5,000,000 5,021,700 Arizona State University COP, Research Infrastructure Projects, AMBAC Insured, 5.25%, 9/01/16 .................................................................................. 2,505,000 2,722,935 Glendale IDAR, John C Lincoln Health, Refunding, Series B, 5.00%, 12/01/18 ................. 5,605,000 5,761,043 Maricopa County GO, School District No. 97, Deer Valley School Improvement, Series A, FGIC Insured, 4.75%, 7/01/12 ............................................................. 4,000,000 4,155,000 Maricopa County Hospital Revenue, Sun Health Corp., Refunding, 5.00%, 4/01/18 .............. 2,000,000 2,044,020 Maricopa County USD No. 48 Scottsdale GO, Refunding, Series A, FSA Insured, 4.00%, 7/01/15 .................................................................................. 3,000,000 3,016,410 Maricopa County USD No. 80 Chandler GO, Project of 2002, Series A, FSA Insured, 4.00%, 7/01/14 .................................................................................. 1,000,000 1,005,870 Mesa GO, Refunding, Series A, FGIC Insured, 4.20%, 7/01/16 ................................. 715,000 721,485 Tempe Arizona IDA Lease Revenue, State University Foundation, AMBAC Insured, 4.00%, 7/01/14 ................................................................................. 1,110,000 1,116,516 7/01/15 ................................................................................. 1,000,000 1,001,580 7/01/16 ................................................................................. 1,000,000 999,980 --------------- 35,874,619 --------------- ARKANSAS 1.7% Arkansas State Development Finance Authority Revenue, State Agencies Facilities, Corrections, Series B, FSA Insured, 5.00%, 11/01/17 ................................................................................ 1,955,000 2,093,316 11/01/19 ................................................................................ 2,065,000 2,195,942 Conway Hospital Revenue, Conway Regional Medical Improvement, Refunding, Series A, 6.20%, 8/01/17 ........................................................................... 1,105,000 1,164,582 Little Rock GO, Capital Improvements, FSA Insured, 4.00%, 4/01/15 .......................... 2,500,000 2,502,850
Quarterly Statements of Investments | 27 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) ARKANSAS (CONTINUED) 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 $ 1,066,150 Student Fee University of Arkansas at Fort Smith, FSA Insured, 4.75%, 12/01/15 .......... 2,295,000 2,376,518 --------------- 11,399,358 --------------- CALIFORNIA 6.1% California State Department of Water Resources Power Supply Revenue, Series A, Pre-Refunded, 5.125%, 5/01/18 ............................................................ 3,000,000 3,208,170 California State GO, Refunding, 5.00%, 2/01/17 ............................................................... 3,000,000 3,148,740 Various Purpose, 5.25%, 11/01/17 ........................................................ 10,000,000 10,682,300 Golden State Tobacco Securitization Corp. Tobacco Settlement Revenue, Asset-Backed, ETM, 5.00%, 6/01/12 ........................................................................... 1,500,000 1,576,230 Los Angeles Department of Water and Power Waterworks Revenue, Series B, MBIA Insured, 4.25%, 7/01/17 ........................................................................... 6,530,000 6,627,624 Los Angeles USD, GO, Series A, MBIA Insured, 4.125%, 7/01/15 ......................................................................... 2,500,000 2,536,850 4.25%, 7/01/16 .......................................................................... 2,500,000 2,540,075 North Orange County Community College District GO, Election of 2002, Series B, FGIC Insured, Pre-Refunded, 4.00%, 8/01/15 .................................................... 2,000,000 2,022,280 San Joaquin Hills Transportation Corridor Agency Toll Road Revenue, Capital Appreciation, Refunding, Series A, 5.65%, 1/15/17 ...................................................... 3,000,000 3,186,660 Tulare Joint UHSD, GO, Election of 2004, Series A, MBIA Insured, 5.00%, 8/01/16 ............ 2,870,000 3,108,870 Val Verde USD, COP, FGIC Insured, ETM, 5.00%, 1/01/15 ...................................... 1,000,000 1,075,570 --------------- 39,713,369 --------------- COLORADO 4.1% Adams County PCR, Public Service Co. of Colorado Project, Refunding, Series A, MBIA Insured, 4.375%, 9/01/17 ................................................................. 17,000,000 17,275,570 Denver City and County COP, Series B, AMBAC Insured, Pre-Refunded, 5.75%, 12/01/16 ......... 3,000,000 3,213,720 Denver City and County Medical Facilities GO, 4.00%, 8/01/16 ............................... 6,000,000 5,981,520 --------------- 26,470,810 --------------- FLORIDA 8.9% Broward County School Board COP, Series A, FSA Insured, 5.00%, 7/01/16 ..................... 5,915,000 6,260,850 Collier County Capital Improvement Revenue, FGIC Insured, 4.60%, 10/01/13 .................. 1,000,000 1,024,120 Collier County School Board COP, Refunding, FSA Insured, 5.00%, 2/15/16 .................... 5,000,000 5,299,750 Hillsborough County Capacity Assessment Special Assessment Revenue, Series 2006, FGIC Insured, 5.00%, 3/01/19 .................................................................. 5,000,000 5,241,250 Jacksonville Water and Sewer System Revenue, Series B, FSA Insured, 4.10%, 10/01/13 ........ 3,000,000 2,999,820 Marion County Public Improvement Revenue, Refunding, MBIA Insured, 4.20%, 12/01/12 ......................................................................... 1,400,000 1,412,978 4.30%, 12/01/13 ......................................................................... 1,800,000 1,818,414 Marion County School Board COP, FSA Insured, 4.00%, 6/01/15 ................................ 1,115,000 1,110,473 Orange County School Board COP, Series B, FGIC Insured, 5.00%, 8/01/18 ................................................................................. 5,150,000 5,464,201 8/01/19 ................................................................................. 5,985,000 6,331,472
28 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) FLORIDA (CONTINUED) Orlando Waste Water Services Revenue, Refunding, Series A, AMBAC Insured, 4.00%, 10/01/14 ................................................................................. $ 7,000,000 $ 6,973,330 South Miami Health Facilities Authority Hospital Revenue, Baptist Health South Florida Group, 5.00%, 8/15/19 ............................................................ 5,000,000 5,244,000 Tampa Bay Water Utility System Revenue, FGIC Insured, Pre-Refunded, 5.75%, 10/01/15 ............................................. 1,000,000 1,074,930 Series B, FGIC Insured, Pre-Refunded, 4.75%, 10/01/15 ................................... 4,140,000 4,286,846 Series B, FGIC Insured, Pre-Refunded, 4.75%, 10/01/16 ................................... 3,400,000 3,520,598 --------------- 58,063,032 --------------- GEORGIA 1.9% Baldwin County Hospital Authority Revenue, Oconee Regional Medical Center, 5.30%, 12/01/13 ................................................................................. 1,020,000 1,032,281 Main Street Natural Gas Inc. Gas Revenue, Series B, 5.00%, 3/15/18 ......................... 5,000,000 5,281,350 South Georgia Governmental Services Authority Revenue, FGIC Insured, 5.00%, 1/01/16 ........ 2,650,000 2,856,992 Wayne County Development Authority PCR, ITT Rayonier Inc. Project, Refunding, 6.10%, 11/01/07 ................................................................................. 3,105,000 3,110,775 --------------- 12,281,398 --------------- HAWAII 0.4% Hawaii State Department of Budget and Finance Special Purpose Revenue, Kaiser Permanente, Series A, ETM, 5.10%, 3/01/14 ................................................ 2,500,000 2,571,475 --------------- ILLINOIS 0.7% Chicago Park District GO, Parking Revenues, Series A, FGIC Insured, Pre-Refunded, 4.125%, 1/01/14 .......................................................................... 3,125,000 3,162,969 Illinois Health Facilities Authority Revenue, Victory Health Services, Series A, Pre-Refunded, 5.25%, 8/15/09 ............................................................. 1,170,000 1,185,011 --------------- 4,347,980 --------------- 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 1,014,720 5.75%, 10/01/11 ......................................................................... 1,500,000 1,522,845 --------------- 2,537,565 --------------- LOUISIANA 2.4% Louisiana State Citizens Property Insurance Corp. Assessment Revenue, Series B, AMBAC Insured, 5.00%, 6/01/19 ............................................................ 11,000,000 11,610,940 St. John's Baptist Parish EDR, USX Corp. Project, Refunding, 5.35%, 12/01/13 ............... 4,000,000 4,120,280 --------------- 15,731,220 --------------- MARYLAND 2.6% Maryland State EDC Student Housing Revenue, University of Maryland College Park Projects, Refunding, CIFG Insured, 5.00%, 6/01/19 ................................................................................. 1,445,000 1,536,367 6/01/20 ................................................................................. 1,000,000 1,059,380
Quarterly Statements of Investments | 29 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) MARYLAND (CONTINUED) Maryland State Health and Higher Educational Facilities Authority Revenue, Doctors Community Hospital, Refunding, Series A, 5.00%, 7/01/20 ......................... $ 6,000,000 $ 6,196,440 Parking, Johns Hopkins Medical Institutions, Refunding, Series B, AMBAC Insured, 5.00%, 7/01/15 ............................................................... 1,000,000 1,068,790 Peninsula Regional Medical Center, 5.00%, 7/01/18 ....................................... 1,600,000 1,679,664 Peninsula Regional Medical Center, 5.00%, 7/01/19 ....................................... 1,430,000 1,500,113 Peninsula Regional Medical Center, 5.00%, 7/01/20 ....................................... 1,000,000 1,047,500 Western Maryland Health, Refunding, Series A, MBIA Insured, 5.00%, 1/01/19 .............. 3,020,000 3,214,669 --------------- 17,302,923 --------------- MASSACHUSETTS 1.5% 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 3,167,730 Massachusetts State Development Finance Agency Revenue, Loomis Community Project, first mortgage, Refunding, Series A, 5.50%, 7/01/08 ...................................... 1,045,000 1,046,108 Massachusetts State Industrial Finance Agency Resource Recovery Revenue, Ogden Haverhill Project, Refunding, Series A, 5.15%, 12/01/07 ......................................................................... 2,000,000 2,007,640 5.20%, 12/01/08 ......................................................................... 2,000,000 2,030,000 Massachusetts State Industrial Finance Agency Revenue, D'Youville Senior Care, 5.50%, 10/01/12 ................................................................................. 1,745,000 1,786,478 --------------- 10,037,956 --------------- MICHIGAN 8.3% Battle Creek Downtown Development Authority Tax Allocation, MBIA Insured, Pre-Refunded, 5.00%, 5/01/17 ........................................................................... 3,295,000 3,332,991 Chippewa County Hospital Financing Authority Revenue, Chippewa County War Memorial Hospital, Refunding, Series B, 5.30%, 11/01/07 ........................................... 815,000 816,386 Detroit GO, Series B, FSA Insured, 5.00%, 4/01/18 ................................................................................. 2,635,000 2,794,892 4/01/19 ................................................................................. 2,515,000 2,658,103 Ferris State University Revenue, General, AMBAC Insured, Pre-Refunded, 5.00%, 10/01/18 ............................................ 520,000 525,439 Refunding, AMBAC Insured, 5.00%, 10/01/18 ............................................... 2,120,000 2,139,440 Garden City School District GO, Refunding, FSA Insured, 5.00%, 5/01/15 ................................................................................. 1,250,000 1,340,088 5/01/18 ................................................................................. 1,455,000 1,534,559 Jackson Public Schools GO, School Building and Site, Refunding, FSA Insured, 5.00%, 5/01/16 ................................................................................. 1,925,000 2,036,515 5/01/17 ................................................................................. 2,025,000 2,137,307 Michigan Municipal Bond Authority Revenue, School District City of Detroit, FSA Insured, 5.00%, 6/01/17 ........................................................................... 10,000,000 10,593,800 Michigan State Hospital Finance Authority Revenue, Ascension Health Credit, Series A, MBIA Insured, Pre-Refunded, 6.00%, 11/15/13 .............................................. 1,200,000 1,272,852 Otsego Public Schools District GO, School Building and Site, FSA Insured, Pre-Refunded, 5.00%, 5/01/16 ........................................................................... 1,630,000 1,733,521 Roseville School District GO, School Building and Site, Refunding, FSA Insured, 5.00%, 5/01/19 .................................................................................. 2,275,000 2,414,184
30 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN FEDERAL INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) MICHIGAN (CONTINUED) Saginaw-Midland Municipal Water Supply Corp. Revenue GO, Water Supply System, Refunding, MBIA Insured, 4.25%, 9/01/13 .................................................. $ 1,245,000 $ 1,267,796 South Lyon Community Schools GO, Refunding, FGIC Insured, 5.00%, 5/01/16 ............................................................ 3,040,000 3,275,205 FSA Insured, 5.00%, 5/01/17 ............................................................. 4,385,000 4,676,471 Wayne-Westland Community Schools GO, Refunding, 4.50%, 5/01/12 .......................................................................... 1,035,000 1,061,051 4.625%, 5/01/13 ......................................................................... 1,095,000 1,133,555 FSA Insured, 5.00%, 5/01/16 ............................................................. 2,825,000 3,011,874 Western Townships Utilities Authority GO, Refunding, MBIA Insured, 4.75%, 1/01/17 .......... 4,290,000 4,371,982 --------------- 54,128,011 --------------- MINNESOTA 3.8% Chaska ISD No. 112 GO, Refunding, Series A, 5.00%, 2/01/16 .......................................................................... 4,000,000 4,107,760 FSA Insured, 4.00%, 2/01/14 ............................................................. 2,060,000 2,071,227 Minneapolis GO, Various Purpose, 5.00%, 12/01/17 ........................................... 3,000,000 3,133,410 Minneapolis Special School District No. 001 COP, Refunding, Series B, FGIC Insured, 4.625%, 2/01/17 .......................................................................... 1,000,000 1,023,060 Mounds View ISD No. 621 GO, MBIA Insured, 5.00%, 2/01/14 ................................................................................. 2,340,000 2,455,619 2/01/15 ................................................................................. 2,425,000 2,541,643 2/01/16 ................................................................................. 2,460,000 2,575,128 Ramsey County GO, Capital Improvement Plan, Series A, 4.75%, 2/01/15 ....................... 2,215,000 2,291,484 Robbinsdale ISD No. 281 GO, Refunding, FSA Insured, 4.00%, 2/01/13 .......................................................................... 2,070,000 2,083,041 4.125%, 2/01/14 ......................................................................... 2,175,000 2,199,251 --------------- 24,481,623 --------------- MISSOURI 4.2% Hannibal IDA Health Facilities Revenue, Refunding, 5.00%, 3/01/19 .......................... 1,675,000 1,722,654 Jackson County Reorganized School District No. 7 Lees Summit GO, School Building, MBIA Insured, 5.00%, 3/01/16 ............................................................. 2,000,000 2,121,860 Lake of the Ozarks Community Bridge Corp. Bridge System Revenue, Pre-Refunded, 5.00%, 12/01/08 ........................................................... 1,000,000 1,006,280 Refunding, 5.00%, 12/01/08 .............................................................. 1,060,000 1,069,063 Missouri Joint Municipal Electric Utility Commission Power Project Revenue, Plum Point Project, MBIA Insured, 5.00%, 1/01/17 ................................................................................. 1,500,000 1,604,535 1/01/19 ................................................................................. 1,000,000 1,062,240 Southeast Missouri State University System Facilities Revenue, Refunding and Improvement, MBIA Insured, 4.375%, 4/01/12 ......................................................................... 335,000 341,777 4.50%, 4/01/14 .......................................................................... 545,000 557,453 4.60%, 4/01/15 .......................................................................... 1,360,000 1,393,919 4.70%, 4/01/16 .......................................................................... 1,165,000 1,196,490 Springfield Public Utility Revenue, FGIC Insured, 4.50%, 8/01/21 ........................... 15,245,000 15,415,439 --------------- 27,491,710 ---------------
Quarterly Statements of Investments | 31 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) NEVADA 0.8% Clark County School District GO, Refunding, Series A, MBIA Insured, 4.50%, 6/15/19 ......... $ 5,000,000 $ 5,154,750 --------------- NEW JERSEY 4.6% 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 2,775,045 Hudson County Improvement Authority Solid Waste Systems Revenue, Refunding, Series 1, 5.90%, 1/01/15 ........................................................................... 805,000 807,423 New Jersey State COP, Equipment Lease Purchase, Series A, AMBAC Insured, 5.00%, 6/15/17 .................................................................................. 5,000,000 5,259,850 New Jersey State Transportation Trust Fund Authority Revenue, Transportation System, Refunding, Series C, FSA Insured, 4.50%, 12/15/10 ....................................... 10,000,000 10,215,700 Series D, FSA Insured, 5.00%, 6/15/19 ................................................... 5,630,000 5,945,956 Series D, FSA Insured, Pre-Refunded, 5.00%, 6/15/19 ..................................... 4,370,000 4,682,979 --------------- 29,686,953 --------------- NEW YORK 12.7% Liverpool Central School District GO, Refunding, FSA Insured, 5.00%, 7/15/14 ............... 1,560,000 1,640,231 Long Island Power Authority Electric System Revenue, General, Refunding, Series A, FGIC Insured, 5.00%, 12/01/19 ...................................... 7,000,000 7,442,610 Series E, FGIC Insured, 5.00%, 12/01/18 ................................................. 8,500,000 9,089,390 Middletown City School District GO, Refunding, Series A, FSA Insured, 4.00%, 11/01/15 ...... 2,050,000 2,056,868 MTA Commuter Facilities Revenue, Services Contract, Series R, ETM, 5.50%, 7/01/11 .......... 2,215,000 2,279,899 MTA Revenue, Transportation, Series C, 5.00%, 11/15/16 ............................................................... 1,150,000 1,231,282 Series F, 5.00%, 11/15/15 ............................................................... 1,250,000 1,334,188 MTA Transit Facilities Revenue, Series A, Pre-Refunded, 6.00%, 7/01/15 ..................... 1,500,000 1,569,075 New York City GO, Refunding, Series C, MBIA Insured, 5.875%, 8/01/16 ...................................... 5,000 5,341 Refunding, Series H, 5.00%, 8/01/17 ..................................................... 4,330,000 4,555,593 Series C, MBIA Insured, Pre-Refunded, 5.875%, 8/01/16 ................................... 1,245,000 1,334,042 Series F, 4.75%, 1/15/16 ................................................................ 3,000,000 3,096,750 Series H, 5.90%, 8/01/09 ................................................................ 495,000 501,579 Series H, 5.00%, 8/01/16 ................................................................ 3,000,000 3,165,810 Series H, Pre-Refunded, 5.90%, 8/01/09 .................................................. 5,000 5,067 Series I, 5.00%, 8/01/18 ................................................................ 10,000,000 10,489,500 Series J, 6.00%, 8/01/08 ................................................................ 985,000 998,258 Series J, Pre-Refunded, 6.00%, 8/01/08 .................................................. 2,015,000 2,042,323 Series O, 5.00%, 6/01/19 ................................................................ 5,000,000 5,255,200 New York City Transitional Finance Authority Revenue, Series C, 4.50%, 2/15/13 ............. 4,500,000 4,620,420 New York State Dormitory Authority Revenue, Mortgage, St. Barnabas, Series B, FHA Insured, 4.25%, 8/01/14 ........................................................................... 2,355,000 2,385,356 New York State Dormitory Authority Revenues, Mental Health Services Facilities Improvement, Series D, MBIA Insured, 5.00%, 8/15/17 ................................................... 2,000,000 2,046,780 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 7,033,740
32 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) NEW YORK (CONTINUED) Yonkers GO, Refunding, Series A, MBIA Insured, 5.00%, 8/01/17 ....................................... $ 6,435,000 $ 6,855,656 Series B, FSA Insured, 4.00%, 10/15/16 .................................................. 1,890,000 1,889,924 --------------- 82,924,882 --------------- NORTH CAROLINA 3.4% Asheville Water System Revenue, FSA Insured, Pre-Refunded, 5.25%, 8/01/15 ................................................................................. 915,000 964,794 8/01/17 ................................................................................. 1,020,000 1,075,508 8/01/19 ................................................................................. 1,030,000 1,086,053 Charlotte Water and Sewer System Revenue, 5.00%, 6/01/16 ................................... 4,000,000 4,196,880 North Carolina Eastern Municipal Power Agency Power System Revenue, Refunding, Series D, 6.00%, 1/01/09 ..................................................... 400,000 404,696 Series D, 6.45%, 1/01/14 ................................................................ 1,000,000 1,067,560 North Carolina Municipal Power Agency No. 1 Catawba Electric Revenue, Refunding, Series B, 6.50%, 1/01/09 ........................................................................... 5,000,000 5,186,900 Rutherford County COP, Refunding, AMBAC Insured, 5.00%, 9/01/17 ............................ 1,275,000 1,339,681 Wake County GO, Public Improvement, 4.50%, 3/01/14 ......................................... 6,400,000 6,597,888 --------------- 21,919,960 --------------- OHIO 5.0% Akron GO, Various Purpose, Refunding and Improvement, MBIA Insured, 4.125%, 12/01/14 ................................................................................. 1,000,000 1,011,020 Allen County GO, Refunding, AMBAC Insured, 4.75%, 12/01/17 ................................. 2,180,000 2,259,853 Cleveland Municipal School District GO, FSA Insured, 5.00%, 12/01/14 ................................................................................ 1,915,000 2,042,769 12/01/15 ................................................................................ 1,510,000 1,607,893 12/01/16 ................................................................................ 1,400,000 1,488,130 Franklin County Health Care Facilities Revenue,Presbyterian Retirement Services, Refunding, 5.25%, 7/01/08 .......................................................................... 575,000 578,548 5.40%, 7/01/10 .......................................................................... 775,000 787,787 5.50%, 7/01/11 .......................................................................... 500,000 508,665 Kenston Local School District GO, School Improvement, MBIA Insured, 4.00%, 12/01/15 ........ 1,000,000 1,003,700 Lake Local School District Wood County GO, MBIA Insured, 5.20%, 12/01/17 ......................................................................... 375,000 397,253 Pre-Refunded, 5.20%, 12/01/17 ........................................................... 2,190,000 2,332,065 Lakewood City School District GO, School Improvement, Refunding, FSA Insured, 4.50%, 12/01/22 ................................................................................. 2,900,000 2,916,878 Mahoning County Sewer System Revenue, AMBAC Insured, 5.20%, 12/01/14 ....................... 1,360,000 1,429,034 Mason City School District GO, School Improvement, Refunding, FGIC Insured, 5.00%, 12/01/15 ................................................................................. 2,670,000 2,874,522 Nordonia Hills City School District GO, School Improvement, Refunding, FGIC Insured, 4.50%, 12/01/21 ................................................................................. 2,360,000 2,387,282 Ohio State Building Authority Revenue, State Facilities, Administration Building Fund Project, Refunding, Series B, FSA Insured, 4.00%, 10/01/12 .......................... 1,000,000 1,007,110 University of Akron General Receipts Revenue, FGIC Insured, Pre-Refunded, 5.75%, 1/01/14 .................................................................................. 2,000,000 2,112,800
Quarterly Statements of Investments | 33 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) OHIO (CONTINUED) University of Cincinnati General Receipts Revenue, Series A, AMBAC Insured, 5.00%, 6/01/17 .................................................................................. $ 3,000,000 $ 3,201,300 Westerville City School District GO, Refunding, MBIA Insured, 5.00%, 12/01/18 .............. 1,000,000 1,059,510 Youngstown GO, AMBAC Insured, 6.125%, 12/01/15 ............................................. 1,275,000 1,418,297 --------------- 32,424,416 --------------- OKLAHOMA 0.2% Okmulgee County Governmental Building Authority Sales Tax Revenue, first mortgage, MBIA Insured, Pre-Refunded, 5.60%, 3/01/10 .......................................................................... 620,000 637,124 6.00%, 3/01/15 .......................................................................... 700,000 725,417 --------------- 1,362,541 --------------- OREGON 3.2% Emerald Peoples Utility District Revenue, Refunding, Series A, FSA Insured, 4.00%, 11/01/15 ................................................................................. 2,475,000 2,483,266 Oregon State Department of Administrative Services COP, Series A, FGIC Insured, 5.00%, 11/01/19 ................................................................................. 2,340,000 2,489,737 Portland GO, Arena, Refunding, Series B, 5.00%, 6/01/16 .................................... 3,075,000 3,287,821 Portland Sewer System Revenue, second lien, Series B, MBIA Insured, 5.00%, 6/15/18 ................................................................................. 3,135,000 3,353,384 6/15/19 ................................................................................. 3,290,000 3,506,383 Salem Water and Sewer Revenue, MBIA Insured, 4.10%, 6/01/16 ............................................................ 1,035,000 1,044,305 Refunding, FSA Insured, 4.375%, 6/01/11 ................................................. 2,160,000 2,203,956 Refunding, FSA Insured, 4.50%, 6/01/12 .................................................. 2,250,000 2,315,790 --------------- 20,684,642 --------------- PENNSYLVANIA 1.8% Allegheny County IDAR, Pollution Control, Refunding, Series A, AMBAC Insured, 4.35%, 12/01/13 ................................................................................. 5,000,000 5,139,450 Clarion County Hospital Authority Revenue, Clarion Hospital Project, Refunding, 5.40%, 7/01/07 .................................................................................. 555,000 555,361 Pittsburgh Water and Sewer Authority Revenue, Refunding, FSA Insured, 4.00%, 9/01/14 ................................................................................. 4,000,000 4,012,960 9/01/15 ................................................................................. 2,000,000 2,003,180 --------------- 11,710,951 --------------- SOUTH CAROLINA 1.3% Charleston County Resource Recovery Revenue, Foster Wheeler Charleston, Refunding, AMBAC Insured, 5.25%, 1/01/10 ............................................................ 1,000,000 1,029,250 Rock Hill Utility System Revenue, Refunding and Improvement, Series A, FSA Insured, 4.00%, 1/01/14 ........................................................................... 2,000,000 2,009,880 Scago Educational Facilities Corp. for Pickens School District Revenue, Pickens County Project, FSA Insured, 5.00%, 12/01/18 .................................................... 5,000,000 5,310,350 --------------- 8,349,480 ---------------
34 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) TENNESSEE 1.4% Tennessee Energy Acquisition Corp. Gas Revenue, Series C, 5.00%, 2/01/18 ................... $ 5,000,000 $ 5,287,650 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 3,599,435 --------------- 8,887,085 --------------- TEXAS 3.9% Dallas Waterworks and Sewer System Revenue, Refunding, AMBAC Insured, 4.50%, 10/01/19 ................................................................................. 10,000,000 10,148,100 Edgewood ISD Bexar County GO, Series A, 5.00%, 2/15/16 ................................................................................. 1,225,000 1,295,511 2/15/17 ................................................................................. 1,285,000 1,355,110 Houston Hotel Occupancy Tax and Special Revenue, Convention and Entertainment, Series B, AMBAC Insured, 5.00%, 9/01/11 ............................................................ 6,000,000 6,262,380 Laredo ISD Public Facility Corp. Lease Revenue, Series A, AMBAC Insured, 5.00%, 8/01/15 ................................................. 1,000,000 1,037,110 Series C, AMBAC Insured, 5.00%, 8/01/19 ................................................. 1,000,000 1,037,880 Port Corpus Christi Nueces County General Revenue, Union Pacific, Refunding, 5.35%, 11/01/10 ................................................................................. 2,500,000 2,518,025 Travis County Health Facilities Development Corp. Revenue, Ascension Health Credit, Series A, MBIA Insured, Pre-Refunded, 6.25%, 11/15/17 .................................... 1,500,000 1,597,935 --------------- 25,252,051 --------------- UTAH 0.5% Salt Lake County College Revenue, Refunding, 5.00%, 10/01/19 .............................................................. 2,585,000 2,641,302 Westminster College Project, Pre-Refunded, 5.50%, 10/01/12 .............................. 340,000 345,280 --------------- 2,986,582 --------------- WASHINGTON 1.1% King County School District No. 406 South Central GO, Refunding, FSA Insured, 5.00%, 12/01/16 ................................................................................. 3,000,000 3,190,470 Washington State GO, Series A, FSA Insured, 5.00%, 7/01/16 ................................. 4,000,000 4,273,520 --------------- 7,463,990 --------------- WEST VIRGINIA 0.1% West Virginia Public Energy Authority Energy Revenue, Morgantown Assn. Project, Series A, 5.05%, 7/01/08 ........................................................................... 365,000 366,518 ---------------- U.S. TERRITORIES 1.0% VIRGIN ISLANDS 1.0% Virgin Islands PFAR, senior lien, Refunding, Series A, 5.30%, 10/01/11 ..................... 4,000,000 4,105,080 Virgin Islands Water and Power Authority Water System Revenue, Refunding, 5.00%, 7/01/09 .................................................................................. 2,400,000 2,447,688 --------------- TOTAL U.S. TERRITORIES ..................................................................... 6,552,768 --------------- TOTAL LONG TERM INVESTMENTS (COST $630,655,805) ............................................ 638,445,712 ---------------
Quarterly Statements of Investments | 35 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL INTERMEDIATE-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM INVESTMENTS 0.5% MUNICIPAL BONDS 0.5% GEORGIA 0.1% a Hapeville IDAR, Hapeville Hotel Ltd., Daily VRDN and Put, 3.88%, 11/01/15 .................. $ 700,000 $ 700,000 --------------- LOUISIANA 0.0% b a Louisiana Public Facilities Authority Revenue, Kenner Hotel Ltd., Daily VRDN and Put, 3.88%, 12/01/15 ................................................................................. 200,000 200,000 --------------- MASSACHUSETTS 0.1% a Massachusetts State Health and Educational Facilities Authority Revenue, Capital Assets Program, Series D, MBIA Insured, Daily VRDN and Put, 3.88%, 1/01/35 ...................... 800,000 800,000 --------------- NORTH CAROLINA 0.1% a North Carolina State GO, Refunding, Series B, Weekly VRDN and Put, 3.70%, 6/01/19 ................................ 100,000 100,000 Series G, Weekly VRDN and Put, 3.70%, 5/01/21 ........................................... 225,000 225,000 --------------- 325,000 --------------- TENNESSEE 0.1% a Clarksville PBA Revenue, Pooled Financing, Tennessee Municipal Bond Fund, Daily VRDN and Put, 3.90%, 7/01/34 ...................................................................... 200,000 200,000 a Montgomery County PBA Pooled Financing Revenue, Tennessee County Loan Pool, Daily VRDN and Put, 3.90%, 4/01/32 .................................................................. 600,000 600,000 --------------- 800,000 --------------- WASHINGTON 0.1% a Washington State Housing Finance Commission Nonprofit Housing Revenue, Franke Tobey Jones Project, Daily VRDN and Put, 3.81%, 9/01/33 ........................................ 400,000 400,000 --------------- TOTAL SHORT TERM INVESTMENTS (COST $3,225,000) ............................................. 3,225,000 --------------- TOTAL INVESTMENTS (COST $633,880,805) 98.6% ................................................ 641,670,712 OTHER ASSETS, LESS LIABILITIES 1.4% ........................................................ 9,269,072 --------------- NET ASSETS 100.0% .......................................................................... $ 650,939,784 ===============
See Selected Portfolio Abbreviations on page 176. 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 0.1% of net assets. 36 | See Notes to Statements of Investments. | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL LIMITED-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 73.8% MUNICIPAL BONDS 73.8% ALABAMA 1.3% Etowah County Board of Education Special Tax School Warrants, Refunding, FSA Insured, 2.60%, 9/01/08 .......................................................................... $ 250,000 $ 245,010 --------------- COLORADO 1.9% Strasburg School District No. 31J GO, MBIA Insured, zero cpn., 12/01/07 ............................................................................... 220,000 216,049 12/01/08 ............................................................................... 170,000 160,733 --------------- 376,782 --------------- KANSAS 2.7% Junction City COP, Radian Insured, 4.00%, 9/01/09 ................................................................................ 215,000 214,716 9/01/10 ................................................................................ 310,000 308,869 --------------- 523,585 --------------- LOUISIANA 5.3% Louisiana State Citizens Property Insurance Corp. Assessment Revenue, Series B, AMBAC Insured, 5.00%, 6/01/09 ........................................................... 1,000,000 1,023,550 --------------- MISSOURI 1.3% Platte County COP, Public Improvements, 2.40%, 10/01/08 ................................... 200,000 194,850 Springfield COP, Enterprise System Project, 3.85%, 2/01/08 ................................ 50,000 50,034 --------------- 244,884 --------------- NEVADA 2.4% Henderson Local ID Special Assessment, No. T-6, Limited Obligation, Refunding, Senior Series A, FSA Insured, 2.85%, 11/01/09 ........................................... 275,000 266,670 Washoe County Improvement Bonds, Refunding, FSA Insured, 2.50%, 11/01/08 .................. 200,000 195,042 --------------- 461,712 --------------- NEW YORK 14.4% New York State Dormitory Authority Revenues, Non State Supported Debt, Aids Long Term Health Care Facility, Refunding, 5.00%, 11/01/11 ............................................................................. 750,000 775,080 The New York and Presbyterian Hospital, Mortgage, Refunding, Series A, FHA Insured, 5.00%, 8/15/09 ....................................................................... 750,000 768,577 New York State Urban Development Corp. Revenue, State Personal Income Tax, Series C-1 Empire State, 2.80%, 12/15/09 ................................................ 245,000 237,089 Tobacco Settlement Financing Corp. Revenue, Series B-1, 4.00%, 6/01/07 .................... 1,000,000 1,000,000 --------------- 2,780,746 --------------- OHIO 4.4% Franklin County Hospital Revenue, Hospital Corp., Refunding, Series C, MBIA Insured, 2.50%, 5/15/08 .......................................................................... 500,000 491,695 Stark County GO, Sewage System, Refunding, AMBAC Insured, 2.50%, 12/01/08 ................. 370,000 360,350 --------------- 852,045 --------------- OREGON 0.5% Lake County School District No. 014 GO, Refunding, FSA Insured, 2.50%, 1/15/08 ............ 105,000 103,841 ---------------
Quarterly Statements of Investments | 37 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL LIMITED-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) PENNSYLVANIA 1.3% Pittsburgh Water and Sewer Authority Revenue, Refunding, FSA Insured, 2.65%, 9/01/08. ..... $ 250,000 $ 245,085 --------------- RHODE ISLAND 0.5% Rhode Island Housing and Mortgage Finance Corp. Revenue, Homeownership Opportunity, Series 44-A, 2.40%, 10/01/07 ............................................................ 100,000 99,322 --------------- SOUTH DAKOTA 1.8% South Dakota HDA Revenue, Series D, 2.90%, 5/01/09 ........................................ 365,000 355,448 --------------- TEXAS 2.5% Denton ISD, GO, Unlimited Tax School Building Bonds, Premium Capital Appreciation Bonds, Series 2007, PSF Insured, zero cpn., 8/15/08 ............................................ 500,000 477,850 --------------- UTAH 0.9% Davis County Sales Tax Revenue, Series B, AMBAC Insured, 2.55%, 10/01/08 .................. 180,000 175,993 --------------- VIRGINIA 2.4% Virginia State Public School Authority Revenue, School Financing 1997, Refunding, Series C, 5.00%, 8/01/08 ....................................................................... 455,000 461,452 --------------- WASHINGTON 13.9% Washington State GO, Motor Vehicle Tax, Series F, AMBAC Insured, zero cpn., 12/01/09 ...... 1,000,000 901,180 Washington State Health Care Facilities Authority Revenue, Kadlec Medical Center, Series A, Assured Guaranty, 5.00%, 12/01/10 .................................................... 1,000,000 1,030,940 Washington State Higher Education Facilities Authority Revenue, University of Puget Sound Project, Mandatory Put 4/01/08, Refunding, 5.00%, 10/01/30 ........................ 750,000 757,545 --------------- 2,689,665 --------------- WEST VIRGINIA 1.1% West Virginia State Hospital Finance Authority Hospital Revenue, West Virginia University Hospital, Refunding, FSA Insured, 2.50%, 6/01/07 ............................. 205,000 205,000 --------------- WYOMING 2.7% Sweetwater County Improvement Project Powers Board Lease Revenue, MBIA Insured, 5.00%, 12/15/10 ................................................................................ 500,000 518,125 --------------- U.S. TERRITORIES 12.5% GUAM 1.2% Guam International Airport Authority Revenue, Series A, MBIA Insured, 2.375%, 10/01/08..... 240,000 233,609 --------------- PUERTO RICO 11.3% Puerto Rico Commonwealth GO, Public Improvement, Mandatory Put 7/01/08, Refunding, Series C, MBIA Insured, 5.00%, 7/01/28 .................................................. 660,000 669,266 Puerto Rico Commonwealth Government Development Bank Revenue, senior notes, Series B, 5.00%, 12/01/08 ......................................................................... 950,000 964,003 Puerto Rico Industrial Tourist Educational Medical and Environmental Control Facilities Financing Authority Revenue, Ana G. Mendez University System Project, 5.00%, 3/01/11 .......................................................................... 545,000 558,391 --------------- 2,191,660 --------------- TOTAL U.S. TERRITORIES .................................................................... 2,425,269 --------------- TOTAL LONG TERM INVESTMENTS (COST $14,347,130) ............................................ 14,265,364 ---------------
38 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FEDERAL LIMITED-TERM TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM INVESTMENTS 24.6% MUNICIPAL BONDS 24.6% FLORIDA 3.1% Gulf County GO, Cape San Blas Beach, Assured Guaranty, 4.00%, 8/01/07 ..................... $ 500,000 $ 500,155 a Jacksonville Health Facilities Authority Hospital Revenue, Series C, Daily VRDN and Put, 3.87%, 8/15/33 .......................................................................... 100,000 100,000 --------------- 600,155 --------------- KENTUCKY 1.0% a Breckinridge County Lease Program Revenue, Kentucky Assn. Counties Leasing Trust, Series A, Weekly VRDN and Put, 3.88%, 2/01/32 .................................................. 100,000 100,000 a Shelby County Lease Revenue, Series A, Daily VRDN and Put, 3.88%, 9/01/34 ................. 100,000 100,000 --------------- 200,000 --------------- LOUISIANA 1.6% a Louisiana State Offshore Terminal Authority Deepwater Port Revenue, Loop Inc. Project, First Stage, ACES, Refunding, Daily VRDN and Put, 3.90%, 9/01/17 ........................ 300,000 300,000 --------------- MASSACHUSETTS 2.6% a Massachusetts State Health and Educational Facilities Authority Revenue, Capital Assets Program, Series E, Daily VRDN and Put, 3.86%, 1/01/35 ................................... 500,000 500,000 --------------- MISSISSIPPI 1.0% a Jackson County PCR, Chevron USA Inc. Project, Daily VRDN and Put, 3.90%, 12/01/16 ......... 200,000 200,000 --------------- NEVADA 2.1% a Las Vegas Valley Water District GO, Water Improvement, Series C, Daily VRDN and Put, 3.90%, 6/01/36 .......................................................................... 400,000 400,000 --------------- PENNSYLVANIA 4.7% a Delaware Valley Regional Finance Authority Local Government Revenue, Mandatory Put 7/01/07, Series A, AMBAC Insured, Semi-Annual VRDN and Put, 0.892%, 7/01/27 ............. 900,000 897,111 --------------- TENNESSEE 0.5% a Montgomery County PBA Pooled Financing Revenue, Tennessee County Loan Pool, Daily VRDN and Put, 3.90%, 4/01/32 ................................................................. 100,000 100,000 --------------- NEW YORK 7.5% New York State Dormitory Authority Revenues, State Supported Debt, Lease, State University Dormitory Facilities, Series A, 4.50%, 7/01/07 .......................................... 700,000 700,266 Syracuse GO, BAN, Series A, 4.50%, 6/20/07 ................................................ 750,000 750,203 --------------- 1,450,469 --------------- WASHINGTON 0.5% Washington State Higher Education Facilities Authority Revenue, University of Puget Sound Project, Refunding, 3.80%, 10/01/07 ..................................................... 100,000 99,983 --------------- TOTAL SHORT TERM INVESTMENTS (COST $4,745,456) ............................................ 4,747,718 --------------- TOTAL INVESTMENTS (COST $19,092,586) 98.4% ................................................ 19,013,082 OTHER ASSETS, LESS LIABILITIES 1.6% ....................................................... 311,397 --------------- NET ASSETS 100.0% ......................................................................... $ 19,324,479 ===============
See Selected Portfolio Abbreviations on page 176. a Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. Quarterly Statements of Investments | See Notes to Statements of Investments. | 39 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FLORIDA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 98.9% MUNICIPAL BONDS 98.9% FLORIDA 98.9% Alachua County Public Improvement Revenue, AMBAC Insured, Pre-Refunded, 5.25%, 8/01/29 .................................................................................. $ 2,500,000 $ 2,599,900 Alachua County School Board COP, AMBAC Insured, 5.00%, 7/01/20 ............................. 1,000,000 1,042,670 Broward County HFAR, FSA Insured, 5.65%, 11/01/22 ......................................................................... 405,000 409,167 5.70%, 11/01/29 ......................................................................... 225,000 227,466 Broward County School Board COP, MBIA Insured, 5.00%, 7/01/28 ............................................................ 2,000,000 2,069,740 Series A, FSA Insured, 5.00%, 7/01/22 ................................................... 2,000,000 2,065,900 Series A, FSA Insured, 5.00%, 7/01/26 ................................................... 2,850,000 2,937,352 Series A, FSA Insured, 5.00%, 7/01/30 ................................................... 2,000,000 2,079,340 Cape Coral Water and Sewer Revenue, AMBAC Insured, 5.00%, 10/01/36 ......................... 2,000,000 2,086,160 Coral Gables Health Facilities Authority Hospital Revenue, Baptist Health South Florida, FSA Insured, Pre-Refunded, 5.00%, 8/15/29 ................................................ 1,500,000 1,598,685 Dade County HFA, MFMR, Siesta Pointe Apartments, Series A, FSA Insured, 5.75%, 9/01/29 .................................................................................. 1,890,000 1,910,960 Dade County Water and Sewer System Revenue, FGIC Insured, 5.25%, 10/01/21 .................. 1,000,000 1,014,280 Daytona Beach Utility System Revenue, Refunding, Series B, FGIC Insured, 5.00%, 11/15/32 ................................................................................. 1,000,000 1,037,300 Destin Capital Improvement Revenue, MBIA Insured, 5.00%, 8/01/27 ........................... 1,315,000 1,367,127 Escambia County HFA, SFMR, Multi County Program, Series A, MBIA Insured, 6.40%, 10/01/30 ................................................................................. 45,000 45,299 Escambia County Utilities Authority Utility System Revenue, FGIC Insured, 5.00%, 1/01/31 ............................................................ 1,775,000 1,811,565 Refunding, Series B, FGIC Insured, 5.00%, 1/01/22 ....................................... 2,000,000 2,068,400 Florida HFAR, Spinnaker Cove Apartments, Series G, AMBAC Insured, 6.50%, 7/01/36 ........... 1,600,000 1,620,720 Florida HFC Revenue, Housing Logans Pointe Apartments, Series F-1, FSA Insured, 5.90%, 12/01/19 .............. 1,205,000 1,254,104 Marina Bay Apartments, Series S, FSA Insured, 5.85%, 2/01/41 ............................ 1,070,000 1,106,455 Florida Intergovernmental Finance Commission Capital Revenue, Series A, AMBAC Insured, 5.00%, 8/01/32 ........................................................................... 3,570,000 3,679,278 Florida State Board of Education GO, Series F, MBIA Insured, 5.00%, 6/01/28 ................ 2,000,000 2,082,860 Florida State Board Regent Housing Revenue, University of Florida, FGIC Insured, 5.25%, 7/01/30 .................................................................................. 2,000,000 2,099,320 Florida State Correctional Privatization Commission COP, Series B, AMBAC Insured, 5.00%, 8/01/25 .................................................................................. 2,000,000 2,080,340 Florida State Department of Environmental Protection Preservation Revenue, Florida Forever, Series A, MBIA Insured, 5.00%, 7/01/21 ................................................... 3,000,000 3,124,110 Florida State Department of General Services Division Facilities Management Revenue, Florida Facilities Pool, Series B, FSA Insured, Pre-Refunded, 5.50%, 9/01/28 ............. 550,000 575,515 Gulf Breeze Revenue, FGIC Insured, 5.80%, 12/01/20 ........................................................... 1,250,000 1,330,113 Local Government Loan Program, Series C, FGIC Insured, 6.05%, 12/01/15 .................. 1,915,000 1,946,463 Hernando County School Board COP, MBIA Insured, 5.00%, 7/01/30 ............................. 1,150,000 1,193,804 Hillsborough County School Board COP, MBIA Insured, 5.00%, 7/01/26 .......................................................................... 1,670,000 1,735,113 Pre-Refunded, 5.375%, 7/01/26 ........................................................... 1,000,000 1,032,080
40 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FLORIDA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) FLORIDA (CONTINUED) Indian Trail Water Control District Improvement Revenue, MBIA Insured, 5.75%, 8/01/16 ...... $ 1,090,000 $ 1,102,568 Jacksonville Capital Improvement Revenue, Refunding, Series C, AMBAC Insured, 5.00%, 10/01/25 ................................................................................. 4,000,000 4,150,960 Jacksonville Guaranteed Entitlement Revenue, Refunding and Improvement, FGIC Insured, 5.00%, 10/01/32 .......................................................................... 1,000,000 1,031,480 Jacksonville Sales Tax Revenue, Better Jacksonville, MBIA Insured, 5.00%, 10/01/30 ......... 1,500,000 1,552,455 Jacksonville Transportation Revenue, MBIA Insured, 5.00%, 10/01/26 ......................... 2,000,000 2,060,940 Jacksonville Water and Sewer Revenue, United Water Project, AMBAC Insured, 6.35%, 8/01/25 .................................................................................. 1,000,000 1,004,050 Lake County School Board COP, Series A, AMBAC Insured, 5.00%, 6/01/30 ...................... 4,080,000 4,226,676 Lee County Airport Revenue, Refunding, FSA Insured, 5.00%, 10/01/33 ................................................. 3,530,000 3,671,059 Series B, FSA Insured, Pre-Refunded, 5.75%, 10/01/33 .................................... 4,000,000 4,272,480 Lynn Haven Capital Improvement Revenue, MBIA Insured, Pre-Refunded, 5.50%, 12/01/32 ........ 2,000,000 2,125,620 Maitland CDA Revenue, AMBAC Insured, 5.00%, 7/01/34 ........................................ 2,595,000 2,683,697 Marion County Utility System Revenue, FGIC Insured, 5.00%, 12/01/31 ........................ 1,500,000 1,553,070 Miami Beach Water and Sewer Revenue, AMBAC Insured, 5.00%, 9/01/30 ......................... 3,000,000 3,096,150 Miami-Dade County Aviation Revenue, Miami International Airport, Hub, Series B, FGIC Insured, 5.00%, 10/01/30 ............................................ 3,500,000 3,618,965 Refunding, Series A, CIFG Insured, 5.00%, 10/01/38 ...................................... 1,625,000 1,660,393 Series B, FGIC Insured, 5.75%, 10/01/29 ................................................. 2,500,000 2,649,400 Miami-Dade County GO, Building Better Communities Program, FGIC Insured, 5.00%, 7/01/33 .................................................................................. 2,000,000 2,083,480 Miami-Dade County Public Facilities Revenue, Jackson Health System, Series A, MBIA Insured, 5.00%, 6/01/31 ................................................................................. 1,650,000 1,704,846 6/01/35 ................................................................................. 2,000,000 2,063,760 Nassau County Public Improvement Revenue, MBIA Insured, 5.00%, 5/01/31 ..................... 5,000,000 5,129,850 Ocala Utility System Revenue, Refunding, Series A, FGIC Insured, 5.00%, 10/01/31 ........... 2,000,000 2,079,920 Ocoee Water and Sewer System Revenue, AMBAC Insured, 5.625%, 10/01/26 ...................... 4,220,000 4,287,773 Orange County School Board COP, AMBAC Insured, 5.50%, 8/01/25 .............................. 1,000,000 1,044,000 Orange County Tourist Development Tax Revenue, AMBAC Insured, 5.50%, 10/01/32 ......................................................................... 2,000,000 2,141,140 Pre-Refunded, 5.50%, 10/01/31 ........................................................... 1,000,000 1,038,520 Osceola County HFA, MFHR, Tierra Vista Apartment Project, Series A, FSA Insured, 5.70%, 12/01/17 ................................................................................. 480,000 482,701 Osceola County Tourist Development Tax Revenue, FGIC Insured, 5.00%, 10/01/32 .............. 3,000,000 3,094,440 Palm Beach County IDR, South Florida Fair Project, AMBAC Insured, 5.50%, 6/01/31 ........... 2,000,000 2,080,280 Palm Beach County Public Improvement Revenue, Convention Center Project, FGIC Insured, Pre-Refunded, 5.125%, 11/01/30 ........................................................... 1,000,000 1,051,180 Palm Beach County School Board COP, Series A, AMBAC Insured, Pre-Refunded, 5.125%, 8/01/24 ............................................ 3,000,000 3,171,030 FGIC Insured, Pre-Refunded, 6.00%, 8/01/22 .............................................. 3,000,000 3,211,740 Panama City Beach Utility Revenue, Refunding, AMBAC Insured, 5.00%, 6/01/32 ................ 2,000,000 2,070,020 Pembroke Pines Public Improvement Revenue, Series A, AMBAC Insured, 5.00%, 10/01/29 ................................................ 2,000,000 2,085,740 Series B, AMBAC Insured, 5.00%, 10/01/34 ................................................ 2,000,000 2,075,560
Quarterly Statements of Investments | 41 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FLORIDA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) FLORIDA (CONTINUED) Pinellas County Sewer Revenue, FSA Insured, 5.00%, 10/01/32 ................................ $ 3,000,000 $ 3,101,580 Polk County Capital Improvement Revenue, FSA Insured, Pre-Refunded, 5.75%, 12/01/21 ........ 1,000,000 1,070,900 Polk County Public Facilities Revenue, MBIA Insured, 5.00%, 12/01/33 ....................... 2,000,000 2,087,120 Polk County School Board COP, Series A, FSA Insured, 5.00%, 1/01/26 ........................ 1,000,000 1,028,740 Polk County Utility System Revenue, Series A, FGIC Insured, 5.00%, 10/01/30 ................................................................................ 1,000,000 1,039,690 10/01/34 ................................................................................ 2,000,000 2,075,560 Port Orange GO, MBIA Insured, 5.00%, 4/01/33 ............................................... 1,755,000 1,833,817 St. Augustine Capital Improvement Revenue, Refunding, AMBAC Insured, 5.00%, 10/01/29 ................................................................................. 1,250,000 1,303,588 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 5,203,300 St. Lucie West Services District Utility Revenue, senior lien, MBIA Insured, 6.125%, 10/01/32 ................................................................................. 2,240,000 2,427,286 Tavares Water and Sewer Revenue, AMBAC Insured, 5.50%, 10/01/30 ............................ 1,000,000 1,044,270 University of Central Florida Athletics Assn. Inc. COP, Series A, FGIC Insured, 5.00%, 10/01/27 ................................................................................ 1,000,000 1,035,730 10/01/30 ................................................................................ 1,485,000 1,533,886 University of Central Florida COP, University of Central Florida Convocation Corp., Series A, FGIC Insured, 5.00%, 10/01/35 ......................................................... 1,500,000 1,552,545 --------------- TOTAL LONG TERM INVESTMENTS (COST $152,015,592) ............................................ 158,925,541 --------------- SHORT TERM INVESTMENT (COST $170,000) 0.1% MUNICIPAL BOND 0.1% FLORIDA 0.1% a Indian River County Revenue, Saint Edwards School Project, Weekly VRDN and Put, 3.81%, 7/01/27 .................................................................................. 170,000 170,000 --------------- TOTAL INVESTMENTS (COST $152,185,592) 99.0% ................................................ 159,095,541 OTHER ASSETS, LESS LIABILITIES 1.0% ........................................................ 1,583,177 --------------- NET ASSETS 100.0% .......................................................................... $ 160,678,718 ===============
See Selected Portfolio Abbreviations on page 176. 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. 42 | See Notes to Statements of Investments. | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FLORIDA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 98.9% MUNICIPAL BONDS 98.9% FLORIDA 92.3% Alachua County School Board COP, AMBAC Insured, 5.00%, 7/01/21 ............................. $ 2,000,000 $ 2,083,480 Brevard County Health Facilities Authority Health Care Facilities Revenue, Health First Inc. Project, MBIA Insured, 5.00%, 4/01/26 .................................................... 5,000,000 5,146,300 Brevard County School Board COP, AMBAC Insured, Pre-Refunded, 5.00%, 7/01/26 ........................................... 5,000,000 5,255,450 Refunding, Series A, AMBAC Insured, 5.40%, 7/01/11 .................................... 4,415,000 4,650,099 Series A, FGIC Insured, 5.00%, 7/01/30 ................................................ 4,500,000 4,660,425 Broward County Educational Facilities Authority Revenue, Educational Facilities, Nova Southeastern, Refunding, Series B, 5.60%, 4/01/29 ................................... 3,180,000 3,326,280 Broward County Health Facilities Authority Revenue, Catholic Health Services, Refunding, 5.50%, 8/15/20 ........................................................................... 9,360,000 9,723,730 Broward County HFA, MFHR, Bridgewater Place Apartments Project, Series A, 5.45%, 10/01/34 ................. 3,000,000 3,071,550 MFHR, Cross Keys Apartments Project, Series A, 5.80%, 10/01/33 ........................ 1,980,000 2,025,342 MFHR, Cross Keys Apartments Project, Series A, 5.85%, 4/01/39 ......................... 5,730,000 5,859,670 MFHR, Stirling Apartments Phase II, Series A, 5.35%, 10/01/29 ......................... 990,000 1,001,920 MFHR, Stirling Apartments Phase II, Series A, 5.40%, 4/01/39 .......................... 1,980,000 1,997,780 SFMR, Refunding, Series B, FHA Insured, zero cpn., 4/01/29 ............................ 385,000 85,493 Broward County HFAR, Series D, 6.90%, 6/01/09 ........................................................................ 15,000 15,061 7.375%, 6/01/21 ....................................................................... 110,000 110,825 Broward County School Board COP, Series A, FSA Insured, 5.00%, 7/01/26 ..................... 21,500,000 22,158,975 Broward County Water and Sewer Utility Revenue, Refunding, Series A, AMBAC Insured, zero cpn., 10/01/08 ...................................................................... 1,235,000 1,149,118 Cape Canaveral Hospital District Revenue COP, Refunding, 5.25%, 1/01/28 .................... 3,500,000 3,545,675 Celebration CDD, Special Assessment, Series A, MBIA Insured, 5.50%, 5/01/18 ................ 1,455,000 1,479,386 Citrus County Hospital Board Revenue, Citrus Memorial Hospital, Refunding, 6.25%, 8/15/23 .................................................................................. 9,595,000 10,316,160 Clearwater MFR, Rental Housing, Drew Gardens Projects, Refunding, Series A, FHA Insured, 6.50%, 10/01/25 .......................................................................... 2,405,000 2,419,021 Clermont Water and Sewer Revenue, Refunding, FSA Insured, 5.375%, 12/01/30 ................. 5,000,000 5,160,100 Crossing at Fleming Island CDD, Florida Special Assessment Revenue, Refunding, Series B, MBIA Insured, 5.80%, 5/01/16 ............................................................. 5,980,000 6,339,099 Dade County Aviation Revenue, Miami International Airport, Series B, FSA Insured, 5.125%, 10/01/22 ............................................... 4,750,000 4,832,460 Series C, FSA Insured, 5.125%, 10/01/27 ............................................... 9,550,000 9,725,147 Dade County Water and Sewer System Revenue, FGIC Insured, 5.25%, 10/01/26 .................. 13,000,000 13,182,260 Daytona Beach Utility System Revenue, Refunding, Series B, FGIC Insured, 5.00%, 11/15/32 ................................................................................. 3,250,000 3,371,225 Duval County HFA, MFHR, Mortgage, Eagles Point North, Series A, MBIA Insured, 5.60%, 7/01/17 ........................................................................ 1,000,000 1,019,230 5.70%, 7/01/27 ........................................................................ 2,000,000 2,029,900 Enterprise CDD, Water and Sewer Revenue, MBIA Insured, 5.50%, 5/01/26 ...................... 3,000,000 3,109,470 Escambia County Health Facilities Authority Health Facility Revenue, Baptist Hospital and Baptist Manor, 5.125%, 10/01/19 .................................. 8,750,000 8,886,763 Florida Health Care Facility Loan VHA Project, AMBAC Insured, 5.95%, 7/01/20 .......... 1,235,000 1,321,289
Quarterly Statements of Investments | 43 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FLORIDA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) FLORIDA (CONTINUED) Escambia County Health Facilities Authority Revenue, Ascension Health Credit, Series A-2, AMBAC Insured, Pre-Refunded, 5.75%, 11/15/29 ............................................. $ 25,000,000 $ 26,313,250 Escambia County HFA, SFMR, Multi County Program, Series A, MBIA Insured, 6.40%, 10/01/30 ................................................................................. 225,000 226,496 Escambia County HFA Dormitory Revenue, University of West Florida Foundation Inc. Project, Refunding, MBIA Insured, 5.00%, 6/01/31 .................................................. 6,580,000 6,856,952 Florida HFAR, General Mortgage, Refunding, Series A, FHA Insured, 6.40%, 6/01/24 .................... 240,000 241,670 Homeowner Mortgage, Series 1, MBIA Insured, 5.625%, 7/01/17 ........................... 1,760,000 1,796,485 MFH, Driftwood Terrace Project, Series I, 7.65%, 12/20/31 ............................. 3,215,000 3,218,472 Reserve at Kanapaha, Series G, AMBAC Insured, 5.70%, 7/01/37 .......................... 5,000,000 5,085,600 Reserve at Northshore, Series H, AMBAC Insured, 5.70%, 5/01/37 ........................ 2,000,000 2,039,420 Riverfront Apartments, Series A, AMBAC Insured, 6.25%, 4/01/37 ........................ 1,300,000 1,331,044 Florida HFC Revenue, Brenwood Trace Apartments, Series E-1, FSA Insured, 5.65%, 6/01/19 .................... 1,245,000 1,290,891 Brenwood Trace Apartments, Series E-1, FSA Insured, 5.80%, 12/01/38 ................... 4,965,000 5,140,413 Capital Appreciation, Homeowner Mortgage, Series 4, FSA Insured, zero cpn., 7/01/30 ... 2,520,000 514,181 Deer Meadows Apartments, Series R, FNMA Insured, 6.00%, 5/01/32 ....................... 3,435,000 3,588,716 Deferred Interest, Homeowner Mortgage, Series 1, MBIA Insured, zero cpn., 7/01/17 ..... 1,365,000 803,316 Deferred Interest, Homeowner Mortgage, Series 2, MBIA Insured, zero cpn., 1/01/29 ..... 16,180,000 4,886,522 Homeowner Mortgage, Series 4, FSA Insured, 6.25%, 7/01/22 ............................. 1,485,000 1,538,059 Housing-Waverly Apartments, Series C-1, FSA Insured, 6.50%, 7/01/40 ................... 3,000,000 3,154,950 Florida Intergovernmental Finance Commission Capital Revenue, Series C-1, AMBAC Insured, 5.00%, 2/01/21 ........................................................................... 1,355,000 1,395,013 Florida Municipal Loan Council Revenue, Series B, MBIA Insured, Pre-Refunded, 5.75%, 11/01/29 ................................................................................. 1,500,000 1,582,050 Florida Ports Financing Commission Revenue, State Transportation Trust Fund, Intermodal Program, FGIC Insured, 5.50%, 10/01/23 ................................................... 7,000,000 7,260,890 Florida State Board of Education Capital Outlay GO, Public Education, Refunding, Series D, 5.75%, 6/01/22 ................................................... 25,900,000 27,394,948 Refunding, Series D, 6.00%, 6/01/23 ................................................... 15,000,000 18,023,400 Refunding, Series G, FGIC Insured, 5.00%, 6/01/31 ..................................... 5,000,000 5,177,700 Series C, FGIC Insured, Pre-Refunded, 5.75%, 6/01/29 .................................. 5,000,000 5,313,300 Florida State Board of Education GO, Series F, MBIA Insured, 5.00%, 6/01/28 ................ 20,000,000 20,828,600 Florida State Board of Education Lottery Revenue, Series A, FGIC Insured, 5.00%, 7/01/20 .................................................................................. 7,000,000 7,370,020 Florida State Board of Education Public Education GO, Refunding, Series C, AMBAC Insured, 5.00%, 6/01/34 ........................................................................... 15,000,000 15,610,950 Florida State Board Regent Housing Revenue, University of Central Florida, AMBAC Insured, 5.75%, 10/01/29 ......................... 8,650,000 9,068,747 University of Florida, FGIC Insured, 5.75%, 7/01/25 ................................... 3,400,000 3,617,668 University of Florida, FGIC Insured, 5.25%, 7/01/30 ................................... 2,060,000 2,162,300 Florida State Department of Environmental Protection Preservation Revenue, Florida Forever, Series A, MBIA Insured, 5.00%, 7/01/21 ................................................... 4,000,000 4,165,480 Florida State Department of General Services Division Facilities Management Revenue, Florida Facilities Pool, Series B, FSA Insured, Pre-Refunded, 5.50%, 9/01/28 ............. 10,000,000 10,463,900
44 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FLORIDA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) FLORIDA (CONTINUED) Florida State Department of Transportation GO, Right of Way, Series A, 4.75%, 7/01/24 ...... $ 6,000,000 $ 6,089,820 Florida State Mid-Bay Bridge Authority Revenue, Exchangeable, Refunding, Series D, 6.10%, 10/01/22 .................................... 13,695,000 14,120,093 Exchangeable, Series A, 5.95%, 10/01/13 ............................................... 10,380,000 10,848,761 Exchangeable, Series A, 6.05%, 10/01/22 ............................................... 7,000,000 7,230,020 Exchangeable, Series D, ETM, 6.10%, 10/01/22 .......................................... 3,545,000 4,204,760 Series A, AMBAC Insured, Pre-Refunded, zero cpn., 10/01/25 ............................ 9,845,000 4,197,810 Series A, AMBAC Insured, Pre-Refunded, zero cpn., 10/01/26 ............................ 2,500,000 1,009,675 Series A, ETM, 6.875%, 10/01/22 ....................................................... 6,000,000 7,590,360 Florida State Municipal Power Agency Revenue, Stanton II Project, Refunding, AMBAC Insured, 5.00%, 10/01/26 ........................................................... 5,000,000 5,174,250 Florida State Turnpike Authority Turnpike Revenue, Department of Transportation, Series B, 5.00%, 7/01/30 ........................................................................... 3,455,000 3,544,346 Fort Pierce Utilities Authority Revenue, AMBAC Insured, 5.00%, 10/01/27 ........................................................ 7,000,000 7,223,230 Capital Appreciation, Series B, AMBAC Insured, zero cpn., 10/01/20 .................... 3,090,000 1,701,323 Capital Appreciation, Series B, AMBAC Insured, zero cpn., 10/01/21 .................... 2,585,000 1,357,125 Capital Appreciation, Series B, AMBAC Insured, zero cpn., 10/01/22 .................... 3,090,000 1,543,919 Capital Appreciation, Series B, AMBAC Insured, zero cpn., 10/01/23 .................... 3,060,000 1,456,591 Capital Appreciation, Series B, AMBAC Insured, zero cpn., 10/01/24 .................... 2,560,000 1,160,474 Halifax Hospital Medical Center Hospital Revenue, Refunding and Improvement, Series A, 5.00%, 6/01/38 ........................................................................... 11,395,000 11,444,112 Hernando County School Board COP, MBIA Insured, 5.00%, 7/01/35 ............................. 12,050,000 12,500,308 Hialeah Housing Authority Revenue, Affordable Housing Program, Refunding, GNMA Secured, 5.30%, 12/20/18 .......................................................................... 1,240,000 1,306,005 Highlands County Health Facilities Authority Revenue, Adventist Health Systems, Pre-Refunded, 5.25%, 11/15/20 ......................................................... 10,000,000 10,295,000 Series A, Pre-Refunded, 6.00%, 11/15/31 ............................................... 16,000,000 17,445,440 Hillsborough County Assessment Revenue, Capacity Assessment Special, FSA Insured, 5.125%, 3/01/20 .......................................................................... 1,000,000 1,035,900 Hillsborough County HFA Mortgage Revenue, SF, Series A, GNMA Secured, 5.875%, 4/01/30 ......................................................... 780,000 796,255 zero cpn., 4/01/32 .................................................................... 475,000 103,104 Hillsborough County IDA, PCR, Tampa Electric Co. Project, Refunding, 5.50%, 10/01/23 ....... 16,000,000 16,656,480 Hillsborough County IDAR, Tampa General Hospital Project, Refunding, Series B, 5.40%, 10/01/28 ................................................................................. 7,000,000 7,272,580 Hillsborough County School Board COP, Master Lease Program, Series A, MBIA Insured, 5.375%, 7/01/21 ......................... 5,000,000 5,128,250 Master Lease Program, Series A, MBIA Insured, 5.25%, 7/01/22 .......................... 5,000,000 5,118,050 MBIA Insured, 5.00%, 7/01/26 .......................................................... 10,830,000 11,252,262 MBIA Insured, 5.00%, 7/01/29 .......................................................... 10,000,000 10,337,900 MBIA Insured, Pre-Refunded, 5.375%, 7/01/26 ........................................... 8,000,000 8,256,640 Indian River County Hospital District Revenue, Refunding, FSA Insured, 5.70%, 10/01/15 ................................................................................. 1,000,000 1,016,290 Jacksonville Capital Improvement Revenue, Refunding, Series C, AMBAC Insured, 5.00%, 10/01/25 ................................... 3,460,000 3,590,580 Series A, AMBAC Insured, 5.00%, 10/01/30 .............................................. 10,000,000 10,300,500
Quarterly Statements of Investments | 45 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FLORIDA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) FLORIDA (CONTINUED) Jacksonville Economic Development Commission Health Care Facilities Revenue, Mayo Clinic, 5.00%, 11/15/36 .......................................................................... $ 20,000,000 $ 20,418,800 Jacksonville Guaranteed Entitlement Revenue, Refunding and Improvement, FGIC Insured, 5.00%, 10/01/32 .......................................................................... 17,250,000 17,793,030 Jacksonville Sales Tax Revenue, AMBAC Insured, 5.00%, 10/01/23 ............................. 5,000,000 5,162,300 Jacksonville Transportation Revenue, MBIA Insured, 5.25%, 10/01/29 ....................................................................... 17,955,000 18,749,688 5.00%, 10/01/31 ....................................................................... 25,000,000 25,711,750 Jea Water and Sewer System Revenue, Series B, 5.00%, 10/01/25 .............................. 1,500,000 1,561,440 Kissimmee Water and Sewer Revenue, AMBAC Insured, ETM, 6.00%, 10/01/15 ..................... 5,000,000 5,013,650 Lakeland Electric and Water Revenue, Capital Appreciation, ETM, zero cpn., 10/01/14 ........ 5,770,000 4,268,184 Lakeland Hospital System Revenue, Lakeland Regional Health System, Pre-Refunded, 5.75%, 11/15/27 ......................................................... 6,925,000 7,603,927 Pre-Refunded, 5.50%, 11/15/32 ......................................................... 12,070,000 13,106,572 Series A, MBIA Insured, Pre-Refunded, 5.50%, 11/15/26 ................................. 10,000,000 10,496,200 Lee County Airport Revenue, Refunding, FSA Insured, 5.00%, 10/01/33 ............................................... 20,000,000 20,799,200 Series A, FSA Insured, 6.00%, 10/01/32 ................................................ 11,405,000 12,090,212 Lee County IDA Health Care Facilities Revenue, Shell Point Village Project, Series A, Pre-Refunded, 5.50%, 11/15/21 .............................................................................. 7,500,000 7,872,150 11/15/29 .............................................................................. 4,000,000 4,198,480 Lee County School Board COP, Series A, FSA Insured, 5.00%, 8/01/28 ......................... 7,500,000 7,784,325 Lee Memorial Health System Hospital Revenue, Refunding, Series A, MBIA Insured, 5.00%, 4/01/24 .................................................................................. 15,000,000 15,589,350 Lessburg Hospital Revenue, Leesburg Regional Medical Center Project, 5.50%, 7/01/32 ........ 4,150,000 4,279,231 Marion County Utility System Revenue, FGIC Insured, 5.00%, 12/01/31 ......................................................... 5,000,000 5,176,900 Series A, MBIA Insured, 5.00%, 12/01/28 ............................................... 5,000,000 5,202,050 Melbourne Water and Sewer Revenue, Capital Appreciation, FGIC Insured, ETM, zero cpn., 10/01/26 .......................... 1,500,000 634,830 Capital Appreciation, Refunding, Series B, FGIC Insured, zero cpn., 10/01/22 .......... 1,785,000 891,875 Capital Appreciation, Refunding, Series B, FGIC Insured, zero cpn., 10/01/26 .......... 4,500,000 1,854,765 FGIC Insured, Pre-Refunded, 5.25%, 10/01/30 ........................................... 6,000,000 6,315,960 Miami Beach Special Obligation, Subordinated, FGIC Insured, ETM, 7.375%, 12/01/08 .......... 610,000 620,754 Miami Beach Water and Sewer Revenue, AMBAC Insured, 5.00%, 9/01/30 ......................... 7,000,000 7,224,350 Miami-Dade County Aviation Revenue, Miami International Airport, Hub of the Americas, Series B, FGIC Insured, 5.00%, 10/01/30 .......................... 4,440,000 4,590,916 Refunding, FGIC Insured, 5.375%, 10/01/27 ............................................. 5,000,000 5,219,100 Refunding, FGIC Insured, 5.375%, 10/01/32 ............................................. 5,000,000 5,209,500 Refunding, Series A, XLCA Insured, 5.00%, 10/01/37 .................................... 10,000,000 10,217,800 Miami-Dade County Educational Facilities Authority Revenue, Series A, AMBAC Insured, 5.75%, 4/01/29 ........................................................................... 10,000,000 10,598,200 Miami-Dade County HFA, MFHR, Cedar Grove Apartments, FSA Insured, 5.50%, 8/01/27 ............................. 2,015,000 2,065,899 MFMR, Villa Esperanza Apartments Project, 5.25%, 10/01/19 ............................. 430,000 436,768 MFMR, Villa Esperanza Apartments Project, 5.40%, 10/01/33 ............................. 1,500,000 1,521,795
