N-CSR 1 primary-document.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
FORM N-CSR
 
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
 
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: 2/28/22
 
Item 1. Reports to Stockholders.
 
a.)
 
The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)


b.)
 
A copy of the notice transmitted to shareholders in reliance on Rule 30e-3 under the 1940 Act that contains disclosures specified by paragraph (c)(3) of that rule is included in the Annual Report.
Not Applicable
.
 
ANNUAL
REPORT
AND
SHAREHOLDER
LETTER
Franklin
Tax-Free
Trust
February
28,
2022
Sign
up
for
electronic
delivery
at
franklintempleton.com/edelivery
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Franklin
High
Yield
Tax-Free
Income
Fund
Franklin
Massachusetts
Tax-Free
Income
Fund
Franklin
Municipal
Green
Bond
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
Not
FDIC
Insured
May
Lose
Value
No
Bank
Guarantee
franklintempleton.com
Annual
Report
1
SHAREHOLDER
LETTER
Dear
Shareholder:
During
the
12
months
ended
February
28,
2022,
the
U.S.
economy
continued
to
recover
from
the
COVID-19
pandemic
amid
declining
unemployment,
growing
wages
and
business
confidence.
Growth
persisted
in
2021’s
second
half
as
the
reopening
of
businesses,
widespread
COVID-19
vaccinations
and
federal
assistance
programs
continued
to
boost
consumer
spending.
Inflation
increased
during
the
reporting
period
due
to
increased
demand
for
goods
amid
supply-chain
bottlenecks.
Investors
became
concerned
that
new,
swiftly
spreading
COVID-19
variants
could
hinder
the
economic
recovery,
and
although
growth
slowed
in
2021’s
third
quarter,
it
accelerated
in
the
fourth
quarter.
During
the
reporting
period,
the
U.S.
Federal
Reserve,
in
its
efforts
to
encourage
continued
U.S.
economic
activity,
held
the
federal
funds
rate
unchanged
at
0.25%,
and
it
continued
quantitative
easing
measures
to
bolster
credit
markets.
However,
the
Federal
Reserve
began
decreasing
its
asset
purchases
in
November,
accelerated
its
tapering
in
December,
and
indicated
in
January
that
conditions
would
soon
be
appropriate
to
raise
the
federal
funds
rate
given
employment
gains
and
persistent
high
inflation,
which
should
result
in
higher
short-term
rates.
During
the
12-month
period,
municipal
bonds,
as
measured
by
the
Bloomberg
Municipal
Bond
Index,
posted
a
-0.66%
cumulative
total
return.
1
After
benefiting
from
strong
demand
earlier
in
the
period,
by
the
end
of
2021
and
into
2022,
municipal
bond
valuations
declined
amid
increased
U.S.
Treasury
bond
volatility
influenced
by
anticipation
of
tighter
monetary
policy.
However,
municipal
bond
issuers
benefited
from
direct
fiscal
support
from
the
U.S.
government
and
from
the
reopening
of
businesses,
leading
to
increased
consumer
spending
despite
the
ongoing
uncertainty
surrounding
COVID-19.
Franklin
Tax-Free
Trust’s
annual
report
includes
more
detail
about
municipal
bond
market
conditions
and
a
discussion
from
the
portfolio
managers.
In
addition,
on
our
website,
franklintempleton.com,
you
can
find
updated
commentary
by
our
municipal
bond
team.
Municipal
bonds
provide
tax-free
income
and
diversification
from
equities.
Despite
periods
of
volatility,
municipal
bonds
historically
have
had
a
solid
long-term
record
of
performance,
driven
mostly
by
their
compounding
tax-free
income
component.
As
you
know,
all
securities
markets
fluctuate
in
value,
as
do
mutual
fund
share
prices.
As
always,
we
recommend
investors
consult
their
financial
professionals
to
help
them
make
the
best
decisions
for
the
long
term.
In
a
constantly
changing
market
environment,
we
remain
committed
to
our
disciplined
strategy
as
we
manage
the
Funds,
keeping
in
mind
the
trust
you
have
placed
in
us.
We
appreciate
your
confidence
in
us
and
encourage
you
to
contact
us
or
your
financial
professional
when
you
have
questions
about
your
Franklin
tax-free
investment.
Sincerely,
Rupert
H.
Johnson,
Jr.
Chairman
Franklin
Tax-Free
Trust
Ben
Barber
Senior
Vice
President
Director
of
Municipal
Bonds
This
letter
reflects
our
analysis
and
opinions
as
of
February
28,
2022,
unless
otherwise
indicated.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
fund.
Statements
of
fact
are
from
sources
considered
reliable.
1.
Source:
Morningstar.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
franklintempleton.com
Annual
Report
2
Contents
Annual
Report
Municipal
Bond
Market
Overview
3
Investment
Strategy
and
Manager’s
Discussion
4
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
5
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
10
Franklin
High
Yield
Tax-Free
Income
Fund
15
Franklin
Massachusetts
Tax-Free
Income
Fund
20
Franklin
Municipal
Green
Bond
Fund
26
Franklin
New
Jersey
Tax-Free
Income
Fund
32
Financial
Highlights
and
Statements
of
Investments
38
Financial
Statements
168
Notes
to
Financial
Statements
177
Report
of
Independent
Registered
Public
Accounting
Firm
197
Tax
Information
198
Board
Members
and
Officers
199
Shareholder
Information
204
Visit
franklintempleton.com
for
fund
updates,
to
access
your
account,
or
to
find
helpful
financial
planning
tools.
3
franklintempleton.com
Annual
Report
ANNUAL
REPORT
Municipal
Bond
Market
Overview
During
the
12
months
ending
February
28,
2022,
COVID-19
and
its
variants
continued
to
be
the
main
driver
of
market
forces.
First,
the
Delta
variant
during
the
summer
and
then,
the
Omicron
variant
toward
the
end
of
2021,
caused
COVID-19
daily
new
case
rates
to
reach
new
highs.
Although
adjusting
some
social
distancing
requirements,
health
authorities
broadly
resisted
returning
to
the
general
lockdowns
seen
at
the
beginning
of
the
pandemic,
thereby
tempering
the
overall
economic
blow
to
local
economies.
The
U.S.
Federal
Reserve
announced
its
intention
to
tighten
monetary
policy
beginning
in
2022,
which
caused
U.S.
Treasury
(UST)
yields
to
move
higher.
Strong
demand
pushed
ratios
of
30-year
municipal
bonds
(munis)
versus
UST
yields
in
June
2021
to
all-time
lows.
At
the
end
of
2021
and
into
2022,
munis
performed
poorly
after
fund
flows
turned
negative
as
investors
retreated
from
the
muni
market
amid
increased
UST
volatility.
Muni
issuer
fundamentals
remained
strong
as
they
have
benefited
from
fiscal
support
and
the
reopening
of
businesses,
leading
to
increased
consumer
spending
despite
the
ongoing
uncertainty
surrounding
COVID-19.
For
the
12-month
period,
U.S.
fixed
income
sectors
underperformed
relative
to
equities,
as
measured
by
the
Standard
&
Poor’s
®
500
Index,
which
posted
a
+16.39%
total
return
for
the
period.
1
Investment-grade
munis,
as
measured
by
the
Bloomberg
Municipal
Bond
Index,
posted
a
-0.66%
total
return.
1
In
comparison,
USTs,
as
measured
by
the
Bloomberg
U.S.
Treasury
Index,
posted
a
-2.11%
total
return,
and
investment-grade
corporate
bonds,
as
measured
by
the
Bloomberg
U.S.
Corporate
Bond
Index,
posted
a
-3.40%
total
return.
1
The
foregoing
information
reflects
our
analysis
and
opinions
as
of
February
28,
2022.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
fund.
Statements
of
fact
are
from
sources
considered
reliable.
1.
Source:
Morningstar.
Treasuries,
if
held
to
maturity,
offer
a
fixed
rate
of
return
and
a
fixed
principal
value;
their
interest
payments
and
principal
are
guaranteed.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
4
franklintempleton.com
Annual
Report
Investment
Strategy
and
Manager’s
Discussion
Investment
Strategy
We
select
securities
that
we
believe
will
provide
the
best
balance
between
risk
and
return
within
each
Fund’s
range
of
allowable
investments
and
typically
use
a
buy-and-
hold
strategy.
This
means
we
generally
hold
securities
in
each
Fund’s
portfolio
for
income
purposes,
rather
than
trading
securities
for
capital
gains,
although
we
may
sell
a
security
at
any
time
if
we
believe
it
could
help
a
fund
meet
its
goal.
When
selecting
securities
for
High
Yield
Tax-Free
Income
Fund’s
portfolio,
we
may
consider
existing
market
conditions
in
our
security
selection
process,
the
availability
of
lower-rated
securities,
and
whether
the
difference
in
yields
between
higher
and
lower-rated
securities
justifies
the
higher
risk
of
lower-rated
securities.
Manager’s
Discussion
Due
to
the
positive
sloping
municipal
yield
curve,
we
found
value
in
higher
quality
securities
in
the
15-
to
30-year
maturity
range
for
the
long-term
funds,
10
to
15
years
for
the
intermediate-term
fund,
and
five
years
or
less
for
the
limited-
term
fund,
which
allowed
us
to
achieve
our
objective
of
maximizing
income
for
our
investors.
Typically,
when
interest
rates
fall,
our
turnover
declines
as
we
maintain
exposure
to
securities
that
are
producing
income
that
exceeds
their
replacement
value
in
the
market.
This
excess
income
supports
higher
distribution
rates
and
reinvestment
rates
for
those
investors
taking
advantage
of
tax-free
compounding.
Our
turnover
increases
when
rates
rise,
as
opportunities
to
purchase
securities
that
have
the
potential
to
increase
income
in
the
portfolios
become
available.
We
believe
our
consistent,
disciplined
strategy
can
help
our
investors
achieve
high,
tax-free
income
over
the
long
term.
We
invite
you
to
read
your
Fund
report
for
more
detailed
performance
and
portfolio
information.
Thank
you
for
your
participation
in
Franklin
Tax-Free
Trust.
We
look
forward
to
serving
your
future
investment
needs.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
February
28,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
5
franklintempleton.com
Annual
Report
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
This
annual
report
for
Franklin
Federal
Intermediate-
Term
Tax-Free
Income
Fund
covers
the
fiscal
year
ended
February
28,
2022
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
investors
with
as
high
a
level
of
income
exempt
from
federal
income
taxes
as
is
consistent
with
prudent
investment
management
and
the
preservation
of
shareholders’
capital
by
normally
investing
at
least
80%
of
its
total
assets
in
securities
that
pay
interest
free
from
such
taxes.
1
The
Fund
maintains
a
dollar-weighted
average
portfolio
maturity
(the
time
in
which
the
debt
must
be
repaid)
of
three
to
10
years.
Performance
Overview
The
Fund’s
Class
A
share
price,
as
measured
by
net
asset
value,
decreased
from
$12.22
on
February
28,
2021,
to
$11.82
on
February
28,
2022.
The
Fund’s
Class
A
shares
paid
dividends
totaling
23.3643
cents
per
share
for
the
reporting
period.
2
The
Performance
Summary
beginning
on
page
6
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
1.78%,
based
on
an
annualization
of
the
1.7911
cents
per
share
February
dividend
and
the
maximum
offering
price
of
$12.09
on
February
28,
2022.
An
investor
in
the
2022
maximum
federal
income
tax
bracket
of
40.80%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
3.01%
from
a
taxable
investment
to
match
the
Fund’s
Class
A
tax-free
distribution
rate.
For
other
performance
data,
please
see
the
Performance
Summary.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Manager’s
Discussion
We
used
various
investment
strategies
during
the
12
months
under
review
as
we
sought
to
maximize
tax-free
income
for
shareholders.
Please
read
the
Investment
Strategy
and
Manager’s
Discussion
on
page
4
for
more
information.
Thank
you
for
your
continued
participation
in
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund.
We
look
forward
to
serving
your
future
investment
needs.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
February
28,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Portfolio
Composition
2/28/22
%
of
Total
Investments*
Utilities
19.82%
Transportation
14.55%
Health
Care
12.95%
State
General
Obligation
9.32%
Local
7.33%
Special
Tax
6.94%
Education
6.73%
Refunded
5.80%
Housing
5.23%
Industrial
Dev.
Revenue
and
Pollution
Control
5.13%
Lease
4.98%
Other
Revenue
Bonds
1.22%
*
Does
not
include
cash
and
cash
equivalents.
1.
Dividends
are
generally
subject
to
state
and
local
taxes,
if
any.
For
investors
subject
to
alternative
minimum
tax,
a
small
portion
of
Fund
dividends
may
be
taxable.
Distribu-
tions
of
capital
gains
are
generally
taxable.
To
avoid
imposition
of
28%
backup
withholding
on
all
Fund
distributions
and
redemption
proceeds,
U.S.
investors
must
be
properly
certified
on
Form
W-9
and
non-U.S.
investors
on
Form
W-8BEN.
2.
The
distribution
amount
is
the
sum
of
all
net
investment
income
distributions
for
the
period
shown.
Assumes
shares
were
purchased
and
held
for
the
entire
accrual
period.
Since
dividends
accrual
daily,
your
actual
distributions
will
vary
depending
on
the
date
you
purchased
your
shares
and
any
account
activity.
All
fund
distributions
will
vary
depending
upon
current
market
conditions,
and
past
distributions
are
not
indicative
of
future
trends.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
43
.
Performance
Summary
as
of
February
28,
2022
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
6
franklintempleton.com
Annual
Report
The
performance
tables
and
graphs
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
2
/
28
/2
2
1
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
2.25%
and
the
minimum
is
0%.
Class
A:
2.25%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
2
Average
Annual
Total
Return
3
–
A
4
1-Year
-1.42%
-3.64%
5-Year
+9.57%
+1.38%
10-Year
+22.05%
+1.78%
Advisor
1-Year
-1.17%
-1.17%
5-Year
+10.69%
+2.05%
10-Year
+23.81%
+2.16%
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
(with
fee
waiver)
(without
fee
waiver)
(with
fee
waiver)
(without
fee
waiver)
A
1.78%
3.01%
1.23%
1.09%
2.08%
1.84%
Advisor
2.05%
3.46%
1.51%
1.36%
2.55%
2.30%
See
page
8
for
Performance
Summary
footnotes.
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
Performance
Summary
7
franklintempleton.com
Annual
Report
See
page
8
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
Total
return
represents
the
change
in
value
of
an
investment
over
the
periods
shown.
It
includes
any
applicable
maximum
sales
charge,
Fund
expenses,
account
fees
and
reinvested
distributions.
The
unmanaged
index
includes
reinvestment
of
any
income
or
distributions.
It
differs
from
the
Fund
in
composition
and
does
not
pay
management
fees
or
expenses.
One
cannot
invest
directly
in
an
index.
Class
A
(3/1/12–2/28/22)
Advisor
Class
(3/1/12–2/28/22)
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
Performance
Summary
8
franklintempleton.com
Annual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
Because
municipal
bonds
are
sensitive
to
interest
rate
movements,
the
Fund’s
yield
and
share
price
will
fluctuate
with
market
conditions.
Bond
prices
generally
move
in
the
opposite
direction
of
interest
rates.
Thus,
as
prices
of
bonds
in
the
Fund
adjust
to
a
rise
in
interest
rates,
the
Fund’s
share
price
may
decline.
Changes
in
the
credit
rating
of
a
bond,
or
in
the
credit
rating
or
financial
strength
of
a
bond’s
issuer,
insurer
or
guarantor,
may
affect
the
bond’s
value.
The
Fund
may
invest
a
significant
part
of
its
assets
in
municipal
securities
that
finance
similar
types
of
projects,
such
as
utilities,
hospitals,
higher
education
and
transportation.
A
change
that
affects
one
project
would
likely
affect
all
similar
projects,
thereby
increasing
market
risk.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
im-
posed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
1.
The
Fund
has
an
expense
reduction
contractually
guaranteed
through
6/30/22.
Fund
investment
results
reflect
the
expense
reduction;
without
this
reduction,
the
results
would
have
been
lower.
2.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
3.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
4.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
February
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
2/28/22.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
2022
maximum
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
Source:
Morningstar.
The
Bloomberg
1-15
Year
Municipal
Bond
Index
is
a
subset
of
the
Municipal
Bond
Index,
which
is
a
market
value-weighted
index
of
tax-exempt,
investment-grade
municipal
bonds
with
maturities
of
one
year
or
more.
9.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(3/1/21–2/28/22)
Share
Class
Net
Investment
Income
A
$0.233643
A1
$0.252203
C
$0.184182
R6
$0.270958
Advisor
$0.264495
Total
Annual
Operating
Expenses
9
Share
Class
With
Fee
Waiver
Without
Fee
Waiver
A
0.71%
0.80%
Advisor
0.46%
0.55%
Your
Fund’s
Expenses
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
9
franklintempleton.com
Annual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
181/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
9/1/21
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$965.90
$3.43
$1,021.30
$3.53
0.70%
A1
$1,000
$966.60
$2.71
$1,022.04
$2.78
0.56%
C
$1,000
$964.10
$5.38
$1,019.32
$5.53
1.10%
R6
$1,000
$967.50
$1.95
$1,022.81
$2.01
0.40%
Advisor
$1,000
$967.20
$2.22
$1,022.54
$2.28
0.45%
10
franklintempleton.com
Annual
Report
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
This
a
nnual
report
for
Franklin
Federal
Limited-Term
Tax-
Free
Income
Fund
covers
the
fiscal
year
ended
February
28,
2022
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
investors
with
as
high
a
level
of
income
exempt
from
federal
income
taxes
as
is
consistent
with
prudent
investment
management
and
the
preservation
of
shareholders’
capital
by
normally
investing
at
least
80%
of
its
total
assets
in
securities
that
pay
interest
free
from
such
taxes.
1
The
Fund
maintains
a
dollar-weighted
average
portfolio
maturity
(the
time
in
which
the
debt
must
be
repaid)
of
five
years
or
less.
Performance
Overview
The
Fund’s
Class
A
share
price,
as
measured
by
net
asset
value,
decreased
from
$10.56
on
February
28,
2021,
to
$10.34
on
February
28,
2022.
The
Fund’s
Class
A
shares
paid
dividends
totaling
7.4495
cents
per
share
for
the
reporting
period.
2
The
Performance
Summary
beginning
on
page
11
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
0.77%
based
on
an
annualization
of
the
0.6764
cents
per
share
February
dividend
and
the
maximum
offering
price
of
$10.58
on
February
28,
2022.
An
investor
in
the
2022
maximum
federal
income
tax
bracket
of
40.80%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
1.30%
from
a
taxable
investment
to
match
the
Fund’s
Class
A
tax-free
distribution
rate.
For
other
performance
data,
please
see
the
Performance
Summary.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Manager’s
Discussion
We
used
various
investment
strategies
during
the
12
months
under
review
as
we
sought
to
maximize
tax-free
income
for
shareholders.
Please
read
the
Investment
Strategy
and
Manager’s
Discussion
on
page
4
for
more
information.
Thank
you
for
your
continued
participation
in
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund.
We
look
forward
to
serving
your
future
investment
needs.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
February
28,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Portfolio
Composition
2/28/22
%
of
Total
Investments*
Industrial
Dev.
Revenue
and
Pollution
Control
18.21%
Local
13.68%
State
General
Obligation
9.47%
Health
Care
8.88%
Education
8.74%
Refunded
8.61%
Lease
7.81%
Utilities
6.66%
Transportation
5.85%
Special
Tax
5.54%
Housing
4.92%
Other
Revenue
Bonds
1.63%
*
Does
not
include
cash
and
cash
equivalents.
1.
Dividends
are
generally
subject
to
state
and
local
taxes,
if
any.
For
investors
subject
to
alternative
minimum
tax,
a
small
portion
of
Fund
dividends
may
be
taxable.
Distribu-
tions
of
capital
gains
are
generally
taxable.
To
avoid
imposition
of
28%
backup
withholding
on
all
Fund
distributions
and
redemption
proceeds,
U.S.
investors
must
be
properly
certified
on
Form
W-9
and
non-U.S.
investors
on
Form
W-8BEN.
2.
The
distribution
amount
is
the
sum
of
all
net
investment
income
distributions
for
the
period
shown.
Assumes
shares
were
purchased
and
held
for
the
entire
accrual
period.
Since
dividends
accrual
daily,
your
actual
distributions
will
vary
depending
on
the
date
you
purchased
your
shares
and
any
account
activity.
All
fund
distributions
will
vary
depending
upon
current
market
conditions,
and
past
distributions
are
not
indicative
of
future
trends.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
71
.
Performance
Summary
as
of
February
28,
2022
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
11
franklintempleton.com
Annual
Report
The
performance
tables
and
graphs
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
2
/
28
/2
2
1
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
2.25%
and
the
minimum
is
0%.
Class
A:
2.25%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
2
Average
Annual
Total
Return
3
–
A
4
1-Year
-1.39%
-3.61%
5-Year
5.24%
0.57%
10-Year
8.93%
0.63%
Advisor
1-Year
-1.05%
-1.05%
5-Year
6.50%
1.27%
10-Year
11.13%
1.06%
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
(with
fee
waiver)
(without
fee
waiver)
(with
fee
waiver)
(without
fee
waiver)
A
0.77%
1.30%
0.78%
0.58%
1.32%
0.98%
Advisor
1.01%
1.71%
1.05%
0.84%
1.77%
1.42%
See
page
13
for
Performance
Summary
footnotes.
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Performance
Summary
12
franklintempleton.com
Annual
Report
See
page
13
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
Total
return
represents
the
change
in
value
of
an
investment
over
the
periods
shown.
It
includes
any
applicable
maximum
sales
charge,
Fund
expenses,
account
fees
and
reinvested
distributions.
The
unmanaged
index
includes
reinvestment
of
any
income
or
distributions.
It
differs
from
the
Fund
in
composition
and
does
not
pay
management
fees
or
expenses.
One
cannot
invest
directly
in
an
index.
Class
A
(3/1/12–2/28/22)
Advisor
Class
(3/1/12–2/28/22)
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Performance
Summary
13
franklintempleton.com
Annual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
Because
municipal
bonds
are
sensitive
to
interest
rate
movements,
the
Fund’s
yield
and
share
price
will
fluctuate
with
market
conditions.
Bond
prices
generally
move
in
the
opposite
direction
of
interest
rates.
Thus,
as
prices
of
bonds
in
the
Fund
adjust
to
a
rise
in
interest
rates,
the
Fund’s
share
price
may
decline.
Changes
in
the
credit
rating
of
a
bond,
or
in
the
credit
rating
or
financial
strength
of
a
bond’s
issuer,
insurer
or
guarantor,
may
affect
the
bond’s
value.
The
Fund
may
invest
a
significant
part
of
its
assets
in
municipal
securities
that
finance
similar
types
of
projects,
such
as
utilities,
hospitals,
higher
education
and
transportation.
A
change
that
affects
one
project
would
likely
affect
all
similar
projects,
thereby
increasing
market
risk.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
im-
posed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
1.
The
Fund
has
an
expense
reduction
contractually
guaranteed
through
6/30/22.
Fund
investment
results
reflect
the
expense
reduction;
without
this
reduction,
the
results
would
have
been
lower.
2.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
3.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
4.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
February
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
2/28/22.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
2022
maximum
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
Source:
Morningstar.
The
Bloomberg
1-5
Year
Municipal
Bond
Index
is
a
subset
of
the
Municipal
Bond
Index,
which
is
a
market
value-weighted
index
of
tax-exempt,
invest-
ment-grade
municipal
bonds
with
maturities
of
one
year
or
more.
9.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(3/1/21–2/28/22)
Share
Class
Net
Investment
Income
A
$0.074495
A1
$0.085120
R6
$0.103927
Advisor
$0.101063
Total
Annual
Operating
Expenses
9
Share
Class
With
Fee
Waiver
Without
Fee
Waiver
A
0.66%
0.82%
Advisor
0.41%
0.57%
Your
Fund’s
Expenses
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
14
franklintempleton.com
Annual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
181/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
9/1/21
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
A
Net
Annualized
Expense
Ratio
2
A
$1,000
$977.90
$3.17
$1,021.59
$3.24
0.65%
A1
$1,000
$979.30
$2.68
$1,022.09
$2.74
0.55%
R6
$1,000
$979.20
$1.81
$1,022.96
$1.85
0.37%
Advisor
$1,000
$980.00
$1.94
$1,022.83
$1.99
0.40%
15
franklintempleton.com
Annual
Report
Franklin
High
Yield
Tax-Free
Income
Fund
This
annual
report
for
Franklin
High
Yield
Tax-Free
Income
Fund
covers
the
fiscal
year
ended
February
28,
2022
.
Your
Fund’s
Goals
and
Main
Investments
The
Fund
seeks
to
provide
investors
with
a
high
current
yield
exempt
from
federal
income
taxes
by
normally
investing
at
least
80%
of
its
net
assets
in
securities
that
pay
interest
free
from
such
taxes.
1
Its
secondary
goal
is
capital
appreciation
to
the
extent
possible
and
consistent
with
the
Fund’s
principal
investment
goal.
Performance
Overview
The
Fund’s
Class
A
share
price,
as
measured
by
net
asset
value,
decreased
from
$10.29
on
February
28,
2021,
to
$10.05
on
February
28,
2022.
The
Fund’s
Class
A
shares
paid
dividends
totaling
35.9895
cents
per
share
for
the
reporting
period.
2
The
Performance
Summary
beginning
on
page
16
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
3.15%,
based
on
an
annualization
of
the
2.7422
cents
per
share
February
dividend
and
the
maximum
offering
price
of
$10.44
on
February
28,
2022.
An
investor
in
the
2022
maximum
federal
income
tax
bracket
of
40.80%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
5.32%
from
a
taxable
investment
to
match
the
Fund’s
Class
A
tax-free
distribution
rate.
For
other
performance
data,
please
see
the
Performance
Summary.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Manager’s
Discussion
We
used
various
investment
strategies
during
the
12
months
under
review
as
we
sought
to
maximize
tax-free
income
for
shareholders.
Please
read
the
Investment
Strategy
and
Manager’s
Discussion
on
page
4
for
more
information.
The
Fund
continued
to
seek
high,
current,
tax-free
income
for
its
shareholders
during
the
reporting
period.
Consistent
with
our
strategy,
the
Fund
did
not
use
leverage
or
credit
derivatives
to
boost
short-term
returns,
and
we
were
careful
to
not
overexpose
the
portfolio
to
any
one
credit
sector.
Thank
you
for
your
continued
participation
in
Franklin
High
Yield
Tax-Free
Income
Fund.
We
look
forward
to
serving
your
future
investment
needs.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
February
28,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Portfolio
Composition
2/28/22
%
of
Total
Investments*
Special
Tax
20.61%
Industrial
Dev.
Revenue
and
Pollution
Control
13.91%
Health
Care
12.82%
Transportation
10.67%
Refunded
9.02%
Housing
8.48%
Utilities
6.74%
Local
6.27%
Education
5.25%
Lease
2.88%
State
General
Obligation
2.21%
Other
Revenue
Bonds
1.14%
*
Does
not
include
cash
and
cash
equivalents.
1.
Dividends
are
generally
subject
to
state
and
local
taxes,
if
any.
For
investors
subject
to
alternative
minimum
tax,
a
small
portion
of
Fund
dividends
may
be
taxable.
Distribu-
tions
of
capital
gains
are
generally
taxable.
To
avoid
imposition
of
28%
backup
withholding
on
all
Fund
distributions
and
redemption
proceeds,
U.S.
investors
must
be
properly
certified
on
Form
W-9
and
non-U.S.
investors
on
Form
W-8BEN.
2.
The
distribution
amount
is
the
sum
of
all
net
investment
income
distributions
for
the
period
shown.
Assumes
shares
were
purchased
and
held
for
the
entire
accrual
period.
Since
dividends
accrual
daily,
your
actual
distributions
will
vary
depending
on
the
date
you
purchased
your
shares
and
any
account
activity.
All
fund
distributions
will
vary
depending
upon
current
market
conditions,
and
past
distributions
are
not
indicative
of
future
trends.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
90
.
Performance
Summary
as
of
February
28,
2022
Franklin
High
Yield
Tax-Free
Income
Fund
16
franklintempleton.com
Annual
Report
The
performance
tables
and
graphs
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
2
/
28
/2
2
1
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
2
Average
Annual
Total
Return
3
–
A
4,5
1-Year
+1.07%
-2.72%
5-Year
+19.77%
+2.88%
10-Year
+44.00%
+3.32%
Advisor
1-Year
+1.22%
+1.22%
5-Year
+20.69%
+3.83%
10-Year
+45.78%
+3.84%
30-Day
Standardized
Yield
8
Taxable
Equivalent
30-Day
Standardized
Yield
7
Share
Class
Distribution
Rate
6
Taxable
Equivalent
Distribution
Rate
7
(with
fee
waiver)
(without
fee
waiver)
(with
fee
waiver)
(without
fee
waiver)
A
3.15%
5.32%
2.57%
2.56%
4.34%
4.32%
Advisor
3.49%
5.90%
2.91%
2.91%
4.92%
4.92%
See
page
18
for
Performance
Summary
footnotes.
Franklin
High
Yield
Tax-Free
Income
Fund
Performance
Summary
17
franklintempleton.com
Annual
Report
See
page
18
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
Total
return
represents
the
change
in
value
of
an
investment
over
the
periods
shown.
It
includes
any
applicable
maximum
sales
charge,
Fund
expenses,
account
fees
and
reinvested
distributions.
The
unmanaged
index
includes
reinvestment
of
any
income
or
distributions.
It
differs
from
the
Fund
in
composition
and
does
not
pay
management
fees
or
expenses.
One
cannot
invest
directly
in
an
index.
Class
A
(3/1/12–2/28/22)
Advisor
Class
(3/1/12–2/28/22)
Franklin
High
Yield
Tax-Free
Income
Fund
Performance
Summary
18
franklintempleton.com
Annual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
Because
municipal
bonds
are
sensitive
to
interest
rate
movements,
the
Fund’s
yield
and
share
price
will
fluctuate
with
market
conditions.
Bond
prices
generally
move
in
the
opposite
direction
of
interest
rates.
Thus,
as
prices
of
bonds
in
the
Fund
adjust
to
a
rise
in
interest
rates,
the
Fund’s
share
price
may
decline.
Investments
in
lower
rated
bonds
include
higher
risk
of
default
and
loss
of
principal.
Changes
in
the
credit
rating
of
a
bond,
or
in
the
credit
rating
or
financial
strength
of
a
bond’s
issuer,
insurer
or
guarantor,
may
affect
the
bond’s
value.
The
Fund
may
invest
a
significant
part
of
its
assets
in
municipal
securities
that
finance
similar
types
of
projects,
such
as
utilities,
hospitals,
higher
education
and
transportation.
A
change
that
affects
one
project
would
likely
affect
all
similar
projects,
thereby
increasing
market
risk.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
im-
posed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
1.
The
Fund
has
a
fee
waiver
associated
with
any
investment
it
makes
in
a
Franklin
Templeton
money
fund
and/or
other
Franklin
Templeton
fund,
contractually
guaranteed
through
6/30/22.
Fund
investment
results
reflect
the
fee
waiver;
without
this
waiver,
the
results
would
have
been
lower.
2.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
3.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
4.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
5.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
6.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
February
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
2/28/22.
7.
Taxable
equivalent
distribution
rate
and
yield
assume
the
2022
maximum
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
8.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
9.
Source:
Morningstar.
The
Bloomberg
Municipal
Bond
Index
is
a
market
value-weighted
index
of
tax-exempt,
investment-grade
bonds
with
maturities
of
one
year
or
more.
10.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(3/1/21–2/28/22)
Share
Class
Net
Investment
Income
A
$0.359895
A1
$0.375672
C
$0.316371
R6
$0.390326
Advisor
$0.386152
Total
Annual
Operating
Expenses
10
Share
Class
With
Fee
Waiver
Without
Fee
Waiver
A
0.79%
0.79%
Advisor
0.54%
0.54%
Your
Fund’s
Expenses
Franklin
High
Yield
Tax-Free
Income
Fund
19
franklintempleton.com
Annual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
181/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
9/1/21
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$966.10
$3.92
$1,020.81
$4.03
0.80%
A1
$1,000
$966.80
$3.19
$1,021.55
$3.28
0.65%
C
$1,000
$963.00
$5.81
$1,018.88
$5.97
1.19%
R6
$1,000
$966.70
$2.53
$1,022.22
$2.60
0.52%
Advisor
$1,000
$966.50
$2.69
$1,022.06
$2.76
0.55%
20
franklintempleton.com
Annual
Report
Franklin
Massachusetts
Tax-Free
Income
Fund
This
annual
report
for
Franklin
Massachusetts
Tax-Free
Income
Fund
covers
the
fiscal
year
ended
February
28,
2022
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
investors
with
as
high
a
level
of
income
exempt
from
federal
and
Massachusetts
personal
income
taxes
as
is
consistent
with
prudent
investment
management
and
the
preservation
of
shareholders’
capital
by
normally
investing
at
least
80%
of
its
total
assets
in
securities
that
pay
interest
free
from
such
taxes.
1
Performance
Overview
The
Fund’s
Class
A
share
price,
as
measured
by
net
asset
value,
decreased
from
$11.84
on
February
28,
2021,
to
$11.48
on
February
28,
2022.
The
Fund’s
Class
A
shares
paid
dividends
totaling
22.0928
cents
per
share
for
the
reporting
period.
2
The
Performance
Summary
beginning
on
page
22
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
1.63%,
based
on
an
annualization
of
the
1.6201
cents
per
share
February
dividend
and
the
maximum
offering
price
of
$11.93
on
February
28,
2022.
An
investor
in
the
2022
maximum
combined
effective
federal
and
Massachusetts
personal
income
tax
bracket
of
45.80%
(including
3.8%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
3.01%
from
a
taxable
investment
to
match
the
Fund’s
Class
A
tax-free
distribution
rate.
For
other
performance
data,
please
see
the
Performance
Summary.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Commonwealth
Update
During
the
12-month
period,
Massachusetts’
economic
recovery
continued
as
the
commonwealth
fully
reopened
in
the
second
quarter
of
2021
amid
widespread
COVID-19
vaccinations.
The
commonwealth’s
key
education
and
health
services
sectors
saw
increased
signs
of
recovery.
Massachusetts’
unemployment
rate
began
the
period
at
6.7%
and
ended
at
4.7%,
compared
with
the
3.8%
national
rate.
As
Massachusetts’
economy
recovered,
revenue
collections
increased,
particularly
income
and
sales
taxes,
which
provide
most
of
the
commonwealth’s
funding.
The
commonwealth’s
fiscal
year
2021
revenue
growth
exceeded
projections.
Massachusetts’
net
tax-supported
debt
was
$6,240
per
capita
and
7.8%
of
personal
income,
well
above
the
$1,039
and
1.9%
national
medians,
respectively.
3
Federal
aid
and
alternate
liquidity
sources
have
been
key
credit
stabilizing
factors.
Independent
credit
rating
agency
Moody’s
Investors
Service
maintained
Massachusetts’
general
obligations
bonds’
Aa1
rating
with
a
stable
outlook.
4
The
rating
reflected
Moody’s
view
of
the
commonwealth’s
robust
economic
base,
strong
financial
management,
adequate
reserves,
access
to
alternate
sources
of
liquidity
and
a
highly
educated
workforce
with
high-income
levels
that
help
service
the
commonwealth’s
higher-than-average
long-
term
debt
burden.
According
to
Moody’s,
credit
challenges
Portfolio
Composition
2/28/22
%
of
Total
Investments*
Education
29.95%
Health
Care
13.25%
Transportation
12.80%
Special
Tax
9.63%
Local
8.77%
Housing
7.20%
Utilities
6.24%
State
General
Obligation
4.77%
Refunded
3.71%
Other
Revenue
Bonds
2.40%
Lease
1.13%
Industrial
Dev.
Revenue
and
Pollution
Control
0.15%
*Does
not
include
cash
and
cash
equivalents.
1.
For
investors
subject
to
alternative
minimum
tax,
a
small
portion
of
Fund
dividends
may
be
taxable.
Distributions
of
capital
gains
are
generally
taxable.
To
avoid
imposition
of
28%
backup
withholding
on
all
Fund
distributions
and
redemption
proceeds,
U.S.
investors
must
be
properly
certified
on
Form
W-9
and
non-U.S.
investors
on
Form
W-8BEN.
2.
The
distribution
amount
is
the
sum
of
all
net
investment
income
distributions
for
the
period
shown.
Assumes
shares
were
purchased
and
held
for
the
entire
accrual
period.
Since
dividends
accrual
daily,
your
actual
distributions
will
vary
depending
on
the
date
you
purchased
your
shares
and
any
account
activity.
All
Fund
distributions
will
vary
depending
upon
current
market
conditions,
and
past
distributions
are
not
indicative
of
future
trends.
3.
Source:
Moody’s
Investors
Service,
State
government
–
US:
Medians
–
State
debt
rose
2.5%
in
2020,
spurred
by
pandemic-linked
borrowing
,
6
/24/21.
4.
This
does
not
indicate
Moody’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
144
.
Franklin
Massachusetts
Tax-Free
Income
Fund
21
franklintempleton.com
Annual
Report
facing
Massachusetts
included
combined
debt
and
pension
liabilities
that
are
the
seventh
highest
in
the
nation
relative
to
gross
domestic
product.
Manager’s
Discussion
We
used
various
investment
strategies
during
the
12
months
under
review
as
we
sought
to
maximize
tax-free
income
for
shareholders.
Please
read
the
Investment
Strategy
and
Manager’s
Discussion
on
page
4
for
more
information.
Thank
you
for
your
continued
participation
in
Franklin
Massachusetts
Tax-Free
Income
Fund.
We
look
forward
to
serving
your
future
investment
needs.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
February
28,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Performance
Summary
as
of
February
28,
2022
Franklin
Massachusetts
Tax-Free
Income
Fund
22
franklintempleton.com
Annual
Report
The
performance
tables
and
graphs
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
2/28/22
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
1-Year
-1.24%
-4.94%
5-Year
+12.21%
+1.55%
10-Year
+28.99%
+2.19%
Advisor
1-Year
-0.99%
-0.99%
5-Year
+13.27%
+2.52%
10-Year
+30.75%
+2.72%
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
A
1.63%
3.01%
1.13%
2.08%
Advisor
1.93%
3.56%
1.43%
2.64%
See
page
24
for
Performance
Summary
footnotes.
Franklin
Massachusetts
Tax-Free
Income
Fund
Performance
Summary
23
franklintempleton.com
Annual
Report
See
page
24
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
Total
return
represents
the
change
in
value
of
an
investment
over
the
periods
shown.
It
includes
any
applicable
maximum
sales
charge,
Fund
expenses,
account
fees
and
reinvested
distributions.
The
unmanaged
index
includes
reinvestment
of
any
income
or
distributions.
It
differs
from
the
Fund
in
composition
and
does
not
pay
management
fees
or
expenses.
One
cannot
invest
directly
in
an
index.
Class
A
(3/1/12–2/28/22)
Advisor
Class
(3/1/12–2/28/22)
Franklin
Massachusetts
Tax-Free
Income
Fund
Performance
Summary
24
franklintempleton.com
Annual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
Because
municipal
bonds
are
sensitive
to
interest
rate
movements,
the
Fund’s
yield
and
share
price
will
fluctuate
with
market
conditions.
Bond
prices
generally
move
in
the
opposite
direction
of
interest
rates.
Thus,
as
prices
of
bonds
in
the
Fund
adjust
to
a
rise
in
interest
rates,
the
Fund’s
share
price
may
decline.
Because
the
Fund
invests
principally
in
a
single
state,
it
is
subject
to
greater
risk
of
adverse
economic
and
regulatory
changes
in
that
state
than
a
geographically
diversified
fund.
Changes
in
the
credit
rating
of
a
bond,
or
in
the
credit
rating
or
financial
strength
of
a
bond’s
issuer,
insurer
or
guarantor,
may
affect
the
bond’s
value.
The
Fund
may
invest
a
significant
part
of
its
assets
in
municipal
securities
that
finance
similar
types
of
projects,
such
as
utilities,
hospitals,
higher
education
and
transportation.
A
change
that
affects
one
project
would
likely
affect
all
similar
projects,
thereby
increasing
market
risk.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
im-
posed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
Total
returns
with
sales
charges
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
February
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
2/28/22.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
12/20/21
for
the
maximum
combined
effective
federal
and
Massachusetts
personal
income
tax
rate
of
45.80%,
based
on
the
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
Source:
Morningstar.
The
Bloomberg
Municipal
Bond
Index
is
a
market
value-weighted
index
of
tax-exempt,
investment-grade
bonds
with
maturities
of
one
year
or
more.
9.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(3/1/21–2/28/22)
Share
Class
Net
Investment
Income
A
$0.220928
A1
$0.238885
C
$0.171875
R6
$0.256157
Advisor
$0.250865
Total
Annual
Operating
Expenses
9
Share
Class
A
0.86%
Advisor
0.61%
Your
Fund’s
Expenses
Franklin
Massachusetts
Tax-Free
Income
Fund
25
franklintempleton.com
Annual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
181/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements,
for
Class
R6.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
9/1/21
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$965.00
$4.31
$1,020.41
$4.43
0.88%
A1
$1,000
$965.70
$3.58
$1,021.16
$3.68
0.73%
C
$1,000
$963.40
$6.22
$1,018.46
$6.39
1.28%
R6
$1,000
$966.40
$2.88
$1,021.87
$2.96
0.59%
Advisor
$1,000
$966.10
$3.09
$1,021.65
$3.18
0.63%
26
franklintempleton.com
Annual
Report
Franklin
Municipal
Green
Bond
Fund
This
annual
report
for
Franklin
Municipal
Green
Bond
Fund
covers
the
fiscal
year
ended
February
28,
2022.
As
previously
communicated,
the
Fund
is
anticipated
to
be
liquidated
on
or
about
May
6,
2022
(Liquidation
Date);
however,
the
liquidation
may
occur
sooner
if
at
any
time
before
the
liquidation
date
there
are
no
shares
outstanding
in
the
Fund.
The
liquidation
may
also
be
delayed
if
unforeseen
circumstances
arise.
Effective
at
the
close
of
market
on
April
1,
2022,
the
Fund
closed
to
all
new
investors
and
new
investments.
The
Fund
will
not
accept
any
additional
purchases
after
the
close
of
market
on
or
about
April
1,
2022.
The
Fund
reserves
the
right
to
change
this
policy
at
any
time.
Shareholders
of
the
Fund
on
the
Liquidation
Date
will
have
their
shares
redeemed
in
full
and
the
proceeds
will
be
delivered
to
them.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
maximize
income
exempt
from
federal
income
taxes
to
the
extent
consistent
with
prudent
investing
and
the
preservation
of
shareholders’
capital.
1
Under
normal
market
conditions,
the
Fund
invests
at
least
80%
of
its
net
assets
in
municipal
securities
whose
interest
is
free
from
regular
federal
income
taxes.
In
addition,
the
Fund
invests
at
least
80%
of
its
net
assets
in
municipal
green
bonds,
which
are
bonds
that
promote
environmental
sustainability.
There
is
no
regulation
or
universal
framework
for
giving
a
bond
a
“green”
designation.
We
define
green
bonds
as
those
whose
proceeds
go
toward
renewable
energy,
energy
efficiency,
pollution
prevention,
and
other
environmentally
sustainable
uses
listed
in
the
prospectus.
Performance
Overview
The
Fund’s
Class
A
share
price,
as
measured
by
net
asset
value,
decreased
from
$10.27
on
February
28,
2021,
to
$10.11
on
February
28,
2022.
The
Fund’s
Class
A
shares
paid
dividends
totaling
10.6061
cents
per
share
for
the
reporting
period.
2
The
Performance
Summary
beginning
on
page
28
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
0.85%,
based
on
an
annualization
of
the
0.7412
cents
per
share
February
dividend
and
the
maximum
offering
price
of
$10.50
on
February
28,
2022.
An
investor
in
the
2022
maximum
federal
income
tax
bracket
of
37.00%
(plus
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
1.43%
from
a
taxable
investment
to
match
the
Fund’s
Class
A
tax-free
distribution
rate.
For
other
performance
data,
please
see
the
Performance
Summary.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Investment
Strategy
We
use
a
consistent,
disciplined
strategy
in
an
effort
maximize
tax-exempt
income
for
our
shareholders
by
selecting
securities
we
believe
will
provide
the
best
balance
between
risk
and
return
within
the
Fund’s
range
of
allowable
investments.
We
typically
use
a
buy-and-hold
strategy,
which
means
we
generally
hold
securities
in
the
Fund’s
portfolio
for
income
purposes,
rather
than
trading
securities
for
capital
gains,
although
we
may
sell
a
security
at
any
time
if
we
believe
it
could
help
the
Fund
meet
its
goal.
Manager’s
Discussion
During
the
12-month
period
under
review,
the
Fund
invested
in
municipal
bonds
that
supported
environmental
sustainability
and
stewardship,
while
also
delivering
income
Portfolio
Composition
2/28/22
%
of
Total
Investments*
Utilities
20.99%
Local
13.17%
Special
Tax
12.41%
Education
11.93%
Transportation
10.52%
Other
Revenue
Bonds
6.24%
Housing
6.24%
Lease
6.22%
Industrial
Dev.
Revenue
and
Pollution
Control
5.31%
Health
Care
3.07%
State
General
Obligation
1.96%
Refunded
1.94%
*Does
not
include
cash
and
cash
equivalents.
1.
For
investors
subject
to
alternative
minimum
tax,
a
small
portion
of
Fund
dividends
may
be
taxable.
Distributions
of
capital
gains
are
generally
taxable.
To
avoid
imposition
of
28%
backup
withholding
on
all
Fund
distributions
and
redemption
proceeds,
U.S.
investors
must
be
properly
certified
on
Form
W-9
and
non-U.S.
investors
on
Form
W-8BEN.
2.
The
distribution
amount
is
the
sum
of
all
net
investment
income
distributions
for
the
period
shown.
Assumes
shares
were
purchased
and
held
for
the
entire
accrual
period.
Since
dividends
accrue
daily,
your
actual
distributions
will
vary
depending
on
the
date
you
purchased
your
shares
and
any
account
activity.
All
Fund
distributions
will
vary
depending
upon
current
market
conditions,
and
past
distributions
are
not
indicative
of
future
trends.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
153
.
Franklin
Municipal
Green
Bond
Fund
27
franklintempleton.com
Annual
Report
that
is
exempt
from
federal
taxes.
Examples
of
the
types
of
projects
in
which
the
Fund
invests
include
water
and
sewer
utility
systems,
stormwater
management
infrastructure,
energy
efficiency
projects,
green
buildings,
land
conservation
and
clean
energy.
The
strategy
considers
all
U.S.
tax-exempt
municipal
bond
offerings
that
carry
the
“Green
Bond”
designation
in
the
governing
bond
documents.
We
are
focused
on
ensuring
the
authenticity
and
intentionality
of
the
Green
Bond
designation.
Issuers
must
demonstrate
that
bond
proceeds
are
being
used
for
projects
or
programs
dedicated
to
environmental
sustainability.
These
projects
and
programs
should
generally
fall
into
one
of
the
10
eligible
categories
outlined
in
the
Green
Bond
Principles
(GBP),
a
set
of
voluntary
guidelines
to
ensure
the
integrity
of
the
Green
Bond
designation.
In
addition,
the
internal
selection
framework
incorporates
disclosure
and
reporting
policies,
environmental
impact,
and
external
verification.
In
addition,
the
strategy
considers
municipal
bonds
that
are
not
labeled
Green
Bonds
but
that
provide
funding
to
environmentally-friendly
projects
and
programs.
From
that
universe,
we
will
determine
whether
individual
issuers
meet
the
internal
threshold
for
investment
based
on
an
internal
Green
Bond
selection
framework.
The
internal
methodology
ensures
that
the
investment
is
aligned
with
the
Fund’s
objective
of
investing
in
projects
dedicated
to
promoting
environmental
sustainability.
Franklin
recognizes
the
GBP
and
encourages
issuers
to
adhere
to
them.
However,
the
ultimate
evaluation
does
not
require
strict
adherence
with
the
GBP.
Thank
you
for
your
participation
in
Franklin
Municipal
Green
Bond
Fund.
It
has
been
a
pleasure
serving
your
investment
needs.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
February
28,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Performance
Summary
as
of
February
28,
2022
Franklin
Municipal
Green
Bond
Fund
28
franklintempleton.com
Annual
Report
The
performance
tables
and
graphs
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
2
/
28
/2
2
1
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
2
Average
Annual
Total
Return
3
–
A
4
1-Year
-0.56%
-4.29%
Since
Inception
(10/1/19
)
+3.70%
-0.08%
Advisor
1-Year
-0.39%
-0.39%
Since
Inception
(10/1/19)
+4.08%
+1.67%
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
(with
fee
waiver)
(without
fee
waiver)
(with
fee
waiver)
(without
fee
waiver)
A
0.85%
1.43%
1.66%
-1.80%
2.80%
-3.04%
Advisor
1.11%
1.88%
1.62%
-1.55%
2.74%
-2.62%
See
page
30
for
Performance
Summary
footnotes.
Franklin
Municipal
Green
Bond
Fund
Performance
Summary
29
franklintempleton.com
Annual
Report
See
page
30
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
Total
return
represents
the
change
in
value
of
an
investment
over
the
periods
shown.
It
includes
any
applicable
maximum
sales
charge,
Fund
expenses,
account
fees
and
reinvested
distributions.
The
unmanaged
index
includes
reinvestment
of
any
income
or
distributions.
It
differs
from
the
Fund
in
composition
and
does
not
pay
management
fees
or
expenses.
One
cannot
invest
directly
in
an
index.
Class
A
(10/1/19–2/28/22)
Advisor
Class
(10/1/19–2/28/22)
Franklin
Municipal
Green
Bond
Fund
Performance
Summary
30
franklintempleton.com
Annual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
Because
municipal
bonds
are
sensitive
to
interest
rate
movements,
the
Fund’s
yield
and
share
price
will
fluctuate
with
market
conditions.
Bond
prices
generally
move
in
the
opposite
direction
of
interest
rates.
Thus,
as
prices
of
bonds
in
the
Fund
adjust
to
a
rise
in
interest
rates,
the
Fund’s
share
price
may
decline.
Changes
in
the
credit
rating
of
a
bond,
or
in
the
credit
rating
or
financial
strength
of
a
bond’s
issuer,
insurer
or
guarantor,
may
affect
the
bond’s
value.
Some
sectors
might
be
more
likely
to
issue
green
bonds,
and
events
or
factors
impacting
these
sectors
may
have
a
greater
effect
on,
and
may
more
adversely
affect,
the
Fund
than
they
would
a
fund
that
does
not
invest
in
issuers
with
a
common
purpose.
Green
bonds
may
not
result
in
direct
environmental
benefits
and
the
issuer
may
not
use
proceeds
as
intended
or
to
appropriate
new
or
additional
projects.
The
Fund
may
invest
a
significant
part
of
its
assets
in
municipal
securities
that
finance
similar
types
of
projects,
such
as
utilities,
hospitals,
higher
education
and
transporta-
tion.
A
change
that
affects
one
project
would
likely
affect
all
similar
projects,
thereby
increasing
market
risk.
Impacts
on
sectors
more
likely
to
issue
green
bonds
may
have
a
greater
adverse
effect
on
the
Fund
because
the
Fund
focuses
investments
in
green
bonds.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
im-
posed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
1.
The
Fund
has
an
expense
reduction
contractually
guaranteed
through
6/30/22.
Fund
investment
results
reflect
the
expense
reduction;
without
this
reduction,
the
results
would
have
been
lower.
2.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
3.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
4.
Effective
7/24/20,
the
Fund
began
offering
Class
A
shares.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
7/24/20,
a
restated
figure
is
used
based
on
the
Fund’s
Advisor
Class
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A
and
Advisor
Class;
and
(b)
for
periods
after
7/24/20,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
February
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
2/28/22.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
2022
maximum
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
Source:
Morningstar.
The
Bloomberg
Municipal
Bond
Index
is
a
market
value-weighted
index
of
tax-exempt,
investment-grade
municipal
bonds
with
maturities
of
one
year
or
more.
9.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(3/1/21–2/28/22)
Share
Class
Net
Investment
Income
A
$0.106061
C
$0.077884
R6
$0.128230
Advisor
$0.123455
Total
Annual
Operating
Expenses
9
Share
Class
With
Fee
Waiver
Without
Fee
Waiver
A
0.71%
3.86%
Advisor
0.46%
3.61%
Your
Fund’s
Expenses
Franklin
Municipal
Green
Bond
Fund
31
franklintempleton.com
Annual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
181/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
9/1/21
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$965.50
$3.50
$1,021.23
$3.60
0.72%
C
$1,000
$963.50
$5.44
$1,019.25
$5.60
1.12%
R6
$1,000
$966.70
$2.30
$1,022.46
$2.36
0.47%
Advisor
$1,000
$966.70
$2.28
$1,022.48
$2.35
0.47%
32
franklintempleton.com
Annual
Report
Franklin
New
Jersey
Tax-Free
Income
Fund
This
annual
report
for
Franklin
New
Jersey
Tax-Free
Income
Fund
covers
the
fiscal
year
ended
February
28,
2022.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
investors
with
as
high
a
level
of
income
exempt
from
federal
and
New
Jersey
personal
income
taxes
as
is
consistent
with
prudent
investment
management
and
the
preservation
of
shareholders’
capital
by
normally
investing
at
least
80%
of
its
net
assets
in
securities
that
pay
interest
free
from
such
taxes.
1
Performance
Overview
The
Fund’s
Class
A
share
price,
as
measured
by
net
asset
value,
decreased
from
$11.46
on
February
28,
2021,
to
$11.18
on
February
28,
2022.
The
Fund’s
Class
A
shares
paid
dividends
totaling
26.7329
cents
per
share
for
the
reporting
period.
2
The
Performance
Summary
beginning
on
page
34
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
2.12%,
based
on
an
annualization
of
the
2.0481
cents
per
share
February
dividend
and
the
maximum
offering
price
of
$11.62
on
February
28,
2022.
An
investor
in
the
2022
maximum
combined
effective
federal
and
New
Jersey
personal
income
tax
bracket
of
51.55%
(including
3.8%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
4.38%
from
a
taxable
investment
to
match
the
Fund’s
Class
A
tax-free
distribution
rate.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
State
Update
During
the
12-month
period,
New
Jersey’s
large,
diverse
and
wealthy
economy
expanded
amid
continued
recovery
from
the
COVID-19
pandemic.
New
Jersey’s
recovery
has
lagged
the
broader
U.S.
due
to
relatively
slow
population
growth
and
a
high
cost
of
living
and
doing
business.
However,
its
diverse
employment
base
is
less
exposed
to
pandemic-related
closures.
The
state’s
unemployment
rate
began
the
period
at
7.2%
and
ended
at
4.6%,
compared
with
the
3.8%
national
rate.
New
Jersey
ended
fiscal
year
(FY)
2021
with
the
highest
fund
balance
in
over
a
decade,
but
its
budget
gap
is
10%
of
the
budget
as
it
relies
on
fund
balance
and
federal
aid.
New
Jersey’s
net
tax-supported
debt
was
$4,569
per
capita
and
6.1%
of
personal
income,
well
above
the
$1,039
and
1.9%
national
medians,
respectively.
3
Independent
credit
rating
agency
Moody’s
Investors
Service
maintained
New
Jersey’s
general
obligation
bonds’
A3
rating,
confirming
a
stable
outlook.
4
Moody’s
rating
reflects
New
Jersey’s
better-than-expected
revenue
performance
in
FY
2021
and
its
more
aggressive
approach
to
pension
and
debt
burdens,
which
demonstrate
improved
fiscal
management.
According
to
Moody’s,
challenges
included
increased
spending
in
FY
2022,
including
on
education,
and
structural
budget
gaps
that
make
New
Jersey
vulnerable
to
budget
risks
in
a
period
of
continued
uncertainty.
Portfolio
Composition
2/28/22
%
of
Total
Investments*
Transportation
27.92%
Education
21.58%
Health
Care
17.13%
Lease
9.38%
Local
9.18%
Housing
8.67%
Refunded
2.51%
Utilities
2.06%
State
General
Obligation
1.12%
Special
Tax
0.45%
*
Does
not
include
cash
and
cash
equivalents.
1.
For
state
personal
income
taxes,
the
80%
minimum
is
measured
by
total
Fund
assets.
For
investors
subject
to
alternative
minimum
tax,
a
small
portion
of
Fund
dividends
may
be
taxable.
Distributions
of
capital
gains
are
generally
taxable.
To
avoid
imposition
of
28%
backup
withholding
on
all
Fund
distributions
and
redemption
proceeds,
U.S.
investors
must
be
properly
certified
on
Form
W-9
and
non-U.S.
investors
on
Form
W-8BEN.
2.
The
distribution
amount
is
the
sum
of
all
net
investment
income
distributions
for
the
period
shown.
Assumes
shares
were
purchased
and
held
for
the
entire
accrual
period.
Since
dividends
accrual
daily,
your
actual
distributions
will
vary
depending
on
the
date
you
purchased
your
shares
and
any
account
activity.
All
Fund
distributions
will
vary
depending
upon
current
market
conditions,
and
past
distributions
are
not
indicative
of
future
trends.
3.
Source:
Moody’s
Investors
Service,
State
government
–
US:
Medians
–
State
debt
rose
2.5%
in
2020,
spurred
by
pandemic-linked
borrowing,
6/24/21
.
4.
This
does
not
indicate
Moody’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
162
.
Franklin
New
Jersey
Tax-Free
Income
Fund
33
franklintempleton.com
Annual
Report
Manager’s
Discussion
We
used
various
investment
strategies
during
the
12
months
under
review
as
we
sought
to
maximize
tax-free
income
for
shareholders.
Please
read
the
Investment
Strategy
and
Manager’s
Discussion
on
page
4
for
more
information.
Thank
you
for
your
continued
participation
in
Franklin
New
Jersey
Tax-Free
Income
Fund.
We
look
forward
to
serving
your
future
investment
needs.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
February
28,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Performance
Summary
as
of
February
28,
2022
Franklin
New
Jersey
Tax-Free
Income
Fund
34
franklintempleton.com
Annual
Report
The
performance
tables
and
graphs
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
2
/
28
/2
2
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
1-Year
-0.18%
-3.92%
5-Year
+13.08%
+1.71%
10-Year
+24.98%
+1.87%
Advisor
1-Year
-0.01%
-0.01%
5-Year
+14.05%
+2.66%
10-Year
+26.70%
+2.39%
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
A
2.12%
4.38%
1.35%
2.79%
Advisor
2.43%
5.02%
1.66%
3.43%
See
page
36
for
Performance
Summary
footnotes.
Franklin
New
Jersey
Tax-Free
Income
Fund
Performance
Summary
35
franklintempleton.com
Annual
Report
See
page
36
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
Total
return
represents
the
change
in
value
of
an
investment
over
the
periods
shown.
It
includes
any
applicable
maximum
sales
charge,
Fund
expenses,
account
fees
and
reinvested
distributions.
The
unmanaged
index
includes
reinvestment
of
any
income
or
distributions.
It
differs
from
the
Fund
in
composition
and
does
not
pay
management
fees
or
expenses.
One
cannot
invest
directly
in
an
index.
Class
A
(3/1/12–2/28/22)
Advisor
Class
(3/1/12–2/28/22)
Franklin
New
Jersey
Tax-Free
Income
Fund
Performance
Summary
36
franklintempleton.com
Annual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
Because
municipal
bonds
are
sensitive
to
interest
rate
movements,
the
Fund’s
yield
and
share
price
will
fluctuate
with
market
conditions.
Bond
prices
generally
move
in
the
opposite
direction
of
interest
rates.
Thus,
as
prices
of
bonds
in
the
Fund
adjust
to
a
rise
in
interest
rates,
the
Fund’s
share
price
may
decline.
Because
the
Fund
invests
principally
in
a
single
state,
it
is
subject
to
greater
risk
of
adverse
economic
and
regulatory
changes
in
that
state
than
a
geographically
diversified
fund.
Changes
in
the
credit
rating
of
a
bond,
or
in
the
credit
rating
or
financial
strength
of
a
bond’s
issuer,
insurer
or
guarantor,
may
affect
the
bond’s
value.
The
Fund
may
invest
a
significant
part
of
its
assets
in
municipal
securities
that
finance
similar
types
of
projects,
such
as
utilities,
hospitals,
higher
education
and
transportation.
A
change
that
affects
one
project
would
likely
affect
all
similar
projects,
thereby
increasing
market
risk.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
im-
posed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
February
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
2/28/22.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
12/20/21
for
the
maximum
combined
effective
federal
and
New
Jersey
personal
income
tax
rate
of
51.55%,
based
on
the
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
Source:
Morningstar.
The
Bloomberg
Municipal
Bond
Index
is
a
market
value-weighted
index
of
tax-exempt,
investment-grade
municipal
bonds
with
maturities
of
one
year
or
more.
9.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(3/1/21–2/28/22)
Share
Class
Net
Investment
Income
A
$0.267329
A1
$0.284827
C
$0.219735
R6
$0.301476
Advisor
$0.296440
Total
Annual
Operating
Expenses
9
Share
Class
A
0.82%
Advisor
0.57%
Your
Fund’s
Expenses
Franklin
New
Jersey
Tax-Free
Income
Fund
37
franklintempleton.com
Annual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
2
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
181/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements,
for
Class
R6.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
9/1/21
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$969.00
$4.01
$1,020.72
$4.12
0.82%
A1
$1,000
$969.60
$3.28
$1,021.46
$3.37
0.67%
C
$1,000
$966.50
$5.93
$1,018.77
$6.08
1.22%
R6
$1,000
$970.30
$2.59
$1,022.16
$2.66
0.53%
Advisor
$1,000
$970.10
$2.80
$1,021.96
$2.87
0.57%
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
38
a
Year
Ended
February
28,
Year
Ended
February
28,
2019
b
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
................................
$12.22
$12.39
$11.98
$11.87
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.23
0.26
0.27
0.15
Net
realized
and
unrealized
gains
(losses)
........................
(0.40)
(0.17)
0.43
0.11
Total
from
investment
operations
.................................
(0.17)
0.09
0.70
0.26
Less
distributions
from:
Net
investment
income
.......................................
(0.23)
(0.26)
(0.29)
(0.15)
Net
asset
value,
end
of
year
....................................
$11.82
$12.22
$12.39
$11.98
Total
return
e
................................................
(1.42)%
0.72%
5.92%
2.20%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
...................
0.80%
0.80%
0.81%
0.80%
Expenses
net
of
waiver
and
payments
by
affiliates
g
...................
0.70%
0.70%
0.71%
0.71%
Net
investment
income
........................................
1.89%
2.09%
2.28%
2.56%
Supplemental
data
Net
assets,
end
of
year
(000’s)
..................................
$754,463
$629,566
$407,125
$182,330
Portfolio
turnover
rate
.........................................
22.05%
18.84%
14.78%
2.57%
a
For
the
year
ended
February
29.
b
For
the
period
September
10,
2018
(effective
date)
to
February
28,
2019.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
39
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$12.21
$12.38
$11.96
$11.94
$12.11
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.25
0.28
0.30
0.32
0.31
Net
realized
and
unrealized
gains
(losses)
...........
(0.40)
(0.17)
0.43
0.02
(0.17)
Total
from
investment
operations
....................
(0.15)
0.11
0.73
0.34
0.14
Less
distributions
from:
Net
investment
income
..........................
(0.25)
(0.28)
(0.31)
(0.32)
(0.31)
Net
asset
value,
end
of
year
.......................
$11.81
$12.21
$12.38
$11.96
$11.94
Total
return
d
...................................
(1.27)%
0.87%
6.17%
2.91%
1.14%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.65%
0.65%
0.66%
0.65%
0.66%
Expenses
net
of
waiver
and
payments
by
affiliates
.......
0.55%
e
0.55%
e
0.56%
e
0.56%
e
0.65%
Net
investment
income
...........................
2.05%
2.26%
2.43%
2.71%
2.56%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$1,265,052
$1,403,417
$1,516,009
$1,575,494
$1,850,075
Portfolio
turnover
rate
............................
22.05%
18.84%
14.78%
2.57%
10.72%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
40
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$12.24
$12.42
$12.00
$11.98
$12.14
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.18
0.21
0.23
0.26
0.25
Net
realized
and
unrealized
gains
(losses)
...........
(0.39)
(0.18)
0.43
0.02
(0.17)
Total
from
investment
operations
....................
(0.21)
0.03
0.66
0.28
0.08
Less
distributions
from:
Net
investment
income
..........................
(0.18)
(0.21)
(0.24)
(0.26)
(0.24)
Net
asset
value,
end
of
year
.......................
$11.85
$12.24
$12.42
$12.00
$11.98
Total
return
d
...................................
(1.73)%
0.24%
5.58%
2.34%
0.67%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
1.20%
1.20%
1.21%
1.20%
1.20%
Expenses
net
of
waiver
and
payments
by
affiliates
.......
1.10%
e
1.10%
e
1.11%
e
1.11%
e
1.19%
Net
investment
income
...........................
1.50%
1.72%
1.88%
2.16%
2.02%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$67,008
$121,312
$203,994
$262,612
$358,228
Portfolio
turnover
rate
............................
22.05%
18.84%
14.78%
2.57%
10.72%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
41
In
a
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2022
2021
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$12.24
$12.41
$11.99
$11.97
$12.28
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.27
0.30
0.32
0.34
0.20
Net
realized
and
unrealized
gains
(losses)
...........
(0.40)
(0.18)
0.43
0.02
(0.32)
Total
from
investment
operations
....................
(0.13)
0.12
0.75
0.36
(0.12)
Less
distributions
from:
Net
investment
income
..........................
(0.27)
(0.29)
(0.33)
(0.34)
(0.19)
Net
asset
value,
end
of
year
.......................
$11.84
$12.24
$12.41
$11.99
$11.97
Total
return
e
...................................
(1.12)%
1.03%
6.33%
3.06%
(0.97)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
......
0.50%
0.50%
0.50%
0.49%
0.49%
Expenses
net
of
waiver
and
payments
by
affiliates
.......
0.40%
g
0.40%
g
0.40%
g
0.39%
g
0.48%
Net
investment
income
...........................
2.19%
2.41%
2.59%
2.88%
2.73%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$257,641
$414,751
$410,541
$417,612
$672,199
Portfolio
turnover
rate
............................
22.05%
18.84%
14.78%
2.57%
10.72%
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
42
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$12.24
$12.41
$11.99
$11.97
$12.13
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.26
0.29
0.31
0.33
0.32
Net
realized
and
unrealized
gains
(losses)
...........
(0.40)
(0.17)
0.43
0.02
(0.16)
Total
from
investment
operations
....................
(0.14)
0.12
0.74
0.35
0.16
Less
distributions
from:
Net
investment
income
..........................
(0.26)
(0.29)
(0.32)
(0.33)
(0.32)
Net
asset
value,
end
of
year
.......................
$11.84
$12.24
$12.41
$11.99
$11.97
Total
return
....................................
(1.17)%
0.97%
6.27%
3.00%
1.32%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.55%
0.55%
0.56%
0.55%
0.56%
Expenses
net
of
waiver
and
payments
by
affiliates
.......
0.45%
d
0.45%
d
0.46%
d
0.46%
d
0.55%
Net
investment
income
...........................
2.14%
2.36%
2.53%
2.81%
2.66%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$1,126,152
$1,153,049
$1,277,185
$1,103,570
$1,196,627
Portfolio
turnover
rate
............................
22.05%
18.84%
14.78%
2.57%
10.72%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments,
February
28,
2022
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
43
a
a
Shares
a
Value
a
Management
Investment
Companies
1.9%
Capital
Markets
1.9%
a
Franklin
Liberty
Federal
Tax-Free
Bond
ETF
...............................
2,515,000
$
65,440,300
Total
Management
Investment
Companies
(Cost
$68,628,312)
....................
65,440,300
Principal
Amount
a
a
a
a
Municipal
Bonds
96.8%
Alabama
1.9%
b
Black
Belt
Energy
Gas
District
,
Revenue
,
2022
A
,
Mandatory
Put
,
4
%
,
12/01/29
....
$
7,000,000
7,770,774
Chatom
Industrial
Development
Board
,
PowerSouth
Energy
Cooperative,
Revenue,
2020,
Refunding,
AGMC
Insured,
5%,
8/01/28
........................................................
500,000
592,924
PowerSouth
Energy
Cooperative,
Revenue,
2020,
Refunding,
AGMC
Insured,
5%,
8/01/29
........................................................
485,000
583,868
PowerSouth
Energy
Cooperative,
Revenue,
2020,
Refunding,
AGMC
Insured,
5%,
8/01/30
........................................................
425,000
518,394
Health
Care
Authority
of
the
City
of
Huntsville
(The)
,
Health
Care
Authority
of
the
City
of
Huntsville
(The)
Obligated
Group
,
Revenue
,
2020
B
,
4
%
,
6/01/39
..............
2,250,000
2,523,367
Infirmary
Health
System
Special
Care
Facilities
Financing
Authority
of
Mobile
,
Infirmary
Health
System
Obligated
Group,
Revenue,
2016
A,
5%,
2/01/27
.......
4,920,000
5,545,332
Infirmary
Health
System
Obligated
Group,
Revenue,
2016
A,
5%,
2/01/28
.......
5,000,000
5,613,261
Madison
City
Board
of
Education
,
Special
Tax,
2019,
4%,
2/01/33
.......................................
2,855,000
3,276,539
Special
Tax,
2019,
4%,
2/01/34
.......................................
2,970,000
3,394,588
Special
Tax,
2019,
4%,
2/01/35
.......................................
3,095,000
3,533,866
Special
Tax,
2019,
4%,
2/01/37
.......................................
3,350,000
3,817,544
b
Southeast
Energy
Authority
A
Cooperative
District
,
Revenue
,
2021
A
,
Mandatory
Put
,
4
%
,
10/01/28
.....................................................
26,000,000
28,615,054
65,785,511
Alaska
0.1%
Alaska
Municipal
Bond
Bank
Authority
,
Revenue,
2020,
Refunding,
4%,
12/01/35
................................
1,710,000
1,953,949
Revenue,
2020,
Refunding,
4%,
12/01/37
................................
1,305,000
1,489,004
3,442,953
Arizona
3.0%
Arizona
Department
of
Transportation
,
State
Highway
Fund
,
Revenue
,
2015
,
Refunding
,
5
%
,
7/01/29
.............................................
10,920,000
11,827,207
Arizona
Industrial
Development
Authority
,
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2019
A,
5%,
11/01/29
.......................................................
1,100,000
1,295,880
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2019
A,
5%,
11/01/30
.......................................................
600,000
706,996
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2019
A,
5%,
11/01/31
.......................................................
630,000
741,112
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2019
A,
5%,
11/01/32
.......................................................
1,000,000
1,174,333
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2019
A,
5%,
11/01/35
.......................................................
1,115,000
1,303,210
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2019
A,
5%,
11/01/36
.......................................................
1,250,000
1,457,200
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2019
A,
5%,
11/01/37
.......................................................
1,050,000
1,222,966
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2020
A,
4%,
11/01/37
.......................................................
1,105,000
1,231,778
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2020
A,
4%,
11/01/38
.......................................................
600,000
667,548
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
44
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Arizona
(continued)
Arizona
Industrial
Development
Authority,
(continued)
Kipp
New
York,
Inc.
Jerome
Facility,
Revenue,
2021
B,
5%,
7/01/27
............
$
160,000
$
176,915
Kipp
New
York,
Inc.
Jerome
Facility,
Revenue,
2021
B,
5%,
7/01/28
............
170,000
187,251
Kipp
New
York,
Inc.
Jerome
Facility,
Revenue,
2021
B,
5%,
7/01/29
............
160,000
175,697
Kipp
New
York,
Inc.
Jerome
Facility,
Revenue,
2021
B,
5%,
7/01/30
............
185,000
202,683
Kipp
New
York,
Inc.
Jerome
Facility,
Revenue,
2021
B,
5%,
7/01/31
............
195,000
213,085
Kipp
New
York,
Inc.
Macombs
Facility,
Revenue,
2021
A,
5%,
7/01/27
..........
55,000
61,635
Kipp
New
York,
Inc.
Macombs
Facility,
Revenue,
2021
A,
5%,
7/01/28
..........
60,000
68,123
Kipp
New
York,
Inc.
Macombs
Facility,
Revenue,
2021
A,
5%,
7/01/29
..........
60,000
68,950
Kipp
New
York,
Inc.
Macombs
Facility,
Revenue,
2021
A,
5%,
7/01/30
..........
65,000
75,566
Kipp
New
York,
Inc.
Macombs
Facility,
Revenue,
2021
A,
5%,
7/01/31
..........
70,000
82,160
Phoenix
Children's
Hospital
Obligated
Group,
Revenue,
2020
A,
5%,
2/01/35
.....
500,000
607,348
Phoenix
Children's
Hospital
Obligated
Group,
Revenue,
2020
A,
5%,
2/01/36
.....
750,000
909,022
Phoenix
Children's
Hospital
Obligated
Group,
Revenue,
2020
A,
5%,
2/01/37
.....
600,000
725,400
Phoenix
Children's
Hospital
Obligated
Group,
Revenue,
2020
A,
5%,
2/01/38
.....
1,000,000
1,206,885
Phoenix
Children's
Hospital
Obligated
Group,
Revenue,
2020
A,
3%,
2/01/39
.....
1,200,000
1,228,139
City
of
Mesa
,
Utility
System
,
Revenue
,
2016
,
Refunding
,
5
%
,
7/01/29
............
2,500,000
2,858,893
City
of
Phoenix
Civic
Improvement
Corp.
,
Airport,
Revenue,
Junior
Lien,
2017
D,
Refunding,
5%,
7/01/30
...............
10,000,000
11,670,101
Airport,
Revenue,
Junior
Lien,
2019
B,
5%,
7/01/35
........................
3,500,000
4,112,670
Airport,
Revenue,
Junior
Lien,
2019
B,
5%,
7/01/36
........................
10,225,000
12,004,465
Phoenix
Sky
Harbor
International
Airport
Customer
Facility
Charges,
Revenue,
2019
A,
5%,
7/01/35
..................................................
9,720,000
11,558,167
Phoenix
Sky
Harbor
International
Airport
Customer
Facility
Charges,
Revenue,
2019
A,
5%,
7/01/36
..................................................
6,380,000
7,579,948
Glendale
Industrial
Development
Authority
,
Midwestern
University
Foundation,
Revenue,
2020,
Refunding,
5%,
5/15/30
......
525,000
647,100
Midwestern
University
Foundation,
Revenue,
2020,
Refunding,
5%,
5/15/31
......
425,000
519,542
Midwestern
University
Foundation,
Revenue,
2020,
Refunding,
5%,
5/15/32
......
525,000
639,669
Maricopa
County
Industrial
Development
Authority
,
HonorHealth
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
9/01/30
.......
850,000
1,022,010
HonorHealth
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
9/01/31
.......
1,000,000
1,199,468
HonorHealth
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
9/01/32
.......
1,000,000
1,197,916
HonorHealth
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
9/01/33
.......
800,000
957,592
Pima
County
Regional
Transportation
Authority
,
Revenue,
2014,
5%,
6/01/24
.........................................
3,385,000
3,553,350
Revenue,
2014,
5%,
6/01/26
.........................................
7,180,000
7,529,736
Scottsdale
Municipal
Property
Corp.
,
Revenue,
2015,
Refunding,
5%,
7/01/26
.................................
2,580,000
2,888,835
Revenue,
2015,
Pre-Refunded,
5%,
7/01/27
..............................
2,000,000
2,241,493
Revenue,
2015,
Pre-Refunded,
5%,
7/01/28
..............................
3,325,000
3,726,483
103,524,527
Arkansas
0.5%
Arkansas
Development
Finance
Authority
,
Baptist
Memorial
Health
Care
Obligated
Group,
Revenue,
2020
B-1,
Refunding,
5%,
9/01/35
........................................................
4,630,000
5,548,445
Baptist
Memorial
Health
Care
Obligated
Group,
Revenue,
2020
B-1,
Refunding,
5%,
9/01/36
........................................................
3,625,000
4,339,621
Baptist
Memorial
Health
Care
Obligated
Group,
Revenue,
2020
B-1,
Refunding,
5%,
9/01/37
........................................................
1,250,000
1,495,565
Baptist
Memorial
Health
Care
Obligated
Group,
Revenue,
2020
B-1,
Refunding,
5%,
9/01/38
........................................................
1,000,000
1,194,238
Baptist
Memorial
Health
Care
Obligated
Group,
Revenue,
2020
B-1,
Refunding,
5%,
9/01/39
........................................................
1,000,000
1,192,077
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
45
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Arkansas
(continued)
City
of
Fort
Smith
,
Sales
&
Use
Tax
,
Revenue
,
2012
,
Refunding
,
5
%
,
5/01/23
......
$
5,000,000
$
5,032,896
18,802,842
California
4.0%
Bay
Area
Toll
Authority
,
Revenue,
2017
S-7,
Refunding,
4%,
4/01/31
.............................
7,000,000
7,779,232
Revenue,
2017
S-7,
Refunding,
4%,
4/01/33
.............................
5,000,000
5,546,301
b
California
Community
Choice
Financing
Authority
,
Revenue
,
2021
A
,
Mandatory
Put
,
4
%
,
12/01/27
.....................................................
2,500,000
2,749,914
b
California
Infrastructure
&
Economic
Development
Bank
,
California
Academy
of
Sciences
,
Revenue
,
2018
B
,
Refunding
,
Mandatory
Put
,
0.55
%
,
(
SIFMA
Municipal
Swap
Index
+
0.35
%
),
8/01/24
........................................
5,000,000
5,005,354
California
Statewide
Communities
Development
Authority
,
Emanate
Health
Obligated
Group,
Revenue,
2020
A,
5%,
4/01/35
.............
1,300,000
1,591,850
Emanate
Health
Obligated
Group,
Revenue,
2020
A,
4%,
4/01/37
.............
700,000
794,052
Emanate
Health
Obligated
Group,
Revenue,
2020
A,
4%,
4/01/38
.............
1,350,000
1,528,594
Southern
California
Edison
Co.,
Revenue,
2010
A,
Refunding,
1.75%,
9/01/29
....
7,000,000
6,633,945
City
of
Riverside
,
Sewer,
Revenue,
2015
A,
Refunding,
5%,
8/01/34
.........................
10,605,000
11,813,124
Sewer,
Revenue,
2015
A,
Refunding,
5%,
8/01/35
.........................
11,000,000
12,245,354
Golden
State
Tobacco
Securitization
Corp.
,
Revenue,
2021
B-1,
Refunding,
1.85%,
6/01/31
...........................
3,000,000
2,989,250
Revenue,
2021
B-1,
Refunding,
3.85%,
6/01/50
...........................
5,000,000
4,951,840
Los
Angeles
Department
of
Water
&
Power
,
Power
System,
Revenue,
2013
A,
5%,
7/01/26
............................
11,025,000
11,400,908
Power
System,
Revenue,
2017
B,
Refunding,
5%,
7/01/31
...................
8,220,000
9,502,932
Power
System,
Revenue,
2017
C,
5%,
7/01/32
............................
4,615,000
5,392,107
Power
System,
Revenue,
2017
C,
5%,
7/01/33
............................
3,960,000
4,622,413
Power
System,
Revenue,
2017
C,
5%,
7/01/34
............................
4,080,000
4,760,221
Los
Angeles
Unified
School
District
,
GO
,
2018
B-1
,
5
%
,
7/01/32
................
8,000,000
9,542,532
San
Diego
Public
Facilities
Financing
Authority
,
City
of
San
Diego
Water
Utility,
Revenue,
2020
A,
4%,
8/01/36
................
855,000
981,241
City
of
San
Diego
Water
Utility,
Revenue,
2020
A,
4%,
8/01/37
................
1,250,000
1,431,506
State
of
California
,
GO,
Refunding,
5%,
10/01/25
.........................................
15,000,000
15,664,886
GO,
Refunding,
5%,
8/01/30
.........................................
10,000,000
11,167,505
138,095,061
Colorado
3.2%
City
&
County
of
Denver
,
Airport
System,
Revenue,
B,
5.25%,
11/15/26
.............................
5,000,000
5,319,241
Airport
System,
Revenue,
B,
5.25%,
11/15/27
.............................
4,250,000
4,517,643
Colorado
Health
Facilities
Authority
,
Boulder
Community
Health
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
10/01/29
.......................................................
650,000
786,268
Boulder
Community
Health
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
10/01/30
.......................................................
700,000
859,746
Boulder
Community
Health
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
10/01/31
.......................................................
1,000,000
1,227,268
Boulder
Community
Health
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
10/01/32
.......................................................
750,000
919,037
Boulder
Community
Health
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
10/01/33
.......................................................
1,000,000
1,222,439
Boulder
Community
Health
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
10/01/34
.......................................................
1,100,000
1,341,346
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-1,
Refunding,
5%,
8/01/33
5,000,000
5,917,048
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-1,
Refunding,
5%,
8/01/36
8,500,000
10,012,834
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
46
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Colorado
(continued)
Colorado
Health
Facilities
Authority,
(continued)
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-1,
Refunding,
4%,
8/01/37
$
2,250,000
$
2,475,877
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-1,
Refunding,
4%,
8/01/39
1,250,000
1,370,903
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/32
2,000,000
2,368,882
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/34
5,500,000
6,494,721
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/35
4,500,000
5,309,015
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/37
2,000,000
2,354,557
Fort
Carson
Family
Housing
LLC
,
Revenue
,
1999
,
NATL
Insured
,
7.86
%
,
11/15/29
..
34,470,000
41,172,002
Regional
Transportation
District
,
COP,
2013
A,
Refunding,
5%,
6/01/26
..................................
14,000,000
14,649,739
Denver
Transit
Partners
LLC,
Revenue,
2020
A,
Refunding,
4%,
7/15/33
........
1,000,000
1,150,330
Denver
Transit
Partners
LLC,
Revenue,
2020
A,
Refunding,
4%,
7/15/34
........
1,400,000
1,570,983
Sterling
Ranch
Community
Authority
Board
,
Sterling
Ranch
Colorado
Metropolitan
District
No.
2
,
Revenue
,
2020
A
,
Refunding
,
3.375
%
,
12/01/30
................
500,000
517,046
111,556,925
Connecticut
2.1%
City
of
Stamford
,
GO,
2019,
3%,
6/01/35
.............................................
3,025,000
3,176,190
GO,
2019,
3%,
6/01/36
.............................................
3,025,000
3,174,103
Connecticut
State
Health
&
Educational
Facilities
Authority
,
Hartford
HealthCare
Obligated
Group,
Revenue,
2020
A,
4%,
7/01/37
..........
2,500,000
2,816,750
Nuvance
Health
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
7/01/33
.....
5,000,000
5,823,551
Nuvance
Health
Obligated
Group,
Revenue,
2019
A,
Refunding,
4%,
7/01/35
.....
250,000
270,736
Nuvance
Health
Obligated
Group,
Revenue,
2019
A,
Refunding,
4%,
7/01/36
.....
4,750,000
5,139,435
Sacred
Heart
University,
Inc.,
Revenue,
K,
5%,
7/01/32
.....................
700,000
850,192
Sacred
Heart
University,
Inc.,
Revenue,
K,
5%,
7/01/33
.....................
625,000
758,362
Sacred
Heart
University,
Inc.,
Revenue,
K,
5%,
7/01/34
.....................
725,000
878,846
Sacred
Heart
University,
Inc.,
Revenue,
K,
5%,
7/01/35
.....................
550,000
666,025
c
Stamford
Hospital
Obligated
Group
(The),
Revenue,
M,
Refunding,
5%,
7/01/26
...
200,000
224,883
c
Stamford
Hospital
Obligated
Group
(The),
Revenue,
M,
Refunding,
5%,
7/01/27
...
250,000
286,805
State
of
Connecticut
,
GO,
2020
C,
4%,
6/01/34
............................................
1,500,000
1,729,874
GO,
2020
C,
4%,
6/01/36
............................................
1,800,000
2,056,924
GO,
2021
A,
3%,
1/15/33
............................................
3,500,000
3,716,294
GO,
2021
B,
3%,
6/01/37
............................................
8,620,000
8,839,081
Special
Tax,
2020
A,
5%,
5/01/35
......................................
4,500,000
5,530,836
Special
Tax,
2020
A,
4%,
5/01/36
......................................
3,500,000
3,995,341
Special
Tax,
2021
A,
5%,
5/01/41
......................................
1,500,000
1,861,969
Special
Tax,
A,
5%,
1/01/28
..........................................
10,000,000
10,319,751
University
of
Connecticut
,
Revenue,
2016
A,
5%,
3/15/30
........................................
3,075,000
3,483,091
Revenue,
2016
A,
5%,
3/15/31
........................................
5,025,000
5,689,775
71,288,814
Florida
8.5%
Alachua
County
Health
Facilities
Authority
,
Shands
Teaching
Hospital
&
Clinics
Obligated
Group,
Revenue,
B-1,
Refunding,
5%,
12/01/31
.......................................................
5,000,000
6,116,536
Shands
Teaching
Hospital
&
Clinics
Obligated
Group,
Revenue,
B-1,
Refunding,
5%,
12/01/32
.......................................................
1,600,000
1,954,896
Shands
Teaching
Hospital
&
Clinics
Obligated
Group,
Revenue,
B-1,
Refunding,
5%,
12/01/33
.......................................................
3,445,000
4,205,456
Shands
Teaching
Hospital
&
Clinics
Obligated
Group,
Revenue,
B-1,
Refunding,
5%,
12/01/35
.......................................................
2,350,000
2,863,364
Broward
County
,
Water
&
Sewer
Utility,
Revenue,
B,
Refunding,
5%,
10/01/24
.................
6,000,000
6,146,263
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
47
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
Broward
County,
(continued)
Water
&
Sewer
Utility,
Revenue,
B,
Refunding,
5%,
10/01/25
.................
$
6,325,000
$
6,477,688
Capital
Projects
Finance
Authority
,
CAPFA
Capital
Corp.
2000F
,
Revenue
,
2020
A-1
,
Refunding
,
5
%
,
10/01/30
............................................
1,000,000
1,185,184
d
Capital
Trust
Agency,
Inc.
,
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
5,345,000
5,243,071
Revenue,
144A,
2021
A-2,
5.1%,
12/01/31
...............................
1,850,000
1,774,835
SHI
-
Lake
Osborne
LLC,
Revenue,
144A,
2021
A-1
T,
5.05%,
7/01/34
..........
855,000
834,667
Centre
Lake
Community
Development
District
,
Special
Assessment
,
2021
,
2.75
%
,
5/01/30
.........................................................
255,000
250,046
City
of
Clearwater
,
Water
&
Sewer
,
Revenue
,
2017
,
Refunding
,
5
%
,
12/01/33
......
5,520,000
6,390,401
City
of
Gainesville
,
Utilities
System
,
Revenue
,
2017
A
,
5
%
,
10/01/30
.............
1,500,000
1,767,373
City
of
Jacksonville
,
Revenue,
2012
A,
Refunding,
5%,
10/01/28
..............................
6,000,000
6,144,843
Genesis
Health,
Inc.
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/01/39
..
1,650,000
1,827,775
City
of
Pompano
Beach
,
John
Knox
Village
of
Florida,
Inc.
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
9/01/40
........................................................
2,500,000
2,613,499
John
Knox
Village
of
Florida,
Inc.
Obligated
Group,
Revenue,
2021
B-1,
2%,
1/01/29
4,300,000
4,066,813
City
of
Port
St.
Lucie
,
Utility
System,
Revenue,
2016,
Refunding,
4%,
9/01/30
.....................
1,500,000
1,661,949
Utility
System,
Revenue,
2016,
Refunding,
4%,
9/01/31
.....................
1,635,000
1,809,270
City
of
South
Miami
Health
Facilities
Authority,
Inc.
,
Baptist
Health
South
Florida
Obligated
Group
,
Revenue
,
2017
,
Refunding
,
4
%
,
8/15/33
...................
6,000,000
6,580,010
City
of
Tampa
,
H
Lee
Moffitt
Cancer
Center
&
Research
Institute
Obligated
Group,
Revenue,
2020
B,
4%,
7/01/38
..................................................
700,000
781,651
H
Lee
Moffitt
Cancer
Center
&
Research
Institute
Obligated
Group,
Revenue,
2020
B,
4%,
7/01/39
..................................................
500,000
557,302
H
Lee
Moffitt
Cancer
Center
&
Research
Institute
Obligated
Group,
Revenue,
2020
B,
5%,
7/01/40
..................................................
1,000,000
1,190,078
County
of
Lee
,
Airport,
Revenue,
2021
A,
Refunding,
5%,
10/01/30
........................
10,000,000
12,098,534
Airport,
Revenue,
2021
A,
Refunding,
5%,
10/01/31
........................
6,000,000
7,366,925
County
of
Miami-Dade
,
Transit
System,
Revenue,
2012,
Pre-Refunded,
5%,
7/01/24
.................
2,250,000
2,282,836
Transit
System,
Revenue,
2012,
Pre-Refunded,
5%,
7/01/25
.................
3,000,000
3,043,782
Transit
System,
Revenue,
2012,
Pre-Refunded,
5%,
7/01/26
.................
4,000,000
4,058,376
Transit
System,
Revenue,
2012,
Pre-Refunded,
5%,
7/01/27
.................
4,000,000
4,058,375
Transit
System,
Revenue,
2019,
Refunding,
4%,
7/01/35
....................
13,890,000
15,782,447
Water
&
Sewer
System,
Revenue,
2013
B,
Pre-Refunded,
5%,
10/01/27
........
15,000,000
15,930,285
County
of
Palm
Beach
,
Water
&
Sewer
,
Revenue
,
2013
,
Pre-Refunded
,
5
%
,
10/01/28
1,240,000
1,316,904
Escambia
County
Health
Facilities
Authority
,
Baptist
Health
Care
Corp.
Obligated
Group
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
8/15/34
.........................
1,000,000
1,188,797
Greater
Orlando
Aviation
Authority
,
Revenue,
2019
A,
5%,
10/01/34
.......................................
15,560,000
18,500,299
Revenue,
2019
A,
4%,
10/01/35
.......................................
5,000,000
5,516,396
Herons
Glen
Recreation
District
,
Special
Assessment,
2020,
Refunding,
BAM
Insured,
3%,
5/01/32
.............
185,000
194,052
Special
Assessment,
2020,
Refunding,
BAM
Insured,
3%,
5/01/33
.............
300,000
314,357
Special
Assessment,
2020,
Refunding,
BAM
Insured,
3%,
5/01/34
.............
245,000
256,476
Special
Assessment,
2020,
Refunding,
BAM
Insured,
3%,
5/01/35
.............
255,000
266,649
Special
Assessment,
2020,
Refunding,
BAM
Insured,
3%,
5/01/36
.............
260,000
271,618
JEA
Water
&
Sewer
System
,
Revenue,
2014
A,
Pre-Refunded,
5%,
10/01/26
...........................
1,530,000
1,646,624
Revenue,
2014
A,
5%,
10/01/26
.......................................
1,455,000
1,569,188
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
48
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
JEA
Water
&
Sewer
System,
(continued)
Revenue,
2014
A,
Pre-Refunded,
5%,
10/01/27
...........................
$
5,375,000
$
5,784,707
Revenue,
2014
A,
5%,
10/01/27
.......................................
5,130,000
5,527,089
Revenue,
2014
A,
Pre-Refunded,
5%,
10/01/29
...........................
1,265,000
1,361,424
Revenue,
2014
A,
5%,
10/01/29
.......................................
1,205,000
1,295,947
Revenue,
2017
A,
Refunding,
5%,
10/01/31
..............................
17,435,000
20,552,955
Lee
Memorial
Health
System
,
Lee
Memorial
Health
System
Obligated
Group
,
Revenue
,
A-1
,
Refunding
,
4
%
,
4/01/37
.........................................
5,000,000
5,605,349
Leon
County
School
District
,
Revenue
,
2014
,
5
%
,
9/01/25
.....................
6,040,000
6,398,214
Orange
County
Health
Facilities
Authority
,
Orlando
Health
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
10/01/28
.....
1,000,000
1,147,546
Orlando
Health
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
10/01/30
.....
2,875,000
3,278,728
Orlando
Utilities
Commission
,
Revenue,
2012
A,
Refunding,
5%,
10/01/24
..............................
2,405,000
2,634,565
Revenue,
2012
A,
Refunding,
5%,
10/01/25
..............................
2,000,000
2,257,200
Revenue,
2018
A,
5%,
10/01/33
.......................................
1,755,000
2,060,663
Orlando-Orange
County
Expressway
Authority
,
Central
Florida
Expressway
Authority
,
Revenue
,
2013
B
,
Pre-Refunded
,
AGMC
Insured
,
5
%
,
7/01/24
................
14,650,000
15,420,186
Palm
Beach
County
Health
Facilities
Authority
,
Baptist
Health
South
Florida
Obligated
Group
,
Revenue
,
2019
,
4
%
,
8/15/49
....................................
11,895,000
12,897,207
Palm
Beach
County
School
District
,
COP
,
2014
B
,
5
%
,
8/01/25
.................
4,000,000
4,484,048
River
Hall
Community
Development
District
,
Special
Assessment
,
2021
A-1
,
Refunding
,
3
%
,
5/01/31
......................................................
500,000
489,760
State
of
Florida
,
GO,
2015
E,
Refunding,
4%,
6/01/33
...................................
11,855,000
12,795,144
GO,
2017
C,
Refunding,
4%,
6/01/32
...................................
12,855,000
14,355,753
GO,
2017
C,
Refunding,
4%,
6/01/33
...................................
5,000,000
5,578,393
Tohopekaliga
Water
Authority
,
Revenue
,
2016
,
Refunding
,
4
%
,
10/01/32
..........
2,855,000
3,164,091
295,194,859
Georgia
2.0%
City
of
Atlanta
,
Airport
Passenger
Facility
Charge,
Revenue,
Sub.
Lien,
2014
A,
Refunding,
5%,
1/01/27
........................................................
7,000,000
7,463,539
Airport
Passenger
Facility
Charge,
Revenue,
Sub.
Lien,
2014
A,
Refunding,
5%,
1/01/28
........................................................
5,100,000
5,437,722
Water
&
Wastewater,
Revenue,
2015,
Refunding,
5%,
11/01/26
...............
5,165,000
5,750,741
Water
&
Wastewater,
Revenue,
2018
C,
Refunding,
5%,
11/01/33
..............
6,750,000
8,016,614
Water
&
Wastewater,
Revenue,
2018
C,
Refunding,
5%,
11/01/34
..............
3,000,000
3,562,063
Cobb
County
Kennestone
Hospital
Authority
,
WellStar
Health
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
4/01/32
1,150,000
1,290,093
WellStar
Health
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
4/01/33
815,000
913,371
WellStar
Health
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
4/01/34
725,000
811,763
WellStar
Health
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
4/01/35
1,140,000
1,275,044
WellStar
Health
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
4/01/36
1,675,000
1,871,738
Development
Authority
for
Fulton
County
,
Spelman
College,
Revenue,
2015,
Refunding,
5%,
6/01/28
...................
3,785,000
4,175,526
Spelman
College,
Revenue,
2015,
Refunding,
5%,
6/01/29
...................
4,385,000
4,831,583
Spelman
College,
Revenue,
2015,
Refunding,
5%,
6/01/30
...................
4,805,000
5,292,756
b
Development
Authority
of
Monroe
County
(The)
,
Georgia
Power
Co.
,
Revenue,
First
Series
,
2009
,
Refunding
,
Mandatory
Put
,
1
%
,
8/21/26
......................
2,375,000
2,302,096
Gainesville
&
Hall
County
Hospital
Authority
,
Northeast
Georgia
Health
System
Obligated
Group,
Revenue,
A,
Refunding,
5%,
2/15/27
........................................................
1,750,000
2,019,212
Northeast
Georgia
Health
System
Obligated
Group,
Revenue,
A,
Refunding,
5%,
2/15/28
........................................................
2,100,000
2,428,454
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
49
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Georgia
(continued)
Gainesville
&
Hall
County
Hospital
Authority,
(continued)
Northeast
Georgia
Health
System
Obligated
Group,
Revenue,
A,
Refunding,
5%,
2/15/29
........................................................
$
2,000,000
$
2,308,698
Northeast
Georgia
Health
System
Obligated
Group,
Revenue,
A,
Refunding,
5%,
2/15/30
........................................................
1,000,000
1,152,296
Main
Street
Natural
Gas,
Inc.
,
Revenue
,
2021
C
,
4
%
,
12/01/25
.................
1,000,000
1,078,875
Municipal
Electric
Authority
of
Georgia
,
Revenue,
2019
A,
5%,
1/01/30
........................................
1,000,000
1,184,044
Revenue,
2019
A,
5%,
1/01/31
........................................
1,300,000
1,534,574
Revenue,
2019
A,
5%,
1/01/32
........................................
1,250,000
1,472,695
Revenue,
2019
A,
5%,
1/01/33
........................................
1,000,000
1,174,440
Revenue,
2019
B,
5%,
1/01/29
........................................
500,000
589,173
Revenue,
2019
B,
5%,
1/01/30
........................................
480,000
566,771
Revenue,
2019
B,
5%,
1/01/33
........................................
1,045,000
1,225,935
Revenue,
2019
B,
5%,
1/01/34
........................................
700,000
818,795
70,548,611
Hawaii
0.9%
State
of
Hawaii
,
GO,
EO,
5%,
8/01/28
...............................................
21,695,000
23,561,833
GO,
EO,
Pre-Refunded,
5%,
8/01/28
...................................
3,305,000
3,599,291
Airports
System,
Revenue,
2020
A,
4%,
7/01/35
...........................
4,420,000
4,890,180
32,051,304
Illinois
5.4%
Chicago
O'Hare
International
Airport
,
Revenue,
Senior
Lien,
2020
C,
Refunding,
4%,
1/01/35
.....................
5,560,000
6,218,428
Chicago
Park
District
,
GO,
2020
F-2,
Refunding,
5%,
1/01/32
..................................
1,500,000
1,798,129
GO,
2020
F-2,
Refunding,
5%,
1/01/33
..................................
3,000,000
3,592,169
GO,
2020
F-2,
Refunding,
4%,
1/01/34
..................................
1,100,000
1,216,604
GO,
2020
F-2,
Refunding,
5%,
1/01/35
..................................
2,375,000
2,838,430
Chicago
Transit
Authority
Capital
Grant
Receipts
,
Revenue
,
2021
,
Refunding
,
5
%
,
6/01/28
.........................................................
1,750,000
2,087,943
City
of
Berwyn
,
GO
,
2022
B
,
Refunding
,
AGMC
Insured
,
4
%
,
12/01/41
...........
6,000,000
6,817,885
City
of
Chicago
,
GO,
1999,
NATL
Insured,
Zero
Cpn.,
1/01/31
.............................
4,350,000
3,473,243
GO,
2003
B,
Refunding,
5%,
1/01/26
...................................
1,795,000
1,950,942
GO,
2020
A,
Refunding,
5%,
1/01/28
...................................
4,000,000
4,553,549
GO,
2020
A,
Refunding,
5%,
1/01/29
...................................
2,500,000
2,872,266
City
of
Galesburg
,
Knox
College,
Revenue,
2021
A,
Refunding,
4%,
10/01/36
...................
1,125,000
1,230,729
Knox
College,
Revenue,
2021
A,
Refunding,
4%,
10/01/41
...................
1,475,000
1,589,079
County
of
Cook
,
Sales
Tax
,
Revenue
,
2021
A
,
Refunding
,
4
%
,
11/15/40
...........
5,250,000
5,883,310
b
Illinois
Development
Finance
Authority
,
Waste
Management,
Inc.
,
Revenue
,
2019
,
Mandatory
Put
,
0.4
%
,
11/01/22
.......................................
5,000,000
4,969,987
Illinois
Finance
Authority
,
Carle
Foundation
Obligated
Group
(The),
Revenue,
2021
A,
Refunding,
4%,
8/15/41
14,200,000
16,057,063
Christian
Homes,
Inc.
Obligated
Group,
Revenue,
2021
A,
4%,
5/15/28
.........
1,065,000
1,172,958
Christian
Homes,
Inc.
Obligated
Group,
Revenue,
2021
A,
4%,
5/15/29
.........
1,100,000
1,216,517
Christian
Homes,
Inc.
Obligated
Group,
Revenue,
2021
A,
4%,
5/15/30
.........
1,310,000
1,454,878
Christian
Homes,
Inc.
Obligated
Group,
Revenue,
2021
A,
4%,
5/15/31
.........
1,095,000
1,211,586
Northwestern
University,
Revenue,
2015,
5%,
12/01/28
.....................
1,675,000
2,037,655
Metropolitan
Pier
&
Exposition
Authority
,
c
Revenue,
2022
A,
Refunding,
3%,
6/15/25
...............................
2,000,000
2,056,279
Revenue,
B,
Pre-Refunded,
5%,
6/15/23
................................
600,000
607,304
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
50
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Illinois
(continued)
Northern
Illinois
University
,
Revenue,
2021,
BAM
Insured,
4%,
10/01/41
.............................
$
400,000
$
445,297
Revenue,
2021,
BAM
Insured,
4%,
10/01/43
.............................
2,075,000
2,299,443
Railsplitter
Tobacco
Settlement
Authority
,
Revenue
,
2017
,
5
%
,
6/01/26
...........
3,500,000
3,926,347
State
of
Illinois
,
GO,
2013
A,
AGMC
Insured,
5%,
4/01/25
................................
18,000,000
18,763,778
GO,
2014,
AGMC
Insured,
5%,
2/01/26
.................................
5,650,000
6,057,199
GO,
2016,
Refunding,
5%,
2/01/26
.....................................
1,000,000
1,115,382
GO,
2016,
Refunding,
5%,
2/01/28
.....................................
3,015,000
3,407,664
GO,
2016,
Refunding,
5%,
2/01/29
.....................................
2,250,000
2,533,646
GO,
2017
C,
5%,
11/01/29
...........................................
5,675,000
6,487,435
GO,
2017
D,
3.25%,
11/01/26
.........................................
750,000
789,990
GO,
2017
D,
5%,
11/01/27
...........................................
1,500,000
1,725,116
GO,
2018
A,
Refunding,
5%,
10/01/28
..................................
1,500,000
1,752,160
GO,
2018
A,
Refunding,
5%,
10/01/29
..................................
1,125,000
1,310,621
GO,
2018
B,
Refunding,
5%,
10/01/31
..................................
1,875,000
2,154,011
GO,
2018
B,
Refunding,
5%,
10/01/32
..................................
1,120,000
1,282,112
GO,
2019
B,
5%,
11/01/30
...........................................
1,125,000
1,324,759
GO,
2019
B,
4%,
11/01/38
...........................................
1,030,000
1,103,302
GO,
2020,
5.5%,
5/01/30
............................................
6,550,000
7,912,085
GO,
2020,
5.5%,
5/01/39
............................................
3,700,000
4,419,426
GO,
2020
C,
4%,
10/01/37
...........................................
8,170,000
8,828,844
GO,
2021
A,
5%,
3/01/46
............................................
2,000,000
2,313,723
GO,
2021
B,
4%,
12/01/39
...........................................
2,500,000
2,712,042
Sales
Tax,
Revenue,
2021
A,
4%,
6/15/25
...............................
5,000,000
5,374,339
Sales
Tax,
Revenue,
Junior
Lien,
2021
C,
Refunding,
5%,
6/15/26
.............
2,500,000
2,828,119
Sales
Tax,
Revenue,
Junior
Lien,
2021
C,
Refunding,
5%,
6/15/27
.............
6,000,000
6,888,652
Sales
Tax,
Revenue,
Junior
Lien,
2021
C,
Refunding,
5%,
6/15/28
.............
5,000,000
5,814,960
d
Upper
Illinois
River
Valley
Development
Authority
,
2018
IAVF
Timber
Oaks
&
Prairie
View
Obligated
Group
,
Revenue
,
144A,
2020
A
,
Refunding
,
3.5
%
,
12/01/32
......
6,400,000
6,275,425
186,752,810
Indiana
1.1%
d
City
of
Goshen
,
Green
Oaks
of
Goshen
LLC
,
Revenue
,
144A,
2021
B
,
4.75
%
,
8/01/24
1,560,000
1,534,009
Indiana
Finance
Authority
,
c
Greencroft
Goshen
Obligated
Group,
Revenue,
2023
A,
Refunding,
4%,
11/15/26
..
1,065,000
1,087,717
c
Greencroft
Goshen
Obligated
Group,
Revenue,
2023
A,
Refunding,
4%,
11/15/27
..
1,150,000
1,173,358
c
Greencroft
Goshen
Obligated
Group,
Revenue,
2023
A,
Refunding,
4%,
11/15/28
..
1,235,000
1,256,588
c
Greencroft
Goshen
Obligated
Group,
Revenue,
2023
A,
Refunding,
4%,
11/15/29
..
1,330,000
1,346,817
c
Greencroft
Goshen
Obligated
Group,
Revenue,
2023
A,
Refunding,
4%,
11/15/30
..
1,425,000
1,437,436
Indianapolis
Power
&
Light
Co.,
Revenue,
2021
A,
Refunding,
1.4%,
8/01/29
.....
3,000,000
2,793,882
State
Revolving
Fund,
Revenue,
2018
A,
5%,
2/01/35
......................
9,795,000
11,705,192
Indianapolis
Local
Public
Improvement
Bond
Bank
,
Revenue
,
2021
A
,
Refunding
,
AGMC
Insured
,
4
%
,
6/01/41
..........................................
15,265,000
17,262,807
39,597,806
Iowa
0.8%
Iowa
Higher
Education
Loan
Authority
,
Des
Moines
University
Osteopathic
Medical
Center,
Revenue,
2020,
5%,
10/01/31
.
1,800,000
2,148,239
Des
Moines
University
Osteopathic
Medical
Center,
Revenue,
2020,
5%,
10/01/32
.
1,920,000
2,287,952
Des
Moines
University
Osteopathic
Medical
Center,
Revenue,
2020,
5%,
10/01/33
.
2,030,000
2,418,425
Des
Moines
University
Osteopathic
Medical
Center,
Revenue,
2020,
5%,
10/01/34
.
2,135,000
2,540,858
Des
Moines
University
Osteopathic
Medical
Center,
Revenue,
2020,
5%,
10/01/35
.
1,250,000
1,484,028
Des
Moines
University
Osteopathic
Medical
Center,
Revenue,
2020,
5%,
10/01/36
.
2,470,000
2,927,249
Des
Moines
University
Osteopathic
Medical
Center,
Revenue,
2020,
5%,
10/01/37
.
2,595,000
3,069,537
Iowa
Tobacco
Settlement
Authority
,
Revenue,
2021
A-2,
1,
Refunding,
4%,
6/01/49
............................
8,500,000
9,096,518
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
51
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Iowa
(continued)
Iowa
Tobacco
Settlement
Authority,
(continued)
Revenue,
2021
B-1,
2,
Refunding,
4%,
6/01/49
...........................
$
1,500,000
$
1,595,342
27,568,148
Kansas
0.2%
State
of
Kansas
,
Department
of
Transportation
,
Revenue
,
2014
A
,
5
%
,
9/01/28
.....
8,000,000
8,708,073
Kentucky
1.0%
Eastern
Kentucky
University
,
Revenue,
2021
A,
Refunding,
4%,
10/01/29
..............................
1,355,000
1,539,117
Revenue,
2021
A,
Refunding,
4%,
10/01/30
..............................
1,410,000
1,616,734
Revenue,
2021
A,
Refunding,
4%,
10/01/31
..............................
1,470,000
1,698,461
Kentucky
Economic
Development
Finance
Authority
,
CommonSpirit
Health
Obligated
Group
,
Revenue
,
2019
A-1
,
Refunding
,
5
%
,
8/01/34
........................
1,000,000
1,180,858
Kentucky
Municipal
Power
Agency
,
Revenue,
2016
A,
Refunding,
NATL
Insured,
5%,
9/01/34
....................
1,500,000
1,709,400
Revenue,
2019
A,
Refunding,
5%,
9/01/31
...............................
1,500,000
1,765,916
Revenue,
2019
A,
Refunding,
5%,
9/01/32
...............................
1,600,000
1,881,214
Revenue,
2019
A,
Refunding,
5%,
9/01/33
...............................
1,000,000
1,172,864
Kentucky
State
Property
&
Building
Commission
,
Kentucky
Finance
and
Administration
Cabinet
,
Revenue
,
BAM
Insured
,
5
%
,
5/01/32
............................
2,000,000
2,378,463
Kentucky
Turnpike
Authority
,
Kentucky
Transportation
Cabinet,
Revenue,
B,
Refunding,
5%,
7/01/26
.........
2,570,000
2,938,942
Kentucky
Transportation
Cabinet,
Revenue,
B,
Refunding,
5%,
7/01/28
.........
3,000,000
3,508,500
Paducah
Electric
Plant
Board
,
Revenue,
2016
A,
Refunding,
AGMC
Insured,
5%,
10/01/29
..................
5,500,000
6,321,995
Revenue,
2016
A,
Refunding,
AGMC
Insured,
5%,
10/01/31
..................
5,500,000
6,319,370
34,031,834
Louisiana
2.8%
East
Baton
Rouge
Sewerage
Commission
,
Revenue,
2019
A,
Refunding,
4%,
2/01/35
...............................
1,310,000
1,492,229
Revenue,
2019
A,
Refunding,
4%,
2/01/36
...............................
2,000,000
2,269,489
Revenue,
2019
B,
Refunding,
5%,
2/01/32
...............................
2,000,000
2,578,070
Jefferson
Sales
Tax
District
,
Revenue
,
2019
B
,
AGMC
Insured
,
4
%
,
12/01/36
.......
7,000,000
8,046,848
Lafayette
Consolidated
Government
,
Revenue,
2015,
Refunding,
AGMC
Insured,
5%,
11/01/25
...................
2,400,000
2,702,260
Revenue,
2015,
Refunding,
AGMC
Insured,
5%,
11/01/27
...................
3,500,000
3,942,131
Revenue,
2015,
Refunding,
AGMC
Insured,
5%,
11/01/29
...................
4,685,000
5,258,979
d
Louisiana
Local
Government
Environmental
Facilities
&
Community
Development
Authority
,
City
of
New
Orleans,
Revenue,
144A,
2021,
4%,
11/01/46
...................
10,000,000
10,302,581
Invest
in
Americas
Veterans
Foundation
Louisiana,
Inc.,
Revenue,
144A,
2020
A,
Refunding,
3.5%,
12/01/32
.........................................
1,960,000
1,921,849
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A,
3.75%,
10/01/38
4,592,712
4,367,428
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
B,
5.25%,
10/01/32
5,350,000
5,234,838
Louisiana
Public
Facilities
Authority
,
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2016,
Pre-Refunded,
5%,
5/15/29
........................................................
10,000
11,381
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2016,
5%,
5/15/29
.......
1,240,000
1,401,968
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2016,
Pre-Refunded,
5%,
5/15/30
........................................................
5,000
5,691
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2016,
5%,
5/15/30
.......
995,000
1,121,520
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2016,
Pre-Refunded,
5%,
5/15/32
........................................................
15,000
17,072
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2016,
5%,
5/15/32
.......
1,485,000
1,667,424
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
5/15/28
1,000,000
1,167,795
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
52
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Louisiana
(continued)
Louisiana
Public
Facilities
Authority,
(continued)
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
5/15/29
$
2,000,000
$
2,323,657
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
5/15/30
2,250,000
2,601,980
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
5/15/31
1,745,000
2,012,359
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
5/15/32
1,750,000
2,014,377
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
5/15/33
2,000,000
2,295,736
Tulane
University,
Revenue,
2020
A,
Refunding,
5%,
4/01/36
.................
4,750,000
5,748,163
Tulane
University,
Revenue,
2020
A,
Refunding,
5%,
4/01/37
.................
2,000,000
2,417,821
Tulane
University,
Revenue,
2020
A,
Refunding,
5%,
4/01/38
.................
3,120,000
3,765,090
b
Parish
of
St.
John
the
Baptist
,
Marathon
Oil
Corp.
,
Revenue
,
2017
B-2
,
Refunding
,
Mandatory
Put
,
2.375
%
,
7/01/26
......................................
2,500,000
2,526,210
Port
New
Orleans
Board
of
Commissioners
,
Revenue,
2020
E,
5%,
4/01/35
........................................
1,000,000
1,187,531
Revenue,
2020
E,
5%,
4/01/36
........................................
1,495,000
1,773,806
Revenue,
2020
E,
5%,
4/01/37
........................................
1,065,000
1,262,335
Revenue,
2020
E,
5%,
4/01/38
........................................
1,000,000
1,183,190
Revenue,
2020
E,
5%,
4/01/39
........................................
2,750,000
3,248,132
State
of
Louisiana
,
GO
,
2014
C
,
Refunding
,
5
%
,
8/01/25
......................
10,000,000
10,895,442
98,765,382
Maine
0.2%
Maine
Health
&
Higher
Educational
Facilities
Authority
,
MaineHealth
Obligated
Group,
Revenue,
2020
A,
5%,
7/01/35
................
1,000,000
1,228,887
MaineHealth
Obligated
Group,
Revenue,
2020
A,
4%,
7/01/36
................
1,000,000
1,132,509
MaineHealth
Obligated
Group,
Revenue,
2020
A,
4%,
7/01/37
................
1,150,000
1,299,512
MaineHealth
Obligated
Group,
Revenue,
2020
A,
4%,
7/01/38
................
2,690,000
3,029,696
6,690,604
Maryland
2.6%
City
of
Baltimore
,
Wastewater
Utility
Fund,
Revenue,
2017
A,
5%,
7/01/29
.....................
1,000,000
1,161,486
Wastewater
Utility
Fund,
Revenue,
2017
A,
5%,
7/01/30
.....................
2,940,000
3,406,051
Wastewater
Utility
Fund,
Revenue,
2017
A,
5%,
7/01/31
.....................
2,085,000
2,410,648
Wastewater
Utility
Fund,
Revenue,
2017
A,
5%,
7/01/32
.....................
3,240,000
3,741,854
Wastewater
Utility
Fund,
Revenue,
2017
C,
Refunding,
5%,
7/01/30
............
6,450,000
7,498,565
Wastewater
Utility
Fund,
Revenue,
2017
C,
Refunding,
5%,
7/01/32
............
5,905,000
6,852,414
Wastewater
Utility
Fund,
Revenue,
Senior
Lien,
D,
Refunding,
5%,
7/01/28
......
2,790,000
3,070,886
Wastewater
Utility
Fund,
Revenue,
Senior
Lien,
D,
Refunding,
5%,
7/01/29
......
5,835,000
6,422,759
Water
Utility
Fund,
Revenue,
2017
A,
5%,
7/01/29
.........................
1,320,000
1,533,161
Water
Utility
Fund,
Revenue,
2017
A,
5%,
7/01/30
.........................
1,785,000
2,067,959
Water
Utility
Fund,
Revenue,
2017
A,
5%,
7/01/31
.........................
3,765,000
4,353,041
Water
Utility
Fund,
Revenue,
2017
A,
5%,
7/01/32
.........................
4,000,000
4,619,572
County
of
Anne
Arundel
,
GO
,
2015
,
5
%
,
4/01/29
............................
7,495,000
8,319,002
Maryland
Community
Development
Administration
,
Residential
,
Revenue
,
2019
B
,
Refunding
,
3
%
,
9/01/34
.............................................
5,000,000
5,170,119
Maryland
Health
&
Higher
Educational
Facilities
Authority
,
Frederick
Health,
Inc.
Obligated
Group,
Revenue,
2020,
Refunding,
3.25%,
7/01/39
500,000
515,883
Frederick
Health,
Inc.
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
7/01/40
..
300,000
334,554
University
of
Maryland
Medical
System
Obligated
Group,
Revenue,
2017
B,
Refunding,
5%,
7/01/30
............................................
8,520,000
9,926,286
University
of
Maryland
Medical
System
Obligated
Group,
Revenue,
2017
B,
Refunding,
5%,
7/01/31
............................................
7,415,000
8,622,482
Town
of
Chestertown
,
Washington
College,
Revenue,
2021
A,
Refunding,
5%,
3/01/28
...............
1,000,000
1,160,929
Washington
College,
Revenue,
2021
A,
Refunding,
5%,
3/01/29
...............
1,340,000
1,573,619
Washington
College,
Revenue,
2021
A,
Refunding,
5%,
3/01/30
...............
2,810,000
3,336,436
Washington
College,
Revenue,
2021
A,
Refunding,
5%,
3/01/31
...............
1,480,000
1,777,246
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
53
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Maryland
(continued)
Town
of
Chestertown,
(continued)
Washington
College,
Revenue,
2021
A,
Refunding,
5%,
3/01/32
...............
$
1,550,000
$
1,851,464
89,726,416
Massachusetts
3.5%
Commonwealth
of
Massachusetts
,
GO,
A,
Refunding,
5%,
7/01/28
.......................................
7,500,000
8,393,297
GO,
A,
Refunding,
5%,
7/01/29
.......................................
6,000,000
6,715,021
Massachusetts
Clean
Energy
Cooperative
Corp.
,
Revenue,
2021,
Refunding,
2.135%,
7/01/29
.............................
5,000,000
4,881,506
Revenue,
2021,
Refunding,
2.235%,
7/01/30
.............................
6,420,000
6,265,282
Massachusetts
Clean
Water
Trust
(The)
,
Revenue,
17
A,
5%,
2/01/24
..........................................
9,380,000
9,729,208
Revenue,
17
A,
5%,
2/01/25
..........................................
9,750,000
10,117,009
Revenue,
2014,
Refunding,
5%,
8/01/26
.................................
10,650,000
12,323,390
Massachusetts
Development
Finance
Agency
,
Wellforce
Obligated
Group,
Revenue,
2020
C,
Refunding,
AGMC
Insured,
5%,
10/01/30
.......................................................
150,000
185,961
Wellforce
Obligated
Group,
Revenue,
2020
C,
Refunding,
AGMC
Insured,
5%,
10/01/31
.......................................................
475,000
587,155
Wellforce
Obligated
Group,
Revenue,
2020
C,
Refunding,
AGMC
Insured,
5%,
10/01/32
.......................................................
450,000
555,396
Wellforce
Obligated
Group,
Revenue,
2020
C,
Refunding,
AGMC
Insured,
5%,
10/01/33
.......................................................
525,000
647,333
Wellforce
Obligated
Group,
Revenue,
2020
C,
Refunding,
AGMC
Insured,
5%,
10/01/34
.......................................................
450,000
554,274
Massachusetts
Port
Authority
,
Revenue,
2019
C,
5%,
7/01/32
........................................
4,220,000
5,044,089
Revenue,
2019
C,
5%,
7/01/33
........................................
4,430,000
5,290,478
Massachusetts
School
Building
Authority
,
Revenue,
2012
B,
Pre-Refunded,
5%,
8/15/27
............................
235,000
239,546
Revenue,
2012
B,
Pre-Refunded,
5%,
8/15/27
............................
5,765,000
5,879,192
Revenue,
Senior
Lien,
2012
A,
Pre-Refunded,
5%,
8/15/25
...................
1,870,000
1,906,609
Revenue,
Senior
Lien,
2012
A,
Pre-Refunded,
5%,
8/15/26
...................
495,000
504,576
Massachusetts
Transportation
Trust
Fund
,
Metropolitan
Highway
System
,
Revenue,
Senior
Lien
,
2019
A
,
Refunding
,
5
%
,
1/01/35
.............................
7,000,000
8,400,621
Massachusetts
Water
Resources
Authority
,
Revenue
,
C
,
Refunding
,
5
%
,
8/01/32
....
13,920,000
16,379,546
University
of
Massachusetts
Building
Authority
,
Revenue,
2017-3,
Refunding,
5%,
11/01/31
..............................
10,035,000
11,878,177
Revenue,
2017-3,
Refunding,
5%,
11/01/32
..............................
5,000,000
5,900,555
122,378,221
Michigan
2.1%
Lansing
Board
of
Water
&
Light
,
Revenue
,
2019
A
,
5
%
,
7/01/36
.................
4,645,000
5,666,159
Lansing
School
District
,
GO,
2016
I,
5%,
5/01/30
.............................................
1,860,000
2,121,059
GO,
2016
I,
5%,
5/01/31
.............................................
2,010,000
2,290,366
GO,
2016
I,
5%,
5/01/32
.............................................
2,310,000
2,630,208
Michigan
Finance
Authority
,
Clean
Water
Revolving
Fund,
Revenue,
2012,
Pre-Refunded,
5%,
10/01/24
......
12,000,000
12,298,924
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
A,
1,
Refunding,
4%,
6/01/35
...
1,000,000
1,117,236
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2016
MI,
Refunding,
5%,
12/01/34
8,200,000
9,299,096
Michigan
State
Hospital
Finance
Authority
,
Ascension
Health
Credit
Group,
Revenue,
1999
B-3,
4%,
11/15/31
.............
5,100,000
5,750,374
Michigan
Finance
Authority,
Revenue,
2008
C,
5%,
12/01/32
.................
1,115,000
1,302,494
Michigan
Finance
Authority,
Revenue,
2008
C,
Pre-Refunded,
5%,
12/01/32
......
135,000
160,314
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2008
C,
Refunding,
5%,
12/01/31
.
2,700,000
3,157,228
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
54
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Michigan
(continued)
Michigan
State
Hospital
Finance
Authority,
(continued)
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2012
MI,
Refunding,
5%,
12/01/24
$
8,000,000
$
8,087,990
Michigan
State
Housing
Development
Authority
,
Revenue
,
2019
A-1
,
3
%
,
10/01/39
..
3,500,000
3,558,818
b
Michigan
Strategic
Fund
,
Consumers
Energy
Co.
,
Revenue
,
2005
,
Mandatory
Put
,
0.875
%
,
10/08/26
..................................................
5,000,000
4,881,322
d
Wayne
County
Airport
Authority
,
Detroit
Metropolitan
Wayne
County
Airport
,
Revenue
,
144A,
2017
E
,
Refunding
,
4
%
,
12/01/27
.................................
10,785,000
11,921,101
74,242,689
Mississippi
0.3%
Mississippi
Home
Corp.
,
d
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A-5,
4%,
6/01/46
..
8,143,623
7,286,884
Patriot
Services
Group
Pascagoula
Portfolio
II
Obligated
Group,
Revenue,
2021
D-8,
3.65%,
6/01/33
..................................................
101,412
95,892
Patriot
Services
Group
Pascagoula
Portfolio
II
Obligated
Group,
Revenue,
2021
D-8,
4.15%,
6/01/46
..................................................
400,000
366,565
d
Patriot
Services
Group
Pascagoula
Portfolio
II
Obligated
Group,
Revenue,
144A,
2021
E-8,
5.5%,
6/01/36
...........................................
2,540,000
2,469,245
10,218,586
Missouri
1.2%
Health
&
Educational
Facilities
Authority
of
the
State
of
Missouri
,
Mercy
Health
,
Revenue
,
2018
A
,
Refunding
,
5
%
,
6/01/31
...............................
12,500,000
14,914,765
Missouri
Joint
Municipal
Electric
Utility
Commission
,
Revenue,
2014
A,
Refunding,
5%,
1/01/27
...............................
3,250,000
3,555,935
Revenue,
2014
A,
Refunding,
5%,
1/01/28
...............................
4,500,000
4,920,981
Revenue,
2014
A,
Refunding,
5%,
1/01/29
...............................
4,045,000
4,422,238
Southeast
Missouri
State
University
,
Revenue,
2020,
Refunding,
4%,
4/01/33
.................................
2,745,000
3,012,717
Revenue,
2020,
Refunding,
4%,
4/01/34
.................................
2,180,000
2,390,427
Revenue,
2020,
Refunding,
4%,
4/01/35
.................................
1,575,000
1,725,163
Revenue,
2020,
Refunding,
4%,
4/01/36
.................................
3,205,000
3,507,428
Revenue,
2020,
Refunding,
4%,
4/01/37
.................................
2,000,000
2,184,937
40,634,591
Nebraska
0.1%
Nebraska
Public
Power
District
,
Revenue
,
2021
C
,
Refunding
,
5
%
,
1/01/24
........
4,500,000
4,814,953
Nevada
0.2%
Washoe
County
School
District
,
GO
,
2012
A
,
Refunding
,
5
%
,
6/01/25
............
6,130,000
6,196,029
New
Hampshire
0.2%
City
of
Manchester
,
General
Airport
,
Revenue
,
2012
A
,
Refunding
,
AGMC
Insured
,
5
%
,
1/01/25
.........................................................
7,930,000
8,020,239
New
Jersey
4.2%
Hudson
County
Improvement
Authority
,
County
of
Hudson,
Revenue,
2010,
Refunding,
AGMC
Insured,
5.375%,
10/01/22
.
5,220,000
5,359,492
County
of
Hudson,
Revenue,
2010,
Refunding,
AGMC
Insured,
5.375%,
10/01/23
.
5,375,000
5,731,090
County
of
Hudson,
Revenue,
2010,
Refunding,
AGMC
Insured,
5.375%,
10/01/24
.
2,050,000
2,260,733
New
Jersey
Economic
Development
Authority
,
Revenue,
1997
A,
NATL
Insured,
7.425%,
2/15/29
.........................
12,675,000
15,504,093
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2019
LLL,
5%,
6/15/39
1,000,000
1,161,066
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
AAA,
5%,
6/15/34
....
5,000,000
5,653,110
New
Jersey
Educational
Facilities
Authority
,
State
of
New
Jersey,
Revenue,
2016
B,
5%,
9/01/36
.......................
5,000,000
5,600,678
Stevens
Institute
of
Technology,
Revenue,
2020
A,
5%,
7/01/32
...............
420,000
500,937
Stevens
Institute
of
Technology,
Revenue,
2020
A,
5%,
7/01/33
...............
680,000
810,819
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
55
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
New
Jersey
(continued)
New
Jersey
Educational
Facilities
Authority,
(continued)
Stevens
Institute
of
Technology,
Revenue,
2020
A,
5%,
7/01/34
...............
$
545,000
$
649,218
Stevens
Institute
of
Technology,
Revenue,
2020
A,
5%,
7/01/35
...............
565,000
671,884
New
Jersey
Health
Care
Facilities
Financing
Authority
,
Inspira
Health
Obligated
Group,
Revenue,
2017
A,
5%,
7/01/30
...............
900,000
1,048,053
Inspira
Health
Obligated
Group,
Revenue,
2017
A,
5%,
7/01/31
...............
1,080,000
1,257,065
New
Jersey
Higher
Education
Student
Assistance
Authority
,
Revenue,
Senior
Lien,
2020
A,
Refunding,
3.5%,
12/01/39
...................
4,300,000
4,412,803
Revenue,
Senior
Lien,
2020
B,
3.5%,
12/01/39
............................
2,000,000
2,052,466
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue,
2006
A,
AGMC
Insured,
5.5%,
12/15/22
.........................
11,465,000
11,888,024
Revenue,
2020
AA,
4%,
6/15/35
.......................................
2,000,000
2,197,092
Revenue,
2020
AA,
4%,
6/15/36
.......................................
4,000,000
4,382,991
c
Revenue,
2022
A,
4%,
6/15/40
........................................
10,000,000
10,907,661
c
Revenue,
2022
A,
4%,
6/15/42
........................................
7,000,000
7,591,005
New
Jersey
Turnpike
Authority
,
Revenue
,
2021
A
,
4
%
,
1/01/42
.................
1,800,000
2,023,370
Newark
Board
of
Education
,
GO,
2021,
Refunding,
BAM
Insured,
5%,
7/15/26
..........................
275,000
313,918
GO,
2021,
Refunding,
BAM
Insured,
5%,
7/15/27
..........................
330,000
384,605
GO,
2021,
Refunding,
BAM
Insured,
5%,
7/15/28
..........................
325,000
386,789
GO,
2021,
Refunding,
BAM
Insured,
5%,
7/15/29
..........................
320,000
388,103
GO,
2021,
Refunding,
BAM
Insured,
5%,
7/15/30
..........................
200,000
246,882
GO,
2021,
Refunding,
BAM
Insured,
5%,
7/15/31
..........................
400,000
502,216
GO,
2021,
Refunding,
BAM
Insured,
5%,
7/15/32
..........................
430,000
538,838
Rutgers
State
University
of
New
Jersey
(The)
,
Revenue,
2013
J,
Pre-Refunded,
5%,
5/01/26
............................
5,000,000
5,235,980
Revenue,
2013
J,
Pre-Refunded,
5%,
5/01/27
............................
16,100,000
16,859,856
State
of
New
Jersey
,
GO,
2020
A,
4%,
6/01/31
............................................
7,000,000
8,098,383
GO,
2020
A,
3%,
6/01/32
............................................
20,870,000
22,041,852
146,661,072
New
Mexico
0.4%
City
of
Farmington
,
Public
Service
Co.
of
New
Mexico
,
Revenue
,
2016
A
,
Refunding
,
2.15
%
,
4/01/33
...................................................
13,500,000
12,680,026
New
York
10.5%
City
of
New
York
,
GO,
2013
D,
5%,
8/01/27
............................................
10,000,000
10,366,135
GO,
2013
I,
5%,
8/01/24
.............................................
10,200,000
10,760,150
GO,
2014
G,
5%,
8/01/22
............................................
8,000,000
8,144,171
GO,
2014
G,
5%,
8/01/23
............................................
6,860,000
7,243,708
GO,
2015
C,
Refunding,
5%,
8/01/25
...................................
2,000,000
2,211,290
GO,
2015
C,
Refunding,
5%,
8/01/26
...................................
10,000,000
11,047,366
GO,
2015
C,
Refunding,
5%,
8/01/27
...................................
7,500,000
8,276,450
GO,
2019
E,
Refunding,
5%,
8/01/32
...................................
2,000,000
2,408,302
GO,
2019
E,
Refunding,
5%,
8/01/34
...................................
3,500,000
4,199,961
GO,
2021
C,
4%,
8/01/36
............................................
5,000,000
5,659,864
GO,
A-1
2017
A,
5%,
8/01/29
.........................................
10,000,000
11,446,376
County
of
Nassau
,
GO,
2021
A,
AGMC
Insured,
4%,
4/01/48
................................
7,140,000
8,065,856
GO,
2021
A,
AGMC
Insured,
4%,
4/01/49
................................
7,960,000
8,985,064
Erie
County
Industrial
Development
Agency
(The)
,
Buffalo
City
School
District,
Revenue,
2012
A,
Refunding,
5%,
5/01/23
..........
6,235,000
6,276,125
Buffalo
City
School
District,
Revenue,
2012
A,
Refunding,
5%,
5/01/24
..........
8,000,000
8,058,957
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
56
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
New
York
(continued)
Long
Island
Power
Authority
,
Revenue
,
2012
B
,
5
%
,
9/01/26
...................
$
5,000,000
$
5,100,387
Metropolitan
Transportation
Authority
,
Revenue,
2012
F,
Refunding,
5%,
11/15/25
..............................
25,000,000
25,664,340
Revenue,
2013
A,
Pre-Refunded,
5%,
11/15/27
...........................
3,500,000
3,670,673
b
Revenue,
2015
A-2,
Mandatory
Put,
5%,
5/15/30
..........................
7,000,000
8,388,038
Revenue,
2016
A-2,
Refunding,
5%,
11/15/25
.............................
21,090,000
23,584,879
Revenue,
2016
B,
Refunding,
5%,
11/15/34
..............................
3,265,000
3,658,074
Revenue,
2017
B,
Refunding,
5%,
11/15/26
..............................
2,140,000
2,444,623
Revenue,
2017
C-1,
Refunding,
5%,
11/15/31
............................
1,870,000
2,150,893
Revenue,
2017
C-1,
Refunding,
4%,
11/15/37
............................
2,500,000
2,683,564
Revenue,
2019
D-1,
5%,
9/01/22
......................................
10,000,000
10,203,565
Revenue,
2020
A-1,
AGMC
Insured,
4%,
11/15/41
.........................
6,045,000
6,676,845
New
York
City
Industrial
Development
Agency
,
Queens
Ballpark
Co.
LLC,
Revenue,
2021
A,
Refunding,
AGMC
Insured,
5%,
1/01/27
1,000,000
1,148,548
Queens
Ballpark
Co.
LLC,
Revenue,
2021
A,
Refunding,
AGMC
Insured,
5%,
1/01/28
1,000,000
1,172,469
Queens
Ballpark
Co.
LLC,
Revenue,
2021
A,
Refunding,
AGMC
Insured,
3%,
1/01/46
10,000,000
9,830,352
Yankee
Stadium
LLC,
Revenue,
2020
A,
Refunding,
AGMC
Insured,
3%,
3/01/36
..
2,500,000
2,554,472
New
York
City
Transitional
Finance
Authority
,
Future
Tax
Secured,
Revenue,
2014
D-1,
5%,
2/01/27
......................
8,740,000
9,359,636
Future
Tax
Secured,
Revenue,
2014
D-1,
5%,
2/01/28
......................
5,000,000
5,351,528
Future
Tax
Secured,
Revenue,
2020
C,
4%,
5/01/37
........................
1,400,000
1,589,788
New
York
Liberty
Development
Corp.
,
Revenue
,
2021
A
,
Refunding
,
0.95
%
,
11/15/27
2,340,000
2,194,384
New
York
State
Dormitory
Authority
,
Revenue,
2009
A,
AGMC
Insured,
5%,
10/01/24
...........................
220,000
220,810
City
University
of
New
York
(The),
Revenue,
2005
A,
NATL
Insured,
5.5%,
7/01/23
.
7,915,000
8,391,977
Northwell
Health
Obligated
Group,
Revenue,
2015
A,
Refunding,
5%,
5/01/29
....
10,000,000
11,030,651
State
of
New
York
Personal
Income
Tax,
Revenue,
2012
A,
Refunding,
5%,
12/15/27
10,000,000
10,336,314
State
of
New
York
Personal
Income
Tax,
Revenue,
2014
E,
Refunding,
5%,
2/15/30
5,000,000
5,503,898
State
of
New
York
Personal
Income
Tax,
Revenue,
2015
A,
Refunding,
5%,
3/15/28
7,185,000
7,934,397
State
of
New
York
Personal
Income
Tax,
Revenue,
2018
A,
Pre-Refunded,
5%,
3/15/32
........................................................
5,000
6,050
State
of
New
York
Personal
Income
Tax,
Revenue,
2018
A,
5%,
3/15/32
.........
9,995,000
11,995,648
State
of
New
York
Sales
Tax,
Revenue,
2018
E,
Refunding,
5%,
3/15/32
........
10,000,000
11,994,813
State
University
Construction
Fund,
Revenue,
2012
A,
5%,
5/15/24
............
7,000,000
7,062,119
New
York
State
Urban
Development
Corp.
,
State
of
New
York
Personal
Income
Tax,
Revenue,
2013
D,
5%,
3/15/24
.........
10,000,000
10,413,783
State
of
New
York
Personal
Income
Tax,
Revenue,
2020
A,
5%,
3/15/41
.........
5,000,000
6,118,007
New
York
Transportation
Development
Corp.
,
JFK
International
Air
Terminal
LLC,
Revenue,
2020
A,
Refunding,
5%,
12/01/34
...
450,000
525,760
JFK
International
Air
Terminal
LLC,
Revenue,
2020
A,
Refunding,
5%,
12/01/35
...
400,000
466,892
JFK
International
Air
Terminal
LLC,
Revenue,
2020
A,
Refunding,
5%,
12/01/36
...
200,000
233,016
JFK
International
Air
Terminal
LLC,
Revenue,
2020
C,
Refunding,
5%,
12/01/33
...
1,200,000
1,416,827
Port
Authority
of
New
York
&
New
Jersey
,
Revenue,
2014,
5%,
9/01/34
.........................................
2,500,000
2,988,871
Revenue,
2014,
5%,
9/01/35
.........................................
20,000
23,859
Revenue,
2018,
5%,
11/01/39
........................................
3,000,000
3,566,275
Revenue,
221,
4%,
7/15/36
..........................................
2,180,000
2,412,097
Triborough
Bridge
&
Tunnel
Authority
,
Revenue
,
B
,
Refunding
,
5
%
,
11/15/30
.......
8,960,000
10,458,567
Troy
Capital
Resource
Corp.
,
Rensselaer
Polytechnic
Institute,
Revenue,
2020
A,
Refunding,
5%,
9/01/28
......
1,300,000
1,540,561
Rensselaer
Polytechnic
Institute,
Revenue,
2020
A,
Refunding,
5%,
9/01/30
......
2,900,000
3,554,583
Rensselaer
Polytechnic
Institute,
Revenue,
2020
A,
Refunding,
5%,
9/01/34
......
4,175,000
5,090,702
363,863,310
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
57
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
North
Carolina
0.6%
City
of
Charlotte
,
Water
&
Sewer
System
,
Revenue
,
2015
,
Refunding
,
5
%
,
7/01/27
..
$
10,000,000
$
11,207,748
County
of
Buncombe
,
Revenue
,
A
,
5
%
,
6/01/28
.............................
5,000,000
5,402,869
North
Carolina
State
Education
Assistance
Authority
,
Revenue,
Senior
Lien,
2020
A,
5%,
6/01/25
..............................
125,000
136,570
Revenue,
Senior
Lien,
2020
A,
5%,
6/01/26
..............................
300,000
334,470
Revenue,
Senior
Lien,
2020
A,
5%,
6/01/27
..............................
450,000
510,510
Revenue,
Senior
Lien,
2020
A,
5%,
6/01/28
..............................
500,000
575,125
Revenue,
Senior
Lien,
2020
A,
5%,
6/01/29
..............................
350,000
407,291
Revenue,
Senior
Lien,
2020
A,
3.125%,
6/01/39
...........................
725,000
704,144
19,278,727
North
Dakota
0.2%
City
of
Grand
Forks
,
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
12/01/29
..
1,600,000
1,918,074
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
12/01/30
..
1,600,000
1,943,190
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
12/01/31
..
1,300,000
1,598,795
5,460,059
Ohio
3.4%
Buckeye
Tobacco
Settlement
Financing
Authority
,
Revenue,
Senior
Lien,
2020
A-1,
1,
Refunding,
2%,
6/01/27
..................
1,475,000
1,439,922
Revenue,
Senior
Lien,
2020
A-2,
1,
Refunding,
4%,
6/01/48
..................
7,000,000
7,356,154
City
of
Akron
,
Community
Learning
Center,
Revenue,
2012
A,
Refunding,
5%,
12/01/24
........
5,265,000
5,322,377
Community
Learning
Center,
Revenue,
2012
A,
Refunding,
5%,
12/01/25
........
6,645,000
6,717,415
Community
Learning
Center,
Revenue,
2012
A,
Refunding,
5%,
12/01/26
........
8,240,000
8,329,797
City
of
Cincinnati
,
GO,
2014
A,
Pre-Refunded,
5%,
12/01/25
...............................
2,000,000
2,022,048
GO,
2014
A,
Pre-Refunded,
5%,
12/01/27
...............................
2,000,000
2,022,048
GO,
2014
A,
Pre-Refunded,
5%,
12/01/28
...............................
2,350,000
2,375,906
City
of
Toledo
,
Water
System,
Revenue,
2013,
Refunding,
5%,
11/15/25
....................
4,000,000
4,186,579
Water
System,
Revenue,
2013,
Refunding,
5%,
11/15/26
....................
6,140,000
6,423,372
Water
System,
Revenue,
2013,
Refunding,
5%,
11/15/27
....................
6,450,000
6,744,502
Water
System,
Revenue,
2013,
Refunding,
5%,
11/15/28
....................
6,570,000
6,869,981
County
of
Hamilton
,
Sewer
System,
Revenue,
2013
A,
Refunding,
5%,
12/01/24
..................
2,500,000
2,667,262
Sewer
System,
Revenue,
2013
A,
Refunding,
5%,
12/01/25
..................
2,400,000
2,559,707
Sewer
System,
Revenue,
2013
A,
Refunding,
5%,
12/01/26
..................
4,000,000
4,261,140
Sewer
System,
Revenue,
2013
A,
Refunding,
5%,
12/01/27
..................
5,000,000
5,323,730
Sewer
System,
Revenue,
2013
A,
Refunding,
5%,
12/01/28
..................
3,000,000
3,193,160
Kent
State
University
,
Revenue,
2012
A,
Pre-Refunded,
5%,
5/01/23
............................
1,200,000
1,208,844
Revenue,
2012
A,
Pre-Refunded,
5%,
5/01/24
............................
1,500,000
1,511,055
Revenue,
2012
A,
Pre-Refunded,
5%,
5/01/25
............................
1,500,000
1,511,054
Revenue,
2012
A,
Pre-Refunded,
5%,
5/01/26
............................
1,600,000
1,611,791
Ohio
Turnpike
&
Infrastructure
Commission
,
Revenue
,
1998
A
,
Refunding
,
NATL
Insured
,
5.5
%
,
2/15/24
..............................................
6,845,000
7,270,460
Ohio
Water
Development
Authority
,
Revenue,
2019,
5%,
12/01/36
........................................
5,650,000
6,963,993
Water
Pollution
Control
Loan
Fund,
Revenue,
2017
A,
5%,
12/01/31
............
10,000,000
11,689,758
State
of
Ohio
,
GO,
R,
Pre-Refunded,
5%,
5/01/27
....................................
5,000,000
5,408,078
Premier
Health
Partners
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
11/15/35
1,000,000
1,192,897
Premier
Health
Partners
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/15/36
905,000
996,946
117,179,976
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
58
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Oregon
3.3%
City
of
Portland
,
Water
System
,
Revenue,
Second
Lien
,
2013
A
,
Refunding
,
5
%
,
10/01/25
........................................................
$
5,000,000
$
5,207,243
Clackamas
County
School
District
No.
12
North
Clackamas
,
GO
,
B
,
5
%
,
6/15/32
....
3,725,000
4,356,150
County
of
Yamhill
,
Linfield
University
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
10/01/35
...
5,240,000
6,229,932
Hillsboro
School
District
No.
1J
,
GO,
2020,
4%,
6/15/35
.............................................
1,250,000
1,451,150
GO,
2020,
4%,
6/15/36
.............................................
2,605,000
3,021,231
GO,
2020,
4%,
6/15/37
.............................................
4,370,000
5,064,074
GO,
2020,
4%,
6/15/38
.............................................
4,575,000
5,291,719
Medford
Hospital
Facilities
Authority
,
Asante
Health
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
8/15/34
1,100,000
1,343,968
Asante
Health
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
8/15/35
800,000
974,368
Asante
Health
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
8/15/36
1,300,000
1,579,504
Oregon
State
Facilities
Authority
,
Samaritan
Health
Services,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
10/01/25
.......................................................
425,000
475,379
Samaritan
Health
Services,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
10/01/26
.......................................................
150,000
172,132
Samaritan
Health
Services,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
10/01/28
.......................................................
325,000
388,162
Samaritan
Health
Services,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
10/01/29
.......................................................
600,000
728,608
Samaritan
Health
Services,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
10/01/35
.......................................................
275,000
331,422
Willamette
University,
Revenue,
2021
A,
Refunding,
4%,
10/01/51
.............
2,000,000
2,146,121
Port
of
Portland
,
Airport
,
Revenue
,
Twenty-Seven
A
,
5
%
,
7/01/34
................
9,110,000
10,958,592
Salem
Hospital
Facility
Authority
,
Salem
Health
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
5/15/33
.......
9,440,000
11,392,146
Salem
Health
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
5/15/34
.......
3,780,000
4,557,868
Salem
Health
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
5/15/35
.......
9,010,000
10,853,947
State
of
Oregon
,
Department
of
Transportation,
Revenue,
Senior
Lien,
2014
A,
Pre-Refunded,
5%,
11/15/27
.......................................................
3,000,000
3,300,660
Department
of
Transportation,
Revenue,
Senior
Lien,
2014
A,
Pre-Refunded,
5%,
11/15/28
.......................................................
3,500,000
3,850,770
Department
of
Transportation,
Revenue,
Sub.
Lien,
2019
A,
Refunding,
4%,
11/15/42
16,000,000
18,163,770
Washington
&
Multnomah
Counties
School
District
No.
48J
Beaverton
,
GO,
B,
Pre-Refunded,
5%,
6/15/28
.....................................
5,000,000
5,429,830
GO,
B,
Pre-Refunded,
5%,
6/15/29
.....................................
7,500,000
8,144,746
115,413,492
Pennsylvania
3.5%
Allegheny
County
Hospital
Development
Authority
,
UPMC
Obligated
Group
,
Revenue
,
2019
A
,
Refunding
,
5
%
,
7/15/34
.......................................
5,000,000
6,042,481
Allentown
Neighborhood
Improvement
Zone
Development
Authority
,
Revenue,
2022,
Refunding,
5%,
5/01/28
.................................
600,000
692,231
Revenue,
2022,
Refunding,
5%,
5/01/29
.................................
600,000
702,981
Revenue,
2022,
Refunding,
5%,
5/01/30
.................................
700,000
831,938
Revenue,
2022,
Refunding,
5%,
5/01/31
.................................
675,000
812,461
City
of
Philadelphia
,
Water
&
Wastewater,
Revenue,
2017
B,
Refunding,
5%,
11/01/31
..............
5,750,000
6,776,958
Water
&
Wastewater,
Revenue,
2020
A,
Refunding,
5%,
11/01/36
..............
1,000,000
1,236,444
Water
&
Wastewater,
Revenue,
2020
A,
Refunding,
5%,
11/01/37
..............
1,500,000
1,848,586
Water
&
Wastewater,
Revenue,
2020
A,
Refunding,
5%,
11/01/38
..............
2,000,000
2,456,564
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
59
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Pennsylvania
(continued)
Commonwealth
of
Pennsylvania
,
GO,
Second
Series
,
2013
,
5
%
,
10/15/26
.........
$
13,375,000
$
14,224,342
Delaware
Valley
Regional
Finance
Authority
,
Revenue
,
1998
A
,
AMBAC
Insured
,
5.5
%
,
8/01/28
.........................................................
7,000,000
8,534,903
Lancaster
County
Solid
Waste
Management
Authority
,
Revenue,
2013
A,
5.25%,
12/15/25
....................................
5,345,000
5,749,717
Revenue,
2013
A,
5.25%,
12/15/26
....................................
5,835,000
6,276,820
Pennsylvania
Economic
Development
Financing
Authority
,
UPMC
Obligated
Group,
Revenue,
2020
A,
5%,
4/15/33
.....................
2,100,000
2,548,636
UPMC
Obligated
Group,
Revenue,
2020
A,
5%,
4/15/34
.....................
1,750,000
2,119,031
UPMC
Obligated
Group,
Revenue,
2020
A,
5%,
4/15/35
.....................
1,450,000
1,753,917
UPMC
Obligated
Group,
Revenue,
2020
A,
4%,
4/15/38
.....................
3,245,000
3,640,250
UPMC
Obligated
Group,
Revenue,
2020
A,
4%,
4/15/39
.....................
3,685,000
4,126,449
b
Waste
Management
Obligated
Group,
Revenue,
2009,
Mandatory
Put,
0.95%,
12/01/26
.......................................................
3,000,000
2,837,032
b
Waste
Management,
Inc.,
Revenue,
2017
A,
Mandatory
Put,
0.58%,
8/01/24
.....
5,500,000
5,307,998
b
Waste
Management,
Inc.,
Revenue,
2021
B,
Refunding,
Mandatory
Put,
1.1%,
11/02/26
.......................................................
6,750,000
6,433,951
Pennsylvania
Higher
Educational
Facilities
Authority
,
Drexel
University,
Revenue,
2020
A,
Refunding,
AGMC
Insured,
5%,
5/01/38
.....
6,950,000
8,429,370
University
of
Pennsylvania
Health
System
Obligated
Group
(The),
Revenue,
2017
A,
4%,
8/15/34
....................................................
5,895,000
6,503,226
Pennsylvania
State
University
(The)
,
Revenue
,
A
,
5
%
,
9/01/30
.................
4,000,000
4,699,771
Philadelphia
Authority
for
Industrial
Development
,
City
of
Philadelphia,
Revenue,
1999
B,
AMBAC
Insured,
Zero
Cpn.,
4/15/24
......
5,500,000
5,259,934
MaST
Community
Charter
School
II,
Revenue,
2020
A,
5%,
8/01/30
............
200,000
226,154
MaST
Community
Charter
School
II,
Revenue,
2020
A,
5%,
8/01/40
............
300,000
346,683
Philadelphia
Gas
Works
Co.
,
Revenue,
15th,
Refunding,
5%,
8/01/30
.................................
2,000,000
2,332,043
Revenue,
15th,
Refunding,
5%,
8/01/31
.................................
4,030,000
4,692,277
Redevelopment
Authority
of
the
City
of
Philadelphia
,
Revenue
,
2021
A
,
BAM
Insured
,
2.799
%
,
9/01/33
...................................................
2,425,000
2,401,774
119,844,922
Rhode
Island
0.2%
State
of
Rhode
Island
,
GO,
2019
C,
5%,
1/15/32
............................................
4,500,000
5,468,109
GO,
2019
C,
4%,
1/15/34
............................................
1,520,000
1,738,195
GO,
2019
C,
4%,
1/15/35
............................................
600,000
685,482
7,891,786
South
Carolina
2.4%
City
of
Anderson
,
Water
&
Sewer,
Revenue,
2012,
Refunding,
AGMC
Insured,
5%,
7/01/22
........
2,555,000
2,591,684
Water
&
Sewer,
Revenue,
2012,
Refunding,
AGMC
Insured,
5%,
7/01/23
........
2,695,000
2,733,876
Water
&
Sewer,
Revenue,
2012,
Refunding,
AGMC
Insured,
5%,
7/01/24
........
2,825,000
2,865,751
Water
&
Sewer,
Revenue,
2012,
Refunding,
AGMC
Insured,
5%,
7/01/25
........
2,965,000
3,007,771
County
of
Berkeley
,
Combined
Utility
System,
Revenue,
2013,
Pre-Refunded,
5%,
6/01/25
..........
3,665,000
3,846,806
Combined
Utility
System,
Revenue,
2013,
Pre-Refunded,
5%,
6/01/26
..........
1,700,000
1,784,330
County
of
Richland
,
International
Paper
Co.,
Revenue,
2014
A,
Refunding,
3.875%,
4/01/23
.........
10,000,000
10,286,361
d
Village
at
Sandhill
Improvement
District,
Special
Assessment,
144A,
2021,
Refunding,
3.625%,
11/01/31
.......................................
1,000,000
953,138
South
Carolina
Jobs-Economic
Development
Authority
,
d
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
6,600,000
6,175,954
d
Revenue,
144A,
2021
A-2,
5.3%,
12/01/29
...............................
1,805,000
1,761,776
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
7,400,000
6,916,826
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
60
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
South
Carolina
(continued)
South
Carolina
Jobs-Economic
Development
Authority,
(continued)
Prisma
Health
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
5/01/33
......
$
6,000,000
$
7,000,150
South
Carolina
Public
Service
Authority
,
Revenue,
2020
A,
Refunding,
5%,
12/01/31
..............................
2,355,000
2,900,664
Revenue,
2020
A,
Refunding,
5%,
12/01/43
..............................
20,280,000
24,202,560
Revenue,
2021
A,
Refunding,
5%,
12/01/25
..............................
1,000,000
1,125,387
Revenue,
2021
A,
Refunding,
5%,
12/01/26
..............................
750,000
865,286
d
South
Carolina
State
Housing
Finance
&
Development
Authority
,
Garden
Oaks
LP
,
Revenue
,
144A,
2021
B
,
4
%
,
12/01/24
..................................
3,300,000
3,246,753
82,265,073
South
Dakota
0.1%
County
of
Lincoln
,
Augustana
College
Association
(The)
,
Revenue
,
2021
A
,
Refunding
,
4
%
,
8/01/51
......................................................
1,500,000
1,582,894
South
Dakota
Health
&
Educational
Facilities
Authority
,
Presbyterian
Retirement
Village
of
Rapid
City,
Inc.
,
Revenue
,
2021
,
Refunding
,
3
%
,
9/01/41
..................
1,150,000
1,090,789
2,673,683
Tennessee
0.7%
Chattanooga
Health
Educational
&
Housing
Facility
Board
,
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-1,
Refunding,
5%,
8/01/31
1,500,000
1,781,642
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-1,
Refunding,
5%,
8/01/34
1,000,000
1,180,858
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-1,
Refunding,
5%,
8/01/35
1,250,000
1,474,727
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-1,
Refunding,
4%,
8/01/36
1,000,000
1,101,061
Metropolitan
Government
of
Nashville
&
Davidson
County
,
Water
&
Sewer,
Revenue,
2013,
Pre-Refunded,
5%,
7/01/26
.................
1,675,000
1,764,204
Water
&
Sewer,
Revenue,
2013,
Pre-Refunded,
5%,
7/01/27
.................
1,800,000
1,895,862
b
Tennessee
Energy
Acquisition
Corp.
,
Revenue
,
2021
A
,
Mandatory
Put
,
5
%
,
11/01/31
4,000,000
4,814,953
Tennessee
State
School
Bond
Authority
,
Revenue
,
2015
B
,
5
%
,
11/01/28
.........
8,180,000
9,210,202
23,223,509
Texas
8.6%
Abilene
Convention
Center
Hotel
Development
Corp.
,
City
of
Abilene
Abilene
Convention
Center
,
Revenue,
First
Lien
,
2021
A
,
2.5
%
,
10/01/31
..............
1,075,000
1,060,305
Central
Texas
Regional
Mobility
Authority
,
Revenue,
Senior
Lien
,
2021
B
,
5
%
,
1/01/46
3,500,000
4,198,241
City
of
Austin
,
Water
&
Wastewater
System,
Revenue,
2012,
Refunding,
5%,
11/15/26
.........
4,835,000
4,979,514
Water
&
Wastewater
System,
Revenue,
2012,
Refunding,
5%,
11/15/27
.........
4,000,000
4,118,407
Water
&
Wastewater
System,
Revenue,
2013
A,
Refunding,
5%,
11/15/28
.......
5,000,000
5,236,924
City
of
Dallas
,
Waterworks
&
Sewer
System,
Revenue,
2017,
Refunding,
5%,
10/01/30
........
1,500,000
1,775,281
Waterworks
&
Sewer
System,
Revenue,
2017,
Refunding,
5%,
10/01/31
........
2,500,000
2,954,400
Waterworks
&
Sewer
System,
Revenue,
2017,
Refunding,
5%,
10/01/32
........
1,000,000
1,180,003
City
of
El
Paso
,
GO,
2020
A,
Refunding,
4%,
8/15/35
...................................
1,000,000
1,141,972
GO,
2020
A,
Refunding,
4%,
8/15/36
...................................
1,000,000
1,140,905
City
of
Fort
Worth
,
GO,
2012,
Refunding,
5%,
3/01/25
.....................................
6,000,000
6,021,841
GO,
2012,
Refunding,
5%,
3/01/26
.....................................
6,790,000
6,814,492
City
of
Houston
,
Combined
Utility
System,
Revenue,
First
Lien,
2014
C,
Refunding,
5%,
5/15/24
...
5,000,000
5,412,572
Combined
Utility
System,
Revenue,
First
Lien,
2017
B,
Refunding,
5%,
11/15/34
..
3,250,000
3,843,293
Combined
Utility
System,
Revenue,
First
Lien,
2017
B,
Refunding,
5%,
11/15/35
..
4,500,000
5,316,105
City
of
San
Antonio
,
Electric
&
Gas
Systems,
Revenue,
2015,
Refunding,
5%,
2/01/27
..............
10,415,000
11,806,517
Electric
&
Gas
Systems,
Revenue,
Junior
Lien,
2019,
Refunding,
5%,
2/01/35
....
4,400,000
5,427,829
Electric
&
Gas
Systems,
Revenue,
Junior
Lien,
2021
A,
Refunding,
5%,
2/01/46
...
7,500,000
9,136,276
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
61
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Texas
(continued)
Conroe
Local
Government
Corp.
,
Conroe
Convention
Center
Hotel,
Revenue,
First
Lien,
2021
A,
2.5%,
10/01/31
....
$
500,000
$
472,005
Conroe
Convention
Center
Hotel,
Revenue,
Third
Lien,
2021
C,
5%,
10/01/30
....
100,000
122,469
Conroe
Convention
Center
Hotel,
Revenue,
Third
Lien,
2021
C,
5%,
10/01/31
....
60,000
74,309
County
of
Williamson
,
GO
,
2012
,
Refunding
,
5
%
,
2/15/23
.....................
6,235,000
6,255,991
Dallas
Fort
Worth
International
Airport
,
Revenue,
2013
D,
Refunding,
5.25%,
11/01/27
............................
5,000,000
5,321,614
Revenue,
2013
D,
Refunding,
5.25%,
11/01/28
............................
2,100,000
2,233,283
Ector
County
Hospital
District
,
GO,
2020,
Refunding,
5%,
9/15/29
.....................................
800,000
918,682
GO,
2020,
Refunding,
5%,
9/15/30
.....................................
745,000
865,016
GO,
2020,
Refunding,
5%,
9/15/31
.....................................
450,000
521,695
GO,
2020,
Refunding,
5%,
9/15/32
.....................................
600,000
695,488
GO,
2020,
Refunding,
5%,
9/15/33
.....................................
650,000
752,189
GO,
2020,
Refunding,
4%,
9/15/34
.....................................
650,000
694,512
GO,
2020,
Refunding,
4%,
9/15/35
.....................................
700,000
747,175
El
Paso
Independent
School
District
,
GO,
2015,
Pre-Refunded,
PSF
Guaranty,
5%,
8/15/27
......................
5,460,000
5,953,920
GO,
2015,
Pre-Refunded,
PSF
Guaranty,
5%,
8/15/28
......................
2,500,000
2,726,154
Harris
County
Toll
Road
Authority
(The)
,
Revenue,
Senior
Lien,
2018
A,
Refunding,
5%,
8/15/32
.....................
2,500,000
2,983,597
Revenue,
Senior
Lien,
2018
A,
Refunding,
5%,
8/15/33
.....................
2,500,000
2,984,582
Kaufman
County
Fresh
Water
Supply
District
No.
1-D
,
GO,
2021,
2%,
9/01/28
.............................................
155,000
144,132
GO,
2021,
2%,
9/01/29
.............................................
155,000
142,230
d
Lakeside
Place
PFC
,
Torrey
Chase
Apartments
LP
,
Revenue
,
144A,
2021
,
3.48
%
,
12/15/39
........................................................
3,975,000
3,668,929
Lower
Colorado
River
Authority
,
LCRA
Transmission
Services
Corp.,
Revenue,
2021,
Refunding,
5%,
5/15/27
.....
2,000,000
2,323,657
LCRA
Transmission
Services
Corp.,
Revenue,
2021,
Refunding,
5%,
5/15/28
.....
2,200,000
2,609,612
LCRA
Transmission
Services
Corp.,
Revenue,
2021,
Refunding,
5%,
5/15/29
.....
2,000,000
2,418,170
Metropolitan
Transit
Authority
of
Harris
County
,
Sales
&
Use
Tax,
Revenue,
2014,
Pre-Refunded,
5%,
11/01/26
...............
2,000,000
2,197,605
Sales
&
Use
Tax,
Revenue,
2014,
Pre-Refunded,
5%,
11/01/27
...............
2,000,000
2,197,605
Sales
&
Use
Tax,
Revenue,
2014,
Pre-Refunded,
5%,
11/01/28
...............
2,000,000
2,197,605
North
Texas
Tollway
Authority
,
North
Texas
Tollway
System
,
Revenue,
First
Tier
,
A
,
Refunding
,
4
%
,
1/01/33
.............................................
5,000,000
5,468,592
Northwest
Independent
School
District
,
GO,
2015
A,
Pre-Refunded,
PSF
Guaranty,
5%,
2/15/28
.....................
4,815,000
5,334,507
GO,
2015
A,
Pre-Refunded,
PSF
Guaranty,
5%,
2/15/29
.....................
7,015,000
7,771,872
d
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
A-1
,
4.5
%
,
12/01/37
...........
12,000,000
12,039,887
Permanent
University
Fund
,
University
of
Texas
System
,
Revenue
,
2014
B
,
Refunding
,
5
%
,
7/01/27
......................................................
10,000,000
10,854,848
San
Angelo
Independent
School
District
,
GO
,
A
,
Pre-Refunded
,
PSF
Guaranty
,
5
%
,
2/15/28
.........................................................
5,220,000
5,603,840
San
Antonio
Education
Facilities
Corp.
,
University
of
the
Incarnate
Word,
Revenue,
2021
A,
Refunding,
4%,
4/01/37
......
635,000
689,479
University
of
the
Incarnate
Word,
Revenue,
2021
A,
Refunding,
4%,
4/01/39
......
2,435,000
2,631,449
University
of
the
Incarnate
Word,
Revenue,
2021
A,
Refunding,
4%,
4/01/40
......
2,000,000
2,157,590
San
Antonio
Water
System
,
Revenue,
Junior
Lien,
2014
A,
Refunding,
5%,
5/15/24
......................
1,500,000
1,599,463
Revenue,
Junior
Lien,
2014
A,
Refunding,
5%,
5/15/26
......................
2,200,000
2,342,403
Revenue,
Junior
Lien,
2014
A,
Refunding,
5%,
5/15/28
......................
2,000,000
2,127,354
Revenue,
Junior
Lien,
2014
A,
Refunding,
5%,
5/15/29
......................
1,000,000
1,063,502
Texas
Municipal
Gas
Acquisition
&
Supply
Corp.
III
,
Revenue,
2021,
Refunding,
5%,
12/15/27
................................
1,000,000
1,151,276
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
62
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Texas
(continued)
Texas
Municipal
Gas
Acquisition
&
Supply
Corp.
III,
(continued)
Revenue,
2021,
Refunding,
5%,
12/15/29
................................
$
9,750,000
$
11,580,160
Revenue,
2021,
Refunding,
5%,
12/15/31
................................
7,250,000
8,843,401
Revenue,
2021,
Refunding,
5%,
12/15/32
................................
2,250,000
2,781,991
Texas
Transportation
Commission
,
State
Highway
Fund,
Revenue,
First
Tier,
2014
A,
Refunding,
5%,
4/01/23
.......
20,000,000
20,895,388
State
Highway
Fund,
Revenue,
First
Tier,
2014
A,
Refunding,
5%,
4/01/24
.......
20,000,000
21,560,998
State
Highway
Fund,
Revenue,
First
Tier,
2014
A,
Refunding,
5%,
4/01/25
.......
20,000,000
21,586,814
Texas
Water
Development
Board
,
State
Water
Implementation
Revenue
Fund
for
Texas
,
Revenue
,
2017
A
,
5
%
,
10/15/31
.................................
12,585,000
14,862,935
d
Town
of
Little
Elm
,
Valencia
Public
Improvement
District
,
Special
Assessment
,
144A,
2021
,
2.875
%
,
9/01/31
..............................................
281,000
262,894
Westside
211
Special
Improvement
District
,
GO,
Sub.
Lien,
2021,
2%,
8/15/29
.....................................
290,000
278,523
GO,
Sub.
Lien,
2021,
2.25%,
8/15/31
...................................
300,000
288,352
GO,
Sub.
Lien,
2021,
3%,
8/15/33
.....................................
315,000
317,276
GO,
Sub.
Lien,
2021,
3%,
8/15/35
.....................................
335,000
335,762
GO,
Sub.
Lien,
2021,
3%,
8/15/37
.....................................
355,000
353,801
298,571,460
Utah
0.1%
City
of
Lehi
,
Sales
Tax
,
Revenue
,
2021
,
AGMC
Insured
,
4
%
,
2/01/48
.............
3,000,000
3,421,361
Utah
Infrastructure
Agency
,
Revenue
,
2021
,
4
%
,
10/15/35
.....................
400,000
442,921
3,864,282
Virginia
3.2%
City
of
Norfolk
,
Water,
Revenue,
2012,
5%,
11/01/24
...................................
95,000
95,686
Water,
Revenue,
2012,
5%,
11/01/25
...................................
90,000
90,648
City
of
Richmond
,
Public
Utility
,
Revenue
,
2016
A
,
Refunding
,
5
%
,
1/15/32
........
10,000,000
11,338,607
Virginia
College
Building
Authority
,
Revenue
,
2015
D
,
5
%
,
2/01/25
...............
7,405,000
8,187,301
Virginia
Commonwealth
Transportation
Board
,
Revenue
,
2019
,
3
%
,
5/15/36
.......
9,460,000
10,016,716
Virginia
Public
Building
Authority
,
Revenue,
B,
Pre-Refunded,
4%,
8/01/29
................................
1,075,000
1,191,629
Revenue,
B,
4%,
8/01/29
............................................
12,060,000
13,352,064
Virginia
Public
School
Authority
,
Revenue
,
2014
C
,
5
%
,
8/01/27
.................
4,460,000
4,857,136
Virginia
Resources
Authority
,
Clean
Water
Revolving
Fund,
Revenue,
2014
B,
Refunding,
5%,
10/01/26
.......
26,155,000
28,658,583
Clean
Water
Revolving
Fund,
Revenue,
2015,
Refunding,
5%,
10/01/28
.........
11,950,000
13,509,176
Virginia
Small
Business
Financing
Authority
,
e
Capital
Beltway
Express
LLC,
Revenue,
Sub.
Lien,
FRN,
2022,
Refunding,
2%,
12/31/23
.......................................................
7,700,000
7,702,403
c
Elizabeth
River
Crossings
OpCo
LLC,
Revenue,
Senior
Lien,
2022,
Refunding,
4%,
1/01/32
........................................................
2,500,000
2,742,092
c
Elizabeth
River
Crossings
OpCo
LLC,
Revenue,
Senior
Lien,
2022,
Refunding,
4%,
7/01/32
........................................................
2,000,000
2,193,686
National
Senior
Communities,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
1/01/35
....................................................
3,000,000
3,516,006
National
Senior
Communities,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
1/01/36
....................................................
3,000,000
3,335,840
110,787,573
Washington
4.9%
City
of
Seattle
,
Drainage
&
Wastewater,
Revenue,
2014,
Refunding,
5%,
5/01/24
..............
5,230,000
5,650,996
Drainage
&
Wastewater,
Revenue,
2014,
Refunding,
5%,
5/01/25
..............
5,500,000
5,943,961
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
63
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Washington
(continued)
City
of
Seattle,
(continued)
Drainage
&
Wastewater,
Revenue,
2014,
Refunding,
5%,
5/01/26
..............
$
2,995,000
$
3,232,739
Drainage
&
Wastewater,
Revenue,
2014,
Refunding,
5%,
5/01/27
..............
3,150,000
3,395,824
Municipal
Light
&
Power,
Revenue,
2017
C,
Refunding,
4%,
9/01/34
............
5,300,000
5,885,086
County
of
King
,
GO,
2021
C,
0.61%,
12/01/23
........................................
7,130,000
7,027,419
GO,
2021
C,
1.01%,
12/01/24
........................................
9,405,000
9,230,007
Sewer,
Revenue,
2014
B,
Refunding,
5%,
7/01/25
.........................
1,200,000
1,303,160
Sewer,
Revenue,
2014
B,
Refunding,
5%,
7/01/26
.........................
1,200,000
1,302,003
Sewer,
Revenue,
2014
B,
Refunding,
5%,
7/01/27
.........................
1,900,000
2,058,304
Sewer,
Revenue,
2014
B,
Refunding,
5%,
7/01/28
.........................
3,050,000
3,299,723
Sewer,
Revenue,
2014
B,
Pre-Refunded,
5%,
7/01/29
......................
2,600,000
2,824,142
Energy
Northwest
,
Bonneville
Power
Administration,
Revenue,
2014
A,
Refunding,
5%,
7/01/22
......
3,250,000
3,297,869
Bonneville
Power
Administration,
Revenue,
2019
A,
Refunding,
5%,
7/01/36
......
7,000,000
8,528,139
Bonneville
Power
Administration,
Revenue,
A,
Refunding,
5%,
7/01/23
..........
3,500,000
3,688,315
Bonneville
Power
Administration,
Revenue,
A,
Refunding,
5%,
7/01/24
..........
1,250,000
1,359,571
Seattle
Housing
Authority
,
Yesler
Block
7.3
LLLP
,
Revenue
,
2021
,
1
%
,
6/01/25
.....
7,225,000
7,066,147
State
of
Washington
,
GO,
2017
D,
5%,
2/01/31
............................................
5,480,000
6,353,804
GO,
2017
D,
5%,
2/01/32
............................................
10,000,000
11,553,576
GO,
R-2015B,
Refunding,
5%,
7/01/25
..................................
29,370,000
31,923,204
Washington
Health
Care
Facilities
Authority
,
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-1,
Refunding,
5%,
8/01/35
2,620,000
3,091,027
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/30
2,800,000
3,335,092
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/31
3,700,000
4,394,717
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/32
1,500,000
1,776,662
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/33
1,395,000
1,650,856
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/34
1,225,000
1,446,551
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/36
5,125,000
6,037,150
Overlake
Hospital
Medical
Center
Obligated
Group,
Revenue,
B,
Refunding,
5%,
7/01/30
........................................................
1,000,000
1,181,306
Overlake
Hospital
Medical
Center
Obligated
Group,
Revenue,
B,
Refunding,
5%,
7/01/31
........................................................
1,925,000
2,268,597
Seattle
Cancer
Care
Alliance
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
9/01/38
........................................................
1,000,000
1,213,892
Seattle
Cancer
Care
Alliance
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
9/01/39
........................................................
1,000,000
1,211,689
Seattle
Cancer
Care
Alliance
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
9/01/40
........................................................
1,000,000
1,209,730
d
Seattle
Cancer
Care
Alliance
Obligated
Group,
Revenue,
144A,
2021,
3%,
12/01/35
440,000
459,010
Virginia
Mason
Medical
Center
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
8/15/31
........................................................
2,250,000
2,568,492
Virginia
Mason
Medical
Center
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
8/15/32
........................................................
1,605,000
1,830,104
Virginia
Mason
Medical
Center
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
8/15/35
........................................................
2,400,000
2,731,019
Washington
State
Housing
Finance
Commission
,
Revenue,
2021-1,
A,
3.5%,
12/20/35
...................................
6,925,852
7,223,407
d
Madison
at
Rivers
Edge
Apartments
LLC,
Revenue,
144A,
2021
B,
5.3%,
1/01/30
.
1,300,000
1,266,880
169,820,170
West
Virginia
0.3%
State
of
West
Virginia
,
GO
,
2019
A
,
5
%
,
12/01/36
...........................
9,700,000
11,841,533
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
64
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Wisconsin
1.7%
City
of
Milwaukee
,
Sewerage
System
,
Revenue
,
2021
S-2
,
Refunding
,
3
%
,
6/01/46
..
$
4,600,000
$
4,730,752
Public
Finance
Authority
,
2017
IAVF
Rubix
LLC,
Revenue,
2020
A,
3.5%,
12/01/32
....................
1,405,000
1,377,652
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020
A,
4%,
11/15/37
.......................................................
600,000
670,006
d
Affordable
Housing
Preservation
Corp.
(The),
Revenue,
144A,
2021,
5.25%,
12/01/22
.......................................................
18,100,000
18,016,727
Appalachian
Regional
Healthcare
System
Obligated
Group,
Revenue,
2021
A,
4%,
7/01/46
........................................................
1,100,000
1,219,765
Coral
Academy
of
Science
Las
Vegas,
Revenue,
2021
A,
4%,
7/01/29
..........
285,000
306,933
Coral
Academy
of
Science
Las
Vegas,
Revenue,
2021
A,
4%,
7/01/30
..........
200,000
214,588
Coral
Academy
of
Science
Las
Vegas,
Revenue,
2021
A,
4%,
7/01/31
..........
200,000
213,956
d
Hope
Housing
Foundation
Obligated
Group,
Revenue,
144A,
2022
A,
3.8%,
12/01/37
5,600,000
5,374,779
d
Hope
Housing
Foundation
Obligated
Group,
Revenue,
144A,
2022
B,
5.75%,
12/01/27
.......................................................
2,065,000
2,054,416
Renown
Regional
Medical
Center,
Revenue,
2020
A,
Refunding,
4%,
6/01/35
.....
2,100,000
2,369,808
United
Methodist
Retirement
Homes,
Inc.
Obligated
Group
(The),
Revenue,
2021
A,
Refunding,
4%,
10/01/27
...........................................
195,000
215,603
United
Methodist
Retirement
Homes,
Inc.
Obligated
Group
(The),
Revenue,
2021
A,
Refunding,
4%,
10/01/28
...........................................
250,000
277,749
United
Methodist
Retirement
Homes,
Inc.
Obligated
Group
(The),
Revenue,
2021
A,
Refunding,
4%,
10/01/29
...........................................
320,000
356,227
United
Methodist
Retirement
Homes,
Inc.
Obligated
Group
(The),
Revenue,
2021
A,
Refunding,
4%,
10/01/30
...........................................
265,000
296,592
b,d
WV
2020
Holdings
LLC
Obligated
Group,
Revenue,
144A,
2020
A-1,
Mandatory
Put,
3.5%,
12/01/35
..................................................
9,700,000
9,267,560
Wisconsin
Department
of
Transportation
,
Revenue
,
2017-2
,
Refunding
,
5
%
,
7/01/31
.
5,000,000
5,869,812
Wisconsin
Health
&
Educational
Facilities
Authority
,
Marshfield
Clinic
Health
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
AGMC
Insured,
4%,
2/15/34
........................................
600,000
679,225
Marshfield
Clinic
Health
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
AGMC
Insured,
4%,
2/15/35
........................................
1,000,000
1,130,815
Marshfield
Clinic
Health
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
AGMC
Insured,
4%,
2/15/36
........................................
600,000
677,899
Marshfield
Clinic
Health
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
AGMC
Insured,
4%,
2/15/37
........................................
600,000
677,115
Oakwood
Lutheran
Senior
Ministries
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
1/01/28
....................................................
375,000
395,116
Oakwood
Lutheran
Senior
Ministries
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
1/01/29
....................................................
390,000
411,691
Oakwood
Lutheran
Senior
Ministries
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
1/01/30
....................................................
405,000
426,123
Oakwood
Lutheran
Senior
Ministries
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
1/01/37
....................................................
1,460,000
1,505,524
Wisconsin
Masonic
Home
Obligated
Group,
Revenue,
2021
A,
4%,
8/15/41
......
1,650,000
1,804,817
60,541,250
U.S.
Territories
0.6%
District
of
Columbia
0.5%
District
of
Columbia
,
Income
Tax
,
Revenue
,
2019
A
,
5
%
,
3/01/33
................
3,000,000
3,684,658
Washington
Metropolitan
Area
Transit
Authority
,
Revenue,
2017
B,
5%,
7/01/31
........................................
5,000,000
5,830,829
Revenue,
2017
B,
5%,
7/01/32
........................................
5,750,000
6,695,893
16,211,380
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
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65
s
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
U.S.
Territories
(continued)
Puerto
Rico
0.1%
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue
,
CC
,
Refunding
,
AGMC
Insured
,
5.5
%
,
7/01/29
..............................................
$
1,000,000
$
1,067,073
Puerto
Rico
Industrial
Tourist
Educational
Medical
&
Environmental
Control
Facilities
Financing
Authority
,
Hospital
Auxilio
Mutuo
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
7/01/27
..
450,000
518,331
Hospital
Auxilio
Mutuo
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
7/01/30
..
550,000
663,446
2,248,850
Total
U.S.
Territories
....................................................................
18,460,230
Total
Municipal
Bonds
(Cost
$3,303,363,948)
...................................
3,358,959,921
Total
Long
Term
Investments
(Cost
$3,371,992,260)
.............................
3,424,400,221
a
a
a
a
a
Short
Term
Investments
0.7%
Municipal
Bonds
0.7%
Arizona
0.0%
†
f
Arizona
Industrial
Development
Authority
,
Phoenix
Children's
Hospital
,
Revenue
,
2019
A
,
Refunding
,
LOC
JPMorgan
Chase
Bank
NA
,
Daily
VRDN
and
Put
,
0.06
%
,
2/01/48
400,000
400,000
California
0.5%
f
University
of
California
,
Revenue
,
2013
AL-1
,
Daily
VRDN
and
Put
,
0.03
%
,
5/15/48
..
17,400,000
17,400,000
New
York
0.1%
f
New
York
City
,
Water
&
Sewer
System
,
Revenue
,
2014
AA-4
,
SPA
State
Street
Bank
&
Trust
Co.
,
Daily
VRDN
and
Put
,
0.08
%
,
6/15/49
...........................
4,200,000
4,200,000
North
Carolina
0.1%
f
Charlotte-Mecklenburg
Hospital
Authority
(The)
,
Atrium
Health
Obligated
Group
,
Revenue
,
2007
C
,
Refunding
,
SPA
JPMorgan
Chase
Bank
NA
,
Daily
VRDN
and
Put
,
0.06
%
,
1/15/37
...................................................
1,700,000
1,700,000
Ohio
0.0%
†
f
County
of
Allen
,
Bon
Secours
Mercy
Health,
Inc.
,
Revenue
,
2010
C
,
LOC
Bank
of
Montreal
,
Daily
VRDN
and
Put
,
0.08
%
,
6/01/34
...........................
500,000
500,000
Total
Municipal
Bonds
(Cost
$24,200,000)
......................................
24,200,000
Total
Short
Term
Investments
(Cost
$24,200,000
)
................................
24,200,000
a
Total
Investments
(Cost
$3,396,192,260)
99.4%
..................................
$3,448,600,221
Other
Assets,
less
Liabilities
0.6%
.............................................
21,716,107
Net
Assets
100.0%
...........................................................
$3,470,316,328
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
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The
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integral
part
of
these
financial
statements.
66
See
Abbreviations
on
page
196
.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
b
The
maturity
date
shown
represents
the
mandatory
put
date.
c
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).
d
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
February
28,
2022,
the
aggregate
value
of
these
securities
was
$123,714,636,
representing
3.6%
of
net
assets.
e
Adjustable
rate
security
with
an
interest
rate
that
is
not
based
on
a
published
reference
index
and
spread.
The
rate
is
based
on
the
structure
of
the
agreement
and
current
market
conditions.
The
coupon
rate
shown
represents
the
rate
at
period
end.
f
Variable
rate
demand
notes
(VRDNs)
are
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.
Unless
otherwise
noted,
the
coupon
rate
is
determined
based
on
factors
including
supply
and
demand,
underlying
credit,
tax
treatment,
and
current
short
term
rates.
The
coupon
rate
shown
represents
the
rate
at
period
end.
Franklin
Tax-Free
Trust
Financial
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Federal
Limited-Term
Tax-Free
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Fund
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integral
part
of
these
financial
statements.
Annual
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67
a
Year
Ended
February
28,
Year
Ended
February
28,
2019
b
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
................................
$10.56
$10.59
$10.35
$10.27
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.07
0.11
0.15
0.07
Net
realized
and
unrealized
gains
(losses)
........................
(0.22)
(0.03)
0.25
0.08
Total
from
investment
operations
.................................
(0.15)
0.08
0.40
0.15
Less
distributions
from:
Net
investment
income
.......................................
(0.07)
(0.11)
(0.16)
(0.07)
Net
asset
value,
end
of
year
....................................
$10.34
$10.56
$10.59
$10.35
Total
return
e
................................................
(1.39)%
0.75%
3.88%
1.49%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
...................
0.80%
0.81%
0.81%
0.83%
Expenses
net
of
waiver
and
payments
by
affiliates
g
...................
0.65%
0.64%
0.64%
0.65%
Net
investment
income
........................................
0.70%
1.01%
1.42%
1.23%
Supplemental
data
Net
assets,
end
of
year
(000’s)
..................................
$345,670
$294,622
$158,939
$103,864
Portfolio
turnover
rate
.........................................
33.22%
19.85%
10.10%
64.94%
a
For
the
year
ended
February
29.
b
For
the
period
September
10,
2018
(effective
date)
to
February
28,
2019.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
(continued)
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The
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of
these
financial
statements.
68
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.57
$10.60
$10.36
$10.29
$10.37
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.09
0.12
0.16
0.14
0.09
Net
realized
and
unrealized
gains
(losses)
...........
(0.22)
(0.03)
0.25
0.08
(0.09)
Total
from
investment
operations
....................
(0.13)
0.09
0.41
0.22
—
Less
distributions
from:
Net
investment
income
..........................
(0.09)
(0.12)
(0.17)
(0.15)
(0.08)
Net
asset
value,
end
of
year
.......................
$10.35
$10.57
$10.60
$10.36
$10.29
Total
return
d
...................................
(1.29)%
0.85%
3.99%
2.11%
0.01%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.70%
0.71%
0.71%
0.73%
0.71%
Expenses
net
of
waiver
and
payments
by
affiliates
.......
0.55%
e
0.55%
e
0.54%
e
0.55%
e
0.63%
Net
investment
income
...........................
0.81%
1.14%
1.52%
1.33%
0.84%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$413,869
$468,057
$518,898
$582,767
$687,197
Portfolio
turnover
rate
............................
33.22%
19.85%
10.10%
64.94%
40.13%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
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Federal
Limited-Term
Tax-Free
Income
Fund
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part
of
these
financial
statements.
Annual
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69
a
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2022
2021
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.56
$10.59
$10.35
$10.28
$10.37
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.10
0.14
0.18
0.16
0.07
Net
realized
and
unrealized
gains
(losses)
...........
(0.22)
(0.03)
0.25
0.07
(0.10)
Total
from
investment
operations
....................
(0.12)
0.11
0.43
0.23
(0.03)
Less
distributions
from:
Net
investment
income
..........................
(0.10)
(0.14)
(0.19)
(0.16)
(0.06)
Net
asset
value,
end
of
year
.......................
$10.34
$10.56
$10.59
$10.35
$10.28
Total
return
e
...................................
(1.12)%
1.03%
4.18%
2.29%
(0.32)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
......
0.53%
0.54%
0.54%
0.55%
0.54%
Expenses
net
of
waiver
and
payments
by
affiliates
.......
0.37%
g
0.37%
g
0.36%
g
0.36%
g
0.44%
Net
investment
income
...........................
0.98%
1.30%
1.70%
1.52%
1.03%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$86,417
$70,227
$51,952
$47,182
$51,656
Portfolio
turnover
rate
............................
33.22%
19.85%
10.10%
64.94%
40.13%
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Federal
Limited-Term
Tax-Free
Income
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The
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part
of
these
financial
statements.
70
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.57
$10.60
$10.35
$10.29
$10.37
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.10
0.13
0.17
0.15
0.10
Net
realized
and
unrealized
gains
(losses)
...........
(0.22)
(0.02)
0.27
0.07
(0.08)
Total
from
investment
operations
....................
(0.12)
0.11
0.44
0.22
0.02
Less
distributions
from:
Net
investment
income
..........................
(0.10)
(0.14)
(0.19)
(0.16)
(0.10)
Net
asset
value,
end
of
year
.......................
$10.35
$10.57
$10.60
$10.35
$10.29
Total
return
....................................
(1.05)%
1.00%
4.14%
2.16%
0.16%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.55%
0.56%
0.56%
0.58%
0.56%
Expenses
net
of
waiver
and
payments
by
affiliates
.......
0.40%
d
0.40%
d
0.39%
d
0.40%
d
0.48%
Net
investment
income
...........................
0.95%
1.26%
1.67%
1.48%
0.99%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$542,557
$517,221
$291,452
$274,316
$247,708
Portfolio
turnover
rate
............................
33.22
%
19.85%
10.10%
64.94%
40.13%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments,
February
28,
2022
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
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71
a
a
Shares
a
Value
a
Management
Investment
Companies
2.4%
Capital
Markets
2.4%
a
Franklin
Liberty
Federal
Tax-Free
Bond
ETF
...............................
1,300,000
$
33,826,000
Total
Management
Investment
Companies
(Cost
$33,900,950)
....................
33,826,000
Principal
Amount
a
a
a
a
b
Senior
Floating
Rate
Interests
0.4%
Equity
Real
Estate
Investment
Trusts
(REITs)
0.3%
c,d
Centennial
Gardens
LP
,
Delayed
Draw
Term
Loan
,
1.8%
,
(3-month
USD
LIBOR
+
1
.
6
%),
7
/
27
/24
....................................................
$
4,146,717
4,146,717
Real
Estate
Management
&
Development
0.1%
c,d
TBG
Hillcrest
Senior
II
LP
,
Delayed
Draw
Term
Loan
,
1.8%
,
(3-month
USD
LIBOR
+
1
.
6
%),
7
/
26
/
24
....................................................
1,230,754
1,230,754
Total
Senior
Floating
Rate
Interests
(Cost
$5,377,471)
...........................
5,377,471
Municipal
Bonds
82.4%
Alabama
2.9%
Black
Belt
Energy
Gas
District
,
Revenue,
2021
A,
Refunding,
4%,
6/01/22
...............................
340,000
342,696
Revenue,
2021
A,
Refunding,
4%,
12/01/22
..............................
490,000
500,821
Revenue,
2021
A,
Refunding,
4%,
6/01/23
...............................
400,000
413,934
Revenue,
2021
A,
Refunding,
4%,
6/01/24
...............................
400,000
422,584
e
Revenue,
2021
B,
Mandatory
Put,
4%,
12/01/26
...........................
20,000,000
21,584,192
e
Industrial
Development
Board
of
the
City
of
Mobile
Alabama
,
Alabama
Power
Co.,
Revenue,
2007
A,
Mandatory
Put,
1%,
6/26/25
...........
4,000,000
3,891,902
Alabama
Power
Co.,
Revenue,
2008,
Mandatory
Put,
2.9%,
12/12/23
...........
7,550,000
7,741,257
Southeast
Energy
Authority
A
Cooperative
District
,
Revenue,
2021
A,
4%,
10/01/22
.......................................
355,000
360,997
Revenue,
2021
A,
4%,
10/01/23
.......................................
450,000
467,766
Revenue,
2021
A,
4%,
10/01/24
.......................................
725,000
767,102
Special
Care
Facilities
Financing
Authority
of
the
City
of
Pell
City
Alabama
,
Noland
Obligated
Group,
Revenue,
2021
A,
Refunding,
5%,
12/01/22
...........
1,445,000
1,488,077
Noland
Obligated
Group,
Revenue,
2021
A,
Refunding,
5%,
12/01/24
...........
1,500,000
1,639,603
Noland
Obligated
Group,
Revenue,
2021
A,
Refunding,
5%,
12/01/26
...........
1,030,000
1,182,229
40,803,160
Alaska
0.8%
Borough
of
Matanuska-Susitna
,
State
of
Alaska
Department
of
Administration
,
Revenue
,
2015
,
Refunding
,
5.25
%
,
9/01/29
..............................
10,000,000
11,097,618
Arizona
1.4%
Arizona
Industrial
Development
Authority
,
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2020
A,
4%,
11/01/24
.......................................................
1,000,000
1,065,067
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2020
A,
4%,
11/01/25
.......................................................
1,000,000
1,084,798
Kipp
New
York,
Inc.
Gerard
Facility,
Revenue,
2021
C,
1.4%,
7/01/22
...........
175,000
174,621
Kipp
New
York,
Inc.
Gerard
Facility,
Revenue,
2021
C,
1.8%,
7/01/24
...........
450,000
443,166
e
Maricopa
County
Industrial
Development
Authority
,
HonorHealth
Obligated
Group
,
Revenue
,
2019
C
,
Mandatory
Put
,
1
%
,
(
SIFMA
Municipal
Swap
Index
+
0.8
%
),
9/01/24
.........................................................
17,000,000
17,079,254
19,846,906
California
3.1%
California
Community
Choice
Financing
Authority
,
Revenue,
2021
B-1,
4%,
8/01/25
......................................
535,000
578,787
Revenue,
2021
B-1,
4%,
2/01/26
......................................
850,000
926,951
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
72
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
California
Community
Choice
Financing
Authority,
(continued)
Revenue,
2021
B-1,
4%,
8/01/26
......................................
$
325,000
$
357,625
Revenue,
2021
B-1,
4%,
8/01/27
......................................
400,000
445,409
Revenue,
2021
B-1,
4%,
2/01/28
......................................
375,000
419,721
Revenue,
2021
B-1,
4%,
8/01/28
......................................
470,000
529,405
California
County
Tobacco
Securitization
Agency
,
Revenue,
Senior
Lien,
2020
A,
Refunding,
4%,
6/01/22
.....................
400,000
402,778
Revenue,
Senior
Lien,
2020
A,
Refunding,
4%,
6/01/23
.....................
400,000
411,793
e
California
Health
Facilities
Financing
Authority
,
Providence
St.
Joseph
Health
Obligated
Group
,
Revenue
,
2016
B-3
,
Refunding
,
Mandatory
Put
,
2
%
,
10/01/25
...........
13,340,000
13,580,355
e
California
Municipal
Finance
Authority
,
Republic
Services,
Inc.
,
Revenue
,
2021
A
,
Refunding
,
Mandatory
Put
,
0.3
%
,
4/01/22
................................
7,500,000
7,496,104
California
Statewide
Communities
Development
Authority
,
e
Southern
California
Edison
Co.,
Revenue,
D,
Refunding,
Mandatory
Put,
2.625%,
12/01/23
.......................................................
3,000,000
3,058,923
Viamonte
Senior
Living
1,
Inc.,
Revenue,
2018
B-3,
California
Mortgage
Insured,
3%,
7/01/27
........................................................
3,500,000
3,504,475
Mount
San
Antonio
Community
College
District
,
GO
,
2017
,
ETM,
Zero
Cpn
.,
4/01/22
.
10,000,000
9,995,735
San
Diego
County
Regional
Airport
Authority
,
Revenue
,
2021
C
,
Refunding
,
0.454
%
,
7/01/22
.........................................................
1,500,000
1,498,722
43,206,783
Colorado
1.9%
Denver
City
&
County
School
District
No.
1
,
GO
,
2012
B
,
4
%
,
12/01/27
...........
7,480,000
7,648,593
Fort
Carson
Family
Housing
LLC
,
Revenue
,
1999
,
NATL
Insured
,
7.86
%
,
11/15/29
..
14,770,000
17,641,731
Regional
Transportation
District
,
Denver
Transit
Partners
LLC,
Revenue,
2020
A,
Refunding,
5%,
1/15/24
........
400,000
425,958
Denver
Transit
Partners
LLC,
Revenue,
2020
A,
Refunding,
5%,
7/15/24
........
300,000
323,040
Denver
Transit
Partners
LLC,
Revenue,
2020
A,
Refunding,
5%,
1/15/25
........
325,000
354,244
Denver
Transit
Partners
LLC,
Revenue,
2020
A,
Refunding,
5%,
7/15/25
........
400,000
441,560
26,835,126
Connecticut
0.0%
†
f
Connecticut
State
Health
&
Educational
Facilities
Authority
,
Stamford
Hospital
Obligated
Group
(The),
Revenue,
M,
Refunding,
5%,
7/01/23
...
175,000
183,126
Stamford
Hospital
Obligated
Group
(The),
Revenue,
M,
Refunding,
5%,
7/01/24
...
175,000
187,688
Stamford
Hospital
Obligated
Group
(The),
Revenue,
M,
Refunding,
5%,
7/01/25
...
170,000
187,012
557,826
Delaware
0.4%
e
Delaware
State
Economic
Development
Authority
,
NRG
Energy,
Inc.
,
Revenue
,
2020
A
,
Refunding
,
Mandatory
Put
,
1.25
%
,
10/01/25
..............................
5,000,000
4,865,722
Florida
2.0%
Centre
Lake
Community
Development
District
,
Special
Assessment
,
2021
,
2.75
%
,
5/01/24
.........................................................
215,000
218,486
City
of
Pompano
Beach
,
John
Knox
Village
of
Florida,
Inc.
Obligated
Group
,
Revenue
,
2021
B-2
,
1.45
%
,
1/01/27
............................................
2,000,000
1,897,954
County
of
Escambia
,
Florida
Power
&
Light
Co.
,
Revenue
,
2003
,
Refunding
,
2.6
%
,
6/01/23
.........................................................
5,000,000
5,087,781
e
Florida
Development
Finance
Corp.
,
Brightline
Trains
Florida
LLC
,
Revenue
,
2021
A
,
Mandatory
Put
,
0.3
%
,
7/01/22
........................................
2,150,000
2,147,361
Florida
Municipal
Power
Agency
,
All-Requirements
Power
Supply
Project
,
Revenue
,
2017
A
,
Refunding
,
5
%
,
10/01/25
......................................
1,000,000
1,123,742
Jacksonville
Transportation
Authority
,
Revenue,
Senior
Lien,
2020,
5%,
8/01/22
................................
1,615,000
1,643,559
Revenue,
Senior
Lien,
2020,
5%,
8/01/23
................................
1,720,000
1,813,458
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
73
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
Jacksonville
Transportation
Authority,
(continued)
Revenue,
Senior
Lien,
2020,
5%,
8/01/24
................................
$
1,805,000
$
1,959,869
Revenue,
Senior
Lien,
2020,
5%,
8/01/25
................................
1,800,000
2,009,513
Revenue,
Senior
Lien,
2020,
5%,
8/01/26
................................
1,940,000
2,221,489
Orlando-Orange
County
Expressway
Authority
,
Central
Florida
Expressway
Authority
,
Revenue
,
2012
,
Pre-Refunded
,
AGMC
Insured
,
5
%
,
7/01/24
.................
4,000,000
4,057,701
River
Hall
Community
Development
District
,
Special
Assessment,
2021
A-1,
Refunding,
3%,
5/01/22
.....................
190,000
190,418
Special
Assessment,
2021
A-1,
Refunding,
3%,
5/01/23
.....................
175,000
177,223
Special
Assessment,
2021
A-1,
Refunding,
3%,
5/01/24
.....................
235,000
239,247
Special
Assessment,
2021
A-1,
Refunding,
3%,
5/01/25
.....................
180,000
183,323
Special
Assessment,
2021
A-1,
Refunding,
3%,
5/01/26
.....................
220,000
223,099
State
of
Florida
,
Department
of
Transportation
Turnpike
System
,
Revenue
,
2012
A
,
2.875
%
,
7/01/25
...................................................
3,000,000
3,015,546
28,209,769
Georgia
4.6%
e
Atlanta
Urban
Residential
Finance
Authority
,
Hollywood
Shawnee
Housing
Partners
LP,
Revenue,
2021
A,
Mandatory
Put,
0.24%,
1/01/23
........................................................
1,250,000
1,240,935
g
Hollywood
Shawnee
Housing
Partners
LP,
Revenue,
144A,
2021
B,
Mandatory
Put,
1.35%,
1/01/23
..................................................
2,600,000
2,599,354
City
of
Atlanta
,
Department
of
Aviation,
Revenue,
2020
A,
Refunding,
5%,
7/01/24
.............
2,500,000
2,714,315
Department
of
Aviation,
Revenue,
2020
A,
Refunding,
5%,
7/01/25
.............
1,500,000
1,675,390
e
Development
Authority
of
Monroe
County
(The)
,
Georgia
Power
Co.
,
Revenue,
First
Series
,
2009
,
Refunding
,
Mandatory
Put
,
1
%
,
8/21/26
......................
2,000,000
1,938,608
e
,
g
Housing
Authority
of
Clayton
County
Facilities
Holding
Co.
LLC
(The)
,
Riverwood
Housing
Partners
LP
,
Revenue
,
144A,
2021
B
,
Mandatory
Put
,
1.4
%
,
4/01/23
.....
2,000,000
1,998,946
e
Macon-Bibb
County
Housing
Authority
,
Green
Meadows
Housing
Partners
LP
,
Revenue
,
2021
A
,
Mandatory
Put
,
0.25
%
,
10/01/22
........................
2,150,000
2,141,775
Main
Street
Natural
Gas,
Inc.
,
e
Revenue,
2018
A,
Mandatory
Put,
4%,
9/01/23
............................
10,025,000
10,406,360
Revenue,
2021
C,
4%,
12/01/22
.......................................
500,000
510,588
Revenue,
2021
C,
4%,
12/01/23
.......................................
725,000
755,854
Revenue,
2021
C,
4%,
12/01/24
.......................................
735,000
780,234
e,g
Revenue,
144A,
2022
C,
Mandatory
Put,
4%,
11/01/27
......................
10,000,000
10,863,565
Metropolitan
Atlanta
Rapid
Transit
Authority
,
Revenue
,
2018
A
,
Refunding
,
3
%
,
7/01/23
11,000,000
11,295,714
Private
Colleges
&
Universities
Authority
,
Corp.
of
Mercer
University
(The),
Revenue,
2021,
Refunding,
5%,
10/01/22
......
300,000
307,171
Corp.
of
Mercer
University
(The),
Revenue,
2021,
Refunding,
5%,
10/01/23
......
300,000
317,777
Corp.
of
Mercer
University
(The),
Revenue,
2021,
Refunding,
5%,
10/01/24
......
400,000
433,392
Corp.
of
Mercer
University
(The),
Revenue,
2021,
Refunding,
5%,
10/01/25
......
425,000
471,928
State
of
Georgia
,
GO
,
2016
A
,
5
%
,
2/01/23
................................
12,375,000
12,846,612
63,298,518
Hawaii
2.1%
State
of
Hawaii
,
GO
,
EF
,
Pre-Refunded
,
5
%
,
11/01/23
........................
10,000,000
10,282,193
University
of
Hawaii
,
Revenue,
2020
B,
Refunding,
5%,
10/01/24
..............................
4,040,000
4,423,467
Revenue,
2020
B,
Refunding,
5%,
10/01/25
..............................
5,165,000
5,825,350
Revenue,
2020
B,
Refunding,
5%,
10/01/26
..............................
7,225,000
8,367,148
28,898,158
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
74
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Illinois
8.5%
Chicago
Board
of
Education
,
GO
,
2018
A
,
Refunding
,
AGMC
Insured
,
5
%
,
12/01/23
.
$
1,000,000
$
1,063,130
Chicago
Park
District
,
GO,
2020
F-2,
Refunding,
5%,
1/01/25
..................................
350,000
383,457
GO,
2020
F-2,
Refunding,
5%,
1/01/26
..................................
500,000
561,752
GO,
2020
F-2,
Refunding,
5%,
1/01/27
..................................
550,000
632,252
Chicago
Transit
Authority
Capital
Grant
Receipts
,
Revenue
,
2021
,
Refunding
,
5
%
,
6/01/24
.........................................................
1,425,000
1,538,168
City
of
Chicago
,
GO,
2015
C,
Refunding,
5%,
1/01/25
...................................
1,900,000
2,065,299
GO,
2020
A,
Refunding,
5%,
1/01/28
...................................
3,100,000
3,529,000
City
of
Moline
,
GO,
2021
C,
AGMC
Insured,
0.542%,
12/01/22
...........................
500,000
497,492
GO,
2021
C,
AGMC
Insured,
0.702%,
12/01/23
...........................
1,175,000
1,158,144
GO,
2021
C,
AGMC
Insured,
1.151%,
12/01/24
...........................
580,000
569,989
GO,
2021
C,
AGMC
Insured,
1.439%,
12/01/25
...........................
925,000
908,292
County
of
Cook
,
GO,
2021
A,
Refunding,
5%,
11/15/22
..................................
5,000,000
5,144,416
Sales
Tax,
Revenue,
2021
A,
Refunding,
5%,
11/15/29
......................
845,000
1,033,717
e
Illinois
Development
Finance
Authority
,
Waste
Management,
Inc.
,
Revenue
,
2019
,
Mandatory
Put
,
0.4
%
,
11/01/22
.......................................
10,000,000
9,939,973
Illinois
Finance
Authority
,
Christian
Homes,
Inc.
Obligated
Group,
Revenue,
2021
A,
4%,
5/15/27
.........
2,810,000
3,070,319
e
Field
Museum
of
Natural
History,
Revenue,
2019,
Refunding,
Mandatory
Put,
0.572%,
9/01/22
.................................................
8,400,000
8,400,276
e
OSF
Healthcare
System
Obligated
Group,
Revenue,
2020
B-1,
Refunding,
Mandatory
Put,
5%,
11/15/24
.......................................
1,250,000
1,343,498
f
Metropolitan
Pier
&
Exposition
Authority
,
Revenue
,
2022
A
,
Refunding
,
3
%
,
6/15/24
..
2,500,000
2,553,370
Railsplitter
Tobacco
Settlement
Authority
,
Revenue
,
2017
,
5
%
,
6/01/26
...........
2,000,000
2,243,627
State
of
Illinois
,
GO,
2010-4,
AGMC
Insured,
6.875%,
7/01/25
............................
1,000,000
1,079,842
GO,
2016,
Refunding,
5%,
2/01/28
.....................................
2,000,000
2,260,474
GO,
2016,
Refunding,
5%,
2/01/29
.....................................
750,000
844,549
GO,
2017
D,
5%,
11/01/24
...........................................
5,000,000
5,449,623
GO,
2017
D,
5%,
11/01/25
...........................................
10,000,000
11,107,875
GO,
2018
A,
6%,
5/01/25
............................................
6,000,000
6,791,990
GO,
2018
A,
Refunding,
5%,
10/01/28
..................................
525,000
613,256
GO,
2018
A,
Refunding,
5%,
10/01/29
..................................
375,000
436,874
GO,
2018
B,
Refunding,
5%,
10/01/31
..................................
625,000
718,004
GO,
2019
B,
5%,
11/01/30
...........................................
375,000
441,586
GO,
2020,
5.5%,
5/01/30
............................................
1,710,000
2,065,598
Sales
Tax,
Revenue,
2021
A,
4%,
6/15/24
...............................
5,000,000
5,287,548
Sales
Tax,
Revenue,
Junior
Lien,
2021
C,
Refunding,
5%,
6/15/22
.............
4,000,000
4,048,392
Sales
Tax,
Revenue,
Junior
Lien,
2021
C,
Refunding,
5%,
6/15/23
.............
3,000,000
3,145,147
Sales
Tax,
Revenue,
Junior
Lien,
2021
C,
Refunding,
5%,
6/15/24
.............
3,300,000
3,563,662
Sales
Tax,
Revenue,
Junior
Lien,
2021
C,
Refunding,
5%,
6/15/25
.............
2,000,000
2,213,443
University
of
Illinois
,
Auxiliary
Facilities
System,
Revenue,
2021
A,
Refunding,
3%,
4/01/22
..........
8,950,000
8,967,901
Auxiliary
Facilities
System,
Revenue,
2021
A,
Refunding,
3%,
4/01/25
..........
11,660,000
12,235,892
g
Upper
Illinois
River
Valley
Development
Authority
,
2018
IAVF
Timber
Oaks
&
Prairie
View
Obligated
Group
,
Revenue
,
144A,
2020
B
,
Refunding
,
4.25
%
,
3/01/23
......
563,000
565,424
118,473,251
Indiana
0.7%
g
City
of
Goshen
,
Green
Oaks
of
Goshen
LLC
,
Revenue
,
144A,
2021
B
,
4.75
%
,
8/01/24
1,560,000
1,534,010
Indiana
Finance
Authority
,
Greencroft
Goshen
Obligated
Group,
Revenue,
2021
B,
Refunding,
3.25%,
11/15/23
195,000
192,628
f
Greencroft
Goshen
Obligated
Group,
Revenue,
2023
A,
Refunding,
4%,
11/15/23
..
1,000,000
1,002,745
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
75
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Indiana
(continued)
Indiana
Finance
Authority,
(continued)
f
Greencroft
Goshen
Obligated
Group,
Revenue,
2023
A,
Refunding,
4%,
11/15/24
..
$
1,000,000
$
1,012,578
f
Greencroft
Goshen
Obligated
Group,
Revenue,
2023
A,
Refunding,
4%,
11/15/25
..
1,000,000
1,018,677
Indianapolis
Power
&
Light
Co.,
Revenue,
2021
B,
Refunding,
0.65%,
8/01/25
....
4,500,000
4,275,781
9,036,419
Iowa
0.8%
Des
Moines
Independent
Community
School
District
,
Sales
Services
&
Use
Tax
,
Revenue
,
2018
,
AGMC
Insured
,
3
%
,
6/01/29
.............................
9,300,000
9,811,011
Iowa
Tobacco
Settlement
Authority
,
Revenue
,
2021
B-1
,
2
,
Refunding
,
0.375
%
,
6/01/30
715,000
713,649
10,524,660
Kansas
0.1%
Reno
County
Unified
School
District
No.
308
Hutchinson
,
GO
,
2019
,
Refunding
,
5
%
,
9/01/27
.........................................................
1,575,000
1,850,557
Kentucky
3.1%
County
of
Trimble
,
Louisville
Gas
and
Electric
Co.
,
Revenue
,
2001
A
,
Refunding
,
0.625
%
,
9/01/26
...................................................
3,375,000
3,164,705
Eastern
Kentucky
University
,
Revenue,
2021
A,
Refunding,
3.2%,
10/01/22
.............................
1,050,000
1,063,504
Revenue,
2021
A,
Refunding,
3.25%,
10/01/23
............................
1,080,000
1,111,918
Revenue,
2021
A,
Refunding,
3.5%,
10/01/24
.............................
1,120,000
1,175,311
Revenue,
2021
A,
Refunding,
3.5%,
10/01/25
.............................
1,155,000
1,230,175
Revenue,
2021
A,
Refunding,
4%,
10/01/26
..............................
1,205,000
1,326,475
Revenue,
2021
A,
Refunding,
4%,
10/01/27
..............................
1,255,000
1,400,686
Revenue,
2021
A,
Refunding,
4%,
10/01/28
..............................
1,305,000
1,469,499
e
Kentucky
Public
Energy
Authority
,
Revenue,
2018
A,
Mandatory
Put,
4%,
4/01/24
............................
10,000,000
10,458,427
Revenue,
2020
A,
Mandatory
Put,
4%,
6/01/26
............................
10,000,000
10,813,737
f
Revenue,
2022
A-2,
Mandatory
Put,
2.437%,
8/01/30
.......................
9,375,000
9,345,148
42,559,585
Louisiana
5.4%
City
of
New
Orleans
,
Sewerage
Service,
Revenue,
2020
B,
5%,
6/01/26
.........................
450,000
512,099
Sewerage
Service,
Revenue,
2020
B,
5%,
6/01/27
.........................
600,000
698,430
Sewerage
Service,
Revenue,
2020
B,
5%,
6/01/28
.........................
550,000
653,700
e
Lake
Charles
Harbor
&
Terminal
District
,
Big
Lake
Fuels
LLC
,
Revenue
,
2021
,
Mandatory
Put
,
1
%
,
12/01/24
.........................................
10,000,000
9,817,699
g
Louisiana
Local
Government
Environmental
Facilities
&
Community
Development
Authority
,
Invest
in
Americas
Veterans
Foundation
Louisiana,
Inc.
,
Revenue
,
144A,
2020
A
,
Refunding
,
2.75
%
,
12/01/25
...................................
902,000
895,289
Louisiana
Public
Facilities
Authority
,
Loyola
University
New
Orleans,
Revenue,
2021,
Refunding,
5%,
10/01/25
.......
250,000
274,865
e
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2020
B,
Refunding,
Mandatory
Put,
5%,
5/15/25
........................................
7,500,000
8,274,131
Louisiana
Stadium
&
Exposition
District
,
Revenue,
2020,
5%,
7/03/23
.........................................
4,650,000
4,794,988
g
Revenue,
144A,
2022
A,
1.872%,
7/03/23
...............................
3,000,000
2,986,497
e
Parish
of
St.
John
the
Baptist
,
Marathon
Oil
Corp.
,
Revenue
,
2017
B-1
,
Refunding
,
Mandatory
Put
,
2.125
%
,
7/01/24
......................................
17,100,000
17,198,801
State
of
Louisiana
,
GO,
2013
A,
Pre-Refunded,
4%,
5/15/31
................................
15,225,000
15,785,760
GO,
2019
A,
5%,
3/01/31
............................................
10,870,000
13,255,796
75,148,055
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
76
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Maryland
3.3%
City
of
Baltimore
,
GO
,
2017
B
,
Refunding
,
5
%
,
10/15/25
......................
$
5,000,000
$
5,649,281
City
of
Cumberland
,
GO,
2021,
Refunding,
AGMC
Insured,
5%,
6/01/24
.........................
395,000
426,827
GO,
2021,
Refunding,
AGMC
Insured,
5%,
6/01/25
.........................
455,000
505,605
e
Maryland
Health
&
Higher
Educational
Facilities
Authority
,
University
of
Maryland
Medical
System
Obligated
Group
,
Revenue
,
2020
B-2
,
Refunding
,
Mandatory
Put
,
5
%
,
7/01/27
......................................................
5,110,000
5,881,868
State
of
Maryland
,
GO
,
2017
B
,
Refunding
,
5
%
,
8/01/26
......................
12,330,000
14,261,624
Town
of
Chestertown
,
Washington
College,
Revenue,
2021
A,
Refunding,
5%,
3/01/26
...............
1,035,000
1,161,352
Washington
College,
Revenue,
2021
A,
Refunding,
5%,
3/01/27
...............
1,215,000
1,391,478
Washington
Suburban
Sanitary
Commission
,
Revenue,
2013,
Pre-Refunded,
4%,
6/01/28
..............................
5,500,000
5,708,334
Revenue,
2013,
Pre-Refunded,
4%,
6/01/30
..............................
5,500,000
5,708,334
Revenue,
2013,
Pre-Refunded,
4%,
6/01/31
..............................
5,500,000
5,708,334
46,403,037
Massachusetts
0.5%
e
Massachusetts
Development
Finance
Agency
,
Mass
General
Brigham,
Inc.,
Revenue,
2017
S-4,
Refunding,
Mandatory
Put,
5%,
1/25/24
........................................................
5,000,000
5,356,766
President
&
Trustees
of
Williams
College,
Revenue,
2011
N,
Mandatory
Put,
0.45%,
7/01/25
........................................................
1,000,000
968,416
6,325,182
Michigan
0.8%
Michigan
Finance
Authority
,
Henry
Ford
Health
System
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
11/15/27
.......................................................
2,000,000
2,306,853
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
B-1,
2,
Refunding,
1.25%,
6/01/30
225,000
225,001
Michigan
State
Housing
Development
Authority
,
Revenue
,
2019
A-1
,
1.5
%
,
10/01/22
.
970,000
973,562
e
Michigan
Strategic
Fund
,
Consumers
Energy
Co.,
Revenue,
2005,
Mandatory
Put,
0.875%,
10/08/26
......
4,350,000
4,246,750
Waste
Management
of
Michigan,
Inc.,
Revenue,
2001,
Mandatory
Put,
0.58%,
8/01/24
........................................................
3,300,000
3,188,585
10,940,751
Minnesota
1.1%
e
Dakota
County
Community
Development
Agency
,
Eagan
AH
I
LLLP
,
Revenue
,
2020
,
Mandatory
Put
,
0.35
%
,
6/01/23
.......................................
6,000,000
5,932,849
Farmington
Independent
School
District
No.
192
,
GO
,
2015
C
,
Refunding
,
5
%
,
2/01/24
6,065,000
6,498,576
Minnesota
Higher
Education
Facilities
Authority
,
University
of
St.
Thomas,
Revenue,
2019,
5%,
10/01/26
.....................
1,000,000
1,146,119
University
of
St.
Thomas,
Revenue,
2019,
5%,
10/01/27
.....................
1,000,000
1,172,423
14,749,967
Mississippi
0.2%
e
Mississippi
Business
Finance
Corp.
,
Waste
Management,
Inc.
,
Revenue
,
2004
,
Mandatory
Put
,
0.7
%
,
9/01/26
........................................
2,500,000
2,344,371
Mississippi
Home
Corp.
,
g
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A-5,
2.75%,
6/01/26
326,937
316,386
Patriot
Services
Group
Pascagoula
Portfolio
II
Obligated
Group,
Revenue,
2021
D-8,
2.9%,
6/01/26
...................................................
72,598
70,684
2,731,441
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
77
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Missouri
0.4%
Missouri
Development
Finance
Board
,
City
of
Independence,
Revenue,
2021,
Refunding,
5%,
3/01/22
...............
$
350,000
$
350,000
City
of
Independence,
Revenue,
2021,
Refunding,
5%,
3/01/23
...............
280,000
290,047
City
of
Independence,
Revenue,
2021,
Refunding,
5%,
3/01/24
...............
300,000
318,677
City
of
Independence,
Revenue,
2021,
Refunding,
5%,
3/01/25
...............
500,000
543,554
City
of
Independence,
Revenue,
2021,
Refunding,
5%,
3/01/26
...............
405,000
449,155
City
of
Independence,
Revenue,
2021,
Refunding,
5%,
3/01/27
...............
660,000
746,452
e
St.
Charles
County
Industrial
Development
Authority
,
Hidden
Valley
Housing
Partners
LP
,
Revenue
,
2021
,
Mandatory
Put
,
0.27
%
,
10/01/23
.......................
3,500,000
3,440,904
6,138,789
Montana
0.4%
e
Montana
Facility
Finance
Authority
,
Billings
Clinic
Obligated
Group
,
Revenue
,
2018
C
,
Refunding
,
Mandatory
Put
,
0.75
%
,
(
SIFMA
Municipal
Swap
Index
+
0.55
%
),
8/15/23
6,090,000
6,094,548
Nebraska
0.3%
Nebraska
Public
Power
District
,
Revenue,
2021
C,
Refunding,
5%,
1/01/23
...............................
1,500,000
1,551,909
Revenue,
2021
C,
Refunding,
5%,
1/01/24
...............................
2,500,000
2,674,974
4,226,883
Nevada
0.4%
Las
Vegas
Valley
Water
District
,
GO,
2020
D,
Refunding,
5%,
6/01/24
...................................
1,745,000
1,891,679
GO,
2020
D,
Refunding,
5%,
6/01/25
...................................
2,750,000
3,072,575
4,964,254
New
Hampshire
0.4%
e
New
Hampshire
Business
Finance
Authority
,
Waste
Management,
Inc.
,
Revenue
,
2018
A
,
Refunding
,
Mandatory
Put
,
0.575
%
,
(
SIFMA
Municipal
Swap
Index
+
0.375
%
),
7/01/24
.........................................................
5,000,000
4,973,938
New
Jersey
8.3%
Bergen
County
Improvement
Authority
(The)
,
Revenue
,
2020
A
,
Refunding
,
3
%
,
8/15/22
.........................................................
2,500,000
2,523,465
City
of
Newark
,
GO,
2020
A,
Refunding,
AGMC
Insured,
5%,
10/01/23
......................
1,000,000
1,056,016
GO,
2020
A,
Refunding,
AGMC
Insured,
5%,
10/01/24
......................
1,000,000
1,084,008
County
of
Atlantic
,
GO,
2020,
0.375%,
6/01/23
..........................................
1,730,000
1,716,478
GO,
2020,
0.375%,
6/01/24
..........................................
1,765,000
1,712,888
GO,
2020,
0.375%,
6/01/25
..........................................
1,800,000
1,719,256
County
of
Morris
,
GO
,
2021
,
2
%
,
2/01/26
.................................
4,215,000
4,305,463
County
of
Union
,
GO,
2020,
0.5%,
3/01/23
............................................
5,215,000
5,197,689
GO,
2020,
0.5%,
3/01/24
............................................
5,290,000
5,206,627
Garden
State
Preservation
Trust
,
Revenue
,
2005
A
,
AGMC
Insured
,
5.75
%
,
11/01/28
25,000,000
29,458,710
New
Jersey
Economic
Development
Authority
,
Revenue,
1997
A,
NATL
Insured,
7.425%,
2/15/29
.........................
3,000,000
3,669,608
h
Revenue,
FRN,
2019
A,
Refunding,
5.25%,
4/01/28
........................
5,000,000
5,890,567
e
New
Jersey-American
Water
Co.,
Inc.,
Revenue,
2019
B,
Refunding,
Mandatory
Put,
2.05%,
12/03/29
.................................................
7,500,000
7,581,120
d
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
FRN,
2013
I,
Refunding,
1.8%,
(SIFMA
Municipal
Swap
Index
+
1.6%),
3/01/28
.....................
12,170,000
12,288,623
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue,
2006
C,
AMBAC
Insured,
Zero
Cpn
.,
12/15/26
....................
10,000,000
8,982,627
Revenue,
2006
C,
BHAC
Insured,
Zero
Cpn
.,
12/15/27
......................
11,110,000
9,929,685
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
78
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
New
Jersey
(continued)
Newark
Board
of
Education
,
GO,
2021,
Refunding,
5%,
7/15/22
.....................................
$
130,000
$
132,091
GO,
2021,
Refunding,
5%,
7/15/23
.....................................
300,000
315,970
GO,
2021,
Refunding,
5%,
7/15/24
.....................................
400,000
432,178
State
of
New
Jersey
,
GO,
3%,
6/01/25
..................................................
2,000,000
2,038,936
GO,
2020
A,
5%,
6/01/29
............................................
3,700,000
4,477,336
GO,
2020
A,
4%,
6/01/30
............................................
5,000,000
5,746,940
115,466,281
New
Mexico
0.3%
e
City
of
Farmington
,
Public
Service
Co.
of
New
Mexico
,
Revenue
,
2010
A
,
Refunding
,
Mandatory
Put
,
0.875
%
,
10/01/26
.....................................
4,250,000
4,039,431
New
York
4.3%
City
of
New
York
,
GO
,
2019
A
,
Refunding
,
5
%
,
8/01/22
.......................
5,000,000
5,090,107
County
of
Suffolk
,
GO
,
2018
B
,
AGMC
Insured
,
4
%
,
10/15/28
..................
4,205,000
4,649,648
Metropolitan
Transportation
Authority
,
e
Revenue,
2012
G-4,
Refunding,
Mandatory
Put,
0.621%,
11/01/22
.............
6,205,000
6,218,601
Revenue,
2017
D,
Refunding,
5%,
11/15/25
..............................
3,775,000
4,222,036
Revenue,
2020
A-1,
5%,
2/01/23
......................................
8,250,000
8,537,770
e
New
York
City
Housing
Development
Corp.
,
Revenue
,
2021
H
,
Mandatory
Put
,
0.12
%
,
3/15/22
.........................................................
1,805,000
1,804,959
New
York
City
Industrial
Development
Agency
,
Queens
Ballpark
Co.
LLC,
Revenue,
2021
A,
Refunding,
AGMC
Insured,
5%,
1/01/24
1,000,000
1,068,291
Queens
Ballpark
Co.
LLC,
Revenue,
2021
A,
Refunding,
AGMC
Insured,
5%,
1/01/25
1,000,000
1,094,425
New
York
Liberty
Development
Corp.
,
Revenue
,
2021
A
,
Refunding
,
0.95
%
,
11/15/27
780,000
731,461
New
York
State
Dormitory
Authority
,
Cornell
University
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
7/01/26
......................................................
5,000,000
5,767,697
New
York
State
Energy
Research
&
Development
Authority
,
New
York
State
Electric
&
Gas
Corp.,
Revenue,
1994
D,
Refunding,
3.5%,
10/01/29
3,000,000
3,287,387
e
Rochester
Gas
and
Electric
Corp.,
Revenue,
1997
A,
Refunding,
Mandatory
Put,
3%,
7/01/25
........................................................
10,000,000
10,444,120
New
York
State
Housing
Finance
Agency
,
Revenue
,
2020
F
,
1.1
%
,
11/01/26
.......
2,860,000
2,792,510
New
York
Transportation
Development
Corp.
,
JFK
International
Air
Terminal
LLC,
Revenue,
2020
A,
Refunding,
5%,
12/01/25
...
500,000
547,382
JFK
International
Air
Terminal
LLC,
Revenue,
2020
C,
Refunding,
5%,
12/01/25
...
2,200,000
2,428,461
State
of
New
York
Mortgage
Agency
,
Revenue
,
212
,
2.95
%
,
4/01/25
.............
895,000
921,427
59,606,282
North
Carolina
0.8%
City
of
Charlotte
,
COP
,
2013
B
,
3
%
,
6/01/22
...............................
2,740,000
2,745,483
North
Carolina
Capital
Facilities
Finance
Agency
,
Campbell
University,
Inc.,
Revenue,
2021
A,
Refunding,
5%,
10/01/24
..........
1,200,000
1,297,642
Campbell
University,
Inc.,
Revenue,
2021
A,
Refunding,
5%,
10/01/25
..........
1,000,000
1,106,386
Campbell
University,
Inc.,
Revenue,
2021
A,
Refunding,
5%,
10/01/26
..........
850,000
958,581
North
Carolina
State
University
at
Raleigh
,
Revenue,
2018,
Refunding,
5%,
10/01/26
................................
3,000,000
3,478,585
Revenue,
2018,
Refunding,
5%,
10/01/27
................................
1,500,000
1,783,230
11,369,907
North
Dakota
0.7%
Cass
County
Joint
Water
Resource
District
,
GO
,
2021
A
,
Refunding
,
0.48
%
,
5/01/24
.
5,000,000
4,877,698
City
of
Grand
Forks
,
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
12/01/27
..
1,125,000
1,307,520
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
12/01/28
..
1,680,000
1,984,790
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
79
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
North
Dakota
(continued)
City
of
Horace
,
GO
,
2021
B
,
Refunding
,
0.6
%
,
10/01/23
......................
$
1,600,000
$
1,569,971
9,739,979
Ohio
2.9%
American
Municipal
Power,
Inc.
,
Revenue
,
2009
B
,
5.355
%
,
2/15/24
.............
4,465,000
4,689,743
Buckeye
Tobacco
Settlement
Financing
Authority
,
Revenue,
Senior
Lien,
2020
A-1,
1,
Refunding,
1.65%,
6/01/23
................
2,500,000
2,501,321
Revenue,
Senior
Lien,
2020
A-1,
1,
Refunding,
1.709%,
6/01/24
...............
6,225,000
6,170,476
Revenue,
Senior
Lien,
2020
A-1,
1,
Refunding,
1.809%,
6/01/25
...............
1,850,000
1,819,834
Hillsdale
Local
School
District
,
COP
,
2020
,
BAM
Insured
,
4
%
,
12/01/22
...........
1,200,000
1,227,593
Ohio
Water
Development
Authority
,
Revenue,
2018,
5%,
6/01/28
.........................................
7,000,000
8,424,423
Water
Pollution
Control
Loan
Fund,
Revenue,
2019
A,
5%,
6/01/29
.............
8,500,000
10,440,913
Sycamore
Community
City
School
District
,
GO
,
2020
,
4
%
,
12/01/23
.............
2,560,000
2,688,027
Youngstown
State
University
,
Revenue,
2021,
Refunding,
AGMC
Insured,
4%,
12/15/24
...................
645,000
693,024
Revenue,
2021,
Refunding,
AGMC
Insured,
4%,
12/15/25
...................
580,000
636,188
Revenue,
2021,
Refunding,
AGMC
Insured,
4%,
12/15/26
...................
850,000
949,675
40,241,217
Oklahoma
0.4%
Oklahoma
Capitol
Improvement
Authority
,
Oklahoma
State
Regents
for
Higher
Education
,
Revenue
,
2021
A
,
0.453
%
,
7/01/22
............................
575,000
574,603
Oklahoma
County
Finance
Authority
,
Oklahoma
County
Independent
School
District
No.
52
Midwest
City-Del
City
,
Revenue
,
2018
,
5
%
,
10/01/22
..................
1,000,000
1,024,318
Oklahoma
State
University
,
Revenue
,
2021
A
,
Refunding
,
5
%
,
9/01/23
...........
705,000
747,029
Tulsa
County
Industrial
Authority
,
Tulsa
County
Independent
School
District
No.
11
Owasso,
Revenue,
2018,
5%,
9/01/22
........................................................
1,500,000
1,531,632
Tulsa
County
Independent
School
District
No.
11
Owasso,
Revenue,
2018,
5%,
9/01/23
........................................................
1,170,000
1,237,048
5,114,630
Oregon
0.8%
Deschutes
&
Jefferson
Counties
School
District
No.
2J
Redmond
,
GO
,
2021
,
3
%
,
6/15/25
.........................................................
850,000
896,567
Salem-Keizer
School
District
No.
24J
,
GO
,
2018
,
5
%
,
6/15/25
..................
2,000,000
2,237,843
State
of
Oregon
,
GO,
2015
B,
Refunding,
5%,
8/01/27
...................................
2,785,000
3,122,018
Department
of
Transportation,
Revenue,
Senior
Lien,
2012
A,
Refunding,
5%,
11/15/22
.......................................................
5,000,000
5,150,525
11,406,953
Pennsylvania
4.3%
Allentown
Neighborhood
Improvement
Zone
Development
Authority
,
Revenue,
2022,
Refunding,
5%,
5/01/24
.................................
150,000
160,242
Revenue,
2022,
Refunding,
5%,
5/01/25
.................................
500,000
547,155
Revenue,
2022,
Refunding,
5%,
5/01/26
.................................
500,000
557,953
Revenue,
2022,
Refunding,
5%,
5/01/27
.................................
590,000
671,134
e
Bethlehem
Area
School
District
Authority
,
Revenue
,
2021
A
,
Refunding
,
Mandatory
Put
,
0.384
%
,
(
SOFR
+
0.35
%
),
11/01/25
................................
1,995,000
1,982,758
e
Geisinger
Authority
,
Geisinger
Health
System
Obligated
Group
,
Revenue
,
2014
B
,
Refunding
,
Mandatory
Put
,
1.21
%
,
(
1-month
USD
LIBOR
+
1.07
%
),
6/01/24
......
10,000,000
10,073,697
e
Lehigh
County
Industrial
Development
Authority
,
PPL
Electric
Utilities
Corp.
,
Revenue
,
2016
A
,
Refunding
,
Mandatory
Put
,
1.8
%
,
9/01/22
.........................
10,000,000
10,032,975
Pennsylvania
Economic
Development
Financing
Authority
,
e
Republic
Services,
Inc.,
Revenue,
2019
B-2,
Mandatory
Put,
0.3%,
7/15/22
......
2,500,000
2,493,577
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
80
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Pennsylvania
(continued)
Pennsylvania
Economic
Development
Financing
Authority,
(continued)
UPMC
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
11/15/29
...........
$
1,230,000
$
1,445,014
e
Waste
Management,
Inc.,
Revenue,
2021
A,
Mandatory
Put,
0.6%,
6/03/24
......
6,000,000
5,972,633
e
Waste
Management,
Inc.,
Revenue,
2021
B,
Refunding,
Mandatory
Put,
1.1%,
11/02/26
.......................................................
4,000,000
3,812,712
Philadelphia
Authority
for
Industrial
Development
,
City
of
Philadelphia
,
Revenue
,
1999
B
,
AMBAC
Insured
,
Zero
Cpn
.,
4/15/24
.................................
4,100,000
3,921,042
Philadelphia
Gas
Works
Co.
,
Revenue,
Sixteenth
A,
AGMC
Insured,
5%,
8/01/25
........................
500,000
560,506
Revenue,
Sixteenth
A,
AGMC
Insured,
5%,
8/01/26
........................
600,000
685,680
d
University
of
Pittsburgh-of
the
Commonwealth
System
of
Higher
Education
,
Revenue
,
FRN
,
2019
,
0.56
%
,
(
SIFMA
Municipal
Swap
Index
+
0.36
%
),
2/15/24
...........
7,750,000
7,775,140
Westmoreland
County
Industrial
Development
Authority
,
Excela
Health
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
7/01/22
......
300,000
303,178
Excela
Health
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
7/01/23
......
375,000
388,909
Westmoreland
County
Municipal
Authority
,
Revenue
,
2013
,
Pre-Refunded
,
5
%
,
8/15/37
7,895,000
8,345,148
59,729,453
Rhode
Island
0.2%
City
of
Providence
,
GO,
2021
A,
Refunding,
5%,
1/15/23
...................................
475,000
490,025
GO,
2021
A,
Refunding,
5%,
1/15/24
...................................
500,000
530,728
