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)
 
Alison Baur, 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: 2/28/23
 
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.)
 
Include a copy of each notice transmitted to stockholders in reliance on Rule 30e-3 under the Act (17 CFR 270.30e-3) that contains disclosures specified by paragraph (c)(3) of that rule.
Not Applicable
.
 
Annual
Report
and
Shareholder
Letter
Franklin
Tax-Free
Trust
February
28,
2023
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
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,
2023,
the
U.S.
economy
showed
mixed
results
as
it
continued
to
recover
from
the
COVID-19
pandemic
amid
declining
unemployment,
rising
wages
and
higher
personal
consumption.
Although
U.S.
gross
domestic
product
contracted
in
2022’s
first
and
second
quarters
given
declines
in
inventory
and
business
investment,
it
grew
in
the
remainder
of
the
year
as
the
trade
deficit
narrowed
and
consumer
spending
continued
to
expand.
Inflation
rose
through
June
2022,
largely
due
to
pandemic-related
supply-chain
issues
and
higher
energy
prices
exacerbated
by
Russia’s
invasion
of
Ukraine.
However,
inflation
eased
later
in
the
period
due
to
intervention
by
the
U.S.
Federal
Reserve
(Fed)
and
falling
commodity
prices.
To
combat
high
inflation,
the
Fed
ended
monthly
asset
purchases
in
March
2022
and
raised
the
federal
funds
rate
at
every
meeting
during
the
12-month
reporting
period,
increasing
it
by
a
total
of
4.50%
(from
a
range
of
0.00%–
0.25%
to
4.50%–4.75%
by
period-end).
The
Fed
also
stated
its
intention
to
continue
reducing
its
U.S.
Treasury,
government
agency
debt
and
agency
mortgage-backed
securities
holdings,
and
it
anticipated
ongoing
federal
funds
rate
increases
would
be
appropriate
to
return
inflation
to
its
2%
goal.
During
the
12-month
period,
municipal
bonds,
as
measured
by
the
Bloomberg
Municipal
Bond
Index,
posted
a
-5.10%
total
return,
influenced
by
fixed
income
market
volatility
and
tighter
monetary
policy,
resulting
in
net
outflows
from
municipals,
though
demand
has
been
strong
so
far
in
2023.
1
Despite
mixed
signs
from
the
U.S.
economy,
municipal
bond
fundamentals
remained
strong
due
to
prudent
fiscal
management
and
many
issuers
reporting
budget
surpluses
for
2022
in
addition
to
federal
government
transfers.
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,
Gregory
E.
Johnson
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,
2023,
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
New
Jersey
Tax-Free
Income
Fund
26
Financial
Highlights
and
Schedules
of
Investments
32
Financial
Statements
150
Notes
to
Financial
Statements
159
Report
of
Independent
Registered
Public
Accounting
Firm
179
Tax
Information
180
Board
Members
and
Officers
181
Shareholder
Information
186
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,
2023,
the
U.S.
Federal
Reserve
(Fed)
continued
to
battle
surging
inflation,
which
started
to
come
down
from
its
peak
of
9.1%
year-
over-year
in
June
2022.
After
hiking
the
federal
funds
rate
by
75
basis
points
(bps)
at
each
of
its
meetings
from
May
through
November
2022,
the
Fed
decreased
the
size
of
its
increases
to
50
bps
in
December
and
25
bps
in
February
2023.
Despite
investor
optimism
late
in
2022
that
peak
hawkishness
had
been
reached,
a
surprisingly
resilient
labor
market
in
early
2023
dampened
confidence
that
inflation
would
quickly
return
to
the
Fed’s
2%
target.
The
municipal
bond
(muni)
market
witnessed
a
very
challenging
year
in
2022
as
the
Fed’s
monetary
policy
tightening
put
downward
pressure
on
this
long-duration
sector.
High
levels
of
volatility
resulted
in
significant
outflows
from
muni
retail
vehicles
until
the
end
of
2022.
The
first
two
months
of
2023
saw
a
reversal
of
this
trend,
with
strong
investor
demand
meeting
reduced
supply
and
leading
to
positive
absolute
returns
year-to-date.
Credit
fundamentals
remained
strong,
as
many
issuers
benefited
from
federal
aid
received
during
the
COVID-19
crisis
and
from
the
subsequent
economic
recovery.
For
the
12-month
period,
U.S.
fixed
income
sectors
saw
mixed
performance
relative
to
equities,
as
measured
by
the
Standard
&
Poor’s
®
500
Index,
which
posted
a
-7.72%
total
return
for
the
period.
1
Investment-grade
munis,
as
measured
by
the
Bloomberg
Municipal
Bond
Index,
posted
a
-5.10%
total
return,
while
U.S.
Treasuries,
as
measured
by
the
Bloomberg
U.S.
Treasury
Index,
posted
a
-10.08%
total
return,
and
investment-grade
corporate
bonds,
as
measured
by
the
Bloomberg
U.S.
Corporate
Investment
Grade
Index,
posted
a
-10.43%
total
return.
1
The
foregoing
information
reflects
our
analysis
and
opinions
as
of
February
28,
2023.
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
Franklin
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,
2023,
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,
2023.
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 $11.82
on
February
28,
2022,
to $11.02
on
February
28,
2023.
The
Fund’s
Class
A
shares
paid
dividends
totaling 24.2925
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
2.36%,
based
on
an
annualization
of the 2.2130
cents
per
share
February
dividend
and
the
maximum
offering
price
of
$11.27
on
February
28,
2023.
An
investor
in
the 2023 maximum
federal
income
tax
bracket
of
40.80%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of 3.99%
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
.
*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
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,
2023,
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
2/28/23
%
of
Total
Investments*
Utilities
17.48%
Health
Care
16.58%
Industrial
Dev.
Revenue
and
Pollution
Control
12.76%
Transportation
11.10%
Education
8.35%
Housing
8.33%
State
General
Obligation
7.60%
Local
6.46%
Special
Tax
5.24%
Lease
4.23%
Refunded
1.17%
Other
Revenue
Bonds
0.70%
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
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
37
.
Performance
Summary
as
of
February
28,
2023
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
2/28/23
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
-4.70%
-6.85%
5-Year
+3.25%
+0.18%
10-Year
+11.37%
+0.85%
Advisor
1-Year
-4.45%
-4.45%
5-Year
+4.38%
+0.86%
10-Year
+13.25%
+1.25%
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
2.36%
3.99%
2.80%
2.38%
4.73%
4.02%
Advisor
2.64%
4.46%
3.12%
2.68%
5.27%
4.53%
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
1
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
(2/28/13–2/28/23)
Advisor
Class
(2/28/13–2/28/23)
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.
Gross
expenses
are
the
Fund’s
total
annual
operating
expenses
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
Net
expenses
reflect
contractual
fee
waivers,
expense
caps
and/or
reimbursements,
which
cannot
be
terminated
prior
to
6/30/23
without
Board
consent.
Additional
amounts
may
be
voluntarily
waived
and/or
reimbursed
and
may
be
modified
or
discontinued
at
any
time
without
notice.
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
2/28/23.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
2023
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:
FactSet.
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
(3/1/22–2/28/23)
Share
Class
Net
Investment
Income
A
$0.242925
A1
$0.259592
C
$0.198225
R6
$0.276855
Advisor
$0.270669
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
9/1/22
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,008.10
$3.51
$1,021.30
$3.53
0.70%
A1
$1,000
$1,008.80
$2.76
$1,022.05
$2.78
0.55%
C
$1,000
$1,006.00
$5.49
$1,019.32
$5.52
1.10%
R6
$1,000
$1,009.60
$1.99
$1,022.81
$2.00
0.40%
Advisor
$1,000
$1,009.30
$2.26
$1,022.55
$2.27
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,
2023
.
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
$10.34
on
February
28,
2022,
to
$10.03
on
February
28,
2023.
The
Fund’s
Class
A
shares
paid
dividends
totaling
12.811
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
2.02%
based
on
an
annualization
of
the
1.7246
cents
per
share
February
dividend
and
the
maximum
offering
price
of
$10.26
on
February
28,
2023.
An
investor
in
the
2023
maximum
federal
income
tax
bracket
of
40.80%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
3.41%
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,
2023,
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
2/28/23
%
of
Total
Investments*
Industrial
Dev.
Revenue
and
Pollution
Control
26.60%
Housing
13.80%
Local
11.78%
Health
Care
9.28%
Lease
9.20%
Education
8.78%
Utilities
6.01%
Transportation
4.76%
State
General
Obligation
4.62%
Special
Tax
4.33%
Other
Revenue
Bonds
0.83%
Refunded
0.01%
*
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
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
62
.
Performance
Summary
as
of
February
28,
2023
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
2/28/23
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
-1.75%
-3.96%
5-Year
+3.39%
+0.21%
10-Year
+5.57%
+0.31%
Advisor
1-Year
-1.60%
-1.60%
5-Year
+4.63%
+0.91%
10-Year
+7.76%
+0.75%
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
2.02%
3.41%
2.87%
2.32%
4.85%
3.92%
Advisor
2.30%
3.89%
3.19%
2.63%
5.39%
4.44%
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
1
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
(2/28/13–2/28/23)
Advisor
Class
(2/28/13–2/28/23)
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.
Gross
expenses
are
the
Fund’s
total
annual
operating
expenses
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
Net
expenses
reflect
contractual
fee
waivers,
expense
caps
and/or
reimbursements,
which
cannot
be
terminated
prior
to
6/30/23
without
Board
consent.
Additional
amounts
may
be
voluntarily
waived
and/or
reimbursed
and
may
be
modified
or
discontinued
at
any
time
without
notice.
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
2/28/23.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
2023
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:
FactSet.
The
Bloomberg
Municipal
Short
1-5
Years
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
(3/1/22–2/28/23)
Share
Class
Net
Investment
Income
A
$0.128111
A1
$0.138117
R6
$0.156134
Advisor
$0.153234
Total
Annual
Operating
Expenses
9
Share
Class
With
Fee
Waiver
Without
Fee
Waiver
A
0.66%
0.81%
Advisor
0.41%
0.56%
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
9/1/22
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,005.90
$3.23
$1,021.58
$3.25
0.65%
A1
$1,000
$1,006.40
$2.73
$1,022.07
$2.75
0.55%
R6
$1,000
$1,007.30
$1.84
$1,022.96
$1.86
0.37%
Advisor
$1,000
$1,006.20
$1.98
$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,
2023
.
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
$10.05
on
February
28,
2022,
to
$8.68
on
February
28,
2023.
The
Fund’s
Class
A
shares
paid
dividends
totaling
35.3990
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
3.33%,
based
on
an
annualization
of
the
2.5003
cents
per
share
February
dividend
and
the
maximum
offering
price
of
$9.02
on
February
28,
2023.
An
investor
in
the
2023
maximum
federal
income
tax
bracket
of
40.80%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
5.63%
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.
*Does
not
include
cash
and
cash
equivalents.
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,
2023,
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
2/28/23
%
of
Total
Investments*
Special
Tax
24.38%
Industrial
Dev.
Revenue
and
Pollution
Control
14.04%
Housing
12.75%
Health
Care
10.93%
Transportation
9.66%
Utilities
6.70%
Local
6.24%
Education
5.10%
Refunded
4.91%
State
General
Obligation
2.55%
Other
Revenue
Bonds
1.17%
Lease
1.16%
Exchange
Traded
Fund
0.41%
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
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
80
.
Performance
Summary
as
of
February
28,
2023
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
2/28/23
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
-10.15%
-13.51%
5-Year
+6.24%
+0.45%
10-Year
+19.75%
+1.43%
Advisor
1-Year
-9.89%
-9.89%
5-Year
+7.37%
+1.43%
10-Year
+21.60%
+1.97%
Share
Class
Distribution
Rate
6
Taxable
Equivalent
Distribution
Rate
7
30-Day
Standardized
Yield
8
Taxable
Equivalent
30-Day
Standardized
Yield
7
A
3.33%
5.63%
4.15%
7.01%
Advisor
3.68%
6.22%
4.56%
7.70%
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
1
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
(2/28/13–2/28/23)
Advisor
Class
(2/28/13–2/28/23)
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
total
annual
operating
expenses
are
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
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
2/28/23.
7.
Taxable
equivalent
distribution
rate
and
yield
assume
the
2023
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:
FactSet.
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
(3/1/22–2/28/23)
Share
Class
Net
Investment
Income
A
$0.353990
A1
$0.367517
C
$0.316690
R6
$0.380332
Advisor
$0.376465
Total
Annual
Operating
Expenses
10
Share
Class
A
0.80%
Advisor
0.55%
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
9/1/22
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$979.70
$4.64
$1,020.11
$4.74
0.95%
A1
$1,000
$980.50
$3.86
$1,020.90
$3.93
0.79%
C
$1,000
$977.10
$6.48
$1,018.24
$6.61
1.32%
R6
$1,000
$980.10
$3.15
$1,021.62
$3.21
0.64%
Advisor
$1,000
$981.00
$3.36
$1,021.41
$3.43
0.68%
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,
2023
.
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 $11.48
on
February
28,
2022,
to $10.41
on
February
28,
2023.
The
Fund’s
Class
A
shares
paid
dividends
totaling 22.9458
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
2.11%,
based
on
an
annualization
of the
1.9056
cents
per
share
February
dividend
and
the
maximum
offering
price
of
$10.82
on
February
28,
2023.
An
investor
in
the 2023 maximum
combined
effective
federal
and
Massachusetts
personal
income
tax
bracket
of
45.80%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of 3.89%
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
.
*Does
not
include
cash
and
cash
equivalents.
Commonwealth
Update
During
the
12-month
period,
Massachusetts’
economy
slowed,
although
growth
rebounded
in
the
third
quarter
of
2022.
Massachusetts
benefits
from
a
diverse,
well-educated
economic
base
and
has
a
history
of
resilience
through
economic
cycles.
Massachusetts’
unemployment
rate
began
the
period
at
3.9%
and
ended
at
3.7%,
compared
with
the
3.6%
national
rate.
Following
a
historic
surplus
from
the
fiscal
year
(FY)
2022
budget,
the
governor
signed
a
budget
for
FY
2023,
which
included
significant
new
education
spending
and
allocated
funds
for
a
permanent
tax
reduction.
Massachusetts’
net
tax-supported
debt
was
$6,825
per
capita
and
8.3%
of
personal
income,
well
above
the
$1,179
and
2.1%
national
medians,
respectively.
3
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
large
economy
focused
on
important
knowledge
sectors,
strong
financial
management,
adequate
reserves
and
a
highly
educated
workforce.
According
to
Moody’s,
credit
challenges
facing
Massachusetts
included
combined
debt
and
pension
liabilities
that
are
the
seventh
highest
in
the
nation
relative
to
gross
domestic
product
and
above
average
exposure
to
climate
risks.
Moody’s
stable
Portfolio
Composition
2/28/23
%
of
Total
Investments*
Education
29.54%
Health
Care
17.01%
Transportation
11.11%
Local
8.92%
Housing
8.74%
Special
Tax
7.97%
Utilities
4.80%
State
General
Obligation
4.38%
Refunded
4.05%
Other
Revenue
Bonds
2.40%
Lease
0.93%
Industrial
Dev.
Revenue
and
Pollution
Control
0.15%
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,
States
–
U.S.:
Debt,
pension
and
OPEB
liabilities
all
up
in
fiscal
2021,
9/7/22
.
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
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
134
.
Franklin
Massachusetts
Tax-Free
Income
Fund
21
franklintempleton.com
Annual
Report
outlook
reflected
its
assessment
that
the
commonwealth
will
continue
its
trend
of
strong
financial
management.
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,
2023,
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,
2023
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
2/28/23
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
-7.32%
-10.80%
5-Year
+2.31%
-0.31%
10-Year
+14.01%
+0.93%
Advisor
1-Year
-7.01%
-7.01%
5-Year
+3.43%
+0.68%
10-Year
+15.96%
+1.49%
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
2.11%
3.89%
2.66%
2.65%
4.91%
4.89%
Advisor
2.43%
4.48%
3.02%
3.01%
5.57%
5.55%
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
1
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
(2/28/13–2/28/23)
Advisor
Class
(2/28/13–2/28/23)
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.
Al
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.
Gross
expenses
are
the
Fund’s
total
annual
operating
expenses
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Net
expenses
are
capped
under
a
contrac-
tual
agreement,
which
cannot
be
terminated
prior
to
6/30/23
without
Board
consent.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns
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)
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
2/28/23.
7.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
12/20/22
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.
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:
FactSet.
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
(3/1/22–2/28/23)
Share
Class
Net
Investment
Income
A
$0.229458
A1
$0.245263
C
$0.186430
R6
$0.260466
Advisor
$0.255804
Total
Annual
Operating
Expenses
10
Share
Class
A
0.88%
Advisor
0.63%
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
9/1/22
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,001.80
$4.44
$1,020.35
$4.49
0.90%
A1
$1,000
$1,002.60
$3.70
$1,021.10
$3.73
0.74%
C
$1,000
$998.90
$6.38
$1,018.41
$6.44
1.29%
R6
$1,000
$1,004.20
$3.06
$1,021.74
$3.09
0.62%
Advisor
$1,000
$1,003.10
$3.21
$1,021.59
$3.24
0.65%
26
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,
2023
.
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
$11.18
on
February
28,
2022,
to
$10.11
on
February
28,
2023.
The
Fund’s
Class
A
shares
paid
dividends
totaling
27.3011
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
2.56%,
based
on
an
annualization
of
the
2.2434
cents
per
share
February
dividend
and
the
maximum
offering
price
of
$10.50
on
February
28,
2023.
An
investor
in
the
2023
maximum
combined
effective
federal
and
New
Jersey
personal
income
tax
bracket
of
51.55%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
5.28%
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
economy
slowed,
although
growth
rebounded
in
the
third
quarter
of
2022,
consistent
with
a
national
recovery.
New
Jersey’s
economy
benefits
from
a
comparatively
wealthy
tax
base
and
its
strategic
location
close
to
major
East
Coast
commercial
centers.
The
state’s
unemployment
rate
began
the
period
at
4.6%
and
ended
at
3.5%,
compared
with
the
3.6%
national
rate.
New
Jersey’s
governor
signed
a
fiscal
year
(FY)
2023
budget
that
provided
significant
property
tax
relief
and
a
full
payment
to
the
state’s
public
worker
pension
fund,
while
also
increasing
spending
on
education.
New
Jersey’s
net
tax-
supported
debt
was
$5,410
per
capita
and
7.2%
of
personal
income,
well
above
the
$1,179
and
2.1%
national
medians,
respectively.
3
Independent
credit
rating
agency
Moody’s
Investors
Service
upgraded
New
Jersey’s
general
obligation
bonds
to
an
A2
rating
and
subsequently
upgraded
its
outlook
from
stable
to
positive.
4
Moody’s
upgrade
reflects
its
view
of
New
Jersey’s
improved
financial
position
and
commitment
to
making
actuarially
determined
pension
contributions
and
to
controlling
pension
liability
growth.
According
to
Moody’s,
challenges
included
its
large
long-term
liabilities
and
significant
recent
growth
in
outlays.
Moody’s
positive
outlook
reflected
its
assessment
that
New
Jersey
will
continue
its
Portfolio
Composition
2/28/23
%
of
Total
Investments*
Transportation
26.19%
Education
21.20%
Health
Care
15.51%
Lease
9.65%
Housing
8.99%
Local
5.92%
Industrial
Dev.
Revenue
and
Pollution
Control
4.24%
Refunded
2.68%
Special
Tax
2.33%
Utilities
2.20%
State
General
Obligation
1.10%
*
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,
States
–
U.S.:
Debt,
pension
and
OPEB
liabilities
all
up
in
fiscal
2021
,
9/7/22.
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
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
144
.
Franklin
New
Jersey
Tax-Free
Income
Fund
27
franklintempleton.com
Annual
Report
current
practices
for
managing
reserves
and
long-term
liabilities.
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,
2023,
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,
2023
Franklin
New
Jersey
Tax-Free
Income
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
2/28/23
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
-7.13%
-10.61%
5-Year
+4.32%
+0.08%
10-Year
+11.18%
+0.68%
Advisor
1-Year
-6.81%
-6.81%
5-Year
+5.46%
+1.07%
10-Year
+12.99%
+1.23%
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
2.56%
5.28%
2.97%
2.96%
6.13%
6.11%
Advisor
2.87%
5.92%
3.34%
3.33%
6.89%
6.87%
See
page
30
for
Performance
Summary
footnotes.
Franklin
New
Jersey
Tax-Free
Income
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
1
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
(2/28/13–2/28/23)
Advisor
Class
(2/28/13–2/28/23)
Franklin
New
Jersey
Tax-Free
Income
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.
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.
Gross
expenses
are
the
Fund’s
total
annual
operating
expenses
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Net
expenses
are
capped
under
a
contrac-
tual
agreement,
which
cannot
be
terminated
prior
to
6/30/23
without
Board
consent.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
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
2/28/23.
7.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
12/20/22
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.
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:
FactSet.
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
(3/1/22–2/28/23)
Share
Class
Net
Investment
Income
A
$0.273011
A1
$0.288523
C
$0.230958
R6
$0.303085
Advisor
$0.298640
Total
Annual
Operating
Expenses
10
Share
Class
A
0.82%
Advisor
0.57%
Your
Fund’s
Expenses
Franklin
New
Jersey
Tax-Free
Income
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.
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
9/1/22
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,002.90
$4.18
$1,020.62
$4.21
0.84%
A1
$1,000
$1,003.70
$3.43
$1,021.37
$3.46
0.69%
C
$1,000
$1,000.90
$6.12
$1,018.68
$6.17
1.23%
R6
$1,000
$1,004.40
$2.76
$1,022.04
$2.78
0.56%
Advisor
$1,000
$1,005.10
$2.98
$1,021.83
$3.00
0.60%
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
franklintempleton.com
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Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
32
a
Year
Ended
February
28,
Year
Ended
February
28,
2019
b
2023
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.82
$12.22
$12.39
$11.98
$11.87
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.26
0.23
0.26
0.27
0.15
Net
realized
and
unrealized
gains
(losses)
...........
(0.82)
(0.40)
(0.17)
0.43
0.11
Total
from
investment
operations
....................
(0.56)
(0.17)
0.09
0.70
0.26
Less
distributions
from:
Net
investment
income
..........................
(0.24)
(0.23)
(0.26)
(0.29)
(0.15)
Net
asset
value,
end
of
year
.......................
$11.02
$11.82
$12.22
$12.39
$11.98
Total
return
e
...................................
(4.70)%
(1.42)%
0.72%
5.92%
2.20%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
......
0.83%
0.80%
0.80%
0.81%
0.80%
Expenses
net
of
waiver
and
payments
by
affiliates
g
......
0.71%
0.70%
0.70%
0.71%
0.71%
Net
investment
income
...........................
2.31%
1.89%
2.09%
2.28%
2.56%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$707,816
$754,463
$629,566
$407,125
$182,330
Portfolio
turnover
rate
............................
24.76%
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.
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
33
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.81
$12.21
$12.38
$11.96
$11.94
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.27
0.25
0.28
0.30
0.32
Net
realized
and
unrealized
gains
(losses)
...........
(0.81)
(0.40)
(0.17)
0.43
0.02
Total
from
investment
operations
....................
(0.54)
(0.15)
0.11
0.73
0.34
Less
distributions
from:
Net
investment
income
..........................
(0.26)
(0.25)
(0.28)
(0.31)
(0.32)
Net
asset
value,
end
of
year
.......................
$11.01
$11.81
$12.21
$12.38
$11.96
Total
return
d
...................................
(4.56)%
(1.27)%
0.87%
6.17%
2.91%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.68%
0.65%
0.65%
0.66%
0.65%
Expenses
net
of
waiver
and
payments
by
affiliates
e
......
0.56%
0.55%
0.55%
0.56%
0.56%
Net
investment
income
...........................
2.45%
2.05%
2.26%
2.43%
2.71%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$864,508
$1,265,052
$1,403,417
$1,516,009
$1,575,494
Portfolio
turnover
rate
............................
24.76%
22.05%
18.84%
14.78%
2.57%
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.
34
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.85
$12.24
$12.42
$12.00
$11.98
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.21
0.18
0.21
0.23
0.26
Net
realized
and
unrealized
gains
(losses)
...........
(0.81)
(0.39)
(0.18)
0.43
0.02
Total
from
investment
operations
....................
(0.60)
(0.21)
0.03
0.66
0.28
Less
distributions
from:
Net
investment
income
..........................
(0.20)
(0.18)
(0.21)
(0.24)
(0.26)
Net
asset
value,
end
of
year
.......................
$11.05
$11.85
$12.24
$12.42
$12.00
Total
return
d
...................................
(5.07)%
(1.73)%
0.24%
5.58%
2.34%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
1.23%
1.20%
1.20%
1.21%
1.20%
Expenses
net
of
waiver
and
payments
by
affiliates
e
......
1.11%
1.10%
1.10%
1.11%
1.11%
Net
investment
income
...........................
1.88%
1.50%
1.72%
1.88%
2.16%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$42,983
$67,008
$121,312
$203,994
$262,612
Portfolio
turnover
rate
............................
24.76%
22.05%
18.84%
14.78%
2.57%
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
35
In
a
Year
Ended
February
28,
2023
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
$12.24
$12.41
$11.99
$11.97
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.29
0.27
0.30
0.32
0.34
Net
realized
and
unrealized
gains
(losses)
...........
(0.81)
(0.40)
(0.18)
0.43
0.02
Total
from
investment
operations
....................
(0.52)
(0.13)
0.12
0.75
0.36
Less
distributions
from:
Net
investment
income
..........................
(0.28)
(0.27)
(0.29)
(0.33)
(0.34)
Net
asset
value,
end
of
year
.......................
$11.04
$11.84
$12.24
$12.41
$11.99
Total
return
....................................
(4.40)%
(1.12)%
1.03%
6.33%
3.06%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.53%
0.50%
0.50%
0.50%
0.49%
Expenses
net
of
waiver
and
payments
by
affiliates
d
......
0.40%
0.40%
0.40%
0.40%
0.39%
Net
investment
income
...........................
2.60%
2.19%
2.41%
2.59%
2.88%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$135,524
$257,641
$414,751
$410,541
$417,612
Portfolio
turnover
rate
............................
24.76%
22.05%
18.84%
14.78%
2.57%
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
Federal
Intermediate-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
36
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.84
$12.24
$12.41
$11.99
$11.97
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.28
0.26
0.29
0.31
0.33
Net
realized
and
unrealized
gains
(losses)
...........
(0.81)
(0.40)
(0.17)
0.43
0.02
Total
from
investment
operations
....................
(0.53)
(0.14)
0.12
0.74
0.35
Less
distributions
from:
Net
investment
income
..........................
(0.27)
(0.26)
(0.29)
(0.32)
(0.33)
Net
asset
value,
end
of
year
.......................
$11.04
$11.84
$12.24
$12.41
$11.99
Total
return
....................................
(4.45)%
(1.17)%
0.97%
6.27%
3.00%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.58%
0.55%
0.55%
0.56%
0.55%
Expenses
net
of
waiver
and
payments
by
affiliates
.......
0.46%
0.45%
d
0.45%
d
0.46%
d
0.46%
d
Net
investment
income
...........................
2.53%
2.14%
2.36%
2.53%
2.81%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$633,982
$1,126,152
$1,153,049
$1,277,185
$1,103,570
Portfolio
turnover
rate
............................
24.76%
22.05%
18.84%
14.78%
2.57%
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
Schedule
of
Investments,
February
28,
2023
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
37
a
a
Shares
a
Value
a
Management
Investment
Companies
2.1%
Capital
Markets
2.1%
a
Franklin
Municipal
Green
Bond
ETF
.....................................
2,115,000
$
49,469,850
Total
Management
Investment
Companies
(Cost
$57,603,313)
....................
49,469,850
Principal
Amount
a
a
a
a
Municipal
Bonds
95.9%
Alabama
3.2%
b
Black
Belt
Energy
Gas
District
,
Revenue,
2022
A,
Mandatory
Put,
4%,
12/01/29
...........................
$
7,000,000
6,808,197
Revenue,
2022
C-1,
Mandatory
Put,
5.25%,
6/01/29
........................
8,570,000
9,048,483
Revenue,
2022
E,
Mandatory
Put,
5%,
6/01/28
............................
7,000,000
7,348,627
Revenue,
2022
F,
Mandatory
Put,
5.5%,
12/01/28
.........................
6,970,000
7,363,482
Chatom
Industrial
Development
Board
,
PowerSouth
Energy
Cooperative,
Revenue,
2020,
Refunding,
AGMC
Insured,
5%,
8/01/28
........................................................
500,000
536,202
PowerSouth
Energy
Cooperative,
Revenue,
2020,
Refunding,
AGMC
Insured,
5%,
8/01/29
........................................................
485,000
525,505
PowerSouth
Energy
Cooperative,
Revenue,
2020,
Refunding,
AGMC
Insured,
5%,
8/01/30
........................................................
425,000
465,691
Health
Care
Authority
of
the
City
of
Huntsville
(The)
,
Health
Care
Authority
of
City
of
Huntsville
(The)
Obligated
Group
,
Revenue
,
2020
B
,
4
%
,
6/01/39
..............
2,250,000
2,138,477
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
5,089,855
Infirmary
Health
System
Obligated
Group,
Revenue,
2016
A,
5%,
2/01/28
.......
5,000,000
5,182,766
Madison
City
Board
of
Education
,
Special
Tax,
2019,
4%,
2/01/33
.......................................
2,855,000
2,986,292
Special
Tax,
2019,
4%,
2/01/34
.......................................
2,970,000
3,087,785
Special
Tax,
2019,
4%,
2/01/35
.......................................
3,095,000
3,179,621
Special
Tax,
2019,
4%,
2/01/37
.......................................
3,350,000
3,374,208
b
Southeast
Energy
Authority
A
Cooperative
District
,
Revenue,
2022
A-1,
Mandatory
Put,
5.5%,
12/01/29
........................
4,585,000
4,916,633
Revenue,
2022
B-2,
Mandatory
Put,
4.839%,
8/01/28
.......................
15,000,000
14,990,409
77,042,233
Alaska
0.1%
Alaska
Municipal
Bond
Bank
Authority
,
Revenue,
2020,
Refunding,
4%,
12/01/35
................................
1,710,000
1,746,098
Revenue,
2020,
Refunding,
4%,
12/01/37
................................
1,305,000
1,311,625
3,057,723
Arizona
4.2%
Arizona
Department
of
Transportation
,
State
Highway
Fund
,
Revenue
,
2015
,
Refunding
,
5
%
,
7/01/29
.............................................
10,920,000
11,173,827
Arizona
Industrial
Development
Authority
,
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2019
A,
5%,
11/01/29
.......................................................
1,100,000
1,174,220
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2019
A,
5%,
11/01/30
.......................................................
600,000
640,464
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2019
A,
5%,
11/01/31
.......................................................
630,000
672,801
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2019
A,
5%,
11/01/32
.......................................................
1,000,000
1,064,421
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2019
A,
5%,
11/01/35
.......................................................
1,115,000
1,166,969
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2019
A,
5%,
11/01/36
.......................................................
1,250,000
1,300,769
Franklin
Tax-Free
Trust
Schedule
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.
38
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Arizona
(continued)
Arizona
Industrial
Development
Authority,
(continued)
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2019
A,
5%,
11/01/37
.......................................................
$
1,050,000
$
1,088,650
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2020
A,
4%,
11/01/37
.......................................................
1,105,000
1,050,607
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2020
A,
4%,
11/01/38
.......................................................
600,000
567,762
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2022
A,
4%,
11/01/41
.......................................................
6,000,000
5,497,497
KIPP
New
York,
Inc.
Jerome
Facility,
Revenue,
2021
B,
5%,
7/01/27
............
160,000
166,563
KIPP
New
York,
Inc.
Jerome
Facility,
Revenue,
2021
B,
5%,
7/01/28
............
170,000
177,374
KIPP
New
York,
Inc.
Jerome
Facility,
Revenue,
2021
B,
5%,
7/01/29
............
160,000
166,942
KIPP
New
York,
Inc.
Jerome
Facility,
Revenue,
2021
B,
5%,
7/01/30
............
185,000
192,748
KIPP
New
York,
Inc.
Jerome
Facility,
Revenue,
2021
B,
5%,
7/01/31
............
195,000
202,842
KIPP
New
York,
Inc.
Macombs
Facility,
Revenue,
2021
A,
5%,
7/01/27
..........
55,000
57,546
KIPP
New
York,
Inc.
Macombs
Facility,
Revenue,
2021
A,
5%,
7/01/28
..........
60,000
63,428
KIPP
New
York,
Inc.
Macombs
Facility,
Revenue,
2021
A,
5%,
7/01/29
..........
60,000
64,000
KIPP
New
York,
Inc.
Macombs
Facility,
Revenue,
2021
A,
5%,
7/01/30
..........
65,000
69,725
KIPP
New
York,
Inc.
Macombs
Facility,
Revenue,
2021
A,
5%,
7/01/31
..........
70,000
75,409
Phoenix
Children's
Hospital
Obligated
Group,
Revenue,
2020
A,
5%,
2/01/35
.....
500,000
556,737
Phoenix
Children's
Hospital
Obligated
Group,
Revenue,
2020
A,
5%,
2/01/36
.....
750,000
825,469
Phoenix
Children's
Hospital
Obligated
Group,
Revenue,
2020
A,
5%,
2/01/37
.....
600,000
654,781
Phoenix
Children's
Hospital
Obligated
Group,
Revenue,
2020
A,
5%,
2/01/38
.....
1,000,000
1,080,499
Phoenix
Children's
Hospital
Obligated
Group,
Revenue,
2020
A,
3%,
2/01/39
.....
1,200,000
999,948
City
of
Mesa
,
Utility
System
,
Revenue
,
2016
,
Refunding
,
5
%
,
7/01/29
............
2,500,000
2,658,482
City
of
Phoenix
Civic
Improvement
Corp.
,
Airport,
Revenue,
Junior
Lien,
2017
D,
Refunding,
5%,
7/01/30
...............
10,000,000
10,818,183
Airport,
Revenue,
Junior
Lien,
2019
B,
5%,
7/01/35
........................
7,500,000
7,950,092
Airport,
Revenue,
Junior
Lien,
2019
B,
5%,
7/01/36
........................
6,225,000
6,551,171
Phoenix
Sky
Harbor
International
Airport
Customer
Facility
Charges,
Revenue,
2019
A,
5%,
7/01/35
..................................................
3,340,000
3,596,688
Phoenix
Sky
Harbor
International
Airport
Customer
Facility
Charges,
Revenue,
2019
A,
5%,
7/01/36
..................................................
6,380,000
6,820,827
Phoenix
Sky
Harbor
International
Airport
Customer
Facility
Charges,
Revenue,
2019
A,
5%,
7/01/39
..................................................
6,365,000
6,734,407
Glendale
Industrial
Development
Authority
,
Midwestern
University
Foundation,
Revenue,
2020,
Refunding,
5%,
5/15/30
......
525,000
593,546
Midwestern
University
Foundation,
Revenue,
2020,
Refunding,
5%,
5/15/31
......
425,000
478,460
Midwestern
University
Foundation,
Revenue,
2020,
Refunding,
5%,
5/15/32
......
525,000
589,666
c
Industrial
Development
Authority
of
the
County
of
Pima
(The)
,
La
Posada
at
Park
Centre,
Inc.
Obligated
Group
,
Revenue
,
144A,
2022
B-3
,
5.125
%
,
11/15/29
......
3,000,000
2,985,489
Maricopa
County
Industrial
Development
Authority
,
HonorHealth
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
9/01/30
.......
850,000
926,097
HonorHealth
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
9/01/31
.......
1,000,000
1,086,039
HonorHealth
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
9/01/32
.......
1,000,000
1,084,089
HonorHealth
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
9/01/33
.......
800,000
864,399
Pima
County
Regional
Transportation
Authority
,
Excise
Tax,
Revenue,
2014,
5%,
6/01/24
................................
3,385,000
3,400,736
Excise
Tax,
Revenue,
2014,
5%,
6/01/26
................................
7,180,000
7,209,702
Scottsdale
Municipal
Property
Corp.
,
City
of
Scottsdale
Excise
Tax,
Revenue,
2015,
Refunding,
5%,
7/01/26
..........
2,580,000
2,691,065
City
of
Scottsdale
Excise
Tax,
Revenue,
2015,
Pre-Refunded,
5%,
7/01/28
.......
3,325,000
3,473,480
101,264,616
Franklin
Tax-Free
Trust
Schedule
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
39
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
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
$
4,825,501
Baptist
Memorial
Health
Care
Obligated
Group,
Revenue,
2020
B-1,
Refunding,
5%,
9/01/36
........................................................
3,625,000
3,737,133
Baptist
Memorial
Health
Care
Obligated
Group,
Revenue,
2020
B-1,
Refunding,
5%,
9/01/37
........................................................
1,250,000
1,275,824
Baptist
Memorial
Health
Care
Obligated
Group,
Revenue,
2020
B-1,
Refunding,
5%,
9/01/38
........................................................
1,000,000
1,017,469
Baptist
Memorial
Health
Care
Obligated
Group,
Revenue,
2020
B-1,
Refunding,
5%,
9/01/39
........................................................
1,000,000
1,011,605
11,867,532
California
5.0%
Bay
Area
Toll
Authority
,
Revenue,
2017
S-7,
Refunding,
4%,
4/01/31
.............................
7,000,000
7,321,124
Revenue,
2017
S-7,
Refunding,
4%,
4/01/33
.............................
5,000,000
5,205,355
b
California
Community
Choice
Financing
Authority
,
Revenue,
2021
A,
Mandatory
Put,
4%,
12/01/27
...........................
2,000,000
1,991,861
Revenue,
2023
C,
Mandatory
Put,
5.25%,
10/01/31
........................
11,000,000
11,453,662
c
California
Community
Housing
Agency
,
Aster
Apartments
,
Revenue,
Junior
Lien
,
144A,
2021
A-2
,
4
%
,
2/01/43
..............................................
6,800,000
5,661,495
b
California
Infrastructure
&
Economic
Development
Bank
,
California
Academy
of
Sciences,
Revenue,
2018
B,
Refunding,
Mandatory
Put,
3.77%,
8/01/24
..................................................
2,000,000
1,975,836
c
DesertXpress
Enterprises
LLC,
Revenue,
144A,
2020
A,
Mandatory
Put,
3.65%,
1/31/24
........................................................
5,000,000
4,981,693
California
Statewide
Communities
Development
Authority
,
Emanate
Health
Obligated
Group,
Revenue,
2020
A,
5%,
4/01/35
.............
1,300,000
1,405,061
Emanate
Health
Obligated
Group,
Revenue,
2020
A,
4%,
4/01/37
.............
700,000
688,543
Emanate
Health
Obligated
Group,
Revenue,
2020
A,
4%,
4/01/38
.............
1,350,000
1,315,516
Southern
California
Edison
Co.,
Revenue,
2010
A,
Refunding,
1.75%,
9/01/29
....
7,000,000
5,875,837
City
of
Riverside
,
Sewer,
Revenue,
2015
A,
Refunding,
5%,
8/01/34
.........................
10,605,000
11,152,789
Sewer,
Revenue,
2015
A,
Refunding,
5%,
8/01/35
.........................
11,000,000
11,534,042
c
CMFA
Special
Finance
Agency
VIII
,
Elan
Huntington
Beach
,
Revenue,
Junior
Lien
,
144A,
2021
A-2
,
4
%
,
8/01/47
.........................................
5,500,000
4,336,391
c
CSCDA
Community
Improvement
Authority
,
Waterscape
Apartments
,
Revenue
,
144A,
2021
B
,
4
%
,
9/01/46
...............................................
4,825,000
3,915,154
Golden
State
Tobacco
Securitization
Corp.
,
Revenue,
2021
B-1,
Refunding,
1.85%,
6/01/31
...........................
705,000
699,093
Revenue,
2021
B-1,
Refunding,
3.85%,
6/01/50
...........................
5,000,000
4,452,794
Los
Angeles
Department
of
Water
&
Power
,
Power
System,
Revenue,
2017
B,
Refunding,
5%,
7/01/31
...................
8,220,000
8,933,384
Power
System,
Revenue,
2017
C,
5%,
7/01/32
............................
4,615,000
5,057,478
Power
System,
Revenue,
2017
C,
5%,
7/01/33
............................
3,960,000
4,327,576
Power
System,
Revenue,
2017
C,
5%,
7/01/34
............................
4,080,000
4,436,176
Los
Angeles
Unified
School
District
,
GO
,
2018
B-1
,
5
%
,
7/01/32
................
8,000,000
8,850,135
San
Diego
Public
Facilities
Financing
Authority
,
City
of
San
Diego
Water
Utility
,
Revenue
,
2020
A
,
4
%
,
8/01/37
........................................
1,250,000
1,293,355
d
Southern
California
Public
Power
Authority
,
Revenue
,
FRN
,
2007
B
,
4.695
%
,
(
3-month
USD
LIBOR
+
1.47
%
),
11/01/38
.......................................
3,000,000
2,665,658
119,530,008
Colorado
4.5%
City
&
County
of
Denver
,
Airport
System,
Revenue,
2022
D,
Refunding,
5.75%,
11/15/41
...............
5,325,000
6,005,248
Franklin
Tax-Free
Trust
Schedule
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.
40
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Colorado
(continued)
City
&
County
of
Denver,
(continued)
Airport
System,
Revenue,
B,
5.25%,
11/15/26
.............................
$
5,000,000
$
5,069,447
Airport
System,
Revenue,
B,
5.25%,
11/15/27
.............................
4,250,000
4,311,823
Colorado
Health
Facilities
Authority
,
Boulder
Community
Health
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
10/01/29
.......................................................
650,000
707,240
Boulder
Community
Health
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
10/01/30
.......................................................
700,000
768,876
Boulder
Community
Health
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
10/01/32
.......................................................
750,000
817,773
Boulder
Community
Health
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
10/01/33
.......................................................
1,000,000
1,086,048
Boulder
Community
Health
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
10/01/34
.......................................................
1,100,000
1,189,878
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-1,
Refunding,
5%,
8/01/33
2,000,000
2,143,895
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-1,
Refunding,
5%,
8/01/36
8,500,000
8,892,817
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-1,
Refunding,
4%,
8/01/37
2,250,000
2,144,193
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-1,
Refunding,
4%,
8/01/39
1,250,000
1,165,060
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/32
2,000,000
2,151,579
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/33
3,000,000
3,215,842
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/35
4,500,000
4,751,732
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/38
2,000,000
2,073,072
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/39
5,500,000
5,665,816
CommonSpirit
Health
Obligated
Group,
Revenue,
2022
A,
5%,
11/01/40
.........
3,000,000
3,115,050
c
Fiddlers
Business
Improvement
District
,
GO
,
144A,
2022
,
Refunding
,
5
%
,
12/01/32
..
1,000,000
1,006,982
Fort
Carson
Family
Housing
LLC
,
Revenue
,
1999
,
NATL
Insured
,
7.86
%
,
11/15/29
..
31,105,000
33,829,798
Regional
Transportation
District
,
COP,
2013
A,
Refunding,
5%,
6/01/26
..................................
14,000,000
14,054,775
Denver
Transit
Partners
LLC,
Revenue,
2020
A,
Refunding,
4%,
7/15/33
........
1,000,000
1,004,586
Denver
Transit
Partners
LLC,
Revenue,
2020
A,
Refunding,
4%,
7/15/35
........
1,400,000
1,377,737
Sterling
Ranch
Community
Authority
Board
,
Sterling
Ranch
Colorado
Metropolitan
District
No.
2
,
Revenue
,
2020
A
,
Refunding
,
3.375
%
,
12/01/30
................
500,000
436,269
106,985,536
Connecticut
1.6%
City
of
Stamford
,
GO,
2019,
3%,
6/01/35
.............................................
3,025,000
2,824,632
GO,
2019,
3%,
6/01/36
.............................................
3,025,000
2,742,850
Connecticut
State
Health
&
Educational
Facilities
Authority
,
Hartford
HealthCare
Obligated
Group,
Revenue,
2021
A,
4%,
7/01/38
..........
2,500,000
2,410,706
Nuvance
Health
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
7/01/33
.....
5,000,000
5,202,344
Nuvance
Health
Obligated
Group,
Revenue,
2019
A,
Refunding,
4%,
7/01/35
.....
250,000
235,861
Nuvance
Health
Obligated
Group,
Revenue,
2019
A,
Refunding,
4%,
7/01/36
.....
4,750,000
4,394,873
Sacred
Heart
University,
Inc.,
Revenue,
K,
5%,
7/01/32
.....................
700,000
774,900
Sacred
Heart
University,
Inc.,
Revenue,
K,
5%,
7/01/33
.....................
625,000
687,552
Sacred
Heart
University,
Inc.,
Revenue,
K,
5%,
7/01/34
.....................
725,000
793,651
Stamford
Hospital
Obligated
Group
(The),
Revenue,
M,
Refunding,
5%,
7/01/26
...
200,000
207,463
Stamford
Hospital
Obligated
Group
(The),
Revenue,
M,
Refunding,
5%,
7/01/27
...
250,000
262,490
State
of
Connecticut
,
GO,
2020
C,
4%,
6/01/34
............................................
1,500,000
1,573,767
GO,
2021
A,
3%,
1/15/33
............................................
3,500,000
3,320,907
Special
Tax,
2020
A,
4%,
5/01/36
......................................
3,500,000
3,560,130
University
of
Connecticut
,
Revenue,
2016
A,
5%,
3/15/30
........................................
3,075,000
3,239,915
Revenue,
2016
A,
5%,
3/15/31
........................................
5,025,000
5,291,515
37,523,556
Franklin
Tax-Free
Trust
Schedule
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
41
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
7.0%
Alachua
County
Health
Facilities
Authority
,
Shands
Teaching
Hospital
&
Clinics
Obligated
Group,
Revenue,
B-1,
Refunding,
5%,
12/01/31
.......................................................
$
5,000,000
$
5,412,150
Shands
Teaching
Hospital
&
Clinics
Obligated
Group,
Revenue,
B-1,
Refunding,
5%,
12/01/32
.......................................................
1,600,000
1,730,235
Shands
Teaching
Hospital
&
Clinics
Obligated
Group,
Revenue,
B-1,
Refunding,
5%,
12/01/33
.......................................................
3,445,000
3,693,445
Shands
Teaching
Hospital
&
Clinics
Obligated
Group,
Revenue,
B-1,
Refunding,
5%,
12/01/35
.......................................................
2,350,000
2,471,772
Capital
Projects
Finance
Authority
,
CAPFA
Capital
Corp.
2000F
,
Revenue
,
2020
A-1
,
Refunding
,
5
%
,
10/01/30
............................................
1,000,000
1,005,599
c
Capital
Trust
Agency,
Inc.
,
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
5,345,000
4,422,287
Revenue,
144A,
2021
A-2,
5.1%,
12/01/31
...............................
1,850,000
1,575,610
SHI
-
Lake
Osborne
LLC,
Revenue,
144A,
2021
A-1
T,
5.05%,
7/01/34
..........
855,000
729,565
Centre
Lake
Community
Development
District
,
Special
Assessment
,
2021
,
2.75
%
,
5/01/30
.........................................................
255,000
219,776
City
of
Clearwater
,
Water
&
Sewer
,
Revenue
,
2017
,
Refunding
,
5
%
,
12/01/33
......
5,520,000
5,873,243
City
of
Gainesville
,
Utilities
System
,
Revenue
,
2017
A
,
5
%
,
10/01/30
.............
1,500,000
1,640,911
City
of
Jacksonville
,
Genesis
Health,
Inc.
Obligated
Group
,
Revenue
,
2020
,
Refunding
,
4
%
,
11/01/39
.....................................................
1,650,000
1,562,610
City
of
Pompano
Beach
,
John
Knox
Village
of
Florida,
Inc.
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
9/01/40
........................................................
2,500,000
2,014,179
John
Knox
Village
of
Florida,
Inc.
Obligated
Group,
Revenue,
2021
B-1,
2%,
1/01/29
4,300,000
3,607,645
City
of
Port
St.
Lucie
,
Utility
System,
Revenue,
2016,
Refunding,
4%,
9/01/30
.....................
1,500,000
1,543,637
Utility
System,
Revenue,
2016,
Refunding,
4%,
9/01/31
.....................
1,635,000
1,684,907
City
of
South
Miami
Health
Facilities
Authority,
Inc.
,
Baptist
Health
South
Florida
Obligated
Group
,
Revenue
,
2017
,
Refunding
,
4
%
,
8/15/33
...................
6,000,000
6,097,763
City
of
Tampa
,
H
Lee
Moffitt
Cancer
Center
&
Research
Institute
Obligated
Group,
Revenue,
2020
B,
4%,
7/01/38
..................................................
700,000
685,765
H
Lee
Moffitt
Cancer
Center
&
Research
Institute
Obligated
Group,
Revenue,
2020
B,
4%,
7/01/39
..................................................
500,000
486,875
H
Lee
Moffitt
Cancer
Center
&
Research
Institute
Obligated
Group,
Revenue,
2020
B,
5%,
7/01/40
..................................................
1,000,000
1,031,159
Escambia
County
Health
Facilities
Authority
,
Baptist
Hospital,
Inc.
Obligated
Group
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
8/15/34
...............................
1,000,000
1,044,928
Greater
Orlando
Aviation
Authority
,
Revenue,
2019
A,
5%,
10/01/33
.......................................
10,500,000
11,329,931
Revenue,
2019
A,
4%,
10/01/35
.......................................
5,000,000
4,975,411
Herons
Glen
Recreation
District
,
Special
Assessment,
2020,
Refunding,
BAM
Insured,
3%,
5/01/32
.............
185,000
181,150
Special
Assessment,
2020,
Refunding,
BAM
Insured,
3%,
5/01/33
.............
300,000
286,296
Special
Assessment,
2020,
Refunding,
BAM
Insured,
3%,
5/01/34
.............
245,000
228,382
Special
Assessment,
2020,
Refunding,
BAM
Insured,
3%,
5/01/35
.............
255,000
233,484
Special
Assessment,
2020,
Refunding,
BAM
Insured,
3%,
5/01/36
.............
260,000
232,371
JEA
Water
&
Sewer
System
,
Revenue,
2014
A,
5%,
10/01/26
.......................................
1,455,000
1,482,044
Revenue,
2014
A,
5%,
10/01/27
.......................................
5,130,000
5,222,609
Revenue,
2014
A,
5%,
10/01/29
.......................................
1,205,000
1,225,982
Revenue,
2017
A,
Refunding,
5%,
10/01/31
..............................
17,435,000
19,074,050
Lee
Memorial
Health
System
,
Lee
Memorial
Health
System
Obligated
Group,
Revenue,
A-1,
Refunding,
4%,
4/01/37
........................................................
5,000,000
4,912,929
Obligated
Group,
Revenue,
2019
A-1,
Refunding,
4%,
4/01/49
................
12,000,000
10,559,362
Franklin
Tax-Free
Trust
Schedule
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.
42
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
c
Leon
County
Housing
Finance
Authority
,
Revenue
,
144A,
2022
A-1
,
Zero
Cpn.,
5/01/57
$
6,965,000
$
5,833,187
Leon
County
School
District
,
Revenue
,
2014
,
5
%
,
9/01/25
.....................
6,040,000
6,095,765
Middleton
Community
Development
District
A
,
Special
Assessment
,
2022
,
5.45
%
,
5/01/32
.........................................................
1,000,000
1,017,320
Orange
County
Health
Facilities
Authority
,
Orlando
Health
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
10/01/28
.....
1,000,000
1,062,938
Orlando
Health
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
10/01/30
.....
2,875,000
3,050,691
Orlando
Utilities
Commission
,
Revenue,
2012
A,
Refunding,
5%,
10/01/24
..............................
2,405,000
2,474,394
Revenue,
2012
A,
Refunding,
5%,
10/01/25
..............................
2,000,000
2,098,491
Revenue,
2018
A,
5%,
10/01/33
.......................................
1,755,000
1,908,209
Palm
Beach
County
School
District
,
COP
,
2014
B
,
5
%
,
8/01/25
.................
4,000,000
4,176,564
Poitras
East
Community
Development
District
,
Special
Assessment,
2023,
4.2%,
5/01/33
...............................
800,000
781,192
Special
Assessment,
2023,
5%,
5/01/43
.................................
2,000,000
1,921,287
River
Hall
Community
Development
District
,
Special
Assessment
,
2021
A-1
,
Refunding
,
3
%
,
5/01/31
......................................................
500,000
435,752
State
of
Florida
,
GO,
2015
E,
Refunding,
4%,
6/01/33
...................................
11,855,000
12,142,102
GO,
2017
C,
Refunding,
4%,
6/01/32
...................................
7,855,000
8,220,037
GO,
2017
C,
Refunding,
4%,
6/01/33
...................................
5,000,000
5,218,585
Tohopekaliga
Water
Authority
,
Revenue
,
2016
,
Refunding
,
4
%
,
10/01/32
..........
2,855,000
2,942,809
167,857,385
Georgia
5.5%
City
of
Atlanta
,
Airport
Passenger
Facility
Charge,
Revenue,
Sub.
Lien,
2014
A,
Refunding,
5%,
1/01/27
........................................................
7,000,000
7,101,257
Airport
Passenger
Facility
Charge,
Revenue,
Sub.
Lien,
2014
A,
Refunding,
5%,
1/01/28
........................................................
5,100,000
5,177,689
Water
&
Wastewater,
Revenue,
2015,
Refunding,
5%,
11/01/26
...............
5,165,000
5,388,271
Water
&
Wastewater,
Revenue,
2018
C,
Refunding,
5%,
11/01/33
..............
6,750,000
7,366,066
Water
&
Wastewater,
Revenue,
2018
C,
Refunding,
5%,
11/01/34
..............
3,000,000
3,260,465
Cobb
County
Kennestone
Hospital
Authority
,
WellStar
Health
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
4/01/32
900,000
920,183
WellStar
Health
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
4/01/33
565,000
575,192
WellStar
Health
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
4/01/34
450,000
456,273
WellStar
Health
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
4/01/35
865,000
875,523
WellStar
Health
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
4/01/36
1,400,000
1,394,731
WellStar
Health
System
Obligated
Group,
Revenue,
2020
B,
Refunding,
4%,
4/01/32
250,000
255,607
WellStar
Health
System
Obligated
Group,
Revenue,
2020
B,
Refunding,
4%,
4/01/33
250,000
254,510
WellStar
Health
System
Obligated
Group,
Revenue,
2020
B,
Refunding,
4%,
4/01/34
275,000
278,833
WellStar
Health
System
Obligated
Group,
Revenue,
2020
B,
Refunding,
4%,
4/01/35
275,000
278,345
WellStar
Health
System
Obligated
Group,
Revenue,
2020
B,
Refunding,
4%,
4/01/36
275,000
273,965
Development
Authority
for
Fulton
County
,
Spelman
College,
Revenue,
2015,
Refunding,
5%,
6/01/28
...................
3,785,000
3,911,215
Spelman
College,
Revenue,
2015,
Refunding,
5%,
6/01/29
...................
4,385,000
4,527,382
Spelman
College,
Revenue,
2015,
Refunding,
5%,
6/01/30
...................
4,805,000
4,959,968
b
Development
Authority
of
Monroe
County
(The)
,
Georgia
Power
Co.
,
Revenue,
First
Series
,
2009
,
Refunding
,
Mandatory
Put
,
1
%
,
8/21/26
......................
2,375,000
2,083,351
Gainesville
&
Hall
County
Hospital
Authority
,
Northeast
Georgia
Health
System
Obligated
Group,
Revenue,
A,
Refunding,
5%,
2/15/27
........................................................
1,750,000
1,846,557
Northeast
Georgia
Health
System
Obligated
Group,
Revenue,
A,
Refunding,
5%,
2/15/28
........................................................
2,100,000
2,223,190
Northeast
Georgia
Health
System
Obligated
Group,
Revenue,
A,
Refunding,
5%,
2/15/29
........................................................
2,000,000
2,122,565
Franklin
Tax-Free
Trust
Schedule
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
43
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%,
2/15/30
........................................................
$
1,000,000
$
1,061,961
Main
Street
Natural
Gas,
Inc.
,
Revenue,
2021
C,
4%,
12/01/25
.......................................
1,000,000
992,611
b
Revenue,
2021
C,
Mandatory
Put,
4%,
12/01/28
...........................
5,000,000
4,935,583
b
Revenue,
2022
A,
Mandatory
Put,
4%,
12/01/29
...........................
10,000,000
9,817,335
b,c
Revenue,
144A,
2022
C,
Mandatory
Put,
4%,
11/01/27
......................
7,000,000
6,657,328
b
Revenue,
2023
A,
Mandatory
Put,
5%,
6/01/30
............................
10,000,000
10,406,735
b
Revenue,
2023
B,
Mandatory
Put,
5%,
3/01/30
............................
31,495,000
33,304,599
Municipal
Electric
Authority
of
Georgia
,
Revenue,
2019
A,
5%,
1/01/30
........................................
1,000,000
1,079,580
Revenue,
2019
A,
5%,
1/01/31
........................................
600,000
647,983
Revenue,
2019
A,
5%,
1/01/32
........................................
500,000
539,615
Revenue,
2019
A,
5%,
1/01/33
........................................
1,000,000
1,077,388
Revenue,
2019
B,
5%,
1/01/29
........................................
500,000
531,149
Revenue,
2019
B,
5%,
1/01/30
........................................
480,000
506,913
Revenue,
2019
B,
5%,
1/01/31
........................................
700,000
737,789
Revenue,
2019
B,
5%,
1/01/32
........................................
750,000
788,103
Revenue,
2019
B,
5%,
1/01/33
........................................
1,045,000
1,094,690
Revenue,
2019
B,
5%,
1/01/34
........................................
700,000
729,744
130,440,244
Hawaii
1.1%
State
of
Hawaii
,
GO,
EO,
5%,
8/01/28
...............................................
21,695,000
22,254,308
Airports
System,
Revenue,
2020
A,
4%,
7/01/35
...........................
4,420,000
4,281,818
26,536,126
Illinois
6.9%
Chicago
O'Hare
International
Airport
,
Revenue,
Senior
Lien,
2020
C,
Refunding,
4%,
1/01/35
.....................
4,000,000
4,069,260
Revenue,
Senior
Lien,
2020
E,
Refunding,
4%,
1/01/35
.....................
1,560,000
1,587,011
Chicago
Park
District
,
GO,
2020
F-2,
Refunding,
5%,
1/01/32
..................................
1,500,000
1,632,432
GO,
2020
F-2,
Refunding,
5%,
1/01/33
..................................
3,000,000
3,252,285
GO,
2020
F-2,
Refunding,
4%,
1/01/34
..................................
1,100,000
1,103,007
GO,
2020
F-2,
Refunding,
5%,
1/01/35
..................................
2,375,000
2,550,832
Chicago
Transit
Authority
Capital
Grant
Receipts
,
Revenue
,
2021
,
Refunding
,
5
%
,
6/01/28
.........................................................
1,750,000
1,868,668
City
of
Berwyn
,
GO
,
2022
B
,
Refunding
,
AGMC
Insured
,
4
%
,
12/01/41
...........
6,000,000
5,628,271
City
of
Chicago
,
GO,
1999,
NATL
Insured,
Zero
Cpn.,
1/01/31
.............................
4,000,000
2,882,440
GO,
2003
B,
Refunding,
5%,
1/01/26
...................................
1,795,000
1,819,945
GO,
2020
A,
Refunding,
5%,
1/01/29
...................................
2,500,000
2,585,348
GO,
2021
A,
Refunding,
5%,
1/01/33
...................................
9,500,000
9,854,435
GO,
2021
B,
Refunding,
4%,
1/01/35
...................................
4,295,000
3,996,638
GO,
2021
B,
Refunding,
4%,
1/01/38
...................................
5,150,000
4,594,976
GO,
2023
A,
5%,
1/01/35
............................................
10,000,000
10,360,435
City
of
Galesburg
,
Knox
College,
Revenue,
2021
A,
Refunding,
4%,
10/01/36
...................
1,125,000
1,063,062
Knox
College,
Revenue,
2021
A,
Refunding,
4%,
10/01/41
...................
1,475,000
1,311,386
County
of
Cook
,
Sales
Tax
,
Revenue
,
2021
A
,
Refunding
,
4
%
,
11/15/40
...........
5,250,000
4,954,831
Illinois
Finance
Authority
,
Carle
Foundation
Obligated
Group
(The),
Revenue,
2021
A,
Refunding,
4%,
8/15/40
12,645,000
12,025,118
Christian
Homes,
Inc.
Obligated
Group,
Revenue,
2021
A,
4%,
5/15/28
.........
1,065,000
970,485
Christian
Homes,
Inc.
Obligated
Group,
Revenue,
2021
A,
4%,
5/15/29
.........
1,100,000
984,199
Franklin
Tax-Free
Trust
Schedule
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)
Illinois
(continued)
Illinois
Finance
Authority,
(continued)
Christian
Homes,
Inc.
Obligated
Group,
Revenue,
2021
A,
4%,
5/15/30
.........
$
1,310,000
$
1,150,770
Christian
Homes,
Inc.
Obligated
Group,
Revenue,
2021
A,
4%,
5/15/31
.........
1,095,000
944,387
Northwestern
University,
Revenue,
2015,
5%,
12/01/28
.....................
1,675,000
1,868,721
Metropolitan
Pier
&
Exposition
Authority
,
Revenue
,
2022
A
,
Refunding
,
3
%
,
6/15/25
..
1,000,000
980,906
Northern
Illinois
University
,
Revenue,
2021,
BAM
Insured,
4%,
10/01/41
.............................
400,000
373,978
Revenue,
2021,
BAM
Insured,
4%,
10/01/43
.............................
2,075,000
1,922,088
Railsplitter
Tobacco
Settlement
Authority
,
Revenue
,
2017
,
5
%
,
6/01/26
...........
3,500,000
3,679,063
State
of
Illinois
,
GO,
2013
A,
AGMC
Insured,
5%,
4/01/25
................................
18,000,000
18,015,266
GO,
2014,
AGMC
Insured,
5%,
2/01/26
.................................
5,650,000
5,727,994
GO,
2016,
Refunding,
5%,
2/01/26
.....................................
1,000,000
1,030,846
GO,
2016,
Refunding,
5%,
2/01/29
.....................................
2,250,000
2,340,534
GO,
2017
D,
3.25%,
11/01/26
.........................................
750,000
733,190
GO,
2018
A,
Refunding,
5%,
10/01/29
..................................
1,125,000
1,185,898
GO,
2018
B,
Refunding,
5%,
10/01/31
..................................
1,500,000
1,572,403
GO,
2018
B,
Refunding,
5%,
10/01/32
..................................
1,120,000
1,170,624
GO,
2019
B,
5%,
11/01/30
...........................................
1,125,000
1,192,225
GO,
2019
B,
4%,
11/01/38
...........................................
1,030,000
958,070
GO,
2020
C,
4%,
10/01/37
...........................................
8,170,000
7,682,093
GO,
2021
A,
5%,
3/01/46
............................................
2,000,000
2,021,009
GO,
2021
B,
4%,
12/01/39
...........................................
2,500,000
2,300,213
GO,
2022
A,
5%,
3/01/29
............................................
6,385,000
6,763,350
GO,
2022
B,
5%,
10/01/30
...........................................
10,000,000
10,671,805
GO,
2022
C,
5.5%,
10/01/40
.........................................
3,700,000
3,972,496
Sales
Tax,
Revenue,
Junior
Lien,
2021
C,
Refunding,
5%,
6/15/26
.............
2,500,000
2,597,085
c
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
5,533,480
165,483,558
Indiana
1.5%
c
City
of
Goshen
,
Green
Oaks
of
Goshen
LLC
,
Revenue
,
144A,
2021
B
,
4.75
%
,
8/01/24
1,560,000
1,477,694
Indiana
Finance
Authority
,
e
Greencroft
Goshen
Obligated
Group,
Revenue,
2023
A,
Refunding,
4%,
11/15/26
..
1,065,000
1,009,265
e
Greencroft
Goshen
Obligated
Group,
Revenue,
2023
A,
Refunding,
4%,
11/15/27
..
1,150,000
1,071,376
e
Greencroft
Goshen
Obligated
Group,
Revenue,
2023
A,
Refunding,
4%,
11/15/28
..
1,235,000
1,130,900
e
Greencroft
Goshen
Obligated
Group,
Revenue,
2023
A,
Refunding,
4%,
11/15/29
..
1,330,000
1,196,912
e
Greencroft
Goshen
Obligated
Group,
Revenue,
2023
A,
Refunding,
4%,
11/15/30
..
1,425,000
1,260,190
Indianapolis
Power
&
Light
Co.,
Revenue,
2021
A,
Refunding,
1.4%,
8/01/29
.....
3,000,000
2,579,682
State
Revolving
Fund,
Revenue,
2018
A,
5%,
2/01/35
......................
9,795,000
10,725,970
Indianapolis
Local
Public
Improvement
Bond
Bank
,
Revenue
,
2021
A
,
Refunding
,
AGMC
Insured
,
4
%
,
6/01/37
..........................................
15,000,000
14,898,470
35,350,459
Iowa
1.0%
Iowa
Higher
Education
Loan
Authority
,
Des
Moines
University
Osteopathic
Medical
Center,
Revenue,
2020,
5%,
10/01/31
.
1,800,000
1,940,019
Des
Moines
University
Osteopathic
Medical
Center,
Revenue,
2020,
5%,
10/01/32
.
1,920,000
2,063,199
Des
Moines
University
Osteopathic
Medical
Center,
Revenue,
2020,
5%,
10/01/33
.
2,030,000
2,171,416
Des
Moines
University
Osteopathic
Medical
Center,
Revenue,
2020,
5%,
10/01/34
.
2,135,000
2,266,023
Des
Moines
University
Osteopathic
Medical
Center,
Revenue,
2020,
5%,
10/01/35
.
1,250,000
1,315,406
Des
Moines
University
Osteopathic
Medical
Center,
Revenue,
2020,
5%,
10/01/36
.
2,470,000
2,579,531
Des
Moines
University
Osteopathic
Medical
Center,
Revenue,
2020,
5%,
10/01/37
.
2,595,000
2,696,833
Iowa
Tobacco
Settlement
Authority
,
Revenue,
2021
A-2,
1,
Refunding,
4%,
6/01/49
............................
8,500,000
7,421,868
Franklin
Tax-Free
Trust
Schedule
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)
Iowa
(continued)
Iowa
Tobacco
Settlement
Authority,
(continued)
Revenue,
2021
B-1,
2,
Refunding,
4%,
6/01/49
...........................
$
1,415,000
$
1,385,398
23,839,693
Kansas
0.3%
State
of
Kansas
,
Department
of
Transportation
,
Revenue
,
2014
A
,
5
%
,
9/01/28
.....
8,000,000
8,226,432
Kentucky
1.3%
Eastern
Kentucky
University
,
Revenue,
2021
A,
Refunding,
4%,
10/01/29
..............................
1,355,000
1,415,157
Revenue,
2021
A,
Refunding,
4%,
10/01/30
..............................
1,410,000
1,482,318
Revenue,
2021
A,
Refunding,
4%,
10/01/31
..............................
1,470,000
1,555,353
Kentucky
Economic
Development
Finance
Authority
,
CommonSpirit
Health
Obligated
Group
,
Revenue
,
2019
A-1
,
Refunding
,
5
%
,
8/01/34
........................
1,000,000
1,065,249
Kentucky
Municipal
Power
Agency
,
Revenue,
2016
A,
Refunding,
NATL
Insured,
5%,
9/01/34
....................
1,500,000
1,558,004
Revenue,
2019
A,
Refunding,
5%,
9/01/31
...............................
1,500,000
1,617,317
Revenue,
2019
A,
Refunding,
5%,
9/01/32
...............................
1,600,000
1,722,875
Revenue,
2019
A,
Refunding,
5%,
9/01/33
...............................
1,000,000
1,074,787
Kentucky
State
Property
&
Building
Commission
,
Kentucky
Finance
and
Administration
Cabinet
,
Revenue
,
BAM
Insured
,
5
%
,
5/01/32
............................
2,000,000
2,187,068
Kentucky
Turnpike
Authority
,
Kentucky
Transportation
Cabinet,
Revenue,
B,
Refunding,
5%,
7/01/26
.........
2,570,000
2,724,538
Kentucky
Transportation
Cabinet,
Revenue,
B,
Refunding,
5%,
7/01/28
.........
3,000,000
3,255,233
Paducah
Electric
Plant
Board
,
Revenue,
2016
A,
Refunding,
AGMC
Insured,
5%,
10/01/29
..................
5,500,000
5,797,910
Revenue,
2016
A,
Refunding,
AGMC
Insured,
5%,
10/01/31
..................
5,500,000
5,765,727
31,221,536
Louisiana
3.6%
East
Baton
Rouge
Sewerage
Commission
,
Revenue,
2019
A,
Refunding,
4%,
2/01/35
...............................
1,310,000
1,337,129
Revenue,
2019
A,
Refunding,
4%,
2/01/36
...............................
2,000,000
2,018,262
Jefferson
Sales
Tax
District
,
Revenue
,
2019
B
,
AGMC
Insured
,
4
%
,
12/01/36
.......
6,000,000
6,037,959
Lafayette
Consolidated
Government
,
Revenue,
2015,
Refunding,
AGMC
Insured,
5%,
11/01/25
...................
2,400,000
2,510,701
Revenue,
2015,
Refunding,
AGMC
Insured,
5%,
11/01/27
...................
3,500,000
3,646,874
Revenue,
2015,
Refunding,
AGMC
Insured,
5%,
11/01/29
...................
4,685,000
4,868,252
c
Louisiana
Local
Government
Environmental
Facilities
&
Community
Development
Authority
,
City
of
New
Orleans,
Revenue,
144A,
2021,
4%,
11/01/46
...................
9,900,000
8,534,820
Invest
in
Americas
Veterans
Foundation
Louisiana,
Inc.,
Revenue,
144A,
2020
A,
Refunding,
3.5%,
12/01/32
.........................................
1,960,000
1,666,093
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A,
3.75%,
10/01/38
4,592,712
3,620,302
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
B,
5.25%,
10/01/32
5,350,000
4,495,623
Louisiana
Public
Facilities
Authority
,
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2016,
5%,
5/15/29
.......
1,240,000
1,298,273
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2016,
Pre-Refunded,
5%,
5/15/29
........................................................
10,000
10,565
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2016,
5%,
5/15/30
.......
995,000
1,042,189
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2016,
Pre-Refunded,
5%,
5/15/30
........................................................
5,000
5,282
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2016,
5%,
5/15/32
.......
1,485,000
1,554,637
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2016,
Pre-Refunded,
5%,
5/15/32
........................................................
15,000
15,847
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
5/15/28
1,000,000
1,059,579
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
5/15/29
2,000,000
2,123,740
Franklin
Tax-Free
Trust
Schedule
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)
Louisiana
(continued)
Louisiana
Public
Facilities
Authority,
(continued)
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
5/15/30
$
2,250,000
$
2,390,470
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
5/15/31
1,745,000
1,854,000
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
5/15/32
1,750,000
1,858,043
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
5/15/33
2,000,000
2,119,003
Tulane
University,
Revenue,
2020
A,
Refunding,
5%,
4/01/36
.................
4,750,000
5,187,981
Tulane
University,
Revenue,
2020
A,
Refunding,
5%,
4/01/37
.................
2,000,000
2,165,202
Tulane
University,
Revenue,
2020
A,
Refunding,
5%,
4/01/38
.................
3,120,000
3,366,380
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
2,341,720
Port
New
Orleans
Board
of
Commissioners
,
Revenue,
2020
E,
5%,
4/01/35
........................................
1,000,000
1,043,422
Revenue,
2020
E,
5%,
4/01/36
........................................
1,495,000
1,548,363
Revenue,
2020
E,
5%,
4/01/37
........................................
1,065,000
1,097,956
Revenue,
2020
E,
5%,
4/01/38
........................................
1,000,000
1,027,516
Revenue,
2020
E,
5%,
4/01/39
........................................
2,750,000
2,820,118
State
of
Louisiana
,
GO
,
2014
C
,
Refunding
,
5
%
,
8/01/25
......................
10,000,000
10,263,398
84,929,699
Maine
0.2%
Maine
Health
&
Higher
Educational
Facilities
Authority
,
MaineHealth
Obligated
Group,
Revenue,
2020
A,
5%,
7/01/35
................
1,000,000
1,082,126
MaineHealth
Obligated
Group,
Revenue,
2020
A,
4%,
7/01/36
................
1,000,000
998,696
MaineHealth
Obligated
Group,
Revenue,
2020
A,
4%,
7/01/37
................
1,150,000
1,127,811
MaineHealth
Obligated
Group,
Revenue,
2020
A,
4%,
7/01/38
................
2,690,000
2,614,507
5,823,140
Maryland
3.5%
City
of
Baltimore
,
Wastewater
Utility
Fund,
Revenue,
2017
A,
5%,
7/01/29
.....................
1,000,000
1,076,173
Wastewater
Utility
Fund,
Revenue,
2017
A,
5%,
7/01/30
.....................
2,940,000
3,159,821
Wastewater
Utility
Fund,
Revenue,
2017
A,
5%,
7/01/31
.....................
2,085,000
2,240,713
Wastewater
Utility
Fund,
Revenue,
2017
A,
5%,
7/01/32
.....................
3,240,000
3,473,743
Wastewater
Utility
Fund,
Revenue,
2017
C,
Refunding,
5%,
7/01/30
............
6,450,000
6,956,547
Wastewater
Utility
Fund,
Revenue,
2017
C,
Refunding,
5%,
7/01/32
............
5,905,000
6,362,069
Wastewater
Utility
Fund,
Revenue,
Senior
Lien,
D,
Refunding,
5%,
7/01/28
......
2,790,000
2,891,864
Wastewater
Utility
Fund,
Revenue,
Senior
Lien,
D,
Refunding,
5%,
7/01/29
......
5,835,000
6,042,793
Water
Utility
Fund,
Revenue,
2017
A,
5%,
7/01/29
.........................
1,320,000
1,420,548
Water
Utility
Fund,
Revenue,
2017
A,
5%,
7/01/30
.........................
1,785,000
1,918,463
Water
Utility
Fund,
Revenue,
2017
A,
5%,
7/01/31
.........................
3,765,000
4,039,115
Water
Utility
Fund,
Revenue,
2017
A,
5%,
7/01/32
.........................
4,000,000
4,288,572
County
of
Anne
Arundel
,
GO
,
2015
,
5
%
,
4/01/29
............................
7,495,000
7,844,715
Maryland
Community
Development
Administration
,
Residential
,
Revenue
,
2019
B
,
Refunding
,
3
%
,
9/01/34
.............................................
5,000,000
4,581,210
Maryland
Health
&
Higher
Educational
Facilities
Authority
,
Frederick
Health,
Inc.
Obligated
Group,
Revenue,
2020,
Refunding,
3.25%,
7/01/39
500,000
399,481
Frederick
Health,
Inc.
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
7/01/40
..
300,000
276,775
University
of
Maryland
Medical
System
Obligated
Group,
Revenue,
2017
B,
Refunding,
5%,
7/01/30
............................................
8,520,000
9,088,482
University
of
Maryland
Medical
System
Obligated
Group,
Revenue,
2017
B,
Refunding,
5%,
7/01/31
............................................
7,415,000
7,909,044
Town
of
Chestertown
,
Washington
College,
Revenue,
2021
A,
Refunding,
5%,
3/01/28
...............
1,000,000
1,039,961
Washington
College,
Revenue,
2021
A,
Refunding,
5%,
3/01/29
...............
1,340,000
1,407,942
Washington
College,
Revenue,
2021
A,
Refunding,
5%,
3/01/30
...............
2,810,000
2,965,366
Washington
College,
Revenue,
2021
A,
Refunding,
5%,
3/01/31
...............
1,480,000
1,567,185
Franklin
Tax-Free
Trust
Schedule
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)
Maryland
(continued)
Town
of
Chestertown,
(continued)
Washington
College,
Revenue,
2021
A,
Refunding,
5%,
3/01/32
...............
$
1,550,000
$
1,637,141
82,587,723
Massachusetts
1.9%
Commonwealth
of
Massachusetts
,
GO,
A,
Refunding,
5%,
7/01/28
.......................................
7,500,000
7,846,199
GO,
A,
Refunding,
5%,
7/01/29
.......................................
6,000,000
6,270,110
Massachusetts
Development
Finance
Agency
,
Wellforce
Obligated
Group,
Revenue,
2020
C,
Refunding,
AGMC
Insured,
5%,
10/01/30
.......................................................
150,000
167,295
Wellforce
Obligated
Group,
Revenue,
2020
C,
Refunding,
AGMC
Insured,
5%,
10/01/31
.......................................................
475,000
524,449
Wellforce
Obligated
Group,
Revenue,
2020
C,
Refunding,
AGMC
Insured,
5%,
10/01/32
.......................................................
450,000
495,047
Wellforce
Obligated
Group,
Revenue,
2020
C,
Refunding,
AGMC
Insured,
5%,
10/01/33
.......................................................
525,000
575,996
Wellforce
Obligated
Group,
Revenue,
2020
C,
Refunding,
AGMC
Insured,
5%,
10/01/34
.......................................................
450,000
490,799
Massachusetts
Port
Authority
,
Revenue,
2019
C,
5%,
7/01/32
........................................
4,220,000
4,566,118
Revenue,
2019
C,
5%,
7/01/33
........................................
4,430,000
4,785,176
Massachusetts
Water
Resources
Authority
,
Revenue
,
C
,
Refunding
,
5
%
,
8/01/32
....
13,920,000
15,187,228
University
of
Massachusetts
Building
Authority
,
Revenue
,
2017-3
,
Refunding
,
5
%
,
11/01/32
........................................................
5,000,000
5,489,833
46,398,250
Michigan
1.6%
Lansing
Board
of
Water
&
Light
,
Revenue
,
2019
A
,
5
%
,
7/01/36
.................
4,645,000
5,100,315
Lansing
School
District
,
GO,
2016
I,
5%,
5/01/30
.............................................
1,860,000
1,968,443
GO,
2016
I,
5%,
5/01/31
.............................................
2,010,000
2,125,320
GO,
2016
I,
5%,
5/01/32
.............................................
2,310,000
2,438,960
Michigan
Finance
Authority
,
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
A,
1,
Refunding,
4%,
6/01/35
...
1,000,000
984,085
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2016
MI,
Refunding,
5%,
12/01/34
8,200,000
8,659,084
Michigan
State
Hospital
Finance
Authority
,
Ascension
Health
Credit
Group,
Revenue,
1999
B-3,
4%,
11/15/33
.............
5,100,000
5,187,155
Michigan
Finance
Authority,
Revenue,
2008
C,
5%,
12/01/32
.................
1,115,000
1,209,947
Michigan
Finance
Authority,
Revenue,
2008
C,
Pre-Refunded,
5%,
12/01/32
......
135,000
147,922
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2008
C,
Refunding,
5%,
12/01/31
.
2,700,000
2,931,981
Michigan
State
Housing
Development
Authority
,
Revenue
,
2019
A-1
,
3
%
,
10/01/39
..
3,500,000
2,853,921
b
Michigan
Strategic
Fund
,
Consumers
Energy
Co.
,
Revenue
,
2005
,
Mandatory
Put
,
0.875
%
,
10/08/26
..................................................
5,000,000
4,597,665
38,204,798
Mississippi
0.4%
Mississippi
Home
Corp.
,
c
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A-5,
4%,
6/01/46
..
8,143,623
5,948,281
Patriot
Services
Group
Pascagoula
Portfolio
II
Obligated
Group,
Revenue,
2021
D-8,
3.65%,
6/01/33
..................................................
101,412
85,234
Patriot
Services
Group
Pascagoula
Portfolio
II
Obligated
Group,
Revenue,
2021
D-8,
4.15%,
6/01/46
..................................................
400,000
299,555
c
Patriot
Services
Group
Pascagoula
Portfolio
II
Obligated
Group,
Revenue,
144A,
2021
E-8,
5.5%,
6/01/36
...........................................
2,540,000
2,055,600
8,388,670
Franklin
Tax-Free
Trust
Schedule
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)
Missouri
1.6%
Health
&
Educational
Facilities
Authority
of
the
State
of
Missouri
,
Mercy
Health
,
Revenue
,
2018
A
,
Refunding
,
5
%
,
6/01/31
...............................
$
12,500,000
$
13,670,495
Missouri
Joint
Municipal
Electric
Utility
Commission
,
Plum
Point
Project,
Revenue,
2014
A,
Refunding,
5%,
1/01/27
................
3,250,000
3,337,404
Plum
Point
Project,
Revenue,
2014
A,
Refunding,
5%,
1/01/28
................
4,500,000
4,604,137
Plum
Point
Project,
Revenue,
2014
A,
Refunding,
5%,
1/01/29
................
4,045,000
4,137,886
Southeast
Missouri
State
University
,
Revenue,
2020,
Refunding,
4%,
4/01/33
.................................
2,745,000
2,813,442
Revenue,
2020,
Refunding,
4%,
4/01/34
.................................
2,180,000
2,218,531
Revenue,
2020,
Refunding,
4%,
4/01/35
.................................
1,575,000
1,581,522
Revenue,
2020,
Refunding,
4%,
4/01/36
.................................
3,205,000
3,148,169
Revenue,
2020,
Refunding,
4%,
4/01/37
.................................
2,000,000
1,934,093
37,445,679
Nebraska
0.2%
b
Central
Plains
Energy
Project
,
Revenue
,
2022-1
,
Mandatory
Put
,
5
%
,
10/01/29
.....
5,000,000
5,152,673
New
Jersey
2.4%
Hudson
County
Improvement
Authority
,
County
of
Hudson
,
Revenue
,
2010
,
Refunding
,
AGMC
Insured
,
5.375
%
,
10/01/24
.....................................
2,050,000
2,118,988
New
Jersey
Economic
Development
Authority
,
New
Jersey
Transit
Corp.,
Revenue,
2022
A,
5%,
11/01/39
...................
16,000,000
16,950,187
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2019
LLL,
5%,
6/15/39
1,000,000
1,044,125
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
AAA,
5%,
6/15/34
....
5,000,000
5,242,273
New
Jersey
Educational
Facilities
Authority
,
State
of
New
Jersey,
Revenue,
2016
B,
5%,
9/01/36
.......................
5,000,000
5,173,368
Stevens
Institute
of
Technology
International,
Inc.,
Revenue,
2020
A,
5%,
7/01/33
.
680,000
730,272
Stevens
Institute
of
Technology
International,
Inc.,
Revenue,
2020
A,
5%,
7/01/34
.
545,000
582,435
Stevens
Institute
of
Technology
International,
Inc.,
Revenue,
2020
A,
5%,
7/01/35
.
565,000
599,110
New
Jersey
Health
Care
Facilities
Financing
Authority
,
Inspira
Health
Obligated
Group,
Revenue,
2017
A,
5%,
7/01/30
...............
900,000
951,488
Inspira
Health
Obligated
Group,
Revenue,
2017
A,
5%,
7/01/31
...............
1,080,000
1,141,684
New
Jersey
Higher
Education
Student
Assistance
Authority
,
Revenue,
Senior
Lien,
2020
A,
Refunding,
3.5%,
12/01/39
...................
3,445,000
3,291,270
Revenue,
Senior
Lien,
2020
B,
3.5%,
12/01/39
............................
1,600,000
1,528,601
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue,
2021
A,
Refunding,
4%,
6/15/36
...............................
6,200,000
6,200,530
Revenue,
2022
A,
4%,
6/15/41
........................................
7,500,000
7,058,038
New
Jersey
Turnpike
Authority
,
Revenue
,
2021
A
,
4
%
,
1/01/42
.................
1,800,000
1,750,723
Newark
Board
of
Education
,
GO,
2021,
Refunding,
BAM
Insured,
5%,
7/15/26
..........................
275,000
290,583
GO,
2021,
Refunding,
BAM
Insured,
5%,
7/15/27
..........................
330,000
353,825
GO,
2021,
Refunding,
BAM
Insured,
5%,
7/15/28
..........................
325,000
353,274
GO,
2021,
Refunding,
BAM
Insured,
5%,
7/15/29
..........................
320,000
352,873
GO,
2021,
Refunding,
BAM
Insured,
5%,
7/15/31
..........................
400,000
452,029
GO,
2021,
Refunding,
BAM
Insured,
5%,
7/15/32
..........................
430,000
485,003
56,650,679
New
Mexico
0.5%
City
of
Farmington
,
Public
Service
Co.
of
New
Mexico
,
Revenue
,
2016
A
,
Refunding
,
2.15
%
,
4/01/33
...................................................
13,500,000
10,934,475
New
York
7.2%
City
of
New
York
,
GO,
2013
D,
Refunding,
5%,
8/01/27
...................................
10,000,000
10,019,820
GO,
2015
C,
Refunding,
5%,
8/01/25
...................................
2,000,000
2,071,543
GO,
2015
C,
Refunding,
5%,
8/01/27
...................................
7,500,000
7,764,039
GO,
2019
E,
Refunding,
5%,
8/01/32
...................................
2,000,000
2,225,224
Franklin
Tax-Free
Trust
Schedule
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)
New
York
(continued)
City
of
New
York,
(continued)
GO,
2019
E,
Refunding,
5%,
8/01/34
...................................
$
3,500,000
$
3,870,284
GO,
2021
C,
4%,
8/01/37
............................................
5,000,000
4,986,228
GO,
2023
A-1,
4%,
9/01/46
..........................................
5,000,000
4,739,046
GO,
A-1
2017
A,
5%,
8/01/29
.........................................
10,000,000
10,565,290
Metropolitan
Transportation
Authority
,
b
Revenue,
2015
A-2,
Mandatory
Put,
5%,
5/15/30
..........................
7,000,000
7,424,051
Revenue,
2016
A-2,
Refunding,
5%,
11/15/25
.............................
21,090,000
21,819,588
Revenue,
2016
B,
Refunding,
5%,
11/15/34
..............................
3,265,000
3,328,558
Revenue,
2017
B,
Refunding,
5%,
11/15/26
..............................
2,140,000
2,236,131
Revenue,
2017
C-1,
Refunding,
5%,
11/15/31
............................
1,870,000
1,935,155
Revenue,
2017
C-1,
Refunding,
4%,
11/15/37
............................
2,500,000
2,331,822
Revenue,
2020
A-1,
AGMC
Insured,
4%,
11/15/41
.........................
5,545,000
5,257,187
New
York
City
Industrial
Development
Agency
,
Queens
Ballpark
Co.
LLC,
Revenue,
2021
A,
Refunding,
AGMC
Insured,
5%,
1/01/27
1,000,000
1,061,193
Queens
Ballpark
Co.
LLC,
Revenue,
2021
A,
Refunding,
AGMC
Insured,
5%,
1/01/28
1,000,000
1,077,958
Queens
Ballpark
Co.
LLC,
Revenue,
2021
A,
Refunding,
AGMC
Insured,
3%,
1/01/46
10,000,000
7,384,861
Yankee
Stadium
LLC,
Revenue,
2020
A,
Refunding,
AGMC
Insured,
3%,
3/01/36
..
2,500,000
2,201,201
New
York
City
Transitional
Finance
Authority
,
Future
Tax
Secured,
Revenue,
2014
D-1,
5%,
2/01/27
......................
8,740,000
8,882,089
Future
Tax
Secured,
Revenue,
2014
D-1,
5%,
2/01/28
......................
5,000,000
5,080,381
Future
Tax
Secured,
Revenue,
2020
C,
4%,
5/01/37
........................
1,400,000
1,405,487
New
York
Liberty
Development
Corp.
,
Revenue
,
2021
A
,
Refunding
,
0.95
%
,
11/15/27
2,340,000
1,956,800
New
York
State
Dormitory
Authority
,
Revenue,
2009
A,
AGMC
Insured,
5%,
10/01/24
...........................
155,000
155,237
Northwell
Health
Obligated
Group,
Revenue,
2015
A,
Refunding,
5%,
5/01/29
....
10,000,000
10,388,562
State
of
New
York
Personal
Income
Tax,
Revenue,
2014
E,
Refunding,
5%,
2/15/30
5,000,000
5,173,276
State
of
New
York
Personal
Income
Tax,
Revenue,
2015
A,
Refunding,
5%,
3/15/28
7,185,000
7,438,605
State
of
New
York
Personal
Income
Tax,
Revenue,
2018
A,
5%,
3/15/32
.........
9,995,000
11,052,243
State
of
New
York
Personal
Income
Tax,
Revenue,
2018
A,
Pre-Refunded,
5%,
3/15/32
........................................................
5,000
5,598
New
York
Transportation
Development
Corp.
,
JFK
International
Air
Terminal
LLC,
Revenue,
2020
A,
Refunding,
5%,
12/01/34
...
450,000
476,303
JFK
International
Air
Terminal
LLC,
Revenue,
2020
A,
Refunding,
5%,
12/01/35
...
400,000
417,945
JFK
International
Air
Terminal
LLC,
Revenue,
2020
A,
Refunding,
5%,
12/01/36
...
200,000
207,335
Port
Authority
of
New
York
&
New
Jersey
,
Revenue,
2018,
5%,
11/01/39
........................................
3,000,000
3,160,582
Revenue,
221,
4%,
7/15/36
..........................................
2,180,000
2,174,019
Revenue,
234,
Refunding,
5.25%,
8/01/42
...............................
2,500,000
2,692,430
Troy
Capital
Resource
Corp.
,
Rensselaer
Polytechnic
Institute,
Revenue,
2020
A,
Refunding,
5%,
9/01/28
......
1,300,000
1,399,226
Rensselaer
Polytechnic
Institute,
Revenue,
2020
A,
Refunding,
5%,
9/01/30
......
2,900,000
3,198,652
Rensselaer
Polytechnic
Institute,
Revenue,
2020
A,
Refunding,
5%,
9/01/34
......
4,175,000
4,504,404
172,068,353
North
Carolina
0.1%
North
Carolina
State
Education
Assistance
Authority
,
Revenue,
Senior
Lien,
2020
A,
5%,
6/01/25
..............................
125,000
128,540
Revenue,
Senior
Lien,
2020
A,
5%,
6/01/26
..............................
300,000
312,810
Revenue,
Senior
Lien,
2020
A,
5%,
6/01/27
..............................
450,000
475,744
Revenue,
Senior
Lien,
2020
A,
5%,
6/01/28
..............................
500,000
535,140
Revenue,
Senior
Lien,
2020
A,
5%,
6/01/29
..............................
350,000
378,896
Revenue,
Senior
Lien,
2020
A,
3.125%,
6/01/39
...........................
410,000
380,881
2,212,011
Franklin
Tax-Free
Trust
Schedule
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)
North
Dakota
0.2%
City
of
Grand
Forks
,
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
12/01/29
..
$
1,600,000
$
1,724,343
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
12/01/30
..
1,600,000
1,741,273
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
12/01/31
..
1,300,000
1,426,100
4,891,716
Ohio
1.4%
Buckeye
Tobacco
Settlement
Financing
Authority
,
Revenue,
Senior
Lien
,
2020
A-2
,
1
,
Refunding
,
4
%
,
6/01/48
.............................................
11,765,000
10,301,776
Ohio
Turnpike
&
Infrastructure
Commission
,
Revenue
,
1998
A
,
Refunding
,
NATL
Insured
,
5.5
%
,
2/15/24
..............................................
3,510,000
3,586,771
Ohio
Water
Development
Authority
,
Revenue,
2019,
5%,
12/01/36
........................................
5,650,000
6,279,037
Water
Pollution
Control
Loan
Fund,
Revenue,
2017
A,
5%,
12/01/31
............
10,000,000
10,943,555
State
of
Ohio
,
Premier
Health
Partners
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
11/15/35
1,000,000
1,038,416
Premier
Health
Partners
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/15/36
905,000
851,070
33,000,625
Oregon
2.6%
City
of
Portland
,
Water
System
,
Revenue,
Second
Lien
,
2013
A
,
Refunding
,
5
%
,
10/01/25
........................................................
5,000,000
5,007,447
Clackamas
County
School
District
No.
12
North
Clackamas
,
GO
,
B
,
5
%
,
6/15/32
....
3,725,000
4,006,493
County
of
Yamhill
,
Linfield
University
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
10/01/35
...
5,240,000
5,486,446
Hillsboro
School
District
No.
1J
,
GO,
2020,
4%,
6/15/36
.............................................
2,605,000
2,653,048
GO,
2020,
4%,
6/15/38
.............................................
4,575,000
4,606,278
Medford
Hospital
Facilities
Authority
,
Asante
Health
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
8/15/34
1,100,000
1,202,377
Asante
Health
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
8/15/35
800,000
867,303
Asante
Health
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
8/15/36
1,300,000
1,398,236
Oregon
State
Facilities
Authority
,
Samaritan
Health
Services,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
10/01/25
.......................................................
425,000
438,028
Samaritan
Health
Services,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
10/01/26
.......................................................
150,000
156,887
Samaritan
Health
Services,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
10/01/28
.......................................................
325,000
346,160
Samaritan
Health
Services,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
10/01/29
.......................................................
600,000
644,802
Samaritan
Health
Services,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
10/01/35
.......................................................
275,000
290,121
Willamette
University,
Revenue,
2021
A,
Refunding,
4%,
10/01/51
.............
2,000,000
1,681,187
Salem
Hospital
Facility
Authority
,
Salem
Health
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
5/15/33
.......
9,440,000
10,242,024
Salem
Health
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
5/15/34
.......
3,780,000
4,085,239
Salem
Health
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
5/15/35
.......
9,010,000
9,658,319
Salem-Keizer
School
District
No.
24J
,
GO
,
2020
C
,
4
%
,
6/15/37
................
5,620,000
5,727,532
c
State
of
Oregon
Housing
&
Community
Services
Department
,
Union
at
Pacific
Highway
LP
,
Revenue
,
144A,
2022
II-1
,
5.5
%
,
12/01/39
............................
2,405,000
2,399,562
60,897,489
Pennsylvania
3.8%
Allegheny
County
Hospital
Development
Authority
,
UPMC
Obligated
Group
,
Revenue
,
2019
A
,
Refunding
,
5
%
,
7/15/34
.......................................
5,000,000
5,455,417
Allentown
Neighborhood
Improvement
Zone
Development
Authority
,
Revenue,
2022,
Refunding,
5%,
5/01/28
.................................
600,000
624,418
Franklin
Tax-Free
Trust
Schedule
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)
Pennsylvania
(continued)
Allentown
Neighborhood
Improvement
Zone
Development
Authority,
(continued)
Revenue,
2022,
Refunding,
5%,
5/01/29
.................................
$
600,000
$
627,226
Revenue,
2022,
Refunding,
5%,
5/01/30
.................................
700,000
734,185
Revenue,
2022,
Refunding,
5%,
5/01/31
.................................
675,000
709,543
City
of
Philadelphia
,
Water
&
Wastewater,
Revenue,
2017
B,
Refunding,
5%,
11/01/31
..............
5,750,000
6,252,041
Water
&
Wastewater,
Revenue,
2020
A,
Refunding,
5%,
11/01/36
..............
1,000,000
1,103,844
Water
&
Wastewater,
Revenue,
2020
A,
Refunding,
5%,
11/01/37
..............
1,500,000
1,649,980
Water
&
Wastewater,
Revenue,
2020
A,
Refunding,
5%,
11/01/38
..............
2,000,000
2,169,166
Water
&
Wastewater,
Revenue,
2022
C,
5%,
6/01/39
.......................
1,860,000
2,027,449
Water
&
Wastewater,
Revenue,
2022
C,
5%,
6/01/40
.......................
3,260,000
3,534,559
Commonwealth
of
Pennsylvania
,
GO,
Second
Series
,
2013
,
5
%
,
10/15/26
.........
13,375,000
13,541,227
Pennsylvania
Economic
Development
Financing
Authority
,
UPMC
Obligated
Group,
Revenue,
2020
A,
5%,
4/15/33
.....................
2,100,000
2,309,392
UPMC
Obligated
Group,
Revenue,
2020
A,
5%,
4/15/34
.....................
1,750,000
1,916,604
UPMC
Obligated
Group,
Revenue,
2020
A,
5%,
4/15/35
.....................
1,450,000
1,576,603
UPMC
Obligated
Group,
Revenue,
2020
A,
4%,
4/15/38
.....................
3,245,000
3,137,262
UPMC
Obligated
Group,
Revenue,
2020
A,
4%,
4/15/39
.....................
3,685,000
3,543,257
b
Waste
Management
Obligated
Group,
Revenue,
2009,
Mandatory
Put,
0.95%,
12/01/26
.......................................................
3,000,000
2,647,888
b
Waste
Management,
Inc.,
Revenue,
2017
A,
Mandatory
Put,
0.58%,
8/01/24
.....
5,500,000
5,223,640
b
Waste
Management,
Inc.,
Revenue,
2021
B,
Refunding,
Mandatory
Put,
1.1%,
11/02/26
.......................................................
6,750,000
6,007,412
Pennsylvania
Higher
Educational
Facilities
Authority
,
Drexel
University,
Revenue,
2020
A,
Refunding,
AGMC
Insured,
5%,
5/01/39
.....
6,950,000
7,439,727
University
of
Pennsylvania
Health
System
Obligated
Group
(The),
Revenue,
2017
A,
4%,
8/15/34
....................................................
5,895,000
5,991,962
Pennsylvania
State
University
(The)
,
Revenue
,
A
,
5
%
,
9/01/30
.................
4,000,000
4,353,460
Philadelphia
Authority
for
Industrial
Development
,
MaST
Community
Charter
School
II,
Revenue,
2020
A,
5%,
8/01/30
............
100,000
103,298
MaST
Community
Charter
School
II,
Revenue,
2020
A,
5%,
8/01/40
............
300,000
301,179
Philadelphia
Gas
Works
Co.
,
Revenue,
15th,
Refunding,
5%,
8/01/30
.................................
2,000,000
2,142,699
Revenue,
15th,
Refunding,
5%,
8/01/31
.................................
4,030,000
4,316,793
Redevelopment
Authority
of
the
City
of
Philadelphia
,
Revenue
,
2021
A
,
BAM
Insured
,
2.799
%
,
9/01/33
...................................................
2,425,000
1,952,015
91,392,246
Rhode
Island
0.1%
State
of
Rhode
Island
,
GO,
2019
C,
4%,
1/15/34
............................................
1,520,000
1,580,050
GO,
2019
C,
4%,
1/15/35
............................................
600,000
620,617
2,200,667
South
Carolina
2.8%
County
of
Richland
,
International
Paper
Co.,
Revenue,
2014
A,
Refunding,
3.875%,
4/01/23
.........
10,000,000
9,994,056
c
Village
at
Sandhill
Improvement
District,
Special
Assessment,
144A,
2021,
Refunding,
3.625%,
11/01/31
.......................................
1,000,000
835,277
South
Carolina
Jobs-Economic
Development
Authority
,
c
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
6,600,000
5,284,022
c
Revenue,
144A,
2021
A-2,
5.3%,
12/01/29
...............................
1,805,000
1,542,639
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
7,400,000
5,906,352
c
Columbia
Portfolio
Obligated
Group,
Revenue,
144A,
2022
A-1,
Zero
Cpn.,
6/01/37
11,000,000
7,211,269
Prisma
Health
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
5/01/33
......
6,000,000
6,374,124
South
Carolina
Public
Service
Authority
,
Revenue,
2020
A,
Refunding,
5%,
12/01/31
..............................
2,355,000
2,584,136
Franklin
Tax-Free
Trust
Schedule
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)
South
Carolina
(continued)
South
Carolina
Public
Service
Authority,
(continued)
Revenue,
2020
A,
Refunding,
5%,
12/01/43
..............................
$
20,280,000
$
20,823,932
Revenue,
2021
A,
Refunding,
5%,
12/01/25
..............................
1,000,000
1,040,618
Revenue,
2021
A,
Refunding,
5%,
12/01/26
..............................
750,000
791,205
c
South
Carolina
State
Housing
Finance
&
Development
Authority
,
Garden
Oaks
LP
,
Revenue
,
144A,
2021
B
,
4
%
,
12/01/24
..................................
3,300,000
3,166,569
65,554,199
South
Dakota
0.1%
County
of
Lincoln
,
Augustana
College
Association
(The)
,
Revenue
,
2021
A
,
Refunding
,
4
%
,
8/01/51
......................................................
1,500,000
1,180,062
South
Dakota
Health
&
Educational
Facilities
Authority
,
Presbyterian
Retirement
Village
of
Rapid
City,
Inc.
,
Revenue
,
2021
,
Refunding
,
3
%
,
9/01/41
..................
1,150,000
863,332
2,043,394
Tennessee
3.1%
Chattanooga
Health
Educational
&
Housing
Facility
Board
,
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-1,
Refunding,
5%,
8/01/31
1,500,000
1,617,905
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-1,
Refunding,
5%,
8/01/34
1,000,000
1,065,249
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-1,
Refunding,
5%,
8/01/35
1,250,000
1,319,926
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-1,
Refunding,
4%,
8/01/36
1,000,000
967,578
b
Tennergy
Corp.
,
Revenue
,
2022
A
,
Mandatory
Put
,
5.5
%
,
12/01/30
..............
21,895,000
23,277,812
b
Tennessee
Energy
Acquisition
Corp.
,
Revenue,
2018,
Mandatory
Put,
4%,
11/01/25
............................
25,935,000
25,919,838
Revenue,
2021
A,
Mandatory
Put,
5%,
11/01/31
...........................
4,795,000
5,023,348
Revenue,
2023
A-1,
Refunding,
Mandatory
Put,
5%,
5/01/28
.................
5,250,000
5,423,462
Tennessee
State
School
Bond
Authority
,
Revenue
,
2015
B
,
5
%
,
11/01/28
.........
8,180,000
8,567,980
73,183,098
Texas
5.6%
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
902,178
City
of
Austin
,
Water
&
Wastewater
System,
Revenue,
2012,
5%,
11/15/27
..................
805,000
806,166
Water
&
Wastewater
System,
Revenue,
2013
A,
Refunding,
5%,
11/15/28
.......
5,000,000
5,018,359
City
of
Dallas
,
Waterworks
&
Sewer
System,
Revenue,
2017,
Refunding,
5%,
10/01/30
........
1,500,000
1,640,911
Waterworks
&
Sewer
System,
Revenue,
2017,
Refunding,
5%,
10/01/31
........
2,500,000
2,731,649
Waterworks
&
Sewer
System,
Revenue,
2017,
Refunding,
5%,
10/01/32
........
1,000,000
1,091,444
City
of
El
Paso
,
GO,
2020
A,
Refunding,
4%,
8/15/35
...................................
1,000,000
1,024,629
GO,
2020
A,
Refunding,
4%,
8/15/36
...................................
1,000,000
1,015,716
City
of
Houston
,
Combined
Utility
System,
Revenue,
First
Lien,
2014
C,
Refunding,
5%,
5/15/24
...
5,000,000
5,109,244
Combined
Utility
System,
Revenue,
First
Lien,
2016
B,
Refunding,
5%,
11/15/36
..
7,800,000
8,258,199
City
of
San
Antonio
,
Electric
&
Gas
Systems
,
Revenue
,
2015
,
Refunding
,
5
%
,
2/01/27
10,415,000
11,004,524
Clifton
Higher
Education
Finance
Corp.
,
Southwestern
University
,
Revenue
,
2022
,
4
%
,
8/15/42
.........................................................
10,535,000
9,910,344
Conroe
Local
Government
Corp.
,
Conroe
Convention
Center
Hotel,
Revenue,
First
Lien,
2021
A,
2.5%,
10/01/31
....
500,000
418,047
Conroe
Convention
Center
Hotel,
Revenue,
Third
Lien,
2021
C,
5%,
10/01/30
....
100,000
112,746
Conroe
Convention
Center
Hotel,
Revenue,
Third
Lien,
2021
C,
5%,
10/01/31
....
60,000
68,198
County
of
Harris
,
Toll
Road,
Revenue,
Senior
Lien,
2018
A,
Refunding,
5%,
8/15/32
.............
2,500,000
2,753,471
Toll
Road,
Revenue,
Senior
Lien,
2018
A,
Refunding,
5%,
8/15/33
.............
2,500,000
2,748,995
Dallas
Fort
Worth
International
Airport
,
Revenue,
2013
D,
Refunding,
5.25%,
11/01/27
............................
5,000,000
5,068,631
Franklin
Tax-Free
Trust
Schedule
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)
Texas
(continued)
Dallas
Fort
Worth
International
Airport,
(continued)
Revenue,
2013
D,
Refunding,
5.25%,
11/01/28
............................
$
2,100,000
$
2,128,491
Ector
County
Hospital
District
,
GO,
2020,
Refunding,
5%,
9/15/29
.....................................
800,000
844,150
GO,
2020,
Refunding,
5%,
9/15/30
.....................................
745,000
792,041
GO,
2020,
Refunding,
5%,
9/15/31
.....................................
450,000
475,494
GO,
2020,
Refunding,
5%,
9/15/32
.....................................
600,000
633,309
GO,
2020,
Refunding,
5%,
9/15/33
.....................................
650,000
684,337
GO,
2020,
Refunding,
4%,
9/15/34
.....................................
650,000
634,347
GO,
2020,
Refunding,
4%,
9/15/35
.....................................
700,000
666,378
Kaufman
County
Fresh
Water
Supply
District
No.
1-D
,
GO,
2021,
2%,
9/01/28
.............................................
155,000
133,592
GO,
2021,
2%,
9/01/29
.............................................
155,000
131,304
Lake
Houston
Redevelopment
Authority
,
City
of
Houston
Reinvestment
Zone
No.
10,
Revenue,
2021,
Refunding,
3%,
9/01/34
200,000
172,460
City
of
Houston
Reinvestment
Zone
No.
10,
Revenue,
2021,
Refunding,
4%,
9/01/35
225,000
212,188
City
of
Houston
Reinvestment
Zone
No.
10,
Revenue,
2021,
Refunding,
4%,
9/01/36
250,000
231,966
c
Lakeside
Place
PFC
,
Torrey
Chase
Apartments
LP
,
Revenue
,
144A,
2021
,
3.48
%
,
12/15/39
........................................................
3,975,000
2,969,245
Lower
Colorado
River
Authority
,
LCRA
Transmission
Services
Corp.,
Revenue,
2021,
Refunding,
5%,
5/15/27
.....
2,000,000
2,161,676
LCRA
Transmission
Services
Corp.,
Revenue,
2021,
Refunding,
5%,
5/15/29
.....
2,000,000
2,233,626
North
Texas
Tollway
Authority
,
North
Texas
Tollway
System
,
Revenue,
First
Tier
,
A
,
Refunding
,
4
%
,
1/01/33
.............................................
5,000,000
5,099,441
Northwest
Independent
School
District
,
GO
,
2015
A
,
Pre-Refunded
,
PSF
Guaranty
,
5
%
,
2/15/28
.........................................................
4,815,000
4,977,731
c
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
A-1
,
4.5
%
,
12/01/37
...........
12,000,000
9,549,493
San
Antonio
Education
Facilities
Corp.
,
University
of
the
Incarnate
Word,
Revenue,
2021
A,
Refunding,
4%,
4/01/37
......
635,000
583,757
University
of
the
Incarnate
Word,
Revenue,
2021
A,
Refunding,
4%,
4/01/39
......
2,435,000
2,189,559
University
of
the
Incarnate
Word,
Revenue,
2021
A,
Refunding,
4%,
4/01/40
......
2,000,000
1,775,105
San
Antonio
Water
System
,
Revenue,
Junior
Lien,
2014
A,
Refunding,
5%,
5/15/24
......................
1,500,000
1,519,688
Revenue,
Junior
Lien,
2014
A,
Refunding,
5%,
5/15/26
......................
2,200,000
2,228,027
Revenue,
Junior
Lien,
2014
A,
Refunding,
5%,
5/15/28
......................
2,000,000
2,025,479
Revenue,
Junior
Lien,
2014
A,
Refunding,
5%,
5/15/29
......................
1,000,000
1,012,739
Texas
Municipal
Gas
Acquisition
&
Supply
Corp.
III
,
Revenue,
2021,
Refunding,
5%,
12/15/27
................................
1,000,000
1,027,905
Revenue,
2021,
Refunding,
5%,
12/15/30
................................
10,000,000
10,432,362
Texas
Water
Development
Board
,
State
Water
Implementation
Revenue
Fund
for
Texas
,
Revenue
,
2017
A
,
5
%
,
10/15/31
.................................
12,585,000
13,817,063
c
Town
of
Little
Elm
,
Valencia
Public
Improvement
District
,
Special
Assessment
,
144A,
2021
,
2.875
%
,
9/01/31
..............................................
281,000
230,781
Westside
211
Special
Improvement
District
,
GO,
Sub.
Lien,
2021,
2%,
8/15/29
.....................................
290,000
253,092
GO,
Sub.
Lien,
2021,
2.25%,
8/15/31
...................................
300,000
255,367
GO,
Sub.
Lien,
2021,
3%,
8/15/33
.....................................
315,000
280,260
GO,
Sub.
Lien,
2021,
3%,
8/15/35
.....................................
335,000
285,485
GO,
Sub.
Lien,
2021,
3%,
8/15/37
.....................................
355,000
286,301
132,617,690
Utah
0.1%
City
of
Lehi
,
Sales
Tax
,
Revenue
,
2021
,
AGMC
Insured
,
4
%
,
2/01/48
.............
3,000,000
2,716,767
Utah
Infrastructure
Agency
,
Revenue
,
2021
,
4
%
,
10/15/35
.....................
400,000
352,478
3,069,245
Franklin
Tax-Free
Trust
Schedule
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)
Virginia
1.6%
City
of
Richmond
,
Public
Utility
,
Revenue
,
2016
A
,
Refunding
,
5
%
,
1/15/32
........
$
10,000,000
$
10,512,703
Virginia
Public
Building
Authority
,
Revenue,
B,
4%,
8/01/29
............................................
9,605,000
9,903,919
Revenue,
B,
Pre-Refunded,
4%,
8/01/29
................................
3,530,000
3,648,681
Virginia
Public
School
Authority
,
Revenue
,
2014
C
,
5
%
,
8/01/27
.................
4,460,000
4,573,111
Virginia
Small
Business
Financing
Authority
,
Elizabeth
River
Crossings
OpCo
LLC,
Revenue,
Senior
Lien,
2022,
Refunding,
4%,
1/01/32
........................................................
2,500,000
2,482,786
Elizabeth
River
Crossings
OpCo
LLC,
Revenue,
Senior
Lien,
2022,
Refunding,
4%,
7/01/32
........................................................
2,000,000
1,984,304
National
Senior
Communities,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
1/01/35
....................................................
3,000,000
3,196,667
National
Senior
Communities,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
1/01/36
....................................................
3,000,000
2,850,872
39,153,043
Washington
4.5%
City
of
Seattle
,
Drainage
&
Wastewater,
Revenue,
2014,
Refunding,
5%,
5/01/24
..............
5,230,000
5,343,427
Drainage
&
Wastewater,
Revenue,
2014,
Refunding,
5%,
5/01/26
..............
2,995,000
3,059,610
Municipal
Light
&
Power,
Revenue,
2017
C,
Refunding,
4%,
9/01/34
............
5,300,000
5,485,014
County
of
King
,
Sewer,
Revenue,
2014
B,
Refunding,
5%,
7/01/25
.........................
1,200,000
1,228,841
Sewer,
Revenue,
2014
B,
Refunding,
5%,
7/01/26
.........................
1,200,000
1,228,840
Sewer,
Revenue,
2014
B,
Refunding,
5%,
7/01/27
.........................
1,900,000
1,946,414
Sewer,
Revenue,
2014
B,
Refunding,
5%,
7/01/28
.........................
3,050,000
3,124,507
Energy
Northwest
,
Bonneville
Power
Administration,
Revenue,
2019
A,
Refunding,
5%,
7/01/35
......
7,000,000
7,767,645
Bonneville
Power
Administration,
Revenue,
A,
Refunding,
5%,
7/01/24
..........
1,250,000
1,277,905
Everett
Housing
Authority
,
Revenue
,
2022
,
Refunding
,
4
%
,
7/01/37
..............
9,420,000
9,022,249
Port
of
Seattle
,
Revenue
,
2018
A
,
5
%
,
5/01/38
.............................
5,000,000
5,123,460
Seattle
Housing
Authority
,
Yesler
Block
7.3
LLLP
,
Revenue
,
2021
,
1
%
,
6/01/25
.....
7,225,000
6,806,058
State
of
Washington
,
GO,
2017
D,
5%,
2/01/31
............................................
5,480,000
5,909,647
GO,
2017
D,
5%,
2/01/32
............................................
10,000,000
10,757,144
Washington
Health
Care
Facilities
Authority
,
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-1,
Refunding,
5%,
8/01/35
1,370,000
1,446,638
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/30
2,800,000
3,029,143
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/31
3,700,000
3,990,834
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/32
1,500,000
1,613,684
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/33
1,395,000
1,495,367
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/34
1,225,000
1,304,931
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/35
1,250,000
1,319,926
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/36
5,125,000
5,361,846
Fred
Hutchinson
Cancer
Center
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
9/01/38
........................................................
1,000,000
1,047,028
Fred
Hutchinson
Cancer
Center
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
9/01/39
........................................................
1,000,000
1,042,911
Fred
Hutchinson
Cancer
Center
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
9/01/40
........................................................
1,000,000
1,036,326
c
Fred
Hutchinson
Cancer
Center
Obligated
Group,
Revenue,
144A,
2021,
3%,
12/01/35
.......................................................
440,000
387,297
Overlake
Hospital
Medical
Center
Obligated
Group,
Revenue,
B,
Refunding,
5%,
7/01/30
........................................................
1,000,000
1,059,629
Overlake
Hospital
Medical
Center
Obligated
Group,
Revenue,
B,
Refunding,
5%,
7/01/31
........................................................
1,925,000
2,036,962
Franklin
Tax-Free
Trust
Schedule
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)
Washington
(continued)
Washington
Health
Care
Facilities
Authority,
(continued)
Virginia
Mason
Medical
Center
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
8/15/31
........................................................
$
2,250,000
$
2,351,530
Virginia
Mason
Medical
Center
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
8/15/32
........................................................
1,605,000
1,669,610
Virginia
Mason
Medical
Center
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
8/15/35
........................................................
2,400,000
2,442,273
Washington
State
Housing
Finance
Commission
,
Revenue,
2021-1,
A,
3.5%,
12/20/35
...................................
6,822,748
6,248,493
c
Madison
at
Rivers
Edge
Apartments
LLC,
Revenue,
144A,
2021
B,
5.3%,
1/01/30
.
1,300,000
1,119,727
108,084,916
Wisconsin
2.4%
City
of
Milwaukee
,
Sewerage
System
,
Revenue
,
2021
S-2
,
Refunding
,
3
%
,
6/01/46
..
4,600,000
3,441,243
Public
Finance
Authority
,
2017
IAVF
Rubix
LLC,
Revenue,
2020
A,
3.5%,
12/01/32
....................
1,405,000
1,194,317
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020
A,
4%,
11/15/37
.......................................................
600,000
529,422
Appalachian
Regional
Healthcare
System
Obligated
Group,
Revenue,
2021
A,
4%,
7/01/46
........................................................
1,100,000
894,026
Coral
Academy
of
Science
Las
Vegas,
Revenue,
2021
A,
4%,
7/01/29
..........
285,000
276,842
Coral
Academy
of
Science
Las
Vegas,
Revenue,
2021
A,
4%,
7/01/30
..........
200,000
193,301
Coral
Academy
of
Science
Las
Vegas,
Revenue,
2021
A,
4%,
7/01/31
..........
200,000
192,114
EMU
Campus
Living
LLC,
Revenue,
2022
A-1,
BAM
Insured,
5.375%,
7/01/47
....
7,000,000
7,507,593
c
Gulf
Coast
Portfolio
Obligated
Group,
Revenue,
144A,
2021,
5.25%,
12/01/23
....
13,400,000
13,400,000
c
Hope
Housing
Foundation
Obligated
Group,
Revenue,
144A,
2022
A,
3.8%,
12/01/37
5,600,000
4,543,010
c
Hope
Housing
Foundation
Obligated
Group,
Revenue,
144A,
2022
B,
5.75%,
12/01/27
.......................................................
1,775,000
1,676,558
Renown
Regional
Medical
Center,
Revenue,
2020
A,
Refunding,
4%,
6/01/35
.....
2,100,000
2,096,486
United
Methodist
Retirement
Homes,
Inc.
Obligated
Group
(The),
Revenue,
2021
A,
Refunding,
4%,
10/01/27
...........................................
195,000
188,958
United
Methodist
Retirement
Homes,
Inc.
Obligated
Group
(The),
Revenue,
2021
A,
Refunding,
4%,
10/01/28
...........................................
250,000
240,657
United
Methodist
Retirement
Homes,
Inc.
Obligated
Group
(The),
Revenue,
2021
A,
Refunding,
4%,
10/01/29
...........................................
320,000
305,342
United
Methodist
Retirement
Homes,
Inc.
Obligated
Group
(The),
Revenue,
2021
A,
Refunding,
4%,
10/01/30
...........................................
265,000
250,523
b,c
WV
2020
Holdings
LLC
Obligated
Group,
Revenue,
144A,
2020
A-1,
Mandatory
Put,
3.5%,
12/01/35
..................................................
9,700,000
7,846,952
Wisconsin
Department
of
Transportation
,
Revenue
,
2017-2
,
Refunding
,
5
%
,
7/01/31
.
5,000,000
5,491,790
Wisconsin
Health
&
Educational
Facilities
Authority
,
Marshfield
Clinic
Health
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
AGMC
Insured,
4%,
2/15/34
........................................
600,000
614,220
Marshfield
Clinic
Health
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
AGMC
Insured,
4%,
2/15/35
........................................
1,000,000
1,016,697
Marshfield
Clinic
Health
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
AGMC
Insured,
4%,
2/15/36
........................................
600,000
604,603
Marshfield
Clinic
Health
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
AGMC
Insured,
4%,
2/15/37
........................................
600,000
600,874
Oakwood
Lutheran
Senior
Ministries
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
1/01/28
....................................................
375,000
353,829
Oakwood
Lutheran
Senior
Ministries
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
1/01/29
....................................................
390,000
362,605
Oakwood
Lutheran
Senior
Ministries
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
1/01/30
....................................................
405,000
371,420
Oakwood
Lutheran
Senior
Ministries
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
1/01/37
....................................................
1,460,000
1,203,747
Franklin
Tax-Free
Trust
Schedule
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)
Wisconsin
(continued)
Wisconsin
Health
&
Educational
Facilities
Authority,
(continued)
Wisconsin
Masonic
Home
Obligated
Group,
Revenue,
2021
A,
4%,
8/15/41
......
$
1,650,000
$
1,373,729
56,770,858
U.S.
Territories
0.7%
District
of
Columbia
0.6%
District
of
Columbia
,
Income
Tax
,
Revenue
,
2019
A
,
5
%
,
3/01/33
................
3,000,000
3,429,315
Washington
Metropolitan
Area
Transit
Authority
,
Revenue,
2017
B,
5%,
7/01/31
........................................
5,000,000
5,412,836
Revenue,
2017
B,
5%,
7/01/32
........................................
5,750,000
6,220,459
15,062,610
Puerto
Rico
0.1%
HTA
HRRB
Custodial
Trust
,
Revenue
,
2007
CC
,
5.5
%
,
7/01/29
.................
1,000,000
1,034,367
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
474,876
Hospital
Auxilio
Mutuo
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
7/01/30
..
550,000
601,366
2,110,609
Total
U.S.
Territories
....................................................................
17,173,219
Total
Municipal
Bonds
(Cost
$2,396,750,594)
...................................
2,287,055,192
Total
Long
Term
Investments
(Cost
$2,454,353,907)
.............................
2,336,525,042
a
a
a
a
a
Short
Term
Investments
1.2%
Municipal
Bonds
1.2%
Maryland
0.1%
f
County
of
Montgomery
,
GO
,
2017
E
,
SPA
US
Bank
NA
,
Daily
VRDN
and
Put
,
2.4
%
,
11/01/37
........................................................
2,100,000
2,100,000
New
York
0.6%
f
City
of
New
York
,
GO
,
2020
B-3
,
Daily
VRDN
and
Put
,
3.6
%
,
10/01/46
...........
1,600,000
1,600,000
f
New
York
City
Municipal
Water
Finance
Authority
,
Water
&
Sewer
System,
Revenue,
2014
AA-1,
SPA
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
2.45%,
6/15/50
......................................
1,400,000
1,400,000
Water
&
Sewer
System,
Revenue,
BB-1A,
SPA
State
Street
Bank
&
Trust
Co.,
Daily
VRDN
and
Put,
2.6%,
6/15/49
.......................................
10,500,000
10,500,000
13,500,000
North
Carolina
0.5%
f
Charlotte-Mecklenburg
Hospital
Authority
(The)
,
Atrium
Health
Obligated
Group,
Revenue,
2007
C,
Refunding,
SPA
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
2.45%,
1/15/37
..........................
7,185,000
7,185,000
Atrium
Health
Obligated
Group,
Revenue,
2018
G,
SPA
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
2.45%,
1/15/48
.................................
4,700,000
4,700,000
Franklin
Tax-Free
Trust
Schedule
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
See
Abbreviations
on
page
178.
Short
Term
Investments
(continued)
a
a
Principal
Amount
a
Value
Municipal
Bonds
(continued)
North
Carolina
(continued)
f
Charlotte-Mecklenburg
Hospital
Authority
(The),
(continued)
Atrium
Health
Obligated
Group,
Revenue,
2018
H,
SPA
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
2.45%,
1/15/48
.................................
$
500,000
$
500,000
12,385,000
Total
Municipal
Bonds
(Cost
$27,985,000)
......................................
27,985,000
Total
Short
Term
Investments
(Cost
$27,985,000
)
................................
27,985,000
a
Total
Investments
(Cost
$2,482,338,907)
99.2%
..................................
$2,364,510,042
Other
Assets,
less
Liabilities
0.8%
.............................................
20,302,849
Net
Assets
100.0%
...........................................................
$2,384,812,891
a
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
b
The
maturity
date
shown
represents
the
mandatory
put
date.
c
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,
2023,
the
aggregate
value
of
these
securities
was
$137,599,475,
representing
5.8%
of
net
assets.
d
The
coupon
rate
shown
represents
the
rate
at
period
end.
e
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).
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
Highlights
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
58
a
Year
Ended
February
28,
Year
Ended
February
28,
2019
b
2023
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.34
$10.56
$10.59
$10.35
$10.27
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.15
0.07
0.11
0.15
0.07
Net
realized
and
unrealized
gains
(losses)
...........
(0.33)
(0.22)
(0.03)
0.25
0.08
Total
from
investment
operations
....................
(0.18)
(0.15)
0.08
0.40
0.15
Less
distributions
from:
Net
investment
income
..........................
(0.13)
(0.07)
(0.11)
(0.16)
(0.07)
Net
asset
value,
end
of
year
.......................
$10.03
$10.34
$10.56
$10.59
$10.35
Total
return
e
...................................
(1.75)%
(1.39)%
0.75%
3.88%
1.49%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
......
0.86%
0.80%
0.81%
0.81%
0.83%
Expenses
net
of
waiver
and
payments
by
affiliates
g
......
0.65%
0.65%
0.64%
0.64%
0.65%
Net
investment
income
...........................
1.51%
0.70%
1.01%
1.42%
1.23%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$385,372
$345,670
$294,622
$158,939
$103,864
Portfolio
turnover
rate
............................
29.88%
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)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
59
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.35
$10.57
$10.60
$10.36
$10.29
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.16
0.09
0.12
0.16
0.14
Net
realized
and
unrealized
gains
(losses)
...........
(0.33)
(0.22)
(0.03)
0.25
0.08
Total
from
investment
operations
....................
(0.17)
(0.13)
0.09
0.41
0.22
Less
distributions
from:
Net
investment
income
..........................
(0.14)
(0.09)
(0.12)
(0.17)
(0.15)
Net
asset
value,
end
of
year
.......................
$10.04
$10.35
$10.57
$10.60
$10.36
Total
return
d
...................................
(1.65)%
(1.29)%
0.85%
3.99%
2.11%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.75%
0.70%
0.71%
0.71%
0.73%
Expenses
net
of
waiver
and
payments
by
affiliates
e
......
0.55%
0.55%
0.55%
0.54%
0.55%
Net
investment
income
...........................
1.55%
0.81%
1.14%
1.52%
1.33%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$305,208
$413,869
$468,057
$518,898
$582,767
Portfolio
turnover
rate
............................
29.88%
33.22%
19.85%
10.10%
64.94%
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
Limited-Term
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,
2023
2022
2021
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.34
$10.56
$10.59
$10.35
$10.28
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.18
0.10
0.14
0.18
0.16
Net
realized
and
unrealized
gains
(losses)
...........
(0.33)
(0.22)
(0.03)
0.25
0.07
Total
from
investment
operations
....................
(0.15)
(0.12)
0.11
0.43
0.23
Less
distributions
from:
Net
investment
income
..........................
(0.16)
(0.10)
(0.14)
(0.19)
(0.16)
Net
asset
value,
end
of
year
.......................
$10.03
$10.34
$10.56
$10.59
$10.35
Total
return
....................................
(1.48)%
(1.12)%
1.03%
4.18%
2.29%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.58%
0.53%
0.54%
0.54%
0.55%
Expenses
net
of
waiver
and
payments
by
affiliates
d
......
0.37%
0.37%
0.37%
0.36%
0.36%
Net
investment
income
...........................
1.74%
0.98%
1.30%
1.70%
1.52%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$68,248
$86,417
$70,227
$51,952
$47,182
Portfolio
turnover
rate
............................
29.88%
33.22%
19.85%
10.10%
64.94%
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
Federal
Limited-Term
Tax-Free
Income
Fund
(continued)
franklintempleton.com
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accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
61
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.35
$10.57
$10.60
$10.35
$10.29
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.16
0.10
0.13
0.17
0.15
Net
realized
and
unrealized
gains
(losses)
...........
(0.33)
(0.22)
(0.02)
0.27
0.07
Total
from
investment
operations
....................
(0.17)
(0.12)
0.11
0.44
0.22
Less
distributions
from:
Net
investment
income
..........................
(0.15)
(0.10)
(0.14)
(0.19)
(0.16)
Net
asset
value,
end
of
year
.......................
$10.03
$10.35
$10.57
$10.60
$10.35
Total
return
....................................
(1.60)%
(1.05)%
1.00%
4.14%
2.16%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.59%
0.55%
0.56%
0.56%
0.58%
Expenses
net
of
waiver
and
payments
by
affiliates
d
......
0.40%
0.40%
0.40%
0.39%
0.40%
Net
investment
income
...........................
1.63%
0.95%
1.26%
1.67%
1.48%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$220,088
$542,557
$517,221
$291,452
$274,316
Portfolio
turnover
rate
............................
29.88
%
33.22%
19.85%
10.10%
64.94%
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
Schedule
of
Investments,
February
28,
2023
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
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The
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part
of
these
financial
statements.
62
a
a
Shares
a
Value
a
Management
Investment
Companies
3.7%
Capital
Markets
3.7%
a
Franklin
Municipal
Green
Bond
ETF
.....................................
1,550,000
$
36,254,500
Total
Management
Investment
Companies
(Cost
$39,888,825)
....................
36,254,500
Principal
Amount
a
a
a
a
b
Senior
Floating
Rate
Interests
4.2%
Equity
Real
Estate
Investment
Trusts
(REITs)
1.1%
c,d
Centennial
Gardens
LP
,
Delayed
Draw
Term
Loan
,
5.579
%
,
(
1-month
USD
LIBOR
+
1.55
%
),
1/08/24
...................................................
$
10,901,352
11,231,563
Real
Estate
Management
&
Development
3.1%
d
Baytown
Leased
Housing
Associates
II
LP
,
Project
Term
Loan
,
6.59
%
,
(
1-month
USD
LIBOR
+
2.25
%
),
8/01/40
............................................
25,110,000
25,774,551
c,d
TBG
Hillcrest
Senior
II
LP
,
Delayed
Draw
Term
Loan
,
5.579
%
,
(
1-month
USD
LIBOR
+
1.55
%
),
1/01/38
...................................................
3,965,574
4,084,189
29,858,740
a
a
a
a
a
Total
Senior
Floating
Rate
Interests
(Cost
$39,976,926)
..........................
41,090,303
Municipal
Bonds
89.7%
Alabama
7.4%
Black
Belt
Energy
Gas
District
,
e
Revenue,
2019
A-1,
Mandatory
Put,
4%,
12/01/25
.........................
11,675,000
11,685,987
Revenue,
2021
A,
Refunding,
4%,
6/01/23
...............................
400,000
399,889
Revenue,
2021
A,
Refunding,
4%,
6/01/24
...............................
400,000
399,226
e
Revenue,
2021
C-1,
Mandatory
Put,
4%,
12/01/26
.........................
10,000,000
9,949,979
e
Revenue,
2022
C-1,
Mandatory
Put,
5.25%,
6/01/29
........................
4,285,000
4,524,242
e
Revenue,
2022
E,
Mandatory
Put,
5%,
6/01/28
............................
4,000,000
4,199,216
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
3,774,884
Alabama
Power
Co.,
Revenue,
2008,
Mandatory
Put,
2.9%,
12/12/23
...........
7,550,000
7,495,489
e
Southeast
Alabama
Gas
Supply
District
(The)
,
Revenue
,
2018
A
,
Mandatory
Put
,
4
%
,
6/01/24
.........................................................
10,895,000
10,902,138
Southeast
Energy
Authority
A
Cooperative
District
,
Revenue,
2021
A,
4%,
10/01/23
.......................................
450,000
449,236
Revenue,
2021
A,
4%,
10/01/24
.......................................
725,000
720,670
e
Revenue,
2022
B-1,
Mandatory
Put,
5%,
8/01/28
..........................
14,560,000
15,012,446
Special
Care
Facilities
Financing
Authority
of
the
City
of
Pell
City
Alabama
,
Noland
Obligated
Group,
Revenue,
2021
A,
Refunding,
5%,
12/01/24
...........
1,500,000
1,514,961
Noland
Obligated
Group,
Revenue,
2021
A,
Refunding,
5%,
12/01/26
...........
1,030,000
1,058,453
72,086,816
Alaska
1.1%
Borough
of
Matanuska-Susitna
,
State
of
Alaska
Department
of
Administration
,
Revenue
,
2015
,
Refunding
,
5.25
%
,
9/01/29
..............................
10,000,000
10,409,068
Arizona
2.0%
Arizona
Industrial
Development
Authority
,
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2020
A,
4%,
11/01/24
.......................................................
1,000,000
1,002,594
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2020
A,
4%,
11/01/25
.......................................................
1,000,000
1,003,502
KIPP
New
York,
Inc.
Gerard
Facility,
Revenue,
2021
C,
1.8%,
7/01/24
..........
450,000
426,106
e
Maricopa
County
Industrial
Development
Authority
,
HonorHealth
Obligated
Group
,
Revenue
,
2019
C
,
Mandatory
Put
,
4.22
%
,
(
SIFMA
Municipal
Swap
Index
+
0.8
%
),
9/01/24
.........................................................
17,000,000
16,959,039
19,391,241
Franklin
Tax-Free
Trust
Schedule
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
63
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
5.1%
California
Community
Choice
Financing
Authority
,
Revenue,
2021
B-1,
4%,
8/01/25
......................................
$
535,000
$
535,630
Revenue,
2021
B-1,
4%,
2/01/26
......................................
850,000
851,361
Revenue,
2021
B-1,
4%,
8/01/26
......................................
325,000
325,848
Revenue,
2021
B-1,
4%,
8/01/27
......................................
400,000
402,230
Revenue,
2021
B-1,
4%,
2/01/28
......................................
375,000
377,909
Revenue,
2021
B-1,
4%,
8/01/28
......................................
470,000
474,574
e
Revenue,
2023
C,
Mandatory
Put,
5.25%,
10/01/31
........................
4,245,000
4,420,072
f
California
Community
Housing
Agency
,
Aster
Apartments
,
Revenue,
Junior
Lien
,
144A,
2021
A-2
,
4
%
,
2/01/43
..............................................
3,090,000
2,572,650
California
County
Tobacco
Securitization
Agency
,
Revenue,
Senior
Lien
,
2020
A
,
Refunding
,
4
%
,
6/01/23
.............................................
400,000
400,545
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
12,884,867
e,f
California
Infrastructure
&
Economic
Development
Bank
,
DesertXpress
Enterprises
LLC
,
Revenue
,
144A,
2020
A
,
Mandatory
Put
,
3.65
%
,
1/31/24
................
7,500,000
7,472,540
e,f
California
Municipal
Finance
Authority
,
Farmdale
NOHO
LP
,
Revenue
,
144A,
2022
A
,
Mandatory
Put
,
4.5
%
,
6/30/23
........................................
13,060,000
13,063,632
California
Statewide
Communities
Development
Authority
,
e
Southern
California
Edison
Co.,
Revenue,
D,
Refunding,
Mandatory
Put,
2.625%,
12/01/23
.......................................................
3,000,000
2,957,573
Viamonte
Senior
Living
1,
Inc.,
Revenue,
2018
B-3,
California
Mortgage
Insured,
3%,
7/01/27
........................................................
3,500,000
3,500,404
50,239,835
Colorado
1.7%
Colorado
Health
Facilities
Authority
,
CommonSpirit
Health
Obligated
Group
,
Revenue
,
2022
A
,
5
%
,
11/01/29
...............................................
900,000
982,442
Fort
Carson
Family
Housing
LLC
,
Revenue
,
1999
,
NATL
Insured
,
7.86
%
,
11/15/29
..
13,335,000
14,503,146
Regional
Transportation
District
,
Denver
Transit
Partners
LLC,
Revenue,
2020
A,
Refunding,
5%,
1/15/24
........
400,000
402,523
Denver
Transit
Partners
LLC,
Revenue,
2020
A,
Refunding,
5%,
7/15/24
........
300,000
303,090
Denver
Transit
Partners
LLC,
Revenue,
2020
A,
Refunding,
5%,
1/15/25
........
325,000
329,821
Denver
Transit
Partners
LLC,
Revenue,
2020
A,
Refunding,
5%,
7/15/25
........
400,000
408,632
16,929,654
Connecticut
0.0%
†
Connecticut
State
Health
&
Educational
Facilities
Authority
,
Stamford
Hospital
Obligated
Group
(The),
Revenue,
M,
Refunding,
5%,
7/01/23
...
175,000
175,556
Stamford
Hospital
Obligated
Group
(The),
Revenue,
M,
Refunding,
5%,
7/01/24
...
175,000
177,240
Stamford
Hospital
Obligated
Group
(The),
Revenue,
M,
Refunding,
5%,
7/01/25
...
170,000
174,157
526,953
Delaware
0.5%
e
Delaware
State
Economic
Development
Authority
,
NRG
Energy,
Inc.
,
Revenue
,
2020
A
,
Refunding
,
Mandatory
Put
,
1.25
%
,
10/01/25
..............................
5,000,000
4,510,596
Florida
2.1%
Centre
Lake
Community
Development
District
,
Special
Assessment
,
2021
,
2.75
%
,
5/01/24
.........................................................
215,000
210,541
City
of
Pompano
Beach
,
John
Knox
Village
of
Florida,
Inc.
Obligated
Group
,
Revenue
,
2021
B-2
,
1.45
%
,
1/01/27
............................................
2,000,000
1,755,853
County
of
Escambia
,
Florida
Power
&
Light
Co.
,
Revenue
,
2003
,
Refunding
,
2.6
%
,
6/01/23
.........................................................
5,000,000
4,983,802
Florida
Municipal
Power
Agency
,
All-Requirements
Power
Supply
Project
,
Revenue
,
2017
A
,
Refunding
,
5
%
,
10/01/25
......................................
1,000,000
1,043,675
Jacksonville
Transportation
Authority
,
Revenue,
Senior
Lien,
2020,
5%,
8/01/23
................................
1,720,000
1,731,745
Franklin
Tax-Free
Trust
Schedule
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.
64
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
$
1,847,503
Revenue,
Senior
Lien,
2020,
5%,
8/01/25
................................
1,800,000
1,878,600
Revenue,
Senior
Lien,
2020,
5%,
8/01/26
................................
1,940,000
2,066,472
e,f
Leon
County
Housing
Finance
Authority
,
Revenue
,
144A,
2022
A-2
,
Mandatory
Put
,
6.5
%
,
5/01/25
....................................................
3,375,000
3,234,109
Middleton
Community
Development
District
A
,
Special
Assessment
,
2022
,
5.2
%
,
5/01/27
.........................................................
500,000
502,357
Poitras
East
Community
Development
District
,
Special
Assessment
,
2023
,
4
%
,
5/01/28
300,000
295,040
River
Hall
Community
Development
District
,
Special
Assessment,
2021
A-1,
Refunding,
3%,
5/01/23
.....................
175,000
174,553
Special
Assessment,
2021
A-1,
Refunding,
3%,
5/01/24
.....................
230,000
226,035
Special
Assessment,
2021
A-1,
Refunding,
3%,
5/01/25
.....................
180,000
174,247
Special
Assessment,
2021
A-1,
Refunding,
3%,
5/01/26
.....................
220,000
209,857
20,334,389
Georgia
4.3%
City
of
Atlanta
,
Department
of
Aviation,
Revenue,
2020
A,
Refunding,
5%,
7/01/24
.............
2,500,000
2,559,755
Department
of
Aviation,
Revenue,
2020
A,
Refunding,
5%,
7/01/25
.............
1,500,000
1,561,824
e
Development
Authority
of
Monroe
County
(The)
,
Georgia
Power
Co.
,
Revenue,
First
Series
,
2009
,
Refunding
,
Mandatory
Put
,
1
%
,
8/21/26
......................
2,000,000
1,754,401
e,f
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
1,999,154
Main
Street
Natural
Gas,
Inc.
,
e
Revenue,
2018
A,
Mandatory
Put,
4%,
9/01/23
............................
10,025,000
10,046,179
e
Revenue,
2021
A,
Mandatory
Put,
4%,
9/01/27
............................
3,250,000
3,249,465
Revenue,
2021
C,
4%,
12/01/23
.......................................
725,000
724,983
Revenue,
2021
C,
4%,
12/01/24
.......................................
735,000
732,184
e
Revenue,
2022
A,
Mandatory
Put,
4%,
12/01/29
...........................
4,500,000
4,417,801
e,f
Revenue,
144A,
2022
C,
Mandatory
Put,
4%,
11/01/27
......................
15,000,000
14,265,702
Private
Colleges
&
Universities
Authority
,
Mercer
University,
Revenue,
2021,
Refunding,
5%,
10/01/23
.................
300,000
302,565
Mercer
University,
Revenue,
2021,
Refunding,
5%,
10/01/24
.................
400,000
409,302
Mercer
University,
Revenue,
2021,
Refunding,
5%,
10/01/25
.................
425,000
441,423
42,464,738
Hawaii
1.8%
University
of
Hawaii
,
Revenue,
2020
B,
Refunding,
5%,
10/01/24
..............................
3,440,000
3,534,966
Revenue,
2020
B,
Refunding,
5%,
10/01/25
..............................
3,440,000
3,604,165
Revenue,
2020
B,
Refunding,
5%,
10/01/26
..............................
2,865,000
3,064,097
Revenue,
2020
D,
Refunding,
5%,
10/01/24
..............................
600,000
616,564
Revenue,
2020
D,
Refunding,
5%,
10/01/25
..............................
1,725,000
1,807,321
Revenue,
2020
D,
Refunding,
5%,
10/01/26
..............................
4,360,000
4,662,988
17,290,101
Illinois
8.8%
Chicago
Board
of
Education
,
GO
,
2018
A
,
Refunding
,
AGMC
Insured
,
5
%
,
12/01/23
.
1,000,000
1,010,201
Chicago
Park
District
,
GO,
2020
F-2,
Refunding,
5%,
1/01/25
..................................
350,000
356,606
GO,
2020
F-2,
Refunding,
5%,
1/01/26
..................................
500,000
517,657
GO,
2020
F-2,
Refunding,
5%,
1/01/27
..................................
550,000
577,989
Chicago
Transit
Authority
Capital
Grant
Receipts
,
Revenue
,
2021
,
Refunding
,
5
%
,
6/01/24
.........................................................
1,425,000
1,447,356
City
of
Chicago
,
GO,
2015
C,
Refunding,
5%,
1/01/25
...................................
1,900,000
1,927,074
Franklin
Tax-Free
Trust
Schedule
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
65
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Illinois
(continued)
City
of
Chicago,
(continued)
GO,
2020
A,
Refunding,
5%,
1/01/28
...................................
$
3,100,000
$
3,193,564
City
of
Moline
,
GO,
2021
C,
AGMC
Insured,
0.702%,
12/01/23
...........................
1,175,000
1,136,177
GO,
2021
C,
AGMC
Insured,
1.151%,
12/01/24
...........................
580,000
540,956
GO,
2021
C,
AGMC
Insured,
1.439%,
12/01/25
...........................
925,000
838,346
County
of
Cook
,
Sales
Tax
,
Revenue
,
2021
A
,
Refunding
,
5
%
,
11/15/29
...........
845,000
937,779
Illinois
Finance
Authority
,
Christian
Homes,
Inc.
Obligated
Group,
Revenue,
2021
A,
4%,
5/15/27
.........
2,810,000
2,607,680
e
Field
Museum
of
Natural
History,
Revenue,
2019,
Refunding,
Mandatory
Put,
4.385%,
9/01/25
.................................................
3,695,000
3,686,564
e
OSF
Healthcare
System
Obligated
Group,
Revenue,
2020
B-1,
Refunding,
Mandatory
Put,
5%,
11/15/24
.......................................
1,250,000
1,268,569
Metropolitan
Pier
&
Exposition
Authority
,
Revenue
,
2022
A
,
Refunding
,
3
%
,
6/15/24
..
2,500,000
2,472,825
Railsplitter
Tobacco
Settlement
Authority
,
Revenue
,
2017
,
5
%
,
6/01/26
...........
2,000,000
2,102,321
State
of
Illinois
,
GO,
2010-4,
AGMC
Insured,
6.875%,
7/01/25
............................
750,000
765,073
GO,
2016,
Refunding,
5%,
2/01/25
.....................................
10,000,000
10,203,633
GO,
2016,
Refunding,
5%,
2/01/29
.....................................
750,000
780,178
GO,
2017
C,
5%,
11/01/29
...........................................
2,000,000
2,091,656
GO,
2017
D,
5%,
11/01/27
...........................................
5,025,000
5,266,853
GO,
2018
A,
6%,
5/01/25
............................................
6,000,000
6,261,013
GO,
2018
A,
Refunding,
5%,
10/01/29
..................................
375,000
395,299
GO,
2018
B,
Refunding,
5%,
10/01/31
..................................
625,000
655,168
GO,
2019
B,
5%,
11/01/30
...........................................
375,000
397,408
GO,
2021
A,
5%,
3/01/25
............................................
5,300,000
5,412,587
GO,
2022
B,
Refunding,
5%,
3/01/24
...................................
2,500,000
2,526,269
Sales
Tax,
Revenue,
2021
A,
4%,
6/15/24
...............................
5,000,000
5,013,866
Sales
Tax,
Revenue,
2021
A,
4%,
6/15/27
...............................
1,500,000
1,518,530
Sales
Tax,
Revenue,
Junior
Lien,
2021
C,
Refunding,
5%,
6/15/23
.............
3,000,000
3,013,797
Sales
Tax,
Revenue,
Junior
Lien,
2021
C,
Refunding,
5%,
6/15/24
.............
3,300,000
3,350,166
Sales
Tax,
Revenue,
Junior
Lien,
2021
C,
Refunding,
5%,
6/15/25
.............
2,000,000
2,050,468
University
of
Illinois
,
Auxiliary
Facilities
System
,
Revenue
,
2021
A
,
Refunding
,
3
%
,
4/01/25
.........................................................
11,660,000
11,414,805
f
Upper
Illinois
River
Valley
Development
Authority
,
2018
IAVF
Timber
Oaks
&
Prairie
View
Obligated
Group
,
Revenue
,
144A,
2020
B
,
Refunding
,
4.25
%
,
3/01/23
......
4,000
4,000
85,742,433
Indiana
0.9%
f
City
of
Goshen
,
Green
Oaks
of
Goshen
LLC
,
Revenue
,
144A,
2021
B
,
4.75
%
,
8/01/24
1,560,000
1,477,695
Indiana
Finance
Authority
,
Greencroft
Goshen
Obligated
Group,
Revenue,
2021
B,
Refunding,
3.25%,
11/15/23
195,000
189,348
g
Greencroft
Goshen
Obligated
Group,
Revenue,
2023
A,
Refunding,
4%,
11/15/23
..
1,000,000
995,906
g
Greencroft
Goshen
Obligated
Group,
Revenue,
2023
A,
Refunding,
4%,
11/15/24
..
1,000,000
979,900
g
Greencroft
Goshen
Obligated
Group,
Revenue,
2023
A,
Refunding,
4%,
11/15/25
..
1,000,000
963,771
Indianapolis
Power
&
Light
Co.,
Revenue,
2021
B,
Refunding,
0.65%,
8/01/25
....
4,500,000
4,087,942
8,694,562
Iowa
0.9%
Des
Moines
Independent
Community
School
District
,
Sales
Services
&
Use
Tax
,
Revenue
,
2018
,
AGMC
Insured
,
3
%
,
6/01/29
.............................
9,300,000
9,222,786
Kansas
0.2%
Reno
County
Unified
School
District
No.
308
Hutchinson
,
GO
,
2019
,
Refunding
,
5
%
,
9/01/27
.........................................................
1,575,000
1,708,457
Franklin
Tax-Free
Trust
Schedule
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.
66
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Kentucky
3.6%
County
of
Trimble
,
Louisville
Gas
and
Electric
Co.
,
Revenue
,
2001
A
,
Refunding
,
0.625
%
,
9/01/26
...................................................
$
3,375,000
$
2,989,647
Eastern
Kentucky
University
,
Revenue,
2021
A,
Refunding,
3.25%,
10/01/23
............................
1,080,000
1,077,871
Revenue,
2021
A,
Refunding,
3.5%,
10/01/24
.............................
1,120,000
1,120,135
Revenue,
2021
A,
Refunding,
3.5%,
10/01/25
.............................
1,155,000
1,144,230
Revenue,
2021
A,
Refunding,
4%,
10/01/26
..............................
1,205,000
1,231,349
Revenue,
2021
A,
Refunding,
4%,
10/01/27
..............................
1,255,000
1,293,131
Revenue,
2021
A,
Refunding,
4%,
10/01/28
..............................
1,305,000
1,353,140
e
Kentucky
Public
Energy
Authority
,
Revenue,
2020
A,
Mandatory
Put,
4%,
6/01/26
............................
10,000,000
9,907,497
Revenue,
2022
A-2,
Mandatory
Put,
4.249%,
8/01/30
.......................
14,125,000
13,440,567
f
Louisville/Jefferson
County
Metropolitan
Government
,
PSG
Vesta
Derby
Oaks
LLC
,
Revenue
,
144A,
2022
B
,
6.75
%
,
5/01/25
................................
1,950,000
1,871,764
35,429,331
Louisiana
4.8%
City
of
New
Orleans
,
Sewerage
Service,
Revenue,
2020
B,
5%,
6/01/26
.........................
450,000
473,731
Sewerage
Service,
Revenue,
2020
B,
5%,
6/01/27
.........................
600,000
642,885
Sewerage
Service,
Revenue,
2020
B,
5%,
6/01/28
.........................
550,000
599,103
e
Lake
Charles
Harbor
&
Terminal
District
,
Big
Lake
Fuels
LLC
,
Revenue
,
2021
,
Mandatory
Put
,
1
%
,
12/01/24
.........................................
10,000,000
9,343,776
f
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
...................................
674,000
637,496
Louisiana
Public
Facilities
Authority
,
Loyola
University
New
Orleans,
Revenue,
2021,
Refunding,
5%,
10/01/25
.......
250,000
257,788
e
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2020
B,
Refunding,
Mandatory
Put,
5%,
5/15/25
........................................
7,500,000
7,707,330
Louisiana
Stadium
&
Exposition
District
,
Revenue,
2020,
5%,
7/03/23
.........................................
4,650,000
4,654,595
f
Revenue,
144A,
2022
A,
1.872%,
7/03/23
...............................
3,000,000
2,951,492
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
16,625,694
e
State
of
Louisiana
,
Gasoline
&
Fuels
Tax
,
Revenue,
Second
Lien
,
2022
A
,
Refunding
,
Mandatory
Put
,
3.685
%
,
(
SOFR
+
0.5
%
),
5/01/26
..........................
2,975,000
2,905,556
46,799,446
Maryland
2.5%
City
of
Baltimore
,
GO
,
2017
B
,
Refunding
,
5
%
,
10/15/25
......................
5,000,000
5,255,712
City
of
Cumberland
,
GO,
2021,
Refunding,
AGMC
Insured,
5%,
6/01/24
.........................
395,000
403,720
GO,
2021,
Refunding,
AGMC
Insured,
5%,
6/01/25
.........................
455,000
472,573
Maryland
Economic
Development
Corp.
,
Purple
Line
Transit
Partners
LLC
,
Revenue
,
2022
A
,
5
%
,
11/12/28
...............................................
10,000,000
10,203,965
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
5,381,271
State
of
Maryland
,
GO
,
2017
B
,
Refunding
,
5
%
,
8/01/26
......................
30,000
32,107
Town
of
Chestertown
,
Washington
College,
Revenue,
2021
A,
Refunding,
5%,
3/01/26
...............
1,035,000
1,058,443
Washington
College,
Revenue,
2021
A,
Refunding,
5%,
3/01/27
...............
1,215,000
1,252,719
24,060,510
Franklin
Tax-Free
Trust
Schedule
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
67
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Massachusetts
1.6%
e
Massachusetts
Development
Finance
Agency
,
Mass
General
Brigham,
Inc.,
Revenue,
2017
S-4,
Refunding,
Mandatory
Put,
5%,
1/25/24
........................................................
$
5,000,000
$
5,058,088
President
&
Trustees
of
Williams
College,
Revenue,
2011
N,
Mandatory
Put,
0.45%,
7/01/25
........................................................
1,000,000
917,145
Massachusetts
Housing
Finance
Agency
,
Revenue
,
2022
C-3
,
FHA
Insured
,
4
%
,
6/01/26
.........................................................
10,000,000
10,123,316
16,098,549
Michigan
0.9%
Michigan
Finance
Authority
,
Henry
Ford
Health
System
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
5
%
,
11/15/27
.......................................
2,000,000
2,115,786
e
Michigan
Strategic
Fund
,
Consumers
Energy
Co.,
Revenue,
2005,
Mandatory
Put,
0.875%,
10/08/26
......
4,350,000
3,999,968
Waste
Management
of
Michigan,
Inc.,
Revenue,
2001,
Mandatory
Put,
0.58%,
8/01/24
........................................................
3,300,000
3,134,185
9,249,939
Minnesota
3.2%
e
City
of
Columbia
Heights
,
42
Central
LP
,
Revenue
,
2022
A
,
Mandatory
Put
,
2.7
%
,
7/01/24
.........................................................
1,000,000
983,690
e
Dakota
County
Community
Development
Agency
,
Eagan
AH
I
LLLP
,
Revenue
,
2020
,
Mandatory
Put
,
0.35
%
,
6/01/23
.......................................
6,000,000
5,935,549
Farmington
Independent
School
District
No.
192
,
GO
,
2015
C
,
Refunding
,
5
%
,
2/01/24
6,065,000
6,168,549
Minnesota
Higher
Education
Facilities
Authority
,
University
of
St.
Thomas,
Revenue,
2019,
5%,
10/01/26
.....................
1,000,000
1,057,279
University
of
St.
Thomas,
Revenue,
2019,
5%,
10/01/27
.....................
1,000,000
1,074,097
e
Minnesota
Municipal
Gas
Agency
,
Revenue,
2022
A,
Mandatory
Put,
4%,
12/01/27
...........................
8,785,000
8,813,234
Revenue,
2022
B,
Mandatory
Put,
4.049%,
12/01/27
.......................
8,000,000
7,793,879
31,826,277
Mississippi
0.3%
e
Mississippi
Business
Finance
Corp.
,
Waste
Management,
Inc.
,
Revenue
,
2004
,
Mandatory
Put
,
0.7
%
,
9/01/26
........................................
2,500,000
2,204,667
Mississippi
Home
Corp.
,
f
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A-5,
2.75%,
6/01/26
274,913
254,200
Patriot
Services
Group
Pascagoula
Portfolio
II
Obligated
Group,
Revenue,
2021
D-8,
2.9%,
6/01/26
...................................................
72,598
67,452
2,526,319
Missouri
0.6%
Missouri
Development
Finance
Board
,
City
of
Independence,
Revenue,
2021,
Refunding,
5%,
3/01/23
...............
280,000
280,000
City
of
Independence,
Revenue,
2021,
Refunding,
5%,
3/01/24
...............
300,000
303,515
City
of
Independence,
Revenue,
2021,
Refunding,
5%,
3/01/25
...............
500,000
506,141
City
of
Independence,
Revenue,
2021,
Refunding,
5%,
3/01/26
...............
405,000
412,916
City
of
Independence,
Revenue,
2021,
Refunding,
5%,
3/01/27
...............
660,000
678,042
e
St.
Charles
County
Industrial
Development
Authority
,
Hidden
Valley
Housing
Partners
LP
,
Revenue
,
2021
,
Mandatory
Put
,
0.27
%
,
10/01/23
.......................
3,500,000
3,411,352
5,591,966
Nebraska
0.3%
Nebraska
Public
Power
District
,
Revenue
,
2021
C
,
Refunding
,
5
%
,
1/01/24
........
2,500,000
2,534,078
Franklin
Tax-Free
Trust
Schedule
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.
68
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Nevada
0.5%
Las
Vegas
Valley
Water
District
,
GO,
2020
D,
Refunding,
5%,
6/01/24
...................................
$
1,745,000
$
1,784,601
GO,
2020
D,
Refunding,
5%,
6/01/25
...................................
2,750,000
2,867,759
4,652,360
New
Hampshire
0.5%
e
New
Hampshire
Business
Finance
Authority
,
Waste
Management,
Inc.
,
Revenue
,
2018
A
,
Refunding
,
Mandatory
Put
,
3.795
%
,
(
SIFMA
Municipal
Swap
Index
+
0.375
%
),
7/01/24
.........................................................
5,000,000
4,868,226
New
Jersey
9.8%
City
of
Newark
,
GO,
2020
A,
Refunding,
AGMC
Insured,
5%,
10/01/23
......................
1,000,000
1,009,587
GO,
2020
A,
Refunding,
AGMC
Insured,
5%,
10/01/24
......................
1,000,000
1,026,516
County
of
Atlantic
,
GO,
2020,
0.375%,
6/01/23
..........................................
1,730,000
1,713,398
GO,
2020,
0.375%,
6/01/24
..........................................
1,765,000
1,682,944
GO,
2020,
0.375%,
6/01/25
..........................................
1,800,000
1,646,995
County
of
Morris
,
GO
,
2021
,
2
%
,
2/01/26
.................................
4,215,000
4,041,462
County
of
Union
,
GO,
2020,
0.5%,
3/01/23
............................................
5,215,000
5,215,000
GO,
2020,
0.5%,
3/01/24
............................................
5,290,000
5,099,566
Garden
State
Preservation
Trust
,
Revenue
,
2005
A
,
AGMC
Insured
,
5.75
%
,
11/01/28
25,000,000
27,343,265
New
Jersey
Economic
Development
Authority
,
f
Revenue,
144A,
2019,
Refunding,
5.25%,
9/01/27
.........................
6,000,000
6,471,464
New
Jersey
Transit
Corp.,
Revenue,
2022
A,
5%,
11/01/25
...................
1,000,000
1,037,048
e
New
Jersey-American
Water
Co.,
Inc.,
Revenue,
2019
B,
Refunding,
Mandatory
Put,
2.05%,
12/03/29
.................................................
7,500,000
6,499,917
h
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
FRN,
2013
I,
Refunding,
5.02%,
(SIFMA
Municipal
Swap
Index
+
1.6%),
3/01/28
....................
12,170,000
12,170,724
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue,
2006
C,
AMBAC
Insured,
Zero
Cpn.,
12/15/26
....................
10,000,000
8,713,747
Revenue,
2006
C,
BHAC
Insured,
Zero
Cpn.,
12/15/27
......................
11,110,000
9,523,074
Newark
Board
of
Education
,
GO,
2021,
Refunding,
5%,
7/15/23
.....................................
300,000
301,924
GO,
2021,
Refunding,
5%,
7/15/24
.....................................
400,000
408,292
State
of
New
Jersey
,
GO
,
3
%
,
6/01/25
....................................
2,000,000
1,972,473
95,877,396
New
Mexico
0.4%
e
City
of
Farmington
,
Public
Service
Co.
of
New
Mexico
,
Revenue
,
2010
A
,
Refunding
,
Mandatory
Put
,
0.875
%
,
10/01/26
.....................................
4,250,000
3,719,911
New
York
3.9%
County
of
Suffolk
,
GO
,
2018
B
,
AGMC
Insured
,
4
%
,
10/15/28
..................
4,205,000
4,341,798
Metropolitan
Transportation
Authority
,
Revenue
,
2017
A-2
,
Refunding
,
5
%
,
11/15/25
.
3,980,000
4,117,684
New
York
City
Industrial
Development
Agency
,
Queens
Ballpark
Co.
LLC,
Revenue,
2021
A,
Refunding,
AGMC
Insured,
5%,
1/01/24
1,000,000
1,011,741
Queens
Ballpark
Co.
LLC,
Revenue,
2021
A,
Refunding,
AGMC
Insured,
5%,
1/01/25
1,000,000
1,026,894
New
York
Liberty
Development
Corp.
,
Revenue
,
2021
A
,
Refunding
,
0.95
%
,
11/15/27
780,000
652,266
New
York
State
Dormitory
Authority
,
Cornell
University
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
7/01/26
......................................................
5,000,000
5,354,700
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
2,953,089
e
Rochester
Gas
and
Electric
Corp.,
Revenue,
1997
A,
Refunding,
Mandatory
Put,
3%,
7/01/25
........................................................
10,000,000
9,904,197
Franklin
Tax-Free
Trust
Schedule
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
69
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
New
York
(continued)
New
York
State
Housing
Finance
Agency
,
Revenue,
2020
F,
1.1%,
11/01/26
......................................
$
2,860,000
$
2,554,379
e
Revenue,
2022
A-2,
Mandatory
Put,
2.5%,
5/01/27
.........................
3,000,000
2,847,273
New
York
Transportation
Development
Corp.
,
JFK
International
Air
Terminal
LLC,
Revenue,
2020
A,
Refunding,
5%,
12/01/25
...
500,000
514,353
JFK
International
Air
Terminal
LLC,
Revenue,
2020
C,
Refunding,
5%,
12/01/25
...
2,200,000
2,288,187
State
of
New
York
Mortgage
Agency
,
Revenue
,
212
,
2.95
%
,
4/01/25
.............
895,000
878,703
38,445,264
North
Carolina
0.8%
North
Carolina
Capital
Facilities
Finance
Agency
,
Campbell
University,
Inc.,
Revenue,
2021
A,
Refunding,
5%,
10/01/24
..........
1,200,000
1,218,287
Campbell
University,
Inc.,
Revenue,
2021
A,
Refunding,
5%,
10/01/25
..........
1,000,000
1,024,957
Campbell
University,
Inc.,
Revenue,
2021
A,
Refunding,
5%,
10/01/26
..........
850,000
881,506
North
Carolina
State
University
at
Raleigh
,
Revenue,
2018,
Refunding,
5%,
10/01/26
................................
3,000,000
3,208,478
Revenue,
2018,
Refunding,
5%,
10/01/27
................................
1,500,000
1,637,170
7,970,398
North
Dakota
1.2%
Cass
County
Joint
Water
Resource
District
,
GO
,
2021
A
,
Refunding
,
0.48
%
,
5/01/24
.
5,000,000
4,752,530
City
of
Grand
Forks
,
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
12/01/27
..
1,125,000
1,187,068
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
12/01/28
..
1,680,000
1,792,393
City
of
Horace
,
GO,
2021
B,
Refunding,
0.6%,
10/01/23
.................................
1,600,000
1,560,033
GO,
2022
A,
Refunding,
3.25%,
8/01/24
.................................
3,000,000
2,935,084
12,227,108
Ohio
1.2%
e
Ohio
Air
Quality
Development
Authority
,
Duke
Energy
Corp.
,
Revenue
,
2022
A
,
Refunding
,
Mandatory
Put
,
4.25
%
,
6/01/27
...............................
7,500,000
7,457,529
Sycamore
Community
City
School
District
,
GO
,
2020
,
4
%
,
12/01/23
.............
2,560,000
2,575,911
Youngstown
State
University
,
Revenue,
2021,
Refunding,
AGMC
Insured,
4%,
12/15/24
...................
645,000
653,339
Revenue,
2021,
Refunding,
AGMC
Insured,
4%,
12/15/25
...................
580,000
592,977
Revenue,
2021,
Refunding,
AGMC
Insured,
4%,
12/15/26
...................
850,000
877,561
12,157,317
Oklahoma
0.2%
Oklahoma
State
University
,
Revenue
,
2021
A
,
Refunding
,
5
%
,
9/01/23
...........
705,000
711,022
Tulsa
County
Industrial
Authority
,
Tulsa
County
Independent
School
District
No.
11
Owasso
,
Revenue
,
2018
,
5
%
,
9/01/23
..................................
1,170,000
1,179,185
1,890,207
Oregon
0.8%
Deschutes
&
Jefferson
Counties
School
District
No.
2J
Redmond
,
GO
,
2021
,
3
%
,
6/15/25
.........................................................
850,000
849,113
Salem-Keizer
School
District
No.
24J
,
GO
,
2018
,
5
%
,
6/15/25
..................
2,000,000
2,085,114
State
of
Oregon
,
GO
,
2015
B
,
Refunding
,
5
%
,
8/01/27
........................
2,785,000
2,920,521
f
State
of
Oregon
Housing
&
Community
Services
Department
,
Union
at
Pacific
Highway
LP
,
Revenue
,
144A,
2022
II-1
,
5.5
%
,
12/01/25
............................
2,270,000
2,258,954
8,113,702
Franklin
Tax-Free
Trust
Schedule
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.
70
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Pennsylvania
4.3%
Allentown
Neighborhood
Improvement
Zone
Development
Authority
,
Revenue,
2022,
Refunding,
5%,
5/01/24
.................................
$
150,000
$
151,656
Revenue,
2022,
Refunding,
5%,
5/01/25
.................................
500,000
508,935
Revenue,
2022,
Refunding,
5%,
5/01/26
.................................
500,000
513,475
Revenue,
2022,
Refunding,
5%,
5/01/27
.................................
590,000
610,474
e
Bethlehem
Area
School
District
Authority
,
Revenue
,
2021
A
,
Refunding
,
Mandatory
Put
,
3.399
%
,
(
SOFR
+
0.35
%
),
11/01/25
................................
1,990,000
1,933,813
e
Geisinger
Authority
,
Geisinger
Health
System
Obligated
Group
,
Revenue
,
2014
B
,
Refunding
,
Mandatory
Put
,
4.163
%
,
(
1-month
USD
LIBOR
+
1.07
%
),
6/01/24
.....
10,000,000
10,043,377
Lehigh
County
Industrial
Development
Authority
,
PPL
Electric
Utilities
Corp.
,
Revenue
,
2016
B
,
Refunding
,
2.625
%
,
2/15/27
...................................
8,500,000
8,072,496
Pennsylvania
Economic
Development
Financing
Authority
,
UPMC
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
11/15/29
...........
1,230,000
1,328,230
e
Waste
Management,
Inc.,
Revenue,
2021
A,
Mandatory
Put,
3.82%,
6/03/24
.....
6,000,000
5,855,047
e
Waste
Management,
Inc.,
Revenue,
2021
B,
Refunding,
Mandatory
Put,
1.1%,
11/02/26
.......................................................
4,000,000
3,559,948
Philadelphia
Gas
Works
Co.
,
Revenue,
Sixteenth
A,
AGMC
Insured,
5%,
8/01/25
........................
500,000
520,295
Revenue,
Sixteenth
A,
AGMC
Insured,
5%,
8/01/26
........................
600,000
635,511
h
University
of
Pittsburgh-of
the
Commonwealth
System
of
Higher
Education
,
Revenue
,
FRN
,
2019
,
3.78
%
,
(
SIFMA
Municipal
Swap
Index
+
0.36
%
),
2/15/24
...........
7,750,000
7,741,355
Westmoreland
County
Industrial
Development
Authority
,
Excela
Health
Obligated
Group
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
7/01/23
.........................
375,000
374,683
41,849,295
Rhode
Island
0.1%
City
of
Providence
,
GO,
2021
A,
Refunding,
5%,
1/15/24
...................................
500,000
505,672
GO,
2021
A,
Refunding,
5%,
1/15/25
...................................
500,000
513,764
GO,
2021
A,
Refunding,
5%,
1/15/26
...................................
500,000
521,859
1,541,295
South
Carolina
1.7%
e
Columbia
Housing
Authority
,
Columbia
Leased
Housing
Associates
I
LLLP
,
Revenue
,
2022
,
Mandatory
Put
,
2.25
%
,
10/01/25
..................................
9,000,000
8,689,760
f
County
of
Richland
,
Village
at
Sandhill
Improvement
District
,
Special
Assessment
,
144A,
2021
,
Refunding
,
3
%
,
11/01/26
...................................
710,000
648,081
f
South
Carolina
Jobs-Economic
Development
Authority
,
Columbia
Portfolio
Obligated
Group
,
Revenue
,
144A,
2022
A-3
,
6
%
,
6/01/23
............................
1,775,000
1,762,439
South
Carolina
Public
Service
Authority
,
Revenue
,
2021
B
,
5
%
,
12/01/24
..........
1,750,000
1,793,226
f
South
Carolina
State
Housing
Finance
&
Development
Authority
,
Garden
Oaks
LP
,
Revenue
,
144A,
2021
B
,
4
%
,
12/01/24
..................................
1,500,000
1,439,349
e
Spartanburg
Housing
Authority
,
CV
Housing
Partners
LP
,
Revenue
,
2022
,
Mandatory
Put
,
1.05
%
,
8/01/23
................................................
2,000,000
1,961,772
16,294,627
South
Dakota
0.1%
South
Dakota
Health
&
Educational
Facilities
Authority
,
Sanford
Obligated
Group,
Revenue,
2021,
Refunding,
0.744%,
11/01/23
........
710,000
688,580
Sanford
Obligated
Group,
Revenue,
2021,
Refunding,
1.225%,
11/01/24
........
450,000
420,699
1,109,279
Tennessee
3.3%
City
of
Memphis
,
GO,
2018,
5%,
6/01/24
.............................................
6,915,000
7,076,198
GO,
2018,
5%,
6/01/25
.............................................
7,260,000
7,562,845
GO,
2018,
5%,
6/01/26
.............................................
7,625,000
8,111,831
Franklin
Tax-Free
Trust
Schedule
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
71
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Tennessee
(continued)
e
Tennergy
Corp.
,
Revenue
,
2022
A
,
Mandatory
Put
,
5.5
%
,
12/01/30
..............
$
8,010,000
$
8,515,883
Tennessee
Energy
Acquisition
Corp.
,
Revenue,
2021
A,
5%,
11/01/23
.......................................
250,000
251,403
Revenue,
2021
A,
5%,
11/01/24
.......................................
250,000
253,228
Revenue,
2021
A,
5%,
11/01/25
.......................................
350,000
357,422
32,128,810
Texas
2.4%
Central
Texas
Turnpike
System
,
Revenue,
First
Tier
,
2002
A
,
BHAC,
AMBAC
Insured
,
Zero
Cpn.,
8/15/27
.................................................
3,280,000
2,830,569
City