46 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FLORIDA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) FLORIDA (CONTINUED) Miami-Dade County IDAR, Airis Miami ll LLC Project, AMBAC Insured, 6.00%, 10/15/25 ......... $ 4,500,000 $ 4,715,595 Miami-Dade County Public Facilities Revenue, Jackson Health System, Series A, MBIA Insured, 5.00%, 6/01/35 ............................................................. 20,970,000 21,638,524 Miami-Dade County Special Obligation Revenue, Juvenile Courthouse Project, Series A, AMBAC Insured, 5.00%, 4/01/35 .................. 5,000,000 5,154,900 Sub Series B, MBIA Insured, zero cpn., 10/01/36 ....................................... 5,635,000 1,159,796 Sub Series C, MBIA Insured, zero cpn., 10/01/28 ....................................... 8,305,000 2,633,100 sub. lien, Refunding, Series A, MBIA Insured, zero cpn., 10/01/25 ..................... 22,365,000 8,537,615 North Broward Hospital District Revenue, Improvement, 6.00%, 1/15/31 ........................................................... 2,290,000 2,437,659 Improvement, Pre-Refunded, 6.00%, 1/15/31 ............................................. 23,240,000 25,013,212 Refunding, MBIA Insured, 5.375%, 1/15/24 .............................................. 6,055,000 6,123,361 Refunding, MBIA Insured, 5.75%, 1/15/27 ............................................... 11,720,000 11,855,718 North Miami Health Facilities Authority Revenue, Catholic Health Services Obligation Group, 6.00%, 8/15/16 ............................................................................... 2,000,000 2,026,560 8/15/24 ............................................................................... 1,750,000 1,774,150 Orange County Health Facilities Authority Revenue, Adventist Health System Inc., Pre-Refunded, 6.375%, 11/15/20 .......................... 3,000,000 3,263,340 Adventist Health System Inc., Pre-Refunded, 6.25%, 11/15/24 ........................... 5,500,000 6,114,130 Adventist Health System Inc., Pre-Refunded, 6.50%, 11/15/30 ........................... 10,750,000 11,736,527 Hospital, Adventist Health System Inc., Pre-Refunded, 5.625%, 11/15/32 ................ 15,000,000 16,340,850 Hospital, Orlando Regional Healthcare, Series B, 5.125%, 11/15/39 ..................... 5,000,000 5,113,250 Orlando Regional Healthcare System, Pre-Refunded, 6.00%, 12/01/29 ..................... 6,000,000 6,617,160 Orlando Regional Healthcare System, Refunding, Series E, 6.00%, 10/01/26 .............. 11,750,000 12,372,632 Orlando Regional Healthcare System, Series E, Pre-Refunded, 6.00%, 10/01/26 ........... 250,000 264,563 Orange County HFA Homeowner Revenue, Series C-1, GNMA Secured, 5.70%, 9/01/26 .............. 565,000 565,582 Orange County School Board COP, Series A, MBIA Insured, 5.00%, 8/01/27 ..................... 12,000,000 12,356,040 Orange County Tourist Development Tax Revenue, AMBAC Insured, 5.50%, 10/01/32 ........................................................ 20,000,000 21,411,400 AMBAC Insured, Pre-Refunded, 5.50%, 10/01/31 .......................................... 10,500,000 10,904,460 Refunding, AMBAC Insured, 5.00%, 10/01/31 ............................................. 5,000,000 5,206,850 Refunding, MBIA Insured, 5.125%, 10/01/20 ............................................. 10,000,000 10,137,300 Refunding, XLCA Insured, 5.00%, 10/01/31 .............................................. 12,970,000 13,538,864 senior lien, AMBAC Insured, Pre-Refunded, 5.125%, 10/01/25 ............................ 5,500,000 5,798,210 senior lien, AMBAC Insured, Pre-Refunded, 5.125%, 10/01/30 ............................ 10,000,000 10,542,200 Orlando and Orange County Expressway Authority Expressway Revenue, junior lien, FGIC Insured, 5.00%, 7/01/28 ............................................. 8,000,000 8,143,520 senior lien, AMBAC Insured, ETM, 7.625%, 7/01/18 ...................................... 265,000 299,270 Series B, AMBAC Insured, 5.00%, 7/01/35 ............................................... 9,185,000 9,480,481 Osceola County IDAR, Community Provider Pooled Loan Program, Series A, FSA Insured, 7.75%, 7/01/10 ................................................. 619,000 619,867 Series C, FSA Insured, 7.60%, 7/01/10 ................................................. 311,000 311,423 Osceola County Sales Tax Revenue, FSA Insured, 5.00%, 4/01/24 .............................. 10,000,000 10,245,000 Osceola County Tourist Development Tax Revenue, FGIC Insured, 5.00%, 10/01/32 .............. 10,000,000 10,314,800 Palm Beach County Financing Authority MFR, Housing Windsor Park Apartment Project, Series A, 5.90%, 6/01/38 ................................................................. 985,000 1,003,173
Quarterly Statements of Investments | 47 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FLORIDA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) FLORIDA (CONTINUED) Palm Beach County HFAR, Acts Retirement-Life Communities, 5.125%, 11/15/29 ................. $ 3,650,000 $ 3,673,324 Palm Beach County IDR, South Florida Fair Project, AMBAC Insured, 5.50%, 6/01/31 ........... 5,000,000 5,200,700 Palm Beach County Public Improvement Revenue, Convention Center Project, FGIC Insured, Pre-Refunded, 5.125%, 11/01/30 ........................................................... 6,250,000 6,569,875 Palm Beach County School Board COP, Series A, AMBAC Insured, Pre-Refunded, 5.125%, 8/01/24 ................................ 15,000,000 15,855,150 Series A, FGIC Insured, Pre-Refunded, 6.00%, 8/01/22 .................................. 5,000,000 5,352,900 Series A, FSA Insured, 5.00%, 8/01/31 ................................................. 17,500,000 18,202,975 Series C, FSA Insured, Pre-Refunded, 5.00%, 8/01/27 ................................... 10,000,000 10,484,900 Panama City Beach Utility Revenue, Refunding, AMBAC Insured, 5.00%, 6/01/27 ............................................................................... 4,450,000 4,622,438 6/01/32 ............................................................................... 2,795,000 2,892,853 Pensacola Airport Revenue, Series A, MBIA Insured, Pre-Refunded, 5.75%, 10/01/27 ........... 5,615,000 5,762,899 Pinellas County Health Facilities Authority Revenue, Baycare Health System, FSA Insured, 5.00%, 11/15/30 .......................................................................... 11,500,000 11,789,455 Pinellas County HFA, SFHR, Multi County, Series B-1, GNMA Insured, zero cpn., 9/01/31 ...... 360,000 72,248 Polk County Capital Improvement Revenue, FSA Insured, Pre-Refunded, 5.75%, 12/01/21 ................................................................................. 2,350,000 2,516,615 Polk County IDAR, Solid Waste Disposal Facility, Tampa Electric Co. Project, 5.85%, 12/01/30 ................................................................................. 15,000,000 15,318,000 Polk County School Board COP, Series A, FSA Insured, 5.00%, 1/01/26 ........................ 4,000,000 4,114,960 Polk County Utility System Revenue, Series A, FGIC Insured, 5.00%, 10/01/34 ................ 1,000,000 1,037,780 Port Everglades Authority Port Improvement Revenue, Capital Appreciation, ETM, zero cpn., 9/01/10 ............................................................... 25,475,000 21,547,264 zero cpn., 9/01/10 .................................................................... 13,020,000 10,421,208 Port St. Lucie Utility Revenue, MBIA Insured, Pre-Refunded, zero cpn., 9/01/29 ........................................ 20,000,000 5,908,200 System, Capital Appreciation, Refunding, Series A, MBIA Insured, zero cpn., 9/01/32 ... 5,000,000 1,427,050 System, Capital Appreciation, Refunding, Series A, MBIA Insured, zero cpn., 9/01/33 ... 5,000,000 1,357,900 System, Refunding, Series A, MBIA Insured, 5.00%, 9/01/30 ............................. 11,580,000 12,137,924 System, Refunding, Series A, MBIA Insured, 5.00%, 9/01/31 ............................. 8,805,000 9,222,357 Sarasota County Utility System Revenue, FGIC Insured, Pre-Refunded, 5.75%, 10/01/27 ........ 18,000,000 18,296,100 Sarasota Special Obligated Revenue, Refunding, AMBAC Insured, zero cpn., 11/01/09 .............................................................................. 1,365,000 1,241,536 11/01/12 .............................................................................. 1,780,000 1,431,636 11/01/15 .............................................................................. 2,180,000 1,533,390 South Broward Hospital District Revenue, 5.60%, 5/01/27 ........................................................................ 5,000,000 5,405,700 5.625%, 5/01/32 ....................................................................... 16,250,000 17,586,562 St. Johns County Water and Sewer Revenue, Capital Appreciation, AMBAC Insured, zero cpn., 6/01/22 ............................................................................... 4,000,000 1,878,120 6/01/23 ............................................................................... 4,255,000 1,886,454 6/01/24 ............................................................................... 1,500,000 627,030 6/01/25 ............................................................................... 2,130,000 842,948 St. Lucie West Services District Utility Revenue, senior lien, MBIA Insured, 6.125%, 10/01/32 ................................................................................. 10,000,000 10,836,100 St. Petersburg Public Utilities Revenue, Refunding, MBIA Insured, 5.00%, 10/01/35 .......... 10,795,000 11,256,918
48 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FLORIDA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) FLORIDA (CONTINUED) Sumter County Capital Improvement Revenue, AMBAC Insured, 5.00%, 6/01/30 ................... $ 3,520,000 $ 3,672,733 Sunrise Lakes Recreation District GO, Phase 4, Refunding, AMBAC Insured, 5.25%, 8/01/24 .................................................................................. 4,320,000 4,371,408 Sunrise Utilities System Revenue, Refunding, AMBAC Insured, 5.20%, 10/01/22 ................ 2,550,000 2,772,947 Tallahassee Energy System Revenue, MBIA Insured, 5.00%, 10/01/35 ........................... 10,000,000 10,420,800 Tamarac Sales Tax Revenue, FGIC Insured, 5.00%, 4/01/22 .................................... 2,490,000 2,584,794 Tampa Bay Water Utility System Revenue, FGIC Insured, Pre-Refunded, 5.75%, 10/01/29 ........................................... 15,000,000 16,123,950 Series B, FGIC Insured, 5.00%, 10/01/31 ............................................... 10,000,000 10,284,700 Tampa Sports Authority Revenue, Guaranteed Package, Tampa Bay Arena Project, MBIA Insured, 6.00%, 10/01/15 ....................................................................... 1,000,000 1,098,200 6.05%, 10/01/20 ....................................................................... 1,715,000 2,010,906 6.10%, 10/01/26 ....................................................................... 2,695,000 3,265,963 Tampa Water and Sewer Revenue, sub. lien, Series A, AMBAC Insured, ETM, 7.25%, 10/01/16 ................................................................................. 1,330,000 1,549,184 University of Central Florida COP, University of Central Florida Convocation Corp., Series A, FGIC Insured, 5.00%, 10/01/35 .................................................. 8,820,000 9,128,965 Viera East CDD, Water and Sewer Revenue, 6.75%, 5/01/09 .................................... 1,060,000 1,074,564 Viera East CDD Special Assessment, Refunding, 7.00%, 5/01/26 ............................................................. 6,625,000 7,142,346 Series B, ETM, 6.75%, 5/01/14 ......................................................... 4,835,000 5,273,873 Village Center CDD Recreational Revenue, Series A, MBIA Insured, 5.20%, 11/01/25 ........... 10,000,000 10,501,900 Volusia County Educational Facility Authority Revenue, Educational Facilities, Embry Riddle University, Refunding, Series B, AMBAC Insured, 5.25%, 10/15/22 .......... 2,000,000 2,073,440 Stetson University Inc. Project, AMBAC Insured, 5.25%, 6/01/29 ........................ 5,000,000 5,159,700 Volusia County School Board COP, Master Lease Program, FSA Insured, 5.50%, 8/01/24 ......... 5,000,000 5,209,600 West Lake CDD, Special Assessment Revenue, MBIA Insured, 5.75%, 5/01/17 .................... 1,845,000 1,933,542 West Orange Healthcare District Revenue, Series A, 5.65%, 2/01/22 .......................... 10,850,000 11,298,756 West Palm Beach CRDA Revenue, Northwood Pleasant Community Redevelopment, 5.00%, 3/01/35 .................................................................................. 1,000,000 1,021,950 --------------- 1,491,165,022 --------------- U.S. TERRITORIES 6.6% PUERTO RICO 5.9% Puerto Rico Commonwealth GO, Public Improvement, Series A, 5.00%, 7/01/25 ............................................................................... 5,000,000 5,155,950 7/01/29 ............................................................................... 10,000,000 10,305,800 7/01/33 ............................................................................... 13,000,000 13,334,620 Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Refunding, Series A, MBIA Insured, 5.00%, 7/01/38 ..................................... 560,000 569,750 Refunding, Series K, 5.00%, 7/01/30 ................................................... 5,000,000 5,181,200 Series A, MBIA Insured, Pre-Refunded, 5.00%, 7/01/38 .................................. 12,240,000 12,534,862 Series B, Pre-Refunded, 6.00%, 7/01/39 ................................................ 5,000,000 5,357,500 Series D, Pre-Refunded, 5.375%, 7/01/36 ............................................... 5,000,000 5,355,300 Series G, 5.00%, 7/01/33 .............................................................. 1,680,000 1,724,150 Series G, Pre-Refunded, 5.00%, 7/01/33 ................................................ 3,320,000 3,528,596
Quarterly Statements of Investments | 49 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN FLORIDA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) U.S. TERRITORIES (CONTINUED) PUERTO RICO (CONTINUED) Puerto Rico Electric Power Authority Power Revenue, Series II, Pre-Refunded, 5.25%, 7/01/31 .................................................................................. $ 15,000,000 $ 16,104,000 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 6,365,569 Puerto Rico PBA Guaranteed Revenue, Government Facilities, Refunding, Series D, 5.375%, 7/01/33 .................................................. 1,210,000 1,264,752 Series D, Pre-Refunded, 5.375%, 7/01/33 ............................................... 3,790,000 4,050,297 Series I, 5.00%, 7/01/36 .............................................................. 5,000,000 5,143,750 --------------- 95,976,096 --------------- VIRGIN ISLANDS 0.7% Virgin Islands PFAR, Gross Receipts Taxes Loan Note, Radian Insured, 5.00%, 10/01/33 ....... 10,000,000 10,396,900 --------------- TOTAL U.S. TERRITORIES ..................................................................... 106,372,996 --------------- TOTAL LONG TERM INVESTMENTS (COST $1,509,541,508) .......................................... 1,597,538,018 --------------- SHORT TERM INVESTMENTS 0.2% MUNICIPAL BONDS 0.2% FLORIDA 0.2% a Brevard County Health Facilities Authority Revenue, Wuesthoff Memorial Hospital Project, Weekly VRDN and Put, 3.78%, 8/01/31 ...................................................... 115,000 115,000 a Orange County Health Facilities Authority Revenue, Hospital, Orlando Regional Healthcare, Series A-2, FSA Insued, Daily VRDN and Put, 3.90%, 10/01/41 .............................. 1,210,000 1,210,000 a Pinellas County Health Facilities Authority Revenue, Pooled Hospital Loan Program, Refunding, AMBAC Insured, Daily VRDN and Put, 3.90%, 12/01/15 ............................ 1,325,000 1,325,000 --------------- TOTAL SHORT TERM INVESTMENTS (COST $2,650,000) ............................................. 2,650,000 --------------- TOTAL INVESTMENTS (COST $1,512,191,508) 99.1% .............................................. 1,600,188,018 OTHER ASSETS, LESS LIABILITIES 0.9% ........................................................ 15,138,422 --------------- NET ASSETS 100.0% .......................................................................... $ 1,615,326,440 ===============
See Selected Portfolio Abbreviations on page 176. 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. 50 | See Notes to Statements of Investments. | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN GEORGIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 99.2% MUNICIPAL BONDS 99.2% GEORGIA 97.9% Albany-Dougherty Inner City Authority Revenue, Albany State University Student Housing, Series A, XLCA Insured, 5.00%, 7/01/29 ................................................... $ 4,000,000 $ 4,175,280 Atlanta Airport Passenger Facility Charge Revenue, General, sub. lien, Refunding, Series C, FSA Insured, 5.00%, 1/01/33 .............................................................. 5,000,000 5,174,350 Atlanta Airport Revenue, General, Series A, FGIC Insured, Pre-Refunded, 5.50%, 1/01/26 .......................................................................... 5,000,000 5,251,650 5.60%, 1/01/30 .......................................................................... 5,000,000 5,263,800 Atlanta and Fulton County Recreation Authority Revenue, AMBAC Insured, Pre-Refunded, 5.50%, 12/01/20 .......................................................................... 1,500,000 1,595,730 Atlanta Development Authority Revenue, Tuff Yamacraw LLC Project, Refunding, Series A, AMBAC Insured, 5.00%, 1/01/26 ........... 2,555,000 2,782,114 Yamacraw Design Center Project, Series A, MBIA Insured, Pre-Refunded, 5.125%, 1/01/23 ............................................................................... 4,150,000 4,357,334 Atlanta Public Safety and Judicial Facilities Authority Revenue, Public Safety Facility Project, FSA Insured, 5.00%, 12/01/26 .................................................... 1,140,000 1,204,364 Atlanta Urban Residential Finance Authority MFHR, Fulton Cotton Mill, GNMA Secured, 6.00%, 5/20/17 .......................................................................... 1,040,000 1,066,749 6.125%, 5/20/27 ......................................................................... 1,560,000 1,594,648 Atlanta Water and Wastewater Revenue, FSA Insured, 5.00%, 11/01/24 ............................................................ 4,000,000 4,201,720 Refunding, Series A, MBIA Insured, 5.00%, 11/01/33 ...................................... 8,000,000 8,270,000 Augusta Water and Sewer Revenue, Refunding, FSA Insured, 5.00%, 10/01/32 ................... 5,000,000 5,181,450 Baldwin County Hospital Authority Revenue, Oconee Regional Medical Center, 5.25%, 12/01/22 ......................................................................... 2,500,000 2,477,000 5.375%, 12/01/28 ........................................................................ 2,000,000 1,996,200 Bulloch County Development Authority Lease Revenue, Georgia Southern University, XLCA Insured, 5.00%, 8/01/27 ............................................................. 5,000,000 5,235,300 Cherokee County School System GO, Series A, FGIC Insured, 5.00%, 8/01/28 ................... 3,000,000 3,168,630 Cherokee County Water and Sewage Authority Revenue, MBIA Insured, 6.90%, 8/01/18 ........... 10,000 10,026 Clayton County Development Authority Revenue, Gateway Village Project, Series A, Pre-Refunded, 6.00%, 8/01/23 ......................... 3,500,000 3,728,270 Refunding, Series A, MBIA Insured, 5.00%, 8/01/23 ....................................... 2,310,000 2,429,866 Clayton County MFHR, Pointe Clear Apartments Project, FSA Insured, 5.70%, 7/01/23 .......... 930,000 945,922 Cobb County Development Authority Parking Revenue, Kennesaw State University Foundation Inc. Project, MBIA Insured, 5.00%, 7/15/29 ............................................... 2,000,000 2,078,700 Cobb County Development Authority University Facilities Revenue, Kennesaw State University, Sub Series D, MBIA Insured, 5.00%, 7/15/29 ............................................... 8,000,000 8,339,600 College Park Business and IDAR, Civic Center Project, AMBAC Insured, Pre-Refunded, 5.75%, 9/01/26 .................................................................................. 2,000,000 2,153,080 Columbia County GO, Courthouse/Detention Center Projects, Pre-Refunded, 5.00%, 2/01/24 .................................................................................. 2,000,000 2,056,160 Columbia County Water and Sewer Revenue, FSA Insured, 5.00%, 6/01/24 ....................... 1,130,000 1,184,251 Columbus Water and Sewage Revenue, Refunding, MBIA Insured, 5.00%, 5/01/25 ................. 1,000,000 1,049,930 DeKalb County Public Safety and Judicial Facilities Authority Revenue, Public Safety and Judicial Facility Project, 5.00%, 12/01/29 ............................................... 2,000,000 2,086,220 Dekalb County School District COP, Georgia School Boards Assn., AMBAC Insured, 5.00%, 12/01/27 ................................................................................. 4,285,000 4,509,834
Quarterly Statements of Investments | 51 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN GEORGIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) GEORGIA (CONTINUED) DeKalb County Water and Sewer Revenue, Pre-Refunded, 5.125%, 10/01/31 .......................................................... $ 6,500,000 $ 6,823,440 Refunding, Series B, FSA Insured, 5.00%, 10/01/35 ....................................... 7,000,000 7,599,760 Douglasville-Douglas County Water and Sewer Authority Water and Sewer Revenue, MBIA Insured, 5.00%, 6/01/29 ............................................................. 3,410,000 3,578,249 East Point Building Authority Revenue, Water and Sewer Project, Series A, XLCA Insured, 5.00%, 2/01/34 ........................................................................... 5,480,000 5,734,327 Fayette County PFAR, Criminal Justice Center Project, Refunding, 5.00%, 6/01/26 ............ 3,000,000 3,108,360 Fayette County School District GO, zero cpn. to 9/01/10, 4.75% thereafter, 3/01/21 ............................................................... 1,355,000 1,177,847 4.95% thereafter, 3/01/25 ............................................................... 1,000,000 872,010 Forsyth County GO, Pre-Refunded, 5.75%, 2/01/19 ............................................ 1,500,000 1,599,495 Fulton County Development Authority Revenue, Georgia Tech Foundation Funding, Series A, 5.00%, 11/01/31 .............................. 3,000,000 3,093,210 Georgia Tech Foundation Funding SAC II Project, Series A, 5.25%, 11/01/30 ............... 5,000,000 5,243,800 Molecular Science Building Project, MBIA Insured, 5.00%, 5/01/25 ........................ 2,240,000 2,345,011 Morehouse College Project, Refunding, AMBAC Insured, 5.00%, 12/01/27 .................... 3,000,000 3,168,000 Fulton County Water and Sewer Revenue, FGIC Insured, 5.00%, 1/01/30 ........................ 2,500,000 2,605,000 Gainesville and Hall County Hospital Authority Revenue Anticipation Certificates, Northeast Health System Inc. Project, Refunding, 5.50%, 5/15/31 .......................... 2,500,000 2,579,350 Georgia Municipal Assn. Inc. COP, City Court Atlanta Project, AMBAC Insured, 5.25%, 12/01/26 ................................................................................. 2,000,000 2,121,000 Georgia Municipal Electric Authority Power Revenue, Project 1, Refunding, Sub Series A, MBIA Insured, 5.00%, 1/01/26 ........................ 2,855,000 3,005,801 Series W, 6.60%, 1/01/18 ................................................................ 955,000 1,081,786 Series W, ETM, 6.60%, 1/01/18 ........................................................... 45,000 50,793 Georgia Municipal Gas Authority Gas Revenue, City of Toccoa Project, AMBAC Insured, 5.00%, 6/01/24 .................................................................................. 1,000,000 1,029,920 Georgia Private Colleges and Universities Authority Student Housing Revenue, Mercer Housing Corp. Project, Series A, 6.00%, 6/01/24 .................................................. 2,550,000 2,700,017 Georgia School Board Assn. Inc. COP, DeKalb County Public School Project, MBIA Insured, 5.00%, 12/01/25 .......................................................................... 2,600,000 2,735,850 Georgia State HFAR, MF, Lake Vista Apartments Project, Series A, FSA Insured, 5.95%, 1/01/27 .................................................................................. 1,000,000 1,018,840 Gilmer County GO, XLCA Insured, 5.00%, 4/01/32 ............................................. 1,500,000 1,579,620 Gwinnett County Development Authority COP, Gwinnett County Public Schools Project, MBIA Insured, 5.00%, 1/01/24 ............................................................. 8,500,000 9,032,185 Gwinnett County Hospital Authority Revenue, Anticipation Certificates, Gwinnett Hospital Systems Inc. Project, Series B, MBIA Insured, 5.30%, 9/01/27 ............................. 3,750,000 3,959,137 Gwinnett County Water and Sewer Authority Revenue, Pre-Refunded, 5.25%, 8/01/25 ............ 2,795,000 2,976,256 a Habersham County Hospital Authority Revenue, Anticipation Certificates, XCLA Insured, 5.00%, 12/01/27 .......................................................................... 4,015,000 4,222,535 Habersham County School District GO, MBIA Insured, 5.00%, 4/01/28 .......................... 2,750,000 2,902,323 Henry County Hospital Authority Revenue, Henry Medical Center Inc. Project, Refunding, AMBAC Insured, 6.00%, 7/01/29 ............................................................ 5,000,000 5,355,200 Hogansville Combined Public Utility System Revenue, Refunding, FSA Insured, 6.00%, 10/01/23 ................................................................................. 3,300,000 3,905,484
52 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN GEORGIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) GEORGIA (CONTINUED) Jackson County School District GO, MBIA Insured, 5.00%, 3/01/25 ............................ $ 3,000,000 $ 3,154,950 Marietta Development Authority Revenue, first mortgage, Life College Inc., Refunding, Series A, FSA Insured, 5.75%, 9/01/14 ........................................ 1,800,000 1,808,712 Refunding, Series A, FSA Insured, 5.80%, 9/01/19 ........................................ 1,100,000 1,105,456 Refunding, Series A, FSA Insured, 5.95%, 9/01/19 ........................................ 1,000,000 1,005,310 Series B, FSA Insured, 5.75%, 9/01/14 ................................................... 800,000 803,872 Medical Center Hospital Authority Revenue, Anticipation Certificates, Columbus Regional Healthcare System, MBIA Insured, 5.50%, 8/01/25 .......................................... 6,000,000 6,283,740 Meriwether County PFAR, Meriwether County Schools Project, MBIA Insured, 5.85%, 10/01/26 ................................................................................. 1,000,000 1,051,970 Monroe County Development Authority PCR, Oglethorpe Power Co., Scherer Project, Refunding, Series A, 6.80%, 1/01/12 ................................................................. 1,500,000 1,670,535 Municipal Electricity Authority Revenue, Project 1, Sub Series E, MBIA Insured, 5.00%, 1/01/25 .................................................................................. 2,315,000 2,436,885 Newnan Water Sewer and Light Commission Public Utilities Revenue, Series B, AMBAC Insured, 4.50%, 1/01/36 ........................................................................... 2,000,000 1,949,680 Newton County Hospital Authority Revenue, Newton Health System Project 1999, AMBAC Insured, 6.10%, 2/01/24 ............................................................ 4,500,000 4,762,035 Newton County IDAR, Georgia Perimeter College Foundation Real Estate Newton, CIFG Insured, 5.00%, 6/01/24 ........................................................................... 3,150,000 3,300,979 Paulding County GO, Courthouse, FGIC Insured, 5.00%, 2/01/32 ............................... 4,000,000 4,225,600 a Paulding County School District GO, 5.00%, 2/01/33 ......................................... 4,000,000 4,203,000 Peach County Development Authority Student Housing Facilities Revenue, Fort Valley State University Foundation Property LLC, AMBAC Insured, 5.00%, 6/01/34 ........................ 3,000,000 3,143,790 Private Colleges and Universities Authority Revenue, Emory University Project, Series A, Pre-Refunded, 5.50%, 11/01/25 ....................... 10,000,000 10,492,400 Mercer University Project, Refunding, Series A, 5.375%, 10/01/29 ........................ 2,000,000 2,046,300 Richmond County Development Authority, Solid Waste Disposal Revenue, International Paper Co. Project, 5.80%, 12/01/20 ............................................................. 1,500,000 1,534,440 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 1,047,280 Rockdale County Water and Sewer Authority Revenue, FSA Insured, 5.00%, 7/01/29 ............................................................. 4,000,000 4,189,120 Series A, MBIA Insured, Pre-Refunded, 5.375%, 7/01/29 ................................... 5,000,000 5,236,500 Savannah EDA Revenue, AASU Compass Point LLC Project, Series D, XLCA Insured, 5.00%, 7/01/29 .................. 3,000,000 3,131,460 Armstrong Center LLC Project, Series A, XLCA Insured, 5.00%, 12/01/30 ................... 1,500,000 1,567,500 South Fulton Municipal Regional Water and Sewer Authority Water Revenue, MBIA Insured, 5.00%, 1/01/33 ........................................................................... 3,500,000 3,623,655 Suwanee GO, MBIA Insured, Pre-Refunded, 5.25%, 1/01/32 ..................................... 3,000,000 3,174,450 Upper Oconee Basin Water Authority Revenue, FGIC Insured, Pre-Refunded, 5.25%, 7/01/27 .............................................. 1,550,000 1,605,459 Refunding, MBIA Insured, 5.00%, 7/01/26 ................................................. 1,000,000 1,049,370 Valdosta and Lowndes County Hospital Authority Revenue, Certificates, South Georgia Medical Center Project, 5.00%, 10/01/33 ......................................................................... 2,000,000 2,037,020 AMBAC Insured, 5.25%, 10/01/27 .......................................................... 3,000,000 3,166,320
Quarterly Statements of Investments | 53 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN GEORGIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) GEORGIA (CONTINUED) Walton County Water and Sewer Authority Revenue, Refunding and Improvement, MBIA Insured, 6.00%, 2/01/21 ........................................................................... $ 750,000 $ 758,798 Ware County Hospital Authority Revenue, Anticipation Certificates, MBIA Insured, 5.25%, 3/01/25 .................................................................................. 3,000,000 3,163,380 --------------- 279,502,750 --------------- U.S. TERRITORIES 1.3% VIRGIN ISLANDS 1.3% Virgin Islands PFAR, senior lien, Fund Loan Notes, Refunding, Series A, 5.40%, 10/01/12 ......................................................................... 850,000 873,077 5.50%, 10/01/22 ......................................................................... 1,200,000 1,230,672 5.625%, 10/01/25 ........................................................................ 1,530,000 1,571,142 --------------- TOTAL U.S. TERRITORIES ..................................................................... 3,674,891 --------------- TOTAL LONG TERM INVESTMENTS (COST $272,471,579) ............................................ 283,177,641 --------------- SHORT TERM INVESTMENTS 2.3% MUNICIPAL BONDS 2.3% GEORGIA 2.3% b Athens-Clarke County Unified Government Development Authority Revenue, University of Georgia Athletic Assn. Project, Daily VRDN and Put, 3.90%, 8/01/33 ...................................................... 1,025,000 1,025,000 Series B, Daily VRDN and Put, 3.90%, 7/01/35 ............................................ 1,600,000 1,600,000 b Atlanta Downtown Development Authority Revenue, Underground Atlanta Project, Refunding, AMBAC Insured, Weekly VRDN and Put, 3.76%, 10/01/16 ...................................... 2,210,000 2,210,000 b Atlanta Water and Wastewater Revenue, Series C, FSA Insured, Daily VRDN and Put, 3.90%, 11/01/41 ................................................................................. 1,240,000 1,240,000 b Hapeville IDAR, Hapeville Hotel Ltd., Daily VRDN and Put, 3.88%, 11/01/15 .................. 600,000 600,000 --------------- TOTAL SHORT TERM INVESTMENTS (COST $6,675,000) ............................................. 6,675,000 --------------- TOTAL INVESTMENTS (COST $279,146,579) 101.5% ............................................... 289,852,641 OTHER ASSETS, LESS LIABILITIES (1.5)% ...................................................... (4,190,298) --------------- NET ASSETS 100.0% .......................................................................... $ 285,662,343 ===============
See Selected Portfolio Abbreviations on page 176. 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. 54 | See Notes to Statements of Investments. | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 98.5% MUNICIPAL BONDS 98.5% ALABAMA 0.2% Camden IDB Exempt Facilities Revenue, Weyerhaeuser, Refunding, Series A, 6.125%, 12/01/24 .......................................................... $ 3,000,000 $ 3,248,880 Series B, 6.375%, 12/01/24 .......................................................... 1,750,000 1,894,007 Oneonta Eastern Health Systems Special Care Facilities Financing Authority GO, 7.75%, 7/01/21 ................................................................................ 10,220,000 10,938,773 --------------- 16,081,660 --------------- ALASKA 0.2% Alaska Industrial Development and Export Authority Power Revenue, Upper Lynn Canal Regional Power, 5.70%, 1/01/12 ...................................................................... 1,700,000 1,705,950 5.80%, 1/01/18 ...................................................................... 1,495,000 1,496,689 5.875%, 1/01/32 ..................................................................... 6,900,000 6,669,195 --------------- 9,871,834 --------------- ARIZONA 4.1% Apache County IDA, IDR, Tucson Electric Power Co. Project, Refunding, Series C, 5.85%, 3/01/26 ......... 16,500,000 16,557,585 PCR, Tucson Electric Power Co. Project, Refunding, Series A, 5.85%, 3/01/28 ......... 53,150,000 53,327,521 PCR, Tucson Electric Power Co. Project, Refunding, Series B, 5.875%, 3/01/33 ........ 33,800,000 33,910,864 Arizona Health Facilities Authority Hospital System Revenue, John C. Lincoln Health Network, Pre-Refunded, 6.375%, 12/01/37 ................................................ 2,500,000 2,814,075 Arizona Health Facilities Authority Revenue, Bethesda Foundation Project, Series A, 6.375%, 8/15/15 .............................. 400,000 407,104 Bethesda Foundation Project, Series A, 6.40%, 8/15/27 ............................... 4,000,000 4,058,200 Catholic Healthcare West, Series A, Pre-Refunded, 6.625%, 7/01/20 ................... 3,940,000 4,274,506 Casa Grande IDA Hospital Revenue, Casa Grande Regional Medical Center, Series A, 7.25%, 12/01/32 ........................................................................ 14,500,000 15,699,005 Coconino County Pollution Control Corp. Revenue, Tucson Electric Power Navajo, Refunding, Series A, 7.125%, 10/01/32 .......................................................... 21,125,000 21,725,584 Series B, 7.00%, 10/01/32 ........................................................... 9,500,000 9,766,380 Downtown Phoenix Hotel Corp. Revenue, Sub Series B, FGIC Insured, 5.00%, 7/01/36 ......... 10,000,000 10,373,700 Maricopa County IDA Health Facilities Revenue, Catholic Healthcare West, Refunding, Series A, 5.50%, 7/01/26 ...................................................................... 7,500,000 7,912,575 ACA Insured, 5.00%, 7/01/16 ......................................................... 6,500,000 6,600,880 Maricopa County IDA Health Facility Revenue, Catholic Healthcare West, Series A, 5.25%, 7/01/32 ........................................................................ 10,000,000 10,396,200 Maricopa County Pollution Control Corp. PCR, Public Service Co. of Colorado, Refunding, Series A, 5.75%, 11/01/22 .............................................................. 9,800,000 9,895,158 Phoenix Civic Improvement Corp. Water System Revenue, junior lien, Refunding, MBIA Insured, 5.00%, 7/01/29 ........................................................... 36,500,000 38,302,005 Pima County IDAR, Tucson Electric Power Co. Project, Series A, 6.10%, 9/01/25 ............ 3,990,000 4,004,803 University Medical Center Corp. Revenue, 5.00%, 7/01/35 .................................. 10,175,000 10,309,513 --------------- 260,335,658 ---------------
Quarterly Statements of Investments | 55 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) ARKANSAS 0.3% Arkansas State Development Finance Authority Industrial Facilities Revenue, Potlatch Corp. Projects, Series A, 7.75%, 8/01/25 ............................................... $ 3,800,000 $ 4,279,902 Baxter County IDR, Aeroquip Corp. Project, Refunding, 5.80%, 10/01/13 .................... 2,400,000 2,622,264 Calhoun County Solid Waste Disposal Revenue, Georgia-Pacific Corp. Project, 6.375%, 11/01/26 ............................................................................... 10,000,000 10,540,500 Warren Solid Waste Disposal Revenue, Potlach Corp. Project, 7.00%, 4/01/12 ............... 3,150,000 3,384,612 --------------- 20,827,278 --------------- CALIFORNIA 17.6% ABAG 1915 Act Special Assessment, Windemere Ranch AD, 1999-1, 6.375%, 9/02/32 ............................................................. 9,735,000 10,363,200 Series 1, 7.45%, 9/02/30 ............................................................ 37,525,000 39,250,399 Adelanto Water Authority Revenue, Subordinated, Water System Acquisition Project, Series A, Pre-Refunded, 7.50%, 9/01/28 ................................................. 21,325,000 22,708,566 Alameda County MFHR, Claremont House Project, Refunding, Series A, 8.00%, 12/01/23 ............................................................................... 11,050,000 11,501,171 Avenal PFAR, Pre-Refunded, 7.00%, 9/02/10 ...................................................................... 685,000 701,008 7.25%, 9/02/27 ...................................................................... 3,665,000 3,769,233 Beaumont Financing Authority Local Agency Revenue, Improvement Area No. 19C, Series A, 5.35%, 9/01/36 ......................................................................... 3,680,000 3,717,058 Beaumont PFAR, Sewer Enterprise Project, Series A, Pre-Refunded, 6.90%, 9/01/23 .......... 4,270,000 4,974,977 Calabasas Special Tax, CFD No. 01-1, Refunding, 6.25%, 9/01/31 ........................... 5,780,000 6,430,134 California County Tobacco Securitization Agency Revenue, Asset-Backed, Alameda County, 5.875%, 6/01/35 ........................................................................ 3,700,000 3,925,071 California Educational Facilities Authority Revenue, Pooled College and University Financing, Refunding, Series B, 6.125%, 6/01/09 ........................................ 30,000 30,058 California Health Facilities Financing Authority Revenue, Marshall Medical Center, Series A, California Mortgage Insured, 5.00%, 11/01/24 ............................................................................ 2,295,000 2,370,873 11/01/29 ............................................................................ 2,220,000 2,286,334 11/01/33 ............................................................................ 3,130,000 3,219,549 California HFAR, Home Mortgage, Series K, 4.70%, 8/01/31 ................................. 20,000,000 19,714,600 California Infrastructure and Economic Development Bank Revenue, Department of Social Services Administration Building, AMBAC Insured, 5.00%, 12/01/30 ............................................................................ 10,300,000 11,147,690 12/01/35 ............................................................................ 14,110,000 15,239,364 California State GO, Pre-Refunded, 5.25%, 4/01/30 ........................................................ 2,450,000 2,608,393 Pre-Refunded, 5.25%, 4/01/32 ........................................................ 2,460,000 2,619,039 Pre-Refunded, 5.00%, 2/01/33 ........................................................ 40,640,000 43,383,606 Refunding, 5.25%, 4/01/30 ........................................................... 50,000 52,379 Refunding, 5.25%, 4/01/32 ........................................................... 40,000 41,796 Various Purpose, 5.125%, 11/01/24 ................................................... 18,935,000 19,865,655 Various Purpose, 5.00%, 8/01/33 ..................................................... 25,000,000 25,908,000 California Statewide CDA Revenue, Elder Care Alliance, Series A, Pre-Refunded, 8.25%, 11/15/32 ........................ 13,090,000 16,092,453 Eskaton Village Grass Valley, Pre-Refunded, 8.25%, 11/15/31 ......................... 3,045,000 3,473,310
56 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) CALIFORNIA (CONTINUED) California Statewide CDA Revenue, (continued) John F. Kennedy University, 6.75%, 10/01/33 ......................................... $ 8,000,000 $ 8,700,480 Monterey Institute International, 5.50%, 7/01/31 .................................... 13,240,000 13,471,568 Prospect Sierra School, Pre-Refunded, 6.75%, 9/01/32 ................................ 6,545,000 7,221,164 Sutter Health, Refunding, Series A, 5.00%, 11/15/43 ................................. 25,000,000 25,534,500 Chabot-Las Positas Community College District GO, Capital Appreciation Bonds, Series C, AMBAC Insured, zero cpn., 8/01/33 ............................................................................. 21,015,000 5,825,358 8/01/34 ............................................................................. 10,000,000 2,630,100 8/01/43 ............................................................................. 31,515,000 5,193,672 8/01/45 ............................................................................. 34,035,000 5,062,706 Chino CFD Special Tax, No. 03-3, Improvement Area 2, 5.00%, 9/01/36 ...................... 2,215,000 2,227,293 Chula Vista CFD Special Tax, No. 07-I, Otay Ranch Village Eleven, 5.875%, 9/01/34 ................................ 3,200,000 3,354,176 No. 13-I, Otay Ranch Village Seven, 5.35%, 9/01/36 .................................. 2,675,000 2,723,765 No. 99-1, Otay Ranch Spa One, Pre-Refunded, 6.10%, 9/01/31 .......................... 4,890,000 5,320,662 Corona COP, Corona Community Hospital Project, Pre-Refunded, 9.425%, 9/01/20 ............. 8,820,000 10,153,143 El Dorado County CFD Special Tax, Promontory Specific, Series No. 2001-1, 6.30%, 9/01/31 ................................................................................ 3,500,000 3,722,775 Elk Grove Special Tax, East Franklin Community No. 1-A, Pre-Refunded, 5.80%, 8/01/25 ...................................................................... 3,745,000 3,906,372 6.00%, 8/01/33 ...................................................................... 5,435,000 5,670,825 Emeryville RDA, MFHR, Emery Bay Apartments II, Refunding, Series A, 5.85%, 10/01/28 ................................................ 13,105,000 13,379,550 sub. lien, Refunding, Series B, 6.35%, 10/01/28 ..................................... 3,105,000 3,169,118 sub. lien, Refunding, Series C, 7.875%, 10/01/28 .................................... 1,840,000 1,878,382 Foothill/Eastern Corridor Agency Toll Road Revenue, Capital Appreciation, Refunding, zero cpn., 1/15/22 .................................................................. 49,115,000 21,146,463 zero cpn., 1/15/31 .................................................................. 4,000,000 1,011,320 zero cpn., 1/15/34 .................................................................. 4,500,000 946,665 zero cpn., 1/15/36 .................................................................. 4,000,000 744,080 zero cpn. to 7/15/09, 5.85% thereafter, 1/15/23 ..................................... 35,000,000 32,914,700 Fullerton CFD No. 1 Special Tax, Amerige Heights, 6.20%, 9/01/32 ......................... 3,500,000 3,671,430 Golden State Tobacco Securitization Corp. Tobacco Settlement Revenue, Asset-Backed, Series A-3, Pre-Refunded, 7.875%, 6/01/42 ............................. 10,000,000 12,104,800 Enhanced, Asset-Backed, Refunding, Series A, 5.00%, 6/01/45 ......................... 30,750,000 31,543,657 Enhanced, Asset-Backed, Series A-3, Pre-Refunded, 5.50%, 6/01/33 .................... 20,000,000 21,694,400 Enhanced, Asset-Backed, Series A-3, Pre-Refunded, 5.50%, 6/01/43 .................... 20,000,000 21,694,400 Enhanced, Asset-Backed, Series B, Pre-Refunded, 5.625%, 6/01/38 ..................... 21,000,000 22,918,140 Series 2003 A-1, Pre-Refunded, 6.75%, 6/01/39 ....................................... 4,735,000 5,449,559 Lake Elsinore 1915 Act Special Assessment, AD No. 93-1, Limited Obligation, Refunding, 7.00%, 9/02/30 ......................................................................... 8,065,000 8,666,246 Lee Lake Water District CFD No. 3 Special Tax, Retreat, 5.95%, 9/01/34 ................... 5,000,000 5,265,350 Livermore CFD Special Tax, No. 06-1, Shea Properties, 5.40%, 9/01/36 ..................... 6,595,000 6,685,417 Los Angeles MFR, Refunding, Series J-1B, 7.125%, 1/01/24 ........................................................ 200,000 200,318 Series J-1C, 7.125%, 1/01/24 ........................................................ 540,000 540,859 Series J-2B, 8.50%, 1/01/24 ......................................................... 970,000 955,528 a Series J-2C, 8.50%, 1/01/24 ......................................................... 2,560,000 2,521,805
Quarterly Statements of Investments | 57 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) CALIFORNIA (CONTINUED) Los Angeles Regional Airports Improvement Corp. Lease Revenue, b Facilities Sub-Lease, International Airport, Refunding, 6.35%, 11/01/25 ............. $ 12,000,000 $ 11,986,200 Facilities Sub-Lease, Los Angeles International, Series A-1, 7.125%, 12/01/24 ....... 2,000,000 2,228,720 Facilities Sub-Lease, Los Angeles International, Series A-2, 7.50%, 12/01/24 ........ 10,000,000 11,321,500 Refunding, Series C, 7.00%, 12/01/12 ................................................ 6,000,000 6,421,320 Refunding, Series C, 7.50%, 12/01/24 ................................................ 30,000,000 33,964,500 b United Airlines, Los Angeles International, Refunding, 6.875%, 11/15/12 ............. 9,500,000 9,180,610 Los Angeles Wastewater System Revenue, Refunding, Series A, MBIA Insured, 5.00%, 6/01/30 ................................................................................ 7,530,000 7,893,548 Murrieta 1915 Act Special Tax, CFD No. 2000-1, 6.375%, 9/01/30 ........................... 4,000,000 4,271,000 Poway USD Special Tax, CFD No. 10, Area A, 6.10%, 9/01/31 .................................................. 1,995,000 2,060,336 CFD No. 11, Area A, 5.375%, 9/01/28 ................................................. 2,965,000 3,030,082 CFD No. 11, Area A, 5.375%, 9/01/34 ................................................. 2,235,000 2,273,286 CFD No. 14, Del Sur, 5.25%, 9/01/36 ................................................. 7,500,000 7,587,525 Rocklin Special Tax, CFD No. 10, Whitney, 5.00%, 9/01/35 ................................. 7,335,000 7,279,547 Romoland School District Special Tax, CFD 1, Improvement Area 1, 5.35%, 9/01/28 .................................................. 7,015,000 7,159,579 Improvement Area 1, 5.40%, 9/01/36 .................................................. 6,175,000 6,302,020 Improvement Area 2, 5.35%, 9/01/38 .................................................. 7,900,000 8,020,238 San Bernardino County Finance Authority Revenue, Public Improvement, AD, Refunding, Series A, 7.00%, 9/02/17 ............................................................... 595,000 598,802 San Francisco City and County RDA Lease Revenue, George R. Moscone Center, zero cpn., 7/01/09 ............................................................................. 3,750,000 3,452,437 7/01/10 ............................................................................. 4,500,000 3,980,880 7/01/12 ............................................................................. 4,500,000 3,650,040 7/01/13 ............................................................................. 4,250,000 3,300,040 7/01/14 ............................................................................. 2,250,000 1,671,143 San Francisco Uptown Parking Corp. Parking Revenue, Union Square, MBIA Insured, 6.00%, 7/01/31 ................................................................................ 8,920,000 9,711,115 San Joaquin Hills Transportation Corridor Agency Toll Road Revenue, Capital Appreciation, Refunding, Series A, 5.60%, 1/15/16 ........................... 22,500,000 23,886,450 Capital Appreciation, Refunding, Series A, 5.65%, 1/15/17 ........................... 20,000,000 21,244,400 Capital Appreciation, Refunding, Series A, 5.75%, 1/15/23 ........................... 20,000,000 21,152,600 Capital Appreciation, Refunding, Series A, 5.75%, 1/15/24 ........................... 20,000,000 21,080,800 junior lien, ETM, zero cpn., 1/01/08 ................................................ 10,400,000 10,186,384 junior lien, ETM, zero cpn., 1/01/09 ................................................ 21,800,000 20,572,660 junior lien, ETM, zero cpn., 1/01/10 ................................................ 15,000,000 13,598,550 junior lien, ETM, zero cpn., 1/01/12 ................................................ 30,100,000 25,170,824 junior lien, ETM, zero cpn., 1/01/24 ................................................ 52,700,000 25,085,200 junior lien, ETM, zero cpn., 1/01/25 ................................................ 45,200,000 20,501,816 junior lien, ETM, zero cpn., 1/01/26 ................................................ 131,900,000 57,091,596 junior lien, ETM, zero cpn., 1/01/27 ................................................ 139,100,000 57,224,349 senior lien, 5.00%, 1/01/33 ......................................................... 11,930,000 11,930,239 Saugus USD Special Tax, 6.00%, 9/01/33 ................................................... 3,150,000 3,309,863 Seal Beach CFD No. 05-01 Special Tax, Pacific Gateway Business Center, 5.30%, 9/01/36 ................................................................................ 2,000,000 2,029,020
58 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) CALIFORNIA (CONTINUED) Stockton 1915 Act Special Assessment, Limited Obligation, Mosher AD 02, 6.30%, 9/02/33 ................................................................................ $ 6,000,000 $ 6,214,320 Stockton CFD Special Tax, No. 2001-1, Spanos Park West, Pre-Refunded, 6.375%, 9/01/32 ................................................................................ 4,100,000 4,660,060 Upland CFD Special Tax, 2003-2 San Antonio Improvement, Series 1-A, 6.00%, 9/01/34 ....... 6,520,000 6,854,476 West Sacramento Special Tax, CFD No. 16, Pre-Refunded, 6.00%, 9/01/33 .................... 3,000,000 3,308,340 --------------- 1,117,661,077 --------------- COLORADO 3.7% Colorado Health Facilities Authority Revenue, Adventist Health-Sunbelt, Refunding, Series D, 5.25%, 11/15/35 ...................... 20,000,000 20,784,200 Volunteers of America Care Facilities, Improvement, Series A, Pre-Refunded, 5.75%, 7/01/20 ........................................................................... 3,000,000 3,120,690 Volunteers of America Care Facilities, Improvement, Series A, Pre-Refunded, 5.875%, 7/01/28 ........................................................................... 2,990,000 3,114,175 Volunteers of America Care Facilities, Refunding and Improvement, Series A, ETM, 5.45%, 7/01/08 ........................................................................... 520,000 523,822 Denver City and County Airport Revenue, Refunding, Series B, 5.50%, 11/15/33 ................................................ 20,000,000 21,027,600 Series D, 7.75%, 11/15/13 ........................................................... 500,000 550,960 Denver City and County Special Facilities Airport Revenue, United Airlines Inc. Project, Series A, 6.875%, 10/01/32 ............................................................. 11,760,000 12,099,041 Denver Convention Center Hotel Authority Revenue, Refunding, Senior, XLCA Insured, 5.00%, 12/01/35 ............................................................................... 15,000,000 15,546,000 Denver Health and Hospital Authority Healthcare Revenue, Series A, Pre-Refunded, 6.25%, 12/01/33 ............................................................................... 4,000,000 4,571,800 E-470 Public Highway Authority Revenue, Capital Appreciation, Refunding, Series B, MBIA Insured, zero cpn., 9/01/37 ............................... 15,720,000 3,679,895 Refunding, Series B, MBIA Insured, zero cpn., 9/01/38 ............................... 20,000,000 4,439,600 Refunding, Series B, MBIA Insured, zero cpn., 9/01/39 ............................... 30,000,000 6,321,600 Series A, MBIA Insured, zero cpn., 9/01/28 .......................................... 15,000,000 5,697,600 Series B, MBIA Insured, zero cpn., 9/01/29 .......................................... 10,000,000 3,230,600 Series B, MBIA Insured, zero cpn., 9/01/30 .......................................... 17,300,000 5,271,656 Series B, MBIA Insured, zero cpn., 9/01/31 .......................................... 10,000,000 2,869,900 Eagle County Airport Terminal Corp. Revenue, Series A, 7.00%, 5/01/21 ...................................................................... 735,000 795,299 7.125%, 5/01/31 ..................................................................... 1,215,000 1,316,416 Eagle County Sports and Housing Facilities Revenue, Vail Associate Project, Refunding, 6.95%, 8/01/19 ......................................................................... 41,200,000 45,368,204 Littleton MFHR, Riverpoint, Refunding, Series C, 8.00%, 12/01/29 ......................... 2,755,000 2,898,150 McKay Landing Metropolitan District No. 002 GO, Limited Tax, Pre-Refunded, 7.50%, 12/01/19 .......................................... 2,990,000 3,319,019 Subordinated, Series A, Pre-Refunded, 7.50%, 12/01/34 ............................... 2,000,000 2,234,800 Regional Transportation District Sales Tax Revenue, Fastracks Project, Series A, AMBAC Insured, Pre-Refunded, 5.00%, 11/01/36 ........................................... 40,000,000 43,258,400 Saddle Rock South Metropolitan District No. 2 GO, Limited Mill Levy Obligation, Pre-Refunded, 7.20%, 12/01/19 .......................................................... 275,000 299,604 Saddle Rock South Metropolitan District No. 3 GO, Limited Mill Levy Obligation, Pre-Refunded, 7.35%, 12/01/19 .......................................................... 3,050,000 3,334,687
Quarterly Statements of Investments | 59 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) COLORADO (CONTINUED) Superior Metropolitan District No. 1 Special Revenue, Refunding, AMBAC Insured, 5.00%, 12/01/28 ............................................................................... $ 7,640,000 $ 8,022,535 University of Colorado Hospital Authority Revenue, Series A, Pre-Refunded, 5.60%, 11/15/31 ............................................................................... 9,000,000 9,584,550 a,c Villages Castle Rock Metropolitan District No. 4 Revenue, Refunding, 8.50%, 6/01/31 ..... 3,000,000 3,037,410 --------------- 236,318,213 --------------- CONNECTICUT 1.6% Connecticut State Development Authority PCR, Connecticut Light and Water, Refunding, Series A, 5.85%, 9/01/28 .................... 53,825,000 55,991,994 Western Massachusetts Electric Co., Refunding, Series A, 5.85%, 9/01/28 ............. 12,500,000 13,003,250 Connecticut State Development Authority Water Facility Revenue, Bridgeport Hydraulic Co. Project, 6.15%, 4/01/35 ................................................................ 3,000,000 3,075,570 Connecticut State Health and Educational Facilities Authority Revenue, Sacred Heart University, Series C, 6.50%, 7/01/16 ................................... 420,000 424,767 St. Mary's Hospital, Refunding, Series E, 5.50%, 7/01/20 ............................ 5,650,000 5,404,677 Windham Community Memorial Hospital, Series C, 6.00%, 7/01/11 ....................... 1,000,000 1,005,730 Connecticut State HFAR, Housing Mortgage Finance Program, Refunding, Series C-1, 6.30%, 11/15/17 ............................................................................... 16,060,000 16,323,866 Greater New Haven Water Pollution Control Authority Regional Water Revenue, Refunding, Series A, MBIA Insured, 5.00%, 8/15/35 ................................................. 6,735,000 7,051,141 --------------- 102,280,995 --------------- DISTRICT OF COLUMBIA 1.6% District of Columbia Ballpark Revenue, Series B-1, FGIC Insured, 5.00%, 2/01/35 .......... 18,000,000 18,664,380 District of Columbia GO, Refunding, Series A, 6.00%, 6/01/07 ................................................. 1,535,000 1,535,000 Series A, ETM, 6.00%, 6/01/07 ....................................................... 280,000 280,000 District of Columbia Hospital Revenue, Medlantic Healthcare Group, Series A, MBIA Insured, ETM, 5.875%, 8/15/19 ................................................................... 8,850,000 8,976,555 District of Columbia Revenue, Gains-Georgetown University, Capital Appreciation, AMBAC Insured, zero cpn. to 3/31/18, 5.00% thereafter, 4/01/36 ......................................................... 27,105,000 16,442,977 Methodist Home Issue, 6.00%, 1/01/29 ................................................ 4,750,000 4,804,388 District of Columbia Tobacco Settlement Financing Corp. Revenue, Capital Appreciation, Asset-Backed Bonds, Series A, zero cpn., 6/15/46 .............. 175,000,000 16,849,000 Capital Appreciation, Asset-Backed Bonds, Series B, zero cpn., 6/15/46 .............. 66,000,000 6,073,980 Refunding, Asset-Backed Bonds, 6.50%, 5/15/33 ....................................... 22,000,000 26,224,440 --------------- 99,850,720 --------------- FLORIDA 7.9% Bartram Springs CDD Special Assessment, Refunding, 4.75%, 5/01/34 ........................ 4,800,000 4,562,064 Beacon Tradeport CDD Special Assessment, Commercial Project, Series A, Pre-Refunded, 6.00%, 5/01/16 ...................................................................... 22,565,000 23,818,260 6.20%, 5/01/22 ...................................................................... 23,590,000 25,581,468 Brighton Lakes CDD Special Assessment, Series B, 7.625%, 5/01/31 ......................... 3,040,000 3,225,683 Brooks of Bonita Springs CDD Capital Improvement Revenue, 6.85%, 5/01/31 ................. 1,375,000 1,447,504 Brooks of Bonita Springs II CDD Capital Improvement Revenue, Series A, Pre-Refunded, 7.00%, 5/01/31 ......................................................................... 11,780,000 12,338,490
60 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) FLORIDA (CONTINUED) Capital Region CDD Capital Improvement Revenue, Series A-2, 6.85%, 5/01/31 ............... $ 2,285,000 $ 2,468,028 Championsgate CDD Capital Improvement Revenue, Series A, 6.25%, 5/01/20 .................. 2,445,000 2,488,228 Citrus County Hospital Board Revenue, Citrus Memorial Hospital, Refunding, 6.375%, 8/15/32 ................................................................................ 10,550,000 11,336,819 Creekside CDD Special Assessment, 5.20%, 5/01/38 ......................................... 1,400,000 1,382,318 East Homestead CDD Special Assessment Revenue, 5.45%, 5/01/36 ............................ 1,425,000 1,431,911 Falcon Trace CDD Special Assessment, 6.00%, 5/01/20 ...................................... 3,690,000 3,779,851 Fleming Plantation CDD Special Assessment, Series B, Pre-Refunded, 7.375%, 5/01/31 ....... 9,900,000 10,944,549 Florida State Board of Education Capital Outlay GO, Public Education, Refunding, Series D, 6.00%, 6/01/23 ............................................................... 5,000,000 6,007,800 Gateway Services District Water Management Benefit Tax Revenue, Second Assessment Area, Phase One, 8.00%, 5/01/20 .............................................................. 3,580,000 3,617,805 Groves CDD Special Assessment Revenue, Series A, 7.75%, 5/01/32 .......................... 1,725,000 1,742,819 Halifax Hospital Medical Center Hospital Revenue, Refunding and Improvement, Series A, 5.375%, 6/01/46 ................................ 18,000,000 18,589,140 Series A, Pre-Refunded, 7.25%, 10/01/24 ............................................. 4,700,000 5,268,512 Series A, Pre-Refunded, 7.25%, 10/01/29 ............................................. 1,400,000 1,569,344 Hawk's Point CDD Special Assessment, Hawk's Point Community Development, Series A, 5.30%, 5/01/39 ......................................................................... 1,450,000 1,423,654 Heritage Harbor CDD Special Assessment Revenue, Series A, 6.70%, 5/01/19 ................. 1,400,000 1,415,778 Hillsborough County IDAR, Refunding, Series B, 5.25%, 10/01/28 ............................................................................ 1,500,000 1,541,265 10/01/34 ............................................................................ 7,250,000 7,389,925 Indian Trace CDD, GO, Water Management Special Benefit, Refunding, Sub Series B, 8.25%, 5/01/11 ................................................................................ 9,115,000 9,542,858 Indian Trace CDD Special Assessment, Isles at Weston Project, 5.50%, 5/01/33 ............. 2,900,000 2,925,346 Indian Trail ID, GO, Water Control and Improvement, Unit Development 18, ETM, 6.875%, 8/01/10 ................................................................ 590,000 614,751 Pre-Refunded, 7.00%, 8/01/20 ........................................................ 2,445,000 2,656,346 Pre-Refunded, 7.25%, 8/01/31 ........................................................ 5,725,000 6,255,650 Indigo CDD Capital Improvement Revenue, Refunding, Series A, 7.00%, 5/01/31 ............................................................ 910,000 927,445 Series C, 7.00%, 5/01/30 ............................................................ 4,710,000 4,800,291 Islands at Doral CDD Special Assessment, 6.125%, 5/01/24 ................................. 1,820,000 1,918,244 Lake Ashton CDD Revenue, Series A, 7.40%, 11/15/32 ....................................... 1,595,000 1,711,387 Lakeland Retirement Community Revenue, first mortgage, Carpenters Home, Refunding, Series A, 6.75%, 1/01/19 ............................................................... 13,720,000 14,221,878 Lakewood Ranch CDD No. 3 Special Assessment Revenue, 7.625%, 5/01/18 ..................... 415,000 422,661 Lee County Transportation Facilities Revenue, Sanibel Bridges and Causeway, Series B, CIFG Insured, 5.00%, 10/01/30 .......................................................... 11,505,000 11,932,296 Mediterra North CDD Capital Improvement Revenue, Series A, 6.80%, 5/01/31 ................ 7,915,000 8,505,776 Mediterra South CDD Capital Improvement Revenue, 6.85%, 5/01/31 ...................................................................... 2,355,000 2,543,635 Series B, 6.95%, 5/01/31 ............................................................ 7,190,000 7,460,128 Mediterranea CDD Special Assessment, Series A, 5.60%, 5/01/37 ............................ 1,550,000 1,580,597 Miami-Dade County Public Facilities Revenue, Jackson Health System, Series A, MBIA Insured, 5.00%, 6/01/32 ........................................................... 14,000,000 14,455,840
Quarterly Statements of Investments | 61 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) FLORIDA (CONTINUED) Midtown Miami Community Development Special Assessment Revenue, Series A, 6.25%, 5/01/37 ............................................................ $ 7,500,000 $ 8,080,350 Series B, 6.50%, 5/01/37 ............................................................ 4,000,000 4,398,920 Mount Dora Country Club CDD Special Assessment Revenue, 7.75%, 5/01/13 ................... 420,000 422,785 North Springs ID Special Assessment Revenue, Parkland Isles Project, Series A, 7.00%, 5/01/19 ................................................................................ 670,000 679,501 Northern Palm Beach County ID Revenue, Water Control and Improvement, Unit of Development No. 43, 6.10%, 8/01/21 ...................................................................... 625,000 649,531 Pre-Refunded, 6.10%, 8/01/21 ........................................................ 1,960,000 2,138,948 Northern Palm Beach County ID Special Assessment, Water Control and Improvement Bonds, Unit of Development No. 46, Series A, 5.35%, 8/01/41 ................................... 800,000 795,088 Northwood CDD Special Assessment Revenue, Series B, 7.60%, 5/01/17 ....................... 1,085,000 1,094,700 Oakstead CDD Revenue, Capital Improvement, Series A, Pre-Refunded, 7.20%, 5/01/32 ........ 3,230,000 3,494,505 Orange County Health Facilities Authority Revenue, Hospital, Adventist Health System Inc., Pre-Refunded, 5.625%, 11/15/32 ........................ 10,000,000 10,893,900 Orlando Regional Healthcare, Pre-Refunded, 5.75%, 12/01/32 .......................... 15,000,000 16,359,300 Orange County Tourist Development Tax Revenue, Refunding, AMBAC Insured, 5.00%, 10/01/29 ............................................................................... 13,925,000 14,520,851 Palm Glades CDD Revenue, Special Assessment, Series A, 5.30%, 5/01/36 .................... 1,300,000 1,308,190 Parklands West CDD Revenue, Special Assessment, Series A, 6.90%, 5/01/32 ................. 2,780,000 3,002,428 Parkway Center CDD Special Assessment, Refunding, Series A, 8.25%, 5/01/31 ............... 1,350,314 1,458,312 Pelican Marsh CDD Special Assessment Revenue, Series A, 7.10%, 5/01/20 ............................................................ 3,160,000 3,370,677 Series A, 7.20%, 5/01/31 ............................................................ 6,275,000 6,692,538 Series B, 6.90%, 5/01/11 ............................................................ 1,215,000 1,245,278 Piney-Z CDD Capital Improvement Revenue, Series A, 7.25%, 5/01/19 ........................ 625,000 641,881 Poinciana CDD Special Assessment, Series A, 7.125%, 5/01/31 .............................. 10,050,000 10,635,412 Portico CDD Capital Improvement Revenue, 5.45%, 5/01/37 .................................. 3,000,000 3,033,570 Portofino Landings CDD Special Assessment, Series A, 5.40%, 5/01/38 ...................... 2,795,000 2,796,956 Reserve CDD Capital Improvement Revenue, Stormwater Management, 8.25%, 5/01/14 ........... 1,625,000 1,637,285 Reserve CDD No. 2 Capital Improvement Revenue, 7.125%, 5/01/30 ........................... 3,510,000 3,617,406 Reserve CDD Utility Revenue, Stormwater Management, Refunding, Series A, 6.625%, 12/01/22 ............................................................................... 3,735,000 3,875,137 River Place St. Lucie CDD Special Assessment Revenue, Series A, 7.625%, 5/01/21 ........................................................... 1,090,000 1,183,435 Series A, 7.625%, 5/01/30 ........................................................... 1,590,000 1,721,239 Series B, 7.25%, 5/01/10 ............................................................ 970,000 977,576 Riverwood CDD Special Assessment Revenue, Series A, 7.75%, 5/01/14 ....................... 575,000 603,100 Sampson Creek CDD Capital Improvement Revenue, Series A, Pre-Refunded, 6.95%, 5/01/31 ................................................................................ 2,730,000 2,937,098 Somerset County Revenue, Somerset CDD, 5.30%, 5/01/37 .................................... 8,170,000 8,192,549 South Broward Hospital District Revenue, South Broward Hospital District, Refunding, 4.75%, 5/01/32 ......................................................................... 20,000,000 19,941,200 South Miami Health Facilities Authority Hospital Revenue, Baptist Health South Florida Group, 5.00%, 8/15/37 .................................................................. 34,860,000 35,470,747 South-Dade Venture CDD Special Assessment Revenue, 6.00%, 5/01/24 ........................ 2,645,000 2,777,091
62 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) FLORIDA (CONTINUED) St. Lucie West Services District Capital Improvement Revenue, Cascades Project, 6.10%, 5/01/18 ................................................................................ $ 1,870,000 $ 1,907,662 St. Lucie West Services District Special Assessment Revenue, Port St. Lucie, Water Management Benefit, Refunding, Series B, 6.00%, 5/01/09 ...................................................................... 355,000 355,621 6.25%, 5/01/25 ...................................................................... 5,080,000 5,267,858 Stonegate CDD Special Assessment Revenue, 6.00%, 5/01/24 ................................. 2,095,000 2,184,477 Stoneybrook West CDD Special Assessment Revenue, Series A, 7.00%, 5/01/32 ................ 2,990,000 3,186,443 Tara CDD No. 1 Capital Improvement Revenue, Series A, 7.15%, 5/01/31 ..................... 1,275,000 1,368,496 University of Central Florida Assn. Inc. COP, Series A, FGIC Insured, 5.00%, 10/01/35 .... 9,190,000 9,466,803 Venetian CDD Capital Improvement Revenue, Series A, 6.75%, 5/01/34 ....................... 8,415,000 9,172,518 Verandah East CDD Revenue, Capital Improvement, Series A, 5.40%, 5/01/37 ................. 2,000,000 2,023,860 Verandah West CDD Revenue, Series A, 6.625%, 5/01/33 ..................................... 8,440,000 9,007,843 Village CDD No. 4 Special Assessment Revenue, 7.20%, 5/01/31 ............................. 6,465,000 6,920,330 Village Center CDD Recreational Revenue, Sub Series B, 6.25%, 1/01/13 ........................................................ 5,045,000 5,217,085 Sub Series B, 8.25%, 1/01/17 ........................................................ 1,830,000 1,870,608 Sub Series C, 7.375%, 1/01/19 ....................................................... 2,185,000 2,259,814 Vista Lake CDD Capital Improvement Revenue, Series A, 7.20%, 5/01/32 ..................... 2,645,000 2,774,288 Waterchase CDD Capital Improvement Revenue, Series A, 6.70%, 5/01/32 ..................... 2,825,000 3,078,374 Waterlefe CDD Capital Improvement Revenue, Series A, 6.95%, 5/01/31 ...................... 1,150,000 1,246,163 Waters Edge CDD Capital Improvement Revenue, 5.30%, 5/01/36 .............................. 1,900,000 1,905,244 Waterstone CDD Capital Improvement Revenue, Series B, 5.50%, 5/01/18 ..................... 4,600,000 4,588,546 Westchase East CDD Capital Improvement Revenue, 7.10%, 5/01/21 ........................... 1,350,000 1,438,533 Winter Garden Village at Fowler Groves CDD Special Tax, 5.65%, 5/01/37 ................... 2,000,000 2,082,200 --------------- 503,816,594 --------------- GEORGIA 2.5% Atlanta Airport Passenger Facility Charge Revenue, General, sub. lien, Refunding, Series C, FSA Insured, 5.00%, 1/01/33 .................................... 36,000,000 37,255,320 Series J, FSA Insured, 5.00%, 1/01/29 ............................................... 16,445,000 17,084,875 Atlanta Tax Allocation, Princeton Lakes Project, 5.50%, 1/01/31 .......................... 1,235,000 1,253,488 Atlanta Water and Wastewater Revenue, FSA Insured, 5.00%, 11/01/34 ....................... 33,890,000 35,379,466 Baldwin County Hospital Authority Revenue, Oconee Regional Medical Center, 5.375%, 12/01/28 ............................................................................... 1,470,000 1,467,207 Floyd County Development Authority Environmental Improvement Revenue, Temple-Inland Inc., Refunding, 5.70%, 12/01/15 ............................................................. 1,575,000 1,657,073 Forsyth County Hospital Authority Revenue, Anticipation Certificate, Georgia Baptist Health Care System Project, ETM, 6.25%, 10/01/18 ..................................................................... 6,000,000 6,759,420 6.375%, 10/01/28 .................................................................... 8,000,000 9,763,600 Fulton County Residential Care Revenue, Lenbrook Project, Series A, 5.00%, 7/01/27 ....... 5,000,000 4,987,250 Gainesville RDA Educational Facilities Revenue, Riverside Military Academy, Refunding, 5.125%, 3/01/37 ........................................................................ 3,500,000 3,554,705 Henry County Hospital Authority Revenue, Henry Medical Center Inc. Project, Refunding, MBIA Insured, 5.00%, 7/01/34 ........................................................... 26,145,000 27,281,000
Quarterly Statements of Investments | 63 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) GEORGIA (CONTINUED) Main Street Natural Gas Inc. Gas Revenue, Series B, 5.00%, 3/15/22 ....................... $ 6,000,000 $ 6,314,220 McDuffie County Development Authority Waste Disposal Revenue, Temple-Inland Forest Products, 6.95%, 12/01/23 .............................................................. 5,120,000 5,650,534 --------------- 158,408,158 --------------- HAWAII 1.1% Honolulu City and County GO, Series A, MBIA Insured, 5.00%, 7/01/26 ............................................................................... 12,020,000 12,596,720 7/01/27 ............................................................................... 12,640,000 13,228,897 Honolulu City and County Wastewater System Revenue, First Bond Resolution, Senior Series A, MBIA Insured, 5.00%, 7/01/31 .................. 20,000,000 20,965,200 Senior Series A, FGIC Insured, 5.00%, 7/01/30 ......................................... 20,425,000 21,334,117 --------------- 68,124,934 --------------- IDAHO 0.3% Nez Perce County PCR, Potlatch 84, 7.00%, 12/01/14 .......................................................... 2,500,000 2,770,450 Potlatch Corp. Project, Refunding, 6.00%, 10/01/24 .................................... 17,500,000 17,735,025 --------------- 20,505,475 --------------- ILLINOIS 2.7% Antioch Village Special Service Area No. 1 Special Tax, Deercrest Project, 6.625%, 3/01/33 ................................................................................ 3,329,000 3,512,761 Antioch Village Special Service Area No. 2 Special Tax, Clublands Project, 6.625%, 3/01/33 ................................................................................ 5,491,000 5,794,103 Bolingbrook Special Service Area No. 1 Special Tax, Augusta Village Project, Pre-Refunded, 6.25%, 3/01/32 ........................................................................ 3,655,000 4,080,588 6.75%, 3/01/32 ........................................................................ 5,415,000 6,059,764 Bolingbrook Special Service Area No. 2 Special Tax, Bloomfield West Project, Series A, Pre-Refunded, 6.625%, 3/01/31 ....................................................................... 4,348,000 4,768,973 7.00%, 3/01/31 ........................................................................ 4,796,000 5,321,402 Bolingbrook Special Service Area No. 3 Special Tax, Lakewood Ridge Project, Pre-Refunded, 7.05%, 3/01/31 ........................................................................ 5,853,000 6,591,707 Bryant PCR, Central Illinois Light Co. Project, Refunding, MBIA Insured, 5.90%, 8/01/23 .. 11,000,000 11,019,580 Cary Special Tax, Refunding, Radian Insured, 5.00%, 3/01/30 ............................................. 3,160,000 3,238,463 Special Service Area No. 1, Cambria Project, Series A, Pre-Refunded, 7.625%, 3/01/30 ............................................................................. 2,869,000 3,197,816 Special Service Area No. 2, Foxford Hills Project, Pre-Refunded, 7.50%, 3/01/30 ....... 5,319,000 5,839,145 Gilberts Special Service Area No. 9 Special Tax, Big Timber Project, Pre-Refunded, 7.75%, 3/01/27 ................................................................................ 6,000,000 6,918,000 Hampshire Special Service Area No. 14 Special Tax, Lakewood Crossing Subdivision, 5.95%, 3/01/36 ................................................................................ 7,785,000 7,913,920 Illinois Finance Authority Revenue, Lutheran Hillside Village, Refunding, 5.25%, 2/01/37 .................................. 5,000,000 5,148,550 Northwestern University, 5.00%, 12/01/42 .............................................. 12,000,000 12,419,400
64 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) ILLINOIS (CONTINUED) Illinois Health Facilities Authority Revenue, Sarah Bush Lincoln Health Center, Refunding, Series B, 6.00%, 2/15/11 ................. $ 2,725,000 $ 2,788,983 Thorek Hospital and Medical Center, Refunding, 5.375%, 8/15/28 ........................ 8,595,000 8,655,595 Metropolitan Pier and Exposition Authority Hospitality Facilities Revenue, McCormick Place Convention Center, ETM, 7.00%, 7/01/26 ................................................. 7,500,000 9,795,900 Minooka Special Assessment, Improvement Prairie Ridge Project, 6.875%, 3/01/33 ........... 3,000,000 3,209,010 Montgomery Special Assessment, Improvement, Lakewood Creek Project, Pre-Refunded, 7.75%, 3/01/30 ......................................................................... 4,745,000 5,359,810 Otter Creek Water Reclamation District Kane County Revenue, Separate Waterworks and Sewage System, Refunding, XLCA Insured, 5.00%, 1/01/39 ................................. 5,000,000 5,176,800 Plano Special Service Area No. 2 Special Tax, Lakewood Springs Project, Series B, 6.375%, 3/01/34 ................................................................................ 8,000,000 8,582,960 Southwestern Development Authority Revenue, Anderson Hospital, 5.625%, 8/15/29 ........... 2,425,000 2,483,273 Wauconda Special Service Area No. 1 Special Tax, Liberty Lakes Project, 6.00%, 3/01/33 ........................................................................ 4,500,000 4,676,175 6.625%, 3/01/33 ....................................................................... 5,271,000 5,668,486 Wonder Lake Special Services Area No. 2 Special Tax, Neumann Homes Project, 6.125%, 3/01/35 ................................................................................ 9,500,000 9,687,340 Yorkville United City Special Services Area Special Tax, No. 04, MPI Grande Reserve Project, Series 104, 6.375%, 3/01/34 ....................... 4,400,000 4,595,580 No. 2003, Windett Ridge Project, Series 101, 6.875%, 3/01/33 .......................... 3,811,000 4,076,512 No. 2005-108, Autumn Creek Project, 6.00%, 3/01/36 .................................... 4,980,000 5,106,293 --------------- 171,686,889 --------------- INDIANA 1.6% Delaware County Hospital Authority Hospital Revenue, Cardinal Health System, 5.25%, 8/01/36 ................................................................................ 5,000,000 5,138,650 Goshen Industrial Revenue, Greencroft Hospital Assn. Inc., Refunding, 5.75%, 8/15/19 ............................................................................... 3,000,000 3,062,220 8/15/28 ............................................................................... 5,000,000 5,080,350 Indiana Health and Educational Facility Financing Authority Revenue, Baptist Homes of Indiana, Refunding, 5.25%, 11/15/35 .................................................... 12,000,000 12,455,280 Indiana Health Facility Financing Authority Hospital Revenue, 6.25%, 3/01/25 ........................................................................ 3,200,000 3,477,792 6.00%, 3/01/34 ........................................................................ 12,000,000 12,792,000 Community Foundation Northwest Indiana, Series A, 6.375%, 8/01/31 ..................... 48,500,000 51,987,635 Jackson County Scheck Memorial Hospital, Refunding, 5.125%, 2/15/17 ................... 1,500,000 1,531,455 Indiana State Development Finance Authority Environmental Revenue, USX Corp. Project, Refunding, 5.60%, 12/01/32 ............................................................. 8,200,000 8,444,688 --------------- 103,970,070 --------------- KANSAS 0.2% Wyandotte County City Unified Government Utility System Revenue, Improvement, Series B, FSA Insured, 5.00%, 9/01/32 ............................................................ 10,000,000 10,418,200 --------------- KENTUCKY 0.6% Kentucky Economic Development Finance Authority Health System Revenue, Norton Healthcare Inc., Refunding, Series C, MBIA Insured, 6.10%, 10/01/22 .................................... 10,650,000 11,894,772 Refunding, Series C, MBIA Insured, 6.15%, 10/01/27 .................................... 3,995,000 4,472,962