GO,
2021
A,
Refunding,
5%,
1/15/25
...................................
500,000
544,404
GO,
2021
A,
Refunding,
5%,
1/15/26
...................................
500,000
556,540
2,121,697
South
Carolina
1.0%
g
County
of
Richland
,
Village
at
Sandhill
Improvement
District
,
Special
Assessment
,
144A,
2021
,
Refunding
,
3
%
,
11/01/26
...................................
805,000
785,085
South
Carolina
Public
Service
Authority
,
Revenue,
2021
B,
5%,
12/01/22
.......................................
1,500,000
1,546,778
Revenue,
2021
B,
5%,
12/01/24
.......................................
1,750,000
1,918,827
Revenue,
D,
2.388%,
12/01/23
........................................
6,745,000
6,827,187
g
South
Carolina
State
Housing
Finance
&
Development
Authority
,
Garden
Oaks
LP
,
Revenue
,
144A,
2021
B
,
4
%
,
12/01/24
..................................
1,500,000
1,475,797
e
Spartanburg
Housing
Authority
,
CV
Housing
Partners
LP
,
Revenue
,
2022
,
Mandatory
Put
,
1.05
%
,
8/01/23
................................................
2,000,000
1,992,868
14,546,542
South
Dakota
0.2%
South
Dakota
Health
&
Educational
Facilities
Authority
,
Sanford
Obligated
Group,
Revenue,
2021,
Refunding,
0.594%,
11/01/22
........
390,000
388,364
Sanford
Obligated
Group,
Revenue,
2021,
Refunding,
0.744%,
11/01/23
........
710,000
699,114
Sanford
Obligated
Group,
Revenue,
2021,
Refunding,
1.225%,
11/01/24
........
450,000
440,586
Sanford
Obligated
Group,
Revenue,
2021,
Refunding,
1.568%,
11/01/25
........
1,695,000
1,658,143
3,186,207
Tennessee
1.8%
City
of
Memphis
,
GO,
2018,
5%,
6/01/24
.............................................
6,915,000
7,496,253
GO,
2018,
5%,
6/01/25
.............................................
7,260,000
8,101,764
GO,
2018,
5%,
6/01/26
.............................................
7,625,000
8,751,609
Tennessee
Energy
Acquisition
Corp.
,
Revenue,
2021
A,
5%,
11/01/22
.......................................
175,000
179,346
Revenue,
2021
A,
5%,
11/01/23
.......................................
250,000
263,992
Revenue,
2021
A,
5%,
11/01/24
.......................................
250,000
270,925
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
81
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Tennessee
(continued)
Tennessee
Energy
Acquisition
Corp.,
(continued)
Revenue,
2021
A,
5%,
11/01/25
.......................................
$
350,000
$
388,519
25,452,408
Texas
4.7%
Central
Texas
Turnpike
System
,
Revenue,
First
Tier
,
2002
A
,
BHAC,
AMBAC
Insured
,
Zero
Cpn
.,
8/15/27
.................................................
3,280,000
2,985,373
City
of
Dallas
,
Waterworks
&
Sewer
System
,
Revenue
,
2015
A
,
Refunding
,
5
%
,
10/01/26
........................................................
5,000,000
5,629,905
City
of
Houston
,
Combined
Utility
System
,
Revenue,
First
Lien
,
2018
D
,
Refunding
,
5
%
,
11/15/26
........................................................
1,000,000
1,159,331
City
of
Lubbock
,
GO
,
2018
,
Refunding
,
5
%
,
2/15/25
.........................
5,150,000
5,692,637
Clifton
Higher
Education
Finance
Corp.
,
IDEA
Public
Schools
,
Revenue
,
2017
,
Refunding
,
PSF
Guaranty
,
4
%
,
8/15/22
.................................
3,200,000
3,244,830
Grand
Parkway
Transportation
Corp.
,
Revenue
,
2013
B
,
Pre-Refunded
,
5.25
%
,
10/01/51
........................................................
27,930,000
29,748,578
Kaufman
County
Fresh
Water
Supply
District
No.
1-D
,
GO,
2021,
2%,
9/01/24
.............................................
140,000
138,377
GO,
2021,
2%,
9/01/25
.............................................
145,000
141,830
GO,
2021,
2%,
9/01/26
.............................................
150,000
144,508
GO,
2021,
2%,
9/01/27
.............................................
155,000
147,037
State
of
Texas
,
GO,
2018
B-3,
Refunding,
5%,
8/01/24
..................................
4,750,000
5,177,712
GO,
2018
B-3,
Refunding,
5%,
8/01/25
..................................
2,000,000
2,243,448
GO,
2018
B-3,
Refunding,
5%,
8/01/26
..................................
2,000,000
2,304,038
Texas
Water
Development
Board
,
State
Revolving
Fund
,
Revenue
,
2018
,
5
%
,
8/01/27
4,200,000
4,966,324
g
Town
of
Little
Elm
,
Valencia
Public
Improvement
District
,
Special
Assessment
,
144A,
2021
,
2.375
%
,
9/01/26
..............................................
245,000
235,144
Westside
211
Special
Improvement
District
,
GO,
Sub.
Lien,
2021,
2%,
8/15/23
.....................................
255,000
256,506
GO,
Sub.
Lien,
2021,
2%,
8/15/25
.....................................
265,000
264,097
GO,
Sub.
Lien,
2021,
2%,
8/15/27
.....................................
280,000
275,102
64,754,777
Utah
0.5%
City
of
Salt
Lake
City
,
Airport,
Revenue,
2021
A,
5%,
7/01/24
..................................
1,000,000
1,076,134
Airport,
Revenue,
2021
A,
5%,
7/01/26
..................................
3,900,000
4,395,293
South
Valley
Water
Reclamation
Facility
,
Revenue
,
2018
,
AGMC
Insured
,
5
%
,
2/15/23
1,225,000
1,271,686
Utah
Infrastructure
Agency
,
Revenue
,
2021
,
3
%
,
10/15/23
.....................
475,000
486,777
7,229,890
Virginia
1.0%
Virginia
Small
Business
Financing
Authority
,
h
Capital
Beltway
Express
LLC,
Revenue,
Sub.
Lien,
FRN,
2022,
Refunding,
2%,
12/31/23
.......................................................
10,000,000
10,003,121
f
Elizabeth
River
Crossings
OpCo
LLC,
Revenue,
Senior
Lien,
2022,
Refunding,
4%,
1/01/29
........................................................
180,000
194,451
f
Elizabeth
River
Crossings
OpCo
LLC,
Revenue,
Senior
Lien,
2022,
Refunding,
4%,
7/01/29
........................................................
1,750,000
1,896,588
LifeSpire
of
Virginia
Obligated
Group,
Revenue,
2021,
Refunding,
3%,
12/01/22
...
240,000
242,375
LifeSpire
of
Virginia
Obligated
Group,
Revenue,
2021,
Refunding,
3%,
12/01/23
...
300,000
306,629
LifeSpire
of
Virginia
Obligated
Group,
Revenue,
2021,
Refunding,
3%,
12/01/24
...
220,000
226,683
LifeSpire
of
Virginia
Obligated
Group,
Revenue,
2021,
Refunding,
3%,
12/01/25
...
230,000
237,754
LifeSpire
of
Virginia
Obligated
Group,
Revenue,
2021,
Refunding,
3%,
12/01/26
...
235,000
243,964
13,351,565
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
82
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Washington
3.9%
Auburn
School
District
No.
408
of
King
&
Pierce
Counties
,
GO,
2018,
5%,
12/01/27
.............................................
$
1,700,000
$
2,027,734
GO,
2018,
5%,
12/01/28
.............................................
3,300,000
3,938,196
Clark
County
School
District
No.
37
Vancouver
,
GO
,
2021
,
4
%
,
12/01/22
..........
3,575,000
3,661,275
County
of
King
,
GO
,
2021
C
,
0.61
%
,
12/01/23
..............................
10,000,000
9,856,127
Energy
Northwest
,
Bonneville
Power
Administration
,
Revenue
,
2018
A
,
Refunding
,
5
%
,
7/01/23
.........................................................
5,000,000
5,269,021
Spokane
County
School
District
No.
354
Mead
,
GO,
2018,
4%,
12/01/32
.............................................
1,150,000
1,285,703
GO,
2018,
5%,
12/01/33
.............................................
1,500,000
1,783,714
Spokane
County
School
District
No.
356
Central
Valley
,
GO
,
2018
,
4
%
,
12/01/31
....
8,295,000
9,336,538
State
of
Washington
,
GO,
R-2012D,
Refunding,
5%,
7/01/23
..................................
7,340,000
7,444,165
GO,
R-2015
D,
Refunding,
5%,
7/01/28
.................................
3,985,000
4,377,580
e
University
of
Washington
,
Revenue
,
2019
A
,
Refunding
,
Mandatory
Put
,
5
%
,
5/01/22
.
5,000,000
5,003,744
g
Washington
Health
Care
Facilities
Authority
,
Seattle
Cancer
Care
Alliance
Obligated
Group
,
Revenue
,
144A,
2021
,
5
%
,
12/01/31
..............................
280,000
345,129
54,328,926
West
Virginia
0.1%
e
West
Virginia
Economic
Development
Authority
,
Appalachian
Power
Co.
,
Revenue
,
2010
A
,
Refunding
,
Mandatory
Put
,
0.625
%
,
12/15/25
......................
1,000,000
959,120
Wisconsin
0.4%
City
of
Fond
Du
Lac
,
GO
,
2017
B
,
Refunding
,
2
%
,
4/01/22
.....................
1,000,000
1,001,205
Public
Finance
Authority
,
2017
IAVF
Rubix
LLC,
Revenue,
2020
A,
2.75%,
12/01/25
...................
638,452
633,702
Coral
Academy
of
Science
Las
Vegas,
Revenue,
2021
A,
4%,
7/01/26
..........
150,000
158,933
United
Methodist
Retirement
Homes,
Inc.
Obligated
Group
(The),
Revenue,
2021
A,
Refunding,
4%,
10/01/25
...........................................
285,000
308,701
United
Methodist
Retirement
Homes,
Inc.
Obligated
Group
(The),
Revenue,
2021
A,
Refunding,
4%,
10/01/26
...........................................
300,000
329,307
g
WV
2020
Holdings
LLC
Obligated
Group,
Revenue,
144A,
2020
B,
4.25%,
6/01/25
2,342,000
2,295,748
Wisconsin
Health
&
Educational
Facilities
Authority
,
Oakwood
Lutheran
Senior
Ministries
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
1/01/23
....................................................
250,000
253,906
Oakwood
Lutheran
Senior
Ministries
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
1/01/24
....................................................
160,000
164,873
Oakwood
Lutheran
Senior
Ministries
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
1/01/26
....................................................
345,000
362,621
Oakwood
Lutheran
Senior
Ministries
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
1/01/27
....................................................
360,000
380,382
5,889,378
Wyoming
0.1%
County
of
Laramie
,
Cheyenne
Regional
Medical
Center,
Revenue,
2021,
Refunding,
4%,
5/01/23
.....
800,000
827,570
Cheyenne
Regional
Medical
Center,
Revenue,
2021,
Refunding,
4%,
5/01/27
.....
550,000
611,988
1,439,558
U.S.
Territories
0.1%
Puerto
Rico
0.1%
Puerto
Rico
Industrial
Tourist
Educational
Medical
&
Environmental
Control
Facilities
Financing
Authority
,
Hospital
Auxilio
Mutuo
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
7/01/22
..
150,000
152,017
Hospital
Auxilio
Mutuo
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
7/01/23
..
100,000
104,726
Hospital
Auxilio
Mutuo
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
7/01/25
..
195,000
214,851
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
83
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
U.S.
Territories
(continued)
Puerto
Rico
(continued)
Puerto
Rico
Industrial
Tourist
Educational
Medical
&
Environmental
Control
Facilities
Financing
Authority,
(continued)
Hospital
Auxilio
Mutuo
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
7/01/27
..
$
450,000
$
518,331
989,925
Total
U.S.
Territories
....................................................................
989,925
Total
Municipal
Bonds
(Cost
$1,142,969,595)
...................................
1,143,725,029
Total
Long
Term
Investments
(Cost
$1,182,248,016)
.............................
1,182,928,500
a
a
a
a
a
Short
Term
Investments
15.5%
Municipal
Bonds
15.5%
Arizona
0.2%
i
Arizona
Health
Facilities
Authority
,
Banner
Health
Obligated
Group
,
Revenue
,
2015
C
,
LOC
Bank
of
America
NA
,
Daily
VRDN
and
Put
,
0.06
%
,
1/01/46
...............
3,500,000
3,500,000
California
1.2%
i
University
of
California
,
Revenue
,
2013
AL-1
,
Daily
VRDN
and
Put
,
0.03
%
,
5/15/48
..
16,500,000
16,500,000
Colorado
0.3%
i
City
&
County
of
Denver
,
COP
,
2008
A-1
,
Refunding
,
SPA
JPMorgan
Chase
Bank
NA
,
Daily
VRDN
and
Put
,
0.06
%
,
12/01/29
...............................
3,900,000
3,900,000
Florida
2.3%
i
County
of
Martin
,
Florida
Power
&
Light
Co.
,
Revenue
,
2000
,
Refunding
,
Daily
VRDN
and
Put
,
0.1
%
,
7/15/22
..............................................
32,300,000
32,300,000
Georgia
0.7%
i
Development
Authority
of
Monroe
County
(The)
,
Florida
Power
&
Light
Co.
,
Revenue
,
2002
,
Refunding
,
Daily
VRDN
and
Put
,
0.11
%
,
9/01/37
......................
10,000,000
10,000,000
Maryland
2.4%
i
County
of
Montgomery
,
GO
,
2017
E
,
SPA
US
Bank
NA
,
Daily
VRDN
and
Put
,
0.06
%
,
11/01/37
........................................................
16,150,000
16,150,000
i
Maryland
Health
&
Higher
Educational
Facilities
Authority
,
University
of
Maryland
Medical
System
Obligated
Group
,
Revenue
,
2008
D
,
LOC
TD
Bank
NA
,
Daily
VRDN
and
Put
,
0.09
%
,
7/01/41
.............................................
16,240,000
16,240,000
32,390,000
Michigan
0.3%
i
University
of
Michigan
,
Revenue
,
2012
D-1
,
Daily
VRDN
and
Put
,
0.05
%
,
12/01/24
..
4,630,000
4,630,000
Minnesota
1.3%
i
City
of
Minneapolis
St.
Paul
Housing
&
Redevelopment
Authority
,
Allina
Health
Obligated
Group,
Revenue,
2009
B-1,
LOC
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
0.06%,
11/15/35
.................................
6,000,000
6,000,000
Allina
Health
Obligated
Group,
Revenue,
B-2,
LOC
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
0.06%,
11/15/35
.....................................
12,220,000
12,220,000
18,220,000
Missouri
0.3%
i
Health
&
Educational
Facilities
Authority
of
the
State
of
Missouri
,
Washington
University
(The)
,
Revenue
,
2000
B
,
SPA
JPMorgan
Chase
Bank
NA
,
Daily
VRDN
and
Put
,
0.06
%
,
3/01/40
...................................................
4,900,000
4,900,000
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
84
Short
Term
Investments
(continued)
a
a
Principal
Amount
a
Value
Municipal
Bonds
(continued)
New
York
1.7%
i
New
York
City
,
Water
&
Sewer
System
,
Revenue
,
BB
1B
,
SPA
State
Street
Bank
&
Trust
Co.
,
Daily
VRDN
and
Put
,
0.08
%
,
6/15/49
...........................
$
7,200,000
$
7,200,000
i
New
York
City
Transitional
Finance
Authority
,
Future
Tax
Secured
,
Revenue
,
2019
B-4
,
SPA
JPMorgan
Chase
Bank
NA
,
Daily
VRDN
and
Put
,
0.08
%
,
8/01/42
..........
11,000,000
11,000,000
i
Triborough
Bridge
&
Tunnel
Authority
,
Revenue
,
2001
C
,
Refunding
,
LOC
State
Street
Bank
&
Trust
Co.
,
Daily
VRDN
and
Put
,
0.06
%
,
1/01/32
.....................
5,300,000
5,300,000
23,500,000
North
Carolina
0.3%
i
North
Carolina
Medical
Care
Commission
,
Moses
H
Cone
Memorial
Hospital
Obligated
Group
,
Revenue
,
2001
B
,
SPA
Bank
of
Montreal
,
Daily
VRDN
and
Put
,
0.09
%
,
10/01/35
........................................................
3,600,000
3,600,000
Oregon
0.6%
i
Oregon
State
Facilities
Authority
,
PeaceHealth
Obligated
Group
,
Revenue
,
2018
B
,
Refunding
,
LOC
TD
Bank
NA
,
Daily
VRDN
and
Put
,
0.09
%
,
8/01/34
............
5,000,000
5,000,000
i
State
of
Oregon
,
GO
,
2020
J
,
Refunding
,
SPA
US
Bank
NA
,
Daily
VRDN
and
Put
,
0.1
%
,
6/01/39
....................................................
3,100,000
3,100,000
8,100,000
Tennessee
2.7%
i
Shelby
County
Health
Educational
&
Housing
Facilities
Board
,
Methodist
Le
Bonheur
Healthcare
Obligated
Group
,
Revenue
,
2008
A
,
AGMC
Insured
,
SPA
US
Bank
NA
,
Daily
VRDN
and
Put
,
0.1
%
,
6/01/42
....................................
37,260,000
37,260,000
Virginia
1.2%
i
Albemarle
County
Economic
Development
Authority
,
Sentara
Healthcare
Obligated
Group
,
Revenue
,
2018
B
,
Refunding
,
SPA
TD
Bank
NA
,
Daily
VRDN
and
Put
,
0.1
%
,
10/01/48
........................................................
16,425,000
16,425,000
Total
Municipal
Bonds
(Cost
$215,225,000)
.....................................
215,225,000
Total
Short
Term
Investments
(Cost
$215,225,000
)
...............................
215,225,000
a
Total
Investments
(Cost
$1,397,473,016)
100.7%
................................
$1,398,153,500
Other
Assets,
less
Liabilities
(0.7)%
...........................................
(9,641,001)
Net
Assets
100.0%
...........................................................
$1,388,512,499
See
Abbreviations
on
page
196
.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
b
See
Note
1(c)
regarding
senior
floating
rate
interests.
c
Fair
valued
using
significant
unobservable
inputs.
See
Note
13
regarding
fair
value
measurements.
d
The
coupon
rate
shown
represents
the
rate
at
period
end.
e
The
maturity
date
shown
represents
the
mandatory
put
date.
f
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).
g
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
February
28,
2022,
the
aggregate
value
of
these
securities
was
$26,896,374,
representing
1.9%
of
net
assets.
h
Adjustable
rate
security
with
an
interest
rate
that
is
not
based
on
a
published
reference
index
and
spread.
The
rate
is
based
on
the
structure
of
the
agreement
and
current
market
conditions.
The
coupon
rate
shown
represents
the
rate
at
period
end.
i
Variable
rate
demand
notes
(VRDNs)
are
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.
Unless
otherwise
noted,
the
coupon
rate
is
determined
based
on
factors
including
supply
and
demand,
underlying
credit,
tax
treatment,
and
current
short
term
rates.
The
coupon
rate
shown
represents
the
rate
at
period
end.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
High
Yield
Tax-Free
Income
Fund
franklintempleton.com
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accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
85
a
Year
Ended
February
28,
Year
Ended
February
28,
2019
b
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
................................
$10.29
$10.46
$9.93
$9.97
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.36
0.40
0.39
0.20
Net
realized
and
unrealized
gains
(losses)
........................
(0.24)
(0.19)
0.56
(0.04)
Total
from
investment
operations
.................................
0.12
0.21
0.95
0.16
Less
distributions
from:
Net
investment
income
.......................................
(0.36)
(0.38)
(0.42)
(0.20)
Net
asset
value,
end
of
year
....................................
$10.05
$10.29
$10.46
$9.93
Total
return
e
................................................
1.07%
2.15%
9.73%
1.68%
Ratios
to
average
net
assets
f
Expenses
g
.................................................
0.80%
h
0.79%
0.79%
0.81%
Net
investment
income
........................................
3.49%
3.97%
3.82%
4.23%
Supplemental
data
Net
assets,
end
of
year
(000’s)
..................................
$1,559,216
$1,177,730
$900,342
$343,683
Portfolio
turnover
rate
.........................................
18.70%
38.24%
11.98%
6.16%
a
For
the
year
ended
February
29.
b
For
the
period
September
10,
2018
(effective
date)
to
February
28,
2019.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
86
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.28
$10.45
$9.92
$9.94
$10.25
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.38
0.42
0.40
0.43
0.43
Net
realized
and
unrealized
gains
(losses)
...........
(0.24)
(0.20)
0.56
(0.01)
(0.30)
Total
from
investment
operations
....................
0.14
0.22
0.96
0.42
0.13
Less
distributions
from:
Net
investment
income
..........................
(0.38)
(0.39)
(0.43)
(0.44)
(0.44)
Net
asset
value,
end
of
year
.......................
$10.04
$10.28
$10.45
$9.92
$9.94
Total
return
d
...................................
1.22%
2.30%
9.90%
4.33%
1.30%
Ratios
to
average
net
assets
Expenses
.....................................
0.65%
e,f
0.65%
e
0.64%
e
0.66%
e
0.66%
Net
investment
income
...........................
3.65%
4.14%
3.97%
4.38%
4.22%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$3,518,033
$3,756,501
$4,196,856
$4,174,968
$4,608,917
Portfolio
turnover
rate
............................
18.70%
38.24%
11.98%
6.16%
6.98%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
87
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.49
$10.66
$10.12
$10.13
$10.44
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.32
0.36
0.36
0.39
0.38
Net
realized
and
unrealized
gains
(losses)
...........
(0.25)
(0.19)
0.56
(0.01)
(0.30)
Total
from
investment
operations
....................
0.07
0.17
0.92
0.38
0.08
Less
distributions
from:
Net
investment
income
..........................
(0.32)
(0.34)
(0.38)
(0.39)
(0.39)
Net
asset
value,
end
of
year
.......................
$10.24
$10.49
$10.66
$10.12
$10.13
Total
return
d
...................................
0.54%
1.71%
9.27%
3.77%
0.71%
Ratios
to
average
net
assets
Expenses
.....................................
1.19%
e,f
1.19%
e
1.19%
e
1.21%
e
1.21%
Net
investment
income
...........................
3.03%
3.53%
3.42%
3.83%
3.67%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$262,313
$359,050
$488,258
$558,728
$870,227
Portfolio
turnover
rate
............................
18.70%
38.24%
11.98%
6.16%
6.98%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
88
a
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2022
2021
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.33
$10.50
$9.97
$9.98
$10.31
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.40
0.43
0.42
0.45
0.27
Net
realized
and
unrealized
gains
(losses)
...........
(0.25)
(0.19)
0.56
(0.01)
(0.34)
Total
from
investment
operations
....................
0.15
0.24
0.98
0.44
(0.07)
Less
distributions
from:
Net
investment
income
..........................
(0.39)
(0.41)
(0.45)
(0.45)
(0.26)
Net
asset
value,
end
of
year
.......................
$10.09
$10.33
$10.50
$9.97
$9.98
Total
return
e
...................................
1.36%
2.43%
10.01%
4.55%
(0.68)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
......
0.51%
0.51%
0.51%
0.52%
0.52%
Expenses
net
of
waiver
and
payments
by
affiliates
.......
0.51%
g,
h
0.50%
g
0.50%
g
0.52%
h
0.51%
Net
investment
income
...........................
3.77%
4.25%
4.11%
4.52%
4.37%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$228,725
$157,328
$127,806
$90,752
$152,255
Portfolio
turnover
rate
............................
18.70%
38.24%
11.98%
6.16%
6.98%
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
89
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.33
$10.50
$9.97
$9.98
$10.30
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.39
0.43
0.42
0.45
0.44
Net
realized
and
unrealized
gains
(losses)
...........
(0.25)
(0.20)
0.55
(0.01)
(0.31)
Total
from
investment
operations
....................
0.14
0.23
0.97
0.44
0.13
Less
distributions
from:
Net
investment
income
..........................
(0.39)
(0.40)
(0.44)
(0.45)
(0.45)
Net
asset
value,
end
of
year
.......................
$10.08
$10.33
$10.50
$9.97
$9.98
Total
return
....................................
1.22%
2.39%
9.97%
4.52%
1.29%
Ratios
to
average
net
assets
Expenses
.....................................
0.55%
d,e
0.54%
d
0.54%
d
0.56%
d
0.56%
Net
investment
income
...........................
3.73%
4.22%
4.07%
4.48%
4.32%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$1,284,270
$1,229,100
$1,166,057
$994,336
$1,070,254
Portfolio
turnover
rate
............................
18.70%
38.24%
11.98%
6.16%
6.98%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments,
February
28,
2022
Franklin
High
Yield
Tax-Free
Income
Fund
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
90
a
a
Shares
a
Value
a
Management
Investment
Companies
0.7%
Capital
Markets
0.7%
a
Franklin
Dynamic
Municipal
Bond
ETF
...................................
1,805,000
$
46,532,900
Total
Management
Investment
Companies
(Cost
$47,171,238)
....................
46,532,900
Principal
Amount
a
a
a
a
Corporate
Bonds
1.5%
Commercial
Services
&
Supplies
0.1%
b
CalPlant
I
LLC
,
21A,
Senior
Secured
Note,
144A,
9.5%,
10/12/22
..........................
$
1,920,000
1,919,066
21B,
Senior
Secured
Note,
144A,
9.5%,
10/12/22
..........................
7,205,000
7,198,922
9,117,988
Diversified
Consumer
Services
1.4%
Grand
Canyon
University
,
5.125
%
,
10/01/28
...............................
95,000,000
95,237,500
Total
Corporate
Bonds
(Cost
$104,125,000)
.....................................
104,355,488
Municipal
Bonds
97.4%
Alabama
2.6%
County
of
Jefferson
,
Sewer,
Revenue,
Sub.
Lien,
2013
E,
Zero
Cpn.,
10/01/28
....................
7,350,000
5,210,322
Sewer,
Revenue,
Sub.
Lien,
2013
E,
Zero
Cpn.,
10/01/29
....................
13,465,000
8,807,457
Sewer,
Revenue,
Sub.
Lien,
2013
E,
Zero
Cpn.,
10/01/30
....................
19,050,000
11,475,225
Sewer,
Revenue,
Sub.
Lien,
2013
E,
Zero
Cpn.,
10/01/31
....................
24,845,000
13,757,342
Sewer,
Revenue,
Sub.
Lien,
2013
E,
Zero
Cpn.,
10/01/32
....................
30,825,000
15,732,762
Sewer,
Revenue,
Sub.
Lien,
2013
E,
Zero
Cpn.,
10/01/33
....................
35,700,000
16,821,215
Sewer,
Revenue,
Sub.
Lien,
2013
E,
Zero
Cpn.,
10/01/34
....................
28,020,000
12,156,513
Sewer,
Revenue,
Sub.
Lien,
2013
E,
Zero
Cpn.,
10/01/35
....................
15,000,000
5,997,434
Sewer,
Revenue,
Sub.
Lien,
2013
E,
Zero
Cpn.,
10/01/36
....................
12,425,000
4,564,879
Sewer,
Revenue,
Sub.
Lien,
2013
F,
Zero
Cpn.,
10/01/39
....................
75,000,000
76,997,295
MidCity
Improvement
District
,
Assessment
Area,
Special
Assessment,
2022,
3.875%,
11/01/27
..............
300,000
296,531
Assessment
Area,
Special
Assessment,
2022,
4.25%,
11/01/32
...............
600,000
589,368
Assessment
Area,
Special
Assessment,
2022,
4.5%,
11/01/42
................
1,090,000
1,052,921
Assessment
Area,
Special
Assessment,
2022,
4.75%,
11/01/49
...............
1,250,000
1,210,643
174,669,907
Arizona
1.8%
Arizona
Industrial
Development
Authority
,
b
Doral
Academy
of
Northern
Nevada
Obligated
Group,
Revenue,
144A,
2021
A,
Refunding,
4%,
7/15/41
............................................
265,000
272,144
Great
Lakes
Senior
Living
Communities
LLC,
Revenue,
Second
Tier,
2019
B,
5.125%,
1/01/54
.................................................
3,005,000
2,395,553
Industrial
Development
Authority
of
the
City
of
Phoenix
(The)
,
Downtown
Phoenix
Student
Housing
LLC
,
Revenue
,
2018
A
,
Refunding
,
5
%
,
7/01/42
..............
1,000,000
1,131,736
b
Industrial
Development
Authority
of
the
County
of
Pima
(The)
,
American
Leadership
Academy,
Inc.,
Revenue,
144A,
2017,
Refunding,
5%,
6/15/47
5,450,000
5,517,145
American
Leadership
Academy,
Inc.,
Revenue,
144A,
2019,
Refunding,
5%,
6/15/49
1,235,000
1,295,101
c
American
Leadership
Academy,
Inc.,
Revenue,
144A,
2022,
Refunding,
4%,
6/15/51
4,000,000
4,007,550
c
American
Leadership
Academy,
Inc.,
Revenue,
144A,
2022,
Refunding,
4%,
6/15/57
4,500,000
4,408,044
La
Paz
County
Industrial
Development
Authority
,
Harmony
Public
Schools,
Revenue,
2018
A,
5%,
2/15/38
....................
1,000,000
1,125,473
Harmony
Public
Schools,
Revenue,
2018
A,
5%,
2/15/48
....................
1,000,000
1,112,200
b
Maricopa
County
Industrial
Development
Authority
,
Arizona
Autism
Charter
Schools
Obligated
Group,
Revenue,
144A,
2021
A,
4%,
7/01/41
........................................................
370,000
385,743
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
91
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Arizona
(continued)
b
Maricopa
County
Industrial
Development
Authority,
(continued)
Arizona
Autism
Charter
Schools
Obligated
Group,
Revenue,
144A,
2021
A,
4%,
7/01/51
........................................................
$
545,000
$
560,686
Arizona
Autism
Charter
Schools
Obligated
Group,
Revenue,
144A,
2021
A,
4%,
7/01/61
........................................................
2,625,000
2,669,985
Benjamin
Franklin
Charter
School
Obligated
Group,
Revenue,
144A,
2018
A,
6%,
7/01/38
........................................................
5,000,000
5,896,657
Benjamin
Franklin
Charter
School
Obligated
Group,
Revenue,
144A,
2018
A,
6%,
7/01/52
........................................................
10,000,000
11,617,421
Commercial
Metals
Co.,
Revenue,
144A,
2022,
4%,
10/15/47
.................
4,000,000
4,149,688
Salt
Verde
Financial
Corp.
,
Revenue,
2007-1,
5.25%,
12/01/25
....................................
6,000,000
6,709,037
Revenue,
2007-1,
5.5%,
12/01/29
.....................................
11,105,000
13,520,640
b
Sierra
Vista
Industrial
Development
Authority
,
Georgetown
Community
Development
Authority,
Revenue,
144A,
2021
A,
Zero
Cpn.,
10/01/56
.......................................................
18,880,000
14,192,147
Georgetown
Community
Development
Authority,
Revenue,
144A,
2021
B,
6.25%,
10/01/36
.......................................................
3,945,000
3,772,603
Tempe
Industrial
Development
Authority
,
b
Mirabella
at
ASU,
Inc.,
Revenue,
144A,
2017
A,
6%,
10/01/37
................
1,900,000
2,027,605
b
Mirabella
at
ASU,
Inc.,
Revenue,
144A,
2017
A,
6.125%,
10/01/47
.............
4,850,000
5,139,128
b
Mirabella
at
ASU,
Inc.,
Revenue,
144A,
2017
A,
6.125%,
10/01/52
.............
2,800,000
2,959,980
Tempe
Life
Care
Village
Obligated
Group,
Revenue,
2019,
5%,
12/01/50
........
4,300,000
4,675,151
Tempe
Life
Care
Village
Obligated
Group,
Revenue,
2019,
5%,
12/01/54
........
8,000,000
8,683,229
Tempe
Life
Care
Village
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
12/01/46
.......................................................
2,500,000
2,585,647
Tempe
Life
Care
Village
Obligated
Group,
Revenue,
2021
B,
4%,
12/01/56
.......
2,130,000
2,171,297
Yuma
County
Industrial
Development
Authority
,
Far
West
Water
&
Sewer,
Inc.
,
Revenue
,
2007
A
,
Refunding
,
6.375
%
,
12/01/37
...........................
13,715,000
13,025,226
126,006,816
California
18.6%
Alvord
Unified
School
District
,
GO
,
2011
B
,
AGMC
Insured
,
Zero
Cpn.,
8/01/41
.....
30,750,000
16,141,474
b
California
Community
Housing
Agency
,
Revenue,
144A,
2021
A-2,
4%,
2/01/50
.................................
5,000,000
4,423,288
Annadel
Apartments,
Revenue,
144A,
2019
A,
5%,
4/01/49
..................
10,800,000
11,143,755
Aster
Apartments,
Revenue,
Junior
Lien,
144A,
2021
A-2,
4%,
2/01/43
..........
8,895,000
8,552,820
Brio
Apartments
&
Next
on
Lex
Apartments,
Revenue,
144A,
2021
A-2,
4%,
8/01/47
12,500,000
11,648,608
Brio
Apartments
&
Next
on
Lex
Apartments,
Revenue,
Senior
Lien,
144A,
2021
A-1,
4%,
2/01/56
....................................................
12,000,000
12,046,457
Exchange
at
Bayfront
Apartments,
Revenue,
Junior
Lien,
144A,
2021
A,
4%,
8/01/51
10,000,000
8,875,542
Fountains
at
Emerald
Park,
Revenue,
Junior
Lien,
144A,
2021
A-2,
4%,
8/01/46
...
2,750,000
2,494,266
K
Street
Flats,
Revenue,
144A,
2021
A-2,
4%,
8/01/50
......................
16,500,000
14,510,433
Mira
Vista
Hills
Apartments,
Revenue,
144A,
2021
A,
4%,
2/01/56
.............
30,500,000
29,240,762
California
County
Tobacco
Securitization
Agency
,
Alameda
County
Tobacco
Asset
Securitization
Corp.
,
Revenue
,
2002
,
5.875
%
,
6/01/35
......................
2,815,000
2,857,630
b
California
Municipal
Finance
Authority
,
California
Baptist
University,
Revenue,
144A,
2015
A,
5.5%,
11/01/45
...........
17,400,000
19,228,956
California
Baptist
University,
Revenue,
144A,
2016
A,
5%,
11/01/46
............
6,800,000
7,531,135
Capital
Christian
Center,
Revenue,
144A,
2021
A,
5%,
10/01/51
...............
8,425,000
8,709,832
b
California
Pollution
Control
Financing
Authority
,
d
CalPlant
I
LLC,
Revenue,
144A,
2017,
7.5%,
7/01/32
.......................
24,500,000
14,700,000
d
CalPlant
I
LLC,
Revenue,
144A,
2017,
8%,
7/01/39
........................
10,000,000
6,000,000
CalPlant
I
LLC,
Revenue,
144A,
2020,
7.5%,
7/01/32
.......................
10,000,000
8,500,000
Rialto
Bioenergy
Facility
LLC,
Revenue,
144A,
2018,
6.75%,
12/01/28
..........
1,700,000
1,403,319
Rialto
Bioenergy
Facility
LLC,
Revenue,
144A,
2018,
7.5%,
12/01/40
...........
5,300,000
3,861,669
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
92
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
b
California
Public
Finance
Authority
,
Crossroads
Christian
Schools
Obligated
Group,
Revenue,
144A,
2020,
5%,
1/01/56
$
4,015,000
$
4,069,156
Keck
Graduate
Institute
of
Applied
Life
Sciences,
Revenue,
144A,
2017
A,
Refunding,
5%,
7/01/47
............................................
2,900,000
2,442,407
Kendal
at
Sonoma
Obligated
Group,
Revenue,
144A,
2021
A,
Refunding,
5%,
11/15/46
.......................................................
1,250,000
1,374,174
California
Statewide
Communities
Development
Authority
,
b
Lancer
Educational
Housing
LLC,
Revenue,
144A,
2016
A,
Refunding,
5%,
6/01/36
7,210,000
7,950,131
Loma
Linda
University
Medical
Center
Obligated
Group,
Revenue,
2014
A,
5.25%,
12/01/44
.......................................................
20,555,000
22,420,492
b
Loma
Linda
University
Medical
Center
Obligated
Group,
Revenue,
144A,
2016
A,
5.25%,
12/01/56
.................................................
3,000,000
3,372,658
b
NCCD-Hooper
Street
LLC,
Revenue,
144A,
2019,
5.25%,
7/01/39
.............
1,275,000
1,336,500
b
NCCD-Hooper
Street
LLC,
Revenue,
144A,
2019,
5.25%,
7/01/49
.............
3,725,000
3,852,892
Centinela
Valley
Union
High
School
District
,
GO
,
2012
B
,
Refunding
,
AGMC
Insured
,
Zero
Cpn.,
8/01/37
.................................................
8,400,000
3,500,144
City
of
San
Francisco
,
5.25
%
,
9/01/49
....................................
10,000,000
9,550,815
City
of
San
Jose
,
Hotel
Tax
,
Special
Tax
,
2011
,
6.5
%
,
5/01/42
..................
10,000,000
10,039,321
b
CMFA
Special
Finance
Agency
,
Revenue,
Junior
Lien,
144A,
2022
A-2,
4.5%,
8/01/51
.......................
38,000,000
31,296,477
Solana
at
Grand,
Revenue,
Junior
Lien,
144A,
2021
A-2,
4%,
8/01/45
...........
11,000,000
9,884,535
b
CMFA
Special
Finance
Agency
VII
,
Breakwater
Apartments
(The),
Revenue,
144A,
2021
A-1,
3%,
8/01/56
..........
1,750,000
1,497,418
Breakwater
Apartments
(The),
Revenue,
144A,
2021
A-2,
4%,
8/01/47
..........
10,400,000
9,230,009
b
CMFA
Special
Finance
Agency
VIII
,
Elan
Huntington
Beach
,
Revenue,
Junior
Lien
,
144A,
2021
A-2
,
4
%
,
8/01/47
.........................................
4,500,000
4,053,981
b
CMFA
Special
Finance
Agency
XII
,
Allure
Apartments
,
Revenue
,
144A,
2022
A-2
,
4.375
%
,
8/01/49
...................................................
17,000,000
15,075,765
Compton
Community
College
District
,
GO,
2013
D,
Refunding,
BAM
Insured,
Zero
Cpn.,
8/01/30
...................
3,425,000
2,184,664
GO,
2013
D,
Refunding,
BAM
Insured,
Zero
Cpn.,
8/01/32
...................
4,000,000
2,218,653
GO,
2013
D,
Refunding,
BAM
Insured,
Zero
Cpn.,
8/01/34
...................
4,560,000
2,186,447
GO,
2013
D,
Refunding,
BAM
Insured,
Zero
Cpn.,
8/01/36
...................
5,250,000
2,180,966
GO,
2013
D,
Refunding,
BAM
Insured,
Zero
Cpn.,
8/01/37
...................
3,065,000
1,185,050
GO,
2013
D,
Refunding,
BAM
Insured,
Zero
Cpn.,
8/01/38
...................
6,000,000
2,160,571
b
CSCDA
Community
Improvement
Authority
,
Cameo/Garrison
Apartments,
Revenue,
144A,
2021
B,
4%,
3/01/57
............
3,000,000
2,569,540
Cameo/Garrison
Apartments,
Revenue,
Senior
Lien,
144A,
2021
A-2,
3%,
3/01/57
.
7,500,000
6,204,639
Crescent
(The),
Revenue,
144A,
2022
B,
5.5%,
7/01/59
.....................
15,935,000
14,255,359
Dublin,
Revenue,
144A,
2021
B,
4%,
2/01/57
.............................
2,000,000
1,736,297
Escondido
Portfolio,
Revenue,
Senior
Lien,
144A,
2021
A-1,
3%,
6/01/48
........
16,000,000
13,632,710
Jefferson
Platinum
Triangle
Apartments,
Revenue,
144A,
2021
A-2,
3.125%,
8/01/56
10,000,000
8,372,060
Park
Crossing
Apartments,
Revenue,
144A,
2021
B,
4%,
12/01/48
.............
14,235,000
12,354,921
Parrallel-Anaheim,
Revenue,
144A,
2021
A,
4%,
8/01/56
....................
8,000,000
7,655,198
Pasadena
Portfolio,
Revenue,
144A,
2021
B,
4%,
12/01/56
..................
2,500,000
2,212,368
Union
South
Bay,
Revenue,
144A,
2021
A-2,
4%,
7/01/56
....................
12,500,000
12,557,540
Wood
Creek
Apartments,
Revenue,
Sub.
Lien,
144A,
2021
B,
4%,
12/01/59
......
17,000,000
13,048,085
Foothill-Eastern
Transportation
Corridor
Agency
,
Revenue,
2013
A,
Refunding,
AGMC
Insured,
Zero
Cpn.,
1/15/30
..............
10,000,000
11,235,180
Revenue,
2013
A,
Refunding,
AGMC
Insured,
Zero
Cpn.,
1/15/31
..............
7,295,000
8,351,438
Revenue,
Junior
Lien,
C,
Pre-Refunded,
6.25%,
1/15/33
.....................
17,580,000
19,098,166
M-S-R
Energy
Authority
,
Revenue,
2009
B,
6.125%,
11/01/29
...................................
28,865,000
34,405,210
Revenue,
2009
B,
7%,
11/01/34
.......................................
20,000,000
28,550,452
Revenue,
2009
C,
6.5%,
11/01/39
.....................................
20,000,000
29,545,874
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
93
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Palmdale
Elementary
School
District
,
Community
Facilities
District
No.
90-1,
Special
Tax,
2012
A,
AGMC
Insured,
Zero
Cpn.,
8/01/28
...................................................
$
1,500,000
$
1,302,156
Community
Facilities
District
No.
90-1,
Special
Tax,
2012
A,
AGMC
Insured,
Zero
Cpn.,
8/01/30
...................................................
1,250,000
1,019,034
Community
Facilities
District
No.
90-1,
Special
Tax,
2012
A,
AGMC
Insured,
Zero
Cpn.,
8/01/31
...................................................
1,250,000
985,897
Community
Facilities
District
No.
90-1,
Special
Tax,
2012
A,
AGMC
Insured,
Zero
Cpn.,
8/01/34
...................................................
2,500,000
2,619,925
River
Islands
Public
Financing
Authority
,
Community
Facilities
District
No.
2021-1,
Special
Tax,
2021,
4%,
9/01/28
........
480,000
508,904
Community
Facilities
District
No.
2021-1,
Special
Tax,
2021,
4%,
9/01/32
........
520,000
545,686
Riverside
County
Transportation
Commission
,
Revenue,
Senior
Lien,
2013
B,
Zero
Cpn.,
6/01/32
.........................
4,000,000
2,993,384
Revenue,
Senior
Lien,
2013
B,
Zero
Cpn.,
6/01/33
.........................
5,500,000
3,986,023
Revenue,
Senior
Lien,
2013
B,
Zero
Cpn.,
6/01/41
.........................
5,000,000
2,738,656
Revenue,
Senior
Lien,
2013
B,
Zero
Cpn.,
6/01/42
.........................
7,000,000
3,695,681
San
Diego
Unified
School
District
,
GO,
2012
E,
Zero
Cpn.,
7/01/42
.......................................
44,565,000
40,701,567
GO,
2012
E,
Zero
Cpn.,
7/01/47
.......................................
33,305,000
31,539,588
San
Joaquin
Hills
Transportation
Corridor
Agency
,
Revenue,
1997
A,
Refunding,
6%,
1/15/45
...............................
35,834,000
49,269,872
Revenue,
1997
A,
Refunding,
6%,
1/15/46
...............................
35,834,000
49,520,072
Revenue,
Junior
Lien,
ETM,
Zero
Cpn.,
1/01/24
...........................
52,700,000
51,543,862
Revenue,
Junior
Lien,
ETM,
Zero
Cpn.,
1/01/25
...........................
45,200,000
43,529,024
Revenue,
Junior
Lien,
ETM,
Zero
Cpn.,
1/01/26
...........................
131,900,000
124,759,040
Revenue,
Junior
Lien,
ETM,
Zero
Cpn.,
1/01/27
...........................
139,100,000
128,936,965
Revenue,
Junior
Lien,
2014
B,
Refunding,
5.25%,
1/15/44
...................
20,000,000
21,747,504
Revenue,
Junior
Lien,
2014
B,
Refunding,
5.25%,
1/15/49
...................
25,000,000
27,092,317
San
Mateo
Foster
City
School
District
,
GO
,
A
,
Zero
Cpn.,
8/01/42
...............
40,000,000
44,003,480
San
Mateo
Union
High
School
District
,
GO
,
2011
A
,
Zero
Cpn.,
9/01/41
...........
20,000,000
22,453,998
San
Ysidro
School
District
,
GO,
2015,
Refunding,
AGMC
Insured,
Zero
Cpn.,
8/01/42
...................
10,000,000
3,789,405
GO,
2015,
Refunding,
AGMC
Insured,
Zero
Cpn.,
8/01/43
...................
12,500,000
4,482,931
Silicon
Valley
Tobacco
Securitization
Authority
,
Revenue,
2007
A,
Zero
Cpn.,
6/01/36
...................................
15,000,000
6,809,068
Revenue,
2007
C,
Zero
Cpn.,
6/01/56
..................................
60,000,000
7,172,598
Southern
California
Public
Power
Authority
,
Revenue
,
2007
A
,
5.25
%
,
11/01/27
.....
9,855,000
11,596,099
Tobacco
Securitization
Authority
of
Southern
California
,
San
Diego
County
Tobacco
Asset
Securitization
Corp.,
Revenue,
2006
B,
Zero
Cpn.,
6/01/46
........................................................
50,000,000
10,904,895
San
Diego
County
Tobacco
Asset
Securitization
Corp.,
Revenue,
2019
B-2,
Refunding,
Zero
Cpn.,
6/01/54
......................................
18,000,000
3,358,631
1,274,324,471
Colorado
5.4%
3rd
and
Havana
Metropolitan
District
,
GO
,
2020
A
,
5.25
%
,
12/01/49
.............
3,775,000
3,958,670
9th
Avenue
Metropolitan
District
No.
2
,
GO
,
2018
,
5
%
,
12/01/48
................
7,420,000
7,668,410
Aerotropolis
Regional
Transportation
Authority
,
Revenue
,
2019
,
5
%
,
12/01/51
......
5,500,000
5,759,186
Allison
Valley
Metropolitan
District
No.
1
,
GO
,
2020
,
Refunding
,
5
%
,
12/01/47
......
4,250,000
4,357,267
Allison
Valley
Metropolitan
District
No.
2
,
GO
,
2020
,
Refunding
,
4.7
%
,
12/01/47
.....
3,000,000
3,055,418
Aurora
Crossroads
Metropolitan
District
No.
2
,
GO,
Senior
Lien,
2020
A,
5%,
12/01/40
.................................
1,500,000
1,590,049
GO,
Senior
Lien,
2020
A,
5%,
12/01/50
.................................
1,500,000
1,557,725
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
94
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Colorado
(continued)
Banning
Lewis
Ranch
Regional
Metropolitan
District
No.
1
,
GO
,
2018
A
,
5.375
%
,
12/01/48
........................................................
$
2,245,000
$
2,359,244
Baseline
Metropolitan
District
No.
1
,
GO,
2021
A,
5%,
12/01/42
...........................................
555,000
575,133
GO,
2021
A,
5%,
12/01/51
...........................................
1,000,000
1,025,005
GO,
2021
B,
7.5%,
12/15/51
.........................................
2,190,000
2,063,554
b
Bent
Grass
Metropolitan
District
,
GO
,
144A,
2020
,
Refunding
,
5.25
%
,
12/01/49
.....
1,685,000
1,782,170
Bradburn
Metropolitan
District
No.
2
,
GO,
2018
A,
Refunding,
5%,
12/01/38
..................................
600,000
647,327
GO,
2018
A,
Refunding,
5%,
12/01/47
..................................
2,400,000
2,558,086
Brighton
Crossing
Metropolitan
District
No.
4
,
GO,
2017
A,
5%,
12/01/37
...........................................
525,000
545,714
GO,
2017
A,
5%,
12/01/47
...........................................
2,440,000
2,531,259
Brighton
Crossing
Metropolitan
District
No.
6
,
GO
,
2020
A(3)
,
5
%
,
12/01/50
........
2,000,000
2,077,571
b
Broadway
Park
North
Metropolitan
District
No.
2
,
GO,
144A,
2020,
Refunding,
5%,
12/01/40
...............................
1,325,000
1,414,491
GO,
144A,
2020,
Refunding,
5%,
12/01/49
...............................
1,575,000
1,669,148
b
Broomfield
Village
Metropolitan
District
No.
2
,
GO
,
144A,
2021
A-2
,
Refunding
,
5
%
,
12/01/49
........................................................
740,000
762,281
Centerra
Metropolitan
District
No.
1
,
GO
,
2020
A
,
Refunding
,
5
%
,
12/01/51
........
4,000,000
4,169,357
Clear
Creek
Transit
Metropolitan
District
No.
2
,
GO,
2021
A,
5%,
12/01/41
...........................................
580,000
604,145
GO,
2021
A,
5%,
12/01/50
...........................................
1,000,000
1,030,352
Colliers
Hill
Metropolitan
District
No.
2
,
GO
,
2022
B-1
,
Refunding
,
6
%
,
12/15/47
....
2,250,000
2,197,481
Colorado
Health
Facilities
Authority
,
Aberdeen
Ridge,
Inc.
Obligated
Group,
Revenue,
2021
A,
5%,
5/15/44
..........
2,250,000
2,320,165
Aberdeen
Ridge,
Inc.
Obligated
Group,
Revenue,
2021
A,
5%,
5/15/49
..........
1,500,000
1,534,317
Aberdeen
Ridge,
Inc.
Obligated
Group,
Revenue,
2021
A,
5%,
5/15/58
..........
3,250,000
3,290,426
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
4%,
8/01/49
7,000,000
7,543,089
Frasier
Meadows
Manor,
Inc.
Obligated
Group,
Revenue,
2017
A,
Refunding,
5.25%,
5/15/47
........................................................
6,500,000
7,215,889
Frasier
Meadows
Manor,
Inc.
Obligated
Group,
Revenue,
2017
B,
Refunding,
5%,
5/15/48
........................................................
12,255,000
12,814,801
Parkview
Medical
Center,
Inc.
Obligated
Group,
Revenue,
2020
A,
4%,
9/01/45
...
1,000,000
1,084,381
Parkview
Medical
Center,
Inc.
Obligated
Group,
Revenue,
2020
A,
4%,
9/01/50
...
4,525,000
4,879,178
Conestoga
Metropolitan
District
No.
2
,
GO
,
2021
A-3
,
Refunding
,
5.25
%
,
12/01/51
..
1,625,000
1,622,655
Constitution
Heights
Metropolitan
District
,
GO
,
2020
,
Refunding
,
5
%
,
12/01/49
.....
1,760,000
1,848,391
Copperleaf
Metropolitan
District
No.
6
,
GO
,
2018
A
,
5.25
%
,
12/01/48
.............
3,850,000
4,029,921
Cornerstar
Metropolitan
District
,
GO,
A,
Refunding,
5.125%,
12/01/37
...................................
2,000,000
2,076,429
GO,
A,
Refunding,
5.25%,
12/01/47
....................................
5,200,000
5,393,343
Cottonwood
Highlands
Metropolitan
District
No.
1
,
GO
,
2019
A
,
5
%
,
12/01/49
......
900,000
939,738
b
Denver
Health
&
Hospital
Authority
,
Revenue,
144A,
2017
A,
Refunding,
4%,
12/01/35
.........................
5,000,000
5,419,109
Revenue,
144A,
2017
A,
Refunding,
4%,
12/01/36
.........................
5,000,000
5,414,788
Denver
International
Business
Center
Metropolitan
District
No.
1
,
GO
,
2019
B
,
6
%
,
12/01/48
........................................................
4,290,000
4,527,926
b
DIATC
Metropolitan
District
,
GO
,
144A,
2019
,
Refunding
,
5
%
,
12/01/49
...........
2,000,000
2,094,806
E-470
Public
Highway
Authority
,
Revenue
,
2004
A
,
Refunding
,
NATL
Insured
,
Zero
Cpn.,
9/01/28
.....................................................
15,000,000
13,152,327
Eagle
Brook
Meadows
Metropolitan
District
No.
3
,
GO
,
2021
,
5
%
,
12/01/51
........
1,600,000
1,606,498
Evan's
Place
Metropolitan
District
,
GO,
2020
A(3),
5%,
12/01/40
.........................................
550,000
587,954
GO,
2020
A(3),
5%,
12/01/50
.........................................
1,575,000
1,646,664
First
Creek
Village
Metropolitan
District
,
GO,
2019
A,
5%,
12/01/39
...........................................
595,000
635,725
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
95
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Colorado
(continued)
First
Creek
Village
Metropolitan
District,
(continued)
GO,
2019
A,
5%,
8/01/49
............................................
$
540,000
$
572,587
Greenways
Metropolitan
District
No.
1
,
GO
,
2021
A-3
,
4.625
%
,
12/01/51
..........
1,580,000
1,478,089
b
Hidden
Creek
Metropolitan
District
,
GO
,
144A,
2021
A
,
4.625
%
,
12/01/45
.........
1,140,000
1,051,703
b
Horizon
Metropolitan
District
No.
2
,
GO
,
144A,
2021
A
,
4.5
%
,
12/01/51
...........
1,675,000
1,570,877
Hunters
Overlook
Metropolitan
District
No.
5
,
GO,
2019
A,
5%,
12/01/39
...........................................
750,000
798,806
GO,
2019
A,
5%,
12/01/49
...........................................
1,000,000
1,059,352
b
Jacoby
Farm
Metropolitan
District
,
GO
,
144A,
2021
,
Refunding
,
5
%
,
12/15/46
......
5,000,000
4,821,144
Jay
Grove
Metropolitan
District
,
GO
,
2021
,
4.25
%
,
12/01/51
...................
1,225,000
1,126,433
Jefferson
Center
Metropolitan
District
No.
1
,
Revenue,
2020
A-2,
4.125%,
12/01/40
..................................
575,000
590,314
Revenue,
2020
A-2,
4.375%,
12/01/47
..................................
1,125,000
1,156,740
Johnstown
Farms
East
Metropolitan
District
,
GO
,
2021
,
5
%
,
12/01/51
............
1,500,000
1,456,920
b
Karl's
Farm
Metropolitan
District
No.
2
,
GO,
144A,
2020
A(3),
5.375%,
12/01/40
.................................
645,000
686,535
GO,
144A,
2020
A(3),
5.625%,
12/01/50
.................................
1,900,000
2,001,261
Liberty
Ranch
Metropolitan
District
,
GO
,
2021
A
,
Refunding
,
5.25
%
,
12/01/51
......
6,590,000
6,230,631
Meadowlark
Metropolitan
District
,
Meadowland
Metropolitan
District,
GO,
Senior
Lien,
2020
A,
4.875%,
12/01/40
....
520,000
540,877
Meadowland
Metropolitan
District,
GO,
Senior
Lien,
2020
A,
5.125%,
12/01/50
....
750,000
773,597
Morgan
Hill
Metropolitan
District
No.
3
,
GO
,
2021
B
,
Refunding
,
6.375
%
,
12/15/51
...
1,465,000
1,413,731
Murphy
Creek
Metropolitan
District
No.
4
,
GO
,
2021
,
5
%
,
12/01/51
..............
8,000,000
7,735,134
Nexus
North
at
DIA
Metropolitan
District
,
GO
,
2021
,
5
%
,
12/01/51
...............
565,000
580,431
Palisade
Park
West
Metropolitan
District
,
GO
,
2019
A
,
5.125
%
,
12/01/49
..........
1,500,000
1,568,949
b
Plaza
Metropolitan
District
No.
1
,
Tax
Allocation
,
144A,
2013
,
Refunding
,
5
%
,
12/01/40
3,000,000
3,030,548
Prairie
Center
Metropolitan
District
No.
7
,
GO,
2020,
4.125%,
12/15/36
.........................................
500,000
516,632
GO,
2020,
4.875%,
12/15/44
.........................................
725,000
750,258
GO,
2021,
6.375%,
6/15/46
..........................................
1,330,000
1,258,481
Pronghorn
Valley
Metropolitan
District
,
GO,
2021
A,
3.75%,
12/01/41
.........................................
515,000
485,402
GO,
2021
A,
4%,
12/01/51
...........................................
650,000
617,408
Ptarmigan
West
Metropolitan
District
No.
2
,
GO
,
2021-3
,
4.125
%
,
12/01/51
........
1,475,000
1,355,259
Public
Authority
for
Colorado
Energy
,
Revenue,
2008,
6.125%,
11/15/23
.....................................
1,125,000
1,190,879
Revenue,
2008,
6.25%,
11/15/28
......................................
12,500,000
14,972,115
Revenue,
2008,
6.5%,
11/15/38
.......................................
60,100,000
86,644,121
Raindance
Metropolitan
District
No.
1
,
Non-Potable
Water
System,
Revenue,
2020,
5%,
12/01/40
...................
625,000
658,122
Non-Potable
Water
System,
Revenue,
2020,
5.25%,
12/01/50
................
4,250,000
4,418,369
Rampart
Range
Metropolitan
District
No.
5
,
Revenue,
2021,
4%,
12/01/36
........................................
1,250,000
1,253,558
Revenue,
2021,
4%,
12/01/41
........................................
2,730,000
2,704,977
Revenue,
2021,
4%,
12/01/51
........................................
6,670,000
6,367,903
Reunion
Metropolitan
District
,
Revenue
,
2021
A
,
3.625
%
,
12/01/44
..............
5,750,000
5,024,545
Ritoro
Metropolitan
District
,
GO
,
2019
A
,
5
%
,
12/01/49
.......................
2,000,000
2,092,735
RRC
Metropolitan
District
No.
2
,
GO
,
2021
,
5.25
%
,
12/01/51
...................
5,625,000
5,297,619
Severance
Shores
Metropolitan
District
No.
4
,
GO
,
2020
A
,
5
%
,
12/01/49
.........
2,900,000
3,069,900
Sierra
Ridge
Metropolitan
District
No.
2
,
GO,
Senior
Lien
,
2016
A
,
5.5
%
,
12/01/46
...
1,500,000
1,546,659
South
Aurora
Regional
Improvement
Authority
,
Revenue
,
2018
,
6.25
%
,
12/01/57
....
2,815,000
2,903,790
Southglenn
Metropolitan
District
,
GO,
2016,
Refunding,
5%,
12/01/30
....................................
3,470,000
3,577,687
GO,
2016,
Refunding,
5%,
12/01/36
....................................
810,000
834,661
GO,
2016,
Refunding,
5%,
12/01/46
....................................
4,200,000
4,305,789
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
96
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Colorado
(continued)
STC
Metropolitan
District
No.
2
,
GO,
2019
A,
Refunding,
5%,
12/01/38
..................................
$
2,000,000
$
2,116,594
GO,
2019
A,
Refunding,
5%,
12/01/49
..................................
1,000,000
1,052,405
Sterling
Ranch
Community
Authority
Board
,
Sterling
Ranch
Colorado
Metropolitan
District
No.
2,
Revenue,
2020
A,
Refunding,
3.75%,
12/01/40
.................................................
500,000
521,525
Sterling
Ranch
Colorado
Metropolitan
District
No.
2,
Revenue,
2020
A,
Refunding,
4.25%,
12/01/50
.................................................
1,150,000
1,216,970
Timberleaf
Metropolitan
District
,
GO
,
2020
A
,
5.75
%
,
12/01/50
..................
1,730,000
1,836,722
Village
at
Dry
Creek
Metropolitan
District
No.
2
(The)
,
GO
,
2019
,
4.375
%
,
12/01/44
..
893,000
913,805
Village
Metropolitan
District
(The)
,
GO,
2020,
Refunding,
5%,
12/01/40
....................................
1,100,000
1,194,543
GO,
2020,
Refunding,
5%,
12/01/49
....................................
1,750,000
1,890,676
Villages
at
Castle
Rock
Metropolitan
District
No.
4
,
1989
,
11.12
%
,
6/01/31
.........
3,000,000
2,850,000
Waterfront
at
Foster
Lake
Metropolitan
District
No.
2
,
GO,
Senior
Lien,
2022
A(3)-1,
5%,
12/01/42
..............................
3,705,000
3,588,476
GO,
Senior
Lien,
2022
A(3)-1,
5%,
12/01/51
..............................
4,085,000
3,853,295
GO,
Senior
Lien,
2022
A(3)-2,
Zero
Cpn.,
12/01/51
.........................
5,130,000
3,441,305
Water
Tap
Fee,
Revenue,
2022,
4.625%,
12/01/28
.........................
6,000,000
5,822,903
Wild
Plum
Metropolitan
District
,
GO
,
2019
A
,
5
%
,
12/01/49
....................
595,000
628,640
Willow
Bend
Metropolitan
District
,
GO,
Senior
Lien
,
2019
A
,
5
%
,
12/01/49
.........
1,000,000
1,043,895
371,700,845
Connecticut
0.5%
Connecticut
State
Health
&
Educational
Facilities
Authority
,
b
Church
Home
of
Hartford
Obligated
Group,
Revenue,
144A,
2016
A,
5%,
9/01/46
..
1,000,000
1,060,635
b
Church
Home
of
Hartford
Obligated
Group,
Revenue,
144A,
A,
5%,
9/01/53
......
7,850,000
8,299,219
Masonicare
Corp.
Obligated
Group,
Revenue,
F,
Refunding,
5%,
7/01/37
........
5,500,000
6,015,888
Masonicare
Corp.
Obligated
Group,
Revenue,
F,
Refunding,
5%,
7/01/43
........
13,000,000
14,119,559
b
McLean
Affiliates
Obligated
Group,
Revenue,
144A,
2020
A,
5%,
1/01/45
........
2,000,000
2,155,848
b
McLean
Affiliates
Obligated
Group,
Revenue,
144A,
2020
A,
5%,
1/01/55
........
2,800,000
3,002,428
b
Steel
Point
Infrastructure
Improvement
District
,
Tax
Allocation,
144A,
2021,
4%,
4/01/31
.................................
100,000
103,633
Tax
Allocation,
144A,
2021,
4%,
4/01/36
.................................
605,000
619,262
Tax
Allocation,
144A,
2021,
4%,
4/01/41
.................................
575,000
582,523
Tax
Allocation,
144A,
2021,
4%,
4/01/51
.................................
1,655,000
1,659,496
37,618,491
Florida
14.0%
Anabelle
Island
Community
Development
District
,
Special
Assessment,
2022,
2.7%,
5/01/27
...............................
655,000
643,801
Special
Assessment,
2022,
3.1%,
5/01/32
...............................
750,000
728,890
Special
Assessment,
2022,
3.5%,
5/01/42
...............................
1,945,000
1,895,401
Special
Assessment,
2022,
4%,
5/01/52
.................................
2,840,000
2,880,797
Artisan
Lakes
East
Community
Development
District
,
Special
Assessment,
2021-1,
2.3%,
5/01/26
..............................
225,000
219,746
Special
Assessment,
2021-1,
2.75%,
5/01/31
.............................
250,000
241,894
Special
Assessment,
2021-1,
3.125%,
5/01/41
............................
470,000
440,530
Special
Assessment,
2021-1,
4%,
5/01/51
...............................
455,000
464,798
b
Special
Assessment,
144A,
2021-2,
2.75%,
5/01/31
........................
275,000
263,226
b
Special
Assessment,
144A,
2021-2,
3.125%,
5/01/41
.......................
515,000
482,708
b
Special
Assessment,
144A,
2021-2,
4%,
5/01/52
..........................
550,000
561,844
b
Astonia
Community
Development
District
,
Special
Assessment,
144A,
2020,
4%,
5/01/40
............................
540,000
554,257
Special
Assessment,
144A,
2020,
4%,
5/01/51
............................
1,380,000
1,400,064
Assessment
Area
2,
Special
Assessment,
144A,
2021,
2.5%,
5/01/26
...........
200,000
196,541
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
97
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
b
Astonia
Community
Development
District,
(continued)
Assessment
Area
2,
Special
Assessment,
144A,
2021,
3%,
5/01/31
............
$
500,000
$
482,552
Assessment
Area
2,
Special
Assessment,
144A,
2021,
3.2%,
5/01/41
...........
750,000
707,707
Assessment
Area
2,
Special
Assessment,
144A,
2021,
4%,
5/01/52
............
800,000
809,776
North
Parcel
Assessment
Area,
Special
Assessment,
144A,
2021,
2.5%,
5/01/26
..
240,000
235,849
North
Parcel
Assessment
Area,
Special
Assessment,
144A,
2021,
3%,
5/01/31
....
320,000
308,833
North
Parcel
Assessment
Area,
Special
Assessment,
144A,
2021,
3.2%,
5/01/41
..
750,000
706,713
North
Parcel
Assessment
Area,
Special
Assessment,
144A,
2021,
4%,
5/01/51
....
500,000
506,110
Avalon
Groves
Community
Development
District
,
Special
Assessment,
2021,
3.125%,
5/01/41
.............................
360,000
335,988
Special
Assessment,
2021,
4%,
5/01/51
.................................
500,000
508,682
Assessment
Area
3,
Special
Assessment,
2021,
3%,
5/01/32
.................
200,000
191,417
Assessment
Area
3,
Special
Assessment,
2021,
3.375%,
5/01/41
..............
500,000
479,555
Assessment
Area
3,
Special
Assessment,
2021,
4%,
5/01/51
.................
500,000
507,512
Avalon
Park
West
Community
Development
District
,
Special
Assessment,
2020,
Refunding,
3.25%,
5/01/30
......................
215,000
215,474
Special
Assessment,
2020,
Refunding,
3.75%,
5/01/40
......................
580,000
584,889
Special
Assessment,
2020,
Refunding,
4%,
5/01/51
........................
880,000
891,571
Ave
Maria
Stewardship
Community
District
,
Special
Assessment,
2022
A,
Refunding,
4%,
5/01/42
.......................
5,020,000
5,150,700
Maple
Ridge
Phase
5
Project
Area,
Special
Assessment,
2022,
4%,
5/01/52
......
2,640,000
2,666,288
Avenir
Community
Development
District
,
Assessment
Area
2,
Special
Assessment,
2021
A-1,
2.75%,
5/01/31
............
3,250,000
3,164,512
Assessment
Area
2,
Special
Assessment,
2021
A-1,
3.2%,
5/01/41
.............
5,000,000
4,846,968
Assessment
Area
2,
Special
Assessment,
2021
A-1,
3.4%,
5/01/52
.............
5,000,000
4,855,787
Aviary
at
Rutland
Ranch
Community
Development
District
,
Assessment
Area
2,
Special
Assessment,
2021,
3.1%,
11/01/31
...............
170,000
164,932
Assessment
Area
2,
Special
Assessment,
2021,
3.4%,
11/01/41
...............
410,000
393,464
Assessment
Area
2,
Special
Assessment,
2021,
4%,
11/01/51
................
750,000
755,959
Babcock
Ranch
Community
Independent
Special
District
,
Special
Assessment,
2021,
2.875%,
5/01/31
.............................
465,000
455,605
Special
Assessment,
2021,
3.2%,
5/01/41
...............................
5,250,000
5,073,869
Special
Assessment,
2021,
4%,
5/01/52
.................................
2,910,000
2,984,044
Assessment
Area
2C,
Special
Assessment,
2020,
3%,
5/01/30
................
250,000
251,408
Assessment
Area
2C,
Special
Assessment,
2020,
4%,
5/01/40
................
775,000
807,597
Assessment
Area
2C,
Special
Assessment,
2020,
4%,
5/01/51
................
1,550,000
1,590,381
Assessment
Area
3A,
Special
Assessment,
2020,
3%,
5/01/30
................
250,000
251,408
Assessment
Area
3A,
Special
Assessment,
2020,
4%,
5/01/40
................
1,840,000
1,917,392
Assessment
Area
3A,
Special
Assessment,
2020,
4%,
5/01/50
................
2,500,000
2,566,947
Assessment
Area
3B,
Special
Assessment,
2020,
4%,
5/01/40
................
385,000
401,193
Assessment
Area
3B,
Special
Assessment,
2020,
4%,
5/01/51
................
890,000
913,187
e
Balm
Grove
Community
Development
District
,
Special
Assessment,
2022,
3.25%,
11/01/27
..............................
1,365,000
1,368,470
Special
Assessment,
2022,
3.625%,
11/01/32
.............................
1,290,000
1,295,631
Special
Assessment,
2022,
4%,
11/01/42
................................
2,500,000
2,510,684
Special
Assessment,
2022,
4.125%,
11/01/51
.............................
3,125,000
3,138,260
Bannon
Lakes
Community
Development
District
,
b
Special
Assessment,
144A,
2021,
3.5%,
5/01/41
..........................
700,000
688,293
b
Special
Assessment,
144A,
2021,
4%,
5/01/51
............................
775,000
787,470
c
Special
Assessment,
2022,
3.3%,
5/01/32
...............................
365,000
365,510
c
Special
Assessment,
2022,
4%,
5/01/42
.................................
1,385,000
1,422,196
c
Special
Assessment,
2022,
4%,
5/01/53
.................................
2,260,000
2,297,676
Banyan
Cay
Community
Development
District
,
Special
Assessment
,
2020
NM
,
4
%
,
11/01/51
........................................................
3,000,000
3,002,049
Belmond
Reserve
Community
Development
District
,
Special
Assessment,
2020,
4%,
5/01/40
.................................
1,750,000
1,798,374
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
98
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
Belmond
Reserve
Community
Development
District,
(continued)
Special
Assessment,
2020,
4%,
5/01/51
.................................
$
3,635,000
$
3,680,430
Belmont
II
Community
Development
District
,
Special
Assessment,
2020,
3.125%,
12/15/30
.............................
325,000
325,191
Special
Assessment,
2020,
3.625%,
12/15/40
.............................
1,390,000
1,390,877
Special
Assessment,
2020,
4%,
12/15/50
................................
1,000,000
1,014,028
Berry
Bay
Community
Development
District
,
Special
Assessment,
2021,
2.625%,
5/01/26
.............................
250,000
248,141
Special
Assessment,
2021,
3.125%,
5/01/31
.............................
400,000
392,782
Special
Assessment,
2021,
3.625%,
5/01/41
.............................
1,250,000
1,227,892
Special
Assessment,
2021,
4%,
5/01/51
.................................
1,500,000
1,511,401
Boggy
Branch
Community
Development
District
,
Special
Assessment,
2021,
2.5%,
5/01/26
...............................
395,000
390,979
Special
Assessment,
2021,
3%,
5/01/31
.................................
450,000
438,690
Special
Assessment,
2021,
3.5%,
5/01/41
...............................
1,165,000
1,131,616
Special
Assessment,
2021,
4%,
5/01/51
.................................
1,360,000
1,373,474
b,c
Bridgewater
North
Community
Development
District
,
Special
Assessment,
144A,
2022,
3.125%,
5/01/27
.........................
200,000
200,184
Special
Assessment,
144A,
2022,
3.5%,
5/01/32
..........................
350,000
350,583
Special
Assessment,
144A,
2022,
4%,
5/01/42
............................
1,000,000
1,022,588
Special
Assessment,
144A,
2022,
4%,
5/01/52
............................
3,000,000
3,029,830
Brightwater
Community
Development
District
,
Special
Assessment,
2021,
2.85%,
5/01/31
..............................
300,000
289,400
Special
Assessment,
2021,
3.15%,
5/01/41
..............................
750,000
717,602
Special
Assessment,
2021,
4%,
5/01/52
.................................
2,890,000
2,963,535
b
Cape
Coral
Health
Facilities
Authority
,
Gulf
Care,
Inc.
Obligated
Group
,
Revenue,
Senior
Lien
,
144A,
2015
,
Refunding
,
6
%
,
7/01/45
..........................
5,250,000
5,457,752
b
Capital
Trust
Agency,
Inc.
,
AcadeMir
Charter
School
West,
Revenue,
144A,
2021
A,
3%,
7/01/31
..........
100,000
98,316
AcadeMir
Charter
School
West,
Revenue,
144A,
2021
A,
4%,
7/01/41
..........
1,200,000
1,251,253
AcadeMir
Charter
School
West,
Revenue,
144A,
2021
A,
4%,
7/01/51
..........
1,515,000
1,555,344
AcadeMir
Charter
School
West,
Revenue,
144A,
2021
A,
4%,
7/01/56
..........
1,195,000
1,217,345
Educational
Growth
Fund
LLC,
Revenue,
144A,
2021
B,
Zero
Cpn.,
7/01/31
......
10,715,000
6,342,295
Educational
Growth
Fund
LLC,
Revenue,
Senior
Lien,
144A,
2021
A-1,
5%,
7/01/56
5,000,000
5,438,705
Sarasota-Manatee
Jewish
Housing
Council
Obligated
Group,
Revenue,
144A,
2017,
Refunding,
5%,
7/01/46
............................................
3,250,000
3,298,355
SHI
-
Lake
Osborne
LLC,
Revenue,
144A,
2021
A-2,
4.43%,
1/01/57
...........
10,245,000
9,269,960
South
Tech
Schools
Obligated
Group,
Revenue,
144A,
2020
A,
5%,
6/15/40
......
1,235,000
1,292,647
South
Tech
Schools
Obligated
Group,
Revenue,
144A,
2020
A,
5%,
6/15/55
......
3,805,000
3,934,958
University
Bridge
LLC,
Revenue,
144A,
2018
A,
5.25%,
12/01/43
..............
31,755,000
35,512,293
WFCS
Holdings
II
LLC,
Revenue,
144A,
2021
A-1,
3.3%,
1/01/31
..............
100,000
94,332
WFCS
Holdings
II
LLC,
Revenue,
144A,
2021
A-1,
5%,
1/01/56
...............
1,050,000
1,101,109
WFCS
Holdings
LLC,
Revenue,
144A,
2020
A-1,
5%,
1/01/55
.................
3,500,000
3,664,827
Celebration
Community
Development
District
,
Special
Assessment,
2021,
2.25%,
5/01/26
..............................
100,000
97,435
Special
Assessment,
2021,
2.75%,
5/01/31
..............................
240,000
229,158
Special
Assessment,
2021,
3.125%,
5/01/41
.............................
590,000
549,204
Special
Assessment,
2021,
4%,
5/01/51
.................................
850,000
865,259
Celebration
Pointe
Community
Development
District
No.
1
,
Special
Assessment,
2021,
3.375%,
5/01/41
.............................
1,000,000
959,648
Special
Assessment,
2021,
4%,
5/01/53
.................................
1,500,000
1,511,171
CFM
Community
Development
District
,
Special
Assessment,
2021,
2.4%,
5/01/26
...............................
195,000
191,771
Special
Assessment,
2021,
4%,
5/01/51
.................................
1,265,000
1,275,587
Chaparral
Palm
Bay
Community
Development
District
,
Special
Assessment,
2020
A-1,
4%,
5/01/40
..............................
1,235,000
1,263,468
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
99
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
Chaparral
Palm
Bay
Community
Development
District,
(continued)
Special
Assessment,
2020
A-1,
4%,
5/01/50
..............................
$
2,015,000
$
2,041,195
b
Chapel
Creek
Community
Development
District
,
Special
Assessment,
144A,
2021,
3%,
5/01/31
............................
260,000
251,324
Special
Assessment,
144A,
2021,
3.375%,
5/01/41
.........................
875,000
834,442
Special
Assessment,
144A,
2021,
4%,
5/01/52
............................
1,125,000
1,131,825
b
Chapel
Crossings
Community
Development
District
,
Special
Assessment,
144A,
2020,
2.625%,
5/01/25
.........................
485,000
485,430
Special
Assessment,
144A,
2020,
3.2%,
5/01/30
..........................
695,000
693,495
Special
Assessment,
144A,
2020,
3.7%,
5/01/40
..........................
1,825,000
1,834,403
Special
Assessment,
144A,
2020,
4%,
5/01/51
............................
3,010,000
3,047,779
b
Charlotte
County
Industrial
Development
Authority
,
MSKP
Town
&
Country
Utility
LLC,
Revenue,
144A,
2021
A,
4%,
10/01/41
.......
1,500,000
1,547,954
MSKP
Town
&
Country
Utility
LLC,
Revenue,
144A,
2021
A,
4%,
10/01/51
.......
4,000,000
4,069,559
MSKP
Town
&
Country
Utility
LLC,
Revenue,
144A,
2021
B,
5%,
10/01/36
.......
2,500,000
2,414,394
b
Coco
Palms
Community
Development
District
,
Special
Assessment
,
144A,
2019
,
4.75
%
,
6/15/39
...................................................
500,000
536,737
Collier
County
Educational
Facilities
Authority
,
Ave
Maria
University,
Inc.,
Revenue,
2013
A,
Refunding,
6%,
6/01/33
...........
5,500,000
5,733,994
Ave
Maria
University,
Inc.,
Revenue,
2013
A,
Refunding,
6%,
6/01/38
...........
12,000,000
12,492,425
Hodges
University,
Inc.,
Revenue,
2013,
Pre-Refunded,
6.125%,
11/01/43
.......
10,035,000
10,833,140
Coral
Keys
Homes
Community
Development
District
,
Special
Assessment,
2020,
4%,
5/01/40
.................................
570,000
586,894
Special
Assessment,
2020,
4%,
5/01/50
.................................
750,000
760,238
Cordoba
Ranch
Community
Development
District
,
Special
Assessment,
2021,
Refunding,
3%,
5/01/31
........................
835,000
823,111
Special
Assessment,
2021,
Refunding,
3%,
5/01/37
........................
825,000
788,304
b
Cordova
Palms
Community
Development
District
,
Special
Assessment,
144A,
2021,
2.4%,
5/01/26
..........................
345,000
337,344
Special
Assessment,
144A,
2021,
2.8%,
5/01/31
..........................
385,000
368,106
Special
Assessment,
144A,
2021,
3%,
5/01/41
............................
1,215,000
1,111,503
Special
Assessment,
144A,
2021,
4%,
5/01/52
............................
1,945,000
1,973,279
b
Crestview
II
Community
Development
District
,
Special
Assessment,
144A,
2020,
Refunding,
4%,
5/01/31
...................
250,000
268,583
Special
Assessment,
144A,
2020,
Refunding,
4%,
5/01/37
...................
475,000
496,118
Crystal
Cay
Community
Development
District
,
Special
Assessment,
2021,
2.7%,
5/01/31
...............................
200,000
188,903
Special
Assessment,
2021,
3.05%,
5/01/41
..............................
850,000
779,844
Special
Assessment,
2021,
4%,
5/01/51
.................................
1,000,000
1,012,993
b
Currents
Community
Development
District
,
Special
Assessment,
144A,
2020
A,
4%,
5/01/40
..........................
3,100,000
3,176,576
Special
Assessment,
144A,
2020
A,
4%,
5/01/51
..........................
5,815,000
5,895,047
b
Cypress
Bluff
Community
Development
District
,
Special
Assessment,
144A,
2020
A,
3.125%,
5/01/30
.......................
250,000
250,767
Special
Assessment,
144A,
2020
A,
3.625%,
5/01/40
.......................
800,000
803,628
Special
Assessment,
144A,
2020
A,
3.8%,
5/01/50
.........................
1,175,000
1,181,521
b
Cypress
Park
Estates
Community
Development
District
,
Special
Assessment,
144A,
2020,
3.25%,
5/01/30
.........................
295,000
293,700
Special
Assessment,
144A,
2020,
3.875%,
5/01/40
.........................
1,170,000
1,188,163
Special
Assessment,
144A,
2020,
4%,
5/01/51
............................
1,210,000
1,225,328
DG
Farms
Community
Development
District
,
Special
Assessment,
2020,
2.75%,
5/01/25
..............................
150,000
149,411
Special
Assessment,
2020,
3.25%,
5/01/30
..............................
215,000
212,863
Special
Assessment,
2020,
3.75%,
5/01/40
..............................
325,000
321,187
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
100
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
b
Downtown
Doral
South
Community
Development
District
,
Assessment
Area
2
,
Special
Assessment
,
144A,
2018
,
5
%
,
12/15/48
.................................
$
5,310,000
$
5,846,388
b
DW
Bayview
Community
Development
District
,
Special
Assessment,
144A,
2021,
2.375%,
5/01/26
.........................
410,000
404,062
Special
Assessment,
144A,
2021,
3%,
5/01/32
............................
430,000
410,931
Special
Assessment,
144A,
2021,
3.375%,
5/01/41
.........................
1,160,000
1,110,076
Special
Assessment,
144A,
2021,
4%,
5/01/51
............................
750,000
756,840
East
547
Community
Development
District
,
Assessment
Area
1,
Special
Assessment,
2021,
2.5%,
5/01/26
................
160,000
157,233
Assessment
Area
1,
Special
Assessment,
2021,
3%,
5/01/31
.................
140,000
135,221
Assessment
Area
1,
Special
Assessment,
2021,
3.3%,
5/01/41
................
600,000
571,212
Assessment
Area
1,
Special
Assessment,
2021,
4%,
5/01/51
.................
830,000
836,309
East
Bonita
Beach
Road
Community
Development
District
,
Special
Assessment,
2021,
3%,
5/01/32
.................................
255,000
243,692
Special
Assessment,
2021,
3.25%,
5/01/41
..............................
750,000
712,861
Special
Assessment,
2021,
4%,
5/01/51
.................................
750,000
761,267
East
Nassau
Stewardship
District
,
Special
Assessment,
2021,
2.4%,
5/01/26
...............................
330,000
325,095
Special
Assessment,
2021,
3%,
5/01/31
.................................
500,000
484,851
Special
Assessment,
2021,
3.5%,
5/01/41
...............................
1,270,000
1,226,863
Special
Assessment,
2021,
4%,
5/01/51
.................................
1,520,000
1,526,893
Eden
Hills
Community
Development
District
,
Special
Assessment,
2020,
3.25%,
5/01/30
..............................
110,000
109,840
Special
Assessment,
2020,
4%,
5/01/40
.................................
300,000
306,950
Special
Assessment,
2020,
4.125%,
5/01/51
.............................
500,000
508,305
c
Special
Assessment,
2022,
3.25%,
5/01/27
..............................
455,000
456,222
c
Special
Assessment,
2022,
3.625%,
5/01/32
.............................
610,000
613,861
c
Special
Assessment,
2022,
4%,
5/01/42
.................................
1,645,000
1,659,978
c
Special
Assessment,
2022,
4.125%,
5/01/52
.............................
1,590,000
1,601,745
Edgewater
East
Community
Development
District
,
Assessment
Area
One,
Special
Assessment,
2021,
2.5%,
5/01/26
.............
525,000
521,495
Assessment
Area
One,
Special
Assessment,
2021,
3.1%,
5/01/31
.............
700,000
690,077
Assessment
Area
One,
Special
Assessment,
2021,
3.6%,
5/01/41
.............
2,625,000
2,596,140
Assessment
Area
One,
Special
Assessment,
2021,
4%,
5/01/51
...............
2,825,000
2,861,639
Assessment
Area
Two,
Special
Assessment,
2022,
3.375%,
5/01/32
............
1,985,000
1,979,857
Assessment
Area
Two,
Special
Assessment,
2022,
4%,
5/01/42
...............
4,000,000
4,063,386
Assessment
Area
Two,
Special
Assessment,
2022,
4%,
5/01/52
...............
7,200,000
7,217,609
b
Enbrook
Community
Development
District
,
Special
Assessment,
144A,
2020,
4%,
5/01/40
............................
835,000
859,008
Special
Assessment,
144A,
2020,
4%,
5/01/51
............................
1,150,000
1,165,966
b
Entrada
Community
Development
District
,
Special
Assessment,
144A,
2021,
2.125%,
5/01/26
.........................
165,000
162,853
Special
Assessment,
144A,
2021,
2.625%,
5/01/31
.........................
370,000
359,414
Special
Assessment,
144A,
2021,
3.125%,
5/01/41
.........................
935,000
900,389
Special
Assessment,
144A,
2021,
4%,
5/01/52
............................
2,300,000
2,359,803
Epperson
North
Community
Development
District
,
b
Special
Assessment,
144A,
2018
A-1,
5.5%,
11/01/39
.......................
1,500,000
1,681,854
Special
Assessment,
2021,
2.5%,
5/01/26
...............................
270,000
265,651
Special
Assessment,
2021,
3%,
5/01/31
.................................
315,000
300,370
Special
Assessment,
2021,
3.5%,
5/01/41
...............................
1,555,000
1,511,229
Special
Assessment,
2021,
4%,
5/01/51
.................................
3,220,000
3,254,288
Special
Assessment,
2021
A,
2.45%,
11/01/26
............................
250,000
244,048
Special
Assessment,
2021
A,
3.1%,
11/01/31
.............................
500,000
480,380
Special
Assessment,
2021
A,
3.4%,
11/01/41
.............................
1,250,000
1,197,488
Special
Assessment,
2021
A,
4%,
11/01/51
..............................
3,750,000
3,791,010
Epperson
Ranch
II
Community
Development
District
,
Assessment
Area
2,
Special
Assessment,
2020,
3.25%,
5/01/25
...............
610,000
615,845
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
101
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
Epperson
Ranch
II
Community
Development
District,
(continued)
Assessment
Area
2,
Special
Assessment,
2020,
3.625%,
5/01/30
..............
$
900,000
$
918,633
Assessment
Area
2,
Special
Assessment,
2020,
4.2%,
5/01/40
................
2,455,000
2,553,400
Assessment
Area
2,
Special
Assessment,
2020,
4.375%,
5/01/51
..............
4,235,000
4,415,183
Escambia
County
Health
Facilities
Authority
,
Baptist
Health
Care
Corp.
Obligated
Group
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
8/15/45
.........................
9,000,000
9,649,796
Fallschase
Community
Development
District
,
Special
Assessment,
2021,
3.125%,
5/01/31
.............................
750,000
725,529
Special
Assessment,
2021,
3.375%,
5/01/41
.............................
1,000,000
948,480
Special
Assessment,
2021,
4%,
5/01/52
.................................
2,215,000
2,223,308
Florida
Development
Finance
Corp.
,
b
Revenue,
144A,
2021
A,
4%,
7/01/51
...................................
1,700,000
1,749,923
b,f
Brightline
Trains
Florida
LLC,
Revenue,
144A,
2019
A,
Refunding,
Mandatory
Put,
6.375%,
1/01/26
.................................................
2,000,000
2,021,119
b,f
Brightline
Trains
Florida
LLC,
Revenue,
144A,
2019
A,
Refunding,
Mandatory
Put,
6.5%,
1/01/29
...................................................
4,000,000
4,037,491
b
Brightline
Trains
Florida
LLC,
Revenue,
144A,
2019
B,
7.375%,
1/01/49
.........
17,000,000
18,329,825
b,f
Brightline
Trains
Florida
LLC,
Revenue,
144A,
2021
A-1,
Mandatory
Put,
6.75%,
8/15/23
........................................................
31,000,000
30,320,275
Glenridge
on
Palmer
Ranch
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
6/01/31
........................................................
175,000
196,473
Glenridge
on
Palmer
Ranch
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
6/01/35
........................................................
200,000
222,725
Glenridge
on
Palmer
Ranch
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
6/01/51
........................................................
5,500,000
6,013,492
b
Mayflower
Retirement
Center,
Inc.
Obligated
Group,
Revenue,
144A,
2020
A,
5.25%,
6/01/50
........................................................
5,000,000
5,594,892
b
Mayflower
Retirement
Center,
Inc.
Obligated
Group,
Revenue,
144A,
2021
A,
Refunding,
4%,
6/01/46
............................................
2,000,000
2,086,373
b
Mayflower
Retirement
Center,
Inc.
Obligated
Group,
Revenue,
144A,
2021
A,
Refunding,
4%,
6/01/55
............................................
1,750,000
1,812,937
River
City
Education
Obligated
Group,
Revenue,
2021
A,
4%,
7/01/55
..........
1,000,000
1,037,829
b
Forest
Lake
Community
Development
District
,
Special
Assessment,
144A,
2020,
3.25%,
5/01/30
.........................
350,000
350,971
Special
Assessment,
144A,
2020,
4%,
5/01/40
............................
1,275,000
1,309,840
Special
Assessment,
144A,
2020,
4%,
5/01/51
............................
1,170,000
1,184,563
Gracewater
Sarasota
Community
Development
District
,
Special
Assessment,
2021,
2.4%,
5/01/26
...............................
250,000
245,801
Special
Assessment,
2021,
2.95%,
5/01/31
..............................
500,000
483,164
Special
Assessment,
2021,
3.35%,
5/01/41
..............................
3,170,000
3,031,169
Special
Assessment,
2021,
4%,
5/01/52
.................................
1,535,000
1,549,026
Grand
Oaks
Community
Development
District
,
Special
Assessment,
2020,
4.25%,
5/01/40
..............................
1,100,000
1,128,524
Special
Assessment,
2020,
4.5%,
5/01/52
...............................
3,500,000
3,603,235
Assessment
Area
No.
3,
Special
Assessment,
2021,
3.2%,
11/01/31
............
215,000
211,477
Assessment
Area
No.
3,
Special
Assessment,
2021,
3.5%,
11/01/41
............
555,000
541,086
Assessment
Area
No.
3,
Special
Assessment,
2021,
4%,
11/01/51
.............
1,205,000
1,217,479
Grande
Pines
Community
Development
District
,
Special
Assessment,
2021,
3.75%,
5/01/41
..............................
710,000
693,813
Special
Assessment,
2021,
4%,
5/01/51
.................................
750,000
741,051
Greeneway
Improvement
District
,
Special
Assessment
,
2013
,
5.125
%
,
5/01/43
.....
27,440,000
27,905,155
Grove
Resort
Community
Development
District
,
Special
Assessment,
2022,
3.3%,
5/01/32
...............................
170,000
168,833
Special
Assessment,
2022,
3.55%,
5/01/42
..............................
435,000
430,039
Special
Assessment,
2022,
4%,
5/01/52
.................................
640,000
651,765
Hammock
Reserve
Community
Development
District
,
Special
Assessment,
2020,
4%,
5/01/40
.................................
540,000
552,927
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
102
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
Hammock
Reserve
Community
Development
District,
(continued)
Special
Assessment,
2020,
4%,
5/01/51
.................................
$
860,000
$
870,748
Special
Assessment,
2021,
3%,
5/01/31
.................................
200,000
191,578
Special
Assessment,
2021,
3.375%,
5/01/41
.............................
525,000
504,152
Special
Assessment,
2021,
4%,
5/01/51
.................................
635,000
643,251
Hawkstone
Community
Development
District
,
Special
Assessment,
2021,
2.6%,
5/01/26
...............................
155,000
151,681
Special
Assessment,
2021,
3.2%,
5/01/31
...............................
440,000
424,413
Special
Assessment,
2021,
3.45%,
5/01/41
..............................
1,125,000
1,083,599
Special
Assessment,
2021,
4%,
5/01/52
.................................
1,000,000
1,004,535
Heritage
Harbour
North
Community
Development
District
,
Special
Assessment
,
2014
,
5.125
%
,
5/01/45
...................................................
2,170,000
2,424,906
Hills
of
Minneola
Community
Development
District
,
b
Special
Assessment,
144A,
2020,
3.5%,
5/01/31
..........................
1,000,000
1,012,005
b
Special
Assessment,
144A,
2020,
4%,
5/01/40
............................
2,625,000
2,675,026
b
Special
Assessment,
144A,
2020,
4%,
5/01/50
............................
5,505,000
5,565,612
Special
Assessment,
2021,
2.375%,
5/01/26
.............................
100,000
97,449
Special
Assessment,
2021,
2.8%,
5/01/31
...............................
250,000
238,536
Special
Assessment,
2021,
3.2%,
5/01/41
...............................
500,000
468,946
Special
Assessment,
2021,
4%,
5/01/52
.................................
900,000
908,238
Holly
Hill
Road
East
Community
Development
District
,
Special
Assessment,
2020,
4.5%,
11/01/31
...............................
165,000
174,669
Special
Assessment,
2020,
5%,
11/01/41
................................
350,000
378,805
Special
Assessment,
2020,
5%,
11/01/50
................................
520,000
562,351
c
Hyde
Park
Community
Development
District
No.
1
,
Special
Assessment,
2022,
4%,
5/01/42
.................................
2,710,000
2,748,276
Special
Assessment,
2022,
4%,
5/01/52
.................................
2,545,000
2,536,059
Indigo
Community
Development
District
,
Special
Assessment,
1999
A,
7%,
5/01/31
...............................
560,000
560,907
Special
Assessment,
1999
C,
7%,
5/01/30
...............................
4,123,752
2,886,626
2021
Assessment
Area,
Special
Assessment,
2021,
2.2%,
5/01/26
.............
245,000
239,918
2021
Assessment
Area,
Special
Assessment,
2021,
2.7%,
5/01/31
.............
240,000
230,158
2021
Assessment
Area,
Special
Assessment,
2021,
3.125%,
5/01/41
...........
855,000
797,972
2021
Assessment
Area,
Special
Assessment,
2021,
4%,
5/01/52
..............
1,375,000
1,392,865
Kindred
Community
Development
District
II
,
Special
Assessment,
2020,
3.5%,
5/01/40
...............................
395,000
397,502
Special
Assessment,
2020,
3.75%,
5/01/50
..............................
570,000
575,980
Special
Assessment,
2021,
2.2%,
5/01/26
...............................
100,000
98,585
Special
Assessment,
2021,
2.7%,
5/01/31
...............................
235,000
228,279
Special
Assessment,
2021,
3.125%,
5/01/41
.............................
500,000
476,661
Special
Assessment,
2021,
4%,
5/01/52
.................................
1,810,000
1,846,719
Kingman
Gate
Community
Development
District
,
Special
Assessment,
2020,
3.125%,
6/15/30
.............................
375,000
379,116
Special
Assessment,
2020,
4%,
6/15/40
.................................
775,000
804,894
Special
Assessment,
2020,
4%,
6/15/50
.................................
2,270,000
2,314,816
Special
Assessment,
2021,
2.5%,
6/15/26
...............................
100,000
98,994
Special
Assessment,
2021,
3.125%,
6/15/31
.............................
250,000
245,241
Special
Assessment,
2021,
3.6%,
6/15/41
...............................
750,000
735,633
Special
Assessment,
2021,
4%,
6/15/51
.................................
750,000
755,179
Lake
Ashton
Community
Development
District
,
Special
Assessment
,
2015
A-1
,
Refunding
,
5
%
,
5/01/32
.............................................
2,205,000
2,305,399
Lakes
of
Sarasota
Community
Development
District
,
Special
Assessment,
2021
A-1,
3.9%,
5/01/41
............................
285,000
278,583
Special
Assessment,
2021
A-1,
4.1%,
5/01/51
............................
265,000
260,118
Special
Assessment,
2021
A-2,
3.875%,
5/01/31
..........................
755,000
737,584
Special
Assessment,
2021
B-1,
3.625%,
5/01/31
..........................
125,000
123,316
Special
Assessment,
2021
B-1,
4.125%,
5/01/41
..........................
200,000
195,197
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
103
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
Lakes
of
Sarasota
Community
Development
District,
(continued)
Special
Assessment,
2021
B-1,
4.3%,
5/01/51
............................
$
325,000
$
316,545
Special
Assessment,
2021
B-2,
4.125%,
5/01/31
..........................
1,000,000
984,580
Lakewood
Park
Community
Development
District
,
Assessment
Area
1,
Special
Assessment,
2021,
3.2%,
5/01/31
................
125,000
122,559
Assessment
Area
1,
Special
Assessment,
2021,
3.625%,
5/01/41
..............
325,000
316,215
Assessment
Area
1,
Special
Assessment,
2021,
4%,
5/01/52
.................
500,000
501,503
Lakewood
Ranch
Stewardship
District
,
Special
Assessment,
2020,
3%,
5/01/30
.................................
470,000
462,948
b
Special
Assessment,
144A,
2020,
3.125%,
5/01/30
.........................
250,000
250,809
b
Special
Assessment,
144A,
2020,
Refunding,
3.2%,
5/01/30
..................
440,000
442,461
Special
Assessment,
2020,
3.5%,
5/01/40
...............................
750,000
745,083
b
Special
Assessment,
144A,
2020,
3.625%,
5/01/40
.........................
1,080,000
1,085,659
b
Special
Assessment,
144A,
2020,
Refunding,
3.75%,
5/01/40
.................
2,100,000
2,129,465
b
Special
Assessment,
144A,
2020,
Refunding,
4%,
5/01/50
...................
1,250,000
1,274,846
Special
Assessment,
2020,
4%,
5/01/50
.................................
1,270,000
1,295,026
b
Special
Assessment,
144A,
2020,
3.875%,
5/01/51
.........................
2,650,000
2,674,134
Special
Assessment,
2020
A,
3.75%,
5/01/40
.............................
525,000
531,165
Special
Assessment,
2020
A,
3.9%,
5/01/50
..............................
770,000
778,839
Star
Farms
at
Lakewood
Ranch
Proj-Phase
1/2,
Special
Assessment,
2021,
2.3%,
5/01/26
........................................................
185,000
181,432
Star
Farms
at
Lakewood
Ranch
Proj-Phase
1/2,
Special
Assessment,
2021,
2.7%,
5/01/31
........................................................
105,000
101,006
Star
Farms
at
Lakewood
Ranch
Proj-Phase
1/2,
Special
Assessment,
2021,
3%,
5/01/41
........................................................
430,000
400,724
Star
Farms
at
Lakewood
Ranch
Proj-Phase
1/2,
Special
Assessment,
2021,
4%,
5/01/52
........................................................
685,000
699,217
Laurel
Road
Community
Development
District
,
Special
Assessment,
2021
A-1,
2.6%,
5/01/26
............................
230,000
224,918
Special
Assessment,
2021
A-1,
3%,
5/01/31
..............................
350,000
330,601
Special
Assessment,
2021
A-1,
3.25%,
5/01/41
...........................
1,195,000
1,096,536
Special
Assessment,
2021
A-1,
4%,
5/01/52
..............................
1,455,000
1,459,374
Special
Assessment,
2021
A-2,
3.125%,
5/01/31
..........................
2,140,000
2,055,516
Leomas
Landing
Community
Development
District
,
Special
Assessment,
2021,
2.4%,
5/01/26
...............................
335,000
328,533
Special
Assessment,
2021,
2.95%,
5/01/31
..............................
470,000
455,471
Special
Assessment,
2021,
3.35%,
5/01/41
..............................
1,210,000
1,158,618
Special
Assessment,
2021,
4%,
5/01/52
.................................
1,645,000
1,660,032
Live
Oak
Lake
Community
Development
District
,
Special
Assessment,
2020,
4.4%,
5/01/40
...............................
1,600,000
1,675,929
Special
Assessment,
2020,
4.6%,
5/01/51
...............................
2,845,000
3,007,634
LTC
Ranch
West
Residential
Community
Development
District
,
Special
Assessment,
2021
B,
3.25%,
5/01/31
.............................
4,000,000
3,904,556
Assessment
Area
1,
Special
Assessment,
2021
A,
3.125%,
5/01/31
............
700,000
673,851
Assessment
Area
1,
Special
Assessment,
2021
A,
3.45%,
5/01/41
.............
1,250,000
1,205,663
Assessment
Area
1,
Special
Assessment,
2021
A,
4%,
5/01/52
................
2,680,000
2,694,205
b
Magnolia
Park
Community
Development
District
,
Special
Assessment,
144A,
2020,
Refunding,
4%,
5/01/31
...................
250,000
268,548
Special
Assessment,
144A,
2020,
Refunding,
4%,
5/01/39
...................
688,000
717,488
Marshall
Creek
Community
Development
District
,
Special
Assessment
,
2015
A
,
Refunding
,
5
%
,
5/01/32
.............................................
1,775,000
1,844,449
Meadow
View
at
Twin
Creeks
Community
Development
District
,
Special
Assessment,
2021,
2.4%,
5/01/26
...............................
360,000
352,359
Special
Assessment,
2021,
3%,
5/01/31
.................................
430,000
412,365
Special
Assessment,
2021,
3.25%,
5/01/41
..............................
1,945,000
1,846,098
Special
Assessment,
2021,
3.75%,
5/01/52
..............................
630,000
601,459
Special
Assessment,
2021,
4%,
5/01/52
.................................
1,000,000
1,013,766
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
104
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
Miami-Dade
County
Expressway
Authority
,
Revenue
,
A
,
5
%
,
7/01/40
.............
$
10,000,000
$
10,259,037
Mirada
Community
Development
District
,
Assessment
Area
4
,
Special
Assessment
,
2021
,
3.25
%
,
5/01/32
...............................................
3,000,000
2,911,189
Mirada
II
Community
Development
District
,
Special
Assessment,
2021,
2.5%,
5/01/26
...............................
500,000
494,327
Special
Assessment,
2021,
3.125%,
5/01/31
.............................
650,000
635,256
Special
Assessment,
2021,
3.5%,
5/01/41
...............................
2,100,000
2,037,014
Special
Assessment,
2021,
4%,
5/01/51
.................................
2,375,000
2,389,408
New
Port
Tampa
Bay
Community
Development
District
,
Special
Assessment,
2021,
2.875%,
5/01/26
.............................
350,000
347,410
Special
Assessment,
2021,
3.5%,
5/01/31
...............................
500,000
493,802
Special
Assessment,
2021,
3.875%,
5/01/41
.............................
1,250,000
1,226,708
Special
Assessment,
2021,
4.125%,
5/01/52
.............................
2,250,000
2,204,203
North
AR-1
Pasco
Community
Development
District
,
Special
Assessment,
2021,
2.625%,
5/01/26
.............................
250,000
246,503
Special
Assessment,
2021,
3.125%,
5/01/31
.............................
400,000
387,795
Special
Assessment,
2021,
3.5%,
5/01/41
...............................
1,285,000
1,237,279
Special
Assessment,
2021,
4%,
5/01/51
.................................
2,735,000
2,741,431
Assessment
Area
2,
Special
Assessment,
2021
A,
2.625%,
5/01/26
............
250,000
244,653
Assessment
Area
2,
Special
Assessment,
2021
A,
3.25%,
5/01/31
.............
275,000
265,294
Assessment
Area
2,
Special
Assessment,
2021
A,
3.55%,
5/01/41
.............
985,000
949,057
Assessment
Area
2,
Special
Assessment,
2021
A,
4%,
5/01/52
................
1,500,000
1,501,076
North
Park
Isle
Community
Development
District
,
Assessment
Area
2,
Special
Assessment,
2021,
2.45%,
11/01/26
..............
265,000
257,391
Assessment
Area
2,
Special
Assessment,
2021,
3%,
11/01/31
................
500,000
475,108
Assessment
Area
2,
Special
Assessment,
2021,
3.375%,
11/01/41
.............
1,500,000
1,425,206
Assessment
Area
2,
Special
Assessment,
2021,
4%,
11/01/51
................
2,500,000
2,515,854
North
Powerline
Road
Community
Development
District
,
Special
Assessment,
2020,
3.125%,
5/01/30
.............................
490,000
484,066
Special
Assessment,
2020,
3.625%,
5/01/40
.............................
1,000,000
990,761
Special
Assessment,
2020,
4%,
5/01/51
.................................
1,500,000
1,514,523
North
River
Ranch
Community
Development
District
,
Special
Assessment,
2020
A-1,
3%,
5/01/25
..............................
590,000
590,765
Special
Assessment,
2020
A-1,
3.5%,
5/01/30
............................
855,000
855,919
Special
Assessment,
2020
A-1,
4%,
5/01/40
..............................
1,150,000
1,157,926
Special
Assessment,
2020
A-1,
4.25%,
5/01/51
...........................
1,960,000
1,976,066
Special
Assessment,
2020
A-2,
4.2%,
5/01/35
............................
1,670,000
1,683,718
Special
Assessment,
2020
A-3,
4.75%,
5/01/40
...........................
2,000,000
2,000,228
b
North
Springs
Improvement
District
,
Special
Assessment
,
144A,
2017-2
,
5
%
,
5/01/48
5,000,000
5,365,842
Northern
Palm
Beach
County
,
Improvement
District
Unit
of
Development
No.
2C,
Special
Assessment,
2014,
5%,
8/01/34
........................................................
2,700,000
2,839,333
Improvement
District
Unit
of
Development
No.
2C,
Special
Assessment,
2014,
5.2%,
8/01/46
........................................................
6,000,000
6,278,597
Improvement
District
Unit
of
Development
No.
2C,
Special
Assessment,
2017,
5%,
8/01/37
........................................................
750,000
829,161
Improvement
District
Unit
of
Development
No.
2C,
Special
Assessment,
2017,
5%,
8/01/46
........................................................
3,000,000
3,271,007
Old
Hickory
Community
Development
District
,
Special
Assessment,
2020,
4%,
6/15/40
.................................
1,300,000
1,342,565
Special
Assessment,
2020,
4%,
6/15/50
.................................
1,955,000
1,993,625
Orange
County
Health
Facilities
Authority
,
Presbyterian
Retirement
Communities,
Inc.
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
8/01/41
............................................
3,800,000
4,120,399
Presbyterian
Retirement
Communities,
Inc.
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
8/01/47
............................................
4,285,000
4,646,293
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
105
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
b
Osceola
Village
Center
Community
Development
District
,
Special
Assessment,
144A,
2021,
2.875%,
5/01/31
.........................
$
180,000
$
170,145
Special
Assessment,
144A,
2021,
3.3%,
5/01/41
..........................
370,000
343,256
Special
Assessment,
144A,
2021,
4%,
5/01/51
............................
405,000
404,289
Palm
Beach
County
Health
Facilities
Authority
,
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
11/15/32
...........................................
1,500,000
1,707,482
e
Federation
CCRC
Operations
Corp.
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
6/01/36
....................................................
2,000,000
2,006,881
e
Federation
CCRC
Operations
Corp.
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
6/01/41
....................................................
2,200,000
2,170,802
e
Federation
CCRC
Operations
Corp.
Obligated
Group,
Revenue,
2022,
Refunding,
4.25%,
6/01/56
..................................................
5,000,000
4,893,656
Palm
Coast
Park
Community
Development
District
,
Spring
Lake
-
Tracts
2
&
3,
Special
Assessment,
2021,
2.8%,
5/01/31
...........
350,000
328,674
Spring
Lake
-
Tracts
2
&
3,
Special
Assessment,
2021,
3.125%,
5/01/41
.........
730,000
665,506
Spring
Lake
-
Tracts
2
&
3,
Special
Assessment,
2021,
4%,
5/01/52
............
1,210,000
1,221,988
Park
East
Community
Development
District
,
Special
Assessment,
2021,
3.15%,
11/01/41
..............................
750,000
692,943
Special
Assessment,
2021,
4%,
11/01/51
................................
2,750,000
2,790,545
Parkview
at
Long
Lake
Ranch
Community
Development
District
,
Special
Assessment,
2020,
3.75%,
5/01/40
..............................
955,000
962,326
Special
Assessment,
2020,
4%,
5/01/51
.................................
800,000
810,546
Parrish
Plantation
Community
Development
District
,
Special
Assessment,
2021,
2.5%,
5/01/26
...............................
255,000
252,503
Special
Assessment,
2021,
3.125%,
5/01/31
.............................
235,000
230,032
Special
Assessment,
2021,
3.5%,
5/01/41
...............................
790,000
767,362
Special
Assessment,
2021,
4%,
5/01/52
.................................
1,370,000
1,380,413
Pelican
Marsh
Community
Development
District
,
Special
Assessment,
2012,
Refunding,
4.875%,
5/01/22
.....................
165,000
165,663
Special
Assessment,
2012,
Refunding,
5.375%,
5/01/31
.....................
1,235,000
1,239,469
b
Pine
Isle
Community
Development
District
,
Special
Assessment,
144A,
2021,
2.375%,
12/15/26
........................
100,000
98,041
Special
Assessment,
144A,
2021,
3%,
12/15/31
...........................
225,000
216,826
Special
Assessment,
144A,
2021,
3.25%,
12/15/41
.........................
1,000,000
945,819
Special
Assessment,
144A,
2021,
4%,
12/15/51
...........................
1,200,000
1,217,443
Pine
Ridge
Plantation
Community
Development
District
,
Special
Assessment
,
2020
A-2
,
Refunding
,
3.75
%
,
5/01/37
.......................................
700,000
706,745
Pinellas
County
Industrial
Development
Authority
,
Drs
Kiran
&
Pallavi
Patel
2017
Foundation
for
Global
Understanding,
Inc.,
Revenue,
2017,
5%,
7/01/39
................................................
2,000,000
2,227,959
Drs
Kiran
&
Pallavi
Patel
2017
Foundation
for
Global
Understanding,
Inc.,
Revenue,
2019,
5%,
7/01/29
................................................
900,000
987,597
Preserve
at
South
Branch
Community
Development
District
,
Special
Assessment,
2021,
3%,
5/01/31
.................................
150,000
146,462
Special
Assessment,
2021,
3.5%,
5/01/41
...............................
750,000
730,068
Special
Assessment,
2021,
4%,
5/01/51
.................................
1,000,000
1,013,785
Quail
Roost
Community
Development
District
,
Expansion
Area,
Special
Assessment,
2021,
2.2%,
12/15/26
.................
200,000
196,861
Expansion
Area,
Special
Assessment,
2021,
2.7%,
12/15/31
.................
200,000
194,442
Expansion
Area,
Special
Assessment,
2021,
3.125%,
12/15/41
................
740,000
708,262
Expansion
Area,
Special
Assessment,
2021,
4%,
12/15/51
...................
2,375,000
2,437,054
Reunion
East
Community
Development
District
,
2021
Assessment
Area,
Special
Assessment,
2021,
2.4%,
5/01/26
.............
500,000
490,048
2021
Assessment
Area,
Special
Assessment,
2021,
2.85%,
5/01/31
............
400,000
385,866
2021
Assessment
Area,
Special
Assessment,
2021,
3.15%,
5/01/41
............
1,455,000
1,394,879
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
106
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
Reunion
East
Community
Development
District,
(continued)
2021
Assessment
Area,
Special
Assessment,
2021,
4%,
5/01/51
..............
$
4,535,000
$
4,647,264
Rhodine
Road
North
Community
Development
District
,
Special
Assessment,
2022,
2.6%,
5/01/27
...............................
125,000
122,622
Special
Assessment,
2022,
3%,
5/01/32
.................................
190,000
183,192
Special
Assessment,
2022,
3.3%,
5/01/42
...............................
490,000
464,739
Special
Assessment,
2022,
4%,
5/01/52
.................................
1,065,000
1,077,392
River
Glen
Community
Development
District
,
Special
Assessment,
2021,
3%,
5/01/31
.................................
350,000
346,666
Special
Assessment,
2021,
3.375%,
5/01/41
.............................
1,000,000
964,146
Special
Assessment,
2021,
4%,
5/01/51
.................................
1,000,000
1,012,993
River
Hall
Community
Development
District
,
Special
Assessment,
2020
A,
3.25%,
5/01/31
.............................
430,000
431,806
Special
Assessment,
2020
A,
3.625%,
5/01/40
............................
1,030,000
1,031,958
Special
Assessment,
2020
A,
3.875%,
5/01/51
............................
2,690,000
2,705,631
Special
Assessment,
2021
A-2,
Refunding,
3%,
5/01/22
.....................
200,000
200,416
Special
Assessment,
2021
A-2,
Refunding,
3%,
5/01/23
.....................
150,000
151,784
Special
Assessment,
2021
A-2,
Refunding,
3%,
5/01/24
.....................
250,000
254,146
Special
Assessment,
2021
A-2,
Refunding,
3%,
5/01/25
.....................
150,000
152,448
Special
Assessment,
2021
A-2,
Refunding,
3%,
5/01/31
.....................
1,000,000
964,038
Special
Assessment,
2021
A-2,
Refunding,
3%,
5/01/36
.....................
1,000,000
932,467
River
Landing
Community
Development
District
,
Special
Assessment,
2020
A,
3%,
5/01/25
...............................
325,000
325,528
Special
Assessment,
2020
A,
3.6%,
5/01/30
..............................
475,000
477,623
Special
Assessment,
2020
A,
4.125%,
5/01/40
............................
850,000
859,073
Special
Assessment,
2020
A,
4.35%,
5/01/51
.............................
1,100,000
1,113,731
Special
Assessment,
2020
B,
4.25%,
11/01/35
............................
1,170,000
1,143,830
River
Place
on
the
St.
Lucie
Community
Development
District
,
Special
Assessment,
2001
A,
7.625%,
5/01/30
............................
1,105,000
1,105,009
d
Special
Assessment,
2001
B,
7.25%,
5/01/10
.............................
35,000
1,750
Rivers
Edge
II
Community
Development
District
,
Special
Assessment,
2021,
3%,
5/01/31
.................................
205,000
197,125
Special
Assessment,
2021,
4%,
5/01/51
.................................
910,000
916,218
b
Rivers
Edge
III
Community
Development
District
,
Special
Assessment,
144A,
2021,
2.4%,
5/01/26
..........................
165,000
162,547
Special
Assessment,
144A,
2021,
3%,
5/01/31
............................
300,000
291,765
Special
Assessment,
144A,
2021,
3.5%,
5/01/41
..........................
775,000
753,830
Special
Assessment,
144A,
2021,
4%,
5/01/51
............................
905,000
913,270
Rivington
Community
Development
District
,
Special
Assessment
,
2020
,
3.75
%
,
5/01/40
1,755,000
1,750,346
Rolling
Hills
Community
Development
District
,
Special
Assessment,
2022
A-1,
4%,
5/01/52
..............................
945,000
943,313
Special
Assessment,
2022
A-2,
Refunding,
3.65%,
5/01/32
...................
1,000,000
991,576
Rustic
Oaks
Community
Development
District
,
Special
Assessment,
2022,
3.2%,
5/01/32
...............................
1,000,000
985,443
Special
Assessment,
2022,
3.45%,
5/01/42
..............................
2,000,000
1,951,571
Special
Assessment,
2022,
4%,
5/01/52
.................................
3,195,000
3,253,732
Saddle
Creek
Preserve
of
Polk
County
Community
Development
District
,
Special
Assessment,
2020,
3%,
6/15/30
.................................
250,000
249,629
Special
Assessment,
2020,
4%,
6/15/40
.................................
610,000
631,767
Special
Assessment,
2020,
4%,
6/15/50
.................................
785,000
801,523
Special
Assessment,
2022,
3.1%,
12/15/32
..............................
300,000
295,387
Special
Assessment,
2022,
3.35%,
12/15/41
.............................
485,000
473,303
Special
Assessment,
2022,
4%,
12/15/51
................................
1,000,000
1,025,541
Sanctuary
Cove
Community
Development
District
,
Special
Assessment,
2021,
2.625%,
5/01/31
.............................
190,000
179,013
Special
Assessment,
2021,
3.125%,
5/01/41
.............................
400,000
366,401
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
107
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
Sanctuary
Cove
Community
Development
District,
(continued)
Special
Assessment,
2021,
4%,
5/01/52
.................................
$
770,000
$
777,629
Sandmine
Road
Community
Development
District
,
b
Assessment
Area
1,
Special
Assessment,
144A,
2020,
3.125%,
5/01/30
.........
300,000
300,497
b
Assessment
Area
1,
Special
Assessment,
144A,
2020,
3.625%,
5/01/40
.........
1,040,000
1,044,805
b
Assessment
Area
1,
Special
Assessment,
144A,
2020,
3.75%,
5/01/50
..........
2,020,000
2,024,593
Assessment
Area
2,
Special
Assessment,
2021,
2.3%,
11/01/26
...............
250,000
244,008
Assessment
Area
2,
Special
Assessment,
2021,
3%,
11/01/31
................
450,000
429,814
Assessment
Area
2,
Special
Assessment,
2021,
3.3%,
11/01/41
...............
1,180,000
1,128,773
Assessment
Area
2,
Special
Assessment,
2021,
4%,
11/01/51
................
750,000
760,807
Sandridge
Community
Development
District
,
Special
Assessment,
2021
A-1,
2.875%,
5/01/26
..........................
500,000
493,124
Special
Assessment,
2021
A-1,
3.4%,
5/01/31
............................
750,000
733,764
Special
Assessment,
2021
A-1,
3.875%,
5/01/41
..........................
740,000
719,490
Special
Assessment,
2021
A-1,
4%,
5/01/51
..............................
735,000
705,600
Special
Assessment,
2021
A-2,
3.875%,
5/01/31
..........................
700,000
685,942
Sarasota
National
Community
Development
District
,
Special
Assessment,
2020,
Refunding,
3.5%,
5/01/31
.......................
1,495,000
1,546,265
Special
Assessment,
2020,
Refunding,
4%,
5/01/39
........................
2,210,000
2,297,356
Sawyers
Landing
Community
Development
District
,
Special
Assessment,
2021,
3.75%,
5/01/31
..............................
1,400,000
1,432,069
Special
Assessment,
2021,
4.125%,
5/01/41
.............................
3,055,000
3,162,220
Special
Assessment,
2021,
4.25%,
5/01/53
..............................
6,015,000
6,208,292
Scenic
Highway
Community
Development
District
,
Special
Assessment,
2020,
3.25%,
5/01/30
..............................
470,000
465,327
Special
Assessment,
2020,
3.75%,
5/01/40
..............................
1,230,000
1,215,570
Special
Assessment,
2020,
4%,
5/01/51
.................................
1,250,000
1,237,193
b
Seminole
County
Industrial
Development
Authority
,
Galileo
School
Foundation,
Inc.
(The),
Revenue,
144A,
2021
A,
4%,
6/15/36
.....
310,000
330,032
Galileo
School
Foundation,
Inc.
(The),
Revenue,
144A,
2021
A,
4%,
6/15/41
.....
425,000
446,873
Galileo
School
Foundation,
Inc.
(The),
Revenue,
144A,
2021
A,
4%,
6/15/51
.....
830,000
861,957
Galileo
School
Foundation,
Inc.
(The),
Revenue,
144A,
2021
A,
4%,
6/15/56
.....
705,000
726,500
Shingle
Creek
at
Bronson
Community
Development
District
,
Special
Assessment,
2021,
3.1%,
6/15/31
...............................
375,000
366,973
Special
Assessment,
2021,
3.5%,
6/15/41
...............................
1,000,000
972,560
Special
Assessment,
2021,
4%,
6/15/51
.................................
1,250,000
1,265,440
Silver
Palms
West
Community
Development
District
,
Special
Assessment,
2022,
2.6%,
6/15/27
...............................
410,000
403,014
Special
Assessment,
2022,
3%,
6/15/32
.................................
765,000
742,491
Special
Assessment,
2022,
3.25%,
6/15/42
..............................
1,750,000
1,672,615
Special
Assessment,
2022,
4%,
6/15/52
.................................
2,170,000
2,210,386
Six
Mile
Creek
Community
Development
District
,
Assessment
Area
2,
Special
Assessment,
2020,
Refunding,
3.125%,
11/01/25
....
285,000
288,337
Assessment
Area
2,
Special
Assessment,
2020,
Refunding,
3.625%,
11/01/31
....
505,000
516,818
Assessment
Area
2,
Special
Assessment,
2020,
Refunding,
4.125%,
11/01/40
....
1,375,000
1,423,472
Assessment
Area
2,
Special
Assessment,
2020,
Refunding,
4.25%,
11/01/50
.....
2,305,000
2,379,948
Assessment
Area
2,
Special
Assessment,
2021,
Refunding,
2.5%,
5/01/26
.......
230,000
225,879
Assessment
Area
2,
Special
Assessment,
2021,
Refunding,
3.1%,
5/01/31
.......
250,000
239,046
Assessment
Area
2,
Special
Assessment,
2021,
Refunding,
3.4%,
5/01/41
.......
750,000
705,741
Assessment
Area
2,
Special
Assessment,
2021,
Refunding,
4%,
5/01/52
........
2,050,000
2,054,597
Assessment
Area
3,
Special
Assessment,
2021,
2.5%,
5/01/26
................
350,000
344,975
Assessment
Area
3,
Special
Assessment,
2021,
3%,
5/01/31
.................
520,000
503,327
Assessment
Area
3,
Special
Assessment,
2021,
3.4%,
5/01/41
................
805,000
757,496
Assessment
Area
3,
Special
Assessment,
2021,
3.5%,
5/01/41
................
1,585,000
1,528,804
Assessment
Area
3,
Special
Assessment,
2021,
4%,
5/01/51
.................
1,200,000
1,204,097
Assessment
Area
3,
Special
Assessment,
2021,
4%,
5/01/52
.................
655,000
656,469
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
108
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
Somerset
Community
Development
District
,
Special
Assessment
,
2005
,
5.3
%
,
5/01/37
$
5,755,000
$
5,760,833
South
Creek
Community
Development
District
,
Assessment
Area
1,
Special
Assessment,
2021,
2.875%,
6/15/31
..............
175,000
168,884
Assessment
Area
1,
Special
Assessment,
2021,
3.25%,
6/15/41
...............
500,000
474,461
Assessment
Area
1,
Special
Assessment,
2021,
4%,
6/15/51
.................
500,000
506,967
Southern
Groves
Community
Development
District
No.
5
,
Special
Assessment,
2021,
2.4%,
5/01/26
...............................
425,000
413,244
Special
Assessment,
2021,
2.8%,
5/01/31
...............................
495,000
469,094
Special
Assessment,
2021,
3.125%,
5/01/41
.............................
1,500,000
1,375,993
Special
Assessment,
2021,
4%,
5/01/48
.................................
940,000
950,754
b
Southshore
Bay
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
144A,
2021
,
3
%
,
5/01/33
..................................
2,735,000
2,577,584
St.
Johns
County
Industrial
Development
Authority
,
Life
Care
Ponte
Vedra
Obligated
Group
,
Revenue
,
2021
A
,
Refunding
,
4
%
,
12/15/46
........................
1,950,000
1,977,355
State
of
Florida
,
GO
,
1999
D
,
Refunding
,
6
%
,
6/01/23
........................
5,000,000
5,317,603
Stellar
North
Community
Development
District
,
Special
Assessment,
2021,
2.45%,
5/01/26
..............................
170,000
165,113
Special
Assessment,
2021,
3%,
5/01/31
.................................
250,000
237,698
Special
Assessment,
2021,
3.2%,
5/01/41
...............................
885,000
818,839
Special
Assessment,
2021,
4%,
5/01/52
.................................
2,225,000
2,252,190
b
Stillwater
Community
Development
District
,
Special
Assessment,
144A,
2021,
2.375%,
6/15/26
.........................
375,000
369,493
Special
Assessment,
144A,
2021,
3%,
6/15/31
............................
325,000
316,992
Special
Assessment,
144A,
2021,
3.5%,
6/15/41
..........................
1,290,000
1,259,827
Special
Assessment,
144A,
2021,
4%,
6/15/51
............................
1,750,000
1,774,384
b
Stonewater
Community
Development
District
,
Special
Assessment,
144A,
2021,
3%,
11/01/32
...........................
250,000
241,111
Special
Assessment,
144A,
2021,
3.3%,
11/01/41
..........................
635,000
605,707
Special
Assessment,
144A,
2021,
4%,
11/01/51
...........................
1,000,000
1,015,625
b
Stoneybrook
South
Community
Development
District
,
Special
Assessment,
144A,
2020,
3%,
12/15/30
...........................
500,000
492,379
Special
Assessment,
144A,
2020,
3.5%,
12/15/40
.........................
1,000,000
984,242
Special
Assessment,
144A,
2020,
3.75%,
12/15/50
.........................
1,500,000
1,481,696
Storey
Drive
Community
Development
District
,
Special
Assessment,
2022,
2.55%,
6/15/27
..............................
200,000
194,443
Special
Assessment,
2022,
3%,
6/15/32
.................................
375,000
356,980
Special
Assessment,
2022,
3.25%,
6/15/42
..............................
900,000
844,189
Special
Assessment,
2022,
4%,
6/15/52
.................................
2,000,000
2,028,590
b
Storey
Park
Community
Development
District
,
Special
Assessment,
144A,
2021,
2.875%,
6/15/31
.........................
230,000
222,858
Special
Assessment,
144A,
2021,
3.3%,
6/15/41
..........................
620,000
593,607
Special
Assessment,
144A,
2021,
4%,
6/15/51
............................
625,000
633,697
Summer
Woods
Community
Development
District
,
Assessment
Area
2,
Special
Assessment,
2021,
3%,
5/01/31
.................
200,000
190,848
Assessment
Area
2,
Special
Assessment,
2021,
3.4%,
5/01/41
................
500,000
478,350
Assessment
Area
2,
Special
Assessment,
2021,
4%,
5/01/51
.................
375,000
375,436
Assessment
Area
3,
Special
Assessment,
2021,
2.5%,
5/01/26
................
195,000
190,498
Assessment
Area
3,
Special
Assessment,
2021,
3.15%,
5/01/31
...............
200,000
192,751
Assessment
Area
3,
Special
Assessment,
2021,
3.45%,
5/01/41
...............
725,000
696,618
Assessment
Area
3,
Special
Assessment,
2021,
4%,
5/01/52
.................
1,000,000
1,000,389
Summerstone
Community
Development
District
,
Special
Assessment,
2020,
3.25%,
5/01/30
..............................
165,000
166,481
Special
Assessment,
2020,
3.75%,
5/01/40
..............................
700,000
711,859
Special
Assessment,
2020,
4%,
5/01/51
.................................
910,000
927,731
b
Special
Assessment,
144A,
2021,
2.75%,
5/01/31
.........................
175,000
168,219
b
Special
Assessment,
144A,
2021,
3.15%,
5/01/41
.........................
700,000
667,868
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
109
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
Summerstone
Community
Development
District,
(continued)
b
Special
Assessment,
144A,
2021,
4%,
5/01/51
............................
$
1,750,000
$
1,787,821
Tamarindo
Community
Development
District
,
Special
Assessment,
2021,
3%,
5/01/31
.................................
185,000
179,303
Special
Assessment,
2021,
3.375%,
5/01/41
.............................
820,000
790,600
Special
Assessment,
2021,
4%,
5/01/51
.................................
680,000
689,887
Tern
Bay
Community
Development
District
,
Special
Assessment,
2022,
3.4%,
6/15/32
...............................
1,650,000
1,660,712
Special
Assessment,
2022,
4%,
6/15/42
.................................
3,600,000
3,719,589
Special
Assessment,
2022,
4%,
6/15/52
.................................
6,500,000
6,631,764
Timber
Creek
Southwest
Community
Development
District
,
Special
Assessment,
2020,
4%,
6/15/40
.................................
1,000,000
1,032,743
Special
Assessment,
2020,
4%,
6/15/50
.................................
2,000,000
2,041,367
Assessment
Area
2,
Special
Assessment,
2021,
2.35%,
12/15/26
..............
400,000
394,987
Assessment
Area
2,
Special
Assessment,
2021,
3%,
12/15/31
................
750,000
733,936
Assessment
Area
2,
Special
Assessment,
2021,
3.3%,
12/15/41
...............
2,175,000
2,086,721
Assessment
Area
2,
Special
Assessment,
2021,
4%,
12/15/51
................
4,085,000
4,150,896
Tohoqua
Community
Development
District
,
Special
Assessment,
2021,
2.875%,
5/01/31
.............................
215,000
208,232
Special
Assessment,
2021,
3.375%,
5/01/41
.............................
810,000
775,733
Special
Assessment,
2021,
4%,
5/01/51
.................................
1,785,000
1,799,959
Tolomato
Community
Development
District
,
Special
Assessment,
2022
B,
Refunding,
3%,
5/01/32
......................
1,500,000
1,462,637
Special
Assessment,
2022
C,
Refunding,
3.2%,
5/01/32
.....................
1,500,000
1,469,296
Assessment
Area
One,
Special
Assessment,
2022-1,
3.3%,
5/01/32
............
515,000
508,844
Assessment
Area
One,
Special
Assessment,
2022-1,
4%,
5/01/52
.............
1,970,000
1,999,555
Assessment
Area
Two,
Special
Assessment,
2022-2,
3.3%,
5/01/32
............
195,000
192,011
Assessment
Area
Two,
Special
Assessment,
2022-2,
4%,
5/01/51
.............
665,000
674,977
b
Towne
Park
Community
Development
District
,
Special
Assessment,
144A,
2020,
3.125%,
5/01/30
.........................
410,000
406,485
Special
Assessment,
144A,
2020,
3.625%,
5/01/40
.........................
1,075,000
1,069,294
Special
Assessment,
144A,
2020,
4%,
5/01/51
............................
1,000,000
1,012,014
Tradition
Community
Development
District
No.
9
,
Special
Assessment,
2021,
2.3%,
5/01/26
...............................
390,000
382,680
Special
Assessment,
2021,
2.7%,
5/01/31
...............................
445,000
428,469
Special
Assessment,
2021,
4%,
5/01/52
.................................
1,400,000
1,419,272
b
Trevesta
Community
Development
District
,
Special
Assessment,
144A,
2020,
3.25%,
5/01/30
.........................
235,000
234,158
Special
Assessment,
144A,
2020,
3.75%,
5/01/40
.........................
880,000
881,195
Special
Assessment,
144A,
2020,
4%,
5/01/51
............................
1,750,000
1,764,442
Triple
Creek
Community
Development
District
,
b
Special
Assessment,
144A,
2021,
2.375%,
11/01/26
........................
185,000
180,278
b
Special
Assessment,
144A,
2021,
2.875%,
11/01/31
........................
450,000
429,778
Special
Assessment,
2021,
3%,
11/01/31
................................
250,000
243,426
b
Special
Assessment,
144A,
2021,
3.125%,
11/01/41
........................
1,190,000
1,102,088
Special
Assessment,
2021,
3.5%,
11/01/41
...............................
740,000
717,411
Special
Assessment,
2021,
4%,
11/01/50
................................
750,000
759,581
b
Special
Assessment,
144A,
2021,
4%,
11/01/51
...........................
750,000
757,752
Tuckers
Pointe
Community
Development
District
,
Special
Assessment,
2022,
3%,
5/01/27
.................................
310,000
310,181
Special
Assessment,
2022,
3.375%,
5/01/32
.............................
565,000
565,787
Special
Assessment,
2022,
3.625%,
5/01/32
.............................
4,500,000
4,471,460
Special
Assessment,
2022,
4%,
5/01/42
.................................
1,505,000
1,528,849
Special
Assessment,
2022,
4%,
5/01/52
.................................
1,500,000
1,509,916
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
110
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
b
Two
Rivers
North
Community
Development
District
,
Special
Assessment
,
144A,
2022
,
3
%
,
1/15/23
......................................................
$
2,300,000
$
2,290,522
Two
Rivers
West
Community
Development
District
,
Special
Assessment
,
2022
,
3
%
,
1/15/23
.........................................................
2,000,000
1,991,078
b
Union
Park
East
Community
Development
District
,
Assessment
Area
3,
Special
Assessment,
144A,
2021,
2.95%,
5/01/31
..........
125,000
120,495
Assessment
Area
3,
Special
Assessment,
144A,
2021,
3.35%,
5/01/41
..........
325,000
307,823
Assessment
Area
3,
Special
Assessment,
144A,
2021,
4%,
5/01/51
............
450,000
447,677
V-Dana
Community
Development
District
,
Special
Assessment,
2021,
3.125%,
5/01/31
.............................
400,000
390,156
Special
Assessment,
2021,
3.625%,
5/01/41
.............................
1,250,000
1,222,870
Special
Assessment,
2021,
4%,
5/01/52
.................................
1,500,000
1,509,100
b
Assessment
Area
1,
Special
Assessment,
144A,
2020,
3.5%,
5/01/31
...........
375,000
378,822
b
Assessment
Area
1,
Special
Assessment,
144A,
2020,
4%,
5/01/40
............
1,775,000
1,820,164
b
Assessment
Area
1,
Special
Assessment,
144A,
2020,
4%,
5/01/51
............
3,500,000
3,548,245
b
Veranda
Community
Development
District
II
,
Special
Assessment,
144A,
2021,
Refunding,
2.5%,
5/01/26
..................
435,000
431,716
Special
Assessment,
144A,
2021,
Refunding,
3.1%,
5/01/31
..................
415,000
408,148
Special
Assessment,
144A,
2021,
Refunding,
3.6%,
5/01/41
..................
1,020,000
1,004,671
Special
Assessment,
144A,
2021,
Refunding,
4%,
5/01/51
...................
1,500,000
1,514,861
Verano
No.
3
Community
Development
District
,
Phase
1
Assessment
Area,
Special
Assessment,
2021,
3.375%,
5/01/41
.........
750,000
737,634
Phase
1
Assessment
Area,
Special
Assessment,
2021,
4%,
5/01/51
............
1,000,000
1,020,754
Viera
Stewardship
District
,
Special
Assessment,
2021,
2.3%,
5/01/26
...............................
500,000
488,495
Special
Assessment,
2021,
2.8%,
5/01/31
...............................
800,000
765,506
Special
Assessment,
2021,
3.125%,
5/01/41
.............................
1,750,000
1,627,256
Special
Assessment,
2021,
4%,
5/01/53
.................................
1,715,000
1,737,606
Village
Community
Development
District
No.
10
,
Special
Assessment,
2012,
5%,
5/01/32
.................................
4,850,000
4,875,283
Special
Assessment,
2012,
5.125%,
5/01/43
.............................
7,600,000
7,642,044
Special
Assessment,
2014,
5.75%,
5/01/31
..............................
1,600,000
1,670,151
Special
Assessment,
2014,
6%,
5/01/44
.................................
6,600,000
6,911,397
Village
Community
Development
District
No.
13
,
b
Special
Assessment,
144A,
2020,
3.5%,
5/01/51
..........................
16,990,000
17,063,985
Special
Assessment,
2021,
2.85%,
5/01/36
..............................
1,750,000
1,694,242
Special
Assessment,
2021,
3%,
5/01/41
.................................
2,500,000
2,394,037
Special
Assessment,
2021,
3.25%,
5/01/52
..............................
6,500,000
6,221,942
Village
Community
Development
District
No.
6
,
Special
Assessment
,
2013
,
Refunding
,
4
%
,
5/01/35
......................................................
3,265,000
3,274,598
Village
Community
Development
District
No.
9
,
Special
Assessment,
2012,
Refunding,
5%,
5/01/22
........................
190,000
190,734
Special
Assessment,
2012,
Refunding,
5.25%,
5/01/31
......................
1,695,000
1,702,193
Special
Assessment,
2012,
Refunding,
5.5%,
5/01/42
.......................
1,710,000
1,717,445
Villages
of
Glen
Creek
Community
Development
District
,
Special
Assessment,
2022,
Refunding,
2.7%,
5/01/27
.......................
135,000
131,351
Special
Assessment,
2022,
Refunding,
3.15%,
5/01/32
......................
210,000
200,573
Special
Assessment,
2022,
Refunding,
3.45%,
5/01/42
......................
550,000
525,280
Special
Assessment,
2022,
Refunding,
4%,
5/01/52
........................
1,205,000
1,210,955
Villamar
Community
Development
District
,
Special
Assessment,
2020,
3.2%,
5/01/30
...............................
240,000
239,656
Special
Assessment,
2020,
3.75%,
5/01/40
..............................
655,000
659,103
Special
Assessment,
2020,
4%,
5/01/51
.................................
1,000,000
1,011,797
b,c
Phase
4
Project,
Special
Assessment,
144A,
2022,
3.25%,
5/01/27
............
175,000
175,153
b,c
Phase
4
Project,
Special
Assessment,
144A,
2022,
3.625%,
5/01/32
...........
250,000
250,519
b,c
Phase
4
Project,
Special
Assessment,
144A,
2022,
4%,
5/01/42
...............
670,000
671,638
b,c
Phase
4
Project,
Special
Assessment,
144A,
2022,
4.125%,
5/01/52
...........
500,000
501,213
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
111
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
West
Port
Community
Development
District
,
b
Special
Assessment,
144A,
2020,
3.25%,
5/01/31
.........................
$
410,000
$
404,226
b
Special
Assessment,
144A,
2020,
3.625%,
5/01/41
.........................
1,085,000
1,068,729
b
Special
Assessment,
144A,
2020,
4%,
5/01/51
............................
1,545,000
1,557,930
Special
Assessment,
2021,
2.4%,
5/01/26
...............................
250,000
245,994
Special
Assessment,
2021,
3%,
5/01/31
.................................
570,000
551,418
Special
Assessment,
2021,
3.4%,
5/01/41
...............................
1,470,000
1,405,894
Special
Assessment,
2021,
4%,
5/01/51
.................................
1,250,000
1,253,757
West
Villages
Improvement
District
,
Unit
of
Development
No.
7,
Special
Assessment,
2021,
2.5%,
5/01/26
..........
250,000
247,516
Unit
of
Development
No.
7,
Special
Assessment,
2021,
3.125%,
5/01/31
........
200,000
196,391
Unit
of
Development
No.
7,
Special
Assessment,
2021,
3.5%,
5/01/41
..........
800,000
779,220
Unit
of
Development
No.
7,
Special
Assessment,
2021,
4%,
5/01/51
............
1,050,000
1,061,212
Unit
of
Development
No.
8,
Special
Assessment,
2021,
2.5%,
5/01/26
..........
200,000
198,042
Unit
of
Development
No.
8,
Special
Assessment,
2021,
3.125%,
5/01/31
........
525,000
515,526
Unit
of
Development
No.
8,
Special
Assessment,
2021,
3.5%,
5/01/41
..........
1,000,000
974,026
Unit
of
Development
No.
8,
Special
Assessment,
2021,
4%,
5/01/51
............
1,855,000
1,874,807
Westside
Haines
City
Community
Development
District
,
Special
Assessment,
2021,
2.5%,
5/01/26
...............................
250,000
245,424
Special
Assessment,
2021,
3%,
5/01/31
.................................
350,000
337,706
Special
Assessment,
2021,
3.25%,
5/01/41
..............................
1,000,000
943,850
Special
Assessment,
2021,
4%,
5/01/52
.................................
1,250,000
1,263,191
Wind
Meadows
South
Community
Development
District
,
Assessment
Area
1,
Special
Assessment,
2021,
2.4%,
5/01/26
................
220,000
213,785
Assessment
Area
1,
Special
Assessment,
2021,
2.95%,
5/01/31
...............
250,000
237,398
Assessment
Area
1,
Special
Assessment,
2021,
3.35%,
5/01/41
...............
940,000
879,758
Assessment
Area
1,
Special
Assessment,
2021,
4%,
5/01/52
.................
1,500,000
1,497,323
Windward
Community
Development
District
,
Special
Assessment,
2020
A-1,
3%,
5/01/25
..............................
100,000
100,446
Special
Assessment,
2020
A-1,
3.65%,
5/01/30
...........................
130,000
131,715
Special
Assessment,
2020
A-1,
4.25%,
5/01/40
...........................
630,000
644,819
Special
Assessment,
2020
A-1,
4.5%,
5/01/51
............................
495,000
507,558
Special
Assessment,
2020
A-2,
4.4%,
11/01/35
...........................
1,700,000
1,743,901
Wiregrass
II
Community
Development
District
,
Special
Assessment,
2020,
3.125%,
5/01/30
.............................
645,000
644,291
Special
Assessment,
2020,
3.7%,
5/01/40
...............................
1,680,000
1,690,548
Special
Assessment,
2020,
3.875%,
5/01/50
.............................
1,960,000
1,964,689
Zephyr
Lakes
Community
Development
District
,
Assessment
Area
2,
Special
Assessment,
2021,
2.5%,
5/01/26
................
230,000
225,702
Assessment
Area
2,
Special
Assessment,
2021,
3%,
5/01/31
.................
165,000
157,224
Assessment
Area
2,
Special
Assessment,
2021,
3.375%,
5/01/41
..............
700,000
655,278
Assessment
Area
2,
Special
Assessment,
2021,
4%,
5/01/51
.................
1,000,000
998,246
957,928,622
Georgia
1.1%
d
Baldwin
County
Hospital
Authority
,
Oconee
Regional
Medical
Center
Obligated
Group,
Revenue,
1998,
5.375%,
12/01/28
.......................................................
1,470,000
15
Oconee
Regional
Medical
Center
Obligated
Group,
Revenue,
2016,
6.5%,
4/30/17
.
480,367
37,228
b
Development
Authority
of
Cobb
County
(The)
,
Presbyterian
Village
Austell,
Inc.,
Revenue,
144A,
2019
A,
Refunding,
5%,
12/01/39
1,825,000
1,923,053
Presbyterian
Village
Austell,
Inc.,
Revenue,
144A,
2019
A,
Refunding,
5%,
12/01/49
10,760,000
11,122,114
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
112
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Georgia
(continued)
b
Development
Authority
of
Rockdale
County
,
AHPC
Terraces
at
Fieldstone
LLC
,
Revenue
,
144A,
2021
B
,
4.5
%
,
12/01/36
................................
$
10,835,000
$
10,166,080
Forsyth
County
Hospital
Authority
,
Georgia
Baptist
Healthcare
System
Obligated
Group
,
Revenue
,
1998
,
ETM,
6.375
%
,
10/01/28
...........................
6,090,000
7,188,209
b
George
L
Smith
II
Congress
Center
Authority
,
Signia
Hotel
Management
LLC,
Revenue,
Second
Tier,
144A,
2021
B,
5%,
1/01/36
2,500,000
2,612,530
Signia
Hotel
Management
LLC,
Revenue,
Second
Tier,
144A,
2021
B,
5%,
1/01/54
10,000,000
10,198,483
Main
Street
Natural
Gas,
Inc.
,
Revenue,
2007
A,
5.5%,
9/15/25
......................................
5,000,000
5,623,967
Revenue,
2007
A,
5.5%,
9/15/27
......................................
4,000,000
4,714,034
Revenue,
2007
A,
5.5%,
9/15/28
......................................
10,000,000
12,001,096
Revenue,
2019
A,
5%,
5/15/49
........................................
6,500,000
8,762,185
74,348,994
Idaho
0.2%
Idaho
Housing
&
Finance
Association
,
Revenue
,
2010
A
,
7
%
,
2/01/36
............
13,305,000
13,344,618
Illinois
3.8%
Chicago
Board
of
Education
,
GO,
2022
A,
5%,
12/01/43
...........................................
7,515,000
8,661,574
GO,
2022
A,
5%,
12/01/47
...........................................
12,000,000
13,720,216
City
of
Belleville
,
Sales
Tax,
Tax
Allocation,
2021
B,
Refunding,
3.25%,
7/01/29
.................
825,000
817,798
Sales
Tax,
Tax
Allocation,
2021
B,
Refunding,
3.75%,
7/01/41
.................
1,000,000
976,508
Illinois
Finance
Authority
,
d
2017
IAVF
Windy
City
Obligated
Group,
Revenue,
2017
A-1,
4.375%,
12/01/42
...
883,103
7,241
d
2018
Blue
Island
LLC,
Revenue,
2018
A-1,
5%,
12/01/43
....................
3,000,000
6,000
d
2018
Blue
Island
LLC,
Revenue,
2018
A-1,
5%,
12/01/53
....................
3,075,000
6,150
b
McKinley
Foundation
at
University
of
Illinois
(The),
Revenue,
144A,
2021
A,
Refunding,
5.125%,
11/01/55
.......................................
13,560,000
14,014,161
b
McKinley
Foundation
at
University
of
Illinois
(The),
Revenue,
144A,
2021
B,
7%,
11/01/37
.......................................................
4,190,000
4,629,309
Noble
Network
of
Charter
Schools,
Revenue,
2015,
Refunding,
5%,
9/01/25
......
2,255,000
2,390,168
Noble
Network
of
Charter
Schools,
Revenue,
2015,
Refunding,
5%,
9/01/32
......
3,750,000
3,997,868
OSF
Healthcare
System
Obligated
Group,
Revenue,
2015
A,
Refunding,
5%,
11/15/45
.......................................................
15,750,000
17,368,606
Rosalind
Franklin
University
of
Medicine
and
Science,
Revenue,
A,
Refunding,
5%,
8/01/47
........................................................
1,525,000
1,699,062
Rosalind
Franklin
University
of
Medicine
and
Science,
Revenue,
C,
5%,
8/01/46
...
1,900,000
2,117,572
Westminster
Village,
Inc.
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
5/01/48
........................................................
4,030,000
3,848,670
Westminster
Village,
Inc.
Obligated
Group,
Revenue,
2018
A,
Refunding,
5.25%,
5/01/48
........................................................
10,000,000
10,014,893
Westminster
Village,
Inc.
Obligated
Group,
Revenue,
2018
A,
Refunding,
5.5%,
5/01/53
........................................................
8,310,000
8,387,076
Metropolitan
Pier
&
Exposition
Authority
,
Revenue,
1996,
ETM,
7%,
7/01/26
.....................................
4,720,000
5,348,891
Revenue,
2002
A,
NATL
Insured,
Zero
Cpn.,
6/15/35
.......................
15,000,000
9,783,849
Revenue,
2002
A,
NATL
Insured,
Zero
Cpn.,
6/15/36
.......................
4,925,000
3,082,965
Revenue,
2002
A,
NATL
Insured,
Zero
Cpn.,
12/15/37
......................
13,650,000
8,007,401
Revenue,
2010
B-1,
Refunding,
AGMC
Insured,
Zero
Cpn.,
6/15/45
............
18,100,000
7,754,044
Revenue,
2020
B,
Refunding,
5%,
6/15/42
...............................
5,000,000
5,655,060
State
of
Illinois
,
GO,
2016,
Refunding,
5%,
2/01/26
.....................................
4,000,000
4,461,526
GO,
2017
A,
4.25%,
12/01/40
.........................................
1,850,000
1,968,659
GO,
2017
C,
5%,
11/01/29
...........................................
10,330,000
11,808,846
GO,
2017
D,
3.25%,
11/01/26
.........................................
2,500,000
2,633,301
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
113
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Illinois
(continued)
State
of
Illinois,
(continued)
GO,
2017
D,
5%,
11/01/26
...........................................
$
5,200,000
$
5,880,056
GO,
2017
D,
5%,
11/01/27
...........................................
6,445,000
7,412,248
GO,
2017
D,
5%,
11/01/28
...........................................
8,545,000
9,790,707
GO,
2019
B,
4%,
11/01/34
...........................................
2,400,000
2,597,335
GO,
2019
C,
4%,
11/01/40
...........................................
1,490,000
1,589,188
GO,
2019
C,
4%,
11/01/43
...........................................
2,515,000
2,668,269
GO,
2020,
5.5%,
5/01/30
............................................
7,650,000
9,240,832
GO,
2020,
5.5%,
5/01/39
............................................
14,175,000
16,931,179
GO,
2020,
5.75%,
5/01/45
...........................................
7,420,000
8,904,989
GO,
2020
B,
4%,
10/01/34
...........................................
2,000,000
2,170,685
GO,
2020
C,
4%,
10/01/37
...........................................
5,400,000
5,835,466
GO,
2020
C,
4%,
10/01/38
...........................................
5,250,000
5,665,097
GO,
2020
C,
4%,
10/01/39
...........................................
2,545,000
2,740,220
GO,
2021
A,
5%,
3/01/46
............................................
7,000,000
8,098,029
b
Upper
Illinois
River
Valley
Development
Authority
,
2018
IAVF
Timber
Oaks
&
Prairie
View
Obligated
Group
,
Revenue
,
144A,
2020
C
,
Refunding
,
5
%
,
12/01/50
.......
10,750,000
10,912,292
Village
of
Hillside
,
Mannheim
Redevelopment
Project
Area
,
Tax
Allocation
,
2018
,
Refunding
,
5
%
,
1/01/30
.............................................
2,690,000
2,871,470
b
Village
of
Lincolnwood
,
North
Lincoln
Redevelopment
Project
Area
,
COP
,
144A,
2021
A
,
4.82
%
,
1/01/41
.................................................
3,035,000
2,893,853
Village
of
Villa
Park
,
Garden
Station
Redevelopment
Area
,
Tax
Allocation
,
2021
,
Zero
Cpn.,
12/31/38
....................................................
1,715,000
1,405,962
260,775,291
Indiana
0.5%
City
of
Anderson
,
Sweet
Galilee
at
the
Wigwam
LLC
,
Revenue
,
2020
A
,
5.375
%
,
1/01/40
.........................................................
2,740,000
2,751,434
b
City
of
Goshen
,
Green
Oaks
of
Goshen
LLC
,
Revenue
,
144A,
2021
A
,
5
%
,
8/01/41
..
4,065,000
3,719,860
b
City
of
Jeffersonville
,
Vivera
Senior
Living
of
Columbus
LLC
,
Revenue
,
144A,
2020
A
,
5.25
%
,
11/01/40
...................................................
4,500,000
4,405,360
b
City
of
Valparaiso
,
Green
Oaks
of
Valparaiso
LLC
,
Revenue
,
144A,
2021
,
5.375
%
,
12/01/41
........................................................
3,650,000
3,363,968
Indiana
Finance
Authority
,
Greencroft
Goshen
Obligated
Group,
Revenue,
2013
A,
Refunding,
7%,
11/15/43
..
5,000,000
5,473,170
Ohio
Valley
Electric
Corp.,
Revenue,
2012
A,
5%,
6/01/32
...................
10,000,000
10,067,686
b
Indiana
Housing
&
Community
Development
Authority
,
Vita
of
Marion
LLC
,
Revenue
,
144A,
2021
A
,
5.25
%
,
4/01/41
........................................
4,750,000
4,753,179
34,534,657
Iowa
0.1%
Iowa
Finance
Authority
,
Northcrest
Obligated
Group
,
Revenue
,
2018
A
,
5
%
,
3/01/48
.
7,500,000
7,929,636
Kansas
0.1%
City
of
Derby
,
Revenue
,
2020
,
3.9
%
,
3/01/37
...............................
1,625,000
1,640,114
City
of
Manhattan
,
Meadowlark
Hills
Retirement
Community
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
6/01/36
............................................
1,000,000
1,050,468
Meadowlark
Hills
Retirement
Community
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
6/01/46
............................................
1,150,000
1,181,298
Wyandotte
County-Kansas
City
Unified
Government
,
Revenue
,
2018
,
4.5
%
,
6/01/40
.
1,705,000
1,724,512
5,596,392
Kentucky
0.4%
Kentucky
Economic
Development
Finance
Authority
,
Owensboro
Health,
Inc.
Obligated
Group
,
Revenue
,
2017
A
,
Refunding
,
5.25
%
,
6/01/41
.......................
10,000,000
11,454,141
Kentucky
Public
Transportation
Infrastructure
Authority
,
Revenue,
First
Tier,
2013
C,
Zero
Cpn.,
7/01/39
...........................
10,000,000
11,963,207
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
114
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Kentucky
(continued)
Kentucky
Public
Transportation
Infrastructure
Authority,
(continued)
Revenue,
First
Tier,
2013
C,
Zero
Cpn.,
7/01/43
...........................
$
5,000,000
$
5,971,062
29,388,410
Louisiana
1.2%
Calcasieu
Parish
Memorial
Hospital
Service
District
,
Southwest
Louisiana
Healthcare
System
Obligated
Group
,
Revenue
,
2019
,
Refunding
,
5
%
,
12/01/39
............
2,055,000
2,317,586
Lakeshore
Villages
Master
Community
Development
District
,
Special
Assessment,
2021,
2.375%,
6/01/26
.............................
450,000
438,502
Special
Assessment,
2021,
2.875%,
6/01/31
.............................
695,000
660,137
Special
Assessment,
2021,
3.2%,
6/01/41
...............................
2,730,000
2,458,823
Special
Assessment,
2021,
4%,
6/01/51
.................................
2,035,000
2,014,106
b
Louisiana
Local
Government
Environmental
Facilities
&
Community
Development
Authority
,
GOMESA,
Revenue,
144A,
2018,
5.375%,
11/01/38
........................
2,410,000
2,699,196
Invest
in
Americas
Veterans
Foundation
Louisiana,
Inc.,
Revenue,
144A,
2020
A,
Refunding,
4%,
12/01/40
...........................................
2,970,000
2,974,416
Invest
in
Americas
Veterans
Foundation
Louisiana,
Inc.,
Revenue,
144A,
2020
A,
Refunding,
4.25%,
12/01/50
........................................
5,665,000
5,690,051
Parish
of
Jefferson,
Revenue,
144A,
2019,
4%,
11/01/44
....................
2,650,000
2,732,893
Parish
of
Lafourche,
Revenue,
144A,
2019,
3.95%,
11/01/43
.................
4,475,000
4,609,175
Parish
of
St.
Martin,
Revenue,
144A,
2019,
4.4%,
11/01/44
...................
3,240,000
3,405,950
Parish
of
Vermilion,
Revenue,
144A,
2019,
4.625%,
11/01/38
.................
1,960,000
2,108,064
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
C,
5.5%,
10/01/61
.
6,300,000
5,896,205
Provident
Group
-
ULM
Properties
LLC,
Revenue,
144A,
2019
A,
5%,
7/01/54
....
4,000,000
3,974,326
Terrebonne
Parish
Consolidated
Government,
Revenue,
144A,
2018,
5.5%,
11/01/39
1,790,000
2,014,645
Louisiana
Public
Facilities
Authority
,
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2016,
Pre-Refunded,
5%,
5/15/47
........................................................
60,000
68,287
b
Provident
Group
-
HSC
Properties,
Inc.,
Revenue,
144A,
2020
A-1,
5.375%,
1/01/40
5,000,000
5,514,543
b
Provident
Group
-
HSC
Properties,
Inc.,
Revenue,
144A,
2020
A-1,
5.5%,
1/01/50
.
4,500,000
4,930,688
b
Provident
Group
-
HSC
Properties,
Inc.,
Revenue,
144A,
2020
A-2,
7%,
1/01/57
...
10,000,000
10,903,134
Parish
of
Beauregard
,
OfficeMax,
Inc.
,
Revenue
,
2002
,
Refunding
,
6.8
%
,
2/01/27
...
13,990,000
14,004,394
St.
Tammany
Parish
Finance
Authority
,
Christwood
Obligated
Group,
Revenue,
2014,
Refunding,
5.25%,
11/15/29
.......
1,200,000
1,276,933
Christwood
Obligated
Group,
Revenue,
2014,
Refunding,
5.25%,
11/15/37
.......
1,650,000
1,736,833
82,428,887
Maryland
0.3%
City
of
Baltimore
,
Harbor
Point
Special
Taxing
District,
Revenue,
2016,
Refunding,
5%,
6/01/36
.....
1,250,000
1,339,144
Harbor
Point
Special
Taxing
District,
Revenue,
2016,
Refunding,
5.125%,
6/01/43
.
5,500,000
5,847,358
County
of
Frederick
,
Oakdale-Lake
Linganore
Development
District,
Special
Tax,
2019,
Refunding,
3.25%,
7/01/29
........................................................
750,000
766,341
Oakdale-Lake
Linganore
Development
District,
Special
Tax,
2019,
Refunding,
3.75%,
7/01/39
........................................................
1,410,000
1,432,567
b
Technology
Park
Project
TIF
Development
District,
Special
Tax,
144A,
2020
B,
Refunding,
4.625%,
7/01/43
........................................
3,260,000
3,675,444
Urbana
Community
Development
Authority,
Special
Tax,
2020
B,
Refunding,
4%,
7/01/40
........................................................
375,000
400,455
Urbana
Community
Development
Authority,
Special
Tax,
2020
C,
4%,
7/01/50
....
4,000,000
4,262,388
Maryland
Economic
Development
Corp.
,
Tax
Allocation,
2020,
4%,
9/01/40
......................................
2,000,000
2,116,689
Tax
Allocation,
2020,
4%,
9/01/50
......................................
2,000,000
2,093,422
Morgan
State
University,
Revenue,
2020,
4.25%,
7/01/50
....................
500,000
540,768
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
115
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Maryland
(continued)
Maryland
Economic
Development
Corp.,
(continued)
Morgan
State
University,
Revenue,
2020,
5%,
7/01/56
......................
$
1,000,000
$
1,143,247
23,617,823
Massachusetts
0.3%
b
Massachusetts
Development
Finance
Agency
,
Linden
Ponds
Obligated
Group,
Revenue,
144A,
2018,
5%,
11/15/38
...........
3,000,000
3,371,973
Linden
Ponds
Obligated
Group,
Revenue,
144A,
2018,
5.125%,
11/15/46
........
5,000,000
5,605,670
North
Hill
Communities,
Inc.
Obligated
Group,
Revenue,
144A,
2013
A,
Pre-
Refunded,
6.25%,
11/15/28
.........................................
1,473,000
1,583,862
North
Hill
Communities,
Inc.
Obligated
Group,
Revenue,
144A,
2013
A,
Pre-
Refunded,
6.25%,
11/15/33
.........................................
2,000,000
2,170,491
North
Hill
Communities,
Inc.
Obligated
Group,
Revenue,
144A,
2013
A,
Pre-
Refunded,
6.5%,
11/15/43
..........................................
4,125,000
4,490,297
Massachusetts
Educational
Financing
Authority
,
Revenue
,
2013
K
,
5.25
%
,
7/01/29
..
2,280,000
2,307,396
19,529,689
Michigan
2.2%
City
of
Detroit
,
GO,
2021
A,
5%,
4/01/31
............................................
480,000
574,061
GO,
2021
A,
5%,
4/01/33
............................................
770,000
917,847
GO,
2021
A,
5%,
4/01/35
............................................
955,000
1,134,232
GO,
2021
A,
5%,
4/01/37
............................................
875,000
1,035,514
GO,
2021
A,
4%,
4/01/41
............................................
600,000
646,770
Great
Lakes
Water
Authority
Sewage
Disposal
System,
Revenue,
Second
Lien,
2001
B,
NATL
Insured,
5.5%,
7/01/29
.....................................
5,000,000
5,830,110
Great
Lakes
Water
Authority
Sewage
Disposal
System,
Revenue,
Second
Lien,
2006
B,
NATL
Insured,
5%,
7/01/36
.......................................
15,000
15,053
City
of
Ecorse
,
GO
,
2011
,
6.5
%
,
11/01/35
.................................
3,415,000
3,429,080
Detroit
City
School
District
,
GO
,
2001
A
,
AGMC
Insured
,
6
%
,
5/01/29
............
15,900,000
18,794,420
Kalamazoo
Economic
Development
Corp.
,
b
Friendship
Village
of
Kalamazoo
Obligated
Group,
Revenue,
144A,
2021,
Refunding,
5%,
8/15/31
....................................................
1,000,000
1,095,248
b
Friendship
Village
of
Kalamazoo
Obligated
Group,
Revenue,
144A,
2021,
Refunding,
5%,
8/15/41
....................................................
1,235,000
1,317,362
b
Friendship
Village
of
Kalamazoo
Obligated
Group,
Revenue,
144A,
2021,
Refunding,
5%,
8/15/51
....................................................
1,505,000
1,583,702
Heritage
Community
of
Kalamazoo
Obligated
Group,
Revenue,
2020
A,
5%,
5/15/43
1,120,000
1,221,640
Heritage
Community
of
Kalamazoo
Obligated
Group,
Revenue,
2020
A,
5%,
5/15/55
8,860,000
9,584,463
Michigan
Finance
Authority
,
Detroit
Public
Lighting
Authority
Utility
Users
Tax,
Revenue,
2014
B,
5%,
7/01/39
..
5,600,000
5,851,463
Detroit
Public
Lighting
Authority
Utility
Users
Tax,
Revenue,
2014
B,
5%,
7/01/44
..
5,000,000
5,204,285
Great
Lakes
Water
Authority
Sewage
Disposal
System,
Revenue,
Senior
Lien,
2014
C-3,
AGMC
Insured,
5%,
7/01/32
....................................
10,000,000
10,825,969
Great
Lakes
Water
Authority
Sewage
Disposal
System,
Revenue,
Senior
Lien,
2014
C-3,
AGMC
Insured,
5%,
7/01/33
....................................
3,000,000
3,244,909
Great
Lakes
Water
Authority
Sewage
Disposal
System,
Revenue,
Senior
Lien,
2014
C-6,
Refunding,
5%,
7/01/33
........................................
10,000,000
10,816,364
Great
Lakes
Water
Authority
Water
Supply
System,
Revenue,
D-1,
Refunding,
AGMC
Insured,
5%,
7/01/37
..............................................
5,000,000
5,396,199
Great
Lakes
Water
Authority
Water
Supply
System,
Revenue,
D-4,
Refunding,
5%,
7/01/29
........................................................
11,000,000
11,905,924
Great
Lakes
Water
Authority
Water
Supply
System,
Revenue,
D-4,
Refunding,
5%,
7/01/30
........................................................
9,000,000
9,741,210
Great
Lakes
Water
Authority
Water
Supply
System,
Revenue,
D-4,
Refunding,
5%,
7/01/34
........................................................
10,000,000
10,811,566
b
Thomas
M
Cooley
Law
School,
Revenue,
144A,
2014,
Refunding,
6%,
7/01/24
...
1,800,000
1,856,025
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
116
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Michigan
(continued)
Michigan
Finance
Authority,
(continued)
b
Thomas
M
Cooley
Law
School,
Revenue,
144A,
2014,
Refunding,
6.75%,
7/01/44
.
$
5,505,000
$
5,783,292
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
A,
1,
Refunding,
4%,
6/01/49
...
3,000,000
3,233,989
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
B-2,
2,
Refunding,
Zero
Cpn.,
6/01/65
........................................................
110,000,000
14,009,083
b
Michigan
Strategic
Fund
,
Friendship
Village
of
Kalamazoo
Obligated
Group,
Revenue,
144A,
2021,
Refunding,
5%,
8/15/31
....................................................
815,000
892,627
Friendship
Village
of
Kalamazoo
Obligated
Group,
Revenue,
144A,
2021,
Refunding,
5%,
8/15/41
....................................................
895,000
954,687
Friendship
Village
of
Kalamazoo
Obligated
Group,
Revenue,
144A,
2021,
Refunding,
5%,
8/15/51
....................................................
1,380,000
1,452,166
Michigan
Tobacco
Settlement
Finance
Authority
,
Michigan
Finance
Authority
Tobacco
Settlement
,
Revenue
,
2007
B
,
Zero
Cpn.,
6/01/52
.........................
26,990,000
3,131,442
152,290,702
Minnesota
0.2%
City
of
Apple
Valley
,
PHS
Apple
Valley
Senior
Housing,
Inc.,
Revenue,
2021,
4%,
9/01/36
...........
200,000
206,461
PHS
Apple
Valley
Senior
Housing,
Inc.,
Revenue,
2021,
4%,
9/01/41
...........
290,000
295,661
PHS
Apple
Valley
Senior
Housing,
Inc.,
Revenue,
2021,
4%,
9/01/51
...........
500,000
500,714
PHS
Apple
Valley
Senior
Housing,
Inc.,
Revenue,
2021,
4%,
9/01/61
...........
870,000
856,401
City
of
Minneapolis
,
Ecumen
Mill
City
Quarter
LLC,
Revenue,
2015,
5.25%,
11/01/45
..............
2,800,000
2,819,898
Ecumen
Mill
City
Quarter
LLC,
Revenue,
2015,
5.375%,
11/01/50
..............
1,000,000
1,000,555
Duluth
Economic
Development
Authority
,
Benedictine
Health
System
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
7/01/31
........................................................
1,500,000
1,576,804
Benedictine
Health
System
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
7/01/36
........................................................
1,500,000
1,554,947
Benedictine
Health
System
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
7/01/41
........................................................
930,000
954,952
Housing
&
Redevelopment
Authority
of
The
City
of
St.
Paul
Minnesota
,
Episcopal
Homes
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
11/01/33
...
200,000
200,108
Episcopal
Homes
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
11/01/35
...
350,000
346,712
Episcopal
Homes
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
11/01/36
...
100,000
98,468
Episcopal
Homes
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
11/01/42
...
1,260,000
1,201,879
11,613,560
Mississippi
1.2%
County
of
Lowndes
,
International
Paper
Co.
,
Revenue
,
1992
B
,
Refunding
,
6.7
%
,
4/01/22
.........................................................
18,875,000
18,964,943
b
Mississippi
Development
Bank
,
County
of
Hancock,
Revenue,
144A,
2019,
4.55%,
11/01/39
..................
2,250,000
2,405,808
Magnolia
Regional
Health
Center,
Revenue,
144A,
2021,
Refunding,
4%,
10/01/34
900,000
982,905
Magnolia
Regional
Health
Center,
Revenue,
144A,
2021,
Refunding,
4%,
10/01/35
800,000
872,721
Magnolia
Regional
Health
Center,
Revenue,
144A,
2021,
Refunding,
4%,
10/01/36
850,000
926,165
Magnolia
Regional
Health
Center,
Revenue,
144A,
2021,
Refunding,
4%,
10/01/41
3,000,000
3,244,979
Mississippi
Home
Corp.
,
b
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A-5,
4.5%,
6/01/62
.
7,000,000
6,142,547
b
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
C-5,
5.1%,
6/01/62
8,000,000
7,094,704
Patriot
Services
Group
Pascagoula
Portfolio
II
Obligated
Group,
Revenue,
2021
D-8,
4.65%,
6/01/62
..................................................
5,515,000
4,978,261
Mississippi
Hospital
Equipment
&
Facilities
Authority
,
Baptist
Memorial
Health
Care
Obligated
Group
,
Revenue
,
A
,
5
%
,
9/01/41
...............................
30,000,000
34,126,380
79,739,413
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
117
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Missouri
0.2%
Cape
Girardeau
County
Industrial
Development
Authority
,
SoutheastHEALTH
Obligated
Group,
Revenue,
2016
A,
Refunding,
6%,
3/01/33
...
$
4,435,000
$
4,743,887
SoutheastHEALTH
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
3/01/29
...
250,000
284,869
City
of
Maryland
Heights
,
Tax
Allocation
,
2020
,
4.125
%
,
11/01/38
...............
2,500,000
2,520,340
Kirkwood
Industrial
Development
Authority
,
Ashfield
Active
Living
&
Wellness
Communities,
Inc.
Obligated
Group,
Revenue,
2017
A,
Refunding,
5.25%,
5/15/42
...................................
1,000,000
1,059,093
Ashfield
Active
Living
&
Wellness
Communities,
Inc.
Obligated
Group,
Revenue,
2017
A,
Refunding,
5.25%,
5/15/50
...................................
3,500,000
3,679,949
Stoddard
County
Industrial
Development
Authority
,
SoutheastHEALTH
Obligated
Group
,
Revenue
,
2016
B
,
Refunding
,
6
%
,
3/01/37
.........................
3,875,000
4,142,561
16,430,699
Montana
0.1%
Montana
Facility
Finance
Authority
,
Kalispell
Regional
Medical
Center
Obligated
Group
,
Revenue
,
2018
B
,
Refunding
,
5
%
,
7/01/48
...............................
5,765,000
6,505,909
Nevada
1.1%
City
of
Henderson
,
Local
Improvement
District
No.
T-16,
Special
Assessment,
2005,
5.1%,
3/01/22
...
890,000
890,000
Local
Improvement
District
No.
T-16,
Special
Assessment,
2005,
5.125%,
3/01/25
.
935,000
868,982
Local
Improvement
District
No.
T-18,
Special
Assessment,
2016,
Refunding,
4%,
9/01/32
........................................................
1,750,000
1,817,360
Local
Improvement
District
No.
T-18,
Special
Assessment,
2016,
Refunding,
4%,
9/01/35
........................................................
2,500,000
2,578,658
City
of
Las
Vegas
,
Special
Improvement
District
No.
610,
Special
Assessment,
2018,
5%,
6/01/48
....
8,165,000
8,842,875
Special
Improvement
District
No.
611,
Special
Assessment,
2020,
4%,
6/01/33
....
185,000
197,167
Special
Improvement
District
No.
611,
Special
Assessment,
2020,
4%,
6/01/34
....
185,000
196,198
Special
Improvement
District
No.
611,
Special
Assessment,
2020,
4%,
6/01/35
....
185,000
195,509
Special
Improvement
District
No.
611,
Special
Assessment,
2020,
4%,
6/01/40
....
450,000
470,956
Special
Improvement
District
No.
611,
Special
Assessment,
2020,
4.125%,
6/01/50
1,150,000
1,195,470
Special
Improvement
District
No.
612
Skye
Hills,
Special
Assessment,
2020,
3.5%,
6/01/35
........................................................
210,000
210,476
Special
Improvement
District
No.
612
Skye
Hills,
Special
Assessment,
2020,
4%,
6/01/50
........................................................
1,000,000
1,010,466
Special
Improvement
District
No.
812,
Special
Assessment,
2015,
5%,
12/01/27
...
1,400,000
1,519,697
Special
Improvement
District
No.
812,
Special
Assessment,
2015,
5%,
12/01/30
...
1,620,000
1,738,870
Special
Improvement
District
No.
812,
Special
Assessment,
2015,
5%,
12/01/35
...
1,025,000
1,092,082
Special
Improvement
District
No.
814,
Special
Assessment,
2019,
4%,
6/01/39
....
445,000
467,908
Special
Improvement
District
No.
814,
Special
Assessment,
2019,
4%,
6/01/44
....
745,000
774,878
Special
Improvement
District
No.
815,
Special
Assessment,
2020,
4.75%,
12/01/40
1,000,000
1,106,927
Special
Improvement
District
No.
816,
Special
Assessment,
2021,
2.75%,
6/01/33
.
520,000
493,199
Special
Improvement
District
No.
816,
Special
Assessment,
2021,
2.75%,
6/01/36
.
830,000
769,453
Special
Improvement
District
No.
816,
Special
Assessment,
2021,
3%,
6/01/41
....
650,000
600,178
Special
Improvement
District
No.
816,
Special
Assessment,
2021,
3.125%,
6/01/51
1,425,000
1,290,758
b
City
of
Reno
,
Sales
Tax
,
Revenue
,
144A,
2018
C
,
Refunding
,
Zero
Cpn.,
7/01/58
....
18,000,000
2,891,315
County
of
Clark
,
Special
Improvement
District
No.
128,
Special
Assessment,
2001-2007,
5%,
2/01/26
1,060,000
1,071,127
Special
Improvement
District
No.
128,
Special
Assessment,
2001-2007,
5.05%,
2/01/31
........................................................
1,010,000
1,018,559
Special
Improvement
District
No.
159,
Special
Assessment,
2015,
5%,
8/01/35
....
2,165,000
2,297,054
Henderson
Local
Improvement
Districts
,
City
of
Henderson
Local
Improvement
District
No.
T-21
Black
Mountain
Ranch,
Special
Assessment,
2022,
3%,
9/01/36
...............................
315,000
288,211
City
of
Henderson
Local
Improvement
District
No.
T-21
Black
Mountain
Ranch,
Special
Assessment,
2022,
3.5%,
9/01/45
..............................
750,000
692,800
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
118
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Nevada
(continued)
Henderson
Local
Improvement
Districts,
(continued)
City
of
Henderson
Local
Improvement
District
No.
T-21
Black
Mountain
Ranch,
Special
Assessment,
2022,
4%,
9/01/51
...............................
$
500,000
$
501,177
b
State
of
Nevada
Department
of
Business
&
Industry
,
Fulcrum
Sierra
Biofuels
LLC,
Revenue,
144A,
2017,
5.875%,
12/15/27
..........
10,467,202
11,434,295
Fulcrum
Sierra
Biofuels
LLC,
Revenue,
144A,
2017,
6.25%,
12/15/37
...........
9,000,000
9,361,352
Somerset
Academy
NLV
Building
1
/
Sky
Pointe
/
Stephanie
/
Losee
Campuses,
Revenue,
144A,
2018
A,
5%,
12/15/38
................................
1,000,000
1,075,859
Somerset
Academy
NLV
Building
1
/
Sky
Pointe
/
Stephanie
/
Losee
Campuses,
Revenue,
144A,
2018
A,
5%,
12/15/48
................................
1,500,000
1,593,833
Tahoe-Douglas
Visitors
Authority
,
Revenue,
2020,
5%,
7/01/33
.........................................
3,190,000
3,590,902
Revenue,
2020,
5%,
7/01/40
.........................................
3,225,000
3,595,991
Revenue,
2020,
5%,
7/01/45
.........................................
3,250,000
3,586,216
Revenue,
2020,
5%,
7/01/51
.........................................
4,250,000
4,667,828
75,994,586
New
Hampshire
0.2%
New
Hampshire
Business
Finance
Authority
,
Caritas
Acquisitions
VII
LLC,
Revenue,
2020
A,
3.75%,
8/15/30
...............
100,000
102,545
Caritas
Acquisitions
VII
LLC,
Revenue,
2020
A,
4.125%,
8/15/40
..............
2,545,000
2,615,356
Caritas
Acquisitions
VII
LLC,
Revenue,
2020
A,
4.25%,
8/15/46
...............
2,860,000
2,933,739
Caritas
Acquisitions
VII
LLC,
Revenue,
2020
A,
4.5%,
8/15/55
................
5,940,000
6,152,793
11,804,433
New
Jersey
3.6%
New
Jersey
Economic
Development
Authority
,
New
Jersey
Transit
Corp.,
Revenue,
2020
A,
5%,
11/01/44
...................
7,800,000
8,940,003
Provident
Group-Kean
Properties
LLC,
Revenue,
2017
A,
5%,
7/01/32
..........
500,000
540,429
Provident
Group-Kean
Properties
LLC,
Revenue,
2017
A,
5%,
7/01/37
..........
2,150,000
2,315,858
Provident
Group-Kean
Properties
LLC,
Revenue,
2017
A,
5%,
7/01/47
..........
2,200,000
2,344,382
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2018
EEE,
4.625%,
6/15/48
........................................................
1,000,000
1,103,311
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2018
EEE,
5%,
6/15/48
10,000,000
11,309,310
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2019
LLL,
4%,
6/15/44
3,300,000
3,537,053
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
AAA,
5%,
6/15/35
....
3,450,000
3,898,925
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
AAA,
5%,
6/15/41
....
4,550,000
5,093,773
State
of
New
Jersey
Division
of
Property
Management
&
Construction,
Revenue,
2018
C,
5%,
6/15/34
..............................................
1,020,000
1,167,014
State
of
New
Jersey
Division
of
Property
Management
&
Construction,
Revenue,
2018
C,
5%,
6/15/35
..............................................
1,100,000
1,258,251
United
Airlines,
Inc.,
Revenue,
1999,
5.125%,
9/15/23
......................
10,510,000
10,775,865
United
Airlines,
Inc.,
Revenue,
1999,
5.25%,
9/15/29
.......................
25,000,000
25,615,218
United
Airlines,
Inc.,
Revenue,
2003,
5.5%,
6/01/33
........................
16,480,000
17,344,134
b
White
Horse
HMT
Urban
Renewal
LLC,
Revenue,
144A,
2020,
5%,
1/01/40
......
3,000,000
2,883,407
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue,
2008
A,
Zero
Cpn.,
12/15/38
..................................
46,750,000
26,706,190
Revenue,
2009
A,
Zero
Cpn.,
12/15/39
..................................
42,425,000
23,213,776
Revenue,
2014
AA,
5%,
6/15/38
.......................................
5,060,000
5,430,678
Revenue,
2014
AA,
5%,
6/15/44
.......................................
9,335,000
9,987,706
Revenue,
2015
AA,
5.25%,
6/15/41
....................................
2,500,000
2,759,198
Revenue,
2018
A,
Refunding,
5%,
12/15/35
..............................
1,800,000
2,077,354
Revenue,
2019
A,
Refunding,
4%,
12/15/39
..............................
1,500,000
1,621,248
Revenue,
2019
AA,
5%,
6/15/46
.......................................
2,500,000
2,832,176
Revenue,
2019
BB,
4%,
6/15/44
.......................................
1,000,000
1,067,018
Revenue,
2019
BB,
5%,
6/15/44
.......................................
3,050,000
3,466,001
Revenue,
2019
BB,
5%,
6/15/50
.......................................
670,000
757,210
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
119
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
New
Jersey
(continued)
New
Jersey
Transportation
Trust
Fund
Authority,
(continued)
c
Revenue,
2022
AA,
Refunding,
5%,
6/15/37
..............................
$
9,500,000
$
11,322,469
Tobacco
Settlement
Financing
Corp.
,
Revenue,
2018
A,
Refunding,
5%,
6/01/46
...............................
9,500,000
10,672,456
Revenue,
2018
A,
Refunding,
5.25%,
6/01/46
.............................
18,000,000
20,532,800
Revenue,
2018
B,
Refunding,
5%,
6/01/46
...............................
25,000,000
27,858,100
248,431,313
New
Mexico
0.2%
Lower
Petroglyphs
Public
Improvement
District
,
Special
Tax,
2018,
Refunding,
5%,
10/01/33
..............................
500,000
529,385
Special
Tax,
2018,
Refunding,
5%,
10/01/38
..............................
450,000
472,005
Special
Tax,
2018,
Refunding,
5%,
10/01/48
..............................
1,205,000
1,256,995
New
Mexico
Hospital
Equipment
Loan
Council
,
Haverland
Carter
Lifestyle
Obligated
Group
,
Revenue
,
2012
,
Refunding
,
5
%
,
7/01/42
...........................
5,000,000
5,071,282
b,c
Winrock
Town
Center
Tax
Increment
Development
District
No.
1
,
Tax
Allocation,
Senior
Lien,
144A,
2022,
Refunding,
4%,
5/01/33
..............
1,000,000
991,970
Tax
Allocation,
Senior
Lien,
144A,
2022,
Refunding,
4.25%,
5/01/40
............
2,750,000
2,725,834
11,047,471
New
York
6.3%
Buffalo
&
Erie
County
Industrial
Land
Development
Corp.
,
D'Youville
College
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
11/01/45
......................................
2,000,000
2,146,209
Metropolitan
Transportation
Authority
,
Revenue,
2013
D,
5%,
11/15/38
.......................................
14,040,000
14,769,521
Revenue,
2013
E,
5%,
11/15/33
.......................................
10,000,000
10,533,422
f
Revenue,
2015
A-2,
Mandatory
Put,
5%,
5/15/30
..........................
1,000,000
1,198,291
Revenue,
2015
D-1,
Refunding,
5%,
11/15/32
............................
1,250,000
1,375,613
Revenue,
2016
A-1,
5.25%,
11/15/56
...................................
5,000,000
5,574,073
Revenue,
2017
A-2,
Refunding,
5%,
11/15/26
.............................
1,000,000
1,142,347
Revenue,
2017
C-1,
Refunding,
5%,
11/15/34
............................
7,500,000
8,624,342
Revenue,
2020
A-1,
5%,
11/15/47
.....................................
24,300,000
28,090,637
Revenue,
2020
A-1,
5%,
11/15/49
.....................................
2,500,000
2,884,653
Revenue,
2020
C-1,
4.75%,
11/15/45
...................................
2,950,000
3,349,238
Revenue,
2020
C-1,
5%,
11/15/50
.....................................
42,795,000
49,378,133
Revenue,
2020
D,
5%,
11/15/44
.......................................
33,000,000
38,608,621
Revenue,
2020
D,
4%,
11/15/50
.......................................
40,000,000
42,857,956
New
York
City
Housing
Development
Corp.
,
FC
8
Spruce
Street
Residential
LLC
,
Revenue
,
2014
,
F
,
Refunding
,
4.5
%
,
2/15/48
.............................
9,825,000
9,958,729
New
York
Liberty
Development
Corp.
,
b
3
World
Trade
Center
LLC,
Revenue,
144A,
2014,
2,
Refunding,
5.375%,
11/15/40
.
15,000,000
16,213,763
Goldman
Sachs
Headquarters
LLC,
Revenue,
2005,
Refunding,
5.25%,
10/01/35
..
65,000,000
84,810,537
New
York
Transportation
Development
Corp.
,
American
Airlines,
Inc.,
Revenue,
2020,
Refunding,
5.25%,
8/01/31
............
11,265,000
12,778,526
American
Airlines,
Inc.,
Revenue,
2020,
Refunding,
5.375%,
8/01/36
...........
14,950,000
17,621,245
American
Airlines,
Inc.,
Revenue,
2021,
Refunding,
2.25%,
8/01/26
............
1,930,000
1,925,954
American
Airlines,
Inc.,
Revenue,
2021,
Refunding,
3%,
8/01/31
...............
4,500,000
4,585,184
Delta
Air
Lines,
Inc.,
Revenue,
2020,
5%,
10/01/35
.........................
6,500,000
7,600,564
Delta
Air
Lines,
Inc.,
Revenue,
2020,
5%,
10/01/40
.........................
6,000,000
6,920,987
Laguardia
Gateway
Partners
LLC,
Revenue,
2016
A,
5%,
7/01/46
.............
41,785,000
44,593,750
b
Rockland
Tobacco
Asset
Securitization
Corp.
,
Revenue
,
144A,
2005
A
,
Zero
Cpn.,
8/15/45
.........................................................
61,000,000
15,695,855
433,238,150
North
Carolina
0.1%
North
Carolina
Medical
Care
Commission
,
Galloway
Ridge
Obligated
Group,
Revenue,
2014
A,
Refunding,
5.25%,
1/01/41
...
2,720,000
2,808,443
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
120
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
North
Carolina
(continued)
North
Carolina
Medical
Care
Commission,
(continued)
Maryfield,
Inc.
Obligated
Group,
Revenue,
2015,
Refunding,
5%,
10/01/30
.......
$
2,790,000
$
2,913,369
Maryfield,
Inc.
Obligated
Group,
Revenue,
2015,
Refunding,
5%,
10/01/35
.......
1,000,000
1,039,183
Maryfield,
Inc.
Obligated
Group,
Revenue,
2020
A,
5%,
10/01/45
..............
1,000,000
1,079,893
Maryfield,
Inc.
Obligated
Group,
Revenue,
2020
A,
5%,
10/01/50
..............
1,500,000
1,615,894
9,456,782
North
Dakota
0.4%
County
of
Burleigh
,
University
of
Mary,
Revenue,
2016,
5.1%,
4/15/36
.........................
2,800,000
2,890,008
University
of
Mary,
Revenue,
2016,
5.2%,
4/15/46
.........................
5,430,000
5,573,248
b
County
of
Grand
Forks
,
Red
River
Biorefinery
LLC,
Revenue,
144A,
2021
A,
6.625%,
12/15/31
..........
2,875,000
2,777,466
Red
River
Biorefinery
LLC,
Revenue,
144A,
2021
A,
7%,
12/15/43
.............
13,900,000
13,106,454
24,347,176
Ohio
2.5%
Buckeye
Tobacco
Settlement
Financing
Authority
,
Revenue,
Senior
Lien,
2020
A-2,
1,
Refunding,
3%,
6/01/48
..................
25,130,000
22,622,297
Revenue,
Senior
Lien,
2020
B-2,
2,
Refunding,
5%,
6/01/55
..................
14,200,000
15,469,395
City
of
Centerville
,
Graceworks
Lutheran
Services
Obligated
Group
,
Revenue
,
2017
,
Refunding
,
5.25
%
,
11/01/50
..........................................
5,000,000
5,290,307
Cleveland-Cuyahoga
County
Port
Authority
,
b
Flats
East
Bank
TIF
District,
Tax
Allocation,
144A,
2021
B,
Refunding,
4.5%,
12/01/55
1,500,000
1,527,422
b
Flats
East
Bank
TIF
District,
Tax
Allocation,
Senior
Lien,
144A,
2021
A,
Refunding,
4%,
12/01/55
...................................................
1,250,000
1,258,229
Playhouse
Square
Foundation,
Revenue,
2018,
Refunding,
5.25%,
12/01/38
.....
700,000
785,526
Playhouse
Square
Foundation,
Revenue,
2018,
Refunding,
5.5%,
12/01/43
......
700,000
788,375
County
of
Fairfield
,
Fairfield
Medical
Center
Obligated
Group
,
Revenue
,
2013
,
Refunding
,
5
%
,
6/15/43
.............................................
10,000,000
10,229,440
County
of
Franklin
,
Wesley
Communities
Obligated
Group,
Revenue,
2020,
Refunding,
5.25%,
11/15/40
2,910,000
3,202,707
Wesley
Communities
Obligated
Group,
Revenue,
2020,
Refunding,
5.25%,
11/15/55
8,800,000
9,566,043
Franklin
County
Convention
Facilities
Authority
,
Revenue
,
2019
,
5
%
,
12/01/51
......
5,000,000
5,409,009
Ohio
Higher
Educational
Facility
Commission
,
Judson
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
12/01/42
...........
1,360,000
1,529,940
Judson
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
12/01/45
...........
1,205,000
1,348,662
Judson
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
12/01/50
...........
2,570,000
2,870,286
Ohio
Turnpike
&
Infrastructure
Commission
,
Revenue,
Junior
Lien
,
2013
A-4
,
Zero
Cpn.,
2/15/35
.....................................................
35,000,000
42,388,986
Southeastern
Ohio
Port
Authority
,
Marietta
Area
Health
Care,
Inc.
Obligated
Group,
Revenue,
2012,
Refunding,
6%,
12/01/42
.......................................................
14,000,000
14,309,405
Marietta
Area
Health
Care,
Inc.
Obligated
Group,
Revenue,
2015,
Refunding,
5%,
12/01/35
.......................................................
1,000,000
1,046,447
Marietta
Area
Health
Care,
Inc.
Obligated
Group,
Revenue,
2015,
Refunding,
5%,
12/01/43
.......................................................
1,000,000
1,039,401
Marietta
Area
Health
Care,
Inc.
Obligated
Group,
Revenue,
2015,
Refunding,
5.5%,
12/01/43
.......................................................
1,300,000
1,376,857
State
of
Ohio
,
b
Aultman
Health
Foundation
Obligated
Group,
Revenue,
144A,
2018,
Refunding,
5%,
12/01/38
.......................................................
5,000,000
5,207,655
b
Aultman
Health
Foundation
Obligated
Group,
Revenue,
144A,
2018,
Refunding,
5%,
12/01/48
.......................................................
15,195,000
15,630,180
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
121
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Ohio
(continued)
State
of
Ohio,
(continued)
University
Hospitals
Health
System,
Inc.
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
1/15/46
............................................
$
6,000,000
$
6,661,897
169,558,466
Oklahoma
0.2%
Tulsa
County
Industrial
Authority
,
Montereau
Obligated
Group,
Revenue,
2017,
Refunding,
5.25%,
11/15/37
.......
1,000,000
1,103,980
Montereau
Obligated
Group,
Revenue,
2017,
Refunding,
5.25%,
11/15/45
.......
10,280,000
11,249,523
12,353,503
Oregon
0.7%
Clackamas
County
Hospital
Facility
Authority
,
Rose
Villa,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5.125%,
11/15/40
.
500,000
535,490
Rose
Villa,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5.25%,
11/15/50
..
1,250,000
1,337,325
Rose
Villa,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5.375%,
11/15/55
.
1,500,000
1,608,514
County
of
Yamhill
,
Linfield
University
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
10/01/45
...
9,285,000
10,807,379
Hospital
Facilities
Authority
of
Multnomah
County
Oregon
,
Mirabella
at
South
Waterfront,
Revenue,
2014
A,
Refunding,
5.4%,
10/01/44
.....
3,000,000
3,146,193
Mirabella
at
South
Waterfront,
Revenue,
2014
A,
Refunding,
5.5%,
10/01/49
.....
5,500,000
5,771,772
Polk
County
Hospital
Facility
Authority
,
Dallas
Mennonite
Retirement
Community
Obligated
Group
,
Revenue
,
2020
A
,
5.125
%
,
7/01/55
.......................
3,500,000
3,515,130
Salem
Hospital
Facility
Authority
,
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2012,
Refunding,
ETM,
5%,
5/15/22
215,000
216,871
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2012,
Refunding,
5.75%,
5/15/27
..
1,000,000
1,010,531
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2012,
Refunding,
5.625%,
5/15/32
.
1,000,000
1,010,279
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2012,
Refunding,
6%,
5/15/42
....
3,100,000
3,134,151
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2012,
Refunding,
6%,
5/15/47
....
2,000,000
2,022,033
Yamhill
County
Hospital
Authority
,
Friendsview
Manor
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
11/15/51
..
4,325,000
4,579,935
Friendsview
Manor
Obligated
Group,
Revenue,
2021
A,
Refunding,
5%,
11/15/36
..
1,220,000
1,392,254
Friendsview
Manor
Obligated
Group,
Revenue,
2021
A,
Refunding,
5%,
11/15/46
..
1,540,000
1,719,402
Friendsview
Manor
Obligated
Group,
Revenue,
2021
A,
Refunding,
5%,
11/15/51
..
1,100,000
1,224,621
Friendsview
Manor
Obligated
Group,
Revenue,
2021
A,
Refunding,
5%,
11/15/56
..
1,940,000
2,144,960
45,176,840
Pennsylvania
1.9%
b
Allentown
Neighborhood
Improvement
Zone
Development
Authority
,
Revenue,
144A,
2017,
Refunding,
5%,
5/01/32
............................
11,975,000
13,361,054
Revenue,
144A,
2018,
5%,
5/01/42
....................................
3,245,000
3,629,868
Revenue,
144A,
2018,
5.375%,
5/01/42
.................................
5,000,000
5,658,708
Bucks
County
Industrial
Development
Authority
,
Grand
View
Hospital/Sellersville
Obligated
Group,
Revenue,
2021,
4%,
7/01/46
...
1,500,000
1,618,568
Grand
View
Hospital/Sellersville
Obligated
Group,
Revenue,
2021,
5%,
7/01/54
...
1,500,000
1,756,955
Chester
County
Industrial
Development
Authority
,
b
Borough
of
Phoenixville
Steelpointe
Neighborhood
Improvement
District,
Special
Assessment,
144A,
2020,
4.75%,
3/01/50
..............................
4,250,000
4,328,496
Renaissance
Academy
Charter
School,
Revenue,
2014,
5%,
10/01/34
..........
1,500,000
1,610,565
Renaissance
Academy
Charter
School,
Revenue,
2014,
5%,
10/01/39
..........
3,325,000
3,559,927
Renaissance
Academy
Charter
School,
Revenue,
2014,
5%,
10/01/44
..........
1,945,000
2,075,524
b
Woodlands
at
Greystone
Neighborhood
Improvement
District,
Special
Assessment,
144A,
2018,
5%,
3/01/38
...........................................
425,000
465,716
b
Woodlands
at
Greystone
Neighborhood
Improvement
District,
Special
Assessment,
144A,
2018,
5.125%,
3/01/48
.......................................
1,000,000
1,094,049
Dallas
Area
Municipal
Authority
,
Misericordia
University,
Revenue,
2019,
Refunding,
5%,
5/01/39
..............
1,100,000
1,232,548
Misericordia
University,
Revenue,
2019,
Refunding,
5%,
5/01/48
..............
4,000,000
4,417,978
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
122
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Pennsylvania
(continued)
Franklin
County
Industrial
Development
Authority
,
Menno-Haven,
Inc.
Obligated
Group,
Revenue,
2018,
Refunding,
5%,
12/01/38
...
$
1,000,000
$
1,079,278
Menno-Haven,
Inc.
Obligated
Group,
Revenue,
2018,
Refunding,
5%,
12/01/43
...
1,200,000
1,287,628
Menno-Haven,
Inc.
Obligated
Group,
Revenue,
2018,
Refunding,
5%,
12/01/48
...
4,600,000
4,917,395
Menno-Haven,
Inc.
Obligated
Group,
Revenue,
2018,
Refunding,
5%,
12/01/53
...
3,050,000
3,254,886
Menno-Haven,
Inc.
Obligated
Group,
Revenue,
2019,
5%,
12/01/54
............
1,000,000
1,066,812
Lancaster
County
Hospital
Authority
,
Brethren
Village
Obligated
Group,
Revenue,
2017,
Refunding,
5.125%,
7/01/37
...
1,000,000
1,079,358
Brethren
Village
Obligated
Group,
Revenue,
2017,
Refunding,
5.25%,
7/01/41
....
3,500,000
3,786,480
Lehigh
County
Industrial
Development
Authority
,
Seven
Generations
Charter
School,
Revenue,
2021
A,
4%,
5/01/31
............
680,000
717,690
Seven
Generations
Charter
School,
Revenue,
2021
A,
4%,
5/01/51
............
2,385,000
2,409,759
Montgomery
County
Industrial
Development
Authority
,
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
11/15/36
...........................................
6,710,000
7,586,482
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020
C,
5%,
11/15/45
.......................................................
1,000,000
1,156,941
Pennsylvania
Turnpike
Commission
,
Revenue,
2009
C,
AGMC
Insured,
6.25%,
6/01/33
.........................
5,000,000
5,954,533
Revenue,
B-2,
Zero
Cpn.,
12/01/37
....................................
20,000,000
20,506,860
Revenue,
B-2,
Zero
Cpn.,
12/01/40
....................................
25,075,000
25,639,443
Philadelphia
Authority
for
Industrial
Development
,
Evangelical
Services
for
the
Aging
Obligated
Group,
Revenue,
A,
Refunding,
5%,
7/01/49
........................................................
3,000,000
3,116,293
Philadelphia
Electrical
&
Technology
Charter
High
School,
Revenue,
2021
A,
4%,
6/01/41
........................................................
750,000
778,773
Philadelphia
Electrical
&
Technology
Charter
High
School,
Revenue,
2021
A,
4%,
6/01/51
........................................................
800,000
817,355
Philadelphia
Electrical
&
Technology
Charter
High
School,
Revenue,
2021
A,
4%,
6/01/56
........................................................
850,000
865,105
130,831,027
South
Carolina
0.3%
South
Carolina
Jobs-Economic
Development
Authority
,
South
Carolina
Episcopal
Home
at
Still
Hopes
Obligated
Group,
Revenue,
2017,
5%,
4/01/52
........................................................
1,750,000
1,859,020
South
Carolina
Episcopal
Home
at
Still
Hopes
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
4/01/48
............................................
3,500,000
3,705,704
South
Carolina
Episcopal
Home
at
Still
Hopes
Obligated
Group,
Revenue,
2018
A,
Refunding,
5.25%,
4/01/53
.........................................
11,000,000
11,694,331
17,259,055
South
Dakota
0.2%
City
of
Sioux
Falls
,
Dow
Rummel
Village,
Revenue,
2016,
Refunding,
5%,
11/01/46
...............
11,110,000
11,345,372
Dow
Rummel
Village,
Revenue,
2017,
5%,
11/01/42
........................
3,000,000
3,176,057
14,521,429
Tennessee
1.1%
Johnson
City
Health
&
Educational
Facilities
Board
,
Mountain
States
Health
Alliance
Obligated
Group,
Revenue,
2000
A,
Refunding,
NATL
Insured,
Zero
Cpn.,
7/01/27
....................................
19,365,000
17,103,306
Mountain
States
Health
Alliance
Obligated
Group,
Revenue,
2000
A,
Refunding,
NATL
Insured,
Zero
Cpn.,
7/01/28
....................................
19,400,000
16,606,146
Mountain
States
Health
Alliance
Obligated
Group,
Revenue,
2000
A,
Refunding,
NATL
Insured,
Zero
Cpn.,
7/01/29
....................................
19,365,000
16,036,218
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
123
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Tennessee
(continued)
Johnson
City
Health
&
Educational
Facilities
Board,
(continued)
Mountain
States
Health
Alliance
Obligated
Group,
Revenue,
2000
A,
Refunding,
NATL
Insured,
Zero
Cpn.,
7/01/30
....................................
$
19,370,000
$
15,493,887
Metropolitan
Government
Nashville
&
Davidson
County
Health
&
Educational
Facilities
Board
,
Vanderbilt
University
Medical
Center
Obligated
Group
,
Revenue
,
2016
A
,
5
%
,
7/01/40
.........................................................
10,000,000
11,194,848
b
Nashville
Metropolitan
Development
&
Housing
Agency
,
Tax
Allocation
,
144A,
2018
,
5.125
%
,
6/01/36
...................................................
900,000
989,329
77,423,734
Texas
8.1%
Cedar
Bayou
Navigation
District
,
Special
Assessment
,
2020
,
6
%
,
9/15/51
.........
7,500,000
7,805,729
Central
Texas
Regional
Mobility
Authority
,
Revenue,
2010,
Zero
Cpn.,
1/01/35
....................................
3,000,000
2,077,091
Revenue,
2010,
Zero
Cpn.,
1/01/37
....................................
2,500,000
1,612,802
Revenue,
2010,
Zero
Cpn.,
1/01/38
....................................
2,405,000
1,493,202
Revenue,
2010,
Zero
Cpn.,
1/01/39
....................................
2,545,000
1,524,248
b
City
of
Anna
,
Sherley
Tract
Public
Improvement
District
No.
2,
Special
Assessment,
144A,
2021,
3.75%,
9/15/31
..................................................
300,000
280,711
Sherley
Tract
Public
Improvement
District
No.
2,
Special
Assessment,
144A,
2021,
4.5%,
9/15/31
...................................................
157,000
148,293
Sherley
Tract
Public
Improvement
District
No.
2,
Special
Assessment,
144A,
2021,
4%,
9/15/41
....................................................
867,000
799,948
Sherley
Tract
Public
Improvement
District
No.
2,
Special
Assessment,
144A,
2021,
4.25%,
9/15/51
..................................................
1,406,000
1,291,212
Sherley
Tract
Public
Improvement
District
No.
2,
Special
Assessment,
144A,
2021,
5%,
9/15/51
....................................................
503,000
467,161
b
City
of
Austin
,
Whisper
Valley
Public
Improvement
District,
Special
Assessment,
144A,
2019,
4.625%,
11/01/39
................................................
1,405,000
1,502,497
Whisper
Valley
Public
Improvement
District,
Special
Assessment,
144A,
2019,
4.75%,
11/01/48
.................................................
2,450,000
2,603,378
City
of
Celina
,
b
Creeks
of
Legacy
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4.25%,
9/01/40
..................................................
230,000
230,903
b
Creeks
of
Legacy
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4.375%,
9/01/49
.................................................
1,845,000
1,852,946
b
Edgewood
Creek
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.75%,
9/01/31
..................................................
215,000
209,208
b
Edgewood
Creek
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.25%,
9/01/41
..................................................
500,000
479,496
b
Edgewood
Creek
Public
Improvement
District,
Special
Assessment,
144A,
2021,
5.25%,
9/01/41
..................................................
370,000
356,451
b
Edgewood
Creek
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.5%,
9/01/50
...................................................
605,000
572,083
b
Edgewood
Creek
Public
Improvement
District,
Special
Assessment,
144A,
2021,
5.5%,
9/01/50
...................................................
500,000
475,869
b
Hillside
Village
Public
Improvement
District,
Special
Assessment,
144A,
2022,
2.75%,
9/01/27
........................................................
290,000
277,966
b
Hillside
Village
Public
Improvement
District,
Special
Assessment,
144A,
2022,
3.125%,
9/01/32
.................................................
231,000
215,425
b
Hillside
Village
Public
Improvement
District,
Special
Assessment,
144A,
2022,
3.375%,
9/01/42
.................................................
866,000
784,600
Lakes
at
Mustang
Ranch
Public
Improvement
District,
Special
Assessment,
2020,
Refunding,
BAM
Insured,
3%,
9/01/35
.................................
1,020,000
991,785
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
124
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Texas
(continued)
City
of
Celina,
(continued)
b
Parks
at
Wilson
Creek
Public
Improvement
District
(The),
Special
Assessment,
144A,
2021,
2.75%,
9/01/26
.............................................
$
145,000
$
140,396
b
Parks
at
Wilson
Creek
Public
Improvement
District
(The),
Special
Assessment,
144A,
2021,
3.5%,
9/01/26
..............................................
245,000
238,659
b
Parks
at
Wilson
Creek
Public
Improvement
District
(The),
Special
Assessment,
144A,
2021,
3.25%,
9/01/31
.............................................
150,000
142,724
b
Parks
at
Wilson
Creek
Public
Improvement
District
(The),
Special
Assessment,
144A,
2021,
4%,
9/01/31
................................................
473,000
454,518
b
Parks
at
Wilson
Creek
Public
Improvement
District
(The),
Special
Assessment,
144A,
2021,
3.5%,
9/01/41
..............................................
1,205,000
1,121,146
b
Parks
at
Wilson
Creek
Public
Improvement
District
(The),
Special
Assessment,
144A,
2021,
4.25%,
9/01/41
.............................................
2,015,000
1,922,414
b
Parks
at
Wilson
Creek
Public
Improvement
District
(The),
Special
Assessment,
144A,
2021,
4.5%,
9/01/51
..............................................
2,501,000
2,361,687
b
Sutton
Fields
East
Public
Improvement
District,
Special
Assessment,
144A,
2022,
3.25%,
9/01/27
..................................................
227,000
221,485
b
Sutton
Fields
East
Public
Improvement
District,
Special
Assessment,
144A,
2022,
3.625%,
9/01/32
.................................................
336,000
322,461
b
Sutton
Fields
East
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4%,
9/01/43
....................................................
1,009,000
969,550
b
Sutton
Fields
East
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4.125%,
9/01/51
.................................................
1,033,000
985,498
b
Sutton
Fields
II
Public
Improvement
District,
Special
Assessment,
144A,
2019,
4.25%,
9/01/49
..................................................
3,065,000
3,116,356
b
Sutton
Fields
II
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4.125%,
9/01/50
.................................................
1,800,000
1,774,742
b
Sutton
Fields
II
Public
Improvement
District,
Special
Assessment,
144A,
2022,
2.875%,
9/01/27
.................................................
115,000
110,806
b
Sutton
Fields
II
Public
Improvement
District,
Special
Assessment,
144A,
2022,
3.25%,
9/01/32
..................................................
250,000
235,893
b
Sutton
Fields
II
Public
Improvement
District,
Special
Assessment,
144A,
2022,
3.5%,
9/01/42
........................................................
1,175,000
1,085,602
b
Sutton
Fields
II
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4%,
9/01/51
........................................................
7,000,000
6,746,801
b
Wells
North
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.75%,
9/01/40
........................................................
425,000
418,307
b
Wells
North
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4%,
9/01/50
........................................................
520,000
509,636
b
Wells
South
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.125%,
9/01/30
........................................................
150,000
146,403
b
Wells
South
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4%,
9/01/40
........................................................
350,000
353,268
b
Wells
South
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4%,
9/01/50
........................................................
965,000
942,599
b
Wells
South
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3%,
9/01/31
........................................................
158,000
148,400
b
Wells
South
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.375%,
9/01/41
........................................................
379,000
344,082
b
Wells
South
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4%,
9/01/51
........................................................
2,008,000
1,935,368
b
City
of
Crandall
,
Cartwright
Ranch
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4%,
9/15/31
........................................................
409,000
401,360
Cartwright
Ranch
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.75%,
9/15/31
..................................................
161,000
160,191
Cartwright
Ranch
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.25%,
9/15/41
..................................................
1,000,000
976,615
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
125
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Texas
(continued)
b
City
of
Crandall,
(continued)
Cartwright
Ranch
Public
Improvement
District,
Special
Assessment,
144A,
2021,
5%,
9/15/41
........................................................
$
1,144,000
$
1,138,193
Cartwright
Ranch
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.5%,
9/15/51
...................................................
2,000,000
1,977,396
Cartwright
Ranch
Public
Improvement
District,
Special
Assessment,
144A,
2021,
5.25%,
9/15/51
..................................................
750,000
750,819
b
City
of
Elmendorf
,
Hickory
Ridge
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.375%,
9/01/31
.................................................
398,000
371,755
Hickory
Ridge
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.75%,
9/01/41
........................................................
1,205,000
1,090,401
Hickory
Ridge
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4%,
9/01/51
........................................................
1,172,000
1,072,793
b
City
of
Fate
,
Monterra
Public
Improvement
District,
Special
Assessment,
144A,
2021,
2.75%,
8/15/26
........................................................
400,000
390,630
Monterra
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.375%,
8/15/31
........................................................
711,000
682,803
Monterra
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.75%,
8/15/41
........................................................
1,871,000
1,747,984
Monterra
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4%,
8/15/51
1,765,000
1,685,519
Williamsburg
East
Public
Improvement
District,
Revenue,
144A,
2020,
4.125%,
8/15/30
........................................................
665,000
664,518
Williamsburg
East
Public
Improvement
District,
Revenue,
144A,
2020,
4.625%,
8/15/40
........................................................
1,163,000
1,167,560
Williamsburg
East
Public
Improvement
District,
Revenue,
144A,
2020,
4.875%,
8/15/50
........................................................
1,772,000
1,783,654
Williamsburg
East
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.375%,
8/15/30
.................................................
125,000
124,271
Williamsburg
East
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.875%,
8/15/40
.................................................
691,000
685,586
Williamsburg
East
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4.125%,
8/15/50
.................................................
994,000
982,486
b
City
of
Ferris
,
Woodstone
Public
Improvement
District
No.
2,
Special
Assessment,
144A,
2022,
3.375%,
9/01/32
.................................................
1,074,000
1,010,713
Woodstone
Public
Improvement
District
No.
2,
Special
Assessment,
144A,
2022,
3.75%,
9/01/42
..................................................
1,259,000
1,173,818
Woodstone
Public
Improvement
District
No.
2,
Special
Assessment,
144A,
2022,
4%,
9/01/51
........................................................
1,577,000
1,518,771
b
City
of
Fort
Worth
,
Fort
Worth
Public
Improvement
District
No.
17
Rock
Creek
Ranch,
Special
Assessment,
144A,
2017,
5%,
9/01/27
................................
1,765,000
1,837,766
Fort
Worth
Public
Improvement
District
No.
17
Rock
Creek
Ranch,
Special
Assessment,
144A,
2017,
5%,
9/01/32
................................
1,270,000
1,296,900
Fort
Worth
Public
Improvement
District
No.
17
Rock
Creek
Ranch,
Special
Assessment,
144A,
2017,
5.125%,
9/01/37
.............................
1,650,000
1,668,970
Fort
Worth
Public
Improvement
District
No.
17
Rock
Creek
Ranch,
Special
Assessment,
144A,
2018,
5%,
9/01/27
................................
1,390,000
1,424,254
Fort
Worth
Public
Improvement
District
No.
17
Rock
Creek
Ranch,
Special
Assessment,
144A,
2018,
5%,
9/01/32
................................
1,530,000
1,557,616
Fort
Worth
Public
Improvement
District
No.
17
Rock
Creek
Ranch,
Special
Assessment,
144A,
2018,
5%,
9/01/37
................................
1,975,000
1,985,930
b
City
of
Haslet
,
Public
Improvement
District
No.
5,
Special
Assessment,
144A,
2021,
2.625%,
9/01/26
........................................................
447,000
437,506
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
126
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Texas
(continued)
b
City
of
Haslet,
(continued)
Public
Improvement
District
No.
5,
Special
Assessment,
144A,
2021,
3.25%,
9/01/31
$
150,000
$
144,519
Public
Improvement
District
No.
5,
Special
Assessment,
144A,
2021,
3.625%,
9/01/41
........................................................
1,271,000
1,196,199
City
of
Horseshoe
Bay
,
Escondido
Public
Improvement
District,
Special
Assessment,
2020,
Refunding,
3%,
10/01/30
.......................................................
500,000
494,762
Escondido
Public
Improvement
District,
Special
Assessment,
2020,
Refunding,
3.25%,
10/01/33
.................................................
435,000
430,433
City
of
Houston
Airport
System
,
United
Airlines,
Inc.
,
Revenue
,
2021
B-1
,
4
%
,
7/15/41
10,500,000
10,859,184
b
City
of
Hutto
,
Cottonwood
Creek
Public
Improvement
District,
Special
Assessment,
144A,
2021,
2.5%,
9/01/26
...................................................
330,000
320,267
Cottonwood
Creek
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.125%,
9/01/31
.................................................
260,000
245,770
Cottonwood
Creek
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.5%,
9/01/41
...................................................
1,038,000
965,443
Durango
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2021,
2.75%,
9/01/26
..................................................
270,000
261,024
Durango
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.5%,
9/01/31
........................................................
392,000
379,685
Durango
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.875%,
9/01/41
.................................................
1,000,000
966,677
Durango
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4%,
9/01/56
........................................................
3,479,000
3,298,202
Emory
Crossing
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.25%,
9/01/31
..................................................
206,000
199,276
Emory
Crossing
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.625%,
9/01/41
.................................................
519,000
490,129
Emory
Crossing
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4%,
9/01/56
........................................................
1,146,000
1,086,020
b
City
of
Justin
,
Timberbrook
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2021,
3%,
9/01/31
....................................................
500,000
464,149
Timberbrook
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2021,
3.375%,
9/01/41
.................................................
2,812,000
2,542,514
Timberbrook
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2021,
4%,
9/01/51
....................................................
1,052,000
993,479
b
City
of
Kaufman
,
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2021,
3.125%,
9/15/31
........................................................
230,000
214,956
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2021,
3.625%,
9/15/41
........................................................
570,000
523,223
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2021,
4%,
9/15/50
.
440,000
419,108
b
City
of
Kyle
,
6
Creeks
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.125%,
9/01/30
........................................................
400,000
386,339
6
Creeks
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.625%,
9/01/40
........................................................
1,310,000
1,231,979
6
Creeks
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.5%,
9/01/44
........................................................
1,380,000
1,251,959
6
Creeks
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4%,
9/01/46
375,000
361,368
6
Creeks
Public
Improvement
District,
Special
Assessment,
144A,
2021,
2.75%,
9/01/26
........................................................
224,000
217,074
6
Creeks
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.375%,
9/01/31
........................................................
530,000
509,927
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
127
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Texas
(continued)
b
City
of
Kyle,
(continued)
6
Creeks
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.75%,
9/01/41
........................................................
$
1,428,000
$
1,343,034
6
Creeks
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4%,
9/01/46
1,000,000
960,698
City
of
Lago
Vista
,
Tessera
on
Lake
Travis
Public
Improvement
District,
Special
Assessment,
2020,
Refunding,
3.125%,
9/01/30
........................................
300,000
299,112
Tessera
on
Lake
Travis
Public
Improvement
District,
Special
Assessment,
2020,
Refunding,
3.75%,
9/01/42
.........................................
1,045,000
1,036,134
b
Tessera
on
Lake
Travis
Public
Improvement
District,
Special
Assessment,
144A,
2020
A,
Refunding,
5%,
9/01/30
.....................................
2,000,000
2,099,040
b
Tessera
on
Lake
Travis
Public
Improvement
District,
Special
Assessment,
144A,
2020
A,
Refunding,
5.125%,
9/01/35
..................................
2,070,000
2,175,419
b
Tessera
on
Lake
Travis
Public
Improvement
District,
Special
Assessment,
144A,
2020
A,
Refunding,
5.5%,
9/01/40
....................................
2,715,000
2,898,840
b
Tessera
on
Lake
Travis
Public
Improvement
District,
Special
Assessment,
144A,
2020
B,
Refunding,
4.875%,
9/01/50
..................................
2,500,000
2,541,744
b
City
of
Lavon
,
Elevon
Public
Improvement
District,
Special
Assessment,
144A,
2022,
3.5%,
9/15/27
600,000
592,853
Elevon
Public
Improvement
District,
Special
Assessment,
144A,
2022,
3.75%,
9/15/27
........................................................
305,000
301,392
Elevon
Public
Improvement
District,
Special
Assessment,
144A,
2022,
3.875%,
9/15/32
........................................................
1,000,000
982,993
Elevon
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4.125%,
9/15/32
........................................................
455,000
446,980
Elevon
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4%,
9/15/42
2,259,000
2,188,135
Elevon
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4.375%,
9/15/42
........................................................
1,000,000
978,750
Elevon
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4.125%,
9/15/52
........................................................
5,295,000
5,129,451
Elevon
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4.5%,
9/15/52
1,495,000
1,468,171
City
of
Leander
,
Oak
Creek
Public
Improvement
District,
Special
Assessment,
2020,
Refunding,
3.25%,
9/01/32
..................................................
530,000
539,652
Oak
Creek
Public
Improvement
District,
Special
Assessment,
2020,
Refunding,
3.25%,
9/01/38
..................................................
1,275,000
1,275,741
Oak
Creek
Public
Improvement
District,
Special
Assessment,
2020,
Refunding,
3.25%,
9/01/44
..................................................
1,490,000
1,445,909
b
City
of
Liberty
Hill
,
Butler
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2022,
2.625%,
9/01/27
........................................................
550,000
535,529
Butler
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2022,
3.5%,
9/01/27
........................................................
225,000
218,739
Butler
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2022,
3.125%,
9/01/32
........................................................
750,000
723,867
Butler
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2022,
3.875%,
9/01/32
........................................................
275,000
263,393
Butler
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2022,
3.375%,
9/01/42
........................................................
1,771,000
1,665,696
Butler
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4.125%,
9/01/42
........................................................
1,097,000
1,041,680
Butler
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4%,
9/01/52
........................................................
2,500,000
2,495,621
Butler
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4.375%,
9/01/52
........................................................
1,705,000
1,624,178
Summerlyn
West
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.125%,
9/01/30
.................................................
250,000
246,507
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
128
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Texas
(continued)
b
City
of
Liberty
Hill,
(continued)
Summerlyn
West
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4%,
9/01/40
........................................................
$
845,000
$
854,226
Summerlyn
West
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4%,
9/01/54
........................................................
1,890,000
1,867,172
b
City
of
Manor
,
Manor
Heights
Public
Improvement
District,
Special
Assessment,
144A,
2021,
2.5%,
9/15/26
........................................................
110,000
106,275
Manor
Heights
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.125%,
9/15/26
.................................................
210,000
202,175
Manor
Heights
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.125%,
9/15/31
.................................................
250,000
234,655
Manor
Heights
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.75%,
9/15/31
........................................................
310,000
292,149
Manor
Heights
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.5%,
9/15/41
........................................................
700,000
636,455
Manor
Heights
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.125%,
9/15/41
.................................................
830,000
783,500
Manor
Heights
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4%,
9/15/51
........................................................
1,000,000
962,669
Manor
Heights
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.375%,
9/15/51
.................................................
1,225,000
1,147,824
b
City
of
Marble
Falls
,
Thunder
Rock
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.875%,
9/01/31
.................................................
350,000
327,761
Thunder
Rock
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.625%,
9/01/31
.................................................
150,000
141,915
Thunder
Rock
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.125%,
9/01/41
.................................................
1,000,000
929,758
Thunder
Rock
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.875%,
9/01/41
.................................................
450,000
420,942
Thunder
Rock
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.375%,
9/01/51
.................................................
1,470,000
1,352,084
Thunder
Rock
Public
Improvement
District,
Special
Assessment,
144A,
2021,
5.125%,
9/01/51
.................................................
620,000
576,458
b
City
of
Mclendon-Chisholm
,
Special
Assessment,
144A,
2021,
2.625%,
9/15/26
.........................
205,000
198,095
Special
Assessment,
144A,
2021,
3.625%,
9/15/41
.........................
620,000
571,879
Special
Assessment,
144A,
2021,
4%,
9/15/51
............................
865,000
832,709
b
City
of
Midlothian
,
Redden
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.5%,
9/15/31
........................................................
410,000
394,821
Redden
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.125%,
9/15/31
.................................................
230,000
222,588
Redden
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.875%,
9/15/41
.................................................
1,105,000
1,034,992
Redden
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.5%,
9/15/41
........................................................
420,000
404,650
Redden
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.125%,
9/15/51
.................................................
1,635,000
1,544,259
Redden
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.75%,
9/15/51
..................................................
610,000
583,860
b
City
of
New
Braunfels
,
Solms
Landing
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.625%,
9/01/26
.................................................
220,000
214,302
Solms
Landing
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.25%,
9/01/31
..................................................
320,000
307,173
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
129
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Texas
(continued)
b
City
of
New
Braunfels,
(continued)
Solms
Landing
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.5%,
9/01/41
........................................................
$
882,000
$
835,893
Solms
Landing
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.75%,
9/01/51
..................................................
1,454,000
1,341,459
b
City
of
Oak
Point
,
Oak
Point
Public
Improvement
District
No.
2,
Special
Assessment,
144A,
2020,
3.25%,
9/01/30
..................................................
300,000
296,703
Oak
Point
Public
Improvement
District
No.
2,
Special
Assessment,
144A,
2020,
3.75%,
9/01/40
..................................................
1,170,000
1,153,095
Oak
Point
Public
Improvement
District
No.
2,
Special
Assessment,
144A,
2020,
4%,
9/01/50
........................................................
1,060,000
1,033,571
Wildridge
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2021,
2.75%,
9/01/31
..................................................
160,000
149,833
Wildridge
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2021,
3.125%,
9/01/41
.................................................
643,000
583,413
Wildridge
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2021,
4%,
9/01/51
........................................................
987,000
957,041
b
City
of
Plano
,
Collin
Creek
East
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.375%,
9/15/51
.................................................
2,750,000
2,622,788
Collin
Creek
West
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4%,
9/15/51
....................................................
2,343,000
2,264,083
b
City
of
Princeton
,
Arcadia
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2020,
2.875%,
9/01/25
.................................................
128,000
128,538
Arcadia
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.375%,
9/01/30
.................................................
180,000
180,471
Arcadia
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.875%,
9/01/40
.................................................
650,000
653,981
Arcadia
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4.125%,
9/01/50
.................................................
936,000
943,014
Brookside
Public
Improvement
District,
Special
Assessment,
144A,
2021,
2.5%,
9/01/26
........................................................
111,000
107,971
Brookside
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3%,
9/01/31
........................................................
128,000
121,769
Brookside
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.375%,
9/01/41
........................................................
325,000
299,548
Brookside
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4%,
9/01/51
........................................................
435,000
420,102
Winchester
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.25%,
9/01/30
........................................................
200,000
202,360
Winchester
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.75%,
9/01/40
........................................................
470,000
476,567
Winchester
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4%,
9/01/50
........................................................
675,000
686,841
Winchester
Public
Improvement
District,
Special
Assessment,
144A,
2021,
2.875%,
9/01/31
........................................................
110,000
105,217
Winchester
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.25%,
9/01/41
........................................................
518,000
477,666
Winchester
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4%,
9/01/51
........................................................
620,000
611,536
b
City
of
Red
Oak
,
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2021,
2.625%,
9/15/26
........................................................
150,000
146,074
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2021,
3.125%,
9/15/31
........................................................
354,000
338,040
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
130
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Texas
(continued)
b
City
of
Red
Oak,
(continued)
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2021,
3.375%,
9/15/41
........................................................
$
500,000
$
458,875
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2021,
4%,
9/15/51
.
665,000
639,986
b
City
of
Rowlett
,
Trails
at
Cottonwood
Creek
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.125%,
9/15/31
............................................
200,000
195,535
Trails
at
Cottonwood
Creek
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.75%,
9/15/31
.............................................
300,000
297,857
Trails
at
Cottonwood
Creek
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.75%,
9/15/41
.............................................
820,000
790,223
Trails
at
Cottonwood
Creek
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.125%,
9/15/41
............................................
600,000
586,869
Trails
at
Cottonwood
Creek
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4%,
9/15/51
................................................
1,172,000
1,131,818
Trails
at
Cottonwood
Creek
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.25%,
9/15/51
.............................................
1,000,000
964,104
b
City
of
Royse
City
,
Creekshaw
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.375%,
9/15/30
........................................................
450,000
447,025
Creekshaw
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.625%,
9/15/30
........................................................
225,000
226,900
Creekshaw
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4.375%,
9/15/30
........................................................
210,000
212,471
Creekshaw
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.875%,
9/15/40
........................................................
1,190,000
1,179,105
Creekshaw
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4.125%,
9/15/40
........................................................
590,000
595,987
Creekshaw
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4.875%,
9/15/40
........................................................
375,000
380,789
Creekshaw
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4.125%,
9/15/50
........................................................
1,780,000
1,756,438
Creekshaw
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4.375%,
9/15/50
........................................................
715,000
723,317
Creekshaw
Public
Improvement
District,
Special
Assessment,
144A,
2020,
5.125%,
9/15/50
........................................................
575,000
583,413
Waterscape
Public
Improvement
District,
Special
Assessment,
144A,
2017,
5%,
9/15/48
........................................................
2,700,000
2,870,328
Waterscape
Public
Improvement
District,
Special
Assessment,
144A,
2019,
4.375%,
9/15/39
........................................................
610,000
634,105
Waterscape
Public
Improvement
District,
Special
Assessment,
144A,
2019,
4.5%,
9/15/48
........................................................
1,260,000
1,302,939
b
City
of
Sachse
,
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2020,
3.25%,
9/15/30
405,000
400,824
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2020,
3.75%,
9/15/40
1,070,000
1,055,902
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2020,
5.375%,
9/15/40
........................................................
2,035,000
2,046,017
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2020,
4%,
9/15/50
.
1,485,000
1,450,358
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2020,
5.625%,
9/15/50
........................................................
2,235,000
2,246,971
City
of
San
Marcos
,
Special
Assessment,
2020,
4.375%,
9/01/25
.............................
260,000
261,840
Special
Assessment,
2020,
4.875%,
9/01/30
.............................
305,000
312,352
Special
Assessment,
2020,
5.375%,
9/01/40
.............................
1,300,000
1,347,342
Special
Assessment,
2020,
5.625%,
9/01/50
.............................
1,300,000
1,351,584
b
Whisper
South
Public
Improvement
District,
Special
Assessment,
144A,
2022,
3.75%,
9/01/27
..................................................
300,000
290,285
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
131
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Texas
(continued)
City
of
San
Marcos,
(continued)
b
Whisper
South
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4%,
9/01/32
........................................................
$
425,000
$
402,259
b
Whisper
South
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4.25%,
9/01/42
..................................................
1,221,000
1,137,027
b
Whisper
South
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4.5%,
9/01/51
........................................................
1,621,000
1,506,096
b
City
of
Sinton
,
Somerset
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2022,
4.375%,
9/01/27
.................................................
