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NAME OF REGISTRANT:
Franklin Tax-Free Trust
File No. 811-04149

EXHIBIT ITEM No. 77D(g): Policies with respect to securities
investments


The Prospectus is amended as follows:

II. On page 2 under the "Goals and Strategies - Main Investment
Strategies" section, the second paragraph is revised as follows:

Franklin Florida Insured Tax-Free Income Fund, Franklin Insured
Tax-Free Income Fund, Franklin Massachusetts Insured Tax-Free
Income Fund, Franklin Michigan Insured Tax-Free Income Fund,
Franklin Minnesota Insured Tax-Free Income Fund and Franklin Ohio
Insured Tax-Free Income Fund

As a nonfundamental policy, under normal market conditions, each
Fund invests at least 80% of its net assets in insured municipal
securities. Shareholders will be given at least 60 days' advance
notice of any change to this 80% policy. Insured municipal
securities are covered by insurance policies that guarantee the
timely payment of principal and interest. Generally, the Fund
buys insured municipal securities only if they are covered by
policies issued by AAA-rated municipal bond insurers. Currently,
there are seven municipal bond insurers with an AAA rating. Under
unusual market conditions affecting the ratings of bond insurance
companies, the Fund may purchase insured securities covered by
policies issued by municipal bond insurers rated below AAA but
not below A.  The Fund pays insurance premiums either directly or
indirectly, which increases the credit safety of its insured
investments, but decreases its yield.


        Please keep this supplement for future reference.