Quarterly Statements of Investments | 65 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) KENTUCKY (CONTINUED) Kentucky Economic Development Finance Authority Health System Revenue, Norton Healthcare Inc., (continued) Series C, MBIA Insured, Pre-Refunded, 6.10%, 10/01/22 ................................. $ 5,325,000 $ 6,023,587 Series C, MBIA Insured, Pre-Refunded, 6.15%, 10/01/27 ................................. 6,005,000 6,809,490 Kentucky Economic Development Finance Authority Hospital System Revenue, Appalachian Regional Health Center Facility, Refunding and Improvement, 5.875%, 10/01/22 ........... 6,835,000 6,891,662 --------------- 36,092,473 --------------- LOUISIANA 1.6% Beauregard Parish Revenue, Boise Cascade Corp. Project, Refunding, 6.80%, 2/01/27 ........ 13,990,000 15,526,662 Louisiana Public Facilities Authority Revenue, FHA Insured Mortgage, Baton Rouge General, MBIA Insured, 5.25%, 7/01/33 ........................................................... 32,240,000 34,049,309 Louisiana State Citizens Property Insurance Corp. Assessment Revenue, Series B, AMBAC Insured, 5.00%, 6/01/22 .......................................................... 10,000,000 10,479,300 Louisiana State Gas and Fuels Tax Revenue, Series A, FSA Insured, 5.00%, 5/01/36 ......... 15,000,000 15,667,800 Pointe Coupee Parish PCR, Gulf States Utilities Co. Project, Refunding, 6.70%, 3/01/13 ... 4,850,000 4,852,231 West Feliciana Parish PCR, Entergy Gulf States Project, Refunding, Series B, 6.60%, 9/01/28 ................................................................................ 20,750,000 20,797,932 --------------- 101,373,234 --------------- MAINE 0.5% Rumford PCR, Boise Cascade Corp. Project, Refunding, 6.625%, 7/01/20 ..................... 4,800,000 4,806,768 Skowhegan PCR, S.D. Warren Co., Series A, 6.65%, 10/15/15 ............................................................. 24,570,000 24,860,909 Series B, 6.65%, 10/15/15 ............................................................. 4,940,000 4,998,489 --------------- 34,666,166 --------------- MARYLAND 0.8% Gaithersburg Hospital Facilities Revenue, Shady Grove Adventist Hospital, Refunding and Improvement, Series B, ETM, 8.50%, 9/01/07 ............................................. 535,000 541,019 Maryland State CDA Department of Housing and CDR, Housing, Series A, 5.875%, 7/01/16 ................................................................................ 2,270,000 2,311,541 Maryland State EDC Revenue, Chesapeake Bay, senior lien, Series B, Pre-Refunded, 7.50%, 12/01/14 .................. 1,915,000 2,098,342 Chesapeake Bay, senior lien, Series B, Pre-Refunded, 7.625%, 12/01/22 ................. 6,740,000 7,409,754 Chesapeake Bay, senior lien, Series B, Pre-Refunded, 7.75%, 12/01/31 .................. 16,160,000 17,813,330 senior lien Project, Chesapeake Bay Hyatt Hotel, Refunding, Series A, 4.75%, 12/01/11 ............................................................................ 1,250,000 1,255,512 senior lien Project, Chesapeake Bay Hyatt Hotel, Refunding, Series A, 5.00%, 12/01/16 ............................................................................ 3,000,000 3,061,350 senior lien Project, Chesapeake Bay Hyatt Hotel, Refunding, Series A, 5.00%, 12/01/31 ............................................................................ 10,000,000 10,045,000 senior lien Project, Chesapeake Bay Hyatt Hotel, Refunding, Series B, 5.00%, 12/01/16 ............................................................................ 1,000,000 1,020,450 senior lien Project, Chesapeake Bay Hyatt Hotel, Refunding, Series B, 5.25%, 12/01/31 ............................................................................ 2,000,000 2,046,500
66 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) MARYLAND (CONTINUED) Maryland State Health and Higher Educational Facilities Authority Revenue, Edenwald, Series A, 5.40%, 1/01/37 ............................................................... $ 1,200,000 $ 1,241,076 Takoma Park Hospital Facilities Revenue, Washington Adventist Hospital Project, Series B, ETM, 8.50%, 9/01/07 .................................................................... 2,000,000 2,011,340 --------------- 50,855,214 --------------- MASSACHUSETTS 1.5% Massachusetts Bay Transportation Authority Revenue, General Transportation System, Series A, 7.00%, 3/01/21 ............................................................... 2,000,000 2,420,540 Massachusetts School Building Authority Sales Tax Revenue, Series A, AMBAC Insured, 5.00%, 8/15/37 ......................................................................... 20,500,000 21,586,500 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 3,167,730 Massachusetts State Development Finance Agency Revenue, Berkshire Retirement Project, first mortgage, 5.60%, 7/01/19 .......................... 1,030,000 1,055,142 Berkshire Retirement Project, first mortgage, 5.625%, 7/01/29 ......................... 1,620,000 1,654,425 Curry College, Series A, ACA Insured, 5.00%, 3/01/36 .................................. 2,000,000 2,036,700 Loomis Community Project, first mortgage, Refunding, Series A, 5.625%, 7/01/15 ........ 1,850,000 1,899,414 Loomis Community Project, first mortgage, Refunding, Series A, 5.75%, 7/01/23 ......... 3,500,000 3,589,775 Massachusetts State Health and Educational Facilities Authority Revenue, St. Memorial Medical Center, Refunding, Series A, 6.00%, 10/01/23 ..................... 6,235,000 6,262,559 Sterling and Francine Clark Art Institute, Series A, 5.00%, 7/01/36 ................... 8,000,000 8,343,440 Massachusetts State School Building Authority Dedicated Sales Tax Revenue, Series A, FSA Insured, 5.00%, 8/15/30 ............................................................ 30,950,000 32,409,292 Massachusetts State Water Resources Authority Revenue, General, Refunding, Series A, AMBAC Insured, 5.00%, 8/01/31 .......................................................... 8,000,000 8,407,360 --------------- 92,832,877 --------------- MICHIGAN 3.8% Delta County EDC Environmental Improvement Revenue, Mead Escanaba Paper, Series A, Pre-Refunded, 6.25%, 4/15/27 ........................................................... 10,500,000 11,558,085 Detroit Sewer Disposal System Revenue, second lien, Series A, MBIA Insured, 5.00%, 7/01/35 ................................................................................ 26,750,000 27,811,173 Detroit Water Supply System Revenue, second lien, Refunding, Series C, FSA Insured, 5.00%, 7/01/33 ......................................................................... 11,000,000 11,488,950 Garden City Hospital Finance Authority Hospital Revenue, Garden City Hospital Obligation, Refunding, Series A, 5.00%, 8/15/38 .................................................... 5,250,000 5,135,970 Garden City Hospital Finance Authority Hospital Revenue, Refunding, 5.625%, 9/01/10 ....................................................................... 2,710,000 2,765,853 5.75%, 9/01/17 ........................................................................ 1,000,000 1,019,790 Gaylord Hospital Finance Authority Limited Obligation Revenue, Otsego Memorial Hospital, Refunding, 6.50%, 1/01/31 ............................................................................... 1,000,000 1,053,610 1/01/37 ............................................................................... 1,000,000 1,047,340 Michigan State Building Authority Revenue, Facilities Program, Refunding, Series I, AMBAC Insured, 5.00%, 10/15/33 ............... 13,495,000 14,055,582 Facilities Program, Refunding, Series II, MBIA Insured, 5.00%, 10/15/29 ............... 16,585,000 17,224,186 Refunding, Series IA, FGIC Insured, 5.00%, 10/15/31 ................................... 9,500,000 9,940,420
Quarterly Statements of Investments | 67 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) MICHIGAN (CONTINUED) Michigan State Hospital Finance Authority Revenue, Ascension Health Credit, Series A, MBIA Insured, Pre-Refunded, 6.125%, 11/15/23 ....... $ 18,000,000 $ 19,144,800 Detroit Medical Center Obligation Group, Refunding, Series A, 6.25%, 8/15/13 .......... 7,500,000 7,514,925 Detroit Medical Center Obligation Group, Refunding, Series A, 6.50%, 8/15/18 .......... 30,205,000 30,266,316 Detroit Medical Center Obligation Group, Refunding, Series B, 5.50%, 8/15/23 .......... 500,000 499,940 Detroit Medical Center Obligation Group, Series A, 5.25%, 8/15/23 ..................... 500,000 488,240 Hospital, Oakwood Obligated Group, Refunding, Series A, 5.00%, 7/15/25 ................ 3,500,000 3,552,570 Hospital, Oakwood Obligated Group, Refunding, Series A, 5.00%, 7/15/37 ................ 3,680,000 3,720,591 Marquette, 5.00%, 5/15/34 ............................................................. 6,000,000 6,027,180 Memorial Healthcare Center, Refunding, 5.75%, 11/15/15 ................................ 1,000,000 1,036,390 Mercy Health Services, Series Q, AMBAC Insured, ETM, 5.75%, 8/15/16 ................... 7,310,000 7,375,059 Sinai Hospital, Refunding, 6.625%, 1/01/16 ............................................ 2,990,000 3,012,724 Sinai Hospital, Refunding, 6.70%, 1/01/26 ............................................. 7,250,000 7,297,560 Michigan State Strategic Fund Limited Obligation Revenue, Detroit Edison Co. Pollution Control Project, Refunding, Series C, 5.45%, 9/01/29 ................................... 11,000,000 11,389,840 Midland County EDR, Refunding, Series A, 6.875%, 7/23/09 ................................. 35,000,000 35,517,650 Tawas City Hospital Finance Authority Revenue, Tawas St. Joseph's Hospital Project, Series A, ETM, 5.60%, 2/15/13 .......................................................... 1,275,000 1,316,603 --------------- 241,261,347 --------------- MINNESOTA 1.6% Hubbard County Solid Waste Disposal Revenue, Potlatch Corp. Project, 7.25%, 8/01/14 ...... 9,000,000 10,011,510 Mahtomedi Senior Housing Revenue, St. Andrews Village Project, Refunding, 5.75%, 12/01/40 ............................................................................... 5,000,000 5,050,100 Minneapolis and St. Paul Metropolitan Airports Commission Airport Revenue, Refunding, Sub Series C, FGIC Insured, 5.00%, 1/01/31 ............................................. 21,185,000 21,981,556 Minneapolis Health Care Facility Revenue, Augustana Chapel View Homes, Series D, 5.875%, 6/01/35 ................................ 5,075,000 5,173,049 Fairview Health Services, Series A, Pre-Refunded, 5.625%, 5/15/32 ..................... 18,380,000 19,987,882 Jones-Harrison Residence Project, 5.70%, 10/01/35 ..................................... 1,000,000 1,006,650 Minneapolis Health Care Revenue, Fairview Health Services, AMBAC Insured, 5.00%, 11/15/30 ............................................................................... 8,200,000 8,561,292 Minnesota Agriculture and Economic Development Board Revenue, Health Care System, Refunding, Series A, 6.375%, 11/15/29 ................................................. 175,000 188,542 Series A, Pre-Refunded, 6.375%, 11/15/29 .............................................. 6,325,000 6,897,286 Minnesota State HFAR, Rental Housing, Refunding, Series D, MBIA Insured, 5.95%, 2/01/18 ................................................................................ 320,000 320,742 Minnesota State Municipal Power Agency Electric Revenue, 5.00%, 10/01/35 ................. 5,000,000 5,154,100 a Roseville MFHR, Rosepointe I Project, Refunding, Series C, 8.00%, 12/01/29 ............... 3,145,000 3,288,129 St. Paul Housing and RDA Hospital Revenue, Healtheast Project, 6.00%, 11/15/35 ........... 10,000,000 10,948,300 a St. Paul Housing and RDA Tax Increment Revenue, Energy Park Project, Series A, 8.625%, 9/01/07 ................................................................................ 205,000 202,647 --------------- 98,771,785 --------------- MISSISSIPPI 0.5% Claiborne County PCR, Systems Energy Resources Inc., Refunding, 6.20%, 2/01/26 ........... 33,295,000 33,392,887 ---------------
68 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) MISSOURI 0.2% Lake of the Ozarks Community Board Corp. Bridge System Revenue, Refunding, 5.25%, 12/01/20 ............................................................................... $ 8,350,000 $ 8,528,439 West Plains IDA Hospital Revenue, Ozarks Medical Center, 6.30%, 11/15/11 ....................................................................... 695,000 719,117 6.75%, 11/15/24 ....................................................................... 1,870,000 1,925,259 Refunding, 5.50%, 11/15/12 ............................................................ 500,000 503,100 --------------- 11,675,915 --------------- MONTANA 0.2% Forsyth PCR, Puget Sound Energy, Refunding, Series A, AMBAC Insured, 5.00%, 3/01/31 ...... 10,220,000 10,646,174 --------------- NEBRASKA 0.3% Public Power Generation Agency Revenue, Whelan Energy Center Unit 2, Series A, AMBAC Insured, 5.00%, 1/01/32 ................................................................ 16,485,000 17,250,398 Scotts Bluff County Hospital Authority No. 1 Hospital Revenue, Regional West Medical Center, 6.375%, 12/15/08 ....................................................................... 625,000 626,319 --------------- 17,876,717 --------------- NEVADA 1.8% Clark County ID Special Assessment, Local ID No. 142, Mountains Edge, 6.375%, 8/01/23 ..................................... 4,190,000 4,322,446 Local ID No. 151, Summerlin, 5.00%, 8/01/20 ........................................... 765,000 776,613 Local ID No. 151, Summerlin, 5.00%, 8/01/25 ........................................... 2,405,000 2,436,289 Local Improvement, Special District No. 132, 6.875%, 2/01/21 .......................... 3,840,000 3,964,838 Special Local Improvement, No. 128, Summerlin, Series A, 5.00%, 2/01/26 ............... 1,320,000 1,312,001 Special Local Improvement, No. 128, Summerlin, Series A, 5.05%, 2/01/31 ............... 1,035,000 1,027,869 Clark County IDR, Nevada Power Co. Project, Refunding, Series B, 5.90%, 10/01/30 ......... 5,125,000 5,138,786 Henderson Health Care Facility Revenue, Catholic Healthcare West, Series A, 5.625%, 7/01/24 ................................................................................ 7,000,000 7,459,130 Henderson Local ID Special Assessment, No. T-2, 9.50%, 8/01/11 ............................................................... 365,000 365,091 No. T-4C, Green Valley, Refunding, Series A, 5.90%, 11/01/18 .......................... 3,075,000 3,179,888 No. T-12, Series A, 7.375%, 8/01/18 ................................................... 38,175,000 40,347,921 No. T-16, 4.90%, 3/01/16 .............................................................. 1,390,000 1,404,665 No. T-16, 5.00%, 3/01/18 .............................................................. 1,000,000 1,011,110 No. T-16, 5.00%, 3/01/19 .............................................................. 1,000,000 1,007,100 No. T-16, 5.10%, 3/01/22 .............................................................. 1,500,000 1,511,790 No. T-16, 5.125%, 3/01/25 ............................................................. 1,580,000 1,587,995 No. T-17, 5.00%, 9/01/15 .............................................................. 720,000 734,566 No. T-17, 5.00%, 9/01/16 .............................................................. 740,000 756,990 No. T-17, 5.00%, 9/01/25 .............................................................. 1,395,000 1,414,349 Las Vegas Local Improvement Bonds Special Assessment, Special ID No. 404, Refunding, FSA Insured, 5.85%, 11/01/09 ........................... 2,510,000 2,531,962 Special ID No. 607, 6.25%, 6/01/24 .................................................... 5,000,000 5,160,900 Special ID No. 808, Summerlin Area, 6.75%, 6/01/21 .................................... 8,230,000 8,553,110
Quarterly Statements of Investments | 69 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) NEVADA (CONTINUED) Las Vegas Special Assessment, ID No. 505, Elkhorn Springs, 8.00%, 9/15/13 ................ $ 3,000,000 $ 3,031,200 Washoe County Revenue, Reno-Sparks Convention Center Project, FSA Insured, Pre-Refunded, 6.40%, 7/01/29 ......................................................................... 15,415,000 16,376,125 --------------- 115,412,734 --------------- NEW HAMPSHIRE 0.3% New Hampshire Higher Education and Health Facilities Authority Revenue, Hillcrest Terrace, 7.50%, 7/01/24 ..................................................... 16,050,000 16,431,188 Littleton Hospital Assn., Series B, 5.90%, 5/01/28 .................................... 2,000,000 2,045,300 New Hampshire Catholic Charities, Refunding, Series A, 5.75%, 8/01/11 ................. 980,000 981,509 --------------- 19,457,997 --------------- NEW JERSEY 5.7% Hudson County Improvement Authority Solid Waste Systems Revenue, Refunding, Series 1, 6.00%, 1/01/19 .............................................................. 2,180,000 2,188,611 Series 1, 6.00%, 1/01/29 .............................................................. 5,000,000 5,009,150 Series 2, 6.125%, 1/01/19 ............................................................. 2,125,000 2,139,663 Series 2, 6.125%, 1/01/29 ............................................................. 5,105,000 5,129,351 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 10,526,926 New Jersey EDA Revenue, Cigarette Tax, 5.50%, 6/15/24 ......................................................... 23,000,000 23,825,470 Cigarette Tax, 5.50%, 6/15/31 ......................................................... 6,500,000 6,863,805 Cigarette Tax, 5.75%, 6/15/34 ......................................................... 10,000,000 10,677,600 first mortgage, Keswick Pines, Refunding, 5.75%, 1/01/24 .............................. 1,500,000 1,522,905 first mortgage, Presbyterian, Series A, 6.25%, 11/01/20 ............................... 7,635,000 8,019,117 School Facilities Construction, Series S, 5.00%, 9/01/36 .............................. 10,000,000 10,450,800 New Jersey EDA Special Facility Revenue, Continental Airlines Inc. Project, 6.625%, 9/15/12 ....................................................................... 25,525,000 27,499,359 6.25%, 9/15/19 ........................................................................ 42,000,000 43,460,760 6.40%, 9/15/23 ........................................................................ 79,890,000 82,923,423 New Jersey Health Care Facilities Financing Authority Revenue, Capital Appreciation St Barnabas Health, Series B, zero cpn., 7/01/33 ................. 57,680,000 14,124,678 Capital Appreciation St Barnabas Health, Series B, zero cpn., 7/01/34 ................. 52,330,000 12,109,162 Capital Appreciation St Barnabas Health, Series B, zero cpn., 7/01/35 ................. 20,000,000 4,372,600 South Jersey Hospital, 5.00%, 7/01/46 ................................................. 6,000,000 6,047,700 South Jersey Hospital, Pre-Refunded, 5.875%, 7/01/21 .................................. 7,500,000 8,161,050 South Jersey Hospital, Pre-Refunded, 6.00%, 7/01/32 ................................... 18,000,000 19,689,120 Trinitas Hospital Obligation Group, Refunding, 7.50%, 7/01/30 ......................... 5,000,000 5,562,150 New Jersey State Turnpike Authority Turnpike Revenue, Refunding, Series A, FSA Insured, 5.00%, 1/01/25 ...................................... 13,700,000 14,377,054 Series C, FSA Insured, 5.00%, 1/01/35 ................................................. 10,195,000 10,658,465 Tobacco Settlement Financing Corp. Revenue, Asset-Backed, Pre-Refunded, 6.00%, 6/01/37 ............................................ 10,000,000 10,948,400 Asset-Backed, Pre-Refunded, 6.125%, 6/01/42 ........................................... 9,050,000 9,967,760 Capital Appreciation Bonds, Series 1B, zero cpn., 6/01/41 ............................. 40,000,000 6,078,800 --------------- 362,333,879 ---------------
70 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) NEW MEXICO 2.3% Farmington PCR, Public Service Co. of New Mexico, San Juan Project, Refunding, Series A, 6.30%, 12/01/16 ............................................................................ $ 24,045,000 $ 24,512,675 Public Service Co. of New Mexico, San Juan Project, Refunding, Series D, 6.375%, 4/01/22 ............................................................................. 66,125,000 67,360,876 Public Service Co. Project, Series A, 6.60%, 10/01/29 ................................. 6,000,000 6,418,440 Tucson Electric Power Co., Series A, 6.95%, 10/01/20 .................................. 37,000,000 38,068,190 New Mexico State Hospital Equipment Loan Council Hospital Revenue, St. Vincent Hospital, Series A, Radian Insured, 5.25%, 7/01/30 ........................................................................ 4,360,000 4,534,226 5.00%, 7/01/35 ........................................................................ 3,470,000 3,513,549 --------------- 144,407,956 --------------- NEW YORK 8.9% Corinth IDA Environmental Improvement Revenue, International Paper Co. Project, Refunding, Series A, 5.75%, 2/01/22 ............................................................... 2,000,000 2,080,940 Hudson Yards Infrastructure Corp. Revenue, Series A, 5.00%, 2/15/47 ...................... 10,500,000 10,883,040 Liberty Development Corp. Revenue, Goldman Sachs Headquarters, 5.25%, 10/01/35 ........... 25,000,000 27,811,750 MAC for City of Troy Revenue, Capital Appreciation, Series C, MBIA Insured, zero cpn., 7/15/21 ............................................................................... 428,010 230,637 1/15/22 ............................................................................... 649,658 341,025 MTA Revenue, Series A, MBIA Insured, 4.75%, 11/15/28 ............................................... 15,000,000 15,451,950 Series B, AMBAC Insured, 5.00%, 11/15/30 .............................................. 10,000,000 10,498,300 Transportation, Series F, 5.00%, 11/15/30 ............................................. 7,000,000 7,263,410 MTA Transit Facilities Revenue, Series A, MBIA Insured, Pre-Refunded, 5.875%, 7/01/27 .... 22,700,000 23,075,912 New York City GO, Fiscal 2003, Series I, 5.00%, 3/01/24 ................................................. 5,000,000 5,155,450 Fiscal 2003, Series I, 5.00%, 3/01/25 ................................................. 9,000,000 9,275,220 Refunding, Series G, 5.00%, 8/01/21 ................................................... 10,000,000 10,486,200 Refunding, Series H, 6.25%, 8/01/15 ................................................... 1,535,000 1,556,183 Refunding, Series H, 6.125%, 8/01/25 .................................................. 380,000 385,168 Refunding, Series J, 6.00%, 8/01/21 ................................................... 5,000 5,067 Series B, 7.00%, 2/01/18 .............................................................. 115,000 115,305 Series D, 7.625%, 2/01/14 ............................................................. 5,000 5,015 Series F, 7.50%, 2/01/21 .............................................................. 85,000 85,249 Series G, 7.50%, 2/01/22 .............................................................. 10,000 10,029 Series G, Pre-Refunded, 6.125%, 10/15/11 .............................................. 20,480,000 20,865,024 Series G, Pre-Refunded, 6.20%, 10/15/14 ............................................... 10,000,000 10,190,700 Series H, Pre-Refunded, 6.25%, 8/01/15 ................................................ 23,465,000 23,792,102 Series H, Pre-Refunded, 6.125%, 8/01/25 ............................................... 5,220,000 5,291,775 Series I, 6.25%, 4/15/17 .............................................................. 35,000 35,424 Series J, Pre-Refunded, 6.00%, 8/01/21 ................................................ 9,995,000 10,130,832 New York City IDA, Civic Facility Revenue, Amboy Properties Corp. Project, Refunding, 6.75%, 6/01/20 ............................. 6,515,000 6,569,596 Series C, 6.80%, 6/01/28 .............................................................. 5,000,000 5,351,250 Staten Island University Hospital Project, Series C, 6.45%, 7/01/32 ................... 1,490,000 1,561,744
Quarterly Statements of Investments | 71 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) NEW YORK (CONTINUED) New York City IDAR, Liberty, Seven World Trade Center, Series A, 6.25%, 3/01/15 ........................... $ 10,000,000 $ 10,589,000 Liberty, Seven World Trade Center, Series A, 6.50%, 3/01/35 ........................... 50,000,000 53,038,500 Queens Baseball Stadium-Pilot, AMBAC Insured, 5.00%, 1/01/31 .......................... 9,500,000 10,016,990 New York City IDA Special Facility Revenue, American Airlines Inc., JFK International Airport Project, 7.50%, 8/01/16 ............. 15,000,000 17,352,300 American Airlines Inc., JFK International Airport Project, 7.625%, 8/01/25 ............ 20,000,000 23,846,800 American Airlines Inc., JFK International Airport Project, 7.75%, 8/01/31 ............. 15,000,000 18,051,750 American Airlines Inc., JFK International Airport Project, Series A, 8.00%, 8/01/12 ... 74,000,000 84,658,220 British Airways PLC Project, 7.625%, 12/01/32 ......................................... 15,000,000 16,633,950 New York City Municipal Water Finance Authority Water and Sewer System Revenue, Series A, 4.75%, 6/15/30 .............................................................. 15,000,000 15,348,450 Series C, 5.00%, 6/15/30 .............................................................. 15,000,000 15,644,250 Series E, 5.00%, 6/15/34 .............................................................. 10,000,000 10,319,900 New York State Dormitory Authority Revenues, State Supported Debt, Mental Health Services, Refunding, Series A, 6.00%, 8/15/17 .................................................... 40,000 40,871 New York State Dormitory Authority State Personal Income Tax Revenue, Education, Series D, 5.00%, 3/15/31 ......................................................................... 10,000,000 10,514,600 New York State HFA Service Contract Obligation Revenue, Series A, 6.00%, 3/15/26 ......... 220,000 223,571 Oneida County IDAR, Civic Facility, St. Elizabeth Medical, Series B, 6.00%, 12/01/19 ..... 1,000,000 1,025,130 Onondaga County IDA Solid Waste Disposal Facility Revenue, Solvay Paperboard LLC Project, Refunding, 6.80%, 11/01/14 ....................................................................... 4,600,000 4,782,528 7.00%, 11/01/30 ....................................................................... 7,000,000 7,269,360 Port Authority of New York and New Jersey Revenue, Consolidated, 140th, XLCA Insured, 5.00%, 12/01/27 ........................................................................ 17,020,000 18,022,308 Port Authority of New York and New Jersey Special Obligation Revenue, Continental Airlines Inc., Eastern Project, La Guardia, 9.00%, 12/01/10 ....................................................................... 8,325,000 8,461,863 9.125%, 12/01/15 ...................................................................... 27,650,000 28,277,378 Utica IDA Civic Facility Revenue, Utica College Civic Facility, 6.75%, 12/01/21 ....................................................................... 1,250,000 1,375,575 6.85%, 12/01/31 ....................................................................... 2,000,000 2,202,100 --------------- 566,199,691 --------------- NORTH CAROLINA 1.9% Charlotte Airport Revenue, Series A, MBIA Insured, 5.00%, 7/01/29 ........................ 15,310,000 15,966,646 North Carolina Eastern Municipal Power Agency Power System Revenue, Refunding, Series A, 5.75%, 1/01/26 ................................................... 37,500,000 39,024,000 Refunding, Series B, 5.75%, 1/01/24 ................................................... 35,750,000 37,213,962 Series D, 6.70%, 1/01/19 .............................................................. 2,000,000 2,144,680 Series D, 6.75%, 1/01/26 .............................................................. 5,000,000 5,366,450 North Carolina HFAR, SF, Series II, FHA Insured, 6.20%, 3/01/16 ............................................................................... 935,000 977,552 9/01/17 ............................................................................... 645,000 651,437 North Carolina Medical Care Commission Health Care Facilities Revenue, Pennybyrn at Maryfield, Series A, 5.75%, 10/01/23 ....................................................................... 3,625,000 3,745,640 6.00%, 10/01/23 ....................................................................... 2,500,000 2,624,900
72 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) NORTH CAROLINA (CONTINUED) North Carolina Medical Care Commission Retirement Facilities Revenue, first mortgage, United Methodist, Refunding, Series C, 5.25%, 10/01/24 ....................................................................... $ 920,000 $ 935,438 5.50%, 10/01/32 ....................................................................... 1,600,000 1,640,656 North Carolina Medical Care Commission Revenue, Series A, 6.125%, 10/01/35 ............... 7,000,000 7,383,950 --------------- 117,675,311 --------------- NORTH DAKOTA 0.1% Ward County Health Care Facilities Revenue, Trinity Obligated Group, 5.125%, 7/01/25 ............................................................................... 2,250,000 2,286,630 7/01/29 ............................................................................... 2,500,000 2,531,575 --------------- 4,818,205 --------------- OHIO 1.5% Centerville City School District GO, School Improvement, FSA Insured, 5.00%, 12/01/30 .... 9,260,000 9,707,073 Cuyahoga County Hospital Revenue, Refunding, 5.50%, 1/01/29 .............................. 11,500,000 12,161,020 Dayton Special Facilities Revenue, Emery Air Freight Corp., Emery Worldwide Air Inc., Refunding, Series C, 6.05%, 10/01/09 ............................................................. 14,250,000 14,923,027 Series E, 6.05%, 10/01/09 ............................................................. 5,250,000 5,497,958 Series F, 6.05%, 10/01/09 ............................................................. 1,000,000 1,047,230 Franklin County Health Care Facilities Revenue, Ohio Presbyterian, Series A, Pre-Refunded, 7.125%, 7/01/29 ............................ 1,000,000 1,129,260 Presbyterian Retirement Services, Refunding, 5.50%, 7/01/17 ........................... 3,100,000 3,151,770 Presbyterian Retirement Services, Refunding, 5.50%, 7/01/21 ........................... 950,000 965,561 Presbyterian Retirement Services, Series A, Pre-Refunded, 6.625%, 7/01/13 ............. 1,000,000 1,019,340 Franklin County Ohio Hospital Revenue, The Children's Hospital, FGIC Insured, 5.00%, 5/01/35 ................................................................................ 10,000,000 10,369,500 Hamilton County Sales Tax Revenue, Refunding, Sub Series A, AMBAC Insured, 5.00%, 12/01/32 ............................................................................... 10,000,000 10,500,900 Lucas County Health Facilities Revenue, Presbyterian Retirement Services, Series A, Pre-Refunded, 6.625%, 7/01/14 ....................................................................... 1,000,000 1,019,940 6.75%, 7/01/20 ........................................................................ 2,000,000 2,044,140 Miami County Hospital Facilities Revenue, Refunding and Improvement, Upper Valley Medical Center, 5.25%, 5/15/26 ......................................................... 2,750,000 2,875,675 Montgomery County Health System Revenue, Series B-1, 8.10%, 7/01/18 ............................................................ 245,000 248,207 Series B-2, 8.10%, 7/01/18 ............................................................ 295,000 295,917 St. Leonard, Series B, 8.10%, 7/01/18 ................................................. 400,000 401,244 Ohio State Air Quality Development Authority Revenue, PCR, Cleveland Electric, Refunding, Series B, 6.00%, 8/01/20 ............................................................... 6,250,000 6,393,438 Oregon City School District GO, AMBAC Insured, 5.00%, 12/01/27 ........................... 5,000,000 5,255,200 Toledo Lucas County Port Authority Airport Revenue, Bax Global Project, Refunding, Series 1, 6.25%, 11/01/13 ............................................................... 3,700,000 3,839,009 Willoughby IDR, Presbyterian Retirement Services, Refunding, Series A, Pre-Refunded, 6.875%, 7/01/16 ........................................................................ 1,500,000 1,530,945 --------------- 94,376,354 ---------------
Quarterly Statements of Investments | 73 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) OKLAHOMA 0.2% Oklahoma Development Finance Authority Revenue, Comanche County Hospital Project, Series B, 6.60%, 7/01/31 ............................................................... $ 5,000,000 $ 5,450,700 Tulsa Industrial Authority Revenue, Refunding, MBIA Insured, 5.00%, 10/01/31 ............. 5,325,000 5,571,015 Valley View Hospital Authority Revenue, Valley View Regional Medical Center, Refunding, 6.00%, 8/15/14 ......................................................................... 4,000,000 4,168,080 --------------- 15,189,795 --------------- OREGON 0.4% Oregon State Department of Administrative Services COP, Series A, AMBAC Insured, Pre-Refunded, 6.00%, 5/01/26 ........................................... 9,400,000 10,034,312 FSA Insured, 5.00%, 5/01/30 ........................................................... 8,195,000 8,570,085 Oregon State Health Housing Educational and Cultural Facilities Authority Revenue, Linfield College Project, Series A, 6.75%, 10/01/25 ....................................................................... 5,000 5,394 Pre-Refunded, 6.75%, 10/01/25 ......................................................... 5,215,000 5,719,447 --------------- 24,329,238 --------------- PENNSYLVANIA 5.8% Allegheny County Hospital Development Authority Revenue, Health System, Series A, MBIA Insured, Pre-Refunded, 6.50%, 11/15/30 .................. 10,000,000 11,039,400 Health System, Series B, Pre-Refunded, 9.25%, 11/15/15 ................................ 23,110,000 26,683,268 Health System, Series B, Pre-Refunded, 9.25%, 11/15/22 ................................ 24,000,000 28,460,400 d West Pennsylvania Allegheny Health System, Refunding, 5.00%, 11/15/28 ................. 33,360,000 32,798,885 d West Pennsylvania Allegheny Health System, Refunding, 5.375%, 11/15/40 ................ 45,000,000 45,845,100 Allegheny County IDAR, Environmental Improvement, USX Corp., Refunding, 6.10%, 7/15/20 ................................................................................ 5,500,000 5,619,350 Allegheny County Sanitation Authority Sewer Revenue, Refunding, Series A, MBIA Insured, 5.00%, 12/01/30 ........................................................................ 12,775,000 13,377,597 Carbon County IDAR, Panther Creek Partner Project, Refunding, 6.65%, 5/01/10 ............. 2,225,000 2,288,857 Delaware County IDAR, Resource Recovery Facility, Refunding, Series A, 6.50%, 1/01/08 ........................................................................ 425,000 430,814 6.10%, 7/01/13 ........................................................................ 20,500,000 21,073,795 6.20%, 7/01/19 ........................................................................ 9,500,000 9,780,535 Harrisburg Authority University Revenue, Harrisburg University of Science, Series A, 5.40%, 9/01/16 .............................................................. 1,500,000 1,546,080 Series B, 6.00%, 9/01/36 .............................................................. 3,000,000 3,115,950 Lancaster IDAR, Garden Spot Village Project, Series A, Pre-Refunded, 7.625%, 5/01/31 ..... 1,650,000 1,833,397 Lehigh County IDA, PCR, Pennsylvania Power and Light Electrical Utilities Corp. Project, Refunding, Series A, FGIC Insured, 4.70%, 9/01/29 ...................................... 16,000,000 16,289,920 Pennsylvania Economic Development Financing Authority Exempt Facilities Revenue, Reliant Energy Seward, Series A, 6.75%, 12/01/36 ............................................... 65,000,000 71,837,350 Pennsylvania State Higher Educational Facilities Authority Health Services Revenue, Allegheny Delaware Valley Obligation Group, Refunding, Series A, MBIA Insured, 5.875%, 11/15/16 ............................................................................. 13,000,000 13,253,760 Pennsylvania State Public School Building Authority Lease Revenue, School District of Philadelphia Project, Refunding, Series B, FSA Insured, 4.75%, 6/01/30 ................. 24,000,000 24,403,440 Philadelphia IDA Health Care Facility Revenue, Paul's Run, Refunding, Series A, 5.85%, 5/15/13 ................................................................................ 2,200,000 2,241,492
74 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) PENNSYLVANIA (CONTINUED) Philadelphia Water and Wastewater Revenue, Series A, FSA Insured, 5.00%, 7/01/27 ......... $ 10,020,000 $ 10,500,760 Sayre Health Care Facilities Authority Revenue, Guthrie Healthcare System, Refunding, Series A, 5.75%, 12/01/21 .................................................. 815,000 864,707 Series A, Pre-Refunded, 5.75%, 12/01/21 ............................................... 2,185,000 2,369,283 State Public School Building Authority School Revenue, School District of Philadelphia Project, FSA Insured, Pre-Refunded, 5.00%, 6/01/33 ..................................... 13,750,000 14,565,925 Washington County IDA, PCR, West Pennsylvania Power Co., Series G, AMBAC Insured, 6.05%, 4/01/14 ......................................................................... 5,025,000 5,034,899 --------------- 365,254,964 --------------- RHODE ISLAND 0.1% Rhode Island State Health and Educational Building Corp. Revenue, Hospital Financing, Lifespan Obligation Group, Pre-Refunded, 6.50%, 8/15/32 .......................................................... 8,000,000 8,980,960 Refunding, MBIA Insured, 5.75%, 5/15/23 ............................................... 405,000 413,752 --------------- 9,394,712 --------------- SOUTH CAROLINA 1.0% Dorchester County School District No. 002 Installment Purchase Revenue, Growth Remedy Opportunities Tax Hike, 5.25%, 12/01/29 ................................................ 16,500,000 17,226,000 Greenville County School District Installment Purchase Revenue, Building Equity Sooner Tomorrow, 5.00%, 12/01/28 ....................................................................... 10,000,000 10,327,700 Refunding, 5.00%, 12/01/28 ............................................................ 7,500,000 7,798,725 Lancaster Educational Assistance Program Inc. Revenue, School District of Lancaster County Project, 5.00%, 12/01/26 ............................................................... 15,015,000 15,192,477 Scago Educational Facilities Corp. for Calhoun School District Revenue, School Project, Radian Insured, 5.00%, 12/01/26 ........................................................ 7,540,000 7,746,370 Scago Educational Facilities Corp. for Williamsburg School District Revenue, Williamsburg County Project, Refunding, Radian Insured, 5.00%, 12/01/31 ............................. 2,000,000 2,056,300 Tobacco Settlement Revenue Management Authority Tobacco Settlement Revenue, Series B, 6.375%, 5/15/30 ........................................................................ 3,750,000 4,352,925 --------------- 64,700,497 --------------- TENNESSEE 1.3% Clarksville Natural Gas Acquisition Corp. Gas Revenue, 5.00%, 12/15/20 ................... 5,990,000 6,340,834 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 5,175,700 Johnson City Health and Educational Facilities Board Hospital Revenue, first mortgage, Mountain States Health, Refunding, Series A, MBIA Insured, zero cpn., 7/01/27 .............................................................................. 19,365,000 7,651,499 7/01/28 .............................................................................. 19,400,000 7,303,712 7/01/29 .............................................................................. 19,365,000 6,945,451 7/01/30 .............................................................................. 19,370,000 6,616,792 Knox County Health Educational and Housing Facilities Board Hospital Facilities Revenue, Capital Appreciation, Refunding and Improvement, Series A, FSA Insured, zero cpn., 1/01/25 .............................................................................. 5,000,000 1,894,850 Capital Appreciation, Refunding and Improvement, Series A, FSA Insured, zero cpn., 1/01/26 .............................................................................. 2,610,000 930,282
Quarterly Statements of Investments | 75 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) TENNESSEE (CONTINUED) Knox County Health Educational and Housing Facilities Board Hospital Facilities Revenue, (continued) Covenant Health System, Refunding and Improvement, Series A, zero cpn., 1/01/37 ....... $ 12,760,000 $ 2,740,210 Covenant Health System, Refunding and Improvement, Series A, zero cpn., 1/01/39 ....... 13,755,000 2,645,774 Knox County Health Educational and Housing Facilities Board Revenue, Refunding, University Health System Inc., 5.25%, 4/01/36 ..................................................... 10,475,000 10,732,790 Tennessee Energy Acquisition Corp. Gas Revenue, Series A, 5.25%, 9/01/26 ................. 20,000,000 21,807,600 --------------- 80,785,494 --------------- TEXAS 3.0% Angelina and Neches River Authority Waste Disposal Revenue, Temple-Inland Forest Products, 6.95%, 5/01/23 ......................................................................... 1,750,000 1,925,053 Austin Convention Enterprises Inc. Convention Center Revenue, first tier, Refunding, Series A, XLCA Insured, 5.00%, 1/01/34 ..................................... 16,000,000 16,666,720 Refunding, Series B, 5.75%, 1/01/34 ................................................... 3,500,000 3,643,570 Series A, Pre-Refunded, 6.70%, 1/01/32 ................................................ 10,000,000 10,917,900 Bexar County Health Facilities Development Corp. Revenue, Army Retirement Residence, Refunding, 5.00%, 7/01/27 .................................. 1,000,000 1,007,050 Army Retirement Residence, Refunding, 5.00%, 7/01/33 .................................. 760,000 758,875 Army Retirement Residence, Refunding, 5.00%, 7/01/37 .................................. 580,000 577,297 Incarnate Word Health Services, FSA Insured, ETM, 6.00%, 11/15/15 ..................... 8,750,000 8,843,362 Brazos River Authority PCR, TXU Energy Co. Project, Refunding, Series B, 6.30%, 7/01/32 ................................................................................ 9,000,000 9,602,460 Brazos River Harbor Navigation District Brazoria County Environmental Revenue, Dow Chemical Co. Project, Refunding, Series B-2, 4.95%, 5/15/33 ........................ 2,500,000 2,513,375 Brownsville Utility System Revenue, Refunding and Improvement, Series A, AMBAC Insured, 5.00%, 9/01/31 ......................................................................... 12,500,000 13,065,500 Coppell Special Assessment, Gateway Project, 8.70%, 3/01/12 .............................. 1,945,000 1,961,085 Decatur Hospital Authority Hospital Revenue, Series A, ETM, 5.75%, 9/01/29 ............... 4,750,000 5,318,813 El Paso Health Facilities Development Corp. Revenue, Senior Care Facilities, Bienvivir Senior Health, 7.00%, 8/15/12 ........................................................................ 765,000 810,602 7.50%, 8/15/18 ........................................................................ 2,300,000 2,481,792 7.75%, 8/15/31 ........................................................................ 3,000,000 3,285,630 Georgetown Health Facilities Development Corp. Revenue, Georgetown Healthcare System, Pre-Refunded, 6.25%, 8/15/29 ........................................................... 10,975,000 11,732,494 Matagorda County Navigation District No. 1 Revenue, Centerpoint Energy Project, Refunding, 5.60%, 3/01/27 ......................................................................... 11,000,000 11,605,990 Sabine River Authority PCR, TXU Electric, Refunding, Series C, 5.20%, 5/01/28 ..................................... 15,000,000 15,121,200 TXU Energy Co. LLC Project, Refunding, Series A, 5.80%, 7/01/22 ....................... 1,000,000 1,040,480 TXU Energy Co. LLC Project, Refunding, Series B, 6.15%, 8/01/22 ....................... 3,000,000 3,197,850 Texas Municipal Gas Acquisition and Supply Corp. I Gas Supply Revenue, Senior Lien, Series A, 5.25%, 12/15/22 .............................................................................. 5,000,000 5,427,400 12/15/23 .............................................................................. 6,000,000 6,513,300 12/15/25 .............................................................................. 7,000,000 7,618,100
76 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) TEXAS (CONTINUED) Texas State Revenue, Transportation Commission-Mobility Fund, Series A, 5.00%, 4/01/33 ................................................................................ $ 10,000,000 $ 10,425,100 Texas State Turnpike Authority Revenue, Capital Appreciation, AMBAC Insured, zero cpn., 8/15/32 ................................................................................ 51,000,000 12,487,860 Tyler Health Facilities Development Corp. Revenue, Mother Frances Hospital, Series B, 5.00%, 7/01/37 ......................................................................... 3,400,000 3,368,516 Waco Health Facilities Development Corp. FHA Insured Mortgage Revenue, Hillcrest Health System Project, Series A, MBIA Insured, 5.00%, 8/01/31 ................................. 15,000,000 15,511,350 --------------- 187,428,724 --------------- VERMONT 0.2% Vermont Educational and Health Buildings Financing Agency Revenue, Fletcher Allen Health, Series A, AMBAC Insured, 6.00%, 12/01/23 ............................................... 15,000,000 16,042,800 --------------- VIRGINIA 1.6% Fairfax County EDA Transportation Contract Revenue, Route 28 Project, MBIA Insured, 5.00%, 4/01/33 ......................................................................... 5,000,000 5,216,750 Greater Richmond Convention Center Authority Hotel Tax Revenue, Refunding, MBIA Insured, 5.00%, 6/15/30 ......................................................................... 12,255,000 12,806,598 James City County EDA Residential Care Facility Revenue, first mortgage, Williamsburg Landing, Series A, 5.35%, 9/01/26 ........................................................................ 750,000 774,135 5.50%, 9/01/34 ........................................................................ 750,000 775,523 Peninsula Ports Authority Coal Terminal Revenue, Dominion Terminal Associates, Refunding, 6.00%, 4/01/33 ......................................................................... 9,000,000 9,748,710 Tobacco Settlement Financing Corp. Revenue, Asset-Backed, Pre-Refunded, 5.50%, 6/01/26 ............................................ 2,500,000 2,718,850 Asset-Backed, Pre-Refunded, 5.625%, 6/01/37 ........................................... 3,000,000 3,330,540 Capital Appreciation Bonds, First Sub Series C, zero cpn., 6/01/47 .................... 50,000,000 5,423,500 Capital Appreciation Bonds, Second Sub Series D, zero cpn., 6/01/47 ................... 50,000,000 5,191,500 Senior Series B1, 5.00%, 6/01/47 ...................................................... 6,250,000 6,133,312 Virginia Beach Development Authority Residential Care Facility Mortgage Revenue, Westminster Canterbury Project, Refunding, 5.00%, 11/01/22 ............................................................ 1,000,000 1,011,590 Refunding, 5.25%, 11/01/26 ............................................................ 1,000,000 1,025,210 Refunding, 5.375%, 11/01/32 ........................................................... 1,000,000 1,026,740 Series A, Pre-Refunded, 7.125%, 11/01/23 .............................................. 5,000,000 5,479,600 Series A, Pre-Refunded, 7.25%, 11/01/32 ............................................... 9,000,000 9,888,930 Virginia State HDA Commonwealth Mortgage Revenue, 4.80%, 7/01/29 ......................... 31,000,000 31,101,990 --------------- 101,653,478 --------------- WASHINGTON 1.5% Douglas County PUD No. 1 Wells Hydroelectric Revenue, Refunding, Series B, FGIC Insured, 5.00%, 9/01/35 ......................................................................... 7,685,000 7,994,859 Energy Northwest Electric Revenue, Columbia Generating Station, Refunding, Series A, 5.00%, 7/01/24 ................................................... 15,260,000 15,996,448 Series C, 5.00%, 7/01/24 .............................................................. 5,000,000 5,241,300 Port Seattle Revenue, intermediate lien, Refunding, Series A, MBIA Insured, 5.00%, 3/01/30 ................................................................................ 15,000,000 15,613,800
Quarterly Statements of Investments | 77 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) WASHINGTON (CONTINUED) Spokane GO, Refunding, Series A, FGIC Insured, 5.00%, 12/01/30 ........................... $ 5,720,000 $ 6,002,225 Washington State GO, AMBAC Insured, 5.00%, 1/01/31 ......................................................... 17,020,000 17,816,366 Motor Vehicle Fuel Tax, Series C, 5.00%, 6/01/29 ...................................... 5,180,000 5,398,026 Motor Vehicle Fuel Tax, Series C, 5.00%, 6/01/30 ...................................... 5,370,000 5,596,023 Washington State Health Care Facilities Authority Revenue, Kadlec Medical Center, Series A, Assured Guaranty Insured, 5.00%, 12/01/30 ............ 4,000,000 4,128,080 Providence Health Care Services, Refunding, Series A, FGIC Insured, 5.00%, 10/01/36 ............................................................................ 9,695,000 10,045,183 Providence Health Care Services, Series A, FGIC Insured, Pre-Refunded, 5.00%, 10/01/36 ............................................................................ 305,000 328,522 --------------- 94,160,832 --------------- 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 10,428,700 --------------- WISCONSIN 1.1% Central Brown County Water Authority Water System Revenue, Refunding, AMBAC Insured, 5.00%, 12/01/30 ........................................................................ 16,705,000 17,492,975 --------------- Green Bay Water System Revenue, FSA Insured, Pre-Refunded, 5.00%, 11/01/29 ............................................ 3,750,000 4,003,050 Refunding, FSA Insured, 5.00%, 11/01/29 ............................................... 1,250,000 1,303,338 Kaukauna Environmental Improvement Revenue, International Paper Co. Project, Series A, 6.70%, 5/01/24 ......................................................................... 4,100,000 4,326,156 Wisconsin Housing and EDA Home Ownership Revenue, Series E, 4.90%, 9/01/37 ............... 26,210,000 26,300,424 Wisconsin State Health and Educational Facilities Authority Revenue, Fort Healthcare Inc. Project, 5.75%, 5/01/24 .......................................... 5,000,000 5,291,200 New Castle Place Project, Series A, 7.00%, 12/01/31 ................................... 2,500,000 2,644,500 Thedacare Inc., AMBAC Insured, 5.00%, 12/15/30 ........................................ 9,530,000 9,857,451 --------------- 71,219,094 --------------- U.S. TERRITORIES 2.4% GUAM 0.2% Guam Government Waterworks Authority Water and Wastewater System Revenue, Water, 6.00%, 7/01/25 ........................................................................ 4,000,000 4,355,600 5.875%, 7/01/35 ....................................................................... 8,000,000 8,539,280 --------------- 12,894,880 --------------- NORTHERN MARIANA ISLANDS 0.5% Northern Mariana Islands Commonwealth GO, Refunding, Series B, 5.00%, 10/01/33 ........... 25,000,000 24,602,750 Northern Mariana Islands Commonwealth Ports Authority Seaport Revenue, Series A, 6.60%, 3/15/28 ................................................................................ 7,835,000 8,728,503 --------------- 33,331,253 --------------- PUERTO RICO 1.1% Children's Trust Fund Puerto Rico Tobacco Settlement Revenue, Asset-Backed Bonds, Refunding, 5.50%, 5/15/39 ........................................................................ 11,500,000 12,056,255 5.625%, 5/15/43 ....................................................................... 3,500,000 3,683,785
78 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) U.S. TERRITORIES (CONTINUED) PUERTO RICO (CONTINUED) Puerto Rico Commonwealth GO, Public Improvement, Series A, 5.00%, 7/01/34 ................ $ 20,000,000 $ 20,587,200 Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Series J, Pre-Refunded, 5.00%, 7/01/34 ................................................. 11,500,000 12,304,310 Puerto Rico Electric Power Authority Power Revenue, Series NN, Pre-Refunded, 5.125%, 7/01/29 ................................................................................ 11,500,000 12,286,830 University of Puerto Rico Revenues, University System, Refunding, Series P, 5.00%, 6/01/30 ................................................................................ 7,645,000 7,913,569 --------------- 68,831,949 --------------- VIRGIN ISLANDS 0.6% Virgin Islands PFAR, sub. lien, Fund Loan Notes, Refunding, Series E, 5.75%, 10/01/13 ....................................................................... 15,000,000 15,478,200 5.875%, 10/01/18 ...................................................................... 7,000,000 7,230,650 6.00%, 10/01/22 ....................................................................... 14,500,000 14,991,260 --------------- 37,700,110 --------------- TOTAL U.S. TERRITORIES ................................................................... 152,758,192 --------------- TOTAL LONG TERM INVESTMENTS (COST $5,877,113,833) ........................................ 6,247,631,191 --------------- SHORT TERM INVESTMENTS 1.5% MUNICIPAL BONDS 1.5% COLORADO 0.0% e f Colorado Educational and Cultural Facilities Authority Revenue, National Jewish Federal Bond Program, Series A-7, Weekly VRDN and Put, 3.88%, 7/01/29 .......................... 600,000 600,000 --------------- FLORIDA 0.3% f Brevard County Health Facilities Authority Revenue, Wuesthoff Memorial Hospital Project, Weekly VRDN and Put, 3.78%, 8/01/31 .................................................... 300,000 300,000 f Jacksonville Health Facilities Authority Hospital Revenue, Baptist Medical Center Project, Daily VRDN and Put, 3.87%, 8/15/21 ..................... 2,400,000 2,400,000 Charity Obligation Group, Series C, MBIA Insured, Weekly VRDN and Put, 3.87%, 8/15/19 ................................................................................ 900,000 900,000 f Manatee County PCR, Florida Power and Light Co. Project, Refunding, Daily VRDN and Put, 3.89%, 9/01/24 ......................................................................... 4,110,000 4,110,000 f Orange County School Board COP, Series B, MBIA Insured, Daily VRDN and Put, 3.90%, 8/01/27 ................................................................................ 1,740,000 1,740,000 f Pinellas County Health Facilities Authority Revenue, Pooled Hospital Loan Program, Refunding, AMBAC Insured, Daily VRDN and Put, 3.90%, 12/01/15 .......................... 5,900,000 5,900,000 --------------- 15,350,000 --------------- GEORGIA 0.0% e f Atlanta Water and Wastewater Revenue, Series C, FSA Insured, Daily VRDN and Put, 3.90%, 11/01/41 ............................................................................... 1,400,000 1,400,000 f Hapeville IDAR, Hapeville Hotel Ltd., Daily VRDN and Put, 3.88%, 11/01/15 ................ 1,100,000 1,100,000 --------------- 2,500,000 ---------------
Quarterly Statements of Investments | 79 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) KENTUCKY 0.1% f Breckinridge County Lease Program Revenue, Kentucky Assn. Counties Leasing Trust, Series A, Weekly VRDN and Put, 3.88%, 2/01/32 .......................................... $ 3,340,000 $ 3,340,000 --------------- LOUISIANA 0.1% f Louisiana Public Facilities Authority Revenue, Kenner Hotel Ltd., Daily VRDN and Put, 3.88%, 12/01/15 ........................................................................ 7,400,000 7,400,000 f Louisiana State Offshore Terminal Authority Deepwater Port Revenue, Loop Inc. Project, First Stage, ACES, Refunding, Daily VRDN and Put, 3.90%, 9/01/17 ....................... 900,000 900,000 --------------- 8,300,000 --------------- MASSACHUSETTS 0.0% e f Massachusetts State Health and Educational Facilities Authority Revenue, Capital Assets Program, Series D, MBIA Insured, Daily VRDN and Put, 3.88%, 1/01/35 .................... 600,000 600,000 --------------- MICHIGAN 0.0% e f Detroit Sewage Disposal Revenue, senior lien, Series B, FSA Insured, Daily VRDN and Put, 3.90%, 7/01/33 ......................................................................... 1,200,000 1,200,000 --------------- MISSOURI 0.0% e f Missouri State Health and Educational Facilities Authority Educational Facilities Revenue, Washington University, Series B, Daily VRDN and Put, 3.93%, 2/15/33 ................... 135,000 135,000 f Missouri State Health and Educational Facilities Authority Health Facilities Revenue, SSM Health Care Corp., Refunding, Series C-1, FSA Insured, Daily VRDN and Put, 3.90%, 6/01/19 .............................................................................. 1,200,000 1,200,000 --------------- 1,335,000 --------------- NEVADA 0.1% f Las Vegas Valley Water District GO, Water Improvement, Series C, Daily VRDN and Put, 3.90%, 6/01/36 ......................................................................... 8,000,000 8,000,000 --------------- NEW JERSEY 0.2% f New Jersey EDA Revenue, School Facilities Construction, Sub Series R-3, Daily VRDN and Put, 3.86%, 9/01/31 .................................................................... 9,560,000 9,560,000 f New Jersey Sports and Exposition Authority State Contract Revenue, Refunding, Series B-2, MBIA Insured, Weekly VRDN and Put, 3.70%, 3/01/21 ...................................... 2,135,000 2,135,000 --------------- 11,695,000 --------------- NEW YORK 0.5% f Long Island Power Authority Electric System Revenue, Sub Series 3B, Daily VRDN and Put, 3.88%, 5/01/33 ......................................................................... 200,000 200,000 f MTA Revenue, Transportation, Sub Series G-2, Daily VRDN and Put, 3.91%, 11/01/26 ......... 4,000,000 4,000,000 f New York City GO, Sub Series E-3, Daily VRDN and Put, 3.86%, 8/01/23 .................................... 1,700,000 1,700,000 Sub Series H-4, Daily VRDN and Put, 3.86%, 3/01/34 .................................... 2,660,000 2,660,000 f New York City Municipal Water Finance Authority Water and Sewer System Revenue, Series A, FGIC Insured, Daily VRDN and Put, 3.84%, 6/15/25 ............................ 1,465,000 1,465,000 Series C, FGIC Insured, Daily VRDN and Put, 3.88%, 6/15/23 ............................ 2,000,000 2,000,000
80 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN HIGH YIELD TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) NEW YORK (CONTINUED) f New York City Transitional Finance Authority Revenue, Future Tax Secured, Series B, Daily VRDN and Put, 3.84%, 2/01/31 .......................................... $ 2,200,000 $ 2,200,000 Series C, Daily VRDN and Put, 3.89%, 5/01/28 .......................................... 13,055,000 13,055,000 f Port Authority of New York and New Jersey Special Obligation Revenue, Versatile Structure, Series 2, Daily VRDN and Put, 3.88%, 5/01/19 ........................................... 2,500,000 2,500,000 --------------- 29,780,000 --------------- NORTH CAROLINA 0.0% e f North Carolina State GO, Series G, Weekly VRDN and Put, 3.70%, 5/01/21 ................... 625,000 625,000 --------------- TENNESSEE 0.1% f Clarksville PBA Revenue, Pooled Financing, Tennessee Municipal Bond Fund, Daily VRDN and Put, 3.90%, 7/01/31 ............................................................................... 1,800,000 1,800,000 11/01/35 .............................................................................. 1,800,000 1,800,000 f Montgomery County PBA Pooled Financing Revenue, Tennessee County Loan Pool, Daily VRDN and Put, 3.90%, 7/01/34 ..................................................... 1,300,000 1,300,000 --------------- 4,900,000 --------------- TEXAS 0.1% f Texas Municipal Gas Acquisition and Supply Corp. I Gas Supply Revenue, Senior Lien, Series B, Quarterly VRDN and Put, 3.928%, 12/15/09 ..................................... 6,000,000 6,000,000 --------------- TOTAL SHORT TERM INVESTMENTS (COST $94,225,000) .......................................... 94,225,000 --------------- TOTAL INVESTMENTS (COST $5,971,338,833) 100.0% ........................................... 6,341,856,191 OTHER ASSETS, LESS LIABILITIES 0.0% e .................................................... 119,853 --------------- NET ASSETS 100.0% ........................................................................ $ 6,341,976,044 ===============
See Selected Portfolio Abbreviations on page 176. a Security has been deemed illiquid because it may not be able to be sold within seven days. At May 31, 2007, the aggregate value of these securities was $9,049,991, representing 0.14% of net assets. b Defaulted security. c The bond pays interest based upon the issuer's ability to pay, which may be less than the stated interest rate. d Security purchased on a when-issued or delayed delivery basis. e Rounds to less than 0.1% of net assets. f Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. Quarterly Statements of Investments | See Notes to Statements of Investments. | 81 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 99.0% MUNICIPAL BONDS 99.0% ALABAMA 9.9% Alabama Drinking Water Finance Authority Revenue, Revolving Fund Loan, Series A, AMBAC Insured, 5.25%, 8/15/21 ............................................................ $ 2,490,000 $ 2,615,347 Anniston Regional Medical Center Board Revenue, Series A, AMBAC Insured, 5.25%, 6/01/18 .................................................................................. 5,000,000 5,157,150 Bessemer GO, wts., XLCA Insured, 5.00%, 2/01/35 ............................................ 2,000,000 2,084,020 Bessemer Governmental Utility Services Corp. Water Supply Revenue, MBIA Insured, 5.25%, 6/01/32 .................................................................................. 5,000,000 5,154,150 Birmingham GO, Capital Improvement, Series B, AMBAC Insured, Pre-Refunded, 5.00%, 12/01/32 ................................................................................. 5,000,000 5,269,400 Birmingham Waterworks and Sewer Board Water and Sewer Revenue, Series A, FSA Insured, 5.00%, 1/01/40 ........................................................................... 11,190,000 11,600,001 Daphne Utilities Board Water Gas and Sewer Revenue, Series B, AMBAC Insured, Pre-Refunded, 5.50%, 6/01/30 ............................................................. 1,670,000 1,761,984 East Alabama Health Care Authority Health Care Facilities Revenue, Tax Anticipation Bond, Series A, MBIA Insured, 5.25%, 9/01/28 ................................................... 7,000,000 7,189,770 Foley Utilities Board Utilities Revenue, FSA Insured, 5.00%, 11/01/29 ...................... 10,720,000 11,190,393 Helena Utilities Board Water and Sewer Revenue, MBIA Insured, 5.25%, 4/01/27 .......................................................................... 1,805,000 1,926,061 5.25%, 4/01/33 .......................................................................... 2,695,000 2,875,754 Pre-Refunded, 5.25%, 4/01/27 ............................................................ 1,455,000 1,552,587 Pre-Refunded, 5.25%, 4/01/33 ............................................................ 2,195,000 2,342,219 Houston County Health Care Authority Revenue, Series A, AMBAC Insured, 5.125%, 10/01/24 ................................................................................ 5,855,000 6,178,489 10/01/25 ................................................................................ 6,065,000 6,400,091 Jefferson County Sewer Revenue, Capital Improvement, wts., Series A, FGIC Insured, Pre-Refunded, 5.125%, 2/01/29 ........ 22,050,000 22,724,068 wts., Series D, FGIC Insured, Pre-Refunded, 5.00%, 2/01/32 .............................. 12,690,000 13,335,540 Limestone County Water and Sewer Authority Water Revenue, AMBAC Insured, 5.00%, 12/01/35 ................................................................................. 9,100,000 9,482,291 Madison GO, wts., Refunding, XLCA Insured, 4.75%, 12/01/36 ................................. 10,000,000 10,060,700 Muscle Shoals GO, wts., MBIA Insured, Pre-Refunded, 5.50%, 8/01/30 ......................... 2,000,000 2,132,540 Orange Beach Sewer Revenue, wts., MBIA Insured, 5.00%, 2/01/30 ............................. 5,000,000 5,221,050 Orange Beach Water Sewer and Fire Protection Authority Revenue, MBIA Insured, 5.00%, 5/15/35 .................................................................................. 3,665,000 3,796,060 Pell City GO, wts., Refunding, XLCA Insured, 5.00%, 2/01/24 ................................................. 1,020,000 1,065,094 XLCA Insured, 5.00%, 2/01/34 ............................................................ 5,195,000 5,390,540 Tuscaloosa GO, wts., FSA Insured, 5.00%, 1/01/30 ........................................... 8,875,000 9,226,095 a University of Alabama at Birmingham Hospital Revenue, Refunding, Series A, AMBAC Insured, 5.00%, 9/01/36 ........................................................................... 20,000,000 20,870,800 University of Alabama General Revenue, Series A, MBIA Insured, 5.00%, 7/01/34 .............. 3,000,000 3,113,820 University of Alabama University Revenues, FGIC Insured, 5.25%, 10/01/27 ................... 5,975,000 6,229,834 University of South Alabama University Revenues, Tuition, Capital Improvement, AMBAC Insured, 5.00%, 12/01/30 ..................................... 7,560,000 7,920,688 Capital Improvement, Refunding, AMBAC Insured, 5.00%, 12/01/31 .......................... 7,845,000 8,213,087 Capital Improvement, Refunding, AMBAC Insured, 5.00%, 12/01/36 .......................... 10,000,000 10,453,400 --------------- 212,533,023 ---------------
82 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) ALASKA 0.2% Alaska Energy Authority Power Revenue, Bradley Lake Project, Refunding, BIG Insured, 6.25%, 7/01/21 ........................................................................... $ 5,000 $ 5,005 Alaska Energy Authority Utilities Revenue, Refunding, FSA Insured, 5.20%, 7/01/17 .......... 3,000,000 3,041,100 Alaska State HFC Revenue, Refunding, Series A, MBIA Insured, 6.00%, 6/01/27 ................ 2,230,000 2,274,600 --------------- 5,320,705 --------------- ARIZONA 2.9% Arizona State Municipal Financing Program COP, Series 1986-20, BIG Insured, ETM, 7.70%, 8/01/10 .................................................................................. 6,000,000 6,418,260 Cochise County USD No. 68 GO, Sierra Vista, Refunding, FGIC Insured, 7.50%, 7/01/10 ........ 500,000 552,080 Downtown Phoenix Hotel Corp. Revenue, Senior Series A, FGIC Insured, 5.00%, 7/01/36 ........................................... 15,000,000 15,560,550 Sub Series B, FGIC Insured, 5.00%, 7/01/36 .............................................. 6,450,000 6,691,037 Maricopa County IDA Hospital Facility Revenue, Samaritan Health Services, Series A, MBIA Insured, ETM, 7.00%, 12/01/16 ....................................................... 300,000 359,031 Mesa IDAR, Discovery Health System, Series A, MBIA Insured, Pre-Refunded, 5.75%, 1/01/25 .......................................................................... 18,000,000 19,006,200 5.625%, 1/01/29 ......................................................................... 12,655,000 13,323,943 --------------- 61,911,101 --------------- ARKANSAS 2.4% Arkansas State Development Finance Authority Water Revenue, Refunding, Series A, MBIA Insured, 6.50%, 7/01/10 ............................................................. 1,645,000 1,711,129 Arkansas State University Revenue, Arkansas State University, Beebe, Series B, AMBAC Insured, 5.00%, 12/01/30 ................................................................................ 3,250,000 3,400,930 12/01/35 ................................................................................ 3,045,000 3,177,640 Little Rock School District GO, Refunding, Series B, FSA Insured, 5.50%, 2/01/33 ........................................ 3,970,000 4,114,349 Series C, FSA Insured, 5.25%, 2/01/33 ................................................... 7,790,000 8,072,076 a Little Rock Sewer Revenue, Construction, Series A, FSA Insured, 4.75%, 6/01/37 ............. 13,105,000 13,376,798 Paragould Water and Electric Revenue, AMBAC Insured, Pre-Refunded, 5.65%, 12/01/25 ................................................................................. 1,000,000 1,059,910 Pulaski Technical College Revenue, Student Tuition and Fee, FGIC Insured, 5.00%, 9/01/34 .................................................................................. 2,190,000 2,256,948 University of Arkansas University Revenues, AMBAC Insured, 5.00%, 11/01/36 .......................................................... 8,205,000 8,586,943 Pine Bluff Campus, Refunding, Series A, AMBAC Insured, 5.00%, 12/01/35 .................. 2,000,000 2,094,340 Various Facility, Fayetteville Campus, FGIC Insured, 5.00%, 12/01/32 .................... 4,000,000 4,131,640 --------------- 51,982,703 --------------- CALIFORNIA 4.4% California State GO, AMBAC Insured, Pre-Refunded, 5.00%, 2/01/32 ............................................. 4,750,000 5,001,228 Refunding, AMBAC Insured, 5.00%, 2/01/33 ................................................ 7,000,000 7,266,000 Refunding, MBIA Insured, 5.00%, 2/01/31 ................................................. 20,000,000 20,715,400 Refunding, MBIA Insured, 5.00%, 10/01/32 ................................................ 1,910,000 1,983,019 Various Purpose, Refunding, MBIA Insured, 4.75%, 3/01/35 ................................ 34,355,000 35,092,258
Quarterly Statements of Investments | 83 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) CALIFORNIA (CONTINUED) Corona COP, Corona Community Hospital Project, Pre-Refunded, 9.425%, 9/01/20 ............... $ 15,000,000 $ 17,267,250 Oakland RDA Tax Allocation, Central District Redevelopment, Refunding, AMBAC Insured, 5.50%, 2/01/14 ........................................................................... 250,000 263,375 San Joaquin Hills Transportation Corridor Agency Toll Road Revenue, Refunding, Series A, MBIA Insured, 5.25%, 1/15/30 ............................................................. 4,000,000 4,084,080 Val Verde USD, COP, School Construction Project, Refunding, Series B, FGIC Insured, 5.00%, 1/01/35 ....................................... 1,680,000 1,749,754 Series B, FGIC Insured, Pre-Refunded, 5.00%, 1/01/35 .................................... 820,000 881,967 --------------- 94,304,331 --------------- COLORADO 1.9% Broomfield COP, Refunding, AMBAC Insured, 6.00%, 12/01/29 .................................. 3,000,000 3,147,300 Centennial Water and Sanitation District Water and Sewer Revenue, Refunding, Series A, FSA Insured, 5.125%, 12/01/17 ............................................................ 5,000,000 5,079,150 Colorado Health Facilities Authority Revenue, Community Provider Pooled Loan Program, Series A, FSA Insured, 7.25%, 7/15/17 .................................................... 26,000 26,052 Denver City and County Airport Revenue, Refunding, Series E, MBIA Insured, 5.50%, 11/15/25 ...................................... 5,000,000 5,083,150 Series C, MBIA Insured, ETM, 6.125%, 11/15/25 ........................................... 3,590,000 4,331,586 Series C, MBIA Insured, ETM, 6.125%, 11/15/25 ........................................... 4,410,000 4,438,974 E-470 Public Highway Authority Revenue, Refunding, Senior Series A, MBIA Insured, 5.00%, 9/01/21 ........................................................................... 5,000,000 5,061,000 University of Colorado Hospital Authority Revenue, Refunding, Series A, AMBAC Insured, 5.20%, 11/15/17 ......................................................................... 5,425,000 5,560,517 5.25%, 11/15/22 ......................................................................... 7,800,000 7,995,078 --------------- 40,722,807 --------------- FLORIDA 12.0% Broward County School Board COP, Series A, FSA Insured, 5.00%, 7/01/29 ..................... 5,000,000 5,201,800 Celebration CDD, Special Assessment, Series B, MBIA Insured, 5.50%, 5/01/19 ................ 210,000 213,503 Clearwater Water and Sewer Revenue, FGIC Insured, 5.00%, 12/01/28 ................................................................................ 11,050,000 11,457,413 12/01/32 ................................................................................ 13,665,000 14,148,468 Dade County Seaport Revenue, Refunding, Series E, MBIA Insured, 8.00%, 10/01/08 ............ 200,000 210,928 Florida Gulf Coast University Financing Corp. Capital Improvement Revenue, Housing Project, Series A, MBIA Insured, 5.00%, 2/01/37 ................................................... 10,000,000 10,443,300 Florida State Board of Education Capital Outlay GO, Public Education, Refunding, Series E, FGIC Insured, 5.00%, 6/01/24 ....................................... 5,000,000 5,178,350 Series B, FGIC Insured, 5.00%, 6/01/23 .................................................. 5,395,000 5,609,829 Florida State Board of Education GO, Series C, MBIA Insured, 5.00%, 6/01/27 ................ 4,245,000 4,407,201 Greater Orlando Aviation Authority Orlando Airport Facilities Revenue, Series B, FGIC Insured, 5.25%, 10/01/28 ................................................................. 2,500,000 2,586,800 Jacksonville Sales Tax Revenue, AMBAC Insured, 5.00%, 10/01/30 ............................. 5,000,000 5,144,350 Jacksonville Transportation Revenue, MBIA Insured, 5.25%, 10/01/29 ......................... 11,000,000 11,486,860 Leon County COP, AMBAC Insured, 5.00%, 7/01/25 ............................................. 8,935,000 9,338,951 Miami-Dade County Educational Facilities Authority Revenue, University of Miami, Series A, AMBAC Insured, 5.00%, 4/01/31 ............................................................ 10,000,000 10,473,700