381,000
371,013
Somerset
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2022,
4.75%,
9/01/32
..................................................
660,000
634,618
Somerset
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2022,
5.125%,
9/01/42
.................................................
1,000,000
958,387
Somerset
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2022,
5.25%,
9/01/51
..................................................
1,250,000
1,197,618
b
City
of
Tomball
,
Raburn
Reserve
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.375%,
9/15/30
.................................................
375,000
373,069
Raburn
Reserve
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4%,
9/15/50
........................................................
2,015,000
1,969,389
b
City
of
Venus
,
Patriot
Estates
Public
Improvement
District,
Special
Assessment,
144A,
2021,
2.625%,
9/15/26
.................................................
234,000
228,021
Patriot
Estates
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.125%,
9/15/31
.................................................
250,000
236,989
Patriot
Estates
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.375%,
9/15/41
.................................................
1,105,000
1,014,797
Patriot
Estates
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4%,
9/15/51
........................................................
2,024,000
1,950,714
Clifton
Higher
Education
Finance
Corp.
,
Uplift
Education
,
Revenue
,
A
,
5
%
,
12/01/45
.
3,855,000
4,140,705
b
Club
Municipal
Management
District
No.
1
,
Improvement
Area
#2,
Special
Assessment,
144A,
2021,
2.5%,
9/01/26
.........
200,000
195,081
Improvement
Area
#2,
Special
Assessment,
144A,
2021,
3%,
9/01/31
...........
271,000
259,072
Improvement
Area
#2,
Special
Assessment,
144A,
2021,
3.25%,
9/01/41
........
1,012,000
935,834
Improvement
Area
#2,
Special
Assessment,
144A,
2021,
4%,
9/01/50
...........
1,420,000
1,420,911
Conroe
Local
Government
Corp.
,
Conroe
Convention
Center
Hotel,
Revenue,
Second
Lien,
2021
B,
3.5%,
10/01/31
.
450,000
425,951
Conroe
Convention
Center
Hotel,
Revenue,
Second
Lien,
2021
B,
5%,
10/01/50
..
1,200,000
1,253,672
b
County
of
Hays
,
La
Cima
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.25%,
9/15/30
........................................................
100,000
99,042
La
Cima
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.75%,
9/15/40
........................................................
800,000
790,505
La
Cima
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4%,
9/15/50
1,200,000
1,173,975
b
County
of
Medina
,
Woodlands
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.5%,
9/01/26
........................................................
240,000
232,137
Woodlands
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.125%,
9/01/31
........................................................
400,000
382,591
Woodlands
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.875%,
9/01/31
........................................................
815,000
784,603
Woodlands
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.5%,
9/01/41
........................................................
1,085,000
1,038,779
Woodlands
Public
Improvement
District,
Special
Assessment,
144A,
2021,
5.25%,
9/01/41
........................................................
780,000
746,964
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
132
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Texas
(continued)
b
County
of
Medina,
(continued)
Woodlands
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.75%,
9/01/50
........................................................
$
870,000
$
818,292
Woodlands
Public
Improvement
District,
Special
Assessment,
144A,
2021,
5.5%,
9/01/50
........................................................
1,160,000
1,105,558
El
Paso
Downtown
Development
Corp.
,
City
of
El
Paso
,
Revenue
,
2013
A
,
Pre-
Refunded
,
7.25
%
,
8/15/38
...........................................
15,000,000
16,306,335
b
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
9,065,000
8,409,449
Grand
Parkway
Transportation
Corp.
,
Revenue,
2013
B,
Zero
Cpn.,
10/01/45
..................................
10,000,000
11,336,282
Revenue,
First
Tier,
2013
A,
5.125%,
10/01/43
............................
2,850,000
3,008,365
Harris
County
Cultural
Education
Facilities
Finance
Corp.
,
Brazos
Presbyterian
Homes
Obligated
Group,
Revenue,
2013
B,
Pre-Refunded,
7%,
1/01/43
........................................................
3,000,000
3,148,464
Brazos
Presbyterian
Homes
Obligated
Group,
Revenue,
2013
B,
Pre-Refunded,
7%,
1/01/48
........................................................
5,250,000
5,509,812
Brazos
Presbyterian
Homes
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
1/01/48
........................................................
5,000,000
5,352,303
Harris
County-Houston
Sports
Authority
,
Revenue,
Third
Lien
,
2004
A-3
,
NATL
Insured
,
Zero
Cpn.,
11/15/37
................................................
3,700,000
1,559,185
d
Mesquite
Health
Facilities
Development
Corp.
,
Christian
Care
Centers,
Inc.
Obligated
Group,
Revenue,
2014,
Refunding,
5%,
2/15/36
........................................................
1,000,000
780,000
Christian
Care
Centers,
Inc.
Obligated
Group,
Revenue,
2014,
Refunding,
5.125%,
2/15/42
........................................................
3,750,000
2,925,000
Christian
Care
Centers,
Inc.
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
2/15/35
........................................................
5,175,000
4,036,499
New
Hope
Cultural
Education
Facilities
Finance
Corp.
,
Cardinal
Bay,
Inc.,
Revenue,
D,
6%,
7/01/26
.............................
110,000
49,500
Cardinal
Bay,
Inc.,
Revenue,
D,
7%,
7/01/51
.............................
5,110,000
2,299,500
CHF-Collegiate
Housing
College
Station
I
LLC,
Revenue,
2014
A,
5%,
4/01/29
....
2,190,000
2,283,508
CHF-Collegiate
Housing
College
Station
I
LLC,
Revenue,
2014
A,
5%,
4/01/46
....
1,500,000
1,544,424
CHF-Collegiate
Housing
Corpus
Christi
II
LLC,
Revenue,
A,
Pre-Refunded,
5%,
4/01/36
........................................................
1,000,000
1,138,690
CHF-Collegiate
Housing
Corpus
Christi
II
LLC,
Revenue,
A,
Pre-Refunded,
5%,
4/01/48
........................................................
2,500,000
2,846,726
CHF-Collegiate
Housing
Island
Campus
LLC,
Revenue,
2017
A,
ETM,
4%,
4/01/22
250,000
250,672
CHF-Collegiate
Housing
Island
Campus
LLC,
Revenue,
2017
A,
ETM,
5%,
4/01/24
965,000
1,038,867
CHF-Collegiate
Housing
Island
Campus
LLC,
Revenue,
2017
A,
ETM,
5%,
4/01/26
525,000
597,813
CHF-Collegiate
Housing
Island
Campus
LLC,
Revenue,
2017
A,
ETM,
5%,
4/01/27
460,000
536,184
b
CityScape
Schools,
Inc.,
Revenue,
144A,
2019
A,
5%,
8/15/39
................
500,000
556,599
b
CityScape
Schools,
Inc.,
Revenue,
144A,
2019
A,
5%,
8/15/51
................
1,570,000
1,729,331
Longhorn
Village
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
1/01/42
......
5,000,000
5,276,081
Longhorn
Village
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
1/01/47
......
4,595,000
4,840,264
Morningside
Ministries
Obligated
Group,
Revenue,
2013,
6.5%,
1/01/43
.........
4,350,000
4,461,420
Morningside
Ministries
Obligated
Group,
Revenue,
2020
A,
5%,
1/01/55
.........
4,100,000
4,386,151
NCCD-College
Station
Properties
LLC,
Revenue,
A,
5%,
7/01/47
..............
30,000,000
25,875,000
Presbyterian
Village
North
Obligated
Group,
Revenue,
2018,
Refunding,
5%,
10/01/39
.......................................................
2,750,000
2,906,011
Presbyterian
Village
North
Obligated
Group,
Revenue,
2018,
Refunding,
5.25%,
10/01/49
.......................................................
12,600,000
13,378,259
Presbyterian
Village
North
Obligated
Group,
Revenue,
2020
A,
5.25%,
10/01/55
...
2,500,000
2,655,923
Quality
Senior
Housing
Foundation
of
East
Texas,
Inc.,
Revenue,
2019
A-1,
5%,
12/01/39
.......................................................
125,000
134,304
Quality
Senior
Housing
Foundation
of
East
Texas,
Inc.,
Revenue,
Second
Tier,
2019
B,
5.5%,
12/01/54
................................................
14,845,000
14,426,805
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
133
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Texas
(continued)
New
Hope
Cultural
Education
Facilities
Finance
Corp.,
(continued)
Quality
Senior
Housing
Foundation
of
East
Texas,
Inc.,
Revenue,
Third
Tier,
2019
C,
6%,
12/01/54
...................................................
$
6,895,000
$
6,402,785
Wesleyan
Homes
Obligated
Group,
Revenue,
2014,
5.5%,
1/01/43
............
3,200,000
3,266,886
Wesleyan
Homes
Obligated
Group,
Revenue,
2014,
5.5%,
1/01/49
............
1,000,000
1,018,249
Wesleyan
Homes
Obligated
Group,
Revenue,
2019,
Refunding,
5%,
1/01/50
.....
1,180,000
1,182,626
Wesleyan
Homes
Obligated
Group,
Revenue,
2019,
Refunding,
5%,
1/01/55
.....
4,400,000
4,392,643
b
North
Parkway
Municipal
Management
District
No.
1
,
Special
Assessment,
144A,
2021,
3.625%,
9/15/26
.........................
1,000,000
1,021,966
Special
Assessment,
144A,
2021,
4.25%,
9/15/31
.........................
1,500,000
1,565,474
Special
Assessment,
144A,
2021,
4.75%,
9/15/41
.........................
5,000,000
5,286,642
Special
Assessment,
144A,
2021,
5%,
9/15/51
............................
6,500,000
6,920,819
City
of
Celina
Legacy
Hills
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.625%,
9/15/31
............................................
250,000
252,396
City
of
Celina
Legacy
Hills
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4%,
9/15/41
................................................
1,000,000
1,004,718
City
of
Celina
Legacy
Hills
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.25%,
9/15/51
.............................................
1,160,000
1,174,518
North
Texas
Tollway
Authority
,
North
Texas
Tollway
System,
Revenue,
First
Tier,
I,
Pre-Refunded,
6.5%,
1/01/43
..
25,000,000
28,571,275
Special
Projects
System,
Revenue,
2011
B,
Pre-Refunded,
Zero
Cpn.,
9/01/37
....
7,500,000
4,009,967
Special
Projects
System,
Revenue,
2011
C,
Pre-Refunded,
6.75%,
9/01/45
......
25,000,000
35,678,573
Special
Projects
System,
Revenue,
2011
C,
Pre-Refunded,
Zero
Cpn.,
9/01/43
....
10,000,000
13,362,996
b
Northwood
Municipal
Utility
District
No.
1
,
GO,
144A,
2020,
Refunding,
3.5%,
8/01/25
..............................
1,035,000
1,052,219
GO,
144A,
2020,
Refunding,
4%,
8/01/31
................................
1,070,000
1,130,562
b
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
B
,
6
%
,
12/01/52
..............
5,075,000
5,090,383
Red
River
Education
Finance
Corp.
,
Houston
Baptist
University
,
Revenue
,
2017
,
Refunding
,
5.5
%
,
10/01/46
...........................................
4,250,000
4,786,514
d
Red
River
Health
Facilities
Development
Corp.
,
Eden
Home,
Inc.
Obligated
Group
,
Revenue
,
2012
,
7.25
%
,
12/15/42
......................................
11,000,000
6,875,000
Tarrant
County
Cultural
Education
Facilities
Finance
Corp.
,
Cumberland
Rest,
Inc.
(The)
,
Revenue
,
A-1
,
Refunding
,
5
%
,
10/01/49
............................
5,125,000
5,439,202
Texas
Transportation
Commission
,
Revenue,
First
Tier,
2019
A,
Zero
Cpn.,
8/01/46
...........................
3,000,000
1,023,701
Revenue,
First
Tier,
2019
A,
Zero
Cpn.,
8/01/47
...........................
5,750,000
1,861,673
Revenue,
First
Tier,
2019
A,
Zero
Cpn.,
8/01/51
...........................
3,500,000
909,978
Revenue,
First
Tier,
2019
A,
Zero
Cpn.,
8/01/52
...........................
4,000,000
981,267
Revenue,
First
Tier,
2019
A,
Zero
Cpn.,
8/01/53
...........................
400,000
92,818
b
Town
of
Flower
Mound
,
River
Walk
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2021,
Refunding,
2.625%,
9/01/26
........................................
820,000
797,209
River
Walk
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2021,
Refunding,
3.25%,
9/01/31
.........................................
750,000
712,189
River
Walk
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2021,
Refunding,
3.5%,
9/01/36
..........................................
800,000
746,264
River
Walk
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2021,
Refunding,
4%,
9/01/43
............................................
2,500,000
2,382,298
b
Town
of
Little
Elm
,
Spiritas
East
Public
Improvement
District,
Special
Assessment,
144A,
2022,
3.25%,
9/01/27
........................................................
139,000
134,434
Spiritas
East
Public
Improvement
District,
Special
Assessment,
144A,
2022,
3.5%,
9/01/32
........................................................
205,000
193,252
Spiritas
East
Public
Improvement
District,
Special
Assessment,
144A,
2022,
3.75%,
9/01/42
........................................................
529,000
484,217
Spiritas
East
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4%,
9/01/51
........................................................
509,000
470,793
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
134
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Texas
(continued)
Town
of
Ponder
,
Special
Assessment,
2017,
5%,
9/01/45
.................................
$
500,000
$
531,810
Special
Assessment,
2017,
5%,
9/01/47
.................................
865,000
919,632
Viridian
Municipal
Management
District
,
Viridian
Public
Improvement
District,
Special
Assessment,
2020,
2.875%,
12/01/30
.
258,000
253,770
Viridian
Public
Improvement
District,
Special
Assessment,
2020,
3.125%,
12/01/35
.
415,000
408,665
Viridian
Public
Improvement
District,
Special
Assessment,
2020,
3.375%,
12/01/40
.
486,000
474,405
Viridian
Public
Improvement
District,
Special
Assessment,
2020,
3.5%,
12/01/47
..
835,000
808,705
552,606,873
Utah
0.5%
Military
Installation
Development
Authority
,
Revenue,
2021
A-2,
4%,
6/01/36
......................................
2,250,000
2,173,869
Revenue,
2021
A-2,
4%,
6/01/41
......................................
7,215,000
6,806,131
Revenue,
2021
A-2,
4%,
6/01/52
......................................
24,745,000
22,159,476
b
Utah
Charter
School
Finance
Authority
,
Mountain
West
Montessori
Academy,
Inc.,
Revenue,
144A,
2020
A,
5%,
6/15/39
..
475,000
516,752
Mountain
West
Montessori
Academy,
Inc.,
Revenue,
144A,
2020
A,
5%,
6/15/49
..
825,000
884,243
32,540,471
Vermont
0.0%
†
Vermont
Economic
Development
Authority
,
Wake
Robin
Corp.
,
Revenue
,
2021
A
,
Refunding
,
4
%
,
5/01/45
.............................................
2,850,000
2,900,278
Virginia
1.0%
b
Farms
New
Kent
Community
Development
Authority
,
Special
Assessment
,
144A,
2021
A
,
Refunding
,
3.75
%
,
3/01/36
.........................................
7,900,000
8,046,351
Farmville
Industrial
Development
Authority
,
Longwood
Housing
Foundation
LLC,
Revenue,
2018
A,
Refunding,
5%,
1/01/43
...
500,000
561,656
Longwood
Housing
Foundation
LLC,
Revenue,
2018
A,
Refunding,
5%,
1/01/48
...
500,000
558,056
Longwood
Housing
Foundation
LLC,
Revenue,
2020
A,
Refunding,
5%,
1/01/40
...
2,000,000
2,307,172
Longwood
Housing
Foundation
LLC,
Revenue,
2020
A,
Refunding,
5%,
1/01/50
...
2,700,000
3,069,736
Longwood
Housing
Foundation
LLC,
Revenue,
2020
A,
Refunding,
5%,
1/01/59
...
2,000,000
2,258,224
Henrico
County
Economic
Development
Authority
,
Virginia
United
Methodist
Homes,
Inc.
Obligated
Group,
Revenue,
2019
A,
5%,
6/01/44
........................................................
3,550,000
3,767,388
Virginia
United
Methodist
Homes,
Inc.
Obligated
Group,
Revenue,
2019
A,
5%,
6/01/49
........................................................
4,065,000
4,304,904
James
City
County
Economic
Development
Authority
,
Virginia
United
Methodist
Homes,
Inc.
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
6/01/41
............................................
625,000
644,928
Virginia
United
Methodist
Homes,
Inc.
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
6/01/47
............................................
1,000,000
1,017,548
Virginia
Small
Business
Financing
Authority
,
Elizabeth
River
Crossings
OpCo
LLC,
Revenue,
Senior
Lien,
2012,
Refunding,
6%,
1/01/37
........................................................
6,485,000
6,588,873
Elizabeth
River
Crossings
OpCo
LLC,
Revenue,
Senior
Lien,
2012,
Refunding,
5.5%,
1/01/42
........................................................
35,790,000
36,289,267
69,414,103
Washington
1.2%
g
Coalview
Centralia
LLC
,
15
%
,
3/31/22
....................................
1,192,000
1,192,000
Greater
Wenatchee
Regional
Events
Center
Public
Facilities
District
,
Revenue
,
A
,
Pre-
Refunded
,
5.5
%
,
9/01/42
............................................
6,850,000
7,014,549
Ocean
Shores
Local
Improvement
District
,
Special
Assessment
,
2011
,
7.25
%
,
2/01/31
1,310,000
1,546,217
Washington
Economic
Development
Finance
Authority
,
d
Coalview
Centralia
LLC,
Revenue,
2013,
8.25%,
8/01/25
....................
3,800,000
608,000
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
135
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Washington
(continued)
Washington
Economic
Development
Finance
Authority,
(continued)
d
Coalview
Centralia
LLC,
Revenue,
2013,
9.5%,
8/01/25
.....................
$
12,855,000
$
2,056,800
f
Propeller
Airports
Paine
Field
LLC,
Revenue,
A,
Mandatory
Put,
6.5%,
3/01/24
....
24,500,000
24,953,079
Washington
Health
Care
Facilities
Authority
,
CommonSpirit
Health
Obligated
Group
,
Revenue
,
2019
A-2
,
Refunding
,
5
%
,
8/01/44
.............................
6,500,000
7,547,702
b
Washington
State
Housing
Finance
Commission
,
eliseo
Obligated
Group,
Revenue,
144A,
2021
A,
Refunding,
4%,
1/01/41
........
5,000,000
4,876,884
eliseo
Obligated
Group,
Revenue,
144A,
2021
A,
Refunding,
4%,
1/01/51
........
10,070,000
9,446,378
Presbyterian
Retirement
Communities
Northwest
Obligated
Group,
Revenue,
144A,
2019
A,
5%,
1/01/49
..............................................
2,750,000
2,885,650
Presbyterian
Retirement
Communities
Northwest
Obligated
Group,
Revenue,
144A,
2019
A,
5%,
1/01/55
..............................................
1,800,000
1,881,856
Presbyterian
Retirement
Communities
Northwest
Obligated
Group,
Revenue,
144A,
A,
Refunding,
5%,
1/01/46
.........................................
2,250,000
2,330,816
Presbyterian
Retirement
Communities
Northwest
Obligated
Group,
Revenue,
144A,
A,
Refunding,
5%,
1/01/51
.........................................
1,700,000
1,756,553
Spokane
United
Methodist
Homes
Obligated
Group,
Revenue,
144A,
2019,
5%,
1/01/55
........................................................
9,020,000
9,207,662
Spokane
United
Methodist
Homes
Obligated
Group,
Revenue,
144A,
2020
A,
5%,
1/01/51
........................................................
6,000,000
6,138,937
83,443,083
West
Virginia
0.2%
County
of
Kanawha
,
West
Virginia
State
University
Foundation,
Inc.
,
Revenue
,
2013
,
Pre-Refunded
,
6.75
%
,
7/01/45
........................................
6,650,000
7,137,316
b
Monongalia
County
Commission
Excise
Tax
District
,
Revenue,
144A,
2021
A,
Refunding,
4.125%,
6/01/43
.......................
2,250,000
2,376,560
Revenue,
144A,
2021
B,
4.875%,
6/01/43
...............................
1,635,000
1,679,608
11,193,484
Wisconsin
2.3%
Public
Finance
Authority
,
2017
IAVF
Rubix
LLC,
Revenue,
2020
A,
4%,
12/01/40
.....................
1,070,000
1,071,591
2017
IAVF
Rubix
LLC,
Revenue,
2020
A,
4.25%,
12/01/50
...................
7,225,000
7,256,950
A&T
Real
Estate
Foundation
LLC,
Revenue,
2019
B,
5%,
6/01/39
.............
1,595,000
1,829,286
A&T
Real
Estate
Foundation
LLC,
Revenue,
2019
B,
5%,
6/01/44
.............
1,900,000
2,156,372
A&T
Real
Estate
Foundation
LLC,
Revenue,
2019
B,
5%,
6/01/49
.............
5,225,000
5,897,260
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020
A,
5%,
11/15/41
.......................................................
1,205,000
1,402,561
b
Affordable
Housing
Preservation
Corp.
(The),
Revenue,
144A,
2021,
5.25%,
12/01/22
.......................................................
17,900,000
17,817,647
Celanese
US
Holdings
LLC,
Revenue,
2016
C,
Refunding,
4.3%,
11/01/30
.......
4,000,000
4,314,170
Coral
Academy
of
Science
Las
Vegas,
Revenue,
2017
A,
5%,
7/01/45
..........
2,805,000
3,068,687
Coral
Academy
of
Science
Las
Vegas,
Revenue,
2017
A,
5%,
7/01/53
..........
4,345,000
4,731,617
b
Eno
River
Academy
Holdings,
Inc.,
Revenue,
144A,
2020
A,
5%,
6/15/40
........
815,000
894,852
b
Eno
River
Academy
Holdings,
Inc.,
Revenue,
144A,
2020
A,
5%,
6/15/54
........
1,380,000
1,490,582
b
Estancia
Valley
Classical
Academy,
Revenue,
144A,
2021
A,
Refunding,
4%,
7/01/41
1,000,000
916,452
b
Estancia
Valley
Classical
Academy,
Revenue,
144A,
2021
A,
Refunding,
4.25%,
7/01/51
........................................................
4,000,000
3,649,596
b
Friends
Homes
Obligated
Group,
Revenue,
144A,
2019,
Refunding,
5%,
9/01/39
..
1,230,000
1,364,496
b
Friends
Homes
Obligated
Group,
Revenue,
144A,
2019,
Refunding,
5%,
9/01/49
..
7,600,000
8,356,292
b
Friends
Homes
Obligated
Group,
Revenue,
144A,
2019,
Refunding,
5%,
9/01/54
..
1,920,000
2,102,546
b
High
Desert
Montessori
Charter
School,
Revenue,
144A,
2021
A,
5%,
6/01/36
....
300,000
321,424
b
High
Desert
Montessori
Charter
School,
Revenue,
144A,
2021
A,
5%,
6/01/51
....
1,000,000
1,047,567
b
High
Desert
Montessori
Charter
School,
Revenue,
144A,
2021
A,
5%,
6/01/61
....
1,275,000
1,327,568
b
Hope
Housing
Foundation
Obligated
Group,
Revenue,
144A,
2022
C,
4.6%,
12/01/37
5,460,000
5,252,307
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
136
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Wisconsin
(continued)
Public
Finance
Authority,
(continued)
b
Masonic
&
Eastern
Star
Home
of
NC,
Inc.
Obligated
Group,
Revenue,
144A,
2017,
Refunding,
5%,
3/01/37
............................................
$
625,000
$
685,948
b
Masonic
&
Eastern
Star
Home
of
NC,
Inc.
Obligated
Group,
Revenue,
144A,
2017,
Refunding,
5%,
3/01/52
............................................
4,100,000
4,336,857
b
Masonic
&
Eastern
Star
Home
of
NC,
Inc.
Obligated
Group,
Revenue,
144A,
2020
A,
5.25%,
3/01/45
..................................................
1,665,000
1,825,343
b
Masonic
&
Eastern
Star
Home
of
NC,
Inc.
Obligated
Group,
Revenue,
144A,
2020
A,
5.25%,
3/01/55
..................................................
6,810,000
7,416,893
b
Ocean
Academy
Charter
School,
Revenue,
144A,
2021,
4%,
10/15/31
..........
185,000
188,486
b
Ocean
Academy
Charter
School,
Revenue,
144A,
2021,
5%,
10/15/41
..........
570,000
611,822
b
Ocean
Academy
Charter
School,
Revenue,
144A,
2021,
5%,
10/15/51
..........
1,130,000
1,199,963
b
Signature
Preparatory,
Revenue,
144A,
2021
A,
5%,
6/15/31
.................
600,000
644,231
b
Signature
Preparatory,
Revenue,
144A,
2021
A,
5%,
6/15/51
.................
2,250,000
2,341,768
b
Signature
Preparatory,
Revenue,
144A,
2021
A,
5%,
6/15/56
.................
2,465,000
2,557,738
b
UHF
RISE
Student
Housing
LLC,
Revenue,
144A,
2021
A-2,
5.35%,
7/01/40
.....
3,000,000
2,923,667
b
UHF
RISE
Student
Housing
LLC,
Revenue,
144A,
2021
B,
5.25%,
7/01/61
.......
2,000,000
1,981,103
b
UMA
Education,
Inc.,
Revenue,
144A,
2019
A,
Refunding,
5%,
10/01/34
.........
8,970,000
10,152,135
b
UMA
Education,
Inc.,
Revenue,
144A,
2019
A,
Refunding,
5%,
10/01/39
.........
8,500,000
9,522,429
b
WFCS
Holdings
II
LLC,
Revenue,
144A,
2021
A-1,
5%,
1/01/56
...............
1,865,000
1,955,780
b,f
WV
2020
Holdings
LLC
Obligated
Group,
Revenue,
144A,
2020
A-1,
Mandatory
Put,
3.5%,
12/01/35
..................................................
2,000,000
1,910,837
b,f
WV
2020
Holdings
LLC
Obligated
Group,
Revenue,
144A,
2020
A-2,
Mandatory
Put,
4%,
12/01/35
...................................................
18,000,000
17,222,189
Wisconsin
Health
&
Educational
Facilities
Authority
,
Chiara
Communities,
Inc.,
Revenue,
2018
C,
6%,
7/01/28
...................
175,000
132,314
Chiara
Communities,
Inc.,
Revenue,
2018
C,
6.5%,
7/01/33
..................
300,000
216,305
Chiara
Communities,
Inc.,
Revenue,
2018
C,
7%,
7/01/43
...................
1,000,000
662,051
Chiara
Communities,
Inc.,
Revenue,
2018
C,
7.5%,
7/01/53
..................
5,750,000
3,856,184
HOPE
Christian
Schools
Obligated
Group,
Revenue,
2021,
4%,
12/01/41
........
850,000
863,935
HOPE
Christian
Schools
Obligated
Group,
Revenue,
2021,
4%,
12/01/51
........
1,000,000
1,007,700
HOPE
Christian
Schools
Obligated
Group,
Revenue,
2021,
4%,
12/01/56
........
1,000,000
1,005,541
St.
John's
Communities,
Inc.
Obligated
Group,
Revenue,
2015
B,
Refunding,
5%,
9/15/45
........................................................
3,500,000
3,577,458
St.
John's
Communities,
Inc.
Obligated
Group,
Revenue,
2018
A,
Pre-Refunded,
5%,
9/15/45
........................................................
3,500,000
3,706,825
158,775,325
U.S.
Territories
10.5%
District
of
Columbia
1.7%
District
of
Columbia
,
Tobacco
Settlement
Financing
Corp.,
Revenue,
2001,
6.5%,
5/15/33
...........
6,770,000
7,278,937
Tobacco
Settlement
Financing
Corp.,
Revenue,
2002,
Zero
Cpn.,
6/15/46
........
175,000,000
39,256,140
Metropolitan
Washington
Airports
Authority
,
Dulles
Toll
Road
,
Revenue,
Second
Lien
,
2009
C
,
Pre-Refunded
,
AGMC
Insured
,
6.5
%
,
10/01/41
.....................
60,145,000
73,251,420
119,786,497
Pacific
Islands
0.1%
Northern
Mariana
Island
Ports
Authority
,
Revenue
,
1998
A
,
6.6
%
,
3/15/28
.........
9,025,000
9,005,042
Puerto
Rico
8.7%
Children's
Trust
Fund
,
Revenue,
5.5%,
5/15/39
.............................................
9,500,000
9,749,327
Revenue,
2002,
5.625%,
5/15/43
......................................
2,500,000
2,547,375
d
Commonwealth
of
Puerto
Rico
,
GO
,
A-PSA
,
Refunding
,
8
%
,
7/01/35
.............
42,205,000
38,037,278
GDB
Debt
Recovery
Authority
of
Puerto
Rico
,
7.5
%
,
8/20/40
...................
46,582,014
43,787,093
b
Puerto
Rico
Commonwealth
Aqueduct
&
Sewer
Authority
,
Revenue,
Senior
Lien,
144A,
2020
A,
Refunding,
5%,
7/01/30
................
22,000,000
26,112,319
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
137
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
U.S.
Territories
(continued)
Puerto
Rico
(continued)
b
Puerto
Rico
Commonwealth
Aqueduct
&
Sewer
Authority,
(continued)
Revenue,
Senior
Lien,
144A,
2020
A,
Refunding,
5%,
7/01/35
................
$
20,000,000
$
23,459,292
Revenue,
Senior
Lien,
144A,
2020
A,
Refunding,
5%,
7/01/47
................
30,000,000
34,014,021
d
Puerto
Rico
Electric
Power
Authority
,
Revenue,
2013
A
RSA-1,
7.25%,
7/01/30
................................
25,000,000
26,624,987
Revenue,
2013
A
RSA-1,
6.75%,
7/01/36
................................
29,750,000
31,534,991
Revenue,
2013
A
RSA-1,
7%,
7/01/43
..................................
5,000,000
5,312,498
Revenue,
A-4-RSA-1
2016
A-4,
10%,
7/01/19
.............................
5,500,000
5,967,500
Revenue,
B-2-RSA-1
2016
B-4,
10%,
7/01/19
............................
5,500,000
5,967,500
Revenue,
E-1-RSA-1,
10%,
1/01/21
....................................
6,000,000
6,510,000
Revenue,
E-2-RSA-1,
10%,
7/01/21
....................................
6,000,000
6,510,000
Revenue,
E-3-RSA-1,
10%,
1/01/22
....................................
1,989,500
2,158,608
Revenue,
E-4-RSA-1,
10%,
7/01/22
....................................
1,989,499
2,180,988
Revenue,
XX-RSA-1,
5.75%,
7/01/36
...................................
23,620,000
24,653,375
Revenue,
XX-RSA-1,
5.25%,
7/01/40
...................................
10,895,000
11,289,944
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue,
2007
N,
Refunding,
AGMC
Insured,
5.25%,
7/01/36
................
700,000
731,416
Revenue,
L,
Refunding,
AMBAC
Insured,
5.25%,
7/01/38
....................
9,080,000
9,242,708
Revenue,
L,
Refunding,
AGMC
Insured,
5.25%,
7/01/41
.....................
7,125,000
7,412,068
Puerto
Rico
Industrial
Tourist
Educational
Medical
&
Environmental
Control
Facilities
Financing
Authority
,
AES
Puerto
Rico
LP
,
Revenue
,
2000
A
,
6.625
%
,
6/01/26
.....
16,835,000
17,424,225
Puerto
Rico
Infrastructure
Financing
Authority
,
Special
Tax
,
2005
C
,
Refunding
,
AMBAC
Insured
,
5.5
%
,
7/01/27
..............................................
27,500,000
28,505,430
Puerto
Rico
Sales
Tax
Financing
Corp.
,
Sales
Tax,
Revenue,
A-1,
4.55%,
7/01/40
................................
393,000
435,373
Sales
Tax,
Revenue,
A-1,
4.75%,
7/01/53
................................
33,780,000
37,358,815
Sales
Tax,
Revenue,
A-1,
5%,
7/01/58
..................................
23,600,000
26,466,267
Sales
Tax,
Revenue,
A-1,
Zero
Cpn.,
7/01/46
.............................
141,421,000
45,942,182
Sales
Tax,
Revenue,
A-1,
Zero
Cpn.,
7/01/51
.............................
82,259,000
19,362,691
Sales
Tax,
Revenue,
A-2,
4.329%,
7/01/40
...............................
40,819,000
44,698,189
Sales
Tax,
Revenue,
A-2,
4.784%,
7/01/58
...............................
44,364,000
49,066,114
593,062,574
Total
U.S.
Territories
....................................................................
721,854,113
Total
Municipal
Bonds
(Cost
$6,158,949,179)
...................................
6,674,495,527
Total
Long
Term
Investments
(Cost
$6,310,245,417)
.............................
6,825,383,915
a
a
a
a
a
Short
Term
Investments
0.3%
Municipal
Bonds
0.3%
Colorado
0.1%
h
City
&
County
of
Denver
,
COP
,
2008
A-3
,
Refunding
,
SPA
JPMorgan
Chase
Bank
NA
,
Daily
VRDN
and
Put
,
0.06
%
,
12/01/31
...............................
3,400,000
3,400,000
Maryland
0.0%
†
h
County
of
Montgomery
,
GO
,
2017
E
,
SPA
US
Bank
NA
,
Daily
VRDN
and
Put
,
0.06
%
,
11/01/37
........................................................
2,400,000
2,400,000
New
York
0.1%
h
New
York
City
Transitional
Finance
Authority
,
Future
Tax
Secured
,
Revenue
,
2019
B-4
,
SPA
JPMorgan
Chase
Bank
NA
,
Daily
VRDN
and
Put
,
0.08
%
,
8/01/42
..........
10,000,000
10,000,000
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
138
s
Short
Term
Investments
(continued)
a
a
Principal
Amount
a
Value
Municipal
Bonds
(continued)
North
Carolina
0.1%
h
Charlotte-Mecklenburg
Hospital
Authority
(The)
,
Atrium
Health
Obligated
Group
,
Revenue
,
2007
B
,
Refunding
,
SPA
JPMorgan
Chase
Bank
NA
,
Daily
VRDN
and
Put
,
0.06
%
,
1/15/38
...................................................
$
7,600,000
$
7,600,000
Total
Municipal
Bonds
(Cost
$23,400,000)
......................................
23,400,000
Total
Short
Term
Investments
(Cost
$23,400,000
)
................................
23,400,000
a
Total
Investments
(Cost
$6,333,645,417)
99.9%
..................................
$6,848,783,915
Other
Assets,
less
Liabilities
0.1%
.............................................
3,773,868
Net
Assets
100.0%
...........................................................
$6,852,557,783
See
Abbreviations
on
page
196
.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
b
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
February
28,
2022,
the
aggregate
value
of
these
securities
was
$1,619,556,981,
representing
23.6%
of
net
assets.
c
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).
d
See
Note
7
regarding
credit
risk
and
defaulted
securities.
e
A
portion
or
all
of
the
security
purchased
on
a
delayed
delivery
basis.
See
Note
1(b).
f
The
maturity
date
shown
represents
the
mandatory
put
date.
g
Fair
valued
using
significant
unobservable
inputs.
See
Note
13
regarding
fair
value
measurements.
h
Variable
rate
demand
notes
(VRDNs)
are
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.
Unless
otherwise
noted,
the
coupon
rate
is
determined
based
on
factors
including
supply
and
demand,
underlying
credit,
tax
treatment,
and
current
short
term
rates.
The
coupon
rate
shown
represents
the
rate
at
period
end.
Franklin
Tax-Free
Trust
Financial
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Massachusetts
Tax-Free
Income
Fund
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accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
139
a
Year
Ended
February
28,
Year
Ended
February
28,
2019
b
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
................................
$11.84
$12.20
$11.47
$11.39
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.22
0.28
0.31
0.16
Net
realized
and
unrealized
gains
(losses)
........................
(0.36)
(0.37)
0.74
0.08
Total
from
investment
operations
.................................
(0.14)
(0.09)
1.05
0.24
Less
distributions
from:
Net
investment
income
.......................................
(0.22)
(0.27)
(0.32)
(0.16)
Net
asset
value,
end
of
year
....................................
$11.48
$11.84
$12.20
$11.47
Total
return
e
................................................
(1.24)%
(0.71)%
9.29%
2.12%
Ratios
to
average
net
assets
f
Expenses
g
.................................................
0.88%
0.86%
0.87%
0.86%
Net
investment
income
........................................
1.83%
2.31%
2.64%
2.88%
Supplemental
data
Net
assets,
end
of
year
(000’s)
..................................
$64,555
$58,926
$44,347
$20,086
Portfolio
turnover
rate
.........................................
21.84%
18.21%
12.59%
6.58%
a
For
the
year
ended
February
29.
b
For
the
period
September
10,
2018
(effective
date)
to
February
28,
2019.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Massachusetts
Tax-Free
Income
Fund
(continued)
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Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
140
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.83
$12.20
$11.46
$11.47
$11.63
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.24
0.30
0.33
0.35
0.35
Net
realized
and
unrealized
gains
(losses)
...........
(0.36)
(0.38)
0.75
(0.01)
(0.15)
Total
from
investment
operations
....................
(0.12)
(0.08)
1.08
0.34
0.20
Less
distributions
from:
Net
investment
income
..........................
(0.24)
(0.29)
(0.34)
(0.35)
(0.36)
Net
asset
value,
end
of
year
.......................
$11.47
$11.83
$12.20
$11.46
$11.47
Total
return
d
...................................
(1.09)%
(0.64)%
9.55%
2.98%
1.66%
Ratios
to
average
net
assets
Expenses
.....................................
0.73%
e
0.72%
e
0.72%
e
0.71%
e
0.68%
Net
investment
income
...........................
2.00%
2.48%
2.79%
3.03%
3.02%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$218,895
$245,351
$307,452
$314,235
$363,555
Portfolio
turnover
rate
............................
21.84%
18.21%
12.59%
6.58%
23.50%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Massachusetts
Tax-Free
Income
Fund
(continued)
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
141
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.98
$12.35
$11.60
$11.61
$11.77
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.17
0.23
0.27
0.28
0.29
Net
realized
and
unrealized
gains
(losses)
...........
(0.36)
(0.38)
0.76
(0.01)
(0.16)
Total
from
investment
operations
....................
(0.19)
(0.15)
1.03
0.27
0.13
Less
distributions
from:
Net
investment
income
..........................
(0.17)
(0.22)
(0.28)
(0.28)
(0.29)
Net
asset
value,
end
of
year
.......................
$11.62
$11.98
$12.35
$11.60
$11.61
Total
return
d
...................................
(1.54)%
(1.26)%
8.95%
2.37%
1.08%
Ratios
to
average
net
assets
Expenses
.....................................
1.27%
e
1.26%
e
1.27%
e
1.26%
e
1.23%
Net
investment
income
...........................
1.44%
1.90%
2.24%
2.48%
2.47%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$17,988
$27,111
$31,713
$33,253
$56,607
Portfolio
turnover
rate
............................
21.84%
18.21%
12.59%
6.58%
23.50%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Massachusetts
Tax-Free
Income
Fund
(continued)
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
142
a
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2022
2021
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.84
$12.20
$11.46
$11.48
$11.76
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.25
0.31
0.34
0.36
0.21
Net
realized
and
unrealized
gains
(losses)
...........
(0.35)
(0.36)
0.76
(0.02)
(0.28)
Total
from
investment
operations
....................
(0.10)
(0.05)
1.10
0.34
(0.07)
Less
distributions
from:
Net
investment
income
..........................
(0.26)
(0.31)
(0.36)
(0.36)
(0.21)
Net
asset
value,
end
of
year
.......................
$11.48
$11.84
$12.20
$11.46
$11.48
Total
return
e
...................................
(0.86)%
(0.50)%
9.69%
3.01%
(0.65)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
......
0.59%
0.58%
0.60%
0.59%
0.60%
Expenses
net
of
waiver
and
payments
by
affiliates
.......
0.58%
g
0.57%
g
0.58%
g
0.57%
g
0.55%
Net
investment
income
...........................
2.13%
2.60%
2.93%
3.17%
3.15%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$20,888
$16,909
$12,458
$1,284
$1,688
Portfolio
turnover
rate
............................
21.84%
18.21%
12.59%
6.58%
23.50%
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Massachusetts
Tax-Free
Income
Fund
(continued)
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
143
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.83
$12.20
$11.46
$11.48
$11.63
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.25
0.30
0.34
0.36
0.36
Net
realized
and
unrealized
gains
(losses)
...........
(0.36)
(0.37)
0.75
(0.02)
(0.14)
Total
from
investment
operations
....................
(0.11)
(0.07)
1.09
0.34
0.22
Less
distributions
from:
Net
investment
income
..........................
(0.25)
(0.30)
(0.35)
(0.36)
(0.37)
Net
asset
value,
end
of
year
.......................
$11.47
$11.83
$12.20
$11.46
$11.48
Total
return
....................................
(0.99)%
(0.54)%
9.65%
2.98%
1.84%
Ratios
to
average
net
assets
Expenses
.....................................
0.63%
d
0.61%
d
0.62%
d
0.61%
d
0.58%
Net
investment
income
...........................
2.10%
2.55%
2.89%
3.13%
3.12%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$109,947
$106,533
$60,927
$50,814
$63,366
Portfolio
turnover
rate
............................
21.84%
18.21%
12.59%
6.58%
23.50%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments,
February
28,
2022
Franklin
Massachusetts
Tax-Free
Income
Fund
franklintempleton.com
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
144
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
92.9%
California
0.3%
California
Municipal
Finance
Authority
,
Revenue
,
2022
A-1
,
4.25
%
,
12/01/37
.......
$
1,200,000
$
1,204,049
Florida
0.2%
a
Capital
Trust
Agency,
Inc.
,
SHI
-
Lake
Osborne
LLC
,
Revenue
,
144A,
2021
A-1
,
3.68
%
,
1/01/57
.........................................................
750,000
671,375
Illinois
0.7%
b
Metropolitan
Pier
&
Exposition
Authority
,
Revenue
,
2022
A
,
Refunding
,
4
%
,
12/15/42
.
1,750,000
1,860,346
State
of
Illinois
,
GO,
2017
D,
5%,
11/01/26
...........................................
1,000,000
1,130,780
GO,
2018
A,
Refunding,
5%,
10/01/28
..................................
140,000
163,535
3,154,661
Massachusetts
85.9%
Acton
&
Boxborough
Regional
School
District
,
GO,
5%,
3/01/33
..................................................
2,095,000
2,553,922
GO,
3%,
3/01/34
..................................................
1,485,000
1,579,239
GO,
3%,
3/01/35
..................................................
2,130,000
2,254,339
Boston
Water
&
Sewer
Commission
,
Revenue,
Senior
Lien
,
2014
A
,
Pre-Refunded
,
4
%
,
11/01/28
.....................................................
4,400,000
4,719,761
City
of
Lowell
,
GO,
2020,
Refunding,
4%,
9/01/31
.....................................
2,000,000
2,302,779
GO,
2020,
Refunding,
4%,
9/01/33
.....................................
2,025,000
2,310,768
GO,
2020,
Refunding,
3%,
9/01/34
.....................................
1,000,000
1,049,310
City
of
Quincy
,
GO
,
2014
,
4
%
,
6/01/32
....................................
2,565,000
2,706,188
City
of
Worcester
,
GO
,
2020
A
,
3
%
,
2/01/42
................................
1,685,000
1,703,249
Commonwealth
of
Massachusetts
,
GO,
2018
A,
5%,
1/01/47
............................................
5,000,000
5,822,089
GO,
A,
5.25%,
4/01/42
..............................................
5,000,000
5,839,220
GO,
F,
4%,
11/01/29
................................................
6,000,000
6,119,549
Revenue,
2005,
Refunding,
AGMC,
NATL
Insured,
5.5%,
1/01/34
..............
11,900,000
15,635,302
Transportation
Fund,
Revenue,
2016
B,
4%,
6/01/45
.......................
7,175,000
7,810,227
Transportation
Fund,
Revenue,
2017
A,
5%,
6/01/47
.......................
5,000,000
5,776,400
Transportation
Fund,
Revenue,
2018
A,
5%,
6/01/48
.......................
5,000,000
5,850,421
Transportation
Fund,
Revenue,
2019
A,
5%,
6/01/49
.......................
1,925,000
2,283,885
Massachusetts
Bay
Transportation
Authority
,
Sales
Tax,
Revenue,
2020
B-1,
Refunding,
5%,
7/01/50
.....................
5,000,000
5,913,158
Sales
Tax,
Revenue,
2021
A-1,
Refunding,
4%,
7/01/37
.....................
3,000,000
3,492,383
Sales
Tax,
Revenue,
A,
5%,
7/01/40
....................................
5,000,000
5,538,489
Sales
Tax,
Revenue,
A-1,
Refunding,
5.25%,
7/01/30
.......................
4,000,000
5,088,477
Sales
Tax,
Revenue,
Senior
Lien,
B,
Refunding,
5%,
7/01/33
.................
2,500,000
2,776,784
Massachusetts
Clean
Water
Trust
(The)
,
Revenue,
1999
A,
5.75%,
8/01/29
.....................................
250,000
251,061
Revenue,
2000-6,
5.5%,
8/01/30
......................................
130,000
130,525
Revenue,
7,
5.125%,
2/01/31
.........................................
130,000
130,486
Massachusetts
Development
Finance
Agency
,
Babson
College,
Revenue,
2022,
Refunding,
4%,
10/01/44
...................
700,000
807,491
Bentley
University,
Revenue,
2021
A,
Refunding,
4%,
7/01/37
................
1,000,000
1,140,425
Beth
Israel
Lahey
Health
Obligated
Group,
Revenue,
2015
F,
Refunding,
5%,
8/15/32
2,975,000
3,301,497
Beth
Israel
Lahey
Health
Obligated
Group,
Revenue,
2015
F,
Refunding,
5%,
8/15/34
5,000,000
5,538,088
Beth
Israel
Lahey
Health
Obligated
Group,
Revenue,
2016
I,
Refunding,
5%,
7/01/34
1,500,000
1,693,829
Brandeis
University,
Revenue,
2019
S-1,
Refunding,
5%,
10/01/38
.............
2,410,000
2,884,452
Broad
Institute,
Inc.
(The),
Revenue,
2017,
Refunding,
4%,
4/01/41
............
5,000,000
5,530,463
Dana-Farber
Cancer
Institute
Obligated
Group,
Revenue,
2016
N,
5%,
12/01/46
..
6,890,000
7,810,739
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2021
C,
4%,
11/01/46
.......................................................
1,250,000
1,387,254
Loomis
Obligated
Group,
Revenue,
2021,
4%,
1/01/41
......................
435,000
468,177
Loomis
Obligated
Group,
Revenue,
2021,
4%,
1/01/51
......................
300,000
318,205
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Massachusetts
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
145
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Massachusetts
(continued)
Massachusetts
Development
Finance
Agency,
(continued)
a,b
Loomis
Obligated
Group,
Revenue,
144A,
2022,
Refunding,
4%,
1/01/26
........
$
1,000,000
$
1,049,851
a,b
Loomis
Obligated
Group,
Revenue,
144A,
2022,
Refunding,
4%,
1/01/31
........
870,000
921,408
a,b
Loomis
Obligated
Group,
Revenue,
144A,
2022,
Refunding,
4%,
1/01/41
........
485,000
502,521
a,b
Loomis
Obligated
Group,
Revenue,
144A,
2022,
Refunding,
4%,
1/01/51
........
520,000
530,770
Mass
General
Brigham,
Inc.,
Revenue,
2016
Q,
Refunding,
5%,
7/01/34
.........
5,000,000
5,713,275
Mass
General
Brigham,
Inc.,
Revenue,
2017
S-1,
Refunding,
5%,
7/01/33
.......
1,880,000
2,217,895
Mass
General
Brigham,
Inc.,
Revenue,
2017
S-1,
Refunding,
4%,
7/01/41
.......
7,500,000
8,281,396
Mass
General
Brigham,
Inc.,
Revenue,
2020
A-2,
Refunding,
4%,
7/01/41
.......
1,000,000
1,125,575
Merrimack
College,
Revenue,
2021
B,
4%,
7/01/42
........................
475,000
518,659
Merrimack
College,
Revenue,
2021
B,
4%,
7/01/50
........................
3,650,000
3,941,387
Northeastern
University,
Revenue,
2014
A,
5%,
3/01/44
.....................
5,000,000
5,341,836
President
&
Trustees
of
Williams
College,
Revenue,
2017
S,
4%,
7/01/46
........
9,550,000
10,490,139
President
and
Fellows
of
Harvard
College,
Revenue,
2016
A,
Refunding,
5%,
7/15/33
5,000,000
5,725,790
Seven
Hills
Foundation
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
9/01/34
.
735,000
821,759
Seven
Hills
Foundation
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
9/01/39
.
750,000
821,976
Seven
Hills
Foundation
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
9/01/41
.
500,000
543,641
Seven
Hills
Foundation
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
9/01/48
.
1,750,000
1,872,764
Southcoast
Health
System
Obligated
Group,
Revenue,
2021
G,
Refunding,
4%,
7/01/46
........................................................
4,545,000
5,116,741
Southcoast
Health
System
Obligated
Group,
Revenue,
2021
G,
Refunding,
5%,
7/01/50
........................................................
6,590,000
8,025,734
Springfield
College,
Revenue,
2021
B,
Refunding,
4%,
6/01/50
................
2,695,000
2,827,793
Suffolk
University,
Revenue,
2021,
4%,
7/01/46
...........................
3,150,000
3,391,022
Suffolk
University,
Revenue,
2021,
4%,
7/01/51
...........................
7,250,000
7,767,869
Trustees
of
Boston
College,
Revenue,
2017
T,
Refunding,
5%,
7/01/42
..........
3,750,000
4,369,746
Trustees
of
Boston
University,
Revenue,
BB-1,
4%,
10/01/46
.................
5,000,000
5,483,212
Wellesley
College,
Revenue,
2018
L,
Refunding,
4%,
7/01/44
.................
6,160,000
6,813,434
Wheaton
College,
Revenue,
2021
I,
5%,
1/01/53
..........................
3,000,000
3,504,996
Woods
Hole
Oceanographic
Institution,
Revenue,
2018,
Refunding,
5%,
6/01/35
..
1,200,000
1,432,812
Woods
Hole
Oceanographic
Institution,
Revenue,
2018,
Refunding,
5%,
6/01/36
..
1,000,000
1,193,125
Worcester
Polytechnic
Institute,
Revenue,
2012,
4%,
9/01/49
.................
4,825,000
4,887,372
Worcester
Polytechnic
Institute,
Revenue,
2017,
Refunding,
5%,
9/01/42
........
1,090,000
1,273,666
Worcester
Polytechnic
Institute,
Revenue,
2019,
4%,
9/01/44
.................
1,350,000
1,487,111
Massachusetts
Educational
Financing
Authority
,
Revenue,
2017
B,
Refunding,
4.25%,
7/01/46
.............................
2,500,000
2,565,682
Revenue,
2021
C,
3%,
7/01/51
........................................
3,000,000
2,761,678
Massachusetts
Health
&
Educational
Facilities
Authority
,
Trustees
of
Boston
College
,
Revenue
,
M2
,
5.5
%
,
6/01/35
.........................................
8,600,000
11,544,189
Massachusetts
Housing
Finance
Agency
,
Revenue,
2009
C,
Refunding,
5.125%,
12/01/39
...........................
1,045,000
1,046,334
Revenue,
2009
C,
Refunding,
5.35%,
12/01/49
...........................
2,770,000
2,773,716
Revenue,
2012
F,
3.15%,
12/01/32
.....................................
105,000
105,260
Revenue,
2012
F,
3.45%,
12/01/37
.....................................
45,000
45,154
Revenue,
214,
GNMA
Insured,
2.55%,
12/01/34
...........................
1,000,000
1,010,924
Revenue,
214,
GNMA
Insured,
2.8%,
12/01/39
............................
2,860,000
2,903,343
Revenue,
A,
3.25%,
12/01/27
.........................................
4,000,000
4,035,708
Revenue,
A,
3.5%,
12/01/31
..........................................
5,805,000
5,849,803
Massachusetts
Municipal
Wholesale
Electric
Co.
,
Revenue,
2015
A,
4%,
7/01/46
........................................
2,000,000
2,270,984
Revenue,
2015
A,
4%,
7/01/51
........................................
2,250,000
2,533,786
Massachusetts
Port
Authority
,
Revenue,
2019
B,
5%,
7/01/44
........................................
5,000,000
6,049,908
Revenue,
2019
B,
5%,
7/01/49
........................................
5,000,000
6,013,326
Revenue,
2021
B,
Refunding,
5%,
7/01/40
...............................
1,215,000
1,478,554
Massachusetts
School
Building
Authority
,
Revenue,
2018
B,
5.25%,
2/15/48
.....................................
2,315,000
2,757,880
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Massachusetts
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
146
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Massachusetts
(continued)
Massachusetts
School
Building
Authority,
(continued)
Revenue,
2019
A,
5%,
2/15/44
........................................
$
1,000,000
$
1,203,486
Revenue,
Senior
Lien,
2016
C,
Refunding,
5%,
11/15/34
....................
5,000,000
5,763,626
Massachusetts
State
College
Building
Authority
,
Revenue
,
2017
D
,
Refunding
,
4
%
,
5/01/38
.........................................................
4,350,000
4,824,466
Massachusetts
Transportation
Trust
Fund
,
Metropolitan
Highway
System,
Revenue,
2019
B-1,
Refunding,
5%,
1/01/37
......
1,015,000
1,227,394
Metropolitan
Highway
System,
Revenue,
Senior
Lien,
2019
A,
Refunding,
5%,
1/01/37
........................................................
2,750,000
3,294,111
Massachusetts
Water
Resources
Authority
,
Revenue,
2016
C,
Pre-Refunded,
5%,
8/01/40
............................
5,000,000
5,767,044
Revenue,
2018
B,
5%,
8/01/43
........................................
4,000,000
4,763,584
Revenue,
2020
B,
5%,
8/01/36
........................................
1,500,000
1,865,512
Revenue,
B,
Refunding,
AGMC
Insured,
5.25%,
8/01/28
.....................
5,490,000
6,734,027
Revenue,
B,
5%,
8/01/40
............................................
1,140,000
1,332,367
Revenue,
B,
5%,
8/01/42
............................................
3,145,000
3,670,769
Springfield
Water
&
Sewer
Commission
,
Revenue
,
2017
C
,
5
%
,
4/15/37
..........
1,260,000
1,465,877
Town
of
Belmont
,
GO
,
2019
,
4
%
,
3/15/45
.................................
3,020,000
3,375,714
Town
of
Braintree
,
GO,
Refunding,
5%,
5/15/27
.........................................
2,000,000
2,356,369
GO,
2019,
3%,
6/01/35
.............................................
1,765,000
1,841,527
Town
of
Natick
,
GO
,
2018
,
4
%
,
7/15/35
...................................
4,970,000
5,591,319
Town
of
Plymouth
,
GO
,
2017
,
4
%
,
5/01/47
.................................
5,000,000
5,496,431
University
of
Massachusetts
Building
Authority
,
Revenue,
Senior
Lien,
1,
Pre-Refunded,
5%,
11/01/44
......................
3,240,000
3,556,533
Revenue,
Senior
Lien,
1,
Pre-Refunded,
5%,
11/01/44
......................
760,000
835,090
Revenue,
Senior
Lien,
2017-1,
5.25%,
11/01/42
...........................
5,000,000
5,933,754
Revenue,
Senior
Lien,
2019-1,
Refunding,
5%,
5/01/39
.....................
5,000,000
6,059,861
371,218,996
New
Jersey
0.6%
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue,
2019
BB,
4%,
6/15/50
.......................................
250,000
265,554
Revenue,
2020
AA,
4%,
6/15/35
.......................................
250,000
274,636
Revenue,
2020
AA,
5%,
6/15/38
.......................................
1,000,000
1,175,069
Revenue,
2020
AA,
4%,
6/15/45
.......................................
475,000
511,150
Revenue,
2020
AA,
3%,
6/15/50
.......................................
500,000
465,704
2,692,113
New
York
0.8%
Metropolitan
Transportation
Authority
,
Revenue,
2020
D,
4%,
11/15/47
.......................................
500,000
537,122
Revenue,
2021
A-1,
4%,
11/15/46
.....................................
800,000
863,601
Revenue,
2021
A-2,
4%,
11/15/42
.....................................
1,700,000
1,850,035
3,250,758
South
Carolina
0.6%
South
Carolina
Jobs-Economic
Development
Authority
,
a
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
800,000
748,600
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
800,000
747,765
a
South
Carolina
State
Housing
Finance
&
Development
Authority
,
Garden
Oaks
LP
,
Revenue
,
144A,
2021
A
,
4.2
%
,
12/01/39
................................
1,000,000
931,070
2,427,435
Tennessee
0.1%
c
Tennessee
Energy
Acquisition
Corp.
,
Revenue
,
2021
A
,
Mandatory
Put
,
5
%
,
11/01/31
500,000
601,869
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Massachusetts
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
147
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Texas
0.6%
a
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
$
1,100,000
$
1,020,451
Lake
Houston
Redevelopment
Authority
,
City
of
Houston
Reinvestment
Zone
No.
10
,
Revenue
,
2021
,
Refunding
,
3
%
,
9/01/37
.................................
300,000
294,970
a
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
A-2
,
5
%
,
12/01/52
............
1,400,000
1,404,515
2,719,936
Washington
0.2%
a
Washington
State
Housing
Finance
Commission
,
Madison
at
Rivers
Edge
Apartments
LLC
,
Revenue
,
144A,
2021
A
,
3.65
%
,
1/01/37
............................
800,000
748,395
Wisconsin
0.8%
a
Public
Finance
Authority
,
Revenue,
144A,
2022,
B-1,
4%,
12/28/44
................................
800,000
770,811
Affordable
Housing
Preservation
Corp.
(The),
Revenue,
144A,
2021,
5.25%,
12/01/22
.......................................................
2,900,000
2,886,658
3,657,469
U.S.
Territories
2.1%
Puerto
Rico
2.1%
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue,
2007
N,
Refunding,
AGMC
Insured,
5.25%,
7/01/34
................
5,000,000
5,238,585
Revenue,
L,
Refunding,
NATL
Insured,
5.25%,
7/01/35
......................
2,700,000
2,856,452
Revenue,
L,
Refunding,
AGMC
Insured,
5.25%,
7/01/41
.....................
250,000
260,073
Puerto
Rico
Industrial
Tourist
Educational
Medical
&
Environmental
Control
Facilities
Financing
Authority
,
Hospital
Auxilio
Mutuo
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
7/01/31
..
440,000
538,218
Hospital
Auxilio
Mutuo
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
7/01/39
..
200,000
219,596
9,112,924
Total
U.S.
Territories
....................................................................
9,112,924
Total
Municipal
Bonds
(Cost
$389,645,526)
.....................................
401,459,980
a
a
a
a
Short
Term
Investments
0.1%
Municipal
Bonds
0.1%
Massachusetts
0.1%
d
Massachusetts
Health
&
Educational
Facilities
Authority
,
President
and
Fellows
of
Harvard
College
,
Revenue
,
R
,
Daily
VRDN
and
Put
,
0.01
%
,
11/01/49
...........
525,000
525,000
Total
Municipal
Bonds
(Cost
$525,000)
.........................................
525,000
Total
Short
Term
Investments
(Cost
$525,000
)
..................................
525,000
a
Total
Investments
(Cost
$390,170,526)
93.0%
...................................
$401,984,980
Other
Assets,
less
Liabilities
7.0%
.............................................
30,288,944
Net
Assets
100.0%
...........................................................
$432,273,924
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Massachusetts
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
148
See
Abbreviations
on
page
196
.
a
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
February
28,
2022,
the
aggregate
value
of
these
securities
was
$12,186,425,
representing
2.8%
of
net
assets.
b
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).
c
The
maturity
date
shown
represents
the
mandatory
put
date.
d
Variable
rate
demand
notes
(VRDNs)
are
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.
Unless
otherwise
noted,
the
coupon
rate
is
determined
based
on
factors
including
supply
and
demand,
underlying
credit,
tax
treatment,
and
current
short
term
rates.
The
coupon
rate
shown
represents
the
rate
at
period
end.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Municipal
Green
Bond
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
149
a
Year
Ended
February
28,
2022
Year
Ended
February
28,
2021
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
........................................................
$10.27
$10.41
Income
from
investment
operations
b
:
Net
investment
income
c
..............................................................
0.10
0.08
Net
realized
and
unrealized
gains
(losses)
................................................
(0.15)
(0.14)
Total
from
investment
operations
.........................................................
(0.05)
(0.06)
Less
distributions
from:
Net
investment
income
...............................................................
(0.11)
(0.08)
Net
asset
value,
end
of
year
............................................................
$10.11
$10.27
Total
return
d
........................................................................
(0.56)%
(0.53)%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
...........................................
3.02%
3.39%
Expenses
net
of
waiver
and
payments
by
affiliates
f
...........................................
0.64%
0.46%
Net
investment
income
................................................................
1.01%
1.29%
Supplemental
data
Net
assets,
end
of
year
(000’s)
..........................................................
$1,541
$872
Portfolio
turnover
rate
.................................................................
1.90%
7.50%
a
For
the
period
July
24,
2020
(effective
date)
to
February
28,
2021.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Municipal
Green
Bond
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
150
a
Year
Ended
February
28,
2022
Year
Ended
February
28,
2021
a
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
........................................................
$10.27
$10.41
Income
from
investment
operations
b
:
Net
investment
income
c
..............................................................
0.08
0.08
Net
realized
and
unrealized
gains
(losses)
................................................
(0.16)
(0.14)
Total
from
investment
operations
.........................................................
(0.08)
(0.06)
Less
distributions
from:
Net
investment
income
...............................................................
(0.08)
(0.08)
Net
asset
value,
end
of
year
............................................................
$10.11
$10.27
Total
return
d
........................................................................
(0.83)%
(0.53)%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
...........................................
3.26%
3.31%
Expenses
net
of
waiver
and
payments
by
affiliates
f
...........................................
0.89%
0.46%
Net
investment
income
................................................................
0.76%
1.32%
Supplemental
data
Net
assets,
end
of
year
(000’s)
..........................................................
$145
$210
Portfolio
turnover
rate
.................................................................
1.90%
7.50%
a
For
the
period
July
24,
2020
(effective
date)
to
February
28,
2021.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Municipal
Green
Bond
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
151
a
Year
Ended
February
28,
2022
Year
Ended
February
28,
2021
a
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
........................................................
$10.28
$10.41
Income
from
investment
operations
b
:
Net
investment
income
c
..............................................................
0.12
0.09
Net
realized
and
unrealized
gains
(losses)
................................................
(0.16)
(0.13)
Total
from
investment
operations
.........................................................
(0.04)
(0.04)
Less
distributions
from:
Net
investment
income
...............................................................
(0.13)
(0.09)
Net
asset
value,
end
of
year
............................................................
$10.11
$10.28
Total
return
d
........................................................................
(0.35)%
(0.53)%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
...........................................
3.20%
5.66%
Expenses
net
of
waiver
and
payments
by
affiliates
f
...........................................
0.46%
0.46%
Net
investment
income
................................................................
1.19%
1.36%
Supplemental
data
Net
assets,
end
of
year
(000’s)
..........................................................
$5
$5
Portfolio
turnover
rate
.................................................................
1.90%
7.50%
a
For
the
period
July
24,
2020
(effective
date)
to
February
28,
2021.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Municipal
Green
Bond
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
152
a
Year
Ended
February
28,
Year
Ended
February
28,
2020
a,b
2022
2021
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
............................................
$10.27
$10.35
$10.00
Income
from
investment
operations
c
:
Net
investment
income
d
..................................................
0.12
0.14
0.03
Net
realized
and
unrealized
gains
(losses)
....................................
(0.16)
(0.06)
0.35
Total
from
investment
operations
.............................................
(0.04)
0.08
0.38
Less
distributions
from:
Net
investment
income
...................................................
(0.12)
(0.16)
(0.03)
Net
asset
value,
end
of
year
................................................
$10.11
$10.27
$10.35
Total
return
e
............................................................
(0.39)%
0.62%
3.84%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
...............................
2.83
%
3.61%
3.25%
Expenses
net
of
waiver
and
payments
by
affiliates
................................
0.46%
g
0.46%
g
0.46%
Net
investment
income
....................................................
1.19%
1.39%
0.81%
Supplemental
data
Net
assets,
end
of
year
(000’s)
..............................................
$8,847
$6,312
$5,175
Portfolio
turnover
rate
.....................................................
1.90%
7.50%
—%
a
For
the
year
ended
February
29.
b
For
the
period
ended
October
1,
2019
(commencement
of
operations)
to
February
29,
2020.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments,
February
28,
2022
Franklin
Municipal
Green
Bond
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
153
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
83.3%
Arizona
2.8%
Arizona
State
University
,
Revenue
,
2016
B
,
5
%
,
7/01/42
......................
$
150,000
$
170,926
City
of
Phoenix
Civic
Improvement
Corp.
,
Water
System
,
Revenue,
Junior
Lien
,
2020
B
,
5
%
,
7/01/44
....................................................
100,000
121,921
292,847
Arkansas
1.1%
Central
Arkansas
Water
,
Revenue
,
2020
C
,
Refunding
,
4
%
,
10/01/33
.............
100,000
111,665
California
18.6%
a
California
Community
Choice
Financing
Authority
,
Revenue
,
2021
B-1
,
Mandatory
Put
,
4
%
,
8/01/31
......................................................
150,000
171,041
California
Housing
Finance
Agency
,
Lakeside
Drive
Senior
Housing
LP
,
Revenue
,
2019
N
,
FNMA
Insured
,
2.35
%
,
12/01/35
....................................
96,565
95,108
California
Infrastructure
&
Economic
Development
Bank
,
a
California
Academy
of
Sciences,
Revenue,
2018
B,
Refunding,
Mandatory
Put,
0.55%,
8/01/24
..................................................
100,000
100,107
California
Science
Center
Foundation,
Revenue,
2021
B,
4%,
5/01/46
..........
100,000
110,980
California
State
Teachers'
Retirement
System,
Revenue,
2019,
5%,
8/01/49
......
180,000
213,595
b
California
Public
Finance
Authority
,
Kendal
at
Sonoma
Obligated
Group
,
Revenue
,
144A,
2021
B-3
,
Refunding
,
2.125
%
,
11/15/27
............................
50,000
50,014
City
of
Foster
City
,
GO
,
2020
,
4
%
,
8/01/32
.................................
100,000
111,352
City
of
San
Francisco
,
Public
Utilities
Commission
Water
,
Revenue
,
2020
A
,
4
%
,
11/01/50
.....................................................
100,000
112,432
Los
Angeles
County
Metropolitan
Transportation
Authority
,
Revenue
,
2019
A
,
5
%
,
7/01/44
.........................................................
150,000
179,331
Port
of
Los
Angeles
,
Revenue
,
2019
C-1
,
Refunding
,
5
%
,
8/01/25
...............
60,000
66,772
Sacramento
Municipal
Utility
District
,
Revenue
,
2020
H
,
5
%
,
8/15/30
.............
100,000
126,464
San
Francisco
Bay
Area
Rapid
Transit
District
,
GO
,
2019
F-1
,
3
%
,
8/01/36
........
150,000
157,034
Southern
California
Public
Power
Authority
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
7/01/38
150,000
171,753
Three
Rivers
Levee
Improvement
Authority
,
Special
Tax
,
2021
A
,
Refunding
,
4
%
,
9/01/32
.........................................................
100,000
110,203
Transbay
Joint
Powers
Authority
,
Transbay
Redevelopment
Project
Tax
Increment
Re-
Development
Project
,
Tax
Allocation,
Senior
Lien
,
2020
A
,
5
%
,
10/01/34
.........
150,000
184,022
1,960,208
Colorado
3.3%
Board
of
Water
Commissioners
City
&
County
of
Denver
(The)
,
Revenue
,
2017
A
,
5
%
,
9/15/47
.........................................................
150,000
174,407
University
of
Colorado
,
Revenue
,
2021
A
,
Refunding
,
5
%
,
6/01/27
...............
150,000
177,001
351,408
Connecticut
1.1%
Connecticut
State
Health
&
Educational
Facilities
Authority
,
Wesleyan
University
,
Revenue
,
I
,
4
%
,
7/01/31
.............................................
100,000
118,773
Florida
3.4%
Babcock
Ranch
Community
Independent
Special
District
,
Assessment
Area
3A
,
Special
Assessment
,
2020
,
2.5
%
,
5/01/25
.....................................
85,000
85,319
City
of
Tampa
,
Special
Assessment
,
2018
,
5
%
,
5/01/36
.......................
135,000
161,278
County
of
Palm
Beach
,
Water
&
Sewer
,
Revenue
,
2019
,
Refunding
,
4
%
,
10/01/31
...
100,000
116,042
362,639
Georgia
1.1%
Private
Colleges
&
Universities
Authority
,
Emory
University
,
Revenue
,
2019
B
,
Refunding
,
5
%
,
9/01/48
.............................................
100,000
120,236
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Municipal
Green
Bond
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
154
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Illinois
1.9%
Illinois
Finance
Authority
,
State
of
Illinois
Water
Revolving
Fund
-
Clean
Water
Program
,
Revenue
,
2020
,
4
%
,
7/01/37
.........................................
$
100,000
$
116,048
Village
of
Villa
Park
,
Garden
Station
Redevelopment
Area
,
Tax
Allocation
,
2021
,
Zero
Cpn
.,
12/31/38
....................................................
100,000
81,981
198,029
Louisiana
1.0%
Terrebonne
Levee
&
Conservation
District
,
Revenue
,
2020
B
,
Refunding
,
4
%
,
6/01/40
100,000
109,691
Maine
2.6%
City
of
Portland
,
General
Airport
,
Revenue
,
2019
,
Refunding
,
4
%
,
1/01/35
.........
245,000
272,160
Maryland
1.0%
Washington
Suburban
Sanitary
Commission
,
Revenue,
Second
Series
,
2019
B
,
3
%
,
6/01/35
.........................................................
100,000
105,524
Massachusetts
1.0%
Massachusetts
Housing
Finance
Agency
,
Revenue
,
2019
C-1
,
2.65
%
,
12/01/34
.....
100,000
101,019
Michigan
1.0%
a
Michigan
Strategic
Fund
,
Graphic
Packaging
International
LLC
,
Revenue
,
2021
,
Mandatory
Put
,
4
%
,
10/01/26
.........................................
100,000
107,530
Minnesota
1.0%
City
of
Minneapolis
,
GO
,
2019
,
3
%
,
12/01/40
...............................
100,000
103,622
Mississippi
0.9%
b
Mississippi
Development
Bank
,
County
of
Jackson
,
Revenue
,
144A,
2021
,
3.625
%
,
11/01/36
........................................................
100,000
92,094
New
Jersey
4.0%
New
Jersey
Educational
Facilities
Authority
,
Stevens
Institute
of
Technology
,
Revenue
,
2020
A
,
5
%
,
7/01/32
................................................
225,000
268,359
Newark
Board
of
Education
,
GO
,
2021
,
Refunding
,
BAM
Insured
,
5
%
,
7/15/30
......
120,000
148,129
416,488
New
Mexico
1.1%
City
of
Santa
Fe
,
Wastewater
Utility
System
,
Revenue
,
2019
,
BAM
Insured
,
5
%
,
6/01/29
.........................................................
100,000
120,039
New
York
12.8%
Battery
Park
City
Authority
,
Revenue,
Senior
Lien
,
2019
A
,
5
%
,
11/01/49
..........
100,000
121,515
Metropolitan
Transportation
Authority
,
Revenue,
2017
B,
Refunding,
5%,
11/15/24
..............................
150,000
164,659
Revenue,
2017
B,
Refunding,
5%,
11/15/28
..............................
110,000
130,018
Revenue,
2020
A-1,
AGMC
Insured,
4%,
11/15/41
.........................
100,000
110,452
Dedicated
Tax
Fund,
Revenue,
2017
B-2,
Refunding,
4%,
11/15/32
............
160,000
176,376
New
York
Liberty
Development
Corp.
,
Revenue
,
2021
A
,
Refunding
,
2.5
%
,
11/15/36
.
100,000
94,744
New
York
State
Dormitory
Authority
,
Cornell
University
,
Revenue
,
2019
D
,
5
%
,
7/01/35
100,000
136,454
New
York
State
Housing
Finance
Agency
,
Revenue,
2019
N,
FNMA
Insured,
2.6%,
11/01/34
.........................
100,000
99,641
Revenue,
2019
P,
2%,
5/01/28
........................................
100,000
99,771
Trust
for
Cultural
Resources
of
The
City
of
New
York
(The)
,
Whitney
Museum
of
American
Art
,
Revenue
,
2021
,
Refunding
,
5
%
,
7/01/31
......................
170,000
216,117
1,349,747
North
Dakota
0.9%
b
County
of
Grand
Forks
,
Red
River
Biorefinery
LLC
,
Revenue
,
144A,
2021
A
,
7
%
,
12/15/43
........................................................
100,000
94,291
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Municipal
Green
Bond
Fund
(continued)
franklintempleton.com
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an
integral
part
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these
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statements.
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155
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Ohio
2.8%
American
Municipal
Power,
Inc.
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
2/15/29
........
$
100,000
$
120,849
State
of
Ohio
,
GO,
2019
A,
4%,
3/01/30
............................................
100,000
117,618
GO,
2020
B,
4%,
3/01/24
............................................
50,000
52,794
291,261
Oregon
1.7%
Port
of
Portland
,
Airport
,
Revenue
,
Twenty-Seven
A
,
5
%
,
7/01/36
................
150,000
180,078
Pennsylvania
2.3%
School
District
of
Philadelphia
(The)
,
GO,
2019
B,
5%,
9/01/29
............................................
100,000
121,179
GO,
2021
B,
5%,
9/01/31
............................................
100,000
124,951
246,130
Rhode
Island
2.0%
Rhode
Island
Housing
and
Mortgage
Finance
Corp.
,
Revenue
,
2019
1-B
,
FHA
Insured
,
2.75
%
,
10/01/34
...................................................
150,000
153,084
Rhode
Island
Infrastructure
Bank
,
City
of
East
Providence
,
Revenue
,
2020
A
,
4
%
,
10/01/27
........................................................
50,000
56,200
209,284
Utah
1.9%
City
of
Spanish
Fork
City
,
Sewer
,
Revenue
,
2020
,
BAM
Insured
,
5
%
,
9/01/26
.......
170,000
196,039
Vermont
2.1%
Vermont
Educational
&
Health
Buildings
Financing
Agency
,
University
of
Vermont
Health
Network
Obligated
Group
,
Revenue
,
2016
B
,
5
%
,
12/01/38
.............
195,000
219,686
Virginia
1.7%
City
of
Hampton
,
GO,
2020
A,
5%,
9/01/27
............................................
50,000
59,326
GO,
2020
A,
4%,
9/01/31
............................................
100,000
118,388
177,714
Washington
3.0%
Central
Puget
Sound
Regional
Transit
Authority
,
Sales
&
Rental
Car
Taxes,
Revenue,
2015
S-1,
Pre-Refunded,
5%,
11/01/27
.....
50,000
56,488
Sales
&
Rental
Car
Taxes,
Revenue,
2015
S-1,
Pre-Refunded,
5%,
11/01/32
.....
100,000
112,977
FYI
Properties
,
State
of
Washington
Consolidated
Technology
Services
,
Revenue
,
2019
,
Refunding
,
5
%
,
6/01/24
........................................
135,000
145,721
315,186
Wisconsin
3.5%
Milwaukee
Metropolitan
Sewerage
District
,
GO
,
2020
A
,
3
%
,
10/01/35
............
100,000
106,522
Public
Finance
Authority
,
RED
River
Valley
Alliance
LLC
,
Revenue
,
2021
,
4
%
,
9/30/51
250,000
261,544
368,066
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Municipal
Green
Bond
Fund
(continued)
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156
s
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
U.S.
Territories
1.7%
District
of
Columbia
1.7%
District
of
Columbia
,
Water
&
Sewer
Authority
,
Revenue,
Sub.
Lien
,
2019
A
,
5
%
,
10/01/44
.....................................................
$
150,000
$
181,673
Total
Municipal
Bonds
(Cost
$8,894,723)
.......................................
8,773,127
a
a
a
a
a
Total
Investments
(Cost
$8,894,723)
83.3%
.....................................
$8,773,127
Other
Assets,
less
Liabilities
16.7%
............................................
1,764,231
Net
Assets
100.0%
...........................................................
$10,537,358
See
Abbreviations
on
page
196
.
a
The
maturity
date
shown
represents
the
mandatory
put
date.
b
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
February
28,
2022,
the
aggregate
value
of
these
securities
was
$236,399,
representing
2.2%
of
net
assets.
Franklin
Tax-Free
Trust
Financial
Highlights
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New
Jersey
Tax-Free
Income
Fund
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157
0
a
Year
Ended
February
28,
Year
Ended
February
28,
2019
b
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
................................
$11.46
$11.77
$11.14
$11.10
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.27
0.29
0.30
0.17
Net
realized
and
unrealized
gains
(losses)
........................
(0.28)
(0.32)
0.65
0.04
Total
from
investment
operations
.................................
(0.01
)
(0.03)
0.95
0.21
Less
distributions
from:
Net
investment
income
.......................................
(0.27)
(0.28)
(0.32)
(0.17)
Net
asset
value,
end
of
year
....................................
$11.18
$11.46
$11.77
$11.14
Total
return
e
................................................
(0.18)%
(0.18)%
8.61%
1.97%
Ratios
to
average
net
assets
f
Expenses
g
.................................................
0.82%
0.82%
0.82%
0.83%
Net
investment
income
........................................
2.30%
2.50%
2.67%
3.28%
Supplemental
data
Net
assets,
end
of
year
(000’s)
..................................
$141,419
$118,815
$109,130
$55,866
Portfolio
turnover
rate
.........................................
7.69%
15.41%
17.99%
13.26%
a
For
the
year
ended
February
29.
b
For
the
period
September
10,
2018
(effective
date)
to
February
28,
2019.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
New
Jersey
Tax-Free
Income
Fund
(continued)
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The
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these
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statements.
158
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.45
$11.76
$11.13
$11.11
$11.45
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.28
0.30
0.32
0.38
0.39
Net
realized
and
unrealized
gains
(losses)
...........
(0.29)
(0.31)
0.64
0.03
(0.31)
Total
from
investment
operations
....................
(0.01)
(0.01)
0.96
0.41
0.08
Less
distributions
from:
Net
investment
income
..........................
(0.28)
(0.30)
(0.33)
(0.39)
(0.42)
Net
asset
value,
end
of
year
.......................
$11.16
$11.45
$11.76
$11.13
$11.11
Total
return
d
...................................
(0.11)%
(0.03)%
8.78%
3.78%
0.68%
Ratios
to
average
net
assets
Expenses
.....................................
0.67%
e
0.67%
e
0.67%
e
0.68%
e
0.67%
Net
investment
income
...........................
2.45%
2.67%
2.82%
3.43%
3.46%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$464,256
$516,756
$584,519
$596,817
$650,527
Portfolio
turnover
rate
............................
7.69%
15.41%
17.99%
13.26%
12.70%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
New
Jersey
Tax-Free
Income
Fund
(continued)
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The
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notes
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part
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these
financial
statements.
Annual
Report
159
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.60
$11.92
$11.28
$11.26
$11.60
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.22
0.24
0.26
0.32
0.33
Net
realized
and
unrealized
gains
(losses)
...........
(0.29)
(0.32)
0.65
0.03
(0.32)
Total
from
investment
operations
....................
(0.07)
(0.08)
0.91
0.35
0.01
Less
distributions
from:
Net
investment
income
..........................
(0.22)
(0.24)
(0.27)
(0.33)
(0.35)
Net
asset
value,
end
of
year
.......................
$11.31
$11.60
$11.92
$11.28
$11.26
Total
return
d
...................................
(0.66)%
(0.66)%
8.19%
3.15%
0.11%
Ratios
to
average
net
assets
Expenses
.....................................
1.22%
e
1.22%
e
1.22%
e
1.23%
e
1.22%
Net
investment
income
...........................
1.87%
2.10%
2.27%
2.88%
2.91%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$58,632
$87,934
$117,600
$125,982
$188,806
Portfolio
turnover
rate
............................
7.69%
15.41%
17.99%
13.26%
12.70%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
New
Jersey
Tax-Free
Income
Fund
(continued)
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The
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notes
are
an
integral
part
of
these
financial
statements.
160
a
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2022
2021
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.46
$11.77
$11.14
$11.12
$11.37
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.30
0.32
0.34
0.40
0.25
Net
realized
and
unrealized
gains
(losses)
...........
(0.29)
(0.31)
0.64
0.03
(0.26)
Total
from
investment
operations
....................
0.01
0.01
0.98
0.43
(0.01)
Less
distributions
from:
Net
investment
income
..........................
(0.30)
(0.32)
(0.35)
(0.41)
(0.24)
Net
asset
value,
end
of
year
.......................
$11.17
$11.46
$11.77
$11.14
$11.12
Total
return
e
...................................
0.03%
0.11%
8.92%
3.91%
(0.11)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
......
0.53%
0.53%
0.53%
0.54%
0.54%
Expenses
net
of
waiver
and
payments
by
affiliates
.......
0.53%
g
0.53%
g
0.53%
g,h
0.54%
g,h
0.53%
Net
investment
income
...........................
2.59%
2.80%
2.96%
3.57%
3.60%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$35,920
$32,012
$33,376
$20,459
$19,936
Portfolio
turnover
rate
............................
7.69%
15.41%
17.99%
13.26%
12.70%
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
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New
Jersey
Tax-Free
Income
Fund
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The
accompanying
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are
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part
of
these
financial
statements.
Annual
Report
161
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.46
$11.77
$11.14
$11.12
$11.46
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.30
0.31
0.33
0.39
0.40
Net
realized
and
unrealized
gains
(losses)
...........
(0.29)
(0.31)
0.64
0.03
(0.31)
Total
from
investment
operations
....................
0.01
—
0.97
0.42
0.09
Less
distributions
from:
Net
investment
income
..........................
(0.30)
(0.31)
(0.34)
(0.40)
(0.43)
Net
asset
value,
end
of
year
.......................
$11.17
$11.46
$11.77
$11.14
$11.12
Total
return
....................................
(0.01)%
0.07%
8.88%
3.87%
0.77%
Ratios
to
average
net
assets
Expenses
.....................................
0.57%
d
0.57%
d
0.57%
d
0.58%
d
0.57%
Net
investment
income
...........................
2.55%
2.76%
2.92%
3.53%
3.56%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$103,449
$94,236
$81,747
$75,607
$79,286
Portfolio
turnover
rate
............................
7.69%
15.41%
17.99%
13.26%
12.70%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments,
February
28,
2022
Franklin
New
Jersey
Tax-Free
Income
Fund
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
162
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
97.8%
California
0.2%
California
Municipal
Finance
Authority
,
Revenue
,
2022
A-1
,
4.25
%
,
12/01/37
.......
$
1,300,000
$
1,304,386
Delaware
2.6%
Delaware
River
&
Bay
Authority
,
Revenue,
2012
A,
Refunding,
5%,
1/01/42
...............................
6,000,000
6,203,047
Revenue,
2019,
Refunding,
4%,
1/01/44
.................................
13,500,000
15,091,465
21,294,512
Florida
0.6%
Capital
Trust
Agency,
Inc.
,
Kingdom
Development
Obligated
Group,
Revenue,
2021
A-1,
3.75%,
12/01/36
....
4,536,000
4,450,043
a
SHI
-
Lake
Osborne
LLC,
Revenue,
144A,
2021
A-1,
3.68%,
1/01/57
...........
850,000
760,892
5,210,935
Georgia
0.3%
a
Development
Authority
of
Rockdale
County
,
AHPC
Terraces
at
Fieldstone
LLC
,
Revenue
,
144A,
2021
A-1
,
3.5
%
,
12/01/36
...............................
2,650,000
2,475,224
New
Jersey
77.2%
Atlantic
County
Improvement
Authority
(The)
,
Stockton
University
,
Revenue
,
2021
A
,
AGMC
Insured
,
4
%
,
7/01/47
..........................................
1,000,000
1,115,470
Bergen
County
Improvement
Authority
(The)
,
Borough
of
Ridgefield,
Revenue,
2020,
4%,
10/15/42
.......................
5,205,000
6,003,202
County
of
Bergen,
Revenue,
2019,
4%,
10/15/37
..........................
3,600,000
4,134,562
County
of
Bergen,
Revenue,
2019,
4%,
10/15/38
..........................
3,745,000
4,293,617
County
of
Bergen,
Revenue,
2019,
4%,
10/15/39
..........................
3,000,000
3,433,633
County
of
Middlesex
,
COP
,
1998
,
NATL
Insured
,
Zero
Cpn
.,
6/15/24
.............
1,000,000
966,608
Cumberland
County
Improvement
Authority
(The)
,
Revenue,
2014,
Pre-Refunded,
AGMC
Insured,
5%,
9/01/39
.................
2,000,000
2,186,322
County
of
Cumberland,
Revenue,
2019,
BAM
Insured,
5%,
1/15/36
............
955,000
1,120,434
County
of
Cumberland,
Revenue,
2019,
BAM
Insured,
5%,
1/15/37
............
1,000,000
1,172,144
County
of
Cumberland,
Revenue,
2019,
BAM
Insured,
5%,
1/15/38
............
1,020,000
1,193,971
County
of
Cumberland,
Revenue,
2019,
BAM
Insured,
5%,
1/15/39
............
1,070,000
1,250,844
County
of
Cumberland,
Revenue,
2019,
BAM
Insured,
5%,
1/15/44
............
5,725,000
6,648,970
Essex
County
Improvement
Authority
,
Friends
of
TEAM
Academy
Charter
School
Obligated
Group,
Revenue,
2021,
4%,
6/15/38
........................................................
1,645,000
1,797,834
Friends
of
TEAM
Academy
Charter
School
Obligated
Group,
Revenue,
2021,
4%,
6/15/51
........................................................
2,700,000
2,889,809
Friends
of
TEAM
Academy
Charter
School
Obligated
Group,
Revenue,
2021,
4%,
6/15/56
........................................................
4,925,000
5,246,673
Gloucester
County
Improvement
Authority
(The)
,
Rowan
University,
Revenue,
2015
C,
AGMC
Insured,
4%,
7/01/42
.............
2,500,000
2,662,412
Rowan
University,
Revenue,
2015
C,
5%,
7/01/44
.........................
3,500,000
3,863,314
Rowan
University,
Revenue,
2019,
4%,
7/01/37
...........................
750,000
844,300
Rowan
University,
Revenue,
2019,
4%,
7/01/38
...........................
700,000
786,692
Rowan
University,
Revenue,
2019,
4%,
7/01/39
...........................
600,000
673,202
Rowan
University,
Revenue,
2019,
5%,
7/01/44
...........................
4,925,000
5,877,401
Rowan
University,
Revenue,
2019,
4%,
7/01/48
...........................
5,250,000
5,792,155
Hudson
County
Improvement
Authority
,
Revenue,
2019,
Refunding,
4%,
1/01/40
.................................
1,000,000
1,126,946
County
of
Hudson,
Revenue,
2016,
5%,
5/01/46
...........................
6,000,000
6,715,796
County
of
Hudson,
Revenue,
2020,
4%,
10/01/46
..........................
5,000,000
5,674,612
County
of
Hudson,
Revenue,
2020,
4%,
10/01/51
..........................
5,000,000
5,649,407
Mercer
County
Improvement
Authority
(The)
,
County
of
Mercer,
Revenue,
2019,
Refunding,
4%,
4/01/31
...................
1,545,000
1,768,151
County
of
Mercer,
Revenue,
2019,
Refunding,
4%,
4/01/33
...................
1,500,000
1,706,578
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
New
Jersey
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
163
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
New
Jersey
(continued)
Monmouth
County
Improvement
Authority
(The)
,
Revenue,
2019
A,
4%,
8/01/32
........................................
$
300,000
$
347,157
Revenue,
2019
A,
4%,
8/01/33
........................................
350,000
404,390
Revenue,
2019
A,
4%,
8/01/34
........................................
525,000
605,632
Revenue,
2019
A,
4%,
8/01/35
........................................
525,000
605,063
Revenue,
2019
A,
4%,
8/01/36
........................................
500,000
575,720
Revenue,
2019
A,
4%,
8/01/37
........................................
275,000
316,451
Revenue,
2019
A,
4%,
8/01/38
........................................
225,000
258,475
Revenue,
2019
A,
4%,
8/01/39
........................................
400,000
458,748
Revenue,
2019
B,
4%,
12/01/34
.......................................
750,000
869,703
Revenue,
2019
B,
4%,
12/01/36
.......................................
750,000
868,010
Revenue,
2019
B,
4%,
12/01/37
.......................................
500,000
578,518
Revenue,
2019
B,
4%,
12/01/38
.......................................
750,000
866,246
Revenue,
2019
B,
4%,
12/01/39
.......................................
600,000
691,800
New
Brunswick
Parking
Authority
,
Revenue
,
2016
A
,
Refunding
,
BAM
Insured
,
5
%
,
9/01/39
.........................................................
5,000,000
5,672,505
New
Jersey
Economic
Development
Authority
,
Revenue,
2021
QQQ,
4%,
6/15/39
.....................................
2,500,000
2,720,920
Revenue,
2021
QQQ,
4%,
6/15/46
.....................................
1,250,000
1,342,433
Revenue,
2021
QQQ,
4%,
6/15/50
.....................................
1,250,000
1,337,459
Lutheran
Social
Ministries
at
Crane's
Mill,
Inc.,
Revenue,
2018,
Refunding,
5%,
1/01/34
........................................................
1,500,000
1,662,968
Lutheran
Social
Ministries
at
Crane's
Mill,
Inc.,
Revenue,
2018,
Refunding,
5%,
1/01/39
........................................................
1,250,000
1,378,539
Lutheran
Social
Ministries
at
Crane's
Mill,
Inc.,
Revenue,
2018,
Refunding,
5%,
1/01/49
........................................................
3,000,000
3,283,106
Middlesex
Water
Co.,
Revenue,
2019,
4%,
8/01/59
........................
6,200,000
6,600,091
Middlesex
Water
Co.,
Revenue,
2019,
5%,
8/01/59
........................
3,750,000
4,320,040
Provident
Group-Kean
Properties
LLC,
Revenue,
2017
A,
5%,
7/01/32
..........
640,000
691,750
Provident
Group-Kean
Properties
LLC,
Revenue,
2017
A,
5%,
7/01/37
..........
600,000
646,286
Provident
Group-Kean
Properties
LLC,
Revenue,
2017
A,
5%,
7/01/47
..........
1,500,000
1,598,442
Provident
Group-Montclair
Properties
LLC,
Revenue,
2017,
Refunding,
AGMC
Insured,
5%,
6/01/42
..............................................
6,000,000
6,963,692
Provident
Group-Rowan
Properties
LLC,
Revenue,
A,
5%,
1/01/48
.............
7,000,000
7,247,789
Rutgers
State
University
of
New
Jersey
(The),
Revenue,
2013,
Pre-Refunded,
5%,
6/15/38
........................................................
5,000,000
5,255,718
State
of
New
Jersey
Cigarette
Tax,
Revenue,
2012,
Pre-Refunded,
5%,
6/15/28
...
3,000,000
3,037,837
State
of
New
Jersey
Cigarette
Tax,
Revenue,
2012,
Pre-Refunded,
5%,
6/15/29
...
1,000,000
1,012,612
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2005
N-1,
Refunding,
NATL
Insured,
5.5%,
9/01/27
........................................
8,660,000
10,264,668
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2015
WW,
5%,
6/15/37
4,760,000
5,231,650
New
Jersey
Educational
Facilities
Authority
,
Kean
University,
Revenue,
2015
H,
Refunding,
AGMC
Insured,
5%,
7/01/34
......
2,205,000
2,435,211
Kean
University,
Revenue,
2015
H,
Refunding,
AGMC
Insured,
5%,
7/01/35
......
5,000,000
5,517,798
Kean
University,
Revenue,
2017
D,
Refunding,
BAM
Insured,
4%,
9/01/38
.......
1,150,000
1,252,052
Montclair
State
University,
Inc.,
Revenue,
2014
A,
5%,
7/01/39
................
5,000,000
5,382,597
Montclair
State
University,
Inc.,
Revenue,
2014
A,
5%,
7/01/44
................
16,380,000
17,642,575
Montclair
State
University,
Inc.,
Revenue,
2015
D,
Refunding,
5%,
7/01/35
.......
2,245,000
2,485,174
Montclair
State
University,
Inc.,
Revenue,
2015
D,
Refunding,
5%,
7/01/36
.......
1,210,000
1,338,873
Montclair
State
University,
Inc.,
Revenue,
2016
B,
Refunding,
5%,
7/01/34
.......
1,325,000
1,503,331
Ramapo
College
of
New
Jersey,
Revenue,
2012
B,
Refunding,
5%,
7/01/37
......
1,000,000
1,011,714
Ramapo
College
of
New
Jersey,
Revenue,
2012
B,
Refunding,
5%,
7/01/42
......
1,000,000
1,011,841
Ramapo
College
of
New
Jersey,
Revenue,
2017
A,
Refunding,
AGMC
Insured,
5%,
7/01/35
........................................................
3,955,000
4,577,394
Seton
Hall
University,
Revenue,
2015
C,
Refunding,
5%,
7/01/34
..............
400,000
430,981
Seton
Hall
University,
Revenue,
2015
C,
Refunding,
5%,
7/01/37
..............
1,300,000
1,397,698
Seton
Hall
University,
Revenue,
2017
D,
Refunding,
5%,
7/01/42
..............
3,945,000
4,380,158
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
New
Jersey
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
164
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
New
Jersey
(continued)
New
Jersey
Educational
Facilities
Authority,
(continued)
Seton
Hall
University,
Revenue,
2020
C,
AGMC
Insured,
3.25%,
7/01/49
........
$
1,150,000
$
1,178,526
Seton
Hall
University,
Revenue,
2020
C,
AGMC
Insured,
4%,
7/01/50
...........
1,850,000
2,028,035
Stevens
Institute
of
Technology,
Revenue,
1998-1,
ETM,
5%,
7/01/28
...........
540,000
602,617
Stevens
Institute
of
Technology,
Revenue,
2017
A,
Refunding,
5%,
7/01/36
......
1,600,000
1,810,648
Stevens
Institute
of
Technology,
Revenue,
2017
A,
Refunding,
5%,
7/01/42
......
9,310,000
10,444,876
Stevens
Institute
of
Technology,
Revenue,
2017
A,
Refunding,
5%,
7/01/47
......
4,085,000
4,555,265
Stevens
Institute
of
Technology,
Revenue,
2020
A,
5%,
7/01/45
...............
4,000,000
4,658,182
Stevens
Institute
of
Technology,
Revenue,
2020
A,
4%,
7/01/50
...............
11,640,000
12,490,436
Trustees
of
Princeton
University
(The),
Revenue,
2014
A,
5%,
7/01/44
..........
15,000,000
16,235,350
New
Jersey
Health
Care
Facilities
Financing
Authority
,
AHS
Hospital
Corp.,
Revenue,
2008
A,
5%,
7/01/27
........................
220,000
220,841
AHS
Hospital
Corp.,
Revenue,
2016,
Refunding,
4%,
7/01/41
.................
10,000,000
10,850,592
AtlantiCare
Health
System
Obligated
Group,
Revenue,
2021,
4%,
7/01/37
.......
750,000
868,268
AtlantiCare
Health
System
Obligated
Group,
Revenue,
2021,
3%,
7/01/46
.......
1,000,000
976,101
Hackensack
Meridian
Health
Obligated
Group,
Revenue,
2011,
Refunding,
5%,
7/01/27
........................................................
2,500,000
2,535,894
Hackensack
Meridian
Health
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
7/01/37
........................................................
3,000,000
3,488,529
Hackensack
Meridian
Health
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
7/01/38
........................................................
3,000,000
3,483,558
Hackensack
Meridian
Health
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
7/01/39
........................................................
5,000,000
5,800,413
Hunterdon
Medical
Center
Obligated
Group,
Revenue,
2014
A,
Pre-Refunded,
5%,
7/01/45
........................................................
2,650,000
2,878,452
Inspira
Health
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
7/01/46
......
18,500,000
20,865,893
Inspira
Health
Obligated
Group,
Revenue,
2017
A,
5%,
7/01/42
...............
8,000,000
9,249,846
Inspira
Health
Obligated
Group,
Revenue,
2017
A,
4%,
7/01/47
...............
8,700,000
9,332,197
RWJ
Barnabas
Health
Obligated
Group,
Revenue,
2013
A,
5.5%,
7/01/43
.......
4,000,000
4,220,757
RWJ
Barnabas
Health
Obligated
Group,
Revenue,
2014
A,
5%,
7/01/43
.........
3,650,000
3,943,596
RWJ
Barnabas
Health
Obligated
Group,
Revenue,
2014
A,
Refunding,
5%,
7/01/44
15,530,000
16,771,749
RWJ
Barnabas
Health
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
7/01/43
10,000,000
11,368,099
St.
Luke's
Hospital
Obligated
Group,
Revenue,
2013,
Pre-Refunded,
5%,
8/15/31
..
2,935,000
3,102,344
St.
Luke's
Hospital
Obligated
Group,
Revenue,
2013,
Pre-Refunded,
5%,
8/15/34
..
1,500,000
1,585,525
St.
Peter's
University
Hospital
Obligated
Group,
Revenue,
2011,
Refunding,
6%,
7/01/26
........................................................
1,000,000
1,002,616
St.
Peter's
University
Hospital
Obligated
Group,
Revenue,
2011,
Refunding,
6.25%,
7/01/35
........................................................
3,400,000
3,409,923
Valley
Health
System
Obligated
Group,
Revenue,
2019,
4%,
7/01/35
...........
1,000,000
1,131,871
Valley
Health
System
Obligated
Group,
Revenue,
2019,
4%,
7/01/36
...........
1,750,000
1,979,012
Valley
Health
System
Obligated
Group,
Revenue,
2019,
4%,
7/01/38
...........
2,000,000
2,256,368
Valley
Health
System
Obligated
Group,
Revenue,
2019,
4%,
7/01/39
...........
2,200,000
2,477,934
Valley
Health
System
Obligated
Group,
Revenue,
2019,
4%,
7/01/44
...........
11,000,000
12,250,164
New
Jersey
Higher
Education
Student
Assistance
Authority
,
Revenue,
2011-1,
5.875%,
12/01/33
....................................
2,140,000
2,142,369
Revenue,
2019
B,
Refunding,
3.25%,
12/01/39
............................
10,000,000
10,234,476
Revenue,
2020
C,
Refunding,
4.25%,
12/01/50
...........................
1,750,000
1,768,182
Revenue,
2021
B,
Refunding,
5%,
12/01/28
..............................
1,450,000
1,709,067
Revenue,
2021
B,
Refunding,
5%,
12/01/29
..............................
1,415,000
1,691,843
Revenue,
Senior
Lien,
2020
A,
Refunding,
3.5%,
12/01/39
...................
7,000,000
7,183,633
New
Jersey
Housing
&
Mortgage
Finance
Agency
,
Revenue,
2018
A,
Refunding,
3.95%,
11/01/43
............................
1,100,000
1,174,026
Revenue,
2019
A,
Refunding,
3%,
11/01/44
..............................
510,000
520,964
Revenue,
2019
C,
Refunding,
3.95%,
10/01/44
...........................
3,955,000
4,174,590
Revenue,
2020
E,
Refunding,
2.05%,
10/01/35
............................
4,445,000
4,168,728
Revenue,
2020
E,
Refunding,
2.25%,
10/01/40
............................
8,895,000
8,261,208
Revenue,
2020
E,
Refunding,
2.4%,
10/01/45
.............................
3,555,000
3,239,361
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
New
Jersey
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
165
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
New
Jersey
(continued)
New
Jersey
Housing
&
Mortgage
Finance
Agency,
(continued)
Revenue,
2020
E,
Refunding,
2.45%,
10/01/50
............................
$
2,665,000
$
2,557,201
New
Jersey
Institute
of
Technology
,
Revenue
,
2015
A
,
5
%
,
7/01/45
..............
6,000,000
6,623,096
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue,
2006
C,
AGMC
Insured,
Zero
Cpn
.,
12/15/33
.....................
10,000,000
7,281,370
Revenue,
2009
A,
Zero
Cpn
.,
12/15/32
..................................
10,000,000
7,247,632
Revenue,
2010
A,
Zero
Cpn
.,
12/15/29
..................................
5,000,000
4,033,611
Revenue,
2013
AA,
5.25%,
6/15/31
....................................
10,000,000
10,451,259
Revenue,
2019
BB,
4%,
6/15/44
.......................................
6,000,000
6,402,106
Revenue,
2020
AA,
4%,
6/15/45
.......................................
9,700,000
10,438,222
Revenue,
2021
A,
Refunding,
4%,
6/15/36
...............................
2,000,000
2,201,286
Revenue,
2022
BB,
4%,
6/15/50
.......................................
3,500,000
3,762,692
New
Jersey
Turnpike
Authority
,
Revenue,
2017
A,
5%,
1/01/34
........................................
6,505,000
7,474,557
Revenue,
2017
A,
5%,
1/01/35
........................................
3,495,000
4,014,176
Revenue,
2017
B,
Refunding,
5%,
1/01/40
...............................
15,245,000
17,802,870
Revenue,
2017
G,
Refunding,
4%,
1/01/43
...............................
5,000,000
5,446,488
Revenue,
2019
A,
5%,
1/01/48
........................................
15,500,000
18,203,826
Revenue,
2021
A,
4%,
1/01/51
........................................
3,000,000
3,331,495
Newark
Board
of
Education
,
GO,
2021,
Refunding,
BAM
Insured,
3%,
7/15/39
..........................
700,000
720,834
GO,
2021,
Refunding,
BAM
Insured,
3%,
7/15/40
..........................
750,000
770,890
GO,
2021,
Refunding,
BAM
Insured,
3%,
7/15/41
..........................
750,000
769,620
GO,
2021,
Refunding,
BAM
Insured,
3%,
7/15/42
..........................
700,000
716,699
Newark
Housing
Authority
Scholarship
Foundation
A
New
Jersey
Non
Profit
Corp.
(The)
,
Port
Authority
of
New
York
&
New
Jersey
,
Revenue
,
2017
,
Refunding
,
4
%
,
1/01/37
.........................................................
20,745,000
22,409,539
Somerset
County
Improvement
Authority
,
Revenue
,
2020
,
Refunding
,
4
%
,
9/01/50
..
10,115,000
11,517,591
South
Jersey
Transportation
Authority
,
Revenue
,
2020
A
,
5
%
,
11/01/45
...........
5,750,000
6,700,778
State
of
New
Jersey
,
GO,
2020
A,
4%,
6/01/31
............................................
2,300,000
2,660,897
GO,
2020
A,
3%,
6/01/32
............................................
3,400,000
3,590,910
GO,
2020
A,
4%,
6/01/32
............................................
2,200,000
2,561,678
620,691,121
New
York
5.8%
Port
Authority
of
New
York
&
New
Jersey
,
Revenue,
179,
5%,
12/01/38
.........................................
15,000,000
15,963,105
Revenue,
2014,
4%,
9/01/43
.........................................
3,000,000
3,256,391
Revenue,
2017,
4%,
11/01/49
........................................
9,000,000
9,875,313
Revenue,
Two
Hundred
Sixteenth,
4%,
9/01/45
...........................
5,000,000
5,501,337
Revenue,
First
Series,
171st,
5%,
7/15/30
...............................
12,200,000
12,243,907
46,840,053
Pennsylvania
7.7%
Delaware
River
Joint
Toll
Bridge
Commission
,
Revenue,
2017,
5%,
7/01/42
.........................................
19,500,000
22,535,791
Revenue,
2019
A,
5%,
7/01/33
........................................
100,000
122,080
Revenue,
2019
A,
5%,
7/01/34
........................................
150,000
182,729
Revenue,
2019
A,
5%,
7/01/35
........................................
150,000
182,101
Revenue,
2019
A,
5%,
7/01/36
........................................
150,000
181,828
Revenue,
2019
A,
5%,
7/01/37
........................................
150,000
181,477
Revenue,
2019
A,
5%,
7/01/38
........................................
150,000
181,179
Revenue,
2019
A,
5%,
7/01/39
........................................
150,000
180,888
Revenue,
2019
A,
5%,
7/01/44
........................................
760,000
910,962
Revenue,
2019
B,
Refunding,
5%,
7/01/31
...............................
850,000
1,040,270
Revenue,
2019
B,
Refunding,
5%,
7/01/32
...............................
1,000,000
1,221,868
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
New
Jersey
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
166
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Pennsylvania
(continued)
Delaware
River
Port
Authority
,
Revenue,
2013,
5%,
1/01/37
.........................................
$
10,000,000
$
10,635,914
Revenue,
2018
A,
5%,
1/01/37
........................................
3,285,000
3,951,294
Revenue,
2018
A,
5%,
1/01/38
........................................
5,050,000
6,064,903
Revenue,
2018
A,
5%,
1/01/39
........................................
2,300,000
2,758,060
Revenue,
2018
A,
5%,
1/01/40
........................................
9,565,000
11,454,490
61,785,834
South
Carolina
0.5%
South
Carolina
Jobs-Economic
Development
Authority
,
a
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
1,500,000
1,403,626
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
1,500,000
1,402,059
a
South
Carolina
State
Housing
Finance
&
Development
Authority
,
Garden
Oaks
LP
,
Revenue
,
144A,
2021
A
,
4.2
%
,
12/01/39
................................
1,000,000
931,070
3,736,755
Texas
0.6%
a
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
2,100,000
1,948,135
a
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
A-2
,
5
%
,
12/01/52
............
2,700,000
2,708,707
4,656,842
Washington
0.2%
a
Washington
State
Housing
Finance
Commission
,
Madison
at
Rivers
Edge
Apartments
LLC
,
Revenue
,
144A,
2021
A
,
3.65
%
,
1/01/37
............................
1,500,000
1,403,241
Wisconsin
0.9%
a
Public
Finance
Authority
,
Revenue,
144A,
2022,
B-1,
4%,
12/28/44
................................
1,500,000
1,445,272
Affordable
Housing
Preservation
Corp.
(The),
Revenue,
144A,
2021,
5.25%,
12/01/22
.......................................................
5,500,000
5,474,696
6,919,968
U.S.
Territories
1.2%
Puerto
Rico
1.2%
Puerto
Rico
Electric
Power
Authority
,
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/32
....................
1,200,000
1,270,779
b
Revenue,
WW-RSA-1,
5.5%,
7/01/38
...................................
3,950,000
4,108,000
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue,
2007
N,
Refunding,
AGMC
Insured,
5.25%,
7/01/36
................
300,000
313,464
Revenue,
L,
Refunding,
NATL
Insured,
5.25%,
7/01/35
......................
1,000,000
1,057,945
Revenue,
L,
Refunding,
AGMC
Insured,
5.25%,
7/01/41
.....................
2,700,000
2,808,784
9,558,972
Total
U.S.
Territories
....................................................................
9,558,972
Total
Municipal
Bonds
(Cost
$756,880,724)
.....................................
785,877,843
a
a
a
a
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
New
Jersey
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
167
L
Short
Term
Investments
0.3%
a
a
Principal
Amount
a
Value
Municipal
Bonds
0.3%
New
Jersey
0.3%
c
New
Jersey
Health
Care
Facilities
Financing
Authority
,
Virtua
Health
Obligated
Group
,
Revenue
,
2009
C
,
LOC
JPMorgan
Chase
Bank
NA
,
Daily
VRDN
and
Put
,
0.05
%
,
7/01/43
.........................................................
$
2,800,000
$
2,800,000
Total
Municipal
Bonds
(Cost
$2,800,000)
.......................................
2,800,000
Total
Short
Term
Investments
(Cost
$2,800,000
)
.................................
2,800,000
a
Total
Investments
(Cost
$759,680,724)
98.1%
...................................
$788,677,843
Other
Assets,
less
Liabilities
1.9%
.............................................
14,997,637
Net
Assets
100.0%
...........................................................
$803,675,480
See
Abbreviations
on
page
196
.
a
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
February
28,
2022,
the
aggregate
value
of
these
securities
was
$18,550,863,
representing
2.3%
of
net
assets.
b
See
Note
7
regarding
defaulted
securities.
c
Variable
rate
demand
notes
(VRDNs)
are
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.
Unless
otherwise
noted,
the
coupon
rate
is
determined
based
on
factors
including
supply
and
demand,
underlying
credit,
tax
treatment,
and
current
short
term
rates.
The
coupon
rate
shown
represents
the
rate
at
period
end.
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Assets
and
Liabilities
February
28,
2022
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
168
Franklin
Federal
Intermediate-
Term
Tax-Free
Income
Fund
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Franklin
High
Yield
Tax-Free
Income
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
.................................
$3,327,563,948
$1,363,572,066
$6,286,474,179
Cost
-
Controlled
affiliates
(Not
e
3f)
..........................
68,628,312
33,900,950
47,171,238
Value
-
Unaffiliated
issuers
................................
$3,383,159,921
$1,364,327,500
$6,802,251,015
Value
-
Controlled
affiliates
(Not
e
3f)
.........................
65,440,300
33,826,000
46,532,900
Cash
..................................................
36,360,242
10,085,336
17,898,831
Receivables:
Investment
securities
sold
.................................
—
1,432,665
734,155
Capital
shares
sold
......................................
3,942,725
3,468,563
5,295,904
Interest
...............................................
33,763,396
9,453,582
63,219,340
Affiliates
..............................................
—
1,222
—
Total
assets
........................................
3,522,666,584
1,422,594,868
6,935,932,145
Liabilities:
Payables:
Investment
securities
purchased
............................
40,600,611
29,612,188
61,452,733
Capital
shares
redeemed
.................................
8,691,927
3,432,021
15,086,885
Management
fees
.......................................
919,622
277,942
2,576,344
Distribution
fees
........................................
277,990
114,339
704,038
Transfer
agent
fees
......................................
371,795
111,185
761,134
Trustees'
fees
and
expenses
...............................
—
468
—
Distributions
to
shareholders
...............................
922,702
378,597
2,190,810
Accrued
expenses
and
other
liabilities
.........................
565,609
155,629
602,418
Total
liabilities
.......................................
52,350,256
34,082,369
83,374,362
Net
assets,
at
value
...............................
$3,470,316,328
$1,388,512,499
$6,852,557,783
Net
assets
consist
of:
Paid-in
capital
...........................................
$3,477,214,902
$1,394,854,218
$7,135,873,984
Total
distributable
earnings
(losses)
...........................
(6,898,574)
(6,341,719)
(283,316,201)
Net
assets,
at
value
...............................
$3,470,316,328
$1,388,512,499
$6,852,557,783
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
February
28,
2022
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
169
Franklin
Federal
Intermediate-
Term
Tax-Free
Income
Fund
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Franklin
High
Yield
Tax-Free
Income
Fund
Class
A:
Net
assets,
at
value
.....................................
$754,463,002
$345,669,574
$1,559,216,259
Shares
outstanding
......................................
63,802,448
33,418,212
155,221,445
Net
asset
value
per
share
a
................................
$11.82
$10.34
$10.05
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
97.75%,
97.75%
and
96.25%,
respectively)
..........................
$12.09
$10.58
$10.44
Class
A1:
Net
assets,
at
value
.....................................
$1,265,052,220
$413,868,802
$3,518,032,817
Shares
outstanding
......................................
107,122,362
39,974,946
350,504,718
Net
asset
value
per
share
a
................................
$11.81
$10.35
$10.04
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
97.75%,
97.75%
and
96.25%,
respectively)
..........................
$12.08
$10.59
$10.43
Class
C:
Net
assets,
at
value
.....................................
$67,008,456
—
$262,313,329
Shares
outstanding
......................................
5,655,997
—
25,610,771
Net
asset
value
and
maximum
offering
price
per
share
a
...........
$11.85
—
$10.24
Class
R6:
Net
assets,
at
value
.....................................
$257,640,607
$86,416,833
$228,725,319
Shares
outstanding
......................................
21,760,740
8,353,813
22,675,718
Net
asset
value
and
maximum
offering
price
per
share
...........
$11.84
$10.34
$10.09
Advisor
Class:
Net
assets,
at
value
.....................................
$1,126,152,043
$542,557,290
$1,284,270,059
Shares
outstanding
......................................
95,120,623
52,431,002
127,363,220
Net
asset
value
and
maximum
offering
price
per
share
...........
$11.84
$10.35
$10.08
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
February
28,
2022
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
170
Franklin
Massachusetts
Tax-Free
Income
Fund
Franklin
Municipal
Green
Bond
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issue
rs
.................................
$390,170,526
$8,894,723
$759,680,724
Value
-
Unaffiliated
issuers
................................
$401,984,980
$8,773,127
$788,677,843
Cash
..................................................
31,906,067
1,728,535
10,005,492
Receivables:
Investment
securities
sold
.................................
—
132
—
Capital
shares
sold
......................................
904,241
150
806,007
Interest
...............................................
3,579,143
89,911
6,472,721
Affiliates
..............................................
—
28,841
—
Total
assets
........................................
438,374,431
10,620,696
805,962,063
Liabilities:
Payables:
Investment
securities
purchased
............................
5,116,057
—
—
Capital
shares
redeemed
.................................
528,469
3,225
1,494,083
Management
fees
.......................................
182,549
—
321,942
Distribution
fees
........................................
38,469
745
92,869
Transfer
agent
fees
......................................
41,054
754
78,181
Reports
to
shareholders
fees
..............................
26,457
8,575
29,832
Professional
fees
.......................................
46,096
40,143
42,264
Trustees'
fees
and
expenses
...............................
351
1,163
1,032
Distributions
to
shareholders
...............................
109,958
4,841
210,603
Accrued
expenses
and
other
liabilities
.........................
11,047
23,892
15,777
Total
liabilities
.......................................
6,100,507
83,338
2,286,583
Net
assets,
at
value
...............................
$432,273,924
$10,537,358
$803,675,480
Net
assets
consist
of:
Paid-in
capital
...........................................
$436,912,287
$10,660,468
$868,666,497
Total
distributable
earnings
(losses)
...........................
(4,638,363)
(123,110)
(64,991,017)
Net
assets,
at
value
...............................
$432,273,924
$10,537,358
$803,675,480
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
February
28,
2022
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
171
Franklin
Massachusetts
Tax-Free
Income
Fund
Franklin
Municipal
Green
Bond
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
Class
A:
Net
assets,
at
value
.....................................
$64,555,341
$1,540,567
$141,418,874
Shares
outstanding
......................................
5,622,640
152,439
12,653,218
Net
asset
value
per
share
a
................................
$11.48
$10.11
$11.18
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%,
96.25%
and
96.25%,
respectively)
..........................
$11.93
$10.50
$11.62
Class
A1:
Net
assets,
at
value
.....................................
$218,895,041
—
$464,256,238
Shares
outstanding
......................................
19,078,469
—
41,592,189
Net
asset
value
per
share
a
................................
$11.47
—
$11.16
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%,
-%
and
96.25%,
respectively)
..............................
$11.92
—
$11.59
Class
C:
Net
assets,
at
value
.....................................
$17,988,185
$144,698
$58,631,656
Shares
outstanding
......................................
1,548,416
14,312
5,182,237
Net
asset
value
and
maximum
offering
price
per
share
a
...........
$11.62
$10.11
$11.31
Class
R6:
Net
assets,
at
value
.....................................
$20,888,453
$4,855
$35,919,998
Shares
outstanding
......................................
1,819,311
480
3,214,661
Net
asset
value
and
maximum
offering
price
per
share
...........
$11.48
$10.11
$11.17
Advisor
Class:
Net
assets,
at
value
.....................................
$109,946,904
$8,847,238
$103,448,714
Shares
outstanding
......................................
9,582,206
874,999
9,259,263
Net
asset
value
and
maximum
offering
price
per
share
...........
$11.47
$10.11
$11.17
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Operations
for
the
year
ended
February
28,
2022
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
172
Franklin
Federal
Intermediate-
Term
Tax-Free
Income
Fund
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Franklin
High
Yield
Tax-Free
Income
Fund
Investment
income:
Dividends:
Unaffiliated
issuers
......................................
$—
$—
$741,990
Controlled
affiliates
(Not
e
3f)
...............................
1,123,451
609,046
856,719
Interest:
Unaffiliated
issuers
......................................
97,769,248
18,421,810
298,645,403
Total
investment
income
.................................
98,892,699
19,030,856
300,244,112
Expenses:
Management
fees
(Note
3
a
)
.................................
17,312,736
6,588,898
31,723,754
Distribution
fees:
(Note
3c
)
    Class
A
..............................................
1,815,847
829,515
3,575,516
    Class
A1
.............................................
1,365,204
671,989
3,737,417
    Class
C
..............................................
608,792
—
2,056,469
Transfer
agent
fees:
(Note
3e
)
    Class
A
..............................................
530,898
188,870
999,303
    Class
A1
.............................................
993,552
254,915
2,643,228
    Class
C
..............................................
67,657
—
226,170
    Class
R6
.............................................
110,093
25,874
62,555
    Advisor
Class
..........................................
860,484
312,318
926,146
Custodian
fees
(Note
4
)
....................................
20,120
7,190
37,077
Reports
to
shareholders
fees
................................
369,933
67,001
395,523
Registration
and
filing
fees
..................................
220,551
136,017
277,032
Professional
fees
.........................................
89,289
68,703
104,693
Trustees'
fees
and
expenses
................................
32,184
12,299
58,653
Other
..................................................
237,081
112,614
1,005,499
Total
expenses
.......................................
24,634,421
9,276,203
47,829,035
Expense
reductions
(Note
4
)
.............................
(5,413)
(8,231)
(16,623)
Expenses
waived/paid
by
affiliates
(Note
3
f
and
3
g
)
............
(3,825,509)
(2,196,996)
(62,975)
Net
expenses
.......................................
20,803,499
7,070,976
47,749,437
Net
investment
income
..............................
78,089,200
11,959,880
252,494,675
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
....................................
19,638,184
18,149
85,762,107
Controlled
affiliates
(Note
3
f
)
.............................
—
(52,514)
—
Net
realized
gain
(loss)
................................
19,638,184
(34,365)
85,762,107
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
....................................
(141,748,255)
(28,899,769)
(263,777,399)
Controlled
affiliates
(Note
3
f
)
.............................
(1,685,553)
(786,530)
(1,082,800)
Net
change
in
unrealized
appreciation
(depreciation)
..........
(143,433,808)
(29,686,299)
(264,860,199)
Net
realized
and
unrealized
gain
(loss)
..........................
(123,795,624)
(29,720,664)
(179,098,092)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
........
$(45,706,424)
$(17,760,784)
$73,396,583
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Operations
(continued)
for
the
year
ended
February
28,
2022
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
173
Franklin
Massachusetts
Tax-Free
Income
Fund
Franklin
Municipal
Green
Bond
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
Investment
income:
Interest:
Unaffiliated
issuers
......................................
12,177,774
153,433
26,233,325
Expenses:
Management
fees
(Note
3
a
)
.................................
2,255,620
59,269
4,018,325
Distribution
fees:
(Note
3c
)
    Class
A
..............................................
158,932
2,117
337,103
    Class
A1
.............................................
236,956
—
499,774
    Class
C
..............................................
147,134
999
483,068
Transfer
agent
fees:
(Note
3e
)
    Class
A
..............................................
47,237
991
94,234
    Class
A1
.............................................
176,229
—
349,769
    Class
C
..............................................
16,853
205
52,100
    Class
R6
.............................................
8,232
24
9,738
    Advisor
Class
..........................................
78,049
6,772
67,503
Custodian
fees
(Note
4
)
....................................
2,543
41
4,659
Reports
to
shareholders
fees
................................
29,149
7,116
39,537
Registration
and
filing
fees
..................................
59,573
69,486
38,068
Professional
fees
.........................................
75,461
80,435
58,820
Trustees'
fees
and
expenses
................................
4,139
1,238
8,161
Amortization
of
offering
costs
(Not
e
1g)
........................
—
20,769
—
Other
..................................................
41,930
17,711
53,042
Total
expenses
.......................................
3,338,037
267,173
6,113,901
Expense
reductions
(Note
4
)
.............................
(3,167)
(55)
(5,739)
Expenses
waived/paid
by
affiliates
(Note
3
f
and
3
g
)
............
(2,392)
(221,166)
—
Net
expenses
.......................................
3,332,478
45,952
6,108,162
Net
investment
income
..............................
8,845,296
107,481
20,125,163
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
....................................
2,483,489
—
1,843,006
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
....................................
(15,471,274)
(240,874)
(22,042,965)
Net
realized
and
unrealized
gain
(loss)
..........................
(12,987,785)
(240,874)
(20,199,959)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
........
$(4,142,489)
$(133,393)
$(74,796)
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
174
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Year
Ended
February
28,
2022
Year
Ended
February
28,
2021
Year
Ended
February
28,
2022
Year
Ended
February
28,
2021
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$78,089,200
$83,247,805
$11,959,880
$13,871,667
Net
realized
gain
(loss)
............
19,638,184
(7,384,342)
(34,365)
(1,699,938)
Net
change
in
unrealized
appreciation
(depreciation)
.................
(143,433,808)
(50,964,749)
(29,686,299)
(1,882,133)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
(45,706,424)
24,898,714
(17,760,784)
10,289,596
Distributions
to
shareholders:
Class
A
........................
(13,727,492)
(11,063,019)
(2,317,138)
(2,206,534)
Class
A1
.......................
(27,971,260)
(32,632,232)
(3,584,062)
(5,588,844)
Class
C
........................
(1,405,068)
(2,656,709)
—
—
Class
R6
.......................
(9,704,030)
(8,961,135)
(784,984)
(755,465)
Advisor
Class
...................
(25,287,616)
(28,121,424)
(5,193,340)
(5,347,614)
Total
distributions
to
shareholders
.....
(78,095,466)
(83,434,519)
(11,879,524)
(13,898,457)
Capital
share
transactions:
(Note
2
)
Class
A
........................
151,933,617
228,880,279
58,474,407
136,442,860
Class
A1
.......................
(95,815,361)
(90,738,074)
(45,440,406)
(49,055,343)
Class
C
........................
(52,479,554)
(80,100,974)
—
—
Class
R6
.......................
(143,397,907)
12,583,861
18,054,059
18,548,794
Advisor
Class
...................
11,781,859
(104,848,032)
36,938,149
226,558,071
Total
capital
share
transactions
.......
(127,977,346)
(34,222,940)
68,026,209
332,494,382
Net
increase
(decrease)
in
net
assets
.....................
(251,779,236)
(92,758,745)
38,385,901
328,885,521
Net
assets:
Beginning
of
year
..................
3,722,095,564
3,814,854,309
1,350,126,598
1,021,241,077
End
of
year
......................
$3,470,316,328
$3,722,095,564
$1,388,512,499
$1,350,126,598
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
175
Franklin
High
Yield
Tax-Free
Income
Fund
Franklin
Massachusetts
Tax-Free
Income
Fund
Year
Ended
February
28,
2022
Year
Ended
February
28,
2021
Year
Ended
February
28,
2022
Year
Ended
February
28,
2021
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$252,494,675
$261,891,492
$8,845,296
$10,980,794
Net
realized
gain
(loss)
............
85,762,107
(12,245,025)
2,483,489
882,794
Net
change
in
unrealized
appreciation
(depreciation)
.................
(264,860,199)
(126,550,586)
(15,471,274)
(15,412,659)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
73,396,583
123,095,881
(4,142,489)
(3,549,071)
Distributions
to
shareholders:
Class
A
........................
(48,912,923)
(37,039,394)
(1,166,474)
(1,171,766)
Class
A1
.......................
(133,724,379)
(149,289,400)
(4,729,342)
(6,359,967)
Class
C
........................
(9,352,139)
(13,402,365)
(324,348)
(548,334)
Class
R6
.......................
(7,469,662)
(5,311,674)
(416,178)
(347,340)
Advisor
Class
...................
(48,104,855)
(44,002,238)
(2,204,859)
(2,446,923)
Total
distributions
to
shareholders
.....
(247,563,958)
(249,045,071)
(8,841,201)
(10,874,330)
Capital
share
transactions:
(Note
2
)
Class
A
........................
427,759,208
288,969,540
7,788,717
16,217,180
Class
A1
.......................
(155,591,551)
(362,999,791)
(19,817,443)
(52,468,628)
Class
C
........................
(92,656,240)
(118,055,375)
(8,668,013)
(3,660,554)
Class
R6
.......................
78,465,868
31,664,536
4,663,994
4,906,420
Advisor
Class
...................
89,039,042
86,759,597
6,460,125
47,362,046
Total
capital
share
transactions
.......
347,016,327
(73,661,493)
(9,572,620)
12,356,464
Net
increase
(decrease)
in
net
assets
.....................
172,848,952
(199,610,683)
(22,556,310)
(2,066,937)
Net
assets:
Beginning
of
year
..................
6,679,708,831
6,879,319,514
454,830,234
456,897,171
End
of
year
......................
$6,852,557,783
$6,679,708,831
$432,273,924
$454,830,234
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
176
Franklin
Municipal
Green
Bond
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
Year
Ended
February
28,
2022
Year
Ended
February
28,
2021
Year
Ended
February
28,
2022
Year
Ended
February
28,
2021
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$107,481
$80
,107
$20,125,163
$22,328,234
Net
realized
gain
(loss)
............
—
(4,456)
1,843,006
(4,545,869)
Net
change
in
unrealized
appreciation
(depreciation)
.................
(240,874)
(55,652)
(22,042,965)
(21,633,467)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
(133,393)
19,999
(74,796)
(3,851,102)
Distributions
to
shareholders:
Class
A
........................
(11,490)
(2,890)
(3,093,286)
(2,777,280)
Class
A1
.......................
—
—
(12,245,222)
(14,153,363)
Class
C
........................
(1,758)
(745)
(1,386,422)
(2,054,607)
Class
R6
.......................
(61)
(41)
(912,192)
(835,669)
Advisor
Class
...................
(92,876)
(76,652)
(2,459,350)
(2,393,094)
Total
distributions
to
shareholders
.....
(106,185)
(80,328)
(20,096,472)
(22,214,013)
Capital
share
transactions:
(Note
2
)
Class
A
........................
707,740
882,676
26,696,327
12,728,322
Class
A1
.......................
—
—
(41,070,926)
(51,492,416)
Class
C
........................
(61,306)
213,082
(28,211,554)
(26,126,754)
Class
R6
.......................
—
5,000
4,915,215
(259,580)
Advisor
Class
...................
2,732,449
1,182,507
11,764,193
14,597,139
Total
capital
share
transactions
.......
3,378,883
2,283,265
(25,906,745)
(50,553,289)
Net
increase
(decrease)
in
net
assets
.....................
3,139,305
2,222,936
(46,078,013)
(76,618,404)
Net
assets:
Beginning
of
year
..................
7,398,053
5,175,117
849,753,493
926,371,897
End
of
year
......................
$10,537,358
$7,398,053
$803,675,480
$849,753,493
Franklin
Tax-Free
Trust
177
franklintempleton.com
Annual
Report
Notes
to
Financial
Statements
1.
Organization
and
Significant
Accounting
Policies
Franklin
Tax-Free
Trust (Trust)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-end
management
investment
company,
consisting
of
twenty-
one
separate
funds,
six
of
which
are
included
in
this
report
(Funds)
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP).
The
classes
of
shares
offered
within
each
of
the
Funds
are
indicated
below.
Effective
August
2,
2021,
Class
C
shares
automatically
convert
to
Class
A
shares
on
a
monthly
basis,
after
they
have
been
held
for
8
years.
Prior
to
August
2,
2021,
Class
C
shares
converted
to
Class
A
shares
after
a
10-year
holding
period.
Each
class
of
shares
may
differ
by
its initial
sales
load,
contingent
deferred
sales
charges,
voting
rights
on
matters
affecting
a
single
class,
its
exchange
privilege
and
fees
due
to
differing
arrangements
for
distribution
and
transfer
agent
fees.
Class
A,
Class
A1,
Class
R6
&
Advisor
Class
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Class
A,
Class
A1,
Class
C,
Class
R6
&
Advisor
Class
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
Franklin
High
Yield
Tax-Free
Income
Fund
Franklin
Massachusetts
Tax-Free
Income
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
Class
A,
Class
C,
Class
R6
&
Advisor
Class
Franklin
Municipal
Green
Bond
Fund
The
following
summarizes
the Funds'
significant
accounting
policies
. 
a.
Financial
Instrument
Valuation 
The Funds'
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The Funds calculate the
net
asset
value
(NAV)
per
share
each
business
day
as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the
Trust's
Board
of
Trustees
(the
Board),
the
Funds' administrator
has
responsibility
for
oversight
of
valuation,
including
leading
the
cross-functional
Valuation
Committee
(VC).
The
Funds
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value. 
Equity
securities
and
exchange
traded
funds
listed
on
an
exchange
or
on
the
NASDAQ
National
Market
System
are
valued
at
the
last
quoted
sale
price
or
the
official
closing
price of
the
day,
respectively.
Over-the-counter
(OTC)
securities
are
valued
within
the
range
of
the
most
recent
quoted
bid
and
ask
prices.
Securities
that
trade
in
multiple
markets
or
on
multiple
exchanges
are
valued
according
to
the
broadest
and
most
representative
market.
Certain
equity
securities
are
valued
based
upon
fundamental
characteristics
or
relationships
to
similar
securities. 
Debt
securities
generally
trade
in
the
OTC
market
rather
than
on
a
securities
exchange.
The
Funds'
pricing
services
use
multiple
valuation
techniques
to
determine
fair
value.
In
instances
where
sufficient
market
activity
exists,
the
pricing
services
may
utilize
a
market-based
approach
through
which
quotes
from
market
makers
are
used
to
determine
fair
value.
In
instances
where
sufficient
market
activity
may
not
exist
or
is
limited,
the
pricing
services
also
utilize
proprietary
valuation
models
which
may
consider
market
characteristics
such
as
benchmark
yield
curves,
credit
spreads,
estimated
default
rates,
anticipated
market
interest
rate
volatility,
coupon
rates,
anticipated
timing
of
principal
repayments,
underlying
collateral,
and
other
unique
security
features
in
order
to
estimate
the
relevant
cash
flows,
which
are
then
discounted
to
calculate
the
fair
value.
The
Funds
have
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the
Funds
primarily
employ
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
book
values,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
b.
Securities
Purchased
on
a
When-Issued
or
Delayed
Delivery
Basis
Certain
or
all
Funds
purchase
securities
on
a
when-issued
or
delayed
delivery
basis,
with
payment
and
delivery
scheduled
for
a
future
date.
These
transactions
are
subject
to
market
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
178
franklintempleton.com
Annual
Report
fluctuations
and
are
subject
to
the
risk
that
the
value
at
delivery
may
be
more
or
less
than
the
trade
date
purchase
price.
Although
the
Funds
will
generally
purchase
these
securities
with
the
intention
of
holding
the
securities,
they
may
sell
the
securities
before
the
settlement
date.
c.
Senior
Floating
Rate
Interests
Certain
or
all
Funds
invest
in
senior
secured
corporate
loans
that
pay
interest
at
rates
which
are
periodically
reset
by
reference
to
a
base
lending
rate
plus
a
spread.
These
base
lending
rates
are
generally
the
prime
rate
offered
by
a
designated
U.S.
bank
or
the
London
InterBank
Offered
Rate
(LIBOR).
Senior
secured
corporate
loans
often
require
prepayment
of
principal
from
excess
cash
flows
or
at
the
discretion
of
the
borrower.
As
a
result,
actual
maturity
may
be
substantially
less
than
the
stated
maturity.
Senior
secured
corporate
loans
in
which
the
Funds
invest
are
generally
readily
marketable,
but
may
be
subject
to
certain
restrictions
on
resale.
d.
Income
Taxes
It
is each
Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. Each
Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
income
and
net
realized
gains
to
relieve
it
from
federal
income
and
excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
Each
Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
February
28,
2022, each
Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
Open
tax
years
are
those
that
remain
subject
to
examination
and
are
based
on
the
statute
of
limitations
in
each
jurisdiction
in
which
the
Fund
invests. 
e.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification
basis.
Interest
income
and
estimated
expenses
are
accrued
daily.
Amortization
of
premium
and
accretion
of
discount
on
debt
securities
are
included
in
interest
income.
Dividend
income
is
recorded
on
the
ex-dividend
date.
Dividends
from
net
investment
income
are
normally
declared
daily;
these
dividends
may
be
reinvested
or
paid
monthly
to
shareholders.
Distributions
from
realized
capital
gains
and
other
distributions,
if
any,
are
recorded
on
the
ex-dividend
date.
Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
Common
expenses
incurred
by
the
Trust
are
allocated
among
the
Funds
based
on
the
ratio
of
net
assets
of
each
Fund
to
the
combined
net
assets
of
the
Trust
or
based
on
the
ratio
of
number
of
shareholders
of
each
Fund
to
the
combined
number
of
shareholders
of
the
Trust.
Fund
specific
expenses
are
charged
directly
to
the
Fund
that
incurred
the
expense.
Realized
and
unrealized
gains
and
losses
and
net
investment
income,
excluding
class
specific
expenses,
are
allocated
daily
to
each
class
of
shares
based
upon
the
relative
proportion
of
net
assets
of
each
class.
Differences
in
per
share
distributions
by
class
are
generally
due
to
differences
in
class
specific
expenses.
f.
Insurance
The
scheduled
payments
of
interest
and
principal
for
each
insured
municipal
security
in
the
Trust
are
insured
by
either
a
new
issue
insurance
policy
or
a
secondary
insurance
policy.
Some
municipal
securities
in
the
Funds
are
secured
by
collateral
guaranteed
by
an
agency
of
the
U.S.
government.
Depending
on
the
type
of
coverage,
premiums
for
insurance
are
either
added
to
the
cost
basis
of
the
security
or
paid
by
a
third
party.
1.
Organization
and
Significant
Accounting
Policies
(continued)
b.
Securities
Purchased
on
a
When-Issued
or
Delayed
Delivery
Basis
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
179
franklintempleton.com
Annual
Report
Insurance
companies
typically
insure
municipal
bonds
that
tend
to
be
of
very
high
quality,
with
the
majority
of
underlying
municipal
bonds
rated
A
or
better.
However,
an
event
involving
an
insurer
could
have
an
adverse
effect
on
the
value
of
the
securities
insured
by
that
insurance
company.
There
can
be
no
assurance
the
insurer
will
be
able
to
fulfill
its
obligations
under
the
terms
of
the
policy.
g.
Offering
Costs
Offering
costs
are
amortized
on
a
straight
line
basis
over
twelve
months.
h.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
i.
Guarantees
and
Indemnifications
Under
the
Trust's
organizational
documents,
its
officers
and
trustees
are
indemnified
by
the
Trust
against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Trust.
Additionally,
in
the
normal
course
of
business,
the
Trust,
on
behalf
of
the
Funds,
enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The
Trust's
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the
Trust
that
have
not
yet
occurred.
Currently,
the
Trust
expects
the
risk
of
loss
to
be
remote.
2.
Shares
of
Beneficial
Interest
At
February
28,
2022,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Funds'
shares
were
as
follows:
Franklin
Federal
Intermediate-
Term
Tax-Free
Income
Fund
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
A
Class
A
Shares:
Year
ended
February
28,
2022
Shares
sold
a
...................................
25,841,098
$317,408,964
16,426,608
$173,382,859
Shares
issued
in
reinvestment
of
distributions
..........
1,057,938
12,928,871
214,528
2,261,184
Shares
redeemed
...............................
(14,606,065)
(178,404,218)
(11,120,853)
(117,169,636)
Net
increase
(decrease)
..........................
12,292,971
$151,933,617
5,520,283
$58,474,407
Year
ended
February
28,
2021
Shares
sold
a
...................................
27,721,776
$339,501,201
18,965,178
$200,552,694
Shares
issued
in
reinvestment
of
distributions
..........
831,878
10,200,430
200,986
2,125,871
Shares
redeemed
...............................
(9,893,430)
(120,821,352)
(6,276,570)
(66,235,705)
Net
increase
(decrease)
..........................
18,660,224
$228,880,279
12,889,594
$136,442,860
Class
A1
1.
Organization
and
Significant
Accounting
Policies
(continued)
f.
Insurance
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
180
franklintempleton.com
Annual
Report
Franklin
Federal
Intermediate-
Term
Tax-Free
Income
Fund
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
A1
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
4,208,850
$51,602,378
1,746,744
$18,469,815
Shares
issued
in
reinvestment
of
distributions
..........
2,163,843
26,436,064
316,274
3,338,404
Shares
redeemed
...............................
(14,226,743)
(173,853,803)
(6,367,502)
(67,248,625)
Net
increase
(decrease)
..........................
(7,854,050)
$(95,815,361)
(4,304,484)
$(45,440,406)
Year
ended
February
28,
2021
Shares
sold
...................................
5,815,207
$71,076,447
2,457,023
$25,982,228
Shares
issued
in
reinvestment
of
distributions
..........
2,490,304
30,461,634
484,623
5,125,365
Shares
redeemed
...............................
(15,809,750)
(192,276,155)
(7,615,269)
(80,162,936)
Net
increase
(decrease)
..........................
(7,504,239)
$(90,738,074)
(4,673,623)
$(49,055,343)
Class
C
Class
C
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
626,925
$7,710,743
—
$—
Shares
issued
in
reinvestment
of
distributions
..........
110,924
1,361,732
—
—
Shares
redeemed
a
..............................
(4,989,977)
(61,552,029)
—
—
Net
increase
(decrease)
..........................
(4,252,128)
$(52,479,554)
—
$—
Year
ended
February
28,
2021
Shares
sold
...................................
1,245,202
$15,251,014
—
$—
Shares
issued
in
reinvestment
of
distributions
..........
198,848
2,436,819
—
—
Shares
redeemed
a
..............................
(7,966,761)
(97,788,807)
—
—
Net
increase
(decrease)
..........................
(6,522,711)
$(80,100,974)
—
$—
Class
R6
Class
R6
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
8,809,084
$108,244,712
3,602,621
$38,015,451
Shares
issued
in
reinvestment
of
distributions
..........
723,368
8,867,097
62,827
662,210
Shares
redeemed
...............................
(21,659,393)
(260,509,716)
(1,960,881)
(20,623,602)
Net
increase
(decrease)
..........................
(12,126,941)
$(143,397,907)
1,704,567
$18,054,059
Year
ended
February
28,
2021
Shares
sold
...................................
10,772,107
$132,728,113
3,096,208
$32,748,806
Shares
issued
in
reinvestment
of
distributions
..........
707,505
8,677,134
62,493
660,842
Shares
redeemed
...............................
(10,670,403)
(128,821,386)
(1,414,731)
(14,860,854)
Net
increase
(decrease)
..........................
809,209
$12,583,861
1,743,970
$18,548,794
Advisor
Class
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
181
franklintempleton.com
Annual
Report
Franklin
Federal
Intermediate-
Term
Tax-Free
Income
Fund
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Advisor
Class
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
18,330,343
$225,128,159
16,704,115
$176,529,349
Shares
issued
in
reinvestment
of
distributions
..........
1,338,444
16,388,663
121,062
1,276,835
Shares
redeemed
...............................
(18,775,139)
(229,734,963)
(13,347,948)
(140,868,035)
Net
increase
(decrease)
..........................
893,648
$11,781,859
3,477,229
$36,938,149
Year
ended
February
28,
2021
Shares
sold
...................................
26,744,699
$327,878,093
28,656,242
$302,780,587
Shares
issued
in
reinvestment
of
distributions
..........
1,497,320
18,356,746
132,587
1,402,470
Shares
redeemed
...............................
(36,942,863)
(451,082,871)
(7,343,381)
(77,624,986)
Net
increase
(decrease)
..........................
(8,700,844)
$(104,848,032)
21,445,448
$226,558,071
Franklin
High
Yield
Tax-Free
Income
Fund
Franklin
Massachusetts
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
A
Class
A
Shares:
Year
ended
February
28,
2022
Shares
sold
a
...................................
59,380,113
$621,923,792
1,553,128
$18,547,969
Shares
issued
in
reinvestment
of
distributions
..........
4,303,734
44,836,646
90,022
1,069,868
Shares
redeemed
...............................
(22,936,685)
(239,001,230)
(999,149)
(11,829,120)
Net
increase
(decrease)
..........................
40,747,162
$427,759,208
644,001
$7,788,717
Year
ended
February
28,
2021
Shares
sold
a
...................................
43,608,628
$440,884,215
2,053,374
$24,532,599
Shares
issued
in
reinvestment
of
distributions
..........
3,269,241
32,925,616
89,006
1,061,952
Shares
redeemed
...............................
(18,490,711)
(184,840,291)
(797,479)
(9,377,371)
Net
increase
(decrease)
..........................
28,387,158
$288,969,540
1,344,901
$16,217,180
Class
A1
Class
A1
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
12,784,820
$133,384,749
330,690
$3,945,247
Shares
issued
in
reinvestment
of
distributions
..........
11,587,830
120,715,223
323,227
3,841,179
Shares
redeemed
...............................
(39,286,242)
(409,691,523)
(2,319,425)
(27,603,869)
Net
increase
(decrease)
..........................
(14,913,592)
$(155,591,551)
(1,665,508)
$(19,817,443)
Year
ended
February
28,
2021
Shares
sold
...................................
21,708,112
$213,728,975
724,178
$8,581,280
Shares
issued
in
reinvestment
of
distributions
..........
13,243,737
132,980,129
430,159
5,123,245
Shares
redeemed
...............................
(71,135,357)
(709,708,895)
(5,619,647)
(66,173,153)
Net
increase
(decrease)
..........................
(36,183,508)
$(362,999,791)
(4,465,310)
$(52,468,628)
Class
C
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
182
franklintempleton.com
Annual
Report
Franklin
High
Yield
Tax-Free
Income
Fund
Franklin
Massachusetts
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
C
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
4,362,534
$46,559,564
148,941
$1,800,015
Shares
issued
in
reinvestment
of
distributions
..........
842,540
8,963,518
23,905
287,934
Shares
redeemed
a
..............................
(13,823,864)
(148,179,322)
(888,399)
(10,755,962)
Net
increase
(decrease)
..........................
(8,618,790)
$(92,656,240)
(715,553)
$(8,668,013)
Year
ended
February
28,
2021
Shares
sold
...................................
4,446,854
$45,644,171
535,165
$6,481,505
Shares
issued
in
reinvestment
of
distributions
..........
1,218,859
12,466,327
40,162
484,377
Shares
redeemed
a
..............................
(17,223,974)
(176,165,873)
(879,637)
(10,626,436)
Net
increase
(decrease)
..........................
(11,558,261)
$(118,055,375)
(304,310)
$(3,660,554)
Class
R6
Class
R6
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
10,243,739
$107,614,646
637,435
$7,585,567
Shares
issued
in
reinvestment
of
distributions
..........
610,399
6,385,602
8,626
102,534
Shares
redeemed
...............................
(3,407,100)
(35,534,380)
(255,454)
(3,024,107)
Net
increase
(decrease)
..........................
7,447,038
$78,465,868
390,607
$4,663,994
Year
ended
February
28,
2021
Shares
sold
...................................
6,379,947
$64,624,047
481,601
$5,777,957
Shares
issued
in
reinvestment
of
distributions
..........
452,924
4,579,877
6,050
72,195
Shares
redeemed
...............................
(3,773,350)
(37,539,388)
(79,761)
(943,732)
Net
increase
(decrease)
..........................
3,059,521
$31,664,536
407,890
$4,906,420
Advisor
Class
Advisor
Class
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
32,905,773
$345,760,107
3,118,505
$36,528,748
Shares
issued
in
reinvestment
of
distributions
..........
3,714,863
38,870,647
178,849
2,125,046
Shares
redeemed
...............................
(28,269,380)
(295,591,712)
(2,721,743)
(32,193,669)
Net
increase
(decrease)
..........................
8,351,256
$89,039,042
575,611
$6,460,125
Year
ended
February
28,
2021
Shares
sold
...................................
41,914,591
$422,609,045
5,536,692
$65,419,830
Shares
issued
in
reinvestment
of
distributions
..........
3,445,604
34,793,721
194,582
2,321,450
Shares
redeemed
...............................
(37,414,463)
(370,643,169)
(1,719,193)
(20,379,234)
Net
increase
(decrease)
..........................
7,945,732
$86,759,597
4,012,081
$47,362,046
Shares
sold
...................................
41,914,591
$422,609,045
5,536,692
$65,419,830
Shares
issued
in
reinvestment
of
distributions
..........
3,445,604
34,793,721
194,582
2,321,450
Shares
redeemed
....................................................................
(37,414,463)
(370,643,169)
(1,719,193)
(20,379,234)
Shares
redeemed
...............................
(28,269,380)
(295,591,712)
(2,721,743)
(32,193,669)
Shares
sold
..............................................................................
41,914,591
$422,609,045
5,536,692
$65,419,830
Shares
issued
in
reinvestment
of
distributions
........................
3,445,604
34,793,721
194,582
2,321,450
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
183
franklintempleton.com
Annual
Report
Franklin
Municipal
Green
Bond
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
A
Class
A
Shares:
Year
ended
February
28,
2022
Shares
sold
a
...................................
109,058
$1,142,826
4,002,318
$46,526,741
Shares
issued
in
reinvestment
of
distributions
..........
1,042
10,823
238,426
2,752,388
Shares
redeemed
...............................
(42,527)
(445,909)
(1,954,472)
(22,582,802)
Net
increase
(decrease)
..........................
67,573
$707,740
2,286,272
$26,696,327
Year
ended
February
28,
2021
b
Shares
sold
a
...................................
94,648
$984,131
2,894,555
$32,958,968
Shares
issued
in
reinvestment
of
distributions
..........
234
2,433
212,855
2,419,424
Shares
redeemed
...............................
(10,016)
(103,888)
(2,010,291)
(22,650,070)
Net
increase
(decrease)
..........................
84,866
$882,676
1,097,119
$12,728,322
Class
A1
Class
A1
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
—
$—
951,502
$10,985,445
Shares
issued
in
reinvestment
of
distributions
..........
—
—
880,407
10,157,101
Shares
redeemed
...............................
—
—
(5,386,715)
(62,213,472)
Net
increase
(decrease)
..........................
—
$—
(3,554,806)
$(41,070,926)
Year
ended
February
28,
2021
Shares
sold
...................................
—
$—
1,251,044
$14,100,181
Shares
issued
in
reinvestment
of
distributions
..........
—
—
1,023,925
11,613,531
Shares
redeemed
...............................
—
—
(6,841,882)
(77,206,128)
Net
increase
(decrease)
..........................
—
$—
(4,566,913)
$(51,492,416)
Class
C
Class
C
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
8,226
$85,963
337,987
$3,968,819
Shares
issued
in
reinvestment
of
distributions
..........
167
1,736
109,144
1,277,734
Shares
redeemed
a
..............................
(14,494)
(149,005)
(2,843,562)
(33,458,107)
Net
increase
(decrease)
..........................
(6,101)
$(61,306)
(2,396,431)
$(28,211,554)
Year
ended
February
28,
2021
b
Shares
sold
...................................
20,350
$212,427
603,547
$6,964,079
Shares
issued
in
reinvestment
of
distributions
..........
66
689
162,928
1,871,763
Shares
redeemed
a
..............................
(3)
(34)
(3,054,653)
(34,962,596)
Net
increase
(decrease)
..........................
20,413
$213,082
(2,288,178)
$(26,126,754)
Class
R6
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
184
franklintempleton.com
Annual
Report
3.
Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and
trustees
of
the
Trust
are
also
officers
and/or
directors
of
the
following
subsidiaries:
Franklin
Municipal
Green
Bond
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
R6
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
—
$—
761,868
$8,831,528
Shares
issued
in
reinvestment
of
distributions
..........
—
—
76,152
878,973
Shares
redeemed
...............................
—
—
(417,166)
(4,795,286)
Net
increase
(decrease)
..........................
—
$—
420,854
$4,915,215
Year
ended
February
28,
2021
b
Shares
sold
...................................
480
$5,000
938,189
$10,657,331
Shares
issued
in
reinvestment
of
distributions
..........
—
—
72,221
820,104
Shares
redeemed
...............................
—
—
(1,052,336)
(11,737,015)
Net
increase
(decrease)
..........................
480
$5,000
(41,926)
$(259,580)
Advisor
Class
Advisor
Class
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
285,544
$2,991,713
2,647,057
$30,359,439
Shares
issued
in
reinvestment
of
distributions
..........
2,930
30,432
197,826
2,283,765
Shares
redeemed
...............................
(27,833)
(289,696)
(1,811,088)
(20,879,011)
Net
increase
(decrease)
..........................
260,641
$2,732,449
1,033,795
$11,764,193
Year
ended
February
28,
2021
b
Shares
sold
...................................
132,416
$1,367,494
3,801,735
$43,043,846
Shares
issued
in
reinvestment
of
distributions
..........
418
4,350
191,937
2,181,238
Shares
redeemed
...............................
(18,476)
(189,337)
(2,714,325)
(30,627,945)
Net
increase
(decrease)
..........................
114,358
$1,182,507
1,279,347
$14,597,139
a
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
b
For
the
period
July
24,
2020
(effective
date)
to
February
28,
2021
for
Franklin
Municipal
Green
Bond
Fund.
Subsidiary
Affiliation
Franklin
Advisers,
Inc.
(Advisers)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Distributors,
LLC
(Distributors)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
185
franklintempleton.com
Annual
Report
a.
Management
Fees
The
Funds,
except
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund,
pay
an
investment
management
fee
to
Advisers
based
on
the
month-end
net
assets
of
each
of
the
Funds
and
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
pays
an
investment
management
fee
to
Advisers
based
on
the
average
daily
net
assets
of
the
fund
as
follows:
For
the
year
ended
February
28,
2022,
each
Fund's
gross
effective
investment
management
fee
rate
based
on
average
daily
net
assets
was
as
follows:
b.
Administrative
Fees
Under
an
agreement
with
Advisers,
FT
Services
provides
administrative
services
to
the
Funds.
The
fee
is
paid
by
Advisers
based
on
each
of
the
Funds'
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Funds.
c.
Distribution
Fees
The
Board
has
adopted
distribution
plans
for
each
share
class,
with
the
exception
of
Class
R6
and
Advisor
Class
shares,
pursuant
to
Rule
12b-1
under
the
1940
Act.
Under
the
Funds’
Class
A
and
A1
reimbursement
distribution
plans,
the
Funds
reimburse
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of each
Fund's
shares
up
to
the
maximum
annual
plan
rate
for
each
class.
Under
the
Class
A
and
A1
reimbursement
distribution
plans,
costs
exceeding
the
maximum
for
the
current
plan
year
cannot
be
reimbursed
in
subsequent
periods.
In
addition,
under
the
Funds’
Class
C
compensation
distribution
plans,
the
Funds
pay
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of
each
Fund's
shares
up
to
the
maximum
annual
plan
rate.
The
plan
year,
for
purposes
of
monitoring
compliance
with
the
maximum
annual
plan
rates,
is
February
1
through
January
31
for
each
Fund.
The
maximum
annual
plan
rates,
based
on
the
average
daily
net
assets,
for
each
class,
are
as
follows:
Annualized
Fee
Rate
Net
Assets
0.625%
Up
to
and
including
$100
million
0.500%
Over
$100
million,
up
to
and
including
$250
million
0.450%
Over
$250
million,
up
to
and
including
$7.5
billion
0.440%
Over
$7.5
billion,
up
to
and
including
$10
billion
0.430%
Over
$10
billion,
up
to
and
including
$12.5
billion
0.420%
Over
$12.5
billion,
up
to
and
including
$15
billion
0.400%
Over
$15
billion,
up
to
and
including
$17.5
billion
0.380%
Over
$17.5
billion,
up
to
and
including
$20
billion
0.360%
In
excess
of
$20
billion
Franklin
Federal
Intermediate-
Term
Tax-Free
Income
Fund
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Franklin
High
Yield
Tax-Free
Income
Fund
Gross
effective
investment
management
fee
rate
........
0.455%
0.468%
0.454%
Franklin
Massachusetts
Tax-Free
Income
Fund
Franklin
Municipal
Green
Bond
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
Gross
effective
investment
management
fee
rate
........
0.504%
0.625%
0.479%
3.
Transactions
with
Affiliates
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
186
franklintempleton.com
Annual
Report
d.
Sales
Charges/Underwriting
Agreements
Front-end
sales
charges
and
contingent
deferred
sales
charges
(CDSC)
do
not
represent
expenses
of
the
Funds.
These
charges
are
deducted
from
the
proceeds
of
sales
of
fund
shares
prior
to
investment
or
from
redemption
proceeds
prior
to
remittance,
as
applicable.
Distributors
has
advised
the
Funds
of
the
following
commission
transactions
related
to
the
sales
and
redemptions
of
the
Funds'
shares
for
the
year:
Franklin
Federal
Intermediate-
Term
Tax-Free
Income
Fund
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Franklin
High
Yield
Tax-Free
Income
Fund
Reimbursement
Plans:
Class
A
...............................
0.25%
0.25%
0.25%
Class
A1
..............................
0.10%
0.15%
0.10%
Compensation
Plans:
Class
C
...............................
0.65%
—
0.65%
Franklin
Massachusetts
Tax-Free
Income
Fund
Franklin
Municipal
Green
Bond
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
Reimbursement
Plans:
Class
A
...............................
0.25%
0.25%
0.25%
Class
A1
..............................
0.10%
—
0.10%
Compensation
Plans:
Class
C
...............................
0.65%
0.65%
0.65%
Franklin
Federal
Intermediate-
Term
Tax-Free
Income
Fund
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Franklin
High
Yield
Tax-Free
Income
Fund
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..................
$23,620
$12,226
$148,304
CDSC
retained
...........................
$120,664
$159,459
$208,668
Franklin
Massachusetts
Tax-Free
Income
Fund
Franklin
Municipal
Green
Bond
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..................
$4,922
$334
$12,467
CDSC
retained
...........................
$24,453
$305
$17,908
3.
Transactions
with
Affiliates
(continued)
c.
Distribution
Fees
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
187
franklintempleton.com
Annual
Report
e.
Transfer
Agent
Fees
Each
class
of
shares
pays
transfer
agent
fees
to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations.
The
fees
are
based
on
an
annualized
asset
based
fee
of
0.02%
plus
a
transaction
based
fee.
In
addition,
each
class
reimburses
Investor
Services
for
out
of
pocket
expenses
incurred
and,
except
for
Class
R6,
reimburses
shareholder
servicing
fees
paid
to
third
parties.
These
fees
are
allocated
daily
based
upon
their
relative
proportion
of
such
classes'
aggregate
net
assets.
Class
R6
pays
Investor
Services
transfer
agent
fees
specific
to
that
class.
For
the
year
ended
February
28,
2022,
the
Funds
paid
transfer
agent
fees
as
noted
in
the
Statements
of
Operations
of
which
the
following
amounts
were
retained
by
Investor
Services:
f.
Investments
in
Affiliated
Management
Investment
Companies
Certain
or
all
Funds
invest
in
one
or
more
affiliated
management
investment
companies.
As
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
fund’s
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
fund.
The
Funds
do
not
invest
for
purposes
of
exercising
a
controlling
influence
over
the
management
or
policies.
Management
fees
paid
by
the
Funds
are
waived
on
assets
invested
in
the
affiliated
management
investment
companies,
as
noted
in
the
Statements
of
Operations,
in
an
amount
not
to
exceed
the
management
and
administrative
fees
paid
directly
or
indirectly
by
each
affiliate.
During
the
year
ended
February
28,
2022,
investments
in
affiliated
management
investment
companies
were
as
follows:
Franklin
Federal
Intermediate-
Term
Tax-Free
Income
Fund
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Franklin
High
Yield
Tax-Free
Income
Fund
Transfer
agent
fees
........................
$974,349
$357,438
$1,981,235
Franklin
Massachusetts
Tax-Free
Income
Fund
Franklin
Municipal
Green
Bond
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
Transfer
agent
fees
........................
$144,334
$5,636
$278,771
    aa
Value
at
Beginning
of
Year
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Year
Number
of
Shares
Held
at
End
of
Year
Investment
Income
a      
a  
a  
a  
a  
a  
a  
a  
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
Controlled
Affiliates
Dividends
Franklin
Liberty
Federal
Tax-Free
Bond
ETF
...............
$
67,125,853
$
—
$
—
$
—
$
(1,685,553)
$
65,440,300
2,515,000
$
1,123,451
Total
Affiliated
Securities
...
$67,125,853
$—
$—
$—
$(1,685,553)
$65,440,300
$1,123,451
3.
Transactions
with
Affiliates
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
188
franklintempleton.com
Annual
Report
g.
Waiver
and
Expense
Reimbursements
Advisers
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
and
to
assume
as
its
own
expense
certain
expenses
otherwise
payable
by
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund,
Franklin
Limited-Term
Tax-Free
Income
Fund
and
Franklin
Municipal
Green
Bond
Fund
so
that
the
operating expenses
(excluding
distribution
fees,
acquired
fund
fees
and
expenses
and
certain
non-routine
expenses
or
costs,
including
those
relating
to
litigation,
indemnification,
reorganizations,
and
liquidations)
for
each
class
of
the
Funds
do
not
exceed
0.46%,
0.40%
and
0.46%,
respectively,
based
on
the
average
net
assets
of
each
class
until
June
30,
2022.
Total
expenses
waived
or
paid
are
not
subject
to
recapture
subsequent
to
the
Funds'
fiscal
year
end.
For
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund,
Investor
Services
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
so
that
the
Class
R6
transfer
agent
fees
do
not
exceed
0.02%
based
on
the
average
net
assets
of
the
class
until
June
30,
2022.
For
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund,
Franklin
High
Yield
Tax-Free
Income
Fund,
Franklin
Massachusetts
Tax-Free
Income
Fund,
Franklin
Municipal
Green
Bond
Fund
and
Franklin
New
Jersey
Tax-Free
Income
Fund,
Investor
Services
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
so
that
the
Class
R6
transfer
agent
fees
do
not
exceed
0.03%
based
on
the
average
net
assets
of
the
class
until
June
30,
2022.
Effective
April
1,
2022,
Advisers
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
and
to
assume
as
its
own
expense
certain
expenses
otherwise
payable
by
Franklin
Massachusetts
Tax-Free
Income
Fund
and
Franklin
New
Jersey
Tax-
Free
Income
Fund
so
that
the
operating
expenses
(excluding
Rule
12b-1
fees,
acquired
fund
fees
and
expenses
and
certain
non-routine
expenses)
for
each
class
of
the
Funds
do
not
exceed
0.65%,
based
on
the
average
net
assets
of
each
class
until
June
30,
2023.
Total
expenses
waived
or
paid
are
not
subject
to
recapture
subsequent
to
the
Funds’
fiscal
year
end.
h.
Other
Affiliated
Transactions
At
February
28,
2022,
Franklin
Resources,
Inc.
owned
48.1%
of
Franklin
Municipal
Green
Bond
Fund’s
outstanding
shares.
Investment
activities
of
this
investment
company
could
have
a
material
impact
on
the
Fund.
    aa
Value
at
Beginning
of
Year
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Year
Number
of
Shares
Held
at
End
of
Year
Investment
Income
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Controlled
Affiliates
Dividends
Franklin
Liberty
Federal
Tax-Free
Bond
ETF
...............
$37,366,280
$
—
$
(2,701,236)
$
(52,514)
$
(786,530)
$
33,826,000
1,300,000
$
609,046
Total
Affiliated
Securities
...
$37,366,280
$—
$(2,701,236)
$(52,514)
$(786,530)
$33,826,000
$609,046
Franklin
High
Yield
Tax-Free
Income
Fund
Controlled
Affiliates
Dividends
Franklin
Dynamic
Municipal
Bond
ETF
...................
$30,278,325
$
17,337,375
$
—
$
—
$
(1,082,800)
$
46,532,900
1,805,000
$
856,719
Total
Affiliated
Securities
...
$30,278,325
$17,337,375
$—
$—
$(1,082,800)
$46,532,900
$856,719
3.
Transactions
with
Affiliates
(continued)
f.
Investments
in
Affiliated
Management
Investment
Companies
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
189
franklintempleton.com
Annual
Report
i.
Interfund
Transactions
Certain
or
all
Funds
engaged
in
purchases
and
sales
of
investments
with
funds
or
other
accounts
that
have
common
investment
managers
(or
affiliated
investment
managers),
directors,
trustees
or
officers.
These
purchases,
sales
and
the
related
net
realized
gains
(losses),
if
any,
for
the
year
ended
February
28,
2022,
were
as
follows:
4.
Expense
Offset
Arrangement
The
Funds
have entered
into
an
arrangement
with
their
custodian
whereby
credits
realized
as
a
result
of
uninvested
cash
balances
are
used
to
reduce
a
portion
of
the
Funds'
custodian
expenses.
During
the year
ended
February
28,
2022, the
custodian
fees
were
reduced
as
noted
in
the
Statements
of
Operations.
5.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains.
At
February
28,
2022,
the
capital
loss
carryforwards
were
as
follows:
Franklin
Federal
Intermediate-
Term
Tax-Free
Income
Fund
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Franklin
High
Yield
Tax-Free
Income
Fund
Purchases
..............................
$184,000,866
$201,720,000
$205,275,000
Sales
..................................
$197,947,394
$213,265,000
$362,105,940
Realized
gain
(loss)
.......................
$(1,502,987)
$—
$2,207,412
Franklin
Massachusetts
Tax-Free
Income
Fund
Franklin
Municipal
Green
Bond
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
Purchases
..............................
$4,782,801
$—
$—
Sales
..................................
$4,750,062
$—
$—
Realized
gain
(loss)
.......................
$(241,716)
$—
$—
Franklin
Federal
Intermediate-
Term
Tax-Free
Income
Fund
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Franklin
High
Yield
Tax-Free
Income
Fund
1
1
1
1
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
.............................
$
59,511,979
$
2,217,726
$
209,527,584
Long
term
.............................
—
4,999,871
610,931,368
Total
capital
loss
carryforwards
............
$59,511,979
$7,217,597
$820,458,952
3.
Transactions
with
Affiliates
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
190
franklintempleton.com
Annual
Report
During
the
year
ended
February
28,
2022,
the
following Funds
utilized
capital
loss
carryforwards
as
follows:
The
tax
character
of
distributions
paid
during
the
years
ended
February
28,
2022
and
February
28,
2021,
was
as
follows:
Franklin
Massachusetts
Tax-Free
Income
Fund
Franklin
Municipal
Green
Bond
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
1
1
1
1
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
.............................
$
11,255,518
$
4,456
$
15,596,669
Long
term
.............................
5,173,226
—
78,941,811
Total
capital
loss
carryforwards
............
$16,428,744
$4,456
$94,538,480
Franklin
Federal
Intermediate-
Term
Tax-Free
Income
Fund
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Franklin
High
Yield
Tax-Free
Income
Fund
Capital
loss
utilized
carryforwards
....
$19,432,814
$—
$80,435,866
Franklin
Massachusetts
Tax-Free
Income
Fund
Franklin
Municipal
Green
Bond
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
Capital
loss
utilized
carryforwards
....
$2,563,766
$—
$1,878,054
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
Franklin
Federal
Limited-Term
Tax-
Free
Income
Fund
2022
2021
2022
2021
Distributions
paid
from:
Tax
exempt
income
......................
$78,095,466
$83,434,519
$11,879,524
$13,898,457
Franklin
High
Yield
Tax-Free
Income
Fund
Franklin
Massachusetts
Tax-Free
Income
Fund
2022
2021
2022
2021
Distributions
paid
from:
Tax
exempt
income
......................
$247,563,958
$249,045,071
$8,841,201
$10,874,330
Franklin
Municipal
Green
Bond
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
2022
2021
2022
2021
Distributions
paid
from:
Tax
exempt
income
......................
$106,185
$80,328
$20,096,472
$22,214,013
5.
Income
Taxes
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
191
franklintempleton.com
Annual
Report
At
February
28,
2022
,
the
cost
of
investments
,
net
unrealized
appreciation
(depreciation)
,
undistributed
ordinary
income
and
undistributed
tax
exempt
income
for
income
tax
purposes
were
as
follows:
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatments
of
defaulted
securities
and
bond
discounts and
premiums.
6.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities)
for
the
year
ended
February
28,
2022,
were
as
follows:
Franklin
Federal
Intermediate-
Term
Tax-Free
Income
Fund
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Franklin
High
Yield
Tax-Free
Income
Fund
a
a
a
a
Cost
of
investments
.......................
$3,396,483,812
$1,397,226,087
$6,336,866,966
Unrealized
appreciation
.....................
$89,112,159
$13,635,211
$654,737,191
Unrealized
depreciation
.....................
(36,995,750)
(12,707,798)
(142,820,242)
Net
unrealized
appreciation
(depreciation)
.......
$52,116,409
$927,413
$511,916,949
Distributable
earnings:
Undistributed
ordinary
income
................
$947,140
$297,150
$3,726,469
Undistributed
tax
exempt
income
..............
472,556
49,915
24,010,542
Total
distributable
earnings
..................
$1,419,696
$347,065
$27,737,011
Franklin
Massachusetts
Tax-Free
Income
Fund
Franklin
Municipal
Green
Bond
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
a
a
a
a
Cost
of
investments
.......................
$390,165,902
$8,894,547
$759,945,596
Unrealized
appreciation
.....................
$17,265,076
$51,960
$35,145,611
Unrealized
depreciation
.....................
(5,445,998)
(173,380)
(6,413,364)
Net
unrealized
appreciation
(depreciation)
.......
$11,819,078
$(121,420)
$28,732,247
Distributable
earnings:
Undistributed
ordinary
income
................
$20,641
$—
$58,221
Undistributed
tax
exempt
income
..............
60,619
7,607
967,597
Total
distributable
earnings
..................
$81,260
$7,607
$1,025,818
Franklin
Federal
Intermediate-
Term
Tax-Free
Income
Fund
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Franklin
High
Yield
Tax-Free
Income
Fund
Purchases
..............................
$826,198,934
$418,934,220
$1,672,203,898
Sales
..................................
$951,325,730
$364,274,862
$1,290,971,917
5.
Income
Taxes
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
192
franklintempleton.com
Annual
Report
7.
Credit Risk
and
Defaulted
Securities
At
February
28,
2022,
Franklin
High
Yield
Tax-Free
Fund
had
53.3%
of
its
portfolio
invested
in
high
yield
securities
rated
below
investment
grade
as
determined
by
Nationally
Recognized
Statistical
Credit
Ratings
Organizations
and/or
internally,
by
investment
management.
These
securities
may
be
more
sensitive
to
economic
conditions
causing
greater
price
volatility
and
are
potentially
subject
to
a
greater
risk
of
loss
due
to
default
than
higher
rated
securities.
Certain
or
all
Funds
held
defaulted
securities
and/or
other
securities
for
which
the
income
has
been
deemed
uncollectible.
At
February
28,
2022,
the
aggregate
value
of
these
securities
for
Franklin
High
Yield
Tax-Free
Income
Fund
and
Franklin
New
Jersey
Tax-Free
Income
Fund
was
$204,787,352
and
$4,108,000,
representing
3.0%
and
0.5%,
respectively,
of
each
Fund's
net
assets.
The
Funds
discontinue
accruing
income
on
securities
for
which
income
has
been
deemed
uncollectible
and
provide
an
estimate
for
losses
on
interest
receivable.
The
securities
have
been
identified
in
the
accompanying
Statements
of
Investments.
8.
Concentration
of
Risk
Certain
or
all
Funds
invest
a
large
percentage
of
their
total
assets
in
obligations
of
issuers
within
their respective
state
and
U.S.
territories.
Such
concentration
may
subject
the
Funds
to
risks
associated
with
industrial
or
regional
matters,
and
economic,
political
or
legal
developments
occurring
within
those
states
and
U.S.
territories.
Investments
in
these
securities
are
sensitive
to
interest
rate
changes
and
credit
risk
of
the
issuer
and
may
subject
the
Funds
to
increased
market
volatility.
The
market
for
these
investments
may
be
limited,
which
may
make
them
difficult
to
buy
or
sell.
9.
Upcoming
Liquidation
On
February
28,
2022,
the
Board
for
Franklin
Municipal
Green
Bond
Fund
approved
a
proposal
to
liquidate
the
Fund.
The
Fund
was
closed
to
investors
effective
April
1,
2022.
The
Fund
is
scheduled
to
liquidate
on
or
about
May
6,
2022.
10.
Geopolitical
Risk
On
February
24,
2022,
Russia
engaged
in
military
actions
in
the
sovereign
territory
of
Ukraine.
The
current
political
and
financial
uncertainty
surrounding
Russia
and
Ukraine
may
increase
market
volatility
and
the
economic
risk
of
investing
in
securities
in
these
countries
and
may
also
cause
uncertainty
for
the
global
economy
and
broader
financial
markets.
The
ultimate
fallout
and
long-term
impact
from
these
events
are
not
known.
The
Fund
will
continue
to
assess
the
impact
on
valuations
and
liquidity
and
will
take
any
potential
actions
needed
in
accordance
with
procedures
approved
by
the
Board.
11.
Novel
Coronavirus
Pandemic 
The
global
outbreak
of
the
novel
coronavirus
disease,
known
as
COVID-19, has
caused
adverse
effects
on
many
companies,
sectors,
nations,
regions
and
the
markets
in
general, and
may
continue for
an unpredictable duration.
The
effects
of
this
pandemic
may
materially
impact
the
value
and
performance
of
the
Funds, their ability
to
buy
and
sell
fund
investments
at
appropriate
valuations
and their ability
to
achieve their investment
objectives.
Franklin
Massachusetts
Tax-Free
Income
Fund
Franklin
Municipal
Green
Bond
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
Purchases
..............................
$93,608,092
$2,239,260
$63,376,656
Sales
..................................
$124,963,222
$156,623
$94,669,057
6.
Investment
Transactions
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
193
franklintempleton.com
Annual
Report
12.
Credit
Facility
The
Funds,
together
with
other
U.S.
registered
and
foreign
investment
funds
(collectively,
Borrowers),
managed
by
Franklin
Templeton,
are
borrowers
in
a
joint
syndicated
senior
unsecured
credit
facility
totaling
$2.675
billion
(Global
Credit
Facility)
which
matures
on
February
3,
2023.
This
Global
Credit
Facility
provides
a
source
of
funds
to
the
Borrowers
for
temporary
and
emergency
purposes,
including
the
ability
to
meet
future
unanticipated
or
unusually
large
redemption
requests.
Under
the
terms
of
the
Global
Credit
Facility,
the
Funds
shall,
in
addition
to
interest
charged
on
any
borrowings
made
by
the
Funds
and
other
costs
incurred
by
the
Funds,
pay
their
share
of
fees
and
expenses
incurred
in
connection
with
the
implementation
and
maintenance
of
the
Global
Credit
Facility,
based
upon
their
relative
share
of
the
aggregate
net
assets
of
all
of
the
Borrowers,
including
an
annual
commitment
fee
of
0.15%
based
upon
the
unused
portion
of
the
Global
Credit
Facility.
These
fees
are
reflected
in
other
expenses
in
the
Statements
of
Operations.
During
the
year ended
February
28,
2022,
the
Funds
did
not
use
the
Global
Credit
Facility.
13.
Fair
Value
Measurements
The Funds
follow
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Funds'
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the Funds' financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
–
significant
unobservable
inputs
(including
the Funds'
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
A
summary
of
inputs
used
as
of
February
28,
2022,
in
valuing
the
Funds'
assets
carried
at
fair
value,
is
as
follows:
Level
1
Level
2
Level
3
Total
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
Assets:
Investments
in
Securities:
Management
Investment
Companies
.........
$
65,440,300
$
—
$
—
$
65,440,300
Municipal
Bonds
.........................
—
3,358,959,921
—
3,358,959,921
Short
Term
Investments
...................
—
24,200,000
—
24,200,000
Total
Investments
in
Securities
...........
$65,440,300
$3,383,159,921
$—
$3,448,600,221
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Assets:
Investments
in
Securities:
Management
Investment
Companies
.........
33,826,000
—
—
33,826,000
Senior
Floating
Rate
Interests
...............
—
—
5,377,471
5,377,471
Municipal
Bonds
.........................
—
1,143,725,029
—
1,143,725,029
Short
Term
Investments
...................
—
215,225,000
—
215,225,000
Total
Investments
in
Securities
...........
$33,826,000
$1,358,950,029
$5,377,471
$1,398,153,500
Franklin
High
Yield
Tax-Free
Income
Fund
Assets:
Investments
in
Securities:
Management
Investment
Companies
.........
46,532,900
—
—
46,532,900
Corporate
Bonds
........................
—
104,355,488
—
104,355,488
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
194
franklintempleton.com
Annual
Report
Level
1
Level
2
Level
3
Total
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
Assets:
(continued)
Municipal
Bonds
:
$
—
Alabama
.............................
—
$
174,669,907
$
—
$
174,669,907
Arizona
..............................
—
126,006,816
—
126,006,816
California
.............................
—
1,274,324,471
—
1,274,324,471
Colorado
.............................
—
371,700,845
—
371,700,845
Connecticut
...........................
—
37,618,491
—
37,618,491
Florida
...............................
—
957,928,622
—
957,928,622
Georgia
..............................
—
74,348,994
—
74,348,994
Idaho
................................
—
13,344,618
—
13,344,618
Illinois
...............................
—
260,775,291
—
260,775,291
Indiana
..............................
—
34,534,657
—
34,534,657
Iowa
................................
—
7,929,636
—
7,929,636
Kansas
..............................
—
5,596,392
—
5,596,392
Kentucky
.............................
—
29,388,410
—
29,388,410
Louisiana
.............................
—
82,428,887
—
82,428,887
Maryland
.............................
—
23,617,823
—
23,617,823
Massachusetts
........................
—
19,529,689
—
19,529,689
Michigan
.............................
—
152,290,702
—
152,290,702
Minnesota
............................
—
11,613,560
—
11,613,560
Mississippi
............................
—
79,739,413
—
79,739,413
Missouri
..............................
—
16,430,699
—
16,430,699
Montana
.............................
—
6,505,909
—
6,505,909
Nevada
..............................
—
75,994,586
—
75,994,586
New
Hampshire
........................
—
11,804,433
—
11,804,433
New
Jersey
...........................
—
248,431,313
—
248,431,313
New
Mexico
...........................
—
11,047,471
—
11,047,471
New
York
.............................
—
433,238,150
—
433,238,150
North
Carolina
.........................
—
9,456,782
—
9,456,782
North
Dakota
..........................
—
24,347,176
—
24,347,176
Ohio
................................
—
169,558,466
—
169,558,466
Oklahoma
............................
—
12,353,503
—
12,353,503
Oregon
..............................
—
45,176,840
—
45,176,840
Pennsylvania
..........................
—
130,831,027
—
130,831,027
South
Carolina
.........................
—
17,259,055
—
17,259,055
South
Dakota
..........................
—
14,521,429
—
14,521,429
Tennessee
............................
—
77,423,734
—
77,423,734
Texas
...............................
—
552,606,873
—
552,606,873
Utah
................................
—
32,540,471
—
32,540,471
Vermont
..............................
—
2,900,278
—
2,900,278
Virginia
..............................
—
69,414,103
—
69,414,103
Washington
...........................
—
82,251,083
1,192,000
83,443,083
West
Virginia
..........................
—
11,193,484
—
11,193,484
Wisconsin
............................
—
158,775,325
—
158,775,325
U.S.
Territories
..........................
District
of
Columbia
.....................
—
119,786,497
—
119,786,497
Pacific
Islands
.........................
—
9,005,042
—
9,005,042
Puerto
Rico
...........................
—
593,062,574
—
593,062,574
Short
Term
Investments
...................
—
23,400,000
—
23,400,000
Total
Investments
in
Securities
...........
$46,532,900
$6,801,059,015
$1,192,000
$6,848,783,915
13.
Fair
Value
Measurements
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
195
franklintempleton.com
Annual
Report
14.
New
Accounting
Pronouncements
In
March
2020,
the
Financial
Accounting
Standards
Board
(FASB)
issued
Accounting
Standards
Update
(ASU)
No.
2020-04,
Reference
Rate
Reform
(Topic
848)
–
Facilitation
of
the
Effects
of
Reference
Rate
Reform
on
Financial
Reporting.
In
January
2021,
the
FASB
issued
ASU
No.
2021-01,
with
further
amendments
to
Topic
848.
The
amendments
in
the
ASUs
provide
optional
temporary
accounting
recognition
and financial
reporting
relief
from
the
effect
of
certain
types
of
contract
modifications
due
to
the
planned
discontinuation
of
the
London
Interbank
Offered
Rate
(LIBOR)
and
other
interbank-offered
based
reference
rates
as
of
the
end
of
2021
and
2023. The
ASUs
are
effective
for
certain
reference
rate-related
contract
modifications
that
occur
during
the
period
March
12,
2020
through
December
31,
2022.
Management
has
reviewed
the
requirements
and
believes
the
adoption
of
these
ASUs
will
not
have
a
material
impact
on
the
financial
statements. 
15.
Subsequent
Events
The
Funds
have
evaluated
subsequent
events
through
the
issuance
of
the
financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure,
other
than
those
already
disclosed
in
the
financial
statements.
Level
1
Level
2
Level
3
Total
Franklin
Massachusetts
Tax-Free
Income
Fund
Assets:
Investments
in
Securities:
Municipal
Bonds
.........................
$
—
$
401,459,980
$
—
$
401,459,980
Short
Term
Investments
...................
—
525,000
—
525,000
Total
Investments
in
Securities
...........
$—
$401,984,980
$—
$401,984,980
Franklin
Municipal
Green
Bond
Fund
Assets:
Municipal
Bonds
.........................
—
8,773,127
—
8,773,127
Total
Investments
in
Securities
...........
$—
$8,773,127
$—
$8,773,127
Franklin
New
Jersey
Tax-Free
Income
Fund
Assets:
Investments
in
Securities:
Municipal
Bonds
.........................
—
785,877,843
—
785,877,843
Short
Term
Investments
...................
—
2,800,000
—
2,800,000
Total
Investments
in
Securities
...........
$—
$788,677,843
$—
$788,677,843
13.
Fair
Value
Measurements
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
196
franklintempleton.com
Annual
Report
Abbreviations
Currency
USD
United
States
Dollar
Selected
Portfolio
AGMC
Assured
Guaranty
Municipal
Corp.
AMBAC
American
Municipal
Bond
Assurance
Corp.
BAM
Build
America
Mutual
Assurance
Co.
BHAC
Berkshire
Hathaway
Assurance
Corp.
COP
Certificate
of
Participation
ETF
Exchange-Traded
Fund
ETM
Escrowed
to
Maturity
FHA
Federal
Housing
Administration
FNMA
Federal
National
Mortgage
Association
FRN
Floating
Rate
Note
GNMA
Government
National
Mortgage
Association
GO
General
Obligation
LIBOR
London
Inter-Bank
Offered
Rate
LOC
Letter
of
Credit
NATL
National
Reinsurance
Corp.
PSF
Permanent
School
Fund
SIFMA
Securities
Industry
and
Financial
Markets
Association
SOFR
Secured
Overnight
Financing
Rate
SPA
Standby
Purchase
Agreement
TBD
To
Be
Determined
Franklin
Tax-Free
Trust
Report
of
Independent
Registered
Public
Accounting
Firm
197
franklintempleton.com
Annual
Report
To
the
Board
of
Trustees
of
Franklin
Tax-Free
Trust
and
Shareholders
of
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund,
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund,
Franklin
High
Yield
Tax-Free
Income
Fund,
Franklin
Massachusetts
Tax-Free
Income
Fund,
Franklin
Municipal
Green
Bond
Fund
and
Franklin
New
Jersey
Tax-Free
Income
Fund
Opinions
on
the
Financial
Statements
We
have
audited
the
accompanying
statements
of
assets
and
liabilities,
including
the
statements
of
investments,
of
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund,
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund,
Franklin
High
Yield
Tax-Free
Income
Fund,
Franklin
Massachusetts
Tax-Free
Income
Fund,
Franklin
Municipal
Green
Bond
Fund
and
Franklin
New
Jersey
Tax-Free
Income
Fund
(six
of
the
funds
constituting
Franklin
Tax-Free
Trust,
hereafter
collectively
referred
to
as
the
"Funds")
as
of
February
28,
2022,
the
related
statements
of
operations
for
the
year
ended
February
28,
2022,
the
statements
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
ended
February
28,
2022,
including
the
related
notes,
and
the
financial
highlights
for
each
of
the
periods
indicated
therein
(collectively
referred
to
as
the
“financial
statements”).
In
our
opinion,
the
financial
statements
present
fairly,
in
all
material
respects,
the
financial
position
of
each
of
the
Funds
as
of
February
28,
2022,
the
results
of
each
of
their
operations
for
the
year
then
ended,
the
changes
in
each
of
their
net
assets
for
each
of
the
two
years
in
the
period
ended
February
28,
2022
and
each
of
the
financial
highlights
for
each
of
the
periods
indicated
therein
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America.
Basis
for
Opinions
These
financial
statements
are
the
responsibility
of
the
Funds’
management.
Our
responsibility
is
to
express
an
opinion
on
the
Funds’
financial
statements
based
on
our
audits.
We
are
a
public
accounting
firm
registered
with
the
Public
Company
Accounting
Oversight
Board
(United
States)
(PCAOB)
and
are
required
to
be
independent
with
respect
to
the
Funds
in
accordance
with
the
U.S.
federal
securities
laws
and
the
applicable
rules
and
regulations
of
the
Securities
and
Exchange
Commission
and
the
PCAOB.
We
conducted
our
audits
of
these
financial
statements
in
accordance
with
the
standards
of
the
PCAOB.
Those
standards
require
that
we
plan
and
perform
the
audit
to
obtain
reasonable
assurance
about
whether
the
financial
statements
are
free
of
material
misstatement,
whether
due
to
error
or
fraud.
Our
audits
included
performing
procedures
to
assess
the
risks
of
material
misstatement
of
the
financial
statements,
whether
due
to
error
or
fraud,
and
performing
procedures
that
respond
to
those
risks.
Such
procedures
included
examining,
on
a
test
basis,
evidence
regarding
the
amounts
and
disclosures
in
the
financial
statements.
Our
audits
also
included
evaluating
the
accounting
principles
used
and
significant
estimates
made
by
management,
as
well
as
evaluating
the
overall
presentation
of
the
financial
statements.
Our
procedures
included
confirmation
of
securities
owned
as
of
February
28,
2022
by
correspondence
with
the
custodian
and
brokers;
when
replies
were
not
received
from
brokers,
we
performed
other
auditing
procedures.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinions.
PricewaterhouseCoopers
LLP
San
Francisco,
California
April
18,
2022
We
have
served
as
the
auditor
of
one
or
more
investment
companies
in
the
Franklin
Templeton
Group
of
Funds
since
1948.
Franklin
Tax-Free
Trust
Tax
Information
(unaudited)
198
franklintempleton.com
Annual
Report
By
mid-February,
tax
information
related
to
a
shareholder's
proportionate
share
of
distributions
paid
during
the
preceding
calendar
year
will
be
received,
if
applicable.
Please
also
refer
to
www.franklintempleton.com
for
per
share
tax
information
related
to
any
distributions
paid
during
the
preceding
calendar
year.
Shareholders
are
advised
to
consult
with
their
tax
advisors
for
further
information
on
the
treatment
of
these
amounts
on
their
tax
returns.
The
following
tax
information
for
the
Funds
is
required
to
be
furnished
to
shareholders
with
respect
to
income
earned
and
distributions
paid
during
their
fiscal
year.
The
Funds
hereby
report
the
following
amou
nts,
or
if
subsequently
determined
to
be
different,
the
maximum
allowable
amounts,
for
the
fiscal
year
ended
February
28,
2022:
Pursuant
to:
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Franklin
High
Yield
Tax-Free
Income
Fund
Exempt-Interest
Dividends
Distributed
§852(b)(5)(A)
$78,095,466
$11,879,524
$247,563,958
Pursuant
to:
Franklin
Massachusetts
Tax-Free
Income
Fund
Franklin
Municipal
Green
Bond
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
Exempt-Interest
Dividends
Distributed
§852(b)(5)(A)
$8,841,201
$106,185
$20,096,472
Franklin
Tax-Free
Trust
Board
Members
and
Officers
199
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Annual
Report
The
name,
year
of
birth
and
address
of
the
officers
and
board
members,
as
well
as
their
affiliations,
positions
held
with
the
Trust,
principal
occupations
during
at
least
the
past
five
years
and
number
of
U.S.
registered
portfolios
overseen
in
the
Franklin
Templeton/Legg
Mason
fund
complex,
are
shown
below.
Generally,
each
board
member
serves
until
that
person’s
successor
is
elected
and
qualified.
Independent
Board
Members
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Harris
J.
Ashton
(1932)
Trustee
Since
1984
120
Bar-S
Foods
(meat
packing
company)
(1981-2010).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Director,
RBC
Holdings,
Inc.
(bank
holding
company)
(until
2002);
and
President,
Chief
Executive
Officer
and
Chairman
of
the
Board,
General
Host
Corporation
(nursery
and
craft
centers)
(until
1998).
Terrence
J.
Checki
(1945)
Trustee
Since
2017
101
Hess
Corporation
(exploration
of
oil
and
gas)
(2014-present).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Member
of
the
Council
on
Foreign
Relations
(1996-present);
Member
of
the
National
Committee
on
U.S.-China
Relations
(1999-present);
member
of
the
Board
of
Trustees
of
the
Economic
Club
of
New
York
(2013-present);
member
of
the
Board
of
Trustees
of
the
Foreign
Policy
Association
(2005-present);
member
of
the
board
of
directors
of
Council
of
the
Americas
(2007-present)
and
the
Tallberg
Foundation
(2018-present);
and
formerly
,
Executive
Vice
President
of
the
Federal
Reserve
Bank
of
New
York
and
Head
of
its
Emerging
Markets
and
Internal
Affairs
Group
and
Member
of
Management
Committee
(1995-2014);
and
Visiting
Fellow
at
the
Council
on
Foreign
Relations
(2014).
Mary
C.
Choksi
(1950)
Trustee
Since
2014
121
Omnicom
Group
Inc.
(advertising
and
marketing
communications
services)
(2011-present)
and
White
Mountains
Insurance
Group,
Ltd.
(holding
company)
(2017-present);
and
formerly
,
Avis
Budget
Group
Inc.
(car
rental)
(2007-2020).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Founder
and
Senior
Advisor,
Strategic
Investment
Group
(investment
management
group)
(2015-2017);
Founding
Partner
and
Senior
Managing
Director,
Strategic
Investment
Group
(1987-2015);
Founding
Partner
and
Managing
Director,
Emerging
Markets
Management
LLC
(investment
management
firm)
(1987-2011);
and
Loan
Officer/Senior
Loan
Officer/Senior
Pension
Investment
Officer,
World
Bank
Group
(international
financial
institution)
(1977-1987).
Franklin
Tax-Free
Trust
200
franklintempleton.com
Annual
Report
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Edith
E.
Holiday
(1952)
Lead
Independent
Trustee
Trustee
since
1998
and
Lead
Independent
Trustee
since
2019
121
Hess
Corporation
(exploration
of
oil
and
gas)
(1993-present),
Santander
Consumer
USA
Holdings,
Inc.
(consumer
finance)
(2016-present);
Santander
Holdings
USA
(holding
company)
(2019-present);
and
formerly
,
Canadian
National
Railway
(railroad)
(2001-2021),
White
Mountains
Insurance
Group,
Ltd.
(holding
company)
(2004-
2021),
RTI
International
Metals,
Inc.
(manufacture
and
distribution
of
titanium)
(1999-2015)
and
H.J.
Heinz
Company
(processed
foods
and
allied
products)
(1994-2013).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
or
Trustee
of
various
companies
and
trusts;
and
formerly
,
Assistant
to
the
President
of
the
United
States
and
Secretary
of
the
Cabinet
(1990-1993);
General
Counsel
to
the
United
States
Treasury
Department
(1989-1990);
and
Counselor
to
the
Secretary
and
Assistant
Secretary
for
Public
Affairs
and
Public
Liaison-United
States
Treasury
Department
(1988-1989).
J.
Michael
Luttig
(1954)
Trustee
Since
2009
121
Boeing
Capital
Corporation
(aircraft
financing)
(2006-2010).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Counselor
and
Special
Advisor
to
the
CEO
and
Board
of
Directors
of
the
Coca-Cola
Company
(beverage
company)
(2021-present);
and
formerly
,
Counselor
and
Senior
Advisor
to
the
Chairman,
CEO,
and
Board
of
Directors,
of
The
Boeing
Company
(aerospace
company),
and
member
of
the
Executive
Council
(2019-2020);
Executive
Vice
President,
General
Counsel
and
member
of
the
Executive
Council,
The
Boeing
Company
(2006-2019);
and
Federal
Appeals
Court
Judge,
United
States
Court
of
Appeals
for
the
Fourth
Circuit
(1991-2006).
Larry
D.
Thompson
(1945)
Trustee
Since
2007
121
Graham
Holdings
Company
(education
and
media
organization)
(2011-2021);
The
Southern
Company
(energy
company)
(2014-2020;
previously
2010-
2012)
and
Cbeyond,
Inc.
(business
communications
provider)
(2010-
2012).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
Counsel,
Finch
McCranie,
LLP
(law
firm)
(2015-present);
John
A.
Sibley
Professor
of
Corporate
and
Business
Law,
University
of
Georgia
School
of
Law
(2015-present;
previously
2011-2012);
and
formerly
,
Independent
Compliance
Monitor
and
Auditor,
Volkswagen
AG
(manufacturer
of
automobiles
and
commercial
vehicles)
(2017-2020);
Executive
Vice
President
-
Government
Affairs,
General
Counsel
and
Corporate
Secretary,
PepsiCo,
Inc.
(consumer
products)
(2012-2014);
Senior
Vice
President
-
Government
Affairs,
General
Counsel
and
Secretary,
PepsiCo,
Inc.
(2004-2011);
Senior
Fellow
of
The
Brookings
Institution
(2003-2004);
Visiting
Professor,
University
of
Georgia
School
of
Law
(2004);
and
Deputy
Attorney
General,
U.S.
Department
of
Justice
(2001-2003).
Independent
Board
Members
(continued)
Franklin
Tax-Free
Trust
201
franklintempleton.com
Annual
Report
Interested
Board
Members
and
Officers
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Valerie
M.
Williams
(1956)
Trustee
Since
May
2021
101
Omnicom
Group,
Inc.
(advertising
and
marketing
communications
services)
(2016-present),
DTE
Energy
Co.
(gas
and
electric
utility)
(2018-present),
Devon
Energy
Corporation
(exploration
and
production
of
oil
and
gas)
(2021-present);
and
formerly
,
WPX
Energy,
Inc.
(exploration
and
production
of
oil
and
gas)
(2018-
2021).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Regional
Assurance
Managing
Partner,
Ernst
&
Young
LLP
(public
accounting)
(2005-2016),
various
roles
of
increasing
responsibility
at
Ernst
&
Young
(1981-2005).
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
**Gregory
E.
Johnson
(1961)
Trustee
Since
2007
132
None
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Executive
Chairman,
Chairman
of
the
Board
and
Director,
Franklin
Resources,
Inc.;
officer
and/or
director
or
trustee,
as
the
case
may
be,
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex;
Vice
Chairman,
Investment
Company
Institute;
and
formerly
,
Chief
Executive
Officer
(2013-2020)
and
President
(1994-2015)
Franklin
Resources,
Inc.
**Rupert
H.
Johnson,
Jr.
(1940)
Chairman
of
the
Board
and
Trustee
Since
2013
121
None
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
(Vice
Chairman),
Franklin
Resources,
Inc.;
Director,
Franklin
Advisers,
Inc.;
and
officer
and/or
director
or
trustee,
as
the
case
may
be,
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Ben
Barber
(1969)
Vice
President
Since
2020
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Vice
President,
Franklin
Advisers,
Inc.;
Director,
Municipal
Bonds;
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex;
and
formerly
,
Co-Head
of
Municipal
Bonds,
Goldman
Sachs
Asset
Management
(1999-2020).
Alison
E.
Baur
(1964)
Vice
President
Since
2012
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Deputy
General
Counsel,
Franklin
Templeton;
and
officer
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Independent
Board
Members
(continued)
Franklin
Tax-Free
Trust
202
franklintempleton.com
Annual
Report
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Breda
M.
Beckerle
(1958)
Chief
Compliance
Officer
Since
2020
Not
Applicable
Not
Applicable
280
Park
Avenue
New
York,
NY
10017
Principal
Occupation
During
at
Least
the
Past
5
Years:
Chief
Compliance
Officer,
Fiduciary
Investment
Management
International,
Inc.,
Franklin
Advisers,
Inc.,
Franklin
Mutual
Advisers,
LLC,
Franklin
Templeton
Institutional,
LLC;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Sonal
Desai,
Ph.D.
(1963)
President
and
Chief
Executive
Officer
–
Investment
Management
Since
2018
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
and
Executive
Vice
President,
Franklin
Advisers,
Inc.;
Executive
Vice
President,
Franklin
Templeton
Institutional,
LLC;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Steven
J.
Gray
(1955)
Vice
President
and
Co-Secretary
Vice
President
since
2009
and
Co-Secretary
since
2019
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Associate
General
Counsel,
Franklin
Templeton;
Vice
President,
FASA,
LLC;
Assistant
Secretary,
Franklin
Distributors,
LLC;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Matthew
T.
Hinkle
(1971)
Chief
Executive
Officer
–
Finance
and
Administration
Since
2017
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Vice
President,
Franklin
Templeton
Services,
LLC;
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex;
and
formerly
,
Vice
President,
Global
Tax
(2012-April
2017)
and
Treasurer/Assistant
Treasurer,
Franklin
Templeton
(2009-2017).
Susan
Kerr
(1949)
Vice
President
–
AML
Compliance
Since
July
2021
Not
Applicable
Not
Applicable
620
Eighth
Avenue
New
York,
NY
10018
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Compliance
Analyst,
Franklin
Templeton;
Chief
Anti-Money
Laundering
Compliance
Officer,
Legg
Mason
&
Co.,
or
its
affiliates;
Anti
Money
Laundering
Compliance
Officer;
Senior
Compliance
Officer,
LMIS;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Christopher
Kings
(1974)
Chief
Financial
Officer,
Chief
Accounting
Officer
and
Treasurer
Since
January
2022
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Treasurer,
U.S.
Fund
Administration
&
Reporting;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Navid
J.
Tofigh
(1972)
Vice
President
Since
2015
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Associate
General
Counsel,
Franklin
Templeton;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Interested
Board
Members
and
Officers
(continued)
Franklin
Tax-Free
Trust
203
franklintempleton.com
Annual
Report
*We
base
the
number
of
portfolios
on
each
separate
series
of
the
U.S.
registered
investment
companies
within
the
Franklin
Templeton/Legg
Mason
fund
complex.
These
portfolios
have
a
common
investment
manager
or
affiliated
investment
managers.
**Gregory
E.
Johnson
is
considered
to
be
an
interested
person
of
the
Fund
under
the
federal
securities
laws
due
to
his
position
as
an
officer
and
director
of
Franklin
Resources,
Inc.
(Resources),
which
is
the
parent
company
of
the
Fund’s
investment
manager
and
distributor.
Rupert
H.
Johnson,
Jr.
is
considered
to
be
an
interested
person
of
the
Fund
under
the
federal
securities
laws
due
to
his
position
as
an
officer
and
director
and
major
shareholder
of
Resources.
Note
1:
Rupert
H.
Johnson,
Jr.
is
the
uncle
of
Gregory
E.
Johnson.
Note
2:
Officer
information
is
current
as
of
the
date
of
this
report.
It
is
possible
that
after
this
date,
information
about
officers
may
change.
The
Sarbanes-Oxley
Act
of
2002
and
Rules
adopted
by
the
Securities
and
Exchange
Commission
require
the
Fund
to
disclose
whether
the
Fund’s
Audit
Committee
includes
at
least
one
member
who
is
an
audit
committee
financial
expert
within
the
meaning
of
such
Act
and
Rules.
The
Fund’s
Board
has
determined
that
there
is
at
least
one
such
financial
expert
on
the
Audit
Committee
and
has
designated
Mary
C.
Choksi
as
its
audit
committee
financial
expert.
The
Board
believes
that
Ms.
Choksi
qualifies
as
such
an
expert
in
view
of
her
extensive
business
background
and
experience.
She
served
as
a
director
of
Avis
Budget
Group,
Inc.
(2007
to
2020)
and
formerly,
Founder
and
Senior
Advisor,
Strategic
Investment
Group
(1987
to
2017).
Ms.
Choksi
has
been
a
Member
of
the
Fund’s
Audit
Committee
since
2014.
As
a
result
of
such
background
and
experience,
the
Board
believes
that
Ms.
Choksi
has
acquired
an
understanding
of
generally
accepted
accounting
principles
and
financial
statements,
the
general
application
of
such
principles
in
connection
with
the
accounting
estimates,
accruals
and
reserves,
and
analyzing
and
evaluating
financial
statements
that
present
a
breadth
and
level
of
complexity
of
accounting
issues
generally
comparable
to
those
of
the
Fund,
as
well
as
an
understanding
of
internal
controls
and
procedures
for
financial
reporting
and
an
understanding
of
audit
committee
functions.
Ms.
Choksi
is
an
independent
Board
member
as
that
term
is
defined
under
the
relevant
Securities
and
Exchange
Commission
Rules
and
Releases.
The
Statement
of
Additional
Information
(SAI)
includes
additional
information
about
the
board
members
and
is
available,
without
charge,
upon
request.
Shareholders
may
call
(800)
DIAL
BEN/342-5236
to
request
the
SAI.
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Craig
S.
Tyle
(1960)
Vice
President
Since
2005
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
General
Counsel
and
Executive
Vice
President,
Franklin
Resources,
Inc.;
and
officer
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Lori
A.
Weber
(1964)
Vice
President
and
Co-Secretary
Vice
President
since
2011
and
Co-Secretary
since
2019
Not
Applicable
Not
Applicable
300
S.E.
2nd
Street
Fort
Lauderdale,
FL
33301-
1923
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Associate
General
Counsel,
Franklin
Templeton;
Assistant
Secretary,
Franklin
Resources,
Inc.;
Vice
President
and
Secretary,
Templeton
Investment
Counsel,
LLC;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Interested
Board
Members
and
Officers
(continued)
Franklin
Tax-Free
Trust
Shareholder
Information
204
franklintempleton.com
Annual
Report
Board
Approval
of
Investment
Management
Agreements
FRANKLIN
TAX-FREE
TRUST
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Franklin
High
Yield
Tax-Free
Income
Fund
Franklin
Massachusetts
Tax-Free
Income
Fund
Franklin
Municipal
Green
Bond
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
(each
a
Fund)
At
an
in-person
meeting
held
on
February
28,
2022
(Meeting),
the
Board
of
Trustees
(Board)
of
Franklin
Tax-
Free
Trust
(Trust),
including
a
majority
of
the
trustees
who
are
not
“interested
persons”
as
defined
in
the
Investment
Company
Act
of
1940
(Independent
Trustees),
reviewed
and
approved
the
continuance
of
the
investment
management
agreement
between
Franklin
Advisers,
Inc.
(Manager)
and
the
Trust,
on
behalf
of
each
Fund
(each
a
Management
Agreement)
for
an
additional
one-year
period.
The
Independent
Trustees
received
advice
from
and
met
separately
with
Independent
Trustee
counsel
in
considering
whether
to
approve
the
continuation
of
each
Management
Agreement.
Although
the
Management
Agreements
for
the
Funds
were
considered
at
the
same
Board
meeting,
the
Board
considered
the
information
provided
to
it
about
the
Funds
together
and
with
respect
to
each
Fund
separately
as
the
Board
deemed
appropriate.
In
considering
the
continuation
of
each
Management
Agreement,
the
Board
reviewed
and
considered
information
provided
by
the
Manager
at
the
Meeting
and
throughout
the
year
at
meetings
of
the
Board
and
its
committees.
The
Board
also
reviewed
and
considered
information
provided
in
response
to
a
detailed
set
of
requests
for
information
submitted
to
the
Manager
by
Independent
Trustee
counsel
on
behalf
of
the
Independent
Trustees
in
connection
with
the
annual
contract
renewal
process.
In
addition,
prior
to
the
Meeting,
the
Independent
Trustees
held
a
virtual
contract
renewal
meeting
at
which
the
Independent
Trustees
first
conferred
amongst
themselves
and
Independent
Trustee
counsel
about
contract
renewal
matters;
and
then
met
with
management
to
request
additional
information
that
the
Independent
Trustees
reviewed
and
considered
at
the
Meeting.
The
Board
reviewed
and
considered
all
of
the
factors
it
deemed
relevant
in
approving
the
continuance
of
each
Management
Agreement,
including,
but
not
limited
to:
(i)
the
nature,
extent
and
quality
of
the
services
provided
by
the
Manager;
(ii)
the
investment
performance
of
each
Fund;
(iii)
the
costs
of
the
services
provided
and
profits
realized
by
the
Manager
and
its
affiliates
from
the
relationship
with
each
Fund;
(iv)
the
extent
to
which
economies
of
scale
are
realized
as
each
Fund
grows;
and
(v)
whether
fee
levels
reflect
these
economies
of
scale
for
the
benefit
of
Fund
investors.
In
approving
the
continuance
of
each
Management
Agreement,
the
Board,
including
a
majority
of
the
Independent
Trustees,
determined
that
the
terms
of
the
Management
Agreement
are
fair
and
reasonable
and
that
the
continuance
of
such
Management
Agreement
is
in
the
best
interests
of
the
applicable
Fund
and
its
shareholders.
While
attention
was
given
to
all
information
furnished,
the
following
discusses
some
primary
factors
relevant
to
the
Board’s
determination.
Nature,
Extent
and
Quality
of
Services
The
Board
reviewed
and
considered
information
regarding
the
nature,
extent
and
quality
of
investment
management
services
provided
by
the
Manager
and
its
affiliates
to
the
Funds
and
their
shareholders.
This
information
included,
among
other
things,
the
qualifications,
background
and
experience
of
the
senior
management
and
investment
personnel
of
the
Manager,
as
well
as
information
on
succession
planning
where
appropriate;
the
structure
of
investment
personnel
compensation;
oversight
of
third-
party
service
providers;
investment
performance
reports
and
related
financial
information
for
each
Fund;
reports
on
expenses
and
shareholder
services;
legal
and
compliance
matters;
risk
controls;
pricing
and
other
services
provided
by
the
Manager
and
its
affiliates;
and
management
fees
charged
by
the
Manager
and
its
affiliates
to
US
funds
and
other
accounts,
including
management’s
explanation
of
differences
among
accounts
where
relevant.
The
Board
also
reviewed
and
considered
an
annual
report
on
payments
made
by
Franklin
Templeton
(FT)
or
the
Funds
to
financial
intermediaries,
as
well
as
a
memorandum
relating
to
third-
party
servicing
arrangements,
which
included
discussion
of
the
changing
distribution
landscape
for
the
Funds.
The
Board
acknowledged
the
ongoing
integration
of
the
Legg
Mason
family
of
funds
into
the
FT
family
of
funds
and
developing
strategies
to
address
areas
of
heightened
concern
in
the
mutual
fund
industry,
including
various
regulatory
initiatives
and
recent
geopolitical
concerns.
Franklin
Tax-Free
Trust
Shareholder
Information
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The
Board
also
reviewed
and
considered
the
benefits
provided
to
Fund
shareholders
of
investing
in
a
fund
that
is
part
of
the
FT
family
of
funds.
The
Board
noted
the
financial
position
of
Franklin
Resources,
Inc.
(FRI),
the
Manager’s
parent,
and
its
commitment
to
the
mutual
fund
business
as
evidenced
by
its
reassessment
of
the
fund
offerings
in
response
to
the
market
environment
and
project
initiatives
and
capital
investments
relating
to
the
services
provided
to
the
Funds
by
the
FT
organization.
The
Board
specifically
noted
FT’s
commitment
to
being
a
global
leader
in
stewardship
and
sustainability
and
the
recent
addition
of
a
senior
executive
focused
on
environmental,
social
and
governance
and
climate
control
initiatives.
Following
consideration
of
such
information,
the
Board
was
satisfied
with
the
nature,
extent
and
quality
of
services
provided
by
the
Manager
and
its
affiliates
to
the
Funds
and
their
shareholders.
Fund
Performance
The
Board
reviewed
and
considered
the
performance
results
of
each
Fund
over
various
time
periods
ended
November
30,
2021.
The
Board
considered
the
performance
returns
for
each
Fund
in
comparison
to
the
performance
returns
of
mutual
funds
deemed
comparable
to
the
Fund
included
in
a
universe
(Performance
Universe)
selected
by
Broadridge
Financial
Solutions,
Inc.
(Broadridge),
an
independent
provider
of
investment
company
data.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
a
Performance
Universe.
The
Board
also
reviewed
and
considered
Fund
performance
reports
provided
and
discussions
that
occurred
with
portfolio
managers
at
Board
meetings
throughout
the
year.
A
summary
of
each
Fund’s
performance
results
is
below.
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund,
Franklin
High
Yield
Tax-Free
Income
Fund,
and
Franklin
New
Jersey
Tax-Free
Income
Fund
-
The
Performance
Universe
for
the
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
included
the
Fund
and
all
retail
and
institutional
intermediate
municipal
debt
funds.
The
Performance
Universe
for
the
Franklin
High
Yield
Tax-Free
Income
Fund
included
the
Fund
and
all
retail
and
institutional
high
yield
municipal
debt
funds.
The
Performance
Universe
for
the
Franklin
New
Jersey
Tax-Free
Income
Fund
included
the
Fund
and
all
retail
and
institutional
New
Jersey
municipal
debt
funds.
The
Board
noted
that
the
Funds’
annualized
income
returns
for
the
one-,
three-,
five-
and
10-year
periods
were
above
the
medians
of
their
respective
Performance
Universes.
The
Board
also
noted
that
the
Funds’
annualized
total
return
for
the
one,
three-,
five-
and
10-year
periods
were
below
the
medians
of
their
respective
Performance
Universes.
The
Board
considered
the
income-related
attributes
of
each
Fund
(such
as
fund
name,
investment
objective
and/or
investment
strategy)
and
that
the
evaluation
of
each
Fund’s
performance
relative
to
the
Fund’s
peers
on
an
income
return
basis
was
appropriate
given
its
income-
related
attributes
and
investor
expectations.
The
Board
concluded
that
the
Funds’
performance
was
satisfactory.
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
-
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
short
municipal
debt
funds.
The
Board
noted
that
the
Fund’s
annualized
income
return
for
the
one-,
three-,
five-,
and
10-year
periods
was
above
the
median
of
its
Performance
Universe.
The
Board
also
noted
that
the
Fund’s
annualized
total
return
for
the
three-
five-
and
10-year
and
periods
was
above
the
median
of
its
Performance
Universe,
but
for
the
one-year
period
was
below
the
median
of
its
Performance
Universe.
The
Board
considered
the
income-related
attributes
of
the
Fund
(such
as
fund
name,
investment
objective
and/or
investment
strategy)
and
that
the
evaluation
of
the
Fund’s
performance
relative
to
its
peers
on
an
income
return
basis
was
appropriate
given
the
Fund’s
income-related
attributes
and
investor
expectations.
The
Board
concluded
that
the
Fund’s
performance
was
satisfactory.
Franklin
Massachusetts
Tax-Free
Income
Fund
-
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
Massachusetts
municipal
debt
funds.
The
Board
noted
that
the
Fund’s
annualized
income
return
for
the
one-,
three-,
five-
and
10-year
periods
was
above
the
median
of
its
Performance
Universe.
The
Board
also
noted
that
the
Fund’s
annualized
total
return
for
the
one-,
three-,
and
five-
year
periods
was
below
the
median
of
its
Performance
Universe,
and
equal
to
the
median
of
its
Performance
Universe
for
the
10-year
period.
The
Board
considered
the
income-related
attributes
of
the
Fund
(such
as
fund
name,
investment
objective
and/or
investment
strategy)
and
that
the
evaluation
of
the
Fund’s
performance
relative
to
its
peers
on
an
income
return
basis
was
appropriate
given
the
Fund’s
income-related
attributes
and
investor
expectations.
The
Board
concluded
that
the
Fund’s
performance
was
satisfactory.
Franklin
Municipal
Green
Bond
Fund
-
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
general
and
insured
municipal
debt
funds.
The
Board
noted
that
the
Fund
commenced
operations
on
October
1,
2019
and
was
100%
owned
by
FRI
until
the
Fund
was
offered
to
the
public
for
investment
beginning
on
July
24,
2020.
The
Board
also
noted
that
the
Fund’s
annualized
income
return
and
annualized
total
return
for
the
one-year
period
were
below
the
medians
and
in
the
fifth
quintile
(worst)
of
its
Performance
Universe.
The
Board
Franklin
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Trust
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further
noted
management’s
proposal
and
the
Board’s
approval
at
the
Meeting
to
liquidate
the
Fund
effective
on
or
about
May
6,
2022
in
light
of
the
Fund’s
limited
growth
in
assets
since
its
inception.
The
Board
concluded
that
the
Fund’s
Management
Agreement
should
be
continued
for
an
additional
one-year
period,
while
management
takes
the
requisite
steps
to
liquidate
the
Fund.
Comparative
Fees
and
Expenses
The
Board
reviewed
and
considered
information
regarding
each
Fund’s
actual
total
expense
ratio
and
its
various
components,
including,
as
applicable,
management
fees;
transfer
agent
expenses;
underlying
fund
expenses;
Rule
12b-1
and
non-Rule
12b-1
service
fees;
and
other
non-
management
fees.
The
Board
also
noted
the
quarterly
and
annual
reports
it
receives
on
all
marketing
support
payments
made
by
FT
to
financial
intermediaries.
The
Board
considered
the
actual
total
expense
ratio
and,
separately,
the
contractual
management
fee
rate,
without
the
effect
of
fee
waivers,
if
any
(Management
Rate)
of
each
Fund
in
comparison
to
the
median
expense
ratio
and
median
Management
Rate,
respectively,
of
other
mutual
funds
deemed
comparable
to
and
with
a
similar
expense
structure
to
the
Fund
selected
by
Broadridge
(Expense
Group).
Broadridge
fee
and
expense
data
is
based
upon
information
taken
from
each
fund’s
most
recent
annual
or
semi-annual
report,
which
reflects
historical
asset
levels
that
may
be
quite
different
from
those
currently
existing,
particularly
in
a
period
of
market
volatility.
While
recognizing
such
inherent
limitation
and
the
fact
that
expense
ratios
and
Management
Rates
generally
increase
as
assets
decline
and
decrease
as
assets
grow,
the
Board
believed
the
independent
analysis
conducted
by
Broadridge
to
be
an
appropriate
measure
of
comparative
fees
and
expenses.
The
Broadridge
Management
Rate
includes
administrative
charges,
and
the
actual
total
expense
ratio,
for
comparative
consistency,
was
shown
for
Class
A1
for
each
Fund,
except
Franklin
Municipal
Green
Bond
Fund,
for
which
Class
A
was
shown,
and
for
Class
A
shares
for
each
other
fund
in
the
applicable
Expense
Group,
except
that
Class
V
shares
were
also
shown
for
the
Expense
Group
for
Franklin
Federal
Intermediate-Term
Tax-
Free
Income
Fund.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
an
Expense
Group.
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund,
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund,
Franklin
Massachusetts
Tax-Free
Income
Fund
and
Franklin
Municipal
Green
Bond
Fund
-
The
Expense
Group
for
the
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
included
the
Fund
and
10
other
intermediate
municipal
debt
funds.
The
Expense
Group
for
the
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
included
the
Fund
and
10
other
short
municipal
debt
funds.
The
Expense
Group
for
the
Franklin
Massachusetts
Tax-Free
Income
Fund
included
the
Fund
and
seven
other
Massachusetts
municipal
debt
funds.
The
Expense
Group
for
the
Franklin
Municipal
Green
Bond
Fund
included
the
Fund
and
10
other
general
and
insured
municipal
debt
funds.
The
Board
noted
that
the
Management
Rates
for
the
Funds
were
above
the
medians
of
their
respective
Expense
Groups,
but
their
actual
total
expense
ratios
were
below
the
medians
of
their
respective
Expense
Groups.
The
Board
also
noted
that
the
Management
Rate
for
each
of
the
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
and
Franklin
Massachusetts
Tax-Free
Income
Fund
was
only
slightly
above
the
median
of
the
applicable
Fund’s
respective
Expense
Group
and
that
the
Franklin
Federal
Intermediate-
Term
Tax-Free
Income
Fund’s,
Franklin
Federal
Limited-
Term
Tax-Free
Income
Fund’s
and
Franklin
Municipal
Green
Bond
Fund’s
actual
total
expense
ratios
reflected
fee
waivers
from
management.
The
Board
concluded
that
the
Management
Rates
charged
to
the
Funds
are
reasonable
.
Franklin
High
Yield
Tax-Free