of
Dallas
,
Waterworks
&
Sewer
System
,
Revenue
,
2015
A
,
Refunding
,
5
%
,
10/01/26
........................................................
5,000,000
5,208,293
City
of
Houston
,
Combined
Utility
System
,
Revenue,
First
Lien
,
2018
D
,
Refunding
,
5
%
,
11/15/26
........................................................
1,000,000
1,070,354
City
of
Lubbock
,
GO
,
2018
,
Refunding
,
5
%
,
2/15/25
.........................
5,150,000
5,334,415
Kaufman
County
Fresh
Water
Supply
District
No.
1-D
,
GO,
2021,
2%,
9/01/24
.............................................
140,000
133,411
GO,
2021,
2%,
9/01/25
.............................................
145,000
134,332
GO,
2021,
2%,
9/01/26
.............................................
150,000
135,357
GO,
2021,
2%,
9/01/27
.............................................
155,000
136,696
Texas
Water
Development
Board
,
State
Revolving
Fund
,
Revenue
,
2018
,
5
%
,
8/01/27
4,200,000
4,577,257
e
THF
Public
Facility
Corp.
,
THF
Little
Elm
Leased
Housing
Associates
II
LP
,
Revenue
,
2022
,
Mandatory
Put
,
3.25
%
,
9/01/25
...................................
3,500,000
3,424,025
f
Town
of
Little
Elm
,
Valencia
Public
Improvement
District
,
Special
Assessment
,
144A,
2021
,
2.375
%
,
9/01/26
..............................................
140,000
125,668
Westside
211
Special
Improvement
District
,
GO,
Sub.
Lien,
2021,
2%,
8/15/23
.....................................
255,000
252,555
GO,
Sub.
Lien,
2021,
2%,
8/15/25
.....................................
265,000
248,832
GO,
Sub.
Lien,
2021,
2%,
8/15/27
.....................................
280,000
252,788
23,864,552
Utah
0.6%
City
of
Salt
Lake
City
,
Airport,
Revenue,
2021
A,
5%,
7/01/24
..................................
1,000,000
1,015,788
Airport,
Revenue,
2021
A,
5%,
7/01/26
..................................
3,900,000
4,049,249
Utah
Infrastructure
Agency
,
Revenue
,
2021
,
3
%
,
10/15/23
.....................
475,000
468,708
5,533,745
Virginia
0.3%
Virginia
Small
Business
Financing
Authority
,
Elizabeth
River
Crossings
OpCo
LLC,
Revenue,
Senior
Lien,
2022,
Refunding,
4%,
1/01/29
........................................................
180,000
179,063
Elizabeth
River
Crossings
OpCo
LLC,
Revenue,
Senior
Lien,
2022,
Refunding,
4%,
7/01/29
........................................................
1,750,000
1,741,776
LifeSpire
of
Virginia
Obligated
Group,
Revenue,
2021,
Refunding,
3%,
12/01/23
...
300,000
296,544
LifeSpire
of
Virginia
Obligated
Group,
Revenue,
2021,
Refunding,
3%,
12/01/24
...
220,000
213,679
LifeSpire
of
Virginia
Obligated
Group,
Revenue,
2021,
Refunding,
3%,
12/01/25
...
230,000
219,566
LifeSpire
of
Virginia
Obligated
Group,
Revenue,
2021,
Refunding,
3%,
12/01/26
...
235,000
220,409
2,871,037
Washington
1.3%
Auburn
School
District
No.
408
of
King
&
Pierce
Counties
,
GO,
2018,
5%,
12/01/27
.............................................
1,700,000
1,861,924
GO,
2018,
5%,
12/01/28
.............................................
3,300,000
3,615,859
Spokane
County
School
District
No.
354
Mead
,
GO,
2018,
4%,
12/01/32
.............................................
1,150,000
1,188,749
GO,
2018,
5%,
12/01/33
.............................................
1,500,000
1,621,394
Franklin
Tax-Free
Trust
Schedule
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)
Washington
(continued)
State
of
Washington
,
GO
,
R-2015
D
,
Refunding
,
5
%
,
7/01/28
..................
$
3,985,000
$
4,133,838
f
Washington
Health
Care
Facilities
Authority
,
Fred
Hutchinson
Cancer
Center
Obligated
Group
,
Revenue
,
144A,
2021
,
5
%
,
12/01/31
..............................
280,000
304,475
12,726,239
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
900,561
Wisconsin
0.4%
Public
Finance
Authority
,
2017
IAVF
Rubix
LLC,
Revenue,
2020
A,
2.75%,
12/01/25
...................
470,859
445,356
Coral
Academy
of
Science
Las
Vegas,
Revenue,
2021
A,
4%,
7/01/26
..........
150,000
147,084
United
Methodist
Retirement
Homes,
Inc.
Obligated
Group
(The),
Revenue,
2021
A,
Refunding,
4%,
10/01/25
...........................................
285,000
280,196
United
Methodist
Retirement
Homes,
Inc.
Obligated
Group
(The),
Revenue,
2021
A,
Refunding,
4%,
10/01/26
...........................................
300,000
292,662
f
WV
2020
Holdings
LLC
Obligated
Group,
Revenue,
144A,
2020
B,
4.25%,
6/01/25
1,662,000
1,583,094
Wisconsin
Health
&
Educational
Facilities
Authority
,
Oakwood
Lutheran
Senior
Ministries
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
1/01/24
....................................................
160,000
158,782
Oakwood
Lutheran
Senior
Ministries
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
1/01/26
....................................................
345,000
335,625
Oakwood
Lutheran
Senior
Ministries
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
1/01/27
....................................................
360,000
345,873
3,588,672
Wyoming
0.1%
County
of
Laramie
,
Cheyenne
Regional
Medical
Center,
Revenue,
2021,
Refunding,
4%,
5/01/23
.....
800,000
800,734
Cheyenne
Regional
Medical
Center,
Revenue,
2021,
Refunding,
4%,
5/01/27
.....
550,000
566,708
1,367,442
U.S.
Territories
1.1%
District
of
Columbia
1.0%
District
of
Columbia
,
Income
Tax
,
Revenue
,
2022
C
,
Refunding
,
5
%
,
12/01/27
......
9,150,000
10,038,586
Puerto
Rico
0.1%
Puerto
Rico
Industrial
Tourist
Educational
Medical
&
Environmental
Control
Facilities
Financing
Authority
,
Hospital
Auxilio
Mutuo
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
7/01/23
..
100,000
100,394
Hospital
Auxilio
Mutuo
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
7/01/25
..
195,000
200,074
Hospital
Auxilio
Mutuo
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
7/01/27
..
450,000
474,876
775,344
Total
U.S.
Territories
....................................................................
10,813,930
Total
Municipal
Bonds
(Cost
$910,086,513)
.....................................
878,179,417
Total
Long
Term
Investments
(Cost
$989,952,264)
...............................
955,524,220
a
a
a
a
a
Franklin
Tax-Free
Trust
Schedule
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
See
Abbreviations
on
page
178
.
Short
Term
Investments
1.3%
a
a
Principal
Amount
a
Value
Municipal
Bonds
1.3%
California
0.3%
i
Southern
California
Public
Power
Authority
,
Revenue
,
2020-3
,
Refunding
,
LOC
US
Bank
NA
,
Daily
VRDN
and
Put
,
1.65
%
,
7/01/36
...........................
$
745,000
$
745,000
i
University
of
California
,
Revenue,
2013
AL-1,
Daily
VRDN
and
Put,
1.55%,
5/15/48
..................
800,000
800,000
Revenue,
2013
AL-3,
Refunding,
Daily
VRDN
and
Put,
1.55%,
5/15/48
..........
840,000
840,000
2,385,000
Colorado
0.1%
i
City
&
County
of
Denver
,
COP
,
2008
A-2
,
Refunding
,
SPA
JPMorgan
Chase
Bank
NA
,
Daily
VRDN
and
Put
,
2.5
%
,
12/01/29
................................
600,000
600,000
Georgia
0.4%
i
Development
Authority
of
Monroe
County
(The)
,
Florida
Power
&
Light
Co.
,
Revenue
,
2002
,
Refunding
,
Daily
VRDN
and
Put
,
2.8
%
,
9/01/37
......................
4,000,000
4,000,000
Massachusetts
0.1%
i
Massachusetts
Health
&
Educational
Facilities
Authority
,
President
and
Fellows
of
Harvard
College
,
Revenue
,
R
,
Daily
VRDN
and
Put
,
1.6
%
,
11/01/49
............
1,300,000
1,300,000
Michigan
0.1%
i
University
of
Michigan
,
Revenue
,
2012
D-1
,
Daily
VRDN
and
Put
,
2.55
%
,
12/01/24
..
1,300,000
1,300,000
Minnesota
0.0%
†
i
City
of
Minneapolis
St.
Paul
Housing
&
Redevelopment
Authority
,
Allina
Health
Obligated
Group
,
Revenue
,
B-2
,
LOC
JPMorgan
Chase
Bank
NA
,
Daily
VRDN
and
Put
,
2.45
%
,
11/15/35
...............................................
450,000
450,000
New
York
0.1%
i
Nassau
County
Industrial
Development
Agency
,
Cold
Spring
Harbor
Laboratory
,
Revenue
,
1999
,
Refunding
,
SPA
TD
Bank
NA
,
Daily
VRDN
and
Put
,
2.4
%
,
1/01/34
1,000,000
1,000,000
Oregon
0.2%
i
Oregon
State
Facilities
Authority
,
PeaceHealth
Obligated
Group
,
Revenue
,
2018
A
,
Refunding
,
LOC
US
Bank
NA
,
Daily
VRDN
and
Put
,
2.62
%
,
8/01/34
............
500,000
500,000
i
State
of
Oregon
,
GO
,
2020
M
,
SPA
US
Bank
NA
,
Daily
VRDN
and
Put
,
2.62
%
,
12/01/44
........................................................
1,100,000
1,100,000
1,600,000
Total
Municipal
Bonds
(Cost
$12,635,000)
......................................
12,635,000
Total
Short
Term
Investments
(Cost
$12,635,000
)
................................
12,635,000
a
Total
Investments
(Cost
$1,002,587,264)
98.9%
..................................
$968,159,220
Other
Assets,
less
Liabilities
1.1%
.............................................
10,757,222
Net
Assets
100.0%
...........................................................
$978,916,442
†
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
12
regarding
fair
value
measurements.
d
The
coupon
rate
shown
represents
the
rate
inclusive
of
any
caps
or
floors,
if
applicable,
in
effect
at
period
end.
e
The
maturity
date
shown
represents
the
mandatory
put
date.
Franklin
Tax-Free
Trust
Schedule
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
f
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,
2023,
the
aggregate
value
of
these
securities
was
$64,397,958,
representing
6.6%
of
net
assets.
g
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).
h
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
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
75
a
Year
Ended
February
28,
Year
Ended
February
28,
2019
b
2023
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.05
$10.29
$10.46
$9.93
$9.97
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.38
0.36
0.40
0.39
0.20
Net
realized
and
unrealized
gains
(losses)
...........
(1.40)
(0.24)
(0.19)
0.56
(0.04)
Total
from
investment
operations
....................
(1.02)
0.12
0.21
0.95
0.16
Less
distributions
from:
Net
investment
income
..........................
(0.35)
(0.36)
(0.38)
(0.42)
(0.20)
Net
asset
value,
end
of
year
.......................
$8.68
$10.05
$10.29
$10.46
$9.93
Total
return
e
...................................
(10.15)%
1.07%
2.15%
9.73%
1.68%
Ratios
to
average
net
assets
f
Expenses
g
....................................
0.91%
0.80%
h
0.79%
0.79%
0.81%
Net
investment
income
...........................
4.20%
3.49%
3.97%
3.82%
4.23%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$1,390,633
$1,559,216
$1,177,730
$900,342
$343,683
Portfolio
turnover
rate
............................
23.04%
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.
76
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.04
$10.28
$10.45
$9.92
$9.94
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.39
0.38
0.42
0.40
0.43
Net
realized
and
unrealized
gains
(losses)
...........
(1.39)
(0.24)
(0.20)
0.56
(0.01)
Total
from
investment
operations
....................
(1.00)
0.14
0.22
0.96
0.42
Less
distributions
from:
Net
investment
income
..........................
(0.37)
(0.38)
(0.39)
(0.43)
(0.44)
Net
asset
value,
end
of
year
.......................
$8.67
$10.04
$10.28
$10.45
$9.92
Total
return
d
...................................
(10.02)%
1.22%
2.30%
9.90%
4.33%
Ratios
to
average
net
assets
Expenses
e
....................................
0.75%
0.65%
f
0.65%
0.64%
0.66%
Net
investment
income
...........................
4.35%
3.65%
4.14%
3.97%
4.38%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$2,577,670
$3,518,033
$3,756,501
$4,196,856
$4,174,968
Portfolio
turnover
rate
............................
23.04%
18.70%
38.24%
11.98%
6.16%
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
77
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.24
$10.49
$10.66
$10.12
$10.13
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.34
0.32
0.36
0.36
0.39
Net
realized
and
unrealized
gains
(losses)
...........
(1.42)
(0.25)
(0.19)
0.56
(0.01)
Total
from
investment
operations
....................
(1.08)
0.07
0.17
0.92
0.38
Less
distributions
from:
Net
investment
income
..........................
(0.32)
(0.32)
(0.34)
(0.38)
(0.39)
Net
asset
value,
end
of
year
.......................
$8.84
$10.24
$10.49
$10.66
$10.12
Total
return
d
...................................
(10.52)%
0.54%
1.71%
9.27%
3.77%
Ratios
to
average
net
assets
Expenses
e
....................................
1.29%
1.19%
f
1.19%
1.19%
1.21%
Net
investment
income
...........................
3.71%
3.03%
3.53%
3.42%
3.83%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$175,131
$262,313
$359,050
$488,258
$558,728
Portfolio
turnover
rate
............................
23.04%
18.70%
38.24%
11.98%
6.16%
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.
78
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.09
$10.33
$10.50
$9.97
$9.98
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.40
0.40
0.43
0.42
0.45
Net
realized
and
unrealized
gains
(losses)
...........
(1.40)
(0.25)
(0.19)
0.56
(0.01)
Total
from
investment
operations
....................
(1.00)
0.15
0.24
0.98
0.44
Less
distributions
from:
Net
investment
income
..........................
(0.38)
(0.39)
(0.41)
(0.45)
(0.45)
Net
asset
value,
end
of
year
.......................
$8.71
$10.09
$10.33
$10.50
$9.97
Total
return
....................................
(9.94)%
1.36%
2.43%
10.01%
4.55%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.62%
0.51%
0.51%
0.51%
0.52%
Expenses
net
of
waiver
and
payments
by
affiliates
d
......
0.61%
0.51%
e
0.50%
0.50%
0.52%
e
Net
investment
income
...........................
4.48%
3.77%
4.25%
4.11%
4.52%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$181,286
$228,725
$157,328
$127,806
$90,752
Portfolio
turnover
rate
............................
23.04%
18.70%
38.24%
11.98%
6.16%
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
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
79
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.08
$10.33
$10.50
$9.97
$9.98
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.40
0.39
0.43
0.42
0.45
Net
realized
and
unrealized
gains
(losses)
...........
(1.39)
(0.25)
(0.20)
0.55
(0.01)
Total
from
investment
operations
....................
(0.99)
0.14
0.23
0.97
0.44
Less
distributions
from:
Net
investment
income
..........................
(0.38)
(0.39)
(0.40)
(0.44)
(0.45)
Net
asset
value,
end
of
year
.......................
$8.71
$10.08
$10.33
$10.50
$9.97
Total
return
....................................
(9.89)%
1.22%
2.39%
9.97%
4.52%
Ratios
to
average
net
assets
Expenses
d
....................................
0.65%
0.55%
e
0.54%
0.54%
0.56%
Net
investment
income
...........................
4.42%
3.73%
4.22%
4.07%
4.48%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$846,496
$1,284,270
$1,229,100
$1,166,057
$994,336
Portfolio
turnover
rate
............................
23.04
%
18.70%
38.24%
11.98%
6.16%
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
Schedule
of
Investments,
February
28,
2023
Franklin
High
Yield
Tax-Free
Income
Fund
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
80
a
a
Shares
a
Value
a
Management
Investment
Companies
1.2%
Capital
Markets
1.2%
a
Franklin
Dynamic
Municipal
Bond
ETF
...................................
1,755,000
$
41,339,025
iShares
National
Muni
Bond
ETF
........................................
200,000
21,090,000
62,429,025
Total
Management
Investment
Companies
(Cost
$66,777,667)
....................
62,429,025
Principal
Amount
a
a
a
a
Corporate
Bonds
2.4%
Commercial
Services
&
Supplies
0.4%
b
CalPlant
I
LLC
,
21A,
Senior
Secured
Note,
144A,
9.5%,
10/12/22
..........................
$
1,920,000
1,933,064
21B,
Senior
Secured
Note,
144A,
9.5%,
10/12/22
..........................
7,205,000
7,251,954
22A,
Senior
Secured
Note,
144A,
9.5%,
10/12/22
..........................
3,975,000
4,001,476
c
22B,
Senior
Secured
Note,
144A,
9.5%,
12/30/22
..........................
345,000
345,000
c
22C,
Senior
Secured
Note,
144A,
9.5%,
12/30/22
..........................
2,610,000
2,610,000
22X,
Senior
Secured
Note,
144A,
9.5%,
3/31/23
...........................
3,910,000
3,931,139
c
23A,
Senior
Secured
Note,
144A,
9.5%,
3/31/23
...........................
1,380,000
1,380,000
23B,
Senior
Secured
Note,
144A,
9.5%,
3/31/23
...........................
1,225,000
1,225,000
22,677,633
Diversified
Consumer
Services
1.7%
Grand
Canyon
University
,
5.125
%
,
10/01/28
...............................
93,710,000
85,978,925
Electric
Utilities
0.3%
b
Mission
Rock
Utilities,
Inc.
,
144A,
7
%
,
7/01/27
..............................
15,000,000
14,042,745
Total
Corporate
Bonds
(Cost
$131,099,439)
.....................................
122,699,303
Municipal
Bonds
95.3%
Alabama
3.4%
County
of
Jefferson
,
Sewer,
Revenue,
Sub.
Lien,
2013
E,
Zero
Cpn.,
10/01/28
....................
7,350,000
5,250,411
Sewer,
Revenue,
Sub.
Lien,
2013
E,
Zero
Cpn.,
10/01/29
....................
13,465,000
8,885,730
Sewer,
Revenue,
Sub.
Lien,
2013
E,
Zero
Cpn.,
10/01/30
....................
19,050,000
11,588,698
Sewer,
Revenue,
Sub.
Lien,
2013
E,
Zero
Cpn.,
10/01/31
....................
24,845,000
13,904,333
Sewer,
Revenue,
Sub.
Lien,
2013
E,
Zero
Cpn.,
10/01/32
....................
30,825,000
15,908,721
Sewer,
Revenue,
Sub.
Lien,
2013
E,
Zero
Cpn.,
10/01/33
....................
35,700,000
17,014,142
Sewer,
Revenue,
Sub.
Lien,
2013
E,
Zero
Cpn.,
10/01/34
....................
28,020,000
12,296,061
Sewer,
Revenue,
Sub.
Lien,
2013
E,
Zero
Cpn.,
10/01/35
....................
15,000,000
6,064,450
Sewer,
Revenue,
Sub.
Lien,
2013
E,
Zero
Cpn.,
10/01/36
....................
12,425,000
4,612,656
Sewer,
Revenue,
Sub.
Lien,
2013
F,
Zero
Cpn.,
10/01/39
....................
75,000,000
77,076,750
MidCity
Improvement
District
,
Assessment
Area,
Special
Assessment,
2022,
3.875%,
11/01/27
..............
300,000
270,833
Assessment
Area,
Special
Assessment,
2022,
4.25%,
11/01/32
...............
600,000
507,657
Assessment
Area,
Special
Assessment,
2022,
4.5%,
11/01/42
................
1,090,000
862,141
Assessment
Area,
Special
Assessment,
2022,
4.75%,
11/01/49
...............
1,250,000
964,114
175,206,697
Arizona
1.8%
Arizona
Industrial
Development
Authority
,
Great
Lakes
Senior
Living
Communities
LLC
,
Revenue,
Second
Tier
,
2019
B
,
5.125
%
,
1/01/54
..........................
3,005,000
1,557,992
b
Industrial
Development
Authority
of
the
County
of
Pima
(The)
,
American
Leadership
Academy,
Inc.,
Revenue,
144A,
2019,
Refunding,
5%,
6/15/49
1,235,000
1,113,192
American
Leadership
Academy,
Inc.,
Revenue,
144A,
2022,
Refunding,
4%,
6/15/57
8,500,000
5,983,073
La
Posada
at
Park
Centre,
Inc.
Obligated
Group,
Revenue,
144A,
2022
A,
7%,
11/15/57
.......................................................
5,000,000
5,080,131
Franklin
Tax-Free
Trust
Schedule
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
81
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Arizona
(continued)
b
Industrial
Development
Authority
of
the
County
of
Pima
(The),
(continued)
La
Posada
at
Park
Centre,
Inc.
Obligated
Group,
Revenue,
144A,
2022
B-1,
6.625%,
5/15/31
........................................................
$
4,000,000
$
4,002,897
b
Maricopa
County
Industrial
Development
Authority
,
Arizona
Autism
Charter
Schools
Obligated
Group,
Revenue,
144A,
2021
A,
4%,
7/01/41
........................................................
370,000
297,926
Arizona
Autism
Charter
Schools
Obligated
Group,
Revenue,
144A,
2021
A,
4%,
7/01/51
........................................................
545,000
401,462
Arizona
Autism
Charter
Schools
Obligated
Group,
Revenue,
144A,
2021
A,
4%,
7/01/61
........................................................
2,625,000
1,831,764
Benjamin
Franklin
Charter
School
Obligated
Group,
Revenue,
144A,
2018
A,
6%,
7/01/38
........................................................
5,000,000
5,274,060
Benjamin
Franklin
Charter
School
Obligated
Group,
Revenue,
144A,
2018
A,
6%,
7/01/52
........................................................
10,000,000
10,255,237
Salt
Verde
Financial
Corp.
,
Revenue,
2007-1,
5.25%,
12/01/25
....................................
6,000,000
6,116,830
Revenue,
2007-1,
5.5%,
12/01/29
.....................................
11,105,000
11,832,332
b
Sierra
Vista
Industrial
Development
Authority
,
Georgetown
Community
Development
Authority,
Revenue,
144A,
2021
A,
Zero
Cpn.,
10/01/56
.......................................................
18,880,000
13,122,774
Georgetown
Community
Development
Authority,
Revenue,
144A,
2021
B,
6.25%,
10/01/36
.......................................................
3,945,000
3,220,576
Georgetown
Community
Development
Authority,
Revenue,
144A,
2022
A,
Zero
Cpn.,
10/01/56
.......................................................
2,327,000
1,982,874
Georgetown
Community
Development
Authority,
Revenue,
144A,
2022
B,
9%,
10/01/37
.......................................................
250,000
239,243
Tempe
Industrial
Development
Authority
,
b
Mirabella
at
ASU,
Inc.,
Revenue,
144A,
2017
A,
6%,
10/01/37
................
1,900,000
1,608,000
b
Mirabella
at
ASU,
Inc.,
Revenue,
144A,
2017
A,
6.125%,
10/01/47
.............
4,850,000
3,759,117
b
Mirabella
at
ASU,
Inc.,
Revenue,
144A,
2017
A,
6.125%,
10/01/52
.............
2,800,000
2,124,881
Tempe
Life
Care
Village
Obligated
Group,
Revenue,
2019,
5%,
12/01/50
........
4,300,000
3,615,283
Tempe
Life
Care
Village
Obligated
Group,
Revenue,
2019,
5%,
12/01/54
........
8,000,000
6,607,066
Tempe
Life
Care
Village
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
12/01/46
.......................................................
500,000
362,683
Tempe
Life
Care
Village
Obligated
Group,
Revenue,
2021
B,
4%,
12/01/56
.......
4,260,000
2,857,063
93,246,456
Arkansas
0.1%
b
Arkansas
Development
Finance
Authority
,
United
States
Steel
Corp.
,
Revenue
,
144A,
2022
,
5.45
%
,
9/01/52
...............................................
8,000,000
7,884,514
California
19.6%
Alvord
Unified
School
District
,
GO
,
2011
B
,
AGMC
Insured
,
Zero
Cpn.,
8/01/41
.....
30,750,000
12,545,852
b
California
Community
College
Financing
Authority
,
NCCD-Napa
Valley
Properties
LLC,
Revenue,
144A,
2022
A,
4.25%,
7/01/32
.....
500,000
472,637
NCCD-Napa
Valley
Properties
LLC,
Revenue,
144A,
2022
A,
5.75%,
7/01/60
.....
17,500,000
16,774,179
NCCD-Napa
Valley
Properties
LLC,
Revenue,
144A,
2022
C,
6.75%,
7/01/60
.....
7,000,000
6,609,964
b
California
Community
Housing
Agency
,
Annadel
Apartments,
Revenue,
144A,
2019
A,
5%,
4/01/49
..................
10,800,000
9,346,434
Arbors
Apartments,
Revenue,
144A,
2020
A,
5%,
8/01/50
....................
5,000,000
4,701,746
Aster
Apartments,
Revenue,
Junior
Lien,
144A,
2021
A-2,
4%,
2/01/43
..........
13,970,000
11,631,042
Brio
Apartments
&
Next
on
Lex
Apartments,
Revenue,
144A,
2021
A-2,
4%,
8/01/47
16,500,000
13,194,596
Fountains
at
Emerald
Park,
Revenue,
Junior
Lien,
144A,
2021
A-2,
4%,
8/01/46
...
14,955,000
12,156,484
K
Street
Flats,
Revenue,
144A,
2021
A-2,
4%,
8/01/50
......................
16,850,000
11,957,065
Mira
Vista
Hills
Apartments,
Revenue,
144A,
2021
A,
4%,
2/01/56
.............
30,500,000
22,941,877
Twin
Creek
Apartments,
Revenue,
Junior
Lien,
144A,
2022
B,
5.5%,
2/01/40
.....
4,400,000
4,053,874
Verdant
at
Green
Valley
Apartments,
Revenue,
144A,
2019
A,
5%,
8/01/49
.......
15,365,000
14,738,704
Franklin
Tax-Free
Trust
Schedule
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.
82
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
California
County
Tobacco
Securitization
Agency
,
Alameda
County
Tobacco
Asset
Securitization
Corp.
,
Revenue
,
2002
,
5.875
%
,
6/01/35
......................
$
1,795,000
$
1,824,691
b
California
Municipal
Finance
Authority
,
California
Baptist
University,
Revenue,
144A,
2015
A,
5.5%,
11/01/45
...........
17,400,000
17,548,460
California
Baptist
University,
Revenue,
144A,
2016
A,
5%,
11/01/46
............
6,800,000
6,499,748
Capital
Christian
Center,
Revenue,
144A,
2021
A,
5%,
10/01/51
...............
8,425,000
7,128,116
b
California
Pollution
Control
Financing
Authority
,
d
CalPlant
I
LLC,
Revenue,
144A,
2017,
7.5%,
7/01/32
.......................
24,500,000
1,225,000
d
CalPlant
I
LLC,
Revenue,
144A,
2017,
8%,
7/01/39
........................
10,000,000
500,000
d
CalPlant
I
LLC,
Revenue,
144A,
2020,
7.5%,
7/01/32
.......................
10,000,000
1,300,000
Rialto
Bioenergy
Facility
LLC,
Revenue,
144A,
2018,
6.75%,
12/01/28
..........
1,690,000
1,231,430
Rialto
Bioenergy
Facility
LLC,
Revenue,
144A,
2018,
7.5%,
12/01/40
...........
5,300,000
3,550,988
b
California
Public
Finance
Authority
,
Crossroads
Christian
Schools
Obligated
Group,
Revenue,
144A,
2020,
5%,
1/01/56
4,015,000
3,143,516
Keck
Graduate
Institute
of
Applied
Life
Sciences,
Revenue,
144A,
2017
A,
Refunding,
5%,
7/01/47
............................................
2,900,000
2,805,337
Kendal
at
Sonoma
Obligated
Group,
Revenue,
144A,
2021
A,
Refunding,
5%,
11/15/46
.......................................................
1,250,000
1,073,149
California
Statewide
Communities
Development
Authority
,
b
Lancer
Educational
Housing
LLC,
Revenue,
144A,
2016
A,
Refunding,
5%,
6/01/36
7,210,000
7,072,596
Loma
Linda
University
Medical
Center
Obligated
Group,
Revenue,
2014
A,
5.25%,
12/01/44
.......................................................
7,555,000
7,353,184
b
Loma
Linda
University
Medical
Center
Obligated
Group,
Revenue,
144A,
2016
A,
5.25%,
12/01/56
.................................................
3,000,000
2,828,844
b
NCCD-Hooper
Street
LLC,
Revenue,
144A,
2019,
5.25%,
7/01/39
.............
1,275,000
1,182,468
b
NCCD-Hooper
Street
LLC,
Revenue,
144A,
2019,
5.25%,
7/01/49
.............
3,725,000
3,276,991
b
City
&
County
of
San
Francisco
,
District
No.
2020-1
,
Special
Tax
,
144A,
2021
B
,
5.25
%
,
9/01/49
.........................................................
5,000,000
3,559,748
City
of
San
Francisco
,
5.25
%
,
9/01/49
....................................
10,000,000
7,119,495
b
CMFA
Special
Finance
Agency
,
Solana
at
Grand,
Revenue,
Junior
Lien,
144A,
2021
A-2,
4%,
8/01/45
...........
35,000,000
28,437,798
Solana
at
Grand,
Revenue,
Senior
Lien,
144A,
2021
A-1,
4%,
8/01/56
..........
1,700,000
1,434,164
b
CMFA
Special
Finance
Agency
Enclave
,
Revenue,
Junior
Lien
,
144A,
2022
A-2
,
4.5
%
,
8/01/51
.........................................................
38,000,000
27,627,167
b
CMFA
Special
Finance
Agency
VII
,
Breakwater
Apartments
(The)
,
Revenue
,
144A,
2021
A-2
,
4
%
,
8/01/47
..............................................
34,035,000
27,056,511
b
CMFA
Special
Finance
Agency
VIII
,
Elan
Huntington
Beach
,
Revenue,
Junior
Lien
,
144A,
2021
A-2
,
4
%
,
8/01/47
.........................................
11,095,000
8,747,683
b
CMFA
Special
Finance
Agency
XII
,
Allure
Apartments
,
Revenue
,
144A,
2022
A-2
,
4.375
%
,
8/01/49
...................................................
18,265,000
14,456,835
b
CSCDA
Community
Improvement
Authority
,
Cameo/Garrison
Apartments,
Revenue,
144A,
2021
B,
4%,
3/01/57
............
15,000,000
10,770,638
Crescent
(The),
Revenue,
144A,
2022
B,
5.5%,
7/01/59
.....................
15,935,000
13,859,935
Dublin,
Revenue,
144A,
2021
B,
4%,
2/01/57
.............................
7,500,000
5,412,080
Escondido
Portfolio,
Revenue,
Senior
Lien,
144A,
2021
A-1,
3%,
6/01/48
........
16,000,000
10,841,326
Park
Crossing
Apartments,
Revenue,
144A,
2021
B,
4%,
12/01/48
.............
14,235,000
10,569,547
Renaissance
at
City
Center,
Revenue,
144A,
2020
A,
5%,
7/01/51
.............
20,940,000
19,529,226
Waterscape
Apartments,
Revenue,
144A,
2021
B,
4%,
9/01/46
................
2,500,000
2,028,577
Wood
Creek
Apartments,
Revenue,
Sub.
Lien,
144A,
2021
B,
4%,
12/01/59
......
19,800,000
12,869,895
Foothill-Eastern
Transportation
Corridor
Agency
,
Revenue,
2013
A,
Refunding,
AGMC
Insured,
Zero
Cpn.,
1/15/30
..............
10,000,000
10,844,779
Revenue,
2013
A,
Refunding,
AGMC
Insured,
Zero
Cpn.,
1/15/31
..............
7,295,000
8,080,980
M-S-R
Energy
Authority
,
Revenue,
2009
B,
6.125%,
11/01/29
...................................
27,160,000
29,946,173
Revenue,
2009
B,
7%,
11/01/34
.......................................
20,000,000
24,825,846
Revenue,
2009
C,
6.5%,
11/01/39
.....................................
20,000,000
23,858,686
Franklin
Tax-Free
Trust
Schedule
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
83
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
$
1,243,765
Community
Facilities
District
No.
90-1,
Special
Tax,
2012
A,
AGMC
Insured,
Zero
Cpn.,
8/01/30
...................................................
1,250,000
960,329
Community
Facilities
District
No.
90-1,
Special
Tax,
2012
A,
AGMC
Insured,
Zero
Cpn.,
8/01/31
...................................................
1,250,000
920,586
Community
Facilities
District
No.
90-1,
Special
Tax,
2012
A,
AGMC
Insured,
Zero
Cpn.,
8/01/34
...................................................
2,500,000
2,529,673
Riverside
County
Transportation
Commission
,
Revenue,
Senior
Lien,
2013
B,
Zero
Cpn.,
6/01/32
.........................
4,000,000
2,735,866
Revenue,
Senior
Lien,
2013
B,
Zero
Cpn.,
6/01/33
.........................
5,500,000
3,593,226
Revenue,
Senior
Lien,
2013
B,
Zero
Cpn.,
6/01/41
.........................
5,000,000
2,064,347
Revenue,
Senior
Lien,
2013
B,
Zero
Cpn.,
6/01/42
.........................
7,000,000
2,773,209
San
Diego
Unified
School
District
,
GO,
2012
E,
Zero
Cpn.,
7/01/42
.......................................
44,565,000
32,093,703
GO,
2012
E,
Zero
Cpn.,
7/01/47
.......................................
33,305,000
24,056,774
San
Joaquin
Hills
Transportation
Corridor
Agency
,
Revenue,
1997
A,
Refunding,
6%,
1/15/45
...............................
35,834,000
44,600,440
Revenue,
1997
A,
Refunding,
6%,
1/15/46
...............................
35,834,000
44,621,289
Revenue,
Junior
Lien,
ETM,
Zero
Cpn.,
1/01/26
...........................
110,000,000
101,015,255
Revenue,
Junior
Lien,
ETM,
Zero
Cpn.,
1/01/27
...........................
139,100,000
124,266,738
Revenue,
Junior
Lien,
2014
B,
Refunding,
5.25%,
1/15/49
...................
15,000,000
15,032,964
San
Mateo
Foster
City
School
District
,
GO
,
A
,
Zero
Cpn.,
8/01/42
...............
40,000,000
38,678,164
San
Mateo
Union
High
School
District
,
GO
,
2011
A
,
Zero
Cpn.,
9/01/41
...........
20,000,000
18,687,870
San
Ysidro
School
District
,
GO,
2015,
Refunding,
AGMC
Insured,
Zero
Cpn.,
8/01/42
...................
10,000,000
3,672,348
GO,
2015,
Refunding,
AGMC
Insured,
Zero
Cpn.,
8/01/43
...................
12,500,000
4,346,051
Silicon
Valley
Tobacco
Securitization
Authority
,
Revenue,
2007
A,
Zero
Cpn.,
6/01/36
...................................
15,000,000
7,195,222
Revenue,
2007
C,
Zero
Cpn.,
6/01/56
..................................
60,000,000
5,426,628
Southern
California
Public
Power
Authority
,
Revenue
,
2007
A
,
5.25
%
,
11/01/27
.....
9,855,000
10,409,157
Tobacco
Securitization
Authority
of
Southern
California
,
San
Diego
County
Tobacco
Asset
Securitization
Corp.,
Revenue,
2006
B,
Zero
Cpn.,
6/01/46
........................................................
50,000,000
9,245,380
San
Diego
County
Tobacco
Asset
Securitization
Corp.,
Revenue,
2019
B-2,
Refunding,
Zero
Cpn.,
6/01/54
......................................
18,000,000
3,274,661
1,015,989,706
Colorado
5.6%
3rd
and
Havana
Metropolitan
District
,
GO
,
2020
A
,
5.25
%
,
12/01/49
.............
3,775,000
3,146,620
9th
Avenue
Metropolitan
District
No.
2
,
GO
,
2018
,
5
%
,
12/01/48
................
7,417,000
6,562,206
Aerotropolis
Regional
Transportation
Authority
,
Revenue
,
2019
,
5
%
,
12/01/51
......
5,415,000
4,674,569
Allison
Valley
Metropolitan
District
No.
1
,
GO
,
2020
,
Refunding
,
5
%
,
12/01/47
......
5,250,000
4,409,930
Allison
Valley
Metropolitan
District
No.
2
,
GO
,
2020
,
Refunding
,
4.7
%
,
12/01/47
.....
4,750,000
3,833,475
Aurora
Crossroads
Metropolitan
District
No.
2
,
GO,
Senior
Lien,
2020
A,
5%,
12/01/40
.................................
1,500,000
1,384,228
GO,
Senior
Lien,
2020
A,
5%,
12/01/50
.................................
1,500,000
1,301,386
Banning
Lewis
Ranch
Regional
Metropolitan
District
No.
1
,
GO
,
2018
A
,
5.375
%
,
12/01/48
........................................................
2,245,000
2,134,910
Baseline
Metropolitan
District
No.
1
,
GO,
2021
A,
5%,
12/01/51
...........................................
1,500,000
1,273,872
GO,
2021
B,
7.5%,
12/15/51
.........................................
2,190,000
1,938,988
b
Bent
Grass
Metropolitan
District
,
GO
,
144A,
2020
,
Refunding
,
5.25
%
,
12/01/49
.....
1,685,000
1,548,986
Bradburn
Metropolitan
District
No.
2
,
GO,
2018
A,
Refunding,
5%,
12/01/38
..................................
600,000
577,253
Franklin
Tax-Free
Trust
Schedule
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.
84
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Colorado
(continued)
Bradburn
Metropolitan
District
No.
2,
(continued)
GO,
2018
A,
Refunding,
5%,
12/01/47
..................................
$
2,400,000
$
2,210,930
Brighton
Crossing
Metropolitan
District
No.
4
,
GO,
2017
A,
5%,
12/01/37
...........................................
525,000
510,445
GO,
2017
A,
5%,
12/01/47
...........................................
2,440,000
2,252,119
Brighton
Crossing
Metropolitan
District
No.
6
,
GO
,
2020
A(3)
,
5
%
,
12/01/50
........
2,000,000
1,683,724
b
Broadway
Park
North
Metropolitan
District
No.
2
,
GO,
144A,
2020,
Refunding,
5%,
12/01/40
...............................
1,325,000
1,251,814
GO,
144A,
2020,
Refunding,
5%,
12/01/49
...............................
1,575,000
1,431,653
b
Broomfield
Village
Metropolitan
District
No.
2
,
GO
,
144A,
2021
A-2
,
Refunding
,
5
%
,
12/01/49
........................................................
740,000
649,952
Centerra
Metropolitan
District
No.
1
,
GO
,
2020
A
,
Refunding
,
5
%
,
12/01/51
........
4,000,000
3,430,302
Clear
Creek
Transit
Metropolitan
District
No.
2
,
GO,
2021
A,
5%,
12/01/41
...........................................
580,000
523,548
GO,
2021
A,
5%,
12/01/50
...........................................
1,000,000
852,342
Colliers
Hill
Metropolitan
District
No.
2
,
GO
,
2022
B-1
,
Refunding
,
5.75
%
,
12/15/47
..
2,250,000
2,104,073
Colorado
Health
Facilities
Authority
,
Aberdeen
Ridge,
Inc.
Obligated
Group,
Revenue,
2021
A,
5%,
5/15/49
..........
2,235,000
1,752,536
Aberdeen
Ridge,
Inc.
Obligated
Group,
Revenue,
2021
A,
5%,
5/15/58
..........
4,750,000
3,537,071
Frasier
Meadows
Manor,
Inc.
Obligated
Group,
Revenue,
2017
A,
Refunding,
5.25%,
5/15/47
........................................................
6,500,000
5,935,220
Conestoga
Metropolitan
District
No.
2
,
GO
,
2021
A-3
,
Refunding
,
5.25
%
,
12/01/51
..
1,625,000
1,411,371
Constitution
Heights
Metropolitan
District
,
GO
,
2020
,
Refunding
,
5
%
,
12/01/49
.....
1,760,000
1,587,321
Copperleaf
Metropolitan
District
No.
6
,
GO
,
2022
B
,
6
%
,
12/15/41
...............
1,225,000
1,164,298
Cornerstar
Metropolitan
District
,
GO,
A,
Refunding,
5.125%,
12/01/37
...................................
2,000,000
1,936,781
GO,
A,
Refunding,
5.25%,
12/01/47
....................................
5,200,000
4,864,376
Cottonwood
Highlands
Metropolitan
District
No.
1
,
GO
,
2019
A
,
5
%
,
12/01/49
......
900,000
802,570
Denver
International
Business
Center
Metropolitan
District
No.
1
,
GO
,
2019
B
,
6
%
,
12/01/48
........................................................
4,290,000
4,214,284
b
DIATC
Metropolitan
District
,
GO
,
144A,
2019
,
Refunding
,
5
%
,
12/01/49
...........
2,000,000
1,734,937
E-470
Public
Highway
Authority
,
Revenue
,
2004
A
,
Refunding
,
NATL
Insured
,
Zero
Cpn.,
9/01/28
.....................................................
15,000,000
12,460,248
Eagle
Brook
Meadows
Metropolitan
District
No.
3
,
GO
,
2021
,
5
%
,
12/01/51
........
1,600,000
1,354,356
Evan's
Place
Metropolitan
District
,
GO,
2020
A(3),
5%,
12/01/40
.........................................
550,000
510,811
GO,
2020
A(3),
5%,
12/01/50
.........................................
1,575,000
1,349,110
First
Creek
Village
Metropolitan
District
,
GO,
2019
A,
5%,
12/01/39
...........................................
595,000
579,590
GO,
2019
A,
5%,
8/01/49
............................................
540,000
496,143
Greenways
Metropolitan
District
No.
1
,
GO
,
2021
A-3
,
4.625
%
,
12/01/51
..........
1,580,000
1,098,001
b
Hidden
Creek
Metropolitan
District
,
GO
,
144A,
2021
A
,
4.625
%
,
12/01/45
.........
1,140,000
886,741
b
Horizon
Metropolitan
District
No.
2
,
GO
,
144A,
2021
A
,
4.5
%
,
12/01/51
...........
1,675,000
1,151,646
b
Jacoby
Farm
Metropolitan
District
,
GO
,
144A,
2021
,
Refunding
,
5
%
,
12/15/46
......
5,000,000
4,339,495
Jay
Grove
Metropolitan
District
,
GO
,
2021
,
4.25
%
,
12/01/51
...................
1,225,000
897,471
Jefferson
Center
Metropolitan
District
No.
1
,
Revenue,
2020
A-2,
4.125%,
12/01/40
..................................
575,000
477,262
Revenue,
2020
A-2,
4.375%,
12/01/47
..................................
1,125,000
902,976
Johnstown
Farms
East
Metropolitan
District
,
GO
,
2021
,
5
%
,
12/01/51
............
1,500,000
1,238,385
Johnstown
Plaza
Metropolitan
District
,
GO
,
2022
,
Refunding
,
4.25
%
,
12/01/46
.....
8,500,000
6,769,473
b
Karl's
Farm
Metropolitan
District
No.
2
,
GO,
144A,
2020
A(3),
5.375%,
12/01/40
.................................
645,000
600,813
GO,
144A,
2020
A(3),
5.625%,
12/01/50
.................................
1,900,000
1,734,749
Liberty
Ranch
Metropolitan
District
,
GO
,
2021
A
,
Refunding
,
5.25
%
,
12/01/51
......
6,590,000
5,461,886
Meadowlark
Metropolitan
District
,
Meadowland
Metropolitan
District,
GO,
Senior
Lien,
2020
A,
4.875%,
12/01/40
....
520,000
445,025
Franklin
Tax-Free
Trust
Schedule
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
85
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Colorado
(continued)
Meadowlark
Metropolitan
District,
(continued)
Meadowland
Metropolitan
District,
GO,
Senior
Lien,
2020
A,
5.125%,
12/01/50
....
$
750,000
$
646,076
Morgan
Hill
Metropolitan
District
No.
3
,
GO
,
2021
B
,
Refunding
,
6.375
%
,
12/15/51
...
1,465,000
1,326,601
Murphy
Creek
Metropolitan
District
No.
4
,
GO
,
2021
,
5
%
,
12/01/51
..............
8,000,000
6,595,674
Nexus
North
at
DIA
Metropolitan
District
,
GO
,
2021
,
5
%
,
12/01/51
...............
565,000
481,815
Palisade
Park
West
Metropolitan
District
,
GO
,
2019
A
,
5.125
%
,
12/01/49
..........
1,500,000
1,365,012
b
Plaza
Metropolitan
District
No.
1
,
Tax
Allocation
,
144A,
2013
,
Refunding
,
5
%
,
12/01/40
3,000,000
2,821,101
Prairie
Center
Metropolitan
District
No.
7
,
GO,
2020,
4.125%,
12/15/36
.........................................
500,000
435,976
GO,
2020,
4.875%,
12/15/44
.........................................
725,000
615,797
GO,
2021,
6.375%,
6/15/46
..........................................
1,330,000
1,197,465
Pronghorn
Valley
Metropolitan
District
,
GO,
2021
A,
3.75%,
12/01/41
.........................................
515,000
393,967
GO,
2021
A,
4%,
12/01/51
...........................................
650,000
477,121
Ptarmigan
West
Metropolitan
District
No.
2
,
GO
,
2021-3
,
4.125
%
,
12/01/51
........
1,475,000
1,025,977
Public
Authority
for
Colorado
Energy
,
Revenue,
2008,
6.125%,
11/15/23
.....................................
585,000
592,934
Revenue,
2008,
6.25%,
11/15/28
......................................
12,500,000
13,440,993
Revenue,
2008,
6.5%,
11/15/38
.......................................
60,100,000
71,637,884
Raindance
Metropolitan
District
No.
1
,
Non-Potable
Water
System,
Revenue,
2020,
5%,
12/01/40
...................
625,000
574,536
Non-Potable
Water
System,
Revenue,
2020,
5.25%,
12/01/50
................
4,250,000
3,775,392
Rampart
Range
Metropolitan
District
No.
5
,
Revenue,
2021,
4%,
12/01/36
........................................
1,250,000
1,041,072
Revenue,
2021,
4%,
12/01/41
........................................
2,730,000
2,095,199
Revenue,
2021,
4%,
12/01/51
........................................
6,670,000
4,610,279
Reunion
Metropolitan
District
,
Water
Activity
Enterprise
,
Revenue
,
2021
A
,
3.625
%
,
12/01/44
........................................................
6,132,527
4,438,658
Ritoro
Metropolitan
District
,
GO
,
2019
A
,
5
%
,
12/01/49
.......................
2,000,000
1,819,020
RRC
Metropolitan
District
No.
2
,
GO
,
2021
,
5.25
%
,
12/01/51
...................
5,625,000
4,662,080
Severance
Shores
Metropolitan
District
No.
4
,
GO
,
2020
A
,
5
%
,
12/01/49
.........
2,900,000
2,651,819
South
Aurora
Regional
Improvement
Authority
,
Revenue
,
2018
,
6.25
%
,
12/01/57
....
2,815,000
2,634,036
Southglenn
Metropolitan
District
,
GO,
2016,
Refunding,
5%,
12/01/30
....................................
3,470,000
3,458,299
GO,
2016,
Refunding,
5%,
12/01/36
....................................
810,000
784,118
GO,
2016,
Refunding,
5%,
12/01/46
....................................
4,200,000
3,870,866
STC
Metropolitan
District
No.
2
,
GO,
2019
A,
Refunding,
5%,
12/01/38
..................................
2,000,000
1,859,506
GO,
2019
A,
Refunding,
5%,
12/01/49
..................................
1,000,000
894,358
Timberleaf
Metropolitan
District
,
GO
,
2020
A
,
5.75
%
,
12/01/50
..................
1,730,000
1,651,968
Village
at
Dry
Creek
Metropolitan
District
No.
2
(The)
,
GO
,
2019
,
4.375
%
,
12/01/44
..
819,000
676,630
Village
Metropolitan
District
(The)
,
GO,
2020,
Refunding,
5%,
12/01/40
....................................
1,100,000
1,042,261
GO,
2020,
Refunding,
5%,
12/01/49
....................................
1,750,000
1,607,416
Villages
at
Castle
Rock
Metropolitan
District
No.
4
,
1989
,
11.12
%
,
6/01/31
.........
3,000,000
2,790,000
Waterfront
at
Foster
Lake
Metropolitan
District
No.
2
,
GO,
2022
A(3)-1,
5%,
12/01/42
.......................................
3,705,000
3,226,226
GO,
2022
A(3)-1,
5%,
12/01/51
.......................................
4,085,000
3,257,467
GO,
2022
A(3)-2,
Zero
Cpn.,
12/01/51
..................................
5,130,000
2,940,805
Water
Tap
Fee,
Revenue,
2022,
4.625%,
12/01/28
.........................
6,000,000
5,490,008
Wild
Plum
Metropolitan
District
,
GO
,
2019
A
,
Pre-Refunded
,
5
%
,
12/01/49
.........
595,000
625,549
Willow
Bend
Metropolitan
District
,
GO,
Senior
Lien
,
2019
A
,
5
%
,
12/01/49
.........
1,000,000
884,290
287,798,522
Franklin
Tax-Free
Trust
Schedule
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.
86
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
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
$
887,522
b
Church
Home
of
Hartford
Obligated
Group,
Revenue,
144A,
A,
5%,
9/01/53
......
7,850,000
6,786,616
Masonicare
Corp.
Obligated
Group,
Revenue,
F,
Refunding,
5%,
7/01/43
........
13,000,000
12,149,044
b
McLean
Affiliates
Obligated
Group,
Revenue,
144A,
2020
A,
5%,
1/01/45
........
1,000,000
909,636
b
McLean
Affiliates
Obligated
Group,
Revenue,
144A,
2020
A,
5%,
1/01/55
........
5,695,000
4,940,413
b
Steel
Point
Infrastructure
Improvement
District
,
Tax
Allocation,
144A,
2021,
4%,
4/01/31
.................................
100,000
92,348
Tax
Allocation,
144A,
2021,
4%,
4/01/36
.................................
605,000
522,655
Tax
Allocation,
144A,
2021,
4%,
4/01/41
.................................
575,000
464,442
26,752,676
Florida
15.1%
Abbott
Square
Community
Development
District
,
Special
Assessment,
2022,
5.375%,
6/15/42
.............................
915,000
900,689
Special
Assessment,
2022,
5.5%,
6/15/52
...............................
1,500,000
1,465,672
Anabelle
Island
Community
Development
District
,
Special
Assessment,
2022,
2.7%,
5/01/27
...............................
655,000
604,644
Special
Assessment,
2022,
3.1%,
5/01/32
...............................
750,000
642,281
Special
Assessment,
2022,
3.5%,
5/01/42
...............................
1,945,000
1,472,400
Special
Assessment,
2022,
4%,
5/01/52
.................................
2,840,000
2,165,655
Artisan
Lakes
East
Community
Development
District
,
Special
Assessment,
2021-1,
2.3%,
5/01/26
..............................
220,000
204,813
Special
Assessment,
2021-1,
2.75%,
5/01/31
.............................
250,000
211,864
Special
Assessment,
2021-1,
3.125%,
5/01/41
............................
470,000
341,463
Special
Assessment,
2021-1,
4%,
5/01/51
...............................
455,000
348,980
b
Special
Assessment,
144A,
2021-2,
2.75%,
5/01/31
........................
275,000
233,050
b
Special
Assessment,
144A,
2021-2,
3.125%,
5/01/41
.......................
515,000
374,157
b
Special
Assessment,
144A,
2021-2,
4%,
5/01/52
..........................
550,000
419,509
b
Astonia
Community
Development
District
,
Special
Assessment,
144A,
2020,
4%,
5/01/40
............................
540,000
461,928
Special
Assessment,
144A,
2020,
4%,
5/01/51
............................
1,370,000
1,056,007
Assessment
Area
2,
Special
Assessment,
144A,
2021,
2.5%,
5/01/26
...........
200,000
187,862
Assessment
Area
2,
Special
Assessment,
144A,
2021,
3%,
5/01/31
............
500,000
435,502
Assessment
Area
2,
Special
Assessment,
144A,
2021,
3.2%,
5/01/41
...........
750,000
555,686
North
Parcel
Assessment
Area,
Special
Assessment,
144A,
2021,
2.5%,
5/01/26
..
195,000
183,166
North
Parcel
Assessment
Area,
Special
Assessment,
144A,
2021,
3%,
5/01/31
....
320,000
278,721
North
Parcel
Assessment
Area,
Special
Assessment,
144A,
2021,
3.2%,
5/01/41
..
750,000
555,508
Avalon
Groves
Community
Development
District
,
Special
Assessment,
2021,
3.125%,
5/01/41
.............................
360,000
263,082
Special
Assessment,
2021,
4%,
5/01/51
.................................
500,000
384,072
Assessment
Area
3,
Special
Assessment,
2021,
3%,
5/01/32
.................
200,000
171,473
Assessment
Area
3,
Special
Assessment,
2021,
3.375%,
5/01/41
..............
495,000
378,433
Assessment
Area
3,
Special
Assessment,
2021,
4%,
5/01/51
.................
1,000,000
769,868
Avalon
Park
West
Community
Development
District
,
Special
Assessment,
2020,
Refunding,
3.25%,
5/01/30
......................
215,000
193,754
Special
Assessment,
2020,
Refunding,
3.75%,
5/01/40
......................
580,000
464,484
Special
Assessment,
2020,
Refunding,
4%,
5/01/51
........................
880,000
678,272
Special
Assessment,
2022,
5.5%,
5/01/42
...............................
500,000
502,351
Special
Assessment,
2022,
5.625%,
5/01/52
.............................
875,000
870,544
Ave
Maria
Stewardship
Community
District
,
Maple
Ridge
Phase
5
Project
Area
,
Special
Assessment
,
2022
,
4
%
,
5/01/52
.......................................
2,640,000
2,036,606
Avenir
Community
Development
District
,
Assessment
Area
Three,
Special
Assessment,
2023,
4.5%,
5/01/30
............
420,000
411,665
Assessment
Area
Three,
Special
Assessment,
2023,
5.375%,
5/01/43
..........
3,755,000
3,579,265
Assessment
Area
Three,
Special
Assessment,
2023,
5.625%,
5/01/54
..........
6,340,000
6,033,338
Assessment
Area
Two,
Special
Assessment,
2021
A-1,
2.75%,
5/01/31
..........
3,250,000
2,752,765
Franklin
Tax-Free
Trust
Schedule
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
87
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
Avenir
Community
Development
District,
(continued)
Assessment
Area
Two,
Special
Assessment,
2021
A-1,
3.2%,
5/01/41
..........
$
5,000,000
$
3,670,550
Assessment
Area
Two,
Special
Assessment,
2021
A-1,
3.4%,
5/01/52
..........
5,000,000
3,454,008
Aviary
at
Rutland
Ranch
Community
Development
District
,
Assessment
Area
2,
Special
Assessment,
2021,
3.1%,
11/01/31
...............
170,000
148,057
Assessment
Area
2,
Special
Assessment,
2021,
3.4%,
11/01/41
...............
410,000
313,093
Babcock
Ranch
Community
Independent
Special
District
,
Special
Assessment,
2021,
2.875%,
5/01/31
.............................
465,000
397,998
Special
Assessment,
2021,
3.2%,
5/01/41
...............................
5,250,000
3,863,152
Special
Assessment,
2021,
4%,
5/01/52
.................................
1,910,000
1,456,842
Special
Assessment,
2022,
5%,
5/01/42
.................................
4,000,000
3,796,950
Special
Assessment,
2022,
5%,
5/01/53
.................................
5,000,000
4,603,106
Assessment
Area
2C,
Special
Assessment,
2020,
3%,
5/01/30
................
250,000
219,728
Assessment
Area
2C,
Special
Assessment,
2020,
4%,
5/01/40
................
775,000
656,074
Assessment
Area
2C,
Special
Assessment,
2020,
4%,
5/01/51
................
1,550,000
1,188,831
Assessment
Area
3A,
Special
Assessment,
2020,
2.5%,
5/01/25
...............
60,000
57,399
Assessment
Area
3A,
Special
Assessment,
2020,
3%,
5/01/30
................
250,000
219,728
Assessment
Area
3B,
Special
Assessment,
2020,
4%,
5/01/40
................
385,000
325,921
Assessment
Area
3B,
Special
Assessment,
2020,
4%,
5/01/51
................
890,000
682,619
Balm
Grove
Community
Development
District
,
Special
Assessment,
2022,
3.25%,
11/01/27
..............................
1,040,000
978,495
Special
Assessment,
2022,
3.625%,
11/01/32
.............................
1,290,000
1,142,530
Special
Assessment,
2022,
4%,
11/01/42
................................
2,500,000
2,046,012
Special
Assessment,
2022,
4.125%,
11/01/51
.............................
3,125,000
2,444,747
Bannon
Lakes
Community
Development
District
,
b
Special
Assessment,
144A,
2021,
3.5%,
5/01/41
..........................
700,000
536,600
b
Special
Assessment,
144A,
2021,
4%,
5/01/51
............................
775,000
594,494
Special
Assessment,
2022,
3.3%,
5/01/32
...............................
365,000
318,339
Special
Assessment,
2022,
4%,
5/01/42
.................................
1,385,000
1,149,370
Special
Assessment,
2022,
4%,
5/01/53
.................................
2,260,000
1,709,540
Banyan
Cay
Community
Development
District
,
Special
Assessment
,
2020
NM
,
4
%
,
11/01/51
........................................................
3,000,000
2,295,928
Belmond
Reserve
Community
Development
District
,
2020
Project,
Special
Assessment,
2020,
4%,
5/01/40
......................
1,750,000
1,479,981
2020
Project,
Special
Assessment,
2020,
4%,
5/01/51
......................
3,635,000
2,788,002
Belmont
II
Community
Development
District
,
Special
Assessment,
2020,
3.125%,
12/15/30
.............................
325,000
286,262
Special
Assessment,
2020,
3.625%,
12/15/40
.............................
1,390,000
1,106,040
Berry
Bay
Community
Development
District
,
Assessment
Area
One,
Special
Assessment,
2021,
2.625%,
5/01/26
...........
200,000
188,365
Assessment
Area
One,
Special
Assessment,
2021,
3.125%,
5/01/31
...........
400,000
352,928
Assessment
Area
One,
Special
Assessment,
2021,
3.625%,
5/01/41
...........
1,250,000
985,292
e
Assessment
Area
Two,
Special
Assessment,
2023,
5.5%,
5/01/43
..............
985,000
982,547
e
Assessment
Area
Two,
Special
Assessment,
2023,
5.75%,
5/01/53
.............
1,675,000
1,678,688
Black
Creek
Community
Development
District
,
Special
Assessment,
2022,
5.125%,
6/15/32
.............................
150,000
149,769
Special
Assessment,
2022,
5.625%,
6/15/52
.............................
2,000,000
1,977,161
Boggy
Branch
Community
Development
District
,
Special
Assessment,
2021,
2.5%,
5/01/26
...............................
295,000
276,352
Special
Assessment,
2021,
3%,
5/01/31
.................................
450,000
388,925
Special
Assessment,
2021,
3.5%,
5/01/41
...............................
1,165,000
890,484
Special
Assessment,
2021,
4%,
5/01/51
.................................
1,360,000
1,043,104
Bridgewater
North
Community
Development
District
,
Special
Assessment,
2022,
3.125%,
5/01/27
.............................
200,000
188,449
Special
Assessment,
2022,
3.5%,
5/01/32
...............................
350,000
309,886
Special
Assessment,
2022,
4%,
5/01/42
.................................
1,000,000
829,870
Franklin
Tax-Free
Trust
Schedule
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.
88
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
Bridgewater
North
Community
Development
District,
(continued)
Special
Assessment,
2022,
4%,
5/01/52
.................................
$
3,000,000
$
2,288,233
Brightwater
Community
Development
District
,
Special
Assessment,
2021,
2.85%,
5/01/31
..............................
300,000
257,550
Special
Assessment,
2021,
3.15%,
5/01/41
..............................
750,000
548,952
Brookstone
Community
Development
District
,
Assessment
Area
Two,
Special
Assessment,
2022,
4.75%,
5/01/32
.............
325,000
320,496
Assessment
Area
Two,
Special
Assessment,
2022,
5.5%,
5/01/42
..............
1,000,000
990,689
Assessment
Area
Two,
Special
Assessment,
2022,
5.625%,
5/01/52
............
1,750,000
1,713,272
Buckhead
Trails
Community
Development
District
,
Special
Assessment,
2022,
5.25%,
5/01/32
..............................
400,000
393,975
Special
Assessment,
2022,
5.625%,
5/01/42
.............................
1,000,000
975,455
Special
Assessment,
2022,
5.75%,
5/01/52
..............................
1,410,000
1,369,148
Buena
Lago
Community
Development
District
,
Special
Assessment,
2022,
5.25%,
5/01/42
..............................
665,000
650,800
Special
Assessment,
2022,
5.5%,
5/01/52
...............................
1,135,000
1,131,634
b
Cape
Coral
Health
Facilities
Authority
,
Gulf
Care,
Inc.
Obligated
Group
,
Revenue,
Senior
Lien
,
144A,
2015
,
Refunding
,
6
%
,
7/01/45
..........................
5,250,000
4,698,747
b
Capital
Trust
Agency,
Inc.
,
AcadeMir
Charter
School
West,
Revenue,
144A,
2021
A,
3%,
7/01/31
..........
100,000
84,909
AcadeMir
Charter
School
West,
Revenue,
144A,
2021
A,
4%,
7/01/41
..........
450,000
364,992
AcadeMir
Charter
School
West,
Revenue,
144A,
2021
A,
4%,
7/01/51
..........
540,000
397,191
AcadeMir
Charter
School
West,
Revenue,
144A,
2021
A,
4%,
7/01/56
..........
445,000
315,354
AcadeMir
Charter
School
West,
Revenue,
144A,
2021
A-2,
4%,
7/01/41
.........
750,000
608,321
AcadeMir
Charter
School
West,
Revenue,
144A,
2021
A-2,
4%,
7/01/51
.........
975,000
717,150
AcadeMir
Charter
School
West,
Revenue,
144A,
2021
A-2,
4%,
7/01/56
.........
750,000
531,496
Educational
Growth
Fund
LLC,
Revenue,
144A,
2021
B,
Zero
Cpn.,
7/01/31
......
9,980,000
5,594,500
Educational
Growth
Fund
LLC,
Revenue,
Senior
Lien,
144A,
2021
A-1,
5%,
7/01/56
1,000,000
889,471
Sarasota-Manatee
Jewish
Housing
Council
Obligated
Group,
Revenue,
144A,
2017,
Refunding,
5%,
7/01/46
............................................
3,250,000
2,504,549
SHI
-
Lake
Osborne
LLC,
Revenue,
144A,
2021
A-2,
4.43%,
1/01/57
...........
10,245,000
7,177,365
South
Tech
Schools
Obligated
Group,
Revenue,
144A,
2020
A,
5%,
6/15/40
......
1,235,000
1,117,936
South
Tech
Schools
Obligated
Group,
Revenue,
144A,
2020
A,
5%,
6/15/55
......
3,805,000
3,203,089
University
Bridge
LLC,
Revenue,
144A,
2018
A,
5.25%,
12/01/43
..............
31,755,000
29,989,384
WFCS
Holdings
II
LLC,
Revenue,
144A,
2021
A-1,
3.3%,
1/01/31
..............
715,000
621,358
WFCS
Holdings
II
LLC,
Revenue,
144A,
2021
A-1,
5%,
1/01/56
...............
1,050,000
787,637
WFCS
Holdings
LLC,
Revenue,
144A,
2020
A-1,
5%,
1/01/55
.................
3,500,000
2,636,381
Celebration
Community
Development
District
,
Special
Assessment,
2021,
2.25%,
5/01/26
..............................
100,000
92,952
Special
Assessment,
2021,
2.75%,
5/01/31
..............................
240,000
203,475
Special
Assessment,
2021,
3.125%,
5/01/41
.............................
590,000
428,645
Celebration
Pointe
Community
Development
District
No.
1
,
Special
Assessment,
2021,
3.375%,
5/01/41
.............................
895,000
672,549
Special
Assessment,
2021,
4%,
5/01/53
.................................
1,345,000
997,320
CFM
Community
Development
District
,
Special
Assessment
,
2021
,
2.4
%
,
5/01/26
...
190,000
177,437
Chaparral
Palm
Bay
Community
Development
District
,
Special
Assessment,
2020
A-1,
4%,
5/01/40
..............................
1,235,000
1,045,576
Special
Assessment,
2020
A-1,
4%,
5/01/50
..............................
2,015,000
1,556,398
b
Chapel
Creek
Community
Development
District
,
Special
Assessment,
144A,
2021,
3%,
5/01/31
............................
260,000
225,188
Special
Assessment,
144A,
2021,
3.375%,
5/01/41
.........................
875,000
665,381
b
Chapel
Crossings
Community
Development
District
,
Special
Assessment,
144A,
2020,
2.625%,
5/01/25
.........................
345,000
330,004
Special
Assessment,
144A,
2020,
3.2%,
5/01/30
..........................
650,000
579,158
Special
Assessment,
144A,
2020,
3.7%,
5/01/40
..........................
1,710,000
1,374,073
Special
Assessment,
144A,
2020,
4%,
5/01/51
............................
2,820,000
2,162,906
Franklin
Tax-Free
Trust
Schedule
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
89
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
b
Charlotte
County
Industrial
Development
Authority
,
MSKP
Town
&
Country
Utility
LLC,
Revenue,
144A,
2021
A,
4%,
10/01/51
.......
$
5,500,000
$
4,119,266
MSKP
Town
&
Country
Utility
LLC,
Revenue,
144A,
2021
B,
5%,
10/01/36
.......
2,500,000
2,150,417
Coddington
Community
Development
District
,
Special
Assessment,
2022,
5.75%,
5/01/42
..............................
615,000
626,250
Special
Assessment,
2022,
5.75%,
5/01/52
..............................
1,000,000
1,005,150
Collier
County
Educational
Facilities
Authority
,
Ave
Maria
University,
Inc.
,
Revenue
,
2013
A
,
Refunding
,
6
%
,
6/01/38
.......................................
12,000,000
12,036,016
Connerton
East
Community
Development
District
,
Special
Assessment,
2023,
5.25%,
6/15/43
..............................
1,395,000
1,391,432
Special
Assessment,
2023,
5.375%,
6/15/53
.............................
2,250,000
2,218,347
Coral
Bay
Lee
County
Community
Development
District
,
Assessment
Area
One,
Special
Assessment,
2022,
5.5%,
5/01/42
.............
250,000
249,226
Assessment
Area
One,
Special
Assessment,
2022,
5.625%,
5/01/52
...........
500,000
496,413
Cordoba
Ranch
Community
Development
District
,
Special
Assessment,
2021,
Refunding,
3%,
5/01/31
........................
835,000
721,672
Special
Assessment,
2021,
Refunding,
3%,
5/01/37
........................
825,000
631,892
Cordova
Palms
Community
Development
District
,
b
Special
Assessment,
144A,
2021,
2.4%,
5/01/26
..........................
345,000
322,188
b
Special
Assessment,
144A,
2021,
2.8%,
5/01/31
..........................
385,000
327,545
b
Special
Assessment,
144A,
2021,
3%,
5/01/41
............................
1,215,000
865,454
b
Special
Assessment,
144A,
2021,
4%,
5/01/52
............................
1,945,000
1,483,320
Special
Assessment,
2022-1,
5.7%,
5/01/42
..............................
330,000
331,053
Special
Assessment,
2022-1,
5.8%,
5/01/53
..............................
665,000
663,059
Special
Assessment,
2022-2,
4.5%,
5/01/27
..............................
215,000
213,378
Special
Assessment,
2022-2,
5.1%,
5/01/32
..............................
340,000
340,178
Special
Assessment,
2022-2,
5.4%,
5/01/42
..............................
1,020,000
1,005,553
Special
Assessment,
2022-2,
5.6%,
5/01/53
..............................
2,005,000
1,987,445
Corkscrew
Crossing
Community
Development
District
,
Special
Assessment,
2023,
5.1%,
5/01/43
...............................
600,000
580,151
Special
Assessment,
2023,
5.3%,
5/01/53
...............................
1,250,000
1,199,100
Creekview
Community
Development
District
,
Special
Assessment,
2022,
4.25%,
5/01/32
..............................
805,000
760,562
Special
Assessment,
2022,
4.625%,
5/01/42
.............................
2,455,000
2,195,557
Special
Assessment,
2022,
4.75%,
5/01/53
..............................
4,145,000
3,580,660
b
Crestview
II
Community
Development
District
,
Special
Assessment,
144A,
2020,
Refunding,
4%,
5/01/31
...................
250,000
237,095
Special
Assessment,
144A,
2020,
Refunding,
4%,
5/01/37
...................
475,000
418,542
Cross
Creek
North
Community
Development
District
,
Special
Assessment,
2022,
3.75%,
5/01/32
..............................
460,000
417,210
Special
Assessment,
2022,
4.25%,
5/01/42
..............................
2,340,000
2,017,382
Special
Assessment,
2022,
4.5%,
5/01/52
...............................
1,750,000
1,470,392
Crystal
Cay
Community
Development
District
,
Special
Assessment,
2021,
2.7%,
5/01/31
...............................
200,000
168,829
Special
Assessment,
2021,
3.05%,
5/01/41
..............................
850,000
610,293
Special
Assessment,
2021,
4%,
5/01/51
.................................
1,000,000
766,988
b
Currents
Community
Development
District
,
Special
Assessment,
144A,
2020
A,
4%,
5/01/40
..........................
3,100,000
2,624,522
Special
Assessment,
144A,
2020
A,
4%,
5/01/51
..........................
5,815,000
4,460,036
b
Cypress
Bluff
Community
Development
District
,
Special
Assessment,
144A,
2020
A,
3.125%,
5/01/30
.......................
250,000
222,682
Special
Assessment,
144A,
2020
A,
3.625%,
5/01/40
.......................
800,000
633,180
Special
Assessment,
144A,
2020
A,
3.8%,
5/01/50
.........................
1,170,000
868,558
Cypress
Park
Estates
Community
Development
District
,
b
Special
Assessment,
144A,
2020,
3.25%,
5/01/30
.........................
295,000
265,319
b
Special
Assessment,
144A,
2020,
3.875%,
5/01/40
.........................
1,170,000
975,959
Franklin
Tax-Free
Trust
Schedule
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.
90
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
Cypress
Park
Estates
Community
Development
District,
(continued)
b
Special
Assessment,
144A,
2020,
4%,
5/01/51
............................
$
1,210,000
$
928,056
Special
Assessment,
2022,
4.375%,
5/01/27
.............................
150,000
147,251
Special
Assessment,
2022,
4.75%,
5/01/32
..............................
410,000
400,158
Special
Assessment,
2022,
5%,
5/01/42
.................................
1,200,000
1,126,682
Special
Assessment,
2022,
5.125%,
5/01/52
.............................
1,250,000
1,154,906
e
Del
Webb
Oak
Creek
Community
Development
District
,
Special
Assessment,
2023,
5%,
5/01/43
.................................
1,435,000
1,383,711
Special
Assessment,
2023,
5.25%,
5/01/53
..............................
2,000,000
1,929,503
DG
Farms
Community
Development
District
,
Special
Assessment,
2020,
2.75%,
5/01/25
..............................
100,000
95,936
Special
Assessment,
2020,
3.25%,
5/01/30
..............................
200,000
179,270
Special
Assessment,
2020,
3.75%,
5/01/40
..............................
295,000
237,796
DW
Bayview
Community
Development
District
,
b
2021
Assessment
Area,
Special
Assessment,
144A,
2021,
2.375%,
5/01/26
......
335,000
312,606
b
2021
Assessment
Area,
Special
Assessment,
144A,
2021,
3%,
5/01/32
.........
430,000
365,122
b
2021
Assessment
Area,
Special
Assessment,
144A,
2021,
3.375%,
5/01/41
......
1,160,000
881,258
b
2021
Assessment
Area,
Special
Assessment,
144A,
2021,
4%,
5/01/51
.........
750,000
576,946
2022
Assessment
Area,
Special
Assessment,
2022,
4.5%,
5/01/32
.............
185,000
178,693
2022
Assessment
Area,
Special
Assessment,
2022,
5.125%,
5/01/42
...........
1,115,000
1,070,870
2022
Assessment
Area,
Special
Assessment,
2022,
5.25%,
5/01/52
............
750,000
709,344
East
547
Community
Development
District
,
Assessment
Area
1,
Special
Assessment,
2021,
2.5%,
5/01/26
................
130,000
121,782
Assessment
Area
1,
Special
Assessment,
2021,
3%,
5/01/31
.................
140,000
120,999
Assessment
Area
1,
Special
Assessment,
2021,
3.3%,
5/01/41
................
600,000
447,847
Assessment
Area
1,
Special
Assessment,
2021,
4%,
5/01/51
.................
1,770,000
1,357,569
East
Bonita
Beach
Road
Community
Development
District
,
Special
Assessment,
2021,
3%,
5/01/32
.................................
255,000
217,057
Special
Assessment,
2021,
3.25%,
5/01/41
..............................
750,000
559,269
East
Nassau
Stewardship
District
,
Special
Assessment,
2021,
2.4%,
5/01/26
...............................
305,000
284,833
Special
Assessment,
2021,
3%,
5/01/31
.................................
500,000
432,139
Special
Assessment,
2021,
3.5%,
5/01/41
...............................
1,270,000
976,817
Special
Assessment,
2021,
4%,
5/01/51
.................................
1,520,000
1,165,822
Eden
Hills
Community
Development
District
,
Special
Assessment,
2020,
3.25%,
5/01/30
..............................
110,000
98,598
Special
Assessment,
2020,
4%,
5/01/40
.................................
300,000
253,986
Special
Assessment,
2020,
4.125%,
5/01/51
.............................
500,000
392,238
Special
Assessment,
2022,
3.25%,
5/01/27
..............................
455,000
430,852
Special
Assessment,
2022,
3.625%,
5/01/32
.............................
610,000
545,618
Special
Assessment,
2022,
4%,
5/01/42
.................................
1,645,000
1,365,001
Special
Assessment,
2022,
4.125%,
5/01/52
.............................
1,590,000
1,240,941
Edgewater
East
Community
Development
District
,
Assessment
Area
One,
Special
Assessment,
2021,
2.5%,
5/01/26
.............
425,000
395,740
Assessment
Area
One,
Special
Assessment,
2021,
3.1%,
5/01/31
.............
700,000
608,666
Assessment
Area
One,
Special
Assessment,
2021,
3.6%,
5/01/41
.............
2,625,000
2,036,970
Assessment
Area
One,
Special
Assessment,
2021,
4%,
5/01/51
...............
2,825,000
2,168,348
Assessment
Area
Two,
Special
Assessment,
2022,
3.375%,
5/01/32
............
1,985,000
1,723,251
Assessment
Area
Two,
Special
Assessment,
2022,
4%,
5/01/42
...............
4,000,000
3,318,620
Assessment
Area
Two,
Special
Assessment,
2022,
4%,
5/01/52
...............
6,200,000
4,722,658
b
Enbrook
Community
Development
District
,
Special
Assessment,
144A,
2020,
4%,
5/01/40
............................
500,000
422,553
Special
Assessment,
144A,
2020,
4%,
5/01/51
............................
1,150,000
881,800
b
Entrada
Community
Development
District
,
Special
Assessment,
144A,
2021,
2.125%,
5/01/26
.........................
165,000
152,457
Special
Assessment,
144A,
2021,
2.625%,
5/01/31
.........................
370,000
309,350
Franklin
Tax-Free
Trust
Schedule
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)
Florida
(continued)
b
Entrada
Community
Development
District,
(continued)
Special
Assessment,
144A,
2021,
3.125%,
5/01/41
.........................
$
935,000
$
681,903
Special
Assessment,
144A,
2021,
4%,
5/01/52
............................
2,300,000
1,752,034
Epperson
North
Community
Development
District
,
Special
Assessment,
2021,
2.5%,
5/01/26
...............................
195,000
182,743
Special
Assessment,
2021,
3%,
5/01/31
.................................
280,000
242,323
Special
Assessment,
2021,
3.5%,
5/01/41
...............................
1,365,000
1,042,803
Special
Assessment,
2021,
4%,
5/01/51
.................................
1,815,000
1,390,393
Special
Assessment,
2021
A,
2.45%,
11/01/26
............................
145,000
134,232
Special
Assessment,
2021
A,
3.1%,
11/01/31
.............................
500,000
432,063
Special
Assessment,
2021
A,
4%,
11/01/51
..............................
2,620,000
2,002,659
Epperson
Ranch
II
Community
Development
District
,
Assessment
Area
2,
Special
Assessment,
2020,
3.25%,
5/01/25
...............
370,000
359,980
Assessment
Area
2,
Special
Assessment,
2020,
3.625%,
5/01/30
..............
700,000
643,092
Assessment
Area
2,
Special
Assessment,
2020,
4.2%,
5/01/40
................
1,915,000
1,663,843
Assessment
Area
2,
Special
Assessment,
2020,
4.375%,
5/01/51
..............
3,310,000
2,714,436
Fallschase
Community
Development
District
,
Special
Assessment
,
2021
,
3.375
%
,
5/01/41
.........................................................
1,000,000
759,705
Florida
Development
Finance
Corp.
,
b
Revenue,
144A,
2021
A,
4%,
7/01/51
...................................
1,700,000
1,292,142
b,f
Brightline
Trains
Florida
LLC,
Revenue,
144A,
2019
A,
Refunding,
Mandatory
Put,
6.375%,
1/01/26
.................................................
2,000,000
1,857,902
b,f
Brightline
Trains
Florida
LLC,
Revenue,
144A,
2019
A,
Refunding,
Mandatory
Put,
6.5%,
1/01/29
...................................................
4,000,000
3,677,104
b
Brightline
Trains
Florida
LLC,
Revenue,
144A,
2019
B,
7.375%,
1/01/49
.........
12,000,000
10,866,598
b,f
Brightline
Trains
Florida
LLC,
Revenue,
144A,
2022
A,
Refunding,
Mandatory
Put,
7.25%,
10/03/23
.................................................
15,500,000
15,549,546
Glenridge
on
Palmer
Ranch
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
6/01/31
........................................................
450,000
433,759
Glenridge
on
Palmer
Ranch
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
6/01/51
........................................................
5,500,000
4,390,894
b
Mayflower
Retirement
Center,
Inc.
Obligated
Group,
Revenue,
144A,
2020
A,
5.25%,
6/01/50
........................................................
5,000,000
4,444,357
b
Mayflower
Retirement
Center,
Inc.
Obligated
Group,
Revenue,
144A,
2021
A,
Refunding,
4%,
6/01/55
............................................
3,750,000
2,494,396
River
City
Education
Obligated
Group,
Revenue,
2021
A,
4%,
7/01/55
..........
1,000,000
790,965
b
Forest
Lake
Community
Development
District
,
Special
Assessment,
144A,
2020,
3.25%,
5/01/30
.........................
350,000
315,446
Special
Assessment,
144A,
2020,
4%,
5/01/40
............................
1,270,000
1,072,679
Special
Assessment,
144A,
2020,
4%,
5/01/51
............................
1,170,000
897,376
Special
Assessment,
144A,
2022,
4.75%,
5/01/27
.........................
110,000
109,460
Special
Assessment,
144A,
2022,
5%,
5/01/32
............................
175,000
172,838
Special
Assessment,
144A,
2022,
5.375%,
5/01/42
.........................
700,000
686,006
Special
Assessment,
144A,
2022,
5.5%,
5/01/52
..........................
620,000
600,705
Gracewater
Sarasota
Community
Development
District
,
Special
Assessment,
2021,
2.4%,
5/01/26
...............................
250,000
233,470
Special
Assessment,
2021,
2.95%,
5/01/31
..............................
500,000
430,348
Special
Assessment,
2021,
3.35%,
5/01/41
..............................
3,170,000
2,384,143
Special
Assessment,
2021,
4%,
5/01/52
.................................
1,535,000
1,170,641
Grand
Oaks
Community
Development
District
,
Special
Assessment,
2020,
4.25%,
5/01/40
..............................
1,100,000
961,777
Special
Assessment,
2020,
4.5%,
5/01/52
...............................
3,500,000
2,917,707
Assessment
Area
No.
3,
Special
Assessment,
2021,
3.2%,
11/01/31
............
215,000
187,280
Assessment
Area
No.
3,
Special
Assessment,
2021,
3.5%,
11/01/41
............
555,000
422,155
Assessment
Area
No.
3,
Special
Assessment,
2021,
4%,
11/01/51
.............
1,205,000
922,198
Grande
Pines
Community
Development
District
,
Special
Assessment,
2021,
3.75%,
5/01/41
..............................
710,000
562,800
Franklin
Tax-Free
Trust
Schedule
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)
Florida
(continued)
Grande
Pines
Community
Development
District,
(continued)
Special
Assessment,
2021,
4%,
5/01/51
.................................
$
750,000
$
575,241
Greeneway
Improvement
District
,
Special
Assessment
,
2013
,
5.125
%
,
5/01/43
.....
26,745,000
26,232,416
Grove
Resort
Community
Development
District
,
Special
Assessment,
2022,
3.3%,
5/01/32
...............................
170,000
147,444
Special
Assessment,
2022,
3.55%,
5/01/42
..............................
435,000
328,717
Special
Assessment,
2022,
4%,
5/01/52
.................................
640,000
488,156
Hammock
Reserve
Community
Development
District
,
Special
Assessment,
2020,
4%,
5/01/40
.................................
540,000
458,081
Special
Assessment,
2020,
4%,
5/01/51
.................................
860,000
660,658
Special
Assessment,
2021,
3%,
5/01/31
.................................
200,000
172,856
Special
Assessment,
2021,
3.375%,
5/01/41
.............................
520,000
393,935
Special
Assessment,
2022,
4.4%,
5/01/32
...............................
500,000
478,485
Special
Assessment,
2022,
4.7%,
5/01/42
...............................
1,500,000
1,363,811
Special
Assessment,
2022,
5%,
5/01/52
.................................
2,300,000
2,084,212
Harmony
West
Community
Development
District
,
Special
Assessment,
2023,
5%,
5/01/43
.................................
275,000
266,159
Special
Assessment,
2023,
5.3%,
5/01/53
...............................
305,000
297,798
Hawkstone
Community
Development
District
,
Special
Assessment,
2021,
2.6%,
5/01/26
...............................
155,000
145,655
Special
Assessment,
2021,
3.2%,
5/01/31
...............................
440,000
386,069
Special
Assessment,
2021,
3.45%,
5/01/41
..............................
1,125,000
869,741
Special
Assessment,
2021,
4%,
5/01/52
.................................
1,000,000
765,383
Hills
of
Minneola
Community
Development
District
,
b
Special
Assessment,
144A,
2020,
3.5%,
5/01/31
..........................
1,000,000
899,256
b
Special
Assessment,
144A,
2020,
4%,
5/01/40
............................
2,625,000
2,210,412
b
Special
Assessment,
144A,
2020,
4%,
5/01/50
............................
5,505,000
4,225,767
Special
Assessment,
2021,
2.375%,
5/01/26
.............................
100,000
93,399
Special
Assessment,
2021,
2.8%,
5/01/31
...............................
250,000
213,145
Special
Assessment,
2021,
3.2%,
5/01/41
...............................
500,000
368,187
Special
Assessment,
2021,
4%,
5/01/52
.................................
900,000
680,069
Hilltop
Point
Community
Development
District
,
Assessment
Area
One,
Special
Assessment,
2022-1,
5.375%,
5/01/52
..........
700,000
662,084
Assessment
Area
Two,
Special
Assessment,
2022-2,
5.6%,
5/01/53
............
745,000
717,668
Holly
Hill
Road
East
Community
Development
District
,
Special
Assessment,
2020,
4.5%,
11/01/31
...............................
165,000
161,866
Special
Assessment,
2020,
5%,
11/01/41
................................
350,000
332,573
Special
Assessment,
2020,
5%,
11/01/50
................................
520,000
471,847
Hyde
Park
Community
Development
District
No.
1
,
Special
Assessment,
2022,
4%,
5/01/42
.................................
2,710,000
2,248,948
Special
Assessment,
2022,
4%,
5/01/52
.................................
2,545,000
1,941,184
Indigo
Community
Development
District
,
Special
Assessment,
1999
A,
7%,
5/01/31
...............................
475,000
475,514
Special
Assessment,
1999
C,
7%,
5/01/30
...............................
4,123,752
2,845,389
2021
Assessment
Area,
Special
Assessment,
2021,
2.2%,
5/01/26
.............
245,000
227,375
2021
Assessment
Area,
Special
Assessment,
2021,
2.7%,
5/01/31
.............
240,000
202,595
2021
Assessment
Area,
Special
Assessment,
2021,
3.125%,
5/01/41
...........
855,000
617,221
2021
Assessment
Area,
Special
Assessment,
2021,
4%,
5/01/52
..............
1,375,000
1,048,513
Kindred
Community
Development
District
II
,
Special
Assessment,
2020,
3.5%,
5/01/40
...............................
395,000
310,430
Special
Assessment,
2020,
3.75%,
5/01/50
..............................
570,000
423,669
Special
Assessment,
2021,
2.2%,
5/01/26
...............................
100,000
92,806
Special
Assessment,
2021,
2.7%,
5/01/31
...............................
235,000
198,374
Special
Assessment,
2021,
3.125%,
5/01/41
.............................
500,000
364,654
Special
Assessment,
2021,
4%,
5/01/52
.................................
1,810,000
1,380,365
Franklin
Tax-Free
Trust
Schedule
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)
Florida
(continued)
Kingman
Gate
Community
Development
District
,
Special
Assessment,
2020,
3.125%,
6/15/30
.............................
$
375,000
$
332,728
Special
Assessment,
2020,
4%,
6/15/40
.................................
775,000
652,026
Special
Assessment,
2020,
4%,
6/15/50
.................................
2,270,000
1,761,279
Special
Assessment,
2021,
2.5%,
6/15/26
...............................
80,000
74,758
Special
Assessment,
2021,
3.125%,
6/15/31
.............................
250,000
217,744
Special
Assessment,
2021,
3.6%,
6/15/41
...............................
750,000
587,029
Lake
Ashton
Community
Development
District
,
Special
Assessment
,
2015
A-1
,
Refunding
,
5
%
,
5/01/32
.............................................
2,175,000
2,177,900
Lake
Deer
Community
Development
District
,
Special
Assessment,
2022,
5%,
5/01/32
.................................
500,000
483,551
Special
Assessment,
2022,
5.5%,
5/01/42
...............................
1,680,000
1,608,901
Special
Assessment,
2022,
5.625%,
5/01/53
.............................
3,000,000
2,813,391
Lakes
of
Sarasota
Community
Development
District
,
Special
Assessment,
2021
A-1,
3.9%,
5/01/41
............................
285,000
238,713
Special
Assessment,
2021
A-1,
4.1%,
5/01/51
............................
265,000
211,880
Special
Assessment,
2021
A-2,
3.875%,
5/01/31
..........................
565,000
534,845
Special
Assessment,
2021
B-1,
3.625%,
5/01/31
..........................
125,000
116,236
Special
Assessment,
2021
B-1,
4.125%,
5/01/41
..........................
200,000
173,075
Special
Assessment,
2021
B-1,
4.3%,
5/01/51
............................
325,000
268,854
Special
Assessment,
2021
B-2,
4.125%,
5/01/31
..........................
1,000,000
956,296
Lakewood
Park
Community
Development
District
,
Assessment
Area
1,
Special
Assessment,
2021,
3.2%,
5/01/31
................
125,000
109,690
Assessment
Area
1,
Special
Assessment,
2021,
3.625%,
5/01/41
..............
325,000
253,019
Assessment
Area
1,
Special
Assessment,
2021,
4%,
5/01/52
.................
500,000
381,372
Lakewood
Ranch
Stewardship
District
,
District
Azario
Project,
Special
Assessment,
2020
A,
3.75%,
5/01/40
............
525,000
425,173
Lakewood
Ranch
Stewardship
District
Azario
Project,
Special
Assessment,
2020
A,
3.9%,
5/01/50
...................................................
770,000
585,610
b
Lakewood
Ranch
Stewardship
District
Lorraine
Lakes
Project,
Special
Assessment,
144A,
2020,
3.125%,
5/01/30
.......................................
250,000
222,746
b
Lakewood
Ranch
Stewardship
District
Lorraine
Lakes
Project,
Special
Assessment,
144A,
2020,
3.625%,
5/01/40
.......................................
1,075,000
858,343
b
Lakewood
Ranch
Stewardship
District
Lorraine
Lakes
Project,
Special
Assessment,
144A,
2020,
3.875%,
5/01/51
.......................................
2,640,000
1,986,767
Lakewood
Ranch
Stewardship
District
Northeast
Sector
Project,
Special
Assessment,
2020,
3%,
5/01/30
................................................
470,000
414,020
b
Lakewood
Ranch
Stewardship
District
Northeast
Sector
Project,
Special
Assessment,
144A,
2020,
Refunding,
3.2%,
5/01/30
................................
440,000
394,002
Lakewood
Ranch
Stewardship
District
Northeast
Sector
Project,
Special
Assessment,
2020,
3.5%,
5/01/40
..............................................
750,000
584,572
b
Lakewood
Ranch
Stewardship
District
Northeast
Sector
Project,
Special
Assessment,
144A,
2020,
Refunding,
3.75%,
5/01/40
...............................
2,100,000
1,711,909
Star
Farms
at
Lakewood
Ranch
Project,
Special
Assessment,
2021,
2.3%,
5/01/26
.
185,000
172,598
Star
Farms
at
Lakewood
Ranch
Project,
Special
Assessment,
2021,
2.7%,
5/01/31
.
105,000
88,572
Star
Farms
at
Lakewood
Ranch
Project,
Special
Assessment,
2021,
3%,
5/01/41
..
430,000
310,958
Star
Farms
at
Lakewood
Ranch
Project,
Special
Assessment,
2021,
4%,
5/01/52
..
685,000
523,593
Laurel
Road
Community
Development
District
,
Special
Assessment,
2021
A-1,
2.6%,
5/01/26
............................
230,000
215,546
Special
Assessment,
2021
A-1,
3%,
5/01/31
..............................
350,000
302,193
Special
Assessment,
2021
A-1,
3.25%,
5/01/41
...........................
1,195,000
891,933
Special
Assessment,
2021
A-1,
4%,
5/01/52
..............................
1,455,000
1,109,793
Special
Assessment,
2021
A-2,
3.125%,
5/01/31
..........................
2,140,000
1,864,457
Lawson
Dunes
Community
Development
District
,
Special
Assessment,
2022,
4.375%,
5/01/27
.............................
250,000
245,510
Special
Assessment,
2022,
4.75%,
5/01/32
..............................
630,000
615,327
Special
Assessment,
2022,
5%,
5/01/42
.................................
1,000,000
940,028
Franklin
Tax-Free
Trust
Schedule
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)
Florida
(continued)
Lawson
Dunes
Community
Development
District,
(continued)
Special
Assessment,
2022,
5.125%,
5/01/52
.............................
$
1,500,000
$
1,385,887
Leomas
Landing
Community
Development
District
,
Special
Assessment,
2021,
2.4%,
5/01/26
...............................
335,000
312,849
Special
Assessment,
2021,
2.95%,
5/01/31
..............................
470,000
404,528
Special
Assessment,
2021,
3.35%,
5/01/41
..............................
1,210,000
904,326
Special
Assessment,
2021,
4%,
5/01/52
.................................
530,000
404,216
b
Leon
County
Housing
Finance
Authority
,
Revenue
,
144A,
2022
A
,
Zero
Cpn.,
5/01/57
8,000,000
6,500,000
Live
Oak
Lake
Community
Development
District
,
Special
Assessment,
2020,
4.4%,
5/01/40
...............................
1,600,000
1,425,854
Special
Assessment,
2020,
4.6%,
5/01/51
...............................
2,845,000
2,422,921
LT
Ranch
Community
Development
District
,
Phase
I
Assessment
Area,
Special
Assessment,
2022-1,
5.3%,
5/01/32
.........
120,000
120,854
Phase
I
Assessment
Area,
Special
Assessment,
2022-1,
5.75%,
5/01/42
........
380,000
382,656
Phase
I
Assessment
Area,
Special
Assessment,
2022-1,
5.9%,
5/01/53
.........
500,000
500,653
Phase
IIA
Assessment
Area,
Special
Assessment,
2022-2,
5%,
5/01/32
.........
1,245,000
1,250,175
Phase
IIA
Assessment
Area,
Special
Assessment,
2022-2,
5.5%,
5/01/42
........
3,160,000
3,171,021
Phase
IIA
Assessment
Area,
Special
Assessment,
2022-2,
5.7%,
5/01/53
........
5,685,000
5,696,560
LTC
Ranch
West
Residential
Community
Development
District
,
Special
Assessment,
2021
B,
3.25%,
5/01/31
.............................
4,000,000
3,523,333
Assessment
Area
1,
Special
Assessment,
2021
A,
3.125%,
5/01/31
............
700,000
610,789
Assessment
Area
1,
Special
Assessment,
2021
A,
3.45%,
5/01/41
.............
1,250,000
957,640
b
Magnolia
Park
Community
Development
District
,
Special
Assessment,
144A,
2020,
Refunding,
4%,
5/01/31
...................
250,000
237,420
Special
Assessment,
144A,
2020,
Refunding,
4%,
5/01/39
...................
688,000
592,213
b
Mandarin
Grove
Community
Development
District
,
Special
Assessment
,
144A,
2022
,
6.625
%
,
5/01/53
...................................................
2,500,000
2,568,617
Mangrove
Point
&
Mangrove
Manor
,
Community
Development
District,
Special
Assessment,
2022,
4%,
5/01/32
.......
345,000
325,335
Community
Development
District,
Special
Assessment,
2022,
4.25%,
5/01/42
.....
1,130,000
973,849
Community
Development
District,
Special
Assessment,
2022,
4.375%,
5/01/52
....
1,500,000
1,227,162
Marshall
Creek
Community
Development
District
,
Special
Assessment
,
2015
A
,
Refunding
,
5
%
,
5/01/32
.............................................
1,680,000
1,682,437
Meadow
View
at
Twin
Creeks
Community
Development
District
,
Special
Assessment,
2021,
2.4%,
5/01/26
...............................
360,000
336,196
Special
Assessment,
2021,
3%,
5/01/31
.................................
430,000
371,639
Special
Assessment,
2021,
3.25%,
5/01/41
..............................
1,945,000
1,431,622
Special
Assessment,
2021,
3.75%,
5/01/52
..............................
630,000
450,696
Special
Assessment,
2021,
4%,
5/01/52
.................................
1,000,000
762,555
Middleton
Community
Development
District
A
,
Special
Assessment
,
2022
,
6.2
%
,
5/01/53
.........................................................
2,250,000
2,278,474
Mirada
Community
Development
District
,
Assessment
Area
4
,
Special
Assessment
,
2021
,
3.25
%
,
5/01/32
...............................................
2,800,000
2,419,568
Mirada
II
Community
Development
District
,
2021
Project
Area,
Special
Assessment,
2021,
2.5%,
5/01/26
.................
405,000
379,399
2021
Project
Area,
Special
Assessment,
2021,
3.125%,
5/01/31
...............
650,000
566,593
2021
Project
Area,
Special
Assessment,
2021,
3.5%,
5/01/41
.................
2,100,000
1,605,164
2021
Project
Area,
Special
Assessment,
2021,
4%,
5/01/51
..................
2,375,000
1,821,597
2022
Project
Area,
Special
Assessment,
2022,
5.125%,
5/01/32
...............
360,000
361,560
2022
Project
Area,
Special
Assessment,
2022,
5.6%,
5/01/42
.................
1,090,000
1,091,455
2022
Project
Area,
Special
Assessment,
2022,
5.75%,
5/01/53
................
2,000,000
1,999,321
New
Port
Tampa
Bay
Community
Development
District
,
Special
Assessment,
2021,
2.875%,
5/01/26
.............................
350,000
330,962
Special
Assessment,
2021,
3.5%,
5/01/31
...............................
500,000
449,724
Special
Assessment,
2021,
3.875%,
5/01/41
.............................
1,250,000
1,008,409
Special
Assessment,
2021,
4.125%,
5/01/52
.............................
2,250,000
1,753,391
Franklin
Tax-Free
Trust
Schedule
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)
Florida
(continued)
North
AR-1
Pasco
Community
Development
District
,
Special
Assessment,
2021,
2.625%,
5/01/26
.............................
$
140,000
$
131,463
Special
Assessment,
2021,
3.125%,
5/01/31
.............................
280,000
244,316
Assessment
Area
2,
Special
Assessment,
2021
A,
2.625%,
5/01/26
............
250,000
234,755
Assessment
Area
2,
Special
Assessment,
2021
A,
3.25%,
5/01/31
.............
275,000
242,229
Assessment
Area
2,
Special
Assessment,
2021
A,
3.55%,
5/01/41
.............
985,000
758,476
Assessment
Area
2,
Special
Assessment,
2021
A,
4%,
5/01/52
................
1,500,000
1,144,116
North
Park
Isle
Community
Development
District
,
Assessment
Area
2,
Special
Assessment,
2021,
2.45%,
11/01/26
..............
210,000
193,371
Assessment
Area
2,
Special
Assessment,
2021,
3%,
11/01/31
................
500,000
428,591
Assessment
Area
2,
Special
Assessment,
2021,
3.375%,
11/01/41
.............
1,500,000
1,130,558
Assessment
Area
2,
Special
Assessment,
2021,
4%,
11/01/51
................
2,500,000
1,915,268
North
Powerline
Road
Community
Development
District
,
Special
Assessment,
2020,
3.125%,
5/01/30
.............................
490,000
435,560
Special
Assessment,
2020,
3.625%,
5/01/40
.............................
1,000,000
792,423
Special
Assessment,
2020,
4%,
5/01/51
.................................
1,495,000
1,146,647
b
Special
Assessment,
144A,
2022,
5.25%,
5/01/32
.........................
295,000
289,101
b
Special
Assessment,
144A,
2022,
5.625%,
5/01/52
.........................
2,000,000
1,917,000
North
River
Ranch
Community
Development
District
,
Special
Assessment,
2020
A-1,
3%,
5/01/25
..............................
450,000
435,522
Special
Assessment,
2020
A-1,
3.5%,
5/01/30
............................
855,000
778,528
Special
Assessment,
2020
A-1,
4%,
5/01/40
..............................
1,150,000
973,584
Special
Assessment,
2020
A-1,
4.25%,
5/01/51
...........................
1,960,000
1,571,851
Special
Assessment,
2020
A-2,
4.2%,
5/01/35
............................
1,380,000
1,266,019
Special
Assessment,
2020
A-3,
4.75%,
5/01/40
...........................
2,000,000
1,818,448
Orange
Blossom
Groves
Community
Development
District
,
Special
Assessment,
2023,
4.25%,
6/15/30
..............................
435,000
433,897
Special
Assessment,
2023,
5.25%,
6/15/43
..............................
1,000,000
997,443
Special
Assessment,
2023,
5.375%,
6/15/53
.............................
1,375,000
1,355,656
b
Osceola
Village
Center
Community
Development
District
,
Special
Assessment,
144A,
2021,
2.875%,
5/01/31
.........................
180,000
154,359
Special
Assessment,
144A,
2021,
3.3%,
5/01/41
..........................
370,000
276,172
Palermo
Community
Development
District
,
Special
Assessment,
2023,
5%,
6/15/43
.................................
1,945,000
1,872,848
Special
Assessment,
2023,
5.25%,
6/15/53
..............................
1,500,000
1,444,871
Palm
Coast
Park
Community
Development
District
,
Special
Assessment,
2022,
5%,
5/01/42
.................................
1,000,000
949,237
Special
Assessment,
2022,
5.125%,
5/01/51
.............................
1,500,000
1,391,511
Spring
Lake
-
Tracts
2
&
3,
Special
Assessment,
2021,
2.8%,
5/01/31
...........
350,000
297,768
Spring
Lake
-
Tracts
2
&
3,
Special
Assessment,
2021,
3.125%,
5/01/41
.........
730,000
526,985
Spring
Lake
-
Tracts
2
&
3,
Special
Assessment,
2021,
4%,
5/01/52
............
1,210,000
921,919
Park
East
Community
Development
District
,
Special
Assessment
,
2021
,
3.15
%
,
11/01/41
........................................................
750,000
538,407
Parkview
at
Long
Lake
Ranch
Community
Development
District
,
Special
Assessment,
2020,
3.75%,
5/01/40
..............................
955,000
769,905
Special
Assessment,
2020,
4%,
5/01/51
.................................
800,000
613,590
Parrish
Lakes
Community
Development
District
,
Special
Assessment,
2023,
5.125%,
5/01/43
.............................
1,500,000
1,423,107
Special
Assessment,
2023,
5.4%,
5/01/53
...............................
1,605,000
1,513,903
Parrish
Plantation
Community
Development
District
,
Assessment
Area
One,
Special
Assessment,
2021,
2.5%,
5/01/26
.............
255,000
239,619
Assessment
Area
One,
Special
Assessment,
2021,
3.125%,
5/01/31
...........
235,000
206,455
Assessment
Area
One,
Special
Assessment,
2021,
3.5%,
5/01/41
.............
790,000
616,089
Assessment
Area
One,
Special
Assessment,
2021,
4%,
5/01/52
...............
1,370,000
1,044,446
Assessment
Area
Two,
Special
Assessment,
2022,
4.75%,
5/01/32
.............
215,000
210,439
Assessment
Area
Two,
Special
Assessment,
2022,
5.375%,
5/01/42
............
780,000
764,858
Franklin
Tax-Free
Trust
Schedule
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)
Florida
(continued)
Parrish
Plantation
Community
Development
District,
(continued)
Assessment
Area
Two,
Special
Assessment,
2022,
5.5%,
5/01/52
..............
$
1,250,000
$
1,221,585
b
Pine
Isle
Community
Development
District
,
Special
Assessment,
144A,
2021,
2.375%,
12/15/26
........................
80,000
73,667
Special
Assessment,
144A,
2021,
3%,
12/15/31
...........................
225,000
192,399
Special
Assessment,
144A,
2021,
3.25%,
12/15/41
.........................
1,000,000
738,250
Special
Assessment,
144A,
2021,
4%,
12/15/51
...........................
1,200,000
918,126
Pine
Ridge
Plantation
Community
Development
District
,
Special
Assessment
,
2020
A-2
,
Refunding
,
3.75
%
,
5/01/37
.......................................
700,000
587,713
Pinellas
County
Industrial
Development
Authority
,
Drs
Kiran
&
Pallavi
Patel
2017
Foundation
for
Global
Understanding,
Inc.,
Revenue,
2017,
5%,
7/01/39
................................................
2,000,000
1,933,958
Drs
Kiran
&
Pallavi
Patel
2017
Foundation
for
Global
Understanding,
Inc.,
Revenue,
2019,
5%,
7/01/29
................................................
800,000
807,443
Preserve
at
South
Branch
Community
Development
District
,
Special
Assessment,
2021,
3%,
5/01/31
.................................
150,000
130,257
Special
Assessment,
2021,
3.5%,
5/01/41
...............................
750,000
580,477
Quail
Roost
Community
Development
District
,
Expansion
Area,
Special
Assessment,
2021,
2.2%,
12/15/26
.................
165,000
151,906
Expansion
Area,
Special
Assessment,
2021,
2.7%,
12/15/31
.................
200,000
168,358
Expansion
Area,
Special
Assessment,
2021,
3.125%,
12/15/41
................
740,000
533,632
Expansion
Area,
Special
Assessment,
2021,
4%,
12/15/51
...................
2,375,000
1,818,229
Reunion
East
Community
Development
District
,
2021
Assessment
Area,
Special
Assessment,
2021,
2.4%,
5/01/26
.............
405,000
379,392
2021
Assessment
Area,
Special
Assessment,
2021,
2.85%,
5/01/31
............
400,000
341,822
2021
Assessment
Area,
Special
Assessment,
2021,
3.15%,
5/01/41
............
1,455,000
1,077,761
2021
Assessment
Area,
Special
Assessment,
2021,
4%,
5/01/51
..............
4,535,000
3,480,230
Rhodine
Road
North
Community
Development
District
,
Special
Assessment,
2022,
2.6%,
5/01/27
...............................
125,000
115,369
Special
Assessment,
2022,
3%,
5/01/32
.................................
190,000
162,339
Special
Assessment,
2022,
3.3%,
5/01/42
...............................
490,000
363,163
Ridge
at
Apopka
Community
Development
District
,
Special
Assessment,
2022,
5.375%,
5/01/42
.............................
850,000
829,701
Special
Assessment,
2022,
5.5%,
5/01/52
...............................
2,150,000
2,067,844
River
Glen
Community
Development
District
,
Special
Assessment,
2021,
3%,
5/01/31
.................................
350,000
302,497
Special
Assessment,
2021,
3.375%,
5/01/41
.............................
1,000,000
757,568
Special
Assessment,
2021,
4%,
5/01/51
.................................
1,000,000
766,988
River
Hall
Community
Development
District
,
Special
Assessment,
2020
A,
3.625%,
5/01/40
............................
1,030,000
816,196
Special
Assessment,
2020
A,
3.875%,
5/01/51
............................
2,690,000
2,023,780
Special
Assessment,
2021
A-2,
Refunding,
3%,
5/01/23
.....................
150,000
149,617
Special
Assessment,
2021
A-2,
Refunding,
3%,
5/01/24
.....................
250,000
245,691
Special
Assessment,
2021
A-2,
Refunding,
3%,
5/01/25
.....................
150,000
145,206
Special
Assessment,
2021
A-2,
Refunding,
3%,
5/01/31
.....................
1,000,000
871,503
Special
Assessment,
2021
A-2,
Refunding,
3%,
5/01/36
.....................
1,000,000
781,962
River
Landing
Community
Development
District
,
Special
Assessment,
2020
A,
3%,
5/01/25
...............................
250,000
241,957
Special
Assessment,
2020
A,
3.6%,
5/01/30
..............................
475,000
434,808
Special
Assessment,
2020
A,
4.125%,
5/01/40
............................
850,000
731,384
Special
Assessment,
2020
A,
4.35%,
5/01/51
.............................
1,100,000
897,550
Special
Assessment,
2020
B,
4.25%,
11/01/35
............................
980,000
881,694
River
Place
on
the
St.
Lucie
Community
Development
District
,
Special
Assessment,
2001
A,
7.625%,
5/01/30
............................
1,005,000
923,198
d
Special
Assessment,
2001
B,
7.25%,
5/01/10
.............................
35,000
1,750
Franklin
Tax-Free
Trust
Schedule
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)
Rivers
Edge
II
Community
Development
District
,
Special
Assessment,
2021,
3%,
5/01/31
.................................
$
205,000
$
177,177
Special
Assessment,
2021,
4%,
5/01/51
.................................
910,000
697,959
b
Rivers
Edge
III
Community
Development
District
,
Special
Assessment,
144A,
2021,
2.4%,
5/01/26
..........................
165,000
154,044
Special
Assessment,
144A,
2021,
3%,
5/01/31
............................
300,000
259,888
Special
Assessment,
144A,
2021,
3.5%,
5/01/41
..........................
775,000
591,202
Special
Assessment,
144A,
2021,
4%,
5/01/51
............................
905,000
694,770
Rivington
Community
Development
District
,
Special
Assessment,
2020,
3.75%,
5/01/40
..............................
1,685,000
1,358,418
Special
Assessment,
2022,
3.625%,
5/01/32
.............................
430,000
384,616
Special
Assessment,
2022,
4%,
5/01/52
.................................
4,365,000
3,329,379
Rolling
Hills
Community
Development
District
,
Special
Assessment,
2022
A-1,
4%,
5/01/52
..............................
945,000
720,793
Special
Assessment,
2022
A-2,
Refunding,
3.65%,
5/01/32
...................
1,000,000
893,493
b
Rolling
Oaks
Community
Development
District
,
2022
Assessment
Area
,
Special
Assessment
,
144A,
2022
,
6.5
%
,
5/01/53
................................
1,500,000
1,525,479
Rustic
Oaks
Community
Development
District
,
Special
Assessment,
2022,
3.2%,
5/01/32
...............................
1,000,000
863,628
Special
Assessment,
2022,
3.45%,
5/01/42
..............................
2,000,000
1,530,324
Special
Assessment,
2022,
4%,
5/01/52
.................................
3,950,000
3,009,570
Saddle
Creek
Preserve
of
Polk
County
Community
Development
District
,
Special
Assessment,
2020,
3%,
6/15/30
.................................
250,000
220,703
Special
Assessment,
2020,
4%,
6/15/40
.................................
610,000
520,057
Special
Assessment,
2022,
3.1%,
12/15/32
..............................
300,000
254,344
Special
Assessment,
2022,
3.35%,
12/15/41
.............................
485,000
363,686
Sanctuary
Cove
Community
Development
District
,
Special
Assessment,
2021,
2.625%,
5/01/31
.............................
190,000
159,444
Special
Assessment,
2021,
3.125%,
5/01/41
.............................
400,000
288,759
Special
Assessment,
2021,
4%,
5/01/52
.................................
770,000
587,167
Sandmine
Road
Community
Development
District
,
b
Assessment
Area
1,
Special
Assessment,
144A,
2020,
3.125%,
5/01/30
.........
300,000
266,670
b
Assessment
Area
1,
Special
Assessment,
144A,
2020,
3.625%,
5/01/40
.........
1,040,000
827,089
b
Assessment
Area
1,
Special
Assessment,
144A,
2020,
3.75%,
5/01/50
..........
2,020,000
1,495,918
Assessment
Area
2,
Special
Assessment,
2021,
2.3%,
11/01/26
...............
200,000
184,276
Assessment
Area
2,
Special
Assessment,
2021,
3%,
11/01/31
................
450,000
386,749
Assessment
Area
2,
Special
Assessment,
2021,
3.3%,
11/01/41
...............
1,180,000
879,397
Sandridge
Community
Development
District
,
Special
Assessment,
2021
A-1,
2.875%,
5/01/26
..........................
400,000
379,221
Special
Assessment,
2021
A-1,
3.4%,
5/01/31
............................
750,000
672,738
Special
Assessment,
2021
A-1,
3.875%,
5/01/41
..........................
730,000
594,605
Special
Assessment,
2021
A-1,
4%,
5/01/51
..............................
735,000
563,736
Sarasota
National
Community
Development
District
,
Special
Assessment,
2020,
Refunding,
3.5%,
5/01/31
.......................
1,490,000
1,337,109
Special
Assessment,
2020,
Refunding,
4%,
5/01/39
........................
2,210,000
1,902,311
Sawyers
Landing
Community
Development
District
,
Special
Assessment,
2021,
3.75%,
5/01/31
..............................
1,400,000
1,284,246
Special
Assessment,
2021,
4.125%,
5/01/41
.............................
3,055,000
2,529,945
Special
Assessment,
2021,
4.25%,
5/01/53
..............................
6,015,000
4,679,517
Scenic
Highway
Community
Development
District
,
Special
Assessment,
2020,
3.25%,
5/01/30
..............................
470,000
421,547
Special
Assessment,
2020,
3.75%,
5/01/40
..............................
1,230,000
989,249
Scenic
Terrace
South
Community
Development
District
,
Special
Assessment,
2022,
3.75%,
5/01/27
..............................
500,000
482,823
Special
Assessment,
2022,
4.125%,
5/01/32
.............................
750,000
707,723
Special
Assessment,
2022,
4.5%,
5/01/42
...............................
3,305,000
2,924,245
Franklin
Tax-Free
Trust
Schedule
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)
Scenic
Terrace
South
Community
Development
District,
(continued)
Special
Assessment,
2022,
4.625%,
5/01/53
.............................
$
3,385,000
$
2,866,581
b
Seminole
County
Industrial
Development
Authority
,
Galileo
School
Foundation,
Inc.
(The),
Revenue,
144A,
2021
A,
4%,
6/15/36
.....
310,000
266,287
Galileo
School
Foundation,
Inc.
(The),
Revenue,
144A,
2021
A,
4%,
6/15/41
.....
425,000
346,926
Galileo
School
Foundation,
Inc.
(The),
Revenue,
144A,
2021
A,
4%,
6/15/51
.....
830,000
622,541
Galileo
School
Foundation,
Inc.
(The),
Revenue,
144A,
2021
A,
4%,
6/15/56
.....
705,000
509,892
Shingle
Creek
at
Bronson
Community
Development
District
,
Special
Assessment,
2021,
3.1%,
6/15/31
...............................
375,000
328,961
Special
Assessment,
2021,
3.5%,
6/15/41
...............................
1,000,000
773,073
Silver
Palms
West
Community
Development
District
,
Special
Assessment,
2022,
2.6%,
6/15/27
...............................
410,000
370,298
Special
Assessment,
2022,
3%,
6/15/32
.................................
765,000
644,261
Special
Assessment,
2022,
3.25%,
6/15/42
..............................
1,750,000
1,299,889
Six
Mile
Creek
Community
Development
District
,
Assessment
Area
2,
Special
Assessment,
2020,
Refunding,
3.125%,
11/01/25
....
220,000
212,024
Assessment
Area
2,
Special
Assessment,
2020,
Refunding,
3.625%,
11/01/31
....
505,000
454,795
Assessment
Area
2,
Special
Assessment,
2020,
Refunding,
4.125%,
11/01/40
....
1,375,000
1,180,273
Assessment
Area
2,
Special
Assessment,
2020,
Refunding,
4.25%,
11/01/50
.....
2,305,000
1,856,489
Assessment
Area
2,
Special
Assessment,
2021,
Refunding,
2.5%,
5/01/26
.......
230,000
214,630
Assessment
Area
2,
Special
Assessment,
2021,
Refunding,
3.1%,
5/01/31
.......
250,000
217,725
Assessment
Area
2,
Special
Assessment,
2021,
Refunding,
3.4%,
5/01/41
.......
750,000
564,779
Assessment
Area
2,
Special
Assessment,
2021,
Refunding,
4%,
5/01/52
........
2,050,000
1,563,626
Assessment
Area
3,
Special
Assessment,
2021,
2.5%,
5/01/26
................
285,000
265,955
Assessment
Area
3,
Special
Assessment,
2021,
3%,
5/01/31
.................
520,000
449,425
Assessment
Area
3,
Special
Assessment,
2021,
3.4%,
5/01/41
................
805,000
606,196
Assessment
Area
3,
Special
Assessment,
2021,
3.5%,
5/01/41
................
1,585,000
1,211,517
Assessment
Area
3,
Special
Assessment,
2021,
4%,
5/01/51
.................
1,200,000
920,386
Assessment
Area
3,
Special
Assessment,
2021,
4%,
5/01/52
.................
655,000
499,597
Somerset
Community
Development
District
,
Special
Assessment,
2022,
Refunding,
4%,
5/01/32
........................
750,000
701,949
Special
Assessment,
2022,
Refunding,
4.2%,
5/01/37
.......................
1,000,000
901,209
South
Creek
Community
Development
District
,
Assessment
Area
1,
Special
Assessment,
2021,
2.875%,
6/15/31
..............
175,000
150,640
Assessment
Area
1,
Special
Assessment,
2021,
3.25%,
6/15/41
...............
500,000
376,886
Southern
Groves
Community
Development
District
No.
5
,
Special
Assessment,
2021,
2.4%,
5/01/26
...............................
330,000
308,180
Special
Assessment,
2021,
2.8%,
5/01/31
...............................
405,000
344,560
Special
Assessment,
2021,
3.125%,
5/01/41
.............................
1,100,000
794,086
Special
Assessment,
2021,
4%,
5/01/48
.................................
625,000
489,760
Special
Assessment,
2022-1,
6%,
5/01/49
...............................
1,000,000
1,008,313
b
Southshore
Bay
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
144A,
2021
,
3
%
,
5/01/33
..................................
1,420,000
1,180,556
Stellar
North
Community
Development
District
,
Special
Assessment,
2021,
2.45%,
5/01/26
..............................
170,000
158,298
Special
Assessment,
2021,
3%,
5/01/31
.................................
250,000
216,070
Special
Assessment,
2021,
3.2%,
5/01/41
...............................
885,000
642,564
Special
Assessment,
2021,
4%,
5/01/52
.................................
2,225,000
1,696,684
b
Stillwater
Community
Development
District
,
Special
Assessment,
144A,
2021,
2.375%,
6/15/26
.........................
300,000
279,473
Special
Assessment,
144A,
2021,
3%,
6/15/31
............................
325,000
280,946
Special
Assessment,
144A,
2021,
3.5%,
6/15/41
..........................
1,290,000
994,762
b
Stonewater
Community
Development
District
,
Special
Assessment,
144A,
2021,
3%,
11/01/32
...........................
250,000
211,348
Special
Assessment,
144A,
2021,
3.3%,
11/01/41
..........................
635,000
475,066
Franklin
Tax-Free
Trust
Schedule
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)
Stoneybrook
North
Community
Development
District
,
Assessment
Area
Two
,
Special
Assessment
,
2022
,
Refunding
,
6.375
%
,
11/01/52
..........................
$
1,835,000
$
1,888,959
b
Stoneybrook
South
Community
Development
District
,
Special
Assessment,
144A,
2020,
3%,
12/15/30
...........................
500,000
435,528
Special
Assessment,
144A,
2020,
3.5%,
12/15/40
.........................
1,000,000
773,886
Special
Assessment,
144A,
2020,
3.75%,
12/15/50
.........................
1,500,000
1,107,062
Storey
Creek
Community
Development
District
,
Assessment
Area
Two,
Special
Assessment,
2022,
5%,
6/15/32
...............
240,000
241,222
Assessment
Area
Two,
Special
Assessment,
2022,
5.2%,
6/15/42
..............
615,000
598,253
Assessment
Area
Two,
Special
Assessment,
2022,
5.375%,
6/15/52
............
1,000,000
959,340
Storey
Drive
Community
Development
District
,
Special
Assessment,
2022,
2.55%,
6/15/27
..............................
200,000
182,964
Special
Assessment,
2022,
3%,
6/15/32
.................................
375,000
317,430
Special
Assessment,
2022,
3.25%,
6/15/42
..............................
900,000
662,817
Special
Assessment,
2022,
4%,
6/15/52
.................................
3,000,000
2,295,049
b
Storey
Park
Community
Development
District
,
Assessment
Area
4,
Special
Assessment,
144A,
2021,
2.875%,
6/15/31
.........
230,000
196,833
Assessment
Area
4,
Special
Assessment,
144A,
2021,
3.3%,
6/15/41
...........
620,000
463,790
Summer
Woods
Community
Development
District
,
Assessment
Area
2,
Special
Assessment,
2021,
3%,
5/01/31
.................
165,000
142,606
Assessment
Area
2,
Special
Assessment,
2021,
3.4%,
5/01/41
................
430,000
323,807
Assessment
Area
2,
Special
Assessment,
2021,
4%,
5/01/51
.................
330,000
253,106
Assessment
Area
3,
Special
Assessment,
2021,
2.5%,
5/01/26
................
195,000
182,673
Assessment
Area
3,
Special
Assessment,
2021,
3.15%,
5/01/31
...............
200,000
174,842
Assessment
Area
3,
Special
Assessment,
2021,
3.45%,
5/01/41
...............
725,000
550,059
Assessment
Area
3,
Special
Assessment,
2021,
4%,
5/01/52
.................
1,000,000
762,744
Summerstone
Community
Development
District
,
Special
Assessment,
2020,
3.25%,
5/01/30
..............................
165,000
147,898
Special
Assessment,
2020,
3.75%,
5/01/40
..............................
700,000
569,362
Special
Assessment,
2020,
4%,
5/01/51
.................................
910,000
697,959
b
Special
Assessment,
144A,
2021,
2.75%,
5/01/31
.........................
175,000
148,304
b
Special
Assessment,
144A,
2021,
3.15%,
5/01/41
.........................
700,000
510,552
b
Special
Assessment,
144A,
2021,
4%,
5/01/51
............................
1,750,000
1,342,229
Sunbridge
Stewardship
District
,
Del
Webb
Project
Assessment,
Special
Assessment,
2022,
5%,
5/01/32
.........
350,000
351,031
Del
Webb
Project
Assessment,
Special
Assessment,
2022,
5.4%,
5/01/42
.......
925,000
918,381
Del
Webb
Project
Assessment,
Special
Assessment,
2022,
5.5%,
5/01/52
.......
1,725,000
1,685,604
Weslyn
Park
Project
Assessment,
Special
Assessment,
2022,
4.2%,
5/01/27
.....
430,000
420,819
Weslyn
Park
Project
Assessment,
Special
Assessment,
2022,
4.6%,
5/01/32
.....
460,000
444,607
Weslyn
Park
Project
Assessment,
Special
Assessment,
2022,
5.2%,
5/01/42
.....
1,000,000
953,278
Weslyn
Park
Project
Assessment,
Special
Assessment,
2022,
5.35%,
5/01/52
....
2,000,000
1,879,283
Tamarindo
Community
Development
District
,
Special
Assessment,
2021,
3%,
5/01/31
.................................
185,000
160,201
Special
Assessment,
2021,
3.375%,
5/01/41
.............................
820,000
623,794
Tern
Bay
Community
Development
District
,
Special
Assessment,
2022,
3.4%,
6/15/32
...............................
1,650,000
1,452,186
Special
Assessment,
2022,
4%,
6/15/42
.................................
3,600,000
2,985,097
Special
Assessment,
2022,
4%,
6/15/52
.................................
6,500,000
4,954,005
Terreno
Community
Development
District
,
Special
Assessment,
2023,
5%,
5/01/43
.................................
885,000
842,811
Special
Assessment,
2023,
5.25%,
5/01/53
..............................
1,020,000
969,639
Timber
Creek
Southwest
Community
Development
District
,
Assessment
Area
2,
Special
Assessment,
2021,
2.35%,
12/15/26
..............
325,000
299,650
Assessment
Area
2,
Special
Assessment,
2021,
3%,
12/15/31
................
750,000
642,449
Assessment
Area
2,
Special
Assessment,
2021,
3.3%,
12/15/41
...............
2,175,000
1,618,328
Franklin
Tax-Free
Trust
Schedule
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)
Tohoqua
Community
Development
District
,
Special
Assessment,
2021,
2.875%,
5/01/31
.............................
$
215,000
$
183,982
Special
Assessment,
2021,
3.375%,
5/01/41
.............................
810,000
611,499
Special
Assessment,
2021,
4%,
5/01/51
.................................
610,000
467,863
Tolomato
Community
Development
District
,
Special
Assessment,
2022
B,
Refunding,
3%,
5/01/32
......................
1,500,000
1,278,551
Special
Assessment,
2022
C,
Refunding,
3.2%,
5/01/32
.....................
1,500,000
1,295,441
Assessment
Area
One,
Special
Assessment,
2022-1,
3.3%,
5/01/32
............
515,000
448,504
Assessment
Area
One,
Special
Assessment,
2022-1,
4%,
5/01/52
.............
1,970,000
1,509,130
Assessment
Area
Two,
Special
Assessment,
2022-2,
3.3%,
5/01/32
............
195,000
169,822
Assessment
Area
Two,
Special
Assessment,
2022-2,
4%,
5/01/51
.............
665,000
513,133
b
Towne
Park
Community
Development
District
,
Special
Assessment,
144A,
2020,
3.125%,
5/01/30
.........................
410,000
369,920
Special
Assessment,
144A,
2020,
3.625%,
5/01/40
.........................
1,075,000
875,034
Special
Assessment,
144A,
2020,
4%,
5/01/51
............................
1,000,000
766,988
Tradition
Community
Development
District
No.
9
,
Special
Assessment,
2021,
2.3%,
5/01/26
...............................
390,000
364,405
Special
Assessment,
2021,
2.7%,
5/01/31
...............................
445,000
377,183
b
Trevesta
Community
Development
District
,
Special
Assessment,
144A,
2020,
3.25%,
5/01/30
.........................
235,000
210,642
Special
Assessment,
144A,
2020,
3.75%,
5/01/40
.........................
880,000
709,358
Special
Assessment,
144A,
2020,
4%,
5/01/51
............................
1,750,000
1,338,888
Triple
Creek
Community
Development
District
,
b
Special
Assessment,
144A,
2021,
2.375%,
11/01/26
........................
145,000
133,341
b
Special
Assessment,
144A,
2021,
2.875%,
11/01/31
........................
450,000
380,961
Special
Assessment,
2021,
3%,
11/01/31
................................
250,000
214,295
b
Special
Assessment,
144A,
2021,
3.125%,
11/01/41
........................
1,190,000
859,386
Special
Assessment,
2021,
3.5%,
11/01/41
...............................
740,000
567,897
b
Special
Assessment,
144A,
2021,
4%,
11/01/51
...........................
2,520,000
1,928,580
Tuckers
Pointe
Community
Development
District
,
Special
Assessment,
2022,
3%,
5/01/27
.................................
310,000
289,042
Special
Assessment,
2022,
3.375%,
5/01/32
.............................
565,000
495,122
Special
Assessment,
2022,
3.625%,
5/01/32
.............................
4,500,000
4,012,571
Special
Assessment,
2022,
4%,
5/01/42
.................................
1,505,000
1,248,877
Special
Assessment,
2022,
4%,
5/01/52
.................................
1,500,000
1,144,116
Two
Rivers
North
Community
Development
District
,
Special
Assessment,
2022,
4.625%,
5/01/27
.............................
100,000
98,766
Special
Assessment,
2022,
4.875%,
5/01/32
.............................
380,000
372,363
Special
Assessment,
2022,
5.125%,
5/01/42
.............................
1,540,000
1,474,640
Special
Assessment,
2022,
5.25%,
5/01/52
..............................
2,000,000
1,880,699
Two
Rivers
West
Community
Development
District
,
Special
Assessment,
2022,
6%,
5/01/43
.................................
1,025,000
1,031,097
Special
Assessment,
2022,
6.25%,
5/01/53
..............................
1,000,000
1,005,120
b
Union
Park
East
Community
Development
District
,
Assessment
Area
3,
Special
Assessment,
144A,
2021,
2.95%,
5/01/31
..........
95,000
81,841
Assessment
Area
3,
Special
Assessment,
144A,
2021,
3.35%,
5/01/41
..........
265,000
198,304
V-Dana
Community
Development
District
,
Special
Assessment,
2021,
3.125%,
5/01/31
.............................
400,000
350,003
Special
Assessment,
2021,
3.625%,
5/01/41
.............................
1,250,000
982,559
Special
Assessment,
2021,
4%,
5/01/52
.................................
1,500,000
1,144,117
b
Assessment
Area
1,
Special
Assessment,
144A,
2020,
3.5%,
5/01/31
...........
375,000
337,455
b
Assessment
Area
1,
Special
Assessment,
144A,
2020,
4%,
5/01/40
............
1,775,000
1,507,851
b
Assessment
Area
1,
Special
Assessment,
144A,
2020,
4%,
5/01/51
............
3,500,000
2,684,458
b
Veranda
Community
Development
District
II
,
Special
Assessment,
144A,
2021,
Refunding,
2.5%,
5/01/26
..................
340,000
318,507
Special
Assessment,
144A,
2021,
Refunding,
3.1%,
5/01/31
..................
395,000
344,006
Franklin
Tax-Free
Trust
Schedule
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)
b
Veranda
Community
Development
District
II,
(continued)
Special
Assessment,
144A,
2021,
Refunding,
3.6%,
5/01/41
..................
$
990,000
$
767,931
Special
Assessment,
144A,
2021,
Refunding,
4%,
5/01/51
...................
1,445,000
1,108,298
Verano
No.
3
Community
Development
District
,
Phase
1
Assessment
Area,
Special
Assessment,
2021,
3.375%,
5/01/41
.........
750,000
574,391
Phase
2
Assessment
Area,
Special
Assessment,
2022,
6.45%,
11/01/42
.........
1,000,000
1,033,276
Phase
2
Assessment
Area,
Special
Assessment,
2022,
6.625%,
11/01/52
........
1,475,000
1,528,033
Viera
Stewardship
District
,
Special
Assessment,
2021,
2.3%,
5/01/26
...............................
500,000
465,485
Special
Assessment,
2021,
2.8%,
5/01/31
...............................
800,000
680,613
Special
Assessment,
2021,
3.125%,
5/01/41
.............................
1,750,000
1,271,406
Special
Assessment,
2021,
4%,
5/01/53
.................................
1,715,000
1,298,708
Village
Community
Development
District
No.
10
,
Special
Assessment,
2014,
5.75%,
5/01/31
..............................
1,515,000
1,517,986
Special
Assessment,
2014,
6%,
5/01/44
.................................
6,415,000
6,426,501
Village
Community
Development
District
No.
13
,
b
Special
Assessment,
144A,
2020,
3.5%,
5/01/51
..........................
13,615,000
9,676,619
Special
Assessment,
2021,
2.85%,
5/01/36
..............................
1,735,000
1,358,250
Special
Assessment,
2021,
3%,
5/01/41
.................................
2,500,000
1,813,235
Special
Assessment,
2021,
3.25%,
5/01/52
..............................
5,500,000
3,682,222
Village
Community
Development
District
No.
14
,
Special
Assessment
,
2022
,
5.5
%
,
5/01/53
.........................................................
13,000,000
12,754,967
Villages
of
Glen
Creek
Community
Development
District
,
Assessment
Area
Four,
Special
Assessment,
2022
A,
4.625%,
5/01/27
..........
100,000
99,062
Assessment
Area
Four,
Special
Assessment,
2022
A,
4.875%,
5/01/32
..........
250,000
246,355
Assessment
Area
Four,
Special
Assessment,
2022
A,
5.125%,
5/01/42
..........
710,000
679,464
Assessment
Area
Four,
Special
Assessment,
2022
A,
5.25%,
5/01/53
...........
1,250,000
1,176,122
Assessment
Area
Three,
Special
Assessment,
2022,
Refunding,
2.7%,
5/01/27
...
135,000
124,458
Assessment
Area
Three,
Special
Assessment,
2022,
Refunding,
3.15%,
5/01/32
..
210,000
181,007
Assessment
Area
Three,
Special
Assessment,
2022,
Refunding,
3.45%,
5/01/42
..
550,000
410,492
Assessment
Area
Three,
Special
Assessment,
2022,
Refunding,
4%,
5/01/52
.....
1,205,000
918,110
Villamar
Community
Development
District
,
Special
Assessment,
2020,
3.2%,
5/01/30
...............................
240,000
214,677
Special
Assessment,
2020,
3.75%,
5/01/40
..............................
655,000
529,308
Special
Assessment,
2020,
4%,
5/01/51
.................................
1,000,000
768,145
Phase
4
Project,
Special
Assessment,
2022,
3.25%,
5/01/27
.................
175,000
165,840
Phase
4
Project,
Special
Assessment,
2022,
3.625%,
5/01/32
................
250,000
224,024
Phase
4
Project,
Special
Assessment,
2022,
4%,
5/01/42
....................
670,000
556,752
Phase
4
Project,
Special
Assessment,
2022,
4.125%,
5/01/52
................
500,000
390,261
Waterford
Community
Development
District
,
Assessment
Area
One,
Special
Assessment,
2023,
5.375%,
5/01/43
...........
395,000
385,707
Assessment
Area
One,
Special
Assessment,
2023,
5.6%,
5/01/53
.............
750,000
730,765
Waterset
South
Community
Development
District
,
Special
Assessment
,
2022
,
6.1
%
,
5/01/53
.........................................................
665,000
670,304
West
Port
Community
Development
District
,
b
Special
Assessment,
144A,
2020,
3.25%,
5/01/31
.........................
410,000
359,724
b
Special
Assessment,
144A,
2020,
3.625%,
5/01/41
.........................
1,085,000
840,014
b
Special
Assessment,
144A,
2020,
4%,
5/01/51
............................
1,545,000
1,185,848
Assessment
Area
One,
Special
Assessment,
2021,
2.4%,
5/01/26
.............
200,000
186,832
Assessment
Area
One,
Special
Assessment,
2021,
3%,
5/01/31
...............
570,000
493,681
Assessment
Area
One,
Special
Assessment,
2021,
3.4%,
5/01/41
.............
1,470,000
1,111,142
Assessment
Area
Three,
Special
Assessment,
2022,
5.125%,
5/01/42
..........
360,000
341,450
Assessment
Area
Three,
Special
Assessment,
2022,
5.25%,
5/01/52
...........
585,000
546,164
West
Villages
Improvement
District
,
Unit
of
Development
No.
7,
Special
Assessment,
2021,
2.5%,
5/01/26
..........
205,000
192,099
Unit
of
Development
No.
7,
Special
Assessment,
2021,
3.125%,
5/01/31
........
200,000
174,634
Unit
of
Development
No.
7,
Special
Assessment,
2021,
3.5%,
5/01/41
..........
800,000
616,087
Franklin
Tax-Free
Trust
Schedule
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)
West
Villages
Improvement
District,
(continued)
Unit
of
Development
No.
7,
Special
Assessment,
2021,
4%,
5/01/51
............
$
1,050,000
$
806,373
Unit
of
Development
No.
8,
Special
Assessment,
2021,
2.5%,
5/01/26
..........
160,000
149,932
Unit
of
Development
No.
8,
Special
Assessment,
2021,
3.125%,
5/01/31
........
525,000
458,413
Unit
of
Development
No.
8,
Special
Assessment,
2021,
3.5%,
5/01/41
..........
1,000,000
770,109
Unit
of
Development
No.
8,
Special
Assessment,
2021,
4%,
5/01/51
............
1,855,000
1,424,592
Unit
of
Development
No.
8,
Special
Assessment,
2022,
5.5%,
5/01/53
..........
1,880,000
1,828,620
Westside
Haines
City
Community
Development
District
,
Special
Assessment,
2021,
2.5%,
5/01/26
...............................
250,000
234,921
Special
Assessment,
2021,
3%,
5/01/31
.................................
350,000
305,035
Special
Assessment,
2021,
3.25%,
5/01/41
..............................
1,000,000
751,182
Special
Assessment,
2021,
4%,
5/01/52
.................................
1,250,000
950,842
Westview
North
Community
Development
District
,
Special
Assessment,
2022,
5.75%,
6/15/42
..............................
1,000,000
1,006,333
Special
Assessment,
2022,
6%,
6/15/52
.................................
1,250,000
1,256,932
e
Whispering
Pines
Community
Development
District
,
Special
Assessment,
2023,
5.375%,
5/01/43
.............................
500,000
498,443
Special
Assessment,
2023,
5.5%,
5/01/53
...............................
930,000
916,469
Willows
Community
Development
District
,
Special
Assessment,
2022,
4.7%,
5/01/29
...............................
385,000
385,975
Special
Assessment,
2022,
5.625%,
5/01/42
.............................
1,440,000
1,455,282
Special
Assessment,
2022,
5.75%,
5/01/52
..............................
1,200,000
1,207,512
Wind
Meadows
South
Community
Development
District
,
Assessment
Area
1,
Special
Assessment,
2021,
2.4%,
5/01/26
................
220,000
205,515
Assessment
Area
1,
Special
Assessment,
2021,
2.95%,
5/01/31
...............
250,000
215,326
Assessment
Area
1,
Special
Assessment,
2021,
3.35%,
5/01/41
...............
940,000
707,861
Windward
Community
Development
District
,
Special
Assessment,
2020
A-1,
3%,
5/01/25
..............................
25,000
24,196
Special
Assessment,
2020
A-1,
3.65%,
5/01/30
...........................
130,000
119,625
Special
Assessment,
2020
A-1,
4.25%,
5/01/40
...........................
630,000
550,836
Special
Assessment,
2020
A-1,
4.5%,
5/01/51
............................
495,000
414,286
Special
Assessment,
2020
A-2,
4.4%,
11/01/35
...........................
1,000,000
929,407
Wiregrass
II
Community
Development
District
,
Assessment
Area
One,
Special
Assessment,
2020,
3.125%,
5/01/30
...........
645,000
575,320
Assessment
Area
One,
Special
Assessment,
2020,
3.7%,
5/01/40
.............
1,680,000
1,357,171
Assessment
Area
One,
Special
Assessment,
2020,
3.875%,
5/01/50
...........
1,960,000
1,457,783
Assessment
Area
Two,
Special
Assessment,
2022,
5.25%,
5/01/52
.............
1,000,000
936,184
Zephyr
Lakes
Community
Development
District
,
Assessment
Area
2,
Special
Assessment,
2021,
2.5%,
5/01/26
................
175,000
163,938
Assessment
Area
2,
Special
Assessment,
2021,
3%,
5/01/31
.................
155,000
133,963
Assessment
Area
2,
Special
Assessment,
2021,
3.375%,
5/01/41
..............
660,000
498,259
Assessment
Area
2,
Special
Assessment,
2021,
4%,
5/01/51
.................
945,000
726,136
780,248,330
Georgia
1.1%
b
Development
Authority
of
Cobb
County
(The)
,
Presbyterian
Village
Austell,
Inc.,
Revenue,
144A,
2019
A,
Refunding,
5%,
12/01/39
1,825,000
1,578,103
Presbyterian
Village
Austell,
Inc.,
Revenue,
144A,
2019
A,
Refunding,
5%,
12/01/49
10,760,000
8,587,038
b
Development
Authority
of
Rockdale
County
,
AHPC
Terraces
at
Fieldstone
LLC
,
Revenue
,
144A,
2021
B
,
4.5
%
,
12/01/36
................................
10,835,000
8,815,475
Forsyth
County
Hospital
Authority
,
Georgia
Baptist
Healthcare
System
Obligated
Group
,
Revenue
,
1998
,
ETM,
6.375
%
,
10/01/28
...........................
5,375,000
5,937,513
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
2,267,006
Signia
Hotel
Management
LLC,
Revenue,
Second
Tier,
144A,
2021
B,
5%,
1/01/54
10,000,000
7,849,337
Franklin
Tax-Free
Trust
Schedule
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)
Georgia
(continued)
Main
Street
Natural
Gas,
Inc.
,
Revenue,
2007
A,
5.5%,
9/15/25
......................................
$
5,000,000
$
5,134,404
Revenue,
2007
A,
5.5%,
9/15/27
......................................
4,000,000
4,202,684
Revenue,
2007
A,
5.5%,
9/15/28
......................................
10,000,000
10,630,795
55,002,355
Idaho
0.3%
Idaho
Housing
&
Finance
Association
,
Revenue
,
2010
A
,
7
%
,
2/01/36
............
13,305,000
13,330,546
Illinois
2.1%
Chicago
Board
of
Education
,
GO,
2022
A,
4%,
12/01/47
...........................................
5,500,000
4,472,242
GO,
2022
A,
5%,
12/01/47
...........................................
4,915,000
4,668,802
Illinois
Finance
Authority
,
d
2018
Blue
Island
LLC,
Revenue,
2018
A-1,
5%,
12/01/43
....................
3,000,000
30
d
2018
Blue
Island
LLC,
Revenue,
2018
A-1,
5%,
12/01/53
....................
3,075,000
31
b
DePaul
College
Prep,
Revenue,
144A,
2023
A,
Refunding,
5.5%,
8/01/43
........
500,000
492,740
b
DePaul
College
Prep,
Revenue,
144A,
2023
A,
Refunding,
5.625%,
8/01/53
......
2,055,000
2,003,773
b
McKinley
Foundation
at
University
of
Illinois
(The),
Revenue,
144A,
2021
A,
Refunding,
5.125%,
11/01/55
.......................................
13,560,000
11,334,016
b
McKinley
Foundation
at
University
of
Illinois
(The),
Revenue,
144A,
2021
B,
7%,
11/01/37
.......................................................
4,190,000
4,070,854
Plymouth
Place
Obligated
Group,
Revenue,
2022
A,
6.75%,
5/15/58
...........
3,000,000
3,074,645
Westminster
Village,
Inc.
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
5/01/48
........................................................
4,030,000
3,181,396
Westminster
Village,
Inc.
Obligated
Group,
Revenue,
2018
A,
Refunding,
5.25%,
5/01/48
........................................................
10,000,000
8,194,922
Westminster
Village,
Inc.
Obligated
Group,
Revenue,
2018
A,
Refunding,
5.5%,
5/01/53
........................................................
10,810,000
8,957,804
Metropolitan
Pier
&
Exposition
Authority
,
Revenue,
1996,
ETM,
7%,
7/01/26
.....................................
3,900,000
4,130,707
Revenue,
2010
B-1,
Refunding,
AGMC
Insured,
Zero
Cpn.,
6/15/45
............
18,100,000
6,050,502
State
of
Illinois
,
GO,
2017
A,
4.25%,
12/01/40
.........................................
1,850,000
1,739,231
GO,
2019
B,
4%,
11/01/34
...........................................
2,400,000
2,333,624
GO,
2019
C,
4%,
11/01/40
...........................................
1,490,000
1,357,703
GO,
2019
C,
4%,
11/01/43
...........................................
2,515,000
2,226,429
GO,
2020,
5.75%,
5/01/45
...........................................
4,060,000
4,305,697
GO,
2020
B,
4%,
10/01/34
...........................................
2,000,000
1,947,755
GO,
2020
C,
4%,
10/01/37
...........................................
5,400,000
5,077,515
GO,
2020
C,
4%,
10/01/38
...........................................
5,250,000
4,887,494
GO,
2020
C,
4%,
10/01/39
...........................................
2,545,000
2,345,670
GO,
2022
C,
5.5%,
10/01/40
.........................................
6,250,000
6,710,298
GO,
2022
C,
5.5%,
10/01/44
.........................................
4,645,000
4,919,102
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
8,679,827
b
Village
of
Lincolnwood
,
North
Lincoln
Redevelopment
Project
Area
,
COP
,
144A,
2021
A
,
4.82
%
,
1/01/41
.................................................
1,535,000
1,385,534
Village
of
Villa
Park
,
Garden
Station
Redevelopment
Area
,
Tax
Allocation
,
2021
,
Zero
Cpn.,
12/31/38
....................................................
1,815,000
1,329,182
109,877,525
Franklin
Tax-Free
Trust
Schedule
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)
Indiana
0.5%
City
of
Anderson
,
Sweet
Galilee
at
the
Wigwam
LLC
,
Revenue
,
2020
A
,
5.375
%
,
1/01/40
.........................................................
$
2,740,000
$
2,228,762
b
City
of
Goshen
,
Green
Oaks
of
Goshen
LLC
,
Revenue
,
144A,
2021
A
,
5
%
,
8/01/41
..
4,065,000
3,109,080
b
City
of
Jeffersonville
,
Vivera
Senior
Living
of
Columbus
LLC
,
Revenue
,
144A,
2020
A
,
5.25
%
,
11/01/40
...................................................
4,500,000
3,584,397
b
City
of
Valparaiso
,
Green
Oaks
of
Valparaiso
LLC
,
Revenue
,
144A,
2021
,
5.375
%
,
12/01/41
........................................................
3,650,000
2,841,860
Indiana
Finance
Authority
,
Greencroft
Goshen
Obligated
Group,
Revenue,
2013
A,
Refunding,
7%,
11/15/43
..
5,000,000
5,099,518
University
of
Evansville,
Revenue,
2022
B,
7%,
9/01/32
.....................
4,000,000
3,711,920
b
Indiana
Housing
&
Community
Development
Authority
,
Vita
of
Marion
LLC
,
Revenue
,
144A,
2021
A
,
5.25
%
,
4/01/41
........................................
4,750,000
3,788,652
24,364,189
Iowa
0.2%
Iowa
Finance
Authority
,
Iowa
Fertilizer
Co.
LLC,
Revenue,
2022,
Refunding,
5%,
12/01/50
.............
6,000,000
5,867,394
Northcrest
Obligated
Group,
Revenue,
2018
A,
5%,
3/01/48
..................
7,500,000
6,535,078
12,402,472
Kansas
0.0%
†
Wyandotte
County-Kansas
City
Unified
Government
,
Revenue
,
2018
,
4.5
%
,
6/01/40
.
1,570,000
1,425,733
Kentucky
0.6%
Kentucky
Public
Transportation
Infrastructure
Authority
,
Revenue,
First
Tier,
2013
C,
Zero
Cpn.,
7/01/39
...........................
10,000,000
11,202,228
Revenue,
First
Tier,
2013
C,
Zero
Cpn.,
7/01/43
...........................
5,000,000
5,593,172
b
Louisville/Jefferson
County
Metropolitan
Government
,
PSG
Vesta
Derby
Oaks
LLC
,
Revenue
,
144A,
Zero
Cpn.,
5/01/52
....................................
19,650,000
12,851,269
29,646,669
Louisiana
1.5%
Juban
Trails
Community
Development
District
,
Special
Assessment,
2022,
3.375%,
6/01/27
.............................
100,000
93,428
Special
Assessment,
2022,
4.25%,
6/01/51
..............................
1,235,000
1,010,281
Lakeshore
Villages
Master
Community
Development
District
,
Special
Assessment,
2021,
2.375%,
6/01/26
.............................
365,000
338,976
Special
Assessment,
2021,
2.875%,
6/01/31
.............................
695,000
592,758
Special
Assessment,
2021,
3.2%,
6/01/41
...............................
2,730,000
2,137,847
Special
Assessment,
2021,
4%,
6/01/51
.................................
2,035,000
1,657,290
Special
Assessment,
2022,
5.375%,
6/01/42
.............................
730,000
727,767
Special
Assessment,
2022,
5.5%,
6/01/52
...............................
1,425,000
1,414,617
b
Louisiana
Local
Government
Environmental
Facilities
&
Community
Development
Authority
,
GOMESA,
Revenue,
144A,
2018,
5.375%,
11/01/38
........................
2,230,000
2,316,293
Invest
in
Americas
Veterans
Foundation
Louisiana,
Inc.,
Revenue,
144A,
2020
A,
Refunding,
4%,
12/01/40
...........................................
2,970,000
2,392,676
Invest
in
Americas
Veterans
Foundation
Louisiana,
Inc.,
Revenue,
144A,
2020
A,
Refunding,
4.25%,
12/01/50
........................................
5,665,000
4,358,245
Parish
of
Jefferson,
Revenue,
144A,
2019,
4%,
11/01/44
....................
2,650,000
2,333,666
Parish
of
Lafourche,
Revenue,
144A,
2019,
3.95%,
11/01/43
.................
4,316,730
3,751,813
Parish
of
St.
John
the
Baptist,
Revenue,
144A,
2019,
3.9%,
11/01/44
...........
2,260,000
1,933,245
Parish
of
St.
Martin,
Revenue,
144A,
2019,
4.4%,
11/01/44
...................
5,910,000
5,517,893
Parish
of
Vermilion,
Revenue,
144A,
2019,
4.625%,
11/01/38
.................
1,825,000
1,828,048
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
C,
5.5%,
10/01/61
.
6,300,000
4,859,774
Provident
Group
-
ULM
Properties
LLC,
Revenue,
144A,
2019
A,
5%,
7/01/54
....
4,000,000
3,025,581
Terrebonne
Parish
Consolidated
Government,
Revenue,
144A,
2018,
5.5%,
11/01/39
1,685,000
1,756,337
Franklin
Tax-Free
Trust
Schedule
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)
Louisiana
(continued)
b
Louisiana
Public
Facilities
Authority
,
Provident
Group
-
HSC
Properties,
Inc.,
Revenue,
144A,
2020
A-1,
5.375%,
1/01/40
$
5,000,000
$
4,888,641
Provident
Group
-
HSC
Properties,
Inc.,
Revenue,
144A,
2020
A-1,
5.5%,
1/01/50
.
4,500,000
4,322,952
Provident
Group
-
HSC
Properties,
Inc.,
Revenue,
144A,
2020
A-2,
7%,
1/01/57
...
10,000,000
9,636,084
Parish
of
Beauregard
,
OfficeMax,
Inc.
,
Revenue
,
2002
,
Refunding
,
6.8
%
,
2/01/27
...
13,990,000
14,021,445
St.
Tammany
Parish
Finance
Authority
,
Christwood
Obligated
Group,
Revenue,
2014,
Refunding,
5.25%,
11/15/29
.......
1,200,000
1,193,881
Christwood
Obligated
Group,
Revenue,
2014,
Refunding,
5.25%,
11/15/37
.......
1,650,000
1,565,582
77,675,120
Maryland
0.1%
City
of
Baltimore
,
Harbor
Point
Special
Taxing
District,
Revenue,
2016,
Refunding,
5%,
6/01/36
.....
1,250,000
1,254,262
Harbor
Point
Special
Taxing
District,
Revenue,
2016,
Refunding,
5.125%,
6/01/43
.
2,500,000
2,481,452
County
of
Frederick
,
Oakdale-Lake
Linganore
Development
District,
Special
Tax,
2019,
Refunding,
3.25%,
7/01/29
........................................................
750,000
695,334
Oakdale-Lake
Linganore
Development
District,
Special
Tax,
2019,
Refunding,
3.75%,
7/01/39
........................................................
1,410,000
1,218,116
b
Technology
Park
Project
TIF
Development
District,
Special
Tax,
144A,
2020
B,
Refunding,
4.625%,
7/01/43
........................................
1,155,000
1,108,472
Urbana
Community
Development
Authority,
Special
Tax,
2020
B,
Refunding,
4%,
7/01/40
........................................................
355,000
319,108
7,076,744
Massachusetts
0.0%
†
b
Massachusetts
Development
Finance
Agency
,
North
Hill
Communities,
Inc.
Obligated
Group
,
Revenue
,
144A,
2013
A
,
Pre-Refunded
,
6.25
%
,
11/15/28
..............
1,284,000
1,308,978
Michigan
0.6%
City
of
Detroit
,
Great
Lakes
Water
Authority
Sewage
Disposal
System,
Revenue,
Second
Lien,
2001
B,
NATL
Insured,
5.5%,
7/01/29
.....................................
5,000,000
5,457,539
Great
Lakes
Water
Authority
Sewage
Disposal
System,
Revenue,
Second
Lien,
2006
B,
NATL
Insured,
5%,
7/01/36
.......................................
15,000
15,022
City
of
Ecorse
,
GO
,
2011
,
6.5
%
,
11/01/35
.................................
2,215,000
2,219,542
Kalamazoo
Economic
Development
Corp.
,
b
Friendship
Village
of
Kalamazoo
Obligated
Group,
Revenue,
144A,
2021,
Refunding,
5%,
8/15/31
....................................................
900,000
841,544
b
Friendship
Village
of
Kalamazoo
Obligated
Group,
Revenue,
144A,
2021,
Refunding,
5%,
8/15/51
....................................................
3,015,000
2,386,316
Heritage
Community
of
Kalamazoo
Obligated
Group,
Revenue,
2020
A,
5%,
5/15/43
1,120,000
954,791
Heritage
Community
of
Kalamazoo
Obligated
Group,
Revenue,
2020
A,
5%,
5/15/55
8,860,000
7,085,128
b
Michigan
Finance
Authority
,
Thomas
M
Cooley
Law
School,
Revenue,
144A,
2014,
Refunding,
6%,
7/01/24
...
1,300,000
1,296,104
Thomas
M
Cooley
Law
School,
Revenue,
144A,
2014,
6.75%,
7/01/44
..........
3,805,000
3,663,314
b
Michigan
Strategic
Fund
,
Friendship
Village
of
Kalamazoo
Obligated
Group,
Revenue,
144A,
2021,
Refunding,
5%,
8/15/31
....................................................
710,000
663,885
Friendship
Village
of
Kalamazoo
Obligated
Group,
Revenue,
144A,
2021,
Refunding,
5%,
8/15/41
....................................................
895,000
752,722
Friendship
Village
of
Kalamazoo
Obligated
Group,
Revenue,
144A,
2021,
Refunding,
5%,
8/15/51
....................................................
1,380,000
1,092,244
Michigan
Tobacco
Settlement
Finance
Authority
,
Michigan
Finance
Authority
Tobacco
Settlement
,
Revenue
,
2007
B
,
Zero
Cpn.,
6/01/52
.........................
26,990,000
3,042,874
29,471,025
Franklin
Tax-Free
Trust
Schedule
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)
Minnesota
0.1%
City
of
Minneapolis
,
Ecumen
Mill
City
Quarter
LLC,
Revenue,
2015,
5.25%,
11/01/45
..............
$
2,800,000
$
2,500,098
Ecumen
Mill
City
Quarter
LLC,
Revenue,
2015,
5.375%,
11/01/50
..............
1,000,000
896,264
b
Scott
County
Community
Development
Agency
,
Spero
BP
Senior
LLC
,
Revenue
,
144A,
2022
B
,
6.25
%
,
8/01/37
.............................................
1,300,000
1,200,740
4,597,102
Mississippi
0.4%
b
Mississippi
Development
Bank
,
County
of
Hancock,
Revenue,
144A,
2019,
4.55%,
11/01/39
..................
2,035,000
2,013,790
Magnolia
Regional
Health
Center,
Revenue,
144A,
2021,
Refunding,
4%,
10/01/34
900,000
818,558
Magnolia
Regional
Health
Center,
Revenue,
144A,
2021,
Refunding,
4%,
10/01/35
800,000
716,621
Magnolia
Regional
Health
Center,
Revenue,
144A,
2021,
Refunding,
4%,
10/01/36
850,000
749,940
Magnolia
Regional
Health
Center,
Revenue,
144A,
2021,
Refunding,
4%,
10/01/41
3,000,000
2,466,582
Mississippi
Home
Corp.
,
b
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A-5,
4.5%,
6/01/62
.
7,000,000
5,099,315
b
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
C-5,
5.1%,
6/01/62
8,000,000
5,977,219
Patriot
Services
Group
Pascagoula
Portfolio
II
Obligated
Group,
Revenue,
2021
D-8,
4.65%,
6/01/62
..................................................
5,515,000
4,136,378
21,978,403
Missouri
0.3%
Cape
Girardeau
County
Industrial
Development
Authority
,
SoutheastHEALTH
Obligated
Group,
Revenue,
2016
A,
Refunding,
6%,
3/01/33
...
4,170,000
4,301,103
SoutheastHEALTH
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
3/01/29
...
250,000
259,342
City
of
Maryland
Heights
,
Tax
Allocation
,
2020
,
4.125
%
,
11/01/38
...............
2,500,000
2,068,397
Kirkwood
Industrial
Development
Authority
,
Ashfield
Active
Living
&
Wellness
Communities,
Inc.
Obligated
Group,
Revenue,
2017
A,
Refunding,
5.25%,
5/15/42
...................................
1,000,000
864,880
Ashfield
Active
Living
&
Wellness
Communities,
Inc.
Obligated
Group,
Revenue,
2017
A,
Refunding,
5.25%,
5/15/50
...................................
3,500,000
2,883,331
Stoddard
County
Industrial
Development
Authority
,
SoutheastHEALTH
Obligated
Group
,
Revenue
,
2016
B
,
Refunding
,
6
%
,
3/01/37
.........................
3,740,000
3,859,069
14,236,122
Nevada
1.2%
City
of
Henderson
,
Local
Improvement
District
No.
T-16,
Special
Assessment,
2005,
5.125%,
3/01/25
.
905,000
830,183
Local
Improvement
District
No.
T-18,
Special
Assessment,
2016,
Refunding,
4%,
9/01/32
........................................................
1,750,000
1,632,260
City
of
Las
Vegas
,
Special
Improvement
District
No.
610,
Special
Assessment,
2018,
5%,
6/01/48
....
8,015,000
7,922,541
Special
Improvement
District
No.
611,
Special
Assessment,
2020,
4%,
6/01/33
....
185,000
170,996
Special
Improvement
District
No.
611,
Special
Assessment,
2020,
4%,
6/01/34
....
185,000
168,921
Special
Improvement
District
No.
611,
Special
Assessment,
2020,
4%,
6/01/35
....
185,000
167,092
Special
Improvement
District
No.
611,
Special
Assessment,
2020,
4%,
6/01/40
....
450,000
390,995
Special
Improvement
District
No.
611,
Special
Assessment,
2020,
4.125%,
6/01/50
1,145,000
942,801
Special
Improvement
District
No.
612
Skye
Hills,
Special
Assessment,
2020,
3.5%,
6/01/35
........................................................
205,000
167,804
Special
Improvement
District
No.
612
Skye
Hills,
Special
Assessment,
2020,
4%,
6/01/50
........................................................
1,000,000
773,986
Special
Improvement
District
No.
812,
Special
Assessment,
2015,
5%,
12/01/27
...
1,355,000
1,372,231
Special
Improvement
District
No.
812,
Special
Assessment,
2015,
5%,
12/01/30
...
1,570,000
1,583,610
Special
Improvement
District
No.
812,
Special
Assessment,
2015,
5%,
12/01/35
...
995,000
999,113
Special
Improvement
District
No.
814,
Special
Assessment,
2019,
4%,
6/01/39
....
440,000
392,344
Special
Improvement
District
No.
814,
Special
Assessment,
2019,
4%,
6/01/44
....
715,000
608,589
Special
Improvement
District
No.
815,
Special
Assessment,
2020,
4.75%,
12/01/40
995,000
944,747
Franklin
Tax-Free
Trust
Schedule
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)
Nevada
(continued)
City
of
Las
Vegas,
(continued)
Special
Improvement
District
No.
816,
Special
Assessment,
2021,
2.75%,
6/01/33
.
$
520,000
$
414,645
Special
Improvement
District
No.
816,
Special
Assessment,
2021,
2.75%,
6/01/36
.
830,000
624,872
Special
Improvement
District
No.
816,
Special
Assessment,
2021,
3%,
6/01/41
....
650,000
463,680
Special
Improvement
District
No.
816,
Special
Assessment,
2021,
3.125%,
6/01/51
1,425,000
903,940
b
City
of
North
Las
Vegas
,
Special
Improvement
District
No.
66,
Special
Assessment,
144A,
2022,
5.75%,
6/01/47
........................................................
1,600,000
1,557,028
Special
Improvement
District
No.
66,
Special
Assessment,
144A,
2022,
6%,
6/01/52
1,800,000
1,794,875
b
City
of
Reno
,
Sales
Tax
,
Revenue
,
144A,
2018
C
,
Refunding
,
Zero
Cpn.,
7/01/58
....
16,000,000
1,985,334
County
of
Clark
,
Special
Improvement
District
No.
128,
Special
Assessment,
2001-2007,
5%,
2/01/26
790,000
792,293
Special
Improvement
District
No.
128,
Special
Assessment,
2001-2007,
5.05%,
2/01/31
........................................................
980,000
981,773
Special
Improvement
District
No.
159,
Special
Assessment,
2015,
5%,
8/01/35
....
2,090,000
2,103,479
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
232,017
City
of
Henderson
Local
Improvement
District
No.
T-21
Black
Mountain
Ranch,
Special
Assessment,
2022,
3.5%,
9/01/45
..............................
750,000
529,385
City
of
Henderson
Local
Improvement
District
No.
T-21
Black
Mountain
Ranch,
Special
Assessment,
2022,
4%,
9/01/51
...............................
500,000
386,858
b
State
of
Nevada
Department
of
Business
&
Industry
,
Fulcrum
Sierra
Biofuels
LLC,
Revenue,
144A,
2017,
5.875%,
12/15/27
..........
9,726,661
9,959,394
Fulcrum
Sierra
Biofuels
LLC,
Revenue,
144A,
2017,
6.25%,
12/15/37
...........
9,000,000
8,062,862
Somerset
Academy
NLV
Building
1
/
Sky
Pointe
/
Stephanie
/
Losee
Campuses,
Revenue,
144A,
2018
A,
5%,
12/15/38
................................
1,000,000
962,927
Somerset
Academy
NLV
Building
1
/
Sky
Pointe
/
Stephanie
/
Losee
Campuses,
Revenue,
144A,
2018
A,
5%,
12/15/48
................................
1,500,000
1,360,780
Tahoe-Douglas
Visitors
Authority
,
Revenue,
2020,
5%,
7/01/33
.........................................
2,190,000
2,268,278
Revenue,
2020,
5%,
7/01/40
.........................................
3,475,000
3,432,980
Revenue,
2020,
5%,
7/01/51
.........................................
7,250,000
6,962,273
64,847,886
New
Hampshire
0.2%
New
Hampshire
Business
Finance
Authority
,
Caritas
Acquisitions
VII
LLC,
Revenue,
2020
A,
3.75%,
8/15/30
...............
100,000
92,007
Caritas
Acquisitions
VII
LLC,
Revenue,
2020
A,
4.125%,
8/15/40
..............
2,545,000
2,158,052
Caritas
Acquisitions
VII
LLC,
Revenue,
2020
A,
4.25%,
8/15/46
...............
2,860,000
2,349,541
Caritas
Acquisitions
VII
LLC,
Revenue,
2020
A,
4.5%,
8/15/55
................
5,940,000
4,868,605
9,468,205
New
Jersey
1.8%
New
Jersey
Economic
Development
Authority
,
Provident
Group-Kean
Properties
LLC,
Revenue,
2017
A,
5%,
7/01/32
..........
500,000
500,483
Provident
Group-Kean
Properties
LLC,
Revenue,
2017
A,
5%,
7/01/37
..........
2,150,000
2,111,036
Provident
Group-Kean
Properties
LLC,
Revenue,
2017
A,
5%,
7/01/47
..........
2,200,000
2,017,412
United
Airlines,
Inc.,
Revenue,
1999,
5.25%,
9/15/29
.......................
25,000,000
24,878,900
United
Airlines,
Inc.,
Revenue,
2003,
5.5%,
6/01/33
........................
8,480,000
8,429,299
b
White
Horse
HMT
Urban
Renewal
LLC,
Revenue,
144A,
2020,
5%,
1/01/40
......
3,000,000
2,228,939
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue
,
2008
A
,
Zero
Cpn.,
12/15/38
........................................................
46,750,000
22,279,100
Tobacco
Settlement
Financing
Corp.
,
Revenue,
2018
A,
Refunding,
5.25%,
6/01/46
.............................
7,000,000
7,235,836
Franklin
Tax-Free
Trust
Schedule
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)
New
Jersey
(continued)
Tobacco
Settlement
Financing
Corp.,
(continued)
Revenue,
2018
B,
Refunding,
5%,
6/01/46
...............................
$
25,000,000
$
24,750,553
94,431,558
New
Mexico
0.1%
Lower
Petroglyphs
Public
Improvement
District
,
Special
Tax,
2018,
Refunding,
5%,
10/01/33
..............................
500,000
482,065
Special
Tax,
2018,
Refunding,
5%,
10/01/38
..............................
450,000
420,710
Special
Tax,
2018,
Refunding,
5%,
10/01/48
..............................
1,205,000
1,085,264
b
Winrock
Town
Center
Tax
Increment
Development
District
No.
1
,
Tax
Allocation,
Senior
Lien,
144A,
2022,
Refunding,
4%,
5/01/33
..............
1,000,000
874,293
Tax
Allocation,
Senior
Lien,
144A,
2022,
Refunding,
4.25%,
5/01/40
............
2,750,000
2,275,676
5,138,008
New
York
5.9%
Buffalo
&
Erie
County
Industrial
Land
Development
Corp.
,
D'Youville
College
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
11/01/45
......................................
2,000,000
1,814,330
Metropolitan
Transportation
Authority
,
Revenue,
2016
A-1,
5.25%,
11/15/56
...................................
4,765,000
4,759,233
Revenue,
2020
A-1,
5%,
11/15/48
.....................................
7,000,000
7,059,359
Revenue,
2020
C-1,
4.75%,
11/15/45
...................................
13,220,000
12,991,904
Revenue,
2020
C-1,
5%,
11/15/50
.....................................
37,695,000
37,941,454
Revenue,
2020
C-1,
5.25%,
11/15/55
...................................
39,500,000
40,464,811
Revenue,
2020
D,
4%,
11/15/50
.......................................
40,000,000
34,087,596
New
York
City
Housing
Development
Corp.
,
FC
8
Spruce
Street
Residential
LLC
,
Revenue
,
2014
,
F
,
Refunding
,
4.5
%
,
2/15/48
.............................
4,825,000
4,733,468
New
York
Liberty
Development
Corp.
,
b
3
World
Trade
Center
LLC,
Revenue,
144A,
2014,
2,
Refunding,
5.375%,
11/15/40
.
15,000,000
14,606,265
Goldman
Sachs
Headquarters
LLC,
Revenue,
2005,
Refunding,
5.25%,
10/01/35
..
54,500,000
61,200,017
New
York
Transportation
Development
Corp.
,
American
Airlines,
Inc.,
Revenue,
2020,
Refunding,
5.25%,
8/01/31
............
10,380,000
10,570,820
American
Airlines,
Inc.,
Revenue,
2020,
Refunding,
5.375%,
8/01/36
...........
14,950,000
15,106,817
American
Airlines,
Inc.,
Revenue,
2021,
Refunding,
2.25%,
8/01/26
............
1,570,000
1,463,306
Laguardia
Gateway
Partners
LLC,
Revenue,
2016
A,
5%,
7/01/46
.............
41,785,000
41,138,498
b
Rockland
Tobacco
Asset
Securitization
Corp.
,
Revenue
,
144A,
2005
A
,
Zero
Cpn.,
8/15/45
.........................................................
59,000,000
16,075,529
304,013,407
North
Carolina
0.1%
North
Carolina
Medical
Care
Commission
,
Maryfield,
Inc.
Obligated
Group,
Revenue,
2015,
Refunding,
5%,
10/01/30
.......
2,790,000
2,794,500
Maryfield,
Inc.
Obligated
Group,
Revenue,
2015,
Refunding,
5%,
10/01/35
.......
1,000,000
985,284
Maryfield,
Inc.
Obligated
Group,
Revenue,
2020
A,
5%,
10/01/45
..............
500,000
458,205
Maryfield,
Inc.
Obligated
Group,
Revenue,
2020
A,
5%,
10/01/50
..............
1,500,000
1,343,344
5,581,333
North
Dakota
0.3%
County
of
Burleigh
,
University
of
Mary,
Revenue,
2016,
5.1%,
4/15/36
.........................
2,800,000
2,698,654
University
of
Mary,
Revenue,
2016,
5.2%,
4/15/46
.........................
3,130,000
2,844,255
b,d
County
of
Grand
Forks
,
Red
River
Biorefinery
LLC,
Revenue,
144A,
2021
A,
6.625%,
12/15/31
..........
2,875,000
1,581,250
Red
River
Biorefinery
LLC,
Revenue,
144A,
2021
A,
7%,
12/15/43
.............
14,000,000
7,700,000
14,824,159
Franklin
Tax-Free
Trust
Schedule
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)
Ohio
3.1%
Buckeye
Tobacco
Settlement
Financing
Authority
,
Revenue,
Senior
Lien,
2020
A-2,
1,
Refunding,
3%,
6/01/48
..................
$
7,500,000
$
5,422,102
Revenue,
Senior
Lien,
2020
B-2,
2,
Refunding,
5%,
6/01/55
..................
35,200,000
32,012,281
City
of
Centerville
,
Graceworks
Lutheran
Services
Obligated
Group
,
Revenue
,
2017
,
Refunding
,
5.25
%
,
11/01/50
..........................................
5,000,000
4,357,131
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
1,277,886
b
Flats
East
Bank
TIF
District,
Tax
Allocation,
Senior
Lien,
144A,
2021
A,
Refunding,
4%,
12/01/55
...................................................
1,250,000
1,036,237
Playhouse
Square
Foundation,
Revenue,
2018,
Refunding,
5.25%,
12/01/38
.....
700,000
709,290
Playhouse
Square
Foundation,
Revenue,
2018,
Refunding,
5.5%,
12/01/43
......
700,000
711,994
County
of
Fairfield
,
Fairfield
Medical
Center
Obligated
Group
,
Revenue
,
2013
,
Refunding
,
5
%
,
6/15/43
.............................................
10,000,000
9,399,830
County
of
Franklin
,
Wesley
Communities
Obligated
Group,
Revenue,
2020,
Refunding,
5.25%,
11/15/40
2,910,000
2,664,807
Wesley
Communities
Obligated
Group,
Revenue,
2020,
Refunding,
5.25%,
11/15/55
8,800,000
7,546,878
County
of
Washington
,
Marietta
Area
Health
Care,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
6.625%,
12/01/42
................................................
10,000,000
9,939,978
Marietta
Area
Health
Care,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
6.75%,
12/01/52
.......................................................
17,000,000
16,689,748
Ohio
Higher
Educational
Facility
Commission
,
Judson
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
12/01/42
...........
1,360,000
1,267,742
Judson
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
12/01/45
...........
1,205,000
1,103,858
Judson
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
12/01/50
...........
2,570,000
2,307,361
Ohio
Turnpike
&
Infrastructure
Commission
,
Revenue,
Junior
Lien
,
2013
A-4
,
5.75
%
,
2/15/35
.........................................................
35,000,000
41,289,839
Southeastern
Ohio
Port
Authority
,
Marietta
Area
Health
Care,
Inc.
Obligated
Group,
Revenue,
2015,
Refunding,
5%,
12/01/35
.......................................................
1,000,000
974,934
Marietta
Area
Health
Care,
Inc.
Obligated
Group,
Revenue,
2015,
Refunding,
5%,
12/01/43
.......................................................
1,000,000
910,423
Marietta
Area
Health
Care,
Inc.
Obligated
Group,
Revenue,
2015,
Refunding,
5.5%,
12/01/43
.......................................................
1,300,000
1,301,942
b
State
of
Ohio
,
Aultman
Health
Foundation
Obligated
Group,
Revenue,
144A,
2018,
Refunding,
5%,
12/01/38
.......................................................
5,000,000
4,617,299
Aultman
Health
Foundation
Obligated
Group,
Revenue,
144A,
2018,
Refunding,
5%,
12/01/48
.......................................................
15,195,000
13,344,381
158,885,941
Oklahoma
0.2%
Tulsa
County
Industrial
Authority
,
Montereau
Obligated
Group,
Revenue,
2017,
Refunding,
5.25%,
11/15/37
.......
1,000,000
1,008,201
Montereau
Obligated
Group,
Revenue,
2017,
Refunding,
5.25%,
11/15/45
.......
10,280,000
10,013,169
11,021,370
Oregon
0.4%
Clackamas
County
Hospital
Facility
Authority
,
Rose
Villa,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5.125%,
11/15/40
.
500,000
462,914
Rose
Villa,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5.25%,
11/15/50
..
1,250,000
1,108,667
Rose
Villa,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5.375%,
11/15/55
.
1,500,000
1,331,161
Hospital
Facilities
Authority
of
Multnomah
County
Oregon
,
Mirabella
at
South
Waterfront,
Revenue,
2014
A,
Refunding,
5.4%,
10/01/44
.....
3,000,000
2,670,692
Mirabella
at
South
Waterfront,
Revenue,
2014
A,
Refunding,
5.5%,
10/01/49
.....
5,500,000
4,864,814
Franklin
Tax-Free
Trust
Schedule
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)
Oregon
(continued)
Polk
County
Hospital
Facility
Authority
,
Dallas
Mennonite
Retirement
Community
Obligated
Group
,
Revenue
,
2020
A
,
5.125
%
,
7/01/55
.......................
$
3,500,000
$
2,825,104
Yamhill
County
Hospital
Authority
,
Friendsview
Manor
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
11/15/51
..
4,325,000
3,251,799
Friendsview
Manor
Obligated
Group,
Revenue,
2021
A,
Refunding,
5%,
11/15/56
..
6,115,000
4,483,999
20,999,150
Pennsylvania
2.0%
b
Allentown
Neighborhood
Improvement
Zone
Development
Authority
,
Revenue,
144A,
2017,
5%,
5/01/32
....................................
11,975,000
12,133,309
Revenue,
144A,
2018,
5%,
5/01/42
....................................
3,245,000
3,151,918
Revenue,
144A,
2018,
5.375%,
5/01/42
.................................
5,000,000
4,955,348
Revenue,
144A,
2022,
5.25%,
5/01/42
..................................
6,275,000
6,104,599
b
Chester
County
Industrial
Development
Authority
,
Borough
of
Phoenixville
Steelpointe
Neighborhood
Improvement
District,
Special
Assessment,
144A,
2020,
4.75%,
3/01/50
..............................
4,245,000
3,476,572
Woodlands
at
Greystone
Neighborhood
Improvement
District,
Special
Assessment,
144A,
2018,
5%,
3/01/38
...........................................
325,000
313,674
Woodlands
at
Greystone
Neighborhood
Improvement
District,
Special
Assessment,
144A,
2018,
5.125%,
3/01/48
.......................................
1,000,000
919,389
Dallas
Area
Municipal
Authority
,
Misericordia
University,
Revenue,
2019,
Refunding,
5%,
5/01/39
..............
1,100,000
1,047,889
Misericordia
University,
Revenue,
2019,
Refunding,
5%,
5/01/48
..............
4,000,000
3,679,312
Franklin
County
Industrial
Development
Authority
,
Menno-Haven,
Inc.
Obligated
Group,
Revenue,
2018,
Refunding,
5%,
12/01/38
...
1,000,000
858,711
Menno-Haven,
Inc.
Obligated
Group,
Revenue,
2018,
Refunding,
5%,
12/01/43
...
1,200,000
990,477
Menno-Haven,
Inc.
Obligated
Group,
Revenue,
2018,
Refunding,
5%,
12/01/48
...
4,600,000
3,708,386
Menno-Haven,
Inc.
Obligated
Group,
Revenue,
2018,
Refunding,
5%,
12/01/53
...
3,050,000
2,397,467
Menno-Haven,
Inc.
Obligated
Group,
Revenue,
2019,
5%,
12/01/54
............
1,000,000
778,554
Lancaster
County
Hospital
Authority
,
Brethren
Village
Obligated
Group,
Revenue,
2017,
Refunding,
5.125%,
7/01/37
...
1,000,000
931,144
Brethren
Village
Obligated
Group,
Revenue,
2017,
Refunding,
5.25%,
7/01/41
....
3,500,000
3,243,187
Lehigh
County
Industrial
Development
Authority
,
Seven
Generations
Charter
School,
Revenue,
2021
A,
4%,
5/01/31
............
680,000
619,877
Seven
Generations
Charter
School,
Revenue,
2021
A,
4%,
5/01/51
............
2,385,000
1,707,437
Pennsylvania
Turnpike
Commission
,
Revenue,
2009
C,
AGMC
Insured,
6.25%,
6/01/33
.........................
5,000,000
5,525,435
Revenue,
B-2,
Zero
Cpn.,
12/01/37
....................................
20,000,000
18,053,720
Revenue,
B-2,
Zero
Cpn.,
12/01/40
....................................
25,075,000
22,376,331
Philadelphia
Authority
for
Industrial
Development
,
Evangelical
Services
for
the
Aging
Obligated
Group,
Revenue,
A,
Refunding,
5%,
7/01/49
........................................................
3,000,000
2,427,746
Philadelphia
Electrical
&
Technology
Charter
High
School,
Revenue,
2021
A,
4%,
6/01/51
........................................................
1,600,000
1,184,331
Philadelphia
Electrical
&
Technology
Charter
High
School,
Revenue,
2021
A,
4%,
6/01/56
........................................................
850,000
606,284
101,191,097
South
Carolina
0.8%
South
Carolina
Jobs-Economic
Development
Authority
,
b
Columbia
Portfolio
Obligated
Group,
Revenue,
144A,
2022
A-1,
Zero
Cpn.,
6/01/37
14,400,000
9,440,207
b
Columbia
Portfolio
Obligated
Group,
Revenue,
144A,
2022
A-2,
Zero
Cpn.,
6/01/52
25,550,000
16,001,894
South
Carolina
Episcopal
Home
at
Still
Hopes
Obligated
Group,
Revenue,
2017,
5%,
4/01/52
........................................................
1,750,000
1,456,333
South
Carolina
Episcopal
Home
at
Still
Hopes
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
4/01/48
............................................
3,500,000
2,972,811
Franklin
Tax-Free
Trust
Schedule
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)
South
Carolina
(continued)
South
Carolina
Jobs-Economic
Development
Authority,
(continued)
South
Carolina
Episcopal
Home
at
Still
Hopes
Obligated
Group,
Revenue,
2018
A,
Refunding,
5.25%,
4/01/53
.........................................
$
11,000,000
$
9,476,107
39,347,352
South
Dakota
0.2%
City
of
Sioux
Falls
,
Dow
Rummel
Village,
Revenue,
2016,
Refunding,
5%,
11/01/46
...............
7,110,000
6,136,593