84 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) FLORIDA (CONTINUED) Miami-Dade County Educational Facilities Authority Revenue, University of Miami, Series A, AMBAC Insured, 5.00%, 4/01/37 ............................................................ $ 28,400,000 $ 29,676,296 Miami-Dade County School Board COP, Series A, a FGIC Insured, 5.00%, 5/01/25 ............................................................ 5,000,000 5,230,400 a FGIC Insured, 5.00%, 5/01/26 ............................................................ 17,080,000 17,853,041 a FGIC Insured, 5.00%, 5/01/27 ............................................................ 10,775,000 11,253,949 FGIC Insured, 5.00%, 5/01/32 ............................................................ 10,000,000 10,403,800 Opa-Locka Capital Improvement Revenue, FGIC Insured, 6.125%, 1/01/24 ....................... 1,000,000 1,000,950 Orange County School Board COP, Series A, MBIA Insured, 5.00%, 8/01/27 ..................... 10,000,000 10,296,700 Orange County Tourist Development Tax Revenue, AMBAC Insured, Pre-Refunded, 5.25%, 10/01/27 ......................................................................... 10,000,000 10,596,700 5.50%, 10/01/31 ......................................................................... 1,000,000 1,038,520 Orlando and Orange County Expressway Authority Expressway Revenue, junior lien, FGIC Insured, 6.50%, 7/01/10 ............................................... 100,000 107,636 junior lien, FGIC Insured, 6.50%, 7/01/12 ............................................... 225,000 251,899 Series B, AMBAC Insured, 5.00%, 7/01/35 ................................................. 20,000,000 20,643,400 Osceola County School Board COP, Series A, AMBAC Insured, Pre-Refunded, 5.25%, 6/01/27 .................................................................................. 13,000,000 13,908,050 Pasco County Guaranteed Entitlement Revenue, Refunding, FSA Insured, 5.00%, 12/01/33 ................................................................................. 2,185,000 2,260,798 Pinellas County Health Facilities Authority Revenue, Baycare Health System, FSA Insured, 5.00%, 11/15/30 .......................................................................... 4,000,000 4,100,680 Polk County School Board COP, Series A, FSA Insured, 5.00%, 1/01/24 ........................ 5,000,000 5,084,200 Port St. Lucie Utility Revenue, MBIA Insured, 5.00%, 9/01/34 ............................... 8,420,000 8,740,297 Sumter County School District Revenue, Multi-District Loan Program, FSA Insured, 7.15%, 11/01/15 ................................................................................. 245,000 299,816 Sunrise Utilities System Revenue, Refunding, AMBAC Insured, 5.20%, 10/01/22 ................ 2,000,000 2,174,860 Tampa Bay Water Utility System Revenue, FGIC Insured, Pre-Refunded, 5.75%, 10/01/29 ................................................................................. 2,000,000 2,149,860 Volusia County Educational Facility Authority Revenue, Embry Riddle Aeronautical University, Refunding, Series B, AMBAC Insured, 5.25%, 10/15/19 ...................................... 3,500,000 3,634,155 --------------- 256,607,460 --------------- GEORGIA 6.3% Athens Housing Authority Student Housing Lease Revenue, University of Georgia, East Campus, Refunding, AMBAC Insured, 5.00%, 12/01/33 ................................... 6,000,000 6,224,160 Atlanta Airport Revenue, General, Series A, FGIC Insured, Pre-Refunded, 5.50%, 1/01/26 ..... 13,750,000 14,442,037 Atlanta GO, Refunding, FGIC Insured, 5.00%, 12/01/20 ....................................... 3,775,000 3,837,778 Atlanta Water and Wastewater Revenue, Series A, FGIC Insured, 5.00%, 11/01/29 ......................................................................... 4,750,000 4,862,575 Pre-Refunded, 5.00%, 11/01/29 ........................................................... 5,250,000 5,385,135 Brunswick Water and Sewer Revenue, Refunding and Improvement, MBIA Insured, 6.10%, 10/01/14 ................................................................................. 1,535,000 1,705,277 Cherokee County Water and Sewage Authority Revenue, FGIC Insured, 5.00%, 8/01/27 ............................................................ 1,500,000 1,545,765 MBIA Insured, 6.90%, 8/01/18 ............................................................ 15,000 15,039 Columbus Building Authority Lease Revenue, Series A, FGIC Insured, 5.00%, 1/01/31 .......... 3,500,000 3,652,215
Quarterly Statements of Investments | 85 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) GEORGIA (CONTINUED) East Point Building Authority Revenue, Water and Sewer Project, Series A, XLCA Insured, 5.00%, 2/01/30 ........................................................................... $ 11,360,000 $ 11,920,616 Fulton County Development Authority Revenue, Georgia Institute of Technology Athletic Assn., Refunding, AMBAC Insured, 5.125%, 10/01/32 ............................................... 9,000,000 9,327,690 Georgia Medical Center Hospital Authority Revenue, Anticipation Certificates, Columbus Regional Healthcare Systems, MBIA Insured, 5.50%, 8/01/19 ................................ 15,000,000 15,725,250 Henry County Water and Sewer Authority Revenue, FGIC Insured, Pre-Refunded, 5.625%, 2/01/30 .................................................................................. 3,500,000 3,691,380 Metropolitan Atlanta Rapid Transit Authority Sales Tax Revenue, Second Indenture Series, MBIA Insured, Pre-Refunded, 5.00%, 7/01/27 ................................................................................. 13,470,000 14,219,067 7/01/28 ................................................................................. 14,175,000 14,963,272 7/01/32 ................................................................................. 8,575,000 9,051,856 Rockdale County Water and Sewer Authority Revenue, Series A, MBIA Insured, Pre-Refunded, 5.375%, 7/01/29 .......................................................................... 6,350,000 6,650,355 South Fulton Municipal Regional Water and Sewer Authority Water Revenue, MBIA Insured, 5.00%, 1/01/33 ........................................................................... 8,000,000 8,282,640 --------------- 135,502,107 --------------- HAWAII 0.5% Hawaii County GO, Refunding and Improvement, Series A, FGIC Insured, 5.60%, 5/01/12 ................................................................................. 1,000,000 1,076,580 5/01/13 ................................................................................. 1,000,000 1,088,860 Honolulu City and County GO, Refunding, Series C, FGIC Insured, 5.00%, 7/01/20 ............. 6,250,000 6,441,812 Kauai County GO, Series A, FGIC Insured, Pre-Refunded, 6.125%, 8/01/23 ..................... 1,755,000 1,875,165 --------------- 10,482,417 --------------- ILLINOIS 0.6% Chicago Board of Education GO, Chicago School Reform, Series A, AMBAC Insured, 5.25%, 12/01/30 ................................................................................. 2,000,000 2,051,400 Chicago Board of Education Lease COP, Refunding, Series A, MBIA Insured, 6.25%, 1/01/09 .................................................................................. 320,000 331,843 Illinois Health Facilities Authority Revenue, Northwestern Medical Facility Foundation, Refunding, MBIA Insured, 5.125%, 11/15/28 .............................................................................. 5,000,000 5,096,400 Series 1990, FSA Insured, ETM, 7.75%, 8/15/10 ........................................... 50,000 55,884 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 4,276,334 Regional Transportation Authority Revenue, Series A, AMBAC Insured, 7.20%, 11/01/20 ........ 300,000 364,899 --------------- 12,176,760 --------------- KANSAS 0.0% b Kansas State Development Finance Authority Health Facilities Revenue, Stormont Vail Healthcare Inc., Refunding, Series G, MBIA Insured, 5.80%, 11/15/21 ...................... 5,000 5,008 --------------- KENTUCKY 1.7% Jefferson County Capital Projects Corp. Revenue, Lease, MBIA Insured, Pre-Refunded, 5.375%, 6/01/22 ......................................................................... 2,000,000 2,040,000 5.50%, 6/01/28 .......................................................................... 750,000 765,000
86 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) KENTUCKY (CONTINUED) Kentucky Economic Development Finance Authority Health System Revenue, Norton Healthcare Inc., Refunding, Series C, MBIA Insured, 6.05%, 10/01/20 ...................................... $ 8,505,000 $ 9,495,747 Series C, MBIA Insured, Pre-Refunded, 6.05%, 10/01/20 ................................... 4,255,000 4,801,385 Series C, MBIA Insured, Pre-Refunded, 6.15%, 10/01/26 ................................... 12,195,000 13,639,498 Louisville and Jefferson County Metropolitan Sewer District Sewer and Drain System Revenue, Series A, MBIA Insured, 5.50%, 5/15/34 ................................................... 5,000,000 5,342,300 --------------- 36,083,930 --------------- LOUISIANA 1.2% Louisiana Local Government Environmental Facilities and CDA Revenue, Parking Facilities Corp. Garage Project, Series A, AMBAC Insured, 5.375%, 10/01/31 .......................... 5,485,000 5,739,175 Louisiana State Gas and Fuels Tax Revenue, Series A, AMBAC Insured, 5.00%, 6/01/27 ........................................................... 10,000,000 10,302,200 FSA Insured, 4.75%, 5/01/39 ............................................................. 10,000,000 10,122,800 --------------- 26,164,175 --------------- MAINE 0.0% b Maine State Health and Higher Educational Facilities Authority Revenue, Series C, FSA Insured, 6.20%, 7/01/25 .............................................................. 100,000 100,177 --------------- MARYLAND 1.6% Baltimore Convention Center Hotel Revenue, Senior Series A, XLCA Insured, 5.00%, 9/01/32 .................................................................................. 10,000,000 10,474,000 Baltimore Project Revenue, Wastewater Projects, Refunding, FGIC Insured, 5.125%, 7/01/42 ................................................ 11,000,000 11,399,080 Series C, AMBAC Insured, Pre-Refunded, 5.00%, 7/01/36 ................................... 5,000,000 5,389,000 Baltimore Revenue, Water Project, Series A, FSA Insured, Pre-Refunded, 5.75%, 7/01/30 .................................................................................. 5,880,000 6,209,339 Maryland State Health and Higher Educational Facilities Authority Revenue, University of Maryland Medical System, Series B, FGIC Insured, 7.00%, 7/01/22 .......................... 200,000 254,054 --------------- 33,725,473 --------------- MASSACHUSETTS 3.7% Central Berkshire Religious School District GO, Series B, FSA Insured, 5.125%, 3/01/18 .................................................................................. 1,125,000 1,146,634 Massachusetts State Development Finance Agency Revenue, Boston University, Series T-1, AMBAC Insured, 5.00%, 10/01/35 ........................................................... 10,000,000 10,456,300 Massachusetts State GO, Consolidated Loan, Series D, MBIA Insured, ETM, 5.00%, 8/01/27 ..................................................................... 3,535,000 3,719,916 Pre-Refunded, 5.00%, 8/01/27 ............................................................ 855,000 899,725 Massachusetts State Health and Educational Facilities Authority Revenue, Caregroup Issue, Series A, MBIA Insured, 5.00%, 7/01/25 ................................. 4,250,000 4,366,663 Caregroup Issue, Series A, MBIA Insured, Pre-Refunded, 5.00%, 7/01/25 ................... 750,000 820,770 Central New England Health, Series B, AMBAC Insured, 5.20%, 8/01/28 ..................... 4,415,000 4,527,273 Central New England Health, Series B, AMBAC Insured, Pre-Refunded, 5.20%, 8/01/28 ............................................................................... 585,000 604,252 Harvard Pilgrim Health, Series A, FSA Insured, 5.00%, 7/01/18 ........................... 3,000,000 3,059,850
Quarterly Statements of Investments | 87 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) MASSACHUSETTS (CONTINUED) Massachusetts State Health and Educational Facilities Authority Revenue, (continued) Partners Healthcare System, Series A, MBIA Insured, 5.375%, 7/01/24 ..................... $ 9,700,000 $ 9,805,536 Simmons College, Series C, MBIA Insured, 5.125%, 10/01/28 ............................... 8,000,000 8,188,160 Massachusetts State Industrial Finance Agency Revenue, Suffolk University, AMBAC Insured, Pre-Refunded, 5.25%, 7/01/17 ............................................................. 3,000,000 3,063,180 Massachusetts State Port Authority Revenue, Special Facilities, Bosfuel Project, MBIA Insured, 5.625%, 7/01/20 ................................................................................. 1,590,000 1,623,295 7/01/21 ................................................................................. 1,560,000 1,592,666 7/01/23 ................................................................................. 2,155,000 2,200,126 7/01/24 ................................................................................. 2,910,000 2,970,935 Massachusetts State Turnpike Authority Metropolitan Highway System Revenue, sub. lien, Refunding, Series B, MBIA Insured, 5.125%, 1/01/37 ....................................... 2,100,000 2,143,995 Massachusetts State Water Resources Authority Revenue, Refunding, Series J, FSA Insured, 5.00%, 8/01/32 ........................................................................... 18,000,000 18,509,040 --------------- 79,698,316 --------------- MICHIGAN 10.7% Allen Park Public School District GO, School Building and Site, MBIA Insured, Pre-Refunded, 5.00%, 5/01/33 ............................................................... 8,430,000 8,910,088 Bendle Public School District GO, School Building and Site, Refunding, FGIC Insured, 5.00%, 5/01/35 ........................................................................... 3,875,000 4,056,273 Birmingham City School District GO, School Building and Site, FSA Insured, 5.00%, 11/01/33 ................................................................................. 8,135,000 8,497,821 Central Michigan University Revenue, Series A, AMBAC Insured, 5.05%, 10/01/32 .............. 8,650,000 9,000,411 Chippewa Valley Schools GO, AMBAC Insured, Pre-Refunded, 5.00%, 5/01/27 ............................................. 1,000,000 1,011,530 School Building and Site, FSA Insured, 5.00%, 5/01/34 ................................... 5,000,000 5,211,850 Detroit City School District GO, Series A, FSA Insured, Pre-Refunded, 5.125%, 5/01/31 ...... 6,500,000 6,852,170 Detroit Public Improvements GO, Series A-1, MBIA Insured, 5.00%, 4/01/21 ................... 12,390,000 12,772,355 Detroit Sewage Disposal Revenue, senior lien, Series A, FGIC Insured, Pre-Refunded, 5.125%, 7/01/31 .......................................................................... 6,000,000 6,285,600 Detroit Sewage Disposal Revenue, senior lien, Refunding, Series A, FSA Insured, 5.00%, 7/01/32 ........................................ 2,905,000 3,004,729 Series A, FSA Insured, Pre-Refunded, 5.00%, 7/01/32 ..................................... 7,095,000 7,509,206 Detroit Water Supply System Revenue, senior lien, Series A, FGIC Insured, Pre-Refunded, 5.25%, 7/01/33 .............................................. 10,185,000 10,709,527 FGIC Insured, Pre-Refunded, 5.25%, 7/01/33 .............................................. 9,815,000 10,328,030 MBIA Insured, 5.00%, 7/01/34 ............................................................ 10,150,000 10,520,373 Ecorse Public School District GO, FGIC Insured, Pre-Refunded, 5.50%, 5/01/27 ............... 7,250,000 7,435,673 Grand Rapids Sanitation Sewer System Revenue, FGIC Insured, 5.00%, 1/01/34 ................. 18,285,000 19,012,560 Jackson County Hospital Finance Authority Revenue, W.A. Foote Memorial Hospital, Series A, AMBAC Insured, 5.25%, 6/01/17 ............................................................ 500,000 510,590 Jonesville Community Schools GO, Refunding, MBIA Insured, 5.00%, 5/01/29 ................... 3,050,000 3,200,030 Lanse Creuse Public Schools GO, School Building and Site, FSA Insured, 5.00%, 5/01/35 .................................................................................. 10,000,000 10,423,700 Michigan Municipal Bond Authority Revenue, Clean Water Revolving, MBIA Insured, 5.00%, 10/01/23 ................................................................................. 5,095,000 5,240,055
88 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) MICHIGAN (CONTINUED) Michigan State Building Authority Revenue, Refunding, Series IA, FGIC Insured, 5.00%, 10/15/36 ................................................................................. $ 10,000,000 $ 10,440,200 Michigan State Hospital Finance Authority Revenue, Hospital Botsford Obligation, Refunding, Series A, MBIA Insured, 5.25%, 2/15/22 ......... 2,000,000 2,054,220 Oakwood Obligation Group, Refunding, Series A, FSA Insured, 5.00%, 8/15/31 .............. 10,000,000 10,137,700 Refunding, MBIA Insured, 5.00%, 11/15/36 ................................................ 13,000,000 13,412,230 St. John's Hospital, Series A, AMBAC Insured, ETM, 6.00%, 5/15/13 ....................... 2,500,000 2,579,425 Michigan State Strategic Fund Limited Obligation Revenue, Collateral, The Detroit Edison Co., Fund, Pollution, Refunding, Series BB, AMBAC Insured, 7.00%, 5/01/21 ................ 250,000 318,568 Michigan State Strategic Fund Resources Recovery Limited Obligation Revenue, Detroit Education Exempt Facilities, Refunding, Series D, XLCA Insured, 5.25%, 12/15/32 .......... 10,000,000 10,422,900 Michigan State Trunk Line Revenue, Series A, FSA Insured, Pre-Refunded, 5.25%, 11/01/30 ................................................................................. 20,000,000 21,107,400 Royal Oak Hospital Finance Authority Revenue, William Beaumont Hospital, Series M, MBIA Insured, 5.25%, 11/15/31 ............................................................ 4,000,000 4,148,880 Saginaw Valley State University Revenue, Refunding, AMBAC Insured, 5.30%, 7/01/28 .......... 3,400,000 3,517,198 --------------- 228,631,292 --------------- MINNESOTA 4.3% Eden Prairie MFHR, Olympic Ridge, Refunding, Series A, GNMA Secured, 6.25%, 1/20/31 .................................................................................. 2,000,000 2,018,980 Medford ISD No. 763 GO, Series A, FSA Insured, 5.125%, 2/01/26 ............................. 2,475,000 2,578,084 Minneapolis and St. Paul Metropolitan Airports Commission Airport Revenue, Refunding, Sub Series A, AMBAC Insured, 5.00%, 1/01/35 .................................. 18,700,000 19,378,810 Series C, FGIC Insured, Pre-Refunded, 5.25%, 1/01/26 .................................... 8,000,000 8,378,400 Series C, FGIC Insured, Pre-Refunded, 5.25%, 1/01/32 .................................... 4,500,000 4,712,850 Minneapolis Special School District No. 001 COP, Refunding, Series B, FGIC Insured, 4.625%, 2/01/17 .......................................................................... 1,635,000 1,672,703 Minnesota Agriculture and Economic Development Board Revenue, Health Care System, Refunding, Series A, MBIA Insured, 5.75%, 11/15/26 ...................................... 180,000 185,049 Series A, MBIA Insured, Pre-Refunded, 5.75%, 11/15/26 ................................... 12,100,000 12,450,295 Minnesota State HFAR, Rental Housing, Refunding, Series D, MBIA Insured, 6.00%, 2/01/22 .................................................................................. 180,000 180,400 Robbinsdale ISD No. 281 GO, MBIA Insured, 5.00%, 2/01/22 ................................... 7,340,000 7,483,203 Sauk Rapids ISD No. 47 GO, Series A, MBIA Insured, 5.75%, 2/01/26 .......................... 11,850,000 12,593,587 South Washington County ISD No. 833 GO, Series B, FSA Insured, 5.00%, 2/01/22 ................................................................................. 10,970,000 11,369,857 2/01/23 ................................................................................. 6,000,000 6,216,120 Woodbury COP, Series A, AMBAC Insured, 5.35%, 2/01/21 ...................................... 2,915,000 3,015,276 --------------- 92,233,614 --------------- MISSISSIPPI 0.5% Harrison County Wastewater Management District Revenue, Wastewater Treatment Facilities, Refunding, Series A, FGIC Insured, 8.50%, 2/01/13 ........................................ 200,000 241,594 Mississippi Development Bank Special Obligation Revenue, Municipal Energy Agency, Series A, XLCA Insured, 5.00%, 3/01/36 ................................................... 10,915,000 11,329,006 --------------- 11,570,600 ---------------
Quarterly Statements of Investments | 89 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) MISSOURI 0.3% Springfield Public Utility Revenue, FGIC Insured, 4.75%, 8/01/34 ........................... $ 6,000,000 $ 6,106,680 St. Louis School District GO, FGIC Insured, Pre-Refunded, 6.00%, 4/01/12 ................... 1,330,000 1,340,214 --------------- 7,446,894 --------------- MONTANA 0.4% Montana State Board of Workers Compensation Investment Program Revenue, MBIA Insured, ETM, 6.875%, 6/01/20 ..................................................................... 8,500,000 8,782,625 --------------- NEBRASKA 1.2% Lancaster County Hospital Authority Revenue, Bryan Memorial Hospital Project No. 1, MBIA Insured, ETM, 6.70%, 6/01/22 ........................................................ 2,500,000 3,005,100 Public Power Generation Agency Revenue, Whelan Energy Center Unit 2, Series A, AMBAC Insured, 5.00%, 1/01/32 ............................................................ 21,515,000 22,513,941 --------------- 25,519,041 --------------- NEVADA 0.7% Clark County GO, Series A, AMBAC Insured, 6.50%, 6/01/17 ................................... 250,000 297,643 Clark County School District GO, Series A, MBIA Insured, 7.00%, 6/01/10 .................... 4,000,000 4,341,920 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 5,273,000 Truckee Meadows Water Authority Revenue, Series A, FSA Insured, Pre-Refunded, 5.125%, 7/01/30 .................................................................................. 5,000,000 5,238,000 --------------- 15,150,563 --------------- NEW JERSEY 1.8% Essex County Improvement Authority Revenue, Garden State Cancer Center Project, AMBAC Insured, 6.00%, 12/01/20 ........................................................... 2,525,000 2,553,482 Middlesex County COP, MBIA Insured, 5.30%, 6/15/29 ......................................... 3,575,000 3,695,084 New Brunswick Parking Authority Revenue, Guaranteed Parking, Series A, MBIA Insured, 5.00%, 9/01/34 ........................................................................... 1,500,000 1,550,820 New Jersey EDA Revenue, Motor Vehicle Surcharge Revenue, Series A, MBIA Insured, 5.00%, 7/01/29 ................. 3,450,000 3,610,805 Motor Vehicle Surcharge Revenue, Series A, MBIA Insured, 5.00%, 7/01/34 ................. 21,250,000 22,200,937 Municipal Rehabilitation, Series A, AMBAC Insured, 5.00%, 4/01/28 ....................... 4,000,000 4,138,480 New Jersey State Turnpike Authority Turnpike Revenue, 2005, Refunding, Series C, AMBAC Insured, 6.50%, 1/01/16 ................................ 50,000 57,093 2005, Series C, AMBAC Insured, ETM, 6.50%, 1/01/16 ...................................... 20,000 22,914 Series C, AMBAC Insured, Pre-Refunded, 6.50%, 1/01/16 ................................... 230,000 263,511 --------------- 38,093,126 --------------- NEW YORK 4.3% Central Square GO, Central School District, FGIC Insured, ETM, 6.50%, 6/15/10 .............. 900,000 970,209 Dutchess County IDA Civic Facility Revenue, Bard College Project, AMBAC Insured, 5.375%, 6/01/27 .................................................................................. 3,945,000 4,025,320 MTA Revenue, Series B, MBIA Insured, 5.00%, 11/15/28 ....................................... 20,000,000 20,814,400 MTA Service Contract Revenue, Series B, MBIA Insured, 5.00%, 1/01/31 ....................... 7,000,000 7,237,090 Nassau Health Care Corp. Health System Revenue, Nassau County Guaranteed, FSA Insured, Pre-Refunded, 5.75%, 8/01/29 ............................................................. 5,000,000 5,303,700
90 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) NEW YORK (CONTINUED) New York City Transitional Finance Authority Revenue, Future Tax Secured, Refunding, Series B, MBIA Insured, 5.00%, 8/01/32 ....................................... $ 2,230,000 $ 2,323,303 Series A, FGIC Insured, 5.125%, 8/01/33 ................................................. 14,590,000 15,363,124 New York State Dormitory Authority Revenues, Mental Health Services Facilities Improvement, Series B, MBIA Insured, Pre-Refunded, 5.25%, 8/15/31 ........................................................................ 5,935,000 6,272,524 Pace University, MBIA Insured, Pre-Refunded, 5.70%, 7/01/22 ............................. 7,500,000 7,660,650 Pace University, MBIA Insured, Pre-Refunded, 5.75%, 7/01/26 ............................. 2,500,000 2,553,650 State Supported Debt, Mental Health Services Facilities Improvement, Series B, MBIA Insured, 5.25%, 8/15/31 ............................................................... 5,535,000 5,775,496 State Supported Debt, Mental Health Services Facilities Improvement, Series B, MBIA Insured, Pre-Refunded, 5.25%, 8/15/31 ................................................. 3,530,000 3,730,751 Vassar Brothers Hospital, FSA Insured, 5.375%, 7/01/25 .................................. 4,000,000 4,110,040 Triborough Bridge and Tunnel Authority Revenues, Refunding, MBIA Insured, 5.00%, 11/15/32 ................................................................................. 5,000,000 5,190,300 Upper Mohawk Valley Regional Water Finance Authority Water Systems Revenue, Series A, FSA Insured, Pre-Refunded, 5.125%, 10/01/26 .............................................. 1,495,000 1,517,036 --------------- 92,847,593 --------------- NORTH CAROLINA 0.7% North Carolina Medical Care Commission Hospital Revenue, Rex Healthcare Project, AMBAC Insured, 5.00%, 6/01/17 ............................................................ 5,000,000 5,104,350 North Carolina Municipal Power Agency No. 1 Catawba Electric Revenue, MBIA Insured, ETM, 6.50%, 1/01/10 ...................................................................... 20,000 21,311 Raleigh Durham Airport Authority Airport Revenue, Series A, FGIC Insured, 5.00%, 11/01/25 ................................................................................ 5,000,000 5,164,300 11/01/31 ................................................................................ 4,000,000 4,120,720 --------------- 14,410,681 --------------- 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 5,514,024 --------------- OHIO 5.7% Akron Income Tax Revenue, Community Learning Centers, Series A, FGIC Insured, 5.00%, 12/01/33 ................................................................................. 5,000,000 5,196,350 Cleveland Airport System Revenue, Series A, FSA Insured, 5.125%, 1/01/27 ......................................................................... 4,000,000 4,054,200 5.00%, 1/01/31 .......................................................................... 13,780,000 14,063,868 Pre-Refunded, 5.00%, 1/01/31 ............................................................ 1,625,000 1,687,059 Cleveland Waterworks Revenue, 2005, Refunding and Improvement, Series I, FSA Insured, 5.00%, 1/01/23 .................. 1,460,000 1,482,484 2005, Improvement, Series I, FSA Insured, Pre-Refunded, 5.00%, 1/01/23 .................. 1,290,000 1,312,304 Columbus City School District GO, School Facilities Construction and Improvement, FGIC Insured, Pre-Refunded, 5.00%, 12/01/28 ................................................................................ 8,000,000 8,474,720 12/01/31 ................................................................................ 10,295,000 10,905,905
Quarterly Statements of Investments | 91 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) OHIO (CONTINUED) Elyria GO, FGIC Insured, Pre-Refunded, 5.40%, 12/01/17 ..................................... $ 2,400,000 $ 2,420,496 Fairview Park City School District GO, School Improvement, MBIA Insured, 5.00%, 12/01/29 ................................................................................ 1,460,000 1,531,496 12/01/33 ................................................................................ 2,000,000 2,093,800 Hamilton County Sales Tax Revenue, Hamilton County Football, Project B, MBIA Insured, Pre-Refunded, 5.00%, 12/01/27 ............................................................ 3,250,000 3,323,255 Hamilton Wastewater System Revenue, Series A, FSA Insured, Pre-Refunded, 5.15%, 10/15/17 ................................................................................. 3,015,000 3,102,676 Jefferson Area Local School District GO, School Facilities Construction and Improvement, FGIC Insured, 5.00%, 12/01/31 ............................................................ 4,085,000 4,279,405 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 3,669,782 Lucas County Hospital Revenue, Promedica Healthcare Obligation Group, Refunding, AMBAC Insured, 5.375%, 11/15/29 .......................................................... 5,000,000 5,173,100 Maumee City School District GO, School Facilities Construction and Improvement, FSA Insured, 5.00%, 12/01/27 ............................................................. 3,250,000 3,388,840 Medina City School District GO, FGIC Insured, Pre-Refunded, 5.25%, 12/01/28 ................ 7,500,000 7,770,375 Ohio State GO, Common Schools, FSA Insured, 5.00%, 9/15/21 ................................. 3,230,000 3,360,815 Olentangy Local School District GO, School Facilities Construction and Improvement, Series A, FGIC Insured, Pre-Refunded, 5.25%, 12/01/32 .................................... 11,450,000 12,380,313 Reynoldsburg City School District GO, School Facilities Construction and Improvement, FSA Insured, 5.00%, 12/01/31 ............................................................. 4,000,000 4,172,440 Springfield City School District GO, FGIC Insured, Pre-Refunded, 5.20%, 12/01/23 ........... 3,860,000 4,142,938 Streetsboro City School District GO, School Improvement, MBIA Insured, Pre-Refunded, 5.125%, 12/01/21 ......................................................................... 3,700,000 3,897,432 Toledo City School District GO, School Facilities Improvement, Series B, FGIC Insured, 5.00%, 12/01/32 .......................................................................... 4,000,000 4,161,640 University of Cincinnati COP, University Center Project, MBIA Insured, Pre-Refunded, 5.125%, 6/01/24 .......................................................................... 2,950,000 2,950,000 West Holmes Local School District GO, MBIA Insured, Pre-Refunded, 5.375%, 12/01/17 ......... 3,100,000 3,131,000 --------------- 122,126,693 --------------- OKLAHOMA 0.1% McGee Creek Authority Water Revenue, MBIA Insured, 6.00%, 1/01/23 .......................... 300,000 348,114 Okmulgee County Governmental Building Authority Sales Tax Revenue, first mortgage, MBIA Insured, Pre-Refunded, 6.20%, 3/01/20 ............................................... 1,625,000 1,686,344 --------------- 2,034,458 --------------- OREGON 0.7% Josephine County School District No. 7 GO, FGIC Insured, 5.70%, 6/01/13 .................... 5,000,000 5,000,000 Ontario Catholic Health Revenue, Holy Rosary Medical Center, MBIA Insured, 5.50%, 11/15/12 ................................................................................. 700,000 705,628 Oregon Health and Science University Revenue, Refunding, Series B, MBIA Insured, 5.25%, 7/01/15 ....................................... 460,000 465,092 Series A, MBIA Insured, 5.00%, 7/01/32 .................................................. 8,000,000 8,274,640 --------------- 14,445,360 ---------------
92 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) PENNSYLVANIA 1.4% Allegheny County Hospital Development Authority Revenue, Health System, Series A, MBIA Insured, Pre-Refunded, 6.50%, 11/15/30 .............................................. $ 10,000,000 $ 11,039,400 Pennsylvania Convention Center Authority Revenue, Series A, FGIC Insured, ETM, 6.00%, 9/01/19 .................................................................................. 500,000 585,555 Philadelphia Gas Works Revenue, 1998 General Ordinance, Fourth Series, FSA Insured, 5.00%, 8/01/32 ........................................................................... 4,000,000 4,138,880 Philadelphia Water and Wastewater Revenue, Series A, FGIC Insured, Pre-Refunded, 5.25%, 11/01/24 ................................................................................. 2,000,000 2,135,400 Pittsburgh and Allegheny County Public Auditorium Revenue, Regional Asset District Sales Tax, AMBAC Insured, 5.25%, 2/01/31 ....................................................... 6,000,000 6,198,120 Pittsburgh Water and Sewer Authority Revenue, FGIC Insured, ETM, 7.25%, 9/01/14 ............ 85,000 94,402 State Public School Building Authority School Revenue, Philadelphia School District Project, FSA Insured, Pre-Refunded, 5.00%, 6/01/33 ................................................ 5,000,000 5,296,700 --------------- 29,488,457 --------------- RHODE ISLAND 0.8% Providence GO, Series A, FSA Insured, Pre-Refunded, 5.70%, 7/15/19 ......................... 3,000,000 3,036,510 Rhode Island Clean Water Finance Agency Revenue, Cranston Wastewater Treatment System, MBIA Insured, 5.80%, 9/01/22 ............................................................. 7,785,000 7,969,738 Rhode Island State EDC Special Facility Revenue, first lien, Rhode Island Airport Corp. Project, CIFG Insured, 5.00%, 7/01/31 .................................................... 5,730,000 5,958,627 Rhode Island State Health and Educational Building Corp. Revenue, Hospital Financing, Lifespan Obligation Group, Refunding, MBIA Insured, 5.75%, 5/15/23 ....................... 100,000 102,161 --------------- 17,067,036 --------------- SOUTH CAROLINA 0.4% Piedmont Municipal Power Agency Electric Revenue, Refunding, FGIC Insured, 6.25%, 1/01/21 .................................................................................. 200,000 239,776 Richland County Hospital Facilities Revenue, Community Provider, Pooled Loan Program, Series A, FSA Insured, ETM, 7.125%, 7/01/17 .............................................. 2,760,000 3,111,817 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 5,256,650 Spartanburg Sanitation Sewer District Sewer System Revenue, MBIA Insured, Pre-Refunded, 5.50%, 6/01/27 ........................................................................... 500,000 505,000 --------------- 9,113,243 --------------- SOUTH DAKOTA 0.6% Brookings COP, Refunding, AMBAC Insured, 5.10%, 12/01/18 ................................... 5,000,000 5,161,000 Grant County PCR, Refunding, MBIA Insured, 5.90%, 6/01/23 .................................. 4,800,000 4,808,448 South Dakota Lease Revenue, Series A, FSA Insured, 6.75%, 12/15/16 ......................... 2,720,000 3,047,733 --------------- 13,017,181 --------------- TENNESSEE 0.5% 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 8,709,865 Series 2000 A, MBIA Insured, Pre-Refunded, 5.125%, 7/01/25 .............................. 2,780,000 2,847,665 --------------- 11,557,530 ---------------
Quarterly Statements of Investments | 93 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) TEXAS 8.6% Austin Hotel Occupancy Tax Revenue, sub. lien, AMBAC Insured, Pre-Refunded, 5.625%, 11/15/21 ........................................................................ $ 2,355,000 $ 2,457,160 5.80%, 11/15/29 ......................................................................... 13,750,000 14,402,162 Austin Water and Wastewater System Revenue, Refunding, Series B, FSA Insured, 5.125%, 5/15/27 ......................................................................... 11,125,000 11,495,240 5.25%, 5/15/31 .......................................................................... 5,000,000 5,181,550 Bell County Health Facilities Development Corp. Revenue, Hospital, Cook Children's Medical Center, Refunding, FSA Insured, 5.30%, 12/01/23 .......................................... 5,000,000 5,185,100 Coastal Bend Health Facilities Development Corp. Revenue, Series B, AMBAC Insured, ETM, 6.30%, 1/01/17 ........................................................................... 11,305,000 12,399,776 Dallas-Fort Worth International Airport Revenue, Joint Series A, FGIC Insured, 6.00%, 11/01/21 ........................................... 2,210,000 2,302,577 Refunding and Improvement, Joint Series A, FGIC Insured, 5.625%, 11/01/21 ............... 12,000,000 12,631,440 Harris County Health Facilities Development Corp. Revenue, Christus Health, Series A, MBIA Insured, Pre-Refunded, 5.375%, 7/01/29 .............................................. 22,000,000 22,900,460 Harris County Hospital District Mortgage Revenue, AMBAC Insured, 7.40%, 2/15/10 .......................................................................... 735,000 775,182 ETM, 7.40%, 2/15/10 ..................................................................... 215,000 224,742 Harris County Houston Sports Authority Revenue, senior lien, Series G, MBIA Insured, 5.25%, 11/15/30 .......................................................................... 21,325,000 22,162,433 Houston Airport System Revenue, sub. lien, Refunding, Series B, FSA Insured, 5.50%, 7/01/30 .................................................................................. 4,700,000 4,881,091 Houston Water and Sewer System Revenue, junior lien, Series B, FGIC Insured, Pre-Refunded, 5.75%, 12/01/30 ................................... 10,000,000 10,614,700 Series C, FGIC Insured, Pre-Refunded, 5.375%, 12/01/27 .................................. 6,800,000 6,922,400 Laredo ISD Public Facility Corp. Lease Revenue, Series C, AMBAC Insured, 5.00%, 8/01/29 .................................................................................. 1,000,000 1,024,410 Matagorda County Navigation District No. 1 Revenue, Houston Industries Inc. Project, Refunding, Series A, MBIA Insured, 5.25%, 11/01/29 ................................................. 3,185,000 3,222,679 Series B, MBIA Insured, 5.15%, 11/01/29 ................................................. 2,750,000 2,778,820 North Harris County Regional Water Authority Revenue, senior lien, FGIC Insured, 5.00%, 12/15/33 ................................................................................. 10,000,000 10,337,100 Palo Duro River Authority GO, Refunding, FSA Insured, 6.375%, 8/01/08 ...................... 2,605,000 2,642,356 Pflugerville GO, FGIC Insured, 5.25%, 8/01/27 .......................................................................... 3,320,000 3,486,166 5.20%, 8/01/32 .......................................................................... 3,000,000 3,129,120 Portland Community Center Complex Development Corp. Sales Tax Revenue, Refunding, AMBAC Insured, 5.45%, 2/15/25 ............................................................ 1,450,000 1,466,950 San Marcos Waterworks and Sewer Systems Revenue, Series 1998, FSA Insured, Pre-Refunded, 5.125%, 8/15/20 ............................................................ 2,870,000 2,877,864 Smithville HDC Mortgage Revenue, Smithville Retirement, Refunding, Series A, MBIA Insured, 6.40%, 1/01/22 ............................................................. 855,000 864,499
94 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) TEXAS (CONTINUED) Tarrant County Health Facilities Development Corp. Health Systems Revenue, Harris Methodist Health System, MBIA Insured, ETM, 6.00%, 9/01/24 ........................ $ 3,250,000 $ 3,777,345 Tyler Health Facilities Development Corp. Hospital Revenue, East Texas Medical Center Project, Series B, FSA Insured, 5.50%, 11/01/17 .................................................. 1,000,000 1,025,130 Series C, FSA Insured, 5.60%, 11/01/27 .................................................. 1,430,000 1,467,337 Series D, FSA Insured, 5.375%, 11/01/27 ................................................. 8,500,000 8,815,520 United ISD, GO, 5.125%, 8/15/26 ............................................................ 3,000,000 3,115,350 --------------- 184,566,659 --------------- UTAH 0.6% Intermountain Power Agency Power Supply Revenue, Series B, MBIA Insured, Pre-Refunded, 5.75%, 7/01/19 .............................................. 950,000 970,349 Refunding, MBIA Insured, 5.75%, 7/01/19 ................................................. 2,300,000 2,349,082 Provo Electric System Revenue, Series A, AMBAC Insured, ETM, 10.375%, 9/15/15 .............. 35,000 44,114 Utah County Hospital Revenue, IHC Health Services Inc., MBIA Insured, ETM, 5.25%, 8/15/21 ................................................................................. 5,000,000 5,065,500 8/15/26 ................................................................................. 5,000,000 5,061,650 --------------- 13,490,695 --------------- VIRGINIA 0.8% Front Royal and Warren County IDA Lease Revenue, School and Capital Improvement, Series B, FSA Insured, 5.00%, 4/01/35 .................................................... 6,000,000 6,256,500 Middle River Regional Jail Authority Jail Facility Revenue, MBIA Insured, 5.00%, 5/15/28 .................................................................................. 3,510,000 3,681,007 Spotsylvania County Water and Sewer System Revenue, MBIA Insured, Pre-Refunded, 5.40%, 6/01/27 .................................................................................. 3,850,000 3,927,000 Winchester IDA Educational Facilities Revenue, first mortgage, Shenandoah University Project, MBIA Insured, 5.00%, 10/01/18 ......................................................................... 1,000,000 1,029,510 5.25%, 10/01/28 ......................................................................... 1,420,000 1,471,745 --------------- 16,365,762 --------------- WASHINGTON 2.1% King County Sewer Revenue, Refunding, Series A, FGIC Insured, 5.00%, 1/01/35 ............... 6,420,000 6,626,531 Pierce County GO, School District No. 003 Puyallup, FGIC Insured, Pre-Refunded, 5.70%, 12/01/15 ................................................................................. 1,000,000 1,009,840 Port of Longview GO, MBIA Insured, 6.00%, 11/01/15 ......................................... 2,000,000 2,003,560 Seattle Water System Revenue, FGIC Insured, Pre-Refunded, 5.625%, 8/01/26 .................. 2,000,000 2,045,660 Snohomish County PUD No. 1 Electric Revenue, Generation System, FGIC Insured, ETM, 6.65%, 1/01/16 ........................................................................... 4,250,000 4,846,913 Tacoma GO, Series A, MBIA Insured, Pre-Refunded, 5.625%, 12/01/22 .......................... 3,400,000 3,432,232 Washington State GO, Various Purpose, Series C, FSA Insured, 5.25%, 1/01/26 ................ 6,000,000 6,251,220 Washington State Health Care Facilities Authority Revenue, Providence Services, MBIA Insured, Pre-Refunded, 5.50%, 12/01/26 ........................ 5,000,000 5,251,650 Swedish Health Services, Refunding, AMBAC Insured, 5.50%, 11/15/28 ...................... 13,000,000 13,387,920 --------------- 44,855,526 ---------------
Quarterly Statements of Investments | 95 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) WEST VIRGINIA 2.0% Harrison County Community Solid Waste Disposal Revenue, Potomac Edison Co., Series C, AMBAC Insured, 6.75%, 8/01/24 ............................................................ $ 11,560,000 $ 11,588,438 Shepherd University Board of Governors Revenue, Residence Facilities Projects, MBIA Insured, 5.00%, 6/01/35 ........................................................................... 9,445,000 9,849,057 West Virginia State GO, Series A, FGIC Insured, Pre-Refunded, 5.00%, 11/01/21 .............. 5,000,000 5,183,750 West Virginia State Water Development Authority Water Development Revenue, Loan Program II, Refunding, Series C-II, FGIC Insured, 5.00%, 11/01/36 ................... 5,000,000 5,187,350 West Virginia Water Development Authority Infrastructure Revenue, West Virginia Infrastructure Jobs Program, Series A, FSA Insured, 4.75%, 10/01/45 ...................... 11,405,000 11,472,632 --------------- 43,281,227 --------------- WISCONSIN 0.2% Superior Limited Obligation Revenue, Midwest Energy Resources, Refunding, Series E, FGIC Insured, 6.90%, 8/01/21 ............................................................. 3,000,000 3,802,050 --------------- U.S. TERRITORY 0.0% b DISTRICT OF COLUMBIA 0.0% b District of Columbia HFA, RMR, Series 1986-1, FGIC Insured, 7.75%, 9/01/16 ................. 150,000 151,667 --------------- TOTAL LONG TERM INVESTMENTS (COST $2,044,137,630) .......................................... 2,122,884,090 --------------- SHORT TERM INVESTMENTS 2.8% MUNICIPAL BONDS 2.8% FLORIDA 0.5% c Brevard County Health Facilities Authority Revenue, Wuesthoff Memorial Hospital Project, Weekly VRDN and Put, 3.78%, 8/01/31 ...................................................... 4,610,000 4,610,000 c Jacksonville Health Facilities Authority Hospital Revenue, Baptist Medical Center Project, Daily VRDN and Put, 3.87%, 8/15/21 ...................... 2,205,000 2,205,000 Genesis Rehabilitation Hospital, Refunding, Daily VRDN and Put, 3.90%, 5/01/21 .......... 990,000 990,000 Series C, Daily VRDN and Put, 3.87%, 8/15/33 ............................................ 2,100,000 2,100,000 --------------- 9,905,000 --------------- GEORGIA 0.3% c Hapeville IDAR, Hapeville Hotel Ltd., Daily VRDN and Put, 3.88%, 11/01/15 .................. 5,700,000 5,700,000 --------------- LOUISIANA 0.2% c Louisiana State Offshore Terminal Authority Deepwater Port Revenue, Loop Inc. Project, First Stage, ACES, Refunding, Daily VRDN and Put, 3.90%, 9/01/17 ......................... 4,600,000 4,600,000 --------------- MARYLAND 0.0% b c Maryland State EDC Revenue, Multi-Modal, U.S. Pharmacopeial, AMBAC Insured, Daily VRDN and Put, 3.90%, 7/01/36 .................................................................. 700,000 700,000 --------------- MASSACHUSETTS 0.4% c Massachusetts State GO, Consolidated Loan, Series B, Daily VRDN and Put, 3.85%, 3/01/26 .................................................................................. 7,075,000 7,075,000 c Massachusetts State Health and Educational Facilities Authority Revenue, Capital Assets Program, Series D, MBIA Insured, Daily VRDN and Put, 3.88%, 1/01/35 ...................... 2,500,000 2,500,000 --------------- 9,575,000 --------------- MINNESOTA 0.1% c Minneapolis GO, Library, Weekly VRDN and Put, 3.61%, 12/01/32 .............................. 1,310,000 1,310,000 ---------------
96 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- SHORT TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) NEW YORK 0.6% c New York City Municipal Water Finance Authority Water and Sewer System Revenue, Series C, FGIC Insured, Daily VRDN and Put, 3.88%, 6/15/23 .............................. $ 3,700,000 $ 3,700,000 Series G, FGIC Insured, Daily VRDN and Put, 3.86%, 6/15/24 .............................. 7,000,000 7,000,000 c New York City Transitional Finance Authority Revenue, New York City Recovery, Refunding, Series 3, Sub Series 3 E, Daily VRDN and Put, 3.83%, 11/01/22 ............................ 3,125,000 3,125,000 --------------- 13,825,000 --------------- PENNSYLVANIA 0.2% c Chester County IDAR, Refunding, Daily VRDN and Put, 3.85%, 7/01/31 ......................... 1,300,000 1,300,000 c Emmaus General Authority Revenue, FSA Insured, Weekly VRDN and Put, 3.78%, 12/01/28 ................................................................................. 300,000 300,000 c Pennsylvania State Higher Educational Facilities Authority College and University Revenues, Pennsylvania College of Optometry, Refunding, Weekly VRDN and Put, 3.81%, 3/01/26 ........ 630,000 630,000 c Philadelphia Authority for Industrial Development Revenues, Newcourtland Elder Services Project, Daily VRDN and Put, 3.85%, 3/01/27 .............................................. 630,000 630,000 c York General Authority Pooled Financing Revenue, Sub Series A, AMBAC Insured, Weekly VRDN and Put, 3.78%, 9/01/26 ...................................................... 620,000 620,000 --------------- 3,480,000 --------------- VIRGINIA 0.3% c Virginia Small Business Financing Authority Revenue, Childrens Hospital Kings, Weekly VRDN and Put, 3.76%, 1/01/36 ...................................................... 5,955,000 5,955,000 --------------- WASHINGTON 0.2% c Washington State Housing Finance Commission Nonprofit Housing Revenue, Franke Tobey Jones Project, Daily VRDN and Put, 3.81%, 9/01/33 .......................... 2,835,000 2,835,000 YMCA of Greater Seattle, Daily VRDN and Put, 3.92%, 7/01/11 ............................. 2,200,000 2,200,000 --------------- 5,035,000 --------------- TOTAL SHORT TERM INVESTMENTS (COST $60,085,000) ............................................ 60,085,000 --------------- TOTAL INVESTMENTS (COST $2,104,222,630) 101.8% ............................................. 2,182,969,090 OTHER ASSETS, LESS LIABILITIES (1.8)% ...................................................... (38,810,684) --------------- NET ASSETS 100.0% .......................................................................... $ 2,144,158,406 ===============
See Selected Portfolio Abbreviations on page 176. a Security purchased on a when-issued or delayed delivery basis. b Rounds to less than 0.1% of net assets. c Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. Quarterly Statements of Investments | See Notes to Statements of Investments. | 97 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN KENTUCKY TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS 96.9% MUNICIPAL BONDS 96.9% KENTUCKY 81.2% Bellevue GO, Public Project, Harbor Greene Project, XLCA Insured, 5.00%, 2/01/34 ........... $ 1,065,000 $ 1,104,575 Boone County GO, Public Project, 5.00%, 4/01/20 ................................................................................. 1,310,000 1,365,112 4/01/21 ................................................................................. 1,000,000 1,039,850 Boone County PCR, Collateralized, Dayton Power and Light Co., Refunding, Series A, FGIC Insured, 4.70%, 1/01/28 ............................................................. 3,000,000 3,032,040 Boone Florence Water Commission Water Supply Systems Revenue, Refunding, FGIC Insured, 5.00%, 12/01/22 ................................................................................ 1,200,000 1,250,352 12/01/27 ................................................................................ 2,000,000 2,078,920 Bowling Green ISD Finance Corp. School Building Revenue, 5.75%, 1/01/20 .................... 1,140,000 1,199,417 Campbell and Kenton Counties Sanitation District No.1 Sanitation District Revenue, Series A, FSA Insured, 5.00%, 8/01/19 ................................................................................. 1,500,000 1,564,215 8/01/24 ................................................................................. 2,000,000 2,073,360 Campbell County School District Finance Corp. School Building Revenue, FSA Insured, 5.00%, 8/01/26 .................................................................................. 2,845,000 3,000,878 Christian County Public Courthouse Corp. Lease Revenue, District Court Facilities Project, Pre-Refunded, 5.125%, 8/01/20 ............................................................ 1,015,000 1,066,471 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 2,049,400 Fayette County School District Finance Corp. School Building Revenue, Pre-Refunded, 5.50%, 9/01/18 ............................................................ 2,500,000 2,618,050 Refunding, Series B, FSA Insured, 4.00%, 1/01/17 ........................................ 500,000 498,805 Series A, AMBAC Insured, 5.25%, 4/01/20 ................................................. 2,160,000 2,278,757 Florence GO, Public Project, Series A, FGIC Insured, 5.00%, 11/01/32 ....................... 1,000,000 1,031,520 Greater Kentucky Housing Assistance Corp. Mortgage Revenue, Section 8 Assisted Projects, Refunding, Series A, MBIA Insured, 6.10%, 1/01/24 ........................................ 405,000 405,401 Hardin County School District Finance Corp. School Building Revenue, Pre-Refunded, 5.75%, 2/01/20 .................................................................................. 1,500,000 1,586,715 Hardin County Water District No. 2 Water System Revenue, Series A, AMBAC Insured, 5.00%, 1/01/31 .................................................................................. 2,620,000 2,681,937 Harlan County Justice Center Revenue, First Judicial Center Project, AMBAC Insured, 5.00%, 3/01/25 .................................................................................. 1,330,000 1,386,232 Henry County Water District No. 2 Water Revenue, Refunding, MBIA Insured, 4.75%, 1/01/28 .................................................................................. 2,035,000 2,065,627 Jefferson County Health Facilities Revenue, Jewish Hospital Healthcare Services Inc., Refunding, AMBAC Insured, 5.75%, 1/01/26 ................................................. 1,000,000 1,021,400 Jefferson County School District Financial Corp. School Building Revenue, Series A, FSA Insured, Pre-Refunded, 5.25%, 7/01/18 ................................................ 1,500,000 1,566,390 Kenton County Airport Board Airport Revenue, Cincinnati/Northern Kentucky International Airport, Series B, MBIA Insured, 5.75%, 3/01/13 .......................................... 1,230,000 1,244,231 Kentucky Area Development Districts Financing Trust Lease Acquisition Program COP, Series L, XLCA Insured, 5.00%, 11/01/29 ......................................................... 1,000,000 1,048,900 Kentucky Area Development Districts Financing Trust Lease Program Revenue, City of Ewing, Series A, 6.00%, 6/01/30 ................................................................ 2,000,000 2,158,940 Series C, 6.00%, 6/01/30 ................................................................ 1,285,000 1,380,308 Series E, 5.70%, 6/01/22 ................................................................ 1,000,000 1,071,070
98 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN KENTUCKY TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) KENTUCKY (CONTINUED) Kentucky Asset/Liability Commission General Receipts Revenue, University of Kentucky, Project Notes, FGIC Insured, 5.00%, 10/01/25 ............................................. $ 3,000,000 $ 3,177,720 Kentucky Economic Development Finance Authority Health System Revenue, Norton Healthcare Inc., Refunding, Series C, MBIA Insured, 6.15%, 10/01/24 ...................................... 160,000 178,952 Series C, MBIA Insured, Pre-Refunded, 6.15%, 10/01/24 ................................... 245,000 277,823 Series C, MBIA Insured, Pre-Refunded, 6.15%, 10/01/25 ................................... 935,000 1,045,751 Kentucky Economic Development Finance Authority Hospital System Revenue, Appalachian Regional Health Center Facility, Refunding and Improvement, 5.875%, 10/01/22 ............. 2,000,000 2,016,580 Kentucky Economic Development Finance Authority Revenue, Catholic Health Project, Refunding and Improvement, Series A, Pre-Refunded, 5.00%, 12/01/18 ....................... 2,000,000 2,043,700 Kentucky Housing Corp. Housing Revenue, Refunding, Series P, 4.60%, 7/01/34 ..................................................... 1,205,000 1,197,758 Series A, 4.60%, 7/01/32 ................................................................ 2,000,000 1,953,380 Series U, 4.90%, 7/01/32 ................................................................ 4,115,000 4,138,826 Kentucky Infrastructure Authority Revenue, Series A, 5.00%, 6/01/19 ................................................................................. 1,140,000 1,180,367 6/01/20 ................................................................................. 1,250,000 1,292,400 6/01/21 ................................................................................. 1,190,000 1,229,032 Kentucky Rural Water Finance Corp. Public Project Revenue, Flexible Term Program, Series A, 5.00%, 2/01/26 ......................................... 1,055,000 1,092,199 Multimodal, Flexible Term Program, Series I, 5.00%, 2/01/34 ............................. 1,500,000 1,551,885 Kentucky State Property and Buildings Commission Revenues, Project No. 62, Refunding, Second Series, 5.25%, 10/01/18 ............................... 3,540,000 3,701,566 Project No. 64, MBIA Insured, Pre-Refunded, 5.50%, 5/01/17 .............................. 1,535,000 1,597,260 Project No. 69, Series A, FSA Insured, Pre-Refunded, 5.00%, 8/01/21 ..................... 2,300,000 2,403,270 Project No. 77, MBIA Insured, Pre-Refunded, 5.00%, 8/01/23 .............................. 1,100,000 1,166,836 Kentucky State Turnpike Authority Economic Development Road Revenue, Revitalization Project, Series A, AMBAC Insured, 5.00%, 7/01/25 ......................................... 2,000,000 2,107,120 Lawrenceburg Water and Sewer Revenue, MBIA Insured, 5.00%, 10/01/28 ........................ 1,730,000 1,802,141 Louisville and Jefferson County Metropolitan Government Industrial Building Revenue, Sisters of Mercy, Cincinnati, 5.00%, 10/01/35 ............................................ 1,500,000 1,531,275 Louisville and Jefferson County Metropolitan Sewer District Sewer and Drainage System Revenue, Series A, AMBAC Insured, 5.00%, 5/15/36 ........................................................... 3,000,000 3,143,130 FGIC Insured, 5.00%, 5/15/30 ............................................................ 2,750,000 2,796,282 FGIC Insured, 5.00%, 5/15/38 ............................................................ 3,000,000 3,134,310 Louisville and Jefferson County Student Housing Revenue, University of Louisville, Phase 3-A, AMBAC Insured, 5.00%, 6/01/34 ........................................................... 3,755,000 3,931,109 Series A, AMBAC Insured, 5.00%, 6/01/25 ................................................. 1,000,000 1,053,120 Louisville Parking Authority of River City Revenue, MBIA Insured, 5.00%, 6/01/29 ........... 3,290,000 3,407,354 Louisville Waterworks Board Water System Revenue, Louisville Water Co., Refunding, FSA Insured, 5.25%, 11/15/24 ......................................................................... 2,500,000 2,598,750 5.50%, 11/15/25 ......................................................................... 2,000,000 2,093,620 McCracken County Hospital Revenue, Mercy Health System, Refunding, Series A, MBIA Insured, 6.40%, 11/01/07 .......................................................................... 500,000 501,045
Quarterly Statements of Investments | 99 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN KENTUCKY TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) KENTUCKY (CONTINUED) Murray Hospital Facilities Revenue, Murray, Calloway County Public Hospital, 5.125%, 8/01/37 .................................................................................. $ 3,000,000 $ 3,046,110 Northern Kentucky University COP, AMBAC Insured, 5.00%, 12/01/27 ........................... 1,500,000 1,556,040 Northern Kentucky Water Service District Revenue, MBIA Insured, 4.875%, 2/01/20 ............ 1,270,000 1,300,467 Oldham County School District Finance Corp. School Building Revenue, MBIA Insured, 5.00%, 5/01/24 .................................................................................. 5,680,000 5,949,743 Russell Health System Revenue, Our Lady of Bellefonte, Pre-Refunded, 5.50%, 7/01/15 ........ 800,000 824,592 Trimble County Environmental Facilities Revenue, Trimble County Environmental Facility, Refunding, AMBAC Insured, 4.60%, 6/01/33 ................................................. 5,000,000 4,888,700 Warren County Hospital Facility Revenue, Community Hospital Corp. Project, Refunding, Series A, 5.00%, 8/01/29 ................................................................. 1,000,000 1,007,860 --------------- 122,786,946 --------------- U.S. TERRITORIES 15.7% PUERTO RICO 12.9% Children's Trust Fund Puerto Rico Tobacco Settlement Revenue, Asset-Backed Bonds, Refunding, 5.375%, 5/15/33 ............................................................... 1,735,000 1,810,959 Puerto Rico Commonwealth GO, Public Improvement, Series A, 5.125%, 7/01/31 ......................................................................... 3,125,000 3,200,344 Pre-Refunded, 5.125%, 7/01/31 ........................................................... 1,875,000 1,968,581 Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Series D, Pre-Refunded, 5.375%, 7/01/36 ................................................. 2,500,000 2,677,650 Series K, 5.00%, 7/01/27 ................................................................ 3,000,000 3,114,900 Puerto Rico Municipal Finance Agency Revenue, Series A, FSA Insured, 5.00%, 8/01/30 ....... 5,000,000 5,259,450 Puerto Rico PBA Guaranteed Revenue, Government Facilities, Refunding, Series D, 5.25%, 7/01/36 ..................................................... 455,000 471,976 Series D, Pre-Refunded, 5.25%, 7/01/36 .................................................. 995,000 1,057,655 --------------- 19,561,515 --------------- VIRGIN ISLANDS 2.8% Virgin Islands PFAR, Gross Receipts Taxes Loan Notes, FGIC Insured, 5.00%, 10/01/28 .......................... 2,000,000 2,120,680 senior lien, Fund Loan Notes, Refunding, Series A, 5.625%, 10/01/25 ..................... 2,000,000 2,053,780 --------------- 4,174,460 --------------- TOTAL U.S. TERRITORIES ..................................................................... 23,735,975 --------------- TOTAL LONG TERM INVESTMENTS (COST $142,039,180) ............................................ 146,522,921 ---------------
100 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN KENTUCKY TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- SHORT TERM INVESTMENTS 1.7% MUNICIPAL BONDS 1.7% KENTUCKY 1.7% a Berea Educational Facilities Revenue, Series A, Daily VRDN and Put, 3.92%, 6/01/32 ......... $ 495,000 $ 495,000 a Breckinridge County Lease Program Revenue, Kentucky Assn. Counties Leasing Trust, Series A, Weekly VRDN and Put, 3.88%, 2/01/32 ..................................................... 1,200,000 1,200,000 a Shelby County Lease Revenue, Series A, Daily VRDN and Put, 3.88%, 9/01/34 .................. 900,000 900,000 --------------- TOTAL SHORT TERM INVESTMENTS (COST $2,595,000) ............................................. 2,595,000 --------------- TOTAL INVESTMENTS (COST $144,634,180) 98.6% ................................................ 149,117,921 OTHER ASSETS, LESS LIABILITIES 1.4% ........................................................ 2,122,312 --------------- NET ASSETS 100.0% .......................................................................... $ 151,240,233 ===============
See Selected Portfolio Abbreviations on page 176. a Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. Quarterly Statements of Investments | See Notes to Statements of Investments. | 101 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN LOUISIANA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS 97.2% MUNICIPAL BONDS 97.2% LOUISIANA 92.3% Bossier City Public Improvement Sales and Use Tax Revenue, FGIC Insured, Pre-Refunded, 5.00%, 12/01/19 ................................................................................ $ 1,145,000 $ 1,169,457 12/01/21 ................................................................................ 1,875,000 1,915,050 12/01/22 ................................................................................ 1,515,000 1,547,360 Bossier Parish Sales and Use Tax Revenue, AMBAC Insured, 5.00%, 7/01/20 .................... 1,900,000 1,992,701 Calcasieu Parish Public Trust Authority Student Lease Revenue, McNeese Student Housing Project, MBIA Insured, 5.25%, 5/01/21 ................................................................................. 1,505,000 1,578,549 5/01/33 ................................................................................. 2,500,000 2,601,700 De Soto Parish Environmental Improvement Revenue, International Paper Co. Project, Series A, 5.65%, 12/01/21 ................................................................ 1,000,000 1,016,430 De Soto Parish PCR, Cleco Utility Group Inc. Project, Refunding, AMBAC Insured, 5.875%, 9/01/29 .......................................................................... 11,500,000 12,187,470 Denham Spring Livingston Housing and Mortgage Finance Authority SFHR, Series A, FHA Insured, ETM, 7.20%, 8/01/10 ............................................................. 1,380,000 1,515,171 East Baton Rouge Mortgage Finance Authority Revenue, SFM Purchase, Refunding, Series A, 6.10%, 10/01/29 ....................................................................... 175,000 176,038 East Baton Rouge Parish Park and Recreation District GO, FSA Insured, 5.00%, 5/01/25 ....... 3,325,000 3,468,141 East Baton Rouge Parish Sales and Use Tax Revenue, Public Improvement, Series ST, FGIC Insured, Pre-Refunded, 5.00%, 2/01/20 .................................................... 1,000,000 1,048,560 East Baton Rouge Parish Sales Tax Revenue, Public Improvement, Refunding, Series A,AMBAC Insured, 5.00%, 2/01/24 .......................................................... 2,000,000 2,091,720 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 5,126,650 Greater New Orleans Expressway Commission Revenue, Refunding, AMBAC Insured, 5.00%, 11/01/27 .......................................................................... 5,000,000 5,188,300 Jefferson Parish Revenue, Public Improvement, 24th Judicial District Project, MBIA Insured, 5.00%, 4/01/29 .................................................................. 3,060,000 3,177,963 Jefferson Parish West Jefferson Park and Community Center Revenue, MBIA Insured, 5.00%, 10/01/29 .......................................................................... 2,925,000 3,044,808 Jefferson Sales Tax District Special Sales Tax Revenue, AMBAC Insured, 5.00%, 12/01/22 .......................................................... 2,000,000 2,100,140 Refunding, FSA Insured, 5.00%, 12/01/22 ................................................. 3,000,000 3,086,160 Special Tax Bond, AMBAC Insured, 5.00%, 12/01/20 ........................................ 4,195,000 4,397,409 Lafayette Public Trust Financing Authority Revenue, Ragin' Cajun Facilities Inc. Project, MBIA Insured, 5.00%, 10/01/22 ................................................... 1,500,000 1,570,065 Lafayette Public Trust Financing Authority SFMR, Series A, ETM, 7.20%, 4/01/11 ............. 30,000 33,380 Lafayette Utilities Revenue, MBIA Insured, 5.00%, 11/01/28 ................................. 5,000,000 5,210,100 Lafourche Parish Home Mortgage Authority SFMR, ETM, 7.40%, 7/01/10 ......................... 55,000 57,567 Livingston Parish Waterworks Revenue, Ward Two Water District, AMBAC Insured, 5.125%, 4/01/29 .......................................................................... 2,200,000 2,340,272 Louisiana HFA Mortgage Revenue, SF, Series A-1, GNMA Secured, 5.45%, 12/01/20 .............. 495,000 501,420 Louisiana Local Government Environmental Facilities and CDA Revenue, Baton Rouge Apartments, Series A, MBIA Insured, 6.375%, 1/01/30 ......................... 4,265,000 4,501,025 Delgado Community College Foundation Project, AMBAC Insured, 6.00%, 10/01/29 ............ 1,000,000 1,063,950 Denham Springs Sewer Project, AMBAC Insured, 4.75%, 12/01/31 ............................ 5,040,000 5,101,438
102 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN LOUISIANA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) LOUISIANA (CONTINUED) Louisiana Local Government Environmental Facilities and CDA Revenue, (continued) Jefferson Parking Garage Project, AMBAC Insured, 5.00%, 9/01/21 ......................... $ 2,215,000 $ 2,281,273 Lake Charles Public Improvements Projects, AMBAC Insured, 5.00%, 5/01/27 ................ 5,000,000 5,250,900 Livingston Parish Road, AMBAC Insured, 5.00%, 3/01/21 ................................... 4,040,000 4,268,058 MBIA Insured, 5.00%, 12/01/26 ........................................................... 3,000,000 3,100,200 Parking Facilities Corp. Garage Project, Series A, AMBAC Insured, 5.375%, 10/01/26 ...... 2,000,000 2,095,100 Parking Facilities Corp. Garage Project, Series A, AMBAC Insured, 5.375%, 10/01/31 ...... 2,000,000 2,092,680 Southeastern Louisiana Student Housing, Series A, MBIA Insured, 5.00%, 8/01/27 .......... 3,000,000 3,107,430 Louisiana Local Government Environmental Facilities GO, AMBAC Insured, 5.25%, 4/01/29 ...... 1,000,000 1,062,480 Louisiana Public Facilities Authority Hospital Revenue, Franciscan Missionaries, Series C, MBIA Insured, 5.00%, 7/01/19 ......................... 595,000 606,805 Franciscan Missionaries, Series C, MBIA Insured, Pre-Refunded, 5.00%, 7/01/19 ........... 3,155,000 3,229,332 Pendleton Memorial Methodist, Pre-Refunded, 5.25%, 6/01/28 .............................. 4,500,000 4,609,170 Touro Infirmary Project, Series A, 5.625%, 8/15/29 ...................................... 6,000,000 5,913,480 Louisiana Public Facilities Authority Revenue, Archdiocese of New Orleans Project, Refunding, CIFG Insured, 5.00%, 7/01/31 ............. 5,000,000 5,175,900 Centenary College Project, Refunding, 5.75%, 2/01/29 .................................... 7,300,000 7,512,503 Dillard University Project, Refunding, AMBAC Insured, 5.00%, 2/01/18 .................... 1,500,000 1,539,855 Dillard University Project, Series A, AMBAC Insured, 5.30%, 8/01/26 ..................... 1,540,000 1,619,895 FHA Insured Mortgage, Baton Rouge General, MBIA Insured, 5.25%, 7/01/33 ................. 5,000,000 5,280,600 Grambling University Project, Black and Gold Facilities Project, Series A, CIFG Insured, 5.00%, 7/01/30 ............................................................... 5,000,000 5,203,250 Mortgage Purchase, HFA, Refunding, Series A, FNMA Insured, 6.40%, 7/20/20 ............... 1,900,000 1,908,835 Ochsner Clinic Foundation Project, Refunding, Series B, 5.75%, 5/15/23 .................. 2,500,000 2,656,000 Tulane University, Refunding, Series A, AMBAC Insured, 5.125%, 7/01/27 .................. 3,000,000 3,174,630 a Tulane University Project, Refunding, Series A-1, MBIA Insured, 5.00%, 2/15/30 .......... 3,500,000 3,678,185 Xavier University of Louisiana Project, Refunding, MBIA Insured, 5.25%, 9/01/17 ......... 1,000,000 1,023,100 Xavier University of Louisiana Project, Refunding, MBIA Insured, 5.25%, 9/01/27 ......... 6,015,000 6,149,977 Louisiana State Citizens Property Insurance Corp. Assessment Revenue, Series B, AMBAC Insured, 5.00%, 6/01/23 .................................................................. 5,000,000 5,228,300 Louisiana State Gas and Fuels Tax Revenue, Series A, AMBAC Insured, 5.00%, 6/01/27 ........................................................... 3,500,000 3,605,770 FGIC Insured, 5.00%, 5/01/27 ............................................................ 2,000,000 2,090,180 FSA Insured, 5.00%, 5/01/31 ............................................................. 10,000,000 10,467,800 Louisiana State GO, Match, Refunding, Series B, CIFG Insured, 5.00%, 7/15/24 ................................................................................. 3,475,000 3,643,260 7/15/25 ................................................................................. 2,765,000 2,894,651 Louisiana State Office Facilities Corp. Lease Revenue, Capital Complex Program, AMBAC Insured, 5.00%, 5/01/21 ........................................................... 2,500,000 2,585,500 Series A, MBIA Insured, 5.375%, 3/01/19 ................................................. 3,000,000 3,098,490 Louisiana State University and Agricultural and Mechanical College Board Revenue, AMBAC Insured, 5.00%, 7/01/22 ........................................................... 5,000,000 5,237,400 Auxiliary, FGIC Insured, 5.00%, 7/01/31 ................................................. 3,000,000 3,142,500 Auxiliary, Series B, AMBAC Insured, 5.00%, 7/01/27 ...................................... 1,500,000 1,561,545 Monroe Sales and Use Tax Revenue, FGIC Insured, 5.25%, 7/01/23 ............................. 1,535,000 1,637,845
Quarterly Statements of Investments | 103 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN LOUISIANA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) LOUISIANA (CONTINUED) New Orleans GO, Drain Systems, AMBAC Insured, 5.00%, 12/01/18 ........................................... $ 1,000,000 $ 1,015,610 Public Improvement, AMBAC Insured, 5.25%, 12/01/29 ...................................... 1,485,000 1,564,789 Public Improvement, FGIC Insured, 5.25%, 12/01/21 ....................................... 1,295,000 1,361,680 Public Improvement, FGIC Insured, 5.125%, 12/01/26 ...................................... 2,000,000 2,068,340 Refunding, MBIA Insured, 5.125%, 9/01/21 ................................................ 2,000,000 2,084,140 Orleans Levee District Revenue, Levee Improvement, Refunding, FSA Insured, 5.95%, 11/01/14 .......................................................................... 580,000 589,715 Orleans Parish Parishwide School District GO, Refunding, Series B, FGIC Insured, 5.50%, 9/01/20 ........................................................................... 1,000,000 1,011,400 Orleans Parish School Board GO, Series 95, FGIC Insured, 5.375%, 9/01/18 ................... 1,950,000 1,952,691 Ouachita Parish Hospital Service District No. 1 Revenue, Glenwood Regional Medical Center, Refunding, FSA Insured, 5.75%, 5/15/21 ........................................... 2,500,000 2,634,525 Ouachita Parish West Ouachita Parish School District Sales and Use Tax Revenue, FGIC Insured, Pre-Refunded, 5.75%, 9/01/24 .................................................... 1,410,000 1,517,921 Rapides Parish Housing and Mortgage Finance Authority Revenue, SFM Purchase, FHA Insured, ETM, 7.25%, 8/01/10 ............................................................. 595,000 622,447 Shreveport Certificates of Indebtedness Revenue, Refunding, Series A, AMBAC Insured, 5.00%, 10/01/16 .......................................................................... 1,000,000 1,041,740 St. Bernard Home Mortgage Authority Revenue, SF, Series A, FGIC Insured, ETM, 7.50%, 9/01/10 ........................................................................... 435,000 483,576 St. Charles Parish Consolidated Waterworks and Wastewater District No. 1 Revenue, Series A, AMBAC Insured, 5.00%, 7/01/31 .................................................. 6,485,000 6,782,532 St. John's Baptist Parish EDR, USX Corp. Project, Refunding, 5.35%, 12/01/13 ............... 2,500,000 2,575,175 St. Tammany's Public Trust Financing Authority SFMR, Series A, ETM, 7.20%, 7/01/10 ................................................................................. 40,000 41,646 7/01/11 ................................................................................. 50,000 56,316 State Colleges and Universities Lease Revenue, University of Southwestern Louisiana, Cajundome, MBIA Insured, Pre-Refunded, 5.65%, 9/01/26 ......................... 3,080,000 3,155,491 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 2,318,629 University of Louisiana System Board of Supervisors Lease Revenue, LaFayette Cajundome Convention, MBIA Insured, Pre-Refunded, 6.25%, 9/01/29 .............. 1,200,000 1,286,652 Northwestern State University Wellness, AMBAC Insured, 5.10%, 4/01/24 ................... 1,000,000 1,033,200 --------------- 241,740,088 --------------- U.S. TERRITORIES 4.9% PUERTO RICO 3.7% Puerto Rico Commonwealth GO, Public Improvement, MBIA Insured, Pre-Refunded, 5.75%, 7/01/26 .............................................. 4,400,000 4,643,848 Series A, 5.00%, 7/01/33 ................................................................ 2,000,000 2,051,480 Puerto Rico Electric Power Authority Power Revenue, Series TT, 5.00%, 7/01/32 .............. 3,000,000 3,120,300 --------------- 9,815,628 --------------- VIRGIN ISLANDS 1.2% Virgin Islands PFAR, senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/18 .... 3,000,000 3,078,630 --------------- TOTAL U.S. TERRITORIES ..................................................................... 12,894,258 --------------- TOTAL LONG TERM INVESTMENTS (COST $247,162,973) ............................................ 254,634,346 ---------------
104 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN LOUISIANA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- SHORT TERM INVESTMENTS 2.6% MUNICIPAL BONDS 2.6% LOUISIANA 2.6% b Louisiana Public Facilities Authority Revenue, Kenner Hotel Ltd., Daily VRDN and Put, 3.88%, 12/01/15 .......................................................................... $ 6,500,000 $ 6,500,000 b Louisiana State Offshore Terminal Authority Deepwater Port Revenue, Loop Inc. Project, First Stage, ACES, Refunding, Daily VRDN and Put, 3.90%, 9/01/17 ................ 300,000 300,000 --------------- TOTAL SHORT TERM INVESTMENTS (COST $6,800,000) ............................................. 6,800,000 --------------- TOTAL INVESTMENTS (COST $253,962,973) 99.8% ................................................ 261,434,346 OTHER ASSETS, LESS LIABILITIES 0.2% ........................................................ 518,466 --------------- NET ASSETS 100.0% .......................................................................... $ 261,952,812 ===============