Income
Fund
-
The
Expense
Group
for
the
Fund
included
the
Fund
and
14
other
high
yield
municipal
debt
funds.
The
Board
noted
that
the
Management
Rate
for
the
Fund
was
equal
to
the
median
of
its
Expense
Group.
The
Board
also
noted
that
the
actual
total
expense
ratio
for
the
Fund
was
below
the
median
of
its
Expense
Group.
The
Board
concluded
that
the
Management
Rate
charged
to
the
Fund
is
reasonable.
Franklin
New
Jersey
Tax-Free
Income
Fund
-
The
Expense
Group
for
the
Fund
included
the
Fund
and
nine
other
New
Jersey
municipal
debt
funds.
The
Board
noted
that
the
Management
Rate
and
total
expense
ratio
for
the
Fund
were
below
the
medians
of
its
Expense
Group.
The
Board
concluded
that
the
Management
Rate
charged
to
the
Fund
is
reasonable.
Profitability
The
Board
reviewed
and
considered
information
regarding
the
profits
realized
by
the
Manager
and
its
affiliates
in
connection
with
the
operation
of
each
Fund.
In
this
respect,
the
Board
considered
the
Fund
profitability
analysis
provided
by
the
Manager
that
addresses
the
overall
profitability
of
FT’s
US
fund
business,
as
well
as
its
profits
in
providing
investment
management
and
other
services
to
each
of
the
individual
funds
during
the
12-month
period
ended
September
30,
2021,
being
the
most
recent
fiscal
year-
end
for
FRI.
The
Board
noted
that
although
management
continually
makes
refinements
to
its
methodologies
used
in
calculating
profitability
in
response
to
organizational
and
product-related
changes,
the
overall
methodology
has
Franklin
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remained
consistent
with
that
used
in
the
Funds’
profitability
report
presentations
from
prior
years.
The
Board
also
noted
that
PricewaterhouseCoopers
LLP,
auditor
to
FRI
and
certain
FT
funds,
has
been
engaged
by
the
Manager
to
periodically
review
and
assess
the
allocation
methodologies
to
be
used
solely
by
the
Funds’
Board
with
respect
to
the
profitability
analysis.
The
Board
noted
management’s
belief
that
costs
incurred
in
establishing
the
infrastructure
necessary
for
the
type
of
mutual
fund
operations
conducted
by
the
Manager
and
its
affiliates
may
not
be
fully
reflected
in
the
expenses
allocated
to
each
Fund
in
determining
its
profitability,
as
well
as
the
fact
that
the
level
of
profits,
to
a
certain
extent,
reflected
operational
cost
savings
and
efficiencies
initiated
by
management.
As
part
of
this
evaluation,
the
Board
considered
management’s
outsourcing
of
certain
operations,
which
effort
has
required
considerable
up
front
expenditures
by
the
Manager
but,
over
the
long
run
is
expected
to
result
in
greater
efficiencies.
The
Board
also
noted
management’s
expenditures
in
improving
shareholder
services
provided
to
the
Funds,
as
well
as
the
need
to
implement
systems
and
meet
additional
regulatory
and
compliance
requirements
resulting
from
recent
US
Securities
and
Exchange
Commission
and
other
regulatory
requirements.
The
Board
also
considered
the
extent
to
which
the
Manager
and
its
affiliates
might
derive
ancillary
benefits
from
fund
operations,
including
revenues
generated
from
transfer
agent
services,
potential
benefits
resulting
from
personnel
and
systems
enhancements
necessitated
by
fund
growth,
as
well
as
increased
leverage
with
service
providers
and
counterparties.
Based
upon
its
consideration
of
all
these
factors,
the
Board
concluded
that
the
level
of
profits
realized
by
the
Manager
and
its
affiliates
from
providing
services
to
each
Fund
was
not
excessive
in
view
of
the
nature,
extent
and
quality
of
services
provided
to
each
Fund.
Economies
of
Scale
The
Board
reviewed
and
considered
the
extent
to
which
the
Manager
may
realize
economies
of
scale,
if
any,
as
each
Fund
grows
larger
and
whether
each
Fund’s
management
fee
structure
reflects
any
economies
of
scale
for
the
benefit
of
shareholders.
With
respect
to
possible
economies
of
scale,
the
Board
noted
the
existence
of
management
fee
breakpoints,
which
operate
generally
to
share
any
economies
of
scale
with
a
Fund’s
shareholders
by
reducing
the
Fund’s
effective
management
fees
as
the
Fund
grows
in
size.
The
Board
considered
the
Manager’s
view
that
any
analyses
of
potential
economies
of
scale
in
managing
a
particular
fund
are
inherently
limited
in
light
of
the
joint
and
common
costs
and
investments
the
Manager
incurs
across
the
FT
family
of
funds
as
a
whole.
The
Board
also
noted
that
the
Franklin
Municipal
Green
Bond
Fund
has
been
in
operation
for
less
than
three
years
and
would
not
be
expected
to
achieve
economies
of
scale
in
the
near
future.
The
Board
concluded
that
to
the
extent
economies
of
scale
may
be
realized
by
the
Manager
and
its
affiliates,
each
Fund’s
management
fee
structure
provided
a
sharing
of
benefits
with
the
Fund
and
its
shareholders
as
the
Fund
grows.
Conclusion
Based
on
its
review,
consideration
and
evaluation
of
all
factors
it
believed
relevant,
including
the
above-described
factors
and
conclusions,
the
Board
unanimously
approved
the
continuation
of
each
Management
Agreement
for
an
additional
one-year
period.
Proxy
Voting
Policies
and
Procedures
The
Trust’s
investment
manager
has
established
Proxy
Voting
Policies
and
Procedures
(Policies)
that
the
Trust
uses
to
determine
how
to
vote
proxies
relating
to
portfolio
securities.
Shareholders
may
view
the
Trust’s
complete
Policies
online
at
franklintempleton.com.
Alternatively,
shareholders
may
request
copies
of
the
Policies
free
of
charge
by
calling
the
Proxy
Group
collect
at
(954)
527-
7678
or
by
sending
a
written
request
to:
Franklin
Templeton
Companies,
LLC,
300
S.E.
2nd
Street,
Fort
Lauderdale,
FL
33301,
Attention:
Proxy
Group.
Copies
of
the
Trust’s
proxy
voting
records
are
also
made
available
online
at
franklintempleton.com
and
posted
on
the
U.S.
Securities
and
Exchange
Commission’s
website
at
sec.gov
and
reflect
the
most
recent
12-month
period
ended
June
30.
Quarterly
Statement
of
Investments
The
Trust
files
a
complete
statement
of
investments
with
the
U.S.
Securities
and
Exchange
Commission
for
the
first
and
third
quarters
for
each
fiscal
year
as
an
exhibit
to
its
report
on
Form
N-PORT.
Shareholders
may
view
the
filed
Form
N-PORT
by
visiting
the
Commission’s
website
at
sec.
gov.
The
filed
form
may
also
be
viewed
and
copied
at
the
Commission’s
Public
Reference
Room
in
Washington,
DC.
Information
regarding
the
operations
of
the
Public
Reference
Room
may
be
obtained
by
calling
(800)
SEC-0330.
Householding
of
Reports
and
Prospectuses
You
will
receive,
or
receive
notice
of
the
availability
of,
the
Fund’s
financial
reports
every
six
months.
In
addition,
you
will
receive
an
annual
updated
summary
prospectus
(prospectus
available
upon
request).
To
reduce
Fund
Franklin
Tax-Free
Trust
Shareholder
Information
208
franklintempleton.com
Annual
Report
expenses,
we
try
to
identify
related
shareholders
in
a
household
and
send
only
one
copy
of
the
financial
reports
(to
the
extent
received
by
mail)
and
summary
prospectus.
This
process,
called
“householding,”
will
continue
indefinitely
unless
you
instruct
us
otherwise.
If
you
prefer
not
to
have
these
documents
householded,
please
call
us
at
(800)
632-2301.
At
any
time
you
may
view
current
prospectuses/
summary
prospectuses
and
financial
reports
on
our
website.
If
you
choose,
you
may
receive
these
documents
through
electronic
delivery.
TF1
A
04/22
©
2022
Franklin
Templeton
Investments.
All
rights
reserved.
Authorized
for
distribution
only
when
accompanied
or
preceded
by
a
summary
prospectus
and/or
prospectus.
Investors
should
carefully
consider
a
fund’s
investment
goals,
risks,
charges
and
expenses
before
investing.
A
prospectus
contains
this
and
other
information;
please
read
it
carefully
before
investing.
To
help
ensure
we
provide
you
with
quality
service,
all
calls
to
and
from
our
service
areas
are
monitored
and/or
recorded.
Annual
Report
and
Shareholder
Letter
Franklin
Tax-Free
Trust
Investment
Manager
Distributor
Shareholder
Services
Franklin
Advisers,
Inc.
Franklin
Distributors,
LLC
(800)
DIAL
BEN
®
/
342-5236
franklintempleton.com
(800)
632-2301
ANNUAL
REPORT
AND
SHAREHOLDER
LETTER
Franklin
Tax-Free
Trust
February
28,
2022
Sign
up
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Franklin
Alabama
Tax-Free
Income
Fund
Franklin
Georgia
Tax-Free
Income
Fund
Franklin
Louisiana
Tax-Free
Income
Fund
Franklin
Maryland
Tax-Free
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Fund
Franklin
Missouri
Tax-Free
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Fund
Franklin
North
Carolina
Tax-Free
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Franklin
Virginia
Tax-Free
Income
Fund
Not
FDIC
Insured
May
Lose
Value
No
Bank
Guarantee
franklintempleton.com
Annual
Report
1
SHAREHOLDER
LETTER
Dear
Shareholder:
During
the
12
months
ended
February
28,
2022,
the
U.S.
economy
continued
to
recover
from
the
COVID-19
pandemic
amid
declining
unemployment,
growing
wages
and
business
confidence.
Growth
persisted
in
2021’s
second
half
as
the
reopening
of
businesses,
widespread
COVID-19
vaccinations
and
federal
assistance
programs
continued
to
boost
consumer
spending.
Inflation
increased
during
the
reporting
period
due
to
increased
demand
for
goods
amid
supply-chain
bottlenecks.
Investors
became
concerned
that
new,
swiftly
spreading
COVID-19
variants
could
hinder
the
economic
recovery,
and
although
growth
slowed
in
2021’s
third
quarter,
it
accelerated
in
the
fourth
quarter.
During
the
reporting
period,
the
U.S.
Federal
Reserve,
in
its
efforts
to
encourage
continued
U.S.
economic
activity,
held
the
federal
funds
rate
unchanged
at
0.25%,
and
it
continued
quantitative
easing
measures
to
bolster
credit
markets.
However,
the
Federal
Reserve
began
decreasing
its
asset
purchases
in
November,
accelerated
its
tapering
in
December,
and
indicated
in
January
that
conditions
would
soon
be
appropriate
to
raise
the
federal
funds
rate
given
employment
gains
and
persistent
high
inflation,
which
should
result
in
higher
short-term
rates.
During
the
12-month
period,
municipal
bonds,
as
measured
by
the
Bloomberg
Municipal
Bond
Index,
posted
a
-0.66%
cumulative
total
return.
1
After
benefiting
from
strong
demand
earlier
in
the
period,
by
the
end
of
2021
and
into
2022,
municipal
bond
valuations
declined
amid
increased
U.S.
Treasury
bond
volatility
influenced
by
anticipation
of
tighter
monetary
policy.
However,
municipal
bond
issuers
benefited
from
direct
fiscal
support
from
the
U.S.
government
and
from
the
reopening
of
businesses,
leading
to
increased
consumer
spending
despite
the
ongoing
uncertainty
surrounding
COVID-19.
Franklin
Tax-Free
Trust’s
annual
report
includes
more
detail
about
municipal
bond
market
conditions
and
a
discussion
from
the
portfolio
managers.
In
addition,
on
our
website,
franklintempleton.com
,
you
can
find
updated
commentary
by
our
municipal
bond
team.
Municipal
bonds
provide
tax-free
income
and
diversification
from
equities.
Despite
periods
of
volatility,
municipal
bonds
historically
have
had
a
solid
long-term
record
of
performance,
driven
mostly
by
their
compounding
tax-free
income
component.
As
you
know,
all
securities
markets
fluctuate
in
value,
as
do
mutual
fund
share
prices.
As
always,
we
recommend
investors
consult
their
financial
professionals
to
help
them
make
the
best
decisions
for
the
long
term.
In
a
constantly
changing
market
environment,
we
remain
committed
to
our
disciplined
strategy
as
we
manage
the
Funds,
keeping
in
mind
the
trust
you
have
placed
in
us.
We
appreciate
your
confidence
in
us
and
encourage
you
to
contact
us
or
your
financial
professional
when
you
have
questions
about
your
Franklin
tax-free
investment.
Sincerely,
Rupert
H.
Johnson,
Jr.
Chairman
Franklin
Tax-Free
Trust
Ben
Barber
Senior
Vice
President
Director
of
Municipal
Bonds
This
letter
reflects
our
analysis
and
opinions
as
of
February
28,
2022,
unless
otherwise
indicated.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
fund.
Statements
of
fact
are
from
sources
considered
reliable.
1.
Source:
Morningstar.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
franklintempleton.com
Annual
Report
2
Contents
Annual
Report
Municipal
Bond
Market
Overview
3
Investment
Strategy
and
Manager’s
Discussion
4
Franklin
Alabama
Tax-Free
Income
Fund
5
Franklin
Georgia
Tax-Free
Income
Fund
11
Franklin
Louisiana
Tax-Free
Income
Fund
17
Franklin
Maryland
Tax-Free
Income
Fund
23
Franklin
Missouri
Tax-Free
Income
Fund
29
Franklin
North
Carolina
Tax-Free
Income
Fund
35
Franklin
Virginia
Tax-Free
Income
Fund
41
Financial
Highlights
and
Statements
of
Investments
47
Financial
Statements
118
Notes
to
Financial
Statements
131
Report
of
Independent
Registered
Public
Accounting
Firm
150
Tax
Information
151
Board
Members
and
Officers
152
Shareholder
Information
157
Visit
franklintempleton.com
for
fund
updates,
to
access
your
account,
or
to
find
helpful
financial
planning
tools.
3
franklintempleton.com
Annual
Report
ANNUAL
REPORT
Municipal
Bond
Market
Overview
During
the
12
months
ending
February
28,
2022,
COVID-19
and
its
variants
continued
to
be
the
main
driver
of
market
forces.
First,
the
Delta
variant
during
the
summer
and
then,
the
Omicron
variant
toward
the
end
of
2021,
caused
COVID-19
daily
new
case
rates
to
reach
new
highs.
Although
adjusting
some
social
distancing
requirements,
health
authorities
broadly
resisted
returning
to
the
general
lockdowns
seen
at
the
beginning
of
the
pandemic,
thereby
tempering
the
overall
economic
blow
to
local
economies.
The
U.S.
Federal
Reserve
announced
its
intention
to
tighten
monetary
policy
beginning
in
2022,
which
caused
U.S.
Treasury
(UST)
yields
to
move
higher.
Strong
demand
pushed
ratios
of
30-year
municipal
bonds
(munis)
versus
UST
yields
in
June
2021
to
all-time
lows.
At
the
end
of
2021
and
into
2022,
munis
performed
poorly
after
fund
flows
turned
negative
as
investors
retreated
from
the
muni
market
amid
increased
UST
volatility.
Muni
issuer
fundamentals
remained
strong
as
they
have
benefited
from
fiscal
support
and
the
reopening
of
businesses,
leading
to
increased
consumer
spending
despite
the
ongoing
uncertainty
surrounding
COVID-19.
For
the
12-month
period,
U.S.
fixed
income
sectors
underperformed
relative
to
equities,
as
measured
by
the
Standard
&
Poor’s
®
500
Index,
which
posted
a
+16.39%
total
return
for
the
period.
1
Investment-grade
munis,
as
measured
by
the
Bloomberg
Municipal
Bond
Index,
posted
a
-0.66%
total
return.
1
In
comparison,
USTs,
as
measured
by
the
Bloomberg
U.S.
Treasury
Index,
posted
a
-2.11%
total
return,
and
investment-grade
corporate
bonds,
as
measured
by
the
Bloomberg
U.S.
Corporate
Bond
Index,
posted
a
-3.40%
total
return.
1
The
foregoing
information
reflects
our
analysis
and
opinions
as
of
February
28,
2022.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
fund.
Statements
of
fact
are
from
sources
considered
reliable.
1.
Source:
Morningstar.
Treasuries,
if
held
to
maturity,
offer
a
fixed
rate
of
return
and
a
fixed
principal
value;
their
interest
payments
and
principal
are
guaranteed.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
4
franklintempleton.com
Annual
Report
Investment
Strategy
and
Manager’s
Discussion
Investment
Strategy
We
select
securities
that
we
believe
will
provide
the
best
balance
between
risk
and
return
within
each
Fund’s
range
of
allowable
investments
and
typically
use
a
buy-and-hold
strategy.
This
means
we
generally
hold
securities
in
each
Fund’s
portfolio
for
income
purposes,
rather
than
trading
securities
for
capital
gains,
although
we
may
sell
a
security
at
any
time
if
we
believe
it
could
help
a
Fund
meet
its
goal.
Manager’s
Discussion
Due
to
the
positive
sloping
municipal
yield
curve,
we
found
value
in
higher
quality
securities
in
the
15-
to
30-year
maturity
range,
which
allowed
us
to
achieve
our
objective
of
maximizing
income
for
our
investors.
Typically,
when
interest
rates
fall,
our
turnover
declines
as
we
maintain
exposure
to
securities
that
are
producing
income
that
exceeds
their
replacement
value
in
the
market.
This
excess
income
supports
higher
distribution
rates
and
reinvestment
rates
for
those
investors
taking
advantage
of
tax-free
compounding.
Our
turnover
increases
when
rates
rise,
as
opportunities
to
purchase
securities
that
have
the
potential
to
increase
income
in
the
portfolios
become
available.
We
believe
our
consistent,
disciplined
strategy
can
help
our
investors
achieve
high,
tax-free
income
over
the
long
term.
We
invite
you
to
read
your
Fund
report
for
more
detailed
performance
and
portfolio
information.
Thank
you
for
your
participation
in
Franklin
Tax-Free
Trust.
We
look
forward
to
serving
your
future
investment
needs.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
February
28,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
5
franklintempleton.com
Annual
Report
Franklin
Alabama
Tax-Free
Income
Fund
This
annual
report
for
Franklin
Alabama
Tax-Free
Income
Fund
covers
the
fiscal
year
ended
February
28,
2022
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
investors
with
as
high
a
level
of
income
exempt
from
federal
and
Alabama
personal
income
taxes
as
is
consistent
with
prudent
investment
management
and
the
preservation
of
shareholders’
capital
by
normally
investing
at
least
80%
of
its
total
assets
in
securities
that
pay
interest
free
from
such
taxes.
1
Performance
Overview
The
Fund’s
Class
A
share
price,
as
measured
by
net
asset
value,
decreased
from
$11.18
on
February
28,
2021,
to
$10.97
on
February
28,
2022.
The
Fund’s
Class
A
shares
paid
dividends
totaling
21.9013
cents
per
share
for
the
same
period.
2
The
Performance
Summary
beginning
on
page
7
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
1.76%,
based
on
an
annualization
of
February’s
1.6766
cents
per
share
monthly
dividend
and
the
maximum
offering
price
of
$11.40
on
February
28,
2022.
An
investor
in
the
2022
maximum
combined
effective
federal
and
Alabama
personal
income
tax
bracket
of
45.80%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
3.25%
from
a
taxable
investment
to
match
the
Fund’s
Class
A
tax-free
distribution
rate.
For
other
performance
data,
please
see
the
Performance
Summary.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
State
Update
During
the
12-month
period,
Alabama’s
economy
grew
at
a
brisk
pace
amid
a
rebound
in
consumer
spending
and
continued
resumption
of
in-person
activities.
The
state’s
strong
and
diversified
manufacturing
base,
including
companies
in
the
automotive,
shipbuilding,
steelmaking
and
aerospace
industries,
significantly
fueled
its
growth.
Alabama’s
unemployment
rate
began
the
period
at
3.8%
and
ended
at
3.0%,
compared
with
the
3.8%
national
rate.
Fiscal
year
(FY)
2021
tax
revenues
grew
significantly
compared
to
2020,
due
in
part
to
federal
stimulus
funds.
The
state
enacted
a
general
fund
budget
for
FY
2022
that
included
significant
increases
in
spending
on
corrections,
mental
health
services
and
law
enforcement.
Alabama’s
net
tax-supported
debt
was
$1,045
per
capita
and
2.2%
of
personal
income,
marginally
higher
than
the
$1,039
and
1.9%
national
medians,
respectively.
3
Independent
credit
rating
agency
Moody’s
Investors
Service
maintained
Alabama’s
general
obligation
bonds’
Aa1
rating
with
a
stable
outlook.
4
The
rating
reflected
Moody’s
view
that
the
state
benefits
from
its
conservative
fiscal
practices,
its
provision
for
midyear
spending
cuts
and
its
high
coverage
of
debt
service
from
available
tax
revenue.
According
to
Moody’s,
Alabama’s
challenges
include
a
high
poverty
rate,
low
labor
force
participation
and
legislative
power
to
reduce
revenue
previously
pledged
for
debt
service.
*
Does
not
include
cash
and
cash
equivalents.
Manager’s
Discussion
We
used
various
investment
strategies
during
the
12
months
under
review
as
we
sought
to
maximize
tax-free
income
for
shareholders.
Please
read
the
Investment
Strategy
and
Manager’s
Discussion
on
page
4
for
more
information.
Portfolio
Composition
2/28/22
%
of
Total
Investments*
Refunded
22.13%
Education
19.57%
Utilities
18.13%
Health
Care
17.08%
Local
8.81%
Industrial
Dev.
Revenue
and
Pollution
Control
4.74%
Transportation
4.57%
Housing
2.84%
Lease
1.35%
Special
Tax
0.78%
1.
For
investors
subject
to
alternative
minimum
tax,
a
small
portion
of
the
Fund
dividends
may
be
taxable.
Distributions
of
capital
gains
are
generally
taxable.
To
avoid
impo-
sition
of
28%
backup
withholding
on
all
Fund
distributions
and
redemption
proceeds,
U.S.
investors
must
be
properly
certified
on
Form
W-9
and
non-U.S.
investors
on
Form
W-8BEN.
2.
The
distribution
amount
is
the
sum
of
all
net
investment
income
distributions
for
the
period
shown.
Assumes
shares
were
purchased
and
held
for
the
entire
accrual
period.
Since
dividends
accrue
daily,
your
actual
distributions
will
vary
depending
on
the
date
you
purchased
your
shares
and
any
account
activity.
All
Fund
distributions
will
vary
depending
upon
current
market
conditions,
and
past
distributions
are
not
indicative
of
future
trends.
3.
Source:
Moody’s
Investors
Service,
State
government
–
US:
Medians
–
State
debt
rose
2.5%
in
2020,
spurred
by
pandemic-linked
borrowing
,
6/14/21.
4.
This
does
not
indicate
Moody’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
52
.
Franklin
Alabama
Tax-Free
Income
Fund
6
franklintempleton.com
Annual
Report
Thank
you
for
your
continued
participation
in
Franklin
Alabama
Tax-Free
Income
Fund.
We
look
forward
to
serving
your
future
investment
needs.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
February
28,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Performance
Summary
as
of
February
28,
2022
Franklin
Alabama
Tax-Free
Income
Fund
7
franklintempleton.com
Annual
Report
The
performance
tables
and
graphs
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
2/28/22
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
1-Year
+0.02%
-3.73%
5-Year
+12.46%
+1.60%
10-Year
+28.95%
+2.18%
Advisor
5
1-Year
+0.18%
+0.18%
5-Year
+13.42%
+2.55%
10-Year
+30.05%
+2.66%
Share
Class
Distribution
Rate
6
Taxable
Equivalent
Distribution
Rate
7
30-Day
Standardized
Yield
8
Taxable
Equivalent
30-Day
Standardized
Yield
7
A
1.76%
3.25%
1.15%
2.12%
Advisor
2.07%
3.82%
1.45%
2.68%
See
page
9
for
Performance
Summary
footnotes.
Franklin
Alabama
Tax-Free
Income
Fund
Performance
Summary
8
franklintempleton.com
Annual
Report
See
page
9
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
Total
return
represents
the
change
in
value
of
an
investment
over
the
periods
shown.
It
includes
any
applicable
maximum
sales
charge,
Fund
expenses,
account
fees
and
reinvested
distributions.
The
unmanaged
index
includes
reinvestment
of
any
income
or
distributions.
It
differs
from
the
Fund
in
composition
and
does
not
pay
management
fees
or
expenses.
One
cannot
invest
directly
in
an
index.
Class
A
(3/1/12–2/28/22)
Advisor
Class
(3/1/12–2/28/22)
Franklin
Alabama
Tax-Free
Income
Fund
Performance
Summary
9
franklintempleton.com
Annual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
Because
municipal
bonds
are
sensitive
to
interest
rate
movements,
the
Fund’s
yield
and
share
price
will
fluctuate
with
market
conditions.
Bond
prices
generally
move
in
the
opposite
direction
of
interest
rates.
Thus,
as
prices
of
bonds
in
the
Fund
adjust
to
a
rise
in
interest
rates,
the
Fund’s
share
price
may
decline.
Because
the
Fund
invests
principally
in
a
single
state,
it
is
subject
to
greater
risk
of
adverse
economic
and
regulatory
changes
in
that
state
than
a
geographically
diversified
fund.
Changes
in
the
credit
rating
of
a
bond,
or
in
the
credit
rating
or
financial
strength
of
a
bond’s
issuer,
insurer
or
guarantor,
may
affect
the
bond’s
value.
The
Fund
may
invest
a
significant
part
of
its
assets
in
municipal
securities
that
finance
similar
types
of
projects,
such
as
utilities,
hospitals,
higher
education
and
transportation.
A
change
that
affects
one
project
would
likely
affect
all
similar
projects,
thereby
increasing
market
risk.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
im-
posed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Effective
9/15/16,
the
Fund
began
offering
Advisor
Class
shares,
which
do
not
have
sales
charges
or
a
Rule
12b-1
plan.
Performance
quotations
for
this
class
reflect
the
following
methods
of
calculation:
(a)
For
periods
prior
to
9/15/16,
a
restated
figure
is
used
based
upon
the
Fund’s
Class
A
performance,
excluding
the
effect
of
Class
A’s
maximum
initial
sales
charge,
but
reflecting
the
effect
of
the
Class
A
Rule
12b-1
fees;
and
(b)
for
periods
after
9/15/16,
actual
Advisor
Class
performance
is
used
reflecting
all
charges
and
fees
applicable
to
that
class.
6.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
February
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
2/28/22.
7.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
12/20/21
for
the
maximum
combined
effective
federal
and
Alabama
personal
income
tax
rate
of
45.80%,
based
on
the
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
8.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
9.
Source:
Morningstar.
The
Bloomberg
Municipal
Bond
Index
is
a
market
value-weighted
index
of
tax-exempt,
investment-grade
municipal
bonds
with
maturities
of
one
year
or
more.
10.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(3/1/21–2/28/22)
Share
Class
Net
Investment
Income
A
$0.219013
A1
$0.236189
C
$0.172422
R6
$0.251336
Advisor
$0.247564
Total
Annual
Operating
Expenses
10
Share
Class
A
0.91%
Advisor
0.66%
Your
Fund’s
Expenses
Franklin
Alabama
Tax-Free
Income
Fund
10
franklintempleton.com
Annual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
181/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements,
for
Class
R6.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
9/1/21
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$967.00
$4.43
$1,020.30
$4.55
0.91%
A1
$1,000
$966.90
$3.70
$1,021.03
$3.80
0.76%
C
$1,000
$964.60
$6.33
$1,018.35
$6.51
1.30%
R6
$1,000
$967.50
$3.06
$1,021.69
$3.14
0.63%
Advisor
$1,000
$967.30
$3.21
$1,021.53
$3.30
0.66%
11
franklintempleton.com
Annual
Report
Franklin
Georgia
Tax-Free
Income
Fund
This
annual
report
for
Franklin
Georgia
Tax-Free
Income
Fund
covers
the
fiscal
year
ended
February
28,
2022
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
investors
with
as
high
a
level
of
income
exempt
from
federal
and
Georgia
personal
income
taxes
as
is
consistent
with
prudent
investment
management
and
the
preservation
of
shareholders’
capital
by
normally
investing
at
least
80%
of
its
total
assets
in
securities
that
pay
interest
free
from
such
taxes.
1
Performance
Overview
The
Fund’s
Class
A
share
price,
as
measured
by
net
asset
value,
decreased
from
$11.91
on
February
28,
2021,
to
$11.57
on
February
28,
2022.
The
Fund’s
Class
A
shares
paid
dividends
totaling
26.3719
cents
per
share
for
the
same
period.
2
The
Performance
Summary
beginning
on
page
13
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
1.93%,
based
on
an
annualization
of
February’s
1.9354
cents
per
share
monthly
dividend
and
the
maximum
offering
price
of
$12.02
on
February
28,
2022.
An
investor
in
the
2022
maximum
combined
effective
federal
and
Georgia
personal
income
tax
bracket
of
46.55%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
3.61%
from
a
taxable
investment
to
match
the
Fund’s
Class
A
tax-free
distribution
rate.
For
other
performance
data,
please
see
the
Performance
Summary.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
State
Update
During
the
12-month
period,
Georgia’s
well-diversified
economy
grew
at
a
brisk
pace
amid
a
rebound
in
consumer
spending
and
continued
resumption
of
in-person
activities.
The
state’s
recovery
is
rooted
in
the
past
decade’s
economic
and
population
growth,
notably
in
the
Atlanta
metropolitan
area,
as
well
as
Georgia’s
relatively
low
debt
burden.
Georgia’s
unemployment
rate
began
the
period
at
4.6%
and
ended
at
3.2%,
compared
with
the
3.8%
national
rate.
The
governor
signed
a
fiscal
year
(FY)
2022
budget
that
restored
spending
where
cuts
had
been
made
in
the
FY
2021
budget
amid
the
COVID-19
pandemic.
The
governor’s
proposed
FY
2023
budget
included
a
significant
increase
in
education
spending.
The
state’s
net
tax-supported
debt
was
$987
per
capita
and
1.9%
of
personal
income,
compared
to
the
$1,039
and
1.9%
national
medians,
respectively.
3
Independent
credit
rating
agency
Moody’s
Investors
Service
maintained
Georgia’s
general
obligation
bonds’
Aaa
rating
with
a
stable
outlook,
reflecting
Moody’s
view
of
Georgia’s
traditionally
solid
economy,
effective
governance,
fiscal
management
and
consistently
high
reserves.
4
According
to
Moody’s,
challenges
included
per-capita
income
that
regularly
trails
the
nation,
particularly
in
rural
areas.
The
stable
outlook
recognizes
Moody’s
view
that
strong
governance,
fiscal
management
and
reserves
will
enable
Georgia
to
continue
its
recovery
from
the
pandemic’s
economic
impact.
*Does
not
include
cash
and
cash
equivalents.
Portfolio
Composition
2/28/22
%
of
Total
Investments*
Utilities
19.31%
Health
Care
19.21%
Housing
13.53%
Local
10.26%
Refunded
8.42%
Education
8.12%
Transportation
6.83%
Special
Tax
5.72%
Industrial
Dev.
Revenue
and
Pollution
Control
3.84%
State
General
Obligation
3.72%
Lease
1.04%
1.
For
investors
subject
to
alternative
minimum
tax,
a
small
portion
of
the
Fund
dividends
may
be
taxable.
Distributions
of
capital
gains
are
generally
taxable.
To
avoid
impo-
sition
of
28%
backup
withholding
on
all
Fund
distributions
and
redemption
proceeds,
U.S.
investors
must
be
properly
certified
on
Form
W-9
and
non-U.S.
investors
on
Form
W-8BEN.
2.
The
distribution
amount
is
the
sum
of
all
net
investment
income
distributions
for
the
period
shown.
Assumes
shares
were
purchased
and
held
for
the
entire
accrual
period.
Since
dividends
accrue
daily,
your
actual
distributions
will
vary
depending
on
the
date
you
purchased
your
shares
and
any
account
activity.
All
Fund
distributions
will
vary
depending
upon
current
market
conditions,
and
past
distributions
are
not
indicative
of
future
trends.
3.
Source:
Moody’s
Investors
Service,
State
government
–
US:
Medians
–
State
debt
rose
2.5%
in
2020,
spurred
by
pandemic-linked
borrowing
,
6/14/21.
4.
This
does
not
indicate
Moody’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
61
.
Franklin
Georgia
Tax-Free
Income
Fund
12
franklintempleton.com
Annual
Report
Manager’s
Discussion
We
used
various
investment
strategies
during
the
12
months
under
review
as
we
sought
to
maximize
tax-free
income
for
shareholders.
Please
read
the
Investment
Strategy
and
Manager’s
Discussion
on
page
4
for
more
information.
Thank
you
for
your
continued
participation
in
Franklin
Georgia
Tax-Free
Income
Fund.
We
look
forward
to
serving
your
future
investment
needs.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
February
28,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Performance
Summary
as
of
February
28,
2022
Franklin
Georgia
Tax-Free
Income
Fund
13
franklintempleton.com
Annual
Report
The
performance
tables
and
graphs
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
2/28/22
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
1-Year
-0.71%
-4.43%
5-Year
+11.13%
+1.36%
10-Year
+27.88%
+2.10%
Advisor
5
1-Year
-0.46%
-0.46%
5-Year
+12.27%
+2.34%
10-Year
+29.15%
+2.59%
Share
Class
Distribution
Rate
6
Taxable
Equivalent
Distribution
Rate
7
30-Day
Standardized
Yield
8
Taxable
Equivalent
30-Day
Standardized
Yield
7
A
1.93%
3.61%
1.30%
2.43%
Advisor
2.24%
4.17%
1.60%
2.98%
See
page
15
for
Performance
Summary
footnotes.
Franklin
Georgia
Tax-Free
Income
Fund
Performance
Summary
14
franklintempleton.com
Annual
Report
See
page
15
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
Total
return
represents
the
change
in
value
of
an
investment
over
the
periods
shown.
It
includes
any
applicable
maximum
sales
charge,
Fund
expenses,
account
fees
and
reinvested
distributions.
The
unmanaged
index
includes
reinvestment
of
any
income
or
distributions.
It
differs
from
the
Fund
in
composition
and
does
not
pay
management
fees
or
expenses.
One
cannot
invest
directly
in
an
index.
Class
A
(3/1/12–2/28/22)
Advisor
Class
(3/1/12–2/28/22)
Franklin
Georgia
Tax-Free
Income
Fund
Performance
Summary
15
franklintempleton.com
Annual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
Because
municipal
bonds
are
sensitive
to
interest
rate
movements,
the
Fund’s
yield
and
share
price
will
fluctuate
with
market
conditions.
Bond
prices
generally
move
in
the
opposite
direction
of
interest
rates.
Thus,
as
prices
of
bonds
in
the
Fund
adjust
to
a
rise
in
interest
rates,
the
Fund’s
share
price
may
decline.
Because
the
Fund
invests
principally
in
a
single
state,
it
is
subject
to
greater
risk
of
adverse
economic
and
regulatory
changes
in
that
state
than
a
geographically
diversified
fund.
Changes
in
the
credit
rating
of
a
bond,
or
in
the
credit
rating
or
financial
strength
of
a
bond’s
issuer,
insurer
or
guarantor,
may
affect
the
bond’s
value.
The
Fund
may
invest
a
significant
part
of
its
assets
in
municipal
securities
that
finance
similar
types
of
projects,
such
as
utilities,
hospitals,
higher
education
and
transportation.
A
change
that
affects
one
project
would
likely
affect
all
similar
projects,
thereby
increasing
market
risk.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
im-
posed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Effective
9/15/16,
the
Fund
began
offering
Advisor
Class
shares,
which
do
not
have
sales
charges
or
a
Rule
12b-1
plan.
Performance
quotations
for
this
class
reflect
the
following
methods
of
calculation:
(a)
For
periods
prior
to
9/15/16,
a
restated
figure
is
used
based
upon
the
Fund’s
Class
A
performance,
excluding
the
effect
of
Class
A’s
maximum
initial
sales
charge,
but
reflecting
the
effect
of
the
Class
A
Rule
12b-1
fees;
and
(b)
for
periods
after
9/15/16,
actual
Advisor
Class
performance
is
used
reflecting
all
charges
and
fees
applicable
to
that
class.
6.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
February
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
2/28/22.
7.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
12/20/21
for
the
maximum
combined
effective
federal
and
Georgia
personal
income
tax
rate
of
46.55%,
based
on
the
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
8.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
9.
Source:
Morningstar.
The
Bloomberg
Municipal
Bond
Index
is
a
market
value-weighted
index
of
tax-exempt,
investment-grade
municipal
bonds
with
maturities
of
one
year
or
more.
10.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(3/1/21–2/28/22)
Share
Class
Net
Investment
Income
A
$0.263719
A1
$0.281831
C
$0.214143
R6
$0.298819
Advisor
$0.293877
Total
Annual
Operating
Expenses
10
Share
Class
A
0.86%
Advisor
0.61%
Your
Fund’s
Expenses
Franklin
Georgia
Tax-Free
Income
Fund
16
franklintempleton.com
Annual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
181/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements,
for
Class
R6
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
9/1/21
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$967.90
$4.21
$1,020.52
$4.32
0.86%
A1
$1,000
$968.70
$3.48
$1,021.26
$3.57
0.71%
C
$1,000
$965.70
$6.11
$1,018.58
$6.27
1.25%
R6
$1,000
$969.30
$2.79
$1,021.96
$2.86
0.57%
Advisor
$1,000
$968.30
$2.99
$1,021.76
$3.07
0.61%
17
franklintempleton.com
Annual
Report
Franklin
Louisiana
Tax-Free
Income
Fund
This
annual
report
for
Franklin
Louisiana
Tax-Free
Income
Fund
covers
the
fiscal
year
ended
February
28,
2022
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
investors
with
as
high
a
level
of
income
exempt
from
federal
and
Louisiana
personal
income
taxes
as
is
consistent
with
prudent
investment
management
and
the
preservation
of
shareholders’
capital
by
normally
investing
at
least
80%
of
its
total
assets
in
securities
that
pay
interest
free
from
such
taxes.
1
Performance
Overview
The
Fund’s
Class
A
share
price,
as
measured
by
net
asset
value,
decreased
from
$11.28
on
February
28,
2021,
to
$11.03
on
February
28,
2022.
The
Fund’s
Class
A
shares
paid
dividends
totaling
23.7134
cents
per
share
for
the
same
period.
2
The
Performance
Summary
beginning
on
page
19
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
1.87%,
based
on
an
annualization
of
February’s
1.7902
cents
per
share
monthly
dividend
and
the
maximum
offering
price
of
$11.46
on
February
28,
2022.
An
investor
in
the
2022
maximum
combined
effective
federal
and
Louisiana
personal
income
tax
bracket
of
45.05%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
3.40%
from
a
taxable
investment
to
match
the
Fund’s
Class
A
tax-free
distribution
rate.
For
other
performance
data,
please
see
the
Performance
Summary.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
State
Update
During
the
12-month
period,
Louisiana’s
economy
continued
to
recover
amid
a
rebound
in
consumer
spending
and
continued
resumption
of
in-person
activities.
However,
Hurricane
Ida
caused
significant
damage
to
the
state’s
energy
industry,
and
consequently
Louisiana’s
economy
lagged
behind
the
nation
as
a
whole.
Louisiana’s
unemployment
rate
began
the
period
at
6.3%
and
ended
at
4.3%,
compared
with
the
3.8%
national
rate.
The
state
has
generated
budgetary
surpluses
in
five
consecutive
years,
strengthening
its
balance
sheet.
The
state
legislature
passed
a
fiscal
year
2021-2022
budget
that
increased
infrastructure
and
education
spending,
financed
in
part
by
federal
stimulus
funds.
The
state’s
net
tax-supported
debt
was
$1,591
per
capita
and
3.2%
of
personal
income,
above
the
$1,039
and
1.9%
national
medians,
respectively.
3
Independent
credit
rating
agency
Moody’s
Investors
Service
maintained
Louisiana’s
general
obligation
bonds’
Aa3
rating
and
positive
outlook.
4
The
rating
reflected
Moody’s
view
of
Louisiana’s
moderate
debt
and
pension
liabilities
and
its
adherence
to
positive
financial
practices,
including
midyear
budget
adjustments.
According
to
Moody’s,
challenges
included
Louisiana’s
revenue
volatility
due
to
dependency
on
oil
and
gas
extraction,
slow
population
growth,
low
relative
income
levels
and
constraints
on
raising
revenue
and
reducing
expenditures.
Moody’s
positive
outlook
reflected
Louisiana’s
progress
in
restoring
its
financial
reserves
and
liquidity.
*
Does
not
include
cash
and
cash
equivalents.
Portfolio
Composition
2/28/22
%
of
Total
Investments*
Health
Care
15.60%
Transportation
13.87%
Refunded
12.28%
Education
11.49%
Special
Tax
10.82%
Housing
9.75%
Utilities
8.17%
State
General
Obligation
6.50%
Lease
5.56%
Local
4.97%
Other
Revenue
Bonds
0.99%
1.
For
investors
subject
to
alternative
minimum
tax,
a
small
portion
of
the
Fund
dividends
may
be
taxable.
Distributions
of
capital
gains
are
generally
taxable.
To
avoid
impo-
sition
of
28%
backup
withholding
on
all
Fund
distributions
and
redemption
proceeds,
U.S.
investors
must
be
properly
certified
on
Form
W-9
and
non-U.S.
investors
on
Form
W-8BEN.
2.
The
distribution
amount
is
the
sum
of
all
net
investment
income
distributions
for
the
period
shown.
Assumes
shares
were
purchased
and
held
for
the
entire
accrual
period.
Since
dividends
accrue
daily,
your
actual
distributions
will
vary
depending
on
the
date
you
purchased
your
shares
and
any
account
activity.
All
Fund
distributions
will
vary
depending
upon
current
market
conditions,
and
past
distributions
are
not
indicative
of
future
trends.
3.
Source:
Moody’s
Investors
Service,
State
government
–
US:
Medians
–
State
debt
rose
2.5%
in
2020,
spurred
by
pandemic-linked
borrowing
,
6/14/21
.
4.
This
does
not
indicate
Moody’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
71
.
Franklin
Louisiana
Tax-Free
Income
Fund
18
franklintempleton.com
Annual
Report
Manager’s
Discussion
We
used
various
investment
strategies
during
the
12
months
under
review
as
we
sought
to
maximize
tax-free
income
for
shareholders.
Please
read
the
Investment
Strategy
and
Manager’s
Discussion
on
page
4
for
more
information.
Thank
you
for
your
continued
participation
in
Franklin
Louisiana
Tax-Free
Income
Fund.
We
look
forward
to
serving
your
future
investment
needs.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
February
28,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Performance
Summary
as
of
February
28,
2022
Franklin
Louisiana
Tax-Free
Income
Fund
19
franklintempleton.com
Annual
Report
The
performance
tables
and
graphs
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
2/28/22
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
1-Year
-0.17%
-3.92%
5-Year
+13.53%
+1.79%
10-Year
+28.42%
+2.14%
Advisor
5
1-Year
+0.08%
+0.08%
5-Year
+14.70%
+2.78%
10-Year
+29.74%
+2.64%
Share
Class
Distribution
Rate
6
Taxable
Equivalent
Distribution
Rate
7
30-Day
Standardized
Yield
8
Taxable
Equivalent
30-Day
Standardized
Yield
7
A
1.87%
3.40%
1.46%
2.66%
Advisor
2.18%
3.97%
1.76%
3.20%
See
page
21
for
Performance
Summary
footnotes.
Franklin
Louisiana
Tax-Free
Income
Fund
Performance
Summary
20
franklintempleton.com
Annual
Report
See
page
21
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
Total
return
represents
the
change
in
value
of
an
investment
over
the
periods
shown.
It
includes
any
applicable
maximum
sales
charge,
Fund
expenses,
account
fees
and
reinvested
distributions.
The
unmanaged
index
includes
reinvestment
of
any
income
or
distributions.
It
differs
from
the
Fund
in
composition
and
does
not
pay
management
fees
or
expenses.
One
cannot
invest
directly
in
an
index.
Class
A
(3/1/12–2/28/22)
Advisor
Class
(3/1/12–2/28/22)
Franklin
Louisiana
Tax-Free
Income
Fund
Performance
Summary
21
franklintempleton.com
Annual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
Because
municipal
bonds
are
sensitive
to
interest
rate
movements,
the
Fund’s
yield
and
share
price
will
fluctuate
with
market
conditions.
Bond
prices
generally
move
in
the
opposite
direction
of
interest
rates.
Thus,
as
prices
of
bonds
in
the
Fund
adjust
to
a
rise
in
interest
rates,
the
Fund’s
share
price
may
decline.
Because
the
Fund
invests
principally
in
a
single
state,
it
is
subject
to
greater
risk
of
adverse
economic
and
regulatory
changes
in
that
state
than
a
geographically
diversified
fund.
Changes
in
the
credit
rating
of
a
bond,
or
in
the
credit
rating
or
financial
strength
of
a
bond’s
issuer,
insurer
or
guarantor,
may
affect
the
bond’s
value.
The
Fund
may
invest
a
significant
part
of
its
assets
in
municipal
securities
that
finance
similar
types
of
projects,
such
as
utilities,
hospitals,
higher
education
and
transportation.
A
change
that
affects
one
project
would
likely
affect
all
similar
projects,
thereby
increasing
market
risk.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
im-
posed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Effective
9/15/16,
the
Fund
began
offering
Advisor
Class
shares,
which
do
not
have
sales
charges
or
a
Rule
12b-1
plan.
Performance
quotations
for
this
class
reflect
the
following
methods
of
calculation:
(a)
For
periods
prior
to
9/15/16,
a
restated
figure
is
used
based
upon
the
Fund’s
Class
A
performance,
excluding
the
effect
of
Class
A’s
maximum
initial
sales
charge,
but
reflecting
the
effect
of
the
Class
A
Rule
12b-1
fees;
and
(b)
for
periods
after
9/15/16,
actual
Advisor
Class
performance
is
used
reflecting
all
charges
and
fees
applicable
to
that
class.
6.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
February
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
2/28/22.
7.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
12/20/21
for
the
maximum
combined
effective
federal
and
Louisiana
personal
income
tax
rate
of
45.05%,
based
on
the
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
8.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
9.
Source:
Morningstar.
The
Bloomberg
Municipal
Bond
Index
is
a
market
value-weighted
index
of
tax-exempt,
investment-grade
municipal
bonds
with
maturities
of
one
year
or
more.
10.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(3/1/21–2/28/22)
Share
Class
Net
Investment
Income
A
$0.237134
A1
$0.254383
C
$0.189979
R6
$0.270572
Advisor
$0.265810
Total
Annual
Operating
Expenses
10
Share
Class
A
0.87%
Advisor
0.62%
Your
Fund’s
Expenses
Franklin
Louisiana
Tax-Free
Income
Fund
22
franklintempleton.com
Annual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
181/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements,
for
Class
R6.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
9/1/21
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$970.60
$4.25
$1,020.48
$4.36
0.87%
A1
$1,000
$971.34
$3.52
$1,021.22
$3.61
0.72%
C
$1,000
$968.28
$6.16
$1,018.54
$6.31
1.26%
R6
$1,000
$972.02
$2.82
$1,021.93
$2.89
0.58%
Advisor
$1,000
$971.81
$3.03
$1,021.72
$3.11
0.62%
23
franklintempleton.com
Annual
Report
Franklin
Maryland
Tax-Free
Income
Fund
This
annual
report
for
Franklin
Maryland
Tax-Free
Income
Fund
covers
the
fiscal
year
ended
February
28,
2022
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
investors
with
as
high
a
level
of
income
exempt
from
federal
and
Maryland
personal
income
taxes
as
is
consistent
with
prudent
investment
management
and
the
preservation
of
shareholders’
capital
by
normally
investing
at
least
80%
of
its
total
assets
in
securities
that
pay
interest
free
from
such
taxes.
1
Performance
Overview
The
Fund’s
Class
A
share
price,
as
measured
by
net
asset
value,
decreased
from
$10.97
on
February
28,
2021,
to
$10.71
on
February
28,
2022.
The
Fund’s
Class
A
shares
paid
dividends
totaling
23.3373
cents
per
share
for
the
same
period.
2
The
Performance
Summary
beginning
on
page
25
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
1.95%,
based
on
an
annualization
of
February’s
1.8092
cents
per
share
monthly
dividend
and
the
maximum
offering
price
of
$11.13
on
February
28,
2022.
An
investor
in
the
2022
maximum
combined
effective
federal
and
Maryland
personal
income
tax
bracket
of
49.75%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
3.88%
from
a
taxable
investment
to
match
the
Fund’s
Class
A
tax-free
distribution
rate.
For
other
performance
data,
please
see
the
Performance
Summary.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
State
Update
During
the
12-month
period,
Maryland’s
economy
grew
at
a
brisk
pace
amid
a
rebound
in
consumer
spending
and
continued
resumption
of
in-person
activities.
Maryland’s
economy
benefits
from
a
significant
federal
presence
and
proximity
to
the
nation’s
capital,
which
provides
well-paid
civilian
and
national
defense
jobs.
The
state’s
unemployment
rate
began
the
period
at
5.7%
and
ended
at
5.0%,
compared
with
the
3.8%
national
rate.
The
general
assembly
approved
a
fiscal
year
(FY)
2022
budget
that
included
targeted
tax
relief
and
increased
spending
on
Medicaid
and
other
health
programs.
Higher-than-expected
tax
revenues
led
the
Maryland
Board
of
Revenue
to
increase
its
projections
for
both
FY
2022
and
FY
2023.
The
state’s
net
tax-supported
debt
was
$2,410
per
capita
and
3.5%
of
personal
income,
well
above
the
$1,039
and
1.9%
national
medians,
respectively.
3
Independent
credit
rating
agency
Moody’s
Investor
Service
maintained
the
state’s
general
obligation
bonds’
Aaa
rating
with
a
stable
outlook.
4
The
rating
reflected
Moody’s
view
that
Maryland
benefits
from
strong
budgetary
and
financial
management
and
a
history
of
proactive
responses
to
economic
cycles.
According
to
Moody’s,
challenges
included
a
relatively
high
debt
and
pension
burden
that
will
continue
to
test
Maryland’s
commitment
to
reducing
its
long-term
liabilities
while
maintaining
its
high
level
of
resident
services.
*
Does
not
include
cash
and
cash
equivalents.
Manager’s
Discussion
We
used
various
investment
strategies
during
the
12
months
under
review
as
we
sought
to
maximize
tax-free
income
for
shareholders.
Please
read
the
Investment
Strategy
and
Manager’s
Discussion
on
page
4
for
more
information.
Portfolio
Composition
2/28/22
%
of
Total
Investments*
Health
Care
20.46%
Education
16.23%
Housing
15.82%
Transportation
12.45%
Local
8.94%
Refunded
8.62%
Utilities
6.61%
Lease
6.60%
Special
Tax
3.63%
State
General
Obligation
0.64%
1.
For
investors
subject
to
alternative
minimum
tax,
a
small
portion
of
the
Fund
dividends
may
be
taxable.
Distributions
of
capital
gains
are
generally
taxable.
To
avoid
impo-
sition
of
28%
backup
withholding
on
all
Fund
distributions
and
redemption
proceeds,
U.S.
investors
must
be
properly
certified
on
Form
W-9
and
non-U.S.
investors
on
Form
W-8BEN.
2.
The
distribution
amount
is
the
sum
of
all
net
investment
income
distributions
for
the
period
shown.
Assumes
shares
were
purchased
and
held
for
the
entire
accrual
period.
Since
dividends
accrue
daily,
your
actual
distributions
will
vary
depending
on
the
date
you
purchased
your
shares
and
any
account
activity.
All
Fund
distributions
will
vary
depending
upon
current
market
conditions,
and
past
distributions
are
not
indicative
of
future
trends.
3.
Source:
Moody’s
Investors
Service,
State
government
–
US:
Medians
–
State
debt
rose
2.5%
in
2020,
spurred
by
pandemic-linked
borrowing
,
6/14/21.
4.
This
does
not
indicate
Moody’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
81
.
Franklin
Maryland
Tax-Free
Income
Fund
24
franklintempleton.com
Annual
Report
Thank
you
for
your
continued
participation
in
Franklin
Maryland
Tax-Free
Income
Fund.
We
look
forward
to
serving
your
future
investment
needs.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
February
28,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Performance
Summary
as
of
February
28,
2022
Franklin
Maryland
Tax-Free
Income
Fund
25
franklintempleton.com
Annual
Report
The
performance
tables
and
graphs
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
2/28/22
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
1-Year
-0.30%
-4.04%
5-Year
+10.77%
+1.29%
10-Year
+23.61%
+1.75%
Advisor
1-Year
+0.04%
+0.04%
5-Year
+12.01%
+2.29%
10-Year
+25.64%
+2.31%
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
A
1.95%
3.88%
1.35%
2.69%
Advisor
2.25%
4.48%
1.65%
3.28%
See
page
27
for
Performance
Summary
footnotes.
Franklin
Maryland
Tax-Free
Income
Fund
Performance
Summary
26
franklintempleton.com
Annual
Report
See
page
27
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
Total
return
represents
the
change
in
value
of
an
investment
over
the
periods
shown.
It
includes
any
applicable
maximum
sales
charge,
Fund
expenses,
account
fees
and
reinvested
distributions.
The
unmanaged
index
includes
reinvestment
of
any
income
or
distributions.
It
differs
from
the
Fund
in
composition
and
does
not
pay
management
fees
or
expenses.
One
cannot
invest
directly
in
an
index.
Class
A
(3/1/12–2/28/22)
Advisor
Class
(3/1/12–2/28/22)
Franklin
Maryland
Tax-Free
Income
Fund
Performance
Summary
27
franklintempleton.com
Annual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
Because
municipal
bonds
are
sensitive
to
interest
rate
movements,
the
Fund’s
yield
and
share
price
will
fluctuate
with
market
conditions.
Bond
prices
generally
move
in
the
opposite
direction
of
interest
rates.
Thus,
as
prices
of
bonds
in
the
Fund
adjust
to
a
rise
in
interest
rates,
the
Fund’s
share
price
may
decline.
Because
the
Fund
invests
principally
in
a
single
state,
it
is
subject
to
greater
risk
of
adverse
economic
and
regulatory
changes
in
that
state
than
a
geographically
diversified
fund.
Changes
in
the
credit
rating
of
a
bond,
or
in
the
credit
rating
or
financial
strength
of
a
bond’s
issuer,
insurer
or
guarantor,
may
affect
the
bond’s
value.
The
Fund
may
invest
a
significant
part
of
its
assets
in
municipal
securities
that
finance
similar
types
of
projects,
such
as
utilities,
hospitals,
higher
education
and
transportation.
A
change
that
affects
one
project
would
likely
affect
all
similar
projects,
thereby
increasing
market
risk.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
im-
posed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
February
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
2/28/22.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
12/20/21
for
the
maximum
combined
effective
federal
and
Maryland
state
and
local
personal
income
tax
rate
of
49.75%,
based
on
the
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
Source:
Morningstar.
The
Bloomberg
Municipal
Bond
Index
is
a
market
value-weighted
index
of
tax-exempt,
investment-grade
municipal
bonds
with
maturities
of
one
year
or
more.
9.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(3/1/21–2/28/22)
Share
Class
Net
Investment
Income
A
$0.233373
A1
$0.250068
C
$0.187131
R6
$0.266388
Advisor
$0.261188
Total
Annual
Operating
Expenses
9
Share
Class
A
0.87%
Advisor
0.62%
Your
Fund’s
Expenses
Franklin
Maryland
Tax-Free
Income
Fund
28
franklintempleton.com
Annual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
181/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements,
for
Class
R6.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
9/1/21
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$969.71
$4.23
$1,020.50
$4.34
0.87%
A1
$1,000
$970.43
$3.50
$1,021.24
$3.59
0.72%
C
$1,000
$968.36
$6.13
$1,018.57
$6.28
1.26%
R6
$1,000
$971.18
$2.78
$1,021.97
$2.85
0.57%
Advisor
$1,000
$971.84
$3.01
$1,021.74
$3.09
0.62%
29
franklintempleton.com
Annual
Report
Franklin
Missouri
Tax-Free
Income
Fund
This
annual
report
for
Franklin
Missouri
Tax-Free
Income
Fund
covers
the
fiscal
year
ended
February
28,
2022
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
investors
with
as
high
a
level
of
income
exempt
from
federal
and
Missouri
personal
income
taxes
as
is
consistent
with
prudent
investment
management
and
the
preservation
of
shareholders’
capital
by
normally
investing
at
least
80%
of
its
total
assets
in
securities
that
pay
interest
free
from
such
taxes.
1
Performance
Overview
The
Fund’s
Class
A
share
price,
as
measured
by
net
asset
value,
decreased
from
$11.85
on
February
28,
2021,
to
$11.48
on
February
28,
2022.
The
Fund’s
Class
A
shares
paid
dividends
totaling
27.8948
cents
per
share
for
the
same
period.
2
The
Performance
Summary
beginning
on
page
31
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
2.17%,
based
on
an
annualization
of
February’s
2.1572
cents
per
share
monthly
dividend
and
the
maximum
offering
price
of
$11.93
on
February
28,
2022.
An
investor
in
the
2022
maximum
combined
effective
federal
and
Missouri
personal
income
tax
bracket
of
46.20%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
4.03%
from
a
taxable
investment
to
match
the
Fund’s
Class
A
tax-free
distribution
rate.
For
other
performance
data,
please
see
the
Performance
Summary.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
State
Update
During
the
12-month
period,
Missouri’s
economy
grew
at
a
brisk
pace
amid
a
rebound
in
consumer
spending
and
continued
resumption
of
in-person
activities.
The
state’s
economy
benefited
from
high
industrial
and
employment
diversity
and
low
business
costs.
The
state’s
unemployment
rate
began
the
period
at
4.9%
and
ended
at
3.7%,
compared
with
the
3.8%
national
rate.
The
state
legislature
passed
a
fiscal
year
(FY)
2022
budget
that
increased
education
and
health
care
spending,
and
higher-than-expected
revenues
meant
that
the
state
faced
a
significant
projected
surplus.
The
state’s
net
tax-supported
debt
was
$413
per
capita
and
0.8%
of
personal
income,
substantially
below
the
$1,039
and
1.9%
national
medians,
respectively.
3
Independent
credit
rating
agency
Moody’s
Investors
Service
maintained
the
state’s
general
obligation
bonds’
Aaa
rating
with
a
stable
outlook.
4
The
rating
reflected
Moody’s
view
of
Missouri’s
strong
executive
powers
to
address
revenue
shortfalls,
stable
budget
reserves,
historically
conservative
fiscal
policies
and
a
below-average
debt
and
pension
burden.
According
to
Moody’s,
challenges
include
limits
to
the
state’s
ability
to
increase
revenue
and
a
requirement
to
issue
taxpayer
rebates
when
revenue
growth
exceeds
personal
income
growth.
Moody’s
stable
outlook
reflected
the
state’s
solid
revenue
cushion
in
the
FY
2022
budget,
strong
liquidity,
high
expenditure
flexibility
and
limited
future
borrowing
plans.
*
Does
not
include
cash
and
cash
equivalents.
Manager’s
Discussion
We
used
various
investment
strategies
during
the
12
months
under
review
as
we
sought
to
maximize
tax-free
income
for
shareholders.
Please
read
the
Investment
Strategy
and
Manager’s
Discussion
on
page
4
for
more
information.
Portfolio
Composition
2/28/22
%
of
Total
Investments*
Health
Care
26.02%
Utilities
19.78%
Lease
15.99%
Local
11.23%
Education
8.42%
Transportation
6.61%
Housing
6.11%
Refunded
2.12%
Special
Tax
1.98%
Industrial
Dev.
Revenue
and
Pollution
Control
1.74%
1.
For
investors
subject
to
alternative
minimum
tax,
a
small
portion
of
the
Fund
dividends
may
be
taxable.
Distributions
of
capital
gains
are
generally
taxable.
To
avoid
impo-
sition
of
28%
backup
withholding
on
all
Fund
distributions
and
redemption
proceeds,
U.S.
investors
must
be
properly
certified
on
Form
W-9
and
non-U.S.
investors
on
Form
W-8BEN.
2.
The
distribution
amount
is
the
sum
of
all
net
investment
income
distributions
for
the
period
shown.
Assumes
shares
were
purchased
and
held
for
the
entire
accrual
period.
Since
dividends
accrue
daily,
your
actual
distributions
will
vary
depending
on
the
date
you
purchased
your
shares
and
any
account
activity.
All
Fund
distributions
will
vary
depending
upon
current
market
conditions,
and
past
distributions
are
not
indicative
of
future
trends.
3.
Source:
Moody’s
Investors
Service,
State
government
–
US:
Medians
–
State
debt
rose
2.5%
in
2020,
spurred
by
pandemic-linked
borrowing
,
6/14/21.
4.
This
does
not
indicate
Moody’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
90
.
Franklin
Missouri
Tax-Free
Income
Fund
30
franklintempleton.com
Annual
Report
Thank
you
for
your
continued
participation
in
Franklin
Missouri
Tax-Free
Income
Fund.
We
look
forward
to
serving
your
future
investment
needs.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
February
28,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Performance
Summary
as
of
February
28,
2022
Franklin
Missouri
Tax-Free
Income
Fund
31
franklintempleton.com
Annual
Report
The
performance
tables
and
graphs
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
2/28/22
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
1-Year
-0.84%
-4.56%
5-Year
+12.21%
+1.55%
10-Year
+25.43%
+1.90%
Advisor
1-Year
-0.50%
-0.50%
5-Year
+13.36%
+2.54%
10-Year
+27.29%
+2.44%
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
A
2.17%
4.03%
1.51%
2.81%
Advisor
2.48%
4.61%
1.82%
3.38%
See
page
33
for
Performance
Summary
footnotes.
Franklin
Missouri
Tax-Free
Income
Fund
Performance
Summary
32
franklintempleton.com
Annual
Report
See
page
33
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
Total
return
represents
the
change
in
value
of
an
investment
over
the
periods
shown.
It
includes
any
applicable
maximum
sales
charge,
Fund
expenses,
account
fees
and
reinvested
distributions.
The
unmanaged
index
includes
reinvestment
of
any
income
or
distributions.
It
differs
from
the
Fund
in
composition
and
does
not
pay
management
fees
or
expenses.
One
cannot
invest
directly
in
an
index.
Class
A
(3/1/12–2/28/22)
Advisor
Class
(3/1/12–2/28/22)
Franklin
Missouri
Tax-Free
Income
Fund
Performance
Summary
33
franklintempleton.com
Annual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
Because
municipal
bonds
are
sensitive
to
interest
rate
movements,
the
Fund’s
yield
and
share
price
will
fluctuate
with
market
conditions.
Bond
prices
generally
move
in
the
opposite
direction
of
interest
rates.
Thus,
as
prices
of
bonds
in
the
Fund
adjust
to
a
rise
in
interest
rates,
the
Fund’s
share
price
may
decline.
Because
the
Fund
invests
principally
in
a
single
state,
it
is
subject
to
greater
risk
of
adverse
economic
and
regulatory
changes
in
that
state
than
a
geographically
diversified
fund.
Changes
in
the
credit
rating
of
a
bond,
or
in
the
credit
rating
or
financial
strength
of
a
bond’s
issuer,
insurer
or
guarantor,
may
affect
the
bond’s
value.
The
Fund
may
invest
a
significant
part
of
its
assets
in
municipal
securities
that
finance
similar
types
of
projects,
such
as
utilities,
hospitals,
higher
education
and
transportation.
A
change
that
affects
one
project
would
likely
affect
all
similar
projects,
thereby
increasing
market
risk.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
im-
posed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
February
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
2/28/22.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
12/20/21
for
the
maximum
combined
effective
federal
and
Missouri
personal
income
tax
rate
of
46.20%,
based
on
the
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
Source:
Morningstar.
The
Bloomberg
Municipal
Bond
Index
is
a
market
value-weighted
index
of
tax-exempt,
investment-grade
municipal
bonds
with
maturities
of
one
year
or
more.
9.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(3/1/21–2/28/22)
Share
Class
Net
Investment
Income
A
$0.278948
A1
$0.296963
C
$0.230173
R6
$0.312655
Advisor
$0.308931
Total
Annual
Operating
Expenses
9
Share
Class
A
0.81%
Advisor
0.56%
Your
Fund’s
Expenses
Franklin
Missouri
Tax-Free
Income
Fund
34
franklintempleton.com
Annual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
181/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements,
for
Class
R6.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
9/1/21
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$967.80
$3.91
$1,020.82
$4.02
0.80%
A1
$1,000
$968.50
$3.18
$1,021.56
$3.27
0.65%
C
$1,000
$966.20
$5.83
$1,018.86
$5.99
1.20%
R6
$1,000
$969.20
$2.55
$1,022.20
$2.62
0.52%
Advisor
$1,000
$969.90
$2.70
$1,022.06
$2.77
0.55%
35
franklintempleton.com
Annual
Report
Franklin
North
Carolina
Tax-Free
Income
Fund
This
annual
report
for
Franklin
North
Carolina
Tax-Free
Income
Fund
covers
the
fiscal
year
ended
February
28,
2022.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
investors
with
as
high
a
level
of
income
exempt
from
federal
and
North
Carolina
personal
income
taxes
as
is
consistent
with
prudent
investment
management
and
the
preservation
of
shareholders’
capital
by
normally
investing
at
least
80%
of
its
total
assets
in
securities
that
pay
interest
free
from
such
taxes.
1
Performance
Overview
The
Fund’s
Class
A
share
price,
as
measured
by
net
asset
value,
decreased
from
$11.62
on
February
28,
2021,
to
$11.31
on
February
28,
2022.
The
Fund’s
Class
A
shares
paid
dividends
totaling
21.3379
cents
per
share
for
the
same
period.
2
The
Performance
Summary
beginning
on
page
37
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
1.66%,
based
on
an
annualization
of
February’s
1.6244
cents
per
share
monthly
dividend
and
the
maximum
offering
price
of
$11.75
on
February
28,
2022.
An
investor
in
the
2022
maximum
combined
effective
federal
and
North
Carolina
personal
income
tax
bracket
of
45.79%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
3.06%
from
a
taxable
investment
to
match
the
Fund’s
Class
A
tax-free
distribution
rate.
For
other
performance
data,
please
see
the
Performance
Summary.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
State
Update
During
the
12-month
period,
North
Carolina’s
economy
grew
at
a
brisk
pace
amid
a
rebound
in
consumer
spending
and
continued
resumption
of
in-person
activities.
The
state’s
unemployment
rate
began
the
period
at
5.4%
and
ended
at
3.7%,
compared
with
the
3.8%
national
rate.
A
budget
for
the
fiscal
year
2022-2023
biennium
was
signed
into
law
in
November
2021
following
several
years
where
disagreements
between
the
governor
and
the
state
legislature
prevented
enactment
of
a
comprehensive
budget.
The
state’s
net
tax-supported
debt
was
$581
per
capita
and
1.2%
of
personal
income,
substantially
lower
than
the
$1,039
and
1.9%
national
medians,
respectively.
3
Independent
credit
rating
agency
Moody’s
Investors
Service
maintained
the
state’s
general
obligation
bonds’
Aaa
rating
with
a
stable
outlook,
reflecting
North
Carolina’s
fiscal
and
budgeting
practices,
as
well
as
an
accelerating
economic
recovery.
4
The
rating
and
outlook
reflect
Moody’s
view
of
North
Carolina’s
diverse
economy
with
strong
employment
and
population
growth,
history
of
conservative
fiscal
management
and
budgeting,
strong
executive
powers
to
cut
spending,
and
commitment
to
maintain
healthy
reserves
and
affordable
debt
and
pension
liabilities.
According
to
Moody’s,
credit
challenges
include
controlling
expenditure
pressures
amid
continued
growth,
as
well
as
the
differences
between
the
governor
and
state
legislature
that
delayed
budget
adoption.
*Does
not
include
cash
and
cash
equivalents.
Portfolio
Composition
2/28/22
%
of
Total
Investments*
Education
19.30%
Health
Care
16.68%
Utilities
13.22%
Refunded
11.80%
Housing
10.04%
Transportation
9.75%
Lease
9.25%
Local
7.68%
State
General
Obligation
2.22%
Special
Tax
0.06%
1.
For
investors
subject
to
alternative
minimum
tax,
a
small
portion
of
the
Fund
dividends
may
be
taxable.
Distributions
of
capital
gains
are
generally
taxable.
To
avoid
impo-
sition
of
28%
backup
withholding
on
all
Fund
distributions
and
redemption
proceeds,
U.S.
investors
must
be
properly
certified
on
Form
W-9
and
non-U.S.
investors
on
Form
W-8BEN.
2.
The
distribution
amount
is
the
sum
of
all
net
investment
income
distributions
for
the
period
shown.
Assumes
shares
were
purchased
and
held
for
the
entire
accrual
period.
Since
dividends
accrue
daily,
your
actual
distributions
will
vary
depending
on
the
date
you
purchased
your
shares
and
any
account
activity.
All
Fund
distributions
will
vary
depending
upon
current
market
conditions,
and
past
distributions
are
not
indicative
of
future
trends.
3.
Source:
Moody’s
Investors
Service,
State
government
–
US:
Medians
–
State
debt
rose
2.5%
in
2020,
spurred
by
pandemic-linked
borrowing
,
6/14/21.
4.
This
does
not
indicate
Moody’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
101
.
Franklin
North
Carolina
Tax-Free
Income
Fund
36
franklintempleton.com
Annual
Report
Manager’s
Discussion
We
used
various
investment
strategies
during
the
12
months
under
review
as
we
sought
to
maximize
tax-free
income
for
shareholders.
Please
read
the
Investment
Strategy
and
Manager’s
Discussion
on
page
4
for
more
information.
Thank
you
for
your
continued
participation
in
Franklin
North
Carolina
Tax-Free
Income
Fund.
We
look
forward
to
serving
your
future
investment
needs.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
February
28,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Performance
Summary
as
of
February
28,
2022
Franklin
North
Carolina
Tax-Free
Income
Fund
37
franklintempleton.com
Annual
Report
The
performance
tables
and
graphs
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
2/28/22
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
1-Year
-0.89%
-4.60%
5-Year
+9.92%
+1.13%
10-Year
+20.42%
+1.49%
Advisor
1-Year
-0.64%
-0.64%
5-Year
+11.05%
+2.12%
10-Year
+22.31%
+2.03%
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
A
1.66%
3.06%
1.35%
2.49%
Advisor
1.95%
3.60%
1.65%
3.04%
See
page
39
for
Performance
Summary
footnotes.
Franklin
North
Carolina
Tax-Free
Income
Fund
Performance
Summary
38
franklintempleton.com
Annual
Report
See
page
39
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
Total
return
represents
the
change
in
value
of
an
investment
over
the
periods
shown.
It
includes
any
applicable
maximum
sales
charge,
Fund
expenses,
account
fees
and
reinvested
distributions.
The
unmanaged
index
includes
reinvestment
of
any
income
or
distributions.
It
differs
from
the
Fund
in
composition
and
does
not
pay
management
fees
or
expenses.
One
cannot
invest
directly
in
an
index.
Class
A
(3/1/12–2/28/22)
Advisor
Class
(3/1/12–2/28/22)
Franklin
North
Carolina
Tax-Free
Income
Fund
Performance
Summary
39
franklintempleton.com
Annual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
Because
municipal
bonds
are
sensitive
to
interest
rate
movements,
the
Fund’s
yield
and
share
price
will
fluctuate
with
market
conditions.
Bond
prices
generally
move
in
the
opposite
direction
of
interest
rates.
Thus,
as
prices
of
bonds
in
the
Fund
adjust
to
a
rise
in
interest
rates,
the
Fund’s
share
price
may
decline.
Because
the
Fund
invests
principally
in
a
single
state,
it
is
subject
to
greater
risk
of
adverse
economic
and
regulatory
changes
in
that
state
than
a
geographically
diversified
fund.
Changes
in
the
credit
rating
of
a
bond,
or
in
the
credit
rating
or
financial
strength
of
a
bond’s
issuer,
insurer
or
guarantor,
may
affect
the
bond’s
value.
The
Fund
may
invest
a
significant
part
of
its
assets
in
municipal
securities
that
finance
similar
types
of
projects,
such
as
utilities,
hospitals,
higher
education
and
transportation.
A
change
that
affects
one
project
would
likely
affect
all
similar
projects,
thereby
increasing
market
risk.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
im-
posed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
February
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
2/28/22.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
12/20/21
for
the
maximum
combined
effective
federal
and
North
Carolina
personal
income
tax
rate
of
45.79%,
based
on
the
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
Source:
Morningstar.
The
Bloomberg
Municipal
Bond
Index
is
a
market
value-weighted
index
of
tax-exempt,
investment-grade
municipal
bonds
with
maturities
of
one
year
or
more.
9.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(3/1/21–2/28/22)
Share
Class
Net
Investment
Income
A
$0.213379
A1
$0.231086
C
$0.164876
R6
$0.247269
Advisor
$0.242852
Total
Annual
Operating
Expenses
9
Share
Class
A
0.81%
Advisor
0.56%
Your
Fund’s
Expenses
Franklin
North
Carolina
Tax-Free
Income
Fund
40
franklintempleton.com
Annual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
181/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements,
for
Class
R6.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
9/1/21
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$966.80
$4.01
$1,020.71
$4.12
0.82%
A1
$1,000
$967.60
$3.28
$1,021.46
$3.37
0.67%
C
$1,000
$963.80
$5.91
$1,018.77
$6.08
1.21%
R6
$1,000
$967.40
$2.61
$1,022.14
$2.68
0.53%
Advisor
$1,000
$968.00
$2.80
$1,021.95
$2.87
0.57%
41
franklintempleton.com
Annual
Report
Franklin
Virginia
Tax-Free
Income
Fund
This
annual
report
for
Franklin
Virginia
Tax-Free
Income
Fund
covers
the
fiscal
year
ended
February
28,
2022
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
investors
with
as
high
a
level
of
income
exempt
from
federal
and
Virginia
personal
income
taxes
as
is
consistent
with
prudent
investment
management
and
the
preservation
of
shareholders’
capital
by
normally
investing
at
least
80%
of
its
total
assets
in
securities
that
pay
interest
free
from
such
taxes.
1
Performance
Overview
The
Fund’s
Class
A
share
price,
as
measured
by
net
asset
value,
decreased
from
$11.13
on
February
28,
2021,
to
$10.79
on
February
28,
2022.
The
Fund’s
Class
A
shares
paid
dividends
totaling
19.2268
cents
per
share
for
the
same
period.
2
The
Performance
Summary
beginning
on
page
43
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
1.59%,
based
on
an
annualization
of
February’s
1.4882
cents
per
share
monthly
dividend
and
the
maximum
offering
price
of
$11.21
on
February
28,
2022.
An
investor
in
the
2022
maximum
combined
effective
federal
and
Virginia
personal
income
tax
bracket
of
46.55%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
2.97%
from
a
taxable
investment
to
match
the
Fund’s
Class
A
tax-free
distribution
rate.
For
other
performance
data,
please
see
the
Performance
Summary.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236.
Commonwealth
Update
During
the
12-month
period,
Virginia’s
economy
grew
at
a
brisk
pace
amid
a
rebound
in
consumer
spending
and
continued
resumption
of
in-person
activities.
The
commonwealth’s
economic
growth
was
aided
by
the
sizable
federal
presence
and
its
growing
technology-related
services
industry.
Virginia’s
unemployment
rate
began
the
period
at
4.6%
and
ended
at
3.2%,
compared
with
the
3.8%
national
rate.
Better-than-expected
growth
in
revenues,
federal
stimulus
payments
and
restrained
spending
practices
led
to
a
significant
budget
surplus
at
the
end
of
fiscal
year
(FY)
2021.
The
governor’s
proposed
biennial
budget
for
FY
2022-2024
included
tax
cuts
and
pay
raises
for
teachers
and
other
public
employees.
Virginia’s
net
tax-supported
debt
was
$1,746
per
capita
and
2.8%
of
personal
income,
higher
than
the
$1,039
and
1.9%
national
medians,
respectively.
3
Independent
credit
rating
agency
Moody’s
Investors
Service
maintained
Virginia’s
general
obligation
bonds’
Aaa
rating
with
a
stable
outlook,
reflecting
Moody’s
opinion
that
Virginia’s
strong
governance
and
financial
management
practices
will
help
the
commonwealth
maintain
budgetary
balance.
4
The
rating
reflects
Moody’s
view
of
the
commonwealth’s
conservative
fiscal
management,
including
strong
debt
and
pension
management
practices
that
drive
below-average
liabilities.
According
to
Moody’s,
Virginia’s
challenges
include
education
and
transportation
needs
amid
more
limited
resources
and
vulnerability
to
federal
downsizing.
*
Does
not
include
cash
and
cash
equivalents.
Portfolio
Composition
2/28/22
%
of
Total
Investments*
Health
Care
21.01%
Transportation
15.15%
Refunded
11.99%
Lease
11.77%
Utilities
11.01%
Education
10.66%
Special
Tax
7.48%
Housing
5.58%
Other
Revenue
Bonds
1.89%
Local
1.23%
State
General
Obligation
1.18%
Industrial
Dev.
Revenue
and
Pollution
Control
1.05%
1.
For
investors
subject
to
alternative
minimum
tax,
a
small
portion
of
the
Fund
dividends
may
be
taxable.
Distributions
of
capital
gains
are
generally
taxable.
To
avoid
impo-
sition
of
28%
backup
withholding
on
all
Fund
distributions
and
redemption
proceeds,
U.S.
investors
must
be
properly
certified
on
Form
W-9
and
non-U.S.
investors
on
Form
W-8BEN.
2.
The
distribution
amount
is
the
sum
of
all
net
investment
income
distributions
for
the
period
shown.
Assumes
shares
were
purchased
and
held
for
the
entire
accrual
period.
Since
dividends
accrue
daily,
your
actual
distributions
will
vary
depending
on
the
date
you
purchased
your
shares
and
any
account
activity.
All
Fund
distributions
will
vary
depending
upon
current
market
conditions,
and
past
distributions
are
not
indicative
of
future
trends.
3.
Source:
Moody’s
Investors
Service,
State
government
–
US:
Medians
–
State
debt
rose
2.5%
in
2020,
spurred
by
pandemic-linked
borrowing
,
6/14/21.
4.
This
does
not
indicate
Moody’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
112
.
Franklin
Virginia
Tax-Free
Income
Fund
42
franklintempleton.com
Annual
Report
Manager’s
Discussion
We
used
various
investment
strategies
during
the
12
months
under
review
as
we
sought
to
maximize
tax-free
income
for
shareholders.
Please
read
the
Investment
Strategy
and
Manager’s
Discussion
on
page
4
for
more
information.
Thank
you
for
your
continued
participation
in
Franklin
Virginia
Tax-Free
Income
Fund.
We
look
forward
to
serving
your
future
investment
needs.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
February
28,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Performance
Summary
as
of
February
28,
2022
Franklin
Virginia
Tax-Free
Income
Fund
43
franklintempleton.com
Annual
Report
The
performance
tables
and
graphs
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
2/28/22
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
1-Year
-1.38%
-5.08%
5-Year
+8.33%
+0.84%
10-Year
+21.46%
+1.57%
Advisor
1-Year
-1.05%
-1.05%
5-Year
+9.54%
+1.84%
10-Year
+23.36%
+2.12%
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
A
1.59%
2.97%
1.35%
2.53%
Advisor
1.89%
3.54%
1.65%
3.09%
See
page
45
for
Performance
Summary
footnotes.
Franklin
Virginia
Tax-Free
Income
Fund
Performance
Summary
44
franklintempleton.com
Annual
Report
See
page
45
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
Total
return
represents
the
change
in
value
of
an
investment
over
the
periods
shown.
It
includes
any
applicable
maximum
sales
charge,
Fund
expenses,
account
fees
and
reinvested
distributions.
The
unmanaged
index
includes
reinvestment
of
any
income
or
distributions.
It
differs
from
the
Fund
in
composition
and
does
not
pay
management
fees
or
expenses.
One
cannot
invest
directly
in
an
index.
Class
A
(3/1/12–2/28/22)
Advisor
Class
(3/1/12–2/28/22)
Franklin
Virginia
Tax-Free
Income
Fund
Performance
Summary
45
franklintempleton.com
Annual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
Because
municipal
bonds
are
sensitive
to
interest
rate
movements,
the
Fund’s
yield
and
share
price
will
fluctuate
with
market
conditions.
Bond
prices
generally
move
in
the
opposite
direction
of
interest
rates.
Thus,
as
prices
of
bonds
in
the
Fund
adjust
to
a
rise
in
interest
rates,
the
Fund’s
share
price
may
decline.
Because
the
Fund
invests
principally
in
a
single
state,
it
is
subject
to
greater
risk
of
adverse
economic
and
regulatory
changes
in
that
state
than
a
geographically
diversified
fund.
Changes
in
the
credit
rating
of
a
bond,
or
in
the
credit
rating
or
financial
strength
of
a
bond’s
issuer,
insurer
or
guarantor,
may
affect
the
bond’s
value.
The
Fund
may
invest
a
significant
part
of
its
assets
in
municipal
securities
that
finance
similar
types
of
projects,
such
as
utilities,
hospitals,
higher
education
and
transportation.
A
change
that
affects
one
project
would
likely
affect
all
similar
projects,
thereby
increasing
market
risk.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
im-
posed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
February
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
2/28/22.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
12/20/21
for
the
maximum
combined
effective
federal
and
Virginia
personal
income
tax
rate
of
46.55%,
based
on
the
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
Source:
Morningstar.
The
Bloomberg
Municipal
Bond
Index
is
a
market
value-weighted
index
of
tax-exempt,
investment-grade
municipal
bonds
with
maturities
of
one
year
or
more.
9.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(3/1/21–2/28/22)
Share
Class
Net
Investment
Income
A
$0.192268
A1
$0.209184
C
$0.145773
R6
$0.225534
Advisor
$0.220433
Total
Annual
Operating
Expenses
9
Share
Class
A
0.84%
Advisor
0.59%
Your
Fund’s
Expenses
Franklin
Virginia
Tax-Free
Income
Fund
46
franklintempleton.com
Annual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
181/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements,
for
Class
R6.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
9/1/21
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$963.08
$4.11
$1,020.61
$4.23
0.84%
A1
$1,000
$964.66
$3.38
$1,021.35
$3.48
0.69%
C
$1,000
$961.76
$5.98
$1,018.70
$6.16
1.23%
R6
$1,000
$965.40
$2.66
$1,022.09
$2.74
0.55%
Advisor
$1,000
$965.17
$2.89
$1,021.85
$2.98
0.59%
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Alabama
Tax-Free
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
47
a
Year
Ended
February
28,
Year
Ended
February
28,
2019
b
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
................................
$11.18
$11.40
$10.85
$10.79
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.22
0.28
0.30
0.15
Net
realized
and
unrealized
gains
(losses)
........................
(0.21)
(0.23)
0.57
0.06
Total
from
investment
operations
.................................
0.01
0.05
0.87
0.21
Less
distributions
from:
Net
investment
income
.......................................
(0.22)
(0.27)
(0.32)
(0.15)
Net
asset
value,
end
of
year
....................................
$10.97
$11.18
$11.40
$10.85
Total
return
e
................................................
0.02%
0.49%
8.08%
1.98%
Ratios
to
average
net
assets
f
Expenses
g
.................................................
0.91%
0.91%
0.91%
0.92%
Net
investment
income
........................................
1.91%
2.46%
2.70%
2.91%
Supplemental
data
Net
assets,
end
of
year
(000’s)
..................................
$46,633
$30,415
$16,423
$7,334
Portfolio
turnover
rate
.........................................
20.50%
24.03%
4.87%
8.57%
a
For
the
year
ended
February
29.
b
For
the
period
September
10,
2018
(effective
date)
to
February
28,
2019.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Alabama
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
48
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.16
$11.38
$10.84
$10.88
$11.16
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.23
0.30
0.32
0.33
0.35
Net
realized
and
unrealized
gains
(losses)
...........
(0.20)
(0.23)
0.55
(0.04)
(0.27)
Total
from
investment
operations
....................
0.03
0.07
0.87
0.29
0.08
Less
distributions
from:
Net
investment
income
..........................
(0.24)
(0.29)
(0.33)
(0.33)
(0.36)
Net
asset
value,
end
of
year
.......................
$10.95
$11.16
$11.38
$10.84
$10.88
Total
return
d
...................................
0.17%
0.64%
8.16%
2.76%
0.72%
Ratios
to
average
net
assets
Expenses
.....................................
0.76%
e
0.77%
e
0.76%
e
0.77%
e
0.74%
Net
investment
income
...........................
2.07%
2.66%
2.85%
3.06%
3.16%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$163,571
$174,802
$186,486
$188,290
$208,340
Portfolio
turnover
rate
............................
20.50%
24.03%
4.87%
8.57%
14.66%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Alabama
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
49
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.32
$11.54
$10.98
$11.02
$11.30
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.17
0.24
0.26
0.27
0.29
Net
realized
and
unrealized
gains
(losses)
...........
(0.22)
(0.23)
0.57
(0.04)
(0.27)
Total
from
investment
operations
....................
(0.05)
0.01
0.83
0.23
0.02
Less
distributions
from:
Net
investment
income
..........................
(0.17)
(0.23)
(0.27)
(0.27)
(0.30)
Net
asset
value,
end
of
year
.......................
$11.10
$11.32
$11.54
$10.98
$11.02
Total
return
d
...................................
(0.38)%
(0.01)%
7.68%
2.15%
0.16%
Ratios
to
average
net
assets
Expenses
.....................................
1.30%
e
1.31%
e
1.31%
e
1.32%
e
1.29%
Net
investment
income
...........................
1.51%
2.10%
2.30%
2.51%
2.61%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$13,416
$23,374
$31,175
$30,641
$45,422
Portfolio
turnover
rate
............................
20.50%
24.03%
4.87%
8.57%
14.66%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Alabama
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
50
a
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2022
2021
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.17
$11.39
$10.84
$10.88
$11.13
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.25
0.31
0.33
0.35
0.22
Net
realized
and
unrealized
gains
(losses)
...........
(0.22)
(0.22)
0.57
(0.04)
(0.26)
Total
from
investment
operations
....................
0.03
0.09
0.90
0.31
(0.04)
Less
distributions
from:
Net
investment
income
..........................
(0.25)
(0.31)
(0.35)
(0.35)
(0.21)
Net
asset
value,
end
of
year
.......................
$10.95
$11.17
$11.39
$10.84
$10.88
Total
return
e
...................................
0.22%
0.77%
8.39%
2.78%
(0.26)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
......
0.65%
0.65%
0.65%
0.65%
0.66%
Expenses
net
of
waiver
and
payments
by
affiliates
.......
0.63%
g
0.63%
g
0.63%
g
0.63%
g
0.61%
Net
investment
income
...........................
2.19%
2.78%
2.98%
3.20%
3.29%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$2,308
$1,756
$1,664
$824
$1,516
Portfolio
turnover
rate
............................
20.50%
24.03%
4.87%
8.57%
14.66%
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Alabama
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
51
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.17
$11.39
$10.84
$10.88
$11.16
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.25
0.31
0.33
0.34
0.36
Net
realized
and
unrealized
gains
(losses)
...........
(0.22)
(0.23)
0.56
(0.04)
(0.27)
Total
from
investment
operations
....................
0.03
0.08
0.89
0.30
0.09
Less
distributions
from:
Net
investment
income
..........................
(0.25)
(0.30)
(0.34)
(0.34)
(0.37)
Net
asset
value,
end
of
year
.......................
$10.95
$11.17
$11.39
$10.84
$10.88
Total
return
....................................
0.18%
0.74%
8.36%
2.86%
0.82%
Ratios
to
average
net
assets
Expenses
.....................................
0.66%
d
0.67%
d
0.66%
d
0.67%
d
0.64%
Net
investment
income
...........................
2.16%
2.74%
2.95%
3.16%
3.26%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$19,796
$15,036
$11,709
$8,335
$7,689
Portfolio
turnover
rate
............................
20.50%
2
4.03%
4.87%
8.57%
14.66%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments,
February
28,
2022
Franklin
Alabama
Tax-Free
Income
Fund
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
52
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
96.8%
Alabama
90.8%
Alabama
Community
College
System
,
Bishop
State
Community
College
,
Revenue
,
2019
,
BAM
Insured
,
4
%
,
1/01/49
......................................
$
2,000,000
$
2,168,648
Alabama
Federal
Aid
Highway
Finance
Authority
,
Revenue
,
2017
A
,
Pre-Refunded
,
5
%
,
6/01/37
.........................................................
4,130,000
4,907,523
Alabama
Special
Care
Facilities
Financing
Authority-Birmingham
,
Ascension
Health
Credit
Group
,
Revenue
,
2016
B
,
Refunding
,
5
%
,
11/15/46
...................
3,000,000
3,378,876
Auburn
University
,
Revenue
,
2015
A
,
Refunding
,
5
%
,
6/01/33
..................
2,500,000
2,764,627
Bessemer
Governmental
Utility
Services
Corp.
,
Water
,
Revenue
,
2017
,
Refunding
,
BAM
Insured
,
5
%
,
6/01/39
...........................................
6,000,000
7,011,852
Birmingham
Airport
Authority
,
Revenue,
2020,
Refunding,
BAM
Insured,
5%,
7/01/32
......................
300,000
368,731
Revenue,
2020,
Refunding,
BAM
Insured,
5%,
7/01/33
......................
325,000
399,070
Revenue,
2020,
Refunding,
BAM
Insured,
5%,
7/01/34
......................
400,000
490,685
Revenue,
2020,
Refunding,
BAM
Insured,
4%,
7/01/35
......................
350,000
395,069
Revenue,
2020,
Refunding,
BAM
Insured,
4%,
7/01/36
......................
500,000
563,824
Revenue,
2020,
Refunding,
BAM
Insured,
4%,
7/01/37
......................
545,000
614,093
Revenue,
2020,
Refunding,
BAM
Insured,
4%,
7/01/38
......................
400,000
449,867
Revenue,
2020,
Refunding,
BAM
Insured,
4%,
7/01/39
......................
2,540,000
2,851,432
Revenue,
2020,
Refunding,
BAM
Insured,
4%,
7/01/40
......................
705,000
790,151
Birmingham-Jefferson
Civic
Center
Authority
,
Special
Tax
,
2018
A
,
5
%
,
7/01/33
.....
1,605,000
1,867,710
a
Black
Belt
Energy
Gas
District
,
Revenue,
2021
A,
Refunding,
Mandatory
Put,
4%,
12/01/31
..................
2,000,000
2,310,123
Revenue,
2022
A,
Mandatory
Put,
4%,
12/01/29
...........................
1,000,000
1,110,110
Board
of
Water
&
Sewer
Commissioners
of
the
City
of
Mobile
,
Revenue
,
2014
,
Refunding
,
5
%
,
1/01/36
.............................................
10,000,000
10,319,751
Calhoun
County
Board
of
Education
,
Special
Tax
,
2016
,
Pre-Refunded
,
BAM
Insured
,
5
%
,
2/01/46
......................................................
6,000,000
6,826,180
City
of
Bessemer
,
Water
,
Revenue
,
2017
,
Refunding
,
AGMC
Insured
,
5
%
,
1/01/47
...
2,590,000
2,964,241
City
of
Birmingham
,
GO
,
2021
A
,
4
%
,
6/01/50
..............................
2,500,000
2,823,995
City
of
Boaz
,
Water
&
Sewer,
Revenue,
2021,
AGMC
Insured,
4%,
9/01/46
.................
1,000,000
1,103,136
Water
&
Sewer,
Revenue,
2021,
AGMC
Insured,
4%,
9/01/50
.................
1,500,000
1,648,327
City
of
Decatur
,
Water
&
Sewer
,
Revenue
,
2021
A
,
4
%
,
8/15/50
.................
3,000,000
3,384,153
City
of
Huntsville
,
GO,
2018
B,
5%,
5/01/38
............................................
4,775,000
5,649,634
Water,
Revenue,
2015,
Pre-Refunded,
5%,
11/01/35
.......................
4,000,000
4,460,800
City
of
Lincoln
,
GO
,
2020
,
BAM
Insured
,
4
%
,
6/01/50
........................
2,500,000
2,805,210
City
of
Madison
,
GO
,
2015
A
,
Pre-Refunded
,
5
%
,
4/01/37
.....................
2,590,000
2,881,150
City
of
Pelham
,
GO
,
2014
,
Pre-Refunded
,
5
%
,
2/01/34
.......................
2,635,000
2,827,534
City
of
Trussville
,
GO,
2014
B,
Pre-Refunded,
5%,
10/01/39
...............................
1,895,000
2,012,526
GO,
2018
A,
4%,
8/01/41
............................................
3,000,000
3,366,718
City
of
Tuscaloosa
,
GO
,
2020
A
,
4
%
,
10/01/50
..............................
4,580,000
5,163,406
County
of
Mobile
,
GO,
2020
A,
Refunding,
4%,
8/01/38
...................................
1,000,000
1,148,019
b
Revenue,
144A,
2020,
4%,
11/01/45
...................................
1,000,000
1,029,247
DCH
Healthcare
Authority
,
Revenue,
2015,
Refunding,
5%,
6/01/36
.................................
2,000,000
2,198,363
Revenue,
2021
A,
4%,
6/01/46
........................................
2,310,000
2,532,196
East
Alabama
Health
Care
Authority
(The)
,
Revenue,
2018
A,
4%,
9/01/30
........................................
1,000,000
1,106,701
Revenue,
2018
A,
5%,
9/01/41
........................................
3,000,000
3,500,321
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Alabama
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
53
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Alabama
(continued)
c
Florence
Public
Building
Authority
,
City
of
Florence
,
Revenue
,
2021
,
4
%
,
9/01/35
....
$
500,000
$
565,092
Health
Care
Authority
of
the
City
of
Huntsville
(The)
,
Health
Care
Authority
of
the
City
of
Huntsville
(The)
Obligated
Group
,
Revenue
,
2020
B
,
4
%
,
6/01/45
..............
10,000,000
11,076,977
Homewood
Educational
Building
Authority
,
Samford
University,
Revenue,
2019
A,
Refunding,
4%,
12/01/49
...............
2,500,000
2,705,349
Samford
University,
Revenue,
2021
A,
4%,
12/01/51
.......................
1,470,000
1,603,820
Infirmary
Health
System
Special
Care
Facilities
Financing
Authority
of
Mobile
,
Infirmary
Health
System
Obligated
Group,
Revenue,
2016
A,
5%,
2/01/41
.......
3,000,000
3,312,828
Infirmary
Health
System
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
2/01/46
3,000,000
3,348,376
Jacksonville
State
University
,
Revenue,
2017,
Refunding,
AGMC
Insured,
5%,
12/01/36
...................
5,000,000
5,818,235
Revenue,
2020,
Refunding,
4%,
12/01/50
................................
5,000,000
5,407,642
Limestone
County
Water
&
Sewer
Authority
,
Revenue
,
2015
B
,
Pre-Refunded
,
BAM
Insured
,
5
%
,
12/01/43
..............................................
5,920,000
6,486,964
Madison
City
Board
of
Education
,
Special
Tax
,
2019
,
4
%
,
2/01/44
...............
3,000,000
3,346,705
Madison
Water
&
Wastewater
Board
,
Revenue
,
2017
,
Refunding
,
5
%
,
12/01/41
.....
4,610,000
5,314,047
Marshall
County
Board
of
Education
,
Special
Tax
,
2016
,
AGMC
Insured
,
4
%
,
3/01/41
1,000,000
1,069,619
Opelika
Utilities
Board
,
Revenue
,
2017
,
Refunding
,
4
%
,
6/01/41
................
2,000,000
2,178,243
Oxford
City
Board
of
Education
,
Special
Tax
,
2020
A
,
Refunding
,
4
%
,
5/01/50
......
2,500,000
2,794,544
a
Southeast
Energy
Authority
A
Cooperative
District
,
Revenue,
2021
A,
Mandatory
Put,
4%,
10/01/28
...........................
2,000,000
2,201,158
Revenue,
2021
B,
Mandatory
Put,
4%,
12/01/31
...........................
5,000,000
5,676,747
Special
Care
Facilities
Financing
Authority
of
the
City
of
Pell
City
Alabama
,
Noland
Obligated
Group
,
Revenue
,
2021
A
,
Refunding
,
4
%
,
12/01/39
.................
4,000,000
4,395,679
Talladega
County
Board
of
Education
,
Special
Tax
,
2017
,
Refunding
,
BAM
Insured
,
5
%
,
11/01/39
........................................................
2,000,000
2,331,473
Troy
Public
Educational
Building
Authority
,
Troy
City
Board
of
Education
,
Revenue
,
2011
,
AGMC
Insured
,
5.25
%
,
12/01/40
..................................
295,000
295,955
Tuscaloosa
City
Board
of
Education
,
Revenue
,
2016
,
Pre-Refunded
,
5
%
,
8/01/41
...
4,000,000
4,622,920
Tuscaloosa
County
Board
of
Education
,
Special
Tax
,
2017
,
4
%
,
2/01/47
..........
5,000,000
5,412,556
UAB
Medicine
Finance
Authority
,
UAB
Medicine
Obligated
Group
,
Revenue
,
2016
B
,
Refunding
,
5
%
,
9/01/29
.............................................
5,000,000
5,744,700
University
of
Alabama
(The)
,
Revenue,
2013
D-2,
Pre-Refunded,
5%,
10/01/37
.........................
7,520,000
7,980,262
Revenue,
2018
B2,
5%,
9/01/48
.......................................
5,000,000
5,859,173
University
of
Montevallo
,
Revenue
,
2017
,
Refunding
,
BAM
Insured
,
5
%
,
5/01/42
....
2,500,000
2,888,775
University
of
South
Alabama
,
Revenue
,
2019
A
,
BAM
Insured
,
5
%
,
4/01/49
........
2,000,000
2,352,067
Water
Works
Board
of
the
City
of
Birmingham
(The)
,
Revenue,
2016
B,
Pre-Refunded,
5%,
1/01/43
............................
10,000,000
11,636,586
Revenue,
Senior
Lien,
2016
A,
Pre-Refunded,
4%,
1/01/35
...................
4,000,000
4,478,741
223,099,232
California
0.3%
California
Municipal
Finance
Authority
,
Revenue
,
2022
A-1
,
4.25
%
,
12/01/37
.......
700,000
702,362
Florida
0.2%
b
Capital
Trust
Agency,
Inc.
,
SHI
-
Lake
Osborne
LLC
,
Revenue
,
144A,
2021
A-1
,
3.68
%
,
1/01/57
.........................................................
500,000
447,584
Illinois
0.4%
c
Metropolitan
Pier
&
Exposition
Authority
,
Revenue
,
2022
A
,
Refunding
,
4
%
,
12/15/42
.
1,000,000
1,063,055
New
Jersey
0.1%
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue
,
2019
BB
,
4
%
,
6/15/50
...
250,000
265,554
New
York
1.4%
Metropolitan
Transportation
Authority
,
Revenue,
2020
D,
4%,
11/15/47
.......................................
1,000,000
1,074,243
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Alabama
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
54
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
New
York
(continued)
Metropolitan
Transportation
Authority,
(continued)
Revenue,
2021
A-1,
4%,
11/15/46
.....................................
$
560,000
$
604,521
Revenue,
2021
A-2,
4%,
11/15/42
.....................................
1,600,000
1,741,210
3,419,974
South
Carolina
0.6%
South
Carolina
Jobs-Economic
Development
Authority
,
b
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
500,000
467,875
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
500,000
467,353
b
South
Carolina
State
Housing
Finance
&
Development
Authority
,
Garden
Oaks
LP
,
Revenue
,
144A,
2021
A
,
4.2
%
,
12/01/39
................................
750,000
698,302
1,633,530
Texas
0.5%
b
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
600,000
556,610
b
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
A-2
,
5
%
,
12/01/52
............
800,000
802,580
1,359,190
Washington
0.2%
b
Washington
State
Housing
Finance
Commission
,
Madison
at
Rivers
Edge
Apartments
LLC
,
Revenue
,
144A,
2021
A
,
3.65
%
,
1/01/37
............................
500,000
467,747
Wisconsin
0.9%
b
Public
Finance
Authority
,
Revenue,
144A,
2022,
B-1,
4%,
12/28/44
................................
500,000
481,757
Affordable
Housing
Preservation
Corp.
(The),
Revenue,
144A,
2021,
5.25%,
12/01/22
.......................................................
1,700,000
1,692,179
2,173,936
U.S.
Territories
1.4%
Guam
0.5%
Guam
Government
Waterworks
Authority
,
Revenue
,
2020
A
,
5
%
,
1/01/50
.........
1,000,000
1,168,753
Puerto
Rico
0.9%
Puerto
Rico
Electric
Power
Authority
,
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/32
....................
500,000
529,491
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/34
....................
1,000,000
1,060,346
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue
,
L
,
Refunding
,
NATL
Insured
,
5.25
%
,
7/01/35
.............................................
530,000
560,711
2,150,548
Total
U.S.
Territories
....................................................................
3,319,301
Total
Municipal
Bonds
(Cost
$230,508,080)
.....................................
237,951,465
a
a
a
a
a
Total
Investments
(Cost
$230,508,080)
96.8%
...................................
$237,951,465
Other
Assets,
less
Liabilities
3.2%
.............................................
7,772,848
Net
Assets
100.0%
...........................................................
$245,724,313
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Alabama
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
55
See
Abbreviations
on
page
149.
a
The
maturity
date
shown
represents
the
mandatory
put
date.
b
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
February
28,
2022,
the
aggregate
value
of
these
securities
was
$6,643,881,
representing
2.7%
of
net
assets.
c
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Georgia
Tax-Free
Income
Fund
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
56
a
Year
Ended
February
28,
Year
Ended
February
28,
2019
b
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
................................
$11.91
$12.19
$11.59
$11.57
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.26
0.30
0.32
0.17
Net
realized
and
unrealized
gains
(losses)
........................
(0.34)
(0.29)
0.63
0.02
Total
from
investment
operations
.................................
(0.08)
0.01
0.95
0.19
Less
distributions
from:
Net
investment
income
.......................................
(0.26)
(0.29)
(0.35)
(0.17)
Net
asset
value,
end
of
year
....................................
$11.57
$11.91
$12.19
$11.59
Total
return
e
................................................
(0.71)%
0.14%
8.27%
1.70%
Ratios
to
average
net
assets
f
Expenses
g
.................................................
0.86%
0.85%
0.86%
0.87%
Net
investment
income
........................................
2.20%
2.48%
2.76%
3.10%
Supplemental
data
Net
assets,
end
of
year
(000’s)
..................................
$92,129
$77,256
$54,945
$19,705
Portfolio
turnover
rate
.........................................
22.60%
16.89%
13.23%
11.78%
a
For
the
year
ended
February
29.
b
For
the
period
September
10,
2018
(effective
date)
to
February
28,
2019.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Georgia
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
57
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.91
$12.19
$11.59
$11.65
$11.99
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.28
0.32
0.35
0.38
0.39
Net
realized
and
unrealized
gains
(losses)
...........
(0.34)
(0.29)
0.61
(0.06)
(0.33)
Total
from
investment
operations
....................
(0.06)
0.03
0.96
0.32
0.06
Less
distributions
from:
Net
investment
income
..........................
(0.28)
(0.31)
(0.36)
(0.38)
(0.40)
Net
asset
value,
end
of
year
.......................
$11.57
$11.91
$12.19
$11.59
$11.65
Total
return
d
...................................
(0.56)%
0.29%
8.44%
2.83%
0.46%
Ratios
to
average
net
assets
Expenses
.....................................
0.71%
e
0.71%
e
0.71%
e
0.72%
e
0.69%
f
Net
investment
income
...........................
2.36%
2.66%
2.91%
3.25%
3.25%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$249,763
$274,232
$309,436
$313,940
$363,390
Portfolio
turnover
rate
............................
22.60%
16.89%
13.23%
11.78%
9.33%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Georgia
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
58
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$12.09
$12.38
$11.77
$11.83
$12.16
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.22
0.25
0.29
0.32
0.33
Net
realized
and
unrealized
gains
(losses)
...........
(0.35)
(0.29)
0.62
(0.06)
(0.33)
Total
from
investment
operations
....................
(0.13)
(0.04)
0.91
0.26
—
Less
distributions
from:
Net
investment
income
..........................
(0.21)
(0.25)
(0.30)
(0.32)
(0.33)
Net
asset
value,
end
of
year
.......................
$11.75
$12.09
$12.38
$11.77
$11.83
Total
return
d
...................................
(1.10)%
(0.34)%
7.84%
2.22%
(0.02)%
Ratios
to
average
net
assets
Expenses
.....................................
1.25%
e
1.25%
e
1.26%
e
1.27%
e
1.24%
f
Net
investment
income
...........................
1.79%
2.08%
2.36%
2.70%
2.70%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$28,904
$45,512
$62,426
$72,542
$109,722
Portfolio
turnover
rate
............................
22.60%
16.89%
13.23%
11.78%
9.33%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Georgia
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
59
a
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2022
2021
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.91
$12.20
$11.59
$11.66
$11.94
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.30
0.33
0.36
0.39
0.24
Net
realized
and
unrealized
gains
(losses)
...........
(0.34)
(0.29)
0.63
(0.06)
(0.29)
Total
from
investment
operations
....................
(0.04)
0.04
0.99
0.33
(0.05)
Less
distributions
from:
Net
investment
income
..........................
(0.30)
(0.33)
(0.38)
(0.40)
(0.23)
Net
asset
value,
end
of
year
.......................
$11.57
$11.91
$12.20
$11.59
$11.66
Total
return
e
...................................
(0.42)%
0.35%
8.67%
2.86%
(0.40)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
......
0.57%
0.58%
0.59%
0.59%
4.47%
Expenses
net
of
waiver
and
payments
by
affiliates
.......
0.57%
g,h
0.56%
g
0.57%
g
0.57%
g
0.55%
Net
investment
income
...........................
2.49%
2.73%
3.05%
3.40%
3.39%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$17,047
$13,813
$4,981
$3,786
$5
Portfolio
turnover
rate
............................
22.60%
16.89%
13.23%
11.78%
9.33%
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Georgia
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
60
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.92
$12.20
$11.59
$11.66
$11.99
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.29
0.33
0.36
0.39
0.40
Net
realized
and
unrealized
gains
(losses)
...........
(0.35)
(0.29)
0.63
(0.07)
(0.32)
Total
from
investment
operations
....................
(0.06)
0.04
0.99
0.32
0.08
Less
distributions
from:
Net
investment
income
..........................
(0.29)
(0.32)
(0.38)
(0.39)
(0.41)
Net
asset
value,
end
of
year
.......................
$11.57
$11.92
$12.20
$11.59
$11.66
Total
return
....................................
(0.46)%
0.31%
8.63%
2.83%
0.64%
Ratios
to
average
net
assets
Expenses
.....................................
0.61%
d
0.61%
d
0.61%
d
0.62%
d
0.59%
e
Net
investment
income
...........................
2.46%
2.74%
3.01%
3.35%
3.35%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$72,069
$68,009
$53,789
$40,142
$35,389
Portfolio
turnover
rate
............................
22.60
%
16.89%
13.23%
11.78%
9.33%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments,
February
28,
2022
Franklin
Georgia
Tax-Free
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
61
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
98.7%
California
0.3%
California
Municipal
Finance
Authority
,
Revenue
,
2022
A-1
,
4.25
%
,
12/01/37
.......
$
1,300,000
$
1,304,386
Florida
0.7%
Capital
Trust
Agency,
Inc.
,
Kingdom
Development
Obligated
Group,
Revenue,
2021
A-1,
3.75%,
12/01/36
....
2,592,000
2,542,882
a
SHI
-
Lake
Osborne
LLC,
Revenue,
144A,
2021
A-1,
3.68%,
1/01/57
...........
750,000
671,375
3,214,257
Georgia
91.2%
Athens
Housing
Authority
,
UGAREF
East
Campus
Housing
Phase
II
LLC,
Revenue,
2017,
Refunding,
5%,
6/15/36
........................................................
2,390,000
2,778,393
UGAREF
East
Campus
Housing
Phase
II
LLC,
Revenue,
2017,
Refunding,
4%,
6/15/40
........................................................
5,000,000
5,443,574
Atlanta
&
Fulton
County
Recreation
Authority
,
City
of
Atlanta
Park
Tax
,
Revenue
,
2014
A
,
Refunding
,
5
%
,
12/01/35
..........................................
3,530,000
3,866,537
Atlanta
Development
Authority
(The)
,
City
of
Atlanta
Hotel
Motel
Tax,
Revenue,
2015
A-1,
5.25%,
7/01/40
............
7,750,000
8,665,897
City
of
Atlanta
Hotel
Motel
Tax,
Revenue,
2015
A-1,
5.25%,
7/01/44
............
3,000,000
3,350,012
Piedmont/Ellis
LLC,
Revenue,
2013,
Pre-Refunded,
5%,
9/01/32
..............
1,000,000
1,056,845
Tuff
Yamacraw
LLC,
Revenue,
2005
A,
Refunding,
AMBAC
Insured,
5%,
1/01/26
..
2,555,000
2,784,091
Auburn
Urban
Redevelopment
Agency
,
City
of
Auburn,
Revenue,
2020,
BAM
Insured,
4%,
10/01/45
..................
1,000,000
1,129,710
City
of
Auburn,
Revenue,
2020,
BAM
Insured,
4%,
10/01/50
..................
1,000,000
1,123,248
Bainbridge
Public
Facilities
Authority
,
County
of
Decatur
,
Revenue
,
2018
,
AGMC
Insured
,
4
%
,
3/01/43
...............................................
4,000,000
4,409,172
b
Baldwin
County
Hospital
Authority
,
Oconee
Regional
Medical
Center
Obligated
Group,
Revenue,
1998,
5.25%,
12/01/22
2,500,000
25
Oconee
Regional
Medical
Center
Obligated
Group,
Revenue,
1998,
5.375%,
12/01/28
.......................................................
2,000,000
20
Bleckley
County
School
District
,
GO
,
2020
,
5
%
,
10/01/42
.....................
2,055,000
2,531,601
Brookhaven
Development
Authority
,
Children's
Healthcare
of
Atlanta
Obligated
Group
,
Revenue
,
2019
A
,
4
%
,
7/01/49
........................................
6,000,000
6,594,122
Carroll
City-County
Hospital
Authority
,
Tanner
Medical
Center,
Inc.
Obligated
Group,
Revenue,
2015,
5%,
7/01/41
......
2,000,000
2,211,119
Tanner
Medical
Center,
Inc.
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
7/01/45
........................................................
1,250,000
1,422,045
Tanner
Medical
Center,
Inc.
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
7/01/50
........................................................
1,500,000
1,690,852
Carrollton
Payroll
Development
Authority
,
UWG
Athletic
Complex
LLC
,
Revenue
,
2014
,
Refunding
,
AGMC
Insured
,
5
%
,
6/15/37
.................................
3,140,000
3,465,330
City
of
Atlanta
,
Tax
Allocation,
2016
B,
Refunding,
5%,
1/01/31
...........................
1,780,000
2,033,023
Airport
Passenger
Facility
Charge,
Revenue,
Sub.
Lien,
2014
A,
Refunding,
5%,
1/01/33
........................................................
4,005,000
4,269,458
Airport
Passenger
Facility
Charge,
Revenue,
Sub.
Lien,
2014
A,
Refunding,
5%,
1/01/34
........................................................
3,250,000
3,462,161
Airport
Passenger
Facility
Charge,
Revenue,
Sub.
Lien,
2019
D,
4%,
7/01/36
.....
4,500,000
4,953,670
Department
of
Aviation,
Revenue,
2021
B,
Refunding,
5%,
7/01/37
.............
1,480,000
1,853,672
Department
of
Aviation,
Revenue,
2021
C,
Refunding,
5%,
7/01/37
.............
1,500,000
1,827,402
Water
&
Wastewater,
Revenue,
2001
A,
AGMC,
NATL
RE
Insured,
5.5%,
11/01/27
.
5,000,000
5,747,762
Water
&
Wastewater,
Revenue,
2015,
Pre-Refunded,
5%,
11/01/43
............
10,000,000
11,135,507
Water
&
Wastewater,
Revenue,
2018
B,
Refunding,
5%,
11/01/47
..............
5,000,000
5,876,013
Water
&
Wastewater,
Revenue,
2019,
Refunding,
4%,
11/01/38
...............
1,450,000
1,655,789
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Georgia
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
62
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Georgia
(continued)
City
of
Baldwin
,
Water
&
Sewerage
,
Revenue
,
2021
,
Refunding
,
BAM
Insured
,
3
%
,
6/01/46
.........................................................
$
1,835,000
$
1,902,434
City
of
Buford
,
GO
,
2017
C
,
Pre-Refunded
,
4
%
,
1/01/43
......................
5,000,000
5,598,426
City
of
Cartersville
,
Water
&
Sewer
,
Revenue
,
2018
,
Refunding
,
5
%
,
6/01/48
.......
4,000,000
4,654,866
City
of
Columbus
,
Water
&
Sewerage
,
Revenue
,
2014
A
,
Pre-Refunded
,
5
%
,
5/01/33
1,030,000
1,114,064
City
of
Dalton
,
GO
,
2018
,
5
%
,
2/01/48
....................................
3,000,000
3,526,678
City
of
Monroe
,
Combined
Utility
,
Revenue
,
2020
,
AGMC
Insured
,
4
%
,
12/01/50
....
1,500,000
1,689,342
City
of
Warner
Robins
,
Water
&
Sewerage
,
Revenue
,
2020
,
Refunding
,
4
%
,
7/01/45
.
1,000,000
1,126,272
Cobb
County
Kennestone
Hospital
Authority
,
WellStar
Health
System
Obligated
Group,
Revenue,
2020
B,
Refunding,
5%,
4/01/38
375,000
449,770
WellStar
Health
System
Obligated
Group,
Revenue,
2020
B,
Refunding,
4%,
4/01/39
425,000
472,719
WellStar
Health
System
Obligated
Group,
Revenue,
2020
B,
Refunding,
5%,
4/01/40
400,000
478,179
WellStar
Health
System
Obligated
Group,
Revenue,
2020
B,
Refunding,
4%,
4/01/41
375,000
415,857
c
WellStar
Health
System
Obligated
Group,
Revenue,
2022
A,
4%,
4/01/52
........
3,100,000
3,420,922
County
of
DeKalb
,
Water
&
Sewerage,
Revenue,
2006
B,
Refunding,
AGMC
Insured,
5%,
10/01/35
..
10,655,000
12,296,728
Water
&
Sewerage,
Revenue,
2011
A,
5.25%,
10/01/41
.....................
4,225,000
4,273,082
County
of
Fulton
,
Water
&
Sewerage
,
Revenue
,
2020
A
,
3
%
,
1/01/45
.............
5,000,000
5,033,392
County
of
Oconee
,
GO
,
2021
,
4
%
,
1/01/32
................................
1,000,000
1,166,390
County
of
Rockdale
,
Stormwater
System,
Revenue,
2021,
4%,
7/01/36
.........................
500,000
578,424
Stormwater
System,
Revenue,
2021,
4%,
7/01/41
.........................
500,000
573,162
Coweta
County
Water
&
Sewage
Authority
,
Revenue,
2019,
Pre-Refunded,
4%,
6/01/39
..............................
1,500,000
1,739,313
Revenue,
2021
B,
3%,
6/01/43
........................................
820,000
833,821
Revenue,
2021
B,
3%,
6/01/46
........................................
1,000,000
1,010,379
Dalton
Whitfield
County
Joint
Development
Authority
,
Hamilton
Health
Care
System
Obligated
Group
,
Revenue
,
2017
,
4
%
,
8/15/41
............................
3,000,000
3,288,809
DeKalb
Newton
&
Gwinnett
Counties
Joint
Development
Authority
,
GGCF
Athletic
Fields
LLC
,
Revenue
,
2012
A
,
AGMC
Insured
,
5
%
,
7/01/39
..................
5,000,000
5,067,957
Development
Authority
for
Fulton
County
,
Georgia
Tech
Facilities,
Inc.,
Revenue,
2018,
4%,
3/01/43
...................
2,000,000
2,210,512
Piedmont
Healthcare,
Inc.
Obligated
Group,
Revenue,
2014
A,
Refunding,
5%,
7/01/44
........................................................
10,000,000
10,766,112
Piedmont
Healthcare,
Inc.
Obligated
Group,
Revenue,
2019
A,
4%,
7/01/49
......
5,000,000
5,439,190
Tuff/Atlanta
Housing
LLC,
Revenue,
2022,
Refunding,
5%,
9/01/29
.............
1,000,000
1,211,791
Tuff/Atlanta
Housing
LLC,
Revenue,
2022,
Refunding,
5%,
9/01/30
.............
1,030,000
1,271,516
Tuff/Atlanta
Housing
LLC,
Revenue,
2022,
Refunding,
5%,
9/01/31
.............
1,235,000
1,547,978
Tuff/Atlanta
Housing
LLC,
Revenue,
2022,
Refunding,
5%,
9/01/32
.............
1,350,000
1,716,712
WellStar
Health
System
Obligated
Group,
Revenue,
2017,
5%,
4/01/47
.........
1,000,000
1,133,715
WellStar
Health
System
Obligated
Group,
Revenue,
2020
A,
4%,
4/01/50
........
4,000,000
4,377,682
Development
Authority
of
Burke
County
(The)
,
Oglethorpe
Power
Corp.
,
Revenue
,
2017
,
Refunding
,
4.125
%
,
11/01/45
....................................
6,000,000
6,566,087
Development
Authority
of
Cobb
County
(The)
,
Georgia
Tech
Cobb
Research
Campus
LLC,
Revenue,
2017
A,
4%,
6/01/42
......
1,600,000
1,763,667
Kennesaw
State
University
Real
Estate
Obligated
Group
2015
ABC,
Revenue,
Senior
Lien,
2015
A,
Refunding,
5%,
7/15/38
.................................
2,000,000
2,222,600
KSU
2020
Housing
Real
Estate
Foundation
LLC,
Revenue,
2020,
4%,
7/15/52
....
5,720,000
6,336,121
KSU
SRAC
Real
Estate
Foundation
LLC,
Revenue,
2013,
5%,
7/15/38
..........
2,500,000
2,536,245
KSU
University
II
Real
Estate
Foundation
LLC,
Revenue,
2021,
Refunding,
4%,
7/15/34
........................................................
1,000,000
1,153,581
University
System
of
Georgia,
Revenue,
2020
C,
4%,
7/15/52
................
2,000,000
2,191,734
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Georgia
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
63
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Georgia
(continued)
Development
Authority
of
Gwinnett
County
,
Gwinnett
County
School
District
,
COP
,
2006
,
NATL
Insured
,
5.25
%
,
1/01/24
...................................
$
2,000,000
$
2,149,011
a
Development
Authority
of
Rockdale
County
,
AHPC
Terraces
at
Fieldstone
LLC
,
Revenue
,
144A,
2021
A-1
,
3.5
%
,
12/01/36
...............................
4,825,000
4,506,776
Etowah
Water
&
Sewer
Authority
,
Revenue,
2019,
Refunding,
BAM
Insured,
4%,
3/01/36
......................
1,450,000
1,629,296
Revenue,
2019,
Refunding,
BAM
Insured,
3%,
3/01/44
......................
1,250,000
1,255,843
Floyd
County
Hospital
Authority
,
Floyd
Obligated
Group
,
Revenue
,
2016
,
Pre-
Refunded
,
4
%
,
7/01/43
.............................................
7,735,000
8,543,268
Forsyth
County
School
District
,
GO
,
2018
,
5
%
,
2/01/38
.......................
2,650,000
3,155,852
Fulton
County
Residential
Care
Facilities
for
the
Elderly
Authority
,
Lenbrook
Square
Foundation
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
5
%
,
7/01/42
..........
6,000,000
6,319,191
Gainesville
&
Hall
County
Hospital
Authority
,
Northeast
Georgia
Health
System
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
2/15/42
....................................................
7,000,000
7,998,203
Northeast
Georgia
Health
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
2/15/45
....................................................
5,000,000
5,464,713
Northeast
Georgia
Health
System
Obligated
Group,
Revenue,
2021
A,
4%,
2/15/46
5,000,000
5,484,178
Gainesville
School
District
,
GO
,
2020
,
4
%
,
11/01/42
.........................
1,000,000
1,143,827
Georgia
Higher
Education
Facilities
Authority
,
USG
Real
Estate
Foundation
III
LLC
,
Revenue
,
2020
,
Refunding
,
4
%
,
6/15/41
.................................
2,305,000
2,593,076
Georgia
Housing
&
Finance
Authority
,
Revenue,
2013
A,
3.8%,
12/01/37
.....................................
3,570,000
3,606,230
Revenue,
2018
A,
3.85%,
12/01/38
....................................
3,165,000
3,260,516
Revenue,
2018
A,
3.95%,
12/01/43
....................................
1,210,000
1,241,787
Revenue,
2019
A,
Refunding,
3.7%,
6/01/49
..............................
4,765,000
4,955,730
Georgia
Ports
Authority
,
Revenue
,
2021
,
4
%
,
7/01/51
........................
3,250,000
3,681,835
Glynn-Brunswick
Memorial
Hospital
Authority
,
Southeast
Georgia
Health
System
Obligated
Group
,
Revenue
,
2017
,
5
%
,
8/01/47
............................
5,000,000
5,716,796
Gwinnett
County
School
District
,
GO,
2019,
5%,
2/01/41
.............................................
3,000,000
3,618,792
GO,
2021,
4%,
2/01/37
.............................................
5,000,000
5,862,807
Henry
County
School
District
,
GO
,
2016
,
Pre-Refunded
,
4
%
,
8/01/33
.............
5,000,000
5,553,782
Hogansville
Ga
Combined
Public
Utility
System
,
Revenue
,
1993
,
Refunding
,
AGMC
Insured
,
6
%
,
10/01/23
..............................................
980,000
1,054,009
Lawrenceville
Building
Authority
,
City
of
Lawrenceville
,
Revenue
,
2015
,
5
%
,
4/01/35
.
2,270,000
2,502,699
Macon
Water
Authority
,
Revenue
,
2015
,
4
%
,
10/01/35
........................
2,810,000
3,112,474
Main
Street
Natural
Gas,
Inc.
,
Revenue,
2007
A,
5.5%,
9/15/27
......................................
5,000,000
5,892,542
Revenue,
2019
A,
5%,
5/15/38
........................................
2,500,000
3,264,491
a,d
Revenue,
144A,
2022
C,
Mandatory
Put,
4%,
11/01/27
......................
5,000,000
5,431,783
Metropolitan
Atlanta
Rapid
Transit
Authority
,
Revenue
,
2015
B
,
5
%
,
7/01/45
........
5,000,000
5,687,364
Monroe
County
Public
Facilities
Authority
,
County
of
Monroe
,
Revenue
,
2020
,
4
%
,
6/01/42
.........................................................
1,000,000
1,123,840
Moultrie-Colquitt
Counties
Development
Authority
,
Philadelphia
College
of
Osteopathic
Medicine
Obligated
Group
,
Revenue
,
2018
,
5
%
,
12/01/43
...................
4,815,000
5,685,170
Municipal
Electric
Authority
of
Georgia
,
Revenue,
2019
A,
AGMC
Insured,
4%,
1/01/44
............................
5,000,000
5,437,808
Revenue,
2020
A,
Refunding,
5%,
1/01/50
...............................
3,500,000
4,158,309
Revenue,
2021
A,
Refunding,
4%,
1/01/46
...............................
330,000
355,229
Revenue,
2021
A,
Refunding,
4%,
1/01/51
...............................
425,000
455,628
Revenue,
2021
A,
Refunding,
5%,
1/01/56
...............................
750,000
864,041
Revenue,
GG,
Refunding,
5%,
1/01/39
..................................
7,000,000
7,216,150
Municipal
Gas
Authority
of
Georgia
,
Revenue,
S,
Refunding,
5%,
10/01/25
..................................
2,500,000
2,553,869
Revenue,
S,
Refunding,
5%,
10/01/26
..................................
2,500,000
2,554,733
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Georgia
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
64
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Georgia
(continued)
Pierce
County
School
District
,
GO
,
2017
,
4
%
,
1/01/43
........................
$
3,725,000
$
4,105,464
Private
Colleges
&
Universities
Authority
,
Corp.
of
Mercer
University
(The),
Revenue,
2021,
Refunding,
4%,
10/01/50
......
5,400,000
5,841,147
Emory
University,
Revenue,
2013
A,
5%,
10/01/43
.........................
5,000,000
5,290,600
Emory
University,
Revenue,
2019
B,
Refunding,
5%,
9/01/48
.................
4,000,000
4,809,438
Pulaski
County
School
District
,
GO
,
2020
,
4
%
,
10/01/42
......................
1,000,000
1,140,895
Richmond
County
Hospital
Authority
,
University
Health
Services
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
4
%
,
1/01/35
.................................
8,000,000
8,612,642
Sandy
Springs
Public
Facilities
Authority
,
City
of
Sandy
Springs
,
Revenue
,
2015
,
Pre-
Refunded
,
5
%
,
5/01/41
.............................................
3,000,000
3,436,745
Savannah
Hospital
Authority
,
St.
Joseph's/Candler
Health
System
Obligated
Group
,
Revenue
,
2019
A
,
Refunding
,
4
%
,
7/01/43
...............................
10,000,000
11,047,004
Sinclair
Water
Authority
,
Revenue
,
2019
,
Refunding
,
AGMC
Insured
,
5
%
,
4/01/48
...
2,000,000
2,367,890
State
of
Georgia
,
GO,
2018
A,
4%,
7/01/36
............................................
5,000,000
5,678,781
GO,
2021
A,
Refunding,
4%,
7/01/34
...................................
6,500,000
7,705,847
Worth
County
School
District
,
GO
,
2017
,
5
%
,
12/01/42
.......................
5,000,000
5,813,972
419,435,352
Illinois
0.8%
State
of
Illinois
,
GO,
2021
A,
5%,
3/01/37
............................................
250,000
294,229
GO,
2021
B,
4%,
12/01/38
...........................................
3,000,000
3,262,392
3,556,621
New
Jersey
0.3%
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue
,
2020
AA
,
5
%
,
6/15/37
...
1,220,000
1,438,560
New
York
0.7%
Metropolitan
Transportation
Authority
,
Revenue
,
2021
A-1
,
4
%
,
11/15/46
..........
3,000,000
3,238,505
South
Carolina
0.5%
South
Carolina
Jobs-Economic
Development
Authority
,
a
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
900,000
842,175
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
900,000
841,236
a
South
Carolina
State
Housing
Finance
&
Development
Authority
,
Garden
Oaks
LP
,
Revenue
,
144A,
2021
A
,
4.2
%
,
12/01/39
................................
500,000
465,535
2,148,946
Texas
0.6%
a
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
1,200,000
1,113,220
a
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
A-2
,
5
%
,
12/01/52
............
1,500,000
1,504,837
2,618,057
Washington
0.2%
a
Washington
State
Housing
Finance
Commission
,
Madison
at
Rivers
Edge
Apartments
LLC
,
Revenue
,
144A,
2021
A
,
3.65
%
,
1/01/37
............................
900,000
841,944
Wisconsin
1.1%
a
Public
Finance
Authority
,
Revenue,
144A,
2022,
B-1,
4%,
12/28/44
................................
900,000
867,163
Affordable
Housing
Preservation
Corp.
(The),
Revenue,
144A,
2021,
5.25%,
12/01/22
.......................................................
3,100,000
3,085,738
AL-FL
Portfolio
Obligated
Group,
Revenue,
144A,
2021
A,
3.4%,
12/01/36
.......
1,500,000
1,398,812
5,351,713
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Georgia
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
65
s
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
U.S.
Territories
2.3%
Puerto
Rico
2.3%
Puerto
Rico
Electric
Power
Authority
,
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/32
....................
$
560,000
$
593,030
b
Revenue,
XX-RSA-1,
5.25%,
7/01/40
...................................
2,270,000
2,352,288
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue,
CC,
Refunding,
AGMC
Insured,
5.25%,
7/01/32
...................
4,800,000
5,028,911
Revenue,
L,
Refunding,
NATL
Insured,
5.25%,
7/01/35
......................
1,450,000
1,534,021
Revenue,
L,
Refunding,
AGMC
Insured,
5.25%,
7/01/41
.....................
1,100,000
1,144,319
10,652,569
Total
U.S.
Territories
....................................................................
10,652,569
Total
Municipal
Bonds
(Cost
$444,520,037)
.....................................
453,800,910
a
a
a
a
Short
Term
Investments
0.1%
Municipal
Bonds
0.1%
Georgia
0.1%
e
Athens-Clarke
County
Unified
Government
Development
Authority
,
University
of
Georgia
Athletic
Association,
Inc.
,
Revenue
,
2005
B
,
LOC
Wells
Fargo
Bank
NA
,
Daily
VRDN
and
Put
,
0.09
%
,
7/01/35
...................................
400,000
400,000
Total
Municipal
Bonds
(Cost
$400,000)
.........................................
400,000
Total
Short
Term
Investments
(Cost
$400,000
)
..................................
400,000
a
Total
Investments
(Cost
$444,920,037)
98.8%
...................................
$454,200,910
Other
Assets,
less
Liabilities
1.2%
.............................................
5,710,672
Net
Assets
100.0%
...........................................................
$459,911,582
See
Abbreviations
on
page
149
.
a
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
February
28,
2022,
the
aggregate
value
of
these
securities
was
$20,729,358,
representing
4.5%
of
net
assets.
b
See
Note
7
regarding
defaulted
securities.
c
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).
d
The
maturity
date
shown
represents
the
mandatory
put
date.
e
Variable
rate
demand
notes
(VRDNs)
are
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.
Unless
otherwise
noted,
the
coupon
rate
is
determined
based
on
factors
including
supply
and
demand,
underlying
credit,
tax
treatment,
and
current
short
term
rates.
The
coupon
rate
shown
represents
the
rate
at
period
end.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Louisiana
Tax-Free
Income
Fund
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Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
66
a
Year
Ended
February
28,
Year
Ended
February
28,
2019
b
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
................................
$11.28
$11.55
$10.93
$10.85
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.24
0.28
0.30
0.16
Net
realized
and
unrealized
gains
(losses)
........................
(0.25)
(0.27)
0.64
0.08
Total
from
investment
operations
.................................
(0.01)
0.01
0.94
0.24
Less
distributions
from:
Net
investment
income
.......................................
(0.24)
(0.28)
(0.32)
(0.16)
Net
asset
value,
end
of
year
....................................
$11.03
$11.28
$11.55
$10.93
Total
return
e
................................................
(0.17)%
0.09%
8.68%
2.22%
Ratios
to
average
net
assets
f
Expenses
g
.................................................
0.87%
0.87%
0.86%
0.88%
Net
investment
income
........................................
2.07%
2.49%
2.70%
3.06%
Supplemental
data
Net
assets,
end
of
year
(000’s)
..................................
$69,773
$56,810
$48,032
$18,110
Portfolio
turnover
rate
.........................................
16.61%
22.66%
4.83%
9.46%
a
For
the
year
ended
February
29.
b
For
the
period
September
10,
2018
(effective
date)
to
February
28,
2019.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Louisiana
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
67
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.28
$11.55
$10.92
$10.90
$11.15
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.25
0.30
0.32
0.35
0.36
Net
realized
and
unrealized
gains
(losses)
...........
(0.25)
(0.28)
0.64
0.02
(0.24)
Total
from
investment
operations
....................
—
0.02
0.96
0.37
0.12
Less
distributions
from:
Net
investment
income
..........................
(0.25)
(0.29)
(0.33)
(0.35)
(0.37)
Net
asset
value,
end
of
year
.......................
$11.03
$11.28
$11.55
$10.92
$10.90
Total
return
d
...................................
(0.02)%
0.24%
8.94%
3.45%
1.04%
Ratios
to
average
net
assets
Expenses
.....................................
0.72%
e
0.72%
e
0.71%
e
0.73%
e
0.70%
Net
investment
income
...........................
2.22%
2.66%
2.85%
3.21%
3.23%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$234,499
$250,576
$289,744
$284,259
$322,080
Portfolio
turnover
rate
............................
16.61%
22.66%
4.83%
9.46%
21.83%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Louisiana
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
68
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.46
$11.74
$11.10
$11.07
$11.32
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.19
0.24
0.26
0.29
0.30
Net
realized
and
unrealized
gains
(losses)
...........
(0.25)
(0.29)
0.65
0.03
(0.25)
Total
from
investment
operations
....................
(0.06)
(0.05)
0.91
0.32
0.05
Less
distributions
from:
Net
investment
income
..........................
(0.19)
(0.23)
(0.27)
(0.29)
(0.30)
Net
asset
value,
end
of
year
.......................
$11.21
$11.46
$11.74
$11.10
$11.07
Total
return
d
...................................
(0.57)%
(0.39)%
8.34%
2.92%
0.46%
Ratios
to
average
net
assets
Expenses
.....................................
1.26%
e
1.26%
e
1.26%
e
1.28%
e
1.25%
Net
investment
income
...........................
1.64%
2.08%
2.30%
2.66%
2.68%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$19,991
$29,441
$38,066
$42,188
$61,399
Portfolio
turnover
rate
............................
16.61%
22.66%
4.83%
9.46%
21.83%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Louisiana
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
69
a
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2022
2021
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.28
$11.55
$10.93
$10.90
$11.18
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.27
0.31
0.33
0.36
0.22
Net
realized
and
unrealized
gains
(losses)
...........
(0.25)
(0.27)
0.64
0.03
(0.28)
Total
from
investment
operations
....................
0.02
0.04
0.97
0.39
(0.06)
Less
distributions
from:
Net
investment
income
..........................
(0.27)
(0.31)
(0.35)
(0.36)
(0.22)
Net
asset
value,
end
of
year
.......................
$11.03
$11.28
$11.55
$10.93
$10.90
Total
return
e
...................................
0.12%
0.38%
8.99%
3.67%
(0.59)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
......
0.59%
0.60%
0.60%
0.61%
0.60%
Expenses
net
of
waiver
and
payments
by
affiliates
.......
0.58%
g
0.58%
g
0.58%
g
0.59%
g
0.57%
Net
investment
income
...........................
2.36%
2.78%
2.98%
3.35%
3.36%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$8,031
$6,076
$5,383
$3,865
$3,683
Portfolio
turnover
rate
............................
16.61%
22.66%
4.83%
9.46%
21.83%
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Louisiana
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
70
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.28
$11.55
$10.93
$10.90
$11.15
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.26
0.31
0.33
0.36
0.37
Net
realized
and
unrealized
gains
(losses)
...........
(0.24)
(0.28)
0.63
0.03
(0.24)
Total
from
investment
operations
....................
0.02
0.03
0.96
0.39
0.13
Less
distributions
from:
Net
investment
income
..........................
(0.27)
(0.30)
(0.34)
(0.36)
(0.38)
Net
asset
value,
end
of
year
.......................
$11.03
$11.28
$11.55
$10.93
$10.90
Total
return
....................................
0.08%
0.34%
8.95%
3.65%
1.14%
Ratios
to
average
net
assets
Expenses
.....................................
0.62%
d
0.62%
d
0.61%
d
0.63%
d
0.60%
Net
investment
income
...........................
2.32%
2.73%
2.95%
3.31%
3.33%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$42,264
$37,329
$27,945
$19,580
$14,091
Portfolio
turnover
rate
............................
16.61%
22.66%
4.83%
9.46%
21.83%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments,
February
28,
2022
Franklin
Louisiana
Tax-Free
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
71
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
96.5%
Florida
0.1%
a
Capital
Trust
Agency,
Inc.
,
SHI
-
Lake
Osborne
LLC
,
Revenue
,
144A,
2021
A-1
,
3.68
%
,
1/01/57
.........................................................
$
500,000
$
447,583
Georgia
0.3%
a
Development
Authority
of
Rockdale
County
,
AHPC
Terraces
at
Fieldstone
LLC
,
Revenue
,
144A,
2021
A-1
,
3.5
%
,
12/01/36
...............................
1,225,000
1,144,207
Louisiana
91.7%
Ascension
Parish
School
Board
,
GO
,
2020
,
4
%
,
3/01/40
......................
1,000,000
1,146,978
Caddo
Parish
Parishwide
School
District
,
GO
,
2021
,
AGMC
Insured
,
3
%
,
3/01/36
...
505,000
535,221
Calcasieu
Parish
Public
Trust
Authority
,
Cowboy
Facilities,
Inc.
,
Revenue
,
2011
,
Refunding
,
AGMC
Insured
,
5
%
,
5/01/29
.................................
2,050,000
2,064,936
Calcasieu
Parish
School
District
No.
23
,
GO,
2019,
BAM
Insured,
4%,
9/01/36
...................................
670,000
755,928
GO,
2019,
BAM
Insured,
4%,
9/01/37
...................................
600,000
674,382
GO,
2019,
BAM
Insured,
4%,
9/01/39
...................................
2,060,000
2,292,526
Calcasieu
Parish
School
District
No.
31
,
GO,
2018,
BAM
Insured,
5%,
3/01/36
...................................
1,000,000
1,174,237
GO,
2018,
BAM
Insured,
5%,
3/01/38
...................................
1,000,000
1,171,614
GO,
2019,
BAM
Insured,
4%,
3/01/37
...................................
1,000,000
1,134,359
GO,
2019,
BAM
Insured,
4%,
3/01/39
...................................
750,000
848,583
Central
Community
School
System
,
GO,
2020,
4%,
3/01/39
.............................................
1,125,000
1,287,916
GO,
2020,
4%,
3/01/40
.............................................
1,190,000
1,360,178
City
of
Bossier
City
,
Utilities
,
Revenue
,
2014
,
Pre-Refunded
,
5
%
,
10/01/37
........
5,280,000
5,786,822
City
of
Lafayette
,
Sales
&
Use
Tax,
Revenue,
2019
A,
5%,
5/01/44
..........................
4,350,000
5,189,434
Sales
&
Use
Tax,
Revenue,
2020
B,
4%,
3/01/45
..........................
5,000,000
5,643,512
City
of
New
Orleans
,
Sewerage
Service,
Revenue,
2020
B,
5%,
6/01/45
.........................
1,700,000
2,032,570
Sewerage
Service,
Revenue,
2020
B,
4%,
6/01/50
.........................
1,300,000
1,431,053
City
of
Ruston
,
Revenue
,
2016
,
AGMC
Insured
,
5
%
,
6/01/35
...................
1,085,000
1,226,623
City
of
Shreveport
,
Revenue,
2016,
Refunding,
BAM
Insured,
5%,
3/01/27
......................
1,500,000
1,733,298
Water
&
Sewer,
Revenue,
2016
B,
5%,
12/01/41
..........................
4,000,000
4,565,685
Water
&
Sewer,
Revenue,
2020
B,
Refunding,
3%,
12/01/50
..................
5,070,000
5,167,122
Consolidated
Government
of
the
City
of
Baton
Rouge
&
Parish
of
East
Baton
Rouge
,
Sales
Tax
,
Revenue
,
2020
,
Refunding
,
AGMC
Insured
,
5
%
,
8/01/30
............
2,000,000
2,474,220
East
Baton
Rouge
Sewerage
Commission
,
Revenue,
2014
B,
Pre-Refunded,
5%,
2/01/33
............................
1,000,000
1,105,342
Revenue,
2014
B,
Pre-Refunded,
5%,
2/01/39
............................
5,000,000
5,526,711
Revenue,
2019
A,
Refunding,
4%,
2/01/45
...............................
5,000,000
5,518,959
Revenue,
2020
A,
Refunding,
5%,
2/01/31
...............................
750,000
930,663
Greater
New
Orleans
Expressway
Commission
,
Revenue
,
2017
,
AGMC
Insured
,
5
%
,
11/01/47
........................................................
4,000,000
4,438,714
Jefferson
Sales
Tax
District
,
Revenue,
2017
B,
AGMC
Insured,
5%,
12/01/42
...........................
2,250,000
2,649,815
Revenue,
2019
B,
AGMC
Insured,
4%,
12/01/42
...........................
5,000,000
5,718,223
Lafayette
Consolidated
Government
,
GO,
2020,
Refunding,
3%,
3/01/34
.....................................
250,000
265,136
GO,
2020,
Refunding,
3%,
3/01/35
.....................................
200,000
211,677
Revenue,
2015,
Refunding,
AGMC
Insured,
5%,
11/01/28
...................
1,345,000
1,512,341
Revenue,
2015,
Refunding,
AGMC
Insured,
5%,
11/01/31
...................
2,400,000
2,694,034
Livingston
Parish
School
Board
,
Sales
&
Use
Tax,
Revenue,
2021
A,
Refunding,
4%,
5/01/30
.................
500,000
576,623
Sales
&
Use
Tax,
Revenue,
2021
A,
Refunding,
4%,
5/01/31
.................
1,300,000
1,519,139
Sales
&
Use
Tax,
Revenue,
2021
A,
Refunding,
4%,
5/01/32
.................
1,500,000
1,750,317
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Louisiana
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
72
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Louisiana
(continued)
Louisiana
Correctional
Facilities
Corp.
,
State
of
Louisiana
Office
of
Juvenile
Justice,
Revenue,
2021,
4%,
10/01/37
......
$
875,000
$
1,000,660
State
of
Louisiana
Office
of
Juvenile
Justice,
Revenue,
2021,
4%,
10/01/40
......
1,305,000
1,486,440
Louisiana
Housing
Corp.
,
Revenue,
2021
B,
GNMA
Insured,
2.05%,
6/01/36
.........................
625,000
603,487
Revenue,
2021
B,
GNMA
Insured,
2.2%,
6/01/41
..........................
1,995,000
1,921,133
Louisiana
Local
Government
Environmental
Facilities
&
Community
Development
Authority
,
a
City
of
New
Orleans,
Revenue,
144A,
2021,
4%,
11/01/46
...................
2,000,000
2,060,516
Cowboy
Facilities,
Inc.,
Revenue,
2011,
Refunding,
AGMC
Insured,
5%,
3/01/36
..
1,800,000
1,800,000
East
Ascension
Parish
Gravity
Drainage
District
No.
1,
Revenue,
2015,
Refunding,
BAM
Insured,
5%,
12/01/40
........................................
2,925,000
3,277,001
Entergy
Louisiana
LLC,
Revenue,
2021
A,
Refunding,
2%,
6/01/30
.............
1,500,000
1,441,807
Entergy
Louisiana
LLC,
Revenue,
2021
B,
Refunding,
2.5%,
4/01/36
...........
3,000,000
2,915,449
Innovative
Student
Facilities,
Inc.,
Revenue,
2016
A,
AGMC
Insured,
4%,
10/01/33
.
800,000
868,322
Innovative
Student
Facilities,
Inc.,
Revenue,
2016
A,
AGMC
Insured,
4%,
10/01/34
.
620,000
673,668
a
Invest
in
Americas
Veterans
Foundation
Louisiana,
Inc.,
Revenue,
144A,
2020
A,
Refunding,
4.25%,
12/01/50
........................................
8,000,000
8,035,377
Louisiana
Community
&
Technical
College
System,
Revenue,
2014,
Pre-Refunded,
5%,
10/01/32
...................................................
3,000,000
3,283,950
Louisiana
Community
&
Technical
College
System,
Revenue,
2014,
Pre-Refunded,
5%,
10/01/33
...................................................
5,000,000
5,473,249
a
Parish
of
Assumption,
Revenue,
144A,
2021,
3.875%,
11/01/45
...............
1,000,000
938,648
a
Parish
of
St.
Bernard,
Revenue,
144A,
2021,
4%,
11/01/45
...................
1,225,000
1,129,597
a
Parish
of
St.
Tammany
LA
GOMESA,
Revenue,
144A,
2020,
3.875%,
11/01/45
....
1,900,000
1,939,764
a
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A,
4%,
10/01/43
...
250,000
235,747
a
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A,
4.25%,
10/01/48
221,200
207,391
a
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A,
4.5%,
10/01/53
.
309,471
289,128
a
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A,
5%,
10/01/61
...
249,529
232,851
Ragin
Cajun
Facilities,
Inc.,
Revenue,
2017,
Refunding,
AGMC
Insured,
5%,
10/01/39
.......................................................
2,680,000
3,125,025
University
of
Louisiana
at
Lafayette,
Revenue,
2018,
AGMC
Insured,
5%,
10/01/48
3,500,000
4,073,505
University
of
Louisiana
System,
Revenue,
2019,
Refunding,
AGMC
Insured,
4%,
8/01/34
........................................................
1,000,000
1,123,076
University
of
Louisiana
System
Board
of
Supervisors,
Revenue,
2021,
Refunding,
AGMC
Insured,
4%,
10/01/39
.......................................
1,060,000
1,195,254
University
of
Louisiana
System
Board
of
Supervisors,
Revenue,
2021,
Refunding,
AGMC
Insured,
4%,
10/01/41
.......................................
500,000
562,433
University
of
Louisiana
System
Board
of
Supervisors,
Revenue,
2021,
Refunding,
AGMC
Insured,
4%,
10/01/43
.......................................
500,000
559,984
University
of
Louisiana
System
Board
of
Supervisors,
Revenue,
2022,
Refunding,
4%,
5/01/30
....................................................
1,020,000
1,142,781
University
of
Louisiana
System
Board
of
Supervisors,
Revenue,
2022,
Refunding,
4%,
5/01/31
....................................................
1,065,000
1,202,592
University
of
Louisiana
System
Board
of
Supervisors,
Revenue,
2022,
Refunding,
4%,
5/01/32
....................................................
1,100,000
1,239,365
University
of
Louisiana
System
Board
of
Supervisors,
Revenue,
2022,
Refunding,
4%,
5/01/33
....................................................
1,155,000
1,299,902
Woman's
Hospital
Foundation,
Revenue,
2017
A,
Refunding,
5%,
10/01/44
......
5,000,000
5,738,773
Louisiana
Public
Facilities
Authority
,
CHRISTUS
Health
Obligated
Group,
Revenue,
2018
E,
5%,
7/01/48
...........
5,000,000
5,872,202
Franciscan
Missionaries
of
Our
Lady
Health
System
Obligated
Group,
Revenue,
2015
A,
Pre-Refunded,
5%,
7/01/35
..................................
35,000
39,165
Franciscan
Missionaries
of
Our
Lady
Health
System
Obligated
Group,
Revenue,
2015
A,
5%,
7/01/35
..............................................
4,965,000
5,468,752
Louisiana
Children's
Medical
Center
Obligated
Group,
Revenue,
2015
A-1,
5%,
6/01/45
........................................................
10,000,000
11,604,334
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Louisiana
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
73
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Louisiana
(continued)
Louisiana
Public
Facilities
Authority,
(continued)
Louisiana
State
University
&
Agricultural
&
Mechanical
College
Auxiliary,
Revenue,
2016
A,
5%,
7/01/46
..............................................
$
6,500,000
$
7,129,207
Louisiana
State
University
&
Agricultural
&
Mechanical
College
Auxiliary,
Revenue,
2017,
5%,
7/01/52
................................................
2,310,000
2,573,261
Loyola
University
New
Orleans,
Revenue,
2021,
Refunding,
4%,
10/01/37
.......
2,020,000
2,206,886
Loyola
University
New
Orleans,
Revenue,
2021,
Refunding,
4%,
10/01/39
.......
3,460,000
3,761,473
Loyola
University
New
Orleans,
Revenue,
2021,
Refunding,
4%,
10/01/41
.......
2,850,000
3,087,669
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2002
B,
ETM,
5.75%,
5/15/23
2,500,000
2,639,622
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2016,
Pre-Refunded,
5%,
5/15/34
........................................................
30,000
34,144
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2016,
Pre-Refunded,
5%,
5/15/47
........................................................
20,000
22,762
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
5/15/46
10,000,000
11,377,908
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
5/15/49
........................................................
5,000,000
5,474,412
a
Provident
Group
-
HSC
Properties,
Inc.,
Revenue,
144A,
2020
A-1,
5.5%,
1/01/50
.
2,000,000
2,191,417
Roman
Catholic
Church
of
the
Archdiocese
of
New
Orleans,
Revenue,
2017,
Refunding,
5%,
7/01/37
............................................
3,750,000
3,600,000
Tulane
University,
Revenue,
2013
B,
5%,
10/01/37
.........................
5,540,000
5,744,106
Tulane
University,
Revenue,
2016
A,
Refunding,
5%,
12/15/41
................
3,000,000
3,429,056
Tulane
University,
Revenue,
2017
A,
Refunding,
4%,
12/15/50
................
2,000,000
2,163,787
Tulane
University,
Revenue,
2020
A,
Refunding,
5%,
4/01/45
.................
1,000,000
1,195,304
Louisiana
Stadium
&
Exposition
District
,
Revenue
,
2020
,
5
%
,
7/03/23
............
1,150,000
1,185,857
Louisiana
State
Transportation
Authority
,
Revenue
,
2013
A
,
Pre-Refunded
,
5
%
,
8/15/38
4,500,000
4,756,576
Louisiana
State
University
&
Agricultural
&
Mechanical
College
,
Auxiliary,
Revenue,
2014,
Pre-Refunded,
5%,
7/01/29
......................
1,000,000
1,086,208
Auxiliary,
Revenue,
2014,
Pre-Refunded,
5%,
7/01/30
......................
1,040,000
1,129,657
Auxiliary,
Revenue,
2014,
Pre-Refunded,
5%,
7/01/34
......................
1,000,000
1,086,208
Auxiliary,
Revenue,
2016
A,
Pre-Refunded,
5%,
7/01/40
.....................
4,500,000
5,178,632
Natchitoches
Parish
School
District
No.
9
,
GO
,
2018
,
AGMC
Insured
,
5
%
,
3/01/38
...
1,440,000
1,710,064
New
Orleans
Aviation
Board
,
Louis
Armstrong
New
Orleans
International
Airport
,
Revenue
,
2017
A
,
5
%
,
1/01/48
........................................
10,000,000
11,378,564
Parish
of
East
Baton
Rouge
Capital
Improvements
District
,
Revenue,
2019,
5%,
8/01/31
.........................................
1,000,000
1,231,509
Revenue,
2019,
4%,
8/01/44
.........................................
2,055,000
2,305,896
Revenue,
2019,
5%,
8/01/48
.........................................
2,500,000
2,970,404
Port
New
Orleans
Board
of
Commissioners
,
Revenue,
2018
A,
AGMC
Insured,
5%,
4/01/48
............................
2,750,000
3,153,593
Revenue,
2018
B,
Refunding,
AGMC
Insured,
5%,
4/01/43
...................
2,000,000
2,283,827
Revenue,
2020
D,
5%,
4/01/50
........................................
4,000,000
4,742,998
St.
Charles
Parish
School
Board
,
Revenue
,
2019
,
4
%
,
8/01/38
.................
805,000
906,924
St.
Tammany
Parish
Hospital
Service
District
No.
1
,
Revenue
,
2018
A
,
Refunding
,
5
%
,
7/01/48
.........................................................
5,500,000
6,422,293
State
of
Louisiana
,
GO,
2014
C,
Refunding,
5%,
8/01/27
...................................
7,200,000
7,828,529
GO,
2016
A,
5%,
9/01/36
............................................
5,000,000
5,716,626
GO,
2019
A,
5%,
3/01/37
............................................
3,000,000
3,637,846
GO,
2021
A,
5%,
3/01/40
............................................
5,000,000
6,242,623
Revenue,
2019
A,
5%,
9/01/30
........................................
2,000,000
2,428,040
Revenue,
2019
A,
5%,
9/01/31
........................................
4,750,000
5,759,215
Revenue,
2021,
5%,
9/01/33
.........................................
1,200,000
1,502,779
Gasoline
&
Fuels
Tax,
Revenue,
First
Lien,
2015
A,
Pre-Refunded,
5%,
5/01/41
...
3,000,000
3,340,652
Gasoline
&
Fuels
Tax,
Revenue,
Second
Lien,
2017
C,
Refunding,
5%,
5/01/40
...
5,000,000
5,854,670
Gasoline
&
Fuels
Tax,
Revenue,
Second
Lien,
2017
C,
Refunding,
5%,
5/01/45
...
10,000,000
11,662,445
Tangipahoa
Parish
Hospital
Service
District
No.
1
,
Revenue,
2021,
Refunding,
4%,
2/01/37
.................................
2,000,000
2,254,117
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Louisiana
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
74
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Louisiana
(continued)
Tangipahoa
Parish
Hospital
Service
District
No.
1,
(continued)
Revenue,
2021,
Refunding,
4%,
2/01/38
.................................
$
2,000,000
$
2,249,653
Terrebonne
Levee
&
Conservation
District
,
Revenue
,
2020
B
,
Refunding
,
4
%
,
6/01/41
1,000,000
1,096,116
Terrebonne
Parish
Consolidated
Government
,
Revenue,
2020
A,
4%,
3/01/35
........................................
1,015,000
1,157,204
Revenue,
2020
A,
4%,
3/01/41
........................................
2,660,000
3,006,827
West
Feliciana
Parish
Parishwide
Consolidated
School
District
No.
1
,
GO
,
2020
,
4
%
,
3/01/50
.........................................................
3,000,000
3,262,676
343,336,461
South
Carolina
0.3%
South
Carolina
Jobs-Economic
Development
Authority
,
a
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
700,000
655,026
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
700,000
654,294
1,309,320
Texas
0.6%
a
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
900,000
834,915
a
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
A-2
,
5
%
,
12/01/52
............
1,250,000
1,254,031
2,088,946
Washington
0.2%
a
Washington
State
Housing
Finance
Commission
,
Madison
at
Rivers
Edge
Apartments
LLC
,
Revenue
,
144A,
2021
A
,
3.65
%
,
1/01/37
............................
700,000
654,846
Wisconsin
1.2%
a
Public
Finance
Authority
,
Revenue,
144A,
2022,
B-1,
4%,
12/28/44
................................
800,000
770,812
Affordable
Housing
Preservation
Corp.
(The),
Revenue,
144A,
2021,
5.25%,
12/01/22
.......................................................
2,500,000
2,488,498
AL-FL
Portfolio
Obligated
Group,
Revenue,
144A,
2021
A,
3.4%,
12/01/36
.......
1,225,000
1,142,363
4,401,673
U.S.
Territories
2.1%
Puerto
Rico
2.1%
Puerto
Rico
Electric
Power
Authority
,
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/32
....................
500,000
529,491
b
Revenue,
WW-RSA-1,
5.25%,
7/01/33
..................................
855,000
885,994
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue
,
L
,
Refunding
,
NATL
Insured
,
5.25
%
,
7/01/35
.............................................
6,230,000
6,590,999
8,006,484
Total
U.S.
Territories
....................................................................
8,006,484
Total
Municipal
Bonds
(Cost
$351,629,946)
.....................................
361,389,520
a
a
a
a
a
Total
Investments
(Cost
$351,629,946)
96.5%
...................................
$361,389,520
Other
Assets,
less
Liabilities
3.5%
.............................................
13,167,803
Net
Assets
100.0%
...........................................................
$374,557,323
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Louisiana
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
75
See
Abbreviations
on
page
149
.
a
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
February
28,
2022,
the
aggregate
value
of
these
securities
was
$26,652,717,
representing
7.1%
of
net
assets.
b
See
Note
7
regarding
defaulted
securities.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Maryland
Tax-Free
Income
Fund
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
76
a
Year
Ended
February
28,
Year
Ended
February
28,
2019
b
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
................................
$10.97
$11.35
$10.80
$10.76
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.23
0.28
0.29
0.15
Net
realized
and
unrealized
gains
(losses)
........................
(0.26)
(0.38)
0.57
0.04
Total
from
investment
operations
.................................
(0.03)
(0.10)
0.86
0.19
Less
distributions
from:
Net
investment
income
.......................................
(0.23)
(0.28)
(0.31)
(0.15)
Net
asset
value,
end
of
year
....................................
$10.71
$10.97
$11.35
$10.80
Total
return
e
................................................
(0.30)%
(0.84)%
8.11%
1.84%
Ratios
to
average
net
assets
f
Expenses
g
.................................................
0.87%
0.87%
0.88%
0.88%
Net
investment
income
........................................
2.10%
2.55%
2.65%
2.95%
Supplemental
data
Net
assets,
end
of
year
(000’s)
..................................
$90,950
$78,374
$60,104
$26,572
Portfolio
turnover
rate
.........................................
15.00%
28.27%
7.50%
5.33%
a
For
the
year
ended
February
29.
b
For
the
period
September
10,
2018
(effective
date)
to
February
28,
2019.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Maryland
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
77
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.97
$11.36
$10.80
$10.76
$11.10
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.25
0.30
0.31
0.33
0.34
Net
realized
and
unrealized
gains
(losses)
...........
(0.26)
(0.39)
0.58
0.05
(0.32)
Total
from
investment
operations
....................
(0.01)
(0.09)
0.89
0.38
0.02
Less
distributions
from:
Net
investment
income
..........................
(0.25)
(0.30)
(0.33)
(0.34)
(0.36)
Net
asset
value,
end
of
year
.......................
$10.71
$10.97
$11.36
$10.80
$10.76
Total
return
d
...................................
(0.15)%
(0.69)%
8.27%
3.59%
0.13%
Ratios
to
average
net
assets
Expenses
.....................................
0.72%
e
0.72%
e
0.73%
e
0.73%
e
0.70%
Net
investment
income
...........................
2.25%
2.72%
2.80%
3.10%
3.07%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$214,264
$240,637
$270,309
$279,750
$319,120
Portfolio
turnover
rate
............................
15.00%
28.27%
7.50%
5.33%
11.36%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Maryland
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
78
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.20
$11.59
$11.02
$10.98
$11.31
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.19
0.24
0.25
0.28
0.28
Net
realized
and
unrealized
gains
(losses)
...........
(0.26)
(0.39)
0.59
0.04
(0.32)
Total
from
investment
operations
....................
(0.07)
(0.15)
0.84
0.32
(0.04)
Less
distributions
from:
Net
investment
income
..........................
(0.19)
(0.24)
(0.27)
(0.28)
(0.29)
Net
asset
value,
end
of
year
.......................
$10.94
$11.20
$11.59
$11.02
$10.98
Total
return
d
...................................
(0.70)%
(1.30)%
7.75%
2.94%
(0.34)%
Ratios
to
average
net
assets
Expenses
.....................................
1.26%
e
1.26%
e
1.28%
e
1.28%
e
1.25%
Net
investment
income
...........................
1.65%
2.13%
2.25%
2.55%
2.52%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$24,227
$34,896
$45,502
$56,323
$92,553
Portfolio
turnover
rate
............................
15.00%
28.27%
7.50%
5.33%
11.36%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Maryland
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
79
a
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2022
2021
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.99
$11.37
$10.82
$10.78
$11.05
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.26
0.31
0.32
0.35
0.21
Net
realized
and
unrealized
gains
(losses)
...........
(0.25)
(0.37)
0.58
0.04
(0.27)
Total
from
investment
operations
....................
0.01
(0.06)
0.90
0.39
(0.06)
Less
distributions
from:
Net
investment
income
..........................
(0.27)
(0.32)
(0.35)
(0.35)
(0.21)
Net
asset
value,
end
of
year
.......................
$10.73
$10.99
$11.37
$10.82
$10.78
Total
return
e
...................................
(—)%
f
(0.55)%
8.41%
3.71%
(0.58)%
Ratios
to
average
net
assets
g
Expenses
before
waiver
and
payments
by
affiliates
......
0.57%
0.59%
0.60%
0.61%
0.62%
Expenses
net
of
waiver
and
payments
by
affiliates
.......
0.57%
h,i
0.57%
h
0.58%
h
0.58%
h
0.56%
Net
investment
income
...........................
2.39%
2.81%
2.95%
3.25%
3.21%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$13,771
$8,033
$3,642
$1,753
$1,376
Portfolio
turnover
rate
............................
15.00%
28.27%
7.50%
5.33%
11.36%
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Rounds
to
less
than
0.01%.
g
Ratios
are
annualized
for
periods
less
than
one
year.
h
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
i
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Maryland
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
80
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.98
$11.37
$10.81
$10.77
$11.11
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.26
0.31
0.32
0.34
0.35
Net
realized
and
unrealized
gains
(losses)
...........
(0.25)
(0.39)
0.58
0.05
(0.32)
Total
from
investment
operations
....................
0.01
(0.08)
0.90
0.39
0.03
Less
distributions
from:
Net
investment
income
..........................
(0.26)
(0.31)
(0.34)
(0.35)
(0.37)
Net
asset
value,
end
of
year
.......................
$10.73
$10.98
$11.37
$10.81
$10.77
Total
return
....................................
0.04%
(0.68)%
8.47%
3.68%
0.22%
Ratios
to
average
net
assets
Expenses
.....................................
0.62%
d
0.62%
d
0.63%
d
0.63%
d
0.60%
Net
investment
income
...........................
2.35%
2.81%
2.90%
3.20%
3.17%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$55,284
$57,854
$54,079
$44,264
$40,532
Portfolio
turnover
rate
............................
15.00%
28.27%
7.50%
5.33%
11.36%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments,
February
28,
2022
Franklin
Maryland
Tax-Free
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
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financial
statements.
Annual
Report
81
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
98.5%
Georgia
0.3%
a
Development
Authority
of
Rockdale
County
,
AHPC
Terraces
at
Fieldstone
LLC
,
Revenue
,
144A,
2021
A-1
,
3.5
%
,
12/01/36
...............................
$
1,325,000
$
1,237,612
Maryland
90.6%
City
of
Baltimore
,
Revenue,
2020
A,
4%,
7/01/45
........................................
4,500,000
5,086,419
Revenue,
2020
A,
5%,
7/01/50
........................................
9,115,000
11,069,562
Wastewater
Utility
Fund,
Revenue,
2017
A,
5%,
7/01/46
.....................
5,000,000
5,699,378
b
County
of
Anne
Arundel
,
Glenview
Housing
LP
,
Revenue
,
2009
,
Mandatory
Put
,
5
%
,
1/01/27
.........................................................
1,845,000
1,849,504
County
of
Baltimore
,
GO,
5%,
2/01/39
..................................................
2,900,000
3,289,222
GO,
5%,
2/01/41
..................................................
2,900,000
3,284,132
County
of
Harford
,
Tax
Allocation,
2021,
Refunding,
4%,
7/01/31
.............................
150,000
171,618
Tax
Allocation,
2021,
Refunding,
4%,
7/01/36
.............................
750,000
850,601
Tax
Allocation,
2021,
Refunding,
4%,
7/01/40
.............................
675,000
760,875
County
of
Prince
George's
,
GO,
2018
A,
4%,
7/15/35
............................................
11,405,000
12,986,950
GO,
2020
A,
5%,
7/15/40
............................................
900,000
1,079,642
Howard
County
Housing
Commission
,
Revenue,
2013,
5%,
10/01/28
........................................
10,000,000
10,458,003
Revenue,
2016,
4%,
6/01/46
.........................................
2,000,000
2,110,926
Revenue,
2017,
5%,
12/01/46
........................................
5,000,000
5,579,695
Maryland
Community
Development
Administration
,
Housing,
Revenue,
2019
D,
3%,
7/01/39
................................
1,500,000
1,537,847
Housing,
Revenue,
2019
D,
3.2%,
7/01/44
...............................
1,000,000
1,029,960
Maryland
Community
Development
Administration
Local
Government
Infrastructure
,
Revenue,
2014
A-2,
Pre-Refunded,
5%,
6/01/34
...........................
455,000
476,988
Revenue,
2017
A-1,
4%,
6/01/47
......................................
2,300,000
2,479,726
Revenue,
2018
A-1,
5%,
6/01/48
......................................
1,310,000
1,550,502
Revenue,
A-2,
5%,
6/01/34
...........................................
1,245,000
1,303,257
Revenue,
A-2,
Pre-Refunded,
5%,
6/01/34
...............................
1,800,000
1,888,138
Revenue,
Senior
Lien,
2019
B-1,
4%,
6/01/49
.............................
3,000,000
3,321,219
Maryland
Economic
Development
Corp.
,
Frostburg
State
University
Project,
Revenue,
Senior
Lien,
2013,
Refunding,
5%,
10/01/33
.......................................................
5,000,000
5,173,725
Morgan
State
University,
Revenue,
2020,
4%,
7/01/40
......................
1,000,000
1,081,681
Morgan
State
University,
Revenue,
2020,
5%,
7/01/50
......................
1,250,000
1,435,007
Morgan
View
Student
Housing,
Revenue,
Senior
Lien,
2012,
Refunding,
5%,
7/01/27
4,750,000
4,808,473
Morgan
View
Student
Housing,
Revenue,
Senior
Lien,
2012,
Refunding,
5%,
7/01/34
2,150,000
2,172,788
University
of
Maryland
College
Park,
Revenue,
2016,
Refunding,
AGMC
Insured,
5%,
6/01/35
........................................................
4,225,000
4,795,389
University
of
Maryland
College
Park,
Revenue,
2016,
Refunding,
AGMC
Insured,
5%,
6/01/43
........................................................
3,305,000
3,746,849
University
Park
Phase
I
&
II
at
Salisbury
University,
Revenue,
2013,
Refunding,
5%,
6/01/34
........................................................
2,040,000
2,098,605
University
Village
at
Sheppard
Pratt,
Revenue,
2012,
Refunding,
5%,
7/01/27
.....
1,500,000
1,514,849
University
Village
at
Sheppard
Pratt,
Revenue,
2012,
Refunding,
5%,
7/01/33
.....
2,495,000
2,515,710
West
Village
&
Millennium
Hall
Student
Housing
at
Towson
University,
Revenue,
Senior
Lien,
2012,
5%,
7/01/27
......................................
1,145,000
1,156,944
Maryland
Health
&
Higher
Educational
Facilities
Authority
,
Adventist
Healthcare
Obligated
Group,
Revenue,
2016
A,
5.5%,
1/01/46
.........
9,750,000
11,347,237
Adventist
Healthcare
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
1/01/38
...
865,000
942,603
Adventist
Healthcare
Obligated
Group,
Revenue,
2021
B,
4%,
1/01/51
..........
2,000,000
2,140,663
Charlestown
Community,
Inc.,
Revenue,
2016
A,
Refunding,
5%,
1/01/45
........
4,170,000
4,645,332
Frederick
Health,
Inc.
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
7/01/50
..
1,715,000
1,884,072
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Maryland
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
82
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Maryland
(continued)
Maryland
Health
&
Higher
Educational
Facilities
Authority,
(continued)
Goucher
College,
Revenue,
2012
A,
5%,
7/01/34
..........................
$
1,500,000
$
1,518,172
Goucher
College,
Revenue,
2017
A,
Refunding,
5%,
7/01/44
.................
7,470,000
8,354,536
Johns
Hopkins
Health
System
Obligated
Group,
Revenue,
2015
A,
Refunding,
5%,
5/15/37
........................................................
10,000,000
11,015,713
Johns
Hopkins
Medical
Institutional
Parking
System,
Revenue,
2001,
AMBAC
Insured,
5%,
7/01/27
..............................................
655,000
660,971
Johns
Hopkins
Medical
Institutional
Parking
System,
Revenue,
2004,
AMBAC
Insured,
5%,
7/01/34
..............................................
5,000,000
5,045,539
Johns
Hopkins
Medical
Institutional
Parking
System,
Revenue,
2004
B,
AMBAC
Insured,
5%,
7/01/38
..............................................
6,200,000
6,256,469
Johns
Hopkins
University,
Revenue,
2013
B,
5%,
7/01/38
....................
5,000,000
5,234,252
LifeBridge
Health
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
7/01/47
.....
4,000,000
4,493,820
LifeBridge
Health
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
7/01/44
.....
2,000,000
2,300,416
Loyola
University
Maryland,
Inc.,
Revenue,
2014,
Refunding,
5%,
10/01/45
......
2,250,000
2,447,162
Loyola
University
Maryland,
Inc.,
Revenue,
2019
A,
Refunding,
5%,
10/01/49
.....
2,000,000
2,371,791
Luminis
Health
Obligated
Group,
Revenue,
2014,
Pre-Refunded,
5%,
7/01/39
....
10,000,000
10,850,028
Maryland
Institute
College
of
Art,
Revenue,
2012,
5%,
6/01/29
................
1,000,000
1,009,570
Maryland
Institute
College
of
Art,
Revenue,
2016,
Refunding,
4%,
6/01/42
.......
5,325,000
5,627,228
MedStar
Health
Obligated
Group,
Revenue,
1997,
AMBAC
Insured,
ETM,
5%,
7/01/27
........................................................
8,175,000
9,030,523
MedStar
Health
Obligated
Group,
Revenue,
2013
A,
5%,
8/15/38
..............
5,000,000
5,264,845
MedStar
Health
Obligated
Group,
Revenue,
2017
A,
5%,
5/15/45
..............
5,000,000
5,806,440
Meritus
Medical
Center
Obligated
Group,
Revenue,
2015,
Refunding,
5%,
7/01/45
.
8,535,000
9,340,293
Stevenson
University,
Inc.,
Revenue,
2021
A,
Refunding,
5%,
6/01/28
..........
430,000
501,666
Stevenson
University,
Inc.,
Revenue,
2021
A,
Refunding,
5%,
6/01/30
..........
775,000
931,106
Stevenson
University,
Inc.,
Revenue,
2021
A,
Refunding,
5%,
6/01/32
..........
800,000
973,838
Stevenson
University,
Inc.,
Revenue,
2021
A,
Refunding,
4%,
6/01/34
..........
350,000
391,967
Stevenson
University,
Inc.,
Revenue,
2021
A,
Refunding,
4%,
6/01/36
..........
1,125,000
1,256,107
Stevenson
University,
Inc.,
Revenue,
2021
A,
Refunding,
4%,
6/01/40
..........
1,850,000
2,050,070
Stevenson
University,
Inc.,
Revenue,
2021
A,
Refunding,
4%,
6/01/46
..........
1,000,000
1,092,780
Stevenson
University,
Inc.,
Revenue,
2021
A,
Refunding,
4%,
6/01/55
..........
3,250,000
3,521,126
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2017
MD,
5%,
12/01/46
........
1,680,000
1,941,900
University
of
Maryland
Medical
System
Obligated
Group,
Revenue,
2015,
Refunding,
5%,
7/01/35
....................................................
2,100,000
2,313,067
University
of
Maryland
Medical
System
Obligated
Group,
Revenue,
2017
B,
Refunding,
5%,
7/01/39
............................................
10,000,000
11,556,816
University
of
Maryland
Medical
System
Obligated
Group,
Revenue,
2017
D,
4%,
7/01/48
........................................................
5,000,000
5,412,373
Maryland
Industrial
Development
Financing
Authority
,
McDonogh
School,
Inc.,
Revenue,
2019,
Refunding,
4%,
9/01/43
..............
1,100,000
1,217,855
McDonogh
School,
Inc.,
Revenue,
2019,
Refunding,
4%,
9/01/48
..............
610,000
670,794
Maryland
Stadium
Authority
,
Baltimore
City
Public
School
Construction
Financing
Fund,
Revenue,
2016,
Pre-
Refunded,
5%,
5/01/46
............................................
10,085,000
11,575,240
Baltimore
City
Public
School
Construction
Financing
Fund,
Revenue,
2020
A,
5%,
5/01/50
........................................................
12,225,000
16,731,660
Maryland
Stadium
Authority
Built
to
Learn
,
Revenue
,
2021
,
4
%
,
6/01/46
..........
5,000,000
5,472,413
Maryland
State
Transportation
Authority
,
Revenue,
2020,
4%,
7/01/45
.........................................
8,000,000
9,003,722
Revenue,
2021
A,
Refunding,
5%,
7/01/51
...............................
4,900,000
6,041,409
State
of
Maryland
,
GO,
2020
A,
5%,
8/01/35
............................................
2,000,000
2,509,334
Department
of
Transportation,
Revenue,
2020,
5%,
10/01/33
.................
3,000,000
3,768,915
State
of
Maryland
Department
of
Transportation
,
Maryland
Aviation
Administration,
Revenue,
2021
B,
5%,
8/01/46
..............
3,000,000
3,569,839
Maryland
Aviation
Administration,
Revenue,
2021
B,
4%,
8/01/51
..............
3,500,000
3,796,605
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Maryland
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
83
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Maryland
(continued)
Town
of
Chestertown
,
Washington
College,
Revenue,
2021
A,
Refunding,
4%,
3/01/36
...............
$
3,700,000
$
4,078,463
Washington
College,
Revenue,
2021
A,
Refunding,
4%,
3/01/37
...............
2,095,000
2,306,430
University
System
of
Maryland
,
Revenue,
2021
A,
Refunding,
5%,
4/01/31
...............................
8,685,000
11,039,583
Revenue,
2021
A,
Refunding,
4%,
4/01/32
...............................
5,855,000
6,931,363
Washington
Suburban
Sanitary
Commission
,
Revenue,
Second
Series,
2016,
5%,
6/01/37
.............................
5,000,000
5,715,711
Revenue,
Second
Series,
2016,
4%,
6/01/43
.............................
8,070,000
8,823,243
361,147,254
South
Carolina
0.3%
South
Carolina
Jobs-Economic
Development
Authority
,
a
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
700,000
655,026
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
700,000
654,294
1,309,320
Texas
0.6%
a
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
1,000,000
927,684
a
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
A-2
,
5
%
,
12/01/52
............
1,300,000
1,304,192
2,231,876
Washington
0.2%
a
Washington
State
Housing
Finance
Commission
,
Madison
at
Rivers
Edge
Apartments
LLC
,
Revenue
,
144A,
2021
A
,
3.65
%
,
1/01/37
............................
700,000
654,846
Wisconsin
0.9%
a
Public
Finance
Authority
,
Revenue,
144A,
2022,
B-1,
4%,
12/28/44
................................
800,000
770,812
Affordable
Housing
Preservation
Corp.
(The),
Revenue,
144A,
2021,
5.25%,
12/01/22
.......................................................
2,700,000
2,687,578
3,458,390
U.S.
Territories
5.6%
District
of
Columbia
3.2%
Washington
Metropolitan
Area
Transit
Authority
,
Revenue,
2017
B,
5%,
7/01/42
........................................
5,000,000
5,778,408
Revenue,
2020
A,
5%,
7/15/45
........................................
3,000,000
3,660,958
Revenue,
2021
A,
5%,
7/15/37
........................................
1,000,000
1,260,254
Revenue,
2021
A,
4%,
7/15/43
........................................
1,750,000
1,992,849
12,692,469
Puerto
Rico
2.4%
Puerto
Rico
Electric
Power
Authority
,
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/32
....................
2,000,000
2,117,965
c
Revenue,
WW-RSA-1,
5.5%,
7/01/38
...................................
1,975,000
2,054,000
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue,
CC,
Refunding,
AGMC
Insured,
5.25%,
7/01/33
...................
1,805,000
1,891,637
Revenue,
L,
Refunding,
NATL
Insured,
5.25%,
7/01/35
......................
1,000,000
1,057,945
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Maryland
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
84
s
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
U.S.
Territories
(continued)
Puerto
Rico
(continued)
Puerto
Rico
Highway
&
Transportation
Authority,
(continued)
Revenue,
L,
Refunding,
AGMC
Insured,
5.25%,
7/01/41
.....................
$
2,550,000
$
2,652,740
9,774,287
Total
U.S.
Territories
....................................................................
22,466,756
Total
Municipal
Bonds
(Cost
$385,530,274)
.....................................
392,506,054
a
a
a
a
a
Total
Investments
(Cost
$385,530,274)
98.5%
...................................
$392,506,054
Other
Assets,
less
Liabilities
1.5%
.............................................
5,988,838
Net
Assets
100.0%
...........................................................
$398,494,892
See
Abbreviations
on
page
149
.
a
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
February
28,
2022,
the
aggregate
value
of
these
securities
was
$8,237,750,
representing
2.1%
of
net
assets.
b
The
maturity
date
shown
represents
the
mandatory
put
date.
c
See
Note
7
regarding
defaulted
securities.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Missouri
Tax-Free
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
85
a
Year
Ended
February
28,
Year
Ended
February
28,
2019
b
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
................................
$11.85
$12.09
$11.47
$11.41
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.28
0.29
0.31
0.16
Net
realized
and
unrealized
gains
(losses)
........................
(0.37)
(0.24)
0.63
0.06
Total
from
investment
operations
.................................
(0.09)
0.05
0.94
0.22
Less
distributions
from:
Net
investment
income
.......................................
(0.28)
(0.29)
(0.32)
(0.16)
Net
asset
value,
end
of
year
....................................
$11.48
$11.85
$12.09
$11.47
Total
return
e
................................................
(0.84)%
0.41%
8.32%
1.98%
Ratios
to
average
net
assets
f
Expenses
g
.................................................
0.81%
0.81%
0.81%
0.84%
Net
investment
income
........................................
2.33%
2.42%
2.62%
2.96%
Supplemental
data
Net
assets,
end
of
year
(000’s)
..................................
$208,059
$169,677
$122,845
$63,400
Portfolio
turnover
rate
.........................................
21.64%
18.20%
14.83%
9.79%
a
For
the
year
ended
February
29.
b
For
the
period
September
10,
2018
(effective
date)
to
February
28,
2019.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Missouri
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
86
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.84
$12.09
$11.46
$11.38
$11.74
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.30
0.31
0.33
0.35
0.36
Net
realized
and
unrealized
gains
(losses)
...........
(0.36)
(0.26)
0.64
0.09
(0.34)
Total
from
investment
operations
....................
(0.06)
0.05
0.97
0.44
0.02
Less
distributions
from:
Net
investment
income
..........................
(0.30)
(0.30)
(0.34)
(0.36)
(0.38)
Net
asset
value,
end
of
year
.......................
$11.48
$11.84
$12.09
$11.46
$11.38
Total
return
d
...................................
(0.60)%
0.48%
8.58%
3.90%
0.12%
Ratios
to
average
net
assets
Expenses
.....................................
0.66%
e
0.66%
e
0.66%
e
0.69%
e
0.66%
Net
investment
income
...........................
2.49%
2.58%
2.77%
3.11%
3.05%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$588,698
$647,517
$708,399
$700,839
$793,226
Portfolio
turnover
rate
............................
21.64%
18.20%
14.83%
9.79%
20.04%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Missouri
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
87
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.97
$12.21
$11.58
$11.49
$11.86
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.23
0.24
0.26
0.29
0.29
Net
realized
and
unrealized
gains
(losses)
...........
(0.37)
(0.24)
0.65
0.09
(0.35)
Total
from
investment
operations
....................
(0.14)
—
0.91
0.38
(0.06)
Less
distributions
from:
Net
investment
income
..........................
(0.23)
(0.24)
(0.28)
(0.29)
(0.31)
Net
asset
value,
end
of
year
.......................
$11.60
$11.97
$12.21
$11.58
$11.49
Total
return
d
...................................
(1.23)%
0.01%
7.92%
3.37%
(0.53)%
Ratios
to
average
net
assets
Expenses
.....................................
1.20%
e
1.21%
e
1.21%
e
1.24%
e
1.21%
Net
investment
income
...........................
1.91%
2.01%
2.22%
2.56%
2.50%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$52,654
$74,779
$104,721
$108,739
$149,306
Portfolio
turnover
rate
............................
21.64%
18.20%
14.83%
9.79%
20.04%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Missouri
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
88
In
a
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2022
2021
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.85
$12.10
$11.47
$11.38
$11.72
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.31
0.32
0.34
0.37
0.22
Net
realized
and
unrealized
gains
(losses)
...........
(0.36)
(0.25)
0.65
0.09
(0.35)
Total
from
investment
operations
....................
(0.05)
0.07
0.99
0.46
(0.13)
Less
distributions
from:
Net
investment
income
..........................
(0.31)
(0.32)
(0.36)
(0.37)
(0.21)
Net
asset
value,
end
of
year
.......................
$11.49
$11.85
$12.10
$11.47
$11.38
Total
return
e
...................................
(0.47)%
0.61%
8.71%
4.12%
(1.11)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
......
0.53%
0.53%
0.54%
0.55%
0.55%
Expenses
net
of
waiver
and
payments
by
affiliates
.......
0.52%
g
0.53%
g,h
0.53%
g
0.54%
g
0.53%
Net
investment
income
...........................
2.61%
2.70%
2.90%
3.26%
3.18%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$33,747
$30,329
$23,700
$18,929
$17,534
Portfolio
turnover
rate
............................
21.64%
18.20%
14.83%
9.79%
20.04%
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Missouri
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
89
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.85
$12.09
$11.47
$11.38
$11.75
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.31
0.32
0.34
0.37
0.37
Net
realized
and
unrealized
gains
(losses)
...........
(0.36)
(0.24)
0.63
0.09
(0.35)
Total
from
investment
operations
....................
(0.05)
0.08
0.97
0.46
0.02
Less
distributions
from:
Net
investment
income
..........................
(0.31)
(0.32)
(0.35)
(0.37)
(0.39)
Net
asset
value,
end
of
year
.......................
$11.49
$11.85
$12.09
$11.47
$11.38
Total
return
....................................
(0.50)
%
0.66%
8.59%
4.09%
0.12%
Ratios
to
average
net
assets
Expenses
.....................................
0.56%
d
0.56%
d
0.56%
d
0.59%
d
0.56%
Net
investment
income
...........................
2.59%
2.68%
2.87%
3.21%
3.15%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$86,643
$85,456
$82,970
$60,117
$72,460
Portfolio
turnover
rate
............................
21.64%
18.20%
14.83%
9.79%
20.04%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments,
February
28,
2022
Franklin
Missouri
Tax-Free
Income
Fund
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
90
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
99.2%
California
0.1%
Santa
Barbara
Secondary
High
School
District
,
GO
,
2011
A
,
Zero
Cpn.,
8/01/40
....
$
1,790,000
$
1,035,987
Florida
0.6%
Capital
Trust
Agency,
Inc.
,
Kingdom
Development
Obligated
Group,
Revenue,
2021
A-1,
3.75%,
12/01/36
....
5,544,000
5,438,941
a
SHI
-
Lake
Osborne
LLC,
Revenue,
144A,
2021
A-1,
3.68%,
1/01/57
...........
850,000
760,892
6,199,833
Georgia
0.3%
a
Development
Authority
of
Rockdale
County
,
AHPC
Terraces
at
Fieldstone
LLC
,
Revenue
,
144A,
2021
A-1
,
3.5
%
,
12/01/36
...............................
3,250,000
3,035,652
Missouri
92.2%
Affton
School
District
No.
101
,
GO,
2017
A,
Refunding,
5%,
3/01/32
...................................
1,500,000
1,752,133
GO,
2017
A,
Refunding,
5%,
3/01/33
...................................
1,595,000
1,859,755
GO,
2017
A,
Refunding,
5%,
3/01/34
...................................
1,700,000
1,980,403
GO,
2017
A,
Refunding,
5%,
3/01/35
...................................
1,810,000
2,103,816
GO,
2017
A,
Refunding,
5%,
3/01/36
...................................
1,920,000
2,224,669
Bi-State
Development
Agency
of
the
Missouri-Illinois
Metropolitan
District
,
Revenue,
2013
A,
Pre-Refunded,
5%,
10/01/44
...........................
10,000,000
10,249,103
Revenue,
2019,
Refunding,
4%,
10/01/34
................................
830,000
953,007
Revenue,
2019,
Refunding,
5%,
10/01/44
................................
10,995,000
13,154,198
Revenue,
2019,
Refunding,
4%,
10/01/48
................................
10,000,000
11,116,048
Cape
Girardeau
County
Industrial
Development
Authority
,
Procter
&
Gamble
Co.
(The),
Revenue,
1998,
5.3%,
5/15/28
..................
6,875,000
6,899,980
SoutheastHEALTH
Obligated
Group,
Revenue,
2021,
4%,
3/01/41
.............
6,510,000
7,066,991
SoutheastHEALTH
Obligated
Group,
Revenue,
2021,
3%,
3/01/46
.............
3,000,000
2,909,302
SoutheastHEALTH
Obligated
Group,
Revenue,
2021,
4%,
3/01/46
.............
5,230,000
5,617,906
St.
Francis
Obligated
Group,
Revenue,
2013
A,
Refunding,
5%,
6/01/33
.........
5,000,000
5,053,857
St.
Francis
Obligated
Group,
Revenue,
2013
A,
Refunding,
5%,
6/01/37
.........
11,000,000
11,118,484
St.
Francis
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
6/01/39
..........
5,110,000
5,710,353
Cape
Girardeau
County
School
District
No.
R-2
,
GO,
2018,
4%,
3/01/32
.............................................
1,000,000
1,134,552
GO,
2018,
4%,
3/01/33
.............................................
1,000,000
1,131,837
GO,
2018,
5%,
3/01/38
.............................................
2,195,000
2,600,346
Cape
Girardeau
School
District
No.
63
,
GO,
2019,
Refunding,
4%,
3/01/38
.....................................
650,000
719,476
GO,
2019,
Refunding,
4%,
3/01/39
.....................................
500,000
552,939
City
of
Bridgeton
,
Sales
Tax,
Revenue,
2021
A,
Refunding,
2%,
12/01/32
......................
500,000
456,394
Sales
Tax,
Revenue,
2021
A,
Refunding,
2.125%,
12/01/33
..................
1,170,000
1,078,509
City
of
Kansas
City
,
Sanitary
Sewer
System,
Revenue,
2018
A,
4%,
1/01/35
.....................
1,500,000
1,693,731
Sanitary
Sewer
System,
Revenue,
2018
A,
4%,
1/01/42
.....................
5,000,000
5,641,696
Water,
Revenue,
2017
A,
4%,
12/01/41
.................................
4,970,000
5,450,511
City
of
Marshfield
,
Waterworks
&
Sewer
System,
Revenue,
2020
B,
AGMC
Insured,
5%,
2/01/43
....
1,305,000
1,510,358
Waterworks
&
Sewer
System,
Revenue,
2020
B,
AGMC
Insured,
5%,
2/01/50
....
1,585,000
1,793,936
City
of
Peculiar
,
Water
&
Sewer,
Revenue,
2017,
AGMC
Insured,
4%,
6/01/39
.................
1,000,000
1,106,009
Water
&
Sewer,
Revenue,
2017,
AGMC
Insured,
4%,
6/01/42
.................
2,405,000
2,664,954
City
of
Republic
,
Revenue
,
2022
,
3
%
,
5/01/47
..............................
5,000,000
4,975,288
City
of
Sikeston
,
Electric
System
,
Revenue
,
2012
,
Refunding
,
5
%
,
6/01/22
........
12,570,000
12,702,539
City
of
Springfield
,
Revenue,
2012,
Refunding,
5%,
4/01/31
.................................
1,795,000
1,801,490
Revenue,
2012,
Refunding,
5%,
4/01/32
.................................
1,885,000
1,891,815
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Missouri
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
91
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Missouri
(continued)
City
of
St.
Charles
,
COP,
2020
B,
Refunding,
3%,
2/01/38
..................................
$
2,200,000
$
2,311,389
COP,
2020
B,
Refunding,
3%,
2/01/39
..................................
1,500,000
1,571,784
City
of
St.
Louis
,
Airport,
Revenue,
2005,
Refunding,
NATL
Insured,
5.5%,
7/01/29
..............
13,070,000
16,204,867
Airport,
Revenue,
2017
A,
Refunding,
AGMC
Insured,
5%,
7/01/25
.............
5,000,000
5,567,336
Airport,
Revenue,
2017
C,
Refunding,
AGMC
Insured,
5%,
7/01/42
.............
3,930,000
4,527,566
Airport,
Revenue,
2017
C,
Refunding,
AGMC
Insured,
5%,
7/01/47
.............
10,670,000
12,264,241
Airport,
Revenue,
2017
D,
Refunding,
AGMC
Insured,
5%,
7/01/33
.............
1,000,000
1,142,018
Airport,
Revenue,
2017
D,
Refunding,
AGMC
Insured,
5%,
7/01/34
.............
1,415,000
1,614,891
Airport,
Revenue,
2017
D,
Refunding,
AGMC
Insured,
5%,
7/01/36
.............
1,125,000
1,282,187
Airport,
Revenue,
2017
D,
Refunding,
AGMC
Insured,
5%,
7/01/37
.............
1,000,000
1,139,138
Airport,
Revenue,
2019
A,
5%,
7/01/49
..................................
2,500,000
2,926,737
Airport,
Revenue,
2019
C,
Refunding,
5%,
7/01/27
.........................
1,705,000
1,988,313
Clay
County
Reorganized
School
District
No.
R-1
,
GO,
2017,
3%,
3/01/34
.............................................
1,670,000
1,712,322
GO,
2017,
3%,
3/01/35
.............................................
1,730,000
1,773,040
GO,
2017,
3%,
3/01/36
.............................................
1,540,000
1,577,746
GO,
2017,
3.125%,
3/01/37
..........................................
1,855,000
1,906,277
Community
College
District
of
Central
Southwest
Missouri
,
COP,
2021,
3%,
3/01/40
.............................................
575,000
597,405
COP,
2021,
3%,
3/01/41
.............................................
400,000
412,450
Ferguson
Reorganized
School
District
No.
R-2
,
GO,
2018,
4%,
5/01/32
.............................................
1,000,000
1,109,679
GO,
2018,
5%,
5/01/38
.............................................
2,250,000
2,619,943
Fort
Osage
School
District
No.
R-1
,
GO
,
2018
,
Refunding
,
5.5
%
,
3/01/38
.........
3,010,000
3,678,055
Greene
County
Reorganized
School
District
No.
R-2
Willard
,
GO
,
2018
,
4
%
,
3/01/30
.
1,000,000
1,120,112
Hanley
Road
Corridor
Transportation
Development
District
,
Revenue,
2020,
Refunding,
1.625%,
10/01/33
............................
800,000
795,115
Revenue,
2020,
Refunding,
2%,
10/01/39
................................
900,000
884,725
Health
&
Educational
Facilities
Authority
of
the
State
of
Missouri
,
AT
Still
University
of
Health
Sciences,
Revenue,
2014,
Pre-Refunded,
5%,
10/01/39
1,250,000
1,327,524
Bethesda
Health
Group,
Inc.
Obligated
Group,
Revenue,
2015,
5%,
8/01/40
......
1,650,000
1,756,398
Bethesda
Health
Group,
Inc.
Obligated
Group,
Revenue,
2015,
5%,
8/01/45
......
1,300,000
1,372,200
Bethesda
Health
Group,
Inc.
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
8/01/30
........................................................
300,000
340,527
Bethesda
Health
Group,
Inc.
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
8/01/36
........................................................
2,075,000
2,316,158
Bethesda
Health
Group,
Inc.
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
8/01/41
........................................................
2,240,000
2,466,895
BJC
Healthcare
Obligated
Group,
Revenue,
2014,
5%,
1/01/44
...............
8,175,000
8,708,666
BJC
Healthcare
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
7/01/46
.....
5,000,000
5,593,614
BJC
Healthcare
Obligated
Group,
Revenue,
2021
A,
Refunding,
3%,
7/01/51
.....
5,000,000
4,864,816
Capital
Region
Medical
Center,
Revenue,
2020,
Refunding,
5%,
11/01/35
........
1,700,000
2,053,157
Capital
Region
Medical
Center,
Revenue,
2020,
Refunding,
5%,
11/01/40
........
2,000,000
2,390,370
CoxHealth
Obligated
Group,
Revenue,
2013
A,
5%,
11/15/38
.................
11,680,000
12,370,712
CoxHealth
Obligated
Group,
Revenue,
2013
A,
5%,
11/15/44
.................
2,760,000
2,920,814
CoxHealth
Obligated
Group,
Revenue,
2015
A,
Refunding,
5%,
11/15/39
........
17,000,000
18,926,943
CoxHealth
Obligated
Group,
Revenue,
2019
A,
4%,
11/15/44
.................
5,000,000
5,531,146
Kansas
City
University,
Revenue,
2017
A,
5%,
6/01/42
......................
2,800,000
3,228,930
Kansas
City
University,
Revenue,
2017
A,
5%,
6/01/47
......................
4,875,000
5,564,226
Lake
Regional
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
3%,
2/15/40
........................................................
2,060,000
2,078,281
Lake
Regional
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
3%,
2/15/41
........................................................
2,120,000
2,126,553
Lake
Regional
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
3%,
2/15/46
........................................................
5,590,000
5,448,674
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Missouri
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
92
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Missouri
(continued)
Health
&
Educational
Facilities
Authority
of
the
State
of
Missouri,
(continued)
Lake
Regional
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
2/15/51
........................................................
$
2,125,000
$
2,335,174
Lutheran
Senior
Services
Obligated
Group,
Revenue,
2016
A,
5%,
2/01/46
.......
4,000,000
4,307,048
Lutheran
Senior
Services
Obligated
Group,
Revenue,
2016
B,
Refunding,
5%,
2/01/46
........................................................
11,575,000
12,463,521
Lutheran
Senior
Services
Obligated
Group,
Revenue,
2019
A,
5%,
2/01/34
.......
2,000,000
2,174,685
Lutheran
Senior
Services
Obligated
Group,
Revenue,
2019
A,
5%,
2/01/42
.......
1,750,000
1,894,853
Lutheran
Senior
Services
Obligated
Group,
Revenue,
2019
C,
Refunding,
4%,
2/01/48
........................................................
485,000
510,731
Lutheran
Senior
Services
Obligated
Group,
Revenue,
2021,
4%,
2/01/29
........
1,960,000
2,159,972
Lutheran
Senior
Services
Obligated
Group,
Revenue,
2021,
4%,
2/01/31
........
2,120,000
2,361,893
Lutheran
Senior
Services
Obligated
Group,
Revenue,
2021,
4%,
2/01/32
........
2,205,000
2,441,083
Lutheran
Senior
Services
Obligated
Group,
Revenue,
2021,
4%,
2/01/42
........
5,000,000
5,430,404
Maryville
University
of
St.
Louis,
Revenue,
2015,
5%,
6/15/44
.................
5,000,000
5,371,237
Maryville
University
of
St.
Louis,
Revenue,
2019
A,
5%,
6/15/45
...............
4,000,000
4,526,096
Maryville
University
of
St.
Louis,
Revenue,
2020
A,
Refunding,
4%,
6/15/34
......
4,345,000
4,712,184
Maryville
University
of
St.
Louis,
Revenue,
2020
A,
Refunding,
4%,
6/15/38
......
4,885,000
5,269,299
b
Maryville
University
of
St.
Louis,
Revenue,
2022
A,
Refunding,
3.125%,
6/15/38
...
2,300,000
2,310,258
b
Maryville
University
of
St.
Louis,
Revenue,
2022
A,
Refunding,
3.375%,
6/15/45
...
1,000,000
1,011,334
Mercy
Health,
Revenue,
2012,
4%,
11/15/42
.............................
8,000,000
8,144,434
Mercy
Health,
Revenue,
2014
F,
5%,
11/15/45
............................
25,000,000
27,160,878
Mercy
Health,
Revenue,
2015
B,
Refunding,
5%,
2/01/45
....................
6,870,000
7,409,818
Mercy
Health,
Revenue,
2017
C,
Refunding,
5%,
11/15/47
...................
12,500,000
14,399,150
Mosaic
Health
System
Obligated
Group,
Revenue,
2019
A,
Refunding,
4%,
2/15/54
4,000,000
4,343,016
SSM
Health
Care
Obligated
Group,
Revenue,
2018
A,
5%,
6/01/48
............
5,000,000
5,850,421
St.
Louis
University,
Revenue,
2015
A,
5%,
10/01/38
.......................
10,000,000
11,189,092
St.
Louis
University,
Revenue,
2017
A,
5%,
10/01/47
.......................
15,000,000
17,313,939
St.
Louis
University,
Revenue,
2019
A,
5%,
10/01/46
.......................
5,775,000
6,833,456
St.
Luke's
Health
System
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
11/15/35
3,950,000
4,447,149
St.
Luke's
Health
System
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
11/15/43
.......................................................
2,000,000
2,348,110
St.
Luke's
Health
System
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/15/50
2,500,000
2,776,761
University
of
Central
Missouri,
Revenue,
2013
C-2,
5%,
10/01/34
..............
5,000,000
5,294,654
Howard
Bend
Levee
District
,
Special
Tax,
2021,
2.75%,
3/01/31
.....................................
400,000
387,756
Special
Tax,
2021,
3%,
3/01/36
.......................................
500,000
482,968
Special
Tax,
2021,
3.125%,
3/01/41
....................................
1,000,000
957,296
c
Special
Tax,
2022,
3.375%,
3/01/32
....................................
75,000
75,080
c
Special
Tax,
2022,
3.5%,
3/01/37
......................................
175,000
175,187
c
Special
Tax,
2022,
3.625%,
3/01/42
....................................
200,000
200,213
Jackson
County
School
District
No.
R-IV
Blue
Springs
,
GO,
2018
A,
5.5%,
3/01/36
...........................................
3,000,000
3,771,330
GO,
2018
A,
5.5%,
3/01/37
...........................................
2,000,000
2,513,275
Jefferson
City
School
District
,
GO
,
2018
,
5
%
,
3/01/38
........................
6,070,000
6,976,632
Jefferson
County
School
District
No.
R-VI
,
Festus,
COP,
2021
B,
4%,
4/01/39
.....................................
350,000
394,859
Festus,
COP,
2021
B,
4%,
4/01/40
.....................................
575,000
647,560
Festus,
COP,
2021
B,
4%,
4/01/41
.....................................
500,000
563,085
Festus,
COP,
2021
B,
3%,
4/01/42
.....................................
750,000
762,562
Festus,
COP,
2021
B,
3%,
4/01/44
.....................................
1,500,000
1,517,192
Festus,
COP,
2021
B,
2.375%,
4/01/46
..................................
2,000,000
1,766,602
Joplin
Industrial
Development
Authority
,
Freeman
Health
System
Obligated
Group
,
Revenue
,
2015
,
Refunding
,
5
%
,
2/15/35
.................................
4,000,000
4,270,710
Joplin
Schools
,
GO
,
2017
,
Refunding
,
4
%
,
3/01/32
..........................
4,000,000
4,449,840
Kansas
City
Industrial
Development
Authority
,
Revenue,
2011
A,
Refunding,
5.5%,
9/01/29
..............................
5,000,000
5,020,168
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Missouri
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
93
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Missouri
(continued)
Kansas
City
Industrial
Development
Authority,
(continued)
Revenue,
2011
A,
Refunding,
5.5%,
9/01/30
..............................
$
12,000,000
$
12,049,000
Revenue,
2011
A,
Refunding,
5%,
9/01/32
...............................
3,000,000
3,011,317
Airport,
Revenue,
2020
A,
AGMC
Insured,
4%,
3/01/50
......................
5,000,000
5,359,875
City
of
Kansas
City
Airport,
Revenue,
2019
B,
5%,
3/01/46
...................
19,425,000
22,254,849
City
of
Kansas
City
Airport,
Revenue,
2019
B,
AGMC
Insured,
5%,
3/01/49
.......
3,000,000
3,438,879
City
of
Kansas
City
Airport,
Revenue,
2019
B,
5%,
3/01/54
...................
10,090,000
11,449,425
City
of
Kansas
City
Airport,
Revenue,
2020
A,
AGMC
Insured,
4%,
3/01/57
.......
5,900,000
6,307,379
City
of
Kansas
City
Airport,
Revenue,
2020
A,
AGMC
Insured,
5%,
3/01/57
.......
100,000
115,498
Liberty
Public
School
District
No.
53
,
GO
,
2018
,
4
%
,
3/01/37
...................
4,500,000
4,863,973
Metropolitan
St.
Louis
Sewer
District
,
Revenue,
2015
B,
Pre-Refunded,
5%,
5/01/45
............................
1,610,000
1,790,166
Revenue,
2015
B,
Refunding,
5%,
5/01/45
...............................
3,390,000
3,727,265
Revenue,
2016
C,
Refunding,
5%,
5/01/46
...............................
24,700,000
28,349,870
Revenue,
2017
A,
Refunding,
5%,
5/01/42
...............................
5,000,000
5,769,488
Revenue,
2017
A,
Refunding,
5%,
5/01/47
...............................
10,000,000
11,480,531
Revenue,
2019
B,
5%,
5/01/44
........................................
3,500,000
4,219,341
Revenue,
2019
B,
5%,
5/01/49
........................................
6,290,000
7,514,648
Missouri
Development
Finance
Board
,
City
of
Independence,
Revenue,
2012
A,
5%,
6/01/37
.......................
5,000,000
5,050,070
City
of
Independence,
Revenue,
2021,
Refunding,
4%,
3/01/36
...............
1,140,000
1,257,565
City
of
Independence,
Revenue,
2021,
Refunding,
4%,
3/01/37
...............
500,000
550,042
City
of
Independence,
Revenue,
2021,
Refunding,
4%,
3/01/41
...............
515,000
561,619
City
of
Independence,
Revenue,
2021,
Refunding,
3%,
3/01/46
...............
2,640,000
2,525,893
City
of
Independence,
Revenue,
2021,
Refunding,
4%,
3/01/51
...............
7,945,000
8,520,991
Procter
&
Gamble
Co.
(The),
Revenue,
1999,
5.2%,
3/15/29
..................
3,000,000
3,604,957
Missouri
Housing
Development
Commission
,
Revenue,
2018
B,
GNMA
Insured,
4%,
11/01/38
...........................
920,000
972,998
Revenue,
2019
C,
GNMA
Insured,
3%,
11/01/44
...........................
3,380,000
3,425,273
Revenue,
2020
C,
GNMA
Insured,
2.4%,
11/01/45
.........................
2,125,000
1,952,995
Revenue,
2020
D,
GNMA
Insured,
2.55%,
11/01/50
........................
4,995,000
4,608,565
Revenue,
2021
A,
GNMA
Insured,
2.4%,
11/01/51
.........................
2,695,000
2,373,130
Revenue,
2021
B,
GNMA
Insured,
2.2%,
11/01/46
.........................
1,205,000
1,026,247
Revenue,
2021
B,
GNMA
Insured,
2.3%,
11/01/51
.........................
7,530,000
6,338,683
Revenue,
2021
C,
GNMA
Insured,
2.55%,
11/01/46
........................
4,840,000
4,501,477
Revenue,
2021
C,
GNMA
Insured,
2.625%,
11/01/51
.......................
2,500,000
2,288,182
Missouri
Joint
Municipal
Electric
Utility
Commission
,
Revenue,
2014
A,
Refunding,
5%,
1/01/31
...............................
2,000,000
2,131,312
Revenue,
2014
A,
Refunding,
5%,
1/01/32
...............................
1,500,000
1,598,202
Revenue,
2014
A,
Refunding,
5%,
1/01/32
...............................
10,000,000
10,909,349
Revenue,
2014
A,
Refunding,
5%,
1/01/33
...............................
7,500,000
8,179,835
Revenue,
2014
A,
Refunding,
5%,
1/01/34
...............................
2,000,000
2,130,185
Revenue,
2015
A,
Refunding,
5%,
12/01/30
..............................
4,000,000
4,427,420
Revenue,
2015
A,
Refunding,
5%,
12/01/31
..............................
6,000,000
6,635,104
Revenue,
2015
A,
Refunding,
5%,
12/01/35
..............................
7,335,000
8,101,602
Revenue,
2016
A,
Refunding,
5%,
12/01/40
..............................
27,950,000
31,610,491
Revenue,
2018,
5%,
12/01/43
........................................
2,000,000
2,293,460
Monarch-Chesterfield
Levee
District
,
Special
Tax
,
2015
,
Refunding
,
5
%
,
3/01/40
....
4,395,000
4,686,499
Move
Rolla
Transportation
Development
District
,
Revenue
,
2017
,
4.75
%
,
6/01/47
...
5,000,000
5,260,959
Normandy
Schools
Collaborative
,
GO,
2021
B,
2%,
3/01/40
............................................
2,050,000
1,799,125
GO,
2021
B,
2%,
3/01/41
............................................
1,700,000
1,481,480
Pattonville
R-3
School
District
,
GO,
2018
A,
5%,
3/01/37
............................................
2,750,000
3,103,856
GO,
2018
A,
5%,
3/01/38
............................................
1,000,000
1,127,022
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Missouri
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
94
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Missouri
(continued)
Raytown
C-2
School
District
,
GO,
2019
A,
5%,
3/01/38
............................................
$
2,500,000
$
3,013,977
GO,
2019
A,
5%,
3/01/39
............................................
2,250,000
2,706,760
Riverside-Quindaro
Bend
Levee
District
of
Platte
County
,
Special
Assessment,
2017,
Refunding,
5%,
3/01/26
........................
1,000,000
1,097,351
Special
Assessment,
2017,
Refunding,
5%,
3/01/29
........................
2,585,000
2,858,359
Southeast
Missouri
State
University
,
Revenue,
2020,
Refunding,
4%,
4/01/40
.................................
5,075,000
5,515,680
Revenue,
2020,
Refunding,
4%,
4/01/43
.................................
2,580,000
2,788,570
Springfield
School
District
No.
R-12
,
GO,
2013,
Refunding,
5%,
3/01/33
.....................................
1,000,000
1,040,255
GO,
2019,
5%,
3/01/37
.............................................
14,250,000
17,134,212
St.
Charles
County
School
District
No.
R-IV
Wentzville
,
GO
,
2018
,
Refunding
,
4
%
,
3/01/38
.........................................................
15,400,000
16,976,212
St.
Charles
School
District
,
GO
,
2017
,
4
%
,
3/01/36
..........................
2,000,000
2,171,417
St.
Louis
County
Industrial
Development
Authority
,
Friendship
Village
of
West
County,
Revenue,
2012,
Pre-Refunded,
5%,
9/01/42
...
3,165,000
3,232,385
Friendship
Village
St.
Louis
Obligated
Group,
Revenue,
2013
A,
5.875%,
9/01/43
..
7,000,000
7,315,564
Friendship
Village
St.
Louis
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
9/01/48
........................................................
7,095,000
7,652,453
St.
Louis
Land
Clearance
for
Redevelopment
Authority
,
Revenue,
2021,
2.125%,
7/15/37
......................................
3,525,000
3,252,752
Revenue,
2021,
2.125%,
7/15/39
......................................
3,680,000
3,350,597
Revenue,
2021,
2.25%,
7/15/41
.......................................
3,845,000
3,528,953
Revenue,
2021
A,
Refunding,
2.125%,
4/01/39
............................
7,000,000
6,236,634
St.
Louis
Municipal
Finance
Corp.
,
City
of
St.
Louis
,
Revenue
,
2020
,
AGMC
Insured
,
5
%
,
10/01/45
.....................................................
5,000,000
5,975,337
St.
Louis
Municipal
Library
District
,
COP,
2020,
Refunding,
BAM
Insured,
4%,
3/15/44
.........................
1,450,000
1,607,935
COP,
2020,
Refunding,
BAM
Insured,
4%,
3/15/48
.........................
4,800,000
5,291,110
Washington
Industrial
Development
Authority
,
Revenue
,
2021
,
Refunding
,
2.5
%
,
11/01/29
........................................................
550,000
528,903
Washington
School
District
,
GO
,
2019
,
4
%
,
3/01/39
..........................
1,500,000
1,661,847
894,186,645
South
Carolina
0.3%
South
Carolina
Jobs-Economic
Development
Authority
,
a
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
1,900,000
1,777,926
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
1,900,000
1,775,942
3,553,868
Texas
0.7%
a
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
2,500,000
2,319,208
Lake
Houston
Redevelopment
Authority
,
City
of
Houston
Reinvestment
Zone
No.
10,
Revenue,
2021,
Refunding,
2.5%,
9/01/41
........................................................
525,000
463,418
City
of
Houston
Reinvestment
Zone
No.
10,
Revenue,
2021,
Refunding,
3%,
9/01/44
700,000
668,379
a
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
A-2
,
5
%
,
12/01/52
............
3,200,000
3,210,320
6,661,325
Washington
0.2%
a
Washington
State
Housing
Finance
Commission
,
Madison
at
Rivers
Edge
Apartments
LLC
,
Revenue
,
144A,
2021
A
,
3.65
%
,
1/01/37
............................
1,900,000
1,777,439
Wisconsin
1.2%
a
Public
Finance
Authority
,
Revenue,
144A,
2022,
B-1,
4%,
12/28/44
................................
1,900,000
1,830,677
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Missouri
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
95
s
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Wisconsin
(continued)
a
Public
Finance
Authority,
(continued)
Affordable
Housing
Preservation
Corp.
(The),
Revenue,
144A,
2021,
5.25%,
12/01/22
.......................................................
$
6,600,000
$
6,569,635
AL-FL
Portfolio
Obligated
Group,
Revenue,
144A,
2021
A,
3.4%,
12/01/36
.......
3,250,000
3,030,760
11,431,072
U.S.
Territories
3.6%
Guam
1.3%
Guam
Government
Waterworks
Authority
,
Revenue
,
2020
A
,
5
%
,
1/01/50
.........
5,790,000
6,767,079
Guam
Power
Authority
,
Revenue
,
2012
A
,
Refunding
,
AGMC
Insured
,
5
%
,
10/01/25
.
5,420,000
5,531,365
12,298,444
Puerto
Rico
2.3%
Puerto
Rico
Electric
Power
Authority
,
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/32
....................
1,750,000
1,853,219
d
Revenue,
WW-RSA-1,
5.5%,
7/01/38
...................................
4,690,000
4,877,600
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue,
2007
N,
Refunding,
AGMC
Insured,
5.25%,
7/01/36
................
500,000
522,440
Revenue,
CC,
Refunding,
AGMC
Insured,
5.25%,
7/01/33
...................
1,000,000
1,047,998
Revenue,
CC,
Refunding,
AGMC
Insured,
5.25%,
7/01/36
...................
6,200,000
6,478,243
Revenue,
L,
Refunding,
NATL
Insured,
5.25%,
7/01/35
......................
1,765,000
1,867,274
Revenue,
L,
Refunding,
AGMC
Insured,
5.25%,
7/01/41
.....................
5,205,000
5,414,711
22,061,485
Total
U.S.
Territories
....................................................................
34,359,929
Total
Municipal
Bonds
(Cost
$936,420,474)
.....................................
962,241,750
a
a
a
a
a
Total
Investments
(Cost
$936,420,474)
99.2%
...................................
$962,241,750
Other
Assets,
less
Liabilities
0.8%
.............................................
7,560,051
Net
Assets
100.0%
...........................................................
$969,801,801
See
Abbreviations
on
page
149
.
a
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
February
28,
2022,
the
aggregate
value
of
these
securities
was
$24,312,509,
representing
2.5%
of
net
assets.
b
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).
c
A
portion
or
all
of
the
security
purchased
on
a
delayed
delivery
basis.
See
Note
1(b).
d
See
Note
7
regarding
defaulted
securities.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
North
Carolina
Tax-Free
Income
Fund
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
96
a
Year
Ended
February
28,
Year
Ended
February
28,
2019
b
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
................................
$11.62
$11.84
$11.30
$11.26
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.21
0.27
0.28
0.15
Net
realized
and
unrealized
gains
(losses)
........................
(0.31)
(0.23)
0.56
0.04
Total
from
investment
operations
.................................
(0.10)
0.04
0.84
0.19
Less
distributions
from:
Net
investment
income
.......................................
(0.21)
(0.26)
(0.30)
(0.15)
Net
asset
value,
end
of
year
....................................
$11.31
$11.62
$11.84
$11.30
Total
return
e
................................................
(0.89)%
0.38%
7.50%
1.77%
Ratios
to
average
net
assets
f
Expenses
g
.................................................
0.82%
0.81%
0.82%
0.83%
Net
investment
income
........................................
1.81%
2.27%
2.48%
2.86%
Supplemental
data
Net
assets,
end
of
year
(000’s)
..................................
$167,474
$145,847
$101,981
$49,192
Portfolio
turnover
rate
.........................................
23.40%
15.09%
15.22%
11.61%
a
For
the
year
ended
February
29.
b
For
the
period
September
10,
2018
(effective
date)
to
February
28,
2019.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
North
Carolina
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
97
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.62
$11.84
$11.30
$11.28
$11.70
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.23
0.29
0.30
0.34
0.35
Net
realized
and
unrealized
gains
(losses)
...........
(0.31)
(0.23)
0.56
0.03
(0.40)
Total
from
investment
operations
....................
(0.08)
0.06
0.86
0.37
(0.05)
Less
distributions
from:
Net
investment
income
..........................
(0.23)
(0.28)
(0.32)
(0.35)
(0.37)
Net
asset
value,
end
of
year
.......................
$11.31
$11.62
$11.84
$11.30
$11.28
Total
return
d
...................................
(0.65)%
0.44%
7.66%
3.32%
(0.45)%
Ratios
to
average
net
assets
Expenses
.....................................
0.67%
e
0.67%
e
0.67%
e
0.68%
e
0.66%
Net
investment
income
...........................
1.97%
2.44%
2.63%
3.01%
3.00%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$462,916
$521,406
$567,825
$577,052
$660,167
Portfolio
turnover
rate
............................
23.40%
15.09%
15.22%
11.61%
10.07%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
North
Carolina
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
98
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.81
$12.04
$11.49
$11.46
$11.88
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.17
0.22
0.24
0.28
0.29
Net
realized
and
unrealized
gains
(losses)
...........
(0.33)
(0.23)
0.56
0.03
(0.41)
Total
from
investment
operations
....................
(0.16)
(0.01)
0.80
0.31
(0.12)
Less
distributions
from:
Net
investment
income
..........................
(0.16)
(0.22)
(0.25)
(0.28)
(0.30)
Net
asset
value,
end
of
year
.......................
$11.49
$11.81
$12.04
$11.49
$11.46
Total
return
d
...................................
(1.36)%
(0.11)%
7.07%
2.78%
(1.00)%
Ratios
to
average
net
assets
Expenses
.....................................
1.21%
e
1.21%
e
1.22%
e
1.23%
e
1.21%
Net
investment
income
...........................
1.40%
1.87%
2.08%
2.46%
2.45%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$42,794
$63,485
$90,244
$105,371
$159,556
Portfolio
turnover
rate
............................
23.40%
15.09%
15.22%
11.61%
10.07%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
North
Carolina
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
99
In
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.61
$11.84
$11.29
$11.27
$11.59
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.25
0.30
0.32
0.35
0.22
Net
realized
and
unrealized
gains
(losses)
...........
(0.31)
(0.23)
0.56
0.03
(0.33)
Total
from
investment
operations
....................
(0.06)
0.07
0.88
0.38
(0.11)
Less
distributions
from:
Net
investment
income
..........................
(0.25)
(0.30)
(0.33)
(0.36)
(0.21)
Net
asset
value,
end
of
year
.......................
$11.30
$11.61
$11.84
$11.29
$11.27
Total
return
....................................
(0.60)%
0.57%
7.90%
3.45%
(0.97)%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.54%
0.54%
0.55%
0.56%
0.56%
Expenses
net
of
waiver
and
payments
by
affiliates
.......
0.53%
d
0.53%
d
0.54%
d
0.54%
d
0.53%
Net
investment
income
...........................
2.10%
2.56%
2.76%
3.15%
3.13%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$23,000
$17,426
$10,948
$7,776
$9,117
Portfolio
turnover
rate
............................
23.40%
15.09%
15.22%
11.61%
10.07%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
North
Carolina
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
100
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.62
$11.84
$11.30
$11.28
$11.70
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.24
0.30
0.31
0.35
0.36
Net
realized
and
unrealized
gains
(losses)
...........
(0.31)
(0.23)
0.56
0.03
(0.40)
Total
from
investment
operations
....................
(0.07)
0.07
0.87
0.38
(0.04)
Less
distributions
from:
Net
investment
income
..........................
(0.24)
(0.29)
(0.33)
(0.36)
(0.38)
Net
asset
value,
end
of
year
.......................
$11.31
$11.62
$11.84
$11.30
$11.28
Total
return
....................................
(0.64)%
0.63%
7.77%
3.42%
(0.36)%
Ratios
to
average
net
assets
Expenses
.....................................
0.57%
d
0.57%
d
0.57%
d
0.58%
d
0.56%
Net
investment
income
...........................
2.06%
2.53%
2.73%
3.11%
3.10%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$132,919
$121,041
$105,851
$84,506
$80,819
Portfolio
turnover
rate
............................
23.40
%
15.09%
15.22%
11.61%
10.07%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments,
February
28,
2022
Franklin
North
Carolina
Tax-Free
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
101
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
98.1%
California
0.3%
California
Municipal
Finance
Authority
,
Revenue
,
2022
A-1
,
4.25
%
,
12/01/37
.......
$
2,300,000
$
2,307,760
Florida
0.7%
Capital
Trust
Agency,
Inc.
,
Kingdom
Development
Obligated
Group,
Revenue,
2021
A-1,
3.75%,
12/01/36
....
4,680,000
4,591,314
a
SHI
-
Lake
Osborne
LLC,
Revenue,
144A,
2021
A-1,
3.68%,
1/01/57
...........
1,500,000
1,342,751
5,934,065
Illinois
0.5%
Metropolitan
Pier
&
Exposition
Authority
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
6/15/50
..
500,000
556,549
State
of
Illinois
,
GO,
2020
B,
5%,
10/01/29
...........................................
1,000,000
1,184,925
GO,
2021
A,
5%,
3/01/34
............................................
2,000,000
2,366,763
4,108,237
New
Jersey
1.0%
New
Jersey
Economic
Development
Authority
,
Revenue
,
2021
QQQ
,
4
%
,
6/15/41
...
1,000,000
1,084,950
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue,
2019
BB,
4%,
6/15/50
.......................................
500,000
531,107
Revenue,
2020
AA,
3%,
6/15/50
.......................................
500,000
465,704
Revenue,
2020
AA,
4%,
6/15/50
.......................................
1,000,000
1,069,967
Revenue,
2021
A,
Refunding,
5%,
6/15/31
...............................
4,000,000
4,828,493
7,980,221
New
York
1.3%
Metropolitan
Transportation
Authority
,
Revenue,
2020
A-1,
4%,
11/15/53
.....................................
1,000,000
1,065,570
Revenue,
2021
A-1,
4%,
11/15/48
.....................................
6,675,000
7,187,541
Revenue,
2021
A-2,
4%,
11/15/41
.....................................
2,200,000
2,399,275
10,652,386
North
Carolina
90.0%
Cape
Fear
Public
Utility
Authority
,
Revenue,
2014
A,
Pre-Refunded,
5%,
6/01/40
............................
2,250,000
2,440,175
Revenue,
2019
A,
Refunding,
4%,
8/01/44
...............................
8,000,000
8,953,490
Charlotte-Mecklenburg
Hospital
Authority
(The)
,
Atrium
Health
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
1/15/40
.......
20,000,000
22,396,458
Atrium
Health
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
1/15/36
.......
5,000,000
6,015,252
Atrium
Health
Obligated
Group,
Revenue,
2022
A,
Refunding,
4%,
1/15/43
.......
2,000,000
2,268,088
City
of
Charlotte
,
COP,
2019
A,
Refunding,
5%,
6/01/44
..................................
8,250,000
10,019,963
COP,
2021
A,
Refunding,
5%,
6/01/24
..................................
1,025,000
1,111,158
Airport,
Revenue,
2019
A,
4%,
7/01/44
..................................
3,550,000
3,920,675
Airport,
Revenue,
2021
A,
Refunding,
4%,
7/01/36
.........................
1,790,000
2,067,481
Airport
Special
Facilities,
Revenue,
2019
A,
5%,
7/01/49
.....................
4,460,000
5,267,229
Airport
Special
Facilities,
Revenue,
2019
B,
4%,
7/01/44
....................
5,515,000
5,990,439
Airport
Special
Facilities,
Revenue,
2021
A,
Refunding,
4%,
7/01/38
............
2,500,000
2,879,117
Airport
Special
Facilities,
Revenue,
2021
A,
Refunding,
4%,
7/01/39
............
3,000,000
3,434,359
Airport
Special
Facilities,
Revenue,
2021
A,
Refunding,
4%,
7/01/40
............
4,500,000
5,142,273
Airport
Special
Facilities,
Revenue,
2021
A,
Refunding,
4%,
7/01/41
............
2,200,000
2,509,984
Storm
Water,
Revenue,
2014,
Refunding,
5%,
12/01/39
.....................
7,970,000
8,718,530
Water
&
Sewer
System,
Revenue,
2015,
Refunding,
5%,
7/01/40
..............
10,000,000
11,125,145
Water
&
Sewer
System,
Revenue,
2018,
Refunding,
4%,
7/01/37
..............
5,000,000
5,665,689
Water
&
Sewer
System,
Revenue,
2020,
Refunding,
2%,
7/01/41
..............
500,000
448,102
Water
&
Sewer
System,
Revenue,
2020,
Refunding,
4%,
7/01/46
..............
6,000,000
6,817,303
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
North
Carolina
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
102
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
North
Carolina
(continued)
City
of
Fayetteville
,
Public
Works
Commission
,
Revenue
,
2018
,
Refunding
,
4
%
,
3/01/41
$
4,015,000
$
4,451,797
City
of
Greensboro
,
GO
,
2018
B
,
5
%
,
10/01/29
.............................
5,000,000
6,076,928
City
of
Raleigh
,
GO,
2016
A,
Refunding,
5%,
9/01/26
...................................
5,000,000