Dow
Rummel
Village,
Revenue,
2017,
5%,
11/01/42
........................
3,000,000
2,603,083
8,739,676
Tennessee
1.3%
b
Cleveland
Housing
Authority
,
Cleveland
Forward
Phase
One
LLC,
Revenue,
144A,
2022
B,
6.25%,
4/01/41
....
1,000,000
953,477
Cleveland
Forward
Phase
Two
LLC,
Revenue,
144A,
2022
B,
6.25%,
4/01/41
....
1,000,000
953,477
Johnson
City
Health
&
Educational
Facilities
Board
,
Ballad
Health
Obligated
Group,
Revenue,
2000
A,
Refunding,
NATL
Insured,
Zero
Cpn.,
7/01/27
...................................................
19,365,000
16,425,195
Ballad
Health
Obligated
Group,
Revenue,
2000
A,
Refunding,
NATL
Insured,
Zero
Cpn.,
7/01/28
...................................................
19,400,000
15,869,107
Ballad
Health
Obligated
Group,
Revenue,
2000
A,
Refunding,
NATL
Insured,
Zero
Cpn.,
7/01/29
...................................................
19,365,000
15,254,947
Ballad
Health
Obligated
Group,
Revenue,
2000
A,
Refunding,
NATL
Insured,
Zero
Cpn.,
7/01/30
...................................................
19,370,000
14,655,160
b
Nashville
Metropolitan
Development
&
Housing
Agency
,
Fifth
+
Broadway
Redevelopment
Area
,
Tax
Allocation
,
144A,
2018
,
5.125
%
,
6/01/36
............
900,000
909,201
65,020,564
Texas
9.3%
Cedar
Bayou
Navigation
District
,
Special
Assessment
,
2020
,
6
%
,
9/15/51
.........
7,500,000
6,151,706
Central
Texas
Regional
Mobility
Authority
,
Revenue,
2010,
Zero
Cpn.,
1/01/35
....................................
3,000,000
1,871,199
Revenue,
2010,
Zero
Cpn.,
1/01/37
....................................
2,500,000
1,363,298
Revenue,
2010,
Zero
Cpn.,
1/01/38
....................................
2,405,000
1,235,759
Revenue,
2010,
Zero
Cpn.,
1/01/39
....................................
2,545,000
1,232,388
b
City
of
Anna
,
Hurricane
Creek
Public
Improvement
District,
Special
Assessment,
144A,
2022,
5.75%,
9/01/42
..................................................
972,000
967,490
Hurricane
Creek
Public
Improvement
District,
Special
Assessment,
144A,
2022,
6%,
9/01/52
........................................................
1,907,000
1,891,359
Sherley
Tract
Public
Improvement
District
No.
2,
Special
Assessment,
144A,
2021,
3.75%,
9/15/31
..................................................
300,000
253,174
Sherley
Tract
Public
Improvement
District
No.
2,
Special
Assessment,
144A,
2021,
4.5%,
9/15/31
...................................................
157,000
143,061
Sherley
Tract
Public
Improvement
District
No.
2,
Special
Assessment,
144A,
2021,
4%,
9/15/41
....................................................
867,000
720,564
Sherley
Tract
Public
Improvement
District
No.
2,
Special
Assessment,
144A,
2021,
4.25%,
9/15/51
..................................................
1,406,000
1,135,471
Sherley
Tract
Public
Improvement
District
No.
2,
Special
Assessment,
144A,
2021,
5%,
9/15/51
....................................................
503,000
445,906
b
City
of
Aubrey
,
Jackson
Ridge
Public
Improvement
District,
Special
Assessment,
144A,
2022,
5.25%,
9/01/32
..................................................
852,000
859,603
Jackson
Ridge
Public
Improvement
District,
Special
Assessment,
144A,
2022,
6%,
9/01/45
........................................................
1,803,000
1,830,824
Franklin
Tax-Free
Trust
Schedule
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)
Texas
(continued)
City
of
Celina
,
b
Celina
Hills
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4.875%,
9/01/42
........................................................
$
804,000
$
748,517
b
Celina
Hills
Public
Improvement
District,
Special
Assessment,
144A,
2022,
5%,
9/01/51
........................................................
1,120,000
1,010,179
b
Creeks
of
Legacy
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4.25%,
9/01/40
..................................................
230,000
203,408
b
Edgewood
Creek
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.75%,
9/01/31
..................................................
215,000
200,994
b
Edgewood
Creek
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.25%,
9/01/41
..................................................
500,000
428,641
b
Edgewood
Creek
Public
Improvement
District,
Special
Assessment,
144A,
2021,
5.25%,
9/01/41
..................................................
370,000
356,423
b
Edgewood
Creek
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.5%,
9/01/50
...................................................
605,000
510,917
b
Edgewood
Creek
Public
Improvement
District,
Special
Assessment,
144A,
2021,
5.5%,
9/01/50
...................................................
500,000
484,244
b
Hillside
Village
Public
Improvement
District,
Special
Assessment,
144A,
2022,
2.75%,
9/01/27
........................................................
290,000
255,193
b
Hillside
Village
Public
Improvement
District,
Special
Assessment,
144A,
2022,
3.125%,
9/01/32
.................................................
231,000
187,701
b
Hillside
Village
Public
Improvement
District,
Special
Assessment,
144A,
2022,
3.375%,
9/01/42
.................................................
866,000
635,701
e
North
Sky
Public
Improvement
District,
Special
Assessment,
2023,
4.375%,
9/01/30
440,000
436,674
b,e
North
Sky
Public
Improvement
District,
Special
Assessment,
144A,
2023,
4.875%,
9/01/30
........................................................
228,000
226,307
e
North
Sky
Public
Improvement
District,
Special
Assessment,
2023,
5.375%,
9/01/43
812,000
800,099
e
North
Sky
Public
Improvement
District,
Special
Assessment,
2023,
5.625%,
9/01/52
1,005,000
987,944
b,e
North
Sky
Public
Improvement
District,
Special
Assessment,
144A,
2023,
6.125%,
9/01/52
........................................................
999,000
982,917
b
Parks
at
Wilson
Creek
Public
Improvement
District
(The),
Special
Assessment,
144A,
2021,
2.75%,
9/01/26
.............................................
145,000
134,694
b
Parks
at
Wilson
Creek
Public
Improvement
District
(The),
Special
Assessment,
144A,
2021,
3.5%,
9/01/26
..............................................
245,000
232,287
b
Parks
at
Wilson
Creek
Public
Improvement
District
(The),
Special
Assessment,
144A,
2021,
3.25%,
9/01/31
.............................................
150,000
131,912
b
Parks
at
Wilson
Creek
Public
Improvement
District
(The),
Special
Assessment,
144A,
2021,
4%,
9/01/31
................................................
473,000
438,532
b
Parks
at
Wilson
Creek
Public
Improvement
District
(The),
Special
Assessment,
144A,
2021,
3.5%,
9/01/41
..............................................
1,205,000
983,433
b
Parks
at
Wilson
Creek
Public
Improvement
District
(The),
Special
Assessment,
144A,
2021,
4.25%,
9/01/41
.............................................
2,015,000
1,763,820
b
Parks
at
Wilson
Creek
Public
Improvement
District
(The),
Special
Assessment,
144A,
2021,
4.5%,
9/01/51
..............................................
2,501,000
2,126,236
b
Sutton
Fields
East
Public
Improvement
District,
Special
Assessment,
144A,
2022,
3.25%,
9/01/27
..................................................
227,000
205,025
b
Sutton
Fields
East
Public
Improvement
District,
Special
Assessment,
144A,
2022,
3.625%,
9/01/32
.................................................
336,000
289,018
b
Sutton
Fields
East
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4%,
9/01/43
....................................................
1,009,000
838,972
b
Sutton
Fields
East
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4.125%,
9/01/51
.................................................
1,033,000
834,584
b
Sutton
Fields
II
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4.125%,
9/01/50
.................................................
1,795,000
1,446,920
b
Sutton
Fields
II
Public
Improvement
District,
Special
Assessment,
144A,
2022,
2.875%,
9/01/27
.................................................
115,000
102,136
b
Sutton
Fields
II
Public
Improvement
District,
Special
Assessment,
144A,
2022,
3.25%,
9/01/32
..................................................
250,000
206,217
Franklin
Tax-Free
Trust
Schedule
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)
Texas
(continued)
City
of
Celina,
(continued)
b
Sutton
Fields
II
Public
Improvement
District,
Special
Assessment,
144A,
2022,
3.5%,
9/01/42
........................................................
$
1,175,000
$
877,805
b
Sutton
Fields
II
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4%,
9/01/51
........................................................
7,000,000
5,556,995
b
Wells
North
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.75%,
9/01/40
........................................................
425,000
346,269
b
Wells
North
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4%,
9/01/50
........................................................
498,000
400,989
b
Wells
South
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.125%,
9/01/30
........................................................
150,000
133,461
b
Wells
South
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4%,
9/01/40
........................................................
350,000
303,481
b
Wells
South
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4%,
9/01/50
........................................................
965,000
776,670
b
Wells
South
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3%,
9/01/31
........................................................
158,000
134,957
b
Wells
South
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.375%,
9/01/41
........................................................
379,000
296,304
b
Wells
South
Public
Improvement
District,
Special
Assessment,
144A,
2022,
5.5%,
9/01/42
........................................................
490,000
488,709
b
Wells
South
Public
Improvement
District,
Special
Assessment,
144A,
2022,
5.625%,
9/01/52
........................................................
1,314,000
1,298,135
b
City
of
Crandall
,
Cartwright
Ranch
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4%,
9/15/31
........................................................
409,000
370,364
Cartwright
Ranch
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.75%,
9/15/31
..................................................
161,000
148,860
Cartwright
Ranch
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.25%,
9/15/41
..................................................
1,000,000
864,802
Cartwright
Ranch
Public
Improvement
District,
Special
Assessment,
144A,
2021,
5%,
9/15/41
........................................................
1,144,000
1,062,821
Cartwright
Ranch
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.5%,
9/15/51
...................................................
2,000,000
1,680,985
Cartwright
Ranch
Public
Improvement
District,
Special
Assessment,
144A,
2021,
5.25%,
9/15/51
..................................................
750,000
692,773
River
Ridge
Public
Improvement
District,
Special
Assessment,
144A,
2022,
5.5%,
9/15/32
........................................................
528,000
539,519
River
Ridge
Public
Improvement
District,
Special
Assessment,
144A,
2022,
6.125%,
9/15/32
........................................................
306,000
311,386
River
Ridge
Public
Improvement
District,
Special
Assessment,
144A,
2022,
6.125%,
9/15/52
........................................................
5,000,000
5,108,426
River
Ridge
Public
Improvement
District,
Special
Assessment,
144A,
2022,
6.75%,
9/15/52
........................................................
1,750,000
1,809,552
b
City
of
Dallas
,
DHFC
-
Briscoe
Apartments
LLC
(The)
,
Revenue
,
144A,
2022
B
,
Zero
Cpn.,
12/01/62
....................................................
173,445,000
12,056,578
b
City
of
Dayton
,
Westpointe
Public
Improvement
District,
Special
Assessment,
Junior
Lien,
144A,
5.75%,
9/01/52
..................................................
1,464,000
1,433,474
Westpointe
Public
Improvement
District,
Special
Assessment,
Senior
Lien,
144A,
2022
A,
4.875%,
9/01/32
...........................................
269,000
261,825
Westpointe
Public
Improvement
District,
Special
Assessment,
Senior
Lien,
144A,
2022
A,
5.125%,
9/01/42
...........................................
764,000
732,687
Westpointe
Public
Improvement
District,
Special
Assessment,
Senior
Lien,
144A,
2022
A,
5.25%,
9/01/52
............................................
1,000,000
944,254
Franklin
Tax-Free
Trust
Schedule
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)
Texas
(continued)
b
City
of
DeSoto
,
Danieldale
Homestead
Public
Improvement
District
,
Special
Assessment
,
144A,
2023
,
5.5
%
,
9/15/50
................................
$
1,430,000
$
1,361,893
b
City
of
Elmendorf
,
Hickory
Ridge
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.375%,
9/01/31
.................................................
398,000
325,609
Hickory
Ridge
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.75%,
9/01/41
........................................................
1,205,000
921,121
Hickory
Ridge
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4%,
9/01/51
........................................................
1,172,000
913,860
b
City
of
Fate
,
Monterra
Public
Improvement
District,
Special
Assessment,
144A,
2021,
2.75%,
8/15/26
........................................................
400,000
364,912
Monterra
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.375%,
8/15/31
........................................................
711,000
608,110
Monterra
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.75%,
8/15/41
........................................................
1,871,000
1,508,736
Monterra
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4%,
8/15/51
1,765,000
1,413,059
Williamsburg
East
Public
Improvement
District,
Revenue,
144A,
2020,
4.125%,
8/15/30
........................................................
665,000
613,717
Williamsburg
East
Public
Improvement
District,
Revenue,
144A,
2020,
4.625%,
8/15/40
........................................................
1,163,000
1,035,755
Williamsburg
East
Public
Improvement
District,
Revenue,
144A,
2020,
4.875%,
8/15/50
........................................................
1,772,000
1,555,988
Williamsburg
East
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.375%,
8/15/30
.................................................
125,000
109,276
Williamsburg
East
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.875%,
8/15/40
.................................................
691,000
561,954
Williamsburg
East
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4.125%,
8/15/50
.................................................
994,000
809,278
Williamsburg
East
Public
Improvement
District,
Special
Assessment,
144A,
2022,
5.875%,
8/15/42
.................................................
1,617,000
1,601,633
Williamsburg
East
Public
Improvement
District,
Special
Assessment,
144A,
2022,
6%,
8/15/52
....................................................
2,500,000
2,517,510
Williamsburg
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2022,
4.25%,
8/15/42
..................................................
1,204,000
1,065,026
Williamsburg
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2022,
4.375%,
8/15/52
.................................................
1,100,000
937,959
b
City
of
Ferris
,
Woodstone
Public
Improvement
District
No.
2,
Special
Assessment,
144A,
2022,
3.375%,
9/01/32
.................................................
926,000
761,521
Woodstone
Public
Improvement
District
No.
2,
Special
Assessment,
144A,
2022,
3.75%,
9/01/42
..................................................
1,259,000
968,266
Woodstone
Public
Improvement
District
No.
2,
Special
Assessment,
144A,
2022,
4%,
9/01/51
........................................................
1,577,000
1,240,439
b
City
of
Fort
Worth
,
Fort
Worth
Public
Improvement
District
No.
17
Rock
Creek
Ranch,
Special
Assessment,
144A,
2017,
5%,
9/01/27
................................
1,465,000
1,445,693
Fort
Worth
Public
Improvement
District
No.
17
Rock
Creek
Ranch,
Special
Assessment,
144A,
2017,
5%,
9/01/32
................................
1,270,000
1,236,314
Fort
Worth
Public
Improvement
District
No.
17
Rock
Creek
Ranch,
Special
Assessment,
144A,
2017,
5.125%,
9/01/37
.............................
1,650,000
1,583,186
Fort
Worth
Public
Improvement
District
No.
17
Rock
Creek
Ranch,
Special
Assessment,
144A,
2018,
5%,
9/01/27
................................
1,185,000
1,169,383
Fort
Worth
Public
Improvement
District
No.
17
Rock
Creek
Ranch,
Special
Assessment,
144A,
2018,
5%,
9/01/32
................................
1,530,000
1,485,612
Fort
Worth
Public
Improvement
District
No.
17
Rock
Creek
Ranch,
Special
Assessment,
144A,
2018,
5%,
9/01/37
................................
1,975,000
1,861,406
Franklin
Tax-Free
Trust
Schedule
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)
Texas
(continued)
b
City
of
Georgetown
,
Parks
at
Westhaven
Public
Improvement
District,
Special
Assessment,
144A,
2022,
3.875%,
9/15/32
.................................................
$
409,000
$
369,696
Parks
at
Westhaven
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4.125%,
9/15/42
.................................................
1,060,000
921,817
Parks
at
Westhaven
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4.25%,
9/15/47
..................................................
716,000
611,689
b
City
of
Haslet
,
Public
Improvement
District
No.
5,
Special
Assessment,
144A,
2021,
2.625%,
9/01/26
........................................................
279,000
252,494
Public
Improvement
District
No.
5,
Special
Assessment,
144A,
2021,
3.25%,
9/01/31
150,000
124,996
Public
Improvement
District
No.
5,
Special
Assessment,
144A,
2021,
3.625%,
9/01/41
........................................................
1,271,000
976,037
City
of
Horseshoe
Bay
,
Escondido
Public
Improvement
District,
Special
Assessment,
2020,
Refunding,
3%,
10/01/30
.......................................................
500,000
430,485
Escondido
Public
Improvement
District,
Special
Assessment,
2020,
Refunding,
3.25%,
10/01/33
.................................................
435,000
366,865
City
of
Houston
Airport
System
,
United
Airlines,
Inc.
,
Revenue
,
2021
A
,
4
%
,
7/01/41
.
15,990,000
13,785,807
b
City
of
Hutto
,
Cottonwood
Creek
Public
Improvement
District,
Special
Assessment,
144A,
2021,
2.5%,
9/01/26
...................................................
239,000
216,570
Cottonwood
Creek
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.125%,
9/01/31
.................................................
260,000
220,328
Cottonwood
Creek
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.5%,
9/01/41
...................................................
1,038,000
805,889
Durango
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2021,
2.75%,
9/01/26
..................................................
171,000
156,308
Durango
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.5%,
9/01/31
........................................................
392,000
337,782
Durango
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.875%,
9/01/41
.................................................
1,000,000
807,098
Durango
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4%,
9/01/56
........................................................
3,479,000
2,700,686
Emory
Crossing
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.25%,
9/01/31
..................................................
206,000
174,889
Emory
Crossing
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.625%,
9/01/41
.................................................
519,000
408,983
Emory
Crossing
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4%,
9/01/56
........................................................
1,146,000
889,699
b
City
of
Justin
,
Timberbrook
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2021,
3%,
9/01/31
....................................................
500,000
429,366
Timberbrook
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2021,
3.375%,
9/01/41
.................................................
2,812,000
2,182,552
b
City
of
Kaufman
,
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2021,
3.125%,
9/15/31
........................................................
230,000
192,343
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2021,
3.625%,
9/15/41
........................................................
570,000
441,365
City
of
Kyle
,
b
6
Creeks
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.125%,
9/01/30
........................................................
400,000
340,109
b
6
Creeks
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.625%,
9/01/40
........................................................
1,310,000
1,039,632
b
6
Creeks
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.5%,
9/01/44
........................................................
1,380,000
1,029,725
Franklin
Tax-Free
Trust
Schedule
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)
Texas
(continued)
City
of
Kyle,
(continued)
b
6
Creeks
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4%,
9/01/46
$
375,000
$
306,150
b
6
Creeks
Public
Improvement
District,
Special
Assessment,
144A,
2021,
2.75%,
9/01/26
........................................................
224,000
200,609
b
6
Creeks
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.375%,
9/01/31
........................................................
530,000
445,022
b
6
Creeks
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.75%,
9/01/41
........................................................
1,428,000
1,113,419
b
6
Creeks
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4%,
9/01/46
1,000,000
810,290
b
6
Creeks
Public
Improvement
District,
Special
Assessment,
144A,
2023,
5.25%,
9/01/43
........................................................
2,250,000
2,167,974
b
6
Creeks
Public
Improvement
District,
Special
Assessment,
144A,
2023,
5.125%,
9/01/46
........................................................
1,179,000
1,139,930
b
6
Creeks
Public
Improvement
District,
Special
Assessment,
144A,
2023,
5.5%,
9/01/47
........................................................
1,396,000
1,350,438
Kyle
57
Public
Improvement
District,
Special
Assessment,
2022,
4.75%,
9/01/32
..
400,000
389,564
Kyle
57
Public
Improvement
District,
Special
Assessment,
2022,
5%,
9/01/42
.....
2,105,000
1,999,925
b
Plum
Creek
North
Public
Improvement
District,
Special
Assessment,
144A,
2022,
3.875%,
9/01/32
.................................................
500,000
453,893
b
Plum
Creek
North
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4.125%,
9/01/41
.................................................
1,185,000
1,045,754
b
Plum
Creek
North
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4.625%,
9/01/41
.................................................
501,000
458,399
City
of
Lago
Vista
,
Tessera
on
Lake
Travis
Public
Improvement
District,
Special
Assessment,
2020,
Refunding,
3.125%,
9/01/30
........................................
300,000
268,671
Tessera
on
Lake
Travis
Public
Improvement
District,
Special
Assessment,
2020,
Refunding,
3.75%,
9/01/42
.........................................
1,045,000
854,479
b
Tessera
on
Lake
Travis
Public
Improvement
District,
Special
Assessment,
144A,
2020
A,
Refunding,
5%,
9/01/30
.....................................
2,000,000
1,863,604
b
Tessera
on
Lake
Travis
Public
Improvement
District,
Special
Assessment,
144A,
2020
A,
Refunding,
5.125%,
9/01/35
..................................
2,070,000
1,863,012
b
Tessera
on
Lake
Travis
Public
Improvement
District,
Special
Assessment,
144A,
2020
A,
Refunding,
5.5%,
9/01/40
....................................
2,715,000
2,435,234
b
City
of
Lavon
,
Elevon
Public
Improvement
District,
Special
Assessment,
144A,
2022,
3.5%,
9/15/27
600,000
551,736
Elevon
Public
Improvement
District,
Special
Assessment,
144A,
2022,
3.75%,
9/15/27
........................................................
305,000
277,099
Elevon
Public
Improvement
District,
Special
Assessment,
144A,
2022,
3.875%,
9/15/32
........................................................
1,000,000
872,275
Elevon
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4.125%,
9/15/32
........................................................
455,000
407,168
Elevon
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4%,
9/15/42
2,259,000
1,868,161
Elevon
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4.375%,
9/15/42
........................................................
1,000,000
851,567
Elevon
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4.125%,
9/15/52
........................................................
5,295,000
4,160,394
Elevon
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4.5%,
9/15/52
1,495,000
1,233,529
Lakepointe
Public
Improvement
District,
Special
Assessment,
144A,
2022,
6.125%,
9/15/52
........................................................
1,000,000
1,013,656
City
of
Leander
,
Oak
Creek
Public
Improvement
District
,
Special
Assessment
,
2020
,
Refunding
,
3.25
%
,
9/01/32
...........................................
530,000
460,355
b
City
of
Liberty
Hill
,
Butler
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2022,
2.625%,
9/01/27
........................................................
550,000
497,997
Butler
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2022,
3.5%,
9/01/27
........................................................
225,000
206,874
Franklin
Tax-Free
Trust
Schedule
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)
Texas
(continued)
b
City
of
Liberty
Hill,
(continued)
Butler
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2022,
3.125%,
9/01/32
........................................................
$
750,000
$
636,307
Butler
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2022,
3.875%,
9/01/32
........................................................
275,000
239,600
Butler
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2022,
3.375%,
9/01/42
........................................................
1,771,000
1,257,556
Butler
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4.125%,
9/01/42
........................................................
1,097,000
889,922
Butler
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4%,
9/01/52
........................................................
2,500,000
1,771,334
Butler
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4.375%,
9/01/52
........................................................
1,705,000
1,338,056
Summerlyn
West
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.125%,
9/01/30
.................................................
250,000
216,067
Summerlyn
West
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4%,
9/01/40
........................................................
845,000
726,786
Summerlyn
West
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4%,
9/01/54
........................................................
1,890,000
1,450,649
b
City
of
Manor
,
Manor
Heights
Public
Improvement
District,
Special
Assessment,
144A,
2021,
2.5%,
9/15/26
........................................................
110,000
97,832
Manor
Heights
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.125%,
9/15/26
.................................................
210,000
188,006
Manor
Heights
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.125%,
9/15/31
.................................................
250,000
206,528
Manor
Heights
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.75%,
9/15/31
........................................................
310,000
261,613
Manor
Heights
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.5%,
9/15/41
........................................................
700,000
528,753
Manor
Heights
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.125%,
9/15/41
.................................................
830,000
701,814
Manor
Heights
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4%,
9/15/51
........................................................
1,000,000
796,782
Manor
Heights
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.375%,
9/15/51
.................................................
1,225,000
1,004,615
b
City
of
Marble
Falls
,
Thunder
Rock
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.875%,
9/01/31
.................................................
350,000
309,182
Thunder
Rock
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.625%,
9/01/31
.................................................
150,000
136,155
Thunder
Rock
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.125%,
9/01/41
.................................................
1,000,000
853,577
Thunder
Rock
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.875%,
9/01/41
.................................................
450,000
393,665
Thunder
Rock
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.375%,
9/01/51
.................................................
1,470,000
1,215,979
Thunder
Rock
Public
Improvement
District,
Special
Assessment,
144A,
2021,
5.125%,
9/01/51
.................................................
620,000
563,406
b
City
of
Mclendon-Chisholm
,
Sonoma
Public
Improvement
District,
Special
Assessment,
144A,
2021,
2.625%,
9/15/26
........................................................
155,000
140,414
Sonoma
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.625%,
9/15/41
........................................................
620,000
481,110
Sonoma
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4%,
9/15/51
865,000
686,569
Sonoma
Public
Improvement
District,
Special
Assessment,
144A,
2022,
5.375%,
9/15/32
........................................................
250,000
248,431
Franklin
Tax-Free
Trust
Schedule
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)
Texas
(continued)
b
City
of
Mclendon-Chisholm,
(continued)
Sonoma
Public
Improvement
District,
Special
Assessment,
144A,
2022,
5.75%,
9/15/52
........................................................
$
2,700,000
$
2,614,297
b
City
of
Midlothian
,
Redden
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.5%,
9/15/31
........................................................
410,000
353,175
Redden
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.125%,
9/15/31
.................................................
230,000
209,929
Redden
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.875%,
9/15/41
.................................................
1,105,000
894,647
Redden
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.5%,
9/15/41
........................................................
420,000
367,569
Redden
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.125%,
9/15/51
.................................................
1,635,000
1,324,164
Redden
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.75%,
9/15/51
..................................................
610,000
520,406
Westside
Preserve
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4.75%,
9/15/32
..................................................
625,000
601,777
Westside
Preserve
Public
Improvement
District,
Special
Assessment,
144A,
2022,
5.5%,
9/15/32
...................................................
309,000
300,294
Westside
Preserve
Public
Improvement
District,
Special
Assessment,
144A,
2022,
5.25%,
9/15/42
..................................................
1,516,000
1,437,908
Westside
Preserve
Public
Improvement
District,
Special
Assessment,
144A,
2022,
6%,
9/15/42
....................................................
750,000
741,483
Westside
Preserve
Public
Improvement
District,
Special
Assessment,
144A,
2022,
5.375%,
9/15/52
.................................................
2,509,000
2,360,737
Westside
Preserve
Public
Improvement
District,
Special
Assessment,
144A,
2022,
6.125%,
9/15/52
.................................................
1,410,000
1,399,486
b
City
of
New
Braunfels
,
Solms
Landing
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.625%,
9/01/26
.................................................
220,000
204,936
Solms
Landing
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.25%,
9/01/31
..................................................
320,000
291,044
Solms
Landing
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.5%,
9/01/41
........................................................
882,000
756,192
Solms
Landing
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.75%,
9/01/51
..................................................
1,454,000
1,224,329
b
City
of
Oak
Point
,
Oak
Point
Public
Improvement
District
No.
2,
Special
Assessment,
144A,
2020,
3.25%,
9/01/30
..................................................
300,000
264,520
Oak
Point
Public
Improvement
District
No.
2,
Special
Assessment,
144A,
2020,
3.75%,
9/01/40
..................................................
1,170,000
968,977
Oak
Point
Public
Improvement
District
No.
2,
Special
Assessment,
144A,
2020,
4%,
9/01/50
........................................................
1,060,000
848,699
Wildridge
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2021,
2.75%,
9/01/31
..................................................
160,000
132,505
Wildridge
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2021,
3.125%,
9/01/41
.................................................
643,000
475,595
Wildridge
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2021,
4%,
9/01/51
........................................................
987,000
792,901
b
City
of
Pilot
Point
,
Creekview
Public
Improvement
District,
Special
Assessment,
144A,
2022,
5.25%,
9/15/32
........................................................
500,000
498,965
Creekview
Public
Improvement
District,
Special
Assessment,
144A,
2022,
5.75%,
9/15/32
........................................................
200,000
199,125
Creekview
Public
Improvement
District,
Special
Assessment,
144A,
2022,
5.5%,
9/15/42
........................................................
1,550,000
1,517,286
Franklin
Tax-Free
Trust
Schedule
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)
Texas
(continued)
b
City
of
Pilot
Point,
(continued)
Creekview
Public
Improvement
District,
Special
Assessment,
144A,
2022,
5.625%,
9/15/52
........................................................
$
2,753,000
$
2,687,107
Creekview
Public
Improvement
District,
Special
Assessment,
144A,
2022,
6.125%,
9/15/52
........................................................
2,078,000
2,096,330
Mobberly
Public
Improvement
District,
Special
Assessment,
144A,
2022,
5.125%,
9/15/32
........................................................
500,000
497,754
Mobberly
Public
Improvement
District,
Special
Assessment,
144A,
2022,
5.625%,
9/15/32
........................................................
810,000
816,943
Mobberly
Public
Improvement
District,
Special
Assessment,
144A,
2022,
5.5%,
9/15/48
........................................................
4,026,000
3,950,109
Mobberly
Public
Improvement
District,
Special
Assessment,
144A,
2022,
6%,
9/15/52
4,001,000
4,029,239
Mobberly
Public
Improvement
District,
Special
Assessment,
144A,
2022,
6.5%,
9/15/52
........................................................
1,600,000
1,624,715
b
City
of
Plano
,
Collin
Creek
East
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.375%,
9/15/51
.................................................
7,750,000
6,250,348
Collin
Creek
West
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4%,
9/15/51
....................................................
2,343,000
1,839,815
b
City
of
Princeton
,
Arcadia
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2020,
2.875%,
9/01/25
.................................................
97,000
92,436
Arcadia
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.375%,
9/01/30
.................................................
180,000
161,427
Arcadia
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.875%,
9/01/40
.................................................
650,000
542,132
Arcadia
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4.125%,
9/01/50
.................................................
930,000
767,162
Arcadia
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2022,
3.75%,
9/01/27
........................................................
201,000
191,721
Arcadia
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4%,
9/01/32
........................................................
280,000
263,075
Arcadia
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4.25%,
9/01/42
........................................................
752,000
667,321
Arcadia
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4.375%,
9/01/52
.................................................
1,139,000
974,303
Brookside
Public
Improvement
District,
Special
Assessment,
144A,
2021,
2.5%,
9/01/26
........................................................
84,000
76,644
Brookside
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3%,
9/01/31
........................................................
126,000
107,405
Brookside
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.375%,
9/01/41
........................................................
325,000
248,451
Brookside
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4%,
9/01/51
........................................................
431,000
346,348
Eastridge
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4.75%,
9/01/32
........................................................
382,000
377,975
Eastridge
Public
Improvement
District,
Special
Assessment,
144A,
2022,
5.125%,
9/01/42
........................................................
850,000
824,687
Eastridge
Public
Improvement
District,
Special
Assessment,
144A,
2022,
5.25%,
9/01/52
........................................................
1,376,000
1,304,963
e
Whitewing
Trails
Public
Improvement
District
No.
2,
Special
Assessment,
144A,
2023,
4.25%,
9/01/30
.............................................
250,000
247,315
e
Whitewing
Trails
Public
Improvement
District
No.
2,
Special
Assessment,
144A,
2023,
5.125%,
9/01/43
............................................
1,100,000
1,072,084
e
Whitewing
Trails
Public
Improvement
District
No.
2,
Special
Assessment,
144A,
2023,
5.375%,
9/01/53
............................................
2,041,000
1,990,214
Winchester
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.25%,
9/01/30
........................................................
200,000
177,582
Franklin
Tax-Free
Trust
Schedule
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)
Texas
(continued)
b
City
of
Princeton,
(continued)
Winchester
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.75%,
9/01/40
........................................................
$
470,000
$
384,120
Winchester
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4%,
9/01/50
........................................................
675,000
543,417
Winchester
Public
Improvement
District,
Special
Assessment,
144A,
2021,
2.875%,
9/01/31
........................................................
110,000
93,048
Winchester
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.25%,
9/01/41
........................................................
518,000
387,055
Winchester
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4%,
9/01/51
........................................................
616,000
494,779
Winchester
Public
Improvement
District
No.
2,
Special
Assessment,
144A,
2022,
4.75%,
9/01/32
..................................................
461,000
456,488
Winchester
Public
Improvement
District
No.
2,
Special
Assessment,
144A,
2022,
5.125%,
9/01/42
.................................................
1,011,000
981,287
Winchester
Public
Improvement
District
No.
2,
Special
Assessment,
144A,
2022,
5.25%,
9/01/52
..................................................
2,220,000
2,120,771
b
City
of
Red
Oak
,
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2021,
2.625%,
9/15/26
........................................................
150,000
135,401
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2021,
3.125%,
9/15/31
........................................................
354,000
293,976
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2021,
3.375%,
9/15/41
........................................................
500,000
376,021
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2021,
4%,
9/15/51
.
665,000
531,304
b
City
of
Rowlett
,
Trails
at
Cottonwood
Creek
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.125%,
9/15/31
............................................
200,000
176,721
Trails
at
Cottonwood
Creek
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.75%,
9/15/31
.............................................
300,000
273,491
Trails
at
Cottonwood
Creek
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.75%,
9/15/41
.............................................
820,000
673,232
Trails
at
Cottonwood
Creek
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.125%,
9/15/41
............................................
600,000
518,730
Trails
at
Cottonwood
Creek
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4%,
9/15/51
................................................
1,172,000
936,374
Trails
at
Cottonwood
Creek
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.25%,
9/15/51
.............................................
1,000,000
827,887
b
City
of
Royse
City
,
Creekshaw
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.375%,
9/15/30
........................................................
450,000
404,150
Creekshaw
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.625%,
9/15/30
........................................................
225,000
201,353
Creekshaw
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4.375%,
9/15/30
........................................................
210,000
199,349
Creekshaw
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.875%,
9/15/40
........................................................
1,190,000
995,126
Creekshaw
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4.125%,
9/15/40
........................................................
590,000
516,060
Creekshaw
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4.875%,
9/15/40
........................................................
375,000
346,818
Creekshaw
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4.125%,
9/15/50
........................................................
1,780,000
1,456,785
Creekshaw
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4.375%,
9/15/50
........................................................
715,000
608,347
Creekshaw
Public
Improvement
District,
Special
Assessment,
144A,
2020,
5.125%,
9/15/50
........................................................
575,000
528,654
Franklin
Tax-Free
Trust
Schedule
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)
Texas
(continued)
b
City
of
Royse
City,
(continued)
Creekshaw
Public
Improvement
District,
Special
Assessment,
144A,
2022,
5.875%,
9/15/42
........................................................
$
589,000
$
588,305
Creekshaw
Public
Improvement
District,
Special
Assessment,
144A,
2022,
6%,
9/15/52
........................................................
1,267,000
1,276,103
Waterscape
Public
Improvement
District,
Special
Assessment,
144A,
2019,
4.75%,
9/15/49
........................................................
1,495,000
1,372,291
b
City
of
Sachse
,
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2020,
3.25%,
9/15/30
405,000
352,653
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2020,
3.75%,
9/15/40
1,070,000
856,415
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2020,
5.375%,
9/15/40
........................................................
1,920,000
1,849,408
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2020,
4%,
9/15/50
.
1,485,000
1,192,359
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2020,
5.625%,
9/15/50
........................................................
2,235,000
2,149,130
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2022,
7%,
9/15/52
.
750,000
764,582
City
of
San
Marcos
,
Whisper
Public
Improvement
District,
Special
Assessment,
2020,
4.375%,
9/01/25
.
260,000
259,623
Whisper
Public
Improvement
District,
Special
Assessment,
2020,
4.875%,
9/01/30
.
305,000
298,503
Whisper
Public
Improvement
District,
Special
Assessment,
2020,
5.375%,
9/01/40
.
1,300,000
1,277,732
Whisper
Public
Improvement
District,
Special
Assessment,
2020,
5.625%,
9/01/50
.
1,300,000
1,276,625
b
Whisper
South
Public
Improvement
District,
Special
Assessment,
144A,
2022,
3.75%,
9/01/27
..................................................
300,000
282,863
b
Whisper
South
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4%,
9/01/32
........................................................
425,000
390,724
b
Whisper
South
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4.25%,
9/01/42
..................................................
1,221,000
1,041,018
b
Whisper
South
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4.5%,
9/01/51
........................................................
1,621,000
1,356,489
b
City
of
Santa
Fe
,
Mulberry
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4.875%,
9/01/42
.................................................
508,000
470,601
Mulberry
Farms
Public
Improvement
District,
Special
Assessment,
144A,
2022,
5%,
9/01/52
........................................................
858,000
783,984
b
City
of
Sinton
,
Somerset
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2022,
4.375%,
9/01/27
.................................................
381,000
361,885
Somerset
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2022,
4.75%,
9/01/32
..................................................
660,000
614,502
Somerset
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2022,
5.125%,
9/01/42
.................................................
1,000,000
942,150
Somerset
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2022,
5.25%,
9/01/51
..................................................
1,250,000
1,155,030
b
City
of
Tomball
,
Raburn
Reserve
Public
Improvement
District
,
Special
Assessment
,
144A,
2020
,
3.375
%
,
9/15/30
.........................................
330,000
295,704
b
City
of
Uhland
,
Watermill
Public
Improvement
District
,
Special
Assessment
,
144A,
2022
,
6.625
%
,
9/01/52
..............................................
3,000,000
3,119,940
b
City
of
Venus
,
Brahman
Ranch
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2022,
6.25%,
9/15/42
..................................................
1,000,000
991,070
Brahman
Ranch
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2022,
6.5%,
9/15/52
...................................................
1,009,000
1,007,648
Patriot
Estates
Public
Improvement
District,
Special
Assessment,
144A,
2021,
2.625%,
9/15/26
.................................................
234,000
211,551
Patriot
Estates
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.125%,
9/15/31
.................................................
250,000
210,579
Franklin
Tax-Free
Trust
Schedule
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)
Texas
(continued)
b
City
of
Venus,
(continued)
Patriot
Estates
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.375%,
9/15/41
.................................................
$
1,105,000
$
837,377
Patriot
Estates
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4%,
9/15/51
........................................................
2,024,000
1,625,939
b
City
of
Waxahachie
,
North
Grove
Public
Improvement
District,
Special
Assessment,
144A,
2022,
5.125%,
8/15/32
........................................................
302,000
302,179
North
Grove
Public
Improvement
District,
Special
Assessment,
144A,
2022,
5.5%,
8/15/52
........................................................
2,395,000
2,333,605
b
Club
Municipal
Management
District
No.
1
,
Improvement
Area
#2,
Special
Assessment,
144A,
2021,
2.5%,
9/01/26
.........
175,000
159,053
Improvement
Area
#2,
Special
Assessment,
144A,
2021,
3%,
9/01/31
...........
271,000
228,083
Improvement
Area
#2,
Special
Assessment,
144A,
2021,
3.25%,
9/01/41
........
1,012,000
761,818
Conroe
Local
Government
Corp.
,
Conroe
Convention
Center
Hotel,
Revenue,
Second
Lien,
2021
B,
3.5%,
10/01/31
.
450,000
380,292
Conroe
Convention
Center
Hotel,
Revenue,
Second
Lien,
2021
B,
5%,
10/01/50
..
1,200,000
972,213
b
County
of
Hays
,
La
Cima
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.25%,
9/15/30
........................................................
100,000
86,404
La
Cima
Public
Improvement
District,
Special
Assessment,
144A,
2020,
3.75%,
9/15/40
........................................................
800,000
640,221
La
Cima
Public
Improvement
District,
Special
Assessment,
144A,
2020,
4%,
9/15/50
1,200,000
941,898
La
Cima
Public
Improvement
District,
Special
Assessment,
144A,
2022,
5.75%,
9/15/52
........................................................
3,375,000
3,351,187
b
County
of
Medina
,
Woodlands
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.5%,
9/01/26
........................................................
135,000
122,465
Woodlands
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.125%,
9/01/31
........................................................
400,000
359,081
Woodlands
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.875%,
9/01/31
........................................................
815,000
733,511
Woodlands
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.5%,
9/01/41
........................................................
1,085,000
921,448
Woodlands
Public
Improvement
District,
Special
Assessment,
144A,
2021,
5.25%,
9/01/41
........................................................
780,000
717,891
Woodlands
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.75%,
9/01/50
........................................................
870,000
735,464
Woodlands
Public
Improvement
District,
Special
Assessment,
144A,
2021,
5.5%,
9/01/50
........................................................
1,160,000
1,075,104
b
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
8,965,000
6,649,692
Grand
Parkway
Transportation
Corp.
,
Revenue
,
2013
B
,
Zero
Cpn.,
10/01/45
......
10,000,000
10,563,909
Harris
County
Cultural
Education
Facilities
Finance
Corp.
,
Brazos
Presbyterian
Homes
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
5
%
,
1/01/48
...................
5,000,000
4,156,262
d
Mesquite
Health
Facilities
Development
Corp.
,
Christian
Care
Centers,
Inc.
Obligated
Group,
Revenue,
2014,
Refunding,
5%,
2/15/36
........................................................
1,000,000
710,000
Christian
Care
Centers,
Inc.
Obligated
Group,
Revenue,
2014,
Refunding,
5.125%,
2/15/42
........................................................
3,750,000
2,662,500
Christian
Care
Centers,
Inc.
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
2/15/35
........................................................
5,175,000
3,674,250
New
Hope
Cultural
Education
Facilities
Finance
Corp.
,
Cardinal
Bay,
Inc.,
Revenue,
D,
6%,
7/01/26
.............................
110,000
44,000
Cardinal
Bay,
Inc.,
Revenue,
D,
7%,
7/01/51
.............................
5,110,000
2,044,000
CHF-Collegiate
Housing
College
Station
I
LLC,
Revenue,
2014
A,
5%,
4/01/29
....
2,190,000
2,179,709
CHF-Collegiate
Housing
College
Station
I
LLC,
Revenue,
2014
A,
5%,
4/01/46
....
1,500,000
1,358,926
b
CityScape
Schools,
Inc.,
Revenue,
144A,
2019
A,
5%,
8/15/39
................
500,000
485,255
Franklin
Tax-Free
Trust
Schedule
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)
Texas
(continued)
New
Hope
Cultural
Education
Facilities
Finance
Corp.,
(continued)
b
CityScape
Schools,
Inc.,
Revenue,
144A,
2019
A,
5%,
8/15/51
................
$
1,570,000
$
1,454,400
Longhorn
Village
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
1/01/42
......
5,000,000
4,577,071
Longhorn
Village
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
1/01/47
......
4,595,000
4,101,354
Morningside
Ministries
Obligated
Group,
Revenue,
2020
A,
5%,
1/01/55
.........
4,100,000
3,318,810
NCCD-College
Station
Properties
LLC,
Revenue,
A,
5%,
7/01/47
..............
30,000,000
25,500,000
Presbyterian
Village
North
Obligated
Group,
Revenue,
2018,
Refunding,
5%,
10/01/39
.......................................................
2,750,000
2,375,115
Presbyterian
Village
North
Obligated
Group,
Revenue,
2018,
Refunding,
5.25%,
10/01/49
.......................................................
12,600,000
10,563,219
Presbyterian
Village
North
Obligated
Group,
Revenue,
2020
A,
5.25%,
10/01/55
...
2,500,000
2,044,466
Quality
Senior
Housing
Foundation
of
East
Texas,
Inc.,
Revenue,
2019
A-1,
5%,
12/01/39
.......................................................
325,000
302,289
Quality
Senior
Housing
Foundation
of
East
Texas,
Inc.,
Revenue,
2019
A-1,
5%,
12/01/49
.......................................................
1,180,000
1,015,292
Quality
Senior
Housing
Foundation
of
East
Texas,
Inc.,
Revenue,
Second
Tier,
2019
B,
5.5%,
12/01/54
................................................
15,180,000
13,653,338
Quality
Senior
Housing
Foundation
of
East
Texas,
Inc.,
Revenue,
Third
Tier,
2019
C,
6%,
12/01/54
...................................................
6,490,000
5,871,310
Wesleyan
Homes
Obligated
Group,
Revenue,
2014,
5.5%,
1/01/43
............
3,200,000
2,721,631
Wesleyan
Homes
Obligated
Group,
Revenue,
2014,
5.5%,
1/01/49
............
1,000,000
817,769
Wesleyan
Homes
Obligated
Group,
Revenue,
2019,
Refunding,
5%,
1/01/50
.....
1,180,000
878,202
Wesleyan
Homes
Obligated
Group,
Revenue,
2019,
Refunding,
5%,
1/01/55
.....
4,400,000
3,200,220
b
North
Parkway
Municipal
Management
District
No.
1
,
Special
Assessment,
144A,
2021,
3.625%,
9/15/26
.........................
1,000,000
955,525
Special
Assessment,
144A,
2021,
4.25%,
9/15/31
.........................
1,500,000
1,426,586
Special
Assessment,
144A,
2021,
4.75%,
9/15/41
.........................
5,000,000
4,644,275
Special
Assessment,
144A,
2021,
5%,
9/15/51
............................
6,250,000
5,726,129
City
of
Celina
Legacy
Hills
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.625%,
9/15/31
............................................
250,000
221,965
City
of
Celina
Legacy
Hills
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4%,
9/15/41
................................................
1,000,000
856,187
City
of
Celina
Legacy
Hills
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4.25%,
9/15/51
.............................................
1,160,000
968,416
North
Texas
Tollway
Authority
,
Special
Projects
System,
Revenue,
2011
B,
Pre-Refunded,
Zero
Cpn.,
9/01/37
....
7,500,000
3,690,508
Special
Projects
System,
Revenue,
2011
C,
Pre-Refunded,
Zero
Cpn.,
9/01/43
....
10,000,000
12,519,261
b
Northwood
Municipal
Utility
District
No.
1
,
GO,
144A,
2020,
Refunding,
3.5%,
8/01/25
..............................
765,000
744,261
GO,
144A,
2020,
Refunding,
4%,
8/01/31
................................
1,070,000
1,070,572
b
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
B
,
6
%
,
12/01/52
..............
5,075,000
3,837,337
d
Red
River
Health
Facilities
Development
Corp.
,
Eden
Home,
Inc.
Obligated
Group
,
Revenue
,
2012
,
7.25
%
,
12/15/42
......................................
11,000,000
6,600,000
Texas
Transportation
Commission
,
State
Highway
249
System,
Revenue,
First
Tier,
2019
A,
Zero
Cpn.,
8/01/46
......
3,000,000
820,627
State
Highway
249
System,
Revenue,
First
Tier,
2019
A,
Zero
Cpn.,
8/01/47
......
5,750,000
1,483,350
State
Highway
249
System,
Revenue,
First
Tier,
2019
A,
Zero
Cpn.,
8/01/51
......
3,500,000
710,602
State
Highway
249
System,
Revenue,
First
Tier,
2019
A,
Zero
Cpn.,
8/01/52
......
4,000,000
764,911
State
Highway
249
System,
Revenue,
First
Tier,
2019
A,
Zero
Cpn.,
8/01/53
......
400,000
72,205
b
Town
of
Flower
Mound
,
River
Walk
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2021,
Refunding,
2.625%,
9/01/26
........................................
675,000
615,001
River
Walk
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2021,
Refunding,
3.25%,
9/01/31
.........................................
750,000
636,138
River
Walk
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2021,
Refunding,
3.5%,
9/01/36
..........................................
800,000
651,810
Franklin
Tax-Free
Trust
Schedule
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)
b
Town
of
Flower
Mound,
(continued)
River
Walk
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2021,
Refunding,
4%,
9/01/43
............................................
$
2,450,000
$
2,041,211
b
Town
of
Lakewood
Village
,
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2022,
4.75%,
9/15/32
445,000
428,788
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2022,
5.25%,
9/15/42
1,400,000
1,329,465
Public
Improvement
District
No.
1,
Special
Assessment,
144A,
2022,
5.375%,
9/15/52
........................................................
2,400,000
2,261,405
b
Town
of
Little
Elm
,
Spiritas
East
Public
Improvement
District,
Special
Assessment,
144A,
2022,
3.25%,
9/01/27
........................................................
139,000
128,101
Spiritas
East
Public
Improvement
District,
Special
Assessment,
144A,
2022,
3.5%,
9/01/32
........................................................
205,000
174,339
Spiritas
East
Public
Improvement
District,
Special
Assessment,
144A,
2022,
3.75%,
9/01/42
........................................................
529,000
411,406
Spiritas
East
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4%,
9/01/51
........................................................
509,000
399,089
Valencia
Public
Improvement
District,
Special
Assessment,
144A,
2022,
6.125%,
9/01/32
........................................................
712,000
735,982
Valencia
Public
Improvement
District,
Special
Assessment,
144A,
2022,
6.875%,
9/01/52
........................................................
2,700,000
2,806,763
b
Travis
County
Development
Authority
,
County
of
Travis
Turner's
Crossing
Public
Improvement
District,
Special
Assessment,
144A,
2022,
4.75%,
9/01/32
........................................
302,000
298,818
County
of
Travis
Turner's
Crossing
Public
Improvement
District,
Special
Assessment,
144A,
2022,
5.375%,
9/01/42
.......................................
868,000
857,675
County
of
Travis
Turner's
Crossing
Public
Improvement
District,
Special
Assessment,
144A,
2022,
5.5%,
9/01/52
.........................................
1,244,000
1,217,355
Viridian
Municipal
Management
District
,
Viridian
Public
Improvement
District,
Special
Assessment,
2020,
2.875%,
12/01/30
.
258,000
217,541
Viridian
Public
Improvement
District,
Special
Assessment,
2020,
3.125%,
12/01/35
.
415,000
331,948
Viridian
Public
Improvement
District,
Special
Assessment,
2020,
3.375%,
12/01/40
.
486,000
371,565
Viridian
Public
Improvement
District,
Special
Assessment,
2020,
3.5%,
12/01/47
..
835,000
609,390
481,603,331
Utah
0.5%
Military
Installation
Development
Authority
,
Revenue,
2021
A-1,
4%,
6/01/52
......................................
3,000,000
2,096,671
Revenue,
2021
A-2,
4%,
6/01/36
......................................
2,250,000
1,870,884
Revenue,
2021
A-2,
4%,
6/01/41
......................................
7,215,000
5,598,746
Revenue,
2021
A-2,
4%,
6/01/52
......................................
21,745,000
15,217,619
b
Utah
Charter
School
Finance
Authority
,
Mountain
West
Montessori
Academy,
Inc.,
Revenue,
144A,
2020
A,
5%,
6/15/39
..
475,000
457,538
Mountain
West
Montessori
Academy,
Inc.,
Revenue,
144A,
2020
A,
5%,
6/15/49
..
825,000
750,911
25,992,369
Vermont
0.0%
†
Vermont
Economic
Development
Authority
,
Wake
Robin
Corp.
,
Revenue
,
2021
A
,
Refunding
,
4
%
,
5/01/45
.............................................
2,600,000
1,883,264
Virginia
0.3%
Farmville
Industrial
Development
Authority
,
Longwood
Housing
Foundation
LLC,
Revenue,
2018
A,
Refunding,
5%,
1/01/43
...
500,000
490,714
Longwood
Housing
Foundation
LLC,
Revenue,
2018
A,
Refunding,
5%,
1/01/48
...
500,000
479,383
Longwood
Housing
Foundation
LLC,
Revenue,
2020
A,
Refunding,
5%,
1/01/50
...
3,700,000
3,526,501
Longwood
Housing
Foundation
LLC,
Revenue,
2020
A,
Refunding,
5%,
1/01/59
...
2,000,000
1,861,727
Franklin
Tax-Free
Trust
Schedule
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)
Virginia
(continued)
Henrico
County
Economic
Development
Authority
,
Virginia
United
Methodist
Homes,
Inc.
Obligated
Group,
Revenue,
2019
A,
5%,
6/01/44
........................................................
$
3,550,000
$
3,209,356
Virginia
United
Methodist
Homes,
Inc.
Obligated
Group,
Revenue,
2019
A,
5%,
6/01/49
........................................................
4,065,000
3,599,065
James
City
County
Economic
Development
Authority
,
Virginia
United
Methodist
Homes
of
Williamsburg,
Inc.
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
6/01/41
.....................................
625,000
477,665
Virginia
United
Methodist
Homes
of
Williamsburg,
Inc.
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
6/01/47
.....................................
1,000,000
712,064
14,356,475
Washington
1.0%
Ocean
Shores
Local
Improvement
District
,
Special
Assessment
,
2011
,
7.25
%
,
2/01/31
835,000
930,234
f
Washington
Economic
Development
Finance
Authority
,
Propeller
Airports
Paine
Field
LLC
,
Revenue
,
A
,
Mandatory
Put
,
6.5
%
,
3/01/24
..........................
24,250,000
24,073,610
b
Washington
State
Housing
Finance
Commission
,
eliseo
Obligated
Group,
Revenue,
144A,
2021
A,
Refunding,
4%,
1/01/51
........
15,070,000
10,745,647
Presbyterian
Retirement
Communities
Northwest
Obligated
Group,
Revenue,
144A,
2019
A,
5%,
1/01/49
..............................................
2,750,000
2,096,892
Presbyterian
Retirement
Communities
Northwest
Obligated
Group,
Revenue,
144A,
2019
A,
5%,
1/01/55
..............................................
1,800,000
1,328,755
Presbyterian
Retirement
Communities
Northwest
Obligated
Group,
Revenue,
144A,
A,
Refunding,
5%,
1/01/46
.........................................
2,250,000
1,742,677
Presbyterian
Retirement
Communities
Northwest
Obligated
Group,
Revenue,
144A,
A,
Refunding,
5%,
1/01/51
.........................................
1,700,000
1,280,701
Spokane
United
Methodist
Homes
Obligated
Group,
Revenue,
144A,
2019,
5%,
1/01/55
........................................................
9,020,000
6,399,865
Spokane
United
Methodist
Homes
Obligated
Group,
Revenue,
144A,
2020
A,
5%,
1/01/51
........................................................
6,000,000
4,343,867
52,942,248
West
Virginia
0.1%
b
Monongalia
County
Commission
Excise
Tax
District
,
Revenue,
144A,
2021
A,
Refunding,
4.125%,
6/01/43
.......................
2,250,000
2,003,607
Revenue,
144A,
2021
B,
4.875%,
6/01/43
...............................
1,635,000
1,472,965
3,476,572
Wisconsin
2.6%
Public
Finance
Authority
,
2017
IAVF
Rubix
LLC,
Revenue,
2020
A,
4%,
12/01/40
.....................
1,070,000
862,008
2017
IAVF
Rubix
LLC,
Revenue,
2020
A,
4.25%,
12/01/50
...................
7,225,000
5,558,397
A&T
Real
Estate
Foundation
LLC,
Revenue,
2019
B,
5%,
6/01/49
.............
7,900,000
7,289,198
Coral
Academy
of
Science
Las
Vegas,
Revenue,
2017
A,
5%,
7/01/45
..........
2,805,000
2,775,864
Coral
Academy
of
Science
Las
Vegas,
Revenue,
2017
A,
5%,
7/01/53
..........
4,345,000
4,213,560
b
Coral
Academy
of
Science
Reno,
Revenue,
144A,
2022
A,
6%,
6/01/62
.........
1,565,000
1,516,698
b
Eno
River
Academy,
Revenue,
144A,
2020
A,
5%,
6/15/40
...................
815,000
777,715
b
Eno
River
Academy,
Revenue,
144A,
2020
A,
5%,
6/15/54
...................
1,380,000
1,223,161
b
Estancia
Valley
Classical
Academy,
Revenue,
144A,
2021
A,
Refunding,
4%,
7/01/41
1,000,000
755,543
b
Estancia
Valley
Classical
Academy,
Revenue,
144A,
2021
A,
Refunding,
4.25%,
7/01/51
........................................................
4,000,000
2,861,226
b
FAH
Tree
House
LLC,
Revenue,
144A,
2023
B,
6.625%,
2/01/46
..............
11,095,000
10,301,369
b
Friends
Homes
Obligated
Group,
Revenue,
144A,
2019,
Refunding,
5%,
9/01/39
..
1,230,000
1,142,438
b
Friends
Homes
Obligated
Group,
Revenue,
144A,
2019,
Refunding,
5%,
9/01/49
..
7,600,000
6,670,623
b
Friends
Homes
Obligated
Group,
Revenue,
144A,
2019,
Refunding,
5%,
9/01/54
..
1,920,000
1,656,948
b
Gulf
Coast
Portfolio
Obligated
Group,
Revenue,
144A,
2021,
5.25%,
12/01/23
....
13,200,000
13,200,000
b
High
Desert
Montessori
Charter
School,
Revenue,
144A,
2021
A,
5%,
6/01/36
....
300,000
279,836
Franklin
Tax-Free
Trust
Schedule
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)
Wisconsin
(continued)
Public
Finance
Authority,
(continued)
b
High
Desert
Montessori
Charter
School,
Revenue,
144A,
2021
A,
5%,
6/01/51
....
$
1,000,000
$
853,799
b
High
Desert
Montessori
Charter
School,
Revenue,
144A,
2021
A,
5%,
6/01/61
....
1,275,000
1,053,576
b
Hope
Housing
Foundation
Obligated
Group,
Revenue,
144A,
2022
C,
4.6%,
12/01/37
5,460,000
4,480,357
b
Masonic
&
Eastern
Star
Home
of
NC,
Inc.
Obligated
Group,
Revenue,
144A,
2017,
Refunding,
5%,
3/01/37
............................................
625,000
568,576
b
Masonic
&
Eastern
Star
Home
of
NC,
Inc.
Obligated
Group,
Revenue,
144A,
2017,
Refunding,
5%,
3/01/52
............................................
4,100,000
3,408,154
b
Masonic
&
Eastern
Star
Home
of
NC,
Inc.
Obligated
Group,
Revenue,
144A,
2020
A,
5.25%,
3/01/45
..................................................
1,665,000
1,476,470
b
Masonic
&
Eastern
Star
Home
of
NC,
Inc.
Obligated
Group,
Revenue,
144A,
2020
A,
5.25%,
3/01/55
..................................................
6,810,000
5,830,954
b
Ocean
Academy
Charter
School,
Revenue,
144A,
2021,
4%,
10/15/31
..........
185,000
164,736
b
Ocean
Academy
Charter
School,
Revenue,
144A,
2021,
5%,
10/15/41
..........
570,000
508,911
b
Ocean
Academy
Charter
School,
Revenue,
144A,
2021,
5%,
10/15/51
..........
1,130,000
958,621
b
Pine
Forest
2022
Obligated
Group,
Revenue,
144A,
2022,
Zero
Cpn.,
12/01/45
...
11,680,000
6,906,038
b
Signature
Preparatory,
Revenue,
144A,
2021
A,
5%,
6/15/31
.................
600,000
575,574
b
Signature
Preparatory,
Revenue,
144A,
2021
A,
5%,
6/15/51
.................
2,250,000
1,891,735
b
Signature
Preparatory,
Revenue,
144A,
2021
A,
5%,
6/15/56
.................
2,465,000
2,035,327
b
UHF
RISE
Student
Housing
LLC,
Revenue,
144A,
2021
A-2,
5.35%,
7/01/40
.....
3,000,000
2,475,058
b
UHF
RISE
Student
Housing
LLC,
Revenue,
144A,
2021
B,
5.25%,
7/01/61
.......
2,000,000
1,522,933
b
UMA
Education,
Inc.,
Revenue,
144A,
2019
A,
Refunding,
5%,
10/01/34
.........
5,220,000
5,063,560
b
UMA
Education,
Inc.,
Revenue,
144A,
2019
A,
Refunding,
5%,
10/01/39
.........
8,500,000
7,962,095
b
WFCS
Holdings
II
LLC,
Revenue,
144A,
2021
A-1,
5%,
1/01/56
...............
1,865,000
1,398,975
b,f
WV
2020
Holdings
LLC
Obligated
Group,
Revenue,
144A,
2020
A-1,
Mandatory
Put,
3.5%,
12/01/35
..................................................
2,000,000
1,617,928
b,f
WV
2020
Holdings
LLC
Obligated
Group,
Revenue,
144A,
2020
A-2,
Mandatory
Put,
4%,
12/01/35
...................................................
18,000,000
15,085,562
Wisconsin
Health
&
Educational
Facilities
Authority
,
Chiara
Communities,
Inc.,
Revenue,
2018
C,
6%,
7/01/28
...................
175,000
149,810
Chiara
Communities,
Inc.,
Revenue,
2018
C,
6.5%,
7/01/33
..................
300,000
239,011
Chiara
Communities,
Inc.,
Revenue,
2018
C,
7%,
7/01/43
...................
1,000,000
716,435
Chiara
Communities,
Inc.,
Revenue,
2018
C,
7.5%,
7/01/53
..................
6,620,000
4,830,277
HOPE
Christian
Schools
Obligated
Group,
Revenue,
2021,
4%,
12/01/41
........
850,000
656,140
HOPE
Christian
Schools
Obligated
Group,
Revenue,
2021,
4%,
12/01/51
........
1,000,000
699,255
HOPE
Christian
Schools
Obligated
Group,
Revenue,
2021,
4%,
12/01/56
........
1,000,000
672,695
134,887,146
U.S.
Territories
10.0%
District
of
Columbia
0.8%
District
of
Columbia
,
Tobacco
Settlement
Financing
Corp.,
Revenue,
2001,
6.5%,
5/15/33
...........
2,900,000
2,966,622
Tobacco
Settlement
Financing
Corp.,
Revenue,
2002,
Zero
Cpn.,
6/15/46
........
175,000,000
39,370,205
42,336,827
Pacific
Islands
0.1%
Northern
Mariana
Island
Ports
Authority
,
Revenue
,
1998
A
,
6.6
%
,
3/15/28
.........
7,960,000
7,681,655
Puerto
Rico
9.1%
Children's
Trust
Fund
,
Revenue,
5.5%,
5/15/39
.............................................
7,500,000
7,500,436
Revenue,
2002,
5.625%,
5/15/43
......................................
2,500,000
2,525,134
Commonwealth
of
Puerto
Rico
,
g
GO,
FRN,
Zero
Cpn.,
11/01/43
........................................
1
1
GO,
2022
A-1,
5.375%,
7/01/25
.......................................
1
1
GO,
2022
A-1,
5.625%,
7/01/27
.......................................
1,724,925
1,781,889
GO,
2022
A-1,
5.625%,
7/01/29
.......................................
1,696,941
1,770,586
Franklin
Tax-Free
Trust
Schedule
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)
U.S.
Territories
(continued)
Puerto
Rico
(continued)
Commonwealth
of
Puerto
Rico,
(continued)
GO,
2022
A-1,
5.75%,
7/01/31
........................................
$
2,166,031
$
2,279,966
GO,
2022
A-1,
4%,
7/01/33
..........................................
3,562,950
3,192,637
GO,
2022
A-1,
4%,
7/01/35
..........................................
15,191,884
13,306,605
GO,
2022
A-1,
4%,
7/01/37
..........................................
31,512,915
26,950,286
GO,
2022
A-1,
4%,
7/01/41
..........................................
28,684,144
23,694,996
GO,
2022
A-1,
4%,
7/01/46
..........................................
21,788,775
17,350,495
GO,
2022
A-1,
Zero
Cpn.,
7/01/24
.....................................
520,047
488,113
GO,
2022
A-1,
Zero
Cpn.,
7/01/33
.....................................
2,011,366
1,146,020
GDB
Debt
Recovery
Authority
of
Puerto
Rico
,
7.5
%
,
8/20/40
...................
40,655,650
34,150,746
HTA
CL
6
Trust
,
Revenue
,
L-2028
,
5.25
%
,
7/01/38
..........................
2,572,271
2,575,996
HTA
TRRB
Custodial
Trust
,
Revenue
,
2007
N
,
5.25
%
,
7/01/36
..................
700,000
706,234
b
Puerto
Rico
Commonwealth
Aqueduct
&
Sewer
Authority
,
Revenue,
144A,
2021
B,
Refunding,
5%,
7/01/28
..........................
17,705,000
18,102,493
Revenue,
144A,
2021
B,
Refunding,
5%,
7/01/33
..........................
4,295,000
4,306,313
Revenue,
144A,
2021
B,
Refunding,
5%,
7/01/37
..........................
35,000,000
34,400,429
Revenue,
144A,
2021
B,
Refunding,
4%,
7/01/42
..........................
2,500,000
2,145,015
Revenue,
Senior
Lien,
144A,
2020
A,
Refunding,
5%,
7/01/47
................
15,000,000
14,487,060
d
Puerto
Rico
Electric
Power
Authority
,
Revenue,
1,
10%,
1/01/21
...........................................
6,000,000
4,357,500
Revenue,
2013
A,
7.25%,
7/01/30
.....................................
25,000,000
18,000,000
Revenue,
2013
A,
6.75%,
7/01/36
.....................................
29,750,000
21,420,000
Revenue,
2013
A,
7%,
7/01/43
........................................
5,000,000
3,612,500
Revenue,
2016
A-4,
10%,
7/01/19
.....................................
5,500,000
3,994,375
Revenue,
2016
B-4,
10%,
7/01/19
.....................................
5,500,000
3,994,375
Revenue,
E-2,
10%,
7/01/21
.........................................
6,000,000
4,357,500
Revenue,
E-3,
10%,
1/01/22
.........................................
1,989,500
1,444,874
Revenue,
E-4,
10%,
7/01/22
.........................................
1,989,499
1,444,874
Revenue,
XX,
5.75%,
7/01/36
........................................
23,620,000
16,711,150
Revenue,
XX,
5.25%,
7/01/40
........................................
10,895,000
7,653,738
Puerto
Rico
Industrial
Tourist
Educational
Medical
&
Environmental
Control
Facilities
Financing
Authority
,
AES
Puerto
Rico
LP
,
Revenue
,
2000
A
,
6.625
%
,
6/01/26
.....
15,240,000
15,478,111
Puerto
Rico
Sales
Tax
Financing
Corp.
,
Sales
Tax,
Revenue,
A-1,
4.55%,
7/01/40
................................
393,000
367,012
Sales
Tax,
Revenue,
A-1,
5%,
7/01/58
..................................
80,515,000
74,701,817
Sales
Tax,
Revenue,
A-1,
Zero
Cpn.,
7/01/46
.............................
25,400,000
6,509,512
Sales
Tax,
Revenue,
A-1,
Zero
Cpn.,
7/01/51
.............................
241,837,000
45,629,805
Sales
Tax,
Revenue,
A-2,
4.329%,
7/01/40
...............................
22,136,000
20,115,034
Sales
Tax,
Revenue,
A-2,
4.784%,
7/01/58
...............................
7,495,000
6,699,506
469,353,134
Total
U.S.
Territories
....................................................................
519,371,616
Total
Municipal
Bonds
(Cost
$5,242,453,252)
...................................
4,927,542,611
Total
Long
Term
Investments
(Cost
$5,440,330,358)
.............................
5,112,670,939
a
a
a
a
a
Short
Term
Investments
0.3%
Municipal
Bonds
0.3%
Georgia
0.0%
†
h
Development
Authority
of
Monroe
County
(The)
,
Florida
Power
&
Light
Co.
,
Revenue
,
2002
,
Refunding
,
Daily
VRDN
and
Put
,
2.8
%
,
9/01/37
......................
2,100,000
2,100,000
Franklin
Tax-Free
Trust
Schedule
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
s
Short
Term
Investments
(continued)
a
a
Principal
Amount
a
Value
Municipal
Bonds
(continued)
New
York
0.3%
h
City
of
New
York
,
GO
,
2020
B-3
,
Daily
VRDN
and
Put
,
3.6
%
,
10/01/46
...........
$
3,700,000
$
3,700,000
h
New
York
City
Municipal
Water
Finance
Authority
,
Water
&
Sewer
System
,
Revenue
,
2022
DD
,
Refunding
,
Daily
VRDN
and
Put
,
3.6
%
,
6/15/33
...................
8,000,000
8,000,000
11,700,000
Total
Municipal
Bonds
(Cost
$13,800,000)
......................................
13,800,000
Total
Short
Term
Investments
(Cost
$13,800,000
)
................................
13,800,000
a
Total
Investments
(Cost
$5,454,130,358)
99.2%
..................................
$5,126,470,939
Other
Assets,
less
Liabilities
0.8%
.............................................
44,746,032
Net
Assets
100.0%
...........................................................
$5,171,216,971
See
Abbreviations
on
page
178
.
†
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,
2023,
the
aggregate
value
of
these
securities
was
$1,577,636,346,
representing
30.5%
of
net
assets.
c
Fair
valued
using
significant
unobservable
inputs.
See
Note
12
regarding
fair
value
measurements.
d
See
Note
7
regarding
credit
risk
and
defaulted
securities.
e
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).
f
The
maturity
date
shown
represents
the
mandatory
put
date.
g
The
coupon
rate
shown
represents
the
rate
at
period
end.
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
Highlights
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Massachusetts
Tax-Free
Income
Fund
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an
integral
part
of
these
financial
statements.
Annual
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129
a
Year
Ended
February
28,
Year
Ended
February
28,
2019
b
2023
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.48
$11.84
$12.20
$11.47
$11.39
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.23
0.22
0.28
0.31
0.16
Net
realized
and
unrealized
gains
(losses)
...........
(1.07)
(0.36)
(0.37)
0.74
0.08
Total
from
investment
operations
....................
(0.84)
(0.14)
(0.09)
1.05
0.24
Less
distributions
from:
Net
investment
income
..........................
(0.23)
(0.22)
(0.27)
(0.32)
(0.16)
Net
asset
value,
end
of
year
.......................
$10.41
$11.48
$11.84
$12.20
$11.47
Total
return
e
...................................
(7.32)%
(1.24)%
(0.71)%
9.29%
2.12%
Ratios
to
average
net
assets
f
Expenses
g
....................................
0.89%
0.88%
0.86%
0.87%
0.86%
Net
investment
income
...........................
2.20%
1.83%
2.31%
2.64%
2.88%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$54,360
$64,555
$58,926
$44,347
$20,086
Portfolio
turnover
rate
............................
11.16%
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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The
accompanying
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an
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part
of
these
financial
statements.
130
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.47
$11.83
$12.20
$11.46
$11.47
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.25
0.24
0.30
0.33
0.35
Net
realized
and
unrealized
gains
(losses)
...........
(1.06)
(0.36)
(0.38)
0.75
(0.01)
Total
from
investment
operations
....................
(0.81)
(0.12)
(0.08)
1.08
0.34
Less
distributions
from:
Net
investment
income
..........................
(0.25)
(0.24)
(0.29)
(0.34)
(0.35)
Net
asset
value,
end
of
year
.......................
$10.41
$11.47
$11.83
$12.20
$11.46
Total
return
d
...................................
(7.10)%
(1.09)%
(0.64)%
9.55%
2.98%
Ratios
to
average
net
assets
Expenses
e
....................................
0.74%
0.73%
0.72%
0.72%
0.71%
Net
investment
income
...........................
2.35%
2.00%
2.48%
2.79%
3.03%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$166,958
$218,895
$245,351
$307,452
$314,235
Portfolio
turnover
rate
............................
11.16%
21.84%
18.21%
12.59%
6.58%
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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accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
131
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.62
$11.98
$12.35
$11.60
$11.61
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.19
0.17
0.23
0.27
0.28
Net
realized
and
unrealized
gains
(losses)
...........
(1.09)
(0.36)
(0.38)
0.76
(0.01)
Total
from
investment
operations
....................
(0.90)
(0.19)
(0.15)
1.03
0.27
Less
distributions
from:
Net
investment
income
..........................
(0.19)
(0.17)
(0.22)
(0.28)
(0.28)
Net
asset
value,
end
of
year
.......................
$10.53
$11.62
$11.98
$12.35
$11.60
Total
return
d
...................................
(7.78)%
(1.54)%
(1.26)%
8.95%
2.37%
Ratios
to
average
net
assets
Expenses
e
....................................
1.28%
1.27%
1.26%
1.27%
1.26%
Net
investment
income
...........................
1.76%
1.44%
1.90%
2.24%
2.48%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$11,612
$17,988
$27,111
$31,713
$33,253
Portfolio
turnover
rate
............................
11.16%
21.84%
18.21%
12.59%
6.58%
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
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are
an
integral
part
of
these
financial
statements.
132
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.48
$11.84
$12.20
$11.46
$11.48
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.26
0.25
0.31
0.34
0.36
Net
realized
and
unrealized
gains
(losses)
...........
(1.06)
(0.35)
(0.36)
0.76
(0.02)
Total
from
investment
operations
....................
(0.80)
(0.10)
(0.05)
1.10
0.34
Less
distributions
from:
Net
investment
income
..........................
(0.26)
(0.26)
(0.31)
(0.36)
(0.36)
Net
asset
value,
end
of
year
.......................
$10.42
$11.48
$11.84
$12.20
$11.46
Total
return
....................................
(6.96)%
(0.86)%
(0.50)%
9.69%
3.01%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.61%
0.59%
0.58%
0.60%
0.59%
Expenses
net
of
waiver
and
payments
by
affiliates
d
......
0.60%
0.58%
0.57%
0.58%
0.57%
Net
investment
income
...........................
2.49%
2.13%
2.60%
2.93%
3.17%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$23,528
$20,888
$16,909
$12,458
$1,284
Portfolio
turnover
rate
............................
11.16%
21.84%
18.21%
12.59%
6.58%
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
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Massachusetts
Tax-Free
Income
Fund
(continued)
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accompanying
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are
an
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part
of
these
financial
statements.
Annual
Report
133
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.47
$11.83
$12.20
$11.46
$11.48
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.26
0.25
0.30
0.34
0.36
Net
realized
and
unrealized
gains
(losses)
...........
(1.06)
(0.36)
(0.37)
0.75
(0.02)
Total
from
investment
operations
....................
(0.80)
(0.11)
(0.07)
1.09
0.34
Less
distributions
from:
Net
investment
income
..........................
(0.26)
(0.25)
(0.30)
(0.35)
(0.36)
Net
asset
value,
end
of
year
.......................
$10.41
$11.47
$11.83
$12.20
$11.46
Total
return
....................................
(7.01)%
(0.99)%
(0.54)%
9.65%
2.98%
Ratios
to
average
net
assets
Expenses
d
....................................
0.64%
0.63%
0.61%
0.62%
0.61%
Net
investment
income
...........................
2.45%
2.10%
2.55%
2.89%
3.13%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$107,830
$109,947
$106,533
$60,927
$50,814
Portfolio
turnover
rate
............................
11.16%
21.84%
18.21%
12.59%
6.58%
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
Schedule
of
Investments,
February
28,
2023
Franklin
Massachusetts
Tax-Free
Income
Fund
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part
of
these
financial
statements.
134
a
a
Principal
Amount
a
Value
a
a
a
a
a
Corporate
Bonds
0.2%
Software
0.2%
a
Haven
at
Elgin
LLC
,
5.25
%
,
12/31/53
....................................
$
900,000
$
884,092
Total
Corporate
Bonds
(Cost
$900,000)
........................................
884,092
b
Senior
Floating
Rate
Interests
0.3%
Equity
Real
Estate
Investment
Trusts
(REITs)
0.3%
a,c
Centennial
Gardens
LP
,
Delayed
Draw
Term
Loan
,
5.579
%
,
(
1-month
USD
LIBOR
+
1.55
%
),
1/08/24
...................................................
1,000,000
1,030,291
Total
Senior
Floating
Rate
Interests
(Cost
$1,000,000)
...........................
1,030,291
Municipal
Bonds
94.0%
California
0.3%
California
Municipal
Finance
Authority
,
Revenue
,
2022
A-1
,
4.25
%
,
12/01/37
.......
1,200,000
999,380
Florida
0.6%
d
Capital
Trust
Agency,
Inc.
,
SHI
-
Lake
Osborne
LLC
,
Revenue
,
144A,
2021
A-1
,
3.68
%
,
1/01/57
.........................................................
750,000
505,601
d
Leon
County
Housing
Finance
Authority
,
Revenue
,
144A,
2022
A
,
Zero
Cpn.,
5/01/57
2,000,000
1,625,000
2,130,601
Illinois
0.8%
Metropolitan
Pier
&
Exposition
Authority
,
Revenue
,
2022
A
,
Refunding
,
4
%
,
12/15/42
.
1,750,000
1,507,866
State
of
Illinois
,
GO,
2017
D,
5%,
11/01/27
...........................................
140,000
146,738
GO,
2020
B,
5%,
10/01/29
...........................................
1,000,000
1,062,660
2,717,264
Massachusetts
86.8%
Acton
&
Boxborough
Regional
School
District
,
GO,
5%,
3/01/33
..................................................
2,095,000
2,372,229
GO,
3%,
3/01/34
..................................................
1,485,000
1,402,725
GO,
3%,
3/01/35
..................................................
2,130,000
2,000,570
Boston
Water
&
Sewer
Commission
,
Revenue,
Senior
Lien
,
2014
A
,
Pre-Refunded
,
4
%
,
11/01/28
.....................................................
4,400,000
4,473,984
City
of
Lowell
,
GO,
2020,
Refunding,
4%,
9/01/31
.....................................
2,000,000
2,132,249
GO,
2020,
Refunding,
4%,
9/01/33
.....................................
2,025,000
2,133,586
City
of
Quincy
,
GO
,
2014
,
4
%
,
6/01/32
....................................
2,565,000
2,588,534
City
of
Worcester
,
GO
,
2020
A
,
3
%
,
2/01/42
................................
1,685,000
1,362,289
Commonwealth
of
Massachusetts
,
GO,
2018
A,
5%,
1/01/47
............................................
5,000,000
5,253,831
GO,
2022
E,
5%,
11/01/52
...........................................
3,000,000
3,244,843
GO,
A,
5.25%,
4/01/42
..............................................
5,000,000
5,316,410
Revenue,
2005,
Refunding,
AGMC,
NATL
Insured,
5.5%,
1/01/34
..............
11,900,000
14,188,216
Transportation
Fund,
Revenue,
2016
B,
4%,
6/01/45
.......................
7,175,000
6,970,739
Transportation
Fund,
Revenue,
2017
A,
5%,
6/01/47
.......................
5,000,000
5,221,546
Transportation
Fund,
Revenue,
2018
A,
5%,
6/01/48
.......................
5,000,000
5,263,948
Transportation
Fund,
Revenue,
2019
A,
5%,
6/01/49
.......................
1,925,000
2,042,207
Massachusetts
Bay
Transportation
Authority
,
Sales
Tax,
Revenue,
A,
5%,
7/01/40
....................................
5,000,000
5,157,686
Sales
Tax,
Revenue,
A-1,
Refunding,
5.25%,
7/01/30
.......................
4,000,000
4,694,002
Sales
Tax,
Revenue,
Senior
Lien,
B,
Refunding,
5%,
7/01/33
.................
2,500,000
2,618,957
Massachusetts
Clean
Water
Trust
(The)
,
Revenue,
1999
A,
5.75%,
8/01/29
.....................................
250,000
250,603
Revenue,
2000-6,
5.5%,
8/01/30
......................................
65,000
65,145
Massachusetts
Development
Finance
Agency
,
Babson
College,
Revenue,
2022,
Refunding,
4%,
10/01/44
...................
700,000
641,806
Franklin
Tax-Free
Trust
Schedule
of
Investments
Franklin
Massachusetts
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)
Massachusetts
(continued)
Massachusetts
Development
Finance
Agency,
(continued)
Bentley
University,
Revenue,
2021
A,
Refunding,
4%,
7/01/37
................
$
1,000,000
$
975,435
Beth
Israel
Lahey
Health
Obligated
Group,
Revenue,
2015
F,
Refunding,
5%,
8/15/32
2,975,000
3,107,221
Beth
Israel
Lahey
Health
Obligated
Group,
Revenue,
2015
F,
Refunding,
5%,
8/15/34
5,000,000
5,201,422
Beth
Israel
Lahey
Health
Obligated
Group,
Revenue,
2016
I,
Refunding,
5%,
7/01/34
1,500,000
1,575,758
Boston
Medical
Center
Corp.
Obligated
Group,
Revenue,
2023,
Refunding,
5.25%,
7/01/52
........................................................
2,500,000
2,606,348
Brandeis
University,
Revenue,
2019
S-1,
Refunding,
5%,
10/01/38
.............
2,410,000
2,585,832
Broad
Institute,
Inc.
(The),
Revenue,
2017,
Refunding,
4%,
4/01/41
............
5,000,000
4,932,945
Dana-Farber
Cancer
Institute
Obligated
Group,
Revenue,
2016
N,
5%,
12/01/46
..
6,890,000
7,030,014
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2021
C,
4%,
11/01/46
.......................................................
1,250,000
1,115,299
Loomis
Obligated
Group,
Revenue,
2021,
4%,
1/01/41
......................
435,000
372,965
Loomis
Obligated
Group,
Revenue,
2021,
4%,
1/01/51
......................
300,000
238,038
d
Loomis
Obligated
Group,
Revenue,
144A,
2022,
Refunding,
4%,
1/01/26
........
940,000
926,611
d
Loomis
Obligated
Group,
Revenue,
144A,
2022,
Refunding,
4%,
1/01/31
........
870,000
825,513
d
Loomis
Obligated
Group,
Revenue,
144A,
2022,
Refunding,
4%,
1/01/41
........
485,000
415,835
d
Loomis
Obligated
Group,
Revenue,
144A,
2022,
Refunding,
4%,
1/01/51
........
520,000
412,599
Mass
General
Brigham,
Inc.,
Revenue,
2016
Q,
Refunding,
5%,
7/01/34
.........
5,000,000
5,242,877
Mass
General
Brigham,
Inc.,
Revenue,
2017
S-1,
Refunding,
5%,
7/01/33
.......
1,880,000
2,012,631
Mass
General
Brigham,
Inc.,
Revenue,
2017
S-1,
Refunding,
4%,
7/01/41
.......
7,500,000
7,228,068
Mass
General
Brigham,
Inc.,
Revenue,
2020
A-2,
Refunding,
4%,
7/01/41
.......
1,000,000
962,512
Merrimack
College,
Revenue,
2021
B,
4%,
7/01/42
........................
475,000
414,463
Merrimack
College,
Revenue,
2021
B,
4%,
7/01/50
........................
3,650,000
2,997,742
Merrimack
College,
Revenue,
2022,
5%,
7/01/52
..........................
1,000,000
990,206
d
National
Senior
Communities,
Inc.
Obligated
Group,
Revenue,
144A,
2018,
5%,
11/15/38
.......................................................
3,000,000
3,054,783
d
National
Senior
Communities,
Inc.
Obligated
Group,
Revenue,
144A,
2018,
5.125%,
11/15/46
.......................................................
5,000,000
5,066,479
Northeastern
University,
Revenue,
2014
A,
5%,
3/01/44
.....................
5,000,000
5,047,349
Northeastern
University,
Revenue,
2022,
Refunding,
5%,
10/01/44
.............
2,375,000
2,623,965
President
&
Trustees
of
Williams
College,
Revenue,
2017
S,
4%,
7/01/46
........
9,550,000
9,261,983
President
and
Fellows
of
Harvard
College,
Revenue,
2016
A,
Refunding,
5%,
7/15/33
5,000,000
5,336,072
Seven
Hills
Foundation
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
9/01/34
.
735,000
699,119
Seven
Hills
Foundation
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
9/01/39
.
750,000
671,088
Seven
Hills
Foundation
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
9/01/41
.
500,000
436,273
Seven
Hills
Foundation
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
9/01/48
.
1,750,000
1,440,221
Southcoast
Health
System
Obligated
Group,
Revenue,
2021
G,
Refunding,
4%,
7/01/46
........................................................
5,795,000
5,056,959
Southcoast
Health
System
Obligated
Group,
Revenue,
2021
G,
Refunding,
5%,
7/01/50
........................................................
6,590,000
6,667,218
Springfield
College,
Revenue,
2021
B,
Refunding,
4%,
6/01/50
................
2,695,000
2,187,218
Suffolk
University,
Revenue,
2021,
4%,
7/01/46
...........................
4,150,000
3,647,673
Suffolk
University,
Revenue,
2021,
4%,
7/01/51
...........................
5,000,000
4,272,937
Trustees
of
Boston
College,
Revenue,
2017
T,
Refunding,
5%,
7/01/42
..........
3,750,000
3,951,075
Trustees
of
Boston
University,
Revenue,
BB-1,
4%,
10/01/46
.................
5,000,000
4,708,768
Wellesley
College,
Revenue,
2018
L,
Refunding,
4%,
7/01/44
.................
6,160,000
6,012,150
Wheaton
College,
Revenue,
2021
I,
5%,
1/01/53
..........................
3,000,000
2,896,655
Woods
Hole
Oceanographic
Institution,
Revenue,
2018,
Refunding,
5%,
6/01/35
..
1,200,000
1,309,763
Woods
Hole
Oceanographic
Institution,
Revenue,
2018,
Refunding,
5%,
6/01/36
..
1,000,000
1,084,560
Worcester
Polytechnic
Institute,
Revenue,
2017,
Refunding,
5%,
9/01/42
........
1,090,000
1,123,194
Worcester
Polytechnic
Institute,
Revenue,
2019,
4%,
9/01/44
.................
1,350,000
1,249,171
Massachusetts
Educational
Financing
Authority
,
Revenue,
2017
B,
Refunding,
4.25%,
7/01/46
.............................
2,500,000
2,310,048
Revenue,
2021
C,
3%,
7/01/51
........................................
3,000,000
1,988,827
Franklin
Tax-Free
Trust
Schedule
of
Investments
Franklin
Massachusetts
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)
Massachusetts
(continued)
Massachusetts
Health
&
Educational
Facilities
Authority
,
Trustees
of
Boston
College
,
Revenue
,
M2
,
5.5
%
,
6/01/35
.........................................
$
8,600,000
$
10,377,134
Massachusetts
Housing
Finance
Agency
,
Revenue,
2009
C,
5.125%,
12/01/39
...................................
1,045,000
1,045,762
Revenue,
2009
C,
5.35%,
12/01/49
....................................
2,770,000
2,772,227
Revenue,
2012
F,
3.15%,
12/01/32
.....................................
105,000
99,907
Revenue,
2012
F,
3.45%,
12/01/37
.....................................
45,000
40,965
Revenue,
214,
GNMA
Insured,
2.55%,
12/01/34
...........................
1,000,000
865,076
Revenue,
214,
GNMA
Insured,
2.8%,
12/01/39
............................
2,860,000
2,299,908
Revenue,
A,
3.25%,
12/01/27
.........................................
4,000,000
3,942,680
Revenue,
A,
3.5%,
12/01/31
..........................................
5,805,000
5,739,408
Massachusetts
Port
Authority
,
Revenue,
2019
B,
5%,
7/01/44
........................................
5,000,000
5,345,949
Revenue,
2021
B,
Refunding,
5%,
7/01/39
...............................
1,175,000
1,248,608
Massachusetts
School
Building
Authority
,
Revenue,
2018
B,
5.25%,
2/15/48
.....................................
2,315,000
2,452,638
Revenue,
2019
A,
5%,
2/15/44
........................................
1,000,000
1,065,532
Revenue,
Senior
Lien,
2016
C,
Refunding,
5%,
11/15/34
....................
5,000,000
5,350,380
Massachusetts
State
College
Building
Authority
,
Revenue
,
2017
D
,
Refunding
,
4
%
,
5/01/38
.........................................................
4,350,000
4,363,857
Massachusetts
Transportation
Trust
Fund
,
Metropolitan
Highway
System,
Revenue,
2019
B-1,
Refunding,
5%,
1/01/37
......
1,015,000
1,105,077
Metropolitan
Highway
System,
Revenue,
Senior
Lien,
2019
A,
Refunding,
5%,
1/01/37
........................................................
2,750,000
2,975,859
Massachusetts
Water
Resources
Authority
,
Revenue,
2016
C,
Pre-Refunded,
5%,
8/01/40
............................
5,000,000
5,346,094
Revenue,
2018
B,
5%,
8/01/43
........................................
4,000,000
4,248,103
Revenue,
B,
Refunding,
AGMC
Insured,
5.25%,
8/01/28
.....................
5,490,000
6,196,841
Revenue,
B,
5%,
8/01/40
............................................
1,140,000
1,205,739
Revenue,
B,
5%,
8/01/42
............................................
3,145,000
3,310,135
Springfield
Water
&
Sewer
Commission
,
Revenue
,
2017
C
,
5
%
,
4/15/37
..........
1,260,000
1,339,978
Town
of
Belmont
,
GO
,
2019
,
4
%
,
3/15/45
.................................
3,020,000
2,951,637
Town
of
Braintree
,
GO,
Refunding,
5%,
5/15/27
.........................................
2,000,000
2,172,399
GO,
2019,
3%,
6/01/35
.............................................
1,765,000
1,616,300
Town
of
Natick
,
GO
,
2018
,
4
%
,
7/15/35
...................................
4,970,000
5,092,940
Town
of
Plymouth
,
GO
,
2017
,
4
%
,
5/01/47
.................................
5,000,000
4,792,110
University
of
Massachusetts
Building
Authority
,
Revenue,
2022-1,
4%,
11/01/46
.......................................
4,000,000
3,839,232
Revenue,
Senior
Lien,
1,
Pre-Refunded,
5%,
11/01/44
......................
4,000,000
4,126,438
Revenue,
Senior
Lien,
2017-1,
5.25%,
11/01/42
...........................
5,000,000
5,364,613
316,363,513
New
Jersey
0.5%
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue,
2018
A,
Refunding,
5%,
12/15/32
..............................
1,000,000
1,083,415
Revenue,
2020
AA,
4%,
6/15/35
.......................................
250,000
252,438
Revenue,
2020
AA,
3%,
6/15/50
.......................................
500,000
354,992
1,690,845
New
York
0.6%
Metropolitan
Transportation
Authority
,
Revenue,
2020
A-1,
4%,
11/15/40
.....................................
750,000
683,037
Revenue,
2020
A-1,
4%,
11/15/53
.....................................
1,900,000
1,581,342
2,264,379
Franklin
Tax-Free
Trust
Schedule
of
Investments
Franklin
Massachusetts
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)
South
Carolina
0.6%
South
Carolina
Jobs-Economic
Development
Authority
,
d
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
$
800,000
$
640,488
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
800,000
638,524
d
South
Carolina
State
Housing
Finance
&
Development
Authority
,
Garden
Oaks
LP
,
Revenue
,
144A,
2021
A
,
4.2
%
,
12/01/39
................................
1,000,000
763,899
2,042,911
Tennessee
0.1%
e
Tennessee
Energy
Acquisition
Corp.
,
Revenue
,
2021
A
,
Mandatory
Put
,
5
%
,
11/01/31
500,000
523,811
Texas
0.6%
d
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
1,100,000
815,913
Lake
Houston
Redevelopment
Authority
,
City
of
Houston
Reinvestment
Zone
No.
10
,
Revenue
,
2021
,
Refunding
,
3
%
,
9/01/37
.................................
300,000
240,250
d
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
A-2
,
5
%
,
12/01/52
............
1,400,000
1,024,235
2,080,398
Washington
0.2%
d
Washington
State
Housing
Finance
Commission
,
Madison
at
Rivers
Edge
Apartments
LLC
,
Revenue
,
144A,
2021
A
,
3.65
%
,
1/01/37
............................
800,000
640,515
Wisconsin
1.0%
d
Public
Finance
Authority
,
Revenue,
144A,
2022,
B-1,
4%,
12/28/44
................................
800,000
633,883
Gulf
Coast
Portfolio
Obligated
Group,
Revenue,
144A,
2021,
5.25%,
12/01/23
....
2,100,000
2,100,000
Pine
Forest
2022
Obligated
Group,
Revenue,
144A,
2022
A,
6.5%,
12/01/52
.....
1,000,000
989,483
3,723,366
U.S.
Territories
1.9%
Puerto
Rico
1.9%
HTA
TRRB
Custodial
Trust
,
Revenue,
2005
L,
5.25%,
7/01/41
.....................................
250,000
252,746
Revenue,
2007
N,
5.25%,
7/01/34
.....................................
5,000,000
5,039,803
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue,
2022
A,
5%,
7/01/62
........................................
253,926
235,516
Revenue,
2022
B,
Zero
Cpn.,
7/01/32
...................................
165,017
103,136
Revenue,
2022
C,
Zero
Cpn.,
7/01/53
..................................
282,277
156,712
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
485,181
Hospital
Auxilio
Mutuo
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
7/01/39
..
200,000
176,279
Puerto
Rico
Sales
Tax
Financing
Corp.
,
Sales
Tax
,
Revenue
,
A-1
,
5
%
,
7/01/58
.....
660,000
612,348
7,061,721
Total
U.S.
Territories
....................................................................
7,061,721
Total
Municipal
Bonds
(Cost
$364,801,391)
.....................................
342,238,704
Total
Long
Term
Investments
(Cost
$366,701,391)
...............................
344,153,087
a
a
a
a
a
Franklin
Tax-Free
Trust
Schedule
of
Investments
Franklin
Massachusetts
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
138
See
Abbreviations
on
page
178
.
Short
Term
Investments
4.6%
a
a
Principal
Amount
a
Value
Municipal
Bonds
4.6%
Massachusetts
4.6%
f
Massachusetts
Health
&
Educational
Facilities
Authority
,
President
and
Fellows
of
Harvard
College
,
Revenue
,
R
,
Daily
VRDN
and
Put
,
1.6
%
,
11/01/49
............
$
16,700,000
$
16,700,000
Total
Municipal
Bonds
(Cost
$16,700,000)
......................................
16,700,000
Total
Short
Term
Investments
(Cost
$16,700,000
)
................................
16,700,000
a
Total
Investments
(Cost
$383,401,391)
99.1%
...................................
$360,853,087
Other
Assets,
less
Liabilities
0.9%
.............................................
3,434,809
Net
Assets
100.0%
...........................................................
$364,287,896
a
Fair
valued
using
significant
unobservable
inputs.
See
Note
12
regarding
fair
value
measurements.
b
See
Note
1(c)
regarding
senior
floating
rate
interests.
c
The
coupon
rate
shown
represents
the
rate
inclusive
of
any
caps
or
floors,
if
applicable,
in
effect
at
period
end.
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,
2023,
the
aggregate
value
of
these
securities
was
$20,440,837,
representing
5.6%
of
net
assets.
e
The
maturity
date
shown
represents
the
mandatory
put
date.
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
Highlights
Franklin
New
Jersey
Tax-Free
Income
Fund
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
139
0
a
Year
Ended
February
28,
Year
Ended
February
28,
2019
b
2023
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
$11.46
$11.77
$11.14
$11.10
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.28
0.27
0.29
0.30
0.17
Net
realized
and
unrealized
gains
(losses)
...........
(1.08)
(0.28)
(0.32)
0.65
0.04
Total
from
investment
operations
....................
(0.80)
(0.01)
(0.03)
0.95
0.21
Less
distributions
from:
Net
investment
income
..........................
(0.27)
(0.27)
(0.28)
(0.32)
(0.17)
Net
asset
value,
end
of
year
.......................
$10.11
$11.18
$11.46
$11.77
$11.14
Total
return
e
...................................
(7.13)%
(0.18)%
(0.18)%
8.61%
1.97%
Ratios
to
average
net
assets
Expenses
f
.....................................
0.83%
0.82%
0.82%
0.82%
0.83%
Net
investment
income
...........................
2.68%
2.30%
2.50%
2.67%
3.28%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$120,101
$141,419
$118,815
$109,130
$55,866
Portfolio
turnover
rate
............................
12.46%
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.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
New
Jersey
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,
2023
2022
2021
2020
a
2019
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.16
$11.45
$11.76
$11.13
$11.11
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.29
0.28
0.30
0.32
0.38
Net
realized
and
unrealized
gains
(losses)
...........
(1.06)
(0.29)
(0.31)
0.64
0.03
Total
from
investment
operations
....................
(0.77)
(0.01)
(0.01)
0.96
0.41
Less
distributions
from:
Net
investment
income
..........................
(0.29)
(0.28)
(0.30)
(0.33)
(0.39)
Net
asset
value,
end
of
year
.......................
$10.10
$11.16
$11.45
$11.76
$11.13
Total
return
d
...................................
(6.91)%
(0.11)%
(0.03)%
8.78%
3.78%
Ratios
to
average
net
assets
Expenses
e
....................................
0.68%
0.67%
0.67%
0.67%
0.68%
Net
investment
income
...........................
2.83%
2.45%
2.67%
2.82%
3.43%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$372,268
$464,256
$516,756
$584,519
$596,817
Portfolio
turnover
rate
............................
12.46%
7.69%
15.41%
17.99%
13.26%
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)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
141
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.31
$11.60
$11.92
$11.28
$11.26
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.23
0.22
0.24
0.26
0.32
Net
realized
and
unrealized
gains
(losses)
...........
(1.08)
(0.29)
(0.32)
0.65
0.03
Total
from
investment
operations
....................
(0.85)
(0.07)
(0.08)
0.91
0.35
Less
distributions
from:
Net
investment
income
..........................
(0.23)
(0.22)
(0.24)
(0.27)
(0.33)
Net
asset
value,
end
of
year
.......................
$10.23
$11.31
$11.60
$11.92
$11.28
Total
return
d
...................................
(7.51)%
(0.66)%
(0.66)%
8.19%
3.15%
Ratios
to
average
net
assets
Expenses
e
....................................
1.23%
1.22%
1.22%
1.22%
1.23%
Net
investment
income
...........................
2.23%
1.87%
2.10%
2.27%
2.88%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$40,433
$58,632
$87,934
$117,600
$125,982
Portfolio
turnover
rate
............................
12.46%
7.69%
15.41%
17.99%
13.26%
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)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
142
a
Year
Ended
February
28,
2023
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
$11.46
$11.77
$11.14
$11.12
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.31
0.30
0.32
0.34
0.40
Net
realized
and
unrealized
gains
(losses)
...........
(1.07)
(0.29)
(0.31)
0.64
0.03
Total
from
investment
operations
....................
(0.76)
0.01
0.01
0.98
0.43
Less
distributions
from:
Net
investment
income
..........................
(0.30)
(0.30)
(0.32)
(0.35)
(0.41)
Net
asset
value,
end
of
year
.......................
$10.11
$11.17
$11.46
$11.77
$11.14
Total
return
....................................
(6.77)%
0.03%
0.11%
8.92%
3.91%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.54%
0.53%
0.53%
0.53%
0.54%
Expenses
net
of
waiver
and
payments
by
affiliates
d
......
0.54%
0.53%
0.53%
0.53%
e
0.54%
e
Net
investment
income
...........................
2.98%
2.59%
2.80%
2.96%
3.57%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$37,543
$35,920
$32,012
$33,376
$20,459
Portfolio
turnover
rate
............................
12.46%
7.69%
15.41%
17.99%
13.26%
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
Be
nefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
New
Jersey
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
143
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.17
$11.46
$11.77
$11.14
$11.12
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.30
0.30
0.31
0.33
0.39
Net
realized
and
unrealized
gains
(losses)
...........
(1.06)
(0.29)
(0.31)
0.64
0.03
Total
from
investment
operations
....................
(0.76)
0.01
—
0.97
0.42
Less
distributions
from:
Net
investment
income
..........................
(0.30)
(0.30)
(0.31)
(0.34)
(0.40)
Net
asset
value,
end
of
year
.......................
$10.11
$11.17
$11.46
$11.77
$11.14
Total
return
....................................
(6.81)%
(0.01)%
0.07%
8.88%
3.87%
Ratios
to
average
net
assets
Expenses
d
....................................
0.59%
0.57%
0.57%
0.57%
0.58%
Net
investment
income
...........................
2.97%
2.55%
2.76%
2.92%
3.53%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$191,534
$103,449
$94,236
$81,747
$75,607
Portfolio
turnover
rate
............................
12.46%
7.69%
15.41%
17.99%
13.26%
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
Schedule
of
Investments,
February
28,
2023
Franklin
New
Jersey
Tax-Free
Income
Fund
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
Corporate
Bonds
0.2%
Software
0.2%
a
Haven
at
Elgin
LLC
,
5.25
%
,
12/31/53
....................................
$
1,600,000
$
1,571,719
Total
Corporate
Bonds
(Cost
$1,600,000)
.......................................
1,571,719
Municipal
Bonds
96.3%
California
0.1%
California
Municipal
Finance
Authority
,
Revenue
,
2022
A-1
,
4.25
%
,
12/01/37
.......
1,300,000
1,082,662
Delaware
1.7%
Delaware
River
&
Bay
Authority
,
Revenue
,
2019
,
Refunding
,
4
%
,
1/01/44
.........
13,500,000
12,935,639
Florida
1.0%
Capital
Trust
Agency,
Inc.
,
Kingdom
Development
West
Palm
Beach
Portfolio
Obligated
Group,
Revenue,
2021
A-1,
3.75%,
12/01/36
.............................................
4,536,000
3,777,002
b
SHI
-
Lake
Osborne
LLC,
Revenue,
144A,
2021
A-1,
3.68%,
1/01/57
...........
850,000
573,014
b
Leon
County
Housing
Finance
Authority
,
Revenue
,
144A,
2022
A
,
Zero
Cpn
.,
5/01/57
3,650,000
2,965,625
7,315,641
Georgia
0.3%
b
Development
Authority
of
Rockdale
County
,
AHPC
Terraces
at
Fieldstone
LLC
,
Revenue
,
144A,
2021
A-1
,
3.5
%
,
12/01/36
...............................
2,650,000
2,125,572
New
Jersey
77.4%
Atlantic
County
Improvement
Authority
(The)
,
Stockton
University
,
Revenue
,
2021
A
,
AGMC
Insured
,
4
%
,
7/01/47
..........................................
1,000,000
915,428
Bergen
County
Improvement
Authority
(The)
,
Borough
of
Ridgefield,
Revenue,
2020,
4%,
10/15/42
.......................
5,205,000
5,228,977
County
of
Bergen,
Revenue,
2019,
4%,
10/15/37
..........................
3,600,000
3,667,473
County
of
Bergen,
Revenue,
2019,
4%,
10/15/38
..........................
3,745,000
3,803,572
County
of
Bergen,
Revenue,
2019,
4%,
10/15/39
..........................
3,000,000
3,039,331
Camden
County
Improvement
Authority
(The)
,
b
Camden
Prep,
Inc.,
Revenue,
144A,
2022,
5%,
7/15/52
.....................
3,000,000
2,921,430
KIPP
Cooper
Norcross
Obligated
Group,
Revenue,
2022,
6%,
6/15/47
..........
1,450,000
1,531,207
KIPP
Cooper
Norcross
Obligated
Group,
Revenue,
2022,
6%,
6/15/52
..........
2,100,000
2,207,072
City
of
Newark
,
Mass
Transit
Access
Tax,
Revenue,
2022,
AGMC
Insured,
5%,
11/15/42
.........
1,000,000
1,084,822
Mass
Transit
Access
Tax,
Revenue,
2022,
AGMC
Insured,
5.375%,
11/15/52
.....
1,500,000
1,637,422
Mass
Transit
Access
Tax,
Revenue,
2022,
AGMC
Insured,
6%,
11/15/62
.........
1,000,000
1,123,598
County
of
Middlesex
,
COP
,
1998
,
NATL
Insured
,
Zero
Cpn
.,
6/15/24
.............
1,000,000
956,569
Cumberland
County
Improvement
Authority
(The)
,
Revenue,
2014,
Pre-Refunded,
AGMC
Insured,
5%,
9/01/39
.................
2,000,000
2,056,608
County
of
Cumberland,
Revenue,
2019,
BAM
Insured,
5%,
1/15/36
............
955,000
1,029,665
County
of
Cumberland,
Revenue,
2019,
BAM
Insured,
5%,
1/15/37
............
1,000,000
1,069,963
County
of
Cumberland,
Revenue,
2019,
BAM
Insured,
5%,
1/15/38
............
1,020,000
1,088,356
County
of
Cumberland,
Revenue,
2019,
BAM
Insured,
5%,
1/15/39
............
1,070,000
1,138,101
County
of
Cumberland,
Revenue,
2019,
BAM
Insured,
5%,
1/15/44
............
5,725,000
6,014,370
Essex
County
Improvement
Authority
,
Friends
of
TEAM
Academy
Charter
School
Obligated
Group,
Revenue,
2021,
4%,
6/15/38
........................................................
1,645,000
1,501,746
Friends
of
TEAM
Academy
Charter
School
Obligated
Group,
Revenue,
2021,
4%,
6/15/51
........................................................
2,700,000
2,264,414
Friends
of
TEAM
Academy
Charter
School
Obligated
Group,
Revenue,
2021,
4%,
6/15/56
........................................................
4,925,000
4,014,741
Gloucester
County
Improvement
Authority
(The)
,
Rowan
University,
Revenue,
2015
C,
AGMC
Insured,
4%,
7/01/42
.............
2,500,000
2,438,309
Rowan
University,
Revenue,
2015
C,
5%,
7/01/44
.........................
3,500,000
3,635,401
Rowan
University,
Revenue,
2019,
4%,
7/01/37
...........................
750,000
758,343
Franklin
Tax-Free
Trust
Schedule
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
145
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
New
Jersey
(continued)
Gloucester
County
Improvement
Authority
(The),
(continued)
Rowan
University,
Revenue,
2019,
4%,
7/01/38
...........................
$
700,000
$
705,013
Rowan
University,
Revenue,
2019,
4%,
7/01/39
...........................
600,000
601,849
Rowan
University,
Revenue,
2019,
5%,
7/01/44
...........................
4,925,000
5,277,224
Rowan
University,
Revenue,
2019,
4%,
7/01/48
...........................
5,250,000
5,073,321
Hudson
County
Improvement
Authority
,
Revenue,
2019,
Refunding,
4%,
1/01/40
.................................
1,000,000
972,143
County
of
Hudson,
Revenue,
2016,
5.25%,
5/01/51
........................
6,000,000
6,240,241
Mercer
County
Improvement
Authority
(The)
,
County
of
Mercer,
Revenue,
2019,
Refunding,
4%,
4/01/31
...................
1,545,000
1,658,778
County
of
Mercer,
Revenue,
2019,
Refunding,
4%,
4/01/33
...................
1,500,000
1,603,646
Monmouth
County
Improvement
Authority
(The)
,
Revenue,
2019
A,
4%,
8/01/32
........................................
300,000
321,126
Revenue,
2019
A,
4%,
8/01/33
........................................
350,000
371,791
Revenue,
2019
A,
4%,
8/01/34
........................................
525,000
551,909
Revenue,
2019
A,
4%,
8/01/35
........................................
525,000
545,403
Revenue,
2019
A,
4%,
8/01/36
........................................
500,000
513,929
Revenue,
2019
A,
4%,
8/01/37
........................................
275,000
280,531
Revenue,
2019
A,
4%,
8/01/38
........................................
225,000
228,424
Revenue,
2019
A,
4%,
8/01/39
........................................
400,000
405,103
Revenue,
2019
B,
4%,
12/01/34
.......................................
750,000
788,431
Revenue,
2019
B,
4%,
12/01/36
.......................................
750,000
770,315
Revenue,
2019
B,
4%,
12/01/37
.......................................
500,000
509,890
Revenue,
2019
B,
4%,
12/01/38
.......................................
750,000
761,920
Revenue,
2019
B,
4%,
12/01/39
.......................................
600,000
607,993
New
Brunswick
Parking
Authority
,
Revenue
,
2016
A
,
Refunding
,
BAM
Insured
,
5
%
,
9/01/39
.........................................................
5,000,000
5,220,783
New
Jersey
Economic
Development
Authority
,
Revenue,
2021
QQQ,
4%,
6/15/39
.....................................
2,500,000
2,417,313
Revenue,
2021
QQQ,
4%,
6/15/46
.....................................
1,250,000
1,139,268
Revenue,
2021
QQQ,
4%,
6/15/50
.....................................
1,250,000
1,132,847
Middlesex
Water
Co.,
Revenue,
2019,
4%,
8/01/59
........................
6,200,000
4,966,550
Middlesex
Water
Co.,
Revenue,
2019,
5%,
8/01/59
........................
7,245,000
7,308,431
New
Jersey
Transit
Corp.,
Revenue,
2022
A,
5%,
11/01/52
...................
5,000,000
5,172,465
Port
Newark
Container
Terminal
LLC,
Revenue,
2017,
Refunding,
5%,
10/01/47
...
13,625,000
13,397,243
Provident
Group-Kean
Properties
LLC,
Revenue,
2017
A,
5%,
7/01/32
..........
640,000
640,618
Provident
Group-Kean
Properties
LLC,
Revenue,
2017
A,
5%,
7/01/37
..........
600,000
589,126
Provident
Group-Kean
Properties
LLC,
Revenue,
2017
A,
5%,
7/01/47
..........
1,500,000
1,375,508
Provident
Group-Montclair
Properties
LLC,
Revenue,
2017,
Refunding,
AGMC
Insured,
5%,
6/01/42
..............................................
6,000,000
6,119,297
Provident
Group-Rowan
Properties
LLC,
Revenue,
A,
5%,
1/01/48
.............
7,000,000
6,326,951
Rutgers
State
University
of
New
Jersey
(The),
Revenue,
2013,
Pre-Refunded,
5%,
6/15/38
........................................................
5,000,000
5,026,590
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2005
N-1,
Refunding,
NATL
Insured,
5.5%,
9/01/27
........................................
8,660,000
9,494,556
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2015
WW,
Pre-Refunded,
5%,
6/15/37
....................................................
4,760,000
4,951,186
New
Jersey
Educational
Facilities
Authority
,
Kean
University,
Revenue,
2015
H,
Refunding,
AGMC
Insured,
5%,
7/01/34
......
2,205,000
2,311,472
Kean
University,
Revenue,
2015
H,
Refunding,
AGMC
Insured,
5%,
7/01/35
......
5,000,000
5,225,643
Kean
University,
Revenue,
2017
D,
Refunding,
BAM
Insured,
4%,
9/01/38
.......
1,150,000
1,144,661
Montclair
State
University,
Inc.,
Revenue,
2014
A,
5%,
7/01/39
................
5,000,000
5,071,432
Montclair
State
University,
Inc.,
Revenue,
2014
A,
5%,
7/01/44
................
16,380,000
16,557,354
Montclair
State
University,
Inc.,
Revenue,
2015
D,
Refunding,
5%,
7/01/35
.......
2,245,000
2,312,046
Montclair
State
University,
Inc.,
Revenue,
2015
D,
Refunding,
5%,
7/01/36
.......
1,210,000
1,242,240
Montclair
State
University,
Inc.,
Revenue,
2016
B,
Refunding,
5%,
7/01/34
.......
1,325,000
1,384,689
Franklin
Tax-Free
Trust
Schedule
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.
146
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
New
Jersey
(continued)
New
Jersey
Educational
Facilities
Authority,
(continued)
Ramapo
College
of
New
Jersey,
Revenue,
2017
A,
Refunding,
AGMC
Insured,
5%,
7/01/35
........................................................
$
3,955,000
$
4,206,106
Seton
Hall
University,
Revenue,
2015
C,
Refunding,
5%,
7/01/34
..............
400,000
411,829
Seton
Hall
University,
Revenue,
2015
C,
Refunding,
5%,
7/01/37
..............
1,300,000
1,327,715
Seton
Hall
University,
Revenue,
2017
D,
Refunding,
5%,
7/01/42
..............
3,945,000
4,052,997
Seton
Hall
University,
Revenue,
2020
C,
AGMC
Insured,
3.25%,
7/01/49
........
1,150,000
873,978
Seton
Hall
University,
Revenue,
2020
C,
AGMC
Insured,
4%,
7/01/50
...........
1,850,000
1,692,149
Stevens
Institute
of
Technology
International,
Inc.,
Revenue,
1998-1,
ETM,
5%,
7/01/28
........................................................
475,000
499,792
Stevens
Institute
of
Technology
International,
Inc.,
Revenue,
2017
A,
Refunding,
5%,
7/01/36
........................................................
1,600,000
1,654,446
Stevens
Institute
of
Technology
International,
Inc.,
Revenue,
2017
A,
Refunding,
5%,
7/01/42
........................................................
9,310,000
9,465,496
Stevens
Institute
of
Technology
International,
Inc.,
Revenue,
2017
A,
Refunding,
5%,
7/01/47
........................................................
4,085,000
4,129,475
Stevens
Institute
of
Technology
International,
Inc.,
Revenue,
2020
A,
5%,
7/01/45
.
4,000,000
4,081,445
Stevens
Institute
of
Technology
International,
Inc.,
Revenue,
2020
A,
4%,
7/01/50
.
11,640,000
10,123,699
Trustees
of
Princeton
University
(The),
Revenue,
2014
A,
5%,
7/01/44
..........
15,000,000
15,270,055
New
Jersey
Health
Care
Facilities
Financing
Authority
,
AHS
Hospital
Corp.,
Revenue,
2008
A,
5%,
7/01/27
........................
220,000
220,152
AHS
Hospital
Corp.,
Revenue,
2016,
Refunding,
4%,
7/01/41
.................
10,000,000
9,600,567
AtlantiCare
Health
System
Obligated
Group,
Revenue,
2021,
4%,
7/01/37
.......
750,000
753,142
AtlantiCare
Health
System
Obligated
Group,
Revenue,
2021,
3%,
7/01/46
.......
1,000,000
760,448
Hackensack
Meridian
Health
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
7/01/37
........................................................
3,000,000
3,164,429
Hackensack
Meridian
Health
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
7/01/38
........................................................
3,000,000
3,156,968
Hackensack
Meridian
Health
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
7/01/39
........................................................
5,000,000
5,240,559
Hunterdon
Medical
Center
Obligated
Group,
Revenue,
2014
A,
Pre-Refunded,
5%,
7/01/45
........................................................
2,650,000
2,710,900
Inspira
Health
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
7/01/46
......
18,500,000
18,705,696
Inspira
Health
Obligated
Group,
Revenue,
2017
A,
5%,
7/01/42
...............
7,000,000
7,122,417
Inspira
Health
Obligated
Group,
Revenue,
2017
A,
4%,
7/01/47
...............
8,700,000
7,977,763
RWJ
Barnabas
Health
Obligated
Group,
Revenue,
2013
A,
5.5%,
7/01/43
.......
4,000,000
4,016,021
RWJ
Barnabas
Health
Obligated
Group,
Revenue,
2014
A,
5%,
7/01/43
.........
3,650,000
3,690,322
RWJ
Barnabas
Health
Obligated
Group,
Revenue,
2014
A,
Refunding,
5%,
7/01/44
15,530,000
15,698,151
RWJ
Barnabas
Health
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
7/01/43
10,000,000
10,260,150
St.
Joseph's
Healthcare
System
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
7/01/41
........................................................
5,850,000
5,653,871
St.
Luke's
Hospital
Obligated
Group,
Revenue,
2013,
Pre-Refunded,
5%,
8/15/31
..
2,935,000
2,958,569
St.
Luke's
Hospital
Obligated
Group,
Revenue,
2013,
Pre-Refunded,
5%,
8/15/34
..
1,500,000
1,512,045
Valley
Health
System
Obligated
Group,
Revenue,
2019,
4%,
7/01/35
...........
1,000,000
987,551
Valley
Health
System
Obligated
Group,
Revenue,
2019,
4%,
7/01/37
...........
3,950,000
3,869,612
Valley
Health
System
Obligated
Group,
Revenue,
2019,
4%,
7/01/39
...........
2,200,000
2,132,140
Valley
Health
System
Obligated
Group,
Revenue,
2019,
4%,
7/01/44
...........
12,000,000
11,142,047
New
Jersey
Higher
Education
Student
Assistance
Authority
,
Revenue,
2019
B,
Refunding,
3.25%,
12/01/39
............................
7,945,000
7,481,051
Revenue,
2020
C,
Refunding,
4.25%,
12/01/50
...........................
1,750,000
1,564,552
Revenue,
2021
B,
Refunding,
5%,
12/01/29
..............................
2,830,000
3,060,469
Revenue,
Senior
Lien,
2020
A,
Refunding,
3.5%,
12/01/39
...................
5,600,000
5,350,104
New
Jersey
Housing
&
Mortgage
Finance
Agency
,
Revenue,
2018
A,
Refunding,
3.95%,
11/01/43
............................
1,100,000
1,021,389
Revenue,
2019
A,
Refunding,
3%,
11/01/44
..............................
510,000
392,901
Revenue,
2019
C,
Refunding,
3.95%,
10/01/44
...........................
3,955,000
3,676,855
Revenue,
2020
E,
Refunding,
2.05%,
10/01/35
............................
4,100,000
3,309,658
Franklin
Tax-Free
Trust
Schedule
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
147
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,
2.25%,
10/01/40
............................
$
8,210,000
$
6,068,516
Revenue,
2020
E,
Refunding,
2.4%,
10/01/45
.............................
3,285,000
2,397,432
Revenue,
2020
E,
Refunding,
2.45%,
10/01/50
............................
2,460,000
1,774,716
New
Jersey
Institute
of
Technology
,
Revenue
,
2015
A
,
5
%
,
7/01/45
..............
6,000,000
6,121,210
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue,
2006
C,
AGMC
Insured,
Zero
Cpn
.,
12/15/33
.....................
10,000,000
6,543,739
Revenue,
2009
A,
Zero
Cpn
.,
12/15/32
..................................
10,000,000
6,697,222
Revenue,
2009
A,
Zero
Cpn
.,
12/15/36
..................................
500,000
267,879
Revenue,
2010
A,
Zero
Cpn
.,
12/15/29
..................................
5,000,000
3,850,501
Revenue,
2010
A,
Zero
Cpn
.,
12/15/40
..................................
4,750,000
1,992,237
Revenue,
2013
AA,
5.25%,
6/15/31
....................................
10,000,000
10,051,828
Revenue,
2019
BB,
4%,
6/15/44
.......................................
6,000,000
5,589,389
Revenue,
2020
AA,
4%,
6/15/45
.......................................
9,700,000
8,894,353
Revenue,
2020
AA,
4%,
6/15/50
.......................................
3,670,000
3,326,039
Revenue,
2021
A,
Refunding,
4%,
6/15/36
...............................
2,000,000
2,000,171
Revenue,
2022
CC,
5.5%,
6/15/50
.....................................
1,250,000
1,343,210
New
Jersey
Turnpike
Authority
,
Revenue,
2017
A,
5%,
1/01/34
........................................
6,505,000
6,959,266
Revenue,
2017
A,
5%,
1/01/35
........................................
3,495,000
3,718,653
Revenue,
2017
B,
Refunding,
5%,
1/01/40
...............................
15,245,000
16,040,954
Revenue,
2017
G,
Refunding,
4%,
1/01/43
...............................
5,000,000
4,842,838
Revenue,
2019
A,
5%,
1/01/48
........................................
15,500,000
16,284,018
Revenue,
2021
A,
4%,
1/01/51
........................................
3,000,000
2,810,295
Revenue,
2022
B,
4.5%,
1/01/48
......................................
5,000,000
5,052,386
Newark
Board
of
Education
,
GO,
2021,
Refunding,
BAM
Insured,
3%,
7/15/39
..........................
700,000
567,659
GO,
2021,
Refunding,
BAM
Insured,
3%,
7/15/40
..........................
750,000
592,697
GO,
2021,
Refunding,
BAM
Insured,
3%,
7/15/41
..........................
750,000
583,254
GO,
2021,
Refunding,
BAM
Insured,
3%,
7/15/42
..........................
700,000
532,933
Newark
Housing
Authority
,
Port
Authority
of
New
York
&
New
Jersey
,
Revenue
,
2017
,
Refunding
,
4
%
,
1/01/37
.............................................
20,745,000
20,832,177
c
Passaic
County
Improvement
Authority
(The)
,
Paterson
Arts
&
Science
Charter
School,
Revenue,
2023,
5.25%,
7/01/43
........
670,000
677,866
Paterson
Arts
&
Science
Charter
School,
Revenue,
2023,
5.375%,
7/01/53
.......
1,000,000
1,006,311
Paterson
Arts
&
Science
Charter
School,
Revenue,
2023,
5.5%,
7/01/58
.........
1,000,000
1,007,938
South
Jersey
Transportation
Authority
,
Revenue,
2020
A,
5%,
11/01/45
.......................................
5,750,000
5,878,974
Revenue,
2022
A,
4.625%,
11/01/47
....................................
5,000,000
4,826,730
Revenue,
2022
A,
5.25%,
11/01/52
.....................................
5,540,000
5,694,336
State
of
New
Jersey
,
GO,
2020
A,
4%,
6/01/31
............................................
4,500,000
4,861,047
GO,
2020
A,
3%,
6/01/32
............................................
3,400,000
3,191,552
Tobacco
Settlement
Financing
Corp.
,
Revenue
,
2018
A
,
Refunding
,
5.25
%
,
6/01/46
..
17,000,000
17,572,745
589,876,919
New
York
3.6%
Port
Authority
of
New
York
&
New
Jersey
,
Revenue,
179,
5%,
12/01/38
.........................................
15,000,000
15,145,261
Revenue,
First
Series,
171st,
5%,
7/15/30
...............................
12,200,000
12,218,172
27,363,433
Oregon
0.3%
b
State
of
Oregon
Housing
&
Community
Services
Department
,
Union
at
Pacific
Highway
LP
,
Revenue
,
144A,
2022
II-1
,
5.5
%
,
12/01/39
............................
2,000,000
1,995,478
Franklin
Tax-Free
Trust
Schedule
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.
148
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Pennsylvania
7.4%
Delaware
River
Joint
Toll
Bridge
Commission
,
Revenue,
2017,
5%,
7/01/42
.........................................
$
19,500,000
$
20,268,127
Revenue,
2019
A,
5%,
7/01/33
........................................
100,000
111,738
Revenue,
2019
A,
5%,
7/01/34
........................................
150,000
167,337
Revenue,
2019
A,
5%,
7/01/35
........................................
150,000
165,995
Revenue,
2019
A,
5%,
7/01/36
........................................
150,000
164,793
Revenue,
2019
A,
5%,
7/01/37
........................................
150,000
163,739
Revenue,
2019
A,
5%,
7/01/38
........................................
150,000
162,931
Revenue,
2019
A,
5%,
7/01/39
........................................
150,000
161,226
Revenue,
2019
A,
5%,
7/01/44
........................................
760,000
798,160
Revenue,
2019
B,
Refunding,
5%,
7/01/31
...............................
850,000
950,762
Revenue,
2019
B,
Refunding,
5%,
7/01/32
...............................
1,000,000
1,119,298
Delaware
River
Port
Authority
,
Revenue,
2013,
5%,
1/01/37
.........................................
10,000,000
10,135,823
Revenue,
2018
A,
5%,
1/01/37
........................................
3,285,000
3,560,217
Revenue,
2018
A,
5%,
1/01/38
........................................
5,050,000
5,448,752
Revenue,
2018
A,
5%,
1/01/39
........................................
2,300,000
2,471,168
Revenue,
2018
A,
5%,
1/01/40
........................................
9,565,000
10,224,053
56,074,119
South
Carolina
0.4%
South
Carolina
Jobs-Economic
Development
Authority
,
b
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
1,500,000
1,200,914
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
1,500,000
1,197,233
b
South
Carolina
State
Housing
Finance
&
Development
Authority
,
Garden
Oaks
LP
,
Revenue
,
144A,
2021
A
,
4.2
%
,
12/01/39
................................
1,000,000
763,899
3,162,046
Texas
0.7%
City
of
Dallas
,
DHFC
-
Briscoe
Apartments
LLC
(The)
,
Revenue,
Senior
Lien
,
2022
A
,
6
%
,
12/01/62
.....................................................
2,000,000
2,055,878
b
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
2,100,000
1,557,652
b
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
A-2
,
5
%
,
12/01/52
............
2,700,000
1,975,310
5,588,840
Washington
0.2%
b
Washington
State
Housing
Finance
Commission
,
Madison
at
Rivers
Edge
Apartments
LLC
,
Revenue
,
144A,
2021
A
,
3.65
%
,
1/01/37
............................
1,500,000
1,200,966
Wisconsin
0.9%
b
Public
Finance
Authority
,
Revenue,
144A,
2022,
B-1,
4%,
12/28/44
................................
1,500,000
1,188,531
Gulf
Coast
Portfolio
Obligated
Group,
Revenue,
144A,
2021,
5.25%,
12/01/23
....
4,100,000
4,100,000
Pine
Forest
2022
Obligated
Group,
Revenue,
144A,
2022
A,
6.5%,
12/01/52
.....
2,000,000
1,978,965
7,267,496
U.S.
Territories
2.3%
Puerto
Rico
2.3%
HTA
TRRB
Custodial
Trust
,
Revenue,
2005
L,
5.25%,
7/01/41
.....................................
2,700,000
2,729,666
Revenue,
2007
N,
5.25%,
7/01/36
.....................................
300,000
302,672
Puerto
Rico
Electric
Power
Authority
,
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/32
....................
1,200,000
1,203,113
d
Revenue,
WW,
5.5%,
7/01/38
.........................................
3,950,000
2,794,625
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue,
2022
A,
5%,
7/01/62
........................................
94,046
87,228
Revenue,
2022
B,
Zero
Cpn
.,
7/01/32
...................................
61,117
38,198
Franklin
Tax-Free
Trust
Schedule
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
149
L
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,
2022
C,
Zero
Cpn
.,
7/01/53
..................................
$
104,547
$
58,041
Puerto
Rico
Sales
Tax
Financing
Corp.
,
Sales
Tax
,
Revenue
,
A-1
,
5
%
,
7/01/58
.....
10,850,000
10,066,630
17,280,173
Total
U.S.
Territories
....................................................................
17,280,173
Total
Municipal
Bonds
(Cost
$770,244,369)
.....................................
733,268,984
Total
Long
Term
Investments
(Cost
$771,844,369)
...............................
734,840,703
a
a
a
a
a
Short
Term
Investments
3.2%
Municipal
Bonds
3.2%
New
Jersey
3.2%
e
New
Jersey
Health
Care
Facilities
Financing
Authority
,
Virtua
Health
Obligated
Group,
Revenue,
2009
B,
LOC
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
1.6%,
7/01/43
..................................
9,600,000
9,600,000
Virtua
Health
Obligated
Group,
Revenue,
2009
C,
LOC
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
1.6%,
7/01/43
..................................
15,000,000
15,000,000
24,600,000
Total
Municipal
Bonds
(Cost
$24,600,000)
......................................
24,600,000
Total
Short
Term
Investments
(Cost
$24,600,000
)
................................
24,600,000
a
Total
Investments
(Cost
$796,444,369)
99.7%
...................................
$759,440,703
Other
Assets,
less
Liabilities
0.3%
.............................................
2,438,562
Net
Assets
100.0%
...........................................................
$761,879,265
See
Abbreviations
on
page
178
.
a
Fair
valued
using
significant
unobservable
inputs.
See
Note
12
regarding
fair
value
measurements.
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,
2023,
the
aggregate
value
of
these
securities
was
$24,547,356,
representing
3.2%
of
net
assets.
c
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).
d
See
Note
7
regarding
defaulted
securities.
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
Statements
Statements
of
Assets
and
Liabilities
February
28,
2023
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
150
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
.................................
$2,424,735,594
$962,698,439
$5,408,772,621
Cost
-
Controlled
affiliates
(Note
3
f
)
..........................
57,603,313
39,888,825
45,357,737
Value
-
Unaffiliated
issuers
................................
$2,315,040,192
$931,904,720
$5,085,131,914
Value
-
Controlled
affiliates
(Note
3
f
)
.........................
49,469,850
36,254,500
41,339,025
Cash
..................................................
7,764,223
6,998,722
4,384,672
Receivables:
Investment
securities
sold
.................................
7,457,072
—
7,735,875
Capital
shares
sold
......................................
1,495,591
1,223,047
2,365,898
Interest
...............................................
24,432,094
8,235,781
60,410,959
Affiliates
..............................................
—
88,638
—
Total
assets
........................................
2,405,659,022
984,705,408
5,201,368,343
Liabilities:
Payables:
Investment
securities
purchased
............................
14,735,859
3,052,670
14,338,956
Capital
shares
redeemed
.................................
4,333,324
2,083,806
9,844,242
Management
fees
.......................................
68,034
—
1,998,856
Distribution
fees
........................................
227,721
111,270
563,368
Transfer
agent
fees
......................................
504,279
139,250
1,001,300
Trustees'
fees
and
expenses
...............................
4,173
3,318
6,352
Distributions
to
shareholders
...............................
548,625
290,604
1,629,422
Accrued
expenses
and
other
liabilities
.........................
424,116
108,048
768,876
Total
liabilities
.......................................
20,846,131
5,788,966
30,151,372
Net
assets,
at
value
...............................
$2,384,812,891
$978,916,442
$5,171,216,971
Net
assets
consist
of:
Paid-in
capital
...........................................
$2,622,858,055
$1,028,861,390
$6,380,050,262
Total
distributable
earnings
(losses)
...........................
(238,045,164)
(49,944,948)
(1,208,833,291)
Net
assets,
at
value
...............................
$2,384,812,891
$978,916,442
$5,171,216,971
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
February
28,
2023
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
151
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
.....................................
$707,815,502
$385,371,936
$1,390,633,174
Shares
outstanding
......................................
64,204,073
38,428,986
160,301,291
Net
asset
value
per
share
a
................................
$11.02
$10.03
$8.68
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
97.75%,
97.75%
and
96.25%,
respectively)
..........................
$11.27
$10.26
$9.02
Class
A1:
Net
assets,
at
value
.....................................
$864,507,926
$305,208,396
$2,577,669,936
Shares
outstanding
......................................
78,520,288
30,406,503
297,376,410
Net
asset
value
per
share
a
................................
$11.01
$10.04
$8.67
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
97.75%,
97.75%
and
96.25%,
respectively)
..........................
$11.26
$10.27
$9.01
Class
C:
Net
assets,
at
value
.....................................
$42,983,378
$—
$175,131,498
Shares
outstanding
......................................
3,891,531
—
19,800,127
Net
asset
value
and
maximum
offering
price
per
share
a
...........
$11.05
$—
$8.84
Class
R6:
Net
assets,
at
value
.....................................
$135,523,682
$68,248,048
$181,286,317
Shares
outstanding
......................................
12,277,056
6,804,896
20,812,085
Net
asset
value
and
maximum
offering
price
per
share
...........
$11.04
$10.03
$8.71
Advisor
Class:
Net
assets,
at
value
.....................................
$633,982,403
$220,088,062
$846,496,046
Shares
outstanding
......................................
57,437,022
21,935,897
97,211,087
Net
asset
value
and
maximum
offering
price
per
share
...........
$11.04
$10.03
$8.71
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,
2023
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
152
Franklin
Massachusetts
Tax-Free
Income
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
..................................................
$383,401,391
$796,444,369
Value
-
Unaffiliated
issuers
.................................................
$360,853,087
$759,440,703
Cash
...................................................................
12,786
77,668
Receivables:
Capital
shares
sold
.......................................................
662,418
320,992
Interest
................................................................
3,558,207
6,860,665
Total
assets
.........................................................
365,086,498
766,700,028
Liabilities:
Payables:
Investment
securities
purchased
.............................................
—
2,631,965
Capital
shares
redeemed
..................................................
351,287
1,419,418
Management
fees
........................................................
159,823
310,456
Distribution
fees
.........................................................
29,763
72,913
Transfer
agent
fees
.......................................................
61,392
107,664
Trustees'
fees
and
expenses
................................................
2,457
2,154
Distributions
to
shareholders
................................................
133,234
199,330
Accrued
expenses
and
other
liabilities
..........................................
60,646
76,863
Total
liabilities
........................................................
798,602
4,820,763
Net
assets,
at
value
................................................
$364,287,896
$761,879,265
Net
assets
consist
of:
Paid-in
capital
............................................................
$408,696,372
$899,465,097
Total
distributable
earnings
(losses)
............................................
(44,408,476)
(137,585,832)
Net
assets,
at
value
................................................
$364,287,896
$761,879,265
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
February
28,
2023
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
153
Franklin
Massachusetts
Tax-Free
Income
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
Class
A:
Net
assets,
at
value
......................................................
$54,359,637
$120,100,827
Shares
outstanding
.......................................................
5,219,636
11,879,154
Net
asset
value
per
share
a
.................................................
$10.41
$10.11
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%
and
96.25%,
respectively)
............................................................
$10.82
$10.50
Class
A1:
Net
assets,
at
value
......................................................
$166,958,373
$372,268,072
Shares
outstanding
.......................................................
16,042,024
36,870,571
Net
asset
value
per
share
a
.................................................
$10.41
$10.10
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%
and
96.25%,
respectively)
............................................................
$10.82
$10.49
Class
C:
Net
assets,
at
value
......................................................
$11,611,913
$40,432,850
Shares
outstanding
.......................................................
1,102,231
3,950,770
Net
asset
value
and
maximum
offering
price
per
share
a
............................
$10.53
$10.23
Class
R6:
Net
assets,
at
value
......................................................
$23,528,267
$37,543,436
Shares
outstanding
.......................................................
2,259,023
3,714,374
Net
asset
value
and
maximum
offering
price
per
share
............................
$10.42
$10.11
Advisor
Class:
Net
assets,
at
value
......................................................
$107,829,706
$191,534,080
Shares
outstanding
.......................................................
10,360,048
18,951,981
Net
asset
value
and
maximum
offering
price
per
share
............................
$10.41
$10.11
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,
2023
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
154
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
......................................
$214,516
$122,528
$412,458
Controlled
affiliates
(Note
3
f
)
...............................
1,137,686
822,810
965,971
Interest:
Unaffiliated
issuers
......................................
82,000,603
24,111,496
288,435,943
Total
investment
income
.................................
83,352,805
25,056,834
289,814,372
Expenses:
Management
fees
(Note
3
a
)
.................................
12,522,654
5,638,833
25,513,077
Distribution
fees:
(Note
3c
)
    Class
A
..............................................
1,766,280
948,950
3,461,856
    Class
A1
.............................................
1,027,592
534,780
2,922,950
    Class
C
..............................................
340,757
—
1,338,282
Transfer
agent
fees:
(Note
3e
)
    Class
A
..............................................
533,326
222,351
1,005,397
    Class
A1
.............................................
778,425
208,828
2,126,784
    Class
C
..............................................
39,705
—
149,742
    Class
R6
.............................................
48,782
25,442
55,600
    Advisor
Class
..........................................
632,361
225,571
718,215
Custodian
fees
(Note
4
)
....................................
14,679
6,808
31,459
Registration
and
filing
fees
..................................
157,253
110,497
349,677
Professional
fees
.........................................
62,373
57,766
233,925
Trustees'
fees
and
expenses
................................
36,494
16,474
71,756
Federal
and
state
income
taxes
..............................
1,217,673
510,350
6,147,323
Other
..................................................
2,001
134,676
700,202
Total
expenses
.......................................
19,180,355
8,641,326
44,826,245
Expense
reductions
(Note
4
)
.............................
(22,876)
(3,035)
(28,478)
Expenses
waived/paid
by
affiliates
(Note
3
f
and
3
g
)
............
(3,442,217)
(2,403,353)
(140,453)
Net
expenses
.......................................
15,715,262
6,234,938
44,657,314
Net
investment
income
..............................
67,637,543
18,821,896
245,157,058
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
....................................
(60,502,421)
(9,673,204)
(81,256,022)
Controlled
affiliates
(Note
3
f
)
.............................
(636,053)
—
(580,060)
Net
realized
gain
(loss)
................................
(61,138,474)
(9,673,204)
(81,836,082)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
....................................
(165,291,375)
(31,549,153)
(839,417,543)
Controlled
affiliates
(Note
3
f
)
.............................
(4,945,451)
(3,559,375)
(3,380,374)
Net
change
in
unrealized
appreciation
(depreciation)
..........
(170,236,826)
(35,108,528)
(842,797,917)
Net
realized
and
unrealized
gain
(loss)
..........................
(231,375,300)
(44,781,732)
(924,633,999)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
........
$(163,737,757)
$(25,959,836)
$(679,476,941)
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Operations
(continued)
for
the
year
ended
February
28,
2023
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
155
Franklin
Massachusetts
Tax-Free
Income
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
Investment
income:
Interest:
Unaffiliated
issuers
.......................................................
$11,671,444
$25,966,368
Expenses:
Management
fees
(Note
3
a
)
..................................................
1,940,585
3,562,502
Distribution
fees:
(Note
3c
)
    Class
A
...............................................................
140,596
313,761
    Class
A1
..............................................................
187,510
403,906
    Class
C
...............................................................
90,891
303,625
Transfer
agent
fees:
(Note
3e
)
    Class
A
...............................................................
41,873
86,219
    Class
A1
..............................................................
140,082
277,497
    Class
C
...............................................................
10,466
32,097
    Class
R6
..............................................................
6,403
9,019
    Advisor
Class
...........................................................
78,401
87,142
Custodian
fees
(Note
4
)
.....................................................
1,680
3,408
Registration
and
filing
fees
...................................................
44,928
33,997
Professional
fees
..........................................................
61,212
69,490
Trustees'
fees
and
expenses
.................................................
6,377
9,368
Federal
and
state
income
taxes
...............................................
34,774
67,535
Other
...................................................................
36,779
65,570
Total
expenses
........................................................
2,822,557
5,325,136
Expense
reductions
(Note
4
)
..............................................
(1,434)
(2,114)
Expenses
waived/paid
by
affiliates
(Note
3
f
and
3
g
)
.............................
(1,584)
—
Net
expenses
........................................................
2,819,539
5,323,022
Net
investment
income
...............................................
8,851,905
20,643,346
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
.....................................................
(5,446,681)
(6,611,717)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
.....................................................
(34,362,758)
(66,000,785)
Net
realized
and
unrealized
gain
(loss)
...........................................
(39,809,439)
(72,612,502)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.........................
$(30,957,534)
$(51,969,156)
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
Federal
Intermediate-Term
Tax-Free
Income
Fund
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Year
Ended
February
28,
2023
Year
Ended
February
28,
2022
Year
Ended
February
28,
2023
Year
Ended
February
28,
2022
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$67,637,543
$78,089,200
$18,821,896
$11,959,880
Net
realized
gain
(loss)
............
(61,138,474)
19,638,184
(9,673,204)
(34,365)
Net
change
in
unrealized
appreciation
(depreciation)
.................
(170,236,826)
(143,433,808)
(35,108,528)
(29,686,299)
Net
increase
(decrease)
in
net
assets
resulting
from
op
erations
.
(163,737,757)
(45,706,424)
(25,959,836)
(17,760,784)
Distributions
to
shareholders:
Class
A
........................
(15,455,518)
(13,727,492)
(4,898,693)
(2,317,138)
Class
A1
.......................
(23,870,190)
(27,971,260)
(4,774,927)
(3,584,062)
Class
C
........................
(924,352)
(1,405,068)
—
—
Class
R6
.......................
(3,978,869)
(9,704,030)
(1,167,694)
(784,984)
Advisor
Class
...................
(20,019,329)
(25,287,616)
(5,472,208)
(5,193,340)
Total
distributions
to
shareholders
.....
(64,248,258)
(78,095,466)
(16,313,522)
(11,879,524)
Capital
share
transactions:
(Note
2
)
Class
A
........................
3,804,671
151,933,617
49,912,022
58,474,407
Class
A1
.......................
(316,478,194)
(95,815,361)
(96,232,518)
(45,440,406)
Class
C
........................
(19,714,123)
(52,479,554)
—
—
Class
R6
.......................
(108,182,716)
(143,397,907)
(15,539,410)
18,054,059
Advisor
Class
...................
(416,947,060)
11,781,859
(305,462,793)
36,938,149
Total
capital
share
transactions
.......
(857,517,422)
(127,977,346)
(367,322,699)
68,026,209
Net
increase
(decrease)
in
net
assets
.....................
(1,085,503,437)
(251,779,236)
(409,596,057)
38,385,901
Net
assets:
Beginning
of
year
..................
3,470,316,328
3,722,095,564
1,388,512,499
1,350,126,598
End
of
year
......................
$2,384,812,891
$3,470,316,328
$978,916,442
$1,388,512,499
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
High
Yield
Tax-Free
Income
Fund
Franklin
Massachusetts
Tax-Free
Income
Fund
Year
Ended
February
28,
2023
Year
Ended
February
28,
2022
Year
Ended
February
28,
2023
Year
Ended
February
28,
2022
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$245,157,058
$252,494,675
$8,851,905
$8,845,296
Net
realized
gain
(loss)
............
(81,836,082)
85,762,107
(5,446,681)
2,483,489
Net
change
in
unrealized
appreciation
(depreciation)
.................
(842,797,917)
(264,860,199)
(34,362,758)
(15,471,274)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
(679,476,941)
73,396,583
(30,957,534)
(4,142,489)
Distributions
to
shareholders:
Class
A
........................
(54,433,321)
(48,912,923)
(1,218,887)
(1,166,474)
Class
A1
.......................
(119,261,988)
(133,724,379)
(4,338,400)
(4,729,342)
Class
C
........................
(7,084,517)
(9,352,139)
(241,213)
(324,348)
Class
R6
.......................
(7,914,901)
(7,469,662)
(378,978)
(416,178)
Advisor
Class
...................
(41,048,288)
(48,104,855)
(2,555,075)
(2,204,859)
Total
distributions
to
shareholders
.....
(229,743,015)
(247,563,958)
(8,732,553)
(8,841,201)
Capital
share
transactions:
(Note
2
)
Class
A
........................
44,680,026
427,759,208
(4,220,447)
7,788,717
Class
A1
.......................
(475,194,951)
(155,591,551)
(31,869,155)
(19,817,443)
Class
C
........................
(53,414,204)
(92,656,240)
(4,759,711)
(8,668,013)
Class
R6
.......................
(16,693,898)
78,465,868
4,317,688
4,663,994
Advisor
Class
...................
(271,497,829)
89,039,042
8,235,684
6,460,125
Total
capital
share
transactions
.......
(772,120,856)
347,016,327
(28,295,941)
(9,572,620)
Net
increase
(decrease)
in
net
assets
.....................
(1,681,340,812)
172,848,952
(67,986,028)
(22,556,310)
Net
assets:
Beginning
of
year
..................
6,852,557,783
6,679,708,831
432,273,924
454,830,234
End
of
year
......................
$5,171,216,971
$6,852,557,783
$364,287,896
$432,273,924
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
New
Jersey
Tax-Free
Income
Fund
Year
Ended
February
28,
2023
Year
Ended
February
28,
2022
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$20,643,346
$20,125,163
Net
realized
gain
(loss)
.................................................
(6,611,717)
1,843,006
Net
change
in
unrealized
appreciation
(depreciation)
...........................
(66,000,785)
(22,042,965)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
(51,969,156)
(74,796)
Distributions
to
shareholders:
Class
A
.............................................................
(3,327,157)
(3,093,286)
Class
A1
............................................................
(11,321,141)
(12,245,222)
Class
C
.............................................................
(1,030,778)
(1,386,422)
Class
R6
............................................................
(1,004,144)
(912,192)
Advisor
Class
........................................................
(3,767,360)
(2,459,350)
Total
distributions
to
shareholders
..........................................
(20,450,580)
(20,096,472)
Capital
share
transactions:
(Note
2
)
Class
A
.............................................................
(7,864,736)
26,696,327
Class
A1
............................................................
(48,501,670)
(41,070,926)
Class
C
.............................................................
(12,869,263)
(28,211,554)
Class
R6
............................................................
5,036,814
4,915,215
Advisor
Class
........................................................
94,822,376
11,764,193
Total
capital
share
transactions
............................................
30,623,521
(25,906,745)
Net
increase
(decrease)
in
net
assets
...................................
(41,796,215)
(46,078,013)
Net
assets:
Beginning
of
year
.......................................................
803,675,480
849,753,493
End
of
year
...........................................................
$761,879,265
$803,675,480
Franklin
Tax-Free
Trust
159
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
separate
funds,
five
of
which
are
included
in
this
report
(Funds).
The
Funds
follow
the
accounting
and
reporting
guidance
in
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standards
Codification
Topic
946,
Financial
Services
–
Investment
Companies
(ASC
946)
and
apply
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP),
including,
but
not
limited
to,
ASC
946.
The
classes
of
shares
offered
within
each
of
the
Funds
are
indicated
below.
Class
C
shares
automatically
convert
to
Class
A
shares
on
a
monthly
basis,
after
they
have
been
held
for
8
years.
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
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
Board
has
designated
the
Funds’
investment
manager
as
the
valuation
designee
and
has
responsibility
for
oversight
of
valuation.
The
investment
manager
is
assisted
by
the
Funds'
administrator
in
performing
this
responsibility,
including
leading
the
crossfunctional
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,
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.
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
160
franklintempleton.com
Annual
Report
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.
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.
The
federal
and
state
income
taxes
on
the
Statements
of
Operations
represents
taxes
on
taxable
income
earned
by
the
Funds
not
distributed
to
shareholders,
and
therefore
are
paid
on
their
behalf
by
the
Funds.
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,
2023, 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.
1.
Organization
and
Significant
Accounting
Policies
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
161
franklintempleton.com
Annual
Report
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.
g.
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.
h.
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,
2023,
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,
2023
Shares
sold
a
...................................
36,594,592
$404,630,584
35,080,891
$352,301,305
Shares
issued
in
reinvestment
of
distributions
..........
1,321,861
14,627,575
473,154
4,753,306
Shares
redeemed
...............................
(37,514,828)
(415,453,488)
(30,543,271)
(307,142,589)
Net
increase
(decrease)
..........................
401,625
$3,804,671
5,010,774
$49,912,022
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
Class
A1
1.
Organization
and
Significant
Accounting
Policies
(continued)
f.
Insurance
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
162
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,
2023
Shares
sold
...................................
4,609,682
$50,963,548
3,274,121
$32,922,625
Shares
issued
in
reinvestment
of
distributions
..........
2,029,331
22,448,351
442,971
4,456,171
Shares
redeemed
...............................
(35,241,087)
(389,890,093)
(13,285,535)
(133,611,314)
Net
increase
(decrease)
..........................
(28,602,074)
$(316,478,194)
(9,568,443)
$(96,232,518)
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)
Class
C
Class
C
Shares:
Six
Months
ended
February
28,
2023
Shares
sold
...................................
959,653
$10,580,587
—
$—
Shares
issued
in
reinvestment
of
distributions
..........
79,051
877,216
—
—
Shares
redeemed
a
..............................
(2,803,170)
(31,171,926)
—
—
Net
increase
(decrease)
..........................
(1,764,466)
$(19,714,123)
—
$—
Six
Months
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)
—
$—
Class
R6
Class
R6
Shares:
Year
ended
February
28,
2023
Shares
sold
...................................
7,152,223
$80,142,295
3,545,271
$35,719,966
Shares
issued
in
reinvestment
of
distributions
..........
304,818
3,382,550
107,940
1,084,763
Shares
redeemed
...............................
(16,940,725)
(191,707,561)
(5,202,128)
(52,344,139)
Net
increase
(decrease)
..........................
(9,483,684)
$(108,182,716)
(1,548,917)
$(15,539,410)
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
Advisor
Class
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
163
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,
2023
Shares
sold
...................................
29,337,773
$325,456,153
11,756,901
$118,330,489
Shares
issued
in
reinvestment
of
distributions
..........
1,242,438
13,779,291
168,527
1,694,730
Shares
redeemed
...............................
(68,263,812)
(756,182,504)
(42,420,533)
(425,488,012)
Net
increase
(decrease)
..........................
(37,683,601)
$(416,947,060)
(30,495,105)
$(305,462,793)
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
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,
2023
Shares
sold
a
...................................
60,885,592
$545,770,238
1,202,292
$12,678,132
Shares
issued
in
reinvestment
of
distributions
..........
5,647,444
50,430,337
104,046
1,093,804
Shares
redeemed
...............................
(61,453,190)
(551,520,549)
(1,709,342)
(17,992,383)
Net
increase
(decrease)
..........................
5,079,846
$44,680,026
(403,004)
$(4,220,447)
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
Class
A1
Class
A1
Shares:
Year
ended
February
28,
2023
Shares
sold
...................................
13,891,717
$124,305,855
348,578
$3,693,825
Shares
issued
in
reinvestment
of
distributions
..........
11,969,115
106,937,542
325,729
3,423,385
Shares
redeemed
...............................
(78,989,140)
(706,438,348)
(3,710,752)
(38,986,365)
Net
increase
(decrease)
..........................
(53,128,308)
$(475,194,951)
(3,036,445)
$(31,869,155)