See Selected Portfolio Abbreviations on page 176. a Security purchased on a when-issued or delayed delivery basis. b Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. Quarterly Statements of Investments | See Notes to Statements of Investments. | 105 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN MARYLAND TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS 97.5% MUNICIPAL BONDS 97.5% MARYLAND 83.6% Anne Arundel County GO, Refunding, 4.625%, 3/01/32 ........................................ $ 2,000,000 $ 2,046,920 Baltimore Convention Center Hotel Revenue, Senior Series A, XLCA Insured, 5.25%, 9/01/39 ................................................................................. 25,095,000 26,717,894 Baltimore County Metropolitan 68th District GO, Refunding, 5.00%, 8/01/32 ................. 1,000,000 1,043,750 Baltimore GO, Consolidated Public Improvement, Series A, FGIC Insured, Pre-Refunded, 5.30%, 10/15/17 .................................. 1,500,000 1,538,460 Series A, FSA Insured, Pre-Refunded, 5.25%, 10/15/17 ................................... 3,300,000 3,473,448 Series B, 7.15%, 10/15/08 .............................................................. 1,000,000 1,045,190 Baltimore Port Facilities Revenue, Consolidated Coal Sales, Refunding, Series A, 6.50%, 10/01/11 ................................................................................ 1,850,000 1,929,180 Baltimore Project Revenue, Wastewater Projects, Refunding, FGIC Insured, 5.125%, 7/01/42 .......................... 7,630,000 7,906,816 Wastewater Projects, Series B, FGIC Insured, Pre-Refunded, 5.00%, 7/01/28 .............. 4,000,000 4,119,640 Wastewater Projects, Series B, MBIA Insured, Pre-Refunded, 5.00%, 7/01/35 .............. 2,600,000 2,790,762 Wastewater Projects, Series C, AMBAC Insured, 5.00%, 7/01/31 ........................... 5,000,000 5,275,850 Wastewater Projects, Series C, AMBAC Insured, Pre-Refunded, 5.00%, 7/01/36 ............. 6,125,000 6,601,525 Water Projects, Series A, MBIA Insured, Pre-Refunded, 5.00%, 7/01/35 ................... 4,240,000 4,551,089 Baltimore Revenue, Wastewater Project, Series A, FGIC Insured, Pre-Refunded, 5.80%, 7/01/15 ............... 5,000,000 5,205,400 Water Project, Series A, FSA Insured, Pre-Refunded, 5.75%, 7/01/30 ..................... 10,000,000 10,560,100 Carroll County Revenue, Fairhaven and Copper Ridge, Refunding, Series A, Radian Insured, 5.375%, 1/01/16 ........................................................................ 2,000,000 2,064,560 5.50%, 1/01/19 ......................................................................... 1,000,000 1,026,760 5.625%, 1/01/25 ........................................................................ 2,000,000 2,073,060 Harford County GO, Consolidated Public Improvement, 4.45%, 1/15/17 ........................ 1,125,000 1,151,314 Maryland Environmental Services COP, Water and Waste Facilities, Series A, 6.70%, 6/01/11 ................................................................................. 1,900,000 1,904,617 Maryland State CDA Department of Housing and CDR, Housing, Series A, 6.00%, 7/01/32 ...................................................... 4,000,000 4,096,200 Residential, Series D, 5.25%, 9/01/29 .................................................. 3,325,000 3,360,677 Series B, 5.35%, 9/01/30 ............................................................... 755,000 764,128 SF Program, First Series, 5.00%, 4/01/17 ............................................... 10,000 10,202 SF Program, Second Series, 5.00%, 4/01/17 .............................................. 3,000,000 3,061,890 Maryland State EDC Student Housing Revenue, University of Maryland Baltimore County Project, Refunding, XLCA Insured, 5.00%, 7/01/30 .............................................................................. 3,245,000 3,416,531 University of Maryland Baltimore County Project, Refunding, XLCA Insured, 5.00%, 7/01/35 .............................................................................. 3,675,000 3,843,940 University of Maryland College Park Projects, Refunding, CIFG Insured, 5.00%, 6/01/25 .. 2,500,000 2,631,225 University of Maryland College Park Projects, Refunding, CIFG Insured, 5.00%, 6/01/28 .. 2,000,000 2,095,860 University of Maryland College Park Projects, Refunding, CIFG Insured, 5.00%, 6/01/33 .. 3,000,000 3,132,420 Maryland State EDC Utility Infrastructure Revenue, University College Park Project, AMBAC Insured, 5.00%, 7/01/19 ........................................................... 1,675,000 1,737,963 Maryland State Energy Financing Administration Solid Waste Disposal Revenue, Limited Obligation, Wheelabrator Water Projects, 6.45%, 12/01/16 ........................ 3,000,000 3,051,150
106 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN MARYLAND TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) MARYLAND (CONTINUED) Maryland State Health and Higher Educational Facilities Authority Revenue, Anne Arundel Health System, Series A, 5.125%, 7/01/34 .................................. $ 2,500,000 $ 2,546,650 Anne Arundel Medical Center, FSA Insured, 5.125%, 7/01/33 .............................. 8,365,000 8,532,133 Carroll County General Hospital, 6.00%, 7/01/26 ........................................ 2,000,000 2,109,600 Carroll County General Hospital, 5.80%, 7/01/32 ........................................ 5,000,000 5,247,750 Catholic Health Initiatives, Series A, 6.00%, 12/01/20 ................................. 715,000 765,222 Catholic Health Initiatives, Series A, ETM, 6.00%, 12/01/20 ............................ 2,205,000 2,358,600 Catholic Health Initiatives, Series A, ETM, 6.00%, 12/01/24 ............................ 2,025,000 2,160,148 Charity Obligation Group, Series A, Pre-Refunded, 5.00%, 11/01/19 ...................... 1,515,000 1,564,419 Charity Obligation Group, Series A, Pre-Refunded, 5.00%, 11/01/29 ...................... 2,250,000 2,323,395 Doctors Community Hospital, Refunding, Series A, 5.00%, 7/01/20 ........................ 5,000,000 5,163,700 Doctors Community Hospital, Refunding, Series A, 5.00%, 7/01/29 ........................ 5,000,000 5,055,050 Edenwald, Series A, 5.40%, 1/01/31 ..................................................... 1,000,000 1,036,230 Helix Health Issue, AMBAC Insured, ETM, 5.00%, 7/01/27 ................................. 11,000,000 11,956,890 Johns Hopkins Medical Institutions, Series A, 5.00%, 5/15/37 ........................... 9,395,000 9,743,742 Johns Hopkins University Issue, Pre-Refunded, 6.00%, 7/01/39 ........................... 5,000,000 5,271,500 Johns Hopkins University Issue, Series A, 5.00%, 7/01/32 ............................... 29,000,000 29,769,080 Loyola College, Series A, 5.00%, 10/01/40 .............................................. 8,525,000 8,746,138 Maryland Institute College of Art, 5.00%, 6/01/35 ...................................... 2,000,000 2,042,100 Maryland Institute College of Art, 5.625%, 6/01/36 ..................................... 3,600,000 3,739,716 Maryland Institute College of Art, 5.00%, 6/01/40 ...................................... 6,000,000 6,108,660 Mercy Medical Center, Refunding, 5.625%, 7/01/31 ....................................... 5,500,000 5,661,700 North Arundel Hospital, Pre-Refunded, 6.50%, 7/01/26 ................................... 1,000,000 1,085,860 North Arundel Hospital, Pre-Refunded, 6.50%, 7/01/31 ................................... 1,320,000 1,433,335 Parking, Johns Hopkins Medical Institutions, AMBAC Insured, 5.00%, 7/01/27 ............. 655,000 675,397 Parking, Johns Hopkins Medical Institutions, AMBAC Insured, 5.00%, 7/01/34 ............. 5,000,000 5,217,550 Parking, Johns Hopkins Medical Institutions, Refunding, Series B, AMBAC Insured, 5.00%, 7/01/38 ....................................................................... 6,200,000 6,453,394 Peninsula Regional Medical Center, 5.00%, 7/01/36 ...................................... 7,000,000 7,101,710 Roland Park Place Project, Refunding, 5.625%, 7/01/18 .................................. 2,500,000 2,501,250 Roland Park Place Project, Refunding, 5.625%, 7/01/24 .................................. 2,680,000 2,681,179 Union Hospital Cecil County Issue, 5.00%, 7/01/35 ...................................... 3,015,000 3,075,059 University of Maryland Medical System, Pre-Refunded, 6.75%, 7/01/30 .................... 11,000,000 12,023,440 Upper Chesapeake Hospitals, Series A, FSA Insured, 5.375%, 1/01/28 ..................... 5,000,000 5,092,100 Upper Chesapeake Hospitals, Series A, FSA Insured, 5.125%, 1/01/33 ..................... 7,100,000 7,200,820 Western Maryland Health, Refunding, Series A, MBIA Insured, 4.75%, 7/01/36 ............. 31,680,000 32,169,139 Maryland State Transportation Authority Lease Revenue, Metrorail Parking Project, AMBAC Insured, 5.00%, 7/01/28 ........................................................... 3,975,000 4,160,275 Maryland State Transportation Authority Parking Revenue, AMBAC Insured, 5.00%, 3/01/27 .... 8,000,000 8,313,120 Maryland State Transportation Authority Transportation Facility Projects Revenue, FSA Insured, 5.00%, 7/01/27 ................................................................................ 5,890,000 6,168,185 7/01/31 ................................................................................ 7,455,000 7,783,989 7/01/32 ................................................................................ 7,165,000 7,476,749 7/01/34 ................................................................................ 7,500,000 7,826,325
Quarterly Statements of Investments | 107 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN MARYLAND TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) MARYLAND (CONTINUED) Montgomery County GO, 4.75%, 4/01/22 ......................................................................... $ 3,000,000 $ 3,107,640 Consolidated, Public Improvement, Series A, 5.00%, 6/01/24 ............................. 5,000,000 5,296,900 Pre-Refunded, 4.75%, 2/01/17 ........................................................... 5,000,000 5,200,550 Montgomery County Housing Opportunities Commission MFHR, Series B, FHA Insured, 6.00%, 7/01/37 ................................................................................. 2,500,000 2,532,075 Morgan State University Maryland and Auxiliary Facilities Fees Revenue, Series A, FGIC Insured, 5.00%, 7/01/32 ............................................................ 6,450,000 6,695,809 Prince George's County GO, Consolidated Public Improvement, 4.40%, 9/15/22 ......................................................................... 10,000,000 10,030,300 MBIA Insured, 5.00%, 4/15/18 ........................................................... 2,100,000 2,140,845 Prince George's County IDA Lease Revenue, Upper Marlboro Justice, Series B, MBIA Insured, 4.75%, 6/30/30 ............................................................ 4,000,000 4,044,000 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 2,108,140 Westminster Education Facilities Revenue, McDaniel College Inc., Pre-Refunded, 5.50%, 4/01/27 ................................................................................ 425,000 456,952 4/01/32 ................................................................................ 1,500,000 1,612,770 --------------- 417,795,801 --------------- U.S. TERRITORIES 13.9% PUERTO RICO 12.4% Puerto Rico Commonwealth GO, Public Improvement, FSA Insured, Pre-Refunded, 5.25%, 7/01/27 .............................................. 1,520,000 1,602,977 FSA Insured, Pre-Refunded, 5.125%, 7/01/30 ............................................. 4,360,000 4,577,607 Refunding, FSA Insured, 5.25%, 7/01/27 ................................................. 1,015,000 1,059,498 Refunding, FSA Insured, 5.125%, 7/01/30 ................................................ 2,870,000 2,980,294 Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Refunding, Series N, FGIC Insured, 5.25%, 7/01/39 ...................................... 5,000,000 5,707,700 Series D, Pre-Refunded, 5.25%, 7/01/38 ................................................. 5,000,000 5,326,700 Series G, 5.00%, 7/01/33 ............................................................... 2,170,000 2,227,028 Series G, Pre-Refunded, 5.00%, 7/01/33 ................................................. 4,830,000 5,133,469 Puerto Rico Convention Center District Authority Hotel Occupancy Tax Revenue, Series A, AMBAC Insured, 5.00%, 7/01/31 ........................................................... 5,000,000 5,248,950 Puerto Rico Electric Power Authority Power Revenue, Refunding, Series SS, FSA Insured, 5.00%, 7/01/30 ...................................... 5,000,000 5,253,850 Series HH, FSA Insured, Pre-Refunded, 5.25%, 7/01/29 ................................... 10,780,000 11,340,991 Series II, Pre-Refunded, 5.25%, 7/01/31 ................................................ 3,000,000 3,220,800 Series RR, XLCA Insured, Pre-Refunded, 5.00%, 7/01/30 .................................. 2,000,000 2,153,920 Puerto Rico PBA Guaranteed Revenue, Government Facilities, Refunding, Series D, 5.25%, 7/01/36 .................................................... 520,000 539,401 Series D, Pre-Refunded, 5.25%, 7/01/36 ................................................. 1,480,000 1,573,196 University of Puerto Rico Revenues, University System, Refunding, Series P, 5.00%, 6/01/30 ................................................................................. 4,000,000 4,140,520 --------------- 62,086,901 ---------------
108 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN MARYLAND TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) U.S. TERRITORIES (CONTINUED) VIRGIN ISLANDS 1.5% Virgin Islands PFAR, Gross Receipts Taxes Loan Note, FSA Insured, 5.00%, 10/01/22 ........................... $ 2,000,000 $ 2,108,860 senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/18 ..................... 1,700,000 1,744,557 senior lien, Refunding, Series A, 5.50%, 10/01/14 ...................................... 3,300,000 3,391,245 --------------- 7,244,662 --------------- TOTAL U.S. TERRITORIES .................................................................... 69,331,563 --------------- TOTAL LONG TERM INVESTMENTS (COST $472,858,165) ........................................... 487,127,364 --------------- SHORT TERM INVESTMENTS 2.1% MUNICIPAL BONDS 2.1% MARYLAND 2.1% a Maryland State EDC, EDR, Freedom of American Societies, Series A, Daily VRDN and Put, 3.89%, 7/01/30 .......................................................................... 1,700,000 1,700,000 a Maryland State EDC Revenue, Multi-Modal, U.S. Pharmacopeial, AMBAC Insured, Daily VRDN and Put, 3.90%, 7/01/36 .............................................................................. 2,400,000 2,400,000 U.S. Pharmacopeial Project, Refunding, Series A, AMBAC Insured, Daily VRDN and Put, 3.90%, 7/01/34 ....................................................................... 4,550,000 4,550,000 U.S. Pharmacopeial Project, Refunding, Series B, AMBAC Insured, Daily VRDN and Put, 3.87%, 7/01/34 ....................................................................... 700,000 700,000 a Montgomery County GO, BAN, Public Improvement, Refunding, Series B, Daily VRDN and Put, 3.89%, 6/01/26 .......................................................................... 1,100,000 1,100,000 --------------- TOTAL SHORT TERM INVESTMENTS (COST $10,450,000) ........................................... 10,450,000 --------------- TOTAL INVESTMENTS (COST $483,308,165) 99.6% ............................................... 497,577,364 OTHER ASSETS, LESS LIABILITIES 0.4% ....................................................... 2,244,425 --------------- NET ASSETS 100.0% ......................................................................... $ 499,821,789 ===============
See Selected Portfolio Abbreviations on page 176. a Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. Quarterly Statements of Investments | See Notes to Statements of Investments. | 109 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN MASSACHUSETTS INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS 99.8% MUNICIPAL BONDS 99.8% MASSACHUSETTS 97.7% Auburn GO, AMBAC Insured, 5.125%, 6/01/24 .................................................. $ 1,465,000 $ 1,550,878 Boston Convention Center Act of 1997 Revenue, Special Obligation, Series A, AMBAC Insured, 5.00%, 5/01/27 ........................................................................... 3,970,000 4,125,386 Boston GO, Series A, MBIA Insured, Pre-Refunded, 5.00%, 2/01/21 ................................................................................. 3,000,000 3,145,620 2/01/22 ................................................................................. 2,940,000 3,082,708 Chelsea GO, State Qualified, Refunding, AMBAC Insured, 5.125%, 6/15/16 ..................... 1,750,000 1,790,513 Dudley Charlton Regional School District GO, Series B, FGIC Insured, 5.25%, 5/01/19 ........ 3,140,000 3,474,222 Foxborough Stadium Infrastructure Improvement Revenue, Pre-Refunded, 5.75%, 6/01/25 ........ 4,000,000 4,254,160 Greater Lawrence Sanitary District GO, MBIA Insured, Pre-Refunded, 5.625%, 6/15/20 ......... 1,000,000 1,060,640 Holyoke Gas and Electric Department Revenue, Series A, MBIA Insured, 5.00%, 12/01/26 ....... 9,805,000 10,220,046 Kingston GO, FGIC Insured, Pre-Refunded, 5.50%, 11/15/19 ................................... 2,055,000 2,158,449 Lawrence GO, AMBAC Insured, Pre-Refunded, 5.00%, 2/01/21 ................................... 1,000,000 1,039,850 Lowell GO, FGIC Insured, Pre-Refunded, 5.85%, 2/15/20 .............................................. 1,595,000 1,692,295 State Qualified, AMBAC Insured, 5.00%, 2/01/21 .......................................... 1,330,000 1,389,119 State Qualified, AMBAC Insured, 5.00%, 2/01/22 .......................................... 1,405,000 1,466,019 Ludlow GO, School Project, Limited Tax, MBIA Insured, 7.30%, 11/01/07 ......................................................................... 210,000 212,990 7.30%, 11/01/08 ......................................................................... 210,000 220,193 7.40%, 11/01/09 ......................................................................... 210,000 227,665 Mansfield GO, Municipal Purpose Loan, FGIC Insured, Pre-Refunded, 5.125%, 8/15/17 .......... 1,685,000 1,706,450 Martha's Vineyard Land Bank Revenue, AMBAC Insured, 4.875%, 5/01/22 ......................................................................... 2,000,000 2,074,120 5.00%, 5/01/32 .......................................................................... 2,000,000 2,070,140 5.00%, 5/01/34 .......................................................................... 7,000,000 7,268,590 Massachusetts Bay Transportation Authority Revenue, General Transportation System, Series C, FGIC Insured, 5.25%, 3/01/15 ............................................................. 2,000,000 2,174,580 Massachusetts Bay Transportation Authority Sales Tax Revenue, Refunding, Senior Series A, FGIC Insured, 5.00%, 7/01/27 ............................................................. 5,000,000 5,257,800 Massachusetts State College Building Authority Project Revenue, Capital Assurance, Refunding, Series A, XLCA Insured, 5.00%, 5/01/43 .................... 2,000,000 2,052,320 Refunding, Series B, XLCA Insured, 5.50%, 5/01/39 ....................................... 5,000,000 5,909,050 Series 1, MBIA Insured, ETM, 5.375%, 5/01/23 ............................................ 5,000,000 5,197,300 Massachusetts State Development Finance Agency Revenue, Boston University, Series T-1, AMBAC Insured, 5.00%, 10/01/35 ........................... 3,600,000 3,764,268 Boston University, Series T-1, AMBAC Insured, 5.00%, 10/01/39 ........................... 25,305,000 26,369,834 Brandeis University, Series K, FGIC Insured, 4.75%, 10/01/28 ............................ 2,000,000 2,023,840 Massachusetts/Saltonstall Redevelopment Building Corp., Series A, MBIA Insured, 5.125%, 2/01/34 ............................................................................... 22,400,000 23,257,024 MBIA Insured, 5.20%, 7/01/32 ............................................................ 2,250,000 2,370,668 Series A, AMBAC Insured, Pre-Refunded, 5.375%, 1/01/42 .................................. 4,000,000 4,287,000 Series A, GNMA Secured, Pre-Refunded, 6.90%, 10/20/41 ................................... 2,090,000 2,435,540 Western New England, Series A, Assured Guaranty, 5.00%, 9/01/33 ......................... 9,000,000 9,325,170 Western New England College, AMBAC Insured, Pre-Refunded, 5.25%, 7/01/20 ................ 1,500,000 1,589,190
110 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN MASSACHUSETTS INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) MASSACHUSETTS (CONTINUED) Massachusetts State GO, Consolidated Loan, Series A, FSA Insured, Pre-Refunded, 5.00%, 3/01/24 .................. $ 5,000,000 $ 5,353,700 Consolidated Loan, Series C, FGIC Insured, Pre-Refunded, 5.25%, 11/01/30 ................ 9,645,000 10,288,225 Consolidated Loan, Series D, MBIA Insured, ETM, 5.00%, 8/01/27 .......................... 3,430,000 3,609,423 Consolidated Loan, Series D, MBIA Insured, Pre-Refunded, 5.00%, 8/01/27 ................. 965,000 1,015,479 MBIA Insured, Pre-Refunded, 5.00%, 8/01/22 .............................................. 4,100,000 4,314,471 Massachusetts State Health and Educational Facilities Authority Revenue, Boston College, Series N, MBIA Insured, 5.125%, 6/01/33 ................................. 5,000,000 5,223,800 Brandeis University, Refunding, Series I, MBIA Insured, 4.75%, 10/01/20 ................. 3,000,000 3,050,010 Cable Housing and Health Services, Series A, MBIA Insured, 5.25%, 7/01/23 ............... 1,000,000 1,000,660 Catholic Health East, Series A, AMBAC Insured, Pre-Refunded, 5.00%, 11/15/28 ............ 6,575,000 6,782,967 Harvard University, Series FF, 5.125%, 7/15/37 .......................................... 3,000,000 3,130,530 New England Medical Center Hospital, Series H, FGIC Insured, 5.00%, 5/15/22 ............. 10,000,000 10,299,600 Northeastern University, Series I, MBIA Insured, 5.00%, 10/01/29 ........................ 1,250,000 1,284,863 Partners Healthcare System, Series A, MBIA Insured, 5.375%, 7/01/24 ..................... 5,000,000 5,054,400 Springfield College, AMBAC Insured, 5.00%, 10/15/27 ..................................... 2,500,000 2,533,475 Tufts University, Series I, 5.25%, 2/15/30 .............................................. 4,000,000 4,155,960 University of Massachusetts, Series C, FGIC Insured, 5.125%, 10/01/34 ................... 3,000,000 3,132,390 University of Massachusetts, Worcester Campus, Series B, FGIC Insured, Pre-Refunded, 5.25%, 10/01/31 ....................................................................... 3,500,000 3,697,470 University of Massachusetts Project, Series A, FGIC Insured, Pre-Refunded, 5.875%, 10/01/29 ...................................................................... 4,000,000 4,291,800 University of Massachusetts Project, Series C, MBIA Insured, Pre-Refunded, 5.25%, 10/01/31 ....................................................................... 1,500,000 1,600,110 Wellesley College, Series F, 5.125%, 7/01/39 ............................................ 7,500,000 7,692,825 Wheelock College, Series B, MBIA Insured, 5.625%, 10/01/30 .............................. 1,770,000 1,857,420 Worcester City Campus Corp., Refunding, Series E, FGIC Insured, 5.00%, 10/01/31 ......... 18,735,000 19,629,784 Worcester City Campus Corp., Series F, FGIC Insured, 4.75%, 10/01/36 .................... 3,030,000 3,075,450 Massachusetts State HFA, MFHR, Section 8 Assisted, Series A, GNMA Secured, ETM, 7.00%, 4/01/21 .................................................................................. 430,000 544,698 Massachusetts State HFA Housing Revenue, Rental, Series A, AMBAC Insured, 5.95%, 7/01/30 .................................................................................. 2,000,000 2,108,800 Massachusetts State Industrial Finance Agency Electrical Utility Revenue, Nantucket Electric Co., Series A, AMBAC Insured, 5.875%, 7/01/17 .................................. 4,000,000 4,071,560 Massachusetts State Industrial Finance Agency Revenue, Simons Rock College, AMBAC Insured, 5.50%, 6/01/27 ...................................... 1,560,000 1,591,793 St. Mark's School Issue, MBIA Insured, 5.375%, 1/01/21 .................................. 2,665,000 2,687,999 Suffolk University, AMBAC Insured, Pre-Refunded, 5.25%, 7/01/27 ......................... 4,000,000 4,084,240 Trustees Deerfield Academy, 5.25%, 10/01/27 ............................................. 2,800,000 2,866,724 Western New England College, AMBAC Insured, Pre-Refunded, 5.00%, 7/01/28 ................ 4,000,000 4,132,680 WGBH Educational Foundation, Refunding, AMBAC Insured, 5.00%, 3/01/28 ................... 2,500,000 2,554,975 Worcester Polytechnical Institute, Refunding, MBIA Insured, 5.125%, 9/01/17 ............. 3,720,000 3,805,039 Worcester Polytechnical Institute, Refunding, Series II, MBIA Insured, 5.50%, 9/01/21 ... 2,000,000 2,047,380 Worcester Polytechnical Institute, Refunding, Series II, MBIA Insured, 5.125%, 9/01/27 .. 4,000,000 4,089,840
Quarterly Statements of Investments | 111 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN MASSACHUSETTS INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) MASSACHUSETTS (CONTINUED) Massachusetts State Port Authority Revenue, Series A, AMBAC Insured, 5.00%, 7/01/35 ................................................. $ 14,915,000 $ 15,558,284 Series A, FSA Insured, 5.125%, 7/01/17 .................................................. 2,000,000 2,064,700 a Series A, FSA Insured, 4.50%, 7/01/32 ................................................... 7,725,000 7,599,237 a Series A, FSA Insured, 4.50%, 7/01/37 ................................................... 7,935,000 7,755,590 Special Facilities, Bosfuel Project, MBIA Insured, 5.625%, 7/01/19 ...................... 2,215,000 2,261,426 Special Facilities, Bosfuel Project, MBIA Insured, 5.625%, 7/01/22 ...................... 2,000,000 2,041,880 Special Facilities, Bosfuel Project, MBIA Insured, 5.75%, 7/01/29 ....................... 7,450,000 7,606,673 Special Facilities, Bosfuel Project, MBIA Insured, 5.75%, 7/01/39 ....................... 845,000 862,770 US Airways Project, MBIA Insured, 6.00%, 9/01/21 ........................................ 4,700,000 4,909,150 US Airways Project, Series A, MBIA Insured, 5.875%, 9/01/23 ............................. 4,500,000 4,567,725 Massachusetts State School Building Authority Dedicated Sales Tax Revenue, Series A, AMBAC Insured, 4.50%, 8/15/35 ........................................................... 10,000,000 9,780,400 FSA Insured, 5.00%, 8/15/30 ............................................................. 13,250,000 13,874,737 Massachusetts State Special Obligation Dedicated Tax Revenue, FGIC Insured, Pre-Refunded, 5.25%, 1/01/29 .............................................. 5,000,000 5,378,850 Refunding, FGIC Insured, 5.50%, 1/01/34 ................................................. 8,400,000 9,891,840 Massachusetts State Turnpike Authority Metropolitan Highway System Revenue, Refunding, Series A, MBIA Insured, 5.00%, 1/01/37 ....................................... 9,000,000 9,156,060 sub. lien, Refunding, Series B, MBIA Insured, 5.25%, 1/01/29 ............................ 4,600,000 4,696,784 sub. lien, Refunding, Series B, MBIA Insured, 5.125%, 1/01/37 ........................... 10,000,000 10,209,500 Massachusetts State Water Pollution Abatement Trust Revenue, Pool Program Bonds, Series 6, 5.50%, 8/01/30 ............................................ 2,620,000 2,758,388 Pool Program Bonds, Series 6, Pre-Refunded, 5.50%, 8/01/30 .............................. 1,075,000 1,138,350 Pool Program Bonds, Series 7, 5.125%, 2/01/31 ........................................... 4,300,000 4,451,661 Pool Program Bonds, Series 7, Pre-Refunded, 5.125%, 2/01/31 ............................. 1,700,000 1,783,079 Water Revenue Authority Program, Refunding, Sub Series A, 5.75%, 8/01/29 ................ 3,995,000 4,184,603 Water Revenue Authority Program, Sub Series A, Pre-Refunded, 5.75%, 8/01/29 ............. 1,005,000 1,056,114 Massachusetts State Water Resources Authority Revenue, General, Refunding, Series A, MBIA Insured, 5.00%, 8/01/34 .............................. 10,700,000 11,229,543 Refunding, Series J, FSA Insured, 5.00%, 8/01/32 ........................................ 9,000,000 9,254,520 Series A, FGIC Insured, Pre-Refunded, 5.75%, 8/01/39 .................................... 9,275,000 9,884,182 Series A, FSA Insured, 4.50%, 8/01/46 ................................................... 1,000,000 959,110 Milford GO, FSA Insured, 5.125%, 12/15/26 .................................................. 1,030,000 1,103,130 Monson GO, AMBAC Insured, 5.25%, 11/01/23 .................................................. 1,675,000 1,799,319 New Bedford GO, Municipal Purpose Loan, FGIC Insured, 5.00%, 5/01/21 ....................... 3,685,000 3,845,740 Plymouth County COP, Correctional Facility Project, Refunding, AMBAC Insured, 5.125%, 10/01/18 ................................................................................. 2,000,000 2,078,420 Route 3 North Transportation Improvement Assn. Lease Revenue, MBIA Insured, Pre-Refunded, 5.375%, 6/15/33 .......................................................................... 15,475,000 16,165,649 Salisbury GO, MBIA Insured, Pre-Refunded, 5.30%, 3/15/27 ................................... 2,795,000 2,993,445 Shrewsbury GO, Municipal Purpose Loan, 5.00%, 8/15/20 ...................................... 2,075,000 2,173,480 Springfield GO, Municipal Purpose Loan, FGIC Insured, Pre-Refunded, 5.00%, 8/01/21 ...................... 5,000,000 5,267,200 Municipal Purpose Loan, FSA Insured, Pre-Refunded, 5.00%, 11/15/18 ...................... 1,500,000 1,542,225 State Qualified Municipal Purpose Loan, FSA Insured, 4.50%, 8/01/26 ..................... 2,000,000 2,003,000 Springfield Water and Sewer Commission Revenue, Series A, AMBAC Insured, Pre-Refunded, 5.00%, 11/01/21 .......................................................................... 2,775,000 2,930,011
112 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN MASSACHUSETTS INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) MASSACHUSETTS (CONTINUED) University Building Authority Project Revenue, Refunding, Senior Series 1, AMBAC Insured, 5.25%, 11/01/23 ................................................................................ $ 2,155,000 $ 2,320,957 11/01/28 ................................................................................ 5,035,000 5,422,745 University of Massachusetts Building Authority Project Revenue, Senior Series 2004-1, AMBAC Insured, Pre-Refunded, 5.25%, 11/01/29 ............................................. 3,000,000 3,256,200 Whitman Hanson Regional School District GO, Refunding, FGIC Insured, 5.00%, 6/15/21 ........ 1,960,000 2,050,258 Winthrop GO, AMBAC Insured, 5.00%, 11/01/20 ................................................ 1,230,000 1,291,549 Worcester GO, Refunding, Series E, MBIA Insured, 6.00%, 10/01/15 ........................... 1,335,000 1,344,612 --------------- 519,407,273 --------------- U.S. TERRITORIES 2.1% PUERTO RICO 2.1% Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue,Refunding, Series N, FGIC Insured, 5.25%, 7/01/39 ................................ 10,000,000 11,415,400 --------------- TOTAL LONG TERM INVESTMENTS (COST $509,013,081) ............................................ 530,822,673 --------------- SHORT TERM INVESTMENTS 0.3% MUNICIPAL BONDS 0.3% MASSACHUSETTS 0.3% b Massachusetts State GO, Consolidated Loan, Series A, Daily VRDN and Put, 3.85%, 3/01/26 .................................................................................. 100,000 100,000 b Massachusetts State Health and Educational Facilities Authority Revenue, Capital Assets Program, Series D, MBIA Insured, Daily VRDN and Put, 3.88%, 1/01/35 ...................... 220,000 220,000 b Massachusetts State Water Resources Authority Revenue, Multi-Modal, General, Refunding, Sub Series D, Daily VRDN and Put, 3.90%, 8/01/17 ......................................... 100,000 100,000 b Massachusetts State Water Resources Authority Revenue, Multi Modal, General, Refunding, Sub Series C, Daily VRDN and Put, 3.85%, 8/01/20 ......................................... 1,100,000 1,100,000 --------------- 1,520,000 --------------- U.S. TERRITORIES 0.0% c PUERTO RICO 0.0% c b Puerto Rico Commonwealth Government Development Bank Revenue, Refunding, MBIA Insured, Weekly VRDN and Put, 3.61%, 12/01/15 ..................................................... 100,000 100,000 --------------- TOTAL SHORT TERM INVESTMENTS (COST $1,620,000) ............................................. 1,620,000 --------------- TOTAL INVESTMENTS (COST $510,633,081) 100.1% ............................................... 532,442,673 OTHER ASSETS, LESS LIABILITIES (0.1)% ...................................................... (614,942) --------------- NET ASSETS 100.0% .......................................................................... $ 531,827,731 ===============
See Selected Portfolio Abbreviations on page 176. 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. c Rounds to less than 0.1% of net assets. Quarterly Statements of Investments | See Notes to Statements of Investments. | 113 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN MICHIGAN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS 99.1% MUNICIPAL BONDS 99.1% MICHIGAN 89.0% Adrian City School District GO, FSA Insured, Pre-Refunded, 5.00%, 5/01/26 ................................................................................. $ 1,960,000 $ 2,084,480 5/01/29 ................................................................................. 2,125,000 2,259,959 5/01/34 ................................................................................. 6,690,000 7,114,882 Allendale Public School District GO, 2006, School Building and Site, FGIC Insured, Pre-Refunded, 5.125%, 5/01/27 ............. 3,225,000 3,402,665 School Building and Site, FGIC Insured, Pre-Refunded, 5.125%, 5/01/27 ................... 3,225,000 3,402,665 School Building and Site, FGIC Insured, Pre-Refunded, 5.125%, 5/01/32 ................... 5,490,000 5,792,444 Anchor Bay School District GO, School Building and Site, Series I, FGIC Insured, Pre-Refunded, 6.00%, 5/01/29 .................................... 2,000,000 2,081,940 Series II, FGIC Insured, Pre-Refunded, 5.70%, 5/01/25 ................................... 5,000,000 5,254,600 Series II, FGIC Insured, Pre-Refunded, 5.75%, 5/01/30 ................................... 3,750,000 3,946,050 Avondale School District GO, School Building and Site, FSA Insured, Pre-Refunded, 5.00%, 5/01/29 .................................................................................. 9,000,000 9,512,550 Bay City School District GO, School Building and Site, FSA Insured, 5.00%, 5/01/31 ......... 6,000,000 6,312,360 Birmingham City School District GO, School Building and Site, FSA Insured, 5.00%, 11/01/27 ................................................................................ 5,000,000 5,239,150 11/01/33 ................................................................................ 2,590,000 2,705,514 Brown City Community School District GO, Building and Site, FGIC Insured, 5.00%, 5/01/31 .......................................................................... 3,200,000 3,288,896 Pre-Refunded, 5.00%, 5/01/26 ............................................................ 4,445,000 4,650,181 a Caledonia Community Schools GO, MBIA Insured, 5.00%, 5/01/26 ............................... 3,665,000 3,860,491 Carman-Ainsworth Community School District GO, FGIC Insured, 5.00%, 5/01/27 .......................................................................... 1,400,000 1,442,868 Pre-Refunded, 5.00%, 5/01/27 ............................................................ 1,550,000 1,626,818 Central Michigan University Revenue, FGIC Insured, 5.00%, 10/01/27 ........................................................... 500,000 505,965 General, AMBAC Insured, 5.00%, 10/01/34 ................................................. 8,905,000 9,330,392 Series A, AMBAC Insured, 5.05%, 10/01/32 ................................................ 10,000,000 10,405,100 Central Montcalm Public School GO, MBIA Insured, Pre-Refunded, 6.00%, 5/01/29 .............. 1,400,000 1,457,358 Charles Stewart Mott Community College GO, FGIC Insured, Pre-Refunded, 5.50%, 5/01/21 .................................................................................. 3,550,000 3,711,419 Charlotte Public School District GO, FGIC Insured, Pre-Refunded, 5.375%, 5/01/29 ........... 5,000,000 5,147,900 Chippewa Valley Schools GO, School Building and Site, FSA Insured, 5.00%, 5/01/34 .......... 6,500,000 6,775,405 Coopersville Area Public Schools, School Building and Site, FSA Insured, 5.00%, 5/01/31 .................................................................................. 5,000,000 5,241,400 Detroit City School District GO, School Building and Site Improvements, Series A, FGIC Insured, Pre-Refunded, 5.00%, 5/01/23 ............................................................................... 2,650,000 2,800,918 School Building and Site Improvements, Series B, FGIC Insured, 5.00%, 5/01/25 ........... 2,000,000 2,079,660 Series A, FSA Insured, 6.00%, 5/01/29 ................................................... 10,000,000 12,119,000 Series A, FSA Insured, Pre-Refunded, 5.125%, 5/01/31 .................................... 38,330,000 40,406,719 Detroit Public Improvements GO, Series A-1, MBIA Insured, 5.00%, 4/01/20 ................... 10,610,000 10,950,157 Detroit Sewage Disposal Revenue, Series A, MBIA Insured, Pre-Refunded, 5.50%, 7/01/20 .......................................................................... 215,000 217,417 5.00%, 7/01/27 .......................................................................... 22,000,000 22,239,580
114 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN MICHIGAN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) MICHIGAN (CONTINUED) Detroit Sewage Disposal Revenue, senior lien, Refunding, Series A, FSA Insured, 5.00%, 7/01/32 ........................................ $ 4,545,000 $ 4,701,030 Series A, FSA Insured, Pre-Refunded, 5.00%, 7/01/32 ..................................... 11,755,000 12,441,257 Detroit Water Supply System Revenue, FGIC Insured, ETM, 6.25%, 7/01/12 ....................................................... 1,455,000 1,538,604 second lien, Series B, FGIC Insured, 5.50%, 7/01/33 ..................................... 20,000,000 21,403,400 second lien, Series B, MBIA Insured, 5.00%, 7/01/34 ..................................... 8,875,000 9,198,849 senior lien, Series A, FGIC Insured, 5.00%, 7/01/30 ..................................... 11,400,000 11,707,686 senior lien, Series A, FGIC Insured, Pre-Refunded, 5.875%, 7/01/29 ...................... 1,500,000 1,588,020 senior lien, Series A, FGIC Insured, Pre-Refunded, 5.25%, 7/01/33 ....................... 4,880,000 5,131,320 senior lien, Series A, FGIC Insured, Pre-Refunded, 5.25%, 7/01/33 ....................... 4,745,000 4,993,021 senior lien, Series A, MBIA Insured, 5.00%, 7/01/27 ..................................... 4,930,000 4,976,983 senior lien, Series A, MBIA Insured, Pre-Refunded, 5.00%, 7/01/27 ....................... 820,000 828,930 Series B, MBIA Insured, Pre-Refunded, 5.00%, 7/01/34 .................................... 5,270,000 5,577,663 Detroit/Wayne County Stadium Authority Revenue, FGIC Insured, 5.25%, 2/01/27 ............... 5,500,000 5,603,455 East Grand Rapids Public School District GO, FSA Insured, Pre-Refunded, 6.00%, 5/01/29 .................................................................................. 4,775,000 4,970,632 Eastern Michigan University Revenues, Refunding, Series A, FGIC Insured, Pre-Refunded, 5.00%, 6/01/28 ................................................................................. 6,730,000 7,118,254 6/01/33 ................................................................................. 14,700,000 15,548,043 Eaton Rapids Public Schools GO, School Building and Site, FSA Insured, 5.00%, 5/01/26 .......................................................................... 2,700,000 2,818,341 5.00%, 5/01/29 .......................................................................... 820,000 852,956 Pre-Refunded, 5.00%, 5/01/29 ............................................................ 1,930,000 2,052,574 Ecorse Public School District GO, FGIC Insured, Pre-Refunded, 5.50%, 5/01/17 ............... 5,000,000 5,128,050 Farmington Hills EDC Revenue, Botsford Continuing Care, Series A, MBIA Insured, 5.75%, 2/15/25 .................................................................................. 100,000 100,158 Fennville Public Schools GO, School Building and Site, FGIC Insured, 5.00%, 5/01/30 .......................................................................... 2,085,000 2,173,842 Pre-Refunded, 5.00%, 5/01/30 ............................................................ 1,115,000 1,185,814 Pre-Refunded, 5.00%, 5/01/34 ............................................................ 3,250,000 3,456,408 Ferris State University Revenue, FGIC Insured, 5.25%, 10/01/26 ................................................................................ 1,500,000 1,560,360 10/01/31 ................................................................................ 3,255,000 3,372,017 Fowlerville Community School District GO, FGIC Insured, 5.00%, 5/01/30 ................................................................................. 1,990,000 2,073,600 5/01/34 ................................................................................. 8,145,000 8,482,203 Genesee County GO, Water Supply System, AMBAC Insured, 5.00%, 11/01/30 ..................... 4,000,000 4,183,560 Grand Blanc Community Schools GO, School Building and Site, FSA Insured, 5.00%, 5/01/28 .................................................................................. 4,250,000 4,436,277 Grand Rapids Building Authority GO, AMBAC Insured, 5.50%, 8/01/20 .......................... 2,000,000 2,089,200 Grand Rapids Building Authority Revenue, AMBAC Insured, Series A, 5.00%, 10/01/28 ......................................................................... 3,590,000 3,715,111 Pre-Refunded, 5.00%, 10/01/28 ........................................................... 2,410,000 2,538,549 Grand Rapids Downtown Development Authority Tax Increment Revenue, MBIA Insured, 6.875%, 6/01/24 .......................................................................... 7,500,000 7,518,975
Quarterly Statements of Investments | 115 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN MICHIGAN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) MICHIGAN (CONTINUED) Grand Rapids Sanitation Sewer System Revenue, MBIA Insured, 5.00%, 1/01/30 ................................................................................. $ 7,500,000 $ 7,865,100 1/01/34 ................................................................................. 7,795,000 8,158,169 Grand Rapids Water Supply Revenue, FGIC Insured, 5.00%, 1/01/35 ............................ 3,500,000 3,658,690 Hamilton Community School District GO, FGIC Insured, 5.00%, 5/01/24 ........................ 2,000,000 2,016,300 Hancock Hospital Finance Authority Revenue, Portage Health, MBIA Insured, Pre-Refunded, 5.45%, 8/01/47 ........................................................................... 4,400,000 4,475,108 Hartland Consolidated School District GO, FGIC Insured, Pre-Refunded, 6.00%, 5/01/29 ....... 30,000,000 31,772,700 Hazel Park Building Authority Revenue, Ice Arena, AMBAC Insured, 4.70%, 4/01/24 ............ 700,000 700,854 Hazel Park School District GO, FSA Insured, 5.00%, 5/01/27 ................................................................................. 9,000,000 9,303,750 5/01/32 ................................................................................. 12,475,000 12,884,928 Healthsource Saginaw Inc. Saginaw County GO, MBIA Insured, 5.00%, 5/01/29 .................. 4,145,000 4,317,805 Howell Public Schools GO, MBIA Insured, Pre-Refunded, 5.875%, 5/01/22 ...................... 2,000,000 2,077,380 Huron School District GO, FSA Insured, Pre-Refunded, 5.25%, 5/01/21 .......................................................................... 1,500,000 1,575,420 5.375%, 5/01/26 ......................................................................... 2,500,000 2,636,925 Jackson Brownfield RDAR, FGIC Insured, 5.125%, 6/01/22 ......................................................................... 2,290,000 2,389,684 5.125%, 6/01/24 ......................................................................... 1,215,000 1,268,436 5.25%, 6/01/26 .......................................................................... 2,820,000 2,964,976 5.375%, 6/01/30 ......................................................................... 5,830,000 6,191,985 Jackson Public Schools GO, School Building and Site, Refunding, FSA Insured, 5.00%, 5/01/34 .................................................................................. 6,620,000 6,874,009 Kalamazoo City School District GO, Building and Site, FSA Insured, 5.00%, 5/01/21 .......... 4,000,000 4,165,200 Kalamazoo Hospital Finance Authority Hospital Facility Revenue, Borgess Medical Center, Series A, AMBAC Insured, ETM, 5.625%, 6/01/14 ................... 3,805,000 4,015,112 Bronson Methodist Hospital, MBIA Insured, Pre-Refunded, 5.25%, 5/15/18 .................. 115,000 117,759 Bronson Methodist Hospital, MBIA Insured, Pre-Refunded, 5.50%, 5/15/28 .................. 10,000,000 10,262,900 Bronson Methodist Hospital, Refunding, MBIA Insured, 5.25%, 5/15/18 ..................... 135,000 137,909 Kent County Building Authority GO, Pre-Refunded, 5.00%, 6/01/26 ............................ 21,885,000 22,160,751 Lake St. Clair Shores Drain District GO, Series A, MBIA Insured, 5.125%, 10/01/29 .......... 1,000,000 1,029,600 Lake Superior State University Revenue, Refunding, AMBAC Insured, 5.25%, 11/15/31 .......... 3,320,000 3,457,182 Lenawee County Hospital Finance Authority Hospital Revenue, Lenawee Health Alliance, Refunding, Series A, AMBAC Insured, 5.20%, 7/01/19 ....................................... 2,115,000 2,188,687 Lincoln Consolidated School District GO, FSA Insured, Pre-Refunded, 5.00%, 5/01/28 ......... 1,000,000 1,011,530 Lincoln Park School District GO, FGIC Insured, Pre-Refunded, 5.00%, 5/01/26 .............................................. 255,000 257,940 Refunding, FGIC Insured, 5.00%, 5/01/26 ................................................. 645,000 650,373 Livonia Municipal Building Authority GO, FGIC Insured, Pre-Refunded, 5.25%, 5/01/30 ........ 3,950,000 4,102,707 Lowell Area Schools GO, FGIC Insured, Pre-Refunded, 5.625%, 5/01/25 ................................................................................. 3,125,000 3,277,750 5/01/30 ................................................................................. 3,250,000 3,408,860 Michigan Higher Education Student Loan Authority Revenue, Series XVII-E, AMBAC Insured, 5.40%, 6/01/19 .......................................................................... 5,000,000 5,129,150 5.50%, 6/01/25 .......................................................................... 5,000,000 5,158,100
116 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN MICHIGAN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) MICHIGAN (CONTINUED) Michigan Municipal Bond Authority Revenue, Clean Water State Revolving Fund, 5.00%, 10/01/24 ....................................... $ 11,355,000 $ 11,811,017 Local Government Loan Program, Series C, MBIA Insured, 6.00%, 11/01/10 .................. 3,790,000 3,815,658 Michigan State Building Authority Revenue, Facilities Program, Refunding, Series I, AMBAC Insured, 5.00%, 10/15/33 ................. 4,450,000 4,634,853 Facilities Program, Refunding, Series I, FSA Insured, 4.75%, 10/15/18 ................... 3,000,000 3,039,930 Facilities Program, Refunding, Series I, FSA Insured, 5.00%, 10/15/24 ................... 5,000,000 5,143,600 Facilities Program, Series III, FSA Insured, Pre-Refunded, 5.00%, 10/15/26 .............. 14,000,000 14,751,800 Refunding, AMBAC Insured, 5.00%, 10/15/33 ............................................... 16,000,000 16,721,600 Refunding, Series IA, FGIC Insured, 5.00%, 10/15/32 ..................................... 17,160,000 17,942,153 Refunding, Series IA, FGIC Insured, 5.00%, 10/15/36 ..................................... 5,000,000 5,220,100 Michigan State Comprehensive Transportation Revenue, Refunding, FSA Insured, 5.00%, 5/15/31 .................................................................................. 8,000,000 8,412,000 Michigan State COP, AMBAC Insured, Pre-Refunded, 5.50%, 6/01/27 ............................ 12,000,000 12,560,880 Michigan State HDA Rental Housing Revenue, Refunding, Series A, AMBAC Insured, 6.00%, 4/01/16 .................................................................................. 200,000 204,858 Michigan State Hospital Finance Authority Revenue, Ascension Health Credit, Series A, MBIA Insured, Pre-Refunded, 6.125%, 11/15/23 ......... 15,175,000 16,140,130 Detroit Medical Center Obligation Group, Refunding, Series A, AMBAC Insured, 5.50%, 8/15/24 ............................................................................... 15,000,000 15,340,050 Detroit Medical Center Obligation Group, Refunding, Series A, AMBAC Insured, 5.25%, 8/15/27 ............................................................................... 10,000,000 10,211,000 Mercy Health Services, Series Q, AMBAC Insured, ETM, 5.375%, 8/15/26 .................... 6,000,000 6,049,080 Mercy Health Services, Series R, AMBAC Insured, ETM, 5.375%, 8/15/26 .................... 1,750,000 1,764,315 Mercy Health Services, Series T, MBIA Insured, Pre-Refunded, 5.75%, 8/15/15 ............. 10,525,000 10,670,876 Mercy Health Services, Series U, ETM, 5.75%, 8/15/26 .................................... 300,000 303,573 Mercy Health Services, Series W, FSA Insured, ETM, 5.25%, 8/15/27 ....................... 8,605,000 8,714,714 Mercy Health Services, Series X, MBIA Insured, Pre-Refunded, 6.00%, 8/15/34 ............. 11,000,000 11,612,590 Mercy Mount Clemens Corp., Refunding, Series A, MBIA Insured, 5.75%, 5/15/29 ............ 4,890,000 5,090,930 Mid-Michigan Health, AMBAC Insured, 5.00%, 4/15/24 ...................................... 7,065,000 7,273,276 Mid-Michigan Health, AMBAC Insured, 5.00%, 4/15/32 ...................................... 1,000,000 1,028,150 Mid-Michigan Obligation Group, Refunding, Series A, FSA Insured, 5.375%, 6/01/27 ........ 7,500,000 7,694,625 Oakwood Obligation Group, Refunding, Series A, FSA Insured, 5.125%, 8/15/25 ............. 7,500,000 7,650,900 Refunding, MBIA Insured, 5.00%, 11/15/36 ................................................ 12,465,000 12,860,265 St. John's Health System, Series A, AMBAC Insured, ETM, 5.125%, 5/15/17 ................. 14,500,000 14,835,240 St. John's Hospital, Series A, AMBAC Insured, ETM, 6.00%, 5/15/13 ....................... 3,445,000 3,554,448 St. John's Hospital, Series A, AMBAC Insured, ETM, 6.25%, 5/15/14 ....................... 9,545,000 10,130,586 Michigan State Strategic Fund Limited Obligation Revenue, Collateral, The Detroit Edison Co., Fund, Pollution, Refunding, Series AA, FGIC Insured, 6.95%, 5/01/11 ................................................. 5,000,000 5,539,650 Series BB, AMBAC Insured, 7.00%, 5/01/21 ................................................ 3,000,000 3,822,810 Michigan State Strategic Fund Resources Recovery Limited Obligation Revenue, Detroit Education Exempt Facilities, Refunding, Series D, XLCA Insured, 5.25%, 12/15/32 .......... 12,350,000 12,872,281 Michigan State Trunk Line Revenue, Refunding, Series A, MBIA Insured, 4.75%, 11/01/20 ...................................... 3,300,000 3,355,968 Refunding, Series A, MBIA Insured, 5.00%, 11/01/26 ...................................... 3,050,000 3,120,028 Series A, FSA Insured, Pre-Refunded, 5.00%, 11/01/25 .................................... 16,265,000 17,002,292 Series A, FSA Insured, Pre-Refunded, 5.25%, 11/01/30 .................................... 34,680,000 36,600,232
Quarterly Statements of Investments | 117 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN MICHIGAN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) MICHIGAN (CONTINUED) Michigan Technological University Revenue, General, Series A, MBIA Insured, 5.00%, 10/01/34 ................................................................................. $ 3,675,000 $ 3,813,805 Milan Area Schools GO, Series A, FGIC Insured, Pre-Refunded, 5.75%, 5/01/24 ................ 3,500,000 3,681,020 North Kent Sewer Authority Revenue, Sanitary Sewer, MBIA Insured, 5.00%, 11/01/31 .......... 5,960,000 6,260,861 Northview Public Schools District GO, MBIA Insured, 5.80%, 5/01/21 ............................................................ 235,000 238,062 Refunding, FGIC Insured, 5.00%, 5/01/21 ................................................. 3,450,000 3,484,224 Oakland Schools Intermediate School District GO, School Building and Site, FSA Insured, 5.00%, 5/01/36 ........................................................................... 3,000,000 3,150,540 Oakridge Public Schools GO, FSA Insured, Pre-Refunded, 5.00%, 5/01/23 .......................................................................... 500,000 505,765 5.125%, 5/01/28 ......................................................................... 500,000 506,315 Otsego Public Schools District GO, School Building and Site, FSA Insured, Pre-Refunded, 5.00%, 5/01/34 ........................................................................... 9,835,000 10,459,621 Ovid Elsie Area Schools GO, School Building and Site, MBIA Insured, Pre-Refunded, 5.00%, 5/01/32 .................................................................................. 7,775,000 8,195,705 Oxford Area Community School District GO, FSA Insured, Pre-Refunded, 5.00%, 5/01/26 ................................................................................. 5,425,000 5,675,418 5/01/31 ................................................................................. 4,865,000 5,089,568 a Parchment School District GO, School Building and Site, FSA Insured, 4.75%, 5/01/36 ........ 3,175,000 3,258,185 Pennfield School District GO, School Building and Site, FGIC Insured, Pre-Refunded, 5.00%, 5/01/29 ............................................................ 645,000 685,964 Pre-Refunded, 5.00%, 5/01/34 ............................................................ 2,500,000 2,658,775 Prefunding, 5.00%, 5/01/29 .............................................................. 505,000 537,073 Pinckney Community Schools GO, Refunding, FSA Insured, 5.00%, 5/01/26 ...................... 2,955,000 3,084,518 Pontiac General Building Authority GO, FGIC Insured, Pre-Refunded, 5.375%, 6/01/23 ................................................................................. 1,620,000 1,728,880 6/01/27 ................................................................................. 2,635,000 2,812,098 Port Huron GO, Limited Tax, AMBAC Insured, 5.00%, 10/01/22 ................................. 1,600,000 1,648,112 River Rouge School District GO, Refunding, FGIC Insured, 5.00%, 5/01/22 .................... 6,575,000 6,836,422 Roseville School District GO, School Building and Site, Refunding, FSA Insured, 5.00%, 5/01/31 .................................................................................. 5,000,000 5,252,700 Royal Oak Hospital Finance Authority Revenue, William Beaumont Hospital, Series M, MBIA Insured, 5.25%, 11/15/31 ................................................................................ 12,750,000 13,224,555 11/15/35 ................................................................................ 17,600,000 18,168,832 Saginaw City School District GO, School Building and Site, FSA Insured, 5.00%, 5/01/36 ..... 6,950,000 7,269,839 Saginaw Hospital Finance Authority Revenue, Covenant Medical Center, Refunding, Series E, MBIA Insured, 5.375%, 7/01/19 ......................................................................... 4,850,000 5,020,962 5.50%, 7/01/24 .......................................................................... 1,750,000 1,814,943 Saginaw Valley State University Revenue, General, AMBAC Insured, Pre-Refunded, 5.25%, 7/01/19 .................................... 2,195,000 2,272,813 General, FSA Insured, 5.00%, 7/01/37 .................................................... 5,000,000 5,233,550 General, Refunding, AMBAC Insured, 5.25%, 7/01/19 ....................................... 345,000 356,526 Series A, MBIA Insured, 5.125%, 7/01/30 ................................................. 4,315,000 4,432,541 South Macomb Disposal Authority Revenue, AMBAC Insured, 5.25%, 9/01/20 ..................... 2,000,000 2,072,660
118 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN MICHIGAN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) MICHIGAN (CONTINUED) South Redford School District GO, School Building and Site, MBIA Insured, 5.00%, 5/01/30 .................................................................................. $ 3,500,000 $ 3,650,675 Southfield Library Building Authority GO, Refunding, MBIA Insured, 5.00%, 5/01/30 .......... 6,535,000 6,829,663 a Southfield Public Schools GO, Refunding, MBIA Insured, 4.75%, 5/01/29 ...................... 9,040,000 9,204,166 Sparta Area Schools GO, School Building and Site, FGIC Insured, Pre-Refunded, 5.00%, 5/01/30 .................................................................................. 2,730,000 2,903,382 St. Clair County EDC, PCR, The Detroit Edison Co., Refunding, Series AA, AMBAC Insured, 6.40%, 8/01/24 ........................................................................... 10,000,000 10,493,800 Sturgis Public School District GO, Refunding, FGIC Insured, 5.00%, 5/01/30 ................. 4,715,000 4,943,677 Taylor Brownfield RDA, GO, Tax Increment, Series A, MBIA Insured, 5.00%, 5/01/29 ................................................................................. 2,900,000 3,022,873 5/01/34 ................................................................................. 3,945,000 4,101,459 Taylor Tax Increment Finance Authority Revenue, FSA Insured, 5.00%, 5/01/21 ................ 2,595,000 2,677,443 Tecumseh Public Schools GO, FGIC Insured, Pre-Refunded, 5.50%, 5/01/25 ................................................................................. 5,925,000 6,194,410 5/01/30 ................................................................................. 4,500,000 4,704,615 Thornapple Kellogg School District GO, School Building and Site, FSA Insured, Pre-Refunded, 5.00%, 5/01/23 ............................................... 965,000 1,017,216 FSA Insured, Pre-Refunded, 5.00%, 5/01/28 ............................................... 6,250,000 6,588,187 Refunding, FSA Insured, 5.00%, 5/01/23 .................................................. 3,035,000 3,151,210 Troy City School District GO, School Building and Site, MBIA Insured, 5.00%, 5/01/26 ....... 7,100,000 7,480,347 Warren Consolidated School District GO, FSA Insured, 4.875%, 5/01/22 ......................................................................... 8,910,000 9,120,454 Pre-Refunded, 4.875%, 5/01/22 ........................................................... 2,940,000 3,060,952 Pre-Refunded, 5.00%, 5/01/26 ............................................................ 14,450,000 15,117,012 Warren Water and Sewer Revenue, FSA Insured, Pre-Refunded, 5.125%, 11/01/23 ................ 2,450,000 2,575,391 Wayne Charter County Airport Hotel GO, Detroit Metropolitan Airport, Series A, MBIA Insured, 5.25%, 12/01/25 ......................................................................... 17,000,000 17,914,260 5.00%, 12/01/30 ......................................................................... 10,750,000 11,114,425 Wayne Charter County Airport Revenue, Detroit Metropolitan Wayne County, Series A, MBIA Insured, 5.25%, 12/01/18 ............................................................ 5,500,000 5,633,375 Wayne State University Revenues, General, AMBAC Insured, 5.00%, 11/15/30 ................................................. 3,925,000 4,142,563 General, AMBAC Insured, 5.00%, 11/15/36 ................................................. 6,000,000 6,313,500 Refunding, FGIC Insured, 5.125%, 11/15/29 ............................................... 17,900,000 18,477,633 West Bloomfield School District GO, FGIC Insured, Pre-Refunded, 6.00%, 5/01/19 ................................................................................. 2,100,000 2,224,089 5/01/20 ................................................................................. 2,000,000 2,118,180 West Branch Rose City Area School District GO, FGIC Insured, 5.50%, 5/01/24 ................ 1,400,000 1,444,604 West Ottawa Public School District GO, FGIC Insured, 5.60%, 5/01/21 ............................................................ 695,000 699,914 FGIC Insured, 5.60%, 5/01/26 ............................................................ 3,575,000 3,599,274 School Building Site, Refunding, MBIA Insured, 5.00%, 5/01/32 ........................... 6,025,000 6,240,936 Western Townships Utilities Authority GO, Sewer Disposal System, FGIC Insured, 4.75%, 1/01/23 .................................................................................. 8,500,000 8,679,010 Whitmore Lake Public School District GO, FGIC Insured, 5.00%, 5/01/32 ...................... 9,375,000 9,713,719
Quarterly Statements of Investments | 119 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN MICHIGAN INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) MICHIGAN (CONTINUED) Willow Run Community Schools GO, FSA Insured, 5.00%, 5/01/31 ............................... $ 12,550,000 $ 12,862,244 Wyoming Public Schools GO, FGIC Insured, Pre-Refunded, 5.125%, 5/01/23 ..................... 5,750,000 5,822,622 Wyoming Sewer Disposal System Revenue, Refunding, MBIA Insured, 5.00%, 6/01/27 ............. 5,700,000 5,971,263 Ypsilanti Community Utilities GO, Sanitation Sewer System No. 3, FGIC Insured, 5.00%, 5/01/32 .................................................................................. 6,065,000 6,250,710 Ypsilanti Water and Sewer Disposal System Revenue, Series C, AMBAC Insured, Pre-Refunded, 5.00%, 9/01/27 ............................................................. 2,115,000 2,226,207 Zeeland Public Schools GO, Refunding, FGIC Insured, 5.00%, 5/01/25 ......................... 3,350,000 3,510,197 --------------- 1,282,818,741 --------------- U.S. TERRITORIES 10.1% PUERTO RICO 10.1% Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Refunding, Series D, FSA Insured, 5.00%, 7/01/32 ........................................ 11,945,000 12,355,072 Series B, MBIA Insured, Pre-Refunded, 5.875%, 7/01/35 ................................... 25,000,000 26,750,250 Series D, FSA Insured, Pre-Refunded, 5.00%, 7/01/32 ..................................... 8,055,000 8,496,897 Puerto Rico Electric Power Authority Power Revenue, Refunding, Series UU, CIFG Insured, 5.00%, 7/01/26 ...................................... 6,500,000 6,879,470 Series NN, MBIA Insured, Pre-Refunded, 5.00%, 7/01/32 ................................... 20,800,000 22,106,864 Series RR, FGIC Insured, Pre-Refunded, 5.00%, 7/01/35 ................................... 14,000,000 15,077,440 Series TT, 5.00%, 7/01/32 ............................................................... 10,000,000 10,401,000 Series TT, 5.00%, 7/01/37 ............................................................... 35,000,000 36,374,800 Puerto Rico Port Authority Revenue, Series D, FGIC Insured, 7.00%, 7/01/14 ................. 7,950,000 7,959,381 --------------- TOTAL U.S. TERRITORIES ..................................................................... 146,401,174 --------------- TOTAL LONG TERM INVESTMENTS (COST $1,370,400,409) .......................................... 1,429,219,915 --------------- SHORT TERM INVESTMENTS 1.3% MUNICIPAL BONDS 1.3% MICHIGAN 1.3% b Detroit Sewage Disposal Revenue, senior lien, Refunding, Series C-2, FGIC Insured, Weekly VRDN and Put, 3.73%, 7/01/29 ................ 3,200,000 3,200,000 Series B, FSA Insured, Daily VRDN and Put, 3.90%, 7/01/33 ............................... 6,895,000 6,895,000 b Michigan State University Revenues, Series A, Daily VRDN and Put, 3.90%, 8/15/32 ........... 8,300,000 8,300,000 --------------- TOTAL SHORT TERM INVESTMENTS (COST $18,395,000) ............................................ 18,395,000 --------------- TOTAL INVESTMENTS (COST $1,388,795,409) 100.4% ............................................. 1,447,614,915 OTHER ASSETS, LESS LIABILITIES (0.4)% ...................................................... (5,610,030) --------------- NET ASSETS 100.0% .......................................................................... $1,442,004,885 ===============
See Selected Portfolio Abbreviations on page 176. 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. 120 | See Notes to Statements of Investments. | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN MINNESOTA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS 98.6% MUNICIPAL BONDS 98.6% MINNESOTA 95.7% Alexandria Lake Area Sanitation District Sanitation Sewer Board GO, Facilities, Series A, XLCA Insured, 4.375%, 2/01/25 ........................................................... $ 1,025,000 $ 1,010,681 Anoka County Housing and RDA, GO, Housing Development, Refunding, AMBAC Insured, 4.875%, 2/01/24 ........................................................................ 2,195,000 2,274,152 5.00%, 2/01/34 ......................................................................... 2,000,000 2,080,180 Anoka-Hennepin ISD No. 11 GO, School District Credit Enhancement Program, Series A, FSA Insured, 5.00%, 2/01/20 ............................................................. 6,130,000 6,329,899 Bemidji Health Care Facilities First Mortgage Revenue, North Country Health Services, Radian Insured, 5.00%, 9/01/24 .......................................................... 2,000,000 2,053,580 Bemidji Lease Revenue, Minnesota State Bureau of Criminal Apprehension, MBIA Insured, 5.70%, 12/01/17 ......................................................................... 120,000 123,586 Bloomington ISD No. 271 GO, School Building, Refunding, Series C, FSA Insured, 4.25%, 2/01/24 ................................................................................. 3,635,000 3,537,437 Bloomington Port Authority Lease Revenue, City Hall Lease Obligation, 5.00%, 2/01/18 ...... 1,045,000 1,079,799 Brooklyn Center ISD No. 286 GO, FGIC Insured, 5.00%, 2/01/22 .............................. 1,000,000 1,045,500 Buffalo ISD No. 877 GO, Refunding, MBIA Insured, 5.00%, 2/01/22 ........................... 4,255,000 4,320,229 Burnsville MFR, Coventry Court, Refunding, Series A, GNMA Secured, 5.90%, 9/20/19 ......................................................................... 400,000 418,452 5.95%, 9/20/29 ......................................................................... 1,275,000 1,331,776 6.00%, 9/20/34 ......................................................................... 1,000,000 1,044,940 Byron ISD No. 531 GO, School Building, Series A, FGIC Insured, 5.00%, 2/01/24 ............. 2,015,000 2,118,712 Cambridge ISD No. 911 GO, Capital Appreciation, Series B, MBIA Insured, zero cpn., 2/01/30 ....................... 2,240,000 723,565 Series A, MBIA Insured, 4.25%, 2/01/24 ................................................. 1,235,000 1,208,942 Cass Lake ISD No. 115 GO, Refunding, FGIC Insured, 5.00%, 2/01/22 ......................... 3,805,000 3,970,251 Centennial ISD No. 012 GO, Series A, FSA Insured, 5.00%, 2/01/21 .......................... 1,000,000 1,045,500 Chaska ISD No. 112 GO, School Building, Series A, MBIA Insured, 4.50%, 2/01/28 ............ 10,000,000 9,946,200 Chisago County GO, Capital Improvement, Series A, MBIA Insured, 4.75%, 2/01/26 ............ 3,615,000 3,728,692 Cohasset PCR, Collateral Allete Project, Refunding, Radian Insured, 4.95%, 7/01/22 ........ 3,010,000 3,081,999 Commissioner of Iron Range Resources and Rehabilitation Educational Facilities Revenue, XLCA Insured, 4.50%, 10/01/21 ........................................................... 1,290,000 1,304,371 Dakota County Housing and RDA, SFMR, GNMA Secured, 5.75%, 4/01/18 ......................................................................... 161,000 163,760 5.85%, 10/01/30 ........................................................................ 274,000 278,721 a Dayton GO, Improvement, Series A, XLCA Insured, 4.375%, 2/01/34 ........................... 7,610,000 7,359,479 Deer River ISD No. 317 GO, FSA Insured, 6.00%, 2/01/25 .................................... 1,325,000 1,395,835 Eagan GO, Recreational Facilities, Series A, MBIA Insured, 5.00%, 2/01/21 ................. 3,075,000 3,189,728 Eagan MFHR, Forest Ridge Apartments, Refunding, Series A, GNMA Secured, 5.95%, 9/20/29 ......................................................................... 1,700,000 1,774,783 6.00%, 9/20/34 ......................................................................... 1,480,000 1,545,194 Eden Prairie MFHR, Olympic Ridge, Refunding, Series A, GNMA Secured, 6.25%, 1/20/31 ....................... 2,000,000 2,018,980 Parkway Apartments Project, Refunding, Series A, GNMA Secured, 5.80%, 2/20/32 .......... 7,380,000 7,598,669 Elk River ISD Number 728 GO, School Building, Refunding, Series A, FSA Insured, 4.25%, 2/01/24 ................................................................................. 6,265,000 6,132,808
Quarterly Statements of Investments | 121 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN MINNESOTA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) MINNESOTA (CONTINUED) Farmington ISD No. 192 GO, MBIA Insured, 5.25%, 2/01/24 ........................................................... $ 5,915,000 $ 6,186,321 School Building, Series B, FSA Insured, 5.00%, 2/01/23 ................................. 3,000,000 3,157,590 School Building, Series B, FSA Insured, 4.75%, 2/01/27 ................................. 17,075,000 17,525,097 Ham Lake GO, Anoka County Housing, Senior Housing Project, Series B, MBIA Insured, 6.10%, 1/01/26 ................................................................................. 2,180,000 2,181,918 Hastings ISD No. 200 GO, Refunding, Series A, FSA Insured, 4.50%, 2/01/22 ................. 2,700,000 2,727,756 Hibbing Health Care Facilities Revenue, The Duluth Clinic Ltd., FSA Insured, Pre-Refunded, 5.00%, 11/01/25 ......................................................................... 8,000,000 8,503,600 Hopkins Elderly Housing Revenue, St. Therese Project, Refunding, Series A, GNMA Secured, 5.60%, 11/20/17 ........................................................................ 750,000 768,540 5.70%, 11/20/32 ........................................................................ 3,000,000 3,069,510 Hopkins ISD No. 270 GO, FGIC Insured, 5.125%, 2/01/22 ..................................... 3,880,000 4,076,988 Hubbard County Housing and RDA, GO, Heritage Center Project, MBIA Insured, 5.50%, 8/01/27 ................................................................................. 1,085,000 1,137,330 Lake Crystal Wellcome Memorial Area Schools ISD No. 2071 GO, School Building, Series B, MBIA Insured, 5.00%, 2/01/34 ............................................................ 3,285,000 3,453,159 Lake Superior ISD No. 381 GO, Series A, FSA Insured, 5.00%, 4/01/23 ....................... 4,195,000 4,415,196 Lakeview ISD No. 2167 GO, MBIA Insured, 5.25%, 2/01/26 .................................... 3,705,000 3,874,948 Lakeville ISD No. 194 GO, Series A, FGIC Insured, 5.00%, 2/01/23 .......................... 10,180,000 10,700,707 Mahtomedi ISD No. 832 GO, FSA Insured, 5.00%, 2/01/18 ..................................... 3,240,000 3,376,210 Maple Grove HDA Municipal Facility Lease Revenue, AMBAC Insured, Pre-Refunded, 5.55%, 2/01/17 ................................................................................. 280,000 283,382 Medford ISD No. 763 GO, Series A, FSA Insured, 5.125%, 2/01/29 ............................ 2,700,000 2,812,455 Metropolitan Council Minneapolis-St. Paul Metropolitan Area GO, Wastewater, Series B, 4.50%, 12/01/26 ......................................................................... 5,000,000 5,006,950 Minneapolis and St. Paul Metropolitan Airports Commission Airport Revenue, Series A, AMBAC Insured, Pre-Refunded, 5.20%, 1/01/24 .................................. 5,000,000 5,092,050 Series A, FGIC Insured, Pre-Refunded, 5.125%, 1/01/31 .................................. 7,000,000 7,214,690 Series A, FGIC Insured, Pre-Refunded, 5.25%, 1/01/32 ................................... 7,000,000 7,331,100 Series C, FGIC Insured, Pre-Refunded, 5.25%, 1/01/26 ................................... 2,000,000 2,094,600 Series C, FGIC Insured, Pre-Refunded, 5.25%, 1/01/32 ................................... 9,000,000 9,425,700 Minneapolis CDA and St. Paul Housing and RDAR, Health Care Facilities, Carondelet, Series B, BIG Insured, Pre-Refunded, 8.875%, 11/01/15 ................................... 650,000 746,727 Minneapolis GO, Sports Arena Project, Refunding, 5.125%, 10/01/20 ...................................... 8,340,000 8,426,152 Sports Arena Project, Refunding, 5.20%, 10/01/24 ....................................... 3,750,000 3,790,387 Various Purpose, 5.125%, 12/01/28 ...................................................... 3,000,000 3,131,160 Minneapolis Health Care Revenue, Fairview Health Services, AMBAC Insured, 5.00%, 11/15/34 ................................................................................ 12,645,000 13,174,952 Minneapolis MFR, Riverside Plaza, Refunding, GNMA Secured, 5.20%, 12/20/30 ................ 5,000,000 5,036,350 Minneapolis Revenue, University Gateway Project, Series A, Pre-Refunded, 5.25%, 12/01/24 ................................................................................ 3,000,000 3,023,160 Minneapolis Special School District No. 001 COP, Refunding, Series A, MBIA Insured, 4.50%, 2/01/21 ...................................... 2,715,000 2,750,702 Series A, FSA Insured, 5.00%, 2/01/21 .................................................. 1,950,000 2,021,916
122 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN MINNESOTA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) MINNESOTA (CONTINUED) Minnesota Agriculture and Economic Development Board Revenue, Benedictine Health, Refunding, Series A, MBIA Insured, 5.125%, 2/15/29 ................. $ 14,625,000 $ 15,067,406 Evangelical Lutheran Good Samaritan, Society Project, AMBAC Insured, 5.15%, 12/01/22 ............................................................................. 4,870,000 4,992,578 Evangelical Lutheran Good Samaritan, Society Project, AMBAC Insured, Pre-Refunded, 5.15%, 12/01/22 ...................................................................... 310,000 318,367 Health Care System, Refunding, Series A, MBIA Insured, 5.75%, 11/15/26 ................. 365,000 375,238 Health Care System, Series A, MBIA Insured, Pre-Refunded, 5.75%, 11/15/26 .............. 17,635,000 18,145,533 Minnesota State Colleges and University Revenue, Fund, Series A, MBIA Insured, 5.00%, 10/01/22 ............................................................................... 1,745,000 1,849,648 10/01/23 ............................................................................... 1,825,000 1,933,113 10/01/24 ............................................................................... 1,900,000 2,009,820 10/01/25 ............................................................................... 1,155,000 1,221,759 10/01/26 ............................................................................... 1,715,000 1,811,657 10/01/32 ............................................................................... 5,540,000 5,824,424 Minnesota State GO, 5.00%, 6/01/26 ........................................................ 14,585,000 15,473,518 Minnesota State HFAR, Rental Housing, Refunding, Series D, MBIA Insured, 5.90%, 8/01/15 ...................... 730,000 731,737 Rental Housing, Refunding, Series D, MBIA Insured, 5.95%, 2/01/18 ...................... 225,000 225,522 Rental Housing, Refunding, Series D, MBIA Insured, 6.00%, 2/01/22 ...................... 230,000 230,511 SFM, Series B, 5.00%, 7/01/13 .......................................................... 55,000 55,906 SFM, Series D, 5.45%, 1/01/26 .......................................................... 2,110,000 2,135,003 SFM, Series E, AMBAC Insured, 5.40%, 1/01/25 ........................................... 3,030,000 3,062,966 SFM, Series G, AMBAC Insured, 6.25%, 7/01/26 ........................................... 290,000 291,989 Minnesota State Higher Education Facilities Authority Revenue, Bethel, Mandatory Put 4/01/19, Refunding, 5.10%, 4/01/28 ............................... 7,700,000 7,742,581 St. John's University, Series 5-I, MBIA Insured, Pre-Refunded, 5.25%, 10/01/21 ......... 1,750,000 1,848,735 St. John's University, Series 5-I, MBIA Insured, Pre-Refunded, 5.25%, 10/01/26 ......... 1,500,000 1,584,630 Minnetonka MFHR, Cedar Hills Project, Refunding, Series A, GNMA Secured, 5.90%, 10/20/19 ........................................................................ 1,750,000 1,830,728 5.95%, 10/20/29 ........................................................................ 5,955,000 6,228,096 Moorhead EDA, GO, Tax Increment, Series A, MBIA Insured, 5.25%, 2/01/28 ................... 1,890,000 1,963,634 New Brighton GO, Tax Increment, Series A, MBIA Insured, 5.00%, 2/01/32 ................................................. 4,110,000 4,325,200 a Series B, MBIA Insured, 4.375%, 2/01/33 ................................................ 3,605,000 3,520,535 New Hope MFR, North Ridge, Series A, GNMA Secured, Pre-Refunded, 6.05%, 1/01/17 ......................................................................... 390,000 392,601 6.20%, 1/01/31 ......................................................................... 5,470,000 5,505,555 Nobles County Housing and RDA Public Project Revenue, Annual Appropriation Lease Obligation, AMBAC Insured, Pre-Refunded, 5.625%, 2/01/22 ................................ 1,230,000 1,286,125 Northern Municipal Power Agency Electric System Revenue, Refunding, FSA Insured, 5.00%, 1/01/12 ................................................................................. 1,030,000 1,057,295 Osseo ISD No. 279 GO, Series A, FSA Insured, 5.00%, 2/01/20 ............................... 3,000,000 3,115,800 Park Rapids ISD No. 309 GO, MBIA Insured, 4.75%, 2/01/21 ......................................................................... 2,500,000 2,538,850 5.00%, 2/01/25 ......................................................................... 3,000,000 3,058,530 Pine City Health Care and Housing Revenue, North Branch, Series A, GNMA Secured, 5.00%, 10/20/38 ................................................................................ 4,280,000 4,372,362