5,801,336
Combined
Enterprise
System,
Revenue,
2016
A,
4%,
3/01/46
.................
5,000,000
5,485,527
Combined
Enterprise
System,
Revenue,
2016
B,
Refunding,
4%,
3/01/34
........
1,000,000
1,111,123
City
of
Salisbury
,
Combined
Enterprise
System
,
Revenue
,
2020
,
Refunding
,
5
%
,
2/01/45
.........................................................
1,000,000
1,208,494
City
of
Winston-Salem
,
Water
&
Sewer
System,
Revenue,
2014
A,
Pre-Refunded,
5%,
6/01/33
..........
2,350,000
2,548,627
Water
&
Sewer
System,
Revenue,
2016
A,
Refunding,
4%,
6/01/34
............
1,350,000
1,486,780
Water
&
Sewer
System,
Revenue,
2016
A,
Refunding,
4%,
6/01/37
............
5,000,000
5,469,736
Water
&
Sewer
System,
Revenue,
2017,
4%,
6/01/47
.......................
10,000,000
10,960,954
County
of
Buncombe
,
Revenue
,
2015
,
Refunding
,
5
%
,
6/01/34
.................
3,000,000
3,333,853
County
of
Dare
,
Revenue,
2021
A,
3%,
6/01/38
........................................
375,000
386,805
Revenue,
2021
A,
3%,
6/01/39
........................................
585,000
600,103
Revenue,
2021
A,
3%,
6/01/40
........................................
250,000
256,029
Revenue,
2021
A,
3%,
6/01/41
........................................
450,000
460,173
County
of
Durham
,
GO,
2019,
4%,
6/01/36
.............................................
500,000
574,221
GO,
2019,
4%,
6/01/37
.............................................
450,000
516,398
GO,
2019,
4%,
6/01/39
.............................................
700,000
799,623
GO,
2021,
Refunding,
5%,
6/01/31
.....................................
750,000
965,239
GO,
2021,
Refunding,
5%,
6/01/32
.....................................
625,000
802,691
County
of
Guilford
,
GO
,
2017
B
,
4
%
,
5/01/33
...............................
5,000,000
5,576,091
County
of
Lincoln
,
Enterprise
System,
Revenue,
2020,
Refunding,
3%,
8/01/38
..................
400,000
412,825
Enterprise
System,
Revenue,
2020,
Refunding,
3%,
8/01/41
..................
480,000
491,052
County
of
Mecklenburg
,
GO,
2015
A,
5%,
4/01/28
............................................
5,000,000
5,544,435
GO,
2017
A,
4%,
4/01/30
............................................
5,000,000
5,592,380
GO,
2019,
5%,
3/01/30
.............................................
5,745,000
7,050,101
County
of
New
Hanover
,
GO,
2021
A,
Refunding,
4%,
8/01/29
...................................
760,000
891,395
GO,
2021
A,
Refunding,
4%,
8/01/30
...................................
605,000
717,156
Revenue,
2021,
Refunding,
5%,
8/01/29
.................................
3,620,000
4,458,762
Revenue,
2021,
Refunding,
5%,
8/01/31
.................................
1,145,000
1,464,703
New
Hanover
Regional
Medical
Center,
Revenue,
2017,
Pre-Refunded,
5%,
10/01/42
.......................................................
5,000,000
5,905,869
New
Hanover
Regional
Medical
Center,
Revenue,
2017,
Pre-Refunded,
5%,
10/01/47
.......................................................
13,565,000
16,022,624
County
of
Union
,
Enterprise
System,
Revenue,
2015,
5%,
6/01/34
..........................
1,000,000
1,125,617
Enterprise
System,
Revenue,
2019,
4%,
6/01/41
..........................
3,200,000
3,592,459
Enterprise
System,
Revenue,
2019,
4%,
6/01/44
..........................
2,325,000
2,596,341
Enterprise
System,
Revenue,
2021,
4%,
6/01/32
..........................
1,050,000
1,231,392
County
of
Wake
,
GO,
2018
A,
5%,
3/01/30
............................................
8,000,000
9,569,591
GO,
2019
A,
5%,
3/01/32
............................................
7,870,000
9,608,169
GO,
2021,
Refunding,
4%,
4/01/36
.....................................
1,650,000
1,944,872
Revenue,
2019,
4%,
9/01/38
.........................................
5,250,000
5,956,703
Revenue,
2021,
3%,
3/01/35
.........................................
5,535,000
5,830,471
Revenue,
2021,
3%,
3/01/36
.........................................
6,000,000
6,289,177
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
North
Carolina
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
103
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
North
Carolina
(continued)
Greenville
Utilities
Commission
,
Revenue
,
2019
,
5
%
,
8/01/44
..................
$
4,750,000
$
5,783,670
Nash
Health
Care
Systems
,
Revenue
,
2012
,
Refunding
,
5
%
,
11/01/41
............
5,000,000
5,036,429
North
Carolina
Capital
Facilities
Finance
Agency
,
Campbell
University,
Inc.,
Revenue,
2021
A,
Refunding,
5%,
10/01/27
..........
400,000
458,423
Campbell
University,
Inc.,
Revenue,
2021
A,
Refunding,
5%,
10/01/28
..........
500,000
579,697
Campbell
University,
Inc.,
Revenue,
2021
A,
Refunding,
5%,
10/01/29
..........
550,000
646,691
Campbell
University,
Inc.,
Revenue,
2021
A,
Refunding,
5%,
10/01/30
..........
500,000
595,060
Campbell
University,
Inc.,
Revenue,
2021
A,
Refunding,
5%,
10/01/31
..........
1,855,000
2,231,684
Campbell
University,
Inc.,
Revenue,
2021
A,
Refunding,
5%,
10/01/33
..........
2,670,000
3,198,417
Campbell
University,
Inc.,
Revenue,
2021
A,
Refunding,
4%,
10/01/34
..........
740,000
813,368
Campbell
University,
Inc.,
Revenue,
2021
A,
Refunding,
4%,
10/01/35
..........
360,000
394,935
Davidson
College
Trustees,
Revenue,
2012,
5%,
3/01/40
....................
4,000,000
4,013,076
Davidson
College
Trustees,
Revenue,
2014,
Refunding,
5%,
3/01/45
...........
3,500,000
3,511,441
Duke
University,
Revenue,
2015
B,
Pre-Refunded,
5%,
10/01/41
..............
13,585,000
15,337,124
Duke
University,
Revenue,
2016
B,
Refunding,
5%,
7/01/42
..................
10,000,000
11,390,093
Duke
University,
Revenue,
2016
B,
Refunding,
4%,
10/01/44
.................
5,085,000
5,515,737
Duke
University,
Revenue,
2016
B,
Refunding,
5%,
10/01/44
.................
11,000,000
12,529,102
High
Point
University,
Revenue,
2021,
Refunding,
4%,
5/01/32
................
1,000,000
1,127,570
High
Point
University,
Revenue,
2021,
Refunding,
4%,
5/01/33
................
2,210,000
2,487,258
High
Point
University,
Revenue,
2021,
Refunding,
4%,
5/01/34
................
1,370,000
1,540,272
Wake
Forest
University,
Revenue,
2016,
Refunding,
4%,
1/01/35
..............
5,000,000
5,408,754
Wake
Forest
University,
Revenue,
2016,
Refunding,
4%,
1/01/38
..............
5,500,000
5,933,022
Wake
Forest
University,
Revenue,
2016,
Refunding,
4%,
1/01/39
..............
5,250,000
5,665,600
Wake
Forest
University,
Revenue,
2018,
4%,
1/01/48
.......................
20,000,000
22,026,292
Wake
Forest
University,
Revenue,
2018,
5%,
1/01/48
.......................
13,500,000
15,757,014
North
Carolina
Central
University
,
Revenue
,
2019
,
4
%
,
4/01/49
.................
1,000,000
1,081,102
North
Carolina
Housing
Finance
Agency
,
Revenue,
41,
GNMA
Insured,
3.55%,
7/01/44
.............................
5,220,000
5,422,269
Revenue,
41,
GNMA
Insured,
3.625%,
7/01/49
............................
8,010,000
8,309,504
Revenue,
42,
GNMA
Insured,
2.45%,
7/01/34
.............................
880,000
877,374
Revenue,
42,
GNMA
Insured,
2.625%,
7/01/39
............................
3,585,000
3,596,565
Revenue,
42,
GNMA
Insured,
2.85%,
1/01/43
.............................
3,135,000
3,149,112
Revenue,
43,
GNMA
Insured,
2.8%,
1/01/40
..............................
5,625,000
5,680,125
Revenue,
43,
GNMA
Insured,
2.95%,
7/01/43
.............................
2,580,000
2,624,518
Revenue,
44,
3%,
7/01/46
...........................................
2,975,000
2,984,458
Revenue,
45,
Refunding,
GNMA
Insured,
2.2%,
7/01/40
.....................
1,905,000
1,783,275
Revenue,
46-A,
GNMA
Insured,
1.55%,
1/01/30
...........................
2,200,000
2,097,603
Revenue,
46-A,
GNMA
Insured,
1.75%,
1/01/31
...........................
1,025,000
983,731
North
Carolina
Medical
Care
Commission
,
Caromont
Health
Obligated
Group,
Revenue,
2021
A,
4%,
2/01/36
.............
1,675,000
1,939,823
Duke
University
Health
System,
Inc.,
Revenue,
2012
A,
Pre-Refunded,
5%,
6/01/42
10,000,000
10,110,240
Duke
University
Health
System,
Inc.,
Revenue,
2016
D,
Refunding,
4%,
6/01/42
...
7,000,000
7,551,228
EveryAge
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
9/01/41
..........
1,090,000
1,183,255
EveryAge
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
9/01/47
..........
1,965,000
2,096,189
EveryAge
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
9/01/51
..........
960,000
1,015,209
Forest
at
Duke,
Inc.
Obligated
Group,
Revenue,
2021,
4%,
9/01/33
............
180,000
201,158
Forest
at
Duke,
Inc.
Obligated
Group,
Revenue,
2021,
4%,
9/01/34
............
185,000
206,150
Forest
at
Duke,
Inc.
Obligated
Group,
Revenue,
2021,
4%,
9/01/41
............
920,000
1,007,047
Forest
at
Duke,
Inc.
Obligated
Group,
Revenue,
2021,
4%,
9/01/46
............
950,000
1,035,116
Forest
at
Duke,
Inc.
Obligated
Group,
Revenue,
2021,
4%,
9/01/51
............
1,670,000
1,814,318
Friends
Homes
Obligated
Group,
Revenue,
2020
A,
4%,
9/01/50
..............
3,000,000
3,118,566
Novant
Health
Obligated
Group,
Revenue,
2013
A,
Refunding,
5%,
11/01/46
.....
20,000,000
20,500,750
Novant
Health
Obligated
Group,
Revenue,
2019
A,
4%,
11/01/49
..............
5,115,000
5,718,030
Novant
Health
Obligated
Group,
Revenue,
2019
A,
4%,
11/01/52
..............
7,640,000
8,489,972
Pines
at
Davidson,
Inc.
Obligated
Group,
Revenue,
2019
A,
5%,
1/01/49
........
5,000,000
5,391,450
Plantation
Village,
Inc.
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
1/01/41
1,020,000
1,096,829
Plantation
Village,
Inc.
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
1/01/52
3,510,000
3,705,508
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
North
Carolina
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
104
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
North
Carolina
(continued)
North
Carolina
Medical
Care
Commission,
(continued)
Presbyterian
Homes
Obligated
Group,
Revenue,
2016
C,
Refunding,
5%,
10/01/31
$
5,000,000
$
5,475,683
Presbyterian
Homes
Obligated
Group,
Revenue,
2020
A,
4%,
10/01/45
.........
1,000,000
1,084,394
Presbyterian
Homes
Obligated
Group,
Revenue,
2020
A,
5%,
10/01/45
.........
1,800,000
2,069,773
Presbyterian
Homes
Obligated
Group,
Revenue,
2020
A,
4%,
10/01/50
.........
1,350,000
1,456,444
Presbyterian
Homes
Obligated
Group,
Revenue,
2020
A,
5%,
10/01/50
.........
1,400,000
1,601,907
Rex
Hospital,
Inc.
Obligated
Group,
Revenue,
2020
A,
4%,
7/01/49
............
4,000,000
4,384,776
United
Methodist
Retirement
Homes,
Inc.
Obligated
Group
(The),
Revenue,
2017
A,
Pre-Refunded,
5%,
10/01/37
........................................
200,000
217,805
United
Methodist
Retirement
Homes,
Inc.
Obligated
Group
(The),
Revenue,
2017
A,
Pre-Refunded,
5%,
10/01/42
........................................
2,250,000
2,450,308
United
Methodist
Retirement
Homes,
Inc.
Obligated
Group
(The),
Revenue,
2017
A,
Pre-Refunded,
5%,
10/01/47
........................................
2,540,000
2,766,125
Vidant
Health
Obligated
Group,
Revenue,
2015,
Refunding,
5%,
6/01/40
........
5,000,000
5,507,551
Wake
Forest
Baptist
Obligated
Group,
Revenue,
2019
A,
5%,
12/01/32
.........
1,000,000
1,185,233
Wake
Forest
Baptist
Obligated
Group,
Revenue,
2019
A,
5%,
12/01/33
.........
1,000,000
1,184,316
WakeMed
Obligated
Group,
Revenue,
2012
A,
Pre-Refunded,
5%,
10/01/38
......
5,000,000
5,120,110
North
Carolina
Municipal
Power
Agency
No.
1
,
Revenue
,
2015
A
,
Refunding
,
5
%
,
1/01/32
.........................................................
4,200,000
4,740,071
North
Carolina
State
Education
Assistance
Authority
,
Revenue,
Senior
Lien,
2020
A,
5%,
6/01/25
..............................
125,000
136,570
Revenue,
Senior
Lien,
2020
A,
5%,
6/01/26
..............................
300,000
334,470
Revenue,
Senior
Lien,
2020
A,
5%,
6/01/27
..............................
450,000
510,510
Revenue,
Senior
Lien,
2020
A,
5%,
6/01/28
..............................
500,000
575,125
Revenue,
Senior
Lien,
2020
A,
5%,
6/01/29
..............................
350,000
407,291
Revenue,
Senior
Lien,
2020
A,
3.125%,
6/01/39
...........................
2,150,000
2,088,150
North
Carolina
State
University
at
Raleigh
,
Revenue
,
2013
A
,
Pre-Refunded
,
5
%
,
10/01/42
.....................................................
8,980,000
9,536,931
North
Carolina
Turnpike
Authority
,
Revenue,
2016
A,
Refunding,
5%,
7/01/47
...............................
2,500,000
2,757,301
Revenue,
2018
A,
Refunding,
4%,
1/01/36
...............................
9,875,000
11,043,709
Revenue,
2018
A,
Refunding,
4%,
1/01/39
...............................
9,815,000
10,936,319
Revenue,
2021,
Refunding,
5%,
7/01/35
.................................
1,300,000
1,652,889
Revenue,
2021,
Refunding,
5%,
7/01/36
.................................
1,750,000
2,220,943
Revenue,
2021,
Refunding,
5%,
7/01/37
.................................
1,770,000
2,242,715
Revenue,
2021,
Refunding,
5%,
7/01/38
.................................
1,250,000
1,580,644
Revenue,
2021,
Refunding,
5%,
7/01/39
.................................
1,500,000
1,888,652
Revenue,
2021,
Refunding,
5%,
7/01/40
.................................
1,270,000
1,596,249
Revenue,
2021,
Refunding,
5%,
7/01/41
.................................
2,000,000
2,509,855
Revenue,
Senior
Lien,
2017,
Refunding,
AGMC
Insured,
5%,
1/01/31
...........
1,000,000
1,151,127
Revenue,
Senior
Lien,
2017,
Refunding,
AGMC
Insured,
5%,
1/01/39
...........
1,200,000
1,374,525
Revenue,
Senior
Lien,
2019,
AGMC
Insured,
5%,
1/01/49
...................
15,430,000
18,470,006
Raleigh
Durham
Airport
Authority
,
Revenue,
2015
A,
Refunding,
5%,
5/01/27
...............................
350,000
387,903
Revenue,
2015
A,
Refunding,
5%,
5/01/29
...............................
1,000,000
1,109,276
Revenue,
2015
A,
Refunding,
5%,
5/01/30
...............................
550,000
609,561
Revenue,
2020
A,
Refunding,
5%,
5/01/35
...............................
2,250,000
2,690,380
State
of
North
Carolina
,
GO,
2016
A,
Refunding,
5%,
6/01/25
...................................
4,000,000
4,474,624
GO,
2019
B,
5%,
6/01/29
............................................
2,500,000
3,090,079
GO,
2020
A,
5%,
6/01/30
............................................
2,500,000
3,153,388
GO,
2020
A,
5%,
6/01/31
............................................
2,500,000
3,142,804
Revenue,
2020
B,
4%,
5/01/35
........................................
2,750,000
3,171,113
Town
of
Cary
,
Combined
Utility
Systems,
Revenue,
2017,
Pre-Refunded,
5%,
12/01/41
........
1,710,000
1,994,140
Combined
Utility
Systems,
Revenue,
2017
B,
Refunding,
4%,
12/01/42
.........
8,000,000
8,938,262
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
North
Carolina
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
105
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
North
Carolina
(continued)
Town
of
Oak
Island
,
Enterprise
System
,
Revenue
,
2017
,
Refunding
,
AGMC
Insured
,
5
%
,
6/01/33
......................................................
$
1,000,000
$
1,165,341
University
of
North
Carolina
at
Chapel
Hill
,
Revenue,
2021
B,
Refunding,
5%,
12/01/33
..............................
2,755,000
3,565,659
Revenue,
2021
B,
Refunding,
5%,
12/01/34
..............................
1,225,000
1,582,257
Revenue,
2021
B,
Refunding,
5%,
12/01/36
..............................
1,500,000
1,931,429
Hospitals
at
Chapel
Hill,
Revenue,
2016,
5%,
2/01/46
.......................
4,265,000
4,817,697
Hospitals
at
Chapel
Hill,
Revenue,
2019,
5%,
2/01/49
.......................
6,860,000
9,487,576
University
of
North
Carolina
at
Charlotte
(The)
,
Revenue,
2014,
Pre-Refunded,
5%,
4/01/43
..............................
5,000,000
5,393,475
Revenue,
2015,
Pre-Refunded,
5%,
4/01/45
..............................
9,450,000
10,497,141
Revenue,
2017,
5%,
10/01/47
........................................
10,000,000
11,727,562
Revenue,
2017
A,
Refunding,
4%,
10/01/40
..............................
2,250,000
2,496,275
Revenue,
2020
A,
Refunding,
5%,
10/01/38
..............................
1,145,000
1,395,054
Revenue,
2020
A,
Refunding,
4%,
10/01/40
..............................
290,000
327,298
University
of
North
Carolina
at
Greensboro
,
Revenue,
2014,
Refunding,
5%,
4/01/39
.................................
3,500,000
3,770,542
Revenue,
2017,
Refunding,
4%,
4/01/35
.................................
1,205,000
1,342,345
Revenue,
2017,
Refunding,
4%,
4/01/36
.................................
1,000,000
1,110,174
Revenue,
2018,
5%,
4/01/30
.........................................
1,085,000
1,285,841
Revenue,
2018,
5%,
4/01/43
.........................................
2,500,000
2,919,309
University
of
North
Carolina
at
Wilmington
,
Revenue
,
2015
,
Refunding
,
5
%
,
6/01/37
.
3,000,000
3,322,696
University
of
North
Carolina
System
,
Appalachian
State
University
,
Revenue
,
2008
A
,
AGMC
Insured
,
5
%
,
10/01/33
.........................................
160,000
160,576
Western
Carolina
University
,
Revenue,
2020
B,
3%,
4/01/36
........................................
1,000,000
1,043,631
Revenue,
2020
B,
4%,
4/01/45
........................................
5,000,000
5,571,273
Revenue,
2020
B,
4%,
4/01/50
........................................
6,835,000
7,564,080
746,607,973
South
Carolina
0.6%
South
Carolina
Jobs-Economic
Development
Authority
,
a
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
1,600,000
1,497,201
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
1,600,000
1,495,530
a
South
Carolina
State
Housing
Finance
&
Development
Authority
,
Garden
Oaks
LP
,
Revenue
,
144A,
2021
A
,
4.2
%
,
12/01/39
................................
2,500,000
2,327,674
5,320,405
Texas
0.6%
a
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
2,100,000
1,948,135
Lake
Houston
Redevelopment
Authority
,
City
of
Houston
Reinvestment
Zone
No.
10,
Revenue,
2021,
Refunding,
4%,
9/01/32
200,000
221,606
City
of
Houston
Reinvestment
Zone
No.
10,
Revenue,
2021,
Refunding,
4%,
9/01/33
200,000
221,364
a
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
A-2
,
5
%
,
12/01/52
............
2,800,000
2,809,029
5,200,134
Washington
0.2%
a
Washington
State
Housing
Finance
Commission
,
Madison
at
Rivers
Edge
Apartments
LLC
,
Revenue
,
144A,
2021
A
,
3.65
%
,
1/01/37
............................
1,600,000
1,496,790
Wisconsin
0.9%
a
Public
Finance
Authority
,
Revenue,
144A,
2022,
B-1,
4%,
12/28/44
................................
1,600,000
1,541,623
Affordable
Housing
Preservation
Corp.
(The),
Revenue,
144A,
2021,
5.25%,
12/01/22
.......................................................
5,600,000
5,574,236
7,115,859
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
North
Carolina
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
106
s
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
U.S.
Territories
2.0%
Puerto
Rico
2.0%
Commonwealth
of
Puerto
Rico
,
GO
,
NATL
Insured
,
5.5
%
,
7/01/29
...............
$
600,000
$
630,259
Puerto
Rico
Electric
Power
Authority
,
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/32
....................
1,500,000
1,588,474
b
Revenue,
XX-RSA-1,
5.25%,
7/01/40
...................................
4,120,000
4,269,350
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue,
2007
N,
Refunding,
NATL
Insured,
5.25%,
7/01/33
.................
990,000
1,049,096
Revenue,
2007
N,
Refunding,
AGMC
Insured,
5.25%,
7/01/36
................
300,000
313,464
Revenue,
L,
Refunding,
NATL
Insured,
5.25%,
7/01/35
......................
5,350,000
5,660,007
Revenue,
L,
Refunding,
AGMC
Insured,
5.25%,
7/01/41
.....................
2,000,000
2,080,581
Puerto
Rico
Industrial
Tourist
Educational
Medical
&
Environmental
Control
Facilities
Financing
Authority
,
Hospital
Auxilio
Mutuo
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
7/01/33
..
440,000
534,530
Hospital
Auxilio
Mutuo
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
7/01/41
..
220,000
240,930
16,366,691
Total
U.S.
Territories
....................................................................
16,366,691
Total
Municipal
Bonds
(Cost
$796,559,799)
.....................................
813,090,521
a
a
a
a
Short
Term
Investments
1.1%
Municipal
Bonds
1.1%
North
Carolina
1.1%
c
Charlotte-Mecklenburg
Hospital
Authority
(The)
,
Atrium
Health
Obligated
Group,
Revenue,
2007
C,
Refunding,
SPA
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
0.06%,
1/15/37
..........................
2,300,000
2,300,000
Atrium
Health
Obligated
Group,
Revenue,
2018
H,
SPA
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
0.06%,
1/15/48
.................................
3,000,000
3,000,000
c
North
Carolina
Medical
Care
Commission
,
Moses
H
Cone
Memorial
Hospital
Obligated
Group
,
Revenue
,
2001
B
,
SPA
Bank
of
Montreal
,
Daily
VRDN
and
Put
,
0.09
%
,
10/01/35
........................................................
4,000,000
4,000,000
9,300,000
Total
Municipal
Bonds
(Cost
$9,300,000)
.......................................
9,300,000
Total
Short
Term
Investments
(Cost
$9,300,000
)
.................................
9,300,000
a
Total
Investments
(Cost
$805,859,799)
99.2%
...................................
$822,390,521
Other
Assets,
less
Liabilities
0.8%
.............................................
6,712,895
Net
Assets
100.0%
...........................................................
$829,103,416
See
Abbreviations
on
page
149
.
a
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
February
28,
2022,
the
aggregate
value
of
these
securities
was
$18,537,439,
representing
2.2%
of
net
assets.
b
See
Note
7
regarding
defaulted
securities.
c
Variable
rate
demand
notes
(VRDNs)
are
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.
Unless
otherwise
noted,
the
coupon
rate
is
determined
based
on
factors
including
supply
and
demand,
underlying
credit,
tax
treatment,
and
current
short
term
rates.
The
coupon
rate
shown
represents
the
rate
at
period
end.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Virginia
Tax-Free
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
107
a
Year
Ended
February
28,
Year
Ended
February
28,
2019
b
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
................................
$11.13
$11.42
$10.92
$10.87
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.19
0.22
0.28
0.15
Net
realized
and
unrealized
gains
(losses)
........................
(0.34)
(0.29)
0.52
0.05
Total
from
investment
operations
.................................
(0.15)
(0.07)
0.80
0.20
Less
distributions
from:
Net
investment
income
.......................................
(0.19)
(0.22)
(0.30)
(0.15)
Net
asset
value,
end
of
year
....................................
$10.79
$11.13
$11.42
$10.92
Total
return
e
................................................
(1.38)%
(0.58)%
7.40%
1.90%
Ratios
to
average
net
assets
f
Expenses
g
.................................................
0.84%
0.84%
0.84%
0.84%
Net
investment
income
........................................
1.71%
1.97%
2.54%
3.01%
Supplemental
data
Net
assets,
end
of
year
(000’s)
..................................
$108,135
$107,395
$77,058
$39,565
Portfolio
turnover
rate
.........................................
34.49%
31.54%
14.44%
9.60%
a
For
the
year
ended
February
29.
b
For
the
period
September
10,
2018
(effective
date)
to
February
28,
2019.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Virginia
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
108
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.12
$11.42
$10.91
$10.91
$11.31
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.21
0.24
0.30
0.34
0.35
Net
realized
and
unrealized
gains
(losses)
...........
(0.33)
(0.30)
0.52
—
d
(0.39)
Total
from
investment
operations
....................
(0.12)
(0.06)
0.82
0.34
(0.04)
Less
distributions
from:
Net
investment
income
..........................
(0.21)
(0.24)
(0.31)
(0.34)
(0.36)
Net
asset
value,
end
of
year
.......................
$10.79
$11.12
$11.42
$10.91
$10.91
Total
return
e
...................................
(1.15)%
(0.52)%
7.66%
3.22%
(0.34)%
Ratios
to
average
net
assets
Expenses
.....................................
0.69%
f
0.69%
f
0.69%
f
0.69%
f
0.68%
g
Net
investment
income
...........................
1.86%
2.15%
2.69%
3.16%
3.15%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$316,275
$353,874
$398,547
$402,739
$454,423
Portfolio
turnover
rate
............................
34.49%
31.54%
14.44%
9.60%
9.87%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Amount
rounds
to
less
than
$0.01
per
share.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%
.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Virginia
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
109
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.32
$11.62
$11.10
$11.09
$11.49
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.15
0.18
0.24
0.29
0.30
Net
realized
and
unrealized
gains
(losses)
...........
(0.34)
(0.30)
0.54
—
d
(0.40)
Total
from
investment
operations
....................
(0.19)
(0.12)
0.78
0.29
(0.10)
Less
distributions
from:
Net
investment
income
..........................
(0.15)
(0.18)
(0.26)
(0.28)
(0.30)
Net
asset
value,
end
of
year
.......................
$10.98
$11.32
$11.62
$11.10
$11.09
Total
return
e
...................................
(1.76)%
(1.05)%
7.07%
2.68%
(0.89)%
Ratios
to
average
net
assets
Expenses
.....................................
1.23%
f
1.24%
f
1.24%
f
1.24%
f
1.23%
g
Net
investment
income
...........................
1.27%
1.58%
2.14%
2.61%
2.60%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$20,687
$38,151
$52,357
$62,041
$90,666
Portfolio
turnover
rate
............................
34.49%
31.54%
14.44%
9.60%
9.87%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Amount
rounds
to
less
than
$0.01
per
share.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Virginia
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
110
a
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2022
2021
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.13
$11.43
$10.92
$10.91
$11.25
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.22
0.25
0.32
0.36
0.22
Net
realized
and
unrealized
gains
(losses)
...........
(0.32)
(0.29)
0.52
0.01
(0.35)
Total
from
investment
operations
....................
(0.10)
(0.04)
0.84
0.37
(0.13)
Less
distributions
from:
Net
investment
income
..........................
(0.23)
(0.26)
(0.33)
(0.36)
(0.21)
Net
asset
value,
end
of
year
.......................
$10.80
$11.13
$11.43
$10.92
$10.91
Total
return
e
...................................
(1.00)%
(0.38)%
7.80%
3.44%
(1.14)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
......
0.56%
0.57%
0.56%
0.57%
0.57%
Expenses
net
of
waiver
and
payments
by
affiliates
.......
0.55%
g
0.55%
g
0.55%
g
0.55%
g
0.54%
Net
investment
income
...........................
2.00%
2.27%
2.83%
3.30%
3.29%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$7,778
$6,812
$5,829
$4,947
$5,028
Portfolio
turnover
rate
............................
34.49%
31.54%
14.44%
9.60%
9.87%
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Virginia
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
111
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.13
$11.43
$10.92
$10.92
$11.31
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.22
0.25
0.31
0.35
0.36
Net
realized
and
unrealized
gains
(losses)
...........
(0.33)
(0.30)
0.53
0.01
(0.38)
Total
from
investment
operations
....................
(0.11)
(0.05)
0.84
0.36
(0.02)
Less
distributions
from:
Net
investment
income
..........................
(0.22)
(0.25)
(0.33)
(0.36)
(0.37)
Net
asset
value,
end
of
year
.......................
$10.80
$11.13
$11.43
$10.92
$10.92
Total
return
....................................
(1.05)%
(0.42)%
7.76%
3.32%
(0.15)%
Ratios
to
average
net
assets
Expenses
.....................................
0.59%
d
0.59%
d
0.59%
d
0.59%
d
0.58%
e
Net
investment
income
...........................
1.96%
2.23%
2.79%
3.26%
3.25%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$138,033
$128,837
$109,844
$84,880
$85,293
Portfolio
turnover
rate
............................
34.49%
31.54%
14.44%
9.60%
9.87%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments,
February
28,
2022
Franklin
Virginia
Tax-Free
Income
Fund
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
112
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
95.7%
California
0.2%
California
Municipal
Finance
Authority
,
Revenue
,
2022
A-1
,
4.25
%
,
12/01/37
.......
$
1,000,000
$
1,003,374
Florida
0.7%
Capital
Trust
Agency,
Inc.
,
Kingdom
Development
Obligated
Group,
Revenue,
2021
A-1,
3.75%,
12/01/36
....
3,456,000
3,390,509
a
SHI
-
Lake
Osborne
LLC,
Revenue,
144A,
2021
A-1,
3.68%,
1/01/57
...........
1,100,000
984,684
4,375,193
Illinois
0.5%
Metropolitan
Pier
&
Exposition
Authority
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
6/15/50
..
1,500,000
1,669,645
State
of
Illinois
,
GO
,
2020
B
,
5
%
,
10/01/29
................................
1,000,000
1,184,925
2,854,570
New
Jersey
0.9%
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue,
2019
BB,
4%,
6/15/50
.......................................
500,000
531,107
Revenue,
2021
A,
Refunding,
5%,
6/15/31
...............................
3,250,000
3,923,151
Revenue,
2021
A,
Refunding,
4%,
6/15/36
...............................
1,000,000
1,100,643
5,554,901
New
York
0.3%
Metropolitan
Transportation
Authority
,
Revenue,
2021
A-1,
4%,
11/15/46
.....................................
550,000
593,726
Revenue,
2021
A-2,
4%,
11/15/41
.....................................
800,000
872,463
1,466,189
South
Carolina
0.7%
South
Carolina
Jobs-Economic
Development
Authority
,
a
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
1,200,000
1,122,901
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
1,200,000
1,121,647
a
South
Carolina
State
Housing
Finance
&
Development
Authority
,
Garden
Oaks
LP
,
Revenue
,
144A,
2021
A
,
4.2
%
,
12/01/39
................................
2,000,000
1,862,139
4,106,687
Texas
0.7%
a
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
1,600,000
1,484,293
Lake
Houston
Redevelopment
Authority
,
City
of
Houston
Reinvestment
Zone
No.
10,
Revenue,
2021,
Refunding,
5%,
9/01/28
225,000
260,536
City
of
Houston
Reinvestment
Zone
No.
10,
Revenue,
2021,
Refunding,
5%,
9/01/29
250,000
293,423
a
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
A-2
,
5
%
,
12/01/52
............
2,100,000
2,106,772
4,145,024
Virginia
82.4%
Albemarle
County
Economic
Development
Authority
,
Westminster
Canterbury
of
the
Blue
Ridge
Obligated
Group,
Revenue,
2022
A,
Refunding,
4%,
6/01/30
............................................
1,120,000
1,248,004
Westminster
Canterbury
of
the
Blue
Ridge
Obligated
Group,
Revenue,
2022
A,
Refunding,
4%,
6/01/31
............................................
1,165,000
1,306,400
Westminster
Canterbury
of
the
Blue
Ridge
Obligated
Group,
Revenue,
2022
A,
Refunding,
4%,
6/01/32
............................................
1,105,000
1,235,608
Westminster
Canterbury
of
the
Blue
Ridge
Obligated
Group,
Revenue,
2022
A,
Refunding,
4%,
6/01/33
............................................
1,260,000
1,404,465
Westminster
Canterbury
of
the
Blue
Ridge
Obligated
Group,
Revenue,
2022
A,
Refunding,
4%,
6/01/42
............................................
2,725,000
2,982,141
Westminster
Canterbury
of
the
Blue
Ridge
Obligated
Group,
Revenue,
2022
A,
Refunding,
4%,
6/01/49
............................................
2,800,000
3,029,915
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Virginia
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
113
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Virginia
(continued)
Albemarle
County
Economic
Development
Authority,
(continued)
b
Westminster
Canterbury
of
the
Blue
Ridge
Obligated
Group,
Revenue,
2022
B,
Refunding,
4%,
6/01/54
............................................
$
5,215,000
$
5,409,553
Alexandria
Industrial
Development
Authority
,
Goodwin
House,
Inc.
Obligated
Group,
Revenue,
2015,
Refunding,
5%,
10/01/45
..
975,000
1,057,272
Protestant
Episcopal
High
School
in
Virginia,
Revenue,
2021
C,
Refunding,
4%,
1/01/46
........................................................
2,450,000
2,735,179
Arlington
County
Industrial
Development
Authority
,
Virginia
Hospital
Center
Arlington
Health
System,
Revenue,
2020,
Refunding,
4%,
7/01/45
........................................................
2,000,000
2,247,708
Virginia
Hospital
Center
Arlington
Health
System,
Revenue,
2020,
Refunding,
3.75%,
7/01/50
........................................................
10,350,000
10,995,234
Chesapeake
Hospital
Authority
,
Chesapeake
Hospital
Authority
Obligated
Group,
Revenue,
2019,
Refunding,
4%,
7/01/39
........................................................
1,000,000
1,109,129
Chesapeake
Hospital
Authority
Obligated
Group,
Revenue,
2019,
Refunding,
4%,
7/01/43
........................................................
4,000,000
4,407,502
City
of
Hopewell
,
Sewer
System
,
Revenue
,
2011
A
,
Refunding
,
5
%
,
7/15/42
.......
4,850,000
4,864,416
City
of
Norfolk
,
GO,
2013
A,
Pre-Refunded,
5%,
8/01/32
................................
5,845,000
6,173,635
Water,
Revenue,
2018,
5%,
11/01/43
...................................
6,920,000
8,054,243
Water,
Revenue,
2018,
5%,
11/01/47
...................................
6,925,000
7,999,725
City
of
Richmond
,
Public
Utility,
Revenue,
2013
A,
Pre-Refunded,
5%,
1/15/43
..................
10,000,000
10,361,338
Public
Utility,
Revenue,
2016
A,
Refunding,
5%,
1/15/33
.....................
10,000,000
11,334,567
Commonwealth
of
Virginia
,
GO,
2020
A,
4%,
6/01/30
............................................
2,710,000
3,195,962
GO,
2020
A,
4%,
6/01/31
............................................
1,940,000
2,281,647
County
of
Arlington
,
GO
,
2019
,
4
%
,
6/15/34
................................
2,000,000
2,317,297
County
of
Fairfax
,
GO,
2020
A,
Refunding,
5%,
10/01/37
..................................
1,980,000
2,468,397
Sewer,
Revenue,
2017,
5%,
7/15/37
....................................
2,760,000
3,242,993
County
of
Loudoun
,
GO
,
2021
B
,
Refunding
,
4
%
,
12/01/31
....................
1,755,000
2,127,059
Fairfax
County
Economic
Development
Authority
,
Revenue,
2017,
5%,
4/01/42
.........................................
5,085,000
5,833,442
Goodwin
House,
Inc.
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
10/01/36
4,865,000
5,298,076
Goodwin
House,
Inc.
Obligated
Group,
Revenue,
2016
A,
Refunding,
4%,
10/01/42
1,500,000
1,580,126
Fairfax
County
Industrial
Development
Authority
,
Inova
Health
System
Obligated
Group
,
Revenue
,
2014
A
,
5
%
,
5/15/44
..................................
2,500,000
2,702,300
Fairfax
County
Water
Authority
,
Revenue,
2017,
Refunding,
5%,
4/01/43
.................................
3,510,000
4,063,445
Revenue,
2017,
Refunding,
5%,
4/01/47
.................................
5,000,000
5,756,845
Farmville
Industrial
Development
Authority
,
Elwood
Place
LLC,
Revenue,
2021,
AGMC
Insured,
5.375%,
7/01/53
...........
5,000,000
5,957,770
Longwood
Housing
Foundation
LLC,
Revenue,
2018
A,
Refunding,
5%,
1/01/48
...
5,000,000
5,580,558
Hampton
Roads
Sanitation
District
,
Revenue,
2016
A,
Pre-Refunded,
5%,
8/01/31
............................
6,200,000
7,151,134
Revenue,
2016
A,
Pre-Refunded,
5%,
8/01/33
............................
5,115,000
5,899,686
Revenue,
2016
A,
Pre-Refunded,
5%,
8/01/43
............................
11,840,000
13,656,359
Hampton
Roads
Transportation
Accountability
Commission
,
Revenue,
Senior
Lien,
2018
A,
5%,
7/01/48
..............................
20,000,000
23,585,266
Revenue,
Senior
Lien,
2020
A,
5%,
7/01/50
..............................
4,000,000
4,840,780
Revenue,
Senior
Lien,
2020
A,
5%,
7/01/60
..............................
3,000,000
3,612,909
Revenue,
Senior
Lien,
2020
A,
5.25%,
7/01/60
............................
4,450,000
5,443,073
Henrico
County
Economic
Development
Authority
,
Revenue,
2020,
Refunding,
4%,
10/01/40
................................
500,000
548,593
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Virginia
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
114
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Virginia
(continued)
Henrico
County
Economic
Development
Authority,
(continued)
Revenue,
2020,
Refunding,
4%,
10/01/45
................................
$
725,000
$
790,735
Revenue,
2020,
Refunding,
4%,
10/01/50
................................
1,500,000
1,629,966
Bon
Secours
Health
System,
Inc.
Obligated
Group,
Revenue,
2013
C,
Pre-Refunded,
5%,
11/01/30
...................................................
5,000,000
5,139,400
Lexington
Industrial
Development
Authority
,
Lexington
Retirement
Community
Obligated
Group,
Revenue,
2017
A,
5%,
1/01/42
2,000,000
2,127,237
b
Lexington
Retirement
Community
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
1/01/38
........................................................
690,000
722,560
b
Lexington
Retirement
Community
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
1/01/42
........................................................
1,120,000
1,163,833
b
Lexington
Retirement
Community
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
1/01/48
........................................................
2,315,000
2,374,298
Washington
&
Lee
University
(The),
Revenue,
2018
A,
Refunding,
5%,
1/01/35
....
1,105,000
1,308,866
Washington
&
Lee
University
(The),
Revenue,
2018
A,
Refunding,
5%,
1/01/48
....
1,500,000
1,747,182
Loudoun
County
Sanitation
Authority
,
Revenue
,
2015
A
,
Refunding
,
5
%
,
1/01/29
....
4,770,000
5,262,315
Lynchburg
Economic
Development
Authority
,
Centra
Health
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
1/01/47
......
4,500,000
5,068,125
Centra
Health
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
1/01/47
........
2,350,000
2,586,971
Centra
Health
Obligated
Group,
Revenue,
2021,
Refunding,
3%,
1/01/51
........
2,000,000
1,867,084
Centra
Health
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
1/01/55
........
5,000,000
5,457,690
Montgomery
County
Economic
Development
Authority
,
Virginia
Tech
Foundation,
Inc.,
Revenue,
2019
A,
4%,
6/01/36
................
1,200,000
1,365,019
Virginia
Tech
Foundation,
Inc.,
Revenue,
2019
A,
4%,
6/01/37
................
500,000
566,511
Virginia
Tech
Foundation,
Inc.,
Revenue,
2019
A,
4%,
6/01/38
................
1,750,000
1,979,496
Norfolk
Airport
Authority
,
Revenue,
2019,
5%,
7/01/37
.........................................
1,000,000
1,194,743
Revenue,
2019,
5%,
7/01/39
.........................................
800,000
952,701
Revenue,
2019,
5%,
7/01/43
.........................................
2,925,000
3,450,202
Northern
Virginia
Transportation
Authority
,
Special
Tax
,
2014
,
5
%
,
6/01/33
.........
3,000,000
3,241,721
Prince
Edward
County
Industrial
Development
Authority
,
President
and
Trustees
of
Hampden-Sydney
College
,
Revenue
,
2018
,
5
%
,
9/01/48
....................
2,050,000
2,365,969
Prince
William
County
Industrial
Development
Authority
,
Novant
Health
Obligated
Group
,
Revenue
,
2013
B
,
Pre-Refunded
,
5
%
,
11/01/46
.....................
10,000,000
10,278,800
Riverside
Regional
Jail
Authority
,
Revenue
,
2015
,
Refunding
,
5
%
,
7/01/31
.........
6,215,000
6,809,680
Salem
Economic
Development
Authority
,
Roanoke
College
,
Revenue
,
2020
,
Refunding
,
5
%
,
4/01/49
......................................................
925,000
1,070,351
Stafford
County
&
Staunton
Industrial
Development
Authority
,
Revenue
,
2007
E
,
AGMC
Insured
,
5
%
,
8/01/37
...............................................
960,000
962,529
Upper
Occoquan
Sewage
Authority
,
Revenue
,
2016
B
,
Refunding
,
4
%
,
7/01/35
.....
6,165,000
6,746,771
Virginia
Beach
Development
Authority
,
Westminster-Canterbury
on
Chesapeake
Bay
Obligated
Group,
Revenue,
2018,
Refunding,
5%,
9/01/40
............................................
1,750,000
1,905,318
Westminster-Canterbury
on
Chesapeake
Bay
Obligated
Group,
Revenue,
2018,
Refunding,
5%,
9/01/44
............................................
2,215,000
2,402,302
Virginia
College
Building
Authority
,
Revenue,
2016
A,
Pre-Refunded,
5%,
9/01/27
............................
75,000
86,523
Revenue,
2016
A,
5%,
9/01/27
........................................
3,925,000
4,535,462
Revenue,
2016
A,
Refunding,
4%,
2/01/30
...............................
7,000,000
7,622,591
Revenue,
2020
A,
4%,
2/01/38
........................................
5,000,000
5,719,230
Revenue,
2021,
Refunding,
4%,
6/01/36
.................................
2,750,000
2,973,938
Revenue,
2021,
Refunding,
3%,
6/01/41
.................................
4,800,000
4,522,368
Revenue,
2021,
Refunding,
4%,
6/01/46
.................................
3,725,000
3,946,118
Randolph-Macon
College,
Revenue,
2021
A,
Refunding,
3%,
1/15/39
...........
795,000
809,330
Randolph-Macon
College,
Revenue,
2021
A,
Refunding,
2.25%,
1/15/40
........
450,000
401,954
Randolph-Macon
College,
Revenue,
2021
A,
Refunding,
3%,
1/15/41
...........
500,000
503,401
Randolph-Macon
College,
Revenue,
2021
A,
Refunding,
3%,
1/15/46
...........
1,100,000
1,072,241
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Virginia
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
115
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Virginia
(continued)
Virginia
College
Building
Authority,
(continued)
Randolph-Macon
College,
Revenue,
2021
A,
Refunding,
3%,
1/15/51
...........
$
1,750,000
$
1,680,612
Washington
&
Lee
University
(The),
Revenue,
2015
A,
Pre-Refunded,
5%,
1/01/40
.
5,000,000
5,513,111
Virginia
Commonwealth
Transportation
Board
,
Revenue,
2016,
5%,
9/15/30
.........................................
2,260,000
2,606,650
Revenue,
2016,
5%,
9/15/31
.........................................
4,000,000
4,611,641
Revenue,
2019,
4%,
5/15/40
.........................................
13,060,000
14,717,870
Revenue,
2020,
4%,
9/15/35
.........................................
4,000,000
4,660,579
Virginia
Housing
Development
Authority
,
Revenue
,
2018
D
,
3.8
%
,
10/01/43
........
3,805,000
4,036,309
Virginia
Public
Building
Authority
,
Revenue
,
2019
A
,
4
%
,
8/01/35
................
1,250,000
1,422,018
Virginia
Public
School
Authority
,
Revenue,
2014
B,
Refunding,
5%,
8/01/24
...............................
10,000,000
10,885,441
Revenue,
2018
B,
5%,
8/01/30
........................................
5,280,000
6,340,585
Revenue,
2019
A,
5%,
8/01/31
........................................
2,625,000
3,220,393
Revenue,
2020
B,
Refunding,
4%,
8/01/32
...............................
1,265,000
1,466,226
Revenue,
2020
B,
Refunding,
4%,
8/01/34
...............................
3,925,000
4,517,155
County
of
Prince
William,
Revenue,
2018,
4%,
3/01/33
......................
5,795,000
6,576,700
Virginia
Resources
Authority
,
Revenue,
Pre-Refunded,
5%,
11/01/38
..................................
3,195,000
3,609,596
Revenue,
5%,
11/01/38
.............................................
1,970,000
2,212,852
Revenue,
2015
B,
Refunding,
5%,
11/01/45
..............................
5,255,000
5,857,042
Revenue,
2018
C,
Refunding,
5%,
11/01/48
..............................
7,655,000
9,090,420
Virginia
Small
Business
Financing
Authority
,
95
Express
Lanes
LLC,
Revenue,
Senior
Lien,
2022,
Refunding,
4%,
1/01/48
.....
7,000,000
7,584,534
Bon
Secours
Mercy
Health,
Inc.,
Revenue,
2020
A,
Refunding,
4%,
12/01/49
.....
5,000,000
5,523,417
Capital
Beltway
Express
LLC,
Revenue,
Senior
Lien,
2022,
Refunding,
5%,
12/31/52
6,000,000
7,193,603
b
Elizabeth
River
Crossings
OpCo
LLC,
Revenue,
Senior
Lien,
2022,
Refunding,
4%,
1/01/40
........................................................
7,500,000
8,088,998
I-66
Express
Mobility
Partners
LLC,
Revenue,
Senior
Lien,
2017,
5%,
12/31/47
...
6,600,000
7,584,148
LifeSpire
of
Virginia
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
12/01/36
...
2,210,000
2,373,814
LifeSpire
of
Virginia
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
12/01/41
...
2,500,000
2,660,905
LifeSpire
of
Virginia
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
12/01/51
...
7,500,000
7,871,728
National
Senior
Communities,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
1/01/39
....................................................
2,520,000
2,784,552
National
Senior
Communities,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
1/01/45
....................................................
2,250,000
2,454,683
Sentara
Healthcare
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/01/38
...
4,000,000
4,495,066
Sentara
Healthcare
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/01/39
...
8,730,000
9,780,721
Winchester
Economic
Development
Authority
,
Valley
Health
Obligated
Group
,
Revenue
,
2015
,
Refunding
,
5
%
,
1/01/44
.................................
5,000,000
5,568,271
486,820,922
Washington
0.2%
a
Washington
State
Housing
Finance
Commission
,
Madison
at
Rivers
Edge
Apartments
LLC
,
Revenue
,
144A,
2021
A
,
3.65
%
,
1/01/37
............................
1,200,000
1,122,593
Wisconsin
0.9%
a
Public
Finance
Authority
,
Revenue,
144A,
2022,
B-1,
4%,
12/28/44
................................
1,200,000
1,156,217
Affordable
Housing
Preservation
Corp.
(The),
Revenue,
144A,
2021,
5.25%,
12/01/22
.......................................................
4,200,000
4,180,677
5,336,894
U.S.
Territories
8.2%
District
of
Columbia
6.5%
Metropolitan
Washington
Airports
Authority
,
Aviation,
Revenue,
2019
A,
Refunding,
5%,
10/01/49
.......................
5,000,000
5,812,431
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Virginia
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
116
s
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
U.S.
Territories
(continued)
District
of
Columbia
(continued)
Metropolitan
Washington
Airports
Authority,
(continued)
Dulles
Toll
Road,
Revenue,
Senior
Lien,
2022
A,
Refunding,
AGMC
Insured,
4%,
10/01/52
.......................................................
$
10,000,000
$
11,071,560
Washington
Metropolitan
Area
Transit
Authority
,
Revenue,
2017
B,
5%,
7/01/42
........................................
5,000,000
5,778,408
Revenue,
2020
A,
5%,
7/15/36
........................................
5,000,000
6,203,950
Revenue,
2020
A,
5%,
7/15/45
........................................
7,000,000
8,542,235
Revenue,
2021
A,
5%,
7/15/37
........................................
1,000,000
1,260,254
38,668,838
Puerto
Rico
1.7%
Puerto
Rico
Electric
Power
Authority
,
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/32
....................
1,700,000
1,800,270
c
Revenue,
WW-RSA-1,
5.5%,
7/01/38
...................................
1,040,000
1,081,600
c
Revenue,
XX-RSA-1,
5.25%,
7/01/40
...................................
1,900,000
1,968,875
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue,
2007
N,
Refunding,
NATL
Insured,
5.25%,
7/01/33
.................
1,100,000
1,165,663
Revenue,
CC,
Refunding,
AGMC
Insured,
5.5%,
7/01/31
....................
1,800,000
1,919,513
Revenue,
L,
Refunding,
AGMC
Insured,
5.25%,
7/01/41
.....................
1,600,000
1,664,464
Puerto
Rico
Industrial
Tourist
Educational
Medical
&
Environmental
Control
Facilities
Financing
Authority
,
Hospital
Auxilio
Mutuo
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
7/01/29
..
425,000
504,839
Hospital
Auxilio
Mutuo
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
7/01/37
..
200,000
220,489
10,325,713
Total
U.S.
Territories
....................................................................
48,994,551
Total
Municipal
Bonds
(Cost
$556,841,722)
.....................................
565,780,898
a
a
a
a
Short
Term
Investments
1.2%
Municipal
Bonds
1.2%
Virginia
1.2%
d
Albemarle
County
Economic
Development
Authority
,
Sentara
Healthcare
Obligated
Group
,
Revenue
,
2018
B
,
Refunding
,
SPA
TD
Bank
NA
,
Daily
VRDN
and
Put
,
0.1
%
,
10/01/48
........................................................
4,500,000
4,500,000
d
Virginia
College
Building
Authority
,
University
of
Richmond
,
Revenue
,
2006
,
SPA
Wells
Fargo
Bank
NA
,
Daily
VRDN
and
Put
,
0.1
%
,
11/01/36
......................
2,500,000
2,500,000
7,000,000
Total
Municipal
Bonds
(Cost
$7,000,000)
.......................................
7,000,000
Total
Short
Term
Investments
(Cost
$7,000,000
)
.................................
7,000,000
a
Total
Investments
(Cost
$563,841,722)
96.9%
...................................
$572,780,898
Other
Assets,
less
Liabilities
3.1%
.............................................
18,127,472
Net
Assets
100.0%
...........................................................
$590,908,370
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Virginia
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
117
See
Abbreviations
on
page
149
.
a
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
February
28,
2022,
the
aggregate
value
of
these
securities
was
$14,020,276,
representing
2.4%
of
net
assets.
b
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).
c
See
Note
7
regarding
defaulted
securities.
d
Variable
rate
demand
notes
(VRDNs)
are
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.
Unless
otherwise
noted,
the
coupon
rate
is
determined
based
on
factors
including
supply
and
demand,
underlying
credit,
tax
treatment,
and
current
short
term
rates.
The
coupon
rate
shown
represents
the
rate
at
period
end.
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Assets
and
Liabilities
February
28,
2022
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
118
Franklin
Alabama
Tax-
Free
Income
Fund
Franklin
Georgia
Tax-
Free
Income
Fund
Franklin
Louisiana
Tax-
Free
Income
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
.................................
$230,508,080
$444,920,037
$351,629,946
Value
-
Unaffiliated
issuers
................................
$237,951,465
$454,200,910
$361,389,520
Cash
..................................................
6,805,663
6,012,967
9,566,888
Receivables:
Capital
shares
sold
......................................
187,778
200,150
547,415
Interest
...............................................
2,465,990
4,036,164
4,254,470
Total
assets
........................................
247,410,896
464,450,191
375,758,293
Liabilities:
Payables:
Investment
securities
purchased
............................
1,166,625
3,409,938
—
Capital
shares
redeemed
.................................
251,240
630,444
860,656
Management
fees
.......................................
112,699
193,183
161,259
Distribution
fees
........................................
28,407
51,875
41,705
Transfer
agent
fees
......................................
24,154
49,814
41,756
Trustees'
fees
and
expenses
...............................
1,074
281
1,082
Distributions
to
shareholders
...............................
38,009
97,781
26,623
Accrued
expenses
and
other
liabilities
.........................
64,375
105,293
67,889
Total
liabilities
.......................................
1,686,583
4,538,609
1,200,970
Net
assets,
at
value
...............................
$245,724,313
$459,911,582
$374,557,323
Net
assets
consist
of:
Paid-in
capital
...........................................
$252,961,169
$475,423,779
$389,125,142
Total
distributable
earnings
(losses)
...........................
(7,236,856)
(15,512,197)
(14,567,819)
Net
assets,
at
value
...............................
$245,724,313
$459,911,582
$374,557,323
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
February
28,
2022
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
119
Franklin
Alabama
Tax-
Free
Income
Fund
Franklin
Georgia
Tax-
Free
Income
Fund
Franklin
Louisiana
Tax-
Free
Income
Fund
Class
A:
Net
assets,
at
value
.....................................
$46,633,246
$92,128,564
$69,773,068
Shares
outstanding
......................................
4,252,581
7,963,778
6,324,178
Net
asset
value
per
share
a
................................
$10.97
$11.57
$11.03
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%,
96.25%
and
96.25%,
respectively)
..........................
$11.40
$12.02
$11.46
Class
A1:
Net
assets,
at
value
.....................................
$163,571,224
$249,762,799
$234,499,223
Shares
outstanding
......................................
14,933,960
21,589,171
21,266,400
Net
asset
value
per
share
a
................................
$10.95
$11.57
$11.03
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%,
96.25%
and
96.25%,
respectively)
..........................
$11.38
$12.02
$11.46
Class
C:
Net
assets,
at
value
.....................................
$13,415,700
$28,904,457
$19,990,506
Shares
outstanding
......................................
1,208,517
2,460,337
1,783,210
Net
asset
value
and
maximum
offering
price
per
share
a
...........
$11.10
$11.75
$11.21
Class
R6:
Net
assets,
at
value
.....................................
$2,308,364
$17,046,851
$8,030,801
Shares
outstanding
......................................
210,727
1,473,446
728,165
Net
asset
value
and
maximum
offering
price
per
share
...........
$10.95
$11.57
$11.03
Advisor
Class:
Net
assets,
at
value
.....................................
$19,795,779
$72,068,911
$42,263,725
Shares
outstanding
......................................
1,807,113
6,226,891
3,830,946
Net
asset
value
and
maximum
offering
price
per
share
...........
$10.95
$11.57
$11.03
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
February
28,
2022
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
120
Franklin
Maryland
Tax-
Free
Income
Fund
Franklin
Missouri
Tax-
Free
Income
Fund
Franklin
North
Carolina
Tax-
Free
Income
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
.................................
$385,530,274
$936,420,474
$805,859,799
Value
-
Unaffiliated
issuers
................................
$392,506,054
$962,241,750
$822,390,521
Cash
..................................................
3,033,895
549,089
5,458
Receivables:
Capital
shares
sold
......................................
186,855
234,381
192,133
Interest
...............................................
3,627,377
12,573,384
9,100,942
Total
assets
........................................
399,354,181
975,598,604
831,689,054
Liabilities:
Payables:
Investment
securities
purchased
............................
—
3,747,340
—
Capital
shares
redeemed
.................................
443,894
1,179,319
1,881,131
Management
fees
.......................................
170,136
384,118
331,932
Distribution
fees
........................................
46,150
112,542
89,795
Transfer
agent
fees
......................................
44,330
88,676
83,016
Trustees'
fees
and
expenses
...............................
1,086
872
992
Distributions
to
shareholders
...............................
81,190
127,715
100,304
Accrued
expenses
and
other
liabilities
.........................
72,503
156,221
98,468
Total
liabilities
.......................................
859,289
5,796,803
2,585,638
Net
assets,
at
value
...............................
$398,494,892
$969,801,801
$829,103,416
Net
assets
consist
of:
Paid-in
capital
...........................................
$432,806,366
$1,025,987,039
$907,419,828
Total
distributable
earnings
(losses)
...........................
(34,311,474)
(56,185,238)
(78,316,412)
Net
assets,
at
value
...............................
$398,494,892
$969,801,801
$829,103,416
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
February
28,
2022
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
121
Franklin
Maryland
Tax-
Free
Income
Fund
Franklin
Missouri
Tax-
Free
Income
Fund
Franklin
North
Carolina
Tax-
Free
Income
Fund
Class
A:
Net
assets,
at
value
.....................................
$90,950,193
$208,059,422
$167,474,375
Shares
outstanding
......................................
8,490,796
18,115,762
14,806,775
Net
asset
value
per
share
a
................................
$10.71
$11.48
$11.31
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%,
96.25%
and
96.25%,
respectively)
..........................
$11.13
$11.93
$11.75
Class
A1:
Net
assets,
at
value
.....................................
$214,263,657
$588,698,081
$462,916,438
Shares
outstanding
......................................
19,998,063
51,291,499
40,940,727
Net
asset
value
per
share
a
................................
$10.71
$11.48
$11.31
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%,
96.25%
and
96.25%,
respectively)
..........................
$11.13
$11.93
$11.75
Class
C:
Net
assets,
at
value
.....................................
$24,226,591
$52,653,595
$42,793,657
Shares
outstanding
......................................
2,215,137
4,539,987
3,722,841
Net
asset
value
and
maximum
offering
price
per
share
a
...........
$10.94
$11.60
$11.49
Class
R6:
Net
assets,
at
value
.....................................
$13,770,704
$33,747,254
$22,999,520
Shares
outstanding
......................................
1,283,159
2,937,333
2,034,947
Net
asset
value
and
maximum
offering
price
per
share
...........
$10.73
$11.49
$11.30
Advisor
Class:
Net
assets,
at
value
.....................................
$55,283,747
$86,643,449
$132,919,426
Shares
outstanding
......................................
5,153,784
7,543,899
11,754,203
Net
asset
value
and
maximum
offering
price
per
share
...........
$10.73
$11.49
$11.31
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
February
28,
2022
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
122
Franklin
Virginia
Tax-
Free
Income
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$563,841,722
Value
-
Unaffiliated
issuers
..................................................................
$572,780,898
Cash
....................................................................................
40,848,381
Receivables:
Capital
shares
sold
........................................................................
136,127
Interest
.................................................................................
4,729,948
Total
assets
..........................................................................
618,495,354
Liabilities:
Payables:
Investment
securities
purchased
..............................................................
25,320,893
Capital
shares
redeemed
...................................................................
1,704,148
Management
fees
.........................................................................
242,586
Distribution
fees
..........................................................................
56,950
Transfer
agent
fees
........................................................................
66,729
Trustees'
fees
and
expenses
.................................................................
1,006
Distributions
to
shareholders
.................................................................
93,065
Accrued
expenses
and
other
liabilities
...........................................................
101,607
Total
liabilities
.........................................................................
27,586,984
Net
assets,
at
value
.................................................................
$590,908,370
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$638,720,729
Total
distributable
earnings
(losses)
.............................................................
(47,812,359)
Net
assets,
at
value
.................................................................
$590,908,370
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
February
28,
2022
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
123
Franklin
Virginia
Tax-
Free
Income
Fund
Class
A:
Net
assets,
at
value
.......................................................................
$108,134,917
Shares
outstanding
........................................................................
10,019,567
Net
asset
value
per
share
a
..................................................................
$10.79
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%)
................................
$11.21
Class
A1:
Net
assets,
at
value
.......................................................................
$316,274,516
Shares
outstanding
........................................................................
29,311,293
Net
asset
value
per
share
a
..................................................................
$10.79
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%)
................................
$11.21
Class
C:
Net
assets,
at
value
.......................................................................
$20,687,268
Shares
outstanding
........................................................................
1,884,060
Net
asset
value
and
maximum
offering
price
per
share
a
.............................................
$10.98
Class
R6:
Net
assets,
at
value
.......................................................................
$7,778,498
Shares
outstanding
........................................................................
720,411
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$10.80
Advisor
Class:
Net
assets,
at
value
.......................................................................
$138,033,171
Shares
outstanding
........................................................................
12,780,623
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$10.80
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Operations
for
the
year
ended
February
28,
2022
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
124
Franklin
Alabama
Tax-
Free
Income
Fund
Franklin
Georgia
Tax-
Free
Income
Fund
Franklin
Louisiana
Tax-
Free
Income
Fund
Investment
income:
Interest:
Unaffiliated
issuers
......................................
$7,128,672
$14,801,762
$11,449,436
Expenses:
Management
fees
(Note
3
a
)
.................................
1,383,169
2,415,658
1,998,691
Distribution
fees:
(Note
3c
)
    Class
A
..............................................
98,878
220,868
164,209
    Class
A1
.............................................
173,693
267,308
250,544
    Class
C
..............................................
119,920
243,910
163,457
Transfer
agent
fees:
(Note
3e
)
    Class
A
..............................................
24,763
62,847
47,401
    Class
A1
.............................................
109,332
189,900
180,224
    Class
C
..............................................
11,678
26,626
18,025
    Class
R6
.............................................
1,185
5,636
3,231
    Advisor
Class
..........................................
11,575
52,212
29,624
Custodian
fees
(Note
4
)
....................................
1,379
2,597
2,134
Reports
to
shareholders
fees
................................
21,817
45,269
26,264
Registration
and
filing
fees
..................................
17,807
22,299
14,972
Professional
fees
.........................................
58,413
67,696
53,270
Trustees'
fees
and
expenses
................................
3,193
4,353
4,361
Other
..................................................
17,782
35,023
30,840
Total
expenses
.......................................
2,054,584
3,662,202
2,987,247
Expense
reductions
(Note
4
)
.............................
(1,903)
(3,756)
(2,147)
Expenses
waived/paid
by
affiliates
(Note
3
f
)
..................
(544)
(741)
(1,046)
Net
expenses
.......................................
2,052,137
3,657,705
2,984,054
Net
investment
income
..............................
5,076,535
11,144,057
8,465,382
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
....................................
1,245,803
531,297
3,844,628
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
....................................
(6,199,610)
(14,369,583)
(12,436,991)
Net
realized
and
unrealized
gain
(loss)
..........................
(4,953,807)
(13,838,286)
(8,592,363)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
........
$122,728
$(2,694,229)
$(126,981)
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Operations
(continued)
for
the
year
ended
February
28,
2022
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
125
Franklin
Maryland
Tax-
Free
Income
Fund
Franklin
Missouri
Tax-
Free
Income
Fund
Franklin
North
Carolina
Tax-
Free
Income
Fund
Investment
income:
Interest:
Unaffiliated
issuers
......................................
$12,434,175
$32,008,397
$22,956,784
Expenses:
Management
fees
(Note
3
a
)
.................................
2,131,419
4,822,372
4,159,412
Distribution
fees:
(Note
3c
)
    Class
A
..............................................
220,514
498,685
403,706
    Class
A1
.............................................
232,771
635,684
503,889
    Class
C
..............................................
195,186
423,520
345,281
Transfer
agent
fees:
(Note
3e
)
    Class
A
..............................................
67,893
121,776
110,137
    Class
A1
.............................................
179,183
389,425
342,426
    Class
C
..............................................
23,124
40,085
35,951
    Class
R6
.............................................
3,634
11,684
7,817
    Advisor
Class
..........................................
44,547
52,586
90,777
Custodian
fees
(Note
4
)
....................................
2,323
5,536
4,884
Reports
to
shareholders
fees
................................
26,636
80,301
52,115
Registration
and
filing
fees
..................................
23,068
20,615
21,035
Professional
fees
.........................................
51,671
51,481
52,872
Trustees'
fees
and
expenses
................................
4,639
9,476
8,355
Other
..................................................
28,780
59,069
65,418
Total
expenses
.......................................
3,235,388
7,222,295
6,204,075
Expense
reductions
(Note
4
)
.............................
(2,619)
(5,371)
(4,236)
Expenses
waived/paid
by
affiliates
(Note
3
f
)
..................
(315)
(1,650)
(1,694)
Net
expenses
.......................................
3,232,454
7,215,274
6,198,145
Net
investment
income
..............................
9,201,721
24,793,123
16,758,639
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
....................................
317,111
1,856,632
2,020,954
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
....................................
(9,770,304)
(33,227,550)
(24,854,143)
Net
realized
and
unrealized
gain
(loss)
..........................
(9,453,193)
(31,370,918)
(22,833,189)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
........
$(251,472)
$(6,577,795)
$(6,074,550)
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Operations
(continued)
for
the
year
ended
February
28,
2022
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
126
Franklin
Virginia
Tax-
Free
Income
Fund
Investment
income:
Interest:
Unaffiliated
issuers
........................................................................
$16,238,400
Expenses:
Management
fees
(Note
3
a
)
...................................................................
3,103,411
Distribution
fees:
(Note
3c
)
    Class
A
................................................................................
288,519
    Class
A1
...............................................................................
344,104
    Class
C
................................................................................
200,616
Transfer
agent
fees:
(Note
3e
)
    Class
A
................................................................................
87,169
    Class
A1
...............................................................................
259,050
    Class
C
................................................................................
23,105
    Class
R6
...............................................................................
3,068
    Advisor
Class
............................................................................
105,138
Custodian
fees
(Note
4
)
......................................................................
3,533
Reports
to
shareholders
fees
..................................................................
45,957
Registration
and
filing
fees
....................................................................
23,206
Professional
fees
...........................................................................
54,207
Trustees'
fees
and
expenses
..................................................................
6,405
Other
....................................................................................
45,467
Total
expenses
.........................................................................
4,592,955
Expense
reductions
(Note
4
)
...............................................................
(2,752)
Expenses
waived/paid
by
affiliates
(Note
3
f
)
....................................................
(789)
Net
expenses
.........................................................................
4,589,414
Net
investment
income
................................................................
11,648,986
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
......................................................................
2,823,447
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
(21,506,954)
Net
realized
and
unrealized
gain
(loss)
............................................................
(18,683,507)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$(7,034,521)
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
127
28
Franklin
Alabama
Tax-Free
Income
Fund
Franklin
Georgia
Tax-Free
Income
Fund
Year
Ended
February
28,
2022
Year
Ended
February
28,
2021
Year
Ended
February
28,
2022
Year
Ended
February
28,
2021
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$5,076,535
$6,329,447
$11,144,057
$12,155,622
Net
realized
gain
(loss)
............
1,245,803
1,468,481
531,297
(2,897,903)
Net
change
in
unrealized
appreciation
(depreciation)
.................
(6,199,610)
(6,480,814)
(14,369,583)
(8,840,835)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
122,728
1,317,114
(2,694,229)
416,884
Distributions
to
shareholders:
Class
A
........................
(754,875)
(551,546)
(1,924,865)
(1,644,050)
Class
A1
.......................
(3,598,684)
(4,675,881)
(6,250,182)
(7,449,070)
Class
C
........................
(277,485)
(545,891)
(660,141)
(1,077,327)
Class
R6
.......................
(46,916)
(48,503)
(403,672)
(164,822)
Advisor
Class
...................
(399,137)
(358,105)
(1,785,540)
(1,716,421)
Total
distributions
to
shareholders
.....
(5,077,097)
(6,179,926)
(11,024,400)
(12,051,690)
Capital
share
transactions:
(Note
2
)
Class
A
........................
17,533,172
14,447,044
17,846,174
23,662,932
Class
A1
.......................
(8,167,800)
(8,122,292)
(17,223,067)
(27,686,140)
Class
C
........................
(9,923,910)
(7,255,477)
(15,938,031)
(15,504,407)
Class
R6
.......................
612,250
125,789
3,801,180
9,088,022
Advisor
Class
...................
5,242,272
3,593,758
6,322,271
15,319,625
Total
capital
share
transactions
.......
5,295,984
2,788,822
(5,191,473)
4,880,032
Net
increase
(decrease)
in
net
assets
.....................
341,615
(2,073,990)
(18,910,102)
(6,754,774)
Net
assets:
Beginning
of
year
..................
245,382,698
247,456,688
478,821,684
485,576,458
End
of
year
......................
$245,724,313
$245,382,698
$459,911,582
$478,821,684
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
128
Franklin
Louisiana
Tax-Free
Income
Fund
Franklin
Maryland
Tax-Free
Income
Fund
Year
Ended
February
28,
2022
Year
Ended
February
28,
2021
Year
Ended
February
28,
2022
Year
Ended
February
28,
2021
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$8,465,382
$9,937,220
$9,201,721
$11,103,353
Net
realized
gain
(loss)
............
3,844,628
(967,125)
317,111
193,375
Net
change
in
unrealized
appreciation
(depreciation)
.................
(12,436,991)
(9,458,864)
(9,770,304)
(14,901,535)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
(126,981)
(488,769)
(251,472)
(3,604,807)
Distributions
to
shareholders:
Class
A
........................
(1,355,423)
(1,253,244)
(1,847,123)
(1,756,429)
Class
A1
.......................
(5,559,774)
(6,907,707)
(5,228,037)
(6,872,496)
Class
C
........................
(410,766)
(670,118)
(494,740)
(840,223)
Class
R6
.......................
(171,786)
(156,165)
(264,173)
(135,378)
Advisor
Class
...................
(951,070)
(820,671)
(1,356,086)
(1,524,495)
Total
distributions
to
shareholders
.....
(8,448,819)
(9,807,905)
(9,190,159)
(11,129,021)
Capital
share
transactions:
(Note
2
)
Class
A
........................
14,760,234
10,165,912
14,990,913
20,428,324
Class
A1
.......................
(10,867,047)
(32,103,766)
(21,476,737)
(20,678,888)
Class
C
........................
(9,129,099)
(7,706,875)
(10,253,672)
(9,119,751)
Class
R6
.......................
2,158,691
831,772
6,130,219
4,579,640
Advisor
Class
...................
5,976,569
10,174,029
(1,248,456)
5,683,284
Total
capital
share
transactions
.......
2,899,348
(18,638,928)
(11,857,733)
892,609
Net
increase
(decrease)
in
net
assets
.....................
(5,676,452)
(28,935,602)
(21,299,364)
(13,841,219)
Net
assets:
Beginning
of
year
..................
380,233,775
409,169,377
419,794,256
433,635,475
End
of
year
......................
$374,557,323
$380,233,775
$398,494,892
$419,794,256
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
129
Franklin
Missouri
Tax-Free
Income
Fund
Franklin
North
Carolina
Tax-Free
Income
Fund
Year
Ended
February
28,
2022
Year
Ended
February
28,
2021
Year
Ended
February
28,
2022
Year
Ended
February
28,
2021
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$24,793,123
$25,318,598
$16,758,639
$20,502,814
Net
realized
gain
(loss)
............
1,856,632
(10,285,527)
2,020,954
(3,887,901)
Net
change
in
unrealized
appreciation
(depreciation)
.................
(33,227,550)
(11,420,492)
(24,854,143)
(13,917,043)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
(6,577,795)
3,612,579
(6,074,550)
2,697,870
Distributions
to
shareholders:
Class
A
........................
(4,640,922)
(3,499,233)
(2,910,737)
(2,762,511)
Class
A1
.......................
(15,763,982)
(17,229,680)
(9,886,701)
(12,994,694)
Class
C
........................
(1,239,261)
(1,763,266)
(736,807)
(1,367,207)
Class
R6
.......................
(872,106)
(746,105)
(427,516)
(331,041)
Advisor
Class
...................
(2,220,951)
(2,114,731)
(2,743,534)
(2,811,929)
Total
distributions
to
shareholders
.....
(24,737,222)
(25,353,015)
(16,705,295)
(20,267,382)
Capital
share
transactions:
(Note
2
)
Class
A
........................
45,567,195
49,587,973
26,654,713
46,331,929
Class
A1
.......................
(40,150,732)
(46,278,334)
(46,116,361)
(35,458,617)
Class
C
........................
(20,644,808)
(27,913,788)
(19,791,334)
(25,193,856)
Class
R6
.......................
4,579,390
7,048,353
6,260,900
6,762,164
Advisor
Class
...................
4,007,477
4,419,625
15,670,711
17,483,390
Total
capital
share
transactions
.......
(6,641,478)
(13,136,171)
(17,321,371)
9,925,010
Net
increase
(decrease)
in
net
assets
.....................
(37,956,495)
(34,876,607)
(40,101,216)
(7,644,502)
Net
assets:
Beginning
of
year
..................
1,007,758,296
1,042,634,903
869,204,632
876,849,134
End
of
year
......................
$969,801,801
$1,007,758,296
$829,103,416
$869,204,632
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
130
Franklin
Virginia
Tax-Free
Income
Fund
Year
Ended
February
28,
2022
Year
Ended
February
28,
2021
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$11,648,986
$13,142,829
Net
realized
gain
(loss)
.................................................
2,823,447
(5,904,493)
Net
change
in
unrealized
appreciation
(depreciation)
...........................
(21,506,954)
(11,481,503)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
(7,034,521)
(4,243,167)
Distributions
to
shareholders:
Class
A
.............................................................
(1,968,849)
(1,796,286)
Class
A1
............................................................
(6,386,350)
(7,980,406)
Class
C
.............................................................
(390,813)
(692,566)
Class
R6
............................................................
(152,144)
(137,849)
Advisor
Class
........................................................
(2,725,070)
(2,554,529)
Total
distributions
to
shareholders
..........................................
(11,623,226)
(13,161,636)
Capital
share
transactions:
(Note
2
)
Class
A
.............................................................
4,545,859
32,781,750
Class
A1
............................................................
(27,940,434)
(34,412,273)
Class
C
.............................................................
(17,017,853)
(12,938,525)
Class
R6
............................................................
1,224,299
1,146,641
Advisor
Class
........................................................
13,684,586
22,261,037
Total
capital
share
transactions
............................................
(25,503,543)
8,838,630
Net
increase
(decrease)
in
net
assets
...................................
(44,161,290)
(8,566,173)
Net
assets:
Beginning
of
year
.......................................................
635,069,660
643,635,833
End
of
year
...........................................................
$590,908,370
$635,069,660
Franklin
Tax-Free
Trust
131
franklintempleton.com
Annual
Report
Notes
to
Financial
Statements
1.
Organization
and
Significant
Accounting
Policies
Franklin
Tax-Free
Trust (Trust)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-end
management
investment
company,
consisting
of
twenty-one
separate
funds,
seven
of
which
are
included
in
this
report
(Funds)
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP).
The
classes
of
shares
offered
within
each
of
the
Funds
are
indicated
below.
Effective
August
2,
2021,
Class
C
shares
automatically
convert
to
Class
A
shares
on
a
monthly
basis,
after
they
have
been
held
for
8
years.
Prior
to
August
2,
2021,
Class
C
shares
converted
to
Class
A
shares
after
a
10-year
holding
period.
Each
class
of
shares
may
differ
by
its initial
sales
load,
contingent
deferred
sales
charges,
voting
rights
on
matters
affecting
a
single
class,
its
exchange
privilege
and
fees
due
to
differing
arrangements
for
distribution
and
transfer
agent
fees.
Class
A,
Class
A1,
Class
C,
Class
R6
&
Advisor
Class
Franklin
Alabama
Tax-Free
Income
Fund
Franklin
Georgia
Tax-Free
Income
Fund
Franklin
Louisiana
Tax-Free
Income
Fund
Franklin
Maryland
Tax-Free
Income
Fund
Franklin
Missouri
Tax-Free
Income
Fund
Franklin
North
Carolina
Tax-Free
Income
Fund
Franklin
Virginia
Tax-Free
Income
Fund
The
following
summarizes
the Funds'
significant
accounting
policies. 
a.
Financial
Instrument
Valuation 
The Funds'
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The Funds calculate the
net
asset
value
(NAV)
per
share
each
business
day
as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the
Trust's
Board
of
Trustees
(the
Board),
the
Funds' administrator
has
responsibility
for
oversight
of
valuation,
including
leading
the
cross-functional
Valuation
Committee
(VC).
The
Funds
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value. 
Debt
securities
generally
trade
in
the
over-the-counter
market
rather
than
on
a
securities
exchange.
The
Funds'
pricing
services
use
multiple
valuation
techniques
to
determine
fair
value.
In
instances
where
sufficient
market
activity
exists,
the
pricing
services
may
utilize
a
market-
based
approach
through
which
quotes
from
market
makers
are
used
to
determine
fair
value.
In
instances
where
sufficient
market
activity
may
not
exist
or
is
limited,
the
pricing
services
also
utilize
proprietary
valuation
models
which
may
consider
market
characteristics
such
as
benchmark
yield
curves,
credit
spreads,
estimated
default
rates,
anticipated
market
interest
rate
volatility,
coupon
rates,
anticipated
timing
of
principal
repayments,
underlying
collateral,
and
other
unique
security
features
in
order
to
estimate
the
relevant
cash
flows,
which
are
then
discounted
to
calculate
the
fair
value.
The
Funds
have
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the
Funds
primarily
employ
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
book
values,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
b.
Securities
Purchased
on
a
When-Issued
or
Delayed
Delivery
Basis
Certain
or
all
Funds
purchase
securities
on
a
when-issued
or
delayed
delivery
basis,
with
payment
and
delivery
scheduled
for
a
future
date.
These
transactions
are
subject
to
market
fluctuations
and
are
subject
to
the
risk
that
the
value
at
delivery
may
be
more
or
less
than
the
trade
date
purchase
price.
Although
the
Funds
will
generally
purchase
these
securities
with
the
intention
of
holding
the
securities,
they
may
sell
the
securities
before
the
settlement
date.
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
132
franklintempleton.com
Annual
Report
c.
Income
Taxes
It
is each
Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. Each
Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
income
and
net
realized
gains
to
relieve
it
from
federal
income
and
excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
Each
Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
February
28,
2022, each
Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
Open
tax
years
are
those
that
remain
subject
to
examination
and
are
based
on
the
statute
of
limitations
in
each
jurisdiction
in
which
the
Fund
invests. 
d.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification
basis.
Interest
income
and
estimated
expenses
are
accrued
daily.
Amortization
of
premium
and
accretion
of
discount
on
debt
securities
are
included
in
interest
income.
Dividends
from
net
investment
income
are
normally
declared
daily;
these
dividends
may
be
reinvested
or
paid
monthly
to
shareholders.
Distributions
from
realized
capital
gains
and
other
distributions,
if
any,
are
recorded
on
the
ex-dividend
date.
Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
Common
expenses
incurred
by
the
Trust
are
allocated
among
the
Funds
based
on
the
ratio
of
net
assets
of
each
Fund
to
the
combined
net
assets
of
the
Trust
or
based
on
the
ratio
of
number
of
shareholders
of
each
Fund
to
the
combined
number
of
shareholders
of
the
Trust.
Fund
specific
expenses
are
charged
directly
to
the
Fund
that
incurred
the
expense.
Realized
and
unrealized
gains
and
losses
and
net
investment
income,
excluding
class
specific
expenses,
are
allocated
daily
to
each
class
of
shares
based
upon
the
relative
proportion
of
net
assets
of
each
class.
Differences
in
per
share
distributions
by
class
are
generally
due
to
differences
in
class
specific
expenses.
e.
Insurance
The
scheduled
payments
of
interest
and
principal
for
each
insured
municipal
security
in
the
Trust
are
insured
by
either
a
new
issue
insurance
policy
or
a
secondary
insurance
policy.
Some
municipal
securities
in
the
Funds
are
secured
by
collateral
guaranteed
by
an
agency
of
the
U.S.
government.
Depending
on
the
type
of
coverage,
premiums
for
insurance
are
either
added
to
the
cost
basis
of
the
security
or
paid
by
a
third
party.
Insurance
companies
typically
insure
municipal
bonds
that
tend
to
be
of
very
high
quality,
with
the
majority
of
underlying
municipal
bonds
rated
A
or
better.
However,
an
event
involving
an
insurer
could
have
an
adverse
effect
on
the
value
of
the
securities
insured
by
that
insurance
company.
There
can
be
no
assurance
the
insurer
will
be
able
to
fulfill
its
obligations
under
the
terms
of
the
policy.
f.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
g.
Guarantees
and
Indemnifications
Under
the
Trust’s
organizational
documents,
its
officers
and
trustees
are
indemnified
by
the
Trust
against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Trust.
Additionally,
in
the
normal
course
of
business,
the
Trust,
on
behalf
of
the
Funds,
enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The
Trust's
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the
Trust
that
have
not
yet
occurred.
Currently,
the
Trust
expects
the
risk
of
loss
to
be
remote.
1.
Organization
and
Significant
Accounting
Policies
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
133
franklintempleton.com
Annual
Report
2.
Shares
of
Beneficial
Interest
At
February
28,
2022,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Funds'
shares
were
as
follows:
Franklin
Alabama
Tax-Free
Income
Fund
Franklin
Georgia
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
A
Class
A
Shares:
Year
ended
February
28,
2022
Shares
sold
a
...................................
2,046,358
$23,313,909
3,077,660
$37,009,305
Shares
issued
in
reinvestment
of
distributions
..........
61,957
700,673
147,263
1,761,384
Shares
redeemed
...............................
(576,882)
(6,481,410)
(1,747,795)
(20,924,515)
Net
increase
(decrease)
..........................
1,531,433
$17,533,172
1,477,128
$17,846,174
Year
ended
February
28,
2021
Shares
sold
a
...................................
1,634,140
$18,445,837
2,608,906
$31,141,436
Shares
issued
in
reinvestment
of
distributions
..........
45,042
507,215
126,236
1,505,976
Shares
redeemed
...............................
(399,044)
(4,506,008)
(755,251)
(8,984,480)
Net
increase
(decrease)
..........................
1,280,138
$14,447,044
1,979,891
$23,662,932
Class
A1
Class
A1
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
496,734
$5,644,773
838,290
$10,056,968
Shares
issued
in
reinvestment
of
distributions
..........
285,151
3,225,568
464,557
5,561,571
Shares
redeemed
...............................
(1,504,718)
(17,038,141)
(2,738,860)
(32,841,606)
Net
increase
(decrease)
..........................
(722,833)
$(8,167,800)
(1,436,013)
$(17,223,067)
Year
ended
February
28,
2021
Shares
sold
...................................
481,485
$5,387,614
891,352
$10,657,829
Shares
issued
in
reinvestment
of
distributions
..........
367,993
4,134,909
555,571
6,620,680
Shares
redeemed
...............................
(1,573,599)
(17,644,815)
(3,803,161)
(44,964,649)
Net
increase
(decrease)
..........................
(724,121)
$(8,122,292)
(2,356,238)
$(27,686,140)
Class
C
Class
C
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
124,256
$1,424,632
198,212
$2,412,785
Shares
issued
in
reinvestment
of
distributions
..........
23,668
271,689
51,567
627,675
Shares
redeemed
a
..............................
(1,005,038)
(11,620,231)
(1,552,546)
(18,978,491)
Net
increase
(decrease)
..........................
(857,114)
$(9,923,910)
(1,302,767)
$(15,938,031)
Year
ended
February
28,
2021
Shares
sold
...................................
155,772
$1,770,400
385,525
$4,660,396
Shares
issued
in
reinvestment
of
distributions
..........
45,479
517,722
81,150
981,440
Shares
redeemed
a
..............................
(837,493)
(9,543,599)
(1,745,962)
(21,146,243)
Net
increase
(decrease)
..........................
(636,242)
$(7,255,477)
(1,279,287)
$(15,504,407)
Class
R6
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
134
franklintempleton.com
Annual
Report
Franklin
Alabama
Tax-Free
Income
Fund
Franklin
Georgia
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
R6
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
85,075
$966,469
693,251
$8,350,009
Shares
issued
in
reinvestment
of
distributions
..........
4,171
47,147
15,389
184,124
Shares
redeemed
...............................
(35,757)
(401,366)
(394,867)
(4,732,953)
Net
increase
(decrease)
..........................
53,489
$612,250
313,773
$3,801,180
Year
ended
February
28,
2021
Shares
sold
...................................
50,100
$564,150
841,386
$10,149,631
Shares
issued
in
reinvestment
of
distributions
..........
4,293
48,263
11,701
139,615
Shares
redeemed
...............................
(43,272)
(486,624)
(101,839)
(1,201,224)
Net
increase
(decrease)
..........................
11,121
$125,789
751,248
$9,088,022
Advisor
Class
Advisor
Class
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
781,670
$8,871,519
1,663,730
$19,956,762
Shares
issued
in
reinvestment
of
distributions
..........
32,349
365,736
135,942
1,627,414
Shares
redeemed
...............................
(353,474)
(3,994,983)
(1,280,532)
(15,261,905)
Net
increase
(decrease)
..........................
460,545
$5,242,272
519,140
$6,322,271
Year
ended
February
28,
2021
Shares
sold
...................................
554,603
$6,248,789
2,155,326
$25,525,602
Shares
issued
in
reinvestment
of
distributions
..........
28,704
322,820
129,011
1,539,366
Shares
redeemed
...............................
(265,115)
(2,977,851)
(986,817)
(11,745,343)
Net
increase
(decrease)
..........................
318,192
$3,593,758
1,297,520
$15,319,625
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
135
franklintempleton.com
Annual
Report
Franklin
Louisiana
Tax-Free
Income
Fund
Franklin
Maryland
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
A
Class
A
Shares:
Year
ended
February
28,
2022
Shares
sold
a
...................................
2,042,754
$23,336,846
2,288,375
$25,395,603
Shares
issued
in
reinvestment
of
distributions
..........
115,403
1,312,424
158,179
1,746,832
Shares
redeemed
...............................
(869,485)
(9,889,036)
(1,101,847)
(12,151,522)
Net
increase
(decrease)
..........................
1,288,672
$14,760,234
1,344,707
$14,990,913
Year
ended
February
28,
2021
Shares
sold
a
...................................
1,687,039
$19,054,402
2,439,624
$26,899,556
Shares
issued
in
reinvestment
of
distributions
..........
106,902
1,205,992
149,070
1,643,231
Shares
redeemed
...............................
(915,275)
(10,094,482)
(737,402)
(8,114,463)
Net
increase
(decrease)
..........................
878,666
$10,165,912
1,851,292
$20,428,324
Class
A1
Class
A1
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
1,181,303
$13,495,822
387,313
$4,287,400
Shares
issued
in
reinvestment
of
distributions
..........
472,813
5,378,235
416,893
4,607,805
Shares
redeemed
...............................
(2,610,509)
(29,741,104)
(2,741,178)
(30,371,942)
Net
increase
(decrease)
..........................
(956,393)
$(10,867,047)
(1,936,972)
$(21,476,737)
Year
ended
February
28,
2021
Shares
sold
...................................
761,607
$8,594,326
678,377
$7,502,680
Shares
issued
in
reinvestment
of
distributions
..........
585,413
6,594,454
546,466
6,020,781
Shares
redeemed
...............................
(4,213,467)
(47,292,546)
(3,094,963)
(34,202,349)
Net
increase
(decrease)
..........................
(2,866,447)
$(32,103,766)
(1,870,120)
$(20,678,888)
Class
C
Class
C
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
185,099
$2,145,258
247,424
$2,800,314
Shares
issued
in
reinvestment
of
distributions
..........
35,122
406,561
41,661
470,383
Shares
redeemed
a
..............................
(1,005,238)
(11,680,918)
(1,190,239)
(13,524,369)
Net
increase
(decrease)
..........................
(785,017)
$(9,129,099)
(901,154)
$(10,253,672)
Year
ended
February
28,
2021
Shares
sold
...................................
298,512
$3,417,062
361,685
$4,065,182
Shares
issued
in
reinvestment
of
distributions
..........
56,734
649,372
68,989
775,607
Shares
redeemed
a
..............................
(1,029,195)
(11,773,309)
(1,240,138)
(13,960,540)
Net
increase
(decrease)
..........................
(673,949)
$(7,706,875)
(809,464)
$(9,119,751)
Class
R6
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
136
franklintempleton.com
Annual
Report
Franklin
Louisiana
Tax-Free
Income
Fund
Franklin
Maryland
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
R6
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
232,036
$2,642,633
639,448
$7,100,082
Shares
issued
in
reinvestment
of
distributions
..........
14,889
169,248
17,177
189,952
Shares
redeemed
...............................
(57,540)
(653,190)
(104,553)
(1,159,815)
Net
increase
(decrease)
..........................
189,385
$2,158,691
552,072
$6,130,219
Year
ended
February
28,
2021
Shares
sold
...................................
175,098
$1,981,993
452,787
$5,039,224
Shares
issued
in
reinvestment
of
distributions
..........
13,518
152,403
11,648
128,695
Shares
redeemed
...............................
(115,798)
(1,302,624)
(53,606)
(588,279)
Net
increase
(decrease)
..........................
72,818
$831,772
410,829
$4,579,640
Advisor
Class
Advisor
Class
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
1,661,750
$18,954,446
941,858
$10,423,162
Shares
issued
in
reinvestment
of
distributions
..........
77,178
877,833
105,600
1,168,006
Shares
redeemed
...............................
(1,216,958)
(13,855,710)
(1,161,180)
(12,839,624)
Net
increase
(decrease)
..........................
521,970
$5,976,569
(113,722)
$(1,248,456)
Year
ended
February
28,
2021
Shares
sold
...................................
1,609,637
$18,231,625
1,338,729
$14,799,088
Shares
issued
in
reinvestment
of
distributions
..........
64,532
728,001
115,570
1,275,125
Shares
redeemed
...............................
(783,747)
(8,785,597)
(943,806)
(10,390,929)
Net
increase
(decrease)
..........................
890,422
$10,174,029
510,493
$5,683,284
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
137
franklintempleton.com
Annual
Report
Franklin
Missouri
Tax-Free
Income
Fund
Franklin
North
Carolina
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
A
Class
A
Shares:
Year
ended
February
28,
2022
Shares
sold
a
...................................
5,732,614
$68,498,844
4,872,592
$57,200,564
Shares
issued
in
reinvestment
of
distributions
..........
380,235
4,517,293
231,798
2,707,866
Shares
redeemed
...............................
(2,315,449)
(27,448,942)
(2,849,437)
(33,253,717)
Net
increase
(decrease)
..........................
3,797,400
$45,567,195
2,254,953
$26,654,713
Year
ended
February
28,
2021
Shares
sold
a
...................................
5,642,759
$67,040,168
5,572,724
$65,264,555
Shares
issued
in
reinvestment
of
distributions
..........
284,291
3,372,432
215,864
2,523,077
Shares
redeemed
...............................
(1,766,517)
(20,824,627)
(1,846,785)
(21,455,703)
Net
increase
(decrease)
..........................
4,160,533
$49,587,973
3,941,803
$46,331,929
Class
A1
Class
A1
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
1,914,178
$22,833,927
2,011,409
$23,607,466
Shares
issued
in
reinvestment
of
distributions
..........
1,251,522
14,873,739
772,462
9,028,704
Shares
redeemed
...............................
(6,551,686)
(77,858,398)
(6,731,227)
(78,752,531)
Net
increase
(decrease)
..........................
(3,385,986)
$(40,150,732)
(3,947,356)
$(46,116,361)
Year
ended
February
28,
2021
Shares
sold
...................................
1,911,701
$22,691,692
2,024,975
$23,664,287
Shares
issued
in
reinvestment
of
distributions
..........
1,350,409
15,988,418
996,256
11,626,679
Shares
redeemed
...............................
(7,199,380)
(84,958,444)
(6,089,454)
(70,749,583)
Net
increase
(decrease)
..........................
(3,937,270)
$(46,278,334)
(3,068,223)
$(35,458,617)
Class
C
Class
C
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
491,863
$5,937,874
304,354
$3,637,555
Shares
issued
in
reinvestment
of
distributions
..........
100,076
1,202,622
60,110
714,993
Shares
redeemed
a
..............................
(2,300,978)
(27,785,304)
(2,017,272)
(24,143,882)
Net
increase
(decrease)
..........................
(1,709,039)
$(20,644,808)
(1,652,808)
$(19,791,334)
Year
ended
February
28,
2021
Shares
sold
...................................
716,382
$8,568,696
648,573
$7,696,005
Shares
issued
in
reinvestment
of
distributions
..........
139,907
1,672,728
108,535
1,286,988
Shares
redeemed
a
..............................
(3,182,165)
(38,155,212)
(2,878,044)
(34,176,849)
Net
increase
(decrease)
..........................
(2,325,876)
$(27,913,788)
(2,120,936)
$(25,193,856)
Class
R6
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
138
franklintempleton.com
Annual
Report
Franklin
Missouri
Tax-Free
Income
Fund
Franklin
North
Carolina
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
R6
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
994,504
$11,869,543
823,890
$9,645,380
Shares
issued
in
reinvestment
of
distributions
..........
66,792
794,024
30,042
350,803
Shares
redeemed
...............................
(682,413)
(8,084,177)
(319,832)
(3,735,283)
Net
increase
(decrease)
..........................
378,883
$4,579,390
534,100
$6,260,900
Year
ended
February
28,
2021
Shares
sold
...................................
988,641
$11,634,147
750,298
$8,782,773
Shares
issued
in
reinvestment
of
distributions
..........
53,858
638,690
26,543
310,019
Shares
redeemed
...............................
(443,180)
(5,224,484)
(200,977)
(2,330,628)
Net
increase
(decrease)
..........................
599,319
$7,048,353
575,864
$6,762,164
Advisor
Class
Advisor
Class
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
1,952,665
$23,178,356
3,813,931
$44,691,310
Shares
issued
in
reinvestment
of
distributions
..........
152,927
1,817,572
226,022
2,640,968
Shares
redeemed
...............................
(1,772,609)
(20,988,451)
(2,705,056)
(31,661,567)
Net
increase
(decrease)
..........................
332,983
$4,007,477
1,334,897
$15,670,711
Year
ended
February
28,
2021
Shares
sold
...................................
1,858,606
$22,096,348
3,157,919
$36,942,605
Shares
issued
in
reinvestment
of
distributions
..........
141,699
1,679,643
227,496
2,657,180
Shares
redeemed
...............................
(1,649,509)
(19,356,366)
(1,904,777)
(22,116,395)
Net
increase
(decrease)
..........................
350,796
$4,419,625
1,480,638
$17,483,390
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
139
franklintempleton.com
Annual
Report
Franklin
Virginia
Tax-Free
Income
Fund
Shares
Amount
Class
A
Class
A
Shares:
Year
ended
February
28,
2022
Shares
sold
a
...................................
2,238,244
$25,192,744
Shares
issued
in
reinvestment
of
distributions
..........
153,930
1,719,894
Shares
redeemed
...............................
(2,024,950)
(22,366,779)
Net
increase
(decrease)
..........................
367,224
$4,545,859
Year
ended
February
28,
2021
Shares
sold
a
...................................
3,909,481
$43,870,008
Shares
issued
in
reinvestment
of
distributions
..........
135,068
1,512,481
Shares
redeemed
...............................
(1,139,632)
(12,600,739)
Net
increase
(decrease)
..........................
2,904,917
$32,781,750
Class
A1
Class
A1
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
671,869
$7,548,613
Shares
issued
in
reinvestment
of
distributions
..........
516,348
5,771,968
Shares
redeemed
...............................
(3,688,331)
(41,261,015)
Net
increase
(decrease)
..........................
(2,500,114)
$(27,940,434)
Year
ended
February
28,
2021
Shares
sold
...................................
760,171
$8,511,354
Shares
issued
in
reinvestment
of
distributions
..........
632,475
7,074,391
Shares
redeemed
...............................
(4,484,755)
(49,998,018)
Net
increase
(decrease)
..........................
(3,092,109)
$(34,412,273)
Class
C
Class
C
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
160,811
$1,837,277
Shares
issued
in
reinvestment
of
distributions
..........
33,496
381,657
Shares
redeemed
a
..............................
(1,680,994)
(19,236,787)
Net
increase
(decrease)
..........................
(1,486,687)
$(17,017,853)
Year
ended
February
28,
2021
Shares
sold
...................................
363,587
$4,152,393
Shares
issued
in
reinvestment
of
distributions
..........
55,876
635,616
Shares
redeemed
a
..............................
(1,555,402)
(17,726,534)
Net
increase
(decrease)
..........................
(1,135,939)
$(12,938,525)
Class
R6
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
140
franklintempleton.com
Annual
Report
3.
Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and
trustees
of
the
Trust
are
also
officers
and/or
directors
of
the
following
subsidiaries:
Franklin
Virginia
Tax-Free
Income
Fund
Shares
Amount
Class
R6
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
221,768
$2,486,760
Shares
issued
in
reinvestment
of
distributions
..........
13,291
148,577
Shares
redeemed
...............................
(126,588)
(1,411,038)
Net
increase
(decrease)
..........................
108,471
$1,224,299
Year
ended
February
28,
2021
Shares
sold
...................................
185,215
$2,078,112
Shares
issued
in
reinvestment
of
distributions
..........
12,167
136,263
Shares
redeemed
...............................
(95,613)
(1,067,734)
Net
increase
(decrease)
..........................
101,769
$1,146,641
Advisor
Class
Advisor
Class
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
3,934,898
$44,022,268
Shares
issued
in
reinvestment
of
distributions
..........
219,223
2,451,281
Shares
redeemed
...............................
(2,944,601)
(32,788,963)
Net
increase
(decrease)
..........................
1,209,520
$13,684,586
Year
ended
February
28,
2021
Shares
sold
...................................
3,965,685
$44,494,547
Shares
issued
in
reinvestment
of
distributions
..........
206,165
2,309,633
Shares
redeemed
...............................
(2,211,767)
(24,543,143)
Net
increase
(decrease)
..........................
1,960,083
$22,261,037
a
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
Subsidiary
Affiliation
Franklin
Advisers,
Inc.
(Advisers)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Distributors,
LLC
(Distributors)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
141
franklintempleton.com
Annual
Report
a.
Management
Fees
The
Funds
pay
an
investment
management
fee,
calculated
daily
and
paid
monthly,
to
Advisers
based
on
the
month-end
net
assets
of
each
of
the
Funds
as
follows:
For
the
year
ended
February
28,
2022,
each
Fund’s
gross
effective
investment
management
fee
rate
based
on
average
daily
net
assets
was
as
follows:
b.
Administrative
Fees
Under
an
agreement
with
Advisers,
FT
Services
provides
administrative
services
to
the
Funds.
The
fee
is
paid
by
Advisers
based
on
each
of
the
Funds'
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Funds.
c.
Distribution
Fees
The
Board
has
adopted
distribution
plans
for
each
share
class,
with
the
exception
of
Class
R6
and
Advisor
Class
shares,
pursuant
to
Rule
12b-1
under
the
1940
Act.
Under
the
Funds’
Class
A
and
A1
reimbursement
distribution
plans,
the
Funds
reimburse
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of
each
Fund's
shares
up
to
the
maximum
annual
plan
rate
for
each
class.
Under
the
Class
A
and
Class
A1
reimbursement
distribution
plans,
costs
exceeding
the
maximum
for
the
current
plan
year
cannot
be
reimbursed
in
subsequent
periods.
In
addition,
under
the
Funds’
Annualized
Fee
Rate
Net
Assets
0.625%
Up
to
and
including
$100
million
0.500%
Over
$100
million,
up
to
and
including
$250
million
0.450%
Over
$250
million,
up
to
and
including
$7.5
billion
0.440%
Over
$7.5
billion,
up
to
and
including
$10
billion
0.430%
Over
$10
billion,
up
to
and
including
$12.5
billion
0.420%
Over
$12.5
billion,
up
to
and
including
$15
billion
0.400%
Over
$15
billion,
up
to
and
including
$17.5
billion
0.380%
Over
$17.5
billion,
up
to
and
including
$20
billion
0.360%
In
excess
of
$20
billion
Franklin
Alabama
Tax-
Free
Income
Fund
Franklin
Georgia
Tax-
Free
Income
Fund
Franklin
Louisiana
Tax-
Free
Income
Fund
Gross
effective
investment
management
fee
rate
........
0.549%
0.501%
0.514%
Franklin
Maryland
Tax-
Free
Income
Fund
Franklin
Missouri
Tax-
Free
Income
Fund
Franklin
North
Carolina
Tax-
Free
Income
Fund
Gross
effective
investment
management
fee
rate
........
0.508%
0.473%
0.477%
Franklin
Virginia
Tax-
Free
Income
Fund
Gross
effective
investment
management
fee
rate
........
0.488%
3.
Transactions
with
Affiliates
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
142
franklintempleton.com
Annual
Report
Class
C
compensation
distribution
plans,
the
Funds
pay
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of
each
Fund's
shares
up
to
the
maximum
annual
plan
rate.
The
plan
year,
for
purposes
of
monitoring
compliance
with
the
maximum
annual
plan
rates,
is
February
1
through
January
31
for
each
Fund.
The
maximum
annual
plan
rates,
based
on
the
average
daily
net
assets,
for
each
class,
are
as
follows:
d.
Sales
Charges/Underwriting
Agreements
Front-end
sales
charges
and
contingent
deferred
sales
charges
(CDSC)
do
not
represent
expenses
of
the
Funds.
These
charges
are
deducted
from
the
proceeds
of
sales
of
fund
shares
prior
to
investment
or
from
redemption
proceeds
prior
to
remittance,
as
applicable.
Distributors
has
advised
the
Funds
of
the
following
commission
transactions
related
to
the
sales
and
redemptions
of
the
Funds'
shares
for
the
period:
Franklin
Alabama
Tax-
Free
Income
Fund
Franklin
Georgia
Tax-
Free
Income
Fund
Franklin
Louisiana
Tax-
Free
Income
Fund
Franklin
Maryland
Tax-
Free
Income
Fund
Reimbursement
Plans:
Class
A
...............................
0.25%
0.25%
0.25%
0.25%
Class
A1
..............................
0.10%
0.10%
0.10%
0.10%
Compensation
Plans:
Class
C
...............................
0.65%
0.65%
0.65%
0.65%
Franklin
Missouri
Tax-
Free
Income
Fund
Franklin
North
Carolina
Tax-
Free
Income
Fund
Franklin
Virginia
Tax-
Free
Income
Fund
Reimbursement
Plans:
Class
A
...............................
0.25%
0.25%
0.25%
Class
A1
..............................
0.10%
0.10%
0.10%
Compensation
Plans:
Class
C
...............................
0.65%
0.65%
0.65%
Franklin
Alabama
Tax-
Free
Income
Fund
Franklin
Georgia
Tax-
Free
Income
Fund
Franklin
Louisiana
Tax-
Free
Income
Fund
Franklin
Maryland
Tax-
Free
Income
Fund
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..................
$10,599
$12,638
$10,340
$6,749
CDSC
retained
...........................
$6,439
$9,851
$15,502
$12,121
Franklin
Missouri
Tax-
Free
Income
Fund
Franklin
North
Carolina
Tax-
Free
Income
Fund
Franklin
Virginia
Tax-
Free
Income
Fund
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..................
$37,929
$22,725
$9,052
CDSC
retained
...........................
$23,392
$18,684
$28,055
3.
Transactions
with
Affiliates
(continued)
c.
Distribution
Fees
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
143
franklintempleton.com
Annual
Report
e.
Transfer
Agent
Fees
Each
class
of
shares
pays
transfer
agent
fees
to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations.
The
fees
are
based
on
an
annualized
asset
based
fee
of
0.02%
plus
a
transaction
based
fee.
In
addition,
each
class
reimburses
Investor
Services
for
out
of
pocket
expenses
incurred
and,
except
for
Class
R6,
reimburses
shareholder
servicing
fees
paid
to
third
parties.
These
fees
are
allocated
daily
based
upon
their
relative
proportion
of
such
classes'
aggregate
net
assets.
Class
R6
pays
Investor
Services
transfer
agent
fees
specific
to
that
class.
For
the
year
ended
February
28,
2022,
the
Funds
paid
transfer
agent
fees
as
noted
in
the
Statements
of
Operations
of
which
the
following
amounts
were
retained
by
Investor
Services:
f.
Waivers
and
Expense
Reimbursements
Effective
April
1,
2022,
Advisers
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
and
to
assume
as
its
own
expense
certain
expenses
otherwise
payable
by
the
Funds
so
that
the
operating
expenses
(excluding
Rule
12b-1
fees,
acquired
fund
fees
and
expenses
and
certain
non-routine
expenses)
for
each
class
of
the
Funds
do
not
exceed
0.65%,
based
on
the
average
net
assets
of
each
class
until
June
30,
2023.
Total
expenses
waived
or
paid
are
not
subject
to
recapture
subsequent
to
the
Funds’
fiscal
year
end.
Investor
Services
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
so
that
the
Class
R6
transfer
agent
fees
do
not
exceed
0.03%
based
on
the
average
net
assets
of
the
class
until
June
30,
2022.
g.
Interfund
Transactions
Certain
or
all
Funds
engaged
in
purchases
and
sales
of
investments
with
funds
or
other
accounts
that
have
common
investment
managers
(or
affiliated
investment
managers),
directors,
trustees
or
officers.
These
purchases,
sales
and
the
related
net
realized
gains
(losses),
if
any,
for
the
year
ended
February
28,
2022,
were
as
follows:
Franklin
Alabama
Tax-
Free
Income
Fund
Franklin
Georgia
Tax-
Free
Income
Fund
Franklin
Louisiana
Tax-
Free
Income
Fund
Franklin
Maryland
Tax-
Free
Income
Fund
Transfer
agent
fees
........................
$76,143
$145,665
$109,094
$138,605
Franklin
Missouri
Tax-
Free
Income
Fund
Franklin
North
Carolina
Tax-
Free
Income
Fund
Franklin
Virginia
Tax-
Free
Income
Fund
Transfer
agent
fees
........................
$290,827
$248,297
$193,881
Franklin
Alabama
Tax-
Free
Income
Fund
Franklin
Georgia
Tax-
Free
Income
Fund
Franklin
Louisiana
Tax-
Free
Income
Fund
Franklin
Maryland
Tax-
Free
Income
Fund
Purchases
..............................
$2,954,498
$19,960,130
—
$3,066,195
Sales
..................................
$2,940,033
$17,661,455
—
$7,500,000
Realized
gain
(loss)
.......................
$(150,558)
$(164,144)
—
—
3.
Transactions
with
Affiliates
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
144
franklintempleton.com
Annual
Report
4.
Expense
Offset
Arrangement
The
Funds
have entered
into
an
arrangement
with
their
custodian
whereby
credits
realized
as
a
result
of
uninvested
cash
balances
are
used
to
reduce
a
portion
of
the
Funds'
custodian
expenses.
During
the year
ended
February
28,
2022 the
custodian
fees
were
reduced
as
noted
in
the
Statements
of
Operations.
5.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains. 
At
February
28,
2022,
the
capital
loss
carryforwards
were
as
follows:
Franklin
Missouri
Tax-
Free
Income
Fund
Franklin
North
Carolina
Tax-
Free
Income
Fund
Franklin
Virginia
Tax-
Free
Income
Fund
Purchases
..............................
$25,141,592
$26,039,192
$29,152,746
Sales
..................................
$26,051,100
$35,826,193
$18,351,440
Realized
gain
(loss)
.......................
$(48,894)
$(546,638)
$(263,054)
Franklin
Alabama
Tax-
Free
Income
Fund
Franklin
Georgia
Tax-
Free
Income
Fund
Franklin
Louisiana
Tax-
Free
Income
Fund
Franklin
Maryland
Tax-
Free
Income
Fund
1
1
1
1
1
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
.............................
$
3,038,890
$
6,439,768
$
11,971,155
$
13,467,868
Long
term
.............................
11,674,896
18,739,251
12,646,173
28,256,478
Total
capital
loss
carryforwards
............
$14,713,786
$25,179,019
$24,617,328
$41,724,346
Franklin
Missouri
Tax-
Free
Income
Fund
Franklin
North
Carolina
Tax-
Free
Income
Fund
Franklin
Virginia
Tax-
Free
Income
Fund
1
1
1
1
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
.............................
$
14,858,296
$
27,380,059
$
20,336,720
Long
term
.............................
68,194,531
68,859,952
36,888,528
Total
capital
loss
carryforwards
............
$83,052,827
$96,240,011
$57,225,248
3.
Transactions
with
Affiliates
(continued)
g.
Interfund
Transactions
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
145
franklintempleton.com
Annual
Report
During
the
year
ended
February
28,
2022,
the
following
Funds
utilized
capital
loss
carryforwards
as
follows:
The
tax
character
of
distributions
paid
during
the
years
ended
February
28,
2022
and
February
28,
2021,
were
as
follows:
Franklin
Alabama
Tax-
Free
Income
Fund
Franklin
Georgia
Tax-
Free
Income
Fund
Franklin
Louisiana
Tax-
Free
Income
Fund
Franklin
Maryland
Tax-
Free
Income
Fund
Capital
loss
utilized
carryforwards
....
$1,245,822
$639,144
$3,834,603
$317,131
Franklin
Missouri
Tax-
Free
Income
Fund
Franklin
North
Carolina
Tax-
Free
Income
Fund
Franklin
Virginia
Tax-
Free
Income
Fund
Capital
loss
utilized
carryforwards
....
$1,683,007
$1,963,118
$2,831,318
Franklin
Alabama
Tax-Free
Income
Fund
Franklin
Georgia
Tax-Free
Income
Fund
2022
2021
2022
2021
Distributions
paid
from:
Tax
exempt
income
......................
$5,077,097
$6,179,926
$11,024,400
$12,051,690
Franklin
Louisiana
Tax-Free
Income
Fund
Franklin
Maryland
Tax-Free
Income
Fund
2022
2021
2022
2021
Distributions
paid
from:
Tax
exempt
income
......................
$8,448,819
$9,807,905
$9,190,159
$11,129,021
Franklin
Missouri
Tax-Free
Income
Fund
Franklin
North
Carolina
Tax-Free
Income
Fund
2022
2021
2022
2021
Distributions
paid
from:
Tax
exempt
income
......................
$24,737,222
$25,353,015
$16,705,295
$20,267,382
Franklin
Virginia
Tax-Free
Income
Fund
2022
2021
Distributions
paid
from:
Tax
exempt
income
......................
$11,623,226
$13,161,636
5.
Income
Taxes
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
146
franklintempleton.com
Annual
Report
At
February
28,
2022,
the
cost
of
investments,
net
unrealized
appreciation
(depreciation),
undistributed
tax
exempt
income
and
undistributed
ordinary
income
for
income
tax
purposes
were
as
follows:
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatments
of
wash
sales.
6.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities)
for
the
year
ended
February
28,
2022,
were
as
follows:
Franklin
Alabama
Tax-
Free
Income
Fund
Franklin
Georgia
Tax-
Free
Income
Fund
Franklin
Louisiana
Tax-
Free
Income
Fund
Franklin
Maryland
Tax-
Free
Income
Fund
a
a
a
a
a
Cost
of
investments
.......................
$230,507,861
$445,026,371
$351,663,615
$385,537,011
Unrealized
appreciation
.....................
$10,102,371
$19,296,096
$13,547,768
$14,373,459
Unrealized
depreciation
.....................
(2,658,767)
(10,121,557)
(3,821,863)
(7,404,416)
Net
unrealized
appreciation
(depreciation)
.......
$7,443,604
$9,174,539
$9,725,905
$6,969,043
Distributable
earnings:
Undistributed
ordinary
income
................
$30,454
$176,220
$26,184
$28,286
Undistributed
tax
exempt
income
..............
40,880
413,845
324,044
496,732
Total
distributable
earnings
..................
$71,334
$590,065
$350,228
$525,018
Franklin
Missouri
Tax-
Free
Income
Fund
Franklin
North
Carolina
Tax-
Free
Income
Fund
Franklin
Virginia
Tax-
Free
Income
Fund
a
a
a
a
Cost
of
investments
.......................
$937,075,215
$805,941,843
$563,918,166
Unrealized
appreciation
.....................
$39,093,607
$27,984,148
$17,421,695
Unrealized
depreciation
.....................
(13,927,072)
(11,535,470)
(8,558,963)
Net
unrealized
appreciation
(depreciation)
.......
$25,166,535
$16,448,678
$8,862,732
Distributable
earnings:
Undistributed
ordinary
income
................
$143,394
$46,436
$30,023
Undistributed
tax
exempt
income
..............
1,685,381
1,528,785
613,194
Total
distributable
earnings
..................
$1,828,775
$1,575,221
$643,217
Franklin
Alabama
Tax-
Free
Income
Fund
Franklin
Georgia
Tax-
Free
Income
Fund
Franklin
Louisiana
Tax-
Free
Income
Fund
Franklin
Maryland
Tax-
Free
Income
Fund
Purchases
..............................
$50,612,876
$107,317,113
$63,509,621
$61,685,775
Sales
..................................
$59,452,524
$107,497,961
$74,839,285
$70,586,560
5.
Income
Taxes
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
147
franklintempleton.com
Annual
Report
7.
Defaulted
Securities
Certain
or
all
Funds
held
defaulted
securities
and/or
other
securities
for
which
the
income
has
been
deemed
uncollectible.
The
Funds
discontinue
accruing
income
on
securities
for
which
income
has
been
deemed
uncollectible
and
provide
an
estimate
for
losses
on
interest
receivable.
The
securities
have
been
identified
in
the
accompanying
Statements
of
Investments.
At
February
28,
2022,
the
aggregate
value
of
these
securities
was
as
follows: 
8.
Concentration
of
Risk
Certain
or
all
Funds
invest
a
large
percentage
of
their
total
assets
in
obligations
of
issuers
within
their respective
state
U.S.
territories,
and
the
District
of
Columbia.
Such
concentration
may
subject
the
Funds
to
risks
associated
with
industrial
or
regional
matters,
and
economic,
political
or
legal
developments
occurring
within
those
states,
U.S.
territories,
and
the
District
of
Columbia.
In
addition,
investments
in
these
securities
are
sensitive
to
interest
rate
changes
and
credit
risk
of
the
issuer
and
may
subject
the
Funds
to
increased
market
volatility.
The
market
for
these
investments
may
be
limited,
which
may
make
them
difficult
to
buy
or
sell.
9.
Geopolitical
Risk 
On
February
24,
2022,
Russia
engaged
in
military
actions
in
the
sovereign
territory
of
Ukraine.
The
current
political
and
financial
uncertainty
surrounding
Russia
and
Ukraine
may
increase
market
volatility
and
the
economic
risk
of
investing
in
securities
in
these
countries
and
may
also
cause
uncertainty
for
the
global
economy
and
broader
financial
markets.
The
ultimate
fallout
and
long-term
impact
from
these
events
are
not
known.
The
Fund
will
continue
to
assess
the
impact
on
valuations
and
liquidity
and
will
take
any
potential
actions
needed
in
accordance
with
procedures
approved
by
the
Board.
10. Novel
Coronavirus
Pandemic 
The
global
outbreak
of
the
novel
coronavirus
disease,
known
as
COVID-19, has
caused
adverse
effects
on
many
companies,
sectors,
nations,
regions
and
the
markets
in
general, and
may
continue for
an unpredictable duration.
The
effects
of
this
pandemic
may
materially
impact
the
value
and
performance
of
the
Funds, their ability
to
buy
and
sell
fund
investments
at
appropriate
valuations
and their ability
to
achieve their investment
objectives.
Franklin
Missouri
Tax-
Free
Income
Fund
Franklin
North
Carolina
Tax-
Free
Income
Fund
Franklin
Virginia
Tax-
Free
Income
Fund
Purchases
..............................
$234,975,863
$197,424,643
$214,193,618
Sales
..................................
$216,234,379
$234,143,238
$254,015,015
Value
Percentage
of
Net
Assets
Franklin
Georgia
Tax-Free
Income
Fund
..........................................
$
2,352,333
0.5%
Franklin
Louisiana
Tax-Free
Income
Fund
.........................................
885,994
0.2%
Franklin
Maryland
Tax-Free
Income
Fund
.........................................
2,054,000
0.5%
Franklin
Missouri
Tax-Free
Income
Fund
..........................................
4,877,600
0.5%
Franklin
North
Carolina
Tax-Free
Income
Fund
.....................................
4,269,350
0.5%
Franklin
Virginia
Tax-Free
Income
Fund
...........................................
3,050,475
0.5%
6.
Investment
Transactions
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
148
franklintempleton.com
Annual
Report
11.
Credit
Facility
The
Funds,
together
with
other
U.S.
registered
and
foreign
investment
funds
(collectively,
Borrowers),
managed
by
Franklin
Templeton,
are
borrowers
in
a
joint
syndicated
senior
unsecured
credit
facility
totaling
$2.675
billion
(Global
Credit
Facility)
which
matures
on
February
3,
2023.
This
Global
Credit
Facility
provides
a
source
of
funds
to
the
Borrowers
for
temporary
and
emergency
purposes,
including
the
ability
to
meet
future
unanticipated
or
unusually
large
redemption
requests.
Under
the
terms
of
the
Global
Credit
Facility,
the
Funds
shall,
in
addition
to
interest
charged
on
any
borrowings
made
by
the
Funds
and
other
costs
incurred
by
the
Funds,
pay
their
share
of
fees
and
expenses
incurred
in
connection
with
the
implementation
and
maintenance
of
the
Global
Credit
Facility,
based
upon
their
relative
share
of
the
aggregate
net
assets
of
all
of
the
Borrowers,
including
an
annual
commitment
fee
of
0.15%
based
upon
the
unused
portion
of
the
Global
Credit
Facility.
These
fees
are
reflected
in
other
expenses
in
the
Statements
of
Operations.
During
the
year ended
fiscal
year,
the
Funds
did
not
use
the
Global
Credit
Facility.
12.
Fair
Value
Measurements
The Funds
follow
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Funds'
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the Funds' financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
–
significant
unobservable
inputs
(including
the Funds'
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
At
February
28,
2022,
all
of
the
Funds'
investments
in
financial
instruments
carried
at
fair
value
were
valued
using
Level
2
inputs.
13.
Subsequent
Events
The
Funds
have
evaluated
subsequent
events
through
the
issuance
of
the
financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure
other
than
those
already
disclosed
in
the
financial
statements.
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
149
franklintempleton.com
Annual
Report
Abbreviations
Selected
Portfolio
AGMC
Assured
Guaranty
Municipal
Corp.
AMBAC
American
Municipal
Bond
Assurance
Corp.
BAM
Build
America
Mutual
Assurance
Co.
COP
Certificate
of
Participation
ETM
Escrowed
to
Maturity
GNMA
Government
National
Mortgage
Association
GO
General
Obligation
LOC
Letter
of
Credit
NATL
National
Reinsurance
Corp.
SPA
Standby
Purchase
Agreement
Franklin
Tax-Free
Trust
Report
of
Independent
Registered
Public
Accounting
Firm
150
franklintempleton.com
Annual
Report
To
the
Board
of
Trustees
of
Franklin
Tax-Free
Trust
and
Shareholders
of
Franklin
Alabama
Tax-Free
Income
Fund,
Franklin
Georgia
Tax-Free
Income
Fund,
Franklin
Louisiana
Tax-Free
Income
Fund,
Franklin
Maryland
Tax-Free
Income
Fund,
Franklin
Missouri
Tax-Free
Income
Fund,
Franklin
North
Carolina
Tax-Free
Income
Fund,
and
Franklin
Virginia
Tax-Free
Income
Fund.
Opinion
on
the
Financial
Statements
We
have
audited
the
accompanying
statements
of
assets
and
liabilities,
including
the
statements
of
investments,
of
Franklin
Alabama
Tax-Free
Income
Fund,
Franklin
Georgia
Tax-Free
Income
Fund,
Franklin
Louisiana
Tax-Free
Income
Fund,
Franklin
Maryland
Tax-Free
Income
Fund,
Franklin
Missouri
Tax-Free
Income
Fund,
Franklin
North
Carolina
Tax-Free
Income
Fund,
and
Franklin
Virginia
Tax-Free
Income
Fund
(seven
of
the
funds
constituting
Franklin
Tax-Free
Trust,
hereafter
collectively
referred
to
as
the
"Funds")
as
of
February
28,
2022,
the
related
statements
of
operations
for
the
year
ended
February
28,
2022,
the
statements
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
ended
February
28,
2022,
including
the
related
notes,
and
the
financial
highlights
for
each
of
the
periods
indicated
therein
(collectively
referred
to
as
the
“financial
statements”).
In
our
opinion,
the
financial
statements
present
fairly,
in
all
material
respects,
the
financial
position
of
each
of
the
Funds
as
of
February
28,
2022,
the
results
of
each
of
their
operations
for
the
year
then
ended,
the
changes
in
each
of
their
net
assets
for
each
of
the
two
years
in
the
period
ended
February
28,
2022
and
each
of
the
financial
highlights
for
each
of
the
periods
indicated
therein
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America.
Basis
for
Opinions
These
financial
statements
are
the
responsibility
of
the
Funds’
management.
Our
responsibility
is
to
express
an
opinion
on
the
Funds’
financial
statements
based
on
our
audits.
We
are
a
public
accounting
firm
registered
with
the
Public
Company
Accounting
Oversight
Board
(United
States)
(PCAOB)
and
are
required
to
be
independent
with
respect
to
the
Funds
in
accordance
with
the
U.S.
federal
securities
laws
and
the
applicable
rules
and
regulations
of
the
Securities
and
Exchange
Commission
and
the
PCAOB.
We
conducted
our
audits
of
these
financial
statements
in
accordance
with
the
standards
of
the
PCAOB.
Those
standards
require
that
we
plan
and
perform
the
audit
to
obtain
reasonable
assurance
about
whether
the
financial
statements
are
free
of
material
misstatement,
whether
due
to
error
or
fraud.
Our
audits
included
performing
procedures
to
assess
the
risks
of
material
misstatement
of
the
financial
statements,
whether
due
to
error
or
fraud,
and
performing
procedures
that
respond
to
those
risks.
Such
procedures
included
examining,
on
a
test
basis,
evidence
regarding
the
amounts
and
disclosures
in
the
financial
statements.
Our
audits
also
included
evaluating
the
accounting
principles
used
and
significant
estimates
made
by
management,
as
well
as
evaluating
the
overall
presentation
of
the
financial
statements.
Our
procedures
included
confirmation
of
securities
owned
as
of
February
28,
2022
by
correspondence
with
the
custodian
and
brokers;
when
replies
were
not
received
from
brokers,
we
performed
other
auditing
procedures.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinions.
PricewaterhouseCoopers
LLP
San
Francisco,
California
April
18,
2022
We
have
served
as
the
auditor
of
one
or
more
investment
companies
in
the
Franklin
Templeton
Group
of
Funds
since
1948.
Franklin
Tax-Free
Trust
Tax
Information
(unaudited)
151
franklintempleton.com
Annual
Report
By
mid-February,
tax
information
related
to
a
shareholder's
proportionate
share
of
distributions
paid
during
the
preceding
calendar
year
will
be
received,
if
applicable.
Please
also
refer
to
www.franklintempleton.com
for
per
share
tax
information
related
to
any
distributions
paid
during
the
preceding
calendar
year.
Shareholders
are
advised
to
consult
with
their
tax
advisors
for
further
information
on
the
treatment
of
these
amounts
on
their
tax
returns.
The
following
tax
information
for
the
Funds
is
required
to
be
furnished
to
shareholders
with
respect
to
income
earned
and
distributions
paid
during
their
fiscal
year.
The
Funds
hereby
report
the
following
amounts,
or
if
subsequently
determined
to
be
different,
the
maximum
allowable
amounts,
for
the
fiscal
year
ended
February
28,
2022:
Pursuant
to:
Franklin
Alabama
Tax-Free
Income
Fund
Franklin
Georgia
Tax-Free
Income
Fund
Franklin
Louisiana
Tax-Free
Income
Fund
Exempt-Interest
Dividends
Distributed
§852(b)(5)(A)
$5,077,097
$11,024,400
$8,448,819
Pursuant
to:
Franklin
Maryland
Tax-Free
Income
Fund
Franklin
Missouri
Tax-Free
Income
Fund
Franklin
North
Carolina
Tax-Free
Income
Fund
Exempt-Interest
Dividends
Distributed
§852(b)(5)(A)
$9,190,159
$24,737,222
$16,705,295
Pursuant
to:
Franklin
Virginia
Tax-Free
Income
Fund
Exempt-Interest
Dividends
Distributed
§852(b)(5)(A)
$11,623,226
Franklin
Tax-Free
Trust
Board
Members
and
Officers
152
franklintempleton.com
Annual
Report
The
name,
year
of
birth
and
address
of
the
officers
and
board
members,
as
well
as
their
affiliations,
positions
held
with
the
Trust,
principal
occupations
during
at
least
the
past
five
years
and
number
of
U.S.
registered
portfolios
overseen
in
the
Franklin
Templeton/Legg
Mason
fund
complex,
are
shown
below.
Generally,
each
board
member
serves
until
that
person’s
successor
is
elected
and
qualified.
Independent
Board
Members
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Harris
J.
Ashton
(1932)
Trustee
Since
1984
120
Bar-S
Foods
(meat
packing
company)
(1981-2010).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Director,
RBC
Holdings,
Inc.
(bank
holding
company)
(until
2002);
and
President,
Chief
Executive
Officer
and
Chairman
of
the
Board,
General
Host
Corporation
(nursery
and
craft
centers)
(until
1998).
Terrence
J.
Checki
(1945)
Trustee
Since
2017
101
Hess
Corporation
(exploration
of
oil
and
gas)
(2014-present).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Member
of
the
Council
on
Foreign
Relations
(1996-present);
Member
of
the
National
Committee
on
U.S.-China
Relations
(1999-present);
member
of
the
Board
of
Trustees
of
the
Economic
Club
of
New
York
(2013-present);
member
of
the
Board
of
Trustees
of
the
Foreign
Policy
Association
(2005-present);
member
of
the
board
of
directors
of
Council
of
the
Americas
(2007-present)
and
the
Tallberg
Foundation
(2018-present);
and
formerly
,
Executive
Vice
President
of
the
Federal
Reserve
Bank
of
New
York
and
Head
of
its
Emerging
Markets
and
Internal
Affairs
Group
and
Member
of
Management
Committee
(1995-2014);
and
Visiting
Fellow
at
the
Council
on
Foreign
Relations
(2014).
Mary
C.
Choksi
(1950)
Trustee
Since
2014
121
Omnicom
Group
Inc.
(advertising
and
marketing
communications
services)
(2011-present)
and
White
Mountains
Insurance
Group,
Ltd.
(holding
company)
(2017-present);
and
formerly
,
Avis
Budget
Group
Inc.
(car
rental)
(2007-2020).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Founder
and
Senior
Advisor,
Strategic
Investment
Group
(investment
management
group)
(2015-2017);
Founding
Partner
and
Senior
Managing
Director,
Strategic
Investment
Group
(1987-2015);
Founding
Partner
and
Managing
Director,
Emerging
Markets
Management
LLC
(investment
management
firm)
(1987-2011);
and
Loan
Officer/Senior
Loan
Officer/Senior
Pension
Investment
Officer,
World
Bank
Group
(international
financial
institution)
(1977-1987).
Franklin
Tax-Free
Trust
153
franklintempleton.com
Annual
Report
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Edith
E.
Holiday
(1952)
Lead
Independent
Trustee
Trustee
since
1998
and
Lead
Independent
Trustee
since
2019
121
Hess
Corporation
(exploration
of
oil
and
gas)
(1993-present),
Santander
Consumer
USA
Holdings,
Inc.
(consumer
finance)
(2016-present);
Santander
Holdings
USA
(holding
company)
(2019-present);
and
formerly
,
Canadian
National
Railway
(railroad)
(2001-2021),
White
Mountains
Insurance
Group,
Ltd.
(holding
company)
(2004-
2021),
RTI
International
Metals,
Inc.
(manufacture
and
distribution
of
titanium)
(1999-2015)
and
H.J.
Heinz
Company
(processed
foods
and
allied
products)
(1994-2013).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
or
Trustee
of
various
companies
and
trusts;
and
formerly
,
Assistant
to
the
President
of
the
United
States
and
Secretary
of
the
Cabinet
(1990-1993);
General
Counsel
to
the
United
States
Treasury
Department
(1989-1990);
and
Counselor
to
the
Secretary
and
Assistant
Secretary
for
Public
Affairs
and
Public
Liaison-United
States
Treasury
Department
(1988-1989).
J.
Michael
Luttig
(1954)
Trustee
Since
2009
121
Boeing
Capital
Corporation
(aircraft
financing)
(2006-2010).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Counselor
and
Special
Advisor
to
the
CEO
and
Board
of
Directors
of
the
Coca-Cola
Company
(beverage
company)
(2021-present);
and
formerly
,
Counselor
and
Senior
Advisor
to
the
Chairman,
CEO,
and
Board
of
Directors,
of
The
Boeing
Company
(aerospace
company),
and
member
of
the
Executive
Council
(2019-2020);
Executive
Vice
President,
General
Counsel
and
member
of
the
Executive
Council,
The
Boeing
Company
(2006-2019);
and
Federal
Appeals
Court
Judge,
United
States
Court
of
Appeals
for
the
Fourth
Circuit
(1991-2006).
Larry
D.
Thompson
(1945)
Trustee
Since
2007
121
Graham
Holdings
Company
(education
and
media
organization)
(2011-2021);
The
Southern
Company
(energy
company)
(2014-2020;
previously
2010-
2012)
and
Cbeyond,
Inc.
(business
communications
provider)
(2010-
2012).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
Counsel,
Finch
McCranie,
LLP
(law
firm)
(2015-present);
John
A.
Sibley
Professor
of
Corporate
and
Business
Law,
University
of
Georgia
School
of
Law
(2015-present;
previously
2011-2012);
and
formerly
,
Independent
Compliance
Monitor
and
Auditor,
Volkswagen
AG
(manufacturer
of
automobiles
and
commercial
vehicles)
(2017-2020);
Executive
Vice
President
-
Government
Affairs,
General
Counsel
and
Corporate
Secretary,
PepsiCo,
Inc.
(consumer
products)
(2012-2014);
Senior
Vice
President
-
Government
Affairs,
General
Counsel
and
Secretary,
PepsiCo,
Inc.
(2004-2011);
Senior
Fellow
of
The
Brookings
Institution
(2003-2004);
Visiting
Professor,
University
of
Georgia
School
of
Law
(2004);
and
Deputy
Attorney
General,
U.S.
Department
of
Justice
(2001-2003).
Independent
Board
Members
(continued)
Franklin
Tax-Free
Trust
154
franklintempleton.com
Annual
Report
Interested
Board
Members
and
Officers
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Valerie
M.
Williams
(1956)
Trustee
Since
May
2021
101
Omnicom
Group,
Inc.
(advertising
and
marketing
communications
services)
(2016-present),
DTE
Energy
Co.
(gas
and
electric
utility)
(2018-present),
Devon
Energy
Corporation
(exploration
and
production
of
oil
and
gas)
(2021-present);
and
formerly
,
WPX
Energy,
Inc.
(exploration
and
production
of
oil
and
gas)
(2018-
2021).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Regional
Assurance
Managing
Partner,
Ernst
&
Young
LLP
(public
accounting)
(2005-2016),
various
roles
of
increasing
responsibility
at
Ernst
&
Young
(1981-2005).
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
**Gregory
E.
Johnson
(1961)
Trustee
Since
2007
132
None
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Executive
Chairman,
Chairman
of
the
Board
and
Director,
Franklin
Resources,
Inc.;
officer
and/or
director
or
trustee,
as
the
case
may
be,
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex;
Vice
Chairman,
Investment
Company
Institute;
and
formerly
,
Chief
Executive
Officer
(2013-2020)
and
President
(1994-2015)
Franklin
Resources,
Inc.
**Rupert
H.
Johnson,
Jr.
(1940)
Chairman
of
the
Board
and
Trustee
Since
2013
121
None
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
(Vice
Chairman),
Franklin
Resources,
Inc.;
Director,
Franklin
Advisers,
Inc.;
and
officer
and/or
director
or
trustee,
as
the
case
may
be,
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Ben
Barber
(1969)
Vice
President
Since
2020
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Vice
President,
Franklin
Advisers,
Inc.;
Director,
Municipal
Bonds;
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex;
and
formerly
,
Co-Head
of
Municipal
Bonds,
Goldman
Sachs
Asset
Management
(1999-2020).
Alison
E.
Baur
(1964)
Vice
President
Since
2012
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Deputy
General
Counsel,
Franklin
Templeton;
and
officer
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Independent
Board
Members
(continued)
Franklin
Tax-Free
Trust
155
franklintempleton.com
Annual
Report
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Breda
M.
Beckerle
(1958)
Chief
Compliance
Officer
Since
2020
Not
Applicable
Not
Applicable
280
Park
Avenue
New
York,
NY
10017
Principal
Occupation
During
at
Least
the
Past
5
Years:
Chief
Compliance
Officer,
Fiduciary
Investment
Management
International,
Inc.,
Franklin
Advisers,
Inc.,
Franklin
Mutual
Advisers,
LLC,
Franklin
Templeton
Institutional,
LLC;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Sonal
Desai,
Ph.D.
(1963)
President
and
Chief
Executive
Officer
–
Investment
Management
Since
2018
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
and
Executive
Vice
President,
Franklin
Advisers,
Inc.;
Executive
Vice
President,
Franklin
Templeton
Institutional,
LLC;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Steven
J.
Gray
(1955)
Vice
President
and
Co-Secretary
Vice
President
since
2009
and
Co-Secretary
since
2019
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Associate
General
Counsel,
Franklin
Templeton;
Vice
President,
FASA,
LLC;
Assistant
Secretary,
Franklin
Distributors,
LLC;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Matthew
T.
Hinkle
(1971)
Chief
Executive
Officer
–
Finance
and
Administration
Since
2017
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Vice
President,
Franklin
Templeton
Services,
LLC;
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex;
and
formerly
,
Vice
President,
Global
Tax
(2012-April
2017)
and
Treasurer/Assistant
Treasurer,
Franklin
Templeton
(2009-2017).
Susan
Kerr
(1949)
Vice
President
–
AML
Compliance
Since
July
2021
Not
Applicable
Not
Applicable
620
Eighth
Avenue
New
York,
NY
10018
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Compliance
Analyst,
Franklin
Templeton;
Chief
Anti-Money
Laundering
Compliance
Officer,
Legg
Mason
&
Co.,
or
its
affiliates;
Anti
Money
Laundering
Compliance
Officer;
Senior
Compliance
Officer,
LMIS;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Christopher
Kings
(1974)
Chief
Financial
Officer,
Chief
Accounting
Officer
and
Treasurer
Since
January
2022
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Treasurer,
U.S.
Fund
Administration
&
Reporting;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Navid
J.
Tofigh
(1972)
Vice
President
Since
2015
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Associate
General
Counsel,
Franklin
Templeton;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Interested
Board
Members
and
Officers
(continued)
Franklin
Tax-Free
Trust
156
franklintempleton.com
Annual
Report
*We
base
the
number
of
portfolios
on
each
separate
series
of
the
U.S.
registered
investment
companies
within
the
Franklin
Templeton/Legg
Mason
fund
complex.
These
portfolios
have
a
common
investment
manager
or
affiliated
investment
managers.
**Gregory
E.
Johnson
is
considered
to
be
an
interested
person
of
the
Fund
under
the
federal
securities
laws
due
to
his
position
as
an
officer
and
director
of
Franklin
Resources,
Inc.
(Resources),
which
is
the
parent
company
of
the
Fund’s
investment
manager
and
distributor.
Rupert
H.
Johnson,
Jr.
is
considered
to
be
an
interested
person
of
the
Fund
under
the
federal
securities
laws
due
to
his
position
as
an
officer
and
director
and
major
shareholder
of
Resources.
Note
1:
Rupert
H.
Johnson,
Jr.
is
the
uncle
of
Gregory
E.
Johnson.
Note
2:
Officer
information
is
current
as
of
the
date
of
this
report.
It
is
possible
that
after
this
date,
information
about
officers
may
change.
The
Sarbanes-Oxley
Act
of
2002
and
Rules
adopted
by
the
Securities
and
Exchange
Commission
require
the
Fund
to
disclose
whether
the
Fund’s
Audit
Committee
includes
at
least
one
member
who
is
an
audit
committee
financial
expert
within
the
meaning
of
such
Act
and
Rules.
The
Fund’s
Board
has
determined
that
there
is
at
least
one
such
financial
expert
on
the
Audit
Committee
and
has
designated
Mary
C.
Choksi
as
its
audit
committee
financial
expert.
The
Board
believes
that
Ms.
Choksi
qualifies
as
such
an
expert
in
view
of
her
extensive
business
background
and
experience.
She
served
as
a
director
of
Avis
Budget
Group,
Inc.
(2007
to
2020)
and
formerly,
Founder
and
Senior
Advisor,
Strategic
Investment
Group
(1987
to
2017).
Ms.
Choksi
has
been
a
Member
of
the
Fund’s
Audit
Committee
since
2014.
As
a
result
of
such
background
and
experience,
the
Board
believes
that
Ms.
Choksi
has
acquired
an
understanding
of
generally
accepted
accounting
principles
and
financial
statements,
the
general
application
of
such
principles
in
connection
with
the
accounting
estimates,
accruals
and
reserves,
and
analyzing
and
evaluating
financial
statements
that
present
a
breadth
and
level
of
complexity
of
accounting
issues
generally
comparable
to
those
of
the
Fund,
as
well
as
an
understanding
of
internal
controls
and
procedures
for
financial
reporting
and
an
understanding
of
audit
committee
functions.
Ms.
Choksi
is
an
independent
Board
member
as
that
term
is
defined
under
the
relevant
Securities
and
Exchange
Commission
Rules
and
Releases.
The
Statement
of
Additional
Information
(SAI)
includes
additional
information
about
the
board
members
and
is
available,
without
charge,
upon
request.
Shareholders
may
call
(800)
DIAL
BEN/342-5236
to
request
the
SAI.
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Craig
S.
Tyle
(1960)
Vice
President
Since
2005
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
General
Counsel
and
Executive
Vice
President,
Franklin
Resources,
Inc.;
and
officer
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Lori
A.
Weber
(1964)
Vice
President
and
Co-Secretary
Vice
President
since
2011
and
Co-Secretary
since
2019
Not
Applicable
Not
Applicable
300
S.E.
2nd
Street
Fort
Lauderdale,
FL
33301-
1923
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Associate
General
Counsel,
Franklin
Templeton;
Assistant
Secretary,
Franklin
Resources,
Inc.;
Vice
President
and
Secretary,
Templeton
Investment
Counsel,
LLC;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Interested
Board
Members
and
Officers
(continued)
Franklin
Tax-Free
Trust
Shareholder
Information
157
franklintempleton.com
Annual
Report
Board
Approval
of
Investment
Management
Agreements
FRANKLIN
TAX-FREE
TRUST
Franklin
Alabama
Tax-Free
Income
Fund
Franklin
Georgia
Tax-Free
Income
Fund
Franklin
Louisiana
Tax-Free
Income
Fund
Franklin
Maryland
Tax-Free
Income
Fund
Franklin
Missouri
Tax-Free
Income
Fund
Franklin
North
Carolina
Tax-Free
Income
Fund
Franklin
Virginia
Tax-Free
Income
Fund
(each
a
Fund)
At
an
in-person
meeting
held
on
February
28,
2022
(Meeting),
the
Board
of
Trustees
(Board)
of
Franklin
Tax-
Free
Trust
(Trust),
including
a
majority
of
the
trustees
who
are
not
“interested
persons”
as
defined
in
the
Investment
Company
Act
of
1940
(Independent
Trustees),
reviewed
and
approved
the
continuance
of
the
investment
management
agreement
between
Franklin
Advisers,
Inc.
(Manager)
and
the
Trust,
on
behalf
of
each
Fund
(each
a
Management
Agreement)
for
an
additional
one-year
period.
The
Independent
Trustees
received
advice
from
and
met
separately
with
Independent
Trustee
counsel
in
considering
whether
to
approve
the
continuation
of
each
Management
Agreement.
Although
the
Management
Agreements
for
the
Funds
were
considered
at
the
same
Board
meeting,
the
Board
considered
the
information
provided
to
it
about
the
Funds
together
and
with
respect
to
each
Fund
separately
as
the
Board
deemed
appropriate.
In
considering
the
continuation
of
each
Management
Agreement,
the
Board
reviewed
and
considered
information
provided
by
the
Manager
at
the
Meeting
and
throughout
the
year
at
meetings
of
the
Board
and
its
committees.
The
Board
also
reviewed
and
considered
information
provided
in
response
to
a
detailed
set
of
requests
for
information
submitted
to
the
Manager
by
Independent
Trustee
counsel
on
behalf
of
the
Independent
Trustees
in
connection
with
the
annual
contract
renewal
process.
In
addition,
prior
to
the
Meeting,
the
Independent
Trustees
held
a
virtual
contract
renewal
meeting
at
which
the
Independent
Trustees
first
conferred
amongst
themselves
and
Independent
Trustee
counsel
about
contract
renewal
matters;
and
then
met
with
management
to
request
additional
information
that
the
Independent
Trustees
reviewed
and
considered
at
the
Meeting.
The
Board
reviewed
and
considered
all
of
the
factors
it
deemed
relevant
in
approving
the
continuance
of
each
Management
Agreement,
including,
but
not
limited
to:
(i)
the
nature,
extent
and
quality
of
the
services
provided
by
the
Manager;
(ii)
the
investment
performance
of
each
Fund;
(iii)
the
costs
of
the
services
provided
and
profits
realized
by
the
Manager
and
its
affiliates
from
the
relationship
with
each
Fund;
(iv)
the
extent
to
which
economies
of
scale
are
realized
as
each
Fund
grows;
and
(v)
whether
fee
levels
reflect
these
economies
of
scale
for
the
benefit
of
Fund
investors.
In
approving
the
continuance
of
each
Management
Agreement,
the
Board,
including
a
majority
of
the
Independent
Trustees,
determined
that
the
terms
of
the
Management
Agreement
are
fair
and
reasonable
and
that
the
continuance
of
such
Management
Agreement
is
in
the
best
interests
of
the
applicable
Fund
and
its
shareholders.
While
attention
was
given
to
all
information
furnished,
the
following
discusses
some
primary
factors
relevant
to
the
Board’s
determination.
Nature,
Extent
and
Quality
of
Services
The
Board
reviewed
and
considered
information
regarding
the
nature,
extent
and
quality
of
investment
management
services
provided
by
the
Manager
and
its
affiliates
to
the
Funds
and
their
shareholders.
This
information
included,
among
other
things,
the
qualifications,
background
and
experience
of
the
senior
management
and
investment
personnel
of
the
Manager,
as
well
as
information
on
succession
planning
where
appropriate;
the
structure
of
investment
personnel
compensation;
oversight
of
third-
party
service
providers;
investment
performance
reports
and
related
financial
information
for
each
Fund;
reports
on
expenses
and
shareholder
services;
legal
and
compliance
matters;
risk
controls;
pricing
and
other
services
provided
by
the
Manager
and
its
affiliates;
and
management
fees
charged
by
the
Manager
and
its
affiliates
to
US
funds
and
other
accounts,
including
management’s
explanation
of
differences
among
accounts
where
relevant.
The
Board
also
reviewed
and
considered
an
annual
report
on
payments
made
by
Franklin
Templeton
(FT)
or
the
Funds
to
financial
intermediaries,
as
well
as
a
memorandum
relating
to
third-
party
servicing
arrangements,
which
included
discussion
of
the
changing
distribution
landscape
for
the
Funds.
The
Board
acknowledged
the
ongoing
integration
of
the
Legg
Mason
family
of
funds
into
the
FT
family
of
funds
and
developing
strategies
to
address
areas
of
heightened
concern
in
the
mutual
fund
industry,
including
various
regulatory
initiatives
and
recent
geopolitical
concerns.
Franklin
Tax-Free
Trust
Shareholder
Information
158
franklintempleton.com
Annual
Report
The
Board
also
reviewed
and
considered
the
benefits
provided
to
Fund
shareholders
of
investing
in
a
fund
that
is
part
of
the
FT
family
of
funds.
The
Board
noted
the
financial
position
of
Franklin
Resources,
Inc.
(FRI),
the
Manager’s
parent,
and
its
commitment
to
the
mutual
fund
business
as
evidenced
by
its
reassessment
of
the
fund
offerings
in
response
to
the
market
environment
and
project
initiatives
and
capital
investments
relating
to
the
services
provided
to
the
Funds
by
the
FT
organization.
The
Board
specifically
noted
FT’s
commitment
to
being
a
global
leader
in
stewardship
and
sustainability
and
the
recent
addition
of
a
senior
executive
focused
on
environmental,
social
and
governance
and
climate
control
initiatives.
Following
consideration
of
such
information,
the
Board
was
satisfied
with
the
nature,
extent
and
quality
of
services
provided
by
the
Manager
and
its
affiliates
to
the
Funds
and
their
shareholders.
Fund
Performance
The
Board
reviewed
and
considered
the
performance
results
of
each
Fund
over
various
time
periods
ended
November
30,
2021.
The
Board
considered
the
performance
returns
for
each
Fund
in
comparison
to
the
performance
returns
of
mutual
funds
deemed
comparable
to
the
Fund
included
in
a
universe
(Performance
Universe)
selected
by
Broadridge
Financial
Solutions,
Inc.
(Broadridge),
an
independent
provider
of
investment
company
data.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
a
Performance
Universe.
The
Board
also
reviewed
and
considered
Fund
performance
reports
provided
and
discussions
that
occurred
with
portfolio
managers
at
Board
meetings
throughout
the
year.
A
summary
of
each
Fund’s
performance
results
is
below.
Franklin
Alabama
Tax-Free
Income
Fund
and
Franklin
Georgia
Tax-Free
Income
Fund
-
The
Performance
Universe
for
each
Fund
included
the
Fund
and
all
retail
and
institutional
“other
states”
municipal
debt
funds.
The
Board
noted
that
the
Funds’
annualized
income
returns
for
the
one-,
three-,
five-
and
10-year
periods
were
above
the
medians
of
their
respective
Performance
Universes.
The
Board
also
noted
that
the
annualized
total
returns
for
the
one-,
three-
and
10-year
periods
were
above
the
medians
of
their
respective
Performance
Universes,
but
below
the
medians
of
their
respective
Performance
Universes
for
the
five-year
period.
The
Board
considered
the
income-related
attributes
of
each
Fund
(such
as
fund
name,
investment
objective
and/or
investment
strategy)
and
that
the
evaluation
of
each
Fund’s
performance
relative
to
the
Fund’s
peers
on
an
income
return
basis
was
appropriate
given
its
income-
related
attributes
and
investor
expectations.
The
Board
concluded
that
the
Funds’
performance
was
satisfactory.
Franklin
Missouri
Tax-Free
Income
Fund
-
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
“other
states”
municipal
debt
funds.
The
Board
noted
that
the
Fund’s
annualized
income
return
for
the
one-,
three-,
five-
and
10-year
periods
was
above
the
median
of
its
Performance
Universe.
The
Board
also
noted
that
the
Fund’s
annualized
total
return
for
the
one-
and
three-
year
periods
was
above
the
median
of
its
Performance
Universe,
but
for
the
five-
and
10-year
periods
was
below
the
median
of
its
Performance
Universe.
The
Board
considered
the
income-related
attributes
of
the
Fund
(such
as
fund
name,
investment
objective
and/or
investment
strategy)
and
that
the
evaluation
of
the
Fund’s
performance
relative
to
its
peers
on
an
income
return
basis
was
appropriate
given
the
Fund’s
income-related
attributes
and
investor
expectations.
The
Board
concluded
that
the
Fund’s
performance
was
satisfactory.
Franklin
North
Carolina
Tax-Free
Income
Fund
and
Franklin
Maryland
Tax-Free
Income
Fund
-
The
Performance
Universe
for
the
Franklin
North
Carolina
Tax-Free
Income
Fund
included
the
Fund
and
all
retail
and
institutional
“other
states”
municipal
debt
funds.
The
Performance
Universe
for
the
Franklin
Maryland
Tax-Free
Income
Fund
included
the
Fund
and
all
retail
and
institutional
Maryland
municipal
debt
funds.
The
Board
noted
that
the
Funds’
annualized
income
returns
for
the
one-,
three-,
five-
and
10-year
periods
were
above
the
medians
of
their
respective
Performance
Universes.
The
Board
also
noted
that
the
annualized
total
returns
for
the
one-,
three-,
five-
and
10-year
periods
were
below
the
medians
of
their
respective
Performance
Universes.
The
Board
considered
the
income-related
attributes
of
each
Fund
(such
as
fund
name,
investment
objective
and/or
investment
strategy)
and
that
the
evaluation
of
each
Fund’s
performance
relative
to
the
Fund’s
peers
on
an
income
return
basis
was
appropriate
given
its
income-
related
attributes
and
investor
expectations.
The
Board
concluded
that
the
Funds’
performance
was
satisfactory.
Franklin
Louisiana
Tax-Free
Income
Fund
-
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
“other
states”
municipal
debt
funds.
The
Board
noted
that
the
Fund’s
annualized
income
return
and
total
return
for
the
one-,
three-,
five-
and
10-year
periods
was
above
the
medians
of
its
Performance
Universe.
The
Board
considered
the
income-related
attributes
of
the
Fund
(such
as
fund
name,
investment
objective
and/or
investment
strategy)
and
that
the
evaluation
of
the
Fund’s
performance
relative
to
its
peers
on
an
income
return
basis
was
appropriate
given
the
Fund’s
income-related
attributes
and
investor
expectations.
The
Board
concluded
that
the
Fund’s
performance
was
satisfactory.
Franklin
Tax-Free
Trust
Shareholder
Information
159
franklintempleton.com
Annual
Report
Franklin
Virginia
Tax-Free
Income
Fund
-
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
Virginia
municipal
debt
funds.
The
Board
noted
that
the
Fund’s
annualized
income
return
for
the
five-
and
10-year
periods
was
above
the
median
of
its
Performance
Universe,
but
for
the
one-
and
three-year
periods
was
below
the
median
of
its
Performance
Universe.
The
Board
also
noted
that
the
Fund’s
annualized
total
return
for
the
one-,
three-,
five-
and
10-year
periods
was
below
the
median
of
its
Performance
Universe.
The
Board
considered
the
income-related
attributes
of
the
Fund
(such
as
fund
name,
investment
objective
and/or
investment
strategy)
and
that
the
evaluation
of
the
Fund’s
performance
relative
to
its
peers
on
an
income
return
basis
was
appropriate
given
the
Fund’s
income-related
attributes
and
investor
expectations.
The
Board
discussed
the
Fund’s
underperformance
with
management
and
management
explained
that
for
the
four-year
period
ended
November
20,
2020,
the
Fund
was
underweight
duration
and
credit
risk
in
comparison
to
the
Performance
Universe.
Management
further
explained
the
steps
that
it
was
taking
to
address
the
sources
of
the
underperformance,
including
with
respect
to
the
tightening
of
duration
constraints
and
increased
alignment
of
credit
risk
with
the
Performance
Universe.
The
Board
concluded
that
the
Fund’s
Management
Agreement
should
be
continued
for
an
additional
one-year
period,
while
management’s
efforts
continue
to
be
closely
monitored.
Comparative
Fees
and
Expenses
The
Board
reviewed
and
considered
information
regarding
each
Fund’s
actual
total
expense
ratio
and
its
various
components,
including,
as
applicable,
management
fees;
transfer
agent
expenses;
underlying
fund
expenses;
Rule
12b-1
and
non-Rule
12b-1
service
fees;
and
other
non-
management
fees.
The
Board
also
noted
the
quarterly
and
annual
reports
it
receives
on
all
marketing
support
payments
made
by
FT
to
financial
intermediaries.
The
Board
considered
the
actual
total
expense
ratio
and,
separately,
the
contractual
management
fee
rate,
without
the
effect
of
fee
waivers,
if
any
(Management
Rate)
of
each
Fund
in
comparison
to
the
median
expense
ratio
and
median
Management
Rate,
respectively,
of
other
mutual
funds
deemed
comparable
to
and
with
a
similar
expense
structure
to
the
Fund
selected
by
Broadridge
(Expense
Group).
Broadridge
fee
and
expense
data
is
based
upon
information
taken
from
each
fund’s
most
recent
annual
or
semi-annual
report,
which
reflects
historical
asset
levels
that
may
be
quite
different
from
those
currently
existing,
particularly
in
a
period
of
market
volatility.
While
recognizing
such
inherent
limitation
and
the
fact
that
expense
ratios
and
Management
Rates
generally
increase
as
assets
decline
and
decrease
as
assets
grow,
the
Board
believed
the
independent
analysis
conducted
by
Broadridge
to
be
an
appropriate
measure
of
comparative
fees
and
expenses.
The
Broadridge
Management
Rate
includes
administrative
charges,
and
the
actual
total
expense
ratio,
for
comparative
consistency,
was
shown
for
Class
A1
shares
for
each
Fund
and
for
Class
A
shares
for
each
other
fund
in
the
applicable
Expense
Group.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
an
Expense
Group.
Franklin
Alabama
Tax-Free
Income
Fund,
Franklin
Georgia
Tax-Free
Income
Fund
and
Franklin
Louisiana
Tax-Free
Income
Fund
-
The
Expense
Group
for
each
Fund
included
the
Fund
and
nine
other
“other
states”
municipal
debt
funds.
The
Board
noted
that
the
Management
Rates
for
the
Funds
were
equal
to
the
medians
of
their
respective
Expense
Groups,
but
their
actual
total
expense
ratios
were
below
the
medians
of
their
respective
Expense
Groups.
The
Board
concluded
that
the
Management
Rates
charged
to
the
Funds
are
reasonable
.
Franklin
Maryland
Tax-Free
Income
Fund
and
Franklin
Virginia
Tax-Free
Income
Fund
-
The
Expense
Group
for
the
Franklin
Maryland
Tax-Free
Income
Fund
included
the
Fund,
one
other
Maryland
municipal
debt
fund,
two
Massachusetts
municipal
debt
funds,
five
New
York
municipal
debt
funds,
two
California
municipal
debt
funds,
one
Pennsylvania
municipal
debt
fund,
two
New
Jersey
municipal
debt
funds
and
two
“other
states”
municipal
debt
funds.
The
Expense
Group
for
the
Franklin
Virginia
Tax-Free
Income
Fund
included
the
Fund,
two
other
Virginia
municipal
debt
funds,
one
Massachusetts
municipal
debt
fund,
one
Minnesota
municipal
debt
fund,
four
New
York
municipal
debt
Funds,
four
California
municipal
debt
funds,
two
Pennsylvania
municipal
debt
funds,
one
New
Jersey
municipal
debt
fund,
and
one
“other
states”
municipal
debt
fund.
The
Board
noted
that
the
Management
Rates
for
the
Funds
were
slightly
above
the
medians
of
their
respective
Expense
Groups.
The
Board
also
noted
that
the
actual
total
expense
ratios
for
the
Funds
were
below
the
medians
and
in
the
first
quintile
(least
expensive)
of
their
respective
Expense
Groups.
The
Board
concluded
that
the
Management
Rates
charged
to
the
Funds
are
reasonable.
Franklin
Missouri
Tax-Free
Income
Fund
and
Franklin
North
Carolina
Tax-Free
Income
Fund
-
The
Expense
Group
for
each
of
the
Franklin
Missouri
Tax-Free
Income
Fund
and
the
Franklin
North
Carolina
Tax-Free
Income
Fund
included
the
Fund
and
nine
other
“other
states”
municipal
debt
funds.
The
Board
noted
that
the
Management
Rates
and
actual
Franklin
Tax-Free
Trust
Shareholder
Information
160
franklintempleton.com
Annual
Report
total
expense
ratios
for
the
Funds
were
below
the
medians
of
their
respective
Expense
Groups.
The
Board
concluded
that
the
Management
Rates
charged
to
the
Funds
are
reasonable.
Profitability
The
Board
reviewed
and
considered
information
regarding
the
profits
realized
by
the
Manager
and
its
affiliates
in
connection
with
the
operation
of
each
Fund.
In
this
respect,
the
Board
considered
the
Fund
profitability
analysis
provided
by
the
Manager
that
addresses
the
overall
profitability
of
FT’s
US
fund
business,
as
well
as
its
profits
in
providing
investment
management
and
other
services
to
each
of
the
individual
funds
during
the
12-month
period
ended
September
30,
2021,
being
the
most
recent
fiscal
year-
end
for
FRI.
The
Board
noted
that
although
management
continually
makes
refinements
to
its
methodologies
used
in
calculating
profitability
in
response
to
organizational
and
product-related
changes,
the
overall
methodology
has
remained
consistent
with
that
used
in
the
Funds’
profitability
report
presentations
from
prior
years.
The
Board
also
noted
that
PricewaterhouseCoopers
LLP,
auditor
to
FRI
and
certain
FT
funds,
has
been
engaged
by
the
Manager
to
periodically
review
and
assess
the
allocation
methodologies
to
be
used
solely
by
the
Fund’s
Board
with
respect
to
the
profitability
analysis.
The
Board
noted
management’s
belief
that
costs
incurred
in
establishing
the
infrastructure
necessary
for
the
type
of
mutual
fund
operations
conducted
by
the
Manager
and
its
affiliates
may
not
be
fully
reflected
in
the
expenses
allocated
to
each
Fund
in
determining
its
profitability,
as
well
as
the
fact
that
the
level
of
profits,
to
a
certain
extent,
reflected
operational
cost
savings
and
efficiencies
initiated
by
management.
As
part
of
this
evaluation,
the
Board
considered
management’s
outsourcing
of
certain
operations,
which
effort
has
required
considerable
up
front
expenditures
by
the
Manager
but,
over
the
long
run
is
expected
to
result
in
greater
efficiencies.
The
Board
also
noted
management’s
expenditures
in
improving
shareholder
services
provided
to
the
Funds,
as
well
as
the
need
to
implement
systems
and
meet
additional
regulatory
and
compliance
requirements
resulting
from
recent
US
Securities
and
Exchange
Commission
and
other
regulatory
requirements.
The
Board
also
considered
the
extent
to
which
the
Manager
and
its
affiliates
might
derive
ancillary
benefits
from
fund
operations,
including
revenues
generated
from
transfer
agent
services,
potential
benefits
resulting
from
personnel
and
systems
enhancements
necessitated
by
fund
growth,
as
well
as
increased
leverage
with
service
providers
and
counterparties.
Based
upon
its
consideration
of
all
these
factors,
the
Board
concluded
that
the
level
of
profits
realized
by
the
Manager
and
its
affiliates
from
providing
services
to
each
Fund
was
not
excessive
in
view
of
the
nature,
extent
and
quality
of
services
provided
to
each
Fund.
Economies
of
Scale
The
Board
reviewed
and
considered
the
extent
to
which
the
Manager
may
realize
economies
of
scale,
if
any,
as
each
Fund
grows
larger
and
whether
each
Fund’s
management
fee
structure
reflects
any
economies
of
scale
for
the
benefit
of
shareholders.
With
respect
to
possible
economies
of
scale,
the
Board
noted
the
existence
of
management
fee
breakpoints,
which
operate
generally
to
share
any
economies
of
scale
with
a
Fund’s
shareholders
by
reducing
the
Fund’s
effective
management
fees
as
the
Fund
grows
in
size.
The
Board
considered
the
Manager’s
view
that
any
analyses
of
potential
economies
of
scale
in
managing
a
particular
fund
are
inherently
limited
in
light
of
the
joint
and
common
costs
and
investments
the
Manager
incurs
across
the
FT
family
of
funds
as
a
whole.
The
Board
concluded
that
to
the
extent
economies
of
scale
may
be
realized
by
the
Manager
and
its
affiliates,
each
Fund’s
management
fee
structure
provided
a
sharing
of
benefits
with
the
Fund
and
its
shareholders
as
the
Fund
grows.
Conclusion
Based
on
its
review,
consideration
and
evaluation
of
all
factors
it
believed
relevant,
including
the
above-described
factors
and
conclusions,
the
Board
unanimously
approved
the
continuation
of
each
Management
Agreement
for
an
additional
one-year
period.
Proxy
Voting
Policies
and
Procedures
The
Trust’s
investment
manager
has
established
Proxy
Voting
Policies
and
Procedures
(Policies)
that
the
Trust
uses
to
determine
how
to
vote
proxies
relating
to
portfolio
securities.
Shareholders
may
view
the
Trust’s
complete
Policies
online
at
franklintempleton.com.
Alternatively,
shareholders
may
request
copies
of
the
Policies
free
of
charge
by
calling
the
Proxy
Group
collect
at
(954)
527-
7678
or
by
sending
a
written
request
to:
Franklin
Templeton
Companies,
LLC,
300
S.E.
2nd
Street,
Fort
Lauderdale,
FL
33301,
Attention:
Proxy
Group.
Copies
of
the
Trust’s
proxy
voting
records
are
also
made
available
online
at
franklintempleton.com
and
posted
on
the
U.S.
Securities
and
Exchange
Commission’s
website
at
sec.gov
and
reflect
the
most
recent
12-month
period
ended
June
30.
Franklin
Tax-Free
Trust
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Information
161
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Annual
Report
Quarterly
Statement
of
Investments
The
Trust
files
a
complete
statement
of
investments
with
the
U.S.
Securities
and
Exchange
Commission
for
the
first
and
third
quarters
for
each
fiscal
year
as
an
exhibit
to
its
report
on
Form
N-PORT.
Shareholders
may
view
the
filed
Form
N-PORT
by
visiting
the
Commission’s
website
at
sec.
gov.
The
filed
form
may
also
be
viewed
and
copied
at
the
Commission’s
Public
Reference
Room
in
Washington,
DC.
Information
regarding
the
operations
of
the
Public
Reference
Room
may
be
obtained
by
calling
(800)
SEC-0330.
Householding
of
Reports
and
Prospectuses
You
will
receive,
or
receive
notice
of
the
availability
of,
each
Fund’s
financial
reports
every
six
months.
In
addition,
you
will
receive
an
annual
updated
summary
prospectus
(detail
prospectus
available
upon
request).
To
reduce
Fund
expenses,
we
try
to
identify
related
shareholders
in
a
household
and
send
only
one
copy
of
the
financial
reports
(to
the
extent
received
by
mail)
and
summary
prospectus.
This
process,
called
“householding,”
will
continue
indefinitely
unless
you
instruct
us
otherwise.
If
you
prefer
not
to
have
these
documents
householded,
please
call
us
at
(800)
632-2301.
At
any
time
you
may
view
current
prospectuses/
summary
prospectuses
and
financial
reports
on
our
website.
If
you
choose,
you
may
receive
these
documents
through
electronic
delivery.
TF2
A
04/22
©
2022
Franklin
Templeton
Investments.
All
rights
reserved.
Authorized
for
distribution
only
when
accompanied
or
preceded
by
a
summary
prospectus
and/or
prospectus.
Investors
should
carefully
consider
a
fund’s
investment
goals,
risks,
charges
and
expenses
before
investing.
A
prospectus
contains
this
and
other
information;
please
read
it
carefully
before
investing.
To
help
ensure
we
provide
you
with
quality
service,
all
calls
to
and
from
our
service
areas
are
monitored
and/or
recorded.
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Tax-Free
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LETTER
Franklin
Tax-Free
Trust
February
28,
2022
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franklintempleton.com
Annual
Report
1
SHAREHOLDER
LETTER
Dear
Shareholder:
During
the
12
months
ended
February
28,
2022,
the
U.S.
economy
continued
to
recover
from
the
COVID-19
pandemic
amid
declining
unemployment,
growing
wages
and
business
confidence.
Growth
persisted
in
2021’s
second
half
as
the
reopening
of
businesses,
widespread
COVID-19
vaccinations
and
federal
assistance
programs
continued
to
boost
consumer
spending.
Inflation
increased
during
the
reporting
period
due
to
increased
demand
for
goods
amid
supply-chain
bottlenecks.
Investors
became
concerned
that
new,
swiftly
spreading
COVID-19
variants
could
hinder
the
economic
recovery,
and
although
growth
slowed
in
2021’s
third
quarter,
it
accelerated
in
the
fourth
quarter.
During
the
reporting
period,
the
U.S.
Federal
Reserve,
in
its
efforts
to
encourage
continued
U.S.
economic
activity,
held
the
federal
funds
rate
unchanged
at
0.25%,
and
it
continued
quantitative
easing
measures
to
bolster
credit
markets.
However,
the
Federal
Reserve
began
decreasing
its
asset
purchases
in
November,
accelerated
its
tapering
in
December,
and
indicated
in
January
that
conditions
would
soon
be
appropriate
to
raise
the
federal
funds
rate
given
employment
gains
and
persistent
high
inflation,
which
should
result
in
higher
short-term
rates.
During
the
12-month
period,
municipal
bonds,
as
measured
by
the
Bloomberg
Municipal
Bond
Index,
posted
a
-0.66%
cumulative
total
return.
1
After
benefiting
from
strong
demand
earlier
in
the
period,
by
the
end
of
2021
and
into
2022,
municipal
bond
valuations
declined
amid
increased
U.S.
Treasury
bond
volatility
influenced
by
anticipation
of
tighter
monetary
policy.
However,
municipal
bond
issuers
benefited
from
direct
fiscal
support
from
the
U.S.
government
and
from
the
reopening
of
businesses,
leading
to
increased
consumer
spending
despite
the
ongoing
uncertainty
surrounding
COVID-19.
Franklin
Tax-Free
Trust’s
annual
report
includes
more
detail
about
municipal
bond
market
conditions
and
a
discussion
from
the
portfolio
managers.
In
addition,
on
our
website,
franklintempleton.com
,
you
can
find
updated
commentary
by
our
municipal
bond
team.
Municipal
bonds
provide
tax-free
income
and
diversification
from
equities.
Despite
periods
of
volatility,
municipal
bonds
historically
have
had
a
solid
long-term
record
of
performance,
driven
mostly
by
their
compounding
tax-free
income
component.
As
you
know,
all
securities
markets
fluctuate
in
value,
as
do
mutual
fund
share
prices.
As
always,
we
recommend
investors
consult
their
financial
professionals
to
help
them
make
the
best
decisions
for
the
long
term.
In
a
constantly
changing
market
environment,
we
remain
committed
to
our
disciplined
strategy
as
we
manage
the
Funds,
keeping
in
mind
the
trust
you
have
placed
in
us.
We
appreciate
your
confidence
in
us
and
encourage
you
to
contact
us
or
your
financial
professional
when
you
have
questions
about
your
Franklin
tax-free
investment.
Sincerely,
Rupert
H.
Johnson,
Jr.
Chairman
Franklin
Tax-Free
Trust
Ben
Barber
Senior
Vice
President
Director
of
Municipal
Bonds
This
letter
reflects
our
analysis
and
opinions
as
of
February
28,
2022,
unless
otherwise
indicated.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
fund.
Statements
of
fact
are
from
sources
considered
reliable.
1.
Source:
Morningstar.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
franklintempleton.com
Annual
Report
2
Contents
Annual
Report
Municipal
Bond
Market
Overview
3
Investment
Strategy
and
Manager’s
Discussion
4
Franklin
Arizona
Tax-Free
Income
Fund
5
Franklin
Colorado
Tax-Free
Income
Fund
11
Franklin
Connecticut
Tax-Free
Income
Fund
17
Franklin
Michigan
Tax-Free
Income
Fund
23
Franklin
Minnesota
Tax-Free
Income
Fund
29
Franklin
Ohio
Tax-Free
Income
Fund
35
Franklin
Oregon
Tax-Free
Income
Fund
41
Franklin
Pennsylvania
Tax-Free
Income
Fund
47
Financial
Highlights
and
Statements
of
Investments
53
Financial
Statements
150
Notes
to
Financial
Statements
160
Report
of
Independent
Registered
Public
Accounting
Firm
177
Tax
Information
178
Board
Members
and
Officers
179
Shareholder
Information
184
Visit
franklintempleton.com
for
fund
updates,
to
access
your
account,
or
to
find
helpful
financial
planning
tools.
3
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Annual
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ANNUAL
REPORT
Municipal
Bond
Market
Overview
During
the
12
months
ending
February
28,
2022,
COVID-19
and
its
variants
continued
to
be
the
main
driver
of
market
forces.
First,
the
Delta
variant
during
the
summer
and
then,
the
Omicron
variant
toward
the
end
of
2021,
caused
COVID-19
daily
new
case
rates
to
reach
new
highs.
Although
adjusting
some
social
distancing
requirements,
health
authorities
broadly
resisted
returning
to
the
general
lockdowns
seen
at
the
beginning
of
the
pandemic,
thereby
tempering
the
overall
economic
blow
to
local
economies.
The
U.S.
Federal
Reserve
announced
its
intention
to
tighten
monetary
policy
beginning
in
2022,
which
caused
U.S.
Treasury
(UST)
yields
to
move
higher.
Strong
demand
pushed
ratios
of
30-year
municipal
bonds
(munis)
versus
UST
yields
in
June
2021
to
all-time
lows.
At
the
end
of
2021
and
into
2022,
munis
performed
poorly
after
fund
flows
turned
negative
as
investors
retreated
from
the
muni
market
amid
increased
UST
volatility.
Muni
issuer
fundamentals
remained
strong
as
they
have
benefited
from
fiscal
support
and
the
reopening
of
businesses,
leading
to
increased
consumer
spending
despite
the
ongoing
uncertainty
surrounding
COVID-19.
For
the
12-month
period,
U.S.
fixed
income
sectors
underperformed
relative
to
equities,
as
measured
by
the
Standard
&
Poor’s
®
500
Index,
which
posted
a
+16.39%
total
return
for
the
period.
1
Investment-grade
munis,
as
measured
by
the
Bloomberg
Municipal
Bond
Index,
posted
a
-0.66%
total
return.
1
In
comparison,
USTs,
as
measured
by
the
Bloomberg
U.S.
Treasury
Index,
posted
a
-2.11%
total
return,
and
investment-grade
corporate
bonds,
as
measured
by
the
Bloomberg
U.S.
Corporate
Bond
Index,
posted
a
-3.40%
total
return.
1
The
foregoing
information
reflects
our
analysis
and
opinions
as
of
February
28,
2022.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
fund.
Statements
of
fact
are
from
sources
considered
reliable.
1.
Source:
Morningstar.
Treasuries,
if
held
to
maturity,
offer
a
fixed
rate
of
return
and
a
fixed
principal
value;
their
interest
payments
and
principal
are
guaranteed.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
4
franklintempleton.com
Annual
Report
Investment
Strategy
and
Manager’s
Discussion
Investment
Strategy
We
select
securities
that
we
believe
will
provide
the
best
balance
between
risk
and
return
within
each
Fund’s
range
of
allowable
investments
and
typically
use
a
buy-and-hold
strategy.
This
means
we
generally
hold
securities
in
each
Fund’s
portfolio
for
income
purposes,
rather
than
trading
securities
for
capital
gains,
although
we
may
sell
a
security
at
any
time
if
we
believe
it
could
help
a
Fund
meet
its
goal.
Manager’s
Discussion
Due
to
the
positive
sloping
municipal
yield
curve,
we
found
value
in
higher
quality
securities
in
the
15-
to
30-year
maturity
range,
which
allowed
us
to
achieve
our
objective
of
maximizing
income
for
our
investors.
Typically,
when
interest
rates
fall,
our
turnover
declines
as
we
maintain
exposure
to
securities
that
are
producing
income
that
exceeds
their
replacement
value
in
the
market.
This
excess
income
supports
higher
distribution
rates
and
reinvestment
rates
for
those
investors
taking
advantage
of
tax-free
compounding.
Our
turnover
increases
when
rates
rise,
as
opportunities
to
purchase
securities
that
have
the
potential
to
increase
income
in
the
portfolios
become
available.
We
believe
our
consistent,
disciplined
strategy
can
help
our
investors
achieve
high,
tax-free
income
over
the
long
term.
We
invite
you
to
read
your
Fund
report
for
more
detailed
performance
and
portfolio
information.
Thank
you
for
your
participation
in
Franklin
Tax-Free
Trust.
We
look
forward
to
serving
your
future
investment
needs.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
February
28,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
5
franklintempleton.com
Annual
Report
Franklin
Arizona
Tax-Free
Income
Fund
This
annual
report
for
Franklin
Arizona
Tax-Free
Income
Fund
covers
the
fiscal
year
ended
February
28,
2022.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
investors
with
as
high
a
level
of
income
exempt
from
federal
and
Arizona
personal
income
taxes
as
is
consistent
with
prudent
investment
management
and
the
preservation
of
shareholders’
capital
by
normally
investing
at
least
80%
of
its
total
assets
in
securities
that
pay
interest
free
from
such
taxes.
1
Performance
Overview
The
Fund’s
Class
A
share
price,
as
measured
by
net
asset
value,
decreased
from
$10.92
on
February
28,
2021,
to
$10.64
on
February
28,
2022.
The
Fund’s
Class
A
shares
paid
dividends
totaling
24.7083
cents
per
share
for
the
reporting
period.
2
The
Performance
Summary
beginning
on
page
7
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
2.09%,
based
on
an
annualization
of
February’s
1.9277
cents
per
share
dividend
and
the
maximum
offering
price
of
$11.05
on
February
28,
2022.
An
investor
in
the
2022
maximum
combined
effective
federal
and
Arizona
personal
income
tax
bracket
of
43.78%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
3.72%
from
a
taxable
investment
to
match
the
Fund’s
Class
A
tax-free
distribution
rate.
For
other
performance
data,
please
see
the
Performance
Summary.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
State
Update
During
the
12-month
period,
Arizona’s
economy
continued
to
recover,
as
restrictions
related
to
COVID-19
loosened
and
effective
vaccinations
allowed
more
activity.
Arizona’s
employment
recovery
remained
uneven,
with
jobs
in
trade,
transportation
and
utilities
coming
back
faster
than
the
state’s
larger
leisure
and
hospitality
sector
and
government
sector.
The
state’s
unemployment
rate
began
the
period
at
6.0%
and
ended
at
3.6%,
compared
with
the
3.8%
national
rate.
Better-than-expected
revenue
collections
for
fiscal
year
(FY)
2021
and
significant
federal
stimulus
payments
bolstered
Arizona’s
financial
position.
The
FY
2022
budget
signed
by
the
governor
would
move
Arizona
to
a
flat
tax
rate,
but
a
November
2021
referendum
delayed
the
change
until
a
vote
later
in
2022.
Arizona’s
net
tax-supported
debt
was
$443
per
capita
and
0.9%
of
personal
income,
below
the
$1,039
and
1.9%
national
medians,
respectively.
3
Independent
credit
rating
agency
Moody’s
Investors
Service
maintained
the
state’s
Aa1
issuer
credit
rating
with
a
stable
outlook.
4
The
rating
reflected
Moody’s
view
of
Arizona’s
steady
economic
growth,
increasing
reserves,
reduced
debt
levels,
below-average
pension
liabilities
and
demonstrated
budget
discipline.
According
to
Moody’s,
challenges
included
constitutional
restrictions
that
limit
the
state’s
financial
flexibility.
The
stable
outlook
reflected
Moody’s
expectation
that
Arizona
will
continue
to
maintain
ample
reserves.
*
Does
not
include
cash
and
cash
equivalents.
Manager’s
Discussion
We
used
various
investment
strategies
during
the
12
months
under
review
as
we
sought
to
maximize
tax-free
income
for
shareholders.
Please
read
the
Investment
Strategy
and
Manager’s
Discussion
on
page
4
for
more
information.
Portfolio
Composition
2/28/22
%
of
Total
Investments*
Education
22.68%
Utilities
18.12%
Health
Care
17.04%
Transportation
11.17%
Special
Tax
9.05%
Refunded
6.75%
Housing
5.88%
Industrial
Dev.
Revenue
and
Pollution
Control
5.03%
Local
3.54%
Lease
0.74%
1.
For
state
personal
income
taxes,
the
80%
minimum
is
measured
by
total
Fund
assets.
For
investors
subject
to
alternative
minimum
tax,
a
small
portion
of
Fund
dividends
may
be
taxable.
Distributions
of
capital
gains
are
generally
taxable.
To
avoid
imposition
of
28%
backup
withholding
on
all
Fund
distributions
and
redemption
proceeds,
U.S.
investors
must
be
properly
certified
on
Form
W-9
and
non-U.S.
investors
on
Form
W-8BEN.
2.
The
distribution
amount
is
the
sum
of
all
net
investment
income
distributions
for
the
period
shown.
Assumes
shares
were
purchased
and
held
for
the
entire
accrual
period.
Since
dividends
accrue
daily,
your
actual
distributions
will
vary
depending
on
the
date
you
purchased
your
shares
and
any
account
activity.
All
Fund
distributions
will
vary
depending
upon
current
market
conditions,
and
past
distributions
are
not
indicative
of
future
trends.
3.
Source:
Moody’s
Investors
Service,
State
government
–
US:
Medians
–
State
debt
rose
2.5%
in
2020,
spurred
by
pandemic-linked
borrowing
,
6/14/21.
4.
This
does
not
indicate
Moody’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
58
.
Franklin
Arizona
Tax-Free
Income
Fund
6
franklintempleton.com
Annual
Report
Thank
you
for
your
continued
participation
in
Franklin
Arizona
Tax-Free
Income
Fund.
We
look
forward
to
serving
your
future
investment
needs.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
February
28,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Performance
Summary
as
of
February
28,
2022
Franklin
Arizona
Tax-Free
Income
Fund
7
franklintempleton.com
Annual
Report
The
performance
tables
and
graphs
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
2
/
28
/2
2
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
1-Year
-0.37%
-4.10%
5-Year
+13.76%
+1.83%
10-Year
+31.44%
+2.38%
Advisor
1-Year
-0.21%
-0.21%
5-Year
+14.69%
+2.78%
10-Year
+33.14%
+2.90%
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
A
2.09%
3.72%
1.43%
2.54%
Advisor
2.40%
4.27%
1.73%
3.08%
See
page
9
for
Performance
Summary
footnotes.
Franklin
Arizona
Tax-Free
Income
Fund
Performance
Summary
8
franklintempleton.com
Annual
Report
See
page
9
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
Total
return
represents
the
change
in
value
of
an
investment
over
the
periods
shown.
It
includes
any
applicable
maximum
sales
charge,
Fund
expenses,
account
fees
and
reinvested
distributions.
The
unmanaged
index
includes
reinvestment
of
any
income
or
distributions.
It
differs
from
the
Fund
in
composition
and
does
not
pay
management
fees
or
expenses.
One
cannot
invest
directly
in
an
index.
Class
A
(3/1/12–2/28/22)
Advisor
Class
(3/1/12–2/28/22)
Franklin
Arizona
Tax-Free
Income
Fund
Performance
Summary
9
franklintempleton.com
Annual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
Because
municipal
bonds
are
sensitive
to
interest-rate
movements,
the
Fund’s
yield
and
share
price
will
fluctuate
with
market
conditions.
Bond
prices
generally
move
in
the
opposite
direction
of
interest
rates.
Thus,
as
prices
of
bonds
in
the
Fund
adjust
to
a
rise
in
interest
rates,
the
Fund’s
share
price
may
decline.
Because
the
Fund
invests
principally
in
a
single
state,
it
is
subject
to
greater
risk
of
adverse
economic
and
regulatory
changes
in
that
state
than
a
geographically
diversified
fund.
Changes
in
the
credit
rating
of
a
bond,
or
in
the
credit
rating
or
financial
strength
of
a
bond’s
issuer,
insurer
or
guarantor,
may
affect
the
bond’s
value.
The
Fund
may
invest
a
significant
part
of
its
assets
in
municipal
securities
that
finance
similar
types
of
projects,
such
as
utilities,
hospitals,
higher
education
and
transportation.
A
change
that
affects
one
project
would
likely
affect
all
similar
projects,
thereby
increasing
market
risk.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
im-
posed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
February
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
class)
per
share
on
2/28/22.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
12/20/21
for
the
maximum
combined
effective
federal
and
Arizona
personal
income
tax
rate
of
43.78%,
based
on
the
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
Source:
Morningstar.
The
Bloomberg
Municipal
Bond
Index
is
a
market-value
weighted
index
of
tax-exempt,
investment-grade
municipal
bonds
with
maturities
of
one
year
or
more.
9.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(3/1/21–2/28/22)
Share
Class
Net
Investment
Income
A
$0.247083
A1
$0.263770
C
$0.201528
R6
$0.278741
Advisor
$0.274793
Total
Annual
Operating
Expenses
9
Share
Class
A
0.81%
Advisor
0.56%
Your
Fund’s
Expenses
Franklin
Arizona
Tax-Free
Income
Fund
10
franklintempleton.com
Annual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
181/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements,
for
Class
R6.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
9/1/21
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$968.40
$3.96
$1,020.77
$4.07
0.81%
A1
$1,000
$969.10
$3.24
$1,021.51
$3.32
0.66%
C
$1,000
$966.10
$5.87
$1,018.82
$6.03
1.20%
R6
$1,000
$969.80
$2.56
$1,022.19
$2.63
0.53%
Advisor
$1,000
$968.80
$2.74
$1,022.01
$2.82
0.56%
11
franklintempleton.com
Annual
Report
Portfolio
Composition
2/28/22
%
of
Total
Investments*
Local
21.08%
Health
Care
16.78%
Education
12.88%
Utilities
12.81%
Refunded
10.62%
Special
Tax
7.17%
Lease
5.90%
Industrial
Dev.
Revenue
and
Pollution
Control
4.01%
Housing
3.99%
Transportation
3.81%
State
General
Obligation
0.93%
Not
Available
0.02%
Franklin
Colorado
Tax-Free
Income
Fund
This
annual
report
for
Franklin
Colorado
Tax-Free
Income
Fund
covers
the
fiscal
year
ended
February
28,
2022.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
investors
with
as
high
a
level
of
income
exempt
from
federal
and
Colorado
personal
income
taxes
as
is
consistent
with
prudent
investment
management
and
the
preservation
of
shareholders’
capital
by
normally
investing
at
least
80%
of
its
total
assets
in
securities
that
pay
interest
free
from
such
taxes.
1
Performance
Overview
The
Fund’s
Class
A
share
price,
as
measured
by
net
asset
value,
decreased
from
$11.69
on
February
28,
2021,
to
$11.40
on
February
28,
2022.
The
Fund’s
Class
A
shares
paid
dividends
totaling
24.6781
cents
per
share
for
the
reporting
period.
2
The
Performance
Summary
beginning
on
page
13
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
1.94%
based
on
an
annualization
of
February’s
1.1918
cents
per
share
dividend
and
the
maximum
offering
price
of
$11.84
on
February
28,
2022.
An
investor
in
the
2022
maximum
combined
effective
federal
and
Colorado
personal
income
tax
bracket
of
45.35%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
3.55%
from
a
taxable
investment
to
match
the
Fund’s
Class
A
tax-free
distribution
rate.
For
other
performance
data,
please
see
the
Performance
Summary.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
State
Update
During
the
12-month
period,
Colorado’s
economy
has
continued
to
rebound
from
the
COVID-19
pandemic,
driven
by
its
relatively
young,
educated
workforce
and
a
diverse
mix
of
technology,
bioscience
and
professional
services
industries
located
along
the
Front
Range
region.
Colorado’s
unemployment
rate
began
the
period
at
6.2%
and
ended
at
4.0%,
compared
with
the
3.8%
national
rate.
The
state
anticipated
a
significant
shortfall
in
fiscal-year
2021
revenues
due
to
the
pandemic
and
related
economic
downturn,
and
addressed
it
with
a
combination
of
expenditure
cuts,
one-
time
transfers
and
a
drawdown
of
reserves.
Colorado’s
net
tax-supported
debt
was
$721
per
capita
and
1.1%
of
personal
income,
below
the
$1,039
and
1.9%
national
medians,
respectively.
3
Independent
credit
rating
agency
Moody’s
Investors
Service
maintained
Colorado’s
Aa1
issuer
credit
rating
with
a
stable
outlook.
4
The
rating
reflected
Moody’s
view
that
Colorado
has
an
above-average
economic
recovery,
higher-than-average
income
levels
and
relatively
low
debt
levels.
According
to
Moody’s,
challenges
facing
Colorado’s
credit
rating
include
constitutional
restrictions
and
voter
initiatives
that
limit
budgeting
flexibility
as
well
as
higher-than-average
pension
liabilities.
Moody’s
stable
outlook
reflects
Colorado’s
strong
economic
fundamentals.
*
Does
not
include
cash
and
cash
equivalents.
1.
For
state
personal
income
taxes,
the
80%
minimum
is
measured
by
total
Fund
assets.
For
investors
subject
to
alternative
minimum
tax,
a
small
portion
of
Fund
dividends
may
be
taxable.
Distributions
of
capital
gains
are
generally
taxable.
To
avoid
imposition
of
28%
backup
withholding
on
all
Fund
distributions
and
redemption
proceeds,
U.S.
investors
must
be
properly
certified
on
Form
W-9
and
non-U.S.
investors
on
Form
W-8BEN.
2.
The
distribution
amount
is
the
sum
of
all
net
investment
income
distributions
for
the
period
shown.
Assumes
shares
were
purchased
and
held
for
the
entire
accrual
period.
Since
dividends
accrue
daily,
your
actual
distributions
will
vary
depending
on
the
date
you
purchased
your
shares
and
any
account
activity.
All
Fund
distributions
will
vary
depending
upon
current
market
conditions,
and
past
distributions
are
not
indicative
of
future
trends.
3.
Source:
Moody’s
Investors
Service,
State
government
–
US:
Medians
–
State
debt
rose
2.5%
in
2020,
spurred
by
pandemic-linked
borrowing
,
6/14/21.
4.
This
does
not
reflect
Moody’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
69
.
Franklin
Colorado
Tax-Free
Income
Fund
12
franklintempleton.com
Annual
Report
Manager’s
Discussion
We
used
various
investment
strategies
during
the
12
months
under
review
as
we
sought
to
maximize
tax-free
income
for
shareholders.
Please
read
the
Investment
Strategy
and
Manager’s
Discussion
on
page
4
for
more
information.
Thank
you
for
your
continued
participation
in
Franklin
Colorado
Tax-Free
Income
Fund.
We
look
forward
to
serving
your
future
investment
needs.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
February
28,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Performance
Summary
as
of
February
28,
2022
Franklin
Colorado
Tax-Free
Income
Fund
13
franklintempleton.com
Annual
Report
The
performance
tables
and
graphs
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
2/28/22
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
1-Year
-0.43%
-4.16%
5-Year
+12.30%
+1.57%
10-Year
+29.51%
+2.23%
Advisor
1-Year
-0.10%
-0.10%
5-Year
+13.45%
+2.56%
10-Year
+31.39%
+2.77%
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
A
1.94%
3.55%
1.47%
2.69%
Advisor
2.25%
4.12%
1.78%
3.26%
See
page
15
for
Performance
Summary
footnotes.
Franklin
Colorado
Tax-Free
Income
Fund
Performance
Summary
14
franklintempleton.com
Annual
Report
See
page
15
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
Total
return
represents
the
change
in
value
of
an
investment
over
the
periods
shown.
It
includes
any
applicable
maximum
sales
charge,
Fund
expenses,
account
fees
and
reinvested
distributions.
The
unmanaged
indexes
include
reinvestment
of
any
income
or
distributions.
They
differ
from
the
Fund
in
composition
and
do
not
pay
management
fees
or
expenses.
One
cannot
invest
directly
in
an
index.
Class
A
(3/1/12–2/28/22)
Advisor
Class
(3/1/12–2/28/22)
Franklin
Colorado
Tax-Free
Income
Fund
Performance
Summary
15
franklintempleton.com
Annual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
Because
municipal
bonds
are
sensitive
to
interest-rate
movements,
the
Fund’s
yield
and
share
price
will
fluctuate
with
market
conditions.
Bond
prices
generally
move
in
the
opposite
direction
of
interest
rates.
Thus,
as
prices
of
bonds
in
the
Fund
adjust
to
a
rise
in
interest
rates,
the
Fund’s
share
price
may
decline.
Because
the
Fund
invests
principally
in
a
single
state,
it
is
subject
to
greater
risk
of
adverse
economic
and
regulatory
changes
in
that
state
than
a
geographically
diversified
fund.
Changes
in
the
credit
rating
of
a
bond,
or
in
the
credit
rating
or
financial
strength
of
a
bond’s
issuer,
insurer
or
guarantor,
may
affect
the
bond’s
value.
The
Fund
may
invest
a
significant
part
of
its
assets
in
municipal
securities
that
finance
similar
types
of
projects,
such
as
utilities,
hospitals,
higher
education
and
transportation.
A
change
that
affects
one
project
would
likely
affect
all
similar
projects,
thereby
increasing
market
risk.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
im-
posed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
February
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
class)
per
share
on
2/28/22.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
12/20/21
for
the
maximum
combined
effective
federal
and
Colorado
personal
income
tax
rate
of
45.35%,
based
on
the
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
Source:
Morningstar.
The
Bloomberg
Municipal
Bond
Index
is
a
market-value
weighted
index
of
tax-exempt,
investment-grade
municipal
bonds
with
maturities
of
one
year
or
more.
9.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(3/1/21–2/28/22)
Share
Class
Net
Investment
Income
A
$0.246781
A1
$0.264620
C
$0.198245
R6
$0.281700
Advisor
$0.276472
Total
Annual
Operating
Expenses
9
Share
Class
A
0.83%
Advisor
0.58%
Your
Fund’s
Expenses
Franklin
Colorado
Tax-Free
Income
Fund
16
franklintempleton.com
Annual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
181/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements,
for
Class
R6.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
9/1/21
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$967.90
$4.10
$1,020.63
$4.21
0.84%
A1
$1,000
$968.60
$3.37
$1,021.37
$3.46
0.69%
C
$1,000
$966.30
$6.01
$1,018.68
$6.17
1.23%
R6
$1,000
$970.20
$2.65
$1,022.11
$2.72
0.54%
Advisor
$1,000
$969.10
$2.88
$1,021.87
$2.96
0.59%
17
franklintempleton.com
Annual
Report
Franklin
Connecticut
Tax-Free
Income
Fund
This
annual
report
for
Franklin
Connecticut
Tax-Free
Income
Fund
covers
the
fiscal
year
ended
February
28,
2022
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
investors
with
as
high
a
level
of
income
exempt
from
federal
and
Connecticut
personal
income
taxes
as
is
consistent
with
prudent
investment
management
and
the
preservation
of
shareholders’
capital
by
normally
investing
at
least
80%
of
its
total
assets
in
securities
that
pay
interest
free
from
such
taxes.
1
Performance
Overview
The
Fund’s
Class
A
share
price,
as
measured
by
net
asset
value,
decreased
from
$10.17
on
February
28,
2021,
to
$9.85
on
February
28,
2022.
The
Fund’s
Class
A
shares
paid
dividends
totaling
20.1779
cents
per
share
for
the
reporting
period.
2
The
Performance
Summary
beginning
on
page
19
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
1.54%,
based
on
an
annualization
of
February’s
1.3147
cents
per
share
dividend
and
the
maximum
offering
price
of
$10.23
on
February
28,
2022.
An
investor
in
the
2022
maximum
combined
effective
federal
and
Connecticut
personal
income
tax
bracket
of
47.79%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
2.95%
from
a
taxable
investment
to
match
the
Fund’s
Class
A
tax-free
distribution
rate.
For
other
performance
data,
please
see
the
Performance
Summary.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
State
Update
During
the
12-month
period,
Connecticut’s
economy
grew
as
restrictions
related
to
COVID-19
loosened
and
the
key
finance
and
insurance
sector
posted
strong
growth.
Nonetheless,
the
nation’s
wealthiest
state
(based
on
per-
capita
income)
with
a
large
and
diverse
economy
continued
to
experience
a
deteriorating
demographic
trajectory.
The
state’s
unemployment
rate
began
the
period
at
7.2%
and
ended
at
4.9%,
compared
with
the
3.8%
national
rate.
The
state
projected
a
significant
operating
surplus
budget
in
2022
with
an
excess
available
to
fund
the
state’s
pension
plan.
Connecticut’s
net
tax-supported
debt
was
$6,971
per
capita
and
8.7%
of
personal
income,
well
above
the
$1,039
and
1.9%
national
medians,
respectively.
3
Independent
credit
rating
agency
Moody’s
Investors
Service
maintained
Connecticut’s
general
obligation
bonds’
Aa3
rating
with
a
stable
outlook.
4
This
rating
reflected
Moody’s
view
of
the
state’s
high
per-capita
income
and
wealth
levels,
as
well
as
continued
commitment
to
numerous
governance
improvements
that
resulted
in
the
accumulation
of
significant
budgetary
reserves
and
good
financial
performance
through
the
pandemic.
According
to
Moody’s,
Connecticut’s
challenges
include
a
lagging
economy
and
recent
consecutive
years
of
population
loss,
making
liabilities
more
burdensome.
The
stable
outlook
reflects
Moody’s
view
of
Connecticut’s
large
reserves
and
strong
provisions
to
promote
fiscal
discipline.
Portfolio
Composition
2/28/22
%
of
Total
Investments*
Education
35.51%
Health
Care
17.94%
Transportation
8.84%
Local
7.93%
Housing
7.84%
Special
Tax
7.01%
State
General
Obligation
5.51%
Refunded
4.94%
Utilities
4.12%
Lease
0.36%
*
Does
not
include
cash
and
cash
equivalents.
1.
For
state
personal
income
taxes,
the
80%
minimum
is
measured
by
total
Fund
assets.
For
investors
subject
to
alternative
minimum
tax,
a
small
portion
of
Fund
dividends
may
be
taxable.
Distributions
of
capital
gains
are
generally
taxable.
To
avoid
imposition
of
28%
backup
withholding
on
all
Fund
distributions
and
redemption
proceeds,
U.S.
investors
must
be
properly
certified
on
Form
W-9
and
non-U.S.
investors
on
Form
W-8BEN.
2.
The
distribution
amount
is
the
sum
of
all
net
investment
income
distributions
for
the
period
shown.
Assumes
shares
were
purchased
and
held
for
the
entire
accrual
period.
Since
dividends
accrue
daily,
your
actual
distributions
will
vary
depending
on
the
date
you
purchased
your
shares
and
any
account
activity.
All
Fund
distributions
will
vary
depending
upon
current
market
conditions,
and
past
distributions
are
not
indicative
of
future
trends.
3.
Source:
Moody’s
Investors
Service,
State
government
–
US:
Medians
–
State
debt
rose
2.5%
in
2020,
spurred
by
pandemic-linked
borrowing
,
6/14/21
.
4.
This
does
not
indicate
Moody’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
81
.
Franklin
Connecticut
Tax-Free
Income
Fund
18
franklintempleton.com
Annual
Report
Manager’s
Discussion
We
used
various
investment
strategies
during
the
12
months
under
review
as
we
sought
to
maximize
tax-free
income
for
shareholders.
Please
read
the
Investment
Strategy
and
Manager’s
Discussion
on
page
4
for
more
information.
Thank
you
for
your
continued
participation
in
Franklin
Connecticut
Tax-Free
Income
Fund.
We
look
forward
to
serving
your
future
investment
needs.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
February
28,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Performance
Summary
as
of
February
28,
2022
Franklin
Connecticut
Tax-Free
Income
Fund
19
franklintempleton.com
Annual
Report
The
performance
tables
and
graphs
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
2/28/22
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
1-Year
-1.23%
-4.93%
5-Year
+8.76%
+0.92%
10-Year
+19.39%
+1.40%
Advisor
1-Year
-0.98%
-0.98%
5-Year
+9.67%
+1.86%
10-Year
+21.05%
+1.93%
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
A
1.54%
2.
95%
0.95%
1.82%
Advisor
1.84%
3.52%
1.24%
2.38%
See
page
21
for
Performance
Summary
footnotes.
Franklin
Connecticut
Tax-Free
Income
Fund
Performance
Summary
20
franklintempleton.com
Annual
Report
See
page
21
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
Total
return
represents
the
change
in
value
of
an
investment
over
the
periods
shown.
It
includes
any
applicable
maximum
sales
charge,
Fund
expenses,
account
fees
and
reinvested
distributions.
The
unmanaged
index
includes
reinvestment
of
any
income
or
distributions.
It
differs
from
the
Fund
in
composition
and
does
not
pay
management
fees
or
expenses.
One
cannot
invest
directly
in
an
index.
Class
A
(3/1/12–2/28/22)
Advisor
Class
(3/1/12–2/28/22)
Franklin
Connecticut
Tax-Free
Income
Fund
Performance
Summary
21
franklintempleton.com
Annual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
Because
municipal
bonds
are
sensitive
to
interest-rate
movements,
the
Fund’s
yield
and
share
price
will
fluctuate
with
market
conditions.
Bond
prices
generally
move
in
the
opposite
direction
of
interest
rates.
Thus,
as
prices
of
bonds
in
the
Fund
adjust
to
a
rise
in
interest
rates,
the
Fund’s
share
price
may
decline.
Because
the
Fund
invests
principally
in
a
single
state,
it
is
subject
to
greater
risk
of
adverse
economic
and
regulatory
changes
in
that
state
than
a
geographically
diversified
fund.
Changes
in
the
credit
rating
of
a
bond,
or
in
the
credit
rating
or
financial
strength
of
a
bond’s
issuer,
insurer
or
guarantor,
may
affect
the
bond’s
value.
The
Fund
may
invest
a
significant
part
of
its
assets
in
municipal
securities
that
finance
similar
types
of
projects,
such
as
utilities,
hospitals,
higher
education
and
transportation.
A
change
that
affects
one
project
would
likely
affect
all
similar
projects,
thereby
increasing
market
risk.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
im-
posed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
February
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
class)
per
share
on
2/28/22.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
12/20/21
for
the
maximum
combined
effective
federal
and
Connecticut
personal
income
tax
rate
of
47.79%,
based
on
the
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
Source:
Morningstar.
The
Bloomberg
Municipal
Bond
Index
is
a
market-value
weighted
index
of
tax-exempt,
investment-grade
municipal
bonds
with
maturities
of
one
year
or
more.
9.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(3/1/21–2/28/22)
Share
Class
Net
Investment
Income
A
$0.201779
A1
$0.217227
C
$0.160066
R6
$0.234512
Advisor
$0.227487
Total
Annual
Operating
Expenses
9
Share
Class
A
0.94%
Advisor
0.69%
Your
Fund’s
Expenses
Franklin
Connecticut
Tax-Free
Income
Fund
22
franklintempleton.com
Annual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
181/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements,
for
Class
R6.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
9/1/21
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$967.20
$4.89
$1,019.83
$5.02
1.00%
A1
$1,000
$967.90
$4.16
$1,020.56
$4.27
0.85%
C
$1,000
$964.50
$6.80
$1,017.87
$6.99
1.40%
R6
$1,000
$968.70
$3.29
$1,021.46
$3.37
0.67%
Advisor
$1,000
$967.40
$3.68
$1,021.06
$3.78
0.75%
23
franklintempleton.com
Annual
Report
Franklin
Michigan
Tax-Free
Income
Fund
This
annual
report
for
Franklin
Michigan
Tax-Free
Income
Fund
covers
the
fiscal
year
ended
February
28,
2022
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
investors
with
as
high
a
level
of
income
exempt
from
federal
and
Michigan
personal
income
taxes
as
is
consistent
with
prudent
investment
management
and
the
preservation
of
shareholders’
capital
by
normally
investing
at
least
80%
of
its
total
assets
in
securities
that
pay
interest
free
from
such
taxes.
1
Performance
Overview
The
Fund’s
Class
A
share
price,
as
measured
by
net
asset
value,
dereased
from
$11.84
on
February
28,
2021,
to
$11.43
on
February
28,
2022.
The
Fund’s
Class
A
shares
paid
dividends
totaling
25.8548
cents
per
share
for
the
reporting
period.
2
The
Performance
Summary
beginning
on
page
25
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
2.03%,
based
on
an
annualization
of
February’s
2.0080
cents
per
share
dividend
and
the
maximum
offering
price
of
$11.88
on
February
28,
2022.
An
investor
in
the
2022
maximum
combined
effective
federal
and
Michigan
personal
income
tax
bracket
of
45.05%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
3.69%
from
a
taxable
investment
to
match
the
Fund’s
Class
A
tax-free
distribution
rate.
For
other
performance
data,
please
see
the
Performance
Summary.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
State
Update
During
the
12-month
period,
Michigan’s
economy
continued
to
recover
from
the
downturn
caused
by
the
COVID-19
pandemic
and
related
restrictions.
The
Michigan
economy
is
more
vulnerable
to
economic
cycles
because
of
its
large
automotive
industry
presence.
However,
in
recent
years,
this
exposure
has
been
mitigated
by
financial
reserves
and
a
growing
service
sector.
The
state’s
unemployment
rate
began
the
period
at
6.3%
and
ended
at
4.7%,
compared
with
the
3.8%
national
rate.
Improving
state
revenues
and
substantial
direct
aid
from
the
federal
government
bolstered
the
state's
liquidity.
Michigan’s
net
tax-supported
debt
was
$661
per
capita
and
1.2%
of
personal
income,
below
the
$1,039
and
1.9%
national
medians,
respectively.
3
Independent
credit
rating
agency
Moody’s
Investors
Service
maintained
Michigan’s
general
obligations
bonds’
Aa1
rating
with
a
stable
outlook.
4
The
rating
reflected
Moody’s
view
that
Michigan
has
proactive
financial
management
and
strong
budgetary
reserves.
According
to
Moody’s,
credit
challenges
include
dependence
upon
the
auto
manufacturing
industry,
exposure
to
local
government
debt
and
elevated
levels
of
retirement
benefit
liabilities.
The
stable
outlook
reflects
Moody’s
view
of
Michigan’s
governance
practices
that
make
the
state
likely
to
respond
rapidly
to
developing
economic
or
fiscal
downturns
and
the
fact
that
the
state’s
economy,
while
still
linked
to
the
automobile
manufacturing
industry,
has
become
increasingly
diversified.
*
Does
not
include
cash
and
cash
equivalents.
Portfolio
Composition
2/28/22
%
of
Total
Investments*
Health
Care
21.78%
Local
21.38%
Education
18.97%
Lease
7.72%
Housing
6.98%
Utilities
6.96%
Refunded
5.79%
Transportation
5.41%
Industrial
Dev.
Revenue
and
Pollution
Control
2.48%
Special
Tax
2.31%
State
General
Obligation
0.22%
1.
For
investors
subject
to
alternative
minimum
tax,
a
small
portion
of
Fund
dividends
may
be
taxable.
Distributions
of
capital
gains
are
generally
taxable.
To
avoid
imposition
of
28%
backup
withholding
on
all
Fund
distributions
and
redemption
proceeds,
U.S.
investors
must
be
properly
certified
on
Form
W-9
and
non-U.S.
investors
on
Form
W-8BEN.
2.
The
distribution
amount
is
the
sum
of
all
net
investment
income
distributions
for
the
period
shown.
Assumes
shares
were
purchased
and
held
for
the
entire
accrual
period.
Since
dividends
accrue
daily,
your
actual
distributions
will
vary
depending
on
the
date
you
purchased
your
shares
and
any
account
activity.
All
Fund
distributions
will
vary
depending
upon
current
market
conditions,
and
past
distributions
are
not
indicative
of
future
trends.
3.
Source:
Moody’s
Investors
Service,
State
government
–
US:
Medians
–
State
debt
rose
2.5%
in
2020,
spurred
by
pandemic-linked
borrowing
,
6/14/21
.
4.
This
does
not
indicate
Moody’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
90
.
Franklin
Michigan
Tax-Free
Income
Fund
24
franklintempleton.com
Annual
Report
Manager’s
Discussion
We
used
various
investment
strategies
during
the
12
months
under
review
as
we
sought
to
maximize
tax-free
income
for
shareholders.
Please
read
the
Investment
Strategy
and
Manager’s
Discussion
on
page
4
for
more
information.
Thank
you
for
your
continued
participation
in
Franklin
Michigan
Tax-Free
Income
Fund.
We
look
forward
to
serving
your
future
investment
needs.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
February
28,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Performance
Summary
as
of
February
28,
2022
Franklin
Michigan
Tax-Free
Income
Fund
25
franklintempleton.com
Annual
Report
The
performance
tables
and
graphs
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
2/28/22
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
1-Year
-1.35%
-5.05%
5-Year
+13.39%
+1.76%
10-Year
+27.96%
+2.11%
Advisor
1-Year
-1.01%
-1.01%
5-Year
+14.53%
+2.75%
10-Year
+29.75%
+2.64%
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
A
2.03%
3.69%
1.29%
2.35%
Advisor
2.33%
4.24%
1.59%
2.89%
See
page
27
for
Performance
Summary
footnotes.
Franklin
Michigan
Tax-Free
Income
Fund
Performance
Summary
26
franklintempleton.com
Annual
Report
See
page
27
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
Total
return
represents
the
change
in
value
of
an
investment
over
the
periods
shown.
It
includes
any
applicable
maximum
sales
charge,
Fund
expenses,
account
fees
and
reinvested
distributions.
The
unmanaged
index
includes
reinvestment
of
any
income
or
distributions.
It
differs
from
the
Fund
in
composition
and
does
not
pay
management
fees
or
expenses.
One
cannot
invest
directly
in
an
index.
Class
A
(3/1/12–2/28/22)
Advisor
Class
(3/1/12–2/28/22)
Franklin
Michigan
Tax-Free
Income
Fund
Performance
Summary
27
franklintempleton.com
Annual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
Because
municipal
bonds
are
sensitive
to
interest-rate
movements,
the
Fund’s
yield
and
share
price
will
fluctuate
with
market
conditions.
Bond
prices
generally
move
in
the
opposite
direction
of
interest
rates.
Thus,
as
prices
of
bonds
in
the
Fund
adjust
to
a
rise
in
interest
rates,
the
Fund’s
share
price
may
decline.
Because
the
Fund
invests
principally
in
a
single
state,
it
is
subject
to
greater
risk
of
adverse
economic
and
regulatory
changes
in
that
state
than
a
geographically
diversified
fund.
Changes
in
the
credit
rating
of
a
bond,
or
in
the
credit
rating
or
financial
strength
of
a
bond’s
issuer,
insurer
or
guarantor,
may
affect
the
bond’s
value.
The
Fund
may
invest
a
significant
part
of
its
assets
in
municipal
securities
that
finance
similar
types
of
projects,
such
as
utilities,
hospitals,
higher
education
and
transportation.
A
change
that
affects
one
project
would
likely
affect
all
similar
projects,
thereby
increasing
market
risk.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
im-
posed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
February
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
class)
per
share
on
2/28/22.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
12/20/21
for
the
maximum
combined
effective
federal
and
Michigan
personal
income
tax
rate
of
45.05%,
based
on
the
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
Source:
Morningstar.
The
Bloomberg
Municipal
Bond
Index
is
a
market-value
weighted
index
of
tax-exempt,
investment-grade
municipal
bonds
with
maturities
of
one
year
or
more.
9.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(3/1/21–2/28/22)
Share
Class
Net
Investment
Income
A
$0.258548
A1
$0.276518
C
$0.209453
R6
$0.293413
Advisor
$0.288401
Total
Annual
Operating
Expenses
9
Share
Class
A
0.82%
Advisor
0.57%
Your
Fund’s
Expenses
Franklin
Michigan
Tax-Free
Income
Fund
28
franklintempleton.com
Annual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
181/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements,
for
Class
R6.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
9/1/21
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$965.20
$4.05
$1,020.67
$4.16
0.83%
A1
$1,000
$966.70
$3.32
$1,021.42
$3.42
0.68%
C
$1,000
$963.80
$5.96
$1,018.73
$6.12
1.22%
R6
$1,000
$966.70
$2.63
$1,022.12
$2.70
0.54%
Advisor
$1,000
$967.30
$2.83
$1,021.92
$2.91
0.58%
29
franklintempleton.com
Annual
Report
Franklin
Minnesota
Tax-Free
Income
Fund
This
annual
report
for
Franklin
Minnesota
Tax-Free
Income
Fund
covers
the
fiscal
year
ended
February
28,
2022.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
investors
with
as
high
a
level
of
income
exempt
from
federal
and
Minnesota
personal
income
taxes
as
is
consistent
with
prudent
investment
management
and
the
preservation
of
shareholders’
capital
by
normally
investing
at
least
80%
of
its
total
assets
in
securities
that
pay
interest
free
from
such
taxes.
1
Performance
Overview
The
Fund’s
Class
A
share
price,
as
measured
by
net
asset
value,
decreased
from
$12.62
on
February
28,
2021,
to
$12.20
on
February
28,
2022.
The
Fund’s
Class
A
shares
paid
dividends
totaling
22.7059
cents
per
share
for
the
reporting
period.
2
The
Performance
Summary
beginning
on
page
31
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
1.69%,
based
on
an
annualization
of
February’s
1.7847
cents
per
share
dividend
and
the
maximum
offering
price
of
$12.68
on
February
28,
2022.
An
investor
in
the
2022
maximum
combined
effective
federal
and
Minnesota
personal
income
tax
bracket
of
50.65%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
3.42%
from
a
taxable
investment
to
match
the
Fund’s
Class
A
tax-free
distribution
rate.
For
other
performance
data,
please
see
the
Performance
Summary.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
State
Update
During
the
12-month
period,
Minnesota’s
economy
continued
to
recover
from
the
downturn
caused
by
the
COVID-19
pandemic
and
related
restrictions.
Historically,
the
state
has
had
a
very
low
unemployment
rate
and
high
labor
force
participation
rate
relative
to
the
rest
of
the
nation,
supported
by
a
diverse
economy.
The
state’s
unemployment
rate
began
the
period
at
3.9%
and
ended
at
2.7%,
compared
with
the
3.8%
national
rate.
Minnesota’s
strong
reserves
remained
healthy
due
to
prudent
financial
planning
and
a
revenue
surplus,
while
liabilities
such
as
debt
and
pensions
remained
manageable.
Minnesota’s
net
tax-supported
debt
was
$1,400
per
capita
and
2.3%
of
personal
income,
compared
to
the
$1,039
and
1.9%
national
medians,
respectively.
3
Independent
credit
rating
agency
Moody’s
Investors
Service
maintained
Minnesota’s
general
obligations
bonds’
Aa1
rating
with
a
positive
outlook.
4
The
rating
reflected
Moody’s
view
that
the
state
has
solid
economic
fundamentals,
including
a
diverse
economy
with
above
average
income
levels,
as
well
as
strong
reserves
and
liquidity
supported
by
solid
revenue
growth.
According
to
Moody’s,
challenges
facing
the
state
include
a
history
of
political
gridlock
that
has
led
to
budget
issues
and
government
shutdowns.
The
positive
outlook
reflects
Moody’s
view
of
the
state’s
budget
management
improvements
and
fiscal
policy
effectiveness,
including
stronger
pension
contributions
and
pension
funding
over
the
past
two
years,
two
biennial
budgets
passed
without
major
challenges
and
a
relatively
conservative
fiscal
year
2022/23
biennial
budget.
1.
For
investors
subject
to
alternative
minimum
tax,
a
small
portion
of
Fund
dividends
may
be
taxable.
Distributions
of
capital
gains
are
generally
taxable.
To
avoid
imposition
of
28%
backup
withholding
on
all
Fund
distributions
and
redemption
proceeds,
U.S.
investors
must
be
properly
certified
on
Form
W-9
and
non-U.S.
investors
on
Form
W-8BEN.
2.
The
distribution
amount
is
the
sum
of
all
net
investment
income
distributions
for
the
period
shown.
Assumes
shares
were
purchased
and
held
for
the
entire
accrual
period.
Since
dividends
accrue
daily,
your
actual
distributions
will
vary
depending
on
the
date
you
purchased
your
shares
and
any
account
activity.
All
Fund
distributions
will
vary
depending
upon
current
market
conditions,
and
past
distributions
are
not
indicative
of
future
trends.
3.
Source:
Moody’s
Investors
Service,
State
government
–
US:
Medians
–
State
debt
rose
2.5%
in
2020,
spurred
by
pandemic-linked
borrowing
,
6/14/21.
4.
This
does
not
indicate
Moody’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
103
.
Franklin
Minnesota
Tax-Free
Income
Fund
30
franklintempleton.com
Annual
Report
*Does
not
include
cash
and
cash
equivalents.
Manager’s
Discussion
We
used
various
investment
strategies