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)
Class
C
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
164
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,
2023
Shares
sold
...................................
2,804,819
$25,641,040
60,259
$641,293
Shares
issued
in
reinvestment
of
distributions
..........
738,226
6,735,684
20,195
214,938
Shares
redeemed
a
..............................
(9,353,689)
(85,790,928)
(526,639)
(5,615,942)
Net
increase
(decrease)
..........................
(5,810,644)
$(53,414,204)
(446,185)
$(4,759,711)
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)
Class
R6
Class
R6
Shares:
Year
ended
February
28,
2023
Shares
sold
...................................
14,300,916
$129,119,267
1,931,172
$20,294,929
Shares
issued
in
reinvestment
of
distributions
..........
711,718
6,392,027
8,217
86,442
Shares
redeemed
...............................
(16,876,267)
(152,205,192)
(1,499,677)
(16,063,683)
Net
increase
(decrease)
..........................
(1,863,633)
$(16,693,898)
439,712
$4,317,688
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
Advisor
Class
Advisor
Class
Shares:
Year
ended
February
28,
2023
Shares
sold
...................................
66,171,700
$595,000,714
19,406,147
$203,904,283
Shares
issued
in
reinvestment
of
distributions
..........
3,842,508
34,486,468
236,826
2,486,691
Shares
redeemed
...............................
(100,166,341)
(900,985,011)
(18,865,131)
(198,155,290)
Net
increase
(decrease)
..........................
(30,152,133)
$(271,497,829)
777,842
$8,235,684
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
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
165
franklintempleton.com
Annual
Report
Franklin
New
Jersey
Tax-Free
Income
Fund
Shares
Amount
Class
A
Class
A
Shares:
Year
ended
February
28,
2023
Shares
sold
a
...................................
2,414,680
$24,903,884
Shares
issued
in
reinvestment
of
distributions
..........
290,072
2,967,899
Shares
redeemed
...............................
(3,478,816)
(35,736,519)
Net
increase
(decrease)
..........................
(774,064)
$(7,864,736)
Year
ended
February
28,
2022
Shares
sold
a
...................................
4,002,318
$46,526,741
Shares
issued
in
reinvestment
of
distributions
..........
238,426
2,752,388
Shares
redeemed
...............................
(1,954,472)
(22,582,802)
Net
increase
(decrease)
..........................
2,286,272
$26,696,327
Class
A1
Class
A1
Shares:
Year
ended
February
28,
2023
Shares
sold
...................................
439,595
$4,536,775
Shares
issued
in
reinvestment
of
distributions
..........
918,290
9,388,034
Shares
redeemed
...............................
(6,079,503)
(62,426,479)
Net
increase
(decrease)
..........................
(4,721,618)
$(48,501,670)
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)
Class
C
Class
C
Shares:
Year
ended
February
28,
2023
Shares
sold
...................................
231,359
$2,415,473
Shares
issued
in
reinvestment
of
distributions
..........
90,021
933,273
Shares
redeemed
a
..............................
(1,552,847)
(16,218,009)
Net
increase
(decrease)
..........................
(1,231,467)
$(12,869,263)
Year
ended
February
28,
2022
Shares
sold
...................................
337,987
$3,968,819
Shares
issued
in
reinvestment
of
distributions
..........
109,144
1,277,734
Shares
redeemed
a
..............................
(2,843,562)
(33,458,107)
Net
increase
(decrease)
..........................
(2,396,431)
$(28,211,554)
Class
R6
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
166
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
New
Jersey
Tax-Free
Income
Fund
Shares
Amount
Class
R6
Shares:
Year
ended
February
28,
2023
Shares
sold
...................................
1,628,682
$16,616,260
Shares
issued
in
reinvestment
of
distributions
..........
95,969
981,338
Shares
redeemed
...............................
(1,224,938)
(12,560,784)
Net
increase
(decrease)
..........................
499,713
$5,036,814
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
Advisor
Class
Advisor
Class
Shares:
Year
ended
February
28,
2023
Shares
sold
...................................
22,292,441
$223,919,373
Shares
issued
in
reinvestment
of
distributions
..........
349,614
3,563,666
Shares
redeemed
...............................
(12,949,337)
(132,660,663)
Net
increase
(decrease)
..........................
9,692,718
$94,822,376
Year
ended
February
28,
2022
Shares
sold
...................................
2,647,057
$30,359,439
Shares
issued
in
reinvestment
of
distributions
..........
197,826
2,283,765
Shares
redeemed
...............................
(1,811,088)
(20,879,011)
Net
increase
(decrease)
..........................
1,033,795
$11,764,193
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
167
franklintempleton.com
Annual
Report
a.
Management
Fees
The
Funds,
except
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund,
pay
an
investment
management
fee,
calculated
daily
and
paid
monthly,
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,
calculated
daily
and
paid
monthly,
to
Advisers
based
on
the
average
daily
net
assets
of
the
fund
as
follows:
For
the
year
ended
February
28,
2023,
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.
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
........
0.451%
0.471%
0.450%
Franklin
Massachusetts
Tax-Free
Income
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
Gross
effective
investment
management
fee
rate
........
0.512%
0.483%
3.
Transactions
with
Affiliates
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
168
franklintempleton.com
Annual
Report
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:
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
Reimbursement
Plans:
Class
A
...............................
0.25%
0.25%
0.25%
0.25%
Class
A1
..............................
0.10%
0.15%
0.10%
0.10%
Compensation
Plans:
Class
C
...............................
0.65%
—%
0.65%
0.65%
Franklin
New
Jersey
Tax-Free
Income
Fund
Reimbursement
Plans:
Class
A
...............................
0.25%
Class
A1
..............................
0.10%
Compensation
Plans:
Class
C
...............................
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
Franklin
Massachusetts
Tax-Free
Income
Fund
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..................
$15,459
$7,507
$50,715
$2,208
CDSC
retained
...........................
$140,884
$69,682
$389,689
$6,263
Franklin
New
Jersey
Tax-Free
Income
Fund
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..................
$4,798
CDSC
retained
...........................
$16,442
3.
Transactions
with
Affiliates
(continued)
c.
Distribution
Fees
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
169
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.
Effective
October
1,
2022,
the
fees
are
based
on
an
annualized
asset
based
fee
of
0.016%
plus
a
reduced
transaction
based
fee.
Prior
to
October
1,
2022,
the
fees
were
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,
2023,
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,
2023,
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
Franklin
Massachusetts
Tax-Free
Income
Fund
Transfer
agent
fees
........................
$692,968
$294,925
$1,543,303
$114,858
Franklin
New
Jersey
Tax-Free
Income
Fund
Transfer
agent
fees
........................
$229,409
    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
Municipal
Green
Bond
ETF
...................
$
65,440,300
$
—
$
(10,388,946)
$
(636,053)
$
(4,945,451)
$
49,469,850
2,115,000
$
1,137,686
Total
Affiliated
Securities
...
$65,440,300
$—
$(10,388,946)
$(636,053)
$(4,945,451)
$49,469,850
$1,137,686
3.
Transactions
with
Affiliates
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
170
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
so
that
the
operating expenses
(excluding
interest
expense,
distribution
fees,
acquired
fund
fees
and
expenses
and
certain
non-routine
expenses
or
costs,
including
those
relating
to
litigation,
indemnification,
reorganizations,
and
liquidations)
for
Class
A,
Class
A1,
Class
C
and
Advisor
Class
of
the
Fund
do
not
exceed
0.46%,
and
for
Class
R6
does
not
exceed
0.40%,
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
Fund's
fiscal
year
end.
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
Limited-Term
Tax-Free
Income
Fund
so
that
the
operating
expenses
(excluding
interest
expense,
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
Fund
do
not
exceed
0.40%,
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
Fund’s
fiscal
year
end.
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
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
0.65%,
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.
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,
2023.
For
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund,
Franklin
High
Yield
Tax-Free
Income
    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
Municipal
Green
Bond
ETF
...................
$
33,826,000
$
5,987,875
$
—
$
—
$
(3,559,375)
$
36,254,500
1,550,000
$
822,810
Total
Affiliated
Securities
...
$33,826,000
$5,987,875
$—
$—
$(3,559,375)
$36,254,500
$822,810
Franklin
High
Yield
Tax-Free
Income
Fund
Controlled
Affiliates
Dividends
Franklin
Dynamic
Municipal
Bond
ETF
...................
$
46,532,900
$
3,579,000
$
(4,812,441)
$
(580,060)
$
(3,380,374)
$
41,339,025
1,755,000
$
965,971
Total
Affiliated
Securities
...
$46,532,900
$3,579,000
$(4,812,441)
$(580,060)
$(3,380,374)
$41,339,025
$965,971
3.
Transactions
with
Affiliates
(continued)
f.
Investments
in
Affiliated
Management
Investment
Companies
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
171
franklintempleton.com
Annual
Report
Fund,
Franklin
Massachusetts
Tax-Free
Income
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,
2023.
h.
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,
2023,
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,
2023, 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,
2023,
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
Franklin
Massachusetts
Tax-Free
Income
Fund
Purchases
..............................
$225,434,711
$199,216,275
$374,639,901
$17,196,775
Sales
..................................
$244,742,428
$300,345,000
$442,550,436
$11,026,311
Net
Realized
Gains
(Losses)
.................
$(5,993,785)
—
$(20,138,901)
$(836,136)
Franklin
New
Jersey
Tax-Free
Income
Fund
Purchases
..............................
$15,004,423
Sales
..................................
$3,200,000
Net
Realized
Gains
(Losses)
.................
—
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
1
1
1
1
1
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
.............................
$
78,379,424
$
6,292,471
$
234,084,908
$
13,158,899
Long
term
.............................
42,437,973
10,627,473
665,244,110
8,715,982
Total
capital
loss
carryforwards
............
$120,817,397
$16,919,944
$899,329,018
$21,874,881
3.
Transactions
with
Affiliates
(continued)
g.
Waiver
and
Expense
Reimbursements
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
172
franklintempleton.com
Annual
Report
The
tax
character
of
distributions
paid
during
the
years
ended
February
28,
2023
and
2022,
were
as
follows:
Franklin
New
Jersey
Tax-Free
Income
Fund
1
1
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
.............................
$
16,209,334
Long
term
.............................
84,916,731
Total
capital
loss
carryforwards
............
$101,126,065
Franklin
Federal
Intermediate-Term
Tax-Free
Income
Fund
Franklin
Federal
Limited-Term
Tax-
Free
Income
Fund
2023
2022
2023
2022
Distributions
paid
from:
Ordinary
income
........................
$416,727
$—
$165,946
$—
Tax
exempt
income
......................
63,831,531
78,095,466
16,147,576
11,879,524
$64,248,258
$78,095,466
$16,313,522
$11,879,524
Franklin
High
Yield
Tax-Free
Income
Fund
Franklin
Massachusetts
Tax-Free
Income
Fund
2023
2022
2023
2022
Distributions
paid
from:
Ordinary
income
........................
$1,315,278
$—
$39,460
$—
Tax
exempt
income
......................
228,427,737
247,563,958
8,693,093
8,841,201
$229,743,015
$247,563,958
$8,732,553
$8,841,201
Franklin
New
Jersey
Tax-Free
Income
Fund
2023
2022
Distributions
paid
from:
Ordinary
income
........................
$58,325
$—
Tax
exempt
income
......................
20,392,255
20,096,472
$20,450,580
$20,096,472
5.
Income
Taxes
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
173
franklintempleton.com
Annual
Report
At
February
28,
2023,
the
cost
of
investments,
net
unrealized
appreciation
(depreciation)
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,
2023,
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
Franklin
Massachusetts
Tax-Free
Income
Fund
a
a
a
a
a
Cost
of
investments
.......................
$2,482,398,247
$1,002,249,343
$5,463,837,390
$383,393,895
Unrealized
appreciation
.....................
$10,245,342
$2,742,734
$225,716,905
$2,063,313
Unrealized
depreciation
.....................
(128,133,546)
(36,832,857)
(563,083,356)
(24,604,122)
Net
unrealized
appreciation
(depreciation)
.......
$(117,888,204)
$(34,090,123)
$(337,366,451)
$(22,540,809)
Distributable
earnings:
Undistributed
tax
exempt
income
..............
$1,470,286
$1,483,995
$31,112,520
$148,164
Total
distributable
earnings
..................
$1,470,286
$1,483,995
$31,112,520
$148,164
Franklin
New
Jersey
Tax-Free
Income
Fund
a
a
Cost
of
investments
.......................
$796,711,330
Unrealized
appreciation
.....................
$5,920,204
Unrealized
depreciation
.....................
(43,190,831)
Net
unrealized
appreciation
(depreciation)
.......
$(37,270,627)
Distributable
earnings:
Undistributed
tax
exempt
income
..............
$1,025,040
Total
distributable
earnings
..................
$1,025,040
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
Purchases
..............................
$684,201,916
$325,347,848
$1,300,935,500
$39,702,362
Sales
..................................
$1,502,554,583
$477,025,918
$2,162,991,427
$53,248,976
5.
Income
Taxes
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
174
franklintempleton.com
Annual
Report
7.
Credit Risk
and
Defaulted
Securities
At
February
28,
2023,
Franklin
High
Yield
Tax-Free
Fund
had
54.9%
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,
2023,
the
aggregate
value
of
these
securities
for
Franklin
High
Yield
Tax-Free
Income
Fund
and
Franklin
New
Jersey
Tax-Free
Income
Fund
was
$112,945,697
and
$2,794,625,
representing
2.2%
and
0.4%,
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
Schedules
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.
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.
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
New
Jersey
Tax-Free
Income
Fund
Purchases
..............................
$115,558,688
Sales
..................................
$88,703,294
6.
Investment
Transactions
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
175
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
2,
2024.
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,
2023,
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.
A
summary
of
inputs
used
as
of
February
28,
2023,
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
.........
$
49,469,850
$
—
$
—
$
49,469,850
Municipal
Bonds
.........................
—
2,287,055,192
—
2,287,055,192
Short
Term
Investments
...................
—
27,985,000
—
27,985,000
Total
Investments
in
Securities
...........
$49,469,850
$2,315,040,192
$—
$2,364,510,042
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Assets:
Investments
in
Securities:
Management
Investment
Companies
.........
36,254,500
—
—
36,254,500
Senior
Floating
Rate
Interests
...............
—
25,774,551
15,315,752
41,090,303
Municipal
Bonds
.........................
—
878,179,417
—
878,179,417
Short
Term
Investments
...................
—
12,635,000
—
12,635,000
Total
Investments
in
Securities
...........
$36,254,500
$916,588,968
$15,315,752
$968,159,220
Franklin
High
Yield
Tax-Free
Income
Fund
Assets:
Investments
in
Securities:
Management
Investment
Companies
.........
62,429,025
—
—
62,429,025
Corporate
Bonds
:
United
States
..........................
—
118,364,303
4,335,000
122,699,303
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
176
franklintempleton.com
Annual
Report
A
reconciliation
in
which
Level
3
inputs
are
used
in
determining
fair
value
is
presented
when
there
are
significant
Level
3
assets
and/or
liabilities
at
the
beginning
and/or
end
of
the year.
At
February
28,
2023,
the
reconciliation is
as follows:
Level
1
Level
2
Level
3
Total
Franklin
High
Yield
Tax-Free
Income
Fund
(continued)
Assets:
(continued)
Investments
in
Securities:
Corporate
Bonds:
Municipal
Bonds
.........................
$
—
$
4,927,542,611
$
—
$
4,927,542,611
Short
Term
Investments
...................
—
13,800,000
—
13,800,000
Total
Investments
in
Securities
...........
$62,429,025
$5,059,706,914
$4,335,000
$5,126,470,939
Franklin
Massachusetts
Tax-Free
Income
Fund
Assets:
Investments
in
Securities:
Corporate
Bonds
........................
—
—
884,092
884,092
Senior
Floating
Rate
Interests
...............
—
—
1,030,291
1,030,291
Municipal
Bonds
.........................
—
342,238,704
—
342,238,704
Short
Term
Investments
...................
—
16,700,000
—
16,700,000
Total
Investments
in
Securities
...........
$—
$358,938,704
$1,914,383
$360,853,087
Franklin
New
Jersey
Tax-Free
Income
Fund
Assets:
Investments
in
Securities:
Corporate
Bonds
........................
—
—
1,571,719
1,571,719
Municipal
Bonds
.........................
—
733,268,984
—
733,268,984
Short
Term
Investments
...................
—
24,600,000
—
24,600,000
Total
Investments
in
Securities
...........
$—
$757,868,984
$1,571,719
$759,440,703
Balance
at
Beginning
of
Year
Purchases
a
Sales
Transfer
Into
Level
3
Transfer
Out
of
Level
3
Net
Accretion
(Amortiza-
tion)
Net
Realized
Gain
(Loss)
Net
Unr
ealized
Appreciation
(Depreciation)
Balance
at
End
of
Year
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Assets
Held
at
Year
End
a
a
a
a
a
a
a
a
a
a
a
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Assets:
Investments
in
Securities:
Senior
Floating
Rate
Interests
:
United
States
.
$
5,377,471
$
9,489,455
$
—
$
—
$
—
$
—
$
—
$
448,826
$
15,315,752
$
448,826
Total
Investments
in
Securities
.......
$5,377,471
$9,489,455
$—
$—
$—
$—
$—
$448,826
$15,315,752
$448,826
a
Purchases
include
all
purchases
of
securities
and
securities
received
in
corporate
actions.
12.
Fair
Value
Measurements
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
177
franklintempleton.com
Annual
Report
Significant
unobservable
valuation
inputs
for
material
Level
3 assets
and/or
liabilities and
impact
to
fair
value
as
a
result
of
changes
in
unobservable
valuation
inputs
as
of
February
28,
2023,
are
as
follows:
13.
New
Accounting
Pronouncements
In
March
2020,
the
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
and
December
2022,
the
FASB
issued
ASU
No.
2021-01
and
ASU
No.
2022-06,
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
LIBOR
and
other
interbank-offered
based
reference
rates
as
of
the
end
of
2021
for
certain
LIBOR
settings
and
2023
for
the
remainder.
The
ASUs
are
effective
for
certain
reference
rate-related
contract
modifications
that
occur
during
the
period
March
12,
2020
through
December
31,
2024.
Management
has
reviewed
the
requirements
and
believes
the
adoption
of
these
ASUs
will
not
have
a
material
impact
on
the
financial
statements. 
14.
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.
Description
Fair
Value
at
End
of
Year
Valuation
Technique
Unobservable
Inputs
Amount
Impact
to
Fair
Value
if
Input
Increases
a
Franklin
Federal
Limited-Term
Tax-Free
Income
Fund
Assets:
Investments
in
Securities:
Senior
Floating
Rate
Interests:
Equity
Real
Estate
Investment
Trusts
.....................
$11,231,563
Discounted
cash
flow
Yield
5.5%
Decrease
All
Other
Investments
..........
 4,084,189
b
Total
.......................
$15,315,752
a
Represents
the
directional
change
in
the
fair
value
of
the
Level
3
financial
instruments
that
would
result
from
a
significant
and
reasonable
increase
in
the
corresponding
input.
A
significant
and
reasonable
decrease
in
the
input
would
have
the
opposite
effect.
Significant
increases
and
decreases
in
these
inputs
in
isolation
could
result
in
significantly
higher
or
lower
fair
value
measurements.
b
Includes
fair
value
of
immaterial
assets
and/or
liabilities
developed
using
various
valuation
techniques
and
unobservable
inputs.
May
also
include
values
derived
using
recent
transactions,
private
transaction
prices
or
non-public
third-party
pricing
information
which
is
unobservable.
12.
Fair
Value
Measurements
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
178
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
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
14.
Subsequent
Events
(continued)
Franklin
Tax-Free
Trust
Report
of
Independent
Registered
Public
Accounting
Firm
179
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
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
schedules
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
and
Franklin
New
Jersey
Tax-Free
Income
Fund
(five
of
the
funds
constituting
Franklin
Tax-Free
Trust,
hereafter
collectively
referred
to
as
the
"Funds")
as
of
February
28,
2023
the
related
statements
of
operations
for
the
year
ended
February
28,
2023
the
statements
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
ended
February
28,
2023
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,
2023
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,
2023
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,
2023
by
correspondence
with
the
custodian,
transfer
agent
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,
2023
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)
180
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,
2023:
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
Divid
ends
Distributed
§852(b)(5)(A)
$63,831,531
$16,147,576
$228,427,737
Pursuant
to:
Franklin
Massachusetts
Tax-Free
Income
Fund
Franklin
New
Jersey
Tax-Free
Income
Fund
Exempt-Interest
Dividends
Distributed
§852(b)(5)(A)
$8,693,093
$20,392,255
Franklin
Tax-Free
Trust
Board
Members
and
Officers
181
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
118
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
118
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
118
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
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
Edith
E.
Holiday
(1952)
Lead
Independent
Trustee
Trustee
since
1998
and
Lead
Independent
Trustee
since
2019
118
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
118
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
118
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
183
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
2021
110
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)
Chairman
of
the
Board
and
Trustee
Chairman
of
the
Board
since
January
2023
and
Trustee
since
2007
129
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
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)
Trustee
Since
2013
118
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
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
184
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.;
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;
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
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
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
185
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
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
186
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
Schedule
of
Investments
The
Trust
files
a
complete
schedule
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
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
04/23
©
2023
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,
2023
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franklintempleton.com
Annual
Report
1
SHAREHOLDER
LETTER
Dear
Shareholder:
During
the
12
months
ended
February
28,
2023,
the
U.S.
economy
showed
mixed
results
as
it
continued
to
recover
from
the
COVID-19
pandemic
amid
declining
unemployment,
rising
wages
and
higher
personal
consumption.
Although
U.S.
gross
domestic
product
contracted
in
2022’s
first
and
second
quarters
given
declines
in
inventory
and
business
investment,
it
grew
in
the
remainder
of
the
year
as
the
trade
deficit
narrowed
and
consumer
spending
continued
to
expand.
Inflation
rose
through
June
2022,
largely
due
to
pandemic-related
supply-chain
issues
and
higher
energy
prices
exacerbated
by
Russia’s
invasion
of
Ukraine.
However,
inflation
eased
later
in
the
period
due
to
intervention
by
the
U.S.
Federal
Reserve
(Fed)
and
falling
commodity
prices.
To
combat
high
inflation,
the
Fed
ended
monthly
asset
purchases
in
March
2022
and
raised
the
federal
funds
rate
at
every
meeting
during
the
12-month
reporting
period,
increasing
it
by
a
total
of
4.50%
(from
a
range
of
0.00%–
0.25%
to
4.50%–4.75%
by
period-end).
The
Fed
also
stated
its
intention
to
continue
reducing
its
U.S.
Treasury,
government
agency
debt
and
agency
mortgage-backed
securities
holdings,
and
it
anticipated
ongoing
federal
funds
rate
increases
would
be
appropriate
to
return
inflation
to
its
2%
goal.
During
the
12-month
period,
municipal
bonds,
as
measured
by
the
Bloomberg
Municipal
Bond
Index,
posted
a
-5.10%
total
return,
influenced
by
fixed
income
market
volatility
and
tighter
monetary
policy,
resulting
in
net
outflows
from
municipals,
though
demand
has
been
strong
so
far
in
2023.
1
Despite
mixed
signs
from
the
U.S.
economy,
municipal
bond
fundamentals
remained
strong
due
to
prudent
fiscal
management
and
many
issuers
reporting
budget
surpluses
for
2022
in
addition
to
federal
government
transfers.
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
for
up-to-date
advice
on
their
holdings.
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,
Gregory
E.
Johnson
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,
2023,
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
Schedules
of
Investments
47
Financial
Statements
117
Notes
to
Financial
Statements
130
Report
of
Independent
Registered
Public
Accounting
Firm
149
Tax
Information
150
Board
Members
and
Officers
151
Shareholder
Information
156
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,
2023,
the
U.S.
Federal
Reserve
(Fed)
continued
to
battle
surging
inflation,
which
started
to
come
down
from
its
peak
of
9.1%
year-
over-year
in
June
2022.
After
hiking
the
federal
funds
rate
by
75
basis
points
(bps)
at
each
of
its
meetings
from
May
through
November
2022,
the
Fed
decreased
the
size
of
its
increases
to
50
bps
in
December
and
25
bps
in
February
2023.
Despite
investor
optimism
late
in
2022
that
peak
hawkishness
had
been
reached,
a
surprisingly
resilient
labor
market
in
early
2023
dampened
confidence
that
inflation
would
quickly
return
to
the
Fed’s
2%
target.
The
municipal
bond
(muni)
market
witnessed
a
very
challenging
year
in
2022
as
the
Fed’s
monetary
policy
tightening
put
downward
pressure
on
this
long-duration
sector.
High
levels
of
volatility
resulted
in
significant
outflows
from
muni
retail
vehicles
until
the
end
of
2022.
The
first
two
months
of
2023
saw
a
reversal
of
this
trend,
with
strong
investor
demand
meeting
reduced
supply
and
leading
to
positive
absolute
returns
year-to-date.
Credit
fundamentals
remained
strong,
as
many
issuers
benefited
from
federal
aid
received
during
the
COVID-19
crisis
and
from
the
subsequent
economic
recovery.
For
the
12-month
period,
U.S.
fixed
income
sectors
saw
mixed
performance
relative
to
equities,
as
measured
by
the
Standard
&
Poor’s
®
500
Index,
which
posted
a
-7.72%
total
return
for
the
period.
1
Investment-grade
munis,
as
measured
by
the
Bloomberg
Municipal
Bond
Index,
posted
a
-5.10%
total
return,
while
U.S.
Treasuries,
as
measured
by
the
Bloomberg
U.S.
Treasury
Index,
posted
a
-10.08%
total
return,
and
investment-grade
corporate
bonds,
as
measured
by
the
Bloomberg
U.S.
Corporate
Investment
Grade
Index,
posted
a
-10.43%
total
return.
1
The
foregoing
information
reflects
our
analysis
and
opinions
as
of
February
28,
2023.
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,
2023,
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,
2023
.
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
$10.97
on
February
28,
2022,
to
$9.92
on
February
28,
2023.
The
Fund’s
Class
A
shares
paid
dividends
totaling
23.3031
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
2.17%,
based
on
an
annualization
of
February's
1.8656
cents
per
share
monthly
dividend
and
the
maximum
offering
price
of
$10.31
on
February
28,
2023.
An
investor
in
the
2023
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
4.00%
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
slowed,
contracting
in
the
first
half
of
2022
before
returning
to
growth
in
the
third
quarter,
consistent
with
a
national
recovery.
However,
Alabama’s
strong
and
diversified
manufacturing
base,
including
companies
in
the
automotive,
shipbuilding,
steelmaking
and
aerospace
industries,
helped
its
economy’s
resilience.
Alabama’s
unemployment
rate
began
the
period
at
2.6%
and
ended
at
2.5%,
compared
with
the
3.6%
national
rate.
Following
significant
growth
in
tax
revenues
for
fiscal
year
(FY)
2022,
Alabama
enacted
a
general
fund
budget
for
FY
2023
that
included
raises
for
state
employees
and
increased
funds
for
Medicaid
and
corrections.
Alabama’s
net
tax-supported
debt
was
$1,172
per
capita
and
2.4%
of
personal
income,
near
the
$1,179
and
2.1%
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
strong
management
of
financial
operations,
growing
reserves
and
low
leverage
and
fixed
costs.
According
to
Moody’s,
Alabama’s
challenges
include
economic
performance
that
lags
its
peers
and
demographic
challenges.
Moody’s
stable
outlook
reflected
its
assessment
that
Alabama
has
the
ability
to
withstand
a
moderate
shock
to
revenue
in
a
period
of
economic
weakness.
*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
2/28/23
%
of
Total
Investments*
Education
26.25%
Health
Care
19.60%
Utilities
15.43%
Local
9.55%
Refunded
9.22%
Industrial
Dev.
Revenue
and
Pollution
Control
7.42%
Transportation
4.66%
Housing
4.62%
Lease
1.98%
Special
Tax
1.27%
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,
States
–
US:
Debt,
pension
and
OPEB
liabilities
all
up
in
fiscal
2021
,
9/7/22.
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
Schedule
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,
2023,
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,
2023
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
2/28/23
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
-7.45%
-10.92%
5-Year
+3.34%
-0.11%
10-Year
+12.95%
+0.84%
Advisor
6
1-Year
-7.14%
-7.14%
5-Year
+4.46%
+0.88%
10-Year
+14.39%
+1.35%
30-Day
Standardized
Yield
9
Taxable
Equivalent
30-Day
Standardized
Yield
8
Share
Class
Distribution
Rate
7
Taxable
Equivalent
Distribution
Rate
8
(with
fee
waiver)
(without
fee
waiver)
(with
fee
waiver)
(without
fee
waiver)
A
2.17%
4.00%
2.84%
2.73%
5.24%
5.04%
Advisor
2.49%
4.59%
3.21%
3.09%
5.92%
5.70%
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
1
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
(2/28/13–2/28/23)
Advisor
Class
(2/28/13–2/28/23)
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.
Gross
expenses
are
the
Fund’s
total
annual
operating
expenses
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
Net
expenses
reflect
contractual
fee
waivers,
expense
caps
and/or
reimbursements,
which
cannot
be
terminated
prior
to
6/30/23
without
Board
consent.
Additional
amounts
may
be
voluntarily
waived
and/or
reimbursed
and
may
be
modified
or
discontinued
at
any
time
without
notice.
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.
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.
7.
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
2/28/23.
8.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
12/20/22
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.
9.
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.
10.
Source:
FactSet.
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.
11.
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
(3/1/22–2/28/23)
Share
Class
Net
Investment
Income
A
$0.233031
A1
$0.248232
C
$0.191648
R6
$0.261354
Advisor
$0.258351
Total
Annual
Operating
Expenses
11
Share
Class
With
Fee
Waiver
Without
Fee
Waiver
A
0.90%
0.91%
Advisor
0.65%
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
9/1/22
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$999.90
$4.46
$1,020.33
$4.51
0.90%
A1
$1,000
$1,001.70
$3.73
$1,021.07
$3.77
0.75%
C
$1,000
$998.90
$6.41
$1,018.38
$6.47
1.29%
R6
$1,000
$1,001.30
$3.08
$1,021.71
$3.12
0.62%
Advisor
$1,000
$1,002.20
$3.23
$1,021.56
$3.27
0.65%
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,
2023
.
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 $11.57
on
February
28,
2022,
to $10.40
on
February
28,
2023.
The
Fund’s
Class
A
shares
paid
dividends
totaling 27.8437
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
2.37%,
based
on
an
annualization
of the
February's 2.1338
cents
per
share
monthly
dividend
and
the
maximum
offering
price
of
$10.81
on
February
28,
2023.
An
investor
in
the 2023 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 4.43%
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
.
State
Update
During
the
12-month
period,
Georgia’s
economy
slowed,
although
growth
rebounded
in
the
third
quarter
of
2022,
consistent
with
a
national
recovery.
The
state’s
economy
benefited
from
above
average
population
and
employment
growth,
although
it
is
relatively
dependent
on
international
travel,
which
has
been
slow
to
recover.
Georgia’s
unemployment
rate
began
the
period
at
3.2%
and
ended
at
3.1%,
compared
with
the
3.6%
national
rate.
In
May
2022,
the
governor
signed
a
fiscal
year
(FY)
2023
budget
that
restored
pandemic-related
reductions
in
education
and
increased
salaries
for
teachers
and
state
employees.
A
proposed
FY
2024
budget
would
add
further
raises
for
teachers
and
state
employees,
while
providing
property
tax
relief.
The
state’s
net
tax-supported
debt
was
$1,087
per
capita
and
2.0%
of
personal
income,
marginally
lower
than
the
$1,179
and
2.1%
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
low
leverage,
strong
fiscal
governance
and
solid
fiscal
reserves.
4
According
to
Moody’s,
challenges
included
below
average
per-capita
income
and
indirect
exposure
to
high
education
pension
burdens.
The
stable
outlook
recognizes
Moody’s
view
that
Georgia
is
likely
to
maintain
solid
reserves,
while
outpacing
the
nation
in
economic
growth.
Portfolio
Composition
2/28/23
%
of
Total
Investments*
Health
Care
21.63%
Housing
14.50%
Utilities
14.30%
Local
10.27%
Education
8.90%
Transportation
8.02%
Industrial
Dev.
Revenue
and
Pollution
Control
7.49%
Special
Tax
6.64%
Refunded
5.24%
Lease
2.11%
State
General
Obligation
0.90%
*Does
not
include
cash
and
cash
equivalents.
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,
States
–
US:
Debt,
pension
and
OPEB
liabilities
all
up
in
fiscal
2021,
9/7/22.
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
Schedule
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,
2023,
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,
2023
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
2/28/23
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
-7.71%
-11.17%
5-Year
+2.10%
-0.35%
10-Year
+11.08%
+0.67%
Advisor
6
1-Year
-7.48%
-7.48%
5-Year
+3.21%
+0.63%
10-Year
+12.59%
+1.19%
30-Day
Standardized
Yield
9
Taxable
Equivalent
30-Day
Standardized
Yield
8
Share
Class
Distribution
Rate
7
Taxable
Equivalent
Distribution
Rate
8
(with
fee
waiver)
(without
fee
waiver)
(with
fee
waiver)
(without
fee
waiver)
A
2.37%
4.43%
2.93%
2.93%
5.48%
5.48%
Advisor
2.70%
5.03%
3.30%
3.29%
6.15%
6.13%
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
1
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
(2/28/13–2/28/23)
Advisor
Class
(2/28/13–2/28/23)
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.
Gross
expenses
are
the
Fund’s
total
annual
operating
expenses
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Net
expenses
are
capped
under
a
contractual
agreement,
which
cannot
be
terminated
prior
to
6/30/23
without
Board
consent.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
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.
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.
7.
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
2/28/23.
8.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
12/20/22
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.
9.
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.
10.
Source:
FactSet.
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.
11.
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
(3/1/22–2/28/23)
Share
Class
Net
Investment
Income
A
$0.278437
A1
$0.294299
C
$0.234853
R6
$0.309305
Advisor
$0.304895
Total
Annual
Operating
Expenses
11
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
9/1/22
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$999.60
$4.47
$1,020.32
$4.52
0.90%
A1
$1,000
$1,001.30
$3.73
$1,021.07
$3.77
0.75%
C
$1,000
$998.50
$6.40
$1,018.39
$6.47
1.29%
R6
$1,000
$1,001.00
$3.05
$1,021.75
$3.08
0.61%
Advisor
$1,000
$1,000.80
$3.23
$1,021.56
$3.27
0.65%
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,
2023.
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
$11.03
on
February
28,
2022,
to
$9.96
on
February
28,
2023.
The
Fund’s
Class
A
shares
paid
dividends
totaling
24.3680
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
2.26%,
based
on
an
annualization
of
February’s
1.9500
cents
per
share
monthly
dividend
and
the
maximum
offering
price
of
$10.35
on
February
28,
2023.
An
investor
in
the
2023
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
4.11%
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
slowed,
contracting
in
the
first
half
of
2022
before
returning
to
growth
in
the
third
quarter,
consistent
with
a
national
recovery.
Louisiana’s
economy
benefited
from
its
large
petroleum-
related
industry
base
and
the
presence
of
liquid
natural
gas
exporting
infrastructure.
Louisiana’s
unemployment
rate
began
the
period
at
3.9%
and
ended
at
3.6%,
compared
with
the
3.6%
national
rate.
In
June
2022,
the
governor
signed
a
budget
for
fiscal
year
2023
that
included
pay
increases
for
government
employees
and
teachers,
as
well
as
significant
infrastructure
investments,
particularly
in
projects
to
replace
and
expand
highway
bridges.
The
state’s
net
tax-supported
debt
was
$1,735
per
capita
and
3.2%
of
personal
income,
above
the
$1,179
and
2.1%
national
medians,
respectively.
3
Independent
credit
rating
agency
Moody’s
Investors
Service
upgraded
Louisiana’s
general
obligation
bonds’
rating
to
Aa2
with
a
stable
outlook.
4
The
upgrade
reflected
Moody’s
view
that
Louisiana
had
seen
a
sustained
strengthening
of
its
state
finances.
Moody’s
stated
that
Louisiana’s
debt
and
pension
liabilities
were
moderate
compared
to
other
states
and
it
had
sound
financial
management
practices.
According
to
Moody’s,
challenges
included
Louisiana’s
slow
population
growth,
revenue
volatility
due
to
dependency
on
oil
and
gas
extraction
and
constraints
on
raising
revenue
and
reducing
expenditures.
*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
2/28/23
%
of
Total
Investments*
Health
Care
18.11%
Transportation
14.81%
Education
13.54%
Special
Tax
11.47%
Housing
10.52%
Utilities
9.40%
Refunded
7.53%
Local
6.97%
Lease
3.53%
State
General
Obligation
3.01%
Other
Revenue
Bonds
1.11%
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,
States
–
US:
Debt,
pension
and
OPEB
liabilities
all
up
in
fiscal
2021
,
9/7/22.
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
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
71
.
Franklin
Louisiana
Tax-Free
Income
Fund
18
franklintempleton.com
Annual
Report
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,
2023,
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,
2023
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
2/28/2
3
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
-7.49%
-10.96%
5-Year
+3.95%
+0.01%
10-Year
+12.99%
+0.84%
Advisor
6
1-Year
-7.26%
-7.26%
5-Year
+5.18%
+1.01%
10-Year
+14.53%
+1.37%
Share
Class
Distribution
Rate
7
Taxable
Equivalent
Distribution
Rate
8
30-Day
Standardized
Yield
9
Taxable
Equivalent
30-Day
Standardized
Yield
8
A
2.26%
4.11%
3.03%
5.51%
Advisor
2.58%
4.70%
3.40%
6.19%
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
1
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
(2/28/13–2/28/23)
Advisor
Class
(2/28/13–2/28/23)
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.
Gross
expenses
are
the
Fund’s
total
annual
operating
expenses
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Net
expenses
are
capped
under
a
contrac-
tual
agreement,
which
cannot
be
terminated
prior
to
6/30/23
without
Board
consent.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
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.
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.
7.
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
2/28/23.
8.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
12/20/22
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.
9.
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.
10.
Source:
FactSet.
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.
11.
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
(3/1/22–2/28/23)
Share
Class
Net
Investment
Income
A
$0.243680
A1
$0.258691
C
$0.202591
R6
$0.273054
Advisor
$0.268669
Total
Annual
Operating
Expenses
11
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
9/1/22
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,000.50
$4.51
$1,020.28
$4.56
0.91%
A1
$1,000
$1,001.30
$3.77
$1,021.03
$3.81
0.76%
C
$1,000
$998.60
$6
.44
$1,018.35
$6.50
1.30%
R6
$1,000
$1,002.90
$3.07
$1,021.73
$3.10
0.62%
Advisor
$1,000
$1,002.70
$3.29
$1,021.51
$3.32
0.66%
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,
2023.
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
$10.71
on
February
28,
2022,
to
$9.75
on
February
28,
2023.
The
Fund’s
Class
A
shares
paid
dividends
totaling
25.6523
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
2.51%,
based
on
an
annualization
of
February’s
2.1179
cents
per
share
monthly
dividend
and
the
maximum
offering
price
of
$10.13
on
February
28,
2023.
An
investor
in
the
2023
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
5.00%
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
slowed,
although
growth
rebounded
in
the
third
quarter
of
2022,
consistent
with
a
national
recovery.
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
3.4%
and
ended
at
2.9%,
compared
with
the
3.6%
national
rate.
The
general
assembly
approved
a
fiscal
year
(FY)
2023
budget
that
expanded
health
care
services
and
increased
education
spending.
The
governor’s
proposed
FY
2024
budget
would
provide
additional
funds
for
education
and
Medicaid.
The
state’s
net
tax-supported
debt
was
$2,818
per
capita
and
4.1%
of
personal
income,
well
above
the
$1,179
and
2.1%
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
and
vulnerability
to
swings
in
federal
spending
priorities.
Moody’s
stable
outlook
reflected
its
view
that
the
state
is
able
to
make
midcourse
corrections,
and
it
has
often
taken
difficult
actions
to
strengthen
its
balance
sheet.
*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
2/28/23
%
of
Total
Investments*
Health
Care
19.95%
Housing
18.21%
Transportation
15.35%
Education
11.97%
Lease
8.69%
Utilities
6.83%
Local
6.39%
Special
Tax
5.19%
Refunded
3.78%
State
General
Obligation
3.64%
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,
States
–
US:
Debt,
pension
and
OPEB
liabilities
all
up
in
fiscal
2021
,
9/7/22.
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
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
80
.
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,
2023,
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,
2023
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
2/28/23
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
-6.56%
-10.07%
5-Year
+3.38%
-0.10%
10-Year
+10.59%
+0.63%
Advisor
1-Year
-6.41%
-6.41%
5-Year
+4.59%
+0.90%
10-Year
+12.48%
+1.18%
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
2.51%
5.00%
2.76%
2.75%
5.49%
5.47%
Advisor
2.84%
5.65%
3.12%
3.11%
6.21%
6.19%
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
1
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
(2/28/13–2/28/23)
Advisor
Class
(2/28/13–2/28/23)
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.
Gross
expenses
are
the
Fund’s
total
annual
operating
expenses
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Net
expenses
are
capped
under
a
contrac-
tual
agreement,
which
cannot
be
terminated
prior
to
6/30/23
without
Board
consent.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
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
2/28/23.
7.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
12/20/22
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.
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:
FactSet.
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
(3/1/22–2/28/23)
Share
Class
Net
Investment
Income
A
$0.256523
A1
$0.271357
C
$0.215486
R6
$0.286056
Advisor
$0.281246
Total
Annual
Operating
Expenses
10
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
9/1/22
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,002.60
$4.50
$1,020.30
$4.54
0.91%
A1
$1,000
$1,003.30
$3.75
$1,021.05
$3.78
0.76%
C
$1,000
$1,000.50
$6.41
$1,018.38
$6.47
1.29%
R6
$1,000
$1,005.00
$3.05
$1,021.75
$3.08
0.61%
Advisor
$1,000
$1,003.80
$3.26
$1,021.54
$3.29
0.66%
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
,
2023
.
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
$11.48
on
February
28,
2022,
to
$10.27
on
February
28,
2023.
The
Fund’s
Class
A
shares
paid
dividends
totaling
30.2169
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
2.69%,
based
on
an
annualization
of
February’s
2.3915
cents
per
share
monthly
dividend
and
the
maximum
offering
price
of
$10.67
on
February
28,
2023.
An
investor
in
the
2023
maximum
combined
effective
federal
and
Missouri
personal
income
tax
bracket
of
46.10%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
4.99%
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
slowed,
although
the
state
returned
to
growth
in
the
third
quarter
of
2022,
consistent
with
a
national
recovery.
Missouri’s
high
industrial
and
employment
diversity
and
low
business
costs
helped
its
economy’s
resilience.
The
state’s
unemployment
rate
began
the
period
at
2.7%
and
ended
at
2.6%,
compared
with
the
3.6%
national
rate.
The
governor
signed
a
fiscal
year
(FY)
2023
budget
that
funded
a
significant
rise
in
minimum
teacher
salaries
and
Medicaid
expansion,
and
a
proposed
FY
2024
budget
would
provide
significant
funds
for
infrastructure
upgrades.
The
state’s
net
tax-supported
debt
was
$398
per
capita
and
0.7%
of
personal
income,
substantially
below
the
$1,179
and
2.1%
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
conservative
approach
to
finances,
strong
liquidity
and
reserves
compared
to
revenue
and
strong
executive
powers
to
cut
expenditures
midyear.
According
to
Moody’s,
challenges
include
relatively
low
economic
growth
and
resident
incomes
along
with
a
requirement
to
issue
taxpayer
rebates
when
revenue
growth
exceeds
personal
income
growth.
Moody’s
stable
outlook
reflected
its
assessment
of
the
state’s
strong
liquidity
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
2/28/23
%
of
Total
Investment
s*
Health
Care
27.95%
Lease
19.83%
Utilities
16.06%
Education
10.17%
Housing
7.72%
Local
7.05%
Transportation
6.16%
Special
Tax
2.98%
Industrial
Dev.
Revenue
and
Pollution
Control
2.08%
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,
States
–
US:
Debt,
pension
and
OPEB
liabilities
all
up
in
fiscal
2021,
9/7/22.
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
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
89
.
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,
2023,
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,
2023
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
2/28/23
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
-7.92%
-11.37%
5-Year
+3.21%
-0.13%
10-Year
+9.96%
+0.57%
Advisor
1-Year
-7.77%
-7.77%
5-Year
+4.42%
+0.87%
10-Year
+11.75%
+1.12%
Share
Class
Distribution
Rate
6
Taxable
Equivalent
Distribution
Rate
7
30-Day
Standardized
Yield
8
Taxable
Equivalent
30-Day
Standardized
Yield
7
7
A
2.69%
4.99%
2.90%
5.38%
Advisor
3.03%
5.62%
3.27%
6.07%
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
1
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
(2/28/13–2/28/23)
Advisor
Class
(2/28/13–2/28/23)
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.
Gross
expenses
are
the
Fund’s
total
annual
operating
expenses
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Net
expenses
are
capped
under
a
contractual
agreement,
which
cannot
be
terminated
prior
to
6/30/23
without
Board
consent.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
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
2/28/23.
7.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
12/20/22
for
the
maximum
combined
effective
federal
and
Missouri
personal
income
tax
rate
of
46.10%,
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:
FactSet.
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
(3/1/22–2/28/23)
Share
Class
Net
Investment
Income
A
$0.302169
A1
$0.317985
C
$0.259246
R6
$0.332190
Advisor
$0.328521
Total
Annual
Operating
Expenses
10
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
9/1/22
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$995.90
$4.13
$1,020.65
$4.18
0.84%
A1
$1,000
$997.70
$3.39
$1,021.40
$3.43
0.68%
C
$1,000
$994.00
$6.07
$1,018.71
$6.14
1.23%
R6
$1,000
$998.30
$2.72
$1,022.08
$2.75
0.55%
Advisor
$1,000
$997.20
$2.89
$1,021.90
$2.93
0.58%
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,
2023.
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
$11.31
on
February
28,
2022,
to
$10.25
on
February
28,
2023.
The
Fund’s
Class
A
shares
paid
dividends
totaling
23.3291
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
2.19%,
based
on
an
annualization
of
February’s
1.9440
cents
per
share
monthly
dividend
and
the
maximum
offering
price
of
$10.65
on
February
28,
2023.
An
investor
in
the
2023
maximum
combined
effective
federal
and
North
Carolina
personal
income
tax
bracket
of
45.55%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
4.02%
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
slowed,
although
growth
rebounded
in
the
third
quarter
of
2022,
consistent
with
a
national
recovery.
North
Carolina
benefited
from
strong
employment
and
population
growth,
as
well
as
a
favorable
business
climate.
The
state’s
unemployment
rate
began
the
period
at
3.4%
and
ended
at
3.6%,
compared
with
the
3.6%
national
rate.
In
July
2022
the
governor
signed
an
addendum
to
the
previously-enacted
budget
for
the
2022–2023
biennium
that
increased
pay
for
teachers
and
state
employees.
The
state’s
net
tax-supported
debt
was
$686
per
capita
and
1.2%
of
personal
income,
substantially
lower
than
the
$1,179
and
2.1%
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
that
the
state
benefits
from
a
history
of
conservative
fiscal
management,
strong
executive
powers
to
reduce
spending
and
commitment
to
maintaining
strong
reserves
and
affordable
liabilities.
According
to
Moody’s,
credit
challenges
include
continuing
to
manage
expenditure
pressures
amid
continued
growth,
as
well
as
the
differences
between
the
governor
and
state
legislature
on
budget
priorities.
Moody’s
stable
outlook
reflected
its
assessment
of
North
Carolina’s
conservative
fiscal
management
and
budgeting
practices.
*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
2/28/23
%
of
Total
Investments*
Education
21.00%
Health
Care
19.45%
Utilities
14.43%
Transportation
10.39%
Housing
10.33%
Lease
9.38%
Refunded
7.19%
Local
4.10%
Special
Tax
2.25%
State
General
Obligation
1.48%
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,
States
–
US:
Debt,
pension
and
OPEB
liabilities
all
up
in
fiscal
2021
,
9/7/22.
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
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
100
.
Franklin
North
Carolina
Tax-Free
Income
Fund
36
franklintempleton.com
Annual
Report
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,
2023,
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,
2023
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
2/28/23
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
-7.31%
-10.79%
5-Year
+2.35%
-0.30%
10-Year
+6.30%
+0.23%
Advisor
1-Year
-7.08%
-7.08%
5-Year
+3.56%
+0.70%
10-Year
+8.13%
+0.78%
Share
Class
Distribution
Rate
6
Taxable
Equivalent
Distribution
Rate
7
30-Day
Standardized
Yield
8
Taxable
Equivalent
30-Day
Standardized
Yield
7
A
2.19%
4.02%
2.90%
5.33%
Advisor
2.51%
4.61%
3.27%
6.01%
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
1
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
(2/28/13–2/28/23)
Advisor
Class
(2/28/13–2/28/23)
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.
Gross
expenses
are
the
Fund’s
total
annual
operating
expenses
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Net
expenses
are
capped
under
a
contrac-
tual
agreement,
which
cannot
be
terminated
prior
to
6/30/23
without
Board
consent.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
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
2/28/23.
7.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
12/20/22
for
the
maximum
combined
effective
federal
and
North
Carolina
personal
income
tax
rate
of
45.55%,
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:
FactSet.
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
(3/1/22–2/28/23)
Share
Class
Net
Investment
Income
A
$0.233291
A1
$0.248820
C
$0.190681
R6
$0.263457
Advisor
$0.259154
Total
Annual
Operating
Expenses
10
Share
Class
A
0.82%
Advisor
0.57%
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
9/1/22
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,000.10
$4.23
$1,020.56
$4.28
0.85%
A1
$1,000
$1,001.80
$3.49
$1,021.31
$3.52
0.70%
C
$1,000
$998.10
$6.16
$1,018.63
$6.22
1.24%
R6
$1,000
$1,001.50
$2.80
$1,022.00
$2.83
0.56%
Advisor
$1,000
$1,002.30
$3.00
$1,021.80
$3.03
0.60%
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,
2023
.
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
$10.79
on
February
28,
2022,
to
$9.72
on
February
28,
2023.
The
Fund’s
Class
A
shares
paid
dividends
totaling
22.3596
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
2.21%,
based
on
an
annualization
of
February’s
1.8628
cents
per
share
monthly
dividend
and
the
maximum
offering
price
of
$10.10
on
February
28,
2023.
An
investor
in
the
2023
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
4.13%
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
slowed,
although
growth
rebounded
in
the
third
quarter
of
2022,
consistent
with
a
national
recovery.
The
commonwealth’s
economy
benefited
from
a
sizable
federal
presence
and
a
growing
technology-oriented
services
industry.
Virginia’s
unemployment
rate
began
the
period
at
2.9%
and
ended
at
3.2%,
compared
with
the
3.6%
national
rate.
In
June
2022,
the
governor
signed
a
biennial
budget
for
2023–2024
that
raised
the
standard
income
tax
deduction,
eliminated
a
grocery
sales
tax
and
increased
education
spending.
An
amendment
to
the
budget
proposed
in
December
2022
would
provide
additional
tax
relief
and
bonuses
for
teachers
and
state
employees.
Virginia’s
net
tax-supported
debt
was
$1,823
per
capita
and
2.8%
of
personal
income,
higher
than
the
$1,179
and
2.1%
national
medians,
respectively.
3
Independent
credit
rating
agency
Moody’s
Investors
Service
maintained
Virginia’s
general
obligation
bonds’
Aaa
rating
with
a
stable
outlook.
The
rating
reflected
Moody’s
view
of
Virginia’s
long-standing
history
of
conservative
fiscal
management
and
strong
debt
and
pension
management
practices.
4
According
to
Moody’s,
Virginia’s
challenges
include
education
and
transportation
spending
pressures
amid
more
limited
resources
and
vulnerability
to
federal
downsizing.
Moody’s
stable
outlook
reflected
its
assessment
of
Virginia’s
healthy
revenue
performance
and
structurally
balanced
operations.
*Does
not
include
cash
and
cash
equivalents.
Portfolio
Composition
2/28/23
%
of
Total
Investments*
**
Health
Care
22.04%
Transportation
16.42%
Utilities
12.37%
Lease
10.15%
Refunded
8.92%
Education
8.73%
Special
Tax
8.73%
Housing
6.10%
Other
Revenue
Bonds
2.23%
State
General
Obligation
1.98%
Industrial
Dev.
Revenue
and
Pollution
Control
1.18%
Local
1.15%
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,
States
–
US:
Debt,
pension
and
OPEB
liabilities
all
up
in
fiscal
2021
,
9/7/22.
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
Schedule
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,
2023,
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,
2023
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
2/28/23
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
-7.85%
-11.31%
5-Year
+0.17%
-0.73%
10-Year
+6.59%
+0.26%
Advisor
1-Year
-7.61%
-7.61%
5-Year
+1.36%
+0.27%
10-Year
+8.51%
+0.82%
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
2.21%
4.13%
2.98%
2.97%
5.58%
5.56%
Advisor
2.53%
4.73%
3.35%
3.34%
6.27%
6.25%
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
1
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
(2/28/13–2/28/23)
Advisor
Class
(2/28/13–2/28/23)
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.
Gross
expenses
are
the
Fund’s
total
annual
operating
expenses
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Net
expenses
are
capped
under
a
contractual
agreement,
which
cannot
be
terminated
prior
to
6/30/23
without
Board
consent.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
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
2/28/23.
7.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
12/20/22
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.
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:
FactSet.
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
(3/1/22–2/28/23)
Share
Class
Net
Investment
Income
A
$0.223596
A1
$0.238495
C
$0.182606
R6
$0.253216
Advisor
$0.248411
Total
Annual
Operating
Expenses
10
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
9/1/22
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$996.80
$4.29
$1,020.50
$4.34
0.87%
A1
$1,000
$997.50
$3.55
$1,021.24
$3.59
0.72%
C
$1,000
$994.80
$6.22
$1,018.56
$6.29
1.26%
R6
$1,000
$998.20
$2.85
$1,021.94
$2.88
0.57%
Advisor
$1,000
$998.00
$3.05
$1,021.74
$3.09
0.62%
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
2023
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
$11.18
$11.40
$10.85
$10.79
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.24
0.22
0.28
0.30
0.15
Net
realized
and
unrealized
gains
(losses)
...........
(1.06)
(0.21)
(0.23)
0.57
0.06
Total
from
investment
operations
....................
(0.82)
0.01
0.05
0.87
0.21
Less
distributions
from:
Net
investment
income
..........................
(0.23)
(0.22)
(0.27)
(0.32)
(0.15)
Net
asset
value,
end
of
year
.......................
$9.92
$10.97
$11.18
$11.40
$10.85
Total
return
e
...................................
(7.45)%
0.02%
0.49%
8.08%
1.98%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
......
0.93%
0.91%
0.91%
0.91%
0.92%
Expenses
net
of
waiver
and
payments
by
affiliates
g
......
0.90%
0.91%
0.91%
0.91%
0.92%
Net
investment
income
...........................
2.34%
1.91%
2.46%
2.70%
2.91%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$42,244
$46,633
$30,415
$16,423
$7,334
Portfolio
turnover
rate
............................
19.06%
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
74
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.95
$11.16
$11.38
$10.84
$10.88
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.25
0.23
0.30
0.32
0.33
Net
realized
and
unrealized
gains
(losses)
...........
(1.04)
(0.20)
(0.23)
0.55
(0.04)
Total
from
investment
operations
....................
(0.79)
0.03
0.07
0.87
0.29
Less
distributions
from:
Net
investment
income
..........................
(0.25)
(0.24)
(0.29)
(0.33)
(0.33)
Net
asset
value,
end
of
year
.......................
$9.91
$10.95
$11.16
$11.38
$10.84
Total
return
d
...................................
(7.24)%
0.17%
0.64%
8.16%
2.76%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.78%
0.76%
0.77%
0.76%
0.77%
Expenses
net
of
waiver
and
payments
by
affiliates
e
......
0.75%
0.76%
0.77%
0.76%
0.77%
Net
investment
income
...........................
2.49%
2.07%
2.66%
2.85%
3.06%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$125,644
$163,571
$174,802
$186,486
$188,290
Portfolio
turnover
rate
............................
19.06%
20.50%
24.03%
4.87%
8.57%
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,
2023
2022
2021
2020
a
2019
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.10
$11.32
$11.54
$10.98
$11.02
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.19
0.17
0.24
0.26
0.27
Net
realized
and
unrealized
gains
(losses)
...........
(1.05)
(0.22)
(0.23)
0.57
(0.04)
Total
from
investment
operations
....................
(0.86)
(0.05)
0.01
0.83
0.23
Less
distributions
from:
Net
investment
income
..........................
(0.19)
(0.17)
(0.23)
(0.27)
(0.27)
Net
asset
value,
end
of
year
.......................
$10.05
$11.10
$11.32
$11.54
$10.98
Total
return
d
...................................
(7.74)%
(0.38)%
(0.01)%
7.68%
2.15%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
1.32%
1.30%
1.31%
1.31%
1.32%
Expenses
net
of
waiver
and
payments
by
affiliates
e
......
1.29%
1.30%
1.31%
1.31%
1.32%
Net
investment
income
...........................
1.89%
1.51%
2.10%
2.30%
2.51%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$8,264
$13,416
$23,374
$31,175
$30,641
Portfolio
turnover
rate
............................
19.06%
20.50%
24.03%
4.87%
8.57%
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,
2023
2022
2021
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.95
$11.17
$11.39
$10.84
$10.88
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.26
0.25
0.31
0.33
0.35
Net
realized
and
unrealized
gains
(losses)
...........
(1.04)
(0.22)
(0.22)
0.57
(0.04)
Total
from
investment
operations
....................
(0.78)
0.03
0.09
0.90
0.31
Less
distributions
from:
Net
investment
income
..........................
(0.26)
(0.25)
(0.31)
(0.35)
(0.35)
Net
asset
value,
end
of
year
.......................
$9.91
$10.95
$11.17
$11.39
$10.84
Total
return
....................................
(7.11)%
0.22%
0.77%
8.39%
2.78%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.66%
0.65%
0.65%
0.65%
0.65%
Expenses
net
of
waiver
and
payments
by
affiliates
d
......
0.62%
0.63%
0.63%
0.63%
0.63%
Net
investment
income
...........................
2.62%
2.19%
2.78%
2.98%
3.20%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$1,786
$2,308
$1,756
$1,664
$824
Portfolio
turnover
rate
............................
19.06%
20.50%
24.03%
4.87%
8.57%
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
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,
2023
2022
2021
2020
a
2019
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.95
$11.17
$11.39
$10.84
$10.88
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.26
0.25
0.31
0.33
0.34
Net
realized
and
unrealized
gains
(losses)
...........
(1.04)
(0.22)
(0.23)
0.56
(0.04)
Total
from
investment
operations
....................
(0.78)
0.03
0.08
0.89
0.30
Less
distributions
from:
Net
investment
income
..........................
(0.26)
(0.25)
(0.30)
(0.34)
(0.34)
Net
asset
value,
end
of
year
.......................
$9.91
$10.95
$11.17
$11.39
$10.84
Total
return
....................................
(7.14)%
0.18%
0.74%
8.36%
2.86%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.68%
0.66%
0.67%
0.66%
0.67%
Expenses
net
of
waiver
and
payments
by
affiliates
d
......
0.65%
0.66%
0.67%
0.66%
0.67%
Net
investment
income
...........................
2.59%
2.16%
2.74%
2.95%
3.16%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$18,309
$19,796
$15,036
$11,709
$8,335
Portfolio
turnover
rate
............................
19.06
%
20.50%
24.03%
4.87%
8.57%
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
Schedule
of
Investments,
February
28,
2023
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
Corporate
Bonds
0.3%
Software
0.3%
a
Haven
at
Elgin
LLC
,
5.25
%
,
12/31/53
....................................
$
500,000
$
491,162
Total
Corporate
Bonds
(Cost
$500,000)
........................................
491,162
Municipal
Bonds
96.4%
Alabama
88.7%
Alabama
Community
College
System
,
Bishop
State
Community
College
,
Revenue
,
2019
,
BAM
Insured
,
4
%
,
1/01/49
......................................
2,000,000
1,818,550
Alabama
Special
Care
Facilities
Financing
Authority-Birmingham
,
Ascension
Health
Credit
Group
,
Revenue
,
2016
B
,
Refunding
,
5
%
,
11/15/46
...................
3,000,000
3,037,490
Alabama
State
University
,
Revenue,
2022,
Refunding,
BAM
Insured,
5%,
9/01/36
......................
1,500,000
1,638,580
Revenue,
2022,
Refunding,
BAM
Insured,
5%,
9/01/40
......................
1,500,000
1,607,098
Alabaster
Board
of
Education
,
Special
Tax,
2022,
BAM
Insured,
5%,
9/01/47
.............................
1,500,000
1,597,126
Special
Tax,
2022,
BAM
Insured,
5%,
9/01/52
.............................
1,500,000
1,587,881
Alexander
City
Board
of
Education
,
Special
Tax
,
2022
,
BAM
Insured
,
4
%
,
2/01/52
...
3,000,000
2,720,948
Auburn
University
,
Revenue
,
2015
A
,
Refunding
,
5
%
,
6/01/33
..................
2,500,000
2,577,895
Bessemer
Governmental
Utility
Services
Corp.
,
Water
,
Revenue
,
2017
,
Refunding
,
BAM
Insured
,
5
%
,
6/01/39
...........................................
6,000,000
6,335,403
Birmingham
Airport
Authority
,
Revenue,
2020,
Refunding,
BAM
Insured,
5%,
7/01/32
......................
300,000
337,286
Revenue,
2020,
Refunding,
BAM
Insured,
5%,
7/01/33
......................
325,000
364,684
Revenue,
2020,
Refunding,
BAM
Insured,
5%,
7/01/34
......................
400,000
446,635
Revenue,
2020,
Refunding,
BAM
Insured,
4%,
7/01/35
......................
350,000
354,890
Revenue,
2020,
Refunding,
BAM
Insured,
4%,
7/01/36
......................
500,000
501,167
Revenue,
2020,
Refunding,
BAM
Insured,
4%,
7/01/37
......................
545,000
543,215
Revenue,
2020,
Refunding,
BAM
Insured,
4%,
7/01/38
......................
400,000
395,885
Revenue,
2020,
Refunding,
BAM
Insured,
4%,
7/01/39
......................
2,540,000
2,493,913
Revenue,
2020,
Refunding,
BAM
Insured,
4%,
7/01/40
......................
705,000
685,585
Birmingham-Jefferson
Civic
Center
Authority
,
Special
Tax
,
2018
A
,
5
%
,
7/01/33
.....
1,605,000
1,727,317
b
Black
Belt
Energy
Gas
District
,
Revenue,
2021
A,
Refunding,
Mandatory
Put,
4%,
12/01/31
..................
3,000,000
2,975,626
Revenue,
2022
A,
Mandatory
Put,
4%,
12/01/29
...........................
1,000,000
972,600
Revenue,
2022
C-1,
Mandatory
Put,
5.25%,
6/01/29
........................
1,000,000
1,055,832
Calhoun
County
Board
of
Education
,
Special
Tax
,
2016
,
Pre-Refunded
,
BAM
Insured
,
5
%
,
2/01/46
......................................................
3,000,000
3,169,554
City
of
Bessemer
,
Water
,
Revenue
,
2017
,
Refunding
,
AGMC
Insured
,
5
%
,
1/01/47
...
2,590,000
2,676,592
City
of
Birmingham
,
GO
,
2021
A
,
4
%
,
6/01/50
..............................
2,500,000
2,298,619
City
of
Boaz
,
Water
&
Sewer,
Revenue,
2021,
AGMC
Insured,
4%,
9/01/46
.................
1,000,000
928,093
Water
&
Sewer,
Revenue,
2021,
AGMC
Insured,
4%,
9/01/50
.................
1,500,000
1,359,996
City
of
Decatur
,
Water
&
Sewer
,
Revenue
,
2021
A
,
4
%
,
8/15/50
.................
3,000,000
2,729,772
City
of
Huntsville
,
GO
,
2018
B
,
5
%
,
5/01/38
................................
4,775,000
5,090,989
City
of
Lincoln
,
GO
,
2020
,
BAM
Insured
,
4
%
,
6/01/50
........................
2,500,000
2,522,371
City
of
Madison
,
GO
,
2015
A
,
Pre-Refunded
,
5
%
,
4/01/37
.....................
2,590,000
2,691,620
City
of
Trussville
,
GO
,
2018
A
,
4
%
,
8/01/41
................................
3,000,000
2,932,080
City
of
Tuscaloosa
,
GO
,
2020
A
,
4
%
,
10/01/50
..............................
4,580,000
4,277,390
County
of
Mobile
,
GO,
2020
A,
Refunding,
4%,
8/01/38
...................................
1,000,000
1,004,399
c
Revenue,
144A,
2020,
4%,
11/01/45
...................................
2,400,000
2,082,476
DCH
Healthcare
Authority
,
Revenue,
2015,
Refunding,
5%,
6/01/36
.................................
2,000,000
2,040,130
Revenue,
2021
A,
4%,
6/01/46
........................................
2,310,000
2,087,576
East
Alabama
Health
Care
Authority
(The)
,
Revenue,
2018
A,
4%,
9/01/30
........................................
1,000,000
1,005,833
Franklin
Tax-Free
Trust
Schedule
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)
East
Alabama
Health
Care
Authority
(The),
(continued)
Revenue,
2018
A,
5%,
9/01/41
........................................
$
3,000,000
$
3,061,451
Florence
City
Board
of
Education
,
Special
Tax
,
2022
,
4
%
,
3/01/46
...............
3,000,000
2,772,359
Florence
Public
Building
Authority
,
City
of
Florence
,
Revenue
,
2021
,
4
%
,
9/01/35
....
500,000
503,792
d
Health
Care
Authority
for
Baptist
Health
(The)
,
Revenue,
2023
A,
Refunding,
5%,
11/15/36
..............................
1,000,000
1,072,800
Revenue,
2023
A,
Refunding,
5%,
11/15/37
..............................
875,000
931,295
Health
Care
Authority
of
the
City
of
Huntsville
(The)
,
Health
Care
Authority
of
City
of
Huntsville
(The)
Obligated
Group
,
Revenue
,
2020
B
,
4
%
,
6/01/45
..............
10,000,000
9,170,054
Homewood
Educational
Building
Authority
,
Samford
University,
Revenue,
2019
A,
Refunding,
4%,
12/01/49
...............
2,500,000
2,170,749
Samford
University,
Revenue,
2021
A,
4%,
12/01/51
.......................
1,470,000
1,262,805
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
3,031,668
Infirmary
Health
System
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
2/01/46
3,000,000
2,618,342
Jacksonville
State
University
,
Revenue,
2017,
Refunding,
AGMC
Insured,
5%,
12/01/36
...................
5,000,000
5,378,534
Revenue,
2020,
Refunding,
4%,
12/01/50
................................
5,000,000
4,444,101
Limestone
County
Water
&
Sewer
Authority
,
Revenue
,
2015
B
,
Pre-Refunded
,
BAM
Insured
,
5
%
,
12/01/43
..............................................
5,920,000
6,021,220
b
Lower
Alabama
Gas
District
(The)
,
Revenue
,
2020
,
Mandatory
Put
,
4
%
,
12/01/25
...
2,000,000
1,998,018
Madison
City
Board
of
Education
,
Special
Tax
,
2019
,
4
%
,
2/01/44
...............
3,000,000
2,805,399
Madison
Water
&
Wastewater
Board
,
Revenue
,
2017
,
Refunding
,
5
%
,
12/01/41
.....
4,610,000
4,819,745
Marshall
County
Board
of
Education
,
Special
Tax
,
2016
,
AGMC
Insured
,
4
%
,
3/01/41
1,000,000
956,960
Mobile
County
Board
of
School
Commissioners
,
Special
Tax
,
2022
B
,
BAM
Insured
,
4.25
%
,
3/01/52
...................................................
2,000,000
1,911,968
Opelika
Utilities
Board
,
Revenue
,
2017
,
Refunding
,
4
%
,
6/01/41
................
2,000,000
1,927,692
Oxford
City
Board
of
Education
,
Special
Tax
,
2020
A
,
Refunding
,
4
%
,
5/01/50
......
2,500,000
2,275,606
b
Southeast
Energy
Authority
A
Cooperative
District
,
Revenue,
2021
A,
Mandatory
Put,
4%,
10/01/28
...........................
5,000,000
4,921,062
Revenue,
2022
A-1,
Mandatory
Put,
5.5%,
12/01/29
........................
2,000,000
2,144,660
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
3,778,104
Talladega
County
Board
of
Education
,
Special
Tax
,
2017
,
Refunding
,
BAM
Insured
,
5
%
,
11/01/39
........................................................
2,000,000
2,099,090
Troy
Public
Educational
Building
Authority
,
Troy
City
Board
of
Education
,
Revenue
,
2011
,
AGMC
Insured
,
5.25
%
,
12/01/40
..................................
295,000
295,330
Tuscaloosa
City
Board
of
Education
,
Revenue
,
2016
,
Pre-Refunded
,
5
%
,
8/01/41
...
4,000,000
4,256,752
UAB
Medicine
Finance
Authority
,
UAB
Medicine
Obligated
Group
,
Revenue
,
2016
B
,
Refunding
,
5
%
,
9/01/29
.............................................
5,000,000
5,327,689
University
of
Alabama
(The)
,
Revenue,
2013
D-2,
Pre-Refunded,
5%,
10/01/37
.........................
2,000,000
2,019,404
Revenue,
2018
B2,
5%,
9/01/48
.......................................
5,000,000
5,323,930
University
of
Montevallo
,
Revenue
,
2017
,
Refunding
,
BAM
Insured
,
5
%
,
5/01/42
....
2,500,000
2,649,095
University
of
South
Alabama
,
Revenue
,
2019
A
,
BAM
Insured
,
5
%
,
4/01/49
........
2,000,000
2,065,323
Water
Works
Board
of
the
City
of
Birmingham
(The)
,
Revenue
,
2016
B
,
Pre-Refunded
,
5
%
,
1/01/43
......................................................
5,000,000
5,401,352
174,089,445
California
0.3%
California
Municipal
Finance
Authority
,
Revenue
,
2022
A-1
,
4.25
%
,
12/01/37
.......
700,000
582,972
Franklin
Tax-Free
Trust
Schedule
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)
Florida
0.6%
c
Capital
Trust
Agency,
Inc.
,
SHI
-
Lake
Osborne
LLC
,
Revenue
,
144A,
2021
A-1
,
3.68
%
,
1/01/57
.........................................................
$
500,000
$
337,067
c
Leon
County
Housing
Finance
Authority
,
Revenue
,
144A,
2022
A
,
Zero
Cpn.,
5/01/57
1,150,000
934,375
1,271,442
Illinois
0.4%
Metropolitan
Pier
&
Exposition
Authority
,
Revenue
,
2022
A
,
Refunding
,
4
%
,
12/15/42
.
1,000,000
861,638
Kentucky
0.5%
c
Louisville/Jefferson
County
Metropolitan
Government
,
PSG
Vesta
Derby
Oaks
LLC
,
Revenue
,
144A,
Zero
Cpn.,
5/01/52
....................................
1,500,000
981,013
New
York
1.4%
Metropolitan
Transportation
Authority
,
Revenue,
2021
A-1,
4%,
11/15/46
.....................................
275,000
239,069
Revenue,
2021
A-2,
4%,
11/15/42
.....................................
2,700,000
2,411,615
2,650,684
South
Carolina
1.2%
South
Carolina
Jobs-Economic
Development
Authority
,
c
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
500,000
400,305
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
500,000
399,078
c
Columbia
Portfolio
Obligated
Group,
Revenue,
144A,
2022
A-1,
Zero
Cpn.,
6/01/37
1,485,000
973,521
c
South
Carolina
State
Housing
Finance
&
Development
Authority
,
Garden
Oaks
LP
,
Revenue
,
144A,
2021
A
,
4.2
%
,
12/01/39
................................
750,000
572,924
2,345,828
Texas
0.5%
c
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
600,000
445,043
c
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
A-2
,
5
%
,
12/01/52
............
800,000
585,277
1,030,320
Washington
0.2%
c
Washington
State
Housing
Finance
Commission
,
Madison
at
Rivers
Edge
Apartments
LLC
,
Revenue
,
144A,
2021
A
,
3.65
%
,
1/01/37
............................
500,000
400,322
Wisconsin
0.9%
c
Public
Finance
Authority
,
Revenue,
144A,
2022,
B-1,
4%,
12/28/44
................................
500,000
396,177
Gulf
Coast
Portfolio
Obligated
Group,
Revenue,
144A,
2021,
5.25%,
12/01/23
....
1,300,000
1,300,000
1,696,177
U.S.
Territories
1.7%
Guam
0.5%
Guam
Government
Waterworks
Authority
,
Revenue
,
2020
A
,
5
%
,
1/01/50
.........
1,000,000
1,003,796
Puerto
Rico
1.2%
Puerto
Rico
Electric
Power
Authority
,
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/32
....................
500,000
501,297
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/34
....................
1,000,000
1,002,976
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue,
2022
A,
5%,
7/01/62
........................................
49,844
46,230
Revenue,
2022
B,
Zero
Cpn.,
7/01/32
...................................
32,392
20,245
Revenue,
2022
C,
Zero
Cpn.,
7/01/53
..................................
55,410
30,762
Franklin
Tax-Free
Trust
Schedule
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
148
.
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
U.S.
Territories
(continued)
Puerto
Rico
(continued)
Puerto
Rico
Sales
Tax
Financing
Corp.
,
Sales
Tax
,
Revenue
,
A-1
,
5
%
,
7/01/58
.....
$
750,000
$
695,850
2,297,360
Total
U.S.
Territories
....................................................................
3,301,156
Total
Municipal
Bonds
(Cost
$204,547,842)
.....................................
189,210,997
Total
Long
Term
Investments
(Cost
$205,047,842)
...............................
189,702,159
a
a
a
a
a
a
Total
Investments
(Cost
$205,047,842)
96.7%
...................................
$189,702,159
Other
Assets,
less
Liabilities
3.3%
.............................................
6,544,352
Net
Assets
100.0%
...........................................................
$196,246,511
a
Fair
valued
using
significant
unobservable
inputs.
See
Note
12
regarding
fair
value
measurements.
b
The
maturity
date
shown
represents
the
mandatory
put
date.
c
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,
2023,
the
aggregate
value
of
these
securities
was
$9,408,500,
representing
4.8%
of
net
assets.
d
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
2023
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.57
$11.91
$12.19
$11.59
$11.57
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.28
0.26
0.30
0.32
0.17
Net
realized
and
unrealized
gains
(losses)
...........
(1.17)
(0.34)
(0.29)
0.63
0.02
Total
from
investment
operations
....................
(0.89)
(0.08)
0.01
0.95
0.19
Less
distributions
from:
Net
investment
income
..........................
(0.28)
(0.26)
(0.29)
(0.35)
(0.17)
Net
asset
value,
end
of
year
.......................
$10.40
$11.57
$11.91
$12.19
$11.59
Total
return
e
...................................
(7.71)%
(0.71)%
0.14%
8.27%
1.70%
Ratios
to
average
net
assets
f
Expenses
g
....................................
0.88%
0.86%
0.85%
0.86%
0.87%
Net
investment
income
...........................
2.65%
2.20%
2.48%
2.76%
3.10%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$76,312
$92,129
$77,256
$54,945
$19,705
Portfolio
turnover
rate
............................
15.85%
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,
2023
2022
2021
2020
a
2019
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.57
$11.91
$12.19
$11.59
$11.65
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.30
0.28
0.32
0.35
0.38
Net
realized
and
unrealized
gains
(losses)
...........
(1.18)
(0.34)
(0.29)
0.61
(0.06)
Total
from
investment
operations
....................
(0.88)
(0.06)
0.03
0.96
0.32
Less
distributions
from:
Net
investment
income
..........................
(0.29)
(0.28)
(0.31)
(0.36)
(0.38)
Net
asset
value,
end
of
year
.......................
$10.40
$11.57
$11.91
$12.19
$11.59
Total
return
d
...................................
(7.57)%
(0.56)%
0.29%
8.44%
2.83%
Ratios
to
average
net
assets
Expenses
e
....................................
0.73%
0.71%
0.71%
0.71%
0.72%
Net
investment
income
...........................
2.79%
2.36%
2.66%
2.91%
3.25%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$189,496
$249,763
$274,232
$309,436
$313,940
Portfolio
turnover
rate
............................
15.85%
22.60%
16.89%
13.23%
11.78%
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%.
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,
2023
2022
2021
2020
a
2019
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.75
$12.09
$12.38
$11.77
$11.83
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.24
0.22
0.25
0.29
0.32
Net
realized
and
unrealized
gains
(losses)
...........
(1.20)
(0.35)
(0.29)
0.62
(0.06)
Total
from
investment
operations
....................
(0.96)
(0.13)
(0.04)
0.91
0.26
Less
distributions
from:
Net
investment
income
..........................
(0.23)
(0.21)
(0.25)
(0.30)
(0.32)
Net
asset
value,
end
of
year
.......................
$10.56
$11.75
$12.09
$12.38
$11.77
Total
return
d
...................................
(8.14)%
(1.10)%
(0.34)%
7.84%
2.22%
Ratios
to
average
net
assets
Expenses
e
....................................
1.27%
1.25%
1.25%
1.26%
1.27%
Net
investment
income
...........................
2.19%
1.79%
2.08%
2.36%
2.70%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$19,610
$28,904
$45,512
$62,426
$72,542
Portfolio
turnover
rate
............................
15.85%
22.60%
16.89%
13.23%
11.78%
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%.
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,
2023
2022
2021
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.57
$11.91
$12.20
$11.59
$11.66
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.31
0.30
0.33
0.36
0.39
Net
realized
and
unrealized
gains
(losses)
...........
(1.17)
(0.34)
(0.29)
0.63
(0.06)
Total
from
investment
operations
....................
(0.86)
(0.04)
0.04
0.99
0.33
Less
distributions
from:
Net
investment
income
..........................
(0.31)
(0.30)
(0.33)
(0.38)
(0.40)
Net
asset
value,
end
of
year
.......................
$10.40
$11.57
$11.91
$12.20
$11.59
Total
return
....................................
(7.44)%
(0.42)%
0.35%
8.67%
2.86%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.59%
0.57%
0.58%
0.59%
0.59%
Expenses
net
of
waiver
and
payments
by
affiliates
d
......
0.59%
e
0.57%
e
0.56%
0.57%
0.57%
Net
investment
income
...........................
2.92%
2.49%
2.73%
3.05%
3.40%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$10,366
$17,047
$13,813
$4,981
$3,786
Portfolio
turnover
rate
............................
15.85%
22.60%
16.89%
13.23%
11.78%
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
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
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,
2023
2022
2021
2020
a
2019
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.57
$11.92
$12.20
$11.59
$11.66
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.31
0.29
0.33
0.36
0.39
Net
realized
and
unrealized
gains
(losses)
...........
(1.18)
(0.35)
(0.29)
0.63
(0.07)
Total
from
investment
operations
....................
(0.87)
(0.06)
0.04
0.99
0.32
Less
distributions
from:
Net
investment
income
..........................
(0.30)
(0.29)
(0.32)
(0.38)
(0.39)
Net
asset
value,
end
of
year
.......................
$10.40
$11.57
$11.92
$12.20
$11.59
Total
return
....................................
(7.48)%
(0.46)%
0.31%
8.63%
2.83%
Ratios
to
average
net
assets
Expenses
d
....................................
0.63%
0.61%
0.61%
0.61%
0.62%
Net
investment
income
...........................
2.88%
2.46%
2.74%
3.01%
3.35%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$48,473
$72,069
$68,009
$53,789
$40,142
Portfolio
turnover
rate
............................
15.85%
22.60%
16.89%
13.23%
11.78%
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
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Tax-Free
Trust
Schedule
of
Investments,
February
28,
2023
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
Corporate
Bonds
0.2%
Software
0.2%
a
Haven
at
Elgin
LLC
,
5.25
%
,
12/31/53
....................................
$
900,000
$
884,092
Total
Corporate
Bonds
(Cost
$900,000)
........................................
884,092
Municipal
Bonds
98.4%
California
0.3%
California
Municipal
Finance
Authority
,
Revenue
,
2022
A-1
,
4.25
%
,
12/01/37
.......
1,300,000
1,082,662
Florida
1.3%
Capital
Trust
Agency,
Inc.
,
Kingdom
Development
West
Palm
Beach
Portfolio
Obligated
Group,
Revenue,
2021
A-1,
3.75%,
12/01/36
.............................................
2,592,000
2,158,287
b
SHI
-
Lake
Osborne
LLC,
Revenue,
144A,
2021
A-1,
3.68%,
1/01/57
...........
750,000
505,601
b
Leon
County
Housing
Finance
Authority
,
Revenue
,
144A,
2022
A
,
Zero
Cpn.,
5/01/57
2,030,000
1,649,375
4,313,263
Georgia
89.1%
Athens
Housing
Authority
,
UGAREF
East
Campus
Housing
Phase
II
LLC
,
Revenue
,
2017
,
Refunding
,
4
%
,
6/15/40
........................................
5,000,000
4,868,509
Atlanta
Development
Authority
(The)
,
City
of
Atlanta
Hotel
Motel
Tax,
Revenue,
2015
A-1,
5.25%,
7/01/40
............
7,750,000
7,983,052
City
of
Atlanta
Hotel
Motel
Tax,
Revenue,
2015
A-1,
5.25%,
7/01/44
............
3,000,000
3,079,750
Tuff
Yamacraw
LLC,
Revenue,
2005
A,
Refunding,
AMBAC
Insured,
5%,
1/01/26
..
2,555,000
2,614,138
Auburn
Urban
Redevelopment
Agency
,
City
of
Auburn,
Revenue,
2020,
BAM
Insured,
4%,
10/01/45
..................
1,000,000
934,854
City
of
Auburn,
Revenue,
2020,
BAM
Insured,
4%,
10/01/50
..................
1,000,000
917,912
Bainbridge
Public
Facilities
Authority
,
County
of
Decatur
,
Revenue
,
2018
,
AGMC
Insured
,
4
%
,
3/01/43
...............................................
4,000,000
3,827,841
Bleckley
County
School
District
,
GO
,
2020
,
5
%
,
10/01/42
.....................
2,055,000
2,230,283
Brookhaven
Development
Authority
,
Children's
Healthcare
of
Atlanta
Obligated
Group
,
Revenue
,
2019
A
,
4
%
,
7/01/49
........................................
3,000,000
2,779,878
Carroll
City-County
Hospital
Authority
,
Tanner
Medical
Center
Obligated
Group,
Revenue,
2015,
5%,
7/01/41
..........
2,000,000
2,032,957
Tanner
Medical
Center
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
7/01/50
.
2,950,000
2,698,961
City
of
Atlanta
,
GO,
2022
A-1,
5%,
12/01/38
.........................................
5,000,000
5,685,175
Airport
Passenger
Facility
Charge,
Revenue,
Sub.
Lien,
2014
A,
Refunding,
5%,
1/01/34
........................................................
3,250,000
3,297,343
Airport
Passenger
Facility
Charge,
Revenue,
Sub.
Lien,
2019
D,
4%,
7/01/36
.....
4,500,000
4,453,934
BeltLineTAD,
Tax
Allocation,
2016
B,
Refunding,
5%,
1/01/31
.................
1,780,000
1,893,351
Department
of
Aviation,
Revenue,
2021
C,
Refunding,
5%,
7/01/37
.............
1,500,000
1,599,838
Water
&
Wastewater,
Revenue,
2001
A,
AGMC,
NATL
RE
Insured,
5.5%,
11/01/27
.
5,000,000
5,316,315
Water
&
Wastewater,
Revenue,
2018
B,
Refunding,
5%,
11/01/47
..............
5,000,000
5,230,603
City
of
Baldwin
,
Water
&
Sewerage
,
Revenue
,
2021
,
Refunding
,
BAM
Insured
,
3
%
,
6/01/46
.........................................................
1,835,000
1,457,380
City
of
Buford
,
GO
,
2017
C
,
Pre-Refunded
,
4
%
,
1/01/43
......................
5,000,000
5,204,239
City
of
Cartersville
,
Water
&
Sewer
,
Revenue
,
2018
,
Refunding
,
5
%
,
6/01/48
.......
4,000,000
4,203,402
City
of
Dalton
,
GO
,
2018
,
5
%
,
2/01/48
....................................
3,000,000
3,143,825
City
of
Monroe
,
Combined
Utility
,
Revenue
,
2020
,
AGMC
Insured
,
4
%
,
12/01/50
....
1,500,000
1,376,551
City
of
Warner
Robins
,
Water
&
Sewerage
,
Revenue
,
2020
,
Refunding
,
4
%
,
7/01/45
.
1,000,000
950,576
Clayton
County
Development
Authority
,
USG
Real
Estate
Foundation
XIII
LLC,
Revenue,
2022
A,
5%,
6/15/32
..........
1,295,000
1,512,555
USG
Real
Estate
Foundation
XIII
LLC,
Revenue,
2022
A,
5%,
6/15/33
..........
1,210,000
1,426,258
Cobb
County
Kennestone
Hospital
Authority
,
WellStar
Health
System
Obligated
Group,
Revenue,
2020
B,
Refunding,
5%,
4/01/38
375,000
394,356
WellStar
Health
System
Obligated
Group,
Revenue,
2020
B,
Refunding,
4%,
4/01/39
425,000
412,521
WellStar
Health
System
Obligated
Group,
Revenue,
2020
B,
Refunding,
5%,
4/01/40
400,000
417,286
Franklin
Tax-Free
Trust
Schedule
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)
Cobb
County
Kennestone
Hospital
Authority,
(continued)
WellStar
Health
System
Obligated
Group,
Revenue,
2020
B,
Refunding,
4%,
4/01/41
$
375,000
$
356,093
WellStar
Health
System
Obligated
Group,
Revenue,
2022
A,
4%,
4/01/52
........
3,100,000
2,742,534
County
of
DeKalb
,
Water
&
Sewerage
,
Revenue
,
2006
B
,
Refunding
,
AGMC
Insured
,
5
%
,
10/01/35
.....................................................
4,000,000
4,253,252
County
of
Fulton
,
Water
&
Sewerage
,
Revenue
,
2020
A
,
3
%
,
1/01/45
.............
5,000,000
3,852,980
County
of
Rockdale
,
Stormwater
System
,
Revenue
,
2021
,
4
%
,
7/01/41
...........
500,000
487,454
Coweta
County
Water
&
Sewage
Authority
,
Revenue,
2021
B,
3%,
6/01/43
........................................
820,000
655,925
Revenue,
2021
B,
3%,
6/01/46
........................................
1,000,000
772,856
Dalton
Whitfield
County
Joint
Development
Authority
,
Hamilton
Health
Care
System
Obligated
Group
,
Revenue
,
2017
,
4
%
,
8/15/41
............................
3,000,000
2,935,800
DeKalb
Newton
&
Gwinnett
Counties
Joint
Development
Authority
,
GGCF
Athletic
Fields
LLC
,
Revenue
,
2012
A
,
AGMC
Insured
,
5
%
,
7/01/39
..................
2,500,000
2,503,083
Development
Authority
for
Fulton
County
,
Georgia
Tech
Facilities,
Inc.,
Revenue,
2018,
4%,
3/01/43
...................
2,000,000
1,926,901
Piedmont
Healthcare,
Inc.
Obligated
Group,
Revenue,
2014
A,
Refunding,
5%,
7/01/44
........................................................
4,160,000
4,191,093
Piedmont
Healthcare,
Inc.
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
7/01/46
........................................................
5,840,000
5,924,730
Piedmont
Healthcare,
Inc.
Obligated
Group,
Revenue,
2019
A,
4%,
7/01/49
......
5,000,000
4,466,154
Tuff/Atlanta
Housing
LLC,
Revenue,
2022,
Refunding,
5%,
9/01/29
.............
1,000,000
1,114,053
Tuff/Atlanta
Housing
LLC,
Revenue,
2022,
Refunding,
5%,
9/01/30
.............
1,030,000
1,165,876
Tuff/Atlanta
Housing
LLC,
Revenue,
2022,
Refunding,
5%,
9/01/31
.............
1,235,000
1,414,382
Tuff/Atlanta
Housing
LLC,
Revenue,
2022,
Refunding,
5%,
9/01/32
.............
1,350,000
1,560,327
WellStar
Health
System
Obligated
Group,
Revenue,
2017,
5%,
4/01/47
.........
1,000,000
1,018,510
WellStar
Health
System
Obligated
Group,
Revenue,
2020
A,
4%,
4/01/50
........
4,000,000
3,581,043
Development
Authority
of
Burke
County
(The)
,
Oglethorpe
Power
Corp.
,
Revenue
,
2017
,
Refunding
,
4.125
%
,
11/01/45
....................................
6,000,000
5,323,997
Development
Authority
of
Cobb
County
(The)
,
Georgia
Tech
Cobb
Research
Campus
LLC,
Revenue,
2017
A,
4%,
6/01/42
......
1,600,000
1,547,914
Kennesaw
State
University
Real
Estate
Obligated
Group
2015
ABC,
Revenue,
Senior
Lien,
2015
A,
Refunding,
5%,
7/15/38
.................................
2,000,000
2,054,233
KSU
2020
Housing
Real
Estate
Foundation
LLC,
Revenue,
2020,
4%,
7/15/52
....
5,720,000
5,203,872
KSU
University
II
Real
Estate
Foundation
LLC,
Revenue,
2021,
Refunding,
4%,
7/15/34
........................................................
1,000,000
1,018,722
University
System
of
Georgia,
Revenue,
2020
C,
4%,
7/15/52
................
2,000,000
1,858,148
Development
Authority
of
Gwinnett
County
,
Gwinnett
County
School
District
,
COP
,
2006
,
NATL
Insured
,
5.25
%
,
1/01/24
...................................
2,000,000
2,034,953
b
Development
Authority
of
Rockdale
County
,
AHPC
Terraces
at
Fieldstone
LLC
,
Revenue
,
144A,
2021
A-1
,
3.5
%
,
12/01/36
...............................
4,825,000
3,870,146
Etowah
Water
&
Sewer
Authority
,
Revenue
,
2019
,
Refunding
,
BAM
Insured
,
3
%
,
3/01/44
.........................................................
1,250,000
967,413
Floyd
County
Hospital
Authority
,
Floyd
Obligated
Group
,
Revenue
,
2016
,
Pre-
Refunded
,
4
%
,
7/01/43
.............................................
6,735,000
6,975,975
Forsyth
County
School
District
,
GO
,
2018
,
5
%
,
2/01/38
.......................
2,650,000
2,865,158
Fulton
County
Residential
Care
Facilities
for
the
Elderly
Authority
,
Lenbrook
Square
Foundation
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
5
%
,
7/01/42
..........
6,000,000
5,651,999
Gainesville
&
Hall
County
Hospital
Authority
,
Northeast
Georgia
Health
System
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
2/15/42
....................................................
7,000,000
7,202,138
Northeast
Georgia
Health
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
2/15/45
....................................................
5,000,000
4,622,075
Northeast
Georgia
Health
System
Obligated
Group,
Revenue,
2021
A,
4%,
2/15/51
5,000,000
4,415,337
Franklin
Tax-Free
Trust
Schedule
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)
Gainesville
School
District
,
GO
,
2020
,
4
%
,
11/01/42
.........................
$
1,000,000
$
986,690
Georgia
Higher
Education
Facilities
Authority
,
USG
Real
Estate
Foundation
III
LLC
,
Revenue
,
2020
,
Refunding
,
4
%
,
6/15/41
.................................
2,305,000
2,172,437
Georgia
Housing
&
Finance
Authority
,
Revenue,
2013
A,
3.8%,
12/01/37
.....................................
1,655,000
1,630,704
Revenue,
2018
A,
3.85%,
12/01/38
....................................
1,170,000
1,152,958
Revenue,
2018
A,
3.95%,
12/01/43
....................................
1,210,000
1,186,345
Revenue,
2019
A,
Refunding,
3.7%,
6/01/49
..............................
4,605,000
3,950,719
Georgia
Ports
Authority
,
Revenue,
2021,
4%,
7/01/51
.........................................
4,395,000
4,131,454
Revenue,
2022,
5%,
7/01/47
.........................................
2,500,000
2,723,972
Revenue,
2022,
5.25%,
7/01/52
.......................................
2,000,000
2,197,225
Glynn-Brunswick
Memorial
Hospital
Authority
,
Southeast
Georgia
Health
System
Obligated
Group
,
Revenue
,
2017
,
5
%
,
8/01/47
............................
5,000,000
5,014,025
Gwinnett
County
School
District
,
GO
,
2019
,
5
%
,
2/01/41
......................
3,000,000
3,252,224
Henry
County
School
District
,
GO
,
2016
,
Pre-Refunded
,
4
%
,
8/01/33
.............
5,000,000
5,176,334
Hogansville
Ga
Combined
Public
Utility
System
,
Revenue
,
1993
,
AGMC
Insured
,
ETM,
6
%
,
10/01/23
.....................................................
505,000
512,982
Main
Street
Natural
Gas,
Inc.
,
Revenue,
2007
A,
5.5%,
9/15/27
......................................
5,000,000
5,253,355
Revenue,
2019
A,
5%,
5/15/38
........................................
2,500,000
2,545,060
c
Revenue,
2022
B,
Mandatory
Put,
5%,
6/01/29
............................
5,000,000
5,196,859
b,c
Revenue,
144A,
2022
C,
Mandatory
Put,
4%,
11/01/27
......................
8,000,000
7,608,375
c
Revenue,
2023
B,
Mandatory
Put,
5%,
3/01/30
............................
2,000,000
2,114,913
Metropolitan
Atlanta
Rapid
Transit
Authority
,
Revenue
,
2015
B
,
5
%
,
7/01/45
........
5,000,000
5,189,315
Monroe
County
Public
Facilities
Authority
,
County
of
Monroe
,
Revenue
,
2020
,
4
%
,
6/01/42
.........................................................
1,000,000
942,212
Moultrie-Colquitt
Counties
Development
Authority
,
Philadelphia
College
of
Osteopathic
Medicine
Obligated
Group
,
Revenue
,
2018
,
5
%
,
12/01/43
...................
4,815,000
5,166,112
Municipal
Electric
Authority
of
Georgia
,
Revenue,
2019
A,
AGMC
Insured,
4%,
1/01/44
............................
5,000,000
4,602,245
Revenue,
2020
A,
Refunding,
5%,
1/01/50
...............................
3,500,000
3,566,402
Revenue,
2021
A,
Refunding,
4%,
1/01/46
...............................
330,000
274,257
Revenue,
2021
A,
Refunding,
4%,
1/01/51
...............................
425,000
342,953
Revenue,
2021
A,
Refunding,
5%,
1/01/56
...............................
750,000
717,493
Revenue,
2023
A,
5.5%,
7/01/64
......................................
2,000,000
2,028,833
Private
Colleges
&
Universities
Authority
,
Emory
University,
Revenue,
2013
A,
5%,
10/01/43
.........................
5,000,000
5,019,556
Emory
University,
Revenue,
2019
B,
Refunding,
5%,
9/01/48
.................
4,000,000
4,281,856
Mercer
University,
Revenue,
2021,
Refunding,
4%,
10/01/50
.................
5,400,000
4,801,077
Mercer
University,
Revenue,
2022,
Refunding,
5.25%,
10/01/51
...............
4,500,000
4,738,372
Pulaski
County
School
District
,
GO
,
2020
,
4
%
,
10/01/42
......................
1,000,000
986,744
Richmond
County
Hospital
Authority
,
University
Health
Services
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
4
%
,
1/01/35
.................................
8,000,000
8,089,243
Savannah
Hospital
Authority
,
St.
Joseph's/Candler
Health
System
Obligated
Group
,
Revenue
,
2019
A
,
Refunding
,
4
%
,
7/01/43
...............................
10,000,000
9,448,064
Sinclair
Water
Authority
,
Revenue
,
2019
,
Refunding
,
AGMC
Insured
,
5
%
,
4/01/48
...
2,000,000
2,116,104
Worth
County
School
District
,
GO
,
2017
,
5
%
,
12/01/42
.......................
5,000,000
5,253,246
306,849,484
Illinois
0.9%
State
of
Illinois
,
GO,
2021
A,
5%,
3/01/32
............................................
250,000
266,083
GO,
2021
B,
4%,
12/01/38
...........................................
3,000,000
2,788,170
3,054,253
Franklin
Tax-Free
Trust
Schedule
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)
New
Jersey
0.4%
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue
,
2018
A
,
Refunding
,
5
%
,
12/15/35
........................................................
$
1,200,000
$
1,271,688
New
York
0.8%
Metropolitan
Transportation
Authority
,
Revenue,
2020
A-1,
4%,
11/15/53
.....................................
100,000
83,229
Revenue,
2020
D,
4%,
11/15/47
.......................................
600,000
523,847
Revenue,
2021
A-2,
4%,
11/15/42
.....................................
2,300,000
2,054,338
2,661,414
South
Carolina
0.5%
South
Carolina
Jobs-Economic
Development
Authority
,
b
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
900,000
720,549
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
900,000
718,340
b
South
Carolina
State
Housing
Finance
&
Development
Authority
,
Garden
Oaks
LP
,
Revenue
,
144A,
2021
A
,
4.2
%
,
12/01/39
................................
500,000
381,949
1,820,838
Texas
0.6%
b
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
1,200,000
890,087
b
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
A-2
,
5
%
,
12/01/52
............
1,500,000
1,097,394
1,987,481
Washington
0.2%
b
Washington
State
Housing
Finance
Commission
,
Madison
at
Rivers
Edge
Apartments
LLC
,
Revenue
,
144A,
2021
A
,
3.65
%
,
1/01/37
............................
900,000
720,580
Wisconsin
1.2%
b
Public
Finance
Authority
,
Revenue,
144A,
2022,
B-1,
4%,
12/28/44
................................
900,000
713,119
AL-FL
Portfolio
Obligated
Group,
Revenue,
144A,
2021
A,
3.4%,
12/01/36
.......
1,500,000
1,201,341
Gulf
Coast
Portfolio
Obligated
Group,
Revenue,
144A,
2021,
5.25%,
12/01/23
....
2,300,000
2,300,000
4,214,460
U.S.
Territories
3.1%
Puerto
Rico
3.1%
HTA
HRRB
Custodial
Trust
,
Revenue
,
2007
CC
,
5.25
%
,
7/01/32
................
4,800,000
4,863,221
HTA
TRRB
Custodial
Trust
,
Revenue
,
2005
L
,
5.25
%
,
7/01/41
..................
1,100,000
1,112,084
Puerto
Rico
Electric
Power
Authority
,
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/32
....................
560,000
561,453
d
Revenue,
XX,
5.25%,
7/01/40
........................................
2,270,000
1,594,675
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue,
2022
A,
5%,
7/01/62
........................................
136,367
126,480
Revenue,
2022
B,
Zero
Cpn.,
7/01/32
...................................
88,620
55,388
Revenue,
2022
C,
Zero
Cpn.,
7/01/53
..................................
151,593
84,160
Puerto
Rico
Sales
Tax
Financing
Corp.
,
Sales
Tax
,
Revenue
,
A-1
,
5
%
,
7/01/58
.....
2,480,000
2,300,944
10,698,405
Total
U.S.
Territories
....................................................................
10,698,405
Total
Municipal
Bonds
(Cost
$366,963,907)
.....................................
338,674,528
Total
Long
Term
Investments
(Cost
$367,863,907)
...............................
339,558,620
a
a
a
a
a
Franklin
Tax-Free
Trust
Schedule
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
Short
Term
Investments
0.5%
a
a
Principal
Amount
a
Value
Municipal
Bonds
0.5%
Georgia
0.5%
e
Development
Authority
of
Monroe
County
(The)
,
Florida
Power
&
Light
Co.
,
Revenue
,
2002
,
Refunding
,
Daily
VRDN
and
Put
,
2.8
%
,
9/01/37
......................
$
1,800,000
$
1,800,000
Total
Municipal
Bonds
(Cost
$1,800,000)
.......................................
1,800,000
Total
Short
Term
Investments
(Cost
$1,800,000
)
.................................
1,800,000
a
Total
Investments
(Cost
$369,663,907)
99.1%
...................................
$341,358,620
Other
Assets,
less
Liabilities
0.9%
.............................................
2,897,852
Net
Assets
100.0%
...........................................................
$344,256,472
See
Abbreviations
on
page
148
.
a
Fair
valued
using
significant
unobservable
inputs.
See
Note
12
regarding
fair
value
measurements.
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,
2023,
the
aggregate
value
of
these
securities
was
$21,658,516,
representing
6.3%
of
net
assets.
c
The
maturity
date
shown
represents
the
mandatory
put
date.
d
See
Note
7
regarding
defaulted
securities.
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
franklintempleton.com
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
2023
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.03
$11.28
$11.55
$10.93
$10.85
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.25
0.24
0.28
0.30
0.16
Net
realized
and
unrealized
gains
(losses)
...........
(1.08)
(0.25)
(0.27)
0.64
0.08
Total
from
investment
operations
....................
(0.83)
(0.01)
0.01
0.94
0.24
Less
distributions
from:
Net
investment
income
..........................
(0.24)
(0.24)
(0.28)
(0.32)
(0.16)
Net
asset
value,
end
of
year
.......................
$9.96
$11.03
$11.28
$11.55
$10.93
Total
return
e
...................................
(7.49)%
(0.17)%
0.09%
8.68%
2.22%
Ratios
to
average
net
assets
f
Expenses
g
....................................
0.89%
0.87%
0.87%
0.86%
0.88%
Net
investment
income
...........................
2.42%
2.07%
2.49%
2.70%
3.06%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$60,153
$69,773
$56,810
$48,032
$18,110
Portfolio
turnover
rate
............................
11.69%
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,
2023
2022
2021
2020
a
2019
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.03
$11.28
$11.55
$10.92
$10.90
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.26
0.25
0.30
0.32
0.35
Net
realized
and
unrealized
gains
(losses)
...........
(1.08)
(0.25)
(0.28)
0.64
0.02
Total
from
investment
operations
....................
(0.82)
—
0.02
0.96
0.37
Less
distributions
from:
Net
investment
income
..........................
(0.26)
(0.25)
(0.29)
(0.33)
(0.35)
Net
asset
value,
end
of
year
.......................
$9.95
$11.03
$11.28
$11.55
$10.92
Total
return
d
...................................
(7.45)%
(0.02)%
0.24%
8.94%
3.45%
Ratios
to
average
net
assets
Expenses
e
....................................
0.74%
0.72%
0.72%
0.71%
0.73%
Net
investment
income
...........................
2.57%
2.22%
2.66%
2.85%
3.21%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$175,906
$234,499
$250,576
$289,744
$284,259
Portfolio
turnover
rate
............................
11.69%
16.61%
22.66%
4.83%
9.46%
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
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,
2023
2022
2021
2020
a
2019
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.21
$11.46
$11.74
$11.10
$11.07
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.20
0.19
0.24
0.26
0.29
Net
realized
and
unrealized
gains
(losses)
...........
(1.09)
(0.25)
(0.29)
0.65
0.03
Total
from
investment
operations
....................
(0.89)
(0.06)
(0.05)
0.91
0.32
Less
distributions
from:
Net
investment
income
..........................
(0.20)
(0.19)
(0.23)
(0.27)
(0.29)
Net
asset
value,
end
of
year
.......................
$10.12
$11.21
$11.46
$11.74
$11.10
Total
return
d
...................................
(7.92)%
(0.57)%
(0.39)%
8.34%
2.92%
Ratios
to
average
net
assets
Expenses
e
....................................
1.28%
1.26%
1.26%
1.26%
1.28%
Net
investment
income
...........................
1.97%
1.64%
2.08%
2.30%
2.66%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$12,724
$19,991
$29,441
$38,066
$42,188
Portfolio
turnover
rate
............................
11.69%
16.61%
22.66%
4.83%
9.46%
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
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,
2023
2022
2021
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.03
$11.28
$11.55
$10.93
$10.90
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.28
0.27
0.31
0.33
0.36
Net
realized
and
unrealized
gains
(losses)
...........
(1.08)
(0.25)
(0.27)
0.64
0.03
Total
from
investment
operations
....................
(0.80)
0.02
0.04
0.97
0.39
Less
distributions
from:
Net
investment
income
..........................
(0.27)
(0.27)
(0.31)
(0.35)
(0.36)
Net
asset
value,
end
of
year
.......................
$9.96
$11.03
$11.28
$11.55
$10.93
Total
return
....................................
(7.22)%
0.12%
0.38%
8.99%
3.67%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.61%
0.59%
0.60%
0.60%
0.61%
Expenses
net
of
waiver
and
payments
by
affiliates
d
......
0.60%
0.58%
0.58%
0.58%
0.59%
Net
investment
income
...........................
2.72%
2.36%
2.78%
2.98%
3.35%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$6,306
$8,031
$6,076
$5,383
$3,865
Portfolio
turnover
rate
............................
11.69%
16.61%
22.66%
4.83%
9.46%
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
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,
2023
2022
2021
2020
a
2019
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.03
$11.28
$11.55
$10.93
$10.90
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.27
0.26
0.31
0.33
0.36
Net
realized
and
unrealized
gains
(losses)
...........
(1.07)
(0.24)
(0.28)
0.63
0.03
Total
from
investment
operations
....................
(0.80)
0.02
0.03
0.96
0.39
Less
distributions
from:
Net
investment
income
..........................
(0.27)
(0.27)
(0.30)
(0.34)
(0.36)
Net
asset
value,
end
of
year
.......................
$9.96
$11.03
$11.28
$11.55
$10.93
Total
return
....................................
(7.26)%
0.08%
0.34%
8.95%
3.65%
Ratios
to
average
net
assets
Expenses
d
....................................
0.65%
0.62%
0.62%
0.61%
0.63%
Net
investment
income
...........................
2.67%
2.32%
2.73%
2.95%
3.31%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$36,351
$42,264
$37,329
$27,945
$19,580
Portfolio
turnover
rate
............................
11.69%
16.61%
22.66%
4.83%
9.46%
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
Schedule
of
Investments,
February
28,
2023
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
98.0%
Florida
0.1%
a
Capital
Trust
Agency,
Inc.
,
SHI
-
Lake
Osborne
LLC
,
Revenue
,
144A,
2021
A-1
,
3.68
%
,
1/01/57
.........................................................
$
500,000
$
337,067
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
982,576
Louisiana
92.7%
Ascension
Parish
School
Board
,
GO
,
2020
,
4
%
,
3/01/40
......................
1,000,000
968,075
Caddo
Parish
Parishwide
School
District
,
GO
,
2021
,
AGMC
Insured
,
3
%
,
3/01/36
...
505,000
452,397
Calcasieu
Parish
School
District
No.
23
,
GO
,
2019
,
BAM
Insured
,
4
%
,
9/01/36
.....
670,000
673,464
Calcasieu
Parish
School
District
No.
31
,
GO,
2018,
BAM
Insured,
5%,
3/01/36
...................................
1,000,000
1,087,882
GO,
2018,
BAM
Insured,
5%,
3/01/38
...................................
1,000,000
1,077,223
GO,
2019,
BAM
Insured,
4%,
3/01/37
...................................
1,000,000
1,004,564
Central
Community
School
System
,
GO,
2020,
4%,
3/01/39
.............................................
1,125,000
1,100,903
GO,
2020,
4%,
3/01/40
.............................................
1,190,000
1,152,009
City
of
Bossier
City
,
Utilities
,
Revenue
,
2014
,
Pre-Refunded
,
5
%
,
10/01/37
........
1,280,000
1,316,334
City
of
Lafayette
,
Sales
&
Use
Tax,
Revenue,
2019
A,
5%,
5/01/44
..........................
4,350,000
4,678,613
Sales
&
Use
Tax,
Revenue,
2020
B,
4%,
3/01/45
..........................
5,000,000
4,781,090
City
of
New
Orleans
,
GO,
2021
A,
5%,
12/01/39
...........................................
6,000,000
6,398,546
Sewerage
Service,
Revenue,
2020
B,
5%,
6/01/45
.........................
1,700,000
1,759,633
Sewerage
Service,
Revenue,
2020
B,
4%,
6/01/50
.........................
1,300,000
1,160,865
City
of
Ruston
,
Sales
Tax
,
Revenue
,
2016
,
AGMC
Insured
,
5
%
,
6/01/35
...........
1,085,000
1,134,380
City
of
Shreveport
,
Water
&
Sewer,
Revenue,
2016
B,
5%,
12/01/41
..........................
4,000,000
4,181,057
Water
&
Sewer,
Revenue,
2020
B,
Refunding,
3%,
12/01/50
..................
5,070,000
3,686,854
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
2,254,018
East
Baton
Rouge
Sewerage
Commission
,
Revenue,
2014
B,
Pre-Refunded,
5%,
2/01/39
............................
5,000,000
5,178,858
Revenue,
2019
A,
Refunding,
4%,
2/01/45
...............................
5,000,000
4,682,307
Revenue,
2020
A,
Refunding,
5%,
2/01/31
...............................
750,000
852,646
Greater
New
Orleans
Expressway
Commission
,
Revenue
,
2017
,
AGMC
Insured
,
5
%
,
11/01/47
........................................................
4,000,000
4,110,229
Jefferson
Parish
Consolidated
Sewerage
District
No.
1
,
Revenue
,
2022
,
BAM
Insured
,
4
%
,
2/01/38
......................................................
1,000,000
984,211
Jefferson
Parish
Consolidated
Waterworks
District
No.
2
,
Revenue
,
2022
,
Refunding
,
BAM
Insured
,
4
%
,
2/01/40
...........................................
5,000,000
4,847,524
Jefferson
Sales
Tax
District
,
Revenue
,
2017
B
,
AGMC
Insured
,
5
%
,
12/01/42
.......
2,250,000
2,347,368
Lafayette
Consolidated
Government
,
GO,
2020,
Refunding,
3%,
3/01/34
.....................................
250,000
235,132
GO,
2020,
Refunding,
3%,
3/01/35
.....................................
200,000
183,488
Lafayette
Parish
School
Board
,
Sales
Tax
,
Revenue
,
2023
,
4
%
,
4/01/53
..........
2,500,000
2,354,376
Livingston
Parish
School
Board
,
Sales
&
Use
Tax,
Revenue,
2021
A,
Refunding,
4%,
5/01/30
.................
500,000
534,238
Sales
&
Use
Tax,
Revenue,
2021
A,
Refunding,
4%,
5/01/31
.................
1,300,000
1,390,764
Sales
&
Use
Tax,
Revenue,
2021
A,
Refunding,
4%,
5/01/32
.................
1,500,000
1,590,108
Louisiana
Correctional
Facilities
Corp.
,
State
of
Louisiana
Office
of
Juvenile
Justice,
Revenue,
2021,
4%,
10/01/37
......
875,000
878,431
State
of
Louisiana
Office
of
Juvenile
Justice,
Revenue,
2021,
4%,
10/01/40
......
1,305,000
1,261,445
Louisiana
Housing
Corp.
,
Revenue,
2021
B,
GNMA
Insured,
2.05%,
6/01/36
.........................
615,000
465,645
Revenue,
2021
B,
GNMA
Insured,
2.2%,
6/01/41
..........................
1,965,000
1,420,298
Franklin
Tax-Free
Trust
Schedule
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
Local
Government
Environmental
Facilities
&
Community
Development
Authority
,
a
City
of
New
Orleans,
Revenue,
144A,
2021,
4%,
11/01/46
...................
$
2,000,000
$
1,724,206
East
Ascension
Parish
Gravity
Drainage
District
No.
1,
Revenue,
2015,
Refunding,
BAM
Insured,
5%,
12/01/40
........................................
2,925,000
3,029,036
Entergy
Louisiana
LLC,
Revenue,
2021
A,
Refunding,
2%,
6/01/30
.............
1,500,000
1,310,922
Entergy
Louisiana
LLC,
Revenue,
2021
B,
Refunding,
2.5%,
4/01/36
...........
3,000,000
2,422,719
Innovative
Student
Facilities,
Inc.,
Revenue,
2016
A,
AGMC
Insured,
4%,
10/01/33
.
800,000
810,964
Innovative
Student
Facilities,
Inc.,
Revenue,
2016
A,
AGMC
Insured,
4%,
10/01/34
.
620,000
625,523
a
Invest
in
Americas
Veterans
Foundation
Louisiana,
Inc.,
Revenue,
144A,
2020
A,
Refunding,
4.25%,
12/01/50
........................................
8,000,000
6,154,627
a
Parish
of
Assumption,
Revenue,
144A,
2021,
3.875%,
11/01/45
...............
1,000,000
838,836
a
Parish
of
St.
Bernard,
Revenue,
144A,
2021,
4%,
11/01/45
...................
1,225,000
1,062,931
a
Parish
of
St.
Charles,
Revenue,
144A,
2022,
4.5%,
11/01/47
.................
2,000,000
1,851,031
a
Parish
of
St.
Tammany
LA
GOMESA,
Revenue,
144A,
2020,
3.875%,
11/01/45
....
2,900,000
2,432,625
a
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A,
4%,
10/01/43
...
250,000
189,266
a
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A,
4.25%,
10/01/48
221,200
163,196
a
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A,
4.5%,
10/01/53
.
309,471
228,341
a
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A,
5%,
10/01/61
...
249,529
194,661
Ragin
Cajun
Facilities,
Inc.,
Revenue,
2017,
Refunding,
AGMC
Insured,
5%,
10/01/39
.......................................................
2,680,000
2,766,855
University
of
Louisiana
at
Lafayette,
Revenue,
2018,
AGMC
Insured,
5%,
10/01/48
3,500,000
3,553,173
University
of
Louisiana
System,
Revenue,
2019,
Refunding,
AGMC
Insured,
4%,
8/01/34
........................................................
1,000,000
1,013,553
University
of
Louisiana
System
Board
of
Supervisors,
Revenue,
2021,
Refunding,
AGMC
Insured,
4%,
10/01/39
.......................................
1,060,000
1,007,829
University
of
Louisiana
System
Board
of
Supervisors,
Revenue,
2021,
Refunding,
AGMC
Insured,
4%,
10/01/41
.......................................
500,000
464,033
University
of
Louisiana
System
Board
of
Supervisors,
Revenue,
2021,
Refunding,
AGMC
Insured,
4%,
10/01/43
.......................................
500,000
456,384
University
of
Louisiana
System
Board
of
Supervisors,
Revenue,
2022,
Refunding,
4%,
5/01/30
....................................................
1,020,000
1,044,063
University
of
Louisiana
System
Board
of
Supervisors,
Revenue,
2022,
Refunding,
4%,
5/01/31
....................................................
1,065,000
1,089,504
University
of
Louisiana
System
Board
of
Supervisors,
Revenue,
2022,
Refunding,
4%,
5/01/32
....................................................
1,100,000
1,123,896
University
of
Louisiana
System
Board
of
Supervisors,
Revenue,
2022,
Refunding,
4%,
5/01/33
....................................................
1,155,000
1,178,144
Woman's
Hospital
Foundation,
Revenue,
2017
A,
Refunding,
5%,
10/01/44
......
5,000,000
5,093,834
Louisiana
Public
Facilities
Authority
,
Revenue,
2017
A,
4%,
12/15/50
.......................................
1,940,000
1,783,459
Revenue,
2017
A,
Pre-Refunded,
4%,
12/15/50
...........................
60,000
62,845
CHRISTUS
Health
Obligated
Group,
Revenue,
2018
E,
5%,
7/01/48
...........
5,000,000
5,127,380
Franciscan
Missionaries
of
Our
Lady
Health
System
Obligated
Group,
Revenue,
2015
A,
5%,
7/01/35
..............................................
4,965,000
5,093,152
Franciscan
Missionaries
of
Our
Lady
Health
System
Obligated
Group,
Revenue,
2015
A,
Pre-Refunded,
5%,
7/01/35
..................................
35,000
36,523
Louisiana
Children's
Medical
Center
Obligated
Group,
Revenue,
2015
A-1,
5%,
6/01/45
........................................................
10,000,000
10,198,953
Louisiana
Children's
Medical
Center
Obligated
Group,
Revenue,
2020
A,
4%,
6/01/50
5,000,000
4,599,466
Louisiana
State
University
&
Agricultural
&
Mechanical
College
Auxiliary,
Revenue,
2016
A,
5%,
7/01/46
..............................................
6,500,000
6,588,288
Louisiana
State
University
&
Agricultural
&
Mechanical
College
Auxiliary,
Revenue,
2017,
5%,
7/01/52
................................................
2,310,000
2,335,457
Loyola
University
New
Orleans,
Revenue,
2021,
Refunding,
4%,
10/01/37
.......
2,020,000
1,885,005
Loyola
University
New
Orleans,
Revenue,
2021,
Refunding,
4%,
10/01/39
.......
3,460,000
3,185,459
Loyola
University
New
Orleans,
Revenue,
2021,
Refunding,
4%,
10/01/41
.......
2,850,000
2,562,823
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2002
B,
ETM,
5.75%,
5/15/23
2,500,000
2,512,871
Franklin
Tax-Free
Trust
Schedule
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)
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2016,
Pre-Refunded,
5%,
5/15/34
........................................................
$
30,000
$
31,694
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2016,
Pre-Refunded,
5%,
5/15/47
........................................................
20,000
21,130
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
5/15/46
12,000,000
12,137,846
a
Provident
Group
-
HSC
Properties,
Inc.,
Revenue,
144A,
2020
A-1,
5.5%,
1/01/50
.
2,000,000
1,921,312
Roman
Catholic
Church
of
the
Archdiocese
of
New
Orleans,
Revenue,
2017,
Refunding,
5%,
7/01/37
............................................
3,750,000
3,187,500
Tulane
University,
Revenue,
2013
B,
5%,
10/01/37
.........................
5,540,000
5,545,324
Tulane
University,
Revenue,
2016
A,
Refunding,
5%,
12/15/41
................
3,000,000
3,127,041
Tulane
University,
Revenue,
2020
A,
Refunding,
5%,
4/01/45
.................
1,000,000
1,054,303
Louisiana
Stadium
&
Exposition
District
,
Revenue
,
2020
,
5
%
,
7/03/23
............
1,150,000
1,151,137
Louisiana
State
Transportation
Authority
,
Revenue
,
2013
A
,
Pre-Refunded
,
5
%
,
8/15/38
4,500,000
4,537,151
Louisiana
State
University
&
Agricultural
&
Mechanical
College
,
Auxiliary
,
Revenue
,
2016
A
,
Pre-Refunded
,
5
%
,
7/01/40
....................................
4,500,000
4,795,574
Natchitoches
Parish
School
District
No.
9
,
GO
,
2018
,
AGMC
Insured
,
5
%
,
3/01/38
...
1,440,000
1,559,939
New
Orleans
Aviation
Board
,
Louis
Armstrong
New
Orleans
International
Airport
,
Revenue
,
2017
A
,
5
%
,
1/01/48
........................................
10,000,000
10,238,115
Parish
of
East
Baton
Rouge
Capital
Improvements
District
,
Revenue,
2019,
4%,
8/01/44
.........................................
2,055,000
1,991,426
Revenue,
2019,
5%,
8/01/48
.........................................
2,500,000
2,616,039
Parish
of
Terrebonne
,
Sales
&
Use
Tax,
Revenue,
2020
A,
4%,
3/01/35
..........................
1,015,000
1,025,926
Sales
&
Use
Tax,
Revenue,
2020
A,
4%,
3/01/41
..........................
2,660,000
2,551,967
Port
New
Orleans
Board
of
Commissioners
,
Revenue,
2018
A,
AGMC
Insured,
5%,
4/01/48
............................
2,750,000
2,832,217
Revenue,
2018
B,
Refunding,
AGMC
Insured,
5%,
4/01/43
...................
2,000,000
2,040,006
Revenue,
2020
D,
5%,
4/01/50
........................................
6,000,000
6,192,252
Rapides
Parish
Consolidated
School
District
No.
62
,
GO
,
2022
,
AGMC
Insured
,
5
%
,
3/01/42
.........................................................
1,100,000
1,179,949
St.
Tammany
Parish
Hospital
Service
District
No.
1
,
Revenue
,
2018
A
,
Refunding
,
5
%
,
7/01/48
.........................................................
5,500,000
5,515,645
State
of
Louisiana
,
GO,
2016
A,
5%,
9/01/36
............................................
5,000,000
5,240,076
GO,
2019
A,
5%,
3/01/37
............................................
3,000,000
3,267,046
Gasoline
&
Fuels
Tax,
Revenue,
First
Lien,
2015
A,
Pre-Refunded,
5%,
5/01/41
...
3,000,000
3,116,650
Gasoline
&
Fuels
Tax,
Revenue,
Second
Lien,
2017
C,
Refunding,
5%,
5/01/40
...
5,000,000
5,265,920
Gasoline
&
Fuels
Tax,
Revenue,
Second
Lien,
2017
C,
Refunding,
5%,
5/01/45
...
10,000,000
10,409,107
Tangipahoa
Parish
Hospital
Service
District
No.
1
,
Revenue,
2021,
Refunding,
4%,
2/01/35
.................................
2,250,000
2,204,030
Revenue,
2021,
Refunding,
4%,
2/01/38
.................................
2,000,000
1,831,365
Terrebonne
Levee
&
Conservation
District
,
Sales
Tax
,
Revenue
,
2020
B
,
Refunding
,
4
%
,
6/01/41
......................................................
1,000,000
965,006
West
Feliciana
Parish
Parishwide
Consolidated
School
District
No.
1
,
GO
,
2020
,
4
%
,
3/01/50
.........................................................
3,000,000
2,739,255
270,278,756
South
Carolina
0.4%
South
Carolina
Jobs-Economic
Development
Authority
,
a
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
700,000
560,426
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
700,000
558,709
1,119,135
Franklin
Tax-Free
Trust
Schedule
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
See
Abbreviations
on
page
148
.
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Texas
0.7%
City
of
Dallas
,
DHFC
-
Briscoe
Apartments
LLC
(The)
,
Revenue,
Senior
Lien
,
2022
A
,
6
%
,
12/01/62
.....................................................
$
450,000
$
462,573
a
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
900,000
667,565
a
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
A-2
,
5
%
,
12/01/52
............
1,250,000
914,495
2,044,633
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
560,451
Wisconsin
1.4%
a
Public
Finance
Authority
,
Revenue,
144A,
2022,
B-1,
4%,
12/28/44
................................
800,000
633,883
AL-FL
Portfolio
Obligated
Group,
Revenue,
144A,
2021
A,
3.4%,
12/01/36
.......
1,225,000
981,096
Gulf
Coast
Portfolio
Obligated
Group,
Revenue,
144A,
2021,
5.25%,
12/01/23
....
1,800,000
1,800,000
Pine
Forest
2022
Obligated
Group,
Revenue,
144A,
2022
A,
6.5%,
12/01/52
.....
500,000
494,741
3,909,720
U.S.
Territories
2.2%
Puerto
Rico
2.2%
Puerto
Rico
Electric
Power
Authority
,
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/32
....................
500,000
501,297
b
Revenue,
WW,
5.25%,
7/01/33
........................................
855,000
600,638
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue,
2022
A,
5%,
7/01/62
........................................
585,911
543,432
Revenue,
2022
B,
Zero
Cpn.,
7/01/32
...................................
380,763
237,977
Revenue,
2022
C,
Zero
Cpn.,
7/01/53
..................................
651,329
361,599
Puerto
Rico
Sales
Tax
Financing
Corp.
,
Sales
Tax,
Revenue,
A-1,
4.75%,
7/01/53
................................
3,500,000
3,137,337
Sales
Tax,
Revenue,
A-1,
5%,
7/01/58
..................................
1,196,000
1,109,649
6,491,929
Total
U.S.
Territories
....................................................................
6,491,929
Total
Municipal
Bonds
(Cost
$308,359,816)
.....................................
285,724,267
a
a
a
a
a
Total
Investments
(Cost
$308,359,816)
98.0%
...................................
$285,724,267
Other
Assets,
less
Liabilities
2.0%
.............................................
5,715,701
Net
Assets
100.0%
...........................................................
$291,439,968
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,
2023,
the
aggregate
value
of
these
securities
was
$24,693,332,
representing
8.5%
of
net
assets.
b
See
Note
7
regarding
defaulted
securities.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Maryland
Tax-Free
Income
Fund
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
75
a
Year
Ended
February
28,
Year
Ended
February
28,
2019
b
2023
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.71
$10.97
$11.35
$10.80
$10.76
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.26
0.23
0.28
0.29
0.15
Net
realized
and
unrealized
gains
(losses)
...........
(0.96)
(0.26)
(0.38)
0.57
0.04
Total
from
investment
operations
....................
(0.70)
(0.03)
(0.10)
0.86
0.19
Less
distributions
from:
Net
investment
income
..........................
(0.26)
(0.23)
(0.28)
(0.31)
(0.15)
Net
asset
value,
end
of
year
.......................
$9.75
$10.71
$10.97
$11.35
$10.80
Total
return
e
...................................
(6.56)%
(0.30)%
(0.84)%
8.11%
1.84%
Ratios
to
average
net
assets
f
Expenses
g
....................................
0.89%
0.87%
0.87%
0.88%
0.88%
Net
investment
income
...........................
2.62%
2.10%
2.55%
2.65%
2.95%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$80,313
$90,950
$78,374
$60,104
$26,572
Portfolio
turnover
rate
............................
37.44%
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
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
76
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.71
$10.97
$11.36
$10.80
$10.76
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.27
0.25
0.30
0.31
0.33
Net
realized
and
unrealized
gains
(losses)
...........
(0.96)
(0.26)
(0.39)
0.58
0.05
Total
from
investment
operations
....................
(0.69)
(0.01)
(0.09)
0.89
0.38
Less
distributions
from:
Net
investment
income
..........................
(0.27)
(0.25)
(0.30)
(0.33)
(0.34)
Net
asset
value,
end
of
year
.......................
$9.75
$10.71
$10.97
$11.36
$10.80
Total
return
d
...................................
(6.42)%
(0.15)%
(0.69)%
8.27%
3.59%
Ratios
to
average
net
assets
Expenses
e
....................................
0.74%
0.72%
0.72%
0.73%
0.73%
Net
investment
income
...........................
2.76%
2.25%
2.72%
2.80%
3.10%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$162,447
$214,264
$240,637
$270,309
$279,750
Portfolio
turnover
rate
............................
37.44%
15.00%
28.27%
7.50%
5.33%
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
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,
2023
2022
2021
2020
a
2019
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.94
$11.20
$11.59
$11.02
$10.98
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.22
0.19
0.24
0.25
0.28
Net
realized
and
unrealized
gains
(losses)
...........
(0.99)
(0.26)
(0.39)
0.59
0.04
Total
from
investment
operations
....................
(0.77)
(0.07)
(0.15)
0.84
0.32
Less
distributions
from:
Net
investment
income
..........................
(0.22)
(0.19)
(0.24)
(0.27)
(0.28)
Net
asset
value,
end
of
year
.......................
$9.95
$10.94
$11.20
$11.59
$11.02
Total
return
d
...................................
(7.08)%
(0.70)%
(1.30)%
7.75%
2.94%
Ratios
to
average
net
assets
Expenses
e
....................................
1.28%
1.26%
1.26%
1.28%
1.28%
Net
investment
income
...........................
2.15%
1.65%
2.13%
2.25%
2.55%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$17,531
$24,227
$34,896
$45,502
$56,323
Portfolio
turnover
rate
............................
37.44%
15.00%
28.27%
7.50%
5.33%
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
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,
2023
2022
2021
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.73
$10.99
$11.37
$10.82
$10.78
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.29
0.26
0.31
0.32
0.35
Net
realized
and
unrealized
gains
(losses)
...........
(0.96)
(0.25)
(0.37)
0.58
0.04
Total
from
investment
operations
....................
(0.67)
0.01
(0.06)
0.90
0.39
Less
distributions
from:
Net
investment
income
..........................
(0.29)
(0.27)
(0.32)
(0.35)
(0.35)
Net
asset
value,
end
of
year
.......................
$9.77
$10.73
$10.99
$11.37
$10.82
Total
return
....................................
(6.27)%
(—)%
d
(0.55)%
8.41%
3.71%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.60%
0.57%
0.59%
0.60%
0.61%
Expenses
net
of
waiver
and
payments
by
affiliates
e
......
0.60%
0.57%
f
0.57%
0.58%
0.58%
Net
investment
income
...........................
2.91%
2.39%
2.81%
2.95%
3.25%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$11,709
$13,771
$8,033
$3,642
$1,753
Portfolio
turnover
rate
............................
37.44%
15.00%
28.27%
7.50%
5.33%
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
Rounds
to
less
than
0.01%.
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
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,
2023
2022
2021
2020
a
2019
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.73
$10.98
$11.37
$10.81
$10.77
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.28
0.26
0.31
0.32
0.34
Net
realized
and
unrealized
gains
(losses)
...........
(0.97)
(0.25)
(0.39)
0.58
0.05
Total
from
investment
operations
....................
(0.69)
0.01
(0.08)
0.90
0.39
Less
distributions
from:
Net
investment
income
..........................
(0.28)
(0.26)
(0.31)
(0.34)
(0.35)
Net
asset
value,
end
of
year
.......................
$9.76
$10.73
$10.98
$11.37
$10.81
Total
return
....................................
(6.41)%
0.04%
(0.68)%
8.47%
3.68%
Ratios
to
average
net
assets
Expenses
d
....................................
0.64%
0.62%
0.62%
0.63%
0.63%
Net
investment
income
...........................
2.87%
2.35%
2.81%
2.90%
3.20%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$45,667
$55,284
$57,854
$54,079
$44,264
Portfolio
turnover
rate
............................
37.44%
15.00%
28.27%
7.50%
5.33%
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
Schedule
of
Investments,
February
28,
2023
Franklin
Maryland
Tax-Free
Income
Fund
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
99.1%
Delaware
0.6%
HTA
HRRB
Custodial
Trust
,
Revenue
,
2007
CC
,
5.25
%
,
7/01/33
................
$
1,805,000
$
1,826,691
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
1,062,786
Maryland
88.2%
City
of
Baltimore
,
Harbor
Point
Special
Taxing
District,
Revenue,
2016,
Refunding,
5.125%,
6/01/43
.
3,000,000
2,977,743
Wastewater
Utility
Fund,
Revenue,
2017
A,
5%,
7/01/46
.....................
5,000,000
5,171,403
Wastewater
Utility
Fund,
Revenue,
2022
A,
5%,
7/01/38
.....................
1,415,000
1,589,768
Wastewater
Utility
Fund,
Revenue,
2022
A,
5%,
7/01/39
.....................
1,495,000
1,666,615
Water
Utility
Fund,
Revenue,
2020
A,
5%,
7/01/50
.........................
9,115,000
9,708,653
City
of
Gaithersburg
,
Asbury
Maryland
Obligated
Group
,
Revenue
,
2022
,
4.5
%
,
1/01/42
1,500,000
1,273,657
b
County
of
Anne
Arundel
,
Glenview
Housing
LP
,
Revenue
,
2009
,
Mandatory
Put
,
5
%
,
1/01/27
.........................................................
1,815,000
1,817,553
a
County
of
Frederick
,
Urbana
Community
Development
Authority
,
Special
Tax
,
144A,
2020
C
,
4
%
,
7/01/50
...............................................
3,995,000
3,427,201
County
of
Harford
,
Beechtree
Estates
Development
District,
Tax
Allocation,
2021,
Refunding,
4%,
7/01/31
........................................................
150,000
157,542
Beechtree
Estates
Development
District,
Tax
Allocation,
2021,
Refunding,
4%,
7/01/36
........................................................
750,000
754,601
Beechtree
Estates
Development
District,
Tax
Allocation,
2021,
Refunding,
4%,
7/01/40
........................................................
675,000
646,789
County
of
Prince
George's
,
GO,
2018
A,
4%,
7/15/35
............................................
5,000,000
5,149,561
GO,
2020
A,
5%,
7/15/40
............................................
900,000
968,477
Howard
County
Housing
Commission
,
Revenue,
2013,
5%,
10/01/28
........................................
10,000,000
10,103,176
Revenue,
2016,
4%,
6/01/46
.........................................
2,000,000
1,828,630
Revenue,
2017,
5%,
12/01/46
........................................
5,000,000
5,180,281
Maryland
Community
Development
Administration
,
Housing,
Revenue,
2019
D,
3%,
7/01/39
................................
1,500,000
1,265,943
Housing,
Revenue,
2019
D,
3.2%,
7/01/44
...............................
1,000,000
851,049
Maryland
Community
Development
Administration
Local
Government
Infrastructure
,
Revenue,
2017
A-1,
4%,
6/01/47
......................................
2,300,000
2,180,859
Revenue,
2018
A-1,
5%,
6/01/48
......................................
1,310,000
1,382,975
Revenue,
Senior
Lien,
2019
B-1,
4%,
6/01/49
.............................
3,000,000
2,822,320
Maryland
Economic
Development
Corp.
,
Annapolis
Parking
System,
Revenue,
Senior
Lien,
2022
A,
5.25%,
6/30/53
.......
5,000,000
5,179,112
Frostburg
State
University
Project,
Revenue,
Senior
Lien,
2013,
Refunding,
5%,
10/01/33
.......................................................
5,000,000
5,003,756
Morgan
View
&
Thurgood
Marshall
Student
Housing,
Revenue,
2020,
4%,
7/01/40
.
1,000,000
903,252
Morgan
View
&
Thurgood
Marshall
Student
Housing,
Revenue,
2020,
5%,
7/01/50
.
1,250,000
1,237,758
Morgan
View
&
Thurgood
Marshall
Student
Housing,
Revenue,
2022
A,
6%,
7/01/58
4,620,000
4,989,386
Purple
Line
Transit
Partners
LLC,
Revenue,
2022
B,
5.25%,
6/30/47
...........
5,000,000
5,029,883
Purple
Line
Transit
Partners
LLC,
Revenue,
2022
B,
5.25%,
6/30/52
...........
5,000,000
5,020,113
University
of
Maryland
College
Park,
Revenue,
2016,
Refunding,
AGMC
Insured,
5%,
6/01/35
........................................................
4,225,000
4,402,288
University
of
Maryland
College
Park,
Revenue,
2016,
Refunding,
AGMC
Insured,
5%,
6/01/43
........................................................
3,305,000
3,376,848
University
Park
Phase
I
&
II
at
Salisbury
University,
Revenue,
2013,
Refunding,
5%,
6/01/34
........................................................
2,040,000
2,029,440
University
Village
at
Sheppard
Pratt,
Revenue,
2012,
Refunding,
5%,
7/01/27
.....
1,500,000
1,500,416
University
Village
at
Sheppard
Pratt,
Revenue,
2012,
Refunding,
5%,
7/01/33
.....
2,495,000
2,494,999
West
Village
&
Millennium
Hall
Student
Housing
at
Towson
University,
Revenue,
Senior
Lien,
2012,
5%,
7/01/27
......................................
1,145,000
1,145,701
Franklin
Tax-Free
Trust
Schedule
of
Investments
Franklin
Maryland
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)
Maryland
(continued)
Maryland
Health
&
Higher
Educational
Facilities
Authority
,
Adventist
Healthcare
Obligated
Group,
Revenue,
2016
A,
5.5%,
1/01/46
.........
$
9,750,000
$
9,811,395
Adventist
Healthcare
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
1/01/38
...
865,000
763,770
Adventist
Healthcare
Obligated
Group,
Revenue,
2021
B,
4%,
1/01/51
..........
2,000,000
1,652,116
Charlestown
Community,
Inc.,
Revenue,
2016
A,
Refunding,
5%,
1/01/45
........
4,170,000
4,239,013
Frederick
Health,
Inc.
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
7/01/50
..
1,715,000
1,500,984
Goucher
College,
Revenue,
2017
A,
Refunding,
5%,
7/01/44
.................
7,470,000
7,653,211
Johns
Hopkins
Medical
Institutions
Parking
System,
Revenue,
2001,
AMBAC
Insured,
5%,
7/01/27
..............................................
655,000
659,810
Johns
Hopkins
Medical
Institutions
Parking
System,
Revenue,
2004,
AMBAC
Insured,
5%,
7/01/34
..............................................
5,000,000
5,037,048
LifeBridge
Health
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
7/01/47
.....
4,000,000
4,072,440
LifeBridge
Health
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
7/01/44
.....
2,000,000
2,046,675
Loyola
University
Maryland,
Inc.,
Revenue,
2014,
Refunding,
5%,
10/01/45
......
2,250,000
2,293,474
Loyola
University
Maryland,
Inc.,
Revenue,
2019
A,
Refunding,
5%,
10/01/49
.....
2,000,000
2,115,643
Maryland
Institute
College
of
Art,
Revenue,
2012,
5%,
6/01/29
................
1,000,000
1,000,865
Maryland
Institute
College
of
Art,
Revenue,
2016,
Refunding,
4%,
6/01/42
.......
5,325,000
4,926,693
MedStar
Health
Obligated
Group,
Revenue,
1997,
AMBAC
Insured,
ETM,
5%,
7/01/27
........................................................
7,240,000
7,546,694
MedStar
Health
Obligated
Group,
Revenue,
2013
A,
5%,
8/15/38
..............
5,000,000
5,019,931
MedStar
Health
Obligated
Group,
Revenue,
2015,
Refunding,
5%,
8/15/38
.......
2,100,000
2,133,084
MedStar
Health
Obligated
Group,
Revenue,
2017
A,
5%,
5/15/45
..............
5,000,000
5,098,695
Meritus
Medical
Center
Obligated
Group,
Revenue,
2015,
Refunding,
5%,
7/01/40
.
8,535,000
8,641,961
Stevenson
University,
Inc.,
Revenue,
2021
A,
Refunding,
5%,
6/01/28
..........
630,000
669,002
Stevenson
University,
Inc.,
Revenue,
2021
A,
Refunding,
5%,
6/01/30
..........
1,125,000
1,216,271
Stevenson
University,
Inc.,
Revenue,
2021
A,
Refunding,
5%,
6/01/32
..........
800,000
868,548
Stevenson
University,
Inc.,
Revenue,
2021
A,
Refunding,
4%,
6/01/34
..........
350,000
348,018
Stevenson
University,
Inc.,
Revenue,
2021
A,
Refunding,
4%,
6/01/36
..........
1,125,000
1,088,486
Stevenson
University,
Inc.,
Revenue,
2021
A,
Refunding,
4%,
6/01/40
..........
1,850,000
1,719,693
Stevenson
University,
Inc.,
Revenue,
2021
A,
Refunding,
4%,
6/01/46
..........
1,000,000
882,998
Stevenson
University,
Inc.,
Revenue,
2021
A,
Refunding,
4%,
6/01/55
..........
3,250,000
2,737,122
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2017
MD,
5%,
12/01/46
........
1,680,000
1,713,736
University
of
Maryland
Medical
System
Obligated
Group,
Revenue,
2017
B,
Refunding,
5%,
7/01/39
............................................
10,000,000
10,343,716
University
of
Maryland
Medical
System
Obligated
Group,
Revenue,
2017
D,
4%,
7/01/48
........................................................
5,000,000
4,578,319
Maryland
Industrial
Development
Financing
Authority
,
McDonogh
School,
Inc.,
Revenue,
2019,
Refunding,
4%,
9/01/43
..............
1,100,000
1,015,916
McDonogh
School,
Inc.,
Revenue,
2019,
Refunding,
4%,
9/01/48
..............
610,000
551,752
Maryland
Stadium
Authority
,
Baltimore
City
Public
School
Construction
Financing
Fund,
Revenue,
2016,
Pre-
Refunded,
5%,
5/01/46
............................................
4,085,000
4,344,756
Baltimore
City
Public
School
Construction
Financing
Fund,
Revenue,
2020
A,
5%,
5/01/50
........................................................
12,225,000
12,985,060
Built
to
Learn,
Revenue,
2021,
4%,
6/01/35
..............................
1,590,000
1,627,327
Built
to
Learn,
Revenue,
2022
A,
4%,
6/01/47
.............................
5,000,000
4,585,470
Maryland
State
Transportation
Authority
,
Revenue,
2020,
4%,
7/01/45
.........................................
4,000,000
3,857,761
Revenue,
2021
A,
Refunding,
5%,
7/01/46
...............................
4,900,000
5,307,606
State
of
Maryland
,
GO
,
2022
A
,
5
%
,
6/01/37
...............................
10,000,000
11,460,905
State
of
Maryland
Department
of
Transportation
,
Maryland
Aviation
Administration,
Revenue,
2021
B,
5%,
8/01/46
..............
3,000,000
3,086,241
Maryland
Aviation
Administration,
Revenue,
2021
B,
4%,
8/01/51
..............
3,500,000
3,147,835
Town
of
Chestertown
,
Washington
College,
Revenue,
2021
A,
Refunding,
4%,
3/01/36
...............
2,700,000
2,513,080
Washington
College,
Revenue,
2021
A,
Refunding,
4%,
3/01/37
...............
3,095,000
2,836,043
Franklin
Tax-Free
Trust
Schedule
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)
University
System
of
Maryland
,
Revenue
,
2021
A
,
Refunding
,
4
%
,
4/01/32
........
$
2,855,000
$
3,099,558
Washington
Suburban
Sanitary
Commission
,
Revenue,
2023,
4%,
6/01/49
.........................................
9,500,000
9,182,041
Revenue,
Second
Series,
2016,
4%,
6/01/43
.............................
5,000,000
4,922,151
280,140,661
New
Jersey
0.8%
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue
,
2022
BB
,
4
%
,
6/15/39
...
2,500,000
2,417,313
South
Carolina
0.6%
South
Carolina
Jobs-Economic
Development
Authority
,
a
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
700,000
560,427
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
700,000
558,709
a
Columbia
Portfolio
Obligated
Group,
Revenue,
144A,
2022
A-2,
Zero
Cpn.,
6/01/52
1,350,000
845,501
1,964,637
Texas
0.7%
City
of
Dallas
,
DHFC
-
Briscoe
Apartments
LLC
(The)
,
Revenue,
Senior
Lien
,
2022
A
,
6
%
,
12/01/62
.....................................................
550,000
565,367
a
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
1,000,000
741,739
a
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
A-2
,
5
%
,
12/01/52
............
1,300,000
951,075
2,258,181
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
560,451
Wisconsin
1.0%
a
Public
Finance
Authority
,
Revenue,
144A,
2022,
B-1,
4%,
12/28/44
................................
800,000
633,883
Gulf
Coast
Portfolio
Obligated
Group,
Revenue,
144A,
2021,
5.25%,
12/01/23
....
2,000,000
2,000,000
Pine
Forest
2022
Obligated
Group,
Revenue,
144A,
2022
A,
6.5%,
12/01/52
.....
500,000
494,741
3,128,624
U.S.
Territories
6.7%
District
of
Columbia
3.2%
Washington
Metropolitan
Area
Transit
Authority
,
Revenue,
2017
B,
5%,
7/01/42
........................................
2,500,000
2,616,701
Dedicated,
Revenue,
2020
A,
5%,
7/15/45
...............................
2,500,000
2,668,322
Dedicated,
Revenue,
2021
A,
4%,
7/15/43
...............................
1,750,000
1,681,668
Dedicated,
Revenue,
2021
A,
5%,
7/15/46
...............................
3,000,000
3,219,448
10,186,139
Puerto
Rico
3.5%
HTA
TRRB
Custodial
Trust
,
Revenue,
2005
L,
5.25%,
7/01/41
.....................................
2,550,000
2,578,018
Puerto
Rico
Electric
Power
Authority
,
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/32
....................
2,000,000
2,005,189
c
Revenue,
WW,
5.5%,
7/01/38
.........................................
1,975,000
1,397,312
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue,
2022
A,
5%,
7/01/62
........................................
94,046
87,228
Revenue,
2022
B,
Zero
Cpn.,
7/01/32
...................................
61,117
38,198
Revenue,
2022
C,
Zero
Cpn.,
7/01/53
..................................
104,547
58,041
Puerto
Rico
Sales
Tax
Financing
Corp.
,
Sales
Tax,
Revenue,
A-1,
4.75%,
7/01/53
................................
3,600,000
3,226,976
Franklin
Tax-Free
Trust
Schedule
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
s
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
U.S.
Territories
(continued)
Puerto
Rico
(continued)
Puerto
Rico
Sales
Tax
Financing
Corp.,
(continued)
Sales
Tax,
Revenue,
A-1,
5%,
7/01/58
..................................
$
1,900,000
$
1,762,820
11,153,782
Total
U.S.
Territories
....................................................................
21,339,921
Total
Municipal
Bonds
(Cost
$334,791,804)
.....................................
314,699,265
a
a
a
a
Short
Term
Investments
0.2%
Municipal
Bonds
0.2%
Maryland
0.2%
d
County
of
Montgomery
,
GO
,
2017
E
,
SPA
US
Bank
NA
,
Daily
VRDN
and
Put
,
2.4
%
,
11/01/37
........................................................
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
$335,291,804)
99.3%
...................................
$315,199,265
Other
Assets,
less
Liabilities
0.7%
.............................................
2,467,438
Net
Assets
100.0%
...........................................................
$317,666,703
See
Abbreviations
on
page
148
.
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,
2023,
the
aggregate
value
of
these
securities
was
$11,277,804,
representing
3.6%
of
net
assets.
b
The
maturity
date
shown
represents
the
mandatory
put
date.
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
Highlights
Franklin
Missouri
Tax-Free
Income
Fund
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The
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notes
are
an
integral
part
of
these
financial
statements.
84
a
Year
Ended
February
28,
Year
Ended
February
28,
2019
b
2023
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.48
$11.85
$12.09
$11.47
$11.41
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.31
0.28
0.29
0.31
0.16
Net
realized
and
unrealized
gains
(losses)
...........
(1.22)
(0.37)
(0.24)
0.63
0.06
Total
from
investment
operations
....................
(0.91)
(0.09)
0.05
0.94
0.22
Less
distributions
from:
Net
investment
income
..........................
(0.30)
(0.28)
(0.29)
(0.32)
(0.16)
Net
asset
value,
end
of
year
.......................
$10.27
$11.48
$11.85
$12.09
$11.47
Total
return
e
...................................
(7.92)%
(0.84)%
0.41%
8.32%
1.98%
Ratios
to
average
net
assets
f
Expenses
g
....................................
0.82%
0.81%
0.81%
0.81%
0.84%
Net
investment
income
...........................
2.90%
2.33%
2.42%
2.62%
2.96%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$166,355
$208,059
$169,677
$122,845
$63,400
Portfolio
turnover
rate
............................
26.78%
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
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
85
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.48
$11.84
$12.09
$11.46
$11.38
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.32
0.30
0.31
0.33
0.35
Net
realized
and
unrealized
gains
(losses)
...........
(1.21)
(0.36)
(0.26)
0.64
0.09
Total
from
investment
operations
....................
(0.89)
(0.06)
0.05
0.97
0.44
Less
distributions
from:
Net
investment
income
..........................
(0.32)
(0.30)
(0.30)
(0.34)
(0.36)
Net
asset
value,
end
of
year
.......................
$10.27
$11.48
$11.84
$12.09
$11.46
Total
return
d
...................................
(7.78)%
(0.60)%
0.48%
8.58%
3.90%
Ratios
to
average
net
assets
Expenses
e
....................................
0.67%
0.66%
0.66%
0.66%
0.69%
Net
investment
income
...........................
3.05%
2.49%
2.58%
2.77%
3.11%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$439,718
$588,698
$647,517
$708,399
$700,839
Portfolio
turnover
rate
............................
26.78%
21.64%
18.20%
14.83%
9.79%
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.
86
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.60
$11.97
$12.21
$11.58
$11.49
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.26
0.23
0.24
0.26
0.29
Net
realized
and
unrealized
gains
(losses)
...........
(1.23)
(0.37)
(0.24)
0.65
0.09
Total
from
investment
operations
....................
(0.97)
(0.14)
—
0.91
0.38
Less
distributions
from:
Net
investment
income
..........................
(0.26)
(0.23)
(0.24)
(0.28)
(0.29)
Net
asset
value,
end
of
year
.......................
$10.37
$11.60
$11.97
$12.21
$11.58
Total
return
d
...................................
(8.38)%
(1.23)%
0.01%
7.92%
3.37%
Ratios
to
average
net
assets
Expenses
e
....................................
1.22%
1.20%
1.21%
1.21%
1.24%
Net
investment
income
...........................
2.45%
1.91%
2.01%
2.22%
2.56%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$33,334
$52,654
$74,779
$104,721
$108,739
Portfolio
turnover
rate
............................
26.78%
21.64%
18.20%
14.83%
9.79%
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,
2023
2022
2021
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.49
$11.85
$12.10
$11.47
$11.38
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.34
0.31
0.32
0.34
0.37
Net
realized
and
unrealized
gains
(losses)
...........
(1.22)
(0.36)
(0.25)
0.65
0.09
Total
from
investment
operations
....................
(0.88)
(0.05)
0.07
0.99
0.46
Less
distributions
from:
Net
investment
income
..........................
(0.33)
(0.31)
(0.32)
(0.36)
(0.37)
Net
asset
value,
end
of
year
.......................
$10.28
$11.49
$11.85
$12.10
$11.47
Total
return
....................................
(7.65)%
(0.47)%
0.61%
8.71%
4.12%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.54%
0.53%
0.53%
0.54%
0.55%
Expenses
net
of
waiver
and
payments
by
affiliates
d
......
0.54%
e
0.52%
0.53%
e
0.53%
0.54%
Net
investment
income
...........................
3.17%
2.61%
2.70%
2.90%
3.26%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$20,620
$33,747
$30,329
$23,700
$18,929
Portfolio
turnover
rate
............................
26.78%
21.64%
18.20%
14.83%
9.79%
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
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
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.49
$11.85
$12.09
$11.47
$11.38
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.33
0.31
0.32
0.34
0.37
Net
realized
and
unrealized
gains
(losses)
...........
(1.22)
(0.36)
(0.24)
0.63
0.09
Total
from
investment
operations
....................
(0.89)
(0.05)
0.08
0.97
0.46
Less
distributions
from:
Net
investment
income
..........................
(0.33)
(0.31)
(0.32)
(0.35)
(0.37)
Net
asset
value,
end
of
year
.......................
$10.27
$11.49
$11.85
$12.09
$11.47
Total
return
....................................
(7.77)%
(0.50)%
0.66%
8.59%
4.09%
Ratios
to
average
net
assets
Expenses
d
....................................
0.57%
0.56%
0.56%
0.56%
0.59%
Net
investment
income
...........................
3.15%
2.59%
2.68%
2.87%
3.21%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$70,684
$86,643
$85,456
$82,970
$60,117
Portfolio
turnover
rate
............................
26.78%
21.64%
18.20%
14.83%
9.79%
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
Schedule
of
Investments,
February
28,
2023
Franklin
Missouri
Tax-Free
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
89
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
98.0%
California
0.1%
Santa
Barbara
Secondary
High
School
District
,
GO
,
2011
A
,
Zero
Cpn
.,
8/01/40
....
$
1,790,000
$
828,801
Delaware
0.1%
HTA
HRRB
Custodial
Trust
,
Revenue
,
2007
CC
,
5.25
%
,
7/01/33
................
1,000,000
1,012,017
Florida
0.7%
Capital
Trust
Agency,
Inc.
,
Kingdom
Development
West
Palm
Beach
Portfolio
Obligated
Group,
Revenue,
2021
A-1,
3.75%,
12/01/36
.............................................
5,544,000
4,616,336
a
SHI
-
Lake
Osborne
LLC,
Revenue,
144A,
2021
A-1,
3.68%,
1/01/57
...........
850,000
573,014
5,189,350
Georgia
0.4%
a
Development
Authority
of
Rockdale
County
,
AHPC
Terraces
at
Fieldstone
LLC
,
Revenue
,
144A,
2021
A-1
,
3.5
%
,
12/01/36
...............................
3,250,000
2,606,834
Missouri
88.9%
Affton
School
District
No.
101
,
GO,
2017
A,
Refunding,
5%,
3/01/32
...................................
1,500,000
1,618,896
GO,
2017
A,
Refunding,
5%,
3/01/33
...................................
1,595,000
1,720,403
GO,
2017
A,
Refunding,
5%,
3/01/34
...................................
1,700,000
1,829,580
GO,
2017
A,
Refunding,
5%,
3/01/35
...................................
1,810,000
1,939,795
GO,
2017
A,
Refunding,
5%,
3/01/36
...................................
1,920,000
2,046,583
Bi-State
Development
Agency
of
the
Missouri-Illinois
Metropolitan
District
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
10/01/44
......................................
6,000,000
5,592,465
Cape
Girardeau
County
Industrial
Development
Authority
,
Procter
&
Gamble
Co.
(The),
Revenue,
1998,
5.3%,
5/15/28
..................
6,875,000
6,888,517
SoutheastHEALTH
Obligated
Group,
Revenue,
2021,
4%,
3/01/41
.............
3,010,000
2,600,650
SoutheastHEALTH
Obligated
Group,
Revenue,
2021,
3%,
3/01/46
.............
3,000,000
2,003,536
SoutheastHEALTH
Obligated
Group,
Revenue,
2021,
4%,
3/01/46
.............
8,730,000
7,332,000
St.
Francis
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
6/01/39
..........
7,110,000
7,227,887
Cape
Girardeau
County
School
District
No.
R-2
,
GO
,
2018
,
5
%
,
3/01/38
..........
2,195,000
2,376,066
City
of
Bridgeton
,
Sales
Tax,
Revenue,
2021
A,
Refunding,
2%,
12/01/32
......................
500,000
411,754
Sales
Tax,
Revenue,
2021
A,
Refunding,
2.125%,
12/01/33
..................
1,170,000
959,474
City
of
Kansas
City
,
Sanitary
Sewer
System,
Revenue,
2018
A,
4%,
1/01/35
.....................
1,500,000
1,535,540
Sanitary
Sewer
System,
Revenue,
2023
A,
4%,
1/01/48
.....................
5,000,000
4,623,210
Water,
Revenue,
2017
A,
4%,
12/01/41
.................................
4,970,000
4,906,945
Water,
Revenue,
2023
A,
4%,
12/01/47
.................................
2,120,000
1,993,588
City
of
Marshfield
,
Waterworks
&
Sewer
System
,
Revenue
,
2020
B
,
AGMC
Insured
,
5
%
,
2/01/47
......................................................
1,775,000
1,858,462
City
of
Peculiar
,
Water
&
Sewer
,
Revenue
,
2017
,
AGMC
Insured
,
4
%
,
6/01/42
......
2,405,000
2,389,258
City
of
Republic
,
Revenue
,
2022
,
3
%
,
5/01/47
..............................
5,000,000
3,660,976
City
of
St.
Charles
,
COP,
2020
B,
Refunding,
3%,
2/01/38
..................................
1,200,000
1,036,668
COP,
2020
B,
Refunding,
3%,
2/01/39
..................................
1,500,000
1,279,508
City
of
St.
Louis
,
Airport,
Revenue,
2005,
Refunding,
NATL
Insured,
5.5%,
7/01/29
..............
13,070,000
14,912,998
Airport,
Revenue,
2017
A,
Refunding,
AGMC
Insured,
5%,
7/01/25
.............
5,000,000
5,202,647
Airport,
Revenue,
2017
C,
Refunding,
AGMC
Insured,
5%,
7/01/47
.............
3,170,000
3,272,144
Airport,
Revenue,
2017
D,
Refunding,
AGMC
Insured,
5%,
7/01/35
.............
1,000,000
1,038,566
Airport,
Revenue,
2017
D,
Refunding,
AGMC
Insured,
5%,
7/01/36
.............
2,125,000
2,195,608
Airport,
Revenue,
2019
A,
5%,
7/01/49
..................................
2,500,000
2,595,717
Airport,
Revenue,
2019
C,
Refunding,
5%,
7/01/27
.........................
1,705,000
1,837,528
Clay
County
Reorganized
School
District
No.
R-1
,
GO,
2017,
3%,
3/01/36
.............................................
1,540,000
1,394,791
GO,
2017,
3.125%,
3/01/37
..........................................
1,855,000
1,664,466
Franklin
Tax-Free
Trust
Schedule
of
Investments
Franklin
Missouri
Tax-Free
Income
Fund
(continued)
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
(continued)
Missouri
(continued)
Community
College
District
of
Central
Southwest
Missouri
,
COP,
2021,
3%,
3/01/40
.............................................
$
575,000
$
476,885
COP,
2021,
3%,
3/01/41
.............................................
400,000
325,943
Ferguson
Reorganized
School
District
No.
R-2
,
GO,
2018,
4%,
5/01/32
.............................................
1,000,000
1,023,513
GO,
2018,
5%,
5/01/38
.............................................
2,250,000
2,393,917
Hannibal
Board
of
Public
Works
,
COP,
2022,
3.625%,
4/01/44
.........................................
1,000,000
831,011
COP,
2022,
3.75%,
4/01/47
..........................................
1,000,000
835,071
Health
&
Educational
Facilities
Authority
of
the
State
of
Missouri
,
Bethesda
Health
Group,
Inc.
Obligated
Group,
Revenue,
2015,
5%,
8/01/40
......
1,650,000
1,590,453
Bethesda
Health
Group,
Inc.
Obligated
Group,
Revenue,
2015,
5%,
8/01/45
......
1,300,000
1,207,303
BJC
Healthcare
Obligated
Group,
Revenue,
2021
A,
Refunding,
3%,
7/01/51
.....
13,000,000
9,386,463
CoxHealth
Obligated
Group,
Revenue,
2013
A,
5%,
11/15/38
.................
11,680,000
11,516,002
CoxHealth
Obligated
Group,
Revenue,
2013
A,
5%,
11/15/44
.................
2,760,000
2,695,256
CoxHealth
Obligated
Group,
Revenue,
2015
A,
Refunding,
5%,
11/15/34
........
3,200,000
3,284,688
CoxHealth
Obligated
Group,
Revenue,
2015
A,
Refunding,
5%,
11/15/39
........
6,690,000
6,762,973
CoxHealth
Obligated
Group,
Revenue,
2019
A,
4%,
11/15/44
.................
5,000,000
4,755,095
Kansas
City
University,
Revenue,
2017
A,
5%,
6/01/42
......................
2,800,000
2,981,470
Kansas
City
University,
Revenue,
2017
A,
5%,
6/01/47
......................
4,875,000
5,167,456
Lake
Regional
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
3%,
2/15/40
........................................................
2,060,000
1,510,260
Lake
Regional
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
3%,
2/15/41
........................................................
2,120,000
1,531,145
Lake
Regional
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
3%,
2/15/46
........................................................
5,590,000
3,740,619
Lutheran
Senior
Services
Obligated
Group,
Revenue,
2016
A,
5%,
2/01/46
.......
4,000,000
3,682,448
Lutheran
Senior
Services
Obligated
Group,
Revenue,
2016