Quarterly Statements of Investments | 123 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN MINNESOTA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) MINNESOTA (CONTINUED) Pipestone-Jasper ISD No. 2689 GO, Refunding, Series 2004-A, FSA Insured, 5.00%, 3/01/20 ................................................................................. $ 1,595,000 $ 1,680,604 Plymouth Health Facilities Revenue, Westhealth Project, Series A, FSA Insured, 6.25%, 6/01/16 ......................................................................... 1,600,000 1,618,880 6.125%, 6/01/24 ........................................................................ 1,815,000 1,835,328 Prior Lake ISD No. 719 GO, FGIC Insured, 5.125%, 2/01/19 .......................................................... 1,140,000 1,194,424 FSA Insured, 5.50%, 2/01/20 ............................................................ 2,255,000 2,347,365 FSA Insured, 5.50%, 2/01/21 ............................................................ 2,590,000 2,696,086 Series C, MBIA Insured, 5.00%, 2/01/21 ................................................. 2,000,000 2,081,840 Series C, MBIA Insured, 5.00%, 2/01/23 ................................................. 6,025,000 6,262,987 Robbinsdale GO, Housing Development, Senior Housing Project, Series B, FGIC Insured, Pre-Refunded, 5.875%, 1/01/31 ........................................................... 2,160,000 2,268,778 Robbinsdale ISD No. 281 GO, Refunding, Series A, MBIA Insured, 4.50%, 2/01/22 ............. 3,000,000 3,023,700 Rochester Electric Utility Revenue, AMBAC Insured, 5.25%, 12/01/24 ........................ 3,000,000 3,117,000 Rochester Health Care Facilities Revenue, Mayo Foundation, Refunding, Series B, 5.50%, 11/15/27 ................................................................................ 4,000,000 4,091,640 Rochester ISD No. 535 GO, Series A, MBIA Insured, 5.00%, 2/01/28 ................................................................................ 1,385,000 1,451,272 2/01/29 ................................................................................ 1,455,000 1,523,661 Rosemount ISD No. 196 GO, Series A, MBIA Insured, 4.70%, 2/01/25 .......................... 1,000,000 1,021,920 Rush City ISD No. 139 GO, School Building, MBIA Insured, 5.00%, 2/01/21 ......................................................................... 1,680,000 1,763,866 5.125%, 2/01/26 ........................................................................ 4,245,000 4,481,446 Sartell ISD No. 748 GO, Refunding, Series A, FSA Insured, 4.125%, 8/01/20 ........................................................................ 1,785,000 1,757,297 4.25%, 2/01/22 ......................................................................... 2,810,000 2,767,681 Sauk Rapids ISD No. 47 GO, School Building, Refunding, Series A, FSA Insured, 5.00%, 2/01/22 ...................... 2,200,000 2,328,128 School Building, Refunding, Series A, FSA Insured, 4.50%, 2/01/25 ...................... 2,175,000 2,184,178 Series A, MBIA Insured, 5.75%, 2/01/23 ................................................. 2,740,000 2,911,935 Series A, MBIA Insured, 5.75%, 2/01/26 ................................................. 5,000,000 5,313,750 Scott County GO, MBIA Insured, 5.00%, 2/01/33 ............................................. 5,555,000 5,753,702 Scott County Housing and Redevelopment Authority Facilities Lease Revenue, AMBAC Insured, 5.70%, 2/01/29 .......................................................................... 1,380,000 1,426,465 Scott County Housing and Redevelopment Authority GO, River City Centre Project, Series A, FSA Insured, Pre-Refunded, 5.375%, 2/01/27 ........ 1,520,000 1,536,659 Savage City, Hamilton Apartments Project, AMBAC Insured, Pre-Refunded, 5.70%, 2/01/33 .............................................................................. 2,285,000 2,377,771 Scott County Housing and Redevelopment Authority Special Benefits Tax Revenue Balloon, River City Centre Project, Series B, AMBAC Insured, Pre-Refunded, 5.50%, 2/01/27 ........ 675,000 682,938 Scott County Housing and Redevelopment Authority Tax Increment Development Revenue, River City Centre Project, Series E, FSA Insured, Pre-Refunded, 5.375%, 2/01/25 ......... 1,170,000 1,182,823 Shakopee Public Utilities Commission Public Utilities Revenue, MBIA Insured, Pre-Refunded, 6.00%, 2/01/28 .......................................................................... 2,530,000 2,620,827 South Washington County ISD No. 833 GO, Series B, FSA Insured, 5.00%, 2/01/23 ............. 4,000,000 4,144,080 Southeastern Multi-County Housing and RDAR, Housing Development, Goodhue County Apartments, Series B, MBIA Insured, Pre-Refunded, 5.75%, 1/01/31 ........................ 2,415,000 2,529,278
124 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MINNESOTA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) MINNESOTA (CONTINUED) Southern Minnesota Municipal Power Agency Power Supply System Revenue, Capital Appreciation, Refunding, Series A, MBIA Insured, zero cpn., 1/01/19 ............ $ 5,875,000 $ 3,546,326 Capital Appreciation, Refunding, Series A, MBIA Insured, zero cpn., 1/01/20 ............ 14,035,000 8,070,546 Capital Appreciation, Refunding, Series A, MBIA Insured, zero cpn., 1/01/23 ............ 4,000,000 1,991,200 Capital Appreciation, Refunding, Series A, MBIA Insured, zero cpn., 1/01/26 ............ 5,000,000 2,160,300 Capital Appreciation, Refunding, Series A, MBIA Insured, zero cpn., 1/01/27 ............ 6,600,000 2,715,174 Capital Appreciation, Refunding, Series C, AMBAC Insured, zero cpn., 1/01/18 ........... 15,935,000 10,089,405 Series A, MBIA Insured, ETM, 5.75%, 1/01/18 ............................................ 1,000,000 1,086,860 St. Clair ISD No. 75 GO, MBIA Insured, 5.70%, 4/01/22 ..................................... 2,250,000 2,325,645 St. Cloud Health Care Revenue, St. Cloud Hospital Obligation, Group A, FSA Insured, 5.875%, 5/01/30 ................................................................................. 17,785,000 18,823,822 St. Cloud Hospital Facilities Revenue, St. Cloud Hospital, Refunding, Series A, AMBAC Insured, 5.00%, 7/01/15 ................................................................. 1,165,000 1,171,874 St. Cloud Housing and RDA Sales Tax Revenue, Paramount Theater Project, Refunding, Series A, FGIC Insured, 5.00%, 3/01/22 .................................................. 1,000,000 1,006,780 St. Michael ISD No. 885 GO, FSA Insured, 5.00%, 2/01/23 ............................................................ 3,300,000 3,450,150 School Building, Refunding, FSA Insured, 5.00%, 2/01/24 ................................ 3,735,000 3,936,690 School Building, Series A, FSA Insured, 4.75%, 2/01/29 ................................. 5,000,000 5,124,550 St. Paul ISD No. 625 GO, School Building, Series B, FSA Insured, 4.25%, 2/01/21 ................................. 1,000,000 988,720 Series C, FSA Insured, 6.00%, 2/01/20 .................................................. 1,600,000 1,656,656 St. Peter GO, Hospital, Series A, MBIA Insured, 5.00%, 9/01/32 ............................ 6,805,000 6,967,844 Upsala ISD No. 487 GO, School Building, FGIC Insured, 5.00%, 2/01/22 ...................... 1,140,000 1,198,311 Walker-Hakensack-Akeley ISD No. 113 GO, Series A, FSA Insured, 6.00%, 2/01/23 ................................................................................ 1,160,000 1,222,014 2/01/25 ................................................................................ 1,300,000 1,369,498 Washington County Housing and RDAR, Government Housing, Landfall Terrace Project, Refunding, 5.35%, 2/01/22 ......................................................................... 1,000,000 1,010,080 5.40%, 8/01/27 ......................................................................... 2,015,000 2,035,694 Watertown ISD No. 111 GO, Series A, FSA Insured, 5.00%, 2/01/24 ........................... 2,725,000 2,872,150 Western Minnesota Municipal Power Agency Revenue, MBIA Insured, 5.00%, 1/01/26 ........................................................... 8,565,000 8,893,382 Refunding, Series A, AMBAC Insured, 5.50%, 1/01/12 ..................................... 2,745,000 2,773,411 Refunding, Series A, AMBAC Insured, 5.50%, 1/01/13 ..................................... 4,500,000 4,546,575 Series A, FSA Insured, 5.00%, 1/01/36 .................................................. 5,000,000 5,228,150 Series A, MBIA Insured, 5.00%, 1/01/30 ................................................. 5,200,000 5,386,316 Willmar GO, Rice Memorial Hospital Project, FSA Insured, 5.00%, 2/01/19 ................................................................................ 2,000,000 2,096,100 2/01/22 ................................................................................ 2,550,000 2,659,420 2/01/25 ................................................................................ 3,000,000 3,124,140 2/01/32 ................................................................................ 5,415,000 5,605,933 Worthington ISD No. 518 GO, Series A, FSA Insured, 5.00%, 2/01/24 ......................... 5,000,000 5,097,550 --------------- 580,091,230 ---------------
Quarterly Statements of Investments | 125 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN MINNESOTA INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) U.S. TERRITORIES 2.9% PUERTO RICO 2.5% Puerto Rico Commonwealth GO, Public Improvement, FSA Insured, Pre-Refunded, 5.00%, 7/01/23 .............................................. $ 1,545,000 $ 1,614,896 FSA Insured, Pre-Refunded, 5.125%, 7/01/30 ............................................. 580,000 608,948 Refunding, FSA Insured, 5.00%, 7/01/23 ................................................. 955,000 990,898 Refunding, FSA Insured, 5.125%, 7/01/30 ................................................ 420,000 436,140 Puerto Rico Electric Power Authority Power Revenue, Refunding, Series SS, MBIA Insured, 5.00%, 7/01/25 .......................................................................... 5,000,000 5,264,300 Puerto Rico Municipal Finance Agency Revenue, Series A, FSA Insured, 5.00%, 8/01/30 ....... 1,000,000 1,051,890 Puerto Rico PBA Guaranteed Revenue, Government Facilities, Refunding, Series F, XLCA Insured, 5.25%, 7/01/25 ............................................................ 2,500,000 2,806,300 Puerto Rico Port Authority Revenue, Series D, FGIC Insured, 7.00%, 7/01/14 ................ 1,215,000 1,216,434 Puerto Rico Public Finance Corp. Commonwealth Revenue, Series E, AMBAC Insured, 5.50%, 8/01/27 ......................................................................... 625,000 729,100 ETM, 5.50%, 8/01/27 .................................................................... 375,000 439,140 --------------- 15,158,046 --------------- VIRGIN ISLANDS 0.4% Virgin Islands PFAR, Gross Receipts Taxes Loan Note, FSA Insured, 5.25%, 10/01/20 ............................................................................... 1,160,000 1,250,422 10/01/21 ............................................................................... 1,000,000 1,075,980 --------------- 2,326,402 --------------- TOTAL U.S. TERRITORIES .................................................................... 17,484,448 --------------- TOTAL LONG TERM INVESTMENTS (COST $579,164,434) ........................................... 597,575,678 --------------- SHORT TERM INVESTMENTS 1.4% MUNICIPAL BONDS 1.4% MINNESOTA 1.4% b Hennepin County GO, Refunding, Series A, Weekly VRDN and Put, 3.61%, 12/01/25 ............. 965,000 965,000 b Minneapolis GO, Convention Center, Weekly VRDN and Put, 3.61%, 12/01/18 ................................ 6,320,000 6,320,000 Library, Weekly VRDN and Put, 3.61%, 12/01/32 .......................................... 1,020,000 1,020,000 --------------- 8,305,000 --------------- U.S. TERRITORIES 0.0% c PUERTO RICO 0.0% c b Puerto Rico Commonwealth Government Development Bank Revenue, Refunding, MBIA Insured, Weekly VRDN and Put, 3.61%, 12/01/15 .................................................... 100,000 100,000 --------------- TOTAL SHORT TERM INVESTMENTS (COST $8,405,000) ............................................ 8,405,000 --------------- TOTAL INVESTMENTS (COST $587,569,434) 100.0% .............................................. 605,980,678 OTHER ASSETS, LESS LIABILITIES (0.0)% c ................................................... (60,610) --------------- NET ASSETS 100.0% ......................................................................... $ 605,920,068 ===============
See Selected Portfolio Abbreviations on page 176. 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. c Rounds to less than 0.1% of net assets. 126 | See Notes to Statements of Investments. | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN MISSOURI TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS 99.7% MUNICIPAL BONDS 99.7% MISSOURI 87.4% Bi-State Development Agency Missouri Illinois Metropolitan District Revenue, Metrolink Cross County Project, Series B, FSA Insured, 5.00%, 10/01/32 ............................. $ 4,500,000 $ 4,672,485 Boone County IDA Health Care Revenue, Retirement Center Project, GNMA Secured, 5.70%, 10/20/22 ................................................................................. 1,515,000 1,617,156 Cape Girardeau County IDA Health Care Facilities Revenue, Southeast Missouri Hospital Assn., 5.00%, 6/01/36 ....................................... 7,500,000 7,517,475 St. Francis Medical Center, Series A, 5.50%, 6/01/27 .................................... 6,350,000 6,680,073 St. Francis Medical Center, Series A, 5.50%, 6/01/32 .................................... 5,000,000 5,259,900 Cape Girardeau County IDA Solid Waste Disposal Revenue, Procter and Gamble Paper Products, 5.30%, 5/15/28 ................................................................. 6,875,000 7,004,456 Curators of the University of Missouri System Facilities Revenue, Series A, 5.00%, 11/01/31 ............................................................... 17,845,000 18,537,208 System Facilities, Refunding, Series A, 5.00%, 11/01/25 ................................. 15,970,000 16,762,431 System Facilities, Series A, 5.00%, 11/01/26 ............................................ 4,500,000 4,720,050 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 1,336,374 Grandview COP, FGIC Insured, 5.00%, 1/01/23 ................................................ 2,410,000 2,502,399 Hannibal IDA Health Facilities Revenue, Refunding, 5.00%, 3/01/22 .......................... 1,000,000 1,025,550 Hazelwood School District GO, Missouri Direct Deposit Page, Series A, FGIC Insured, 5.00%,3/01/24 ............................................................................ 3,000,000 3,144,870 Hickory County School District R-1 Skyline GO, Direct Deposit Program, 6.05%, 3/01/20 .......................................................................... 800,000 844,000 Refunding, 6.05%, 3/01/20 ............................................................... 300,000 316,899 High Ridge Fire Protection District GO, FSA Insured, Pre-Refunded, 5.375%, 11/01/20 ........ 1,000,000 1,006,940 Howard Bend Levee District Special Tax, Pre-Refunded, 5.65%, 3/01/13 .......................................................................... 1,000,000 1,040,320 5.85%, 3/01/19 .......................................................................... 4,000,000 4,174,600 Jackson County Consolidated School District No. 2 GO, Direct Deposit Program, 5.20%, 3/01/20 .................................................................................. 2,000,000 2,086,700 Jackson County Reorganized School District No. 7 Lee's Summit GO, Direct Deposit, Refunding and Improvement, FSA Insured, 5.00%, 3/01/21 ................................... 5,700,000 5,981,124 Jackson County Special Obligation Revenue, Harry S. Truman Sports Complex, AMBAC Insured, 5.00%, 12/01/28 .......................... 26,595,000 27,990,440 MBIA Insured, 5.00%, 12/01/27 ........................................................... 3,105,000 3,216,376 Jasper County Reorganized School District No. R-7 GO, Direct Deposit Program, 6.00%, 3/01/20 .................................................................................. 1,025,000 1,080,063 Jefferson County Conservation Public Water Supply District No. C-1 Waterworks Revenue, AMBAC Insured, 5.00%, 12/01/26 ........................................................... 4,500,000 4,608,360 Jefferson County Consolidated School District No. 006 Lease Participation COP, FSA Insured, 5.00%, 3/01/25 .................................................................. 1,050,000 1,104,947 Joplin IDA Health Facilities Revenue, Freeman Health Systems Project, 5.50%, 2/15/29 .......................................................................... 2,000,000 2,088,440 5.75%, 2/15/35 .......................................................................... 2,500,000 2,682,175 a Kansas City IDA Revenue, Kansas City Missouri IDA, AMBAC Insured, 4.50%, 12/01/32 ......................................................................... 10,000,000 9,806,600 5.00%, 12/01/32 ......................................................................... 15,000,000 15,749,550 Kansas City Sanitary Sewer System Revenue, Series B, MBIA Insured, 5.00%, 1/01/25 .......... 620,000 651,050
Quarterly Statements of Investments | 127 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN MISSOURI TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) MISSOURI (CONTINUED) Kansas City Tax Increment Financing Commerce Tax Increment Revenue, Blue Parkway Town Center Project, MBIA Insured, 5.00%, 7/01/27 ............................................. $ 1,730,000 $ 1,810,635 Lake of the Ozarks Community Bridge Corp. Bridge System Revenue, Refunding, 5.25%, 12/01/14 ................................................................................ 750,000 768,458 12/01/26 ................................................................................ 800,000 814,256 Lee's Summit IDAR, John Knox Village Project, Pre-Refunded, 6.55%, 8/15/10 .......................................................................... 1,000,000 1,005,380 6.625%, 8/15/13 ......................................................................... 2,000,000 2,011,040 5.70%, 8/15/22 .......................................................................... 1,500,000 1,629,180 Lee's Summit Water and Sewer Revenue, Series A, AMBAC Insured, 5.00%, 7/01/22 .............. 1,995,000 2,073,643 Metropolitan St. Louis Sewer District Wastewater Systems Revenue, Series A, MBIA Insured, 5.00%, 5/01/34 .................................................................. 24,730,000 25,829,001 Missouri Development Finance Board Cultural Facilities Revenue, Nelson Gallery Foundation, Series A, MBIA Insured, 5.00%, 12/01/30 ...................................... 9,500,000 9,811,885 Missouri Joint Municipal Electric Utility Commission Power Project Revenue, Iatan 2 Project, Series A, AMBAC Insured, 5.00%, 1/01/34 ................................ 25,465,000 26,619,583 Plum Point Project, MBIA Insured, 5.00%, 1/01/28 ........................................ 5,235,000 5,487,589 Plum Point Project, MBIA Insured, 5.00%, 1/01/34 ........................................ 24,945,000 26,057,796 Missouri School Board Assn. Lease COP, Republic R-3 School District Project, Refunding, FSA Insured, 6.00%, 3/01/16 .............................................................. 2,220,000 2,224,196 Missouri Southern State College Revenue, Auxiliary Enterprise System, MBIA Insured, 5.50%, 4/01/23 ........................................................................... 1,200,000 1,263,144 Missouri State Board of Public Buildings State Office Building, Special Obligation, Series A, 5.125%, 5/01/26 ................................................................ 3,960,000 4,126,716 Missouri State Development Finance Board Infrastructure Facilities Revenue, Midtown Redevelopment Project, Series A, MBIA Insured, Pre-Refunded, 5.75%, 4/01/22 ...... 10,000,000 10,516,600 Missouri State Development Finance Board Recreation Facilities Revenue, YMCA Greater St. Louis Project, Series A, 5.40%, 9/01/18 .............................................. 7,420,000 7,593,554 Missouri State Development Finance Board Solid Waste Disposal Revenue, Procter and Gamble Paper Product, 5.20%, 3/15/29 ..................................................... 3,000,000 3,245,760 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 2,106,909 Missouri State Environmental Improvement and Energy Resources Authority Water PCR, State Revolving Fund, Series A, 7.00%, 10/01/10 ............................................................... 475,000 476,306 Series A, 6.55%, 7/01/14 ................................................................ 890,000 890,943 Series A, 5.75%, 1/01/16 ................................................................ 150,000 150,918 Series B, 7.125%, 12/01/10 .............................................................. 195,000 195,530 Series B, 5.80%, 1/01/15 ................................................................ 125,000 125,153 Series B, 6.05%, 7/01/16 ................................................................ 485,000 485,446 Series B, 7.20%, 7/01/16 ................................................................ 825,000 826,015 Series B, 5.50%, 7/01/21 ................................................................ 710,000 742,554 Series B, Pre-Refunded, 5.50%, 7/01/21 .................................................. 730,000 768,347 Missouri State GO, State Water Pollution Control, Series A, 5.00%, 6/01/26 ................................. 3,785,000 3,903,546 Stormwater Control, Series A, 5.00%, 6/01/26 ............................................ 1,895,000 1,954,351
128 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN MISSOURI TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) MISSOURI (CONTINUED) Missouri State HDC, MFHR, FHA Insured, 8.50%, 12/01/29 ...................................................... $ 65,000 $ 66,180 SFMR, Homeowner Loan, Series D, GNMA Secured, 6.125%, 3/01/28 ........................... 100,000 101,344 SFMR, Series B, GNMA Secured, 6.45%, 9/01/27 ............................................ 215,000 217,892 Missouri State Health and Educational Facilities Authority Educational Facilities Revenue, Maryville University of St. Louis Project, Pre-Refunded, 6.50%, 6/15/22 ................. 1,750,000 1,840,930 Maryville University of St. Louis Project, Pre-Refunded, 6.75%, 6/15/30 ................. 4,500,000 4,778,325 Washington University, Refunding, Series B, 5.00%, 3/01/30 .............................. 14,000,000 14,387,800 Washington University, Series A, 5.00%, 11/15/37 ........................................ 9,150,000 9,327,144 Washington University, Series B, Pre-Refunded, 6.00%, 3/01/30 ........................... 13,550,000 14,432,511 Webster University, MBIA Insured, 5.30%, 4/01/27 ........................................ 8,000,000 8,376,320 Missouri State Health and Educational Facilities Authority Health Facilities Revenue, Children's Mercy Hospital, 5.30%, 5/15/28 ............................................... 12,420,000 12,624,930 Freeman Health Systems Project, 5.25%, 2/15/28 .......................................... 2,750,000 2,775,878 Improvement, Jefferson Memorial Hospital, Refunding, Radian Insured, 5.00%, 8/15/21 ..... 4,585,000 4,707,236 Improvement, Jefferson Memorial Hospital, Refunding, Radian Insured, 5.25%, 8/15/28 ..... 4,900,000 5,102,027 Lake of the Ozarks General Hospital, 6.25%, 2/15/11 ..................................... 335,000 337,747 Lake of the Ozarks General Hospital, Refunding, 6.50%, 2/15/21 .......................... 330,000 333,148 Lake Regional Health Systems Project, 5.60%, 2/15/25 .................................... 1,250,000 1,302,950 Lake Regional Health Systems Project, 5.70%, 2/15/34 .................................... 2,750,000 2,883,650 St. Luke's Episcopal, 5.00%, 12/01/34 ................................................... 7,500,000 7,618,950 St. Luke's Episcopal, Presbyterian Hospital, FSA Insured, 5.25%, 12/01/26 ............... 8,500,000 8,912,590 Missouri State Health and Educational Facilities Authority Revenue, Educational Facilities, Washington University, Series A, 5.00%, 2/15/33 ................. 15,125,000 15,646,056 Senior Living Facilities, Lutheran Senior Services, Refunding, Series B, 5.125%, 2/01/22 ............................................................................... 2,900,000 2,999,151 Senior Living Facilities, Lutheran Senior Services, Refunding, Series B, 5.125%, 2/01/27 ............................................................................... 2,700,000 2,771,010 Senior Living Facilities, Lutheran Senior Services, Series A, 5.00%, 2/01/25 ............ 1,500,000 1,525,665 Senior Living Facilities, Lutheran Senior Services, Series A, 5.375%, 2/01/35 ........... 4,655,000 4,824,489 SSM Healthcare System, Series A, AMBAC Insured, Pre-Refunded, 5.25%, 6/01/28 ............ 16,385,000 17,385,140 Missouri State Highways and Transportation Commission State Road Revenue, Series A, ........ Pre-Refunded, 5.00%, 2/01/21 ................................................................................. 10,000,000 10,485,400 2/01/22 ................................................................................. 1,500,000 1,572,810 Missouri State Housing Development Commission Revenue, SF, Homeowner Loan, Series C-1, GNMA Secured, 5.90%, 9/01/25 .......................................................................... 1,290,000 1,322,263 5.95%, 3/01/28 .......................................................................... 920,000 943,267 Missouri State Housing Development Commission SFMR, Homeownership Loan Program, Series A-1, GNMA Secured, 4.75%, 9/01/32 ................................................. 2,500,000 2,470,825 Missouri State University Auxiliary Enterprise System Revenue, Series A, XLCA Insured, 5.00%, 4/01/29 ........................................................................... 6,665,000 6,997,050 Monarch-Chesterfield Levee District Revenue, MBIA Insured, 5.75%, 3/01/19 .................. 1,920,000 2,024,986
Quarterly Statements of Investments | 129 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN MISSOURI TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) MISSOURI (CONTINUED) North Kansas City Hospital Revenue, North Kansas City Hospital, Series A, FSA Insured, 5.00%, 11/15/20 ......................................................................... $ 1,000,000 $ 1,040,720 5.00%, 11/15/21 ......................................................................... 1,000,000 1,041,300 5.00%, 11/15/22 ......................................................................... 1,000,000 1,037,300 5.00%, 11/15/28 ......................................................................... 1,965,000 2,034,954 5.125%, 11/15/33 ........................................................................ 2,755,000 2,889,582 Pulaski County IDA, MFHR, St. Robert Project, Series A, GNMA Secured, 6.00%, 8/20/39 ....... 1,600,000 1,661,744 Riverside IDA, IDR, Riverside Horizons Project, Series A, ACA Insured, 5.00%, 5/01/20 ................................................................................. 1,500,000 1,553,280 5/01/27 ................................................................................. 2,000,000 2,051,780 Riverside-Quindaro Bend Levee District Levee District Improvement Revenue, L-385 Project,Refunding, Radian Insured, 5.00%, 3/01/27 ........................................ 5,000,000 5,227,150 Springfield Missouri IDAR, Bethesda Living Centers, Refunding, Series A, 5.625%, 8/15/18 ......................................................................... 3,000,000 2,993,550 5.70%, 8/15/28 .......................................................................... 5,250,000 5,074,177 Springfield Public Building Corp. Leasehold Revenue, Capital Improvement Program, AMBAC Insured, 5.00%, 3/01/24 .............................. 2,600,000 2,717,702 Springfield Branson Airport, Series A, AMBAC Insured, 5.00%, 7/01/36 .................... 5,000,000 5,207,050 Springfield Recreational, Series B, AMBAC Insured, Pre-Refunded, 6.125%, 6/01/21 ........ 3,230,000 3,422,476 Springfield Recreational, Series B, AMBAC Insured, Pre-Refunded, 6.15%, 6/01/25 ......... 3,645,000 3,864,757 Springfield Public Utility Revenue, FGIC Insured, 4.75%, 8/01/34 ........................... 5,000,000 5,088,900 Springfield School District No. R-12 GO, Missouri Direct Deposit Program, 5.85%, 3/01/20 ... 1,500,000 1,574,790 St. Charles County Public Water Supply District No. 2, COP, Missouri Project, Series A, MBIA Insured, 5.25%, 12/01/28 ............................................................ 1,000,000 1,045,880 St. Louis Airport Revenue, Airport Development Program, Series A, MBIA Insured, Pre-Refunded, 5.00%, 7/01/26 ....... 5,000,000 5,216,600 Airport Development Program, Series A, MBIA Insured, Pre-Refunded, 5.25%, 7/01/31 ....... 18,835,000 19,826,851 Capital Improvement Program, Series A, MBIA Insured, Pre-Refunded, 5.00%, 7/01/32 ....... 2,540,000 2,670,962 Lambert, St. Louis International Airport, Refunding, MBIA Insured, 5.50%, 7/01/29 ....... 8,320,000 9,514,253 St. Louis Board of Education GO, Missouri Direct Deposit Program, Series A, MBIA Insured, 5.00%, 4/01/25 .................................................................. 5,630,000 5,924,899 St. Louis County IDA, MFHR, Lucas Hunt Village Project, GNMA Secured, 5.20%, 9/20/31 ................................ 1,095,000 1,117,163 South Summit Apartments, Refunding, Series A, GNMA Secured, 6.10%, 4/20/32 .............. 1,250,000 1,281,238 St. Louis County IDA Health Facilities Revenue, Mary Queen Healthcare, GNMA Secured, 5.375%, 9/20/31 .......................................................................... 3,310,000 3,474,673 St. Louis County IDAR, Bethesda Living Centers, Series B, 5.85%, 8/15/28 ................... 1,500,000 1,476,585 St. Louis Municipal Finance Corp. Leasehold Revenue, Carnahan Courthouse, Series A, FGIC Insured, Pre-Refunded, 5.125%, 2/15/27 .............. 4,750,000 5,007,545 City Justice Center, Series A, AMBAC Insured, 6.00%, 2/15/20 ............................ 1,000,000 1,064,810 Taney County IDA Hospital Revenue, The Skaggs Community Hospital Assn., 5.30%, 5/15/18 .......................................................................... 3,000,000 3,034,890 5.40%, 5/15/28 .......................................................................... 1,500,000 1,513,335 Taney County Reorganized School District GO, No. R-V Hollister, Refunding, FSA Insured, 5.00%, 3/01/20 ........................................................................... 1,300,000 1,354,483
130 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN MISSOURI TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) MISSOURI (CONTINUED) University of Missouri Revenues, System Facilities, Pre-Refunded, 5.80%, 11/01/27 ........................................................... $ 1,000,000 $ 1,018,410 Refunding, Series B, 5.00%, 11/01/27 .................................................... 7,865,000 8,128,163 West Plains IDA Hospital Revenue, Ozarks Medical Center, Refunding, 5.50%, 11/15/12 ......................................................................... 1,000,000 1,006,200 5.60%, 11/15/17 ......................................................................... 1,700,000 1,713,430 5.65%, 11/15/22 ......................................................................... 1,500,000 1,496,880 West Plains Waterworks System Revenue, AMBAC Insured, Pre-Refunded, 5.625%, 3/01/21 .................................................................................. 1,250,000 1,308,725 --------------- 609,532,926 --------------- U.S. TERRITORIES 12.3% PUERTO RICO 11.5% Children's Trust Fund Puerto Rico Tobacco Settlement Revenue, Pre-Refunded, 6.00%, 7/01/26 .................................................................................. 2,785,000 2,959,341 Puerto Rico Commonwealth GO, Public Improvement, Series A, 5.375%, 7/01/28 ......................................................................... 1,975,000 2,055,718 5.125%, 7/01/31 ......................................................................... 5,000,000 5,120,550 Pre-Refunded, 5.375%, 7/01/28 ........................................................... 1,025,000 1,085,742 Puerto Rico Commonwealth Highway and Transportation Authority Highway Revenue, Series Y, Pre-Refunded, 5.50%, 7/01/36 ............................................................. 11,750,000 13,089,030 Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Series D, Pre-Refunded, 5.375%, 7/01/36 ................................................. 2,500,000 2,677,650 Series G, 5.00%, 7/01/42 ................................................................ 920,000 943,681 Series G, Pre-Refunded, 5.00%, 7/01/42 .................................................. 1,580,000 1,679,271 Puerto Rico Electric Power Authority Power Revenue, Series II, Pre-Refunded, 5.25%, 7/01/31 ................................................. 10,000,000 10,736,000 Series NN, Pre-Refunded, 5.125%, 7/01/29 ................................................ 3,250,000 3,472,365 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 2,529,275 Puerto Rico PBA Guaranteed Revenue, Government Facilities, Refunding, Series D, 5.375%, 7/01/33 .................................................... 2,150,000 2,247,288 Series D, Pre-Refunded, 5.375%, 7/01/33 ................................................. 5,885,000 6,289,182 Series I, 5.375%, 7/01/34 ............................................................... 10,000,000 10,599,200 Series I, 5.00%, 7/01/36 ................................................................ 14,450,000 14,865,437 --------------- 80,349,730 --------------- VIRGIN ISLANDS 0.8% Virgin Islands PFAR, senior lien, Fund Loan Notes, Refunding, Series A, 5.40%, 10/01/12 ......................................................................... 2,500,000 2,567,875 5.50%, 10/01/22 ......................................................................... 2,500,000 2,563,900 --------------- 5,131,775 --------------- TOTAL U.S. TERRITORIES ..................................................................... 85,481,505 --------------- TOTAL LONG TERM INVESTMENTS (COST $669,980,099) ............................................ 695,014,431 ---------------
Quarterly Statements of Investments | 131 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN MISSOURI TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- SHORT TERM INVESTMENTS 1.5% MUNICIPAL BONDS 1.5% MISSOURI 1.5% b Missouri State Health and Educational Facilities Authority Educational Facilities Revenue, St. Louis University, Series A, MBIA Insured, Daily VRDN and Put, 3.92%, 10/01/35 ....... $ 3,040,000 $ 3,040,000 Washington University, Series B, Daily VRDN and Put, 3.93%, 2/15/33 ..................... 3,000,000 3,000,000 b Missouri State Health and Educational Facilities Authority Health Facilities Revenue, SSM Health Care Corp., Refunding, Series C-1, FSA Insured, Daily VRDN and Put, 3.90%, 6/01/19 .................................................................................. 4,125,000 4,125,000 --------------- TOTAL SHORT TERM INVESTMENTS (COST $10,165,000) ............................................ 10,165,000 --------------- TOTAL INVESTMENTS (COST $680,145,099) 101.2% ............................................... 705,179,431 OTHER ASSETS, LESS LIABILITIES (1.2)% ...................................................... (8,160,762) --------------- NET ASSETS 100.0% .......................................................................... $ 697,018,669 ===============
See Selected Portfolio Abbreviations on page 176. 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. 132 | See Notes to Statements of Investments. | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN NEW JERSEY TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS 98.2% MUNICIPAL BONDS 98.2% DELAWARE 1.1% Delaware River and Bay Authority Revenue, MBIA Insured, 5.00%, 1/01/27 ........................................................... $ 10,000,000 $ 10,363,300 Series A, AMBAC Insured, Pre-Refunded, 5.75%, 1/01/29 .................................. 4,000,000 4,225,600 --------------- 14,588,900 --------------- NEW JERSEY 72.4% Atlantic County Improvement Authority Luxury Tax Revenue, Convention Center Project, MBIA Insured, ETM, 7.40%, 7/01/16 ....................................................... 9,500,000 11,273,935 Bergen County Improvement Authority School District Revenue GO, Wyckoff Township Board of Education Project, 5.00%, 4/01/32 .................................................... 3,400,000 3,561,092 Bergen County Utilities Authority Water PCR, System, AMBAC Insured, 5.00%, 12/15/31 ....... 3,000,000 3,155,130 Berhards Township School District GO, MBIA Insured, 5.00%, 7/15/30 ........................ 10,038,000 10,549,536 Berkeley Township Board of Education GO, FSA Insured, 4.75%, 8/01/22 ...................... 1,975,000 2,015,922 Branchburg Township Board of Education GO, FGIC Insured, Pre-Refunded, 5.00%, 7/15/27 ................................................................................ 1,300,000 1,356,797 7/15/28 ................................................................................ 1,365,000 1,424,637 7/15/29 ................................................................................ 1,440,000 1,502,914 Camden County Improvement Authority Health System Revenue, Catholic Health East, Series B, AMBAC Insured, Pre-Refunded, 5.00%, 11/15/28 .................................. 11,600,000 11,964,704 Cape May County IPC Financing Authority Revenue, Atlantic City Electric Co., Refunding, Series A, MBIA Insured, 6.80%, 3/01/21 .................................................. 5,400,000 6,808,482 Carteret Board of Education COP, MBIA Insured, Pre-Refunded, 5.75%, 1/15/30 ............... 1,155,000 1,214,714 East Orange GO, Water Utility, AMBAC Insured, Pre-Refunded, 5.70%, 6/15/23 ................................................................................ 1,200,000 1,235,772 6/15/24 ................................................................................ 1,385,000 1,426,287 6/15/25 ................................................................................ 1,465,000 1,508,672 Egg Harbor Township School District GO, FGIC Insured, Pre-Refunded, 5.125%, 7/15/24 ............................................ 4,870,000 5,147,347 MBIA Insured, Pre-Refunded, 5.00%, 4/01/29 ............................................. 3,195,000 3,418,682 MBIA Insured, Pre-Refunded, 5.00%, 4/01/30 ............................................. 3,027,000 3,238,920 Freehold Township Board of Education GO, MBIA Insured, Pre-Refunded, 5.00%, 2/15/30 ....... 1,500,000 1,559,325 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 1,453,595 Series B, 7.00%, 12/01/29 .............................................................. 1,250,000 1,322,800 Hammonton School District GO, FGIC Insured, Pre-Refunded, 5.00%, 8/01/26 ................................................................................ 1,155,000 1,215,811 8/01/27 ................................................................................ 1,215,000 1,278,970 Higher Education Student Assistance Authority Student Loan Revenue, Series A, MBIA Insured, 6.15%, 6/01/19 ............................................................ 1,215,000 1,238,583 Hoboken GO, Parking Utility, Series A, FGIC Insured, 5.00%, 1/01/23 ....................... 4,315,000 4,502,228 Hoboken Parking Authority Parking Revenue, AMBAC Insured, Pre-Refunded, 5.30%, 5/01/27 ................................................................................. 3,600,000 3,850,884 Hudson County Improvement Authority Solid Waste Systems Revenue, Koppers Site Project, Series A, 6.125%, 1/01/29 ............................................................... 6,510,000 6,518,072 Jackson Township School District GO, FGIC Insured, Pre-Refunded, 5.00%, 4/15/25 ........... 3,000,000 3,148,770 Jersey City GO, Series A, FSA Insured, Pre-Refunded, 5.625%, 3/01/20 ...................... 1,000,000 1,055,470
Quarterly Statements of Investments | 133 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN NEW JERSEY TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) NEW JERSEY (CONTINUED) Lafayette Yard Community Development Corp. Revenue, Hotel/Conference Center Project, Trenton Guaranteed, MBIA Insured, Pre-Refunded, 6.00%, 4/01/29 .......................................................................... $ 1,750,000 $ 1,866,778 5.80%, 4/01/35 .......................................................................... 2,520,000 2,674,778 Middlesex County COP, MBIA Insured, 5.00%, 8/01/31 .......................................................................... 3,250,000 3,340,545 zero cpn., 6/15/24 ...................................................................... 1,000,000 473,420 Middlesex County Improvement Authority Revenue, Administration Building Residential Project, FNMA Insured, 5.25%, 7/01/21 .......................................................................... 750,000 784,313 5.35%, 7/01/34 .......................................................................... 1,575,000 1,642,095 Middletown Township GO, Board of Education, MBIA Insured, Pre-Refunded, 5.85%, 8/01/25 .................................................................................. 5,000 5,017 Monroe Township Municipal Utilities Authority Middlesex County Revenue, FGIC Insured, Pre-Refunded, 5.00%, 2/01/26 ............................................................. 1,000,000 1,039,160 Mount Olive Township Board of Education GO, MBIA Insured, Pre-Refunded, 5.00%, 7/15/29 .................................................................................. 7,875,000 8,393,017 New Jersey EDA, PCR, Jersey Central Power and Light, 7.10%, 7/01/15 ........................ 550,000 551,298 New Jersey EDA Heating and Cooling Revenue, Trigen-Trenton Project, Refunding, Series B, 6.20%, 12/01/07 .......................................................................... 445,000 449,343 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 5,281,950 New Jersey EDA Revenue, Cigarette Tax, 5.50%, 6/15/24 ........................................................... 5,000,000 5,179,450 Hillcrest Health Services System Project, Refunding, AMBAC Insured, 5.375%, 1/01/16 ............................................................................... 2,500,000 2,569,650 Jewish Community Housing Corp. Metropolitan Project, 5.90%, 12/01/31 .................... 5,110,000 5,366,726 Motor Vehicle Surcharge Revenue, Series A, MBIA Insured, 5.00%, 7/01/23 ................. 3,100,000 3,254,163 Motor Vehicle Surcharge Revenue, Series A, MBIA Insured, 5.00%, 7/01/27 ................. 5,000,000 5,239,300 Motor Vehicle Surcharge Revenue, Series A, MBIA Insured, 5.00%, 7/01/29 ................. 12,500,000 13,082,625 Motor Vehicle Surcharge Revenue, Series A, MBIA Insured, 5.00%, 7/01/34 ................. 13,750,000 14,365,312 Municipal Rehabilitation, Series A, AMBAC Insured, 5.00%, 4/01/28 ....................... 21,740,000 22,492,639 School Facilities Construction, Series A, AMBAC Insured, Pre-Refunded, 5.00%, 6/15/21 ............................................................................... 14,000,000 14,600,600 School Facilities Construction, Series C, MBIA Insured, 4.75%, 6/15/25 .................. 16,500,000 16,728,030 School Facilities Construction, Series L, FSA Insured, 5.00%, 3/01/30 ................... 10,500,000 10,971,765 School Facilities Construction, Series O, 5.125%, 3/01/28 ............................... 5,000,000 5,278,900 School Facilities Construction, Series P, 5.00%, 9/01/30 ................................ 5,250,000 5,458,005 School Facilities Construction, Series P, MBIA Insured, 5.00%, 9/01/30 .................. 5,480,000 5,747,260 Transportation Project Sub Lease, Series A, FSA Insured, Pre-Refunded, 5.25%, 5/01/17 ............................................................................... 5,000,000 5,137,450 Transportation Project Sub Lease, Series A, FSA Insured, Pre-Refunded, 5.00%, 5/01/18 ............................................................................... 2,000,000 2,045,860 New Jersey EDA School Revenue, Blair Academy, 1995 Project, Series A, 5.85%, 9/01/16 .................................................................................. 1,640,000 1,642,919 New Jersey EDA State Lease Revenue, Liberty State Park Lease Rental, Refunding, AMBAC Insured, 5.75%, 3/15/20 ............................................................ 4,605,000 4,658,326
134 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN NEW JERSEY TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) NEW JERSEY (CONTINUED) New Jersey EDA Water Facilities Revenue, Hackensack Water Co. Project, Refunding, Series A, MBIA Insured, 5.80%, 3/01/24 ................................................... $ 1,000,000 $ 1,031,110 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 5,237,750 New Jersey Health Care Facilities Financing Authority Revenue, Atlantic City Medical Center, Refunding, 5.75%, 7/01/25 ................................. 5,000,000 5,294,400 Atlantic Health Systems, Series A, AMBAC Insured, Pre-Refunded, 5.00%, 7/01/27 .......... 7,500,000 7,656,525 a Atlanticare Regional Medical Center, Refunding, 5.00%, 7/01/37 .......................... 10,500,000 10,784,025 Burdette Tomlin Memorial Hospital, 5.50%, 7/01/29 ....................................... 5,725,000 5,880,720 Cathedral Health Services, Refunding, MBIA Insured, 5.25%, 8/01/21 ...................... 5,000,000 5,140,500 Englewood Hospital, MBIA Insured, 5.00%, 8/01/31 ........................................ 9,275,000 9,589,144 Franciscan St. Mary's Hospital, ETM, 5.875%, 7/01/12 .................................... 2,820,000 2,933,392 Hackensack University Medical Center, 6.00%, 1/01/34 .................................... 10,000,000 10,476,600 Holy Name Hospital, 5.00%, 7/01/36 ...................................................... 5,000,000 5,025,150 Holy Name Hospital, Refunding, 6.00%, 7/01/25 ........................................... 3,000,000 3,064,590 Holy Name Hospital, Refunding, AMBAC Insured, 5.25%, 7/01/20 ............................ 3,000,000 3,063,150 Hunterdon Medical Center, Series A, 5.125%, 7/01/35 ..................................... 2,000,000 2,060,640 Hunterdon Medical Center, Series B, 5.00%, 7/01/36 ...................................... 7,135,000 7,307,239 Jersey City Medical Center, AMBAC Insured, 5.00%, 8/01/31 ............................... 7,000,000 7,208,460 JFK Medical Center/Hartwyck, Refunding, MBIA Insured, 5.00%, 7/01/25 .................... 7,855,000 7,996,783 Medical Center at Princeton Obligation Group, AMBAC Insured, 5.00%, 7/01/28 ............. 6,785,000 6,907,469 Meridian Health Systems Obligation Group, FSA Insured, 5.375%, 7/01/24 .................. 6,500,000 6,756,815 Meridian Health Systems Obligation Group, FSA Insured, 5.25%, 7/01/29 ................... 20,000,000 20,684,200 Robert Wood Johnson University Hospital, 5.75%, 7/01/25 ................................. 5,000,000 5,265,200 Somerset Medical Center, 5.75%, 7/01/28 ................................................. 11,000,000 11,485,540 South Jersey Hospital, 5.00%, 7/01/36 ................................................... 8,000,000 8,075,200 South Jersey Hospital, 5.00%, 7/01/46 ................................................... 27,200,000 27,416,240 South Jersey Hospital, Pre-Refunded, 5.875%, 7/01/21 .................................... 10,000,000 10,881,400 South Jersey Hospital, Pre-Refunded, 6.00%, 7/01/32 ..................................... 18,600,000 20,345,424 Southern Ocean County Hospital, FSA Insured, 5.00%, 7/01/27 ............................. 2,000,000 2,021,000 St Barnabas Health Care System, Series A, 5.00%, 7/01/29 ................................ 12,000,000 12,081,240 St. Joseph's Hospital and Medical Center, Refunding, Connie Lee Insured, 5.75%, 7/01/16 ............................................................................... 1,000,000 1,011,420 St. Joseph's Hospital and Medical Center, Refunding, Connie Lee Insured, 6.00%, 7/01/26 ............................................................................... 1,000,000 1,011,600 St. Mary's Hospital Passaic, Series 1, 5.00%, 3/01/26 ................................... 3,355,000 3,477,827 St. Mary's Hospital Passaic, Series 1, 5.00%, 3/01/27 ................................... 3,345,000 3,464,784 St. Peter's University Hospital, Refunding, Series A, 6.875%, 7/01/30 ................... 1,500,000 1,604,640 New Jersey State Building Authority State Building Revenue, Refunding, 5.00%, 6/15/15 ...... 5,000,000 5,104,950 New Jersey State Educational Facilities Authority Revenue, Capital Improvement Funding Project, Series A, FSA Insured, Pre-Refunded, 5.00%, 9/01/20 ............................................................................... 8,000,000 8,284,560 Drew University, Series D, MBIA Insured, 5.00%, 7/01/37 ................................. 6,730,000 7,077,874 FGIC Insured, Pre-Refunded, 5.50%, 7/01/30 .............................................. 6,615,000 6,934,041 Kean University, Series B, MBIA Insured, Pre-Refunded, 5.00%, 7/01/30 ................... 5,240,000 5,639,393 Kean University, Series D, FGIC Insured, 5.00%, 7/01/32 ................................. 5,000,000 5,266,800 Kean University, Series D, FGIC Insured, 5.00%, 7/01/39 ................................. 10,000,000 10,525,200 Kean University, Series D, FGIC Insured, Pre-Refunded, 5.00%, 7/01/33 ................... 10,000,000 10,589,400
Quarterly Statements of Investments | 135 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN NEW JERSEY TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) NEW JERSEY (CONTINUED) New Jersey State Educational Facilities Authority Revenue, (continued) Montclair State University, Refunding, Series A, AMBAC Insured, 5.00%, 7/01/31 ......... $ 8,000,000 $ 8,429,040 Montclair State University, Refunding, Series A, AMBAC Insured, 5.00%, 7/01/36 ......... 10,000,000 10,505,600 Montclair State University, Series F, FGIC Insured, Pre-Refunded, 5.00%, 7/01/31 ....... 5,000,000 5,216,600 Princeton University, Refunding, Series A, 5.00%, 7/01/30 .............................. 5,000,000 5,239,900 Princeton University, Refunding, Series D, 5.00%, 7/01/29 .............................. 1,000,000 1,065,480 Ramapo College of New Jersey, Series D, AMBAC Insured, Pre-Refunded, 5.00%, 7/01/25 .............................................................................. 1,000,000 1,043,320 Ramapo College of New Jersey, Series D, AMBAC Insured, Pre-Refunded, 5.00%, 7/01/31 .............................................................................. 1,500,000 1,564,980 Ramapo College of New Jersey, Series D, MBIA Insured, Pre-Refunded, 5.00%, 7/01/36 .............................................................................. 6,745,000 7,259,104 Ramapo College of New Jersey, Series E, FGIC Insured, Pre-Refunded, 5.00%, 7/01/34 .............................................................................. 2,000,000 2,130,960 Richard Stockton College, Refunding, Series F, AMBAC Insured, 5.00%, 7/01/28 ........... 3,370,000 3,527,008 Richard Stockton College, Series F, MBIA Insured, 5.00%, 7/01/31 ....................... 5,395,000 5,651,263 Rowan University, Refunding, Series C, FGIC Insured, 5.00%, 7/01/31 .................... 1,505,000 1,564,327 Rowan University, Refunding, Series D, AMBAC Insured, 5.00%, 7/01/24 ................... 1,755,000 1,842,873 Rowan University, Series C, FGIC Insured, Pre-Refunded, 5.00%, 7/01/31 ................. 495,000 520,681 Rowan University, Series G, MBIA Insured, 5.00%, 7/01/25 ............................... 1,470,000 1,551,100 Rowan University, Series G, MBIA Insured, 5.00%, 7/01/26 ............................... 1,000,000 1,053,630 Rowan University, Series K, FGIC Insured, Pre-Refunded, 5.00%, 7/01/27 ................. 1,000,000 1,051,560 Seton Hall University Project, Series G, AMBAC Insured, 5.00%, 7/01/26 ................. 1,870,000 1,930,345 Stevens Institute of Technology, Series I, 5.00%, 7/01/18 .............................. 1,100,000 1,120,427 Stevens Institute of Technology, Series I, 5.00%, 7/01/28 .............................. 1,575,000 1,594,609 University of Medical Dentistry, Series C, AMBAC Insured, 5.125%, 12/01/29 ............. 2,700,000 2,762,262 New Jersey State Highway Authority Garden State Parkway General Revenue, ETM, 6.20%, 1/01/10 ................................................................................. 5,000,000 5,196,400 New Jersey State Housing and Mortgage Finance Agency MFHR, Series A1, FSA Insured, 6.35%, 11/01/31 ................................................ 2,000,000 2,079,540 Series B, FSA Insured, 6.25%, 11/01/26 ................................................. 970,000 1,008,131 Series D, FSA Insured, 5.50%, 5/01/22 .................................................. 825,000 846,722 Series E1, FSA Insured, 5.70%, 5/01/20 ................................................. 2,755,000 2,855,971 Series E1, FSA Insured, 5.75%, 5/01/25 ................................................. 1,295,000 1,341,270 New Jersey State Housing and Mortgage Finance Agency Revenue, Home Buyer, Series CC, MBIA Insured, 5.875%, 10/01/31 .............................................. 1,025,000 1,051,107 Series U, MBIA Insured, 5.85%, 4/01/29 ................................................. 3,165,000 3,221,179 New Jersey State Transportation Corp. COP, Federal Transportation Administration Grants, Series A, AMBAC Insured, Pre-Refunded, 6.125%, 9/15/15 .................................. 2,000,000 2,099,960 New Jersey State Transportation Trust Fund Authority Revenue, Capital Appreciation, Transportation System, Series C, FSA Insured, zero cpn., 12/15/33 ............................................................................. 10,000,000 2,961,700 Transportation System, Series B, MBIA Insured, Pre-Refunded, 5.00%, 12/15/21 ........... 10,000,000 10,477,800 Transportation System, Series D, FSA Insured, 5.00%, 6/15/20 ........................... 7,000,000 7,402,640 New Jersey State Turnpike Authority Turnpike Revenue, Growth and Income Securities, Series B, AMBAC Insured, zero cpn. to 1/01/15, 5.15% thereafter, 1/01/35 ............................................................ 7,500,000 5,340,375 Series A, AMBAC Insured, 5.00%, 1/01/30 ................................................ 13,500,000 14,043,780
136 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN NEW JERSEY TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) NEW JERSEY (CONTINUED) New Jersey State Turnpike Authority Turnpike Revenue, (continued) Series A, FGIC Insured, 5.00%, 1/01/27 ................................................. $ 6,500,000 $ 6,772,415 Series A, MBIA Insured, Pre-Refunded, 5.60%, 1/01/22 ................................... 7,500,000 7,823,850 Series A, MBIA Insured, Pre-Refunded, 5.50%, 1/01/25 ................................... 16,300,000 16,964,388 Series C, FSA Insured, 5.00%, 1/01/35 .................................................. 22,675,000 23,705,805 Newark Housing Authority Port Authority Revenue, Newark Marine Terminal, MBIA Insured, Pre-Refunded, 5.00%, 1/01/26 ......................................................................... 3,245,000 3,444,308 5.50%, 1/01/27 ......................................................................... 3,240,000 3,532,021 5.50%, 1/01/28 ......................................................................... 2,000,000 2,180,260 5.00%, 1/01/34 ......................................................................... 29,155,000 30,945,700 5.00%, 1/01/37 ......................................................................... 3,965,000 4,208,530 North Hudson Sewer Authority New Jersey Sewer Revenue, Series C, MBIA Insured, 5.00%, 8/01/22 ................................................................................ 1,000,000 1,032,080 8/01/31 ................................................................................ 1,000,000 1,029,780 Ocean County Board of Education GO, Cape May, FGIC Insured, Pre-Refunded, 5.00%, 4/01/21 ................................................................................ 2,155,000 2,242,967 4/01/22 ................................................................................ 2,142,000 2,229,436 Passaic County Improvement Authority Lease Revenue, Preakness Healthcare Center Project, AMBAC Insured, 5.00%, 5/01/35 ........................................................... 8,045,000 8,374,925 Passaic County Improvement Authority Parking Facilities Revenue, Paterson Parking Deck Project, Series A, FSA Insured, 5.00%, 4/15/35 .......................................... 1,375,000 1,432,035 Passaic Valley Sewer Commissioners GO, Sewer System, Refunding, Series E, AMBAC Insured, 5.75%, 12/01/22 .......................................................... 8,925,000 9,391,867 Rutgers State University COP, AMBAC Insured, 5.00%, 1/01/34 ............................... 1,000,000 1,038,520 South Brunswick Township Board of Education GO, SeriesAA, FGIC Insured, Pre-Refunded, 5.50%, 8/01/24 .......................................................................... 1,720,000 1,724,764 South Jersey Transportation Authority Transportation System Revenue, AMBAC Insured, 5.00%, 11/01/29 ......................................................................... 12,000,000 12,331,200 Tobacco Settlement Financing Corp. Revenue, Asset-Backed, Pre-Refunded, 6.00%, 6/01/37 ................................................................................. 13,000,000 14,232,920 Union County Utilities Authority Solid Waste Revenue, Sub Lease, Ogden Martin, Refunding, Series A, AMBAC Insured, 5.35%, 6/01/23 ................................................. 2,535,000 2,587,018 University of Medicine and Dentistry COP, AMBAC Insured, 5.00%, 4/15/32 .......................................................... 4,625,000 4,769,161 MBIA Insured, 5.00%, 6/15/29 ........................................................... 2,090,000 2,180,476 MBIA Insured, 5.00%, 6/15/36 ........................................................... 18,000,000 18,712,800 Series A, MBIA Insured, 5.00%, 9/01/22 ................................................. 1,700,000 1,755,964 University of Medicine and Dentistry Revenue, Series A, AMBAC Insured, 5.00%, 12/01/24 ............................................................................... 2,500,000 2,615,825 12/01/31 ............................................................................... 29,395,000 30,478,794 Upper Freehold Regional School District GO, MBIA Insured, Pre-Refunded, 5.00%, 2/15/35 ................................................................................. 8,730,000 9,403,519 West Orange County Board of Education COP, MBIA Insured, Pre-Refunded, 5.625%, 10/01/29 ................................................................................ 2,000,000 2,100,440 Woodbridge Township GO, FGIC Insured, 5.00%, 7/15/24 ...................................... 1,220,000 1,262,505 --------------- 926,987,057 ---------------
Quarterly Statements of Investments | 137 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN NEW JERSEY TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) NEW YORK 5.4% Port Authority of New York and New Jersey Revenue, 120th Series, MBIA Insured, 5.50%, 10/15/35 ............................................ $ 5,000,000 $ 5,074,900 121st Series, MBIA Insured, 5.375%, 10/15/35 ........................................... 3,000,000 3,045,570 Consolidated, 109th Series, FSA Insured, 5.375%, 7/15/27 ............................... 2,500,000 2,528,225 Consolidated, 125th Series, FSA Insured, 5.00%, 4/15/32 ................................ 23,950,000 25,054,334 Consolidated, 144th Series, 5.00%, 10/01/30 ............................................ 20,000,000 20,970,800 Consolidated, Refunding, 135th Series, XLCA Insured, 5.00%, 9/15/29 .................... 3,900,000 4,092,699 Port Authority of New York and New Jersey Special Obligation Revenue, John F. Kennedy International Air Terminal, MBIA Insured, 5.75%, 12/01/22 ............................... 8,000,000 8,226,720 --------------- 68,993,248 --------------- PENNSYLVANIA 1.5% Delaware River Port Authority Pennsylvania and New Jersey Revenue, FSA Insured, 5.75%, 1/01/22 ................................................................................ 8,500,000 8,878,930 1/01/26 ................................................................................ 10,000,000 10,438,300 --------------- 19,317,230 --------------- U.S. TERRITORIES 17.8% PUERTO RICO 16.8% Puerto Rico Commonwealth GO, Public Improvement, FSA Insured, Pre-Refunded, 5.125%, 7/01/30 ............................................. 13,655,000 14,336,521 Refunding, FSA Insured, 5.125%, 7/01/30 ................................................ 8,350,000 8,670,890 Series A, 5.00%, 7/01/29 ............................................................... 10,000,000 10,305,800 Series A, Pre-Refunded, 5.00%, 7/01/27 ................................................. 11,555,000 12,178,046 Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Refunding, Series N, MBIA Insured, 5.25%, 7/01/32 ...................................... 10,000,000 11,332,200 Series B, Pre-Refunded, 6.00%, 7/01/39 ................................................. 10,000,000 10,715,000 Series D, Pre-Refunded, 5.375%, 7/01/36 ................................................ 5,000,000 5,355,300 Series D, Pre-Refunded, 5.25%, 7/01/38 ................................................. 5,000,000 5,326,700 Puerto Rico Commonwealth Infrastructure Financing Authority Special Obligation, Series A, ETM, 5.50%, 10/01/32 .................................................................... 1,000,000 1,062,970 Puerto Rico Commonwealth Infrastructure Financing Authority Special Tax Revenue, 5.00%, 7/01/37 ......................................................................... 8,000,000 8,258,880 Series A, AMBAC Insured, Pre-Refunded, 5.00%, 7/01/28 .................................. 13,000,000 13,226,980 Puerto Rico Electric Power Authority Power Revenue, Series II, Pre-Refunded, 5.25%, 7/01/31 ................................................ 18,000,000 19,324,800 Series RR, FGIC Insured, Pre-Refunded, 5.00%, 7/01/35 .................................. 48,440,000 52,167,942 Series TT, 5.00%, 7/01/32 .............................................................. 10,000,000 10,401,000 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 1,022,510 Puerto Rico PBA Guaranteed Revenue, Government Facilities, Refunding, Series D, 5.375%, 7/01/33 ................................................... 6,830,000 7,139,058 Series D, Pre-Refunded, 5.375%, 7/01/33 ................................................ 18,170,000 19,417,916 Puerto Rico Public Finance Corp. Revenue, Commonwealth Appropriation, Series A, MBIA Insured, Pre-Refunded, 5.00%, 8/01/29 .............................................. 5,000,000 5,230,350 --------------- 215,472,863 ---------------
138 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN NEW JERSEY TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) U.S. TERRITORIES (CONTINUED) VIRGIN ISLANDS 1.0% Virgin Islands PFAR, Gross Receipts Taxes Loan Note, Radian Insured, 5.00%, 10/01/33 ........................ $ 5,000,000 $ 5,198,450 senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/15 ..................... 2,500,000 2,567,800 senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/18 ..................... 3,045,000 3,124,809 senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/22 ..................... 2,000,000 2,051,120 --------------- 12,942,179 --------------- TOTAL U.S. TERRITORIES .................................................................... 228,415,042 --------------- TOTAL LONG TERM INVESTMENTS (COST $1,207,710,565) ......................................... 1,258,301,477 --------------- SHORT TERM INVESTMENTS 1.0% MUNICIPAL BONDS 1.0% NEW JERSEY 0.5% b New Jersey EDA Revenue, first mortgage, Franciscan, Refunding, Weekly VRDN and Put, 3.76%, 10/01/12 ............ 155,000 155,000 School Facilities Construction, Sub Series R-3, Daily VRDN and Put, 3.86%, 9/01/31 ..... 670,000 670,000 b New Jersey State Educational Facilities Authority Revenue, Princeton University, Series B, Daily VRDN and Put, 3.90%, 7/01/21 ...................................................... 4,800,000 4,800,000 --------------- 5,625,000 --------------- NEW YORK 0.5% b Port Authority of New York and New Jersey Special Obligation Revenue, Versatile Structure, Series 2, Daily VRDN and Put, 3.88%, 5/01/19 ............................................ 6,600,000 6,600,000 --------------- TOTAL SHORT TERM INVESTMENTS (COST $12,225,000) ........................................... 12,225,000 --------------- TOTAL INVESTMENTS (COST $1,219,935,565) 99.2% ............................................. 1,270,526,477 OTHER ASSETS, LESS LIABILITIES 0.8% ....................................................... 10,022,300 --------------- NET ASSETS 100.0% ......................................................................... $ 1,280,548,777 ===============
See Selected Portfolio Abbreviations on page 176. a Security purchased on a when-issued or delayed delivery basis. b Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. Quarterly Statements of Investments | See Notes to Statements of Investments. | 139 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN NORTH CAROLINA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS 98.5% MUNICIPAL BONDS 98.5% NORTH CAROLINA 81.4% Appalachian State University Revenue, Refunding, MBIA Insured, 5.00%, 7/15/30 ................................................. $ 2,000,000 $ 2,099,120 Teachers College Utility System, Refunding, MBIA Insured, 5.00%, 5/15/24 ................ 3,000,000 3,068,250 Asheville Water System Revenue, FSA Insured, Pre-Refunded, 5.00%, 8/01/25 .................. 1,000,000 1,044,900 Broad River Water Authority Water System Revenue, MBIA Insured, Pre-Refunded, 5.375%, 6/01/26 .................................................................................. 1,000,000 1,053,040 Brunswick County Enterprise System Revenue, Series A, FSA Insured, 5.00%, 4/01/27 ................................................................................. 1,500,000 1,570,455 4/01/28 ................................................................................. 1,750,000 1,825,862 Buncombe County COP, MBIA Insured, 5.00%, 4/01/22 .......................................... 1,000,000 1,051,630 Buncombe County Metropolitan Sewer District Sewer System Revenue, FSA Insured, Pre-Refunded, 5.00%, 7/01/29 ............................................................. 5,000,000 5,172,700 a Cary Combined Enterprise System Revenue, Refunding, Series 2007, 5.00%, 12/01/33 ........... 5,000,000 5,292,950 Centennial Authority Hotel Tax Revenue, Arena Project, FSA Insured, 5.125%, 9/01/19 ........ 5,115,000 5,230,804 Charlotte Airport Revenue, Series A, MBIA Insured, 5.00%, 7/01/29 .................................................. 5,000,000 5,214,450 Series A, MBIA Insured, 5.00%, 7/01/34 .................................................. 15,130,000 15,741,403 Series B, MBIA Insured, 6.00%, 7/01/24 .................................................. 4,000,000 4,186,960 Series B, MBIA Insured, 6.00%, 7/01/28 .................................................. 6,300,000 6,590,619 Charlotte COP, Convention Facility Project, Pre-Refunded, 5.625%, 12/01/25 ............................. 7,230,000 7,715,856 Governmental Facilities Projects, Series G, 5.00%, 6/01/28 .............................. 3,000,000 3,100,230 Transit Projects, Phase II, Series E, 5.00%, 6/01/35 .................................... 11,000,000 11,358,160 Charlotte GO, Series C, 5.00%, 7/01/27 ..................................................... 2,010,000 2,098,581 Charlotte Storm Water Fee Revenue, 5.00%, 6/01/35 .......................................................................... 5,000,000 5,254,850 Refunding, 5.00%, 6/01/25 ............................................................... 1,000,000 1,040,360 Charlotte Water and Sewer GO, Pre-Refunded, 5.00%, 2/01/21 ................................. 4,000,000 4,112,320 Charlotte Water and Sewer System Revenue, 5.125%, 6/01/26 ......................................................................... 6,000,000 6,277,440 Pre-Refunded, 5.25%, 6/01/24 ............................................................ 3,000,000 3,115,080 Pre-Refunded, 5.25%, 6/01/25 ............................................................ 3,950,000 4,145,683 Charlotte-Mecklenburg Hospital Authority Health Care System Revenue, Carolinas Healthcare System, Refunding, Series A, 5.125%, 1/15/22 ......................................................................... 8,000,000 8,162,560 5.00%, 1/15/31 .......................................................................... 5,000,000 5,123,750 Chatham County COP, AMBAC Insured, 5.00%, 6/01/34 .......................................... 5,000,000 5,235,850 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 1,486,801 Cumberland County COP, Civic Center Project, Refunding, AMBAC Insured, 5.00%, 12/01/18 ................................................................................. 3,000,000 3,077,790 Cumberland County Finance Corp. Installment Payment Revenue, Detention Center and Mental Health, FSA Insured, Pre-Refunded, 5.625%, 6/01/24 ....................................... 5,000,000 5,330,950 Cumberland County Hospital Facilities Revenue, Cumberland County Hospital Systems Inc., Pre-Refunded, 5.25%, 10/01/29 ............................................................ 5,250,000 5,472,652
140 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN NORTH CAROLINA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) NORTH CAROLINA (CONTINUED) Dare County COP, AMBAC Insured, 5.125%, 6/01/21 .......................................................... $ 650,000 $ 689,052 AMBAC Insured, 5.00%, 6/01/23 ........................................................... 3,000,000 3,121,020 AMBAC Insured, 5.00%, 6/01/29 ........................................................... 5,295,000 5,523,162 FGIC Insured, 5.00%, 6/01/23 ............................................................ 2,655,000 2,786,847 Durham County Enterprise System Revenue, MBIA Insured, 5.00%, 6/01/23 ...................... 1,670,000 1,742,778 Durham County GO, Public Improvement, Pre-Refunded, 5.00%, 6/01/22 ......................... 2,000,000 2,103,480 Franklin County COP, AMBAC Insured, 5.00%, 6/01/25 ......................................... 1,250,000 1,284,013 Gastonia Combined Utilities System Revenue, FSA Insured, 5.00%, 5/01/25 ............................................................. 1,000,000 1,031,410 MBIA Insured, Pre-Refunded, 5.625%, 5/01/19 ............................................. 1,000,000 1,058,680 Greensboro Enterprise System Revenue, Series A, Pre-Refunded, 5.125%, 6/01/21 ................................................................................. 390,000 412,016 6/01/22 ................................................................................. 350,000 369,758 Greensboro HDC, Mortgage Revenue, Refunding, Series A, MBIA Insured, 6.70%, 1/01/24 ........ 1,320,000 1,320,726 Halifax County Industrial Facilities and PCFA Revenue, Champion International Corp. Project, 5.45%, 11/01/33 ......................................................................... 4,000,000 4,043,040 Refunding, 6.45%, 11/01/29 .............................................................. 3,900,000 4,078,230 Harnett County COP, FSA Insured, 5.125%, 12/01/23 ........................................................... 1,000,000 1,057,880 Series A, FSA Insured, 5.00%, 12/01/27 .................................................. 6,295,000 6,609,561 Henderson County COP, Henderson County School Project, AMBAC Insured, 5.00%, 3/01/21 .................................................................................. 1,000,000 1,042,260 High Point Combined Enterprise System Revenue, FGIC Insured, 5.00%, 11/01/31 ............... 11,000,000 11,526,130 Mecklenburg County GO, Public Improvement, Series B, 4.70%, 2/01/20 ........................ 3,000,000 3,075,420 New Hanover County COP, New Hanover County Projects, AMBAC Insured, 5.00%, 12/01/22 ................................................................................. 5,000,000 5,228,650 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 3,099,180 Meredith College, AMBAC Insured, 4.875%, 6/01/24 ........................................ 1,000,000 1,022,810 North Carolina Capital Facilities Finance Agency Revenue, Duke University Project, Refunding, Series A, 5.00%, 10/01/41 .................................................... 17,000,000 17,655,350 Refunding, Series B, 4.75%, 7/01/42 ..................................................... 10,000,000 10,134,800 Series A, 5.00%, 10/01/39 ............................................................... 5,815,000 6,070,046 Series A, Pre-Refunded, 5.25%, 7/01/42 .................................................. 10,000,000 10,667,400 North Carolina Eastern Municipal Power Agency Power System Revenue, Refunding, Series A, 6.50%, 1/01/18 ..................................................... 3,000,000 3,516,840 Refunding, Series A, 5.75%, 1/01/26 ..................................................... 10,000,000 10,406,400 Refunding, Series A, AMBAC Insured, 5.00%, 1/01/21 ...................................... 11,555,000 12,163,371 Series D, 6.75%, 1/01/26 ................................................................ 5,000,000 5,366,450 North Carolina HFA, SFR, Series AA, 6.25%, 3/01/17 ......................................... 245,000 245,713 North Carolina HFAR, MF, Mortgage Loan Resolution, Refunding, Series H, 6.05%, 7/01/28 ....................... 1,295,000 1,304,078 MF, Refunding, Series A, AMBAC Insured, 5.90%, 7/01/20 .................................. 1,890,000 1,891,493 MF, Refunding, Series J, 5.45%, 7/01/17 ................................................. 1,840,000 1,876,156 Refunding, Series F, 6.70%, 1/01/27 ..................................................... 1,240,000 1,241,364