during
the
12
months
under
review
as
we
sought
to
maximize
tax-free
income
for
shareholders.
Please
read
the
Investment
Strategy
and
Manager’s
Discussion
on
page
4
for
more
information.
Thank
you
for
your
continued
participation
in
Franklin
Minnesota
Tax-Free
Income
Fund.
We
look
forward
to
serving
your
future
investment
needs.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
February
28,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Portfolio
Composition
2/28/22
%
of
Total
Investments*
Local
36.66%
Health
Care
12.55%
Education
10.55%
Housing
9.56%
Utilities
8.51%
Transportation
6.32%
State
General
Obligation
4.24%
Lease
3.67%
Other
Revenue
Bonds
3.40%
Refunded
2.43%
Special
Tax
2.11%
Performance
Summary
as
of
February
28,
2022
Franklin
Minnesota
Tax-Free
Income
Fund
31
franklintempleton.com
Annual
Report
The
performance
tables
and
graphs
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
2/28/22
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
1-Year
-1.59%
-5.28%
5-Year
+12.01%
+1.51%
10-Year
+25.89%
+1.94%
Advisor
1-Year
-1.34%
-1.34%
5-Year
+13.15%
+2.50%
10-Year
+27.70%
+2.48%
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
A
1.69%
3.42%
1.22%
2.47%
Advisor
1.98%
4.01%
1.51%
3.06%
See
page
33
for
Performance
Summary
footnotes.
Franklin
Minnesota
Tax-Free
Income
Fund
Performance
Summary
32
franklintempleton.com
Annual
Report
See
page
33
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
Total
return
represents
the
change
in
value
of
an
investment
over
the
periods
shown.
It
includes
any
applicable
maximum
sales
charge,
Fund
expenses,
account
fees
and
reinvested
distributions.
The
unmanaged
index
includes
reinvestment
of
any
income
or
distributions.
It
differs
from
the
Fund
in
composition
and
does
not
pay
management
fees
or
expenses.
One
cannot
invest
directly
in
an
index.
Class
A
(3/1/12–2/28/22)
Advisor
Class
(3/1/12–2/28/22)
Franklin
Minnesota
Tax-Free
Income
Fund
Performance
Summary
33
franklintempleton.com
Annual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
Because
municipal
bonds
are
sensitive
to
interest-rate
movements,
the
Fund’s
yield
and
share
price
will
fluctuate
with
market
conditions.
Bond
prices
generally
move
in
the
opposite
direction
of
interest
rates.
Thus,
as
prices
of
bonds
in
the
Fund
adjust
to
a
rise
in
interest
rates,
the
Fund’s
share
price
may
decline.
Because
the
Fund
invests
principally
in
a
single
state,
it
is
subject
to
greater
risk
of
adverse
economic
and
regulatory
changes
in
that
state
than
a
geographically
diversified
fund.
Changes
in
the
credit
rating
of
a
bond,
or
in
the
credit
rating
or
financial
strength
of
a
bond’s
issuer,
insurer
or
guarantor,
may
affect
the
bond’s
value.
The
Fund
may
invest
a
significant
part
of
its
assets
in
municipal
securities
that
finance
similar
types
of
projects,
such
as
utilities,
hospitals,
higher
education
and
transportation.
A
change
that
affects
one
project
would
likely
affect
all
similar
projects,
thereby
increasing
market
risk.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
im-
posed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
February
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
class)
per
share
on
2/28/22.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
12/20/21
for
the
maximum
combined
effective
federal
and
Minnesota
personal
income
tax
rate
of
50.65%,
based
on
the
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
Source:
Morningstar.
The
Bloomberg
Municipal
Bond
Index
is
a
market-value
weighted
index
of
tax-exempt,
investment-grade
municipal
bonds
with
maturities
of
one
year
or
more.
9.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(3/1/21–2/28/22)
Share
Class
Net
Investment
Income
A
$0.227059
A1
$0.246133
C
$0.174894
R6
$0.266064
Advisor
$0.258867
Total
Annual
Operating
Expenses
9
Share
Class
A
0.83%
Advisor
0.58%
Your
Fund’s
Expenses
Franklin
Minnesota
Tax-Free
Income
Fund
34
franklintempleton.com
Annual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
181/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements,
for
Class
R6.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
9/1/21
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$964.00
$4.07
$1,020.65
$4.18
0.84%
A1
$1,000
$964.70
$3.34
$1,021.40
$3.43
0.68%
C
$1,000
$961.70
$5.98
$1,018.70
$6.15
1.23%
R6
$1,000
$964.70
$2.58
$1,022.17
$2.66
0.53%
Advisor
$1,000
$965.20
$2.85
$1,021.90
$2.93
0.58%
35
franklintempleton.com
Annual
Report
Franklin
Ohio
Tax-Free
Income
Fund
This
annual
report
for
Franklin
Ohio
Tax-Free
Income
Fund
covers
the
fiscal
year
ended
February
28,
2022
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
investors
with
as
high
a
level
of
income
exempt
from
federal
and
Ohio
personal
income
taxes
as
is
consistent
with
prudent
investment
management
and
the
preservation
of
shareholders’
capital
by
normally
investing
at
least
80%
of
its
total
assets
in
securities
that
pay
interest
free
from
such
taxes.
1
Performance
Overview
The
Fund’s
Class
A
share
price,
as
measured
by
net
asset
value,
decreased
from
$12.90
on
February
28,
2021,
to
$12.54
on
February
28,
2022.
The
Fund’s
Class
A
shares
paid
dividends
totaling
25.1876
cents
per
share
for
the
reporting
period.
2
The
Performance
Summary
beginning
on
page
37
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
1.84%,
based
on
an
annualization
of
February’s
1.9968
cents
per
share
dividend
and
the
maximum
offering
price
of
$13.03
on
February
28,
2022.
An
investor
in
the
2022
maximum
combined
effective
federal
and
Ohio
personal
income
tax
bracket
of
44.79%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
3.33%
from
a
taxable
investment
to
match
the
Fund’s
Class
A
tax-free
distribution
rate.
For
other
performance
data,
please
see
the
Performance
Summary.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
State
Update
During
the
12-month
period,
Ohio’s
economy
continued
its
recovery
from
the
downturn
caused
by
the
COVID-19
pandemic
and
related
restrictions,
with
the
state’s
leisure
and
hospitality
industry
improving
significantly.
Ohio’s
unemployment
rate
began
the
period
at
5.8%
and
ended
at
4.2%,
compared
with
the
3.8%
national
rate.
Increased
revenues
from
sales
taxes
and
federal
stimulus
aid
drove
a
large
surplus
for
fiscal
year
(FY)
2021.
The
governor
signed
a
biennium
budget
for
FY
2022–2023
that
included
an
income
tax
cut
and
a
changed
funding
formula
for
schools.
Ohio’s
net
tax-supported
debt
was
$1,146
per
capita
and
2.1%
of
personal
income,
compared
to
the
$1,039
and
1.9%
national
medians,
respectively.
3
Independent
credit
rating
agency
Moody’s
Investors
Service
maintained
the
state’s
general
obligation
bonds’
Aa1
rating
with
a
stable
outlook.
4
The
rating
reflected
Moody’s
view
of
Ohio’s
strong
budget
and
financial
management,
sound
reserve
levels,
and
affordable
fixed
costs
associated
with
below-
average
long-term
debt,
pension
and
retiree
healthcare
liabilities.
According
to
Moody’s,
Ohio’s
challenges
include
below-average
economic
growth
compounded
by
weak
demographic
trends.
The
stable
outlook
reflected
Moody’s
view
that
the
state’s
proactive
financial
management,
low
fixed
costs
and
fully
funded
rainy-day
fund
will
continue
to
support
budget
flexibility.
*Does
not
include
cash
and
cash
equivalents.
Portfolio
Composition
2/28/22
%
of
Total
Investments*
Local
26.45%
Utilities
14.18%
Refunded
13.57%
Education
12.61%
Health
Care
12.01%
Transportation
5.19%
Industrial
Dev.
Revenue
and
Pollution
Control
4.65%
State
General
Obligation
4.02%
Housing
3.20%
Lease
2.55%
Special
Tax
0.79%
Other
Revenue
Bonds
0.78%
1.
For
investors
subject
to
alternative
minimum
tax,
a
small
portion
of
Fund
dividends
may
be
taxable.
Distributions
of
capital
gains
are
generally
taxable.
To
avoid
imposition
of
28%
backup
withholding
on
all
Fund
distributions
and
redemption
proceeds,
U.S.
investors
must
be
properly
certified
on
Form
W-9
and
non-U.S.
investors
on
Form
W-8BEN.
2.
The
distribution
amount
is
the
sum
of
all
net
investment
income
distributions
for
the
period
shown.
Assumes
shares
were
purchased
and
held
for
the
entire
accrual
period.
Since
dividends
accrue
daily,
your
actual
distributions
will
vary
depending
on
the
date
you
purchased
your
shares
and
any
account
activity.
All
Fund
distributions
will
vary
depending
upon
current
market
conditions,
and
past
distributions
are
not
indicative
of
future
trends.
3.
Source:
Moody’s
Investors
Service,
State
government
–
US:
Medians
–
State
debt
rose
2.5%
in
2020,
spurred
by
pandemic-linked
borrowing
,
6/14/21.
4.
This
does
not
indicate
Moody’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
116
.
Franklin
Ohio
Tax-Free
Income
Fund
36
franklintempleton.com
Annual
Report
Manager’s
Discussion
We
used
various
investment
strategies
during
the
12
months
under
review
as
we
sought
to
maximize
tax-free
income
for
shareholders.
Please
read
the
Investment
Strategy
and
Manager’s
Discussion
on
page
4
for
more
information.
Thank
you
for
your
continued
participation
in
Franklin
Ohio
Tax-Free
Income
Fund.
We
look
forward
to
serving
your
future
investment
needs.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
February
28,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Performance
Summary
as
of
February
28,
2022
Franklin
Ohio
Tax-Free
Income
Fund
37
franklintempleton.com
Annual
Report
The
performance
tables
and
graphs
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
2/28/22
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
1-Year
-0.90%
-4.62%
5-Year
+13.67%
+1.82%
10-Year
+31.52%
+2.39%
Advisor
1-Year
-0.65%
-0.65%
5-Year
+14.83%
+2.80%
10-Year
+33.51%
+2.93%
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
A
1.84%
3.33%
1.54%
2.79%
Advisor
2.14%
3.88%
1.85%
3.35%
See
page
39
for
Performance
Summary
footnotes.
Franklin
Ohio
Tax-Free
Income
Fund
Performance
Summary
38
franklintempleton.com
Annual
Report
See
page
39
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
Total
return
represents
the
change
in
value
of
an
investment
over
the
periods
shown.
It
includes
any
applicable
maximum
sales
charge,
Fund
expenses,
account
fees
and
reinvested
distributions.
The
unmanaged
index
includes
reinvestment
of
any
income
or
distributions.
It
differs
from
the
Fund
in
composition
and
does
not
pay
management
fees
or
expenses.
One
cannot
invest
directly
in
an
index.
Class
A
(3/1/12–2/28/22)
Advisor
Class
(3/1/12–2/28/22)
Franklin
Ohio
Tax-Free
Income
Fund
Performance
Summary
39
franklintempleton.com
Annual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
Because
municipal
bonds
are
sensitive
to
interest-rate
movements,
the
Fund’s
yield
and
share
price
will
fluctuate
with
market
conditions.
Bond
prices
generally
move
in
the
opposite
direction
of
interest
rates.
Thus,
as
prices
of
bonds
in
the
Fund
adjust
to
a
rise
in
interest
rates,
the
Fund’s
share
price
may
decline.
Because
the
Fund
invests
principally
in
a
single
state,
it
is
subject
to
greater
risk
of
adverse
economic
and
regulatory
changes
in
that
state
than
a
geographically
diversified
fund.
Changes
in
the
credit
rating
of
a
bond,
or
in
the
credit
rating
or
financial
strength
of
a
bond’s
issuer,
insurer
or
guarantor,
may
affect
the
bond’s
value.
The
Fund
may
invest
a
significant
part
of
its
assets
in
municipal
securities
that
finance
similar
types
of
projects,
such
as
utilities,
hospitals,
higher
education
and
transportation.
A
change
that
affects
one
project
would
likely
affect
all
similar
projects,
thereby
increasing
market
risk.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
im-
posed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
February
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
class)
per
share
on
2/28/22.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
12/20/21
for
the
maximum
combined
effective
federal
and
Ohio
personal
income
tax
rate
of
44.79%,
based
on
the
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
Source:
Morningstar.
The
Bloomberg
Municipal
Bond
Index
is
a
market-value
weighted
index
of
tax-exempt,
investment-grade
municipal
bonds
with
maturities
of
one
year
or
more.
9.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(3/1/21–2/28/22)
Share
Class
Net
Investment
Income
A
$0.251876
A1
$0.271544
C
$0.198239
R6
$0.289884
Advisor
$0.284601
Total
Annual
Operating
Expenses
9
Share
Class
A
0.80%
Advisor
0.55%
Your
Fund’s
Expenses
Franklin
Ohio
Tax-Free
Income
Fund
40
franklintempleton.com
Annual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
181/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements,
for
Class
R6.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
9/1/21
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$964.90
$3.95
$1,020.78
$4.06
0.81%
A1
$1,000
$966.40
$3.22
$1,021.52
$3.31
0.66%
C
$1,000
$963.40
$5.86
$1,018.83
$6.03
1.20%
R6
$1,000
$966.30
$2.53
$1,022.22
$2.60
0.52%
Advisor
$1,000
$966.90
$2.73
$1,022.02
$2.81
0.56%
41
franklintempleton.com
Annual
Report
Portfolio
Composition
2/28/22
%
of
Total
Investments*
Local
23.80%
Transportation
14.46%
Refunded
13.49%
Education
12.28%
Health
Care
12.22%
Housing
6.21%
State
General
Obligation
6.18%
Utilities
5.91%
Special
Tax
2.81%
Lease
1.86%
Industrial
Dev.
Revenue
and
Pollution
Control
0.50%
Other
Revenue
Bonds
0.28%
Franklin
Oregon
Tax-Free
Income
Fund
This
annual
report
for
Franklin
Oregon
Tax-Free
Income
Fund
covers
the
fiscal
year
ended
February
28,
2022
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
investors
with
as
high
a
level
of
income
exempt
from
federal
and
Oregon
personal
income
taxes
as
is
consistent
with
prudent
investment
management
and
the
preservation
of
shareholders’
capital
by
normally
investing
at
least
80%
of
its
total
assets
in
securities
that
pay
interest
free
from
such
taxes.
1
Performance
Overview
The
Fund’s
Class
A
share
price,
as
measured
by
net
asset
value,
decreased
from
$11.73
on
February
28,
2021,
to
$11.45
on
February
28,
2022.
The
Fund’s
Class
A
shares
paid
dividends
totaling
23.0141
cents
per
share
for
the
reporting
period.
2
The
Performance
Summary
beginning
on
page
43
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
1.84%,
based
on
an
annualization
of
February’s
1.8211
cents
per
share
dividend
and
the
maximum
offering
price
of
$11.90
on
February
28,
2022.
An
investor
in
the
2022
maximum
combined
effective
federal
and
Oregon
personal
income
tax
bracket
of
50.70%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
3.73%
from
a
taxable
investment
to
match
the
Fund’s
Class
A
tax-free
distribution
rate.
For
other
performance
data,
please
see
the
Performance
Summary.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
State
Update
During
the
12-month
period,
Oregon’s
economy
continued
to
recover
as
restrictions
related
to
COVID-19
loosened.
Oregon’s
economy
is
more
export-oriented
than
many
other
states,
reflecting
its
status
as
a
center
of
high-technology
manufacturing.
Oregon’s
unemployment
rate
began
the
period
at
6.2%
and
ended
at
4.0%,
compared
with
the
3.8%
national
rate.
Oregon’s
budget
is
funded
primarily
from
personal
income
taxes
(PIT),
which
are
highly
sensitive
to
economic
conditions.
As
the
state’s
economy
improved,
projections
for
PIT
and
corporate
tax
collections
were
revised
higher,
leading
to
a
large
surplus.
The
state’s
net
tax-supported
debt
was
$2,004
per
capita
and
3.5%
of
personal
income,
well
above
the
$1,039
and
1.9%
national
medians,
respectively.
3
Independent
credit
rating
agency
Moody’s
Investor
Service
maintained
Oregon’s
general
obligation
bonds’
Aa1
rating
with
a
stable
outlook.
4
The
rating
reflected
Moody’s
view
that
the
state
benefited
from
strong
liquidity
and
fund
balances,
combined
with
sophisticated
revenue
forecasting
and
sound
budget
management.
According
to
Moody’s,
challenges
included
high
reliance
on
personal
income
taxes
and
the
constitutional
2%
kicker
on
income
taxes,
which
prevents
the
state
from
fully
capturing
the
revenue
boost
during
periods
of
economic
strength.
The
stable
outlook
reflects
Moody’s
view
that
Oregon’s
sound
budget
management
and
strong
liquidity
will
support
satisfactory
financial
flexibility.
*Does
not
include
cash
and
cash
equivalents.
1.
For
state
personal
income
taxes,
the
80%
minimum
is
measured
by
total
Fund
assets.
For
investors
subject
to
alternative
minimum
tax,
a
small
portion
of
Fund
dividends
may
be
taxable.
Distributions
of
capital
gains
are
generally
taxable.
To
avoid
imposition
of
28%
backup
withholding
on
all
Fund
distributions
and
redemption
proceeds,
U.S.
investors
must
be
properly
certified
on
Form
W-9
and
non-U.S.
investors
on
Form
W-8BEN.
2.
The
distribution
amount
is
the
sum
of
all
net
investment
income
distributions
for
the
period
shown.
Assumes
shares
were
purchased
and
held
for
the
entire
accrual
period.
Since
dividends
accrue
daily,
your
actual
distributions
will
vary
depending
on
the
date
you
purchased
your
shares
and
any
account
activity.
All
Fund
distributions
will
vary
depending
upon
current
market
conditions,
and
past
distributions
are
not
indicative
of
future
trends.
3.
Source:
Moody’s
Investors
Service,
State
government
–
US:
Medians
–
State
debt
rose
2.5%
in
2020,
spurred
by
pandemic-linked
borrowing
,
6/14/21.
4.
This
does
not
indicate
Moody’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
131
.
Franklin
Oregon
Tax-Free
Income
Fund
42
franklintempleton.com
Annual
Report
Manager’s
Discussion
We
used
various
investment
strategies
during
the
12
months
under
review
as
we
sought
to
maximize
tax-free
income
for
shareholders.
Please
read
the
Investment
Strategy
and
Manager’s
Discussion
on
page
4
for
more
information.
Thank
you
for
your
continued
participation
in
Franklin
Oregon
Tax-Free
Income
Fund.
We
look
forward
to
serving
your
future
investment
needs.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
February
28,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Performance
Summary
as
of
February
28,
2022
Franklin
Oregon
Tax-Free
Income
Fund
43
franklintempleton.com
Annual
Report
The
performance
tables
and
graphs
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
2/28/22
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
1-Year
-0.48%
-4.21%
5-Year
+12.62%
+1.62%
10-Year
+25.81%
+1.93%
Advisor
1-Year
-0.15%
-0.15%
5-Year
+13.76%
+2.61%
10-Year
+27.64%
+2.47%
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
A
1.84%
3.73%
1.53%
3.10%
Advisor
2.14%
4.34%
1.83%
3.71%
See
page
45
for
Performance
Summary
footnotes.
Franklin
Oregon
Tax-Free
Income
Fund
Performance
Summary
44
franklintempleton.com
Annual
Report
See
page
45
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
Total
return
represents
the
change
in
value
of
an
investment
over
the
periods
shown.
It
includes
any
applicable
maximum
sales
charge,
Fund
expenses,
account
fees
and
reinvested
distributions.
The
unmanaged
index
includes
reinvestment
of
any
income
or
distributions.
It
differs
from
the
Fund
in
composition
and
does
not
pay
management
fees
or
expenses.
One
cannot
invest
directly
in
an
index.
Class
A
(3/1/12–2/28/22)
Advisor
Class
(3/1/12–2/28/22)
Franklin
Oregon
Tax-Free
Income
Fund
Performance
Summary
45
franklintempleton.com
Annual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
Because
municipal
bonds
are
sensitive
to
interest-rate
movements,
the
Fund’s
yield
and
share
price
will
fluctuate
with
market
conditions.
Bond
prices
generally
move
in
the
opposite
direction
of
interest
rates.
Thus,
as
prices
of
bonds
in
the
Fund
adjust
to
a
rise
in
interest
rates,
the
Fund’s
share
price
may
decline.
Because
the
Fund
invests
principally
in
a
single
state,
it
is
subject
to
greater
risk
of
adverse
economic
and
regulatory
changes
in
that
state
than
a
geographically
diversified
fund.
Changes
in
the
credit
rating
of
a
bond,
or
in
the
credit
rating
or
financial
strength
of
a
bond’s
issuer,
insurer
or
guarantor,
may
affect
the
bond’s
value.
The
Fund
may
invest
a
significant
part
of
its
assets
in
municipal
securities
that
finance
similar
types
of
projects,
such
as
utilities,
hospitals,
higher
education
and
transportation.
A
change
that
affects
one
project
would
likely
affect
all
similar
projects,
thereby
increasing
market
risk.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
im-
posed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
February
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
class)
per
share
on
2/28/22.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
12/20/21
for
the
maximum
combined
effective
federal
and
Oregon
personal
income
tax
rate
of
50.70%,
based
on
the
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
Source:
Morningstar.
The
Bloomberg
Municipal
Bond
Index
is
a
market-value
weighted
index
of
tax-exempt,
investment-grade
municipal
bonds
with
maturities
of
one
year
or
more.
9.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(3/1/21–2/28/22)
Share
Class
Net
Investment
Income
A
$0.230141
A1
$0.248054
C
$0.181187
R6
$0.263560
Advisor
$0.259926
Total
Annual
Operating
Expenses
9
Share
Class
A
0.80%
Advisor
0.55%
Your
Fund’s
Expenses
Franklin
Oregon
Tax-Free
Income
Fund
46
franklintempleton.com
Annual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
181/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements,
for
Class
R6.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
9/1/21
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$968.20
$3.89
$1,020.85
$3.99
0.80%
A1
$1,000
$968.90
$3.16
$1,021.59
$3.24
0.65%
C
$1,000
$966.80
$5.80
$1,018.90
$5.95
1.19%
R6
$1,000
$969.60
$2.53
$1,022.23
$2.60
0.52%
Advisor
$1,000
$969.50
$2.67
$1,022.09
$2.74
0.55%
47
franklintempleton.com
Annual
Report
Franklin
Pennsylvania
Tax-Free
Income
Fund
This
annual
report
for
Franklin
Pennsylvania
Tax-Free
Income
Fund
covers
the
fiscal
year
ended
February
28,
2022
.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
investors
with
as
high
a
level
of
income
exempt
from
federal
and
Pennsylvania
personal
income
taxes
as
is
consistent
with
prudent
investment
management
and
the
preservation
of
shareholders’
capital
by
normally
investing
at
least
80%
of
its
total
assets
in
securities
that
pay
interest
free
from
such
taxes.
1
Performance
Overview
The
Fund’s
Class
A
share
price,
as
measured
by
net
asset
value,
decreased
from
$9.89
on
February
28,
2021,
to
$9.64
on
February
28,
2022.
The
Fund’s
Class
A
shares
paid
dividends
totaling
20.0894
cents
per
share
for
the
reporting
period.
2
The
Performance
Summary
beginning
on
page
49
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
1.83%,
based
on
an
annualization
of
February’s
1.5282
cents
per
share
dividend
and
the
maximum
offering
price
of
$10.02
on
February
28,
2022.
An
investor
in
the
2022
maximum
combined
effective
federal
and
Pennsylvania
personal
income
tax
bracket
of
43.87%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
3.26%
from
a
taxable
investment
to
match
the
Fund’s
Class
A
tax-free
distribution
rate.
For
other
performance
data,
please
see
the
Performance
Summary.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Commonwealth
Update
During
the
12-month
period,
Pennsylvania’s
economy
continued
its
recovery
from
the
COVID-19
pandemic,
but
job
growth
trailed
many
states.
Although
the
commonwealth
has
a
very
large
and
diverse
economic
base,
its
economy
has
performed
below
average
for
the
last
decade.
The
commonwealth’s
unemployment
rate
began
the
period
at
7.3%
and
ended
at
5.1%,
compared
with
the
3.8%
national
rate.
From
a
budgetary
perspective,
Pennsylvania
continues
to
carry
a
considerable
unfunded
pension
burden.
Pennsylvania’s
net
tax-supported
debt
was
$1,448
per
capita
and
2.3%
of
personal
income,
above
the
$1,039
and
1.9%
national
medians,
respectively.
3
Independent
credit
rating
agency
Moody’s
Investors
Service
maintained
the
state’s
general
obligation
bonds’
Aa3
rating
with
a
stable
outlook.
4
The
rating
reflected
Moody’s
view
of
the
commonwealth’s
large
economic
base,
stable
and
healthy
level
of
liquidity
and
stronger-than-expected
revenue.
According
to
Moody’s,
challenges
include
relatively
high
fixed
costs
and
leverage
and
slim
budget
reserves.
The
stable
outlook
reflected
Moody’s
expectation
that
the
state’s
financial
challenges
will
remain
manageable.
*
Does
not
include
cash
and
cash
equivalents.
Manager’s
Discussion
We
used
various
investment
strategies
during
the
12
months
under
review
as
we
sought
to
maximize
tax-free
income
for
shareholders.
Please
read
the
Investment
Strategy
and
Manager’s
Discussion
on
page
4
for
more
information.
Portfolio
Composition
2/28/22
%
of
Total
Investments*
Health
Care
23.52%
Education
21.00%
Local
19.87%
Refunded
8.92%
Transportation
8.87%
Utilities
6.26%
Housing
5.29%
Lease
2.44%
Special
Tax
1.80%
State
General
Obligation
1.53%
Other
Revenue
Bonds
0.50%
1.
For
state
personal
income
taxes,
the
80%
minimum
is
measured
by
total
Fund
assets.
For
investors
subject
to
alternative
minimum
tax,
a
small
portion
of
Fund
dividends
may
be
taxable.
Distributions
of
capital
gains
are
generally
taxable.
To
avoid
imposition
of
28%
backup
withholding
on
all
Fund
distributions
and
redemption
proceeds,
U.S.
investors
must
be
properly
certified
on
Form
W-9
and
non-U.S.
investors
on
Form
W-8BEN.
2.
The
distribution
amount
is
the
sum
of
all
net
investment
income
distributions
for
the
period
shown.
Assumes
shares
were
purchased
and
held
for
the
entire
accrual
period.
Since
dividends
accrue
daily,
your
actual
distributions
will
vary
depending
on
the
date
you
purchased
your
shares
and
any
account
activity.
All
Fund
distributions
will
vary
depending
upon
current
market
conditions,
and
past
distributions
are
not
indicative
of
future
trends.
3.
Source:
Moody’s
Investors
Service,
State
government
–
US:
Medians
–
State
debt
rose
2.5%
in
2020,
spurred
by
pandemic-linked
borrowing
,
6/14/21.
4.
This
does
not
indicate
Moody’s
rating
of
the
Fund.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
143
.
Franklin
Pennsylvania
Tax-Free
Income
Fund
48
franklintempleton.com
Annual
Report
Thank
you
for
your
continued
participation
in
Franklin
Pennsylvania
Tax-Free
Income
Fund.
We
look
forward
to
serving
your
future
investment
needs.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
February
28,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Performance
Summary
as
of
February
28,
2022
Franklin
Pennsylvania
Tax-Free
Income
Fund
49
franklintempleton.com
Annual
Report
The
performance
tables
and
graphs
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
2/28/22
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
1-Year
-0.56%
-4.29%
5-Year
+10.53%
+1.25%
10-Year
+25.87%
+1.94%
Advisor
1-Year
-0.21%
-0.21%
5-Year
+11.77%
+2.25%
10-Year
+27.78%
+2.48%
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
A
1.83%
3.26%
1.49%
2.65%
Advisor
2.13%
3.79%
1.79%
3.19%
See
page
51
for
Performance
Summary
footnotes.
Franklin
Pennsylvania
Tax-Free
Income
Fund
Performance
Summary
50
franklintempleton.com
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See
page
51
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
Total
return
represents
the
change
in
value
of
an
investment
over
the
periods
shown.
It
includes
any
applicable
maximum
sales
charge,
Fund
expenses,
account
fees
and
reinvested
distributions.
The
unmanaged
index
includes
reinvestment
of
any
income
or
distributions.
It
differs
from
the
Fund
in
composition
and
does
not
pay
management
fees
or
expenses.
One
cannot
invest
directly
in
an
index.
Class
A
(3/1/12–2/28/22)
Advisor
Class
(3/1/12–2/28/22)
Franklin
Pennsylvania
Tax-Free
Income
Fund
Performance
Summary
51
franklintempleton.com
Annual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
Because
municipal
bonds
are
sensitive
to
interest-rate
movements,
the
Fund’s
yield
and
share
price
will
fluctuate
with
market
conditions.
Bond
prices
generally
move
in
the
opposite
direction
of
interest
rates.
Thus,
as
prices
of
bonds
in
the
Fund
adjust
to
a
rise
in
interest
rates,
the
Fund’s
share
price
may
decline.
Because
the
Fund
invests
principally
in
a
single
state,
it
is
subject
to
greater
risk
of
adverse
economic
and
regulatory
changes
in
that
state
than
a
geographically
diversified
fund.
Changes
in
the
credit
rating
of
a
bond,
or
in
the
credit
rating
or
financial
strength
of
a
bond’s
issuer,
insurer
or
guarantor,
may
affect
the
bond’s
value.
The
Fund
may
invest
a
significant
part
of
its
assets
in
municipal
securities
that
finance
similar
types
of
projects,
such
as
utilities,
hospitals,
higher
education
and
transportation.
A
change
that
affects
one
project
would
likely
affect
all
similar
projects,
thereby
increasing
market
risk.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
im-
posed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
February
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
class)
per
share
on
2/28/22.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
12/20/21
for
the
maximum
combined
effective
federal
and
Pennsylvania
personal
income
tax
rate
of
43.87%,
based
on
the
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
This
combined
rate
does
not
consider
the
impact
of
Pennsylvania’s
surcharge
on
taxable
income
in
excess
of
$1
million.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
Source:
Morningstar.
The
Bloomberg
Municipal
Bond
Index
is
a
market-value
weighted
index
of
tax-exempt,
investment-grade
municipal
bonds
with
maturities
of
one
year
or
more.
9.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(3/1/21–2/28/22)
Share
Class
Net
Investment
Income
A
$0.200894
A1
$0.215971
C
$0.159661
R6
$0.229913
Advisor
$0.226007
Total
Annual
Operating
Expenses
9
Share
Class
A
0.81%
Advisor
0.56%
Your
Fund’s
Expenses
Franklin
Pennsylvania
Tax-Free
Income
Fund
52
franklintempleton.com
Annual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
181/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements,
for
Class
R6.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
9/1/21
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
Ending
Account
Value
2/28/22
Expenses
Paid
During
Period
9/1/21–2/28/22
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$965.50
$3.96
$1,020.76
$4.07
0.81%
A1
$1,000
$966.30
$3.24
$1,021.50
$3.33
0.66%
C
$1,000
$964.00
$5.85
$1,018.84
$6.01
1.20%
R6
$1,000
$967.90
$2.45
$1,022.30
$2.52
0.50%
Advisor
$1,000
$967.80
$2.74
$1,022.01
$2.82
0.56%
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Arizona
Tax-Free
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
53
a
Year
Ended
February
28,
Year
Ended
February
28,
2019
b
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
................................
$10.92
$11.24
$10.58
$10.52
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.25
0.27
0.29
0.16
Net
realized
and
unrealized
gains
(losses)
........................
(0.28)
(0.32)
0.67
0.05
Total
from
investment
operations
.................................
(0.03)
(0.05)
0.96
0.21
Less
distributions
from:
Net
investment
income
.......................................
(0.25)
(0.27)
(0.30)
(0.15)
Net
asset
value,
end
of
year
....................................
$10.64
$10.92
$11.24
$10.58
Total
return
e
................................................
(0.37)%
(0.43)%
9.24%
2.09%
Ratios
to
average
net
assets
f
Expenses
g
.................................................
0.81%
0.81%
0.81%
0.81%
Net
investment
income
........................................
2.23%
2.46%
2.72%
3.12%
Supplemental
data
Net
assets,
end
of
year
(000’s)
..................................
$210,355
$173,930
$132,026
$44,516
Portfolio
turnover
rate
.........................................
17.24%
13.66%
11.37%
18.13%
a
For
the
year
ended
February
29.
b
For
the
period
September
10,
2018
(effective
date)
to
February
28,
2019.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Arizona
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
54
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.90
$11.22
$10.56
$10.58
$10.78
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.26
0.29
0.31
0.34
0.37
Net
realized
and
unrealized
gains
(losses)
...........
(0.28)
(0.32)
0.67
(0.01)
(0.19)
Total
from
investment
operations
....................
(0.02)
(0.03)
0.98
0.33
0.18
Less
distributions
from:
Net
investment
income
..........................
(0.26)
(0.29)
(0.32)
(0.35)
(0.38)
Net
asset
value,
end
of
year
.......................
$10.62
$10.90
$11.22
$10.56
$10.58
Total
return
d
...................................
(0.22)%
(0.28)%
9.42%
3.18%
1.62%
Ratios
to
average
net
assets
Expenses
.....................................
0.66%
e
0.66%
e
0.66%
e
0.66%
e
0.65%
Net
investment
income
...........................
2.39%
2.64%
2.87%
3.27%
3.39%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$526,131
$582,701
$672,061
$661,250
$737,426
Portfolio
turnover
rate
............................
17.24%
13.66%
11.37%
18.13%
17.47%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Arizona
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
55
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.09
$11.42
$10.75
$10.75
$10.95
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.20
0.23
0.26
0.29
0.31
Net
realized
and
unrealized
gains
(losses)
...........
(0.28)
(0.33)
0.67
(—)
d
(0.20)
Total
from
investment
operations
....................
(0.08)
(0.10)
0.93
0.29
0.11
Less
distributions
from:
Net
investment
income
..........................
(0.20)
(0.23)
(0.26)
(0.29)
(0.31)
Net
asset
value,
end
of
year
.......................
$10.81
$11.09
$11.42
$10.75
$10.75
Total
return
e
...................................
(0.76)%
(0.81)%
8.70%
2.74%
1.03%
Ratios
to
average
net
assets
Expenses
.....................................
1.20%
f
1.20%
f
1.21%
f
1.21%
f
1.20%
Net
investment
income
...........................
1.80%
2.05%
2.32%
2.72%
2.84%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$48,833
$67,713
$80,562
$77,216
$105,010
Portfolio
turnover
rate
............................
17.24%
13.66%
11.37%
18.13%
17.47%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Amount
rounds
to
less
than
$0.01
per
share.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Arizona
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
56
In
a
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2022
2021
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.94
$11.26
$10.60
$10.60
$10.84
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.28
0.30
0.33
0.36
0.22
Net
realized
and
unrealized
gains
(losses)
...........
(0.28)
(0.32)
0.67
(—)
e
(0.24)
Total
from
investment
operations
....................
—
(0.02)
1.00
0.36
(0.02)
Less
distributions
from:
Net
investment
income
..........................
(0.28)
(0.30)
(0.34)
(0.36)
(0.22)
Net
asset
value,
end
of
year
.......................
$10.66
$10.94
$11.26
$10.60
$10.60
Total
return
f
....................................
(0.08)%
(0.15)%
9.53%
3.48%
(0.18)%
Ratios
to
average
net
assets
g
Expenses
before
waiver
and
payments
by
affiliates
......
0.53%
0.53%
0.54%
0.55%
0.53%
Expenses
net
of
waiver
and
payments
by
affiliates
.......
0.52%
h
0.53%
h,i
0.53%
h
0.53%
h
0.51%
Net
investment
income
...........................
2.51%
2.75%
3.00%
3.40%
3.53%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$28,123
$21,450
$16,971
$12,562
$10,816
Portfolio
turnover
rate
............................
17.24%
13.66%
11.37%
18.13%
17.47%
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(
effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Amount
rounds
to
less
than
$0.01
per
share.
f
Total
return
is
not
annualized
for
periods
less
than
one
year.
g
Ratios
are
annualized
for
periods
less
than
one
year.
h
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
i
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Arizona
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
57
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.94
$11.26
$10.60
$10.61
$10.81
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.27
0.30
0.32
0.36
0.38
Net
realized
and
unrealized
gains
(losses)
...........
(0.29)
(0.32)
0.67
(0.01)
(0.19)
Total
from
investment
operations
....................
(0.02)
(0.02)
0.99
0.35
0.19
Less
distributions
from:
Net
investment
income
..........................
(0.27)
(0.30)
(0.33)
(0.36)
(0.39)
Net
asset
value,
end
of
year
.......................
$10.65
$10.94
$11.26
$10.60
$10.61
Total
return
....................................
(0.21)%
(0.18)%
9.50%
3.36%
1.72%
Ratios
to
average
net
assets
Expenses
.....................................
0.56%
d
0.56%
d
0.56%
d
0.56%
d
0.55%
Net
investment
income
...........................
2.48%
2.71%
2.97%
3.37%
3.49%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$178,256
$174,264
$124,881
$90,140
$86,795
Portfolio
turnover
rate
............................
17.24%
13.66%
11.37%
18.13%
17.47%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments,
February
28,
2022
Franklin
Arizona
Tax-Free
Income
Fund
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
58
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
97.4%
Arizona
91.6%
Arizona
Department
of
Transportation
,
State
Highway
Fund,
Revenue,
2015,
Refunding,
5%,
7/01/31
................
$
10,000,000
$
10,828,372
State
Highway
Fund,
Revenue,
2016,
Refunding,
5%,
7/01/36
................
8,680,000
9,855,845
Arizona
Health
Facilities
Authority
,
HonorHealth
Obligated
Group,
Revenue,
2014
A,
Refunding,
5%,
12/01/39
......
15,000,000
16,353,632
HonorHealth
Obligated
Group,
Revenue,
2014
A,
Refunding,
5%,
12/01/42
......
9,535,000
10,382,014
Arizona
Industrial
Development
Authority
,
Academies
of
Math
&
Science
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
7/01/42
........................................................
2,045,000
2,293,199
Academies
of
Math
&
Science
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
7/01/51
........................................................
1,080,000
1,201,289
Arizona
Agribusiness
and
Equine
Center,
Inc.,
Revenue,
2017
A,
5%,
3/01/48
....
1,555,000
1,730,537
BASIS
Schools,
Inc.
Obligated
Group,
Revenue,
2017
F,
Refunding,
5%,
7/01/47
..
3,350,000
3,772,899
Children's
National
Medical
Center
Obligated
Group,
Revenue,
2020
A,
4%,
9/01/40
865,000
977,776
Children's
National
Medical
Center
Obligated
Group,
Revenue,
2020
A,
4%,
9/01/46
2,750,000
3,057,107
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2019
A,
5%,
11/01/33
.......................................................
1,000,000
1,174,104
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2019
A,
5%,
11/01/38
.......................................................
1,630,000
1,896,746
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2019
A,
5%,
11/01/39
.......................................................
1,000,000
1,161,266
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2019
A,
5%,
11/01/44
.......................................................
6,645,000
7,656,217
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2019
A,
4%,
11/01/49
.......................................................
5,115,000
5,484,930
Great
Lakes
Senior
Living
Communities
LLC,
Revenue,
2019
A,
5%,
1/01/38
.....
1,175,000
1,097,951
Great
Lakes
Senior
Living
Communities
LLC,
Revenue,
2019
A,
5%,
1/01/54
.....
1,250,000
1,108,719
Great
Lakes
Senior
Living
Communities
LLC,
Revenue,
Second
Tier,
2019
B,
5%,
1/01/36
........................................................
1,105,000
956,086
Great
Lakes
Senior
Living
Communities
LLC,
Revenue,
Second
Tier,
2019
B,
5%,
1/01/49
........................................................
3,500,000
2,783,744
Great
Lakes
Senior
Living
Communities
LLC,
Revenue,
Second
Tier,
2019
B,
5.125%,
1/01/54
.................................................
2,000,000
1,594,378
GreatHearts
Arizona
Obligated
Group,
Revenue,
2021
B,
4%,
7/01/31
..........
315,000
348,170
GreatHearts
Arizona
Obligated
Group,
Revenue,
2021
B,
4%,
7/01/41
..........
405,000
438,347
GreatHearts
Arizona
Obligated
Group,
Revenue,
2021
B,
4%,
7/01/52
..........
840,000
895,093
Kipp
New
York,
Inc.
Gerard
Facility,
Revenue,
2021
C,
3.25%,
7/01/31
..........
1,550,000
1,528,492
Kipp
New
York,
Inc.
Macombs
Facility,
Revenue,
2021
A,
5%,
7/01/32
..........
330,000
386,275
Kipp
New
York,
Inc.
Macombs
Facility,
Revenue,
2021
A,
5%,
7/01/33
..........
315,000
368,327
Kipp
New
York,
Inc.
Macombs
Facility,
Revenue,
2021
A,
4%,
7/01/34
..........
330,000
358,407
Kipp
New
York,
Inc.
Macombs
Facility,
Revenue,
2021
A,
4%,
7/01/35
..........
365,000
395,963
Kipp
New
York,
Inc.
Macombs
Facility,
Revenue,
2021
A,
4%,
7/01/36
..........
315,000
341,084
Kipp
New
York,
Inc.
Macombs
Facility,
Revenue,
2021
A,
4%,
7/01/41
..........
2,800,000
3,006,924
Kipp
New
York,
Inc.
Macombs
Facility,
Revenue,
2021
A,
4%,
7/01/51
..........
7,000,000
7,401,111
Kipp
New
York,
Inc.
Macombs
Facility,
Revenue,
2021
A,
4%,
7/01/61
..........
15,580,000
16,357,609
Phoenix
Children's
Hospital
Obligated
Group,
Revenue,
2020
A,
4%,
2/01/50
.....
11,595,000
12,669,518
Phoenix
Children's
Hospital
Obligated
Group,
Revenue,
2021
A,
Refunding,
3%,
2/01/41
........................................................
885,000
888,602
Provident
Group-NCCU
Properties
LLC,
Revenue,
2019
A,
BAM
Insured,
5%,
6/01/49
........................................................
3,345,000
3,881,104
Provident
Group-NCCU
Properties
LLC,
Revenue,
2019
A,
BAM
Insured,
5%,
6/01/54
........................................................
3,240,000
3,745,489
Arizona
Sports
&
Tourism
Authority
,
Revenue
,
2012
A
,
Refunding
,
5
%
,
7/01/36
.....
1,550,000
1,566,990
Arizona
State
University
,
Revenue,
2014,
5%,
8/01/33
.........................................
2,200,000
2,391,502
Revenue,
2014,
5%,
8/01/34
.........................................
3,320,000
3,608,165
Revenue,
2014,
5%,
8/01/44
.........................................
4,145,000
4,492,390
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Arizona
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
59
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Arizona
(continued)
Arizona
State
University,
(continued)
Revenue,
2015
B,
Refunding,
5%,
7/01/41
...............................
$
14,070,000
$
15,666,485
Revenue,
2015
D,
5%,
7/01/41
........................................
5,000,000
5,567,336
Revenue,
2015
D,
5%,
7/01/46
........................................
5,000,000
5,551,825
Revenue,
2016
B,
5%,
7/01/42
........................................
2,000,000
2,279,006
Revenue,
2016
C,
5%,
7/01/46
........................................
10,000,000
11,341,240
Revenue,
2017
B,
Refunding,
5%,
7/01/43
...............................
4,005,000
4,663,835
Revenue,
2019
A,
5%,
7/01/43
........................................
2,100,000
2,543,204
Carefree
Utilities
Community
Facilities
District
,
Town
of
Carefree
Water
System
,
Revenue
,
2021
,
4
%
,
7/01/51
.........................................
2,000,000
2,255,048
Central
Arizona
Water
Conservation
District
,
Revenue
,
2016
,
5
%
,
1/01/34
.........
1,000,000
1,121,526
City
of
El
Mirage
,
GO
,
2012
,
AGMC
Insured
,
5
%
,
7/01/42
.....................
2,200,000
2,228,104
City
of
Goodyear
,
Water
&
Sewer,
Revenue,
Sub.
Lien,
2020,
Refunding,
AGMC
Insured,
4%,
7/01/39
600,000
684,985
Water
&
Sewer,
Revenue,
Sub.
Lien,
2020,
AGMC
Insured,
4%,
7/01/45
.........
5,000,000
5,633,639
Water
&
Sewer,
Revenue,
Sub.
Lien,
Second
Series,
2020,
AGMC
Insured,
4%,
7/01/40
........................................................
650,000
740,980
Water
&
Sewer,
Revenue,
Sub.
Lien,
Second
Series,
2020,
AGMC
Insured,
4%,
7/01/45
........................................................
7,135,000
8,039,203
City
of
Lake
Havasu
City
,
Wastewater
System,
Revenue,
2015
B,
Refunding,
AGMC
Insured,
5%,
7/01/40
...
15,000,000
16,588,530
Wastewater
System,
Revenue,
2015
B,
Refunding,
AGMC
Insured,
5%,
7/01/43
...
9,155,000
10,115,132
City
of
Mesa
,
Utility
System,
Revenue,
2018,
5%,
7/01/32
..............................
1,000,000
1,193,913
Utility
System,
Revenue,
2018,
5%,
7/01/34
..............................
1,265,000
1,503,806
Utility
System,
Revenue,
2018,
4%,
7/01/38
..............................
1,425,000
1,598,729
Utility
System,
Revenue,
2018,
4%,
7/01/39
..............................
6,135,000
6,873,023
Utility
System,
Revenue,
2018,
5%,
7/01/42
..............................
15,000,000
17,672,913
Utility
System,
Revenue,
2019
A,
5%,
7/01/43
............................
10,000,000
12,019,519
City
of
Phoenix
Civic
Improvement
Corp.
,
Airport,
Revenue,
2017
A,
5%,
7/01/42
..................................
15,090,000
17,343,266
Airport,
Revenue,
Junior
Lien,
2017
D,
Refunding,
4%,
7/01/40
...............
20,570,000
22,594,074
Airport,
Revenue,
Junior
Lien,
2019
B,
5%,
7/01/44
........................
8,500,000
9,862,122
Airport,
Revenue,
Senior
Lien,
2018,
5%,
7/01/48
..........................
5,000,000
5,733,228
Excise
Tax,
Revenue,
2015
A,
Refunding,
5%,
7/01/41
......................
10,000,000
11,055,595
Phoenix
Sky
Harbor
International
Airport
Customer
Facility
Charges,
Revenue,
2019
A,
5%,
7/01/34
..................................................
2,500,000
2,975,524
Phoenix
Sky
Harbor
International
Airport
Customer
Facility
Charges,
Revenue,
2019
A,
5%,
7/01/37
..................................................
1,500,000
1,780,913
Phoenix
Sky
Harbor
International
Airport
Customer
Facility
Charges,
Revenue,
2019
A,
5%,
7/01/38
..................................................
8,420,000
9,918,213
Phoenix
Sky
Harbor
International
Airport
Customer
Facility
Charges,
Revenue,
2019
A,
4%,
7/01/45
..................................................
2,500,000
2,719,329
State
of
Arizona
Department
of
Revenue,
Revenue,
2005
B,
NATL
Insured,
5.5%,
7/01/27
........................................................
3,945,000
4,711,664
State
of
Arizona
Department
of
Revenue,
Revenue,
2005
B,
NATL
Insured,
5.5%,
7/01/28
........................................................
2,000,000
2,440,631
State
of
Arizona
Department
of
Revenue,
Revenue,
2005
B,
NATL
Insured,
5.5%,
7/01/29
........................................................
2,000,000
2,479,704
State
of
Arizona
Department
of
Revenue,
Revenue,
2005
B,
NATL
Insured,
5.5%,
7/01/36
........................................................
5,000,000
6,828,602
State
of
Arizona
Department
of
Revenue,
Revenue,
2005
B,
NATL
Insured,
5.5%,
7/01/37
........................................................
7,000,000
9,695,703
Wastewater,
Revenue,
Junior
Lien,
2018
A,
5%,
7/01/37
.....................
1,000,000
1,199,405
Wastewater,
Revenue,
Junior
Lien,
2018
A,
4%,
7/01/39
.....................
5,000,000
5,633,214
Water
System,
Revenue,
Junior
Lien,
2014
A,
Pre-Refunded,
5%,
7/01/39
.......
10,000,000
10,874,154
Water
System,
Revenue,
Junior
Lien,
2016,
Refunding,
5%,
7/01/39
............
5,000,000
5,634,991
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Arizona
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
60
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Arizona
(continued)
County
of
Maricopa
,
Banner
Health
Obligated
Group
,
Revenue
,
2005
,
Pre-Refunded
,
5
%
,
4/01/35
......................................................
$
12,090,000
$
13,011,555
Glendale
Industrial
Development
Authority
,
Midwestern
University,
Revenue,
2007,
Refunding,
5%,
5/15/31
...............
3,455,000
3,474,653
People
of
Faith,
Inc.
Obligated
Group,
Revenue,
2020
A,
5%,
5/15/41
...........
1,500,000
1,652,858
People
of
Faith,
Inc.
Obligated
Group,
Revenue,
2020
A,
5%,
5/15/56
...........
4,000,000
4,360,906
Glendale
Municipal
Property
Corp.
,
Revenue
,
2012
C
,
Refunding
,
5
%
,
7/01/38
.....
18,530,000
19,094,283
Industrial
Development
Authority
of
the
City
of
Phoenix
(The)
,
Downtown
Phoenix
Student
Housing
II
LLC,
Revenue,
2019
A,
5%,
7/01/44
......
1,000,000
1,139,161
Downtown
Phoenix
Student
Housing
II
LLC,
Revenue,
2019
A,
5%,
7/01/49
......
1,995,000
2,262,754
Downtown
Phoenix
Student
Housing
II
LLC,
Revenue,
2019
A,
5%,
7/01/54
......
2,665,000
3,013,298
Downtown
Phoenix
Student
Housing
LLC,
Revenue,
2018
A,
Refunding,
5%,
7/01/25
1,015,000
1,122,324
Downtown
Phoenix
Student
Housing
LLC,
Revenue,
2018
A,
Refunding,
5%,
7/01/27
425,000
491,247
Downtown
Phoenix
Student
Housing
LLC,
Revenue,
2018
A,
Refunding,
5%,
7/01/30
700,000
810,285
Downtown
Phoenix
Student
Housing
LLC,
Revenue,
2018
A,
Refunding,
5%,
7/01/32
250,000
286,849
Downtown
Phoenix
Student
Housing
LLC,
Revenue,
2018
A,
Refunding,
5%,
7/01/33
600,000
687,680
Downtown
Phoenix
Student
Housing
LLC,
Revenue,
2018
A,
Refunding,
5%,
7/01/37
2,750,000
3,136,304
Downtown
Phoenix
Student
Housing
LLC,
Revenue,
2018
A,
Refunding,
5%,
7/01/42
8,550,000
9,676,346
GreatHearts
Arizona
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
7/01/36
.
4,065,000
4,396,265
GreatHearts
Arizona
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
7/01/41
.
1,225,000
1,318,900
GreatHearts
Arizona
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
7/01/46
.
1,335,000
1,431,638
JMF-Higley
2012
LLC,
Revenue,
2012,
5%,
12/01/34
.......................
1,355,000
1,390,345
JMF-Higley
2012
LLC,
Revenue,
2012,
5%,
12/01/39
.......................
5,610,000
5,749,539
Vista
College
Preparatory
Obligated
Group,
Revenue,
2018
A,
5%,
7/01/48
......
1,000,000
1,128,518
Industrial
Development
Authority
of
the
County
of
Pima
(The)
,
Christian
Care
Tucson,
Inc.,
Revenue,
2017
C,
Pre-Refunded,
5%,
12/15/47
.....
3,840,000
4,338,597
Christian
Care
Tucson,
Inc.,
Revenue,
Senior
Lien,
2017
A,
Pre-Refunded,
5%,
12/15/32
.......................................................
1,765,000
1,994,173
Christian
Care
Tucson,
Inc.,
Revenue,
Senior
Lien,
2017
A,
Pre-Refunded,
5%,
6/15/37
........................................................
2,240,000
2,530,848
TMC
HealthCare
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
4/01/46
....
13,770,000
15,377,854
TMC
HealthCare
Obligated
Group,
Revenue,
2021
A,
Refunding,
3%,
4/01/51
....
12,000,000
11,722,224
Industrial
Development
Authority
of
the
County
of
Yavapai
(The)
,
Yavapai
Community
Hospital
Association
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
8/01/34
............................................
4,250,000
4,825,829
Yavapai
Community
Hospital
Association
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
8/01/36
............................................
1,310,000
1,485,108
Yavapai
Community
Hospital
Association
Obligated
Group,
Revenue,
2019,
Refunding,
4%,
8/01/38
............................................
1,510,000
1,673,865
Yavapai
Community
Hospital
Association
Obligated
Group,
Revenue,
2019,
Refunding,
5%,
8/01/39
............................................
1,350,000
1,619,606
Yavapai
Community
Hospital
Association
Obligated
Group,
Revenue,
2019,
Refunding,
4%,
8/01/43
............................................
3,000,000
3,298,153
La
Paz
County
Industrial
Development
Authority
,
Harmony
Public
Schools,
Revenue,
2021
A,
5%,
2/15/23
....................
110,000
113,818
Harmony
Public
Schools,
Revenue,
2021
A,
5%,
2/15/25
....................
90,000
97,709
Harmony
Public
Schools,
Revenue,
2021
A,
5%,
2/15/26
....................
95,000
105,180
Harmony
Public
Schools,
Revenue,
2021
A,
5%,
2/15/27
....................
75,000
84,711
Harmony
Public
Schools,
Revenue,
2021
A,
5%,
2/15/28
....................
80,000
91,548
Harmony
Public
Schools,
Revenue,
2021
A,
5%,
2/15/29
....................
110,000
127,324
Harmony
Public
Schools,
Revenue,
2021
A,
5%,
2/15/30
....................
100,000
116,922
Harmony
Public
Schools,
Revenue,
2021
A,
4%,
2/15/41
....................
430,000
461,016
Harmony
Public
Schools,
Revenue,
2021
A,
4%,
2/15/46
....................
345,000
368,243
Harmony
Public
Schools,
Revenue,
2021
A,
4%,
2/15/51
....................
580,000
617,185
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Arizona
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
61
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Arizona
(continued)
Maricopa
County
High
School
District
No.
214
Tolleson
Union
High
School
,
GO
,
2018
A
,
5
%
,
7/01/37
....................................................
$
1,000,000
$
1,162,843
Maricopa
County
Industrial
Development
Authority
,
Banner
Health
Obligated
Group,
Revenue,
A,
4%,
1/01/41
...................
9,630,000
10,550,146
Banner
Health
Obligated
Group,
Revenue,
A,
5%,
1/01/41
...................
37,590,000
43,693,838
Christian
Care
Obligated
Group,
Revenue,
2016
A,
Pre-Refunded,
5%,
1/01/36
...
3,860,000
4,313,252
Christian
Care
Obligated
Group,
Revenue,
2016
C,
Pre-Refunded,
5%,
1/01/40
...
9,740,000
10,883,698
Creighton
University,
Revenue,
2020,
5%,
7/01/47
.........................
13,000,000
15,330,221
Creighton
University,
Revenue,
2020,
4%,
7/01/50
.........................
1,695,000
1,843,079
GreatHearts
Arizona
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
7/01/37
.
1,000,000
1,132,147
GreatHearts
Arizona
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
7/01/52
.
1,000,000
1,114,933
Highland
Prep
Obligated
Group,
Revenue,
2019,
5%,
1/01/37
................
1,000,000
1,192,640
Highland
Prep
Obligated
Group,
Revenue,
2019,
5%,
1/01/50
................
1,715,000
1,996,701
HonorHealth
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
9/01/37
.......
4,025,000
4,803,953
HonorHealth
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
9/01/42
.......
4,000,000
4,743,868
HonorHealth
Obligated
Group,
Revenue,
2021
A,
3%,
9/01/51
................
1,600,000
1,559,644
HonorHealth
Obligated
Group,
Revenue,
2021
A,
4%,
9/01/51
................
1,000,000
1,111,532
Legacy
Traditional
School
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
7/01/49
........................................................
3,920,000
4,534,995
Reid
Traditional
Schools
Obligated
Group,
Revenue,
2016,
5%,
7/01/36
.........
1,120,000
1,233,887
Reid
Traditional
Schools
Obligated
Group,
Revenue,
2016,
5%,
7/01/47
.........
3,325,000
3,622,943
Maricopa
County
Pollution
Control
Corp.
,
El
Paso
Electric
Co.,
Revenue,
2009
B,
Refunding,
3.6%,
4/01/40
.............
13,500,000
14,283,614
El
Paso
Electric
Co.,
Revenue,
2012
A,
Refunding,
4.5%,
8/01/42
.............
10,000,000
10,092,334
a
Public
Service
Co.
of
New
Mexico,
Revenue,
2003
A,
Refunding,
Mandatory
Put,
1.05%,
6/01/22
..................................................
4,250,000
4,250,408
a
Public
Service
Co.
of
New
Mexico,
Revenue,
2010
A,
Refunding,
Mandatory
Put,
0.875%,
10/01/26
................................................
6,650,000
6,320,522
Southern
California
Edison
Co.,
Revenue,
2000
A,
Refunding,
2.4%,
6/01/35
.....
10,000,000
9,408,973
Maricopa
County
School
District
No.
83-Cartwright
Elementary
,
GO
,
2011
A
,
AGMC
Insured
,
5.375
%
,
7/01/30
............................................
5,415,000
5,500,353
Maricopa
County
Unified
School
District
No.
11-Peoria
,
GO,
2013,
5%,
7/01/31
.............................................
5,100,000
5,354,890
GO,
2018,
BAM
Insured,
5%,
7/01/33
...................................
1,000,000
1,163,396
Maricopa
County
Unified
School
District
No.
95
Queen
Creek
,
GO,
2018,
5%,
7/01/33
.............................................
500,000
562,398
GO,
2018,
5%,
7/01/37
.............................................
1,200,000
1,341,418
McAllister
Academic
Village
LLC
,
Arizona
State
University,
Revenue,
2016
A,
Refunding,
5%,
7/01/33
............
2,000,000
2,278,108
Arizona
State
University,
Revenue,
2016
A,
Refunding,
5%,
7/01/38
............
2,000,000
2,277,209
Arizona
State
University,
Revenue,
2016
A,
Refunding,
5%,
7/01/39
............
1,000,000
1,137,707
Mohave
County
Union
High
School
District
No.
2
Colorado
River
,
GO
,
2017
,
5
%
,
7/01/35
.........................................................
1,000,000
1,153,489
Northern
Arizona
University
,
Revenue,
2013,
5%,
8/01/26
.........................................
2,380,000
2,487,412
Revenue,
2014,
Pre-Refunded,
5%,
6/01/40
..............................
2,820,000
3,051,796
Revenue,
2014,
5%,
6/01/40
.........................................
4,545,000
4,863,058
Revenue,
2014,
Pre-Refunded,
5%,
6/01/44
..............................
8,005,000
8,672,289
Revenue,
2020
B,
Refunding,
BAM
Insured,
5%,
6/01/38
....................
4,000,000
4,889,825
Revenue,
2020
B,
Refunding,
BAM
Insured,
5%,
6/01/39
....................
1,355,000
1,655,789
Pima
County
Unified
School
District
No.
20
Vail
,
GO
,
2016
,
Refunding
,
BAM
Insured
,
5
%
,
7/01/36
......................................................
3,305,000
3,733,540
Pima
County
Unified
School
District
No.
30
Sahuarita
,
GO,
2017,
BAM
Insured,
5%,
7/01/33
...................................
2,665,000
3,081,355
GO,
2017,
BAM
Insured,
5%,
7/01/34
...................................
2,800,000
3,232,836
Pima
County
Unified
School
District
No.
6
Marana
,
GO,
2017
C,
BAM
Insured,
5%,
7/01/36
.................................
2,385,000
2,761,543
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Arizona
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
62
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Arizona
(continued)
Pima
County
Unified
School
District
No.
6
Marana,
(continued)
GO,
2018
D,
AGMC
Insured,
5%,
7/01/38
................................
$
2,500,000
$
2,889,204
Pinal
County
Community
College
District
,
Revenue
,
2017
,
BAM
Insured
,
5
%
,
7/01/34
1,065,000
1,199,308
Pinal
County
Electric
District
No.
3
,
Revenue
,
2016
,
Refunding
,
5
%
,
7/01/35
.......
1,195,000
1,344,644
Salt
River
Project
Agricultural
Improvement
&
Power
District
,
Revenue,
2012
A,
Refunding,
5%,
12/01/30
..............................
4,500,000
4,547,107
Revenue,
2016
A,
Refunding,
5%,
1/01/38
...............................
9,745,000
11,261,038
Revenue,
2017
A,
Refunding,
5%,
1/01/37
...............................
10,000,000
11,844,053
Revenue,
2017
A,
Refunding,
5%,
1/01/38
...............................
3,310,000
3,915,105
Revenue,
2017
A,
Refunding,
5%,
1/01/39
...............................
5,605,000
6,620,930
Revenue,
2019
A,
5%,
1/01/47
........................................
5,000,000
6,034,575
Salt
Verde
Financial
Corp.
,
Revenue,
2007-1,
5%,
12/01/32
.......................................
10,000,000
12,220,220
Revenue,
2007-1,
5%,
12/01/37
.......................................
5,000,000
6,372,610
Student
&
Academic
Services
LLC
,
Revenue,
2014,
BAM
Insured,
5%,
6/01/33
..............................
1,000,000
1,071,583
Revenue,
2014,
BAM
Insured,
5%,
6/01/39
..............................
1,400,000
1,493,494
Revenue,
2014,
BAM
Insured,
5%,
6/01/44
..............................
3,155,000
3,354,209
Town
of
Gilbert
,
Revenue,
Sub.
Lien
,
2015
,
5
%
,
7/01/45
......................
10,000,000
11,038,494
Town
of
Queen
Creek
,
Excise
Tax,
Revenue,
2018
A,
5%,
8/01/42
...............................
2,500,000
2,967,565
Excise
Tax,
Revenue,
2018
A,
5%,
8/01/47
...............................
5,000,000
5,892,686
Excise
Tax,
Revenue,
2020,
4%,
8/01/50
................................
8,740,000
9,798,289
University
Medical
Center
Corp.
,
Banner-University
Medical
Center
Tucson
Campus
LLC
,
Revenue
,
2013
,
Pre-Refunded
,
5.625
%
,
7/01/36
......................
5,000,000
5,300,615
University
of
Arizona
(The)
,
Revenue,
2013,
5%,
8/01/38
.........................................
5,790,000
6,067,780
Revenue,
2016,
Refunding,
5%,
6/01/39
.................................
2,750,000
3,125,858
Revenue,
2018
A,
5%,
6/01/43
........................................
5,000,000
5,895,426
Revenue,
2019
A,
5%,
6/01/42
........................................
2,000,000
2,410,382
Revenue,
2020
A,
Refunding,
4%,
8/01/44
...............................
11,245,000
12,722,022
908,250,086
Florida
0.1%
b
Capital
Trust
Agency,
Inc.
,
SHI
-
Lake
Osborne
LLC
,
Revenue
,
144A,
2021
A-1
,
3.68
%
,
1/01/57
.........................................................
800,000
716,134
Georgia
0.3%
b
Development
Authority
of
Rockdale
County
,
AHPC
Terraces
at
Fieldstone
LLC
,
Revenue
,
144A,
2021
A-1
,
3.5
%
,
12/01/36
...............................
3,290,000
3,073,014
South
Carolina
0.3%
South
Carolina
Jobs-Economic
Development
Authority
,
b
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
1,900,000
1,777,926
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
1,900,000
1,775,942
3,553,868
Texas
0.6%
b
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
2,600,000
2,411,976
b
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
A-2
,
5
%
,
12/01/52
............
3,300,000
3,310,642
5,722,618
Washington
0.2%
b
Washington
State
Housing
Finance
Commission
,
Madison
at
Rivers
Edge
Apartments
LLC
,
Revenue
,
144A,
2021
A
,
3.65
%
,
1/01/37
............................
1,900,000
1,777,439
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Arizona
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
63
See
Abbreviations
on
page
176
.
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Wisconsin
1.2%
b
Public
Finance
Authority
,
Revenue,
144A,
2022,
B-1,
4%,
12/28/44
................................
$
1,900,000
$
1,830,677
Affordable
Housing
Preservation
Corp.
(The),
Revenue,
144A,
2021,
5.25%,
12/01/22
.......................................................
6,800,000
6,768,715
AL-FL
Portfolio
Obligated
Group,
Revenue,
144A,
2021
A,
3.4%,
12/01/36
.......
3,300,000
3,077,387
11,676,779
U.S.
Territories
3.1%
Guam
1.3%
Guam
Power
Authority
,
Revenue,
2014
A,
AGMC
Insured,
5%,
10/01/39
...........................
6,490,000
6,990,962
Revenue,
2014
A,
AGMC
Insured,
5%,
10/01/44
...........................
5,325,000
5,718,396
12,709,358
Puerto
Rico
1.8%
Puerto
Rico
Electric
Power
Authority
,
Revenue
,
VV
,
Refunding
,
NATL
Insured
,
5.25
%
,
7/01/32
.........................................................
3,700,000
3,918,235
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue,
2007
N,
Refunding,
AGMC
Insured,
5.25%,
7/01/36
................
750,000
783,660
Revenue,
2007
N,
Refunding,
AGMC
Insured,
5.5%,
7/01/29
.................
770,000
821,646
Revenue,
CC,
Refunding,
AGMC
Insured,
5.25%,
7/01/32
...................
1,970,000
2,063,949
Revenue,
CC,
Refunding,
AGMC
Insured,
5.5%,
7/01/31
....................
2,790,000
2,975,246
Revenue,
L,
Refunding,
NATL
Insured,
5.25%,
7/01/35
......................
5,050,000
5,342,624
Revenue,
L,
Refunding,
AGMC
Insured,
5.25%,
7/01/41
.....................
2,290,000
2,382,264
18,287,624
Total
U.S.
Territories
....................................................................
30,996,982
Total
Municipal
Bonds
(Cost
$929,275,438)
.....................................
965,766,920
a
a
a
a
Short
Term
Investments
0.4%
Municipal
Bonds
0.4%
Arizona
0.4%
c
Arizona
Industrial
Development
Authority
,
Phoenix
Children's
Hospital
,
Revenue
,
2019
A
,
Refunding
,
LOC
JPMorgan
Chase
Bank
NA
,
Daily
VRDN
and
Put
,
0.06
%
,
2/01/48
3,900,000
3,900,000
Total
Municipal
Bonds
(Cost
$3,900,000)
.......................................
3,900,000
Total
Short
Term
Investments
(Cost
$3,900,000
)
.................................
3,900,000
a
Total
Investments
(Cost
$933,175,438)
97.8%
...................................
$969,666,920
Other
Assets,
less
Liabilities
2.2%
.............................................
22,031,173
Net
Assets
100.0%
...........................................................
$991,698,093
a
The
maturity
date
shown
represents
the
mandatory
put
date.
b
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
February
28,
2022,
the
aggregate
value
of
these
securities
was
$24,743,910,
representing
2.5%
of
net
assets.
c
Variable
rate
demand
notes
(VRDNs)
are
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.
Unless
otherwise
noted,
the
coupon
rate
is
determined
based
on
factors
including
supply
and
demand,
underlying
credit,
tax
treatment,
and
current
short
term
rates.
The
coupon
rate
shown
represents
the
rate
at
period
end.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Colorado
Tax-Free
Income
Fund
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
64
a
Year
Ended
February
28,
Year
Ended
February
28,
2019
b
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
................................
$11.69
$11.96
$11.32
$11.28
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.25
0.28
0.31
0.17
Net
realized
and
unrealized
gains
(losses)
........................
(0.29)
(0.27)
0.66
0.04
Total
from
investment
operations
.................................
(0.04)
0.01
0.97
0.21
Less
distributions
from:
Net
investment
income
.......................................
(0.25)
(0.28)
(0.33)
(0.17)
Net
asset
value,
end
of
year
....................................
$11.40
$11.69
$11.96
$11.32
Total
return
e
................................................
(0.43)%
0.07%
8.69%
1.89%
Ratios
to
average
net
assets
f
Expenses
g
.................................................
0.83%
0.83%
0.84%
0.84%
Net
investment
income
........................................
2.08%
2.40%
2.72%
3.14%
Supplemental
data
Net
assets,
end
of
year
(000’s)
..................................
$142,935
$119,598
$87,684
$35,153
Portfolio
turnover
rate
.........................................
14.21%
19.32%
15.00%
10.85%
a
For
the
year
ended
February
29.
b
For
the
period
September
10,
2018
(effective
date)
to
February
28,
2019.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Colorado
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
65
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.68
$11.96
$11.31
$11.32
$11.66
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.26
0.30
0.33
0.37
0.37
Net
realized
and
unrealized
gains
(losses)
...........
(0.28)
(0.29)
0.67
(0.01)
(0.32)
Total
from
investment
operations
....................
(0.02)
0.01
1.00
0.36
0.05
Less
distributions
from:
Net
investment
income
..........................
(0.26)
(0.29)
(0.35)
(0.37)
(0.39)
Net
asset
value,
end
of
year
.......................
$11.40
$11.68
$11.96
$11.31
$11.32
Total
return
d
...................................
(0.19)%
0.13%
8.95%
3.28%
0.38%
Ratios
to
average
net
assets
Expenses
.....................................
0.68%
e
0.68%
e
0.69%
e
0.69%
e
0.68%
f
Net
investment
income
...........................
2.24%
2.57%
2.87%
3.29%
3.23%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$386,962
$422,411
$477,155
$462,925
$521,249
Portfolio
turnover
rate
............................
14.21%
19.32%
15.00%
10.85%
16.78%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Colorado
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
66
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.83
$12.11
$11.45
$11.46
$11.79
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.20
0.24
0.27
0.31
0.32
Net
realized
and
unrealized
gains
(losses)
...........
(0.29)
(0.29)
0.68
(0.01)
(0.33)
Total
from
investment
operations
....................
(0.09)
(0.05)
0.95
0.30
(0.01)
Less
distributions
from:
Net
investment
income
..........................
(0.20)
(0.23)
(0.29)
(0.31)
(0.32)
Net
asset
value,
end
of
year
.......................
$11.54
$11.83
$12.11
$11.45
$11.46
Total
return
d
...................................
(0.83)%
(0.41)%
8.36%
2.67%
(0.10)%
Ratios
to
average
net
assets
Expenses
.....................................
1.23%
e
1.22%
e
1.24%
e
1.24%
e
1.23%
f
Net
investment
income
...........................
1.66%
2.01%
2.32%
2.74%
2.68%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$36,062
$50,968
$66,329
$69,045
$99,811
Portfolio
turnover
rate
............................
14.21%
19.32%
15.00%
10.85%
16.78%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Colorado
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
67
a
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2022
2021
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.69
$11.97
$11.32
$11.33
$11.64
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.28
0.32
0.35
0.39
0.23
Net
realized
and
unrealized
gains
(losses)
...........
(0.28)
(0.29)
0.66
(0.01)
(0.32)
Total
from
investment
operations
....................
—
0.03
1.01
0.38
(0.09)
Less
distributions
from:
Net
investment
income
..........................
(0.28)
(0.31)
(0.36)
(0.39)
(0.22)
Net
asset
value,
end
of
year
.......................
$11.41
$11.69
$11.97
$11.32
$11.33
Total
return
e
...................................
(0.05)%
0.27%
9.09%
3.40%
(0.79)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
......
0.55%
0.56%
0.56%
0.58%
0.57%
Expenses
net
of
waiver
and
payments
by
affiliates
.......
0.54%
g
0.54%
g
0.55%
g
0.55%
g
0.54%
g
Net
investment
income
...........................
2.38%
2.68%
3.01%
3.43%
3.37%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$23,615
$19,296
$14,297
$8,396
$7,678
Portfolio
turnover
rate
............................
14.21%
19.32%
15.00%
10.85%
16.78%
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Colorado
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
68
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.68
$11.96
$11.31
$11.32
$11.66
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.28
0.31
0.35
0.38
0.39
Net
realized
and
unrealized
gains
(losses)
...........
(0.28)
(0.28)
0.66
(—)
d
(0.33)
Total
from
investment
operations
....................
—
0.03
1.01
0.38
0.06
Less
distributions
from:
Net
investment
income
..........................
(0.28)
(0.31)
(0.36)
(0.39)
(0.40)
Net
asset
value,
end
of
year
.......................
$11.40
$11.68
$11.96
$11.31
$11.32
Total
return
....................................
(0.10)%
0.23%
9.06%
3.38%
0.48%
Ratios
to
average
net
assets
Expenses
.....................................
0.58%
e
0.58%
e
0.59%
e
0.59%
e
0.58%
f
Net
investment
income
...........................
2.33%
2.66%
2.97%
3.39%
3.33%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$137,797
$132,696
$115,924
$92,530
$79,093
Portfolio
turnover
rate
............................
14.21%
19.32%
15.00%
10.85%
16.78%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Amount
rounds
to
less
than
$0.01
per
share.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments,
February
28,
2022
Franklin
Colorado
Tax-Free
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
69
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
97.7%
California
0.3%
California
Municipal
Finance
Authority
,
Revenue
,
2022
A-1
,
4.25
%
,
12/01/37
.......
$
2,000,000
$
2,006,748
Colorado
92.0%
Adams
&
Weld
Counties
School
District
No.
27J
Brighton
,
GO
,
2015
,
5
%
,
12/01/40
..
7,500,000
8,393,864
Adams
12
Five
Star
Schools
,
GO
,
2016
B
,
Refunding
,
5
%
,
12/15/36
.............
5,000,000
5,756,630
Adams
State
University
,
Revenue,
2012,
Pre-Refunded,
5%,
5/15/37
..............................
370,000
373,067
Revenue,
2012,
5%,
5/15/37
.........................................
630,000
635,238
Revenue,
2019
A,
Refunding,
4%,
5/15/42
...............................
1,515,000
1,691,440
Anthem
West
Metropolitan
District
,
GO
,
2015
,
Refunding
,
BAM
Insured
,
5
%
,
12/01/35
3,000,000
3,365,675
Arapahoe
County
School
District
No.
1
Englewood
,
GO
,
2017
,
5
%
,
12/01/42
.......
7,000,000
7,966,046
Arapahoe
County
School
District
No.
6
Littleton
,
GO
,
2019
A
,
5.5
%
,
12/01/43
......
12,980,000
15,998,090
Arapahoe
County
Water
&
Wastewater
Authority
,
Revenue
,
2019
,
Refunding
,
4
%
,
12/01/37
........................................................
1,000,000
1,157,036
Auraria
Higher
Education
Center
,
Revenue
,
2013
A
,
AGMC
Insured
,
5
%
,
4/01/34
...
6,150,000
6,393,378
Board
of
Governors
of
Colorado
State
University
System
,
Revenue,
2013
A,
Refunding,
5%,
3/01/43
...............................
5,000,000
6,763,911
Revenue,
2013
C,
Pre-Refunded,
5%,
3/01/44
............................
5,135,000
5,341,504
Revenue,
2015
A,
Pre-Refunded,
5%,
3/01/40
............................
3,990,000
4,414,934
Revenue,
2015
A,
5%,
3/01/40
........................................
3,010,000
3,291,514
Revenue,
2016
B,
Pre-Refunded,
5%,
3/01/41
............................
1,000,000
1,171,244
Revenue,
2017
E,
Refunding,
4%,
3/01/43
...............................
4,500,000
4,968,314
Revenue,
2019
A,
Refunding,
5%,
3/01/49
...............................
4,000,000
4,806,768
Revenue,
A,
Refunding,
4%,
3/01/40
...................................
5,000,000
5,528,585
Board
of
Water
Commissioners
City
&
County
of
Denver
(The)
,
Revenue
,
2017
A
,
5
%
,
9/15/47
.........................................................
10,000,000
11,627,119
Boulder
Valley
School
District
No.
Re-2
Boulder
,
GO
,
2015
,
5
%
,
12/01/41
.........
5,000,000
5,499,231
a
Broomfield
Village
Metropolitan
District
No.
2
,
GO
,
144A,
2021
A-1
,
Refunding
,
5
%
,
12/01/49
........................................................
1,440,000
1,508,627
Castle
Oaks
Metropolitan
District
No.
3
,
GO
,
2020
,
Refunding
,
AGMC
Insured
,
4
%
,
12/01/50
........................................................
1,150,000
1,286,492
Centennial
Water
&
Sanitation
District
,
Revenue,
2019,
5%,
12/01/43
........................................
3,000,000
3,602,733
Revenue,
2019,
5.25%,
12/01/48
......................................
6,760,000
8,172,359
Central
Weld
County
Water
District
,
Revenue
,
2020
,
AGMC
Insured
,
4
%
,
12/01/40
..
1,000,000
1,147,469
Cherokee
Metropolitan
District
,
Revenue
,
2020
,
BAM
Insured
,
4
%
,
8/01/50
........
2,000,000
2,266,608
City
&
County
of
Denver
,
Revenue,
2016
A,
Refunding,
4%,
8/01/46
...............................
3,500,000
3,734,183
Revenue,
2018
A-1,
5%,
8/01/48
......................................
5,000,000
5,582,784
Revenue,
2021
A,
4%,
8/01/33
........................................
1,250,000
1,467,604
Revenue,
2021
A,
4%,
8/01/34
........................................
1,000,000
1,172,756
Airport
System,
Revenue,
2013
B,
5%,
11/15/43
...........................
5,000,000
5,268,777
Airport
System,
Revenue,
2018
B,
Refunding,
5%,
12/01/43
..................
5,000,000
5,865,831
Airport
System,
Revenue,
2018
B,
Refunding,
5%,
12/01/48
..................
4,440,000
5,175,486
Airport
System,
Revenue,
2019
C,
Refunding,
5%,
11/15/35
..................
3,000,000
3,635,278
City
of
Aurora
,
Water,
Revenue,
First
Lien,
2016,
Pre-Refunded,
5%,
8/01/41
................
3,000,000
3,460,226
Water,
Revenue,
First
Lien,
2016,
Pre-Refunded,
5%,
8/01/46
................
5,000,000
5,767,044
City
of
Colorado
Springs
,
Utilities
System,
Revenue,
2013
B-1,
5%,
11/15/38
.........................
4,000,000
4,235,152
Utilities
System,
Revenue,
2014
A-2,
5%,
11/15/44
.........................
5,000,000
5,411,463
Utilities
System,
Revenue,
2015
A,
Refunding,
5%,
11/15/40
.................
3,000,000
3,350,329
Utilities
System,
Revenue,
2015
A,
Refunding,
5%,
11/15/45
.................
2,665,000
2,959,997
Utilities
System,
Revenue,
2017
A-2,
Refunding,
5%,
11/15/47
................
6,000,000
6,939,491
Utilities
System,
Revenue,
2018
A-4,
5%,
11/15/48
.........................
5,000,000
5,925,435
Utilities
System,
Revenue,
2020
C,
5%,
11/15/50
..........................
3,000,000
3,682,773
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Colorado
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
70
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Colorado
(continued)
City
of
Commerce
City
,
Revenue
,
2016
,
AGMC
Insured
,
5
%
,
8/01/41
.............
$
4,000,000
$
4,520,167
City
of
Fort
Collins
,
Electric
Utility
Enterprise
,
Revenue
,
2018
A
,
5
%
,
12/01/42
......
13,500,000
16,006,571
City
of
Grand
Junction
,
COP,
2021,
4%,
12/01/40
............................................
1,500,000
1,721,204
COP,
2021,
4%,
12/01/45
............................................
1,000,000
1,136,209
Revenue,
2020
B,
4%,
3/01/45
........................................
1,500,000
1,700,102
Revenue,
2020
B,
4%,
3/01/49
........................................
1,240,000
1,398,771
Colorado
Educational
&
Cultural
Facilities
Authority
,
Alexander
Dawson
School
LLC
(The),
Revenue,
2010,
5%,
2/15/40
............
5,280,000
5,298,044
Aspen
View
Academy,
Inc.,
Revenue,
2021,
4%,
5/01/36
....................
425,000
458,326
Aspen
View
Academy,
Inc.,
Revenue,
2021,
4%,
5/01/41
....................
150,000
159,680
Aspen
View
Academy,
Inc.,
Revenue,
2021,
4%,
5/01/51
....................
370,000
389,378
Aspen
View
Academy,
Inc.,
Revenue,
2021,
4%,
5/01/61
....................
550,000
571,309
Denver
School
of
Science
&
Technology,
Inc.,
Revenue,
2021,
3%,
8/01/41
......
1,460,000
1,470,471
Denver
School
of
Science
&
Technology,
Inc.,
Revenue,
2021,
3%,
8/01/51
......
3,635,000
3,570,910
Golden
View
Classical
Academy,
Revenue,
2022,
Refunding,
4%,
1/01/26
.......
195,000
203,993
Golden
View
Classical
Academy,
Revenue,
2022,
Refunding,
4%,
1/01/32
.......
280,000
311,374
Golden
View
Classical
Academy,
Revenue,
2022,
Refunding,
4%,
1/01/52
.......
1,355,000
1,430,343
Golden
View
Classical
Academy,
Revenue,
2022,
Refunding,
4%,
1/01/62
.......
1,600,000
1,652,315
Lighthouse
Building
Corp.,
Revenue,
2021,
4%,
10/01/46
....................
345,000
357,096
Lighthouse
Building
Corp.,
Revenue,
2021,
4%,
10/01/56
....................
1,000,000
1,025,588
Lighthouse
Building
Corp.,
Revenue,
2021,
4%,
10/01/61
....................
2,210,000
2,252,437
Pinnacle
Charter
School,
Inc.,
Revenue,
2021
A,
Refunding,
4%,
12/01/50
.......
5,820,000
6,409,702
Union
Colony
Schools,
Revenue,
2018,
Refunding,
5%,
4/01/48
...............
715,000
811,703
University
of
Denver,
Revenue,
2017,
5%,
3/01/47
.........................
3,950,000
4,594,993
West
Ridge
Academy
Charter
School,
Revenue,
2019
A,
Refunding,
5%,
6/01/49
..
400,000
420,968
Westgate
Community
School,
Revenue,
2021
A,
Refunding,
4%,
7/01/41
........
2,370,000
2,617,993
Windsor
Charter
Academy
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
9/01/50
2,400,000
2,604,764
Colorado
Health
Facilities
Authority
,
AdventHealth
Obligated
Group,
Revenue,
2016
A,
Refunding,
4%,
11/15/41
......
3,000,000
3,229,160
AdventHealth
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
11/15/37
......
5,000,000
6,146,915
Boulder
Community
Health
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
10/01/35
.......................................................
1,575,000
1,762,096
Boulder
Community
Health
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
10/01/37
.......................................................
850,000
949,471
Boulder
Community
Health
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
10/01/38
.......................................................
705,000
785,995
Boulder
Community
Health
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
10/01/39
.......................................................
835,000
929,187
Boulder
Community
Health
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
10/01/40
.......................................................
725,000
805,433
BSLC
Obligated
Group,
Revenue,
2018
A-1,
Refunding,
5%,
9/15/48
...........
3,000,000
3,306,876
BSLC
Obligated
Group,
Revenue,
2018
A-1,
Refunding,
4.75%,
9/15/53
.........
1,500,000
1,608,680
Children's
Hospital
Colorado
Obligated
Group,
Revenue,
2016
A,
5%,
12/01/44
...
5,000,000
5,585,271
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/37
3,000,000
3,531,835
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/39
2,000,000
2,346,885
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/44
7,000,000
8,128,295
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
4%,
8/01/49
9,990,000
10,765,065
Covenant
Living
Communities
and
Services
Obligated
Group,
Revenue,
2013
A,
Pre-
Refunded,
5.75%,
12/01/36
.........................................
5,000,000
5,402,849
Covenant
Living
Communities
and
Services
Obligated
Group,
Revenue,
2015
A,
Refunding,
5%,
12/01/35
...........................................
7,150,000
7,795,470
Covenant
Living
Communities
and
Services
Obligated
Group,
Revenue,
2018
A,
5%,
12/01/48
.......................................................
5,000,000
5,632,473
Covenant
Living
Communities
and
Services
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
12/01/50
...........................................
5,700,000
6,270,114
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Colorado
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
71
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Colorado
(continued)
Colorado
Health
Facilities
Authority,
(continued)
Evangelical
Lutheran
Good
Samaritan
Obligated
Group,
Revenue,
2013,
Pre-
Refunded,
5.5%,
6/01/33
..........................................
$
1,000,000
$
1,055,144
Evangelical
Lutheran
Good
Samaritan
Obligated
Group,
Revenue,
2013,
Pre-
Refunded,
5.625%,
6/01/43
.........................................
4,000,000
4,226,755
Evangelical
Lutheran
Good
Samaritan
Obligated
Group,
Revenue,
2015
A,
Pre-
Refunded,
5%,
6/01/40
............................................
4,000,000
4,471,910
Evangelical
Lutheran
Good
Samaritan
Obligated
Group,
Revenue,
2015
A,
Pre-
Refunded,
5%,
6/01/45
............................................
2,750,000
3,074,438
Evangelical
Lutheran
Good
Samaritan
Obligated
Group,
Revenue,
2017,
Pre-
Refunded,
5%,
6/01/47
............................................
6,000,000
7,003,985
Parkview
Medical
Center,
Inc.
Obligated
Group,
Revenue,
2016,
5%,
9/01/46
.....
5,000,000
5,587,012
Parkview
Medical
Center,
Inc.
Obligated
Group,
Revenue,
2020
A,
4%,
9/01/50
...
6,275,000
6,766,152
Sanford
Obligated
Group,
Revenue,
2019
A,
Refunding,
4%,
11/01/39
..........
1,000,000
1,109,957
Sanford
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
11/01/44
..........
10,455,000
12,350,746
Sisters
of
Charity
of
Leavenworth
Health
System,
Inc.
Obligated
Group,
Revenue,
2019
A,
Refunding,
4%,
1/01/38
.....................................
3,660,000
4,066,412
Valley
View
Hospital
Association,
Revenue,
2015,
5%,
5/15/40
................
2,000,000
2,192,647
Valley
View
Hospital
Association,
Revenue,
2015,
5%,
5/15/45
................
1,000,000
1,093,059
Colorado
High
Performance
Transportation
Enterprise
,
Revenue
,
2017
,
5
%
,
12/31/47
2,555,000
2,810,615
Colorado
Housing
and
Finance
Authority
,
Revenue,
2019
B-1,
I,
3.15%,
10/01/44
.................................
1,000,000
1,035,548
Revenue,
2019
B-1,
I,
3.25%,
10/01/49
.................................
1,000,000
1,033,923
Colorado
Mesa
University
,
Revenue,
2016,
5%,
5/15/45
.........................................
4,000,000
4,499,992
Revenue,
2019
B,
5%,
5/15/44
........................................
1,000,000
1,198,379
Revenue,
2019
B,
5%,
5/15/49
........................................
1,565,000
1,864,307
Colorado
School
of
Mines
,
Revenue,
2012
B,
5%,
12/01/32
.......................................
110,000
113,153
Revenue,
2017
A,
5%,
12/01/42
.......................................
2,450,000
2,883,533
Revenue,
2017
A,
5%,
12/01/47
.......................................
3,000,000
3,520,401
Commerce
City
,
Northern
Infrastructure
General
Improvement
District
,
GO
,
2013
,
Refunding
,
AGMC
Insured
,
5
%
,
12/01/31
................................
2,040,000
2,101,437
Crystal
Valley
Metropolitan
District
No.
2
,
GO
,
2020
A
,
Refunding
,
AGMC
Insured
,
3
%
,
12/01/49
........................................................
3,000,000
3,059,721
Denver
City
&
County
School
District
No.
1
,
COP,
2013
C,
5%,
12/15/30
..........................................
4,000,000
4,251,364
COP,
2020
A,
5%,
12/01/42
..........................................
2,000,000
2,482,910
GO,
2017,
5%,
12/01/41
.............................................
12,440,000
14,229,712
Denver
Convention
Center
Hotel
Authority
,
Revenue,
Senior
Lien
,
2016
,
Refunding
,
5
%
,
12/01/40
.....................................................
9,775,000
10,838,140
Denver
Health
&
Hospital
Authority
,
COP,
2018,
5%,
12/01/48
............................................
5,255,000
6,026,522
Revenue,
2014
A,
5.25%,
12/01/45
....................................
9,250,000
9,746,391
Revenue,
2019
A,
Refunding,
5%,
12/01/30
..............................
1,000,000
1,193,634
Revenue,
2019
A,
Refunding,
5%,
12/01/31
..............................
1,400,000
1,664,852
Revenue,
2019
A,
Refunding,
5%,
12/01/33
..............................
3,300,000
3,916,104
Denver
International
Business
Center
Metropolitan
District
No.
1
,
GO
,
2019
A
,
4
%
,
12/01/48
........................................................
350,000
356,530
Eagle
River
Water
and
Sanitation
District
,
GO
,
2016
,
5
%
,
12/01/45
..............
1,360,000
1,526,667
East
Cherry
Creek
Valley
Water
and
Sanitation
District
,
Revenue
,
2019
A
,
4
%
,
11/15/38
1,000,000
1,138,758
El
Paso
County
School
District
No.
49
Falcon
,
COP
,
2021
,
4
%
,
12/15/46
..........
5,000,000
5,617,473
Erie
Farm
Metropolitan
District
,
GO,
2021,
Refunding,
AGMC
Insured,
5%,
12/01/41
........................
575,000
699,083
GO,
2021,
Refunding,
AGMC
Insured,
5%,
12/01/46
........................
700,000
842,393
GO,
2021,
Refunding,
AGMC
Insured,
4%,
12/01/51
........................
1,200,000
1,325,113
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Colorado
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
72
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Colorado
(continued)
Flying
Horse
Metropolitan
District
No.
2
,
GO,
2020
A,
Refunding,
AGMC
Insured,
4%,
12/01/44
......................
$
520,000
$
587,660
GO,
2020
A,
Refunding,
AGMC
Insured,
4%,
12/01/50
......................
875,000
984,714
Larimer
County
School
District
No.
R-1
Poudre
,
GO
,
2018
,
5
%
,
12/15/40
..........
5,000,000
6,038,260
Metropolitan
State
University
of
Denver
,
Revenue
,
2016
,
5
%
,
12/01/45
...........
4,000,000
4,462,837
Park
70
Metropolitan
District
,
GO,
2016,
Refunding,
5%,
12/01/36
....................................
1,000,000
1,111,525
GO,
2016,
Refunding,
5%,
12/01/46
....................................
1,500,000
1,652,614
Park
Creek
Metropolitan
District
,
Revenue,
2017
A,
5%,
12/01/41
.......................................
3,000,000
3,289,946
Revenue,
2017
A,
5%,
12/01/46
.......................................
2,500,000
2,728,453
Revenue,
Senior
Lien,
2015
A,
Refunding,
5%,
12/01/45
....................
7,000,000
7,644,923
Revenue,
Senior
Lien,
2018
A,
5%,
12/01/46
.............................
2,875,000
3,347,498
Parker
Water
&
Sanitation
District
,
Revenue
,
2018
,
5
%
,
11/01/42
................
6,475,000
7,623,782
Patriot
Park
Metropolitan
District
No.
2
,
GO
,
2021
,
4.3
%
,
12/01/50
...............
550,000
545,232
Prairiestar
Metropolitan
District
No.
2
,
GO,
2021
A,
Refunding,
BAM
Insured,
5%,
12/01/36
.......................
500,000
608,317
GO,
2021
A,
Refunding,
BAM
Insured,
5%,
12/01/41
.......................
500,000
602,136
GO,
2021
A,
Refunding,
BAM
Insured,
5%,
12/01/46
.......................
500,000
595,545
Public
Authority
for
Colorado
Energy
,
Revenue
,
2008
,
6.5
%
,
11/15/38
............
9,900,000
14,272,492
Pueblo
City
Schools
,
GO
,
2020
,
5
%
,
12/15/38
..............................
3,000,000
3,696,035
Regional
Transportation
District
,
Denver
Transit
Partners
LLC,
Revenue,
2020
A,
Refunding,
4%,
1/15/33
........
550,000
619,069
Denver
Transit
Partners
LLC,
Revenue,
2020
A,
Refunding,
4%,
7/15/35
........
1,000,000
1,120,050
Denver
Transit
Partners
LLC,
Revenue,
2020
A,
Refunding,
4%,
7/15/36
........
750,000
838,517
Denver
Transit
Partners
LLC,
Revenue,
2020
A,
Refunding,
4%,
7/15/38
........
700,000
780,477
Sales
Tax,
Revenue,
2016
A,
5%,
11/01/41
...............................
10,000,000
11,479,528
Sales
Tax,
Revenue,
2016
A,
5%,
11/01/46
...............................
11,000,000
12,579,644
Sales
Tax,
Revenue,
2021
B,
Refunding,
5%,
11/01/29
......................
5,000,000
6,184,865
Roaring
Fork
Transportation
Authority
,
Revenue
,
2019
,
Refunding
,
4
%
,
12/01/44
....
1,000,000
1,127,875
Sand
Creek
Metropolitan
District
,
GO
,
2020
B
,
Refunding
,
AGMC
Insured
,
4
%
,
12/01/40
........................................................
2,665,000
3,037,473
Silver
Peaks
Metropolitan
District
No.
3
,
GO,
Senior
Lien
,
2020
A
,
5
%
,
12/01/50
....
500,000
515,677
South
Timnath
Metropolitan
District
No.
2
,
GO
,
2016
,
Refunding
,
5
%
,
12/01/42
.....
5,690,000
6,328,280
State
of
Colorado
,
COP,
2013
I,
Pre-Refunded,
5%,
3/15/36
................................
3,000,000
3,231,641
COP,
2017
J,
5.25%,
3/15/42
.........................................
5,000,000
5,793,045
COP,
2019
O,
4%,
3/15/44
...........................................
5,000,000
5,567,930
COP,
2020,
Refunding,
4%,
6/15/39
....................................
1,000,000
1,130,047
COP,
2020,
Refunding,
4%,
6/15/41
....................................
2,550,000
2,868,696
COP,
2020
A,
4%,
12/15/39
..........................................
2,750,000
3,127,150
University
of
Colorado,
COP,
2013
A,
Pre-Refunded,
5%,
11/01/29
.............
3,105,000
3,306,338
Sterling
Hills
West
Metropolitan
District
,
GO
,
2017
,
Refunding
,
5
%
,
12/01/39
.......
1,125,000
1,288,973
Sterling
Ranch
Community
Authority
Board
,
Sterling
Ranch
Colorado
Metropolitan
District
No.
2,
Revenue,
2020
A,
Refunding,
3.75%,
12/01/40
.................................................
500,000
521,525
Sterling
Ranch
Colorado
Metropolitan
District
No.
2,
Revenue,
2020
A,
Refunding,
4.25%,
12/01/50
.................................................
1,250,000
1,322,794
Thompson
Crossing
Metropolitan
District
No.
2
,
GO
,
2016
B
,
Refunding
,
AGMC
Insured
,
5
%
,
12/01/46
..............................................
4,500,000
5,047,161
Town
of
Castle
Rock
,
Sales
&
Use
Tax,
Revenue,
2013,
Pre-Refunded,
5%,
6/01/32
................
1,845,000
1,937,705
Sales
&
Use
Tax,
Revenue,
2013,
Pre-Refunded,
5%,
6/01/35
................
2,775,000
2,914,435
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Colorado
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
73
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Colorado
(continued)
Town
of
Firestone
,
Water
Enterprise
,
Revenue
,
2020
,
Refunding
,
BAM
Insured
,
4
%
,
12/01/49
........................................................
$
1,400,000
$
1,576,673
Town
of
Monument
,
COP,
2020,
AGMC
Insured,
4%,
12/01/40
...............................
1,000,000
1,106,189
COP,
2020,
AGMC
Insured,
4%,
12/01/45
...............................
1,000,000
1,097,543
University
of
Colorado
,
Revenue,
2015
A,
Pre-Refunded,
5%,
6/01/38
............................
5,655,000
6,322,163
Revenue,
2018
B,
Pre-Refunded,
5%,
6/01/48
............................
5,000,000
6,044,581
Revenue,
2019
B,
5%,
6/01/44
........................................
1,930,000
2,316,505
Revenue,
2019
B,
Pre-Refunded,
5%,
6/01/44
............................
1,455,000
1,786,111
Revenue,
2019
B,
Pre-Refunded,
5%,
6/01/49
............................
3,295,000
4,057,484
Vauxmont
Metropolitan
District
,
GO,
2019,
Refunding,
AGMC
Insured,
5%,
12/15/27
........................
380,000
426,258
GO,
2019,
Refunding,
AGMC
Insured,
5%,
12/15/32
........................
480,000
537,065
Weld
County
School
District
No.
6
Greeley
,
GO
,
2020
,
5
%
,
12/01/40
.............
8,750,000
10,736,328
Weld
County
School
District
No.
RE-4
,
GO
,
2016
,
5.25
%
,
12/01/41
..............
5,000,000
5,790,736
Weld
County
School
District
No.
Re-5J
,
GO
,
2021
,
4
%
,
12/01/45
................
5,000,000
5,702,333
Winter
Farm
Metropolitan
District
No.
2
,
GO,
2019,
Refunding,
AGMC
Insured,
5%,
12/01/39
........................
630,000
741,294
GO,
2019,
Refunding,
AGMC
Insured,
5%,
12/01/44
........................
500,000
583,859
669,099,824
Florida
0.6%
Capital
Trust
Agency,
Inc.
,
Kingdom
Development
Obligated
Group,
Revenue,
2021
A-1,
3.75%,
12/01/36
....
4,104,000
4,026,229
a
SHI
-
Lake
Osborne
LLC,
Revenue,
144A,
2021
A-1,
3.68%,
1/01/57
...........
800,000
716,134
4,742,363
Georgia
0.3%
a
Development
Authority
of
Rockdale
County
,
AHPC
Terraces
at
Fieldstone
LLC
,
Revenue
,
144A,
2021
A-1
,
3.5
%
,
12/01/36
...............................
2,400,000
2,241,712
Illinois
0.9%
State
of
Illinois
,
GO,
2003,
5.1%,
6/01/33
............................................
3,000,000
3,311,733
GO,
2019
B,
4%,
11/01/33
...........................................
1,250,000
1,355,473
GO,
2021
A,
5%,
3/01/31
............................................
650,000
780,576
GO,
2021
A,
5%,
3/01/32
............................................
500,000
597,282
GO,
2021
A,
4%,
3/01/39
............................................
500,000
540,400
6,585,464
New
York
0.1%
Metropolitan
Transportation
Authority
,
Revenue
,
2021
A-1
,
4
%
,
11/15/46
..........
900,000
971,552
South
Carolina
0.5%
South
Carolina
Jobs-Economic
Development
Authority
,
a
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
1,400,000
1,310,051
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
1,400,000
1,308,589
a
South
Carolina
State
Housing
Finance
&
Development
Authority
,
Garden
Oaks
LP
,
Revenue
,
144A,
2021
A
,
4.2
%
,
12/01/39
................................
750,000
698,302
3,316,942
Texas
0.6%
a
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
1,900,000
1,762,598
a
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
A-2
,
5
%
,
12/01/52
............
2,400,000
2,407,740
4,170,338
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Colorado
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
74
s
See
Abbreviations
on
page
176
.
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Washington
0.2%
a
Washington
State
Housing
Finance
Commission
,
Madison
at
Rivers
Edge
Apartments
LLC
,
Revenue
,
144A,
2021
A
,
3.65
%
,
1/01/37
............................
$
1,400,000
$
1,309,692
Wisconsin
1.2%
a
Public
Finance
Authority
,
Revenue,
144A,
2022,
B-1,
4%,
12/28/44
................................
1,400,000
1,348,920
Affordable
Housing
Preservation
Corp.
(The),
Revenue,
144A,
2021,
5.25%,
12/01/22
.......................................................
5,000,000
4,976,997
AL-FL
Portfolio
Obligated
Group,
Revenue,
144A,
2021
A,
3.4%,
12/01/36
.......
2,400,000
2,238,099
8,564,016
U.S.
Territories
1.0%
Guam
0.2%
Guam
Government
Waterworks
Authority
,
Revenue
,
2020
A
,
5
%
,
1/01/50
.........
1,500,000
1,753,129
Puerto
Rico
0.8%
Puerto
Rico
Electric
Power
Authority
,
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/32
....................
1,200,000
1,270,779
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/34
....................
1,000,000
1,060,346
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue,
CC,
Refunding,
AGMC
Insured,
5.5%,
7/01/31
....................
1,670,000
1,780,882
Revenue,
L,
Refunding,
AGMC
Insured,
5.25%,
7/01/41
.....................
1,485,000
1,544,831
5,656,838
Total
U.S.
Territories
....................................................................
7,409,967
Total
Municipal
Bonds
(Cost
$683,064,570)
.....................................
710,418,618
a
a
a
a
Short
Term
Investments
0.2%
Municipal
Bonds
0.2%
Colorado
0.2%
b
City
&
County
of
Denver
,
COP,
2008
A-1,
Refunding,
SPA
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
0.06%,
12/01/29
.................................................
300,000
300,000
COP,
2008
A-3,
Refunding,
SPA
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
0.06%,
12/01/31
.................................................
1,300,000
1,300,000
1,600,000
Total
Municipal
Bonds
(Cost
$1,600,000)
.......................................
1,600,000
Total
Short
Term
Investments
(Cost
$1,600,000
)
.................................
1,600,000
a
Total
Investments
(Cost
$684,664,570)
97.9%
...................................
$712,018,618
Other
Assets,
less
Liabilities
2.1%
.............................................
15,352,804
Net
Assets
100.0%
...........................................................
$727,371,422
a
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
February
28,
2022,
the
aggregate
value
of
these
securities
was
$20,518,872,
representing
2.8%
of
net
assets.
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Colorado
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
75
b
Variable
rate
demand
notes
(VRDNs)
are
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.
Unless
otherwise
noted,
the
coupon
rate
is
determined
based
on
factors
including
supply
and
demand,
underlying
credit,
tax
treatment,
and
current
short
term
rates.
The
coupon
rate
shown
represents
the
rate
at
period
end.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Connecticut
Tax-Free
Income
Fund
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
76
a
Year
Ended
February
28,
Year
Ended
February
28,
2019
b
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
................................
$10.17
$10.39
$10.05
$10.01
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.20
0.26
0.29
0.14
Net
realized
and
unrealized
gains
(losses)
........................
(0.32)
(0.22)
0.36
0.04
Total
from
investment
operations
.................................
(0.12)
0.04
0.65
0.18
Less
distributions
from:
Net
investment
income
.......................................
(0.20)
(0.26)
(0.31)
(0.14)
Net
asset
value,
end
of
year
....................................
$9.85
$10.17
$10.39
$10.05
Total
return
e
................................................
(1.23)%
0.42%
6.54%
1.86%
Ratios
to
average
net
assets
f
Expenses
g
.................................................
0.98%
0.94%
0.93%
0.92%
Net
investment
income
........................................
1.95%
2.58%
2.83%
2.98%
Supplemental
data
Net
assets,
end
of
year
(000’s)
..................................
$34,084
$28,498
$21,670
$13,765
Portfolio
turnover
rate
.........................................
23.52%
20.73%
11.63%
15.00%
a
For
the
year
ended
February
29.
b
For
the
period
September
10,
2018
(effective
date)
to
February
28,
2019.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Connecticut
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
77
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.16
$10.38
$10.04
$10.08
$10.42
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.22
0.28
0.30
0.31
0.32
Net
realized
and
unrealized
gains
(losses)
...........
(0.32)
(0.22)
0.36
(0.03)
(0.32)
Total
from
investment
operations
....................
(0.10)
0.06
0.66
0.28
—
Less
distributions
from:
Net
investment
income
..........................
(0.22)
(0.28)
(0.32)
(0.32)
(0.34)
Net
asset
value,
end
of
year
.......................
$9.84
$10.16
$10.38
$10.04
$10.08
Total
return
d
...................................
(1.08)%
0.57%
6.70%
2.86%
0.03%
Ratios
to
average
net
assets
Expenses
.....................................
0.83%
e
0.79%
e
0.78%
e
0.77%
e
0.74%
Net
investment
income
...........................
2.12%
2.76%
2.98%
3.13%
3.15%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$119,599
$135,916
$150,081
$160,148
$187,638
Portfolio
turnover
rate
............................
23.52%
20.73%
11.63%
15.00%
4.27%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Connecticut
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
78
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.24
$10.46
$10.13
$10.16
$10.50
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.16
0.23
0.25
0.26
0.27
Net
realized
and
unrealized
gains
(losses)
...........
(0.32)
(0.23)
0.35
(0.02)
(0.32)
Total
from
investment
operations
....................
(0.16)
—
0.60
0.24
(0.05)
Less
distributions
from:
Net
investment
income
..........................
(0.16)
(0.22)
(0.27)
(0.27)
(0.29)
Net
asset
value,
end
of
year
.......................
$9.92
$10.24
$10.46
$10.13
$10.16
Total
return
d
...................................
(1.62)%
0.02%
5.98%
2.37%
(0.52)%
Ratios
to
average
net
assets
Expenses
.....................................
1.38%
e
1.34%
e
1.33%
e
1.32%
e
1.29%
Net
investment
income
...........................
1.58%
2.21%
2.43%
2.58%
2.60%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$7,281
$13,302
$20,421
$26,076
$45,183
Portfolio
turnover
rate
............................
23.52%
20.73%
11.63%
15.00%
4.27%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Connecticut
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
79
a
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2022
2021
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.16
$10.38
$10.04
$10.08
$10.30
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.23
0.29
0.32
0.33
0.20
Net
realized
and
unrealized
gains
(losses)
...........
(0.32)
(0.22)
0.36
(0.03)
(0.22)
Total
from
investment
operations
....................
(0.09)
0.07
0.68
0.30
(0.02)
Less
distributions
from:
Net
investment
income
..........................
(0.23)
(0.29)
(0.34)
(0.34)
(0.20)
Net
asset
value,
end
of
year
.......................
$9.84
$10.16
$10.38
$10.04
$10.08
Total
return
e
...................................
(0.91)%
0.71%
6.85%
2.99%
(0.19)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
......
0.68%
0.70%
0.70%
0.65%
0.77%
Expenses
net
of
waiver
and
payments
by
affiliates
.......
0.67%
g
0.66%
g
0.64%
g
0.63%
g
0.60%
Net
investment
income
...........................
2.27%
2.79%
3.12%
3.27%
3.29%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$1,815
$1,385
$299
$147
$324
Portfolio
turnover
rate
............................
23.52%
20.73%
11.63%
15.00%
4.27%
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Connecticut
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
80
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.15
$10.37
$10.04
$10.08
$10.42
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.23
0.29
0.31
0.32
0.33
Net
realized
and
unrealized
gains
(losses)
...........
(0.32)
(0.22)
0.35
(0.03)
(0.32)
Total
from
investment
operations
....................
(0.09)
0.07
0.66
0.29
0.01
Less
distributions
from:
Net
investment
income
..........................
(0.23)
(0.29)
(0.33)
(0.33)
(0.35)
Net
asset
value,
end
of
year
.......................
$9.83
$10.15
$10.37
$10.04
$10.08
Total
return
....................................
(0.98)%
0.67%
6.71%
2.96%
0.13%
Ratios
to
average
net
assets
Expenses
.....................................
0.73%
d
0.69%
d
0.68%
d
0.67%
d
0.64%
Net
investment
income
...........................
2.22%
2.85%
3.08%
3.23%
3.25%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$20,378
$20,968
$20,024
$19,351
$20,855
Portfolio
turnover
rate
............................
23.52%
20.73%
11.63%
15.00%
4.27%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments,
February
28,
2022
Franklin
Connecticut
Tax-Free
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
81
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
98.6%
Connecticut
92.4%
City
of
Ansonia
,
GO,
2021
A,
AGMC
Insured,
4%,
2/15/31
................................
$
170,000
$
198,773
GO,
2021
A,
AGMC
Insured,
4%,
2/15/33
................................
100,000
116,236
GO,
2021
A,
AGMC
Insured,
4%,
2/15/34
................................
100,000
116,121
GO,
2021
A,
AGMC
Insured,
3%,
2/15/37
................................
500,000
521,268
City
of
Bridgeport
,
GO,
2021
A,
4%,
8/01/40
............................................
765,000
861,947
GO,
2021
A,
4%,
8/01/46
............................................
375,000
417,222
GO,
2021
A,
4%,
8/01/51
............................................
575,000
636,680
City
of
New
Britain
,
GO
,
2017
C
,
AGMC
Insured
,
5
%
,
3/01/36
..................
1,000,000
1,142,176
City
of
New
Haven
,
GO,
2002
C,
NATL
Insured,
ETM,
5%,
11/01/22
...........................
25,000
25,093
GO,
2021
A,
Refunding,
4%,
8/01/40
...................................
2,000,000
2,187,880
City
of
Stamford
,
Water
Pollution
Control
System
&
Facility,
Revenue,
2013
A,
5.25%,
8/15/43
.....
1,000,000
1,056,555
Water
Pollution
Control
System
&
Facility,
Revenue,
2020
A,
4%,
11/15/45
.......
1,175,000
1,347,298
City
of
West
Haven
,
GO
,
2021
,
4
%
,
9/15/41
...............................
565,000
623,735
Connecticut
Housing
Finance
Authority
,
Revenue,
2019
E-E1,
3.05%,
11/15/44
..................................
5,000,000
5,061,826
Revenue,
2019
E-E1,
3.1%,
11/15/49
...................................
2,000,000
2,019,023
Revenue,
2020
C-1,
Refunding,
2.05%,
5/15/37
...........................
1,000,000
935,193
Revenue,
2020
C-2,
Refunding,
2.2%,
11/15/34
...........................
980,000
940,483
Connecticut
Municipal
Electric
Energy
Cooperative
,
Revenue
,
2013
A
,
Refunding
,
5
%
,
1/01/38
.........................................................
3,000,000
3,091,864
Connecticut
State
Health
&
Educational
Facilities
Authority
,
Avon
Old
Farms
School
Obligated
Group,
Revenue,
D-1,
Refunding,
4%,
7/01/46
..
1,000,000
1,117,842
Choate
Rosemary
Hall
Foundation,
Inc.
(The),
Revenue,
F,
Refunding,
4%,
7/01/34
345,000
397,467
Choate
Rosemary
Hall
Foundation,
Inc.
(The),
Revenue,
F,
Refunding,
4%,
7/01/35
310,000
356,767
Choate
Rosemary
Hall
Foundation,
Inc.
(The),
Revenue,
F,
Refunding,
4%,
7/01/36
480,000
551,863
Choate
Rosemary
Hall
Foundation,
Inc.
(The),
Revenue,
F,
Refunding,
4%,
7/01/37
600,000
688,798
Choate
Rosemary
Hall
Foundation,
Inc.
(The),
Revenue,
F,
Refunding,
4%,
7/01/38
315,000
360,941
Choate
Rosemary
Hall
Foundation,
Inc.
(The),
Revenue,
F,
Refunding,
4%,
7/01/39
380,000
434,622
Choate
Rosemary
Hall
Foundation,
Inc.
(The),
Revenue,
F,
Refunding,
4%,
7/01/42
860,000
978,644
Connecticut
College,
Revenue,
L-1,
Refunding,
4%,
7/01/46
..................
5,000,000
5,453,780
Covenant
Living
Communities
and
Services
Obligated
Group,
Revenue,
2018
B,
5%,
12/01/40
.......................................................
4,000,000
4,552,385
Fairfield
University,
Revenue,
Q-1,
5%,
7/01/46
...........................
9,000,000
10,198,027
Hartford
HealthCare
Obligated
Group,
Revenue,
2021
A,
4%,
7/01/46
..........
1,500,000
1,686,034
Jerome
Home,
Revenue,
2021
E,
Refunding,
4%,
7/01/41
...................
735,000
783,305
Jerome
Home,
Revenue,
2021
E,
Refunding,
4%,
7/01/51
...................
1,250,000
1,306,434
Nuvance
Health
Obligated
Group,
Revenue,
2019
A,
Refunding,
4%,
7/01/38
.....
1,000,000
1,079,440
Nuvance
Health
Obligated
Group,
Revenue,
2019
A,
Refunding,
4%,
7/01/41
.....
6,310,000
6,781,545
Quinnipiac
University,
Revenue,
L,
Refunding,
5%,
7/01/45
..................
8,250,000
8,986,667
Sacred
Heart
University,
Inc.,
Revenue,
I-1,
Refunding,
5%,
7/01/42
............
4,375,000
4,983,188
Sacred
Heart
University,
Inc.,
Revenue,
K,
4%,
7/01/45
.....................
1,200,000
1,320,003
Stamford
Hospital
Obligated
Group
(The),
Revenue,
J,
Refunding,
5%,
7/01/42
...
2,500,000
2,535,219
a
Stamford
Hospital
Obligated
Group
(The),
Revenue,
M,
Refunding,
4%,
7/01/37
...
2,550,000
2,811,731
Taft
School
Corp.
(The),
Revenue,
L,
Refunding,
3%,
7/01/46
.................
2,210,000
2,222,302
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2016,
5%,
12/01/41
............
5,000,000
5,639,526
Trustees
of
Trinity
College
(The),
Revenue,
R,
Refunding,
4%,
6/01/45
..........
2,500,000
2,767,283
Trustees
of
Trinity
College
(The),
Revenue,
S,
Refunding,
4%,
6/01/46
..........
2,000,000
2,219,446
Trustees
of
Trinity
College
(The),
Revenue,
S,
Refunding,
4%,
6/01/51
..........
2,000,000
2,208,521
Yale-New
Haven
Health
Obligated
Group,
Revenue,
N,
5%,
7/01/48
............
5,000,000
5,244,444
Connecticut
State
Higher
Education
Supplement
Loan
Authority
,
Revenue,
2020
B,
3.25%,
11/15/36
....................................
1,700,000
1,691,519
Revenue,
2020
D,
Refunding,
3%,
11/15/35
..............................
1,145,000
1,141,460
Revenue,
2021
B,
2.25%,
11/15/37
....................................
2,500,000
2,348,320
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Connecticut
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
82
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Connecticut
(continued)
Hartford
County
Metropolitan
District
,
Clean
Water
Project
,
Revenue
,
2014
A
,
Pre-
Refunded
,
5
%
,
11/01/42
.............................................
$
5,000,000
$
5,487,095
South
Central
Connecticut
Regional
Water
Authority
,
Revenue,
A-Thirtieth,
Pre-Refunded,
5%,
8/01/39
..........................
1,500,000
1,635,443
Revenue,
A-Thirtieth,
Pre-Refunded,
5%,
8/01/44
..........................
1,615,000
1,760,826
Revenue,
Second
Series,
B-Thirty
Second,
Refunding,
5%,
8/01/38
............
1,720,000
1,960,104
State
of
Connecticut
,
GO,
2020
A,
4%,
1/15/36
............................................
5,000,000
5,685,856
GO,
2020
A,
4%,
1/15/38
............................................
2,250,000
2,537,050
GO,
2020
C,
4%,
6/01/39
............................................
600,000
678,659
Special
Tax,
2013,
5%,
10/01/30
......................................
5,000,000
5,293,842
Special
Tax,
2016
A,
5%,
9/01/33
......................................
1,000,000
1,141,461
Special
Tax,
2018
A,
5%,
1/01/36
......................................
1,000,000
1,175,191
Special
Tax,
2020
A,
5%,
5/01/37
......................................
500,000
612,983
Special
Tax,
2020
A,
4%,
5/01/39
......................................
1,000,000
1,129,894
Special
Tax,
2021
A,
4%,
5/01/40
......................................
1,100,000
1,254,478
Bradley
International
Airport
CFC,
Revenue,
2019
A,
5%,
7/01/49
..............
1,400,000
1,588,672
Clean
Water
Fund
-
State
Revolving
Fund,
Revenue,
2015
A,
5%,
3/01/34
.......
5,000,000
5,513,871
Clean
Water
Fund
-
State
Revolving
Fund,
Revenue,
2015
A,
5%,
3/01/35
.......
1,000,000
1,101,845
Clean
Water
Fund
-
State
Revolving
Fund,
Revenue,
2017
A,
5%,
5/01/37
.......
3,000,000
3,482,549
Clean
Water
Fund
-
State
Revolving
Fund,
Revenue,
2019
A,
4%,
2/01/37
.......
1,500,000
1,714,928
Town
of
Darien
,
GO
,
2020
A
,
Refunding
,
4
%
,
8/01/39
........................
350,000
396,008
Town
of
Hamden
,
GO
,
2021
,
Refunding
,
BAM
Insured
,
4
%
,
8/15/41
..............
500,000
559,119
Town
of
Stafford
,
GO,
2021,
Refunding,
3%,
2/01/36
.....................................
250,000
260,565
GO,
2021,
Refunding,
3%,
2/01/38
.....................................
310,000
321,886
GO,
2021,
Refunding,
3%,
2/01/41
.....................................
300,000
309,351
Town
of
Stratford
,
GO,
2017,
AGMC
Insured,
5%,
7/01/33
.................................
1,000,000
1,107,616
GO,
2020
A,
Refunding,
BAM
Insured,
5%,
7/01/31
........................
1,000,000
1,238,250
GO,
2020
A,
Refunding,
BAM
Insured,
4%,
7/01/36
........................
300,000
341,954
GO,
2020
A,
Refunding,
BAM
Insured,
4%,
7/01/38
........................
300,000
340,559
GO,
2020
A,
Refunding,
BAM
Insured,
4%,
7/01/40
........................
300,000
339,381
Town
of
Windham
,
GO
,
2020
,
Refunding
,
4
%
,
8/15/45
........................
2,000,000
2,260,848
University
of
Connecticut
,
Revenue,
2013
A,
5%,
8/15/28
........................................
6,590,000
6,942,006
Revenue,
2014
A,
5%,
2/15/31
........................................
2,000,000
2,134,955
Revenue,
2017
A,
5%,
1/15/37
........................................
1,000,000
1,147,147
Revenue,
2020
A,
5%,
2/15/39
........................................
1,000,000
1,204,941
Revenue,
2020
A,
5%,
2/15/40
........................................
1,000,000
1,203,098
Revenue,
2020
A,
5%,
2/15/41
........................................
995,000
1,195,456
169,204,783
Florida
0.2%
b
Capital
Trust
Agency,
Inc.
,
SHI
-
Lake
Osborne
LLC
,
Revenue
,
144A,
2021
A-1
,
3.68
%
,
1/01/57
.........................................................
500,000
447,584
Georgia
0.3%
b
Development
Authority
of
Rockdale
County
,
AHPC
Terraces
at
Fieldstone
LLC
,
Revenue
,
144A,
2021
A-1
,
3.5
%
,
12/01/36
...............................
625,000
583,779
Illinois
0.6%
State
of
Illinois
,
GO
,
2020
C
,
4
%
,
10/01/42
................................
1,000,000
1,070,447
New
Jersey
0.4%
New
Jersey
Economic
Development
Authority
,
Revenue,
2021
QQQ,
4%,
6/15/35
.....................................
300,000
329,563
Revenue,
2021
QQQ,
4%,
6/15/36
.....................................
100,000
109,575
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Connecticut
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
83
s
See
Abbreviations
on
page
176
.
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
New
Jersey
(continued)
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue
,
2020
AA
,
3
%
,
6/15/50
...
$
230,000
$
214,224
653,362
South
Carolina
0.5%
South
Carolina
Jobs-Economic
Development
Authority
,
b
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
500,000
467,875
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
500,000
467,353
935,228
Texas
1.0%
b
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
500,000
463,842
Lake
Houston
Redevelopment
Authority
,
City
of
Houston
Reinvestment
Zone
No.
10
,
Revenue
,
2021
,
Refunding
,
3
%
,
9/01/47
.................................
780,000
732,409
b
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
A-2
,
5
%
,
12/01/52
............
615,000
616,983
1,813,234
Washington
0.3%
b
Washington
State
Housing
Finance
Commission
,
Madison
at
Rivers
Edge
Apartments
LLC
,
Revenue
,
144A,
2021
A
,
3.65
%
,
1/01/37
............................
500,000
467,747
Wisconsin
0.9%
b
Public
Finance
Authority
,
Revenue,
144A,
2022,
B-1,
4%,
12/28/44
................................
400,000
385,406
Affordable
Housing
Preservation
Corp.
(The),
Revenue,
144A,
2021,
5.25%,
12/01/22
.......................................................
1,300,000
1,294,019
1,679,425
U.S.
Territories
2.0%
Puerto
Rico
2.0%
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue,
CC,
Refunding,
AGMC
Insured,
5.25%,
7/01/34
...................
2,010,000
2,105,911
Revenue,
CC,
Refunding,
AGMC
Insured,
5.5%,
7/01/31
....................
1,480,000
1,578,266
3,684,177
Total
U.S.
Territories
....................................................................
3,684,177
Total
Municipal
Bonds
(Cost
$177,821,684)
.....................................
180,539,766
a
a
a
a
Short
Term
Investments
0.8%
Municipal
Bonds
0.8%
Connecticut
0.8%
c
Connecticut
State
Health
&
Educational
Facilities
Authority
,
Yale
University
,
Revenue
,
2001
V-2
,
Daily
VRDN
and
Put
,
0.01
%
,
7/01/36
...........................
1,400,000
1,400,000
Total
Municipal
Bonds
(Cost
$1,400,000)
.......................................
1,400,000
Total
Short
Term
Investments
(Cost
$1,400,000
)
.................................
1,400,000
a
Total
Investments
(Cost
$179,221,684)
99.4%
...................................
$181,939,766
Other
Assets,
less
Liabilities
0.6%
.............................................
1,217,042
Net
Assets
100.0%
...........................................................
$183,156,808
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Connecticut
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
84
a
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).
b
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
February
28,
2022,
the
aggregate
value
of
these
securities
was
$4,727,235,
representing
2.6%
of
net
assets.
c
Variable
rate
demand
notes
(VRDNs)
are
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.
Unless
otherwise
noted,
the
coupon
rate
is
determined
based
on
factors
including
supply
and
demand,
underlying
credit,
tax
treatment,
and
current
short
term
rates.
The
coupon
rate
shown
represents
the
rate
at
period
end.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Michigan
Tax-Free
Income
Fund
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
85
a
Year
Ended
February
28,
Year
Ended
February
28,
2019
b
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
................................
$11.84
$12.03
$11.31
$11.19
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.26
0.28
0.29
0.15
Net
realized
and
unrealized
gains
(losses)
........................
(0.41)
(0.19)
0.74
0.12
Total
from
investment
operations
.................................
(0.15)
0.09
1.03
0.27
Less
distributions
from:
Net
investment
income
.......................................
(0.26)
(0.28)
(0.31)
(0.15)
Net
asset
value,
end
of
year
....................................
$11.43
$11.84
$12.03
$11.31
Total
return
e
................................................
(1.35)%
0.75%
9.19%
2.46%
Ratios
to
average
net
assets
f
Expenses
g
.................................................
0.83%
0.82%
0.82%
0.83%
Net
investment
income
........................................
2.16%
2.34%
2.51%
2.86%
Supplemental
data
Net
assets,
end
of
year
(000’s)
..................................
$134,390
$107,468
$74,740
$33,739
Portfolio
turnover
rate
.........................................
22.05%
10.86%
4.08%
11.55%
a
For
the
year
ended
February
29.
b
For
the
period
September
10,
2018
(effective
date)
to
February
28,
2019.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Michigan
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
86
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.82
$12.02
$11.30
$11.25
$11.52
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.28
0.30
0.31
0.34
0.36
Net
realized
and
unrealized
gains
(losses)
...........
(0.40)
(0.20)
0.73
0.06
(0.26)
Total
from
investment
operations
....................
(0.12)
0.10
1.04
0.40
0.10
Less
distributions
from:
Net
investment
income
..........................
(0.28)
(0.30)
(0.32)
(0.35)
(0.37)
Net
asset
value,
end
of
year
.......................
$11.42
$11.82
$12.02
$11.30
$11.25
Total
return
d
...................................
(1.12)%
0.82%
9.36%
3.59%
0.85%
Ratios
to
average
net
assets
Expenses
.....................................
0.68%
e
0.67%
e
0.67%
e
0.68%
e
0.67%
Net
investment
income
...........................
2.32%
2.51%
2.66%
3.01%
3.11%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$628,769
$688,038
$731,568
$727,705
$797,935
Portfolio
turnover
rate
............................
22.05%
10.86%
4.08%
11.55%
12.74%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Michigan
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
87
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$12.02
$12.21
$11.48
$11.43
$11.69
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.21
0.23
0.25
0.28
0.30
Net
realized
and
unrealized
gains
(losses)
...........
(0.41)
(0.19)
0.74
0.05
(0.26)
Total
from
investment
operations
....................
(0.20)
0.04
0.99
0.33
0.04
Less
distributions
from:
Net
investment
income
..........................
(0.21)
(0.23)
(0.26)
(0.28)
(0.30)
Net
asset
value,
end
of
year
.......................
$11.61
$12.02
$12.21
$11.48
$11.43
Total
return
d
...................................
(1.73)%
0.35%
8.74%
2.96%
0.36%
Ratios
to
average
net
assets
Expenses
.....................................
1.22%
e
1.22%
e
1.22%
e
1.23%
e
1.22%
Net
investment
income
...........................
1.73%
1.93%
2.11%
2.46%
2.56%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$43,148
$60,847
$78,321
$80,062
$124,683
Portfolio
turnover
rate
............................
22.05%
10.86%
4.08%
11.55%
12.74%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Michigan
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
88
a
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2022
2021
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.87
$12.07
$11.35
$11.29
$11.53
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.29
0.31
0.33
0.35
0.22
Net
realized
and
unrealized
gains
(losses)
...........
(0.41)
(0.20)
0.73
0.07
(0.24)
Total
from
investment
operations
....................
(0.12)
0.11
1.06
0.42
(0.02)
Less
distributions
from:
Net
investment
income
..........................
(0.29)
(0.31)
(0.34)
(0.36)
(0.22)
Net
asset
value,
end
of
year
.......................
$11.46
$11.87
$12.07
$11.35
$11.29
Total
return
e
...................................
(1.06)%
0.96%
9.48%
3.79%
(0.21)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
......
0.55%
0.55%
0.55%
0.57%
0.58%
Expenses
net
of
waiver
and
payments
by
affiliates
.......
0.54%
g
0.53%
g
0.53%
g
0.54%
g
0.53%
Net
investment
income
...........................
2.44%
2.62%
2.80%
3.15%
3.25%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$11,255
$6,228
$4,153
$3,042
$2,510
Portfolio
turnover
rate
............................
22.05%
10.86%
4.08%
11.55%
12.74%
b
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(
effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Michigan
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
89
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.86
$12.06
$11.34
$11.29
$11.55
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.29
0.31
0.32
0.35
0.37
Net
realized
and
unrealized
gains
(losses)
...........
(0.40)
(0.20)
0.74
0.06
(0.25)
Total
from
investment
operations
....................
(0.11)
0.11
1.06
0.41
0.12
Less
distributions
from:
Net
investment
income
..........................
(0.29)
(0.31)
(0.34)
(0.36)
(0.38)
Net
asset
value,
end
of
year
.......................
$11.46
$11.86
$12.06
$11.34
$11.29
Total
return
....................................
(1.01)%
0.92%
9.44%
3.67%
1.03%
Ratios
to
average
net
assets
Expenses
.....................................
0.58%
d
0.57%
d
0.57%
d
0.58%
d
0.57%
Net
investment
income
...........................
2.41%
2.59%
2.76%
3.11%
3.21%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$107,625
$102,001
$79,717
$63,190
$53,587
Portfolio
turnover
rate
............................
22.05%
10.86%
4.08%
11.55%
12.74%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments,
February
28,
2022
Franklin
Michigan
Tax-Free
Income
Fund
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
90
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
99.4%
California
0.3%
California
Municipal
Finance
Authority
,
Revenue
,
2022
A-1
,
4.25
%
,
12/01/37
.......
$
2,650,000
$
2,658,941
Florida
0.6%
Capital
Trust
Agency,
Inc.
,
Kingdom
Development
Obligated
Group,
Revenue,
2021
A-1,
3.75%,
12/01/36
....
5,256,000
5,156,399
a
SHI
-
Lake
Osborne
LLC,
Revenue,
144A,
2021
A-1,
3.68%,
1/01/57
...........
900,000
805,650
5,962,049
Illinois
0.5%
b
Metropolitan
Pier
&
Exposition
Authority
,
Revenue
,
2022
A
,
Refunding
,
4
%
,
6/15/52
..
2,500,000
2,618,859
State
of
Illinois
,
GO
,
2021
A
,
4
%
,
3/01/40
.................................
1,860,000
2,004,953
4,623,812
Michigan
92.4%
Ann
Arbor
School
District
,
GO
,
2015
,
Refunding
,
5
%
,
5/01/29
..................
1,235,000
1,369,146
b
Battle
Creek
School
District
,
GO
,
2022
,
4
%
,
5/01/47
.........................
3,000,000
3,453,629
Byron
Center
Public
Schools
,
GO,
2017
I,
5%,
5/01/34
.............................................
1,000,000
1,162,461
GO,
2017
I,
5%,
5/01/35
.............................................
1,920,000
2,227,801
GO,
2017
I,
5%,
5/01/36
.............................................
650,000
753,507
GO,
2017
I,
5%,
5/01/37
.............................................
1,480,000
1,714,884
GO,
2017
I,
5%,
5/01/38
.............................................
1,330,000
1,538,232
GO,
2017
I,
5%,
5/01/39
.............................................
2,290,000
2,644,868
GO,
2017
I,
5%,
5/01/43
.............................................
2,250,000
2,583,119
GO,
2017
I,
5%,
5/01/47
.............................................
4,140,000
4,715,828
Caledonia
Community
Schools
,
GO
,
2015
,
Refunding
,
5
%
,
5/01/26
..............
1,000,000
1,146,018
Central
Michigan
University
,
Revenue,
2014,
Refunding,
5%,
10/01/30
................................
1,910,000
2,065,414
Revenue,
2014,
Refunding,
5%,
10/01/31
................................
1,055,000
1,139,454
Revenue,
2014,
Refunding,
5%,
10/01/34
................................
1,600,000
1,727,240
Revenue,
2014,
Refunding,
5%,
10/01/39
................................
2,000,000
2,164,319
Revenue,
2021,
Refunding,
3%,
10/01/46
................................
1,325,000
1,335,876
Revenue,
2021,
Refunding,
4%,
10/01/51
................................
1,250,000
1,404,128
Charter
Township
of
Bloomfield
,
GO,
2016,
Refunding,
5%,
5/01/29
.....................................
470,000
540,275
GO,
2016,
Refunding,
5%,
5/01/32
.....................................
1,000,000
1,142,964
Charter
Township
of
Commerce
,
GO
,
2016
,
Refunding
,
5
%
,
12/01/38
............
3,250,000
3,639,855
City
of
Battle
Creek
,
Water
&
Wastewater
System
,
Revenue
,
2016
A
,
5
%
,
6/01/36
...
1,300,000
1,474,818
City
of
Detroit
,
Great
Lakes
Water
Authority
Water
Supply
System,
Revenue,
Second
Lien,
2003
B,
NATL
Insured,
5%,
7/01/34
.........................................
25,000
25,091
Great
Lakes
Water
Authority
Water
Supply
System,
Revenue,
Senior
Lien,
06A,
AGMC
Insured,
5%,
7/01/34
........................................
30,000
30,110
City
of
Grand
Rapids
,
Sanitary
Sewer
System,
Revenue,
2014,
Pre-Refunded,
5%,
1/01/33
...........
1,125,000
1,204,163
Sanitary
Sewer
System,
Revenue,
2014,
Pre-Refunded,
5%,
1/01/34
...........
1,000,000
1,070,368
Sanitary
Sewer
System,
Revenue,
2014,
Pre-Refunded,
5%,
1/01/35
...........
1,500,000
1,605,551
Sanitary
Sewer
System,
Revenue,
2014,
Pre-Refunded,
5%,
1/01/39
...........
880,000
941,923
Sanitary
Sewer
System,
Revenue,
2016,
Refunding,
5%,
1/01/36
..............
1,250,000
1,404,876
Sanitary
Sewer
System,
Revenue,
2018,
5%,
1/01/37
.......................
1,040,000
1,224,819
Sanitary
Sewer
System,
Revenue,
2018,
5%,
1/01/43
.......................
1,000,000
1,164,206
Sanitary
Sewer
System,
Revenue,
2018,
5%,
1/01/48
.......................
5,000,000
5,788,143
Sanitary
Sewer
System,
Revenue,
2020,
Refunding,
5%,
1/01/45
..............
1,500,000
1,816,922
Sanitary
Sewer
System,
Revenue,
2020,
Refunding,
4%,
1/01/50
..............
3,440,000
3,832,840
Water
Supply
System,
Revenue,
2016,
Refunding,
5%,
1/01/41
...............
2,190,000
2,434,615
Water
Supply
System,
Revenue,
2016,
Refunding,
5%,
1/01/46
...............
2,525,000
2,789,322
Water
Supply
System,
Revenue,
2018,
Refunding,
5%,
1/01/43
...............
1,500,000
1,746,309
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Michigan
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
91
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Michigan
(continued)
City
of
Grand
Rapids,
(continued)
Water
Supply
System,
Revenue,
2018,
Refunding,
5%,
1/01/48
...............
$
2,000,000
$
2,315,257
Water
Supply
System,
Revenue,
2020,
5%,
1/01/45
........................
2,425,000
2,937,358
Water
Supply
System,
Revenue,
2020,
5%,
1/01/50
........................
3,000,000
3,615,054
County
of
Kent
,
GO,
2016,
5%,
6/01/32
.............................................
1,305,000
1,495,492
GO,
2016,
5%,
6/01/33
.............................................
1,275,000
1,459,980
County
of
Muskegon
,
GO,
2015,
Refunding,
5%,
11/01/33
....................................
1,360,000
1,531,281
GO,
2015,
Refunding,
5%,
11/01/36
....................................
1,735,000
1,944,268
Detroit
City
School
District
,
GO
,
2001
A
,
AGMC
Insured
,
6
%
,
5/01/29
............
10,000,000
11,820,390
DeWitt
Public
Schools
,
GO,
2017,
5%,
5/01/30
.............................................
500,000
587,723
GO,
2017,
5%,
5/01/33
.............................................
815,000
953,121
GO,
2017,
5%,
5/01/34
.............................................
1,000,000
1,167,851
GO,
2017,
5%,
5/01/35
.............................................
1,000,000
1,165,691
GO,
2017,
5%,
5/01/36
.............................................
1,000,000
1,164,614
Downriver
Utility
Wastewater
Authority
,
Revenue,
2018,
Refunding,
AGMC
Insured,
5%,
4/01/34
....................
510,000
607,668
Revenue,
2018,
Refunding,
AGMC
Insured,
5%,
4/01/36
....................
1,600,000
1,900,460
Revenue,
2018,
Refunding,
AGMC
Insured,
5%,
4/01/38
....................
1,500,000
1,777,776
Revenue,
2018,
Refunding,
AGMC
Insured,
5%,
4/01/43
....................
3,000,000
3,506,909
East
Lansing
School
District
,
GO,
2017
I,
5%,
5/01/35
.............................................
1,500,000
1,740,470
GO,
2017
I,
5%,
5/01/37
.............................................
1,100,000
1,274,576
GO,
2017
I,
5%,
5/01/42
.............................................
3,500,000
4,031,189
Elk
Rapids
Schools
,
GO
,
2021
I
,
4
%
,
5/01/50
..............................
3,075,000
3,477,015
Farmington
Public
School
District
,
GO,
2015,
Refunding,
AGMC
Insured,
5%,
5/01/27
.........................
1,000,000
1,113,551
GO,
2015,
Refunding,
AGMC
Insured,
5%,
5/01/28
.........................
2,000,000
2,223,151
GO,
2015,
Refunding,
AGMC
Insured,
5%,
5/01/32
.........................
4,035,000
4,467,997
GO,
2015,
Refunding,
AGMC
Insured,
5%,
5/01/33
.........................
2,900,000
3,208,354
GO,
2015,
Refunding,
AGMC
Insured,
5%,
5/01/34
.........................
3,000,000
3,317,026
GO,
2015,
Refunding,
AGMC
Insured,
5%,
5/01/35
.........................
1,000,000
1,105,022
GO,
2018,
BAM
Insured,
4.5%,
5/01/38
.................................
7,225,000
8,270,289
Gerald
R
Ford
International
Airport
Authority
,
Revenue
,
2021
,
5
%
,
1/01/51
.........
2,000,000
2,405,951
Grand
Traverse
County
Hospital
Finance
Authority
,
Munson
Healthcare
Obligated
Group,
Revenue,
2014
A,
5%,
7/01/44
...........
2,000,000
2,153,222
Munson
Healthcare
Obligated
Group,
Revenue,
2014
A,
5%,
7/01/47
...........
2,500,000
2,687,952
Munson
Healthcare
Obligated
Group,
Revenue,
2019
A,
5%,
7/01/44
...........
1,110,000
1,302,323
Munson
Healthcare
Obligated
Group,
Revenue,
2019
B,
5%,
7/01/39
...........
1,625,000
1,919,930
Munson
Healthcare
Obligated
Group,
Revenue,
2021,
Refunding,
3%,
7/01/51
....
10,000,000
9,767,197
Grand
Valley
State
University
,
Revenue,
2016
A,
Refunding,
5%,
12/01/32
..............................
4,295,000
4,846,228
Revenue,
2018,
5%,
12/01/38
........................................
900,000
1,068,751
Revenue,
2018,
5%,
12/01/43
........................................
1,800,000
2,127,780
Grandville
Public
Schools
,
GO,
II,
AGMC
Insured,
5%,
5/01/29
....................................
750,000
831,220
GO,
II,
AGMC
Insured,
5%,
5/01/30
....................................
1,000,000
1,108,293
GO,
II,
AGMC
Insured,
5%,
5/01/31
....................................
1,150,000
1,274,160
GO,
II,
AGMC
Insured,
5%,
5/01/32
....................................
1,165,000
1,290,016
GO,
II,
AGMC
Insured,
5%,
5/01/34
....................................
1,315,000
1,453,533
GO,
II,
AGMC
Insured,
5%,
5/01/35
....................................
1,225,000
1,352,453
GO,
II,
AGMC
Insured,
5%,
5/01/37
....................................
2,915,000
3,210,690
GO,
II,
AGMC
Insured,
5%,
5/01/40
....................................
6,215,000
6,823,243
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Michigan
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
92
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Michigan
(continued)
Gull
Lake
Community
School
District
,
GO
,
2018
I
,
5
%
,
5/01/48
.................
$
5,000,000
$
5,849,264
Holly
Area
School
District
,
GO,
2014,
Refunding,
5%,
5/01/30
.....................................
1,045,000
1,126,784
GO,
2014,
Refunding,
5%,
5/01/32
.....................................
1,040,000
1,121,161
Hudsonville
Public
Schools
,
GO,
2017,
Refunding,
5%,
5/01/37
.....................................
1,550,000
1,804,317
GO,
2017,
Refunding,
5%,
5/01/39
.....................................
2,500,000
2,900,783
GO,
2017,
Refunding,
5%,
5/01/41
.....................................
2,500,000
2,891,414
Kelloggsville
Public
Schools
,
GO,
2015,
Pre-Refunded,
AGMC
Insured,
5%,
5/01/33
......................
1,045,000
1,163,661
GO,
2015,
Pre-Refunded,
AGMC
Insured,
5%,
5/01/35
......................
1,150,000
1,280,583
Kent
Hospital
Finance
Authority
,
Mary
Free
Bed
Rehabilitation
Hospital
Obligated
Group
,
Revenue
,
2021
A
,
3
%
,
4/01/51
..................................
6,010,000
5,608,603
Kentwood
Economic
Development
Corp.
,
Holland
Home
Obligated
Group,
Revenue,
2021,
4%,
11/15/45
................
1,655,000
1,758,941
Holland
Home
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
11/15/31
.......
2,000,000
2,185,135
Holland
Home
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
11/15/43
.......
8,820,000
9,419,186
Kentwood
Public
Schools
,
GO,
2016,
5%,
5/01/35
.............................................
1,205,000
1,365,781
GO,
2016,
5%,
5/01/36
.............................................
1,205,000
1,363,704
GO,
2016,
5%,
5/01/38
.............................................
1,210,000
1,364,683
GO,
2016,
5%,
5/01/41
.............................................
1,120,000
1,255,998
GO,
2016,
5%,
5/01/44
.............................................
1,800,000
2,008,630
L'Anse
Creuse
Public
Schools
,
GO,
2015,
Pre-Refunded,
5%,
5/01/30
..................................
5,560,000
6,191,342
GO,
2015,
Pre-Refunded,
5%,
5/01/32
..................................
5,890,000
6,558,814
GO,
2015,
Pre-Refunded,
5%,
5/01/34
..................................
6,220,000
6,926,285
Lansing
Board
of
Water
&
Light
,
Revenue,
2019
A,
5%,
7/01/48
........................................
10,000,000
11,921,659
Revenue,
2021
A,
5%,
7/01/51
........................................
8,000,000
9,916,796
Lansing
Community
College
,
GO,
2012,
Refunding,
5%,
5/01/32
.....................................
690,000
695,027
GO,
2017,
Refunding,
5%,
5/01/32
.....................................
2,000,000
2,364,320
Lansing
School
District
,
GO,
2016
I,
5%,
5/01/37
.............................................
1,490,000
1,683,676
GO,
2016
I,
5%,
5/01/39
.............................................
2,125,000
2,392,103
GO,
2016
I,
5%,
5/01/40
.............................................
2,200,000
2,471,829
Macomb
Interceptor
Drain
Drainage
District
,
Special
Assessment
,
2017
A
,
Refunding
,
5
%
,
5/01/42
......................................................
7,500,000
8,706,374
b
Madison
District
Public
Schools
,
GO
,
2022
,
4
%
,
5/01/46
......................
1,080,000
1,225,227
Mason
County
Central
School
District
,
GO
,
2014
,
Refunding
,
5
%
,
5/01/26
.........
1,100,000
1,226,357
Mattawan
Consolidated
School
District
,
GO,
2015
I,
Pre-Refunded,
5%,
5/01/30
.................................
1,000,000
1,113,551
GO,
2015
I,
Pre-Refunded,
5%,
5/01/31
.................................
1,915,000
2,132,450
GO,
2015
I,
Pre-Refunded,
5%,
5/01/32
.................................
1,110,000
1,236,041
GO,
2015
I,
Pre-Refunded,
5%,
5/01/34
.................................
2,325,000
2,589,005
GO,
2015
I,
Pre-Refunded,
5%,
5/01/39
.................................
3,375,000
3,758,234
Meridian
Public
School
District
,
GO,
2015,
Refunding,
5%,
5/01/27
.....................................
735,000
820,643
GO,
2015,
Refunding,
5%,
5/01/29
.....................................
775,000
862,236
GO,
2015,
Refunding,
5%,
5/01/31
.....................................
1,130,000
1,256,824
Michigan
Finance
Authority
,
Albion
College,
Revenue,
2022,
Refunding,
4%,
12/01/41
....................
2,375,000
2,553,094
Albion
College,
Revenue,
2022,
Refunding,
4%,
12/01/46
....................
3,245,000
3,446,499
Albion
College,
Revenue,
2022,
Refunding,
4%,
12/01/51
....................
3,415,000
3,609,335
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Michigan
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
93
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Michigan
(continued)
Michigan
Finance
Authority,
(continued)
Beaumont
Health
Obligated
Group,
Revenue,
2012,
Refunding,
AGMC
Insured,
5%,
11/01/32
.......................................................
$
10,005,000
$
10,280,546
Beaumont
Health
Obligated
Group,
Revenue,
2012,
Refunding,
AGMC
Insured,
5%,
11/01/42
.......................................................
12,000,000
12,308,556
Beaumont
Health
Obligated
Group,
Revenue,
2013,
Refunding,
5%,
8/15/28
.....
5,585,000
5,900,800
Beaumont
Health
Obligated
Group,
Revenue,
2013,
Refunding,
5%,
8/15/29
.....
5,865,000
6,195,757
Calvin
University
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
9/01/46
......
1,750,000
1,911,683
Calvin
University
Obligated
Group,
Revenue,
2021,
Refunding,
3%,
9/01/50
......
895,000
861,412
Calvin
University
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
9/01/50
......
1,300,000
1,414,393
Clean
Water
Revolving
Fund,
Revenue,
2016
B,
Refunding,
4%,
10/01/30
.......
2,750,000
3,056,742
Clean
Water
Revolving
Fund,
Revenue,
2018
B,
Refunding,
5%,
10/01/38
.......
8,055,000
9,751,417
County
of
Wayne,
Revenue,
Second
Lien,
2020,
Refunding,
4%,
11/01/50
.......
4,000,000
4,467,406
County
of
Wayne,
Revenue,
Second
Lien,
2020,
Refunding,
BAM
Insured,
4%,
11/01/55
.......................................................
11,000,000
12,294,595
Henry
Ford
Health
System
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
11/15/32
.......................................................
2,725,000
3,117,807
Henry
Ford
Health
System
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
11/15/37
.......................................................
4,235,000
4,829,040
Henry
Ford
Health
System
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
11/15/41
.......................................................
22,015,000
24,933,212
Kalamazoo
College,
Revenue,
2018,
Refunding,
4%,
12/01/47
................
2,610,000
2,863,841
Kettering
University,
Revenue,
2020,
Refunding,
4%,
9/01/35
.................
400,000
441,267
Kettering
University,
Revenue,
2020,
Refunding,
4%,
9/01/36
.................
565,000
622,667
Kettering
University,
Revenue,
2020,
Refunding,
4%,
9/01/37
.................
640,000
704,444
Kettering
University,
Revenue,
2020,
Refunding,
4%,
9/01/38
.................
675,000
741,632
Kettering
University,
Revenue,
2020,
Refunding,
4%,
9/01/39
.................
645,000
707,423
Kettering
University,
Revenue,
2020,
Refunding,
4%,
9/01/45
.................
3,780,000
4,101,952
Kettering
University,
Revenue,
2020,
Refunding,
4%,
9/01/50
.................
3,000,000
3,238,090
Lawrence
Technological
University
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
2/01/42
........................................................
745,000
790,085
Michigan
Finance
Authority
Clean
Water
Revolving
Fund,
Revenue,
2018
B,
Refunding,
5%,
10/01/39
...........................................
6,000,000
7,248,819
Sparrow
Health
Obligated
Group,
Revenue,
2012,
AGMC
Insured,
5%,
11/15/42
..
8,000,000
8,212,150
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
A-2,
Refunding,
5%,
6/01/40
....
1,000,000
1,185,880
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
A,
1,
Refunding,
4%,
6/01/49
...
17,170,000
18,509,196
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
B-1,
2,
Refunding,
5%,
6/01/49
..
2,750,000
3,129,437
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2016
MI,
Pre-Refunded,
5%,
12/01/45
.......................................................
290,000
332,332
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2016
MI,
5%,
12/01/45
.........
19,710,000
22,162,306
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2022
MI-A,
4%,
12/01/47
........
2,500,000
2,790,881
Michigan
State
Building
Authority
,
Revenue,
2013
A-1,
Refunding,
5%,
10/15/33
.............................
5,000,000
5,295,032
Revenue,
2013
A-1,
Refunding,
5.25%,
10/15/47
..........................
5,000,000
5,302,529
Revenue,
2016
I,
Refunding,
5%,
4/15/41
................................
13,000,000
14,666,504
Revenue,
2016
I,
Refunding,
5%,
10/15/46
...............................
9,910,000
11,087,597
Revenue,
2016
I,
Refunding,
5%,
10/15/51
...............................
1,000,000
1,113,718
Revenue,
2019
I,
Refunding,
4%,
10/15/49
...............................
2,500,000
2,795,036
Revenue,
2021,
4%,
10/15/46
........................................
5,000,000
5,664,568
Revenue,
2021,
3%,
10/15/51
........................................
2,500,000
2,427,310
Revenue,
2021,
4%,
10/15/56
........................................
2,500,000
2,829,871
Michigan
State
Hospital
Finance
Authority
,
Ascension
Health
Credit
Group,
Revenue,
1999
B-3,
4%,
11/15/32
.............
5,000,000
5,625,344
Ascension
Health
Credit
Group,
Revenue,
1999
B-3,
4%,
11/15/33
.............
5,370,000
6,030,461
Ascension
Health
Credit
Group,
Revenue,
2010
F-7,
Refunding,
5%,
11/15/47
....
10,000,000
11,383,351
Ascension
Health
Credit
Group,
Revenue,
2010
F-8,
Refunding,
5%,
11/15/46
....
5,000,000
5,696,509
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Michigan
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
94
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Michigan
(continued)
Michigan
State
Hospital
Finance
Authority,
(continued)
McLaren
Health
Care
Corp.
Obligated
Group,
Revenue,
2012
A,
Refunding,
5%,
6/01/26
........................................................
$
2,065,000
$
2,087,086
McLaren
Health
Care
Corp.
Obligated
Group,
Revenue,
2012
A,
Refunding,
5%,
6/01/27
........................................................
2,285,000
2,309,439
McLaren
Health
Care
Corp.
Obligated
Group,
Revenue,
2012
A,
Refunding,
5%,
6/01/28
........................................................
2,615,000
2,642,903
McLaren
Health
Care
Corp.
Obligated
Group,
Revenue,
2012
A,
Refunding,
5%,
6/01/35
........................................................
2,250,000
2,273,270
Michigan
State
Housing
Development
Authority
,
Revenue,
2019
B,
3.1%,
12/01/44
.....................................
15,000,000
15,232,324
Revenue,
2020
A,
2.8%,
12/01/45
.....................................
4,350,000
4,332,151
Revenue,
2020
A,
2.85%,
6/01/50
.....................................
5,150,000
5,049,917
Revenue,
2021
A,
2.5%,
6/01/52
......................................
3,000,000
2,636,616
Revenue,
2021
A,
2.7%,
10/01/56
.....................................
5,000,000
4,410,748
Revenue,
2021
A,
2.73%,
10/01/59
....................................
5,000,000
4,416,671
Michigan
State
University
,
Revenue
,
2015
A
,
5
%
,
8/15/40
.....................
8,500,000
9,405,717
Michigan
Strategic
Fund
,
State
of
Michigan
Department
of
Transportation,
Revenue,
2018,
5%,
6/30/30
....
2,000,000
2,298,791
State
of
Michigan
Department
of
Transportation,
Revenue,
2018,
5%,
12/31/43
...
7,000,000
7,894,707
Michigan
Technological
University
,
Revenue
,
2015
A
,
5
%
,
10/01/45
..............
2,400,000
2,651,816
Oakland
School
District
,
GO,
2016,
Refunding,
5%,
5/01/35
.....................................
1,500,000
1,701,436
GO,
2016,
Refunding,
5%,
5/01/36
.....................................
1,005,000
1,137,796
Oakland
University
,
Revenue,
2014,
Refunding,
5%,
3/01/31
.................................
1,260,000
1,345,885
Revenue,
2014,
Refunding,
5%,
3/01/32
.................................
1,000,000
1,067,142
Revenue,
2014,
Refunding,
5%,
3/01/33
.................................
1,285,000
1,370,228
Revenue,
2014,
Refunding,
5%,
3/01/34
.................................
1,000,000
1,065,510
Revenue,
2014,
Refunding,
5%,
3/01/39
.................................
3,000,000
3,187,986
Revenue,
2016,
5%,
3/01/47
.........................................
7,230,000
8,094,840
Revenue,
2019,
5%,
3/01/50
.........................................
3,500,000
4,151,855
Rochester
Community
School
District
,
GO
,
2016
I
,
5
%
,
5/01/36
.................
2,800,000
3,169,978
Roseville
Community
Schools
,
GO,
2014,
Pre-Refunded,
5%,
5/01/27
..................................
1,370,000
1,525,565
GO,
2014,
Pre-Refunded,
5%,
5/01/28
..................................
3,040,000
3,385,194
GO,
2014,
Pre-Refunded,
5%,
5/01/29
..................................
3,300,000
3,674,717
GO,
2014,
Pre-Refunded,
5%,
5/01/30
..................................
1,620,000
1,803,952
GO,
2014,
Pre-Refunded,
5%,
5/01/31
..................................
1,585,000
1,764,978
Royal
Oak
Hospital
Finance
Authority
,
Beaumont
Health
Obligated
Group,
Revenue,
2014
D,
Refunding,
5%,
9/01/27
....
3,350,000
3,575,607
Beaumont
Health
Obligated
Group,
Revenue,
2014
D,
Refunding,
5%,
9/01/28
....
2,500,000
2,666,833
Beaumont
Health
Obligated
Group,
Revenue,
2014
D,
Refunding,
5%,
9/01/39
....
17,500,000
18,578,830
Saginaw
Valley
State
University
,
Revenue,
2016
A,
Refunding,
5%,
7/01/30
...............................
1,750,000
1,992,558
Revenue,
2016
A,
Refunding,
5%,
7/01/31
...............................
2,170,000
2,470,772
Revenue,
2016
A,
Refunding,
5%,
7/01/33
...............................
1,240,000
1,407,423
Saline
Area
Schools
,
GO,
2016,
5%,
5/01/34
.............................................
2,750,000
3,124,054
GO,
2016,
5%,
5/01/36
.............................................
2,950,000
3,339,798
South
Haven
Public
Schools
,
GO,
2015
B,
AGMC
Insured,
5%,
5/01/33
................................
350,000
387,329
GO,
2015
B,
AGMC
Insured,
5%,
5/01/35
................................
1,575,000
1,738,868
Sparta
Area
Schools
,
GO
,
II
,
5
%
,
5/01/48
.................................
5,750,000
6,672,459
Trenton
Public
Schools
School
District
,
GO,
2018,
5%,
5/01/42
.............................................
4,920,000
5,787,502
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Michigan
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
95
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Michigan
(continued)
Trenton
Public
Schools
School
District,
(continued)
GO,
2018,
5%,
5/01/45
.............................................
$
11,480,000
$
13,363,562
Universal
Academy
,
Revenue,
2021,
Refunding,
2%,
12/01/26
................................
500,000
481,461
Revenue,
2021,
Refunding,
4%,
12/01/31
................................
500,000
538,897
Revenue,
2021,
Refunding,
4%,
12/01/40
................................
1,100,000
1,167,462
University
of
Michigan
,
Revenue,
2015,
Refunding,
5%,
4/01/46
.................................
2,000,000
2,261,266
Revenue,
2017
A,
Refunding,
5%,
4/01/37
...............................
2,700,000
3,156,623
Revenue,
2017
A,
Refunding,
5%,
4/01/42
...............................
26,635,000
31,093,664
Revenue,
2017
A,
Refunding,
5%,
4/01/47
...............................
5,000,000
5,818,836
Wayne
County
Airport
Authority
,
Revenue,
2021
A,
5%,
12/01/40
.......................................
3,330,000
4,123,462
Revenue,
2021
A,
5%,
12/01/41
.......................................
4,670,000
5,773,433
Revenue,
2021
B,
5%,
12/01/46
.......................................
2,000,000
2,391,629
Detroit
Metropolitan
Wayne
County
Airport,
Revenue,
2017
B,
5%,
12/01/42
......
1,045,000
1,192,438
Detroit
Metropolitan
Wayne
County
Airport,
Revenue,
2018
A,
5%,
12/01/43
......
7,750,000
9,118,596
Wayne
State
University
,
Revenue,
2015
A,
Refunding,
5%,
11/15/33
..............................
1,500,000
1,639,237
Revenue,
2018
A,
5%,
11/15/43
.......................................
4,500,000
5,277,550
Revenue,
2018
A,
4%,
11/15/48
.......................................
10,000,000
11,016,238
Western
Michigan
University
,
Revenue,
2015
A,
Refunding,
5%,
11/15/28
..............................
1,635,000
1,801,607
Revenue,
2015
A,
Refunding,
5%,
11/15/29
..............................
2,000,000
2,200,513
Revenue,
2015
A,
Refunding,
5%,
11/15/30
..............................
2,500,000
2,744,900
Revenue,
2015
A,
Refunding,
5%,
11/15/40
..............................
1,560,000
1,712,818
Revenue,
2015
A,
Refunding,
5%,
11/15/45
..............................
2,000,000
2,195,920
Revenue,
2019
A,
Refunding,
5%,
11/15/49
..............................
5,100,000
6,042,203
Zeeland
Public
Schools
,
GO,
2015
A,
AGMC
Insured,
5%,
5/01/31
................................
1,530,000
1,694,185
GO,
2015
A,
AGMC
Insured,
5%,
5/01/33
................................
2,000,000
2,210,697
GO,
2015
A,
Pre-Refunded,
AGMC
Insured,
5%,
5/01/35
....................
2,000,000
2,230,400
855,054,364
New
Jersey
0.1%
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue,
2019
BB,
4%,
6/15/50
.......................................
500,000
531,107
Revenue,
2020
AA,
3%,
6/15/50
.......................................
600,000
558,845
1,089,952
New
York
1.1%
Metropolitan
Transportation
Authority
,
Revenue,
2020
A-1,
4%,
11/15/53
.....................................
1,000,000
1,065,570
Revenue,
2020
E,
Refunding,
4%,
11/15/45
..............................
1,595,000
1,719,017
Revenue,
2021
A-2,
4%,
11/15/42
.....................................
6,700,000
7,291,315
10,075,902
South
Carolina
0.5%
South
Carolina
Jobs-Economic
Development
Authority
,
a
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
1,800,000
1,684,351
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
1,800,000
1,682,471
a
South
Carolina
State
Housing
Finance
&
Development
Authority
,
Garden
Oaks
LP
,
Revenue
,
144A,
2021
A
,
4.2
%
,
12/01/39
................................
1,000,000
931,070
4,297,892
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Michigan
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
96
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Texas
0.7%
a
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
$
2,400,000
$
2,226,440
Lake
Houston
Redevelopment
Authority
,
City
of
Houston
Reinvestment
Zone
No.
10,
Revenue,
2021,
Refunding,
3%,
9/01/39
325,000
316,379
City
of
Houston
Reinvestment
Zone
No.
10,
Revenue,
2021,
Refunding,
3%,
9/01/40
300,000
291,594
City
of
Houston
Reinvestment
Zone
No.
10,
Revenue,
2021,
Refunding,
3%,
9/01/47
550,000
516,442
a
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
A-2
,
5
%
,
12/01/52
............
3,500,000
3,511,287
6,862,142
Washington
0.2%
a
Washington
State
Housing
Finance
Commission
,
Madison
at
Rivers
Edge
Apartments
LLC
,
Revenue
,
144A,
2021
A
,
3.65
%
,
1/01/37
............................
1,800,000
1,683,889
Wisconsin
0.9%
a
Public
Finance
Authority
,
Revenue,
144A,
2022,
B-1,
4%,
12/28/44
................................
1,800,000
1,734,326
Affordable
Housing
Preservation
Corp.
(The),
Revenue,
144A,
2021,
5.25%,
12/01/22
.......................................................
6,300,000
6,271,015
8,005,341
U.S.
Territories
2.1%
Guam
0.2%
Guam
Government
Waterworks
Authority
,
Revenue
,
2020
A
,
5
%
,
1/01/50
.........
1,750,000
2,045,318
Puerto
Rico
1.9%
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue,
2007
N,
Refunding,
AGMC
Insured,
5.25%,
7/01/34
................
7,420,000
7,774,059
Revenue,
2007
N,
Refunding,
AGMC
Insured,
5.25%,
7/01/36
................
500,000
522,440
Revenue,
CC,
Refunding,
AGMC
Insured,
5.25%,
7/01/32
...................
2,100,000
2,200,149
Revenue,
CC,
Refunding,
AGMC
Insured,
5.25%,
7/01/36
...................
1,515,000
1,582,990
Revenue,
L,
Refunding,
NATL
Insured,
5.25%,
7/01/35
......................
1,020,000
1,079,104
Revenue,
L,
Refunding,
AGMC
Insured,
5.25%,
7/01/41
.....................
3,900,000
4,057,132
17,215,874
Total
U.S.
Territories
....................................................................
19,261,192
Total
Municipal
Bonds
(Cost
$891,715,704)
.....................................
919,575,476
a
a
a
a
Short
Term
Investments
0.1%
Municipal
Bonds
0.1%
Michigan
0.1%
c
Michigan
Strategic
Fund
,
Edison
Institute
(The)
,
Revenue
,
2002
,
LOC
Comerica
Bank
,
Daily
VRDN
and
Put
,
0.1
%
,
12/01/33
...................................
500,000
500,000
Total
Municipal
Bonds
(Cost
$500,000)
.........................................
500,000
Total
Short
Term
Investments
(Cost
$500,000
)
..................................
500,000
a
Total
Investments
(Cost
$892,215,704)
99.5%
...................................
$920,075,476
Other
Assets,
less
Liabilities
0.5%
.............................................
5,110,621
Net
Assets
100.0%
...........................................................
$925,186,097
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Michigan
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
97
See
Abbreviations
on
page
176
.
a
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
February
28,
2022,
the
aggregate
value
of
these
securities
was
$18,848,028,
representing
2.0%
of
net
assets.
b
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).
c
Variable
rate
demand
notes
(VRDNs)
are
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.
Unless
otherwise
noted,
the
coupon
rate
is
determined
based
on
factors
including
supply
and
demand,
underlying
credit,
tax
treatment,
and
current
short
term
rates.
The
coupon
rate
shown
represents
the
rate
at
period
end.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Minnesota
Tax-Free
Income
Fund
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
98
a
Year
Ended
February
28,
Year
Ended
February
28,
2019
b
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
................................
$12.62
$12.82
$12.10
$11.97
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.23
0.25
0.30
0.16
Net
realized
and
unrealized
gains
(losses)
........................
(0.42)
(0.20)
0.72
0.13
Total
from
investment
operations
.................................
(0.19)
0.05
1.02
0.29
Less
distributions
from:
Net
investment
income
.......................................
(0.23)
(0.25)
(0.30)
(0.16)
Net
asset
value,
end
of
year
....................................
$12.20
$12.62
$12.82
$12.10
Total
return
e
................................................
(1.59)%
0.38%
8.56%
2.45%
Ratios
to
average
net
assets
f
Expenses
g
.................................................
0.83%
0.83%
0.83%
0.83%
Net
investment
income
........................................
1.79%
1.96%
2.42%
2.81%
Supplemental
data
Net
assets,
end
of
year
(000’s)
..................................
$193,021
$160,623
$96,802
$39,129
Portfolio
turnover
rate
.........................................
19.81%
9.45%
16.45%
13.97%
a
For
the
year
ended
February
29.
b
For
the
period
September
10,
2018
(effective
date)
to
February
28,
2019.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Minnesota
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
99
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$12.61
$12.82
$12.09
$12.07
$12.27
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.25
0.27
0.32
0.35
0.35
Net
realized
and
unrealized
gains
(losses)
...........
(0.42)
(0.21)
0.73
0.02
(0.20)
Total
from
investment
operations
....................
(0.17)
0.06
1.05
0.37
0.15
Less
distributions
from:
Net
investment
income
..........................
(0.25)
(0.27)
(0.32)
(0.35)
(0.35)
Net
asset
value,
end
of
year
.......................
$12.19
$12.61
$12.82
$12.09
$12.07
Total
return
d
...................................
(1.44)%
0.45%
8.82%
3.16%
1.23%
Ratios
to
average
net
assets
Expenses
.....................................
0.69%
e
0.68%
e
0.68%
e
0.68%
e
0.66%
Net
investment
income
...........................
1.94%
2.13%
2.57%
2.96%
2.87%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$506,601
$583,105
$606,559
$588,878
$657,415
Portfolio
turnover
rate
............................
19.81%
9.45%
16.45%
13.97%
13.77%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Minnesota
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
100
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$12.76
$12.97
$12.23
$12.21
$12.40
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.17
0.20
0.25
0.29
0.29
Net
realized
and
unrealized
gains
(losses)
...........
(0.43)
(0.21)
0.75
0.02
(0.20)
Total
from
investment
operations
....................
(0.26)
(0.01)
1.00
0.31
0.09
Less
distributions
from:
Net
investment
income
..........................
(0.17)
(0.20)
(0.26)
(0.29)
(0.28)
Net
asset
value,
end
of
year
.......................
$12.33
$12.76
$12.97
$12.23
$12.21
Total
return
d
...................................
(2.05)%
(0.10)%
8.23%
2.56%
0.74%
Ratios
to
average
net
assets
Expenses
.....................................
1.23%
e
1.23%
e
1.23%
e
1.23%
e
1.21%
Net
investment
income
...........................
1.36%
1.57%
2.02%
2.41%
2.32%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$81,058
$109,387
$138,417
$148,269
$203,925
Portfolio
turnover
rate
............................
19.81%
9.45%
16.45%
13.97%
13.77%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Minnesota
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
101
a
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2022
2021
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$12.64
$12.84
$12.11
$12.09
$12.40
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.27
0.29
0.34
0.37
0.22
Net
realized
and
unrealized
gains
(losses)
...........
(0.43)
(0.20)
0.73
0.02
(0.32)
Total
from
investment
operations
....................
(0.16)
0.09
1.07
0.39
(0.10)
Less
distributions
from:
Net
investment
income
..........................
(0.27)
(0.29)
(0.34)
(0.37)
(0.21)
Net
asset
value,
end
of
year
.......................
$12.21
$12.64
$12.84
$12.11
$12.09
Total
return
e
...................................
(1.28)%
0.60%
8.97%
3.30%
(0.80)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
......
0.54%
0.55%
0.55%
0.56%
0.54%
Expenses
net
of
waiver
and
payments
by
affiliates
.......
0.53%
g
0.53%
g
0.53%
g
0.53%
g
0.51%
Net
investment
income
...........................
2.10%
2.26%
2.72%
3.11%
3.02%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$16,571
$13,889
$9,693
$7,177
$8,342
Portfolio
turnover
rate
............................
19.81%
9.45%
16.45%
13.97%
13.77%
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Minnesota
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
102
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$12.63
$12.83
$12.11
$12.09
$12.28
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.26
0.28
0.33
0.37
0.37
Net
realized
and
unrealized
gains
(losses)
...........
(0.42)
(0.20)
0.73
0.02
(0.19)
Total
from
investment
operations
....................
(0.16)
0.08
1.06
0.39
0.18
Less
distributions
from:
Net
investment
income
..........................
(0.26)
(0.28)
(0.34)
(0.37)
(0.37)
Net
asset
value,
end
of
year
.......................
$12.21
$12.63
$12.83
$12.11
$12.09
Total
return
....................................
(1.34)%
0.63%
8.83%
3.26%
1.41%
Ratios
to
average
net
assets
Expenses
.....................................
0.58%
d
0.58%
d
0.58%
d
0.58%
d
0.56%
Net
investment
income
...........................
2.04%
2.22%
2.67%
3.06%
2.97%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$266,255
$244,156
$203,230
$156,683
$160,199
Portfolio
turnover
rate
............................
19.81%
9.45%
16.45%
13.97%
13.77%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments,
February
28,
2022
Franklin
Minnesota
Tax-Free
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
103
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
96.2%
Florida
0.7%
Capital
Trust
Agency,
Inc.
,
Kingdom
Development
Obligated
Group,
Revenue,
2021
A-1,
3.75%,
12/01/36
....
$
6,192,000
$
6,074,662
a
SHI
-
Lake
Osborne
LLC,
Revenue,
144A,
2021
A-1,
3.68%,
1/01/57
...........
2,100,000
1,879,851
7,954,513
Minnesota
91.8%
Alexandria
Independent
School
District
No.
206
,
GO
,
2017
A
,
Refunding
,
3
%
,
2/01/37
29,905,000
30,993,079
Anoka-Hennepin
Independent
School
District
No.
11
,
GO,
2018
A,
3.25%,
2/01/37
..........................................
5,355,000
5,649,383
GO,
2018
A,
3.375%,
2/01/43
.........................................
6,020,000
6,255,949
Becker
Independent
School
District
No.
726
,
GO,
2022
A,
Zero
Cpn
.,
2/01/41
.......................................
1,000,000
586,302
GO,
2022
A,
Zero
Cpn
.,
2/01/42
.......................................
1,000,000
565,601
GO,
2022
A,
Zero
Cpn
.,
2/01/43
.......................................
1,700,000
928,472
Blooming
Prairie
Independent
School
District
No.
756
,
GO
,
2022
A
,
Refunding
,
2.25
%
,
2/01/45
.........................................................
1,500,000
1,312,197
Brainerd
Independent
School
District
No.
181
,
GO,
2018
A,
4%,
2/01/32
............................................
3,065,000
3,389,614
GO,
2018
A,
4%,
2/01/39
............................................
10,600,000
11,596,962
GO,
2018
A,
4%,
2/01/42
............................................
1,900,000
2,069,397
GO,
2018
C,
Refunding,
5%,
2/01/28
...................................
3,735,000
4,247,766
Centennial
Independent
School
District
No.
12
,
GO,
2015
A,
Refunding,
Zero
Cpn
.,
2/01/32
..............................
1,450,000
1,066,068
GO,
2015
A,
Refunding,
Zero
Cpn
.,
2/01/34
..............................
1,600,000
1,077,744
GO,
2015
A,
Refunding,
Zero
Cpn
.,
2/01/35
..............................
350,000
225,781
City
of
Center
City
,
Hazelden
Betty
Ford
Foundation
,
Revenue
,
2019
,
Refunding
,
4
%
,
11/01/41
........................................................
1,000,000
1,089,431
City
of
Elk
River
,
Electric
,
Revenue
,
2021
B
,
2.25
%
,
8/01/47
...................
1,475,000
1,266,830
City
of
Fridley
,
Fridley
Leased
Housing
Associates
I
LLLP
,
Revenue
,
2018
,
FNMA
Insured
,
3.75
%
,
11/01/34
............................................
9,624,889
10,405,851
City
of
Minneapolis
,
GO,
2018,
4%,
12/01/43
.............................................
5,000,000
5,481,026
GO,
2018,
4%,
12/01/46
.............................................
3,500,000
3,823,388
GO,
2019,
3%,
12/01/40
.............................................
5,000,000
5,181,123
14th
and
Central
LLLP,
Revenue,
2020,
FNMA
Insured,
2.35%,
2/01/38
.........
10,000,000
9,664,368
Allina
Health
Obligated
Group,
Revenue,
2021,
4%,
11/15/38
.................
6,405,000
7,362,776
Fairview
Health
Services
Obligated
Group,
Revenue,
2015
A,
Refunding,
AGMC
Insured,
5%,
11/15/44
.............................................
10,000,000
11,133,496
Fairview
Health
Services
Obligated
Group,
Revenue,
2018
A,
Refunding,
AGMC
Insured,
5%,
11/15/49
.............................................
6,000,000
7,065,139
City
of
Minneapolis
St.
Paul
Housing
&
Redevelopment
Authority
,
Allina
Health
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
11/15/26
.......
2,000,000
2,315,704
Allina
Health
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
11/15/27
.......
2,000,000
2,333,414
City
of
Plymouth
,
GO,
2020
A,
2%,
2/01/31
............................................
1,790,000
1,766,911
GO,
2020
A,
2%,
2/01/32
............................................
2,080,000
2,035,285
GO,
2020
A,
2%,
2/01/33
............................................
2,125,000
2,038,465
City
of
Rochester
,
Electric
Utility,
Revenue,
2013
B,
Pre-Refunded,
5%,
12/01/43
................
1,000,000
1,067,626
Electric
Utility,
Revenue,
2017
A,
Refunding,
5%,
12/01/42
...................
2,000,000
2,276,013
Electric
Utility,
Revenue,
2017
A,
Refunding,
5%,
12/01/47
...................
9,210,000
10,400,680
Mayo
Clinic,
Revenue,
2016
B,
Refunding,
5%,
11/15/33
....................
4,425,000
5,875,134
Mayo
Clinic,
Revenue,
2016
B,
Refunding,
5%,
11/15/34
....................
10,235,000
13,808,884
Mayo
Clinic,
Revenue,
2016
B,
Refunding,
5%,
11/15/35
....................
5,000,000
6,849,393
Mayo
Clinic,
Revenue,
2016
B,
Refunding,
5%,
11/15/36
....................
4,200,000
5,841,735
Mayo
Clinic,
Revenue,
2018,
4%,
11/15/48
...............................
6,000,000
6,549,356
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Minnesota
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
104
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Minnesota
(continued)
City
of
St.
Cloud
,
CentraCare
Health
System
Obligated
Group,
Revenue,
2016
A,
Refunding,
4%,
5/01/37
........................................................
$
12,310,000
$
13,273,815
CentraCare
Health
System
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
5/01/46
........................................................
4,650,000
5,210,675
City
of
St.
Paul
,
Sales
&
Use
Tax,
Revenue,
2014
G,
5%,
11/01/31
.........................
1,000,000
1,088,067
Sales
&
Use
Tax,
Revenue,
2014
G,
5%,
11/01/32
.........................
1,000,000
1,087,793
City
of
Virginia
,
GO,
2020
A,
AGMC
Insured,
4%,
2/01/36
................................
1,000,000
1,101,618
GO,
2020
A,
AGMC
Insured,
4%,
2/01/40
................................
1,160,000
1,270,999
Cloquet
Independent
School
District
No.
94
,
GO
,
2015
B
,
5
%
,
2/01/32
............
3,615,000
3,982,699
County
of
Hennepin
,
GO,
2019
B,
5%,
12/15/34
...........................................
1,055,000
1,284,371
GO,
2019
B,
5%,
12/15/36
...........................................
12,680,000
15,428,764
GO,
2020
A-2,
5%,
12/01/35
.........................................
1,390,000
1,750,003
GO,
2021
A,
5%,
12/01/32
...........................................
4,640,000
6,002,067
GO,
2021
A,
5%,
12/01/35
...........................................
5,675,000
7,298,725
Dakota
County
Community
Development
Agency
,
Revenue
,
2011
A
,
GNMA
Insured
,
4.875
%
,
12/01/33
..................................................
460,000
460,438
Dawson-Boyd
Independent
School
District
No.
378
,
GO
,
2019
A
,
3.125
%
,
2/01/40
...
2,965,000
3,092,493
Dilworth
Glyndon
Felton
Independent
School
District
No.
2164
,
GO,
2020
A,
3%,
2/01/37
............................................
1,000,000
1,038,702
GO,
2020
A,
3%,
2/01/39
............................................
1,000,000
1,032,907
GO,
2020
A,
3%,
2/01/41
............................................
1,225,000
1,258,659
Duluth
Economic
Development
Authority
,
Essentia
Health
Obligated
Group,
Revenue,
2018
A,
Refunding,
5.25%,
2/15/53
...
15,900,000
18,628,895
Essentia
Health
Obligated
Group,
Revenue,
2018
A,
Refunding,
5.25%,
2/15/58
...
13,035,000
15,248,365
St.
Luke's
Hospital
of
Duluth
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
6/15/38
........................................................
150,000
167,306
St.
Luke's
Hospital
of
Duluth
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
6/15/39
........................................................
155,000
172,402
St.
Luke's
Hospital
of
Duluth
Obligated
Group,
Revenue,
2021
A,
Refunding,
3%,
6/15/44
........................................................
850,000
824,933
b
St.
Luke's
Hospital
of
Duluth
Obligated
Group,
Revenue,
2022
A,
Refunding,
5%,
6/15/29
........................................................
400,000
467,689
b
St.
Luke's
Hospital
of
Duluth
Obligated
Group,
Revenue,
2022
A,
Refunding,
5%,
6/15/30
........................................................
425,000
503,838
b
St.
Luke's
Hospital
of
Duluth
Obligated
Group,
Revenue,
2022
A,
Refunding,
5%,
6/15/31
........................................................
450,000
540,547
b
St.
Luke's
Hospital
of
Duluth
Obligated
Group,
Revenue,
2022
A,
Refunding,
5%,
6/15/32
........................................................
500,000
608,820
b
St.
Luke's
Hospital
of
Duluth
Obligated
Group,
Revenue,
2022
A,
Refunding,
5%,
6/15/33
........................................................
600,000
729,740
b
St.
Luke's
Hospital
of
Duluth
Obligated
Group,
Revenue,
2022
A,
Refunding,
4%,
6/15/34
........................................................
520,000
579,273
b
St.
Luke's
Hospital
of
Duluth
Obligated
Group,
Revenue,
2022
A,
Refunding,
4%,
6/15/35
........................................................
425,000
472,847
b
St.
Luke's
Hospital
of
Duluth
Obligated
Group,
Revenue,
2022
A,
Refunding,
4%,
6/15/36
........................................................
400,000
444,515
b
St.
Luke's
Hospital
of
Duluth
Obligated
Group,
Revenue,
2022
A,
Refunding,
4%,
6/15/37
........................................................
375,000
416,326
b
St.
Luke's
Hospital
of
Duluth
Obligated
Group,
Revenue,
2022
A,
Refunding,
4%,
6/15/38
........................................................
400,000
443,096
b
St.
Luke's
Hospital
of
Duluth
Obligated
Group,
Revenue,
2022
A,
Refunding,
4%,
6/15/39
........................................................
250,000
276,335
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Minnesota
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
105
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Minnesota
(continued)
Duluth
Independent
School
District
No.
709
,
COP,
2016
A,
Refunding,
5%,
2/01/25
..................................
$
1,015,000
$
1,116,405
COP,
2016
A,
Refunding,
5%,
2/01/26
..................................
2,740,000
3,097,153
COP,
2016
A,
Refunding,
4%,
2/01/27
..................................
3,750,000
4,095,459
COP,
2016
A,
Refunding,
4%,
2/01/28
..................................
1,500,000
1,635,199
GO,
2015
B,
Refunding,
4%,
2/01/25
...................................
3,450,000
3,696,655
GO,
2015
B,
Refunding,
2.5%,
2/01/26
..................................
2,840,000
2,901,532
GO,
2021
C,
Zero
Cpn
.,
2/01/29
.......................................
1,870,000
1,578,131
GO,
2021
C,
Zero
Cpn
.,
2/01/30
.......................................
1,275,000
1,044,476
GO,
2021
C,
Zero
Cpn
.,
2/01/31
.......................................
1,325,000
1,053,484
GO,
2021
C,
Zero
Cpn
.,
2/01/32
.......................................
1,080,000
832,282
GO,
2021
C,
Zero
Cpn
.,
2/01/33
.......................................
1,075,000
801,295
Edina
Independent
School
District
No.
273
,
GO
,
2019
A
,
3
%
,
2/01/36
............
1,630,000
1,701,232
Elk
River
Independent
School
District
No.
728
,
GO
,
2015
A
,
4
%
,
2/01/32
..........
6,130,000
6,434,709
Farmington
Independent
School
District
No.
192
,
GO
,
2016
A
,
4
%
,
2/01/28
........
3,830,000
4,207,319
Fridley
Independent
School
District
No.
14
,
GO
,
2016
A
,
4
%
,
2/01/29
............
2,220,000
2,434,261
Hastings
Independent
School
District
No.
200
,
GO,
2018
A,
Zero
Cpn
.,
2/01/38
.......................................
4,685,000
2,769,746
GO,
2018
A,
Zero
Cpn
.,
2/01/39
.......................................
4,685,000
2,652,084
GO,
2018
A,
Zero
Cpn
.,
2/01/40
.......................................
4,685,000
2,538,427
Hennepin
County
Regional
Railroad
Authority
,
GO,
2019
A,
5%,
12/01/35
...........................................
4,480,000
5,419,181
GO,
2019
A,
5%,
12/01/36
...........................................
5,220,000
6,308,588
Hermantown
Independent
School
District
No.
700
,
GO
,
2014
A
,
Pre-Refunded
,
4
%
,
2/01/29
.........................................................
2,310,000
2,430,219
Hopkins
Independent
School
District
No.
270
,
GO,
2019
A,
3%,
2/01/33
............................................
5,640,000
5,860,033
GO,
2019
A,
3%,
2/01/34
............................................
2,450,000
2,544,073
Jordan
Independent
School
District
No.
717
,
GO,
2014
A,
Refunding,
5%,
2/01/31
...................................
1,460,000
1,514,138
GO,
2014
A,
Refunding,
5%,
2/01/32
...................................
2,000,000
2,073,977
GO,
2014
A,
Refunding,
5%,
2/01/33
...................................
1,700,000
1,763,037
GO,
2014
A,
Refunding,
5%,
2/01/34
...................................
1,805,000
1,871,931
GO,
2014
A,
Refunding,
5%,
2/01/35
...................................
1,000,000
1,037,081
Lakeview
Independent
School
District
No.
2167
,
GO
,
2021
A
,
2
%
,
2/01/38
.........
1,055,000
945,909
Lakeville
Independent
School
District
No.
194
,
GO
,
2021
B
,
2.125
%
,
2/01/42
.......
4,085,000
3,608,561
Mankato
Independent
School
District
No.
77
,
GO
,
2020
A
,
4
%
,
2/01/41
...........
1,385,000
1,559,950
Maple
River
Independent
School
District
No.
2135
,
GO,
2020
A,
4%,
2/01/45
............................................
6,000,000
6,783,353
GO,
2020
A,
4%,
2/01/50
............................................
10,000,000
11,260,639
Metropolitan
Council
,
GO,
2016
C,
Refunding,
3%,
3/01/30
...................................
3,305,000
3,469,008
GO,
2019
A,
3%,
3/01/29
............................................
6,400,000
6,733,067
GO,
2020
B,
2.125%,
3/01/36
.........................................
4,500,000
4,170,633
GO,
2020
B,
2.125%,
3/01/37
.........................................
4,000,000
3,714,921
GO,
2020
B,
2.125%,
3/01/38
.........................................
4,000,000
3,691,149
Minneapolis
Special
School
District
No.
1
,
GO
,
2017
B
,
5
%
,
2/01/30
.............
2,590,000
3,090,577
Minneapolis-St.
Paul
Metropolitan
Airports
Commission
,
Revenue,
2019
A,
Refunding,
5%,
1/01/44
...............................
4,750,000
5,576,999
Revenue,
Senior
Lien,
2016
C,
5%,
1/01/34
..............................
2,870,000
3,297,220
Revenue,
Senior
Lien,
2016
C,
5%,
1/01/35
..............................
4,025,000
4,623,067
Revenue,
Senior
Lien,
2016
C,
5%,
1/01/41
..............................
19,655,000
22,540,008
Revenue,
Senior
Lien,
2016
C,
5%,
1/01/46
..............................
15,500,000
17,637,388
Minnesota
Higher
Education
Facilities
Authority
,
Carleton
College,
Revenue,
2017,
Refunding,
4%,
3/01/47
...................
3,575,000
3,911,981
Macalester
College,
Revenue,
2017,
Refunding,
3%,
3/01/33
.................
3,010,000
3,134,985
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Minnesota
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
106
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Minnesota
(continued)
Minnesota
Higher
Education
Facilities
Authority,
(continued)
Macalester
College,
Revenue,
2017,
Refunding,
4%,
3/01/42
.................
$
900,000
$
985,208
Macalester
College,
Revenue,
2021,
Refunding,
4%,
3/01/36
.................
125,000
143,592
Macalester
College,
Revenue,
2021,
Refunding,
4%,
3/01/37
.................
125,000
143,413
Macalester
College,
Revenue,
2021,
Refunding,
3%,
3/01/40
.................
365,000
375,405
Macalester
College,
Revenue,
2021,
Refunding,
3%,
3/01/43
.................
330,000
335,965
St.
John's
University,
Revenue,
2021,
Refunding,
4%,
10/01/30
...............
320,000
366,918
St.
John's
University,
Revenue,
2021,
Refunding,
4%,
10/01/31
...............
270,000
308,889
St.
John's
University,
Revenue,
2021,
Refunding,
4%,
10/01/32
...............
255,000
290,840
St.
John's
University,
Revenue,
2021,
Refunding,
4%,
10/01/33
...............
240,000
272,656
St.
John's
University,
Revenue,
2021,
Refunding,
4%,
10/01/34
...............
355,000
401,981
St.
John's
University,
Revenue,
2021,
Refunding,
3%,
10/01/36
...............
210,000
217,391
St.
John's
University,
Revenue,
2021,
Refunding,
3%,
10/01/37
...............
250,000
258,277
St.
John's
University,
Revenue,
2021,
Refunding,
3%,
10/01/38
...............
250,000
256,797
St.
John's
University,
Revenue,
2021,
Refunding,
4%,
10/01/39
...............
220,000
247,526
St.
John's
University,
Revenue,
2021,
Refunding,
4%,
10/01/40
...............
310,000
348,203
St.
Olaf
College,
Revenue,
2021,
3%,
10/01/41
...........................
2,600,000
2,666,952
St.
Olaf
College,
Revenue,
2021,
4%,
10/01/50
...........................
7,545,000
8,394,449
St.
Olaf
College,
Revenue,
Eight
N,
Refunding,
4%,
10/01/33
.................
1,500,000
1,631,172
St.
Olaf
College,
Revenue,
Eight
N,
Refunding,
4%,
10/01/35
.................
500,000
543,038
University
of
St.
Thomas,
Revenue,
2016
8-L,
Refunding,
4%,
4/01/31
..........
4,200,000
4,529,804
University
of
St.
Thomas,
Revenue,
2016
8-L,
Refunding,
5%,
4/01/35
..........
1,720,000
1,920,509
University
of
St.
Thomas,
Revenue,
2017
A,
Refunding,
4%,
10/01/36
..........
750,000
824,214
University
of
St.
Thomas,
Revenue,
2017
A,
Refunding,
4%,
10/01/37
..........
750,000
823,522
University
of
St.
Thomas,
Revenue,
2019,
5%,
10/01/40
.....................
3,260,000
3,903,652
University
of
St.
Thomas,
Revenue,
2019,
4%,
10/01/44
.....................
2,745,000
3,042,564
Minnesota
Housing
Finance
Agency
,
Revenue,
2009,
4%,
8/01/29
.........................................
3,675,000
3,683,132
Revenue,
2011,
5%,
8/01/31
.........................................
2,225,000
2,233,044
Revenue,
2019
C,
4%,
8/01/39
........................................
1,000,000
1,122,563
Revenue,
2020
B,
4%,
8/01/39
........................................
2,055,000
2,354,814
Revenue,
2020
B,
GNMA
Insured,
2.8%,
1/01/44
..........................
3,180,000
3,225,984
Revenue,
2020
D,
4%,
8/01/41
........................................
1,000,000
1,142,330
Revenue,
2020
D,
4%,
8/01/42
........................................
1,000,000
1,140,050
Revenue,
2020
E,
GNMA
Insured,
2.5%,
7/01/40
..........................
1,975,000
1,934,447
Revenue,
2020
E,
GNMA
Insured,
2.7%,
7/01/44
..........................
2,770,000
2,770,743
Revenue,
2020
G,
GNMA
Insured,
2.45%,
7/01/45
.........................
2,225,000
2,058,323
Revenue,
2021
B,
GNMA
Insured,
2.1%,
7/01/36
..........................
970,000
917,117
Revenue,
2021
B,
GNMA
Insured,
2.3%,
7/01/41
..........................
3,420,000
3,184,433
Revenue,
2021
B,
GNMA
Insured,
2.45%,
7/01/46
.........................
3,400,000
3,105,673
Revenue,
2021
B,
GNMA
Insured,
2.5%,
7/01/51
..........................
3,990,000
3,594,159
Revenue,
2021
D,
Refunding,
GNMA
Insured,
2%,
7/01/36
...................
5,845,000
5,490,244
Revenue,
2021
D,
Refunding,
GNMA
Insured,
2.45%,
1/01/52
................
11,685,000
10,377,832
Revenue,
2021
H,
2.55%,
1/01/46
.....................................
4,000,000
3,655,866
Revenue,
2022
A,
GNMA
Insured,
2.75%,
7/01/42
.........................
2,680,000
2,622,665
Revenue,
2022
A,
GNMA
Insured,
2.9%,
1/01/45
..........................
1,290,000
1,263,795
Minnesota
Municipal
Power
Agency
,
Revenue,
2014
A,
Refunding,
4%,
10/01/31
..............................
1,265,000
1,344,736
Revenue,
2014
A,
Refunding,
4%,
10/01/32
..............................
1,200,000
1,274,069
Revenue,
2014
A,
Refunding,
4%,
10/01/33
..............................
1,000,000
1,060,157
Revenue,
2014
A,
Refunding,
5%,
10/01/34
..............................
1,000,000
1,090,644
Revenue,
2014
A,
Refunding,
5%,
10/01/35
..............................
1,005,000
1,095,027
Revenue,
2016,
4%,
10/01/41
........................................
4,680,000
5,057,261
Revenue,
2016,
5%,
10/01/47
........................................
4,650,000
5,228,838
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Minnesota
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
107
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Minnesota
(continued)
Minnesota
Public
Facilities
Authority
,
Revenue
,
2010
A
,
5
%
,
3/01/24
.............
$
17,010,000
$
18,305,696
Minnesota
State
Colleges
And
Universities
Foundation
,
Revenue
,
2012
A
,
Refunding
,
5
%
,
10/01/22
.....................................................
1,410,000
1,444,789
b
Minnetonka
Independent
School
District
No.
276
,
COP
,
2022
A
,
4
%
,
2/01/52
.......
1,850,000
2,002,614
Moorhead
Independent
School
District
No.
152
,
GO
,
2020
A
,
2.5
%
,
2/01/37
.......
9,295,000
9,160,810
North
St.
Paul-Maplewood-Oakdale
Independent
School
District
No.
622
,
GO,
2019
A,
3%,
2/01/42
............................................
5,975,000
6,141,616
GO,
2019
A,
3%,
2/01/46
............................................
23,965,000
24,353,786
Northern
Municipal
Power
Agency
,
Revenue,
2013
A,
5%,
1/01/30
........................................
1,190,000
1,228,151
Revenue,
2017,
Refunding,
5%,
1/01/41
.................................
800,000
907,722
Norwood
Young
America
Independent
School
District
No.
108
,
GO
,
2022
A
,
2.25
%
,
2/01/45
.........................................................
1,700,000
1,477,762
Prior
Lake-Savage
Independent
School
District
No.
719
,
GO,
2018
B,
Zero
Cpn
.,
2/01/27
.......................................
10,545,000
9,674,288
GO,
2018
B,
Zero
Cpn
.,
2/01/28
.......................................
13,055,000
11,679,948
GO,
2018
B,
Zero
Cpn
.,
2/01/30
.......................................
9,010,000
7,512,624
GO,
2018
B,
Zero
Cpn
.,
2/01/31
.......................................
5,310,000
4,271,721
Red
Rock
Central
Independent
School
District
No.
2884
,
GO
,
2022
A
,
2.375
%
,
2/01/47
3,000,000
2,626,440
Robbinsdale
Independent
School
District
No.
281
,
GO
,
2021
A
,
5
%
,
2/01/31
.......
1,910,000
2,349,460
Rochester
Independent
School
District
No.
535
,
GO,
2020
A,
4%,
2/01/28
............................................
4,300,000
4,900,694
GO,
2020
A,
4%,
2/01/29
............................................
6,565,000
7,453,238
Roseville
Independent
School
District
No.
623
,
GO,
2018
A,
5%,
2/01/30
............................................
3,700,000
4,276,714
GO,
2018
A,
4%,
2/01/34
............................................
9,535,000
10,357,208
Sartell-St.
Stephen
Independent
School
District
No.
748
,
GO,
2016
B,
Zero
Cpn
.,
2/01/36
.......................................
3,000,000
1,944,112
GO,
2016
B,
Zero
Cpn
.,
2/01/37
.......................................
2,820,000
1,756,216
GO,
2016
B,
Zero
Cpn
.,
2/01/38
.......................................
5,220,000
3,133,954
GO,
2016
B,
Zero
Cpn
.,
2/01/39
.......................................
3,020,000
1,747,237
South
Washington
County
Independent
School
District
No.
833
,
GO
,
2016
C
,
4
%
,
2/01/29
.........................................................
5,260,000
5,729,921
Southern
Minnesota
Municipal
Power
Agency
,
Revenue,
1994
A,
NATL
Insured,
Zero
Cpn
.,
1/01/23
.......................
4,000,000
3,965,373
Revenue,
1994
A,
NATL
Insured,
Zero
Cpn
.,
1/01/26
.......................
5,395,000
5,045,076
Revenue,
1994
A,
NATL
Insured,
Zero
Cpn
.,
1/01/27
.......................
6,600,000
6,033,403
Revenue,
2015
A,
Refunding,
5%,
1/01/46
...............................
9,345,000
10,323,254
Revenue,
2017
A,
5%,
1/01/42
........................................
1,315,000
1,530,290
Revenue,
2019
A,
5%,
1/01/32
........................................
700,000
849,214
Revenue,
2019
A,
5%,
1/01/33
........................................
560,000
678,597
Revenue,
2019
A,
5%,
1/01/34
........................................
610,000
738,542
St.
Cloud
Independent
School
District
No.
742
,
COP,
2017
A,
4%,
2/01/38
...........................................
1,000,000
1,034,085
GO,
2015
A,
4%,
2/01/28
............................................
2,080,000
2,224,399
GO,
2017
B,
4%,
2/01/30
............................................
4,060,000
4,406,627
GO,
2017
B,
4%,
2/01/36
............................................
2,500,000
2,691,796
GO,
2017
B,
4%,
2/01/37
............................................
2,250,000
2,419,974
St.
Francis
Independent
School
District
No.
15
,
GO,
2018
A,
4%,
2/01/37
............................................
1,025,000
1,046,885
GO,
2018
A,
3.5%,
2/01/41
...........................................
6,350,000
6,442,578
St.
Paul
Independent
School
District
No.
625
,
GO
,
2013
B
,
Refunding
,
5
%
,
2/01/24
..
2,925,000
3,033,895
St.
Paul
Port
Authority
,
Revenue,
2021-2,
4%,
10/01/40
.......................................
1,100,000
1,171,029
District
Energy
St.
Paul
Obligated
Group,
Revenue,
2021-1,
Refunding,
3%,
10/01/34
300,000
307,890
District
Energy
St.
Paul
Obligated
Group,
Revenue,
2021-1,
Refunding,
4%,
10/01/41
675,000
722,558
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Minnesota
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
108
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Minnesota
(continued)
State
of
Minnesota
,
COP,
2014,
5%,
6/01/36
.............................................
$
3,615,000
$
3,892,900
GO,
2013
F,
Refunding,
4%,
10/01/25
..................................
15,000,000
15,676,423
GO,
2016
A,
5%,
8/01/28
............................................
4,215,000
4,859,665
GO,
2018
A,
5%,
8/01/31
............................................
5,000,000
6,033,238
GO,
2019
A,
5%,
8/01/29
............................................
10,000,000
12,379,931
GO,
2019
A,
5%,
8/01/38
............................................
3,540,000
4,332,895
Revenue,
2012
B,
Refunding,
4%,
3/01/26
...............................
3,000,000
3,008,041
Revenue,
2012
B,
Refunding,
3%,
3/01/30
...............................
5,000,000
5,005,713
Revenue,
2014
A,
5%,
6/01/38
........................................
8,500,000
8,892,316
Stearns
County
Housing
&
Redevelopment
Authority
,
Revenue
,
2021
A
,
Refunding
,
3
%
,
2/01/61
......................................................
1,105,000
1,027,680
University
of
Minnesota
,
Revenue,
2014
B,
5%,
1/01/38
........................................
4,500,000
4,787,005
Revenue,
2015
A,
Refunding,
5%,
8/01/25
...............................
5,000,000
5,612,185
Revenue,
2015
A,
Refunding,
5%,
8/01/28
...............................
7,225,000
8,081,334
Revenue,
2016
A,
5%,
4/01/41
........................................
5,000,000
5,651,053
Revenue,
2017
A,
5%,
9/01/42
........................................
4,410,000
5,155,607
Revenue,
2017
B,
Refunding,
5%,
12/01/30
..............................
5,575,000
6,611,446
Revenue,
2019
A,
5%,
4/01/39
........................................
1,805,000
2,182,124
Revenue,
2019
A,
5%,
4/01/41
........................................
6,045,000
7,288,839
Revenue,
2019
A,
5%,
4/01/44
........................................
8,505,000
10,227,851
Virginia
Independent
School
District
No.
706
,
Rock
Ridge
Independent
School
District
No.
2909,
GO,
2019
A,
5%,
2/01/30
.....
3,600,000
4,300,274
Rock
Ridge
Independent
School
District
No.
2909,
GO,
2019
A,
3%,
2/01/40
.....
3,295,000
3,414,061
Watertown-Mayer
Independent
School
District
No.
111
,
GO,
2020
A,
Zero
Cpn
.,
2/01/33
.......................................
2,470,000
1,897,903
GO,
2020
A,
Zero
Cpn
.,
2/01/34
.......................................
2,470,000
1,838,951
GO,
2020
A,
Zero
Cpn
.,
2/01/36
.......................................
1,470,000
1,021,936
GO,
2020
A,
Zero
Cpn
.,
2/01/37
.......................................
2,470,000
1,658,782
Waterville-Elysian-Morristown
Independent
School
District
No.
2143
,
GO
,
2019
A
,
3
%
,
2/01/32
.........................................................
1,995,000
2,074,320
West
St.
Paul-Mendota
Heights-Eagan
Independent
School
District
No.
197
,
GO
,
2018
A
,
4
%
,
2/01/34
....................................................
2,655,000
2,948,097
Western
Minnesota
Municipal
Power
Agency
,
Revenue,
2012
A,
Refunding,
5%,
1/01/24
...............................
5,000,000
5,161,320
Revenue,
2012
A,
Refunding,
5%,
1/01/25
...............................
3,370,000
3,482,900
Revenue,
2012
A,
Refunding,
5%,
1/01/29
...............................
1,200,000
1,239,489
Revenue,
2014
A,
Pre-Refunded,
5%,
1/01/40
............................
8,075,000
8,635,591
Revenue,
2014
A,
Pre-Refunded,
5%,
1/01/46
............................
11,870,000
12,694,051
Revenue,
2015
A,
Refunding,
5%,
1/01/35
...............................
3,000,000
3,370,514
Revenue,
2015
A,
Refunding,
5%,
1/01/36
...............................
2,035,000
2,283,111
Revenue,
2018
A,
5%,
1/01/49
........................................
5,000,000
5,877,178
Zumbro
Education
District
,
COP,
2021
A,
4%,
2/01/32
...........................................
200,000
223,108
COP,
2021
A,
4%,
2/01/33
...........................................
150,000
167,258
COP,
2021
A,
4%,
2/01/34
...........................................
125,000
139,245
COP,
2021
A,
2.125%,
2/01/35
........................................
325,000
300,111
COP,
2021
A,
4%,
2/01/38
...........................................
390,000
431,433
COP,
2021
A,
4%,
2/01/41
...........................................
635,000
697,246
975,871,781
South
Carolina
0.7%
South
Carolina
Jobs-Economic
Development
Authority
,
a
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
2,100,000
1,965,077
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
2,100,000
1,962,883
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Minnesota
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
109
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
South
Carolina
(continued)
a
South
Carolina
State
Housing
Finance
&
Development
Authority
,
Garden
Oaks
LP
,
Revenue
,
144A,
2021
A
,
4.2
%
,
12/01/39
................................
$
3,500,000
$
3,258,743
7,186,703
Texas
0.7%
a
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
2,800,000
2,597,513
Lake
Houston
Redevelopment
Authority
,
City
of
Houston
Reinvestment
Zone
No.
10,
Revenue,
2021,
Refunding,
3%,
9/01/34
200,000
199,778
City
of
Houston
Reinvestment
Zone
No.
10,
Revenue,
2021,
Refunding,
4%,
9/01/35
225,000
248,271
City
of
Houston
Reinvestment
Zone
No.
10,
Revenue,
2021,
Refunding,
4%,
9/01/36
250,000
275,538
a
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
A-2
,
5
%
,
12/01/52
............
4,000,000
4,012,899
7,333,999
Washington
0.2%
a
Washington
State
Housing
Finance
Commission
,
Madison
at
Rivers
Edge
Apartments
LLC
,
Revenue
,
144A,
2021
A
,
3.65
%
,
1/01/37
............................
2,100,000
1,964,537
Wisconsin
0.9%
a
Public
Finance
Authority
,
Revenue,
144A,
2022,
B-1,
4%,
12/28/44
................................
2,100,000
2,023,380
Affordable
Housing
Preservation
Corp.
(The),
Revenue,
144A,
2021,
5.25%,
12/01/22
.......................................................
7,500,000
7,465,495
9,488,875
U.S.
Territories
1.2%
Puerto
Rico
1.2%
Puerto
Rico
Electric
Power
Authority
,
Revenue
,
VV
,
Refunding
,
NATL
Insured
,
5.25
%
,
7/01/32
.........................................................
1,800,000
1,906,168
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue,
2007
N,
Refunding,
AGMC
Insured,
5.25%,
7/01/36
................
775,000
809,782
Revenue,
CC,
Refunding,
AGMC
Insured,
5.25%,
7/01/32
...................
2,890,000
3,027,824
Revenue,
CC,
Refunding,
AGMC
Insured,
5.5%,
7/01/31
....................
1,500,000
1,599,594
Revenue,
L,
Refunding,
NATL
Insured,
5.25%,
7/01/35
......................
1,675,000
1,772,058
Revenue,
L,
Refunding,
AGMC
Insured,
5.25%,
7/01/41
.....................
3,575,000
3,719,038
12,834,464
Total
U.S.
Territories
....................................................................
12,834,464
Total
Municipal
Bonds
(Cost
$996,597,209)
.....................................
1,022,634,872
a
a
a
a
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Minnesota
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
110
s
Short
Term
Investments
0.7%
a
a
Principal
Amount
a
Value
Municipal
Bonds
0.7%
Minnesota
0.7%
c
City
of
Minneapolis
St.
Paul
Housing
&
Redevelopment
Authority
,
Allina
Health
Obligated
Group
,
Revenue
,
B-2
,
LOC
JPMorgan
Chase
Bank
NA
,
Daily
VRDN
and
Put
,
0.06
%
,
11/15/35
...............................................
$
7,400,000
$
7,400,000
Total
Municipal
Bonds
(Cost
$7,400,000)
.......................................
7,400,000
Total
Short
Term
Investments
(Cost
$7,400,000
)
.................................
7,400,000
a
Total
Investments
(Cost
$1,003,997,209)
96.9%
..................................
$1,030,034,872
Other
Assets,
less
Liabilities
3.1%
.............................................
33,470,683
Net
Assets
100.0%
...........................................................
$1,063,505,555
See
Abbreviations
on
page
176
.
a
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
February
28,
2022,
the
aggregate
value
of
these
securities
was
$25,167,495,
representing
2.4%
of
net
assets.
b
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).
c
Variable
rate
demand
notes
(VRDNs)
are
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.
Unless
otherwise
noted,
the
coupon
rate
is
determined
based
on
factors
including
supply
and
demand,
underlying
credit,
tax
treatment,
and
current
short
term
rates.
The
coupon
rate
shown
represents
the
rate
at
period
end.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Ohio
Tax-Free
Income
Fund
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
111
a
Year
Ended
February
28,
Year
Ended
February
28,
2019
b
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
................................
$12.90
$13.20
$12.49
$12.38
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.25
0.30
0.35
0.17
Net
realized
and
unrealized
gains
(losses)
........................
(0.36)
(0.30)
0.71
0.11
Total
from
investment
operations
.................................
(0.11)
—
1.06
0.28
Less
distributions
from:
Net
investment
income
.......................................
(0.25)
(0.30)
(0.35)
(0.17)
Net
asset
value,
end
of
year
....................................
$12.54
$12.90
$13.20
$12.49
Total
return
e
................................................
(0.90)%
0.02%
8.60%
2.30%
Ratios
to
average
net
assets
f
Expenses
g
.................................................
0.81%
0.80%
0.81%
0.80%
Net
investment
income
........................................
1.94%
2.31%
2.69%
2.88%
Supplemental
data
Net
assets,
end
of
year
(000’s)
..................................
$315,516
$261,661
$160,174
$75,132
Portfolio
turnover
rate
.........................................
24.59%
20.64%
4.56%
13.09%
a
For
the
year
ended
February
29.
b
For
the
period
September
10,
2018
(effective
date)
to
February
28,
2019.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Ohio
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
112
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$12.90
$13.20
$12.49
$12.46
$12.56
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.27
0.33
0.37
0.38
0.38
Net
realized
and
unrealized
gains
(losses)
...........
(0.36)
(0.31)
0.71
0.03
(0.10)
Total
from
investment
operations
....................
(0.09)
0.02
1.08
0.41
0.28
Less
distributions
from:
Net
investment
income
..........................
(0.27)
(0.32)
(0.37)
(0.38)
(0.38)
Net
asset
value,
end
of
year
.......................
$12.54
$12.90
$13.20
$12.49
$12.46
Total
return
d
...................................
(0.75)%
0.17%
8.76%
3.34%
2.26%
Ratios
to
average
net
assets
Expenses
.....................................
0.66%
e
0.65%
e
0.66%
e
0.65%
e
0.64%
Net
investment
income
...........................
2.10%
2.49%
2.84%
3.03%
3.02%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$850,932
$929,798
$996,280
$985,590
$1,090,194
Portfolio
turnover
rate
............................
24.59%
20.64%
4.56%
13.09%
15.46%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Ohio
Tax-Free
Income
Fund
(continued)
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
113
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$13.08
$13.38
$12.66
$12.63
$12.72
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.20
0.25
0.30
0.31
0.32
Net
realized
and
unrealized
gains
(losses)
...........
(0.37)
(0.30)
0.72
0.03
(0.10)
Total
from
investment
operations
....................
(0.17)
(0.05)
1.02
0.34
0.22
Less
distributions
from:
Net
investment
income
..........................
(0.20)
(0.25)
(0.30)
(0.31)
(0.31)
Net
asset
value,
end
of
year
.......................
$12.71
$13.08
$13.38
$12.66
$12.63
Total
return
d
...................................
(1.36)%
(0.37)%
8.16%
2.72%
1.75%
Ratios
to
average
net
assets
Expenses
.....................................
1.20%
e
1.20%
e
1.21%
e
1.20%
e
1.19%
Net
investment
income
...........................
1.52%
1.92%
2.29%
2.48%
2.47%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$125,479
$169,258
$203,367
$215,045
$308,088
Portfolio
turnover
rate
............................
24.59%
20.64%
4.56%
13.09%
15.46%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Ohio
Tax-Free
Income
Fund
(continued)
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Report
The
accompanying
notes
are
an
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part
of
these
financial
statements.
114
a
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2022
2021
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$12.91
$13.22
$12.50
$12.47
$12.73
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.29
0.34
0.38
0.39
0.23
Net
realized
and
unrealized
gains
(losses)
...........
(0.36)
(0.31)
0.73
0.03
(0.26)
Total
from
investment
operations
....................
(0.07)
0.03
1.11
0.42
(0.03)
Less
distributions
from:
Net
investment
income
..........................
(0.29)
(0.34)
(0.39)
(0.39)
(0.23)
Net
asset
value,
end
of
year
.......................
$12.55
$12.91
$13.22
$12.50
$12.47
Total
return
e
...................................
(0.61)%
0.31%
8.90%
3.47%
(0.24)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
......
0.53%
0.54%
0.53%
0.53%
0.52%
Expenses
net
of
waiver
and
payments
by
affiliates
.......
0.52%
g
0.51%
g
0.52%
g
0.51%
g
0.50%
Net
investment
income
...........................
2.23%
2.59%
2.98%
3.17%
3.16%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$21,433
$16,977
$10,638
$6,942
$7,847
Portfolio
turnover
rate
............................
24.59%
20.64%
4.56%
13.09%
15.46%
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Ohio
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
115
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$12.91
$13.21
$12.50
$12.47
$12.57
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.29
0.34
0.38
0.39
0.40
Net
realized
and
unrealized
gains
(losses)
...........
(0.37)
(0.30)
0.71
0.03
(0.10)
Total
from
investment
operations
....................
(0.08)
0.04
1.09
0.42
0.30
Less
distributions
from:
Net
investment
income
..........................
(0.28)
(0.34)
(0.38)
(0.39)
(0.40)
Net
asset
value,
end
of
year
.......................
$12.55
$12.91
$13.21
$12.50
$12.47
Total
return
....................................
(0.65)%
0.27%
8.86%
3.43%
2.36%
Ratios
to
average
net
assets
Expenses
.....................................
0.56%
d
0.55%
d
0.56%
d
0.55%
d
0.54%
Net
investment
income
...........................
2.20%
2.58%
2.94%
3.13%
3.12%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$299,002
$295,666
$243,913
$179,427
$170,329
Portfolio
turnover
rate
............................
24.59%
20.64%
4.56%
13.09%
15.46%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments,
February
28,
2022
Franklin
Ohio
Tax-Free
Income
Fund
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The
accompanying
notes
are
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part
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statements.
116
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
97.2%
California
0.2%
California
Municipal
Finance
Authority
,
Revenue
,
2022
A-1
,
4.25
%
,
12/01/37
.......
$
2,800,000
$
2,809,447
Florida
0.7%
Capital
Trust
Agency,
Inc.
,
Kingdom
Development
Obligated
Group,
Revenue,
2021
A-1,
3.75%,
12/01/36
....
9,144,000
8,970,721
a
SHI
-
Lake
Osborne
LLC,
Revenue,
144A,
2021
A-1,
3.68%,
1/01/57
...........
2,200,000
1,969,368
10,940,089
Illinois
0.5%
State
of
Illinois
,
GO,
2003,
5.1%,
6/01/33
............................................
2,500,000
2,759,778
GO,
2017
C,
5%,
11/01/29
...........................................
1,500,000
1,714,740
GO,
2017
D,
5%,
11/01/26
...........................................
3,000,000
3,392,340
GO,
2021
A,
4%,
3/01/39
............................................
500,000
540,400
8,407,258
New
Jersey
0.5%
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue,
2020
AA,
4%,
6/15/36
.......................................
1,500,000
1,643,622
Revenue,
2020
AA,
5%,
6/15/36
.......................................
4,000,000
4,733,765
Revenue,
2020
AA,
4%,
6/15/40
.......................................
2,000,000
2,173,110
8,550,497
New
York
0.5%
Metropolitan
Transportation
Authority
,
Revenue
,
2020
A-1
,
4
%
,
11/15/40
..........
7,500,000
8,123,838
Ohio
91.9%
Akron
Bath
Copley
Joint
Township
Hospital
District
,
Summa
Health
System
Obligated
Group
,
Revenue
,
2020
,
Refunding
,
3
%
,
11/15/40
..........................
5,400,000
5,390,703
American
Municipal
Power,
Inc.
,
Revenue,
2015
A,
Refunding,
5%,
2/15/28
...............................
5,000,000
5,337,387
Revenue,
2016
A,
4%,
2/15/36
........................................
1,000,000
1,073,392
Revenue,
2016
A,
Refunding,
5%,
2/15/46
...............................
7,500,000
8,342,809
Revenue,
2016
A,
5%,
2/15/46
........................................
5,000,000
5,561,873
Revenue,
2017
A,
Refunding,
5%,
2/15/37
...............................
3,700,000
4,350,084
Revenue,
2017
A,
Refunding,
5%,
2/15/38
...............................
3,500,000
4,109,314
Revenue,
2019
A,
5%,
2/15/44
........................................
3,345,000
3,946,778
Revenue,
2019
C,
Refunding,
4%,
2/15/39
...............................
18,795,000
21,149,805
Anthony
Wayne
Local
School
District
,
GO
,
2017
A
,
4
%
,
12/01/39
................
3,000,000
3,210,716
Apollo
Joint
Vocational
School
District
,
GO
,
2017
,
Refunding
,
4
%
,
12/01/39
........
6,530,000
7,191,797
Beaver
Local
School
District
,
GO
,
2012
,
4
%
,
12/01/40
........................
3,000,000
3,025,298
Berkshire
Local
School
District
,
GO
,
2021
,
Refunding
,
3
%
,
10/01/56
.............
735,000
726,920
Bethel
Local
School
District
,
COP,
2020,
BAM
Insured,
3%,
12/01/45
.................................
4,095,000
4,206,984
COP,
2020,
BAM
Insured,
2.75%,
12/01/49
..............................
4,000,000
3,891,922
Big
Walnut
Local
School
District
,
GO
,
2019
,
5
%
,
12/01/53
.....................
9,155,000
10,718,128
Bloom-Carroll
Local
School
District
,
GO
,
2018
A
,
5
%
,
11/01/55
.................
7,025,000
8,323,145
Bowling
Green
State
University
,
Revenue
,
2017
B
,
Refunding
,
5
%
,
6/01/42
........
3,250,000
3,749,093
Brecksville-Broadview
Heights
City
School
District
,
GO
,
2018
,
Pre-Refunded
,
5.25
%
,
12/01/54
........................................................
7,390,000
7,921,640
Brooklyn
City
School
District
,
GO,
2017,
Refunding,
AGMC
Insured,
5%,
12/01/38
........................
1,905,000
2,196,826
GO,
2017,
Refunding,
AGMC
Insured,
5%,
12/01/49
........................
9,000,000
10,195,917
Buckeye
Tobacco
Settlement
Financing
Authority
,
Revenue,
Senior
Lien,
2020
A-2,
1,
Refunding,
3%,
6/01/48
..................
43,215,000
38,902,610
Revenue,
Senior
Lien,
2020
A-2,
1,
Refunding,
4%,
6/01/48
..................
3,245,000
3,410,103
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Ohio
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
117
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Ohio
(continued)
Butler
County
Port
Authority
,
Community
First
Solutions
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
5/15/32
........................................................
$
100,000
$
113,010
Community
First
Solutions
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
5/15/33
........................................................
135,000
152,613
Community
First
Solutions
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
5/15/34
........................................................
185,000
208,864
Community
First
Solutions
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
5/15/35
........................................................
195,000
219,725
Community
First
Solutions
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
5/15/36
........................................................
205,000
230,822
Community
First
Solutions
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
5/15/37
........................................................
210,000
236,153
Community
First
Solutions
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
5/15/38
........................................................
220,000
247,177
Community
First
Solutions
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
5/15/39
........................................................
225,000
252,297
Community
First
Solutions
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
5/15/40
........................................................
240,000
268,628
Community
First
Solutions
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
5/15/41
........................................................
245,000
273,918
Community
First
Solutions
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
5/15/46
........................................................
900,000
999,075
Community
First
Solutions
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
5/15/51
........................................................
1,000,000
1,103,929
Canal
Winchester
Local
School
District
,
GO,
2005,
NATL
Insured,
Zero
Cpn
.,
12/01/32
............................
3,955,000
3,074,756
GO,
2005,
NATL
Insured,
Zero
Cpn
.,
12/01/33
............................
2,000,000
1,511,262
Chillicothe
City
School
District
,
GO,
2006,
Refunding,
NATL
Insured,
Zero
Cpn
.,
12/01/22
...................
1,905,000
1,889,395
GO,
2006,
Refunding,
NATL
Insured,
Zero
Cpn
.,
12/01/23
...................
1,905,000
1,855,214
GO,
2006,
Refunding,
NATL
Insured,
Zero
Cpn
.,
12/01/24
...................
1,905,000
1,817,598
Cincinnati
City
School
District
,
GO,
2006,
Refunding,
NATL
Insured,
5.25%,
12/01/27
......................
14,900,000
17,949,592
GO,
2006,
Refunding,
NATL
Insured,
5.25%,
12/01/28
......................
8,180,000
10,087,226
City
of
Chillicothe
,
Adena
Health
System
Obligated
Group
,
Revenue
,
2017
,
Refunding
,
5
%
,
12/01/37
.....................................................
5,000,000
5,752,558
City
of
Cincinnati
,
GO
,
2015
A
,
Pre-Refunded
,
5.25
%
,
12/01/40
.................
6,500,000
7,318,373
City
of
Cleveland
,
GO,
2012,
Pre-Refunded,
5%,
12/01/30
.................................
2,965,000
3,058,372
GO,
2012,
5%,
12/01/30
.............................................
35,000
35,987
GO,
2020
A,
4%,
12/01/35
...........................................
1,000,000
1,155,573
GO,
2020
A,
2%,
12/01/36
...........................................
1,215,000
1,122,836
Water
Pollution
Control,
Revenue,
2016,
5%,
11/15/41
......................
2,000,000
2,224,420
City
of
Columbus
,
GO,
2014
A,
5%,
2/15/25
............................................
5,000,000
5,369,514
GO,
2016-3,
Refunding,
5%,
2/15/27
...................................
5,000,000
5,846,827
GO,
2018
A,
5%,
4/01/34
............................................
7,000,000
8,493,452
GO,
2021
A,
5%,
4/01/34
............................................
5,000,000
6,296,619
GO,
2021
A,
5%,
4/01/38
............................................
5,000,000
6,269,682
Sewerage,
Revenue,
2014,
Refunding,
4%,
6/01/31
........................
15,000,000
15,977,327
Sewerage,
Revenue,
2015,
Refunding,
5%,
6/01/29
........................
5,000,000
5,725,410
City
of
Marysville
,
Wastewater
Treatment
System,
Revenue,
2015,
Refunding,
BAM
Insured,
4%,
12/01/40
.......................................................
3,015,000
3,178,905
Wastewater
Treatment
System,
Revenue,
2015,
Refunding,
BAM
Insured,
5%,
12/01/47
.......................................................
5,035,000
5,444,127
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Ohio
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
118
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Ohio
(continued)
City
of
Marysville,
(continued)
Wastewater
Treatment
System,
Revenue,
2016,
Refunding,
BAM
Insured,
4%,
12/01/46
.......................................................
$
9,370,000
$
9,885,772
City
of
Middleburg
Heights
,
Southwest
General
Health
Center
Obligated
Group
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
8/01/47
...............................
4,425,000
4,880,509
b
City
of
Mount
Vernon
,
Mount
Vernon
Nazarene
University,
Revenue,
2022,
Refunding,
4%,
2/01/37
.....
995,000
1,057,039
Mount
Vernon
Nazarene
University,
Revenue,
2022,
Refunding,
4%,
2/01/52
.....
1,675,000
1,741,409
City
of
St.
Bernard
,
Income
Tax
,
Revenue
,
2013
,
AGMC
Insured
,
5
%
,
12/01/43
.....
3,760,000
3,967,179
City
of
Toledo
,
Water
System
,
Revenue
,
2013
,
Refunding
,
5
%
,
11/15/38
..........
19,395,000
20,220,994
City
of
Westerville
,
Revenue
,
2014
,
5
%
,
12/01/30
...........................
2,765,000
2,983,306
Cleveland
Department
of
Public
Utilities
Division
of
Public
Power
,
Revenue,
2020
A,
Refunding,
AGMC
Insured,
4%,
11/15/38
..................
600,000
678,686
Revenue,
B-2,
NATL
Insured,
Zero
Cpn
.,
11/15/38
.........................
10,000,000
6,154,052
Cleveland
Department
of
Public
Utilities
Division
of
Water
,
Revenue,
2020
FF,
Refunding,
5%,
1/01/32
..............................
1,000,000
1,233,514
Revenue,
2020
FF,
Refunding,
5%,
1/01/33
..............................
1,000,000
1,232,106
Cleveland
Municipal
School
District
,
GO,
2013,
Refunding,
5%,
12/01/25
....................................
3,600,000
3,709,243
GO,
2013,
Refunding,
5%,
12/01/27
....................................
1,000,000
1,030,040
Cleveland
Public
Library
,
Revenue
,
2019
A
,
4
%
,
12/01/45
.....................
5,000,000
5,666,785
Cleveland-Cuyahoga
County
Port
Authority
,
Cleveland
Museum
of
Natural
History
(The),
Revenue,
2021,
5%,
7/01/35
.......
600,000
738,561
Cleveland
Museum
of
Natural
History
(The),
Revenue,
2021,
4%,
7/01/37
.......
700,000
801,457
Cleveland
Museum
of
Natural
History
(The),
Revenue,
2021,
4%,
7/01/38
.......
100,000
114,258
Cleveland
Museum
of
Natural
History
(The),
Revenue,
2021,
4%,
7/01/39
.......
700,000
798,191
Cleveland
Museum
of
Natural
History
(The),
Revenue,
2021,
4%,
7/01/40
.......
100,000
113,822
Cleveland
Museum
of
Natural
History
(The),
Revenue,
2021,
4%,
7/01/41
.......
800,000
909,125
Cleveland
Museum
of
Natural
History
(The),
Revenue,
2021,
4%,
7/01/46
.......
500,000
562,011
Cleveland
Museum
of
Natural
History
(The),
Revenue,
2021,
4%,
7/01/51
.......
2,000,000
2,237,350
Columbus-Franklin
County
Finance
Authority
,
Revenue,
2021
C,
2.5%,
11/15/41