B,
Refunding,
5%,
2/01/46
........................................................
11,575,000
10,656,083
Lutheran
Senior
Services
Obligated
Group,
Revenue,
2019
A,
5%,
2/01/34
.......
2,000,000
1,973,459
Lutheran
Senior
Services
Obligated
Group,
Revenue,
2019
A,
5%,
2/01/42
.......
1,750,000
1,640,017
Lutheran
Senior
Services
Obligated
Group,
Revenue,
2019
C,
Refunding,
4%,
2/01/33
........................................................
1,730,000
1,564,449
Lutheran
Senior
Services
Obligated
Group,
Revenue,
2019
C,
Refunding,
4%,
2/01/48
........................................................
485,000
372,795
Lutheran
Senior
Services
Obligated
Group,
Revenue,
2021,
4%,
2/01/30
........
2,035,000
1,911,526
Lutheran
Senior
Services
Obligated
Group,
Revenue,
2021,
4%,
2/01/42
........
9,900,000
7,976,713
Maryville
University
of
St.
Louis,
Revenue,
2015,
5%,
6/15/44
.................
5,000,000
5,008,107
Maryville
University
of
St.
Louis,
Revenue,
2019
A,
5%,
6/15/45
...............
4,000,000
4,010,102
Maryville
University
of
St.
Louis,
Revenue,
2020
A,
Refunding,
4%,
6/15/34
......
4,345,000
4,196,166
Maryville
University
of
St.
Louis,
Revenue,
2020
A,
Refunding,
4%,
6/15/38
......
4,885,000
4,449,696
Maryville
University
of
St.
Louis,
Revenue,
2022
A,
Refunding,
3.125%,
6/15/38
...
2,300,000
1,836,316
Maryville
University
of
St.
Louis,
Revenue,
2022
A,
Refunding,
3.375%,
6/15/45
...
1,000,000
743,778
Mercy
Health,
Revenue,
2012,
4%,
11/15/42
.............................
8,000,000
7,592,050
Mercy
Health,
Revenue,
2014
F,
5%,
11/15/45
............................
25,000,000
25,222,352
Mercy
Health,
Revenue,
2015
B,
Refunding,
5%,
2/01/45
....................
6,870,000
6,960,371
Mercy
Health,
Revenue,
2017
C,
Refunding,
5%,
11/15/42
...................
9,720,000
9,969,296
Mercy
Health,
Revenue,
2017
C,
Refunding,
4%,
11/15/47
...................
10,000,000
9,290,322
Mercy
Health,
Revenue,
2020,
4%,
6/01/53
..............................
2,000,000
1,802,276
Mosaic
Health
System
Obligated
Group,
Revenue,
2019
A,
Refunding,
4%,
2/15/54
4,000,000
3,636,193
SSM
Health
Care
Obligated
Group,
Revenue,
2018
A,
5%,
6/01/48
............
13,500,000
13,762,645
St.
Louis
University,
Revenue,
2015
A,
5%,
10/01/38
.......................
10,000,000
10,371,390
St.
Louis
University,
Revenue,
2017
A,
5%,
10/01/42
.......................
9,200,000
9,656,356
St.
Louis
University,
Revenue,
2017
A,
5%,
10/01/47
.......................
5,800,000
6,061,193
St.
Louis
University,
Revenue,
2019
A,
5%,
10/01/46
.......................
5,775,000
6,146,694
St.
Luke's
Health
System
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
11/15/35
3,950,000
4,083,566
Franklin
Tax-Free
Trust
Schedule
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)
Health
&
Educational
Facilities
Authority
of
the
State
of
Missouri,
(continued)
St.
Luke's
Health
System
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
11/15/43
.......................................................
$
2,000,000
$
2,052,916
St.
Luke's
Health
System
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/15/50
2,500,000
2,218,312
University
of
Central
Missouri,
Revenue,
2013
C-2,
5%,
10/01/34
..............
5,000,000
5,023,551
Howard
Bend
Levee
District
,
Special
Tax,
2021,
2.75%,
3/01/31
.....................................
400,000
341,031
Special
Tax,
2021,
3%,
3/01/36
.......................................
500,000
403,179
Special
Tax,
2021,
3.125%,
3/01/41
....................................
1,000,000
761,040
Special
Tax,
2022,
3.375%,
3/01/32
....................................
75,000
65,782
Special
Tax,
2022,
3.5%,
3/01/37
......................................
175,000
145,676
Special
Tax,
2022,
3.625%,
3/01/42
....................................
200,000
159,064
Jackson
County
School
District
No.
R-IV
Blue
Springs
,
GO,
2018
A,
5.5%,
3/01/36
...........................................
3,000,000
3,374,053
GO,
2018
A,
5.5%,
3/01/37
...........................................
2,000,000
2,234,259
Jefferson
City
School
District
,
GO
,
2018
,
5
%
,
3/01/38
........................
2,070,000
2,184,049
Jefferson
County
School
District
No.
R-VI
,
Festus,
COP,
2021
B,
4%,
4/01/40
.....................................
575,000
556,455
Festus,
COP,
2021
B,
4%,
4/01/41
.....................................
500,000
482,660
Festus,
COP,
2021
B,
3%,
4/01/42
.....................................
500,000
392,129
Festus,
COP,
2021
B,
3%,
4/01/44
.....................................
1,500,000
1,149,680
Festus,
COP,
2021
B,
2.375%,
4/01/46
..................................
2,000,000
1,346,330
Joplin
Industrial
Development
Authority
,
Freeman
Health
System
Obligated
Group
,
Revenue
,
2015
,
Refunding
,
5
%
,
2/15/35
.................................
4,000,000
4,041,618
Kansas
City
Industrial
Development
Authority
,
Revenue,
2011
A,
Refunding,
5.5%,
9/01/29
..............................
5,000,000
5,009,595
Revenue,
2011
A,
Refunding,
5.5%,
9/01/30
..............................
12,000,000
12,023,621
Revenue,
2011
A,
Refunding,
5%,
9/01/32
...............................
3,000,000
3,005,011
City
of
Kansas
City
Airport,
Revenue,
2019
B,
5%,
3/01/46
...................
9,000,000
9,151,999
City
of
Kansas
City
Airport,
Revenue,
2019
B,
AGMC
Insured,
5%,
3/01/49
.......
3,000,000
3,054,150
City
of
Kansas
City
Airport,
Revenue,
2019
B,
5%,
3/01/54
...................
31,770,000
32,116,140
City
of
Kansas
City
Airport,
Revenue,
2020
A,
AGMC
Insured,
4%,
3/01/57
.......
10,900,000
9,714,665
City
of
Kansas
City
Airport,
Revenue,
2020
A,
AGMC
Insured,
5%,
3/01/57
.......
100,000
101,898
Liberty
Public
School
District
No.
53
,
GO
,
2018
,
4
%
,
3/01/37
...................
4,500,000
4,515,913
Metropolitan
St.
Louis
Sewer
District
,
Revenue,
2016
C,
Refunding,
5%,
5/01/46
...............................
24,700,000
25,700,560
Revenue,
2017
A,
Refunding,
5%,
5/01/47
...............................
15,000,000
15,758,736
Missouri
Development
Finance
Board
,
City
of
Independence,
Revenue,
2021,
Refunding,
5%,
3/01/30
...............
930,000
973,351
City
of
Independence,
Revenue,
2021,
Refunding,
4%,
3/01/36
...............
1,140,000
1,076,990
City
of
Independence,
Revenue,
2021,
Refunding,
4%,
3/01/37
...............
500,000
462,492
City
of
Independence,
Revenue,
2021,
Refunding,
4%,
3/01/41
...............
515,000
457,313
City
of
Independence,
Revenue,
2021,
Refunding,
3%,
3/01/46
...............
2,640,000
1,831,226
City
of
Independence,
Revenue,
2021,
Refunding,
4%,
3/01/51
...............
9,445,000
7,879,580
Procter
&
Gamble
Co.
(The),
Revenue,
1999,
5.2%,
3/15/29
..................
3,000,000
3,346,300
Zoological
Subdistrict
of
the
Metropolitan
Zoo
Park
&
Museum
District
of
St.
Louis,
Revenue,
2022,
5.25%,
5/01/55
.....................................
2,500,000
2,678,400
Missouri
Housing
Development
Commission
,
Revenue,
2018
B,
GNMA
Insured,
4%,
11/01/38
...........................
820,000
807,287
Revenue,
2019
C,
GNMA
Insured,
3%,
11/01/44
...........................
3,045,000
2,849,499
Revenue,
2020
C,
GNMA
Insured,
2.4%,
11/01/45
.........................
2,010,000
1,469,731
Revenue,
2020
D,
GNMA
Insured,
2.55%,
11/01/50
........................
2,715,000
2,045,058
Revenue,
2021
B,
GNMA
Insured,
2.2%,
11/01/46
.........................
1,160,000
824,420
Revenue,
2021
B,
GNMA
Insured,
2.3%,
11/01/51
.........................
7,220,000
5,145,556
Revenue,
2022
A,
GNMA
Insured,
3%,
11/01/37
...........................
1,295,000
1,136,439
Revenue,
2022
A,
GNMA
Insured,
3.125%,
11/01/42
.......................
3,425,000
2,834,694
Revenue,
2022
C,
GNMA
Insured,
4.3%,
11/01/47
.........................
2,000,000
1,935,623
Franklin
Tax-Free
Trust
Schedule
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)
Missouri
Housing
Development
Commission,
(continued)
Revenue,
2022
C,
GNMA
Insured,
4.35%,
11/01/52
........................
$
2,500,000
$
2,401,594
Missouri
Joint
Municipal
Electric
Utility
Commission
,
Iatan
2
Project,
Revenue,
2015
A,
Refunding,
5%,
12/01/35
..................
7,335,000
7,487,099
MoPEP
1
Pool
Fund,
Revenue,
2018,
5%,
12/01/43
........................
2,000,000
2,056,528
Plum
Point
Project,
Revenue,
2014
A,
Refunding,
5%,
1/01/33
................
7,500,000
7,632,265
Prairie
State
Project,
Revenue,
2016
A,
Refunding,
5%,
12/01/40
..............
27,950,000
28,541,008
Monarch-Chesterfield
Levee
District
,
Special
Tax
,
2015
,
Refunding
,
5
%
,
3/01/40
....
4,395,000
4,459,418
Move
Rolla
Transportation
Development
District
,
Revenue
,
2017
,
4.75
%
,
6/01/47
...
5,000,000
4,602,758
Normandy
Schools
Collaborative
,
GO,
2021
B,
2%,
3/01/40
............................................
2,050,000
1,420,798
GO,
2021
B,
2%,
3/01/41
............................................
1,700,000
1,161,488
Poplar
Bluff
Regional
Transportation
Development
District
,
Sales
Tax,
Revenue,
2023
B,
Refunding,
3.375%,
12/01/31
..................
2,000,000
1,923,416
Sales
Tax,
Revenue,
2023
B,
Refunding,
4%,
12/01/37
......................
2,600,000
2,516,528
Riverside-
Quindaro
Bend
Levee
District
of
Platte
County
,
Special
Assessment
,
2017
,
Refunding
,
5
%
,
3/01/29
.............................................
2,585,000
2,661,821
Southeast
Missouri
State
University
,
Revenue,
2020,
Refunding,
4%,
4/01/40
.................................
5,075,000
4,725,837
Revenue,
2020,
Refunding,
4%,
4/01/43
.................................
2,580,000
2,373,448
Springfield
School
District
No.
R-12
,
GO
,
2013
,
Refunding
,
5
%
,
3/01/33
..........
1,000,000
1,000,000
St.
Charles
County
Public
Water
Supply
District
No.
2
,
COP
,
2022
,
4
%
,
12/01/44
....
5,000,000
4,843,729
St.
Charles
County
School
District
No.
R-IV
Wentzville
,
GO
,
2018
,
Refunding
,
4
%
,
3/01/38
.........................................................
15,400,000
15,507,192
St.
Louis
County
Industrial
Development
Authority
,
Friendship
Village
St.
Louis
Obligated
Group,
Revenue,
2013
A,
5.875%,
9/01/43
..
7,000,000
7,012,674
Friendship
Village
St.
Louis
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
9/01/48
........................................................
7,095,000
6,166,097
St.
Louis
Land
Clearance
for
Redevelopment
Authority
,
Revenue,
2021,
2.125%,
7/15/39
......................................
3,680,000
2,558,015
Revenue,
2021,
2.25%,
7/15/41
.......................................
3,845,000
2,637,141
Revenue,
2021
A,
Refunding,
2.125%,
4/01/39
............................
6,705,000
4,667,487
City
of
St.
Louis,
Revenue,
2022
C,
5%,
6/01/36
...........................
2,025,000
2,101,614
City
of
St.
Louis,
Revenue,
2022
C,
5%,
6/01/41
...........................
2,000,000
2,024,432
City
of
St.
Louis,
Revenue,
2022
C,
5.125%,
6/01/46
.......................
2,600,000
2,634,525
St.
Louis
Municipal
Finance
Corp.
,
City
of
St.
Louis,
Revenue,
2020,
AGMC
Insured,
5%,
10/01/45
...............
3,685,000
3,872,680
City
of
St.
Louis,
Revenue,
2020,
AGMC
Insured,
5%,
10/01/49
...............
4,175,000
4,350,797
St.
Louis
Municipal
Library
District
,
COP
,
2020
,
Refunding
,
BAM
Insured
,
4
%
,
3/15/48
2,800,000
2,567,708
Washington
Industrial
Development
Authority
,
Revenue
,
2021
,
Refunding
,
2.5
%
,
11/01/29
........................................................
390,000
353,745
649,637,981
Oregon
0.2%
a
State
of
Oregon
Housing
&
Community
Services
Department
,
Union
at
Pacific
Highway
LP
,
Revenue
,
144A,
2022
II-1
,
5.5
%
,
12/01/39
............................
1,400,000
1,396,834
South
Carolina
0.7%
South
Carolina
Jobs-Economic
Development
Authority
,
a
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
1,900,000
1,521,158
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
1,900,000
1,516,496
a
Columbia
Portfolio
Obligated
Group,
Revenue,
144A,
2022
A-2,
Zero
Cpn
.,
6/01/52
3,200,000
2,004,151
5,041,805
Franklin
Tax-Free
Trust
Schedule
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)
Texas
1.0%
City
of
Dallas
,
DHFC
-
Briscoe
Apartments
LLC
(The)
,
Revenue,
Senior
Lien
,
2022
A
,
6
%
,
12/01/62
.....................................................
$
2,000,000
$
2,055,878
a
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
2,500,000
1,854,348
Lake
Houston
Redevelopment
Authority
,
City
of
Houston
Reinvestment
Zone
No.
10,
Revenue,
2021,
Refunding,
2.5%,
9/01/41
........................................................
525,000
356,063
City
of
Houston
Reinvestment
Zone
No.
10,
Revenue,
2021,
Refunding,
3%,
9/01/44
700,000
502,027
a
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
A-2
,
5
%
,
12/01/52
............
3,200,000
2,341,108
7,109,424
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
1,521,224
Wisconsin
1.6%
a
Public
Finance
Authority
,
Revenue,
144A,
2022,
B-1,
4%,
12/28/44
................................
1,900,000
1,505,473
AL-FL
Portfolio
Obligated
Group,
Revenue,
144A,
2021
A,
3.4%,
12/01/36
.......
3,250,000
2,602,906
FAH
Tree
House
LLC,
Revenue,
144A,
2023
A,
6.5%,
8/01/53
................
1,500,000
1,495,941
Gulf
Coast
Portfolio
Obligated
Group,
Revenue,
144A,
2021,
5.25%,
12/01/23
....
4,900,000
4,900,000
Pine
Forest
2022
Obligated
Group,
Revenue,
144A,
2022
A,
6.5%,
12/01/52
.....
1,500,000
1,484,224
11,988,544
U.S.
Territories
4.1%
Guam
0.8%
Guam
Government
Waterworks
Authority
,
Revenue
,
2020
A
,
5
%
,
1/01/50
.........
5,790,000
5,811,981
Puerto
Rico
3.3%
HTA
HRRB
Custodial
Trust
,
Revenue
,
2007
CC
,
5.25
%
,
7/01/36
................
6,200,000
6,255,220
HTA
TRRB
Custodial
Trust
,
Revenue,
2005
L,
5.25%,
7/01/41
.....................................
5,205,000
5,262,190
Revenue,
2007
N,
5.25%,
7/01/36
.....................................
500,000
504,453
Puerto
Rico
Electric
Power
Authority
,
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/32
....................
1,750,000
1,754,540
b
Revenue,
WW,
5.5%,
7/01/38
.........................................
4,690,000
3,318,175
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue,
2022
A,
5%,
7/01/62
........................................
165,992
153,958
Revenue,
2022
B,
Zero
Cpn
.,
7/01/32
...................................
107,872
67,420
Revenue,
2022
C,
Zero
Cpn
.,
7/01/53
..................................
184,525
102,443
Puerto
Rico
Sales
Tax
Financing
Corp.
,
Sales
Tax,
Revenue,
A-1,
4.75%,
7/01/53
................................
1,404,000
1,258,520
Sales
Tax,
Revenue,
A-1,
5%,
7/01/58
..................................
6,000,000
5,566,800
24,243,719
Total
U.S.
Territories
....................................................................
30,055,700
Total
Municipal
Bonds
(Cost
$768,360,043)
.....................................
716,388,514
a
a
a
a
Franklin
Tax-Free
Trust
Schedule
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
Short
Term
Investments
0.0%
†
a
a
Principal
Amount
a
Value
Municipal
Bonds
0.0%
†
Missouri
0.0%
†
c
Health
&
Educational
Facilities
Authority
of
the
State
of
Missouri
,
Washington
University
(The)
,
Revenue
,
2000
B
,
SPA
JPMorgan
Chase
Bank
NA
,
Daily
VRDN
and
Put
,
2.45
%
,
3/01/40
...................................................
$
300,000
$
300,000
Total
Municipal
Bonds
(Cost
$300,000)
.........................................
300,000
Total
Short
Term
Investments
(Cost
$300,000
)
..................................
300,000
a
Total
Investments
(Cost
$768,660,043)
98.0%
...................................
$716,688,514
Other
Assets,
less
Liabilities
2.0%
.............................................
14,023,784
Net
Assets
100.0%
...........................................................
$730,712,298
See
Abbreviations
on
page
148
.
†
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,
2023,
the
aggregate
value
of
these
securities
was
$25,807,215,
representing
3.5%
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
North
Carolina
Tax-Free
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
95
a
Year
Ended
February
28,
Year
Ended
February
28,
2019
b
2023
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.31
$11.62
$11.84
$11.30
$11.26
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.24
0.21
0.27
0.28
0.15
Net
realized
and
unrealized
gains
(losses)
...........
(1.07)
(0.31)
(0.23)
0.56
0.04
Total
from
investment
operations
....................
(0.83)
(0.10)
0.04
0.84
0.19
Less
distributions
from:
Net
investment
income
..........................
(0.23)
(0.21)
(0.26)
(0.30)
(0.15)
Net
asset
value,
end
of
year
.......................
$10.25
$11.31
$11.62
$11.84
$11.30
Total
return
e
...................................
(7.31)%
(0.89)%
0.38%
7.50%
1.77%
Ratios
to
average
net
assets
f
Expenses
g
....................................
0.84%
0.82%
0.81%
0.82%
0.83%
Net
investment
income
...........................
2.26%
1.81%
2.27%
2.48%
2.86%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$133,789
$167,474
$145,847
$101,981
$49,192
Portfolio
turnover
rate
............................
16.87%
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
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
96
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.31
$11.62
$11.84
$11.30
$11.28
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.25
0.23
0.29
0.30
0.34
Net
realized
and
unrealized
gains
(losses)
...........
(1.06)
(0.31)
(0.23)
0.56
0.03
Total
from
investment
operations
....................
(0.81)
(0.08)
0.06
0.86
0.37
Less
distributions
from:
Net
investment
income
..........................
(0.25)
(0.23)
(0.28)
(0.32)
(0.35)
Net
asset
value,
end
of
year
.......................
$10.25
$11.31
$11.62
$11.84
$11.30
Total
return
d
...................................
(7.17)%
(0.65)%
0.44%
7.66%
3.32%
Ratios
to
average
net
assets
Expenses
e
....................................
0.69%
0.67%
0.67%
0.67%
0.68%
Net
investment
income
...........................
2.41%
1.97%
2.44%
2.63%
3.01%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$339,756
$462,916
$521,406
$567,825
$577,052
Portfolio
turnover
rate
............................
16.87%
23.40%
15.09%
15.22%
11.61%
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
97
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.49
$11.81
$12.04
$11.49
$11.46
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.19
0.17
0.22
0.24
0.28
Net
realized
and
unrealized
gains
(losses)
...........
(1.07)
(0.33)
(0.23)
0.56
0.03
Total
from
investment
operations
....................
(0.88)
(0.16)
(0.01)
0.80
0.31
Less
distributions
from:
Net
investment
income
..........................
(0.19)
(0.16)
(0.22)
(0.25)
(0.28)
Net
asset
value,
end
of
year
.......................
$10.42
$11.49
$11.81
$12.04
$11.49
Total
return
d
...................................
(7.66)%
(1.36)%
(0.11)%
7.07%
2.78%
Ratios
to
average
net
assets
Expenses
e
....................................
1.23%
1.21%
1.21%
1.22%
1.23%
Net
investment
income
...........................
1.81%
1.40%
1.87%
2.08%
2.46%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$27,303
$42,794
$63,485
$90,244
$105,371
Portfolio
turnover
rate
............................
16.87%
23.40%
15.09%
15.22%
11.61%
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
In
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.30
$11.61
$11.84
$11.29
$11.27
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.27
0.25
0.30
0.32
0.35
Net
realized
and
unrealized
gains
(losses)
...........
(1.07)
(0.31)
(0.23)
0.56
0.03
Total
from
investment
operations
....................
(0.80)
(0.06)
0.07
0.88
0.38
Less
distributions
from:
Net
investment
income
..........................
(0.26)
(0.25)
(0.30)
(0.33)
(0.36)
Net
asset
value,
end
of
year
.......................
$10.24
$11.30
$11.61
$11.84
$11.29
Total
return
....................................
(7.05)%
(0.60)%
0.57%
7.90%
3.45%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.56%
0.54%
0.54%
0.55%
0.56%
Expenses
net
of
waiver
and
payments
by
affiliates
d
......
0.55%
0.53%
0.53%
0.54%
0.54%
Net
investment
income
...........................
2.56%
2.10%
2.56%
2.76%
3.15%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$20,233
$23,000
$17,426
$10,948
$7,776
Portfolio
turnover
rate
............................
16.87%
23.40%
15.09%
15.22%
11.61%
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
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
99
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.31
$11.62
$11.84
$11.30
$11.28
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.26
0.24
0.30
0.31
0.35
Net
realized
and
unrealized
gains
(losses)
...........
(1.06)
(0.31)
(0.23)
0.56
0.03
Total
from
investment
operations
....................
(0.80)
(0.07)
0.07
0.87
0.38
Less
distributions
from:
Net
investment
income
..........................
(0.26)
(0.24)
(0.29)
(0.33)
(0.36)
Net
asset
value,
end
of
year
.......................
$10.25
$11.31
$11.62
$11.84
$11.30
Total
return
....................................
(7.08)%
(0.64)%
0.63%
7.77%
3.42%
Ratios
to
average
net
assets
Expenses
d
....................................
0.59%
0.57%
0.57%
0.57%
0.58%
Net
investment
income
...........................
2.52%
2.06%
2.53%
2.73%
3.11%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$115,439
$132,919
$121,041
$105,851
$84,506
Portfolio
turnover
rate
............................
16.87%
23.40%
15.09%
15.22%
11.61%
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
Schedule
of
Investments,
February
28,
2023
Franklin
North
Carolina
Tax-Free
Income
Fund
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
Corporate
Bonds
0.3%
Software
0.3%
a
Haven
at
Elgin
LLC
,
5.25
%
,
12/31/53
....................................
$
1,600,000
$
1,571,719
Total
Corporate
Bonds
(Cost
$1,600,000)
.......................................
1,571,719
Municipal
Bonds
98.3%
California
0.3%
California
Municipal
Finance
Authority
,
Revenue
,
2022
A-1
,
4.25
%
,
12/01/37
.......
2,300,000
1,915,479
Florida
1.3%
Capital
Trust
Agency,
Inc.
,
Kingdom
Development
West
Palm
Beach
Portfolio
Obligated
Group,
Revenue,
2021
A-1,
3.75%,
12/01/36
.............................................
4,680,000
3,896,907
b
SHI
-
Lake
Osborne
LLC,
Revenue,
144A,
2021
A-1,
3.68%,
1/01/57
...........
1,500,000
1,011,201
b
Leon
County
Housing
Finance
Authority
,
Revenue
,
144A,
2022
A
,
Zero
Cpn.,
5/01/57
3,750,000
3,046,875
7,954,983
Illinois
0.6%
Metropolitan
Pier
&
Exposition
Authority
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
6/15/50
..
500,000
488,319
State
of
Illinois
,
GO,
2016,
5%,
11/01/34
.............................................
1,100,000
1,129,025
GO,
2021
A,
5%,
3/01/33
............................................
2,000,000
2,120,221
3,737,565
Kentucky
0.6%
b
Louisville/Jefferson
County
Metropolitan
Government
,
PSG
Vesta
Derby
Oaks
LLC
,
Revenue
,
144A,
Zero
Cpn.,
5/01/52
....................................
5,600,000
3,662,448
New
Jersey
1.0%
New
Jersey
Economic
Development
Authority
,
Revenue
,
2021
QQQ
,
4
%
,
6/15/41
...
1,000,000
941,072
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue,
2019
BB,
5%,
6/15/44
.......................................
2,900,000
2,977,310
Revenue,
2020
AA,
4%,
6/15/45
.......................................
1,000,000
916,944
Revenue,
2020
AA,
3%,
6/15/50
.......................................
500,000
354,992
Revenue,
2020
AA,
5%,
6/15/50
.......................................
1,290,000
1,329,617
6,519,935
New
York
1.4%
Metropolitan
Transportation
Authority
,
Revenue,
2020
E,
Refunding,
4%,
11/15/45
..............................
1,595,000
1,395,591
Revenue,
2021
A-1,
4%,
11/15/48
.....................................
5,325,000
4,577,504
Revenue,
2021
A-2,
4%,
11/15/41
.....................................
3,000,000
2,708,827
8,681,922
North
Carolina
86.5%
Cape
Fear
Public
Utility
Authority
,
Revenue
,
2019
A
,
Refunding
,
4
%
,
8/01/44
.......
7,570,000
7,398,489
Charlotte-Mecklenburg
Hospital
Authority
(The)
,
Atrium
Health
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
1/15/40
.......
20,000,000
20,489,630
Atrium
Health
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
1/15/36
.......
5,000,000
5,350,753
Atrium
Health
Obligated
Group,
Revenue,
2022
A,
Refunding,
4%,
1/15/43
.......
2,000,000
1,921,934
City
of
Charlotte
,
COP,
2019
A,
Refunding,
5%,
6/01/44
..................................
8,250,000
8,814,087
Airport,
Revenue,
2019
A,
4%,
7/01/44
..................................
3,550,000
3,363,750
Airport,
Revenue,
2019
A,
5%,
7/01/49
..................................
4,460,000
4,696,411
Airport,
Revenue,
2019
B,
4%,
7/01/44
..................................
5,515,000
5,138,638
Airport,
Revenue,
2021
A,
Refunding,
4%,
7/01/36
.........................
1,790,000
1,822,681
Airport,
Revenue,
2021
A,
Refunding,
4%,
7/01/39
.........................
8,000,000
7,948,659
Airport,
Revenue,
2021
A,
Refunding,
4%,
7/01/41
.........................
4,610,000
4,471,356
Storm
Water,
Revenue,
2014,
Refunding,
5%,
12/01/39
.....................
7,970,000
8,204,139
Franklin
Tax-Free
Trust
Schedule
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
101
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
North
Carolina
(continued)
City
of
Charlotte,
(continued)
Water
&
Sewer
System,
Revenue,
2015,
Refunding,
5%,
7/01/40
..............
$
10,000,000
$
10,372,115
Water
&
Sewer
System,
Revenue,
2018,
Refunding,
4%,
7/01/37
..............
5,000,000
5,047,659
Water
&
Sewer
System,
Revenue,
2020,
Refunding,
2%,
7/01/41
..............
500,000
337,248
City
of
Fayetteville
,
Public
Works
Commission
,
Revenue
,
2018
,
Refunding
,
4
%
,
3/01/41
4,015,000
3,945,552
City
of
Greensboro
,
Combined
Water
&
Sewer
System
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
6/01/45
......................................................
4,500,000
4,397,369
City
of
Raleigh
,
Combined
Enterprise
System,
Revenue,
2016
A,
4%,
3/01/46
.................
5,000,000
4,879,546
Combined
Enterprise
System,
Revenue,
2016
B,
Refunding,
4%,
3/01/34
........
1,000,000
1,029,271
City
of
Salisbury
,
Combined
Enterprise
System
,
Revenue
,
2020
,
Refunding
,
5
%
,
2/01/45
.........................................................
1,000,000
1,072,470
City
of
Winston-Salem
,
Water
&
Sewer
System,
Revenue,
2016
A,
Refunding,
4%,
6/01/34
............
1,350,000
1,381,218
Water
&
Sewer
System,
Revenue,
2016
A,
Refunding,
4%,
6/01/37
............
5,000,000
5,030,843
Water
&
Sewer
System,
Revenue,
2017,
4%,
6/01/47
.......................
10,000,000
9,686,135
County
of
Brunswick
,
GO
,
2022
,
4
%
,
8/01/39
..............................
1,550,000
1,555,548
County
of
Buncombe
,
Revenue
,
2015
,
Refunding
,
5
%
,
6/01/34
.................
3,000,000
3,133,129
County
of
Dare
,
Revenue,
2021
A,
3%,
6/01/38
........................................
375,000
320,065
Revenue,
2021
A,
3%,
6/01/39
........................................
585,000
490,690
Revenue,
2021
A,
3%,
6/01/40
........................................
250,000
206,050
Revenue,
2021
A,
3%,
6/01/41
........................................
450,000
362,585
County
of
Durham
,
GO,
2019,
4%,
6/01/36
.............................................
500,000
510,969
GO,
2019,
4%,
6/01/37
.............................................
450,000
455,073
GO,
2019,
4%,
6/01/39
.............................................
700,000
701,743
GO,
2021,
Refunding,
5%,
6/01/31
.....................................
750,000
884,503
GO,
2021,
Refunding,
5%,
6/01/32
.....................................
625,000
736,175
County
of
Guilford
,
GO
,
2017
B
,
4
%
,
5/01/33
...............................
5,000,000
5,161,971
County
of
Lincoln
,
Enterprise
System,
Revenue,
2020,
Refunding,
3%,
8/01/38
..................
400,000
340,541
Enterprise
System,
Revenue,
2020,
Refunding,
3%,
8/01/41
..................
480,000
386,332
County
of
Mecklenburg
,
GO
,
2017
A
,
4
%
,
4/01/30
...........................
5,000,000
5,235,060
County
of
New
Hanover
,
GO,
2021
A,
Refunding,
4%,
8/01/29
...................................
760,000
820,939
GO,
2021
A,
Refunding,
4%,
8/01/30
...................................
605,000
660,873
Revenue,
2021,
Refunding,
5%,
8/01/30
.................................
3,375,000
3,900,443
New
Hanover
Regional
Medical
Center,
Revenue,
2017,
Pre-Refunded,
5%,
10/01/42
.......................................................
5,000,000
5,448,260
New
Hanover
Regional
Medical
Center,
Revenue,
2017,
Pre-Refunded,
5%,
10/01/47
.......................................................
13,565,000
14,781,128
County
of
Union
,
Enterprise
System
,
Revenue
,
2021
,
4
%
,
6/01/32
...............
1,050,000
1,134,932
County
of
Wake
,
GO,
2019
A,
5%,
3/01/32
............................................
7,870,000
8,909,726
Revenue,
2021,
3%,
3/01/35
.........................................
5,535,000
5,165,300
Revenue,
2021,
3%,
3/01/36
.........................................
6,000,000
5,465,979
Greenville
Utilities
Commission
,
Revenue
,
2019
,
5
%
,
8/01/44
..................
4,750,000
5,082,575
North
Carolina
Capital
Facilities
Finance
Agency
,
Campbell
University,
Inc.,
Revenue,
2021
A,
Refunding,
5%,
10/01/27
..........
400,000
419,900
Campbell
University,
Inc.,
Revenue,
2021
A,
Refunding,
5%,
10/01/28
..........
500,000
530,999
Campbell
University,
Inc.,
Revenue,
2021
A,
Refunding,
5%,
10/01/29
..........
550,000
589,410
Campbell
University,
Inc.,
Revenue,
2021
A,
Refunding,
5%,
10/01/30
..........
500,000
539,184
Campbell
University,
Inc.,
Revenue,
2021
A,
Refunding,
5%,
10/01/31
..........
1,855,000
2,011,201
Campbell
University,
Inc.,
Revenue,
2021
A,
Refunding,
5%,
10/01/32
..........
1,000,000
1,079,118
Campbell
University,
Inc.,
Revenue,
2021
A,
Refunding,
5%,
10/01/33
..........
1,670,000
1,799,285
Franklin
Tax-Free
Trust
Schedule
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)
North
Carolina
Capital
Facilities
Finance
Agency,
(continued)
Campbell
University,
Inc.,
Revenue,
2021
A,
Refunding,
4%,
10/01/34
..........
$
740,000
$
724,446
Campbell
University,
Inc.,
Revenue,
2021
A,
Refunding,
4%,
10/01/35
..........
360,000
347,313
Duke
University,
Revenue,
2015
B,
Pre-Refunded,
5%,
10/01/41
..............
13,585,000
14,250,547
Duke
University,
Revenue,
2016,
Refunding,
5%,
10/01/40
...................
2,500,000
2,643,198
Duke
University,
Revenue,
2016
B,
Refunding,
5%,
7/01/42
..................
7,500,000
7,921,800
Duke
University,
Revenue,
2016
B,
Refunding,
4%,
10/01/44
.................
5,085,000
5,077,081
Duke
University,
Revenue,
2016
B,
Refunding,
5%,
10/01/44
.................
11,000,000
11,595,820
High
Point
University,
Revenue,
2021,
Refunding,
4%,
5/01/32
................
1,000,000
1,028,122
High
Point
University,
Revenue,
2021,
Refunding,
4%,
5/01/33
................
1,000,000
1,024,290
High
Point
University,
Revenue,
2021,
Refunding,
4%,
5/01/34
................
2,270,000
2,310,614
Wake
Forest
University,
Revenue,
2016,
Refunding,
4%,
1/01/35
..............
5,000,000
5,093,172
Wake
Forest
University,
Revenue,
2016,
Refunding,
4%,
1/01/38
..............
5,500,000
5,519,369
Wake
Forest
University,
Revenue,
2016,
Refunding,
4%,
1/01/39
..............
5,250,000
5,247,340
Wake
Forest
University,
Revenue,
2018,
4%,
1/01/48
.......................
20,000,000
18,806,256
Wake
Forest
University,
Revenue,
2018,
5%,
1/01/48
.......................
13,500,000
14,246,408
North
Carolina
Central
University
,
Revenue,
2019,
AGMC
Insured,
5%,
4/01/44
.............................
1,575,000
1,671,378
Revenue,
2019,
4%,
4/01/49
.........................................
1,000,000
898,273
North
Carolina
Housing
Finance
Agency
,
Revenue,
41,
GNMA
Insured,
3.55%,
7/01/44
.............................
4,195,000
3,823,588
Revenue,
41,
GNMA
Insured,
3.625%,
7/01/49
............................
6,435,000
5,899,239
Revenue,
42,
GNMA
Insured,
2.45%,
7/01/34
.............................
750,000
654,151
Revenue,
42,
GNMA
Insured,
2.625%,
7/01/39
............................
3,035,000
2,435,478
Revenue,
42,
GNMA
Insured,
2.85%,
1/01/43
.............................
2,660,000
2,084,049
Revenue,
43,
GNMA
Insured,
2.8%,
1/01/40
..............................
4,740,000
3,807,860
Revenue,
43,
GNMA
Insured,
2.95%,
7/01/43
.............................
2,180,000
1,726,980
Revenue,
44,
3%,
7/01/46
...........................................
2,740,000
2,131,979
Revenue,
45,
Refunding,
GNMA
Insured,
2.2%,
7/01/40
.....................
1,805,000
1,274,847
Revenue,
46-A,
GNMA
Insured,
1.55%,
1/01/30
...........................
2,100,000
1,809,269
Revenue,
46-A,
GNMA
Insured,
1.75%,
1/01/31
...........................
975,000
830,616
North
Carolina
Medical
Care
Commission
,
Caromont
Health
Obligated
Group,
Revenue,
2021
A,
4%,
2/01/36
.............
1,675,000
1,694,628
Duke
University
Health
System,
Inc.,
Revenue,
2016
D,
Refunding,
4%,
6/01/42
...
7,000,000
6,826,093
EveryAge
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
9/01/47
..........
2,935,000
2,162,418
EveryAge
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
9/01/51
..........
960,000
687,124
Forest
at
Duke,
Inc.
Obligated
Group,
Revenue,
2021,
4%,
9/01/33
............
180,000
169,653
Forest
at
Duke,
Inc.
Obligated
Group,
Revenue,
2021,
4%,
9/01/34
............
185,000
172,816
Forest
at
Duke,
Inc.
Obligated
Group,
Revenue,
2021,
4%,
9/01/41
............
920,000
775,274
Forest
at
Duke,
Inc.
Obligated
Group,
Revenue,
2021,
4%,
9/01/46
............
1,665,000
1,337,807
Forest
at
Duke,
Inc.
Obligated
Group,
Revenue,
2021,
4%,
9/01/51
............
1,670,000
1,293,699
Friends
Homes
Obligated
Group,
Revenue,
2020
A,
4%,
9/01/50
..............
3,000,000
2,252,245
Novant
Health
Obligated
Group,
Revenue,
2013
A,
Refunding,
5%,
11/01/46
.....
20,000,000
20,005,662
Novant
Health
Obligated
Group,
Revenue,
2019
A,
4%,
11/01/49
..............
6,115,000
5,851,880
Novant
Health
Obligated
Group,
Revenue,
2019
A,
4%,
11/01/52
..............
6,640,000
6,239,732
Pines
at
Davidson,
Inc.
Obligated
Group,
Revenue,
2019
A,
5%,
1/01/34
........
2,050,000
2,064,719
Pines
at
Davidson,
Inc.
Obligated
Group,
Revenue,
2019
A,
5%,
1/01/49
........
5,000,000
4,844,586
Plantation
Village,
Inc.
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
1/01/41
1,020,000
831,367
Plantation
Village,
Inc.
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
1/01/52
3,510,000
2,590,859
Presbyterian
Homes
Obligated
Group,
Revenue,
2016
C,
Refunding,
5%,
10/01/31
5,000,000
5,079,988
Presbyterian
Homes
Obligated
Group,
Revenue,
2020
A,
4%,
10/01/45
.........
1,000,000
820,811
Presbyterian
Homes
Obligated
Group,
Revenue,
2020
A,
5%,
10/01/45
.........
3,600,000
3,490,869
Presbyterian
Homes
Obligated
Group,
Revenue,
2020
A,
4%,
10/01/50
.........
1,350,000
1,067,434
Presbyterian
Homes
Obligated
Group,
Revenue,
2020
A,
5%,
10/01/50
.........
1,400,000
1,337,465
Rex
Hospital,
Inc.
Obligated
Group,
Revenue,
2020
A,
4%,
7/01/49
............
4,000,000
3,756,760
United
Methodist
Retirement
Homes,
Inc.
Obligated
Group
(The),
Revenue,
2017
A,
Pre-Refunded,
5%,
10/01/37
........................................
200,000
207,946
Franklin
Tax-Free
Trust
Schedule
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)
North
Carolina
Medical
Care
Commission,
(continued)
United
Methodist
Retirement
Homes,
Inc.
Obligated
Group
(The),
Revenue,
2017
A,
Pre-Refunded,
5%,
10/01/42
........................................
$
2,250,000
$
2,339,396
United
Methodist
Retirement
Homes,
Inc.
Obligated
Group
(The),
Revenue,
2017
A,
Pre-Refunded,
5%,
10/01/47
........................................
2,540,000
2,640,918
Vidant
Health
Obligated
Group,
Revenue,
2015,
Refunding,
5%,
6/01/40
........
5,000,000
5,036,010
Wake
Forest
Baptist
Obligated
Group,
Revenue,
2019
A,
5%,
12/01/33
.........
1,000,000
1,075,909
North
Carolina
Municipal
Power
Agency
No.
1
,
Revenue
,
2015
A
,
Refunding
,
5
%
,
1/01/32
.........................................................
4,200,000
4,423,456
North
Carolina
State
Education
Assistance
Authority
,
Revenue,
Senior
Lien,
2020
A,
5%,
6/01/25
..............................
125,000
128,540
Revenue,
Senior
Lien,
2020
A,
5%,
6/01/26
..............................
300,000
312,810
Revenue,
Senior
Lien,
2020
A,
5%,
6/01/27
..............................
450,000
475,744
Revenue,
Senior
Lien,
2020
A,
5%,
6/01/28
..............................
500,000
535,141
Revenue,
Senior
Lien,
2020
A,
5%,
6/01/29
..............................
350,000
378,896
Revenue,
Senior
Lien,
2020
A,
3.125%,
6/01/39
...........................
1,210,000
1,124,062
North
Carolina
Turnpike
Authority
,
Revenue,
2016
A,
Refunding,
5%,
7/01/47
...............................
2,500,000
2,502,301
Revenue,
2018
A,
Refunding,
4%,
1/01/36
...............................
9,875,000
10,068,473
Revenue,
2018
A,
Refunding,
4%,
1/01/39
...............................
9,815,000
9,764,730
Revenue,
2021,
Refunding,
5%,
7/01/35
.................................
1,300,000
1,482,179
Revenue,
2021,
Refunding,
5%,
7/01/36
.................................
1,750,000
1,976,998
Revenue,
2021,
Refunding,
5%,
7/01/37
.................................
1,770,000
1,980,701
Revenue,
2021,
Refunding,
5%,
7/01/38
.................................
1,250,000
1,394,883
Revenue,
2021,
Refunding,
5%,
7/01/39
.................................
1,500,000
1,660,873
Revenue,
2021,
Refunding,
5%,
7/01/40
.................................
1,270,000
1,399,298
Revenue,
2021,
Refunding,
5%,
7/01/41
.................................
2,000,000
2,194,271
Revenue,
Senior
Lien,
2017,
Refunding,
AGMC
Insured,
5%,
1/01/31
...........
1,000,000
1,063,680
Revenue,
Senior
Lien,
2017,
Refunding,
AGMC
Insured,
5%,
1/01/39
...........
1,200,000
1,234,269
Revenue,
Senior
Lien,
2019,
AGMC
Insured,
5%,
1/01/49
...................
15,430,000
15,876,955
Raleigh
Durham
Airport
Authority
,
Revenue,
2015
A,
Refunding,
5%,
5/01/27
...............................
350,000
365,042
Revenue,
2015
A,
Refunding,
5%,
5/01/30
...............................
550,000
573,769
Revenue,
2020
A,
Refunding,
5%,
5/01/36
...............................
2,580,000
2,748,214
State
of
North
Carolina
,
GO,
2019
B,
5%,
6/01/29
............................................
2,500,000
2,846,060
GO,
2020
A,
5%,
6/01/31
............................................
2,500,000
2,898,867
Highway
Trust
Fund,
Revenue,
2020
B,
4%,
5/01/35
.......................
2,750,000
2,862,118
Town
of
Cary
,
Combined
Utility
Systems
,
Revenue
,
2017
B
,
Refunding
,
4
%
,
12/01/42
8,000,000
7,893,181
Town
of
Oak
Island
,
Enterprise
System
,
Revenue
,
2017
,
Refunding
,
AGMC
Insured
,
5
%
,
6/01/33
......................................................
1,000,000
1,078,420
University
of
North
Carolina
at
Chapel
Hill
,
Revenue,
2021
B,
Refunding,
5%,
12/01/34
..............................
1,225,000
1,424,455
Revenue,
2021
B,
Refunding,
5%,
12/01/37
..............................
2,180,000
2,470,882
Hospitals
at
Chapel
Hill,
Revenue,
2016,
5%,
2/01/46
.......................
4,265,000
4,373,159
Hospitals
at
Chapel
Hill,
Revenue,
2019,
5%,
2/01/49
.......................
2,850,000
3,187,743
University
of
North
Carolina
Hospitals
at
Chapel
Hill,
Revenue,
2019,
5%,
2/01/45
.
4,010,000
4,504,876
University
of
North
Carolina
at
Charlotte
(The)
,
Revenue,
2014,
Pre-Refunded,
5%,
4/01/43
..............................
5,000,000
5,100,424
Revenue,
2017,
5%,
10/01/47
........................................
10,000,000
10,458,139
Revenue,
2017
A,
Refunding,
4%,
10/01/40
..............................
2,250,000
2,175,120
Revenue,
2020
A,
Refunding,
5%,
10/01/38
..............................
1,145,000
1,242,295
Revenue,
2020
A,
Refunding,
4%,
10/01/40
..............................
290,000
279,653
University
of
North
Carolina
at
Greensboro
,
Revenue,
2014,
Refunding,
5%,
4/01/39
.................................
3,500,000
3,555,347
Revenue,
2017,
Refunding,
4%,
4/01/35
.................................
1,205,000
1,229,274
Revenue,
2017,
Refunding,
4%,
4/01/36
.................................
1,000,000
1,012,145
Franklin
Tax-Free
Trust
Schedule
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)
University
of
North
Carolina
at
Greensboro,
(continued)
Revenue,
2018,
5%,
4/01/43
.........................................
$
2,500,000
$
2,663,061
University
of
North
Carolina
at
Wilmington
,
Revenue
,
2015
,
Refunding
,
5
%
,
6/01/37
.
3,000,000
3,080,269
University
of
North
Carolina
System
,
Appalachian
State
University
,
Revenue
,
2008
A
,
AGMC
Insured
,
5
%
,
10/01/33
.........................................
160,000
160,052
Western
Carolina
University
,
Revenue,
2020
B,
3%,
4/01/36
........................................
1,000,000
904,243
Revenue,
2020
B,
4%,
4/01/50
........................................
5,000,000
4,629,952
550,852,210
South
Carolina
0.7%
South
Carolina
Jobs-Economic
Development
Authority
,
b
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
1,600,000
1,280,975
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
1,600,000
1,277,049
b
South
Carolina
State
Housing
Finance
&
Development
Authority
,
Garden
Oaks
LP
,
Revenue
,
144A,
2021
A
,
4.2
%
,
12/01/39
................................
2,500,000
1,909,747
4,467,771
Texas
0.6%
b
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
2,100,000
1,557,652
Lake
Houston
Redevelopment
Authority
,
City
of
Houston
Reinvestment
Zone
No.
10,
Revenue,
2021,
Refunding,
4%,
9/01/32
200,000
193,781
City
of
Houston
Reinvestment
Zone
No.
10,
Revenue,
2021,
Refunding,
4%,
9/01/33
200,000
192,470
b
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
A-2
,
5
%
,
12/01/52
............
2,800,000
2,048,470
3,992,373
Washington
0.2%
b
Washington
State
Housing
Finance
Commission
,
Madison
at
Rivers
Edge
Apartments
LLC
,
Revenue
,
144A,
2021
A
,
3.65
%
,
1/01/37
............................
1,600,000
1,281,030
Wisconsin
0.9%
b
Public
Finance
Authority
,
Revenue,
144A,
2022,
B-1,
4%,
12/28/44
................................
1,600,000
1,267,766
Gulf
Coast
Portfolio
Obligated
Group,
Revenue,
144A,
2021,
5.25%,
12/01/23
....
4,200,000
4,200,000
5,467,766
U.S.
Territories
4.2%
Guam
0.7%
c
Antonio
B
Won
Pat
International
Airport
Authority
,
Revenue,
2023
A,
Refunding,
5.25%,
10/01/30
............................
750,000
770,339
Revenue,
2023
A,
Refunding,
5.125%,
10/01/34
...........................
390,000
391,011
Revenue,
2023
A,
Refunding,
5.25%,
10/01/35
............................
265,000
264,818
Guam
Government
Waterworks
Authority
,
Revenue
,
2020
A
,
5
%
,
1/01/50
.........
3,205,000
3,217,167
4,643,335
Puerto
Rico
3.5%
Commonwealth
of
Puerto
Rico
,
d
GO,
FRN,
Zero
Cpn.,
11/01/43
........................................
110,346
47,587
GO,
2022
A-1,
5.625%,
7/01/27
.......................................
25,850
26,704
GO,
2022
A-1,
5.625%,
7/01/29
.......................................
25,431
26,535
GO,
2022
A-1,
5.75%,
7/01/31
........................................
24,701
26,000
GO,
2022
A-1,
4%,
7/01/33
..........................................
23,423
20,988
GO,
2022
A-1,
4%,
7/01/35
..........................................
21,054
18,441
GO,
2022
A-1,
4%,
7/01/37
..........................................
18,070
15,454
GO,
2022
A-1,
4%,
7/01/41
..........................................
24,568
20,295
GO,
2022
A-1,
4%,
7/01/46
..........................................
25,551
20,346
GO,
2022
A-1,
Zero
Cpn.,
7/01/24
.....................................
7,794
7,315
Franklin
Tax-Free
Trust
Schedule
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)
U.S.
Territories
(continued)
Puerto
Rico
(continued)
Commonwealth
of
Puerto
Rico,
(continued)
GO,
2022
A-1,
Zero
Cpn.,
7/01/33
.....................................
$
30,143
$
17,175
HTA
TRRB
Custodial
Trust
,
Revenue,
2005
L,
5.25%,
7/01/41
.....................................
2,000,000
2,021,975
Revenue,
2007
N,
5.25%,
7/01/36
.....................................
300,000
302,672
Puerto
Rico
Electric
Power
Authority
,
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/32
....................
1,500,000
1,503,892
e
Revenue,
XX,
5.25%,
7/01/40
........................................
4,120,000
2,894,300
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue,
2022
A,
5%,
7/01/62
........................................
596,256
553,027
Revenue,
2022
B,
Zero
Cpn.,
7/01/32
...................................
387,485
242,178
Revenue,
2022
C,
Zero
Cpn.,
7/01/53
..................................
662,828
367,983
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
480,902
Hospital
Auxilio
Mutuo
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
7/01/41
..
220,000
191,181
Puerto
Rico
Sales
Tax
Financing
Corp.
,
Sales
Tax,
Revenue,
A-1,
5%,
7/01/58
..................................
12,890,000
11,959,342
Sales
Tax,
Revenue,
A-2,
4.329%,
7/01/40
...............................
2,000,000
1,817,405
22,581,697
Total
U.S.
Territories
....................................................................
27,225,032
Total
Municipal
Bonds
(Cost
$671,278,729)
.....................................
625,758,514
Total
Long
Term
Investments
(Cost
$672,878,729)
...............................
627,330,233
a
a
a
a
a
Short
Term
Investments
0.8%
Municipal
Bonds
0.8%
North
Carolina
0.8%
f
Charlotte-Mecklenburg
Hospital
Authority
(The)
,
Atrium
Health
Obligated
Group,
Revenue,
2007
B,
Refunding,
SPA
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
2.45%,
1/15/38
..........................
1,100,000
1,100,000
Atrium
Health
Obligated
Group,
Revenue,
2007
C,
Refunding,
SPA
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
2.45%,
1/15/37
..........................
2,000,000
2,000,000
Atrium
Health
Obligated
Group,
Revenue,
2018
H,
SPA
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
2.45%,
1/15/48
.................................
1,800,000
1,800,000
4,900,000
Total
Municipal
Bonds
(Cost
$4,900,000)
.......................................
4,900,000
Total
Short
Term
Investments
(Cost
$4,900,000
)
.................................
4,900,000
a
Total
Investments
(Cost
$677,778,729)
99.4%
...................................
$632,230,233
Other
Assets,
less
Liabilities
0.6%
.............................................
4,290,340
Net
Assets
100.0%
...........................................................
$636,520,573
Franklin
Tax-Free
Trust
Schedule
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
See
Abbreviations
on
page
148
.
a
Fair
valued
using
significant
unobservable
inputs.
See
Note
12
regarding
fair
value
measurements.
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,
2023,
the
aggregate
value
of
these
securities
was
$21,266,164,
representing
3.3%
of
net
assets.
c
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).
d
The
coupon
rate
shown
represents
the
rate
at
period
end.
e
See
Note
7
regarding
defaulted
securities.
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
Highlights
Franklin
Virginia
Tax-Free
Income
Fund
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part
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statements.
Annual
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107
a
Year
Ended
February
28,
Year
Ended
February
28,
2019
b
2023
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.79
$11.13
$11.42
$10.92
$10.87
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.23
0.19
0.22
0.28
0.15
Net
realized
and
unrealized
gains
(losses)
...........
(1.08)
(0.34)
(0.29)
0.52
0.05
Total
from
investment
operations
....................
(0.85)
(0.15)
(0.07)
0.80
0.20
Less
distributions
from:
Net
investment
income
..........................
(0.22)
(0.19)
(0.22)
(0.30)
(0.15)
Net
asset
value,
end
of
year
.......................
$9.72
$10.79
$11.13
$11.42
$10.92
Total
return
e
...................................
(7.85)%
(1.38)%
(0.58)%
7.40%
1.90%
Ratios
to
average
net
assets
f
Expenses
g
....................................
0.86%
0.84%
0.84%
0.84%
0.84%
Net
investment
income
...........................
2.28%
1.71%
1.97%
2.54%
3.01%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$87,137
$108,135
$107,395
$77,058
$39,565
Portfolio
turnover
rate
............................
22.24%
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,
2023
2022
2021
2020
a
2019
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.79
$11.12
$11.42
$10.91
$10.91
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.24
0.21
0.24
0.30
0.34
Net
realized
and
unrealized
gains
(losses)
...........
(1.07)
(0.33)
(0.30)
0.52
—
d
Total
from
investment
operations
....................
(0.83)
(0.12)
(0.06)
0.82
0.34
Less
distributions
from:
Net
investment
income
..........................
(0.24)
(0.21)
(0.24)
(0.31)
(0.34)
Net
asset
value,
end
of
year
.......................
$9.72
$10.79
$11.12
$11.42
$10.91
Total
return
e
...................................
(7.71)%
(1.15)%
(0.52)%
7.66%
3.22%
Ratios
to
average
net
assets
Expenses
f
.....................................
0.71%
0.69%
0.69%
0.69%
0.69%
Net
investment
income
...........................
2.42%
1.86%
2.15%
2.69%
3.16%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$235,354
$316,275
$353,874
$398,547
$402,739
Portfolio
turnover
rate
............................
22.24%
34.49%
31.54%
14.44%
9.60%
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
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,
2023
2022
2021
2020
a
2019
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.98
$11.32
$11.62
$11.10
$11.09
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.18
0.15
0.18
0.24
0.29
Net
realized
and
unrealized
gains
(losses)
...........
(1.09)
(0.34)
(0.30)
0.54
—
d
Total
from
investment
operations
....................
(0.91)
(0.19)
(0.12)
0.78
0.29
Less
distributions
from:
Net
investment
income
..........................
(0.18)
(0.15)
(0.18)
(0.26)
(0.28)
Net
asset
value,
end
of
year
.......................
$9.89
$10.98
$11.32
$11.62
$11.10
Total
return
e
...................................
(8.27)%
(1.76)%
(1.05)%
7.07%
2.68%
Ratios
to
average
net
assets
Expenses
f
.....................................
1.25%
1.23%
1.24%
1.24%
1.24%
Net
investment
income
...........................
1.80%
1.27%
1.58%
2.14%
2.61%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$12,400
$20,687
$38,151
$52,357
$62,041
Portfolio
turnover
rate
............................
22.24%
34.49%
31.54%
14.44%
9.60%
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
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,
2023
2022
2021
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.80
$11.13
$11.43
$10.92
$10.91
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.26
0.22
0.25
0.32
0.36
Net
realized
and
unrealized
gains
(losses)
...........
(1.09)
(0.32)
(0.29)
0.52
0.01
Total
from
investment
operations
....................
(0.83)
(0.10)
(0.04)
0.84
0.37
Less
distributions
from:
Net
investment
income
..........................
(0.25)
(0.23)
(0.26)
(0.33)
(0.36)
Net
asset
value,
end
of
year
.......................
$9.72
$10.80
$11.13
$11.43
$10.92
Total
return
....................................
(7.66)%
(1.00)%
(0.38)%
7.80%
3.44%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.58%
0.56%
0.57%
0.56%
0.57%
Expenses
net
of
waiver
and
payments
by
affiliates
d
......
0.56%
0.55%
0.55%
0.55%
0.55%
Net
investment
income
...........................
2.61%
2.00%
2.27%
2.83%
3.30%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$6,243
$7,778
$6,812
$5,829
$4,947
Portfolio
turnover
rate
............................
22.24%
34.49%
31.54%
14.44%
9.60%
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
Virginia
Tax-Free
Income
Fund
(continued)
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The
accompanying
notes
are
an
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part
of
these
financial
statements.
Annual
Report
111
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.80
$11.13
$11.43
$10.92
$10.92
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.25
0.22
0.25
0.31
0.35
Net
realized
and
unrealized
gains
(losses)
...........
(1.07)
(0.33)
(0.30)
0.53
0.01
Total
from
investment
operations
....................
(0.82)
(0.11)
(0.05)
0.84
0.36
Less
distributions
from:
Net
investment
income
..........................
(0.25)
(0.22)
(0.25)
(0.33)
(0.36)
Net
asset
value,
end
of
year
.......................
$9.73
$10.80
$11.13
$11.43
$10.92
Total
return
....................................
(7.61)%
(1.05)%
(0.42)%
7.76%
3.32%
Ratios
to
average
net
assets
Expenses
d
....................................
0.61%
0.59%
0.59%
0.59%
0.59%
Net
investment
income
...........................
2.54%
1.96%
2.23%
2.79%
3.26%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$111,733
$138,033
$128,837
$109,844
$84,880
Portfolio
turnover
rate
............................
22.24%
34.49%
31.54%
14.44%
9.60%
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
Schedule
of
investments,
February
28,
2023
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
97.8%
California
0.2%
California
Municipal
Finance
Authority
,
Revenue
,
2022
A-1
,
4.25
%
,
12/01/37
.......
$
1,000,000
$
832,817
Florida
0.8%
Capital
Trust
Agency,
Inc.
,
Kingdom
Development
West
Palm
Beach
Portfolio
Obligated
Group,
Revenue,
2021
A-1,
3.75%,
12/01/36
.............................................
3,456,000
2,877,716
a
SHI
-
Lake
Osborne
LLC,
Revenue,
144A,
2021
A-1,
3.68%,
1/01/57
...........
1,100,000
741,547
3,619,263
Illinois
0.5%
Metropolitan
Pier
&
Exposition
Authority
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
6/15/50
..
1,500,000
1,464,955
State
of
Illinois
,
GO
,
2017
D
,
5
%
,
11/01/26
................................
1,000,000
1,038,498
2,503,453
New
Jersey
1.0%
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue,
2018
A,
Refunding,
5%,
12/15/32
..............................
3,460,000
3,748,618
Revenue,
2021
A,
Refunding,
4%,
6/15/36
...............................
1,000,000
1,000,085
4,748,703
New
York
0.3%
Metropolitan
Transportation
Authority
,
Revenue
,
2021
A-1
,
4
%
,
11/15/46
..........
1,350,000
1,173,613
South
Carolina
0.8%
South
Carolina
Jobs-Economic
Development
Authority
,
a
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
1,200,000
960,731
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
1,200,000
957,787
a
South
Carolina
State
Housing
Finance
&
Development
Authority
,
Garden
Oaks
LP
,
Revenue
,
144A,
2021
A
,
4.2
%
,
12/01/39
................................
2,000,000
1,527,797
3,446,315
Texas
0.7%
a
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
1,600,000
1,186,783
Lake
Houston
Redevelopment
Authority
,
City
of
Houston
Reinvestment
Zone
No.
10,
Revenue,
2021,
Refunding,
5%,
9/01/28
225,000
231,604
City
of
Houston
Reinvestment
Zone
No.
10,
Revenue,
2021,
Refunding,
5%,
9/01/29
250,000
259,090
a
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
A-2
,
5
%
,
12/01/52
............
2,100,000
1,536,352
3,213,829
Virginia
81.0%
Albemarle
County
Economic
Development
Authority
,
Westminster
Canterbury
of
the
Blue
Ridge
Obligated
Group,
Revenue,
2022
A,
Refunding,
4%,
6/01/30
............................................
1,120,000
1,068,936
Westminster
Canterbury
of
the
Blue
Ridge
Obligated
Group,
Revenue,
2022
A,
Refunding,
4%,
6/01/31
............................................
1,165,000
1,099,032
Westminster
Canterbury
of
the
Blue
Ridge
Obligated
Group,
Revenue,
2022
A,
Refunding,
4%,
6/01/32
............................................
1,105,000
1,032,473
Westminster
Canterbury
of
the
Blue
Ridge
Obligated
Group,
Revenue,
2022
A,
Refunding,
4%,
6/01/33
............................................
1,260,000
1,165,577
Westminster
Canterbury
of
the
Blue
Ridge
Obligated
Group,
Revenue,
2022
A,
Refunding,
4%,
6/01/42
............................................
2,725,000
2,327,129
Westminster
Canterbury
of
the
Blue
Ridge
Obligated
Group,
Revenue,
2022
A,
Refunding,
4%,
6/01/49
............................................
2,800,000
2,263,242
Westminster
Canterbury
of
the
Blue
Ridge
Obligated
Group,
Revenue,
2022
B,
Refunding,
4%,
6/01/54
............................................
5,215,000
3,946,346
Alexandria
Industrial
Development
Authority
,
Goodwin
House,
Inc.
Obligated
Group,
Revenue,
2015,
Pre-Refunded,
5%,
10/01/45
975,000
1,024,005
Franklin
Tax-Free
Trust
Schedule
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)
Alexandria
Industrial
Development
Authority,
(continued)
Protestant
Episcopal
High
School
in
Virginia,
Revenue,
2021
C,
Refunding,
4%,
1/01/46
........................................................
$
2,450,000
$
2,294,167
Arlington
County
Industrial
Development
Authority
,
Virginia
Hospital
Center
Arlington
Health
System,
Revenue,
2020,
Refunding,
4%,
7/01/45
........................................................
2,000,000
1,864,132
Virginia
Hospital
Center
Arlington
Health
System,
Revenue,
2020,
Refunding,
3.75%,
7/01/50
........................................................
10,350,000
8,827,067
Chesapeake
Hospital
Authority
,
Chesapeake
Hospital
Authority
Obligated
Group,
Revenue,
2019,
Refunding,
4%,
7/01/39
........................................................
1,000,000
968,010
Chesapeake
Hospital
Authority
Obligated
Group,
Revenue,
2019,
Refunding,
4%,
7/01/43
........................................................
4,000,000
3,805,038
City
of
Hopewell
,
Sewer
System
,
Revenue
,
2011
A
,
Refunding
,
5
%
,
7/15/42
.......
4,850,000
4,820,610
City
of
Norfolk
,
GO,
2013
A,
Pre-Refunded,
5%,
8/01/32
................................
5,845,000
5,890,226
Water,
Revenue,
2018,
5%,
11/01/43
...................................
6,920,000
7,334,127
Water,
Revenue,
2018,
5%,
11/01/47
...................................
6,925,000
7,301,771
City
of
Richmond
,
Public
Utility
,
Revenue
,
2016
A
,
Refunding
,
5
%
,
1/15/33
........
10,000,000
10,498,665
Commonwealth
of
Virginia
,
GO,
2020
A,
4%,
6/01/31
............................................
4,650,000
5,028,698
GO,
2022
A,
5%,
6/01/52
............................................
2,445,000
2,707,210
County
of
Arlington
,
GO
,
2019
,
4
%
,
6/15/34
................................
2,000,000
2,112,854
County
of
Fairfax
,
GO,
2023
A,
4%,
10/01/40
...........................................
3,000,000
3,023,741
Sewer,
Revenue,
2017,
5%,
7/15/37
....................................
2,760,000
2,977,060
Sewer,
Revenue,
2021
A,
5%,
7/15/46
..................................
2,500,000
2,773,034
Fairfax
County
Economic
Development
Authority
,
Revenue,
2017,
5%,
4/01/42
.........................................
5,085,000
5,356,943
Goodwin
House,
Inc.
Obligated
Group,
Revenue,
2016
A,
Pre-Refunded,
5%,
10/01/36
.......................................................
4,865,000
5,076,433
Fairfax
County
Industrial
Development
Authority
,
Inova
Health
System
Obligated
Group
,
Revenue
,
2014
A
,
5
%
,
5/15/44
..................................
2,500,000
2,518,662
Fairfax
County
Water
Authority
,
Revenue,
2017,
Refunding,
5%,
4/01/43
.................................
3,510,000
3,718,946
Revenue,
2017,
Refunding,
5%,
4/01/47
.................................
5,000,000
5,269,632
Farmville
Industrial
Development
Authority
,
Elwood
Place
LLC,
Revenue,
2021,
AGMC
Insured,
5.375%,
7/01/53
...........
5,000,000
5,234,021
Longwood
Housing
Foundation
LLC,
Revenue,
2018
A,
Refunding,
5%,
1/01/48
...
5,000,000
4,793,833
Hampton
Roads
Sanitation
District
,
Revenue,
2016
A,
Pre-Refunded,
5%,
8/01/33
............................
5,115,000
5,460,461
Revenue,
2016
A,
Pre-Refunded,
5%,
8/01/43
............................
11,840,000
12,639,659
Hampton
Roads
Transportation
Accountability
Commission
,
Revenue,
Senior
Lien,
2018
A,
5%,
7/01/48
..............................
14,495,000
15,257,130
Revenue,
Senior
Lien,
2018
A,
Pre-Refunded,
5%,
7/01/48
...................
5,505,000
6,068,732
Revenue,
Senior
Lien,
2020
A,
5%,
7/01/50
..............................
4,000,000
4,302,667
Revenue,
Senior
Lien,
2020
A,
5%,
7/01/60
..............................
4,885,000
5,240,969
Henrico
County
Economic
Development
Authority
,
Westminster-Canterbury
Corp.
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
10/01/40
.......................................................
500,000
481,892
Westminster-Canterbury
Corp.
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
10/01/45
.......................................................
725,000
671,219
Westminster-Canterbury
Corp.
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
10/01/50
.......................................................
1,500,000
1,354,356
Westminster-Canterbury
Corp.
Obligated
Group,
Revenue,
2022
A,
5%,
10/01/42
..
1,125,000
1,184,557
Westminster-Canterbury
Corp.
Obligated
Group,
Revenue,
2022
A,
5%,
10/01/52
..
5,000,000
5,171,393
Franklin
Tax-Free
Trust
Schedule
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)
Lexington
Industrial
Development
Authority
,
Lexington
Retirement
Community
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
1/01/38
........................................................
$
685,000
$
591,107
Lexington
Retirement
Community
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
1/01/42
........................................................
1,120,000
910,776
Lexington
Retirement
Community
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
1/01/48
........................................................
2,315,000
1,767,613
Washington
&
Lee
University
(The),
Revenue,
2018
A,
Refunding,
5%,
1/01/35
....
1,105,000
1,213,556
Washington
&
Lee
University
(The),
Revenue,
2018
A,
Refunding,
5%,
1/01/48
....
1,500,000
1,597,949
Lynchburg
Economic
Development
Authority
,
Centra
Health
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
1/01/47
......
4,500,000
4,570,581
Centra
Health
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
1/01/47
........
2,350,000
2,127,814
Centra
Health
Obligated
Group,
Revenue,
2021,
Refunding,
3%,
1/01/51
........
2,000,000
1,403,548
Centra
Health
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
1/01/55
........
6,305,000
5,548,391
Montgomery
County
Economic
Development
Authority
,
Virginia
Tech
Foundation,
Inc.,
Revenue,
2019
A,
4%,
6/01/36
................
1,200,000
1,216,080
Virginia
Tech
Foundation,
Inc.,
Revenue,
2019
A,
4%,
6/01/37
................
500,000
502,582
Virginia
Tech
Foundation,
Inc.,
Revenue,
2019
A,
4%,
6/01/39
................
1,750,000
1,737,444
Norfolk
Airport
Authority
,
Revenue,
2019,
5%,
7/01/39
.........................................
800,000
846,430
Revenue,
2019,
5%,
7/01/43
.........................................
3,925,000
4,103,580
Northern
Virginia
Transportation
Commission
,
Commuter
Rail
Operating
&
Capital
Fund
,
Revenue
,
2022
,
5
%
,
6/01/47
....................................
1,750,000
1,918,446
Prince
Edward
County
Industrial
Development
Authority
,
President
and
Trustees
of
Hampden-Sydney
College
,
Revenue
,
2018
,
5
%
,
9/01/48
....................
2,050,000
2,094,702
Riverside
Regional
Jail
Authority
,
Revenue
,
2015
,
Refunding
,
5
%
,
7/01/31
.........
6,215,000
6,447,033
Salem
Economic
Development
Authority
,
Roanoke
College
,
Revenue
,
2020
,
Refunding
,
5
%
,
4/01/49
......................................................
925,000
923,408
Stafford
County
&
Staunton
Industrial
Development
Authority
,
Revenue
,
2007
E
,
AGMC
Insured
,
5
%
,
8/01/37
...............................................
960,000
960,547
Upper
Occoquan
Sewage
Authority
,
Revenue
,
2016
B
,
Refunding
,
4
%
,
7/01/35
.....
6,165,000
6,294,096
Virginia
Beach
Development
Authority
,
Westminster-Canterbury
on
Chesapeake
Bay
Obligated
Group,
Revenue,
2018,
Refunding,
5%,
9/01/40
............................................
1,750,000
1,652,473
Westminster-Canterbury
on
Chesapeake
Bay
Obligated
Group,
Revenue,
2018,
Refunding,
5%,
9/01/44
............................................
2,215,000
2,037,096
Virginia
College
Building
Authority
,
Revenue,
2016
A,
5%,
9/01/27
........................................
3,925,000
4,193,405
Revenue,
2016
A,
Pre-Refunded,
5%,
9/01/27
............................
75,000
80,077
Revenue,
2016
A,
Refunding,
4%,
2/01/30
...............................
7,000,000
7,179,041
Randolph-Macon
College,
Revenue,
2021
A,
Refunding,
3%,
1/15/39
...........
795,000
630,940
Randolph-Macon
College,
Revenue,
2021
A,
Refunding,
2.25%,
1/15/40
........
450,000
314,152
Randolph-Macon
College,
Revenue,
2021
A,
Refunding,
3%,
1/15/41
...........
500,000
383,948
Randolph-Macon
College,
Revenue,
2021
A,
Refunding,
3%,
1/15/46
...........
1,100,000
790,812
Randolph-Macon
College,
Revenue,
2021
A,
Refunding,
3%,
1/15/51
...........
1,750,000
1,196,487
Regent
University,
Revenue,
2021,
Refunding,
4%,
6/01/36
..................
2,750,000
2,507,240
Regent
University,
Revenue,
2021,
Refunding,
3%,
6/01/41
..................
4,800,000
3,420,989
Regent
University,
Revenue,
2021,
Refunding,
4%,
6/01/46
..................
3,725,000
3,075,901
Virginia
Commonwealth
Transportation
Board
,
Revenue,
2016,
5%,
9/15/30
.........................................
2,260,000
2,401,621
Revenue,
2016,
5%,
9/15/31
.........................................
4,000,000
4,249,277
Revenue,
2022,
Refunding,
4%,
5/15/36
.................................
5,000,000
5,175,301
Virginia
Housing
Development
Authority
,
Revenue
,
2018
D
,
3.8
%
,
10/01/43
........
3,805,000
3,391,631
Virginia
Public
Building
Authority
,
Revenue
,
2019
A
,
4
%
,
8/01/35
................
1,250,000
1,301,514
Virginia
Public
School
Authority
,
Revenue,
2018
B,
5%,
8/01/30
........................................
5,280,000
5,873,399
Revenue,
2020
B,
Refunding,
4%,
8/01/34
...............................
3,925,000
4,127,544
Franklin
Tax-Free
Trust
Schedule
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
Public
School
Authority,
(continued)
County
of
Prince
William,
Revenue,
2018,
4%,
3/01/33
......................
$
5,795,000
$
6,105,425
Virginia
Resources
Authority
,
Revenue,
5%,
11/01/38
.............................................
1,970,000
2,051,136
Revenue,
Pre-Refunded,
5%,
11/01/38
..................................
3,195,000
3,353,223
Revenue,
2015
B,
Refunding,
5%,
11/01/45
..............................
5,255,000
5,429,401
Revenue,
2018
C,
Refunding,
5%,
11/01/48
..............................
7,655,000
8,232,967
Virginia
Small
Business
Financing
Authority
,
95
Express
Lanes
LLC,
Revenue,
Senior
Lien,
2022,
Refunding,
4%,
1/01/48
.....
7,000,000
5,863,906
Bon
Secours
Mercy
Health,
Inc.,
Revenue,
2020
A,
Refunding,
4%,
12/01/49
.....
5,000,000
4,553,963
Capital
Beltway
Express
LLC,
Revenue,
Senior
Lien,
2022,
Refunding,
5%,
12/31/57
6,000,000
6,009,376
Elizabeth
River
Crossings
OpCo
LLC,
Revenue,
Senior
Lien,
2022,
Refunding,
4%,
1/01/40
........................................................
7,500,000
6,864,737
I-66
Express
Mobility
Partners
LLC,
Revenue,
Senior
Lien,
2017,
5%,
12/31/47
...
5,000,000
5,001,577
I-66
Express
Mobility
Partners
LLC,
Revenue,
Senior
Lien,
2017,
5%,
12/31/52
...
4,600,000
4,585,530
LifeSpire
of
Virginia
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
12/01/36
...
2,210,000
1,939,761
LifeSpire
of
Virginia
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
12/01/41
...
2,500,000
2,077,423
LifeSpire
of
Virginia
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
12/01/51
...
7,500,000
5,750,668
National
Senior
Communities,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
1/01/37
....................................................
2,750,000
2,570,933
National
Senior
Communities,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
1/01/51
....................................................
2,250,000
1,889,700
Sentara
Healthcare
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/01/37
...
4,000,000
3,990,806
Sentara
Healthcare
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/01/38
...
6,000,000
5,944,174
Sentara
Healthcare
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/01/39
...
2,730,000
2,682,990
Winchester
Economic
Development
Authority
,
Valley
Health
Obligated
Group
,
Revenue
,
2015
,
Refunding
,
5
%
,
1/01/44
.................................
5,000,000
5,068,006
366,678,888
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
960,773
Wisconsin
1.1%
a
Public
Finance
Authority
,
Revenue,
144A,
2022,
B-1,
4%,
12/28/44
................................
1,200,000
950,825
Gulf
Coast
Portfolio
Obligated
Group,
Revenue,
144A,
2021,
5.25%,
12/01/23
....
3,100,000
3,100,000
Pine
Forest
2022
Obligated
Group,
Revenue,
144A,
2022
A,
6.5%,
12/01/52
.....
1,000,000
989,482
5,040,307
U.S.
Territories
11.2%
District
of
Columbia
8.0%
Metropolitan
Washington
Airports
Authority
,
Aviation,
Revenue,
2021
A,
Refunding,
5%,
10/01/46
.......................
5,000,000
5,185,591
Dulles
Toll
Road,
Revenue,
Senior
Lien,
2022
A,
Refunding,
AGMC
Insured,
4%,
10/01/52
.......................................................
10,000,000
9,106,972
Washington
Metropolitan
Area
Transit
Authority
,
Revenue,
2017
B,
5%,
7/01/42
........................................
2,500,000
2,616,700
Dedicated,
Revenue,
2020
A,
5%,
7/15/36
...............................
5,000,000
5,563,473
Dedicated,
Revenue,
2020
A,
5%,
7/15/45
...............................
3,145,000
3,356,749
Dedicated,
Revenue,
2021
A,
5%,
7/15/41
...............................
7,530,000
8,230,310
Dedicated,
Revenue,
2021
A,
5%,
7/15/46
...............................
2,000,000
2,146,299
36,206,094
Franklin
Tax-Free
Trust
Schedule
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
See
Abbreviations
on
page
148
.
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
U.S.
Territories
(continued)
Puerto
Rico
3.2%
HTA
HRRB
Custodial
Trust
,
Revenue
,
2007
CC
,
5.5
%
,
7/01/31
.................
$
1,800,000
$
1,855,594
HTA
TRRB
Custodial
Trust
,
Revenue
,
2005
L
,
5.25
%
,
7/01/41
..................
1,600,000
1,617,578
Puerto
Rico
Electric
Power
Authority
,
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/32
....................
1,700,000
1,704,410
b
Revenue,
WW,
5.5%,
7/01/38
.........................................
1,040,000
735,800
b
Revenue,
XX,
5.25%,
7/01/40
........................................
1,900,000
1,334,750
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue,
2022
A,
5%,
7/01/62
........................................
103,451
95,951
Revenue,
2022
B,
Zero
Cpn.,
7/01/32
...................................
67,229
42,018
Revenue,
2022
C,
Zero
Cpn.,
7/01/53
..................................
115,001
63,845
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
459,540
Hospital
Auxilio
Mutuo
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
7/01/37
..
200,000
180,004
Puerto
Rico
Sales
Tax
Financing
Corp.
,
Sales
Tax,
Revenue,
A-1,
4.75%,
7/01/53
................................
6,400,000
5,736,845
Sales
Tax,
Revenue,
A-1,
5%,
7/01/58
..................................
500,000
463,900
14,290,235
Total
U.S.
Territories
....................................................................
50,496,329
Total
Municipal
Bonds
(Cost
$481,327,165)
.....................................
442,714,290
a
a
a
a
Short
Term
Investments
1.4%
Municipal
Bonds
1.4%
Virginia
1.4%
c
Albemarle
County
Economic
Development
Authority
,
Sentara
Healthcare
Obligated
Group
,
Revenue
,
2018
B
,
Refunding
,
SPA
TD
Bank
NA
,
Daily
VRDN
and
Put
,
2.5
%
,
10/01/48
........................................................
6,200,000
6,200,000
Total
Municipal
Bonds
(Cost
$6,200,000)
.......................................
6,200,000
Total
Short
Term
Investments
(Cost
$6,200,000
)
.................................
6,200,000
a
Total
Investments
(Cost
$487,527,165)
99.2%
...................................
$448,914,290
Other
Assets,
less
Liabilities
0.8%
.............................................
3,952,597
Net
Assets
100.0%
...........................................................
$452,866,887
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,
2023,
the
aggregate
value
of
these
securities
was
$11,954,290,
representing
2.6%
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,
2023
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
117
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
.................................
$205,047,842
$369,663,907
$308,359,816
Value
-
Unaffiliated
issuers
................................
$189,702,159
$341,358,620
$285,724,267
Cash
..................................................
6,726,295
120,502
2,752,830
Receivables:
Capital
shares
sold
......................................
13,586
57,625
12,414
Interest
...............................................
2,315,733
3,456,728
3,613,535
Total
assets
........................................
198,757,773
344,993,475
292,103,046
Liabilities:
Payables:
Investment
securities
purchased
............................
2,056,867
—
—
Capital
shares
redeemed
.................................
236,815
337,301
350,473
Management
fees
.......................................
70,061
152,581
132,219
Distribution
fees
........................................
22,724
39,891
31,956
Transfer
agent
fees
......................................
33,050
62,610
58,598
Professional
fees
.......................................
36,520
37,549
37,171
Trustees'
fees
and
expenses
...............................
2,469
2,543
2,397
Distributions
to
shareholders
...............................
34,544
81,465
28,237
Accrued
expenses
and
other
liabilities
.........................
18,212
23,063
22,027
Total
liabilities
.......................................
2,511,262
737,003
663,078
Net
assets,
at
value
...............................
$196,246,511
$344,256,472
$291,439,968
Net
assets
consist
of:
Paid-in
capital
...........................................
$226,811,379
$404,858,796
$341,980,583
Total
distributable
earnings
(losses)
...........................
(30,564,868)
(60,602,324)
(50,540,615)
Net
assets,
at
value
...............................
$196,246,511
$344,256,472
$291,439,968
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
February
28,
2023
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
Class
A:
Net
assets,
at
value
.....................................
$42,244,281
$76,311,986
$60,153,332
Shares
outstanding
......................................
4,256,703
7,337,863
6,040,303
Net
asset
value
per
share
a
................................
$9.92
$10.40
$9.96
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%,
96.25%
and
96.25%,
respectively)
..........................
$10.31
$10.81
$10.35
Class
A1:
Net
assets,
at
value
.....................................
$125,644,214
$189,495,858
$175,906,086
Shares
outstanding
......................................
12,675,561
18,222,112
17,673,149
Net
asset
value
per
share
a
................................
$9.91
$10.40
$9.95
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%,
96.25%
and
96.25%,
respectively)
..........................
$10.30
$10.81
$10.34
Class
C:
Net
assets,
at
value
.....................................
$8,263,553
$19,609,712
$12,723,581
Shares
outstanding
......................................
822,560
1,857,514
1,257,514
Net
asset
value
and
maximum
offering
price
per
share
a
...........
$10.05
$10.56
$10.12
Class
R6:
Net
assets,
at
value
.....................................
$1,785,580
$10,366,320
$6,306,064
Shares
outstanding
......................................
180,107
996,671
633,437
Net
asset
value
and
maximum
offering
price
per
share
...........
$9.91
$10.40
$9.96
Advisor
Class:
Net
assets,
at
value
.....................................
$18,308,883
$48,472,596
$36,350,905
Shares
outstanding
......................................
1,846,810
4,658,994
3,650,320
Net
asset
value
and
maximum
offering
price
per
share
...........
$9.91
$10.40
$9.96
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,
2023
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
119
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
.................................
$335,291,804
$768,660,043
$677,778,729
Value
-
Unaffiliated
issuers
................................
$315,199,265
$716,688,514
$632,230,233
Cash
..................................................
45,331
4,946,771
485,480
Receivables:
Capital
shares
sold
......................................
55,770
465,228
406,473
Interest
...............................................
3,129,159
10,380,887
7,219,707
Total
assets
........................................
318,429,525
732,481,400
640,341,893
Liabilities:
Payables:
Investment
securities
purchased
............................
—
—
1,415,130
Capital
shares
redeemed
.................................
377,043
1,059,992
1,765,940
Management
fees
.......................................
141,891
298,814
263,961
Distribution
fees
........................................
37,266
83,307
66,575
Transfer
agent
fees
......................................
62,688
109,812
115,413
Trustees'
fees
and
expenses
...............................
2,379
2,860
2,444
Distributions
to
shareholders
...............................
79,652
123,232
106,655
Accrued
expenses
and
other
liabilities
.........................
61,903
91,085
85,202
Total
liabilities
.......................................
762,822
1,769,102
3,821,320
Net
assets,
at
value
...............................
$317,666,703
$730,712,298
$636,520,573
Net
assets
consist
of:
Paid-in
capital
...........................................
$387,001,863
$886,026,195
$790,909,612
Total
distributable
earnings
(losses)
...........................
(69,335,160)
(155,313,897)
(154,389,039)
Net
assets,
at
value
...............................
$317,666,703
$730,712,298
$636,520,573
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
February
28,
2023
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
Class
A:
Net
assets,
at
value
.....................................
$80,313,062
$166,355,284
$133,789,099
Shares
outstanding
......................................
8,237,817
16,192,744
13,051,157
Net
asset
value
per
share
a
................................
$9.75
$10.27
$10.25
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%,
96.25%
and
96.25%,
respectively)
..........................
$10.13
$10.67
$10.65
Class
A1:
Net
assets,
at
value
.....................................
$162,446,607
$439,718,351
$339,755,914
Shares
outstanding
......................................
16,658,198
42,830,411
33,153,194
Net
asset
value
per
share
a
................................
$9.75
$10.27
$10.25
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%,
96.25%
and
96.25%,
respectively)
..........................
$10.13
$10.67
$10.65
Class
C:
Net
assets,
at
value
.....................................
$17,531,291
$33,334,284
$27,302,963
Shares
outstanding
......................................
1,761,230
3,213,232
2,620,804
Net
asset
value
and
maximum
offering
price
per
share
a
...........
$9.95
$10.37
$10.42
Class
R6:
Net
assets,
at
value
.....................................
$11,708,681
$20,619,982
$20,233,374
Shares
outstanding
......................................
1,198,720
2,006,492
1,975,174
Net
asset
value
and
maximum
offering
price
per
share
...........
$9.77
$10.28
$10.24
Advisor
Class:
Net
assets,
at
value
.....................................
$45,667,062
$70,684,397
$115,439,223
Shares
outstanding
......................................
4,677,445
6,880,140
11,263,183
Net
asset
value
and
maximum
offering
price
per
share
...........
$9.76
$10.27
$10.25
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,
2023
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
121
Franklin
Virginia
Tax-
Free
Income
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$487,527,165
Value
-
Unaffiliated
issuers
..................................................................
$448,914,290
Cash
....................................................................................
318,077
Receivables:
Capital
shares
sold
........................................................................
50,559
Interest
.................................................................................
4,676,041
Total
assets
..........................................................................
453,958,967
Liabilities:
Payables:
Capital
shares
redeemed
...................................................................
588,873
Management
fees
.........................................................................
193,705
Distribution
fees
..........................................................................
41,848
Transfer
agent
fees
........................................................................
92,579
Trustees'
fees
and
expenses
.................................................................
2,676
Distributions
to
shareholders
.................................................................
104,140
Accrued
expenses
and
other
liabilities
...........................................................
68,259
Total
liabilities
.........................................................................
1,092,080
Net
assets,
at
value
.................................................................
$452,866,887
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$557,563,634
Total
distributable
earnings
(losses)
.............................................................
(104,696,747)
Net
assets,
at
value
.................................................................
$452,866,887
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
February
28,
2023
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
122
Franklin
Virginia
Tax-
Free
Income
Fund
Class
A:
Net
assets,
at
value
.......................................................................
$87,136,980
Shares
outstanding
........................................................................
8,964,303
Net
asset
value
per
share
a
..................................................................
$9.72
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%)
................................
$10.10
Class
A1:
Net
assets,
at
value
.......................................................................
$235,353,743
Shares
outstanding
........................................................................
24,217,424
Net
asset
value
per
share
a
..................................................................
$9.72
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%)
................................
$10.10
Class
C:
Net
assets,
at
value
.......................................................................
$12,399,917
Shares
outstanding
........................................................................
1,253,934
Net
asset
value
and
maximum
offering
price
per
share
a
.............................................
$9.89
Class
R6:
Net
assets,
at
value
.......................................................................
$6,243,322
Shares
outstanding
........................................................................
641,997
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$9.72
Advisor
Class:
Net
assets,
at
value
.......................................................................
$111,732,925
Shares
outstanding
........................................................................
11,486,433
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$9.73
a
Redemption
price
is
equal
to
net
asset
value
l
ess
contingent
deferred
sales
charges,
if
applicable.
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Operations
for
the
year
ended
February
28,
2023
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
123
Franklin
Alabama
Tax-
Free
Income
Fund
Franklin
Georgia
Tax-
Free
Income
Fund
Franklin
Louisiana
Tax-
Free
Income
Fund
Investment
income:
Interest:
Unaffiliated
issuers
......................................
$6,939,003
$13,374,583
$10,527,301
Expenses:
Management
fees
(Note
3
a
)
.................................
1,187,244
1,936,014
1,661,774
Distribution
fees:
(Note
3c
)
    Class
A
..............................................
112,287
201,908
158,196
    Class
A1
.............................................
140,007
211,224
196,882
    Class
C
..............................................
65,848
151,132
100,144
Transfer
agent
fees:
(Note
3e
)
    Class
A
..............................................
29,005
57,542
46,653
    Class
A1
.............................................
90,344
150,866
145,254
    Class
C
..............................................
6,531
16,616
11,372
    Class
R6
.............................................
960
4,103
2,293
    Advisor
Class
..........................................
11,306
37,374
25,970
Custodian
fees
(Note
4
)
....................................
1,066
1,998
1,619
Registration
and
filing
fees
..................................
17,933
13,323
14,972
Professional
fees
.........................................
60,702
71,513
62,007
Trustees'
fees
and
expenses
................................
3,831
6,628
4,948
Other
..................................................
44,531
92,140
65,933
Total
expenses
.......................................
1,771,595
2,952,381
2,498,017
Expense
reductions
(Note
4
)
.............................
(821)
(1,022)
(1,894)
Expenses
waived/paid
by
affiliates
(Note
3f)
..................
(59,070)
(80)
(190)
Net
expenses
.......................................
1,711,704
2,951,279
2,495,933
Net
investment
income
..............................
5,227,299
10,423,304
8,031,368
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
....................................
(550,238)
(7,422,368)
(3,580,288)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
....................................
(22,789,068)
(37,586,160)
(32,395,123)
Net
realized
and
unrealized
gain
(loss)
..........................
(23,339,306)
(45,008,528)
(35,975,411)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
........
$(18,112,007)
$(34,585,224)
$(27,944,043)
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Operations
(continued)
for
the
year
ended
February
28,
2023
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
124
Franklin
Maryland
Tax-
Free
Income
Fund
Franklin
Missouri
Tax-
Free
Income
Fund
Franklin
North
Carolina
Tax-
Free
Income
Fund
Investment
income:
Interest:
Unaffiliated
issuers
......................................
$11,988,433
$29,902,094
$21,567,956
Expenses:
Management
fees
(Note
3
a
)
.................................
1,774,539
3,819,558
3,347,324
Distribution
fees:
(Note
3c
)
    Class
A
..............................................
202,961
426,597
355,057
    Class
A1
.............................................
183,850
492,912
384,708
    Class
C
..............................................
132,622
266,219
219,152
Transfer
agent
fees:
(Note
3e
)
    Class
A
..............................................
62,471
110,354
101,347
    Class
A1
.............................................
142,113
319,391
274,640
    Class
C
..............................................
15,778
26,544
24,079
    Class
R6
.............................................
3,254
9,674
7,483
    Advisor
Class
..........................................
34,918
48,422
83,225
Custodian
fees
(Note
4
)
....................................
1,705
4,160
3,493
Registration
and
filing
fees
..................................
17,382
18,553
17,724
Professional
fees
.........................................
74,474
99,732
73,054
Trustees'
fees
and
expenses
................................
5,213
11,225
9,437
Other
..................................................
64,447
127,438
141,264
Total
expenses
.......................................
2,715,727
5,780,779
5,041,987
Expense
reductions
(Note
4
)
.............................
(1,821)
(3,553)
(4,562)
Expenses
waived/paid
by
affiliates
(Note
3f)
..................
—
(1,793)
(1,334)
Net
expenses
.......................................
2,713,906
5,775,433
5,036,091
Net
investment
income
..............................
9,274,527
24,126,661
16,531,865
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
....................................
(7,975,275)
(21,361,631)
(14,027,331)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
....................................
(27,068,319)
(77,792,805)
(62,079,218)
Net
realized
and
unrealized
gain
(loss)
..........................
(35,043,594)
(99,154,436)
(76,106,549)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
........
$(25,769,067)
$(75,027,775)
$(59,574,684)
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Operations
(continued)
for
the
year
ended
February
28,
2023
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
125
Franklin
Virginia
Tax-
Free
Income
Fund
Investment
income:
Interest:
Unaffiliated
issuers
........................................................................
$15,494,220
Expenses:
Management
fees
(Note
3
a
)
...................................................................
2,447,916
Distribution
fees:
(Note
3c
)
    Class
A
................................................................................
229,971
    Class
A1
...............................................................................
264,290
    Class
C
................................................................................
101,700
Transfer
agent
fees:
(Note
3e
)
    Class
A
................................................................................
72,333
    Class
A1
...............................................................................
208,417
    Class
C
................................................................................
12,364
    Class
R6
...............................................................................
2,589
    Advisor
Class
............................................................................
91,339
Custodian
fees
(Note
4
)
......................................................................
2,568
Registration
and
filing
fees
....................................................................
20,023
Professional
fees
...........................................................................
73,124
Trustees'
fees
and
expenses
..................................................................
7,369
Other
....................................................................................
77,530
Total
expenses
.........................................................................
3,611,533
Expense
reductions
(Note
4
)
...............................................................
(3,515)
Expenses
waived/paid
by
affiliates
(Note
3f)
....................................................
(746)
Net
expenses
.........................................................................
3,607,272
Net
investment
income
................................................................
11,886,948
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
......................................................................
(9,377,978)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
(47,552,051)
Net
realized
and
unrealized
gain
(loss)
............................................................
(56,930,029)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$(45,043,081)
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.
126
Franklin
Alabama
Tax-Free
Income
Fund
Franklin
Georgia
Tax-Free
Income
Fund
Year
Ended
February
28,
2023
Year
Ended
February
28,
2022
Year
Ended
February
28,
2023
Year
Ended
February
28,
2022
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$5,227,299
$5,076,535
$10,423,304
$11,144,057
Net
realized
gain
(loss)
............
(550,238)
1,245,803
(7,422,368)
531,297
Net
change
in
unrealized
appreciation
(depreciation)
.................
(22,789,068)
(6,199,610)
(37,586,160)
(14,369,583)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
(18,112,007)
122,728
(34,585,224)
(2,694,229)
Distributions
to
shareholders:
Class
A
........................
(1,036,037)
(754,875)
(2,112,564)
(1,924,865)
Class
A1
.......................
(3,431,367)
(3,598,684)
(5,828,544)
(6,250,182)
Class
C
........................
(188,374)
(277,485)
(502,522)
(660,141)
Class
R6
.......................
(49,965)
(46,916)
(363,765)
(403,672)
Advisor
Class
...................
(447,010)
(399,137)
(1,495,781)
(1,785,540)
Total
distributions
to
shareholders
.....
(5,152,753)
(5,077,097)
(10,303,176)
(11,024,400)
Capital
share
transactions:
(Note
2
)
Class
A
........................
111,663
17,533,172
(6,595,134)
17,846,174
Class
A1
.......................
(22,516,464)
(8,167,800)
(35,655,157)
(17,223,067)
Class
C
........................
(3,955,851)
(9,923,910)
(6,508,892)
(15,938,031)
Class
R6
.......................
(302,386)
612,250
(5,097,440)
3,801,180
Advisor
Class
...................
449,996
5,242,272
(16,910,087)
6,322,271
Total
capital
share
transactions
.......
(26,213,042)
5,295,984
(70,766,710)
(5,191,473)
Net
increase
(decrease)
in
net
assets
.....................
(49,477,802)
341,615
(115,655,110)
(18,910,102)
Net
assets:
Beginning
of
year
..................
245,724,313
245,382,698
459,911,582
478,821,684
End
of
year
......................
$196,246,511
$245,724,313
$344,256,472
$459,911,582
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
127
Franklin
Louisiana
Tax-Free
Income
Fund
Franklin
Maryland
Tax-Free
Income
Fund
Year
Ended
February
28,
2023
Year
Ended
February
28,
2022
Year
Ended
February
28,
2023
Year
Ended
February
28,
2022
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$8,031,368
$8,465,382
$9,274,527
$9,201,721
Net
realized
gain
(loss)
............
(3,580,288)
3,844,628
(7,975,275)
317,111
Net
change
in
unrealized
appreciation
(depreciation)
.................
(32,395,123)
(12,436,991)
(27,068,319)
(9,770,304)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
(27,944,043)
(126,981)
(25,769,067)
(251,472)
Distributions
to
shareholders:
Class
A
........................
(1,519,013)
(1,355,423)
(2,099,584)
(1,847,123)
Class
A1
.......................
(5,014,939)
(5,559,774)
(5,014,256)
(5,228,037)
Class
C
........................
(301,203)
(410,766)
(432,089)
(494,740)
Class
R6
.......................
(181,380)
(171,786)
(332,637)
(264,173)
Advisor
Class
...................
(934,723)
(951,070)
(1,290,745)
(1,356,086)
Total
distributions
to
shareholders
.....
(7,951,258)
(8,448,819)
(9,169,311)
(9,190,159)
Capital
share
transactions:
(Note
2
)
Class
A
........................
(2,619,672)
14,760,234
(2,420,595)
14,990,913
Class
A1
.......................
(36,224,345)
(10,867,047)
(32,972,184)
(21,476,737)
Class
C
........................
(5,435,907)
(9,129,099)
(4,587,337)
(10,253,672)
Class
R6
.......................
(942,152)
2,158,691
(902,211)
6,130,219
Advisor
Class
...................
(1,999,978)
5,976,569
(5,007,484)
(1,248,456)
Total
capital
share
transactions
.......
(47,222,054)
2,899,348
(45,889,811)
(11,857,733)
Net
increase
(decrease)
in
net
assets
.....................
(83,117,355)
(5,676,452)
(80,828,189)
(21,299,364)
Net
assets:
Beginning
of
year
..................
374,557,323
380,233,775
398,494,892
419,794,256
End
of
year
......................
$291,439,968
$374,557,323
$317,666,703
$398,494,892
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
Missouri
Tax-Free
Income
Fund
Franklin
North
Carolina
Tax-Free
Income
Fund
Year
Ended
February
28,
2023
Year
Ended
February
28,
2022
Year
Ended
February
28,
2023
Year
Ended
February
28,
2022
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$24,126,661
$24,793,123
$16,531,865
$16,758,639
Net
realized
gain
(loss)
............
(21,361,631)
1,856,632
(14,027,331)
2,020,954
Net
change
in
unrealized
appreciation
(depreciation)
.................
(77,792,805)
(33,227,550)
(62,079,218)
(24,854,143)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
(75,027,775)
(6,577,795)
(59,574,684)
(6,074,550)
Distributions
to
shareholders:
Class
A
........................
(4,880,341)
(4,640,922)
(3,170,425)
(2,910,737)
Class
A1
.......................
(14,833,742)
(15,763,982)
(9,153,724)
(9,886,701)
Class
C
........................
(989,784)
(1,239,261)
(602,606)
(736,807)
Class
R6
.......................
(803,127)
(872,106)
(499,873)
(427,516)
Advisor
Class
...................
(2,328,879)
(2,220,951)
(2,901,482)
(2,743,534)
Total
distributions
to
shareholders
.....
(23,835,873)
(24,737,222)
(16,328,110)
(16,705,295)
Capital
share
transactions:
(Note
2
)
Class
A
........................
(20,498,698)
45,567,195
(18,279,436)
26,654,713
Class
A1
.......................
(88,850,838)
(40,150,732)
(80,798,332)
(46,116,361)
Class
C
........................
(14,071,379)
(20,644,808)
(11,670,976)
(19,791,334)
Class
R6
.......................
(9,762,458)
4,579,390
(713,448)
6,260,900
Advisor
Class
...................
(7,042,482)
4,007,477
(5,217,857)
15,670,711
Total
capital
share
transactions
.......
(140,225,855)
(6,641,478)
(116,680,049)
(17,321,371)
Net
increase
(decrease)
in
net
assets
.....................
(239,089,503)
(37,956,495)
(192,582,843)
(40,101,216)
Net
assets:
Beginning
of
year
..................
969,801,801
1,007,758,296
829,103,416
869,204,632
End
of
year
......................
$730,712,298
$969,801,801
$636,520,573
$829,103,416
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
Virginia
Tax-Free
Income
Fund
Year
Ended
February
28,
2023
Year
Ended
February
28,
2022
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$11,886,948
$11,648,986
Net
realized
gain
(loss)
.................................................
(9,377,978)
2,823,447
Net
change
in
unrealized
appreciation
(depreciation)
...........................
(47,552,051)
(21,506,954)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
(45,043,081)
(7,034,521)
Distributions
to
shareholders:
Class
A
.............................................................
(2,065,728)
(1,968,849)
Class
A1
............................................................
(6,321,400)
(6,386,350)
Class
C
.............................................................
(279,197)
(390,813)
Class
R6
............................................................
(156,330)
(152,144)
Advisor
Class
........................................................
(2,900,585)
(2,725,070)
Total
distributions
to
shareholders
..........................................
(11,723,240)
(11,623,226)
Capital
share
transactions:
(Note
2
)
Class
A
.............................................................
(10,481,727)
4,545,859
Class
A1
............................................................
(50,259,582)
(27,940,434)
Class
C
.............................................................
(6,332,061)
(17,017,853)
Class
R6
............................................................
(839,600)
1,224,299
Advisor
Class
........................................................
(13,362,192)
13,684,586
Total
capital
share
transactions
............................................
(81,275,162)
(25,503,543)
Net
increase
(decrease)
in
net
assets
...................................
(138,041,483)
(44,161,290)
Net
assets:
Beginning
of
year
.......................................................
590,908,370
635,069,660
End
of
year
...........................................................
$452,866,887
$590,908,370
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
130
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
separate
funds
(Funds),
seven
of
which
are
included
in
this
report.
The
Funds
follow
the
accounting
and
reporting
guidance
in
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standards
Codification
Topic
946,
Financial
Services
–
Investment
Companies
(ASC
946)
and
apply
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP),
including,
but
not
limited
to,
ASC
946.
The
Funds
offer
five
classes
of
shares:
Class
A,
Class
A1,
Class
C,
Class
R6
and
Advisor
Class.
Class
C
shares
automatically
convert
to
Class
A
shares
on
a
monthly
basis,
after
they
have
been
held
for
8
years.
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
Board
has
designated
the
Funds’
investment
manager
as
the
valuation
designee
and
has
responsibility
for
oversight
of
valuation.
The
investment
manager
is
assisted
by
the
Funds'
administrator
in
performing
this
responsibility,
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,
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
Basis
Certain
or
all
Funds
purchase
securities
on
a
when-issued
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.
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
131
franklintempleton.com
Annual
Report
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,
2023, 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
132
franklintempleton.com
Annual
Report
2.
Shares
of
Beneficial
Interest
At
February
28,
2023,
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,
2023
Shares
sold
a
...................................
1,621,324
$16,265,061
1,748,490
$18,594,349
Shares
issued
in
reinvestment
of
distributions
..........
97,512
979,141
183,240
1,934,918
Shares
redeemed
...............................
(1,714,714)
(17,132,539)
(2,557,645)
(27,124,401)
Net
increase
(decrease)
..........................
4,122
$111,663
(625,915)
$(6,595,134)
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
Class
A1
Class
A1
Shares:
Year
ended
February
28,
2023
Shares
sold
...................................
312,555
$3,178,258
719,329
$7,631,801
Shares
issued
in
reinvestment
of
distributions
..........
306,041
3,075,398
485,622
5,131,175
Shares
redeemed
...............................
(2,876,995)
(28,770,120)
(4,572,010)
(48,418,133)
Net
increase
(decrease)
..........................
(2,258,399)
$(22,516,464)
(3,367,059)
$(35,655,157)
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)
Class
C
Class
C
Shares:
Year
ended
February
28,
2023
Shares
sold
...................................
97,683
$991,550
67,375
$718,553
Shares
issued
in
reinvestment
of
distributions
..........
17,476
178,192
44,511
477,570
Shares
redeemed
a
..............................
(501,116)
(5,125,593)
(714,709)
(7,705,015)
Net
increase
(decrease)
..........................
(385,957)
$(3,955,851)
(602,823)
$(6,508,892)
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)
Class
R6
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
133
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,
2023
Shares
sold
...................................
62,185
$627,320
772,115
$8,210,516
Shares
issued
in
reinvestment
of
distributions
..........
4,971
49,965
15,117
159,927
Shares
redeemed
...............................
(97,776)
(979,671)
(1,264,007)
(13,467,883)
Net
increase
(decrease)
..........................
(30,620)
$(302,386)
(476,775)
$(5,097,440)
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
Advisor
Class
Advisor
Class
Shares:
Year
ended
February
28,
2023
Shares
sold
...................................
869,679
$8,755,022
1,698,941
$18,043,256
Shares
issued
in
reinvestment
of
distributions
..........
40,371
405,764
130,170
1,376,447
Shares
redeemed
...............................
(870,353)
(8,710,790)
(3,397,008)
(36,329,790)
Net
increase
(decrease)
..........................
39,697
$449,996
(1,567,897)
$(16,910,087)
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
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,
2023
Shares
sold
a
...................................
1,273,963
$12,969,760
1,689,537
$16,756,402
Shares
issued
in
reinvestment
of
distributions
..........
140,975
1,420,787
199,166
1,961,949
Shares
redeemed
...............................
(1,698,813)
(17,010,219)
(2,141,682)
(21,138,946)
Net
increase
(decrease)
..........................
(283,875)
$(2,619,672)
(252,979)
$(2,420,595)
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
Class
A1
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
134
franklintempleton.com
Annual
Report
Franklin
Louisiana
Tax-Free
Income
Fund
Franklin
Maryland
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
A1
Shares:
Year
ended
February
28,
2023
Shares
sold
...................................
511,375
$5,157,176
351,520
$3,484,316
Shares
issued
in
reinvestment
of
distributions
..........
478,699
4,823,068
445,209
4,388,962
Shares
redeemed
...............................
(4,583,325)
(46,204,589)
(4,136,594)
(40,845,462)
Net
increase
(decrease)
..........................
(3,593,251)
$(36,224,345)
(3,339,865)
$(32,972,184)
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)
Class
C
Class
C
Shares:
Year
ended
February
28,
2023
Shares
sold
...................................
100,570
$1,023,842
226,293
$2,284,701
Shares
issued
in
reinvestment
of
distributions
..........
28,824
295,374
40,997
412,514
Shares
redeemed
a
..............................
(655,090)
(6,755,123)
(721,197)
(7,284,552)
Net
increase
(decrease)
..........................
(525,696)
$(5,435,907)
(453,907)
$(4,587,337)
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)
Class
R6
Class
R6
Shares:
Year
ended
February
28,
2023
Shares
sold
...................................
149,286
$1,510,559
681,091
$6,663,440
Shares
issued
in
reinvestment
of
distributions
..........
17,697
178,368
21,007
207,693
Shares
redeemed
...............................
(261,711)
(2,631,079)
(786,537)
(7,773,344)
Net
increase
(decrease)
..........................
(94,728)
$(942,152)
(84,439)
$(902,211)
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
Advisor
Class
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
Advisor
Class
Shares:
Year
ended
February
28,
2023
Shares
sold
...................................
1,064,682
$10,742,983
2,568,387
$25,471,601
Shares
issued
in
reinvestment
of
distributions
..........
86,626
872,889
118,105
1,163,994
Shares
redeemed
...............................
(1,331,934)
(13,615,850)
(3,162,831)
(31,643,079)
Net
increase
(decrease)
..........................
(180,626)
$(1,999,978)
(476,339)
$(5,007,484)
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)
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,
2023
Shares
sold
a
...................................
5,855,721
$61,401,454
4,327,513
$44,876,566
Shares
issued
in
reinvestment
of
distributions
..........
450,106
4,710,839
284,857
2,952,870
Shares
redeemed
...............................
(8,228,845)
(86,610,991)
(6,367,988)
(66,108,872)
Net
increase
(decrease)
..........................
(1,923,018)
$(20,498,698)
(1,755,618)
$(18,279,436)
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
Class
A1
Class
A1
Shares:
Year
ended
February
28,
2023
Shares
sold
...................................
2,239,512
$23,487,893
2,128,039
$22,071,447
Shares
issued
in
reinvestment
of
distributions
..........
1,320,758
13,817,937
800,975
8,305,512
Shares
redeemed
...............................
(12,021,358)
(126,156,668)
(10,716,547)
(111,175,291)
Net
increase
(decrease)
..........................
(8,461,088)
$(88,850,838)
(7,787,533)
$(80,798,332)
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)
Class
C
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
136
franklintempleton.com
Annual
Report
Franklin
Missouri
Tax-Free
Income
Fund
Franklin
North
Carolina
Tax-Free
Income
Fund
Shares
Amount
Shares
Amount
Class
C
Shares:
Year
ended
February
28,
2023
Shares
sold
...................................
294,589
$3,154,109
209,125
$2,203,737
Shares
issued
in
reinvestment
of
distributions
..........
90,952
961,917
54,916
578,976
Shares
redeemed
a
..............................
(1,712,296)
(18,187,405)
(1,366,078)
(14,453,689)
Net
increase
(decrease)
..........................
(1,326,755)
$(14,071,379)
(1,102,037)
$(11,670,976)
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)
Class
R6
Class
R6
Shares:
Year
ended
February
28,
2023
Shares
sold
...................................
838,718
$8,827,824
1,393,866
$14,428,350
Shares
issued
in
reinvestment
of
distributions
..........
69,077
724,330
33,064
342,803
Shares
redeemed
...............................
(1,838,636)
(19,314,612)
(1,486,703)
(15,484,601)
Net
increase
(decrease)
..........................
(930,841)
$(9,762,458)
(59,773)
$(713,448)
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
Advisor
Class
Advisor
Class
Shares:
Year
ended
February
28,
2023
Shares
sold
...................................
3,284,148
$34,246,384
7,262,296
$74,897,973
Shares
issued
in
reinvestment
of
distributions
..........
183,654
1,920,437
269,486
2,792,496
Shares
redeemed
...............................
(4,131,561)
(43,209,303)
(8,022,802)
(82,908,326)
Net
increase
(decrease)
..........................
(663,759)
$(7,042,482)
(491,020)
$(5,217,857)
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
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
137
franklintempleton.com
Annual
Report
Franklin
Virginia
Tax-Free
Income
Fund
Shares
Amount
Class
A
Class
A
Shares:
Year
ended
February
28,
2023
Shares
sold
a
...................................
1,789,456
$17,690,250
Shares
issued
in
reinvestment
of
distributions
..........
179,625
1,771,113
Shares
redeemed
...............................
(3,024,345)
(29,943,090)
Net
increase
(decrease)
..........................
(1,055,264)
$(10,481,727)
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
Class
A1
Class
A1
Shares:
Year
ended
February
28,
2023
Shares
sold
...................................
597,867
$5,910,955
Shares
issued
in
reinvestment
of
distributions
..........
572,381
5,645,061
Shares
redeemed
...............................
(6,264,117)
(61,815,598)
Net
increase
(decrease)
..........................
(5,093,869)
$(50,259,582)
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)
Class
C
Class
C
Shares:
Year
ended
February
28,
2023
Shares
sold
...................................
112,143
$1,130,448
Shares
issued
in
reinvestment
of
distributions
..........
26,940
270,609
Shares
redeemed
a
..............................
(769,209)
(7,733,118)
Net
increase
(decrease)
..........................
(630,126)
$(6,332,061)
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)
Class
R6
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
138
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,
2023
Shares
sold
...................................
388,577
$3,831,979
Shares
issued
in
reinvestment
of
distributions
..........
14,739
145,517
Shares
redeemed
...............................
(481,730)
(4,817,096)
Net
increase
(decrease)
..........................
(78,414)
$(839,600)
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
Advisor
Class
Advisor
Class
Shares:
Year
ended
February
28,
2023
Shares
sold
...................................
5,189,615
$51,441,715
Shares
issued
in
reinvestment
of
distributions
..........
263,131
2,596,173
Shares
redeemed
...............................
(6,746,936)
(67,400,080)
Net
increase
(decrease)
..........................
(1,294,190)
$(13,362,192)
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
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
139
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,
2023,
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
........
0.554%
0.510%
0.524%
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
........
0.519%
0.475%
0.481%
Franklin
Virginia
Tax-
Free
Income
Fund
Gross
effective
investment
management
fee
rate
........
0.496%
3.
Transactions
with
Affiliates
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
140
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
year:
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
..................
$5,471
$4,161
$3,668
$3,294
CDSC
retained
...........................
$698
$6,725
$10,948
$12,138
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
..................
$13,006
$7,558
$3,132
CDSC
retained
...........................
$32,053
$39,495
$12,910
3.
Transactions
with
Affiliates
(continued)
c.
Distribution
Fees
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
141
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.
Effective
October
1,
2022,
the
fees
are
based
on
an
annualized
asset
based
fee
of
0.016%
plus
a
reduced
transaction
based
fee.
Prior
to
October
1,
2022,
the
fees
were
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,
2023,
the
Funds
paid
transfer
agent
fees
as
noted
in
the
Statements
of
Operations
of
which
the
following
amounts
were
retained
by
Investor
Services:
f.
Waiver
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
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
0.65%,
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,
2023.
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,
2023,
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
........................
$60,884
$109,662
$84,347
$108,482
Franklin
Missouri
Tax-
Free
Income
Fund
Franklin
North
Carolina
Tax-
Free
Income
Fund
Franklin
Virginia
Tax-
Free
Income
Fund
Transfer
agent
fees
........................
$219,765
$188,500
$144,339
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
..............................
$5,976,528
$35,117,199
—
$33,049,620
Sales
..................................
$5,954,028
$24,313,455
—
$12,700,000
Net
Realized
Gains
(Losses)
.................
$(560,922)
$(857,084)
—
—
3.
Transactions
with
Affiliates
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
142
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,
2023, 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,
2023,
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
..............................
$10,198,928
$66,027,471
$26,163,245
Sales
..................................
$6,100,000
$58,742,25
0
$23,137,825
Net
Realized
Gains
(Losses)
.................
—
$(3,130,818)
$(1,215,929)
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
.............................
$
4,896,624
$
8,440,045
$
12,705,581
$
16,496,338
Long
term
.............................
10,367,405
24,252,472
15,491,997
33,130,661
Total
capital
loss
carryforwards
............
$15,264,029
$32,692,517
$28,197,578
$49,626,999
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
.............................
$
20,285,619
$
32,392,070
$
24,089,454
Long
term
.............................
83,239,664
77,827,319
42,504,920
Total
capital
loss
carryforwards
............
$103,525,283
$110,219,389
$66,594,374
3.
Transactions
with
Affiliates
(continued)
g.
Interfund
Transactions
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
143
franklintempleton.com
Annual
Report
The
tax
character
of
distributions
paid
during
the
years
ended
February
28,
2023
and
2022,
were
as
follows:
Franklin
Alabama
Tax-Free
Income
Fund
Franklin
Georgia
Tax-Free
Income
Fund
2023
2022
2023
2022
Distributions
paid
from:
Ordinary
income
........................
$18,105
$—
$39,459
$—
Tax
exempt
income
......................
5,134,648
5,077,097
10,263,717
11,024,400
$5,152,753
$5,077,097
$10,303,176
$11,024,400
Franklin
Louisiana
Tax-Free
Income
Fund
Franklin
Maryland
Tax-Free
Income
Fund
2023
2022
2023
2022
Distributions
paid
from:
Ordinary
income
........................
$10,260
$—
$11,632
$—
Tax
exempt
income
......................
7,940,998
8,448,819
9,157,679
9,190,159
$7,951,258
$8,448,819
$9,169,311
$9,190,159
Franklin
Missouri
Tax-Free
Income
Fund
Franklin
North
Carolina
Tax-Free
Income
Fund
2023
2022
2023
2022
Distributions
paid
from:
Ordinary
income
........................
$29,478
$—
$67,888
$—
Tax
exempt
income
......................
23,806,395
24,737,222
16,260,222
16,705,295
$23,835,873
$24,737,222
$16,328,110
$16,705,295
Franklin
Virginia
Tax-Free
Income
Fund
2023
2022
Distributions
paid
from:
Ordinary
income
........................
$18,568
$—
Tax
exempt
income
......................
11,704,672
11,623,226
$11,723,240
$11,623,226
5.
Income
Taxes
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
144
franklintempleton.com
Annual
Report
At
February
28,
2023,
the
cost
of
investments,
net
unrealized
appreciation
(depreciation)
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
wash
sales.
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
.......................
$205,039,246
$369,654,961
$308,389,650
$335,355,712
Unrealized
appreciation
.....................
$875,636
$1,378,209
$535,954
$2,383,933
Unrealized
depreciation
.....................
(16,212,723)
(29,674,550)
(23,201,337)
(22,540,380)
Net
unrealized
appreciation
(depreciation)
.......
$(15,337,087)
$(28,296,341)
$(22,665,383)
$(20,156,447)
Distributable
earnings:
Undistributed
tax
exempt
income
..............
$76,099
$476,922
$357,269
$535,437
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
.......................
$770,125,140
$677,877,746
$487,578,552
Unrealized
appreciation
.....................
$3,923,516
$1,303,371
$1,796,333
Unrealized
depreciation
.....................
(57,360,142)
(46,950,884)
(40,460,595)
Net
unrealized
appreciation
(depreciation)
.......
$(53,436,626)
$(45,647,513)
$(38,664,262)
Distributable
earnings:
Undistributed
tax
exempt
income
..............
$1,790,074
$1,599,979
$677,471
5.
Income
Taxes
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
145
franklintempleton.com
Annual
Report
6.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities)
for
the
year
ended
February
28,
2023,
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
Schedules
of
Investments.
At
February
28,
2023,
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
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.
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
..............................
$39,699,445
$59,295,600
$36,339,976
$126,049,680
Sales
..................................
$62,378,939
$125,080,436
$72,558,213
$165,418,226
Franklin
Missouri
Tax-
Free
Income
Fund
Franklin
North
Carolina
Tax-
Free
Income
Fund
Franklin
Virginia
Tax-
Free
Income
Fund
Purchases
..............................
$213,471,524
$115,872,489
$107,789,234
Sales
..................................
$354,222,123
$217,634,840
$167,972,261
Value
Percentage
of
Net
Assets
Franklin
Georgia
Tax-Free
Income
Fund
..........................................
$
1,594
,
675
0.5%
Franklin
Louisiana
Tax-Free
Income
Fund
.........................................
600
,
638
0.2%
Franklin
Maryland
Tax-Free
Income
Fund
.........................................
1,397
,
31
2
0.4%
Franklin
Missouri
Tax-Free
Income
Fund
..........................................
3
,
318,175
0.5%
Franklin
North
Carolina
Tax-Free
Income
Fund
.....................................
2,894
,
300
0.5%
Franklin
Virginia
Tax-Free
Income
Fund
...........................................
2,070
,
550
0.5%
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
146
franklintempleton.com
Annual
Report
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
2,
2024.
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,
2023,
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.
A
summary
of
inputs
used
as
of
February
28,
2023,
in
valuing
the
Funds'
assets
carried
at
fair
value,
is
as
follows:
Level
1
Level
2
Level
3
Total
Franklin
Alabama
Tax-Free
Income
Fund
Assets:
Investments
in
Securities:
Corporate
Bonds
........................
$
—
$
—
$
491,162
$
491,162
Municipal
Bonds
.........................
—
189,210,997
—
189,210,997
Total
Investments
in
Securities
...........
$—
$189,210,997
$491,162
$189,702,159
Franklin
Georgia
Tax-Free
Income
Fund
Assets:
Investments
in
Securities:
Corporate
Bonds
........................
—
—
884,092
884,092
Municipal
Bonds
.........................
—
338,674,528
—
338,674,528
Short
Term
Investments
...................
—
1,800,000
—
1,800,000
Total
Investments
in
Securities
...........
$—
$340,474,528
$884,092
$341,358,620
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
147
franklintempleton.com
Annual
Report
A
reconciliation
in
which
Level
3
inputs
are
used
in
determining
fair
value
is
presented
when
there
are
significant
Level
3
assets
and/or
liabilities
at
the
beginning
and/or
end
of
the year.
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.
Level
1
Level
2
Level
3
Total
Franklin
Louisiana
Tax-Free
Income
Fund
Assets:
Municipal
Bonds
.........................
$
—
$
285,724,267
$
—
$
285,724,267
Total
Investments
in
Securities
...........
$—
$285,724,267
$—
$285,724,267
Franklin
Maryland
Tax-Free
Income
Fund
Assets:
Investments
in
Securities:
Municipal
Bonds
.........................
—
314,699,265
—
314,699,265
Short
Term
Investments
...................
—
500,000
—
500,000
Total
Investments
in
Securities
...........
$—
$315,199,265
$—
$315,199,265
Franklin
Missouri
Tax-Free
Income
Fund
Assets:
Investments
in
Securities:
a
Municipal
Bonds
.........................
—
716,388,514
—
716,388,514
Short
Term
Investments
...................
—
300,000
—
300,000
Total
Investments
in
Securities
...........
$—
$716,688,514
$—
$716,688,514
Franklin
North
Carolina
Tax-Free
Income
Fund
Assets:
Investments
in
Securities:
Corporate
Bonds
........................
—
—
1,571,719
1,571,719
Municipal
Bonds
.........................
—
625,758,514
—
625,758,514
Short
Term
Investments
...................
—
4,900,000
—
4,900,000
Total
Investments
in
Securities
...........
$—
$630,658,514
$1,571,719
$632,230,233
Franklin
Virginia
Tax-Free
Income
Fund
Assets:
Investments
in
Securities:
a
Municipal
Bonds
.........................
—
442,714,290
—
442,714,290
Short
Term
Investments
...................
—
6,200,000
—
6,200,000
Total
Investments
in
Securities
...........
$—
$448,914,290
$—
$448,914,290
12.
Fair
Value
Measurements
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
148
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
NATL
National
Reinsurance
Corp.
SPA
Standby
Purchase
Agreement
Franklin
Tax-Free
Trust
Report
of
Independent
Registered
Public
Accounting
Firm
149
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
Opinions
on
the
Financial
Statements
We
have
audited
the
accompanying
statements
of
assets
and
liabilities,
including
the
schedules
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,
2023,
the
related
statements
of
operations
for
the
year
ended
February
28,
2023,
the
statements
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
ended
February
28,
2023,
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,
2023,
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,
2023
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,
2023
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,
2023
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)
150
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,
2023:
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)
$5,134,648
$10,263,717
$7,940,998
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)
$9,157,679
$23,806,395
$16,260,222
Pursuant
to:
Franklin
Virginia
Tax-Free
Income
Fund
Exempt-Interest
Dividends
Distributed
§852(b)(5)(A)
$11,704,672
Franklin
Tax-Free
Trust
Board
Members
and
Officers
151
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
118
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
118
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
118
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
152
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
118
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
118
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
118
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
153
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
2021
110
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)
Chairman
of
the
Board
and
Trustee
Chairman
of
the
Board
since
January
2023
and
Trustee
since
2007
129
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
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)
Trustee
Since
2013
118
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
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
154
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.;
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;
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
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
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
155
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
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
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
156
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
Schedule
of
Investments
The
Trust
files
a
complete
schedule
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
04/23
©
2023
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,
2023
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franklintempleton.com
Annual
Report
1
SHAREHOLDER
LETTER
Dear
Shareholder:
During
the
12
months
ended
February
28,
2023,
the
U.S.
economy
showed
mixed
results
as
it
continued
to
recover
from
the
COVID-19
pandemic
amid
declining
unemployment,
rising
wages
and
higher
personal
consumption.
Although
U.S.
gross
domestic
product
contracted
in
2022’s
first
and
second
quarters
given
declines
in
inventory
and
business
investment,
it
grew
in
the
remainder
of
the
year
as
the
trade
deficit
narrowed
and
consumer
spending
continued
to
expand.
Inflation
rose
through
June
2022,
largely
due
to
pandemic-related
supply-chain
issues
and
higher
energy
prices
exacerbated
by
Russia’s
invasion
of
Ukraine.
However,
inflation
eased
later
in
the
period
due
to
intervention
by
the
U.S.
Federal
Reserve
(Fed)
and
falling
commodity
prices.
To
combat
high
inflation,
the
Fed
ended
monthly
asset
purchases
in
March
2022
and
raised
the
federal
funds
rate
at
every
meeting
during
the
12-month
reporting
period,
increasing
it
by
a
total
of
4.50%
(from
a
range
of
0.00%–
0.25%
to
4.50%–4.75%
by
period-end).
The
Fed
also
stated
its
intention
to
continue
reducing
its
U.S.
Treasury,
government
agency
debt
and
agency
mortgage-backed
securities
holdings,
and
it
anticipated
ongoing
federal
funds
rate
increases
would
be
appropriate
to
return
inflation
to
its
2%
goal.
During
the
12-month
period,
municipal
bonds,
as
measured
by
the
Bloomberg
Municipal
Bond
Index,
posted
a
-5.10%
total
return,
influenced
by
fixed
income
market
volatility
and
tighter
monetary
policy,
resulting
in
net
outflows
from
municipals,
though
demand
has
been
strong
so
far
in
2023.
1
Despite
mixed
signs
from
the
U.S.
economy,
municipal
bond
fundamentals
remained
strong
due
to
prudent
fiscal
management
and
many
issuers
reporting
budget
surpluses
for
2022
in
addition
to
federal
government
transfers.
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
often
diversification
from
other
types
of
investments.
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,
as
do
mutual
fund
share
prices.
As
always,
we
recommend
investors
consult
their
financial
professionals
for
up-to-date
advice
on
their
holdings.
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
Templeton
tax-free
investment.
Sincerely,
Gregory
E.
Johnson
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,
2023,
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
Schedules
of
Investments
53
Financial
Statements
144
Notes
to
Financial
Statements
154
Report
of
Independent
Registered
Public
Accounting
Firm
172
Tax
Information
173
Board
Members
and
Officers
174
Shareholder
Information
179
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,
2023,
the
U.S.
Federal
Reserve
(Fed)
continued
to
battle
surging
inflation,
which
started
to
come
down
from
its
peak
of
9.1%
year-
over-year
in
June
2022.
After
hiking
the
federal
funds
rate
by
75
basis
points
(bps)
at
each
of
its
meetings
from
May
through
November
2022,
the
Fed
decreased
the
size
of
its
increases
to
50
bps
in
December
and
25
bps
in
February
2023.
Despite
investor
optimism
late
in
2022
that
peak
hawkishness
had
been
reached,
a
surprisingly
resilient
labor
market
in
early
2023
dampened
confidence
that
inflation
would
quickly
return
to
the
Fed’s
2%
target.
The
municipal
bond
(muni)
market
witnessed
a
very
challenging
year
in
2022
as
the
Fed’s
monetary
policy
tightening
put
downward
pressure
on
this
long-duration
sector.
High
levels
of
volatility
resulted
in
significant
outflows
from
muni
retail
vehicles
until
the
end
of
2022.
The
first
two
months
of
2023
saw
a
reversal
of
this
trend,
with
strong
investor
demand
meeting
reduced
supply
and
leading
to
positive
absolute
returns
year-to-date.
Credit
fundamentals
remained
strong,
as
many
issuers
benefited
from
federal
aid
received
during
the
COVID-19
crisis
and
from
the
subsequent
economic
recovery.
For
the
12-month
period,
U.S.
fixed
income
sectors
saw
mixed
performance
relative
to
equities,
as
measured
by
the
Standard
&
Poor’s
®
500
Index,
which
posted
a
-7.72%
total
return
for
the
period.
1
Investment-grade
munis,
as
measured
by
the
Bloomberg
Municipal
Bond
Index,
posted
a
-5.10%
total
return,
while
U.S.
Treasuries,
as
measured
by
the
Bloomberg
U.S.
Treasury
Index,
posted
a
-10.08%
total
return,
and
investment-grade
corporate
bonds,
as
measured
by
the
Bloomberg
U.S.
Corporate
Investment
Grade
Index,
posted
a
-10.43%
total
return.
1
The
foregoing
information
reflects
our
analysis
and
opinions
as
of
February
28,
2023.
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,
2023,
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,
2023.
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
$10.64
on
February
28,
2022,
to
$9.60
on
February
28,
2023.
The
Fund’s
Class
A
shares
paid
dividends
totaling
26.9838
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
2.57%,
based
on
an
annualization
of
February’s
2.1336
cents
per
share
dividend
and
the
maximum
offering
price
of
$9.97
on
February
28,
2023.
An
investor
in
the
2023
maximum
combined
effective
federal
and
Arizona
personal
income
tax
bracket
of
43.55%
(including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
4.55%
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
Arizona’s
economy
slowed
during
the
12-month
period,
although
growth
rebounded
in
2022’s
third
quarter.
Strong
employment
growth
resulted
in
nearly
all
of
the
state’s
major
industries
recovering
all
jobs
lost
during
the
first
months
of
the
COVID-19
pandemic.
The
state’s
unemployment
rate
began
the
period
at
3.6%
and
ended
at
3.7%,
compared
with
the
3.6%
national
rate.
Arizona’s
fiscal
year
(FY)
2022,
which
ended
in
June
2022,
generated
a
significant
surplus
amid
strong
revenue
collections
and
a
court
ruling
that
struck
down
a
voter-approved
tax
increase.
In
June
2022,
the
governor
signed
a
FY
2023
budget
that
eliminated
the
statewide
personal
property
tax.
In
addition,
Arizona
taxpayers
began
paying
a
flat
2.5%
state
income
tax.
Arizona’s
net
tax-supported
debt
was
$565
per
capita
and
1.0%
of
personal
income,
below
the
$1,179
and
2.1%
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
above-average
economic
growth
and
strengthening
reserves,
lower
debt
levels,
below
average
fixed
costs
and
demonstrated
budget
conservatism.
According
to
Moody’s,
challenges
included
constitutional
restrictions
that
limit
the
state’s
financial
flexibility.
Moody’s
stable
outlook
reflected
its
anticipation
of
Arizona’s
continued
sufficient
reserves
and
moderate
leverage.
*
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
2/28/23
%
of
Total
Investments*
Education
26.56%
Utilities
20.01%
Health
Care
14.53%
Transportation
11.43%
Special
Tax
11.12%
Housing
7.68%
Industrial
Dev.
Revenue
and
Pollution
Control
5.07%
Local
3.06%
Refunded
0.54%
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,
States
–
US:
Debt,
pension
and
OPEB
liabilities
all
up
in
fiscal
2021
,
9/7/22.
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
Schedule
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,
2023,
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,
2023
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
2/28/23
1
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
returns
include
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
-7.24%
-10.72%
5-Year
+3.85%
-0.01%
10-Year
+14.73%
+1.00%
Advisor
1-Year
-6.91%
-6.91%
5-Year
+4.97%
+0.97%
10-Year
+16.57%
+1.54%
Share
Class
Distribution
Rate
6
Taxable
Equivalent
Distribution
Rate
7
30-Day
Standardized
Yield
8
Taxable
Equivalent
30-Day
Standardized
Yield
7
A
2.57%
4.55%
3.05%
5.40%
Advisor
2.89%
5.12%
3.42%
6.06%
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
1
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
(2/28/13–2/28/23)
Advisor
Class
(2/28/13–2/28/23)
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.
Gross
expenses
are
the
Fund’s
total
annual
operating
expenses
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Net
expenses
are
capped
under
a
contrac-
tual
agreement,
which
cannot
be
terminated
prior
to
6/30/23
without
Board
consent.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
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
2/28/23.
7.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
12/20/22
for
the
maximum
combined
effective
federal
and
Arizona
personal
income
tax
rate
of
43.55%,
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:
FactSet.
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
(3/1/22–2/28/23)
Share
Class
Net
Investment
Income
A
$0.269838
A1
$0.284535
C
$0.229635
R6
$0.297654
Advisor
$0.294254
Total
Annual
Operating
Expenses
10
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
9/1/22
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$999.90
$4.17
$1,020.62
$4.22
0.84%
A1
$1,000
$1,001.70
$3.43
$1,021.37
$3.46
0.69%
C
$1,000
$997.90
$6.10
$1,018.69
$6.16
1.23%
R6
$1,000
$1,002.30
$2.79
$1,022.01
$2.81
0.56%
Advisor
$1,000
$1,002.20
$2.92
$1,021.88
$2.95
0.59%
11
franklintempleton.com
Annual
Report
Portfolio
Composition
2/28/23
%
of
Total
Investments*
Health
Care
20.79%
Local
19.31%
Utilities
13.82%
Education
12.40%
Special
Tax
6.68%
Transportation
6.47%
Housing
5.32%
Lease
4.87%
Refunded
4.61%
Industrial
Dev.
Revenue
and
Pollution
Control
4.59%
State
General
Obligation
1.14%
Franklin
Colorado
Tax-Free
Income
Fund
This
annual
report
for
Franklin
Colorado
Tax-Free
Income
Fund
covers
the
fiscal
year
ended
February
28,
2023.
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 $11.40
on
February
28,
2022,
to $10.26
on
February
28,
2023.
The
Fund’s
Class
A
shares
paid
dividends
totaling 27.0809
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
2.44%,
based
on
an
annualization
of
February's 2.1705
cents
per
share
dividend
and
the
maximum
offering
price
of
$10.66
on
February
28,
2023.
An
investor
in
the 2023 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 4.46%
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
Colorado’s
economy
slowed
during
the
12-month
period,
although
growth
rebounded
in
the
third
quarter
of
2022.
Colorado’s
economy
benefits
from
a
relatively
young,
educated
workforce
and
a
diverse
mix
of
technology,
bioscience
and
professional
services
industries
located
along
the
Front
Range
region.
The
state
also
has
significant,
albeit
volatile,
tourism
and
energy
sectors.
Colorado’s
unemployment
rate
began
the
period
at
3.6%
and
ended
at
2.9%,
compared
with
the
3.6%
national
rate.
Colorado's
financial
position
has
improved
in
recent
years
because
of
stronger-than-expected
revenue
performance
and
the
availability
of
significant
federal
pandemic
relief
funds.
The
state's
strengthened
reserve
and
liquidity
position
will
increase
budgetary
flexibility
under
an
economic
downturn.
Colorado’s
net
tax-supported
debt
was
$874
per
capita
and
1.3%
of
personal
income,
below
the
$1,179
and
2.1%
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
strong
economic
fundamentals,
above-average
resident
income
levels
and
moderate
leverage.
According
to
Moody’s,
credit
challenges
include
a
complex
system
of
constitutional
revenue
limits
and
voter
initiatives
that
constrain
revenue
growth.
Moody’s
stable
outlook
reflected
its
assessment
of
Colorado’s
strong
economic
fundamentals
and
sound
fiscal
management.
*
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,
States
–
US:
Debt,
pension
and
OPEB
liabilities
all
up
in
fiscal
2021
,
9/7/22.
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
Schedule
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,
2023,
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,
2023
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
2/28/23
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
-7.63%
-11.10%
5-Year
+3.34%
-0.11%
10-Year
+13.29%
+0.87%
Advisor
1-Year
-7.40%
-7.40%
5-Year
+4.56%
+0.90%
10-Year
+15.32%
+1.44%
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
2.44%
4.46%
3.09%
3.08%
5.65%
5.64%
Advisor
2.77%
5.07%
3.47%
3.46%
6.35%
6.33%
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
1
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
(2/28/13–
2/28/23
)
Advisor
Class
(2/28/13–
2/28/23
)
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.
Gross
expenses
are
the
Fund’s
total
annual
operating
expenses
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Net
expenses
are
capped
under
a
contrac-
tual
agreement,
which
cannot
be
terminated
prior
to
6/30/23
without
Board
consent.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
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
2/28/23.
7.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
12/20/22
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.
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:
FactSet.
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
(3/1/22–2/28/23)
Share
Class
Net
Investment
Income
A
$0.270809
A1
$0.286579
C
$0.227910
R6
$0.301594
Advisor
$0.297060
Total
Annual
Operating
Expenses
10
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
9/1/22
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$998.10
$4.27
$1,020.52
$4.32
0.86%
A1
$1,000
$998.80
$3.53
$1,021.26
$3.57
0.71%
C
$1,000
$996.10
$6.21
$1,018.57
$6.28
1.25%
R6
$1,000
$999.50
$2.85
$1,021.95
$2.88
0.57%
Advisor
$1,000
$999.30
$3.04
$1,021.76
$3.07
0.61%
17
franklintempleton.com
Annual
Report
Portfolio
Composition
2/28/23
%
of
Total
Investments*
Education
35.65%
Health
Care
21.28%
Transportation
12.79%
Housing
8.20%
State
General
Obligation
6.18%
Local
6.04%
Special
Tax
4.85%
Refunded
2.64%
Utilities
1.97%
Lease
0.40%
Franklin
Connecticut
Tax-Free
Income
Fund
This
annual
report
for
Franklin
Connecticut
Tax-Free
Income
Fund
covers
the
fiscal
year
ended
February
28,
2023
.
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
$9.85
on
February
28,
2022,
to
$8.86
on
February
28,
2023.
The
Fund’s
Class
A
shares
paid
dividends
totaling
21.7609
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
2.32%,
based
on
an
annualization
of
February’s
1.7827
cents
per
share
dividend
and
the
maximum
offering
price
of
$9.21
on
February
28,
2023.
An
investor
in
the
2023
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
4.44%
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
Connecticut’s
uneven
economic
recovery
from
the
COVID-
19-induced
downturn
strengthened
over
the
12-month
reporting
period.
One
of
the
nation’s
wealthiest
states,
based
on
per
capita
income,
with
a
large
and
diverse
economy,
Connecticut
has
nonetheless
been
challenged
by
a
deteriorating
demographic
trajectory.
The
state’s
unemployment
rate
began
the
period
at
4.6%
and
ended
at
4.0%,
compared
with
the
3.6%
national
rate.
Connecticut’s
governor
signed
a
fiscal
year
2023
budget
adjustment
that
included
major
tax
cuts
and
a
built-in
surplus
to
fund
the
state’s
pension
plan.
Connecticut’s
net
tax-supported
debt
was
$8,014
per
capita
and
9.8%
of
personal
income,
above
the
$1,179
and
2.1%
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
that
the
state
benefited
from
high
income
levels,
strong
governance
and
a
willingness
to
make
mid-year
budget
adjustments.
According
to
Moody’s,
Connecticut’s
challenges
include
high
fixed
costs
for
debt
service,
pension
and
post-
employment
benefits,
vulnerability
to
the
impact
of
financial
market
fluctuations
on
capital
gains
and
employment
and
a
declining
and
aging
population.
Moody’s
stable
outlook
reflects
its
view
of
Connecticut’s
large
reserves
and
strong
provisions
to
promote
fiscal
discipline.
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.
*
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,
States
–
US:
Debt,
pension
and
OPEB
liabilities
all
up
in
fiscal
2021
,
9/7/22.
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
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
80
.
Franklin
Connecticut
Tax-Free
Income
Fund
18
franklintempleton.com
Annual
Report
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,
2023,
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,
2023
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
2/28/23
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
-7.84%
-11.30%
5-Year
+0.21%
-0.72%
10-Year
+5.46%
+0.15%
Advisor
1-Year
-7.63%
-7.63%
5-Year
+1.18%
+0.24%
10-Year
+7.15%
+0.69%
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
2.32%
4.44%
3.10%
2.92%
5.94%
5.59%
Advisor
2.65%
5.08%
3.49%
3.30%
6.68%
6.32%
See
page
21
for
Performance
Summary
footnotes.
Franklin
Connecticut
Tax-Free
Income
Fund
Performance
Summary
20
franklintempleton.com
Annual
Report
See
page
19
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
1
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
(2/28/13–
2/28/2
3
)
Advisor
Class
(2/28/13–
2/28/2
3
)
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.
Gross
expenses
are
the
Fund’s
total
annual
operating
expenses
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
Net
expenses
reflect
contractual
fee
waivers,
expense
caps
and/or
reimbursements,
which
cannot
be
terminated
prior
to
6/30/23
without
Board
consent.
Additional
amounts
may
be
voluntarily
waived
and/or
reimbursed
and
may
be
modified
or
discontinued
at
any
time
without
notice.
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
2/28/23.
7.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
12/20/22
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.
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:
FactSet.
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
(3/1/22–2/28/23)
Share
Class
Net
Investment
Income
A
$0.217609
A1
$0.231157
C
$0.181047
R6
$0.243512
Advisor
$0.240301
Total
Annual
Operating
Expenses
10
Share
Class
With
Fee
Waiver
Without
Fee
Waiver
A
0.90%
0.98%
Advisor
0.65%
0.73%
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
9/1/22
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,003.80
$4.48
$1,020.33
$4.51
0.90%
A1
$1,000
$1,004.50
$3.73
$1,021.07
$3.76
0.75%
C
$1,000
$1,001.70
$6.43
$1,018.37
$6.48
1.29%
R6
$1,000
$1,005.20
$3.10
$1,021.70
$3.13
0.62%
Advisor
$1,000
$1,005.00
$3.24
$1,021.57
$3.26
0.65%
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,
2023
.
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,
decreased
from
$11.43
on
February
28,
2022,
to
$10.30
on
February
28,
2023.
The
Fund’s
Class
A
shares
paid
dividends
totaling
28.2208
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
2.58%,
based
on
an
annualization
of
February’s
2.2961
cents
per
share
dividend
and
the
maximum
offering
price
of
$10.70
on
February
28,
2023.
An
investor
in
the
2023
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
4.70%
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
slowed
as
high
inflation
and
rising
interest
rates
moderated
business
activity.
The
Michigan
economy
is
vulnerable
to
economic
cycles
because
of
its
large
automotive
industry.
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
4.2%
and
ended
at
4.3%,
compared
with
the
3.6%
national
rate.
Improving
revenue
conditions
and
substantial
direct
aid
from
the
federal
government
bolstered
the
state’s
liquidity.
Michigan’s
net
tax-
supported
debt
was
$833
per
capita
and
1.5%
of
personal
income,
below
the
$1,179
and
2.1%
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
of
the
state’s
strong
budgetary
reserves,
available
liquidity
and
effective
governance
practices.
According
to
Moody’s,
credit
challenges
include
dependence
upon
the
automotive
manufacturing
industry,
exposure
to
financially
stressed
local
governments
and
elevated
levels
of
retirement
benefit
liabilities.
Moody’s
stable
outlook
reflected
its
assessment
that
Michigan’s
governance
practices
make
the
state
likely
to
respond
rapidly
to
developing
economic
or
fiscal
downturns
and
because
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
2/28/23
%
of
Total
Investments*
Local
28.91%
Education
15.04%
Health
Care
15.03%
Housing
9.34%
Lease
7.90%
Utilities
6.34%
Transportation
5.77%
Refunded
4.73%
Special
Tax
4.25%
Industrial
Dev.
Revenue
and
Pollution
Control
2.45%
State
General
Obligation
0.24%
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,
States
–
US:
Debt,
pension
and
OPEB
liabilities
all
up
in
fiscal
2021
,
9/7/22.
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
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
88
.
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,
2023,
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,
2023
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
2/28/23
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
-7.43%
-10.90%
5-Year
+4.10%
+0.04%
10-Year
+13.12%
+0.85%
Advisor
1-Year
-7.26%
-7.26%
5-Year
+5.13%
+1.01%
10-Year
+14.93%
+1.40%
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
2.58%
4.70%
2.89%
2.89%
5.26%
5.26%
Advisor
2.90%
5.28%
3.26%
3.25%
5.93%
5.91%
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
(2/28/13–2/28/23)
Advisor
Class
(2/28/13–2/28/23)
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.
Gross
expenses
are
the
Fund’s
total
annual
operating
expenses
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Net
expenses
are
capped
under
a
contrac-
tual
agreement,
which
cannot
be
terminated
prior
to
6/30/23
without
Board
consent.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
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
2/28/23.
7.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
12/20/22
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.
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:
FactSet.
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
(3/1/22–2/28/23)
Share
Class
Net
Investment
Income
A
$0.282208
A1
$0.298027
C
$0.238865
R6
$0.312806
Advisor
$0.308552
Total
Annual
Operating
Expenses
10
Share
Class
A
0.83%
Advisor
0.58%
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
9/1/22
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$998.70
$4.16
$1,020.64
$4.20
0.84%
A1
$1,000
$999.50
$3.41
$1,021.38
$3.45
0.69%
C
$1,000
$996.70
$6.08
$1,018.70
$6.15
1.23%
R6
$1,000
$1,000.10
$2.73
$1,022.06
$2.76
0.55%
Advisor
$1,000
$999.90
$2.90
$1,021.89
$2.93
0.59%
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,
2023.
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
$12.20
on
February
28,
2022,
to
$11.03
on
February
28,
2023.
The
Fund’s
Class
A
shares
paid
dividends
totaling
27.3385
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
2.41%,
based
on
an
annualization
of
February’s
2.2993
cents
per
share
dividend
and
the
maximum
offering
price
of
$11.46
on
February
28,
2023.
An
investor
in
the
2023
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
4.88%
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,
Minnesota’s
economy
slowed
and
lagged
the
national
expansion
rate,
although
growth
rebounded
in
2022’s
third
quarter.
Historically,
the
state
has
had
a
very
low
unemployment
rate
and
high
labor
force
participation
rate,
supported
by
a
diverse
economy.
The
state’s
unemployment
rate
began
the
period
at
2.6%
and
ended
at
3.0%,
compared
with
the
3.6%
national
rate.
Minnesota’s
strong
revenues
and
controlled
spending
are
expected
to
result
in
further
growth
in
its
fund
balance
and
liquidity
levels.
Minnesota’s
net
tax-supported
debt
was
$1,462
per
capita
and
2.2%
of
personal
income,
above
the
$1,179
and
2.1%
national
medians,
respectively.
3
Independent
credit
rating
agency
Moody’s
Investors
Service
upgraded
its
rating
on
Minnesota’s
general
obligations
bonds
to
Aaa
from
Aa1.
Simultaneous
with
the
upgrade
in
the
rating,
Moody’s
also
revised
the
outlook
for
Minnesota
to
stable
from
positive.
4
The
rating
reflected
Moody’s
view
that
the
state’s
strong
record
of
prudent
governance,
which
has
driven
growth
in
financial
reserves,
and
strong
management
will
keep
its
cost
burdens
among
the
lowest
in
the
U.S.
According
to
Moody’s,
challenges
facing
the
state
include
a
history
of
political
gridlock
that
has
led
to
structural
imbalances
and
population
trends
including
recent
declines
in
migration
to
the
state.
*Does
not
include
cash
and
cash
equivalents.
Portfolio
Composition
2/28/23
%
of
Total
Investments*
Local
33.48%
Health
Care
17.64%
Education
10.77%
Housing
9.22%
Utilities
8.64%
Transportation
6.10%
Other
Revenue
Bonds
4.10%
Lease
3.48%
State
General
Obligation
2.28%
Refunded
2.13%
Special
Tax
1.50%
Industrial
Dev.
Revenue
and
Pollution
Control
0.66%
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,
States
–
US:
Debt,
pension
and
OPEB
liabilities
all
up
in
fiscal
2021
,
9/7/22.
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
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
100
.
Franklin
Minnesota
Tax-Free
Income
Fund
30
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
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,
2023,
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,
2023
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
2/28/23
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
-7.35%
-10.82%
5-Year
+2.52%
-0.27%
10-Year
+11.21%
+0.68%
Advisor
1-Year
-7.11%
-7.11%
5-Year
+3.65%
+0.72%
10-Year
+13.11%
+1.24%
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
2.41%
4.88%
2.71%
2.70%
5.49%
5.47%
Advisor
2.74%
5.55%
3.06%
3.05%
6.20%
6.18%
See
page
33
for
Performance
Summary
footnotes.
Franklin
Minnesota
Tax-Free
Income
Fund
Performance
Summary
32
franklintempleton.com
Annual
Report
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
1
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
(2/28/13–2/28/23)
Advisor
Class
(2/28/13–2/28/23)
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.
Gross
expenses
are
the
Fund’s
total
annual
operating
expenses
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Net
expenses
are
capped
under
a
contrac-
tual
agreement,
which
cannot
be
terminated
prior
to
6/30/23
without
Board
consent.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
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
2/28/23.
7.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
12/20/22
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.
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:
FactSet.
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
(3/1/22–2/28/23)
Share
Class
Net
Investment
Income
A
$0.273385
A1
$0.290410
C
$0.227748
R6
$0.307845
Advisor
$0.301562
Total
Annual
Operating
Expenses
10
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
9/1/22
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,004.10
$4.19
$1,020.61
$4.23
0.84%
A1
$1,000
$1,003.90
$3.43
$1,021.37
$3.46
0.69%
C
$1,000
$1,002.00
$6.13
$1,018.67
$6.18
1.23%
R6
$1,000
$1,004.70
$2.70
$1,022.10
$2.72
0.54%
Advisor
$1,000
$1,005.30
$2.94
$1,021.86
$2.97
0.59%
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,
2023
.
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 $12.54
on
February
28,
2022,
to $11.29
on
February
28,
2023.
The
Fund’s
Class
A
shares
paid
dividends
totaling 30.1573
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
2.48%,
based
on
an
annualization
of
February's 2.4199
cents
per
share
dividend
and
the
maximum
offering
price
of
$11.73
on
February
28,
2023.
An
investor
in
the 2023 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 4.49%
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
slowed
and
lagged
the
U.S.
national
growth
rate,
despite
a
slight
rebound
in
2022’s
third
quarter.
Ohio
trailed
the
nation
in
job
recovery
from
the
COVID-19
pandemic,
with
weak
employment
growth
in
the
leisure
and
hospitality,
education
and
health
care
and
government
sectors.
Ohio’s
unemployment
rate
began
the
period
at
4.0%
and
ended
at
3.9%,
compared
with
the
3.6%
national
rate.
Ohio
recorded
consecutive
years
of
record
budget
surpluses
and
forecasted
another
surplus
for
the
2023
fiscal
year,
allowing
the
state
to
manage
budget
challenges.
Ohio’s
net
tax-supported
debt
was
$1,718
per
capita
and
3.0%
of
personal
income,
above
the
$1,179
and
2.1%
national
medians,
respectively.
3
Independent
credit
rating
agency
Moody’s
Investors
Service
maintained
the
state’s
general
obligation
bonds’
Aa1
rating
with
a
positive
outlook.
4
The
rating
reflected
Moody’s
view
of
Ohio’s
strong
budgetary
and
financial
management,
sound
levels
of
reserves,
affordable
fixed
costs
and
below-average
long-term
debt.
According
to
Moody’s,
Ohio’s
challenges
include
below-average
economic
growth,
compounded
by
demographic
and
population
trends
that
may
contribute
to
relatively
slower
expansion.
Moody’s
positive
outlook
reflected
the
state’s
improved
financial
outlook
and
new
economic
development
that
could
diversify
the
economy,
improve
growth
and
strengthen
demographic
trends.
*Does
not
include
cash
and
cash
equivalents.
Portfolio
Composition
2/28/23
%
of
Total
Investments*
Local
27.14%
Education
15.58%
Health
Care
14.62%
Utilities
11.20%
Refunded
7.18%
Housing
6.52%
Transportation
6.50%
Industrial
Dev.
Revenue
and
Pollution
Control
3.76%
State
General
Obligation
2.79%
Lease
2.20%
Special
Tax
2.05%
Other
Revenue
Bonds
0.46%
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,
States
–
US:
Debt,
pension
and
OPEB
liabilities
all
up
in
fiscal
2021
,
9/7/22.
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
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
112
.
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,
2023,
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,
2023
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
2/28/23
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
-7.57%
-11.03%
5-Year
+2.75%
-0.22%
10-Year
+15.70%
+1.08%
Advisor
1-Year
-7.33%
-7.33%
5-Year
+3.97%
+0.78%
10-Year
+17.76%
+1.65%
Share
Class
Distribution
Rate
6
Taxable
Equivalent
Distribution
Rate
7
30-Day
Standardized
Yield
8
Taxable
Equivalent
30-Day
Standardized
Yield
7
A
2.48%
4.49%
2.89%
5.23%
Advisor
2.80%
5.07%
3.26%
5.90%
See
page
39
for
Performance
Summary
footnotes.
Franklin
Ohio
Tax-Free
Income
Fund
Performance
Summary
38
franklintempleton.com
Annual
Report
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
1
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
(2/28/13–2/28/23)
Advisor
Class
(2/28/13–2/28/23)
See
page
39
for
Performance
Summary
footnotes.
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.
Gross
expenses
are
the
Fund’s
total
annual
operating
expenses
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Net
expenses
are
capped
under
a
contrac-
tual
agreement,
which
cannot
be
terminated
prior
to
6/30/23
without
Board
consent.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
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
2/28/23.
7.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
12/20/22
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.
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:
FactSet.
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
(3/1/22–2/28/23)
Share
Class
Net
Investment
Income
A
$0.301573
A1
$0.318894
C
$0.254355
R6
$0.335351
Advisor
$0.330386
Total
Annual
Operating
Expenses
10
Share
Class
A
0.81%
Advisor
0.56%
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
9/1/22
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,001.70
$4.08
$1,020.72
$4.12
0.82%
A1
$1,000
$1,001.50
$3.33
$1,021.47
$3.36
0.67%
C
$1,000
$998.80
$6.01
$1,018.78
$6.07
1.21%
R6
$1,000
$1,003.10
$2.63
$1,022.17
$2.66
0.53%
Advisor
$1,000
$1,002.90
$2.83
$1,021.97
$2.86
0.57%
41
franklintempleton.com
Annual
Report
Portfolio
Composition
2/28/23
%
of
Total
Investments*
Local
23.51%
Education
17.36%
Health
Care
16.62%
Transportation
12.20%
Housing
7.60%
Utilities
5.91%
Refunded
5.66%
Special
Tax
4.39%
State
General
Obligation
3.73%
Lease
2.07%
Industrial
Dev.
Revenue
and
Pollution
Control
0.64%
Other
Revenue
Bonds
0.31%
Franklin
Oregon
Tax-Free
Income
Fund
This
annual
report
for
Franklin
Oregon
Tax-Free
Income
Fund
covers
the
fiscal
year
ended
February
28,
2023
.
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
$11.45
on
February
28,
2022,
to
$10.35
on
February
28,
2023.
The
Fund’s
Class
A
shares
paid
dividends
totaling
26.8194
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
2.59%,
based
on
an
annualization
of
February’s
2.3173
cents
per
share
dividend
and
the
maximum
offering
price
of
$10.75
on
February
28,
2023.
An
investor
in
the
2023
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
5.25%
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,
Oregon’s
economy
slowed
as
inflationary
pressures
mounted,
although
growth
rebounded
in
2022’s
third
quarter.
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
3.7%
and
ended
at
4.7%,
compared
with
the
3.6%
national
rate.
The
state’s
strong
revenue
growth
in
recent
years
led
to
a
healthy
liquidity
position
that
increased
budget
flexibility
through
the
current
inflationary
period.
The
governor’s
powers
to
control
spending,
capable
budget
management
and
low
overall
fixed
costs
allow
financial
flexibility.
Growing
pension
costs
and
a
concentrated
revenue
structure
increase
budget
uncertainty.
The
state’s
net
tax-supported
debt
was
$2,579
per
capita
and
4.3%
of
personal
income,
above
the
$1,179
and
2.1%
national
medians,
respectively.
3
Independent
credit
rating
agency
Moody’s
Investors
Service
maintained
Oregon’s
general
obligation
bonds’
Aa1
rating
with
a
stable
outlook,
reflecting
Moody’s
view
that
Oregon’s
budget
management
and
strong
liquidity
will
support
satisfactory
financial
flexibility.
4
According
to
Moody’s,
Oregon’s
challenges
include
unusually
high
reliance
on
economically
sensitive
personal
income
taxes,
governance
constraints
and
rapid
growth
in
pension
liabilities.
The
stable
outlook
reflects
Oregon’s
sound
budget
management
and
strong
liquidity,
which
offers
financial
flexibility
during
the
economic
recovery.
*
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,
States
–
US:
Debt,
pension
and
OPEB
liabilities
all
up
in
fiscal
2021
,
9/7/22.
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
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
126
.
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,
2023,
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,
2023
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
2/28/23
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
-7.27%
-10.75%
5-Year
+3.10%
-0.15%
10-Year
+11.41%
+0.70%
Advisor
1-Year
-7.12%
-7.12%
5-Year
+4.22%
+0.83%
10-Year
+13.19%
+1.25%
Share
Class
Distribution
Rate
6
Taxable
Equivalent
Distribution
Rate
7
30-Day
Standardized
Yield
8
Taxable
Equivalent
30-Day
Standardized
Yield
7
A
2.59%
5.25%
2.92%
5.92%
Advisor
2.92%
5.92%
3.28%
6.65%
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
1
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
(2/28/13–
2/28/2
3
)
Advisor
Class
(2/28/13–
2/28/23
)
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.
Gross
expenses
are
the
Fund’s
total
annual
operating
expenses
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Net
expenses
are
capped
under
a
contrac-
tual
agreement,
which
cannot
be
terminated
prior
to
6/30/23
without
Board
consent.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
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
2/28/23.
7.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
12/20/22
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.
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:
FactSet.
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
(3/1/22–2/28/23)
Share
Class
Net
Investment
Income
A
$0.268194
A1
$0.284076
C
$0.224713
R6
$0.298115
Advisor
$0.294622
Total
Annual
Operating
Expenses
10
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
9/1/22
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$998.30
$4.03
$1,020.76
$4.08
0.81%
A1
$1,000
$999.10
$3.29
$1,021.50
$3.33
0.66%
C
$1,000
$995.40
$5.96
$1,018.82
$6.03
1.20%
R6
$1,000
$999.70
$2.64
$1,022.15
$2.67
0.53%
Advisor
$1,000
$999.60
$2.79
$1,022.00
$2.82
0.56%
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,
2023
.
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 $9.64
on
February
28,
2022,
to $8.64
on
February
28,
2023.
The
Fund’s
Class
A
shares
paid
dividends
totaling 21.7057
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
2.50%,
based
on
an
annualization
of
February's 1.8694
cents
per
share
dividend
and
the
maximum
offering
price
of
$8.98
on
February
28,
2023.
An
investor
in
the 2023 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 4.45%
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
.
*
Does
not
include
cash
and
cash
equivalents.
Commonwealth
Update
During
the
12
months
under
review,
Pennsylvania’s
economic
recovery
slowed
as
inflationary
pressures
rose,
although
growth
rebounded
in
2022’s
third
quarter.
Though
it
has
a
very
large,
diverse
economic
base,
the
commonwealth’s
economy
has
performed
below
average
over
the
last
decade.
Pennsylvania’s
slow
growth
and
downward
demographic
trends
are
expected
to
negatively
impact
long-term
job
growth
and
economic
performance.
The
commonwealth’s
unemployment
rate
began
the
period
at
4.4%
and
ended
at
4.4%,
compared
with
the
3.6%
national
rate.
In
July
2022,
the
commonwealth
approved
a
$42.8
billion
budget
that
included
a
13%
increase
in
spending,
primarily
on
education
and
human
services.
Pennsylvania’s
revenues
have
been
strong,
leading
to
increased
budget
stabilization
reserves.
Pennsylvania’s
net
tax-supported
debt
was
$1,616
per
capita
and
2.5%
of
personal
income,
above
the
$1,179
and
2.1%
national
medians,
respectively.
3
Independent
credit
rating
agency
Moody’s
Investors
Service
maintained
the
commonwealth’s
general
obligation
bonds’
Aa3
rating
with
a
stable
outlook.
4
The
rating
reflected
Moody’s
view
of
the
commonwealth’s
above
average
leverage
and
fixed
cost
burdens
as
well
as
its
stable
and
healthy
liquidity.
According
to
Moody’s,
credit
challenges
include
elevated
fixed
costs
and
slim
budget
reserves.
Portfolio
Composition
2/28/23
%
of
Total
Investments*
Health
Care
22.87%
Education
22.76%
Local
13.88%
Transportation
9.85%
Utilities
8.53%
Refunded
7.61%
Housing
5.68%
Lease
3.31%
Special
Tax
3.28%
State
General
Obligation
1.70%
Other
Revenue
Bonds
0.53%
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,
States
–
US:
Debt,
pension
and
OPEB
liabilities
all
up
in
fiscal
2021
,
9/7/22.
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
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
137
.
Franklin
Pennsylvania
Tax-Free
Income
Fund
48
franklintempleton.com
Annual
Report
Moody’s
stable
outlook
reflected
its
positive
assessment
of
Pennsylvania’s
ability
to
manage
financial
challenges.
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
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,
2023,
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,
2023
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
2/28/23
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
-8.13%
-11.57%
5-Year
+1.23%
-0.52%
10-Year
+9.78%
+0.55%
Advisor
1-Year
-7.99%
-7.99%
5-Year
+2.32%
+0.46%
10-Year
+11.65%
+1.11%
Share
Class
Distribution
Rate
6
Taxable
Equivalent
Distribution
Rate
7
30-Day
Standardized
Yield
8
Taxable
Equivalent
30-Day
Standardized
Yield
7
A
2.50%
4.45%
3.21%
5.72%
Advisor
2.83%
5.04%
3.58%
6.38%
See
page
51
for
Performance
Summary
footnotes.
Franklin
Pennsylvania
Tax-Free
Income
Fund
Performance
Summary
50
franklintempleton.com
Annual
Report
See
page
51
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
1
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
(2/28/13–
2/28/2
3
)
Advisor
Class
(2/28/13–
2/28/23
)
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.
Gross
expenses
are
the
Fund’s
total
annual
operating
expenses
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Net
expenses
are
capped
under
a
contrac-
tual
agreement,
which
cannot
be
terminated
prior
to
6/30/23
without
Board
consent.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
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
2/28/23.
7.
Taxable
equivalent
distribution
rate
and
yield
assume
the
published
rates
as
of
12/20/22
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.
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:
FactSet.
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
(3/1/22–2/28/23)
Share
Class
Net
Investment
Income
A
$0.217057
A1
$0.230319
C
$0.180845
R6
$0.242718
Advisor
$0.239143
Total
Annual
Operating
Expenses
10
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
reimburse
ments,
for
Class
R6.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
9/1/22
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
Ending
Account
Value
2/28/23
Expenses
Paid
During
Period
9/1/22–2/28/23
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$998.60
$4.10
$1,020.70
$4.14
0.83%
A1
$1,000
$999.30
$3.35
$1,021.44
$3.39
0.68%
C
$1,000
$996.60
$6.04
$1,018.75
$6.10
1.22%
R6
$1,000
$1,000.00
$2.69
$1,022.10
$2.72
0.54%
Advisor
$1,000
$999.80
$2.85
$1,021.94
$2.88
0.57%
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
2023
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.64
$10.92
$11.24
$10.58
$10.52
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.27
0.25
0.27
0.29
0.16
Net
realized
and
unrealized
gains
(losses)
...........
(1.04)
(0.28)
(0.32)
0.67
0.05
Total
from
investment
operations
....................
(0.77)
(0.03)
(0.05)
0.96
0.21
Less
distributions
from:
Net
investment
income
..........................
(0.27)
(0.25)
(0.27)
(0.30)
(0.15)
Net
asset
value,
end
of
year
.......................
$9.60
$10.64
$10.92
$11.24
$10.58
Total
return
e
...................................
(7.24)%
(0.37)%
(0.43)%
9.24%
2.09%
Ratios
to
average
net
assets
f
Expenses
g
....................................
0.83%
0.81%
0.81%
0.81%
0.81%
Net
investment
income
...........................
2.79%
2.23%
2.46%
2.72%
3.12%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$212,662
$210,355
$173,930
$132,026
$44,516
Portfolio
turnover
rate
............................
27.77%
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,
2023
2022
2021
2020
a
2019
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.62
$10.90
$11.22
$10.56
$10.58
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.29
0.26
0.29
0.31
0.34
Net
realized
and
unrealized
gains
(losses)
...........
(1.04)
(0.28)
(0.32)
0.67
(0.01)
Total
from
investment
operations
....................
(0.75)
(0.02)
(0.03)
0.98
0.33
Less
distributions
from:
Net
investment
income
..........................
(0.28)
(0.26)
(0.29)
(0.32)
(0.35)
Net
asset
value,
end
of
year
.......................
$9.59
$10.62
$10.90
$11.22
$10.56
Total
return
d
...................................
(7.02)%
(0.22)%
(0.28)%
9.42%
3.18%
Ratios
to
average
net
assets
Expenses
e
....................................
0.68%
0.66%
0.66%
0.66%
0.66%
Net
investment
income
...........................
2.94%
2.39%
2.64%
2.87%
3.27%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$396,929
$526,131
$582,701
$672,061
$661,250
Portfolio
turnover
rate
............................
27.77%
17.24%
13.66%
11.37%
18.13%
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
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,
2023
2022
2021
2020
a
2019
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.81
$11.09
$11.42
$10.75
$10.75
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.23
0.20
0.23
0.26
0.29
Net
realized
and
unrealized
gains
(losses)
...........
(1.06)
(0.28)
(0.33)
0.67
(—)
d
Total
from
investment
operations
....................
(0.83)
(0.08)
(0.10)
0.93
0.29
Less
distributions
from:
Net
investment
income
..........................
(0.23)
(0.20)
(0.23)
(0.26)
(0.29)
Net
asset
value,
end
of
year
.......................
$9.75
$10.81
$11.09
$11.42
$10.75
Total
return
e
...................................
(7.69)%
(0.76)%
(0.81)%
8.70%
2.74%
Ratios
to
average
net
assets
Expenses
f
.....................................
1.22%
1.20%
1.20%
1.21%
1.21%
Net
investment
income
...........................
2.33%
1.80%
2.05%
2.32%
2.72%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$32,466
$48,833
$67,713
$80,562
$77,216
Portfolio
turnover
rate
............................
27.77%
17.24%
13.66%
11.37%
18.13%
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
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,
2023
2022
2021
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.66
$10.94
$11.26
$10.60
$10.60
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.30
0.28
0.30
0.33
0.36
Net
realized
and
unrealized
gains
(losses)
...........
(1.04)
(0.28)
(0.32)
0.67
(—)
d
Total
from
investment
operations
....................
(0.74)
—
(0.02)
1.00
0.36
Less
distributions
from:
Net
investment
income
..........................
(0.30)
(0.28)
(0.30)
(0.34)
(0.36)
Net
asset
value,
end
of
year
.......................
$9.62
$10.66
$10.94
$11.26
$10.60
Total
return
....................................
(6.96)%
(0.08)%
(0.15)%
9.53%
3.48%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.55%
0.53%
0.53%
0.54%
0.55%
Expenses
net
of
waiver
and
payments
by
affiliates
e
......
0.54%
0.52%
0.53%
f
0.53%
0.53%
Net
investment
income
...........................
3.06%
2.51%
2.75%
3.00%
3.40%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$19,946
$28,123
$21,450
$16,971
$12,562
Portfolio
turnover
rate
............................
27.77%
17.24%
13.66%
11.37%
18.13%
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
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
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,
2023
2022
2021
2020
a
2019
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.65
$10.94
$11.26
$10.60
$10.61
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.30
0.27
0.30
0.32
0.36
Net
realized
and
unrealized
gains
(losses)
...........
(1.04)
(0.29)
(0.32)
0.67
(0.01)
Total
from
investment
operations
....................
(0.74)
(0.02)
(0.02)
0.99
0.35
Less
distributions
from:
Net
investment
income
..........................
(0.29)
(0.27)
(0.30)
(0.33)
(0.36)
Net
asset
value,
end
of
year
.......................
$9.62
$10.65
$10.94
$11.26
$10.60
Total
return
....................................
(6.91)%
(0.21)%
(0.18)%
9.50%
3.36%
Ratios
to
average
net
assets
Expenses
d
....................................
0.57%
0.56%
0.56%
0.56%
0.56%
Net
investment
income
...........................
3.02%
2.48%
2.71%
2.97%
3.37%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$114,323
$178,256
$174,264
$124,881
$90,140
Portfolio
turnover
rate
............................
27.77
%
17.24%
13.66%
11.37%
18.13%
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
Schedule
of
Investments,
February
28,
2023
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
99.1%
Arizona
91.2%
Arizona
Department
of
Transportation
,
State
Highway
Fund
,
Revenue
,
2016
,
Refunding
,
5
%
,
7/01/36
.............................................
$
8,680,000
$
9,100,885
Arizona
Health
Facilities
Authority
,
HonorHealth
Obligated
Group,
Revenue,
2014
A,
Refunding,
5%,
12/01/39
......
2,820,000
2,866,783
HonorHealth
Obligated
Group,
Revenue,
2014
A,
Refunding,
5%,
12/01/42
......
6,715,000
6,792,988
Arizona
Industrial
Development
Authority
,
Academies
of
Math
&
Science
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
7/01/42
........................................................
2,045,000
2,068,742
Academies
of
Math
&
Science
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
7/01/51
........................................................
1,080,000
1,084,061
Arizona
Agribusiness
and
Equine
Center,
Inc.,
Revenue,
2017
A,
5%,
3/01/48
....
1,555,000
1,600,541
Ball
Charter
Schools
Obligated
Group,
Revenue,
2022,
Refunding,
2.65%,
7/01/26
740,000
702,573
Ball
Charter
Schools
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
7/01/31
...
550,000
551,987
Ball
Charter
Schools
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
7/01/41
...
2,000,000
1,766,673
Ball
Charter
Schools
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
7/01/51
...
2,340,000
1,943,863
BASIS
Schools,
Inc.
Obligated
Group,
Revenue,
2017
F,
Refunding,
5%,
7/01/47
..
3,350,000
3,415,378
Children's
National
Medical
Center
Obligated
Group,
Revenue,
2020
A,
4%,
9/01/40
865,000
835,865
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2019
A,
5%,
11/01/34
.......................................................
1,000,000
1,053,768
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2019
A,
5%,
11/01/36
.......................................................
1,235,000
1,285,160
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2019
A,
5%,
11/01/39
.......................................................
1,000,000
1,032,580
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2019
A,
5%,
11/01/44
.......................................................
6,645,000
6,775,579
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2020
A,
4%,
11/01/45
.......................................................
2,200,000
1,947,847
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2020
A,
4%,
11/01/50
.......................................................
7,055,000
6,063,494
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2021
A,
4%,
11/01/51
.......................................................
1,400,000
1,197,233
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2022
A,
4%,
11/01/42
.......................................................
1,650,000
1,495,068
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2022
A,
5%,
11/01/47
.......................................................
7,900,000
8,089,650
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2022
A,
4.25%,
11/01/52
.......................................................
3,500,000
3,113,925
Great
Lakes
Senior
Living
Communities
LLC,
Revenue,
2019
A,
5%,
1/01/38
.....
1,175,000
810,634
Great
Lakes
Senior
Living
Communities
LLC,
Revenue,
2019
A,
5%,
1/01/54
.....
1,250,000
756,579
Great
Lakes
Senior
Living
Communities
LLC,
Revenue,
Second
Tier,
2019
B,
5%,
1/01/36
........................................................
1,105,000
695,890
Great
Lakes
Senior
Living
Communities
LLC,
Revenue,
Second
Tier,
2019
B,
5%,
1/01/49
........................................................
3,500,000
1,878,815
Great
Lakes
Senior
Living
Communities
LLC,
Revenue,
Second
Tier,
2019
B,
5.125%,
1/01/54
.................................................
2,000,000
1,036,933
GreatHearts
Arizona
Obligated
Group,
Revenue,
2021
B,
4%,
7/01/31
..........
315,000
312,479
GreatHearts
Arizona
Obligated
Group,
Revenue,
2021
B,
4%,
7/01/41
..........
405,000
364,525
GreatHearts
Arizona
Obligated
Group,
Revenue,
2021
B,
4%,
7/01/52
..........
840,000
697,468
KIPP
Nashville
Obligated
Group,
Revenue,
2022
A,
5%,
7/01/47
..............
1,400,000
1,401,826
KIPP
Nashville
Obligated
Group,
Revenue,
2022
A,
5%,
7/01/62
..............
2,400,000
2,300,884
KIPP
New
York,
Inc.
Gerard
Facility,
Revenue,
2021
C,
3.25%,
7/01/31
.........
1,550,000
1,328,934
KIPP
New
York,
Inc.
Macombs
Facility,
Revenue,
2021
A,
5%,
7/01/32
..........
660,000
708,680
KIPP
New
York,
Inc.
Macombs
Facility,
Revenue,
2021
A,
4%,
7/01/34
..........
660,000
643,960
KIPP
New
York,
Inc.
Macombs
Facility,
Revenue,
2021
A,
4%,
7/01/36
..........
315,000
298,344
KIPP
New
York,
Inc.
Macombs
Facility,
Revenue,
2021
A,
4%,
7/01/41
..........
2,800,000
2,510,718
KIPP
New
York,
Inc.
Macombs
Facility,
Revenue,
2021
A,
4%,
7/01/51
..........
8,000,000
6,645,685
KIPP
New
York,
Inc.
Macombs
Facility,
Revenue,
2021
A,
4%,
7/01/61
..........
15,580,000
12,420,878
Franklin
Tax-Free
Trust
Schedule
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
Industrial
Development
Authority,
(continued)
Leman
Academy
of
Excellence
Obligated
Group,
Revenue,
2022
A,
Refunding,
4.5%,
7/01/54
........................................................
$
3,000,000
$
2,618,908
Phoenix
Children's
Hospital
Obligated
Group,
Revenue,
2020
A,
4%,
2/01/50
.....
2,540,000
2,280,575
Phoenix
Children's
Hospital
Obligated
Group,
Revenue,
2021
A,
Refunding,
3%,
2/01/41
........................................................
885,000
710,051
Provident
Group-NCCU
Properties
LLC,
Revenue,
2019
A,
BAM
Insured,
5%,
6/01/58
........................................................
6,250,000
6,631,537
Arizona
State
University
,
Revenue,
2015
B,
Refunding,
5%,
7/01/41
...............................
14,070,000
14,423,502
Revenue,
2015
D,
5%,
7/01/46
........................................
5,000,000
5,103,240
Revenue,
2016
C,
5%,
7/01/46
........................................
10,000,000
10,294,246
Revenue,
2017
B,
Refunding,
5%,
7/01/43
...............................
4,005,000
4,196,064
Revenue,
2019
A,
5%,
7/01/40
........................................
1,000,000
1,082,380
Carefree
Utilities
Community
Facilities
District
,
Town
of
Carefree
Water
System
,
Revenue
,
2021
,
4
%
,
7/01/51
.........................................
2,000,000
1,812,761
Central
Arizona
Water
Conservation
District
,
Revenue
,
2016
,
5
%
,
1/01/34
.........
1,000,000
1,042,151
City
of
Bullhead
,
Excise
Taxes
,
Revenue
,
2022
,
4
%
,
7/01/52
...................
2,885,000
2,603,757
City
of
Goodyear
,
Water
&
Sewer,
Revenue,
Sub.
Lien,
2020,
Refunding,
AGMC
Insured,
4%,
7/01/39
600,000
601,570
Water
&
Sewer,
Revenue,
Sub.
Lien,
2020,
AGMC
Insured,
4%,
7/01/45
.........
1,500,000
1,427,135
Water
&
Sewer,
Revenue,
Sub.
Lien,
Second
Series,
2020,
AGMC
Insured,
4%,
7/01/40
........................................................
650,000
643,311
Water
&
Sewer,
Revenue,
Sub.
Lien,
Second
Series,
2020,
AGMC
Insured,
4%,
7/01/45
........................................................
3,500,000
3,329,981
City
of
Lake
Havasu
City
,
Wastewater
System,
Revenue,
2015
B,
Refunding,
AGMC
Insured,
5%,
7/01/40
...
15,000,000
15,386,971
Wastewater
System,
Revenue,
2015
B,
Refunding,
AGMC
Insured,
5%,
7/01/43
...
9,155,000
9,364,496
City
of
Mesa
,
Utility
System,
Revenue,
2018,
4%,
7/01/38
..............................
1,425,000
1,432,336
Utility
System,
Revenue,
2018,
4%,
7/01/39
..............................
6,135,000
6,148,736
Utility
System,
Revenue,
2018,
5%,
7/01/42
..............................
6,700,000
7,101,270
Utility
System,
Revenue,
2019
A,
5%,
7/01/43
............................
2,500,000
2,671,083
Utility
System,
Revenue,
2022
C,
Refunding,
5%,
7/01/36
...................
5,000,000
5,815,171
City
of
Phoenix
Civic
Improvement
Corp.
,
Airport,
Revenue,
2017
A,
5%,
7/01/42
..................................
2,155,000
2,201,181
Airport,
Revenue,
2017
A,
5%,
7/01/47
..................................
12,935,000
13,136,566
Airport,
Revenue,
Junior
Lien,
2017
D,
Refunding,
4%,
7/01/40
...............
16,570,000
15,955,717
Airport,
Revenue,
Junior
Lien,
2019
A,
4%,
7/01/44
........................
4,000,000
3,790,140
Airport,
Revenue,
Junior
Lien,
2019
A,
5%,
7/01/44
........................
8,500,000
8,989,936
Airport,
Revenue,
Senior
Lien,
2018,
5%,
7/01/48
..........................
5,000,000
5,084,491
Excise
Tax,
Revenue,
2022,
5%,
7/01/46
................................
8,300,000
9,093,775
Phoenix
Sky
Harbor
International
Airport
Customer
Facility
Charges,
Revenue,
2019
A,
5%,
7/01/34
..................................................
2,500,000
2,710,829
Phoenix
Sky
Harbor
International
Airport
Customer
Facility
Charges,
Revenue,
2019
A,
5%,
7/01/37
..................................................
1,500,000
1,596,027
Phoenix
Sky
Harbor
International
Airport
Customer
Facility
Charges,
Revenue,
2019
A,
5%,
7/01/38
..................................................
8,420,000
8,939,259
Phoenix
Sky
Harbor
International
Airport
Customer
Facility
Charges,
Revenue,
2019
A,
4%,
7/01/45
..................................................
7,500,000
6,860,809
Wastewater,
Revenue,
Junior
Lien,
2018
A,
5%,
7/01/37
.....................
1,000,000
1,082,944
Wastewater,
Revenue,
Junior
Lien,
2018
A,
4%,
7/01/39
.....................
5,000,000
5,011,195
Water
System,
Revenue,
Junior
Lien,
2016,
Refunding,
5%,
7/01/39
............
5,000,000
5,215,224
Water
System,
Revenue,
Junior
Lien,
2020
B,
5%,
7/01/44
...................
7,500,000
8,140,353
Franklin
Tax-Free
Trust
Schedule
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
Yuma
,
Sales
Tax
,
Revenue
,
2022
,
BAM
Insured
,
4.25
%
,
7/15/42
........
$
3,250,000
$
3,220,458
Gilbert
Water
Resource
Municipal
Property
Corp.
,
Town
of
Gilbert
Waterworks
&
Sewer
System
,
Revenue,
Senior
Lien
,
2022
,
4
%
,
7/15/39
.........................
10,000,000
10,153,116
Glendale
Industrial
Development
Authority
,
People
of
Faith,
Inc.
Obligated
Group,
Revenue,
2020
A,
4%,
5/15/31
...........
400,000
361,772
People
of
Faith,
Inc.
Obligated
Group,
Revenue,
2020
A,
5%,
5/15/56
...........
5,500,000
4,649,413
Glendale
Municipal
Property
Corp.
,
City
of
Glendale
Excise
Tax,
Revenue,
2012
C,
Refunding,
5%,
7/01/38
.........
18,530,000
18,544,820
Industrial
Development
Authority
of
the
City
of
Phoenix
Arizona
(The)
,
Downtown
Phoenix
Student
Housing
II
LLC,
Revenue,
2019
A,
5%,
7/01/44
......
1,000,000
990,869
Downtown
Phoenix
Student
Housing
II
LLC,
Revenue,
2019
A,
5%,
7/01/49
......
1,995,000
1,943,567
Downtown
Phoenix
Student
Housing
II
LLC,
Revenue,
2019
A,
5%,
7/01/54
......
2,665,000
2,574,841
Downtown
Phoenix
Student
Housing
LLC,
Revenue,
2018
A,
Refunding,
5%,
7/01/25
1,015,000
1,031,212
Downtown
Phoenix
Student
Housing
LLC,
Revenue,
2018
A,
Refunding,
5%,
7/01/27
425,000
436,109
Downtown
Phoenix
Student
Housing
LLC,
Revenue,
2018
A,
Refunding,
5%,
7/01/30
700,000
721,399
Downtown
Phoenix
Student
Housing
LLC,
Revenue,
2018
A,
Refunding,
5%,
7/01/32
250,000
256,924
Downtown
Phoenix
Student
Housing
LLC,
Revenue,
2018
A,
Refunding,
5%,
7/01/33
600,000
614,327
Downtown
Phoenix
Student
Housing
LLC,
Revenue,
2018
A,
Refunding,
5%,
7/01/37
2,750,000
2,767,705
Downtown
Phoenix
Student
Housing
LLC,
Revenue,
2018
A,
Refunding,
5%,
7/01/42
11,550,000
11,310,976
GreatHearts
Arizona
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
7/01/36
.
4,065,000
4,126,115
GreatHearts
Arizona
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
7/01/41
.
1,225,000
1,234,901
GreatHearts
Arizona
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
7/01/46
.
1,335,000
1,340,038
Vista
College
Preparatory
Obligated
Group,
Revenue,
2018
A,
5%,
7/01/48
......
1,000,000
1,033,589
Industrial
Development
Authority
of
the
County
of
Pima
(The)
,
Christian
Care
Tucson,
Inc.,
Revenue,
Senior
Lien,
2017
A,
Pre-Refunded,
5%,
12/15/32
.......................................................
1,765,000
1,842,741
Christian
Care
Tucson,
Inc.,
Revenue,
Senior
Lien,
2017
A,
Pre-Refunded,
5%,
6/15/37
........................................................
2,240,000
2,338,663
a
La
Posada
at
Park
Centre,
Inc.
Obligated
Group,
Revenue,
144A,
2022
B-3,
5.125%,
11/15/29
.......................................................
3,000,000
2,985,489
TMC
HealthCare
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
4/01/40
....
1,040,000
964,273
TMC
HealthCare
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
4/01/41
....
1,360,000
1,253,995
TMC
HealthCare
Obligated
Group,
Revenue,
2021
A,
Refunding,
3%,
4/01/51
....
12,000,000
8,338,295
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
4,432,199
Yavapai
Community
Hospital
Association
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
8/01/36
............................................
1,310,000
1,353,454
Yavapai
Community
Hospital
Association
Obligated
Group,
Revenue,
2019,
Refunding,
4%,
8/01/38
............................................
1,510,000
1,459,188
Yavapai
Community
Hospital
Association
Obligated
Group,
Revenue,
2019,
Refunding,
4%,
8/01/43
............................................
3,000,000
2,710,970
La
Paz
County
Industrial
Development
Authority
,
Harmony
Public
Schools,
Revenue,
2018
A,
5%,
2/15/38
....................
1,000,000
1,005,609
Harmony
Public
Schools,
Revenue,
2018
A,
5%,
2/15/48
....................
1,000,000
976,677
Harmony
Public
Schools,
Revenue,
2021
A,
5%,
2/15/25
....................
90,000
90,587
Harmony
Public
Schools,
Revenue,
2021
A,
5%,
2/15/26
....................
95,000
96,157
Harmony
Public
Schools,
Revenue,
2021
A,
5%,
2/15/27
....................
75,000
76,389
Harmony
Public
Schools,
Revenue,
2021
A,
5%,
2/15/28
....................
80,000
82,146
Harmony
Public
Schools,
Revenue,
2021
A,
5%,
2/15/29
....................
110,000
113,584
Harmony
Public
Schools,
Revenue,
2021
A,
5%,
2/15/30
....................
100,000
103,594
Harmony
Public
Schools,
Revenue,
2021
A,
4%,
2/15/41
....................
430,000
365,879
Harmony
Public
Schools,
Revenue,
2021
A,
4%,
2/15/46
....................
345,000
278,610
Harmony
Public
Schools,
Revenue,
2021
A,
4%,
2/15/51
....................
580,000
451,646
Franklin
Tax-Free
Trust
Schedule
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
$
1,064,773
Maricopa
County
Industrial
Development
Authority
,
Banner
Health
Obligated
Group,
Revenue,
2019
F,
3%,
1/01/49
...............
5,000,000
3,663,964
Banner
Health
Obligated
Group,
Revenue,
A,
4%,
1/01/41
...................
9,630,000
9,171,612
Banner
Health
Obligated
Group,
Revenue,
A,
5%,
1/01/41
...................
37,590,000
39,161,856
Creighton
University,
Revenue,
2020,
5%,
7/01/47
.........................
13,000,000
13,605,454
Creighton
University,
Revenue,
2020,
4%,
7/01/50
.........................
8,450,000
7,528,841
GreatHearts
Arizona
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
7/01/37
.
1,000,000
1,034,927
GreatHearts
Arizona
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
7/01/52
.
1,000,000
1,014,540
Highland
Prep
Obligated
Group,
Revenue,
2019,
5%,
1/01/43
................
2,275,000
2,346,016
HonorHealth
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
9/01/36
.......
2,100,000
2,219,784
HonorHealth
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
9/01/37
.......
3,175,000
3,335,055
HonorHealth
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
9/01/42
.......
2,750,000
2,816,450
HonorHealth
Obligated
Group,
Revenue,
2021
A,
3%,
9/01/51
................
5,600,000
4,009,549
Legacy
Traditional
School
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
7/01/49
........................................................
3,920,000
4,024,169
Reid
Traditional
Schools
Obligated
Group,
Revenue,
2016,
5%,
7/01/36
.........
1,120,000
1,136,994
Reid
Traditional
Schools
Obligated
Group,
Revenue,
2016,
5%,
7/01/47
.........
3,325,000
3,334,129
Maricopa
County
Pollution
Control
Corp.
,
El
Paso
Electric
Co.,
Revenue,
2009
B,
Refunding,
3.6%,
4/01/40
.............
13,500,000
11,761,276
El
Paso
Electric
Co.,
Revenue,
2012
A,
Refunding,
4.5%,
8/01/42
.............
10,000,000
9,988,196
b
Public
Service
Co.
of
New
Mexico,
Revenue,
2010
A,
Refunding,
Mandatory
Put,
0.875%,
10/01/26
................................................
4,500,000
3,938,729
b
Public
Service
Co.
of
New
Mexico,
Revenue,
2010
B,
Refunding,
Mandatory
Put,
0.875%,
10/01/26
................................................
2,150,000
1,881,837
Southern
California
Edison
Co.,
Revenue,
2000
A,
Refunding,
2.4%,
6/01/35
.....
10,000,000
7,696,587
Maricopa
County
Unified
School
District
No.
11-Peoria
,
GO
,
2013
,
5
%
,
7/01/31
.....
5,100,000
5,126,667
Maricopa
County
Unified
School
District
No.
95
Queen
Creek
,
GO,
2018,
5%,
7/01/33
.............................................
500,000
529,206
GO,
2018,
5%,
7/01/37
.............................................
1,200,000
1,257,330
McAllister
Academic
Village
LLC
,
Arizona
State
University,
Revenue,
2016
A,
Refunding,
5%,
7/01/33
............
2,000,000
2,127,582
Arizona
State
University,
Revenue,
2016
A,
Refunding,
5%,
7/01/38
............
2,000,000
2,097,260
Arizona
State
University,
Revenue,
2016
A,
Refunding,
5%,
7/01/39
............
1,000,000
1,046,604
Mohave
County
Union
High
School
District
No.
2
Colorado
River
,
GO
,
2017
,
5
%
,
7/01/35
.........................................................
1,000,000
1,066,850
Northern
Arizona
University
,
Revenue,
2013,
5%,
8/01/26
.........................................
2,380,000
2,398,775
Revenue,
2014,
5%,
6/01/40
.........................................
4,545,000
4,590,283
Pima
County
Unified
School
District
No.
20
Vail
,
GO
,
2016
,
Refunding
,
BAM
Insured
,
5
%
,
7/01/36
......................................................
3,305,000
3,455,716
Pima
County
Unified
School
District
No.
30
Sahuarita
,
GO,
2017,
BAM
Insured,
5%,
7/01/33
...................................
2,665,000
2,848,705
GO,
2017,
BAM
Insured,
5%,
7/01/34
...................................
2,800,000
2,982,527
Pima
County
Unified
School
District
No.
6
Marana
,
GO,
2017
C,
BAM
Insured,
5%,
7/01/36
.................................
2,385,000
2,542,455
GO,
2018
D,
AGMC
Insured,
5%,
7/01/38
................................
2,500,000
2,657,788
Pinal
County
Community
College
District
,
Revenue
,
2017
,
BAM
Insured
,
5
%
,
7/01/34
1,065,000
1,117,668
Salt
River
Project
Agricultural
Improvement
&
Power
District
,
Revenue,
2016
A,
Refunding,
5%,
1/01/38
...............................
9,745,000
10,273,056
Revenue,
2017
A,
Refunding,
5%,
1/01/37
...............................
10,000,000
10,793,342
Revenue,
2017
A,
Refunding,
5%,
1/01/38
...............................
5,435,000
5,834,013
Revenue,
2017
A,
Refunding,
5%,
1/01/39
...............................
2,105,000
2,253,413
Revenue,
2019
A,
5%,
1/01/47
........................................
5,000,000
5,374,103
Revenue,
2023
A,
5%,
1/01/50
........................................
5,000,000
5,459,571
Franklin
Tax-Free
Trust
Schedule
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)
Salt
Verde
Financial
Corp.
,
Revenue,
2007-1,
5%,
12/01/32
.......................................
$
10,000,000
$
10,472,266
Revenue,
2007-1,
5%,
12/01/37
.......................................
5,000,000
5,106,767
State
of
Arizona
,
Distribution,
Revenue,
2005
B,
NATL
Insured,
5.5%,
7/01/27
.................
3,945,000
4,356,316
Distribution,
Revenue,
2005
B,
NATL
Insured,
5.5%,
7/01/28
.................
2,000,000
2,261,937
Distribution,
Revenue,
2005
B,
NATL
Insured,
5.5%,
7/01/29
.................
2,000,000
2,306,909
Distribution,
Revenue,
2005
B,
NATL
Insured,
5.5%,
7/01/36
.................
5,000,000
6,050,456
Distribution,
Revenue,
2005
B,
NATL
Insured,
5.5%,
7/01/37
.................
7,000,000
8,452,292
Student
&
Academic
Services
LLC
,
Revenue,
2014,
BAM
Insured,
5%,
6/01/33
..............................
1,000,000
1,016,178
Revenue,
2014,
BAM
Insured,
5%,
6/01/39
..............................
1,400,000
1,420,253
Revenue,
2014,
BAM
Insured,
5%,
6/01/44
..............................
3,155,000
3,192,567
Town
of
Gilbert
,
Pledged
,
Revenue,
Sub.
Lien
,
2015
,
5
%
,
7/01/45
...............
10,000,000
10,296,257
Town
of
Queen
Creek
,
Excise
Tax,
Revenue,
2018
A,
5%,
8/01/42
...............................
2,500,000
2,673,373
Excise
Tax,
Revenue,
2018
A,
5%,
8/01/47
...............................
5,000,000
5,311,711
Excise
Tax,
Revenue,
2020,
4%,
8/01/50
................................
5,000,000
4,596,467
University
of
Arizona
(The)
,
Revenue,
2013,
5%,
8/01/38
.........................................
5,790,000
5,803,361
Revenue,
2014,
5%,
8/01/39
.........................................
10,000,000
10,101,509
Revenue,
2016,
Refunding,
5%,
6/01/39
.................................
2,750,000
2,858,012
Revenue,
2016
B,
Refunding,
5%,
6/01/42
...............................
2,000,000
2,060,019
Revenue,
2018
A,
5%,
6/01/43
........................................
5,000,000
5,316,052
Revenue,
2019
A,
5%,
6/01/42
........................................
1,000,000
1,074,236
708,054,439
Florida
0.1%
a
Capital
Trust
Agency,
Inc.
,
SHI
-
Lake
Osborne
LLC
,
Revenue
,
144A,
2021
A-1
,
3.68
%
,
1/01/57
.........................................................
800,000
539,307
Georgia
0.3%
a
Development
Authority
of
Rockdale
County
,
AHPC
Terraces
at
Fieldstone
LLC
,
Revenue
,
144A,
2021
A-1
,
3.5
%
,
12/01/36
...............................
3,290,000
2,638,918
Oregon
0.2%
a
State
of
Oregon
Housing
&
Community
Services
Department
,
Union
at
Pacific
Highway
LP
,
Revenue
,
144A,
2022
II-1
,
5.5
%
,
12/01/39
............................
1,400,000
1,396,834
South
Carolina
0.6%
South
Carolina
Jobs-Economic
Development
Authority
,
a
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
1,900,000
1,521,158
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
1,900,000
1,516,496
a
Columbia
Portfolio
Obligated
Group,
Revenue,
144A,
2022
A-2,
Zero
Cpn.,
6/01/52
3,275,000
2,051,123
5,088,777
Texas
0.8%
City
of
Dallas
,
DHFC
-
Briscoe
Apartments
LLC
(The)
,
Revenue,
Senior
Lien
,
2022
A
,
6
%
,
12/01/62
.....................................................
2,000,000
2,055,877
a
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
2,600,000
1,928,522
a
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
A-2
,
5
%
,
12/01/52
............
3,300,000
2,414,268
6,398,667
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
1,521,224
Franklin
Tax-Free
Trust
Schedule
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
171
.
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Wisconsin
1.6%
a
Public
Finance
Authority
,
Revenue,
144A,
2022,
B-1,
4%,
12/28/44
................................
$
1,900,000
$
1,505,473
AL-FL
Portfolio
Obligated
Group,
Revenue,
144A,
2021
A,
3.4%,
12/01/36
.......
3,300,000
2,642,951
FAH
Tree
House
LLC,
Revenue,
144A,
2023
A,
6.5%,
8/01/53
................
1,500,000
1,495,941
Gulf
Coast
Portfolio
Obligated
Group,
Revenue,
144A,
2021,
5.25%,
12/01/23
....
5,000,000
5,000,000
Pine
Forest
2022
Obligated
Group,
Revenue,
144A,
2022
A,
6.5%,
12/01/52
.....
1,500,000
1,484,224
12,128,589
U.S.
Territories
4.1%
Guam
1.6%
Guam
Power
Authority
,
Revenue,
2014
A,
AGMC
Insured,
5%,
10/01/39
...........................
6,490,000
6,651,954
Revenue,
2014
A,
AGMC
Insured,
5%,
10/01/44
...........................
5,325,000
5,448,224
12,100,178
Puerto
Rico
2.5%
HTA
HRRB
Custodial
Trust
,
Revenue,
2007
CC,
5.5%,
7/01/31
.....................................
2,790,000
2,876,198
Revenue,
2007
CC,
5.25%,
7/01/32
....................................
1,970,000
1,995,947
HTA
TRRB
Custodial
Trust
,
Revenue,
2005
L,
5.25%,
7/01/41
.....................................
2,290,000
2,315,158
Revenue,
2007
N,
5.5%,
7/01/29
......................................
770,000
796,462
Revenue,
2007
N,
5.25%,
7/01/36
.....................................
750,000
756,680
Puerto
Rico
Electric
Power
Authority
,
Revenue
,
VV
,
Refunding
,
NATL
Insured
,
5.25
%
,
7/01/32
.........................................................
3,700,000
3,709,599
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue,
2022
A,
5%,
7/01/62
........................................
474,935
440,502
Revenue,
2022
B,
Zero
Cpn.,
7/01/32
...................................
308,644
192,902
Revenue,
2022
C,
Zero
Cpn.,
7/01/53
..................................
527,963
293,110
Puerto
Rico
Sales
Tax
Financing
Corp.
,
Sales
Tax,
Revenue,
A-1,
4.75%,
7/01/53
................................
1,550,000
1,389,392
Sales
Tax,
Revenue,
A-1,
5%,
7/01/58
..................................
4,906,000
4,551,787
19,317,737
Total
U.S.
Territories
....................................................................
31,417,915
Total
Municipal
Bonds
(Cost
$811,338,293)
.....................................
769,184,670
a
a
a
a
a
Total
Investments
(Cost
$811,338,293)
99.1%
...................................
$769,184,670
Other
Assets,
less
Liabilities
0.9%
.............................................
7,141,893
Net
Assets
100.0%
...........................................................
$776,326,563
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,
2023,
the
aggregate
value
of
these
securities
was
$29,125,432,
representing
3.8%
of
net
assets.
b
The
maturity
date
shown
represents
the
mandatory
put
date.
Franklin
Tax-Free
Trust
Financial
Highlights
Franklin
Colorado
Tax-Free
Income
Fund
franklintempleton.com
Annual
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
64
a
Year
Ended
February
28,
Year
Ended
February
28,
2019
b
2023
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.40
$11.69
$11.96
$11.32
$11.28
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.28
0.25
0.28
0.31
0.17
Net
realized
and
unrealized
gains
(losses)
...........
(1.15)
(0.29)
(0.27)
0.66
0.04
Total
from
investment
operations
....................
(0.87)
(0.04)
0.01
0.97
0.21
Less
distributions
from:
Net
investment
income
..........................
(0.27)
(0.25)
(0.28)
(0.33)
(0.17)
Net
asset
value,
end
of
year
.......................
$10.26
$11.40
$11.69
$11.96
$11.32
Total
return
e
...................................
(7.63)%
(0.43)%
0.07%
8.69%
1.89%
Ratios
to
average
net
assets
f
Expenses
g
....................................
0.85%
0.83%
0.83%
0.84%
0.84%
Net
investment
income
...........................
2.62%
2.08%
2.40%
2.72%
3.14%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$117,511
$142,935
$119,598
$87,684
$35,153
Portfolio
turnover
rate
............................
13.39%
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,
2023
2022
2021
2020
a
2019
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.40
$11.68
$11.96
$11.31
$11.32
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.29
0.26
0.30
0.33
0.37
Net
realized
and
unrealized
gains
(losses)
...........
(1.14)
(0.28)
(0.29)
0.67
(0.01)
Total
from
investment
operations
....................
(0.85)
(0.02)
0.01
1.00
0.36
Less
distributions
from:
Net
investment
income
..........................
(0.29)
(0.26)
(0.29)
(0.35)
(0.37)
Net
asset
value,
end
of
year
.......................
$10.26
$11.40
$11.68
$11.96
$11.31
Total
return
d
...................................
(7.49)%
(0.19)%
0.13%
8.95%
3.28%
Ratios
to
average
net
assets
Expenses
e
....................................
0.70%
0.68%
0.68%
0.69%
0.69%
Net
investment
income
...........................
2.77%
2.24%
2.57%
2.87%
3.29%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$287,013
$386,962
$422,411
$477,155
$462,925
Portfolio
turnover
rate
............................
13.39%
14.21%
19.32%
15.00%
10.85%
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
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,
2023
2022
2021
2020
a
2019
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.54
$11.83
$12.11
$11.45
$11.46
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.23
0.20
0.24
0.27
0.31
Net
realized
and
unrealized
gains
(losses)
...........
(1.15)
(0.29)
(0.29)
0.68
(0.01)
Total
from
investment
operations
....................
(0.92)
(0.09)
(0.05)
0.95
0.30
Less
distributions
from:
Net
investment
income
..........................
(0.23)
(0.20)
(0.23)
(0.29)
(0.31)
Net
asset
value,
end
of
year
.......................
$10.39
$11.54
$11.83
$12.11
$11.45
Total
return
d
...................................
(8.00)%
(0.83)%
(0.41)%
8.36%
2.67%
Ratios
to
average
net
assets
Expenses
e
....................................
1.24%
1.23%
1.22%
1.24%
1.24%
Net
investment
income
...........................
2.18%
1.66%
2.01%
2.32%
2.74%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$23,346
$36,062
$50,968
$66,329
$69,045
Portfolio
turnover
rate
............................
13.39%
14.21%
19.32%
15.00%
10.85%
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
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,
2023
2022
2021
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.41
$11.69
$11.97
$11.32
$11.33
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.31
0.28
0.32
0.35
0.39
Net
realized
and
unrealized
gains
(losses)
...........
(1.15)
(0.28)
(0.29)
0.66
(0.01)
Total
from
investment
operations
....................
(0.84)
—
0.03
1.01
0.38
Less
distributions
from:
Net
investment
income
..........................
(0.30)
(0.28)
(0.31)
(0.36)
(0.39)
Net
asset
value,
end
of
year
.......................
$10.27
$11.41
$11.69
$11.97
$11.32
Total
return
....................................
(7.35)%
(0.05)%
0.27%
9.09%
3.40%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.56%
0.55%
0.56%
0.56%
0.58%
Expenses
net
of
waiver
and
payments
by
affiliates
d
......
0.55%
0.54%
0.54%
0.55%
0.55%
Net
investment
income
...........................
2.91%
2.38%
2.68%
3.01%
3.43%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$15,147
$23,615
$19,296
$14,297
$8,396
Portfolio
turnover
rate
............................
13.39%
14.21%
19.32%
15.00%
10.85%
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
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,
2023
2022
2021
2020
a
2019
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.40
$11.68
$11.96
$11.31
$11.32
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.30
0.28
0.31
0.35
0.38
Net
realized
and
unrealized
gains
(losses)
...........
(1.14)
(0.28)
(0.28)
0.66
(—)
d
Total
from
investment
operations
....................
(0.84)
—
0.03
1.01
0.38
Less
distributions
from:
Net
investment
income
..........................
(0.30)
(0.28)
(0.31)
(0.36)
(0.39)
Net
asset
value,
end
of
year
.......................
$10.26
$11.40
$11.68
$11.96
$11.31
Total
return
....................................
(7.40)%
(0.10)%
0.23%
9.06%
3.38%
Ratios
to
average
net
assets
Expenses
e
....................................
0.60%
0.58%
0.58%
0.59%
0.59%
Net
investment
income
...........................
2.87%
2.33%
2.66%
2.97%
3.39%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$97,723
$137,797
$132,696
$115,924
$92,530
Portfolio
turnover
rate
............................
13.39%
14.21%
19.32%
15.00%
10.85%
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%.
Franklin
Tax-Free
Trust
Schedule
of
Investments,
February
28,
2023
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
Corporate
Bonds
0.3%
Software
0.3%
a
Haven
at
Elgin
LLC
,
5.25
%
,
12/31/53
....................................
$
1,400,000
$
1,375,254
Total
Corporate
Bonds
(Cost
$1,400,000)
.......................................
1,375,254
Municipal
Bonds
97.7%
California
0.3%
California
Municipal
Finance
Authority
,
Revenue
,
2022
A-1
,
4.25
%
,
12/01/37
.......
2,000,000
1,665,633
Colorado
90.4%
Adams
State
University
,
Revenue,
2012,
5%,
5/15/37
.........................................
630,000
630,189
Revenue,
2019
A,
Refunding,
4%,
5/15/42
...............................
1,515,000
1,433,149
Anthem
West
Metropolitan
District
,
GO
,
2015
,
Refunding
,
BAM
Insured
,
5
%
,
12/01/35
3,000,000
3,120,256
Arapahoe
County
School
District
No.
1
Englewood
,
GO
,
2017
,
5
%
,
12/01/42
.......
7,000,000
7,244,928
Arapahoe
County
School
District
No.
6
Littleton
,
GO
,
2019
A
,
5.5
%
,
12/01/43
......
12,980,000
14,303,338
Arapahoe
County
Water
&
Wastewater
Authority
,
Revenue
,
2019
,
Refunding
,
4
%
,
12/01/37
........................................................
1,000,000
1,013,081
Board
of
Governors
of
Colorado
State
University
System
,
Revenue,
2013
A,
Refunding,
5%,
3/01/43
...............................
5,000,000
5,604,166
Revenue,
2015
A,
Pre-Refunded,
5%,
3/01/40
............................
3,990,000
4,139,554
Revenue,
2017
E,
Refunding,
4%,
3/01/43
...............................
4,500,000
4,276,719
Revenue,
2019
A,
Refunding,
5%,
3/01/49
...............................
4,000,000
4,294,632
Revenue,
A,
Refunding,
4%,
3/01/40
...................................
5,000,000
4,822,775
Board
of
Water
Commissioners
City
&
County
of
Denver
(The)
,
Revenue
,
2017
A
,
5
%
,
9/15/47
.........................................................
10,000,000
10,466,149
b
Broomfield
Village
Metropolitan
District
No.
2
,
GO
,
144A,
2021
A-1
,
Refunding
,
5
%
,
12/01/49
........................................................
4,331,000
3,831,134
Castle
Oaks
Metropolitan
District
No.
3
,
GO
,
2020
,
Refunding
,
AGMC
Insured
,
4
%
,
12/01/45
........................................................
1,140,000
1,057,398
Centennial
Water
&
Sanitation
District
,
Revenue,
2019,
5%,
12/01/43
........................................
3,000,000
3,226,830
Revenue,
2019,
5.25%,
12/01/48
......................................
6,760,000
7,295,005
Cherokee
Metropolitan
District
,
Revenue,
2020,
BAM
Insured,
4%,
8/01/45
..............................
2,250,000
2,139,714
Revenue,
2020,
BAM
Insured,
4%,
8/01/50
..............................
1,400,000
1,267,022
City
&
County
of
Denver
,
Airport
System,
Revenue,
2013
B,
5%,
11/15/43
...........................
5,000,000
5,028,012
Airport
System,
Revenue,
2018
B,
Refunding,
5%,
12/01/43
..................
5,000,000
5,208,870
Airport
System,
Revenue,
2018
B,
Refunding,
5%,
12/01/48
..................
4,440,000
4,592,560
Airport
System,
Revenue,
2019
C,
Refunding,
5%,
11/15/35
..................
3,000,000
3,328,000
Airport
System,
Revenue,
2022
A,
5%,
11/15/37
...........................
4,250,000
4,562,894
Airport
System,
Revenue,
2022
D,
Refunding,
5%,
11/15/53
..................
5,000,000
5,135,539
Pledged
Excise
Tax,
Revenue,
2016
A,
Refunding,
4%,
8/01/46
...............
3,500,000
3,303,887
Pledged
Excise
Tax,
Revenue,
2018
A-1,
5%,
8/01/48
......................
5,000,000
5,102,408
Pledged
Excise
Tax,
Revenue,
2021
A,
4%,
8/01/34
........................
1,000,000
1,061,490
City
of
Colorado
Springs
,
Utilities
System,
Revenue,
2013
B-1,
5%,
11/15/38
.........................
4,000,000
4,034,802
Utilities
System,
Revenue,
2015
A,
Refunding,
5%,
11/15/45
.................
2,665,000
2,729,569
Utilities
System,
Revenue,
2017
A-2,
Refunding,
5%,
11/15/47
................
6,000,000
6,274,465
Utilities
System,
Revenue,
2018
A-4,
5%,
11/15/48
.........................
5,000,000
5,326,614
Utilities
System,
Revenue,
2020
C,
5%,
11/15/50
..........................
3,000,000
3,197,729
City
of
Fort
Collins
,
Electric
Utility
Enterprise
,
Revenue
,
2018
A
,
5
%
,
12/01/42
......
13,500,000
14,496,524
City
of
Grand
Junction
,
COP,
2021,
4%,
12/01/45
............................................
2,005,000
1,910,862
Sales
&
Use
Tax,
Revenue,
2020
B,
4%,
3/01/49
..........................
3,775,000
3,472,198
Colorado
Educational
&
Cultural
Facilities
Authority
,
Alexander
Dawson
School
LLC
(The),
Revenue,
2010,
5%,
2/15/40
............
5,280,000
5,284,180
Franklin
Tax-Free
Trust
Schedule
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)
Colorado
Educational
&
Cultural
Facilities
Authority,
(continued)
Aspen
View
Academy,
Inc.,
Revenue,
2021,
4%,
5/01/36
....................
$
425,000
$
387,207
Aspen
View
Academy,
Inc.,
Revenue,
2021,
4%,
5/01/41
....................
150,000
128,253
Aspen
View
Academy,
Inc.,
Revenue,
2021,
4%,
5/01/51
....................
370,000
294,500
Aspen
View
Academy,
Inc.,
Revenue,
2021,
4%,
5/01/61
....................
550,000
417,558
Denver
School
of
Science
&
Technology,
Inc.,
Revenue,
2021,
3%,
8/01/41
......
1,460,000
1,127,904
Denver
School
of
Science
&
Technology,
Inc.,
Revenue,
2021,
3%,
8/01/51
......
3,635,000
2,491,470
Eagle
Ridge
Academy,
Revenue,
2022
A,
Refunding,
5%,
11/01/37
............
1,000,000
1,054,779
Golden
View
Classical
Academy,
Revenue,
2022,
Refunding,
4%,
1/01/26
.......
195,000
191,649
Golden
View
Classical
Academy,
Revenue,
2022,
Refunding,
4%,
1/01/32
.......
280,000
271,403
Golden
View
Classical
Academy,
Revenue,
2022,
Refunding,
4%,
1/01/52
.......
1,355,000
1,076,884
Golden
View
Classical
Academy,
Revenue,
2022,
Refunding,
4%,
1/01/62
.......
1,600,000
1,214,798
James
Irwin
Educational
Foundation
Obligated
Group,
Revenue,
2022,
5%,
9/01/52
750,000
739,297
James
Irwin
Educational
Foundation
Obligated
Group,
Revenue,
2022,
5%,
9/01/57
1,765,000
1,708,991
Lighthouse
Building
Corp.,
Revenue,
2021,
4%,
10/01/46
....................
345,000
286,484
Lighthouse
Building
Corp.,
Revenue,
2021,
4%,
10/01/56
....................
1,000,000
790,637
Lighthouse
Building
Corp.,
Revenue,
2021,
4%,
10/01/61
....................
2,210,000
1,696,142
Pinnacle
Charter
School,
Inc.,
Revenue,
2021
A,
Refunding,
4%,
12/01/50
.......
5,820,000
5,202,868
Union
Colony
Schools,
Revenue,
2018,
Refunding,
5%,
4/01/48
...............
715,000
723,691
University
of
Denver,
Revenue,
2017,
5%,
3/01/47
.........................
3,950,000
4,121,655
West
Ridge
Academy
Charter
School,
Revenue,
2019
A,
Refunding,
5%,
6/01/49
..
400,000
401,978
Westgate
Community
School,
Revenue,
2021
A,
Refunding,
4%,
7/01/41
........
2,370,000
2,249,383
Windsor
Charter
Academy
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
9/01/50
2,400,000
2,136,578
Colorado
Health
Facilities
Authority
,
AdventHealth
Obligated
Group,
Revenue,
2016
A,
Refunding,
4%,
11/15/41
......
3,000,000
2,878,570
AdventHealth
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
11/15/37
......
5,000,000
5,396,925
Boulder
Community
Health
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
10/01/35
.......................................................
1,575,000
1,580,408
Boulder
Community
Health
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
10/01/37
.......................................................
850,000
830,188
Boulder
Community
Health
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
10/01/38
.......................................................
705,000
682,655
Boulder
Community
Health
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
10/01/39
.......................................................
835,000
803,216
Boulder
Community
Health
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
10/01/40
.......................................................
725,000
685,357
BSLC
Obligated
Group,
Revenue,
2018
A-1,
Refunding,
5%,
9/15/48
...........
3,000,000
2,768,414
BSLC
Obligated
Group,
Revenue,
2018
A-1,
Refunding,
4.75%,
9/15/53
.........
1,500,000
1,253,431
Children's
Hospital
Colorado
Obligated
Group,
Revenue,
2016
A,
5%,
12/01/44
...
5,000,000
5,072,793
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/38
3,000,000
3,109,607
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/39
2,000,000
2,060,297
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/44
7,000,000
7,130,105
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
4%,
8/01/49
9,990,000
8,663,464
CommonSpirit
Health
Obligated
Group,
Revenue,
2022
A,
5.25%,
11/01/52
......
3,000,000
3,090,570
Covenant
Living
Communities
and
Services
Obligated
Group,
Revenue,
2013
A,
Pre-
Refunded,
5.75%,
12/01/36
.........................................
5,000,000
5,096,979
Covenant
Living
Communities
and
Services
Obligated
Group,
Revenue,
2015
A,
Refunding,
5%,
12/01/35
...........................................
7,150,000
7,179,341
Covenant
Living
Communities
and
Services
Obligated
Group,
Revenue,
2018
A,
5%,
12/01/48
.......................................................
5,000,000
4,895,262
Covenant
Living
Communities
and
Services
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
12/01/50
...........................................
5,700,000
4,582,093
Craig
Hospital
Obligated
Group,
Revenue,
2022
A,
5%,
12/01/52
..............
3,535,000
3,649,307
Evangelical
Lutheran
Good
Samaritan
Obligated
Group,
Revenue,
2013,
Pre-
Refunded,
5.5%,
6/01/33
..........................................
1,000,000
1,005,053
Evangelical
Lutheran
Good
Samaritan
Obligated
Group,
Revenue,
2013,
Pre-
Refunded,
5.625%,
6/01/43
.........................................
4,000,000
4,021,427
Franklin
Tax-Free
Trust
Schedule
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,
2015
A,
Pre-
Refunded,
5%,
6/01/40
............................................
$
4,000,000
$
4,166,856
Evangelical
Lutheran
Good
Samaritan
Obligated
Group,
Revenue,
2015
A,
Pre-
Refunded,
5%,
6/01/45
............................................
2,750,000
2,864,714
Intermountain
Healthcare
Obligated
Group,
Revenue,
2019
A,
Refunding,
4%,
1/01/38
........................................................
3,660,000
3,683,660
Parkview
Medical
Center,
Inc.
Obligated
Group,
Revenue,
2016,
5%,
9/01/46
.....
5,000,000
5,044,034
Parkview
Medical
Center,
Inc.
Obligated
Group,
Revenue,
2020
A,
4%,
9/01/50
...
6,275,000
5,135,142
Sanford
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
11/01/44
..........
3,495,000
3,574,105
Sanford
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
11/01/49
..........
8,050,000
8,103,129
Valley
View
Hospital
Association,
Revenue,
2015,
5%,
5/15/40
................
2,000,000
2,012,055
Valley
View
Hospital
Association,
Revenue,
2015,
5%,
5/15/45
................
1,000,000
1,004,316
Colorado
High
Performance
Transportation
Enterprise
,
C-470
Express
Lanes
System
,
Revenue
,
2017
,
5
%
,
12/31/47
........................................
2,555,000
2,446,249
Colorado
Housing
and
Finance
Authority
,
Revenue,
2019
B-1,
I,
3.15%,
10/01/44
.................................
1,000,000
806,361
Revenue,
2019
B-1,
I,
3.25%,
10/01/49
.................................
1,000,000
788,707
Colorado
Mesa
University
,
Revenue,
2019
B,
5%,
5/15/44
........................................
1,000,000
1,073,092
Revenue,
2019
B,
5%,
5/15/49
........................................
1,565,000
1,673,034
Colorado
School
of
Mines
,
Revenue,
2017
A,
5%,
12/01/42
.......................................
2,450,000
2,588,577
Revenue,
2017
A,
5%,
12/01/47
.......................................
3,000,000
3,151,209
Crystal
Valley
Metropolitan
District
No.
2
,
GO
,
2020
A
,
Refunding
,
AGMC
Insured
,
3
%
,
12/01/49
........................................................
3,000,000
2,169,197
Denver
City
&
County
School
District
No.
1
,
COP,
2020
A,
5%,
12/01/42
..........................................
2,000,000
2,194,969
GO,
2017,
5%,
12/01/41
.............................................
12,440,000
12,994,224
Denver
Convention
Center
Hotel
Authority
,
Revenue,
Senior
Lien
,
2016
,
Refunding
,
5
%
,
12/01/40
.....................................................
9,775,000
9,565,666
Denver
Health
&
Hospital
Authority
,
COP,
2018,
5%,
12/01/48
............................................
5,255,000
5,079,459
Revenue,
2014
A,
5.25%,
12/01/45
....................................
9,250,000
9,289,077
Revenue,
2019
A,
Refunding,
5%,
12/01/30
..............................
1,000,000
1,066,545
Revenue,
2019
A,
Refunding,
5%,
12/01/31
..............................
1,400,000
1,491,230
Revenue,
2019
A,
Refunding,
5%,
12/01/33
..............................
3,300,000
3,477,664
Denver
International
Business
Center
Metropolitan
District
No.
1
,
GO
,
2019
A
,
4
%
,
12/01/48
........................................................
350,000
306,631
Eagle
River
Water
&
Sanitation
District
,
GO
,
2016
,
5
%
,
12/01/45
................
1,360,000
1,414,311
East
Cherry
Creek
Valley
Water
and
Sanitation
District
,
Revenue
,
2019
A
,
4
%
,
11/15/39
1,200,000
1,200,990
Erie
Farm
Metropolitan
District
,
GO,
2021,
Refunding,
AGMC
Insured,
5%,
12/01/41
........................
575,000
621,143
GO,
2021,
Refunding,
AGMC
Insured,
5%,
12/01/46
........................
700,000
750,993
GO,
2021,
Refunding,
AGMC
Insured,
4%,
12/01/51
........................
1,200,000
1,060,860
b
Fiddlers
Business
Improvement
District
,
GO
,
144A,
2022
,
Refunding
,
5.55
%
,
12/01/47
3,500,000
3,505,465
Flying
Horse
Metropolitan
District
No.
2
,
GO,
2020
A,
Refunding,
AGMC
Insured,
4%,
12/01/44
......................
520,000
485,472
GO,
2020
A,
Refunding,
AGMC
Insured,
4%,
12/01/50
......................
875,000
792,147
Gunnison
Watershed
School
District
No.
Re
1J
,
GO
,
2023
,
5
%
,
12/01/47
..........
3,250,000
3,529,858
Larimer
County
School
District
No.
R-1
Poudre
,
GO
,
2018
,
5
%
,
12/15/40
..........
5,000,000
5,369,088
North
Pine
Vistas
Metropolitan
District
No.
2
,
GO
,
2022
,
Refunding
,
AGMC
Insured
,
5
%
,
12/01/52
.....................................................
1,125,000
1,138,423
Park
70
Metropolitan
District
,
GO,
2016,
Refunding,
5%,
12/01/36
....................................
1,000,000
1,018,572
GO,
2016,
Refunding,
5%,
12/01/46
....................................
1,500,000
1,506,300
Franklin
Tax-Free
Trust
Schedule
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)
Park
Creek
Metropolitan
District
,
Westerly
Creek
District
Service
Area,
Revenue,
2017
A,
5%,
12/01/41
..........
$
3,000,000
$
3,050,878
Westerly
Creek
District
Service
Area,
Revenue,
2017
A,
5%,
12/01/46
..........
2,500,000
2,532,056
Westerly
Creek
District
Service
Area,
Revenue,
Senior
Lien,
2015
A,
Refunding,
5%,
12/01/45
.......................................................
7,000,000
7,077,134
Westerly
Creek
District
Service
Area,
Revenue,
Senior
Lien,
2018
A,
5%,
12/01/46
.
2,875,000
2,998,070
Parker
Water
&
Sanitation
District
,
Revenue
,
2018
,
5
%
,
11/01/42
................
6,475,000
6,841,390
Patriot
Park
Metropolitan
District
No.
2
,
GO
,
2021
,
4.3
%
,
12/01/50
...............
539,000
406,956
Prairiestar
Metropolitan
District
No.
2
,
GO,
2021
A,
Refunding,
BAM
Insured,
5%,
12/01/36
.......................
500,000
549,958
GO,
2021
A,
Refunding,
BAM
Insured,
5%,
12/01/41
.......................
500,000
540,124
GO,
2021
A,
Refunding,
BAM
Insured,
5%,
12/01/46
.......................
500,000
536,424
Public
Authority
for
Colorado
Energy
,
Revenue
,
2008
,
6.5
%
,
11/15/38
............
9,900,000
11,800,583
Regional
Transportation
District
,
Denver
Transit
Partners
LLC,
Revenue,
2020
A,
Refunding,
4%,
1/15/33
........
550,000
552,930
Denver
Transit
Partners
LLC,
Revenue,
2020
A,
Refunding,
4%,
7/15/35
........
1,000,000
984,098
Denver
Transit
Partners
LLC,
Revenue,
2020
A,
Refunding,
4%,
7/15/36
........
750,000
726,798
Denver
Transit
Partners
LLC,
Revenue,
2020
A,
Refunding,
4%,
7/15/38
........
700,000
665,129
Sales
Tax,
Revenue,
2016
A,
5%,
11/01/41
...............................
10,000,000
10,402,148
Sales
Tax,
Revenue,
2016
A,
5%,
11/01/46
...............................
11,000,000
11,366,293
Sand
Creek
Metropolitan
District
,
GO
,
2020
B
,
Refunding
,
AGMC
Insured
,
4
%
,
12/01/40
........................................................
2,665,000
2,638,233
Silver
Peaks
Metropolitan
District
No.
3
,
GO,
Senior
Lien
,
2020
A
,
5
%
,
12/01/50
....
1,000,000
856,500
South
Timnath
Metropolitan
District
No.
2
,
GO
,
2016
,
Refunding
,
5
%
,
12/01/42
.....
5,690,000
5,741,990
State
of
Colorado
,
COP,
2013
I,
Pre-Refunded,
5%,
3/15/36
................................
3,000,000
3,054,516
COP,
2017
J,
5.25%,
3/15/42
.........................................
5,000,000
5,220,241
COP,
2020,
Refunding,
4%,
6/15/40
....................................
1,315,000
1,287,842
COP,
2020
A,
4%,
12/15/38
..........................................
3,555,000
3,538,107
COP,
2020
R,
4%,
3/15/45
...........................................
5,000,000
4,636,867
Sterling
Hills
West
Metropolitan
District
,
GO
,
2017
,
Refunding
,
5
%
,
12/01/39
.......
1,125,000
1,176,417
Sterling
Ranch
Community
Authority
Board
,
Sterling
Ranch
Colorado
Metropolitan
District
No.
2,
Revenue,
2020
A,
Refunding,
3.75%,
12/01/40
.................................................
500,000
397,589
Sterling
Ranch
Colorado
Metropolitan
District
No.
2,
Revenue,
2020
A,
Refunding,
4.25%,
12/01/50
.................................................
1,250,000
965,749
Thompson
Crossing
Metropolitan
District
No.
2
,
GO
,
2016
B
,
Refunding
,
AGMC
Insured
,
5
%
,
12/01/46
..............................................
4,500,000
4,674,927
Town
of
Monument
,
COP
,
2020
,
AGMC
Insured
,
4
%
,
12/01/45
..................
2,000,000
1,903,312
University
of
Colorado
,
Revenue
,
2019
B
,
5
%
,
6/01/44
.......................
1,930,000
2,063,071
Vauxmont
Metropolitan
District
,
GO,
2019,
Refunding,
AGMC
Insured,
5%,
12/15/27
........................
380,000
404,648
GO,
2019,
Refunding,
AGMC
Insured,
5%,
12/15/32
........................
480,000
511,813
Winter
Farm
Metropolitan
District
No.
2
,
GO,
2019,
Refunding,
AGMC
Insured,
5%,
12/01/39
........................
630,000
667,899
GO,
2019,
Refunding,
AGMC
Insured,
5%,
12/01/44
........................
500,000
523,239
488,803,666
Florida
1.2%
Capital
Trust
Agency,
Inc.
,
Kingdom
Development
West
Palm
Beach
Portfolio
Obligated
Group,
Revenue,
2021
A-1,
3.75%,
12/01/36
.............................................
4,104,000
3,417,288
b
SHI
-
Lake
Osborne
LLC,
Revenue,
144A,
2021
A-1,
3.68%,
1/01/57
...........
800,000
539,307
b
Leon
County
Housing
Finance
Authority
,
Revenue
,
144A,
2022
A
,
Zero
Cpn
.,
5/01/57
3,215,000
2,612,187
6,568,782
Franklin
Tax-Free
Trust
Schedule
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)
Georgia
0.4%
b
Development
Authority
of
Rockdale
County
,
AHPC
Terraces
at
Fieldstone
LLC
,
Revenue
,
144A,
2021
A-1
,
3.5
%
,
12/01/36
...............................
$
2,400,000
$
1,925,047
Illinois
1.1%
State
of
Illinois
,
GO,
2003,
5.1%,
6/01/33
............................................
3,000,000
2,951,329
GO,
2016,
5%,
11/01/34
.............................................
560,000
574,776
GO,
2019
B,
4%,
11/01/33
...........................................
1,250,000
1,228,543
GO,
2021
A,
5%,
3/01/33
............................................
500,000
530,055
GO,
2021
A,
5%,
3/01/37
............................................
250,000
260,192
GO,
2021
A,
4%,
3/01/39
............................................
500,000
463,564
6,008,459
New
York
0.1%
Metropolitan
Transportation
Authority
,
Revenue
,
2020
D
,
4
%
,
11/15/47
...........
900,000
785,770
South
Carolina
0.8%
South
Carolina
Jobs-Economic
Development
Authority
,
b
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
1,400,000
1,120,853
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
1,400,000
1,117,418
b
Columbia
Portfolio
Obligated
Group,
Revenue,
144A,
2022
A-1,
Zero
Cpn
.,
6/01/37
2,100,000
1,376,697
b
South
Carolina
State
Housing
Finance
&
Development
Authority
,
Garden
Oaks
LP
,
Revenue
,
144A,
2021
A
,
4.2
%
,
12/01/39
................................
750,000
572,924
4,187,892
Texas
0.6%
b
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
1,800,000
1,335,131
b
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
A-2
,
5
%
,
12/01/52
............
2,400,000
1,755,831
3,090,962
Washington
0.2%
b
Washington
State
Housing
Finance
Commission
,
Madison
at
Rivers
Edge
Apartments
LLC
,
Revenue
,
144A,
2021
A
,
3.65
%
,
1/01/37
............................
1,400,000
1,120,901
Wisconsin
1.2%
b
Public
Finance
Authority
,
Revenue,
144A,
2022,
B-1,
4%,
12/28/44
................................
1,400,000
1,109,296
AL-FL
Portfolio
Obligated
Group,
Revenue,
144A,
2021
A,
3.4%,
12/01/36
.......
2,400,000
1,922,146
Gulf
Coast
Portfolio
Obligated
Group,
Revenue,
144A,
2021,
5.25%,
12/01/23
....
3,700,000
3,700,000
6,731,442
U.S.
Territories
1.4%
Guam
0.3%
Guam
Government
Waterworks
Authority
,
Revenue
,
2020
A
,
5
%
,
1/01/50
.........
1,500,000
1,505,695
Puerto
Rico
1.1%
HTA
HRRB
Custodial
Trust
,
Revenue
,
2007
CC
,
5.5
%
,
7/01/31
.................
1,670,000
1,721,579
HTA
TRRB
Custodial
Trust
,
Revenue
,
2005
L
,
5.25
%
,
7/01/41
..................
1,485,000
1,501,314
Puerto
Rico
Electric
Power
Authority
,
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/32
....................
1,200,000
1,203,113
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/34
....................
1,000,000
1,002,976
Franklin
Tax-Free
Trust
Schedule
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
See
Abbreviations
on
page
171.
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
U.S.
Territories
(continued)
Puerto
Rico
(continued)
Puerto
Rico
Sales
Tax
Financing
Corp.
,
Sales
Tax
,
Revenue
,
A-1
,
5
%
,
7/01/58
.....
$
750,000
$
695,850
6,124,832
Total
U.S.
Territories
....................................................................
7,630,527
Total
Municipal
Bonds
(Cost
$564,617,946)
.....................................
528,519,081
Total
Long
Term
Investments
(Cost
$566,017,946)
...............................
529,894,335
a
a
a
a
a
Short
Term
Investments
1.0%
Municipal
Bonds
1.0%
Colorado
1.0%
c
City
&
County
of
Denver
,
COP,
2008
A-1,
Refunding,
SPA
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
2.5%,
12/01/29
..................................................
5,000,000
5,000,000
COP,
2008
A-2,
Refunding,
SPA
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
2.5%,
12/01/29
..................................................
400,000
400,000
5,400,000
Total
Municipal
Bonds
(Cost
$5,400,000)
.......................................
5,400,000
Total
Short
Term
Investments
(Cost
$5,400,000
)
.................................
5,400,000
a
Total
Investments
(Cost
$571,417,946)
99.0%
...................................
$535,294,335
Other
Assets,
less
Liabilities
1.0%
.............................................
5,445,823
Net
Assets
100.0%
...........................................................
$540,740,158
a
Fair
valued
using
significant
unobservable
inputs.
See
Note
12
regarding
fair
value
measurements.
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,
2023,
the
aggregate
value
of
these
securities
was
$26,426,919,
representing
4.9%
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
Connecticut
Tax-Free
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
75
a
Year
Ended
February
28,
Year
Ended
February
28,
2019
b
2023
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$9.85
$10.17
$10.39
$10.05
$10.01
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.22
0.20
0.26
0.29
0.14
Net
realized
and
unrealized
gains
(losses)
...........
(0.99)
(0.32)
(0.22)
0.36
0.04
Total
from
investment
operations
....................
(0.77)
(0.12)
0.04
0.65
0.18
Less
distributions
from:
Net
investment
income
..........................
(0.22)
(0.20)
(0.26)
(0.31)
(0.14)
Net
asset
value,
end
of
year
.......................
$8.86
$9.85
$10.17
$10.39
$10.05
Total
return
e
...................................
(7.84)%
(1.23)%
0.42%
6.54%
1.86%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
and
expense
reduction
...............................
0.97%
0.98%
0.94%
0.93%
0.92%
Expenses
net
of
waiver
and
payments
by
affiliates
and
expense
reduction
g
..............................
0.91%
0.98%
0.94%
0.93%
0.92%
Net
investment
income
...........................
2.44%
1.95%
2.58%
2.83%
2.98%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$27,698
$34,084
$28,498
$21,670
$13,765
Portfolio
turnover
rate
............................
14.70%
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
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
76
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$9.84
$10.16
$10.38
$10.04
$10.08
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.23
0.22
0.28
0.30
0.31
Net
realized
and
unrealized
gains
(losses)
...........
(0.99)
(0.32)
(0.22)
0.36
(0.03)
Total
from
investment
operations
....................
(0.76)
(0.10)
0.06
0.66
0.28
Less
distributions
from:
Net
investment
income
..........................
(0.23)
(0.22)
(0.28)
(0.32)
(0.32)
Net
asset
value,
end
of
year
.......................
$8.85
$9.84
$10.16
$10.38
$10.04
Total
return
d
...................................
(7.71)%
(1.08)%
0.57%
6.70%
2.86%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
and
expense
reduction
...............................
0.83%
0.83%
0.79%
0.78%
0.77%
Expenses
net
of
waiver
and
payments
by
affiliates
and
expense
reduction
e
..............................
0.76%
0.83%
0.79%
0.78%
0.77%
Net
investment
income
...........................
2.59%
2.12%
2.76%
2.98%
3.13%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$93,653
$119,599
$135,916
$150,081
$160,148
Portfolio
turnover
rate
............................
14.70%
23.52%
20.73%
11.63%
15.00%
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
77
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$9.92
$10.24
$10.46
$10.13
$10.16
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.18
0.16
0.23
0.25
0.26
Net
realized
and
unrealized
gains
(losses)
...........
(1.00)
(0.32)
(0.23)
0.35
(0.02)
Total
from
investment
operations
....................
(0.82)
(0.16)
—
0.60
0.24
Less
distributions
from:
Net
investment
income
..........................
(0.18)
(0.16)
(0.22)
(0.27)
(0.27)
Net
asset
value,
end
of
year
.......................
$8.92
$9.92
$10.24
$10.46
$10.13
Total
return
d
...................................
(8.26)%
(1.62)%
0.02%
5.98%
2.37%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
and
expense
reduction
...............................
1.37%
1.38%
1.34%
1.33%
1.32%
Expenses
net
of
waiver
and
payments
by
affiliates
and
expense
reduction
e
..............................
1.31%
1.38%
1.34%
1.33%
1.32%
Net
investment
income
...........................
2.01%
1.58%
2.21%
2.43%
2.58%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$4,828
$7,281
$13,302
$20,421
$26,076
Portfolio
turnover
rate
............................
14.70%
23.52%
20.73%
11.63%
15.00%
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,
2023
2022
2021
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$9.84
$10.16
$10.38
$10.04
$10.08
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.25
0.23
0.29
0.32
0.33
Net
realized
and
unrealized
gains
(losses)
...........
(1.00)
(0.32)
(0.22)
0.36
(0.03)
Total
from
investment
operations
....................
(0.75)
(0.09)
0.07
0.68
0.30
Less
distributions
from:
Net
investment
income
..........................
(0.24)
(0.23)
(0.29)
(0.34)
(0.34)
Net
asset
value,
end
of
year
.......................
$8.85
$9.84
$10.16
$10.38
$10.04
Total
return
....................................
(7.58)%
(0.91)%
0.71%
6.85%
2.99%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.69%
0.68%
0.70%
0.70%
0.65%
Expenses
net
of
waiver
and
payments
by
affiliates
d
......
0.63%
0.67%
0.66%
0.64%
0.63%
Net
investment
income
...........................
2.75%
2.27%
2.79%
3.12%
3.27%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$2,952
$1,815
$1,385
$299
$147
Portfolio
turnover
rate
............................
14.70%
23.52%
20.73%
11.63%
15.00%
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
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,
2023
2022
2021
2020
a
2019
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$9.83
$10.15
$10.37
$10.04
$10.08
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.24
0.23
0.29
0.31
0.32
Net
realized
and
unrealized
gains
(losses)
...........
(0.99)
(0.32)
(0.22)
0.35
(0.03)
Total
from
investment
operations
....................
(0.75)
(0.09)
0.07
0.66
0.29
Less
distributions
from:
Net
investment
income
..........................
(0.24)
(0.23)
(0.29)
(0.33)
(0.33)
Net
asset
value,
end
of
year
.......................
$8.84
$9.83
$10.15
$10.37
$10.04
Total
return
....................................
(7.63)%
(0.98)%
0.67%
6.71%
2.96%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
and
expense
reduction
...............................
0.73%
0.73%
0.69%
0.68%
0.67%
Expenses
net
of
waiver
and
payments
by
affiliates
and
expense
reduction
d
..............................
0.66%
0.73%
0.69%
0.68%
0.67%
Net
investment
income
...........................
2.69%
2.22%
2.85%
3.08%
3.23%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$14,477
$20,378
$20,968
$20,024
$19,351
Portfolio
turnover
rate
............................
14.70%
23.52%
20.73%
11.63%
15.00%
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
Schedule
of
Investments,
February
28,
2023
Franklin
Connecticut
Tax-Free
Income
Fund
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
98.6%
Connecticut
91.5%
City
of
Ansonia
,
GO
,
2021
A
,
AGMC
Insured
,
3
%
,
2/15/37
.....................
$
500,000
$
439,631
City
of
Bridgeport
,
GO,
2021
A,
4%,
8/01/40
............................................
765,000
733,091
GO,
2021
A,
4%,
8/01/46
............................................
375,000
341,306
GO,
2021
A,
4%,
8/01/51
............................................
575,000
506,373
City
of
New
Britain
,
GO
,
2017
C
,
AGMC
Insured
,
5
%
,
3/01/36
..................
1,000,000
1,055,553
City
of
New
Haven
,
GO
,
2021
A
,
Refunding
,
4
%
,
8/01/40
......................
2,000,000
1,842,643
City
of
Stamford
,
Water
Pollution
Control
System
&
Facility
,
Revenue
,
2013
A
,
5.25
%
,
8/15/43
.........................................................
1,000,000
1,005,499
City
of
West
Haven
,
GO
,
2021
,
4
%
,
9/15/41
...............................
565,000
516,038
Connecticut
Housing
Finance
Authority
,
Revenue,
2019
E-E1,
3.05%,
11/15/44
..................................
5,000,000
3,855,963
Revenue,
2019
E-E1,
3.1%,
11/15/49
...................................
2,000,000
1,481,019
Revenue,
2020
C-1,
Refunding,
2.05%,
5/15/37
...........................
1,000,000
773,373
Revenue,
2020
C-2,
Refunding,
2.2%,
11/15/34
...........................
960,000
828,728
Connecticut
State
Health
&
Educational
Facilities
Authority
,
Avon
Old
Farms
School
Obligated
Group,
Revenue,
D-1,
Refunding,
4%,
7/01/46
..
1,000,000
903,064
Choate
Rosemary
Hall
Foundation,
Inc.
(The),
Revenue,
F,
Refunding,
4%,
7/01/36
480,000
489,030
Choate
Rosemary
Hall
Foundation,
Inc.
(The),
Revenue,
F,
Refunding,
4%,
7/01/37
600,000
607,251
Choate
Rosemary
Hall
Foundation,
Inc.
(The),
Revenue,
F,
Refunding,
4%,
7/01/38
315,000
317,022
Choate
Rosemary
Hall
Foundation,
Inc.
(The),
Revenue,
F,
Refunding,
4%,
7/01/39
380,000
378,985
Choate
Rosemary
Hall
Foundation,
Inc.
(The),
Revenue,
F,
Refunding,
4%,
7/01/42
860,000
841,011
Connecticut
College,
Revenue,
L-1,
Refunding,
4%,
7/01/46
..................
5,000,000
4,474,585
Covenant
Living
Communities
and
Services
Obligated
Group,
Revenue,
2018
B,
5%,
12/01/40
.......................................................
4,000,000
3,987,876
Fairfield
University,
Revenue,
Q-1,
5%,
7/01/46
...........................
9,000,000
9,144,486
Hartford
HealthCare
Obligated
Group,
Revenue,
2021
A,
4%,
7/01/46
..........
6,000,000
5,574,175
Jerome
Home,
Revenue,
2021
E,
Refunding,
4%,
7/01/41
...................
735,000
613,581
Jerome
Home,
Revenue,
2021
E,
Refunding,
4%,
7/01/51
...................
1,250,000
959,457
Nuvance
Health
Obligated
Group,
Revenue,
2019
A,
Refunding,
4%,
7/01/38
.....
1,000,000
898,658
Nuvance
Health
Obligated
Group,
Revenue,
2019
A,
Refunding,
4%,
7/01/41
.....
6,310,000
5,601,748
Quinnipiac
University,
Revenue,
L,
Refunding,
5%,
7/01/45
..................
8,250,000
8,413,385
Sacred
Heart
University,
Inc.,
Revenue,
I-1,
Refunding,
5%,
7/01/42
............
4,375,000
4,498,250
Sacred
Heart
University,
Inc.,
Revenue,
K,
5%,
7/01/35
.....................
550,000
597,375
Sacred
Heart
University,
Inc.,
Revenue,
K,
4%,
7/01/45
.....................
1,200,000
1,096,662
Stamford
Hospital
Obligated
Group
(The),
Revenue,
M,
Refunding,
4%,
7/01/37
...
2,550,000
2,390,623
Taft
School
Corp.
(The),
Revenue,
L,
Refunding,
3%,
7/01/46
.................
2,210,000
1,634,300
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2016,
5%,
12/01/41
............
5,000,000
5,114,247
Trustees
of
Trinity
College
(The),
Revenue,
R,
Refunding,
4%,
6/01/45
..........
2,500,000
2,262,866
Trustees
of
Trinity
College
(The),
Revenue,
S,
Refunding,
4%,
6/01/51
..........
4,000,000
3,512,391
University
of
Hartford
(The),
Revenue,
2022
P,
5.375%,
7/01/52
...............
2,000,000
1,931,471
Yale-New
Haven
Health
Obligated
Group,
Revenue,
N,
5%,
7/01/48
............
5,000,000
5,006,832
Connecticut
State
Higher
Education
Supplement
Loan
Authority
,
Revenue,
2020
B,
3.25%,
11/15/36
....................................
1,640,000
1,427,334
Revenue,
2020
D,
Pre-Refunded,
3%,
11/15/35
...........................
1,145,000
1,150,484
Revenue,
2021
B,
2.25%,
11/15/37
....................................
2,500,000
1,937,996
Hartford
County
Metropolitan
District
,
Clean
Water
Project
,
Revenue
,
2014
A
,
Pre-
Refunded
,
5
%
,
11/01/42
.............................................
2,500,000
2,576,968
South
Central
Connecticut
Regional
Water
Authority
,
Revenue,
Second
Series
,
B-Thirty
Second
,
Refunding
,
5
%
,
8/01/38
......................................
1,720,000
1,801,692
State
of
Connecticut
,
GO,
2020
A,
4%,
1/15/38
............................................
7,250,000
7,275,912
GO,
2020
C,
4%,
6/01/39
............................................
600,000
599,948
Special
Tax,
2016
A,
5%,
9/01/33
......................................
1,000,000
1,065,831
Special
Tax,
2018
A,
5%,
1/01/36
......................................
1,000,000
1,078,808
Special
Tax,
2020
A,
5%,
5/01/35
......................................
4,500,000
5,047,012
Special
Tax,
2020
A,
4%,
5/01/39
......................................
1,000,000
1,002,520
Franklin
Tax-Free
Trust
Schedule
of
Investments
Franklin
Connecticut
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)
Connecticut
(continued)
State
of
Connecticut,
(continued)
Special
Tax,
2020
A,
5%,
5/01/40
......................................
$
2,000,000
$
2,179,901
Special
Tax,
2021
A,
4%,
5/01/40
......................................
1,100,000
1,093,933
Special
Tax,
2021
A,
5%,
5/01/41
......................................
1,500,000
1,639,871
Bradley
International
Airport
CFC,
Revenue,
2019
A,
5%,
7/01/49
..............
1,400,000
1,391,463
Clean
Water
Fund
-
State
Revolving
Fund,
Revenue,
2015
A,
5%,
3/01/34
.......
5,000,000
5,175,613
Clean
Water
Fund
-
State
Revolving
Fund,
Revenue,
2017
A,
5%,
5/01/37
.......
1,000,000
1,069,624
Town
of
Hamden
,
GO
,
2021
,
Refunding
,
BAM
Insured
,
4
%
,
8/15/41
..............
500,000
470,687
Town
of
Stafford
,
GO,
2021,
Refunding,
3%,
2/01/36
.....................................
250,000
224,773
GO,
2021,
Refunding,
3%,
2/01/38
.....................................
310,000
267,036
GO,
2021,
Refunding,
3%,
2/01/41
.....................................
300,000
246,841
Town
of
Stratford
,
GO,
2017,
AGMC
Insured,
5%,
7/01/33
.................................
1,000,000
1,045,280
GO,
2020
A,
Refunding,
BAM
Insured,
4%,
7/01/36
........................
300,000
301,809
GO,
2020
A,
Refunding,
BAM
Insured,
4%,
7/01/38
........................
300,000
295,327
GO,
2020
A,
Refunding,
BAM
Insured,
4%,
7/01/40
........................
300,000
288,960
University
of
Connecticut
,
Revenue,
2013
A,
5%,
8/15/28
........................................
3,000,000
3,018,819
Revenue,
2014
A,
5%,
2/15/31
........................................
2,000,000
2,029,720
Revenue,
2017
A,
5%,
1/15/37
........................................
1,000,000
1,056,516
131,389,226
Florida
0.2%
a
Capital
Trust
Agency,
Inc.
,
SHI
-
Lake
Osborne
LLC
,
Revenue
,
144A,
2021
A-1
,
3.68
%
,
1/01/57
.........................................................
500,000
337,067
Georgia
0.4%
a
Development
Authority
of
Rockdale
County
,
AHPC
Terraces
at
Fieldstone
LLC
,
Revenue
,
144A,
2021
A-1
,
3.5
%
,
12/01/36
...............................
625,000
501,314
Illinois
0.6%
State
of
Illinois
,
GO
,
2020
C
,
4
%
,
10/01/42
................................
1,000,000
893,515
New
Jersey
0.4%
New
Jersey
Economic
Development
Authority
,
Revenue,
2021
QQQ,
4%,
6/15/35
.....................................
300,000
302,925
Revenue,
2021
QQQ,
4%,
6/15/36
.....................................
100,000
100,008
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue
,
2020
AA
,
3
%
,
6/15/50
...
230,000
163,297
566,230
South
Carolina
0.9%
South
Carolina
Jobs-Economic
Development
Authority
,
a
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
500,000
400,305
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
500,000
399,078
a
Columbia
Portfolio
Obligated
Group,
Revenue,
144A,
2022
A-1,
Zero
Cpn.,
6/01/37
750,000
491,677
1,291,060
Texas
0.9%
a
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
500,000
370,870
Lake
Houston
Redevelopment
Authority
,
City
of
Houston
Reinvestment
Zone
No.
10
,
Revenue
,
2021
,
Refunding
,
3
%
,
9/01/47
.................................
780,000
538,186
a
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
A-2
,
5
%
,
12/01/52
............
615,000
449,932
1,358,988
Washington
0.3%
a
Washington
State
Housing
Finance
Commission
,
Madison
at
Rivers
Edge
Apartments
LLC
,
Revenue
,
144A,
2021
A
,
3.65
%
,
1/01/37
............................
500,000
400,322
Franklin
Tax-Free
Trust
Schedule
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
See
Abbreviations
on
page
171
.
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
................................
$
400,000
$
316,942
Gulf
Coast
Portfolio
Obligated
Group,
Revenue,
144A,
2021,
5.25%,
12/01/23
....
1,000,000
1,000,000
1,316,942
U.S.
Territories
2.5%
Puerto
Rico
2.5%
HTA
HRRB
Custodial
Trust
,
Revenue,
2007
CC,
5.5%,
7/01/31
.....................................
1,480,000
1,525,725
Revenue,
2007
CC,
5.25%,
7/01/34
....................................
2,010,000
2,026,000
3,551,725
Total
U.S.
Territories
....................................................................
3,551,725
Total
Municipal
Bonds
(Cost
$155,112,458)
.....................................
141,606,389
a
a
a
a
Short
Term
Investments
0.6%
Municipal
Bonds
0.6%
Connecticut
0.6%
b
Connecticut
State
Health
&
Educational
Facilities
Authority
,
Yale
University
,
Revenue
,
2001
V-2
,
Daily
VRDN
and
Put
,
1.65
%
,
7/01/36
...........................
900,000
900,000
Total
Municipal
Bonds
(Cost
$900,000)
.........................................
900,000
Total
Short
Term
Investments
(Cost
$900,000
)
..................................
900,000
a
Total
Investments
(Cost
$156,012,458)
99.2%
...................................
$142,506,389
Other
Assets,
less
Liabilities
0.8%
.............................................
1,101,709
Net
Assets
100.0%
...........................................................
$143,608,098
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,
2023,
the
aggregate
value
of
these
securities
was
$4,268,429,
representing
3.0%
of
net
assets.
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
Michigan
Tax-Free
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
83
a
Year
Ended
February
28,
Year
Ended
February
28,
2019
b
2023
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.43
$11.84
$12.03
$11.31
$11.19
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.29
0.26
0.28
0.29
0.15
Net
realized
and
unrealized
gains
(losses)
...........
(1.14)
(0.41)
(0.19)
0.74
0.12
Total
from
investment
operations
....................
(0.85)
(0.15)
0.09
1.03
0.27
Less
distributions
from:
Net
investment
income
..........................
(0.28)
(0.26)
(0.28)
(0.31)
(0.15)
Net
asset
value,
end
of
year
.......................
$10.30
$11.43
$11.84
$12.03
$11.31
Total
return
e
...................................
(7.43)%
(1.35)%
0.75%
9.19%
2.46%
Ratios
to
average
net
assets
f
Expenses
g
....................................
0.83%
0.83%
0.82%
0.82%
0.83%
Net
investment
income
...........................
2.71%
2.16%
2.34%
2.51%
2.86%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$120,384
$134,390
$107,468
$74,740
$33,739
Portfolio
turnover
rate
............................
27.70%
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.
84
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.42
$11.82
$12.02
$11.30
$11.25
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.30
0.28
0.30
0.31
0.34
Net
realized
and
unrealized
gains
(losses)
...........
(1.13)
(0.40)
(0.20)
0.73
0.06
Total
from
investment
operations
....................
(0.83)
(0.12)
0.10
1.04
0.40
Less
distributions
from:
Net
investment
income
..........................
(0.30)
(0.28)
(0.30)
(0.32)
(0.35)
Net
asset
value,
end
of
year
.......................
$10.29
$11.42
$11.82
$12.02
$11.30
Total
return
d
...................................
(7.29)%
(1.12)%
0.82%
9.36%
3.59%
Ratios
to
average
net
assets
Expenses
e
....................................
0.68%
0.68%
0.67%
0.67%
0.68%
Net
investment
income
...........................
2.85%
2.32%
2.51%
2.66%
3.01%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$497,643
$628,769
$688,038
$731,568
$727,705
Portfolio
turnover
rate
............................
27.70%
22.05%
10.86%
4.08%
11.55%
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
85
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.61
$12.02
$12.21
$11.48
$11.43
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.24
0.21
0.23
0.25
0.28
Net
realized
and
unrealized
gains
(losses)
...........
(1.15)
(0.41)
(0.19)
0.74
0.05
Total
from
investment
operations
....................
(0.91)
(0.20)
0.04
0.99
0.33
Less
distributions
from:
Net
investment
income
..........................
(0.24)
(0.21)
(0.23)
(0.26)
(0.28)
Net
asset
value,
end
of
year
.......................
$10.46
$11.61
$12.02
$12.21
$11.48
Total
return
d
...................................
(7.86)%
(1.73)%
0.35%
8.74%
2.96%
Ratios
to
average
net
assets
Expenses
e
....................................
1.22%
1.22%
1.22%
1.22%
1.23%
Net
investment
income
...........................
2.25%
1.73%
1.93%
2.11%
2.46%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$30,730
$43,148
$60,847
$78,321
$80,062
Portfolio
turnover
rate
............................
27.70%
22.05%
10.86%
4.08%
11.55%
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.
86
a
Year
Ended
February
28,
2023
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
$11.87
$12.07
$11.35
$11.29
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.32
0.29
0.31
0.33
0.35
Net
realized
and
unrealized
gains
(losses)
...........
(1.14)
(0.41)
(0.20)
0.73
0.07
Total
from
investment
operations
....................
(0.82)
(0.12)
0.11
1.06
0.42
Less
distributions
from:
Net
investment
income
..........................
(0.31)
(0.29)
(0.31)
(0.34)
(0.36)
Net
asset
value,
end
of
year
.......................
$10.33
$11.46
$11.87
$12.07
$11.35
Total
return
....................................
(7.14)%
(1.06)%
0.96%
9.48%
3.79%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.55%
0.55%
0.55%
0.55%
0.57%
Expenses
net
of
waiver
and
payments
by
affiliates
d
......
0.54%
0.54%
0.53%
0.53%
0.54%
Net
investment
income
...........................
2.99%
2.44%
2.62%
2.80%
3.15%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$9,690
$11,255
$6,228
$4,153
$3,042
Portfolio
turnover
rate
............................
27.70%
22.05%
10.86%
4.08%
11.55%
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
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,
2023
2022
2021
2020
a
2019
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.46
$11.86
$12.06
$11.34
$11.29
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.31
0.29
0.31
0.32
0.35
Net
realized
and
unrealized
gains
(losses)
...........
(1.14)
(0.40)
(0.20)
0.74
0.06
Total
from
investment
operations
....................
(0.83)
(0.11)
0.11
1.06
0.41
Less
distributions
from:
Net
investment
income
..........................
(0.31)
(0.29)
(0.31)
(0.34)
(0.36)
Net
asset
value,
end
of
year
.......................
$10.32
$11.46
$11.86
$12.06
$11.34
Total
return
....................................
(7.26)%
(1.01)%
0.92%
9.44%
3.67%
Ratios
to
average
net
assets
Expenses
d
....................................
0.58%
0.58%
0.57%
0.57%
0.58%
Net
investment
income
...........................
2.95%
2.41%
2.59%
2.76%
3.11%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$80,068
$107,625
$102,001
$79,717
$63,190
Portfolio
turnover
rate
............................
27.70%
22.05%
10.86%
4.08%
11.55%
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
Schedule
of
Investments,
February
28,
2023
Franklin
Michigan
Tax-Free
Income
Fund
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
88
a
a
Principal
Amount
a
Value
a
a
a
a
a
Corporate
Bonds
0.2%
Software
0.2%
a
Haven
at
Elgin
LLC
,
5.25
%
,
12/31/53
....................................
$
1,800,000
$
1,768,184
Total
Corporate
Bonds
(Cost
$1,800,000)
.......................................
1,768,184
Municipal
Bonds
98.6%
California
0.3%
California
Municipal
Finance
Authority
,
Revenue
,
2022
A-1
,
4.25
%
,
12/01/37
.......
2,650,000
2,206,965
Florida
1.1%
Capital
Trust
Agency,
Inc.
,
Kingdom
Development
West
Palm
Beach
Portfolio
Obligated
Group,
Revenue,
2021
A-1,
3.75%,
12/01/36
.............................................
5,256,000
4,376,526
b
SHI
-
Lake
Osborne
LLC,
Revenue,
144A,
2021
A-1,
3.68%,
1/01/57
...........
900,000
606,721
b
Leon
County
Housing
Finance
Authority
,
Revenue
,
144A,
2022
A
,
Zero
Cpn.,
5/01/57
4,100,000
3,331,250
8,314,497
Illinois
0.5%
Metropolitan
Pier
&
Exposition
Authority
,
Revenue
,
2022
A
,
Refunding
,
4
%
,
6/15/52
..
2,500,000
2,005,284
State
of
Illinois
,
GO
,
2021
A
,
4
%
,
3/01/40
.................................
1,860,000
1,707,066
3,712,350
Kentucky
0.8%
b
Louisville/Jefferson
County
Metropolitan
Government
,
PSG
Vesta
Derby
Oaks
LLC
,
Revenue
,
144A,
Zero
Cpn.,
5/01/52
....................................
8,625,000
5,640,824
Michigan
87.9%
Ann
Arbor
School
District
,
GO
,
2015
,
Refunding
,
5
%
,
5/01/29
..................
1,235,000
1,280,658
Battle
Creek
School
District
,
GO
,
2022
,
4
%
,
5/01/45
.........................
3,000,000
2,961,723
Belding
Area
Schools
,
GO
,
2022
,
4.25
%
,
5/01/52
...........................
7,330,000
6,891,247
Byron
Center
Public
Schools
,
GO,
2017
I,
5%,
5/01/34
.............................................
1,000,000
1,086,558
GO,
2017
I,
5%,
5/01/35
.............................................
1,920,000
2,076,653
GO,
2017
I,
5%,
5/01/36
.............................................
650,000
699,305
GO,
2017
I,
5%,
5/01/37
.............................................
1,480,000
1,584,237
GO,
2017
I,
5%,
5/01/38
.............................................
1,330,000
1,419,871
GO,
2017
I,
5%,
5/01/39
.............................................
2,290,000
2,440,775
GO,
2017
I,
5%,
5/01/43
.............................................
2,250,000
2,387,345
GO,
2017
I,
5%,
5/01/47
.............................................
4,140,000
4,375,623
Caledonia
Community
Schools
,
GO
,
2015
,
Refunding
,
5
%
,
5/01/26
..............
1,000,000
1,062,653
Central
Michigan
University
,
Revenue,
2014,
Refunding,
5%,
10/01/30
................................
1,910,000
1,949,099
Revenue,
2014,
Refunding,
5%,
10/01/31
................................
1,055,000
1,074,970
Revenue,
2014,
Refunding,
5%,
10/01/34
................................
1,600,000
1,627,823
Revenue,
2014,
Refunding,
5%,
10/01/39
................................
2,000,000
2,028,946
Revenue,
2021,
Refunding,
3%,
10/01/46
................................
1,325,000
960,174
Charter
Township
of
Bloomfield
,
GO,
2016,
Refunding,
5%,
5/01/29
.....................................
470,000
497,548
GO,
2016,
Refunding,
5%,
5/01/32
.....................................
1,000,000
1,056,445
Charter
Township
of
Commerce
,
GO
,
2016
,
Refunding
,
5
%
,
12/01/38
............
3,250,000
3,368,181
City
of
Battle
Creek
,
Water
&
Wastewater
System
,
Revenue
,
2016
A
,
5
%
,
6/01/36
...
1,300,000
1,368,147
City
of
Detroit
,
Great
Lakes
Water
Authority
Water
Supply
System,
Revenue,
Second
Lien,
2003
B,
NATL
Insured,
5%,
7/01/34
.........................................
25,000
25,039
Great
Lakes
Water
Authority
Water
Supply
System,
Revenue,
Senior
Lien,
06A,
AGMC
Insured,
5%,
7/01/34
........................................
30,000
30,048
City
of
Grand
Rapids
,
Sanitary
Sewer
System,
Revenue,
2014,
Pre-Refunded,
5%,
1/01/39
...........
80,000
81,235
Franklin
Tax-Free
Trust
Schedule
of
Investments
Franklin
Michigan
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
89
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Michigan
(continued)
City
of
Grand
Rapids,
(continued)
Sanitary
Sewer
System,
Revenue,
2018,
5%,
1/01/37
.......................
$
1,040,000
$
1,108,121
Sanitary
Sewer
System,
Revenue,
2018,
5%,
1/01/43
.......................
1,000,000
1,045,547
Sanitary
Sewer
System,
Revenue,
2020,
Refunding,
5%,
1/01/45
..............
2,000,000
2,167,145
Water
Supply
System,
Revenue,
2016,
Refunding,
5%,
1/01/41
...............
2,190,000
2,248,349
Water
Supply
System,
Revenue,
2016,
Refunding,
5%,
1/01/46
...............
2,525,000
2,590,913
Water
Supply
System,
Revenue,
2018,
Refunding,
5%,
1/01/43
...............
1,500,000
1,591,342
Water
Supply
System,
Revenue,
2018,
Refunding,
5%,
1/01/48
...............
2,000,000
2,113,296
Water
Supply
System,
Revenue,
2020,
5%,
1/01/40
........................
2,400,000
2,608,511
Water
Supply
System,
Revenue,
2020,
5%,
1/01/50
........................
3,000,000
3,220,887
Comstock
Public
Schools
,
GO
,
2022
,
4
%
,
5/01/52
...........................
3,000,000
2,687,704
County
of
Kent
,
GO,
2016,
5%,
6/01/32
.............................................
1,305,000
1,380,840
GO,
2016,
5%,
6/01/33
.............................................
1,275,000
1,347,884
County
of
Muskegon
,
GO,
2015,
Refunding,
5%,
11/01/33
....................................
1,360,000
1,416,365
GO,
2015,
Refunding,
5%,
11/01/36
....................................
1,735,000
1,801,967
Detroit
City
School
District
,
GO
,
2001
A
,
AGMC
Insured
,
6
%
,
5/01/29
............
9,225,000
10,207,193
DeWitt
Public
Schools
,
GO,
2017,
5%,
5/01/30
.............................................
500,000
547,619
GO,
2017,
5%,
5/01/33
.............................................
815,000
891,265
GO,
2017,
5%,
5/01/34
.............................................
1,000,000
1,090,671
GO,
2017,
5%,
5/01/35
.............................................
1,000,000
1,085,681
GO,
2017,
5%,
5/01/36
.............................................
1,000,000
1,079,918
Downriver
Utility
Wastewater
Authority
,
Revenue,
2018,
Refunding,
AGMC
Insured,
5%,
4/01/34
....................
510,000
553,380
Revenue,
2018,
Refunding,
AGMC
Insured,
5%,
4/01/36
....................
1,600,000
1,717,938
Revenue,
2018,
Refunding,
AGMC
Insured,
5%,
4/01/38
....................
1,500,000
1,587,340
Revenue,
2018,
Refunding,
AGMC
Insured,
5%,
4/01/43
....................
3,000,000
3,141,699
East
Lansing
School
District
,
GO,
2017
I,
5%,
5/01/35
.............................................
1,500,000
1,606,561
GO,
2017
I,
5%,
5/01/37
.............................................
1,100,000
1,164,696
GO,
2017
I,
5%,
5/01/42
.............................................
3,500,000
3,678,211
Farmington
Public
School
District
,
GO,
2015,
Refunding,
AGMC
Insured,
5%,
5/01/27
.........................
1,000,000
1,037,607
GO,
2015,
Refunding,
AGMC
Insured,
5%,
5/01/28
.........................
2,000,000
2,074,364
GO,
2015,
Refunding,
AGMC
Insured,
5%,
5/01/32
.........................
4,035,000
4,173,052
GO,
2015,
Refunding,
AGMC
Insured,
5%,
5/01/33
.........................
2,900,000
2,998,606
GO,
2015,
Refunding,
AGMC
Insured,
5%,
5/01/34
.........................
3,000,000
3,103,911
GO,
2015,
Refunding,
AGMC
Insured,
5%,
5/01/35
.........................
1,000,000
1,034,002
GO,
2018,
BAM
Insured,
4.5%,
5/01/38
.................................
7,225,000
7,408,536
Flat
Rock
Community
School
District
,
GO
,
2022
I
,
4.5
%
,
5/01/52
................
2,100,000
2,051,831
Gerald
R
Ford
International
Airport
Authority
,
Revenue
,
2021
,
5
%
,
1/01/51
.........
2,000,000
2,082,324
Grand
Traverse
County
Hospital
Finance
Authority
,
Munson
Healthcare
Obligated
Group,
Revenue,
2014
A,
5%,
7/01/44
...........
2,000,000
2,013,148
Munson
Healthcare
Obligated
Group,
Revenue,
2014
A,
5%,
7/01/47
...........
2,500,000
2,514,293
Munson
Healthcare
Obligated
Group,
Revenue,
2019
A,
5%,
7/01/44
...........
1,110,000
1,136,998
Munson
Healthcare
Obligated
Group,
Revenue,
2019
B,
5%,
7/01/39
...........
1,625,000
1,700,343
Munson
Healthcare
Obligated
Group,
Revenue,
2021,
Refunding,
3%,
7/01/51
....
10,000,000
7,050,014
Grand
Valley
State
University
,
Revenue,
2016
A,
Refunding,
5%,
12/01/32
..............................
4,295,000
4,497,196
Revenue,
2018,
5%,
12/01/38
........................................
900,000
961,919
Revenue,
2018,
5%,
12/01/43
........................................
1,800,000
1,907,264
Grandville
Public
Schools
,
GO,
II,
AGMC
Insured,
5%,
5/01/29
....................................
750,000
777,568
GO,
II,
AGMC
Insured,
5%,
5/01/30
....................................
1,000,000
1,034,637
Franklin
Tax-Free
Trust
Schedule
of
Investments
Franklin
Michigan
Tax-Free
Income
Fund
(continued)
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
(continued)
Michigan
(continued)
Grandville
Public
Schools,
(continued)
GO,
II,
AGMC
Insured,
5%,
5/01/31
....................................
$
1,150,000
$
1,189,833
GO,
II,
AGMC
Insured,
5%,
5/01/32
....................................
1,165,000
1,205,105
GO,
II,
AGMC
Insured,
5%,
5/01/34
....................................
1,315,000
1,360,826
GO,
II,
AGMC
Insured,
5%,
5/01/35
....................................
1,225,000
1,266,134
GO,
II,
AGMC
Insured,
5%,
5/01/37
....................................
2,915,000
2,999,971
GO,
II,
AGMC
Insured,
5%,
5/01/40
....................................
6,215,000
6,370,085
Great
Lakes
Water
Authority
,
Sewage
Disposal
System,
Revenue,
Second
Lien,
2022
B,
5.5%,
7/01/52
.......
1,500,000
1,623,385
Water
Supply
System,
Revenue,
Second
Lien,
2022
B,
5.5%,
7/01/52
..........
5,000,000
5,411,283
Gull
Lake
Community
School
District
,
GO,
2018
I,
5%,
5/01/45
.............................................
4,000,000
4,206,128
GO,
2018
I,
5%,
5/01/48
.............................................
1,000,000
1,048,697
Holly
Area
School
District
,
GO,
2014,
Refunding,
5%,
5/01/30
.....................................
1,045,000
1,065,497
GO,
2014,
Refunding,
5%,
5/01/32
.....................................
1,040,000
1,060,279
Hudsonville
Public
Schools
,
GO,
2017,
Refunding,
5%,
5/01/37
.....................................
1,550,000
1,661,669
GO,
2017,
Refunding,
5%,
5/01/39
.....................................
2,500,000
2,668,616
GO,
2017,
Refunding,
5%,
5/01/41
.....................................
2,500,000
2,658,243
Kent
Hospital
Finance
Authority
,
Mary
Free
Bed
Rehabilitation
Hospital
Obligated
Group
,
Revenue
,
2021
A
,
3
%
,
4/01/51
..................................
6,010,000
4,002,999
Kentwood
Economic
Development
Corp.
,
Holland
Home
Obligated
Group,
Revenue,
2021,
4%,
11/15/45
................
1,655,000
1,297,314
Holland
Home
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
11/15/31
.......
2,000,000
1,858,801
Holland
Home
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
11/15/43
.......
8,820,000
7,065,601
Kentwood
Public
Schools
,
GO,
2016,
5%,
5/01/35
.............................................
1,205,000
1,261,157
GO,
2016,
5%,
5/01/36
.............................................
1,205,000
1,256,011
GO,
2016,
5%,
5/01/38
.............................................
1,210,000
1,255,713
GO,
2016,
5%,
5/01/44
.............................................
2,920,000
3,002,190
Lansing
Board
of
Water
&
Light
,
Revenue
,
2021
A
,
5
%
,
7/01/51
.................
10,000,000
10,513,217
Lansing
Community
College
,
GO
,
2017
,
Refunding
,
5
%
,
5/01/32
................
2,000,000
2,187,495
Lansing
School
District
,
GO,
2016
I,
5%,
5/01/39
.............................................
2,125,000
2,194,379
GO,
2016
I,
5%,
5/01/40
.............................................
2,200,000
2,271,166
Ludington
Area
School
District
,
GO
,
2022
II
,
BAM
Insured
,
4
%
,
5/01/51
...........
7,820,000
7,209,655
Macomb
Interceptor
Drain
Drainage
District
,
Special
Assessment
,
2017
A
,
Refunding
,
5
%
,
5/01/42
......................................................
7,500,000
7,908,560
Mason
County
Central
School
District
,
GO
,
2014
,
Refunding
,
5
%
,
5/01/26
.........
1,100,000
1,140,433
Mattawan
Consolidated
School
District
,
GO
,
2015
I
,
Pre-Refunded
,
5
%
,
5/01/32
....
1,110,000
1,155,526
Melvindale
Northern
Allen
Park
Public
Schools
,
GO
,
2022
,
AGMC
Insured
,
4.375
%
,
5/01/47
...................................................
1,500,000
1,529,174
Meridian
Public
School
District
,
GO,
2015,
Refunding,
5%,
5/01/27
.....................................
735,000
761,705
GO,
2015,
Refunding,
5%,
5/01/29
.....................................
775,000
801,516
GO,
2015,
Refunding,
5%,
5/01/31
.....................................
1,130,000
1,167,227
Michigan
Finance
Authority
,
Albion
College,
Revenue,
2022,
Refunding,
5%,
12/01/36
....................
3,270,000
3,362,057
Albion
College,
Revenue,
2022,
Refunding,
4%,
12/01/46
....................
5,365,000
4,451,616
Albion
College,
Revenue,
2022,
Refunding,
4%,
12/01/51
....................
3,415,000
2,741,587
Bronson
Health
Care
Group
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
5/15/54
........................................................
11,000,000
10,898,193
Calvin
University
Obligated
Group,
Revenue,
2021,
Refunding,
3%,
9/01/50
......
895,000
592,864
Calvin
University
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
9/01/50
......
2,600,000
2,248,581
Clean
Water
Revolving
Fund,
Revenue,
2016
B,
Refunding,
4%,
10/01/30
.......
2,750,000
2,850,229
Franklin
Tax-Free
Trust
Schedule
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)
Michigan
Finance
Authority,
(continued)
Clean
Water
Revolving
Fund,
Revenue,
2018
B,
Refunding,
5%,
10/01/38
.......
$
8,055,000
$
8,785,863
County
of
Wayne,
Revenue,
Second
Lien,
2020,
Refunding,
BAM
Insured,
4%,
11/01/55
.......................................................
4,000,000
3,622,923
Henry
Ford
Health
System
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
11/15/41
.......................................................
19,015,000
19,317,040
Henry
Ford
Health
System
Obligated
Group,
Revenue,
2019
A,
5%,
11/15/48
.....
10,000,000
10,159,525
Kalamazoo
College,
Revenue,
2018,
Refunding,
4%,
12/01/47
................
2,610,000
2,297,688
Kettering
University,
Revenue,
2020,
Refunding,
4%,
9/01/35
.................
400,000
394,030
Kettering
University,
Revenue,
2020,
Refunding,
4%,
9/01/36
.................
565,000
552,358
Kettering
University,
Revenue,
2020,
Refunding,
4%,
9/01/37
.................
640,000
608,945
Kettering
University,
Revenue,
2020,
Refunding,
4%,
9/01/38
.................
675,000
634,809
Kettering
University,
Revenue,
2020,
Refunding,
4%,
9/01/39
.................
645,000
601,576
Kettering
University,
Revenue,
2020,
Refunding,
4%,
9/01/45
.................
3,780,000
3,354,130
Kettering
University,
Revenue,
2020,
Refunding,
4%,
9/01/50
.................
3,000,000
2,594,516
Lawrence
Technological
University
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
2/01/42
........................................................
745,000
601,837
Michigan
Finance
Authority
Clean
Water
Revolving
Fund,
Revenue,
2018
B,
Refunding,
5%,
10/01/39
...........................................
6,000,000
6,521,030
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
A-2,
Refunding,
5%,
6/01/40
....
1,000,000
1,025,751
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
A,
1,
Refunding,
4%,
6/01/49
...
17,170,000
14,616,368
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
B-1,
2,
Refunding,
5%,
6/01/49
..
2,220,000
2,243,985
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2016
MI,
5%,
12/01/45
.........
19,710,000
20,022,478
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2016
MI,
Pre-Refunded,
5%,
12/01/45
.......................................................
290,000
308,053
Michigan
State
Building
Authority
,
Revenue,
2013
A-1,
Refunding,
5%,
10/15/33
.............................
5,000,000
5,061,663
Revenue,
2013
A-1,
Refunding,
5.25%,
10/15/47
..........................
5,000,000
5,049,347
Revenue,
2016
I,
Refunding,
5%,
4/15/41
................................
13,000,000
13,532,515
Revenue,
2016
I,
Refunding,
5%,
10/15/46
...............................
9,910,000
10,218,915
Revenue,
2016
I,
Refunding,
5%,
10/15/51
...............................
1,000,000
1,031,273
Revenue,
2019
I,
Refunding,
4%,
4/15/54
................................
2,000,000
1,878,347
Revenue,
2021,
3%,
10/15/51
........................................
1,500,000
1,113,941
Revenue,
2022
I,
4%,
10/15/52
.......................................
4,250,000
4,001,535
Michigan
State
Hospital
Finance
Authority
,
Ascension
Health
Credit
Group,
Revenue,
1999
B-3,
4%,
11/15/33
.............
5,370,000
5,461,769
Ascension
Health
Credit
Group,
Revenue,
2010
F-7,
Refunding,
5%,
11/15/47
....
10,000,000
10,134,962
Ascension
Health
Credit
Group,
Revenue,
2010
F-8,
Refunding,
5%,
11/15/46
....
5,000,000
5,071,496
Michigan
State
Housing
Development
Authority
,
Revenue,
2019
B,
3.1%,
12/01/44
.....................................
15,000,000
11,562,374
Revenue,
2020
A,
2.8%,
12/01/45
.....................................
4,350,000
3,140,016
Revenue,
2020
A,
2.85%,
6/01/50
.....................................
5,150,000
3,628,110
Revenue,
2021
A,
2.5%,
6/01/52
......................................
3,000,000
1,940,960
Revenue,
2021
A,
2.7%,
10/01/56
.....................................
5,000,000
3,167,843
Revenue,
2021
A,
2.73%,
10/01/59
....................................
5,000,000
3,133,059
Revenue,
2022
A,
4.1%,
6/01/43
......................................
5,000,000
4,651,613
Michigan
State
University
,
Revenue
,
2015
A
,
5
%
,
8/15/40
.....................
8,500,000
8,750,443
Michigan
Strategic
Fund
,
State
of
Michigan
Department
of
Transportation,
Revenue,
2018,
5%,
6/30/33
....
2,200,000
2,274,787
State
of
Michigan
Department
of
Transportation,
Revenue,
2018,
5%,
6/30/48
....
7,000,000
6,844,896
Michigan
Technological
University
,
Revenue,
2015
A,
5%,
10/01/45
.......................................
2,400,000
2,481,935
Revenue,
2023
A,
AGMC
Insured,
5%,
10/01/47
...........................
3,000,000
3,147,629
Revenue,
2023
A,
AGMC
Insured,
5.25%,
10/01/52
........................
1,675,000
1,781,439
Oakland
School
District
,
GO,
2016,
Refunding,
5%,
5/01/35
.....................................
1,500,000
1,576,804
GO,
2016,
Refunding,
5%,
5/01/36
.....................................
1,005,000
1,056,150
Franklin
Tax-Free
Trust
Schedule
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)
Oakland
University
,
Revenue,
2014,
Refunding,
5%,
3/01/31
.................................
$
1,260,000
$
1,274,762
Revenue,
2014,
Refunding,
5%,
3/01/32
.................................
1,000,000
1,011,129
Revenue,
2014,
Refunding,
5%,
3/01/33
.................................
1,285,000
1,298,548
Revenue,
2014,
Refunding,
5%,
3/01/34
.................................
1,000,000
1,010,446
Revenue,
2014,
Refunding,
5%,
3/01/39
.................................
3,000,000
3,019,946
Revenue,
2016,
5%,
3/01/41
.........................................
5,000,000
5,100,548
Revenue,
2019,
5%,
3/01/50
.........................................
2,230,000
2,312,163
Plainwell
Community
Schools
,
GO
,
2022
II
,
4
%
,
5/01/52
......................
7,000,000
6,438,994
Rochester
Community
School
District
,
GO
,
2016
I
,
5
%
,
5/01/36
.................
2,800,000
2,909,176
Roseville
Community
Schools
,
GO,
2014,
Pre-Refunded,
5%,
5/01/30
..................................
1,620,000
1,684,717
GO,
2014,
Pre-Refunded,
5%,
5/01/31
..................................
1,585,000
1,648,318
Saginaw
Valley
State
University
,
Revenue,
2016
A,
Refunding,
5%,
7/01/30
...............................
1,750,000
1,850,111
Revenue,
2016
A,
Refunding,
5%,
7/01/31
...............................
2,170,000
2,294,138
Revenue,
2016
A,
Refunding,
5%,
7/01/33
...............................
1,240,000
1,308,524
Saline
Area
Schools
,
GO,
2016,
5%,
5/01/34
.............................................
2,750,000
2,894,192
GO,
2016,
5%,
5/01/36
.............................................
2,950,000
3,100,142
South
Haven
Public
Schools
,
GO,
2015
B,
AGMC
Insured,
5%,
5/01/33
................................
350,000
361,975
GO,
2015
B,
AGMC
Insured,
5%,
5/01/35
................................
1,575,000
1,628,553
Sparta
Area
Schools
,
GO
,
II
,
5
%
,
5/01/48
.................................
5,750,000
6,137,946
Trenton
Public
Schools
School
District
,
GO,
2018,
5%,
5/01/42
.............................................
4,920,000
5,275,525
GO,
2018,
5%,
5/01/45
.............................................
11,480,000
12,265,389
Universal
Academy
,
Revenue,
2021,
Refunding,
2%,
12/01/26
................................
405,000
380,699
Revenue,
2021,
Refunding,
4%,
12/01/31
................................
500,000
474,759
Revenue,
2021,
Refunding,
4%,
12/01/40
................................
1,100,000
956,245
University
of
Michigan
,
Revenue,
2015,
Pre-Refunded,
5%,
4/01/46
..............................
2,000,000
2,120,466
Revenue,
2017
A,
Pre-Refunded,
5%,
4/01/37
............................
2,700,000
2,928,415
Revenue,
2017
A,
Pre-Refunded,
5%,
4/01/42
............................
15,635,000
16,957,693
Revenue,
2017
A,
Pre-Refunded,
5%,
4/01/47
............................
5,000,000
5,422,991
Walled
Lake
Consolidated
School
District
,
GO,
2020,
5%,
5/01/45
.............................................
2,500,000
2,667,450
GO,
2022,
5%,
5/01/49
.............................................
1,500,000
1,605,544
Wayne
County
Airport
Authority
,
Detroit
Metropolitan
Wayne
County
Airport,
Revenue,
2018
A,
5%,
12/01/43
......
7,750,000
8,073,749
Detroit
Metropolitan
Wayne
County
Airport,
Revenue,
2021
A,
5%,
12/01/40
......
3,330,000
3,631,212
Detroit
Metropolitan
Wayne
County
Airport,
Revenue,
2021
A,
5%,
12/01/46
......
4,670,000
5,003,075
Detroit
Metropolitan
Wayne
County
Airport,
Revenue,
2021
B,
5%,
12/01/39
......
1,675,000
1,766,653
Wayne
State
University
,
Revenue,
2015
A,
Refunding,
5%,
11/15/31
..............................
1,860,000
1,896,030
Revenue,
2018
A,
5%,
11/15/43
.......................................
4,500,000
4,705,292
Revenue,
2018
A,
4%,
11/15/48
.......................................
10,000,000
9,182,658
Wayne-Westland
Community
Schools
,
GO,
2022,
3%,
11/01/44
.............................................
2,830,000
2,112,282
GO,
2022,
3%,
11/01/46
.............................................
1,475,000
1,074,328
Western
Michigan
University
,
Revenue,
2015
A,
Refunding,
5%,
11/15/28
..............................
1,635,000
1,686,146
Revenue,
2015
A,
Refunding,
5%,
11/15/29
..............................
2,000,000
2,057,852
Revenue,
2015
A,
Refunding,
5%,
11/15/30
..............................
2,500,000
2,568,576
Revenue,
2015
A,
Refunding,
5%,
11/15/40
..............................
1,560,000
1,591,189
Franklin
Tax-Free
Trust
Schedule
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)
Western
Michigan
University,
(continued)
Revenue,
2015
A,
Refunding,
5%,
11/15/45
..............................
$
2,000,000
$
2,037,873
Revenue,
2019
A,
Refunding,
5%,
11/15/44
..............................
2,315,000
2,455,294
Revenue,
2021
A,
AGMC
Insured,
5%,
11/15/51
...........................
2,785,000
2,947,829
Western
School
District
,
GO
,
2022
,
5.25
%
,
5/01/52
..........................
2,000,000
2,179,859
Zeeland
Public
Schools
,
GO,
2015
A,
AGMC
Insured,
5%,
5/01/31
................................
1,530,000
1,580,729
GO,
2015
A,
AGMC
Insured,
5%,
5/01/33
................................
2,000,000
2,064,199
GO,
2015
A,
Pre-Refunded,
AGMC
Insured,
5%,
5/01/35
....................
2,000,000
2,079,897
649,344,628
New
Jersey
0.1%
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue,
2019
BB,
4%,
6/15/50
.......................................
500,000
453,139
Revenue,
2020
AA,
3%,
6/15/50
.......................................
600,000
425,990
879,129
New
York
1.1%
Metropolitan
Transportation
Authority
,
Revenue
,
2021
A-1
,
4
%
,
11/15/48
..........
9,300,000
7,994,514
South
Carolina
1.0%
South
Carolina
Jobs-Economic
Development
Authority
,
b
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
1,800,000
1,441,097
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
1,800,000
1,436,680
b
Columbia
Portfolio
Obligated
Group,
Revenue,
144A,
2022
A-2,
Zero
Cpn.,
6/01/52
6,200,000
3,883,042
b
South
Carolina
State
Housing
Finance
&
Development
Authority
,
Garden
Oaks
LP
,
Revenue
,
144A,
2021
A
,
4.2
%
,
12/01/39
................................
1,000,000
763,899
7,524,718
Texas
0.7%
b
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
2,400,000
1,780,174
Lake
Houston
Redevelopment
Authority
,
City
of
Houston
Reinvestment
Zone
No.
10,
Revenue,
2021,
Refunding,
3%,
9/01/39
325,000
250,286
City
of
Houston
Reinvestment
Zone
No.
10,
Revenue,
2021,
Refunding,
3%,
9/01/40
300,000
226,050
City
of
Houston
Reinvestment
Zone
No.
10,
Revenue,
2021,
Refunding,
3%,
9/01/47
550,000
379,491
b
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
A-2
,
5
%
,
12/01/52
............
3,500,000
2,560,587
5,196,588
Washington
0.2%
b
Washington
State
Housing
Finance
Commission
,
Madison
at
Rivers
Edge
Apartments
LLC
,
Revenue
,
144A,
2021
A
,
3.65
%
,
1/01/37
............................
1,800,000
1,441,159
Wisconsin
0.8%
b
Public
Finance
Authority
,
Revenue,
144A,
2022,
B-1,
4%,
12/28/44
................................
1,800,000
1,426,237
Gulf
Coast
Portfolio
Obligated
Group,
Revenue,
144A,
2021,
5.25%,
12/01/23
....
4,600,000
4,600,000
6,026,237
U.S.
Territories
4.1%
Guam
0.3%
Guam
Government
Waterworks
Authority
,
Revenue
,
2020
A
,
5
%
,
1/01/50
.........
1,750,000
1,756,644
Puerto
Rico
3.8%
HTA
HRRB
Custodial
Trust
,
Revenue,
2007
CC,
5.25%,
7/01/32
....................................
2,100,000
2,127,659
Revenue,
2007
CC,
5.25%,
7/01/36
....................................
1,515,000
1,528,493
HTA
TRRB
Custodial
Trust
,
Revenue,
2005
L,
5.25%,
7/01/41
.....................................
3,900,000
3,942,848
Franklin
Tax-Free
Trust
Schedule
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
See
Abbreviations
on
page
171
.
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
U.S.
Territories
(continued)
Puerto
Rico
(continued)
HTA
TRRB
Custodial
Trust,
(continued)
Revenue,
2007
N,
5.25%,
7/01/34
.....................................
$
7,420,000
$
7,479,067
Revenue,
2007
N,
5.25%,
7/01/36
.....................................
500,000
504,453
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue,
2022
A,
5%,
7/01/62
........................................
95,927
88,972
Revenue,
2022
B,
Zero
Cpn.,
7/01/32
...................................
62,340
38,963
Revenue,
2022
C,
Zero
Cpn.,
7/01/53
..................................
106,638
59,202
Puerto
Rico
Sales
Tax
Financing
Corp.
,
Sales
Tax
,
Revenue
,
A-1
,
5
%
,
7/01/58
.....
12,900,000
11,968,620
27,738,277
Total
U.S.
Territories
....................................................................
29,494,921
Total
Municipal
Bonds
(Cost
$775,999,601)
.....................................
727,776,530
Total
Long
Term
Investments
(Cost
$777,799,601)
...............................
729,544,714
a
a
a
a
a
Short
Term
Investments
0.0%
†
Municipal
Bonds
0.0%
†
Michigan
0.0%
†
c
University
of
Michigan
,
Revenue
,
2012
D-1
,
Daily
VRDN
and
Put
,
2.55
%
,
12/01/24
..
300,000
300,000
Total
Municipal
Bonds
(Cost
$300,000)
.........................................
300,000
Total
Short
Term
Investments
(Cost
$300,000
)
..................................
300,000
a
Total
Investments
(Cost
$778,099,601)
98.8%
...................................
$729,844,714
Other
Assets,
less
Liabilities
1.2%
.............................................
8,671,403
Net
Assets
100.0%
...........................................................
$738,516,117
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Fair
valued
using
significant
unobservable
inputs.
See
Note
12
regarding
fair
value
measurements.
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,
2023,
the
aggregate
value
of
these
securities
was
$27,474,990,
representing
3.7%
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
Minnesota
Tax-Free
Income
Fund
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
95
a
Year
Ended
February
28,
Year
Ended
February
28,
2019
b
2023
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$12.20
$12.62
$12.82
$12.10
$11.97
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.28
0.23
0.25
0.30
0.16
Net
realized
and
unrealized
gains
(losses)
...........
(1.18)
(0.42)
(0.20)
0.72
0.13
Total
from
investment
operations
....................
(0.90)
(0.19)
0.05
1.02
0.29
Less
distributions
from:
Net
investment
income
..........................
(0.27)
(0.23)
(0.25)
(0.30)
(0.16)
Net
asset
value,
end
of
year
.......................
$11.03
$12.20
$12.62
$12.82
$12.10
Total
return
e
...................................
(7.35)%
(1.59)%
0.38%
8.56%
2.45%
Ratios
to
average
net
assets
f
Expenses
g
....................................
0.84%
0.83%
0.83%
0.83%
0.83%
Net
investment
income
...........................
2.48%
1.79%
1.96%
2.42%
2.81%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$173,008
$193,021
$160,623
$96,802
$39,129
Portfolio
turnover
rate
............................
19.82%
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
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
96
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$12.19
$12.61
$12.82
$12.09
$12.07
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.29
0.25
0.27
0.32
0.35
Net
realized
and
unrealized
gains
(losses)
...........
(1.17)
(0.42)
(0.21)
0.73
0.02
Total
from
investment
operations
....................
(0.88)
(0.17)
0.06
1.05
0.37
Less
distributions
from:
Net
investment
income
..........................
(0.29)
(0.25)
(0.27)
(0.32)
(0.35)
Net
asset
value,
end
of
year
.......................
$11.02
$12.19
$12.61
$12.82
$12.09
Total
return
d
...................................
(7.21)%
(1.44)%
0.45%
8.82%
3.16%
Ratios
to
average
net
assets
Expenses
e
....................................
0.69%
0.69%
0.68%
0.68%
0.68%
Net
investment
income
...........................
2.62%
1.94%
2.13%
2.57%
2.96%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$376,659
$506,601
$583,105
$606,559
$588,878
Portfolio
turnover
rate
............................
19.82%
19.81%
9.45%
16.45%
13.97%
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
97
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$12.33
$12.76
$12.97
$12.23
$12.21
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.23
0.17
0.20
0.25
0.29
Net
realized
and
unrealized
gains
(losses)
...........
(1.18)
(0.43)
(0.21)
0.75
0.02
Total
from
investment
operations
....................
(0.95)
(0.26)
(0.01)
1.00
0.31
Less
distributions
from:
Net
investment
income
..........................
(0.23)
(0.17)
(0.20)
(0.26)
(0.29)
Net
asset
value,
end
of
year
.......................
$11.15
$12.33
$12.76
$12.97
$12.23
Total
return
d
...................................
(7.73)%
(2.05)%
(0.10)%
8.23%
2.56%
Ratios
to
average
net
assets
Expenses
e
....................................
1.23%
1.23%
1.23%
1.23%
1.23%
Net
investment
income
...........................
2.03%
1.36%
1.57%
2.02%
2.41%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$52,613
$81,058
$109,387
$138,417
$148,269
Portfolio
turnover
rate
............................
19.82%
19.81%
9.45%
16.45%
13.97%
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.
98
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$12.21
$12.64
$12.84
$12.11
$12.09
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.31
0.27
0.29
0.34
0.37
Net
realized
and
unrealized
gains
(losses)
...........
(1.17)
(0.43)
(0.20)
0.73
0.02
Total
from
investment
operations
....................
(0.86)
(0.16)
0.09
1.07
0.39
Less
distributions
from:
Net
investment
income
..........................
(0.31)
(0.27)
(0.29)
(0.34)
(0.37)
Net
asset
value,
end
of
year
.......................
$11.04
$12.21
$12.64
$12.84
$12.11
Total
return
....................................
(7.06)%
(1.28)%
0.60%
8.97%
3.30%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.54%
0.54%
0.55%
0.55%
0.56%
Expenses
net
of
waiver
and
payments
by
affiliates
d
......
0.53%
0.53%
0.53%
0.53%
0.53%
Net
investment
income
...........................
2.77%
2.10%
2.26%
2.72%
3.11%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$11,973
$16,571
$13,889
$9,693
$7,177
Portfolio
turnover
rate
............................
19.82%
19.81%
9.45%
16.45%
13.97%
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
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,
2023
2022
2021
2020
a
2019
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$12.21
$12.63
$12.83
$12.11
$12.09
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.31
0.26
0.28
0.33
0.37
Net
realized
and
unrealized
gains
(losses)
...........
(1.18)
(0.42)
(0.20)
0.73
0.02
Total
from
investment
operations
....................
(0.87)
(0.16)
0.08
1.06
0.39
Less
distributions
from:
Net
investment
income
..........................
(0.30)
(0.26)
(0.28)
(0.34)
(0.37)
Net
asset
value,
end
of
year
.......................
$11.04
$12.21
$12.63
$12.83
$12.11
Total
return
....................................
(7.11)%
(1.34)%
0.63%
8.83%
3.26%
Ratios
to
average
net
assets
Expenses
d
....................................
0.59%
0.58%
0.58%
0.58%
0.58%
Net
investment
income
...........................
2.71%
2.04%
2.22%
2.67%
3.06%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$197,029
$266,255
$244,156
$203,230
$156,683
Portfolio
turnover
rate
............................
19.82
%
19.81%
9.45%
16.45%
13.97%
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
Schedule
of
Investments,
February
28,
2023
Franklin
Minnesota
Tax-Free
Income
Fund
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
93.9%
Florida
0.8%
Capital
Trust
Agency,
Inc.
,
Kingdom
Development
West
Palm
Beach
Portfolio
Obligated
Group,
Revenue,
2021
A-1,
3.75%,
12/01/36
.............................................
$
6,192,000
$
5,155,907
a
SHI
-
Lake
Osborne
LLC,
Revenue,
144A,
2021
A-1,
3.68%,
1/01/57
...........
2,100,000
1,415,682
6,571,589
Minnesota
90.9%
Alexandria
Independent
School
District
No.
206
,
GO
,
2017
A
,
Refunding
,
3
%
,
2/01/37
29,905,000
26,683,346
Anoka-Hennepin
Independent
School
District
No.
11
,
GO,
2018
A,
3.25%,
2/01/37
..........................................
5,355,000
5,004,543
GO,
2018
A,
4%,
2/01/39
............................................
8,905,000
9,006,551
GO,
2018
A,
3.375%,
2/01/43
.........................................
4,020,000
3,573,323
Becker
Independent
School
District
No.
726
,
GO,
2022
A,
Zero
Cpn.,
2/01/41
.......................................
1,000,000
466,079
GO,
2022
A,
Zero
Cpn.,
2/01/42
.......................................
1,000,000
444,845
GO,
2022
A,
Zero
Cpn.,
2/01/43
.......................................
1,700,000
719,637
Blooming
Prairie
Independent
School
District
No.
756
,
GO
,
2022
A
,
Refunding
,
2.25
%
,
2/01/45
.........................................................
1,500,000
980,297
Brainerd
Independent
School
District
No.
181
,
GO,
2018
A,
4%,
2/01/32
............................................
3,065,000
3,188,300
GO,
2018
A,
4%,
2/01/39
............................................
10,600,000
10,775,042
GO,
2018
A,
4%,
2/01/43
............................................
1,900,000
1,918,217
Centennial
Independent
School
District
No.
12
,
GO,
2015
A,
Refunding,
Zero
Cpn.,
2/01/32
..............................
1,450,000
1,036,939
GO,
2015
A,
Refunding,
Zero
Cpn.,
2/01/34
..............................
1,600,000
1,048,295
GO,
2015
A,
Refunding,
Zero
Cpn.,
2/01/35
..............................
350,000
219,612
City
of
Center
City
,
Hazelden
Betty
Ford
Foundation
,
Revenue
,
2019
,
Refunding
,
4
%
,
11/01/41
........................................................
1,000,000
896,344
City
of
Elk
River
,
Electric
,
Revenue
,
2021
B
,
2.25
%
,
8/01/47
...................
1,475,000
925,191
City
of
Fridley
,
GO,
2022
A,
4%,
2/01/36
............................................
350,000
353,889
GO,
2022
A,
4%,
2/01/37
............................................
735,000
735,764
GO,
2022
A,
4%,
2/01/38
............................................
800,000
801,987
Fridley
Leased
Housing
Associates
I
LLLP,
Revenue,
2018,
FNMA
Insured,
3.75%,
11/01/34
.......................................................
9,496,706
9,421,702
City
of
Minneapolis
,
GO,
2018,
4%,
12/01/43
.............................................
5,000,000
5,019,860
GO,
2018,
4%,
12/01/46
.............................................
3,500,000
3,506,620
GO,
2019,
3%,
12/01/40
.............................................
3,000,000
2,588,932
14th
and
Central
LLLP,
Revenue,
2020,
FNMA
Insured,
2.35%,
2/01/38
.........
9,410,938
8,039,382
Allina
Health
Obligated
Group,
Revenue,
2021,
4%,
11/15/40
.................
6,750,000
6,520,511
Fairview
Health
Services
Obligated
Group,
Revenue,
2015
A,
Refunding,
AGMC
Insured,
5%,
11/15/44
.............................................
10,000,000
10,145,415
Fairview
Health
Services
Obligated
Group,
Revenue,
2018
A,
Refunding,
AGMC
Insured,
5%,
11/15/49
.............................................
6,000,000
6,188,110
City
of
Minneapolis
St.
Paul
Housing
&
Redevelopment
Authority
,
Allina
Health
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
11/15/26
.......
2,000,000
2,127,701
Allina
Health
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
11/15/27
.......
2,000,000
2,151,518
City
of
Rochester
,
Electric
Utility,
Revenue,
2013
B,
Pre-Refunded,
5%,
12/01/43
................
1,000,000
1,013,905
Electric
Utility,
Revenue,
2017
A,
Refunding,
5%,
12/01/42
...................
2,000,000
2,079,161
Electric
Utility,
Revenue,
2017
A,
Refunding,
5%,
12/01/47
...................
9,210,000
9,522,529
Mayo
Clinic,
Revenue,
2016
B,
Refunding,
5%,
11/15/33
....................
4,425,000
5,254,136
Mayo
Clinic,
Revenue,
2016
B,
Refunding,
5%,
11/15/34
....................
10,235,000
12,135,922
Mayo
Clinic,
Revenue,
2016
B,
Refunding,
5%,
11/15/35
....................
1,000,000
1,176,847
Mayo
Clinic,
Revenue,
2016
B,
Refunding,
5%,
11/15/36
....................
8,400,000
9,811,578
Mayo
Clinic,
Revenue,
2018,
4%,
11/15/48
...............................
6,000,000
5,732,866
Franklin
Tax-Free
Trust
Schedule
of
Investments
Franklin
Minnesota
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)
Minnesota
(continued)
City
of
Rochester,
(continued)
Mayo
Clinic,
Revenue,
2022,
Refunding,
3.25%,
11/15/41
...................
$
4,000,000
$
3,416,408
Mayo
Clinic,
Revenue,
2022,
Refunding,
5%,
11/15/57
......................
2,000,000
2,147,952
City
of
St.
Cloud
,
CentraCare
Health
System
Obligated
Group,
Revenue,
2016
A,
Refunding,
4%,
5/01/37
........................................................
12,310,000
11,946,668
CentraCare
Health
System
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
5/01/46
........................................................
4,650,000
4,732,145
CentraCare
Health
System
Obligated
Group,
Revenue,
2019,
Refunding,
5%,
5/01/48
........................................................
10,000,000
10,208,083
City
of
St.
Paul
,
Sales
&
Use
Tax,
Revenue,
2014
G,
5%,
11/01/31
.........................
1,000,000
1,024,728
Sales
&
Use
Tax,
Revenue,
2014
G,
5%,
11/01/32
.........................
1,000,000
1,023,262
Cloquet
Independent
School
District
No.
94
,
GO
,
2015
B
,
5
%
,
2/01/32
............
3,615,000
3,713,081
County
of
Carlton
,
GO
,
2022
A
,
4
%
,
2/01/47
...............................
2,000,000
1,985,502
County
of
Norman
,
GO
,
2022
A
,
3.25
%
,
2/01/52
............................
3,115,000
2,521,442
Dakota
County
Community
Development
Agency
,
Revenue
,
2011
A
,
GNMA
Insured
,
4.875
%
,
12/01/33
..................................................
425,000
425,299
Dawson-Boyd
Independent
School
District
No.
378
,
GO
,
2019
A
,
3.125
%
,
2/01/40
...
2,965,000
2,661,705
Dilworth
Glyndon
Felton
Independent
School
District
No.
2164
,
GO,
2020
A,
3%,
2/01/37
............................................
1,000,000
928,716
GO,
2020
A,
3%,
2/01/39
............................................
1,000,000
892,819
GO,
2020
A,
3%,
2/01/41
............................................
1,225,000
1,073,249
Duluth
Economic
Development
Authority
,
Essentia
Health
Obligated
Group,
Revenue,
2018
A,
Refunding,
5.25%,
2/15/53
...
28,935,000
29,721,725
St.
Luke's
Hospital
of
Duluth
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
6/15/38
........................................................
150,000
134,529
St.
Luke's
Hospital
of
Duluth
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
6/15/39
........................................................
155,000
137,325
St.
Luke's
Hospital
of
Duluth
Obligated
Group,
Revenue,
2021
A,
Refunding,
3%,
6/15/44
........................................................
850,000
582,768
St.
Luke's
Hospital
of
Duluth
Obligated
Group,
Revenue,
2022
A,
Refunding,
5%,
6/15/29
........................................................
400,000
417,609
St.
Luke's
Hospital
of
Duluth
Obligated
Group,
Revenue,
2022
A,
Refunding,
5%,
6/15/30
........................................................
425,000
446,622
St.
Luke's
Hospital
of
Duluth
Obligated
Group,
Revenue,
2022
A,
Refunding,
5%,
6/15/31
........................................................
450,000
475,493
St.
Luke's
Hospital
of
Duluth
Obligated
Group,
Revenue,
2022
A,
Refunding,
5%,
6/15/32
........................................................
500,000
530,432
St.
Luke's
Hospital
of
Duluth
Obligated
Group,
Revenue,
2022
A,
Refunding,
5%,
6/15/33
........................................................
600,000
635,126
St.
Luke's
Hospital
of
Duluth
Obligated
Group,
Revenue,
2022
A,
Refunding,
4%,
6/15/34
........................................................
520,000
499,946
St.
Luke's
Hospital
of
Duluth
Obligated
Group,
Revenue,
2022
A,
Refunding,
4%,
6/15/35
........................................................
425,000
401,890
St.
Luke's
Hospital
of
Duluth
Obligated
Group,
Revenue,
2022
A,
Refunding,
4%,
6/15/36
........................................................
400,000
371,113
St.
Luke's
Hospital
of
Duluth
Obligated
Group,
Revenue,
2022
A,
Refunding,
4%,
6/15/37
........................................................
375,000
341,411
St.
Luke's
Hospital
of
Duluth
Obligated
Group,
Revenue,
2022
A,
Refunding,
4%,
6/15/38
........................................................
400,000
358,745
St.
Luke's
Hospital
of
Duluth
Obligated
Group,
Revenue,
2022
A,
Refunding,
4%,
6/15/39
........................................................
250,000
221,492
St.
Luke's
Hospital
of
Duluth
Obligated
Group,
Revenue,
2022
B,
5.25%,
6/15/52
..
5,000,000
5,030,994
Duluth
Independent
School
District
No.
709
,
GO,
2015
B,
Refunding,
2.5%,
2/01/26
..................................
2,840,000
2,748,367
GO,
2021
C,
Zero
Cpn.,
2/01/29
.......................................
1,870,000
1,502,462
Franklin
Tax-Free
Trust
Schedule
of
Investments
Franklin
Minnesota
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)
Minnesota
(continued)
Duluth
Independent
School
District
No.
709,
(continued)
GO,
2021
C,
Zero
Cpn.,
2/01/30
.......................................
$
1,275,000
$
985,182
GO,
2021
C,
Zero
Cpn.,
2/01/31
.......................................
1,325,000
983,037
GO,
2021
C,
Zero
Cpn.,
2/01/32
.......................................
1,080,000
767,117
GO,
2021
C,
Zero
Cpn.,
2/01/33
.......................................
1,075,000
730,105
Edina
Independent
School
District
No.
273
,
GO
,
2019
A
,
3
%
,
2/01/36
............
1,630,000
1,532,716
Elk
River
Independent
School
District
No.
728
,
GO
,
2015
A
,
4
%
,
2/01/32
..........
3,130,000
3,160,354
Fridley
Independent
School
District
No.
14
,
GO
,
2016
A
,
4
%
,
2/01/29
............
2,220,000
2,286,721
Hastings
Independent
School
District
No.
200
,
GO,
2018
A,
Zero
Cpn.,
2/01/38
.......................................
4,685,000
2,516,634
GO,
2018
A,
Zero
Cpn.,
2/01/39
.......................................
4,685,000
2,353,341
GO,
2018
A,
Zero
Cpn.,
2/01/40
.......................................
4,685,000
2,223,460
Hennepin
County
Regional
Railroad
Authority
,
County
of
Hennepin,
GO,
2019
A,
5%,
12/01/35
...........................
1,480,000
1,647,385
County
of
Hennepin,
GO,
2019
A,
5%,
12/01/36
...........................
5,220,000
5,777,487
County
of
Hennepin,
GO,
2019
A,
5%,
12/01/37
...........................
1,000,000
1,096,754
County
of
Hennepin,
GO,
2019
A,
5%,
12/01/38
...........................
2,000,000
2,186,363
Hermantown
Independent
School
District
No.
700
,
GO
,
2014
A
,
Refunding
,
4
%
,
2/01/29
.........................................................
2,310,000
2,323,808
Hopkins
Independent
School
District
No.
270
,
GO,
2019
A,
3%,
2/01/33
............................................
5,640,000
5,419,650
GO,
2019
A,
3%,
2/01/34
............................................
2,450,000
2,361,178
Lakeview
Independent
School
District
No.
2167
,
GO
,
2021
A
,
2
%
,
2/01/38
.........
1,055,000
755,010
Lakeville
Independent
School
District
No.
194
,
GO
,
2021
B
,
2.125
%
,
2/01/42
.......
4,085,000
2,725,611
Mankato
Independent
School
District
No.
77
,
COP
,
2022
A
,
3
%
,
2/01/42
..........
2,730,000
2,149,857
Maple
River
Independent
School
District
No.
2135
,
GO
,
2020
A
,
4
%
,
2/01/50
.......
10,000,000
10,055,883
Metropolitan
Council
,
GO,
2016
C,
Refunding,
3%,
3/01/30
...................................
3,305,000
3,271,306
GO,
2020
B,
2.125%,
3/01/36
.........................................
4,500,000
3,476,407
GO,
2020
B,
2.125%,
3/01/37
.........................................
4,000,000
2,987,182
GO,
2020
B,
2.125%,
3/01/38
.........................................
4,000,000
2,908,940
GO,
2022
C,
4%,
3/01/40
............................................
3,275,000
3,335,693
GO,
2022
C,
4%,
3/01/41
............................................
3,410,000
3,454,485
Minneapolis-St
Paul
Metropolitan
Airports
Commission
,
Revenue
,
2022
A
,
Refunding
,
4.25
%
,
1/01/52
...................................................
2,990,000
2,858,607
Minneapolis-St.
Paul
Metropolitan
Airports
Commission
,
Revenue,
Senior
Lien,
2016
C,
5%,
1/01/34
..............................
2,870,000
3,061,856
Revenue,
Senior
Lien,
2016
C,
5%,
1/01/35
..............................
4,025,000
4,278,088
Revenue,
Senior
Lien,
2016
C,
5%,
1/01/41
..............................
5,180,000
5,383,042
Revenue,
Senior
Lien,
2016
C,
5%,
1/01/46
..............................
29,975,000
30,873,749
Minnesota
Higher
Education
Facilities
Authority
,
Carleton
College,
Revenue,
2017,
Refunding,
4%,
3/01/47
...................
3,575,000
3,420,841
Macalester
College,
Revenue,
2017,
Refunding,
3%,
3/01/33
.................
3,010,000
2,947,514
Macalester
College,
Revenue,
2017,
Refunding,
4%,
3/01/42
.................
900,000
879,113
Macalester
College,
Revenue,
2021,
Refunding,
4%,
3/01/36
.................
125,000
128,589
Macalester
College,
Revenue,
2021,
Refunding,
4%,
3/01/37
.................
125,000
127,543
Macalester
College,
Revenue,
2021,
Refunding,
3%,
3/01/40
.................
365,000
307,422
Macalester
College,
Revenue,
2021,
Refunding,
3%,
3/01/43
.................
330,000
261,714
St.
John's
University,
Revenue,
2021,
Refunding,
4%,
10/01/32
...............
255,000
261,956
St.
John's
University,
Revenue,
2021,
Refunding,
4%,
10/01/33
...............
240,000
244,112
St.
John's
University,
Revenue,
2021,
Refunding,
4%,
10/01/34
...............
355,000
358,902
St.
John's
University,
Revenue,
2021,
Refunding,
3%,
10/01/37
...............
250,000
206,692
St.
John's
University,
Revenue,
2021,
Refunding,
3%,
10/01/38
...............
250,000
201,953
St.
Olaf
College,
Revenue,
2021,
3%,
10/01/41
...........................
2,600,000
2,062,505
St.
Olaf
College,
Revenue,
Eight
N,
Refunding,
4%,
10/01/33
.................
1,500,000
1,520,720
St.
Olaf
College,
Revenue,
Eight
N,
Refunding,
4%,
10/01/35
.................
500,000
502,733
Franklin
Tax-Free
Trust
Schedule
of
Investments
Franklin
Minnesota
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)
Minnesota
(continued)
Minnesota
Higher
Education
Facilities
Authority,
(continued)
University
of
St.
Thomas,
Revenue,
2016
8-L,
Refunding,
4%,
4/01/31
..........
$
4,200,000
$
4,278,053
University
of
St.
Thomas,
Revenue,
2016
8-L,
Refunding,
5%,
4/01/35
..........
1,720,000
1,803,290
University
of
St.
Thomas,
Revenue,
2017
A,
Refunding,
4%,
10/01/36
..........
750,000
750,991
University
of
St.
Thomas,
Revenue,
2017
A,
Refunding,
4%,
10/01/37
..........
750,000
741,375
University
of
St.
Thomas,
Revenue,
2022
A,
5%,
10/01/52
...................
10,000,000
10,373,704
Minnesota
Housing
Finance
Agency
,
Revenue,
2009,
4%,
8/01/29
.........................................
3,675,000
3,678,339
Revenue,
2011,
5%,
8/01/31
.........................................
2,225,000
2,228,497
Revenue,
2020
B,
GNMA
Insured,
2.8%,
1/01/44
..........................
2,870,000
2,375,135
Revenue,
2020
D,
4%,
8/01/42
........................................
1,815,000
1,750,967
Revenue,
2020
E,
GNMA
Insured,
2.5%,
7/01/40
..........................
1,840,000
1,489,649
Revenue,
2020
E,
GNMA
Insured,
2.7%,
7/01/44
..........................
2,580,000
2,091,782
Revenue,
2020
G,
GNMA
Insured,
2.45%,
7/01/45
.........................
2,115,000
1,695,939
Revenue,
2021
B,
GNMA
Insured,
2.1%,
7/01/36
..........................
950,000
734,459
Revenue,
2021
B,
GNMA
Insured,
2.3%,
7/01/41
..........................
3,345,000
2,420,227
Revenue,
2021
B,
GNMA
Insured,
2.45%,
7/01/46
.........................
3,320,000
2,380,064
Revenue,
2021
H,
GNMA
Insured,
2.55%,
1/01/46
.........................
3,950,000
3,095,811
Revenue,
2022
A,
GNMA
Insured,
2.75%,
7/01/42
.........................
2,660,000
2,078,042
Revenue,
2022
A,
GNMA
Insured,
2.9%,
1/01/45
..........................
1,280,000
1,015,752
Revenue,
2022
C,
GNMA
Insured,
3%,
7/01/43
...........................
1,725,000
1,377,919
b
Minnesota
Municipal
Gas
Agency
,
Revenue
,
2022
A
,
Mandatory
Put
,
4
%
,
12/01/27
..
5,000,000
5,016,070
Minnesota
Municipal
Power
Agency
,
Revenue,
2014
A,
Refunding,
4%,
10/01/31
..............................
1,265,000
1,284,755
Revenue,
2014
A,
Refunding,
4%,
10/01/32
..............................
1,200,000
1,216,749
Revenue,
2014
A,
Refunding,
4%,
10/01/33
..............................
1,000,000
1,012,912
Revenue,
2014
A,
Refunding,
5%,
10/01/34
..............................
1,000,000
1,023,720
Revenue,
2014
A,
Refunding,
5%,
10/01/35
..............................
1,005,000
1,028,371
Revenue,
2016,
4%,
10/01/41
........................................
4,680,000
4,554,622
Revenue,
2016,
5%,
10/01/47
........................................
4,650,000
4,816,060
Minnesota
Public
Facilities
Authority
,
Revenue
,
2010
A
,
5
%
,
3/01/24
.............
9,010,000
9,177,575
Minnetonka
Independent
School
District
No.
276
,
COP
,
2022
A
,
4
%
,
2/01/52
.......
1,850,000
1,826,812
Moorhead
Independent
School
District
No.
152
,
GO
,
2020
A
,
2.5
%
,
2/01/37
.......
9,295,000
7,422,746
Nashwauk
Keewatin
Independent
School
District
No.
319
,
GO
,
2022
A
,
Refunding
,
4
%
,
2/01/48
.........................................................
5,020,000
4,990,700
North
St.
Paul-Maplewood-Oakdale
Independent
School
District
No.
622
,
GO,
2019
A,
3%,
2/01/42
............................................
5,975,000
4,743,734
GO,
2019
A,
3%,
2/01/46
............................................
23,965,000
17,834,029
Northern
Municipal
Power
Agency
,
Revenue,
2013
A,
5%,
1/01/30
........................................
1,190,000
1,191,479
Revenue,
2017,
Refunding,
5%,
1/01/41
.................................
800,000
825,033
Norwood
Young
America
Independent
School
District
No.
108
,
GO
,
2022
A
,
2.25
%
,
2/01/45
.........................................................
1,700,000
1,117,031
Prior
Lake-Savage
Independent
School
District
No.
719
,
GO,
2018
B,
Zero
Cpn.,
2/01/27
.......................................
10,545,000
9,152,163
GO,
2018
B,
Zero
Cpn.,
2/01/28
.......................................
13,055,000
10,983,523
GO,
2018
B,
Zero
Cpn.,
2/01/30
.......................................
9,010,000
7,067,055
GO,
2018
B,
Zero
Cpn.,
2/01/31
.......................................
5,310,000
4,012,602
Red
Rock
Central
Independent
School
District
No.
2884
,
GO
,
2022
A
,
2.375
%
,
2/01/47
3,000,000
1,957,829
Roseville
Independent
School
District
No.
623
,
GO,
2018
A,
5%,
2/01/30
............................................
3,700,000
3,989,022
GO,
2018
A,
4%,
2/01/35
............................................
4,900,000
5,043,089
GO,
2018
A,
4%,
2/01/37
............................................
5,000,000
5,095,863
Sartell-St.
Stephen
Independent
School
District
No.
748
,
GO,
2016
B,
Zero
Cpn.,
2/01/36
.......................................
3,000,000
1,774,759
GO,
2016
B,
Zero
Cpn.,
2/01/37
.......................................
2,820,000
1,557,769
Franklin
Tax-Free
Trust
Schedule
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)
Sartell-St.
Stephen
Independent
School
District
No.
748,
(continued)
GO,
2016
B,
Zero
Cpn.,
2/01/38
.......................................
$
5,220,000
$
2,711,435
GO,
2016
B,
Zero
Cpn.,
2/01/39
.......................................
3,020,000
1,479,671
a
Scott
County
Community
Development
Agency
,
Spero
BP
Senior
LLC
,
Revenue,
Senior
Lien
,
144A,
2022
A
,
5.25
%
,
8/01/37
...............................
8,000,000
7,260,858
Southern
Minnesota
Municipal
Power
Agency
,
Revenue,
1994
A,
NATL
Insured,
Zero
Cpn.,
1/01/26
.......................
5,395,000
4,873,619
Revenue,
1994
A,
NATL
Insured,
Zero
Cpn.,
1/01/27
.......................
6,600,000
5,753,517
Revenue,
2015
A,
Refunding,
5%,
1/01/46
...............................
9,345,000
9,601,542
Revenue,
2017
A,
5%,
1/01/42
........................................
1,315,000
1,409,823
Revenue,
2019
A,
5%,
1/01/32
........................................
700,000
792,644
Revenue,
2019
A,
5%,
1/01/33
........................................
560,000
631,655
Revenue,
2019
A,
5%,
1/01/34
........................................
610,000
686,696
St.
Cloud
Independent
School
District
No.
742
,
COP,
2017
A,
4%,
2/01/38
...........................................
1,000,000
994,936
GO,
2015
A,
4%,
2/01/28
............................................
2,080,000
2,118,805
GO,
2017
B,
Refunding,
4%,
2/01/30
...................................
4,060,000
4,176,935
GO,
2017
B,
Refunding,
4%,
2/01/36
...................................
2,500,000
2,572,004
GO,
2017
B,
Refunding,
4%,
2/01/37
...................................
2,250,000
2,314,804
St.
Francis
Independent
School
District
No.
15
,
GO,
2018
A,
4%,
2/01/37
............................................
1,025,000
1,025,369
GO,
2018
A,
3.5%,
2/01/41
...........................................
3,350,000
3,001,289
St.
Paul
Port
Authority
,
Revenue,
2021-2,
4%,
10/01/40
.......................................
1,100,000
1,028,233
District
Energy
St.
Paul
Obligated
Group,
Revenue,
2021-1,
Refunding,
3%,
10/01/34
300,000
271,628
District
Energy
St.
Paul
Obligated
Group,
Revenue,
2021-1,
Refunding,
4%,
10/01/41
675,000
632,825
State
of
Minnesota
,
COP,
2014,
5%,
6/01/36
.............................................
3,615,000
3,671,272
GO,
2013
F,
Refunding,
4%,
10/01/25
..................................
15,000,000
15,075,779
GO,
2019
A,
5%,
8/01/34
............................................
1,900,000
2,142,388
Revenue,
2014
A,
5%,
6/01/38
........................................
8,500,000
8,516,552
Stearns
County
Housing
&
Redevelopment
Authority
,
Revenue
,
2021
A
,
Refunding
,
3
%
,
2/01/61
......................................................
1,105,000
754,468
University
of
Minnesota
,
Revenue,
2014
B,
5%,
1/01/38
........................................
4,500,000
4,532,237
Revenue,
2014
B,
4%,
1/01/44
........................................
3,750,000
3,681,822
Revenue,
2015
A,
Refunding,
5%,
8/01/28
...............................
7,225,000
7,513,141
Revenue,
2016
A,
5%,
4/01/41
........................................
5,000,000
5,174,239
Revenue,
2017
A,
5%,
9/01/39
........................................
1,500,000
1,595,204
Revenue,
2017
A,
5%,
9/01/41
........................................
3,000,000
3,187,390
Revenue,
2017
B,
Refunding,
5%,
12/01/30
..............................
5,575,000
6,119,308
Revenue,
2019
A,
5%,
4/01/40
........................................
2,110,000
2,283,701
Revenue,
2019
A,
5%,
4/01/41
........................................
6,045,000
6,521,376
Revenue,
2019
A,
5%,
4/01/44
........................................
3,505,000
3,756,757
Revenue,
2020
A,
5%,
11/01/42
.......................................
5,230,000
5,691,166
Virginia
Independent
School
District
No.
706
,
Rock
Ridge
Independent
School
District
No.
2909
,
GO
,
2019
A
,
3
%
,
2/01/40
....................................
2,295,000
1,972,813
Watertown-Mayer
Independent
School
District
No.
111
,
GO,
2020
A,
Zero
Cpn.,
2/01/33
.......................................
2,470,000
1,705,512
GO,
2020
A,
Zero
Cpn.,
2/01/34
.......................................
2,470,000
1,627,655
GO,
2020
A,
Zero
Cpn.,
2/01/36
.......................................
1,470,000
868,532
GO,
2020
A,
Zero
Cpn.,
2/01/37
.......................................
2,470,000
1,381,261
Franklin
Tax-Free
Trust
Schedule
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)
Waterville-Elysian-Morristown
Independent
School
District
No.
2143
,
GO
,
2019
A
,
3
%
,
2/01/32
.........................................................
$
1,995,000
$
1,958,968
West
St.
Paul-Mendota
Heights-Eagan
Independent
School
District
No.
197
,
GO
,
2018
A
,
4
%
,
2/01/34
....................................................
2,655,000
2,747,506
Western
Minnesota
Municipal
Power
Agency
,
Revenue,
2014
A,
Pre-Refunded,
5%,
1/01/40
............................
8,075,000
8,199,713
Revenue,
2014
A,
Pre-Refunded,
5%,
1/01/46
............................
6,870,000
6,976,102
Revenue,
2015
A,
Refunding,
5%,
1/01/35
...............................
3,000,000
3,131,399
Revenue,
2015
A,
Refunding,
5%,
1/01/36
...............................
2,035,000
2,117,985
Revenue,
2018
A,
5%,
1/01/49
........................................
5,000,000
5,301,267
Zumbro
Education
District
,
COP,
2021
A,
4%,
2/01/32
...........................................
200,000
199,777
COP,
2021
A,
4%,
2/01/33
...........................................
150,000
149,621
COP,
2021
A,
4%,
2/01/34
...........................................
125,000
124,687
COP,
2021
A,
2.125%,
2/01/35
........................................
325,000
252,365
COP,
2021
A,
4%,
2/01/38
...........................................
390,000
364,510
COP,
2021
A,
4%,
2/01/41
...........................................
635,000
578,874
737,123,023
South
Carolina
0.7%
South
Carolina
Jobs-Economic
Development
Authority
,
a
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
2,100,000
1,681,280
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
2,100,000
1,676,127
a
South
Carolina
State
Housing
Finance
&
Development
Authority
,
Garden
Oaks
LP
,
Revenue
,
144A,
2021
A
,
4.2
%
,
12/01/39
................................
3,500,000
2,673,645
6,031,052
Texas
0.4%
a
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
A-2
,
5
%
,
12/01/52
............
4,000,000
2,926,385
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
1,681,353
Wisconsin
0.9%
a
Public
Finance
Authority
,
Revenue,
144A,
2022,
B-1,
4%,
12/28/44
................................
2,100,000
1,663,944
Gulf
Coast
Portfolio
Obligated
Group,
Revenue,
144A,
2021,
5.25%,
12/01/23
....
5,600,000
5,600,000
7,263,944
Total
Municipal
Bonds
(Cost
$812,668,260)
.....................................
761,597,346
a
a
a
a
Franklin
Tax-Free
Trust
Schedule
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
s
Short
Term
Investments
5.6%
a
a
Principal
Amount
a
Value
Municipal
Bonds
5.6%
Minnesota
5.6%
c
City
of
Minneapolis
,
Fairview
Health
Services
Obligated
Group
,
Revenue
,
2018
C
,
Refunding
,
LOC
Wells
Fargo
Bank
NA
,
Daily
VRDN
and
Put
,
2.65
%
,
11/15/48
....
$
24,500,000
$
24,500,000
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
,
2.45
%
,
11/15/35
...............................................
6,300,000
6,300,000
c
City
of
Rochester
,
Mayo
Clinic
,
Revenue
,
2008
B
,
SPA
Northern
Trust
Co.
(The)
,
Daily
VRDN
and
Put
,
3.5
%
,
11/15/38
.......................................
14,440,000
14,440,000
45,240,000
Total
Municipal
Bonds
(Cost
$45,240,000)
......................................
45,240,000
Total
Short
Term
Investments
(Cost
$45,240,000
)
................................
45,240,000
a
Total
Investments
(Cost
$857,908,260)
99.5%
...................................
$806,837,346
Other
Assets,
less
Liabilities
0.5%
.............................................
4,443,725
Net
Assets
100.0%
...........................................................
$811,281,071
See
Abbreviations
on
page
171
.
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,
2023,
the
aggregate
value
of
these
securities
was
$24,903,147,
representing
3.1%
of
net
assets.
b
The
maturity
date
shown
represents
the
mandatory
put
date.
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
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
2023
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$12.54
$12.90
$13.20
$12.49
$12.38
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.31
0.25
0.30
0.35
0.17
Net
realized
and
unrealized
gains
(losses)
...........
(1.26)
(0.36)
(0.30)
0.71
0.11
Total
from
investment
operations
....................
(0.95)
(0.11)
—
1.06
0.28
Less
distributions
from:
Net
investment
income
..........................
(0.30)
(0.25)
(0.30)
(0.35)
(0.17)
Net
asset
value,
end
of
year
.......................
$11.29
$12.54
$12.90
$13.20
$12.49
Total
return
e
...................................
(7.57)%
(0.90)%
0.02%
8.60%
2.30%
Ratios
to
average
net
assets
f
Expenses
g
....................................