Quarterly Statements of Investments | 141 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN NORTH CAROLINA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) NORTH CAROLINA (CONTINUED) North Carolina HFAR, (continued) SF, Refunding, Series DD, 6.20%, 9/01/27 ................................................ $ 810,000 $ 811,823 SF, Series JJ, 6.45%, 9/01/27 ........................................................... 1,350,000 1,365,755 SFR, Series RR, 5.85%, 9/01/28 .......................................................... 1,655,000 1,683,449 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 1,023,490 Novant Health Project, Refunding, Series A, MBIA Insured, 5.00%, 10/01/24 ............... 5,500,000 5,606,315 Refunding, FGIC Insured, 5.00%, 1/01/33 ................................................. 12,805,000 13,336,664 Scotland Memorial Hospital Project, Radian Insured, 5.50%, 10/01/19 ..................... 630,000 653,556 Scotland Memorial Hospital Project, Radian Insured, 5.50%, 10/01/29 ..................... 1,220,000 1,264,335 WakeMed Project, Series 2001, AMBAC Insured, 5.00%, 10/01/32 ............................ 4,205,000 4,333,379 North Carolina Medical Care Commission Health System Revenue, Catholic Health East Project, Series C, AMBAC Insured, 5.00%, 11/15/18 ................................................. 2,500,000 2,565,400 North Carolina Medical Care Commission Hospital Revenue, Annie Penn Memorial Hospital Project, ETM, 5.25%, 1/01/12 ............................... 1,655,000 1,694,190 Annie Penn Memorial Hospital Project, Pre-Refunded, 5.375%, 1/01/22 ..................... 1,920,000 2,059,757 Halifax Regional Medical Center Project, 5.00%, 8/15/24 ................................. 1,800,000 1,704,420 Mission-St. Joseph's Health System Project, MBIA Insured, Pre-Refunded, 5.125%, 10/01/28 .............................................................................. 3,230,000 3,321,151 Mission-St. Joseph's Health System Project, Refunding, MBIA Insured, 5.125%, 10/01/28 ............................................................................... 1,770,000 1,809,701 Northeast Medical Center, AMBAC Insured, 5.50%, 11/01/30 ................................ 1,580,000 1,654,102 Rex Healthcare Project, AMBAC Insured, 5.00%, 6/01/17 ................................... 2,780,000 2,838,019 Southeastern Regional Medical Center, 6.25%, 6/01/29 .................................... 4,000,000 4,183,880 Southeastern Regional Medical Center, 5.375%, 6/01/32 ................................... 3,500,000 3,629,465 Transylvania Community Hospital Inc. Project, Refunding, 5.75%, 10/01/19 ................ 1,090,000 1,106,121 Wake County Hospital System Project, MBIA Insured, 5.375%, 10/01/26 ..................... 10,825,000 11,081,552 Wilson Memorial Hospital Project, Refunding, AMBAC Insured, 5.625%, 11/01/18 ............ 5,000,000 5,034,650 North Carolina Medical Care Commission Revenue, Betsy Johnson Project, FSA Insured, 5.125%, 10/01/32 .................................... 4,500,000 4,665,510 Chatham Hospital Project, MBIA Insured, 5.25%, 2/01/31 .................................. 6,450,000 6,924,397 Chatham Hospital Project, MBIA Insured, 5.00%, 8/01/35 .................................. 5,000,000 5,209,650 Morehead Memorial Hospital, FSA Insured, 5.00%, 11/01/26 ................................ 7,110,000 7,406,416 Novant Health Obligation Group, MBIA Insured, 5.00%, 11/01/39 ........................... 9,680,000 10,070,007 Rowan Regional Medical Center, FSA Insured, 5.00%, 9/01/33 .............................. 25,970,000 27,006,982 North Carolina Municipal Power Agency No. 1 Catawba Electric Revenue, Series A, MBIA Insured, 5.25%, 1/01/19 .......................................................................... 5,000,000 5,299,000 5.00%, 1/01/20 .......................................................................... 2,000,000 2,044,440 North Carolina State COP, Western Carolina University Housing Project, AMBAC Insured, 5.00%, 6/01/33 ........................................................................... 1,500,000 1,558,935 North Carolina State GO, Public Improvement, Series A, 4.50%, 3/01/26 ...................... 8,855,000 8,930,976 Onslow County Hospital Authority FHA Insured Mortgage Revenue, Onslow Memorial Hospital Project, MBIA Insured, 5.00%, 4/01/31 ................................................................................. 6,120,000 6,426,612 10/01/34 ................................................................................ 6,000,000 6,291,240
142 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN NORTH CAROLINA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) NORTH CAROLINA (CONTINUED) Pasquotank County COP, MBIA Insured, 5.00%, 6/01/25 ........................................ $ 1,400,000 $ 1,449,210 Piedmont Triad Airport Authority Airport Revenue, Series A, FSA Insured, Pre-Refunded, 6.00%, 7/01/24 ........................................................................... 5,745,000 6,056,953 Pitt County COP, School Facilities Project, Series A, FSA Insured, Pre-Refunded, 5.25%, 4/01/25 ..................................... 1,670,000 1,749,141 Series B, AMBAC Insured, 5.00%, 4/01/29 ................................................. 2,500,000 2,608,375 Series B, FSA Insured, Pre-Refunded, 5.50%, 4/01/25 ..................................... 1,000,000 1,054,020 Raleigh Combined Enterprise System Revenue, 5.00%, 3/01/31 .......................................................................... 10,360,000 10,785,900 Series A, 5.00%, 3/01/36 ................................................................ 6,000,000 6,298,440 Raleigh COP, Downtown Improvement Projects, Series A, 5.00%, 2/01/29 ....................... 6,070,000 6,336,291 Raleigh Durham Airport Authority Airport Revenue, Series A, AMBAC Insured, 5.00%, 5/01/30 ........................................................... 14,060,000 14,713,228 FGIC Insured, 5.00%, 11/01/25 ........................................................... 6,480,000 6,692,933 FGIC Insured, 5.00%, 11/01/31 ........................................................... 8,000,000 8,241,440 Randolph County COP, FSA Insured, Pre-Refunded, 5.75%, 6/01/22 ............................. 5,500,000 5,763,230 Union County COP, AMBAC Insured, 5.00%, 6/01/30 ............................................ 5,000,000 5,228,300 University of North Carolina at Ashville Revenue, General, Refunding, Series A, AMBAC Insured, 5.00%, 6/01/27 .................................................................. 1,200,000 1,243,896 University of North Carolina at Charlotte Revenue, General, Series B, FSA Insured, 5.00%, 4/01/32 ................................................................................. 5,085,000 5,346,623 4/01/36 ................................................................................. 5,215,000 5,474,811 University of North Carolina at Wilmington COP, Student Housing Project, FGIC Insured, 5.00%, 6/01/26 ................................................................................. 1,655,000 1,735,582 6/01/27 ................................................................................. 1,740,000 1,823,398 6/01/29 ................................................................................. 1,915,000 2,003,875 6/01/37 ................................................................................. 11,350,000 11,876,753 University of North Carolina Greensboro Revenue, Housing and Dining System, Series G, MBIA Insured, Pre-Refunded, 6.00%, 4/01/26 ......... 2,040,000 2,177,251 Series A, FSA Insured, 5.00%, 4/01/26 ................................................... 4,940,000 5,130,289 University of North Carolina System Pool Revenue, AMBAC Insured, 5.00%, 4/01/29 ........................................................... 2,500,000 2,606,875 Series A, AMBAC Insured, 5.00%, 4/01/27 ................................................. 1,430,000 1,483,968 Series A, AMBAC Insured, Pre-Refunded, 5.00%, 4/01/27 ................................... 670,000 706,723 Series A, MBIA Insured, 5.00%, 10/01/33 ................................................. 3,500,000 3,686,340 University of North Carolina University Revenues, 5.00%, 12/01/28 ......................................................................... 1,000,000 1,041,560 General, Refunding, Series A, 5.00%, 12/01/34 ........................................... 12,460,000 13,065,805 Series A, 5.00%, 12/01/25 ............................................................... 4,000,000 4,141,640 Wake County Industrial Facilities and PCFA Revenue, Carolina Power and Light Co. Project, Refunding, 5.375%, 2/01/17 ............................................................... 8,000,000 8,393,440 Wilkes County COP, MBIA Insured, 5.00%, 6/01/31 ............................................................ 4,295,000 4,494,331 MBIA Insured, 5.00%, 6/01/36 ............................................................ 6,085,000 6,335,276 Public Improvements Project, FSA Insured, 5.375%, 12/01/20 .............................. 1,000,000 1,055,070
Quarterly Statements of Investments | 143 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN NORTH CAROLINA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) NORTH CAROLINA (CONTINUED) Wilmington COP, AMBAC Insured, 5.00%, 9/01/29 ........................................................... $ 1,000,000 $ 1,041,820 Refunding, Series A, AMBAC Insured, 5.00%, 6/01/32 ...................................... 5,310,000 5,540,826 Wilmington Water and Sewer System Revenue, Refunding, FSA Insured, 5.00%, 6/01/34 .......... 8,565,000 8,954,964 Winston-Salem Water and Sewer System Revenue, Pre-Refunded, 5.125%, 6/01/20 ................ 2,500,000 2,641,125 --------------- 629,592,661 --------------- U.S. TERRITORIES 17.1% PUERTO RICO 16.6% Children's Trust Fund Puerto Rico Tobacco Settlement Revenue, Asset-Backed Bonds, Refunding, 5.50%, 5/15/39 ................................................................ 7,000,000 7,338,590 Puerto Rico Commonwealth GO, Public Improvement, FSA Insured, Pre-Refunded, 5.125%, 7/01/30 .............................................. 4,805,000 5,044,818 Refunding, FSA Insured, 5.125%, 7/01/30 ................................................. 3,445,000 3,577,391 Series A, 5.375%, 7/01/28 ............................................................... 4,925,000 5,126,285 Series A, 5.125%, 7/01/31 ............................................................... 3,265,000 3,343,719 Series A, Pre-Refunded, 5.00%, 7/01/27 .................................................. 5,000,000 5,269,600 Series A, Pre-Refunded, 5.375%, 7/01/28 ................................................. 2,405,000 2,547,520 Series A, Pre-Refunded, 5.125%, 7/01/31 ................................................. 1,000,000 1,049,910 Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Refunding, Series A, MBIA Insured, 5.00%, 7/01/38 ....................................... 85,000 86,480 Refunding, Series D, FSA Insured, 5.00%, 7/01/32 ........................................ 3,060,000 3,165,050 Refunding, Series H, 5.00%, 7/01/35 ..................................................... 1,490,000 1,529,157 Series A, MBIA Insured, Pre-Refunded, 5.00%, 7/01/38 .................................... 1,915,000 1,961,132 Series D, FSA Insured, Pre-Refunded, 5.00%, 7/01/32 ..................................... 1,940,000 2,046,428 Series D, Pre-Refunded, 5.375%, 7/01/36 ................................................. 5,000,000 5,355,300 Series D, Pre-Refunded, 5.25%, 7/01/38 .................................................. 3,000,000 3,196,020 Series H, Pre-Refunded, 5.00%, 7/01/35 .................................................. 2,790,000 2,965,296 Puerto Rico Commonwealth Infrastructure Financing Authority Special Tax Revenue, Series A, AMBAC Insured, Pre-Refunded, 5.00%, 7/01/28 .............................................. 9,000,000 9,157,140 Puerto Rico Convention Center District Authority Hotel Occupancy Tax Revenue, Series A, AMBAC Insured, 5.00%, 7/01/31 ............................................................ 23,000,000 24,145,170 Puerto Rico Electric Power Authority Power Revenue, Series II, Pre-Refunded, 5.25%, 7/01/31 ................................................. 6,000,000 6,441,600 Series NN, MBIA Insured, Pre-Refunded, 5.00%, 7/01/32 ................................... 5,000,000 5,314,150 Series RR, FGIC Insured, Pre-Refunded, 5.00%, 7/01/35 ................................... 3,000,000 3,230,880 Series RR, XLCA Insured, Pre-Refunded, 5.00%, 7/01/30 ................................... 1,000,000 1,076,960 Series TT, 5.00%, 7/01/32 ............................................................... 5,100,000 5,304,510 Series TT, 5.00%, 7/01/37 ............................................................... 5,000,000 5,196,400 Puerto Rico PBA Guaranteed Revenue, Government Facilities, Refunding, Series D, 5.375%, 7/01/33 .................................................... 1,790,000 1,870,997 Series D, Pre-Refunded, 5.375%, 7/01/33 ................................................. 5,210,000 5,567,823 Series I, 5.00%, 7/01/36 ................................................................ 2,405,000 2,474,144 Puerto Rico Public Finance Corp. Revenue, Commonwealth Appropriation, Series E, Pre-Refunded, 5.70%, 8/01/25 ............................................................. 5,000,000 5,234,950 --------------- 128,617,420 ---------------
144 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN NORTH CAROLINA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) U.S. TERRITORIES (CONTINUED) VIRGIN ISLANDS 0.5% Virgin Islands PFAR, senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/18 ......................................................................... $ 2,000,000 $ 2,052,420 5.625%, 10/01/25 ........................................................................ 1,575,000 1,617,352 --------------- 3,669,772 --------------- TOTAL U.S. TERRITORIES ..................................................................... 132,287,192 --------------- TOTAL LONG TERM INVESTMENTS (COST $739,311,257) ............................................ 761,879,853 --------------- SHORT TERM INVESTMENTS 0.8% MUNICIPAL BONDS 0.8% NORTH CAROLINA 0.8% b Charlotte-Mecklenburg Hospital Authority Health Care System Revenue, Series B, Weekly VRDN and Put, 3.76%, 1/15/26 .................................................................. 2,160,000 2,160,000 b North Carolina Medical Care Commission Hospital Revenue, Lexington Memorial Hospital Project, Refunding, Daily VRDN and Put, 3.87%, 4/01/10 ................................... 200,000 200,000 b North Carolina State GO, Refunding, Series B, Weekly VRDN and Put, 3.70%, 6/01/19 ................................ 2,400,000 2,400,000 a Series G, Weekly VRDN and Put, 3.70%, 5/01/21 ........................................... 515,000 515,000 b Wake County GO, Public Improvement, Series C, Weekly VRDN and Put, 3.76%, 4/01/19 .......... 1,000,000 1,000,000 --------------- TOTAL SHORT TERM INVESTMENTS (COST $6,275,000) ............................................. 6,275,000 --------------- TOTAL INVESTMENTS (COST $745,586,257) 99.3% ................................................ 768,154,853 OTHER ASSETS, LESS LIABILITIES 0.7% ........................................................ 5,717,582 --------------- NET ASSETS 100.0% .......................................................................... $ 773,872,435 ===============
See Selected Portfolio Abbreviations on page 176. a Security purchased on a when-issued or delayed delivery basis. b Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. Quarterly Statements of Investments | See Notes to statements of Investments. | 145 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN OHIO INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS 99.5% MUNICIPAL BONDS 99.5% OHIO 97.7% Akron Bath Copley Joint Township Hospital District Revenue, Hospital Improvement Children's Hospital Center, FSA Insured, 5.00%, 11/15/22 ............................................ $ 5,000,000 $ 5,175,500 Akron GO, Improvement, FGIC Insured, 5.00%, 12/01/20 ................................................................................ 2,150,000 2,255,522 12/01/21 ................................................................................ 2,255,000 2,361,752 12/01/22 ................................................................................ 1,185,000 1,236,986 Akron Income Tax Revenue, Community Learning Centers, Series A, FGIC Insured, 5.00%, 12/01/22 ................................................................................ 2,460,000 2,567,920 12/01/24 ................................................................................ 3,200,000 3,332,992 12/01/33 ................................................................................ 8,005,000 8,319,356 Anthony Wayne Local School District GO, Refunding, FSA Insured, 5.00%, 12/01/24 ................................................. 3,200,000 3,314,784 School Facilities Construction and Improvement, FSA Insured, Pre-Refunded, 5.65%, 12/01/21 .............................................................................. 1,845,000 1,971,715 School Facilities Construction and Improvement, FSA Insured, Pre-Refunded, 5.70%, 12/01/25 .............................................................................. 2,335,000 2,499,151 School Facilities Construction and Improvement, Refunding, FSA Insured, 5.65%, 12/01/21 .............................................................................. 645,000 684,951 School Facilities Construction and Improvement, Refunding, FSA Insured, 5.125%, 12/01/30 .............................................................................. 2,535,000 2,627,908 Athens City School District GO, School Facilities Construction and Improvement, FSA Insured, Pre-Refunded, 6.00%, 12/01/24 ............................................... 2,345,000 2,532,647 Aurora City School District COP, MBIA Insured, Pre-Refunded, 6.10%, 12/01/19 ......................................................................... 1,825,000 1,943,990 6.15%, 12/01/24 ......................................................................... 1,670,000 1,780,855 Austintown Local School District GO, School Improvement, FSA Insured, 5.125%, 12/01/30 ................................................................................. 7,715,000 8,159,307 Avon Lake City School District GO, FGIC Insured, Pre-Refunded, 5.50%, 12/01/26 ............. 4,000,000 4,240,720 Avon Lake Water System Revenue, Series A, AMBAC Insured, Pre-Refunded, 5.75%, 10/01/26 ................................................................................. 2,020,000 2,141,725 Avon Local School District GO, School Improvement, MBIA Insured, Pre-Refunded, 5.25%, 12/01/23 ................................................................................ 1,000,000 1,077,920 12/01/29 ................................................................................ 2,295,000 2,473,826 Bluffton Exempted Village School District GO, Improvement, AMBAC Insured, 5.50%, 12/01/28 ................................................................................. 1,190,000 1,396,370 Bowling Green MFHR, Village Apartments, Refunding, Series A, GNMA Secured, 5.40%, 9/20/36 .................................................................................. 2,940,000 3,035,550 Brookville Local School District GO, FSA Insured, Pre-Refunded, 5.25%, 12/01/22 ......................................................................... 1,075,000 1,158,764 5.00%, 12/01/31 ......................................................................... 3,000,000 3,191,100 Buckeye Local School District GO, Construction and Improvement Bonds, FGIC Insured, 5.50%, 12/01/25 .......................................................................... 750,000 786,045 Butler County GO, Judgment Bonds, FSA Insured, Pre-Refunded, 4.75%, 12/01/26 ............... 4,000,000 4,209,040 Butler County Transportation Improvement District Revenue, Highway, XLCA Insured, 4.75%, 12/01/28 ......................................................................... 6,845,000 6,981,079 5.00%, 12/01/31 ......................................................................... 12,540,000 13,177,408
146 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN OHIO INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) OHIO (CONTINUED) Canal Winchester Local School District GO, Capital Appreciation, MBIA Insured, zero cpn., 12/01/32 ................................................................................ $ 1,455,000 $ 445,259 12/01/33 ................................................................................ 2,000,000 584,240 Central Local School District GO, Classroom Facilities, FSA Insured, 5.75%, 12/01/22 ....... 1,555,000 1,655,811 Chillicothe City School District GO, Capital Appreciation, Refunding, FGIC Insured, zero cpn., 12/01/22 ...................... 1,905,000 951,852 Capital Appreciation, Refunding, FGIC Insured, zero cpn., 12/01/23 ...................... 1,905,000 905,770 Capital Appreciation, Refunding, FGIC Insured, zero cpn., 12/01/24 ...................... 1,905,000 861,403 School Improvement, FGIC Insured, Pre-Refunded, 5.00%, 12/01/32 ......................... 7,395,000 7,913,907 Cincinnati City School District GO, Classroom Facilities Construction and Improvement, FSA Insured, Pre-Refunded, 5.00%, 12/01/25 .............................................................................. 10,660,000 11,339,042 Classroom Facilities Construction and Improvement, FSA Insured, Pre-Refunded, 5.00%, 12/01/27 .............................................................................. 2,500,000 2,659,250 FSA Insured, 5.00%, 12/01/22 ............................................................ 9,510,000 9,893,633 Cincinnati Technical College Revenue, AMBAC Insured, 5.25%, 10/01/23 ......................................................................... 2,510,000 2,664,867 5.00%, 10/01/28 ......................................................................... 2,715,000 2,823,654 Circleville GO, Capital Facilities Improvement, AMBAC Insured, 5.625%, 12/01/20 ............ 2,035,000 2,179,892 Cleveland Municipal School District GO, FSA Insured, 5.00%, 12/01/27 ....................... 4,000,000 4,182,200 Cleveland State University General Receipt Revenue, FGIC Insured, 5.25%, 6/01/24 .......................................................................... 1,000,000 1,066,760 5.00%, 6/01/34 .......................................................................... 5,000,000 5,212,400 Cleveland Waterworks Revenue, Refunding and Improvement, Series I, FSA Insured, 5.00%, 1/01/28 ........................ 6,715,000 6,815,792 Series I, FSA Insured, Pre-Refunded, 5.00%, 1/01/28 ..................................... 4,785,000 4,867,733 Series K, FGIC Insured, Pre-Refunded, 5.00%, 1/01/22 .................................... 2,075,000 2,174,102 Series K, FGIC Insured, Pre-Refunded, 5.00%, 1/01/23 .................................... 4,285,000 4,489,652 Series K, FGIC Insured, Pre-Refunded, 5.00%, 1/01/25 .................................... 8,150,000 8,539,244 Cleveland-Cuyahoga County Port Authority Revenue, Student Housing, Euclid Avenue Housing Corp., Fenn Project, AMBAC Insured, 5.00%, 8/01/25 ................................................................................. 2,440,000 2,546,067 8/01/28 ................................................................................. 2,145,000 2,242,748 Clyde-Green Springs Exempted Village School District GO, School Facilities Construction, Refunding and Improvement, MBIA Insured, 5.125%, 12/01/32 ................................ 1,000,000 1,049,740 Columbus City School District GO, Linden Elementary Construction, FSA Insured, 5.00%, 12/01/28 ................................................................................. 900,000 926,577 Columbus Municipal Airport Authority Revenue, Airport Improvement, Port Columbus International, Series B, AMBAC Insured, Pre-Refunded, 5.00%, 1/01/18 ..................... 3,565,000 3,626,639 Columbus Tax Increment Financing Revenue, Easton Project, AMBAC Insured, Pre-Refunded, 5.30%, 12/01/19 .......................................................................... 1,500,000 1,558,965 Crawford County GO, Refunding, AMBAC Insured, 5.25%, 12/01/31 .............................. 1,330,000 1,397,152 Cuyahoga Community College District General Receipts Revenue, Series A, AMBAC Insured, 5.00%, 12/01/22 ................................................................................ 1,000,000 1,042,720 12/01/32 ................................................................................ 3,000,000 3,117,810
Quarterly Statements of Investments | 147 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN OHIO INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) OHIO (CONTINUED) Cuyahoga County Hospital Revenue, University Hospitals Health System Inc., AMBAC Insured, 5.40%, 1/15/19 .......................................................................... $ 1,500,000 $ 1,564,530 5.50%, 1/15/30 .......................................................................... 1,760,000 1,839,253 Cuyahoga County MFHR, Rockefeller Park Project, Series A, GNMA Secured, 5.75%, 1/20/29 .................................................................................. 1,000,000 1,042,190 Cuyahoga County Utility System Revenue, AMBAC Insured, 5.125%, 2/15/28 .......................................................... 1,000,000 1,027,380 Medical Center Co. Project, Refunding, Series B, MBIA Insured, 6.10%, 8/15/15 ........... 2,945,000 2,958,547 Darke County GO, Real Estate Acquisition and Improvement, FGIC Insured, 5.125%, 12/01/27 ................................................................................. 1,020,000 1,066,838 Dayton City School District GO, School Facilities Construction and Improvement, Series A, FGIC Insured, 4.75%, 12/01/25 ......................................................................... 9,400,000 9,556,698 5.00%, 12/01/29 ......................................................................... 8,275,000 8,613,365 Deerefield Township Tax Increment Revenue, Refunding, Series B, MBIA Insured, 5.00%, 12/01/25 ................................................................................. 1,000,000 1,035,870 Dublin City School District GO, Capital Appreciation Bonds, FGIC Insured, zero cpn., 12/01/16 ................................................................................. 4,635,000 3,098,358 Eastlake GO, Capital Facilities, MBIA Insured, 5.00%, 12/01/27 ............................. 1,950,000 2,021,897 Eaton City School District GO, FGIC Insured, Pre-Refunded, 5.00%, 12/01/25 ................. 1,250,000 1,330,650 Edgewood City School District GO, School Improvement, Refunding, FSA Insured, 5.00%, 12/01/24 ................................................................................. 2,220,000 2,327,936 Fairborn Ohio City School District GO, School Improvement, FSA Insured, 5.00%, 12/01/23 ................................................................................ 1,205,000 1,266,419 12/01/24 ................................................................................ 1,265,000 1,329,477 12/01/25 ................................................................................ 1,330,000 1,397,790 Fairfield County GO, FGIC Insured, 5.00%, 12/01/20 ......................................... 1,600,000 1,673,184 Fairless Ohio Local School District GO, Various Purpose School Facilities Construction, FSA Insured, 5.00%, 12/01/28 ............................................................. 2,085,000 2,174,884 Field Local School District GO, School Facilities Construction and Improvement, AMBAC Insured, 5.00%, 12/01/27 ................................................................. 1,290,000 1,346,954 Finneytown Local School District GO, FGIC Insured, 5.80%, 12/01/24 ......................... 1,980,000 2,039,044 Franklin County Convention Facilities Authority Revenue, Tax and Lease Revenue Anticipation Bonds, Refunding, AMBAC Insured, 5.00%, 12/01/23 ................................................................................ 6,910,000 7,271,047 12/01/24 ................................................................................ 7,255,000 7,628,778 Franklin County Hospital Revenue, Children's Hospital Project, AMBAC Insured, Pre-Refunded, 5.50%, 5/01/21 ................ 3,365,000 3,588,369 Children's Hospital Project, AMBAC Insured, Pre-Refunded, 5.50%, 5/01/28 ................ 4,265,000 4,548,111 OhioHealth Corp., Refunding, Series C, MBIA Insured, 5.00%, 5/15/33 ..................... 5,250,000 5,413,065 Franklin County Ohio Hospital Revenue, The Children's Hospital, FGIC Insured, 5.00%, 5/01/35 .................................................................................. 10,000,000 10,369,500 Franklin GO, MBIA Insured, 5.25%, 12/01/27 ................................................. 1,500,000 1,578,735 Garfield Heights GO, Various Purpose, Refunding and Improvement, FGIC Insured, 5.00%, 12/01/27 ................................................................................. 2,655,000 2,783,290 Georgetown Exempted Village School District GO, Classroom Facilities, FSA Insured, 5.125%, 12/01/31 ......................................................................... 1,000,000 1,056,930
148 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN OHIO INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) OHIO (CONTINUED) Graham Local School District GO, School Improvement, Refunding, MBIA Insured, 5.00%, 12/01/33 ................................................................................. $ 6,055,000 $ 6,353,754 Grand Valley Local School District GO, Classroom Facilities Improvement, FGIC Insured, 5.00%, 12/01/24 .......................................................................... 1,300,000 1,346,631 Greater Cleveland Regional Transit Authority GO, Capital Improvement, Series A, MBIA Insured, Pre-Refunded, 5.125%, 12/01/21 .................................................. 1,750,000 1,843,380 Green Community Learning Centers Income Tax Revenue, MBIA Insured, 5.00%, 12/01/27 ................................................................................ 1,205,000 1,259,888 12/01/28 ................................................................................ 1,265,000 1,320,293 12/01/32 ................................................................................ 2,675,000 2,787,002 Greene County GO, AMBAC Insured, Pre-Refunded, 5.00%, 12/01/22 ................................................................................ 1,475,000 1,558,205 12/01/28 ................................................................................ 2,620,000 2,767,794 Greene County Sewer System Revenue, Governmental Enterprise, AMBAC Insured, Pre-Refunded, 5.625%, 12/01/25 ........................................... 1,890,000 2,018,274 MBIA Insured, Pre-Refunded, 5.25%, 12/01/25 ............................................. 5,000,000 5,208,900 Greene County Water System Revenue, Governmental Enterprise, MBIA Insured, Pre-Refunded, 5.25%, 12/01/21 .................... 5,400,000 5,761,314 Series A, FGIC Insured, Pre-Refunded, 6.125%, 12/01/21 .................................. 2,100,000 2,166,507 Guernsey County GO, Refunding, FGIC Insured, 5.00%, 12/01/23 ............................... 2,690,000 2,801,796 Hamilton County Convention Facilities Authority Revenue, FGIC Insured, 5.00%, 12/01/24 ........................................................... 2,795,000 2,917,169 FGIC Insured, 5.00%, 12/01/28 ........................................................... 5,400,000 5,622,750 second lien, FGIC Insured, 5.00%, 12/01/33 .............................................. 7,235,000 7,515,790 Hamilton County Hospital Facilities Revenue, Cincinnati Children's Hospital, Series J, FGIC Insured, 5.25%, 5/15/34 ............................................................ 5,000,000 5,273,200 Hamilton County Sales Tax Revenue, Refunding, Sub Series B, AMBAC Insured, 5.25%, 12/01/32 ................................. 3,965,000 4,110,515 Refunding, Sub Series B, AMBAC Insured, 5.60%, 12/01/32 ................................. 245,000 257,076 Sub Series B, AMBAC Insured, Pre-Refunded, 5.25%, 12/01/32 .............................. 15,755,000 16,494,855 Sub Series B, AMBAC Insured, Pre-Refunded, 5.60%, 12/01/32 .............................. 955,000 1,010,667 Hamilton County Sewer System Revenue, Improvement, Series A, MBIA Insured, Pre-Refunded, 5.25%, 12/01/21 ...................... 1,000,000 1,058,470 Metropolitan Sewer District Improvement, Series B, MBIA Insured, 5.00%, 12/01/30 ........ 4,000,000 4,203,160 Hamilton GO, One Renaissance Center, Series A, AMBAC Insured, 5.25%, 11/01/18 ................................................................................ 1,010,000 1,070,236 11/01/19 ................................................................................ 1,015,000 1,075,535 11/01/20 ................................................................................ 1,120,000 1,184,938 11/01/21 ................................................................................ 1,180,000 1,246,458 Hamilton Wastewater System Revenue, Series A, FSA Insured, Pre-Refunded, 5.20%, 10/15/23 ................................................................................. 7,275,000 7,491,358 Heath City School District GO, School Improvement, Series A, FGIC Insured, Pre-Refunded, 5.60%, 12/01/21 ......................................................................... 1,000,000 1,058,290 5.50%, 12/01/27 ......................................................................... 1,170,000 1,234,409 Highland Local School District GO, School Improvement, FSA Insured, Pre-Refunded, 5.00%, 12/01/23 ................................................................................ 3,680,000 3,857,560 12/01/26 ................................................................................ 3,675,000 3,852,319
Quarterly Statements of Investments | 149 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN OHIO INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) OHIO (CONTINUED) Hilliard School District GO, Capital Appreciation, School Construction, Refunding, MBIA Insured, zero cpn., 12/01/19 .............................................................................. $ 2,190,000 $ 1,251,651 Capital Appreciation, School Construction, Refunding, MBIA Insured, zero cpn., 12/01/20 .............................................................................. 4,525,000 2,459,881 School Improvement, FGIC Insured, Pre-Refunded, 5.75%, 12/01/28 ......................... 4,000,000 4,287,680 School Improvement, Series A, FGIC Insured, 5.25%, 12/01/28 ............................. 3,010,000 3,165,557 Huber Heights Water System Revenue, Refunding and Improvement, MBIA Insured, 5.00%, 12/01/27 ................................................................................ 3,205,000 3,377,108 12/01/30 ................................................................................ 2,250,000 2,364,278 Hudson City School District COP, MBIA Insured, 5.00%, 6/01/34 .............................. 6,720,000 6,997,200 Independence Local School District GO, FGIC Insured, 5.25%, 12/01/21 ....................... 1,390,000 1,477,918 Ironton City School District GO, MBIA Insured, 5.00%, 12/01/34 ............................. 5,130,000 5,403,275 Jackson Center Local School District Shelby County GO, Facilities Construction and Improvement, MBIA Insured, 5.00%, 12/01/28 ............................................... 1,175,000 1,216,572 Jackson City School District GO, School Improvement, MBIA Insured, Pre-Refunded, 5.25%, 12/01/27 .......................................................................... 3,000,000 3,157,320 Jackson Local School District GO, Stark and Summit Counties Local School District, FSA Insured, Pre-Refunded, 5.50%, 12/01/20 ......................................................................... 4,000,000 4,220,200 5.625%, 12/01/25 ........................................................................ 3,500,000 3,706,850 Jefferson Local School District Madison County School Construction GO, FGIC Insured, 5.00%, 12/01/25 ......................................................................... 1,200,000 1,256,424 Jonathan Alder Local School District GO, School Facilities Construction and Improvement, MBIA Insured, 4.75%, 12/01/22 ........................................................... 1,105,000 1,129,619 MBIA Insured, Pre-Refunded, 5.00%, 12/01/27 ............................................. 3,895,000 4,114,717 MBIA Insured, Pre-Refunded, 5.00%, 12/01/30 ............................................. 3,320,000 3,507,281 Refunding, MBIA Insured, 5.00%, 12/01/27 ................................................ 2,300,000 2,383,651 Kenston Local School District GO, School Improvement, MBIA Insured, 5.00%, 12/01/24 ................................................................................ 2,380,000 2,472,225 12/01/25 ................................................................................ 2,500,000 2,596,875 Kettering City School District GO, School Improvement, FSA Insured, Pre-Refunded, 5.00%, 12/01/28 ................................................................................ 2,970,000 3,166,287 12/01/31 ................................................................................ 2,595,000 2,766,504 Keystone Local School District Lorain County GO, School Improvement, FSA Insured, 5.00%, 12/01/30 ................................................................................. 6,170,000 6,435,865 Lake County Hospital Facilities Revenue, Lake Hospital System Inc., AMBAC Insured, 5.00%, 8/15/23 ........................................................................... 1,500,000 1,526,085 Lake Ohio Local School District GO, MBIA Insured, Pre-Refunded, 5.30%, 12/01/21 ......................................................................... 1,575,000 1,683,612 5.375%, 12/01/25 ........................................................................ 1,900,000 2,036,838 Lakewood City School District GO, School Improvement, FSA Insured, Pre-Refunded, 5.125%, 12/01/31 ............................................. 21,900,000 23,613,018 Refunding, FSA Insured, 4.50%, 12/01/31 ................................................. 12,220,000 12,059,185 Lakota Local School District GO, FSA Insured, 5.00%, 12/01/29 .............................. 8,365,000 8,795,965 Lebanon City School District GO, FSA Insured, Pre-Refunded, 5.00%, 12/01/29 ................ 6,250,000 6,551,562
150 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN OHIO INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) OHIO (CONTINUED) Licking County Joint Vocational School District GO, School Facilities Construction and Improvement, MBIA Insured, 5.00%, 12/01/21 ......................................................................... $ 2,200,000 $ 2,289,848 4.75%, 12/01/23 ......................................................................... 2,230,000 2,277,499 Licking Heights Local School District GO, School Facilities Construction and Improvement, Refunding, Series A, MBIA Insured, 5.00%, 12/01/24 ...................................... 2,085,000 2,181,348 Refunding, Series A, MBIA Insured, 5.00%, 12/01/25 ...................................... 2,215,000 2,317,355 Refunding, Series A, MBIA Insured, 5.00%, 12/01/26 ...................................... 2,345,000 2,451,768 Series A, FGIC Insured, Pre-Refunded, 5.625%, 12/01/28 .................................. 4,000,000 4,236,400 Little Miami Local School District GO, Refunding, FSA Insured, 4.50%, 12/01/34 ................................................. 20,255,000 19,909,652 School Improvement, FSA Insured, Pre-Refunded, 5.00%, 12/01/34 .......................... 4,000,000 4,323,080 Logan Hocking Local School District GO, Construction and Improvement, MBIA Insured, Pre-Refunded, 5.00%, 12/01/22 ................................................................................ 1,200,000 1,257,900 12/01/29 ................................................................................ 1,000,000 1,048,250 London City School District GO, School Facilities Construction and Improvement, FGIC Insured, Pre-Refunded, 5.00%, 12/01/22 ................................................................................ 700,000 733,775 12/01/29 ................................................................................ 1,500,000 1,572,375 Lorain County GO, Sewer System Improvement, MBIA Insured, 5.00%, 12/01/19 .................. 1,640,000 1,711,881 Lorain County Health Facilities Revenue, Catholic Healthcare Partners, Series A, AMBAC Insured, 5.50%, 9/01/29 ............................................................ 6,250,000 6,544,937 Lorain County Hospital Revenue, Catholic Healthcare Partners, Refunding, Series B, MBIA Insured, 5.50%, 9/01/27 ............................................................. 5,000,000 5,116,500 Lorain GO, Urban Renewal, MBIA Insured, 5.70%, 12/01/28 .................................... 1,050,000 1,114,607 Louisville City School District GO, FGIC Insured, 5.00%, 12/01/24 .......................... 3,500,000 3,604,790 Loveland City School District GO, Series A, MBIA Insured, Pre-Refunded, 5.00%, 12/01/24 ................................................................................. 4,000,000 4,157,120 Lucas County GO, 8.00%, 12/01/08 ................................................................................ 110,000 116,675 12/01/09 ................................................................................ 120,000 130,877 12/01/10 ................................................................................ 220,000 247,020 Lucas County Hospital Revenue, Promedica Healthcare Obligation Group, MBIA Insured, ETM, 5.75%, 11/15/14 ...................................................... 4,460,000 4,546,613 Refunding, AMBAC Insured, 5.375%, 11/15/29 .............................................. 750,000 775,965 Refunding, MBIA Insured, 5.75%, 11/15/14 ................................................ 300,000 305,691 Mad River Local School District GO, Classroom Facilities, FGIC Insured, Pre-Refunded, 5.125%, 12/01/24 ......................................................................... 4,180,000 4,441,417 Madison Local School District Butler County GO, MBIA Insured, Pre-Refunded, 5.75%, 12/01/26 ............................................. 1,000,000 1,056,950 School Improvement, FGIC Insured, Pre-Refunded, 5.60%, 12/01/26 ......................... 1,120,000 1,195,107 Mahoning County Hospital Facilities Revenue, Western Reserve Care, MBIA Insured, ETM, 5.50%, 10/15/25 .......................................................................... 4,750,000 5,397,472 Mahoning County Sewer System Revenue, AMBAC Insured, 5.375%, 12/01/18 ...................... 1,905,000 2,008,003
Quarterly Statements of Investments | 151 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN OHIO INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) OHIO (CONTINUED) Marion County City School District GO, School Facilities Construction and Improvement Project, FSA Insured, 5.55%, 12/01/20 ........................................................................ $ 1,000,000 $ 1,059,380 5.625%, 12/01/22 ....................................................................... 1,100,000 1,166,880 Marion County GO, AMBAC Insured, Pre-Refunded, 5.05%, 12/01/31 ............................ 1,500,000 1,588,095 Martins Ferry City School District GO, School Facilities Construction and Improvement, FSA Insured, 5.00%, 12/01/32 ............................................................ 3,610,000 3,779,309 Marysville Exempted Village School District COP, School Facilities Project, MBIA Insured, Pre-Refunded, 5.25%, 12/01/28 ............................................................................... 2,120,000 2,310,270 12/01/30 ............................................................................... 2,650,000 2,887,838 Marysville Exempted Village School District GO, Capital Appreciation, Refunding, MBIA Insured, zero cpn., 12/01/20 ..................... 1,000,000 550,840 Capital Appreciation, Refunding, MBIA Insured, zero cpn., 12/01/21 ..................... 1,000,000 524,780 FSA Insured, Pre-Refunded, 5.30%, 12/01/21 ............................................. 2,000,000 2,114,700 FSA Insured, Pre-Refunded, 5.35%, 12/01/25 ............................................. 2,010,000 2,128,530 FSA Insured, Pre-Refunded, 5.375%, 12/01/29 ............................................ 2,465,000 2,612,358 Refunding, MBIA Insured, 5.00%, 12/01/29 ............................................... 1,000,000 1,035,380 School Improvement, AMBAC Insured, Pre-Refunded, 6.00%, 12/01/29 ....................... 2,890,000 3,121,258 Marysville Wastewater Treatment System Revenue, first mortgage, MBIA Insured, Pre-Refunded, 5.00%, 12/01/35 ............................ 4,780,000 5,146,148 Refunding, XLCA Insured, 4.75%, 12/01/46 ............................................... 10,000,000 10,060,700 a XLCA Insured, 4.25%, 12/01/27 .......................................................... 1,170,000 1,123,539 a XLCA Insured, 5.00%, 12/01/37 .......................................................... 7,545,000 7,909,122 a XLCA Insured, 4.75%, 12/01/47 .......................................................... 5,500,000 5,513,475 Mason City School District GO, School Improvement, FSA Insured, 5.00%, 12/01/31 ........................................................... 5,000,000 5,330,450 MBIA Insured, Pre-Refunded, 5.00%, 12/01/20 ............................................ 5,495,000 5,760,134 Maumee City School District GO, School Facilities Construction and Improvement, FSA Insured, 5.00%, 12/01/27 ............................................................ 3,610,000 3,764,219 Medina City School District GO, Refunding, MBIA Insured, 5.00%, 12/01/27 .................. 2,015,000 2,110,894 Medina GO, 5.00%, 12/01/22 ................................................................ 1,100,000 1,154,274 Miami East Local School District GO, School Improvement, FSA Insured, 4.50%, 12/01/29 ................................................................................ 1,670,000 1,642,144 Miami University General Receipts Revenue, Refunding, AMBAC Insured, 5.00%, 12/01/22 ................................................................................ 1,675,000 1,748,482 Middletown City School District GO, FGIC Insured, 5.00%, 12/01/31 ......................... 14,975,000 15,928,907 Milford Exempted Village School District GO, School Improvement, FSA Insured, Pre-Refunded, 5.00%, 12/01/22 ........................................................................ 2,000,000 2,096,500 5.125%, 12/01/30 ....................................................................... 7,325,000 7,715,862 Minerva Local School District GO, Classroom Facilities, MBIA Insured, Pre-Refunded, 5.30%, 12/01/29 ................................................................................ 1,300,000 1,392,456 Minster School District School Facilities and Construction GO, FSA Insured, Pre-Refunded, 5.70%, 12/01/23 ........................................................................ 3,190,000 3,414,257 5.75%, 12/01/27 ........................................................................ 3,260,000 3,494,459 Monroe Local School District GO, AMBAC Insured, Pre-Refunded, 5.00%, 12/01/23 ............. 1,000,000 1,056,410
152 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN OHIO INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) OHIO (CONTINUED) Morley Library District GO, Lake County District Library, Library Improvement, AMBAC Insured, 4.75%, 12/01/21 .......................................................... $ 1,000,000 $ 1,024,250 New Albany Community Authority Community Facilities Revenue, Refunding, Series B, AMBAC Insured, 5.125%, 10/01/21 ....................................................................... 3,000,000 3,134,460 5.20%, 10/01/24 ........................................................................ 5,000,000 5,247,050 New Lexington HDC Mortgage Revenue, Lincoln Park, Refunding, Series A, MBIA Insured, 5.85%, 1/01/21 .......................................................................... 830,000 833,718 Newark City School District GO, School Improvement, Series A, FGIC Insured, 5.00%, 12/01/33 ................................................................................ 5,535,000 5,808,097 Nordonia Hills Local School District GO, School Improvement, AMBAC Insured, Pre-Refunded, 5.45%, 12/01/25 ......................................................................... 3,035,000 3,223,777 Oak Hills Local School District GO, MBIA Insured, Pre-Refunded, 5.45%, 12/01/21 ........... 5,000,000 5,093,050 Ohio Capital Corp. HMR, Refunding, Series G, MBIA Insured, 6.35%, 7/01/22 ................. 560,000 566,222 Ohio Center Local Government Capital Asset Financing Program Fractionalized Interests GO, FSA Insured, 4.875%, 12/01/18 ....................................................................... 1,255,000 1,312,103 5.25%, 12/01/23 ........................................................................ 1,410,000 1,501,565 Ohio HFA, MFHR, Wind River Apartment Project, Series A, GNMA Secured, 5.65%, 5/01/32 ............. 2,035,000 2,076,066 RMR, Series C, GNMA Secured, 5.75%, 9/01/30 ............................................ 405,000 410,731 Ohio State Air Quality Development Authority Revenue, Cincinnati Gas and Electric, Refunding, Series B, MBIA Insured, 5.45%, 1/01/24 ......... 3,500,000 3,502,485 JMG Funding LP Project, AMBAC Insured, 5.625%, 10/01/22 ................................ 6,875,000 7,022,537 Ohio Power Co., Refunding, Series C, AMBAC Insured, 5.15%, 5/01/26 ..................... 9,075,000 9,299,697 Pollution Control, Dayton Power, Refunding, Series B, FGIC Insured, 4.80%, 1/01/34 ..... 28,270,000 28,703,944 Ohio State Building Authority Revenue, State Facilities, Administration Building Fund Project, Refunding, Series A, FSA Insured, 5.00%, 4/01/22 .............................................................................. 3,100,000 3,204,315 Adult Correction, Series A, FSA Insured, 5.00%, 4/01/24 ................................ 5,390,000 5,652,655 Ohio State Department of Transportation COP, Panhandle Rail Line Project, FSA Insured, 6.50%, 4/15/12 .......................................................................... 700,000 701,652 Ohio State GO, Common Schools, Series B, 4.625%, 9/15/22 .................................. 5,000,000 5,086,500 Ohio State Higher Educational Facility Commission Revenue, FGIC Insured, 5.00%, 5/01/23 ........................................................... 8,460,000 8,787,994 Higher Educational Facility, Oberlin College, AMBAC Insured, Pre-Refunded, 5.00%, 10/01/26 ............................................................................. 8,000,000 8,298,800 Higher Educational Facility, Xavier University Project, CIFG Insured, 5.00%, 5/01/23 ... 3,385,000 3,545,889 Higher Educational Facility, Xavier University Project, CIFG Insured, 5.00%, 5/01/24 ... 2,000,000 2,092,040 Hospital, University Hospitals, AMBAC Insured, 4.75%, 1/15/46 .......................... 15,000,000 15,091,350 University of Dayton Project, XLCA Insured, 5.00%, 12/01/34 ............................ 8,500,000 8,844,335 Ohio State Higher Educational Facility Revenue, Case Western Reserve University Project, Refunding, MBIA Insured, 5.00%, 12/01/44 ...... 5,000,000 5,203,100 Case Western Reserve University Project, Series A, AMBAC Insured, 5.00%, 12/01/34 ...... 4,935,000 5,125,935 Otterbein College Project, CIFG Insured, 5.00%, 12/01/25 ............................... 2,205,000 2,312,207 Otterbein College Project, CIFG Insured, 5.00%, 12/01/35 ............................... 3,225,000 3,370,125 Ohio State Turnpike Commission Turnpike Revenue, AMBAC Insured, 5.25%, 2/15/31 ............ 16,425,000 17,002,831
Quarterly Statements of Investments | 153 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN OHIO INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) OHIO (CONTINUED) Ohio State University General Receipts Athens Revenue, FSA Insured, Pre-Refunded, 5.00%, 12/01/24 ............................................. $ 3,025,000 $ 3,116,234 MBIA Insured, 5.00%, 12/01/24 .......................................................... 2,155,000 2,250,510 Ohio State University General Receipts Revenue, Series A, 5.125%, 12/01/31 ............................................................. 2,500,000 2,611,050 State University Ohio, Series B, MBIA Insured, 5.00%, 6/01/33 .......................... 5,255,000 5,453,008 Ohio State Water Development Authority Pollution Control Facilities Revenue, Water Control Loan Fund, Water Quality Series, MBIA Insured, Pre-Refunded, 5.125%, 6/01/19 ............ 5,000,000 5,085,250 Ohio State Water Development Authority Revenue, Drinking Water Fund, Leverage, Pre-Refunded, 5.00%, 6/01/23 ............................ 2,255,000 2,382,205 Pure Water, Series I, AMBAC Insured, ETM, 7.00%, 12/01/09 .............................. 1,215,000 1,257,561 Olentangy Local School District GO, BIG Insured, 7.75%, 12/01/08 ........................................................... 375,000 396,915 BIG Insured, 7.75%, 12/01/09 ........................................................... 375,000 409,673 BIG Insured, 7.75%, 12/01/10 ........................................................... 375,000 421,796 FSA Insured, 5.00%, 12/01/25 ........................................................... 45,000 46,544 FSA Insured, 5.00%, 12/01/30 ........................................................... 7,000,000 7,361,760 FSA Insured, Pre-Refunded, 5.00%, 12/01/25 ............................................. 1,130,000 1,188,466 FSA Insured, Pre-Refunded, 5.00%, 12/01/25 ............................................. 660,000 692,010 FSA Insured, Pre-Refunded, 5.00%, 12/01/30 ............................................. 3,910,000 4,099,635 Refunding, FSA Insured, 5.00%, 12/01/30 ................................................ 90,000 92,842 School Facilities Construction and Improvement, FSA Insured, Pre-Refunded, 5.625%, 12/01/27 ............................................................................. 4,500,000 4,765,950 School Facilities Construction and Improvement, Series A, FGIC Insured, Pre-Refunded, 5.25%, 12/01/32 ...................................................................... 11,200,000 12,110,000 Ottawa and Glandorf Local School District GO, School Facilities Construction and Improvement, MBIA Insured, Pre-Refunded, 5.25%, 12/01/23 ................................ 2,175,000 2,324,357 Perrysburg Exempted Village School District GO, Refunding, FSA Insured, Series B, 5.00%, 12/01/25 ...................................... 2,235,000 2,299,770 Series B, FSA Insured, Pre-Refunded, 5.00%, 12/01/25 ................................... 2,765,000 2,873,609 Pickerington Local School District GO, AMBAC Insured, Pre-Refunded, 5.00%, 12/01/25 ........................................... 7,000,000 7,274,960 School Facilities Construction and Improvement, FGIC Insured, Pre-Refunded, 5.00%, 12/01/28 ............................................................................. 3,000,000 3,144,750 Plain Local School District GO, FGIC Insured, 6.00%, 12/01/25 ........................................................................ 800,000 856,928 Pre-Refunded, 6.00%, 12/01/25 .......................................................... 3,700,000 3,995,815 Plainesville City School District GO, School Improvement, FGIC Insured, 5.00%, 12/01/28 ................................................................................ 2,515,000 2,631,621 Princeton City School District GO, MBIA Insured, Pre-Refunded, 5.00%, 12/01/25 ............................................................................... 1,700,000 1,808,290 12/01/26 ............................................................................... 2,725,000 2,898,582 12/01/30 ............................................................................... 2,260,000 2,403,962 Ravenna City School District GO, School Improvement, FSA Insured, 5.00%, 1/15/31 .......... 1,710,000 1,795,432 Ridgewood Local School District GO, School Facilities Improvement, FSA Insured, Pre-Refunded, 6.00%, 12/01/24 ........................................................... 1,730,000 1,868,435
154 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN OHIO INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) OHIO (CONTINUED) Rittman Exempted Village School District GO, School Improvement, FSA Insured, 5.125%, 12/01/31 ................................................................................ $ 1,000,000 $ 1,039,870 Riverside Local School District GO, School Facilities Construction and Improvement, MBIA Insured, Pre-Refunded, 5.75%, 12/01/22 ............................................. 1,000,000 1,071,920 Rural Lorain County Water Authority Water Resource Revenue, AMBAC Insured, Pre-Refunded, 5.875%, 10/01/24 .......................................................... 3,100,000 3,275,584 Shaker Heights GO, Urban Renewal, Refunding, AMBAC Insured, 5.00%, 12/01/21 ........................................................................ 1,225,000 1,282,992 5.25%, 12/01/26 ........................................................................ 725,000 767,420 a Shawnee State University Revenue, MBIA Insured, 5.00%, 6/01/28 ................................................................................ 5,780,000 6,100,906 6/01/34 ................................................................................ 5,470,000 5,755,534 Sidney City School District GO, School Improvement, Refunding, FGIC Insured, 5.125%, 12/01/28 ......................................................... 1,425,000 1,485,463 Series B, FGIC Insured, 5.25%, 12/01/23 ................................................ 1,780,000 1,875,728 Series B, FGIC Insured, 5.25%, 12/01/28 ................................................ 1,000,000 1,051,680 South-Western City School District of Ohio Franklin and Pickway Counties GO, FGIC Insured, ETM, 7.875%, 12/01/07 ................................................................... 600,000 612,198 Springboro Sewer System Revenue, Mortgage, MBIA Insured, 5.00%, 6/01/25 ................................................................................ 1,000,000 1,044,320 6/01/27 ................................................................................ 1,095,000 1,144,877 St. Henry Local Consolidated School District GO, MBIA Insured, Pre-Refunded, 5.75%, 12/01/22 ................................................................................ 1,515,000 1,623,959 Steubenville City School District GO, School Facilities and Implementation, MBIA Insured, 5.60%, 12/01/22 ......................................................................... 1,500,000 1,591,500 Streetsboro City School District GO, School Improvement, MBIA Insured, Pre-Refunded, 5.00%, 12/01/25 ......................................................................... 2,500,000 2,620,625 Strongsville City School District COP, CIFG Insured, 5.00%, 12/01/34 ...................... 2,355,000 2,455,747 Struthers City School District GO, Refunding, AMBAC Insured, 5.50%, 12/01/22 .............. 1,950,000 2,062,652 Summit County GO, Sanitary Sewer System Improvement, FGIC Insured, Pre-Refunded, 5.25%, 12/01/21 ......................................................................... 4,505,000 4,802,600 Swanton Local School District GO, School Improvement, FGIC Insured, Pre-Refunded, 5.25%, 12/01/25 ......................................................................... 1,895,000 2,021,794 Sycamore Community City School District COP, Blue Ash Elementary School Project, AMBAC Insured, 5.125%, 12/01/25 ......................................................... 1,000,000 1,039,970 Sylvania City School District GO, Refunding, FGIC Insured, 5.00%, 12/01/22 ............................................... 1,550,000 1,608,683 Various Purpose, FGIC Insured, Pre-Refunded, 5.30%, 12/01/20 ........................... 2,225,000 2,378,436 Toledo City School District GO, School Facilities Improvement, FSA Insured, 5.00%, 12/01/23 ........................................................... 1,500,000 1,559,760 Series B, FGIC Insured, 5.00%, 12/01/27 ................................................ 1,925,000 2,007,236 Toledo Sewer System Revenue, AMBAC Insured, 5.00%, 11/15/22 ............................................................................... 1,000,000 1,043,590 11/15/23 ............................................................................... 1,000,000 1,041,300 Toledo Special Obligation, Industrial Development, Vehicle Storage Project, AMBAC Insured, 5.25%, 12/01/26 ......................................................................... 1,500,000 1,613,700
Quarterly Statements of Investments | 155 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN OHIO INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) OHIO (CONTINUED) Toledo Waterworks Revenue, MBIA Insured, 5.00%, 11/15/30 .................................. $ 6,425,000 $ 6,726,589 Trenton Water System Revenue, Improvement, FSA Insured, 5.125%, 12/01/34 .................. 2,750,000 2,901,140 Tri-Valley Local School District GO, FGIC Insured, Pre-Refunded, 5.25%, 12/01/29 .......... 8,530,000 9,067,305 Trotwood-Madison City School District GO, School Improvement, FGIC Insured, Pre-Refunded, 5.375%, 12/01/22 ........................................... 1,685,000 1,811,038 Refunding, FSA Insured, 4.50%, 12/01/30 ................................................ 5,420,000 5,319,730 Trumbull County GO, Refunding, MBIA Insured, 5.20%, 12/01/20 .............................. 1,475,000 1,567,999 Twinsburg GO, Golf Course, Refunding, FGIC Insured, 5.00%, 12/01/21 .................................. 1,000,000 1,034,070 Park Land and Conservation, FGIC Insured, 5.00%, 12/01/21 .............................. 1,000,000 1,034,070 Union County GO, MBIA Insured, Pre-Refunded, 5.00%, 12/01/33 .............................. 2,895,000 3,079,411 University of Akron General Receipts Revenue, FGIC Insured, 4.75%, 1/01/25 ......................................................................... 1,080,000 1,102,572 5.00%, 1/01/28 ......................................................................... 1,475,000 1,536,095 5.00%, 1/01/35 ......................................................................... 5,250,000 5,461,365 Pre-Refunded, 5.70%, 1/01/24 ........................................................... 7,050,000 7,439,089 Pre-Refunded, 5.75%, 1/01/29 ........................................................... 1,500,000 1,584,600 University of Cincinnati COP, Jefferson Avenue Residence Hall, MBIA Insured, 5.125%, 6/01/28 ................................................................................. 7,400,000 7,607,866 University of Cincinnati General Receipts Revenue, AMBAC Insured, 5.00%, 6/01/31 .......................................................... 1,350,000 1,397,763 Series A, AMBAC Insured, 5.00%, 6/01/23 ................................................ 1,845,000 1,926,770 Series A, AMBAC Insured, 5.00%, 6/01/24 ................................................ 1,940,000 2,025,981 Series A, AMBAC Insured, 5.00%, 6/01/25 ................................................ 2,005,000 2,093,862 Series AD, MBIA Insured, Pre-Refunded, 5.125%, 6/01/20 ................................. 1,500,000 1,500,000 University of Toledo General Receipts Bonds Revenue, Series A, AMBAC Insured, 4.50%, 6/01/30 ................................................................................. 5,000,000 4,908,600 Upper Scioto Valley Local School District GO, School Facilities Construction and Improvement, FGIC Insured, 5.25%, 12/01/25 .............................................. 1,160,000 1,214,300 Van Wert City School District GO, School Improvement, FGIC Insured, 5.00%, 12/01/27 ........................................................................ 4,805,000 5,075,329 Pre-Refunded, 5.00%, 12/01/30 .......................................................... 2,500,000 2,641,025 Wadsworth City School District GO, FGIC Insured, Pre-Refunded, 5.75%, 12/01/22 ............ 1,200,000 1,276,248 Warren City School District GO, School Improvement, FGIC Insured, 5.00%, 12/01/28 ......... 3,000,000 3,131,130 Warrensville Heights City School District GO, School Improvement, FGIC Insured, Pre-Refunded, 5.625%, 12/01/20 ....................................................................... 3,500,000 3,737,545 5.75%, 12/01/24 ........................................................................ 2,750,000 2,947,780 Waterville GO, Refunding, MBIA Insured, 5.05%, 12/01/26 ................................... 1,085,000 1,126,013 Wausen Exempted Village School District GO, School Improvement, MBIA Insured, Pre-Refunded, 5.50%, 12/01/17 ........................................................... 1,800,000 1,818,000 West Chester Township GO, AMBAC Insured, 5.00%, 12/01/25 .................................. 1,500,000 1,544,910 West Muskingum Local School District School Facilities GO, FGIC Insured, 5.00%, 12/01/24 ................................................................................ 2,750,000 2,864,290 Westfall Local School District GO, School Facilities Construction Improvement, FGIC Insured, Pre-Refunded, 6.00%, 12/01/22 .................................................. 2,850,000 3,025,560
156 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN OHIO INSURED TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) OHIO (CONTINUED) Wheelersburg Local School District GO, School Improvement, FSA Insured, 5.00%, 12/01/32 ................................................................................ $ 1,400,000 $ 1,465,660 Wilmington Water Revenue, first mortgage, System, AMBAC Insured, 5.25%, 6/15/29 ........... 3,320,000 3,393,903 Woodmore Local School District GO, Refunding, AMBAC Insured, 5.65%, 12/01/08 .............. 500,000 504,990 Zanesville City School District GO, School Improvement, MBIA Insured, 4.75%, 12/01/22 ........................................................................ 5,500,000 5,660,545 4.75%, 12/01/26 ........................................................................ 3,250,000 3,334,402 5.05%, 12/01/29 ........................................................................ 3,500,000 3,660,055 --------------- 1,161,066,518 --------------- U.S. TERRITORIES 1.8% PUERTO RICO 1.8% Puerto Rico Commonwealth GO, Public Improvement, Series A, FGIC Insured, Pre-Refunded, 5.00%, 7/01/32 .......................................................................... 10,000,000 10,539,200 Puerto Rico Port Authority Revenue, Series D, FGIC Insured, 6.00%, 7/01/21 ................ 11,000,000 11,009,790 --------------- TOTAL U.S. TERRITORIES .................................................................... 21,548,990 --------------- TOTAL LONG TERM INVESTMENTS (COST $1,139,350,667) ......................................... 1,182,615,508 --------------- SHORT TERM INVESTMENTS 0.8% MUNICIPAL BONDS 0.8% OHIO 0.8% b Cuyahoga County Hospital Revenue, University Hospitals of Cleveland, Daily VRDN and Put, 3.74%, 1/01/16 .......................................................................... 1,800,000 1,800,000 b Ohio State Air Quality Development Authority Revenue, Pollution Control, Ohio Edison Co., Series C, Daily VRDN and Put, 3.93%, 6/01/23 ............................................ 1,300,000 1,300,000 b Ohio State GO, Refunding and Improvement, Infrastructure, Series D, Weekly VRDN and Put, 3.72%, 2/01/19 .......................................................................... 5,950,000 5,950,000 --------------- TOTAL SHORT TERM INVESTMENTS (COST $9,050,000) ............................................ 9,050,000 --------------- TOTAL INVESTMENTS (COST $1,148,400,667) 100.3% ............................................ 1,191,665,508 OTHER ASSETS, LESS LIABILITIES (0.3)% ..................................................... (3,582,737) --------------- NET ASSETS 100.0% ......................................................................... $ 1,188,082,771 ===============
See Selected Portfolio Abbreviations on page 176. a Security purchased on a when-issued or delayed delivery basis. b Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. Quarterly Statements of Investments | See Notes to Statements of Investments. | 157 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN OREGON TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS 98.3% MUNICIPAL BONDS 98.3% OREGON 83.3% Bend Sewer Revenue, AMBAC Insured, Pre-Refunded, 5.375%, 10/01/20 ......................... $ 1,550,000 $ 1,623,951 Benton and Linn County School District No. 509J GO, Corvallis, FSA Insured, Pre-Refunded, 5.00%, 6/01/22 ............................................................ 5,000,000 5,288,450 Benton County Hospital Facilities Authority Revenue, Samaritan Health Services Project, Refunding, 5.20%, 10/01/17 ........................................................................ 4,000,000 4,084,920 5.125%, 10/01/28 ....................................................................... 4,500,000 4,575,510 Clackamas County Hospital Facility Authority Revenue, Gross Willamette Falls Project, Refunding, 5.375%, 4/01/22 ............................. 2,125,000 2,178,677 Gross Willamette Falls Project, Refunding, 5.125%, 4/01/26 ............................. 1,000,000 992,180 Kaiser Permanente, Series A, ETM, 5.375%, 4/01/14 ...................................... 2,500,000 2,595,925 Willamette Falls Hospital Project, 6.00%, 4/01/19 ...................................... 1,000,000 1,028,030 Willamette View Inc. Project, Refunding, 6.10%, 11/01/12 ............................... 500,000 506,050 Willamette View Inc. Project, Refunding, 6.30%, 11/01/21 ............................... 1,500,000 1,520,880 Clackamas County School District No. 7J Lake Oswego GO, MBIA Insured, Pre-Refunded, 5.00%, 6/01/26 ............................................. 5,000,000 5,210,700 Refunding, FSA Insured, 5.25%, 6/01/25 ................................................. 3,075,000 3,430,101 Clackamas County School District No. 12 North Clackamas GO, Series A, FSA Insured, 4.75%, 6/15/31 .......................................................................... 11,000,000 11,318,340 Clackamas County School District No. 86 GO, Canby, 5.25%, 6/15/20 ......................... 3,000,000 3,118,920 Clackamas County School District No. 108 GO, FSA Insured, Pre-Refunded, 5.00%, 6/15/25 .... 5,000,000 5,212,600 Clackamas Education Service District GO, AMBAC Insured, 4.125%, 6/01/36 ................... 2,315,000 2,222,261 Coos County School District No. 13 GO, FSA Insured, 5.00%, 6/15/22 ......................................................................... 55,000 57,050 Pre-Refunded, 5.00%, 6/15/22 ........................................................... 2,465,000 2,589,975 Curry County School District No. 17-C Brookings Harbor GO, Pre-Refunded, 5.375%, 12/15/20 ........................................................................ 2,750,000 2,888,930 Deschutes and Jefferson Counties School District No. 2J Redmond GO, Series A, FGIC Insured, 5.00%, 6/15/21 ................................................................. 1,000,000 1,050,720 Deschutes County Administrative School District No. 1 GO, Series A, FSA Insured, Pre-Refunded, 5.125%, 6/15/21 .................................................. 3,500,000 3,664,990 Emerald Peoples Utility District Revenue, Refunding, Series A, FSA Insured, 5.25%, 11/01/21 ......................................................................... 1,000,000 1,066,490 Gresham Stormwater Revenue, FGIC Insured, Pre-Refunded, 5.30%, 5/01/21 .................... 1,190,000 1,251,975 High Desert Education Service District GO, AMBAC Insured, 4.50%, 6/01/30 .................. 1,010,000 1,014,707 Hillsboro GO, AMBAC Insured, 5.00%, 6/01/29 ............................................... 5,360,000 5,607,471 Hillsboro Hospital Facility Authority Revenue, Hospital Tuality Healthcare Project, Radian Insured, 5.375%, 10/01/26 ............................................................................... 2,000,000 2,089,460 10/01/31 ............................................................................... 2,000,000 2,091,880 Jackson County School District No. 4 GO, FSA Insured, 5.00%, 6/15/20 ......................................................................... 1,450,000 1,499,068 Pre-Refunded, 5.00%, 6/15/20 ........................................................... 550,000 573,386 Jackson County School District No. 6 Central Point GO, Refunding, FSA Insured, 4.75%, 6/15/20 .......................................................................... 2,155,000 2,227,774
158 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN OREGON TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) OREGON (CONTINUED) Jackson County School District No. 9 Eagle Point GO, Pre-Refunded, 5.00%, 6/15/20 ................................................................................ $ 1,680,000 $ 1,751,434 6/15/21 ................................................................................ 1,500,000 1,563,780 Klamath Falls Intercommunity Hospital Authority Revenue, Merle West Medical Center Project, Pre-Refunded, 6.25%, 9/01/31 ........................................................... 3,290,000 3,671,508 Refunding, 6.25%, 9/01/31 .............................................................. 1,960,000 2,106,314 Refunding, Assured Guaranty, 5.00%, 9/01/36 ............................................ 5,000,000 5,217,700 Lane and Douglas Counties School District No. 45J3 GO, South Lane District, Refunding, FSA Insured, 4.75%, 6/15/25 .................................................. 3,510,000 3,590,239 Lane County School District No. 4J Eugene GO, FSA Insured, 4.75%, 7/01/22 ................. 5,150,000 5,266,235 Lane County School District No. 19 Springfield GO, FSA Insured, zero cpn., 6/15/27 ................................................................................ 5,580,000 2,141,269 6/15/28 ................................................................................ 2,000,000 730,140 6/15/29 ................................................................................ 1,925,000 668,437 Lane County School District No. 52 Bethel GO, Refunding, FSA Insured, 5.00%, 6/15/20 ...... 5,700,000 5,938,773 Linn County Community School District No. 9 GO, Lebanon, FGIC Insured, Pre-Refunded, 5.55%, 6/15/21 .................................... 1,155,000 1,255,832 Lebanon, FGIC Insured, Pre-Refunded, 5.60%, 6/15/30 .................................... 9,495,000 10,349,170 MBIA Insured, Pre-Refunded, 5.375%, 6/15/30 ............................................ 5,000,000 5,218,800 Linn County School District No. 55 GO, Sweet Home, FSA Insured, Pre-Refunded, 5.00%, 6/15/29 .......................................................................... 1,000,000 1,042,520 Marion County Housing Authority Revenue, Elliott Residence Project, GNMA Secured, 7.50%, 10/20/25 ......................................................................... 1,105,000 1,155,278 Medford Hospital Facilities Authority Revenue, Asante Health System, Refunding, Series A, MBIA Insured, 5.00%, 8/15/18 ...................................... 2,570,000 2,625,255 Refunding, Series A, MBIA Insured, 5.00%, 8/15/24 ...................................... 1,715,000 1,746,607 Series A, MBIA Insured, Pre-Refunded, 5.00%, 8/15/24 ................................... 3,585,000 3,673,514 Multnomah County Educational Facilities Revenue, University of Portland Project, 6.00%, 4/01/25 .......................................................................... 2,000,000 2,089,320 Multnomah County GO, Refunding, AMBAC Insured, 4.50%, 8/01/19 ............................. 1,500,000 1,529,355 Multnomah County School District No. 7 Reynolds GO, Series 2005, MBIA Insured, 5.00%, 6/01/35 .......................................................................... 3,220,000 3,287,105 Multnomah County School District No. 40 GO, FSA Insured, Pre-Refunded, 5.00%, 12/01/20 .... 3,490,000 3,622,166 Multnomah-Clackamas Counties Centennial School District No. 28-302 GO, FGIC Insured, Pre-Refunded, 5.00%, 6/15/21 ................................................... 5,000,000 5,212,600 Multnomah-Clackamas Counties Centennial School District No. 28-JT GO, Capital Appreciation, AMBAC Insured, zero cpn., 6/01/16 ......................................... 2,260,000 1,540,416 Northern Wasco County Peoples Utilities District Hydroelectric Revenue, McNary Dam Fishway Project, 5.20%, 12/01/24 ........................................................ 5,000,000 5,006,000 Oak Lodge Water District GO, AMBAC Insured, 7.40%, 12/01/08 ........................................................................ 215,000 218,954 7.50%, 12/01/09 ........................................................................ 215,000 219,036 Oregon Coast Community College District GO, MBIA Insured, 5.00%, 6/15/23 .................. 3,745,000 3,921,015 Oregon Health and Science University Revenue, Capital Appreciation, Refunding, Series A, MBIA Insured, zero cpn., 7/01/21 ............ 11,480,000 6,154,198 Series A, MBIA Insured, 5.00%, 7/01/32 ................................................. 24,750,000 25,599,667