.....................................
900,000
844,665
Revenue,
2021
C,
3%,
5/15/51
........................................
2,180,000
2,133,479
County
of
Butler
,
Cincinnati
Children's
Hospital
Medical
Center
Obligated
Group,
Revenue,
2016
X,
Refunding,
5%,
5/15/29
............................................
6,750,000
8,227,352
UC
Health
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
11/15/45
..........
20,270,000
23,093,647
UC
Health
Obligated
Group,
Revenue,
2017,
Refunding,
4%,
11/15/35
..........
2,000,000
2,184,726
UC
Health
Obligated
Group,
Revenue,
2017,
Refunding,
4%,
11/15/36
..........
2,140,000
2,332,868
UC
Health
Obligated
Group,
Revenue,
2017,
Refunding,
4%,
11/15/37
..........
1,500,000
1,633,512
County
of
Cuyahoga
,
GO,
2020
A,
Refunding,
4%,
12/01/34
..................................
750,000
867,536
GO,
2020
A,
Refunding,
3%,
12/01/36
..................................
1,100,000
1,156,380
GO,
2020
A,
Refunding,
3%,
12/01/37
..................................
1,610,000
1,680,939
Revenue,
2015,
Pre-Refunded,
5%,
12/01/25
.............................
500,000
533,813
County
of
Franklin
,
Nationwide
Children's
Hospital,
Inc.,
Revenue,
2016
C,
Refunding,
5%,
11/01/34
..
2,600,000
3,033,604
Nationwide
Children's
Hospital,
Inc.,
Revenue,
2016
C,
Refunding,
4%,
11/01/40
..
5,000,000
5,480,477
Nationwide
Children's
Hospital,
Inc.,
Revenue,
2017
A,
Refunding,
4%,
11/01/44
..
7,050,000
7,741,627
b
Ohio
Living
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
7/01/36
..........
2,640,000
2,794,621
b
Ohio
Living
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
7/01/40
..........
13,000,000
13,634,335
OhioHealth
Obligated
Group,
Revenue,
2015,
5%,
5/15/33
...................
6,290,000
6,930,953
Sales
Tax,
Revenue,
2018,
5%,
6/01/43
.................................
6,000,000
7,140,613
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2017,
5%,
12/01/46
............
7,500,000
8,544,357
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2019
A,
4%,
12/01/44
..........
5,075,000
5,655,047
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Ohio
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
119
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Ohio
(continued)
County
of
Hamilton
,
Sewer
System,
Revenue,
2019
A,
Refunding,
5%,
12/01/33
..................
$
6,965,000
$
8,598,405
Sewer
System,
Revenue,
2020
A,
Refunding,
5%,
12/01/32
..................
1,000,000
1,257,310
Sewer
System,
Revenue,
2020
A,
Refunding,
5%,
12/01/33
..................
1,500,000
1,884,135
Sewer
System,
Revenue,
2020
A,
Refunding,
5%,
12/01/34
..................
2,200,000
2,760,337
Sewer
System,
Revenue,
2020
A,
Refunding,
5%,
12/01/35
..................
1,000,000
1,253,475
TriHealth
Obligated
Group,
Revenue,
2017
A,
5%,
8/15/42
...................
5,000,000
5,722,938
County
of
Mahoning
,
Western
Reserve
Care
System
,
Revenue
,
1995
,
NATL
Insured
,
ETM,
5.5
%
,
10/15/25
...............................................
2,210,000
2,399,813
County
of
Miami
,
Kettering
Health
Network
Obligated
Group
,
Revenue
,
2019
,
Refunding
,
5
%
,
8/01/49
.............................................
12,000,000
14,123,414
County
of
Montgomery
,
Kettering
Health
Network
Obligated
Group,
Revenue,
2021,
Refunding,
3%,
8/01/40
5,975,000
6,044,120
Kettering
Health
Network
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
8/01/41
1,000,000
1,130,081
Kettering
Health
Network
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
8/01/51
2,000,000
2,226,242
Premier
Health
Partners
Obligated
Group,
Revenue,
2019
A,
Refunding,
4%,
11/15/39
.......................................................
5,000,000
5,456,746
County
of
Ross
,
Adena
Health
System
Obligated
Group
,
Revenue
,
2019
,
Refunding
,
5
%
,
12/01/49
............................................
5,000,000
5,889,837
County
of
Union
,
GO
,
2018
,
5
%
,
12/01/47
.................................
5,000,000
5,677,640
Cuyahoga
Community
College
District
,
Revenue
,
2012
D
,
Refunding
,
5
%
,
8/01/32
..
2,310,000
2,349,876
Dayton
City
School
District
,
GO
,
2014
,
Refunding
,
5
%
,
11/01/30
................
5,000,000
6,302,670
Dayton-Montgomery
County
Port
Authority
,
Southwest
Ohio
Regional
Bond
Fund,
Revenue,
2021
C,
2%,
11/15/31
..........
430,000
397,777
Southwest
Ohio
Regional
Bond
Fund,
Revenue,
2021
C,
2.5%,
11/15/41
........
1,615,000
1,469,240
Southwest
Ohio
Regional
Bond
Fund,
Revenue,
2021
C,
3%,
5/15/51
..........
1,000,000
905,916
Deer
Park
Community
City
School
District
,
GO
,
2017
A
,
5.25
%
,
12/01/53
.........
3,000,000
3,277,379
Delaware
City
School
District
,
GO
,
2013
,
Pre-Refunded
,
5.75
%
,
12/01/49
.........
6,000,000
6,357,137
Dublin
City
School
District
,
GO
,
2019
A
,
4
%
,
12/01/44
........................
10,000,000
11,326,690
Elyria
City
School
District
,
GO
,
2017
A
,
5
%
,
12/01/43
........................
5,500,000
6,264,396
Fairborn
City
School
District
,
GO
,
2021
A
,
3
%
,
12/01/50
......................
8,065,000
8,251,068
Franklin
City
School
District
,
GO
,
2021
A
,
3
%
,
11/01/57
.......................
8,000,000
8,139,690
Franklin
County
Convention
Facilities
Authority
,
Revenue
,
2014
,
Pre-Refunded
,
5
%
,
12/01/35
........................................................
20,000,000
22,032,050
Fremont
City
School
District
,
GO
,
2017
A
,
5
%
,
1/15/49
.......................
13,970,000
15,287,312
Grandview
Heights
City
School
District
,
GO,
2019,
4%,
12/01/51
.............................................
1,980,000
2,215,859
GO,
2019,
5%,
12/01/53
.............................................
2,150,000
2,560,439
Great
Oaks
Career
Campuses
Board
of
Education
,
COP
,
2021
,
3
%
,
12/01/44
......
1,455,000
1,496,015
Highland
Local
School
District
,
GO
,
2018
A
,
Pre-Refunded
,
5.25
%
,
12/01/54
.......
12,000,000
12,624,659
Hilliard
School
District
,
GO
,
2017
,
4
%
,
12/01/46
............................
10,000,000
10,815,327
Hillsdale
Local
School
District
,
COP,
2020,
BAM
Insured,
4%,
12/01/38
.................................
2,465,000
2,819,191
COP,
2020,
BAM
Insured,
4%,
12/01/40
.................................
1,435,000
1,635,553
Hudson
City
School
District
,
GO
,
2018
,
4
%
,
12/01/45
........................
18,870,000
20,244,529
Indian
Creek
Local
School
District
,
GO,
2018
A,
5%,
11/01/55
...........................................
3,000,000
3,443,442
GO,
2018
B,
BAM
Insured,
5%,
11/01/55
................................
3,910,000
4,477,645
JobsOhio
Beverage
System
,
Revenue,
Senior
Lien
,
2013
A
,
Pre-Refunded
,
5
%
,
1/01/38
.........................................................
26,010,000
26,907,894
Lakewood
City
School
District
,
GO
,
2014
A
,
Pre-Refunded
,
5
%
,
11/01/43
.........
10,895,000
11,202,449
Lakota
Local
School
District
,
GO,
2005,
Refunding,
NATL
Insured,
5.25%,
12/01/26
......................
2,000,000
2,347,180
GO,
2014
C,
Pre-Refunded,
5%,
12/01/30
...............................
4,035,000
4,444,966
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Ohio
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
120
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Ohio
(continued)
Lancaster
City
School
District
,
GO
,
2012
,
Pre-Refunded
,
5
%
,
10/01/49
...........
$
460,000
$
471,322
Little
Miami
Local
School
District
,
GO,
2018,
5%,
11/01/43
.............................................
1,000,000
1,108,555
GO,
2018,
5%,
11/01/48
.............................................
2,460,000
2,718,767
Madeira
City
School
District
,
GO
,
Refunding
,
AGMC
Insured
,
5.25
%
,
12/01/32
.....
9,605,000
12,167,085
Miami
University
,
Revenue,
2014,
Refunding,
5%,
9/01/31
.................................
2,320,000
2,514,011
Revenue,
2014,
Refunding,
5%,
9/01/34
.................................
3,500,000
3,782,837
Revenue,
2017,
Refunding,
5%,
9/01/41
.................................
5,000,000
5,716,626
Revenue,
2021
A,
Refunding,
5%,
9/01/32
...............................
1,070,000
1,357,772
Revenue,
2021
A,
Refunding,
5%,
9/01/33
...............................
1,055,000
1,336,259
Revenue,
2021
A,
Refunding,
5%,
9/01/34
...............................
1,035,000
1,309,449
Revenue,
2021
A,
Refunding,
5%,
9/01/36
...............................
1,370,000
1,728,038
Miami
Valley
Career
Technology
Center
,
GO
,
2018
,
5
%
,
12/01/44
...............
20,000,000
23,576,508
Middletown
City
School
District
,
GO,
2014,
Pre-Refunded,
5.25%,
12/01/40
...............................
2,625,000
2,712,544
GO,
2014,
Pre-Refunded,
5.25%,
12/01/48
...............................
15,000,000
15,500,250
Milford
Exempt
Village
School
District
,
GO,
2022,
4%,
12/01/47
.............................................
1,200,000
1,353,868
GO,
2022,
4%,
12/01/51
.............................................
1,350,000
1,518,155
New
Albany
Community
Authority
,
Revenue,
2012
C,
Refunding,
5%,
10/01/23
..............................
1,100,000
1,124,857
Revenue,
2012
C,
Refunding,
5%,
10/01/24
..............................
1,250,000
1,280,101
New
Albany
Plain
Local
School
District
,
GO
,
2013
,
Pre-Refunded
,
4
%
,
12/01/49
....
10,000,000
10,240,570
Northeast
Ohio
Medical
University
,
Revenue,
2021
A,
Refunding,
3%,
12/01/23
..............................
75,000
76,694
Revenue,
2021
A,
Refunding,
5%,
12/01/25
..............................
125,000
138,076
Revenue,
2021
A,
Refunding,
5%,
12/01/27
..............................
100,000
114,760
Revenue,
2021
A,
Refunding,
5%,
12/01/29
..............................
110,000
129,297
Revenue,
2021
A,
Refunding,
3%,
12/01/40
..............................
500,000
489,295
Revenue,
2021
A,
Refunding,
4%,
12/01/45
..............................
450,000
483,172
Northeast
Ohio
Regional
Sewer
District
,
Revenue,
2014,
Pre-Refunded,
5%,
11/15/32
.............................
5,500,000
6,051,210
Revenue,
2014,
Pre-Refunded,
4%,
11/15/49
.............................
2,260,000
2,423,470
Revenue,
2014,
Pre-Refunded,
4%,
11/15/49
.............................
1,295,000
1,386,882
Revenue,
2014,
4%,
11/15/49
........................................
2,445,000
2,569,495
Revenue,
2017,
Refunding,
4%,
11/15/43
................................
10,000,000
11,228,289
Revenue,
2019,
Refunding,
3%,
11/15/35
................................
4,500,000
4,797,308
Northeastern
Local
School
District
,
GO,
2018,
AGMC
Insured,
5.25%,
12/01/45
..............................
5,420,000
6,555,517
GO,
2018,
AGMC
Insured,
4%,
12/01/55
................................
5,000,000
5,475,347
Northwest
Local
School
District
,
GO
,
2015
,
Pre-Refunded
,
5
%
,
12/01/45
..........
3,760,000
4,010,885
Norwood
City
School
District
,
GO,
2017
A,
Pre-Refunded,
5%,
11/01/46
...............................
5,000,000
5,727,908
GO,
2017
A,
Pre-Refunded,
5.25%,
11/01/51
.............................
7,645,000
8,835,029
Oakwood
City
School
District
,
GO
,
2019
,
4
%
,
12/01/48
.......................
6,340,000
7,101,649
c
Ohio
Air
Quality
Development
Authority
,
Ohio
Valley
Electric
Corp.,
Revenue,
2009
B,
Mandatory
Put,
1.375%,
11/01/24
...
1,875,000
1,831,909
Ohio
Valley
Electric
Corp.,
Revenue,
2009
C,
Mandatory
Put,
1.5%,
11/04/25
.....
2,000,000
1,938,597
Ohio
Center
Local
Government
Capital
Asset
Financing
Program
,
GO
,
2003
,
Pre-
Refunded
,
AGMC
Insured
,
5.25
%
,
12/01/23
..............................
235,000
235,831
Ohio
Higher
Educational
Facility
Commission
,
Case
Western
Reserve
University,
Revenue,
2016,
Refunding,
5%,
12/01/40
.....
6,000,000
6,860,267
Denison
University,
Revenue,
2012,
Refunding,
5%,
11/01/26
.................
1,445,000
1,455,528
Denison
University,
Revenue,
2021,
3%,
11/01/50
.........................
4,250,000
4,283,284
John
Carroll
University,
Revenue,
2022,
Refunding,
4%,
10/01/42
..............
5,000,000
5,452,838
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Ohio
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
121
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Ohio
(continued)
Ohio
Higher
Educational
Facility
Commission,
(continued)
John
Carroll
University,
Revenue,
2022,
Refunding,
4%,
10/01/47
..............
$
15,960,000
$
17,227,538
John
Carroll
University,
Revenue,
2022,
Refunding,
4%,
10/01/52
..............
16,000,000
17,183,176
Judson
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
12/01/42
...........
1,540,000
1,732,431
Judson
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
12/01/45
...........
1,360,000
1,522,142
Judson
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
12/01/50
...........
2,900,000
3,238,844
Kenyon
College,
Revenue,
2016,
Refunding,
5%,
7/01/42
...................
10,500,000
11,860,881
Kenyon
College,
Revenue,
2017,
5%,
7/01/42
............................
1,250,000
1,433,929
Kenyon
College,
Revenue,
2017,
4%,
7/01/47
............................
5,000,000
5,390,632
Otterbein
Homes
Obligated
Group,
Revenue,
2021
B,
Refunding,
4%,
7/01/46
....
1,085,000
1,186,577
Otterbein
University,
Revenue,
2022
A,
Refunding,
4%,
12/01/37
..............
1,050,000
1,142,074
Otterbein
University,
Revenue,
2022
A,
Refunding,
4%,
12/01/38
..............
1,055,000
1,144,149
Otterbein
University,
Revenue,
2022
A,
Refunding,
4%,
12/01/39
..............
1,105,000
1,195,889
Otterbein
University,
Revenue,
2022
A,
Refunding,
4%,
12/01/40
..............
1,225,000
1,324,385
Otterbein
University,
Revenue,
2022
A,
Refunding,
4%,
12/01/41
..............
1,275,000
1,373,948
Otterbein
University,
Revenue,
2022
A,
Refunding,
4%,
12/01/46
..............
1,975,000
2,112,982
University
of
Dayton,
Revenue,
2018
A,
4%,
12/01/43
.......................
11,885,000
13,016,735
University
of
Dayton,
Revenue,
2020,
Refunding,
5%,
2/01/28
................
150,000
176,251
University
of
Dayton,
Revenue,
2020,
Refunding,
5%,
2/01/29
................
415,000
496,985
University
of
Dayton,
Revenue,
2020,
Refunding,
5%,
2/01/30
................
400,000
487,250
University
of
Dayton,
Revenue,
2020,
Refunding,
5%,
2/01/31
................
550,000
666,631
University
of
Dayton,
Revenue,
2020,
Refunding,
5%,
2/01/32
................
340,000
411,183
University
of
Dayton,
Revenue,
2020,
Refunding,
5%,
2/01/33
................
130,000
157,052
University
of
Dayton,
Revenue,
2020,
Refunding,
5%,
2/01/34
................
500,000
603,519
University
of
Dayton,
Revenue,
2020,
Refunding,
5%,
2/01/35
................
1,000,000
1,205,775
University
of
Dayton,
Revenue,
2020,
Refunding,
4%,
2/01/36
................
900,000
1,010,104
University
of
Dayton,
Revenue,
2020,
Refunding,
3%,
2/01/37
................
1,335,000
1,380,945
University
of
Dayton,
Revenue,
2020,
Refunding,
4%,
2/01/39
................
480,000
534,713
University
of
Dayton,
Revenue,
2020,
Refunding,
3%,
2/01/40
................
500,000
505,559
University
of
Dayton,
Revenue,
2020,
Refunding,
4%,
2/01/41
................
250,000
277,678
University
of
Dayton,
Revenue,
2020,
Refunding,
3%,
2/01/42
................
325,000
325,228
Ohio
Housing
Finance
Agency
,
Revenue
,
2020
B
,
GNMA
Insured
,
2.1
%
,
9/01/35
....
565,000
545,882
Ohio
State
University
(The)
,
Revenue
,
2014
A
,
4
%
,
12/01/30
...................
4,325,000
4,637,021
Ohio
Turnpike
&
Infrastructure
Commission
,
Revenue,
2018
A,
5%,
2/15/43
........................................
33,350,000
39,201,007
Revenue,
Junior
Lien,
2013
A-1,
Refunding,
5.25%,
2/15/33
..................
4,200,000
4,373,521
Revenue,
Junior
Lien,
2013
A-2,
BAM
Insured,
Zero
Cpn
.,
2/15/38
.............
3,665,000
2,354,336
Revenue,
Junior
Lien,
2013
A-2,
Zero
Cpn
.,
2/15/43
........................
10,485,000
5,490,382
b
Revenue,
Junior
Lien,
2022
A,
Refunding,
5%,
2/15/39
......................
5,000,000
6,164,516
Ohio
University
,
Revenue
,
2017
A
,
Refunding
,
5
%
,
12/01/44
...................
7,000,000
7,974,733
Ohio
Water
Development
Authority
,
Revenue,
2021
A,
5%,
12/01/36
.......................................
2,000,000
2,542,212
Revenue,
2021
A,
5%,
12/01/37
.......................................
1,750,000
2,223,758
Revenue,
2021
A,
5%,
12/01/38
.......................................
2,750,000
3,484,801
Revenue,
2021
A,
5%,
12/01/39
.......................................
1,500,000
1,897,077
Water
Pollution
Control
Loan
Fund,
Revenue,
2019
B,
Refunding,
5%,
12/01/44
...
15,000,000
18,340,022
Water
Pollution
Control
Loan
Fund,
Revenue,
2020
A,
5%,
6/01/33
.............
7,250,000
9,056,367
Water
Pollution
Control
Loan
Fund,
Revenue,
2020
A,
5%,
12/01/39
............
5,000,000
6,186,865
Water
Pollution
Control
Loan
Fund,
Revenue,
2020
B,
4%,
12/01/37
............
14,160,000
16,524,013
Olentangy
Local
School
District
,
GO,
2016,
4%,
12/01/46
.............................................
15,235,000
16,331,943
GO,
2020
A,
3%,
12/01/38
...........................................
500,000
524,472
Perrysburg
Exempted
Village
School
District
,
GO
,
2015
,
5
%
,
12/01/38
............
3,225,000
3,543,465
Princeton
City
School
District
,
GO,
2014,
Pre-Refunded,
5%,
12/01/39
.................................
12,000,000
13,219,230
GO,
2014,
Refunding,
Zero
Cpn
.,
12/01/40
...............................
6,000,000
3,709,211
GO,
2014,
Refunding,
Zero
Cpn
.,
12/01/41
...............................
6,000,000
3,594,019
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Ohio
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
122
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Ohio
(continued)
Reading
Community
City
School
District
,
GO
,
2016
A
,
5
%
,
11/01/46
.............
$
2,000,000
$
2,159,792
Riverside
Local
School
District
,
GO
,
2017
A
,
Pre-Refunded
,
BAM
Insured
,
5
%
,
10/01/47
........................................................
5,000,000
5,386,489
South-Western
City
School
District
,
GO
,
2019
A
,
4
%
,
12/01/48
.................
3,500,000
3,911,526
Springboro
Community
City
School
District
,
GO,
2007,
Refunding,
AGMC
Insured,
5.25%,
12/01/27
.....................
5,175,000
6,133,917
GO,
2007,
Refunding,
AGMC
Insured,
5.25%,
12/01/28
.....................
2,000,000
2,417,921
State
of
Ohio
,
GO,
2017
A,
5%,
3/15/36
............................................
5,000,000
5,359,426
GO,
2018
A,
5%,
6/15/38
............................................
10,000,000
11,285,312
GO,
2019
A,
5%,
5/01/36
............................................
11,000,000
12,798,904
GO,
2019
A,
5%,
6/15/38
............................................
6,500,000
7,882,778
GO,
2021
A,
5%,
5/01/40
............................................
2,675,000
3,350,974
GO,
2021
A,
5%,
6/15/41
............................................
2,380,000
2,984,089
GO,
V,
5%,
5/01/33
................................................
1,000,000
1,198,011
GO,
V,
5%,
5/01/34
................................................
4,000,000
4,788,565
GO,
W,
5%,
5/01/32
................................................
1,035,000
1,290,028
GO,
W,
5%,
5/01/33
................................................
1,600,000
1,992,295
GO,
W,
5%,
5/01/35
................................................
1,125,000
1,396,130
Revenue,
2021
A,
5%,
2/01/31
........................................
2,900,000
3,672,041
Cleveland
Clinic
Health
System
Obligated
Group,
Revenue,
2017
A,
Refunding,
3.25%,
1/01/35
..................................................
10,000,000
10,607,470
Cleveland
Clinic
Health
System
Obligated
Group,
Revenue,
2021
B,
Refunding,
5%,
1/01/33
........................................................
2,415,000
3,064,160
Cleveland
Clinic
Health
System
Obligated
Group,
Revenue,
2021
B,
Refunding,
5%,
1/01/34
........................................................
2,425,000
3,073,594
Department
of
Administrative
Services,
Revenue,
2021
A,
5%,
4/01/38
..........
1,000,000
1,248,570
Department
of
Administrative
Services,
Revenue,
2021
A,
5%,
4/01/39
..........
1,000,000
1,246,167
Department
of
Administrative
Services,
Revenue,
2021
A,
5%,
4/01/40
..........
1,110,000
1,380,872
Department
of
Administrative
Services,
Revenue,
2021
A,
5%,
4/01/41
..........
750,000
931,600
Premier
Health
Partners
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/15/37
1,000,000
1,101,219
Premier
Health
Partners
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/15/39
875,000
960,596
University
Hospitals
Health
System,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
3%,
1/15/45
............................................
5,000,000
4,931,588
d
Summit
County
Development
Finance
Authority
,
City
of
Akron
,
Revenue
,
2022
,
4
%
,
5/15/46
......................................................
5,585,000
5,997,845
Switzerland
of
Ohio
Local
School
District
,
GO
,
2013
,
Pre-Refunded
,
4
%
,
12/01/37
...
5,500,000
5,704,840
Sycamore
Community
City
School
District
,
GO
,
2020
,
4
%
,
12/01/45
.............
6,500,000
7,385,191
Sylvania
City
School
District
,
GO
,
2015
,
Refunding
,
BAM
Insured
,
5
%
,
12/01/36
....
9,700,000
10,691,114
Three
Rivers
Local
School
District
,
GO
,
2014
,
Refunding
,
5
%
,
12/01/39
...........
5,885,000
6,404,461
Toledo
City
School
District
,
GO
,
2012
B
,
Pre-Refunded
,
5
%
,
12/01/32
............
7,830,000
8,076,578
Toledo-Lucas
County
Port
Authority
,
Revenue,
2021
A,
2%,
11/15/31
.......................................
430,000
401,121
Revenue,
2021
A,
3%,
5/15/51
........................................
1,160,000
1,092,641
ParkUToledo
,
Inc.,
Revenue,
2021,
4%,
1/01/46
...........................
1,625,000
1,701,680
ParkUToledo
,
Inc.,
Revenue,
2021,
4%,
1/01/51
...........................
2,840,000
2,961,952
ParkUToledo
,
Inc.,
Revenue,
2021,
4%,
1/01/57
...........................
6,000,000
6,232,288
University
of
Akron
(The)
,
Revenue,
2015
A,
Refunding,
5%,
1/01/31
...............................
4,365,000
4,765,734
Revenue,
2016
A,
Refunding,
BAM
Insured,
5%,
1/01/34
....................
6,000,000
6,796,703
Revenue,
2016
A,
Refunding,
5%,
1/01/36
...............................
11,065,000
12,509,586
Revenue,
2016
A,
Refunding,
5%,
1/01/38
...............................
13,225,000
14,922,168
Revenue,
2018
A,
Refunding,
5%,
1/01/42
...............................
5,725,000
6,756,359
University
of
Cincinnati
,
Revenue,
2013
C,
Pre-Refunded,
5%,
6/01/39
............................
6,255,000
6,678,000
Revenue,
2018
A,
Refunding,
4%,
6/01/48
...............................
10,000,000
10,964,259
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Ohio
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
123
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Ohio
(continued)
Upper
Arlington
City
School
District
,
GO
,
2018
A
,
5
%
,
12/01/48
.................
$
13,000,000
$
15,537,859
Village
of
Bluffton
,
Blanchard
Valley
Health
System
Obligated
Group,
Revenue,
2017,
Refunding,
4%,
12/01/33
.......................................................
1,655,000
1,812,399
Blanchard
Valley
Health
System
Obligated
Group,
Revenue,
2017,
Refunding,
4%,
12/01/34
.......................................................
1,900,000
2,077,479
Warren
County
Port
Authority
,
Ohio
Communities
Accelerator
Fund,
Revenue,
2021
C,
4%,
12/01/41
..........
2,075,000
2,113,166
Ohio
Communities
Accelerator
Fund,
Revenue,
2021
C,
4%,
12/01/55
..........
3,500,000
3,504,986
Ohio
Communities
Accelerator
Fund,
Revenue,
2021
D,
5%,
12/01/46
..........
3,895,000
4,084,389
Ohio
Communities
Accelerator
Fund,
Revenue,
2021
H,
4%,
12/01/41
..........
570,000
578,722
Ohio
Communities
Accelerator
Fund,
Revenue,
2021
H,
4%,
12/01/53
..........
1,375,000
1,362,709
Warren
County
Port
Authority
Ohio
Communities
Accelerator
Fund,
Revenue,
2020
D-1,
Refunding,
3%,
12/01/30
.......................................
525,000
506,119
Warren
County
Port
Authority
Ohio
Communities
Accelerator
Fund,
Revenue,
2020
D-1,
Refunding,
4%,
12/01/40
.......................................
1,390,000
1,390,949
Warren
County
Port
Authority
Ohio
Communities
Accelerator
Fund,
Revenue,
2020
D-1,
Refunding,
4%,
12/01/52
.......................................
1,930,000
1,850,724
Warrensville
Heights
City
School
District
,
GO,
2019
A,
Pre-Refunded,
BAM
Insured,
5%,
12/01/44
.....................
460,000
506,080
GO,
2019
A,
BAM
Insured,
5%,
12/01/44
................................
190,000
206,344
GO,
2019
A,
Pre-Refunded,
BAM
Insured,
5.25%,
12/01/55
..................
1,740,000
1,926,008
West
Carrollton
City
School
District
,
GO,
2020
A,
3%,
12/01/44
...........................................
2,540,000
2,608,137
GO,
2020
A,
3%,
12/01/49
...........................................
1,645,000
1,680,570
GO,
2020
A,
4%,
12/01/56
...........................................
3,500,000
3,779,847
Westerville
City
School
District
,
GO
,
2006
,
Refunding
,
XLCA
Insured
,
5
%
,
12/01/27
..
3,820,000
4,460,701
Willoughby-Eastlake
City
School
District
,
GO
,
2016
,
Pre-Refunded
,
5
%
,
12/01/46
...
10,000,000
11,324,170
Winton
Woods
City
School
District
,
GO
,
2017
,
Refunding
,
4
%
,
11/01/43
...........
7,000,000
7,655,433
Wright
State
University
,
Revenue
,
2021
A
,
Refunding
,
BAM
Insured
,
5
%
,
5/01/31
...
1,000,000
1,248,196
Xenia
Community
School
District
,
GO
,
2014
,
Pre-Refunded
,
5
%
,
12/01/40
.........
7,285,000
8,014,771
1,481,315,743
South
Carolina
0.5%
South
Carolina
Jobs-Economic
Development
Authority
,
a
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
3,200,000
2,994,402
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
3,200,000
2,991,060
a
South
Carolina
State
Housing
Finance
&
Development
Authority
,
Garden
Oaks
LP
,
Revenue
,
144A,
2021
A
,
4.2
%
,
12/01/39
................................
3,200,000
2,979,422
8,964,884
Tennessee
0.1%
c
Tennessee
Energy
Acquisition
Corp.
,
Revenue
,
2021
A
,
Mandatory
Put
,
5
%
,
11/01/31
1,500,000
1,805,607
Texas
0.7%
a
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
4,300,000
3,989,038
Lake
Houston
Redevelopment
Authority
,
City
of
Houston
Reinvestment
Zone
No.
10,
Revenue,
2021,
Refunding,
3%,
9/01/38
300,000
293,352
City
of
Houston
Reinvestment
Zone
No.
10,
Revenue,
2021,
Refunding,
3%,
9/01/47
1,000,000
938,986
a
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
A-2
,
5
%
,
12/01/52
............
6,000,000
6,019,349
11,240,725
Washington
0.2%
a
Washington
State
Housing
Finance
Commission
,
Madison
at
Rivers
Edge
Apartments
LLC
,
Revenue
,
144A,
2021
A
,
3.65
%
,
1/01/37
............................
3,200,000
2,993,581
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Ohio
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
124
s
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Wisconsin
0.9%
a
Public
Finance
Authority
,
Revenue,
144A,
2022,
B-1,
4%,
12/28/44
................................
$
3,100,000
$
2,986,895
Affordable
Housing
Preservation
Corp.
(The),
Revenue,
144A,
2021,
5.25%,
12/01/22
.......................................................
11,000,000
10,949,392
13,936,287
U.S.
Territories
0.5%
Puerto
Rico
0.5%
Puerto
Rico
Electric
Power
Authority
,
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/32
....................
1,000,000
1,058,983
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/34
....................
1,000,000
1,060,346
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue,
2007
N,
Refunding,
AGMC
Insured,
5.25%,
7/01/36
................
800,000
835,904
Revenue,
2007
N,
Refunding,
AGMC,
FGIC
Insured,
5.25%,
7/01/39
...........
540,000
563,057
Revenue,
CC,
Refunding,
AGMC
Insured,
5.5%,
7/01/31
....................
1,870,000
1,994,161
Revenue,
CC,
Refunding,
AGMC
Insured,
5.25%,
7/01/34
...................
800,000
838,173
Revenue,
L,
Refunding,
AGMC
Insured,
5.25%,
7/01/41
.....................
940,000
977,873
Puerto
Rico
Industrial
Tourist
Educational
Medical
&
Environmental
Control
Facilities
Financing
Authority
,
Hospital
Auxilio
Mutuo
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
7/01/33
..
440,000
534,530
Hospital
Auxilio
Mutuo
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
7/01/35
..
235,000
283,990
8,147,017
Total
U.S.
Territories
....................................................................
8,147,017
Total
Municipal
Bonds
(Cost
$1,516,506,764)
...................................
1,567,234,973
a
a
a
a
Short
Term
Investments
2.8%
Municipal
Bonds
2.8%
Ohio
2.8%
e
County
of
Allen
,
Bon
Secours
Mercy
Health,
Inc.
,
Revenue
,
2010
C
,
LOC
Bank
of
Montreal
,
Daily
VRDN
and
Put
,
0.08
%
,
6/01/34
...........................
45,600,000
45,600,000
Total
Municipal
Bonds
(Cost
$45,600,000)
......................................
45,600,000
Total
Short
Term
Investments
(Cost
$45,600,000
)
................................
45,600,000
a
Total
Investments
(Cost
$1,562,106,764)
100.0%
................................
$1,612,834,973
Other
Assets,
less
Liabilities
(0.0)%
†
...........................................
(472,535)
Net
Assets
100.0%
...........................................................
$1,612,362,438
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Ohio
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
125
See
Abbreviations
on
page
176
.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
February
28,
2022,
the
aggregate
value
of
these
securities
was
$34,881,447,
representing
2.2%
of
net
assets.
b
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).
c
The
maturity
date
shown
represents
the
mandatory
put
date.
d
A
portion
or
all
of
the
security
purchased
on
a
delayed
delivery
basis.
See
Note
1(b).
e
Variable
rate
demand
notes
(VRDNs)
are
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.
Unless
otherwise
noted,
the
coupon
rate
is
determined
based
on
factors
including
supply
and
demand,
underlying
credit,
tax
treatment,
and
current
short
term
rates.
The
coupon
rate
shown
represents
the
rate
at
period
end.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Oregon
Tax
-
Free
Income
Fund
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
126
a
Year
Ended
February
28,
Year
Ended
February
28,
2019
b
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
................................
$11.73
$12.00
$11.37
$11.30
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.23
0.26
0.30
0.16
Net
realized
and
unrealized
gains
(losses)
........................
(0.28)
(0.27)
0.64
0.07
Total
from
investment
operations
.................................
(0.05)
(0.01)
0.94
0.23
Less
distributions
from:
Net
investment
income
.......................................
(0.23)
(0.26)
(0.31)
(0.16)
Net
asset
value,
end
of
year
....................................
$11.45
$11.73
$12.00
$11.37
Total
return
e
................................................
(0.48)%
(0.07)%
8.39%
2.09%
Ratios
to
average
net
assets
f
Expenses
g
.................................................
0.80%
0.80%
0.80%
0.80%
Net
investment
income
........................................
1.93%
2.20%
2.58%
3.05%
Supplemental
data
Net
assets,
end
of
year
(000’s)
..................................
$251,006
$218,010
$162,664
$62,119
Portfolio
turnover
rate
.........................................
19.83%
18.23%
15.49%
9.09%
a
For
the
year
ended
February
29.
b
For
the
period
September
10,
2018
(effective
date)
to
February
28,
2019.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Oregon
Tax
-
Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
127
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.72
$11.99
$11.36
$11.37
$11.60
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.25
0.28
0.32
0.36
0.37
Net
realized
and
unrealized
gains
(losses)
...........
(0.28)
(0.27)
0.64
(0.01)
(0.22)
Total
from
investment
operations
....................
(0.03)
0.01
0.96
0.35
0.15
Less
distributions
from:
Net
investment
income
..........................
(0.25)
(0.28)
(0.33)
(0.36)
(0.38)
Net
asset
value,
end
of
year
.......................
$11.44
$11.72
$11.99
$11.36
$11.37
Total
return
d
...................................
(0.33)%
0.08%
8.56%
3.13%
1.29%
Ratios
to
average
net
assets
Expenses
.....................................
0.65%
e
0.65%
e
0.65%
e
0.65%
e
0.64%
Net
investment
income
...........................
2.08%
2.37%
2.73%
3.20%
3.22%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$731,732
$805,688
$866,593
$843,042
$932,929
Portfolio
turnover
rate
............................
19.83%
18.23%
15.49%
9.09%
12.63%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Oregon
Tax
-
Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
128
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.91
$12.19
$11.54
$11.55
$11.77
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.18
0.22
0.26
0.30
0.32
Net
realized
and
unrealized
gains
(losses)
...........
(0.28)
(0.29)
0.66
(0.01)
(0.22)
Total
from
investment
operations
....................
(0.10)
(0.07)
0.92
0.29
0.10
Less
distributions
from:
Net
investment
income
..........................
(0.18)
(0.21)
(0.27)
(0.30)
(0.32)
Net
asset
value,
end
of
year
.......................
$11.63
$11.91
$12.19
$11.54
$11.55
Total
return
d
...................................
(0.79)%
(0.63)%
8.05%
2.51%
0.80%
Ratios
to
average
net
assets
Expenses
.....................................
1.19%
e
1.19%
e
1.20%
e
1.20%
e
1.19%
Net
investment
income
...........................
1.50%
1.80%
2.18%
2.65%
2.67%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$72,237
$98,075
$127,898
$128,133
$175,054
Portfolio
turnover
rate
............................
19.83%
18.23%
15.49%
9.09%
12.63%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Oregon
Tax
-
Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
129
In
a
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2022
2021
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.73
$12.00
$11.37
$11.38
$11.66
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.26
0.29
0.33
0.38
0.23
Net
realized
and
unrealized
gains
(losses)
...........
(0.28)
(0.27)
0.64
(0.02)
(0.29)
Total
from
investment
operations
....................
(0.02)
0.02
0.97
0.36
(0.06)
Less
distributions
from:
Net
investment
income
..........................
(0.26)
(0.29)
(0.34)
(0.37)
(0.22)
Net
asset
value,
end
of
year
.......................
$11.45
$11.73
$12.00
$11.37
$11.38
Total
return
e
...................................
(0.12)%
0.12%
8.69%
3.24%
(0.50)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
......
0.52%
0.52%
0.53%
0.53%
0.53%
Expenses
net
of
waiver
and
payments
by
affiliates
.......
0.52%
g,h
0.52%
g,h
0.52%
g
0.52%
g
0.51%
Net
investment
income
...........................
2.21%
2.49%
2.86%
3.33%
3.35%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$26,269
$22,928
$19,823
$13,308
$13,217
Portfolio
turnover
rate
............................
19.83%
18.23%
15.49%
9.09%
12.63%
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Oregon
Tax
-
Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
130
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.73
$12.01
$11.37
$11.38
$11.61
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.26
0.29
0.33
0.37
0.39
Net
realized
and
unrealized
gains
(losses)
...........
(0.27)
(0.28)
0.65
(0.01)
(0.23)
Total
from
investment
operations
....................
(0.01)
0.01
0.98
0.36
0.16
Less
distributions
from:
Net
investment
income
..........................
(0.26)
(0.29)
(0.34)
(0.37)
(0.39)
Net
asset
value,
end
of
year
.......................
$11.46
$11.73
$12.01
$11.37
$11.38
Total
return
....................................
(0.15)%
0.09%
8.75%
3.22%
1.38%
Ratios
to
average
net
assets
Expenses
.....................................
0.55%
d
0.55%
d
0.55%
d
0.55%
d
0.54%
Net
investment
income
...........................
2.18%
2.45%
2.83%
3.30%
3.32%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$181,163
$171,322
$145,073
$107,253
$101,300
Portfolio
turnover
rate
............................
19.83
%
18.23%
15.49%
9.09%
12.63%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments,
February
28,
2022
Franklin
Oregon
Tax-Free
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
131
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
98.2%
California
0.3%
California
Municipal
Finance
Authority
,
Revenue
,
2022
A-1
,
4.25
%
,
12/01/37
.......
$
3,500,000
$
3,511,809
Florida
0.1%
a
Capital
Trust
Agency,
Inc.
,
SHI
-
Lake
Osborne
LLC
,
Revenue
,
144A,
2021
A-1
,
3.68
%
,
1/01/57
.........................................................
1,500,000
1,342,751
Illinois
0.4%
b
Metropolitan
Pier
&
Exposition
Authority
,
Revenue
,
2022
A
,
Refunding
,
4
%
,
12/15/42
.
5,000,000
5,315,274
New
Jersey
0.7%
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue,
2019
BB,
4%,
6/15/50
.......................................
500,000
531,107
Revenue,
2020
AA,
4%,
6/15/35
.......................................
1,000,000
1,098,546
Revenue,
2020
AA,
5%,
6/15/35
.......................................
1,000,000
1,188,093
Revenue,
2020
AA,
4%,
6/15/40
.......................................
2,000,000
2,173,110
Revenue,
2020
AA,
4%,
6/15/45
.......................................
1,000,000
1,076,105
Revenue,
2020
AA,
3%,
6/15/50
.......................................
1,000,000
931,408
Revenue,
2020
AA,
4%,
6/15/50
.......................................
1,000,000
1,069,967
Revenue,
2021
A,
Refunding,
5%,
6/15/33
...............................
1,250,000
1,499,341
9,567,677
New
York
0.5%
Metropolitan
Transportation
Authority
,
Revenue,
2021
A-1,
4%,
11/15/46
.....................................
800,000
863,601
Revenue,
2021
A-1,
4%,
11/15/48
.....................................
4,700,000
5,060,890
5,924,491
Oregon
92.4%
Astoria
Hospital
Facilities
Authority
,
Columbia
Lutheran
Charities
Obligated
Group,
Revenue,
2012,
Refunding,
5%,
8/01/28
........................................................
1,325,000
1,347,370
Columbia
Lutheran
Charities
Obligated
Group,
Revenue,
2016,
5%,
8/01/41
......
4,250,000
4,762,475
Columbia
Lutheran
Charities
Obligated
Group,
Revenue,
2016,
4%,
8/01/46
......
1,750,000
1,849,774
Benton
&
Polk
School
District
No.
17J
,
GO
,
2010
B
,
Zero
Cpn
.,
6/15/31
...........
1,000,000
819,643
Central
Lincoln
People's
Utility
District
JATC,
Inc.
,
Revenue
,
2016
,
5
%
,
12/01/45
....
2,900,000
3,207,778
City
of
Beaverton
,
Water,
Revenue,
2020,
5%,
4/01/35
....................................
1,675,000
2,070,763
Water,
Revenue,
2020,
5%,
4/01/36
....................................
1,760,000
2,173,930
Water,
Revenue,
2020,
5%,
4/01/37
....................................
1,850,000
2,282,767
Water,
Revenue,
2020,
5%,
4/01/38
....................................
1,940,000
2,389,547
Water,
Revenue,
2020,
5%,
4/01/39
....................................
2,040,000
2,508,333
Water,
Revenue,
2020,
5%,
4/01/40
....................................
2,140,000
2,627,197
City
of
Eugene
,
Electric
Utility
System,
Revenue,
2017,
5%,
8/01/47
........................
3,580,000
4,090,827
Electric
Utility
System,
Revenue,
2020
A,
4%,
8/01/45
......................
4,170,000
4,752,651
Electric
Utility
System,
Revenue,
2020
A,
4%,
8/01/49
......................
2,500,000
2,835,229
City
of
Forest
Grove
,
Oak
Tree
Foundation,
Inc.,
Revenue,
2017,
Refunding,
4%,
3/01/37
............
3,500,000
3,614,844
Pacific
University,
Revenue,
2015
A,
Refunding,
5%,
5/01/36
.................
2,500,000
2,734,086
Pacific
University,
Revenue,
2022
A,
Refunding,
5%,
5/01/26
.................
335,000
372,696
Pacific
University,
Revenue,
2022
A,
Refunding,
5%,
5/01/27
.................
1,195,000
1,353,085
Pacific
University,
Revenue,
2022
A,
Refunding,
5%,
5/01/29
.................
1,315,000
1,534,103
Pacific
University,
Revenue,
2022
A,
Refunding,
5%,
5/01/30
.................
1,385,000
1,638,174
Pacific
University,
Revenue,
2022
A,
Refunding,
5%,
5/01/31
.................
1,450,000
1,737,405
Pacific
University,
Revenue,
2022
A,
Refunding,
5%,
5/01/33
.................
1,600,000
1,913,857
Pacific
University,
Revenue,
2022
A,
Refunding,
4%,
5/01/34
.................
500,000
551,783
Pacific
University,
Revenue,
2022
A,
Refunding,
4%,
5/01/35
.................
490,000
539,691
Pacific
University,
Revenue,
2022
A,
Refunding,
4%,
5/01/37
.................
1,270,000
1,394,820
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Oregon
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
132
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Oregon
(continued)
City
of
Forest
Grove,
(continued)
Pacific
University,
Revenue,
2022
A,
Refunding,
4%,
5/01/38
.................
$
3,960,000
$
4,340,426
Pacific
University,
Revenue,
2022
A,
Refunding,
4%,
5/01/40
.................
1,715,000
1,871,300
City
of
Keizer
,
Special
Assessment
,
2008
,
5.2
%
,
6/01/31
......................
1,390,000
1,395,214
City
of
Portland
,
Tax
Allocation,
2012
B,
Refunding,
5%,
6/15/22
...........................
1,035,000
1,048,079
Tax
Allocation,
2012
C,
5%,
6/15/28
....................................
1,000,000
1,012,198
Tax
Allocation,
2012
C,
5%,
6/15/30
....................................
1,000,000
1,011,673
Water
System,
Revenue,
Second
Lien,
2019
A,
5%,
5/01/44
..................
5,500,000
6,712,448
City
of
Tigard
,
Water,
Revenue,
2012,
Pre-Refunded,
5%,
8/01/42
........................
15,915,000
16,203,154
Water,
Revenue,
2015,
5%,
8/01/45
....................................
23,545,000
25,921,663
Clackamas
Community
College
District
,
GO,
2017
A,
5%,
6/15/38
............................................
760,000
883,749
GO,
2017
A,
5%,
6/15/39
............................................
1,000,000
1,161,183
GO,
2017
A,
5%,
6/15/40
............................................
1,250,000
1,450,110
Clackamas
County
School
District
No.
12
North
Clackamas
,
GO,
2017
A,
Zero
Cpn
.,
6/15/40
.......................................
10,000,000
4,902,439
GO,
2017
A,
Zero
Cpn
.,
6/15/41
.......................................
17,030,000
7,958,945
GO,
2017
A,
Zero
Cpn
.,
6/15/42
.......................................
16,625,000
7,405,363
GO,
2017
B,
5%,
6/15/34
............................................
8,000,000
9,342,242
GO,
2017
B,
5%,
6/15/37
............................................
10,000,000
11,655,762
GO,
2018,
5%,
6/15/42
.............................................
1,750,000
2,082,558
Clackamas
County
School
District
No.
46
Oregon
Trail
,
GO,
Zero
Cpn
.,
6/15/37
.............................................
12,130,000
8,275,200
GO,
Zero
Cpn
.,
6/15/38
.............................................
12,495,000
8,238,897
Clackamas
County
School
District
No.
7J
Lake
Oswego
,
GO
,
2005
,
Refunding
,
AGMC
Insured
,
5.25
%
,
6/01/25
.............................................
3,075,000
3,461,107
Clackamas
River
Water
,
Revenue
,
2016
,
5
%
,
11/01/43
.......................
1,970,000
2,148,179
Coos
County
School
District
No.
13
North
Bend
,
GO
,
2002
,
AGMC
Insured
,
5
%
,
6/15/22
.........................................................
55,000
55,196
Coos
County
School
District
No.
9
Coos
Bay
,
GO
,
2018
,
5
%
,
6/15/43
............
5,005,000
5,929,349
County
of
Crook
,
GO
,
2022
,
Zero
Cpn
.,
12/01/46
............................
15,000,000
14,174,652
County
of
Yamhill
,
George
Fox
University,
Revenue,
2021,
Refunding,
4%,
12/01/24
..............
750,000
797,406
George
Fox
University,
Revenue,
2021,
Refunding,
4%,
12/01/28
..............
875,000
978,390
George
Fox
University,
Revenue,
2021,
Refunding,
4%,
12/01/31
..............
990,000
1,134,532
George
Fox
University,
Revenue,
2021,
Refunding,
4%,
12/01/36
..............
1,350,000
1,533,742
George
Fox
University,
Revenue,
2021,
Refunding,
4%,
12/01/41
..............
1,505,000
1,687,798
George
Fox
University,
Revenue,
2021,
Refunding,
4%,
12/01/46
..............
1,005,000
1,108,927
George
Fox
University,
Revenue,
2021,
Refunding,
4%,
12/01/51
..............
2,830,000
3,107,295
Linfield
University,
Revenue,
2020
A,
Refunding,
5%,
10/01/40
................
7,010,000
8,253,871
Crook
County
School
District
,
GO,
2013,
Pre-Refunded,
5%,
6/15/34
..................................
4,475,000
4,703,868
GO,
2013,
Pre-Refunded,
5%,
6/15/37
..................................
8,090,000
8,503,753
Deschutes
County
Hospital
Facilities
Authority
,
St.
Charles
Health
System
Obligated
Group,
Revenue,
2020
A,
4%,
1/01/49
......
5,160,000
5,781,849
St.
Charles
Health
System,
Inc.,
Revenue,
2016
A,
Refunding,
5%,
1/01/48
......
8,440,000
9,330,073
Hospital
Facilities
Authority
of
Multnomah
County
Oregon
,
Terwilliger
Plaza,
Inc.
Obligated
Group
,
Revenue
,
2012
,
Refunding
,
5
%
,
12/01/29
..................
3,690,000
3,747,256
Jackson
County
School
District
No.
5
Ashland
,
GO,
2019,
5%,
6/15/42
.............................................
5,970,000
7,214,636
GO,
2019,
5%,
6/15/43
.............................................
6,495,000
7,833,468
GO,
2019,
5%,
6/15/44
.............................................
6,000,000
7,225,598
Jackson
County
School
District
No.
6
Central
Point
,
GO,
2019
B,
Zero
Cpn
.,
6/15/40
.......................................
705,000
411,523
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Oregon
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
133
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Oregon
(continued)
Jackson
County
School
District
No.
6
Central
Point,
(continued)
GO,
2019
B,
Zero
Cpn
.,
6/15/41
.......................................
$
710,000
$
397,817
GO,
2019
B,
Zero
Cpn
.,
6/15/42
.......................................
610,000
328,302
GO,
2019
B,
Zero
Cpn
.,
6/15/43
.......................................
820,000
424,114
GO,
2019
B,
Zero
Cpn
.,
6/15/44
.......................................
1,115,000
553,483
GO,
2019
B,
Zero
Cpn
.,
6/15/45
.......................................
985,000
470,676
GO,
2019
B,
Zero
Cpn
.,
6/15/46
.......................................
1,190,000
544,173
GO,
2019
B,
Zero
Cpn
.,
6/15/47
.......................................
1,170,000
514,716
GO,
2019
B,
Zero
Cpn
.,
6/15/48
.......................................
1,320,000
558,678
GO,
2019
B,
Zero
Cpn
.,
6/15/49
.......................................
1,270,000
517,157
Jefferson
County
School
District
No.
509J
,
GO,
2013,
Pre-Refunded,
5%,
6/15/30
..................................
3,000,000
3,153,431
GO,
2013,
Pre-Refunded,
5%,
6/15/31
..................................
1,410,000
1,482,113
Klamath
County
School
District
,
GO,
2013,
Pre-Refunded,
5%,
6/15/29
..................................
1,155,000
1,214,071
GO,
2013,
Pre-Refunded,
5%,
6/15/30
..................................
1,095,000
1,151,002
GO,
2013,
Pre-Refunded,
5%,
6/15/31
..................................
1,000,000
1,051,144
Klamath
Falls
Intercommunity
Hospital
Authority
,
Sky
Lakes
Medical
Center,
Inc.
,
Revenue
,
2016
,
Refunding
,
5
%
,
9/01/46
.................................
1,000,000
1,122,099
Lane
&
Douglas
Counties
School
District
No.
28J
Fern
Ridge
,
GO,
2014
A,
Refunding,
5%,
6/15/30
...................................
3,175,000
3,616,687
GO,
2014
A,
Pre-Refunded,
5%,
6/15/33
................................
2,115,000
2,431,225
GO,
2014
A,
Pre-Refunded,
5%,
6/15/36
................................
2,000,000
2,299,031
Lebanon
Rural
Fire
Protection
District
,
GO
,
2020
,
BAM
Insured
,
4
%
,
6/15/45
.......
5,000,000
5,343,457
Marion
&
Linn
Counties
School
District
No.
14J
Jefferson
,
GO
,
2017
B
,
5
%
,
6/15/41
.
1,360,000
1,557,037
Marion
County
School
District
No.
103
Woodburn
,
GO,
2015,
Pre-Refunded,
5%,
6/15/33
..................................
2,930,000
3,269,690
GO,
2015,
Pre-Refunded,
5%,
6/15/34
..................................
3,200,000
3,570,993
GO,
2015,
Pre-Refunded,
5%,
6/15/35
..................................
2,075,000
2,315,566
Medford
Hospital
Facilities
Authority
,
Asante
Health
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
8/15/45
4,500,000
5,358,507
Rogue
Valley
Manor,
Revenue,
2013
A,
Refunding,
5%,
10/01/33
..............
1,500,000
1,565,165
Rogue
Valley
Manor,
Revenue,
2013
A,
Refunding,
5%,
10/01/42
..............
9,420,000
9,795,998
Metro
,
County
of
Multnomah,
Revenue,
2017,
5%,
6/15/42
........................
7,500,000
8,643,407
County
of
Multnomah,
Revenue,
2017,
5%,
6/15/47
........................
10,950,000
12,430,732
Multnomah
&
Clackamas
Counties
School
District
No.
10JT
Gresham-Barlow
,
GO,
2017
B,
5%,
6/15/37
............................................
7,885,000
9,181,894
GO,
2019
A,
Zero
Cpn
.,
6/15/39
.......................................
9,500,000
5,469,946
Multnomah
County
School
District
No.
40
,
GO,
2012
B,
Zero
Cpn
.,
6/15/24
.......................................
1,640,000
1,589,922
GO,
2012
B,
Zero
Cpn
.,
6/15/25
.......................................
1,325,000
1,260,210
GO,
2012
B,
Zero
Cpn
.,
6/15/26
.......................................
2,585,000
2,409,598
GO,
2012
B,
Zero
Cpn
.,
6/15/27
.......................................
2,655,000
2,420,102
GO,
2012
B,
Zero
Cpn
.,
6/15/28
.......................................
2,495,000
2,216,951
GO,
2012
B,
Zero
Cpn
.,
6/15/29
.......................................
2,595,000
2,246,825
GO,
2012
B,
Zero
Cpn
.,
6/15/30
.......................................
1,885,000
1,588,501
GO,
2012
B,
Zero
Cpn
.,
6/15/31
.......................................
2,030,000
1,660,821
GO,
2012
B,
Zero
Cpn
.,
6/15/32
.......................................
2,000,000
1,592,127
Multnomah-Clackamas
Counties
Centennial
School
District
No.
28JT
,
GO,
2020,
Refunding,
4%,
6/15/38
.....................................
1,050,000
1,218,852
GO,
2020,
Refunding,
4%,
6/15/39
.....................................
2,250,000
2,597,725
GO,
2020,
Refunding,
5%,
6/15/50
.....................................
24,655,000
29,957,726
Oregon
City
School
District
No.
62
,
GO,
2014,
Pre-Refunded,
AGMC
Insured,
5%,
6/01/29
......................
440,000
476,678
GO,
2014,
Pre-Refunded,
AGMC
Insured,
5%,
6/01/29
......................
560,000
607,332
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Oregon
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
134
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Oregon
(continued)
Oregon
City
School
District
No.
62,
(continued)
GO,
2014,
Pre-Refunded,
AGMC
Insured,
5%,
6/01/34
......................
$
780,000
$
845,020
GO,
2014,
Pre-Refunded,
AGMC
Insured,
5%,
6/01/34
......................
990,000
1,073,677
GO,
2014,
Pre-Refunded,
AGMC
Insured,
5%,
6/01/39
......................
550,000
595,847
GO,
2014,
Pre-Refunded,
AGMC
Insured,
5%,
6/01/39
......................
700,000
759,166
GO,
2018
B,
Refunding,
5%,
6/15/49
...................................
20,000,000
23,732,112
Oregon
Health
&
Science
University
,
Oregon
Health
&
Science
University
Obligated
Group
,
Revenue
,
2017
A
,
5
%
,
7/01/42
..................................
10,000,000
11,708,232
Oregon
State
Facilities
Authority
,
a
CHNW
Clifton
House
LLC,
Revenue,
144A,
A,
4%,
10/01/26
.................
1,405,000
1,434,098
a
CHNW
Clifton
House
LLC,
Revenue,
144A,
A,
5%,
10/01/36
.................
1,670,000
1,742,764
a
CHNW
Clifton
House
LLC,
Revenue,
144A,
A,
5%,
10/01/48
.................
4,000,000
4,153,899
Legacy
Health
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
6/01/46
......
8,000,000
8,971,038
Providence
St.
Joseph
Health
Obligated
Group,
Revenue,
2015
C,
5%,
10/01/45
..
4,000,000
4,447,560
Samaritan
Health
Services,
Inc.
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
10/01/41
.......................................................
7,800,000
8,742,161
Samaritan
Health
Services,
Inc.
Obligated
Group,
Revenue,
2016
A,
Pre-Refunded,
5%,
10/01/46
...................................................
220,000
253,300
Samaritan
Health
Services,
Inc.
Obligated
Group,
Revenue,
2016
A,
5%,
10/01/46
.
3,280,000
3,659,682
Samaritan
Health
Services,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
10/01/40
.......................................................
8,125,000
9,690,363
Willamette
University,
Revenue,
2016
B,
Refunding,
5%,
10/01/40
.............
1,950,000
2,174,751
Willamette
University,
Revenue,
2021
A,
Refunding,
4%,
10/01/51
.............
35,120,000
37,685,881
Oregon
State
Lottery
,
Revenue,
2013
A,
Pre-Refunded,
5%,
4/01/28
............................
5,800,000
6,055,803
Revenue,
2013
A,
Pre-Refunded,
5%,
4/01/32
............................
5,000,000
5,220,520
Oregon
State
University
,
Revenue
,
2015
A
,
5
%
,
4/01/45
......................
12,500,000
13,745,695
Port
of
Portland
,
Airport,
Revenue,
Twenty-Eight,
5%,
7/01/29
.............................
6,455,000
7,711,000
Airport,
Revenue,
Twenty-Eight,
5%,
7/01/52
.............................
10,000,000
12,109,613
Airport,
Revenue,
Twenty-Five
A,
5%,
7/01/49
............................
12,425,000
14,710,639
Airport,
Revenue,
Twenty-Five
B,
5%,
7/01/44
............................
16,250,000
19,019,653
Airport,
Revenue,
Twenty-Four
A,
5%,
7/01/47
............................
4,700,000
5,353,462
Airport,
Revenue,
Twenty-Four
B,
5%,
7/01/47
............................
9,395,000
10,608,695
Airport,
Revenue,
Twenty-Seven
A,
5%,
7/01/38
...........................
10,000,000
11,974,313
Airport,
Revenue,
Twenty-Six
A,
Refunding,
5%,
7/01/33
....................
1,150,000
1,415,066
Airport,
Revenue,
Twenty-Six
A,
Refunding,
4%,
7/01/37
....................
600,000
678,492
Airport,
Revenue,
Twenty-Six
A,
Refunding,
4%,
7/01/40
....................
500,000
560,391
Airport,
Revenue,
Twenty-Six
B,
Refunding,
5%,
7/01/37
....................
800,000
973,882
Airport,
Revenue,
Twenty-Six
B,
Refunding,
5%,
7/01/40
....................
675,000
814,592
Airport,
Revenue,
Twenty-Six
C,
Refunding,
5%,
7/01/28
....................
1,300,000
1,526,435
Salem
Hospital
Facility
Authority
,
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2018,
5%,
5/15/33
.............
555,000
618,824
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2018,
5%,
5/15/38
.............
500,000
554,316
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2018,
5%,
5/15/43
.............
2,250,000
2,480,190
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2018,
5%,
5/15/48
.............
2,700,000
2,962,649
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2018,
5%,
5/15/53
.............
1,000,000
1,095,190
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
5%,
5/15/23
....
105,000
108,952
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
5%,
5/15/24
....
110,000
116,779
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
5%,
5/15/25
....
130,000
140,815
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
5%,
5/15/26
....
135,000
148,664
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
5%,
5/15/27
....
260,000
290,172
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
5%,
5/15/28
....
310,000
350,647
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
5/15/29
....
260,000
280,568
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
5/15/30
....
195,000
210,404
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
5/15/31
....
200,000
215,972
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
5/15/32
....
185,000
200,304
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Oregon
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
135
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Oregon
(continued)
Salem
Hospital
Facility
Authority,
(continued)
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
5/15/40
....
$
1,540,000
$
1,653,405
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
5/15/47
....
1,000,000
1,061,074
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
5/15/57
....
1,500,000
1,569,071
Salem
Health
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
5/15/46
.......
40,500,000
45,145,634
Salem-Keizer
School
District
No.
24J
,
GO,
2009
B,
Zero
Cpn
.,
6/15/30
.......................................
8,500,000
7,133,696
GO,
2020
C,
4%,
6/15/37
............................................
5,000,000
5,765,159
Santiam
Canyon
School
District
129J
,
GO,
2019,
5%,
6/15/39
.............................................
1,000,000
1,213,831
GO,
2019,
5%,
6/15/44
.............................................
2,330,000
2,802,436
Seaside
School
District
No.
10
,
GO,
2017
B,
5%,
6/15/35
............................................
2,000,000
2,328,952
GO,
2017
B,
5%,
6/15/36
............................................
2,500,000
2,908,443
State
of
Oregon
,
GO,
2007
A,
4.7%,
8/01/42
...........................................
3,050,000
3,058,509
GO,
2015
M,
Pre-Refunded,
5%,
8/01/45
................................
3,315,000
3,724,425
GO,
2015
O,
Pre-Refunded,
5%,
8/01/40
................................
7,005,000
7,870,166
GO,
2017
A,
5%,
5/01/42
............................................
10,000,000
11,571,002
GO,
2017
H,
5%,
8/01/42
............................................
15,000,000
17,473,470
GO,
2019
A,
5%,
5/01/44
............................................
5,000,000
6,016,498
GO,
2019
G,
5%,
8/01/44
............................................
25,370,000
30,695,366
GO,
2020
E,
Refunding,
5%,
6/01/39
...................................
1,785,000
2,210,249
GO,
2020
E,
Refunding,
5%,
6/01/40
...................................
1,640,000
2,027,488
GO,
L,
Refunding,
5%,
8/01/42
........................................
3,270,000
3,809,216
Department
of
Transportation,
Revenue,
Sub.
Lien,
2019
A,
Refunding,
5%,
11/15/37
12,500,000
15,448,309
Department
of
Transportation,
Revenue,
Sub.
Lien,
2019
A,
Refunding,
5%,
11/15/42
30,000,000
36,779,172
Department
of
Transportation,
Revenue,
Sub.
Lien,
2020
A,
5%,
11/15/40
.......
25,000,000
31,207,195
Housing
&
Community
Services
Department,
Revenue,
2018
B,
2.9%,
7/01/43
....
19,150,000
19,365,554
Housing
&
Community
Services
Department,
Revenue,
2019
A,
2.9%,
7/01/43
....
13,820,000
14,002,421
Tillamook
&
Yamhill
Counties
School
District
No.
101
Nestucca
Valley
,
GO,
2018
B,
5%,
6/15/36
............................................
2,850,000
3,397,907
GO,
2018
B,
5%,
6/15/37
............................................
2,520,000
3,002,565
Tri-County
Metropolitan
Transportation
District
of
Oregon
,
Revenue,
2012
A,
Pre-Refunded,
5%,
9/01/37
............................
11,000,000
11,236,981
Revenue,
2015
A,
Pre-Refunded,
5%,
9/01/40
............................
6,000,000
6,757,550
Revenue,
2018
A,
5%,
10/01/32
.......................................
6,865,000
8,131,814
Revenue,
2018
A,
4%,
9/01/48
........................................
7,850,000
8,621,811
Revenue,
2018
A,
Pre-Refunded,
5%,
9/01/48
............................
18,505,000
21,988,792
Revenue,
Senior
Lien,
2017
A,
Pre-Refunded,
5%,
9/01/41
...................
18,650,000
21,603,602
Umatilla
County
School
District
No.
16R
Pendleton
,
GO
,
2014
A
,
Pre-Refunded
,
5
%
,
6/15/37
.........................................................
4,970,000
5,397,252
University
of
Oregon
,
Revenue,
2015
A,
5%,
4/01/45
........................................
20,000,000
21,936,192
Revenue,
2016
A,
5%,
4/01/46
........................................
11,690,000
13,109,015
Revenue,
2020
A,
5%,
4/01/50
........................................
20,000,000
24,204,078
a
Warm
Springs
Reservation
Confederated
Tribe
,
Revenue,
144A,
2019
B,
Refunding,
5%,
11/01/33
.........................
250,000
297,093
Revenue,
144A,
2019
B,
Refunding,
5%,
11/01/34
.........................
300,000
356,185
Revenue,
144A,
2019
B,
Refunding,
5%,
11/01/36
.........................
1,150,000
1,363,805
Revenue,
144A,
2019
B,
Refunding,
5%,
11/01/39
.........................
1,200,000
1,415,514
Washington
&
Clackamas
Counties
School
District
No.
23J
Tigard-Tualatin
,
GO,
2017,
5%,
6/15/36
.............................................
9,400,000
10,951,244
GO,
2017,
5%,
6/15/37
.............................................
6,000,000
6,986,857
Washington
&
Multnomah
Counties
School
District
No.
48J
Beaverton
,
GO,
2014
B,
Pre-Refunded,
5%,
6/15/33
................................
8,000,000
8,687,729
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Oregon
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
136
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Oregon
(continued)
Washington
&
Multnomah
Counties
School
District
No.
48J
Beaverton,
(continued)
GO,
2014
B,
Pre-Refunded,
5%,
6/15/34
................................
$
11,000,000
$
11,945,627
GO,
2017
D,
5%,
6/15/35
............................................
10,000,000
11,650,260
GO,
2017
D,
5%,
6/15/36
............................................
10,000,000
11,628,281
Washington
Clackamas
&
Yamhill
Counties
School
District
No.
88J
,
GO,
2018
A,
Zero
Cpn
.,
6/15/38
.......................................
2,350,000
1,366,285
GO,
2018
A,
Zero
Cpn
.,
6/15/39
.......................................
3,275,000
1,819,227
Washington
County
School
District
No.
15
Forest
Grove
,
GO,
2012
B,
Zero
Cpn
.,
6/15/29
.......................................
2,545,000
2,181,397
GO,
2012
B,
Zero
Cpn
.,
6/15/30
.......................................
2,490,000
2,070,996
GO,
2012
B,
Zero
Cpn
.,
6/15/31
.......................................
3,140,000
2,531,488
Yachats
Rural
Fire
Protection
District
,
GO
,
2017
,
AGMC
Insured
,
5
%
,
6/15/47
......
1,600,000
1,828,539
1,166,504,655
South
Carolina
0.6%
South
Carolina
Jobs-Economic
Development
Authority
,
a
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
2,500,000
2,339,376
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
2,500,000
2,336,766
a
South
Carolina
State
Housing
Finance
&
Development
Authority
,
Garden
Oaks
LP
,
Revenue
,
144A,
2021
A
,
4.2
%
,
12/01/39
................................
3,000,000
2,793,209
7,469,351
Texas
0.6%
a
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
3,300,000
3,061,355
Lake
Houston
Redevelopment
Authority
,
City
of
Houston
Reinvestment
Zone
No.
10,
Revenue,
2021,
Refunding,
5%,
9/01/30
250,000
297,426
City
of
Houston
Reinvestment
Zone
No.
10,
Revenue,
2021,
Refunding,
5%,
9/01/31
250,000
300,909
a
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
A-2
,
5
%
,
12/01/52
............
4,200,000
4,213,544
7,873,234
Washington
0.2%
a
Washington
State
Housing
Finance
Commission
,
Madison
at
Rivers
Edge
Apartments
LLC
,
Revenue
,
144A,
2021
A
,
3.65
%
,
1/01/37
............................
2,500,000
2,338,735
Wisconsin
0.9%
a
Public
Finance
Authority
,
Revenue,
144A,
2022,
B-1,
4%,
12/28/44
................................
2,400,000
2,312,434
Affordable
Housing
Preservation
Corp.
(The),
Revenue,
144A,
2021,
5.25%,
12/01/22
.......................................................
8,600,000
8,560,434
10,872,868
U.S.
Territories
1.5%
Puerto
Rico
1.5%
Children's
Trust
Fund
,
Revenue
,
2002
,
5.625
%
,
5/15/43
......................
6,000,000
6,113,701
Puerto
Rico
Electric
Power
Authority
,
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/32
....................
1,300,000
1,376,677
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/34
....................
1,000,000
1,060,346
c
Revenue,
WW-RSA-1,
5.25%,
7/01/33
..................................
7,040,000
7,295,200
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue,
2007
N,
Refunding,
AGMC
Insured,
5.25%,
7/01/36
................
1,100,000
1,149,368
Revenue,
L,
Refunding,
NATL
Insured,
5.25%,
7/01/35
......................
1,000,000
1,057,946
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Oregon
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
137
s
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
U.S.
Territories
(continued)
Puerto
Rico
(continued)
Puerto
Rico
Highway
&
Transportation
Authority,
(continued)
Revenue,
L,
Refunding,
AGMC
Insured,
5.25%,
7/01/41
.....................
$
400,000
$
416,116
18,469,354
Total
U.S.
Territories
....................................................................
18,469,354
Total
Municipal
Bonds
(Cost
$1,191,746,771)
...................................
1,239,190,199
a
a
a
a
a
Total
Investments
(Cost
$1,191,746,771)
98.2%
..................................
$1,239,190,199
Other
Assets,
less
Liabilities
1.8%
.............................................
23,216,914
Net
Assets
100.0%
...........................................................
$1,262,407,113
See
Abbreviations
on
page
176
.
a
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
February
28,
2022,
the
aggregate
value
of
these
securities
was
$37,725,196,
representing
3.0%
of
net
assets.
b
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).
c
See
Note
7
regarding
credit
risk
and
defaulted
securities.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Pennsylvania
Tax-Free
Income
Fund
franklintempleton.com
Annual
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
138
a
Year
Ended
February
28,
Year
Ended
February
28,
2019
b
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
................................
$9.89
$10.11
$9.73
$9.74
Income
from
investment
operations
c
:
Net
investment
income
d
......................................
0.20
0.26
0.29
0.16
Net
realized
and
unrealized
gains
(losses)
........................
(0.25)
(0.23)
0.39
(0.01)
Total
from
investment
operations
.................................
(0.05)
0.03
0.68
0.15
Less
distributions
from:
Net
investment
income
.......................................
(0.20)
(0.25)
(0.30)
(0.16)
Net
asset
value,
end
of
year
....................................
$9.64
$9.89
$10.11
$9.73
Total
return
e
................................................
(0.56)%
0.32%
7.14%
1.59%
Ratios
to
average
net
assets
f
Expenses
g
.................................................
0.81%
0.81%
0.82%
0.83%
Net
investment
income
........................................
2.00%
2.59%
2.98%
3.40%
Supplemental
data
Net
assets,
end
of
year
(000’s)
..................................
$175,896
$146,124
$105,032
$52,673
Portfolio
turnover
rate
.........................................
36.04%
28.44%
13.61%
6.40%
a
For
the
year
ended
February
29.
b
For
the
period
September
10,
2018
(effective
date)
to
February
28,
2019.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Pennsylvania
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
139
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$9.89
$10.11
$9.73
$9.78
$10.12
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.22
0.27
0.31
0.34
0.35
Net
realized
and
unrealized
gains
(losses)
...........
(0.25)
(0.23)
0.39
(0.04)
(0.32)
Total
from
investment
operations
....................
(0.03)
0.04
0.70
0.30
0.03
Less
distributions
from:
Net
investment
income
..........................
(0.22)
(0.26)
(0.32)
(0.35)
(0.37)
Net
asset
value,
end
of
year
.......................
$9.64
$9.89
$10.11
$9.73
$9.78
Total
return
d
...................................
(0.41)%
0.47%
7.29%
3.17%
0.31%
Ratios
to
average
net
assets
Expenses
.....................................
0.66%
e
0.67%
e
0.67%
e
0.68%
e
0.66%
Net
investment
income
...........................
2.16%
2.77%
3.13%
3.55%
3.49%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$644,308
$709,450
$772,506
$784,367
$860,737
Portfolio
turnover
rate
............................
36.04%
28.44%
13.61%
6.40%
13.33%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Pennsylvania
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
140
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.02
$10.24
$9.86
$9.91
$10.24
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.16
0.22
0.26
0.30
0.30
Net
realized
and
unrealized
gains
(losses)
...........
(0.25)
(0.23)
0.39
(0.05)
(0.31)
Total
from
investment
operations
....................
(0.09)
(0.01)
0.65
0.25
(0.01)
Less
distributions
from:
Net
investment
income
..........................
(0.16)
(0.21)
(0.27)
(0.30)
(0.32)
Net
asset
value,
end
of
year
.......................
$9.77
$10.02
$10.24
$9.86
$9.91
Total
return
d
...................................
(0.95)%
(0.08)%
6.64%
2.56%
(0.15)%
Ratios
to
average
net
assets
Expenses
.....................................
1.21%
e
1.21%
e
1.22%
e
1.23%
e
1.21%
Net
investment
income
...........................
1.60%
2.21%
2.58%
3.00%
2.94%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$63,426
$104,823
$146,042
$173,240
$245,520
Portfolio
turnover
rate
............................
36.04%
28.44%
13.61%
6.40%
13.33%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Pennsylvania
Tax-Free
Income
Fund
(continued)
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The
accompanying
notes
are
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part
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financial
statements.
Annual
Report
141
a
Year
Ended
February
28,
Year
Ended
February
28,
2018
b
2022
2021
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$9.90
$10.12
$9.75
$9.80
$10.06
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.23
0.28
0.32
0.36
0.21
Net
realized
and
unrealized
gains
(losses)
...........
(0.24)
(0.22)
0.38
(0.04)
(0.25)
Total
from
investment
operations
....................
(0.01)
0.06
0.70
0.32
(0.04)
Less
distributions
from:
Net
investment
income
..........................
(0.23)
(0.28)
(0.33)
(0.37)
(0.22)
Net
asset
value,
end
of
year
.......................
$9.66
$9.90
$10.12
$9.75
$9.80
Total
return
e
...................................
(0.17)%
0.61%
7.32%
3.30%
(0.43)%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
......
0.56%
0.55%
0.55%
0.57%
0.57%
Expenses
net
of
waiver
and
payments
by
affiliates
.......
0.52%
g
0.53%
g
0.53%
g
0.54%
g
0.52%
Net
investment
income
...........................
2.29%
2.86%
3.27%
3.69%
3.63%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$5,802
$4,300
$2,905
$2,282
$2,085
Portfolio
turnover
rate
............................
36.04%
28.44%
13.61%
6.40%
13.33%
a
For
the
year
ended
February
29.
b
For
the
period
August
1,
2017
(effective
date)
to
February
28,
2018.
c
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Pennsylvania
Tax-Free
Income
Fund
(continued)
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Annual
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
142
a
Year
Ended
February
28,
2022
2021
2020
a
2019
2018
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$9.90
$10.12
$9.75
$9.80
$10.13
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.23
0.28
0.32
0.36
0.36
Net
realized
and
unrealized
gains
(losses)
...........
(0.24)
(0.23)
0.38
(0.05)
(0.31)
Total
from
investment
operations
....................
(0.01)
0.05
0.70
0.31
0.05
Less
distributions
from:
Net
investment
income
..........................
(0.23)
(0.27)
(0.33)
(0.36)
(0.38)
Net
asset
value,
end
of
year
.......................
$9.66
$9.90
$10.12
$9.75
$9.80
Total
return
....................................
(0.21)%
0.57%
7.28%
3.27%
0.51%
Ratios
to
average
net
assets
Expenses
.....................................
0.56%
d
0.56%
d
0.57%
d
0.58%
d
0.56%
Net
investment
income
...........................
2.26%
2.85%
3.23%
3.65%
3.59%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$106,979
$105,603
$98,190
$81,595
$79,153
Portfolio
turnover
rate
............................
36.04
%
28.44%
13.61%
6.40%
13.33%
a
For
the
year
ended
February
29.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Statement
of
Investments,
February
28,
2022
Franklin
Pennsylvania
Tax-Free
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
143
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
95.6%
Florida
0.7%
Capital
Trust
Agency,
Inc.
,
Kingdom
Development
Obligated
Group,
Revenue,
2021
A-1,
3.75%,
12/01/36
....
$
5,688,000
$
5,580,213
a
SHI
-
Lake
Osborne
LLC,
Revenue,
144A,
2021
A-1,
3.68%,
1/01/57
...........
1,000,000
895,167
6,475,380
Illinois
0.7%
b
Metropolitan
Pier
&
Exposition
Authority
,
Revenue,
2022
A,
Refunding,
4%,
12/15/42
..............................
2,750,000
2,923,400
Revenue,
2022
A,
Refunding,
4%,
6/15/52
...............................
2,000,000
2,095,087
State
of
Illinois
,
GO,
2021
A,
5%,
3/01/32
............................................
1,500,000
1,791,846
GO,
2021
A,
4%,
3/01/39
............................................
500,000
540,400
7,350,733
New
Jersey
0.7%
New
Jersey
Economic
Development
Authority
,
Revenue
,
2021
QQQ
,
4
%
,
6/15/46
...
1,000,000
1,073,946
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue,
2020
AA,
5%,
6/15/35
.......................................
2,000,000
2,376,186
Revenue,
2020
AA,
4%,
6/15/37
.......................................
1,000,000
1,094,029
Revenue,
2020
AA,
5%,
6/15/39
.......................................
2,240,000
2,626,819
7,170,980
New
York
1.4%
Metropolitan
Transportation
Authority
,
Revenue,
2021
A-1,
4%,
11/15/44
.....................................
7,000,000
7,589,186
Revenue,
2021
A-1,
4%,
11/15/46
.....................................
5,750,000
6,207,135
13,796,321
Pennsylvania
88.6%
Allegheny
County
Airport
Authority
,
Revenue,
2021
A,
5%,
1/01/36
........................................
10,000,000
12,014,327
Revenue,
2021
B,
5%,
1/01/36
........................................
2,735,000
3,346,718
Allegheny
County
Higher
Education
Building
Authority
,
Duquesne
University
of
the
Holy
Spirit,
Revenue,
2021
A,
Refunding,
4%,
3/01/40
.
2,115,000
2,379,457
Duquesne
University
of
the
Holy
Spirit,
Revenue,
2021
A,
Refunding,
4%,
3/01/41
.
3,000,000
3,369,659
Robert
Morris
University,
Revenue,
2017,
5%,
10/15/37
.....................
1,000,000
1,109,784
Robert
Morris
University,
Revenue,
2017,
5%,
10/15/47
.....................
1,300,000
1,418,713
Allegheny
County
Sanitary
Authority
,
Revenue
,
2018
,
5
%
,
6/01/43
...............
7,000,000
8,317,044
Allentown
Neighborhood
Improvement
Zone
Development
Authority
,
Revenue,
2022,
Refunding,
5%,
5/01/32
.................................
760,000
925,928
Revenue,
2022,
Refunding,
5%,
5/01/33
.................................
800,000
972,727
Revenue,
2022,
Refunding,
5%,
5/01/34
.................................
1,050,000
1,276,348
Revenue,
2022,
Refunding,
5%,
5/01/35
.................................
1,400,000
1,698,269
Revenue,
2022,
Refunding,
5%,
5/01/36
.................................
1,500,000
1,810,163
Revenue,
2022,
Refunding,
5%,
5/01/42
.................................
8,875,000
10,565,656
Avon
Grove
School
District
Chester
County
,
GO,
2021
A,
4%,
11/15/35
...........................................
500,000
573,351
GO,
2021
A,
4%,
11/15/36
...........................................
1,000,000
1,144,862
GO,
2021
A,
4%,
11/15/37
...........................................
1,250,000
1,424,323
GO,
2021
A,
4%,
11/15/38
...........................................
1,890,000
2,151,377
GO,
2021
A,
4%,
11/15/40
...........................................
2,700,000
3,067,884
Berks
County
Industrial
Development
Authority
,
Highlands
at
Wyomissing
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
5/15/42
........................................................
1,000,000
1,100,190
Highlands
at
Wyomissing
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
5/15/47
........................................................
600,000
656,473
Highlands
at
Wyomissing
Obligated
Group,
Revenue,
2017
C,
5%,
5/15/37
......
1,245,000
1,341,277
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Pennsylvania
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
144
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Pennsylvania
(continued)
Berks
County
Industrial
Development
Authority,
(continued)
Highlands
at
Wyomissing
Obligated
Group,
Revenue,
2018,
Refunding,
5%,
5/15/38
$
1,030,000
$
1,120,417
Highlands
at
Wyomissing
Obligated
Group,
Revenue,
2018,
Refunding,
5%,
5/15/48
1,000,000
1,078,778
Blue
Mountain
School
District
,
GO,
2021
B,
AGMC
Insured,
4%,
8/01/32
................................
1,000,000
1,148,189
GO,
2021
B,
AGMC
Insured,
4%,
8/01/35
................................
1,000,000
1,145,030
Bristol
Township
School
District
,
GO
,
2021
C
,
BAM
Insured
,
3
%
,
6/01/37
..........
1,250,000
1,299,372
Bucks
County
Industrial
Development
Authority
,
St.
Luke's
Hospital
Obligated
Group,
Revenue,
2019,
4%,
8/15/44
.............
1,500,000
1,651,561
St.
Luke's
Hospital
Obligated
Group,
Revenue,
2021,
3%,
8/15/53
.............
12,000,000
11,340,032
Butler
County
Hospital
Authority
,
Butler
Health
System
Obligated
Group
,
Revenue
,
2015
A
,
Refunding
,
5
%
,
7/01/39
.......................................
1,625,000
1,779,672
Canon
Mcmillan
School
District
,
GO,
2019,
Refunding,
BAM
Insured,
4%,
6/01/44
..........................
6,075,000
6,564,842
GO,
2019,
Refunding,
BAM
Insured,
4%,
6/01/46
..........................
7,680,000
8,267,779
GO,
2019,
Refunding,
BAM
Insured,
4%,
6/01/48
..........................
5,250,000
5,649,118
GO,
2019,
Refunding,
BAM
Insured,
4%,
6/01/50
..........................
6,000,000
6,471,485
Central
Bradford
Progress
Authority
,
Guthrie
Clinic
(The)
,
Revenue
,
2021
B
,
4
%
,
12/01/51
........................................................
5,000,000
5,467,631
Centre
County
Hospital
Authority
,
Mount
Nittany
Medical
Center
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
11/15/42
.......................................................
1,215,000
1,410,923
Mount
Nittany
Medical
Center
Obligated
Group,
Revenue,
2018
A,
Refunding,
4%,
11/15/47
.......................................................
1,840,000
1,998,648
Chester
County
Industrial
Development
Authority
,
University
Student
Housing
LLC,
Revenue,
2013
A,
5%,
8/01/35
...............
500,000
510,799
University
Student
Housing
LLC,
Revenue,
2013
A,
5%,
8/01/45
...............
1,500,000
1,525,325
City
of
Erie
Higher
Education
Building
Authority
,
Gannon
University,
Revenue,
2021
TT-1,
4%,
5/01/36
......................
400,000
441,478
Gannon
University,
Revenue,
2021
TT-1,
4%,
5/01/41
......................
1,000,000
1,091,960
Gannon
University,
Revenue,
2021
TT-1,
5%,
5/01/47
......................
480,000
563,625
City
of
Philadelphia
,
GO,
2019
B,
5%,
2/01/36
............................................
3,300,000
3,999,173
GO,
2019
B,
5%,
2/01/37
............................................
4,950,000
5,984,555
GO,
2019
B,
5%,
2/01/38
............................................
2,500,000
2,998,426
GO,
2019
B,
5%,
2/01/39
............................................
2,500,000
2,997,370
GO,
2021
A,
4%,
5/01/37
............................................
5,000,000
5,726,399
GO,
2021
A,
4%,
5/01/38
............................................
5,000,000
5,714,764
Airport,
Revenue,
2017
B,
Refunding,
5%,
7/01/42
.........................
10,000,000
11,298,839
Airport,
Revenue,
2020
C,
Refunding,
4%,
7/01/45
.........................
2,725,000
2,942,469
Airport,
Revenue,
2020
C,
Refunding,
4%,
7/01/50
.........................
3,225,000
3,463,085
Airport,
Revenue,
2021,
Refunding,
5%,
7/01/51
...........................
11,600,000
13,670,220
Water
&
Wastewater,
Revenue,
2015
A,
Pre-Refunded,
5%,
7/01/40
............
10,000,000
10,862,083
Water
&
Wastewater,
Revenue,
2015
A,
Pre-Refunded,
5%,
7/01/45
............
5,000,000
5,431,041
Water
&
Wastewater,
Revenue,
2017
A,
5%,
10/01/47
......................
5,000,000
5,795,760
Water
&
Wastewater,
Revenue,
2019
B,
5%,
11/01/49
......................
5,000,000
5,985,322
Water
&
Wastewater,
Revenue,
2021
C,
5%,
10/01/46
......................
5,000,000
6,082,260
Colonial
School
District
,
GO
,
2021
A
,
3
%
,
2/15/40
...........................
1,650,000
1,723,602
Commonwealth
Financing
Authority
,
Commonwealth
of
Pennsylvania
Department
of
Community
&
Economic
Development
,
Revenue
,
2015
A
,
5
%
,
6/01/34
..........
10,000,000
11,051,815
Commonwealth
of
Pennsylvania
,
GO
,
2019
,
Refunding
,
5
%
,
7/15/29
.............
10,000,000
12,276,047
Conestoga
Valley
School
District
,
GO,
2021
A,
4%,
2/01/36
............................................
1,100,000
1,261,479
Revenue,
2021
B,
4%,
2/01/36
........................................
1,020,000
1,170,495
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Pennsylvania
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
145
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Pennsylvania
(continued)
County
of
Beaver
,
GO
,
2017
,
BAM
Insured
,
4
%
,
4/15/29
......................
$
1,660,000
$
1,888,544
County
of
Jefferson
,
GO,
2021,
Refunding,
AGMC
Insured,
3%,
12/15/35
........................
650,000
684,485
GO,
2021,
Refunding,
AGMC
Insured,
3%,
12/15/37
........................
770,000
802,196
GO,
2021,
Refunding,
AGMC
Insured,
3%,
12/15/39
........................
520,000
539,586
County
of
Monroe
,
GO,
2021
A,
4%,
7/15/36
............................................
5,440,000
6,199,867
GO,
2021
A,
4%,
7/15/37
............................................
5,500,000
6,242,530
County
of
Montgomery
,
GO,
2021
A,
5%,
1/01/38
............................................
6,825,000
8,554,014
GO,
2021
A,
5%,
1/01/39
............................................
7,175,000
8,982,367
County
of
York
,
GO
,
2020
B
,
4
%
,
6/01/38
.................................
860,000
983,572
Cumberland
County
Municipal
Authority
,
Dickinson
College
,
Revenue
,
2012
,
5
%
,
11/01/42
........................................................
4,500,000
4,609,632
Dallas
Area
Municipal
Authority
,
Misericordia
University
,
Revenue
,
2014
,
Refunding
,
5
%
,
5/01/37
......................................................
2,500,000
2,619,443
Dauphin
County
General
Authority
,
UPMC
Obligated
Group
,
Revenue
,
2012
A
,
5
%
,
6/01/42
.........................................................
15,590,000
15,749,659
Delaware
County
Authority
,
Elwyn
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
6/01/27
..............
2,800,000
3,019,121
Elwyn
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
6/01/32
..............
1,620,000
1,723,355
Villanova
University,
Revenue,
2015,
4%,
8/01/45
..........................
2,120,000
2,259,941
Delaware
County
Regional
Water
Quality
Control
Authority
,
Revenue
,
2016
,
4
%
,
11/01/36
........................................................
2,005,000
2,197,920
Delaware
County
Vocational
&
Technical
School
Authority
,
Delaware
County
Intermediate
Unit
,
Revenue
,
2013
,
Pre-Refunded
,
BAM
Insured
,
5
%
,
11/01/38
....
1,250,000
1,329,982
DuBois
Hospital
Authority
,
Penn
Highlands
Healthcare
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
7/15/41
........................................................
1,000,000
1,105,898
Penn
Highlands
Healthcare
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
7/15/51
........................................................
4,000,000
4,344,382
East
Hempfield
Township
Industrial
Development
Authority
,
Student
Services,
Inc.,
Revenue,
2013,
Pre-Refunded,
5%,
7/01/45
............
3,250,000
3,418,639
Student
Services,
Inc.,
Revenue,
2015,
Pre-Refunded,
5%,
7/01/47
............
3,750,000
4,189,774
Easton
Area
School
District
,
GO
,
2021
,
4
%
,
4/01/32
.........................
1,450,000
1,678,797
Erie
City
Water
Authority
,
Revenue
,
2016
,
Pre-Refunded
,
5
%
,
12/01/43
...........
6,000,000
6,966,992
Fairview
School
District
,
GO,
2021,
BAM
Insured,
3%,
9/15/37
...................................
1,195,000
1,244,367
GO,
2021,
BAM
Insured,
3%,
9/15/38
...................................
1,000,000
1,038,780
GO,
2021,
BAM
Insured,
3%,
9/15/39
...................................
1,000,000
1,039,091
Geisinger
Authority
,
Geisinger
Health
System
Obligated
Group
,
Revenue
,
2017
A-1
,
Refunding
,
5
%
,
2/15/45
.............................................
19,055,000
21,898,456
General
Authority
of
Southcentral
Pennsylvania
,
WellSpan
Health
Obligated
Group
,
Revenue
,
2014
A
,
Pre-Refunded
,
5
%
,
6/01/44
............................
11,955,000
12,965,463
Governor
Mifflin
School
District
,
GO,
2020
A,
4%,
4/01/40
............................................
680,000
758,042
GO,
2020
A,
4%,
4/01/41
............................................
1,700,000
1,893,972
GO,
2021,
3%,
4/01/35
.............................................
810,000
853,916
GO,
2021,
3%,
4/01/36
.............................................
625,000
658,344
GO,
2021,
3%,
4/01/37
.............................................
1,000,000
1,044,324
GO,
2021,
3%,
4/01/38
.............................................
1,000,000
1,035,964
GO,
2021,
3%,
4/01/39
.............................................
1,015,000
1,049,794
GO,
2021,
4%,
4/01/40
.............................................
800,000
893,264
GO,
2021,
4%,
4/01/41
.............................................
1,100,000
1,227,456
Greater
Johnstown
Water
Authority
,
Sewer,
Revenue,
2020,
AGMC
Insured,
4%,
8/15/38
.......................
1,740,000
1,961,628
Sewer,
Revenue,
2020,
AGMC
Insured,
4%,
8/15/41
.......................
2,650,000
2,982,637
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Pennsylvania
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
146
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Pennsylvania
(continued)
Huntingdon
County
General
Authority
,
Juniata
College
,
Revenue
,
2021
TT-3
,
Refunding
,
5
%
,
10/01/51
............................................
$
2,520,000
$
2,889,070
Lancaster
County
Hospital
Authority
,
University
of
Pennsylvania
Health
System
Obligated
Group
(The)
,
Revenue
,
2016
B
,
Refunding
,
5
%
,
8/15/46
.............
4,165,000
4,718,406
Lancaster
Industrial
Development
Authority
,
Landis
Homes
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
7/01/56
........
3,300,000
3,350,197
Willow
Valley
Communities
Obligated
Group,
Revenue,
2019,
5%,
12/01/44
......
1,850,000
2,068,111
Willow
Valley
Communities
Obligated
Group,
Revenue,
2019,
5%,
12/01/49
......
2,300,000
2,561,755
Lancaster
School
District
,
GO,
2020,
AGMC
Insured,
4%,
6/01/34
.................................
1,000,000
1,137,346
GO,
2020,
AGMC
Insured,
4%,
6/01/35
.................................
1,850,000
2,102,203
Latrobe
Industrial
Development
Authority
,
Seton
Hill
University,
Revenue,
2021,
Refunding,
4%,
3/01/46
................
750,000
771,656
Seton
Hill
University,
Revenue,
2021,
Refunding,
4%,
3/01/51
................
800,000
821,209
St.
Vincent
College
Corp.,
Revenue,
2013,
5%,
5/01/43
.....................
4,120,000
4,222,451
Lehigh
County
Authority
,
Revenue,
2013
A,
Pre-Refunded,
5%,
12/01/43
...........................
2,805,000
2,989,638
Revenue,
2013
A,
5%,
12/01/43
.......................................
2,435,000
2,583,054
Lehigh
County
General
Purpose
Authority
,
Good
Shepherd
Obligated
Group
(The),
Revenue,
2021
A,
Refunding,
4%,
11/01/41
4,345,000
4,908,453
Lehigh
Valley
Academy
Regional
Charter
School,
Revenue,
2022,
4%,
6/01/42
....
14,390,000
15,864,933
Lehigh
Valley
Academy
Regional
Charter
School,
Revenue,
2022,
4%,
6/01/57
....
5,000,000
5,377,903
Lycoming
County
Authority
,
Lycoming
College,
Revenue,
2013
MM-1,
5.25%,
11/01/38
...................
1,400,000
1,492,930
Lycoming
College,
Revenue,
2013
MM-1,
5.25%,
11/01/43
...................
1,495,000
1,592,186
Mckeesport
Area
School
District
,
GO
,
2020
B
,
AGMC
Insured
,
4
%
,
10/01/40
.......
1,500,000
1,691,530
Montgomery
County
Higher
Education
and
Health
Authority
,
Thomas
Jefferson
University
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
9/01/43
........................................................
3,000,000
3,501,698
Thomas
Jefferson
University
Obligated
Group,
Revenue,
2019,
Refunding,
4%,
9/01/44
........................................................
10,000,000
10,951,186
Thomas
Jefferson
University
Obligated
Group,
Revenue,
2022
B,
Refunding,
4%,
5/01/52
........................................................
4,000,000
4,387,907
Thomas
Jefferson
University
Obligated
Group,
Revenue,
2022
B,
Refunding,
5%,
5/01/52
........................................................
5,000,000
5,966,198
Montgomery
County
Industrial
Development
Authority
,
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020
C,
4%,
11/15/43
.......................................................
600,000
662,822
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020
C,
5%,
11/15/45
.......................................................
1,985,000
2,296,526
Main
Line
Health
System,
Inc.
Obligated
Group,
Revenue,
2012
A,
Pre-Refunded,
5%,
10/01/41
...................................................
9,600,000
9,634,708
Meadowood
Corp.
Obligated
Group
(The),
Revenue,
2018
A,
Refunding,
5%,
12/01/38
.......................................................
2,500,000
2,745,904
Public
School
of
Germantown
(The),
Revenue,
2021
A,
Refunding,
4%,
10/01/51
..
2,450,000
2,671,489
Waverly
Heights
Ltd.
Obligated
Group,
Revenue,
2019,
Refunding,
5%,
12/01/49
..
2,000,000
2,227,613
New
Kensington
Municipal
Sanitary
Authority
,
Revenue
,
2021
A
,
AGMC
Insured
,
3
%
,
12/01/38
........................................................
500,000
519,517
Northampton
County
General
Purpose
Authority
,
St.
Luke's
Hospital
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
8/15/46
...
10,000,000
11,233,101
St.
Luke's
Hospital
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
8/15/43
...
2,285,000
2,684,180
St.
Luke's
Hospital
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
8/15/48
...
2,500,000
2,918,620
Northeastern
Pennsylvania
Hospital
and
Education
Authority
,
King's
College,
Revenue,
2019,
5%,
5/01/44
.............................
1,000,000
1,126,268
Wilkes
University,
Revenue,
2012
A,
5.25%,
3/01/42
........................
2,400,000
2,400,000
Northeastern
School
District
,
GO,
2021
A,
BAM
Insured,
3%,
3/01/38
.................................
850,000
880,250
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Pennsylvania
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
147
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Pennsylvania
(continued)
Northeastern
School
District,
(continued)
GO,
2021
A,
BAM
Insured,
3%,
3/01/41
.................................
$
775,000
$
796,610
Northern
Lebanon
School
District
,
GO
,
2021
,
BAM
Insured
,
3
%
,
9/01/36
..........
1,895,000
1,983,288
Pennsylvania
Economic
Development
Financing
Authority
,
City
of
Philadelphia
Water
&
Wastewater,
Revenue,
2020,
Refunding,
4%,
1/01/29
.
500,000
548,874
City
of
Philadelphia
Water
&
Wastewater,
Revenue,
2020,
Refunding,
4%,
1/01/32
.
1,300,000
1,441,428
UPMC
Obligated
Group,
Revenue,
2014
A,
5%,
2/01/45
.....................
5,000,000
5,388,093
UPMC
Obligated
Group,
Revenue,
2017
A,
Refunding,
4%,
11/15/42
...........
5,000,000
5,464,615
UPMC
Obligated
Group,
Revenue,
2020
A,
4%,
4/15/45
.....................
8,835,000
9,786,976
UPMC
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
10/15/37
...........
1,375,000
1,567,070
UPMC
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
10/15/39
...........
1,325,000
1,503,778
UPMC
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
10/15/40
...........
1,200,000
1,359,404
Pennsylvania
Higher
Educational
Facilities
Authority
,
Bryn
Mawr
College,
Revenue,
2014,
Refunding,
5%,
12/01/44
................
6,365,000
6,903,578
Foundation
for
Indiana
University
of
Pennsylvania
(The),
Revenue,
2012
A,
Pre-
Refunded,
5%,
7/01/41
............................................
1,250,000
1,268,032
Gwynedd
Mercy
University,
Revenue,
2012
KK-1,
5.375%,
5/01/42
............
1,800,000
1,808,675
Shippensburg
University
Student
Services,
Inc.,
Revenue,
2012,
Pre-Refunded,
5%,
10/01/35
.......................................................
1,400,000
1,434,460
Shippensburg
University
Student
Services,
Inc.,
Revenue,
2012,
Pre-Refunded,
5%,
10/01/44
.......................................................
2,000,000
2,049,228
Temple
University-of
The
Commonwealth
System
of
Higher
Education,
Revenue,
First
Series,
2012,
Pre-Refunded,
5%,
4/01/42
..........................
14,000,000
14,051,192
Thomas
Jefferson
University
Obligated
Group,
Revenue,
2015
A,
Refunding,
5%,
9/01/45
........................................................
7,465,000
8,165,463
Trustees
of
the
University
of
Pennsylvania
(The),
Revenue,
2017
A,
5%,
8/15/36
..
2,750,000
3,172,409
Trustees
of
the
University
of
Pennsylvania
(The),
Revenue,
2017
A,
5%,
8/15/46
..
14,000,000
16,034,192
Trustees
of
the
University
of
Pennsylvania
(The),
Revenue,
2018
A,
5%,
2/15/48
..
5,000,000
5,843,361
University
of
Pennsylvania
Health
System
Obligated
Group
(The),
Revenue,
2015,
Refunding,
5%,
8/15/40
............................................
6,475,000
7,176,416
University
of
Pennsylvania
Health
System
Obligated
Group
(The),
Revenue,
2017
A,
4%,
8/15/42
....................................................
5,000,000
5,461,771
University
of
Pennsylvania
Health
System
Obligated
Group
(The),
Revenue,
2017
A,
5%,
8/15/42
....................................................
9,000,000
10,467,213
University
of
Sciences,
Revenue,
2012,
5%,
11/01/42
.......................
5,000,000
5,090,960
Widener
University,
Revenue,
2021
A,
Refunding,
4%,
7/15/46
................
4,025,000
4,368,285
Widener
University,
Revenue,
2021
A,
Refunding,
4%,
7/15/51
................
6,780,000
7,329,087
Pennsylvania
Housing
Finance
Agency
,
Revenue,
2019-129,
3.4%,
10/01/49
...................................
6,000,000
6,134,268
Revenue,
2020-132
A,
2.55%,
10/01/41
.................................
11,280,000
10,787,600
Pennsylvania
State
University
(The)
,
Revenue,
2015
A,
Refunding,
5%,
9/01/40
...............................
10,490,000
11,639,523
Revenue,
2016
A,
Refunding,
5%,
9/01/41
...............................
10,000,000
11,395,999
Revenue,
2017
A,
5%,
9/01/42
........................................
15,750,000
18,376,928
Revenue,
2017
A,
5%,
9/01/47
........................................
10,000,000
11,595,015
Revenue,
2018,
5%,
9/01/48
.........................................
5,955,000
6,994,054
Pennsylvania
Turnpike
Commission
,
Revenue,
2013
C,
Pre-Refunded,
5%,
12/01/43
...........................
7,595,000
8,108,619
Revenue,
2013
C,
5%,
12/01/43
.......................................
2,405,000
2,556,397
Revenue,
2021
A,
Refunding,
4%,
12/01/39
..............................
2,655,000
3,012,605
Revenue,
2021
A,
4%,
12/01/50
.......................................
10,000,000
10,980,514
Revenue,
2021
B,
4%,
12/01/37
.......................................
1,500,000
1,702,211
Philadelphia
Authority
for
Industrial
Development
,
Beech
International
LLC,
Revenue,
2010
A,
5.625%,
6/15/42
.................
4,000,000
4,006,045
Children's
Hospital
of
Philadelphia
Obligated
Group,
Revenue,
2014
A,
5%,
7/01/42
5,000,000
5,410,582
MaST
Community
Charter
School
II,
Revenue,
2020
A,
5%,
8/01/30
............
200,000
226,154
MaST
Community
Charter
School
II,
Revenue,
2020
A,
5%,
8/01/40
............
300,000
346,683
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Pennsylvania
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
148
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Pennsylvania
(continued)
Philadelphia
Authority
for
Industrial
Development,
(continued)
MaST
Community
Charter
School
II,
Revenue,
2020
A,
5%,
8/01/50
............
$
2,515,000
$
2,866,101
Temple
University-of
The
Commonwealth
System
of
Higher
Education,
Revenue,
First
Series,
2015,
Refunding,
5%,
4/01/40
.............................
5,000,000
5,479,314
Thomas
Jefferson
University
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
9/01/47
........................................................
11,150,000
12,684,053
Philadelphia
Gas
Works
Co.
,
Revenue,
14th,
Refunding,
5%,
10/01/32
................................
1,000,000
1,144,217
Revenue,
15th,
Refunding,
5%,
8/01/42
.................................
5,000,000
5,740,973
Revenue,
15th,
Refunding,
5%,
8/01/47
.................................
6,000,000
6,790,625
Pocono
Mountains
Industrial
Park
Authority
,
St.
Luke's
Hospital
Obligated
Group
,
Revenue
,
2015
A
,
5
%
,
8/15/40
........................................
5,000,000
5,447,821
Radnor
Township
School
District
,
GO,
2021,
3%,
8/15/35
.............................................
1,400,000
1,468,293
GO,
2021,
4%,
8/15/36
.............................................
1,600,000
1,830,220
GO,
2021,
4%,
8/15/37
.............................................
3,445,000
3,933,296
GO,
2021,
4%,
8/15/38
.............................................
1,430,000
1,627,782
GO,
2021,
4%,
8/15/39
.............................................
1,400,000
1,610,835
School
District
of
Philadelphia
(The)
,
GO
,
2021
A
,
4
%
,
9/01/37
.................
4,000,000
4,556,146
Scranton
School
District
,
GO,
2020,
4%,
12/01/40
.............................................
1,535,000
1,709,172
GO,
2020,
4%,
12/01/42
.............................................
2,835,000
3,149,566
GO,
2020,
4%,
12/01/45
.............................................
3,670,000
4,054,451
Scranton-Lackawanna
Health
and
Welfare
Authority
,
University
of
Scranton
,
Revenue
,
2016
,
Refunding
,
5
%
,
11/01/37
.......................................
4,000,000
4,475,767
State
College
Area
School
District
,
GO,
2015,
5%,
3/15/40
.............................................
16,400,000
17,946,594
GO,
2018,
5%,
5/15/37
.............................................
1,075,000
1,281,757
GO,
2018,
5%,
5/15/44
.............................................
3,500,000
4,132,913
State
Public
School
Building
Authority
,
School
District
of
Philadelphia
(The),
Revenue,
2016
A,
Refunding,
AGMC
Insured,
5%,
6/01/32
....................................................
7,095,000
8,133,141
School
District
of
Philadelphia
(The),
Revenue,
2016
A,
Refunding,
AGMC
Insured,
5%,
6/01/33
....................................................
3,000,000
3,437,487
Swarthmore
Borough
Authority
,
Swarthmore
College
,
Revenue
,
2013
,
5
%
,
9/15/43
..
1,000,000
1,053,083
Township
of
Northampton
,
GO
,
2021
,
4
%
,
5/15/39
...........................
1,495,000
1,684,010
Township
of
Upper
St.
Clair
,
GO,
2021,
4%,
5/15/37
.............................................
535,000
608,068
GO,
2021,
4%,
5/15/39
.............................................
1,000,000
1,132,861
Upper
Merion
Area
School
District
,
GO,
2021
A,
3%,
1/15/39
............................................
1,000,000
1,033,336
GO,
2021
A,
3%,
1/15/40
............................................
1,500,000
1,550,697
GO,
2021
A,
3%,
1/15/41
............................................
1,275,000
1,314,812
Westmoreland
County
Industrial
Development
Authority
,
Excela
Health
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
7/01/29
......
725,000
876,464
Excela
Health
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
7/01/30
......
1,270,000
1,558,992
Excela
Health
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
7/01/37
......
2,400,000
2,704,391
Wilkes-Barre
Finance
Authority
,
Wilkes
University
,
Revenue
,
2021
,
Refunding
,
4
%
,
3/01/42
.........................................................
2,500,000
2,601,697
Wilson
School
District
,
GO,
2021
C,
4%,
5/15/30
............................................
2,500,000
2,904,494
GO,
2021
C,
4%,
5/15/31
............................................
2,100,000
2,427,543
GO,
2021
C,
4%,
5/15/32
............................................
1,850,000
2,132,065
883,034,302
Franklin
Tax-Free
Trust
Statement
of
Investments
Franklin
Pennsylvania
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
149
s
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
South
Carolina
0.5%
South
Carolina
Jobs-Economic
Development
Authority
,
a
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
$
2,000,000
$
1,871,501
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
2,000,000
1,869,413
a
South
Carolina
State
Housing
Finance
&
Development
Authority
,
Garden
Oaks
LP
,
Revenue
,
144A,
2021
A
,
4.2
%
,
12/01/39
................................
1,000,000
931,069
4,671,983
Texas
0.6%
a
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
2,600,000
2,411,976
a
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
A-2
,
5
%
,
12/01/52
............
3,300,000
3,310,642
5,722,618
Washington
0.2%
a
Washington
State
Housing
Finance
Commission
,
Madison
at
Rivers
Edge
Apartments
LLC
,
Revenue
,
144A,
2021
A
,
3.65
%
,
1/01/37
............................
2,000,000
1,870,988
Wisconsin
0.9%
a
Public
Finance
Authority
,
Revenue,
144A,
2022,
B-1,
4%,
12/28/44
................................
1,900,000
1,830,677
Affordable
Housing
Preservation
Corp.
(The),
Revenue,
144A,
2021,
5.25%,
12/01/22
.......................................................
6,900,000
6,868,255
8,698,932
U.S.
Territories
1.3%
Puerto
Rico
1.3%
Puerto
Rico
Electric
Power
Authority
,
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/32
....................
1,100,000
1,164,881
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/34
....................
1,000,000
1,060,346
c
Revenue,
XX-RSA-1,
5.25%,
7/01/40
...................................
5,175,000
5,362,594
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue,
2007
N,
Refunding,
AGMC
Insured,
5.25%,
7/01/36
................
950,000
992,636
Revenue,
2007
N,
Refunding,
AGMC
Insured,
5.5%,
7/01/29
.................
2,500,000
2,667,682
Revenue,
CC,
Refunding,
AGMC
Insured,
5.5%,
7/01/28
....................
755,000
805,364
Revenue,
L,
Refunding,
AGMC
Insured,
5.25%,
7/01/41
.....................
1,290,000
1,341,974
13,395,477
Total
U.S.
Territories
....................................................................
13,395,477
Total
Municipal
Bonds
(Cost
$939,850,086)
.....................................
952,187,714
a
a
a
a
a
Total
Investments
(Cost
$939,850,086)
95.6%
...................................
$952,187,714
Other
Assets,
less
Liabilities
4.4%
.............................................
44,224,295
Net
Assets
100.0%
...........................................................
$996,412,009
See
Abbreviations
on
page
176
.
a
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
February
28,
2022,
the
aggregate
value
of
these
securities
was
$19,990,275,
representing
2.0%
of
net
assets.
b
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).
c
See
Note
7
regarding
credit
risk
and
defaulted
securities.
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Assets
and
Liabilities
February
28,
2022
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
150
Franklin
Arizona
Tax-
Free
Income
Fund
Franklin
Colorado
Tax-
Free
Income
Fund
Franklin
Connecticut
Tax-Free
Income
Fund
Franklin
Michigan
Tax-
Free
Income
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
................
$933,175,438
$684,664,570
$179,221,684
$892,215,704
Value
-
Unaffiliated
issuers
...............
$969,666,920
$712,018,618
$181,939,766
$920,075,476
Cash
.................................
16,121,916
8,633,929
3,507,389
3,017,075
Receivables:
Investment
securities
sold
................
—
—
—
2,802,637
Capital
shares
sold
.....................
594,212
195,897
13,000
493,035
Interest
..............................
7,894,339
8,186,611
1,529,808
11,572,211
Total
assets
.......................
994,277,387
729,035,055
186,989,963
937,960,434
Liabilities:
Payables:
Investment
securities
purchased
...........
—
—
2,973,759
10,313,887
Capital
shares
redeemed
................
1,697,302
1,023,441
614,695
1,574,486
Management
fees
......................
392,353
293,462
86,891
367,582
Distribution
fees
.......................
106,339
75,743
19,619
96,433
Transfer
agent
fees
.....................
99,190
86,811
17,451
99,727
Trustees'
fees
and
expenses
..............
700
—
1,150
—
Distributions
to
shareholders
..............
199,300
66,977
46,202
173,407
Accrued
expenses
and
other
liabilities
........
84,110
117,199
73,388
148,815
Total
liabilities
......................
2,579,294
1,663,633
3,833,155
12,774,337
Net
assets,
at
value
..............
$991,698,093
$727,371,422
$183,156,808
$925,186,097
Net
assets
consist
of:
Paid-in
capital
..........................
$1,018,737,177
$749,627,695
$214,918,492
$958,496,780
Total
distributable
earnings
(losses)
..........
(27,039,084)
(22,256,273)
(31,761,684)
(33,310,683)
Net
assets,
at
value
..............
$991,698,093
$727,371,422
$183,156,808
$925,186,097
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
February
28,
2022
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
151
Franklin
Arizona
Tax-
Free
Income
Fund
Franklin
Colorado
Tax-
Free
Income
Fund
Franklin
Connecticut
Tax-Free
Income
Fund
Franklin
Michigan
Tax-
Free
Income
Fund
Class
A:
Net
assets,
at
value
....................
$210,354,721
$142,935,463
$34,083,518
$134,389,997
Shares
outstanding
.....................
19,769,588
12,533,144
3,460,102
11,755,794
Net
asset
value
per
share
a
...............
$10.64
$11.40
$9.85
$11.43
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%,
96.25%,
96.25%
and
96.25%,
respectively)
...................
$11.05
$11.84
$10.23
$11.88
Class
A1:
Net
assets,
at
value
....................
$526,130,547
$386,961,664
$119,599,221
$628,768,989
Shares
outstanding
.....................
49,535,874
33,947,831
12,154,706
55,070,833
Net
asset
value
per
share
a
...............
$10.62
$11.40
$9.84
$11.42
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%,
96.25%,
96.25%
and
96.25%,
respectively)
...................
$11.03
$11.84
$10.22
$11.86
Class
C:
Net
assets,
at
value
....................
$48,833,353
$36,061,895
$7,281,224
$43,147,814
Shares
outstanding
.....................
4,518,657
3,124,607
733,953
3,718,021
Net
asset
value
and
maximum
offering
price
per
share
a
...............................
$10.81
$11.54
$9.92
$11.61
Class
R6:
Net
assets,
at
value
....................
$28,123,074
$23,614,917
$1,815,324
$11,254,525
Shares
outstanding
.....................
2,639,369
2,070,080
184,499
981,724
Net
asset
value
and
maximum
offering
price
per
share
...............................
$10.66
$11.41
$9.84
$11.46
Advisor
Class:
Net
assets,
at
value
....................
$178,256,398
$137,797,483
$20,377,521
$107,624,772
Shares
outstanding
.....................
16,732,620
12,088,284
2,072,291
9,395,083
Net
asset
value
and
maximum
offering
price
per
share
...............................
$10.65
$11.40
$9.83
$11.46
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
February
28,
2022
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
152
Franklin
Minnesota
Tax-
Free
Income
Fund
Franklin
Ohio
Tax-Free
Income
Fund
Franklin
Oregon
Tax-
Free
Income
Fund
Franklin
Pennsylvania
Tax-Free
Income
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
................
$1,003,997,209
$1,562,106,764
$1,191,746,771
$939,850,086
Value
-
Unaffiliated
issuers
...............
$1,030,034,872
$1,612,834,973
$1,239,190,199
$952,187,714
Cash
.................................
36,044,244
20,911,958
18,549,736
41,933,588
Receivables:
Investment
securities
sold
................
9,681
7,475,580
—
2,242,109
Capital
shares
sold
.....................
483,867
527,023
610,644
507,793
Interest
..............................
7,024,890
14,057,397
12,140,632
9,407,805
Total
assets
.......................
1,073,597,554
1,655,806,931
1,270,491,211
1,006,279,009
Liabilities:
Payables:
Investment
securities
purchased
...........
7,742,275
40,061,395
5,835,985
7,759,966
Capital
shares
redeemed
................
1,400,800
1,997,666
1,235,638
1,183,049
Management
fees
......................
419,365
625,020
493,716
394,054
Distribution
fees
.......................
117,652
190,390
141,504
116,060
Transfer
agent
fees
.....................
163,251
170,498
119,368
104,804
Trustees'
fees
and
expenses
..............
—
—
849
968
Distributions
to
shareholders
..............
77,519
170,976
115,599
143,023
Accrued
expenses
and
other
liabilities
........
171,137
228,548
141,439
165,076
Total
liabilities
......................
10,091,999
43,444,493
8,084,098
9,867,000
Net
assets,
at
value
..............
$1,063,505,555
$1,612,362,438
$1,262,407,113
$996,412,009
Net
assets
consist
of:
Paid-in
capital
..........................
$1,049,498,835
$1,598,266,318
$1,294,510,851
$1,068,256,389
Total
distributable
earnings
(losses)
..........
14,006,720
14,096,120
(32,103,738)
(71,844,380)
Net
assets,
at
value
..............
$1,063,505,555
$1,612,362,438
$1,262,407,113
$996,412,009
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
February
28,
2022
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
153
Franklin
Minnesota
Tax-
Free
Income
Fund
Franklin
Ohio
Tax-Free
Income
Fund
Franklin
Oregon
Tax-
Free
Income
Fund
Franklin
Pennsylvania
Tax-Free
Income
Fund
Class
A:
Net
assets,
at
value
....................
$193,020,975
$315,516,190
$251,006,177
$175,896,231
Shares
outstanding
.....................
15,827,191
25,151,553
21,916,457
18,237,697
Net
asset
value
per
share
a
...............
$12.20
$12.54
$11.45
$9.64
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%,
96.25%,
96.25%
and
96.25%,
respectively)
...................
$12.68
$13.03
$11.90
$10.02
Class
A1:
Net
assets,
at
value
....................
$506,600,900
$850,931,780
$731,732,220
$644,308,477
Shares
outstanding
.....................
41,545,573
67,873,310
63,947,080
66,826,597
Net
asset
value
per
share
a
...............
$12.19
$12.54
$11.44
$9.64
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%,
96.25%,
96.25%
and
96.25%,
respectively)
...................
$12.66
$13.03
$11.89
$10.02
Class
C:
Net
assets,
at
value
....................
$81,057,891
$125,479,430
$72,237,484
$63,426,370
Shares
outstanding
.....................
6,571,432
9,870,113
6,212,833
6,491,964
Net
asset
value
and
maximum
offering
price
per
share
a
...............................
$12.33
$12.71
$11.63
$9.77
Class
R6:
Net
assets,
at
value
....................
$16,570,726
$21,432,895
$26,268,690
$5,802,274
Shares
outstanding
.....................
1,356,676
1,707,264
2,293,874
600,916
Net
asset
value
and
maximum
offering
price
per
share
...............................
$12.21
$12.55
$11.45
$9.66
Advisor
Class:
Net
assets,
at
value
....................
$266,255,063
$299,002,143
$181,162,542
$106,978,657
Shares
outstanding
.....................
21,808,246
23,822,043
15,809,302
11,079,916
Net
asset
value
and
maximum
offering
price
per
share
...............................
$12.21
$12.55
$11.46
$9.66
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Operations
for
the
year
ended
February
28,
2022
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
154
Franklin
Arizona
Tax-
Free
Income
Fund
Franklin
Colorado
Tax-
Free
Income
Fund
Franklin
Connecticut
Tax-Free
Income
Fund
Franklin
Michigan
Tax-
Free
Income
Fund
Investment
income:
Interest:
Unaffiliated
issuers
.....................
$31,702,756
$22,142,172
$5,853,053
$29,000,978
Expenses:
Management
fees
(Note
3
a
)
................
4,925,238
3,656,065
1,111,918
4,596,973
Distribution
fees:
(Note
3c
)
    Class
A
.............................
514,659
339,843
84,582
312,802
    Class
A1
............................
568,167
413,784
131,169
672,090
    Class
C
.............................
391,727
287,533
67,442
342,473
Transfer
agent
fees:
(Note
3e
)
    Class
A
.............................
135,009
101,262
31,293
89,868
    Class
A1
............................
371,757
306,613
118,558
482,724
    Class
C
.............................
39,369
32,591
8,964
37,861
    Class
R6
............................
10,822
8,858
705
4,234
    Advisor
Class
.........................
117,632
106,231
19,367
79,211
Custodian
fees
(Note
4
)
...................
5,619
4,135
1,087
5,342
Reports
to
shareholders
fees
...............
40,054
54,452
17,317
78,327
Registration
and
filing
fees
.................
48,530
33,500
23,014
65,940
Professional
fees
........................
59,151
62,689
93,342
69,417
Trustees'
fees
and
expenses
...............
9,485
6,399
2,834
8,191
Other
.................................
60,667
51,290
23,821
75,108
Total
expenses
......................
7,297,886
5,465,245
1,735,413
6,920,561
Expense
reductions
(Note
4
)
............
(8,005)
(5,917)
(1,591)
(3,988)
Expenses
waived/paid
by
affiliat
es
(Note
3e
and
3f)
...........................
(2,372)
(2,182)
(161)
(1,336)
Net
expenses
......................
7,287,509
5,457,146
1,733,661
6,915,237
Net
investment
income
.............
24,415,247
16,685,026
4,119,392
22,085,741
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
...................
(623,740)
609,347
562,813
5,303,487
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
...................
(26,359,653)
(19,206,183)
(6,544,374)
(38,530,605)
Net
realized
and
unrealized
gain
(loss)
.........
(26,983,393)
(18,596,836)
(5,981,561)
(33,227,118)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
...............................
$(2,568,146)
$(1,911,810)
$(1,862,169)
$(11,141,377)
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Operations
(continued)
for
the
year
ended
February
28,
2022
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
155
Franklin
Minnesota
Tax-
Free
Income
Fund
Franklin
Ohio
Tax-Free
Income
Fund
Franklin
Oregon
Tax-
Free
Income
Fund
Franklin
Pennsylvania
Tax-Free
Income
Fund
Investment
income:
Interest:
Unaffiliated
issuers
.....................
$29,818,832
$46,555,841
$36,013,114
$30,004,675
Expenses:
Management
fees
(Note
3
a
)
................
5,350,028
7,836,360
6,168,007
5,011,417
Distribution
fees:
(Note
3c
)
    Class
A
.............................
467,401
756,578
612,099
426,759
    Class
A1
............................
574,097
908,551
784,867
693,556
    Class
C
.............................
636,679
980,314
563,012
550,975
Transfer
agent
fees:
(Note
3e
)
    Class
A
.............................
161,509
213,839
147,874
117,013
    Class
A1
............................
497,887
641,107
474,485
476,038
    Class
C
.............................
85,222
106,370
52,430
58,384
    Class
R6
............................
6,623
9,238
9,365
3,121
    Advisor
Class
.........................
227,356
218,401
107,894
74,886
Custodian
fees
(Note
4
)
...................
6,061
9,493
7,338
5,989
Reports
to
shareholders
fees
...............
96,005
128,933
72,952
86,260
Registration
and
filing
fees
.................
61,326
69,689
23,222
30,556
Professional
fees
........................
69,878
72,505
61,680
58,629
Trustees'
fees
and
expenses
...............
9,602
14,287
12,007
9,986
Other
.................................
69,252
94,219
75,243
65,860
Total
expenses
......................
8,318,926
12,059,884
9,172,475
7,669,429
Expense
reductions
(Note
4
)
............
(7,824)
(12,506)
(8,740)
(5,398)
Expenses
waived/paid
by
affiliat
es
(Note
3e
and
3f)
...........................
(1,850)
(2,944)
(1,694)
(1,578)
Net
expenses
......................
8,309,252
12,044,434
9,162,041
7,662,453
Net
investment
income
.............
21,509,580
34,511,407
26,851,073
22,342,222
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
...................
(2,597,651)
(5,657,860)
(1,568,161)
7,804,857
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
...................
(34,947,318)
(41,375,401)
(28,772,949)
(33,197,486)
Net
realized
and
unrealized
gain
(loss)
.........
(37,544,969)
(47,033,261)
(30,341,110)
(25,392,629)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
...............................
$(16,035,389)
$(12,521,854)
$(3,490,037)
$(3,050,407)
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
156
Franklin
Arizona
Tax-Free
Income
Fund
Franklin
Colorado
Tax-Free
Income
Fund
Year
Ended
February
28,
2022
Year
Ended
February
28,
2021
Year
Ended
February
28,
2022
Year
Ended
February
28,
2021
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$24,415,247
$25,455,449
$16,685,026
$18,321,450
Net
realized
gain
(loss)
............
(623,740)
(3,793,166)
609,347
(3,793,127)
Net
change
in
unrealized
appreciation
(depreciation)
.................
(26,359,653)
(27,908,043)
(19,206,183)
(14,819,613)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
(2,568,146)
(6,245,760)
(1,911,810)
(291,290)
Distributions
to
shareholders:
Class
A
........................
(4,582,316)
(3,530,526)
(2,822,150)
(2,320,571)
Class
A1
.......................
(13,539,073)
(16,010,033)
(9,224,150)
(10,932,885)
Class
C
........................
(1,078,162)
(1,470,061)
(730,216)
(1,124,510)
Class
R6
.......................
(706,832)
(504,677)
(527,705)
(414,225)
Advisor
Class
...................
(4,446,484)
(3,848,416)
(3,326,783)
(3,165,996)
Total
distributions
to
shareholders
.....
(24,352,867)
(25,363,713)
(16,631,004)
(17,958,187)
Capital
share
transactions:
(Note
2
)
Class
A
........................
42,805,902
46,860,162
27,372,708
34,365,432
Class
A1
.......................
(42,867,742)
(69,501,214)
(26,007,260)
(43,750,326)
Class
C
........................
(17,781,992)
(10,539,521)
(14,240,207)
(13,899,100)
Class
R6
.......................
7,524,370
5,021,567
4,987,766
5,386,336
Advisor
Class
...................
8,881,011
53,324,877
8,831,540
19,728,309
Total
capital
share
transactions
.......
(1,438,451)
25,165,871
944,547
1,830,651
Net
increase
(decrease)
in
net
assets
.....................
(28,359,464)
(6,443,602)
(17,598,267)
(16,418,826)
Net
assets:
Beginning
of
year
..................
1,020,057,557
1,026,501,159
744,969,689
761,388,515
End
of
year
......................
$991,698,093
$1,020,057,557
$727,371,422
$744,969,689
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
157
Franklin
Connecticut
Tax-Free
Income
Fund
Franklin
Michigan
Tax-Free
Income
Fund
Year
Ended
February
28,
2022
Year
Ended
February
28,
2021
Year
Ended
February
28,
2022
Year
Ended
February
28,
2021
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$4,119,392
$5,483,919
$22,085,741
$23,545,313
Net
realized
gain
(loss)
............
562,813
238,822
5,303,487
2,425,654
Net
change
in
unrealized
appreciation
(depreciation)
.................
(6,544,374)
(4,813,848)
(38,530,605)
(18,546,109)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
(1,862,169)
908,893
(11,141,377)
7,424,858
Distributions
to
shareholders:
Class
A
........................
(660,235)
(636,353)
(2,707,857)
(2,069,591)
Class
A1
.......................
(2,777,742)
(3,845,333)
(15,578,131)
(17,733,776)
Class
C
........................
(162,619)
(367,425)
(910,264)
(1,318,876)
Class
R6
.......................
(41,198)
(15,579)
(236,286)
(124,531)
Advisor
Class
...................
(470,324)
(555,286)
(2,654,715)
(2,322,396)
Total
distributions
to
shareholders
.....
(4,112,118)
(5,419,976)
(22,087,253)
(23,569,170)
Capital
share
transactions:
(Note
2
)
Class
A
........................
6,803,733
7,340,317
31,989,312
34,307,234
Class
A1
.......................
(12,470,274)
(11,020,454)
(36,946,978)
(31,822,912)
Class
C
........................
(5,841,644)
(6,722,821)
(16,306,588)
(16,249,720)
Class
R6
.......................
493,143
1,098,621
5,469,674
2,166,826
Advisor
Class
...................
77,618
1,389,973
9,627,615
23,825,572
Total
capital
share
transactions
.......
(10,937,424)
(7,914,364)
(6,166,965)
12,227,000
Net
increase
(decrease)
in
net
assets
.....................
(16,911,711)
(12,425,447)
(39,395,595)
(3,917,312)
Net
assets:
Beginning
of
year
..................
200,068,519
212,493,966
964,581,692
968,499,004
End
of
year
......................
$183,156,808
$200,068,519
$925,186,097
$964,581,692
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
158
Franklin
Minnesota
Tax-Free
Income
Fund
Franklin
Ohio
Tax-Free
Income
Fund
Year
Ended
February
28,
2022
Year
Ended
February
28,
2021
Year
Ended
February
28,
2022
Year
Ended
February
28,
2021
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$21,509,580
$21,968,113
$34,511,407
$39,421,091
Net
realized
gain
(loss)
............
(2,597,651)
445,733
(5,657,860)
2,545,647
Net
change
in
unrealized
appreciation
(depreciation)
.................
(34,947,318)
(19,163,251)
(41,375,401)
(42,016,696)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
(16,035,389)
3,250,595
(12,521,854)
(49,958)
Distributions
to
shareholders:
Class
A
........................
(3,335,908)
(2,469,974)
(5,811,468)
(4,744,547)
Class
A1
.......................
(11,079,476)
(12,450,612)
(18,860,025)
(23,866,350)
Class
C
........................
(1,326,276)
(1,
872,618)
(2,256,500)
(3,512,371)
Class
R6
.......................
(332,102)
(247,539)
(463,674)
(344,000)
Advisor
Class
...................
(5,334,715)
(4,697,307)
(6,715,827)
(6,795,017)
Total
distributions
to
shareholders
.....
(21,408,477)
(21,738,050)
(34,107,494)
(39,262,285)
Capital
share
transactions:
(Note
2
)
Class
A
........................
39,541,298
65,835,864
64,015,784
106,924,752
Class
A1
.......................
(58,866,762)
(13,440,721)
(54,936,135)
(43,688,211)
Class
C
........................
(25,716,187)
(26,837,851)
(40,696,186)
(29,796,397)
Class
R6
.......................
3,280,591
4,436,109
5,151,900
6,679,310
Advisor
Class
...................
31,551,412
44,950,875
12,096,471
58,180,644
Total
capital
share
transactions
.......
(10,209,648)
74,944,276
(14,368,166)
98,300,098
Net
increase
(decrease)
in
net
assets
.....................
(47,653,514)
56,456,821
(60,997,514)
58,987,855
Net
assets:
Beginning
of
year
..................
1,111,159,069
1,054,702,248
1,673,359,952
1,614,372,097
End
of
year
......................
$1,063,505,555
$1,111,159,069
$1,612,362,438
$1,673,359,952
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
159
Franklin
Oregon
Tax-Free
Income
Fund
Franklin
Pennsylvania
Tax-Free
Income
Fund
Year
Ended
February
28,
2022
Year
Ended
February
28,
2021
Year
Ended
February
28,
2022
Year
Ended
February
28,
2021
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$26,851,073
$30,115,661
$22,342,222
$29,246,774
Net
realized
gain
(loss)
............
(1,568,161)
(5,485,462)
7,804,857
(1,784,008)
Net
change
in
unrealized
appreciation
(depreciation)
.................
(28,772,949)
(26,652,354)
(33,197,486)
(23,554,549)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
(3,490,037)
(2,022,155)
(3,050,407)
3,908,217
Distributions
to
shareholders:
Class
A
........................
(4,723,321)
(4,132,002)
(3,388,452)
(3,157,198)
Class
A1
.......................
(16,341,609)
(19,692,495)
(14,903,892)
(19,722,290)
Class
C
........................
(1,296,037)
(1,983,908)
(1,344,483)
(2,645,075)
Class
R6
.......................
(566,038)
(514,168)
(117,193)
(91,083)
Advisor
Class
...................
(3,891,758)
(3,799,761)
(2,448,830)
(2,744,522)
Total
distributions
to
shareholders
.....
(26,818,763)
(30,122,334)
(22,202,850)
(28,360,168)
Capital
share
transactions:
(Note
2
)
Class
A
........................
39,620,156
59,909,412
35,069,329
43,612,177
Class
A1
.......................
(56,963,758)
(40,614,949)
(49,109,140)
(46,410,237)
Class
C
........................
(24,448,091)
(26,854,264)
(40,451,026)
(38,262,675)
Class
R6
.......................
4,010,834
3,613,966
1,670,118
1,484,591
Advisor
Class
...................
14,473,672
30,062,347
4,186,212
9,653,555
Total
capital
share
transactions
.......
(23,307,187)
26,116,512
(48,634,507)
(29,922,589)
Net
increase
(decrease)
in
net
assets
.....................
(53,615,987)
(6,027,977)
(73,887,764)
(54,374,540)
Net
assets:
Beginning
of
year
..................
1,316,023,100
1,322,051,077
1,070,299,773
1,124,674,313
End
of
year
......................
$1,262,407,113
$1,316,023,100
$996,412,009
$1,070,299,773
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
160
franklintempleton.com
Annual
Report
1.
Organization
and
Significant
Accounting
Policies
Franklin
Tax-Free
Trust (Trust)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-end
management
investment
company,
consisting
of
twenty-one
separate
funds
(Funds), eight
of
which
are
included
in
this
report
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP).
The
Funds
offer
five
classes
of
shares:
Class
A,
Class
A1,
Class
C,
Class
R6
and
Advisor
Class.
Effective
August
2,
2021,
Class
C
shares
automatically
convert
to
Class
A
shares
on
a
monthly
basis,
after
they
have
been
held
for
8
years.
Prior
to
August
2,
2021,
Class
C
shares
converted
to
Class
A
shares
after
a
10-year
holding
period.
Each
class
of
shares
may
differ
by
its
initial
sales
load,
contingent
deferred
sales
charges,
voting
rights
on
matters
affecting
a
single
class,
its
exchange
privilege
and
fees
due
to
differing
arrangements
for
distribution
and
transfer
agent
fees.
The
following
summarizes
the Funds'
significant
accounting
policies. 
a.
Financial
Instrument
Valuation 
The Funds'
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The Funds calculate the
net
asset
value
(NAV)
per
share
each
business
day
as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the
Trust's
Board
of
Trustees
(the
Board),
the
Funds' administrator
has
responsibility
for
oversight
of
valuation,
including
leading
the
cross-functional
Valuation
Committee
(VC).
The
Funds
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value. 
Debt
securities
generally
trade
in
the
over-the-counter
(OTC)
market
rather
than
on
a
securities
exchange.
The
Funds'
pricing
services
use
multiple
valuation
techniques
to
determine
fair
value.
In
instances
where
sufficient
market
activity
exists,
the
pricing
services
may
utilize
a
market-based
approach
through
which
quotes
from
market
makers
are
used
to
determine
fair
value.
In
instances
where
sufficient
market
activity
may
not
exist
or
is
limited,
the
pricing
services
also
utilize
proprietary
valuation
models
which
may
consider
market
characteristics
such
as
benchmark
yield
curves,
credit
spreads,
estimated
default
rates,
anticipated
market
interest
rate
volatility,
coupon
rates,
anticipated
timing
of
principal
repayments,
underlying
collateral,
and
other
unique
security
features
in
order
to
estimate
the
relevant
cash
flows,
which
are
then
discounted
to
calculate
the
fair
value.
The
Funds
have
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the
Funds
primarily
employ
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
book
values,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
b.
Securities
Purchased
on
a
When-Issued
or
Delayed
Delivery
Basis
Certain
or
all
Funds
purchase
securities
on
a
when-issued
or
delayed
delivery
basis,
with
payment
and
delivery
scheduled
for
a
future
date.
These
transactions
are
subject
to
market
fluctuations
and
are
subject
to
the
risk
that
the
value
at
delivery
may
be
more
or
less
than
the
trade
date
purchase
price.
Although
the
Funds
will
generally
purchase
these
securities
with
the
intention
of
holding
the
securities,
they
may
sell
the
securities
before
the
settlement
date.
c.
Income
Taxes
It
is each
Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. Each
Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
income
and
net
realized
gains
to
relieve
it
from
federal
income
and excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
Each
Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
161
franklintempleton.com
Annual
Report
based
on
its
technical
merits.
As
of
February
28,
2022, each
Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
Open
tax
years
are
those
that
remain
subject
to
examination
and
are
based
on
the
statute
of
limitations
in
each
jurisdiction
in
which
the
Fund
invests. 
d.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification
basis.
Interest
income
and
estimated
expenses
are
accrued
daily.
Amortization
of
premium
and
accretion
of
discount
on
debt
securities
are
included
in
interest
income.
Dividends
from
net
investment
income
are
normally
declared
daily;
these
dividends
may
be
reinvested
or
paid
monthly
to
shareholders.
Distributions
from
realized
capital
gains
and
other
distributions,
if
any,
are
recorded
on
the
ex-dividend
date.
Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
Common
expenses
incurred
by
the
Trust
are
allocated
among
the
Funds
based
on
the
ratio
of
net
assets
of
each
Fund
to
the
combined
net
assets
of
the
Trust
or
based
on
the
ratio
of
number
of
shareholders
of
each
Fund
to
the
combined
number
of
shareholders
of
the
Trust.
Fund
specific
expenses
are
charged
directly
to
the
Fund
that
incurred
the
expense.
Realized
and
unrealized
gains
and
losses
and
net
investment
income,
excluding
class
specific
expenses,
are
allocated
daily
to
each
class
of
shares
based
upon
the
relative
proportion
of
net
assets
of
each
class.
Differences
in
per
share
distributions
by
class
are
generally
due
to
differences
in
class
specific
expenses.
e.
Insurance
The
scheduled
payments
of
interest
and
principal
for
each
insured
municipal
security
in
the
Trust
are
insured
by
either
a
new
issue
insurance
policy
or
a
secondary
insurance
policy.
Some
municipal
securities
in
the
Funds
are
secured
by
collateral
guaranteed
by
an
agency
of
the
U.S.
government.
Depending
on
the
type
of
coverage,
premiums
for
insurance
are
either
added
to
the
cost
basis
of
the
security
or
paid
by
a
third
party.
Insurance
companies
typically
insure
municipal
bonds
that
tend
to
be
of
very
high
quality,
with
the
majority
of
underlying
municipal
bonds
rated
A
or
better.
However,
an
event
involving
an
insurer
could
have
an
adverse
effect
on
the
value
of
the
securities
insured
by
that
insurance
company.
There
can
be
no
assurance
the
insurer
will
be
able
to
fulfill
its
obligations
under
the
terms
of
the
policy.
f.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
g.
Guarantees
and
Indemnifications
Under
the
Trust’s
organizational
documents,
its
officers
and
trustees
are
indemnified
by
the
Trust
against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Trust.
Additionally,
in
the
normal
course
of
business,
the
Trust,
on
behalf
of
the
Funds,
enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The
Trust's
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the
Trust
that
have
not
yet
occurred.
Currently,
the
Trust
expects
the
risk
of
loss
to
be
remote.
1.
Organization
and
Significant
Accounting
Policies
(continued)
c.
Income
Taxes
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
162
franklintempleton.com
Annual
Report
2.
Shares
of
Beneficial
Interest
At
February
28,
2022,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Funds'
shares
were
as
follows:
Franklin
Arizona
Tax-Free
Income
Fund
Franklin
Colorado
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
A
Class
A
Shares:
Year
ended
February
28,
2022
Shares
sold
a
...................................
7,714,335
$85,144,924
4,472,637
$52,999,381
Shares
issued
in
reinvestment
of
distributions
..........
386,374
4,246,461
233,099
2,744,987
Shares
redeemed
...............................
(4,254,239)
(46,585,483)
(2,403,990)
(28,371,660)
Net
increase
(decrease)
..........................
3,846,470
$42,805,902
2,301,746
$27,372,708
Year
ended
February
28,
2021
Shares
sold
a
...................................
7,244,117
$79,541,550
4,235,805
$49,780,867
Shares
issued
in
reinvestment
of
distributions
..........
294,516
3,225,139
189,758
2,226,350
Shares
redeemed
...............................
(3,361,122)
(35,906,527)
(1,523,372)
(17,641,785)
Net
increase
(decrease)
..........................
4,177,511
$46,860,162
2,902,191
$34,365,432
Class
A1
Class
A1
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
1,829,516
$20,152,752
1,506,967
$17,802,515
Shares
issued
in
reinvestment
of
distributions
..........
1,073,064
11,780,446
731,178
8,613,676
Shares
redeemed
...............................
(6,809,090)
(74,800,940)
(4,445,453)
(52,423,451)
Net
increase
(decrease)
..........................
(3,906,510)
$(42,867,742)
(2,207,308)
$(26,007,260)
Year
ended
February
28,
2021
Shares
sold
...................................
2,458,190
$27,013,414
1,382,548
$16,228,690
Shares
issued
in
reinvestment
of
distributions
..........
1,256,799
13,717,944
859,113
10,063,767
Shares
redeemed
...............................
(10,168,717)
(110,232,572)
(5,992,062)
(70,042,783)
Net
increase
(decrease)
..........................
(6,453,728)
$(69,501,214)
(3,750,401)
$(43,750,326)
Class
C
Class
C
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
458,085
$5,137,582
332,384
$3,979,825
Shares
issued
in
reinvestment
of
distributions
..........
94,044
1,051,174
60,714
724,639
Shares
redeemed
a
..............................
(2,137,405)
(23,970,748)
(1,577,266)
(18,944,671)
Net
increase
(decrease)
..........................
(1,585,276)
$(17,781,992)
(1,184,168)
$(14,240,207)
Year
ended
February
28,
2021
Shares
sold
...................................
1,071,876
$11,946,167
532,785
$6,337,932
Shares
issued
in
reinvestment
of
distributions
..........
125,833
1,396,978
92,304
1,093,934
Shares
redeemed
a
..............................
(2,150,868)
(23,882,666)
(1,795,226)
(21,330,966)
Net
increase
(decrease)
..........................
(953,159)
$(10,539,521)
(1,170,137)
$(13,899,100)
Class
R6
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
163
franklintempleton.com
Annual
Report
Franklin
Arizona
Tax-Free
Income
Fund
Franklin
Colorado
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
R6
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
1,307,226
$14,448,374
680,019
$8,045,020
Shares
issued
in
reinvestment
of
distributions
..........
63,277
696,512
43,985
518,148
Shares
redeemed
...............................
(692,123)
(7,620,516)
(304,230)
(3,575,402)
Net
increase
(decrease)
..........................
678,380
$7,524,370
419,774
$4,987,766
Year
ended
February
28,
2021
Shares
sold
...................................
726,108
$7,966,797
633,977
$7,453,148
Shares
issued
in
reinvestment
of
distributions
..........
45,725
501,232
34,540
405,335
Shares
redeemed
...............................
(318,524)
(3,446,462)
(212,913)
(2,472,147)
Net
increase
(decrease)
..........................
453,309
$5,021,567
455,604
$5,386,336
Advisor
Class
Advisor
Class
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
4,941,909
$54,567,705
3,284,834
$38,820,175
Shares
issued
in
reinvestment
of
distributions
..........
364,516
4,011,963
272,138
3,205,093
Shares
redeemed
...............................
(4,505,159)
(49,698,657)
(2,825,782)
(33,193,728)
Net
increase
(decrease)
..........................
801,266
$8,881,011
731,190
$8,831,540
Year
ended
February
28,
2021
Shares
sold
...................................
9,620,652
$105,308,514
3,508,237
$41,166,277
Shares
issued
in
reinvestment
of
distributions
..........
306,133
3,356,034
258,205
3,026,967
Shares
redeemed
...............................
(5,089,293)
(55,339,671)
(2,103,536)
(24,464,935)
Net
increase
(decrease)
..........................
4,837,492
$53,324,877
1,662,906
$19,728,309
Franklin
Connecticut
Tax-Free
Income
Fund
Franklin
Michigan
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
A
Class
A
Shares:
Year
ended
February
28,
2022
Shares
sold
a
...................................
1,252,852
$12,867,370
4,266,306
$50,807,252
Shares
issued
in
reinvestment
of
distributions
..........
57,395
585,152
209,746
2,482,351
Shares
redeemed
...............................
(652,099)
(6,648,789)
(1,797,465)
(21,300,291)
Net
increase
(decrease)
..........................
658,148
$6,803,733
2,678,587
$31,989,312
Year
ended
February
28,
2021
Shares
sold
a
...................................
1,034,345
$10,585,813
4,111,104
$48,942,553
Shares
issued
in
reinvestment
of
distributions
..........
56,036
571,470
154,374
1,835,920
Shares
redeemed
...............................
(374,417)
(3,816,966)
(1,400,617)
(16,471,239)
Net
increase
(decrease)
..........................
715,964
$7,340,317
2,864,861
$34,307,234
Class
A1
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
164
franklintempleton.com
Annual
Report
Franklin
Connecticut
Tax-Free
Income
Fund
Franklin
Michigan
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
A1
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
254,596
$2,607,607
1,492,625
$17,717,018
Shares
issued
in
reinvestment
of
distributions
..........
222,855
2,271,328
1,156,044
13,680,530
Shares
redeemed
...............................
(1,701,245)
(17,349,209)
(5,765,739)
(68,344,526)
Net
increase
(decrease)
..........................
(1,223,794)
$(12,470,274)
(3,117,070)
$(36,946,978)
Year
ended
February
28,
2021
Shares
sold
...................................
206,808
$2,121,286
1,433,366
$17,000,438
Shares
issued
in
reinvestment
of
distributions
..........
305,191
3,106,674
1,290,262
15,309,544
Shares
redeemed
...............................
(1,597,359)
(16,248,414)
(5,418,616)
(64,132,894)
Net
increase
(decrease)
..........................
(1,085,360)
$(11,020,454)
(2,694,988)
$(31,822,912)
Class
C
Class
C
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
63,756
$658,339
671,228
$8,097,214
Shares
issued
in
reinvestment
of
distributions
..........
14,935
153,739
72,047
867,553
Shares
redeemed
a
..............................
(643,185)
(6,653,722)
(2,088,172)
(25,271,355)
Net
increase
(decrease)
..........................
(564,494)
$(5,841,644)
(1,344,897)
$(16,306,588)
Year
ended
February
28,
2021
Shares
sold
...................................
117,132
$1,211,945
719,434
$8,673,577
Shares
issued
in
reinvestment
of
distributions
..........
32,975
338,279
99,557
1,200,188
Shares
redeemed
a
..............................
(803,408)
(8,273,045)
(2,169,179)
(26,123,485)
Net
increase
(decrease)
..........................
(653,301)
$(6,722,821)
(1,350,188)
$(16,249,720)
Class
R6
Class
R6
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
54,704
$560,112
547,473
$6,540,638
Shares
issued
in
reinvestment
of
distributions
..........
1,623
16,520
18,487
219,263
Shares
redeemed
...............................
(8,167)
(83,489)
(108,752)
(1,290,227)
Net
increase
(decrease)
..........................
48,160
$493,143
457,208
$5,469,674
Year
ended
February
28,
2021
Shares
sold
...................................
112,431
$1,148,971
224,922
$2,696,167
Shares
issued
in
reinvestment
of
distributions
..........
967
9,862
10,039
119,705
Shares
redeemed
...............................
(5,879)
(60,212)
(54,636)
(649,046)
Net
increase
(decrease)
..........................
107,519
$1,098,621
180,325
$2,166,826
Advisor
Class
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
165
franklintempleton.com
Annual
Report
Franklin
Connecticut
Tax-Free
Income
Fund
Franklin
Michigan
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Advisor
Class
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
377,343
$3,853,072
2,274,240
$27,097,532
Shares
issued
in
reinvestment
of
distributions
..........
36,349
370,117
215,684
2,559,916
Shares
redeemed
...............................
(406,716)
(4,145,571)
(1,692,535)
(20,029,833)
Net
increase
(decrease)
..........................
6,976
$77,618
797,389
$9,627,615
Year
ended
February
28,
2021
Shares
sold
...................................
461,043
$4,702,445
3,198,942
$38,151,167
Shares
issued
in
reinvestment
of
distributions
..........
41,944
426,862
182,824
2,178,074
Shares
redeemed
...............................
(368,602)
(3,739,334)
(1,396,223)
(16,503,669)
Net
increase
(decrease)
..........................
134,385
$1,389,973
1,985,543
$23,825,572
Franklin
Minnesota
Tax-Free
Income
Fund
Franklin
Ohio
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
A
Class
A
Shares:
Year
ended
February
28,
2022
Shares
sold
a
...................................
5,412,784
$68,834,002
8,369,403
$109,334,446
Shares
issued
in
reinvestment
of
distributions
..........
254,022
3,208,128
431,089
5,592,924
Shares
redeemed
...............................
(2,571,325)
(32,500,832)
(3,925,901)
(50,911,586)
Net
increase
(decrease)
..........................
3,095,481
$39,541,298
4,874,591
$64,015,784
Year
ended
February
28,
2021
Shares
sold
a
...................................
6,361,332
$80,760,433
9,649,679
$126,453,776
Shares
issued
in
reinvestment
of
distributions
..........
182,833
2,319,795
345,058
4,507,300
Shares
redeemed
...............................
(1,363,175)
(17,244,364)
(1,847,795)
(24,036,324)
Net
increase
(decrease)
..........................
5,180,990
$65,835,864
8,146,942
$106,924,752
Class
A1
Class
A1
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
2,282,890
$28,976,867
2,167,949
$28,223,453
Shares
issued
in
reinvestment
of
distributions
..........
779,659
9,852,776
1,342,913
17,428,392
Shares
redeemed
...............................
(7,743,718)
(97,696,405)
(7,732,518)
(100,587,980)
Net
increase
(decrease)
..........................
(4,681,169)
$(58,866,762)
(4,221,656)
$(54,936,135)
Year
ended
February
28,
2021
Shares
sold
...................................
2,942,746
$37,347,611
3,388,310
$44,303,438
Shares
issued
in
reinvestment
of
distributions
..........
864,839
10,957,917
1,667,870
21,754,624
Shares
redeemed
...............................
(4,897,292)
(61,746,249)
(8,453,793)
(109,746,273)
Net
increase
(decrease)
..........................
(1,089,707)
$(13,440,721)
(3,397,613)
$(43,688,211)
Class
C
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
166
franklintempleton.com
Annual
Report
Franklin
Minnesota
Tax-Free
Income
Fund
Franklin
Ohio
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
C
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
757,701
$9,750,442
1,134,750
$15,005,993
Shares
issued
in
reinvestment
of
distributions
..........
101,351
1,296,546
166,589
2,193,708
Shares
redeemed
a
..............................
(2,860,260)
(36,763,175)
(4,374,124)
(57,895,887)
Net
increase
(decrease)
..........................
(2,001,208)
$(25,716,187)
(3,072,785)
$(40,696,186)
Year
ended
February
28,
2021
Shares
sold
...................................
1,168,004
$14,996,304
2,185,646
$28,972,016
Shares
issued
in
reinvestment
of
distributions
..........
140,410
1,797,919
253,462
3,350,566
Shares
redeemed
a
..............................
(3,409,912)
(43,632,074)
(4,693,646)
(62,118,979)
Net
increase
(decrease)
..........................
(2,101,498)
$(26,837,851)
(2,254,538)
$(29,796,397)
Class
R6
Class
R6
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
404,767
$5,140,952
626,630
$8,163,716
Shares
issued
in
reinvestment
of
distributions
..........
25,867
327,194
33,911
440,361
Shares
redeemed
...............................
(173,165)
(2,187,555)
(267,841)
(3,452,177)
Net
increase
(decrease)
..........................
257,469
$3,280,591
392,700
$5,151,900
Year
ended
February
28,
2021
Shares
sold
...................................
513,150
$6,533,582
625,158
$8,172,934
Shares
issued
in
reinvestment
of
distributions
..........
18,848
239,437
24,608
321,681
Shares
redeemed
...............................
(187,683)
(2,336,910)
(140,164)
(1,815,305)
Net
increase
(decrease)
..........................
344,315
$4,436,109
509,602
$6,679,310
Advisor
Class
Advisor
Class
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
5,575,188
$70,700,419
4,909,297
$63,808,968
Shares
issued
in
reinvestment
of
distributions
..........
417,122
5,275,050
492,823
6,401,759
Shares
redeemed
...............................
(3,515,972)
(44,424,057)
(4,479,469)
(58,114,256)
Net
increase
(decrease)
..........................
2,476,338
$31,551,412
922,651
$12,096,471
Year
ended
February
28,
2021
Shares
sold
...................................
6,577,137
$83,615,348
7,203,962
$94,138,108
Shares
issued
in
reinvestment
of
distributions
..........
360,616
4,577,268
486,581
6,356,473
Shares
redeemed
...............................
(3,439,987)
(43,241,741)
(3,252,365)
(42,313,937)
Net
increase
(decrease)
..........................
3,497,766
$44,950,875
4,438,178
$58,180,644
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
167
franklintempleton.com
Annual
Report
Franklin
Oregon
Tax-Free
Income
Fund
Franklin
Pennsylvania
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
A
Class
A
Shares:
Year
ended
February
28,
2022
Shares
sold
a
...................................
5,979,219
$71,057,962
6,089,792
$61,181,720
Shares
issued
in
reinvestment
of
distributions
..........
384,848
4,547,566
313,724
3,128,557
Shares
redeemed
...............................
(3,038,964)
(35,985,372)
(2,939,249)
(29,240,948)
Net
increase
(decrease)
..........................
3,325,103
$39,620,156
3,464,267
$35,069,329
Year
ended
February
28,
2021
Shares
sold
a
...................................
7,197,423
$85,208,934
6,403,246
$63,684,740
Shares
issued
in
reinvestment
of
distributions
..........
332,646
3,926,814
292,344
2,900,055
Shares
redeemed
...............................
(2,488,807)
(29,226,336)
(2,311,207)
(22,972,618)
Net
increase
(decrease)
..........................
5,041,262
$59,909,412
4,384,383
$43,612,177
Class
A1
Class
A1
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
2,223,756
$26,399,387
1,544,083
$15,457,057
Shares
issued
in
reinvestment
of
distributions
..........
1,298,835
15,343,656
1,359,150
13,561,421
Shares
redeemed
...............................
(8,341,594)
(98,706,801)
(7,822,420)
(78,127,618)
Net
increase
(decrease)
..........................
(4,819,003)
$(56,963,758)
(4,919,187)
$(49,109,140)
Year
ended
February
28,
2021
Shares
sold
...................................
3,066,962
$36,064,439
1,974,510
$19,615,851
Shares
issued
in
reinvestment
of
distributions
..........
1,544,775
18,204,251
1,778,676
17,622,820
Shares
redeemed
...............................
(8,095,427)
(94,883,639)
(8,436,928)
(83,648,908)
Net
increase
(decrease)
..........................
(3,483,690)
$(40,614,949)
(4,683,742)
$(46,410,237)
Class
C
Class
C
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
648,203
$7,791,214
585,346
$5,932,881
Shares
issued
in
reinvestment
of
distributions
..........
106,566
1,279,921
127,482
1,290,837
Shares
redeemed
a
..............................
(2,779,969)
(33,519,226)
(4,681,145)
(47,674,744)
Net
increase
(decrease)
..........................
(2,025,200)
$(24,448,091)
(3,968,317)
$(40,451,026)
Year
ended
February
28,
2021
Shares
sold
...................................
1,155,257
$13,856,155
922,472
$9,291,053
Shares
issued
in
reinvestment
of
distributions
..........
161,968
1,937,881
244,818
2,457,260
Shares
redeemed
a
..............................
(3,573,569)
(42,648,300)
(4,964,544)
(50,010,988)
Net
increase
(decrease)
..........................
(2,256,344)
$(26,854,264)
(3,797,254)
$(38,262,675)
Class
R6
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
168
franklintempleton.com
Annual
Report
3.
Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and
trustees
of
the
Trust
are
also
officers
and/or
directors
of
the
following
subsidiaries:
Franklin
Oregon
Tax-Free
Income
Fund
Franklin
Pennsylvania
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
R6
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
740,248
$8,770,401
245,271
$2,462,160
Shares
issued
in
reinvestment
of
distributions
..........
48,100
568,471
11,345
113,246
Shares
redeemed
...............................
(449,877)
(5,328,038)
(89,946)
(905,288)
Net
increase
(decrease)
..........................
338,471
$4,010,834
166,670
$1,670,118
Year
ended
February
28,
2021
Shares
sold
...................................
596,088
$7,045,338
207,493
$2,068,565
Shares
issued
in
reinvestment
of
distributions
..........
43,127
508,830
8,632
85,741
Shares
redeemed
...............................
(335,234)
(3,940,202)
(68,794)
(669,715)
Net
increase
(decrease)
..........................
303,981
$3,613,966
147,331
$1,484,591
Advisor
Class
Advisor
Class
Shares:
Year
ended
February
28,
2022
Shares
sold
...................................
4,918,456
$58,342,910
2,414,071
$24,190,653
Shares
issued
in
reinvestment
of
distributions
..........
315,822
3,734,248
224,312
2,241,168
Shares
redeemed
...............................
(4,026,619)
(47,603,486)
(2,222,791)
(22,245,609)
Net
increase
(decrease)
..........................
1,207,659
$14,473,672
415,592
$4,186,212
Year
ended
February
28,
2021
Shares
sold
...................................
4,864,957
$57,571,723
3,240,254
$32,276,512
Shares
issued
in
reinvestment
of
distributions
..........
303,092
3,578,639
248,305
2,465,047
Shares
redeemed
...............................
(2,644,263)
(31,088,015)
(2,524,888)
(25,088,004)
Net
increase
(decrease)
..........................
2,523,786
$30,062,347
963,671
$9,653,555
a
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
Subsidiary
Affiliation
Franklin
Advisers,
Inc.
(Advisers)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Distributors,
LLC
(Distributors)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
169
franklintempleton.com
Annual
Report
a.
Management
Fees
The
Funds
pay
an
investment
management
fee
to
Advisers
based
on
the
month-end
net
assets
of
each
of
the
Funds
as
follows:
For
the
year
ended
February
28,
2022,
each
Fund's
gross
effective
investment
management
fee
rate
based
on
average
daily
net
assets
was
as
follows:
b.
Administrative
Fees
Under
an
agreement
with
Advisers,
FT
Services
provides
administrative
services
to
the
Funds.
The
fee
is
paid
by
Advisers
based
on
each
of
the
Funds'
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Funds.
Annualized
Fee
Rate
Net
Assets
0.625%
Up
to
and
including
$100
million
0.500%
Over
$100
million,
up
to
and
including
$250
million
0.450%
Over
$250
million,
up
to
and
including
$7.5
billion
0.440%
Over
$7.5
billion,
up
to
and
including
$10
billion
0.430%
Over
$10
billion,
up
to
and
including
$12.5
billion
0.420%
Over
$12.5
billion,
up
to
and
including
$15
billion
0.400%
Over
$15
billion,
up
to
and
including
$17.5
billion
0.380%
Over
$17.5
billion,
up
to
and
including
$20
billion
0.360%
In
excess
of
$20
billion
Franklin
Arizona
Tax-
Free
Income
Fund
Franklin
Colorado
Tax-
Free
Income
Fund
Franklin
Connecticut
Tax-Free
Income
Fund
Gross
effective
investment
management
fee
rate
........
0.474%
0.482%
0.561%
Franklin
Michigan
Tax-
Free
Income
Fund
Franklin
Minnesota
Tax-
Free
Income
Fund
Franklin
Ohio
Tax-Free
Income
Fund
Gross
effective
investment
management
fee
rate
........
0.475%
0.471%
0.464%
Franklin
Oregon
Tax-
Free
Income
Fund
Franklin
Pennsylvania
Tax-Free
Income
Fund
Gross
effective
investment
management
fee
rate
........
0.468%
0.472%
3.
Transactions
with
Affiliates
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
170
franklintempleton.com
Annual
Report
c.
Distribution
Fees
The
Board
has
adopted
distribution
plans
for
each
share
class,
with
the
exception
of
Class
R6
and
Advisor
Class
shares,
pursuant
to
Rule
12b-1
under
the
1940
Act.
Under
the
Funds’
Class
A
and
A1
reimbursement
distribution
plans,
the
Funds
reimburse
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of
each
Fund's
shares
up
to
the
maximum
annual
plan
rate
for
each
class.
Under
the
Class
A
and
Class
A1
reimbursement
distribution
plans,
costs
exceeding
the
maximum
for
the
current
plan
year
cannot
be
reimbursed
in
subsequent
periods.
In
addition,
under
the
Funds’
Class
C
compensation
distribution
plans,
the
Funds
pay
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of
each
Fund's
shares
up
to
the
maximum
annual
plan
rate.
The
plan
year,
for
purposes
of
monitoring
compliance
with
the
maximum
annual
plan
rates,
is
February
1
through
January
31
for
each
Fund.
The
maximum
annual
plan
rates,
based
on
the
average
daily
net
assets,
for
each
class,
are
as
follows:
d.
Sales
Charges/Underwriting
Agreements
Front-end
sales
charges
and
contingent
deferred
sales
charges
(CDSC)
do
not
represent
expenses
of
the
Funds.
These
charges
are
deducted
from
the
proceeds
of
sales
of
fund
shares
prior
to
investment
or
from
redemption
proceeds
prior
to
remittance,
as
applicable.
Distributors
has
advised
the
Funds
of
the
following
commission
transactions
related
to
the
sales
and
redemptions
of
the
Funds'
shares
for
the
year:
e.
Transfer
Agent
Fees
Each
class
of
shares
pays
transfer
agent
fees
to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations.
The
fees
are
based
on
an
annualized
asset
based
fee
of
0.02%
plus
a
transaction
based
fee.
In
addition,
each
class
reimburses
Investor
Services
for
out
of
pocket
expenses
incurred
and,
except
for
Class
R6,
reimburses
shareholder
servicing
fees
paid
to
third
parties.
These
fees
are
allocated
daily
based
upon
their
relative
proportion
of
such
classes'
aggregate
net
assets.
Class
R6
pays
Investor
Services
transfer
agent
fees
specific
to
that
class.
For
the
year
ended
February
28,
2022,
the
Funds
paid
transfer
agent
fees
as
noted
in
the
Statements
of
Operations
of
which
the
following
amounts
were
retained
by
Investor
Services:
Class
A
....................................................................................
0.25%
Class
A1
...................................................................................
0.10%
Class
C
....................................................................................
0.65%
Franklin
Arizona
Tax-
Free
Income
Fund
Franklin
Colorado
Tax-
Free
Income
Fund
Franklin
Connecticut
Tax-Free
Income
Fund
Franklin
Michigan
Tax-
Free
Income
Fund
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..................
$22,735
$17,587
$3,449
$24,015
CDSC
retained
...........................
$43,945
$25,039
$103
$17,189
Franklin
Minnesota
Tax-
Free
Income
Fund
Franklin
Ohio
Tax-Free
Income
Fund
Franklin
Oregon
Tax-
Free
Income
Fund
Franklin
Pennsylvania
Tax-Free
Income
Fund
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..................
$24,746
$42,323
$29,328
$23,574
CDSC
retained
...........................
$22,236
$84,794
$54,185
$14,043
3.
Transactions
with
Affiliates
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
171
franklintempleton.com
Annual
Report
f.
Waiver
and
Expense
Reimbursements
Investor
Services
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
so
that
the
Class
R6
transfer
agent
fees
do
not
exceed
0.03%
based
on
the
average
net
assets
of
the
class
until
June
30,
2022.
Effective
April
1,
2022,
Advisers
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
and
to
assume
as
its
own
expense
certain
expenses
otherwise
payable
by
the
Funds
so
that
the
operating
expenses
(excluding
Rule
12b-1
fees,
acquired
fund
fees
and
expenses
and
certain
non-routine
expenses)
for
each
class
of
the
Funds
do
not
exceed
0.65%,
based
on
the
average
net
assets
of
each
class
until
June
30,
2023.
Total
expenses
waived
or
paid
are
not
subject
to
recapture
subsequent
to
the
Funds’
fiscal
year
end.
g.
Interfund
Transactions
Certain
or
all
Funds
engaged
in
purchases
and
sales
of
investments
with
funds
or
other
accounts
that
have
common
investment
managers
(or
affiliated
investment
managers),
directors,
trustees
or
officers.
These
purchases,
sales
and
the
related
net
realized
gains
(losses),
if
any,
for
the
year
ended
February
28,
2022,
were
as
follows:
Franklin
Arizona
Tax-
Free
Income
Fund
Franklin
Colorado
Tax-
Free
Income
Fund
Franklin
Connecticut
Tax-Free
Income
Fund
Franklin
Michigan
Tax-
Free
Income
Fund
Transfer
agent
fees
........................
$287,440
$222,937
$70,460
$346,974
Franklin
Minnesota
Tax-
Free
Income
Fund
Franklin
Ohio
Tax-Free
Income
Fund
Franklin
Oregon
Tax-
Free
Income
Fund
Franklin
Pennsylvania
Tax-Free
Income
Fund
Transfer
agent
fees
........................
$353,525
$496,675
$359,553
$366,652
Franklin
Arizona
Tax-
Free
Income
Fund
Franklin
Colorado
Tax-
Free
Income
Fund
Franklin
Connecticut
Tax-Free
Income
Fund
Franklin
Michigan
Tax-
Free
Income
Fund
Purchases
..............................
$47,372,190
$19,820,243
—
$33,700,601
Sales
..................................
$48,200,000
$17,077,761
—
$36,960,564
Realized
gain
(loss)
.......................
—
$(231,032)
—
$(521,423)
Franklin
Minnesota
Tax-
Free
Income
Fund
Franklin
Ohio
Tax-Free
Income
Fund
Franklin
Oregon
Tax-
Free
Income
Fund
Franklin
Pennsylvania
Tax-Free
Income
Fund
Purchases
..............................
$30,851,840
$31,798,709
$65,409,261
$43,771,892
Sales
..................................
$52,861,720
$24,787,055
$103,216,177
$41,422,587
Realized
gain
(loss)
.......................
$(223,592)
$(447,790)
$(257,136)
$(401,855)
3.
Transactions
with
Affiliates
(continued)
e.
Transfer
Agent
Fees
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
172
franklintempleton.com
Annual
Report
4.
Expense
Offset
Arrangement
The
Funds
have entered
into
an
arrangement
with
their
custodian
whereby
credits
realized
as
a
result
of
uninvested
cash
balances
are
used
to
reduce
a
portion
of
the
Funds'
custodian
expenses. 
During
the 
year
ended
February
28
,
202
2
 the
custodian
fees
were
reduced
as
noted
in
the
Statements
of
Operations.
5.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains. 
At
February
28,
2022,
the
capital
loss
carryforwards
were
as
follows:
During
the
year
ended
February
28,
2022,
the
following Funds
utilized
capital
loss
carryforwards
as
follows:
The
tax
character
of
distributions
paid
during
the
years
ended
February
28,
2022
and
2021,
was
as
follows:
Franklin
Arizona
Tax-
Free
Income
Fund
Franklin
Colorado
Tax-
Free
Income
Fund
Franklin
Connecticut
Tax-Free
Income
Fund
Franklin
Michigan
Tax-
Free
Income
Fund
1
1
1
1
1
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
.............................
$
19,013,037
$
20,228,256
$
8,410,732
$
14,834,456
Long
term
.............................
44,087,182
29,901,318
26,110,261
46,326,789
Total
capital
loss
carryforwards
............
$63,100,219
$50,129,574
$34,520,993
$61,161,245
Franklin
Minnesota
Tax-
Free
Income
Fund
Franklin
Ohio
Tax-Free
Income
Fund
Franklin
Oregon
Tax-
Free
Income
Fund
Franklin
Pennsylvania
Tax-Free
Income
Fund
1
1
1
1
1
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
.............................
$
10,170,551
$
26,414,063
$
26,212,780
$
14,371,716
Long
term
.............................
2,345,898
10,417,101
53,483,619
70,960,599
Total
capital
loss
carryforwards
............
$12,516,449
$36,831,164
$79,696,399
$85,332,315
Franklin
Colorado
Tax-
Free
Income
Fund
Franklin
Connecticut
Tax-Free
Income
Fund
Franklin
Michigan
Tax-
Free
Income
Fund
Franklin
Pennsylvania
Tax-Free
Income
Fund
Capital
loss
utilized
carryforwards
....
$683,675
$584,645
$5,303,419
$8,286,259
Franklin
Arizona
Tax-Free
Income
Fund
Franklin
Colorado
Tax-Free
Income
Fund
2022
2021
2022
2021
Distributions
paid
from:
Ordinary
income
........................
$93,766
$—
$—
$—
Tax
exempt
income
......................
24,259,101
25,363,713
16,631,004
17,958,187
$24,352,867
$25,363,713
$16,631,004
$17,958,187
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
173
franklintempleton.com
Annual
Report
At
February
28,
2022,
the
cost
of
investments,
net
unrealized
appreciation
(depreciation),
undistributed
tax
exempt
income
and
undistributed
ordinary
income
for
income
tax
purposes
were
as
follows:
Franklin
Connecticut
Tax-Free
Income
Fund
Franklin
Michigan
Tax-Free
Income
Fund
2022
2021
2022
2021
Distributions
paid
from:
Tax
exempt
income
......................
$4,112,118
$5,419,976
$22,087,253
$23,569,170
Franklin
Minnesota
Tax-Free
Income
Fund
Franklin
Ohio
Tax-Free
Income
Fund
2022
2021
2022
2021
Distributions
paid
from:
Ordinary
income
........................
$151,761
$—
$287,417
$—
Tax
exempt
income
......................
21,256,716
21,738,050
33,820,077
39,262,285
$21,408,477
$21,738,050
$34,107,494
$39,262,285
Franklin
Oregon
Tax-Free
Income
Fund
Franklin
Pennsylvania
Tax-Free
Income
Fund
2022
2021
2022
2021
Distributions
paid
from:
Tax
exempt
income
......................
$26,818,763
$30,122,334
$22,202,850
$28,360,168
Franklin
Arizona
Tax-
Free
Income
Fund
Franklin
Colorado
Tax-
Free
Income
Fund
Franklin
Connecticut
Tax-Free
Income
Fund
Franklin
Michigan
Tax-
Free
Income
Fund
a
a
a
a
a
Cost
of
investments
.......................
$933,406,669
$684,598,172
$179,214,679
$892,296,271
Unrealized
appreciation
.....................
$46,763,212
$33,124,556
$5,731,748
$38,923,826
Unrealized
depreciation
.....................
(10,502,961)
(5,704,110)
(3,006,661)
(11,144,621)
Net
unrealized
appreciation
(depreciation)
.......
$36,260,251
$27,420,446
$2,725,087
$27,779,205
Distributable
earnings:
Undistributed
ordinary
income
................
$187
$126,505
$13,100
$65,561
Undistributed
tax
exempt
income
..............
$—
$393,325
$67,320
$179,210
Total
distributable
earnings
..................
$187
$519,830
$80,420
$244,771
5.
Income
Taxes
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
174
franklintempleton.com
Annual
Report
6.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities)
for
the
year
ended
February
28,
2022,
were
as
follows:
7.
Defaulted
Securities
Certain
or
all
Funds
held
defaulted
securities
and/or
other
securities
for
which
the
income
has
been
deemed
uncollectible.
The
Funds
discontinue
accruing
income
on
securities
for
which
income
has
been
deemed
uncollectible
and
provide
an
estimate
for
losses
on
interest
receivable.
The
securities
have
been
identified
in
the
accompanying
Statements
of
Investments.
At
February
28
,
202
2
,
the
aggregate
value
of
these
securities
was
as
follows:
Franklin
Minnesota
Tax-
Free
Income
Fund
Franklin
Ohio
Tax-Free
Income
Fund
Franklin
Oregon
Tax-
Free
Income
Fund
Franklin
Pennsylvania
Tax-Free
Income
Fund
a
a
a
a
a
Cost
of
investments
.......................
$1,003,472,492
$1,561,736,713
$1,191,985,388
$939,980,336
Unrealized
appreciation
.....................
$38,279,997
$68,358,646
$55,925,720
$26,842,061
Unrealized
depreciation
.....................
(11,717,617)
(17,260,386)
(8,720,909)
(14,634,683)
Net
unrealized
appreciation
(depreciation)
.......
$26,562,380
$51,098,260
$47,204,811
$12,207,378
Distributable
earnings:
Undistributed
ordinary
income
................
$38,314
$—
$85,188
$90,162
Undistributed
tax
exempt
income
..............
—
—
418,258
1,333,427
Total
distributable
earnings
..................
$38,314
$—
$503,446
$1,423,589
Franklin
Arizona
Tax-
Free
Income
Fund
Franklin
Colorado
Tax-
Free
Income
Fund
Franklin
Connecticut
Tax-Free
Income
Fund
Franklin
Michigan
Tax-
Free
Income
Fund
Purchases
..............................
$175,920,293
$105,264,005
$46,130,707
$223,115,881
Sales
..................................
$175,313,425
$111,460,036
$55,132,347
$210,963,332
Franklin
Minnesota
Tax-
Free
Income
Fund
Franklin
Ohio
Tax-Free
Income
Fund
Franklin
Oregon
Tax-
Free
Income
Fund
Franklin
Pennsylvania
Tax-Free
Income
Fund
Purchases
..............................
$233,744,869
$404,703,957
$255,089,866
$376,949,138
Sales
..................................
$217,472,234
$460,169,057
$264,522,039
$474,773,452
Value
Percentage
of
Net
Assets
Franklin
Oregon
Tax-Free
Income
Fund
...........................................
$
7,295,200
0.6%
Franklin
Pennsylvania
Tax-Free
Income
Fund
......................................
5,362,594
0.5%
5.
Income
Taxes
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
175
franklintempleton.com
Annual
Report
8.
Concentration
of
Risk
Certain
or
all
Funds
invest
a
large
percentage
of
their
total
assets
in
obligations
of
issuers
within
their respective
state
and
U.S.
territories.
Such
concentration
may
subject
the
Funds
to
risks
associated
with
industrial
or
regional
matters,
and
economic,
political
or
legal
developments
occurring
within
those
states
and
U.S.
territories.
Investments
in
these
securities
are
sensitive
to
interest
rate
changes
and
credit
risk
of
the
issuer
and
may
subject
the
Funds
to
increased
market
volatility.
The
market
for
these
investments
may
be
limited,
which
may
make
them
difficult
to
buy
or
sell.
9.
Geopolitical
Risk 
On
February
24,
2022,
Russia
engaged
in
military
actions
in
the
sovereign
territory
of
Ukraine.
The
current
political
and
financial
uncertainty
surrounding
Russia
and
Ukraine
may
increase
market
volatility
and
the
economic
risk
of
investing
in
securities
in
these
countries
and
may
also
cause
uncertainty
for
the
global
economy
and
broader
financial
markets.
The
ultimate
fallout
and
long-term
impact
from
these
events
are
not
known.
The
Funds
will
continue
to
assess
the
impact
on
valuations
and
liquidity
and
will
take
any
potential
actions
needed
in
accordance
with
procedures
approved
by
the
Board
of
Trustees.
10.
Novel
Coronavirus
Pandemic 
The
global
outbreak
of
the
novel
coronavirus
disease,
known
as
COVID-19, has
caused
adverse
effects
on
many
companies,
sectors,
nations,
regions
and
the
markets
in
general, and
may
continue for
an unpredictable duration.
The
effects
of
this
pandemic
may
materially
impact
the
value
and
performance
of
the
Funds, their ability
to
buy
and
sell
fund
investments
at
appropriate
valuations
and their ability
to
achieve their investment
objectives.
11.
Credit
Facility
The
Funds,
together
with
other
U.S.
registered
and
foreign
investment
funds
(collectively,
Borrowers),
managed
by
Franklin
Templeton,
are
borrowers
in
a
joint
syndicated
senior
unsecured
credit
facility
totaling
$2.675
billion
(Global
Credit
Facility)
which
matures
on
February
3,
2023.
This
Global
Credit
Facility
provides
a
source
of
funds
to
the
Borrowers
for
temporary
and
emergency
purposes,
including
the
ability
to
meet
future
unanticipated
or
unusually
large
redemption
requests.
Under
the
terms
of
the
Global
Credit
Facility,
the
Funds
shall,
in
addition
to
interest
charged
on
any
borrowings
made
by
the
Funds
and
other
costs
incurred
by
the
Funds,
pay
their
share
of
fees
and
expenses
incurred
in
connection
with
the
implementation
and
maintenance
of
the
Global
Credit
Facility,
based
upon
their
relative
share
of
the
aggregate
net
assets
of
all
of
the
Borrowers,
including
an
annual
commitment
fee
of
0.15%
based
upon
the
unused
portion
of
the
Global
Credit
Facility.
These
fees
are
reflected
in
other
expenses
in
the
Statements
of
Operations.
During
the
year ended
February
28,
2022,
the
Funds
did
not
use
the
Global
Credit
Facility.
12.
Fair
Value
Measurements
The
Funds
follow
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Funds’
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the
Funds'
financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
–
significant
unobservable
inputs
(including
the
Funds'
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
176
franklintempleton.com
Annual
Report
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
At
February
28,
2022,
all
of
the
Funds'
investments
in
financial
instruments
carried
at
fair
value
were
valued
using
Level
2
inputs.
For
detailed
categories,
see
the
accompanying
Statements
of
Investments.
13.
Subsequent
Events
The
Funds
have
evaluated
subsequent
events
through
the
issuance
of
the
financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure,
other
than
those
already
disclosed
in
the
financial
statements.
Abbreviations
Selected
Portfolio
AGMC
Assured
Guaranty
Municipal
Corp.
BAM
Build
America
Mutual
Assurance
Co.
COP
Certificate
of
Participation
ETM
Escrowed
to
Maturity
FGIC
Financial
Guaranty
Insurance
Co.
FNMA
Federal
National
Mortgage
Association
GNMA
Government
National
Mortgage
Association
GO
General
Obligation
LOC
Letter
of
Credit
NATL
National
Reinsurance
Corp.
SPA
Standby
Purchase
Agreement
XLCA
XL
Capital
Assurance,
Inc.
12.
Fair
Value
Measurements
(continued)
Franklin
Tax-Free
Trust
Report
of
Independent
Registered
Public
Accounting
Firm
177
franklintempleton.com
Annual
Report
To
the
Board
of
Trustees
of
Franklin
Tax-Free
Trust
and
Shareholders
of
Franklin
Arizona
Tax-Free
Income
Fund,
Franklin
Colorado
Tax-Free
Income
Fund,
Franklin
Connecticut
Tax-Free
Income
Fund,
Franklin
Michigan
Tax-Free
Income
Fund,
Franklin
Minnesota
Tax-Free
Income
Fund,
Franklin
Ohio
Tax-Free
Income
Fund,
Franklin
Oregon
Tax-Free
Income
Fund,
and
Franklin
Pennsylvania
Tax-Free
Income
Fund
Opinion
on
the
Financial
Statements
We
have
audited
the
accompanying
statements
of
assets
and
liabilities,
including
the
statements
of
investments,
of
Franklin
Arizona
Tax-Free
Income
Fund,
Franklin
Colorado
Tax-Free
Income
Fund,
Franklin
Connecticut
Tax-Free
Income
Fund,
Franklin
Michigan
Tax-Free
Income
Fund,
Franklin
Minnesota
Tax-Free
Income
Fund,
Franklin
Ohio
Tax-Free
Income
Fund,
Franklin
Oregon
Tax-Free
Income
Fund,
and
Franklin
Pennsylvania
Tax-Free
Income
Fund
(eight
of
the
funds
constituting
Franklin
Tax-Free
Trust,
hereafter
collectively
referred
to
as
the
"Funds")
as
of
February
28,
2022,
the
related
statements
of
operations
for
the
year
ended
February
28,
2022,
the
statements
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
ended
February
28,
2022,
including
the
related
notes,
and
the
financial
highlights
for
each
of
the
periods
indicated
therein
(collectively
referred
to
as
the
“financial
statements”).
In
our
opinion,
the
financial
statements
present
fairly,
in
all
material
respects,
the
financial
position
of
each
of
the
Funds
as
of
February
28,
2022,
the
results
of
each
of
their
operations
for
the
year
then
ended,
the
changes
in
each
of
their
net
assets
for
each
of
the
two
years
in
the
period
ended
February
28,
2022
and
each
of
the
financial
highlights
for
each
of
the
periods
indicated
therein
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America.
Basis
for
Opinions
These
financial
statements
are
the
responsibility
of
the
Funds’
management.
Our
responsibility
is
to
express
an
opinion
on
the
Funds’
financial
statements
based
on
our
audits.
We
are
a
public
accounting
firm
registered
with
the
Public
Company
Accounting
Oversight
Board
(United
States)
(PCAOB)
and
are
required
to
be
independent
with
respect
to
the
Funds
in
accordance
with
the
U.S.
federal
securities
laws
and
the
applicable
rules
and
regulations
of
the
Securities
and
Exchange
Commission
and
the
PCAOB.
We
conducted
our
audits
of
these
financial
statements
in
accordance
with
the
standards
of
the
PCAOB.
Those
standards
require
that
we
plan
and
perform
the
audit
to
obtain
reasonable
assurance
about
whether
the
financial
statements
are
free
of
material
misstatement,
whether
due
to
error
or
fraud.
Our
audits
included
performing
procedures
to
assess
the
risks
of
material
misstatement
of
the
financial
statements,
whether
due
to
error
or
fraud,
and
performing
procedures
that
respond
to
those
risks.
Such
procedures
included
examining,
on
a
test
basis,
evidence
regarding
the
amounts
and
disclosures
in
the
financial
statements.
Our
audits
also
included
evaluating
the
accounting
principles
used
and
significant
estimates
made
by
management,
as
well
as
evaluating
the
overall
presentation
of
the
financial
statements.
Our
procedures
included
confirmation
of
securities
owned
as
of
February
28,
2022
by
correspondence
with
the
custodian
and
brokers;
when
replies
were
not
received
from
brokers,
we
performed
other
auditing
procedures.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinions.
PricewaterhouseCoopers
LLP
San
Francisco,
California
April
18,
2022
We
have
served
as
the
auditor
of
one
or
more
investment
companies
in
the
Franklin
Templeton
Group
of
Funds
since
1948.
Franklin
Tax-Free
Trust
Tax
Information
(unaudited)
178
franklintempleton.com
Annual
Report
By
mid-February,
tax
information
related
to
a
shareholder's
proportionate
share
of
distributions
paid
during
the
preceding
calendar
year
will
be
received,
if
applicable.
Please
also
refer
to
www.franklintempleton.com
for
per
share
tax
information
related
to
any
distributions
paid
during
the
preceding
calendar
year.
Shareholders
are
advised
to
consult
with
their
tax
advisors
for
further
information
on
the
treatment
of
these
amounts
on
their
tax
returns.
The
following
tax
information
for
the
Funds
is
required
to
be
furnished
to
shareholders
with
respect
to
income
earned
and
distributions
paid
during
its
fiscal
year.
The
Funds
hereby
report
the
following
amounts,
or
if
subsequently
determined
to
be
different,
the
maximum
allowable
amounts,
for
the
fiscal
year
ended
February
28,
2022:
Pursuant
to:
Franklin
Arizona
Tax-Free
Income
Fund
Franklin
Colorado
Tax-Free
Income
Fund
Franklin
Connecticut
Tax-
Free
Income
Fund
Exempt-Interest
Dividends
Distributed
§852(b)(5)(A)
$24,259,101
$16,631,004
$4,112,118
Pursuant
to:
Franklin
Michigan
Tax-Free
Income
Fund
Franklin
Minnesota
Tax-
Free
Income
Fund
Franklin
Ohio
Tax-
Free
Income
Fund
Exempt-Interest
Dividends
Distributed
§852(b)(5)(A)
$22,087,253
$21,256,716
$33,820,077
Pursuant
to:
Franklin
Oregon
Tax-Free
Income
Fund
Franklin
Pennsylvania
Tax-
Free
Income
Fund
Exempt-Interest
Dividends
Distributed
§852(b)(5)(A)
$26,818,763
$22,202,850
Franklin
Tax-Free
Trust
Board
Members
and
Officers
179
franklintempleton.com
Annual
Report
The
name,
year
of
birth
and
address
of
the
officers
and
board
members,
as
well
as
their
affiliations,
positions
held
with
the
Trust,
principal
occupations
during
at
least
the
past
five
years
and
number
of
U.S.
registered
portfolios
overseen
in
the
Franklin
Templeton/Legg
Mason
fund
complex,
are
shown
below.
Generally,
each
board
member
serves
until
that
person’s
successor
is
elected
and
qualified.
Independent
Board
Members
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Harris
J.
Ashton
(1932)
Trustee
Since
1984
120
Bar-S
Foods
(meat
packing
company)
(1981-2010).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Director,
RBC
Holdings,
Inc.
(bank
holding
company)
(until
2002);
and
President,
Chief
Executive
Officer
and
Chairman
of
the
Board,
General
Host
Corporation
(nursery
and
craft
centers)
(until
1998).
Terrence
J.
Checki
(1945)
Trustee
Since
2017
101
Hess
Corporation
(exploration
of
oil
and
gas)
(2014-present).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Member
of
the
Council
on
Foreign
Relations
(1996-present);
Member
of
the
National
Committee
on
U.S.-China
Relations
(1999-present);
member
of
the
Board
of
Trustees
of
the
Economic
Club
of
New
York
(2013-present);
member
of
the
Board
of
Trustees
of
the
Foreign
Policy
Association
(2005-present);
member
of
the
board
of
directors
of
Council
of
the
Americas
(2007-present)
and
the
Tallberg
Foundation
(2018-present);
and
formerly
,
Executive
Vice
President
of
the
Federal
Reserve
Bank
of
New
York
and
Head
of
its
Emerging
Markets
and
Internal
Affairs
Group
and
Member
of
Management
Committee
(1995-2014);
and
Visiting
Fellow
at
the
Council
on
Foreign
Relations
(2014).
Mary
C.
Choksi
(1950)
Trustee
Since
2014
121
Omnicom
Group
Inc.
(advertising
and
marketing
communications
services)
(2011-present)
and
White
Mountains
Insurance
Group,
Ltd.
(holding
company)
(2017-present);
and
formerly
,
Avis
Budget
Group
Inc.
(car
rental)
(2007-2020).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Founder
and
Senior
Advisor,
Strategic
Investment
Group
(investment
management
group)
(2015-2017);
Founding
Partner
and
Senior
Managing
Director,
Strategic
Investment
Group
(1987-2015);
Founding
Partner
and
Managing
Director,
Emerging
Markets
Management
LLC
(investment
management
firm)
(1987-2011);
and
Loan
Officer/Senior
Loan
Officer/Senior
Pension
Investment
Officer,
World
Bank
Group
(international
financial
institution)
(1977-1987).
Franklin
Tax-Free
Trust
180
franklintempleton.com
Annual
Report
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Edith
E.
Holiday
(1952)
Lead
Independent
Trustee
Trustee
since
1998
and
Lead
Independent
Trustee
since
2019
121
Hess
Corporation
(exploration
of
oil
and
gas)
(1993-present),
Santander
Consumer
USA
Holdings,
Inc.
(consumer
finance)
(2016-present);
Santander
Holdings
USA
(holding
company)
(2019-present);
and
formerly
,
Canadian
National
Railway
(railroad)
(2001-2021),
White
Mountains
Insurance
Group,
Ltd.
(holding
company)
(2004-
2021),
RTI
International
Metals,
Inc.
(manufacture
and
distribution
of
titanium)
(1999-2015)
and
H.J.
Heinz
Company
(processed
foods
and
allied
products)
(1994-2013).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
or
Trustee
of
various
companies
and
trusts;
and
formerly
,
Assistant
to
the
President
of
the
United
States
and
Secretary
of
the
Cabinet
(1990-1993);
General
Counsel
to
the
United
States
Treasury
Department
(1989-1990);
and
Counselor
to
the
Secretary
and
Assistant
Secretary
for
Public
Affairs
and
Public
Liaison-United
States
Treasury
Department
(1988-1989).
J.
Michael
Luttig
(1954)
Trustee
Since
2009
121
Boeing
Capital
Corporation
(aircraft
financing)
(2006-2010).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Counselor
and
Special
Advisor
to
the
CEO
and
Board
of
Directors
of
the
Coca-Cola
Company
(beverage
company)
(2021-present);
and
formerly
,
Counselor
and
Senior
Advisor
to
the
Chairman,
CEO,
and
Board
of
Directors,
of
The
Boeing
Company
(aerospace
company),
and
member
of
the
Executive
Council
(2019-2020);
Executive
Vice
President,
General
Counsel
and
member
of
the
Executive
Council,
The
Boeing
Company
(2006-2019);
and
Federal
Appeals
Court
Judge,
United
States
Court
of
Appeals
for
the
Fourth
Circuit
(1991-2006).
Larry
D.
Thompson
(1945)
Trustee
Since
2007
121
Graham
Holdings
Company
(education
and
media
organization)
(2011-2021);
The
Southern
Company
(energy
company)
(2014-2020;
previously
2010-
2012)
and
Cbeyond,
Inc.
(business
communications
provider)
(2010-
2012).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
Counsel,
Finch
McCranie,
LLP
(law
firm)
(2015-present);
John
A.
Sibley
Professor
of
Corporate
and
Business
Law,
University
of
Georgia
School
of
Law
(2015-present;
previously
2011-2012);
and
formerly
,
Independent
Compliance
Monitor
and
Auditor,
Volkswagen
AG
(manufacturer
of
automobiles
and
commercial
vehicles)
(2017-2020);
Executive
Vice
President
-
Government
Affairs,
General
Counsel
and
Corporate
Secretary,
PepsiCo,
Inc.
(consumer
products)
(2012-2014);
Senior
Vice
President
-
Government
Affairs,
General
Counsel
and
Secretary,
PepsiCo,
Inc.
(2004-2011);
Senior
Fellow
of
The
Brookings
Institution
(2003-2004);
Visiting
Professor,
University
of
Georgia
School
of
Law
(2004);
and
Deputy
Attorney
General,
U.S.
Department
of
Justice
(2001-2003).
Independent
Board
Members
(continued)
Franklin
Tax-Free
Trust
181
franklintempleton.com
Annual
Report
Interested
Board
Members
and
Officers
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Valerie
M.
Williams
(1956)
Trustee
Since
May
2021
101
Omnicom
Group,
Inc.
(advertising
and
marketing
communications
services)
(2016-present),
DTE
Energy
Co.
(gas
and
electric
utility)
(2018-present),
Devon
Energy
Corporation
(exploration
and
production
of
oil
and
gas)
(2021-present);
and
formerly
,
WPX
Energy,
Inc.
(exploration
and
production
of
oil
and
gas)
(2018-
2021).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Regional
Assurance
Managing
Partner,
Ernst
&
Young
LLP
(public
accounting)
(2005-2016),
various
roles
of
increasing
responsibility
at
Ernst
&
Young
(1981-2005).
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
**Gregory
E.
Johnson
(1961)
Trustee
Since
2007
132
None
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Executive
Chairman,
Chairman
of
the
Board
and
Director,
Franklin
Resources,
Inc.;
officer
and/or
director
or
trustee,
as
the
case
may
be,
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex;
Vice
Chairman,
Investment
Company
Institute;
and
formerly
,
Chief
Executive
Officer
(2013-2020)
and
President
(1994-2015)
Franklin
Resources,
Inc.
**Rupert
H.
Johnson,
Jr.
(1940)
Chairman
of
the
Board
and
Trustee
Since
2013
121
None
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
(Vice
Chairman),
Franklin
Resources,
Inc.;
Director,
Franklin
Advisers,
Inc.;
and
officer
and/or
director
or
trustee,
as
the
case
may
be,
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Ben
Barber
(1969)
Vice
President
Since
2020
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Vice
President,
Franklin
Advisers,
Inc.;
Director,
Municipal
Bonds;
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex;
and
formerly
,
Co-Head
of
Municipal
Bonds,
Goldman
Sachs
Asset
Management
(1999-2020).
Alison
E.
Baur
(1964)
Vice
President
Since
2012
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Deputy
General
Counsel,
Franklin
Templeton;
and
officer
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Independent
Board
Members
(continued)
Franklin
Tax-Free
Trust
182
franklintempleton.com
Annual
Report
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Breda
M.
Beckerle
(1958)
Chief
Compliance
Officer
Since
2020
Not
Applicable
Not
Applicable
280
Park
Avenue
New
York,
NY
10017
Principal
Occupation
During
at
Least
the
Past
5
Years:
Chief
Compliance
Officer,
Fiduciary
Investment
Management
International,
Inc.,
Franklin
Advisers,
Inc.,
Franklin
Mutual
Advisers,
LLC,
Franklin
Templeton
Institutional,
LLC;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Sonal
Desai,
Ph.D.
(1963)
President
and
Chief
Executive
Officer
–
Investment
Management
Since
2018
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
and
Executive
Vice
President,
Franklin
Advisers,
Inc.;
Executive
Vice
President,
Franklin
Templeton
Institutional,
LLC;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Steven
J.
Gray
(1955)
Vice
President
and
Co-Secretary
Vice
President
since
2009
and
Co-Secretary
since
2019
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Associate
General
Counsel,
Franklin
Templeton;
Vice
President,
FASA,
LLC;
Assistant
Secretary,
Franklin
Distributors,
LLC;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Matthew
T.
Hinkle
(1971)
Chief
Executive
Officer
–
Finance
and
Administration
Since
2017
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Vice
President,
Franklin
Templeton
Services,
LLC;
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex;
and
formerly
,
Vice
President,
Global
Tax
(2012-April
2017)
and
Treasurer/Assistant
Treasurer,
Franklin
Templeton
(2009-2017).
Susan
Kerr
(1949)
Vice
President
–
AML
Compliance
Since
July
2021
Not
Applicable
Not
Applicable
620
Eighth
Avenue
New
York,
NY
10018
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Compliance
Analyst,
Franklin
Templeton;
Chief
Anti-Money
Laundering
Compliance
Officer,
Legg
Mason
&
Co.,
or
its
affiliates;
Anti
Money
Laundering
Compliance
Officer;
Senior
Compliance
Officer,
LMIS;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Christopher
Kings
(1974)
Chief
Financial
Officer,
Chief
Accounting
Officer
and
Treasurer
Since
January
2022
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Treasurer,
U.S.
Fund
Administration
&
Reporting;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Navid
J.
Tofigh
(1972)
Vice
President
Since
2015
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Associate
General
Counsel,
Franklin
Templeton;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Interested
Board
Members
and
Officers
(continued)
Franklin
Tax-Free
Trust
183
franklintempleton.com
Annual
Report
*We
base
the
number
of
portfolios
on
each
separate
series
of
the
U.S.
registered
investment
companies
within
the
Franklin
Templeton/Legg
Mason
fund
complex.
These
portfolios
have
a
common
investment
manager
or
affiliated
investment
managers.
**Gregory
E.
Johnson
is
considered
to
be
an
interested
person
of
the
Fund
under
the
federal
securities
laws
due
to
his
position
as
an
officer
and
director
of
Franklin
Resources,
Inc.
(Resources),
which
is
the
parent
company
of
the
Fund’s
investment
manager
and
distributor.
Rupert
H.
Johnson,
Jr.
is
considered
to
be
an
interested
person
of
the
Fund
under
the
federal
securities
laws
due
to
his
position
as
an
officer
and
director
and
major
shareholder
of
Resources.
Note
1:
Rupert
H.
Johnson,
Jr.
is
the
uncle
of
Gregory
E.
Johnson.
Note
2:
Officer
information
is
current
as
of
the
date
of
this
report.
It
is
possible
that
after
this
date,
information
about
officers
may
change.
The
Sarbanes-Oxley
Act
of
2002
and
Rules
adopted
by
the
Securities
and
Exchange
Commission
require
the
Fund
to
disclose
whether
the
Fund’s
Audit
Committee
includes
at
least
one
member
who
is
an
audit
committee
financial
expert
within
the
meaning
of
such
Act
and
Rules.
The
Fund’s
Board
has
determined
that
there
is
at
least
one
such
financial
expert
on
the
Audit
Committee
and
has
designated
Mary
C.
Choksi
as
its
audit
committee
financial
expert.
The
Board
believes
that
Ms.
Choksi
qualifies
as
such
an
expert
in
view
of
her
extensive
business
background
and
experience.
She
served
as
a
director
of
Avis
Budget
Group,
Inc.
(2007
to
2020)
and
formerly,
Founder
and
Senior
Advisor,
Strategic
Investment
Group
(1987
to
2017).
Ms.
Choksi
has
been
a
Member
of
the
Fund’s
Audit
Committee
since
2014.
As
a
result
of
such
background
and
experience,
the
Board
believes
that
Ms.
Choksi
has
acquired
an
understanding
of
generally
accepted
accounting
principles
and
financial
statements,
the
general
application
of
such
principles
in
connection
with
the
accounting
estimates,
accruals
and
reserves,
and
analyzing
and
evaluating
financial
statements
that
present
a
breadth
and
level
of
complexity
of
accounting
issues
generally
comparable
to
those
of
the
Fund,
as
well
as
an
understanding
of
internal
controls
and
procedures
for
financial
reporting
and
an
understanding
of
audit
committee
functions.
Ms.
Choksi
is
an
independent
Board
member
as
that
term
is
defined
under
the
relevant
Securities
and
Exchange
Commission
Rules
and
Releases.
The
Statement
of
Additional
Information
(SAI)
includes
additional
information
about
the
board
members
and
is
available,
without
charge,
upon
request.
Shareholders
may
call
(800)
DIAL
BEN/342-5236
to
request
the
SAI.
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Craig
S.
Tyle
(1960)
Vice
President
Since
2005
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
General
Counsel
and
Executive
Vice
President,
Franklin
Resources,
Inc.;
and
officer
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Lori
A.
Weber
(1964)
Vice
President
and
Co-Secretary
Vice
President
since
2011
and
Co-Secretary
since
2019
Not
Applicable
Not
Applicable
300
S.E.
2nd
Street
Fort
Lauderdale,
FL
33301-
1923
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Associate
General
Counsel,
Franklin
Templeton;
Assistant
Secretary,
Franklin
Resources,
Inc.;
Vice
President
and
Secretary,
Templeton
Investment
Counsel,
LLC;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Interested
Board
Members
and
Officers
(continued)
Franklin
Tax-Free
Trust
Shareholder
Information
184
franklintempleton.com
Annual
Report
Board
Approval
of
Investment
Management
Agreements
FRANKLIN
TAX-FREE
TRUST
Franklin
Arizona
Tax-Free
Income
Fund
Franklin
Colorado
Tax-Free
Income
Fund
Franklin
Connecticut
Tax-Free
Income
Fund
Franklin
Michigan
Tax-Free
Income
Fund
Franklin
Minnesota
Tax-Free
Income
Fund
Franklin
Ohio
Tax-Free
Income
Fund
Franklin
Oregon
Tax-Free
Income
Fund
Franklin
Pennsylvania
Tax-Free
Income
Fund
(each
a
Fund)
At
an
in-person
meeting
held
on
February
28,
2022
(Meeting),
the
Board
of
Trustees
(Board)
of
Franklin
Tax-
Free
Trust
(Trust),
including
a
majority
of
the
trustees
who
are
not
“interested
persons”
as
defined
in
the
Investment
Company
Act
of
1940
(Independent
Trustees),
reviewed
and
approved
the
continuance
of
the
investment
management
agreement
between
Franklin
Advisers,
Inc.
(Manager)
and
the
Trust,
on
behalf
of
each
Fund
(each
a
Management
Agreement)
for
an
additional
one-year
period.
The
Independent
Trustees
received
advice
from
and
met
separately
with
Independent
Trustee
counsel
in
considering
whether
to
approve
the
continuation
of
each
Management
Agreement.
Although
the
Management
Agreements
for
the
Funds
were
considered
at
the
same
Board
meeting,
the
Board
considered
the
information
provided
to
it
about
the
Funds
together
and
with
respect
to
each
Fund
separately
as
the
Board
deemed
appropriate.
In
considering
the
continuation
of
each
Management
Agreement,
the
Board
reviewed
and
considered
information
provided
by
the
Manager
at
the
Meeting
and
throughout
the
year
at
meetings
of
the
Board
and
its
committees.
The
Board
also
reviewed
and
considered
information
provided
in
response
to
a
detailed
set
of
requests
for
information
submitted
to
the
Manager
by
Independent
Trustee
counsel
on
behalf
of
the
Independent
Trustees
in
connection
with
the
annual
contract
renewal
process.
In
addition,
prior
to
the
Meeting,
the
Independent
Trustees
held
a
virtual
contract
renewal
meeting
at
which
the
Independent
Trustees
first
conferred
amongst
themselves
and
Independent
Trustee
counsel
about
contract
renewal
matters;
and
then
met
with
management
to
request
additional
information
that
the
Independent
Trustees
reviewed
and
considered
at
the
Meeting.
The
Board
reviewed
and
considered
all
of
the
factors
it
deemed
relevant
in
approving
the
continuance
of
each
Management
Agreement,
including,
but
not
limited
to:
(i)
the
nature,
extent
and
quality
of
the
services
provided
by
the
Manager;
(ii)
the
investment
performance
of
each
Fund;
(iii)
the
costs
of
the
services
provided
and
profits
realized
by
the
Manager
and
its
affiliates
from
the
relationship
with
each
Fund;
(iv)
the
extent
to
which
economies
of
scale
are
realized
as
each
Fund
grows;
and
(v)
whether
fee
levels
reflect
these
economies
of
scale
for
the
benefit
of
Fund
investors.
In
approving
the
continuance
of
each
Management
Agreement,
the
Board,
including
a
majority
of
the
Independent
Trustees,
determined
that
the
terms
of
the
Management
Agreement
are
fair
and
reasonable
and
that
the
continuance
of
such
Management
Agreement
is
in
the
best
interests
of
the
applicable
Fund
and
its
shareholders.
While
attention
was
given
to
all
information
furnished,
the
following
discusses
some
primary
factors
relevant
to
the
Board’s
determination.
Nature,
Extent
and
Quality
of
Services
The
Board
reviewed
and
considered
information
regarding
the
nature,
extent
and
quality
of
investment
management
services
provided
by
the
Manager
and
its
affiliates
to
the
Funds
and
their
shareholders.
This
information
included,
among
other
things,
the
qualifications,
background
and
experience
of
the
senior
management
and
investment
personnel
of
the
Manager,
as
well
as
information
on
succession
planning
where
appropriate;
the
structure
of
investment
personnel
compensation;
oversight
of
third-
party
service
providers;
investment
performance
reports
and
related
financial
information
for
each
Fund;
reports
on
expenses
and
shareholder
services;
legal
and
compliance
matters;
risk
controls;
pricing
and
other
services
provided
by
the
Manager
and
its
affiliates;
and
management
fees
charged
by
the
Manager
and
its
affiliates
to
US
funds
and
other
accounts,
including
management’s
explanation
of
differences
among
accounts
where
relevant.
The
Board
also
reviewed
and
considered
an
annual
report
on
payments
made
by
Franklin
Templeton
(FT)
or
the
Funds
to
financial
intermediaries,
as
well
as
a
memorandum
relating
to
third-
party
servicing
arrangements,
which
included
discussion
of
the
changing
distribution
landscape
for
the
Funds.
The
Board
acknowledged
the
ongoing
integration
of
the
Legg
Mason
family
of
funds
into
the
FT
family
of
funds
and
developing
strategies
to
address
areas
of
heightened
concern
in
the
mutual
fund
industry,
including
various
regulatory
initiatives
and
recent
geopolitical
concerns.
Franklin
Tax-Free
Trust
Shareholder
Information
185
franklintempleton.com
Annual
Report
The
Board
also
reviewed
and
considered
the
benefits
provided
to
Fund
shareholders
of
investing
in
a
fund
that
is
part
of
the
FT
family
of
funds.
The
Board
noted
the
financial
position
of
Franklin
Resources,
Inc.
(FRI),
the
Manager’s
parent,
and
its
commitment
to
the
mutual
fund
business
as
evidenced
by
its
reassessment
of
the
fund
offerings
in
response
to
the
market
environment
and
project
initiatives
and
capital
investments
relating
to
the
services
provided
to
the
Funds
by
the
FT
organization.
The
Board
specifically
noted
FT’s
commitment
to
being
a
global
leader
in
stewardship
and
sustainability
and
the
recent
addition
of
a
senior
executive
focused
on
environmental,
social
and
governance
and
climate
control
initiatives.
Following
consideration
of
such
information,
the
Board
was
satisfied
with
the
nature,
extent
and
quality
of
services
provided
by
the
Manager
and
its
affiliates
to
the
Funds
and
their
shareholders.
Fund
Performance
The
Board
reviewed
and
considered
the
performance
results
of
each
Fund
over
various
time
periods
ended
November
30,
2021.
The
Board
considered
the
performance
returns
for
each
Fund
in
comparison
to
the
performance
returns
of
mutual
funds
deemed
comparable
to
the
Fund
included
in
a
universe
(Performance
Universe)
selected
by
Broadridge
Financial
Solutions,
Inc.
(Broadridge),
an
independent
provider
of
investment
company
data.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
a
Performance
Universe.
The
Board
also
reviewed
and
considered
Fund
performance
reports
provided
and
discussions
that
occurred
with
portfolio
managers
at
Board
meetings
throughout
the
year.
A
summary
of
each
Fund’s
performance
results
is
below.
Franklin
Arizona
Tax-Free
Income
Fund
and
Franklin
Colorado
Tax-Free
Income
Fund
-
The
Performance
Universe
for
each
Fund
included
the
Fund
and
all
retail
and
institutional
“other
states”
municipal
debt
funds.
The
Board
noted
that
the
Funds’
annualized
income
returns
and
annualized
total
returns
for
the
one-,
three-,
five-
and
10-year
periods
were
above
the
medians
of
their
respective
Performance
Universes.
The
Board
considered
the
income-
related
attributes
of
each
Fund
(such
as
fund
name,
investment
objective
and/or
investment
strategy)
and
that
the
evaluation
of
each
Fund’s
performance
relative
to
the
Fund’s
peers
on
an
income
return
basis
was
appropriate
given
its
income-related
attributes
and
investor
expectations.
The
Board
concluded
that
the
Funds’
performance
was
satisfactory.
Franklin
Michigan
Tax-Free
Income
Fund
and
Franklin
Oregon
Tax-Free
Income
Fund
-
The
Performance
Universe
for
each
Fund
included
the
Fund
and
all
retail
and
institutional
“other
states”
municipal
debt
funds.
The
Board
noted
that
the
Funds’
annualized
income
returns
for
the
one-,
three-,
five-
and
10-year
periods
were
above
the
medians
of
their
respective
Performance
Universes.
The
Board
also
noted
that
the
Funds’
annualized
total
returns
for
the
one-
and
10-year
periods
were
below
the
medians
of
their
respective
Performance
Universes,
but
for
the
three-
and
five-year
periods
were
above
the
medians
of
their
respective
Performance
Universes.
The
Board
considered
the
income-related
attributes
of
each
Fund
(such
as
fund
name,
investment
objective
and/or
investment
strategy)
and
that
the
evaluation
of
each
Fund’s
performance
relative
to
the
Fund’s
peers
on
an
income
return
basis
was
appropriate
given
its
income-related
attributes
and
investor
expectations.
The
Board
concluded
that
the
Funds’
performance
was
satisfactory.
Franklin
Ohio
Tax-Free
Income
Fund
-
The
Performance
Universe
for
the
Franklin
Ohio
Tax-Free
Income
Fund
included
the
Fund
and
all
retail
and
institutional
Ohio
municipal
debt
funds.
The
Board
noted
that
the
Fund’s
annualized
income
return
for
the
one-,
three-,
five-
and
10-year
periods
was
above
the
median
of
its
Performance
Universe.
The
Board
also
noted
that
the
Fund’s
annualized
total
return
for
the
one-
and
three-
year
periods
was
below
the
median
of
its
Performance
Universe,
for
the
five-
year
period
was
equal
to
the
median
of
its
Performance
Universe,
and
for
the
10-year
period
was
above
the
median
of
its
Performance
Universe.
The
Board
considered
the
income-related
attributes
of
the
Fund
(such
as
fund
name,
investment
objective
and/or
investment
strategy)
and
that
the
evaluation
of
the
Fund’s
performance
relative
to
its
peers
on
an
income
return
basis
was
appropriate
given
the
Fund’s
income-related
attributes
and
investor
expectations.
The
Board
concluded
that
the
Fund’s
performance
was
satisfactory.
Franklin
Connecticut
Tax-Free
Income
Fund
-
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
“other
states”
municipal
debt
funds.
The
Board
noted
that
the
Fund’s
annualized
income
return
for
the
one-,
three-,
five-
and
10-year
periods
was
above
the
median
of
its
Performance
Universe.
The
Board
also
noted
that
the
Fund’s
annualized
total
return
for
the
three-,
five-
and
10-year
periods
was
below
the
median
of
its
Performance
Universe,
but
for
the
one-year
period
was
above
the
median
of
its
Performance
Universe.
The
Board
considered
the
income-related
attributes
of
the
Fund
(such
as
fund
name,
investment
objective
and/or
investment
Franklin
Tax-Free
Trust
Shareholder
Information
186
franklintempleton.com
Annual
Report
strategy)
and
that
the
evaluation
of
the
Fund’s
performance
relative
to
its
peers
on
an
income
return
basis
was
appropriate
given
the
Fund’s
income-related
attributes
and
investor
expectations.
The
Board
concluded
that
the
Fund’s
performance
was
satisfactory.
Franklin
Minnesota
Tax-Free
Income
Fund
–
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
Minnesota
municipal
debt
funds.
The
Board
noted
that
the
Fund’s
annualized
income
return
for
the
three-,
five-
and
10-year
periods
was
above
the
median
of
its
Performance
Universe,
and
for
the
one-year
period
was
equal
to
the
median
of
its
Performance
Universe.
The
Board
also
noted
that
the
Fund’s
annualized
total
return
for
the
one-,
five-
and
ten-year
periods
was
below
the
median
of
its
Performance
Universe,
but
for
the
three-year
period
was
above
the
median
of
its
Performance
Universe.
The
Board
considered
the
income-related
attributes
of
the
Fund
(such
as
fund
name,
investment
objective
and/or
investment
strategy)
and
that
the
evaluation
of
the
Fund’s
performance
relative
to
its
peers
on
an
income
return
basis
was
appropriate
given
the
Fund’s
income-related
attributes
and
investor
expectations.
The
Board
concluded
that
the
Fund’s
performance
was
satisfactory.
Franklin
Pennsylvania
Tax-Free
Income
Fund
–
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
Pennsylvania
municipal
debt
funds.
The
Board
noted
that
the
Fund’s
annualized
income
return
for
the
three-,
five-
and
10-year
periods
was
above
the
median
of
its
Performance
Universe,
and
for
the
one-year
period
was
only
0.04%
below
the
median
of
its
Performance
Universe.
The
Board
also
noted
that
the
Fund’s
annualized
total
return
for
the
one-,
three-,
five-
and
10-year
periods
was
below
the
median
of
its
Performance
Universe.
The
Board
considered
the
income-related
attributes
of
the
Fund
(such
as
fund
name,
investment
objective
and/or
investment
strategy)
and
that
the
evaluation
of
the
Fund’s
performance
relative
to
its
peers
on
an
income
return
basis
was
appropriate
given
the
Fund’s
income-related
attributes
and
investor
expectations.
The
Board
concluded
that
the
Fund’s
performance
was
satisfactory.
Comparative
Fees
and
Expenses
The
Board
reviewed
and
considered
information
regarding
each
Fund’s
actual
total
expense
ratio
and
its
various
components,
including,
as
applicable,
management
fees;
transfer
agent
expenses;
underlying
fund
expenses;
Rule
12b-1
and
non-Rule
12b-1
service
fees;
and
other
non-
management
fees.
The
Board
also
noted
the
quarterly
and
annual
reports
it
receives
on
all
marketing
support
payments
made
by
FT
to
financial
intermediaries.
The
Board
considered
the
actual
total
expense
ratio
and,
separately,
the
contractual
management
fee
rate,
without
the
effect
of
fee
waivers,
if
any
(Management
Rate)
of
each
Fund
in
comparison
to
the
median
expense
ratio
and
median
Management
Rate,
respectively,
of
other
mutual
funds
deemed
comparable
to
and
with
a
similar
expense
structure
to
the
Fund
selected
by
Broadridge
(Expense
Group).
Broadridge
fee
and
expense
data
is
based
upon
information
taken
from
each
fund’s
most
recent
annual
or
semi-annual
report,
which
reflects
historical
asset
levels
that
may
be
quite
different
from
those
currently
existing,
particularly
in
a
period
of
market
volatility.
While
recognizing
such
inherent
limitation
and
the
fact
that
expense
ratios
and
Management
Rates
generally
increase
as
assets
decline
and
decrease
as
assets
grow,
the
Board
believed
the
independent
analysis
conducted
by
Broadridge
to
be
an
appropriate
measure
of
comparative
fees
and
expenses.
The
Broadridge
Management
Rate
includes
administrative
charges,
and
the
actual
total
expense
ratio,
for
comparative
consistency,
was
shown
for
Class
A1
shares
for
each
Fund
and
for
Class
A
shares
for
each
other
fund
in
the
applicable
Expense
Group.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
an
Expense
Group.
Franklin
Arizona
Tax-Free
Income
Fund,
Franklin
Colorado
Tax-Free
Income
Fund,
Franklin
Michigan
Tax-Free
Income
Fund,
Franklin
Oregon
Tax-Free
Income
Fund
and
Franklin
Pennsylvania
Tax-Free
Income
Fund
-
The
Expense
Group
for
each
Fund,
except
for
the
Franklin
Pennsylvania
Tax-
Free
Income
Fund
and
the
Franklin
Oregon
Tax-Free
Income
Fund,
included
the
Fund
and
nine
other
“other
states”
municipal
debt
funds.
The
Expense
Group
for
the
Franklin
Oregon
Tax-Free
Income
Fund
included
the
Fund
and
11
other
“other
states”
municipal
debt
funds.
The
Expense
Group
for
the
Franklin
Pennsylvania
Tax-Free
Income
Fund
included
the
Fund
and
11
other
Pennsylvania
municipal
debt
funds.
The
Board
noted
that
the
Management
Rates
and
actual
total
expense
ratios
for
the
Funds
were
below
the
medians
of
their
respective
Expense
Groups.
The
Board
concluded
that
the
Management
Rates
charged
to
the
Funds
are
reasonable.
Franklin
Connecticut
Tax-Free
Income
Fund
-
The
Expense
Group
for
the
Fund
included
the
Fund
and
nine
other
“other
states”
municipal
debt
funds.
The
Board
noted
that
the
Management
Rate
and
actual
total
expense
ratio
for
the
Fund
were
slightly
above
the
medians
of
its
Expense
Group.
The
Board
also
noted
that,
in
response
to
an
inquiry
from
the
Independent
Trustees,
management
proposed
to
cap
the
Franklin
Tax-Free
Trust
Shareholder
Information
187
franklintempleton.com
Annual
Report
Fund’s
total
expense
ratio
at
0.65%,
which
would
result
in
a
0.04%
reduction
in
the
Fund’s
total
net
expenses
effective
April
1,
2022.
The
Board
concluded
that
the
Management
Rate
charged
to
the
Fund
is
reasonable.
Franklin
Minnesota
Tax-Free
Income
Fund
-
The
Expense
Group
for
the
Fund
included
the
Fund
and
seven
other
Minnesota
municipal
debt
funds.
The
Board
noted
that
the
Management
Rate
for
the
Fund
was
equal
to
the
median
of
its
Expense
Group
and
the
actual
total
expense
ratio
for
the
Fund
was
below
the
median
of
its
Expense
Group.
The
Board
concluded
that
the
Management
Rate
charged
to
the
Fund
is
reasonable.
Franklin
Ohio
Tax-Free
Income
Fund
–
The
Expense
Group
for
the
Fund
included
the
Fund
and
six
other
Ohio
municipal
debt
funds.
The
Board
noted
that
the
Management
Rate
for
the
Fund
was
above
the
median
of
its
Expense
Group
and
the
actual
total
expense
ratio
for
the
Fund
was
below
the
median
of
its
Expense
Group.
The
Board
concluded
that
the
Management
Rate
charged
to
the
Fund
is
reasonable.
Profitability
The
Board
reviewed
and
considered
information
regarding
the
profits
realized
by
the
Manager
and
its
affiliates
in
connection
with
the
operation
of
each
Fund.
In
this
respect,
the
Board
considered
the
Fund
profitability
analysis
provided
by
the
Manager
that
addresses
the
overall
profitability
of
FT’s
US
fund
business,
as
well
as
its
profits
in
providing
investment
management
and
other
services
to
each
of
the
individual
funds
during
the
12-month
period
ended
September
30,
2021,
being
the
most
recent
fiscal
year-
end
for
FRI.
The
Board
noted
that
although
management
continually
makes
refinements
to
its
methodologies
used
in
calculating
profitability
in
response
to
organizational
and
product-related
changes,
the
overall
methodology
has
remained
consistent
with
that
used
in
the
Funds’
profitability
report
presentations
from
prior
years.
The
Board
also
noted
that
PricewaterhouseCoopers
LLP,
auditor
to
FRI
and
certain
FT
funds,
has
been
engaged
by
the
Manager
to
periodically
review
and
assess
the
allocation
methodologies
to
be
used
solely
by
the
Fund’s
Board
with
respect
to
the
profitability
analysis.
The
Board
noted
management’s
belief
that
costs
incurred
in
establishing
the
infrastructure
necessary
for
the
type
of
mutual
fund
operations
conducted
by
the
Manager
and
its
affiliates
may
not
be
fully
reflected
in
the
expenses
allocated
to
each
Fund
in
determining
its
profitability,
as
well
as
the
fact
that
the
level
of
profits,
to
a
certain
extent,
reflected
operational
cost
savings
and
efficiencies
initiated
by
management.
As
part
of
this
evaluation,
the
Board
considered
management’s
outsourcing
of
certain
operations,
which
effort
has
required
considerable
up
front
expenditures
by
the
Manager
but,
over
the
long
run
is
expected
to
result
in
greater
efficiencies.
The
Board
also
noted
management’s
expenditures
in
improving
shareholder
services
provided
to
the
Funds,
as
well
as
the
need
to
implement
systems
and
meet
additional
regulatory
and
compliance
requirements
resulting
from
recent
US
Securities
and
Exchange
Commission
and
other
regulatory
requirements.
The
Board
also
considered
the
extent
to
which
the
Manager
and
its
affiliates
might
derive
ancillary
benefits
from
fund
operations,
including
revenues
generated
from
transfer
agent
services,
potential
benefits
resulting
from
personnel
and
systems
enhancements
necessitated
by
fund
growth,
as
well
as
increased
leverage
with
service
providers
and
counterparties.
Based
upon
its
consideration
of
all
these
factors,
the
Board
concluded
that
the
level
of
profits
realized
by
the
Manager
and
its
affiliates
from
providing
services
to
each
Fund
was
not
excessive
in
view
of
the
nature,
extent
and
quality
of
services
provided
to
each
Fund.
Economies
of
Scale
The
Board
reviewed
and
considered
the
extent
to
which
the
Manager
may
realize
economies
of
scale,
if
any,
as
each
Fund
grows
larger
and
whether
each
Fund’s
management
fee
structure
reflects
any
economies
of
scale
for
the
benefit
of
shareholders.
With
respect
to
possible
economies
of
scale,
the
Board
noted
the
existence
of
management
fee
breakpoints,
which
operate
generally
to
share
any
economies
of
scale
with
a
Fund’s
shareholders
by
reducing
the
Fund’s
effective
management
fees
as
the
Fund
grows
in
size.
The
Board
considered
the
Manager’s
view
that
any
analyses
of
potential
economies
of
scale
in
managing
a
particular
fund
are
inherently
limited
in
light
of
the
joint
and
common
costs
and
investments
the
Manager
incurs
across
the
FT
family
of
funds
as
a
whole.
The
Board
noted
that
the
Franklin
Connecticut
Tax-Free
Income
Fund
does
not
have
an
asset
size
that
would
likely
enable
the
Fund
to
achieve
economies
of
scale.
The
Board
concluded
that
to
the
extent
economies
of
scale
may
be
realized
by
the
Manager
and
its
affiliates,
each
Fund’s
management
fee
structure
provided
a
sharing
of
benefits
with
the
Fund
and
its
shareholders
as
the
Fund
grows.
Conclusion
Based
on
its
review,
consideration
and
evaluation
of
all
factors
it
believed
relevant,
including
the
above-described
factors
and
conclusions,
the
Board
unanimously
approved
the
continuation
of
each
Management
Agreement
for
an
additional
one-year
period.
Franklin
Tax-Free
Trust
Shareholder
Information
188
franklintempleton.com
Annual
Report
Proxy
Voting
Policies
and
Procedures
The
Trust’s
investment
manager
has
established
Proxy
Voting
Policies
and
Procedures
(Policies)
that
the
Trust
uses
to
determine
how
to
vote
proxies
relating
to
portfolio
securities.
Shareholders
may
view
the
Trust’s
complete
Policies
online
at
franklintempleton.com.
Alternatively,
shareholders
may
request
copies
of
the
Policies
free
of
charge
by
calling
the
Proxy
Group
collect
at
(954)
527-
7678
or
by
sending
a
written
request
to:
Franklin
Templeton
Companies,
LLC,
300
S.E.
2nd
Street,
Fort
Lauderdale,
FL
33301,
Attention:
Proxy
Group.
Copies
of
the
Trust’s
proxy
voting
records
are
also
made
available
online
at
franklintempleton.com
and
posted
on
the
U.S.
Securities
and
Exchange
Commission’s
website
at
sec.gov
and
reflect
the
most
recent
12-month
period
ended
June
30.
Quarterly
Statement
of
Investments
The
Trust
files
a
complete
statement
of
investments
with
the
U.S.
Securities
and
Exchange
Commission
for
the
first
and
third
quarters
for
each
fiscal
year
as
an
exhibit
to
its
report
on
Form
N-PORT.
Shareholders
may
view
the
filed
Form
N-PORT
by
visiting
the
Commission’s
website
at
sec.
gov.
The
filed
form
may
also
be
viewed
and
copied
at
the
Commission’s
Public
Reference
Room
in
Washington,
DC.
Information
regarding
the
operations
of
the
Public
Reference
Room
may
be
obtained
by
calling
(800)
SEC-0330.
Householding
of
Reports
and
Prospectuses
You
will
receive,
or
receive
notice
of
the
availability
of,
each
Fund’s
financial
reports
every
six
months.
In
addition,
you
will
receive
as
an
annual
updated
summary
prospectus
(detail
prospectus
available
upon
request).
To
reduce
Fund
expenses,
we
try
to
identify
related
shareholders
in
a
household
and
send
only
one
copy
of
the
financial
reports
(to
the
extent
received
by
mail)
and
summary
prospectus.
This
process,
called
“householding,”
will
continue
indefinitely
unless
you
instruct
us
otherwise.
If
you
prefer
not
to
have
these
documents
householded,
please
call
us
at
(800)
632-2301.
At
any
time
you
may
view
current
prospectuses/
summary
prospectuses
and
financial
reports
on
our
website.
If
you
choose,
you
may
receive
these
documents
through
electronic
delivery.
TF3
A
04/22
©
2022
Franklin
Templeton
Investments.
All
rights
reserved.
Authorized
for
distribution
only
when
accompanied
or
preceded
by
a
summary
prospectus
and/or
prospectus.
Investors
should
carefully
consider
a
fund’s
investment
goals,
risks,
charges
and
expenses
before
investing.
A
prospectus
contains
this
and
other
information;
please
read
it
carefully
before
investing.
To
help
ensure
we
provide
you
with
quality
service,
all
calls
to
and
from
our
service
areas
are
monitored
and/or
recorded.
Annual
Report
and
Shareholder
Letter
Franklin
Tax-Free
Trust
Investment
Manager
Distributor
Shareholder
Services
Franklin
Advisers,
Inc.
Franklin
Distributors,
LLC
(800)
DIAL
BEN
®
/
342-5236
franklintempleton.com
(800)
632-2301
Item 2. Code of Ethics.
 