0.81%
0.81%
0.80%
0.81%
0.80%
Net
investment
income
...........................
2.66%
1.94%
2.31%
2.69%
2.88%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$269,364
$315,516
$261,661
$160,174
$75,132
Portfolio
turnover
rate
............................
26.92%
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
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
108
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$12.54
$12.90
$13.20
$12.49
$12.46
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.32
0.27
0.33
0.37
0.38
Net
realized
and
unrealized
gains
(losses)
...........
(1.26)
(0.36)
(0.31)
0.71
0.03
Total
from
investment
operations
....................
(0.94)
(0.09)
0.02
1.08
0.41
Less
distributions
from:
Net
investment
income
..........................
(0.32)
(0.27)
(0.32)
(0.37)
(0.38)
Net
asset
value,
end
of
year
.......................
$11.28
$12.54
$12.90
$13.20
$12.49
Total
return
d
...................................
(7.51)%
(0.75)%
0.17%
8.76%
3.34%
Ratios
to
average
net
assets
Expenses
e
....................................
0.66%
0.66%
0.65%
0.66%
0.65%
Net
investment
income
...........................
2.80%
2.10%
2.49%
2.84%
3.03%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$628,747
$850,932
$929,798
$996,280
$985,590
Portfolio
turnover
rate
............................
26.92%
24.59%
20.64%
4.56%
13.09%
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)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
109
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$12.71
$13.08
$13.38
$12.66
$12.63
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.26
0.20
0.25
0.30
0.31
Net
realized
and
unrealized
gains
(losses)
...........
(1.28)
(0.37)
(0.30)
0.72
0.03
Total
from
investment
operations
....................
(1.02)
(0.17)
(0.05)
1.02
0.34
Less
distributions
from:
Net
investment
income
..........................
(0.25)
(0.20)
(0.25)
(0.30)
(0.31)
Net
asset
value,
end
of
year
.......................
$11.44
$12.71
$13.08
$13.38
$12.66
Total
return
d
...................................
(8.00)%
(1.36)%
(0.37)%
8.16%
2.72%
Ratios
to
average
net
assets
Expenses
e
....................................
1.20%
1.20%
1.20%
1.21%
1.20%
Net
investment
income
...........................
2.20%
1.52%
1.92%
2.29%
2.48%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$78,486
$125,479
$169,258
$203,367
$215,045
Portfolio
turnover
rate
............................
26.92%
24.59%
20.64%
4.56%
13.09%
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)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
110
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$12.55
$12.91
$13.22
$12.50
$12.47
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.34
0.29
0.34
0.38
0.39
Net
realized
and
unrealized
gains
(losses)
...........
(1.25)
(0.36)
(0.31)
0.73
0.03
Total
from
investment
operations
....................
(0.91)
(0.07)
0.03
1.11
0.42
Less
distributions
from:
Net
investment
income
..........................
(0.34)
(0.29)
(0.34)
(0.39)
(0.39)
Net
asset
value,
end
of
year
.......................
$11.30
$12.55
$12.91
$13.22
$12.50
Total
return
....................................
(7.29)%
(0.61)%
0.31%
8.90%
3.47%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.54%
0.53%
0.54%
0.53%
0.53%
Expenses
net
of
waiver
and
payments
by
affiliates
d
......
0.52%
0.52%
0.51%
0.52%
0.51%
Net
investment
income
...........................
2.94%
2.23%
2.59%
2.98%
3.17%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$14,734
$21,433
$16,977
$10,638
$6,942
Portfolio
turnover
rate
............................
26.92%
24.59%
20.64%
4.56%
13.09%
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
Ohio
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,
2023
2022
2021
2020
a
2019
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$12.55
$12.91
$13.21
$12.50
$12.47
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.33
0.29
0.34
0.38
0.39
Net
realized
and
unrealized
gains
(losses)
...........
(1.25)
(0.37)
(0.30)
0.71
0.03
Total
from
investment
operations
....................
(0.92)
(0.08)
0.04
1.09
0.42
Less
distributions
from:
Net
investment
income
..........................
(0.33)
(0.28)
(0.34)
(0.38)
(0.39)
Net
asset
value,
end
of
year
.......................
$11.30
$12.55
$12.91
$13.21
$12.50
Total
return
....................................
(7.33)%
(0.65)%
0.27%
8.86%
3.43%
Ratios
to
average
net
assets
Expenses
d
....................................
0.56%
0.56%
0.55%
0.56%
0.55%
Net
investment
income
...........................
2.89%
2.20%
2.58%
2.94%
3.13%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$209,487
$299,002
$295,666
$243,913
$179,427
Portfolio
turnover
rate
............................
26.92%
24.59%
20.64%
4.56%
13.09%
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
Schedule
of
Investments,
February
28,
2023
Franklin
Ohio
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
Corporate
Bonds
0.3%
Software
0.3%
a
Haven
at
Elgin
LLC
,
5.25
%
,
12/31/53
....................................
$
3,200,000
$
3,143,438
Total
Corporate
Bonds
(Cost
$3,200,000)
.......................................
3,143,438
Municipal
Bonds
95.9%
California
0.2%
California
Municipal
Finance
Authority
,
Revenue
,
2022
A-1
,
4.25
%
,
12/01/37
.......
2,800,000
2,331,887
Florida
0.8%
Capital
Trust
Agency,
Inc.
,
Kingdom
Development
West
Palm
Beach
Portfolio
Obligated
Group,
Revenue,
2021
A-1,
3.75%,
12/01/36
.............................................
9,144,000
7,613,957
b
SHI
-
Lake
Osborne
LLC,
Revenue,
144A,
2021
A-1,
3.68%,
1/01/57
...........
2,200,000
1,483,095
9,097,052
Illinois
0.1%
State
of
Illinois
,
GO
,
2021
A
,
5
%
,
3/01/32
.................................
1,250,000
1,330,417
Kentucky
0.8%
b
Louisville/Jefferson
County
Metropolitan
Government
,
PSG
Vesta
Derby
Oaks
LLC
,
Revenue
,
144A,
Zero
Cpn.,
5/01/52
....................................
15,210,000
9,947,471
New
Jersey
0.3%
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue,
2020
AA,
4%,
6/15/35
.......................................
1,500,000
1,514,627
Revenue,
2022
A,
4%,
6/15/38
........................................
2,000,000
1,950,571
3,465,198
New
York
0.6%
Metropolitan
Transportation
Authority
,
Revenue,
2020
A-1,
4%,
11/15/40
.....................................
6,750,000
6,147,328
Revenue,
2021
A-1,
4%,
11/15/48
.....................................
750,000
644,719
6,792,047
Ohio
88.6%
Akron
Bath
Copley
Joint
Township
Hospital
District
,
Summa
Health
System
Obligated
Group
,
Revenue
,
2020
,
Refunding
,
3
%
,
11/15/40
..........................
5,400,000
4,017,977
American
Municipal
Power,
Inc.
,
Revenue,
2015
A,
Refunding,
5%,
2/15/28
...............................
5,000,000
5,078,537
Revenue,
2016
A,
Refunding,
4%,
2/15/35
...............................
1,000,000
1,006,161
Revenue,
2016
A,
5%,
2/15/41
........................................
5,000,000
5,098,246
Revenue,
2016
A,
Refunding,
5%,
2/15/46
...............................
7,500,000
7,609,959
Revenue,
2017
A,
Refunding,
5%,
2/15/37
...............................
3,700,000
3,911,408
Revenue,
2017
A,
Refunding,
5%,
2/15/38
...............................
3,500,000
3,681,375
Revenue,
2019
A,
5%,
2/15/44
........................................
3,345,000
3,473,754
Anthony
Wayne
Local
School
District
,
GO
,
2017
A
,
4
%
,
12/01/39
................
3,000,000
2,994,740
Apollo
Joint
Vocational
School
District
,
GO
,
2017
,
Refunding
,
4
%
,
12/01/39
........
6,530,000
6,532,217
Berkshire
Local
School
District
,
GO
,
2021
,
Refunding
,
3
%
,
10/01/56
.............
735,000
518,582
Bethel
Local
School
District
,
COP,
2020,
BAM
Insured,
3%,
12/01/45
.................................
2,095,000
1,589,393
COP,
2020,
BAM
Insured,
2.75%,
12/01/49
..............................
4,000,000
2,783,461
Big
Walnut
Local
School
District
,
GO
,
2019
,
5
%
,
12/01/53
.....................
9,155,000
9,677,645
Bloom-Carroll
Local
School
District
,
GO
,
2018
A
,
5
%
,
11/01/55
.................
7,025,000
7,510,119
Bowling
Green
State
University
,
Revenue
,
2017
B
,
Refunding
,
5
%
,
6/01/42
........
3,250,000
3,397,699
Brooklyn
City
School
District
,
GO,
2017,
Refunding,
AGMC
Insured,
5%,
12/01/38
........................
1,905,000
2,011,672
GO,
2017,
Refunding,
AGMC
Insured,
5%,
12/01/49
........................
9,000,000
9,334,941
Franklin
Tax-Free
Trust
Schedule
of
Investments
Franklin
Ohio
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)
Ohio
(continued)
Buckeye
Tobacco
Settlement
Financing
Authority
,
Revenue,
Senior
Lien,
2020
A-2,
1,
Refunding,
3%,
6/01/48
..................
$
18,215,000
$
13,168,478
Revenue,
Senior
Lien,
2020
A-2,
1,
Refunding,
4%,
6/01/48
..................
3,245,000
2,841,416
Butler
County
Port
Authority
,
Community
First
Solutions
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
5/15/32
........................................................
100,000
101,257
Community
First
Solutions
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
5/15/33
........................................................
135,000
136,453
Community
First
Solutions
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
5/15/34
........................................................
185,000
186,698
Community
First
Solutions
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
5/15/35
........................................................
195,000
195,662
Community
First
Solutions
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
5/15/36
........................................................
205,000
203,545
Community
First
Solutions
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
5/15/37
........................................................
210,000
205,925
Community
First
Solutions
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
5/15/38
........................................................
220,000
213,862
Community
First
Solutions
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
5/15/39
........................................................
225,000
216,565
Community
First
Solutions
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
5/15/40
........................................................
240,000
229,457
Community
First
Solutions
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
5/15/41
........................................................
245,000
232,293
Community
First
Solutions
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
5/15/46
........................................................
900,000
833,873
Community
First
Solutions
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
5/15/51
........................................................
1,000,000
908,498
Canal
Winchester
Local
School
District
,
GO,
2005,
NATL
Insured,
Zero
Cpn.,
12/01/32
............................
3,955,000
2,834,164
GO,
2005,
NATL
Insured,
Zero
Cpn.,
12/01/33
............................
2,000,000
1,373,382
Chillicothe
City
School
District
,
GO,
2006,
Refunding,
NATL
Insured,
Zero
Cpn.,
12/01/23
...................
1,905,000
1,853,297
GO,
2006,
Refunding,
NATL
Insured,
Zero
Cpn.,
12/01/24
...................
1,905,000
1,786,902
Cincinnati
City
School
District
,
GO,
2006,
Refunding,
NATL
Insured,
5.25%,
12/01/27
......................
14,900,000
16,560,492
GO,
2006,
Refunding,
NATL
Insured,
5.25%,
12/01/28
......................
8,180,000
9,303,672
City
of
Chillicothe
,
Adena
Health
System
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
12/01/37
.
2,890,000
2,968,893
Adena
Health
System
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
12/01/47
.
2,110,000
2,127,801
City
of
Cincinnati
,
GO
,
2015
A
,
Pre-Refunded
,
5.25
%
,
12/01/40
.................
6,500,000
6,806,157
City
of
Cleveland
,
GO,
2012,
5%,
12/01/30
.............................................
35,000
35,051
GO,
2020
A,
4%,
12/01/35
...........................................
1,000,000
1,028,365
GO,
2020
A,
2%,
12/01/36
...........................................
1,215,000
934,221
Water
Pollution
Control,
Revenue,
2016,
5%,
11/15/41
......................
2,000,000
2,035,631
City
of
Columbus
,
GO,
2016-3,
Refunding,
5%,
2/15/27
...................................
5,000,000
5,408,264
GO,
2018
A,
5%,
4/01/34
............................................
7,000,000
7,800,536
GO,
2019
A,
5%,
4/01/40
............................................
3,000,000
3,240,142
GO,
2021
A,
5%,
4/01/40
............................................
1,900,000
2,078,297
Sewerage,
Revenue,
2014,
Refunding,
4%,
6/01/31
........................
15,000,000
15,280,594
Sewerage,
Revenue,
2015,
Refunding,
5%,
6/01/30
........................
5,000,000
5,325,627
City
of
Marysville
,
Wastewater
Treatment
System,
Revenue,
2015,
Refunding,
BAM
Insured,
4%,
12/01/40
.......................................................
3,015,000
2,988,582
Franklin
Tax-Free
Trust
Schedule
of
Investments
Franklin
Ohio
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)
Ohio
(continued)
City
of
Marysville,
(continued)
Wastewater
Treatment
System,
Revenue,
2015,
Refunding,
BAM
Insured,
5%,
12/01/47
.......................................................
$
5,035,000
$
5,114,880
Wastewater
Treatment
System,
Revenue,
2016,
Refunding,
BAM
Insured,
4%,
12/01/46
.......................................................
9,370,000
8,922,520
City
of
Mount
Vernon
,
Mount
Vernon
Nazarene
University,
Revenue,
2022,
Refunding,
4%,
2/01/37
.....
995,000
924,303
Mount
Vernon
Nazarene
University,
Revenue,
2022,
Refunding,
4%,
2/01/52
.....
1,675,000
1,403,662
City
of
St.
Bernard
,
Income
Tax
,
Revenue
,
2013
,
AGMC
Insured
,
5
%
,
12/01/43
.....
3,760,000
3,779,824
City
of
Westerville
,
Revenue
,
2014
,
5
%
,
12/01/30
...........................
2,765,000
2,818,890
Cleveland
Department
of
Public
Utilities
Division
of
Public
Power
,
Revenue,
2020
A,
Refunding,
AGMC
Insured,
4%,
11/15/38
..................
600,000
587,479
Revenue,
B-2,
NATL
Insured,
Zero
Cpn.,
11/15/38
.........................
10,000,000
4,951,196
Cleveland
Department
of
Public
Utilities
Division
of
Water
,
Revenue,
2020
FF,
Refunding,
5%,
1/01/32
..............................
1,000,000
1,137,002
Revenue,
2020
FF,
Refunding,
5%,
1/01/33
..............................
1,000,000
1,135,911
Cleveland-Cuyahoga
County
Port
Authority
,
Cleveland
Museum
of
Natural
History
(The),
Revenue,
2021,
5%,
7/01/35
.......
600,000
670,061
Cleveland
Museum
of
Natural
History
(The),
Revenue,
2021,
4%,
7/01/37
.......
700,000
703,464
Cleveland
Museum
of
Natural
History
(The),
Revenue,
2021,
4%,
7/01/38
.......
100,000
100,027
Cleveland
Museum
of
Natural
History
(The),
Revenue,
2021,
4%,
7/01/39
.......
700,000
688,966
Cleveland
Museum
of
Natural
History
(The),
Revenue,
2021,
4%,
7/01/40
.......
100,000
96,896
Cleveland
Museum
of
Natural
History
(The),
Revenue,
2021,
4%,
7/01/41
.......
800,000
766,002
Cleveland
Museum
of
Natural
History
(The),
Revenue,
2021,
4%,
7/01/46
.......
500,000
438,395
Cleveland
Museum
of
Natural
History
(The),
Revenue,
2021,
4%,
7/01/51
.......
2,000,000
1,719,230
Euclid
Avenue
Development
Corp.,
Revenue,
2022
A,
5.5%,
8/01/52
...........
9,000,000
9,631,325
Columbus-Franklin
County
Finance
Authority
,
Revenue,
2021
C,
2.5%,
11/15/41
.....................................
900,000
656,184
Revenue,
2021
C,
3%,
5/15/51
........................................
2,180,000
1,536,899
County
of
Butler
,
Cincinnati
Children's
Hospital
Medical
Center
Obligated
Group,
Revenue,
2016
X,
Refunding,
5%,
5/15/29
............................................
6,750,000
7,453,835
UC
Health
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
11/15/45
..........
20,270,000
20,392,455
UC
Health
Obligated
Group,
Revenue,
2017,
Refunding,
4%,
11/15/36
..........
4,140,000
3,897,318
UC
Health
Obligated
Group,
Revenue,
2017,
Refunding,
4%,
11/15/37
..........
1,500,000
1,402,521
County
of
Cuyahoga
,
GO,
2020
A,
Refunding,
4%,
12/01/34
..................................
750,000
788,040
GO,
2020
A,
Refunding,
3%,
12/01/36
..................................
1,100,000
967,737
Excise
Tax,
Revenue,
2015,
Pre-Refunded,
5%,
12/01/25
....................
500,000
506,953
County
of
Franklin
,
Nationwide
Children's
Hospital,
Inc.,
Revenue,
2016
C,
Refunding,
5%,
11/01/34
..
2,600,000
2,782,995
Nationwide
Children's
Hospital,
Inc.,
Revenue,
2016
C,
Refunding,
4%,
11/01/40
..
5,000,000
4,866,592
Ohio
Living
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
7/01/33
..........
5,270,000
4,801,120
Ohio
Living
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
7/01/34
..........
2,240,000
2,016,163
Ohio
Living
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
7/01/35
..........
2,900,000
2,570,278
Ohio
Living
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
7/01/36
..........
2,640,000
2,315,587
Ohio
Living
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
7/01/40
..........
2,590,000
2,171,834
OhioHealth
Obligated
Group,
Revenue,
2015,
5%,
5/15/33
...................
6,290,000
6,529,336
Sales
Tax,
Revenue,
2018,
5%,
6/01/48
.................................
6,000,000
6,363,527
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2017,
5%,
12/01/46
............
3,515,000
3,578,780
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2017
A-OH,
5%,
12/01/47
.......
11,800,000
12,014,825
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2019
A,
4%,
12/01/49
..........
6,030,000
5,406,354
County
of
Hamilton
,
Sewer
System,
Revenue,
2019
A,
Refunding,
5%,
12/01/33
..................
6,965,000
7,851,486
Sewer
System,
Revenue,
2020
A,
Refunding,
5%,
12/01/32
..................
2,115,000
2,437,250
Sewer
System,
Revenue,
2020
A,
Refunding,
5%,
12/01/35
..................
2,000,000
2,261,064
Franklin
Tax-Free
Trust
Schedule
of
Investments
Franklin
Ohio
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)
Ohio
(continued)
County
of
Hamilton,
(continued)
TriHealth
Obligated
Group,
Revenue,
2017
A,
5%,
8/15/42
...................
$
5,000,000
$
5,087,857
County
of
Lucas
,
GO
,
2022
,
4.75
%
,
12/01/52
..............................
3,000,000
3,093,151
County
of
Mahoning
,
Sewer
System,
Revenue,
2022,
Refunding,
5%,
12/01/46
....................
3,000,000
3,184,412
Western
Reserve
Care
System,
Revenue,
1995,
NATL
Insured,
ETM,
5.5%,
10/15/25
1,700,000
1,757,868
County
of
Miami
,
Kettering
Health
Network
Obligated
Group
,
Revenue
,
2019
,
Refunding
,
5
%
,
8/01/45
.............................................
5,000,000
5,112,052
County
of
Montgomery
,
Kettering
Health
Network
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
8/01/41
1,000,000
963,651
Premier
Health
Partners
Obligated
Group,
Revenue,
2019
A,
Refunding,
4%,
11/15/39
.......................................................
5,000,000
4,623,077
County
of
Ross
,
Adena
Health
System
Obligated
Group
,
Revenue
,
2019
,
Refunding
,
5
%
,
12/01/44
.....................................................
4,705,000
4,755,461
County
of
Union
,
GO
,
2018
,
5
%
,
12/01/47
.................................
5,000,000
5,213,840
Cuyahoga
Falls
City
School
District
,
GO
,
2021
,
BAM
Insured
,
4
%
,
12/01/51
.......
1,485,000
1,326,623
Dayton
City
School
District
,
GO
,
2014
,
Refunding
,
5
%
,
11/01/30
................
5,000,000
5,709,550
Dayton-Montgomery
County
Port
Authority
,
Southwest
Ohio
Regional
Bond
Fund,
Revenue,
2021
C,
2%,
11/15/31
..........
430,000
360,811
Southwest
Ohio
Regional
Bond
Fund,
Revenue,
2021
C,
2.5%,
11/15/41
........
1,615,000
1,158,303
Southwest
Ohio
Regional
Bond
Fund,
Revenue,
2021
C,
3%,
5/15/51
..........
1,000,000
685,930
Deer
Park
Community
City
School
District
,
GO
,
2017
A
,
5.25
%
,
12/01/53
.........
3,000,000
3,073,619
Dublin
City
School
District
,
GO
,
2019
A
,
4
%
,
12/01/44
........................
10,000,000
9,771,032
Elyria
City
School
District
,
GO
,
2017
A
,
5
%
,
12/01/43
........................
5,500,000
5,735,252
Franklin
County
Convention
Facilities
Authority
,
Revenue
,
2014
,
Pre-Refunded
,
5
%
,
12/01/35
........................................................
20,000,000
20,665,832
Fremont
City
School
District
,
GO
,
2017
A
,
5
%
,
1/15/49
.......................
13,970,000
14,292,415
Grandview
Heights
City
School
District
,
GO
,
2019
,
5
%
,
12/01/53
................
2,150,000
2,287,381
Great
Oaks
Career
Campuses
Board
of
Education
,
COP
,
2021
,
3
%
,
12/01/44
......
1,455,000
1,172,693
Green
Local
School
District
,
COP
,
2022
,
AGMC
Insured
,
5
%
,
11/01/52
...........
2,000,000
2,081,986
Hilliard
School
District
,
GO
,
2017
,
4
%
,
12/01/46
............................
10,000,000
9,666,004
Hillsdale
Local
School
District
,
COP
,
2020
,
BAM
Insured
,
4
%
,
12/01/40
...........
1,435,000
1,385,424
Hudson
City
School
District
,
GO
,
2018
,
4
%
,
12/01/45
........................
18,870,000
18,325,546
Indian
Creek
Local
School
District
,
GO,
2018
A,
5%,
11/01/55
...........................................
3,000,000
3,113,746
GO,
2018
B,
BAM
Insured,
5%,
11/01/55
................................
3,910,000
4,128,761
Lakota
Local
School
District
,
GO,
2005,
Refunding,
NATL
Insured,
5.25%,
12/01/26
......................
2,000,000
2,167,599
GO,
2014
C,
Pre-Refunded,
5%,
12/01/30
...............................
4,035,000
4,169,331
Licking
Heights
Local
School
District
,
GO
,
2022
,
4.5
%
,
10/01/51
................
1,800,000
1,805,426
Little
Miami
Local
School
District
,
GO,
2018,
5%,
11/01/43
.............................................
1,000,000
1,025,265
GO,
2018,
5%,
11/01/48
.............................................
2,460,000
2,512,163
Madeira
City
School
District
,
GO
,
Refunding
,
AGMC
Insured
,
5.25
%
,
12/01/32
.....
9,605,000
11,182,515
Miami
University
,
Revenue,
2014,
Refunding,
5%,
9/01/31
.................................
2,320,000
2,369,936
Revenue,
2014,
Refunding,
5%,
9/01/34
.................................
3,500,000
3,564,573
Revenue,
2017,
Refunding,
5%,
9/01/41
.................................
5,000,000
5,226,674
Revenue,
2022
A,
Refunding,
5%,
9/01/34
...............................
1,000,000
1,144,070
Miami
Valley
Career
Technology
Center
,
GO
,
2018
,
5
%
,
12/01/44
...............
20,000,000
21,169,240
Northeast
Ohio
Medical
University
,
Revenue,
2021
A,
Refunding,
3%,
12/01/23
..............................
75,000
74,638
Revenue,
2021
A,
Refunding,
5%,
12/01/25
..............................
125,000
128,720
Revenue,
2021
A,
Refunding,
5%,
12/01/27
..............................
100,000
105,472
Revenue,
2021
A,
Refunding,
5%,
12/01/29
..............................
110,000
118,276
Franklin
Tax-Free
Trust
Schedule
of
Investments
Franklin
Ohio
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)
Ohio
(continued)
Northeast
Ohio
Medical
University,
(continued)
Revenue,
2021
A,
Refunding,
3%,
12/01/40
..............................
$
500,000
$
386,942
Revenue,
2021
A,
Refunding,
4%,
12/01/45
..............................
450,000
394,925
Revenue,
2022,
BAM
Insured,
5%,
12/01/43
.............................
1,000,000
1,041,946
Northeast
Ohio
Regional
Sewer
District
,
Revenue
,
2019
,
Refunding
,
3
%
,
11/15/35
..
4,500,000
4,101,549
Northeastern
Local
School
District
,
GO,
2018,
AGMC
Insured,
5.25%,
12/01/45
..............................
5,420,000
5,837,155
GO,
2018,
AGMC
Insured,
4%,
12/01/55
................................
5,000,000
4,473,540
Norwood
City
School
District
,
GO,
2017
A,
Pre-Refunded,
5%,
11/01/46
...............................
5,000,000
5,310,151
GO,
2017
A,
Pre-Refunded,
5.25%,
11/01/51
.............................
7,645,000
8,176,555
c
Ohio
Air
Quality
Development
Authority
,
Ohio
Valley
Electric
Corp.,
Revenue,
2009
B,
Mandatory
Put,
1.375%,
11/01/24
...
1,875,000
1,761,340
Ohio
Valley
Electric
Corp.,
Revenue,
2009
C,
Mandatory
Put,
1.5%,
11/04/25
.....
2,000,000
1,816,746
Ohio
Center
Local
Government
Capital
Asset
Financing
Program
,
GO
,
2003
,
AGMC
Insured
,
5.25
%
,
12/01/23
............................................
120,000
120,222
Ohio
Higher
Educational
Facility
Commission
,
Ashtabula
County
Medical
Center
Obligated
Group,
Revenue,
2022,
5.25%,
1/01/52
4,895,000
4,955,348
Baldwin
Wallace
University,
Revenue,
2022,
6%,
12/01/52
...................
5,970,000
6,315,107
Capital
University,
Revenue,
2022,
Refunding,
6%,
9/01/42
..................
4,900,000
5,097,989
Capital
University,
Revenue,
2022,
Refunding,
6%,
9/01/47
..................
2,000,000
2,062,319
Capital
University,
Revenue,
2022,
Refunding,
6%,
9/01/52
..................
5,100,000
5,234,790
Case
Western
Reserve
University,
Revenue,
2016,
Refunding,
5%,
12/01/40
.....
6,000,000
6,224,752
Cleveland
Institute
of
Music
(The),
Revenue,
2022,
5%,
12/01/32
..............
300,000
318,322
Cleveland
Institute
of
Music
(The),
Revenue,
2022,
5.125%,
12/01/42
...........
3,390,000
3,425,003
Cleveland
Institute
of
Music
(The),
Revenue,
2022,
5.375%,
12/01/52
...........
3,100,000
3,142,225
Denison
University,
Revenue,
2021,
3%,
11/01/50
.........................
4,250,000
2,914,494
John
Carroll
University,
Revenue,
2020,
4%,
10/01/45
......................
1,100,000
933,846
John
Carroll
University,
Revenue,
2020,
4%,
10/01/50
......................
3,500,000
2,885,325
John
Carroll
University,
Revenue,
2022,
Refunding,
4%,
10/01/47
..............
11,360,000
9,525,505
John
Carroll
University,
Revenue,
2022,
Refunding,
4%,
10/01/52
..............
5,000,000
4,070,228
Judson
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
12/01/42
...........
1,540,000
1,435,531
Judson
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
12/01/45
...........
1,360,000
1,245,848
Judson
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
12/01/50
...........
2,900,000
2,603,637
Kenyon
College,
Revenue,
2016,
Refunding,
5%,
7/01/42
...................
5,320,000
5,472,539
Kenyon
College,
Revenue,
2016,
Refunding,
4%,
7/01/44
...................
5,180,000
4,779,646
Kenyon
College,
Revenue,
2017,
5%,
7/01/42
............................
1,250,000
1,295,716
Kenyon
College,
Revenue,
2017,
4%,
7/01/47
............................
4,000,000
3,570,306
Otterbein
Homes
Obligated
Group,
Revenue,
2021
B,
Refunding,
4%,
7/01/46
....
1,085,000
920,065
Otterbein
University,
Revenue,
2022
A,
Refunding,
4%,
12/01/37
..............
1,050,000
974,956
Otterbein
University,
Revenue,
2022
A,
Refunding,
4%,
12/01/38
..............
1,055,000
968,932
Otterbein
University,
Revenue,
2022
A,
Refunding,
4%,
12/01/39
..............
1,105,000
1,002,357
Otterbein
University,
Revenue,
2022
A,
Refunding,
4%,
12/01/40
..............
1,225,000
1,097,188
Otterbein
University,
Revenue,
2022
A,
Refunding,
4%,
12/01/41
..............
1,275,000
1,128,461
Otterbein
University,
Revenue,
2022
A,
Refunding,
4%,
12/01/46
..............
1,975,000
1,679,223
University
of
Dayton,
Revenue,
2018
A,
4%,
12/01/43
.......................
11,885,000
11,164,489
University
of
Dayton,
Revenue,
2020,
Refunding,
5%,
2/01/28
................
150,000
161,795
University
of
Dayton,
Revenue,
2020,
Refunding,
5%,
2/01/29
................
415,000
454,367
University
of
Dayton,
Revenue,
2020,
Refunding,
5%,
2/01/30
................
400,000
443,943
University
of
Dayton,
Revenue,
2020,
Refunding,
5%,
2/01/31
................
550,000
605,297
University
of
Dayton,
Revenue,
2020,
Refunding,
5%,
2/01/32
................
340,000
373,815
University
of
Dayton,
Revenue,
2020,
Refunding,
5%,
2/01/33
................
130,000
142,793
University
of
Dayton,
Revenue,
2020,
Refunding,
5%,
2/01/34
................
500,000
547,351
University
of
Dayton,
Revenue,
2020,
Refunding,
5%,
2/01/35
................
1,000,000
1,087,560
University
of
Dayton,
Revenue,
2020,
Refunding,
4%,
2/01/36
................
900,000
904,484
University
of
Dayton,
Revenue,
2020,
Refunding,
3%,
2/01/37
................
1,335,000
1,099,194
University
of
Dayton,
Revenue,
2020,
Refunding,
4%,
2/01/39
................
480,000
463,850
Franklin
Tax-Free
Trust
Schedule
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)
Ohio
Higher
Educational
Facility
Commission,
(continued)
University
of
Dayton,
Revenue,
2020,
Refunding,
3%,
2/01/40
................
$
500,000
$
385,089
University
of
Dayton,
Revenue,
2020,
Refunding,
4%,
2/01/41
................
250,000
236,836
University
of
Dayton,
Revenue,
2020,
Refunding,
3%,
2/01/42
................
325,000
241,070
Ohio
Housing
Finance
Agency
,
Revenue
,
2020
B
,
GNMA
Insured
,
2.1
%
,
9/01/35
....
500,000
411,453
Ohio
State
University
(The)
,
Revenue,
2014
A,
4%,
12/01/30
.......................................
4,325,000
4,392,833
Revenue,
2021
A,
4%,
12/01/48
.......................................
10,020,000
9,528,408
Ohio
Turnpike
&
Infrastructure
Commission
,
Revenue,
2018
A,
5%,
2/15/43
........................................
16,325,000
17,183,699
Revenue,
2018
A,
5%,
2/15/43
........................................
17,025,000
17,959,817
Revenue,
Junior
Lien,
2013
A-2,
BAM
Insured,
Zero
Cpn.,
2/15/38
.............
3,665,000
1,962,658
Revenue,
Junior
Lien,
2013
A-2,
Zero
Cpn.,
2/15/43
........................
10,485,000
4,162,826
Revenue,
Junior
Lien,
2022
A,
Refunding,
5%,
2/15/39
......................
5,000,000
5,646,410
Ohio
University
,
Revenue
,
2017
A
,
Refunding
,
5
%
,
12/01/44
...................
7,000,000
7,288,247
Ohio
Water
Development
Authority
,
Revenue,
2019,
5%,
12/01/39
........................................
5,000,000
5,493,096
Revenue,
2019,
5%,
6/01/44
.........................................
5,650,000
6,098,479
Revenue,
2021,
5%,
6/01/46
.........................................
10,555,000
11,470,032
Water
Pollution
Control
Loan
Fund,
Revenue,
2019
B,
Refunding,
5%,
12/01/44
...
10,000,000
10,793,769
Water
Pollution
Control
Loan
Fund,
Revenue,
2020
A,
5%,
12/01/39
............
5,000,000
5,515,288
Water
Pollution
Control
Loan
Fund,
Revenue,
2020
A,
5%,
12/01/50
............
2,500,000
2,672,576
Olentangy
Local
School
District
,
GO,
2016,
4%,
12/01/46
.............................................
15,235,000
14,726,157
GO,
2020
A,
3%,
12/01/38
...........................................
500,000
438,923
Princeton
City
School
District
,
GO,
2014,
Pre-Refunded,
5%,
12/01/39
.................................
12,000,000
12,399,499
GO,
2014,
Refunding,
Zero
Cpn.,
12/01/40
...............................
6,000,000
2,901,810
GO,
2014,
Refunding,
Zero
Cpn.,
12/01/41
...............................
6,000,000
2,774,260
Reading
Community
City
School
District
,
GO
,
2016
A
,
5
%
,
11/01/46
.............
2,000,000
2,031,296
Springboro
Community
City
School
District
,
GO,
2007,
Refunding,
AGMC
Insured,
5.25%,
12/01/27
.....................
5,175,000
5,659,987
GO,
2007,
Refunding,
AGMC
Insured,
5.25%,
12/01/28
.....................
2,000,000
2,229,567
State
of
Ohio
,
GO,
2017
A,
5%,
3/15/36
............................................
5,000,000
5,078,785
GO,
2018
A,
5%,
6/15/38
............................................
10,000,000
10,418,424
GO,
2019
A,
5%,
6/15/38
............................................
6,500,000
7,145,374
GO,
2020
C,
5%,
3/01/38
............................................
2,300,000
2,583,078
GO,
V,
5%,
5/01/33
................................................
1,000,000
1,109,489
GO,
V,
5%,
5/01/34
................................................
4,000,000
4,413,527
Cleveland
Clinic
Health
System
Obligated
Group,
Revenue,
2017
A,
Refunding,
3.25%,
1/01/35
..................................................
10,000,000
9,669,196
Cleveland
Clinic
Health
System
Obligated
Group,
Revenue,
2021
B,
Refunding,
5%,
1/01/29
........................................................
4,850,000
5,392,428
Department
of
Administrative
Services,
Revenue,
2021
A,
5%,
4/01/39
..........
1,000,000
1,104,479
Department
of
Administrative
Services,
Revenue,
2021
A,
5%,
4/01/40
..........
1,110,000
1,220,101
Department
of
Administrative
Services,
Revenue,
2021
A,
5%,
4/01/41
..........
750,000
820,983
Premier
Health
Partners
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/15/37
1,000,000
928,942
Premier
Health
Partners
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/15/39
875,000
796,682
University
Hospitals
Health
System,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
3%,
1/15/45
............................................
5,000,000
3,725,103
University
Hospitals
Health
System,
Inc.
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
1/15/46
............................................
18,795,000
17,026,565
Franklin
Tax-Free
Trust
Schedule
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)
Summit
County
Development
Finance
Authority
,
City
of
Akron
,
Revenue
,
2022
,
4
%
,
5/15/46
......................................................
$
5,585,000
$
4,903,899
Sycamore
Community
City
School
District
,
GO
,
2020
,
4
%
,
12/01/45
.............
6,000,000
5,826,883
Sylvania
City
School
District
,
GO
,
2015
,
Refunding
,
BAM
Insured
,
5
%
,
12/01/36
....
9,700,000
9,985,294
Three
Rivers
Local
School
District
,
GO
,
2014
,
Refunding
,
5
%
,
12/01/39
...........
5,885,000
6,016,306
Toledo-Lucas
County
Port
Authority
,
Revenue,
2021
A,
2%,
11/15/31
.......................................
430,000
364,620
Revenue,
2021
A,
3%,
5/15/51
........................................
1,160,000
782,852
ParkUToledo,
Inc.,
Revenue,
2021,
4%,
1/01/46
...........................
1,625,000
1,295,749
ParkUToledo,
Inc.,
Revenue,
2021,
4%,
1/01/51
...........................
2,840,000
2,160,617
ParkUToledo,
Inc.,
Revenue,
2021,
4%,
1/01/57
...........................
6,000,000
4,447,351
Triway
Local
School
District
,
COP
,
2021
,
BAM
Insured
,
4
%
,
12/01/39
............
2,200,000
2,175,808
University
of
Akron
(The)
,
Revenue,
2015
A,
Refunding,
5%,
1/01/31
...............................
4,365,000
4,455,138
Revenue,
2016
A,
Refunding,
BAM
Insured,
5%,
1/01/34
....................
6,000,000
6,140,846
Revenue,
2016
A,
Refunding,
5%,
1/01/36
...............................
11,065,000
11,293,718
Revenue,
2016
A,
Refunding,
5%,
1/01/38
...............................
13,225,000
13,461,405
Revenue,
2018
A,
Refunding,
5%,
1/01/42
...............................
5,725,000
5,886,594
University
of
Cincinnati
,
Revenue
,
2018
A
,
Refunding
,
4
%
,
6/01/48
..............
10,000,000
9,415,854
Upper
Arlington
City
School
District
,
GO
,
2018
A
,
Pre-Refunded
,
5
%
,
12/01/48
.....
13,000,000
14,317,169
Village
of
Bluffton
,
Blanchard
Valley
Health
System
Obligated
Group,
Revenue,
2017,
Refunding,
4%,
12/01/33
.......................................................
1,655,000
1,670,744
Blanchard
Valley
Health
System
Obligated
Group,
Revenue,
2017,
Refunding,
4%,
12/01/34
.......................................................
1,900,000
1,917,889
Warren
County
Port
Authority
,
Ohio
Communities
Accelerator
Fund,
Revenue,
2021
C,
4%,
12/01/41
..........
2,075,000
1,757,403
Ohio
Communities
Accelerator
Fund,
Revenue,
2021
C,
4%,
12/01/55
..........
3,500,000
2,711,595
Ohio
Communities
Accelerator
Fund,
Revenue,
2021
D,
5%,
12/01/46
..........
3,895,000
3,229,555
Ohio
Communities
Accelerator
Fund,
Revenue,
2021
H,
4%,
12/01/41
..........
570,000
483,965
Ohio
Communities
Accelerator
Fund,
Revenue,
2021
H,
4%,
12/01/53
..........
1,375,000
1,074,206
Ohio
Communities
Accelerator
Fund,
Revenue,
2022
A,
5.5%,
12/01/50
.........
3,210,000
3,117,898
Ohio
Communities
Accelerator
Fund,
Revenue,
2022
B,
4.75%,
12/01/34
........
1,100,000
1,104,539
Warren
County
Port
Authority
Ohio
Communities
Accelerator
Fund,
Revenue,
2020
D-1,
Refunding,
3%,
12/01/30
.......................................
525,000
472,379
Warren
County
Port
Authority
Ohio
Communities
Accelerator
Fund,
Revenue,
2020
D-1,
Refunding,
4%,
12/01/40
.......................................
1,390,000
1,188,677
Warren
County
Port
Authority
Ohio
Communities
Accelerator
Fund,
Revenue,
2020
D-1,
Refunding,
4%,
12/01/52
.......................................
1,930,000
1,512,060
Warrensville
Heights
City
School
District
,
GO,
2019
A,
BAM
Insured,
5%,
12/01/44
................................
190,000
193,400
GO,
2019
A,
Pre-Refunded,
BAM
Insured,
5%,
12/01/44
.....................
460,000
474,917
GO,
2019
A,
Pre-Refunded,
BAM
Insured,
5.25%,
12/01/55
..................
1,740,000
1,803,766
West
Carrollton
City
School
District
,
GO
,
2020
A
,
3
%
,
12/01/44
.................
2,540,000
1,967,348
Westerville
City
School
District
,
GO
,
2006
,
Refunding
,
XLCA
Insured
,
5
%
,
12/01/27
..
3,820,000
4,134,412
Westlake
City
School
District
,
GO
,
2021
A
,
Refunding
,
4
%
,
12/01/49
.............
3,965,000
3,727,792
Willoughby-Eastlake
City
School
District
,
GO
,
2016
,
Pre-Refunded
,
5
%
,
12/01/46
...
10,000,000
10,527,000
Winton
Woods
City
School
District
,
GO,
2017,
Refunding,
4%,
11/01/43
....................................
7,000,000
6,807,282
GO,
2022,
Refunding,
BAM
Insured,
4%,
11/01/53
.........................
2,000,000
1,815,272
Wright
State
University
,
Revenue
,
2021
A
,
Refunding
,
BAM
Insured
,
5
%
,
5/01/30
...
1,285,000
1,444,886
Xenia
Community
School
District
,
GO
,
2014
,
Pre-Refunded
,
5
%
,
12/01/40
.........
7,285,000
7,514,957
1,064,096,232
Franklin
Tax-Free
Trust
Schedule
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)
South
Carolina
0.9%
South
Carolina
Jobs-Economic
Development
Authority
,
b
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
$
3,200,000
$
2,561,950
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
3,200,000
2,554,098
b
Columbia
Portfolio
Obligated
Group,
Revenue,
144A,
2022
A-1,
Zero
Cpn.,
6/01/37
5,250,000
3,441,742
b
South
Carolina
State
Housing
Finance
&
Development
Authority
,
Garden
Oaks
LP
,
Revenue
,
144A,
2021
A
,
4.2
%
,
12/01/39
................................
3,200,000
2,444,476
11,002,266
Tennessee
0.1%
c
Tennessee
Energy
Acquisition
Corp.
,
Revenue
,
2021
A
,
Mandatory
Put
,
5
%
,
11/01/31
1,500,000
1,571,433
Texas
0.7%
b
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
4,300,000
3,189,478
Lake
Houston
Redevelopment
Authority
,
City
of
Houston
Reinvestment
Zone
No.
10,
Revenue,
2021,
Refunding,
3%,
9/01/38
300,000
235,252
City
of
Houston
Reinvestment
Zone
No.
10,
Revenue,
2021,
Refunding,
3%,
9/01/47
1,000,000
689,983
b
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
A-2
,
5
%
,
12/01/52
............
6,000,000
4,389,578
8,504,291
Washington
0.2%
b
Washington
State
Housing
Finance
Commission
,
Madison
at
Rivers
Edge
Apartments
LLC
,
Revenue
,
144A,
2021
A
,
3.65
%
,
1/01/37
............................
3,200,000
2,562,061
Wisconsin
1.1%
b
Public
Finance
Authority
,
Revenue,
144A,
2022,
B-1,
4%,
12/28/44
................................
3,100,000
2,456,297
FAH
Tree
House
LLC,
Revenue,
144A,
2023
A,
6.5%,
8/01/53
................
2,800,000
2,792,424
Gulf
Coast
Portfolio
Obligated
Group,
Revenue,
144A,
2021,
5.25%,
12/01/23
....
8,200,000
8,200,000
13,448,721
U.S.
Territories
1.5%
Puerto
Rico
1.5%
HTA
HRRB
Custodial
Trust
,
Revenue,
2007
CC,
5.5%,
7/01/31
.....................................
3,370,000
3,474,099
Revenue,
2007
CC,
5.25%,
7/01/32
....................................
2,890,000
2,928,064
Revenue,
2007
CC,
5.25%,
7/01/34
....................................
800,000
806,368
HTA
TRRB
Custodial
Trust
,
Revenue,
2005
L,
5.25%,
7/01/41
.....................................
4,515,000
4,564,608
Revenue,
2007
N,
5.25%,
7/01/36
.....................................
1,575,000
1,589,028
Revenue,
2007
N,
5.25%,
7/01/39
.....................................
540,000
545,518
Puerto
Rico
Electric
Power
Authority
,
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/32
....................
1,000,000
1,002,594
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/34
....................
1,000,000
1,002,976
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
480,902
Hospital
Auxilio
Mutuo
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
7/01/35
..
235,000
252,888
Puerto
Rico
Sales
Tax
Financing
Corp.
,
Sales
Tax
,
Revenue
,
A-1
,
5
%
,
7/01/58
.....
1,100,000
1,020,580
17,667,625
Total
U.S.
Territories
....................................................................
17,667,625
Total
Municipal
Bonds
(Cost
$1,210,685,723)
...................................
1,151,816,701
Total
Long
Term
Investments
(Cost
$1,213,885,723)
.............................
1,154,960,139
a
a
a
a
a
Franklin
Tax-Free
Trust
Schedule
of
Investments
Franklin
Ohio
Tax-Free
Income
Fund
(continued)
franklintempleton.com
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
120
s
See
Abbreviations
on
page
171
.
Short
Term
Investments
2.5%
a
a
Principal
Amount
a
Value
Municipal
Bonds
2.5%
Ohio
2.5%
d
County
of
Allen
Hospital
Facilities
,
Bon
Secours
Mercy
Health,
Inc.
,
Revenue
,
2010
C
,
LOC
Bank
of
Montreal
,
Daily
VRDN
and
Put
,
2.65
%
,
6/01/34
.................
$
30,335,000
$
30,335,000
Total
Municipal
Bonds
(Cost
$30,335,046)
......................................
30,335,000
Total
Short
Term
Investments
(Cost
$30,335,046
)
................................
30,335,000
a
Total
Investments
(Cost
$1,244,220,769)
98.7%
..................................
$1,185,295,139
Other
Assets,
less
Liabilities
1.3%
.............................................
15,523,528
Net
Assets
100.0%
...........................................................
$1,200,818,667
a
Fair
valued
using
significant
unobservable
inputs.
See
Note
12
regarding
fair
value
measurements.
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,
2023,
the
aggregate
value
of
these
securities
was
$43,468,572,
representing
3.6%
of
net
assets.
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
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Oregon
Tax
-
Free
Income
Fund
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an
integral
part
of
these
financial
statements.
Annual
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121
a
Year
Ended
February
28,
Year
Ended
February
28,
2019
b
2023
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.45
$11.73
$12.00
$11.37
$11.30
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.27
0.23
0.26
0.30
0.16
Net
realized
and
unrealized
gains
(losses)
...........
(1.10)
(0.28)
(0.27)
0.64
0.07
Total
from
investment
operations
....................
(0.83)
(0.05)
(0.01)
0.94
0.23
Less
distributions
from:
Net
investment
income
..........................
(0.27)
(0.23)
(0.26)
(0.31)
(0.16)
Net
asset
value,
end
of
year
.......................
$10.35
$11.45
$11.73
$12.00
$11.37
Total
return
e
...................................
(7.27)%
(0.48)%
(0.07)%
8.39%
2.09%
Ratios
to
average
net
assets
f
Expenses
g
....................................
0.81%
0.80%
0.80%
0.80%
0.80%
Net
investment
income
...........................
2.56%
1.93%
2.20%
2.58%
3.05%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$208,460
$251,006
$218,010
$162,664
$62,119
Portfolio
turnover
rate
............................
32.94%
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)
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The
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part
of
these
financial
statements.
122
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.44
$11.72
$11.99
$11.36
$11.37
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.29
0.25
0.28
0.32
0.36
Net
realized
and
unrealized
gains
(losses)
...........
(1.11)
(0.28)
(0.27)
0.64
(0.01)
Total
from
investment
operations
....................
(0.82)
(0.03)
0.01
0.96
0.35
Less
distributions
from:
Net
investment
income
..........................
(0.28)
(0.25)
(0.28)
(0.33)
(0.36)
Net
asset
value,
end
of
year
.......................
$10.34
$11.44
$11.72
$11.99
$11.36
Total
return
d
...................................
(7.14)%
(0.33)%
0.08%
8.56%
3.13%
Ratios
to
average
net
assets
Expenses
e
....................................
0.66%
0.65%
0.65%
0.65%
0.65%
Net
investment
income
...........................
2.71%
2.08%
2.37%
2.73%
3.20%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$562,620
$731,732
$805,688
$866,593
$843,042
Portfolio
turnover
rate
............................
32.94%
19.83%
18.23%
15.49%
9.09%
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)
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The
accompanying
notes
are
an
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part
of
these
financial
statements.
Annual
Report
123
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.63
$11.91
$12.19
$11.54
$11.55
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.23
0.18
0.22
0.26
0.30
Net
realized
and
unrealized
gains
(losses)
...........
(1.14)
(0.28)
(0.29)
0.66
(0.01)
Total
from
investment
operations
....................
(0.91)
(0.10)
(0.07)
0.92
0.29
Less
distributions
from:
Net
investment
income
..........................
(0.22)
(0.18)
(0.21)
(0.27)
(0.30)
Net
asset
value,
end
of
year
.......................
$10.50
$11.63
$11.91
$12.19
$11.54
Total
return
d
...................................
(7.79)%
(0.79)%
(0.63)%
8.05%
2.51%
Ratios
to
average
net
assets
Expenses
e
....................................
1.20%
1.19%
1.19%
1.20%
1.20%
Net
investment
income
...........................
2.10%
1.50%
1.80%
2.18%
2.65%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$43,030
$72,237
$98,075
$127,898
$128,133
Portfolio
turnover
rate
............................
32.94%
19.83%
18.23%
15.49%
9.09%
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)
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The
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part
of
these
financial
statements.
124
In
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.45
$11.73
$12.00
$11.37
$11.38
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.30
0.26
0.29
0.33
0.38
Net
realized
and
unrealized
gains
(losses)
...........
(1.10)
(0.28)
(0.27)
0.64
(0.02)
Total
from
investment
operations
....................
(0.80)
(0.02)
0.02
0.97
0.36
Less
distributions
from:
Net
investment
income
..........................
(0.30)
(0.26)
(0.29)
(0.34)
(0.37)
Net
asset
value,
end
of
year
.......................
$10.35
$11.45
$11.73
$12.00
$11.37
Total
return
....................................
(7.01)%
(0.12)%
0.12%
8.69%
3.24%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.53%
0.52%
0.52%
0.53%
0.53%
Expenses
net
of
waiver
and
payments
by
affiliates
d
......
0.52%
0.52%
e
0.52%
e
0.52%
0.52%
Net
investment
income
...........................
2.85%
2.21%
2.49%
2.86%
3.33%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$21,344
$26,269
$22,928
$19,823
$13,308
Portfolio
turnover
rate
............................
32.94%
19.83%
18.23%
15.49%
9.09%
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
Financial
Highlights
Franklin
Oregon
Tax
-
Free
Income
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part
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statements.
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125
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$11.46
$11.73
$12.01
$11.37
$11.38
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.30
0.26
0.29
0.33
0.37
Net
realized
and
unrealized
gains
(losses)
...........
(1.12)
(0.27)
(0.28)
0.65
(0.01)
Total
from
investment
operations
....................
(0.82)
(0.01)
0.01
0.98
0.36
Less
distributions
from:
Net
investment
income
..........................
(0.29)
(0.26)
(0.29)
(0.34)
(0.37)
Net
asset
value,
end
of
year
.......................
$10.35
$11.46
$11.73
$12.01
$11.37
Total
return
....................................
(7.12)%
(0.15)%
0.09%
8.75%
3.22%
Ratios
to
average
net
assets
Expenses
d
....................................
0.56%
0.55%
0.55%
0.55%
0.55%
Net
investment
income
...........................
2.80%
2.18%
2.45%
2.83%
3.30%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$134,222
$181,163
$171,322
$145,073
$107,253
Portfolio
turnover
rate
............................
32.94
%
19.83%
18.23%
15.49%
9.09%
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
Schedule
of
Investments,
February
28,
2023
Franklin
Oregon
Tax-Free
Income
Fund
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part
of
these
financial
statements.
126
a
a
Principal
Amount
a
Value
a
a
a
a
a
Corporate
Bonds
0.3%
Software
0.3%
a
Haven
at
Elgin
LLC
,
5.25
%
,
12/31/53
....................................
$
2,500,000
$
2,455,810
Total
Corporate
Bonds
(Cost
$2,500,000)
.......................................
2,455,810
Municipal
Bonds
98.5%
California
0.3%
California
Municipal
Finance
Authority
,
Revenue
,
2022
A-1
,
4.25
%
,
12/01/37
.......
3,500,000
2,914,859
Florida
0.6%
b
Capital
Trust
Agency,
Inc.
,
SHI
-
Lake
Osborne
LLC
,
Revenue
,
144A,
2021
A-1
,
3.68
%
,
1/01/57
.........................................................
1,500,000
1,011,201
b
Leon
County
Housing
Finance
Authority
,
Revenue
,
144A,
2022
A
,
Zero
Cpn.,
5/01/57
5,600,000
4,550,000
5,561,201
Illinois
0.4%
Metropolitan
Pier
&
Exposition
Authority
,
Revenue
,
2022
A
,
Refunding
,
4
%
,
12/15/42
.
5,000,000
4,308,189
Kentucky
0.6%
b
Louisville/Jefferson
County
Metropolitan
Government
,
PSG
Vesta
Derby
Oaks
LLC
,
Revenue
,
144A,
Zero
Cpn.,
5/01/52
....................................
8,300,000
5,428,271
New
Jersey
0.8%
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue,
2019
BB,
5%,
6/15/44
.......................................
2,250,000
2,309,982
Revenue,
2020
AA,
4%,
6/15/45
.......................................
2,000,000
1,833,887
Revenue,
2020
AA,
3%,
6/15/50
.......................................
1,000,000
709,984
Revenue,
2021
A,
Refunding,
4%,
6/15/36
...............................
1,000,000
1,000,086
Revenue,
2022
A,
4%,
6/15/38
........................................
2,165,000
2,111,494
7,965,433
New
York
0.5%
Metropolitan
Transportation
Authority
,
Revenue
,
2021
A-1
,
4
%
,
11/15/47
..........
5,500,000
4,752,284
Oregon
88.8%
Astoria
Hospital
Facilities
Authority
,
Columbia
Lutheran
Charities
Obligated
Group,
Revenue,
2016,
5%,
8/01/41
......
4,250,000
4,302,007
Columbia
Lutheran
Charities
Obligated
Group,
Revenue,
2016,
4%,
8/01/46
......
1,750,000
1,525,420
Benton
&
Polk
School
District
No.
17J
,
GO
,
2010
B
,
Zero
Cpn.,
6/15/31
...........
1,000,000
730,078
Central
Lincoln
People's
Utility
District
JATC,
Inc.
,
Revenue
,
2016
,
5
%
,
12/01/45
....
2,900,000
2,980,960
City
of
Beaverton
,
Water,
Revenue,
2020,
5%,
4/01/36
....................................
1,760,000
1,966,691
Water,
Revenue,
2020,
5%,
4/01/37
....................................
1,850,000
2,053,940
Water,
Revenue,
2020,
5%,
4/01/38
....................................
1,940,000
2,140,161
Water,
Revenue,
2020,
5%,
4/01/39
....................................
2,040,000
2,240,613
Water,
Revenue,
2020,
5%,
4/01/40
....................................
2,140,000
2,340,366
City
of
Eugene
,
Electric
Utility
System
,
Revenue
,
2017
,
5
%
,
8/01/47
.............
3,580,000
3,745,424
City
of
Forest
Grove
,
Oak
Tree
Foundation,
Inc.,
Revenue,
2017,
Refunding,
4%,
3/01/37
............
3,500,000
3,271,270
Pacific
University,
Revenue,
2015
A,
Refunding,
5%,
5/01/36
.................
4,075,000
4,144,447
Pacific
University,
Revenue,
2022
A,
Refunding,
5%,
5/01/26
.................
335,000
345,233
Pacific
University,
Revenue,
2022
A,
Refunding,
5%,
5/01/27
.................
1,195,000
1,243,900
Pacific
University,
Revenue,
2022
A,
Refunding,
5%,
5/01/29
.................
1,315,000
1,393,741
Pacific
University,
Revenue,
2022
A,
Refunding,
5%,
5/01/30
.................
1,385,000
1,477,343
Pacific
University,
Revenue,
2022
A,
Refunding,
5%,
5/01/31
.................
1,450,000
1,555,215
Pacific
University,
Revenue,
2022
A,
Refunding,
5%,
5/01/32
.................
1,525,000
1,631,469
Pacific
University,
Revenue,
2022
A,
Refunding,
5%,
5/01/33
.................
1,600,000
1,706,670
Pacific
University,
Revenue,
2022
A,
Refunding,
4%,
5/01/35
.................
490,000
472,362
Pacific
University,
Revenue,
2022
A,
Refunding,
4%,
5/01/37
.................
1,905,000
1,783,203
Pacific
University,
Revenue,
2022
A,
Refunding,
4%,
5/01/38
.................
3,960,000
3,673,546
Franklin
Tax-Free
Trust
Schedule
of
Investments
Franklin
Oregon
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)
Oregon
(continued)
City
of
Forest
Grove,
(continued)
Pacific
University,
Revenue,
2022
A,
Refunding,
4%,
5/01/39
.................
$
1,750,000
$
1,605,991
City
of
Keizer
,
Special
Assessment
,
2008
,
5.2
%
,
6/01/31
......................
1,245,000
1,267,304
City
of
Portland
,
Water
System
,
Revenue,
Second
Lien
,
2019
A
,
5
%
,
5/01/44
.......
5,500,000
5,915,001
City
of
Tigard
,
Water
,
Revenue
,
2015
,
5
%
,
8/01/45
..........................
23,545,000
24,120,557
Clackamas
Community
College
District
,
GO,
2017
A,
5%,
6/15/38
............................................
760,000
806,764
GO,
2017
A,
5%,
6/15/39
............................................
1,000,000
1,059,076
GO,
2017
A,
5%,
6/15/40
............................................
1,250,000
1,320,277
Clackamas
County
School
District
No.
12
North
Clackamas
,
GO,
2017
A,
Zero
Cpn.,
6/15/40
.......................................
10,000,000
4,567,229
GO,
2017
A,
Zero
Cpn.,
6/15/41
.......................................
17,030,000
7,377,805
GO,
2017
A,
Zero
Cpn.,
6/15/42
.......................................
16,625,000
6,852,236
GO,
2017
B,
5%,
6/15/34
............................................
8,000,000
8,568,026
GO,
2017
B,
5%,
6/15/37
............................................
10,000,000
10,582,599
GO,
2018,
5%,
6/15/42
.............................................
1,750,000
1,853,149
Clackamas
County
School
District
No.
46
Oregon
Trail
,
GO,
Zero
Cpn.,
6/15/37
.............................................
12,130,000
6,497,949
GO,
Zero
Cpn.,
6/15/38
.............................................
12,495,000
6,337,504
Clackamas
County
School
District
No.
7J
Lake
Oswego
,
GO
,
2005
,
Refunding
,
AGMC
Insured
,
5.25
%
,
6/01/25
.............................................
3,075,000
3,223,252
Clackamas
River
Water
,
Revenue
,
2016
,
5
%
,
11/01/43
.......................
1,970,000
2,014,630
Coos
County
School
District
No.
9
Coos
Bay
,
GO
,
2018
,
5
%
,
6/15/43
............
5,005,000
5,335,892
County
of
Yamhill
,
George
Fox
University,
Revenue,
2021,
Refunding,
4%,
12/01/24
..............
750,000
754,666
George
Fox
University,
Revenue,
2021,
Refunding,
4%,
12/01/29
..............
910,000
939,446
George
Fox
University,
Revenue,
2021,
Refunding,
4%,
12/01/31
..............
990,000
1,021,584
George
Fox
University,
Revenue,
2021,
Refunding,
4%,
12/01/36
..............
2,585,000
2,535,424
George
Fox
University,
Revenue,
2021,
Refunding,
4%,
12/01/46
..............
3,830,000
3,385,206
Linfield
University,
Revenue,
2020
A,
Refunding,
5%,
10/01/40
................
7,010,000
7,144,626
Linfield
University,
Revenue,
2020
A,
Refunding,
5%,
10/01/45
................
9,285,000
9,355,825
Deschutes
County
Hospital
Facilities
Authority
,
St.
Charles
Health
System
Obligated
Group
,
Revenue
,
2016
A
,
Refunding
,
5
%
,
1/01/48
.........................
8,440,000
8,533,205
Hospital
Facilities
Authority
of
Multnomah
County
Oregon
,
Terwilliger
Plaza,
Inc.
Obligated
Group
,
Revenue
,
2012
,
Refunding
,
5
%
,
12/01/29
..................
3,690,000
3,654,355
Jackson
County
School
District
No.
5
Ashland
,
GO,
2019,
5%,
6/15/42
.............................................
5,970,000
6,401,790
GO,
2019,
5%,
6/15/43
.............................................
6,495,000
6,955,438
GO,
2019,
5%,
6/15/44
.............................................
6,000,000
6,412,521
Jackson
County
School
District
No.
6
Central
Point
,
GO,
2019
B,
Zero
Cpn.,
6/15/40
.......................................
705,000
324,174
GO,
2019
B,
Zero
Cpn.,
6/15/41
.......................................
710,000
307,589
GO,
2019
B,
Zero
Cpn.,
6/15/42
.......................................
610,000
248,594
GO,
2019
B,
Zero
Cpn.,
6/15/43
.......................................
820,000
316,160
GO,
2019
B,
Zero
Cpn.,
6/15/44
.......................................
1,115,000
405,340
GO,
2019
B,
Zero
Cpn.,
6/15/45
.......................................
985,000
337,241
GO,
2019
B,
Zero
Cpn.,
6/15/46
.......................................
1,190,000
384,255
GO,
2019
B,
Zero
Cpn.,
6/15/47
.......................................
1,170,000
356,194
GO,
2019
B,
Zero
Cpn.,
6/15/48
.......................................
1,320,000
378,918
Klamath
Falls
Intercommunity
Hospital
Authority
,
Sky
Lakes
Medical
Center,
Inc.
,
Revenue
,
2016
,
Refunding
,
5
%
,
9/01/46
.................................
1,000,000
1,013,630
Lane
&
Douglas
Counties
School
District
No.
28J
Fern
Ridge
,
GO,
2014
A,
5%,
6/15/30
............................................
695,000
738,403
GO,
2014
A,
Pre-Refunded,
5%,
6/15/30
................................
2,480,000
2,640,151
GO,
2014
A,
Pre-Refunded,
5%,
6/15/33
................................
2,115,000
2,255,001
GO,
2014
A,
Pre-Refunded,
5%,
6/15/36
................................
2,000,000
2,132,389
Franklin
Tax-Free
Trust
Schedule
of
Investments
Franklin
Oregon
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)
Oregon
(continued)
Marion
&
Linn
Counties
School
District
No.
14J
Jefferson
,
GO
,
2017
B
,
5
%
,
6/15/41
.
$
1,360,000
$
1,433,695
Medford
Hospital
Facilities
Authority
,
Asante
Health
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
AGMC
Insured,
4%,
8/15/45
..............................................
5,620,000
5,287,676
Asante
Health
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
8/15/45
8,245,000
8,578,707
Asante
Health
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
8/15/50
5,685,000
4,985,486
Asante
Health
System
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
8/15/50
4,500,000
4,656,430
Rogue
Valley
Manor,
Revenue,
2013
A,
Refunding,
5%,
10/01/33
..............
1,500,000
1,511,931
Rogue
Valley
Manor,
Revenue,
2013
A,
Refunding,
5%,
10/01/42
..............
9,420,000
9,462,507
Metro
,
County
of
Multnomah,
Revenue,
2017,
5%,
6/15/42
........................
7,500,000
7,885,108
County
of
Multnomah,
Revenue,
2017,
5%,
6/15/47
........................
10,950,000
11,441,554
Multnomah
&
Clackamas
Counties
School
District
No.
10JT
Gresham-Barlow
,
GO,
2017
B,
5%,
6/15/37
............................................
7,885,000
8,386,344
GO,
2019
A,
Zero
Cpn.,
6/15/39
.......................................
9,500,000
4,555,750
Multnomah
County
School
District
No.
40
,
GO,
2012
B,
Zero
Cpn.,
6/15/24
.......................................
1,640,000
1,562,839
GO,
2012
B,
Zero
Cpn.,
6/15/25
.......................................
1,325,000
1,218,027
GO,
2012
B,
Zero
Cpn.,
6/15/26
.......................................
2,585,000
2,296,850
GO,
2012
B,
Zero
Cpn.,
6/15/27
.......................................
2,655,000
2,280,200
GO,
2012
B,
Zero
Cpn.,
6/15/28
.......................................
2,495,000
2,071,791
GO,
2012
B,
Zero
Cpn.,
6/15/29
.......................................
2,595,000
2,080,703
GO,
2012
B,
Zero
Cpn.,
6/15/30
.......................................
1,885,000
1,455,379
GO,
2012
B,
Zero
Cpn.,
6/15/31
.......................................
2,030,000
1,506,367
GO,
2012
B,
Zero
Cpn.,
6/15/32
.......................................
2,000,000
1,422,799
Multnomah-Clackamas
Counties
Centennial
School
District
No.
28JT
,
GO
,
2020
,
Refunding
,
5
%
,
6/15/45
.............................................
13,000,000
14,071,931
Oregon
City
School
District
No.
62
,
GO
,
2018
B
,
Refunding
,
5
%
,
6/15/49
..........
17,000,000
18,041,614
Oregon
Health
&
Science
University
,
Oregon
Health
&
Science
University
Obligated
Group
,
Revenue
,
2017
A
,
5
%
,
7/01/42
..................................
10,000,000
10,454,612
Oregon
State
Facilities
Authority
,
b
CHNW
Clifton
House
LLC,
Revenue,
144A,
A,
4%,
10/01/26
.................
1,170,000
1,130,177
b
CHNW
Clifton
House
LLC,
Revenue,
144A,
A,
5%,
10/01/36
.................
1,670,000
1,561,932
b
CHNW
Clifton
House
LLC,
Revenue,
144A,
A,
5%,
10/01/48
.................
4,000,000
3,575,884
Legacy
Health
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
6/01/46
......
31,395,000
31,887,016
Legacy
Health
Obligated
Group,
Revenue,
2022
A,
4.125%,
6/01/52
...........
3,000,000
2,743,140
Providence
St.
Joseph
Health
Obligated
Group,
Revenue,
2015
C,
5%,
10/01/45
..
4,000,000
4,010,598
Samaritan
Health
Services,
Inc.
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
10/01/41
.......................................................
7,800,000
7,866,469
Samaritan
Health
Services,
Inc.
Obligated
Group,
Revenue,
2016
A,
5%,
10/01/46
.
3,280,000
3,297,595
Samaritan
Health
Services,
Inc.
Obligated
Group,
Revenue,
2016
A,
Pre-Refunded,
5%,
10/01/46
...................................................
220,000
234,517
Samaritan
Health
Services,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
10/01/40
.......................................................
11,025,000
11,201,578
Willamette
University,
Revenue,
2016
B,
Refunding,
5%,
10/01/40
.............
1,950,000
1,979,563
Willamette
University,
Revenue,
2021
A,
Refunding,
4%,
10/01/51
.............
47,505,000
39,932,404
Oregon
State
University
,
Revenue
,
2015
A
,
5
%
,
4/01/45
......................
12,500,000
12,767,216
Port
of
Portland
,
Airport,
Revenue,
25
B,
5%,
7/01/49
....................................
6,300,000
6,439,563
Airport,
Revenue,
Twenty
Eight,
4%,
7/01/47
.............................
5,000,000
4,565,020
Airport,
Revenue,
Twenty
Five
A,
5%,
7/01/49
............................
7,825,000
8,177,518
Airport,
Revenue,
Twenty
Five
B,
5%,
7/01/44
............................
4,830,000
4,974,690
Airport,
Revenue,
Twenty
Four
A,
5%,
7/01/47
............................
4,700,000
4,848,717
Airport,
Revenue,
Twenty
Four
B,
5%,
7/01/42
............................
7,645,000
7,791,419
Airport,
Revenue,
Twenty
Four
B,
5%,
7/01/47
............................
1,750,000
1,774,377
Airport,
Revenue,
Twenty
Seven
A,
5%,
7/01/30
...........................
1,585,000
1,729,820
Airport,
Revenue,
Twenty
Seven
A,
5%,
7/01/31
...........................
3,880,000
4,233,913
Franklin
Tax-Free
Trust
Schedule
of
Investments
Franklin
Oregon
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)
Oregon
(continued)
Port
of
Portland,
(continued)
Airport,
Revenue,
Twenty
Seven
A,
5%,
7/01/32
...........................
$
3,170,000
$
3,455,375
Airport,
Revenue,
Twenty
Seven
A,
5%,
7/01/45
...........................
15,670,000
16,165,747
Salem
Hospital
Facility
Authority
,
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2018,
5%,
5/15/33
.............
545,000
539,385
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2018,
5%,
5/15/38
.............
500,000
485,961
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2018,
5%,
5/15/43
.............
2,250,000
2,134,650
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2018,
5%,
5/15/48
.............
2,700,000
2,502,993
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2018,
5%,
5/15/53
.............
1,000,000
914,336
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
5%,
5/15/23
....
105,000
105,053
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
5%,
5/15/24
....
110,000
110,144
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
5%,
5/15/25
....
130,000
130,044
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
5%,
5/15/26
....
135,000
134,674
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
5%,
5/15/27
....
260,000
258,717
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
5%,
5/15/28
....
310,000
307,459
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
5/15/29
....
515,000
479,707
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
5/15/30
....
385,000
353,594
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
5/15/31
....
400,000
362,512
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
5/15/32
....
370,000
330,808
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
5/15/40
....
1,540,000
1,250,868
Capital
Manor,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
5/15/57
....
2,750,000
1,930,300
Salem
Health
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
5/15/46
.......
17,105,000
17,415,663
Salem-Keizer
School
District
No.
24J
,
GO,
2009
B,
Zero
Cpn.,
6/15/30
.......................................
8,500,000
6,647,857
GO,
2020
C,
4%,
6/15/38
............................................
6,000,000
6,079,067
Santiam
Canyon
School
District
129J
,
GO,
2019,
5%,
6/15/39
.............................................
1,000,000
1,090,192
GO,
2019,
5%,
6/15/44
.............................................
2,330,000
2,522,735
Seaside
School
District
No.
10
,
GO,
2017
B,
5%,
6/15/35
............................................
2,000,000
2,137,871
GO,
2017
B,
5%,
6/15/36
............................................
2,500,000
2,657,929
State
of
Oregon
,
GO,
2007
A,
4.7%,
8/01/42
...........................................
3,050,000
2,955,854
GO,
2017
A,
5%,
5/01/42
............................................
2,500,000
2,615,995
GO,
2017
H,
5%,
8/01/42
............................................
15,000,000
15,742,810
GO,
2019
A,
5%,
5/01/44
............................................
5,000,000
5,366,288
GO,
2019
G,
5%,
8/01/44
............................................
5,370,000
5,777,673
GO,
L,
Refunding,
5%,
8/01/42
........................................
3,270,000
3,431,933
Department
of
Transportation,
Revenue,
Sub.
Lien,
2019
A,
Refunding,
5%,
11/15/37
12,500,000
13,741,779
Department
of
Transportation,
Revenue,
Sub.
Lien,
2019
A,
Refunding,
5%,
11/15/39
23,175,000
25,272,727
Department
of
Transportation,
Revenue,
Sub.
Lien,
2019
A,
Refunding,
5%,
11/15/42
6,825,000
7,376,986
b
State
of
Oregon
Housing
&
Community
Services
Department
,
Union
at
Pacific
Highway
LP
,
Revenue
,
144A,
2022
II-1
,
5.5
%
,
12/01/39
............................
20,000,000
19,954,778
Tillamook
&
Yamhill
Counties
School
District
No.
101
Nestucca
Valley
,
GO,
2018
B,
5%,
6/15/36
............................................
2,850,000
3,118,118
GO,
2018
B,
5%,
6/15/37
............................................
2,520,000
2,735,381
Tri-County
Metropolitan
Transportation
District
of
Oregon
,
Revenue,
2015
A,
Pre-Refunded,
5%,
9/01/40
............................
6,000,000
6,290,434
Revenue,
2018
A,
5%,
10/01/31
.......................................
5,025,000
5,463,479
Revenue,
2018
A,
5%,
10/01/32
.......................................
1,865,000
2,026,183
Revenue,
2018
A,
Pre-Refunded,
5%,
9/01/48
............................
18,505,000
20,211,527
Revenue,
Senior
Lien,
2017
A,
Pre-Refunded,
5%,
9/01/41
...................
18,650,000
19,976,664
Union
County
Hospital
Facility
Authority
,
Grande
Ronde
Hospital,
Inc.
Obligated
Group,
Revenue,
2022,
5%,
7/01/47
......
2,250,000
2,256,936
Grande
Ronde
Hospital,
Inc.
Obligated
Group,
Revenue,
2022,
5%,
7/01/52
......
2,250,000
2,221,190
Franklin
Tax-Free
Trust
Schedule
of
Investments
Franklin
Oregon
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)
Oregon
(continued)
University
of
Oregon
,
Revenue,
2015
A,
5%,
4/01/45
........................................
$
20,000,000
$
20,463,716
Revenue,
2016
A,
5%,
4/01/46
........................................
11,690,000
12,093,932
Revenue,
2020
A,
5%,
4/01/50
........................................
30,000,000
31,725,879
b
Warm
Springs
Reservation
Confederated
Tribe
,
Revenue,
144A,
2019
B,
Refunding,
5%,
11/01/33
.........................
250,000
275,525
Revenue,
144A,
2019
B,
Refunding,
5%,
11/01/34
.........................
300,000
329,612
Revenue,
144A,
2019
B,
Refunding,
5%,
11/01/39
.........................
2,200,000
2,358,273
Washington
&
Clackamas
Counties
School
District
No.
23J
Tigard-Tualatin
,
GO,
2017,
5%,
6/15/36
.............................................
9,400,000
10,013,123
GO,
2017,
5%,
6/15/37
.............................................
6,000,000
6,369,188
Washington
&
Multnomah
Counties
School
District
No.
48J
Beaverton
,
GO,
2017
D,
5%,
6/15/35
............................................
10,000,000
10,639,927
GO,
2017
D,
5%,
6/15/36
............................................
10,000,000
10,578,518
Washington
Clackamas
&
Yamhill
Counties
School
District
No.
88J
,
GO,
2018
A,
Zero
Cpn.,
6/15/38
.......................................
2,350,000
1,195,497
GO,
2018
A,
Zero
Cpn.,
6/15/39
.......................................
3,275,000
1,570,535
Washington
County
School
District
No.
15
Forest
Grove
,
GO,
2012
B,
Zero
Cpn.,
6/15/29
.......................................
2,545,000
2,067,267
GO,
2012
B,
Zero
Cpn.,
6/15/30
.......................................
2,490,000
1,951,621
GO,
2012
B,
Zero
Cpn.,
6/15/31
.......................................
3,140,000
2,370,231
Yachats
Rural
Fire
Protection
District
,
GO
,
2017
,
AGMC
Insured
,
5
%
,
6/15/47
......
1,600,000
1,670,852
861,046,923
South
Carolina
1.2%
South
Carolina
Jobs-Economic
Development
Authority
,
b
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
2,500,000
2,001,523
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
2,500,000
1,995,389
b
Columbia
Portfolio
Obligated
Group,
Revenue,
144A,
2022
A-1,
Zero
Cpn.,
6/01/37
7,650,000
5,015,110
b
South
Carolina
State
Housing
Finance
&
Development
Authority
,
Garden
Oaks
LP
,
Revenue
,
144A,
2021
A
,
4.2
%
,
12/01/39
................................
3,000,000
2,291,696
11,303,718
Texas
0.6%
b
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
3,300,000
2,447,739
Lake
Houston
Redevelopment
Authority
,
City
of
Houston
Reinvestment
Zone
No.
10,
Revenue,
2021,
Refunding,
5%,
9/01/30
250,000
260,293
City
of
Houston
Reinvestment
Zone
No.
10,
Revenue,
2021,
Refunding,
5%,
9/01/31
250,000
261,316
b
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
A-2
,
5
%
,
12/01/52
............
4,200,000
3,072,705
6,042,053
Washington
0.2%
b
Washington
State
Housing
Finance
Commission
,
Madison
at
Rivers
Edge
Apartments
LLC
,
Revenue
,
144A,
2021
A
,
3.65
%
,
1/01/37
............................
2,500,000
2,001,610
Wisconsin
0.8%
b
Public
Finance
Authority
,
Revenue,
144A,
2022,
B-1,
4%,
12/28/44
................................
2,400,000
1,901,650
Gulf
Coast
Portfolio
Obligated
Group,
Revenue,
144A,
2021,
5.25%,
12/01/23
....
6,300,000
6,300,000
8,201,650
U.S.
Territories
3.7%
Puerto
Rico
3.7%
Children's
Trust
Fund
,
Revenue
,
2002
,
5.625
%
,
5/15/43
......................
6,000,000
6,060,322
HTA
TRRB
Custodial
Trust
,
Revenue,
2005
L,
5.25%,
7/01/41
.....................................
400,000
404,394
Revenue,
2007
N,
5.25%,
7/01/36
.....................................
1,100,000
1,109,797
Franklin
Tax-Free
Trust
Schedule
of
Investments
Franklin
Oregon
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
131
s
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
U.S.
Territories
(continued)
Puerto
Rico
(continued)
Puerto
Rico
Electric
Power
Authority
,
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/32
....................
$
1,300,000
$
1,303,373
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/34
....................
1,000,000
1,002,975
c
Revenue,
WW,
5.25%,
7/01/33
........................................
7,040,000
4,945,600
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue,
2022
A,
5%,
7/01/62
........................................
94,046
87,228
Revenue,
2022
B,
Zero
Cpn.,
7/01/32
...................................
61,117
38,198
Revenue,
2022
C,
Zero
Cpn.,
7/01/53
..................................
104,547
58,041
Puerto
Rico
Sales
Tax
Financing
Corp.
,
Sales
Tax,
Revenue,
A-1,
5%,
7/01/58
..................................
19,745,000
18,319,411
Sales
Tax,
Revenue,
A-2,
4.329%,
7/01/40
...............................
3,000,000
2,726,107
36,055,446
Total
U.S.
Territories
....................................................................
36,055,446
Total
Municipal
Bonds
(Cost
$994,982,382)
.....................................
955,581,637
Total
Long
Term
Investments
(Cost
$997,482,382)
...............................
958,037,447
a
a
a
a
a
Short
Term
Investments
0.2%
Municipal
Bonds
0.2%
Oregon
0.2%
d
Oregon
State
Facilities
Authority
,
PeaceHealth
Obligated
Group,
Revenue,
2018
A,
Refunding,
LOC
US
Bank
NA,
Daily
VRDN
and
Put,
2.62%,
8/01/34
.................................
800,000
800,000
PeaceHealth
Obligated
Group,
Revenue,
2018
B,
Refunding,
LOC
TD
Bank
NA,
Daily
VRDN
and
Put,
2.5%,
8/01/34
..................................
600,000
600,000
d
State
of
Oregon
,
GO
,
2022
E
,
Daily
VRDN
and
Put
,
2.5
%
,
6/01/45
..............
500,000
500,000
1,900,000
Total
Municipal
Bonds
(Cost
$1,900,000)
.......................................
1,900,000
Total
Short
Term
Investments
(Cost
$1,900,000
)
.................................
1,900,000
a
Total
Investments
(Cost
$999,382,382)
99.0%
...................................
$959,937,447
Other
Assets,
less
Liabilities
1.0%
.............................................
9,737,404
Net
Assets
100.0%
...........................................................
$969,674,851
See
Abbreviations
on
page
171
.
a
Fair
valued
using
significant
unobservable
inputs.
See
Note
12
regarding
fair
value
measurements.
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,
2023,
the
aggregate
value
of
these
securities
was
$65,207,686,
representing
6.7%
of
net
assets.
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
Highlights
Franklin
Pennsylvania
Tax-Free
Income
Fund
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Annual
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
132
a
Year
Ended
February
28,
Year
Ended
February
28,
2019
b
2023
2022
2021
2020
a
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$9.64
$9.89
$10.11
$9.73
$9.74
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.22
0.20
0.26
0.29
0.16
Net
realized
and
unrealized
gains
(losses)
...........
(1.00)
(0.25)
(0.23)
0.39
(0.01)
Total
from
investment
operations
....................
(0.78)
(0.05)
0.03
0.68
0.15
Less
distributions
from:
Net
investment
income
..........................
(0.22)
(0.20)
(0.25)
(0.30)
(0.16)
Net
asset
value,
end
of
year
.......................
$8.64
$9.64
$9.89
$10.11
$9.73
Total
return
e
...................................
(8.13)%
(0.56)%
0.32%
7.14%
1.59%
Ratios
to
average
net
assets
f
Expenses
g
....................................
0.82%
0.81%
0.81%
0.82%
0.83%
Net
investment
income
...........................
2.48%
2.00%
2.59%
2.98%
3.40%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$150,381
$175,896
$146,124
$105,032
$52,673
Portfolio
turnover
rate
............................
30.73%
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
133
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$9.64
$9.89
$10.11
$9.73
$9.78
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.23
0.22
0.27
0.31
0.34
Net
realized
and
unrealized
gains
(losses)
...........
(1.00)
(0.25)
(0.23)
0.39
(0.04)
Total
from
investment
operations
....................
(0.77)
(0.03)
0.04
0.70
0.30
Less
distributions
from:
Net
investment
income
..........................
(0.23)
(0.22)
(0.26)
(0.32)
(0.35)
Net
asset
value,
end
of
year
.......................
$8.64
$9.64
$9.89
$10.11
$9.73
Total
return
d
...................................
(7.99)%
(0.41)%
0.47%
7.29%
3.17%
Ratios
to
average
net
assets
Expenses
e
....................................
0.67%
0.66%
0.67%
0.67%
0.68%
Net
investment
income
...........................
2.63%
2.16%
2.77%
3.13%
3.55%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$494,179
$644,308
$709,450
$772,506
$784,367
Portfolio
turnover
rate
............................
30.73%
36.04%
28.44%
13.61%
6.40%
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.
134
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$9.77
$10.02
$10.24
$9.86
$9.91
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.18
0.16
0.22
0.26
0.30
Net
realized
and
unrealized
gains
(losses)
...........
(1.01)
(0.25)
(0.23)
0.39
(0.05)
Total
from
investment
operations
....................
(0.83)
(0.09)
(0.01)
0.65
0.25
Less
distributions
from:
Net
investment
income
..........................
(0.18)
(0.16)
(0.21)
(0.27)
(0.30)
Net
asset
value,
end
of
year
.......................
$8.76
$9.77
$10.02
$10.24
$9.86
Total
return
d
...................................
(8.49)%
(0.95)%
(0.08)%
6.64%
2.56%
Ratios
to
average
net
assets
Expenses
e
....................................
1.22%
1.21%
1.21%
1.22%
1.23%
Net
investment
income
...........................
2.03%
1.60%
2.21%
2.58%
3.00%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$41,736
$63,426
$104,823
$146,042
$173,240
Portfolio
turnover
rate
............................
30.73%
36.04%
28.44%
13.61%
6.40%
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
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
135
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$9.66
$9.90
$10.12
$9.75
$9.80
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.25
0.23
0.28
0.32
0.36
Net
realized
and
unrealized
gains
(losses)
...........
(1.02)
(0.24)
(0.22)
0.38
(0.04)
Total
from
investment
operations
....................
(0.77)
(0.01)
0.06
0.70
0.32
Less
distributions
from:
Net
investment
income
..........................
(0.24)
(0.23)
(0.28)
(0.33)
(0.37)
Net
asset
value,
end
of
year
.......................
$8.65
$9.66
$9.90
$10.12
$9.75
Total
return
....................................
(7.95)%
(0.17)%
0.61%
7.32%
3.30%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
0.55%
0.56%
0.55%
0.55%
0.57%
Expenses
net
of
waiver
and
payments
by
affiliates
d
......
0.54%
0.52%
0.53%
0.53%
0.54%
Net
investment
income
...........................
2.84%
2.29%
2.86%
3.27%
3.69%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$8,556
$5,802
$4,300
$2,905
$2,282
Portfolio
turnover
rate
............................
30.73%
36.04%
28.44%
13.61%
6.40%
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
Pennsylvania
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
136
a
Year
Ended
February
28,
2023
2022
2021
2020
a
2019
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$9.66
$9.90
$10.12
$9.75
$9.80
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.24
0.23
0.28
0.32
0.36
Net
realized
and
unrealized
gains
(losses)
...........
(1.01)
(0.24)
(0.23)
0.38
(0.05)
Total
from
investment
operations
....................
(0.77)
(0.01)
0.05
0.70
0.31
Less
distributions
from:
Net
investment
income
..........................
(0.24)
(0.23)
(0.27)
(0.33)
(0.36)
Net
asset
value,
end
of
year
.......................
$8.65
$9.66
$9.90
$10.12
$9.75
Total
return
....................................
(7.99)%
(0.21)%
0.57%
7.28%
3.27%
Ratios
to
average
net
assets
Expenses
d
....................................
0.57%
0.56%
0.56%
0.57%
0.58%
Net
investment
income
...........................
2.71%
2.26%
2.85%
3.23%
3.65%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$71,451
$106,979
$105,603
$98,190
$81,595
Portfolio
turnover
rate
............................
30.73%
36.04%
28.44%
13.61%
6.40%
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
Schedule
of
Investments,
February
28,
2023
Franklin
Pennsylvania
Tax-Free
Income
Fund
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
Corporate
Bonds
0.2%
Software
0.2%
a
Haven
at
Elgin
LLC
,
5.25
%
,
12/31/53
....................................
$
2,000,000
$
1,964,649
Total
Corporate
Bonds
(Cost
$2,000,000)
.......................................
1,964,649
Municipal
Bonds
97.6%
Florida
0.7%
Capital
Trust
Agency,
Inc.
,
Kingdom
Development
West
Palm
Beach
Portfolio
Obligated
Group,
Revenue,
2021
A-1,
3.75%,
12/01/36
.............................................
5,688,000
4,736,241
b
SHI
-
Lake
Osborne
LLC,
Revenue,
144A,
2021
A-1,
3.68%,
1/01/57
...........
1,000,000
674,134
5,410,375
Illinois
0.7%
Metropolitan
Pier
&
Exposition
Authority
,
Revenue,
2022
A,
Refunding,
4%,
12/15/42
..............................
2,750,000
2,369,504
Revenue,
2022
A,
Refunding,
4%,
6/15/52
...............................
2,000,000
1,604,227
State
of
Illinois
,
GO
,
2017
C
,
5
%
,
11/01/29
................................
1,500,000
1,568,742
5,542,473
New
Jersey
0.2%
New
Jersey
Economic
Development
Authority
,
Revenue
,
2021
QQQ
,
4
%
,
6/15/46
...
1,000,000
911,414
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue
,
2020
AA
,
4
%
,
6/15/37
...
1,000,000
983,130
1,894,544
New
York
1.5%
Metropolitan
Transportation
Authority
,
Revenue,
2021
A-1,
4%,
11/15/44
.....................................
6,700,000
5,905,631
Revenue,
2021
A-1,
4%,
11/15/46
.....................................
6,050,000
5,259,523
11,165,154
Pennsylvania
90.3%
Allegheny
County
Airport
Authority
,
Revenue,
2021
A,
5%,
1/01/32
........................................
4,345,000
4,715,569
Revenue,
2021
A,
5%,
1/01/35
........................................
5,755,000
6,174,319
Revenue,
2021
A,
5%,
1/01/51
........................................
8,500,000
8,658,865
Revenue,
2021
B,
5%,
1/01/36
........................................
2,735,000
3,012,928
Allegheny
County
Higher
Education
Building
Authority
,
Chatham
University,
Revenue,
2022,
Refunding,
5.25%,
9/01/33
..............
700,000
719,657
Chatham
University,
Revenue,
2022,
Refunding,
5.25%,
9/01/34
..............
1,090,000
1,110,827
Duquesne
University
of
the
Holy
Spirit,
Revenue,
2021
A,
Refunding,
4%,
3/01/40
.
2,115,000
1,981,284
Duquesne
University
of
the
Holy
Spirit,
Revenue,
2021
A,
Refunding,
4%,
3/01/41
.
3,000,000
2,799,751
Robert
Morris
University,
Revenue,
2017,
5%,
10/15/37
.....................
1,000,000
996,061
Robert
Morris
University,
Revenue,
2017,
5%,
10/15/47
.....................
1,300,000
1,219,906
Allegheny
County
Sanitary
Authority
,
Revenue
,
2018
,
5
%
,
6/01/43
...............
7,000,000
7,323,328
Allentown
Neighborhood
Improvement
Zone
Development
Authority
,
Revenue,
2022,
Refunding,
5%,
5/01/32
.................................
1,560,000
1,642,041
Revenue,
2022,
Refunding,
5%,
5/01/33
.................................
1,800,000
1,891,345
Revenue,
2022,
Refunding,
5%,
5/01/34
.................................
1,550,000
1,619,063
Revenue,
2022,
Refunding,
5%,
5/01/35
.................................
1,400,000
1,446,222
Revenue,
2022,
Refunding,
5%,
5/01/42
.................................
8,875,000
8,746,477
Berks
County
Industrial
Development
Authority
,
Highlands
at
Wyomissing
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
5/15/42
........................................................
1,000,000
925,440
Highlands
at
Wyomissing
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
5/15/47
........................................................
600,000
542,985
Highlands
at
Wyomissing
Obligated
Group,
Revenue,
2017
C,
5%,
5/15/37
......
1,245,000
1,209,164
Highlands
at
Wyomissing
Obligated
Group,
Revenue,
2018,
Refunding,
5%,
5/15/38
1,030,000
990,659
Franklin
Tax-Free
Trust
Schedule
of
Investments
Franklin
Pennsylvania
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
138
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%,
5/15/48
$
1,000,000
$
914,374
Blue
Mountain
School
District
,
GO,
2021
B,
AGMC
Insured,
4%,
8/01/32
................................
1,000,000
1,054,010
GO,
2021
B,
AGMC
Insured,
4%,
8/01/35
................................
1,000,000
1,034,893
Bristol
Township
School
District
,
GO
,
2021
C
,
BAM
Insured
,
3
%
,
6/01/37
..........
1,250,000
1,103,950
Bucks
County
Industrial
Development
Authority
,
Delaware
Valley
University,
Revenue,
2022
B,
Refunding,
5%,
11/01/37
.........
1,000,000
993,721
Delaware
Valley
University,
Revenue,
2022
B,
Refunding,
5%,
11/01/42
.........
1,080,000
1,049,777
Delaware
Valley
University,
Revenue,
2022
B,
Refunding,
5%,
11/01/52
.........
2,500,000
2,344,337
St.
Luke's
Hospital
Obligated
Group,
Revenue,
2019,
4%,
8/15/44
.............
1,500,000
1,353,262
St.
Luke's
Hospital
Obligated
Group,
Revenue,
2021,
3%,
8/15/53
.............
12,000,000
8,102,485
Butler
County
Hospital
Authority
,
Butler
Health
System
Obligated
Group
,
Revenue
,
2015
A
,
Refunding
,
5
%
,
7/01/35
.......................................
1,885,000
1,903,465
Canon
Mcmillan
School
District
,
GO,
2019,
Refunding,
BAM
Insured,
4%,
6/01/44
..........................
6,075,000
5,676,406
GO,
2019,
Refunding,
BAM
Insured,
4%,
6/01/50
..........................
3,000,000
2,740,061
Central
Bradford
Progress
Authority
,
Guthrie
Clinic
(The)
,
Revenue
,
2021
B
,
4
%
,
12/01/51
........................................................
5,000,000
4,457,538
Centre
County
Hospital
Authority
,
Mount
Nittany
Medical
Center
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
11/15/42
.......................................................
1,215,000
1,236,344
Mount
Nittany
Medical
Center
Obligated
Group,
Revenue,
2018
A,
Refunding,
4%,
11/15/47
.......................................................
1,840,000
1,683,678
Chester
County
Industrial
Development
Authority
,
University
Student
Housing
LLC,
Revenue,
2013
A,
5%,
8/01/35
...............
500,000
492,261
University
Student
Housing
LLC,
Revenue,
2013
A,
5%,
8/01/45
...............
1,500,000
1,405,771
City
of
Erie
Higher
Education
Building
Authority
,
Gannon
University,
Revenue,
2021
TT-1,
4%,
5/01/36
......................
400,000
361,901
Gannon
University,
Revenue,
2021
TT-1,
4%,
5/01/41
......................
1,000,000
838,434
Gannon
University,
Revenue,
2021
TT-1,
5%,
5/01/47
......................
2,430,000
2,294,045
City
of
Philadelphia
,
GO,
2019
B,
5%,
2/01/36
............................................
3,300,000
3,543,518
GO,
2019
B,
5%,
2/01/38
............................................
4,055,000
4,298,606
GO,
2019
B,
5%,
2/01/39
............................................
6,050,000
6,398,292
GO,
2021
A,
4%,
5/01/37
............................................
5,000,000
5,018,558
GO,
2021
A,
4%,
5/01/38
............................................
5,000,000
4,983,337
Airport,
Revenue,
2017
B,
Refunding,
5%,
7/01/47
.........................
10,000,000
10,116,683
Airport,
Revenue,
2020
C,
Refunding,
4%,
7/01/45
.........................
5,225,000
4,723,808
Airport,
Revenue,
2021,
Refunding,
5%,
7/01/51
...........................
3,100,000
3,160,980
Water
&
Wastewater,
Revenue,
2015
A,
Pre-Refunded,
5%,
7/01/40
............
5,000,000
5,124,777
Water
&
Wastewater,
Revenue,
2015
A,
Pre-Refunded,
5%,
7/01/45
............
5,000,000
5,124,777
Water
&
Wastewater,
Revenue,
2017
A,
5%,
10/01/47
......................
5,000,000
5,176,013
Water
&
Wastewater,
Revenue,
2019
B,
5%,
11/01/49
......................
5,000,000
5,220,788
Water
&
Wastewater,
Revenue,
2020
A,
Refunding,
5%,
11/01/45
..............
6,300,000
6,661,782
Water
&
Wastewater,
Revenue,
2022
C,
5.5%,
6/01/47
......................
5,000,000
5,506,635
Colonial
School
District
,
GO
,
2021
A
,
3
%
,
2/15/40
...........................
1,650,000
1,414,112
Commonwealth
Financing
Authority
,
Commonwealth
of
Pennsylvania
Department
of
Community
&
Economic
Development
,
Revenue
,
2015
A
,
5
%
,
6/01/34
..........
10,000,000
10,281,046
Commonwealth
of
Pennsylvania
,
GO,
2022,
5%,
10/01/40
.............................................
5,000,000
5,534,910
GO,
First
Series,
2018,
5%,
3/01/28
....................................
5,000,000
5,512,769
Conestoga
Valley
School
District
,
GO,
2021
A,
4%,
2/01/36
............................................
1,100,000
1,130,976
Revenue,
2021
B,
4%,
2/01/36
........................................
1,020,000
1,036,983
Franklin
Tax-Free
Trust
Schedule
of
Investments
Franklin
Pennsylvania
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
139
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
$
1,721,292
County
of
Jefferson
,
GO,
2021,
Refunding,
AGMC
Insured,
3%,
12/15/35
........................
650,000
593,550
GO,
2021,
Refunding,
AGMC
Insured,
3%,
12/15/37
........................
770,000
675,433
GO,
2021,
Refunding,
AGMC
Insured,
3%,
12/15/39
........................
520,000
435,646
County
of
York
,
GO
,
2020
B
,
4
%
,
6/01/38
.................................
860,000
862,204
Dallas
Area
Municipal
Authority
,
Misericordia
University
,
Revenue
,
2014
,
Refunding
,
5
%
,
5/01/37
......................................................
2,500,000
2,442,895
Delaware
County
Authority
,
Elwyn
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
6/01/27
..............
2,475,000
2,438,584
Elwyn
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
6/01/32
..............
1,620,000
1,525,887
Villanova
University,
Revenue,
2015,
4%,
8/01/45
..........................
2,120,000
2,007,251
Delaware
County
Regional
Water
Quality
Control
Authority
,
Revenue
,
2016
,
4
%
,
11/01/36
........................................................
2,005,000
2,019,140
Delaware
County
Vocational
&
Technical
School
Authority
,
Delaware
County
Intermediate
Unit
,
Revenue
,
2013
,
Pre-Refunded
,
BAM
Insured
,
5
%
,
11/01/38
....
1,250,000
1,265,057
DuBois
Hospital
Authority
,
Penn
Highlands
Healthcare
Obligated
Group,
Revenue,
2018,
Refunding,
5%,
7/15/43
........................................................
3,410,000
3,471,145
Penn
Highlands
Healthcare
Obligated
Group,
Revenue,
2020,
4%,
7/15/50
......
3,500,000
2,991,384
Penn
Highlands
Healthcare
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
7/15/41
........................................................
1,000,000
907,844
Penn
Highlands
Healthcare
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
7/15/51
........................................................
4,000,000
3,397,306
East
Hempfield
Township
Industrial
Development
Authority
,
Student
Services,
Inc.,
Revenue,
2013,
Pre-Refunded,
5%,
7/01/45
............
3,250,000
3,265,164
Student
Services,
Inc.,
Revenue,
2015,
Pre-Refunded,
5%,
7/01/47
............
3,750,000
3,904,559
Easton
Area
School
District
,
GO
,
2021
,
4
%
,
4/01/32
.........................
1,450,000
1,534,786
Erie
City
Water
Authority
,
Revenue
,
2016
,
Pre-Refunded
,
5
%
,
12/01/43
...........
6,000,000
6,460,948
Fairview
School
District
,
GO,
2021,
BAM
Insured,
3%,
9/15/37
...................................
1,195,000
1,046,966
GO,
2021,
BAM
Insured,
3%,
9/15/38
...................................
1,000,000
856,240
GO,
2021,
BAM
Insured,
3%,
9/15/39
...................................
1,000,000
840,765
Geisinger
Authority
,
Geisinger
Health
System
Obligated
Group,
Revenue,
2017
A-1,
Refunding,
5%,
2/15/45
........................................................
5,555,000
5,654,876
Geisinger
Health
System
Obligated
Group,
Revenue,
2017
A-2,
Refunding,
5%,
2/15/39
........................................................
13,155,000
13,556,705
General
Authority
of
Southcentral
Pennsylvania
,
WellSpan
Health
Obligated
Group
,
Revenue
,
2014
A
,
Pre-Refunded
,
5
%
,
6/01/44
............................
11,955,000
12,211,552
Governor
Mifflin
School
District
,
GO,
2021,
3%,
4/01/35
.............................................
810,000
755,873
GO,
2021,
3%,
4/01/36
.............................................
625,000
567,956
GO,
2021,
3%,
4/01/37
.............................................
1,000,000
885,786
GO,
2021,
3%,
4/01/38
.............................................
1,000,000
876,151
GO,
2021,
3%,
4/01/39
.............................................
1,015,000
871,456
Huntingdon
County
General
Authority
,
Juniata
College
,
Revenue
,
2021
TT-3
,
Refunding
,
5
%
,
10/01/51
............................................
2,520,000
2,524,981
Lancaster
County
Hospital
Authority
,
University
of
Pennsylvania
Health
System
Obligated
Group
(The)
,
Revenue
,
2016
B
,
Refunding
,
5
%
,
8/15/46
.............
4,165,000
4,251,667
Lancaster
Higher
Education
Authority
,
Elizabethtown
College,
Revenue,
2022
A,
Refunding,
5%,
10/01/46
............
5,000,000
4,888,850
Elizabethtown
College,
Revenue,
2022
A,
Refunding,
5%,
10/01/51
............
5,000,000
4,822,400
Lancaster
Industrial
Development
Authority
,
Landis
Homes
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
7/01/51
........
2,780,000
2,078,502
Landis
Homes
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
7/01/56
........
520,000
377,802
Willow
Valley
Communities
Obligated
Group,
Revenue,
2019,
5%,
12/01/44
......
1,850,000
1,906,588
Franklin
Tax-Free
Trust
Schedule
of
Investments
Franklin
Pennsylvania
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
140
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Pennsylvania
(continued)
Lancaster
Industrial
Development
Authority,
(continued)
Willow
Valley
Communities
Obligated
Group,
Revenue,
2019,
5%,
12/01/49
......
$
2,300,000
$
2,354,984
Lancaster
School
District
,
GO,
2020,
AGMC
Insured,
4%,
6/01/34
.................................
1,000,000
1,038,705
GO,
2020,
AGMC
Insured,
4%,
6/01/35
.................................
1,850,000
1,911,230
Latrobe
Industrial
Development
Authority
,
Seton
Hill
University,
Revenue,
2021,
Refunding,
4%,
3/01/46
................
750,000
598,044
Seton
Hill
University,
Revenue,
2021,
Refunding,
4%,
3/01/51
................
800,000
614,468
St.
Vincent
College
Corp.,
Revenue,
2013,
Pre-Refunded,
5%,
5/01/43
.........
4,120,000
4,130,763
Lehigh
County
Authority
,
Revenue,
2013
A,
5%,
12/01/43
.......................................
2,435,000
2,351,349
Revenue,
2013
A,
Pre-Refunded,
5%,
12/01/43
...........................
2,805,000
2,844,004
Lehigh
County
General
Purpose
Authority
,
Good
Shepherd
Obligated
Group
(The),
Revenue,
2021
A,
Refunding,
4%,
11/01/41
4,345,000
3,918,057
Lehigh
Valley
Academy
Regional
Charter
School,
Revenue,
2022,
4%,
6/01/42
....
14,390,000
12,674,106
Lehigh
Valley
Academy
Regional
Charter
School,
Revenue,
2022,
4%,
6/01/57
....
5,000,000
3,998,435
Lycoming
County
Authority
,
Lycoming
College,
Revenue,
2013
MM-1,
5.25%,
11/01/38
...................
1,400,000
1,418,588
Lycoming
College,
Revenue,
2013
MM-1,
5.25%,
11/01/43
...................
1,495,000
1,515,343
Montgomery
County
Higher
Education
and
Health
Authority
,
Gwynedd
Mercy
University,
Revenue,
2022,
Refunding,
5.25%,
5/01/37
.........
2,665,000
2,703,605
Gwynedd
Mercy
University,
Revenue,
2022,
Refunding,
5%,
5/01/42
...........
3,700,000
3,529,083
Thomas
Jefferson
University
Obligated
Group,
Revenue,
2018,
Refunding,
5%,
9/01/48
........................................................
8,250,000
8,361,817
Thomas
Jefferson
University
Obligated
Group,
Revenue,
2019,
Refunding,
4%,
9/01/44
........................................................
10,000,000
9,185,464
Thomas
Jefferson
University
Obligated
Group,
Revenue,
2022
B,
Refunding,
4%,
5/01/52
........................................................
4,000,000
3,549,617
Thomas
Jefferson
University
Obligated
Group,
Revenue,
2022
B,
Refunding,
5%,
5/01/52
........................................................
5,000,000
5,045,784
Montgomery
County
Industrial
Development
Authority
,
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020
C,
4%,
11/15/43
.......................................................
600,000
494,718
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020
C,
5%,
11/15/45
.......................................................
1,985,000
1,889,141
Meadowood
Corp.
Obligated
Group
(The),
Revenue,
2018
A,
Refunding,
5%,
12/01/38
.......................................................
2,500,000
2,483,656
Public
School
of
Germantown
(The),
Revenue,
2021
A,
Refunding,
4%,
10/01/51
..
2,450,000
1,929,112
Waverly
Heights
Ltd.
Obligated
Group,
Revenue,
2019,
Refunding,
5%,
12/01/49
..
2,000,000
2,025,587
New
Kensington
Municipal
Sanitary
Authority
,
Revenue
,
2021
A
,
AGMC
Insured
,
3
%
,
12/01/38
........................................................
500,000
432,539
Northampton
County
General
Purpose
Authority
,
St.
Luke's
Hospital
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
8/15/46
...
7,500,000
7,531,920
St.
Luke's
Hospital
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
8/15/48
...
2,500,000
2,548,025
Northeastern
Pennsylvania
Hospital
and
Education
Authority
,
King's
College
,
Revenue
,
2019
,
5
%
,
5/01/44
.................................................
1,000,000
984,448
Northeastern
School
District
,
GO,
2021
A,
BAM
Insured,
3%,
3/01/38
.................................
850,000
735,298
GO,
2021
A,
BAM
Insured,
3%,
3/01/41
.................................
775,000
632,512
Northern
Lebanon
School
District
,
GO
,
2021
,
BAM
Insured
,
3
%
,
9/01/36
..........
1,895,000
1,704,412
Pennsylvania
Economic
Development
Financing
Authority
,
City
of
Philadelphia
Water
&
Wastewater,
Revenue,
2020,
Refunding,
4%,
1/01/29
.
500,000
500,482
City
of
Philadelphia
Water
&
Wastewater,
Revenue,
2020,
Refunding,
4%,
1/01/32
.
1,300,000
1,292,001
Commonwealth
of
Pennsylvania
Department
of
Transportation,
Revenue,
2022,
5.25%,
6/30/53
..................................................
8,500,000
8,663,625
UPMC
Obligated
Group,
Revenue,
2014
A,
5%,
2/01/45
.....................
5,000,000
5,044,064
UPMC
Obligated
Group,
Revenue,
2017
A,
Refunding,
4%,
11/15/42
...........
5,000,000
4,732,387
Franklin
Tax-Free
Trust
Schedule
of
Investments
Franklin
Pennsylvania
Tax-Free
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
141
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,
2020
A,
4%,
4/15/45
.....................
$
8,835,000
$
8,175,684
UPMC
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
10/15/39
...........
1,325,000
1,272,950
UPMC
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
10/15/40
...........
1,200,000
1,146,449
UPMC
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
10/15/41
...........
1,300,000
1,236,350
Pennsylvania
Higher
Educational
Facilities
Authority
,
Bryn
Mawr
College,
Revenue,
2014,
Refunding,
5%,
12/01/44
................
6,365,000
6,455,238
St.
Joseph's
University,
Revenue,
2012,
5%,
11/01/42
......................
5,000,000
5,000,854
Thomas
Jefferson
University
Obligated
Group,
Revenue,
2015
A,
Refunding,
5.25%,
9/01/50
........................................................
7,465,000
7,545,720
Trustees
of
the
University
of
Pennsylvania
(The),
Revenue,
2017
A,
5%,
8/15/36
..
2,750,000
2,941,370
Trustees
of
the
University
of
Pennsylvania
(The),
Revenue,
2017
A,
5%,
8/15/46
..
14,000,000
14,708,632
Trustees
of
the
University
of
Pennsylvania
(The),
Revenue,
2018
A,
5%,
2/15/48
..
5,000,000
5,259,890
University
of
Pennsylvania
Health
System
Obligated
Group
(The),
Revenue,
2015,
Refunding,
5%,
8/15/40
............................................
6,475,000
6,628,466
University
of
Pennsylvania
Health
System
Obligated
Group
(The),
Revenue,
2017
A,
5%,
8/15/42
....................................................
9,000,000
9,308,322
Widener
University,
Revenue,
2021
A,
Refunding,
4%,
7/15/51
................
11,030,000
9,090,360
Pennsylvania
Housing
Finance
Agency
,
Revenue,
2019-129,
3.4%,
10/01/49
...................................
6,000,000
4,654,251
Revenue,
2020-132
A,
2.55%,
10/01/41
.................................
11,280,000
8,345,633
Pennsylvania
State
University
(The)
,
Revenue,
2015
A,
Refunding,
5%,
9/01/40
...............................
10,490,000
10,808,814
Revenue,
2016
A,
Refunding,
5%,
9/01/41
...............................
10,000,000
10,380,055
Revenue,
2018,
5%,
9/01/48
.........................................
5,955,000
6,292,238
Pennsylvania
Turnpike
Commission
,
Revenue,
2013
C,
5%,
12/01/43
.......................................
2,405,000
2,423,557
Revenue,
2013
C,
Pre-Refunded,
5%,
12/01/43
...........................
7,595,000
7,689,336
Revenue,
2021
A,
Refunding,
4%,
12/01/39
..............................
2,655,000
2,644,039
Revenue,
2021
B,
4%,
12/01/37
.......................................
1,500,000
1,490,727
Revenue,
2021
B,
4%,
12/01/46
.......................................
10,950,000
10,124,126
Philadelphia
Authority
for
Industrial
Development
,
Beech
International
LLC,
Revenue,
2010
A,
5.625%,
6/15/42
.................
4,000,000
3,772,898
Children's
Hospital
of
Philadelphia
Obligated
Group,
Revenue,
2014
A,
Pre-
Refunded,
5%,
7/01/42
............................................
5,000,000
5,114,906
MaST
Community
Charter
School
II,
Revenue,
2020
A,
5%,
8/01/30
............
200,000
206,595
MaST
Community
Charter
School
II,
Revenue,
2020
A,
5%,
8/01/40
............
300,000
301,179
MaST
Community
Charter
School
II,
Revenue,
2020
A,
5%,
8/01/50
............
2,515,000
2,482,901
St.
Joseph's
University,
Revenue,
2022,
5.5%,
11/01/60
.....................
8,410,000
9,002,191
Temple
University-of
The
Commonwealth
System
of
Higher
Education,
Revenue,
First
Series,
2015,
Refunding,
5%,
4/01/40
.............................
5,000,000
5,057,021
Thomas
Jefferson
University
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
9/01/42
........................................................
3,500,000
3,559,666
Thomas
Jefferson
University
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
9/01/47
........................................................
2,400,000
2,427,927
Philadelphia
Gas
Works
Co.
,
Revenue,
14th,
Refunding,
5%,
10/01/32
................................
1,000,000
1,044,890
Revenue,
15th,
Refunding,
5%,
8/01/42
.................................
5,000,000
5,115,167
Revenue,
15th,
Refunding,
5%,
8/01/47
.................................
6,000,000
6,145,814
Pittsburgh
Water
&
Sewer
Authority
,
Revenue,
First
Lien,
2022
A,
5.25%,
9/01/39
.............................
1,490,000
1,624,440
Revenue,
First
Lien,
2022
A,
5.25%,
9/01/40
.............................
1,365,000
1,471,270
Revenue,
First
Lien,
2022
A,
5.25%,
9/01/41
.............................
1,650,000
1,767,546
Revenue,
First
Lien,
2022
A,
5.25%,
9/01/42
.............................
1,685,000
1,799,398
Revenue,
First
Lien,
2022
A,
5%,
9/01/52
................................
2,640,000
2,758,959
Franklin
Tax-Free
Trust
Schedule
of
Investments
Franklin
Pennsylvania
Tax-Free
Income
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
142
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Pennsylvania
(continued)
Pocono
Mountains
Industrial
Park
Authority
,
St.
Luke's
Hospital
Obligated
Group
,
Revenue
,
2015
A
,
5
%
,
8/15/40
........................................
$
5,000,000
$
5,047,486
Radnor
Township
School
District
,
GO,
2021,
3%,
8/15/35
.............................................
1,400,000
1,300,940
GO,
2021,
4%,
8/15/36
.............................................
1,600,000
1,646,315
GO,
2021,
4%,
8/15/37
.............................................
3,445,000
3,530,146
GO,
2021,
4%,
8/15/38
.............................................
1,430,000
1,457,649
School
District
of
Philadelphia
(The)
,
GO
,
2021
A
,
4
%
,
9/01/37
.................
4,000,000
3,981,461
Scranton
School
District
,
GO,
2020,
4%,
12/01/40
.............................................
1,535,000
1,430,540
GO,
2020,
4%,
12/01/42
.............................................
2,835,000
2,591,755
GO,
2020,
4%,
12/01/45
.............................................
3,670,000
3,246,139
Scranton-Lackawanna
Health
and
Welfare
Authority
,
University
of
Scranton
,
Revenue
,
2016
,
Refunding
,
5
%
,
11/01/37
.......................................
4,000,000
4,115,098
Southeastern
Pennsylvania
Transportation
Authority
,
Revenue
,
2022
,
5.25
%
,
6/01/52
5,000,000
5,513,795
State
College
Area
School
District
,
GO,
2015,
5%,
3/15/40
.............................................
16,400,000
16,757,641
GO,
2018,
5%,
5/15/37
.............................................
1,075,000
1,173,904
GO,
2018,
5%,
5/15/44
.............................................
3,500,000
3,756,061
State
Public
School
Building
Authority
,
School
District
of
Philadelphia
(The),
Revenue,
2016
A,
Refunding,
AGMC
Insured,
5%,
6/01/32
....................................................
7,095,000
7,418,679
School
District
of
Philadelphia
(The),
Revenue,
2016
A,
Refunding,
AGMC
Insured,
5%,
6/01/33
....................................................
3,000,000
3,130,452
Swarthmore
Borough
Authority
,
Swarthmore
College
,
Revenue
,
2013
,
5
%
,
9/15/43
..
1,000,000
1,005,795
Township
of
Northampton
,
GO
,
2021
,
4
%
,
5/15/39
...........................
1,495,000
1,481,856
Township
of
Upper
St.
Clair
,
GO,
2021,
4%,
5/15/37
.............................................
535,000
538,717
GO,
2021,
4%,
5/15/39
.............................................
1,000,000
991,268
Upper
Merion
Area
School
District
,
GO,
2021
A,
3%,
1/15/39
............................................
1,000,000
875,560
GO,
2021
A,
3%,
1/15/40
............................................
1,500,000
1,290,122
GO,
2021
A,
3%,
1/15/41
............................................
1,275,000
1,080,060
Westmoreland
County
Industrial
Development
Authority
,
Excela
Health
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
7/01/29
......
725,000
758,377
Excela
Health
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
7/01/30
......
1,270,000
1,337,435
Excela
Health
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
7/01/37
......
2,400,000
2,190,938
Wilkes-Barre
Finance
Authority
,
Wilkes
University
,
Revenue
,
2021
,
Refunding
,
4
%
,
3/01/42
.........................................................
2,500,000
2,077,229
691,999,765
South
Carolina
0.5%
South
Carolina
Jobs-Economic
Development
Authority
,
b
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
2,000,000
1,601,219
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
2,000,000
1,596,311
b
South
Carolina
State
Housing
Finance
&
Development
Authority
,
Garden
Oaks
LP
,
Revenue
,
144A,
2021
A
,
4.2
%
,
12/01/39
................................
1,000,000
763,899
3,961,429
Texas
0.6%
b
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
2,600,000
1,928,522
b
Pecan
Public
Facility
Corp.
,
Revenue
,
144A,
2022
A-2
,
5
%
,
12/01/52
............
3,300,000
2,414,268
4,342,790
Franklin
Tax-Free
Trust
Schedule
of
Investments
Franklin
Pennsylvania
Tax-Free
Income
Fund
(continued)
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
(continued)
Washington
0.2%
b
Washington
State
Housing
Finance
Commission
,
Madison
at
Rivers
Edge
Apartments
LLC
,
Revenue
,
144A,
2021
A
,
3.65
%
,
1/01/37
............................
$
2,000,000
$
1,601,288
Wisconsin
0.9%
b
Public
Finance
Authority
,
Revenue,
144A,
2022,
B-1,
4%,
12/28/44
................................
1,900,000
1,505,473
Gulf
Coast
Portfolio
Obligated
Group,
Revenue,
144A,
2021,
5.25%,
12/01/23
....
5,100,000
5,100,000
6,605,473
U.S.
Territories
2.0%
Puerto
Rico
2.0%
HTA
HRRB
Custodial
Trust
,
Revenue
,
2007
CC
,
5.5
%
,
7/01/28
.................
755,000
779,516
HTA
TRRB
Custodial
Trust
,
Revenue,
2005
L,
5.25%,
7/01/41
.....................................
1,290,000
1,304,172
Revenue,
2007
N,
5.5%,
7/01/29
......................................
2,500,000
2,585,916
Revenue,
2007
N,
5.25%,
7/01/36
.....................................
950,000
958,461
Puerto
Rico
Electric
Power
Authority
,
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/32
....................
1,100,000
1,102,854
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/34
....................
1,000,000
1,002,975
c
Revenue,
XX,
5.25%,
7/01/40
........................................
5,175,000
3,635,438
Puerto
Rico
Sales
Tax
Financing
Corp.
,
Sales
Tax
,
Revenue
,
A-1
,
5
%
,
7/01/58
.....
4,000,000
3,711,200
15,080,532
Total
U.S.
Territories
....................................................................
15,080,532
Total
Municipal
Bonds
(Cost
$811,287,997)
.....................................
747,603,823
Total
Long
Term
Investments
(Cost
$813,287,997)
...............................
749,568,472
a
a
a
a
a
Short
Term
Investments
0.7%
Municipal
Bonds
0.7%
Pennsylvania
0.7%
d
Allegheny
County
Higher
Education
Building
Authority
,
Carnegie
Mellon
University
,
Revenue
,
2008
A
,
Refunding
,
SPA
Bank
of
New
York
Mellon
(The)
,
Daily
VRDN
and
Put
,
2.65
%
,
12/01/37
...............................................
5,100,000
5,100,000
Total
Municipal
Bonds
(Cost
$5,100,000)
.......................................
5,100,000
Total
Short
Term
Investments
(Cost
$5,100,000
)
.................................
5,100,000
a
Total
Investments
(Cost
$818,387,997)
98.5%
...................................
$754,668,472
Other
Assets,
less
Liabilities
1.5%
.............................................
11,635,108
Net
Assets
100.0%
...........................................................
$766,303,580
See
Abbreviations
on
page
171
.
a
Fair
valued
using
significant
unobservable
inputs.
See
Note
12
regarding
fair
value
measurements.
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,
2023,
the
aggregate
value
of
these
securities
was
$15,588,803,
representing
2.0%
of
net
assets.
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,
2023
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
144
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
................
$811,338,293
$571,417,946
$156,012,458
$778,099,601
Value
-
Unaffiliated
issuers
...............
$769,184,670
$535,294,335
$142,506,389
$729,844,714
Cash
.................................
1,942,631
88,738
28,930
52,190
Receivables:
Capital
shares
sold
.....................
146,630
206,475
21,500
28,778
Interest
..............................
6,981,275
7,014,887
1,352,797
10,152,042
Total
assets
.......................
778,255,206
542,604,435
143,909,616
740,077,724
Liabilities:
Payables:
Capital
shares
redeemed
................
1,108,398
1,342,353
128,969
801,542
Management
fees
......................
316,261
227,981
17,765
303,313
Distribution
fees
.......................
88,751
57,375
15,168
78,034
Transfer
agent
fees
.....................
134,493
107,872
31,870
122,532
Professional
fees
......................
38,284
37,355
35,363
38,160
Trustees'
fees
and
expenses
..............
2,453
2,652
2,356
2,709
Distributions
to
shareholders
..............
201,559
61,521
52,709
177,245
Accrued
expenses
and
other
liabilities
........
38,444
27,168
17,318
38,072
Total
liabilities
......................
1,928,643
1,864,277
301,518
1,561,607
Net
assets,
at
value
..............
$776,326,563
$540,740,158
$143,608,098
$738,516,117
Net
assets
consist
of:
Paid-in
capital
..........................
$896,676,900
$633,127,154
$193,461,195
$861,291,111
Total
distributable
earnings
(losses)
..........
(120,350,337)
(92,386,996)
(49,853,097)
(122,774,994)
Net
assets,
at
value
..............
$776,326,563
$540,740,158
$143,608,098
$738,516,117
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
February
28,
2023
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
145
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
....................
$212,661,704
$117,510,793
$27,697,796
$120,384,246
Shares
outstanding
.....................
22,141,838
11,450,016
3,126,393
11,685,938
Net
asset
value
per
share
a
...............
$9.60
$10.26
$8.86
$10.30
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%,
96.25%,
96.25%
and
96.25%,
respectively)
...................
$9.97
$10.66
$9.21
$10.70
Class
A1:
Net
assets,
at
value
....................
$396,929,471
$287,012,999
$93,653,281
$497,643,495
Shares
outstanding
.....................
41,400,459
27,980,200
10,583,095
48,369,179
Net
asset
value
per
share
a
...............
$9.59
$10.26
$8.85
$10.29
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%,
96.25%,
96.25%
and
96.25%,
respectively)
...................
$9.96
$10.66
$9.19
$10.69
Class
C:
Net
assets,
at
value
....................
$32,465,847
$23,345,988
$4,828,121
$30,730,116
Shares
outstanding
.....................
3,328,141
2,247,848
541,158
2,938,345
Net
asset
value
and
maximum
offering
price
per
share
a
...............................
$9.75
$10.39
$8.92
$10.46
Class
R6:
Net
assets,
at
value
....................
$19,946,049
$15,147,051
$2,951,556
$9,690,323
Shares
outstanding
.....................
2,073,751
1,475,514
333,467
938,044
Net
asset
value
and
maximum
offering
price
per
share
...............................
$9.62
$10.27
$8.85
$10.33
Advisor
Class:
Net
assets,
at
value
....................
$114,323,492
$97,723,327
$14,477,344
$80,067,937
Shares
outstanding
.....................
11,888,422
9,526,472
1,636,969
7,756,749
Net
asset
value
and
maximum
offering
price
per
share
...............................
$9.62
$10.26
$8.84
$10.32
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,
2023
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
146
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
................
$857,908,260
$1,244,220,769
$999,382,382
$818,387,997
Value
-
Unaffiliated
issuers
...............
$806,837,346
$1,185,295,139
$959,937,447
$754,668,472
Cash
.................................
73,446
6,416,218
276,281
3,250,590
Receivables:
Investment
securities
sold
................
—
3,049,770
—
657,070
Capital
shares
sold
.....................
94,482
354,249
616,748
118,133
Interest
..............................
6,326,139
12,243,970
11,198,182
9,020,493
Total
assets
.......................
813,331,413
1,207,359,346
972,028,658
767,714,758
Liabilities:
Payables:
Investment
securities
purchased
...........
—
2,678,353
—
—
Capital
shares
redeemed
................
1,263,160
2,660,603
1,473,593
580,183
Management
fees
......................
330,762
479,623
391,410
314,054
Distribution
fees
.......................
90,009
141,630
106,666
89,280
Transfer
agent
fees
.....................
202,192
229,709
157,686
135,216
Trustees'
fees
and
expenses
..............
2,796
3,053
3,019
2,878
Distributions
to
shareholders
..............
79,339
183,639
130,609
185,053
Accrued
expenses
and
other
liabilities
........
82,084
164,069
90,824
104,514
Total
liabilities
......................
2,050,342
6,540,679
2,353,807
1,411,178
Net
assets,
at
value
..............
$811,281,071
$1,200,818,667
$969,674,851
$766,303,580
Net
assets
consist
of:
Paid-in
capital
..........................
$897,489,285
$1,343,588,134
$1,120,889,870
$938,982,313
Total
distributable
earnings
(losses)
..........
(86,208,214)
(142,769,467)
(151,215,019)
(172,678,733)
Net
assets,
at
value
..............
$811,281,071
$1,200,818,667
$969,674,851
$766,303,580
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Assets
and
Liabilities
(continued)
February
28,
2023
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
147
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
....................
$173,007,701
$269,363,913
$208,460,170
$150,381,365
Shares
outstanding
.....................
15,692,276
23,857,009
20,148,210
17,395,354
Net
asset
value
per
share
a
...............
$11.03
$11.29
$10.35
$8.64
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%,
96.25%,
96.25%
and
96.25%,
respectively)
...................
$11.46
$11.73
$10.75
$8.98
Class
A1:
Net
assets,
at
value
....................
$376,658,793
$628,747,291
$562,619,564
$494,179,200
Shares
outstanding
.....................
34,169,470
55,722,276
54,426,956
57,182,956
Net
asset
value
per
share
a
...............
$11.02
$11.28
$10.34
$8.64
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%,
96.25%,
96.25%
and
96.25%,
respectively)
...................
$11.45
$11.72
$10.74
$8.98
Class
C:
Net
assets,
at
value
....................
$52,612,519
$78,485,946
$43,030,103
$41,736,364
Shares
outstanding
.....................
4,718,439
6,859,838
4,096,671
4,765,945
Net
asset
value
and
maximum
offering
price
per
share
a
...............................
$11.15
$11.44
$10.50
$8.76
Class
R6:
Net
assets,
at
value
....................
$11,973,148
$14,734,055
$21,343,501
$8,555,981
Shares
outstanding
.....................
1,084,330
1,304,033
2,063,127
988,750
Net
asset
value
and
maximum
offering
price
per
share
...............................
$11.04
$11.30
$10.35
$8.65
Advisor
Class:
Net
assets,
at
value
....................
$197,028,910
$209,487,462
$134,221,513
$71,450,670
Shares
outstanding
.....................
17,852,861
18,544,366
12,965,686
8,255,967
Net
asset
value
and
maximum
offering
price
per
share
...............................
$11.04
$11.30
$10.35
$8.65
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,
2023
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
148
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
.....................
$30,091,413
$20,737,739
$5,239,695
$28,084,670
Expenses:
Management
fees
(Note
3
a
)
................
3,959,003
2,905,717
898,487
3,792,491
Distribution
fees:
(Note
3c
)
    Class
A
.............................
496,517
305,726
75,330
302,660
    Class
A1
............................
441,005
322,269
102,741
542,072
    Class
C
.............................
252,482
182,530
37,771
231,982
Transfer
agent
fees:
(Note
3e
)
    Class
A
.............................
127,808
89,169
23,608
85,451
    Class
A1
............................
286,751
236,018
80,765
383,939
    Class
C
.............................
25,336
20,632
4,616
25,340
    Class
R6
............................
8,367
6,787
817
3,742
    Advisor
Class
.........................
87,619
78,551
12,452
60,903
Custodian
fees
(Note
4
)
...................
4,407
3,098
781
4,015
Registration
and
filing
fees
.................
43,915
26,671
19,610
51,757
Professional
fees
........................
78,908
57,403
48,036
88,521
Trustees'
fees
and
expenses
...............
11,305
9,537
2,997
11,787
Other
.................................
155,305
133,654
41,476
115,249
Total
expenses
......................
5,978,728
4,377,762
1,349,487
5,699,909
Expense
reductions
(Note
4
)
............
(3,409)
(1,432)
(589)
(4,878)
Expenses
waived/paid
by
affiliates
(Not
e
3e
and
3f)
...........................
(1,950)
(839)
(98,800)
(301)
Net
expenses
......................
5,973,369
4,375,491
1,250,098
5,694,730
Net
investment
income
.............
24,118,044
16,362,248
3,989,597
22,389,940
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
...................
(14,773,739)
(6,656,220)
(1,876,056)
(13,370,909)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
...................
(78,645,105)
(63,477,659)
(16,224,151)
(76,114,659)
Net
realized
and
unrealized
gain
(loss)
.........
(93,418,844)
(70,133,879)
(18,100,207)
(89,485,568)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
...............................
$(69,300,800)
$(53,771,631)
$(14,110,610)
$(67,095,628)
Franklin
Tax-Free
Trust
Financial
Statements
Statements
of
Operations
(continued)
for
the
year
ended
February
28,
2023
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
149
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
.....................
$29,319,939
$46,245,483
$35,773,154
$27,870,790
Expenses:
Management
fees
(Note
3
a
)
................
4,198,792
6,184,062
4,979,293
4,008,840
Distribution
fees:
(Note
3c
)
    Class
A
.............................
430,875
680,773
534,428
395,834
    Class
A1
............................
425,044
710,494
626,611
545,471
    Class
C
.............................
414,475
629,692
351,115
326,569
Transfer
agent
fees:
(Note
3e
)
    Class
A
.............................
149,097
198,576
134,408
111,451
    Class
A1
............................
369,633
519,629
394,922
383,965
    Class
C
.............................
55,597
70,955
34,090
35,392
    Class
R6
............................
5,624
8,342
8,212
2,295
    Advisor
Class
.........................
184,199
176,503
92,958
60,078
Custodian
fees
(Note
4
)
...................
4,780
6,782
5,394
4,113
Registration
and
filing
fees
.................
46,199
50,789
21,575
28,430
Professional
fees
........................
72,146
64,681
71,483
77,832
Trustees'
fees
and
expenses
...............
13,008
18,424
14,355
11,598
Other
.................................
122,797
207,920
158,534
119,588
Total
expenses
......................
6,492,266
9,527,622
7,427,378
6,111,456
Expense
reductions
(Note
4
)
............
(5,177)
(5,038)
(3,457)
(5,765)
Expenses
waived/paid
by
affiliates
(Not
e
3e
and
3f)
...........................
(1,590)
(2,703)
(1,078)
(8)
Net
expenses
......................
6,485,499
9,519,881
7,422,843
6,105,683
Net
investment
income
.............
22,834,440
36,725,602
28,350,311
21,765,107
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
...................
(23,294,235)
(47,400,274)
(32,286,476)
(24,814,596)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
...................
(77,108,577)
(109,653,839)
(86,888,363)
(76,057,153)
Net
realized
and
unrealized
gain
(loss)
.........
(100,402,812)
(157,054,113)
(119,174,839)
(100,871,749)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
...............................
$(77,568,372)
$(120,328,511)
$(90,824,528)
$(79,106,642)
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.
150
Franklin
Arizona
Tax-Free
Income
Fund
Franklin
Colorado
Tax-Free
Income
Fund
Year
Ended
February
28,
2023
Year
Ended
February
28,
2022
Year
Ended
February
28,
2023
Year
Ended
February
28,
2022
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$24,118,044
$24,415,247
$16,362,248
$16,685,026
Net
realized
gain
(loss)
............
(14,773,739)
(623,740)
(6,656,220)
609,347
Net
change
in
unrealized
appreciation
(depreciation)
.................
(78,645,105)
(26,359,653)
(63,477,659)
(19,206,183)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
(69,300,800)
(2,568,146)
(53,771,631)
(1,911,810)
Distributions
to
shareholders:
Class
A
........................
(5,477,572)
(4,582,316)
(3,151,192)
(2,822,150)
Class
A1
.......................
(12,795,799)
(13,539,073)
(8,775,734)
(9,224,150)
Class
C
........................
(891,517)
(1,078,162)
(598,454)
(730,216)
Class
R6
.......................
(646,146)
(706,832)
(523,311)
(527,705)
Advisor
Class
...................
(4,004,463)
(4,446,484)
(3,027,642)
(3,326,783)
Total
distributions
to
shareholders
.....
(23,815,497)
(24,352,867)
(16,076,333)
(16,631,004)
Capital
share
transactions:
(Note
2
)
Class
A
........................
22,738,565
42,805,902
(11,380,098)
27,372,708
Class
A1
.......................
(79,938,374)
(42,867,742)
(62,616,015)
(26,007,260)
Class
C
........................
(11,887,394)
(17,781,992)
(9,344,142)
(14,240,207)
Class
R6
.......................
(5,537,191)
7,524,370
(6,193,718)
4,987,766
Advisor
Class
...................
(47,630,839)
8,881,011
(27,249,327)
8,831,540
Total
capital
share
transactions
.......
(122,255,233)
(1,438,451)
(116,783,300)
944,547
Net
increase
(decrease)
in
net
assets
.....................
(215,371,530)
(28,359,464)
(186,631,264)
(17,598,267)
Net
assets:
Beginning
of
year
..................
991,698,093
1,020,057,557
727,371,422
744,969,689
End
of
year
......................
$776,326,563
$991,698,093
$540,740,158
$727,371,422
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
151
Franklin
Connecticut
Tax-Free
Income
Fund
Franklin
Michigan
Tax-Free
Income
Fund
Year
Ended
February
28,
2023
Year
Ended
February
28,
2022
Year
Ended
February
28,
2023
Year
Ended
February
28,
2022
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$3,989,597
$4,119,392
$22,389,940
$22,085,741
Net
realized
gain
(loss)
............
(1,876,056)
562,813
(13,370,909)
5,303,487
Net
change
in
unrealized
appreciation
(depreciation)
.................
(16,224,151)
(6,544,374)
(76,114,659)
(38,530,605)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
(14,110,610)
(1,862,169)
(67,095,628)
(11,141,377)
Distributions
to
shareholders:
Class
A
........................
(725,655)
(660,235)
(3,242,606)
(2,707,857)
Class
A1
.......................
(2,628,233)
(2,777,742)
(15,321,103)
(15,578,131)
Class
C
........................
(114,944)
(162,619)
(793,077)
(910,264)
Class
R6
.......................
(55,038)
(41,198)
(295,506)
(236,286)
Advisor
Class
...................
(415,945)
(470,324)
(2,523,867)
(2,654,715)
Total
distributions
to
shareholders
.....
(3,939,815)
(4,112,118)
(22,176,159)
(22,087,253)
Capital
share
transactions:
(Note
2
)
Class
A
........................
(2,990,614)
6,803,733
(761,378)
31,989,312
Class
A1
.......................
(14,118,596)
(12,470,274)
(70,249,858)
(36,946,978)
Class
C
........................
(1,756,700)
(5,841,644)
(8,286,111)
(16,306,588)
Class
R6
.......................
1,346,972
493,143
(458,498)
5,469,674
Advisor
Class
...................
(3,979,347)
77,618
(17,642,348)
9,627,615
Total
capital
share
transactions
.......
(21,498,285)
(10,937,424)
(97,398,193)
(6,166,965)
Net
increase
(decrease)
in
net
assets
.....................
(39,548,710)
(16,911,711)
(186,669,980)
(39,395,595)
Net
assets:
Beginning
of
year
..................
183,156,808
200,068,519
925,186,097
964,581,692
End
of
year
......................
$143,608,098
$183,156,808
$738,516,117
$925,186,097
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.
152
Franklin
Minnesota
Tax-Free
Income
Fund
Franklin
Ohio
Tax-Free
Income
Fund
Year
Ended
February
28,
2023
Year
Ended
February
28,
2022
Year
Ended
February
28,
2023
Year
Ended
February
28,
2022
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$22,834,440
$21,509,580
$36,725,602
$34,511,407
Net
realized
gain
(loss)
............
(23,294,235)
(2,597,651)
(47,400,274)
(5,657,860)
Net
change
in
unrealized
appreciation
(depreciation)
.................
(77,108,577)
(34,947,318)
(109,653,839)
(41,375,401)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
(77,568,372)
(16,035,389)
(120,328,511)
(12,521,854)
Distributions
to
shareholders:
Class
A
........................
(4,194,889)
(3,335,908)
(7,114,808)
(5,811,468)
Class
A1
.......................
(10,944,425)
(11,079,476)
(19,593,108)
(18,860,025)
Class
C
........................
(1,266,484)
(1,326,276)
(2,089,195)
(2,256,500)
Class
R6
.......................
(366,207)
(332,102)
(474,379)
(463,674)
Advisor
Class
...................
(5,666,332)
(5,334,715)
(6,877,427)
(6,715,827)
Total
distributions
to
shareholders
.....
(22,438,337)
(21,408,477)
(36,148,917)
(34,107,494)
Capital
share
transactions:
(Note
2
)
Class
A
........................
(1,591,623)
39,541,298
(15,102,253)
64,015,784
Class
A1
.......................
(82,148,635)
(58,866,762)
(139,269,124)
(54,936,135)
Class
C
........................
(21,017,857)
(25,716,187)
(35,092,654)
(40,696,186)
Class
R6
.......................
(2,992,124)
3,280,591
(4,714,873)
5,151,900
Advisor
Class
...................
(44,467,536)
31,551,412
(60,887,439)
12,096,471
Total
capital
share
transactions
.......
(152,217,775)
(10,209,648)
(255,066,343)
(14,368,166)
Net
increase
(decrease)
in
net
assets
.....................
(252,224,484)
(47,653,514)
(411,543,771)
(60,997,514)
Net
assets:
Beginning
of
year
..................
1,063,505,555
1,111,159,069
1,612,362,438
1,673,359,952
End
of
year
......................
$811,281,071
$1,063,505,555
$1,200,818,667
$1,612,362,438
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
153
Franklin
Oregon
Tax-Free
Income
Fund
Franklin
Pennsylvania
Tax-Free
Income
Fund
Year
Ended
February
28,
2023
Year
Ended
February
28,
2022
Year
Ended
February
28,
2023
Year
Ended
February
28,
2022
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$28,350,311
$26,851,073
$21,765,107
$22,342,222
Net
realized
gain
(loss)
............
(32,286,476)
(1,568,161)
(24,814,596)
7,804,857
Net
change
in
unrealized
appreciation
(depreciation)
.................
(86,888,363)
(28,772,949)
(76,057,153)
(33,197,486)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
(90,824,528)
(3,490,037)
(79,106,642)
(3,050,407)
Distributions
to
shareholders:
Class
A
........................
(5,411,247)
(4,723,321)
(3,883,253)
(3,388,452)
Class
A1
.......................
(16,785,975)
(16,341,609)
(14,157,572)
(14,903,892)
Class
C
........................
(1,116,100)
(1,296,037)
(1,002,470)
(1,344,483)
Class
R6
.......................
(624,514)
(566,038)
(170,041)
(117,193)
Advisor
Class
...................
(4,085,135)
(3,891,758)
(2,284,606)
(2,448,830)
Total
distributions
to
shareholders
.....
(28,022,971)
(26,818,763)
(21,497,942)
(22,202,850)
Capital
share
transactions:
(Note
2
)
Class
A
........................
(18,665,930)
39,620,156
(7,348,797)
35,069,329
Class
A1
.......................
(100,347,561)
(56,963,758)
(85,237,509)
(49,109,140)
Class
C
........................
(22,723,065)
(24,448,091)
(15,405,013)
(40,451,026)
Class
R6
.......................
(2,431,842)
4,010,834
3,197,395
1,670,118
Advisor
Class
...................
(29,716,365)
14,473,672
(24,709,921)
4,186,212
Total
capital
share
transactions
.......
(173,884,763)
(23,307,187)
(129,503,845)
(48,634,507)
Net
increase
(decrease)
in
net
assets
.....................
(292,732,262)
(53,615,987)
(230,108,429)
(73,887,764)
Net
assets:
Beginning
of
year
..................
1,262,407,113
1,316,023,100
996,412,009
1,070,299,773
End
of
year
......................
$969,674,851
$1,262,407,113
$766,303,580
$996,412,009
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
154
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
separate
funds
(Funds), eight
of
which
are
included
in
this
report.
The
Funds
follow
the
accounting
and
reporting
guidance
in
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standard
Codification
Topic
946,
Financial
Services
–
Investment
Companies
(ASC
946)
and
apply
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP),
including,
but
not
limited
to,
ASC
946.
The
Funds
offer
five
classes
of
shares:
Class
A,
Class
A1,
Class
C,
Class
R6
and
Advisor
Class.
Class
C
shares
automatically
convert
to
Class
A
shares
on
a
monthly
basis,
after
they
have
been
held
for
8
years.
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
Board
has
designated
the
Funds’
investment
manager
as
the
valuation
designee
and
has
responsibility
for
oversight
of
valuation.
The
investment
manager
is
assisted
by
the
Funds'
administrator
in
performing
this
responsibility,
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,
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.
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,
2023, 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. 
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
155
franklintempleton.com
Annual
Report
c.
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.
d.
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.
e.
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.
f.
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
156
franklintempleton.com
Annual
Report
2.
Shares
of
Beneficial
Interest
At
February
28,
2023,
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,
2023
Shares
sold
a
...................................
9,374,499
$91,424,207
3,591,579
$37,605,914
Shares
issued
in
reinvestment
of
distributions
..........
511,803
4,980,827
291,934
3,043,400
Shares
redeemed
...............................
(7,514,052)
(73,666,469)
(4,966,641)
(52,029,412)
Net
increase
(decrease)
..........................
2,372,250
$22,738,565
(1,083,128)
$(11,380,098)
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
Class
A1
Class
A1
Shares:
Year
ended
February
28,
2023
Shares
sold
...................................
1,629,993
$15,929,340
878,800
$9,157,665
Shares
issued
in
reinvestment
of
distributions
..........
1,138,784
11,078,993
783,575
8,171,625
Shares
redeemed
...............................
(10,904,192)
(106,946,707)
(7,630,006)
(79,945,305)
Net
increase
(decrease)
..........................
(8,135,415)
$(79,938,374)
(5,967,631)
$(62,616,015)
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)
Class
C
Class
C
Shares:
Year
ended
February
28,
2023
Shares
sold
...................................
273,736
$2,707,580
107,162
$1,136,320
Shares
issued
in
reinvestment
of
distributions
..........
87,516
866,653
55,461
585,908
Shares
redeemed
a
..............................
(1,551,768)
(15,461,627)
(1,039,382)
(11,066,370)
Net
increase
(decrease)
..........................
(1,190,516)
$(11,887,394)
(876,759)
$(9,344,142)
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)
Class
R6
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
157
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,
2023
Shares
sold
...................................
808,219
$7,910,303
563,602
$5,898,270
Shares
issued
in
reinvestment
of
distributions
..........
65,832
643,180
49,068
512,498
Shares
redeemed
...............................
(1,439,669)
(14,090,674)
(1,207,236)
(12,604,486)
Net
increase
(decrease)
..........................
(565,618)
$(5,537,191)
(594,566)
$(6,193,718)
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
Advisor
Class
Advisor
Class
Shares:
Year
ended
February
28,
2023
Shares
sold
...................................
4,894,392
$47,866,730
4,960,908
$51,676,263
Shares
issued
in
reinvestment
of
distributions
..........
370,534
3,618,011
280,410
2,925,499
Shares
redeemed
...............................
(10,109,124)
(99,115,580)
(7,803,130)
(81,851,089)
Net
increase
(decrease)
..........................
(4,844,198)
$(47,630,839)
(2,561,812)
$(27,249,327)
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
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,
2023
Shares
sold
a
...................................
935,144
$8,496,911
2,832,004
$29,765,785
Shares
issued
in
reinvestment
of
distributions
..........
71,587
641,655
281,317
2,944,415
Shares
redeemed
...............................
(1,340,440)
(12,129,180)
(3,183,177)
(33,471,578)
Net
increase
(decrease)
..........................
(333,709)
$(2,990,614)
(69,856)
$(761,378)
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
Class
A1
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
158
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,
2023
Shares
sold
...................................
154,602
$1,406,066
1,127,992
$11,757,194
Shares
issued
in
reinvestment
of
distributions
..........
239,766
2,147,619
1,289,219
13,483,937
Shares
redeemed
...............................
(1,965,979)
(17,672,281)
(9,118,865)
(95,490,989)
Net
increase
(decrease)
..........................
(1,571,611)
$(14,118,596)
(6,701,654)
$(70,249,858)
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)
Class
C
Class
C
Shares:
Year
ended
February
28,
2023
Shares
sold
...................................
49,455
$443,862
247,063
$2,666,503
Shares
issued
in
reinvestment
of
distributions
..........
11,960
108,011
71,603
761,498
Shares
redeemed
a
..............................
(254,210)
(2,308,573)
(1,098,342)
(11,714,112)
Net
increase
(decrease)
..........................
(192,795)
$(1,756,700)
(779,676)
$(8,286,111)
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)
Class
R6
Class
R6
Shares:
Year
ended
February
28,
2023
Shares
sold
...................................
195,598
$1,764,683
301,480
$3,186,374
Shares
issued
in
reinvestment
of
distributions
..........
2,471
22,116
26,026
273,265
Shares
redeemed
...............................
(49,101)
(439,827)
(371,186)
(3,918,137)
Net
increase
(decrease)
..........................
148,968
$1,346,972
(43,680)
$(458,498)
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
Advisor
Class
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
159
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,
2023
Shares
sold
...................................
515,861
$4,585,340
5,309,708
$55,701,740
Shares
issued
in
reinvestment
of
distributions
..........
36,068
323,194
229,524
2,404,227
Shares
redeemed
...............................
(987,251)
(8,887,881)
(7,177,566)
(75,748,315)
Net
increase
(decrease)
..........................
(435,322)
$(3,979,347)
(1,638,334)
$(17,642,348)
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
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,
2023
Shares
sold
a
...................................
5,034,594
$56,237,705
6,505,354
$74,668,190
Shares
issued
in
reinvestment
of
distributions
..........
359,759
4,010,448
588,406
6,733,288
Shares
redeemed
...............................
(5,529,268)
(61,839,776)
(8,388,304)
(96,503,731)
Net
increase
(decrease)
..........................
(134,915)
$(1,591,623)
(1,294,544)
$(15,102,253)
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
Class
A1
Class
A1
Shares:
Year
ended
February
28,
2023
Shares
sold
...................................
1,445,453
$16,204,565
1,430,332
$16,450,822
Shares
issued
in
reinvestment
of
distributions
..........
912,784
10,180,689
1,571,717
17,982,364
Shares
redeemed
...............................
(9,734,340)
(108,533,889)
(15,153,083)
(173,702,310)
Net
increase
(decrease)
..........................
(7,376,103)
$(82,148,635)
(12,151,034)
$(139,269,124)
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)
Class
C
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
160
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,
2023
Shares
sold
...................................
390,621
$4,459,801
372,844
$4,363,324
Shares
issued
in
reinvestment
of
distributions
..........
110,387
1,245,323
173,404
2,012,668
Shares
redeemed
a
..............................
(2,354,001)
(26,722,981)
(3,556,523)
(41,468,646)
Net
increase
(decrease)
..........................
(1,852,993)
$(21,017,857)
(3,010,275)
$(35,092,654)
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)
Class
R6
Class
R6
Shares:
Year
ended
February
28,
2023
Shares
sold
...................................
621,377
$6,962,652
697,316
$7,998,654
Shares
issued
in
reinvestment
of
distributions
..........
31,799
355,522
40,112
459,700
Shares
redeemed
...............................
(925,522)
(10,310,298)
(1,140,659)
(13,173,227)
Net
increase
(decrease)
..........................
(272,346)
$(2,992,124)
(403,231)
$(4,714,873)
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
Advisor
Class
Advisor
Class
Shares:
Year
ended
February
28,
2023
Shares
sold
...................................
13,699,756
$153,016,527
13,481,072
$154,039,965
Shares
issued
in
reinvestment
of
distributions
..........
500,493
5,589,520
571,588
6,548,993
Shares
redeemed
...............................
(18,155,634)
(203,073,583)
(19,330,337)
(221,476,397)
Net
increase
(decrease)
..........................
(3,955,385)
$(44,467,536)
(5,277,677)
$(60,887,439)
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
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
161
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,
2023
Shares
sold
a
...................................
7,344,243
$77,486,033
3,647,689
$32,168,851
Shares
issued
in
reinvestment
of
distributions
..........
492,068
5,167,719
407,912
3,576,644
Shares
redeemed
...............................
(9,604,558)
(101,319,682)
(4,897,944)
(43,094,292)
Net
increase
(decrease)
..........................
(1,768,247)
$(18,665,930)
(842,343)
$(7,348,797)
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
Class
A1
Class
A1
Shares:
Year
ended
February
28,
2023
Shares
sold
...................................
3,316,281
$34,841,354
1,095,758
$9,656,086
Shares
issued
in
reinvestment
of
distributions
..........
1,490,817
15,649,561
1,422,539
12,482,181
Shares
redeemed
...............................
(14,327,222)
(150,838,476)
(12,161,938)
(107,375,776)
Net
increase
(decrease)
..........................
(9,520,124)
$(100,347,561)
(9,643,641)
$(85,237,509)
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)
Class
C
Class
C
Shares:
Year
ended
February
28,
2023
Shares
sold
...................................
292,384
$3,126,145
223,633
$2,007,182
Shares
issued
in
reinvestment
of
distributions
..........
102,202
1,090,936
108,423
963,940
Shares
redeemed
a
..............................
(2,510,748)
(26,940,146)
(2,058,075)
(18,376,135)
Net
increase
(decrease)
..........................
(2,116,162)
$(22,723,065)
(1,726,019)
$(15,405,013)
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)
Class
R6
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
162
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,
2023
Shares
sold
...................................
971,841
$10,214,924
762,722
$6,515,973
Shares
issued
in
reinvestment
of
distributions
..........
59,356
623,488
19,296
169,246
Shares
redeemed
...............................
(1,261,944)
(13,270,254)
(394,184)
(3,487,824)
Net
increase
(decrease)
..........................
(230,747)
$(2,431,842)
387,834
$3,197,395
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
Advisor
Class
Advisor
Class
Shares:
Year
ended
February
28,
2023
Shares
sold
...................................
6,134,144
$65,019,517
2,264,894
$19,942,552
Shares
issued
in
reinvestment
of
distributions
..........
370,875
3,899,134
235,367
2,067,950
Shares
redeemed
...............................
(9,348,635)
(98,635,016)
(5,324,210)
(46,720,423)
Net
increase
(decrease)
..........................
(2,843,616)
$(29,716,365)
(2,823,949)
$(24,709,921)
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
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
163
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,
2023,
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’
Class
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
........
0.475%
0.486%
0.575%
Franklin
Michigan
Tax-
Free
Income
Fund
Franklin
Minnesota
Tax-
Free
Income
Fund
Franklin
Ohio
Tax-Free
Income
Fund
Gross
effective
investment
management
fee
rate
........
0.478%
0.474%
0.463%
Franklin
Oregon
Tax-
Free
Income
Fund
Franklin
Pennsylvania
Tax-Free
Income
Fund
Gross
effective
investment
management
fee
rate
........
0.469%
0.475%
3.
Transactions
with
Affiliates
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
164
franklintempleton.com
Annual
Report
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.
Effective
October
1,
2022,
the
fees
are
based
on
an
annualized
asset
based
fee
of
0.016%
plus
a
reduced
transaction
based
fee.
Prior
to
October
1,
2022,
the
fees
were
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,
2023,
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
..................
$9,428
$7,892
$1,218
$10,942
CDSC
retained
...........................
$34,615
$39,872
$5,130
$31,315
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
..................
$6,884
$13,423
$8,138
$8,531
CDSC
retained
...........................
$38,803
$41,662
$36,557
$13,699
3.
Transactions
with
Affiliates
(continued)
c.
Distribution
Fees
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
165
franklintempleton.com
Annual
Report
f.
Waiver
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
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
0.65%,
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,
2023.
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,
2023,
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
........................
$217,499
$168,745
$54,469
$269,132
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
........................
$273,861
$376,832
$274,656
$277,822
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
..............................
$33,071,326
$31,435,297
$11,263,967
$49,036,131
Sales
..................................
$7,800,000
$22,560,436
$1,000,000
$38,965,048
Net
Realized
Gains
(Losses)
.................
—
$(400,601)
—
$(1,575,905)
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
..............................
$60,945,997
$54,286,351
$98,874,490
$69,291,073
Sales
..................................
$21,280,106
$51,456,705
$77,851,187
$71,626,540
Net
Realized
Gains
(Losses)
.................
$(2,618,587)
$(1,648,625)
$(2,445,831)
$(3,837,238)
3.
Transactions
with
Affiliates
(continued)
e.
Transfer
Agent
Fees
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
166
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
3
,
 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,
2023,
the
capital
loss
carryforwards
were
as
follows:
The
tax
character
of
distributions
paid
during
the
years
ended
February
28,
2023
and
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
1
1
1
1
1
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
.............................
$
24,507,296
$
22,110,279
$
8,531,620
$
21,015,231
Long
term
.............................
53,332,925
34,674,729
27,864,937
52,995,366
Total
capital
loss
carryforwards
............
$77,840,221
$56,785,008
$36,396,557
$74,010,597
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
.............................
$
14,512,345
$
39,572,501
$
36,236,045
$
25,053,372
Long
term
.............................
21,275,148
44,409,231
75,492,346
85,078,417
Total
capital
loss
carryforwards
............
$35,787,493
$83,981,732
$111,728,391
$110,131,789
Franklin
Arizona
Tax-Free
Income
Fund
Franklin
Colorado
Tax-Free
Income
Fund
2023
2022
2023
2022
Distributions
paid
from:
Ordinary
income
........................
$35,771
$93,766
$63,451
$—
Tax
exempt
income
......................
23,779,726
24,259,101
16,012,882
16,631,004
$23,815,497
$24,352,867
$16,076,333
$16,631,004
Franklin
Connecticut
Tax-Free
Income
Fund
Franklin
Michigan
Tax-Free
Income
Fund
2023
2022
2023
2022
Distributions
paid
from:
Ordinary
income
........................
$5,853
$—
$80,597
$—
Tax
exempt
income
......................
3,933,962
4,112,118
22,095,562
22,087,253
$3,939,815
$4,112,118
$22,176,159
$22,087,253
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
167
franklintempleton.com
Annual
Report
At
February
28,
2023,
the
cost
of
investments,
net
unrealized
appreciation
(depreciation)
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
bond
discounts
and
premiums
and
wash
sales.
Franklin
Minnesota
Tax-Free
Income
Fund
Franklin
Ohio
Tax-Free
Income
Fund
2023
2022
2023
2022
Distributions
paid
from:
Ordinary
income
........................
$32,027
$151,761
$110,342
$287,417
Tax
exempt
income
......................
22,406,310
21,256,716
36,038,575
33,820,077
$22,438,337
$21,408,477
$36,148,917
$34,107,494
Franklin
Oregon
Tax-Free
Income
Fund
Franklin
Pennsylvania
Tax-Free
Income
Fund
2023
2022
2023
2022
Distributions
paid
from:
Ordinary
income
........................
$112,120
$—
$57,089
$—
Tax
exempt
income
......................
27,910,851
26,818,763
21,440,853
22,202,850
$28,022,971
$26,818,763
$21,497,942
$22,202,850
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
.......................
$811,542,330
$571,306,424
$155,996,471
$778,677,222
Unrealized
appreciation
.....................
$5,577,923
$3,855,024
$743,504
$3,454,622
Unrealized
depreciation
.....................
(47,935,583)
(39,867,113)
(14,233,586)
(52,287,130)
Net
unrealized
appreciation
(depreciation)
.......
$(42,357,660)
$(36,012,089)
$(13,490,082)
$(48,832,508)
Distributable
earnings:
Undistributed
tax
exempt
income
..............
$79,089
$492,437
$89,689
$262,727
Total
distributable
earnings
..................
$79,089
$492,437
$89,689
$262,727
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
.......................
$857,265,042
$1,243,924,516
$999,807,600
$818,467,520
Unrealized
appreciation
.....................
$2,706,516
$11,040,576
$6,797,736
$3,411,137
Unrealized
depreciation
.....................
(53,134,212)
(69,669,953)
(46,667,889)
(67,210,185)
Net
unrealized
appreciation
(depreciation)
.......
$(50,427,696)
$(58,629,377)
$(39,870,153)
$(63,799,048)
Distributable
earnings:
Undistributed
tax
exempt
income
..............
$119,933
$91,281
$537,692
$1,456,054
Total
distributable
earnings
..................
$119,933
$91,281
$537,692
$1,456,054
5.
Income
Taxes
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
168
franklintempleton.com
Annual
Report
6.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities)
for
the
year
ended
February
28,
2023,
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
identifi
ed
in
the
accompanying
Schedule
s
of
Investments.
At
February
28
,
202
3
,
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
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.
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
..............................
$228,185,880
$78,505,112
$22,583,897
$217,406,625
Sales
..................................
$323,947,837
$182,423,213
$41,844,492
$310,462,142
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
..............................
$172,103,986
$355,143,198
$345,033,609
$249,339,712
Sales
..................................
$328,841,335
$599,287,969
$498,982,052
$342,285,740
Value
Percentage
of
Net
Assets
Franklin
Oregon
Tax-Free
Income
Fund
...........................................
$
4,945,600
0.5%
Franklin
Pennsylvania
Tax-Free
Income
Fund
......................................
3,635,438
0.5%
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
169
franklintempleton.com
Annual
Report
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
2,
2024.
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,
2023,
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.
A
summary
of
inputs
used
as
of
February
28,
2023,
in
valuing
the
Fund's
assets
carried
at
fair
value,
is
as
follows:
Level
1
Level
2
Level
3
Total
Franklin
Arizona
Tax-Free
Income
Fund
Assets:
Municipal
Bonds
.........................
$
—
$
769,184,670
$
—
$
769,184,670
Total
Investments
in
Securities
...........
$—
$769,184,670
$—
$769,184,670
Franklin
Colorado
Tax-Free
Income
Fund
Assets:
Investments
in
Securities:
Corporate
Bonds
........................
—
—
1,375,254
1,375,254
Municipal
Bonds
.........................
—
528,519,081
—
528,519,081
Short
Term
Investments
...................
—
5,400,000
—
5,400,000
Total
Investments
in
Securities
...........
$—
$533,919,081
$1,375,254
$535,294,335
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
170
franklintempleton.com
Annual
Report
A
reconciliation
in
which
Level
3
inputs
are
used
in
determining
fair
value
is
presented
when
there
are
significant
Level
3
assets
and/or
liabilities
at
the
beginning
and/or
end
of
the year.
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.
Level
1
Level
2
Level
3
Total
Franklin
Connecticut
Tax-Free
Income
Fund
Assets:
Investments
in
Securities:
Municipal
Bonds
.........................
$
—
$
141,606,389
$
—
$
141,606,389
Short
Term
Investments
...................
—
900,000
—
900,000
Total
Investments
in
Securities
...........
$—
$142,506,389
$—
$142,506,389
Franklin
Michigan
Tax-Free
Income
Fund
Assets:
Investments
in
Securities:
Corporate
Bonds
........................
—
—
1,768,184
1,768,184
Municipal
Bonds
.........................
—
727,776,530
—
727,776,530
Short
Term
Investments
...................
—
300,000
—
300,000
Total
Investments
in
Securities
...........
$—
$728,076,530
$1,768,184
$729,844,714
Franklin
Minnesota
Tax-Free
Income
Fund
Assets:
Investments
in
Securities:
Municipal
Bonds
.........................
—
761,597,346
—
761,597,346
Short
Term
Investments
...................
—
45,240,000
—
45,240,000
Total
Investments
in
Securities
...........
$—
$806,837,346
$—
$806,837,346
Franklin
Ohio
Tax-Free
Income
Fund
Assets:
Investments
in
Securities:
Corporate
Bonds
........................
—
—
3,143,438
3,143,438
Municipal
Bonds
.........................
—
1,151,816,701
—
1,151,816,701
Short
Term
Investments
...................
—
30,335,000
—
30,335,000
Total
Investments
in
Securities
...........
$—
$1,182,151,701
$3,143,438
$1,185,295,139
Franklin
Oregon
Tax-Free
Income
Fund
Assets:
Investments
in
Securities:
Corporate
Bonds
........................
—
—
2,455,810
2,455,810
Municipal
Bonds
.........................
—
955,581,637
—
955,581,637
Short
Term
Investments
...................
—
1,900,000
—
1,900,000
Total
Investments
in
Securities
...........
$—
$957,481,637
$2,455,810
$959,937,447
Franklin
Pennsylvania
Tax-Free
Income
Fund
Assets:
Investments
in
Securities:
Corporate
Bonds
........................
—
—
1,964,649
1,964,649
Municipal
Bonds
.........................
—
747,603,823
—
747,603,823
Short
Term
Investments
...................
—
5,100,000
—
5,100,000
Total
Investments
in
Securities
...........
$—
$752,703,823
$1,964,649
$754,668,472
12.
Fair
Value
Measurements
(continued)
Franklin
Tax-Free
Trust
Notes
to
Financial
Statements
171
franklintempleton.com
Annual
Report
Abbreviations
Selected
Portfolio
AGMC
Assured
Guaranty
Municipal
Corp.
BAM
Build
America
Mutual
Assurance
Co.
COP
Certificate
of
Participation
ETM
Escrowed
to
Maturity
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.
Franklin
Tax-Free
Trust
Report
of
Independent
Registered
Public
Accounting
Firm
172
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
Opinions
on
the
Financial
Statements
We
have
audited
the
accompanying
statements
of
assets
and
liabilities,
including
the
schedules
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,
2023,
the
related
statements
of
operations
for
the
year
ended
February
28,
2023,
the
statements
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
ended
February
28,
2023,
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,
2023,
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,
2023
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,
2023
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,
2023
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)
173
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,
2023
:
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)
$23,779,726
$16,012,882
$3,933,962
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)
$22,095,562
$22,406,310
$36,038,575
Pursuant
to:
Franklin
Oregon
Tax-Free
Income
Fund
Franklin
Pennsylvania
Tax-
Free
Income
Fund
Exempt-Interest
Dividends
Distributed
§852(b)(5)(A)
$27,910,851
$21,440,853
Franklin
Tax-Free
Trust
Board
Members
and
Officers
174
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
118
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
118
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
118
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
175
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
118
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
118
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
118
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
176
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
2021
110
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)
Chairman
of
the
Board
and
Trustee
Chairman
of
the
Board
since
January
2023
and
Trustee
since
2007
129
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
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)
Trustee
Since
2013
118
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
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
177
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.;
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;
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
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
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
178
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
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
179
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
six-month
period
ended
June
30.
Quarterly
Schedule
of
Investments
The
Trust
files
a
complete
schedule
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
04/23
©
2023
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 $676,594 for the fiscal year ended February 28, 2023 and $706,997 for the fiscal year ended February 28, 2022.
 