Quarterly Statements of Investments | 159 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN OREGON TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) OREGON (CONTINUED) Oregon State Department of Administrative Services COP, FSA Insured, 4.625%, 5/01/30 ........................................................... $ 7,795,000 $ 7,884,253 Refunding, Series A, AMBAC Insured, 5.00%, 5/01/24 ..................................... 10,000,000 10,224,500 Refunding, Series B, AMBAC Insured, 5.00%, 5/01/26 ..................................... 7,500,000 7,773,300 Refunding, Series B, FSA Insured, 5.00%, 5/01/21 ....................................... 1,930,000 2,021,656 Series A, AMBAC Insured, Pre-Refunded, 6.00%, 5/01/26 .................................. 2,000,000 2,134,960 Series A, FSA Insured, 5.00%, 5/01/23 .................................................. 2,695,000 2,816,518 Series B, FGIC Insured, 5.00%, 11/01/30 ................................................ 19,100,000 20,020,238 Oregon State Department of Administrative Services Lottery Revenue, Oregon Administration, Lottery, Series A, FSA Insured, 5.00%, 4/01/25 ................................................................................ 5,000,000 5,285,900 4/01/27 ................................................................................ 4,000,000 4,222,160 Oregon State Department of Transportation Highway User Tax Revenue, Refunding, Series A, 5.00%, 11/15/22 ................................................... 1,200,000 1,260,804 Refunding, Series A, 5.00%, 11/15/23 ................................................... 1,260,000 1,322,194 Refunding, Series A, 5.00%, 11/15/25 ................................................... 1,295,000 1,356,396 Refunding, Series A, 5.00%, 11/15/29 ................................................... 3,330,000 3,479,217 a senior lien, Series A, 4.50%, 11/15/32 ................................................. 20,000,000 19,701,400 Series A, 5.00%, 11/15/28 .............................................................. 5,000,000 5,227,300 Series A, 5.00%, 11/15/31 .............................................................. 5,540,000 5,833,897 Series A, Pre-Refunded, 5.125%, 11/15/23 ............................................... 5,000,000 5,255,150 Series A, Pre-Refunded, 5.125%, 11/15/26 ............................................... 14,200,000 14,896,368 b Oregon State EDR, Georgia-Pacific Corp. Project, Series CLVII, 6.35%, 8/01/25 ............. 7,910,000 7,931,041 Oregon State Facilities Authority Revenue, Senior College in Student Housing Project, Series A, XLCA Insured, 5.00%, 7/01/35 ...... 3,660,000 3,807,718 Willamette University Projects, Refunding, Series A, FGIC Insured, 5.00%, 10/01/35 ..... 5,210,000 5,466,280 Oregon State GO, Board of Higher Education, Baccalaureate, Series A, Pre-Refunded, 5.00%, 8/01/27 ....... 6,000,000 6,145,320 Board of Higher Education, Series A, Pre-Refunded, 5.65%, 8/01/27 ...................... 4,440,000 4,497,409 Board of Higher Education, Series C, Pre-Refunded, 5.65%, 8/01/27 ...................... 1,460,000 1,478,878 Elderly and Disabled Housing, Series A, 6.00%, 8/01/15 ................................. 910,000 911,756 Elderly and Disabled Housing, Series A, 6.00%, 8/01/21 ................................. 455,000 455,901 Elderly and Disabled Housing, Series A, 5.375%, 8/01/28 ................................ 1,435,000 1,451,517 Elderly and Disabled Housing, Series A, 4.70%, 8/01/42 ................................. 3,205,000 3,124,587 Elderly and Disabled Housing, Series B, 6.10%, 8/01/17 ................................. 1,410,000 1,413,497 Elderly and Disabled Housing, Series B, 6.25%, 8/01/23 ................................. 2,015,000 2,019,634 Elderly and Disabled Housing, Series C, 6.50%, 8/01/22 ................................. 335,000 335,757 State Board of Higher Education, Refunding, Series A, 5.00%, 8/01/30 ................... 1,705,000 1,791,068 State Board of Higher Education, Refunding, Series E, 5.00%, 8/01/29 ................... 7,745,000 8,085,160 State Board of Higher Education, Series A, 5.00%, 8/01/31 .............................. 2,695,000 2,838,482 State Board of Higher Education, Series A, 5.00%, 8/01/36 .............................. 2,715,000 2,859,547 State Board of Higher Education, Series A, Pre-Refunded, 5.60%, 8/01/25 ................ 8,000,000 8,373,760 State Board of Higher Education, Series A, Pre-Refunded, 5.50%, 8/01/29 ................ 2,000,000 2,089,340 State Board of Higher Education, Series A, Pre-Refunded, 5.00%, 8/01/31 ................ 2,000,000 2,087,440 State Board of Higher Education, Series A, Pre-Refunded, 5.00%, 8/01/35 ................ 6,000,000 6,437,100 Veteran's Welfare, Series 77, 5.30%, 10/01/29 .......................................... 1,835,000 1,864,140 Veteran's Welfare, Series A, 5.70%, 10/01/32 ........................................... 2,480,000 2,500,584
160 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN OREGON TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) OREGON (CONTINUED) Oregon State Health Housing Educational and Cultural Facilities Authority Revenue, Peacehealth, AMBAC Insured, 5.00%, 11/15/26 ............................................ $ 5,500,000 $ 5,695,800 Reed College Project, Series A, 5.75%, 7/01/32 ......................................... 10,735,000 11,354,946 Oregon State Housing and Community Services Department MFHR, Series B, 6.00%,7/01/31 ...... 5,000,000 5,119,750 Oregon State Housing and Community Services Department Mortgage Revenue, SFM Program, Series A, 6.35%, 7/01/14 ............................................................... 520,000 529,937 Series A, 6.40%, 7/01/18 ............................................................... 265,000 265,143 Series A, 6.45%, 7/01/26 ............................................................... 660,000 660,370 Series C, 6.20%, 7/01/15 ............................................................... 550,000 550,688 Series C, 6.40%, 7/01/26 ............................................................... 310,000 310,174 Series D, 6.80%, 7/01/27 ............................................................... 480,000 480,710 Series H, FHA Insured, 5.75%, 7/01/30 .................................................. 1,710,000 1,741,344 Polk Marion and Benton Counties School District No. 13J GO, FSA Insured, Pre-Refunded, 5.80%, 6/15/20 ............................................................ 1,985,000 2,095,763 Port Astoria PCR, James River Project, Refunding, 6.55%, 2/01/15 .......................... 945,000 946,625 Port of Portland International Airport Revenue, Portland International Airport, Refunding, Series D, FGIC Insured, 5.00%, 7/01/23 ...................................... 3,000,000 3,069,990 Series 7B, MBIA Insured, Pre-Refunded, 7.10%, 7/01/21 .................................. 2,800,000 3,146,864 Series 12C, FGIC Insured, 5.00%, 7/01/18 ............................................... 1,500,000 1,535,535 Series A, AMBAC Insured, 5.50%, 7/01/24 ................................................ 22,000,000 22,834,240 Port St. Helens PCR, Portland General Electric Co. Project, Series A, 5.25%, 8/01/14 ...... 3,600,000 3,651,768 Portland Community College District GO, Series B, Pre-Refunded, 5.00%, 6/01/20 ................................................................................ 7,185,000 7,482,387 6/01/21 ................................................................................ 6,290,000 6,550,343 Portland GO, Central City Streetcar Project, Series A, 4.75%, 4/01/21 ............................... 3,600,000 3,634,200 Limited Tax, Series A, 5.00%, 4/01/18 .................................................. 1,000,000 1,009,000 Limited Tax, Series A, 5.00%, 6/01/24 .................................................. 10,000,000 10,361,200 Limited Tax, Series A, MBIA Insured, 5.125%, 6/01/30 ................................... 6,315,000 6,595,639 Limited Tax, Series B, zero cpn., 6/01/21 .............................................. 1,000,000 535,120 Portland Housing Authority MFR, Berry Ridge Project, 6.30%, 5/01/29 .................................................... 1,500,000 1,512,720 Housing, Lovejoy Station Apartments Project, MBIA Insured, 6.00%, 7/01/33 .............. 2,000,000 2,071,400 Portland MFR, Civic Stadium Housing Project, Series A, 6.00%, 3/01/17 ................................ 1,000,000 1,004,150 Housing Garden Park Estates Project, Series A, GNMA Secured, 5.875%, 3/20/37 ........... 3,175,000 3,273,393 Portland River District Urban Renewal and Redevelopment Revenue, Series A, AMBAC Insured, 5.00%, 6/15/21 ................................................................. 3,000,000 3,133,110 Portland Sewer System Revenue, first lien, Series A, FSA Insured, 5.00%, 10/01/24 ..................................... 6,235,000 6,518,256 second lien, Refunding, Series A, FSA Insured, 5.00%, 6/01/23 .......................... 2,500,000 2,596,875 second lien, Series B, MBIA Insured, 5.00%, 6/15/28 .................................... 5,105,000 5,366,070 Portland Urban Renewal and Redevelopment Revenue, Interstate Corridor, Refunding, Series A, FGIC Insured, 5.00%, 6/15/23 ................................................................................ 2,030,000 2,129,795 6/15/24 ................................................................................ 1,295,000 1,358,662 6/15/25 ................................................................................ 2,385,000 2,502,247
Quarterly Statements of Investments | 161 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN OREGON TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) OREGON (CONTINUED) Portland Urban Renewal and Redevelopment Tax Allocation, Convention Center, Series A, AMBAC Insured, 5.50%, 6/15/20 ........................................................ $ 3,000,000 $ 3,155,460 Portland Water System Revenue, MBIA Insured, 4.50%, 10/01/27 ............................................................................... 3,725,000 3,741,688 10/01/28 ............................................................................... 3,895,000 3,863,139 Redmond GO, Series C, MBIA Insured, 5.00%, 6/01/33 ........................................ 1,260,000 1,309,505 Salem Hospital Facility Authority Revenue, Salem Hospital Project, Series A, 5.00%, 8/15/27 ................................................................................ 7,500,000 7,745,100 8/15/36 ................................................................................ 25,000,000 25,440,750 Salem-Keizer School District No. 24J GO, Pre-Refunded, 5.00%, 6/01/19 ..................... 9,500,000 9,725,530 Southwestern Community College District GO, MBIA Insured, 5.00%, 6/01/28 .................. 1,100,000 1,152,140 Sunrise Water Authority Water Revenue, sub. lien, Series B, XLCA Insured, 5.00%, 9/01/25 ................................................. 1,160,000 1,210,031 XLCA Insured, 5.00%, 3/01/25 ........................................................... 1,660,000 1,722,416 Tillamook and Yamhill Counties School District No. 101, Nestucca Valley, FSA Insured, 5.00%, 6/15/25 .......................................................................... 1,765,000 1,851,767 Tri-County Metropolitan Transportation District Revenue, Limited Obligation, Airport Light Rail, Series 1, Pre-Refunded, 5.65%, 6/01/29 ...................................... 14,080,000 14,718,810 Washington and Clackamas Counties School District No. 23 J Tigard GO, MBIA Insured, Pre-Refunded, 5.00%, 6/15/22 ............................................. 7,000,000 7,354,900 Refunding, MBIA Insured, 5.00%, 6/15/20 ................................................ 6,260,000 6,784,651 Refunding, MBIA Insured, 5.00%, 6/15/22 ................................................ 6,905,000 7,491,787 Washington Clackamas and Yamhill Counties School District No. 88J GO, Sherwood, Series A, MBIA Insured, zero cpn., 6/15/27 ................................................................................ 3,500,000 1,343,090 6/15/28 ................................................................................ 2,960,000 1,082,827 12/15/31 ............................................................................... 3,515,000 1,077,312 Washington County Clean Water Services Sewer Revenue, senior lien, FGIC Insured, 5.00%, 10/01/19 ......................................................................... 3,905,000 4,053,663 Washington County GO, Obligations, Refunding, 5.00%, 6/01/24 ................................................. 3,680,000 3,907,019 Obligations, Refunding, 4.375%, 6/01/26 ................................................ 4,375,000 4,349,844 Pre-Refunded, 5.00%, 6/01/26 ........................................................... 10,000,000 10,413,900 Washington County School District No. 48J Beaverton GO, Pre-Refunded, 5.00%, 6/01/22 ...... 4,155,000 4,364,204 Washington County Unified Sewer Agency Revenue, senior lien, Refunding, Series A, 6.20%, 10/01/10 ......................................................................... 470,000 470,982 Washington Multnomah and Yamhill Counties School District No. 1J Hillsboro GO, FSA Insured, 5.60%, 4/01/20 ................................................................. 1,000,000 1,044,140 --------------- 660,375,004 ---------------
162 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN OREGON TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) U.S. TERRITORIES 15.0% PUERTO RICO 14.0% Children's Trust Fund Puerto Rico Tobacco Settlement Revenue, Asset-Backed Bonds, Refunding, 5.625%, 5/15/43 ....................................................... $ 10,000,000 $ 10,525,100 Puerto Rico Commonwealth GO, Public Improvement, Series A, 5.00%, 7/01/29 ......................................................................... 10,000,000 10,305,800 5.125%, 7/01/31 ........................................................................ 9,885,000 10,123,327 Pre-Refunded, 5.00%, 7/01/27 ........................................................... 10,000,000 10,539,200 Pre-Refunded, 5.125%, 7/01/31 .......................................................... 5,115,000 5,370,290 Puerto Rico Commonwealth Highway and Transportation Authority Highway Revenue, Series Y, Pre-Refunded, 5.50%, 7/01/36 ............................................................ 13,000,000 14,481,480 Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Series D, Pre-Refunded, 5.375%, 7/01/36 ................................................. 10,000,000 10,710,600 Puerto Rico Electric Power Authority Power Revenue, Series II, FSA Insured, Pre-Refunded, 5.125%, 7/01/26 .................................. 9,150,000 9,779,886 Series II, Pre-Refunded, 5.25%, 7/01/31 ................................................ 12,000,000 12,883,200 Series RR, FGIC Insured, Pre-Refunded, 5.00%, 7/01/35 .................................. 10,000,000 10,769,600 Puerto Rico HFC Revenue, Sixth Portfolio, Section 8, FHA Insured, Pre-Refunded, 7.75%, 12/01/26 ............................................................................... 395,000 395,000 Puerto Rico Public Finance Corp. Revenue, Commonwealth Appropriation, Series E, 5.50%, 8/01/29 ......................................................................... 1,285,000 1,341,090 Pre-Refunded, 5.50%, 8/01/29 ........................................................... 3,715,000 3,970,518 --------------- 111,195,091 --------------- VIRGIN ISLANDS 1.0% Virgin Islands PFAR, senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/15 ............................................................................... 1,635,000 1,679,341 10/01/18 ............................................................................... 2,400,000 2,462,904 Virgin Islands Water and Power Authority Electric System Revenue, Refunding, 5.30%, 7/01/18 ................................................................................ 2,500,000 2,500,600 7/01/21 ................................................................................ 1,400,000 1,402,688 --------------- 8,045,533 --------------- TOTAL U.S. TERRITORIES .................................................................... 119,240,624 --------------- TOTAL LONG TERM INVESTMENTS (COST $751,096,581) ........................................... 779,615,628 --------------- SHORT TERM INVESTMENTS 2.5% MUNICIPAL BONDS 2.5% OREGON 1.1% c Multnomah County Hospital Facilities Authority Revenue, Holladay Park Plaza Project, Refunding, Daily VRDN and Put, 3.88%, 11/15/33 .......................................... 1,900,000 1,900,000 c Oregon Health and Science University Revenue, Special Oshu Medical Group Project, Series A, Weekly VRDN and Put, 3.72%, 7/01/33 ..................................................... 4,800,000 4,800,000 c Yamhill County Revenue, George Fox University Project, Refunding, Series A, Weekly VRDN and Put, 3.76%, 10/01/35 .................................................................... 2,100,000 2,100,000 --------------- 8,800,000 ---------------
Quarterly Statements of Investments | 163 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
------------------------------------------------------------------------------------------------------------------------------------ FRANKLIN OREGON TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ------------------------------------------------------------------------------------------------------------------------------------ SHORT TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) U.S. TERRITORIES 1.4% PUERTO RICO 1.4% c Puerto Rico Commonwealth Government Development Bank Revenue, Refunding, MBIA Insured, Weekly VRDN and Put, 3.61%, 12/01/15 ...................................................... $ 9,200,000 $ 9,200,000 c Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Series A, AMBAC Insured, Weekly VRDN and Put, 3.63%, 7/01/28 .............................. 2,100,000 2,100,000 --------------- TOTAL U.S. TERRITORIES .................................................................... 11,300,000 --------------- TOTAL SHORT TERM INVESTMENTS (COST $20,100,000) ........................................... 20,100,000 --------------- TOTAL INVESTMENTS (COST $771,196,581) 100.8% .............................................. 799,715,628 OTHER ASSETS, LESS LIABILITIES (0.8)% ..................................................... (6,337,981) --------------- NET ASSETS 100.0% ......................................................................... $ 793,377,647 ===============
See Selected Portfolio Abbreviations on page 176. a Security purchased on a when-issued or delayed delivery basis. b 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. c Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. 164 | See Notes to Statements of Investments. | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN PENNSYLVANIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS 99.5% MUNICIPAL BONDS 99.5% PENNSYLVANIA 91.6% Allegheny County Airport Authority Airport Revenue, Pittsburgh International Airport, Refunding, FGIC Insured, 5.75%, 1/01/18 ................................................. $ 1,000,000 $ 1,044,380 Allegheny County Airport Revenue, Pittsburgh International Airport, Refunding, Series B, MBIA Insured, 5.00%, 1/01/19 ............................................................ 6,000,000 6,094,800 Allegheny County COP, AMBAC Insured, 5.00%, 12/01/28 ...................................... 4,000,000 4,109,360 Allegheny County GO, MBIA Insured, Pre-Refunded, 5.00%, 11/01/27 ............................................ 1,000,000 1,055,600 Series C-60, FSA Insured, 5.00%, 11/01/32 .............................................. 4,650,000 4,900,635 Allegheny County Higher Education Building Authority University Revenue, Duquesne University, Series A, XLCA Insured, 5.00%, 3/01/29 ................................................................................ 5,000,000 5,244,950 3/01/33 ................................................................................ 6,630,000 6,940,085 Allegheny County Hospital Development Authority Revenue, Allegheny General Hospital Project, Series A, MBIA Insured, Pre-Refunded, 6.25%, 9/01/20 .............................................................................. 10,000,000 10,060,900 Health Center, Canterbury Place, Refunding, MBIA Insured, 5.375%, 12/01/21 ............. 4,500,000 4,602,645 Health System, Series A, MBIA Insured, Pre-Refunded, 6.50%, 11/15/30 ................... 10,000,000 11,039,400 Allegheny County IDAR, Environmental Improvement, USX Corp., Refunding, 6.10%, 1/15/18 ........................ 2,000,000 2,043,400 Environmental Improvement, USX Corp., Refunding, 5.50%, 12/01/29 ....................... 10,000,000 10,285,500 Environmental Improvement, USX Corp., Refunding, 5.60%, 9/01/30 ........................ 7,530,000 7,759,816 Refunding, Series B, MBIA Insured, 5.00%, 11/01/29 ..................................... 9,000,000 9,313,830 Series A, MBIA Insured, Pre-Refunded, 5.00%, 11/01/29 .................................. 5,000,000 5,278,000 Allegheny County Port Authority Special Revenue, Transportation, MBIA Insured, Pre-Refunded, 6.125%, 3/01/29 ............................................ 15,000,000 15,741,600 Refunding, FGIC Insured, 5.00%, 3/01/25 ................................................ 13,250,000 13,665,917 Refunding, FGIC Insured, 5.00%, 3/01/29 ................................................ 16,500,000 17,010,675 Allegheny County Residential Finance Authority Mortgage Revenue, SFM, Refunding, Series DD-1, GNMA Secured, 5.35%, 11/01/19 .................................. 265,000 269,184 Refunding, Series DD-2, GNMA Secured, 5.40%, 11/01/29 .................................. 1,290,000 1,309,943 Series II-2, GNMA Secured, 5.90%, 11/01/32 ............................................. 810,000 837,905 Allegheny County Sanitation Authority Sewer Revenue, Refunding, Series A, MBIA Insured, 5.00%, 12/01/30 ......................................................................... 7,000,000 7,330,190 Allegheny Valley School District GO, MBIA Insured, 5.00%, 11/01/28 ........................ 1,550,000 1,621,130 Allentown Parking Authority Parking Revenue, FSA Insured, 5.00%, 11/15/35 ................. 4,430,000 4,644,323 Armstrong County GO, Refunding, MBIA Insured, 5.40%, 6/01/31 .............................. 2,500,000 2,617,525 Bedford County GO, AMBAC Insured, 5.00%, 9/01/35 .......................................... 6,000,000 6,284,160 Bucks County IDAR, AMBAC Insured, 5.125%, 9/15/31 ......................................... 3,675,000 3,799,325 Butler Area School District GO, FSA Insured, Pre-Refunded, 5.00%, 4/01/31 ................. 4,000,000 4,258,640 Carbon County IDAR, Panther Creek Partner Project, Refunding, 6.65%, 5/01/10 .............. 2,600,000 2,674,620 Chichester School District GO, FSA Insured, 5.00%, 3/15/26 ................................ 1,830,000 1,899,101 Clarion County Hospital Authority Revenue, Clarion Hospital Project, Refunding, 5.40%, 7/01/07 ......................................................................... 540,000 540,351 5.55%, 7/01/09 ......................................................................... 2,365,000 2,411,638 5.60%, 7/01/10 ......................................................................... 600,000 611,472 5.75%, 7/01/12 ......................................................................... 1,795,000 1,832,013 5.75%, 7/01/17 ......................................................................... 700,000 712,677 5.625%, 7/01/21 ........................................................................ 1,500,000 1,520,535
Quarterly Statements of Investments | 165 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN PENNSYLVANIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) PENNSYLVANIA (CONTINUED) Council Rock School District GO, Series A, MBIA Insured, Pre-Refunded, 5.00%, 11/15/22 .... $ 5,180,000 $ 5,427,552 Cumberland County Municipal Authority College Revenue, Dickinson College, a Association of Independent Colleges and Universities of Pennsylvania Financing Program, Series GG1, MBIA Insured, 5.00%, 5/01/34 ............................................. 4,305,000 4,524,555 Series A, AMBAC Insured, Pre-Refunded, 5.50%, 11/01/30 ................................. 1,200,000 1,264,548 Dauphin County General Authority Health System Revenue, Pinnacle Health, MBIA Insured, 5.50%, 5/15/17 .......................................................................... 1,015,000 1,026,601 Dauphin County General Authority Hospital Revenue, Hapsco-Western Hospital Project, Refunding, Series A, MBIA Insured, 6.50%, 7/01/12 ...................................... 4,500,000 4,504,680 Series B, MBIA Insured, ETM, 6.25%, 7/01/16 ............................................ 5,000,000 5,537,850 Deer Lakes School District GO, Series A, FSA Insured, Pre-Refunded, 5.00%, 1/15/23 ........ 1,000,000 1,007,990 Delaware County Authority College Revenue, Cabrini College, Radian Insured, Pre-Refunded, 5.875%, 7/01/29 ......................... 5,245,000 5,468,280 Cabrini College, Refunding, Radian Insured, 5.875%, 7/01/29 ............................ 1,140,000 1,177,472 Eastern College, Series C, 5.625%, 10/01/28 ............................................ 2,210,000 2,234,443 Haverford College, 5.75%, 11/15/29 ..................................................... 3,500,000 3,721,060 Haverford College, 6.00%, 11/15/30 ..................................................... 1,750,000 1,877,960 Delaware County Authority Hospital Revenue, Crozer Keystone Obligation, Group A, 5.00%, 12/15/31 ................................................................................ 5,000,000 5,030,050 Delaware County Authority Revenue, Dunwoody Village Project, Pre-Refunded, 6.25%, 4/01/30 ................................. 1,800,000 1,865,088 Health Facilities, Mercy Health Corp. Project, ETM, 6.00%, 12/15/26 .................... 10,800,000 11,039,004 Delaware County IDAR, Philadelphia Suburban Water Co. Project, FGIC Insured, 6.00%, 6/01/29 ................................................................................. 2,000,000 2,091,880 Delaware County University Authority Revenue, Villanova University, Series A, MBIA Insured, 5.00%, 12/01/28 ......................................................................... 3,000,000 3,066,120 Delaware Valley Regional Finance Authority Local Government Revenue, Series B, AMBAC Insured, 5.60%, 7/01/17 ........................................................... 5,000,000 5,609,250 Erie County Hospital Authority Revenue, Hamot Health Foundation, CIFG Insured, 5.00%, 11/01/35 ................................................................................ 6,000,000 6,258,120 Erie County IDA Environmental Improvement Revenue, International Paper Co. Project, Refunding, Series B, 6.00%, 9/01/16 ..................................................... 600,000 625,902 Erie GO, Series E, FGIC Insured, 5.25%, 11/15/25 .......................................... 5,000,000 5,221,000 Erie School District GO, AMBAC Insured, Pre-Refunded, 5.80%, 9/01/29 ...................... 3,000,000 3,181,020 Greater Johnstown School District GO, Series C, MBIA Insured, 5.125%, 8/01/25 ............. 3,615,000 3,756,419 Hazleton Area School District GO, Series B, FGIC Insured, 5.00%, 3/01/23 .................. 4,455,000 4,481,685 Hazleton Health Services Authority Hospital Revenue, Hazleton General Hospital, 5.50%, 7/01/27 ................................................................................. 1,500,000 1,504,875 Indiana County IDAR, Indiana University of Pennsylvania, Refunding, AMBAC Insured, 5.00%, 11/01/29 ................................................................................ 1,250,000 1,307,363 Johnstown RDA Sewer Revenue, Series A, FSA Insured, Pre-Refunded, 5.00%, 8/15/34 .......... 1,825,000 1,948,607 Lancaster County Hospital Authority Revenue, Health Center, Masonic Homes Project, 5.00%, 11/01/31 ................................................. 3,000,000 3,056,220 Willow Valley Retirement Project, 5.875%, 6/01/21 ...................................... 1,000,000 1,042,120 Latrobe IDAR, St. Vincent College Project, 5.70%, 5/01/31 ................................. 1,500,000 1,575,795
166 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN PENNSYLVANIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) PENNSYLVANIA (CONTINUED) Lehigh County General Purpose Authority Revenues, Good Shepherd Rehabilitation Hospital, Refunding, AMBAC Insured, 5.25%, 11/15/27 ....... $ 5,000,000 $ 5,104,300 Lehigh Valley Hospital, Health Network, Series A, MBIA Insured, 5.00%, 7/01/28 ......... 4,000,000 4,060,400 Lehigh Valley Hospital, Health Network, Series B, FSA Insured, 5.25%, 7/01/19 .......... 2,750,000 2,899,188 Lower Merion Township School District GO, Refunding, 4.375%, 5/15/18 ...................... 1,000,000 1,010,030 Luzerne County GO, Series D, FGIC Insured, Pre-Refunded, 5.00%, 11/15/26 .................. 2,000,000 2,076,760 Lycoming County Authority College Revenue, Pennsylvania College of Technology, AMBAC Insured, 5.25%, 5/01/32 .......................................................... 5,030,000 5,241,361 Refunding, AMBAC Insured, 5.35%, 7/01/26 ............................................... 2,400,000 2,499,480 Mercer County GO, FGIC Insured, 5.00%, 10/01/31 ........................................... 2,000,000 2,055,360 Mercer County IDA Water Facilities Revenue, MBIA Insured, 6.00%, 7/01/30 .................. 5,000,000 5,267,000 Montgomery County GO, 5.00%, 9/15/22 ...................................................... 3,335,000 3,459,429 Montgomery County Higher Education and Health Authority Revenue, Faulkeways at Gwynedd Project, Pre-Refunded, 6.75%, 11/15/24 ............................................................................... 400,000 431,032 11/15/30 ............................................................................... 1,000,000 1,077,580 Montgomery County IDA Retirement Community Revenue, Acts Retirement Communities, Refunding, Series B, 5.00%, 11/15/22 ...................... 2,000,000 2,046,820 Adult Community Total Services Retirement-Life Communities Inc., 5.25%, 11/15/28 ....... 5,000,000 5,054,700 Mount Pleasant Business District Authority Hospital Revenue, Frick Hospital, Pre-Refunded, 5.70%, 12/01/13 ........................................................................ 1,205,000 1,240,294 5.75%, 12/01/17 ........................................................................ 500,000 514,765 5.75%, 12/01/27 ........................................................................ 1,600,000 1,647,248 Muhlenberg School District GO, Series AA, FGIC Insured, 5.00%, 9/01/22 ......................................................................... 1,390,000 1,437,747 Pre-Refunded, 6.00%, 9/01/23 ........................................................... 4,000,000 4,265,520 New Wilmington Municipal Authority College Revenue, Westminster College, 5.35%, 3/01/28 ... 2,250,000 2,260,643 Norristown Area School District GO, FGIC Insured, Pre-Refunded, 5.00%, 9/01/27 ............ 5,000,000 5,285,350 Northampton Boro Municipal Authority Water Revenue, MBIA Insured, 5.00%, 5/15/34 ......................................................................... 445,000 463,249 Pre-Refunded, 5.00%, 5/15/34 ........................................................... 1,955,000 2,083,463 Norwin School District GO, FGIC Insured, Pre-Refunded, 6.00%, 4/01/30 ............................................. 5,000,000 5,275,000 FSA Insured, Pre-Refunded, 5.00%, 4/01/35 .............................................. 3,000,000 3,227,940 Series A, MBIA Insured, 5.00%, 4/01/30 ................................................. 1,000,000 1,025,080 Series B, MBIA Insured, Pre-Refunded, 5.00%, 4/01/31 ................................... 6,390,000 6,593,010 Pennsbury School District GO, FGIC Insured, Pre-Refunded, 5.00%, 1/15/22 .................. 2,835,000 2,942,191 Pennsylvania Economic Development Financing Authority Revenue, Lincoln University, Series A, FGIC Insured, 5.00%, 6/01/33 ......................................................... 3,325,000 3,464,218 Pennsylvania HFAR, Future Income Growth Securities, SFM, Series 64, zero cpn. to 10/01/08, 5.25% thereafter, 4/01/30 .................................................................. 3,050,000 2,863,432 SFM, Refunding, Series 63A, zero cpn., 4/01/30 ......................................... 10,885,000 3,082,632 SFM, Refunding, Series 72A, 5.25%, 4/01/21 ............................................. 7,000,000 7,174,440 Pennsylvania State Higher Education Facilities Authority Revenue, Philadelphia University, Refunding, 5.00%, 6/01/30 ............................................................... 2,295,000 2,321,989
Quarterly Statements of Investments | 167 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN PENNSYLVANIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) PENNSYLVANIA (CONTINUED) Pennsylvania State Higher Educational Facilities Authority College and University Revenues, Allegheny College, Series B, 6.125%, 11/01/13 .......................................... $ 90,000 $ 90,169 Drexel University, MBIA Insured, 5.75%, 5/01/22 ........................................ 3,095,000 3,178,410 Marywood University Project, MBIA Insured, Pre-Refunded, 5.65%, 6/01/25 ................ 2,500,000 2,629,500 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 17,331,840 Pennsylvania State Higher Educational Facilities Authority Revenue, Bryn Mawr College, AMBAC Insured, 5.125%, 12/01/29 ..................................... 1,500,000 1,549,005 Drexel University, Series A, 5.00%, 5/01/20 ............................................ 1,485,000 1,535,327 Drexel University, Series A, 5.20%, 5/01/29 ............................................ 750,000 782,588 Scranton University, Refunding, Series A, XLCA Insured, 5.00%, 11/01/35 ................ 5,000,000 5,230,100 State System of Higher Education, Series R, FSA Insured, 5.00%, 6/15/24 ................ 3,140,000 3,195,641 Temple University, First Series, MBIA Insured, Pre-Refunded, 5.00%, 7/15/31 ............ 2,500,000 2,632,550 Temple University, Refunding, MBIA Insured, 5.00%, 4/01/28 ............................. 5,000,000 5,261,900 Temple University, Refunding, MBIA Insured, 5.00%, 4/01/33 ............................. 10,000,000 10,508,800 Trustees University of Pennsylvania, Refunding, Series C, 5.00%, 7/15/38 ............... 5,000,000 5,209,500 University Sciences Philadelphia, Refunding, Series A, XLCA Insured, 5.00%, 11/01/36 ... 8,315,000 8,661,652 Widener University, 5.00%, 7/15/31 ..................................................... 500,000 506,295 Pennsylvania State Public School Building Authority Lease Revenue, School District Philadelphia Project, Refunding, Series B, FSA Insured, 5.00%, 6/01/26 ....................................... 5,000,000 5,254,400 Series A, FSA Insured, 5.00%, 6/01/31 .................................................. 5,000,000 5,214,900 Pennsylvania State Public School Building Authority Revenue, Career Institute of Technology, FGIC Insured, 5.00%, 11/15/28 .......................... 1,000,000 1,048,720 Central Montgomery County Area, FGIC Insured, 5.00%, 5/15/24 ........................... 2,500,000 2,610,150 Lehigh Career and Technical Institution, MBIA Insured, Pre-Refunded, 5.00%, 10/01/31 ... 1,000,000 1,046,550 Pennsylvania State Turnpike Commission Oil Franchise Tax Revenue, Series B, MBIA Insured, 5.00%, 12/01/24 ........................................................................ 1,655,000 1,722,838 Pre-Refunded, 5.00%, 12/01/31 .......................................................... 5,000,000 5,318,500 Pennsylvania State Turnpike Commission Revenue, AMBAC Insured, Pre-Refunded, 5.00%, 7/15/28 ................................................................................ 10,000,000 10,530,200 7/15/31 ................................................................................ 10,000,000 10,530,200 Pennsylvania State Turnpike Commission Turnpike Revenue, Series A, AMBAC Insured, 5.00%, 12/01/34 ............................................... 5,000,000 5,235,100 Series R, AMBAC Insured, 5.00%, 12/01/26 ............................................... 2,000,000 2,083,920 Series R, AMBAC Insured, 5.00%, 12/01/30 ............................................... 11,125,000 11,563,992 Pennsylvania State University Revenue, 5.00%, 9/01/35 ..................................... 1,000,000 1,045,950 Pennsylvania Turnpike Commission Oil Franchise Tax Revenue, Refunding, Series B, AMBAC Insured, 5.00%, 12/01/27 .......................................................... 3,000,000 3,162,210 Philadelphia Authority for IDR, Please Touch Museum Project, 5.25%, 9/01/36 ............................................ 4,710,000 4,923,551 Series B, AMBAC Insured, 5.25%, 7/01/31 ................................................ 2,000,000 2,088,560 Philadelphia Gas Works Revenue, Twelfth Series B, MBIA Insured, ETM, 7.00%, 5/15/20 ....... 935,000 1,100,074 Philadelphia Hospitals and Higher Educational Facilities Authority Revenue, Temple University Hospital, 5.875%, 11/15/23 ................................................... 5,000,000 5,058,000 Philadelphia Housing Authority Capital Fund Program Revenue, Series A, FSA Insured, 5.00%, 12/01/21 ......................................................................... 5,000,000 5,239,600
168 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN PENNSYLVANIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) PENNSYLVANIA (CONTINUED) Philadelphia IDA Lease Revenue, Series B, FSA Insured, 5.125%, 10/01/26 ................... $ 12,000,000 $ 12,523,800 Philadelphia Parking Authority Parking Revenue, Airport, FSA Insured, 5.25%, 9/01/22 ................................................................................ 3,250,000 3,366,415 9/01/29 ................................................................................ 13,000,000 13,445,900 Philadelphia RDA Revenue, Neighborhood Transformation, Series C, FGIC Insured, 5.00%, 4/15/31 ................................................................................. 14,565,000 15,149,493 Philadelphia School District GO, Series A, FGIC Insured, 5.00%, 6/01/34 ................................................. 7,625,000 8,330,770 Series C, MBIA Insured, Pre-Refunded, 5.75%, 3/01/29 ................................... 8,000,000 8,397,360 Series D, FGIC Insured, Pre-Refunded, 5.125%, 6/01/34 .................................. 5,000,000 5,368,350 Philadelphia Water and Wastewater Revenue, Refunding, Series B, AMBAC Insured, 4.75%, 11/01/31 .................................... 5,000,000 5,086,100 Series A, FGIC Insured, 5.00%, 11/01/31 ................................................ 7,515,000 7,769,683 Series A, FSA Insured, 5.00%, 7/01/28 .................................................. 5,000,000 5,229,500 Series A, FSA Insured, 5.00%, 7/01/29 .................................................. 11,645,000 12,171,354 Series A, FSA Insured, 5.00%, 7/01/35 .................................................. 4,500,000 4,694,085 Pine-Richland School District GO, FSA Insured, 5.00%, 7/15/35 ............................. 12,485,000 13,068,799 Pittsburgh Public Parking Authority Parking Revenue, AMBAC Insured, Pre-Refunded, 6.00%, 12/01/24 ......................................................................... 2,000,000 2,123,200 Pittsburgh Urban RDA Mortgage Revenue, Series C, GNMA Secured, 5.70%, 4/01/30 ............. 1,310,000 1,330,462 Pittsburgh Urban RDA Tax Allocation, 6.10%, 5/01/19 ....................................... 1,000,000 1,039,980 Pittsburgh Water and Sewer Authority Revenue, FGIC Insured, ETM, 7.25%, 9/01/14 ........... 1,015,000 1,127,269 Plum Boro School District GO, FGIC Insured, Pre-Refunded, 5.25%, 9/15/30 .................. 8,870,000 9,365,656 Pocono Mountain School District GO, Series C, FSA Insured, 5.00%, 9/01/34 ................. 4,000,000 4,201,120 Reading School District GO, FSA Insured, 5.00%, 1/15/36 ................................... 23,790,000 24,924,545 Sayre Health Care Facilities Authority Revenue, Guthrie Healthcare System, Refunding, Series A, 5.875%, 12/01/31 .................................................. 555,000 589,549 Series A, Pre-Refunded, 5.875%, 12/01/31 ............................................... 1,945,000 2,118,980 Seneca Valley School District GO, MBIA Insured, Pre-Refunded, 5.375%, 1/01/21 ............. 2,000,000 2,126,700 Southcentral General Authority Revenue, Wellspan Health Obligated, MBIA Insured, ETM, 5.25%, 5/15/31 ........................... 1,875,000 1,985,588 Wellspan Health Obligated, MBIA Insured, Pre-Refunded, 5.25%, 5/15/31 .................. 8,125,000 8,616,481 a York College of Pennsylvania, Associates, XLCA Insured, 5.00%, 5/01/37 ................. 2,090,000 2,177,780 Southern Lehigh School District GO, Series A, FGIC Insured, Pre-Refunded, 5.00%, 9/01/25 .. 6,900,000 7,272,807 Southmoreland School District GO, MBIA Insured, 5.00%, 4/01/27 ............................ 5,025,000 5,266,451 State Public School Building Authority College Revenue, Westmoreland County Community College, FGIC Insured, 5.25%, 10/15/22 .................................................. 2,170,000 2,284,641 State Public School Building Authority School Revenue, Daniel Boone School District Project, MBIA Insured, Pre-Refunded, 5.00%, 4/01/28 ....... 10,000,000 10,578,100 Northwestern School District Project, Series E, FGIC Insured, Pre-Refunded, 5.75%, 1/15/19 ....................................................................... 3,000,000 3,094,260 Philadelphia School District Project, FSA Insured, Pre-Refunded, 5.00%, 6/01/33 37,170,000 39,375,668 Susquehanna Area Regional Airport Authority Revenue, Series A, AMBAC Insured, 5.00%, 1/01/28 .......................................................................... 2,000,000 2,048,740 Twin Valley School District GO, FSA Insured, 5.00%, 4/01/23 ............................... 2,915,000 3,057,048 University of Pittsburgh Revenue, Higher Education, Series B, MBIA Insured, Pre-Refunded, 5.00%, 6/01/21 .......................................................................... 10,000,000 10,200,000
Quarterly Statements of Investments | 169 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN PENNSYLVANIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) PENNSYLVANIA (CONTINUED) Upper St. Clair Township School District GO, FSA Insured, 5.00%, 7/15/28 ............................................................ $ 1,000,000 $ 1,033,160 Pre-Refunded, 5.20%, 7/15/27 ........................................................... 3,500,000 3,505,740 Washington County Authority Revenue, Capital Projects and Equipment Program, Refunding, AMBAC Insured, 6.15%, 12/01/29 .......................................................... 2,200,000 2,327,468 Washington County GO, Series A, AMBAC Insured, 5.125%, 9/01/27 ............................ 5,000,000 5,219,950 West Allegheny School District GO, Refunding, Series D, FGIC Insured, 4.75%, 9/01/19 ................................................................................ 2,000,000 2,049,300 9/01/20 3,805,000 3,892,211 Wilkes-Barre Finance Authority Revenue, Wilkes University Project, Refunding, 5.00%, 3/01/37 ................................................................................. 4,500,000 4,537,665 York County GO, MBIA Insured, 5.00%, 6/01/33 .............................................. 6,500,000 6,820,710 --------------- 823,224,915 --------------- U.S. TERRITORIES 7.9% PUERTO RICO 7.3% Puerto Rico Commonwealth GO, Public Improvement, Series A, 5.00%, 7/01/29 ......................................................................... 4,000,000 4,122,320 5.00%, 7/01/33 ......................................................................... 30,000,000 30,772,200 Pre-Refunded, 5.00%, 7/01/27 ........................................................... 7,000,000 7,377,440 Puerto Rico Commonwealth Infrastructure Financing Authority Special Tax Revenue, 5.00%, 7/01/37 ................................................................................. 7,010,000 7,236,844 Puerto Rico Electric Power Authority Power Revenue, Series TT, 5.00%, 7/01/32 ............. 10,100,000 10,505,010 Puerto Rico PBA Guaranteed Revenue, Government Facilities, Series I, 5.00%, 7/01/36 ....... 5,950,000 6,121,062 --------------- 66,134,876 --------------- VIRGIN ISLANDS 0.6% Virgin Islands PFAR, Gross Receipts Taxes Loan Note, Radian Insured, 5.00%, 10/01/33 ...... 5,000,000 5,198,450 --------------- TOTAL U.S. TERRITORIES .................................................................... 71,333,326 --------------- TOTAL LONG TERM INVESTMENTS (COST $861,321,935) ........................................... 894,558,241 --------------- SHORT TERM INVESTMENT (COST $300,000) 0.0% b MUNICIPAL BOND 0.0% b PENNSYLVANIA 0.0% b c York General Authority Pooled Financing Revenue, Sub Series 1996-B, AMBAC Insured, Weekly VRDN and Put, 3.78%, 9/01/26 ..................................................... 300,000 300,000 --------------- TOTAL INVESTMENTS (COST $861,621,935) 99.5% ............................................... 894,858,241 OTHER ASSETS, LESS LIABILITIES 0.5% ....................................................... 4,145,922 --------------- NET ASSETS 100.0% ......................................................................... $ 899,004,163 ===============
See Selected Portfolio Abbreviations on page 176. a Security purchased on a when-issued or delayed delivery basis. b Rounds to less than 0.1% of net assets. c Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. 170 | See Notes to Statements of Investments. | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN VIRGINIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS 99.2% MUNICIPAL BONDS 99.2% VIRGINIA 76.7% Abingdon IDA Hospital Facilities Revenue, Johnston Memorial Hospital, Refunding, 5.375%, 7/01/28 .................................................................................. $ 5,000,000 $ 5,115,400 Alexandria IDA Educational Facilities Revenue, Episcopal High School, Pre-Refunded, 5.875%, 1/01/29 .................................................................................. 2,500,000 2,604,275 Arlington County GO, Public Improvement, Pre-Refunded, 5.00%, 2/01/22 ...................... 2,060,000 2,159,992 a Bedford County IDA, IDR, Nekoosa Packaging Corp. Project, Refunding, 6.30%, 12/01/25 ......................................................................... 2,000,000 2,071,160 Series A, 6.55%, 12/01/25 ............................................................... 5,000,000 5,206,800 Bristol Utility System Revenue, ETM, 5.00%, 7/15/21 ........................................ 1,245,000 1,312,716 Caroline County IDA Lease Revenue, AMBAC Insured, 5.125%, 6/15/34 .......................... 1,000,000 1,051,430 Chesapeake Toll Road Revenue, Expressway, Series A, 5.625%, 7/15/19 ................................................................................. 3,250,000 3,396,412 7/15/32 ................................................................................. 8,000,000 8,310,800 Dinwiddie County IDA Lease Revenue, Refunding, Series B, MBIA Insured, 5.00%, 2/15/30 ................................................................................. 1,410,000 1,467,627 2/15/34 ................................................................................. 3,155,000 3,278,360 Fairfax County EDA Revenue, National Wildlife Federation, MBIA Insured, 5.375%, 9/01/29 .................................................................................. 8,000,000 8,311,280 Fairfax County EDA Transportation Contract Revenue, Route 28 Project, MBIA Insured, 5.00%, 4/01/33 .................................................................................. 2,000,000 2,086,700 Fairfax County IDAR, Health Care, Inova Health System Project, Refunding, Series A, 5.00%, 8/15/18 ................................................................................. 2,100,000 2,132,235 8/15/25 ................................................................................. 5,000,000 5,050,600 Fairfax County Redevelopment and Housing Authority MFHR, Paul Spring Center, Refunding, Series A, FHA Insured, 5.90%, 6/15/17 .......................................................................... 1,000,000 1,021,650 6.00%, 12/15/28 ......................................................................... 1,000,000 1,025,900 Fairfax County Water Authority Water Revenue, Pre-Refunded, 5.00%, 4/01/27 ............................................................ 2,830,000 2,971,840 Refunding, 5.00%, 4/01/27 ............................................................... 11,420,000 11,834,546 Fredericksburg IDA Hospital Facilities Revenue, Medicorp Health System Obligation, Refunding, AMBAC Insured, 5.25%, 6/15/23 ................................................ 10,000,000 10,204,100 Front Royal and Warren County IDA Lease Revenue, School and Capital Improvement, Series B, FSA Insured, 5.00%, 4/01/29 ................................................................................. 7,115,000 7,406,359 4/01/35 ................................................................................. 6,000,000 6,256,500 Gloucester County IDA Lease Revenue, Courthouse Project, MBIA Insured, Pre-Refunded, 5.50%, 11/01/30 .......................................................................... 1,715,000 1,822,325 Greater Richmond Convention Center Authority Hotel Tax Revenue, Convention Center Expansion Project, Pre-Refunded, 6.125%, 6/15/29 ...................... 8,000,000 8,598,560 Convention Center Expansion Project, Pre-Refunded, 6.25%, 6/15/32 ....................... 8,175,000 8,815,593 Refunding, MBIA Insured, 5.00%, 6/15/30 ................................................. 8,000,000 8,360,080 Hampton Convention Center Revenue, Refunding, AMBAC Insured, 5.25%, 1/15/23 .......................................................................... 3,000,000 3,157,410 5.125%, 1/15/28 ......................................................................... 2,605,000 2,724,231 5.00%, 1/15/35 .......................................................................... 8,600,000 8,914,244
Quarterly Statements of Investments | 171 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN VIRGINIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) VIRGINIA (CONTINUED) Hampton Redevelopment and Housing Authority Senior Living Assn. Revenue, Refunding, Series A, GNMA Secured, 6.00%, 1/20/26 ................................................... $ 1,060,000 $ 1,095,616 Hampton Roads Regional Jail Authority Jail Facilities Revenue, Series A, MBIA Insured, 5.00%, 7/01/28 ........................................................................... 10,000,000 10,080,600 Harrisonburg GO, FSA Insured, 5.75%, 12/01/29 .............................................. 1,000,000 1,075,230 b Harrisonburg IDA Revenue, Facilities, Rockingham Memorial Hospital, AMBAC Insured, 5.00%, 8/15/46 .................................................................................. 15,000,000 15,535,800 Harrisonburg IDAR, Facilities, Rockingham Memorial Hospital, AMBAC Insured, 5.00%, 8/15/42 .................................................................................. 9,595,000 9,966,998 Isle Wight County IDA Environmental Improvement Revenue, International Paper Co. Project, Series A, 6.60%, 5/01/24 ................................................................. 2,000,000 2,116,660 Isle Wight County IDAR, International Paper Co. Project, Series A, 5.85%, 1/01/18 .......... 4,155,000 4,322,239 King George County IDA Lease Revenue, FSA Insured, 5.00%, 3/01/32 .......................... 3,595,000 3,749,190 Leesburg Utilities System Revenue, MBIA Insured, Pre-Refunded, 5.125%, 7/01/22 ............. 3,000,000 3,062,910 Loudoun County IDA Hospital Revenue, Loudoun Hospital Center, Series A, Pre-Refunded, 6.10%, 6/01/32 ........................................................................... 1,500,000 1,659,225 Lynchburg IDA Healthcare Facilities Revenue, Centra Health, Pre-Refunded, 5.20%, 1/01/28 .................................................................................. 8,000,000 8,146,320 Middle River Regional Jail Authority Jail Facility Revenue, MBIA Insured, 5.00%, 5/15/28 ... 1,000,000 1,048,720 Middlesex County IDA Lease Revenue, School Facilities Project, MBIA Insured, Pre-Refunded, 5.875%, 8/01/21 ......................................................................... 1,420,000 1,508,977 6.10%, 8/01/26 .......................................................................... 1,725,000 1,841,058 Montgomery County IDA Lease Revenue, Series B, AMBAC Insured, Pre-Refunded, 5.50%, 1/15/22 .................................................................................. 1,000,000 1,064,850 Newport News EDA, EDR, Series A, 5.00%, 1/15/31 ............................................ 6,000,000 6,299,340 Newport News IDA Mortgage Revenue, Mennowood Communities Inc., Series A, GNMA Secured, 6.25%, 8/01/36 ........................................................................... 2,950,000 3,040,654 Newport News Redevelopment and Housing Authority Revenue, Refunding, Series A, GNMA Secured, 5.85%, 12/20/30 ............................................................ 4,060,000 4,164,220 Norfolk Airport Authority Revenue, Series B, FGIC Insured, 5.125%, 7/01/31 ................. 1,440,000 1,475,251 Norfolk GO, Capital Improvements, Series B, FSA Insured, Pre-Refunded, 5.00%, 7/01/22 ...... 1,720,000 1,810,300 Norfolk IDAR, Health Care, Bon Secours Health, Series B, MBIA Insured, Pre-Refunded, 5.25%, 8/15/26 ........................................................................... 3,000,000 3,068,700 Norfolk Water Revenue, MBIA Insured, 5.90%, 11/01/25 ....................................... 5,000,000 5,044,550 Northwestern Regional Jail Authority Jail Facilities Revenue, MBIA Insured, 5.00%, 7/01/33 .................................................................................. 4,350,000 4,567,804 Orange County IDAR, Public Facility, Orange County Project, AMBAC Insured, 5.00%, 2/01/34 .................................................................................. 1,000,000 1,039,110 Peninsula Ports Authority Hospital Facilities Revenue, Whittaker Memorial Hospital Project, Refunding, FHA Insured, 8.70%, 8/01/23 ................................................... 50,000 56,403 Port Authority Commonwealth Port Fidelity Revenue, MBIA Insured, 4.75%, 7/01/28 ............ 1,500,000 1,524,090 Powhatan Co. EDA Lease Revenue, Virginia Capital Projects, AMBAC Insured, 5.25%, 7/15/33 .................................................................................. 1,000,000 1,056,360 Prince William County IDA, MFHR, Remington Place Apartments Project, Series A-1, AMBAC Insured, 6.00%, 12/01/33 ........................................................... 2,080,000 2,155,234
172 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN VIRGINIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) VIRGINIA (CONTINUED) Prince William County Service Authority Water and Sewer System Revenue, FGIC Insured, 5.50%, 7/01/29 ............................................................ $ 5,000,000 $ 5,222,100 Refunding, 5.00%, 7/01/32 ............................................................... 7,045,000 7,373,227 Richmond GO, FGIC Insured, 5.00%, 7/15/19 .................................................. 3,690,000 3,857,157 Richmond IDA Student Housing Revenue, University Real Estate Foundation, 5.55%, 1/01/31 .................................................................................. 4,400,000 4,693,568 Richmond Public Facilities COP, 800 Megahertz Project, Series A, AMBAC Insured, 5.00%, 8/01/22 .................................................................................. 2,000,000 2,062,620 Richmond Public Utility Revenue, FSA Insured, 5.00%, 1/15/35 .......................................................................... 3,500,000 3,664,395 Pre-Refunded, 5.00%, 1/15/33 ............................................................ 8,500,000 8,909,020 Spotsylvania County Water and Sewer System Revenue, MBIA Insured, Pre-Refunded, 5.25%, 6/01/22 .......................................................................... 2,500,000 2,550,000 5.40%, 6/01/27 .......................................................................... 6,800,000 6,936,000 Stafford County and Staunton IDAR, Virginia Municipal League Assn. Counties Program, Series A, MBIA Insured, 5.25%, 8/01/31 ................................................... 5,000,000 5,399,300 Stafford County EDA Hospital Facilities Revenue, Medicorp Health System Obligation, 5.25%, 6/15/37 .................................................................................. 5,000,000 5,178,000 University of Virginia Revenue, General, 5.00%, 6/01/37 ................................................................. 15,000,000 15,724,200 Series A, 5.00%, 6/01/33 ................................................................ 14,000,000 14,542,500 Virginia Beach Water and Sewer Revenue, Pre-Refunded, 5.25%, 8/01/21 ............................................................ 1,865,000 1,944,598 System, Refunding, 5.00%, 10/01/30 ...................................................... 3,300,000 3,450,579 Virginia College Building Authority Educational Facilities Revenue, 21st Century College Program, Pre-Refunded, 5.00%, 2/01/21 .............................. 1,000,000 1,038,520 Hampton University Project, Pre-Refunded, 6.00%, 4/01/20 ................................ 1,500,000 1,600,095 Regent University Project, MBIA Insured, Pre-Refunded, 5.125%, 10/01/21 ................. 5,000,000 5,257,450 Regent University Project, MBIA Insured, Pre-Refunded, 5.125%, 10/01/31 ................. 4,050,000 4,258,534 Virginia Commonwealth Transportation Board Transportation Revenue, Northern Virginia Transportation Program, Refunding, Series A, 5.00%, 5/15/27 ........... 8,920,000 9,211,238 U.S. Route 58 Corridor Development Program, Series B, Pre-Refunded, 5.00%, 5/15/24 ...... 2,000,000 2,084,120 U.S. Route 58 Corridor Development Program, Series B, Pre-Refunded, 5.00%, 5/15/26 ...... 10,000,000 10,420,600 Virginia State HDA, MFHR, Series C, 5.30%, 11/01/16 ............................................................... 1,000,000 1,032,600 Series H, 5.55%, 5/01/15 ................................................................ 1,000,000 1,028,750 Virginia State HDA Rental Housing Revenue, Series J, 5.80%, 2/01/19 ................................................................ 2,000,000 2,055,680 Series L, 5.75%, 2/01/15 ................................................................ 1,000,000 1,034,690 Virginia State Public School Authority GO, School Financing, Series A, 5.00%, 8/01/20 ................................................................ 3,000,000 3,135,570 Series A, 5.00%, 8/01/21 ................................................................ 4,000,000 4,176,080 Series C, 5.00%, 8/01/22 ................................................................ 2,000,000 2,085,700 Series C, 5.00%, 8/01/26 ................................................................ 10,925,000 11,388,875 Virginia State Resources Authority Airports Revenue, Revolving Fund, Series A, 5.00%, 8/01/27 .................................................................................. 3,000,000 3,073,230
Quarterly Statements of Investments | 173 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN VIRGINIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) VIRGINIA (CONTINUED) Virginia State Resources Authority Infrastructure Revenue, Senior Series A, 5.00%, 11/01/31 ........................................................ $ 5,000,000 $ 5,288,050 Senior Series A, 5.00%, 11/01/36 ........................................................ 4,915,000 5,190,338 Virginia Pooled Financing Program, Refunding, Senior Series C, 5.00%, 11/01/36 .......... 7,315,000 7,724,786 Virginia Pooled Financing Program, Senior Series, 5.00%, 11/01/33 ....................... 5,000,000 5,205,300 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 10,035 Rapidan Service Authority, Refunding, 5.30%, 10/01/18 ................................... 1,610,000 1,647,674 Tuckahoe Service District Project, 5.00%, 11/01/35 ...................................... 2,000,000 2,080,740 Winchester IDA Hospital Revenue, Valley Health System Obligated, 5.25%, 1/01/37 ............ 5,000,000 5,217,700 York County Sewer Revenue, Pre-Refunded, 5.875%, 6/01/24 ................................................................................. 500,000 525,115 6/01/29 ................................................................................. 1,500,000 1,575,345 --------------- 427,099,613 --------------- DISTRICT OF COLUMBIA 5.9% Metropolitan Washington D.C. Airports Authority Airport System Revenue, Refunding, Series A, FGIC Insured, 5.00%, 10/01/25 ...................................... 1,000,000 1,030,510 Refunding, Series A, FSA Insured, 5.00%, 10/01/32 ....................................... 10,000,000 10,345,800 Series B, FGIC Insured, Pre-Refunded, 5.25%, 10/01/32 ................................... 6,655,000 7,089,239 Metropolitan Washington D.C. Airports Authority General Airport Revenue, Refunding, Series A, FGIC Insured, 5.00%, 10/01/27 ...................................... 5,000,000 5,113,750 Series A, Pre-Refunded, 5.375%, 10/01/23 ................................................ 3,000,000 3,045,810 Series B, 5.75%, 10/01/20 ............................................................... 6,000,000 6,095,760 --------------- 32,720,869 --------------- U.S. TERRITORIES 16.6% PUERTO RICO 13.6% Puerto Rico Commonwealth GO, Public Improvement, Series A, 5.00%, 7/01/29 .......................................................................... 8,000,000 8,244,640 5.125%, 7/01/31 ......................................................................... 3,315,000 3,394,925 5.00%, 7/01/33 .......................................................................... 2,000,000 2,051,480 FGIC Insured, Pre-Refunded, 5.00%, 7/01/32 .............................................. 15,000,000 15,808,800 Pre-Refunded, 5.125%, 7/01/31 ........................................................... 1,685,000 1,769,098 Puerto Rico Commonwealth Highway and Transportation Authority Highway Revenue, Series Y, Pre-Refunded, 5.50%, 7/01/36 ............................................................. 4,500,000 5,012,820 Puerto Rico Commonwealth Highway and Transportation Authority Transportation Revenue, Series D, Pre-Refunded, 5.375%, 7/01/36 ................................................. 5,000,000 5,355,300 Series D, Pre-Refunded, 5.25%, 7/01/38 .................................................. 3,000,000 3,196,020 Series G, 5.00%, 7/01/33 ................................................................ 1,695,000 1,739,545 Series G, Pre-Refunded, 5.00%, 7/01/33 .................................................. 3,305,000 3,512,653 Puerto Rico Commonwealth Infrastructure Financing Authority Special Tax Revenue, Series A, AMBAC Insured, Pre-Refunded, 5.00%, 7/01/28 .............................................. 4,000,000 4,069,840 Puerto Rico Electric Power Authority Power Revenue, Series HH, FSA Insured, Pre-Refunded, 5.25%, 7/01/29 .................................... 5,910,000 6,217,556 Series RR, FGIC Insured, Pre-Refunded, 5.00%, 7/01/35 ................................... 5,000,000 5,384,800 Series RR, XLCA Insured, Pre-Refunded, 5.00%, 7/01/30 ................................... 1,000,000 1,076,960
174 | Quarterly Statements of Investments Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)
----------------------------------------------------------------------------------------------------------------------------------- FRANKLIN VIRGINIA TAX-FREE INCOME FUND PRINCIPAL AMOUNT VALUE ----------------------------------------------------------------------------------------------------------------------------------- LONG TERM INVESTMENTS (CONTINUED) MUNICIPAL BONDS (CONTINUED) U.S. TERRITORIES (CONTINUED) PUERTO RICO (CONTINUED) Puerto Rico HFC Revenue, Sixth Portfolio, Section 8, FHA Insured, Pre-Refunded, 7.75%, 12/01/26, 7.75%, 12/01/26 ................................................................ $ 20,000 $ 20,000 Puerto Rico Municipal Finance Agency Revenue, Series A, FSA Insured, 5.00%, 8/01/27 ........ 2,580,000 2,673,447 Puerto Rico PBA Guaranteed Revenue, Government Facilities, Refunding, Series D, 5.375%, 7/01/33 .................................................... 1,315,000 1,374,504 Series D, Pre-Refunded, 5.375%, 7/01/33 ................................................. 3,685,000 3,938,086 Puerto Rico Public Finance Corp. Revenue, Commonwealth Appropriation, Series E, Pre-Refunded, 5.70%, 8/01/25 ............................................................. 1,000,000 1,046,990 --------------- 75,887,464 --------------- VIRGIN ISLANDS 3.0% Richmond Public Utility Revenue, Refunding, FSA Insured, 5.00%, 1/15/37 .................... 12,785,000 13,411,082 Virgin Islands PFAR, senior lien, Fund Loan Notes, Refunding, Series A, 5.50%, 10/01/15 ................................................................................ 1,500,000 1,540,680 10/01/18 ................................................................................ 1,500,000 1,539,315 --------------- 16,491,077 --------------- TOTAL U.S. TERRITORIES ..................................................................... 92,378,541 --------------- TOTAL LONG TERM INVESTMENTS (COST $532,924,886) ............................................ 552,199,023 --------------- SHORT TERM INVESTMENTS 1.0% MUNICIPAL BONDS 1.0% VIRGINIA 1.0% c Lexington IDA Educational Facilities Revenue, VMI Development Board Inc. Project, Refunding, Daily VRDN and Put, 3.87%, 12/01/36 ........................................... 3,350,000 3,350,000 c Roanoke IDA Hospital Revenue, Carilion Health System, Refunding, Series C-1, FSA Insured, Daily VRDN and Put, 3.87%, 7/01/27 ............................. 1,150,000 1,150,000 Series C-2, FSA Insured, Daily VRDN and Put, 3.87%, 7/01/27 ............................. 1,230,000 1,230,000 --------------- TOTAL SHORT TERM INVESTMENTS (COST $5,730,000) ............................................. 5,730,000 --------------- TOTAL INVESTMENTS (COST $538,654,886) 100.2% ............................................... 557,929,023 OTHER ASSETS, LESS LIABILITIES (0.2)% ...................................................... (1,084,610) --------------- NET ASSETS 100.0% .......................................................................... $ 556,844,413 ===============
See Selected Portfolio Abbreviations on page 176. a Upon review of the Internal Review 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 Security purchased on a when-issued or delayed delivery basis. c Variable rate demand notes (VRDNs) are tax-exempt obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. The coupon rate shown represents the rate at period end. Quarterly Statements of Investments | See Notes to Statements of Investments. | 175 Franklin Tax-Free Trust STATEMENT OF INVESTMENTS, MAY 31, 2007 (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 Security AD - Assessment District AMBAC - American Municipal Bond Assurance Corp. BAN - Bond Anticipation Note BIG - Bond Investors Guaranty Insurance Co.(acquired by MBIA in 1989 and no longer does business under this name) 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 CRDA - Community Redevelopment Authority/Agency 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 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 Security MF - Multi-Family MFH - Multi-Family Housing MFHR - Multi-Family Housing Revenue MFMR - Multi-Family Mortgage Revenue MFR - Multi-Family Revenue MTA - Metropolitan Transit Authority 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 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 176 | See Notes to Statements of Investments. | Quarterly Statements of Investments Franklin Tax-Free Trust NOTES TO STATEMENTS OF INVESTMENTS (UNAUDITED) 1. ORGANIZATION Franklin Tax-Free Trust (the Trust) is registered under the Investment Company Act of 1940, as amended, as an open-end investment company, consisting of twenty-five funds (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, which are non-diversified. 2. SECURITY VALUATION Municipal securities generally trade in the over-the-counter market rather than on a securities exchange. The Trust may utilize independent pricing services, quotations from bond dealers, and information with respect to bond and note transactions, to assist in determining a current market value for each security. The Trust's pricing services use valuation models or matrix pricing, which considers information with respect to comparable bond and note transactions, quotations from bond dealers or by reference to other securities that are considered comparable in such characteristics as rating, interest rate and maturity date, to determine current value. The Trust has procedures to determine the fair value of individual securities and other assets for which market prices are not readily available or which may not be reliably priced. Methods for valuing these securities may include: fundamental analysis, matrix pricing, discounts from market prices of similar securities, or discounts applied due to the nature and duration of restrictions on the disposition of the securities. Due to the inherent uncertainty of valuations of such securities, the fair values may differ significantly from the values that would have been used had a ready market for such investments existed. Occasionally, events occur between the time at which trading in a security is completed and the close of the NYSE that might call into question the availability (including the reliability) of the value of a portfolio security held by the fund. If such an event occurs, the securities may be valued using fair value procedures, which may include the use of independent pricing services. All security valuation procedures are approved by the Trust's Board of Trustees. Quarterly Statements of Investments | 177 Franklin Tax-Free Trust NOTES TO STATEMENTS OF INVESTMENTS (UNAUDITED) (CONTINUED) 3. INCOME TAXES At May 31, 2007, 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 ............................ $ 267,249,351 $ 987,340,635 $ 462,465,647 ========================================================== Unrealized appreciation ........................ $ 9,861,664 $ 43,444,977 $ 20,639,087 Unrealized depreciation ........................ (343,447) (1,368,701) (680,157) --------------------------------------------------------- Net unrealized appreciation (depreciation) ..... $ 9,518,217 $ 42,076,276 $ 19,958,930 =========================================================
--------------------------------------------------------- FRANKLIN FRANKLIN FRANKLIN FEDERAL CONNECTICUT DOUBLE INTERMEDIATE-TERM TAX-FREE TAX-FREE TAX-FREE INCOME FUND INCOME FUND INCOME FUND --------------------------------------------------------- Cost of investments ............................ $ 343,219,682 $ 495,100,143 $ 633,850,911 ========================================================= Unrealized appreciation ........................ $ 11,422,158 $ 17,418,736 $ 9,340,260 Unrealized depreciation ........................ (565,335) (1,199,692) (1,520,459) --------------------------------------------------------- Net unrealized appreciation (depreciation) ..... $ 10,856,823 $ 16,219,044 $ 7,819,801 =========================================================
--------------------------------------------------------- FRANKLIN FEDERAL FRANKLIN FRANKLIN LIMITED-TERM FLORIDA FLORIDA TAX-FREE INSURED TAX-FREE TAX-FREE INCOME FUND INCOME FUND INCOME FUND --------------------------------------------------------- Cost of investments ............................ $ 19,082,312 $ 152,183,663 $ 1,512,156,772 ========================================================= Unrealized appreciation ........................ $ 16,929 $ 6,934,583 $ 88,742,286 Unrealized depreciation ........................ (86,159) (22,705) (711,040) --------------------------------------------------------- Net unrealized appreciation (depreciation) ..... $ (69,230) $ 6,911,878 $ 88,031,246 =========================================================
--------------------------------------------------------- FRANKLIN FRANKLIN FRANKLIN GEORGIA HIGH YIELD INSURED TAX-FREE TAX-FREE TAX-FREE INCOME FUND INCOME FUND INCOME FUND --------------------------------------------------------- Cost of investments ............................ $ 279,183,853 $ 5,968,785,438 $ 2,104,094,521 ========================================================= Unrealized appreciation ........................ $ 11,145,598 $ 386,905,675 $ 80,165,024 Unrealized depreciation ........................ (476,810) (13,834,922) (1,290,455) --------------------------------------------------------- Net unrealized appreciation (depreciation) ..... $ 10,668,788 $ 373,070,753 $ 78,874,569 =========================================================
178 | Quarterly Statements of Investments Franklin Tax-Free Trust NOTES TO STATEMENTS OF INVESTMENTS (UNAUDITED) (CONTINUED) 3. INCOME TAXES (CONTINUED)
--------------------------------------------------------- FRANKLIN FRANKLIN FRANKLIN KENTUCKY LOUISIANA MARYLAND TAX-FREE TAX-FREE TAX-FREE INCOME FUND INCOME FUND INCOME FUND --------------------------------------------------------- Cost of investments ............................ $ 144,614,941 $ 253,946,432 $ 483,284,441 ========================================================= Unrealized appreciation ........................ $ 4,727,306 $ 7,975,248 $ 15,069,627 Unrealized depreciation ........................ (224,326) (487,334) (776,704) --------------------------------------------------------- Net unrealized appreciation (depreciation) ..... $ 4,502,980 $ 7,487,914 $ 14,292,923 =========================================================
--------------------------------------------------------- FRANKLIN FRANKLIN FRANKLIN MASSACHUSETTS MICHIGAN MINNESOTA INSURED TAX-FREE INSURED TAX-FREE INSURED TAX-FREE INCOME FUND INCOME FUND INCOME FUND --------------------------------------------------------- Cost of investments ............................ $ 510,545,861 $ 1,388,650,362 $ 587,496,707 ========================================================= Unrealized appreciation ........................ $ 22,520,982 $ 60,043,165 $ 19,156,400 Unrealized depreciation ........................ (624,170) (1,078,612) (672,429) --------------------------------------------------------- Net unrealized appreciation (depreciation) ..... $ 21,896,812 $ 58,964,553 $ 18,483,971 =========================================================
--------------------------------------------------------- FRANKLIN FRANKLIN FRANKLIN MISSOURI NEW JERSEY NORTH CAROLINA TAX-FREE TAX-FREE TAX-FREE INCOME FUND INCOME FUND INCOME FUND --------------------------------------------------------- Cost of investments ............................ $ 680,248,603 $ 1,219,874,853 $ 745,674,317 ========================================================= Unrealized appreciation ........................ $ 25,784,932 $ 52,929,686 $ 23,927,986 Unrealized depreciation ........................ (854,104) (2,278,062) (1,447,450) --------------------------------------------------------- Net unrealized appreciation (depreciation) ..... $ 24,930,828 $ 50,651,624 $ 22,480,536 =========================================================
--------------------------------------------------------- FRANKLIN FRANKLIN FRANKLIN OHIO INSURED OREGON PENNSYLVANIA TAX-FREE TAX-FREE TAX-FREE INCOME FUND INCOME FUND INCOME FUND --------------------------------------------------------- Cost of investments ............................ $ 1,148,336,279 $ 771,150,314 $ 861,522,519 ========================================================= Unrealized appreciation ........................ $ 44,733,866 $ 30,070,023 $ 34,391,197 Unrealized depreciation ........................ (1,404,637) (1,504,709) (1,055,475) --------------------------------------------------------- Net unrealized appreciation (depreciation) ..... $ 43,329,229 $ 28,565,314 $ 33,335,722 =========================================================
Quarterly Statements of Investments | 179 Franklin Tax-Free Trust NOTES TO STATEMENTS OF INVESTMENTS (UNAUDITED) (CONTINUED) 3. INCOME TAXES (CONTINUED) ---------------- FRANKLIN VIRGINIA TAX-FREE INCOME FUND ---------------- Cost of investments ............................ $ 538,613,027 ================ Unrealized appreciation ........................ $ 20,362,383 Unrealized depreciation ........................ (1,046,387) ---------------- Net unrealized appreciation (depreciation) ..... $ 19,315,996 ================ For information on the Funds' policy regarding other significant accounting policies, please refer to the Funds' most recent semiannual or annual shareholder report. 180 | 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 July 26, 2007 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By /S/JIMMY D. GAMBILL ------------------- Jimmy D. Gambill Chief Executive Officer - Finance and Administration Date July 26, 2007 By /S/GALEN G. VETTER ----------------- Galen G. Vetter Chief Financial Officer Date July 26, 2007 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. 7/26/2007 /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. 7/26/2007 /S/GALEN G. VETTER Galen G. Vetter Chief Financial Officer