(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer. 
 
(c) N/A
 
(d) N/A
 
(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.
 
Item 3. Audit Committee Financial Expert.
 
(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.
 
(2) The audit committee financial expert is Mary C. Choksi, and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.
 
Item 4. Principal Accountant Fees and Services.
 
 
(a)      Audit Fees
The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or for services that are normally provided by the principal accountant in connection with statutory and regulatory filings or engagements were $706,992 for the fiscal year ended February 28, 2022 and $961,128 for the fiscal year ended February 28, 2021.
 
(b)      Audit-Related Fees
There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of Item 4.
 
There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant's investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant that are reasonably related to the performance of the audit of their financial statements.  
 
(c)      Tax Fees
There were no fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant for tax compliance, tax advice and tax planning.
 
There were no fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant for tax compliance, tax advice and tax planning.
 
(d)      All Other Fees
There were no fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant, other than the services reported in paragraphs (a)-(c) of Item 4 were $10,032 for the fiscal year ended February 28, 2022 and $0 for the fiscal year ended February 28, 2021. The services for which these fees were paid included review of materials provided to the fund Board in connection with the investment management contract renewal process.
 
The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant not reported in paragraphs (a)-(c) of Item 4 were $73,743 for the fiscal year ended February 28, 2022 and $36,800 for the fiscal year ended February 28, 2021. The services for which these fees were paid included professional fees in connection with determining the feasibility of a U.S. direct lending structure, for the issuance of an Auditor’s Certificate for South Korean regulatory shareholders disclosures, benchmarking services in connection with the ICI TA Survey, assets under management certification, professional fees in connection with SOC 1 Reports, and professional services relating to the readiness assessment over Greenhouse Gas Emissions and Energy.
 
(e) (1) The registrant’s audit committee is directly responsible for approving the services to be provided by the auditors, including:
 
        (i)     pre-approval of all audit and audit related services;
 
        (ii)    pre-approval of all non-audit related services to be provided to the Fund by the auditors;
 
        (iii)   pre-approval of all non-audit related services to be provided to the registrant by the auditors to the registrant’s investment adviser or to any entity that controls, is controlled by or is under common control with the registrant’s investment adviser and that provides ongoing services to the registrant where the non-audit services relate directly to the operations or financial reporting of the registrant; and
 
        (iv)    establishment by the audit committee, if deemed necessary or appropriate, as an alternative to committee pre-approval of services to be provided by the auditors, as required by paragraphs (ii) and (iii) above, of policies and procedures to permit such services to be pre-approved by other means, such as through establishment of guidelines or by action of a designated member or members of the committee; provided the policies and procedures are detailed as to the particular service and the committee is informed of each service and such policies and procedures do not include delegation of audit committee responsibilities, as contemplated under the Securities Exchange Act of 1934, to management; subject, in the case of (ii) through (iv), to any waivers, exceptions or exemptions that may be available under applicable law or rules.
 
(e) (2) None of the services provided to the registrant described in paragraphs (b)-(d) of Item 4 were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of regulation S-X.
 
(f) No disclosures are required by this Item 4(f).
 
(g) The aggregate non-audit fees paid to the principal accountant for services rendered by the principal accountant to the registrant and the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant were $83,775 for the fiscal year ended February 28, 2022 and $36,800 for the fiscal year ended February 28, 2021.
 
(h) The registrant’s audit committee of the board has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
 
 
Item 5. Audit Committee of Listed Registrants.        N/A
 
 
Item 6. Schedule of Investments.                      N/A
 
 
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.               N/A
 
 
Item 8. Portfolio Managers of Closed-End Management Investment Companies.                                               N/A
 
 
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and
Affiliated Purchasers.        N/A
 
 
Item 10. Submission of Matters to a Vote of Security Holders.
 
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.
 
 
Item 11. Controls and Procedures.
 
(a)   Evaluation
of Disclosure Controls and Procedures
.  The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, 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 Shareholder Report on Form N-CSR, 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 changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting.
 
 
Item 12. Disclosure of Securities Lending Activities for Closed-end Management Investment Company.                       N/A
 
 
Item 13. Exhibits.
 
(a)(1) Code of Ethics
 
 
(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer
 
 
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer
 
 
 
 
 
 
 
 
 
 
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\MATTHEW T. HINKLE______________________
      Matthew T. Hinkle
      Chief Executive Officer - Finance and Administration
Date  April 26, 2022
 
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\MATTHEW T. HINKLE______________________
Matthew T. Hinkle
      Chief Executive Officer - Finance and Administration
Date  April 26, 2022
 
 
 
By S\CHRISTOPHER KINGS______________________
     
Christopher Kings
      Chief Financial Officer, Chief Accounting Officer and Treasurer
Date  April 26, 2022