(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.
 
The aggregate 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 were $70,000 for the fiscal year ended February 28, 2023, and $0 for the fiscal year ended February 28, 2022. The services for which these fees were paid included global access to tax platform International Tax View.
 
(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 $0 for the fiscal year ended February 28, 2023 and $11,178 for the fiscal year ended February 28, 2022. 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 $245,711 for the fiscal year ended February 28, 2023 and $73,743 for the fiscal year ended February 28, 2022. The services for which these fees were paid included professional fees in connection with determining the feasibility of a U.S. direct lending structure, benchmarking services in connection with the ICI TA Survey, professional fees in connection with SOC 1 Reports, fees in connection with a license for accounting and business knowledge platform Viewpoint, fees in connection with a license for employee development tool ProEdge 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 $315,711 for the fiscal year ended February 28, 2023 and $84,921 for the fiscal year ended February 28, 2022.
 
(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.
 
(i) N/A
 
 
(j) N/A
 
 
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-CSRS, 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
 
 
(a)(2)(1) There were no written solicitations to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the Registrant to 10 or more persons.
 
(a)(2)(2) There was no change in the Registrant’s independent public accountant during the period covered by the report.
 
(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, 2023
 
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, 2023
 
 
By S\CHRISTOPHER KINGS______________________
      Christopher Kings
      Chief Financial Officer, Chief Accounting Officer and Treasurer
Date  April 26, 2023